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  • CITY OF ALHAMBRA CALIFORNIA CALIFORNIA

    COMPREHENSIVE ANNUAL FINANCIAL REPORT

    FOR THE YEAR ENDED JUNE 30, 2012

  • On the Cover: Howard Street Townhomes Residential affordable townhome project at 534 West Howard Street to accommodate six low-income and two moderate-income households. The townhomes will be sold through the Citys first-time homebuyer program.

  • CITY OF ALHAMBRA,

    CALIFORNIA

    Comprehensive Annual Financial Report

    Year ended June 30, 2012

    (With Independent Auditors Report Thereon)

    Prepared by:

    Paul Espinoza, Director of Finance and Staff

  • CITY OF ALHAMBRA

    Comprehensive Annual Financial Report

    Table of Contents

    Page

    Introductory Section: Letter of Transmittal iv Officials of the City of Alhambra ix Organizational Chart x GFOA Certificate of Achievement for Excellence in Financial Reporting xi

    Financial Section:

    Independent Auditors Report 1

    Managements Discussion and Analysis 3 Basic Financial Statements:

    Government-Wide Financial Statements: Statement of Net Assets 15 Statement of Activities 16

    Fund Financial Statements: Balance Sheet Governmental Funds 17 Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental

    Funds 19 Statement of Revenues, Expenditures, and Changes in Fund Balances Budget and

    Actual: General Fund 21 Community Development Block Grant Special Revenue Fund 24 Home and Rental Rehabilitation Grant Special Revenue Fund 25

    Statement of Net Assets Proprietary Funds 26 Statement of Revenues, Expenses, and Changes in Fund Net Assets Proprietary

    Funds 27 Statement of Cash Flows Proprietary Funds 28

    Statement of Fiduciary Net Assets 30

    Notes to the Basic Financial Statements 32

    Required Supplementary Information (Unaudited): Schedule of Funding Progress of the Citys Defined Benefit Pension Plan 82 Schedule of Funding Progress of the Citys Health Subsidy Pension Plan 83 Schedule of Funding Progress of the Citys Other Post-Employment Benefit Plans 83

    i

  • CITY OF ALHAMBRA

    Table of Contents, Continued

    Page

    Combining and Individual Fund Statements and Schedules:

    Other Governmental Funds: Combining Balance Sheet Other Governmental Funds 84 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances

    Other Governmental Funds 85 Combining Balance Sheet Other Special Revenue Funds 86

    Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Deficits) Other Special Revenue Funds 88

    Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Other Special Revenue Funds:

    Law Enforcement Fund 90 TDA Bikeway Fund 91 State Gas Tax Fund 92 Proposition A Transportation Fund 93 Proposition C Transportation Fund 94 Measure R Fund 95 Air Quality Fund 96 Lighting and Landscape Maintenance Fund 97 Police Facility Assessment Fund 98 Asset Forfeiture Fund 99 Transportation Capital Improvements Fund 100 Alhambra Redevelopment Agency Low- and Moderate-Income Housing Fund 101

    Combining Balance Sheet Other Debt Service Funds 102 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances

    Other Debt Service Funds 103 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and

    Actual Other Debt Service Funds: Community Improvement Fund 104 Lighting and Sidewalk Construction Fund 105 Police Facility Fund 106 Alhambra Redevelopment Agency Tax Allocation Bond Fund 107

    ii

  • iii

    CITY OF ALHAMBRA

    Table of Contents, Continued

    Page

    Combining Balance Sheet Other Capital Projects Funds 108 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances

    Other Capital Projects Funds 109 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and

    Actual Other Capital Projects Funds: Capital Outlay Fund 110 Alhambra Redevelopment Agency Central Projects Fund 111 Alhambra Redevelopment Agency Industrial Projects Fund 112

    Internal Service Funds:

    Combining Statement of Net Assets (Deficits) Internal Service Funds 113 Combining Statement of Revenues, Expenses, and Changes in Net Assets (Deficits)

    Internal Service Funds 114 Combining Statement of Cash Flows Internal Service Funds 115

    Statistical Section (Not Covered by Independent Auditors Report)

    Net Assets by Component - Last Nine Fiscal Years 117 Changes in Net Assets - Last Nine Fiscal Years 118 Fund Balances of Governmental Funds - Last Nine Fiscal Years 120 Changes in Fund Balances of Governmental Funds - Last Nine Fiscal Years 121 Assessed Value and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years 122 Direct and Overlapping Property Tax Rates - Current Year and Nine Years Ago 123 Principal Property Tax Payers - Current Year and Nine Years Ago 124 Property Tax Levies and Collections - Last Ten Fiscal Years 125 Ratios of Outstanding Debt by Type - Last Ten Fiscal Years 126 Ratios of General Bonded Debt Outstanding - Last Ten Fiscal Years 127 Direct and Overlapping Debt 128 Legal Debt Margin Information - Last Ten Fiscal Years 130 Pledged Revenue Coverage - Last Ten Fiscal Years 131 Demographic and Economic Statistics 132 Principal Employers - Current Year and Nine Years Ago 133 Full-time Equivalent City Government Employees by Function/Program - Last Ten Fiscal Years 134 Operating Indicators by Function - Last Ten Fiscal Years 135 Capital Asset Statistics by Function - Last Ten Fiscal Years 136

  • Introductory Section

  • v

    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 governments 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 Citys separately issued Single Audit Report.

    Managements discussion and analysis (MD&A) immediately follows the independent auditors report and provides a narrative introduction, overview, and analysis of the basic financial statements. MD&A complement this letter of transmittal and should be read in conjunction with it.

    Profile of the City of Alhambra

    The City of Alhambra was incorporated on July 11, 1903 and became the third city in the state to adopt by charter the Council-Manager form of government. Council members are nominated by district and elected at large for four-year terms at elections held in even numbered years. The City is located eight miles east of downtown Los Angeles and shares common boundaries with the cities of South Pasadena and San Marino to the north, San Gabriel to the east, Monterey Park to the south, and Los Angeles to the west.

    Alhambra occupies 7.69 square miles and generally has been fully developed since the 1960s. Private development and higher densities have increased the population from 54,800 in 1960 to 89,501 in 2010. The City is diversified with single family and multiple family housing development, commercial development, and significant industrial development.

    The City provides a full range of municipal services. Services provided include police, fire, street maintenance and improvements, water and storm drains, recreation, library, public improvements, planning zoning, and general administrative and support services.

    Economic Condition and Outlook

    Local Economy. The City of Alhambras economic base is a combination of commercial and light industrial business with over 8300 active businesses located in the City generating over $1 billion in taxable sales in 2011-2012. Approximately 28% of that amount is from Auto Row which currently has 10 dealers and 13 different makes of automobiles. Other major businesses include Costco, Kohls, Home Depot, Office Depot, Ross Dress For Less, Staples, Target, Smart and Final, and Toys R Us. The renaissance of downtown Alhambra includes the 14 screen Alhambra Renaissance Cineplex with adjacent parking structure. The Cineplex includes stadium seating, a 20,000 square foot public plaza, and 15,000 square feet of retail/restaurant space located at the northeast corner of Main Street and Garfield Avenue. Cineplex eating establishments include Applebees Grill, Panda Express and Menchies Frozen Yogurt, and GrillEm All, along with many other nearby restaurants. The Cineplex Parking Structure is a five-level 252,000 square foot structure with 811 parking spaces.

    Alhambras economic condition generally reflects the overall economic condition of the Los Angeles County region. The recession which started in December 2007 has impacted General Fund revenues. In addition to the recession, in January 2011, the California Supreme Court upheld AB1X 26 calling for the dissolution of redevelopment agencies in the state. Pursuant to that ruling, the Alhambra Redevelopment Agency ceased to exist as of February 1, 2012. General Fund revenues collected and received for the fiscal year 2011-12 amounted to just above $54 million keeping in line with budget estimates, however, due to the dissolution of the Redevelopment Agency, the City was forced to remit a portion of its General Fund lease revenues ($1,044,732) to the Successor Agency (former Alhambra Redevelopment Agency). It is helpful to note that these lease revenues, lost due to AB1X 26, were not identified as funds to be used to