city of bell gardens, california june 30, 2012gfoa.net/cafr/coa2012/bellgardensca.pdfarnold m....

CITY OF BELL GARDENS, CALIFORNIA

COMPREHENSIVE ANNUAL FINANCIAL REPORT

JUNE 30, 2012

PREPARED BY:

FINANCE & ADMINISTRATIVE SERVICES DEPARTMENT

CITY OF BELL GARDENS


JUNE 30, 2012

TABLE OF CONTENTS Page Number INTRODUCTORY SECTION

Letter of Transmittal ............................................................................................................................ i City Officials ....................................................................................................................................... iv

Organization Chart............................................................................................................................. v GFOA Certificate of Achievement for Excellence in Financial Reporting ........................................... vi FINANCIAL SECTION Independent Auditors’ Report .................................................................................................................. 1 Management’s Discussion and Analysis .................................................................................................. 3 Basic Financial Statements: Government-Wide Financial Statements:

Statement of Net Assets ........................................................................................................... 11

Statement of Activities ............................................................................................................... 12 Fund Financial Statements: Balance Sheet - Governmental Funds ...................................................................................... 14 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets .............................................................. 15 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds ..................................................................................... 16 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities ................................................................................................................................ 17

Budgetary Comparison Statement - General Fund .................................................................. 18 Statement of Net Assets - Proprietary Funds ........................................................................... 19 Statement of Revenues, Expenses and Changes in Fund Net Assets - Proprietary Funds ...................................................................................................................... 20

Statement of Cash Flows - Proprietary Funds .......................................................................... 21 Statement of Fiduciary Net Assets - Fiduciary Funds ............................................................... 22 Statement of Changes in Fiduciary Net Assets - Fiduciary Funds ........................................... 23 Notes to Financial Statements ............................................................................................................... 25



JUNE 30, 2012

TABLE OF CONTENTS

Page Number COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES

Combining Balance Sheet - Nonmajor Governmental Funds ......................................................... 60 Combining Statement of Revenues, Expenditures and

Changes in Fund Balances - Nonmajor Governmental Funds ........................................................ 68

Budgetary Comparison Schedules - Special Revenue Funds: Public Safety Augmentation ...................................................................................................... 75 COPS State (SLESF) ................................................................................................................ 76 State Gas Tax ........................................................................................................................... 77 Asset Forfeiture ......................................................................................................................... 78 Waste Management .................................................................................................................. 79 Community Development Block Grant ...................................................................................... 80 Proposition “A” .......................................................................................................................... 81 Proposition “C” .......................................................................................................................... 82 Air Quality Improvement............................................................................................................ 83 Recycling Grants ....................................................................................................................... 84 Academic Pursuit ...................................................................................................................... 85 Post Employment Benefits ........................................................................................................ 86 Measure R ................................................................................................................................. 87 ABC Grant ................................................................................................................................. 88 JAG Grants ............................................................................................................................... 89 2008 State Homeland Security Grant ....................................................................................... 90 COPS 2010 Grants ................................................................................................................... 91 Anson Ford Park ....................................................................................................................... 92

Budgetary Comparison Schedule – Capital Projects Funds:

Transportation Development Act .............................................................................................. 93 Capital Improvement Projects ................................................................................................... 94 Community Development Commission ..................................................................................... 95

Budgetary Comparison Schedule – Debt Service Funds:

Community Development Commission ..................................................................................... 96



JUNE 30, 2012

TABLE OF CONTENTS

Page Number STATISTICAL SECTION

Net Assets by Component ............................................................................................................... 99 Changes in Net Assets .................................................................................................................. 100 Program Revenues by Function/Program ..................................................................................... 102 Fund Balances - Governmental Funds .......................................................................................... 103 Changes in Fund Balances - Governmental Funds ...................................................................... 104 Tax Revenues by Source - Governmental Funds ......................................................................... 106 Assessed Value and Estimated Actual Value of Taxable Property ............................................... 107 Direct and Overlapping Property Tax Rates .................................................................................. 108 Principal Property Tax Payers ....................................................................................................... 109 Property Tax Levies and Collections ............................................................................................. 110 Taxable Sales by Category ........................................................................................................... 111 Direct and Overlapping Sales Tax Rates ...................................................................................... 112 Principal Sales Tax Remitters ....................................................................................................... 113 Ratios of Outstanding Debt by Type ............................................................................................. 114 Ratios of General Bonded Debt Outstanding ................................................................................ 115 Direct and Overlapping Governmental Activities Debt .................................................................. 116 Legal Debt Margin Information ...................................................................................................... 117 Pledged Revenue Coverage ......................................................................................................... 118 Demographic and Economic Statistics .......................................................................................... 119 Full-time-Equivalent City Government Employees by Function/Program ..................................... 120 Principal Employers ....................................................................................................................... 121 Operating Indicators by Function/Program .................................................................................... 122 Capital Asset Statistics by Function/Program ............................................................................... 123

THIS PAGE INTENTIONALLY LEFT BLANK

City Officials

City Council Pedro Aceituno Mayor Sergio Infanzon Mayor Pro Tem Daniel Crespo Councilmember Priscilla Flores Councilmember Jennifer Rodriguez Councilmember

Administration and Department Heads

Philip Wagner City Manager

John E. Oropeza

Assistant City Manager

Will Kaholokula Director of Finance & Administrative Services

Robert Barnes Chief of Police

Vacant

Director of Community Development

Pamela L. Wasserman Director of Recreation & Community Services

Chau Vu

Interim Director of Public Works

Rosalia A. Conde City Clerk

Arnold M. Alvarez-Glasman

City Attorney

Sid Mousavi City Engineer

City of Bell Gardens

iv

City of Bell Gardens

Organization Chart

Residents of Bell Gardens

Mayor and City Council

5 Elected Officials 1 Secretary

City Clerk 2 Full Time

City Manager

4 Full Time

City Attorney

Police

77 Full Time

Finance & Adm. Services

10 Full Time

Recreation & Community Services

12 Full Time

Public Works 30 Full Time

Community Development

13 Full Time

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INDEPENDENT AUDITORS’ REPORT To The Honorable Mayor and Members of the City Council The City of Bell Gardens, California We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the City of Bell Gardens, California, as of and for the year ended June 30, 2012, which collectively comprise the City’s basic financial statements as listed in the accompanying table of contents. These financial statements are the responsibility of the City of Bell Gardens’ 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 by the United States of America and the standards applicable to financial audits contained in the 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 opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the City of Bell Gardens, California, as of June 30, 2012, and the respective changes in financial position and cash flows, where applicable, and the respective budgetary comparison for the General Fund thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. We would like to draw the reader’s attention to Note 15 – “Successor Agency Trust for Assets of Former Community Development Commission”. The note provides information on the dissolution of the Community Development Commission and the new formed Successor Agency. In accordance with Government Auditing Standards, we have also issued our report dated January 24, 2013, on our consideration of the City of Bell Gardens’ internal control over financial reporting and our tests of its compliance with certain laws, regulations, contracts, grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on 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.

To The Honorable Mayor and Members of the City Council The City of Bell Gardens, California Accounting principles generally accepted in the United States of America require that the management's discussion and analysis as listed in the table of contents 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. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s financial statements as a whole. The introductory section, combining and individual nonmajor fund financial statements, schedules 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.

Brea, California January 24, 2013

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MANAGEMENT’S DISCUSSION AND ANALYSIS As management of the City of Bell Gardens (the City), we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City of Bell Gardens for the fiscal year ended June 30, 2012. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal and the City’s financial statements. FINANCIAL HIGHLIGHTS

� At June 30, 2012, the City’s net assets (excess of assets over liabilities) were $165.4 million (This includes $66.7 million in extraordinary gain reported in the government-wide financial statements of the governmental activities for the dissolution of the redevelopment agency). If we remove the extraordinary gain related to the redevelopment agency dissolution, the City’s net assets would be $98.7 million.

� During the fiscal year ended June 30, 2012, the City’s total net assets increased by $64.3 million

of which $66.7 million is represented by the extraordinary gain on dissolution of the redevelopment agency. If we remove this extraordinary gain, the City’s total net assets would have decreased by $2.4 million for fiscal year ended June 30, 2012.

OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements, which are comprised of three components: 1) Government-Wide Financial Statements, 2) Fund Financial Statements, and 3) Notes to the Basic Financial Statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-Wide Financial Statements The Government-Wide Financial Statements present the financial picture of the City and provide readers with a broad view of the City’s finances. These statements present governmental activities and business type activities separately and include all assets of the City as well as all liabilities. The Statement of Net Assets and the Statement of Activities report information about the City as a whole and about its activities. These statements include all assets and liabilities of the City using the full accrual basis of accounting, which is similar to the accounting used by most private-sector companies. All of the current year’s revenues and expenses are taken into account, regardless of when cash is received or paid. 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 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 year. All changes in net assets are reported as soon as the underlying event occurs, regardless of timing of related cash flows. In the Statement of Net Assets and the Statement of Activities, we separate the City activities as follows: Governmental Activities Most of the City’s basic services are reported in this category, including general government, public safety, public works, community development, and recreation. Property, business, hotel and sales taxes, club card fees, interest income, and state and federal grants finance these activities.

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Business-Type Activities The City charges a fee to customers to cover all or most of the costs of certain services it provides. The City’s water utility and golf course operations are reported as business-type activities. The government-wide financial statements include not only the City itself (known as the primary government), but also two legally separate entities, the Bell Gardens Community Development Commission and the Bell Gardens Financing Authority. The City is financially accountable for these entities and financial information for these blended component units are reported within the financial information presented for the primary government itself. Fund Financial Statements The fund financial statements provide detailed information about the City’s most significant funds – not the City as a whole. Some funds are required to be established by State law and bond covenants. However, management establishes many other funds to help it control and manage money for particular purposes or to show that it is meeting legal responsibilities for using certain taxes, grants, and other funding sources. The fund financial statements include statements for each of the three categories of activities – governmental, proprietary and fiduciary. The governmental activities are prepared using the current financial resources measurement focus and the modified accrual basis of accounting. The business-type activities are prepared using the economic resources measurement focus and the full accrual basis of accounting. The fiduciary activities are agency funds, which only report assets and liabilities and do not have a measurement focus. Governmental Funds—The 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 Funds Financial Statements focus on current financial resources, which emphasize near-term inflows and outflows of spendable resources as well as balances of spendable resources at the end of the fiscal year. This information is essential in evaluating the City’s near-term financial requirements. To better understand the City’s long-term and short-term requirements, it is useful to compare the City’s Governmental Fund Statements with the governmental activities in the Government-Wide Financial Statements. A reconciliation of the statements is provided for both the governmental fund balance sheet and the statement of revenues, expenditures and changes in fund balances to facilitate this comparison. The City of Bell Gardens maintains 29 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, and the Low and Moderate Housing fund which are reported as major funds. Data from the other 27 governmental funds are combined into a single, aggregate presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements in the 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. Proprietary Funds—The City maintains only one type of proprietary fund, the enterprise fund for its water utility and golf course operations. Enterprise funds are used to report the same functions presented as business-type activities in government-wide financial statements. Fiduciary Funds-As a result of the dissolution of the redevelopment agency, the city maintains a fiduciary fund, which consists of a private purpose trust fund used to account for the assets and liabilities of the former community development commission and the allocated revenue to pay estimated installment payments of enforceable obligations until the obligations of the former community development commission are paid in full and assets have been liquidated.

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Notes to the Basic Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the Government-Wide and Fund Financial Statements. The combining statements referred to earlier in connection with the non-major governmental funds and enterprise funds are presented immediately following the required supplementary information. GOVERNMENT-WIDE FINANCIAL ANALYSIS Statement of Net Assets At June 30, 2012, the City’s net assets (excess of assets over liabilities) were $165.4 million (This includes $66.7 million in extraordinary gain reported in the government-wide financial statements of the City for the dissolution of the redevelopment agency). If we remove the extraordinary gain related to the redevelopment agency dissolution, the City’s net assets would be $98.7 million. The following is the condensed Statement of Net Assets for the fiscal years ended June 30, 2012 and 2011.

Approximately $119 million (72%) of the City’s net assets consist of the City’s investment in capital assets such as land, buildings, machinery and equipment, less any related debt to acquire those assets that is still outstanding. These assets are used to provide services to the citizens of the City of Bell Gardens; therefore, they are not available for future spending. Although the City’s investment in 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 capital assets themselves cannot be used to liquidate these liabilities.

2011 2012 2011 2012 2011 2012

Current and other assets $ 35,914,168 $ 75,183,714 $ 806,334 $ 602,544 $ 36,720,502 $ 75,786,258Capital assets 109,372,619 108,124,534 7,337,699 7,961,175 116,710,318 116,085,709

Total Assets 145,286,787 183,308,248 8,144,033 8,563,719 153,430,820 191,871,967

Long-term liabilities outstanding 42,498,683 19,608,151 3,642,571 3,428,827 46,141,254 23,036,978Other liabilities 5,807,568 3,038,786 370,614 371,896 6,178,182 3,410,682

Total Liabilities 48,306,251 22,646,937 4,013,185 3,800,723 52,319,436 26,447,660

Net assets:Invested in Capital Assets Net of Related Debt 74,822,075 114,874,209 3,480,128 4,307,348 78,302,203 119,181,557 Restricted 17,354,065 6,518,912 399,355 416,340 17,753,420 6,935,252 Unrestricted 4,804,396 39,268,190 251,365 39,308 5,055,761 39,307,498

Total Net Assets $ 96,980,536 $ 160,661,311 $ 4,130,848 $ 4,762,996 $ 101,111,384 $ 165,424,307

TotalBusiness-type ActivitiesGovernmental Activities

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Statement of Activities The following is the condensed Statement of Activities and Changes in Net Assets for the fiscal years ended June 30, 2012 and 2011.

2011 2012 2011 2012 2011 2012Revenues:Program revenues:

Charges for services $ 1,651,510 $ 1,523,247 $ 1,401,856 $ 1,421,517 $ 3,053,366 $ 2,944,764Operating grants and contrib. 2,146,983 5,360,465 - - 2,146,983 5,360,465Capital grants and contrib. 1,839,711 2,563,187 - - 1,839,711 2,563,187

General revenues:Sales taxes 2,321,800 2,396,411 - - 2,321,800 2,396,411Transient occupancy taxes 221,374 238,104 - - 221,374 238,104Franchise taxes 2,568,428 2,594,078 - - 2,568,428 2,594,078Business license taxes 280,160 264,537 - - 280,160 264,537Property taxes 4,696,696 2,844,538 - - 4,696,696 2,844,538Other taxes 1,182,332 1,272,054 - - 1,182,332 1,272,054Motor Vehicle in Lieu 3,905,639 3,679,693 - - 3,905,639 3,679,693Use of money and property 3,281,827 3,888,527 8,664 27,996 3,290,491 3,916,523Club card taxes 9,695,632 9,353,531 - - 9,695,632 9,353,531

Extraordinary gain/(loss) ondissolution of redevelopment agencyNote 15) - 66,678,547 - - - 66,678,547Other 249,606 104,129 - - 249,606 104,129

Total Revenues 34,041,698 102,761,048 1,410,520 1,449,513 35,452,218 104,210,561

Expenses:General government 8,821,722 9,171,894 - - 8,821,722 9,171,894Public safety 12,393,794 12,740,622 - - 12,393,794 12,740,622Community development 2,241,756 2,408,181 - - 2,241,756 2,408,181Parks and recreation 2,838,313 2,647,386 - - 2,838,313 2,647,386Public works 10,146,753 10,178,663 - - 10,146,753 10,178,663Interest and fiscal charges 1,972,014 1,164,716 - - 1,972,014 1,164,716Water utility - - 1,532,393 1,344,353 1,532,393 1,344,353Golf course - - 216,584 241,823 216,584 241,823

Total Expenses 38,414,352 38,311,462 1,748,977 1,586,176 40,163,329 39,897,638

Increase (decrease) in net assets before transfers (4,372,654) 64,449,586 (338,457) (136,663) (4,711,111) 64,312,923 Transfers (243,372) (768,811) 243,372 768,811 - - Changes in Net Assets (4,616,026) 63,680,775 (95,085) 632,148 (4,711,111) 64,312,923

101,596,562 96,980,536 4,225,933 4,130,848 105,822,495 101,111,384Net assets - end of the year $ 96,980,536 $ 160,661,311 $ 4,130,848 $ 4,762,996 $ 101,111,384 $ 165,424,307

Governmental Activities Business-type Activities Total

Net assets - beginning of the year

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Governmental Activities The City’s net assets from governmental activities totaled $160.6 million. The cost of all governmental activities this year was $38.3 million. Overall, the City’s governmental program revenues were $9.4 million. The City paid for the remaining “public benefit” portion of governmental activities with $26.6 million in taxes (some of which could only be used for certain programs) and with other revenues, such as interest earnings and general entitlements. Revenue highlights:

� General Revenues increased by $68.7 million from the prior year, the majority of this relates to $66.6 million recognized as an Extraordinary gain on the dissolution of the redevelopment agency in the current fiscal year and an increase in operating contributions and grants of $3.2 million from the prior year. The increase in operating contributions and grants in the current year primarily relates to $2.7 million of deferred revenue being recognized for the Terra Bella construction project and the First-Time home buyers program recording $943k of deferred revenue in the current fiscal year.

� Card Club casino revenue decreased by $300k from the prior year; this follows the overall down-turn in the economy.

� Property taxes levied for general purpose decreased $1.9 million. This decrease is due to the dissolution of redevelopment agencies as the redevelopment agency is no longer included with governmental activities.

Expense highlights:

� Expenses remained consistent with prior year with an overall decrease of $100K. The individual departments maintained or slightly increased expenses compared to prior year through various cost minimizing/savings plans including; freezing positions, furlough days and employees being required to contribute a portion to their PERS retirement plans.

Business Type Activities

The City’s business-type activities net assets increased by $600k. Key elements of this increase are as follows: Revenue Highlights:

� Transfers to the Water Utility fund and the Golf Course fund increased by $525k compared to

prior year. � Total program revenue in the business-type activities increased by $39k. � Charges for services at the Golf Course increased by $7k from prior year, primarily due to

increases in golf league related revenue and general golf course revenue. � Charges for services related to the Water Utility fund increased by $12k from prior year, mainly

due to increases in lease of water rights revenue and water sales revenue. � Use of money and property revenue increased by $20k from prior year, mostly due to increases

in Water Utility fund interest on cash with fiscal agent and an increase in golf course rent & concessions.

Expense Highlights:

� Total expenses in the business-type activities decreased by $163k. This was made up of the Water Utility fund expense decreasing by $188k and the Golf Course fund expense increasing by $25k.

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� The primary decreases in the Water Utility fund expenses in comparison to prior year were related to decreases of $121k in Contractual Services, and $59k in the purchase of water.

� The key increase in expenses at the Golf Course was an increase of $26k in personnel services when compared to prior year.

FUND FINANCIAL STATEMENT ANALYSIS

The City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds The focus of the City’s governmental funds is to provide information on short-term inflows, outflows and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. As of the fiscal year ended June 30, 2012, the City’s governmental funds reported combined ending fund balance of $41.88 million, an increase of $40.33 million compared to the prior year balance of $1.54 million. This increase was primarily due to the dissolution of the Bell Gardens Redevelopment Agency effective February 1, 2012, pursuant to AB X1 26. As a result of the dissolution, the City recorded the $50.97 million dollar advance given to the former redevelopment agency as an asset in the current year and removed the corresponding liability of the same amount in the current year. Proprietary Funds The City’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. Factors concerning these funds have already been addressed in the discussion of Government-wide Financial Analysis of business-type activities. GENERAL FUND BUDGETARY HIGHLIGHTS The original adopted General fund budget for this fiscal year was $24.06 million and the final amended budget was $24.27 million. Budget amendments totaled less than 1% of the original budget. CAPITAL ASSETS AND DEBT ADMINISTRATION Capital Assets The City of Bell Gardens has $116.1 million invested in net capital assets, as compared to $116.7 million in the prior year. Net decrease in the capital assets is approximately $0.6 million.

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2011 2012 2011 2012 2011 2012

Land $ 69,022,714 $ 69,022,714 $ 1,011,000 $ 1,011,000 $ 70,033,714 $ 70,033,714 Buildings 10,224,115 9,707,310 - - 10,224,115 9,707,310 Equipment 1,213,899 973,745 4,384,837 5,063,119 5,598,736 6,036,864 Construction in Progress 2,665,779 1,661,065 429,802 394,136 3,095,581 2,055,201 Infrastructure 26,246,112 26,759,700 - - 26,246,112 26,759,700 Intangibles - - 1,512,060 1,492,920 1,512,060 1,492,920

Total $ 109,372,619 $ 108,124,534 $ 7,337,699 $ 7,961,175 $ 116,710,318 $ 116,085,709

Governmental Activities Business-Type Activities Totals

Capital Assets at Year-End

(Net of Depreciation)For the Year Ended June 30

The decrease was primarily due to the increase in accumulated depreciation of fixed assets for fiscal year 2011-12. For more detailed information, see note 6 to the financial statements.

Long-term Debt At year-end, the City had $23.7 million in long-term debts including other post-employment benefits obligation, certificates of participations and compensated absences, as compared to $48.5 million in prior year, a net decrease of $24.8 million during the fiscal year. The majority of this decrease relates to $26.1 million in indebtedness of the former Community Development Commission that was transferred to the Successor Agency. Please refer to Note 7 for further details on the City’s long-term liabilities.

2011 2012 2011 2012 2011 2012

Accrued Leave Payable 2,582,495$ 2,815,831$ -$ -$ 2,582,495$ 2,815,831$ Other post employment obligations 7,492,251 9,591,183 - - 7,492,251 9,591,183 CJPIA Retrospective Deposit Liability - 962,462 - 962,462 2003 Tax Allocation Bonds Project Area 1 5,720,000 - - 5,720,000 -

2003 Tax Allocation Bond Central City Project 8,145,000 - - 8,145,000 -

2005 Revenue Bond Series A Project Area 1 1,465,000 - - 1,465,000 -

2005 Revenue Bond Series A Central City Project 2,830,000 - - 2,830,000 -

Promissory Note- Bear Stearns 8,890,267 - - 8,890,267 - Promissory Note- County of LA 3,731,000 3,360,000 - - 3,731,000 3,360,000 2006 Certificates of Participation 3,510,000 3,430,000 - - 3,510,000 3,430,000 2004 Water Refunding Revenue Bonds 4,010,000 3,795,000 4,010,000 3,795,000

Unamortized bond premium 364,022 5,250 4,862 369,272 4,862 Unamortized bond discount (104,745) (40,325) (157,679) (146,035) (262,424) (186,360)

Total 44,625,290$ 20,119,151$ 3,857,571$ 3,653,827$ 48,482,861$ 23,772,978$

Governmental Activities Business-Type Activities Totals

Outstanding Long-Term DebtFor Fiscal Year Ended June 30

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ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS The City of Bell Gardens’ finances are dependent on the local, national and international economies. Even though over 42% of the City’s revenues is received from one local source, the widespread effect of a negative downturn in the economies will have an effect on the City’s finances. The fourth quarter forecast of 2012 completed by the UCLA Anderson School of Management, provided an outlook for the United States saying that Gross Domestic Product (GDP) will grow at less than a 2% annual rate through mid-2013. After that the forecast expects growth to pick up and exceed 3% for most of 2014 with housing activity leading the way. The forecast for California is in line with the national forecast, but with the passage of Proposition 30, there is some risk and potential for impact on the forecast for 2013 and 2014. In addition to the unstable economy, the State has continued to take local governments’ revenue to address their budget crisis. In June 2011, the Governor signed into law AB X1 26 to eliminate all redevelopment agencies. As of February 1, 2012 all redevelopment agencies were eliminated, the potential effect of the revenue loss as a result of this is still ongoing but at a minimum the City’s ability to address blight and revitalize the community has suffered. Although the outlook is not overwhelmingly positive, one item of note that is positive was in the case of the City of Alhambra vs. County of Los Angeles, Case No. S185457, the California Supreme Court ruled on November 19, 2012 that the County of Los Angeles has been overcharging its property tax administration fees (PTAF) to cities relating to the Vehicle License Fee (VLP) swap and “Triple Flip”. There is potential for the City to receive a settlement from L.A. County for approximately $303,000 for PTAF withheld in Fiscal Years 07-08 to 11-12 and possibly more funds for PTAF withheld in FY 06-07 and the 7 % interest. The parties must either settle or resolve their disagreement relative to the statute of limitations. The Operating Budget for fiscal year 2012-13 reflects the City’s commitment to foster steady, controlled growth and provide the highest level of service to the community within the City’s financial constraint and is consistent with the City Council’s goals and objectives. Questions or requests for information regarding the City of Bell Gardens’ 2012-13 budget should be sent to the Finance Department at the address below. OTHER INFORMATION 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 Bell Gardens for its Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June 30, 2011. The Certificate of Achievement is a national award recognizing conformance with the highest standards for preparation of state and local government financial reports. CONTACTING THE CITY’S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a general overview of the City of Bell Gardens’ finances and to show the City’s accountability for the money it receives. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the City’s Finance Department, at the City of Bell Gardens, 7100 Garfield Avenue, Bell Gardens, CA 90201.

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STATEMENT OF NET ASSETS

Governmental Business-TypeActivities Activities Total

Assets:Cash and investments 10,542,149$ 20,342$ 10,562,491$ Receivables:

Accounts 831,809 13,519 845,328 Notes and loans 8,643,396 - 8,643,396 Accrued interest 8,124 75 8,199

Advances to Successor Agency 50,969,615 - 50,969,615 Prepaid costs 1,402,937 - 1,402,937 Due from other governments 2,094,281 - 2,094,281 Deferred charges 46,438 152,268 198,706 Restricted assets:

Cash with fiscal agent 644,965 416,340 1,061,305 Capital assets not being depreciated 70,683,779 1,405,136 72,088,915 Capital assets, net of depreciation 37,440,755 6,556,039 43,996,794

Total Assets 183,308,248 8,563,719 191,871,967

Liabilities:Accounts payable 1,945,533 97,631 2,043,164 Accrued liabilities 412,109 1,807 413,916 Accrued interest 93,439 47,458 140,897 Unearned revenue 23,643 - 23,643 Deposits payable 53,062 - 53,062 Noncurrent liabilities: Due within one year 511,000 225,000 736,000 Due in more than one year 19,608,151 3,428,827 23,036,978

Total Liabilities 22,646,937 3,800,723 26,447,660

Net Assets:Invested in capital assets, net of related debt 114,874,209 4,307,348 119,181,557 Restricted for: Community development projects 564,315 - 564,315 Public safety 832,532 - 832,532 Public works 1,200,876 - 1,200,876 Debt service 3,921,189 416,340 4,337,529 Unrestricted 39,268,190 39,308 39,307,498

Total Net Assets 160,661,311$ 4,762,996$ 165,424,307$

JUNE 30, 2012

Primary Government

See Notes to Financial Statements 11


STATEMENT OF ACTIVITIESYEAR ENDED JUNE 30, 2012

Operating CapitalCharges for Contributions Contributions

Expenses Services and Grants and Grants

Functions/ProgramsPrimary Government:Governmental Activities:

General government 9,171,894$ 134,994$ 68,044$ -$ Public safety 12,740,622 705,874 887,917 253,155 Community development 2,408,181 - 2,935,678 1,014,251 Parks and recreation 2,647,386 313,946 79,794 - Public works 10,178,663 368,433 1,389,032 1,295,781 Interest on long-term debt 1,164,716 - - -

Total Governmental Activities 38,311,462 1,523,247 5,360,465 2,563,187

Business-Type Activities:Water 1,344,353 1,261,619 - - Golf Course 241,823 159,898 - -

Total Business-Type Activities 1,586,176 1,421,517 - -

Total Primary Government 39,897,638$ 2,944,764$ 5,360,465$ 2,563,187$

General Revenues:Taxes: Club card gross receipt tax Property taxes, levied for general purpose Transient occupancy taxes Sales taxes Franchise taxes Business licenses taxes Other taxesMotor vehicle in lieu - unrestrictedUse of money and propertyOtherTransfersExtraordinary gain/(loss) on dissolution of redevelopment agency (Note 15)

Total General Revenues, Transfers and Extraordinary Items

Change in Net Assets

Net Assets at Beginning of Year

Net Assets at End of Year

Program Revenues


Primary Government

Governmental Business-TypeActivities Activities Total

(8,968,856)$ -$ (8,968,856)$ (10,893,676) - (10,893,676)

1,541,748 - 1,541,748 (2,253,646) - (2,253,646) (7,125,417) - (7,125,417) (1,164,716) - (1,164,716)

(28,864,563) - (28,864,563)

- (82,734) (82,734) - (81,925) (81,925)

- (164,659) (164,659)

(28,864,563) (164,659) (29,029,222)

9,353,531 - 9,353,531 2,844,538 - 2,844,538

238,104 - 238,104 2,396,411 - 2,396,411 2,594,078 - 2,594,078

264,537 - 264,537 1,272,054 - 1,272,054 3,679,693 - 3,679,693 3,888,527 27,996 3,916,523

104,129 - 104,129 (768,811) 768,811 -

66,678,547 - 66,678,547

92,545,338 796,807 93,342,145

63,680,775 632,148 64,312,923

96,980,536 4,130,848 101,111,384

160,661,311$ 4,762,996$ 165,424,307$

Net (Expenses) Revenues and Changes in Net Assets



BALANCE SHEETGOVERNMENTAL FUNDS JUNE 30, 2012

Special Revenue Fund

Other TotalGovernmental Governmental

General Funds FundsAssets:Cash and investments 7,173,726$ -$ 3,368,423$ 10,542,149$ Receivables:

Accounts 762,040 - 69,769 831,809 Notes and loans 258,492 5,916,247 2,468,657 8,643,396 Accrued interest 7,706 - 418 8,124

Prepaid costs 1,402,937 - - 1,402,937 Due from other governments 917,122 - 1,177,159 2,094,281 Due from other funds 221,659 - - 221,659 Advances to Successor Agency 50,969,615 - - 50,969,615 Restricted assets:

Cash and investments with fiscal agents 644,965 - - 644,965

Total Assets 62,358,262$ 5,916,247$ 7,084,426$ 75,358,935$

Liabilities and Fund Balances:Liabilities:Accounts payable 666,533$ -$ 1,279,000$ 1,945,533$ Accrued liabilities 408,734 - 3,375 412,109 Deferred revenues 21,960,119 5,916,247 2,951,492 30,827,858 Unearned revenues - - 23,643 23,643 Deposits payable 53,062 - - 53,062 Due to other funds - - 221,659 221,659

Total Liabilities 23,088,448 5,916,247 4,479,169 33,483,864

Fund Balances: Nonspendable: Prepaid costs 1,402,937 - - 1,402,937 Advances to Successor Agency 29,660,434 - - 29,660,434 Restricted for: Community development projects - - 442,846 442,846 Public safety - - 832,532 832,532 Parks and recreation - - 121,469 121,469 Public works - - 1,177,422 1,177,422 Capital Projects - - 23,454 23,454 Committed to: Committed to contingencies 1,700,000 - - 1,700,000 Assigned to: Post employment benefits 3,690,612 - 324,016 4,014,628 Compensated absences 2,815,831 - - 2,815,831 Unassigned - - (316,482) (316,482)

Total Fund Balances 39,269,814 - 2,605,257 41,875,071

Total Liabilities and Fund Balances 62,358,262$ 5,916,247$ 7,084,426$ 75,358,935$

Low and Moderate Housing



RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDSTO THE STATEMENT OF NET ASSETSJUNE 30, 2012

Fund balances of governmental funds 41,875,071$

Amounts reported for governmental activities in the statement of net assets are different because:

Capital assets net of depreciation have not been included as financial resources in governmental fund activity. 108,124,534

Bond issuance cost is an expenditure in the governmental funds, but it is a deferred charge in the statement of net assets. 46,438

Long-term debt and compensated absences have not been included in the governmental fund activity:

2006 Certificates of Participation (3,430,000)$ Unamortized original issue discount 40,325 Notes Payable: County of Los Angeles - Section 108 (3,360,000) CJPIA General Liability Retrospective Payable (962,462) Compensated absences (2,815,831) (10,527,968)

Governmental funds report all other post-employment benefits contributions as expenditures. However, in the statement Statement of Net Assets, any excess or deficit of contribution over the Annual Required Contribution (ARC) is reported as an assets or liabilities. (9,591,183)

Accrued interest payable for the current portion of interest due on bonds has not been reported in the governmental funds. (93,439)

Some of the City's revenue will be collected after year-end, but are not available soon enough to pay for the current year period expenditures and, therefore are reported as deferred revenue in the governmental funds. 30,827,858

Net assets of governmental activities 160,661,311$



STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCESGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2012

Special Revenue Fund

Other TotalGovernmental Governmental

General Funds FundsRevenues:Taxes 4,484,567$ -$ 5,119,629$ 9,604,196$ Licenses and permits 246,684 - - 246,684 Intergovernmental 3,906,478 - 4,666,637 8,573,115 Club card fees 9,353,531 - - 9,353,531 Charges for services 307,159 - 268,306 575,465 Use of money and property 3,588,530 - 280,618 3,869,148 Fines and forfeitures 441,635 - 217,312 658,947 Contributions - - 15,000 15,000 Miscellaneous 155,239 - 149,025 304,264

Total Revenues 22,483,823 - 10,716,527 33,200,350

Expenditures:Current: General government 4,012,204 - 1,009,458 5,021,662 Public safety 11,685,330 - 909,563 12,594,893 Community development 591,667 - 1,838,075 2,429,742 Parks and recreation 2,430,171 - 184,480 2,614,651 Public works 3,066,857 - 4,845,139 7,911,996 Capital outlay 81,409 - 2,061,825 2,143,234 Debt service: Principal retirement 80,000 - 1,258,280 1,338,280 Interest and fiscal charges 161,038 - 1,402,662 1,563,700

Total Expenditures 22,108,676 - 13,509,482 35,618,158

Excess (Deficiency) of Revenues Over (Under) Expenditures 375,147 - (2,792,955) (2,417,808)

Other Financing Sources (Uses):Transfers in 380,621 - 1,117,312 1,497,933 Transfers out (1,528,951) - (737,793) (2,266,744)

Total Other Financing Sources (Uses) (1,148,330) - 379,519 (768,811)

Extraordinary gain/(loss) on dissolutionof redevelopment agency (Note 15) - - 43,519,044 43,519,044

Net Change in Fund Balances (773,183) - 41,105,608 40,332,425

Fund Balances:Beginning of year, as originally reported 40,042,997 - (38,500,351) 1,542,646

End of Year 39,269,814$ -$ 2,605,257$ 41,875,071$

Low and Moderate Housing



RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDSTO THE STATEMENT OF ACTIVITIESYEAR ENDED JUNE 30, 2012

Net change in fund balances - total governmental funds 40,332,425$

Amounts reported for governmental activities in the statement of activities aredifferent because:

Governmental funds report capital outlays as expenditures. However, in the statement of activities, the costs of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period.

Capital outlay 1,854,584$ Disposal of assets (143,567) Depreciation expense (2,846,855) (1,135,838)

The issuance of long-term debt provides financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net assets.

Repayment of long-term debt principal Tax allocation bonds 640,000 Revenue bonds 150,000 Certificates of participation 80,000 Notes payable 468,280 Bond discount/premium amortization 38,000 Bond issuance cost amortization (9,412) CJPIA retrospective deposit liability (962,462) 404,406

Accrued interest for long-term liabilities. This is the net change in accrued interest for the current period. 370,396

Compensated absences expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. (233,336)

Other post-retirement benefit obligation reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. (2,098,932)

Revenues reported as deferred revenue in the governmental funds and recognized in the Statement of Activities. These are included in the intergovernmental revenues in the governmental fund activity. 2,882,151

Extraordinary gains and losses relating to capital assets and long term liabilities transferred to the Successor Agency are reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported in the governmental funds.

Capital assets (112,247) Deferred revenue (2,991,515) Long-term liabilities 26,424,589 Unamortized bond issuance costs (161,324) 23,159,503

Change in net assets of governmental activities 63,680,775$



BUDGETARY COMPARISON STATEMENTGENERAL FUNDYEAR ENDED JUNE 30, 2012

Variance with Final Budget

Budget Amounts Actual PositiveOriginal Final Amounts (Negative)

Budgetary Fund Balance, July 1 40,042,997$ 40,042,997$ 40,042,997$ -$ Resources (Inflows):Taxes 4,231,000 4,231,000 4,484,567 253,567 Licenses and permits 355,000 355,000 246,684 (108,316) Intergovernmental 4,138,000 4,138,000 3,906,478 (231,522) Club card fees 9,700,000 9,700,000 9,353,531 (346,469) Charges for services 315,915 315,915 307,159 (8,756) Use of money and property 3,298,318 3,298,318 3,588,530 290,212 Fines and forfeitures 526,000 526,000 441,635 (84,365) Miscellaneous 103,100 103,100 155,239 52,139 Transfers in 197,651 197,651 380,621 182,970

Amounts Available for Appropriations 62,907,981 62,907,981 62,907,441 (540) Charges to Appropriations (Outflow):General government 4,656,063 4,785,263 4,012,204 773,059 Public safety 12,241,384 12,243,884 11,685,330 558,554 Community development 744,176 744,698 591,667 153,031 Parks and recreation 2,557,340 2,538,262 2,430,171 108,091 Public works 3,263,254 3,302,204 3,066,857 235,347 Capital outlay 36,500 94,407 81,409 12,998 Debt service: Principal retirement 80,000 80,000 80,000 - Interest and fiscal charges 161,038 161,038 161,038 - Transfers out 325,000 325,000 1,528,951 (1,203,951)

Total Charges to Appropriations 24,064,755 24,274,756 23,637,627 637,129

Budgetary Fund Balance, June 30 38,843,226$ 38,633,225$ 39,269,814$ 636,589$



STATEMENT OF NET ASSETSPROPRIETARY FUNDS JUNE 30, 2012

NonmajorEnterprise

FundsGolf Course Total

Assets:Current:

Cash and investments 9,415$ 10,927 $ 20,342$ Receivables:

Accounts 13,519 - 13,519 Accrued interest 75 - 75

Restricted:Cash with fiscal agent 416,340 - 416,340

Total Current Assets 439,349 10,927 450,276

Noncurrent:Unamortized debt issuance costs 152,268 - 152,268 Capital assets - net of accumulated depreciation 7,959,008 2,167 7,961,175

Total Noncurrent Assets 8,111,276 2,167 8,113,443

Total Assets 8,550,625$ 13,094$ 8,563,719$

Liabilities and Net Assets:Liabilities:Current:

Accounts payable 87,760$ 9,871$ 97,631$ Accrued liabilities 751 1,056 1,807 Accrued interest 47,458 - 47,458 Bonds, notes, and capital leases 225,000 - 225,000

Total Current Liabilities 360,969 10,927 371,896

Noncurrent:Bonds, notes, and capital leases 3,428,827 - 3,428,827

Total Noncurrent Liabilities 3,428,827 - 3,428,827

Total Liabilities 3,789,796 10,927 3,800,723

Net Assets:Invested in capital assets, net of related debt 4,305,181 2,167 4,307,348 Restricted for debt service 416,340 - 416,340 Unrestricted 39,308 - 39,308

Total Net Assets 4,760,829 2,167 4,762,996

Total Liabilities and Net Assets 8,550,625$ 13,094$ 8,563,719$

Business-Type Activities - Enterprise Funds

Water



STATEMENT OF REVENUES, EXPENSESAND CHANGES IN FUND NET ASSETSPROPRIETARY FUNDS YEAR ENDED JUNE 30, 2012

NonmajorEnterprise


Operating Revenues:Sales and service charges 1,150,100$ 154,555$ 1,304,655$ Miscellaneous 111,519 5,343 116,862

Total Operating Revenues 1,261,619 159,898 1,421,517

Operating Expenses:Cost of sales and services 824,821 120,225 945,046 Personnel services 138,860 120,968 259,828 Depreciation expense 180,757 630 181,387

Total Operating Expenses 1,144,438 241,823 1,386,261

Operating Income (Loss) 117,181 (81,925) 35,256

Nonoperating Revenues (Expenses):Interest revenue 17,072 10,924 27,996 Interest expense (199,915) - (199,915)

Total Nonoperating Revenues (Expenses) (182,843) 10,924 (171,919)

Income (Loss) Before Transfers (65,662) (71,001) (136,663)

Transfers in 880,793 85,669 966,462 Transfers out (197,651) - (197,651)

Changes in Net Assets 617,480 14,668 632,148

Net Assets:Beginning of Year 4,143,349 (12,501) 4,130,848

End of Fiscal Year 4,760,829$ 2,167$ 4,762,996$


Water



STATEMENT OF CASH FLOWSPROPRIETARY FUNDS YEAR ENDED JUNE 30, 2012

OtherEnterprise


Cash Flows from Operating Activities:Cash received from customers and users 1,261,619$ 159,898$ 1,421,517$ Cash paid to suppliers for goods and services (839,772) (113,992) (953,764) Cash paid to employees for services (138,860) (120,968) (259,828)

Net Cash Provided (Used) by Operating Activities 282,987 (75,062) 207,925

Cash Flows from Non-CapitalFinancing Activities:

Cash transfers out (197,651) - (197,651) Cash transfers in 880,793 85,669 966,462 Repayment made to other funds - (10,604) (10,604)

Net Cash Provided (Used) by Non-Capital Financing Activities 683,142 75,065 758,207

Cash Flows from Capital and Related Financing Activities:

Acquisition and construction of capital assets (804,863) - (804,863) Principal paid on capital debt (215,000) - (215,000) Interest paid on capital debt (176,518) - (176,518)

Net Cash Provided (Used) by Capital and Related Financing Activities (1,196,381) - (1,196,381)

Cash Flows from Investing Activities:Interest received 17,072 10,924 27,996

Net Cash Provided (Used) byInvesting Activities 17,072 10,924 27,996

Net Increase (Decrease) in Cashand Cash Equivalents (213,180) 10,927 (202,253)

Cash and Cash Equivalents at Beginning of Year 638,935 - 638,935

Cash and Cash Equivalents at End of Year 425,755$ 10,927$ 436,682$

Reconciliation of Operating Income to Net CashProvided (Used) by Operating Activities:Operating income (loss) 117,181$ (81,925)$ 35,256$ Adjustments to reconcile operating income (loss) net cash provided (used) by operating activities:

Depreciation 180,757 630 181,387 Increase (decrease) in accounts payable (14,951) 6,233 (8,718)

Total Adjustments 165,806 6,863 172,669 Net Cash Provided (Used) by Operating Activities 282,987$ (75,062)$ 207,925$

Non-Cash Investing, Capital, and Financing Activities:Amortization of cost of issuance, bond premium and

loss on defeasance. 23,397$ -$ 23,397$


Water



STATEMENT OF FIDUCIARY NET ASSETSFIDUCIARY FUNDSJUNE 30, 2012

Assets:Cash and investments 3,275,547$ Receivables:

Notes and loans 6,216,964 Prepaid costs 65,526 Deposits 20,120 Deferred charges 155,984 Restricted assets:

Cash and investments with fiscal agents 2,039,701 Capital assets:

Capital assets, not being depreciated 112,247

Total Assets 11,886,089

Liabilities:Accounts payable 191,391 Accrued liabilities 12,858 Accrued interest 363,308 Deposits payable 25,000 Long-term liabilities:

Due in one year 9,546,675 Due in more than one year 67,742,874

Total Liabilities 77,882,106

Net Assets:Held in trust for other purposes (65,996,017)

Total Net Assets (65,996,017)$

Private-Purpose Trust

Fund Successor

Agency of the Former

Community Development Commission



STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS

FIDUCIARY FUNDS

YEAR ENDED JUNE 30, 2012

Additions:

Taxes 1,380,543$

Interest and change in fair value of investments 301,100

Total Additions 1,681,643

Deductions:

Administrative expenses 145,585

Contractual services 101,287

Interest expense 752,241

Total Deductions 999,113

Extraordinary gain/(loss) on dissolution

of redevelopment agency (Note 15) (66,678,547)

Changes in Net Assets (65,996,017)

Net Assets - Beginning of the Year -

Net Assets - End of the Year (65,996,017)$

Private-

Purpose Trust

Fund

Successor

Agency of the

Former

Community

Development

Commission



24

CITY OF BELL GARDENS NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012

I. SIGNIFICANT ACCOUNTING POLICIES

Note 1: Organization and Summary of Significant Accounting Policies

a. Description of the Reporting Entity This report includes all fund types of the City of Bell Gardens (the "primary government"), as well as the Bell Gardens Community Development Commission (the Commission) and the Bell Gardens Financing Authority (the Authority). These latter two entities meet the definition of a "component unit", and are presented on a "blended" basis, as if they were part of the primary government. Although the Commission and the Authority are legally separate entities, the governing boards of these entities are comprised of the same membership as the City Council. The City may impose its will on these component units, including the ability to appoint, hire, reassign or dismiss management. There is also a financial benefit/burden relationship between the City and these entities. The City of Bell Gardens, California (City) was incorporated on August 1, 1961. The City operates under a Council-Manager form of government and provides the following services: general government, public safety, public works, recreation and community development. The Bell Gardens Redevelopment Agency (Agency) was established on July 10, 1972, pursuant to the State of California Health and Safety Code Section 33000, entitled "Community Redevelopment Law". On May 27, 1997, the City expanded the Agency to a Community Development Commission (Commission) pursuant to the State of California Health and Safety Code, Section 34100, to include housing activities. The primary purpose of the Commission is to eliminate blighted areas by encouraging development of residential, commercial, industrial, recreational and public facilities and to provide safe and sanitary dwelling accommodations in the City, available to persons of low income. The Community Development Commission was dissolved as of January 31, 2012, through the Supreme Court decision on Assembly Bill 1X 26. See Note 14 for more information on the dissolution. The Bell Gardens Financing Authority (Authority) was created on November 28, 1988, under a Joint Exercise of Powers Agreement by and between the City of Bell Gardens and the Bell Gardens Community Development Commission. The Authority was established pursuant to the laws of the State of California with authority to acquire the Commission's bonds as provided in Section 6588 of the Government Code of the State of California. The Commission has determined that "significant public benefits" will be derived by the Commission in undertaking the issuance of the bonds and their sale to the Authority and resale to the underwriter, in furtherance of the corporate purposes of the Commission. Separate financial statements are not prepared for the Commission and the Authority.

25

CITY OF BELL GARDENS NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 1: Organization and Summary of Significant Accounting Policies (Continued)

b. Government-Wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net assets and the statement of activities) report information on all of activities of the primary government. For the most part, the effect of interfund activity has been removed from these statements, and eliminations have been made to minimize the double counting of internal 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 and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and the major individual enterprise fund are reported as separate columns in the fund financial statements.

c. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide and proprietary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when the liability is incurred, regardless of the timing of the related cash flows. 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. Under this method, revenues are recognized when 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. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal year. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences, claims and judgments are not recognized until paid. The City’s fiduciary funds consist of a private purpose trust fund which is reported using the “economic resources” measurement focus and the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred.

26


Property taxes, charges for services, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the government. The City reports the following major governmental funds:

� The General Fund is the general operating fund of the City. All general tax revenues

and other receipts that are not allocated by law or contractual agreement to some other fund are accounted for in this fund. General operating expenditures not paid through other funds are paid from the General Fund.

� The Low and Moderate Housing Fund was established to account for the assets of the former Community Development Commission’s Low and Moderate Housing Fund.

The City reports the following major proprietary fund:

� The Water Enterprise Fund accounts for the financial activity of the City's water utility.

The costs of providing these services to the general public are financed or recovered primarily through user charges.

Additionally, the City reports the following fund types:

� Special Revenue Funds – These funds account for proceeds of specific revenue

sources that are legally restricted or otherwise assigned for specific purposes.

� Capital Projects Funds – These funds account for the financial resources to be used for the acquisition or construction of major capital facilities.

� The private-purpose trust fund is used to account for the assets and liabilities of the

former community development commission and the allocated revenue to pay estimated installment payments of enforceable obligations until the obligations of the former community development commission are paid in full and assets have been liquidated.

Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are 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.

As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are payments in lieu of taxes and other charges between the government's water function and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned.

27


Amounts reported as program revenues include 1) charges to members, customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the Water Enterprise Fund are charges to customers for sales and services. Operating expenses for the enterprise fund includes the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non operating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resources first, then use unrestricted resources as needed.

d. Assets, Liabilities and Net Assets or Equity

1. Cash and Investments

Investments are reported in the accompanying statement of net assets at fair market value. Changes in fair market value that occur during a fiscal year are recognized as investment income reported for that fiscal year. Investment income includes interest earnings, changes in fair market value, and any gains or losses realized upon the liquidation, maturity, or sale of investments.

The City pools cash and investments of all funds, except for assets held by bond trustees and fiscal agents. Each fund's share in this pool is displayed in the accompanying financial statements as cash and investments. Investment income, earned by the pooled investments, is allocated to the various funds based on each fund's average cash and investment balance. For purposes of the statement of cash flows, the City considers all highly liquid investments (including restricted assets) with maturity of three months or less when purchased to be cash equivalents. Cash invested in the City's cash management pool is also considered to be cash equivalents.

2. Receivables and Payables

Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year 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 non-current portion of interfund loans). All other outstanding balances between funds are reported as "due to/from other funds." Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as "internal balances."

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Advances, as reported in the fund financial statements, are offset by a nonspendable fund balance account in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources.

All trade and property tax receivables are shown net of an allowance for uncollectibles. Under California law, property taxes are assessed and collected by the counties at 1% of assessed value plus other increases approved by the voters. Property taxes collected go into a pool and are then allocated to the cities based on a predetermined formula. The City of Bell Gardens accrues only those taxes which are received from the County of Los Angeles within 60 days after year-end.

Lien date: January 1Levy date: June 30Due dates: November 1, February 1Delinquent dates: December 11, April 11

3. Inventories and Prepaid Items

Inventories of materials and supplies (if material) are carried at cost on a first-in, first-out (FIFO) basis. The City uses the consumption method of accounting for inventories. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements.

4. Restricted Assets

Restricted assets represent unexpended bond proceeds, interest earnings thereon and reserve amounts of certificates of participation and tax allocation bonds. Under the related resolutions and indentures, the remaining proceeds are restricted for the use of future construction of improvements to the respective projects, for debt service or for reserve requirements. The majority of these assets are held by trustees and fiscal agents.

5. Capital Assets

Capital assets, which include property, plant, equipment, intangible assets and infrastructure assets (e.g., roads, bridges, sidewalks and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated assets are valued at the fair value of the assets on the date on which they were contributed. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. The City utilizes a capitalization threshold of $5,000-$10,000 depending on asset type.

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Depreciation is charged to operations using the straight-line method over the estimated useful lives of the assets as follows:

Buildings and improvements 20-40 yearsEquipment 3-15 yearsInfrastructure 20-50 yearsWater rights 100 years

6. Compensated Absences

The cost of earned but unused vacation and sick leave, for which the City has a future obligation to pay, is recognized in the government-wide financial statements. A liability for these amounts is reported in governmental funds only if they become due and payable as a result of employee resignations or retirements. Typically, the City liquidates its compensated absences with general fund resources.

7. 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 reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net assets. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the straight line 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 term of the related debt. 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 debt proceeds received, are reported as debt service expenditures.

8. Fund Equity

In the fund financial statements, governmental funds report the following fund balance classification:

Nonspendable - include amounts that cannot be spent because they are either

(a) not in spendable form or (b) legally or contractually required to be maintained intact.

Restricted - include amounts that are constrained on the use of resources by

either (a) external creditors, grantors, contributors, or laws of regulations of other governments or (b) by law through constitutional provisions or enabling legislation.

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Committed – the City Council, as the City’s highest level of decision-making authority, may commit fund balance for specific purposes pursuant to constraints imposed by formal actions taken, such as an ordinance or resolution. These committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified use through the same type of formal action taken to establish the commitment. City Council action to commit fund balance needs to occur within the fiscal reporting period; however, the amount can be determined subsequently. Assigned – include amounts that are constrained by the government’s intent to be used for specific purposes, but are neither restricted nor committed. Pursuant to the City’s fund balance policy established by the City Council by resolution, it has delegated the authority to assign fund balance amounts to the City Manager or his/her designee for intended specific purposes.

Unassigned - include the residual amounts that have not been restricted, committed, or assigned to specific purposes.

The City Council, as the City's highest level of decision-making authority, may commit fund balance for specific purposes pursuant to constraints imposed by formal actions taken, such as adoption of an ordinance or resolution. These committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified use through the same type of formal action taken to establish the commitment. City Council action to commit fund balance needs to occur within the fiscal reporting period; however the amount can be determined subsequently. In July 2008, through Resolution 2008-17, the City Council adopted a fund balance reserve policy. The policy consists of establishing an economic contingency reserve by placing liquid cash in a financial institution in compliance with the investment policy in the amount of $1,000,000 commencing July 1, 2008 and adding $200,000 to the established reserve fund each fiscal year thereafter. The City Council’s goal is to achieve a minimum of 10% of the annual General Fund appropriations as committed fund balance in the General Fund. The accounting policies of the City consider restricted fund balance to have been spent first when expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available. Similarly, when expenditure is incurred for purposes for which amounts in any of the unrestricted classifications of fund balance could be used, the City considers committed amounts to be reduced first, followed by assigned amounts and then unassigned amounts.

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CITY OF BELL GARDENS NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012

II. STEWARDSHIP

Note 2: Stewardship, Compliance and Accountability

a. General Budget Policies

The City's budget is prepared under the direction of the City Manager. Revenues are budgeted based on source. Expenditures are budgeted by functions, with sub classifications by department and object of expenditures. The City Council approves each year's budget submitted by the City Manager prior to the beginning of the new fiscal year. It includes proposed expenditures and estimated revenues and is legally adopted on a basis consistent with generally accepted accounting principles. Public hearings are conducted prior to its adoption by Council. The City Manager is authorized to transfer budgeted amounts between departments and object categories, and also between programs. Council approval is required only for transfers of budgeted amounts between funds, or for an increase in total appropriations. Supplemental appropriations, where required during the period are also approved by the Council. Budgeted expenditures are controlled at the fund level. During the year, several supplemental appropriations were necessary. At fiscal year-end, all operating budget appropriations lapse. For fiscal year 2011-2012, the following funds had no legally adopted budget: Low and Moderate Housing Recreation

CLEEP Grant Separated Employee Benefits

OJJDP Boxing COPS Tech

b. Fund Deficit At June 30, 2012, the following non-major funds had deficit fund balances:

Special Revenue Funds:

Community Development Block Grant (53,767)$ Capital Project Funds:

Capital Improvement Projects (262,715)

The fund deficits are expected to be eliminated with future revenues and transfers.

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CITY OF BELL GARDENS NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 2: Stewardship, Compliance and Accountability (Continued)

c. Excess Expenditures

Expenditures for the year ended June 30, 2012, exceeded the appropriations in the following funds:

Budget Actual Variance

Nonmajor Governmental Funds:Special Revenue Funds:

Public Safety Augmentation 289,722$ 350,989$ (61,267)$ Recycling Grants 14,200 19,744 (5,544) Post Employment Benefits 400,000 509,529 (109,529) 2008 State Homeland Security Grant 50,000 99,415 (49,415) Anson Ford Park 219,700 229,038 (9,338)

Fund

III. DETAILED NOTES ON ALL FUNDS

Note 3: Cash and Investments

As of June 30, 2012, cash and investments were reported in the accompanying financial statements as follows:

Governmental activities 11,187,114$ Business-type activities 436,682 Fiduciary funds 5,315,248

Total Cash and Investments 16,939,044$

The City of Bell Gardens maintains a cash and investment pool that is available for use for all funds. Each fund type's position in the pool is reported on the combined balance sheet as cash and investments. The City has adopted an investment policy, which authorizes it to invest in various investments. Deposits

At June 30, 2012, the carrying amount of the City’s deposits was $8,777 and the bank balance was $331,997. The $323,220 difference represents outstanding checks and other reconciling items. The California Government Code requires California banks and savings and loan associations to secure a City’s deposits by pledging government securities with a value of 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 Treasurer may waive the collateral requirement for deposits which are fully insured up to $250,000 by the FDIC. The collateral for deposits in federal and state chartered banks is held in safekeeping by an authorized Agent of Depository recognized by the State of California Department of Banking. The collateral for deposits with savings and loan associations is generally held in safekeeping by the Federal Home Loan Bank in San Francisco, California as an Agent of Depository. These securities are physically held in an undivided pool for all California public agency depositors. Under

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CITY OF BELL GARDENS NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 3: Cash and Investments (Continued)

Government Code Section 53655, the placement of securities by a bank or savings and loan association with an "Agent of Depository" has the effect of perfecting the security interest in the name of the local governmental agency. Accordingly, all collateral held by California Agents of Depository are considered to be held for, and in the name of, the local governmental agency.

A provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act provides temporary unlimited deposit insurance coverage for noninterest-bearing transaction account at all FDIC-insured institutions. This provision was effective from December 31, 2010 and will remain effective until December 31, 2012. Noninterest-bearing transaction accounts is defined as an account (1) with respect to which interest is neither accrued nor paid; (2) on which the depositor or account holder is permitted to make withdrawals by negotiable or transferable instrument, payment orders of withdrawal, telephone or other electronic media transfers, or other similar items for the purpose of making payments or transfers to third parties or others; and (3) on which the FDIC-insured depository institutions does not reserve the right to require advance notice of an intended withdrawal. As of June 30, 2012, the City maintains cash deposits that are temporary covered by this provision.

Investments Authorized by the City's Investment Policy

Under provision of the City’s investment policy, and in accordance with Section 53600 of the California Government Code, the following investments are authorized:

Investment TypesU.S. Treasury Bills, Bonds and Notes None None NoneU.S. Government Agency Securities None None NoneBills of Exchange 180 days 40% 15%Commercial Paper 270 days 40% 15%Negotiable Certificates of Deposit 5 years 30% 15%Repurchase Agreements 92 days None 15%Reverse Repurchase Agreements 92 days None 15%Local Agency Investment Fund (LAIF) None None NoneMedium Term Corporate Notes 5 years 30% 15%

Maximum Maturity

Maximum Percentage of Portfolio

Maximum Investment

In One Issuer

Investments Authorized by Debt Agreements

The above investments do not address investment of debt proceeds held by a bond trustee. Investments of debt proceeds held by a bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy.

Investment in State Investment Pool

The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by the California Government Code under the oversight of the Treasurer of the State of California. The fair value of the City's investment in this pool is reported in the

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accompanying financial statements at amounts based upon the City's pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.

Credit Risk

Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. The City's investment policy limits investments in medium term notes (MTN’s) to those rated "A" or higher by Standard and Poor's (S&P) or by Moody's. It also limits the investments in commercial paper to those rated "A1+" or higher by Standard and Poor's (S&P) or “P1” by Moody's. As of June 30, 2012, the City invested in treasury obligations. All securities were investment grade and were legal under State law. Investments in U.S. treasuries are not considered to have credit risk and, therefore, their credit quality is not disclosed. As of June 30, 2012, the City's investments in external investment pools and money market mutual funds are unrated. On August 5, 2011, Standard & Poor's Ratings Services lowered its long-term sovereign credit rating on the United States of America to AA+ from AAA. As a result, on August 8, 2011, Standard & Poor's Ratings Services lowered its issuer credit ratings and related issue ratings on various Federal Home Loan Bank, Federal Farm Credit Bank, Fannie Mae and Freddie Mac to AA+ from AAA. The City invests in LAIF which invests in various underlying securities, including the federal agency securities listed above. While LAIF is not rated, the federal agency securities are, and these have been affected by this rating change as well.

Concentration of Credit Risk The City’s investment policy does not impose restrictions on the maximum percentage it can invest in a single type of investment. As of June 30, 2012, in accordance with GASB Statement No. 40 requirements, the City is exposed to concentration of credit risk whenever they have invested more than 5% of their total investments in any one issuer. As of June 30, 2012, the City was not exposed to concentration of credit risk.

Custodial Credit Risk The custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, a government will not be able to recover the value of investment or collateral securities that are in the possession of an outside party. Custodial credit risk does not apply to a local government's indirect investment in securities through the use of mutual funds or government investment pools (such as LAIF). As of June 30, 2012, none of the City’s deposits or investments were exposed to custodial credit risk.

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Disclosures Relating to Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The City's investment policy limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. The City's investment policy states that, with the exception of the investment of bond proceeds and LAIF, investments may not exceed five years in maturity. The City has elected to use the segmented time distribution method of disclosure for its interest rate risk. As of June 30, 2012, the City had the following investments and original maturities:

Investment Type

Local Agency Investment Fund 8,715,568$ Money Market Accounts 5,113,693 Cash with Fiscal Agents:

Money Market Accounts 685,512 Treasury Obligations 2,415,494

Total 16,930,267$

Remaining Investment Maturities6 months

or less

Note 4: Notes and Loans Receivable

Notes and loans receivable at June 30, 2012, consist of the following:

a. During 1992-93, the Bell Gardens Community Development Commission entered into a loan agreement with Nehemiah West Housing Corporation for the development of low to moderate-income housing. The loan amount is $1,000,000 originally due October 13, 1994, and bearing interest at the rate of 12% per annum compounded after its due date. The balance at June 30, 2012, is $658,889. The Commission has recorded deferred revenue at June 30, 2012, for the remainder of the outstanding loan. As a result of the dissolution of the Community Development Commission, the loan receivable was transferred to the City’s Low and Moderate Housing Fund.

b. At June 30, 2012, the City had deferred loans receivable pertaining to housing

rehabilitation loans and micro business loans given under the Community Development Block Grant Program in the amount of $547,068 which has also been recorded as deferred revenue.

c. The City and Southern California Water Company executed an agreement effective

July 1, 1990, providing for reimbursement to the City of certain costs incurred by the City for water system improvements. The total reimbursement has been estimated at approximately $466,563 and is to be repaid in annual installments. At June 30, 2012, the balance of the receivable was $191,751 which has also been recorded as deferred revenue.

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CITY OF BELL GARDENS NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 4: Notes and Loans Receivable (Continued)

d. During 1997-98, the City instituted a deferred loan program for academic scholarships. At

June 30, 2012, the balance of the loans outstanding is $747,797 which has also been recorded as deferred revenue.

e. As of June 30, 2012, the City has $66,741 in settlements receivable. The City is

scheduled to receive $3,600 annually toward the receivable.

f. The Bell Gardens Community Development Commission is required by State law to set aside funds to create and preserve housing that is affordable to low and moderate income families and individuals. The City has decided to utilize these funds for a second mortgage and/or closing costs, as needed for low-to-moderate income first time homebuyers. The City has established a not-to-exceed cap of $33,000 per case on an as needed basis. The Bell Gardens First Time Home Buyer Program is a deferred equity share loan secured by a second deed of trust and note with an annual rate of 3%. The loan shall become due and payable only when the property is sold, leased or transferred. Repayment terms of principal, shared equity and interest at 3% per annum simple interest vary depending on the year sold or transferred. After the twentieth year, the loan is forgiven. The Commission's share of equity in the property shall not exceed the proportional investment as a percentage of the original purchase price. The balance of the First Time Home Buyer Program at June 30, 2012, is $943,036 which has also been recorded as deferred revenue. As a result of the dissolution of the Community Development Commission, the loan receivable was transferred to the City’s Low and Moderate Housing Fund.

g. On March 22, 2011, Terra Bella, LLP, a California limited partnership (the Borrower) and

the Bell Gardens Community Development Commission (the Commission) entered into an owner participation agreement to develop a senior affordable housing project consisting of 65 units. Pursuant to the agreement, the Commission has provided financial assistance in the amount of $2,600,000 for the partial acquisition, construction, operation and maintenance of the units plus $32,000 on preconstruction loans. The promissory note shall bear simple interest at a rate of 3% per annum which is recorded as deferred revenue. Payments shall be made annually in arrears on May 1. The entire unpaid principal balance, together with all accrued and unpaid interest, shall be due on the date which is 65 years from the date a certificate of occupancy is issued for the last residential unit in the project. The balance at June 30, 2012, including accrued interest of $59,220, is $2,691,220. As a result of the dissolution of the Community Development Commission, the loan receivable was transferred to the City’s Low and Moderate Housing Fund.

h. On April 1, 2005, Bell Gardens Housing Partners, L.P., a California limited partnership entered into a promissory note to pay the Bell Gardens Community Development Commission $3,812,203 for the payment of public and private debts. The Commission has provided certain financial assistance in construction of a 72-unit senior affordable housing project by providing a Commission Loan (which is represented by this Promissory Note) in the amount of $3,812,203 for the acquisition and clearing of the site and to help defray Developer's costs. The promissory note amount shall bear simple interest at the rate of 3% per annum, and 10% per annum and shall accrue upon the amount of each payment required upon the date each such payment is due. The Promissory Note shall be paid from “Residual Receipts”, defined as an amount equal to sixty-five percent (65%) of the net profits produced from the project (on a prorate basis), until the note amount has been repaid in full. Any remaining principal, interest and other amounts due and owing under this promissory note shall be paid in full on or before the fifty-fifth (55th) anniversary of the date of the promissory note.

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CITY OF BELL GARDENS NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 4: Notes and Loans Receivable (Continued)

The balance of the promissory note and the related interest have also been recorded as deferred revenue. The outstanding balance at June 30, 2012, is as follows:

Principal Amount Interest Amount TotalCDBG Special Revenue 964,100$ 209,692$ 1,173,792$

1,514,960 329,504 1,844,464 Low and Moderate Housing 1,333,143 289,959 1,623,102

3,812,203 829,155 4,641,358

(1,514,960) (329,504) (1,844,464)

2,297,243$ 499,651$ 2,796,894$

Former Community Development Commission

Less amount reported in the Successor Agency

As a result of the dissolution of the Community Development Commission, $1,844,464 of this note receivable is reported in the Successor Agency. See Note 15.

Note 5: Inter-fund Receivables, Payables, and Transfers

a. Due To / From Other Funds: The following summarizes the total due to and from other funds as of June 30, 2012:

NonmajorGovernmental

Due From Other Funds FundsGeneral Fund 221,659$

Due to Other Funds

Inter-fund receivables and payables at June 30, 2012, are the result of the elimination of deficit cash balances in individual funds.

b. Transfers To / From Other Funds: The following summarizes the total transfers in and transfers out to other funds as of June 30, 2012:

Nonmajor NonmajorGeneral Governmental Enterprise

Transfers Out Fund Funds Water Fund Funds TotalGeneral Fund -$ 562,489$ 880,793$ 85,669$ 1,528,951$ Nonmajor Governmental Funds 182,970 554,823 - - 737,793 Water Fund 197,651 - - - 197,651 Total 380,621$ 1,117,312$ 880,793$ 85,669$ 2,464,395$

Transfers In

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CITY OF BELL GARDENS NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 5: Interfund Receivables, Payables, and Transfers (Continued)

The General Fund transferred funds to Nonmajor Governmental Funds to fund capital projects and to pay for operating costs. The General Fund also transferred funds to cover for the Golf Course Fund’s operation deficit and to reimburse the Water Fund for expenditures incurred relating to the COP debt issue. The transfer to the General Fund from the Water Fund was for reimbursement of the debt service payment on the 2006 Certificates of Participation and the transfer from the Non-Major Governmental Funds was to reimburse the General Fund for cost incurred relating to the Ford Sports Complex.

Note 6: Capital Assets

A summary of the changes in capital asset activity for the year ended June 30, 2012, is as follows:

Transfers to

Beginning Successor EndingBalance Increases Decreases Transfers Agency * Balance

Governmental Activities:Capital assets, not being depreciated:

Land 69,022,714$ -$ -$ -$ -$ 69,022,714$ Construction-in-progress 2,665,779 1,787,405 201,601 (2,478,271) (112,247) 1,661,065

Total Capital Assets, Not Being Depreciated 71,688,493 1,787,405 201,601 (2,478,271) (112,247) 70,683,779

Capital assets, being depreciated:Buildings and structures 14,851,179 - - - - 14,851,179 Equipment 6,618,751 268,780 - - - 6,887,531 Infrastructure 42,392,977 - 635,461 2,478,271 - 44,235,787

Total Capital Assets, Being Depreciated 63,862,907 268,780 635,461 2,478,271 - 65,974,497

Less accumulated depreciation:Buildings and structures 4,627,064 516,805 - - - 5,143,869 Machinery and equipment 5,404,852 508,934 - - - 5,913,786 Infrastructure 16,146,865 1,821,116 491,894 - - 17,476,087

Total Accumulated Depreciation 26,178,781 2,846,855 491,894 - - 28,533,742

Total Capital Assets, Being Depreciated, Net 37,684,126 (2,578,075) 143,567 2,478,271 - 37,440,755

Governmental Activities Capital Assets, Net 109,372,619$ (790,670)$ 345,168$ -$ (112,247)$ 108,124,534$

* As a result of the dissolution of the Community Development Commission, capital assets of the former Community Development Commission were transferred to the Successor Agency. See Note 15 for additional information. Depreciation expense was charged to functions/programs of the primary government in the Governmental Activities as follows:

Governmental Activities:General government 963,860$ Public works 1,882,995

Total Depreciation Expense - Governmental Activities 2,846,855$

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CITY OF BELL GARDENS NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 6: Capital Assets (Continued)

Beginning EndingBalance Increases Decreases Transfers Balance

Business-Type Activities:Capital assets, not being depreciated:

Land 1,011,000$ -$ -$ -$ 1,011,000$ Construction in progress 429,802 804,863 - (840,529) 394,136

Total Capital Assets, Not Being Depreciated 1,440,802 804,863 - (840,529) 1,405,136

Capital assets, being depreciated:Water rights 1,914,000 - - - 1,914,000 Equipment 5,738,884 - - 840,529 6,579,413

Total Capital Assets, Being Depreciated 7,652,884 - - 840,529 8,493,413

Less accumulated depreciation:Water rights 401,940 19,140 - - 421,080 Equipment 1,354,047 162,247 - - 1,516,294

Total Accumulated Depreciation 1,755,987 181,387 - - 1,937,374

Total Capital Assets, Being Depreciated, Net 5,896,897 (181,387) - 840,529 6,556,039

Business-Type Activities Capital Assets, Net 7,337,699$ 623,476$ -$ -$ 7,961,175$

Depreciation expense was charged to functions/programs of the primary government in the Business-Type Activities as follows:

Business-Type Activities:Water 180,757$ Golf Course 630

Total Depreciation Expense - Business-Type Activities 181,387$

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CITY OF BELL GARDENS NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 7: Long-Term Debt

a. Governmental Activities The following is a schedule of changes in governmental fund long-term debt for the year ended June 30, 2012:

Transfers to

Balance the Successor Balance Due WithinJuly 1, 2011 Additions Deletions Agency June 30, 2012 One Year

2003 Tax Allocation Bonds - Project Area No. 1 5,720,000$ -$ 375,000$ (5,345,000)$ -$ -$ Central City Project Area 8,145,000 - 265,000 (7,880,000) - -

2005 Revenue Bonds Series A -Project Area No. 1 1,465,000 - 80,000 (1,385,000) - - Central City Project Area 2,830,000 - 70,000 (2,760,000) - -

2006 Certificates of Participation 3,510,000 - 80,000 - 3,430,000 85,000 Notes Payable:

Bear Sterns 8,890,267 - 97,280 (8,792,987) - - County of Los Angeles - Section 108 3,731,000 - 371,000 - 3,360,000 395,000

Accrued leave benefits 2,582,495 420,907 187,571 - 2,815,831 31,000 Other post employment benefits obligation 7,492,251 2,608,461 509,529 - 9,591,183 - CJPIA Retrospective Deposit Liability - 962,462 - - 962,462 -

Sub-total 44,366,013$ 3,991,830$ 2,035,380$ (26,162,987)$ 20,159,476 511,000$

Unamortized Bond Discount (40,325)

20,119,151$

* As a result of the dissolution of the Community Development Commission, indebtedness of the former Community Development Commission was transferred to the Successor Agency. See Note 15 for disclosures of indebtedness.

2006 Certificates of Participation

On June 20, 2006, the Authority issued $3,780,000 of Certificates of Participation. The proceeds were used to fund various public infrastructure improvements, to fund a reserve account and to finance the costs of the transaction. Interest rates range from 3.6% to 4.5% and is payable semiannually on each June 1 and December 1, commencing on December 1, 2006. Principal payments range from $65,000 to $115,000. At June 30, 2012, the unamortized discount outstanding was $40,325 and the total principal balance outstanding was $3,430,000.

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CITY OF BELL GARDENS NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 7: Long - Term Debt (Continued)

At June 30, 2012, the annual requirements to repay the outstanding indebtedness were as follows:

Principal Interest

2012-2013 85,000$ 158,038$ 2013-2014 85,000 154,765 2014-2015 90,000 151,365 2015-2016 95,000 147,765 2016-2017 100,000 143,870 2017-2022 550,000 653,043 2022-2027 690,000 513,475 2027-2032 875,000 332,738 2032-2037 860,000 104,500

Totals 3,430,000$ 2,359,559$

Section 108 Loan with the County of Los Angeles

During the fiscal year 2004-05, the City of Bell Gardens entered into a loan agreement with the County of Los Angeles for the construction of public improvements to develop a sport complex and cultural community center at John Anson Ford Park for $5,000,000. The proceeds were used to pay for construction of public improvements, construction management, loan underwriting and issuance fees. The interest rate is derived from the 3-month LIBOR plus 20 basis points during interim financing period, then actual HUD offering rate plus 75 basis points. Quarterly interest payments will be due in advance of each August 1, November 1, February 1

and May 1 during interim financing. At June 30, 2012, the principal balance outstanding was $3,360,000. At June 30, 2012, the annual requirements to repay the outstanding indebtedness were as follows:

Principal Interest2012-2013 395,000$ 163,489$ 2013-2014 420,000 142,950 2014-2015 448,000 120,988 2015-2016 477,000 97,481 2016-2017 508,000 72,372 2017-2022 1,112,000 60,416

Totals 3,360,000$ 657,696$

Accrued Leave Payable (Compensated Absences)

For governmental funds, accrued leave payable amounted to $2,815,831 at June 30, 2012. The balance is broken down as follows: $842,166 in vacation leave, $1,764,078 in sick leave, $62,352 in compensatory time, $100,762 in floating holiday, and $46,473 in administrative leave.

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Other Post Employment Benefits Obligation

The City’s policies relating to other post employment benefits are described in Note 9 of the Notes to Financial Statements. The liability will be paid in future years by the general fund.

CJPIA Retrospective Deposit Liability

Retrospective deposits are cost allocation adjustments to prior coverage periods. Some claims take many years to resolve and over time their estimated value changes. The retrospective adjustments are calculated annually and take into consideration all the changes in claim values that occurred during the most recent year. The formula is designed to adequately cover the cost of claims brought against members and to ensure the overall financial strength and security of the Authority. The formula was developed to be as equitable as possible by taking into consideration both risk exposure and claims experience of individual members. CJPIA has temporarily deferred the payment on retrospective deposits owed to the Authority by members. The payment deferral period extends until July 1, 2013 for the Liability program and July 1, 2015 for the Workers’ Compensation program. Retrospective deposit payments are scheduled to resume on these dates. The October 2011 annual retrospective adjustment is included in these balances. At June 30, 2012, the City has a retrospective deposit due of $962,462. Optional Payment Plans

When retrospective deposit payments resume as indicated above, members will have the opportunity to select from a variety of optional payment plans. Discounts under the incentive plan are available to members choosing to voluntarily accelerate payment during the deferral period. The City has chosen not to voluntarily accelerate payment at this time.

After the deferral period, members choosing from among the optional payment plans will be subject to a moderate annual fee. The fee is intended to provide a means for the Authority to recover otherwise foregone investment earnings and to serve as a minor disincentive for the selection of longer financing terms.

Retrospective Balances will Change Annually

Retrospective balances will change with each annual computation during the payment deferral period. Member balances may increase or decrease as a result of the most recent year’s claim development. Accordingly, some members who chose to pay off their balance in full may be required to pay additional retrospective deposits in the future based on the outcome of actual claim development reflected in subsequent retrospective deposit computations. Conversely, if claim development is favorable then subsequent retrospective adjustments could potentially result in refunds to the member.

More information on the CJPIA retrospective balances can be found on the CJPIA website at: http://www.cjpia.org.

43


b. Business-Type Activities

The following is a schedule of changes in proprietary fund long-term debt for the year ended June 30, 2012:

Balance Balance Due Within

July 1, 2011 Additions Deletions June 30, 2012 One Year

2004 Revenue Bonds 4,010,000$ -$ 215,000$ 3,795,000$ 225,000$

Unamortized bond premium 4,862 Unamortized loss on refunding (146,035)

Total 3,653,827$

2004 Water Refunding Revenue Bonds

During fiscal year 2004-2005, the Bell Gardens Financing Authority issued $5,240,000 of refunding revenue bonds to refund the 1994 water revenue bonds and pay the cost of issuing the bonds (insurance, underwriter discount, and other costs). The maturity date of the bonds is October 1, 2024. The interest rate ranges from 1.75% to 4.875%. At June 30, 2012, the unamortized premium on the 2004 water refunding revenue bonds was $4,862 and the outstanding balance was $3,795,000.

The debt service requirements to maturity for the revenue bonds outstanding at June 30, 2012, are as follows:

Principal Interest

2012-2013 225,000$ 168,705$ 2013-2014 230,000 160,343 2014-2015 240,000 151,230 2015-2016 250,000 140,805 2016-2017 260,000 129,330 2017-2022 1,505,000 444,949 2022-2027 1,085,000 80,189

Totals 3,795,000$ 1,275,551$

Note 8: Defined Benefit Pension Plan

Plan Description

The City of Bell Gardens contributes to the California Public Employees Retirement System (CalPERS), a cost-sharing multiple-employer defined benefit pension plan. CalPERS provides retirement and disability benefits, annual cost of living adjustments, and death benefits to plan members and beneficiaries. CalPERS 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 CalPERS' annual financial report may be obtained from their executive office: 400 P Street, Sacramento, CA 95814.

44

CITY OF BELL GARDENS NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 8: Defined Benefit Pension Plan (Continued)

Funding Policy

Participants are required to contribute 8% (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; the current rate is 15.320% for miscellaneous employees and 46.364% for police employees of annual covered payroll. The contribution requirements of plan members and the City are established and may be amended by PERS.

Required Contribution

For fiscal year 2011-2012, the City's contribution of $3,853,662 for PERS was equal to the City's required and actual contributions. The required contribution was determined as part of the June 30, 2009, actuarial valuation using the entry age normal actuarial cost method.

A summary of principal assumptions and methods used to determine the annual required contribution is shown in the following table:

Valuation Date June 30, 2009Actuarial Cost Method Entry Age Actuarial Cost MethodAmortization Method Level Percent of PayrollAverage Remaining Period 19 Years as of the Valuation Date (Miscellaneous)

18 Years as of the Valuation Date (Safety)Asset Valuation Method 15 Year Smoothed MarketActuarial Assumptions

Investment Rate of Return 7.75% (net of administrative expenses)Projected Salary Increases 3.25% to 14.45% depending on age, service and type

of employmentInflation 3.00%Payroll Growth 3.25%Individual Salary Growth A merit scale varying by duration of employment coupled

with an assumed annual inflation component of 3.00%and an annual production growth of 0.25%

Initial unfunded liabilities are amortized over a closed period that depends on the plan's date of entry into CalPERS. Subsequent plan amendments are amortized as a level percent of pay over a closed 20-year period. Gains and losses that occur in the operation of the plan are amortized over a 30 year rolling period, which results in an amortization of about 6% of unamortized gains and losses each year. If the Plan's accrued liability exceeds the actuarial value of plan assets, the annual contribution with respect to the total unfunded liability may not be less than the amount produced by a 30-year amortization of the unfunded liability.

45

CITY OF BELL GARDENS NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 8: Defined Benefit Pension Plan (Continued)

Required PercentageFiscal Year Contribution Contributed6/30/2010 3,451$ 100%6/30/2011 3,459 100%6/30/2012 3,854 100%

Three-Year Trend Information for PERS ($ Amount in Thousands)

For fiscal year 2011-2012, the City of Bell Gardens participated in risk pooling for its miscellaneous and safety employees. Risk pooling consists of combining assets and liabilities across employers to produce large groups where the impact of a catastrophic demographic event is shared among all employers of the same risk pool. Participation in risk pools is mandatory for all rate plans with less than 100 active members. Mandated participation in risk pools was initially based on the active membership of each rate plan as of June 30, 2003. The implementation of risk pools was done in a way that minimizes the impact on employer contribution rates. The first year in risk pools, the employer contribution rates are almost identical to what the rates would have been outside pools. Future rates will be based on the experience of each pool. Pooling will reduce the volatility of future employer rates. Mandated participation will occur on an annual basis. If on any valuation date starting with the June 30, 2003, valuation, a rate plan has less than 100 active members, it will be mandated in one of the risk pools effective on that valuation date.

Note 9: Other Post-Retirement Benefits

Plan Description

In addition to the pension benefits described above, the City provides retiree health insurance benefits. In accordance with the plan, which was approved by the City Council, these benefits are available to all employees who are eligible for normal PERS retirement and who retire after January 1, 1990. The City pays for monthly medical, dental and vision premium. The portion paid is based on years of service at retirement. Executives receive 10% for each year and 100% at 10 years. All other receive 0% for the first four years, 50% at five years plus 10% each year thereafter up to 100%.

Funding Policy

Currently, the City funds retiree healthcare benefits on a pay-as-you-go basis. The City recognizes expenditure for its share of the annual premiums as these benefits become due. For fiscal year 2011-2012, the City paid $509,529 for benefits of 20 retired employees.

Annual OPEB Cost and Net OPEB Obligation

The City’s annual other post-retirement benefit (OPEB) cost is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities over a period not to exceed thirty years.

46

CITY OF BELL GARDENS NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 9: Other Post-Retirement Benefits (Continued)

The following table shows the components of the City’s annual OPEB cost for the year, the amount actually contributed to the plan, and changes in the City’s net OPEB obligation:

Annual required contribution (ARC) 2,900,609$ Interest on net pension obligation 299,690 Adjustment to ARC (591,838)

Annual OPEB cost 2,608,461 Contribution made 509,529

Increase (decrease) in net OPEB obligation 2,098,932 Net OPEB obligation - July 1, 2011 7,492,251 Net OPEB obligation - June 30, 2012 9,591,183$

The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for the 2011-12 fiscal year and the two preceding years were as follows:

Actual Percentage of

Fiscal Year Annual Contribution Annual OPEB Net OPEBEnded OPEB Cost (Net of Adjustments) Cost Contributed Obligation

06/30/10 2,810,638$ 315,699$ 11.23% 5,174,113$ 06/30/11 2,713,624 395,486 14.57% 7,492,251 06/30/12 2,608,461 509,529 19.53% 9,591,183

Funded Status and Funding Progress

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 trends. 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 below presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Only one year is presented as this is the third year of the plan and a new actuarial has not been performed.

Actuarial UAAL asActuarial Actuarial Accrued Unfunded a % ofValuation Valuation of Liability (AAL) AAL Funded Covered Covered

date Assets Entry Age (UAAL) Ratio Payroll Payroll6/30/2009 * -$ 29,230$ 29,230$ 0.0% 8,781$ 332.9%

Schedule of Funding Progress for OPEB(Amount in Thousands)

*Most recent actuarial valuation available.

47

CITY OF BELL GARDENS NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 9: Other Post-Retirement Benefits (Continued)

Actuarial Methods and Assumptions

Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. The actuarial valuation, dated June 30, 2009, used the frozen entry age actuarial cost method, a discount rate of 4.00% which is the long-term expected rate of return on the City’s investment fund, and a medical cost trend of 7.0%, 3.5% and 2.0% per year for medical, dental and vision respectively. The unfunded accrued actuarial liability (UAAL) is being amortized over a fixed 20-year closed period as a level percentage of payroll beginning with the 2009-10 fiscal year. As of the actuarial valuation date, the City had 131 active participants and 38 retire es receiving benefits.

Note 10: Insurance a. Description of Self-Insurance Pool Pursuant to Joint Powers Agreement

The City of Bell Gardens is a member of the CALIFORNIA JOINT POWERS INSURANCE AUTHORITY (Authority). The Authority is composed of 123 California public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq. The purpose of the Authority is to arrange and administer programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group purchased insurance for property and other lines of coverage. The California JPIA began covering claims of its members in 1978. Each member government has an elected official as its representative on the Board of Directors. The Board operates through a nine-member Executive Committee.

b. Self-Insurance Programs of the Authority

Each member pays an annual contribution (formerly called the primary deposit) to cover estimated losses for the coverage period. This initial funding is paid at the beginning of the coverage period. After the close of the coverage period, outstanding claims are valued. A retrospective deposit computation is then conducted annually thereafter until all claims incurred during the coverage period are closed on a pool-wide basis. This subsequent cost re-allocation among members based on actual claim development can result in adjustments of either refunds or additional deposits required.

The total funding requirement for self-insurance programs is estimated using actuarial models and pre-funded through the annual contribution. Costs are allocated to individual agencies based on exposure (payroll) and experience (claims) relative to other members of the risk-sharing pool. Additional information regarding the cost allocation methodology is provided below.

48

CITY OF BELL GARDENS NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 10: Insurance (Continued)

General Liability - In the liability program claims are pooled separately between police and non-police exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $30,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $30,000 to $750,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs in excess of $750,000 up to the reinsurance attachment point of $5 million are distributed based on the outcome of cost allocation within the first and second loss layers. (5) Costs of covered claims from $5 million to $10 million are paid under a reinsurance contract subject to a $2.5 million annual aggregate deductible. Costs of covered claims from $10 million to $15 million are paid under two reinsurance contracts subject to a combined $3 million annual aggregate deductible. On a cumulative basis for all 2011-12 reinsurance contracts the annual aggregate deductible is $5.5 million. (6) Costs of covered claims from $15 million up to $50 million are covered through excess insurance policies. The overall coverage limit for each member including all layers of coverage is $50 million per occurrence. Costs of covered claims for subsidence losses are paid by reinsurance and excess insurance with a pooled sub-limit of $35 million per occurrence. This $35 million subsidence sub-limit is composed of (a) $5 million retained within the pool’s SIR, (b) $10 million in reinsurance and (c) $20 million in excess insurance. The excess insurance layer has a $20 million annual aggregate. Worker Compensation - The City of Bell Gardens also participates in the workers’ compensation pool administered by the Authority. In the workers’ compensation program claims are pooled separately between public safety (police and fire) and non-public safety exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $50,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $50,000 to $100,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs in excess of $100,000 up to the reinsurance attachment point of $2 million are distributed based on the outcome of cost allocation within the first and second loss layers. (5) Costs of covered claims from $2 million up to statutory limits are paid under a reinsurance policy. Protection is provided per statutory liability under California Workers’ Compensation Law. Employer’s Liability losses are pooled among members to $2 million. Coverage from $2 million to $5 million is purchased as part of a reinsurance policy, and Employer’s Liability losses from $5 million to $10 million are pooled among members.

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CITY OF BELL GARDENS NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 10: Insurance (Continued)

c. Purchased Insurance

Environmental Insurance The City of Bell Gardens participates in the pollution legal liability insurance program (formerly called environmental insurance) which is available through the Authority. The policy covers sudden and gradual pollution of scheduled property, streets, and storm drains owned by the City of Bell Gardens. Coverage is on a claims-made basis. There is a $50,000 deductible. The Authority has a limit of $50 million for the 3-year period from July 1, 2011 through July 1, 2014. Each member of the Authority has a $10 million sub-limit during the 3-year term of the policy.

Property Insurance The City of Bell Gardens participates in the all-risk property protection program of the Authority. This insurance protection is underwritten by several insurance companies. City of Bell Gardens property is currently insured according to a schedule of covered property submitted by the City of Bell Gardens to the Authority. City of Bell Gardens property currently has all-risk property insurance protection in the amount of $35,664,270. There is a $5,000 deductible per occurrence except for non-emergency vehicle insurance which has a $1,000 deductible. Premiums for the coverage are paid annually and are not subject to retrospective adjustments.

Crime Insurance The City of Bell Gardens purchases crime insurance coverage in the amount of $1,000,000 with a $2,500 deductible. The fidelity coverage is provided through the Authority. Premiums are paid annually and are not subject to retrospective adjustments.

d. Adequacy of Protection

During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or insured liability coverage in 2011-12.

Note 11: Contingent Liabilities

The City is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently determinable, in the opinion of the City attorney, the resolution of these matters will not have a material adverse effect on the financial condition of the City.

Note 12: Construction Commitments

The following material construction commitments existed at June 30, 2012:

Project NameContract Amount

Expenditures to date as of

June 30, 2012Remaining

Commitments

Local Street Resurfacing - Florence, Emil 695,000$ 673,767$ 21,233$ Field Five Synthetic Turf Project 700,000 47,667 652,333

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CITY OF BELL GARDENS NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 13: Operating Lease Agreements

a. On November 9, 1987, the Bell Gardens Community Development Commission approved

a Lease Agreement with the Bicycle Club. The Bicycle Club agreed to lease property from the Commission for use as a parking lot. The lease term is 15 years at an annual minimum rent of $559,200 per year, adjusted every five years by the greater of the Consumer Price Index or 120%. During 1989-90 the parking lot was transferred to the City of Bell Gardens as a repayment of City loans. The lease agreement was assigned to the City along with the transfer. On July 1, 2005, the Bell Gardens Community Development Commission approved an amendment to the original lease in the amount of $633,535 and $239,179 for Parcel D and C, respectively. Rent paid to the City under this agreement was $1,839,044 for the year ended June 30, 2012.

b. On November 11, 1987, the Bell Gardens Community Development Commission

approved a Lease Agreement with the Bell Gardens Hotel Partnership. The Hotel Partnership agreed to lease property with all buildings, structures, improvements and fixtures thereon for the use as a hotel and restaurant. The lease term is 99 years at a revised rate of $81,510 per year, adjusted every five years by the Consumer Price Index, plus the excess, if any, of the sum of the following over the annual rate: 6.25% of gross room revenues, 3% of gross food and beverage revenues, and 10% of all other revenues. During 1991-92, the property was transferred to the City of Bell Gardens as a repayment of City loans. The lease agreement was assigned to the City along with the transfer. Rent paid to the City under this agreement was $126,620 for the year ended June 30, 2012.

c. On February 22, 1988, the Bell Gardens Community Development Commission approved a Lease Agreement with the Bell Gardens Associates. The agreement is to lease property with all buildings, structures, improvements and fixtures thereon for use as a shopping center. The lease term is 55 years at a revised rate of $736,830, adjusted every five years by 4% from the prior increase, plus one percent of gross revenues for the preceding year. During 1991-92, the property was transferred to the City of Bell Gardens as a repayment of City loans. Rent paid to the City under this agreement was $1,248,500 for the year ended June 30, 2012.

d. On November 22, 2010, the City of Bell Gardens approved a Lease Agreement with the

City of Lynwood. The agreement is to lease 700 Acre Feet of Central Basin Groundwater Annual Pumping Right with flex rights to the City of Lynwood. The lease term is 5 years beginning in 2010-2011 at $135 per acre feet and increasing annually by $5 per acre feet until the term of the lease has expired. Rent paid to the City under this agreement was $98,000 for the year ended June 30, 2012.

Future minimum lease payments due to the City are as follows:

Parking Lot HotelShopping

Center Water Rights2013 966,298$ 81,510$ 842,647$ 101,500$ 2014 934,086 81,510 111,066 105,000 2015 - 81,510 - 108,500 2016 - 81,510 - - 2017 - 81,510 - -

2018 - thereafter - 5,705,700 - -

Totals 1,900,384$ 6,113,250$ 953,713$ 315,000$

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CITY OF BELL GARDENS NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 14: California Redevelopment Agency Dissolution

On July 18, 2011, the California Redevelopment Association (“CRA”) and the League of California Cities (“League”) filed a petition for writ of mandate with the California Supreme Court, requesting the Court to declare unconstitutional two bills that were passed as part of the 2011-12 State Budget, AB1X 26 and 27 (California Redevelopment Association v. Matosantos). AB1X 26 dissolves redevelopment agencies effective October 1, 2011. AB 1X 27 gave redevelopment agencies an option to avoid dissolution if it commits to making defined payments for the benefit of the State, school districts and certain special districts. In 2011-12, these payments amounted to a state-wide total of $1.7 billion. In 2012-13 and subsequent years, the payments totaled $400 million, annually. Each city or county’s share of these payments was determined based on its proportionate share of state-wide tax increment. On August 17, 2011 the Supreme Court issued a stay of the implementation of AB 1X 26 and 27 which allowed a redevelopment agency to continue if it adopted an AB 1X 27 ordinance. However, because of the effect of the stay order, the authority for the Redevelopment Agency to engage in most activities was suspended. The Supreme Court heard oral arguments on November 10, 2011 and on December 29, 2011 announced its decision in (California Redevelopment Association v. Matosantos). The court upheld AB 1X 26 which eliminates redevelopment agencies, but invalidated in its entirety AB 1X 27 which allowed redevelopment agencies to continue as long as they made the required payments. AB 1X26 established deadlines for the process of Redevelopment Agency dissolution and the handling of existing obligations. The Court extended certain deadlines of AB 1X 26 in its ruling by four months. The full text of AB 1X 26 may be obtained from the California legislative information website maintained by the Legislative Counsel of the State of California at: http://www.leginfo.ca.gov/bilinfo.html. As of January 31, 2012, the Community Development Commission has been dissolved and the City of Bell Gardens has elected to become the Successor Agency. The Successor Agency will be responsible for winding down the remaining activities of the dissolved Community Development Commission.

Note 15: Successor Agency Trust For Assets of Former Community Development Commission

On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 (“the Bill”) that provides for the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the City of Bell Gardens that previously had reported a redevelopment agency within the reporting entity of the City as a blended component unit. The Bill provides that upon dissolution of a redevelopment agency, either the city or another unit of local government will agree to serve as the “successor agency” to hold the assets until they are distributed to other units of state and local government. On January 23, 2012, the City Council elected to become the Successor Agency for the former community development commission in accordance with the Bill as part of City resolution number 2012-07. After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the State of California cannot enter into new projects, obligations or commitments. Subject to the control of a newly established oversight board, remaining assets can only be used to pay enforceable obligations in existence at the date of dissolution (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments).

52

CITY OF BELL GARDENS NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 15: Successor Agency Trust For Assets of Former Community Development Commission

(Continued) In future fiscal years, successor agencies will only be allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of the former redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated. The Bill 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. Management believes, in consultation with legal counsel, that the obligations of the former community development commission 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 issue is not a position of settled law and there is considerable legal uncertainty regarding this issue. It is reasonably possible that a legal determination may be made at a later date by an appropriate judicial authority that would resolve this issue unfavorably to the City. 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. Prior to that date, the final seven months of the activity of the community development commission continued to be reported in the governmental funds of the City. After the date of dissolution, the assets and activities of the dissolved community development commission are reported in a fiduciary fund (private-purpose trust fund) in the financial statements of the City. The transfer of the assets and liabilities of the former community development commission as of February 1, 2012 (effectively the same date as January 31, 2012) from governmental funds of the City to fiduciary funds was reported in the governmental funds as an extraordinary loss (or gain) in the governmental fund financial statements. The receipt of these assets and liabilities as of January 31, 2012, was reported in the private-purpose trust fund as an extraordinary gain (or 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 loss (gain) recognized in the governmental funds was not the same amount as the extraordinary gain (loss) that was recognized in the fiduciary fund financial statements.

53


(Continued) 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 loss reported in the governmental funds - increase to net assets of the Succesory Agency Trust Fund 43,519,044$

Capital assets recorded in the government-wide financial statements - increase to net assets of the Successor Agency Trust Fund (112,247)

Long-term debt reported in the government-wide financial statements - decrease to net assets of the Successor Agency Trust Fund (2,991,515)

Deferred revenue reported in the government-wide financial statements - increase in net assets of the Successor Agency Trust Fund 26,263,265

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 financial statements of the City) 66,678,547$

a. Cash and investments

Cash and investments reported in the accompanying financial statements consisted of the following:

Cash and investments pooled with the City 3,275,547$ Cash and investments with fiscal agent 2,039,701

5,315,248$

b. Notes and Loans Receivable

Notes and loans receivable at June 30, 2012, consist of the following:

In October 11, 2004, Primestor El Portal, LLP, a California limited liability company (the Borrower) and the Bell Gardens Community Development Commission (the Commission) have entered into a disposition and development agreement and a ground lease for the Borrower to lease from the Commission certain real property. Pursuant to the agreement, the Commission has agreed to provide a $3,000,000 loan to be used in connection with the construction and development of the property. The promissory note shall be for the term of the ground lease and accrue interest at six percent (6%) simple interest which are recorded as deferred revenue. Borrower’s obligation to repay shall be limited to fifteen percent (15%) of any and all net proceeds of any refinancing events and to fifty percent (50%) of any net profit resulting from the first sale event. The balance at June 30, 2012, including accrued interest of $1,372,500, is $4,372,500.

54


(Continued)

On April 1, 2005, Bell Gardens Housing Partners, L.P., a California limited partnership entered into a promissory note to pay the Bell Gardens Community Development Commission $3,812,203 for the payment of public and private debts. The Commission has provided certain financial assistance in construction of a 72-unit senior affordable housing project by providing a Commission Loan (which is represented by this Promissory Note) in the amount of $3,812,203 for the acquisition and clearing of the site and to help defray Developer's costs. The promissory note amount shall bear simple interest at the rate of 3% per annum, and 10% per annum shall accrue upon the amount of each payment required upon the date each such payment is due. The Promissory Note shall be paid from “Residual Receipts”, defined as an amount equal to sixty-five percent (65%) of the net profits produced from the project (on a prorate basis), until the note amount has been repaid in full. Any remaining principal, interest and other amounts due and owing under this promissory note shall be paid in full on or before the fifty-fifth (55th) anniversary of the date of the promissory note. The Successor Agency’s outstanding balance at June 30, 2012, including interest of $329,504, is $1,844,464.

Total notes and loans receivable at June 30, 2012, were $6,216,964.

c. Capital Assets

An analysis of capital assets as of June 30, 2012, follows:

Additions Deletions

Capital Assets, not being depreciatedConstruction in progress -$ 112,247$ -$ -$ 112,247$

Transfer from Former

Community Development Commission *

Balance July 1, 2011

Balance June 30, 2012

* As a result of the dissolution of the Community Development Commission, capital assets of the former Community Development Commission were transferred to the Successor Agency.

55


(Continued)

d. Long-Term Debt

The following debt was transferred from the Community Development Commission to the Successor Agency as of February 1, 2012 as a result of the dissolution. A description of long-term debt outstanding of the Successor Agency as of June 30, 2012, follows:

Transfers from

FormerCommunity

Balance Development Balance Due WithinJuly 1, 2011 Commission Additions Deletions June 30, 2012 One Year

Advances from the City -$ 50,969,615$ -$ -$ 50,969,615$ -$ 2003 Tax Allocation Bonds -

Project Area No. 1 - 5,345,000 - - 5,345,000 390,000 Central City Project Area - 7,880,000 - - 7,880,000 280,000

2005 Revenue Bonds Series A - - Project Area No. 1 - 1,385,000 - - 1,385,000 85,000 Central City Project Area - 2,760,000 - - 2,760,000 75,000

Notes Payable: - Bear Sterns - 8,792,987 - 76,312 8,716,675 8,716,675

Total Long-Term Debt -$ 77,132,602$ -$ 76,312$ 77,056,290 9,546,675$

Unamortized Bond Premium 290,295 Unamortized Bond Discount (57,036)

Total 77,289,549$

Advances from the City

The advances from the City consist of $50,969,615 loans with accrued interest made to the former Community Development Commission to provide cash for capital projects.

On October 20, 2012, the Department of Finance did not qualify the advances of $50,969,615 as an enforceable obligation. Health and Safety Code (HSC) section 34177 (d) (2) states that agreements, contracts, or arrangements between the City that created the Community Development Commission and the former Community Development Commission are not enforceable, unless issued within two years of the Agency’s creation date or for issuance of indebtedness to third-party investors or bondholders. The Commission was established in 1972 and the reimbursement agreements were entered into in 1973 through 1991 and in 2011, therefore, it is not considered an enforceable obligation. The Successor Agency is in the process of having the advance approved as an enforceable obligation.

56


(Continued)

2003 Tax Allocation Bonds

On June 17, 2003, the Commission issued $17,705,000 of refunding revenue bonds with an average interest rate of 3.9% to advance refund $13.7 million of outstanding 1993 revenue bonds with an average interest rate of 6.25%. The net proceeds of $17.5 million (after payment of insurance, underwriter discount and other issuance cost) plus an additional 2.1 million of 1993 series monies were used to purchase U.S. government securities. Those securities were deposited in an irrevocable trust with an escrow agent to provide for all future debt service payments on the 1993 bonds. At June 30, 2012, the unamortized discount outstanding was $57,036 and the total bonds outstanding was $13,225,000. The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2012, including interest, are as follows:

Principal Interest2012-2013 670,000$ 665,097$ 2013-2014 695,000 636,119 2014-2015 725,000 605,158 2015-2016 755,000 571,835 2016-2017 790,000 535,983 2017-2022 4,560,000 2,046,774 2022-2027 3,135,000 959,872 2027-2032 1,895,000 171,403

Totals 13,225,000$ 6,192,241$

On June 14, 2012, Moody’s Investors Service (“Moody’s”) downgraded all California tax allocation bonds rated ‘Baa3’ and above. As such, the Bonds’ insured rating was downgraded from ‘A3’ to ‘Ba1’ and underlying rating was downgraded from ‘A3’ to ‘Ba1’. According to Moody’s, all California tax allocation bond ratings remain on review for possible withdrawal.

2005 Revenue Bonds, Series A

On June 22, 2005, the Commission issued $4,775,000 of revenue bonds with an interest rate of 7.75%. The proceeds were used to finance redevelopment activities to benefit Project No. 1 Redevelopment Area and Central City Redevelopment Area, to fund a reserve fund, and to pay for the costs of issuing the bonds (insurance, underwriter discount, and other costs). Interest is paid semi-annually on April 1 and October 1 with a final maturity date of October 1, 2029. At June 30, 2012, the unamortized premium outstanding was $290,295 and the total principal outstanding was $4,145,000.

57


(Continued)

At June 30, 2012, the annual requirements to repay the outstanding indebtedness were as follows:

Principal Interest2012-2013 160,000$ 315,038$ 2013-2014 170,000 302,250 2014-2015 190,000 288,300 2015-2016 200,000 273,188 2016-2017 215,000 257,106 2017-2022 1,350,000 998,588 2022-2027 1,110,000 488,638 2027-2032 750,000 90,288

Totals 4,145,000$ 3,013,396$

Pledged Revenue

The City pledged, as security for bonds issued, either directly or through the Financing Authority, a portion of tax increment revenue (including Low and Moderate Income Housing set-aside and pass through allocations) that it receives. The bonds issued were to provide financing for various capital projects, accomplish Low and Moderate Income Housing projects and to defease previously issued bonds. Assembly Bill 1X 26 provided that upon dissolution of the Redevelopment Agency, property taxes allocated to redevelopment agencies no longer are deemed tax increment but rather property tax revenues and will be allocated first to successor agencies to make payments on the indebtedness incurred by the dissolved redevelopment agency. Total principal and interest remaining on the debt is $26,575,637 with annual debt service requirements as indicated above. For the current year, the total property tax revenue recognized by the City and Successor Agency for the payment of indebtedness incurred by the dissolved redevelopment agency was $1,820,730 and the debt service obligation on the bonds was $1,809,145.

Bear Sterns Note Payable

On July 2, 2002, the Commission entered into a loan agreement with Bear Stearns Commercial Mortgage, Inc. for the development of the Los Jardines Shopping Center. The loan amount is $10,000,000 with an interest rate of 6.85% per annum. Monthly payments amount to $65,526 on the first day of each calendar month beginning August 2002 and ending June 2012. The balance of the promissory note at June 30, 2012, is $8,716,675. At June 30, 2012, the annual requirements to repay the outstanding indebtedness were as follows:

Principal

2012-2013 8,716,675$

58


(Continued)

e. Insurance

The Successor Agency is covered under the City of Bell Garden’s insurance policies. Therefore, the limitation and self-insured retentions applicable to the City also apply to the Successor Agency. Additional information as to coverage and self-insured retentions can be found in Note 10.

f. Subsequent Events

Assembly Bill 1484 established a requirement for the successor agency to remit to the County auditor-controller three payments as determined by the auditor-controller which consist of a payment to be made in July 2012 for taxing entities’ share of December 2011 property tax distribution to redevelopment agency/successor agency, a payment to be made in November 2012 related to Low-Moderate Income Housing Fund Due Diligence Review for unencumbered cash, and a payment to be made in April 2013 related to the other Redevelopment Funds Due Diligence Review for unencumbered cash. As of the date of the report the payment in July 2012 was made in the amount of $515,157. In addition, the Low-Moderate Income Housing Due Diligence Review resulted in an amount due of $229,706 and the other Redevelopment Funds Due Diligence Review resulted in no amount due to the County, neither of which have been confirmed by the Department of Finance.

59


COMBINING BALANCE SHEETNONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2012

Assets:Cash and investments 17,001$ 7$ -$ 69,460$ Receivables:

Accounts - - - - Notes and loans - - - - Accrued interest - - 23 -

Due from other governments - - 24,981 29

Total Assets 17,001$ 7$ 25,004$ 69,489$

Liabilities and Fund Balances:Liabilities:Accounts payable -$ -$ -$ -$ Accrued liabilities - - - - Deferred revenues - - 8,063 - Unearned revenues 15,000 - - - Due to other funds - - 10,182 -

Total Liabilities 15,000 - 18,245 -

Fund Balances: Restricted for: Public safety - 7 6,759 69,489 Community development - - - - Parks and recreation 2,001 - - - Public works - - - - Capital Projects - - - - Assigned to: Post employment benefits - - - - Unassigned - - - -

Total Fund Balances 2,001 7 6,759 69,489

Total Liabilities and Fund Balances 17,001$ 7$ 25,004$ 69,489$

Special Revenue Funds

Recreation CLEEP Grant Public Safety Augmentation

COPS State (SLESF)

60


COMBINING BALANCE SHEETNONMAJOR GOVERNMENTAL FUNDSJUNE 30, 2012

Assets:Cash and investmentsReceivables:

AccountsNotes and loansAccrued interest

Due from other governments

Total Assets

Liabilities and Fund Balances:Liabilities:Accounts payableAccrued liabilitiesDeferred revenuesUnearned revenuesDue to other funds

Total Liabilities

Fund Balances: Restricted for: Public safety Community development Parks and recreation Public works Capital Projects Assigned to: Post employment benefits Unassigned

Total Fund Balances

Total Liabilities and Fund Balances

(Continued)

12,662$ 671,129$ 772,288$ -$

- - - - - - - 1,720,860 2 42 126 -

131,952 91,808 113,274 103,427

144,616$ 762,979$ 885,688$ 1,824,287$

29,152$ 24,989$ 166,354$ 42,128$ 1,259 - 456 -

- - - 1,766,928 - - - - - - - 68,998

30,411 24,989 166,810 1,878,054

- 737,990 - - - - - - - - - -

114,205 - 718,878 - - - - -

- - - - - - - (53,767)

114,205 737,990 718,878 (53,767)

144,616$ 762,979$ 885,688$ 1,824,287$


State Gas Tax Asset

Forfeiture Waste

Management

Community Development Block Grant

61






Total Assets


Total Liabilities


Total Fund Balances


180,919$ 119,968$ 83,925$ 128,625$

- - - - - - - - - 61 3 6 - - 13,064 6,315

180,919$ 120,029$ 96,992$ 134,946$

83,807$ 120,029$ 42$ 5,987$ 1,517 - - 44

- - - 6,315 - - - - - - - -

85,324 120,029 42 12,346

- - - - - - - - - - - -

95,595 - 96,950 122,600 - - - -

- - - - - - - -

95,595 - 96,950 122,600

180,919$ 120,029$ 96,992$ 134,946$


Proposition "A"

Proposition "C"

Air Quality Improvement

Recycling Grants

62






Total Assets


Total Liabilities


Total Fund Balances


(Continued)

442,810$ -$ 315,907$ -$

- - 8,089 - 747,797 - - -

36 - 119 - - - - -

1,190,643$ -$ 324,115$ -$

-$ -$ -$ -$ - - 99 -

747,797 - - - - - - - - - - -

747,797 - 99 -

- - - - 442,846 - - -

- - - - - - - - - - - -

- - 324,016 - - - - -

442,846 - 324,016 -

1,190,643$ -$ 324,115$ -$


Academic Pursuit

Separated Employee Benefits

Post Employment

Benefits OJJDP Boxing

63






Total Assets


Total Liabilities


Total Fund Balances


1,960$ 325,079$ 25,205$ 12,370$

- 41,680 - - - - - - - - - - - - 11,791 -

1,960$ 366,759$ 36,996$ 12,370$

-$ 337,565$ 16,548$ 3,683$ - - - - - - 4,165 - - - - 8,643 - - - -

- 337,565 20,713 12,326

1,960 - 16,283 44 - - - - - - - - - 29,194 - - - - - -

- - - - - - - -

1,960 29,194 16,283 44

1,960$ 366,759$ 36,996$ 12,370$


COPS Tech Measure R ABC Grant JAG Grants

64






Total Assets


Total Liabilities


Total Fund Balances


(Continued)

Capital Projects Fund

-$ -$ 167,542$ 21,566$

- - - - - - - - - - - - - 103,554 - 1,888

-$ 103,554$ 167,542$ 23,454$

-$ -$ 48,074$ -$ - - - - - - - - - - - - - 103,554 - -

- 103,554 48,074 -

- - - - - - - - - - 119,468 - - - - - - - - 23,454

- - - - - - - -

- - 119,468 23,454

-$ 103,554$ 167,542$ 23,454$


2008 State Homeland

Security Grant COPS 2010

Grant Anson Ford

Park

Transportation Development

Act

65






Total Assets


Total Liabilities


Total Fund Balances


Debt Service Fund

-$ -$ -$ 3,368,423$

20,000 - - 69,769 - - - 2,468,657 - - - 418

575,076 - - 1,177,159

595,076$ -$ -$ 7,084,426$

400,642$ -$ -$ 1,279,000$ - - - 3,375

418,224 - - 2,951,492 - - - 23,643

38,925 - - 221,659

857,791 - - 4,479,169

- - - 832,532 - - - 442,846 - - - 121,469 - - - 1,177,422 - - - 23,454

- - - 324,016 (262,715) - - (316,482)

(262,715) - - 2,605,257

595,076$ -$ -$ 7,084,426$

Capital Projects Funds

Total Nonmajor Governmental

Funds

Capital Improvement

Projects



66


67


COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCESNONMAJOR GOVERNMENTAL FUNDSYEAR ENDED JUNE 30, 2012

Revenues:Taxes -$ -$ -$ -$ Intergovernmental - - 94,209 100,000 Charges for services - - 563 - Use of money and property 1 - - 166 Fines and forfeitures - - - - Contributions - - - - Miscellaneous 2,000 - - -

Total Revenues 2,001 - 94,772 100,166

Expenditures:Current: General government - - - - Public safety - - 350,989 - Community development - - - - Parks and recreation - - - - Public works - - - - Capital outlay - - - - Debt service: Principal retirement - - - - Interest and fiscal charges - - - -

Total Expenditures - - 350,989 -

Excess (Deficiency) of Revenues Over (Under) Expenditures 2,001 - (256,217) 100,166

Other Financing Sources (Uses):Transfers in - - 256,217 - Transfers out - - - (100,000)

Total Other Financing Sources (Uses) - - 256,217 (100,000)

Extraordinary gain/(loss) on dissolutionof redevelopment agency (Note 15) - - - -

Net Change in Fund Balances 2,001 - - 166

Fund Balances:Beginning of year - 7 6,759 69,323

End of Year 2,001$ 7$ 6,759$ 69,489$


Recreation CLEEP Grant Public Safety Augmentation

COPS State (SLESF)

68



Revenues:TaxesIntergovernmentalCharges for servicesUse of money and propertyFines and forfeituresContributionsMiscellaneous

Total Revenues

Expenditures:Current: General government Public safety Community development Parks and recreation Public worksCapital outlayDebt service: Principal retirement Interest and fiscal charges

Total Expenditures

Excess (Deficiency) of Revenues Over (Under) Expenditures

Other Financing Sources (Uses):Transfers inTransfers out

Total Other Financing Sources (Uses)

Extraordinary gain/(loss) on dissolutionof redevelopment agency (Note 15)

Net Change in Fund Balances

Fund Balances:Beginning of year

End of Year

(Continued)

-$ -$ 2,041,583$ -$ 1,302,153 - - 1,033,541

- - - - - 1,029 1,313 - - 217,312 - - - - - - - - - -

1,302,153 218,341 2,042,896 1,033,541

- - - - - 182,833 - - - - - 368,236 - - - -

1,100,857 - 2,378,375 - 124,659 24,989 - 162,016

- - - 371,000 - - - 182,735

1,225,516 207,822 2,378,375 1,083,987

76,637 10,519 (335,479) (50,446)

- - - - - - - -

- - - -

- - - -

76,637 10,519 (335,479) (50,446)

37,568 727,471 1,054,357 (3,321)

114,205$ 737,990$ 718,878$ (53,767)$


State Gas Tax

Asset Forfeiture

Waste Management

Community Development Block Grant

69




Total Revenues


Total Expenditures







End of Year

686,838$ 570,478$ -$ -$ 144,222 - 117,966 47,424

- 97,040 - - 943 - 76 156

- - - - - - - - - - - -

832,003 667,518 118,042 47,580

- - - - - - - - - - - - - - - -

747,547 505,295 18,296 19,744 - 58,260 - -

- - - - - - - -

747,547 563,555 18,296 19,744

84,456 103,963 99,746 27,836

- 454,823 - 146,664 (454,823) - - -

(454,823) 454,823 - 146,664

- - - -

(370,367) 558,786 99,746 174,500

465,962 (558,786) (2,796) (51,900)

95,595$ -$ 96,950$ 122,600$


Proposition "A"

Proposition "C"

Air Quality Improvement

Recycling Grants

70




Total Revenues


Total Expenditures







End of Year

(Continued)

-$ -$ -$ -$ - - - - - - 54,424 -

676 - 830 - - - - - - - - -

12,772 - - -

13,448 - 55,254 -

- - 509,529 - - - - - - - - - - - - - - - - - - - - -

- - - - - - - -

- - 509,529 -

13,448 - (454,275) -

- 215,024 - - - - - (270)

- 215,024 - (270)

- - - -

13,448 215,024 (454,275) (270)

429,398 (215,024) 778,291 270

442,846$ -$ 324,016$ -$


Academic Pursuit

Separated Employee Benefits

Post Employment

Benefits OJJDP Boxing

71




Total Revenues


Total Expenditures







End of Year

-$ -$ -$ -$ - 424,522 33,121 16,955 - - - - - 496 15 31 - - - - - - - - - - - -

- 425,018 33,136 16,986

- - - - - - 17,018 - - - - - - - - - - 75,025 - - - 793,410 - 16,955

- - - - - - - -

- 868,435 17,018 16,955

- (443,417) 16,118 31

- - - - - - - -

- - - -

- - - -

- (443,417) 16,118 31

1,960 472,611 165 13

1,960$ 29,194$ 16,283$ 44$


COPS Tech Measure R ABC Grant JAG Grants

72




Total Revenues


Total Expenditures







End of Year

(Continued)

Capital Projects Fund

-$ -$ -$ -$ 99,415 390,019 - 22,655

- - 116,279 - - - 216,820 7 - - - - - - - - - - 74,253 -

99,415 390,019 407,352 22,662

- - - - - 358,723 - - - - - - - - 184,480 - - - - -

99,415 - 44,558 -

- - - - - - - -

99,415 358,723 229,038 -

- 31,296 178,314 22,662

- 44,584 - - - - (182,700) -

- 44,584 (182,700) -

- - - -

- 75,880 (4,386) 22,662

- (75,880) 123,854 792

-$ -$ 119,468$ 23,454$


2008 State Homeland

Security Grant COPS 2010

Grant Anson Ford

Park

Transportation Development

Act

73




Total Revenues


Total Expenditures







End of Year

-$ -$ 1,820,730$ 5,119,629$ 840,435 - - 4,666,637

- - - 268,306 - 11,362 46,697 280,618 - - - 217,312

15,000 - - 15,000 60,000 - - 149,025

915,435 11,362 1,867,427 10,716,527

- 367,229 132,700 1,009,458 - - - 909,563 - 1,469,839 - 1,838,075 - - - 184,480 - - - 4,845,139

737,563 - - 2,061,825

- - 887,280 1,258,280 - - 1,219,927 1,402,662

737,563 1,837,068 2,239,907 13,509,482

177,872 (1,825,706) (372,480) (2,792,955)

- - - 1,117,312 - - - (737,793)

- - - 379,519

- 54,920,519 (11,401,475) 43,519,044

177,872 53,094,813 (11,773,955) 41,105,608

(440,587) (53,094,813) 11,773,955 (38,500,351)

(262,715)$ -$ -$ 2,605,257$

Total Nonmajor

Governmental Funds

Debt Service Fund Capital Projects Funds

Capital Improvement

Projects



74


BUDGETARY COMPARISON SCHEDULEPUBLIC SAFETY AUGMENTATIONYEAR ENDED JUNE 30, 2012



Budgetary Fund Balance, July 1 6,759$ 6,759$ 6,759$ -$ Resources (Inflows):Intergovernmental 95,700 95,700 94,209 (1,491) Charges for services 1,872 1,872 563 (1,309) Transfers in 244,022 244,022 256,217 12,195

Amounts Available for Appropriations 348,353 348,353 357,748 9,395

Charges to Appropriations (Outflow):Public safety 289,722 289,722 350,989 (61,267)

Total Charges to Appropriations 289,722 289,722 350,989 (61,267)

Budgetary Fund Balance, June 30 58,631$ 58,631$ 6,759$ (51,872)$

75


BUDGETARY COMPARISON SCHEDULECOPS STATE (SLESF)YEAR ENDED JUNE 30, 2012



Budgetary Fund Balance, July 1 69,323$ 69,323$ 69,323$ -$ Resources (Inflows):Intergovernmental - - 100,000 100,000 Use of money and property 300 300 166 (134)


Charges to Appropriations (Outflow):Transfers out - - 100,000 (100,000)

Total Charges to Appropriations - - 100,000 (100,000)

Budgetary Fund Balance, June 30 69,623$ 69,623$ 69,489$ (134)$

76


BUDGETARY COMPARISON SCHEDULESTATE GAS TAXYEAR ENDED JUNE 30, 2012



Budgetary Fund Balance, July 1 37,568$ 37,568$ 37,568$ -$ Resources (Inflows):Intergovernmental 1,254,823 1,254,823 1,302,153 47,330 Use of money and property 500 500 - (500)

Amounts Available for Appropriations 1,292,891 1,292,891 1,339,721 46,830

Charges to Appropriations (Outflow):Public works 1,080,090 1,150,835 1,100,857 49,978 Capital outlay 6,500 173,085 124,659 48,426


Budgetary Fund Balance, June 30 206,301$ (31,029)$ 114,205$ 145,234$

77


BUDGETARY COMPARISON SCHEDULEASSET FORFEITUREYEAR ENDED JUNE 30, 2012



Budgetary Fund Balance, July 1 727,471$ 727,471$ 727,471$ -$ Resources (Inflows):Use of money and property 1,430 1,430 1,029 (401) Fines and forfeitures 75,000 75,000 217,312 142,312


Charges to Appropriations (Outflow):Public safety 16,200 256,200 182,833 73,367 Capital outlay - - 24,989 (24,989)

Total Charges to Appropriations 16,200 256,200 207,822 48,378

Budgetary Fund Balance, June 30 787,701$ 547,701$ 737,990$ 190,289$

78


BUDGETARY COMPARISON SCHEDULEWASTE MANAGEMENTYEAR ENDED JUNE 30, 2012



Budgetary Fund Balance, July 1 1,054,357$ 1,054,357$ 1,054,357$ -$ Resources (Inflows):Taxes 2,083,324 2,083,324 2,041,583 (41,741) Use of money and property 3,000 3,000 1,313 (1,687)

Amounts Available for Appropriations 3,140,681 3,140,681 3,097,253 (43,428)

Charges to Appropriations (Outflow):Public works 2,428,390 2,428,390 2,378,375 50,015



79


BUDGETARY COMPARISON SCHEDULECOMMUNITY DEVELOPMENT BLOCK GRANTYEAR ENDED JUNE 30, 2012



Budgetary Fund Balance, July 1 (3,321)$ (3,321)$ (3,321)$ -$ Resources (Inflows):Intergovernmental 1,100,328 1,100,328 1,033,541 (66,787)

Amounts Available for Appropriations 1,097,007 1,097,007 1,030,220 (66,787)

Charges to Appropriations (Outflow):Community development 532,358 467,530 368,236 99,294 Capital outlay - 93,779 162,016 (68,237) Debt service: Principal retirement 371,000 371,000 371,000 - Interest and fiscal charges 182,735 182,735 182,735 -


Budgetary Fund Balance, June 30 10,914$ (18,037)$ (53,767)$ (35,730)$

80


BUDGETARY COMPARISON SCHEDULEPROPOSITION "A"YEAR ENDED JUNE 30, 2012



Budgetary Fund Balance, July 1 465,962$ 465,962$ 465,962$ -$ Resources (Inflows):Taxes 646,937 646,937 686,838 39,901 Intergovernmental 75,000 75,000 144,222 69,222 Use of money and property - - 943 943

Amounts Available for Appropriations 1,187,899 1,187,899 1,297,965 110,066

Charges to Appropriations (Outflow):Public works 786,493 786,493 747,547 38,946 Transfers out - - 454,823 (454,823)

Total Charges to Appropriations 786,493 786,493 1,202,370 (415,877)


81


BUDGETARY COMPARISON SCHEDULEPROPOSITION "C"YEAR ENDED JUNE 30, 2012



Budgetary Fund Balance, July 1 (558,786)$ (558,786)$ (558,786)$ -$ Resources (Inflows):Taxes 536,617 536,617 570,478 33,861 Charges for services 75,088 75,088 97,040 21,952 Use of money and property 1,400 1,400 - (1,400) Transfers in - - 454,823 454,823


Charges to Appropriations (Outflow):Public works 494,668 494,668 505,295 (10,627) Capital outlay - 105,000 58,260 46,740


Budgetary Fund Balance, June 30 (440,349)$ (545,349)$ -$ 545,349$

82


BUDGETARY COMPARISON SCHEDULEAIR QUALITY IMPROVEMENTYEAR ENDED JUNE 30, 2012



Budgetary Fund Balance, July 1 (2,796)$ (2,796)$ (2,796)$ -$ Resources (Inflows):Intergovernmental 52,500 52,500 117,966 65,466 Use of money and property - - 76 76


Charges to Appropriations (Outflow):Public works 11,000 19,000 18,296 704 Capital outlay 60,000 52,000 - 52,000


Budgetary Fund Balance, June 30 (21,296)$ (21,296)$ 96,950$ 118,246$

83


BUDGETARY COMPARISON SCHEDULERECYCLING GRANTSYEAR ENDED JUNE 30, 2012



Budgetary Fund Balance, July 1 (51,900)$ (51,900)$ (51,900)$ -$ Resources (Inflows):Intergovernmental 14,149 14,149 47,424 33,275 Use of money and property 700 700 156 (544) Transfers in - - 146,664 146,664

Amounts Available for Appropriations (37,051) (37,051) 142,344 179,395

Charges to Appropriations (Outflow):Public works 14,200 14,200 19,744 (5,544)


Budgetary Fund Balance, June 30 (51,251)$ (51,251)$ 122,600$ 173,851$

84


BUDGETARY COMPARISON SCHEDULEACADEMIC PURSUITYEAR ENDED JUNE 30, 2012



Budgetary Fund Balance, July 1 429,398$ 429,398$ 429,398$ -$ Resources (Inflows):Use of money and property 1,200 1,200 676 (524) Miscellaneous 10,000 10,000 12,772 2,772



85


BUDGETARY COMPARISON SCHEDULEPOST EMPLOYMENT BENEFITSYEAR ENDED JUNE 30, 2012



Budgetary Fund Balance, July 1 778,291$ 778,291$ 778,291$ -$ Resources (Inflows):Charges for services - 45,000 54,424 9,424 Use of money and property 2,000 2,000 830 (1,170)


Charges to Appropriations (Outflow):General government 400,000 400,000 509,529 (109,529)



86


BUDGETARY COMPARISON SCHEDULEMEASURE RYEAR ENDED JUNE 30, 2012



Budgetary Fund Balance, July 1 472,611$ 472,611$ 472,611$ -$ Resources (Inflows):Intergovernmental 402,466 402,466 424,522 22,056 Use of money and property - 650 496 (154)


Charges to Appropriations (Outflow):Public works 89,500 89,500 75,025 14,475 Capital outlay - 886,747 793,410 93,337


Budgetary Fund Balance, June 30 785,577$ (100,520)$ 29,194$ 129,714$

87


BUDGETARY COMPARISON SCHEDULEABC GRANTYEAR ENDED JUNE 30, 2012



Budgetary Fund Balance, July 1 165$ 165$ 165$ -$ Resources (Inflows):Intergovernmental - - 33,121 33,121 Use of money and property - - 15 15

Amounts Available for Appropriations 165 165 33,301 33,136

Charges to Appropriation (Outflow):Public safety - 37,734 17,018 20,716

Total Charges to Appropriations - 37,734 17,018 20,716

Budgetary Fund Balance, June 30 165$ (37,569)$ 16,283$ 53,852$

88


BUDGETARY COMPARISON SCHEDULEJAG GRANTSYEAR ENDED JUNE 30, 2012



Budgetary Fund Balance, July 1 13$ 13$ 13$ -$ Resources (Inflows):Intergovernmental 27,376 27,376 16,955 (10,421) Use of money and property - - 31 31

Amounts Available for Appropriations 27,389 27,389 16,999 (10,390)

Charges to Appropriation (Outflow):Capital outlay - 56,864 16,955 39,909

Total Charges to Appropriations - 56,864 16,955 39,909

Budgetary Fund Balance, June 30 27,389$ (29,475)$ 44$ 29,519$

89


BUDGETARY COMPARISON SCHEDULE2008 STATE HOMELAND SECURITY GRANTYEAR ENDED JUNE 30, 2012



Budgetary Fund Balance, July 1 -$ -$ -$ -$ Resources (Inflows):Intergovernmental - - 99,415 99,415

Amounts Available for Appropriations - - 99,415 99,415

Charges to Appropriation (Outflow):Capital outlay - 50,000 99,415 (49,415)

Total Charges to Appropriations - 50,000 99,415 (49,415)

Budgetary Fund Balance, June 30 -$ (50,000)$ -$ 50,000$

90


BUDGETARY COMPARISON SCHEDULECOPS 2010 GRANTSYEAR ENDED JUNE 30, 2012



Budgetary Fund Balance, July 1 (75,880)$ (75,880)$ (75,880)$ -$ Resources (Inflows):Intergovernmental 416,966 416,966 390,019 (26,947) Transfers in - - 44,584 44,584


Charges to Appropriations (Outflow):Public safety 424,201 424,201 358,723 65,478


Budgetary Fund Balance, June 30 (83,115)$ (83,115)$ -$ 83,115$

91


BUDGETARY COMPARISON SCHEDULEANSON FORD PARKYEAR ENDED JUNE 30, 2012



Budgetary Fund Balance, July 1 123,854$ 123,854$ 123,854$ -$ Resources (Inflows):Charges for services 101,516 101,516 116,279 14,763 Use of money and property 150,000 150,000 216,820 66,820 Miscellaneous - - 74,253 74,253


Charges to Appropriations (Outflow):Parks and recreation - 178,535 184,480 (5,945) Capital outlay - 41,165 44,558 (3,393) Transfers out - - 182,700 (182,700)

Total Charges to Appropriations - 219,700 411,738 (192,038)


92


BUDGETARY COMPARISON SCHEDULETRANSPORTATION DEVELOPMENT ACTYEAR ENDED JUNE 30, 2012



Budgetary Fund Balance, July 1 792$ 792$ 792$ -$ Resources (Inflows):Intergovernmental 22,655 22,655 22,655 - Use of money and property - - 7 7

Amounts Available for Appropriations 23,447 23,447 23,454 7

Charges to Appropriations (Outflow):Capital outlay - 22,000 - 22,000

Total Charges to Appropriations - 22,000 - 22,000


93


BUDGETARY COMPARISON SCHEDULECAPITAL IMPROVEMENT PROJECTSYEAR ENDED JUNE 30, 2012



Budgetary Fund Balance, July 1 (440,587)$ (440,587)$ (440,587)$ -$ Resources (Inflows):Intergovernmental 1,993,639 2,004,639 840,435 (1,164,204) Contributions - - 15,000 15,000 Miscellaneous - - 60,000 60,000

Amounts Available for Appropriations 1,553,052 1,564,052 474,848 (1,089,204)

Charges to Appropriations (Outflow):Capital outlay - 1,674,827 737,563 937,264

Total Charges to Appropriations - 1,674,827 737,563 937,264

Budgetary Fund Balance, June 30 1,553,052$ (110,775)$ (262,715)$ (151,940)$

94


BUDGETARY COMPARISON SCHEDULECOMMUNITY DEVELOPMENT COMMISSION - CAPITAL PROJECTSYEAR ENDED JUNE 30, 2012



Budgetary Fund Balance, July 1 (53,094,813)$ (53,094,813)$ (53,094,813)$ -$ Resources (Inflows):Use of money and property 270,515 270,515 11,362 (259,153) Extraordinary gain on dissolution

of redevelopment agency - - 54,920,519 54,920,519

Amounts Available for Appropriations (52,824,298) (52,824,298) 1,837,068 54,661,366

Charges to Appropriations (Outflow):General government 557,386 557,386 367,229 190,157 Community development 4,608,649 4,608,649 1,469,839 3,138,810

Total Charges to Appropriations 5,166,035 5,166,035 1,837,068 3,328,967

Budgetary Fund Balance, June 30 (57,990,333)$ (57,990,333)$ -$ 57,990,333$

95


BUDGETARY COMPARISON SCHEDULECOMMUNITY DEVELOPMENT COMMISSION - DEBT SERVICEYEAR ENDED JUNE 30, 2012



Budgetary Fund Balance, July 1 11,773,955$ 11,773,955$ 11,773,955$ -$ Resources (Inflows):Taxes 3,809,050 3,809,050 1,820,730 (1,988,320) Use of money and property 60,000 60,000 46,697 (13,303)

Amounts Available for Appropriations 15,643,005 15,643,005 13,641,382 (2,001,623)

Charges to Appropriations (Outflow):General government 4,871,649 4,871,649 132,700 4,738,949 Debt service: Principal retirement 962,607 962,607 887,280 75,327 Interest and fiscal charges 1,632,848 1,632,848 1,219,927 412,921 Extraordinary loss on dissolution

of redevelopment agency - - 11,401,475 (11,401,475)

Total Charges to Appropriations 7,467,104 7,467,104 13,641,382 (6,174,278)

Budgetary Fund Balance, June 30 8,175,901$ 8,175,901$ -$ (8,175,901)$

96

Statistical Section This part of the City of Bell Gardens comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the government’s overall financial health. Contents Financial Trends These schedules contain trend information to help the reader understand how the government’s financial performance and well-being have changed over time. Revenue Capacity These schedules contain information to help the reader asses the government’s most significant local revenue source, the property tax. Debt Capacity These schedules present information to help the reader assess the afford- ability of the government’s current levels of outstanding debt and the government’s ability to issue additional debt in the future. Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment with in which the government’s financial activities take place. Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the government’s financial report relates to the services that the government provides and the activities it performs. Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year.

97


98

City of Bell GardensNet Assets by Component, Last Five Fiscal Years(accrual basis of accounting)

2008 2009 2010 2011 2012

Governmental activitiesInvested in capital assets, net of related debt 58,383,063$ 72,643,986$ 73,967,264$ 74,822,075$ 114,874,209$ Restricted 17,172,343 17,896,542 17,088,677 14,700,630 6,518,912 Unrestricted 32,303,477 12,851,973 10,390,101 7,457,831 39,268,190

Total governmental activities net assets 107,858,883$ 103,392,501$ 101,446,042$ 96,980,536$ 160,661,311$

Business-type activitiesInvested in capital assets, net of related debt 584,837$ 2,816,150$ 3,429,948$ 3,480,128$ 4,307,348$ Restricted 400,688 398,665 398,434 399,355 416,340 Unrestricted 985,558 (357,093) 397,551 251,365 39,308

Total business-type activities net assets 1,971,083$ 2,857,722$ 4,225,933$ 4,130,848$ 4,762,996$

Primary governmentInvested in capital assets, net of related debt 58,967,900$ 75,460,136$ 77,397,212$ 78,302,203$ 119,181,557$ Restricted 17,573,031 18,295,207 17,487,111 15,099,985 6,935,252 Unrestricted 33,289,035 12,494,880 10,787,652 7,709,196 39,307,498

Total primary government net assets 109,829,966$ 106,250,223$ 105,671,975$ 101,111,384$ 165,424,307$

Fiscal Year

The City of Bell Gardens has elected to show only five years of data for this schedule99

City of Bell GardensChanges in Net Assets, Last Five Fiscal Years(accrual basis of accounting)

2008 2009 2010 2011 2012ExpensesGovernmental activities:

General government 5,873,384$ 9,601,844$ 10,175,559$ 8,821,722$ 9,171,894$ Public safety 12,807,592 13,071,462 12,965,767 12,393,794 12,740,622 Public works 1,582,498 1,600,209 1,220,075 2,241,756 2,408,181 Community Development 2,854,086 2,667,195 2,485,134 2,838,313 2,647,386 Recreation 8,306,894 10,071,329 9,941,721 10,146,753 10,178,663 Interest and fiscal charges 2,209,835 4,996,806 4,857,978 1,972,014 1,164,716

Total governmental activities expenses 33,634,289 42,008,845 41,646,234 38,414,352 38,311,462 Business-type activities:

Water 1,553,849 1,728,215 1,460,206 1,532,393 1,344,353 Golf Course 365,164 335,189 251,694 216,584 241,823

Total business-type activities expenses 1,919,013 2,063,404 1,711,900 1,748,977 1,586,176 Total primary government expenses 35,553,302$ 44,072,249$ 43,358,134$ 40,163,329$ 39,897,638$

Program Revenues Governmental activities:

Charges for services: General government 254,945 369,110 196,825 134,597 134,994 Public safety 535,915 601,491 421,681 731,516 705,874 Parks and recreation 305,671 245,960 244,763 279,769 313,946 Public works 273,563 258,147 516,878 505,628 368,433 Operating grants and contributions 1,460,457 1,905,933 3,159,241 2,146,983 5,360,465 Capital grants and contributions 1,129,689 2,524,654 3,791,143 1,839,711 2,563,187

Total governmental activities program revenues 3,960,240 5,905,295 8,330,531 5,638,204 9,446,899 Business-type activities:

Charges for services: Water 1,434,590 1,257,433 1,235,559 1,249,287 1,261,619 Golf Course 185,643 199,096 186,433 152,569 159,898

Total business-type activities program revenues 1,620,233 1,456,529 1,421,992 1,401,856 1,421,517 Total primary government program revenues 5,580,473$ 7,361,824$ 9,752,523$ 7,040,060$ 10,868,416$

Fiscal Year


City of Bell GardensChanges in Net Assets, Last Five Fiscal Years(accrual basis of accounting)

2008 2009 2010 2011 2012Net (Expense)/RevenueGovernmental activities (29,674,049)$ (36,103,550)$ (33,315,703)$ (32,776,148)$ (28,864,563)$ Business-type activities (298,780) (591,875) (289,908) (347,121) (164,659) Total primary government net expense (29,972,829)$ (36,695,425)$ (33,605,611)$ (33,123,269)$ (29,029,222)$

General Revenues and Other Changes in Net AssetsGovernmental activities:

TaxesSales taxes 2,187,115$ 4,908,149$ 4,886,712$ 4,696,696$ 2,396,411$ Property taxes 4,650,564 2,086,198 2,030,961 2,321,800 2,844,538 Other taxes 20,062,895 19,188,075 18,661,906 17,853,565 17,401,997

Use of money and property 4,261,200 5,175,607 6,630,950 3,281,827 3,888,527 Others 241,528 167,393 303,354 249,606 66,782,676

Total governmental activities 31,403,302 31,525,422 32,513,883 28,403,494 93,314,149 Business-type activities:

Investment earnings 28,633 10,266 6,778 8,664 27,996 Miscellaneous 9,056 - - - -

Total business-type activities 37,689 10,266 6,778 8,664 27,996 Total primary government 31,440,991$ 31,535,688$ 32,520,661$ 28,412,158$ 93,342,145$

Change in Net AssetsGovernmental activities 1,729,253$ (4,578,128)$ (801,820)$ (4,372,654)$ 64,449,586$ Business-type activities (261,091) (581,609) (283,130) (338,457) (136,663) Total primary government 1,468,162$ (5,159,737)$ (1,084,950)$ (4,711,111)$ 64,312,923$

Fiscal Year

The City of Bell Gardens has elected to show only five years of data for this schedule

101

City of Bell GardensProgram Revenues by Function/Program,Last Five Fiscal Years(accrual basis of accounting)

2008 2009 2010 2011 2012

Function/ProgramGovernmental activities:

General government 294,816$ 791,155$ 819,452$ 207,740$ 203,038$ Public safety 878,321 1,363,986 1,894,446 1,485,166 1,846,946 Public works 1,912,078 2,310,181 4,140,166 2,507,890 3,053,246 Community Development 569,354 1,194,013 1,231,704 1,157,639 3,949,929 Recreation 305,671 245,960 244,763 279,769 393,740

Subtotal governmental activities 3,960,240 5,905,295 8,330,531 5,638,204 9,446,899 Business-type activities:

Water 1,434,590 1,257,433 1,235,559 1,249,287 1,261,619 Golf Course 185,643 214,096 186,433 152,569 159,898

Subtotal business-type activities 1,620,233 1,471,529 1,421,992 1,401,856 1,421,517 Total primary government 5,580,473$ 7,376,824$ 9,752,523$ 7,040,060$ 10,868,416$

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arde

nsC

hang

es in

Fun

d B

alan

ces,

Gov

ernm

enta

l Fun

dsLa

st T

en F

isca

l Yea

rs(m

odifi

ed a

ccru

al b

asis

of a

ccou

ntin

g) 2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Oth

er F

inan

cing

Sour

ces

(Use

s)

Bon

ds is

sued

27,7

05,0

00

—

4,77

5,00

0

3,87

0,00

0

—

—

—

—

—

—

Loan

pro

ceed

s—

—

1,

000,

000

3,

433,

420

—

—

—

—

—

—

P

rem

ium

on

bond

s is

sued

—

—

552,

945

—

—

—

—

—

—

—

Loss

on

sale

of p

rope

rty—

(4

86,2

16)

—

—

—

—

—

—

—

—

Pay

men

ts to

esc

row

age

nt(1

3,50

7,32

5)

—

—

—

—

—

—

—

—

—

O

ther

deb

ts is

sued

—

—

—

—

—

566,

580

—

—

—

—

Tran

sfe r

s in

352,

360

215,

345

4,49

6,55

9

569,

062

82,3

42

17

3,78

3

—

1,

636,

628

58

6,07

1

1,

497,

933

Tr

ansf

ers

out

(352

,360

)

(2

15,3

45)

(4,4

96,5

59)

(569

,062

)

(82,

342)

(173

,783

)

—

(3

,103

,184

)

(829

,443

)

(2

,266

,744

)

To

tal o

ther

fina

ncin

gso

urce

s (u

ses)

14,1

97,6

75

(486

,216

)

6,

327,

945

7,

303,

420

—

56

6,58

0

—

(1

,466

,556

)

(243

,372

)

(7

68,8

11)

E

xtra

ordi

nary

gai

n/(lo

ss)

on d

isso

lutio

n of

Red

Ag

—

—

—

—

—

—

—

—

—

43,5

19,0

44N

et c

hang

e in

fund

bal

ance

s11

,822

,661

$

(1

,289

,644

)$

(762

,221

)$

4,36

5,81

5$

3,29

7,25

5$

(914

,867

)$

(3

,541

,521

)$

(3

,117

,677

)$

(1,1

19,6

04)

$

40

,332

,425

$

Deb

t ser

vice

as

a p

erce

ntag

e of

non

capi

tal

exp

endi

ture

s8.

43%

6.35

%7.

79%

10%

10.2

8%10

.32%

19.4

0%19

.64%

10.8

3%9.

49%

Fisc

al Y

ear

105

City of Bell GardensTax Revenues by Source, Governmental FundsLast Ten Fiscal Years(modified accrual basis of accounting)

Fiscal PropertyYear Property Sales & Use Occupancy Franchise Transfer Other Total

2003 2,556,912$ 1,399,219$ 104,458$ 287,042$ 40,871$ 9,330,527$ 13,719,029$ 2004 2,825,297 1,451,529 152,172 322,076 51,618 10,635,087 15,437,779 2005 3,142,991 1,559,831 14,779 331,301 53,701 11,518,392 16,620,995 2006 4,121,469 1,798,188 203,253 372,002 59,955 12,990,223 19,545,090 2007 4,338,039 1,971,556 210,541 377,235 27,031 14,479,837 21,404,239 2008 5,375,177 2,172,279 185,061 366,072 25,784 14,615,223 22,739,596 2009 6,023,238 2,155,134 204,761 414,256 24,163 16,525,839 25,347,391 2010 5,588,240 1,962,040 187,820 323,941 15,858 16,739,536 24,817,435 2011 4,955,009 2,150,865 223,480 517,145 23,999 16,235,880 24,106,378 2012 4,730,399 2,390,885 238,104 518,889 14,738 14,971,352 22,864,367

Change85.0% 70.9% 127.9% 80.8% -63.9% 60.5% 66.7% 2003–2012

106

City

of B

ell G

arde

nsAs

sess

ed V

alue

and

Est

imat

ed A

ctua

l Val

ue o

f Tax

able

Pro

pert

yLa

st T

en F

isca

l Yea

rs

Tota

lEs

timat

edTa

xabl

e As

sess

edTo

tal T

axab

leD

irect

Actu

alVa

luea a

s a

Fisc

alR

esid

entia

lC

omm

erci

alIn

dust

rial

Mis

cella

neou

sAs

sess

edTa

xTa

xabl

ePe

rcen

tage

of

Year

Prop

erty

Prop

erty

Prop

erty

Prop

erty

Valu

eR

ate

Valu

eAc

tual

Tax

able

Val

ue

2003

614,

266,

319

$

101,

784,

077

$

10

0,78

2,50

3$

96,6

26,9

42$

913,

459,

841

$

1

9,13

4,59

8$

10

000.

000%

2004

660,

944,

161

106,

300,

730

10

6,85

0,47

9

92,3

74,3

41

966,

469,

711

1

9,66

4,69

7

10

000.

000%

2005

708,

601,

929

115,

433,

535

11

0,15

2,14

9

99,4

42,3

20

1,03

3,62

9,93

3

1

10,3

36,2

99

1000

0.00

0%20

0677

0,42

9,20

9

12

7,66

7,61

0

112,

101,

508

95

,579

,118

1,

105,

777,

445

1

11

,057

,774

10

000.

000%

2007

845,

104,

706

162,

394,

202

12

1,57

6,89

3

104,

513,

313

1,23

3,58

9,11

4

1

12,3

35,8

91

1000

0.00

0%20

0892

4,39

6,83

918

6,59

7,85

313

0,68

4,37

711

3,02

4,31

51,

354,

703,

384

1

13

,547

,034

1000

0.00

0%20

0998

1,73

5,37

420

2,86

7,29

413

6,01

9,84

911

9,83

8,68

11,

440,

461,

198

1

14

,404

,612

1000

0.00

0%20

1098

5,09

5,92

520

9,18

2,39

414

9,47

5,01

313

2,49

7,32

71,

476,

250,

659

1

14

,762

,507

1000

0.00

0%20

1196

3,22

4,29

220

9,53

2,59

614

3,79

6,74

513

5,22

2,93

11,

451,

776,

564

1

14

,517

,766

1000

0.00

0%20

1295

5,51

0,37

9

20

4,21

8,22

9

150,

142,

989

13

7,16

4,65

1

1,

447,

036,

248

1

14

,470

,362

1000

0.00

0%

107

City of Bell GardensDirect and Overlapping Property Tax RatesLast Ten Fiscal Years(rate per $1,000 of assessed value)

General MontebelloObligation Redevelopment Total Los Unified

Fiscal Basic Debt Debt Direct Angeles SchoolYear Rate Service Service Rate County District

2003 1.00 - - 1.00 0.0401 0.0229 2004 1.00 - - 1.00 0.0444 0.0238 2005 1.00 - - 1.00 0.0413 0.0255 2006 1.00 - - 1.00 0.0356 0.0553 2007 1.00 - - 1.00 0.0341 0.0673 2008 1.00 - - 1.00 0.2230 0.0668 2009 1.00 - - 1.00 0.2191 0.0806 2010 1.00 - - 1.00 0.2628 0.0967 2011 1.00 - - 1.00 0.3279 0.0979 2012 1.00 - - 1.00 0.2923 0.1000

Source: LA County Assessor 2002/03 - 2011/12 tax rate table

City Direct Rates

Notes: The city's basic property tax rate may be increased only by a majority vote of the city's residents. Rates for debt service are set based on each year's requirements.

108

City of Bell GardensPrincipal Property Tax PayersCurrent Year and Ten Years Ago

Percentage Percentageof Total City of Total City

Taxable Taxable Taxable TaxableAssessed Assessed Assessed Assessed

Taxpayer Value Rank Value Value Rank Value

Bell Gardens Casino LP 61,576,461$ 1 4.26%Florence Eastern Marketplace 36,000,000 2 2.49%Primestor Bell Gardens LLC 34,865,502 3 2.41%Wei Chuan International Inc. 16,142,778 4 1.12% $13,534,389 3 1.48%IIT Bell Gardens Portfolio ILP 15,550,000 5 1.07%Giraffe Properties LLC 8,544,615 6 0.59%Bell Gardens Hospitality LLC 7,543,183 7 0.52%Suva Montalane Investment LLC 6,991,973 8 0.48%James P. & Judy A. Berg 6,991,613 9 0.48% 5,505,919 7 0.60%Caster Garfield Storage LP 6,465,101 10 0.45%Bell Gardens Bicycle Club 34,344,705 1 3.76%Burnham Pacific Operating Partnership 19,323,380 2 2.12%Realty Associates Fund V 8,196,768 4 0.90%Metal Surfaces Inc. 7,691,265 5 0.84%Haig Kelegian 5,740,772 6 0.63%Jamers Parkhouse Trust 5,313,526 8 0.58%Mid Cities Paper Box Company Inc. 4,311,691 10 0.47%Toys R Us 4,772,725 9 0.52%

Total 200,671,226$ 13.87% 108,735,140$ 11.90%

Source: HdL Coren & Cone, Los Angeles County Assessor 2011/12 and 2002/03 Combined Tax Rolls

Bell Gardens Bicycle Club

2012 2003

109

City of Bell GardensProperty Tax Levies and CollectionsLast Ten Fiscal Years

FiscalYear Taxes Levied Collection in

Ended for the Percentage Subsequent PercentJune 30, Fiscal Year Amount of Levy Years Amount of Levy

2003 590,075$ 558,605$ 94.67% * 558,605 94.67%2004 856,577 802,210 93.65% * 802,210 93.65%2005 921,461 866,965 94.09% * 866,965 94.09%2006 992,774 854,809 86.10% * 854,809 86.10%2007 999,229 936,278 93.70% * 936,278 93.70%2008 1,058,324 968,838 91.54% * 968,838 91.54%2009 1,056,288 978,420 92.63% * 978,420 92.63%2010 1,037,815 950,706 91.61% * 950,706 91.61%2011 1,052,661 961,074 91.30% * 961,074 91.30%2012 1,068,495 995,598 93.18% 20,531 1,016,129 95.10%

Sources: Finance Department records and Los Angeles County Assessors Office

* NOTE:The City recieves limited information from the Los Angeles County in relation to tax levies and collections. At the current time the City does not have the resources to retrive the Collection in Subsequent years data for the periods 2003-2010.

Collected within theFiscal Year of the Levy Collections to Date

110

City

of B

ell G

arde

nsTa

xabl

e Sa

les

by C

ateg

ory

Last

Ten

Cal

enda

r Yea

rs

(in

thou

sand

s of

dol

lars

)

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

App

arel

sto

res

4,64

3$

4,

388

$

5,

169

$

5,40

4$

17

,432

$

28

,295

$

26

,831

$

26

,493

$

30

,455

$

33

,084

$

G

ener

al m

erch

andi

se1,

416

1,11

1

1,15

6

1,

139

1,14

9

1,

158

1,25

81,

997

2,17

41,

909

Food

sto

res

14,1

43

14,6

40

15

,298

16

,379

16

,298

16

,434

16,8

1216

,602

16,2

3118

,016

Eat

ing

and

drin

king

est

ablis

hmen

ts23

,821

25

,257

35,0

01

35,2

70

37,8

34

39,6

6340

,005

36,5

9936

,575

37,4

37B

uild

ing

mat

eria

ls a

nd fa

rm to

ols

2,71

7

3,

600

3,

814

5,64

4

5,

803

4,71

74,

193

3,57

63,

275

4,02

8A

uto

deal

ers

and

supp

lies

12,7

66

14,2

87

17

,103

19

,653

17

,021

17

,197

17,5

3915

,313

16,0

3617

,800

Ser

vice

sta

tions

17

,678

16

,365

18,1

58

19,5

69

20,3

58

25,7

8840

,026

29,1

6733

,011

44,7

73O

ther

reta

il st

ores

30,3

56

28,6

60

31

,922

33

,674

33

,290

36

,634

34,1

5030

,569

32,1

3631

,020

All

othe

r out

lets

35,6

23

36,3

93

38

,818

40

,396

43

,164

42

,766

42

,830

36

,229

38,0

0245

,140

Tota

l14

3,16

3$

14

4,70

1$

16

6,43

9$

17

7,12

8$

19

2,34

9$

21

2,65

2$

22

3,64

4$

19

6,54

5$

20

7,89

5$

23

3,20

7$

City

dire

ct s

ales

tax

rate

1.25

%1.

25%

1.25

%1.

25%

1.25

%1.

00%

1.00

%1.

00%

1.00

%1.

00%

Sour

ce: S

tate

of C

alifo

rnia

Boa

rd o

f Equ

aliz

atio

n an

d th

e H

dL C

ompa

nies

Not

e: D

ue to

con

fiden

tialit

y is

sues

, the

nam

es o

f the

top

ten

larg

est r

even

ue p

ayer

s ar

e no

t ava

ilabl

e. T

he c

ateg

orie

s pr

esen

ted

are

inte

nded

to p

rovi

de a

ltern

ativ

e in

form

atio

n re

gard

ing

the

sour

ces

of th

e C

ity's

reve

nue.

Cal

enda

r Yea

r

111

City of Bell GardensDirect and Overlapping Sales Tax RatesLast Ten Fiscal Years

City Los StateFiscal Direct Angeles ofYear Rate County California

2003 1.25 1.00 5.752004 1.25 1.00 6.002005 1.00 1.00 6.252006 1.00 1.00 6.252007 1.00 1.00 6.252008 1.00 1.00 6.252009 1.00 1.50 7.252010 1.00 1.50 7.252011 1.00 1.50 7.252012 1.00 1.50 7.25

Sources: Los Angeles County

Note: The city sales tax rate may be changed only with the approval of the state legislature.

112

City of Bell GardensPrincipal Sales Tax RemittersCurrent Year and Ten Years Ago

Tax Remitter Tax Remitter

Applebees Restaurants Liquor Apco Service StationsAuto Zone Automotive Supply Stores Arco AM PM Mini Mart Service StationsBicycle Club Casino Restaurants Liquor Auto Zone Automotive Supply StoresBig 5 Sporting Goods Sporting Goods/Bike Stores Bicycle Club Casino Restaurants LiquorCalzado Anrea International Shoe Stores Big 5 Sporting Goods Sporting Goods/Bike StoresCasa Leaders HP Home Furnishings Builders Products Light Industrial/PrintersChevron Pronto Lube & Tune Service Stations Chevron Pronto Lube & Tune Service StationsEl Pollo Loco Restaurants No Alcohol El Tapatio Foods Grocery Stores Beer/WineEurocraft Architectural Metal Light Industrial/Printers Factory 2 U Grocery Stores LiquorFactory 2U Family Apparel Enterprise Products Office EquipmentFood 4 Less Grocery Stores Liquor Florence RTM Service StationsIHOP Restaurants No Alcohol Florence Union 76 Service StationsJack in the Box Restaurants No Alcohol Food 4 Less Grocery Stores LiquorMarshalls Family Apparel IHOP Restaurants No AlcoholMc Donalds Restaurants No Alcohol Industrial Forklifts Transportation Non AutoMosier Lumber/Building Materials Jack in the Box Restaurants No AlcoholParkhouse Tire Service Automotive Supply Stores John Lisee Pumps Repair Shop/Hand Tool RentRite Aid Drug Stores La Habra Welding Repair Shop/Hand Tool RentRoss Department Stores Mc Donalds Restaurants No AlcoholSpeedy Fuel Service Stations Mosier Jumber/Building MaterialSuper A Foods Grocery Stores Liquor Parkhouse Tire Service Automotive Supply StoresThrifty Service Stations Rite Aid Drug StoresToys R Us Specialty Stores Super A Foods Grocery Stores LiquorUnion 76 Station Service Stations Toys R Us Specialty StoresValero Service Stations West Coast Accudyne Heavy Industrial

Percent of FY Total Paid by Top 25 Accounts 67.15% 60.86%

Source: Hinderliter, de Llamas & Associates, State Board of Equalization

2012

Business Category

2003

Business Category

113

City

of B

ell G

arde

nsR

atio

s of

Out

stan

ding

Deb

t by

Type

Last

Ten

Fis

cal Y

ears

Bus

ines

s -

Tax

Cer

tific

ates

Wat

erTo

tal

Fisc

alAl

loca

tion

Rev

enue

Not

esof

Rev

enue

Prim

ary

Per

Year

Bon

dsB

onds

Paya

ble

Part

icip

atio

nB

onds

Gov

ernm

ent

Cap

ita

2002

13,7

70,0

00$

-$

-$

-

$

5,

130,

318

$

18,9

00,3

18$

6.28

%42

9

20

0317

,705

,000

-

9,

921,

192

-

5,

032,

144

32,6

58,3

36

10.5

3%72

3

20

0417

,705

,000

-

9,

822,

717

-

4,

965,

000

32,4

92,7

17

9.87

%72

3

20

0517

,285

,000

4,

775,

000

10,7

15,2

72

-

5,24

0,00

0

38

,015

,272

11

.11%

840

2006

16,7

55,0

00

4,77

5,00

0

14

,033

,543

3,

870,

000

-

39

,433

,543

-

869

2007

16,2

10,0

00

4,75

0,00

0

13

,910

,137

3,

805,

000

4,82

0,00

0

43

,495

,137

-

959

2008

15,6

50,0

004,

675,

000

14,0

59,2

813,

735,

000

4,62

5,00

042

,744

,281

11.5

8%94

2

20

0915

,075

,000

4,55

5,00

013

,917

,673

3,66

5,00

04,

425,

000

41,6

37,6

7310

.67%

918

2010

14,4

80,0

004,

430,

000

13,4

58,9

113,

590,

000

4,22

0,00

040

,178

,911

9.72

%85

5

20

1113

,865

,000

4,29

5,00

012

,621

,267

3,51

0,00

04,

010,

000

38,3

01,2

676.

77%

869

2012

-

-

3,

360,

000

3,

430,

000

3,79

5,00

010

,585

,000

1.84

%25

2

Not

es: D

etai

ls re

gard

ing

the

city

's o

utst

andi

ng d

ebt c

an b

e fo

und

in th

e no

tes

to th

e fin

anci

al s

tate

men

ts.

Gov

ernm

enta

l Act

iviti

esty

pe A

ctiv

ities

Perc

enta

geof

Per

sona

lIn

com

e

114

City of Bell GardensRatios of General Bonded Debt OutstandingLast Ten Fiscal Years

Percentage ofGeneral Actual Taxable

Fiscal Obligation Value of PerYear Bonds Total Property Capita

2002 - 13,770,000$ 13,770,000$ 156.27% 304.66 2003 - 17,705,000 17,705,000 193.82% 393.92 2004 - 17,705,000 17,705,000 183.19% 391.19 2005 - 17,285,000 17,285,000 167.23% 380.96 2006 - 16,755,000 16,755,000 151.52% 363.89 2007 - 16,210,000 16,210,000 131.41% 346.66 2008 - 15,650,000 15,650,000 115.52% 334.64 2009 - 15,075,000 15,075,000 104.65% 322.21 2010 - 14,480,000 14,480,000 98.09% 308.07 2011 - 13,865,000 13,865,000 95.50% 314.73 2012 - - - - -

Notes: Details regarding the city's outstanding debt can be found in the notes to the financial statements.

General Bonded Debt Outstanding

RedevelopmentBonds

115

City of Bell GardensDirect and Overlapping Governmental Activities DebtAs of June 30, 2010(dollars in thousands)

EstimatedShare of

Estimated Direct andDebt Percentage Overlapping

Governmental Unit Outstanding* Applicable * Debt*

DIRECT DEBTCity of Bell Gardens Certificates of Participation 3,590,000 100.000% 3,590,000TOTAL DIRECT DEBT

OVERLAPPING DEBT REPAID WITH PROPERTY TAXESLos Angeles CountyLos Angeles County Flood Control District 69,610,000$ 0.118% 82,140$ Metropolitan Water District 264,220,000 0.061% 161,174Cerritos Community College District 112,115,994 0.071% 79,602Los Angeles Community College District 2,665,515,000 0.204% 5,437,651Downey Unified School District 81,275,256 0.215% 174,742Los Angeles Unified School District 11,874,430,000 0.001% 118,744Montebello Unfiied School District 157,730,618 12.142% 19,151,652Los Angeles County Regional Park and Open Space Assessment District 222,660,000 0.118% 262,739TOTAL OVERLAPPING DEBT REPAID WITH PROPERTY TAXES 25,468,444

OVERLAPPING OTHER DEBTLos Angeles County General Fund Obligations 855,695,839 0.118% 1,009,721 Los Angeles County Pension Obligations 118,486,192 0.118% 139,814Los Angeles County Superintendent of Schools Certificate of Particpation 13,185,458 0.118% 15,559Los Angles Unified School District Certificate of Participation 456,780,324 0.001% 4,568Montebello Unified School District Certificates of Participation 15,125,000 12.142% 1,836,478Los Angeles County Sanitation District No. 2 Authority 34,810,192 2.942% 1,024,116TOTAL OVERLAPPING OTHER DEBT 4,030,256 Less: Los Angeles County Certificates of Participation (100% self-supporting) from leasehold revenues on properties in Marina Del Rey (347) NET OVERLAPPING OTHER DEBT 4,029,909

SUBTOTAL-NET OVERLAPPING DEBT 29,498,353.00

TOTAL COMBINED DIRECT AND OVERLAPPING DEBT 33,088,353$

* June 30, 2012 figures not available

Notes: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the city. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City of Bell Gardens. This process recognizes that, when considering the city's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident—and therefore responsible for repaying the debt—of each overlapping government.

116

City

of B

ell G

arde

nsLe

gal D

ebt M

argi

n In

form

atio

nLa

st T

en F

isca

l Yea

rs

Lega

l Deb

t Mar

gin

Cal

cula

tion

for F

isca

l Yea

r 201

2As

sess

ed v

alue

1,44

7,03

6,27

8$

Deb

t lim

it (1

5% o

f ass

esse

d va

lue)

217,

055,

442

Deb

t app

licab

le to

lim

it:

G

ener

al o

blig

atio

n bo

nds

-

Less

: Am

ount

set

asi

de fo

r

r

epay

men

t of g

ener

al

o

blig

atio

n de

bt-

To

tal n

et d

ebt a

pplic

able

to li

mit

-

Lega

l deb

t mar

gin

217,

055,

442

$

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Deb

t lim

it13

7,01

8,97

6$

14

4,97

0,45

7$

15

3,65

5,05

6$

165,

866,

617

$ 18

5,03

8,36

7$

203,

205,

508

$ 21

6,06

9,18

0$

22

1,43

7,59

9$

217,

766,

485

$

217,

055,

442

$

Tota

l net

deb

t app

licab

le to

lim

it-

-

-

-

-

-

-

-

-

-

Lega

l deb

t mar

gin

137,

018,

976

$

144,

970,

457

$

153,

655,

056

$ 16

5,86

6,61

7$

185,

038,

367

$ 20

3,20

5,50

8$

216,

069,

180

$

221,

437,

599

$ 21

7,76

6,48

5$

21

7,05

5,44

2$

Tota

l net

deb

t app

licab

le to

the

limit

as

a pe

rcen

tage

of d

ebt l

imit

0.00

%0.

00%

0.00

%0.

00%

0.00

%0.

00%

0.00

%0.

00%

0.00

%0.

00%

Not

e: U

nder

sta

te fi

nanc

e la

w, t

he c

ity's

out

stan

ding

gen

eral

obl

igat

ion

debt

sho

uld

not e

xcee

d 15

per

cent

of t

otal

ass

esse

d pr

oper

ty v

alue

. The

City

has

no

bond

ed in

debt

edne

ss.

Fisc

al Y

ear

117

City

of B

ell G

arde

nsD

emog

raph

ic a

nd E

cono

mic

Sta

tistic

sLa

st T

en C

alen

dar Y

ears

Pers

onal

Per

Inco

me

Cap

itaC

alen

dar

(thou

sand

sPe

rson

alU

nem

ploy

men

tYe

arPo

pula

tion

of d

olla

rs)

Inco

me

Rat

e

2003

44,9

46

310,

043,

501

$

31,4

52$

11.5

%20

0445

,259

32

9,04

8,06

8

33

,179

10

.7%

2005

45,3

72

342,

231,

121

34,4

268.

3%20

0646

,044

*

*7.

3%20

0746

,760

*

**

2008

46,7

66

369,

174,

348

37,3

62

7.1%

2009

46,7

86

390,

295,

865

39,7

94

11.8

%20

1047

,002

41

3,31

6,58

2

42

,265

11

.6%

2011

44,0

54

565,

365,

000

43,9

99

11.3

%20

1242

,072

57

5,04

5,00

0

44

,423

9.

4%

Sour

ces:

Pop

ulat

ion

prov

ided

by

the

Cal

iforn

ia S

tate

Dep

t. of

Fin

ance

. P

erso

nal i

ncom

e an

d pe

rca

pita

inco

me

prov

ided

from

the

Bur

eau

of E

cono

mic

Ana

lysi

s an

d un

empl

oym

ent

data

pro

vide

d by

the

Sta

te D

epar

tmen

t of C

omm

erce

and

Lab

or.

Not

e: T

he in

form

atio

n pr

ovid

ed fo

r per

sona

l inc

ome

and

per c

apita

per

sona

l inc

ome

is fo

r the

Cou

nty

of L

os A

ngel

es.

Info

rmat

ion

for B

ell G

arde

ns w

as n

ot a

vaila

ble.

* In

form

atio

n no

t ava

ilabl

e

119

City

of B

ell G

arde

nsPl

edge

d-R

even

ue C

over

age

Last

Ten

Fis

cal Y

ears U

tility

Less

:N

etFi

scal

Serv

ice

Ope

ratin

gA

vaila

ble

Year

Cha

rges

Expe

nses

Rev

enue

Prin

cipa

lIn

tere

stC

over

age

2003

1,33

5,00

0$

75

4,64

9$

580,

351

$

10

0,00

0$

36

1,77

3$

1.26

20

041,

316,

000

1,49

4,35

1

(1

78,3

51)

105,

000

347,

015

(0

.39)

20

051,

333,

000

974,

459

35

8,54

1

110,

000

170,

567

1.

28

2006

1,31

7,85

21,

173,

928

143,

924

190,

000

204,

384

0.36

20

071,

274,

800

1,94

5,58

1(6

70,7

81)

195,

000

200,

241

(1.7

0)20

081,

434,

590

1,32

9,08

910

5,50

120

0,00

019

5,49

90.

2720

091,

246,

000

2,08

7,43

3(8

41,4

33)

205,

000

190,

052

(2.1

3)20

101,

113,

594

1,77

5,81

6(6

62,2

22)

205,

000

190,

052

(1.6

8)20

111,

139,

956

1,42

3,83

6(2

83,8

80)

210,

000

183,

693

(0.7

2)20

121,

150,

100

1,37

2,32

4

(2

22,2

24)

215,

000

176,

518

(0

.57)

Not

es: D

etai

ls re

gard

ing

the

city

's o

utst

andi

ng d

ebt c

an b

e fo

und

in th

e no

tes

to th

e fin

anci

alst

atem

ents

. Ope

ratin

g ex

pens

es d

o no

t inc

lude

inte

rest

, dep

reci

atio

n, o

r am

ortiz

atio

n ex

pens

es.

Deb

t Ser

vice

Wat

er R

even

ue B

onds

118

City of Bell GardensFull-time-Equivalent City Government Employees by Function/ProgramLast Ten Fiscal Years

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012Function/Program

General governmentMayor and City Council 1 1 1 1 1 1 1 1 1 1City Manager's Office 2 4 3 3 4 4 4 4 4 4City Clerk's Office 2 2 2 2 2 2 2 2 2 2Finance 10 8 8 10 10 9 9 10 10 10

Community Development 7 12 12 12 13 13 13 13 13 13

Police

Sworn 56 56 58 58 59 57 57 57 57 55Non-sworn 19 19 19 22 22 23 23 23 23 22

Public works 29 29 29 29 30 30 30 31 31 30Recreation & Community Services 8 6 6 8 11 13 13 13 13 12

Total 134 137 138 145 152 152 152 154 154 149

Source: City Budget

Notes: A full-time employee is scheduled to work 2,080 hours per year (including vacation and sick leave). Full-time-equivalent employment is calculated by dividing total labor hours by 2,080.

Full-time-Equivalent Employees as of June 30

120

City of Bell GardensPrincipal EmployersCurrent Year and Nine Years Ago

EmployerNumber of Employees

Percent ofTotal Employment

Number of Employees

Percent ofTotal

EmploymentBicycle Casino 1,700 11.97% * *Parkhouse Tire Service 112 0.79% * *Southern California Braiding 100 0.70% * *Food 4 Less 89 0.63% * *Applebees 72 0.51% * *Ross 70 0.49% * *Toys R Us 61 0.43% * *McDonalds 54 0.38% * *Marshalls 49 0.35% * *IHOP 42 0.30% * *

2,349 16.55%

Sources:City of Bell Gardens Community Development Department

California Employment Development Department Labor Market Informationhttp://www.labormarketinfo.edd.ca.gov/cgi/dataanalysis/AreaSelection.asp?tableName=Labforce

* Note2002-2003 Employer data is not readily available and thus the Cityhas chosen not to present it at this time.

2002-20032011-2012

121

City

of B

ell G

arde

nsO

pera

ting

Indi

cato

rs b

y Fu

nctio

n/Pr

ogra

mLa

st T

en F

isca

l Yea

rs

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Func

tion/

Prog

ram

Gen

eral

gov

ernm

ent

Bui

ldin

g pe

rmits

issu

ed28

5

32

2

441

49

4

505

368

237

231

281

233

Polic

eP

hysi

cal a

rres

ts1,

358

1,

899

1,81

8

1,

531

1,68

41,

318

1,64

2

1,

524

1,58

6

1,

817

Park

ing

viol

atio

ns9,

748

7,

203

8,81

0

6,

040

7,07

77,

493

7,60

7

5,

614

4,77

7

5,

198

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fic v

iola

tions

*4,

728

4,53

4

4,

495

5,07

95,

819

4,16

2

3,

864

5,13

3

6,

529

Ref

use

colle

ctio

n R

efus

e co

llect

ed (t

ons

per d

ay)

70.0

72

.0

72.0

74

.0

8710

1

93

75

72

72

Rec

ycla

bles

col

lect

ed (t

ons

per d

ay)

9.0

9.0

11

.0

11.0

23

14

11

23

22

22

O

ther

pub

lic w

orks

Stre

et re

surfa

cing

(mile

s)*

*1.

7

1.

4

07.

5*

1.5

3.2

1.5

Pot

hole

s re

paire

d27

0

27

5

280

28

0

277

321

28

8

330

29

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198

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arks

and

recr

eatio

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thle

tic fi

eld

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its is

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77

6

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319

147

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omm

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ter a

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280

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148,

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260,

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sit

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7

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*

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317,

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4

346,

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28

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1

**

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Sour

ces:

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ious

city

dep

artm

ents

.

* Inf

orm

atio

n no

t ava

ilabl

e

Fisc

al Y

ear

122

City

of B

ell G

arde

nsC

apita

l Ass

et S

tatis

tics

by F

unct

ion/

Prog

ram

Last

Ten

Fis

cal Y

ears

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Func

tion/

Prog

ram

Polic

e Stat

ions

1

1

1

1

1

11

11

1O

ther

pub

lic w

orks

Stre

ets

(mile

s)39

0.4

39

4.3

39

8.3

40

2.3

40

2.3

402.

340

2.3

402.

340

2.3

402.

3H

ighw

ays

(mile

s)

107.

4

107.

4

107.

4

107.

4

107.

410

7.4

107.

410

7.4

107.

410

7.4

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etlig

hts

7,91

9

7,99

9

8,07

9

8,16

1

8,16

28,

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8,16

28,

162

8,16

28,

162

Traf

fic s

igna

ls10

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10

5

10

6

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6

11

111

111

111

111

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arks

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eatio

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1010

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l/sof

tbal

l dia

mon

ds

39

39

39

41

33

33

33

Was

tew

ater

San

itary

sew

ers

(mile

s)47

0.0

47

4.8

47

9.6

48

4.4

48

4.4

48

4.4

48

4.4

48

4.4

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4.4

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4.4

S

torm

sew

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(mile

s)32

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1.8

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33

8.5

33

8.5

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8.5

33

8.5

33

8.5

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8.5

Tr

eatm

ent c

apac

ity (t

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of g

allo

ns)

3,55

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3,55

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0

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0

4,20

0

4,20

0

4,20

0

4,20

0

4,20

0

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0

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sit—

Seni

or C

itize

n Bu

s1

1

1

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ces:

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ious

city

dep

artm

ents

.N

otes

: No

capi

tal a

sset

indi

cato

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re a

vaila

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for t

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over

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t fun

ctio

n.

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orm

atio

n no

t ava

ilabl

e

Fisc

al Y

ear

123


124

city of bell gardens, california june 30, 2012gfoa.net/cafr/coa2012/bellgardensca.pdfarnold m....

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