HomeMy Public PortalAbout11) 10A Comprehensive Annual Financial Report (CAFR)City Council
January 16, 2018
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3. On June 21, 2016, the City Council adopted Resolution No. 16-5177 confirming the
factors used for calculating the annual appropriations limit for the Fiscal Year (FY)
2016-17 City Budget.
4. On March 17, 2017, the Audit Standing Committee (i.e., then Mayor Yu and
Councilmember Chavez) met and received the recommendation from staff to
recommend to the City Council a first amendment to the agreement with Vavrinek,
Trine, Day & Co., LLP (VTD) for audit services for the FY 2016-17.
5. On April4, 2017, the City Council approved a first amendment to the agreement with
VTD for audit services for the FY 2016-17.
6. On May 1, 2017, the Administrative Services Department received notice from the
Government Finance Officers' Association (GFOA) that the City had received the
Excellence in Financial Reporting Award program for the FY 2015-16 CAFR.
7. On June 17, 2017, the Audit Standing Committee met with City staff and audit staff
from VTD and reviewed the planned engagement for the independent audit for the FY
2016-17.
8. On, December 15, 2017, the Audit Standing Committee once again met with City staff
and audit staff from VTD and discussed the results of the field work and audit.
ANALYSIS:
Financial Reporting
A CAFR is a set of United States government financial statements comprising the
financial report of a state, municipal or other governmental entity that complies with the
accounting requirements, (i.e., Generally Accepted Accounting Principles (GAAP)),
created and circulated by the Governmental Accounting Standards Board (GASB).
The CAFR accounting structure provides for standardization of financial reporting. All
levels of government including federal, state, local and municipal, produce a CAFR to
document an accurate picture of institutional funds, enterprise or financial holdings,
assets and total investment incomes for those government and nongovernmental entities
using the report.
Single Audit
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
City Council
January 16, 2018
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Audit". For the FY 2016-17, the City did not receive in excess of $750,000 in federal grant
monies, therefore a Single Audit and corresponding reports were not necessary.
Auditors
It is industry standard to request proposals from qualified Certified Public Accounting (CPA)
firms for an initial three-year period to audit its financial statements, with the option to
renew the contract for an additional two fiscal years, for a total of five years. The City
selected VTD in the spring of 2016 for auditing services beginning with the FY 2015-
2016, and the City Council approved an amendment for auditing services for FY 2016-
17. The City anticipates contracting with them for auditing services for the next three
fiscal years. A separate request of a contract extension will come to the City Council in
the spring of 2018.
Gann Limit and Other Reports
Article XIII-B (Gann Limit) provides limits to the amount of tax proceeds state and local
governments can spend each year. The limit for any fiscal year is equal to the previous
year's limit, adjusted for population changes and the change in the U.S. Consumer Price
Index or California per capital personal income, whichever is less. A review of the City's
calculations is required by State law and is included as Attachment B. In addition, the
auditors are required by the Statement of Auditing Standards (SAS) to prepare
independent report on internal controls over financial reporting and a schedule of findings
and responses. These documents are included as Attachment C and D respectively.
Audit
VTD has issued an unmodified ("clean") opinion on the City financial statements for the year
ended June 30, 2017. The City also provides a narrative introduction, overview and analysis
of the CAFR in the form of Management's Discussion and Analysis (MD&A). It can be found
immediately following the independent auditors' report.
The City's net position decreased by $2.3 million from $70.8 million as of June 30, 2016,
to $68.5 million as of June 30, 2017, as a result of this year's operations. Total revenue
from all sources was $19.3 million and the total cost of all City programs was $21.6 million.
The City's total long-term liabilities increased by $2.0 million during the current fiscal year.
The key factors in this increase are the CaiPERS pension liability ($1.5 million), Other
Post-Employment Benefits (OPEB) obligation ($0.5 million).
The General Fund expenditures of $15.3 million exceeded General Fund revenues of
$14.4 million, which provided for a reduction in Fund Balance $0.9 million. The reduction
is primarily a result of the Temple City Library expansion. The Library is owned and
operated by the County of Los Angeles, however the City has entered into an agreement
to help fund the expansion efforts. A total of $1.95 million was appropriated and
committed, with the first installment of $450,000 paid to the County of Los Angeles in FY
2016-17. An obligation of $1.5 million remains and is anticipated to be distributed to the
County of Los Angeles over the next two fiscal years. The further reduction of Fund
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January 16, 2018
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Balance is a result of 5800 Temple City Blvd., the Primrose properties and of the near
completion of the update of the General Plan and the Specific Plan.
Primary revenue sources for this fund are sales tax, property tax and motor vehicle in
lieu. The General Fund is responsible for general services of the City. This includes public
safety, public works, community development, community services and administration.
The largest expenditure is for public safety, which was $5.2 million for FY 2016-17.
GFOA Excellence in Financial Reporting Award
Staff will once again submit the FY 2016-17 CAFR to the GFOA for the Excellence in
Financial Reporting 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.
Audit Standing Committee
For greater transparency and accountability, the City Council appointed an Audit Standing
Committee (Committee), making it directly responsible for monitoring the work performed
by the independent auditor. As outlined in the Audit Committee Charter, also adopted by
the City Council, the responsibilities of the Audit Standing Committee include:
• Assisting the City Council in monitoring, overseeing and assessing the City's:
~ Accounting and financial reporting processes;
~ Quality and integrity of the City's financial statements, including audits of
the financial statements;
~ Qualifications, independence and performance of the independent auditor;
~ Compliance with applicable legal and regulatory financial accounting
requirements; and
~ Management's ability to evaluate adequacy of internal controls and capably
identify and control risks posed by its current and planned activities.
• Providing an avenue for communication among the independent auditors, City
management and the City Council.
The Committee also has such other duties as set forth in this charter and as directed by
the City Council. As noted above, the Committee has met on a number of occasions
throughout the fall, has completed their due diligence as outlined in the Committee Charter
and has brought forward their recommendation to receive and file the CAFR for the year
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January 16, 2018
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ended June 30, 2017. The Committee will continue to meet throughout this year as well,
with staff reporting back to the Audit Committee.
CITY STRATEGIC GOALS:
Approval to receive and file the CAFR for FY 2016-17 will further City's Strategic Goal to
promote Good Governance.
FISCAL IMPACT:
This action of receiving and filing the CAFR does not have a fiscal impact on the FY 2017-
18 City Budget. However, staff has begun the mid-year budget analysis and will be
incorporating the results of actual spending in the FY 2016-17, as reflected in the CAFR, in
the FY 2017-18 Mid-Year Budget Report, which will be presented to the entire City Council
on February 6, 2018.
ATTACHMENTS:
A. Comprehensive Annual Financial Report (CAFR) for the year ended June 30, 2018
B. Independent Accountants' Report on Applying Agreed-Upon Procedures Related to
the Article XIII-B Appropriations Limit Calculation
C. Independent Auditors' Report on Internal Control Over Financial Reporting
D. Auditor's Communication to the City Council
ATTACHMENT A
CITY OF TEMPLE CITY, CALIFORNIA
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED
JUNE 30, 2017
City of Temple City, California
Comprehensive Annual Financial Report
Year Ended June 30,2017
Prepared by:
ADMINISTRATIVE SERVICES DEPARTMENT
Tracey L. Hause
Administrative Services Director
CITY OF TEMPLE CITY, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30,2017
TABLE OF CONTENTS
INTRODUCTORY SECTION
PAGE
Letter ofTransmittal ...................................................................................................................... i
List of Elected Officials and Management Personnel .................................................................. v
Organizational Chart ................................................................................................................... vi
Ce1tificate of Achievement for Excellence in Financial Reporting ............................................ vii
FINANCIAL SECTION
Independent Auditors' Report .................................................................................................. I
Management's Discussion and Analysis ................................................................................... 4
Basic Financial Statements
Government-wide Financial Statements
Statement of Net Position .............................................................................................. II
Statement of Activities .................................................................................................. 12
Fund Financial Statements
Description of Major Funds .......................................................................................... 13
Balance Sheet ................................................................................................................ 14
Reconciliation of the Balance Sheet of Governmental Funds
To the Statement of Net Position ................................................................................. 16
Statement of Revenues, Expenditures and Changes in Fund Balances ......................... 17
Reconciliation of the Statement of Revenues, Expenditures and Changes
In Fund Balances of Governmental Funds to the Statement of Activities .................. 19
Proprietary Fund
Description of Proprietary Fund .................................................................................... 20
Statement of Net Position .............................................................................................. 21
Statement of Revenues, Expenses and Changes in Net Position ................................... 22
Statement of Cash Flows ............................................................................................... 23
Fiduciary Funds
Description of Fiduciary Funds ..................................................................................... 24
Statement of Fiduciary Net Position .............................................................................. 25
Statement of Changes in Fiduciary Net Position ........................................................... 26
Notes to Financial Statements ........................................................................................... 27
REQUIRED SUPPLEMENTARY INFORMATION
Budgetary Comparison Schedule
General Fund ................................................................................................................. 57
Notes to Budgetary Comparison Schedule ................................................................................. 59
Schedule of Funding Progress -Other Postemployment Benefits ............................................. 60
Schedule of Propmtionate Share of the Net Pension Liability ................................................... 61
Schedule of Contributions .......................................................................................................... 62
CITY OF TEMPLE CITY, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30,2017
SUPPLEMENTARY SCHEDULES
Major Capital Projects Fund
TABLE OF CONTENTS
PAGE
Description of Major Capital Projects Fund .................................................................. 63
Schedules of Revenues, Expenditures and Changes in Fund Balances-
Budget and Actual:
Capital Improvements .............................................................................................. 64
Nonmajor Governmental Funds
Combining Balance Sheets ............................................................................................ 65
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances ............................................................................................................. 66
Nonmajor Special Revenue Funds
Description ofNonmajor Special Revenue Funds ........................................................ 67
Combining Balance Sheet ............................................................................................. 69
Combining Statement of Revenues, Expenditures and Changes in Fund Balances ...... 74
Schedule of Revenues, Expenditures and Changes in Fund Balances-Budget and Actual
Permanent Fund ............................................................................................................. 79
Traffic Safety Fund ....................................................................................................... 80
COPS Fund .................................................................................................................... 81
Public Transportation -Prop A Fund ............................................................................ 82
Public Transportation-Prop C Fund ............................................................................ 83
Used Oil Fund ............................................................................................................... 84
State Gas Tax Fund ....................................................................................................... 85
CDBG Fund ................................................................................................................... 86
Air Quality Improvement Fund ..................................................................................... 87
Measure R Fund ............................................................................................................ 88
Sewer Reconstruction Fund ........................................................................................... 89
HSIP Fund ..................................................................................................................... 90
Surface Transpottation Program-Local Fund ............................................................. 91
199211996 Park Bond Fund ........................................................................................... 92
Park Acquisition Fund ................................................................................................... 93
Lighting and Landscape District Fund .......................................................................... 94
Environmental Protection Agency Fund ....................................................................... 95
5'" District Excess Grant ................................................................................................ 96
CITY OF TEMPLE CITY, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2017
TABLE OF CONTENTS
STATISTICAL SECTION
PAGE
Description of Statistical Section Contents ....................................................................................... 97
Financial Trends
Net Position by Component-Last Ten Fiscal Years ................................................................. 98
Change in Net Position-Expenses and Program Revenues-Last Ten Fiscal Years ............... 99
Fund Balances of Governmental Funds -Last Ten Fiscal Years ............................................. I 00
Changes in Fund Balances of Governmental Funds-Last Ten Fiscal Years .......................... 101
Revenue Capacity
Assessed Value of Taxable Property-Last Ten Fiscal Years ................................................. I 02
Direct and Overlapping Prope1ty Tax Rates -Last Ten Fiscal Years ...................................... I 03
Property Tax Levies and Collections-Last Ten Fiscal Years ................................................. I 04
General Fund Revenues -Last Ten Fiscal Years ..................................................................... I 05
Principal Property Taxpayers-Current Fiscal Year and Nine Fiscal Years ............................ 106
Top 25 Sales Tax Producers-Current Fiscal Year .................................................................. I 07
Debt Capacity
Direct and Overlapping Debt.. .................................................................................................. I 08
Demographic and Economic Information
Demographic and Economic Statistics-Last Ten Fiscal Years .............................................. II 0
Operating Information
Construction Activity -Last Ten Fiscal Years ........................................................................ Ill
Full-Time Equivalent City Employees by Function-Last Ten Fiscal Years .......................... 112
Operating Indicators by Function-Last Ten Fiscal Years ...................................................... 113
Capital Asset Statistics by Function/Program .......................................................................... 114
Population growth is expected to slow slightly this year and next, with the rate of growth at
approximately 0.6% this year and in 2018. Even at such low growth rates, the county will increase by
over 100,000 residents during that time period. Most of the recent population growth in Los Angeles
County has been due to natural increase (births outnumbering deaths), while net migration was
slightly negative again last year. The county's high cost of living and lack of affordable housing units
for low and middle-income households are contributing to the slowdown in population growth.
Like most other parts of the state, the housing market in Los Angeles County improved in 2016. The
median sales price for a home was $519,300, a 6.0% increase over 2015 median price of $489,600.
New home construction continue to accelerate in 2016 and should continue to grow, although at
lower rates, both this year and next.
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) 2016-17 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.
• Continued development of a senior master plan.
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.
• Recognition of excellence in financial reporting from Government Finance Officers
Association of the United States and Canada.
• Fulfilled Community Development Block Grant (CDBG) program drawdown requirement
and avoided recapture of funds.
• Maintained almost $3.4 million in General Fund operating reserves.
Public Health and Safety
• Continued emergency preparation and training for residents through the Community
Emergency Response Team (CERT).
ii
" C o n t i n u e d t h e s u c c e s s f u l N e i g h b o r h o o d W a t c h P r o g r a m i n c l u d i n g m o n t h l y n e i g h b o r h o o d
m e e t i n g s .
B a s i c C i t v S e r v i c e s
" C o n t i n u e d t o d i g i t i z e c r i t i c a l c i t y d o c u m e n t s , a l l o w i n g f o r e a s y r e f e r e n c e a n d i m p r o v e d
p u b l i c t r a n s p a r e n c y .
Q u a l i t y o f L i f e
" S a w s u s t a i n e d g r o w t h i n p r o p e r t y a n d s a l e s t a x r e v e n u e , a f f i r m i n g e f f e c t i v e n e s s o f t h e C i t y
a n d c o m m u n i t y ' s c o l l a b o r a t i v e a p p r o a c h t o n e i g h b o r h o o d e n h a n c e m e n t .
" C o n t i n u e d a r o b u s t o f f e r i n g o f c o m m u n i t y e v e n t s i n c l u d i n g a n a n n u a l f e s t i v a l a n d
n u m e r o u s c o m m u n i t y c e l e b r a t i o n s .
" C o n t i n u e d t o s e c u r e s p o n s o r s h i p s t o e n h a n c e t h e s u m m e r C o n c e r t s i n P a r k s
" T h e C i t y c o n t i n u e s t o a p p l a u d a n d r e c o g n i z e v o l u n t e e r s f o r l e n d i n g h e l p i n g h a n d s .
" F u n d e d $ 4 5 0 , 0 0 0 f o r i n i t i a l p h a s e o f t h e L i b r a r y r e c o n s t r u c t i o n .
C i t i z e n E d u c a t i o n / C o m m u n i c a t i o n
" E x p a n d e d t h e C i t y ' s m a i n s t r e a m s o c i a l m e d i a p l a t f o r m s , w h i c h n o w i n c l u d e F a c e b o o k ,
T w i t t e r , l n s t a g r a m a n d N e x t d o o r .
" L a u n c h e d W e i b o , a C h i n e s e s o c i a l m e d i a p l a t f o r m t o b e t t e r e n g a g e t h e C i t y ' s g r o w i n g
C h i n e s e - s p e a k i n g p o p u l a t i o n . A s i m i l a r p l a t f o r m , W e C h a t , w i l l g o l i v e i n e a r l y 2 0 1 7 .
" S t r e n g t h e n e d r e l a t i o n s w i t h l o c a l m e d i a o u t l e t s ( E n g l i s h a n d C h i n e s e o u t l e t s ) b y i s s u i n g
n e w s r e l e a s e s , a d v i s o r i e s a n d p l a c e m e n t s t o r i e s .
" R e p o s i t i o n e d t h e C i t y ' s a w a r d - w i n n i n g p u b l i c a t i o n , C O N N E C T , t o p r o v i d e e v e n m o r e
r e l e v a n t c o n t e n t t o T e m p l e C i t y ' s d i v e r s e c o m m u n i t y .
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
" B e g a n t h e r e p a y i n g o f 1 1 . 4 m i l e s o f c i t y s t r e e t s f o r p u r p o s e s o f p r e v e n t a t i v e m a i n t e n a n c e .
" C o m p l e t e d r e c o n s t r u c t i o n o f T e m p l e C i t y B o u l e v a r d .
" N e w d o w n t o w n p u b l i c p a r k i n g , w i t h c o n s t r u c t i o n a t T C B l v d , p l a n n e d p a r k i n g e x p a n s i o n o n
P r i m r o s e .
i i i
City of Temple City, California
List of Elected Officials and Management Personnel
June 30, 2017
City Council
Cynthia Sternquist, Mayor
William Man, Mayor Tempore
Tom Chavez, Council member
Nanette Fish, Council member
Vincent Yu, Council member
Administrative and Department Heads
City Manager
Administrative Services Director
Assistant to the City Manager/Economic Development Manager
City Clerk
Community Development Director
Parks and Recreation Director
y
Bryan Cook
Tracey L. Hause
Brian S. Haworth
Peggy Kuo
Michael D. Forbes
Cathy Burroughs
Electorate
I
City Council
Planning Parks & Transportation &
Commission Recreation City Attorney City Manager Public Safety Youth Committee
Commission Commission
Management Administrative Community Parks &
Services Services Development Recreation
Department Department Department Department
vi
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective
financial position of the governmental activities, each major fund, and the aggregate remaining fund information
of the City, as of June 30, 2017, and the respective changes in financial position, and, where applicable, cash
flows thereof for the year then ended in accordance with accounting principles generally accepted in the United
States of America.
Other Matters
Required Supplementwy Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis, budgetary comparison schedule for the General Fund, schedule of funding progress,
schedule of proportionate share of the net pension liability and schedule of contributions on pages on pages 4
through 10 and 57 through 62 be presented to supplement the basic financial statements. Such information,
although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board
who considers it to be an essential part of financial repot1ing for placing the basic financial statements in an
appropriate operational, economic, or historical context. We have applied certain limited procedures to the
required supplementary information in accordance with auditing standards generally accepted in the United States
of America, which consisted of inquiries of management about the methods of preparing the information and
comparing the information for consistency with management's responses to our inquiries, the basic financial
statements, and other knowledge we obtained during our audit of the basic financial statements. We do not
express an opinion or provide any assurance on the information because the limited procedures do not provide us
with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming optmons on the financial statements that collectively
comprise the City's basic financial statements. The introductory section, combining and individual nonmajor fund
financial statements and budgetary comparison schedules, and statistical section, are presented for purposes of
additional analysis and are not a required part of the basic financial statements.
The combining and individual nonmajor fund financial statements and budgetary comparison schedules are the
responsibility of management and were derived from and relate directly to the underlying accounting and other
records used to prepare the basic financial statements. Such information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and certain additional procedures, including
comparing and reconciling such information directly to the underlying accounting and other records used to
prepare the basic financial statements or to the basic financial statements themselves, and other additional
procedures in accordance with auditing standards generally accepted in the United States of America. In our
opinion, the combining and individual nonmajor fund financial statements and budgetary comparison schedules
are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of
the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them.
2
Other Reporting Required by Government Auditing Stant/artis
In accordance with Government Auditing Standards, we have also issued our report dated December 28, 2017, on
our consideration of the City's internal control over financial reporting and on our tests of its compliance with
certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that
repot1 is to describe the scope of our testing of internal control over financial repot1ing and compliance and the
results of that testing, and not to provide an opinion on internal control over financial repot1ing or on compliance.
That repot1 is an integral part of an audit performed in accordance with Government Auditing Standards in
considering the City's internal control over financial repot1ing and compliance.
~ -;;::._, -v~ ~ ~ /4~
Rancho Cucamonga,' California
December 28, 2017
3
City of Temple City
Management's Discussion and Analysis
June 30, 2017
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, 2017. 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 decreased by $2.3 million from $70.8 million as of June 30, 2016, to
$68.5 million as of June 30, 2017, as a result of this year's operations;
• The total revenue from all sources was $19.3 million;
• The total cost of all City programs was $21.6 million; and
• The City's total debt increased by $2.0 million during the current fiscal year. The key factors
in this increase are the net increase in Other Post Employment Benefits (OPEB) obligation
and compensated absences of $0.5 million, and $1.5 million in pension liability.
Fund Financial Statements:
• As of June 30, 2017, the City's governmental funds reported combined ending fund balances
of $25.8 million, a decrease of $140,000 from the prior fiscal year. Approximately $3.2 million
of the $25.8 million balance is unassigned and is available for spending at the government's
discretion;
• As of June 30, 2017, the total fund balance of the City's General Fund was $19.0 million,
an decrease of $0.9 million from the prior year level of $19.8 million; and
• In the General Fund, expenditures exceeded revenues by $0.9 million, before other
financing sources/uses.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City of Temple City's
basic financial statements. The City of Temple City's Comprehensive Annual Financial Report
(CAFR) is comprised of three components: Introduction, Financial Section and Statistical Section.
Government-wide financial statements. The government-wide financial statements are designed
to provide readers with a broad overview of the City of Temple City's finances, in a manner similar to
a private-sector business.
The government-wide financial statements include not only the City, but also all legal entities for
which the City is financially accountable, including the Successor Agency Private-Purpose Trust.
The statement of net position presents information on all of the City of Temple City's total assets and
deferred outflows of resources and total liabilities and deferred inflows of resources, with the
difference reported as total net position. Over time, increases and decreases in net position may
serve as a useful indicator of whether the financial position of the City is improving or deteriorating.
The statement of activities presents information showing how the City's net position changed during
the most recent fiscal year. All changes in net position are reported as soon as the underlying event
giving rise to the change occurs, regardless of the timing related to cash flows. Thus, revenues and
expenses are reported in this statement for some items that will only result in cash flows in future
fiscal periods (e.g., uncollected taxes).
4
City of Temple City
Management's Discussion and Analysis
June 30, 2017
Both of the government-wide financial statements report on functions of the City of Temple City that
are principally supported by taxes and inter-governmental revenues (governmental activities). The
governmental activities of the City of Temple City include general government, community
development, public safety, public works and community services.
Fund financial statements. A fund is a group of related accounts that is used to maintain control
over resources that have been segregated for specific activities or objectives. The City of Temple
City, like other state and local governments, uses fund accounting to ensure and demonstrate
compliance with finance-related legal requirements. All of the funds of the City of Temple City are
governmental funds.
Governmental funds. Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government-wide financial statements. However, unlike
the government-wide financial statements, governmental fund financial statements focus on near-
term inflows and outflows of spendable resources, as well as balances of spendable resources
available at the end of the fiscal year. Such information may be useful in evaluating a government's
near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By
doing so, readers may better understand the long-term impact of the City's near-term financing
decisions. Both the governmental funds balance sheet and the statement of revenues, expenditures,
and changes in fund balances provide a reconciliation to facilitate this comparison between
governmental funds and governmental activities.
Information is presented separately in the governmental funds balance sheet and in the statement of
revenues, expenditures, and changes in fund balances for the General Fund, Bicycle Transportation
Account Fund, and Capital Improvement Fund, which are considered to be major funds.
The City of Temple City adopts an annual appropriated budget. A budgetary comparison statement
has been provided to demonstrate compliance with this budget.
Proprietary funds. The City maintains only one category of a proprietary fund, an internal service
fund.
Fiduciary fund. The City also maintains an Agency fund to account for the resources held and
administered by the City of Temple City in a fiduciary capacity acting as the Successor Agency to
the former Temple City Redevelopment Agency.
Notes to basic financial statements. The notes provide additional information that is essential to a
full understanding of the data provided in the government-wide and fund financial statements.
Other information. In addition to the basic financial statements and accompanying notes, this
report also presents certain required supplementary information concerning the City's budget
comparison schedules for the General Fund and each major revenue fund and progress in funding
its obligation to provide pension benefits to its employees.
Government-wide Financial Analysis
Our analysis focuses on the net position and changes in net position of the City's governmental
activities for the fiscal year ended June 30, 2017.
5
City of Temple City
Management's Discussion and Analysis
June 30, 2017
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 $2.3 million during FY 2016-17, primarily as a result of a
decrease in capital assets as a result of additional depreciation and a net decrease in net position
as a result of City operations. Major projects in City operations include completion of the parking lot
at 5800 Temple City Boulevard and the first installment made to the County of Los Angeles for the
Children's Library. The largest portion of the City's net position is its investment in capital assets
(e.g. land, infrastructure, building and equipment) representing 75% 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, $7.1 million or 10%, represents resources
that are subject to external restrictions on how they may be used. The remaining balance of
unrestricted net assets of $9.7 million or 15% may be used to meet the government's ongoing
obligations to citizens and creditors.
Current and other assets
Capital assets
Deferred outflows of resources
Current and other liabilities
Long-term liabilities
City of Temple City
Condensed Statement of Net Position
June 30:
$
Total assets
2017
29,781,583
51,724,138
81,505,721
1,904,700
3,324,081
11,313,342
$
2016
29,288,798
53,143,904
82,432,702
966,881
2,765,292
9,350,391
$
Increase
(Decrease)
492,785
(1,419,766)
(926,981)
937,819
558,789
1,962,951
To ta I I i a bi I iti e s __ __::14'-''"'63'-'7"'4"-'2'-"3:..___ __ 1"-'2"-, =c11=.,5"', 6,8'-=3:..___ __ _,2,_5'"2'-'1"-, 7c:4,0c_
Deferred inflows of resources 205,215 422,213 (216,998)
Net position
Net investment in capital assets 51,724,138 53,143,904 (1,419,766)
Restricted 7,098,321 6,132,978 965,343
Unrestricted 9,745,324 11,584,805 (1,839,481)
Total net position $ 68,567,783 $ 70,861,687 $ (2,293,904)
6
City of Temple City
Management's Discussion and Analysis
June 30, 2017
Statement of Activities. Governmental activities decreased the City's net position by $2.3 million
for FY 2016-17. The total revenue for the fiscal year is $19.3 million, which is an increase of $.4
million from the prior year. The total expenses increased by $4.5 million to $21.6 million from the
prior year total of $17.8 million. The following table presents the comparative revenue and expense
data for fiscal years ended June 30, 2017 and 2016.
Revenues
Program revenues
Charges for services
City of Temple City
Condensed Statement of Changes in Net Position
For the Fiscal Year Ended:
2017 2016
$
Operating contributions and grants
4,420,926 $
4,483,942
4,033,056 $
4,415,924
Genera I revenues
Taxes
I ntergovernmenta I
Interest income
Other revenue
9,962,935
8,575
78,329
385,458
9,759,882
15,273
282,190
399,458
Increase
(Decrease)
387,870
68,018
203,053
(6,698)
(203,861)
(14,000)
T ota I revenues ---"19""'"'34"'0,_,1o.:6e.:5c_ __ =:18"",9"'0"'5"-, 7,_,8e.:3c_ ___ 4:c:3e::4"',3"-'8<=2c..
Expenses
General government
Community development
Public safety
Public works
Community services
5,433,642
2,554,728
5,297,088
4,988,450
3,360,161
4,051,109
2,165,352
4,958,470
2,901,053
3,042,016
1,382,533
389,376
338,618
2,087,397
318,145
T ota I expenses ___ 2"'1"',6"'3'-4"',0'-'6"'9 ___ 1=.;7"-, 1"'1"'8"',0'-'0"'0 ____ 4'-',5"'1"'6"',0'-'6"'9-
Increase (Decrease) in net position (2,293,904) 1,787,783 (4,081,687)
Net position, beginning of the year 70,861,687 69,073,904 1,787,783
Net position, end of the year $ 68,567,783 $ 70,861,687 $ (2,293,904)
7
City of Temple City
Management's Discussion and Analysis
June 30, 2017
Key elements of the significant revenues in FY 2016-17 are primarily because of an increase in
property taxes and motor vehicle in-lieu fee. Taxes are comprised of sales tax, property tax,
franchise, transient occupancy tax and vehicle in lieu tax.
Expenses of the governmental activities totaled $21.6 million, which is an increase of $4.5 million or
26.4% over the prior year. Increased spending was a result of additional costs contractual costs to
the Los Angeles Sheriffs Department for law enforcement ($2.0 million), additional General
Government expenses related to increased insurance premiums, retroactive CaiPERS costs related
to part-time employees and Children's Library expansion and improvements ($1.4 million).
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 $25.8 million at the end of the fiscal year.
The General Fund's fund balance decreased by $0.9 million during the FY 2016-17. Expenditures
exceeded revenues by $0.9 million, before other financing sources/uses. Financing sources and
uses netted an additional decrease in Fund Balance of $31,713. Further, after the net transfers
out, primarily for capital projects, the General Fund realized an increase in fund balance of $0.9
million. Primary revenue sources for this fund are sales tax, property tax and motor vehicle in lieu.
The General Fund is responsible for general services of the City. This includes public safety, public
works, community development, community services and administration. The largest expenditure is
for public safety, which was $5.2 million for FY 2016-17.
The Bicycle Transportation Account (BTA) fund has been used to fund bike lane improvements over
the last three years with grant revenues. Grant reimbursements in the amount of $197,244 are
anticipated to be received in FY 2017-18.
The Capital Project Fund funded a variety of capital improvements in the amount of $1.9 million this
year primarily in the area of street improvements and parking facilities.
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
$402 thousand.
General Fund Financial and Budgetary Highlights
The General Fund is the chief operating fund of the City. The fund balance reported a decrease of
$0.9 million at June 30, 2017. 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 22% of total General Fund expenditures, while total fund
balance represents 123% of that same amount.
Revenues: Actual revenue received was higher than the final budget by $94 thousand. This
increase was primarily due to property assessment related revenues of Property Tax and Motor
Vehicle In Lieu Tax.
Expenditures: Actual expenditures were lower than the final budget by $2.7 million largely due to
operations and multi-year projects that have yet to be completed (i.e., the General Plan Update and
8
City of Temple City
Management's Discussion and Analysis
June 30, 2017
Children's Library Expansion) and more conservative spending. Additional savings for this fiscal
year also resulted additional appropriations in the City Manager's operating budget for the Temple
City Library expansion. The Library is owned and operated by the County of Los Angeles however
the City has entered into an agreement to help fund the expansion efforts. A total of $1.95 million
was appropriated and committed, with the first installment of $450,000 paid to the County of Los
Angeles in FY 2016-17. An obligation of $1.5 million remains and is anticipated to be distributed to
the County of Los Angeles over the next two fiscal years.
Capital Assets and Debt Administration
Capital Assets. As shown in the following table, as of June 30, 2017, 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.
Capital Assets at Year-End
Governmental
Activities
Land and land rights $ 14,753,644
Construction in progress 505,315
Buildings and improvements 13,724,018
Furniture and equipment 1,060,650
Vehicles 646,562
Infrastructure 37,900,274
Subtotal 68,590,463
Less depreciation 16,866,325
Net total, capital assets $ 51,724,138
Other Long-term liabilities. Other long-term liabilities of the City are comprised of compensated
absences, net OPEB obligation, and net pension liability. The net OPEB obligation pertains to
unfunded annual required contributions accrued as of June 30, 2017. The net pension liability is
based on a projection of the City's long-term share of contributions to the pension plan relative to the
projected contributions of all participating employers, actuarially determined. A summary of other
long-term liabilities follows:
Net OPEB Obligation
Compensated absences
Net pension liability
Total
$
$
9
Governmental
Activities
4,122,014
265,794
6,925,534
11,313,342
City of Temple City
Management's Discussion and Analysis
June 30, 2017
Contacting the City's Financial Management
This financial report is designed to provide our citizens, taxpayers, customers, investors and
creditors with a general overview of the City's finances and to show the City's accountability for the
money it receives. There currently are not any known facts, decisions or condition that are expected
to have a significant effect on the financial position of the City. If you have any questions about this
report or need additional financial information, contact the Administrative Services Department, at
the City ofTemple City, 9701 Las Tunas Drive, Temple City, California. 91780, (626) 285-2171.
10
GOVERNMENT-WIDE
FINANCIAL STATEMENTS
CITY OF TEMPLE CITY, CALIFORNIA
Statement of Net Position
June 30,2017
ASSETS
Cash and investments
Accounts receivable
Interest receivable
Due from governmental agencies
Due from Successor Agency
Loans receivable
Prepaid items
Capital assets not being depreciated
Capital assets being depreciated, net
Total Assets
DEFERRED OUTFLOWS OF RESOURCES
Deferred amount related to pensions
LIABILITIES
Accounts payable
Accrued payroll
Deposits payable
Noncurrent liabilities:
Due within one year
Due in more than one year
Propotiionate share of net pension liability
Total Liabilities
DEFERRED INFLOWS OF RESCOURCES
Deferred amounts related to pensions
NET POSITION
Net investment in capital assets
Restricted for:
Education scholarship (nonspendable)
Public safety
Public works
Community services
Community development
Unrestricted
Total Net Position
See accompanying notes to financial statements.
Governmental
Activities
$ 26,835,935
304,398
22,347
879,762
25,380
1,233,185
480,576
15,258,959
36,465,179
81,505,721
1,904,700
1,706,264
42,586
I ,575,231
26,579
4,361,229
6,925 534
14,637,423
205,215
51,724,138
170,597
729
5,382,558
168,111
1,376,326
9 745 324
$ 68,567,783
II
CITY OF TEMPLE CITY, CALIFORNIA
Statement of Activities
Year Ended June 30,2017
Functions/Programs
Governmental Activities:
General government
Community development
Public safety
Public works
Community services
Total Governmental Activities
EXJ2CllSCS
$ 5,502,437
2,600,043
5,30 I ,481
4,813,770
3 416,338
$ 2!,634,069
General Revenues:
Taxes:
Property taxes
Pro![am Revenues
Charges Operating
fm Contributions
Services and Grants
$ I 14,326 $
\,845,202 726,858
825, 166 129,323
I ,038,514 3,496,161
597,7!8 131 600
$ 4 420,926 $ 4 483 942
Property taxes in lieu of motor vehicle fees
Sales taxes
Transient occupancy taxes
Franchise taxes
Other taxes
Investment income
State revenue-other
Other revenue
Total General Revenues
Change in Net Position
Net Position, Beginning of Year
Net Position, End of Year
See accompanying notes to financial statements.
12
Net (Expense)
Revenue and Change
in Net Position
Capital
Contributions Governmental
and Grants Activities
$ $ (5,388, Ill)
(27,983)
(4,346,992)
(279,095)
{2!687!020}
$ (12,729,201)
3,044,928
4,172,548
1,959,152
54,864
537,773
193,670
78,329
8,575
385 458
10 435 297
(2,293,904)
70861687
$ 68,567,783
FUND FINANCIAL STATEMENTS
Government Fund Financial Statements
Proprietary Fund Financial Statements
Fiduciary Fund Financial Statements
GOVERNMENTAL FUND
FINANCIAL STATEMENTS
CITY OF TEMPLE CITY, CALIFORNIA
Description of Major Funds
June 30,2017
Major· Governmental Funds
General Fund
The General Fund has been classified as a major fund and is used to account for all of the general revenues of the
City not specifically levied or collected for some special purpose, and for the expenditures related to the rendering
of general services by the City. The General Fund is used to account for all resources not required to be
accounted for in another fund.
Capital Improvement Fund
The Capital Improvement Fund is used to account for funds received from the various funds to finance various
capital improvements and projects.
Bicycle Transportation Account Fund
The Bicycle Transpotiation Account Fund is used to account for the grant revenues received from the Department
ofTranspotiation to patiially fund the City's Rosemead Boulevard Improvement Project.
Nonmajor Governmental Funds
Nonmajor governmental funds include the Special Revenue Funds and the Permanent Fund. Since total assets,
liabilities, revenues or expenditures of these funds do not exceed l 0 percent of total governmental funds, they do
not meet the criteria to be classified as major funds.
See accompanying notes to financial statements.
13
CITY OF TEMPLE CITY, CALIFORNIA
Governmental Funds
Balance Sheet
June 30, 2017
Special
Revenue Fund
Bicycle
Transpottation
General Account
ASSETS
Assets
Cash and investments $ 20,178,569 $
Accounts receivable 295,463
Interest receivable 22,244
Due from other funds 284,203
Due from other governments 522,354 197,244
Due from Successor Agency 25,380
Prepaid items 480,576
Loans receivable 59,875
Total Assets $ 21,868,664 $ 197,244
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities
Accounts payable $ 1,294,055 $
Accrued payroll 42,564
Due to other funds 197,244
Refundable deposits 1,575,231
Total Liabilities 2,911,850 197,244
Deferred Inflows of Resources
Unavailable revenues 59,875 197,244
Fund Balances
Nonspendable 480,576
Restricted
Committed 3,500,000
Assigned 11,513,004
Unassigned 3,403,359 (197,244)
Total Fund Balances 18,896,939 (197,244)
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $ 21,868,664 $ 197,244
See accompanying notes to financial statements.
14
CITY OF TEMPLE CITY, CALIFORNIA
Governmental Funds
Balance Sheet
June 30,2017
Capital
Projects
City-Wide
Capital
Improvements
$ 222,161
$ 222,161
$ 222,161
222,161
$ 222,161
$
$
$
$
Nonmajor
Governmental
Funds
6,032,838
8,935
103
160,164
1,173,310
7,375,350
190,048
22
86,959
277,029
170,597
6,927,724
7 098 321
7,375,350
$
$
$
$
See accompanying notes to financial statements.
Total
26,433,568
304,398
22,347
284,203
879,762
25,380
480,576
1,233,185
29,663,419
1,706,264
42,586
284,203
I ,575,231
3,608,284
257,119
651,173
6,927,724
3,500,000
11,513,004
3206115
25 798 016
29 663 419
15
CITY OF TEMPLE CITY, CALIFORNIA
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Position
June 30,2017
Fund balances of governmental funds
Amounts reported for governmental activities in the statement of net position
are different because:
Capital assets net of accumulated depreciation have not been included as financial
resources in governmental fund activity.
Capital assets
Accumulated depreciation
Long-term liabilities have not been included in the governmental funds
Compensated absences
Net OP EB obligation
Net pension liability
Certain accounts and intergovernmental receivables are not available to pay for
current-period expenditures and, therefore, are reflected as deferred inflows of
resources in the govenunental funds
Deferred outflows of resources related to pensions
DefeJTed inflows of resources related to pensions
The internal service fund is used by management to charge the costs
of self-insurance activities to individual funds. The cash and investments
of the internal service fund are included in governmental activities in
the statement of net position because it primarily services governmental
activities of the City,
Net position of governmental activities
See accompanying notes to financial statements.
16
$ 25,798,016
68,590,463
( 16,866,325)
(265,794)
(4, 122,014)
(6,925,534)
257,119
1,904,700
(205,215)
402 367
$ 68,567,783
CITY OF TEMPLE CITY, CALIFORNIA
Governmental Funds
Statement of Revenues, Expenditures and Changes in Fund Balances
Year Ended June 30,2017
Special
Revenue Fund
Bicycle
General Transpmiation
Fund Account
REVENUES
Taxes $ 5,790,387 $
Licenses and permits 1,772,186
Intergovernmental 4,172,548
Charges for services 1,414,108
Fines 813,356
Investment income 77,777
Rental income 87,460
Other 306 575
Total Revenues $ 14,434,397
EXPENDITURES
Current:
General government 4,502,828
Community development 2,235,626
Public safety 5,208,959
Public works 1,049,105
Community services 2,314,483
Capital outlay
Total Expenditures 15,311001
Excess (deficiency) of revenues
over (under) expenditures (876,604)
OTHER FINANCING SOURCES (USES)
Transfers in 487,333
Transfers out (519,046)
Total Other Financing Sources (Uses) (31,713)
Net Changes in Fund Balances (908,317)
Fund Balances, Beginning of Year 19 805,256 (197,244)
Fund Balances, End of Year $ 18 896,939 $ (197,244)
See accompanying notes to financial statements.
17
CITY OF TEMPLE CITY, CALIFORNIA
Governmental Funds
Statement of Revenues, Expenditures and Changes in Fund Balances
Year Ended June 30, 20I7
Capital
Project
City-Wide Nonrnajor
Capital Governmental
Improvement Funds Total
$ $ 1,373,978 $ 7,164,365
1,772,186
3,152,355 7,324,903
208,486 1,622,594
371 813,727
13,514 91,291
87,460
104 998 411 573
4 853 702 19 288 099
4,502,828
25,000 2,260,626
5,208,959
I ,506,889 2,555,994
683,865 2,998,348
I 90 I 562 I 901 562
I 901 562 2 215 754 19428317
(1,901,562) 2,637,948 (140,218)
1,901,562 194,691 2,583,586
(2,064,540) (2,583,586)
1 901 562 (I ,869,849)
768,099 (140,218)
6 330 222 25 938 234
$ $ 7 098 321 $ 25,798,016
See accompanying notes to financial statements.
18
CITY OF TEMPLE CITY, CALIFORNIA
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 30,2017
Net change in fund balances -total governmental funds
Amounts rep01ied for governmental activities in the statement of activities are
different because:
Governmental funds report capital outlays as expenditures. However, in the
statement of activities the cost of those assets is allocated over their estimated
useful lives and reported as depreciation expense. The effect of transactions
involving capital assets are as follows:
Depreciation expense
Purchases of capital assets recorded in governmental funds
The net effect of various transactions involving capital assets
(i.e. sales, retirements) is to decrease net position
Revenues that are measurable but not available are deferred in the governmental funds
under the modified accrual basis of accounting.
Expenses reported in the statement of activities which do not require the use
of current financial resources are not repmied as expenditures in goverrunental funds.
Increase in net OPEB obligation
Net difference between pension expense recorded on the government wide
statement of activities and contributions paid
Compensated absences
The internal service fund is not a governmental fund. However, it is used by
management to charge the net cost of self insurance activities to individual funds.
The net revenue of the internal service fund is repmied with government activities.
Change in net position of govern ental activities
See accompanying notes to financial statements.
19
$ (140,218)
(2,146,581)
1,932,884
(I ,206,069)
(500)
(480,682)
(265,493)
(39,311)
52 066
$ (2,293,904)
PROPRIETARY FUND
FINANCIAL STATEMENTS
CITY OF TEMPLE CITY, CALIFORNIA
Description of Proprietary Fund
Year Ended June 30, 2017
Internal Service Fund
Selflnsurance Fund
To account for goods and services relating to insurance premiums provided by one department to other
depmtments on a cost reimbursement basis.
See accompanying notes to financial statements.
20
CITY OF TEMPLE CITY, CALIFORNIA
Statement of Net Position
Proprietary Fund
June 30,2017
ASSETS
Current assets:
Cash and investments
NET POSITION
Unrestricted
Total Assets
Total Net Position
See accompanying notes to financial statements.
$
$
21
Self Insurance
Internal
Service Fund
402,367
402 367
402 367
402,367
CITY OF TEMPLE CITY, CALIFORNIA
Statement of Revenues, Expenses and Changes in Net Position
Propl'ietar·y Fund
Year Ended June 30,2017
Operating revenues:
Interfund changes
Total Operating Revenues
Changes in Net Position
Net Position -Beginning of the Year
Net Position -End of the Year
See accompanying notes to financial statements.
22
Self Insurance
Internal
Service Fund
$ 52,066
52,066
52,066
350,301
$ 402,367
CITY OF TEMPLE CITY, CALIFORNIA
Statement of Cash Flows
Propl'ietary Fund
Year Ended June 30,2017
Cash flows from operating activities:
Cash received for operating activities
Net cash provided by operating activities
Change in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
Reconciliation of operating income to net cash
provided by operating activities:
Operating income
Net cash provided by operating activities
Noncash investing. capital. and financing activities:
There were no significant noncash investing, capital, and financing activities during the year
ended June 30, 2017.
See accompany;ng notes to financial statements.
23
Self Insurance
lntemal
Service Fund
$ 52,066
52,066
52,066
350 301
$ 402,367
$ 52,066
$ 52,066
FIDUCIARY FUNDS
FINANCIAL STATEMENTS
CITY OF TEMPLE CITY, CALIFORNIA
Description of Fiduciary Fund
Year Ended June 30,2017
Successor Agency Private-Puroose 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 accompanying notes to financial statements.
24
CITY OF TEMPLE CITY, CALIFORNIA
Statement of Fiduciary Net Position
June 30, 2017
ASSETS
Cash and investments
Cash with fiscal agent
Total Assets
LIABILITIES
Accounts payable
Accrued interest payable
Due to City
Noncurrent liabilities:
Due within one year
Due in more than one year
Total Liabilities
FIDUCIARY NET POSITION (DEFICil)
Total Net Position (Deficit)
See accompanying notes to financial statements.
25
Successor Agency
Private-purpose
Trust Fund
$
$
1,258,107
32,664
1,290, 771
32,490
92,775
25,380
500,000
3 440 000
4,090,645
(2, 799,874)
CITY OF TEMPLE CITY, CALIFORNIA
Statement of Changes in Fiduciary Net Position
Year Ended June 30,2017
ADDITIONS
Tax increment
Total Additions
DEDUCTIONS
Administration
Professional fees
Pass-through fees
Interest expense and fiscal charges
Total Deductions
Changes in Net Position
Net Position-Beginning of Year
Net Position-End of Year
See accompanying notes to financial statements.
26
Successor Agency
Private-purpose
Trust Fund
$ 1,000 306
1,000,306
31,930
23,360
10,271
116,535
182,096
818,210
(3,618,084)
$ 12,799,874)
NOTES TO
FINANCIAL STATEMENTS
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended June 30,2017
NOTE I-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Description of the Reporting Entity
The City of Temple City, California (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-l 084 declaring itself a chat1er 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 govemment 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 cet1ain cases, other organizations are included as component units if the nature and significance of their
relationship with the City are such that their exclusion would cause the City's financial statements to be
misleading or incomplete.
All of the City's component units are considered to be blended component units because in all cases the City
Council serves as the governing board for each component unit. Blended component units, although legally
separate entities, are, in substance, part of the City's operations, therefore data from these units are repot1ed with
the interfund data of the primary government. Management of the City has operational responsibility for each
component unit, as it manages the activities of each component unit in a similar manner in which it manages other
of its own programs and activities. The following organization is considered to be a component unit of the City:
City of Temple City Housing Authority
The City of Temple City Housing Authority (Housing Authority) was established on November I, 2005, pursuant
to the State of California Health and Safety Code 34200 entitled, "Housing Authority Law." The purpose of the
Housing Authority is to provide safe and sanitary dwelling accommodations to persons of low income in the City.
Even though it is legally separated, it is repot1ed as if it is pat1 of the City because the City Council also serves as
the governing board of the Housing Authority and the City has operational responsibility of the Housing
Authority. No separate financial statements are issued for the Housing Authority.
Government-wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of activities)
repot1 information on all of the nonfiduciary activities of the primary government and its component units. For
the most part, the effect of interfund activity has been removed from these statements. The City's governmental
activities are supported by taxes and intergovernmental revenues.
27
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended June 30, 2017
NOTE 1-SUMMARY OF SIGNIFJCANT ACCOUNTING POLICIES (CONTINUED)
The statement of activities demonstrates the degree to which the direct expenses of a given function or segments
are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or
segment. Indirect expenses are allocated based on the annual cost allocation plan. Program revenues include: (I)
charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges
provided by a given function or segment and (2) grants and contributions that are restricted to meeting the
operational or capital requirements of a particular function or segment. Taxes and other items not properly
included among program revenues are repotted instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even
though the latter are excluded from the government-wide financial statements. Major individual governmental
funds are reported as a separate column in the fund financial statements.
Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government-wide financial statements are repotted using the economic resources measurement focus and the
accrual basis of accounting, as are the proprietary funds financial statements. Revenues are recorded when earned
and expenses are recorded when the liability is incurred, regardless of the timing of the related cash flows.
Fiduciary funds, including the private-purpose trust fund, use the economic resources measurement focus and the
accrual basis of accounting. The Agency fund has no measurement focus but utilizes the accrual basis of
accounting for reporting assets and liabilities. Propetty taxes are recognized as revenues in the fiscal year for
which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements
imposed by the provider have been met.
Amounts repotted as program revenues include: I) charges to customers or applicants for goods, services, or
privileges provided, 2) operating grants and contributions and 3) capital grants and contributions, including
special assessments.
Internally dedicated resources are repotted as general revenues rather than as program revenues. Likewise,
general revenues include all taxes.
Governmental funds financial statements are reported using the current financial resources measurement focus
and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and
available. Revenues are considered to be available when they are collectible within the current period. For this
purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current
fiscal period for propetty and sales tax, and 90 days for all other revenues. Expenditures generally are recorded
when the liability is incurred, as under accrual accounting. However, debt service expenditures, as well as
expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.
Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to
be susceptible to accrual; therefore, they have been recognized as revenues of the current fiscal period. Only the
portion of special assessments receivable due within the current fiscal period is considered to be susceptible to
accrual as revenue of the current period. All other revenue items are considered to be measurable and available
only when cash is received by the government.
28
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended June 30,2017
NOTE I-SUMMARY OF SIGNJFICANT ACCOUNTING POLICIES (CONTINUED)
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and
expenses generally result from providing services and producing and delivering goods in connection with a
proprietmy fund's principal ongoing operations. The principal operating revenue of the Internal Service Fund is
reimbursements relating to self-insurance. Operating expenses for the Internal Service Fund include the cost of
insurance premiums relating to the services provided. All revenues and expenses not meeting this definition are
repot1ed as nonoperating revenues and expenses.
Although the City's internal service fund is repot1ed as a proprietary fund in the fund financial statements, it is
incorporated into governmental activities in the government-wide financial statements.
Fund Types
The basic accounting and reporting entity is a "fund". A fund is defined as an independent fiscal and accounting
entity with a self-balancing set of accounts, recording resources, related liabilities, obligations, reserves and
equities segregated for the purpose of carrying out specific activities or attaining certain objectives in accordance
with special regulations, restrictions or limitations.
The accounting records of the City are organized on the basis of the various fund types as follows:
GOVERNMENTAL FUND TYPES:
General Fund
The General Fund is the general operating fund of the City. All general tax revenues and other receipts that are
not allocated by law or contractual agreement to some other fund are accounted for in this fund. Expenditures of
this fund include the general operating expenses and capital improvement costs which are not paid through other
funds.
Special Revenue Funds
The Special Revenue Funds are used to account for proceeds of specific revenue sources that are restricted by law
or administrative action for specific purposes.
Capital Projects Funds
Capital Projects Funds are used to account for financial resources to be used for the acquisition, construction or
improvement of major capital facilities and infrastructure.
Permanent Fund
The Permanent Fund is used to account for financial resources that are legally restricted to the extent that only
earnings, and not principal, may be used to support the City or its citizenry.
29
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended June 30, 2017
NOTE I-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Major Funds
The City reports the following major governmental funds:
• General Fund-To account for all of the general revenues of the City not specifically levied or collected
for some special purpose, and for the expenditures related to the rendering of general services by the City.
• Capita/Improvement Fund-To account for funds received from various special revenue funds to finance
capital improvements and projects.
• Bicycle Transportation Account Fund-To account for the grant revenues received from the Depa11ment
ofTransp011ation to pm1ially fund the City's Rosemead Boulevard Improvement Project.
PROPRIETARY FUND TYPE:
Internal Service Fund
The Internal Service Fund is used to account for goods and services relating to insurance premiums provided by
one depm1ment to other depa11ments on a cost reimbursement basis. The City's Internal Service Fund is the Self
Insurance Fund.
FIDUCIARY FUND TYPES:
Successor Agency Private-purpose Trust Fund
This fund is used to report the assets, liabilities and activities of the Successor Agency to the Dissolved Temple
City Community Redevelopment Agency. Unlike the limited reporting typically utilized for the Agency Fund, the
Private-purpose Trust Fund reports a Statement of Fiduciary Net Position and a Statement of Changes in Fiduciary
Net Position.
As a general rule, the effect of interfund activity has been eliminated from the government-wide financial
statements. Direct expenses have not been eliminated from the functional categories; internal payments have been
eliminated.
Cash Equivalents
For purposes of the statement of cash flows, cash equivalents are defined as sh011-term, highly liquid investments
that are both readily convertible to known amounts of cash or so near their maturity that they do not present
significant risk of changes in value because of changes in interest rates. Cash equivalents also represent the
proprietary funds' share in the cash and investment pool of the City.
Cash and Investments
Cash and investments are rep011ed in the accompanying balance sheet at fair value, except for ce11ain certificates
of deposit that are reported at cost because they are not transferable and they have terms that are not affected by
changes in market interest rates.
30
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended June 30, 2017
NOTE I-SUMMARYOF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Cash and Investments (Continued)
Changes in fair value that occur during a fiscal year are recognized as investment income reported for that fiscal
year. Investment income includes interest earnings, changes in fair value, and any gains or losses realized upon
the liquidation or sale of investments.
The City pools cash and investments of all funds, except for assets held by fiscal agents. Each fund's share in this
pool is displayed in the accompanying financial statements as cash and investments. Investment income earned
by the pooled investments is allocated to the various funds based on each fund's average cash and investment
balance, except for interest income (associated with funds not legally required to receive pooled investment
income) that has been assigned to and recorded as revenue of the general fund, as provided by California
Government Code Section 53647.
Governmental Accounting Standards Board ("GASB") Statement No. 72, Fair Value Measurements and
Application, provides guidance for determining a fair value measurement for reporting purposes, applying fair
value to investments, and disclosures related to a hierarchy established by generally accepted accounting
principles. The fair value hierarchy, which has three levels, is based on the valuation inputs used to measure fair
value: Level I inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other
observable inputs; Level 3 inputs are significant unobservable inputs.
Property Tax Calendar
The County of Los Angeles assesses, levies, and collects propet1y taxes for the City. Property taxes levied for the
year ended June 30, 2017 were due and payable in two installments on November I and February I and became
delinquent on December 1 O'h and April I 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:
Deliquent Date:
January 1
July I
First installment-November I
Second installment-February I
First installment -December I 0
Second installment-April I 0
Taxes are collected by Los Angeles County and are remitted to the City periodically. Dates and percentages are
as follows:
December 10
Januaty 15
April I 0
May 15
July 31
30% Advance
Collection No. I
10% Advance
Collection No. 2
Collection No. 3
31
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended June 30,2017
NOTE 1-SUMMARYOF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid
items in both the government-wide and fund financial statements. These are accounted for using the consumption
method, and accordingly, the expenditure is recorded in the period in which the goods or services are received.
Capital Assets
Capital assets (including infrastructure) are valued at cost where historical records are available and at an
estimated historical cost where no historical records exist. Donated capital assets are valued at their acquisition
value on the date received. Public domain (infrastructure) capital assets consist of streets, bridges, traffic signals,
street lights, bus shelters and sewers. Generally, the City capitalizes capital asset purchases in excess of $5,000
for general capital assets, $50,000 for sewers (infrastructure) and $10,000 for all other infrastructure and an
estimated useful life in excess of one year.
Capital assets used in operations are depreciated over their estimated useful lives using the straight-line method in
the government-wide financial statements. Provision for depreciation is charged as an expense against operations
and accumulated depreciation is reported on the statement of net position. The ranges of lives used for
depreciation purposes for each capital asset class are as follows:
Buildings & Improvements
Furniture and equipment
Vehicles
Infrastructure:
Streets
Bridges
Traffic signals
Deferred Outflows and Inflows of Resources
40 years
5-7 years
5 years
50-80 years
50 years
20 years
Under the modified accrual basis of accounting, it is not enough that revenue has been earned if it is to be
recognized as revenue of the current period. Revenue must also be susceptible to accrual; it must be both
measurable and available to finance expenditures of the current fiscal year. If assets are recognized in connection
with a transaction, but those assets are not yet available to finance expenditures of the current fiscal year, then the
assets must be offset by a corresponding deferred inflow of resources. This type of deferred inflow is unique to
governmental funds since it is tied to the modified accrual basis of accounting.
The City reports deferred outflows and inflows of resources. A deferred outflow of resources is a consumption of
net position or fund balance by the government that is applicable to a future reporting period. A deferred inflow
of resources represents an acquisition of net position or fund balance by the government that is applicable to a
future period.
The City repm1s deferred outflows and inflows of resources related to pensions on the government-wide statement
of net position, under full accrual basis of accounting. Refer to Note 9 for items identified as deferred inflows and
outflows related to pensions as of June 30, 2017.
32
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended June 30,2017
NOTE I-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Employee Leave Benefits
Vacation time begins to accumulate as of the first day of employment to a maximum of 240 hours for non-
represented employees and 320 hours for represented employees. Sick leave accumulates at the rate of 8 hours
per month without limit. Employees are not entitled to compensation for accrued sick time upon separation from
the City.
Claims and Judgments
The City records a liability for material litigation, judgments, and claims (including incurred but not reported
losses) when it is probable that an asset has been impaired or a material liability has been incurred prior to year-
end and the probable amount of loss (net of any insurance coverage) can be reasonably estimated.
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 (Ca!PERS) plans and additions to/deductions from the Plans' fiduciary net position have been
determined on the same basis as they are reported by Ca!PERS. 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.
Fund Balance
Government Accounting Standards Board (GASB) Statement No. 54, Fund Balance Reporting and Government
Fund-type Definitions, defines fund balance as the difference between the assets, liabilities and deferred inflows
repo11ed in the City's governmental funds. There are generally limitations on the purpose for which all or a
pm1ion 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 repot1ed in the annual financial
statements is categorized into five components whereby each component identifies the extent to which the City is
bound to honor constraints on the specific purposes for which amounts in the fund can be spent. The five
components of fund balance are as follows:
• Nonspendable: Resources that are I) not in spendable form, such as inventories, prepayments, long-term
receivables, or non-financial assets held for resale, or 2) required to be maintained intact such as an
endowment.
• Restricted: Resources that are subject to externally enforceable legal restrictions; these restrictions would
be either I) 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
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended June 30,2017
NOTE I-SUMMARY OF S/GNIFJCANT ACCOUNTING POLICIES (CONTINUED)
Fund Balance (Continued)
• Assigned: Resources that are constrained by the City's intent to be used for specific purposes, but that are
neither restricted nor committed. The City Council delegates the authority to assign fund balance to the
City Manager for purposes of reporting in the annual financial statements. This was established by the
governing body in the GASB 54 Fund Balance Policy resolution adopted and approved on May 15, 2012.
• Unassigned: Within the General Fund, the residual resources, either positive or negative, in excess of
what can be properly classified in one of the other four fund balance categories. Within all other
governmental funds, the negative residual resources in excess of what can be properly classified as
nonspendable, restricted, or committed.
The City considers the restricted fund balances to have been spent when an expenditure is incurred for purposes
for which both unrestricted and restricted fund balance is available. When expenditures are incurred for purposes
for which amounts in any of the unrestricted fund balance classifications could be used, it is the policy of the City
to reduce the committed amounts first, followed by assigned amounts, and then unassigned amounts.
Net Position
The government-wide financial statements utilize a net position presentation. Net position is categorized as net
investment in capital assets, restricted and unrestricted. When both restricted and unrestricted resources are
available for use, it is the government's policy to use restricted resources first, then unrestricted resources as they
are needed.
• Net investment in capital assets-This category groups all capital assets, including infrastructure, into one
component of net position. Accumulated depreciation and the outstanding balances of debt that are
attributable to the acquisition, construction or improvement of these assets reduce the balance of this
category.
• Restricted net position -This category presents external restnctwns imposed by creditors, grantors,
contributors, laws or regulations of other governments and restrictions imposed by law through
constitutional provisions or enabling legislation.
• Unrestricted net position-This category represents the City's net position, which is not restricted for any
project or other purpose
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the repot1ed amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial statements, and the repot1ed amounts of
revenues and expenses, during the reporting period. Actual results could differ from those estimates.
34
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended June 30,2017
NOTE I-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Pronouncements Effective in Future Years
GASB Statement No. 75-In June 2015, GASB issued Statement No. 75, Accounting and Financial Reporting
for Pas/employment Benefits Other than Pensions. The objective of the Statement is to replace the requirements
of GASB Statement No. 45. In addition, the Statement requires governments to repott a liability on the face of
the financial statements for the OPEB provided and requires governments to present more extensive note
disclosures and required supplementary information about their OPEB liabilities. The Statement is effective for
the periods beginning June 15,2017, or the 2017-2018 fiscal year. The City has not determined the effect of the
statement.
GASB Statement No. 81 -In March 2016, GASB issued Statement No. 81, Irrevocable Split-Interest
Agreements. The objective of the Statement is to improve financial reporting for irrevocable split-interest
agreements by providing recognition and measurement guidance for situations in which a government is a
beneficiary of the agreement. The Statement requires that a government that receives resources pursuant to an
irrevocable split-interest agreement recognize assets, liabilities, and deferred inflows of resources at the inception
of the agreement. Furthermore, the Statement requires that a government recognize assets representing its
beneficial interests in irrevocable split-interest agreements that are administered by a third patty, if the
government controls the present service capacity of the beneficial interests. The Statement requires that a
government recognize revenue when the resources become applicable to the reporting period. The Statement is
effective for the reporting periods beginning after December 15, 2016, or the 2017-2018 fiscal year. The City has
not determined the effect of the Statement.
GASB Statement No. 83 -In November 2016, GASB issued Statement No. 83, Certain Asset Retirement
Obligations. This Statement addresses accounting and financial reporting for certain asset retirement obligations
(AROs). An ARO is a legally enforceable liability associated with the retirement of a tangible capital asset. A
government that has legal obligations to perform future asset retirement activities related to its tangible capital
asset should recognize a liability based on the guidance in this Statement. This Statement also requires disclosure
of information about the nature of a government's ARO, the methods and assumptions used for the estimates of
the liabilities, and the estimated remaining useful life of the associated tangible capital assets. The requirements
of this Statement are effective for repotting periods beginning after June 15, 2018, or the 2018-19 fiscal year. The
City has not determined the effect of the Statement.
GASB Statement No. 84-In January 2017, GASB issued Statement No. 84, Fiduciary Activities. The objective
of this Statement is to improve guidance regarding the identification of fiduciary activities for accounting and
financial reporting purposes and how those activities should be reported. The requirements of this Statement are
effective for reporting periods beginning after December 15, 2018, or the 2019-20 fiscal year. The City has not
determined the effect of the Statement.
GASB Statement No. 85 -In March 2017, GASB issued Statement No. 85, Omnibus 2017. The objective of this
Statement is to address practice issues that have been identified during implementation and application of cettain
GASB Statements. This Statement addresses a variety of topics including issues related to blending component
units, goodwill, fair value measurement and application, and postemployment benefits (pensions and other
postemployment benefits [OPEB]). The Statement is effective for the reporting periods beginning after June 15,
2017, or 2017-2018 fiscal year. The City has not determined the effect of the Statement.
35
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended June 30, 2017
NOTE I -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
GASB Statement No. 86 -In May 2017, GASB issued Statement No. 86, Certain Debt Extinguishment Issues.
The primary objective of this Statement is to improve consistency in accounting and financial reporting for in-
substance defeasance of debt by providing guidance for transactions in which cash and other monetary assets
acquired with only existing resources-resources other than the proceeds of refunding debt-are placed in an
irrevocable trust for the sole purpose of extinguishing debt. This Statement also improves accounting and
financial reporting for prepaid insurance on debt that is extinguished and notes to financial statements for debt
that is defeased in substance. The Statement is effective for the repot1ing periods beginning after June 15,2017,
or 2017-2018 fiscal year. The City has not determined the effect of the Statement.
GASB Statement No. 87 -ln June 2017, GASB issued Statement No. 87, Leases. The objective of this
Statement is to better meet the information needs of financial statement users by improving accounting and
financial reporting for leases by governments. This Statement increases the usefulness of governments' financial
statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified
as operating leases and recognized as inflows of resources or outflows of resources based on the payment
provisions of the contract. It establishes a single model for lease accounting based on the foundational principle
that leases are financings of the right to use an underlying asset. Under this Statement, a lessee is required to
recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease
receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information
about governments' leasing activities. The Statement is effective for the reporting periods beginning after
December 15, 2019, or 2020-2021 fiscal year. The City has not determined the effect of the Statement.
NOTE 2 -STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
Deficit Fund Balances
Funds that have a deficit fund balance at June 30, 2017, are as follows:
Fund
Major Funds:
Bicycle Transpot1ation Account Fund $
Deficit Fund
Balance
(197,244)
The Bicycle Transpot1ation Account Fund deficit will be eliminated when the intergovernmental receivables are
collected in future periods.
36
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended June 30, 2017
NOTE 2 -STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY (CONTINUED)
Excess of Expenditures Over Appropriations
Expenditures for the year ended June 30, 2017, exceeded appropriations in the following funds:
Fund
Non-major Funds:
Camellia Permanent Fund
Citizens Option for Public Safety (COPS)
Air Quality Improvement Fund
Environmental Protection Agency Fund
NOTE 3-CASH AND INVESTMENTS
$
Final Budget
100,000
14,270
$
Expenditures
260
131,255
20,020
112,445
$
Excess
260
31,255
5,750
112,445
Cash and investments at June 30, 2017 are classified in the accompanying financial statements as follows:
Statement of Net Position:
Cash and investments
Fiduciary Fund:
Cash and investments
Cash with fiscal agent
Total Cash and Investments
Cash and investments as of June 30, 20 I 7 consist of the following:
Cash on hand
Deposits with financial institutions
Investments
Total Cash and Investments
37
$ 26,835,935
1,258, I 07
32,664
$ 28, 126,706
$ 2,100
I ,851,553
26,273,053
$ 28, 126,706
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended June 30,2017
NOTE 3-CASH AND INVESTMENTS (CONTINUED)
Investments Authorized by the California Government Code and the City's Investment Policy
The accompanying table below identifies the investment types that are authorized for the City by the California
Government Code (or the City's investment policy, where more restrictive). The table also identifies certain
provisions of the California Government Code (or the City's investment policy, where more restrictive) that
address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of
debt proceeds held by the bond trustee that are governed by the provisions of debt agreements of the City, rather
than the general provisions of the California Govemment Code or the City's investment policy.
Authorized Maximum Maximum
Investment Types by City's Maximum Percentage Investment
Authorized by State Law Policy Maturity of Portfolio In One Issuer
Local Agency Bonds No 5 years None None
U.S. Treasury Obligations Yes 5 years None None
U.S. Agency Securities Yes 5 years None None
State of California Obligation No 5 years None None
Local Agency Obligation No 5 years None None
Banker•s Acceptances* No 180 days 40% 30%
Commercial Paper** No 270 days 25% 10%
Cetiificates of Deposit Yes 5 years 30o/o None
Repurchase Agreements No I year None None
Reverse Repurchase Agreements*** No 92 days 20o/o of base value None
Medium-Tetm Notes Yes 5 years 30% None
Mutual Funds**** No N/A 20% 10%
Money Market Mutual Funds Yes N/A 20% None
Collateralized Bank Deposits Yes 5 years None None
Mmtgage Pass-Through Securities No 5 years 20% None
County Pooled Investment Funds Yes N/A None None
Local Agency Investment Fund (LAIF) Yes N/A None None
* No more than 30% of swplus fLmds may be invested in Bankers Acceptances of any one commercial bank.
**
***
****
Commercial paper issuers must be U.S. Corporations with $500 million plus in assets. Purchases may not represent
more than 10% of outstanding paper of an issuing corporation.
Reverse RepW'chase Agreements must be made with primary dealers of the Federal Resetve Bank of New York and
the securities used for the agreements must have been held by the issuer for at least 30 days.
No more than 10% of the City's sw-plus funds may be invested in any one mutual fund.
38
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended June 30,2017
NOTE 3-CASH AND INVESTMENTS (CONTINUED)
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an
investment. Generally, the longer the maturity of an investment the greater the sensitivity of its fair value to
changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by
purchasing a combination of shmier-term and longer-term investments and by timing cash flows from maturities
so that a portion of the pmifolio is maturing or coming close to maturity over time as necessary to provide the
cash flow and liquidity needed for operations.
Information about the sensitivity of the fair values of the City's investments, and those held by bond trustees, to
market interest rate fluctuations is provided by the following table that shows the distribution of the City's
investments by maturity:
Remaining Maturing ( in Months)
12 Months or 12 to 60
Total Less Months
State Investment Pool (LAIF) $ 2,646,589 $ 2,646,589 $
Los Angeles County Investment Pool 5,611,215 5,611,215
Medium-Term Notes 2,000,199 1,496,884 503,315
Federal Agency Securities 8,590,363 499,403 8,090,960
Certificates of Deposit 7,413,599 668,359 6,745,240
Money Market Funds 11 088 11,088
$ 26,273,053 $ 10 933 538 $ 15 339 515
The City can make withdrawals from LAIF on demand. As of June 30, the weighted average maturity of the
investments contained in the LAIF investment pool is approximately 8 months and for the Los Angeles County
Investment Pool is approximately 672 days.
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the
investment. This is measured by the assignment of a rating by a nationally recognized statistical rating
organization. Presented below is the minimum rating required by (where applicable) the California Government
Code, the City's investment policy, or debt agreements, and the actual rating, as repmted by Standard & Poor's, as
of year-end for each investment type:
Minimum Rating as of June 30, 2017
Legal Not
Amount Rating AAAIAA+ AA-IA Rated
State Investment Pool (LAIF) $ 5,611,215 N/A $ $ $ 5,611,215
Los Angeles County Investment Pool 2,646,589 N/A 2,646,589
Medium-Term Notes 2,000,199 A 1,004,485 995,714
Federal Agency Securities 8,590,363 A 8,590,363
Certificates of Deposit 7,413,599 N/A 7,413,599
Money Market Funds II 088 A II 088
$ 26 273 053 $ 9 594 848 $ I 006 802 $ 15,671 403
39
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended June 30,2017
NOTE 3-CASH AND INVESTMENTS (CONTINUED)
Concentration of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer
beyond that stipulated by the California Government Code. As of June 30, 2017, the investments in any one
issuer (other than U.S. Treasury Securities, mutual funds, and external investment pools) that represent 5 percent
or more of the City's total investments are as follows:
Issuer
Federal Home Loan M011gage Corporation
Federal Home Loan Bank
Custodial Credit Risl<
Investment Type
Federal Agency Securities
Federal Agency Securities
Amount
$ 4,650,898
I ,480,900
Percent of
Portfolio
18%
6%
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a
government will not be able to recover its deposits or will not be able to recover collateral securities that are in the
possession of an outside party. The custodial credit risk for investments is the risk that: in the event of the failure
of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its
investment or collateral securities that are in the possession of another party. The California Government Code
and the City's investment policy do not contain legal or policy requirements that would limit the exposure to
custodial credit risk for deposits or investments, other than the following provision for deposits: The California
Government Code requires that a financial institution secure deposits made by state or local govemmental units by
pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so
waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at
least 110 percent of the total amount deposited by the public agencies. California law also allows financial
institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150 percent of the
secured public deposits.
40
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended June 30,2017
NOTE 3-CASH AND INVESTMENTS (CONTINUED)
Fair Value Classifications
Fair value measurements are categorized based on the valuation inputs used to measure fair value: Level I inputs
are quoted prices in active markets for identical asset assets; Level 2 inputs are significant other observable
inputs; Level 3 inputs are significant unobservable inputs. Investments categorized as Level 2 are valued using
the market approach and quoted market prices.
Investments' fair value measurements are as follows as of June 30, 2017:
Investment Type Fair Value Level I Leve12 Leve13
Investments:
Medium-Term Notes $ 2,000,199 $ $ 2,000,199 $
Federal Agency Securities 8,590,363 8,590,363
Certificates of Deposit 7 253,599 7,253,599
Total Leveled Investments 17844,161 17,844,161
Investments:
Los Angeles County Investment Pool 2,646,589
State Investment Pool (LAJF) 5,611,215
Non-negotiable Certificates of Deposit 160,000
Money Market Funds 11,088
Total Investment Portfolio $ 26,273,053
Investments in LA IF, LACPIF, and money market funds based on Net Asset Value (NA V) are uncategorized as
deposits and withdrawals are made on the basis of$! and not fair value.
Investment in State Investment Pool
The City is a voluntary 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 repotted 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 p01tfolio). The balance available for withdrawal is based on the accounting records maintained by
LAIF, which are recorded on an am01tized cost basis.
Investment in County Investment Pool
The Los Angeles County Pooled Investment Fund (LACPIF) is a pooled investment fund program governed by
the Los Angeles County Board of Supervisors and administered by the Los Angeles County Treasurer and Tax
Collector. Investments in the LACPIF are highly liquid, as deposits and withdrawals can be made at any time
without penalty. The LACPIF does not impose any maximum investment limit. The fair value of the City's
investment in this pool is rep01ted in the accompanying financial statements at amounts based upon the City's
prorated share of the fair value provided by the LACPIF for the entire LACPIF portfolio (in relation to the
amottized cost of that portfolio). The balance available for withdrawal is based on the accounting records
maintained by the LACPIF, which are recorded on an amottized cost basis.
41
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended June 30,2017
NOTE 4-INTERFUND ACTIVITY
The following represents the interfund activity of the City for the year ended June 30, 2017:
Due From/To Other Funds:
Due from (receivable fund)
General Fund
General Fund
Due to (payable fund)
Bicycle Transportation Account Fund
Non-major Governmental Funds
Amount
$ 197,244
86,959
$ 284,203
The General Fund receivable from the Bicycle Transportation Account (BTA) fund of $197,244 represents monies
advanced to the BTA fund for the Bicycle Master Plan Implementation project. The amount will be paid back to
the General Fund once funding is received from Caltrans. Additionally, the General Fund receivable from non-
major governmental funds represents the elimination of negative cash balances in the funds.
Transfers To/From Other Funds:
Transfer In
General Fund
Capital Improvement Fund
Nonmajor Governmental Funds
Total
Transfers Out
Nonmajor Governmental Funds
General Fund
Nonmajor Govemmental Funds
Nonmajor Governmental Funds
Amount
$ 487,333
$
519,046
I ,382,516
194 691
2,583,586
Transfers to/from other funds are based on the budget funding sources that the City Council approved. The City
transfers monies from various funds to its City-wide Capital Improvement Fund and the General Fund for the
payment of ce1tain capital projects such as Temple City Blvd Parking Lot, Repaving of Streets per Re-Assessment
Pavement Management Plan, Live Oak Walking and Jogging Path and Temple City Veterans Monument. The
City also transfers monies between various funds for projects related to trees and parkways and sewer line
upgrades.
NOTE 5 -AMOUNTS OWED FROM SUCCESSOR AGENCY
Due from Successor Agency
In 2015, the City's General Fund supp01ted the redevelopment activities of the former Redevelopment Agency in
the amount of$1,224,293. A portion of this amount was paid back to the City in 2016. During the fiscal year, the
City received a remaining payment of $624,293 from the Successor Agency. As of June 30, 2017, the amount
owed to the City is $25,380.
42
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended June 30,2017
NOTE 6-LOANS RECEIVABLE
Loans receivable consist of the following at June 30, 2017:
Descri tion
General Fund:
Low and Moderate Income Housing
Temple City Chamber of Commerce
Community Development Block Grant:
Home Improvement Loans
Total
Amount
$ 56,775 (A)
3,100 (B)
59,875
1,173 310 (C)
$ I ,233,185
(A) During the 2008~09 fiscal year, the City issued three housing loans in the amount of $56,775. These loans are zero interest loans and
can be defen·ed until the secured prope1ty is sold or changes title.
(B) On April 4, 1995, the City issued a loan to the Temple City Chamber of Commerce in the amount of $13,600 with an annual payment
amount of $500.
(C) The City uses Community Development Block Grant funds to issue loans to low and moderate income horneovmers for repairs of
building and zoning code violations. These loans are low interest loans and can be deferred until the secured property is sold or
changes title. The maximum amount of each loan is $25,000.
43
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended June 30,2017
NOTE 7-CAPITAL ASSETS
Capital asset governmental activity for the fiscal year ended June 30, 2017 was as follows:
Balance Balance
Governmental Activities: lui~ I, 2016 Additions Deletions June 30 2017
Capital assets not being depreciated:
Land $ 3,309,376 $ 1,029,328 $ $ 4,338,704
Land improvements 1,839,413 109,586 1,948,999
Construction in progress 23,187,754 505,315 23,187,754 505,315
Infrastructure:
Land rights relating to streets 8 465 941 8 465,941
Total 36,802 484 1,644,229 23 187,754 15,258 959
Capital assets being depreciated:
Buildings 8,816,220 1,446,856 7,369,364
Improvements 5,534,014 820,640 6,354,654
Furniture, fixtures and equipment 985,119 75,531 1,060,650
Vehicles 1,284,045 637,483 646,562
Infrastructure:
Streets 13,087,649 22,437,841 441,905 35,083,585
Traffic signals 1,190,394 668,292 1,858,686
Bridges 958 003 958,003
Total 31 855,444 24,002,304 2,526,244 53,331,504
Less accumulated depreciation for:
Buildings 2,466,335 178,656 102,253 2,542,738
Improvements 2,387,219 511,557 45,167 2,853,609
Furniture, fixtures and equipment 849,232 60,041 909,273
Vehicles I, 139,754 2,808 626,791 515,771
Infrastructure:
Streets 6,535,313 1,244,591 20,069 7,759,835
Traffic signals I, 178,168 148,928 1,327,096
Bridges 958 003 958,003
Total IS 514,024 2,146,581 794,280 16,866,325
Capital assets being depreciated, net 16,341,420 21,855,723 I 731 964 36,465 179
Capital assets, net $ 53 143 904 $ 23 499 952 $ 24 919 718 $ 51,724,138
Depreciation expense is charged to operations, as follows:
General government $ 284,124
Community development 188,421
Public safety 9,262
Public works 1,431,536
Community services 233,238
Total Depreciation Expense -Governmental Activities $ 2,146 581
44
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended June 30,2017
NOTE 8-LONG-TERM LIABILITIES
The following is a summary of changes in the City's long-term liabilities for the year ended June 30, 2017:
Balance at Balance Due Within
Jul;t I, 2016 Additions Reductions June 30, 2017 One Year
Net OPEB obligation $ 3,641,332 $ 655,000 $ (174,318) $ 4,122,014 $
Compensated absences 226 483 40,025 (714) 265,794 26,579
Total $ 3,867,815 $ 695,025 $ (175,032) $ 4,387,808 $ 26,579
For the other postemployment benefits and compensated absences, the general fund has been used to liquidate
such amounts.
NOTE 9-DEFINED BENEFIT PENSION PLAN
Plan Description -All qualified permanent and probationary employees are eligible to participate in the City's
Miscellaneous Employee Pension Plan (Plan), cost-sharing multiple employer defined benefit pension plan
administered by the California Public Employees' Retirement System (CalPERS). Benefit provisions under the
Plan are established by State statute and the City's resolution. CalPERS issues publicly available reports that
include a full description of the pension plan regarding benefit provisions, assumptions and membership
information that can be found on the CalPERS website.
Classic participants (defined as eligible pat1icipants prior to January 1, 2013) are required to contribute
8 percent of their annual covered salary. New or Public Employees' Pension Reform Act of 2013 (PEPRA)
participants (defined as eligible employees brought into CalPERS membership for the first time on or after
January I, 2013) contribute at least half the normal cost rate as determined by CalPERS. The City contributes the
remaining amounts necessary to fund the benefits for its employees, using the actuarial basis adopted by the
CalPERS Board of Administration.
Benefits Provided-CalPERS provides service retirement and disability benefits, annual cost of living adjustments
and death benefits to Plan members, who must be public employees and beneficiaries. Benefits are based on years
of credited service, equal to one year of full time employment. Members with five years of total service are
eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability
benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957
Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are
applied as specified by the California Public Employees' Retirement Law.
45
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended June 30,2017
NOTE 9-DEFINED BENEFIT PENSION PLAN (CONTINUED)
The Plans' provisions and benefits in effect at June 30, 2017 are summarized as follows:
Hire Date
Benefit formula
Benefit vesting schedule
Benefit payments
Retirement age
Monthly benefits, as a % of eligible compensation
Required employee contribution rates
Required employer contribution rates
Miscellaneous Pian
Classic PEPRA
Prior to
January I, 2013
2.5%@55
5 years of service
monthly for life
50-55
2.0% to 2.7%
8%
11.00%
On or after
January I, 2013
2%@62
5 years of service
monthly for life
52-67
1.0% to 2.5%
6.31%
6.93%
Contributions-Section 20814(c) of the California Public Employees' Retirement Law requires that the employer
contribution rates for all public employers are determined on an annual basis by the actuaty and shall be effective
on July I" following notice of a change in the rate. Funding contributions for the Plan are determined annually on
an actuarial basis as of June 30 by CalPERS. Beginning in fiscal year 2016, Ca!PERS collects employer
contributions for the Plan as a percentage of payroll for the normal cost portion as noted in the rates above and as
a dollar amount for contributions toward the unfunded liability. The dollar amounts are billed on a monthly basis.
The City's contributions to the pension plan were $629,063 for the year ended June 30, 2017.
Pension Liubilities, Pension Expenses uml Deferred Outjlowsllnjlows of Resources Rehtted to Pensions -As of
June 30,2017, the City reported a net pension liability for its proportionate share of the net pension liability of the
Miscellaneous Plan in the amount of$6,925,534.
The City's net pension liability for the Plan was measured as the proportionate share of the net pension liability of
the collective cost-sharing plan. The City's net pension liability was measured as of June 30, 2016 and the total
pension liability used to calculate the net pension liability was determined by an actuarial valuation as of June 30,
2015, rolled forward to June 30, 2016 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 plan relative to the
projected contributions of all participating employers, actuarially determined. The City's proportionate share of
the net pension liability for the Plan as of June 30, 2015 and 2016 was as follows:
Propot1ion-June 30, 2015
Proportion-June 30, 2016
Change - Increase (Decrease)
46
0.08021%
0.08004%
-0.00017%
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended June 30, 2017
NOTE 9-DEFINED BENEFIT PENSION PLAN (CONTINUED)
For the year ended June 30,2017, the City recognized pension expense of$894,556. At June 30, 2017, the City
reported deferred outflows of resources and deferred inflows of resources related to pensions from the following
sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date $ 629,063 $
Differences between expected and actual experience 19,882 4,556
Changes in assumptions 188,104
Changes in proportion and difference between City's
contributions and proportionate share of contributions 276,734 12,555
Net difference between projected and actual earnings
on pension plan investments 979,021
Total $ 1,904,700 $ 205 215
The amount of $629,063 reported as deferred outflows of resources related to contributions subsequent to the
measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2018.
Other amounts repot1ed as deferred outflows of resources and deferred inflows of resources related to pensions
will be recognized as pension expense as follows:
Year Ended
June 30,
2018 $ 182,544
2019 186,450
2020 447,850
2021 253,578
$ 1,070,422
Actuarial Assumptions -The total pension liabilities in the June 30, 2015 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
Miscellaneous
June 30, 2015
June 30, 2016
Entry-Age Normal Cost Method
7.65%
2.75%
3%
Varies by Entry Age and Service
7.5% (I)
Derived using CaiPERS' Membership Data for all Funds
(I) Net of pension plan investment expenses, including Inflation
All other actuarial assumptions used in the June 30, 2015, valuation were based on the results of an actuarial
experience study for the period from 1997 to 2011, including updates to salary increase, mot1ality and retirement
rates. The Experience Study repot1 can be obtained at CalPERS' website.
47
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended June 30,2017
NOTE 9 -DEFINED BENEFIT PENSION PLAN (CONTINUED)
Discount Rate -The discount rate used to measure the total pension liability was 7.65 percent. To determine
whether the municipal bond rate should be used in the calculation of the discount rate for each plan, CalPERS
stress tested plans that would most likely result in a discount rate that would be different from the actuarially
assumed discount rate. The tests revealed the assets would not run out. Therefore, the current 7.65 percent
discount rate is appropriate and the use of the municipal bond rate calculation is not deemed necessary. The long-
term expected discount rate of 7.65 percent is applied to all plans in the Public Employees' Retirement Fund
(PERF). The cash flows used in the testing were developed assuming that both members and employers will
make their required contributions on time and as scheduled in all future years. The stress test results are presented
in a detailed report called "GASB Crossover Testing Report" that can be obtained at CalPERS website under the
GASB 68 section.
The long-term expected rate of return on pension plan investments was determined using a building-block method
in which expected future real rates of return (expected returns, net of pension plan investment expense and
inflation) are developed for each major asset class.
In determining the long-term expected rate of return, staff took into account both short-term and long-term market
return expectations as well as the expected pension fund (PERF) cash flows. Taking into account historical
returns of all the Public Employees Retirement Funds' asset classes (which includes the agent plan and two cost-
sharing plans or PERF A, B, and C funds), expected compound (geometric) returns were calculated over the
short-term (first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected
nominal returns for both shott-term and long-term, the present value of benefits was calculated for each PERF
fund. The expected rate of return was set by calculating the single equivalent expected retum that arrived at the
same present value of benefits for cash flows as the one calculated using both short-term and long-term returns.
The expected rate of return was then set equal to the single equivalent rate calculated above and rounded down to
the nearest one quarter of one percent.
The table below reflects long-term expected real rate of return by asset class. The rate of return was calculated
using the capital market assumptions applied to determine the discount rate and asset allocation.
Global Equity
Global Fixed Income
Inflation Sensitive
Private Equity
Real Estate
Asset Class
Infrastructure and Forestland
Liquidity
Total
(a) An expected inflation of 2.5% used for this period
(b) An expected inflation of 3.0% used for this period
New Strategic
Allocation
51.0%
20.0%
6.0%
10.0%
10.0%
2.0%
1.0%
100.0%
48
Real Return Real Return
Years I -10 (a) Years 11 +(b)
5.25% 5.71%
0.99% 2.43%
0.45% 3.36%
6.83% 6.95%
4.50% 5.13%
4.50% 5.09%
-55.0% -1.05%
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended June 30, 2017
NOTE 9-DEFINED BENEFIT PENSION PLAN (CONTINUED)
Sensitivity of the Proportionate Share of the Net Pension Liability to Clumges in the Discount Rate -The
following presents the City's propottionate share of the net pension liability, calculated using the discount rate of
7.65 percent, 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 !-percentage point lower (6.65 percent), or !-percentage point higher (8.65
percent), than the current rate:
City's proportionate share of the net pension liability
Discount Rate M l%
(6.65%)
$ 10,536,892
Current Discount Rate
(7.65%)
$ 6,925,534
Discount Rate +I%
(8.65%)
$ 3,952,364
Pension Plan Fiduciary Net Position-Detailed information about the Plan's fiduciary net position is available in
the separately issued Ca!PERS financial repotts.
NOTE 10-LIABILITY, PROPERTY AND WORKERS' COMPENSATION PROTECTION
Description of Self-Insurance Pool Pursuant to Joint Powers Agreement
The City is a member of the California Joint Powers Insurance Authority ("CJPIA"). The CJPIA is composed of
117 California public entities and is organized under a joint powers agreement pursuant to California Government
Code §6500 et seq. The purpose of the CJPIA is to arrange and administer programs for the pooling of self-
insured losses, to purchase excess insurance or reinsurance, and to arrange for group purchased insurance for
property and other lines of coverage. The California JPIA began covering claims of its members in 1978. Each
member government has an elected official as its representative on the Board of Directors. The Board operates
through a nine-member Executive Committee.
Self-Insurance Programs of the CJPIA
Each member pays an annual contribution at the beginning of the coverage period. A retrospective adjustment is
then conducted annually thereafter, for coverage years 2012-13 and prior. Coverage years 2013-14 and forward
are not subject to routine annual retrospective adjustment. The total funding requirement for self-insurance
programs is based on an actuarial analysis. Costs are allocated to individual agencies based on payroll and claims
history, relative to other members of the risk-sharing pool.
Primary Liability Program
Claims are pooled separately between police and general government exposures. (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.
49
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended June 30, 2017
NOTE 10-LIABILITY, PROPERTY AND WORKERS' COMPENSATION PROTECTION (CONTINUED)
For 2016-17, the CJPlA's pooled retention is $2 million per occurrence, with reinsurance to $20 million, and
excess insurance to $50 million. The CJPlA's reinsurance contracts are subject to the following additional pooled
retentions: (a) $2.5 million annual aggregate deductible in the $3 million in excess of$2 million layer, and (b) $3
million annual aggregate deductible in the $5 million in excess of $10 million layer. There is a third annual
aggregate deductible in the amount of $2.5 million in the $5 million in excess of $5 million layer, however it is
fully covered under a separate policy and therefore not retained by the CJPIA. The overall coverage limit for each
member, including all layers of coverage, is $50 million per occurrence. Costs of covered claims for subsidence
losses have a sub-limit of $30 million per occurrence.
Workers' Compensation Program
Claims are pooled separately between public safety (police and fire) and general government exposures, (I) The
payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is
determined for each member, which establishes the weight applied to payroll and the weight applied to losses
within the formula. (2) The first layer of losses includes incurred costs up to $50,000 for each occurrence and is
evaluated as a percentage of the pool's total incurred costs within the first layer. (3) The second layer of losses
includes incurred costs from $50,000 to $100,000 for each occurrence and is evaluated as a percentage of the
pool's total incurred costs within the second layer. (4) Incurred costs from $100,000 to statutory limits are
distributed based on the outcome of cost allocation within the first and second loss layers.
For 2016-17, the CJPIA'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 fi·om $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 CJPIA. The
policy covers sudden and gradual pollution of scheduled property, streets, and storm drains owned by the City.
Coverage is on a claims-made basis. There is a $50,000 deductible, The CJPIA has an aggregate limit of $50
million for the 3-year period from July I, 2014 through July I, 2017. Each member of the CJPIA has a $10
million sub-limit during the 3-year policy term.
Property Insurance
The City participates in the all-risk property protection program of the CJPIA. This insurance protection is
underwritten by several insurance companies. City's property is currently insured according to a schedule of
covered property submitted by the City to the CJPIA. City's prope11y currently has all-risk property insurance
protection in the amount of $43,131,768. There is a $5,000 deductible per occurrence except for non-emergency
vehicle insurance which has a $2,500 deductible.
Earthquake and Flood Insurance
The City purchases earthquake and flood insurance on a portion of its property. The em1hquake insurance is part
of the property protection insurance program of the CJPIA. City's property currently has em1hquake protection in
the amount of $10,317,953. There is a deductible of 5% per unit of value with a minimum deductible of
$100,000.
50
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year· Ended June 30,2017
NOTE 10-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 CJPIA.
Special Event Tenant User Liabilitv Insurance
The City further protects against liability damages by requiring tenant users of cer1ain property to purchase low-
cost tenant user liability insurance for certain activities on agency proper1y. The insurance premium is paid by the
tenant user and is paid to the City according to a schedule. The City then pays for the insurance. The insurance is
facilitated by the CJPIA.
Adequacy of Protection
During the past three fiscal years, none of the above programs of protection experienced settlements or judgments
that exceeded pooled or insured coverage. There were also no significant reductions in pooled or insured liability
coverage in 2016-17.
CJPIA premiums for fiscal year 2017 were $561,953. Since claims are paid by the CJPIA and, in effect, charged
back to the City via future insurance deposits, no long-term liability for claims has been recorded.
NOTE 11-OTHER POSTEMPLOYMENT BENEFIT PLAN
Benefits Plan Description
The City of Temple City Retiree Health care Plan ("Plan") is a multiple employer defined benefit healthcare 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 percent 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 I 00 percent of the cost of dental and vision insurance premiums of the retired employees. Expenditures for
post-retirement health care benefits for fiscal year 2017 amounted to $174,318 which included 28 participants.
Funding Policy
The plan provisions and contribution requirements of plan members and the City are established and may be
amended by the City Council. The contribution required to be made under City Council requirements is based on
a pay-as-you-go basis (i.e., as premiums become due).
On September 4, 2012, the City adopted Resolution No. 12-4845 authorizing participation in the Public Agency
Retirement Services Post-Retirement Health Care Plan Trust Program and pre-funding of $!.0 million to the
Trust.
51
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended June 30,2017
NOTE II-OTHER POSTEMPLOYMENT BENEFIT PLAN (CONTINUED)
Annual OPEB Cost and Net OPEB Obligation
The City's annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual required
contribution (ARC) of the employer. The ARC represents a level of funding that, if paid on an ongoing basis, is
projected to cover normal cost each year and am01tize any unfunded actuarial liabilities (or funding excess) over a
period not to exceed thirty years.
The following table shows the components of the City's annual OPEB cost for the current fiscal year, the amount
contributed to the plan, and changes in the City's net OPEB obligation:
Annual required contribution
Interest on net OPEB obligation
Adjustment to annual required contribution
Annual OPEB cost
Contributions
Increase in net OPEB obligation
Net OPEB obligation-beginning of year
Net OPEB obligation-end of year
$ 684,000
I 59,000
(188,000)
655,000
(I 74,318)
480,682
3,641,332
$ 4,122,014
The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the net OPEB
obligation for fiscal year ended June 30, 2017, and the two preceding years were as follows:
Percentage of
Fiscal Year Annual Contribution Annual OPEB Cost Net OPEB
Ended OPEB Cost Made Contributed Obligation
6/30/2015 $ 601,000 $ 161,253 26.83% $ 3,136,066
6/30/2016 668,000 162,734 24.36% 3,641,332
6/30/2017 655,000 174,318 26.61% 4,122,014
Funded Status and Funding Progress
The funded status of the plan as of June 30,2014, the plan's most recent actuarial valuation date, was as follows:
Actuarial accrued liability (AAL)
Actuarial value of plan assets (A VA)
Unfunded actuarial accrued liability (UAAL)
Funded ratio (AVA/AAL)
Covered payroll (active plan participants)
UAAL as a percentage of covered payroll
52
$ 5,726,000
1,124,000
4,602,000
19.6%
2,761,000
166.7%
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended June 30,2017
NOTE 11-OTHER POSTEMPLOYMENT BENEFIT PLAN (CONTINUED)
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about
the probability of occurrence of events far into the future. Examples include assumptions about future
employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan
and the annual required contributions of the employer are subject to continual revision as actual results are
compared with past expectations and new estimates are made about the future. The schedule of funding progress,
presented in the required supplementary information section, presents multi-year trend information about whether
the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities
for the benefits.
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood
by the employer and the plan members) and include the types of benefits provided at the time of each valuation
and the historical pattern of sharing of benefit costs between employer and plan members to that point. The
actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term
volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective
of the calculations.
Actuarial Methods and Assumptions
The actuarial cost method used for determining the benefit obligations is the Entry Age Nmmal Cost Method.
The actuarial assumptions included a 4.60 percent investment rate of return, which is the assumed rate of the
expected long-term investment returns on plan assets calculated based on the funded level of the plan at the
valuation date, and annual cost trend rate of7.5 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
percent per year and merit increases are based on the CalPERS 1997-2011 Experience Study. The amortization
period is a 24-year fixed (closed) period for the UAAL as of June 30,2014 for the 2016-17 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.
53
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended June 30,2017
NOTE 12-FUND BALANCE CLASSIFICATIONS
Special
Revenue Fund
Bicycle Nonmajor
Transportation Governmental
General Account Funds Totals
Nonspendable
Prepaid items $ 480,576 $ $ $ 480,576
Educational scholarship 170 597 170 597
Subtotal 480,576 170,597 651,173
Restricted
Community development 1,376,326 1,376,326
Public safety 729 729
Community services 168,111 168,111
Public works 5 382 558 5 382 558
Subtotal 6,927,724 6,927,724
Committed
Emergency/disasters 50,000 50,000
Liquidity 2,000,000 2,000,000
Local economic uncertainty 1 450 000 1 450,000
Subtotal 3,500,000 3,500,000
Assigned
Fleet management 400,000 400,000
Facilities management 3,540,000 3,540,000
Technology replacement 53,392 53,392
Economic development 3,027,973 3,027,973
Opportunities for oneRtime expenditures 4 491 639 4491639
Subtotal 11,513,004 11,513,004
Unassigned 3 403 359 [197,244) 3,206,115
Total $ 18 896 939 $ [197,244) $ 7,098,321 $ 25,798,016
On June 20, 2017, the City reaffirmed the committed and assigned fund balance classifications for the General
Fund for financial statement purposes at June 30, 2017, in accordance with the City's adopted GASB 54 Fund
Balance Policy, as follow:
Committed
Assigned
$3,500,000
$11,513,004
Any remaining fund balance at the close of the fiscal year will be designated as Unassigned.
NOTE 13-CONTINGENT LIABILITIES/COMMITMENTS
Various claims and suits have been filed against the City in the normal course of business. Although the outcome
of these matters is not presently determinable in the opinion of legal counsel, the resolution of these matters will
not have a material adverse effect on the financial condition of the City.
During the current fiscal year, the City agreed to contribute toward the County of Los Angeles Library expansion.
The City's total commitment is $1,950,000, with $1,500,000 remaining as of June 30, 2017.
54
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended June 30,2017
NOTE 14 -SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY
The accompanying financial statements also include the Private-purpose Trust Fund for the Successor Agency to
the City's former Redevelopment Agency (Successor Agency). The City, as the Successor Agency, serves in a
fiduciary capacity, as custodian for the assets and to wind down the affairs of the former Redevelopment Agency.
Its assets are held in trust for the benefit of the taxing entities within the former Redevelopment Agency's
boundaries and as such, are not available for the use of the City.
Disclosures related to the certain assets and long-term liabilities of the Successor Agency are as follows:
Agency's Payable to the City
As of June 30, 2017, the Successor Agency owes the City $25,380 for expenses by the former redevelopment
agency to support redevelopment activities.
Information about the Outstanding Bonds of the Successor Agency Trust Fund
TAX ALLOCATION REFUNDING BONDS, SERIES 2016
On March 31, 2016, the Successor Agency issued $2,150,000 Tax-exempt Tax Allocation Refunding Bonds and
$2,240,000 Taxable Tax Allocation Refunding Bonds ("Bonds") for a total of $4,390,000. Proceeds from the sale
of the Bonds will be used to refund the Refunding Bonds Series 2005. The Series 2005 bonds were originally
issued to refund the Temple City Financing Authority, 1993 Revenue Bonds for the Rosemead Boulevard
Redevelopment Project. The refunding resulted in an economic gain of $275,962 with a percentage savings of
refunded bonds of 5.67% and debt service savings of $1,154,885. The principal of the Bonds is payable
commencing September I, 2016 through September I, 2024 and interest payable is payable semiannually each
March and September beginning September I, 2016. Interest rates are 2.40 percent fixed on the Tax-Exempt
bonds and 3.72 percent on the Taxable bonds. The principal amount outstanding at June 30, 2017 is $3,940,000.
The annual requirements for repayment of principal and interest on the bonds payable outstanding as of June 30,
2017 are as follows:
Year Ending
June 30, PrinciQal
2018 $ 500,000
2019 515,000
2020 530,000
2021 545,000
2022 565,000
2023-2025 1,285,000
Total $ 3,940,000
Deficit Net Position
Interest
$ 112,749
96,741
80,241
63,249
45,672
46 029
$ 444,681
Total
$ 612,749
611,741
610,241
608,249
610,672
I 331 029
$ 4,384,681
As of June 30,2017, the Successor Agency Private-Purpose Trust Fund had a deficit net position of$2,799,874.
This will be reduced with future receipt of distributions from the Redevelopment Property Tax Trust Fund from
the County.
55
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF TEMPLE CITY, CALIFORNIA
Budget and Actual Comparison
General Fund
General Fund-This fund has been classified as a major fund and is used to account for all of the general revenues
of the City not specifically levied or collected for some special purpose, and for the expenditures related to the
rendering of general services by the City. The General Fund is used to account for all resources not required to be
accounted for in another fund. The budget-to-actual comparison for this fund has been presented in the
accompanying financial statements as required supplementary information.
Special Revenue Funds
The Special Revenue Funds are used to account for specific revenues that are legally restricted to expenditure for
a particular purpose. The following fund has been classified as a major fund and budget-to-actual comparison for
the fund has been presented in the accompanying financial statements as required supplementary information.
Bicycle Transportation Account -This fund is used to account for the grant revenues received from the
Department of Transportation to partially fund the City's Rosemead Boulevard Improvement Project. The fund
did not have activity during the year.
56
CITY OF TEMPLE CITY, CALIFORNIA
Budgetary Comparison Schedule
General Fund
Year Ended June 30,2017
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts {Ne~tive}
REVENUES
Taxes:
Real estate transfer tax $ 200,000 $ 200,000 $ 193,670 $ (6,330)
Sales and use tax 1,957,000 1,957,000 1,959,152 2,152
Franchise tax 600,000 600,000 537,773 (62,227)
Transient occupancy tax 55,000 55,000 54,864 (136)
Property tax allocation 3 015 000 3 015 000 3 044 928 29 928
Total taxes 5 827 000 5 827 000 5 790 387 (36,613)
Licenses and permits:
Business license fees 200,000 200,000 199,014 (986)
Building permit fees 725,000 890,000 979,057 89,057
Parking permit fees 75,000 75,000 78,448 3,448
Encroachment permit fees 200,000 232,000 255,987 23,987
Animal license fees 50,000 50,000 42,206 (7,794)
Vehicle impound fees 20,000 20,000 11,439 (8,561)
Temp parking penn it fees 145,000 145,000 135,950 (9,050)
Code enforcement fees 50 000 65 000 70 085 5 085
Total licenses and permits I 465 000 I 677 000 I 772 186 95 186
Intergovernmental:
In lieu vehicle license fees 4 000 000 4 000 000 4172548 172 548
Total intergovernmental 4 000 000 4,000 000 4172548 172 548
Charges for services:
Shared maintenance charges 4,170 4,170 4,170
Zoning fees 200,000 200,000 143,972 (56,028)
Recreation fees 630,000 630,000 597,718 (32,282)
Plan check fees 550,000 550,000 535,624 (14,376)
Facility rental fees 73,000 73,000 58,090 (14,910)
PW /Engineering fees 50 000 50 000 74 534 24,534
Total charges for services I 507 170 I 507 170 I 414 108 (93,062)
Fines, forfeitures and penalties:
Court fines 500 000 891 000 813356 (77,644)
Investment income:
Interest-Securities 115,000 115,000 57,814 (57, 186)
Interest-Others 32,892 32,892
Interest -CD 85,000 85,000 202,064 117,064
Change in value of investment (214,993) (214,993)
Total investment income 200 000 200 000 77777 (122,223)
Other:
AB939 reimbursement 15,000 15,000 8,575 (6,425)
Recyclable revenue 35,000 35,000 26,762 (8,238)
Rental income 65,000 65,000 87,460 22,460
Other reimbursement 100,000 100,000 206,971 106,971
Donation 12,000 12,000 12,000
Sundry 1,000 1,000 10,201 9,201
CRNLLD reimbursement 10 000 10 000 42 066 32 066
Total other income 238 000 238 000 394 035 156 035
Total revenues 13 737 170 14340170 14 434 397 94 227
57
CITY OF TEMPLE CITY, CALIFORNIA
Budgetary Comparison Schedule
Gener·al Fund
Year Ended June 30,2017
Variance with
Final Budget-
Budgeted Amounts Actual Positive
Original Final Amounts {Ne~tive}
EXPENDITURES
General government
City council $ 178,915 $ 178,915 $ 154,319 $ 24,596
City manager 836,395 3,086,395 1,476,280 1,610,115
City clerk 410,700 410,700 362,909 47,791
Accounting 611,510 611,510 613,737 (2,227)
City attorney 382,000 382,000 353,163 28,837
Support services 136,600 136,600 136,319 281
Insurance benefits 836,585 I ,045,285 !,085,765 (40,480)
Purchasing 260 730 296 595 320 336 [23,741)
Total general government 3 653 435 6 148 000 4 502 828 1645172
Community development:
Planning I ,603,655 I ,609,655 937,139 672,516
Housing 43,100 439,600 309,608 129,992
Building 875910 957 410 988 879 (31 ,469)
Total community development 2 522 665 3 006 665 2 235 626 771 039
Public safety:
Law enforcement 4,146,475 4,271,475 4,245,302 26,173
Trame engineering 40,000 40,000 15,469 24,531
Animal control 240,045 240,045 233,580 6,465
Emergency services 113,075 113,075 103,959 9,116
Community preservation 379,860 335,860 282,411 53,449
Parking administration 409 885 412 985 328 238 84 747
Total public safety 5 329 340 5 413 440 5 208 959 204 481
Public works:
Parking facilities 167,080 167,080 153,799 13,281
Administration & engineering 474,550 480,550 477,833 2,717
Solid waste management 10,115 8,575 1,540
General government buildings 237,070 352,270 369,455 (17, 185)
Graffiti abatements 50 000 50 000 39 443 10 557
Total public works 928 700 1060015 I 049,105 10 910
Community services:
Recreation/human services I ,229,455 I ,263,885 1,209,668 54,217
Parks. maintenance/facilities I 041 140 I 095 840 I 104 815 [8,975)
Total community services 2 270 595 2 359 725 2314483 45 242
Total expenditures 14 704 735 17 987 845 15 311 001 2,676 844
Excess (defiCiency) of revenue
over expenditures (967,565) (3,647,675) [876,604) 2771071
OTHER FINANCING SOURCES (USES)
Transfers in 515,880 634,880 487,333 (147,547)
Transfers out (I, 110,930) (I, 161,930) [519,046) 642 884
Total other financing sources (uses) (595,050) (527,050) [31,713) 495 337
Net change in fund balances (I ,562,615) (4,174,725) (908,317) 3,266,408
Fund Bfllance at Beginning of Year 14 685 835 14986410 19 805 256 4 818,846
Fund Balance at End of Year $ 13 123 220 $ 10,811 685 $ 18896939 $ 8 085 254
58
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Budgetary Comparison Schedule
Year Ended June 30,2017
NOTE 1-BUDGETS AND BUDGETARY ACCOUNTING
The City adopts an annual budget prepared on the modified accrual basis for all of its governmental funds. The
City Manager or his designee is authorized to transfer budgeted amounts between the accounts of any program.
Revisions that alter the total appropriations of any program or fund are approved by the City Council. Prior year
appropriations lapse unless they are appropriated through the formal budget process. Expenditures may not
legally exceed appropriations at fund level. Reserves for encumbrances are not recorded by the City.
59
CITY OF TEMPLE CITY, CALIFORNIA
Schedule of Funding Progress
Other Postemployment Benefits (OPEB)
Year Ended June 30,2017
Actuarial
Actuarial Accrued
Actuarial Value of Liability
Valuation Assets (A VA) (AAL)
Date a b
6130/2009 $ $ 7,850,000
6/3012011 6,481,000
613012014 1,124,000 5,726,000
$
UAAL as a
Unfunded Annual Percentage of
AAL Funded Covered Covered
(UAAL) Ratio Payroll Payroll
(b-a) (alb) c (b-a)lc)
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%
60
CITY OF TEMPLE CITY, CALIFORNIA
Schedule of Proportionate Share of the Net Pension Liability
Last Ten Years*
Year Ended June 30,2017
2017
Proportion of the net pension liability 0.08004%
Proportionate share of the net pension liability $ 6,925,534
Covered payroll 2,952,148
Proportionate share of the net pension liability as a
percentage of covered payroll 234.59%
PIan fiduciary net position as a percentage of the
total pension liability 74.06%
Notes to Schedule:
2016
0.08021%
$ 5,505,224
2,785,261
197.66%
78.40%
* Fiscal year 20 15 was the I st year of implementation, therefore, only three years are shown.
61
2015
0.06544%
$ 4,072,235
2,820,374
144.39%
79.82%
CITY OF TEMPLE CITY, CALIFORNIA
Schedule of Contributions
Last Ten Year·s*
Year Ended June 30,2017
Actuarial!y detemined contributions
Contdbutions in relation to the actuarially determined contributions
Contribution deficiency (excess)
Covered payroll
Contributions as a percentage of covered payroll
Notes to Schedule:
2017
$ 629,063
629,063
$
$ 3,324,680
18.92%
* Fiscal year 2015 was the I st year of implementation, therefore, only three years are shown.
62
2016 2015
$ 556,380 $ 444,577
556 380 444,577
$ $
$2,952,148 $ 2,785,261
18.85% 15.96%
SUPPLEMENTARY INFORMATION
MAJOR CAPITAL
PROJECTS FUND
CITY OF TEMPLE CITY, CALIFORNIA
Description of Major Capital Pr·ojects Fund
June 30,2017
Capital Improvement Fund
The Capital Improvement Fund is used to account for funds received from the various special revenue funds to
finance various capital improvements and projects.
63
CITY OF TEMPLE CITY, CALIFORNIA
Budgetary Comparison Schedule
Capital Improvement Fund
Year Ended June 30,2017
Variance with
Final Budget-
Budgeted Amounts Actual Positive
01·iginal Final Amounts {Negative}
EXPENDITURES
Capital outlay:
Parks-maintenance/facilities $ 298,000 $ 559,660 $ 525,004 $ 34,656
Traffic signal maintenance 2,369,480 2,369,480 27,051 2,342,429
Street maintenance I ,966,500 1,966,500 859,531 1' 106,969
General government buildings 64,500 95,000 11,712 83,288
Parking facilities 550 000 550 000 478 264 71 736
Total Capital Outlay 5 248 480 5 540 640 I 901,562 3 639,078
Total Expenditures 5 248 480 5 540 640 I 901 562 3,639 078
OTHER FINANCING SOURCES (USES)
Transfers in 5 248 480 5,540 640 I 901 562 (3,639,078)
Total Other Financing Sources (Uses) 5 248 480 5 540 640 I 901 562 (3,639,078)
Net Change in fund balances
Fund Balance at Beginning of Year
Fund Balance at End of Year $ $ $ $
64
NONMAJOR
GOVERNMENTAL FUNDS
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajor Governmental Funds
Combining Balance Sheet
June 30,2017
Special Camelia
Revenue Permanent
Funds Fund Totals
ASSETS
Cash and investments $ 5,862,344 $ 170,494 $ 6,032,838
Accounts receivable 8,935 8,935
Interest receivable 103 103
Loans receivable 1,173,310 1,173,310
Due from other governments 160,164 160,164
Total Assets $ 7 204,753 $ 170,597 $ 7,375,350
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $ 190,048 $ $ 190,048
Accrued payroll 22 22
Due to other funds 86,959 86,959
Total Liabilities 277,029 277,029
Fund balances:
Nonspendable 170,597 170,597
Restricted 6,927,724 6,927,724
Total Fund Balances 6 927,724 170,597 7,098,321
Total Liabilities and
Fund Balances $ 7,204,753 $ 170,597 $ 7,375,350
65
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Year Ended June 30,2017
Special Camelia
Revenue Permanent
Funds Fund Totals
REVENUES
Taxes $ 1,373,978 $ $ 1,373,978
Intergovernmental 3,152,355 3,152,355
Charges for services 208,486 208,486
Fines 371 371
Investment income 12,962 552 13,514
Other 104,998 104,998
Total Revenues 4,853,150 552 4, 853,702
EXPENDITURES
Current:
Community development 25,000 25,000
Public works 1,506,889 1,506,889
Community services 683,605 260 683 865
Total Expenditures 2,215 494 260 2,215 754
Excess (Deficiency) of Revenues
Over (Under) Expenditures 2,637 656 292 2,637,948
OTHER FINANCING SOURCES (USES)
Transfers in 194,691 194,691
Transfers out {2,064,540) {2,064,540)
Total Other Financing Sources (Uses) {1,869,849) {1,869,849)
Net Change in Fund Balances 767,807 292 768,099
Fund Balances at Beginning of Year 6 159,917 170 305 6,330,222
Fund Balances at End of Year $ 6,927,724 $ 170,597 $ 7,098,321
66
NONMAJOR
SPECIAL REVENUE FUNDS
CITY OF TEMPLE CITY, CALIFORNIA
Description of Nonmajor Special Revenue Funds
June 30,2017
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.
Citizens Option for Public Safety (COPS) Fund -To account for the revenues received from the California
Depatiment of Justice to 'be restricted to enhance existing law enforcement services.
Public Transportation -Proposition A Fund -To account for the City's share of additional sales tax collected in
the County of Los Angeles as a result of Proposition A. The fund is restricted to finance public transpmiation
projects.
Public Transportation -Proposition C Fund -To account for the City's share of additional sales tax collected in
the County of Los Angeles as a result of Proposition C. The fund is restricted to finance public transpotiation
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 propetiies.
CDBG-To account for resources in managing the different programs under the Community Development Block
Grant funded by the U.S. Department of Housing and Urban Development.
Air Quality Improvement District Fund-To account for the City's share of automobile registration fees collected
from the State and distributed to the City by the South Coast Air Quality Management District. The funds are
used to improve transportation systems and reduce the reliance on private vehicles.
Measure R Fund -These are similar to local return type funds to be used for traffic relief and transportation
upgrades citywide over the next 30 years. These funds may be for projects such as pothole repairs, major street
resurfacing, left-turn signals, bikeways, pedestrian improvements, streetscapes, traffic signal synchronization,
local transit services and programs.
Parking Concession Fund -To account for revenues and expenditures related to the operation of the parking
concession agreements.
Affordable Housing Fee Fund-An optional development impact fee used on City approved affordable housing
programs geared towards assisting low-income households (e.g. 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.
67
CITY OF TEMPLE CITY, CALIFORNIA
Description of Non major Special Revenue Funds
June 30,2017
HSIP Fund -The Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users
(SAFETEA-LU), which was signed into law on August I 0, 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 Upgrade Traffic
Signals on Temple City Blvd between El Camino Real Avenue and Ellis Lane, and other safety improvements
projects.
1992/I 996 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, I 992 and November 5, 1996 to benefit proper1y
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.
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.
Public Ar1 Fee Fund -An optional development impact fee used to procure, commission, install and/or maintain
ar1 in a public place. The impact fee could be identified for an individual art piece per the development
agreement. If the development agreement does not specify a par1icular art piece for the impact fee, it shall be
deposited into the City's Public Ar1 Fund.
Environmental Protection Agency Fund -To account for the grant revenues received from the Federal
Environmental Protection Agency to par1ially fund the City's Rosemead Boulevard Improvement Project. There
is no accompanying budget and actual schedule for this fund as there was no adopted budget.
5'h District Excess Grant Fund-To account for grant revenues received from County of Los Angeles 5'h District
to fund Live Oak Park Walking Jogging Path Project.
68
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajor Special Revenue Funds
Combining Balance Sheet
June 30,2017
ASSETS
Cash and investments
Accounts receivable
Loans receivable
Due from other governments
Total Assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Accrued payroll
Due to other funds
Total Liabilities
Fund balances:
Restricted
Total Fund Balances
Total Liabilities and
Fund Balances
Traffic
Safety
$
$
$
$
69
Public Public
Transportation Transportation
COPS PrOQ A PrOQ C
$ $ 922,649 $ 1,007,843
$ $ 922,649 $ 1,007,843
$ $ 59,697 $
59 697
862,952 I 007 843
862 952 I 007 843
$ $ 922,649 $ I 007,843
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajor Special Revenue Funds
Combining Balance Sheet
June 30, 2017
State
Used Oil Gas Tax
$ 6,578 $ 68,985 $
$ 6,578 $ 68 985 $
$ $ 49,727 $
49 727
6,578 19 258
6 578 19 258
$ 6,578 $ 68 985 $
Asset
Seizure
729
729
729
729
729
Air Quality
Improvement
CDBG District MeasureR
$ $ 184,579 $ 898,590
I, 173,310
78 024 II 859
$ 1,251,334 $ 196,438 $ 898 590
$ $ $
78,024
78 024
I 173,310 196 438 898 590
I 173 310 196 438 898 590
$ 1,251,334 $ 196,438 $ 898,590
70
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajor Special Revenue Funds
Combining Balance Sheet
June 30,2017
ASSETS
Cash and investments
Accounts receivable
Loans receivable
Due from other governments
Total Assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Accrued payroll
Due to other funds
Total Liabilities
Fund balances:
Restricted
Total Fund Balances
Total Liabilities and
Fund Balances
$
$
$
$
Parking
Concession
10,000
10 000
10,000
10 000
10,000
71
Affordable Sewer
Housing Reconstruction HSIP
$ 157,000 $ 829,171 $ 68,176
905
$ !57 000 $ 829,171 $ 69,081
$ $ $
157 000 829 171 69,081
I 57 000 829 171 69 081
$ 157 000 $ 829,171 $ 69 081
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajor Special Revenue Funds
Combining Balance Sheet
June 30,2017
Surface
Transportation 1992/1996
Program -Local Park Bond
$ $
8,935
$ 8,935 $
$ $
8 935
8 935
$ 8,935 $
State
Recycling
$ 1,111
$ !,Ill
$
I Ill
I Ill
$ I Ill
Lighting and
Park Landscape
Acquisition District Public Art Fee
$ 65,873 $ 1,521,640 $ 119,420
69 376
$ 65 873 $ I 591,016 $ 119,420
$ $ 80,624 $
22
80,646
65 873 1510370 119 420
65 873 1510370 119 420
$ 65,873 $ 1,591 016 $ 119,420
72
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajor Special Revenue Funds
Combining Balance Sheet
June 30,2017
ASSETS
Cash and investments
Accounts receivable
Loans receivable
Due from other governments
Total Assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Accrued payroll
Due to other funds
Total Liabilities
Fund balances:
Restricted
Total Fund Balances
Total Liabilities and
Fund Balances
Environmental
Protection
Agency
$
$
$
$
73
5th District
Excess
Grant Total
$ $ 5,862,344
8,935
1,173,310
160 164
$ $ 7 204,753
$ $ 190,048
22
86 959
277 029
6 927,724
6 927 724
$ $ 7,204,753
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajor Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Year· Ended June 30,2017
Public
Traffic Transportation
Safet~ COPS Pror A
REVENUES
Taxes $ $ $
Intergovernmental 129,323 661,923
Charges for services 87,486
Fines 371
Investment income 944
Others
T a tal Revenues 371 129 323 750 353
EXPENDITURES
Current:
Community development
Public works
Community services 683,605
Total Expenditures 683,605
Excess (Deficiency) of Revenues
Over (Under) Expenditures 371 129 323 66 748
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out (483) ( 131 ,255)
Total Other Financing Sources (Uses) (483) (131,255)
Net Change in Fund Balances (112) (1,932) 66,748
Fund Balances at Beginning of Year 112 1,932 796,204
Fund Balances at End of Year $ $ $ 862,952
74
Public
Transportation
ProrC
$
547,945
484
548 429
548,429
548,429
459,414
$ I ,007 843
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajor Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Year Ended June 30,2017
Air Quality
State Asset Improvement
Used Oil Gas Tax Seizure CDBG District
$ $ $ $ $
10,149 693,582 288,161 46,654
380
104 998
10 149 693 582 393 159 47 034
25,000
423,277
423 277 25 000
10,149 270 305 368,159 47 034
(8,575) (88,246) (288,161) (20,020)
(8,575) (88,246) (288, 161) (20,020)
1,574 182,059 79,998 27,014
5 004 (162,801) 729 I 093,312 169,424
$ 6,578 $ 19 258 $ 729 $ 1,173,310 $ 196,438
75
MeasureR
$
411,885
6,127
418,012
418,012
(845,158)
(845, 158)
(427, 146)
I 325,736
$ 898,590
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajor Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Year Ended June 30,2017
Parking Affordable Sewer
Concession Housing Reconstruction
REVENUES
Taxes $ $ $
Intergovernmental
Charges for services 82,500
Fines
Investment income
Others
Total Revenues 82,500
EXPENDITURES
Current:
Community development
Public works
Community services
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures 82,500
OTHER FINANCING SOURCES (USES)
Transfers in 112,445
Transfers out
Total Other Financing Sources (Uses) 112,445
Net Change in Fund Balances 194,945
Fund Balances at Beginning of Year 10 000 157 000 634,226
Fund Balances at End of Year $ 10,000 $ 157 000 $ 829,171
76
HSIP
$
87,198
87 198
87,198
(18, 117)
(18,117)
69,081
$ 69,081
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajor Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Year Ended June 30,2017
Surface Lighting and
Transportation 199211996 State Park Landscape
Program -Local Park Bond Recycling Acquisition District
$ $ $ $ $ 1,373,978
8,935 26,600
38,500
5,027
8 935 26 600 38 500 I 379 005
1,083,612
1,083,612
8 935 26 600 38,500 295 393
82,246
(8,935) (26,600) (260,496) (16,049)
(8,935) (26,600) (260,496) 66,197
(221,996) 361,590
I, Ill 287 869 I 148 780
$ $ $ I Ill $ 65 873 $ 1510370
77
Public Art Fee
$
119 420
$ 119 420
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajor Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Year Ended June 30,2017
Environmental 5th District
Protection Excess
Agenc~ Grant Total
REVENUES
Taxes $ $ $ I ,373,978
Intergovernmental 240,000 3,152,355
Charges for services 208,486
Fines 371
Investment income 12,962
Others 104,998
Total Revenues 240,000 4,853,150
EXPENDITURES
Current:
Community development 25,000
Public works 1,506,889
Community services 683,605
Total Expenditures 2215,494
Excess (Deficiency) of Revenues
Over (Under) Expenditures 240 000 2,637 656
OTHER FINANCING SOURCES (USES)
Transfers in 194,691
Transfers out (112,445) (240,000) (2,064,540)
Total Other Financing Sources (Uses) (112,445) (240,000) (I ,869,849)
Net Change in Fund Balances (I 12,445) 767,807
Fund Balances at Beginning of Year 112,445 6,159,917
Fund Balances at End of Year $ $ $ 6,927,724
78
SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL
CITY OF TEMPLE CITY, CALIFORNIA
Budgetary Comparison Schedule
Permanent Fund
Year Ended June 30,2017
REVENUES
Use of money and property
Total Revenues
EXPENDITURES
Current:
Community services
Total Expenditures
Net Change in fund balances
Fund Balance at Beginning of Year
Fund Balance at End of Year
Budgeted Amounts
Original Final
$ 1,000 $ 1,000
1,000 I 000
$ I 000 $ I 000
79
Variance with
Final Budget-
Actual Positive
Amounts (Negative)
$ 552 $ (448)
552 (448)
260 (260)
260 (260)
292 $ (708)
170,305
$ 170 597
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajor Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in
Fund Balance-Budget and Actual
Traffic Safety Fund
Year Ended June 30,2017
Budgeted Amounts
Original Final
REVENUES
Fines $ 25 000 $ 25 000
Total Revenues 25,000 25 000
OTHER FINANCING SOURCES (USES)
Transfers out [25,000) [25,000)
Total Other Financing Sources (Uses) (25,000) (25,000)
Net Change in fund balances $ $
Fund Balance at Beginning of Year
Fund Balance at End of Year
80
Variance with
Final Budget -
Actual Positive
Amounts [Ne!l"tive)
$ 371 $ (24,629)
371 (24,629)
[483) 24,517
[483) 24,517
(112) $ 0 12)
112
$
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajor Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in
Fund Balance-Budget and Actual
COPS Fund
Year Ended June 30,2017
Budgeted Amounts
Original Final
REVENUES
Intergovernmental $ 100,000 $ 100 000
Total Revenues 100,000 100 000
OTHER FINANCING SOURCES (USES)
Transfers out (100,000) (100,000)
Total Other Financing Sources (Uses) (100,000) (100,000)
Net Change in fund balances $ $
Fund Balance at Beginning of Year
Fund Balance at End of Year
81
Variance with
Final Budget-
Actual Positive
Amounts (Negative)
$ 129 323 $ 29 323
129 323 29 323
(131,255) (31 ,255)
(131,255) (31,255)
(1,932) $ (I ,932)
1,932
$
CITY OF TEMPLE CITY, CALIFORNIA
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, 2017
Budgeted Amounts
Original Final
REVENUES
Intergovernmental $ 640,000 $ 640,000
Charges for services 110,120 110,120
Use of money and property I 000 1,000
Total Revenues 751 120 751 120
EXPENDITURES
Current:
Community services 852 830 852,830
Total Expenditures 852 830 852,830
Net Change in fund balances $ (I 0 I, 71 0) $ (101,710)
Fund Balance at Beginning of Year
Fund Balance at End of Year
82
Variance with
Final Budget-
Actual Positive
Amounts (Negative)
$ 661,923 $ 21,923
87,486 (22,634)
944 (56)
750,353 (767)
683,605 169 225
683,605 169,225
66,748 $ 168,458
796 204
$ 862,952
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajo•· Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in
Fund Balance-Budget and Actual
Public Transportation-Prop C Fund
Year Ended June 30,2017
Budgeted Amounts
Original Final
REVENUES
Intergovernmental $ 540,000 $ 540,000
Use of money and property 100 100
Total Revenues 540 100 540 100
OTHER FINANCING SOURCES (USES)
Transfers out (704,790) (704,790)
Total Other Financing Sources (Uses) (704,790) (704,790)
Net Change in fund balances $ (164,690) $ (164,690)
Fund Balance at Beginning of Year
Fund Balance at End of Year
83
Variance with
Final Budget-
Actual Positive
Amounts (Negative)
$ 547,945 $ 7,945
484 384
548 429 8 329
704,790
704,790
548,429 $ 713,119
459 414
$ 1,007 843
CITY OF TEMPLE CITY, CALIFORNIA
Non major Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in
Fund Balance-Budget and Actual
Used Oil Fund
Year Ended June 30,2017
Budgeted Amounts
Orig!nal Final
REVENUES
Intergovernmental $ 15 000 $ 15 000
Total Revenues 15 000 15,000
OTHER FINANCING SOURCES (USES)
Transfers out (10,115) (10,115)
Total Other Financing Sources (Uses) (10,115) (10,115)
Net Change in fund balances $ 4,885 $ 4,885
Fund Balance at Beginning of Year
Fund Balance at End of Year
84
Variance with
Final Budget -
Actual Positive
Amounts (Negative)
$ 10,149 $ (4,851)
10 149 (4,851)
(8,575) 1,540
(8,575) 1,540
1,574 $ (3,311)
5,004
$ 6,578
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajot' Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in
Fund Balance-Budget and Actual
State Gas Tax Fund
Year Ended June 30,2017
Variance with
Final Budget-
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental $ 765,000 $ 765,000 $ 693,582 $ (71,418)
Use of money and property 1 000 I 000 (1,000)
Total Revenues 766 000 766,000 693,582 (72,418)
EXPENDITURES
Current:
Public works 481,855 487 665 423,277 64 388
Total Expenditures 481,855 487,665 423,277 64,388
Excess (deficiency) of revenue
over Expenditures 284 145 278 335 270,305 (8,030)
OTHER FINANCING SOURCES (USES)
Transfers out (276,420) (276,420) (88,246) 188 174
Total Other Financing Sources (Uses) (276,420) (276,420) (88,246) 188,174
Net Change in fund balances $ 7,725 $ 1 915 182,059 $ 180,144
Fund Balance at Beginning of Year (162,801)
Fund Balance at End of Year $ 19,258
85
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajor Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in
Fund Balance-Budget and Actual
CDBG Fund
Year Ended June 30,2017
Variance with
Final Budget-
Budgeted Amounts Actual Positive
Orig!nal Final Amounts (Negative)
REVENUES
Intergovernmental $ 304,400 $ 423,400 $ 288,161 $ (135,239)
Other 25 000 104 998 79,998
Total Revenues 304 400 448 400 393,159 (55,241)
EXPENDITURES
Current:
Community development 25 000 25,000
Total Expenditures 25 000 25,000
Excess (deficiency) of revenue
over Expenditures 304 400 423 400 368,159 (55,241)
OTHER FINANCING SOURCES (USES)
Transfers out (304,400) (423,400) (288,161) 135 239
Total Other Financing Sources (Uses) (304,400) (423,400) (288,161) 135,239
Net Change in fund balances $ $ 79,998 $ 79,998
Fund Balance at Beginning of Year 1,093,312
Fund Balance at End of Year $ I 173,310
86
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajor Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in
Fund Balance-Budget and Actual
Air Quality Improvement Fund
Year Ended June 30,2017
Budgeted Amounts
Original Final
REVENUES
Intergovernmental $ 45,000 $ 45,000
Use of money and pmperty 100 100
Total Revenues 45,100 45 100
OTHER FINANCING SOURCES (USES)
Transfers out (14,270) (14,270)
Total Other Financing Sources (Uses) 04,270) (14,270)
Net Change in fund balances $ 30,830 $ 30 830
Fund Balance at Beginning of Year
Fund Balance at End of Year
87
Variance with
Final Budget-
Actual Positive
Amounts (Negative)
$ 46,654 $ 1,654
380 280
47,034 1,934
(20,020) (5, 750)
(20,020) (5, 750)
27,014 $ (3,816)
169,424
$ 196 438
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajor Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in
Fund Balance-Budget and Actual
MeasureR Fund
Year Ended June 30,2017
Budgeted Amounts
Original Final
REVENUES
Intergovernmental $ 410,000 $ 410,000
Use of money and property 1,000 1 000
Total Revenues 411,000 411 000
OTHER FINANCING SOURCES (USES)
Transfers out (1 ,500,000) (1,500,000)
Total Other Financing Sources (Uses) (I ,500,000) (1,500,000)
Net Change in fund balances $ (1 ,089,000) $ (1,089,000)
Fund Balance at Beginning of Year
Fund Balance at End of Year
88
Variance with
Final Budget-
Actual Positive
Amounts (Negative)
$ 411,885 $ 1,885
6,127 5,127
418,012 7,012
(845, 158) 654,842
(845,158) 654,842
(427,146) $ 661,854
1,325 736
$ 898,590
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajor Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in
Fund Balance-Budget and Actual
Sewer Reconsti'Uction Fund
Year Ended June 30,2017
Budgeted Amounts
Original Final
REVENUES
Charges for services $ 80 000 $ 80 000
Total Revenues 80,000 80 000
OTHER FINANCING SOURCES (USES)
Transfers in
Total Other Financing Sources (Uses)
Net Change in fund balances $ 80,000 $ 80 000
Fund Balance at Beginning of Year
Fund Balance at End of Year
89
Variance with
Final Budget-
Actual Positive
Amounts (Negative)
$ 82,500 $ 2 500
82,500 2 500
112,445 112,445
112,445 112,445
194,945 $ 114,945
634,226
$ 829,171
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajor Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in
Fund Balance-Budget and Actual
HSIP Fund
Year Ended June 30,2017
Budgeted Amounts
Original Final
REVENUES
Intergovernmental $ 1,217460 $ I 217 460
Total Revenues I 217,460 1217460
OTHER FINANCING SOURCES (USES)
Transfers out (1,217,460) (I ,217,460)
Total Other Financing Sources (Uses) 0,217,460) (I ,217,460)
Net Change in fund balances $ $
Fund Balance at Beginning of Year
Fund Balance at End of Year
90
Variance with
Final Budget-
Actual Positive
Amounts (Negative)
$ 87 198 $ (1,130,262)
87,198 (I' 130,262)
(18, 117) I 199 343
(18,117) I 199 343
69,081 $ 69,081
$ 69,081
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajor Special Revenue Fund
Schedule of Revenues, Expenditu1·es and Changes in
Fund Balance-Budget and Actual
Surface Transportation Program-Local Fund
Year Ended June 30,2017
Budgeted Amounts
Original Final
REVENUES
Intergovernmental $ 437 000 $ 437 000
Total Revenues 437 000 437 000
OTHER FINANCING SOURCES (USES)
Transfers out (437,000) (437,000)
Total Other Financing Sources (Uses) (437,000) (437,000)
Net Change in fund balances $ $
Fund Balance at Beginning of Year
Fund Balance at End of Year
91
Variance with
Final Budget-
Actual Positive
Amounts (Ne!l!!tive)
$ 8,935 $ (428,065)
8,935 (428,065)
(8,935) 428,065
(8,935) 428,065
$
$
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajor Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in
Fund Balance-Budget and Actual
1992/1996 Pari< Bond Fund
Year Ended June 30,2017
Budgeted Amounts
Original Final
REVENUES
Intergovernmental $ 14,500 $ 26,600
Total Revenues 14,500 26,600
OTHER FINANCING SOURCES (USES)
T1·ansfers out (14,500) (26,600)
Total Other Financing Sources (Uses) (14,500) (26,600)
Net Change in fund balances $ $
Fund Balance at Beginning of Year
Fund Balance at End of Year
92
Variance with
F ina! 8 udget -
Actual Positive
Amounts (Negative)
$ 26,600 $
26,600
(26,600)
(26,600)
$
$
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajor Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in
Fund Balance-Budget and Actual
Pari< Acquisition Fund
Veal' Ended June 30,2017
Budgeted Amounts
Original Final
REVENUES
Charges for services $ 40 000 $ 40 000
Total Revenues 40,000 40 000
OTHER FINANCING SOURCES (USES)
Transfers out (130,000) (269,350)
Total Other Financing Sources (Uses) (130,000) (269,350)
Net Change in fund balances $ (90,000) $ (229,350)
Fund Balance at Beginning of Year
Fund Balance at End of Year
93
Variance with
Final Budget-
Actual Positive
Amounts (Negative)
$ 38 500 $ I 500
38,500 (1,500)
(260,496) 8,854
(260,496) 8,854
(221,996) $ 7,354
287,869
$ 65,873
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajor Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in
Fund Balance-Budget and Actual
Lighting and Landscape District Fund
Year Ended June 30, 20I7
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes $ 1,240,000 $ 1,240,000 $ 1,373,978 $ 133,978
Use of money and property 1,500 1,500 5,027 3,527
Total Revenues 1,241,500 I 241,500 1,379 005 137,505
EXPENDITURES
Current:
Public works I 222,200 1,222,200 1,083,612 138,588
Total Expenditures 1,222,200 1,222,200 1,083,612 138,588
Excess (deficiency) of revenue
over Expenditures 19,300 19,300 295 393 276,093
OTHER FINANCING SOURCES (USES)
Transfers in 270,420 270,420 82,246 (188,174)
Transfers out (29,595) (31,405) (16,049) 15,356
Total Other Financing Sources (Uses) 240,825 239,015 66,197 ( 172,818)
Net Change in fund balances $ 260,125 $ 258,315 361,590 $ I 03,275
Fund Balance at Beginning of Year I 148,780
Fund Balance at End of Year $ 1,510 370
94
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajor Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in
Fund Balance-Budget and Actual
Environmental Protection Agency Fund
Year Ended June 30,2017
Budgeted Amounts
OTHER FINANCING SOURCES (USES)
Transfers out
Total Other Financing Sources (Uses)
Net Change in fund balances
Fund Balance at Beginning of Year
Fund Balance at End of Year
$
$
Original Final
$
$
95
Variance with
Final Budget -
Actual Positive
Amounts (Negative)
$ (112,445) $ (112,445)
(112,445) (112,445)
(112,445) (112,445)
112 445 112,445
$
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajor Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in
Fund Balance-Budget and Actual
S"' District Excess Grant
Year Ended June 30,2017
Budgeted Amounts
Original Final
REVENUES
Intergovernmental $ 140,000 $ 240 000
Total Revenues 140,000 240 000
OTHER FINANCING SOURCES (USES)
Transfers out (140,000) (240,000)
Total Other Financing Sources (Uses) 040,000) (240,000)
Net Change in fund balances
Fund Balance at Beginning of Year
Fund Balance at End of Year $ $
96
Variance with
Final Budget-
Actual Positive
Amounts (Ne!l"tive)
$ 240,000 $
240 000
(240,000)
(240,000)
$ $
STAT Section
97
CITY OF TEMPLE CITY, CALIFORNIA
Descl'iption of Statistical Section Contents
June 30,2017
This part of the City of Temple City's (City) comprehensive annual financial repoti presents detail information as
a context for understanding what the information in the financial statements, note disclosures and required
supplementary information says about the City's overall financial health.
Financial Trends
These schedules contain trend information to help the reader understand how the City's
financial performance and well-being have changed over time.
Revenue Capacity
These schedules contain information to help the reader assess the affordability of the
City's current levels of outstanding debt and the City's ability to issue additional debt in
the future.
Debt Capacity
These schedules present information to help the reader assess the affordability of the
City's current levels of outstanding debt and the City's ability to issue additional debt in
the future.
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the City's financial activities take place.
Operating Information
These schedules contain service and infrastructure data to help the reader understand how
the information in the City's financial report relates to the services the City provides and
the activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual
financial reports for the relevant year.
97
CITY OF TEMPLE CITY
Net Position by Component -Last Ten Fiscal Years
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Governmental actMties:
Net position, Investment In capital assets $ 24,916,427 s 26,109,373 $ 27,542,462 $ 28,131,358 s 29,208,039 $ 38,038,920 $ 51,168,623 $ 52,166,900 $ 53,143,904 $ 51,724,138
Restricted 8,637,170 9,924,588 10,961,386 14,736,866 11,889,013 8,445,931 4,083,955 4,898,508 6,132,978 7,098,321
Unrestricted 21,393,668 20,313,976 18 729,825 16,112,547 24 103 180 21,329,869 9,044 919 11485,507 11,584,805 9,745 324
Totalsovernmental activities net position ~ 54,947,265 ~ 56,347 937 $ 57 233,673 ~ 581980l71 s 55,200 232 s 67,814,720 $ 64,297 497 s 68 550915 s 70,861,687 s 68 567 783
%changes from prior year -19.86% 2.55% 1.57% 3.05% 10.54% 4.01% -5.19% 6.62% 3.37% -3.24%
98
CITY OF TEMPtE CITY
Change In Net Po5lllon • E~pense5 and Program Revenues· Last Ten Fls~al Year5
Expenses;
Government•! •ctivitles:
General government
Public safety
Public works
Community development
Community Services
Decline In value of property held for resale
Pass through e•pendaures
Interest on tong· Term Debt
Total govemmental activities exl'enses
P1ogram revenues:
Govemmental activities:
Changes for services
General government
Public safety
Public works
Community development
Community Services
Operating grants and contributions
Gene1al government
Public safety
Public works
Community development
Community Services
Capital grants and contributions
Public safety
Publkwo1ks
Community development
2008 ""' 2010 2011
2,060,431 2,410,692 2,716,505 2,H21,384
4,197,010 4,528,763 4,484,281 4,662,120
4,624,945 2,827,551 2,969,55S 1,960,629
1,277,870 1,620,525 1,480,064 1,657,399
2,380,609 2,813,843 2,581.200 3,016,958
343,561 333,209 321,043 429,238
2012
3.281,194
4,818,217
2,162,481
l,562,H59
3,357,423
149,503
2013
3,769,018
5,122,H68
2,520,925
1,692,614
2,990,670
2014
3,512.190
5,718,966
2,970,264
2.222,569
2,947,479
2015
3,663,847
5.005,841
3,065.241
3,314,298
2,940,625
2016
4,051.109
4,958,470
2,9()1,053
2,165,352
3,042,016
20171
5,502,437
5,301,481
4,813,770
2,6()0,()43
3,416.336
14,884,426 14 534,583 14,552,648 14,553,728 15 331,677 16,096,095 17,371,468 17,969,852 17,118,000 21,634,069
149,281 149,576 151,245 82,910
555,632 647,841 877,083 516,034
87,170 61,068 56,9()6 88,506
1,469,402 927,150 1,056,657 1,007,719
797,332 790.357 686,185 517,381
54.002 51.038 45,555
103,176 100,589 133,272
1.299.422 928,01H 1,886,781
104,763 717,302 349,299
1,309,753 1,168,478 975,576
1,762,314 78,551
44,773
136,935
4,065,287
273,917
83.035
39,317
719,955
220,136
1,322,476
528,043
100,238
3.749,837
246,086
99,848
1,128,428
588,380
314,631
1,315,893
567,649
1()0,135
5,128,889
856,693
73,000
142,880
596,058
917,044
1,424,955
596,879
141,216
100.000
4,772,938
2,279,134
88,168
168,420
469,919
978.835
1,953,925
588,477
8,069
106,230
4,679,133
785,166
227.450
117,564
323.446
915,330
2,005,946
670,770
7,812
120,618
3,468,405
7()1,99&
117,093
114,326
825,166
1,038,514
1,845,207.
597,718
129,323
3,496,161
726,858
131,600
Total governmental activities revenue' 7,692,247 5,619,968 6,218,559 6,816,497 7,025,936 10,073,698 11,059,372 9.965,644 8,448,980 8,904.868
Net revenues 1cxpcnsesl;
Governmental activities:
General revenues and other (hanges in net position
Taxes
Property Taxes
Transient Occupancy Tax
Sales Tax
Franchise Tax
Other Taxes
Investment Income
State MotorVehkle In Lieu
Slate ltevenue·other
Net loss on sate of assets
Other
(7,192,179) (H,914,615) (8,334,0891 (7,737,2311 !8,305,7411 (6,022,397) (6.312,096) {8,024,208) (8,669,020] (12,729,201)
3,610,345
45,013
1,764,523
560.375
118,497
1,233,122
3,482,229
13,063
3,764,946
41,S36
1,67S,H95
581.526
91,886
712,967
3,0S9,13H
8,203
2.780,452
34,844
1,475,728
533.542
127,573
262,636
3,549,571
6.975
3,259,4HS
34,221
1,614,726
542,523
99.701
409,097
3,229,851
8,844
365,120 379,190 44H,504 285,881
2,253,677
32,966
1,642,318
553,598
99,417
378,269
3,196,237
12,276
2,474,978
28.898
1,711,128
550,527
158,962
132,565
3,3l0,1HO
7,579
2,597,549
46,849
1,735.613
562,535
171,193
203,571
3,472,659
11,166
2,728,718
53,612
1.H73,423
590,620
175,892
180,197
4,887,322
8,956
2,873,580
59,522
2,000,558
573.650
180,943
282,190
4,071,629
15,273
3,044,926
54,864
1,959,152
537.773
193,670
7H,329
4,172,548
8,575
237,723 778.693 399,458 385,458
Total general revenues and tr•nsfers 11,192,287 10,315,287 9,219,825 9,484,329
1,071,678
9,240,436
262,068
8,636.885 9,038,HS6 11,277,435 10,456,803 10,435,297
Changes In net position 4,000,108 1,400,672 B85,736 1,747,098 934,695 2,614,488 2,726,762 3,253,227 1,787,783 12,293,9041
E~traordlnary Item.; RDA dissolution: 3,744,062
Change In net position 4,000,108 1,400,672 885,736 1,747,098 4,678,757 2,614.488 2.726,762 3.253.227 1.787.783 12.293.9041
Net Position at beginning of year 50,947,157 54,947,265 56,347,937 57,233,673 60,521,475 65,200,232 61,570,735 65.297,48H 69,073,904 70,861,867
Net Position ~I end of year 54,947,265 56,347,937 57,233,673 58,980,771 65,200,232 67,814,720 64.297,497 68,550,715 70,861.687 68.567.963
Source: City of Temple City Basic financial Statements
99
CITY OF TEMPLE CITY
Fund Balances of Governmental Funds· Last Ten Fiscal Years
2008 2009 2010 2011 2012 2013 2014 2015 2016 2011 I
General Fund
Nonspendable 1,678 12,795 10,531 $ 409,084 463,539 480,576
Restricted 2,751,507 2,563,065 2,360,171 1,771,165
Committed 4,500,000 4,500,000 3,500,000 3,500,000 3,500,000 3,500,000
Assigned 17,200,000 15,150,000 12,769,580 12,868,392 12,302,864 11,513,004
Unassigned 22,063,783 22,052,532 22,340,207 23,542,553 2,352,402 1,764,267 1,725,404 3,249,131 3,538,853 3,403,359
Total general Fund 24,815,290 24,615,597 24,700,378 25,313,718 24,054,080 2.1,427,062 18,005,515 20,026,607 19,805,256 18,896,939
All other governmental fund:
Nonspendable 1,088,219 170,305 170,597
Restricted 10,129 10,931 22,706 14,736,866 11,889,013 8,445,931 2,959,528 4,898,508 6,322,718 6,927,724
Committed
Assigned
Unassigned, reported in: (197,244)
Special revenue funds 11,944,610 12,495,281 12,846,187 (84,843) {150) (360,045)
Capital projects funds (1, 722,989)
Debt service funds (3,352,088} {3,314,129} (3,424,412) (3,223,856}
Total all other governmental funds 8,592,522 9,181,152 9,421,775 (3,308,699) (150) (1,722,989) (360,045) (197,244)
Total Govemmental Funds $ 33,417,941 $ 33,807,680 $ 34,144,859 $ 36,741,885 $ 35,943,093 $ 29,872,843 $ 20,965,043 $ 24,290,345 $ 25,938,234 s 25,798,016
(1) This schedule reports is using the modified accrual basis of accounting.
Source: C!ty of Temple City Basic Financial Statements.
100
CITY OF TEMPLE CITY
Changes In Fund Balanees of Government funds-last Ten flseal Years
T•xes
Ucen>e>afldPermtt<
tntergovermont•l
Chorge>lor>Crvke<
Fin••
U>e of money and property
Grant •nd Loan Repayment (Low lnoome)
Other
Total revenues
Exp.nditure!
Oment:
Geoer~l Governm~n1
Communl1v development
Publtc Salety
Public work>
Community Service•
Capital outlay:
Oebt>ervi<e>
Principal retirement
tntere!l and l«cal charges
Bond IS>uance Costs
~aS>-Through payment
ERMPayment
Total expenditures
E.ce" jddlcienc~l of re•enues over
(under) expenditures
O~her llnar><lng •ourre! (u1e1):
Tr•n!le"ln
Tton!lerout
l"uance of Refunding Revenue Bonds
Bond Discount
Net other flnanctng •ources (u•e•)
"" 2009 2010 2011 2012 2013 2014 2015 2016
5,417,410 5,514,153 U4U26 6,303,326 6,126,140 6,068,935 6,ll0,783 6,678,220 7,004,011
1,385,267 950,216 1,096,347 1.028,2!14 1,345,183 1,BS,720 1.434,610 1,844,793 1,775,836
6,135,863 5,792,744 6,913,107 6,462.142 6,026,300 7,980,590 9,334,821 8,964,552 6,816,792
1,966,285 1,968,828 1,781,384 1,104,495 929,351 2,180,285 1,760,155 2,204,878 1,985,763
347,871 399,053 631,064 495,4£9 697,246 568,553 580,039 447,512 312.136
1,654,577 1,014,633 610,529 562,190 493,070 220,984 411,657 242,457 312.681
103,493 87,326 H,S90 49.195 74,632 85,359
2017
7,164,365
1,772.186
7,324,903
1,622,594
813,727
91.2g}
87,460
288,075 306,020 349,851 415.145 128,805 269,647 266,166 860,667 456,174 411,513
17,298,941 Hi,042,973 16,057,498 16,420,246 15,820,927 18,710,013 20,098,231 21,243079 18,665,393 19,288,099
1,879,166 2,012,604 2,26~,820 2,492,012 2,713,777 3,778,538 3,130,434 3,393,501 3,440,424
1,208,947 1,708,161 1,323,870 1,231,126 1.227.221 1,635,843 2,047,539 1,843,581 2,137,193
4,147,359 4,358,517 4,285,919 4,353,874 4,676.268 5,103,805 5,113,419 4,878,406 4,834,728
5,373,0:10 3,790,966 2,376,038 1,665,506 1.803,025 2.207,950 2,544,287 2,746,162 2,888,326
2,190,855 2,517,786 2,246,777 2,733,1&0 2,994,515 2,784.456 2,739,171 2,667,377 2,926,417
250,600 233,868 2,106,266 1,132.410 1.520,720 9,269,731 13,929,743 1,665,752 1,313,404
280,000
490,352
12,197
285,000
471.281
51.612
295,000
452,423
40,046
330,160
305,000
4H,050
16,333
67,974
315,000
153,684
10,897
4,502.828
2.260,626
5,208,959
2,555,994
2,998,348
1,901,562
15,632,506 15,429,795 15,720,319 14,450,445 15,475,107 24,780,323 29,604,593 17,194,779 17,540,492 19,428,117
1,466,435 613,178 :137,179 1,969,801 ~45,820 (6,070,250) (9,506,362) 4,048,300 (140,218)
3,002,181 2,709,757 2,881,170 1,740,640 2,345,392 10,038,826 13,041.701 13,041,701 2,422,109 2,583,586
(3,208,437) (2,933,196) (1,881,170) (1,740,640) (2,H5,392) (10,038,826) (13,041,701) (13,041,701) (2,422,109) (2,583,566)
(206,256 223,439
Change In lund balance before extraordinary items _h'-'O''" """'--''""'"·'<"'--''"""'"''' -"""'O'·•'""'--"""''·'"'"'-.JI''·"",'·""'"'' -''''-'""''·''""'LI -'"·'"'''·""'""--'C·'"'''·'>""'-_lP"'"'·'"''"-"
htraordlnoryltems. RDA di.,olutlon tronJactlon 517187
Net change In lund balance 1,260,119 389,719 317,179 1,969,801 (171,567) (6,070,250) (9,506,362) 4,048,300 U24,901 (140,218)
r:und balantes at beginning of year· restated: 32,157,762 33.417,941 33,807,680 34,144,859 36,114,660 35,943,093 30,471MS 20,242,045 24,813,333 25,938,234
Fund t>alar>ee (deficit) at en<l of year: 33,417,941 33,807,680 34,144,859 36.114,660 35,943,093 29,87l.843 20,965,043 24,290,345 25.938,234 25,798,016
No to: This schodulo reports using tho modlfl•d artroal ba,is olattountlng.
Sour<e: City of T~mple City Basic Flnancla15tatements
101
Category 2007/08
Rnldentl,l uso,u1m
Comner~l1l 21s.m.tnJ
lndusbhl 34.8!/lMI
lntlilutlonll 1:1,511.061
------------------
lrllg•ltd 411,541
ldltcelltneout 5'3.m
Roo:r .. Uonol 2.316.252
v ... nt JJ.~.ur
SBENo•unltor, 591,361
Cron RtfNente 7.381.510
.......
UMoourod 26.3~1.071
bem~t !Mf5,mJ
TOTAI.S 3.~9.728.323
. --··
Tot>lnlrt<tR•r• 0.0;154
No\0'.:
Eumpl vofou 111 not 0\<ludod llo Toto~
THE CITY OF TEMPLE CITY
ASSESSED VALUE OF TAXABLE PROPERTY
2007/08.2018117 Taxable Property Values
2()08/09 2009/10 2010111 2011(12 20121'13 2013/14 2014115
2,914.S&5,1M 2.U2.97HU l!MU7~.507 J.m.ssu~s 3.2U.1l-W1 3.4MA85,194 l.M9,ltU56
224.185.414 m,l59.m 135.24M42 241,334,139 247,949.455 258.434.441 2e8.0611,U9
34.711.163 3~.13!.@ :>8,968.7~1 3U34.596 41.224,415 42.828.!10 43.112.413
11.074,015 11.3~9.~2 17,120,301 1Ml5,635 14.M0,12C 14.528,414 19,87UJ5
---------------.......... ----------------
487.091 4QUl2 495.652 499,382 459JIOO 488,180 106,342
5$,417 55,504 55,370 55.184 S6,698 ~8.033 l$,300
J.30l.989 J.m.m 2.150.JGZ 1.1~U~ 1.213,113 I.S22,574 1.239.690
~I),JI)g,l~2 ~1,1811,447 28.S6S,IOJ 2J,NU17 U,285,1BS 32.1146.213 31,540,476
362M1 361.891 25U11 ~2.0!! 2S2.011 151.011 252.011
7.114Mg! t.m.m 7.9S9.m I 3.11Ml7 9.m.m IO.ll4.G09 10,214.2~1
'
......
27.096.m 25.D63.l:l6 1"11.917,083 32.360.705 32.947.~8 31.615.621 Jl.8S9.380
IU~O.OIS] !Wt7441 [5,735,744] [S,JU.744) JS,m,J«J JV3M44J [~JOM3$J
3.210.42S,923 3.312,837,916 3,410,HO,I31 1.546.9111.027 3.671.8!9,882 3.858.1Jt.256 4.0011,254.981
-···-·-·--·-·-·-···-··-·-·---·---·-----···-··-· ----·-· ....
! .. ... ·-··---
0..~18S 0.09197 0.09202 0.09120 0.0~)18 0.08886 0.088~
2015/18
3,049,121,479
202,005.464
40.113.472
20,262,630
100.342
lO,:WO
UGI.7ml
35.M2,4Sg
252.011
11,1!9.31J
. ....
33.249.806
lMI2,731J ..
4.ll3,439.234
··------·-··-·-
0.08805 ---
In 1918 tho""'"' of tho S\olo or Cor.'ot/111 p.,,,~ Pto~ooftlon 13 ..t.kh ~~mno~ ,,.., to •lolol modmum rolo oii'J,. b~<o4 upon tho lho • ., .. ,,a v.uo .r1110 propolly btlng '""""· fiKh ytot.lho ouonod volut or pro~o~y "''Y ••
O"l(tUUd ~ M 'lnll~n lOti .... (M\Ud IO 0 011<'"''"" Of2'Jo). WIIMIW tl<tj)IIOM. j)IOpOfl)' II on,.,. ffOUf.,td II ~ rt!UI o/ fltW (Onolnlti!MI Otlhty Of 01 !Ill llml •11 !Old \0 I OIW .......... AI !1101 poW. 1111 p!Oplfl)'!l ff"UOUd
bo10d upmtho odded ........, oil"" oooalru<Hon ot oil hi pllf<IIOU fl'lll (OlO!UI voluo) ot oeooo111k: voluo of tho plopolly sold. TI10 '"""'a volu!lf.IM dolo oMMI obovo ""'"''"" lho or\1)' <loll <uno nil)' ovo .. blo wlh tooped tolho
o<luOI mofl<OI valiO ollo•oblt ptoporty ond to t""Jo<l to tho ltn!oiiOII$. dtO<flbod obovo
2018/17
4.1M.tsS,!ll
288_81$.180
4U67.12a
23.706.6~5
106.9~
JM~1
2.461.340
5\\,176)\55
!2.127
12.~98.7$7
31.320.2/Q
[G,587,21SJ
~.638,038.449
-·------··
o.o~s
D.al9 Sollee: los Angeles Couni)'AUI!&$« 2007A:IB • :2016/17 Combined Ts~ Rolls Prepored On Blllr.I0\7 By !.IV
This repar Is no! /o be used in suppal of ckbl issuance or oon/inuing disclosurrt Slal"""'nl.! Without rhe written cotuenl of HdL, Coren & Cone
102
THE CITY OF TEMPLE CITY
DIRECT & OVERLAPPING PROPERTY TAX RATES
(RATE PER $100 OF TAXABLE VALUE)
Las110 Fiscal Years
Agency 2p_0!108 2008/09 --~~99110 2010111 2011112 ?9_1_?!1_~ 2013/14 2014/15 2_015/16 2016/17
Baifc.-Li!lo}F \.00000 1.00000 1.00000 -fjJoOOo 1.00000 1.00000 i.-OCXJOO 1.00000 1,00000 1.00000
Areedia lighting 0.00000 0.00445 0.00000 0.00000 0.00000 0.00000 0,00000 0.00000 0,00000 0.00000
Arcadia Un!fted 0.09086 0.07911 0.07561 0.07456 0.07691 0.07670 0.07550 0.07M3 0.07507 0.01166
El Monte City School District 0.08068 0.09045 0.!11!07 0.12388 0.12733 0,13298 0.11735 0.11922 0.14642 0.14682
El Monte Union High School 0.02820 0.05160 0.09664 0.08476 0.09591 0,08992 0.09799 0.084111 0.09155 0.08469
La Community College District 0.00079 0.02212 0.02311 0.04031 O.Ol530 0.04875 0.04454 0.04017 0.03575 0.03596
Melropof~an Water Oh~lrlct 0.00450 0.00430 0.00430 0.00370 o.oo:m 0.00350 0.00350 0.00350 0.00350 0.00350
Pasadl!llD Community College Dlst 0.01972 0.01742 0.02300 0.01986 0.01$56 0.02056 0.0189$ 0.01002 0.00072 0.00885
Ros.emGad $1:1\(lol Dll:lrlct 0.08293 0.06976 0.11369 0.10743 0,10507 0.10240 0.10314 0.09006 0.0$997 0.09633
San Gabrlal Unlded 0.05741 0.09294 0.10070 0.10190 0.06454 0.10523 0.10062 0.11444 0.106114 0.10534
Temple City Unified 0.04414 0.04661 0.04910 0.04950 0.04690 0.04981 0.10744 0.09985 0.00823 0.10052
Total Dlre<:t & Overlapping~ Tax Rates 1.40713 1.47774 U0501 1.1105811 1.511422 1.821175 1.671127 1.MG08 1.61111116 1.!'14888
City's Share of 1% Levy Par Prop 13~ 0.09370 0.09370 0.09370 0.09370 0.09370 0.(19370 0.09370 0.09370 0.09370 0.09370
Voter Approved Clly Debt Rate
Redevelopment Raw 1.00450 1.00430 1.00430 1.00370 1.00370
Total Direct Rata~ 0.00254 0.00188 0.09197 0.09202 0.09120 0.09076 0.08886 0.08892 0.08895 0.08005
Nalu:
'In 1976, CMIMI\'a VUI<:B ~M~.;>d Pr~poltloo LOwhld'l $N !11~ pr<:-pN'!y!llx tal~ at~ t 00% lo:<Od ~mour'il T~•~ I ()0% I$ ~MINI b~ 38 t"-"•nl) J{l~nt>~~ 1~/I'<IU(h!M ~lt>jNt Pf¢pCr!YrWdM '"tr-on i1addtooo
t~ m~ \ UQ% '''~d amovm, ~~oo~~Y wmQr; ~~~ cnar\}~a ta~Q; ;-; a p~rc~~ta9~ .;.r 011~11~~ ~r"pOirt)IVo!i\1~1 /<}/ tM pa~m~nt or ~nyv<X~ appr()ll~a MM~
•oo~~~rr~ng rAtA~"'~ !MM oil•» Ill Mo1 «>~•nly >J<>-~~mm~nh I hill arr,ryto 1''-:>~My ~ ... ~~" wolhil'lltu> (;ty not ;Ill <W~~~ppl~ rnt.;, ar1'1YII:> al oty prop~~y '""'*"'
'\.1Ys f.hma or 1% t~''Y lo; h!<'~<J on Uw <:ot)l's ol"~"artt"' H""""'' hNI<! t•"' uoht ,;~.,WI !I> the 11119~~~ /1ijJ ta"~'la voiua w-!li11 Um Cly t;f.!AF !l""~"ri fis>d !II< Mill\~ tnHY 1>a1 !In ttodo~IBd rn hl< "~'" ![llu~>
~~~t~~;~;:~~~~n~~~";,:::.~~~~;,~,':;h;y,~!:,~~~v1,~'u't~~,~~6w;~~~~~:~-W~:i;;:t:J~~~~:~'(;,'~~~it~";tr:;~~f::~~;:/~~~·~,1 (t~~:u~0;.:;:~';;':~1r~1 ~:t,t:~;~Hit~~~.~;,"d '"''1 "'"''~N••~J '~1 "' ~<<~ •J>pl<ad
'l<lh\1 (lor ad Rille •~U\11w~•¢•t~ot HV~!IIQa -:>t HI\ l!id"'"J>I\ <lrflcl """~ llf>pltt!d by!h~ CdyiAoJ!IIlt.)'JMepltllt'lJ !lid 'todoM!clli slld.-nlttlhtnalll'>t> "''d ~nluda~ ""'~"""s d•m~d trom ><ocrd ll•<J'I"'"'i>'"
XI1:)1141M T<>i~l DrKI Rd~ 1'1/l k>~r <MI>>d~s rMM>II~ nMH-'1~~ !rr,m lho f:>rmMre-1 ..... ~1opm~n! tM r<>l~ M!M Chf>.1&r.q~s to f~C<1!_1nllad ~nl(lrce'Jbl~ ¢No~~r-t1on~ N~ ~~~>.-n'1<1 !'> hi)II'J!.>~M , .. ~"~'0\<1
Wnrv.s Xlt21t! r-:>rliKr P<KP~$<.'~ or 1111~ mp<Ht,ro~ldual t¢'JC!lUO ·~ <IWJmM to bod•~tnW:W to ltw C>t)ll'Agcnwlrrttx-~am~ proportu;.n~ a~ ~Mro! Mtd r~vc-n...o
Dat11r Soumt: Lo~A119elll'.s CounfyAnenor 2007108 • 2016117 Ta1. Rale Tllblll' Pre!"~ red On 91012017 By MV
Th/$ report Is nef to bo usod In support of debt /$sutt~Co or~ont/nu/ng dhclo~uro stllttments wlfho!lftht Wrilltn ~on sent of HdL, CofiJn & Cono
103
City of Temple City
Property Tax levies and Collections
last Ten Fiscal Years
Fiscal Year Taxes levied for
Ended June 30 forthe Fiscal Year
2008 $3,104,241
2009 $3,210,234
2010 $2,660,326
2011 $3,238,026
2012 $3,359,572
2013 $3,619,421
2014 $3,794,593
2015 $3,984,673
2016 $3,897,361
2017 $3,421,264
Collected within the
Fiscal Year of Levy
Percent of
Amount Levy
$2,660,485 85.70%
$2,820,660 87.86%
$2,857,221 107.40%
$2,941,760 90.85%
$3,063,945 91.20%
$3,174,199 87.70%
$3,340,124 88.02%
$3,549,165 89.07%
$3,428,032 88.00%
$3,044,928 89.00%
104
Total Collections to Date
Collections in Percent of
Subsequent Years Amount Levy
$443,756 $3,104,241 100%
$389,574 $3,210,234 100%
-$196,895 $2,660,326 100%
$296,266 $3,238,026 100%
$295,627 $3,359,572 100%
$445,222 $3,619,421 100%
$454,469 $3,794,593 100%
$435,508 $3,984,673 100%
$469,329 $3,897,361 100%
CITY OF TEMPLE CITY
Revenue Capacity
General Fund Revenues-last Ten Fiscal Years
Fiscal
year Licenses and
ended Taxes Permits Intergovernmental
2008 4,578,801 1,385,267 3,482,229
2009 4,542,514 950,216 3,051,888
2010 3,830,602 1,096,347 3,549,571
2011 4,451,470 1,028,284 3,229,851
2012 4,581,975 1,345,183 3,196,237
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
2016 $ 5,688,253 $ 1,775,836 $ 4,079,441
2017 $ 5,790,387 $ 1,772,186 $ 4,172,548
Charges for
Services
674,154
662,360
542,976
631,355
757,496
957,437
1,510,392
1,527,116
$ 1,627,626
$ 1,414,108
Source: City of Temple City's Comprehensive Annual Financial Report
Investment Rental Other Total
Fines Income Income Revenues Revenues
242,337 1,034,417 90,108 287,075 11,774,388
287,575 694,444 80,794 305,020 10,574,811
534,287 442,363 65,928 348,851 10,410,925
423,041 409,097 57,442 414,145 10,644,685
646,498 378,269 57,268 128,805 11,091,731
521,440 132,565 53,369 269,647 11,504,851
554,805 203,571 68,411 246,206 12,612,100
433,102 148,086 89,116 819,206 15,179,095
$ 303,524 $ 306,568 $ 84,241 $ 303,058 $ 14,168,547
$ 813,356 $ 77,777 $ 87,460 $ 306,575 $ 14,434,397
105
THE CITY OF TEMPLE CITY
2007108 TOP TEN PROPERTY TAXPAYERS
Top Property Owners Based On Net Values
-----------------·-----,--------------------------------------
Owner Secured Unsecured Combined
%of %d %d
i ~~rteb Vlllue N~IA~--P~rcels "'"' Net~~--Vlllult NeiAV --
I) CALAC INVESTMENT ' $19.718,240 0.64% $19,71 B,240 0,64%
---------------------
2) GRAOIAZIO INVESTMENT COM~ANY 5 S13.0S4.030 0.43% $13,084.030 0.42%
IP<<>;b<>)P(>Oo~•<MP""o1;1
0.40%1 3) TCO ENTS INC f S\2.296.100 $12,29&,100 0.40%
IP<M"'>W'"'<MP~<l>l
~) SANTA ANITA CONVAlESCENT HOSP ' $G,~8t,G02 0.21% ' $9~1.954 3.57% $7,423,556 0.24%
5) RAlPHS GROCERY COMPANY f $5,69\,GOS 0.19% f $599,175 2.27% $6,490,790 (1.21%
8) JAMES J ANO SUE FEMINO TRUST ' $5,307.5&2 0.17% S5,307,562 0,11%
!1'••·'"'-''~'~"'"""-""''~~J
1) GEN BOARD OF 11-!E CHRCH OFT HE NAZARN ' $1,993,727 0.16% $4,993,727 0.16%
8) 5561 &JLTANALLC f $4,132.181 O.H% S4,432,1a1 0.14%
9) SAND? INVESTMENTS LLC • $4,360,000 0.14% $4,~80,UOO 0.14%
10) BRISTOL HOLDING LLC ' $4,092.764 0.13% $4,092,764 0.13%
Top Ten Total " $80.6113.811 2.63% ' $1.541,129 5.6~% 1$2,224,940 2.&8%
City Total $3,063,33~.2~2 $26,391,1)71 $3,08\1,726,323
Top Owners lUI edited oo 8112/16 by MaheaVus1nl) S9lts lhroogh OS/30.108 (Vei'SIOO R.1)
P•• SOUII:Il: ~OS ~ng~leS COIInlf ~Uf.UOI' 2(1()71011 Combllle<J TU ROllS an.:t//lO! 5.11.1; Non 110~1)' TIN ROll
111/s-t'P'>tl If m>llo M uudtn •uppott ot d..tl!lfluan"" or oonrlnulng dl...,ln•ur~ ~U.fl'mMU wnMutlh~ wrll~n ~on•~Jt of Hdt,. C<>/<!'n & Con~
106
----·----~----
Primary Use &
Primary Agency
Commerdal
Sueees'or Agency
CommerCial
SuttU501 Agency
Vacant
Succeuor Agency
IMI~Ull(l(l81
TD~1
Commercinl
TD#I
Commercial
SuccestN Agency
Residential
TOn1
Re~ntlal
TON1
commercl~l
SUccessor Agency
Commercial
Su~U$01 !IQ.&My
Pr~ill'ed On81612017 By MV
THE CITY OF TEMPLE CITY
TOP 25 SALES TAX PRODUCERS
FOR FISCAL YEAR 2016-17
Business Name
99 Cents Only
AT&T Mobility
Chevron
Circle K
CVS Pharmacy
Grand Harbor Restaurant
lcho lzakaya Fusion Cuisine
In N Out Burgers
Kang Ho Dong Baekjeong
Kmart
McDonalds
Modern Lighting
Office Depot
Oo-Kook Korean BBQ
Ralphs
Rite Aid
Seafood Palace
Star Maintenance Supply
Super A Foods
Super Pets
Temple City Mobil
Temple City Powersports
The Hat
TJ Maxx
Vasil
Business Category
Variety Stores
Electronics/Appliance Stores
Service Stations
Service Stations
Drug Stores
Casual Dining
Casual Dining
Quick-Service Restaurants
Fine Dining
Discount Dept Stores
Quick-Service Restaurants
Plumbing/Electrical Supplies
Office Supplies/Furniture
Casual Dining
Grocery Stores
Drug Stores
Casual Dining
Light Industrial/Printers
Grocery Stores
Specialty Stores
Service Stations
Boats/Motorcycles
Quick-Service Restaurants
Family Apparel
Service Stations
Percent of Fiscal Year Total Paid By Top 25 Accounts= 59.84%
• Firms Listed Alphabetically
Period: Apr!l2016 Thru March 2017
Source: Hinderliter, de Llamas & Associates, state Board of Equalization Printed 0711912017
107
THE CITY OF TEMPLE CITY
DIRECT & OVERLAPPING DEBT AS OF JUNE 30, 2017
Percent
Gross Bonded Applicable Net Bonded
Debt Balance ToCI
Overlapping Debt
'337,05 METROPOLITAN WATER DISTRICT 36,281,674 0.419
473.57 EL MONTE CITY SO OS 2004 SERIES B 1,519,104 10.741
473.59 El MONTE CITY SO OS 2004 SERIES D (2009) 2,030,000 10.741
473.60 EL MONTE CITY SO OS 2008 SERIES A 53,375,000 10.741
473.61 EL MONTE CITY SO OS 2008 SERIES A-1 BABS 5,098,159 10.741
473.63 EL MONTE CITY SO OS 2012 REFUND BONDS 8,993,668 10.741
473.64 EL MONTE CITY SO OS 2014 SERIES A 12,970,000 10.741
473.65 EL MONTE CITY SO OS 2015 REF BONDS 76,460,000 10.741
473.tl6 EL MONTE CITY SO OS 2014 SERIES B 11,990,000 10.741
629.53 ROSEMEAD SO OS 2007 SERIES D 335,000 3.376
629.54 ROSEMEAD SO OS 2008 SERIES A 615,000 3.376
629,55 ROSEMEAD SO 082011 REF BOND 7,335,000 3.376
629.56 ROSEMEAD SO OS 2012 REF BONDS 5,250,000 3.376
629.58 ROSEMEAD SO OS 2008 SERIES T 1 8,041,503 3.376
629.59 ROSEMEAD SD OS 2014 REF BONDS 5,975,000 3.376
629.60 ROSEMEAD SO OS 2016 REF BONDS 12,550,000 3.376
745.55 EL MONTE UNION HSD OS 2008 SERIES A 1,209,213 6.314
745.56 EL MONTE UNION HSO OS 2008 SERIES 8 30,187,623 6.314
745.57 EL MONTE UNION HSD OS 2015 REF BONDS 26,325,000 6,314
745.56 EL MONTE UNION HSO OS 2016 REF OLYO DLVR 22,950,000 6.314
805.55 LA CCD DS 2003 TAXABLE SERIES 2004B 33,670,000 0.017
605.58 LA CCD OS 2001, 2006 SERIES B 4,880,000 0.017
805.60 LACCD OS 2001, 2008 SER E·1 14,440,000 0.017
805,62 LACCD DS 2003. 2008 SER F·1 14,320,000 0.017
805.65 LA CCD OS 2008, 2009 TAXABLE SERB 75,000,000 0_017
805.tl6 LACCD OS 2008, 2010 TAX SERIES D 125,000,000 0.017
805.67 LACCD DS 2008, 2010TAX SERE (BABS) 900,000,000 0.017
805.70 LA CCO OS 2013 REF BONDS 254,505,000 0.017
805.71 LA CCO OS 2008 SERIES G 224,160,000 0.017
805.73 LA CCO OS 2015 REF SERIES A 1,459,300,000 0.017
805.74 LA CCD DS 2015 REF SERIES B 37,655,000 0.017
805.75 LA CCO OS 2015 REF SERIES C 289,955,000 0.017
805.77 LA CCD OS 2008 SER J 414,995,000 0,017
812.53 PASADENA CeO OS 2002, 2006 SERIES D 5,265,000 5.716
812.54 PASADENA ceo OS 2002, 2009 SERIES E (BABS) 25,295,000 5.716
812.55 PASADENA CCO OS 2014 REF SERIES A 16,680,000 5.716
812.56 PASADENA CCD DS 2016 REF SERIES A 33,390,000 5.716
817.51 ARCADIA UNIFIED DS 1993 SERIES A 1,571,207 3.000
817.53 ARCADIA UNIFIED DS 1993 SERIES C 552,222 3.000
817.55 ARCADIA UNIFIED DS 2006 SERIES A 27,000,000 3.000
'This fund is a po;~r~on of 11 hu·ger agency, ttnd is rtlllponsibltt fur debt In alt'IIS outside the city.
Thi$ report refteets debt which Is being rep11!d through voteHpprCNed property tllx lndebtednen. ~ exducles mortage revenue, tox al1ocetion bond$, interim financing
obligalloot, noo·bonded eepUalleete obllgatlorlll, end eertlficatn of parHpatlon, unlen provided by the city.
Debt
152,027
163,182
218,035
5,732,820
644,241
965,978
1,393,062
8,212,298
1,287,803
11,310
20,763
247,633
177,243
271,485
201,719
423,694
76,344
1,905,915
1,662,046
1,448,963
5,731
831
2,458
2,438
12,766
21,277
153,196
43,321
38,156
248,398
6,410
49,355
70,639
300,935
1,445,804
953,390
1,908,495
47,139
16,568
610,047
Overlapping gove.-nmenl:;; ;:r,re those that coincide, >:~1 leut fn p;:r,rt, with the geagnophic boundaries of the tity. The perl:errtal!tl of overl;:r,pplng debt ~pplict~ble is estim,ted by
using tenbla nsutted values, Applicable peteenlllgn were ntlmated by determlnf!lg tlla po1Uon of another govemmantat un!t's taxable ennudvalue thot Ia wlthln the clty'a
boundaries and dlll!dng It by each un!t's total taxable asseued value.
Data Source: HdL Coren & Cone, Los Angeles County Assessor and Auditor Combined 2016/17 Uen Date Tax Rolls Prepared On SfB/2017 By M.J
This report. Is not to be used In support of debt Issuance or continuing disclosure statemenls Without the wfitten conselll of Hdl,
core11 & cone
108
THE CITY OF TEMPLE CITY
DIRECT & OVERLAPPING DEBT AS OF JUNE 30,2017
overla·pp·~ng-oebt (Contin-Ued)--.. ---------·-··----------------···
817.57 ARCADIA UNIFIED OS 2006 SERIES B
920.54 SAN GABRIEL USD OS 2002 SER 2007 C
920.55 SAN GABRIEL USD OS 2008 SERIES A
920.56 SAN GABRIEL USD DS2010 REF BCND
920.56 SAN GABRIEL USD DS2012 REF BOND SERIES B
920.60 SAN GABRIEL USD 082015 REF BOND SERIES A
920.61 SAN GABRIEL USD 082015 REF BOND SERIES 8
947.51 TEMPLE CITY USD OS 1998 SERIES A
947.52 TEMPLE CITY USO OS 1998 SERIES 8
947.53 TEMPLE CITY USD DS 2005 REFUNDING BOND
947.54 TEMPLE CITY USD DS 2012 SERIES A
947.55 TEMPLE CITY USD OS 2012 SERIES B
Total overlapping Debt
Percent
Gross Bonded Applicable
-----~bt Bala_'!_~~-.. -" __JQ_Q_Ijt
194,055,000 3.000
8,604,370 2.429
1,608,245 2.429
6,235,000 2.429
37,571,424 2.429
32,880,000 2.429
2,000,000 2.429
1,082,259 71.252
4,426,501 71.252
8,890,000 71.252
22,405,863 71.252
53,202,588 71.252
2016/17 Assessed Valuation: $4,530,501,437 After Deducting $107,537,0121ncremental Value.
Debt To Assessed Valuation Ratios: Direct Debt
overlapping Debt
Total Debt
'This fund is 11. portion of alar~r agency, nnd i$ responsible fur debt In nrens outside the ~ity.
0.00%
2.28%
2.28%
Net Bonded
Debt
5,821,986
209,004
39,065
151,451
912,628
793,813
48,581
771,133
3,153,978
6,334,314
15,984,653
37,907,973
103,462,4721
This report rebel$ debt which Is belno repo.ld lhrough voter·nppro.-ed property tax lndebtednen. It e)(cludes morw.go revenue, tAX alloeetion boncb. Interim financing
obllg11.~11111, non-bonded c~ptl~l lean obli!l'ltlont, ~nd certlfieates ofpartlpaUon, un!en provided by the city.
Overl>~pping governments 11re tho~;E~Ih>~t coincide, at least in p11rt, wilh the googrephie boundluilt5 of the city. The pereeniii!Jit of overlspptng debl11.ppficsble is estimated by
using ta~6ble osaeate.d v6!ues. ~pUClllb!a percantGgn ware utimtted by determining the portion of onother governmental un!t'a tuabla ana~~oud Yllllla thllt Is wllhln the city's
boundaries and dl'A<Ing It by each unit's total taxable aueuedvalue.
Data Source: HdL. Coren & Cone, Los Angeles County Assessor atrd Auditor Combined 2016117 Uen Date Tax Rolls Prf!i)ared On ll/8/2017 By MV
This report Js not to be used In support of debt Issuance' orcorrlinutng disclosure sfa~menls wllhout the wrlttlffi consent of HdL.
Coren & cone
109
CITY OF TEMPLE CITY
Operating Information
Construction Activity· Last Ten Fiscal Years
New
Calendar New New Value of
vearended Residential Commercial Total Demolitions Construction
2008 $ 20,980,153 $ 1,340,500 $ 22,320,653 $ 123,390 $ 23,537,763
2009 19,127,998 3,892,187 23,020,185 99,000 22,921,185
2010 20,200,934 2,156,535 22,357,469 162,000 22,195,469
2011 23,754,355 1,175,540 24,929,895 139,048 24,790,847
2012 19,536,413 2,490,427 22,026,840 144,000 21,882,840
2013 21,298,596 14,433,160 35,731,756 322,000 35,409,756
2014 32,964,118 1,298,205 34,262,323 429,900 33,832,423
2015 37,651,625 2,217,000 39,868,625 421,900 39,446,725
2016 30,428,763 2,153,520 32,582,283 474,000 32,108,283
2017 $ 32,812,558 $ 725,000 $ 33,537,558 $ 371,398 $ 33,166,160
Source: City of Temple City Community Development Department
Ill
CITY OF TEMPLE CITY
Operating Information
Full-Time Equivalent City Employees by Function· Last Ten Fiscal Year
Function 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
General Government
Full Time 7.80 7.80 7.80 7.80 7.80 8.80 9.95 9.95 9.95 10.95
Part Time 0.64 0.61 0.65 0.85 3.11 3.11 1.85 2.12 2.82 1.44
8.44 8.41 8.45 8.65 10.91 11.91 11.80 12.07 12.77 12.39
Community Development
Full Time 7.15 7.15 7.15 6.10 6.10 6.20 6.90 6.90 6.90 6.90
Part Time 0.44 0.16 0.26 0.06 1.64 2.64 1.60 1.26 0.69 0.55
7.59 7.31 7.41 6.16 7.74 8.84 8.50 8.16 7.59 7.45
Parks & Recreation
Full Time 11.70 11.70 11.70 12.15 12.15 12.25 12.05 12.05 12.05 12.05
Part Time 19.56 21.88 21.46 18.96 22.66 18.92 26.05 26.22 26.69 23.97
31.26 33.58 33.16 31.11 34.81 31.17 38.10 38.27 38.74 36.02
Public Safety
Full Time 5.40 5.40 5.40 7.05 7.05 7.65 7.55 7.55 6.85 6.85
Part Time 0.00 0.00 1.43 2.33 4.22 4.07 4.51 2.83 1.41 1.54
5.40 5.40 6.83 9.38 11.27 11.72 12.06 10.38 8.26 8.39
Public Works
Full Time 3.95 3.95 3.95 2.90 2.90 3.10 3.55 3.55 3.25 4.25
Part Time 0.04 0.00 0.34 0.00 0.28 1.79 0.46 1.84 0.83 0.12
3.99 3.95 4.29 2.90 3.18 4.89 4.01 5.39 4.08 4.37
Full Time Total 36.00 36.00 36.00 36.00 36.00 38.00 40.00 40.00 39.00 41.00
Part Time Total {1) 20.68 22.65 24.14 22.20 31.91 30.53 34.47 34.27 32.44 27.62
TOTAL 56.68 58.65 60.14 58.20 67.91 68.53 74.47 74.27 71.44 68.62
Note: {1) 2,080 Hours of Part Time equals to 1 Fuff Time Equivalent
Source: City of Temple City Administrative Services Department
112
CITY OF TEMPLE CITY
Operating Information
Operating Indicators by Function ~ Last Ten Fiscal Years
2008 2009 2010 2011 2012 2013 2014 2015 2016 20171
Public Safety:
Arrests 559 411 514 949 1,105 852 626 758 535 548
Parking Citations 6,947 6,879 12,681 9,024 9,926 10,025 10,260 9,919 S,288 9,946
Public Works:
Sewers new connections 55 30 36 25 30 59 94 106 82 87
Parks & Recreation:
Number of recreation classes 341 363 330 390 400 368 380 374 326 320
Number of facility rentals 1,050 1,076 1,179 1,083 1,110 1,178 1,072 1,254 972 1,057
Source: City of Temple City Community Development Department
City of Temple City Parks & Recreation Department
los Angeles County Sheriff Department
113
CITY OF TEMPLE CITY
Operating Information
Capital Asset Statistics by Function/Program
2008 2009 2010 2011 2012 2013 2014 2015 2016 20171
Public Works:
Miles of arterial streets maintained 14 14 14 14 14 14 14 14 14 14
Miles of non·arterial streets maintained 57 57 57 57 57 57 57 57 57 57
Miles of storm drain maintained 2 2 2 2 2 2 2 2 2 2
Number of traffic signals 39 39 39 39 39 39 39 39 39 39
Number of street lights 364 364 364 364 364 706 706 706 706 706
Parks & Recreation:
Number of parks 2 2 2 2 2 2 2 2 2 2
Total park acreage 19 19 19 19 19 19 19 19 19 19
Number of baseball/sofball diamonds 2 2 2 2 2 2 2 2 2 2
Number of community centers 1 1 1 1 1 1 1
Number of tennis courts 7 7 7 7 7 7 7 7 7 7
Number of basketball courts 2 2 2 2 2 2 2 2 2 2
Source: City of Temple City Community Development Department
City of Temple City Parks & Recreation Department
114
ATTACHMENT B
CITY OF TEMPLE CITY
INDEPENDENT ACCOUNTANT' REPORT ON
APPLYING AGREED-UPON PROCEDURES RELATED TO THE
ARTICLE Xlll-8 APPROPRIATIONS LIMIT CALCULATION
FOR THE FISCAL YEAR ENDED JUNE 30, 2017
This agreed-upon procedures engagement was conducted in accordance with attestation standards established by
the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an
examination or review, the objective of which would be the expression of an opinion or conclusion, respectively,
on the Appropriations Limit calculation. Accordingly, we do not express such an opinion or conclusion. Had we
performed additional procedures, other matters might have come to our attention that would have been repot1ed to
you. No procedures have been performed with respect to the determination of the appropriation limit for the base
year, as defined by Article XIII-B of the California Constitution.
This report is intended solely for the information and use of the City Council and management of the City and is
not intended to be and should not be used by anyone other than those specified parties.
~~~~ v~~ ~~w
Rancho Cucamonga, California
December 28, 2017
2
ATTACHMENT C
INDEPENDENT AUDITORS' REPORT
ON INTERNAL CONTROL OVER FINANCIAL REPORTING
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the
results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on
compliance. This report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering the entity's internal control and compliance. Accordingly, this communication is not
suitable for any other purpose.
~ ~I 7>'/ ~ ~/_L/
Rancho CucamonJa, California
December 28, 2017
2
AUDITOR'S COMMUNICATION
TO THE CITY COUNCIL
ATTACHMENT D
Certain financial statement disclosures are pm1icularly sensitive because of their significance to financial
statement users. The most sensitive disclosure affecting the financial statements was:
The disclosure of the City's cost-sharing multiple employer defined benefit pension plan, net
pension liability, and related deferred inflows and outflows of resources, and pension expense, in
Note 9 to the financial statements. The valuation of the net pension liability and related deferred
outflows and inflows of resources are sensitive to the underlying actuarial assumptions used,
including but not limited to, the investment rate of return and discount rate. As disclosed in Note
9, a I% increase or decrease in the discount rate has a material effect on the City's net pension
liability.
The financial statement disclosures are neutral, consistent, and clear.
Difficulties Encountered in Pe1jorming the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit,
other than those that are clearly trivial, and communicate them to the appropriate level of management.
Management has corrected all such misstatements. In addition, none of the misstatements detected as a result of
audit procedures and corrected by management were material, either individually or in the aggregate, to each
opinion unit's financial statements taken as a whole.
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing
matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the
auditor's report. We are pleased to repot1 that no such disagreements arose during the course of our audit.
Management Representations
We have requested certain representations from management that are included in the management representation
letter dated December 28, 2017.
Management Consultations wUh Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting matters,
similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an
accounting principle to the City's financial statements or a determination of the type of auditor's opinion that may
be expressed on those statements, our professional standards require the consulting accountant to check with us to
determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with
other accountants.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing
standards, with management each year prior to retention as City's auditors. However, these discussions occurred
in the normal course of our professional relationship and our responses were not a condition to our retention.
Other Matters
We applied certain limited procedures to management's discussion and analysis, schedule of funding progress,
schedule of prop01iionate share of the net pension liability, and schedule of contributions, which are required
supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of
inquiries of management regarding the methods of preparing the information and comparing the information for
consistency with management's responses to our inquiries, the basic financial statements, and other knowledge
we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an
opinion or provide any assurance on the RSI.
We were engaged to report on combining and individual nonmajor fund statements, and the budgetary
comparison schedules, which accompany the financial statements but are not RSI. With respect to this
supplementary information, we made certain inquiries of management and evaluated the form, content, and
methods of preparing the information to determine that the information complies with accounting principles
generally accepted in the United States of America, the method of preparing it has not changed from the prior
period, and the information is appropriate and complete in relation to our audit of the financial statements. We
compared and reconciled the supplementary information to the underlying accounting records used to prepare the
financial statements or to the financial statements themselves.
We were not engaged to report on the introductory and statistical sections, which accompany the financial
statements but are not RSI. Such information has not been subjected to the auditing procedures applied in the
audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on
it.
Restriction on Use
This information is intended solely for the information and use of the Mayor and Members of the City Council
and management of the City and is not intended to be, and should not be, used by anyone other than these
specified patiies.
~ ?;::.-, t>, ~ ~~w
Rancho Cucamonga/California
December 28, 2017