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Home My WebLink About2013 02 20NOTICE is HEREBY GIVEN that a Special Meeting is hereby called to be held on FEBRUARY 20, 2013 at 5:30 PM. at City Hall — 3rd Floor Conference Room 307, 14403 East Pacific Avenue, Baldwin Park, CA 91706. Said Special Meeting shall be for the purpose of conducting business in accordance with the attached Agenda. Dated: February 14, 2013 Manuel Lozano Mayor AFFIDAVIT OF POSTING 1, Alejandra Avila, City Clerk of the City of Baldwin Park, certify that I caused the aforementioned Notice and Call of a Special Meeting to be delivered via email (hard copy to follow) to each Member and e-mail to the San Gabriel Valley Tribune, and that I posted said notice as required by law on February 14, 2013. Alejandra Avila City Clerk CITY HALL — 3rd Floor, s - Room 307 14403 BALDWIN PARK., CA 91706 • .: Manuel Lozano Monica Garcia Marlen Garcia Ricardo Pacheco Susan Rubio - Mayor - Mayor Pro Tem - Councilmember - Councilmember - Councilmember PLEASE TURN OFF CELL PHONES AND PAGERS WHILE MEETING IS IN PROCESS POR FAVOR DE APAGAR SUS TELEFONOS CEL ULARES Y BEEPERS DURANTE LA JUNTA PUBLIC COMMENTS COMENTARIOS DEL PUBLICO The public is encouraged to address the City Se invita al publico a dirigirse al Concilio o cualquiera Council or any of its Agencies listed on this otra de sus Agencias nombradas en esta agenda, agenda on any matter posted on the agenda or para hablar sobre cualquier asunto publicado en la on any other matter within its jurisdiction. If you agenda o cualquier tema que este bajo su jurisdiccidn. wish to address the City Council or any of its Si usted desea la oportunidad de dirigirse al Concilio o Agencies, you may do so during the PUBLIC alguna de sus Agencias, podra hacerlo durante el COMMUNICATIONS period noted on the periodo de Comentarios del Ptiblico (Public agenda. Each person is allowed three (3) Communications) anunciado en la agenda. A cada minutes speaking time. A Spanish - speaking persona se le permite hablar por tres (3) min utos. Hay interpreter is available for your convenience. un interprete para su conveniencia. CITY COUNCIL SPECIAL MEETING — 5:30 P.M. CALL TO ORDER ROLL CALL: Council Members: Marlen Garcia, Ricardo Pacheco, Susan Rubio, Mayor Pro Tern Monica Garcia and Mayor Manuel Lozano PUBLI%"COC MMUN COMMUNICATIONS Three (3) minute speaking time limit Tres (3) minutos sera el limite para hablar THIS IS THE TIME SET ASIDE TO ADDRESS THE CITY COUNCIL PLEASE NOTIFY THE CITY CLERK IF YOU REQUIRE THE SERVICES OF AN INTERPRETER No action may be taken on a matter unless it is listed on the agenda, or unless certain emergency or special circumstances exist. The legislative body or its staff may: 1) Briefly respond to statements made or questions asked by persons; or 2) Direct staff to investigate and/or schedule matters for consideration at a future meeting. [Government Code §54954.2] ESTE ES EL PERIODO DESIGNADO PARA DIRIGIRSE AL CONCILiO FAVOR DE NOTIFICAR A LA SECRETARIA SI REQUIERE LOS SERVICIOS DEL INTERPRETS No se podra tomar acci6n en algdn asunto a menos que sea incluido en la agenda, o a menos que exista algbna emergencia o circunstancia especial. El cuerpo legislativo y su personal podran: 1) Responder brevemente a declaraci6nes o preguntas hechas por personas; o 2) Dirigir personal a investigar y10 fijar asuntos para tomar en consideraci6n en juntas proximas. [Codigo de Gobierno §54954.2] RECESS TO CLOSED SESSION 1. CONFERENCE WITH LABOR NEGOTIATOR (GC §54957.6) Agency Negotiators: Vijay Singhal, Chief Executive Officer and other representatives as designated Employee Organizations: SEIU; Clerical; Professional and Technical Employees; Police Management Employees; Confidential Employees; Confidential Management and the Baldwin Park Police Officer's Association; Un-represented employees; and part- time employees. 2. CONFERENCE WITH LEGAL COUNSEL — EXISTING LITIGATION (GC§54956.9 (d)(1)) Eddie Avakian, Case No. 2010107078 3. CONFERENCE WITH LEGAL COUNSEL — EXISTING LITIGATION (GC§54956.9 (d)(1)) Case: Adams, et al v. City of Baldwin Park, et al, CV1 2-00512 I Allejandra Avila, City Cierli of the City of Baldwin Pad- hereby Certify under penalty of perjury under t1ie laws of tl: -�°, Cute ^f ��l7fn�- .�::.-. that the f:�a °^'= ° - ass nfla .r�K� —t-d nn tb— 04- LT. ll :. zu ti�.�s - - .i�.ng €a.e.xa not less than 24 hours prior to the meeting on February 14, 2013. Alejandra Avila City Clerk PLEASE NOTE: Copies of staff reports and supporting documentation pertaining to each item on this agenda are available for public viewing and inspection at City Hall, 2nd Floor Lobby Area or at the Los Angeles County Public Library in the City of Baldwin Park. For further information regarding agenda items, please contact the office of the City Clerk at (626) 813 -5204 ore -mail rcaballero@baldwinpark.com. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the Public Works Department or Risk Management at (626) 960 -4011. Notification 48 hours prior to the meeting will enable staff to make reasonable arrangements to ensure accessibility to this meeting. (28 CFR 34.102.104 ADA TITLE II) O c FEBRUARY 20,2013 11 PM • I I I 1 • Baldwin Park, 91706 t (626'960 0) vo -40111 10 & r Tkyj 111 1h P> Ar R- K Manuel Lozano - Mayor Monica Garcia - Mayor Pro Tem Marlen Garcia - Council Member Ricardo Pacheco - Council Member Susan Rubio - Council Member PLEASE TURN OFF CELL PHONES AND PAGERS WHILE MEETING IS IN PROCESS POR FAVOR DE APAGAR SUS TELEFONOS CELULARES Y BEEPERS DURANTE LA JUNTA PUBLIC COMMENTS The public is encouraged to address the City Council or any of its Agencies listed on this agenda on any matter posted on the agenda or on any other matter within its jurisdiction. If you wish to address the City Council or any of its Agencies, you may do so during the PUBLIC COMMUNICATIONS period noted on the agenda. Each person is allowed three (3) minutes speaking time. A Spanish speaking interpreter is available for your convenience. COMENTARIOS DEL PUBLICO Se invita al pGblico a dirigirse al Concilio o cualquiera otra de sus Agencias nombradas en esta agenda, para hablar sobre cualquier asunto publicado en la agenda o cualquier tema que este bajo su jurisdiccion. Si usted desea la oportunidad de dirigirse al Concilio o alguna de sus Agencias, podra hacerlo durante el periodo de Comentarios del Publico (Public Communications) anunciado en la agenda. A cada persona se le permite hablar por tres (3) minutos. Hay un interprete para su conveniencia. .r�i7" ✓ra ?tr..6 V.7 %.. 0,e v Cr, ' a . e o ;�,a tF CITY COUNCIL REGULAR MEETING — 7:00 PM . -am I I g ky'Lelevil g 0 1 0 Council Members: Marlen Garcia, Ricardo Pacheco Susan Rubio, Mayor Pro Tern Monica Garcia and Mayor Manuel Lozano This is to announce, as required by Government Code section 54954.3, members of the City r, Council are also members of the Board of Directors of the Community Development Ljo ... ;- A-4- Finance A - .i4. -_ -;L- -, - - " ich - - con - urr - - ti. - - vening with `11- %a%j 11�";riwi i j I u0ii 19 Authority and 1 1 i R, i-%UL I Ity VVI ll Of E::� U U1111 Gull I with the City Council this evening and each Council Member is paid an additional stipend of $75 for attending the CDC meeting, $30 for attending the Housing Authority meeting and $50 for attending the Finance Authority meeting. PROCLAMATIONS, COMMENDATIONS & PRESENTATIONS • Recognition of outgoing Recreation & Community Services Student Commissioner, Destiney Singleton. PUBLIC COMMUNICATIONS Three (3) minute speaking time limit Tres (3) minutos sera el limite para hablar THIS IS THE TIME SET ASIDE TO ADDRESS THE CITY COUNCIL PLEASE NOTIFY THE CITY CLERK IF YOU REQUIRE THE SERVICES OF AN INTERPRETER No action may be taken on a matter unless it is listed on the agenda, or unless certain emergency or special circumstances exist. The legislative body or its staff may: 1) Briefly respond to statements made or questions asked by persons; or 2) Direct staff to investigate and /or schedule matters for consideration at a future meeting. [Government Code §54954.2] ESTE ES EL PERIODO DESIGNADO PARA DIRIGIRSE AL CONCILIO FAVOR DE NOTIFICAR A LA SECRETARIA SI REQUIERE LOS SERVICIOS DEL INTERPRETS No se podra tome acci6n en algOn asunto a menos que sea incluido en la agenda, o a menos que exista algOna emergencia a circunstancia especial. El cuerpo legislativo y su personal podran: 1) Responder brevemente a declaraci6nes o preguntas hechas por personas; o 2) Dirigir personal a investigar y10 fijar asuntos para tomar en consideraci6n en juntas proximas. [Codigo de Gobierno §54954.2] City Council Agenda — FEBRUARY 20, 2013 Page 2 CONSENT CALENDAR All items listed are considered to be routine business by the City Council and will be approved with one motion. There will be no separate discussion of these items unless a City Councilmember so requests, in which case, the item will be removed from the general order of business and considered in its normal sequence on the agenda. 1. WARRANTS AND DEMANDS Staff recommends the City Council ratify the attached Warrants and Demands. 3. CITY OF BALDWIN PARK'S COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDING JUNE 30, 2012 It is recommended that the City Council receive and file the City of Baldwin Park's Comprehensive Annual Financial Report for the fiscal year ended June 30, 2012. 4. RESOLUTION NO. 2013 -003 AND RESOLUTION SA 2013 -001 IN REGARDS TO A LOAN FROM THE CITY OF BALDWIN PARK TO THE SUCCESSOR AGENCY FOR THE PAYMENT OF A PORTION OF THE FISCAL YEAR 2013 -2014 ENFORCEABLE OBLIGATIONS It is recommended the City Council and the Successor Agency Governing Body adopt the following Resolutions entitled: 1. Resolution No. 2013 -003: "A RESOLUTION OF THE CITY OF BALDWIN PARK PROVIDING A LOAN TO THE SUCCESSOR AGENCY TO THE COMMUNITY DEVELOPMENT COMMISSION TO PAY A PORTION OF THE FISCAL YEAR 2013 -2014 ENFORCEABLE OBLIGATIONS ", and; 2. Resolution No. SA 2013 -001: "A RESOLUTION OF THE BALDWIN PARK SUCCESSOR AGENCY TO THE COMMUNITY DEVELOPMENT COMMISSION ACCEPTING A LOAN FROM THE CITY OF BALDWIN PARK TO PAY A PORTION OF THE FISCAL YEAR 2013 -2014 ENFORCEABLE OBLIGATIONS ". 5. TREASURER'S REPORT: DECEMBER 2012 Staff recommends that the City Council receive and file the December 2012 Treasurer's Report. City Council Agenda — FEBRUARY 20, 2013 Page 3 CONSENT CALENDAR All items listed are considered to be routine business by the City Council and will be approved with one motion. There will be no separate discussion of these items unless a City Councilmember so requests, in which case, the item will be removed from the general order of business and considered in its normal sequence on the agenda. Adopt a Recognized Obligation Payment Schedule (ROPS) 13-14A for the period of July 1, 2013 through December 31, 2013; and �tsvFit a o.. vU. Z- .�Vi o,y.:i at.y i iui a iP� oioi� �tiVC ucatit� i viii r isi,di Year 2V I'D- Fit and Direct staff to proceed with submitting the draft BOPS 13 -14A for approval to the Oversight Board; and 4. Send the approved RODS to the County Administrative Officer, County Auditor Controller, the State Controller and Department of Finance; and 5. Instruct staff to post the approved ROPS 13 -14A on the City's website 2. RESOLUTION NO. 2013-003 AND RESOLUTION SA 2013-001 If% REGARDS TO A LOAN OF PARK TO THE SUCCESSOR AGENCY FOR THE PAYMENT OF • OF .- 2013-2014 ENFORCEABLE OBLIGATIONS It is recommended the City Council and the Successor Agency Governing Body adopt the following Resolutions entitled: 1. Resolution No. 2013 -003: "A RESOLUTION OF THE CITY OF BALDWIN PARK PROVIDING A LOAN TO THE SUCCESSOR AGENCY TO THE COMMUNITY DEVELOPMENT COMMISSION TO PAY A PORTION OF THE FISCAL YEAR 2013 -2014 ENFORCEABLE OBLIGATIONS ", and; 2. Resolution No. SA 2013 -001: "A RESOLUTION OF THE BALDWIN PARK SUCCESSOR AGENCY TO THE COMMUNITY DEVELOPMENT COMMISSION ACCEPTING A LOAN FROM THE CITY OF BALDWIN PARK TO PAY A PORTION OF THE FISCAL YEAR 2013 -2014 ENFORCEABLE OBLIGATIONS ". City Council Agenda — FEBRUARY 20, 2013 Page 4 RIII COMMUNICATIONS Request by Councilmember Ricardo Pacheco for discussion & direction to staff on the ~ Consideration and implementation to administer Foreclosed Property Registration P0g[80O. Request by Councilmember Marlen Garcia for discussion & direction to staff on the Send letter Df support from Council to Congress demanding that they reauthorize \AWA (violence Against Women Act) and support the protection Of[GBT Americans and new 0 2011-5 State of the City Address program. ADJOURNMENT CERTIFICATION 1, 4lej@Odra Avila, City Clerk of the City of Baldwin Park hereby certify under penalty of perjury under the l@VVS of the State of California, that the foregoing agenda was posted on the [|h« Hall bulletin board not less than 72 hours prior tOthe Ol88fiOg. [>ah8d this 14"' day Of February 2013. /\l j8ndD8/\VilG City Clerk PLEASE NOTE: Copies of staff reports and supporting documentation pertaining to each item on this agenda are available for public viewing and inspection at City Hall, +m Floor Lobby Area nrcd the Los Angeles County Public Library in the City of Baldwin Park. For further information regarding agenda ihemo, please contact the office of the City Clerk at (626) 813-5204 or via e-mail otrcaba||aro@ba|dwinpork.00m. In oomp||onma with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the Public Works Department or Risk Management at (626) 060-4011. Notification 48 hours prior to the meeting will enable staff to make reasonable arrangements to ensure accessibility to this meeting. (28CFR34.1O2.1O4ADATITLE ||) City Council Agenda - FEBRUARY 20, 2013 Page 5 i. 1 - to . a • s . r The purpose of this report is for the City Council to ratify the payment of Warrants and Demands against the City of Baldwin Park. BACKGROUND AND DISCUSSION: The attached Claims and Demands report format meets the required information in accordance with the Government Code. Staff reviews requests for expenditures for budgetary approval and for authorization from the department head or its designee. The report provides information on payments released since the previous City Council meeting; the following is a summary of the payments released: 1. The payroll of the City of Baldwin Park consisting of check numbers 195226 — 195247. Additionally, Automatic Clearing House (ACH) Payroll deposits were made on behalf of City Employees from control numbers 226747 — 226991 for the period of January 06, 2013 through January 19, 2013 inclusive; these are presented and hereby ratified, in the amount of $409,650.82. 2. General Warrants, including check numbers 193993 to194177 inclusive, in the total amount of $1,456,120.65 constituting claims and demands against the City of Baldwin Park, are herewith presented to the City Council as required by law, and the same hereby ratified. Pursuant to Section 37208 of the Government Code, the Chief Executive Officer or designee does hereby certify to the accuracy of the demands hereinafter referred to and to the availability of funds for payment thereof. Staff recommends City Council ratify the attached Warrants and Demands. F 4A 001-1 4. 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I I UI ft 41 00 w a 0 Ca �A w ft d, �A 0 0 w C, 00 1& 10, 0 410 o", 0. o� 0 Aek 0 COW tl 0 4 4,�, J 't� -4 .0 '1 co -4 C� -j 0,4 -1 174 i V, �j A. a w -a "t 4 m ftt m A 'o 40 t4 9* k4 "t k* "t, S Nk oll V4 �m 0 w 0 a v v Z, C, 'p 44 t4 z Rgn o' fol F , , 4 2 p 44 � 'i o FE I 5 5W im i I . Ann A v ro V 0 M I a u IIA I LP a'S 0 Co IA In I I R %r--A CITY OF BALDWIN PARK STAEf� �PT, .... Ul I I Uvulmu L-AGENDA SUBJECT: SECOND READING AND ADOPTION OF ORDINANCE No. 1357: "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BALDWIN PARK AMENDING SECTION 53.11 OF THE BALDWIN PARK MUNICIPAL CODE PERTAINING TO CONSTRUCTION AND RAF%1 I A A r-- ORA I 1W P%%;IL-lvl DI DEP V.,.,,lr%N OSITS." DE ITION MATER, ,LS MAN ENT VER= iRIM • To introduce for second reading and adoption Ordinance No. 1357 revising section 53.11 of the Baldwin Park Municipal Code (BPMC) relating to Construction and Demolition Materials Management. At its meeting on February 6, 2013, the City Council introduced Ordinance No. 1357 for a first reading. For the ordinance to become effective, it must be adopted upon its second reading. If adopted, the ordinance will take effect thirty (30) days from the date of adoption. RECOMMENDATION It is recommended the City Council conduct a second reading by title only and adopt ORDINANCE NO. 1357, "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BALDWIN PARK AMENDING SECTION 53.11 OF THE BALDWIN PARK MUNICIPAL CODE PERTAINING TO CONSTRUCTION AND DEMOLITION MATERIALS MANAGEMENT DIVERSION DEPOSITS". Attachment: 1) ORDINANCE NO. 1357, "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BALDWIN PARK AMENDING SECTION 53.11 OF THE BALDWIN PARK MUNICIPAL CODE PERTAINING TO CONSTRUCTION AND DEMOLITION MATERIALS MANAGEMENT DIVERSION DEPOSITS". THE CITY COUNCIL OF THE CITY OF BALDWIN PARK HEREBY ORDAIN i' SECTION 1. Section 53.11 of the Baldwin Park Municipal Cede is hereby amended, in its entirety, to read as follows: Except as set forth in subsection (B) below, each applicant for a permit for a covered project shall submit, along with the C &DMMP, a diversion security deposit in accordance with the foiiowing: (A) For a covered project with a valuation of $5,000 or greater, the amount of the diversion security deposit shall be equal to 3% of the total project valuation, but no more than $15,000 nor less than $500. (B) For city projects, no deposit shall be required, but the contractor must show evidence of compliance and adherence to the C &DMMP prior to receiving payment of the final retention amount for the project. SECTION 2. This ordinance shall go into affect and be in full force and operation from and after thirty (30) days after its final reading and adoption. APPROVED, and ADOPTED this day of , 2013. Manuel Lozano, Mayor STATE OF CALIFORNIA COUNTY • LOS ANGELES ss. CITY OF BALDWIN PARK 1, Alejandra Avila, City Clerk • the City of Baldwin Park, do hereby certify that the foregoing ordinance was introduced at a regular meeting of the City Council held • 2013, and was adopted • the City Council at its regular meeting held on 2013, by the following vote • the Council: . .�-e" - OU"LgIEMBERS Nut-0. CU Nk..'i 1vir-Mbr- 0". ABSENT: COUNCILMEMBERS: ABSTAIN: COUNCILMEMBERS: Alejandra Avila City Clerk DATE: February 20, 2013 SUBjECT: City of Baldwin Park's Comprehensive Annual 'Financial Report f the Fiscal Year ending June 30, 2012 1 The purpose of this report is to present the City's Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June 30, 2012. -T ,Tq.rce-T�M The CAFR represents the financial statements of the City and it includes a summary of all assets, liabilities, fund balances, revenues and expenses. The CAFR is composed of three main sections, an introductory section, the financial section and the statistical section; the CAFR is attached for your review. Vasquez & Company LLP audited the City's financial statements for fiscal year ended June 30, 2012 and rendered an unqualified opinion. The purpose of the independent audit was to provide reasonable assurance that the financial statements of the City of Baldwin Park for the fiscal year ended June 30, 2012, are free of material misstatements. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The financial statements are prepared in accordance with Generally Accepted Accounting Principles (GAAP) as promulgated by the Government Accounting Standards Board (GASB). The Government Finance Officers Association of the United States and Canada (GFOA) awarded a "Certificate of Achievement for Excellence in Financial Reporting" to the City of Baldwin Park for its Comprehensive Annual Financial Report for the fiscal year ended June 30, 2011. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of State and local government financial reports. The report must satisfy both generally accepted accounting principles and applicable legal requirements. Staff has submitted the June June 30, 2012 CAFR Staff Report February 20, 2013 Page 2 30, 2012 CAFR to the GFOA for another award and it is anticipated that once again the CAFR will earn this prestigious certificate. I The Comprehensive Annual Financial Report (CAFR) was completed in accordance with the Government Finance Officers Association guidelines and recommended format. The City Council may note that the report provides statistical data at the end Of the report and that the Management's Discussion and Analysis outlines the City's financial highlights and overviews for Fiscal Year ending June 30, 2012. The City accounts for its transactions in various individual funds of which the General Fund is considered the Chief Operating Fund of the City. Other funds are restricted due to the respective funding sources and are set up separately based on the purpose of the fund. The folinlAlinn highlights information on the General Piinri and nrnwirla-z Z1 highlights ..0i". . . -1 — �1. - . I— information nn the overall qtqtii-q of the City operations Aq reported nn the June 'In 2012 CAFR: • General Fund Audited Cash • General Fund Revenues and Expenditures • General Fund Unreserved Fund Balance • Governmental Revenues by Source • Governmental Expenses and Program Revenues General Fund Audited Cash As of June 30, 2012 the audited cash balance was $5,157,618 which represented a decrease of $388,798 as compared to the previous fiscal year. The following chart provides an overview of the cash balances as of June 30th for each of the last seven fiscal years: $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 2006 2007 2008 2009 2010 2011 2012 As noted above, the City has been able to maintain its General Fund's cash balance around $5 million in the last four years and has significantly increased its cash position since fiscal year 2006 (and throughout the latest fiscal crisis). It is important for the City to maintain cash reserves for cash flow purposes since major revenues are received in June 30, 2012 CAFR Staff Report February 20, 2013 Page 3 the latter half of the fiscal year. In addition, a healthy cash balance is necessary to cover contingencies and unexpected expenses related to possible disasters. General Fund Revenues and Expenditures The following provides a brief overview of General Fund revenues and expenditures trends, including transfers in and out (before any "Special Items ") over the last seven years. (in millions) $29.00 $28.00 $27.00 -- •--------- - - - - -- ------ - - - - -- t?F nn $25.00 ...... . - - - - -- -- - ------------------------------- . $24.00 - - -- ------- $23.00 --•---• .......................•----•--••---•------...... ..---- ••--- •...---- •........... $22.00 2006 2007 2008 2009 2010 2011 2012 Revenues Expenditures As noted in the above trends, the city was impacted by the recession and it took a significant hit on its revenues during the 2008 to 2010 period. As noted above, the City has been able to curtail its expenditures thus ensuring that expenditures remained lower than revenues up to prior year. However, for this year expenditures exceeded expenditures by $992,884. This resulted in the decrease of the General Fund reserves. General Fund Unreserved Fund Balance The City has a done a great job in increasing its Unreserved General Fund over the last six fiscal years. However, at June 30, 2012, the City used its General Fund Reserves for the first time in seven years. At June 30, 2012, the ending unreserved Fund Balance as reflected in the Balance Sheet was $4,304,091, which represented a $1.6 million decrease from the previous year. The $4,304,091 is comprised of $2,477,618 committed to a 10% budget stabilization fund and $1,826,473 as unrestricted /unassigned fund balance. June 30, 2012 CAFR Staff Report February 20, 2013 Page 4 The following chart provides the General Fund's Unreserved Fund Balance over this period of time. Reserves - General Fund (Unreserved) The General Fund is also responsible for providing funding to other programs and services that are accounted for in other funds (such as the Self Insurance, Fleet Services, Information Technology, Parks and Summer Lunch Funds). A better measurement of the General Fund's overall financial condition is to review all of these funds combined. The following chart provides the combined General Fund, Supported and Subsidized Funds for the same period of time: Reserves - General Fund & Supported & Subsidized Funds (Unreserved) 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 -- - - 1,000,000 Actual 2006 Actual zoo? ',Actual 2008 Actual 2009 Actual 2010 Actual 2011 Actual il Fiscal Year t? Unreserved Fund Balance 894,854 793,678 2,947,044 ! 4,488,127 4,301,866 4,000,160 2,305,429 June 30, 2012 CAFR Staff Report February 20, 2013 Page 5 The combined fund balance has declined by $2 million since 2009. The decline is due to a deficit in the self insurance fund, which accounts for all liability, property, and worker's compensation claims. Numerous efforts had been made in the past to improve the performance of the city's insurance programs and to increase the reserves of the Self Insurance Fund. Between 2006 and 2009 the deficit in the Self Insurance Fund decreased significantly; however, since 2009 the deficit has increased primarily due to increased exposure levels of police related claims. Despite the increase in claims, the Self Insurance Fund deficit is almost of the deficit in 2005. Governmental Revenues by Source The City receives various revenues from all of its governmental funds. The following represents the composition of these governmental revenues by source as of June 30, / n A n /- U I /-: Revenue by Source .- GoVemmpntal Arfivities Interest 00/0 Other 3% Charges for Taxes Services 53% 80/0 Operating Grants and Contributions 26% Capital Grants and Contributions 10% As noted above, 53% of the City's major revenue source is comprised of taxes. These taxes include monies received from property taxes, sales taxes, tax increment, franchise taxes and utility user's taxes. Governmental Expenses and Program Revenues Within the governmental funds, there are some departments that generate revenues that directly offset some of the departmental expenses. In essence, expenses that are not offset by departmental generated revenues are paid by taxes and other sources of revenue shown in the pie chart in the previous section. This comparison is provided in the City's CAM and is reflected below: June 30, 2012 CAFR Staff Report February 20, 2013 Page 6 •- • r• I I 'P • The City remains cautious even though the recession has ended especially because it economic recovery is sluggish. In the past, the City has been able to offset decreases in revenues resulting from the economic downturn by carefully monitoring its expenditures. It has been able to balance the budget for the last few fiscal years and had ended in the positive; however, in fiscal year 2011/2012 and 2012/2013 the City is battling new challenges (such as increases in retirement costs and the need to fund retiree health) and the City had to use reserves to balance its budget. Redevelopment Agency All redevelopment agencies in the State of California were dissolved and ceased to operate as a legal entity as of February 1, 2012. The final seven months of activity of the redevelopment agency, prior to that date, continued to be reported in the governmental funds of the City. After the date of dissolution, the assets and activities of the dissolved redevelopment agency are reported in the successor agency fund, a fiduciary fund, in the financial statements of the City. There is no fiscal impact from this action. June 30, 2012 CAFR Staff Report February 20, 2013 Page 7 -ki 197-ATI I M It is recommended that the City Council receive and file the City of Baldwin Park's Comprehensive Annual Financial Report for the fiscal year ended June 30, 2012. City of Baldwin Park Comprehensive Annual Financial Report for the Year Ended June 30, 2012. Ilro2rroro 161 o7r"wp��O�04'oq C no] LTA I le MONO W Comprehensive Annual Financial Report City of Baldwin Park, California For the Fiscal Year Ended June 30, 2012 Prepared by the Department of Finance (This page intentionally left blank.) City of Baldwin Park Table of Contents PAGE INTRODUCTORY SECTION Letter of Transmittal i City Officials v Organization Chart vi Certificate of Achievement for Excellence in Financial Reporting vii Award of Financial Reporting Achievement viii FINANCIAL SECTION Report of Independent Auditors Management's Discussion and Analysis Basic Financial Statements Government -wide Financial Statements: Statement of Net Assets 16 Statement of Activities 17 Fund Financial Statements Balance Sheet — Governmental Funds 18 Reconciliation of the Governmental Funds Balance Sheet to the 73 Statement of Net Assets 21 Statement of Revenues, Expenditures and Changes in Fund Balances — 74 Governmental Funds 22 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities 24 Statement of Net Assets — Proprietary Funds 25 Statement of Revenues, Expenses and Changes in Fund Net Assets — Proprietary Funds 26 Statement of Cash Flows — Proprietary Funds 27 Statement of Fiduciary Funds 28 Statement of Changes in Fiduciary Net Assets — Successor Agency Funds 29 Notes to Financial Statements 30 REQUIRED SUPPLEMENTARY INFORMATION Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual — General and Major Special Revenue Funds 64 Schedule of Funding Progress 67 Notes to Required Supplementary Information 68 SUPPLEMENTARY INFORMATION Description of Nonmajor Governmental Funds 70 Combining Balance Sheet — Nonmajor Governmental Funds 73 Combining Statement of Revenues, Expenditures and Changes in Fund Balances — Nonmajor Governmental Funds 74 Combining Balance Sheet — Nonmajor Special Revenue Funds 76 Combining Statement of Revenues, Expenditures and Changes in Fund Balances — Nonmajor Special Revenue Funds 82 Combining Balance Sheet — Nonmajor Debt Service Funds 88 Combining Statement of Revenues, Expenditures and Changes in Fund Balances — Nonmajor Debt Service Funds 89 (This page intentionally left blank.) City of Baldwin Park Table of Contents PAGE SUPPLEMENTARY INFORMATION (CONTINUED) Supplementary Information (continued) Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual — Nonmajor Special Revenue Funds 90 Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual — Debt Service Funds 110 Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual - Capital Project Funds 114 Internal Service Funds Description of Internal Service Funds 116 Statement of Net Assets — Internal Service Funds 117 Statement of Revenues, Expenses and Changes in Fund Net Assets — Internal Service Funds 118 Statement of Cash Flows — Internal Service Funds 119 Fiduciary Funds Description of Fiduciary Funds 120 Statement of Changes in Assets and Liabilities - Fiduciary Funds 121 Report of Independent Auditors on Compliance and on Internal Control Over Financial Reporting Based on an Audit of Basic Financial Statements Performed in Accordance with Government Auditing Standards 122 STATISTICAL SECTION Net Assets by Component 127 Fund Balance of Governmental Funds 128 Change in Net Assets 129 Fund Balances of Governmental Funds 130 Changes in Fund Balances of Governmental Funds 131 Assessed Value and Estimated Actual Value of Taxable Property 132 Assessed Valuation by Tax District 133 Direct and Overlapping Property Tax Rates 135 Ten Principal Property Taxpayers 136 Property Tax Levies and Collections 137 Ratio of Outstanding Debt by Type 138 (This page intentionally left blank.) City of Baldwin Park Table of Contents PAGE STATISTICAL SECTION (continued) Computation of Legal Debt Margin 139 Direct and Overlapping Bonded Debt 140 Full -time and Part -time City Employees 141 Pledged- Revenue Coverage — Tax Allocation Bonds 142 Demographic Statistics 143 Operating Indicators by Function 144 Capital Assets Statistics by Function 145 Per Capita Cost — General Governmental Expenditures by Function 146 Construction Activity 147 Ten Principal Employers 148 (This page intentionally left blank.) December 26, 2012 Honorable Mayor and City Council City of Baldwin Park Baldwin Park, California It is our pleasure to submit for your information the Comprehensive Annual Financial Report (CAFR) of the City of Baldwin Park for the fiscal year ended June 30, 2012. Financial Condition and Overview As of June 30, 2012, the General Fund cash balance is $5.2 million and the total General Fund Reserves, is $4.3 million ($1.8 million is unassigned and $2.5 million is committed [based on the City's policy to maintain 10% of operating expenses as the minimum reserves for emergency purposes]). The City also has about $607,000 which has been separately reflected as "Assigned" in order to maintain these monies aside for possible reimbursements to the State. If this amount did not have to be set aside, the Reserves would be $4.9 million. Overall, although the General Fund Reserves have decreased from the previous year, they are still healthy; especially in an economy where many cities have depleted their reserves. The City was able to build its reserves which proved valuable during the big recession, a recession from which many cities, including ours, are still trying to recuperate. The City was also able to promote new businesses during these challenging economic times through its former Community Development Commission (the "Agency ") and was able to attract new companies that created new jobs and assisted in reducing economic blight. The following are some examples of businesses that were new at the beginning of the fiscal year: On June 29, 2011, a new 46,600 square foot Superior Grocers opened within the 13- acre shopping center located in the Central Business District Redevelopment Project Area. • Within the Baldwin Park Marketplace, 3 Men's Suits opened their store in February 2011 and Wells Fargo bank opened its new bank on June 26, 2011. • Fitness 19 opened its new facility on November 7, 2011 thus promoting healthy living while creating jobs. The City will continue to promote new business opportunities to the extent possible while it tries to combat the negative effects of the State of California against Redevelopment Agencies. As discussed in detail in Note 19 to the Financial Statements, the State has abolished all Redevelopment Agencies thus makina it difficult to attract new businesses. In addition, the Agency had to create a Successor Agency which will be responsible for "winding up" the Agency's obligations. However, this will be difficult as the State has changed the timing of revenues to only two times a year. This will and has already had an impact on the Agency's ability to pay its bond payments and other enforceable obligations. Financial Statements and Management's Responsibility The financial statements are prepared in accordance with Generally Accepted Accounting Principles (GAAP) as promulgated by the Government Accounting Standards Board (GASB). This report consists of management's representations concerning the finances of the City of Baldwin Park, California. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, City management has established a comprehensive internal control framework that is designed both to protect the City's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City's financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the City's comprehensive framework of internal controls have been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The City's financial statements have been audited by Vasquez & Company LLP; a public accounting firm, fully licensed and qualified to perform audits of the State and local governments within the State of California. The purpose of the independent audit was to provide reasonable assurance that the financial statements of the City of Baldwin Park, California for the fiscal year ended June 30, 2012, are free of material misstatements. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditors concluded, based upon the audit, that there was a reasonable basis for rendering an unqualified opinion that the City of Baldwin Park, California's financial statements for the fiscal year ended June 30, 2012, are fairly presented in conformity with GAAP. The independent auditors' report is presented as the first component of the financial section of this report. The independent audit of the financial statements of the City was part of a broader, federally mandated "Single Audit" designed to meet the special needs of Federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited government's internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards. These reports are available in the City's separately issued Single Audit Report. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD &A). This letter of transmittal is designed to compliment MD &A and the MD &A should be read in conjunction with it. Profile of the City of Baldwin Park The City of Baldwin Park was founded in 1887 and incorporated on January 25, 1956, under the general laws of the State of California. The City operates under Council -Chief Executive Officer form of government. The City's Mayor is elected at large every two years, and the City Council members are elected at large to four -year terms in alternate slates every two years. The City is located 17 miles east of Los Angeles, in the center of the San Gabriel Valley, and shares common boundaries with the cities of El Monte to the west, West Covina to the east and south and Irwindale to the north. Baldwin Park occupies 6.7 square miles. Infill residential development has increased the population from 50,554 in 1980 to 81,604 in 2010. The City is diversified with single family and multiple family housing development, commercial development and industrial development. Major businesses include Home Depot, Wal -Mart, Nichols Lumber & Hardware, Target, In N Out Burgers and Harley Davidson Sales. City Services The City provides a full range of municipal services. Services provided include police, street maintenance and improvements, transit, storm drains, recreation, public improvements, planning, zoning, and general administrative and support services. Financial data for all funds through which services are provided by the City have been included in this report based on the criteria adopted by the Governmental Accounting Standards Board (GASB), which is the authoritative body in establishing U.S. generally accepted accounting principles (GAAP) for state and local governments. As required by GAAP, these financial statements present the City (the primary government) and its component units (entities for which the government is considered to be financially accountable). Blended component units (although legally separate entities) are in substance part of the government's operations, and so data from these units are combined with data of the primary government. Budget The City of Baldwin Park adopts a comprehensive budget by department prior to the start of the fiscal year on July 1. The budget is further detailed by cost center (division) and character of expenditure, defined as Contractual Services, Personnel Services, Maintenance and Operations, and Capital Outlay. The ledgers of the City and its component units are maintained by the line item detail or object of expenditure. However, all budgetary controls are exercised at the department and fund level. Revenues are estimated annually and measured against actual revenues earned. Employee Benefits The City provides its full -time and eligible part -time employees retirement benefits. Members and their beneficiaries are provided benefits through defined benefit pension plans for both public safety employees and miscellaneous employees. These plans are part of the California Public Employees' Retirement System (CaIPERS). The City contributes to the plans based on amounts determined by CalPERS actuaries. The City also contributes the employees' required contributions or a portion thereof on their behalf and for their account. The City also provides postretirement health benefits to its employees in accordance with agreements reached with the various employees bargaining groups. The City pays for retirees' health care premiums in these plans up to limits established in the agreements with the bargaining units. Additional information on the City's retirement and post - employment benefits can be found in Notes 13 and 14 in the notes to the financial statements. Local Economy and Economic Outlook The greatest recession since the great depression is officially over. However, unemployment remains high, some foreclosures continue, and the prices in the housing market are barely recovering. Due to reduced tax collections and decreased sales, local government revenues in California have not recuperated; thus many governments have had to face cuts and reductions in staffing, programs and services. Although the City of Baldwin Park experienced lower tax revenues due to the recession, the City was able to absorb the effects of the economic downturn as a result of City's previous efforts in implementing revenue and expenditure restructuring programs. However, because of significant increase (over $800,000) in retirement costs and a change in the policy related to impounding of vehicles in fiscal year 2010/2011, revenues were negatively impacted, and the City was faced with using reserves to balance its budget for the year ended June 30, 2012. As of year end, the City's General Fund expenditures exceeded revenues by almost $1 million because of lower revenues and because the City had to write off uncollectible grants that had been outstanding for over seven years that will not be collected. As of June 30, 2012, even with the use of reserves, the City was able to avoid significant impacts on services and programs. For the upcoming 2012/2013 fiscal year, the City adjusted its revenue projections to new expected levels or what has become the "new normal." The City had previously absorbed a significant portion of the CALPERS increases by eliminating all non -sworn vacancies and reducing certain operating expenses. For fiscal year 2012 -2013, the City is facing another budget gap of about $1 million. The City has started analyzing various options, including restructuring of employee benefits relating to retirement formulas and contributions, layoffs and reductions in programs in order to minimize the further use of reserves. These are tough choices and it will be difficult since the State of California's large spending deficits are on -going and the State will continue to be a threat to local governments as long as it continues to experience difficulties balancing its budget. GFOA Certificate of Achievement Award The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Baldwin Park for its Comprehensive Annual Financial Report for the fiscal year ended June 30, 2011. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of State and local government financial reports. To be awarded a Certificate of Achievement a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program's requirements, and we are submitting it to GFOA to determine its eligibility for another certificate. Acknowledgements The preparation of this CAFR reflects the hard work, talent, and commitment of the staff members of the Finance Department. This document could not have been accomplished without the high level of professionalism and dedication that they bring to the City of Baldwin Park. We sincerely appreciate the dedication and commitment that the Finance Staff members bring to the City. We would also like to express our appreciation to Vasquez & Company LLP, the City's independent auditors, who assisted and contributed to the preparation of the Comprehensive Annual Financial Report. Special acknowledgement is given to the Mayor and City Council for their support and interest in directing the financial affairs of the City in a responsible, professional and progressive manner. Respectfully submitted, iv CITY COUNCIL MANUEL LOZANO Mayor SUSAN RUBIO Mayor Pro Tem MARLEN GARCIA MONICA GARCIA RICARDO PACHECO Councilmember Councilmember Councilmember ADMINISTRATION MARIA CONTRERAS ALEJANDRA AVILA JOSEPH PANNONE City Treasurer City Clerk City Attorney EXECUTIVE TEAM VIJAY SINGHAL Chief Executive Officer LILI HADSELL Chief of Police LORENA QUIJANO MANUEL CARRILLO Director of Finance Director of Recreation and Community Services ►•j (This page intentionally left blank.) .I L III IR I i M I IL!l iii III J, Ati '111GOAR, Ir pro II �� ! ■!!:JII111��IC�;,�IIk�11111 ca (1) cu c 0 a� ca Q � ' � � ��i I s_ .5 �.+ 5 _ (This page intentionally left blank.) ■ 0 � � � � � e � 2 2 � PO � m E g � © ■ & � @ � � � Q ■ a $ � % E-( z � � � � � � � � � � � � � � � � � � � � e � a e 0 � A � �.� ■|k \ \$k. � !tt \� �$k 2 \#�� a&� ƒi ■$ |» /7J�2 6� § 7 23 -lam � � 2�$(% 2)QaK k � R , ƒ @ c :\ ca a� cu c 0 a� ca Q Report of Independent Auditors The Honorable City Council of the City of Baldwin Park, California We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Baldwin Park, California, as of and for the year ended June 30, 2012, which collectively comprise the City's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City of Baldwin Park's management. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Baldwin Park, California, as of June 30, 2012, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. As discussed in Note 19, the City of Baldwin Park has advanced money to the former redevelopment agency. No provision for uncollectible accounts was made as of June 30, 2012 in the accounting records of the City as management asserted that this advance is an enforceable obligation of the Successor Agency and that the Successor Agency has sufficient documentation to support this obligation. Accounting principles generally accepted in the United States of America require that the management's discussion and analysis and budgetary comparison information be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. (This page intentionally left blank.) Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Baldwin Park, California's financial statements as a whole. The introductory section, combining and individual nonmajor fund financial statements, and statistical section are presented for purposes of additional analysis and are not a required part of the financial statements. The combining and individual nonmajor fund financial statements are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the 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. In accordance with Government Auditing Standards, we have also issued our report dated December 26, 2012 on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the result of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. + 411-pl. L& Los Angeles, California December 26, 2012 2 (This page intentionally left blank.) City of Baldwin Park Management's Discussion and Analysis Year ended June 30, 2012 As management of the City of Baldwin Park ( "City "), we offer readers of the City's financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2012. Please read it in conjunction with the accompanying transmittal letter at the front of this report, and the basic financial statements, which follow this section. Financial Highlights ❖ The assets of the City exceeded its liabilities at June 30, 2012 by $148 million. This amount is referred to as the net assets of the City. Of this amount, $19 million is unrestricted net assets and may be used to meet the City's ongoing obligations to citizens and creditors. It's important to note that for the year ended June 30, 2011 (last year), unrestricted net assets had a balance of negative $15.7 million; the significant change is due to the discontinuation of the Community Development Commission (CDC) which resulted in transfers to a new Fiduciary Fund (thereby decreasing liabilities by 40.8 million). ❖ The City's net assets, before the "Extraordinary items" relating to the dissolution of the CDC, had a decrease of $4.3 million; basically total expenditures were greater than total revenues. Mainly this resulted from a $2.2 million decrease in tax increment previously received by the CDC, and decreases in other major revenues. For FY 2011 -12, General Revenues decreased by $3.8 million while Expenses decreased by $2.3 million over FY 2010 -11 levels. ❖ The City's net assets after the "Extraordinary items" relating to the dissolution of the CDC, actually increased by $42.3 million. The increase includes a positive $46.5 million relating to the dissolution and the $4.3 million excess in expenditures over general revenues. ❖ As of the close of the 2011 -12 fiscal -year, the City's governmental funds reported combined ending fund balances of $45.8 million, an increase of $7.4 million over the prior fiscal year. The City's internal service funds, which are not reported as part of the City's governmental funds, have a negative net assets of $1.7 million at June 30, 2012. ❖ As of June 30, 2012, the unassigned fund balance of the City's General Fund was $1.8 million and the committed fund balance was $2.5 million for a total of $4.3 million; this represents a decrease of $1.6 million from the prior year; part of the $1.6 million decrease, includes $607,000 which is now reflected as "Assigned." ❖ In the General Fund, revenues exceeded expenditures by $0.89 million, before other financing sources. After other financing sources, the General Fund reflected a negative $0.99 million in the net change in fund balance. ❖ The City's total long -term liabilities decreased by $40.8 million, or 52 %, during the fiscal year ended June 30, 2012, to a level of $37.8 million. Of the decrease, $40 million related to the CDC dissolution and amounts moved to the Fiduciary Funds. Overview of the Financial Statements This discussion and analysis are an introduction to the City's basic financial statements, which consist of three components: 1) government -wide financial statements, 2) fund financial statements, and 3) notes to the basic financial statements. This report also consists of supplementary information in addition to the basic financial statements. El City of Baldwin Park Management's Discussion and Analysis Year ended June 30, 2012 Government -wide Financial Statements. The government -wide financial statements are designed to provide readers with a broad overview of the City's finances, in a manner similar to a private - sector business. The statement of net assets presents information on all of the City's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The statement of activities presents information showing how the City's net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related 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 and earned but unused vacation leave). The government -wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities). The governmental activities of the City include general government, public safety, public works, community development, recreation, non - departmental, and interest on long -term debt. The government -wide financial statements include not only the City itself (known as the primary government), but also three legally separate entities, the former Baldwin Park Redevelopment Agency, the Baldwin Park Housing Authority, and the Baldwin Park Public Financing Authority. The City is financially accountable for these entities and financial information for these blended component units is reported within the financial information presented for the primary government itself. The government -wide financial statements can be found beginning on page 16 of this report. Fund Financial Statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance - related legal requirements. All of the City's funds can be divided into three categories: governmental funds, proprietary funds and fiduciary 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 on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating the City's near - term financial 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 financial decisions. Both the governmental fund balance sheet and the governmental fund statement of revenue, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. 5 City of Baldwin Park Management's Discussion and Analysis Year ended June 30, 2012 The City maintains 36 individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures and changes in fund balances for the General Fund, Housing and Community Development Fund, Future Development Fund, Housing Authority, and the Grants Fund, each of which are considered to be major funds. Data from the other 33 governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements in the nonmajor governmental funds supplementary information section of this report. The City adopts an annual appropriated budget for its general fund. A budgetary comparison statement has been provided for the general fund to demonstrate its compliance with this budget. The governmental fund financial statements can be found beginning on page 18 of this report. Proprietary Funds. The City maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business -type activities in the government -wide financial statements. The City uses an enterprise fund to account for its public housing operation. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City's various functions. The City uses internal service funds to account for vehicle operation and maintenance, information services and self- insurance activities, including general claims liability and workers' compensation insurance. Proprietary funds provide the same type of information as the government -wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the maintenance and operation of a public housing fund, which is considered a governmental fund in the government -wide financial statements. Conversely, the internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements in the supplementary information section of this report. The basic proprietary fund financial statements can be found beginning on page 25 of this report. Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government -wide financial statements because the resources of those funds are not available to support the City's own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The fiduciary fund financial statements can be found on page 28 of this report. Notes to the Basic Financial Statements. The notes to the basic financial statements provide additional information that is essential to a full understanding of the data provided in the government - wide and fund financial statements. The notes to the basic financial statements can be found beginning on page 30 of this report. Other Information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City's progress in funding its obligation to provide pension benefits to its employees and a comparison of budgeted to actual results for the general and major special revenue funds. Required supplementary information can be found beginning on page 68 of this report. The combining statements referred to earlier in connection with nonmajor governmental funds and internal service funds are presented immediately following the required supplementary information. C. City of Baldwin Park Management's Discussion and Analysis Year ended June 30, 2012 Combining and individual fund statements and schedules can be found beginning on page 74 of this report. Government -wide Financial Analysis Net assets. As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. In the case of the City, net assets were approximately $148 million as of June 30, 2012. Net assets increased $42 million, or 40 %, during fiscal year 2011 -12. Assets increased 1.0% and liabilities decreased by 49% compared to June 30, 2011. By far the largest portion of the City's net assets at June 30, 2012 ($99.9 million, or 67.4% of total net assets) reflects its investment in capital assets (e.g., land, infrastructure, buildings, machinery and equipment) less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens; these assets are not available for future spending. Although the City's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. ASSETS Cash and other assets Governmental Activities 2012 2011 $ 75,254,379 $ 69,248,711 Capital assets net of accumulated depreciation 115,650,845 119,512,421 LIABILITIES Current and other liabilities Long -term liabilities Total assets Total liabilities NET ASSETS Invested in capital assets, net of related debt Restricted Unrestricted 190,905,224 188,761,132 4,789,148 4,136,136 37,830,995 78,641,430 42,620,143 82,777,566 99,896,721 79,629,227 29,720,564 42,096,775 18,667,796 (15,742,436 Total net assets $ 148,285,081 105,983,566 As noted earlier, net assets may serve over time as a useful indicator of the City's financial position. In the case of the City, assets exceeded liabilities by $148 million at June 30, 2012. A portion of the City's net assets (20 %) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net assets, $18,667,796 may be used to meet the government's ongoing obligations to citizens and creditors. 7 City of Baldwin Park Management's Discussion and Analysis Year ended June 30, 2012 At the end of the current fiscal year, the City is able to report positive balances in all three categories of net assets, for the City as a whole. Governmental Activities. For fiscal year 2011 -12, governmental activities decreased the City's net assets by $4.2 million prior to accounting for $46.6 million in discontinued operations (relating to the CDC dissolution); the total change in net assets after the discontinued operations was $42.3 million. General Revenues Charges for services Grants and Contributions Taxes Sales taxes Property taxes Utility users taxes Tax increment Franchise taxes Othertaxes Investment income Other income Total Expenses General government Public safety Public works Community development Recreation services Net transfers out to fiduciary funds Interest and fiscal charges Change in net assets before special items Special items Gain on sale of properties Items related to payment of loans Total special items Extraordinary items Transfers of balances to fiduciary funds RDA dissolution transactions Total gain on extraordinary items Change in net assets Net assets, beginning Net Asset, ending 2012 Increase 2011 (Decrease) $ 4,040,314 $ 4,623,058 $ (582,744) 16,934,201 17,256,159 (321,958) 5,324,720 5,713,857 (389,137) 11,420,680 11,645,328 (224,648) 2,215,756 2,266,892 (51,136) 3,229,580 5,418,895 (2,189,315) 2,368,974 2,239,905 129,069 1,142,083 1,084,450 57,633 119,287 337,283 (217,996) 2,187,106 2,138,900 48,206 48,982,701 52,724,727 (3,742,026) 4,009,113 4,408,497 (399,384) 19,929,293 18,776,862 1,152,431 13,442,178 13,533,300 (91,122) 8,885,636 11,018,139 (2,132,503) 4,110,432 4,477,346 (366,914) 716,587 - 716,587 2,140,361 3,355,401 (1,215,040) 53,233,600 55,569,545 (2,335,945) (4,250,899) (2,844,818) (1,406,081) - 4,988,913 (4,988,913) - 383,889 (383,889) - 5,372,802 (5,372,802) 37,060,271 - 37,060,271 9,492,143 - 9,492,143 46,552,414 - 46,552,414 42,301,515 2,527,984 39,773,531 105,983,566 103,455,582 2,527,984 $ 148,285,081 $ 105,983,566 $ 42,301,515 �:3 City of Baldwin Park Management's Discussion and Analysis Year ended June 30, 2012 Key elements of both increases and decreases in fiscal year 2011/2012 are as follows: • The decrease in charges for services of $582,744 was related to less impound monies and due to the State taking away funding for Vehicle License Fees as of the June 30, 2011. • A decrease in the amount of grant monies received of $321,958 was experienced due to one -time ARRA monies received and spent in 2011 and due to a decrease in the amount of Housing Funds received during the year. • As expected, sales tax, property tax and utility user's tax, all decreased. Their decrease is attributable to the sluggish economy and to reductions in assessed values by the Assessor's Office; thus decreasing local property taxes. • Tax Increment had a significant decrease of $2.2 million which was due to the dissolution of the Agency that came about because of AB1x 26. • A decrease investment income of $217,996 reflects lower interest rate and lower loan interest repayments during the current fiscal year. • In terms of expenses, there was a decrease in General Government of $399,384 due to unfilled vacant positions that resulted during the year. • An increase in public safety of $1.2 million resulted from increases in workers compensation cost per the actuarial valuations and retirement related costs. • A decrease of $2.1 million in Community Development expenses reflected decreases in one- time expenditures that occurred in the previous year relating mainly to ARRA monies. • A decrease of $366,914 in Recreation Services is related to staff retirements and decreases in operational expenses, including one -time expenses that occurred in previous fiscal year. • The $716,587 increase in net transfers out to fiduciary funds is due to the CDC dissolution. • A decrease of $1.2 million in interest and fiscal charges is due to less interest accumulated between the Agency and City loans funds resulting from the dissolution of the Agency. In addition, the last payment for the 2001 Energy Conservation Bond was paid in 2011. • In fiscal year 2011, the City sold properties which resulted in a one -time gain from the sale of the property. • Extraordinary item reflects $46.6 million moved to the fiduciary funds due to the recent California regulations AB1x 26 that dissolved the Agency. 9 City of Baldwin Park Management's Discussion and Analysis Year ended June 30, 2012 Expenses and Program Revenues- Governmental Activities Revenues by Source- Governmental Activities Financial Analysis of the City's Funds As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance - related legal requirements. 10 City of Baldwin Park Management's Discussion and Analysis Year ended June 30, 2012 Governmental Funds. The focus of the City's governmental funds is to provide information on near -term inflows, outflows and balances of spendable resources. Such information may be useful in assessing the City's financing requirements. The City implemented GASB Statement #54 in fiscal year 2010 -2011. It substantially altered the categories and terminology used to describe "fund balance." The new categories are as follows: • Nonspendable fund balance (inherently nonspendable) • Restricted fund balance (externally enforceable limitations on use) • Committed fund balance (self- imposed limitations on use) • Assigned fund balance (limitation resulting from intended use) • Unassigned fund balance (residual net resources) Unassigned fund balance, previously referred to as unreserved fund balance, may serve as a useful measure of the City's net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the City's governmental funds reported combined ending fund balances of $45.8 million. Of the total fund balance, $11.6 million is Nonspendable of which $179,428 is related to long -term loans receivable, $11.1 million is for long -term advances to other funds, and $310,294 is for prepaid expenses; $27.7 million is Restricted of which $26.2 million is related to special funds, $1.5 million is for debt service, and $13,777 is for capital; $4.1 million is Committed of which $1.6 million is for the economic development fund and $2.5 is set aside specifically for general fund reserves of ten percent based on the operating budget; $606,926 is Assigned in order to maintain these monies aside for possible reimbursements to the State and $1.7 million is Unassigned. The General Fund is the chief operating fund of the City. At the end of the current fiscal year, the total fund balance is $16,084,269. Of this amount, $11.2 million is Nonspendable since its related to long -term advances to other funds and the monies are not available, $2.5 million is Committed as noted above to maintaining a ten percent minimum in reserves, $606,926 is Assigned, and $1.8 million is unassigned. As a measure of General Fund liquidity, it may be useful to compare the unassigned fund balance to total fund expenditures. General Fund unassigned fund balance represents 8% of total general fund expenditures of $22,548,214 (this represents decrease since last year this was 15 %). The following is the cash balance of the General Fund: $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 2006 2007 2008 2009 2010 2011 2012 The General Fund's Excess of revenues over expenditures was $885,409; this positive balance was attributed to lower personnel costs in departments which did not fill full -time vacancies that occurred during the fiscal year. The increase was despite decreases in revenues such as sales tax which was lower by $389,137 and a decrease in property tax of $224,648. In total, after other financing uses, the City's General Fund decreased by about $1 million (last year was $1.7) during the current fiscal year due to transfers made to support other funds especially the dissolution of the Community Development Commission (RDA) due the ABx126. 11 City of Baldwin Park Management's Discussion and Analysis Year ended June 30, 2012 Proprietary Funds. The City's proprietary funds provide the same type of information found in the government -wide financial statements, but in more detail. Enterprise Funds. Net assets of the enterprise fund totaled $590,935 which includes a small increase in net assets of $18,225 for the year ended June 30, 2012. Internal Service Funds. The City's internal service funds are an accounting device used to accumulate and allocate costs internally among the City's various functions. The City uses internal service funds to account for its self- insurance activities, including liability insurance, and workers' compensation insurance, vehicle operations and maintenance, and information services. As of June 30, 2012, net assets of the internal service funds had a deficit of $1,707,946. and a decrease in net assets of $214,920. The decrease in the current year's net assets resulted from an increase in the amount of reserves set -aside for the future payment of potential losses (related mainly to safety) to the City; the increase in reserves is based on current activity. The services provided by the internal service funds have been allocated to governmental functions, based on user percentages, in the government -wide financial statements. General Fund Budgetary Highlights In the General Fund, differences between the original budget and the final amended budget resulted in a slight increase in appropriation of about $98,000. Of this total, $48,481 was attributable to the public works budget due to the emergency HVAC repairs; also increase in other revenue of $50,000 and public safety (expenditure side) of $50,000 both for the replacement of a police car. Capital Asset and Debt Administration Capital Assets. The City's investment in capital assets for its governmental activities amounts to $115,650,845 (net of accumulated depreciation of $131,107,131) as of June 30, 2012. This investment in capital assets includes land, buildings, improvements other than building, infrastructure (roads, sidewalks, streetlights, etc.), and machinery and equipment. After reflecting the adjustments to capital assets for adoption of GASB 34, the total decrease in the City's investment in capital assets for the current fiscal year was $3,861,576 after depreciation. Capital Assets (Net of Accumulated Depreciation) June 30, 2012 and 2011 Land Buildings and improvements Equipment Vehicles and related equipment Infrastructure Construction in progress Total 2012 2011 $ 1,804,151 $ 1,804,151 20,532,066 20,559,184 1,603,989 1,697,020 398,094 588,917 83,406,476 90,677,426 7,906,069 4,185,726 115,650,845 $ 119,512,424 Additional information on the City's capital assets can be found in note 7 to the basic financial statements of this report. 12 City of Baldwin Park Management's Discussion and Analysis Year ended June 30, 2012 Debt Administration. At the end of the current fiscal year, the City had total bonded debt outstanding of $17.985 million. Of this amount, $9.29 million represents lease revenue bonds, $8.695 million represents pension obligation bonds used to finance the unfunded liability of the safety retirement system. Reduction from last year in the amount of $41.465 million was because of repayment of outstanding principal totaling $2.4 million; $21.415 million represents tax allocation bonds issued for redevelopment projects, and $18.410 million tax increment deferral due to the Los Angeles County were moved to the fiduciary fund due to the dissolution of RDA. Outstanding Debt June 30, 2012 and 2011 Bonded Indebtedness: Assessment district bonds $ Tax allocation and refunding bonds Pension obligation bonds Lease revenue bond Other long -term debt: Capital lease obligations Other post - employment benefits Compensated absences Los Angeles County deferrals Notes and loans payable 2012 2011 - $ 28,000 - 22,550,000 8,695,000 9,720,000 9,290,000 9,520,000 289,000 4,151,000 1,378,000 5,969,000 248,000 3,038,000 1,337,000 17,969,000 6,827,000 Total $ 29,772,000 $ 71,237,000 State statutes limit the amount of general obligation debt a governmental entity may issue to 15 percent of its total assessed valuation. The current debt limitation for the City is $170,800,365 which is significantly in excess of the City's outstanding general obligation debt. Additional information on the City's long -term liabilities can be found in note 9 to the basic financial statements of this report. Economic Factors and Next Year's Budget In the last few years, the nation experienced the greatest recession since the last depression. This has impacted all local governments including our City. However, in the years before the recession, we were able to successfully strategize on ways to combat future negative trends while also improving organizational effectiveness and program efficiencies. Thus our reserves gradually increased allowing us to fair much better than surrounding cities that had to use and deplete their reserves before the recession ended. The City has been lucky to have been able to attract some businesses during these tough economic challenges. This included the opening of a new 46,600 square foot Superior Grocers that opened within the 13 -acre shopping center located in the Central Business District Redevelopment Project Area and the opening of other businesses such as 3 Men's Suits, and Fitness 19. However, with the dissolution of the CDC, attracting new businesses will be difficult. 13 City of Baldwin Park Management's Discussion and Analysis Year ended June 30, 2012 As other local governments, the City experienced challenges due to the recession; mainly, the City's revenues were lower compared to the 2011/2012 budget and the City has now adjusted its revenues for the 2012/2013 budget to reflect the current economy. Any potential increases in certain revenues will be used to offset decreases in other revenues and /or offset expenditures increases. The biggest factor affecting us in 2011/2012 was the significant increase in CALPERS rates which forced the City to use its reserves to cover some of the increases; something it had not had to do in a very long time. We will be working diligently in 2013 to minimize any further use of reserves. Despite tough economic times, the City has continued its programs and the level of services it provides to the residents and the community. The City is also implementing programs to promote healthy living through partnerships and outreach. Nevertheless, in 2013, the City will have to start making tough decisions and we will have to review programs, staffing and any possible changes to our employee benefits. Request for Information This financial report is designed to provide a general overview of the City's finances for readers of the financial statements. Questions concerning any of the information in this report or request for additional financial information should be addressed to the Department of Finance, 14403 E. Pacific Avenue, Baldwin Park, CA 91706. 14 City of Baldwin Park Statement of Net Assets June 30, 2012 ASSETS Unrestricted cash and investments $ 36,812,529 Restricted cash and investments 1,688,255 Total cash and investments 38,500,784 Intergovernmental receivables 6,231,468 Property taxes receivable 268,155 Other receivables, net 49,727 Loans receivable 4,443,426 Advances to successor agency 18,427,954 Prepaids 330,642 Deferred charges 175,283 Pension asset, net of amortization 6,826,940 Capital assets not being depreciated Land $ 1,804,151 Construction -in- progress 7,906,069 Capital assets, net of accumulated depreciation Building and improvements 20,532,065 Equipment 1,751,161 Vehicles and related equipment 250,922 Infrastructure 83,406,477 115,650,845 Total assets 190,905,224 LIABILITIES Accounts payable 2,750,198 Accrued interest 206,087 Accrued other liabilities 622,885 Deposits 403,917 Due to other governmental agencies 7,070 Unearned revenues 798,991 Long -term liabilities: Due within one year 2,234,689 Due in more than one year 23,387,102 Other postemployment benefits 4,151,146 Insurance liabilities - current portion 1,350,000 Insurance liabilities - long -term portion 6,708,058 Total liabilities 42,620,143 NET ASSETS Invested in capital assets, net of related debt 99,896,721 Restricted for: Debt service 1,507,658 Community development 15,903,420 Public safety 1,852,717 Public works 10,262,083 Recreation services 194,686 Unrestricted 18,667,796 Total net assets $ 148,285,081 The notes to the financial statements are an integral part of these financial statements. 15 Y V1 N_ d N V CO) O m � � O N L C N O N O LO LO 00 (0 00 C m (C 00 — N M Lo C7 CD- a) y N U) 00 I— V M 00 0 O O C. 0 0) 00 co 00 V V V LO X C C (O LO (O V M I� N (O C N M Z U z w` O N co (o co ' V co O LO I— O N LO O LO O N M V) •V O V N (o Ln O aI L N LO LO N V V O L U) V U V) M co 00 (o N I— O y O r— CO CO 00 (O O N = (o V Lr ('7 (o C O) O) N Lo O (o O co N O N V 00 V CO C. O O V 00 N W V O C 00 V N LC EA EA N ) U V C N �p m C N O E U) U) V) L N U O N N U 2 > r m m O N Q N 0 0 _ O U fL0 V N. U m r m O U) 0 y > U U) U a c o a) c m c � o U m c E m rn � Z c in 0 i N .V .V E N �° o 0 N C -5-0 E U N N O U 0- U of Z LL i7 OOO V 0m LO r— (o rn 00 N 00 I— LO 00 O 00 O 00 O (o I— Lo M- I- O N N O) — 00 O V O) 00 LO N LO O) 00 O N N N (o V V= V O LO V co N co N I— = V O N tt•�GUFi N F N V Lo LON O NIN MlLnll (o O LC) O 00 00 O V Ln ('7 0) N I� O O N Lo 00 co V V O V EA EA N E D y 'T I 00 I co N y r_ LO 00 Ln Q (o O 00 NT C6 L6 LO C6 V O 00 M L .a V N co (o c c v v O U � � a N U) 00 LO 00 N LO ' % N 00 CU) N r- O N V NO , C7 V Lo Lo 00 (O O O fy0 N N LO I- U U O U O i U' 00 00 co N co E C � V7 L6 N A N c c U) to rn K Q N w O i 0 m y O M - m 0) w` O N co (o co ' V co O LO I— O N LO O LO O N M V) •V O V N (o Ln O aI L N LO LO N V V O L U) V U V) M co 00 (o N I— O y O r— CO CO 00 (O O N = (o V Lr ('7 (o C O) O) N Lo O (o O co N O N V 00 V CO C. O O V 00 N W V O C 00 V N LC EA EA N ) U V C N �p m C N O E U) U) V) L N U O N N U 2 > r m m O N Q N 0 0 _ O U fL0 V N. U m r m O U) 0 y > U U) U a c o a) c m c � o U m c E m rn � Z c in 0 i N .V .V E N �° o 0 N C -5-0 E U N N O U 0- U of Z LL i7 OOO V 0m LO r— (o rn 00 N 00 I— LO 00 O 00 O 00 O (o I— Lo M- I- O N N O) — 00 O V O) 00 LO N LO O) 00 O N N N (o V V= V O LO V co N co N I— = V O N tt•�GUFi N F N V Lo LON O NIN MlLnll (o O LC) O 00 00 O V Ln ('7 0) N I� O O N Lo 00 co V V O V EA E N .T m C C C 0) % N O O U U N U O L m 0 C U) C U) fn N C: ++ N A U) to rn K Q N w O i y O M - m 0) m E c O U) X C o m C r •� m _ m O }` �� N C Gi % � X m m i o a R rn X M _ vOi c m�(nH� R MO m m a�H DSO xH� U' W Z Z Fund balances Special Revenue Nonspendable Housing and Loans receivable - Advances to other funds, net of accrued interest Community - - Prepaid items 23,730 23,808 Development Future Housing General Grant Development Authority Grants ASSETS - - - - Capital projects funds Pooled cash and investments $ 5,157,618 369,000 10,462,176 714,198 Economic development fund Cash and investments with fiscal agents - - - - Property taxes receivable 268,155 - - Loan repayment Intergovernmental receivables 1,218,972 332,392 Unrestricted 558,952 3,511,060 Loans receivable - 4,263,998 - - - Other receivables, net 11,799 115 7,249 971 4,989,313 Prepaids 23,730 23,808 - 259,756 Advances to other funds 18,427,954 - - - Total assets $ 25,108,228 4,989,313 10,469,425 1,533,877 3,511,060 LIABILITIES AND FUND BALANCES Liabilities Accounts payable $ 740,488 54,896 - 130,855 987,324 Accrued liabilities 613,005 9,879 - - Deposits - - - Due to other funds 247,378 2,027,547 Due to other governmental agencies 7,071 - Deferred revenue 7,670,466 4,555,144 115,810 Total liabilities 9,023,959 4,874,368 130,855 3,130,681.00 Fund balances Nonspendable Loans receivable - Advances to other funds, net of accrued interest 11,149,522 - - Prepaid items 23,730 23,808 - 259,756 - Restricted Special revenue funds - 91,137 10,469,425 1,143,266 380,379 Debt service funds - - - - Capital projects funds Committed to Economic development fund - 10% budget stabilization fund 2,477,618 Assigned Loan repayment 606,926 Unrestricted Unassigned 1,826,473 - - - Total fund balances 16,084,269 114,945 10,469,425 1,403,022 380,379 Total liabilities and fund balances $ 25,108,228 4,989,313 10,469,425 1,533,877 3,511,060 17 City of Baldwin Park Balance Sheet Governmental Funds June 30, 2012 Other Governmental Funds Totals 16,385,360 $ 33,088,352 1,688,255 1,688,255 - 268,155 610,092 6,231,468 179,428 4,443,426 13,337 33,471 3,000 310,294 - 18,427,954 18,879,472 $ 64,491,375 682,016 $ 2,595,579 - 622,884 401,966 401,966 280,101 2,555,026 - 7,071 179,428 12, 520, 848 1,543,511 18, 703, 374 179,428 179,428 - 11,149,522 3,000 310,294 14,126,520 26,210,727 1,507,658 1,507,658 13,777 13,777 1,649,752 1,649,752 - 2,477,618 606,926 (144,174) 1,682,299 17, 335, 961 45, 788, 001 18,879,472 $ 64,491,375 The notes to the financial statements are an integral part of these financial statements. 18 (This page intentionally left blank.) 19 City of Baldwin Park Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Assets June 30, 2012 Amounts reported for governmental activities in the statement of net assets are different because: Total fund balances $ 45,788,001 Deferred charges represent costs associated with the issuance of long -term debt, (9,290,000) which are deferred and amortized over the life of the debt. The costs are (8,695,000) reported as expenditures of current financial resources in the governmental (5,969,000) funds. 175,283 Capital assets used in governmental activities are not financial resources and, (1,378,753) therefore, are not reported in the funds: (4,151,146) (29,672,230) Governmental capital assets $ 239,028,616 Less accumulated depreciation (124,260,286) 114,768,330 Loans receivable not expected to be collected in the current period are offset by unearned revenue in the funds. They have been recognized and are in net assets in the government -wide financial statements. 4,443,426 Accrued interest on long -term debt is not due and payable in the current period and is not reported in the funds. (206,087) Certain revenues in the governmental funds are deferred because they are not collected within the prescribed time period after year -end. Those revenues are recognized on the accrual basis in the government -wide statements. Unearned interest income on advances for administrative expenses 7,278,430 Long -term liabilities, including bonds payable, are not due and payable in the current period and therefore, are not reported in the funds. Lease revenue bonds (9,290,000) Pension obligation bonds (8,695,000) Notes payable (5,969,000) Lease obligations (188,331) Compensated absences (1,378,753) Other postemployment benefits (4,151,146) (29,672,230) Payment of unfunded pension liabilities are expenditures at the fund level but are deferred and subject to capitalization and amortization on the government - wide statement of net assets 6,826,940 Internal service funds are used by management to charge the costs of information systems, insurance charges and fleet services to individual funds. The assets and liabilities of internal funds are included in governmental activities in the statement of net assets. (1,707,946) Enterprise fund represents housing for low- income elderly tenants. Since the purpose of the fund corresponds with other governmental activities, the assets and liabilities of the enterprise fund are included in governmental activities in the statement of net assets. 590,935 Net assets of governmental activities $ 148,285,081 The notes to the financial statements are an integral part of these financial statements. 20 Revenues Taxes Licenses and permits Fines, forfeitures and penalties Use of money and property Intergovernmental Charges for services Other Total revenues Expenditures Current: General government Public safety Public corks Community development Recreation services Capital outlay: Public corks Community development Debt service: Principal retirement Interest and fiscal charges Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Transfers in Transfers out Net other financing sources (uses) Net change in fund balances before special item Extraordinary items RDA dissolution transactions Net extraordinary items Net change in fund balances Beginning fund balances Ending fund balances Special Revenue Housing and Community Development Future Housing General Grant Development Authority Grants $ 19,885,434 935,425 108,934 18,203 293,287 538,895 - 559,711 253,434 - 1,119,318 - - - - 218,006 7,911 20,162 5,809 180,924 259,153 1,501,260 - 3,437,442 2,776,052 1,353,864 - - 230,118 58,953 215,408 - 70,073 18,203 23,433,623 1,724,579 20,162 3,513,324 3,498,584 1,999,045 935,425 108,934 18,203 16,357,554 36,956 - 559,711 253,434 51,002 - 10,098 984,665 624,487 4,947,023 271,210 2,913,501 57,216 196 7,126 - 112,696 - - 40,015 - - 2,858,549 369,000 269,730 (1,878,293) (501,380) (41,654) - (1,878,293) (132,380) - (41,654) 269,730 (992,884) (225,583) 20,162 (1,584,483) 43,417 (992,884) 17,077,153 (225,583) 340,528 20,162 10,449,263 (1,584,483) 2,987,505 22,548,214 1,817,782 - 5,056,153 3,724,897 885,409 (93,203) 20,162 (1,542,829) (226,313) 369,000 269,730 (1,878,293) (501,380) (41,654) - (1,878,293) (132,380) - (41,654) 269,730 (992,884) (225,583) 20,162 (1,584,483) 43,417 (992,884) 17,077,153 (225,583) 340,528 20,162 10,449,263 (1,584,483) 2,987,505 43,417 336,962 $ 16,084,269 114,945 10,469,425 1,403,022 380,379 The notes to the financial statements are an integral part of these financial statements. 21 City of Baldwin Park Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds Year ended June 30, 2012 Other Governmental Funds Totals 5,831,521 $ 26,010,242 32,087 570,982 1,012,911 2,132,229 119,510 552,322 7,391,677 15,365,584 319,105 1,903,087 1,627,700 1,990,337 16,334, 511 48,524, 783 409,245 3,470,852 1,101,234 18,055,455 5,491,370 5,805,904 2,392,287 9,219,672 861,033 3,839,072 1,367,497 1,480,193 - 2,898,564 3,003,000 3,003,000 2,131,081 2,131,081 16,756,747 49,903,793 (422,236) (1,379,010) 2,951,155 3,589,885 (1,926,798) (4,348,125) 1,024,357 (758,240) 602,121 (2,137,250) 9,492,143 9,492,143 9,492,143 9,492,143 10,094,264 7,354,893 7,241,697 38,433,108 17,335,961 $ 45,788,001 The notes to the financial statements are an integral part of these financial statements. 22 City of Baldwin Park Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes In Fund Balances to the Statement of Activities Year ended June 30, 2012 Amounts reported for governmental activities in the statement of activities are different because: Net change in fund balance - governmental funds $ 7,354,893 Governmental funds report capital outlay as expenditures. In the statement of activities the cost of those assets is allocated over their estimated useful lives as depreciation expense. Capital outlay $ 4,535,650 Depreciation expense (8,115,611) (3,579,961) Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the governmental funds. Unearned interest income on advances for administrative expenses $ 745,205 Interest on Low/Moderate Income Housing agreement 47,291 792,496 Long -term debt proceeds provide current financial resources to governmental funds, but issuing debt increases long -term liabilities in the statement of net assets. Costs associated with the issuance of long -term debt are reported as expenditures in the governmental funds, but deferred and amortized throughout the period during which the related debt is outstanding in the statement of net assets. Repayment of debt principal is an expenditure in the governmental funds, but the repayment reduces long -term liabilities in the statement of net assets. Capital lease obligation $ (188,330) County deferral received (168,086) Amortization of deferred costs of issuance (41,884) Principal repayments of notes payable 585,000 Principal repayments of bonds 2,418,000 2,604,700 Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds. Accrual of other postemployment benefits (1,113,494) Payment of unfunded pension liabilities are expenditures at the fund level but are deferred and subject to capitalization and amortization on the government wide statement of net assets (1,137,824) Repayment of long -term receivables are treated as revenue in governmental funds, but the repayment reduces the long -term receivables in the statement of net assets. (166,496) Issuance of long -term receivables are treated as expenditures in governmental funds but are treated as increases in receivables in the statement of net assets 693,000 Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds. Change in accrued interest on long -term debt $ 32,604 Compensated absences (41,979) (9,375) Internal service funds are used by management to charge the costs of information systems, insurance charges and fleet services to individual funds. The net income of the internal service funds is reported with governmental activities. (214,920) Enterprise fund represents housing for low- income elderly tenants. Since the purpose of the fund corresponds with other governmental activities, the net loss of the enterprise fund is included in governmental activities. 18,225 Transfer of balances to Successor Agency 37,060,271 Change in net assets of governmental activities $ 42,301,515 The notes to the financial statements are an integral part of these financial statements. 23 ASSETS Current assets Pooled cash and investments Accounts receivable Interest receivable Due from other funds Prepaid expenses Total current assets Noncurrent assets Capital assets: Equipment Less accumulated depreciation Net capital assets Total noncurrent assets LIABILITIES City of Baldwin Park Statement of Net Assets Proprietary Funds June 30, 2012 Governmental Activities Enterprise Internal Fund Service Funds $ 105,277 1,475 106,752 855,831 (364,737) 491,094 491,094 Total assets 597,846 Current liabilities Accounts payable Current portion of capital lease obligations Current portion of insurance liabilities Tenant security deposits Total current liabilities Noncurrent liabilities Capital lease obligations Workers' compensation liability General insurance liability Unemployment insurance liability Disability insurance liability Total noncurrent liabilities 4,960 $ 3,618,900 11,039 3,742 2,555,026 20,348 6,209,055 6,873,532 (6,482,109) 391,423 391,423 6,600,478 149,659 84,413 1,350,000 1,951 - 6,911 1,584,072 Total liabilities 6,911 16,294 5,923,583 689,475 20,000 75,000 6,724,352 8,308,424 NET ASSETS (DEFICIT) Invested in capital assets, net of related debt 491,094 290,716 Unrestricted 99,841 (1,998,662) Total net assets(deficit) $ 590,935 $ (1,707,946) The notes to the financial statements are an integral part of these financial statements. 24 City of Baldwin Park Statement of Revenues, Expenses and Changes in Fund Net Assets Proprietary Funds Year ended June 30, 2012 Governmental Activities Enterprise Internal Fund Service Funds Operating revenues Charges for services $ 2,496 $ 4,429,982 Other 32,079 7,222 Total operating revenues 34,575 4,437,204 Operating expenses Maintenance and operations Internal service charge Provision for insurance claims Depreciation Lease and equipment purchase Personnel services Contractual services Interest expense Total operating expenses Operating income (loss) Nonoperating income Gain on sale of capital assets Interest Total nonoperating income Income (loss) before operating transfers Transfers Transfers in 40,921 680,424 - 119,401 5,100 2,324,456 11,983 285,628 - 72,227 - 705,130 - 473,686 - 7,828 58,004 4,668,780 (23,429) (231,576) - 4,584 - 12,072 16,656 (23,429) (214,920) 41,654 Change in net assets 18,225 (214,920) Total net assets - beginning 572,710 (1,493,028) Total net assets - ending $ 590,935 $ (1,707,946) The notes to the financial statements are an integral part of these financial statements. 25 Cash flows from operating activities Receipts from tenants, customers and users Payments to suppliers Payments to employees Payments for insurance Net cash provided by (used in) operating activities Cash flows from capital and related financing activities Payments for property and equipment Proceeds from sale of capital assets Reduction in capital lease obligations Net cash used in capital and related financing activities Cash flows from non - capital financing activities City of Baldwin Park Statement of Cash Flows Proprietary Funds Year ended June 30, 2012 Governmental Activities Enterprise Internal Fund Service Funds $ 34,762 $ 4,459,781 (21,025) (1,623,164) (23,071) (428,488) - (1,671,700) (9,334) 736,429 - (16,000) - 4,584 - (146,890) - (158,306) Transfers 41,654 - Interfund advances - (929,241) Net cash provided by (used in) non - capital financing activities 41,654 (929,241) Cash flows from investing activities Interest received - 12,213 Change in cash and cash equivalents Beginning cash and cash equivalents Ending cash and cash equivalents Reconciliation of operating income (loss) to net cash provided by (used in) operating activities: Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation (Increase) decrease in accounts receivable Increase (decrease) in accounts payable Increase in prepaid expenses Increase in insurance liabilities Net cash provided by (used in) operating activities Supplemental schedule of noncash investing and financing activities Equipment acquired through capital lease Supplemental cash flow information Cash paid for interest 32,320 (338,905) 72,957 3,957,805 $ 105,277 $ 3,618,900 $ (23,429) $ (231,576) 11,983 285,628 39 22,577 2,073 8,774 - (1,730) - 652,756 $ (9,334) $ 736,429 $ - $ 122,027 $ - $ 7,828 The notes to the financial statements are an integral part of these financial statements. 26 ASSETS Cash and investments Cash and investments with fiscal agents Property taxes receivable Loans receivable Other receivables, net Deferred bond issue cost Property held for resale, net Total assets City of Baldwin Park Fiduciary Funds Statement of Net Assets June 30, 2012 Agency Deposits $ 658,034 $ 441 658,475 Successor Agency Funds 2,230,610 995,960 223,771 3,078,755 137,757 157,583 5,965,898 12,790,334 LIABILITIES AND FUND BALANCES Liabilities Accounts payable 29,145 13,300 Accrued liabilities - 11,150 Accrued interest - 471,416 Deposits 629,330 - Advances from other funds - 18,427,954 Due to other governmental agencies - 18,136,703 Tax allocation bonds - 21,415,000 Total liabilities 658,475 58,475,523 FICUCIARY NET ASSETS (DEFICIT) Net assets (deficit) $ - $ (45,685,189) The notes to the financial statements are an integral part of these financial statements. 27 City of Baldwin Park Fiduciary Funds Statement of Changes in Fiduciary Net Assets — Successor Agency Funds Year ended June 30, 2012 Amounts Additions: Taxes $ 2,096,895 Fines, forfeitures and penalties 42 Use of money and property 7,617 Other 1,398 Total revenues 2,105,952 Deductions: Community development 1,226,530 Interest and fiscal charges 535,370 Total expenditures 1,761,900 Excess (deficiency) of revenues over expenditures 344,052 Other financing sources (uses) Interest expense on Advances from the City (745,204) Write -off of Advances from other funds 278,300 Write -off of Notes Payable 273,490 Transfers in 2,839,355 Transfers out (2,122,768) Net other financing sources (uses) 523,173 Net change in fund balances before extraordinary item 867,225 Extraordinary item Redevelopment Agency dissolution transactions (46,552,414) Net change in net assets balances (45,685,189) Fiduciary net assets at beginning of the year - Fiduciary net assets (deficit) at end of year $ (45,685,189) The notes to the financial statements are an integral part of these financial statements. 28 (This page intentionally left blank.) City of Baldwin Park Notes to Financial Statements Year ended June 30, 2012 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Reporting Entity The reporting entity "City of Baldwin Park" includes the financial activities of the former Baldwin Park Redevelopment Agency (for the period of July 1, 2011 to January 2012 prior to the to the dissolution of the Agency because of AB1x 26), the Baldwin Park Successor Agency (formerly Redevelopment Agency), the Baldwin Park Housing Authority and the Baldwin Park Public Financing Authority, as well as the City. Although these entities are legally separate from each other, they are included within the scope of the reporting entity. The inclusion of an organization within the City of Baldwin Park reporting entity is based on the provisions of GASB Statement 39. These organizations are legally separate entities for which the City of Baldwin Park is financially accountable. The governing body of these organizations is substantially the same as the City Council. As a result, the financial statements of the individual component units described below are blended with the City's financial statements. Separate financial statements are not prepared for the Baldwin Park Redevelopment Agency, the Baldwin Park Successor Agency, the Baldwin Park Housing Authority or the Baldwin Park Financing Authority. The City of Baldwin Park (the City), incorporated on January 25, 1956, is a general law city, which operates under a Council -Chief Executive Officer form of government. The City Council appoints the City Attorney, the Chief Executive Officer, and five department heads. Currently, the City is managed by an Executive Team. The Executive Team is composed of the Chief Executive Officer and six department heads. The City provides a broad range of services to its citizens, which include police protection, street construction and maintenance, parks and recreation, public improvements, planning and zoning, housing and community development and general and administrative support services. The Baldwin Park Community Development Commission (the Redevelopment Agency), formerly known as Baldwin Park Redevelopment Agency, was established on November 27, 1974, pursuant to the Health and Safety Code of the State of California. The Agency's purpose is to prepare and carry out plans for the improvement, rehabilitation and development of blighted areas within the boundaries of the City. There are currently two approved project areas. Please refer to Note 19 regarding the Recent Laws and Regulations Affecting Redevelopment Agencies. The Baldwin Park Housing Authority (the Housing Authority) was established on October 27, 1977 pursuant to the Health and Safety Code of the State of California. The Housing Authority's purpose is to oversee the administration of federally funded housing assistance programs. These programs are designed to provide affordable housing opportunities for low and moderate income residents of the cities of Baldwin Park, West Covina, Monrovia and South El Monte. The Baldwin Park Public Financing Authority (the Financing Authority) was established on April 6, 1988 between the City of Baldwin Park and the Baldwin Park Redevelopment Agency by execution of a joint exercise of powers agreement. The Financing Authority is governed by a five - member board consisting of the City Council. The Financing Authority's purpose is to acquire, finance, construct, manage and maintain or operate certain public capital improvements. 30 City of Baldwin Park Notes to Financial Statements Year ended June 30, 2012 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) The City's financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America as applied to governmental agencies. The Governmental Accounting Standards Board (GASB) is the accepted standard - setting body for establishing governmental accounting and financial reporting principles. The City's more significant accounting policies are described below. Government -wide and Fund Financial Statements The statement of net assets and statement of activities (i.e., the government -wide financial statements) display information on all of the non - fiduciary activities of the primary government (the City) and its blended component units. Eliminations have been made to minimize the effect of interfund activity. Interfund services provided and used are not eliminated in the process of consolidation. These statements distinguish between the City's governmental and business -type activities. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business -type activities, which rely to a significant extent on fees charged to external parties. The City reports its enterprise fund under governmental activities in the government -wide financial statements because the purpose of the fund corresponds with governmental activities and it is only partially self - supporting. Therefore, the City does not currently report any business -type activities. The statement of activities presents a comparison between direct expenses and program revenues for each function of the City's governmental activities and for each segment of the City's business -type activities. Direct expenses are those that are specifically associated with a program or function and are clearly identifiable to a particular function. Program revenues include 1) charges paid by the recipient of goods or services offered by the programs and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. 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 proprietary fund's ongoing operations. The principal operating revenues of the City's proprietary funds are charges to customers for sales and services. Operating expenses for proprietary funds include cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. When both restricted and unrestricted net assets are available for use, the City's policy is to use restricted resources first, then the unrestricted resources as they are needed. 31 City of Baldwin Park Notes to Financial Statements Year ended June 30, 2012 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) The accounts of the City of Baldwin Park (the City) are organized on the basis of funds, each of which is considered a separate accounting entity with a self - balancing set of accounts established for the purpose of carrying out specific activities or attaining certain objectives in accordance with applicable regulations, restrictions or limitations. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the last is excluded from the government -wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. All remaining governmental and enterprise funds are separately aggregated and reported as nonmajor funds. Measurement Focus, Basis of Accounting and Financial Statement Presentation The government -wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues are recognized when earned and expenses are recognized when the liabilities are incurred regardless of the timing of related cashflows. Property taxes are recognized as revenues in the 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. Governmental fund 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 or soon enough thereafter to pay liabilities of the current period. The City considers taxes and assessments associated with the current fiscal period to be available if they are collected within 60 days of the end of the current fiscal period. All other revenue items are considered to be measurable and available only when the City receives cash. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures are recorded only when payment is due. Private sector standards of accounting and financial reporting issued prior to December 1, 1989, are generally followed in both the government -wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. Governments also have the option of following subsequent private- sector guidance for their business -type activities and enterprise funds, subject to this same limitation. The City has elected not to follow subsequent private- sector guidance. 32 City of Baldwin Park Notes to Financial Statements Year ended June 30, 2012 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) The City reports the following major governmental funds: General Fund - The General Fund is the City's general operating fund. It is used to account for all financial resources, except those required to be accounted for in other funds. Special Revenue Funds - The Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than those for Capital Projects Funds) that are legally restricted to expenditures for special purposes. Major special revenue funds are: Housing and Community Accounts for revenues from the Department of Development Grant Fund Housing and Urban Development. These revenues must be expended to accomplish one of the following objectives: elimination of slum or blight, be of benefit to low and moderate income persons, or meet certain urgent community needs. The fund includes revenues from the BLOCK and HOME programs. Housing Authority This fund accounts for housing assistance programs, which include Voucher, CIAP, and New Construction, administered by the City's Housing Authority under the rules and regulations of the U.S. Department of Housing and Urban Development. Grants Accounts for revenues and expenditures for various grants that are restricted for specific use. Future Development Amounts in this fund are to be used for economic development projects, and a portion of which represents payments from the City's former redevelopment agency and interest earned thereon. Additionally, the City reports the following fund types: Governmental Funds Descriptions for Special Revenue funds, Debt Service funds and Capital Projects funds can be found on pages 70 to 72. Proprietary Funds Enterprise Fund - The Enterprise Fund is used to account for a 12 -unit complex occupied by elderly low- income tenants, who pay monthly rents to the City. 33 City of Baldwin Park Notes to Financial Statements Year ended June 30, 2012 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Internal Service Funds - The Internal Service Funds are used to account for the financing of goods or services provided by one City department to the other departments or agencies on a cost reimbursement basis. These funds account for the revenues and expenses of the City's Fleet Services, Information Services and Internal Insurance. Fiduciary Funds Agency Deposit Fund — This fund is used to account for assets held by the City in a trustee capacity or as an agent on behalf of employees, individuals, private organizations, other governments or other funds. This fund includes resources held for seized assets, police training, donations for others, etc. Agency deposit fund, which is custodial in nature, do not involve measurement of results of operations. Successor Agency Funds — The successor agency funds are used to report the assets, liabilities and activities of the Successor Agency to the Dissolved Baldwin Park Community Development Commission. Financial Statement Elements Cash and Investments Investments are stated at fair value, the value at which a financial instrument could be exchanged in a current transaction between willing parties other than a forced or liquidation sale. The City pools all nonrestricted cash for investment purposes. Interest income earned on pooled cash is allocated quarterly to the various funds based on their month -end cash balances. Interest income from restricted cash is allocated directly to the fund earning the income. Property Taxes The County of Los Angeles has the responsibility for property tax and assessment levies and collections. The County's property tax calendar is July 1 to June 30. Property taxes are an enforceable lien on the property as of the preceding January 1. Property tax bills, which include assessments, are levied June 30 and are due in equal installments on November 1 and February 1 of each property tax year. The City records property tax assessment revenues upon receipt or anticipated receipt from the County. Property taxes receivable reported in the fund statements are not offset by deferred revenues because they are collectable within 60 days of fiscal year end. Receivables and Payables Property, sales, use and utility user taxes related to the current fiscal year are accrued as revenue and accounts receivable and considered available if received within 60 days of year -end. Federal and State grants are considered receivable and accrued as revenue when reimbursable costs are incurred under the accrual basis of accounting in the government -wide statement of net assets. The amount recognized as revenue under the modified accrual basis of accounting is limited to the amount that is deemed measurable and collectable. Earned but unbilled revenue is recognized as revenue and accounts receivable in the enterprise funds. M City of Baldwin Park Notes to Financial Statements Year ended June 30, 2012 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Interfund Transactions Interfund transactions are reflected as either loans, services provided, reimbursements or transfers. Loans are reported as receivables and payables as appropriate, are subject to elimination upon consolidation and are referred to as either "due to /from other funds" (i.e., the current portion of interfund loans) or "advances to /from other funds" (i.e., the noncurrent portion of interfund loans). Any residual balances outstanding between the governmental activities and the business - type activities are reported in the government -wide financial statements as "internal balances ". Advances between funds, as reported in the fund financial statements, are offset by a nonspendable fund balance account applicable governmental funds to indicate that they are not available for appropriation and are not available financial resources. Services provided, deemed to be at market or near market rates, are treated as revenues and expenditures /expenses. Reimbursements are when one fund incurs a cost, charges the appropriate benefiting fund and reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers. Transfers between governmental and proprietary funds are netted as part of the reconciliation of the government -wide presentation. Restricted Assets Certain proceeds of debt issues, as well as certain resources set aside for their repayment, are classified as restricted assets on the balance sheet because their use is limited by applicable bond covenants. Capital Assets Capital assets, which include land, buildings, improvements, vehicles, furniture, equipment and infrastructure assets (e.g., roads, bridges, curbs and gutters, sidewalks and lighting and drainage systems) are reported in the applicable governmental or business -type activities column in the government -wide financial statements. Capital assets are recorded at historical cost or estimated cost, if historical cost is not available. Contributed assets are recorded at their estimated fair value at the time received. The costs of normal maintenance and repairs that do not add value to the asset or materially extend lives are not capitalized. Capital assets are depreciated using the straight -line method over the following estimated useful lives: Building 60 years Machinery and equipment 3 to 20 years Vehicles and related equipment 5 to 15 years Roadway network 20 to 50 years Commuter rail network 50 years Sewer network 60 years Storm drain network 50 years 35 City of Baldwin Park Notes to Financial Statements Year ended June 30, 2012 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) It is the City's policy to capitalize all land, building, improvements, equipment and infrastructure assets, except assets costing less than $5,000. Interest incurred during the construction phase of capital assets of business -type activities is reflected in the capitalized value of the asset constructed, net of interest earned on the invested proceeds over the same period. Costs of assets sold or retired (and related amounts of accumulated depreciation) are eliminated from the accounts in the year of sale or retirement and the resulting gain or loss is included in the operating statement of the related activity. In governmental funds, the sale of general capital assets is included in the statement of revenues, expenditures and changes in fund balances as proceeds from sale. Provision for depreciation of capital assets is computed using the straight -line method. Property Held for Resale Property held for resale is recorded at the lower of cost or fair value. A corresponding nonspendable fund balance account is recorded which indicates the asset does not represent available expendable resources. Compensated Absences It is the City's policy to record the liability for employees vested earned vacation, compensatory time off, etc. All vacation pay is accrued when incurred in the government -wide and proprietary fund financial statement. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements. The City does not provide for the vesting of sick leave; therefore, no liability has been recorded. Self- Insurance Programs The City has initiated self- insurance programs for long -term disability and unemployment insurance claims. In addition, the City maintains a cash reserve to provide for the per- occurrence deductible on property damage, workers' compensation and general liability claims of $5,000, $500,000 and $300,000, respectively. These activities are accounted for in the Internal Insurance Service Fund. Operating revenues are primarily user charges to other funds and are planned to match estimated payments resulting from self- insurance programs, operating expenses and reinsurance premiums. The fund accrues the estimated liability for claims when such amounts are reasonably determinable and where the liability is probable. Further, the fund sets up a cash reserve for these known claims as well as for the estimated liability for such claims expected to be filed for incidents, which had occurred as of June 30, 2012. The calculation is based on ten -year historical trend analysis. The City is a member of the Independent Cities Risk Management Authority (ICRMA), a joint powers authority formed to provide liability insurance coverage for independent cities. Under the terms of the agreement with ICRMA, the City is insured for liability losses in excess of the $300,000 Self- Insurance Retention (SIR), with a liability limit of $1,000,000 per occurrence and workers' compensation losses in excess of the $500,000 Self- Insured Retention (SIR), with a liability limit of $5,000,000 per any one loss (see Note 16). City of Baldwin Park Notes to Financial Statements Year ended June 30, 2012 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Deferred Revenues Deferred revenues in governmental funds arise when potential revenue does not meet both the "measurable" and "available" criteria for recognition in the current period. Unearned Revenues In the government -wide financial statements, unearned revenues arise when the City receives resources before it has a legal claim to them (e.g., when grant monies are received prior to the incurrence of qualifying expenditures). Long -term Obligations In the government -wide financial statements and proprietary fund types in the fund financial statements, long -term debt and other long -term obligations are recorded as liabilities in the applicable governmental activities, business -type activities, or proprietary fund type statement of net assets. Bond premiums and discounts, if applicable, are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the life of the related debt using the straight -line method. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual net proceeds received, are reported as debt service expenditures. Fund Balance In fiscal year 2010 -11, the City of Baldwin Park adopted Governmental Accounting Standards Board (GASB) Statement No. 54, Fund Balance Reporting and Government Fund -type Definitions. Fund balance is the difference between the assets and liabilities reported in the City's governmental funds. There are generally limitations on the purpose for which all or a portion of the resources of a governmental fund may be used. The force behind these limitations can vary significantly, depending upon their source. Consequently, the fund balance reported in the annual financial statements is categorized into five components whereby each component identifies the extent to which the City is bound to honor constraints on the specific purposes for which amounts in the fund can be spent. The five components of fund balance are as follows (See Note 11): • Nonspendable: Resources that are 1) not in spendable form, such as inventories, prepaids, long -term receivables, or non - financial assets held for resale, or 2) required to be maintained intact such as an endowment. • Restricted: Resources that are subject to externally enforceable legal restrictions; these restrictions would be either 1) externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments or 2) imposed by law through constitutional provisions or enabling legislation. 37 City of Baldwin Park Notes to Financial Statements Year ended June 30, 2012 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) • Committed: Resources that are constrained to specific purposes by a formal action of the City Council such as an ordinance or 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. • 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 has designated the Chief Executive Officer as the City official to determine and define the amounts of those components of fund balance that are classified as "Assigned Fund Balance ". • 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. Statement of Cash Flows For purposes of the statement of cash flows, cash equivalents are defined as investments with original maturities of 90 days or less, which are readily convertible to known amounts of cash and not subject to significant changes in value from interest rate fluctuations. The City considers all pooled cash and investments (consisting of cash and investments and restricted cash and investments) held by the City as cash and cash equivalents because the pool is used essentially as a demand deposit account from the standpoint of the funds. The City also considered all non - pooled cash and investments (consisting of cash with fiscal agent and restricted cash and investments held by fiscal agent) as cash and cash equivalents because investments meet the criteria for cash equivalents defined above. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates. NOTE 2 NET ASSETS /FUND BALANCES The governmental activities and business -type activities in the government -wide financial statements utilize a net assets presentation. Net assets are categorized as invested in capital assets (net of related debt), restricted and unrestricted. • Invested in capital assets, net of related debt — This category groups all capital assets, including infrastructure, into one component of net assets. 0 NOTE 2 NOTE 3 NOTE 4 City of Baldwin Park Notes to Financial Statements Year ended June 30, 2012 NET ASSETS /FUND BALANCES (CONTINUED) 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 assets — This category presents external restrictions imposed by creditors, grantors, contributors, laws or regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation. • Unrestricted net assets — This category represents the City's net assets, which are not restricted for any project or other purpose. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY Deficit Fund Balance The following funds have deficit fund balances or net assets at June 30, 2012. Management expects to eliminate the deficits with subsequent revenue in the funds or transfers from the General Fund. Nonmajor Funds Park Maintenance District $ 1,999 Bicycle and Pedestrian Safety 14,833 Total nonmajor governmental funds 16,832 Proprietary funds: Internal Service Funds Internal Insurance 2,089,936 Total funds $ 2,106,768 CASH AND INVESTMENTS At June 30, 2012, the City's cash and investments consist of: Fiduciary Fund- Fiduciary Fund - Government -wide Agency Deposit Successor Agency Statement of Statement of Statement of Net assets Net Assets Net Assets Total Unrestricted assets Cash and investments $ 36,812,529 $ 658,034 $ 2,230,610 $ 39,701,173 Restricted assets Cash and investments with fiscal agent 1,688,255 995,960 2,684,215 Total cash and Investments $ 38,500,784 $ 658,034 $ 3,226,570 $ 42,385,388 Cash and investments at June 30, 2012 consisted of the following: Cash on hand $ 833 Deposits with financial institutions 3,777,709 Investments 38, 606, 846 Total cash and investments $ 42,385,388 0 City of Baldwin Park Notes to Financial Statements Year ended June 30, 2012 NOTE 4 CASH AND INVESTMENTS (CONTINUED) The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by outside fiscal agents under the provisions of bond indentures. Interest income is allocated quarterly to the various funds based on monthly balances. Interest income from cash and investments with fiscal agents is credited directly to the related fund. Investment Policy The City's investment policy outlines the guidelines required to be used in effectively managing the City's available cash in accordance with the California Government Code. Summarized below are the investment vehicles that are authorized and certain provisions of the policy that address interest rate risk and concentration of credit risk. Cash and Investments with Fiscal Agents - The City has monies held by trustees or fiscal agents pledged to the payment or security of certain notes, bonds and certain construction projects. Money market mutual funds may be purchased as allowed under California Government Code. Only funds holding U.S. Treasury or Agency obligations can be utilized. Interest Rate Risk Interest rate risk, as defined under Governmental Accounting Standards Board (GASB) Statement No. 40, is the risk that changes in interest rates will adversely affect the fair value of an investment. Most of the City's investments are held in trust by the fiscal agents as required by the bond indenture. The following table summarizes the distribution of the City's investments according to maturity at June 30, 2012. .W Maximum Allowable Maximum Investment Percentage Maturity Percentage per Issuer U.S. Treasury Obligations 365 days Unlimited N/A U.S. Agency Securities and Instrumentalities of Government 365 days Unlimited N/A Sponsored Corporation Negotiable Certificates of Deposit 365 days 30% N/A Time Deposits — Collateralized 365 days Unlimited $500,000 Time Deposits — Uncollateralized 365 days Unlimited $100,000 Banker's Acceptances 180 days 40% 30% Repurchase Agreements 180 days Unlimited N/A Commercial Paper rated A -1 by Standard and Poor's Corporation or P -1 by Moody's Investors 180 days 30% 10% Services, Inc. LAIF N/A Unlimited $40,000,000 Cash and Investments with Fiscal Agents - The City has monies held by trustees or fiscal agents pledged to the payment or security of certain notes, bonds and certain construction projects. Money market mutual funds may be purchased as allowed under California Government Code. Only funds holding U.S. Treasury or Agency obligations can be utilized. Interest Rate Risk Interest rate risk, as defined under Governmental Accounting Standards Board (GASB) Statement No. 40, is the risk that changes in interest rates will adversely affect the fair value of an investment. Most of the City's investments are held in trust by the fiscal agents as required by the bond indenture. The following table summarizes the distribution of the City's investments according to maturity at June 30, 2012. .W City of Baldwin Park Notes to Financial Statements Year ended June 30, 2012 NOTE 4 CASH AND INVESTMENTS (CONTINUED) Less than More than 1 year 1 -5 years 5 years Pooled cash and investments $ 35,922,631 $ Unrestricted cash and investments 35,922,631 Total $ 35,922,631 35,922,631 Cash and investments with fiscal agents 2,684,215 2,684,215 Restricted cash and investments - 2,684,215 2,684,215 Total cash and investments $ 35,922,631 $ $ 2,684,215 $ 38,606,846 Concentration of Credit Risk Under GASB Statement No. 40, concentration of credit risk is the risk of loss attributable to the magnitude of the City's investment in a single issuer. As of June 30, 2012, the City's investments in First American Treasury Obligation Fund amounted to $1,217,219. Credit Risk on Pooled Deposits Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The California Government Code requires California banks and savings and loan associations to secure a city's deposits by pledging government securities as collateral. The market value of pledged securities must equal at least 110% of a city's deposits. California law also allows financial institutions to secure city deposits by pledging first trust deed mortgage notes having a value of 150% of a city's total deposits. The City may waive collateral requirements for deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation (FDIC). Custodial credit risk is the risk that in the event of a bank failure, the City's deposits may not be returned to it. In accordance with GASB Statement 40, deposits are exposed to custodial credit risk if they are uninsured and either: a. Uncol lateral ized b. Collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the depositor - government's name Credit Risk and Fair Value of Investments Investments are exposed to custodial credit risk if they are uninsured, unregistered and held by either: a. The counterparty b. The counterparty's trust department or agent but not in the government's name The City's investments are in external investment pools and in mutual funds, which are not exposed to custodial credit risk. 41 NOTE 4 NOTE 5 City of Baldwin Park Notes to Financial Statements Year ended June 30, 2012 CASH AND INVESTMENTS (CONTINUED) Presented below is the minimum rating as required by (where applicable) the California Government Code, the City's investment policy, or debt agreement and the actual rating as reported by Standard & Poor's as of year end for each investment type. Minimum Totals as of Legal Investment Type 30- Jun -12 Rating Local Agency Investment Fund $ 35,922,631 $ (1) $ Held by bond trustee: Money Market Mutual Fund 1,271,942 Investment Agreement 1,412,273 Total cash and investments $ 38,606,846 (1) Not applicable (2) Acceptable to the Municipal Bond Insurer Not required Rating to be not available rated Unrated - $ - $ 35,922,631 (1) - 1,271,942 (2) 1,412,273 - - $ 1,412,273 $ 1,271,942 $ 35,922,631 Local Agency Investment Fund (LAIF) Cash on deposit with LAW represents short -term demand deposits with the State Treasurer, who invests available cash balances of participating California government entities. The management of LAW has indicated to the City that as of June 30, 2012, the estimated fair value of the pool, including accrued interest, was approximately $60.6 billion. The City's proportionate share of the estimated fair value is $35.9 million. LAIF's (and the City's) exposure to risk (credit, market or legal) is not currently available. Restricted Cash and Investments The City has monies held by financial institutions, which are restricted for the payment of certain notes and bonds. LOANS RECEIVABLE AND DEFERRED REVENUES Deferred revenues on the General Fund for a total amount of $7,670,446 are composed of $7,278,272 interest on interfund advances, which is not available for current operations. The remaining deferred revenues on the General Fund for a total amount of $392,174 represent unearned grants. Loans Receivable and Unearned Revenues at June 30, 2012 consisted of the following: Loans Deferred Receivable Revenues General Fund $ - $ 7,670,466 Special Revenue Funds: Loans receivable from Commercial Rehabilitation Program 44,685 44,685 Loans receivable from Residential Rehabilitation Program 319,972 319,972 Loans receivable from HOME Program 3,944,026 3,944,026 Loans receivable from CalHOME Program 134,743 134,743 Unearned grants - 406,956 Total $ 4,443,426$ 12,520,848 42 City of Baldwin Park Notes to Financial Statements Year ended June 30, 2012 NOTE 6 INTERFUND BALANCES At June 30, 2012, the City's interfund receivables and payables were as follows: Advances Advances Due from Due to to from Other Funds Other Funds Other Funds Other Funds Major governmental funds General Fund $ Housing and Community Development Grants Total major governmental funds Nonmajor governmental funds Total governmental funds Proprietary funds Internal Service Funds 2,555,026 Total proprietary funds 2,555,026 18,427,954 $ 247,378 2,027,547 - 2,274,925 18,427,954 280,101 - 2,555,026 18,427,954 Fiduciary funds 2,622,720 2,622,720 18,427,954 Total fiduciary funds 2,622,720 2,622,720 18,427,954 Total funds $ 5,177,746 5,177,746 18,427,954 $ 18,427,954 Due to and due from other funds: Amounts due to the Internal Service Funds represent short -term borrowings by the Housing and Community Development, Grants funds, and other nonmajor governmental funds to compensate for negative cash balances and general operations. These balances are expected to be repaid within the next fiscal year. The majority of the Fiduciary Funds due from and due to represent borrowings from the 20% set aside low- moderate income by the Successor Agency (formerly Redevelopment) Debt Service Funds to pay the Supplemental Educational Revenue Augmentation Funds (SERAF) obligation for FY 2009 -2010 and FY 2010 -11. The housing set -aside fund is scheduled to repay $1,312,140 borrowed from FY2009 -10 by June 30, 2015, and $294,933 borrowed from FY 2010 -11 by June 30, 2016 with no interest to accrue on the loan. If not repaid by the deadline, then the housing set -aside allocation is increased to 25% permanently as required by Assembly Trailer Bill ABX4 26. 43 City of Baldwin Park Notes to Financial Statements Year ended June 30, 2012 NOTE 6 INTERFUND BALANCES (CONTINUED) Advances to and advances from other funds General Fund advances to Redevelopment Agency The City has an agreement with the Baldwin Park Successor Agency (formerly Redevelopment Agency) providing for the advance of funds to finance improvements and operations relating to and within the project areas. The Agency accrues interest on the original advances at LAIF's prevailing interest rate. At June 30, 2012, the City has advanced $18,427,954 which includes accrued interest of $7,345,372. In June 2011, Assembly Bill 26 (1st extraordinary session) dissolved the former Agency, effective (after some litigation on the matter) February 1, 2012. As part of the dissolution process set forth in that bill and a later bill clarifying and modifying the terms of the dissolution (Assembly Bill 1484, adopted in June 2012), the existing loan from the City to the Agency was considered by the Department of Finance to be not enforceable. The successor agency to the former redevelopment agency has sought reconsideration by the Department of Finance as to the enforceability of the loan. In addition, the loan may be reinstated (but is not required to be) under Assembly Bill 1484 following the completion of a due diligence process currently being undertaken by the successor agency. Resolution of the enforceability of the loan and the potential for the loan to be reinstated following the due diligence process is expected to be completed by June of 2013. The City's interfund transfers during the year were as follows: Major governmental funds General Fund Housing and Community Development Grants Housing Authority Total major governmental funds Nonmajor governmental funds Proprietary funds Enterprise Funds Fiduciary fund Total governmental funds Total proprietary funds Total fiduciary funds Total funds $ .. Transfers in Transfers out 369,000 269,730 638,730 1,878,293 501,380 41,654 2,421,327 2,951,155 1,926,798 3,589,885 4,348,125 41,654 41,654 2,839,355 2,839,355 6,470,893 2,122,768 2,122,768 $ 6,470,893 NOTE 6 NOTE 7 City of Baldwin Park Notes to Financial Statements Year ended June 30, 2012 INTERFUND BALANCES (CONTINUED) The Baldwin Park Financing Authority Debt Service Fund received resources from General Fund and Successor Agency Fund (formerly from the Redevelopment Debt Service Funds) for debt service payments. Transfers to other governmental funds were to fund the matching requirements on certain grants and capital projects. Transfers to proprietary funds were to provide funds for expenditures. CAPITAL ASSETS Capital asset activity for the year ended June 30, 2012 was as follows: Balance Balance July 1, June 30 2011 Increases Decreases 2012 Capital assets, not being depreciated: Land $ 1,804,151 - 1,804,151 Construction in progress 4,185,725 3,720,344 7,906,069 Capital assets, not being depreciated 5,989,876 3,720,344 9,710,220 Capital assets, being depreciated Buildings and improvements 31,906,755 508,335 - 32,415,090 Equipment 9,144,897 441,824 152,080 9,434,641 Vehicles and related equipment 4,372,184 - - 4,372,184 Infrastructure 190,853,031 27,190 190,825,841 Capital assets, being depreciated 236,276,867 950,159 179,270 237,047,756 Less accumulated depreciation for: Buildings and improvements 11,347,572 535,452 - 11,883,024 Equipment 7,300,705 382,775 - 7,683,480 Vehicles and related equipment 3,930,439 251,239 60,416 4,121,262 Infrastructure 100,175,605 7,243,759 - 107,419,364 Total accumulated depreciation 122,754,322 8,413,225 60,416 131,107,131 Capital assets being depreciated, net 113,522,545 (7,463,066) 118,854 105,940,625 Capital asset activity, net $ 119,512,421 (3,742,722) 118,854 115,650,845 Depreciation expense was charged to functions of the governmental activities as follows: General government $ 212,921 Public safety 156,400 Public works, including depreciation of general infrastructure assets 7,429,226 Parks and recreation 95,751 Community development 293,715 Capital assets held by internal insurance funds are charged to various functions based on their usage of the assets 225,212 Total depreciation expense - governmental activities $ 8,413,225 45 I L1 10111 Mg.] NOTE 9 City of Baldwin Park Notes to Financial Statements Year ended June 30, 2012 /_T90011,111111011111 &'Wivf_1:1I WAL111Z1)t9:INI :VOINJ 7:74011111i4/_1:314 Ill II*? Composition of accounts payable and other current liabilities is as follows LONG -TERM LIABILITIES Changes in Long -term Liabilities Summary of changes in long -term liabilities during the year ended June 30, 2012 (in $ thousands): Balance Accrued Vendors Liabilities Deposits Total Major governmental funds Transfers General Fund $ 740,488 $ 613,005 $ $ 1,353,493 Housing and Community Decreases Fiduciary 2012 Development Grant 54,896 9,879 64,775 Housing Authority 130,855 - 130,855 Grants 987,324 - 987,324 Total major governmental fund 1,913,563 622,884 2,536,447 Nonmajor governmental funds 682,016 - 401,966 1,083,982 Total funds $ 2,595,579 $ 622,884 $ 401,966 $ 3,620,429 LONG -TERM LIABILITIES Changes in Long -term Liabilities Summary of changes in long -term liabilities during the year ended June 30, 2012 (in $ thousands): W Balance Balance Due July 1, Transfers June 30, Within 2011 Increases Decreases Fiduciary 2012 One Year Bonded indebtedness $ 41,818 2,418 21,415 $ 17,985 $ 1,375 Notes payable 6,827 585 273 5,969 614 County deferral 17,969 443 2 18,410 - - Compensated absences 1,337 41 - - 1,378 92 Other postemployement benefits 3,038 1,750 637 4,151 - Capitalleases 248 211 170 - 289 153 Total $ 71,237 2,445 3,812 40,098 $ 29,772 $ 2,234 W City of Baldwin Park Notes to Financial Statements Year ended June 30, 2012 NOTE 9 LONG -TERM LIABILITIES (CONTINUED) Bonded Indebtedness At June 30, 2012, bonded indebtedness consisted of (in $ thousands): Lease Revenue Bonds: Financing Authority Community Center Pension Obligation Bonds 2007- Series A -1 Total bonded indebtedness Date Final Interest Amount Financing Authority Series A Issued Maturity Rate % Issued Outstanding Financing Authority 4.20-5.75 Series 2003 Dec -03 Oct -04 Aug -34 3.75-5.0 $ 10,840$ 9,290 4,085 Apr -07 Jun -18 5.06 -5.30 12,810 8,695 Fiduciary Funds: 6.65-7.75 Tax Allocation Bonds: 14,205$ Financing Authority Series A Jan -90 San Gabriel River Project May -98 Merged Project Jun -00 Financing Authority 4.20-5.75 Series 2003 Dec -03 Total bonded indebtedness - Fiduciary Total bonded indebtedness $ 23,650$ 17,985 Aug -19 6.65-7.75 $ 14,205$ 3,775 Aug -21 3.75-5.25 11,875 4,875 Sep -30 4.20-5.75 10,215 8,680 Aug -21 1.75-5.25 6,265 4,085 42,560 21,415 $ 66,210 $ 39,400 Sources of Debt Service Special assessment bonds interest and principal redemptions are to be funded by future assessments against properties in the Districts. Interest and principal redemptions for lease revenue bonds and certificates of participation are payable solely from lease payments made by the City to the Financing Authority as the rental for the Community Center and City's corporation yard, respectively. Tax allocation bonds interest and principal redemptions are to be funded by incremental tax revenues derived from the redevelopment project areas. Bond Covenants and Other Requirements The City is in compliance with all the provisions of the bond covenants and the requirements regarding arbitrage rebates. 47 City of Baldwin Park Notes to Financial Statements Year ended June 30, 2012 NOTE 9 LONG -TERM LIABILITIES (CONTINUED) Notes Payable Notes payable is composed of: Section 108 Loan from the Department of Housing and Urban Development (HUD) for the City's real property acquisitions. The loan is payable annually from August 2008 through August 2021 with interest payable semi - annually with rates ranging from 5.25% to 5.46 %. The loan will be repaid through future HUD entitlements. $ 3,832,000 Promissory certificate from the Bank of the West for the City's lease payments. The loan is payable annually from October 2009 through October 2012 with interest payable semi - annually at 4.05 %. 2,137,000 $ 5,969,000 The following are future scheduled Annual Debt Service Requirements (in $ thousands): Year Ending Bonded Notes Capital Total Debt June 30, Indebtedness Payable Leases Total Interest Service 2013 $ 1,375$ 614$ 153 $ 2,142$ 1,276$ 3,418 2014 1,500 645 87 2,232 946 3,178 2015 1,630 676 49 2,355 828 3,183 2016 1,770 710 - 2,480 909 3,389 2017 1,925 744 - 2,669 769 3,438 2018 -2022 3,375 2,580 - 5,955 2,251 8,206 2023 -2027 2,000 - - 2,000 1,362 3,362 2028 -2032 2,550 - - 2,550 796 3,346 2033 -2035 1,860 - - 1,860 142 2,002 Indeterminate - - - - - - Total $ 17,985$ 5,969$ 289 $ 24,243$ 9,279 $ 33,522 Compensated Absences Payable The City's policies relating to compensated absences are described in Note 1. The outstanding balance at June 30, 2012, was $1,378,753. The liability for governmental activities is primarily liquidated from the general fund while the liability for business - ype activities is liquidated from the enterprise funds. City of Baldwin Park Notes to Financial Statements Year ended June 30, 2012 NOTE 10 CAPITAL LEASES The City has lease agreements for vehicles and equipment that meet the criteria for capitalization. The City reserves the right to purchase these items on any lease payment date. For the year ended June 30, 2012, the City entered into a new lease agreement for the police patrol cars for a total of $211,000. The total capital lease obligations at June 30, 2012 amounted to $289,000, net of interest of $11,000. Lease payments for the fiscal year ended June 30, 2012 amounted to approximately $170,000. NOTE 11 FUND BALANCE i • Special Revenue Housing and Community Other Total Development Future Housing Governmental Governmental General Grant Development Authority Grants Funds Funds Fund Balances: Nonspendable Prepaids $ 23,730 $ 23,808 $ - $ 259,756 $ - $ 3,000 $ 310,294 Advances to other funds, net of accrued interest 11,149,522 - - - - - 11,149,522 Loans receivable, net of deferred revenue - - - - - 179,428 179,428 Restricted for Housing and Community - 91,137 - - - - 91,137 Future Development - - 10,469,425 - - - 10,469,425 Business Improvement Fees - - - - - 190,557 190,557 Air Quality Improvement - - - - - 565,001 565,001 Proposition C - - - - - 2,820,250 2,820,250 Street Light and Landscape - - - - - 575,343 575,343 Residential Development Tax - - - - - 4 4 Integrated Waste Management - - - - - 275,589 275,589 Summer Food Program - - - - - 1,129 1,129 Federal Surface Transportation Program - - - - - 676,025 676,025 Assessment District - - - - - 348,789 348,789 State Asset Forfeiture - - - - - 167,629 167,629 Local Law Enforcement Block Grant - - - - - 14,493 14,493 Economic Development Administration - - - - - 512 512 Traffic Congestion Relief AB2928 - - - - - 163,282 163,282 Grants - - - - 380,379 - 380,379 Park Land and Public Art Fees - - - - - 847,602 847,602 Storm Drain NPDS - - - - - 28,172 28,172 General Plan Fees - - - - - 406,919 406,919 Housing Authority - - - 1,143,266 - 1,410,462 2,553,728 City Debt Service Fund - - - - - 32,295 32,295 Pension Obligation Debt Service _ _ _ _ _ 820 820 Baldwin Park Financing Authority Debt Service - - - - - 1,474,543 1,474,543 Building Reserve - - - - - 13,777 13,777 Committed to Economic Development Act Revolving Loan - - - - - 1,649,753 1,649,753 10% Budget Stabilization Fund 2,477,618 - - - - - 2,477,618 Assigned to Loan repayment 606,926 - - - - - 606,926 Unassigned 1,826,473 - - - - (144,174) 1,682,299 Total Fund Balances $ 16,084,269 $ 114,945 $ 10,469,425 $ 1,403,022 $ 380,379 $ 17,335,961 $ 45,788,001 i • City of Baldwin Park Notes to Financial Statements Year ended June 30, 2012 NOTE 11 FUND BALANCE (CONTINUED) The City's Fund Balance Policy delegates authority to the City Chief Executive Officer to assign amounts, which are neither restricted nor committed, to be used for specific purposes for annual financial statement reporting. During the year ended June 30, 2012, the City has assigned fund balances for loan repayment for a total amount of $606,926. When expenditures are incurred for purposes for which both restricted and unrestricted (committed, assigned, or unassigned) fund balances are available, the City's policy is to first apply restricted fund balance. When expenditures are incurred for purposes for which committed, assigned, or unassigned fund balances are available, the City's policy is to first apply committed fund balance, then assigned fund balance, and finally unassigned fund balance. IL1 [ 0111AiP�15*re]►yil►yil111►yil;IL111& 1L1 I9Z910]L1 1111L1M;IL1 [MI *' There are various litigation and claims pending against the City, which have been considered in determining the estimated liability for self- insurance. The outcome of these cases and eventual liability to the City, if any, is unknown at this time. The City estimates that the self- insurance liability and cash reserve are adequate to cover any claims not otherwise covered by insurance. NOTE 13 RETIREMENT PLANS Plan Description: The City of Baldwin Park contributes to the California Public Employees Retirement System (PERS), an agent multiple - employer public employee defined benefit pension plan (miscellaneous plan) and a cost sharing plan (safety plan). PERS provides retirement and disability benefits, annual cost -of- living adjustments, and death benefits to plan members and beneficiaries. PERS acts as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by state statute and City ordinance. Copies of PERS' annual financial report may be obtained from its executive office: 400 P Street, Sacramento, CA 95814. All permanent safety (police) and general personnel working 20 hours or more a week and temporary employees who have worked 40 hours a week for over six months are eligible to participate in PERS. Benefits vest after five years of service. General employees who retire at or after age 55 and police members who retire at or after age 50 with five years of credited service are entitled to retirement benefits. PERS also provides death and disability retirement benefits. These benefit provisions and all other requirements are established by state statute and City ordinance. 50 City of Baldwin Park Notes to Financial Statements Year ended June 30, 2012 NOTE 13 RETIREMENT PLANS (CONTINUED) Funding Policy: Participants are required to contribute 7% (9% for safety employees) of their annual covered salary. The City makes the contributions required of City employees on their behalf and for their account. The City is required to contribute at an actuarially determined rate of annual covered payroll; the current rate is 13.307% for non - safety employees and 24.112% for safety employees. The contribution requirements of plan members and the City are established and may be amended by PERS. PERS Plan Amendments: During fiscal year 2002 -03, PERS required mandatory pooling of plans with less than 100 active members. As a result, the accrued actuarial liability and actuarial value of assets for the City's safety plan have been pooled with other government agencies. As of the date of pooling, differences between the City's normal cost and the pool's normal cost will be amortized over a five year period, at which time, the City's normal cost will approximate the pool's normal cost. Annual Pension Cost: The three -year trend information for PERS (In $ thousands) is presented below: Miscellaneous Fiscal Year Ended 6/30/2010 6/30/2011 6/30/2012 Safety Fiscal Year Ended Annual Pension Percentage of Prepaid Cost (APC) APC Contributed Pension Asset 1,076 100% 1,251 100% 1,389 100% Annual Pension Percentage of Cost (APC) APC Contributed Prepaid Pension Asset 6/30/2010 $ 3,043 100% $ 9,103 6/30/2011 3,173 100% 7,965 6/30/2012 3,529 100% 6,827 Annual Reviews: As part of the CALPERS Board approved plan for fiscal year 2010/2011, the Office of Audit Services (OAS) began reviewing member agencies payroll reporting and member enrollment processes as they relate to retirement and health contracts with CALPERS. The City of Baldwin Park was reviewed in 2010 for processes that occurred from April 2007 to March 2010; a final Public Agency Review Report was issued in February 2012. Of the twelve processes reviewed, they determined that six areas were being reported correctly and six other areas required the current processes to be changed, if they had not been changed already, in order to report information according to the guidelines. The City has been working successfully with CALPERS and has completed five out of the six items that required corrections for prior years. Since CALPERS reviews have become common over the last several years, it is unknown if another review will be conducted in the upcoming year. 51 City of Baldwin Park Notes to Financial Statements Year ended June 30, 2012 NOTE 14 OTHER POSTEMPLOYMENT BENEFITS Plan Description and Funding Policy The City of Baldwin Park provides postretirement health care benefits, as per the requirements of the Public Employees' Retirement System, with which the City contracts for health care benefits, for employees who retire while employed with the City. As provided by the Public Employees' Medical and Hospital and Care Act ( PEMHCA), the City has been under contract with CalPERS for medical plan coverage since at least 1999. As a PEMHCA employer, the City has chosen to satisfy its retiree medical benefit commitment using equal contribution approach, where it contributes exactly the same amount for retirees as contributed toward active employee medical plan coverage. The benefit level varies depending upon the bargaining group that represents the employee. Employees represented by S.E.W. Local 347 will receive a varying flat monthly amount that has been negotiated through the meet and confer process and all other employees will receive the equivalent of the single party premium for the plan of their choice that has been negotiated through the meet and confer process. Following is a description of the current retiree benefit plan: Eligible participants to the plan at January 1, 2011, the date of the latest actuarial valuation are as follows: Eligible active employees: Participating Not currently participating Eligible retirees 52 126 107 Subtotal 233 11l Total 346 S.E.W. employees Nonrepresented Benefit types provided Medical only Medical only Duration of benefits Lifetime Lifetime Required service 5 years 5 years Minimum age 50 50 Dependent coverage Yes Yes City Contribution 100% 100% City Cap $618 per month Minimum MEC allowed per PEMHCA Eligible participants to the plan at January 1, 2011, the date of the latest actuarial valuation are as follows: Eligible active employees: Participating Not currently participating Eligible retirees 52 126 107 Subtotal 233 11l Total 346 City of Baldwin Park Notes to Financial Statements Year ended June 30, 2012 NOTE 14 OTHER POSTEMPLOYMENT BENEFITS (CONTINUED) As of June 30, 2012, the City has not established a trust or equivalent that contains an irrevocable transfer of assets dedicated to providing benefits to retirees in accordance with the terms of the plan and that are legally protected from creditors. The City finances these postemployment benefits on a pay -as- you -go basis. Its share of the annual premiums for these benefits are payable as they become due. The cost of retiree health care insurance benefits is recognized as expenditure as insurance premiums are paid. For fiscal year ended June 30, 2012, $565,724 of postemployment benefit expenditures was paid. Annual OPEB Cost and Net OPEB Obligation The following table shows the components of the City's annual Other Post - employment Benefits (OPEB) cost for the year (based on 30 -year amortization), the amount of benefits and /or insurance premiums actually paid and the City's Net OPEB obligation as of June 30, 2012: Annual required contribution Interest on net OPEB obligation as of June 30, 2011 Adjustment to the ARC Annual OPEB cost (expense) Premium payments including benefit payments Contributions to irrevocable trust Increase in net OPEB obligation Net OPEB obligation - beginning of the year Net OPEB obligation - end of the year Amount 1,750,910 136,694 (136,875) 1,750,729 (637,235) 1,113,494 3,037,652 $ 4,151,146 The Annual Required Contribution (ARC) is an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed 30 years. The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for 2012, 2011 and 2010 were: Percentage of Fiscal Year Annual OPEB Annual OPEB Net OPEB End Cost 6/30/2012 $ 6/30/2011 6/30/2010 1,750,729 1,649,385 1,613,289 53 Cost Contributed Obligation 36% $ 4,151,146 36% 3,037,652 36% 1,984,795 City of Baldwin Park Notes to Financial Statements Year ended June 30, 2012 NOTE 14 OTHER POSTEMPLOYMENT BENEFITS (CONTINUED) Funded Status and Funding Projects The funded status of the plan as of June 30, 2012 based on the plan's most recent actuarial valuation date of January 1, 2011, was: Amount Actuarial accrued liability (AAL) $ 24,666,275 Actuarial value of plan assets - Unfunded actuarial accrued liability (UAAL) $ 24,666,275 Covered payroll $ 11,281,105 UAAL as a percentage of covered payroll 219% Normal cost $ 649,722 The normal cost for the plan is the amount that the liabilities are expected to increase during the year based on increased eligibility and service. Normal cost is the value of benefits expected to be earned during the year, based on certain methods and assumptions. The Schedule of Funding Progress for OPEB is presented below. As presented based on the Actuarial Study of Retiree Health Liabilities as of January 1, 2011, the Unfunded Actuarial Accrued Liability (UAAL) ratio to covered payroll has increased from 204% to 216 %. Since the City has not established a trust, the plan is unfunded therefore the actuarial value of plan assets remains at zero. Unfunded Actuarial Unfunded Accrued Entry Age Accrued Liability Actuarial Liability Actuarial Actuarial Actuarial (Excess Assets) as Percentage of Valuation Accrued Asset [(A) -(B)] Funded Ratio Covered Covered Payroll Date Liability (AAL) Value (UAAL) [(B) /(A)} Payroll {[(A)- (B)] /(E)} (A) (B) ( C) (D) (E) (F) January 1, 2009 $ 22,320,143 $ $ 22,320,143 0.00% $ 10,932,861 204% January 1, 2011 23,548,132 23,548,132 0.00% 10,926,010 216% Actuarial Methods and Assumptions Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented in the required supplementary information section, presents multi -year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for the benefits. 54 NOTE 14 City of Baldwin Park Notes to Financial Statements Year ended June 30, 2012 OTHER POSTEMPLOYMENT BENEFITS (CONTINUED) Significant methods and assumptions are as follows: Actuarial valuation date January 1, 2011 Actuarial cost method Entry Age Normal cost, level percent of pay Amortization method Remaining amortization period Asset valuation method Actuarial assumptions: Discount rate Investment rate of return Projected salary increases Inflation rate Healthcare cost trend rates: Medical - PPO Medical - HMO Level percent of pay 27, closed Market value of assets ($0; plan has not yet been funded) 4.50% N/A 3.25% 3.25% See Table Below See Table Below Effective Premium Effective Premium July 1 Increase July 1 Increase 2012 9.00% 2016 7.00% 2013 8.50% 2017 6.50% 2014 8.00% 2018 5.50% 2015 7.50% 2019 & Later 4.50% In the January 2011 actuarial valuation, the entry age normal actuarial cost method was used to value liabilities. Under the entry age normal cost method, an average age at hire and average retirement age are determined for eligible employees. The actuarial assumptions included (1) a 4.5% discount rate, (2) a 3.25% annual salary increase and (3) medical plan premiums (cost) rate increase of 9.5% for year 2009 decreasing by .5% every year until year 2017. The UAAL is being amortized as a level percentage of projected payroll over 30 years. Amortization of the unfunded AAL has been determined on a level percent of payroll over a closed 30 -year period established in the fiscal year ended June 30, 2009. The remaining amortization years used in developing the ARC for the City's fiscal year ending June 30, 2012 was 28 years. NOTE 15 DEFERRED COMPENSATION PLAN The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all City employees, permits them to defer a portion of their salaries until future years. The deferred compensation is not available to employees until termination, retirement, death or unforeseeable emergency. The plan assets are under the participants control and are principally invested in demand deposits and mutual funds and are held in trust for the exclusive benefit of the participants and their beneficiaries. At June 30, 2012, the amount held by trustee for employees is $6,451,900. 55 City of Baldwin Park Notes to Financial Statements Year ended June 30, 2012 NOTE 16 INSURANCE PROGRAM Self- Insurance Programs The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions, injuries to employees; and natural disasters. These risks are covered by commercial insurance purchased from independent third parties. The City is a participant in the Independent Cities Risk Management Authority ( ICRMA), a public entity risk pool, formed to enable individual cities to join together to obtain certain liability and workers' compensation insurance coverages as a group, to self- insure, where necessary, and to obtain adequate liability coverages at an affordable cost. ICRMA has 31 member cities, and each city appoints one member to the ICRMA Governing Board.The City has a 2.47% participation in ICRMA, which is computed based on the City's self- insurance retention levels under the liability coverages selected. The City pays an annual premium to ICRMA for this liability and workers' compensation insurance coverage. ICRMA is considered a self- sustaining risk pool that will provide coverage for its members for up to $20,000,000 ($2,000,000 per occurrence) for liability claims, $1,000,000 for workers' compensation claims and $1,000,000 for employer's liability claims. Changes in the balances of claims liabilities for the three years ended June 30, 2012 were as follows: Year Ended Insurance June 30, Beginning Balance Claims and Changesin Estimates Claims Ending Payments Balance General Liability 2012 $ 1,032,403 $ (148,879) $ 98,749 $ 784,775 2011 866,128 189,980 23,705 1,032,403 2010 862,843 10,938 7,653 866,128 Workers' Compensation 2012 6,372,899 1,679,297 778,610 7,273,586 2011 5,331,065 1,825,315 783,481 6,372,899 2010 5,012,604 390,948 72,487 5,331,065 There were no significant changes in insurance coverage as compared to last year and settlements have not exceeded coverage in any of the past three fiscal years. Purchased Insurance Property Insurance — The properties of the City of Baldwin Park are covered by commercial insurance purchased from independent third parties. The City is currently insured according to a schedule of covered property submitted by the City to the insurance company. The total property insurance coverage is $38,397,400 at 90% coinsurance. Premiums for the coverage are paid annually and are not subject to retroactive adjustments. Adequacy of Protection During the past fiscal years none of the above programs of protection have had settlements or judgments that exceeded pooled or insured coverage. There have been no significant reductions in pooled or insured liability coverage from coverage in the prior year. 56 City of Baldwin Park Notes to Financial Statements Year ended June 30, 2012 NOTE 17 RISKS AND UNCERTAINTIES The City invests in various investment securities, including Local Agency Investment Fund (LAIF) which are exposed to various risks such as interest rate, market, and credit risks. Because of the level of risks associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect the values of investments as of June 30, 2012. The actual amount of exposure as of December 20, 2012 is not determinable. NOTE 18 NEW GOVERNMENTAL ACCOUNTING STANDARDS BOARD (GASB) PRONOUNCEMENTS GASB No. 61 - GASB has issued Statement No. 61, The Financial Reporting Entity: Omnibus, an amendment of GASB Statements No. 14 and No. 34. This Statement modifies existing requirements for the assessment of potential component units in determining what should be included in the financial reporting entity, and financial reporting entity display and disclosure requirements. It applies to financial reporting by primary governments and other stand -alone governments, and to the separately issued financial statements of governmental component units. In addition, this Statement should be applied to nongovernmental component units when they are included in a governmental financial reporting entity. The provisions of this Statement are effective for financial statements for periods beginning after June 15, 2012. GASB No. 62 - GASB has issued Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre - November 30, 1989 FASB and AICPA Pronouncements. This Statement establishes accounting and financial reporting standards for the financial statements of state and local governments. The requirements of this Statement apply to accounting and financial reporting for governmental activities, business -type activities, and proprietary funds. The requirements in this Statement are effective for financial statements for periods beginning after December 15, 2011. GASB No. 63 - GASB has issued Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position. This Statement provides financial reporting guidance for deferred outflows of resources and deferred inflows of resources and renames the residual measure as net position, rather than net assets. The requirements of this Statement will improve financial reporting by standardizing the presentation of deferred outflows of resources and deferred inflows of resources and their effects on a government's net position. It alleviates uncertainty about reporting those financial statement elements by providing guidance where none previously existed. The provisions of this Statement are effective for financial statements for periods beginning after December 15, 2011. 57 City of Baldwin Park Notes to Financial Statements Year ended June 30, 2012 NOTE 18 NEW GOVERNMENTAL ACCOUNTING STANDARDS BOARD (GASB) PRONOUNCEMENTS (CONTINUED) GASB No. 65 - Items Previously Reported as Assets and Liabilities. This Statement establishes accounting and financial reporting standards that reclassify, as deferred outflows of resources or deferred inflows of resources, certain items that were previously reported as assets and liabilities and recognizes, as outflows of resources or inflows of resources, certain items that were previously reported as assets and liabilities. This Statement also provides other financial reporting guidance related to the impact of the financial statement elements deferred outflows of resources and deferred inflows of resources, such as changes in the determination of the major fund calculations and limiting the use of the term deferred in financial statement presentations. The requirements of this Statement will improve financial reporting by clarifying the appropriate use of the financial statement elements deferred outflows of resources and deferred inflows of resources to ensure consistency in financial reporting. The provisions of this Statement are effective for financial statements for periods beginning after December 15, 2012. NOTE 19 SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY Pursuant to AB X1 26, which become effective in late June 2011, as upheld by the California Supreme Court in California Redevelopment Association, et al. v. Ana Matosantos, et al. (53 Cal.4th 231(2011)), redevelopment agencies throughout the State of California were dissolved as of February 1, 2012. AB 1484, which became effective June 27, 2012, amended and supplemented provisions of AB X1 26. AB X1 26 and AB 1484, together, are referred to below as the "RDA Dissolution Act." A successor agency is constituted concurrently with the dissolution of each redevelopment agency. Each successor agency is charged with the wind -down of the operations of its former redevelopment agency. A successor agency is not authorized to engage in new redevelopment activities, except for work related to existing enforceable obligations, subject to provisions of the RDA Dissolution Act. The RDA Dissolution Act also provides for the establishment of an oversight board for each successor agency. Certain successor agency actions are subject to the prior approval of the oversight board. The oversight board is also empowered to direct certain successor agency actions. Each successor agency is required to prepare a Recognized Obligation Payment Schedule ( "ROPS ") for each six month period (from January 1 through June 30 and from July 1 through December 31). Each ROPS must be approved by the oversight board and the State Department of Finance. A successor agency is not permitted to make payments except pursuant to an approved ROPS. 58 City of Baldwin Park Notes to Financial Statements Year ended June 30, 2012 NOTE 19 SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (CONTINUED) Under the RDA Dissolution Act, the portion of property tax collected by the county auditor - controller that would have been tax increment of the former redevelopment agency is deposited in a Redevelopment Property Tax Trust Fund ( "RPTTF "). Every six months, the county auditor - controller makes disbursements from the RPTTF to the successor agency in accordance with the RDA Dissolution Act, in amounts approved for payment of enforceable obligations and administrative costs allowance as shown on the approved ROPS. To the extent that there are residual moneys remaining in the RPTTF after the deduction for administrative expenses of the county auditor - controller, pass- through payments and disbursement to the successor agency based on the ROPS, the residual moneys are disbursed to various taxing entities. The RDA Dissolution Act directs the State Controller of the State of California to review the propriety of any transfers of assets between redevelopment agencies and other public bodies that occurred after January 1, 2011. If the public body that received such transfers is not contractually committed to a third party for the expenditure or encumbrance of those assets, the State Controller is required to order the available assets to be transferred to the public body designated as the successor agency by the Bill. In accordance with the timeline set forth in the Bill (as modified by the California Supreme Court on December 29, 2011) all redevelopment agencies in the State of California were dissolved and ceased to operate as a legal entity as of February 1, 2012. In fiscal year 2011, the former redevelopment agency repaid the City certain advances amounting to $3.5 million. These repayments were set aside by the City in the Future Development Fund for economic development projects. There are also unpaid obligations resulting from prior year advances from the General Fund to the former redevelopment agency amounting to $18,427,954 which have not been repaid. The Department of Finance questioned whether these advances received from the City in prior years constitute valid enforceable obligations. However, Management believes, in consultation with legal counsel, that these obligations of the former redevelopment agency due to the City are valid enforceable obligations payable by the successor agency trust under the requirements of the Bill. The City's position on this obligation is not a position of settled law and there is considerable legal uncertainty regarding this issue. As mentioned in Note 6, the resolution of the enforceability of this obligation and the potential for this obligation to be reinstated following the due diligence process as allowed under Assembly Bill 1484 is expected to be completed by June 2013. As previously stated, all redevelopment agencies in the State of California were dissolved and ceased to operate as a legal entity as of February 1, 2012. Prior to that date, the final seven months of the activity of the redevelopment agency continued to be reported in the governmental funds of the City. After the date of dissolution, the assets and activities of the dissolved redevelopment agency are reported in a fiduciary funds (successor agency fund) in the financial statements of the City. 59 City of Baldwin Park Notes to Financial Statements Year ended June 30, 2012 NOTE 19 SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (CONTINUED) The transfer of the assets and liabilities of the former redevelopment agency as of February 1 , 2012 (effectively the same date as January 31, 2012) from governmental funds of the City to fiduciary funds (successor agency fund) was reported in the governmental funds as an extraordinary gain in the governmental fund financial statements. The receipt of these assets and liabilities as of January 31, 2012 was reported in the agency trust fund as an extraordinary loss. Because of the different measurement focus of the governmental funds (current financial resources measurement focus) and the measurement focus of the trust funds (economic resources measurement focus), the extraordinary gain recognized in the governmental funds was not the same amount as the extraordinary loss that was recognized in the fiduciary fund financial statements. The difference between the extraordinary loss recognized in the fund financial statements and the extraordinary gain recognized in the fiduciary fund financial statements is reconciled as follows: Total extraordinary gain reported in governmental funds - increase to net assets of the Successor Agency Trust Fund $ 9,492,143 Loans receivable not expected to be collected in the current period are offset by unearned revenue in the funds. They have been recognized and are in net assets in the government -wide financial statements. (2,562,586) Interest on loans receivable not expected to be collected in the current period are offset by unearned revenue in the funds. They have been recognized and are in net assets in the government -wide financial statements. (516,169) Deferred charges represent costs associated with the issuance of long -term debt, which are deferred and amortized over the life of the debt. The costs are reported as expenditures of current financial resources in the governmental funds (157,583) Accrued bond interest reported in the government -wide financial statements - decrease to net assets of the Successor Agency Trust Fund 471,416 Long -term debt reported in the government -wide financial statements - decrease to net assets of the Successor Agency Trust Fund Tax allocation bonds $ 21,415,000 Notes payable 273,490 County deferral 18,136,703 39,825,193 Net decrease to net assets of the Successor Agency Trust Fund as a result of initial transfers (equal to amount of extraordinary gain reported in the government -wide finanical statements of the City) $ 46,552,414 Information about the Outstanding Bonds of the Successor Agency Trust Fund Changes in Long -term Liabilities Summary of changes in long -term liabilities during the year ended June 30, 2012 ($ in thousands): W City of Baldwin Park Notes to Financial Statements Year ended June 30, 2012 NOTE 19 SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (CONTINUED) Balance Balance Due July 1, June 30, Within 2011 Increases Decreases 2012 One Year Bonded indebtedness $ 21,415 - - $ 21,415 $ 1,210 Notes payable 273 - (273) - - County deferral 18,410 - - 18,410 - $ 40,098 - (273) 39,825 $ 1,210 Bonded Indebtedness At June 30, 2012, bonded indebtedness consisted of ($ in thousands): Bond Covenants and Other Requirements The Agency is in compliance with all the provisions of the bond covenants and the requirements on arbitrage rebate calculations. County Deferral The Agency and County entered into an agreement whereby the County will defer tax increment (County Deferral) generated within the project area to meet the Agency's debt service obligations. Only the County Deferrals for Sierra Vista accrue interest of 2.42 %. The County Deferrals are to be repaid whenever there is an excess of property tax revenues received by the Agency in excess of its bonded debt payment requirements. The County Deferrals are recorded as revenue when received by the Agency. At June 30, 2012, the balance of the County Deferrals including interest was $18,136,703. Annual Debt Service Requirements ($ in thousands): Date Final Interest Amount Indebtedness Issued Maturity Rate % Issued Outstanding Tax Allocation Bonds: Service 2013 $ 1,210 $ 1,197$ Financing Authority Series A Jan -90 Aug -19 6.65-7.75 $ 14,205$ 3,775 San Gabriel River Project May -98 Aug -21 3.75-5.25 11,875 4,875 Merged Project Jun -00 Sep -30 4.20-5.75 10,215 8,680 Financing Authority 2,440 2018 -2022 7,900 2,964 Series 2003 Dec -03 Aug -21 1.75-5.25 6,265 4,085 Total bonded indebtedness 1,705 $ 42,560 $ 21,415 Sources of Debt Service 9,627 $ 31,042 Tax allocation bonds interest and principal redemptions are to be funded by incremental tax revenues derived from the redevelopment project areas. Bond Covenants and Other Requirements The Agency is in compliance with all the provisions of the bond covenants and the requirements on arbitrage rebate calculations. County Deferral The Agency and County entered into an agreement whereby the County will defer tax increment (County Deferral) generated within the project area to meet the Agency's debt service obligations. Only the County Deferrals for Sierra Vista accrue interest of 2.42 %. The County Deferrals are to be repaid whenever there is an excess of property tax revenues received by the Agency in excess of its bonded debt payment requirements. The County Deferrals are recorded as revenue when received by the Agency. At June 30, 2012, the balance of the County Deferrals including interest was $18,136,703. Annual Debt Service Requirements ($ in thousands): 61 Bonded Indebtedness Total Debt Year Ending June 30, - Principal Interest Service 2013 $ 1,210 $ 1,197$ 2,407 2014 1,290 1,128 2,418 2015 1,370 1,053 2,423 2016 1,460 972 2,432 2017 1,555 885 2,440 2018 -2022 7,900 2,964 10,864 2023 -2027 4,925 1,225 6,150 2028 -2032 1,705 203 1,908 Total $ 21,415$ 9,627 $ 31,042 61 NOTE 20 NOTE 22 City of Baldwin Park Notes to Financial Statements Year ended June 30, 2012 CONTRACT COMMITMENT The City has a variety of agreements with private parties relating to the construction of the Baldwin Park Transit Center Parking Structure. The financing of such contracts is provided primarily from grants and various allocations that the City expects to receive from Prop C and Measure R. The City has committed to approximately $8.2 million of open constructions contracts as of June 30, 2012. Total Paid / Contract with Completed Change Change as of June Balance to Project Name Contract Orders Orders 30, 2012 Complete Transit Center Parking Structure Delterra $ 688,536 $ - $ 688,536 $ 337,665 $ 350,871 PCL Construction Services Inc 8,631,300 714,133 9,345,433 1,438,716 7,906,717 Watry Design Inc 595,900 113,041 708,941 708,941 - Total $ 9,915,736 $ 827,174 $ 10,742,910 $ 2,485,322 $ 8,257,588 SUBSEQUENT EVENTS The City has evaluated events subsequent to June 30, 2012 to assess the need for potential recognition or disclosure in the financial statements. Such events were evaluated through December 26, 2012, the date the financial statements were available to be issued. Based upon this evaluation, it was determined that no subsequent events occurred that require recognition or additional disclosure in the financial statements. CALIFORNIA PUBLIC EMPLOYEES' PENSION REFORM ACT After spending close to a year exploring and debating reforms to public pension systems in California, lawmakers in Sacramento passed Assembly Bill 340 (AB 340) on August 31, 2012. AB 340 known as the California Public Employees' Pension Reform Act of 2013 ( PEPRA) which amends various provisions of the Public Employees' Retirement Law (PERL) and County Employee's Retirement Law of 1937 (CERL), was signed into law by the Governor on September 12, 2012. PEPRA will take effect on January 1, 2013. Management asserts that PEPRA will not have a significant impact on the City's June 30, 2012 financial statements. 62 (This page intentionally left blank.) 63 REQUIRED SUPPLEMENTARY INFORMATION Revenues Taxes Licenses and permits Fines, forfeitures and penalties Use of money and property Intergovernmental Charges for services Other Expenditures Current: General government Public safety Public works Community development Recreation services Capital outlay: Public works Community development General Fund Variance with Budgeted Amounts Final Budget Positive Original Final Actual (Negative) $ 19,669,400 19,669,400 19,885,434 216,034 565,000 565,000 538,895 (26,105) 1,381,000 1,381,000 1,119,318 (261,682) 250,000 250,000 218,006 (31,994) 166,120 166,120 259,153 93,033 1,577,530 1,577,530 1,353,864 (223,666) 54,000 104,000 58,953 (45,047) Total revenues 23,663,050 23,713,050 23,433,623 (279,427) 2,222,440 2,222,440 1,999,045 223,395 16,590,590 16,640,590 16,357,554 283,036 191,430 239,911 253,434 (13,523) 933,780 933,780 984,665 (50,885) 2,871,590 2,871,590 2,913,501 (41,911) 115,000 115,000 40,015 74,985 Total expenditures 22,924,830 23,023,311 22,548,214 475,097 Excess (deficiency) of revenues over expenditures Other financing sources (uses) Transfers in Transfers out Net other financing sources (uses) 738,220 689,739 885,409 195,670 (1,327,950) (1,327,950) (1,878,293) (550,343) (1,327,950) (1,327,950) (1,878,293) (550,343) Net change in fund balances before extraordinary items (589,730) (638,211) (992,884) (354,673) Net change in fund balances (589,730) (638,211) (992,884) (354,673) Beginning fund balances 17,077,153 17,077,153 17,077,153 Ending fund balances $ 16,487,423 16,438,942 16,084,269 (354,673) 0 City of Baldwin Park Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Major Governmental Funds Year ended June 30, 2012 Special Revenue Housing and Community Development Grant Future Development Variance with Variance with Budgeted Amounts Final Budget Budgeted Amounts Final Budget Positive Positive Original Final Actual (Negative) Original Final Actual (Negative) - - 7,911 7,911 20,162 20,162 4,548,580 4,787,569 1,501,260 (3,286,309) - - - - 215,408 215,408 - - 4,548,580 4,787,569 1,724,579 (3,062,990) 20,162 20,162 115,870 115,870 935,425 (819,555) 38,330 43,016 36,956 6,060 51,000 54,506 51,002 3,504 2,687,010 2,830,185 624,487 2,205,698 87,490 63,058 57,216 5,842 1,067,500 1,179,554 112,696 1,066,858 4,047,200 4,286,189 1,817,782 2,468,407 - - 501,380 501,380 (93,203) (594,583) 20,162 20,162 65 369,000 369,000 (501,380) (501,380) (501,380) - (501,380) (501,380) (132,380) 369,000 - - (225,583) (225,583) 20,162 20,162 (225,583) (225,583) - - 20,162 20,162 340,528 340,528 340,528 10,449,263 10,449,263 10,449,263 - 340,528 340,528 114,945 (225,583) - 10,449,263 10,469,425 20,162 65 City of Baldwin Park Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Continued) Major Governmental Funds Year ended June 30, 2012 Revenue Housina Authoritv Grants Expenditures Variance with Variance with Current: Budgeted Amounts Final Budget Budgeted Amounts Final Budget General government 129,220 Positive 108,934 20,286 - Positive 18,203 Original Final Actual (Negative) Original Final Actual (Negative) Revenues (26,123) Public works - - - - - 15,750 Taxes $ - - - - 400,000 400,000 293,287 (106,713) Use of money and property 9,000 9,000 5,809 (3,191) - - 180,924 180,924 Intergovernmental 5,167,750 5,167,750 3,437,442 (1,730,308) 7,813,080 7,416,718 2,776,052 (4,640,666) Charges for services - - - - 93,090 93,090 230,118 137,028 Other 79,000 79,000 70,073 (8,927) 44,000 44,000 18,203 (25,797) Total revenues 5,255,750 5,255,750 3,513,324 (1,742,426) 8,350,170 7,953,808 3,498,584 (4,455,224) Expenditures Current: General government 129,220 129,220 108,934 20,286 - 1,100 18,203 (17,103) Public safety - - - - 508,090 533,588 559,711 (26,123) Public works - - - - - 15,750 10,098 5,652 Community development 5,143,940 5,144,940 4,947,023 197,917 316,080 263,003 271,210 (8,207) Recreation services 20 20 196 (176) - - 7,126 (7,126) Capital outlay: Community development 5,950 4,950 - 4,950 7,526,000 7,130,217 2,858,549 4,271,668 Total expenditures 5,279,130 5,279,130 5,056,153 222,977 8,350,170 7,943,658 3,724,897 4,218,761 Excess (deficiency) of revenues over expenditures (23,380) (23,380) (1,542,829) (1,519,449) - 10,150 (226,313) (236,463) Other financing sources (uses) Transfers in - 269,730 269,730 Transfers out (13,140) (13,140) (41,654) (28,514) (11,250) - 11,250 Net other financing sources (uses) (13,140) (13,140) (41,654) (28,514) (11,250) 269,730 280,980 Net change in fund balances before extraordinary items (36,520) (36,520) (1,584,483) (1,547,963) (1,100) 43,417 44,517 Net change in fund balances (36,520) (36,520) (1,584,483) (1,547,963) (1,100) 43,417 - Beginning fund balances 2,987,505 2,987,505 2,987,505 - 336,962 336,962 336,962 Ending fund balances $ 2,950,985 2,950,985 1,403,022 (1,547,963) - 335,862 380,379 •• City of Baldwin Park Schedule of Funding Progress Year ended June 30, 2012 Defined Benefit Pension Plan (California Public Employees' Retirement System) (in $ thousands) Safety Valuation Actuarial Date Liabilities (A) 6/30/2007 $ 7,986,055 6,826,599 1,159,456 6/30/2008 8,700,468 7,464,928 1,235,540 6/30/2009 9,721,675 8,027,159 1,694,517 6/30/2010 10,165,475 8,470,235 1,695,240 6/30/2011 10,951,745 9,135,654 1,816,091 85.5% 831,608 139.42% 85.8% 914,841 135.06% 82.6% 973,814 174.01% 83.3% 955,981 177.33% 83.4% 949,833 191.20% (The schedule of the funding progress is for the entire risk pool) (In $ thousands) UAAL as a % of Actuarial Unfunded Funded Covered Covered Assets Liabilities Ratio Payroll Payroll (B) (B -A) (A/B) (C) [(B -A) /C] 6/30/2007 $ 7,986,055 6,826,599 1,159,456 6/30/2008 8,700,468 7,464,928 1,235,540 6/30/2009 9,721,675 8,027,159 1,694,517 6/30/2010 10,165,475 8,470,235 1,695,240 6/30/2011 10,951,745 9,135,654 1,816,091 85.5% 831,608 139.42% 85.8% 914,841 135.06% 82.6% 973,814 174.01% 83.3% 955,981 177.33% 83.4% 949,833 191.20% (The schedule of the funding progress is for the entire risk pool) (In $ thousands) Unfunded Actuarial Miscellaneous Entry Age Accrued Liability Actuarial Liability Actuarial Actuarial Actuarial UAAL as as Percentage of Valuation Accrued a % of Valuation Actuarial Actuarial Unfunded Funded Covered Covered Date Liabilities Assets Liabilities Ratio Payroll Payroll (A) (B) (B -A) (A/B) (C) [(B -A) /C] 6/30/2007$ 41,722 46,483 -4,761 111.4% 5,576 - 85.38% 6/30/2008 44,632 42,337 2,295 94.9% 5,929 38.71% 6/30/2009 48,823 43,584 5,239 89.3% 5,624 93.15% 6/30/2010 53,040 45,458 7,582 85.7% 6,448 117.59% 6/30/2011 56,208 47,497 8,711 84.5% 6,977 124.85% (The schedule of the funding progress is for the entire risk pool) Postemployment Benefit Plan 67 Unfunded Actuarial Unfunded Accrued Entry Age Accrued Liability Actuarial Liability Actuarial Actuarial Actuarial (Excess Assets) as Percentage of Valuation Accrued Asset [(A) -(B)] Funded Ratio Covered Covered Payroll Date Liability (AAL) Value (UAAL) [(B) /(A)} Payroll {[(A)- (B)] /(E)} (A) (B) ( C) (D) (E) (F) January 1, 2009 $ 22,320,143 $ - $ 22,320,143 0.00% $ 10,932,861 204% January 1, 2011 23,548,132 23,548,132 0.00% 10,926,010 216% 67 City of Baldwin Park Notes to Required Supplementary Information June 30, 2012 Basis of Presentation Budgets for the General Fund and certain Special Revenue Funds are adopted on a basis consistent with generally accepted accounting principles ( "GAAP "). Accordingly, actual revenues and expenditures are comparable to budgeted amounts. Budgetary Control and Accounting The City budget is prepared under the direction of the Chief Executive Officer. Revenues are budgeted by source. Expenditures are budgeted by function, with sub classifications by department, cost center, object of expenditure, and project. A cost center represents a particular area of operations within a department; for example, within the Police Department there are cost centers for the Chief of Police, Patrol, Investigations, Administration, Communications, and Records. Total budgeted expenditures of each Governmental Fund may not legally exceed such fund's appropriations. The City Council approves total budgeted appropriations and any amendments to total appropriations made during the year. This "appropriated budget" covers substantially all City expenditures, with the exception of Assessment District and Low /Moderate Income Housing Special Revenue Funds and Debt Service and Capital Projects funds, which have legally authorized ,,non appropriated budgets ". Department heads are authorized to transfer budgeted amounts up to $10,000 between cost centers and any amount which does not alter total budgeted appropriations to a cost center, the Chief Executive Officer is authorized to transfer amounts in excess of $10,000. City Council approval is required for any overall increase in total appropriations to a fund. The legal level of budgetary control is the fund level. All appropriations lapse at year -end and are appropriated and budgeted again, if necessary. Supplemental appropriations during the year ended June 30, 2012 were not significant. Formal budgetary integration is employed as a management control device. Commitments for materials and services, such as purchase orders and contracts, are recorded during the year as encumbrances to assist in controlling expenditures. Such encumbrances are reappropriated into the City's budget for the next fiscal year. Under Article XIII B of the California Constitution (the Gann Spending Limitation Initiative), the City is restricted as to the amount of annual appropriations from the proceeds of taxes. If proceeds of taxes exceed allowed appropriations, the excess must either be refunded to the State Controller or returned to the taxpayers through revised rates, revised fee schedules or other arrangements. For the fiscal year ended June 30, 2012, proceeds of taxes did not exceed allowed appropriations. .: City of Baldwin Park Notes to Required Supplementary Information June 30, 2012 Expenditures in Excess of Appropriations Expenditures for the year ended June 30, 2012 exceeded the appropriation by the following amounts in the following funds: Nonmajor Special Revenue Fund Federal Asset Forfeiture Bicycle and Pedestrian Safety Street Light and Landscape Summer Food Program Prop A Parks AM 7MOO OM 1 17 ► I, MI We 252,657 35,202 136,022 55,942 8,790 55,041 (This page intentionally left blank.) SUPPLEMENTARY INFORMATION City of Baldwin Park Description of Nonmajor Governmental Funds SPECIAL REVENUE FUNDS The Special Revenue Funds account for the proceeds of specific sources that are legally restricted for expenditures related to specific purposes. Funds included are: Business Improvement Fees To account for the Parking and Business Improvement Area Law (AB -1693) revenue. The revenue is collected through a Citywide Business Improvement District and used by the Chamber of Commerce, under agreement with the City, to promote local business activities. Air Quality Improvement To account for monies received from the South Coast Air Quality Management District. These monies are to be used for programs that reduce air pollution from motor vehicles. Federal Asset Forfeiture Fund To account for monies received from Federal agencies in Asset Forfeiture cases. These monies are restricted solely for law enforcement purposes. Park Maintenance District To account for revenues received from a City -wide Park Maintenance assessment district. The District is responsible for landscaping, tree trimming, irrigation and maintenance of parks within the City. State Gasoline Tax Fund To account for the City's share of tax revenues collected by the State on the sale of fuel for motor vehicles. The use of these funds is restricted to the construction, improvement, or maintenance of public streets. Bicycle and Pedestrian Safety To account for revenues received from the State under the Transportation Development Act. Their use is restricted to the construction of bicycle and pedestrian facilities. Prop A Fund To account for the City's share of an additional one -half percent sales tax that was approved by the electorate in November 1980 and is collected by the County of Los Angeles to finance certain transportation projects. Prop C Fund To account for the City's share of a sales tax increase approved by Los Angeles County voters in 1990 to fund transportation projects. Economic Development Act To account for the activity of several revolving business loan Revolving Loan Fund programs established with grant revenues made available through the Federal Economic Development Act. Street Light and Landscape To account for revenues received from a citywide Landscape Fund Maintenance District. The District is responsible for the maintenance of streetlights and the landscaping of median islands, parkways, street trees, and city parks. U City of Baldwin Park Description of Nonmajor Governmental Funds SPECIAL REVENUE FUNDS (CONTINUED) Residential Development Tax To account for fees received from developers constructing new residential units. These monies are used to help defray the cost of providing public services for the new residents. Integrated Waste Management To account for revenues received from AB939 fees. These Fund monies are used for waste management projects. Summer Food Program Fund To account for revenues received from the USDA, which are used to provide meals to youths. Federal Surface Transportation To account for monies received from the Federal government to Program Fund improve designated public right -of -ways. Prop A Parks Fund To account for monies received from the County to construct and improve parks. Assessment District Fund To account for the revenues collected through assessments of property owners within Assessment District 93 -1. Assessment District 93 -1 was formed to construct certain public improvements. Supplemental Law Enforcement To account for monies received from the State allocated by Service Fund AB3229 of 1996 for the Citizen Option for Public Safety (COPS) Program. State Asset Forfeiture Fund To account for monies received from State agencies in Asset Forfeiture cases. These monies are restricted solely for law enforcement purposes. Local Law Enforcement Block To account for monies received from the Federal government to Grant Fund be used for basic law enforcement purposes. Economic Development To account for monies received from the Economic Development Administration Grant Administration to improve designated public right -of -ways. Traffic Congestion Relief This fund was created to monitor the use of funds provided by the AB 2928 State of California for street and highway pavement maintenance, rehabilitation and reconstruction of necessary associated facilities such as drainage and traffic control devices. Energy Conservation This fund is used to account for the expenditures of the new energy efficient program that provides for non - energy related capital improvements. This fund is substantially funded out of current state and local grants, energy and operational savings. Parkland (Quimby) May only be solely utilized for the acquisition of new and rehabilitation of existing community park and recreational facilities. Storm Drain NPDS These are developer fees to be used for storm drain protection, master planning updates and system upgrade. CalHOME Grant This fund is used to account for revenues and expenditures for grants restricted for residential rehabilitation program. 71 City of Baldwin Park Description of Nonmajor Governmental Funds SPECIAL REVENUE FUNDS (CONTINUED) General Plan/Technology May be utilized toward activities that support and implement the goals and policies contained within the General Plan (i.e. Housing Element updates and Zoning Code changes). The technology portion of this fee shall only be utilized toward the purchase and on -going maintenance of an electronic permitting system for primary use by Building, Planning, Code Enforcement and Public Works. Measure R 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. DEBT SERVICE FUND Debt Service Fund is used to account for the accumulation of resources for, and the payment of debt. City This fund is used to account for the receipts and debt service payments on the City's assessment districts. Pension Obligation This fund is used to account for the receipts and debt service payments on the pension obligation bond. Baldwin Park Financing This fund accounts for the receipt of revenues and payment of debt Authority Debt Service incurred for the City's projects. Fund Redevelopment Agency Accounts for the receipt of resources and payment of debt incurred Debt Service Funds to develop the redevelopment project areas during the period July 1, 2011 through January 31, 2012. CAPITAL PROJECTS FUND Capital project fund is used to account for financial resources to be used for the acquisition or construction of major capital facilities. Building Reserve This fund is used to account for the receipt of resources for the 2004 Community Center Lease Revenue Bonds. Redevelopment Agency This fund is used to account for financial resources to be used for Capital Project Funds the acquisition or construction of major capital facilities in the redevelopment project areas during the period July 1, 2011 through January 31, 2012. 72 Assets Pooled cash and investments Cash with fiscal agent Intergovernmental receivables Loans receivable Other receivables, net Prepaids Liabilities and fund balances Liabilities Accounts payable Deposits and others Due to other funds Deferred revenue Fund balances Nonspendable Loans receivable Prepaid items Restricted Special revenue funds Debt service funds Capital projects funds Committed Unrestricted Unassigned City of Baldwin Park Combining Balance Sheet Nonmajor Governmental Funds June 30, 2012 Special Capital Revenue Debt Service Projects Funds Funds Funds Totals $ 16,338,672 32,856 13,832 $ 16,385,360 - 1,688,255 - 1,688,255 610,092 - 610,092 179,428 - 179,428 13,293 44 13,337 3,000 - - 3,000 Total assets $ 17,144,485 1,721,155 13,832 $ 18,879,472 $ 681,961 55 $ 682,016 401,966 - - 401,966 66,604 213,497 280,101 179,428 - - 179,428 Total liabilities 1,329,959 213,497 55 1,543,511 Total fund balances Total liabilities and fund balances 179,428 179,428 3,000 3,000 14,126,520 - 14,126, 520 - 1,507,658 - 1,507,658 - - 13,777 13,777 1,649,752 - 1,649,752 (144,174) - - (144,174) 15,814,526 1,507,658 13,777 17,335,961 $ 17,144,485 1,721,155 13,832 $ 18,879,472 73 City of Baldwin Park Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds Year ended June 30, 2012 Expenditures Special Capital Current: Revenue Debt Service Projects General government Funds Funds Funds Totals Revenues 1,101,234 - 1,101,234 Taxes $ 2,433,854 3,397,667 $ 5,831,521 Licenses and permits 32,087 - 174,826 32,087 Fines, forfeitures and penalties 1,012,911 - - 1,012,911 Use of money and property 50,564 63,893 5,053 119,510 Intergovernmental 7,391,677 - - 7,391,677 Charges for services 318,459 646 - 319,105 Other 74,803 1,543,013 9,884 1,627,700 Total revenues 11,314,355 5,005,219 14,937 16,334,511 Expenditures Current: General government 250,431 158,814 409,245 Public safety 1,101,234 - 1,101,234 Public works 5,491,370 - - 5,491,370 Community development 158,365 2,059,096 174,826 2,392,287 Recreation services 861,033 - - 861,033 Capital outlay 1,367,497 - 1,367,497 Debt service: Principal retirement - 3,003,000 3,003,000 Interest and fiscal charges - 2,047,772 83,309 2,131,081 Total expenditures 9,229,930 7,109,868 416,949 16,756,747 Excess (deficiency) of revenues over expenditures 2,084,425 (2,104,649) (402,012) (422,236) Other financing sources (uses) Transfers in 154,269 2,116,014 680,872 2,951,155 Transfers out (671,536) (577,982) (677,280) (1,926,798) Net other financing sources (uses) (517,267) 1,538,032 3,592 1,024,357 Net change in fund balances before extraordinary item 1,567,158 (566,617) (398,420) 602,121 Extraordinary item (8,343,589) (854,946) 18,690,678 9,492,143 Net change in fund balances (6,776,431) (1,421,563) 18,292,258 10,094,264 Beginning fund balances 22,590,957 2,929,221 (18,278,481) 7,241,697 Ending fund balances $ 15,814,526 1,507,658 13,777 $ 17,335,961 (This page intentionally left blank.) 75 Assets Pooled cash and investments Intergovernmental receivables Loans receivable Other receivables, net Prepaids Liabilities and fund balances Liabilities Accounts payable Deposits and others Due to other funds Deferred revenue Fund balances Nonspendable Loans receivable Prepaid items Restricted Special revenue funds Committed Unrestricted Unassigned Business Air Federal Park Improvement Quality Asset Maintenance Fees Improvement Forfeiture District $ 187,804 541,613 1,661,925 22,048 2,626 23,430 12,264 31,581 127 365 1,367 3,000 - - - Total assets $ 193,557 565,408 1,675,556 53,629 $ - 407 4,961 55,628 Total liabilities - 407 4,961 55,628 3,000 - - - 190,557 565,001 1,670, 595 - - - - (1,999) Total fund balances 193,557 565,001 1,670,595 (1,999) Total liabilities and fund balances $ 193,557 565,408 1,675,556 53,629 76 City of Baldwin Park Combining Balance Sheet Nonmajor Special Revenue Funds June 30, 2012 27,511 35,202 152,061 99,328 884 96,506 - - - - 246 - - - - - 44,685 - 27,511 35,202 152,061 99,328 45,815 96,506 44,685 - 3,504,217 - 459,949 2,820,250 - 575,343 - - - - 1,649,753 - - (14,833) - - - - 3,504,217 (14,833) 459,949 2,820,250 1,694,438 575,343 3,531,728 20,369 612,010 2,919,578 1,740,253 671,849 77 Economic State Bicycle and Development Street Light Gasoline Pedestrian Prop A Prop C Act Revolving and Tax Safety Fund Fund Loan Landscape 3,340,504 369 611,492 2,917,542 1,694, 393 577,749 189,379 20,000 74 - - 93,577 - - - - 44,685 - 1,845 - 444 2,036 1,175 523 3,531,728 2,919,578 20,369 612,010 1,740,253 671,849 27,511 35,202 152,061 99,328 884 96,506 - - - - 246 - - - - - 44,685 - 27,511 35,202 152,061 99,328 45,815 96,506 44,685 - 3,504,217 - 459,949 2,820,250 - 575,343 - - - - 1,649,753 - - (14,833) - - - - 3,504,217 (14,833) 459,949 2,820,250 1,694,438 575,343 3,531,728 20,369 612,010 2,919,578 1,740,253 671,849 77 Residential Integrated Summer Development Waste Food Tax Management Program Assets Pooled cash and investments $ 4 637,353 - Intergovernmental receivables - 90,110 79,475 Loans receivable - - - Other receivables, net - 456 - Prepaids - - - Total assets $ 4 727,919 79,475 Liabilities and fund balances Liabilities Accounts payable Deposits and others Due to other funds Deferred revenue Total liabilities Fund balances Nonspendable Loans receivable Prepaid items Restricted Special revenue funds Committed Unrestricted Unassigned Total fund balances $ - 50,610 78,346 - 401,720 - - 452,330 78,346 4 275,589 1,129 4 275,589 1,129 Total liabilities and fund balances $ 4 727,919 79,475 78 City of Baldwin Park Combining Balance Sheet (Continued) Nonmajor Special Revenue Funds June 30, 2012 Federal - 348,789 167,629 14,493 Surface State Local Law Transportation Prop A Assessment Asset Enforcement Program Parks District Forfeiture Block Grant 675,558 - 348,548 168,192 14,483 - 67,310 0 - - 468 - 241 1,450 10 676,026 67,310 348,789 169,642 14,493 - 706 - 2,013 - - 66,604 - - - - 67,310 - 2,013 - 676,026 - 348,789 167,629 14,493 - 348,789 676,026 167,629 14,493 676,026 67,310 348,789 169,642 14,493 79 Economic Development Traffic Administration Congestion Grant Relief Park Land and Public Storm Drain Art Fees NPDS Assets Pooled cash and investments $ 512 175,991 846,916 43,778 Intergovernmental receivables - - - - Loans receivable - - - - Other receivables, net - 853 686 1 Prepaids - - - - Total assets $ 512 176,844 847,602 43,779 Liabilities and fund balances Liabilities Accounts payable Deposits and others Due to other funds Deferred revenue Total liabilities Fund balances Nonspendable Loans receivable Prepaid items Restricted Special revenue funds Committed Unrestricted U d $ - 13,562 - 15,607 - 13,562 - 15,607 512 163,282 847,602 28,172 nassigne - - - - Total fund balances 512 163,282 847,602 28,172 Total liabilities and fund balances $ 512 176,844 847,602 43,779 L: City of Baldwin Park Combining Balance Sheet (Continued) Nonmajor Special Revenue Funds June 30, 2012 81 Low/ Moderate CalHome General Plan Income Grant Fees Measure R Housing Totals 7,396 417,498 1,447,004 - $ 16,338,672 - 266 - - 610,092 134,743 - - - 179,428 5 288 953 - 13,293 - - - - 3,000 142,144 418,052 1,447, 957 - 17,144, 485 - 11,133 37,495 - 681,960 - - - - 401,966 - - - - 66,604 134,743 - - - 179,428 134,743 11,133 37,495 - 1,329,958 134,743 - - - 179,428 - - - - 3,000 - 406,919 1,410,462 - 14,126,520 - - - - 1,649,753 (127,342) - - - (144,174) 7,401 406,919 1,410,462 - 15,814,527 142,144 418,052 1,447,957 - $ 17,144, 485 81 Revenues Taxes Licenses and permits Fines, forfeitures and penalties Use of money and property Intergovernmental Charges for services Other Total revenues Expenditures Current: General government Public safety Public works Community development Recreation services Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Transfers in Transfers out Net other financing sources (uses) Change in fund balances Extraordinary item RDA dissolution transactions Net change in fund balances Beginning fund balances Ending fund balances Business Air Federal Park Improvement Quality Asset Maintenance Fees Improvement Forfeiture District $ 89,204 - - 645,113 - - 1,012,428 - 418 1,230 4,879 - - 94,916 - - - - 72,505 - 89,622 96,146 1,089,812 645,113 15,000 - - - - - 1,093,376 - - - - 308,093 - 10,937 - - 49,740 - - 400,513 - - 141,281 11,964 64,740 10,937 1,234,657 720,570 24,882 85,209 (144,845) (75,457) - - - 73,458 - - - 73,458 24,882 85,209 (144,845) (1,999) 24,882 85,209 (144,845) (1,999) 168,675 479,792 1,815,440 - $ 193,557 565,001 1,670,595 (1,999) 82 City of Baldwin Park Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Special Revenue Funds Year ended June 30, 2012 83 Economic State Bicycle and Development Street Light Gasoline Pedestrian Prop A Prop C Act Revolving and Tax Safety Fund Fund Loan Landscape - - - - - 1,699,537 - - 32,087 - - - - - - - 483 - 6,100 - 1,248 6,931 2,818 1,245 2,267,453 20,000 1,466,612 988,117 - - - - - - 1,126 - 2,273,553 20,000 1,499,947 995,048 4,427 1,700,782 10,002 - 51,885 50,941 - 53,330 941,478 35,202 994,245 580,380 - 1,741,715 - - - - 18,034 - 6,418 - 107,583 16,454 - 43,243 5,588 - - 96,690 - 16,414 963,486 35,202 1,153,713 744,465 18,034 1,854,702 1,310,067 (15,202) 346,234 250,583 (13,607) (153,920) - - - 2,479 - - (518,080) - - - - - (518,080) - - 2,479 - - 791,987 (15,202) 346,234 253,062 (13,607) (153,920) 346,234 (15,202) 253,062 (13,607) (153,920) 791,987 2,712,230 369 113,715 2,567,188 1,708,045 729,263 3,504,217 (14,833) 459,949 2,820,250 1,694,438 575,343 83 Revenues Taxes Licenses and permits Fines, forfeitures and penalties Use of money and property Intergovernmental Charges for services Other Expenditures Current: General government Public safety Public works Community development Recreation services Capital outlay Total revenues Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Transfers in Transfers out Net other financing sources (uses) Change in fund balances Extraordinary item RDA dissolution transactions Net change in fund balances Beginning fund balances Ending fund balances Mal Residential Integrated Summer Development Waste Food Tax Management Program - 1,401 - - 322,516 209,504 - 11,675 - - 335,592 209,504 - 8,097 - - 298,331 - - - 235,942 - 306,428 235,942 - 29,164 (26,438) - - 27,567 _ - 27,567 29,164 1,129 - 29,164 1,129 4 246,425 - $ 4 275,589 1,129 City of Baldwin Park Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) Nonmajor Special Revenue Funds Year ended June 30, 2012 Federal Surface State Local Law Transportation Prop A Assessment Asset Enforcement Program Parks District Forfeiture Block Grant 1,562 - 838 418 35 - 67,310 10,461 1,397 - 1,562 67,310 11,299 1,815 35 - - - 7,858 - - 67,310 - - - 67,310 - 7,858 - 1,562 - 11,299 (6,043) 35 1,562 - 11,299 (6,043) 35 85 1,562 - 11,299 (6,043) 35 674,463 - 337,490 173,672 14,458 676,025 - 348,789 167,629 14,493 85 Revenues Taxes Licenses and permits Fines, forfeitures and penalties Use of money and property Intergovernmental Charges for services Other Expenditures Current: General government Public safety Public works Community development Recreation services Capital outlay Total revenues Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Transfers in Transfers out Net other financing sources (uses) Change in fund balances Extraordinary item RDA dissolution transactions Net change in fund balances Beginning fund balances Ending fund balances Economic Development Traffic Administration Congestion Grant Relief Park Land and Public Storm Drain Art Fees NPDS - 1,975 2,182 44 - 1,206,345 - - - 1,120 149,329 76,091 - 1,209,440 151,511 76,135 - 1,095,560 - 1,095,560 - 126,901 126,901 - 113,880 151,511 (50,766) - - - 50,765 - - (153,456) - - (153,456) 50,765 113,880 (1,945) (1) - 113,880 (1,945) (1) 512 49,402 849,547 28,173 $ 512 163,282 847,602 28,172 L:. City of Baldwin Park Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) Nonmajor Special Revenue Funds Year ended June 30, 2012 87 Low/ Moderate CalHome General Plan Income Grant Fees Measure R Housing Totals - - - - $ 2,433,854 - - - - 32,087 - - - - 1,012,911 18 963 3,080 13,179 50,564 - - 737,046 - 7,391,677 - 80,244 - - 318,459 915 - - 257 74,803 933 81,207 740,126 13,436 11,314,355 - - 33,929 27,247 250,431 - - - - 1,101,234 - - 397,715 - 5,491,370 - 38,888 - 90,506 158,365 - - 1,140 - 861,033 - - - - 1,367,497 - 38,888 432,784 117,753 9,229,930 933 42,319 307,342 (104,317) 2,084,425 - - - - 154,269 - - - - (671,536) - - - - (517,267) 933 42,319 307,342 (104,317) 1,567,158 - - - (8,343,589) (8,343,589) 933 42,319 307,342 (8,447,906) (6,776,431) 6,468 364,600 1,103,120 8,447,906 22,590,957 7,401 406,919 1,410,462 - $ 15,814,526 87 City of Baldwin Park Combining Balance Sheet Nonmajor Debt Service Funds June 30, 2012 Liabilities and fund balances Liabilities Due to other funds $ 213,497 Baldwin Park Total liabilities 213,497 Pension Financing Redevelopment Obligation City Authority Agency Totals Assets 820 32,295 1,474,543 1,507,658 Total fund balances Pooled cash and investments $ 584 32,272 - $ 32,856 Cash with fiscal agent 236 - 1,688,019 1,688,255 Other receivables, net - 23 21 44 Total assets $ 820 32,295 1,688,040 $ 1,721,155 Liabilities and fund balances Liabilities Due to other funds $ 213,497 $ 213,497 Total liabilities 213,497 213,497 Fund balances Restricted Debt service funds 820 32,295 1,474,543 1,507,658 Total fund balances 820 32,295 1,474,543 1,507,658 Total liabilities and fund balances $ 820 32,295 1,688,040 $ 1,721,155 -I City of Baldwin Park Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Debt Service Funds Year ended June 30, 2012 Other financing sources (uses) Transfers in Transfers out Net other financing sources (uses) Change in fund balances Extraordinary item RDA dissolution transactions Net change in fund balances Beginning fund balances Ending fund balances $ 501,380 1,079,086 535,548 Baldwin Park - (38,842) (539,140) Pension _ 501,380 Financing Redevelopment 1,538,032 126 (28,105) Obligation City Authority Agency Totals Revenues (854,946) 126 (28,105) (2,224) (1,391,360) (1,421,563) Taxes $ - - - 3,397,667 $ 3,397,667 Use of money and property 126 89 38,918 24,760 63,893 Charges for services - 646 - - 646 Other 1,541,846 - 1,167 1,543,013 Total revenues 1,541,972 735 38,918 3,423,594 5,005,219 Expenditures Current: Community development - - - 2,059,096 2,059,096 Debt Service: Principal retirement 1,025,000 304,000 539,000 1,135,000 3,003,000 Interest and fiscal charges 516,846 226,220 542,386 762,320 2,047,772 Total expenditures 1,541,846 530,220 1,081,386 3,956,416 7,109,868 Excess (deficiency) of revenues over expenditures 126 (529,485) (1,042,468) (532,822) (2,104,649) Other financing sources (uses) Transfers in Transfers out Net other financing sources (uses) Change in fund balances Extraordinary item RDA dissolution transactions Net change in fund balances Beginning fund balances Ending fund balances $ 501,380 1,079,086 535,548 2,116,014 - (38,842) (539,140) (577,982) _ 501,380 1,040,244 (3,592) 1,538,032 126 (28,105) (2,224) (536,414) (566,617) - (854,946) (854,946) 126 (28,105) (2,224) (1,391,360) (1,421,563) 694 60,400 1,476,767 1,391,360 2,929,221 820 32,295 1,474,543 $ 1,507,658 i� Revenues Taxes Licenses and permits Fines, forfeitures and penalties Use of money and property Intergovernmental Charges for services Other Expenditures Current: General government Public safety Public works Community development Recreation services Capital outlay Debt service Total expenditures 45,500 Business Improvement Fees 15,000 30,500 62,000 62,000 Variance with 12,260 Final Budget - Budgeted Amounts 107,500 Positive Original Final Actual (Negative) $ 69,900 69,900 89,204 19,304 900 900 418 (482) Total revenues 70,800 70,800 89,622 18,822 Total expenditures 45,500 45,500 15,000 30,500 62,000 62,000 49,740 12,260 107,500 107,500 64,740 42,760 Excess (deficiency) of revenues over expenditures (36,700) (36,700) 24,882 61,582 Other financing sources (uses) Capital leases Transfers in Transfers out Net other financing sources (uses) Net change in fund balances Beginning fund balances Ending fund balances (36,700) (36,700) 24,882 61,582 168,675 168,675 168,675 - $ 131,975 131,975 193,557 61,582 X18 City of Baldwin Park Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Special Revenue Funds Year ended June 30, 2012 Air Quality Improvement 98,600 98,600 96,146 (2,454) 3,000 3,000 - 3,000 21,900 21,900 10,937 10,963 24,900 24,900 10,937 13,963 73,700 73,700 85,209 11,509 73,700 73,700 85,209 11,509 479,792 479,792 479,792 - 553,492 553,492 565,001 11,509 91 Variance with Final Budget - Budgeted Amounts Positive Original Final Actual (Negative) 1,700 1,700 1,230 (470) 96,900 96,900 94,916 (1,984) 98,600 98,600 96,146 (2,454) 3,000 3,000 - 3,000 21,900 21,900 10,937 10,963 24,900 24,900 10,937 13,963 73,700 73,700 85,209 11,509 73,700 73,700 85,209 11,509 479,792 479,792 479,792 - 553,492 553,492 565,001 11,509 91 Expenditures Current: General government - - - - Public safety 607,000 882,000 1,093,376 (211,376) Public works - - - - Community development - - - - Recreation services - - - - Capital outlay 100,000 100,000 141,281 (41,281) Debt service - - - - Total expenditures 707,000 982,000 1,234,657 (252,657) Excess (deficiency) of revenues over expenditures (597,000) (597,000) (144,845) 452,155 Other financing sources (uses) Capital leases Transfers in Transfers out Net other financing sources (uses) Net change in fund balances Beginning fund balances Ending fund balances 92 (597,000) (597,000) (144,845) 452,155 1,815,440 1,815,440 1,815,440 - $ 1,218,440 1,218,440 1,670,595 452,155 Federal Asset Forfeiture Variance with Final Budget - Budgeted Amounts Positive Revenues Original Final Actual (Negative) Taxes - Licenses and permits - - - - Fines, forfeitures and penalties 100,000 300,000 1,012,428 712,428 Use of money and property 10,000 10,000 4,879 (5,121) Intergovernmental - 75,000 - (75,000) Charges for services - - - - Other - - 72,505 72,505 Total revenues 110,000 385,000 1,089,812 704,812 Expenditures Current: General government - - - - Public safety 607,000 882,000 1,093,376 (211,376) Public works - - - - Community development - - - - Recreation services - - - - Capital outlay 100,000 100,000 141,281 (41,281) Debt service - - - - Total expenditures 707,000 982,000 1,234,657 (252,657) Excess (deficiency) of revenues over expenditures (597,000) (597,000) (144,845) 452,155 Other financing sources (uses) Capital leases Transfers in Transfers out Net other financing sources (uses) Net change in fund balances Beginning fund balances Ending fund balances 92 (597,000) (597,000) (144,845) 452,155 1,815,440 1,815,440 1,815,440 - $ 1,218,440 1,218,440 1,670,595 452,155 City of Baldwin Park Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Continued) Nonmajor Special Revenue Funds Year ended June 30, 2012 Park Maintenance District State Gasoline Tax Variance with Variance with Final Budget- Final Budget - Budgeted Amounts Positive Budgeted Amounts Positive Original Final Actual (Negative) Original Final Actual (Negative) 630,000 630,000 645,113 15,113 - - - - - - - - 6,600 6,600 6,104 (496) - - - - 1,268,220 2,468,220 2,267,454 (200,766) 291,260 291,260 308,093 (16,833) 630,000 630,000 645,113 15,113 1,274,820 2,474,820 2,273,558 (201,262) - - - - 12,590 7,590 10,002 (2,412) 291,260 291,260 308,093 (16,833) 775,700 1,975,700 941,478 1,034,222 546,500 546,500 400,513 145,987 2,690 7,690 6,418 1,272 9,500 9,500 11,964 (2,464) - - 5,588 (5,588) 847,260 847,260 720,570 126,690 790,980 1,990,980 963,486 1,027,494 (217,260) (217,260) (75,457) 141,803 483,840 483,840 1,310,072 826,232 217,260 217,260 73,458 (143,802) - - - - - - - - (403,800) (403,800) (518,080) (114,280) 217,260 217,260 73,458 (143,802) (403,800) (403,800) (518,080) (114,280) - - (1,999) (1,999) 80,040 80,040 791,992 711,952 - - - - 2,712,230 2,712,230 2,712,230 - - - (1,999) (1,999) 2,792,270 2,792,270 3,504,222 711,952 93 Revenues Taxes Licenses and permits Fines, forfeitures and penalties Use of money and property Intergovernmental Charges for services Other Expenditures Current: General government Public safety Public works Community development Recreation services Capital outlay Debt service Bicycle and Pedestrian Safety Variance with Final Budget - Budgeted Amounts Positive Original Final Actual (Negative) - - 20,000 20,000 Total revenues - - 20,000 20,000 Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Capital leases Transfers in Transfers out Net other financing sources (uses) Net change in fund balances Beginning fund balances Ending fund balances MA - - 35,202 (35,202) - - 35,202 (35,202) - - (15,202) (15,202) - - (15,202) (15,202) 369 369 369 - $ 369 369 (14,833) (15,202) City of Baldwin Park Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Continued) Nonmajor Special Revenue Funds Year ended June 30, 2012 51,050 Prop A Fund (835) 51,730 Prop C Fund 790 1,055,720 1,055,720 994,245 Variance with 526,180 526,180 580,380 Variance with 80,580 80,580 107,583 Final Budget- 17,950 17,950 16,454 Final Budget - Budgeted Amounts - Positive Budgeted Amounts 96,690 Positive Original Final Actual (Negative) Original Final Actual (Negative) 44,000 44,000 32,087 (11,913) - - - - 1,080 1,080 1,248 168 11,390 11,390 6,931 (4,459) 1,191,700 1,191,700 1,466,612 274,912 931,660 3,312,480 988,117 (2,324,362) 1,236,780 1,236,780 1,499,947 263,167 943,050 3,323,870 995,048 (2,328,821) 51,050 51,050 51,885 (835) 51,730 51,730 50,941 790 1,055,720 1,055,720 994,245 61,475 526,180 526,180 580,380 (54,199) 80,580 80,580 107,583 (27,003) 17,950 17,950 16,454 1,496 - - - - 300,000 2,680,820 96,690 2,584,130 895,860 3,276,680 744,465 2,532,217 1,187,350 1,187,350 1,153,713 33,637 49,430 49,430 346,234 296,804 47,190 47,190 250,583 203,396 - - - - - - 2,479 2,479 - - - - - - 2,479 2,479 49,430 49,430 346,234 296,804 47,190 47,190 253,062 205,875 113,715 113,715 113,715 - 2,567,188 2,567,188 2,567,188 - 163,145 163,145 459,949 296,804 2,614,378 2,614,378 2,820,250 205,875 95 Revenues Taxes Licenses and permits Fines, forfeitures and penalties Use of money and property Intergovernmental Charges for services Other Expenditures Current: General government Public safety Public works Community development Recreation services Capital outlay Debt service Economic Development Act Revolving Loan Variance with Final Budget. Budgeted Amounts Positive Original Final Actual (Negative) 1,500 1,500 483 (1,017) 6,500 6,500 2,818 (3,682) 19,000 19,000 1,126 (17,874) Total revenues 27,000 27,000 4,427 (22,573) 171,380 171,380 18,034 153,346 Total expenditures 171,380 171,380 18,034 153,346 Excess (deficiency) of revenues over expenditures (144,380) (144,380) (13,607) 130,773 Other financing sources (uses) Capital leases Transfers in Transfers out Net other financing sources (uses) Net change in fund balances Beginning fund balances Ending fund balances (144,380) (144,380) (13,607) 130,773 1,708,045 1,708,045 1,708,045 - $ 1,563,665 1,563,665 1,694,438 130,773 M. City of Baldwin Park Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual (Continued) Nonmajor Special Revenue Funds Year ended June 30, 2012 47,830 Street Light and Landscape 53,330 Residential Development Tax 1,627,750 1,627,750 1,741,715 Variance with Variance with 43,100 43,243 (143) - - - - Final Budget- Final Budget - Budgeted Amounts (16,414) - - - - Positive Budgeted Amounts Positive Original Final Actual (Negative) Original Final Actual (Negative) 1,733,810 1,733,810 1,699,537 (34,273) - - - - 720 720 1,245 525 - - - - 1,734,530 1,734,530 1,700,782 (33,748) - - - - 47,830 47,830 53,330 (5,500) - - - - 1,627,750 1,627,750 1,741,715 (113,965) - - - - 43,100 43,100 43,243 (143) - - - - - - 16,414 (16,414) - - - - 1,718,680 1,718,680 1,854,702 (136,022) - - - - 15,850 15,850 (153,920) (169,771) - - - - 15,850 15,850 (153,920) (169,771) - - - - 729,263 729,263 729,263 - 4 4 4 - 745,113 745,113 575,343 (169, 771) 4 4 4 - 97 Expenditures Current: General government 7,590 7,590 8,097 (507) Public safety - - - - Public works 309,090 309,090 298,331 10,759 Community development - - - - Recreation services - - - - Capital outlay - - - - Debt service - - - - Total expenditures 316,680 316,680 306,428 10,252 Excess (deficiency) of revenues over expenditures 34,160 34,160 29,164 (4,996) Other financing sources (uses) Capital leases Transfers in Transfers out Net other financing sources (uses) Net change in fund balances Beginning fund balances Ending fund balances 34,160 34,160 29,164 (4,996) 246,425 246,425 246,425 - $ 280,585 280,585 275,589 (4,996) Integrated Waste Management Variance with Final Budget - Budgeted Amounts Positive Revenues Original Final Actual (Negative) Taxes - Licenses and permits - - - - Fines, forfeitures and penalties - - - - Use of money and property 2,240 2,240 1,401 (839) Intergovernmental 341,000 341,000 322,516 (18,484) Charges for services 7,600 7,600 11,675 4,075 Other - - - - Total revenues 350,840 350,840 335,592 (15,247) Expenditures Current: General government 7,590 7,590 8,097 (507) Public safety - - - - Public works 309,090 309,090 298,331 10,759 Community development - - - - Recreation services - - - - Capital outlay - - - - Debt service - - - - Total expenditures 316,680 316,680 306,428 10,252 Excess (deficiency) of revenues over expenditures 34,160 34,160 29,164 (4,996) Other financing sources (uses) Capital leases Transfers in Transfers out Net other financing sources (uses) Net change in fund balances Beginning fund balances Ending fund balances 34,160 34,160 29,164 (4,996) 246,425 246,425 246,425 - $ 280,585 280,585 275,589 (4,996) City of Baldwin Park Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Continued) Nonmajor Special Revenue Funds Year ended June 30, 2012 Summer Food Program 180,000 Federal Surface Transportation Program (55,942) Variance with - Variance with Final Budget- Final Budget - Budgeted Amounts Positive Budgeted Amounts Positive Original Final Actual (Negative) Original Final Actual (Negative) - - - - 1,900 1,900 1,562 (338) 140,000 140,000 209,504 69,504 600,000 600,000 - (600,000) 140,000 140,000 209,504 69,504 601,900 601,900 1,562 (600,338) 180,000 180,000 235,942 (55,942) - - - - - - - - 180,000 180,000 235,942 (55,942) (40,000) (40,000) (26,438) 13,562 601,900 601,900 1,562 (600,338) 40,000 40,000 27,567 (12,433) - - - - (12,433) 40,000 40,000 27,567 - - - - - - 1,129 1,129 601,900 601,900 1,562 (600,338) - - - - 674,463 674,463 674,463 - - - 1,129 1,129 1,276,363 1,276,363 676,025 (600,338) .. Expenditures Current: General government - - - - Public safety - - - - Public works 58,520 58,520 67,310 (8,790) Community development - - - Recreation services - - - - Capital outlay - - - - Debt service - - - - Total expenditures 58,520 58,520 67,310 (8,790) Excess (deficiency) of revenues over expenditures 4,540 4,540 - (4,540) Other financing sources (uses) Capital leases - - - - Transfers in - - - - Transfers out - - - - Net other financing sources (uses) - - - - Net change in fund balances 4,540 4,540 - (4,540) Beginning fund balances Ending fund balances 100 $ 4,540 4,540 - (4,540) Prop A Parks Variance with Final Budget - Budgeted Amounts Positive Revenues Original Final Actual (Negative) Taxes - Licenses and permits - - - - Fines, forfeitures and penalties - - - - Use of money and property 60 60 - (60) Intergovernmental 63,000 63,000 67,310 4,310 Charges for services - - - - Other - - - - Total revenues 63,060 63,060 67,310 4,250 Expenditures Current: General government - - - - Public safety - - - - Public works 58,520 58,520 67,310 (8,790) Community development - - - Recreation services - - - - Capital outlay - - - - Debt service - - - - Total expenditures 58,520 58,520 67,310 (8,790) Excess (deficiency) of revenues over expenditures 4,540 4,540 - (4,540) Other financing sources (uses) Capital leases - - - - Transfers in - - - - Transfers out - - - - Net other financing sources (uses) - - - - Net change in fund balances 4,540 4,540 - (4,540) Beginning fund balances Ending fund balances 100 $ 4,540 4,540 - (4,540) City of Baldwin Park Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Continued) Nonmajor Special Revenue Funds Year ended June 30, 2012 Assessment District State Asset Forfeiture - - - - 15,000 15,000 7,858 7,142 - - - - 15,000 15,000 7,858 7,142 12,980 12,980 11,299 (1,681) (10,300) (10,300) (6,043) 4,257 12,980 12,980 11,299 (1,681) (10,300) (10,300) (6,043) 4,257 337,490 337,490 337,490 - 173,672 173,672 173,672 - 350,470 350,470 348,789 (1,681) 163,372 163,372 167,629 4,257 101 Variance with V Variance with Final Budget- F Final Budget - Budgeted Amounts P Positive B Budgeted Amounts P Positive Original F Final A Actual ( (Negative) O Original F Final A Actual ( (Negative) 1,350 1 1,350 8 838 ( (512) 8 800 8 800 4 418 ( (382) 11,630 1 11,630 1 10,461 ( (1,169) 3 3,900 3 3,900 1 1,397 ( (2,503) 12,980 1 12,980 1 11,299 ( (1,681) 4 4,700 4 4,700 1 1,815 ( (2,885) 15,000 15,000 7,858 7,142 - - - - 15,000 15,000 7,858 7,142 12,980 12,980 11,299 (1,681) (10,300) (10,300) (6,043) 4,257 12,980 12,980 11,299 (1,681) (10,300) (10,300) (6,043) 4,257 337,490 337,490 337,490 - 173,672 173,672 173,672 - 350,470 350,470 348,789 (1,681) 163,372 163,372 167,629 4,257 101 101 Revenues Taxes Licenses and permits Fines, forfeitures and penalties Use of money and property Intergovernmental Charges for services Other Expenditures Current: General government Public safety Public works Community development Recreation services Capital outlay Debt service Local Law Enforcement Block Grant Budgeted Amounts Original Final 200 200 Total revenues 200 200 Variance with Final Budget - Positive Actual (Negative) 35 (165) 35 (165) 5,400 5,400 - 5,400 Total expenditures 5,400 5,400 - 5,400 Excess (deficiency) of revenues over expenditures (5,200) (5,200) 35 5,235 Other financing sources (uses) Capital leases - - - - Transfers in - - - - Transfers out - - - Net other financing sources (uses) - - - - Net change in fund balances (5,200) (5,200) 35 5,235 Beginning fund balances Ending fund balances 102 14,458 14,458 14,458 - $ 9,258 9,258 14,493 5,235 City of Baldwin Park Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual (Continued) Nonmajor Special Revenue Funds Year ended June 30, 2012 Economic Development Administration Grant Traffic Congestion Relief Variance with Variance with Final Budget- Final Budget - Budgeted Amounts Positive Budgeted Amounts Positive Original Final Actual (Negative) Original Final Actual (Negative) - - - - 4,650 4,650 1,975 (2,675) - - - - 1,150,000 1,150,000 1,206,345 56,345 - - - - 1,000 1,000 1,120 120 - - - - 1,155,650 1,155,650 1,209,440 53,790 - - - - 1,150, 000 1,150, 000 - 1,150, 000 - - - - - - 1,095,560 (1,095,560) - - - 1,150,000 1,150,000 1,095,560 54,440 - - - - 5,650 5,650 113,880 108,230 - - - 5,650 5,650 113,880 108,230 512 512 512 - 49,402 49,402 49,402 - 512 512 512 - 55,052 55,052 163,282 108,230 103 Revenues Taxes Licenses and permits Fines, forfeitures and penalties Use of money and property Intergovernmental Charges for services Other Expenditures Current: General government Public safety Public works Community development Recreation services Capital outlay Debt service Total revenues Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Capital leases Transfers in Transfers out Net other financing sources (uses) Net change in fund balances Beginning fund balances Ending fund balances 104 Energy Conservation Variance with Final Budget - Budgeted Amounts Positive Original Final Actual (Negative) City of Baldwin Park Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual (Continued) Nonmajor Special Revenue Funds Year ended June 30, 2012 Park Land and Public Fees 20,000 20,000 - 20,000 20,000 20,000 - 20,000 43,400 43,400 151,511 108,111 - - (153,456) (153,456) - - (153,456) (153,456) 43,400 43,400 (1,945) (45,345) 849,547 849,547 849,547 - 892,947 892,947 847,602 (45,345) 105 Variance with Final Budget - Budgeted Amounts Positive Original Final Actual (Negative) 3,400 3,400 2,182 (1,218) 60,000 60,000 149,329 89,329 63,400 63,400 151,511 88,111 20,000 20,000 - 20,000 20,000 20,000 - 20,000 43,400 43,400 151,511 108,111 - - (153,456) (153,456) - - (153,456) (153,456) 43,400 43,400 (1,945) (45,345) 849,547 849,547 849,547 - 892,947 892,947 847,602 (45,345) 105 Expenditures Current: General government - - - - Public safety - - - Public works 71,860 71,860 126,901 (55,041) Community development - - - - Recreation services - - - - Capital outlay - - - - Debt service - - - - Total expenditures 71,860 71,860 126,901 (55,041) Excess (deficiency) of revenues over expenditures (21,350) (21,350) (50,766) (29,416) Other financing sources (uses) Discontinued operation gain (loss) - - - - Transfers in - - 50,765 50,765 Transfers out - - - - Net other financing sources (uses) - - 50,765 50,765 Change in fund balances, before extraordinary item (21,350) (21,350) (1) 21,349 Extraordinary item RDA dissolution transactions - - - - Net change in fund balances (21,350) (21,350) (1) 21,349 Beginning fund balances 28,173 28,173 28,173 - Ending fund balances $ 6,823 6,823 28,172 21,349 M. Storm Drain NPDS Variance with Final Budget - Budgeted Amounts Positive Revenues Original Final Actual (Negative) Taxes - Licenses and permits - - - - Fines, forfeitures and penalties - - - - Use of money and property 510 510 44 (466) Intergovernmental - - - - Charges for services 50,000 50,000 76,091 26,091 Other - - - - Total revenues 50,510 50,510 76,135 25,625 Expenditures Current: General government - - - - Public safety - - - Public works 71,860 71,860 126,901 (55,041) Community development - - - - Recreation services - - - - Capital outlay - - - - Debt service - - - - Total expenditures 71,860 71,860 126,901 (55,041) Excess (deficiency) of revenues over expenditures (21,350) (21,350) (50,766) (29,416) Other financing sources (uses) Discontinued operation gain (loss) - - - - Transfers in - - 50,765 50,765 Transfers out - - - - Net other financing sources (uses) - - 50,765 50,765 Change in fund balances, before extraordinary item (21,350) (21,350) (1) 21,349 Extraordinary item RDA dissolution transactions - - - - Net change in fund balances (21,350) (21,350) (1) 21,349 Beginning fund balances 28,173 28,173 28,173 - Ending fund balances $ 6,823 6,823 28,172 21,349 M. City of Baldwin Park Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Continued) Nonmajor Special Revenue Funds Year ended June 30, 2012 CalHome Grant Budgeted Amounts Original Final 30 30 300 300 330 330 General Plan Fees Variance with 53,000 38,888 14,112 Variance with Final Budget- 38,888 14,112 - - - - 53,000 Final Budget - Positive Budgeted Amounts 42,319 Positive Actual (Negative) Original Final Actual (Negative) 18 (12) 1,500 1,500 963 (537) - - 70,000 70,000 80,244 10,244 915 615 - - - - 933 603 71,500 71,500 81,207 9,707 - - - - 53,000 53,000 38,888 14,112 53,000 38,888 14,112 - - - - 53,000 603 18,500 - 364,600 330 330 933 603 18,500 18,500 42,319 23,819 7,401 603 383,100 18,500 42,319 23,819 330 330 933 603 18,500 107 330 6,468 330 6,468 933 6,468 603 18,500 - 364,600 18,500 364,600 42,319 23,819 364,600 - 6,798 6,798 7,401 603 383,100 383,100 406,919 23,819 107 Expenditures Current: General government 40,250 40,250 33,929 6,321 Public safety - - - - Public works 619,810 1,045,238 397,715 647,523 Community development - - - - Recreation services - - 1,140 (1,140) Capital outlay - - - - Debt service - - - - Total expenditures 660,060 Measure R 432,784 652,704 Excess (deficiency) of revenues over expenditures 40,700 Variance with 307,342 266,642 Other financing sources (uses) Final Budget - Budgeted Amounts Positive Revenues Original Final Actual (Negative) Taxes - - - Licenses and permits - - - - Fines, forfeitures and penalties - - - - Use of money and property 2,000 2,000 3,080 1,080 Intergovernmental 698,760 1,124,188 737,046 (387,142) Charges for services - - - - Other - - - - 307,342 Total revenues 700,760 1,126,188 740,126 (386,062) Expenditures Current: General government 40,250 40,250 33,929 6,321 Public safety - - - - Public works 619,810 1,045,238 397,715 647,523 Community development - - - - Recreation services - - 1,140 (1,140) Capital outlay - - - - Debt service - - - - Total expenditures 660,060 1,085,488 432,784 652,704 Excess (deficiency) of revenues over expenditures 40,700 40,700 307,342 266,642 Other financing sources (uses) Transfers in - - - - Transfers out - - - Net other financing sources (uses) - - - - Change in fund balances, before extraordinary item 40,700 40,700 307,342 266,642 Extraordinary item RDA dissolution transactions - - - - Net change in fund balances 40,700 40,700 307,342 266,642 Beginning fund balances 1,103,120 1,103,120 1,103,120 - Ending fund balances $ 1,143,820 1,143,820 1,410,462 266,642 108 City of Baldwin Park Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual (Continued) Nonmajor Special Revenue Funds Year ended June 30, 2012 Low /Moderate Income Housing 336,020 336,020 27,247 308,773 - - 90,506 Variance with 336,020 336,020 117,753 218,267 Final Budget - Budgeted Amounts Positive Original Final Actual (Negative) 1,243,180 1,243,180 - (1,243,180) 39,200 39,200 13,179 (26,021) 2,000 2,000 257 (1,743) 1,284,380 1,284,380 13,436 (1,270,944) 336,020 336,020 27,247 308,773 - - 90,506 (90,506) 336,020 336,020 117,753 218,267 948,360 948,360 (104,317) (1,052,677) 948,360 948,360 (104,317) (1,052,677) - - (8,343,589) (8,343,589) 948,360 948,360 (8,447,906) (9,396,266) 8,447,906 8,447,906 8,447,906 - 9,396,266 9,396,266 - (9,396,266) 109 110 Debt Service Baldwin Park Financing Authority Variance with Budgeted Amounts Final Budget Positive Original Final Actual (Negative) Revenues Taxes $ - - - Use of money and property 50 50 38,918 38,868 Other - - - - Total revenues 50 50 38,918 38,868 Expenditures Current: Community development - - - - Debt service: Principal retirement 539,000 539,000 539,000 - Interest and fiscal charges 545,030 545,030 542,386 2,644 Cost of issuance and other costs - - - - Total expenditures 1,084,030 1,084,030 1,081,386 2,644 Excess (deficiency) of revenues over expenditures (1,083,980) (1,083,980) (1,042,468) 41,512 Other financing sources (uses) Transfers in 1,084,030 1,084,030 1,079,086 (4,944) Transfers out - - (38,842) (38,842) Net other financing sources (uses) 1,084,030 1,084,030 1,040,244 (43,786) Change in fund balances 50 50 (2,224) (2,274) Extraordinaryitem RDA dissolution transactions - - 50 50 (2,224) (2,274) Beginning fund balances 1,476,767 1,476,767 1,476,767 Ending fund balances $ 1,476,817 1,476,817 1,474,543 (2,274) 110 City of Baldwin Park Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual Debt Service Funds Year ended June 30, 2012 Debt Service Redevelopment Agency Variance with Budgeted Amounts Final Budget Positive Original Final Actual (Negative) 4,301,900 4,301,900 9,710 9,710 4,311,610 4,311,610 3,278,500 3,278,500 3,397,667 (904,233) 24,760 15,050 1,167 1,167 3,423,594 (888,016) 2,059,096 1,219,404 1,135,000 1,135,000 1,135,000 - 1,406,010 1,406,010 762,320 643,690 5,819,510 5,819,510 3,956,416 1,863,094 (1,507,900) (1,507,900) (532,822) 975,078 535,540 535,540 535,548 8 (535,540) (535,540) (539,140) (3,600) (3,592) (3,592) (1,507,900) (1,507,900) (536,414) 971,486 (1,507,900) (1,507,900) 1,391,360 1,391,360 (116,540) (116,540) (854,946) (854,946) (1,391,360) 116,540 1,391,360 - - 116,540 111 Beginning fund balances 694 694 694 - Ending fund balances $ 694 694 820 127 112 Debt Service Pension Obligation Variance with Budgeted Amounts Final Budget Positive Original Final Actual (Negative) Revenues Use of money and property $ 2,520 2,520 126 (2,394) Charges for services - - - - Other 1,537,560 1,537,560 1,541,846 4,286 Total revenues 1,540,080 1,540,080 1,541,972 1,892 Expenditures Debt service: Principal retirement 1,025,000 1,025,000 1,025,000 - Interest and fiscal charges 515,080 515,080 516,846 (1,767) Total expenditures 1,540,080 1,540,080 1,541,846 (1,767) Excess (deficiency) of revenues over expenditure - 126 127 Other financing sources (uses) Transfers in - - Net other financing sources (uses) - - Net change in fund balances 126 127 Beginning fund balances 694 694 694 - Ending fund balances $ 694 694 820 127 112 City of Baldwin Park Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual Debt Service Funds Year ended June 30, 2012 Debt Service 309,420 309,420 304,000 5,420 226,220 226,220 226,220 - 535,640 535,640 530,220 5,420 (501,380) (501,380) (529,485) (28,105) 501,380 501,380 501,380 501,380 501,380 501,380 - - (28,105) (28,105) 60,400 60,400 60,400 60,400 60,400 32,295 (28,105) 113 City Variance with Budgeted Amounts Final Budget Positive Original Final Actual (Negative) 210 210 89 (121) 34,050 34,050 646 (33,404) 34,260 34,260 735 (33,525) 309,420 309,420 304,000 5,420 226,220 226,220 226,220 - 535,640 535,640 530,220 5,420 (501,380) (501,380) (529,485) (28,105) 501,380 501,380 501,380 501,380 501,380 501,380 - - (28,105) (28,105) 60,400 60,400 60,400 60,400 60,400 32,295 (28,105) 113 Revenues Use of money and property Other Expenditures Current: General government Community development Debt service: Interest and fiscal charges Capital Project Building Reserve Variance with Budgeted Amounts Final Budget Positive Original Final Actual (Negative) $ 1,365 1,365 Total revenues 1,365 1,365 Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Loan proceeds Transfers in Transfers out Net other financing sources (uses) Net change in fund balances before transfers Transfer of balances to fiduciary funds Net change in fund balances Beginning fund balances Ending fund balances 1,365 1,365 680,230 680,230 677,280 (2,950) (680,230) (680,230) (677,280) 2,950 1,365 1,365 - - 1,365 1,365 12,412 12,412 12,412 - $ 12,412 12,412 13,777 1,365 114 City of Baldwin Park Schedule of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual Capital Projects Fund Year ended June 30, 2012 Capital Project Redevelopment Aaenc 294,330 Variance with Budgeted Amounts Final Budget 314,410 Positive Original Final Actual (Negative) 3,688 3,688 9,884 9,884 13,572 13,572 294,330 294,330 158,814 135,516 314,410 314,410 174,826 139,584 55,850 55,850 83,309 (27,459) 664,590 664,590 416,949 247,641 (664,590) (664,590) (403,377) 261,213 111,610 111,610 - (111,610) 390,460 390,460 3,592 (386,868) 502,070 502,070 3,592 (498,478) (162,520) (162,520) (399,785) (237,265) 18, 690, 678 18, 690, 678 (162,520) (162,520) 18,290,893 18,453,413 (18,290,893) (18,290,893) (18,290,893) - (18,453,413) (18,453,413) 18,453,413 115 (This page intentionally left blank.) City of Baldwin Park Description of Internal Service Funds June 30, 2012 Internal Service Funds are used to account for services provided to City departments and agencies on a user charge basis. Fleet Service Fund To account for the acquisition, operation and maintenance of all City - owned or leased motorized vehicles. Information Services Fund This fund provides printing, copying, mail, central stores and data processing services to the various departments and programs. Internal Insurance Fund To account for the City's risk management program and various insurance - related costs. Its activities relate principally to general liability, workers' compensation, long -term disability, property damage and unemployment insurance. 116 ASSETS Current assets Pooled cash and investments Cash with fiscal agent Accounts receivable Interest receivable Advances to other funds Prepaid expenses Due from other funds Total current assets Noncurrent assets Capital assets Equipment Less accumulated depreciation Net capital assets Total noncurrent assets Total assets City of Baldwin Park Combining Statement of Net Assets Internal Service Funds June 30, 2012 Fleet Information Internal Services Services Insurance Total $ 59,316 136,798 3,422,786 $ 3,618,900 567 83 10,389 11,039 - 83 3,659 3,742 2,706 17,642 - 20,348 - - 2,555,026 2,555,026 62,589 154,606 5,991,860 6,209,055 4,311,766 2,561,766 - 6,873,532 (4,121,262) (2,360,847) - (6,482,109) 190,504 200,919 - 391,423 190,504 200,919 - 391,423 253,093 355,525 5,991,860 6,600,478 LIABILITIES Current liabilities Accounts payable 85,869 40,052 23,738 149,659 Current portion of capital lease obligations 84,413 - - 84,413 Current portion of insurance liabilities - - 1,350,000 1,350,000 Total current liabilities 170,282 40,052 1,373,738 1,584,072 Noncurrent liabilities Capital lease obligations 16,294 - - 16,294 Workers' compensation liability - - 5,923,583 5,923,583 General insurance liability - - 689,475 689,475 Unemployment insurance liability - - 20,000 20,000 Disability insurance liability - - 75,000 75,000 Total noncurrent liabilities 16,294 - 6,708,058 6,724,352 Total liabilities 186,576 40,052 8,081,796 8,308,424 NET ASSETS Invested in capital assets, net of related debt 89,797 200,919 - 290,716 Unrestricted (23,280) 114,554 (2,089,936) (1,998,662) Total net assets $ 66,517 315,473 (2,089,936) $ (1,707,946) 117 City of Baldwin Park Combining Statement of Revenues, Expenses and Changes in Fund Net Assets Internal Service Funds Year ended June 30, 2012 Operating revenues Charges for services Other Total operating revenue Operating expenses Maintenance and operations Internal service charges Provision for insurance claims Depreciation Lease and equipment purchase expense Interest expense Personal services Contractual services Total operating expenses Operating income (loss) Nonoperating income Fleet Information Internal Services Services Insurance Total $ 1,150,100 833,826 2,446,056 $ 4,429,982 363 6,859 - 7,222 1,150,463 840,685 2,446,056 4,437,204 516,287 162,918 1,219 680,424 72,700 34,000 12,701 119,401 - - 2,324,456 2,324,456 251,239 34,389 - 285,628 77 72,150 - 72,227 7,439 389 - 7,828 243,022 337,418 124,690 705,130 204,278 176,846 92,562 473,686 1,295,042 818,110 2,555,628 4,668,780 (144,579) 22,575 (109,572) (231,576) Gain on sale /disposal of capital assets 4,584 - - 4,584 Interest 4 282 11,786 12,072 Total nonoperating income 4,588 282 11,786 16,656 Change in net assets (139,991) 22,857 (97,786) (214,920) Net assets - beginning 206,508 292,616 (1,992,150) (1,493,026) Net assets - ending $ 66,517 315,473 (2,089,936) $ (1,707,946) 118 City of Baldwin Park Combining Statement of Cash Flows Internal Service Funds Year ended June 30, 2012 Fleet Information Internal Services Services Insurance Total Cash flows from operating activities Receipts from customers and users $ 1,150,463 840,685 2,468,633 $ 4,459,781 Payments to suppliers (835,823) (630,602) (156,739) (1,623,164) Payments to employees (166,141) (175,112) (87,235) (428,488) Payments for insurance - - (1,671,700) (1,671,700) Net cash provided by (used in) operating activities 148,499 34,971 552,959 736,429 Increase (decrease) in accounts payable 41,839 (20,263) (12,802) Cash flows from capital and related financing activities Increase in prepaid expenses - (1,730) - Purchases of equipment - (16,000) - (16,000) Proceeds from sale of equipment 4,584 148,499 34,971 4,584 Additions (reductions) in capital lease obligations (105,335) (41,555) (146,890) Net cash used in capital and related financing activities (100,751) (57,555) (158,306) Cash flows from non - capital financing activities Interfund advances Net cash provided by (used in) non - capital financing activities Cash flows from investing activities Interest received Net increase (decrease) in cash and cash equivalents (929,241) (929,241) (929,241) (929,241) 62 359 11,792 12,213 47,810 (22,225) (364,490) (338,905) Beginning cash and cash equivalents 11,506 159,023 3,787,276 3,957,805 Ending cash and cash equivalents $ 59,316 136,798 3,422,786 $ 3,618,900 Reconciliation of operating income (loss) to net cash provided by (used in) operating activities: Operating income (loss) $ (144,579) 22,575 (109,572) $ (231,576) Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation 251,239 34,389 - 285,628 (Increase) decrease in accounts receivable - - 22,577 22,577 Increase (decrease) in accounts payable 41,839 (20,263) (12,802) 8,774 Increase in prepaid expenses - (1,730) - (1,730) Increase in insurance liabilities - - 652,756 652,756 Net cash provided by (used in) operating activities $ 148,499 34,971 552,959 $ 736,429 119 City of Baldwin Park Description of Fiduciary Funds Fiduciary funds are used to account for assets held by the City, as an agent for individuals, private organizations and other governments. 120 City of Baldwin Park Statement of Changes in Assets and Liabilities - Fiduciary Funds Year ended June 30, 2012 July 1, 2011 Additions Deletions June 30, 2012 Assets Accounts payable $ 16,235 409,197 Pooled cash investments $ 549,737 474,048 365,751 $ 658,034 Interest receivable 518 441 518 441 Total $ 550,255 474,489 366,269 $ 658,475 Liabilities Accounts payable $ 16,235 409,197 396,288 $ 29,144 Deposit accounts: Bail deposits - 894 894 - Canine donation 1,688 - - 1,688 Crime prevention 8,899 3,464 2,144 10,219 Explorer 1,140 570 570 1,140 Leagues, etc. 22,414 50,843 56,425 16,832 Other 6,109 5,228 - 11,337 Miscellaneous trust 41,067 55,047 56,411 39,703 Court cost fees 32 - - 32 Contingency deposits 17,910 - - 17,910 Engineering trust 183,707 4,097 16,010 171,794 Police donations 50 - - 50 Bicycle Rodeo 472 - - 472 Donations 48,055 319,322 254,390 112,987 Inmate welfund 5,381 1,409 1,553 5,237 Offsite improvement bond 42,385 - - 42,385 Police foundation 11,019 510 - 11,529 Pride program 43,575 38,469 42,194 39,850 Police training 57,133 36,080 21,965 71,248 Swimteam /Interpreting 21,563 22,405 10,650 33,318 Family impact /Domestic violence 1,553 2,251 150 3,654 Family impact 4,600 1,500 3,500 2,600 Temp wireless facility - 20,000 - 20,000 Revolving nuisance abatement 2,911 - - 2,911 Street signs 4,876 - - 4,876 Fingerprints - clients 1,666 282 204 1,744 NPDES Refundable Deposit 5,815 - - 5,815 Total $ 550,255 971,568 863,348 $ 658,475 121 Report of Independent Auditors on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing The Honorable City Council of the City of Baldwin Park, California We have audited the basic financial statements of the City of Baldwin Park, California (the City), as of and for the year ended June 30, 2012, and have issued our report thereon dated December 26, 2012. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Internal Control Over Financial Reportin Management of the City is responsible for establishing and maintaining effective internal control over financial reporting. In planning and performing our audit, we considered the City's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the City's internal control over financial reporting. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined previously. 122 (This page intentionally left blank.) 123 Compliance and Other Matters As part of obtaining reasonable assurance about whether the City of Baldwin Park's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. This report is intended solely for the information of the members of the City Council, management, federal awarding agencies and pass- through entities, and is not intended to be and should not be used by anyone other than these specified parties. + 41101. L Los Angeles, California December 26, 2012 124 (This page intentionally left blank.) 125 City of Baldwin Park Statistical Section This part of the City of Baldwin Park's Comprehensive Annual Report provides information to better understand the City's overall financial condition. This has not been audited by an independent auditor. Financial Trends Information contain information to assist the reader understand how the City's financial performance has changed overtime. Revenue Capacity Information contain information to help the reader assess the City's ability to generate its own revenue. Debt Capacity Information contain information to assess the affordability of the City's current levels of outstanding debt and its ability to issue additional debt. Demographic and Economic Information assist the user in understanding the environment within which the City's financial activities takes place. Operating Information provides service and infrastructure data to help the reader understand how the City's financial statement information relates to services the City provides and the activities it performs. Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive reports for the relevant year. The City implemented the GASB 34 in 2003 fiscal year. Schedules presenting government -wide financial statements include information beginning in that year. 126 L C L O O v CO � L � � N U N J Q Z V (O N (O O) co I- LO r O o N O O r LO d) N O W d O CO r (O N O) N O) O) W co M O) N V r O O) (D N V O) (D N V CO LO d N M o 0 N V CO N O W O N d) m N Ln r O O LO r N V O m O G) o— o O W r O) n o 0 (D O) co Lo N co O O) V N N O) M CO O (O O) co CO N N co CO LO O) O) co p) O O N V o O (O N V N O O LO r V I- N LO (O co LO N CO O co r M r r o O O W O M Y o O (O co o V (D W NN O ( O 0 O O r d) O } N V O (O N r M N (p LO (O � M cl U r O O N o L O V O O V N N LO (O LO r O) O O co LO CO O N N V r O O LO (D d r W n o O CO O O V LO O) N co o r (p O O) O N (O r LO r LO O) O O O V LO LO CO CO r o O CO �2 (O co O) O co O � N r O — O O) O N N N (O Lp r ch V V O d) Lo r co o O O O V O O V (O N N M (O V V O O O d t V � V V d) M W N co co O O O N Q O O co M NN M r N N O N (fl (fl O � N N c/1 C � N N C � N N o j U o U — N C Q D ( U E E 6 (E O U ` p N (6 t/) w N N > > N C O m E m a) L > U O (D � o co O N O M (D C N N N � Q N (p U (>p 0 w O N � O � w M m m M (n m Q U) c� (D w (' O -1 c O O C 6 N E E Q N E_ Q E n Y O O m Q O 0 � O U E O O L � pl- N r General Fund Nonspendable Restricted Committed Assigned Unassigned Total General Fund All Other Governmental Funds Nonspendable Restricted Committed Assigned Unassigned Total All Other Governmental Funds City of Baldwin Park Fund Balances of Governmental Funds Fiscal Years 2012 and 2011 2011 2012 $ 11,170,510 $ 11,173,252 - 2,477,618 - 606,926 5,906,643 1,826,473 17,077,153 16,362,569 13,224,533 465,992 20,348,744 27,732,162 - 1,649,752 (22,666,590) (144,174) 10,906,687 29,703,732 Note: The City of Baldwin Park elected to present fund balance information under GASB #54 prospectively in the Statistical Section; refer to page 132 for reporting of the previous years under the old guidelines. 128 City of Baldwin Park Change in Net Assets Last Ten Fiscal Years Fiscal Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Expenses: Governmental activities: (28,078,683) (29,074,350) (33,170,292) (26,705,730) (27,984,131) (33,390,161) (34,914,819) (33,927,589) (33,690,328) (32,259,085) General government $ 3,434,298 4,010,603 4,526,306 4,132,120 3,346,930 3,431,918 2,698,418 3,142,685 4,360,848 4,009,113 Public safety 10,946,225 11,747,014 14,277,853 14,934,099 15,333,496 17,695,323 18,917,403 18,810,685 18,819,467 19,929,293 Public works 13,026,398 15,112,436 18,778,723 15,699,303 14,785,160 14,278,888 13,730,184 13,549,660 13,518,003 13,442,178 Community development 8,890,421 10,178,582 9,789,023 9,145,085 10,367,871 12,586,141 11,931,976 14,060,899 10,968,474 8,885,636 Recreation services 1,796,381 1,979,193 2,229,254 2,249,912 2,429,110 3,258,992 4,666,863 4,383,579 4,462,052 4,110,432 Decline in value of property held for resale 6,308,905 - 569,345 496,518 485,263 Net Transfers out to successor agency 1,077,977 - 1,223,237 1,415,181 1,556,904 1,626,176 1,997,823 2,312,090 2,239,905 716,587 Pass through Expenditures 2,260,688 746,108 3,462,803 202,024 166,715 129,495 309,644 2,407,299 31,913 25,328 Interest and fiscal charges 3,592,259 3,058,165 5,161,613 2,601,948 3,319,921 3,910,677 3,658,849 3,424,605 3,440,701 2,140,361 Total governmental activities expenses 47,994,887 46,832,101 54,762,772 48,762,467 49,582,488 55,161,939 55,603,693 57,372,113 55,569,545 53,233,600 Program revenues: Governmental activities: (28,078,683) (29,074,350) (33,170,292) (26,705,730) (27,984,131) (33,390,161) (34,914,819) (33,927,589) (33,690,328) (32,259,085) Charges for services General government 2,017,156 2,520,410 3,003,433 3,110,259 4,651,630 5,619,213 4,769,966 229,700 608,221 250,530 Public safety 809,255 1,161,286 971,414 755,023 11,732 5,175 27,622 1,987,795 1,757,968 1,574,992 Public works 299,298 - 5,812,422 308,306 43,803 36,764 67,512 222,191 157,631 232,553 Community development 49,727 1,947 1,119 1,655 34,837 82,892 97,944 1,256,198 1,602,720 1,496,976 Recreation services - 569,345 496,518 485,263 Operating grants and contributions 1,077,977 - 1,223,237 1,415,181 1,556,904 1,626,176 1,997,823 2,312,090 2,239,905 2,368,974 General government 2,260,688 20,033 3,462,803 202,024 166,715 129,495 309,644 2,407,299 31,913 25,328 Public safety 2,584,955 2,878,365 2,953,966 5,326,312 4,752,495 1,325,679 1,118,516 2,422,392 798,702 1,816,475 Public works 1,826,369 1,818,597 1,762,392 1,051,285 2,255,316 1,835,967 1,768,134 3,400,330 4,104,695 4,822,508 Community development 7,934,384 7,998,365 8,489,222 9,642,460 9,471,128 8,826,627 9,120,098 8,132,297 7,421,769 5,359,522 Recreation services 248,129 198,744 182,795 195,939 125,226 216,360 551,636 216,980 175,407 276,815 Capital grants and contributions - - General government 290,340 888,560 315,103 752,715 73,358 1,963,573 7,127,812 44,654 Public safety 2,833,548 1,067,866 681,260 360,437 76,300 33,849,365 2,857,802 31,658,782 2,041 28,008,186 Public works 852,075 74,330 84,076 1,103,038 9,175 3,693,606 (2,167,142) 5,007,296 3,836,812 4,203,011 Community development 461,308 17,808 884,820 385,888 Total governmental activities revenues 19,916,204 17,757,751 21,592,480 22,056,737 21,598,357 21,771,778 20,688,874 23,444,524 21,879,217 20,974,515 Net revenues (expenses): Governmental activities: (28,078,683) (29,074,350) (33,170,292) (26,705,730) (27,984,131) (33,390,161) (34,914,819) (33,927,589) (33,690,328) (32,259,085) General revenues and other changes in net assets: Taxes 15,023,648 16,291,814 17,464,924 23,929,880 23,929,880 Property Taxes 6,962,114 7,470,769 7,612,349 7,479,696 8,400,034 12,510,908 13,372,060 11,944,651 11,645,328 11,420,680 Motor Vehicle in lieu 4,875,329 3,130,076 5,812,422 5,845,528 6,115,126 6,603,499 6,900,045 6,244,987 5,713,857 - Sales Tax 4,343,135 4,607,700 5,842,303 5,706,901 6,568,814 6,456,581 5,625,840 5,251,513 5,418,895 5,324,720 Tax Increment 3,229,580 Franchise Tax 1,077,977 821,946 1,223,237 1,415,181 1,556,904 1,626,176 1,997,823 2,312,090 2,239,905 2,368,974 Utty Users Tax 2,260,688 2,410,518 2,269,238 2,273,711 2,545,312 2,591,143 2,459,483 2,407,299 2,266,892 2,215,756 Other Taxes 379,735 980,881 517,797 1,208,863 1,444,509 1,131,261 1,129,061 1,145,692 1,084,450 1,142,083 Use of money and property 31,320 236,594 Interest on advances to successor agency 745,205 Interest 869,759 352,223 566,235 768,579 2,355,107 2,177,082 1,190,007 388,977 721,172 119,287 Transfers - - Other 290,340 888,560 315,103 752,715 73,358 1,963,573 7,127,812 1,441,901 Total general revenues and transfers 20,800,057 20,010,707 24,133,921 25,587,018 29,300,909 33,849,365 32,747,677 31,658,782 36,218,311 28,008,186 Changes in net assets $ (7,278,626) (8,080,009) (9,036,371) (1,118,711) 1,316,778 459,204 (2,167,142) (2,268,807) 2,527,983 (4,250,899) The City of Baldwin Park implemented GASB 34 for the fiscal year ended June 30, 2003. Information prior to the implementation of GASB 34 is not available. 129 130 City of Baldwin Park Fund Balances of Governmental Funds Last Eight Fiscal Years Fiscal Year 2003 (2) 2004 2005 2006 2007 2008 2009 2010 General fund: Reserved $ 8,870,587 9,408,848 10,263,447 10,922,656 11,933,339 12,755,776 13,268,093 13,705,002 Unreserved 3,267,129 2,353,328 3,812,188 1,953,646 3,060,821 4,829,573 5,187,803 5,213,836 Total general fund 12,137, 716 11, 762,176 14, 075, 635 12, 876, 302 14, 994,160 17, 585, 349 18, 455, 896 18, 918, 838 All other governmental fund: Reserved 29,391,653 7,771,116 (3) 9,579,762 (4) 8,632,944 6,807,808 6,845,864 13,250,641 9,944,381 Unreserved, reported in Special revenue funds 367,879 5,460,034 3,380,229 8,594,017 13,206,630 17,596,872 14,572,267 17,187,651 Capital projects funds (17 ,085,858) (7,602,948) (7,580,988) (10,518,294) (13,936,874) (15,295,561) (16,450,152) (17,125,366) Debt service funds (387,653) 221,614 37,078 597,281 492,599 58,700 (588,740) 2,465,756 Total all other governmental funds (17,105,632) (1,921,300) (4,163,681) (1,326,996) (237,645) 2,360,011 (2,466,625) 2,528,041 Total Governmental Funds $ 24,423,737 17,611,992 19,491,716 20,182,250 21,564,323 26,791,224 29,239,912 31,391,260 The City of Baldwin Park has elected to show only eight years of data for this schedule. (1) This schedule reports using the modified accrual basis of accounting. (2) The City implemented GASB 34, the new reporting standard in fiscal year 2003. (3) Reserved fund balance at June 30, 2004 includes unexpended bond proceeds from 2003 Sales Tax & Tax allocation Refunding Bonds. (4) Reserved fund balance at June 30, 2005 includes unexpended bond proceeds from 2004 Lease Revenue Refunding Bonds. (5) In 2011 the City Adopted GASB 54 which revises the reporting of Fund Balance 130 City of Baldwin Park Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years Debt service as a percentage of noncapital expend 13.45% 11.43% 11.13% 11.09% 9.31% 12.05% 17.56% 11.31% 11.57% 8.75% (1) This schedule reports using the modified accrual basis of accounting. 131 Fiscal Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Revenues: Taxes $ 15,399,647 16,097,504 17,634,869 18,840,064 21,023,819 24,574,607 31,794,891 29,176,659 28,781,829 26,010,242 Licenses and permits 598,691 875,871 737,696 774,671 696,300 519,888 564,596 625,889 583,935 570,982 Fines and forfeitures 808,469 821,347 704,472 754,084 1,818,409 1,623,154 2,039,461 3,379,541 1,741,941 2,132,229 Use ofmoney and property 1,046,916 978,227 830,195 1,199,295 1,445,053 1,387,184 723,158 449,266 563,120 552,322 Intergovernmental 21,095,301 18,675,088 21,722,936 22,490,048 22,832,101 21,568,213 14,885,994 17,611,402 17,148,467 15,365,584 Charges for services 1,071,774 1,247,760 1,606,275 1,963,498 1,751,362 2,732,913 1,546,595 1,830,657 1,900,607 1,903,087 Others 1,930,064 1,795,053 3,356,469 4,779,026 2,928,555 4,252,099 2,053,604 2,193,287 2,114,796 1,990,337 Total revenues 41,950,862 40,490,850 46,592,912 50,800,686 52,495,599 56,658,058 53,608,299 55,266,701 52,834,695 48,524,783 Expenditures Current: General government 2,309,986 2,628,791 2,989,559 4,731,895 4,275,924 4,001,214 3,031,641 2,882,320 3,071,399 3,470,852 Public safety 10,506,730 11 ,474,211 13,636,584 15,332,536 27,712,375 16,434,302 17,164,777 17,006,136 17,132,322 18,055,455 Public works 7,826,022 11,366,634 13,121,793 8,479,676 8,393,001 7,395,782 6,204,823 5,462,651 5,360,016 5,907,233 Community development 6,982,338 8,586,039 9,609,754 10,064,124 7,949,696 12,846,577 12,366,593 14,252,879 10,870,890 9,219,672 Recreation services 1,766,866 2,030,328 2,020,268 2,198,121 2,375,511 3,057,408 4,336,564 4,078,500 4,203,053 3,839,072 Nondepartmental 898,465 1,090,085 1,126,223 Capital outlay: Public works 8,167,663 1,676,923 3,845,993 4,467,646 289,718 663,045 3,673,895 5,271,250 1,378,864 Community development 2,552,786 746,108 1,353,705 1,123,087 3,142,638 932,383 584,672 16,709 2,898,564 Debt service: Principal retirement 1,321,461 1,308,745 1,807,496 2,079,496 1,691,194 2,192,000 5,638,000 2,870,000 2,924,000 3,003,000 Interest and fiscal charges 3,227,829 2,833,798 2,617,225 3,149,014 3,786,350 3,899,259 3,615,036 3,148,521 2,948,628 2,131,081 Costs of issuance and other costs 360,730 529,670 620,329 Total expenditures 45,920,876 44,271,332 48,902,936 51,003,942 63,794,335 51,048,643 53,605,150 53,374,902 51,798,267 49,903,793 Excess (deficiency) of revenues over (under) expenditures (3,970,014) (3,780,482) (2,310,024) (203,256) (11,298,736) 5,609,415 3,149 1,891,799 1,036,428 (1,379,010) Other financing sources (uses): Gain on sale of properties 522,745 Loan Proceeds 158,922 109,869 Transfers in 10,559,801 10,265,751 16,093,530 8,902,425 7,740,903 4,884,001 3,178,433 4,605,577 5,089,645 3,311,585 Transfers out (10,593,166) (10,266,751) (16,130,727) (9,643,422) (7,870,091) (5,266,514) (3,775,309) (4,484,544) (5,089,645) (4,069,825) Issuance ofbonds 4,500,884 6,329,200 10,840,000 12,810,000 3,022,000 Capital leases 40,650 6,944 341,290 Payment to refunded bond escrow agent (9,400,125) (6,620,000) - Interest on advance from other funds (945,887) - Decline in value of property held for resale (6,308,905) Total otherfinancing sources (uses) (2,787,273) (3,031,275) 4,189,747 (399,707) 12,680,812 (382,513) 2,425,124 279,955 632,614 (758,240) Special items Gain on sale of properties 4,988,913 Items related to payment of loans 383,889 Total special items 5,372,802 Extraordinary items RDA dissolution transactions 9,492,143 Total extraordinary items 9,492,143 Net change in fund balance $ (6,757,287) (6,811,757) 1,879,723 (602,963) 1,382,076 5,226,902 2,428,273 2,171,754 1,669,042 7,354,893 Debt service as a percentage of noncapital expend 13.45% 11.43% 11.13% 11.09% 9.31% 12.05% 17.56% 11.31% 11.57% 8.75% (1) This schedule reports using the modified accrual basis of accounting. 131 City of Baldwin Park Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years Fiscal year ended Secured City Unsecured Less Exemptions Taxable Assessed Value Secured Redevelopment Agency Less Unsecured Exemptions Taxable Assessed Value Direct Tax Rate 2003 $ 1,729,661,169 $ 39,303,359 $ 13,651,027 $ 1,755,313,501 $ 741,532,679 $ 82,524,795 $ 239,367,154 $ 584,690,320 0.296% 2004 1,861,083,255 44,116,130 12,913,006 1,892,286,379 749,813,199 84,962,820 222,098,703 612,677,316 0.293% 2005 2,025,549,395 43,009,563 22,493,461 2,046,065,497 774,080,293 103,565,661 229,395,358 648,250,596 0.293% 2006 2,263,864,180 44,390,284 21,355,005 2,286,899,459 857,619,427 100,497,552 237,073,474 721,043,505 0.297% 2007 2,546,998,136 52,327,909 26,597,044 2,572,729,001 925,514,386 110,432,488 241,756,847 794,190,027 0.297% 2008 2,749,952,334 55,546,639 33,844,082 2,771,654,891 1,062,689,327 116,148,602 266,636,424 912,201,505 0.297% 2009 2,981,835,548 61,073,837 34,382,263 3,008,527,122 1,042,609,407 127,963,961 267,364,266 903,209,102 0.297% 2010 3, 800, 274, 206 196, 070, 446 302, 325, 645 3, 694, 019, 007 1,052,169,814 133, 526, 046 267, 781, 524 917, 914, 336 0.297 2011 3,753,103,235 189, 227, 317 305,138, 330 3,637,192,222 1, 039, 967, 531 125, 050, 444 270, 337, 604 894, 680, 371 0.279 2012 3, 807, 825, 639 186, 940, 080 325, 255, 386 3, 669, 510, 333 1,045,148,705 129, 337, 263 289, 319, 905 885,166, 063 0.279 Note (1): Beginning in fiscal year 1982, the valuations provided are equal to the full cash value of the property assessed. In the preceding years, the assessed valuations reflected only 25% on the full cash value. This change reflects ratification of Article AIIA of the California Constitution (Proposition 13). Source: Los Angeles County Assessor's Office. HdL, Conan & Cone 132 Source: Los Angeles County Assessor's Office. 133 2003 2004 2005 2006 2007 City Balance $ 1,755,313,501 1,892,286,379 2,046,065,497 2,286,899,459 2,572,729,001 Puente - Merced 32,548,202 33,523,384 30,360,600 33,966,864 37,944,823 San Gabriel River 159,312,368 168,277,026 184,956,789 185,090,403 210,499,042 West Ramona Blvd 23,027,839 25,415,939 27,631,781 30,206,884 33,947,794 Central Business District 85,100,350 98,287,728 103,558,425 111,778,180 122,697,128 Delta 26,539,683 26,981,132 28,173,917 29,464,923 32,503,459 Sierra Vista 247,075,556 260,192,107 273,569,084 330,536,251 356,597,781 Net assessed valuation $ 2,328,917,499 2,504,963,695 2,694,316,093 3,007,942,964 3,366,919,028 Source: Los Angeles County Assessor's Office. 133 City of Baldwin Park Assessed Valuation by Tax District Last Ten Fiscal Years 2008 2009 2010. 2011 2012 2,839,353,155 3,008,527,122 3,694,019,007 3,637,192,222 3,669,510,333 38,114,314 38,372,334 39,875,145 39,330,649 44,445,445 223,584,610 240,263,192 253,628,573 248,204,462 239,233,781 37,749,969 39,485,273 35,584,527 33,844,951 35,104,603 136,574,743 144,458,926 138,475,546 136,611,945 133,521,566 33,745,358 34,109,467 34,696,594 34,058,316 34,738,187 374,734,247 406,519,910 415,653,951 402,630,048 398,122,481 3,683,856,396 3,911,736,224 4,611,933,343 4,531,872,593 4,554,676,396 134 City of Baldwin Park Direct and Overlapping Property Tax Rates (Rate per $100 of assessed value) Last Ten Fiscal Years Agency 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 BASIC LEVY 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 Baldwin Park Unified 0.00389 0.08126 0.11005 0.09961 0.08877 0.1326 0.15384 0.16101 0.16673 0.17506 Bassett United School Dustrict 0.00000 0.00000 0.00000 0.09051 0.08210 0.10806 0.08990 0.10877 0.12316 0.11628 County Detention Facilities 1987 Debt 0.00103 0.00099 0.00092 0.00080 0.00066 0.00000 0.00000 0.00000 0.00000 0.00000 El Monte City School District 0.06592 0.05072 0.07247 0.08057 0.06402 0.08068 0.09045 0.11907 0.12388 0.12733 EL Monte Union High School 0.00000 0.03573 0.03928 0.05425 0.05847 0.02820 0.05160 0.09654 0.08475 0.09591 LA County Flood Control 0.00088 0.00046 0.00025 0.00005 0.00005 0.00000 0.00000 0.00000 0.00000 0.00000 Metropolitan Water District 0.00670 0.00610 0.00580 0.00520 0.00470 0.00450 0.00430 0.00430 0.00370 0.00370 Mt. San Antonio College 0.01946 0.01525 0.01473 0.02122 0.02530 0.01750 0.02333 0.02571 0.02636 0.02642 Rio Hondo Community College Dist 0.00000 0.00000 0.02170 0.01802 0.01469 0.01369 0.02320 0.02714 0.03439 0.03418 West Covina Unified 0.07985 0.05084 0.08223 0.06148 0.06511 0.05143 0.06041 0.05258 0.05920 0.05377 Total Direct & O \erlapping Tax Rates 1.17773 1.24135 1.34743 1.43171 1.40387 1.43666 1.49703 1.59512 1.62217 1.63266 City Share of 1 % Levy Per Prop 13 0.12058 0.12058 0.12058 0.12058 0.12058 0.12058 0.12058 0.12058 0.12058 0.12058 Rede \elopment Rate 1.00861 1.00755 1.00697 1.00604 1.00541 1.00450 1.00430 1.00430 1.00370 1.00370 Total Direct Rate 0.27381 0.27104 0.27050 0.27481 0.27694 0.27360 0.26810 0.28157 0.27918 0.27179 135 City of Baldwin Park Ten Principal Property Taxpayers Current Year and Ten Years Ago 2012 2003 136 Assessed Percentage Assessed Percentage value total value total $ 33,344,120 0.91 % $ 21,893,715 0.94 % In N Out Burger Inc. Wal Mart Real Estate Business Trust 30,279,140 0.83 % Sierra center Investments LLC 17,990,000 0.49 % Kaiser Foundation Hospitals 0.00 % 27,063,408 1.16 % Home Depot USA 19,082,816 0.52 % 15,779,620 0.68 % J & J Warehouse Company LLC 17,017,650 0.46 % Baldwin Park Commerce Center 16,494,490 0.45 % Target Corporation 0.00 % 12,576,006 0.54 % Otting Properties 13,032,561 0.36 % 11,113,348 0.48 % OFT Family inc 10,998,141 0.30 % Calwest Industrial Property 0.00 % 31,973,430 1.37 % Dayton Hudson 14,791,466 0.40 % 0.00 % MOM enterprises 10,567,522 0.29 Ortel Corppration AFA Agere Systems 0.00 % SNS Cloverleaf Company 15,631,457 0.67 % Waste Management 15,773,494 0.68 % J. Lawrence- Han 11,354,563 0.49 % SDC Partners Limited 11,666,876 0.50 % Total taxable assessed value often largest taxpayers 183,597,906 5.00 % 174,825,917 7.51 % Total taxable assessed value of other taxpayers 3,485,912,427 95.00 2,154,091,582 92.49 Total taxable assessed value of all taxpayers $ 3,669,510,333 100.00 % $ 2,328,917,499 100.00 % The amounts shown above include assessed value data for both the City and the Community Development Commission of Baldwin Park. Source: HdL Coren & Cone Hinderliter. del-lamas & Associates 136 City of Baldwin Park Property Tax Levies and Collections Last Ten Fiscal Years Note (1): The figures prouded for property tax leues and collections are for the City of Baldwin Park only, and do not include tax increments leaned and collected on behalf of the Baldwin Park Redevelopment Agency. Note (2): Article MIA of the California Constitution limits the amount of any ad valorem tax on real property to 1% of the full cash value, except that additional taxes may be levied to pay debt seMce on general obligation bonds and certain other indebtedness approved by the voters. This tax is collected by the County Tax Collector and is distributed according to a formula established by the State Legislature. Note (3) The City of Baldwin Park combined the Property Taxes accounts into one. Source: County of Los Angeles, Office of the Auditor /Controller. 137 Collections within the Collections in Delinquent Tax Fiscal Secured Unsecured Taxes Leaned Fiscal Year of Levy Subsequent Years Collections Total Collections to Date year tax tax for the tax year Amount Percent of Levy Amount Amount Amount Percent of Levy 2003 $ 3,667,739 $ 29,280 $ 3,697,019 $ 3,901,365 106% $ 102,856 $ 28,365 $ 4,032,586 109% 2004 3,870,991 49,271 3,920,262 4,127, 233 105% 123,601 37,455 4,288,289 109 2005 4,079,647 44,155 4,123, 802 4,451,357 108% 237,685 23,697 4,712,739 114 2006 4,430,387 24,964 4,455,351 4,930,376 111% 208,527 31,781 5,170,684 116% 2007 4,839,635 35,639 4,875,274 5,409,350 111% 333,929 31,142 5,774,421 118% 2008 5,223,366 66,559 5,289,925 5,343,719 101% (3) (3) 5,343,719 101 2009 3,948,959 79,045 4,028,004 5,906,716 147% (3) (3) 5,906,716 147% 2010 4,321,922 57,803 4,379,725 5,193,394 119% (3) (3) 5,193,394 119% 2011 5,157,261 68,860 5,226,121 5,220,369 100% (3) (3) 5,220,369 100% 2012 5,114, 052 48,090 5,162,141 5,182, 322 100% (3) (3) 5,182, 322 100 Note (1): The figures prouded for property tax leues and collections are for the City of Baldwin Park only, and do not include tax increments leaned and collected on behalf of the Baldwin Park Redevelopment Agency. Note (2): Article MIA of the California Constitution limits the amount of any ad valorem tax on real property to 1% of the full cash value, except that additional taxes may be levied to pay debt seMce on general obligation bonds and certain other indebtedness approved by the voters. This tax is collected by the County Tax Collector and is distributed according to a formula established by the State Legislature. Note (3) The City of Baldwin Park combined the Property Taxes accounts into one. Source: County of Los Angeles, Office of the Auditor /Controller. 137 Less debt Net service bonded funds debt 6,917,645 $ 36, 227, 355 $ 6,892,662 35,238,338 6,496,543 38,359,457 6,058,197 37,030,892 6,588,273 47,542,772 6,192, 432 45, 744, 568 4,977,495 41,551,505 3,354,699 43,572,301 1,751,761 42,512,239 2,323,299 39, 213, 701 City of Baldwin Park Ratio of Outstanding Debt by Type Last Ten Fiscal Years Capital Notes Total (2) Fiscal debt Total Gross year (1) assessed bonded ended Population value debt 2003 79,600 $ 2,593,022,002 $ 43,145,000 $ 2004 80,300 2,739,975,404 42,131,000 2005 81,226 2,946,204,912 44,856,000 2006 80,986 3,266,371,443 43,089,089 2007 81,146 3,635,272,919 54,131,045 2008 81,281 3,984,336,902 51,937,000 2009 81,445 4,213,482,753 46,529,000 2010 81,604 4,611,933,343 46,927,000 2011 75,664 4,531,872,593 44,264,000 2012 75,830 4,554,676,396 41,537,000 Less debt Net service bonded funds debt 6,917,645 $ 36, 227, 355 $ 6,892,662 35,238,338 6,496,543 38,359,457 6,058,197 37,030,892 6,588,273 47,542,772 6,192, 432 45, 744, 568 4,977,495 41,551,505 3,354,699 43,572,301 1,751,761 42,512,239 2,323,299 39, 213, 701 City of Baldwin Park Ratio of Outstanding Debt by Type Last Ten Fiscal Years Capital Notes Total leases payable debt 1,204,000 $ 8,207,000 $ 45, 638, 355 $ 1,221,000 5,118,490 41,577,828 1,148, 000 4,369,000 43, 876, 457 982,000 4,108, 000 42,120, 892 1,019,000 5,118,490 53,680,262 773,000 5,118,490 51,636,058 725,000 7,910,490 50,186, 995 514,612 4,369,000 48, 455, 912 247,596 4,108, 000 46, 867, 835 289,037 3,832,000 43,334,737 Note (1): Population figures were obtained from the State of California Department of Finance. Note (2): The figures presented include both bonds and notes supported by property tax allocations and by special benefit assessments for the combined entity as described in note 1 to the Basic Financial Statements. 138 Debt per 573 518 540 520 662 635 616 594 619 571 City of Baldwin Park Computation of Legal Debt Margin Last Ten Fiscal Years Fiscal General % of Legal year Assessed Valuation Debt Limit Obligation Debt Debt ended Amount % Adjusted % Amount Bonds Limit Margin 2003 $ 2,593,022,002 25% $ 648,255,501 15% $ 97,238,325 $ 36,227,355 37.3% $ 61,010,970 2004 2,739,975,404 25% 684,993,851 15% 102,749,078 35,238,338 34.3% 67,510,740 2005 2,946,204,912 25% 736,551,228 15% 110,482,684 38,359,457 34.7% 72,123,227 2006 3,266,371,443 25% 816,592,861 15% 122,488,929 43,089,089 35.2% 79,399,840 2007 3,635,272,919 25% 908,818,230 15% 136,322,735 54,131,045 39.7% 82,191,690 2008 3,984,336,902 25% 996,084,226 15% 149,412,634 51,937,000 34.8% 97,475,634 2009 4,213,482,753 25% 1,053,370,688 15% 158,005,603 49,551,000 31.4% 108,454,603 2010 4,611,933,343 25% 1,152,983,336 15% 172,947,500 46,927,000 27.1% 126,020,500 2011 4,531,872,593 25% 1,132,968,148 15% 169,945,222 44,264,000 26.0% 125,681,222 2012 4, 554, 676, 396 25% 1,138, 669, 099 15% 170, 800, 365 41, 537, 000 24.3% 129, 263, 365 Note (1): The Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. When this provision was enacted the accessed valuation was based on 25% of the market value. After the 1981 -82 fiscal year, each parcel is assessed at 100% of the market value. The above computation converts the assessed valuation to the 25% level effective when the legal debt margin was enacted. Source: Los Angeles County Assessors Office. 139 City of Baldwin Park Direct and Overlapping Bonded Debt June 30, 2012 Total direct debt Percent 41,537,000 Overlapping debt: (4) Gross applicable to Baldwin Park Unified School District 1996 Ser A Debt Service bonded debt City of Baldwin Park's Baldwin Park Unified School District 2001 Refunding Debt Svc. June 30, 2012 Baldwin Park share of debt Direct debt: (3) 205,000 93.537 191,751 Baldwin Park 1915 Act AD99 -1 Bogart $ 0 100.000 $ 0 Baldwin Park 1915 Act AD2000 -1 Baldwin 0 100.000 0 Baldwin Park 2004 Lease Revenue Bond 9,290,000 100.000 9,290,000 Pension Obligation Bonds 8,695,000 100.000 8,695,000 Certificate of Participation 23,095,000 93.537 21,602,343 2001 Energy Conservation Bond 0 100.000 0 2002 Variable Rate Demand 2,137,000 100.000 2,137,000 Baldwin Park Redevelopment Agency 10,616,192 1.452 154,142 1990 Tax Allocation Bonds Series A 3,775,000 100.000 3,775,000 1998 San Gabriel Tax Allocation Bonds 4,875,000 100.000 4,875,000 2000 Merged Project Tax Allocation Bonds 8,680,000 100.000 8,680,000 2003 Tax Allocation Bonds Series 4,085,000 100.000 4,085,000 Total direct debt 41,537,000 Overlapping debt: (4) Baldwin Park Unified School District 1996 Ser A Debt Service 2,306,097 93.537 2,157,051 Baldwin Park Unified School District 2001 Refunding Debt Svc. 5,455,000 93.537 5,102,437 Baldwin Park Unified School District 2002 Series S -2003 Debt Svc. 205,000 93.537 191,751 Baldwin Park Unified School District 2002 Series S -2004 Debt Svc. 5,909,106 93.537 5,527,192 Baldwin Park Unified School District 2005 Refunding Bond 9,422,618 93.537 8,813,623 Baldwin Park Unified School District DS 2002 Series 2005 4,813,699 93.537 4,502,584 Baldwin Park Unified School District DS 2002 Series 2006 17,228,384 93.537 16,114,893 Baldwin Park Unified School District DS 2002 Series 2007 23,095,000 93.537 21,602,343 Baldwin Park Unified School District DS 2002 Series 2008 13,471,140 93.537 12,600,484 Bassett Unified Debt Service 2004 Seriies 2005A 11,003,352 1.452 159,763 Bassett Unified Debt Service 2004 Seriies 2005B 10,616,192 1.452 154,142 Bassett Unified Debt Service 2006 Seriies 2007 13,774,566 1.452 200,000 Bassett Unified Debt Service 2006 Seriies B 4,999,970 1.452 72,597 West Covina Unified School District DS 2000 Series C 335,000 0.271 909 West Covina Unified School District DS 2002 Refund Bond 29,295,000 0.271 79,447 West Covina Unified School District DS 2000 Series D 695,000 0.271 1,885 Rio Hondo Comm. College Dist Refunding 2005 43,206,005 0.098 42,229 Rio Hondo Comm. College Dist Ser A 2004A 5,340,000 0.098 5,219 Rio Hondo Comm. College Dist Ser 2004 SER 2008 63,651,844 0.098 62,212 Mt. San Antonio Comm. College Dist. DS 2004 B 6,200,000 5.386 333,919 Mt. San Antonio Comm. College Dist. DS 2005 Bond 48,600,843 5.386 2,617,536 Mt. San Antonio Comm. College Dist. DS 2001, 2006 Series C 79,212,694 5.386 4,266,224 Mt. San Antonio Comm. College Dist. DS 2001, 2008 SERIES D 23,827,409 5.386 1,283,293 El Monte Union High School SD DS 2002 Series A 2,065,000 0.255 5,275 El Monte Union High School SD DS 2002 Series B 3,485,000 0.255 8,903 El Monte Union High School SD DS 2006 Refunding Bond 35,718,692 0.255 91,247 El Monte Union High School DS 2008 Series A 53,225,754 0.255 135,970 EL MONTE UN HI GS 2002 SER C 28,705,000 0.255 73,330 Metropolitan Water District (1) 94,031,705 0.340 320,094 Total overlapping debt 86,526,549 Total direct and overlapping debt $ 128,063,549 2011/2012 Assessed Valuation: $ 2,938,648,178 (After deducting Redevelopment increment) Debt to Assessed Valuation Ratios: Direct debt 1.32 % Overlapping debt 2.94 Total debt 4.26 Notes: (1) This fund is a portion of a larger agency, and is responsible for debt in areas outside the City. (2) Debt figures include general obligation debt which is being repaid through property taxes. It excludes revenue, mortgage revenue, interim financing obligations, non - bonded capital lease obligations, and certificates of participation. Source: (3) City of Baldwin Park Department of Finance (4) HdL Coren & Cone, Los Angeles County Assessor Combined 2008/09 Lien Date Tax Rolls 140 City of Baldwin Park Full -time and Part -time City Employees By Function Last Ten Fiscal Years Full -time and Part -time Employees as of June 30, 2012 Function 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 General government 33 34 38 33 28 30 31 30 32 31 Public safety 125 125 130 115 108 114 111 112 109 103 Community development 35 34 32 31 26 35 33 45 45 38 Public works 56 56 54 52 46 51 35 33 34 30 Parks and recreation 208 208 208 208 191 207 232 234 186 160 Total 457 457 462 439 399 437 442 454 406 362 141 City of Baldwin Park Pledged- Revenue Coverage Tax Allocation Bonds Last Ten Fiscal Years Fiscal Year Net Ended Gross 20% set Available June 30 Revenue (1) Pass Thru's aside Revenue Principal & Interest Total Coverage 2003 $ 4,501,112 $ 1,738,084 $ 900,223 $ 1,862,805 $ 2,464,108 $ 2,464,108 0.76 2004 5,688,224 2,086,384 947,101 2,654,739 2,413,569 (3) 2,413,569 1.10 2005 6,147, 416 2,909,799 1,080,187 2,157, 430 2,336,926 2,336,926 0.92 2006 6,614,399 3,094,273 1,198, 627 2,321,499 2,436,218 2,436,218 0.95 2007 6,819,473 2,715,842 1,167, 479 2,936,152 2,432,372 2,432,372 1.21 2008 6,865,848 3,022,900 1,253,629 2,589,319 2,479,255 2,479,255 1.04 2009 7,154, 345 3,300,737 1,326,873 2,526,735 2,520,525 2,520,525 1.00 2010 7,050,343 2,793,546 1,312,141 2,944,656 2,524,443 2,524,443 1.17 2011 6,507,747 2,666,472 1,195,903 2,645,372 2,388,413 2,388,413 1.11 2012 3,665,710 2,247,042 647,371 771,298 2,395,605 2,395,605 0.32 Note: With the exception of the 2000 Merged Refunding Bonds, bonds were issued by the Authority to make loans to the agency to finance certain actuties of the agency in or benefiting the project areas, and secured by tax revenues. (1) San Gabriel River Tax Allocation Bonds Series 1998 refunded the 1990 Series A (2) The 2000 Tax Allocation Refunding Bonds merged redevelopment project refunded four project area debt service: (a) 1998 Housing Portion of San Gabriel River Tax Allocation Bonds. (b) West Ramona 1989 Tax Allocation Bonds. (c) 1994 Series A Sierra Vista Tax Allocation Bonds. (d) 1986 Delta Assessment District. (3) Sales Tax & Tax Allocation Refunding Bonds Series 2003 Puente Merced refunded 1990 Series B Bonds. Source: City of Baldwin Park Department of Finance 142 City of Baldwin Park Demographic Statistics Last Ten Fiscal Years Housing Per Capita School Rate of Fiscal units Personal Income enrollment unemployment Year Population (1) (2) (3) (4) 2003 79,596 (1) 17,677 17,270 8.1 2004 80,325 (1) 17,673 17,471 7.9 2005 80,953 (1) 17,747 17,220 5.4 2006 81,092 (1) 17,781 17,546 5.1 2007 81,146 (1) 17,781 19,187 6.3 2008 81,281 (1) 17,867 16,328 7.2 2009 81,445 (1) 17,908 17,514 15.7 2010 81,604 (1) 17,914 15,497 15.2 2011 75,664 (1) 17,736 15,202 14.8 2012 75,830 (1) 17,774 19,500 12.9 Source: (1) California Department of Finance (2) Unable to get Data on Personal Income (3) Baldwin Park Unified School District (4) State Employment Development Department. 143 Public Safety Arrests Parking Citations Public Works: Street Resurfacing(miles) Sewers new connections Average Daily Sewer treatment in 1000's GAL. Parks & Recreation Number of recreation classes Number of facility rentals City of Baldwin Park Operating Indicators by Function Last Ten Fiscal Years 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2,369 2,658 2,317 2,134 1,852 1,871 2,561 2,533 2,738 2,734 11,615 13,755 12,305 17,393 12,766 12,415 11,464 11,604 10,256 7,809 30 15 6 1 2 0 0 9 1.7 4 43 44 47 35 39 16 6 34 19 18 6149 6155 6191 6202 6200 6293 6300 6900 7320 7800 358 361 374 307 310 314 144 382 423 417 452 242 257 420 321 246 315 470 795 706 717 Police Stations Patrol Units Public Works Streets (Miles) Streetlights Traffic Signals Parks & Recreation Parks Swimming Pools Community Centers City of Baldwin Park Capital Assets Statistics by Function Last Ten Fiscal Years 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2 2 2 1 1 1 1 1 1 1 34 32 34 31 31 35 39 42 43 45 115 116 117 117 118 118 118 118 118 119 474 474 463 463 475 480 480 480 490 505 56 58 64 64 64 64 64 64 65 68 5 5 5 5 5 5 5 5 5 5 1 1 1 1 1 1 1 1 1 1 1 2 2 3 3 3 3 3 3 3 145 City of Baldwin Park Per Capita Cost - General Governmental Expenditures by Function Last Ten Fiscal Years Fiscal Community Year (1) General Public Public Services and Debt Ended Population Government Safety Works Capital Outlay Service Other Total 2003 79,596 $ 27.00 $ 124.00 $ 126.00 $ 133.00 $ 64.00 $ 10.00 $ 484.00 2004 80,325 33.00 143.00 142.00 162.00 58.00 14.00 552.00 2005 80,953 37.00 168.00 162.00 160.00 60.00 14.00 601.00 2006 81,092 58.00 189.00 152.00 138.00 64.00 27.00 628.00 2007 81,146 53.00 342.00 158.00 137.00 67.00 29.00 786.00 2008 81,281 49.00 202.00 95.00 170.00 75.00 38.00 629.00 2009 81,445 37.00 211.00 84.00 159.00 114.00 53.00 654.00 2010 81,604 35.00 209.00 72.00 112.00 95.00 132.00 655.00 2011 75,664 36.00 226.00 71.00 165.00 43.00 56.00 597.00 2012 75,830 42.00 238.00 96.00 160.00 68.00 51.00 654.00 Notes: Includes all Governmental Fund Types (General, Special Revenue, Capital Projects and Debt Service Funds), including the Baldwin Park Redevelopment Agency and the Baldwin Park Housing Authority. (1) Population figures were obtained from the State of California Department of Finance. Source: City of Baldwin Park Department of Finance, except where noted above. 146 City of Baldwin Park Construction Activity Last Ten Fiscal Years Calendar New year New construction and alterations value of ended Residential Commercial Industrial Total Demolitions Construction 2003 $ 21, 891, 556 $ 3,157, 493 $ 0 (1) $ 25, 049, 049 $ 375,650 $ 24, 673, 399 2004 18, 712, 708 12, 529, 452 0 (1) 31, 242,160 120,500 31,121, 660 2005 32, 312, 393 8,312,013 0 (1) 40, 624, 406 230,224 40, 394,182 2006 20, 402, 870 9,048,761 0 (1) 29, 451, 631 192,650 29, 258, 981 2007 22, 301,125 6,791,846 0 (1) 29, 092, 971 172,045 28, 920, 926 2008 10, 902, 293 5,911,824 555,555 17, 369, 672 334,403 17, 035, 269 2009 6,442,950 7,425,132 172,000 14, 040, 082 129,256 13, 910, 826 2010 8,046,015 5,871,449 203,800 14,121, 264 133,280 13, 987, 984 2011 9,559,585 5,748,912 0 15, 557, 445 251,948 15, 305, 497 2012 10, 783, 927 4,307,933 83,000 15,174, 860 172,610 15, 002, 250 Note (1): The Building Division streamlined the monthly report format and began combining commercial & industrial occupancies as of September 2001. Source: City of Baldwin Park Department of Community Development. 147 City of Baldwin Park Ten Principal Employers Disclaimer: The City of Baldwin Park makes no claims concerning the accuracy of data provided nor assumes any liability resulting from the use of information herein. Sources: Base on HDL Report of 2009 Principal Employers 148 Number of Employer Business Type Employees Baldwin School Unified School District School District 1,975 Baldwin Park City Hall Government 454 Walmart Supercenter Retail 350 Durham School Services Transportion 301 Esther Snyder Community Center Government 300 LA Department of Public Health Government 300 Los Angeles County Department of Parks Government 300 Morgan Park Government 300 Waste Management Inc Waste Disposal 300 Target Retai 1 200 Total Top Ten Employers 4,780 Disclaimer: The City of Baldwin Park makes no claims concerning the accuracy of data provided nor assumes any liability resulting from the use of information herein. Sources: Base on HDL Report of 2009 Principal Employers 148 SUBJECT: Resolution No. 2013-003 and Resolution SA 2013-001 in regards to a loan from the City of Baldwin park to the Successor Agency for the payment of a portion of the Fiscal Year 2013-2014 Enforceable Obligations The purpose of this report is to request consideration of Resolutions approving a loan ("Loan") from the City of Baldwin Park to the Successor Agency ("Successor Agency") up to $250,000 in order to provide the necessary funds to pay a portion of Fiscal Year 2013-2014 enforceable obligations of the Successor Agency. Timing of Property Tax Revenues Prior to being dissolved, the Successor Agency received property tax (tax increment monies) on a monthly basis (except for September and October) and was able to pay its debt service requirements on a timely basis. The Successor Agency was able to pool available cash amongst the project areas for the debt service and would reimburse itself as the monies came in throughout the year. Per ABx1 26, the Successor Agency will only receive property taxes every six months. The Agency received its first disbursement on June 1, 2012; it was suppose to cover monies due from February to May 2012; however, the amount received was lower than expected and the Successor Agency did not receive sufficient funds to cover all of the obligations as listed on the approved Recognized Obligation Payment Schedule (ROPS). Due to the insufficient monies received and the timing differences in the receipt of future revenues (property tax revenues from June to December 2012 will not be received until January 2013), the Successor Agency will not have enough funds to pay for its enforceable obligations on a monthly basis. Approval of City Loan to Successor Agency February 20, 2013 Page 2 of 4 fro". im As noted above, because of the timing of anticipated revenues, the Successor Agency does not have enough cash on a monthly basis to meet its enforceable obligations. If approved by the Oversight Board, payments will be made by the Successor Agency from future property taxes when there are enounh property taxes available for .--..e reimbursement. It is recommended the City Council and the Successor Agency Governing Body adopt the following Resolutions entitled: 1. Resolution No. 2013-003: "A RESOLUTION • THE CITY • B• LDWIN PAR PROVIDING A LOAN TO THE SUCCESSOR AGENCY TO THE COMMUNIT DEVELOPMENT COMMISION TO PAY A PORTION OF THE FISCAL YEA 2013-2014 ENFORCEABLE OBLIGATIONS", and; -1 1) Resolution No. 2013-003 2) Resolution No. SA 2013-001 �; w '- • • 1 It 011 k I I I • ki 10 L#1 will " 91 1 1 l, 11!11111`11161�lm 1 • . * : . • WHEREAS, On May 2, 2012, the Successor Agency to the Baldwin Park Community Development Commission (the "Successor Agency„) approved the Fiscal Year (FY) 2012 -2013 Administrative Budget and on May 8, 2012, the Oversight Board approved the Administrative Budget for FY 2012 -2013; and WHEREAS, On May 8, 2012, the second Recognized Obligation Payment Schedule (ROPS) for the Successor Agency for the period of June 30, 2012 through December 31, 2012 was adopted by the Oversight Board; and WHEREAS, AB 1484 Section 34173(h) of the Health and Safety Code authorizes the Successor Agency to borrow money or accept grants for administrative costs, enforceable obligations, or project - related expenses at the city's discretion, but the receipt and use of these funds shall be reflected on the Recognized Obligation Payment Schedule or the administrative budget and therefore are subject to the oversight and approval of the oversight board. An enforceable obligation shall be deemed to be created for the repayment of those loans; and WHEREAS, due to timing issues, the Successor Agency is requiring a loan from the City of Baldwin Park to meet its FY 2013 -2014 enforceable obligations; and WHEREAS, the Fiscal Year 2013 -2014 Loan Agreement documenting such loan is attached hereto as Exhibit "A" and by this reference incorporated herein (the "Loan Agreement ") NOW, THEREFORE, BE IT HEREBY RESOLVED, DETERMINED AND ORDERED BY THE CITY OF BALDWIN PARK AS FOLLOWS: SECTION 1. The City agrees to loan the Successor Agency up to $250,000 which is the amount approved in the Administrative Budget by the Successor Agency and the Oversight Board, to cover a portion of the Enforceable Obligations for 2013- 2014; SECTION 2. The Successor Agency agrees to repay the loan from property tax received from the County of Los Angeles by June 30, 2014, or as soon as enough property tax monies are made available to the Successor Agency. SECTION 3. The Successor Agency agrees to pay interest to the City of Baldwin Park per annum at rate equal to the California Local Agency Investment Fund (LAIF) annual rate SECTION 4. The Chief Executive Officer is hereby authorized to execute the Loan Agreement attached hereto as Exhibit "A" and all necessary documents to carry out the purpose and effect of this resolution. rl-r A -r- Or- 1, AS IA I o I /A I rZ r UMLIFORMINI/A 1, Alejandra Avila, Secretary of the Successor Agency to the Community Development Commission, do hereby certify that the foregoing resolution was duly and regularly approved and adopted by the Successor Agency at a regular meting thereof, held on the 20th day of February, 2013. MI I GJIWAMIMMO�� THIS AGREEMENT is entered into effective February 20, 2013 by and between the City of Baldwin Park, municipal corporation, (the "City "), and the Successor Agency to the Community Development Commission ( "Successor Agency "), a public body, corporate and politic (the "Commission "). NAMIJIM WHEREAS AB 14RA Czrtion - IA17gthl of the Hginith nnel Cafetee (nr1® niifh ri� ®v - _ -- the Successor Agency to borrow money or accept grants for administrative costs, enforceable obligations, or project - related expenses at the city's discretion, but the receipt and use of these funds shall be reflected on the Recognized Obligation Payment Schedule or the administrative budget and therefore are subject to the oversight and approval of the oversight board. An enforceable obligation shall be deemed to be created for the repayment of those loans. NOW, THEREFORE, in consideration of the foregoing and the mutual covenants contained herein, the parties hereto agree as follows: COVENANTS SECTION 1. Amount of Loan. The City and Successor Agency acknowledge the City will loan the Successor Agency up to $250,000 to cover the administration cost for fiscal year 2013 -14, in order to allow the Successor Agency to wind down the affairs of the Successor Agency and pay its enforceable obligations. SECTION 2. Disbursement of funds. The City acknowledges that it will disburse the Loan as requested by the Successor Agency during the fiscal year 2013 -14. The Successor Agency will use such proceeds only for the purposes provided for in the Administrative Budget and /or ROPS adopted by both the Successor Agency and the Oversight Agency. SECTION 3. Interest. The Successor Agency agrees to pay the City interest per annum at rate equal to the California Local Agency Investment Fund (LAIF) annual rate. 1 SECTION 4. Repayment. The Successor Agency agrees to repay the Loan from monies disbursed by the County of Angeles from the Redevelopment Property Tax Trust Fund (RPTTF) by June 30, 2014, or as soon as enough of such monies are made available to the Successor Agency. City of Baldwin Park M 0 Vijay Singhal. Chief Executive Officer IN Successor Agency to the City of Baldwin Park A: Vijay Singhal, Executive Director Resolution NO. SA 2013-001 A RESOLUTION OF THE BALDWIN PARK SUCCESSOR AGENCY OF THE COMMUNITY DEVELOPMENT COMMISSION ACCEPTING A LOAN FROM THE CITY OF BALD IN PARK TO PAY A PORTION OF THE FISCAL YEAR 2013 -2014 ENFORCEABLE OBLIGATIONS WHEREAS, On May 2, 2012, the Successor Agency to the Baldwin Park Community Development Commission (the "Successor Agency„) approved the Fiscal Year (FY) 2012 -2013 Administrative Budget and on May 8, 2012, the Oversight Board approved the Administrative Budget for FY 2012 -2013; and WHEREAS, On May 8, 2012, the second Recognized Obligation Payment Schedule (ROPS) for the Successor Agency for the period of June 30, 2012 through December 31, 210112 was adopted by the Oversight Board; and WHEREAS, AB 1484 Section 34173(h) of the Health and Safety Code authorizes the Successor Agency to borrow money or accept grants for administrative costs, enforceable obligations, or project - related expenses at the city's discretion, but the receipt and use of these funds shall be reflected on the Recognized Obligation Payment Schedule or the administrative budget and therefore are subject to the oversight and approval of the oversight board. An enforceable obligation shall be deemed to be created for the repayment of those loans; and WHEREAS, due to timing issues, the Successor Agency is requiring a loan from the City of Baldwin Park to meet its FY 2013 -2014 enforceable obligations; and WHEREAS, the Fiscal Year 2013 -2014 Loan Agreement documenting such loan is attached hereto as Exhibit "A" and by this reference incorporated herein (the "Loan Agreement ") NOW, THEREFORE, BE IT HEREBY RESOLVED, DETERMINED AND ORDERED BY THE SUCCESSOR AGENCY OF THE COMMUNITY DEVELOPMENT COMMISSION AS FOLLOWS: SECTION 1. The City agrees to loan the Successor Agency up to $250,000 which is the amount approved in the Administrative Budget by the Successor Agency and the Oversight Board, to cover a portion of the Enforceable Obligations for 2013- 2014; SECTION 2. The Successor Agency agrees to repay the loan from property tax received from the County of Los Angeles by June 30, 2014, or as soon as enough property tax monies are made available to the Successor Agency. SECTION 3. The Successor Agency agrees to pay interest to the City of Baldwin Park per annum at rate equal to the California Local Agency Investment Fund (LAIF) annual rate SECTION 4. The Executive Director is hereby authorized to execute the Lo-1 Agreement attached hereto as Exhibit "A" and all necessary documents to carry out tl,'" purpose • effect of - • • TRIP FE ! R PIN l 1, Alejandra Avila, Secretary of the Successor Agency to the Communi" Development C• • •# hereby certify the foregoing resolution was duly an • regularly approved and adopted by the Successor Agency at a regular meting there held on the 20th day of February, 2013. •,►•A" � .. IX•T1kF_[CI0:44ky,1':4►1� THIS AGREEMENT is entered into effective February 20, 2013 by and between the City of Baldwin Park, municipal corporation, (the "City "), and the Successor Agency to the Community Development Commission ( "Successor Agency "), a public body, corporate and politic (the "Commission "). WHEPEAS AB 1AAA ertinn gA17 *11h\ of the Health and of ®tai ('nr#� a�ifhnri�� v —E..) -i s ssv...v s e-v0 ows the Successor Agency to borrow money or accept grants for administrative costs, enforceable obligations, or project - related expenses at the city's discretion, but the receipt and use of these funds shall be reflected on the Recognized Obligation Payment Schedule or the administrative budget and therefore are subject to the oversight and approval of the oversight board. An enforceable obligation shall be deemed to be created for the repayment of those loans. NOW, THEREFORE, in consideration of the foregoing and the mutual covenants contained herein, the parties hereto agree as follows: SECTION 1. Amount of Loan. The City and Successor Agency acknowledge the City will loan the Successor Agency up to $250,000 to cover the administration cost for fiscal year 2013 -14, in order to allow the Successor Agency to wind down the affairs of the Successor Agency and pay its enforceable obligations. SECTION 2. Disbursement of funds. The City acknowledges that it will disburse the Loan as requested by the Successor Agency during the fiscal year 2013 -14. The Successor Agency will use such proceeds only for the purposes provided for in the Administrative Budget and /or ROPS adopted by both the Successor Agency and the Oversight Agency. SECTION 3. Interest. The Successor Agency agrees to pay the City interest per annum at rate equal to the California Local Agency Investment Fund (LAIF) annual rate. 10 SECTION 4. Repayment. The Successor Agency agrees to repay the Loan from monies disbursed by the County of Angeles from the Redevelopment Property Tax Trust Fund (RPTTF) by June 30, 2014, or as soon as enough of such monies are made available to the Successor Agency. City of Baldwin Park 0 Successor Agency to the City of Baldwin Park By: Vijay Singhal, Chief Executive Officer Vijay Singhal, Executive Director �. 1111111WIIIIIIIWI ITEM NO. r SUBJECT: Treasurer'- Report: December 2012 UP= "s The purpose of this report is to provide the Treasurer's Report for December 2012. BACKGROUND /DISCUSSION The Treasurer's Report lists all cash for the City (which includes the Baldwin Park Financing Authority), the Housing Authority, and the Successor Agency to the Community Development Commission (CDC). The CDC was eliminated effective February 1, 2012 and the City is now the Successor Agency; a new bank account is used in order to track its transactions separately. Any amounts reflected for the CDC are amounts set aside for outstanding checks that had not cleared as of the elimination date. The report separates cash into the following three sections: • State of California Local Agency Investment Fund (LAIF) — this is where the majority of the cash is held. City cash, which accounts for the largest portion includes monies from the General Fund and all other restricted funds known as Special Funds. Money is kept in LAIF until it needs to be transferred to cover warrants (payments to vendors, contractors, etc.,), payroll, or to pay the various bond payments. • Fiscal Agent Funds - these amounts represent monies held by the various bond holders that are restricted and which have been set aside for future bond payments. • Cash- this section provides the cash balances in the various checking accounts the City uses to pay its on-going payments. The cash balances fluctuate during the year due to the timing of large payments, such as interest and principal for bonds, and due to when the City receives its major sources of revenues (such as sales tax and property tax) in December, January and May of each year. Treasurer's Report: December 2012 Page 2 None Staff recommends that the City Council receive and file the December 2012 Treasurer's Report. December 2012 Treasurer's Report CITY OF BALDWIN PARK TREASURER'S REPORT December 31, 2012 ESTIMATED INVESTMENT INTEREST PURCHASE MATURITY PAR CURRENT BOOK MARKET DESCRIPTION RATE DATE DATE VALUE PRINCIPAL VALUE VALUE State of California Local 23,687,383.95 23,687,383.95 23,687,38195 Agency Investment Fund Varies 67,740.40 67,740.40 City 0.33% Varies Housing Authority 0.33% Varies Fiscal Agent Funds - City Varies Varies Fiscal Agent Funds - Successc Varies Varies Varies 23,687,383.95 23,687,383.95 23,687,38195 23,687,383.95 Varies 67,740.40 67,740.40 67,740.40 67,740.40 23,755,124.35 23,755,124.35 23,755,124.35 23,755,124.35 Varies 2,049,417.23 2,049,417.23 2,049,417.23 2,049,417.23 Varies 2,621,270.27 2,621,270.27 2,621,270.27 2,621,270.27 $ 28,425,811.85 $ 28,425,811.85 4,670,687.50 $ 28,425,811.85 Total Investments $ 28,425,811.85 Cash City Checking 5,293,242.44 City Miscellaneous Cash 174,614.56 Comm. Develop. Comm. 6,397.92 Successor Agency 33,009.60 Housing Authority 241,601.81 Financing Authority 0.00 Total Cash 5,748,866.33 Total Cash and Investments $ 34,174,678.18 Schedule of Cash and Investments includes all financial assets as included in the Comprehensive Annual Financial Report. There was no investment maturity /purchase transaction made for the month of December 2012 and several deposits /withdrawals were made with the Local Agency Investment Fund. In compliance with the California Government Code Section 53646 et seq., I hereby certify that sufficient investment liquidity and anticipated revenues are available to meet the City's expenditure requirements for the next six months that all investments are in compliance to the City's Statement of Investment Policy. Approved by: Rose Tam Assistant Accounting Manager Im I9T_i 9 1 • I 111 11 b • TO THE COMMUNITY DEVELOPMENT COMMISSIM COUNCIL AGENDA OF OF 1 WIN PARK STAFF REPORT ITEM NO.-----[__ Baldwin Honorable Chair and Board Members of the Successor Agency to the Dissolved Community Development Commission of the City of Vijay Singhal, Chief Executive Offii 14A) for the period from July 1, 2013 through December 31, 2013 and Administrative Budget for rY 2013 -14 by the City Council as (Q A_!_�+i'i'�®i2 n_ 4�r1er $ +l.r i°.._ �. �: ss .. Agency +r_ +4� ^_ -°y' .4.m G-o �erniii4g. Body $ii Uv%, Su-C raisSoa �YCgenc jf o he &C 0rni0, ui i1 Ly Development Commission lall 7 Zs>`;'i l To adopt the Recognized Obligation Payment Schedule (BOPS 13 -14A) for the period from July 1, 2013 through December 31, 2013. This action would be taken by the City Council acting as the governing body of the Successor Agency to the Community Development Commission ( "CDC ") with respect to redevelopment agency matters. BACKGROUND /DISCUSSION Assembly Bill X1 26 ( "AB 26 ") was drafted with recognition that redevelopment agencies had a variety of debts and obligations that still must be met in order to avoid causing harm to the persons to whom those debts and obligations are owed. Successor agencies are supposed to receive tax revenues from the country auditors in order to ensure those obligations, referred to in AB 26 as "enforceable obligations," will be met. In order to enable the County of Los Angeles to determine how much tax revenue a successor agency needs to meet its enforceable obligations; AB 26 requires the preparation of a series of schedules of enforceable obligations. The first two schedules, the Enforceable Obligation Payment Schedule ( "EOPS ") and the Preliminary Draft Recognized Obligation Payment Schedule ( "PDROPS ") were approved by the Community Development Commission (Commission) prior to its dissolution. Those schedules formed the basis for the preparation of the first schedule previously approved by the City Council, as the governing body of the successor agency (Successor Agency), the Recognized Obligation Payment Schedule ( "ROPS "). Approval of ROPS 13-14A February 20, 2013 Page 2 of 5 Controller for distribution to the taxing entities The Successor Agency must notify thp (ni nt Administrative Officer, the County Auditor Controller, and D• F. at the same time the Successor Agency submits a proposed action to the Oversight Board for approval. Also, all actions taken by the Oversight Board must be adopted • resolution. In addition, DOF has changed the format for the ROPS. Some • the requirements • the new ROPS format include: • Agencies report actual amounts paid from tax increment from the previous six- month period. • Enforceable obligations listed on one form regardless of funding source. No ,longer required to report monthly enforceable obligation estimates. Only six- month estimates are required. • Columns were added for the funding source and agreement termination dates * An "Notes" page has been added • Beginning with the ROPS for June through December 2013, DOF is distributing to each successor agency a ROPS that includes previously approved obligations and notations regarding previously disapproved obligations. The Successor Agency has complied with the requirements to prepare and approve a ROPS, including the Administrative Budget for 2013-14, submit it to the Oversight Board for approval and submit it to DOF, the State Controller's Office and the County Administrative Officer and Auditor-Controller for all periods through the January through June 2013 six-month period. The Successor Agency now has before it the ROPS 13-14A for the period of July 1, 2013 through December 31, 2013 for its consideration. (The Department of Finance has established a new naming convention for the ROPS, using the fiscal year and a letter indicating whether the ROPS is for the first or second six-month period within the fiscal year.) If approved, the ROPS 13-14A will be submitted to the Oversight Board for review at its meeting scheduled for Tuesday February 26, 2013 and at the same time to the County Administrative Officer, the County Auditor Controller, and the DOF. 0671g", 01111hy,12-IT-91 Under AB 26 and AB 1484, the City Council, as the successor agency, may only pay the enforceable obligations of the former Commission listed on the ROPS. The successor agency is prohibited by AB 26 and AB 1484 from entering into new obligations, except as necessary for administration of the successor agency and the winding up of the Commission's business. The intent of the ROPS is to identify all enforceable obligations of the former Commission payable before December 31, 2013. Nothing in the redevelopment dissolution legislation provides for the assumption of the Commission's obligations by the City. The liability of the successor agency for the CDC's obligations is limited to assets transferred to the Citv, as successor agency, from the Commission by operation of law. Per AB 26, the successor agency is to receive up to $250,000 for administrative costs per year from the Redevelopment Property Tax Trust Fund (RPTTF) distributed by the County of Los Angeles. However, at this time, it unknown how much RPTTF the successor agency will receive during the fiscal year 2013-14. RECOMMENDATION Staff recommends the City Council, as governing body of the Successor Agency: 1. Adopt the Recognized Obligation Payment Schedule (ROPS) 13-14A for the period of July 1, 2013 through December 31, 2013; and 2. Adopt the Successor Agency Administrative Budget for Fiscal Year 2013-14; and, 3. Direct staff to proceed with submitting the draft ROPS 13-14A for approval to the Oversight Board; and 4. Send the approved ROPS to the County Administrative Officer, County Auditor Controller, the State Controller and Department of Finance; and 5. Instruct staff to post the approved ROPS 13-14A on the City's website. ATTACHMENT 1. Recognized Obligation Payment Schedule (ROPS) 13-14A for July 1, 2013 -- December 31, 2013 2. 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Si usted desea la oportunidad de of its Agencies, you may do so during the PUBLIC dirigirse al Concilio o alguna de sus Agencias, podra hacerlo COMMUNICATIONS period noted on the agenda. Each durante el perfodo de Comentarios del Pdblico (Public person is allowed three (3) minutes speaking time. A Communications) anunciado en la agenda. A cada persona se Spanish speaking interpreter is available for your le permite hablar por tres (3) minutos. Hay un intdrprete para convenience. su conveniencia. 11 NC, essit .,.;C, .,i E`�'' �. �i .t f1 /a.. a C.+z t. r.i�' .X it ,.g. ..a zx. +da.A ?.. �. .. FINANCE AUTHORITY REGULAR MEETING — 7:00 PM Council Members: Marlen Garcia, Ricardo Pacheco, Susan Rubio, Mayor Pro Tern Monica Garcia 2nd Mayor Manuel Lozano PUBLIC COMMUNICATIONS Three (3) minute speaking time limit Tres (3) minutos sera el limite para hablar THIS IS THE TIME SET ASIDE TO ADDRESS THE COMMISSION No action may be taken on a matter unless it is listed on the agenda, or unless certain emergency or special circumstances exist. '1011e legislative body or its staff may: 1) Briefly respond 10 statement's made or questions asked by persons; or 2) Direct staff to investigate and /or schedule matters for consideration at a future meeting. [Government Code §54954.2] ESTE ES EL PERIODO DESIGNADO PARA DIRWIRSE AL COMIS16N No se podra tomar acci6n en algdn asunto a menos que sea incluido en la agenda, o a menos que exista a1g0na emergencia o circunstancia especial. El cuerpo legislativo y su personal podran: 1) Responder brevemente a declaraci6nes o preguntas hechas por personas; o 2) Dirigir personal a investigar y10 fijar asuntos para tomar en consideraci6n en juntas proximas. [Codigo de Gobierno §54954.2] CONSENT CALENDAR 1 TREASURER'S REPORT: DECEMBER 2012 Staff recommends that the City Council receive and file the December 2012 Treasurer's Report. 111 1, Alejandra Avila, City Clerk of the City of Baldwin Park hereby certify under penalty of perjury under the laws of the State of California that the foregoing agenda was posted on the City Hall bulletin board not less than 72 hours prior to the meeting. Dated this 14th day of February 2013. Aleiandra Avila City Clerk Finance Authority Agenda — FEBRUARY 20, 2013 PLEASE NOTE. Copies of staff reports and supporting documentation pertaining to each item on this agenda are available for public viewing and inspection at City Hall, 2°d Floor Lobby Area or at the Los Angeles County Public Library in the City of Baldwin Park. For further information regarding agenda items, please contact the office of the City Clerk at (626) 813 -5204 or via e -mail at rcaballero @baldwinpark.com. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the Public Works Department or Risk Management at (626) 960 -4011. Notification 48 hours prior to the meeting will enable staff to make reasonable arrangements to ensure accessibility to this meeting. (28 CFR 34.102.104 ADA TITLE Il) Finance Authority Agenda — FEBRUARY 20, 2013 -• I/ 1 l PURPOSE The purpose of this report is to provide the Treasurer's Report for December 2012. BACKGROUND /DISCUSSION The Treasurer's Report lists all cash for the City (which includes the Baldwin Park Financing Authority), the Housing Authority, and the Successor Agency to the Community Development Commission (CDC). The CDC was eliminated effective February 1, 2012 and the City is now the Successor Agency; a new bank account is used in order to track its transactions separately. Any amounts reflected for the CDC are amounts set aside for outstanding checks that had not cleared as of the elimination date. The report separates cash into the following three sections: • State of California Local Agency Investment Fund (LAIF) — this is where the majority of the cash is held. City cash, which accounts for the largest portion includes monies from the General Fund and all other restricted funds known as Special Funds. Money is kept in LAIF until it needs to be transferred to cover warrants (payments to vendors, contractors, etc.,), payroll, or to pay the various bond payments. • Fiscal Agent Funds - these amounts represent monies held by the various bond holders that are restricted and which have been set aside for future bond payments. • Cash- this section provides the cash balances in the various checking accounts the City uses to pay its on -going payments. The cash balances fluctuate during the year due to the timing of large payments, such as interest and principal for bonds, and due to when the City receives its major sources of revenues (such as sales tax and property tax) in December, January and May of each year. Treasurer's Report: December 2012 Page 2 2= • • '` Staff recommends that the City Council receive and file the December 2012 Treasurer's Report. ATTACHMENT December 2012 Treasurer's Report CITY OF BALDWIN PARK TREASURER'S REPORT December 31, 2012 ca TuMri Tcv INVESTMENT INTEREST PURCHASE MATURITY PAR CURRENT BOOK MARKET DESCRIPTION RATE DATE DATE VALUE PRINCIPAL VALUE VALUE State of California Local 23,687,383.95 23,687,383.95 67,740.40 67,740.40 Agency Investment Fund 67,740.40 23,755,124.35 23,755,124.35 23 ,755,124.35 City 0.33% Varies Varies Housing Authority 0.33% Varies Varies Fiscal Agent Funds - City Varies Varies Varies Fiscal Agent Funds - Successc Varies Varies Varies 23,687,383.95 23,687,383.95 23,687,383.95 23,687,383.95 67,740.40 67,740.40 67,740.40 67,740.40 23,755,124.35 23,755,124.35 23 ,755,124.35 23,755,124.35 2,049,417.23 2,049,417.23 2,049,417.23 2,049,417.23 2,621,270.27 2,621,270.27 2,621,270.27 2,621,270.27 $ 28,425,811.85 $ 28,425,811.85 670,687.5T $ 28,425,811.85 Total Investments $ 28,425,811.85 Cash City Checking 5,293,242.44 City Miscellaneous Cash 174,614.56 Comm. Develop. Comm. 6,397.92 Successor Agency 33,0009.60 Housing Authority 241,601.81 Financing Authority 0.00 Total Cash 5,748,866.33 Total Cash and Investments $ 34,174,678.18 Schedule of Cash and Investments includes all financial assets as included in the Comprehensive Annual Financial Report. There was no investment maturity /purchase transaction made for the month of December 2012 and several deposits /withdrawals were made with the Local Agency Investment Fund. In compliance with the California Government Code Section 53646 et seq., I hereby certify that sufficient investment liquidity and anticipated revenues are available to meet the City's expenditure requirements for the next six months that all investments are in compliance to the City's Statement of Investment Policy. Approved by: TV 0�� Rose Tam Assistant Accounting Manager AGENDA BALDWIN PARK HOUSING AUTHORITY FEBRUARY 20, 2013 7:00 PM REGULAR MEETING COUNCIL CHAMBER 14403 E. PACIFIC AVENUE BALDWIN PARK, CA 91706 (626) 960-4011 BALDWIN P - K Manuel Lozano - Mayor Monica Garcia - Mayor Pro Tern Marlen Garcia - Council Member Ricardo Pacheco - Council Member Susan Rubio - Council Member PLEASE TURN OFF CELL PHONES AND PAGERS WHILE MEETING IS IN PROCESS POR FAVOR DEAPAGAR SUS TELEFONOS CELULARES Y BEEPERS DURANTE LA JUNTA PUBLIC COMMENTS COMENTARIOS DEL PUBLICO The public is encouraged to address the City Se invita al pdblico a dirigirse al Concilio o cualquiera Council or any of its Agencies listed on this agenda otra de sus Agencias nombradas en esta agenda, para on any matter posted on the agenda or on any other hablar sobre cualquier asunto publicado en la agenda o matter within its jurisdiction. If you wish to address cualquier tema que est6 bajo su jurisdicci6n. Si usted the City Council or any of its Agencies, you may do desea la oportunidad de dirigirse al Concilio o a1guna de so during the PUBLIC COMMUNICATIONS period sus Agencias, podrd hacerlo durante el perfodo de noted on the agenda. Each person is allowed three Comentarios del Pdblico (Public Communications) (3) minutes speaking time. A Spanish speaking anunciado en la agenda. A cada persona se le permite interpreter is available for your convenience. hablar por tres (3) minutes. Hay un int6rprete para su conveniencia. ti tr�bvt rf t 16"'55 1, ai-I to th"d d dis e "t A S C esS oz-v-" 111�01 , � al 'fzP'U Pacific, 3n',Y, "Jit""", HOUSING AUTHORITY REGULAR MEETING — 7:00 PM CALL TO ORDER ROLL CALL Council Members: Marlen Garcia, Ricardo Pacheco, Susan Rubio, Mayor Pro Tern Monica Garcia and Mayor Manuel Lozano PUBLIC COMMUNICATIONS Three (3) minute speaking time limit Tres (3) minutos sera el limite para hablar THIS IS THE TIME SET ASIDE TO ADDRESS THE COMMISSION No action may be taken on a matter unless it is listed on the agenda, or unless certain emergency or special circumstances exist. The legislative body or its staff may. 1) Briefly respond to statements made or auestions asked by persons; or 9) Direct staff to investigate andbr schedule matters for consideration at a future meeting. [Government Code §54954.21 ESTE ES EL PERIODO DESIGNADO PARA DIRIGIRSE AL COMIS16N No se podra tomar acci6n en algbn asunto a menos que sea incluido en la agenda, o a menos que exista algbna emergencia o circunstancia especial. El cueroo legislative y su personal podran: 1) Responder brevemente a declaraci6nes o preguntas hechas per personas; o 2) Dirigir personal a investigar y10 fijar asuntos para tomar en consideraci6n en juntas proximas. [Codigo de Gobierno §54954.2] CONSENT CALENDAR 1 TREASURER'S REPORT: DECEMBER 2012 Staff recommends that the City Council receive and file the December 2012 Treasurer's Report. ADJOURNMENT CERTIFICATION 1, Alejandra Avila, City Clerk of the City of Baldwin Park hereby certify under penalty of perjury under the laws of the State of California, that the foregoing agenda was posted on the City Hall bulletin board not less than 72 hours prior to the meeting. Dated this 14th day of February, 2013. 71? Alejandra Avila City Clerk Housing Authority Agenda — FEBRUARY 20, 2013 PLEASE NOTE: Copies of staff reports and supporting documentation pertaining to each item on this agenda are available for public viewing and inspection at City Hall, 2°d Floor Lobby Area or at the Los Angeles County Public Library in the City of Baldwin Park. For further information regarding agenda items, please contact the office of the City Clerk at (626) 813 -5204 or via e -mail at rcaballero@baldwinpark.com. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the Public Works Department or Risk Management at (626) 960 -4011. Notification 48 hours prior to the meeting will enable staff to make reasonable arrangements to ensure accessibility to this meeting. (28 CFR 34.102.104 ADA TITLE II) Housing Authority Agenda — FEBRUARY 20, 2013 HOUSING AUTHORITY sTAFF ll� A E W FEB 2 0 The purpose of this report is to provide the Treasurer's Report for December 2012. The Treasurer's Report lists all cash for the City (which includes the Baldwin Park Financing Authority), the Housing Authority, and the Successor Agency to the Community Development Commission (CDC). The CDC was eliminated effective February 1, 2012 and the City is now the Successor Agency; a new bank account is used in order to track its transactions separately. Any amounts reflected for the CDC are amounts set aside for outstanding checks that had not cleared as of the elimination date. The report separates cash into the following three sections: • State of California Local Agency Investment Fund (LAIF) — this is where the majority of the cash is held. City cash, which accounts for the largest portion includes monies from the General Fund and all other restricted funds known as Special Funds. Money is kept in LAIF until it needs to be transferred to cover warrants (payments to vendors, contractors, etc.,), payroll, or to pay the various bond payments. • Fiscal Agent Funds - these amounts represent monies held by the various bond holders that are restricted and which have been set aside for future bond payments. • Cash- this section provides the cash balances in the various checking accounts the City uses to pay its on -going payments. The cash balances fluctuate during the year due to the timing of large payments, such as interest and principal for bonds, and due to when the City receives its major sources of revenues (such as sales tax and property tax) in December, January and May of each year. Treasurer's Report: December 2012 Page 2 VI Staff recommends that the City Council receive and file the December 2012 Treasurer's Report. December 2012 Treasurer's Report CITY OF BALDWIN PARK TREASURER'S REPORT December 31, 2012 ESTIMATED INVESTMENT INTEREST PURCHASE MATURITY PAR CURRENT BOOK MARKET DESCRIPTION RATE DATE DATE VALUE PRINCIPAL VALUE VALUE State of California Local 23,687,383.95 23,687,383.95 67,740.40 67,740.40 Agency Investment Fund 67,740.40 23,755,124.35 23,755,124.35 23,755,124.35 City 0.33% Varies Varies Housing Authority 0.33% Varies Varies Fiscal Agent Funds - City Varies Varies Varies Fiscal Agent Funds - Successc Varies Varies Varies 23,687,383.95 23,687,383.95 23,687,383.95 23,687,383.95 67,740.40 67,740.40 67,740.40 67,740.40 23,755,124.35 23,755,124.35 23,755,124.35 23,755,124.35 2,049,417.23 2,049,417.23 2,049,417.23 2,049,417.23 2,621,270.27 2,621,270.27 2,621,270.27 2,621,270.27 $ 28,425,811.85 $ 28,425,811.85 4,670,687.50 $ 28,425,811.85 Total Investments $ 28,425,811.85 Cash City Checking 5,293,242.44 City Miscellaneous Cash 174,614.56 Comm. Develop. Comm. 6,397.92 Successor Agency 33,009.60 Housing Authority 241,601.81 Financing Authority 1-00 Total Cash 5,`148,666.33 Total Cash and Investments $ 34,174,678.18 Schedule of Cash and Investments includes all financial assets as included in the Comprehensive Annual Financial Report. There was no investment maturity /purchase transaction made for the month of December 2012 and several deposits/withdrawals were made with the Local Agency Investment Fund. In compliance with the California Government Code Section 53646 et seq., I hereby certify that sufficient investment liquidity and anticipated revenues are available to meet the City's expenditure requirements for the next six months that all investments are in compliance to the City's Statement of Investment Policy. Approved by: 1TV 21--� Rose Tam Assistant Accounting Manager