city of bell gardens, california … of bell gardens, california comprehensive annual financial...

CITY OF BELL GARDENS, CALIFORNIA

COMPREHENSIVE ANNUAL FINANCIAL REPORT

JUNE 30, 2011

203 North Brea BlvdSuite 203Brea, CA 92821

Lance Soll & Lunghard, LLP

41185 Golden Gate CircleSuite 103Murrieta, CA 92562

CITY OF BELL GARDENS, CALIFORNIA


JUNE 30, 2011

PREPARED BY:

FINANCE & ADMINISTRATIVE SERVICES DEPARTMENT

CITY OF BELL GARDENS


JUNE 30, 2011

TABLE OF CONTENTS Page Number INTRODUCTORY SECTION

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

Organization Chart ............................................................................................................................ v FINANCIAL SECTION Independent Auditor’s 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 .............................................................. 16 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds ..................................................................................... 18 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities ................................................................................................................................ 20

Budgetary Comparison Statement - General Fund .................................................................. 21 Statement of Net Assets - Proprietary Funds ........................................................................... 22 Statement of Revenues, Expenses and Changes in Fund Net Assets - Proprietary Funds ...................................................................................................................... 23

Statement of Cash Flows - Proprietary Funds .......................................................................... 24 Notes to Financial Statements ............................................................................................................... 25



JUNE 30, 2011

TABLE OF CONTENTS

Page Number COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES

Combining Balance Sheet - Nonmajor Governmental Funds ......................................................... 56 Combining Statement of Revenues, Expenditures and

Changes in Fund Balances - Nonmajor Governmental Funds ........................................................ 64

Budgetary Comparison Schedules - Special Revenue Funds: Public Safety Augmentation ...................................................................................................... 71 COPS State (SLESF) ................................................................................................................ 72 State Gas Tax ........................................................................................................................... 73 Asset Forfeiture ......................................................................................................................... 74 Waste Management .................................................................................................................. 75 Community Development Block Grant ...................................................................................... 76 Proposition “A” .......................................................................................................................... 77 Proposition “C” .......................................................................................................................... 78 Air Quality Improvement ............................................................................................................ 79 Recycling Grants ....................................................................................................................... 80 Academic Pursuit ...................................................................................................................... 81 Separated Employee Benefits .................................................................................................. 82 Post Employment Benefits ........................................................................................................ 83 Measure R ................................................................................................................................. 84 COPS 2010 Grants ................................................................................................................... 85 Anson Ford Park ....................................................................................................................... 86

Budgetary Comparison Schedule – Capital Projects Funds:

Transportation Development Act .............................................................................................. 87 Capital Improvement Projects ................................................................................................... 88 Community Development Commission ..................................................................................... 89

Budgetary Comparison Schedule – Debt Service Funds:

Community Development Commission ..................................................................................... 90



JUNE 30, 2011

TABLE OF CONTENTS

Page Number STATISTICAL SECTION

Net Assets by Component ............................................................................................................... 93 Changes in Net Assets .................................................................................................................... 94 Program Revenues by Function/Program ....................................................................................... 96 Fund Balances - Governmental Funds ............................................................................................ 97 Changes in Fund Balances - Governmental Funds ........................................................................ 98 Tax Revenues by Source - Governmental Funds ......................................................................... 100 Assessed Value and Estimated Actual Value of Taxable Property ............................................... 101 Direct and Overlapping Property Tax Rates .................................................................................. 102 Principal Property Tax Payers ....................................................................................................... 103 Property Tax Levies and Collections ............................................................................................. 104 Taxable Sales by Category ........................................................................................................... 105 Direct and Overlapping Sales Tax Rates ...................................................................................... 106 Principal Sales Tax Remitters ....................................................................................................... 107 Ratios of Outstanding Debt by Type.............................................................................................. 108 Ratios of General Bonded Debt Outstanding ................................................................................ 109 Direct and Overlapping Governmental Activities Debt .................................................................. 110 Legal Debt Margin Information ...................................................................................................... 111 Pledged Revenue Coverage ......................................................................................................... 112 Demographic and Economic Statistics .......................................................................................... 113 Full-time-Equivalent City Government Employees by Function/Program ..................................... 114 Operating Indicators by Function/Program .................................................................................... 115 Capital Asset Statistics by Function/Program ............................................................................... 116

THIS PAGE INTENTIONALLY LEFT BLANK

City Officials

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

Administration and Department Heads

G. Steve Simonian City Manager

Philip Wagner

Assistant City Manager

Will Kaholokula Director of Finance & Administrative Services

Robert Barnes Chief of Police

Aldo Schindler

Director of Community Development

Pamela L. Wasserman Director of Recreation & Community Services

John Oropeza

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

8 Full Time

Recreation & Community Services

12 Full Time

Public Works 30 Full Time

Community Development

13 Full Time

v


vi

INDEPENDENT AUDITOR’S 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, 2011, 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, 2011, 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 – “California Redevelopment Agency Dissolution”. The note provides information on two bills passed, AB1X26 and AB1X27 which dissolve redevelopment agencies and provide an option to avoid dissolution by making certain defined payments. The Note also provides further information on the California Supreme Court ruling dated December 29, 2011 in regards to these two bills. In accordance with Government Auditing Standards, we have also issued our report dated January 24, 2012, 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.

Lance, Soll & Lunghard, LLP 203 North Brea Boulevard • Suite 203 • Brea, CA 92821 • TEL: 714.672.0022 • Fax: 714.672.0331 www.lslcpas.comOrange County Temecula Valley Silicon Valley

Brandon W. Burrows, CPADavid E. Hale, CPA, CFP A Professional CorporationDonald G. Slater, CPARichard K. Kikuchi, CPASusan F. Matz, CPAShelly K. Jackley, CPABryan S. Gruber, CPADeborah A. Harper, CPA

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 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, 2012

2


MANAGEMENT’S DISCUSSION AND ANALYSIS As management of the City of Bell Gardens, 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, 2011. 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, 2011, the City’s net assets (excess of assets over liabilities) were $101.1 million. Of this amount, $5.1 million is available to meet the City’s ongoing operations.

� During the fiscal year ended June 30, 2011, the City’s total net assets decreased by $4.6 million

of which a majority is represented in the governmental activities. 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 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.

3

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 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 27 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, the Community Development Commission Capital Projects Fund, and the Community Development Commission Debt Service Fund which are reported as major funds. Data from the other 24 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.

4

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 For the fiscal year ended June 30, 2011, net assets of the City were $101.1 million, which is a decrease of $4.6 million from the prior year. The following is the condensed Statement of Net Assets for the fiscal years ended June 30, 2011 and 2010.

Approximately $78 million (77%) 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.

Net Assets As of June 30

2010 2011 2010 2011 2010 2011

Current and other assets $ 38,509,707 $ 35,914,168 $ 939,030 $ 806,334 $ 39,448,737 $ 36,720,502Capital assets 109,692,870 109,372,619 7,486,262 7,337,699 117,179,132 116,710,318

Total Assets 148,202,577 145,286,787 8,425,292 8,144,033 156,627,869 153,430,820

Long-term liabilities outstanding 40,969,027 42,498,683 3,846,314 3,642,571 44,815,341 46,141,254Other liabilities 5,787,508 5,807,568 353,045 370,614 6,140,553 6,178,182

Total Liabilities 46,756,535 48,306,251 4,199,359 4,013,185 50,955,894 52,319,436

Net assets:Invested in Capital Assets Net of Related Debt 73,735,338 74,822,075 3,429,948 3,480,128 77,165,286 78,302,203 Restricted 17,088,677 17,354,065 398,434 399,355 17,487,111 17,753,420 Unrestricted 10,622,027 4,804,396 397,551 251,365 11,019,578 5,055,761 Total Net Assets $ 101,446,042 $ 96,980,536 $ 4,225,933 $ 4,130,848 $ 105,671,975 $ 101,111,384

TotalBusiness-type ActivitiesGovernmental Activities

5

Statement of Activities The following is the condensed Statement of Activities and Changes in Net Assets for the fiscal years ended June 30, 2011 and 2010.

City of Bell GardensChanges in Net Assets

2010 2011 2010 2011 2010 2011Revenues:Program revenues:

Charges for services $ 1,380,147 $ 1,651,510 $ 1,411,992 $ 1,401,856 $ 2,792,139 $ 3,053,366Operating grants and contrib. 3,159,241 2,146,983 - - 3,159,241 2,146,983Capital grants and contrib. 3,791,143 1,839,711 10,000 3,801,143 1,839,711

General revenues:Sales taxes 2,030,961 2,321,800 - - Transient occupancy taxes 189,926 221,374 - - Franchise taxes 2,572,707 2,568,428 - - Business license taxes 243,129 280,160 - - Property taxes 4,886,712 4,696,696 - - 4,886,712 4,696,696Other taxes 1,104,418 1,182,332 - - Motor Vehicle in Lieu 3,866,793 3,905,639 - - Use of money and property 6,630,950 3,281,827 6,778 8,664Club card taxes 10,684,933 9,695,632 - - 10,684,933 9,695,632Miscellaneous 303,354 249,606 - - 303,354 249,606

Total Revenues 40,844,414 34,041,698 1,428,770 1,410,520 25,627,522 21,681,994

Expenses:General government 10,175,559 8,821,722 - - 10,175,559 8,821,722Public safety 12,965,767 12,393,794 - - 12,965,767 12,393,794Community development 1,220,075 2,241,756 - - 1,220,075 2,241,756Parks and recreation 2,485,134 2,838,313 - - 2,485,134 2,838,313Public works 9,941,721 10,146,753 - - 9,941,721 10,146,753Interest and fiscal charges 4,857,978 1,972,014 - - 4,857,978 1,972,014Water utility - 1,460,206 1,532,393 1,460,206 1,532,393Golf course - - 251,694 216,584 251,694 216,584

Total Expenses 41,646,234 38,414,352 1,711,900 1,748,977 43,358,134 40,163,329

Increase (decrease) in net assets before transfers (801,820) (4,372,654) (283,130) (338,457) (17,730,612) (18,481,335) Transfers (1,466,556) (243,372) 1,466,556 243,372 - - Changes in Net Assets (2,268,376) (4,616,026) 1,183,426 (95,085) (1,084,950) (4,711,111)

103,714,418 101,596,562 3,042,507 4,225,933 106,756,925 105,822,495Net assets - end of the year $ 101,446,042 $ 96,980,536 $ 4,225,933 $ 4,130,848 $ 105,671,975 $ 101,111,384

Governmental Activities Business-type Activities Total

Net assets - beginning of the year restated

6

Governmental Activities The City’s net assets from governmental activities totaled $96.9 million. The cost of all governmental activities this year was $38.4 million. Overall, the City’s governmental program revenues were $5.6 million. The City paid for the remaining “public benefit” portion of governmental activities with $28.4 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 decreased $6.8 million from the prior year mainly due to a decrease in operating and capital grants and the Card Club casino revenue.

� Card Club casino revenue decreased by $1.0 million from the prior year.

� Operating and Capital contributions and grants decreased $2.9 million. This decrease is

principally related to the completion of street improvement projects that were funded by state and federal grants in the prior year.

Expense highlights:

� Expenses decreased overall by $3.2 million. Decreases are a result of a decrease in interest and fiscal charges due to the refinancing in the City’s loan to the RDA which deferred interest earned for the next 3 years.

Business Type Activities The City’s business-type activities decreased net assets by $0.1 million. Key elements of this decrease are as follows: Revenue Highlights:

� Total program revenue in the business-type activities decreased by about $18,000.

Expense Highlights:

� Total expenses in the business-type activities increased $37,000. 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 end of Fiscal Year 2010-11, the City’s governmental funds reported combined ending fund balance deficit of $1.5 million, a decrease of $1.0 million in comparison with the prior fiscal year.

7

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 $23.61 million and the final amended budget was $23.77 million. Budget amendments totaled less than 1% of the original budget. CAPITAL ASSETS AND DEBT ADMINISTRATION Capital Assets The City of Bell Gardens has $116.7 million invested in the capital assets, as compared to $117.2 million in the prior year. Net decrease in the capital assets is approximately $0.5 million.

2010 2011 2010 2011 2010 2011

Land $ 69,022,714 $ 69,022,714 $ 1,011,000 $ 1,011,000 $ 70,033,714 $ 70,033,714 Buildings 10,758,026 10,224,115 - 10,758,026 10,224,115 Equipment 1,753,295 1,213,899 4,549,926 4,384,837 6,303,221 5,598,736 Construction in Progress 960,509 2,665,779 394,136 429,802 1,354,645 3,095,581 Infrastructure 27,198,326 26,246,112 - - 27,198,326 26,246,112 Intangibles - - 1,531,200 1,512,060 1,531,200 1,512,060

Total $ 109,692,870 $ 109,372,619 $ 7,486,262 $ 7,337,699 $ 117,179,132 $ 116,710,318

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 FY 2010-11. For more detailed information, see note 6 to the financial statements.

8

Long-term Debt At year-end, the City had $48.5 million in long-term debts including development fee related obligations, capital lease obligations, other post employment benefits obligation, certificates of participations and compensated absences, as compared to $47.6 million in prior year, a net increase of $0.9 million during the fiscal year. Please refer to Note 7 for further details on the City’s long-term liabilities.

2010 2011 2010 2011 2010 2011

Accrued Leave Payable 2,445,026$ 2,582,495$ -$ -$ 2,445,026$ 2,582,495$ Other post employment obligations 5,174,113 7,492,251 - - 5,174,113 7,492,251 2003 Tax Allocation Bonds Project Area 1

6,080,000 5,720,000 - - 6,080,000 5,720,000

2003 Tax Allocation Bond Central City Project 8,400,000 8,145,000 - - 8,400,000 8,145,000

2005 Revenue Bond Series A Project Area 1 1,535,000 1,465,000 - - 1,535,000 1,465,000

2005 Revenue Bond Series A Central City Project 2,895,000 2,830,000 - - 2,895,000 2,830,000

Promissory Note- Bear Stearns 9,052,911 8,890,267 - - 9,052,911 8,890,267 Promissory Note- County of LA 4,079,000 3,731,000 - - 4,079,000 3,731,000 2006 Certificates of Participation 3,590,000 3,510,000 - - 3,590,000 3,510,000 2004 Water Refunding Revenue Bonds - 4,220,000 4,010,000 4,220,000 4,010,000

Unamortized bond premium 437,749 364,022 5,637 5,250 443,386 369,272 Unamortized bond discount (112,128) (104,745) (169,323) (157,679) (281,451) (262,424)

Total 43,576,671$ 44,625,290$ 4,056,314$ 3,857,571$ 47,632,985$ 48,482,861$

Governmental Activities Business-Type Activities Totals

Outstanding Long-Term DebtFor Fiscal Year Ended June 30

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 40% 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 2011 completed by the UCLA Anderson School of Management, provided an outlook for the next five quarters that will provide a GDP growth rate for the nation that will be at a ‘below trend rate’. More specifically, the forecast presents a 2% growth rate over the next five quarters. The forecast for California is for “the recent surge in employment to abate while slow growth persists on average through 2012.” Although the outlook is not overwhelmingly positive, the outlook points out “that recent economic data has improved” taking the threat of a double-dip recession off the table. The Operating Budget for fiscal year 2011-12 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’ 2011-12 budget should be sent to the Finance Department at the address below. 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.

9


10


STATEMENT OF NET ASSETS

Governmental Business-TypeActivities Activities Total

Assets:Cash and investments 16,177,665$ 239,580$ 16,417,245$Receivables:

Accounts 813,018 13,519 826,537Notes and loans 11,885,598 - 11,885,598Accrued interest 14,387 75 14,462

Internal balances 10,604 (10,604) -Prepaid costs 1,225,560 - 1,225,560Deposits 20,120 - 20,120Due from other governments 2,078,815 - 2,078,815Deferred charges 217,174 164,409 381,583Restricted assets:

Cash with fiscal agent 3,471,227 399,355 3,870,582Capital assets not being depreciated 71,688,493 1,440,802 73,129,295Capital assets, net of depreciation 37,684,126 5,896,897 43,581,023

Total Assets 145,286,787 8,144,033 153,430,820

Liabilities:Accounts payable 2,731,447 106,349 2,837,796Accrued liabilities 321,763 1,807 323,570Accrued interest 463,835 47,458 511,293Unearned revenue 25,598 - 25,598Deposits payable 64,065 - 64,065Due to other governments 74,253 - 74,253Noncurrent liabilities:

JUNE 30, 2011

Primary Government

See Notes to Financial Statements

Noncurrent liabilities: Due within one year 2,126,607 215,000 2,341,607 Due in more than one year 42,498,683 3,642,571 46,141,254

Total Liabilities 48,306,251 4,013,185 52,319,436

Net Assets:Invested in capital assets, net of related debt 74,822,075 3,480,128 78,302,203Restricted for: Community development projects 553,252 - 553,252 Public safety 805,968 - 805,968 Public works 2,031,290 - 2,031,290 Debt service 13,963,555 399,355 14,362,910Unrestricted 4,804,396 251,365 5,055,761

Total Net Assets 96,980,536$ 4,130,848$ 101,111,384$

See Notes to Financial Statements 11


STATEMENT OF ACTIVITIESYEAR ENDED JUNE 30, 2011

Operating CapitalCharges for Contributions Contributions

Expenses Services and Grants and Grants

Functions/ProgramsPrimary Government:Governmental Activities:

General government 8,821,722$ 134,597$ 73,143$ -$ Public safety 12,393,794 731,516 753,650 - Community development 2,241,756 - 54,624 1,103,015 Parks and recreation 2,838,313 279,769 - - Public works 10,146,753 505,628 1,265,566 736,696 Interest on long-term debt 1,972,014 - - -

Total Governmental Activities 38,414,352 1,651,510 2,146,983 1,839,711

Business-Type Activities:Water 1,532,393 1,249,287 - - Golf Course 216,584 152,569 - -

Total Business-Type Activities 1,748,977 1,401,856 - -

Total Primary Government 40,163,329$ 3,053,366$ 2,146,983$ 1,839,711$

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 propertyOtherTransfers

Total General Revenues and Transfers

Change in Net Assets

Net Assets at Beginning of Year

Restatement of Net Assets

Net Assets at End of Year

Program Revenues


Primary Government

Governmental Business-TypeActivities Activities Total

(8,613,982)$ -$ (8,613,982)$(10,908,628) - (10,908,628)

(1,084,117) - (1,084,117)(2,558,544) - (2,558,544)(7,638,863) - (7,638,863)(1,972,014) - (1,972,014)

(32,776,148) - (32,776,148)

- (283,106) (283,106)- (64,015) (64,015)

- (347,121) (347,121)

(32,776,148) (347,121) (33,123,269)

9,695,632 - 9,695,6324,696,696 - 4,696,696

221,374 - 221,3742,321,800 - 2,321,8002,568,428 - 2,568,428

280,160 - 280,1601,182,332 - 1,182,3323,905,639 - 3,905,6393,281,827 8,664 3,290,491

249,606 - 249,606(243,372) 243,372 -

28,160,122 252,036 28,412,158

(4,616,026) (95,085) (4,711,111)

101,446,042 4,225,933 105,671,975

150,520 - 150,520

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

Net (Expenses) Revenues and Changes in Net Assets



BALANCE SHEETGOVERNMENTAL FUNDS JUNE 30, 2011

Capital Projects Fund

DebtService Fund

GeneralAssets:Cash and investments 6,357,753$ 4,803,955$ -$Receivables:

Accounts 777,063 - -Notes and loans 280,855 9,176,547 -Accrued interest 13,969 - -

Prepaid costs 1,160,034 - 65,526Deposits - 20,120 -Due from other governments 867,696 39,893 143,533Due from other funds 1,173,001 38,330 10,247,314Advances to other funds 50,969,616 - 821,804Restricted assets:

Cash and investments with fiscal agents 1,520,350 - 1,950,877

Total Assets 63,120,337$ 14,078,845$ 13,229,054$

Liabilities and Fund Balances:Liabilities:Accounts payable 778,937$ 167,064$ 179,695$Accrued liabilities 315,002 3,387 -Deferred revenues 21,944,336 6,176,547 -Unearned revenues - - -Deposits payable 39,065 25,000 -

Community Development Commission


p p yDue to other governments - - -Due to other funds - 9,010,240 1,275,404Advances from other funds - 51,791,420 -

Total Liabilities 23,077,340 67,173,658 1,455,099

Fund Balances:Nonspendable:

Prepaid costs 1,160,034 - 65,526 Notes and loans 280,855 3,000,000 - Advances to other funds 29,660,435 - 821,804 Deposits - 20,120 - Restricted for: Community development projects - - - Public safety - - - Parks and recreation - - - Public works - - - Capital Projects - - - Debt service 2,653,435 - 10,886,625 Committed to: Committed to contingencies 1,500,000 - - Post employment benefits - - - Assigned to: Compensated absenses and post employment benefits 4,788,238 - - Unassigned - (56,114,933) -

Total Fund Balances 40,042,997 (53,094,813) 11,773,955

Total Liabilities and Fund Balances 63,120,337$ 14,078,845$ 13,229,054$



BALANCE SHEETGOVERNMENTAL FUNDSJUNE 30, 2011

Assets:Cash and investmentsReceivables:

AccountsNotes and loansAccrued interest

Prepaid costsDepositsDue from other governmentsDue from other fundsAdvances to other fundsRestricted assets:

Cash and investments with fiscal agents

Total Assets

Liabilities and Fund Balances:Liabilities:Accounts payableAccrued liabilitiesDeferred revenuesUnearned revenuesDeposits payable

Other TotalGovernmental Governmental

Funds Funds

5,015,957$ 16,177,665$

35,955 813,0182,428,196 11,885,598

418 14,387- 1,225,560- 20,120

1,027,693 2,078,815- 11,458,645- 51,791,420

- 3,471,227

8,508,219$ 98,936,455$

1,605,751$ 2,731,447$3,374 321,763

2,816,339 30,937,22225,598 25,598

- 64,065p p yDue to other governmentsDue to other fundsAdvances from other funds

Total Liabilities

Fund Balances:Nonspendable:

Prepaid costs Notes and loans Advances to other funds Deposits Restricted for: Community development projects Public safety Parks and recreation Public works Capital Projects Debt service Committed to: Committed to contingencies Post employment benefits Assigned to: Compensated absenses and post employment benefits Unassigned

Total Fund Balances

Total Liabilities and Fund Balances

74,253 74,2531,162,397 11,448,041

- 51,791,420

5,687,712 97,393,809

- 1,225,560- 3,280,855- 30,482,239- 20,120

429,398 429,398805,968 805,968123,854 123,854

2,030,498 2,030,498792 792

- 13,540,060

- 1,500,000778,291 778,291

- 4,788,238(1,348,294) (57,463,227)

2,820,507 1,542,646

8,508,219$ 98,936,455$



RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDSTO THE STATEMENT OF NET ASSETSJUNE 30, 2011

Fund balances of governmental funds 1,542,646$

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. 109,372,619

Bond issuance cost is an expenditure in the governmental funds, but it is a deferred charge in the statement of net assets. 217,174

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

Bonds and notes payable (34,550,544) Compensated absences (2,582,495)

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. (7,492,251)

Accrued interest payable for the current portion of interest due on bonds has not been reported in the governmental funds. (463,835)

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. 30,937,222

Net assets of governmental activities 96,980,536$



17


STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCESGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2011

Capital Projects Fund

Debt Service Fund

General Revenues:Taxes 4,179,691$ 745,576$ 2,982,303$Licenses and permits 425,579 - -Intergovernmental 4,268,832 - -Club card fees 9,695,632 - -Charges for services 288,118 - -Use of money and property 4,418,033 595,246 24,272Fines and forfeitures 328,566 - -Contributions - - -Miscellaneous 283,465 52,500 -

Total Revenues 23,887,916 1,393,322 3,006,575

Expenditures:Current: General government 3,103,460 1,322,169 633,896 Public safety 11,463,063 - - Community development 787,788 1,046,097 - Parks and recreation 2,602,011 - - Public works 3,210,734 - -Capital outlay 86,675 30,407 -Debt service:



Debt service: Principal retirement 80,000 - 912,644 Interest and fiscal charges 163,998 - 1,678,513

Total Expenditures 21,497,729 2,398,673 3,225,053

Excess (Deficiency) of Revenues Over (Under) Expenditures 2,390,187 (1,005,351) (218,478)

Other Financing Sources (Uses):Transfers in 244,000 - -Transfers out (738,448) - -

Total Other Financing Sources (Uses) (494,448) - -

Net Change in Fund Balances 1,895,739$ (1,005,351)$ (218,478)$

Fund Balances:Beginning of year, as originally reported 36,077,440$ (50,136,168)$ 12,167,080$ Restatements 2,069,818 (1,953,294) (174,647)

Beginning of year, as restated 38,147,258 (52,089,462) 11,992,433 Net Change in Fund Balances 1,895,739 (1,005,351) (218,478)

End of Year 40,042,997$ (53,094,813)$ 11,773,955$



STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCESGOVERNMENTAL FUNDSYEAR ENDED JUNE 30, 2011

Revenues:TaxesLicenses and permitsIntergovernmentalClub card feesCharges 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:

Other TotalGovernmental Governmental

Funds Funds

3,194,391$ 11,101,961$- 425,579

3,867,091 8,135,923- 9,695,632

221,912 510,030170,693 5,208,244337,322 665,888

70,000 70,00018,998 354,963

7,880,407 36,168,220

451,090 5,510,615894,158 12,357,221373,901 2,207,786216,563 2,818,574

5,149,485 8,360,2192,294,983 2,412,065

Debt 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)

Net Change in Fund Balances

Fund Balances:Beginning of year, as originally reported Restatements

Beginning of year, as restated Net Change in Fund Balances

End of Year

348,000 1,340,644200,730 2,043,241

9,928,910 37,050,365

(2,048,503) (882,145)

1,004,721 1,248,721(753,645) (1,492,093)

251,076 (243,372)

(1,797,427)$ (1,125,517)$

4,409,291$ 2,517,643$208,643 150,520

4,617,934 2,668,163(1,797,427) (1,125,517)

2,820,507$ 1,542,646$



RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDSTO THE STATEMENT OF ACTIVITIESYEAR ENDED JUNE 30, 2011

Net change in fund balances - total governmental funds (1,125,517)$

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. (320,251)

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 1,406,988

Debt issuance costs are expenditures in governmental funds, but these costs are capitalized on the statement of net assets. (14,752)

Accrued interest for long-term liabilities. This is the net change in accrued interest for the current period. 19,635

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. (137,469)

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. (2,318,138)

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. (2,126,522)

Change in net assets of governmental activities (4,616,026)$



BUDGETARY COMPARISON STATEMENTGENERAL FUNDYEAR ENDED JUNE 30, 2011

Variance with Final Budget

Budget Amounts Actual PositiveOriginal Final Amounts (Negative)

Budgetary Fund Balance, July 1, as restated 38,147,258$ 38,147,258$ 38,147,258$ -$ Resources (Inflows):Taxes 3,894,162 3,894,162 4,179,691 285,529Licenses and permits 277,680 277,680 425,579 147,899Intergovernmental 4,023,734 4,023,734 4,268,832 245,098Club card fees 10,644,350 10,644,350 9,695,632 (948,718)Charges for services 305,540 305,540 288,118 (17,422)Use of money and property 3,346,164 3,346,164 4,418,033 1,071,869Fines and forfeitures 397,674 397,674 328,566 (69,108)Miscellaneous 59,500 59,500 283,465 223,965Transfers in 894,000 894,000 244,000 (650,000)

Amounts Available for Appropriations 61,990,062 61,990,062 62,279,174 289,112 Charges to Appropriations (Outflow):General government 3,875,017 3,875,017 3,103,460 771,557Public safety 12,093,219 12,093,219 11,463,063 630,156Community development 831,486 867,007 787,788 79,219Parks and recreation 2,766,266 2,766,266 2,602,011 164,255Public works 3,206,701 3,206,701 3,210,734 (4,033)Capital outlay 86,900 113,150 86,675 26,475Debt service: Principal retirement 80,000 80,000 80,000 - Interest and fiscal charges 163,998 163,998 163,998 -Transfers out 509,000 606,500 738,448 (131,948)

Total Charges to Appropriations 23,612,587 23,771,858 22,236,177 1,535,681

Budgetary Fund Balance, June 30 38,377,475$ 38,218,204$ 40,042,997$ 1,824,793$



STATEMENT OF NET ASSETSPROPRIETARY FUNDS JUNE 30, 2011

NonmajorEnterprise

FundsGolf Course Total

Assets:Current:

Cash and investments 239,580$ - $ 239,580$Receivables:

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

Restricted:Cash with fiscal agent 399,355 - 399,355

Total Current Assets 652,529 - 652,529

Noncurrent:Unamortized debt issuance costs 164,409 - 164,409Capital assets - net of accumulated depreciation 7,334,902 2,797 7,337,699

Total Noncurrent Assets 7,499,311 2,797 7,502,108

Total Assets 8,151,840$ 2,797$ 8,154,637$

Liabilities and Net Assets:Liabilities:Current:

Accounts payable 102,711$ 3,638$ 106,349$Accrued liabilities 751 1,056 1,807Accrued interest 47,458 - 47,458Due to other funds - 10,604 10,604Bonds, notes, and capital leases 215,000 - 215,000

Total Current Liabilities 365,920 15,298 381,218

Noncurrent:Bonds, notes, and capital leases 3,642,571 - 3,642,571

Total Noncurrent Liabilities 3,642,571 - 3,642,571

Total Liabilities 4,008,491 15,298 4,023,789

Net Assets:Invested in capital assets, net of related debt 3,477,331 2,797 3,480,128Restricted for debt service 399,355 - 399,355Unrestricted 266,663 (15,298) 251,365

Total Net Assets 4,143,349 (12,501) 4,130,848

Total Liabilities and Net Assets 8,151,840$ 2,797$ 8,154,637$

Business-Type Activities - Enterprise Funds

Water



STATEMENT OF REVENUES, EXPENSESAND CHANGES IN FUND NET ASSETSPROPRIETARY FUNDS YEAR ENDED JUNE 30, 2011

NonmajorEnterprise


Operating Revenues:Sales and service charges 1,139,956$ 148,441$ 1,288,397$Miscellaneous 109,331 4,128 113,459

Total Operating Revenues 1,249,287 152,569 1,401,856

Operating Expenses:Cost of sales and services 987,526 115,032 1,102,558Personnel services 160,621 94,479 255,100Depreciation expense 177,156 7,073 184,229

Total Operating Expenses 1,325,303 216,584 1,541,887

Operating Income (Loss) (76,016) (64,015) (140,031)

Nonoperating Revenues (Expenses):Interest revenue 2,164 6,500 8,664Interest expense (207,090) - (207,090)

Total Nonoperating Revenues (Expenses) (204,926) 6,500 (198,426)

Income (Loss) Before Transfers (280,942) (57,515) (338,457)

Transfers in - 487,372 487,372Transfers out (244,000) - (244,000)

Changes in Net Assets (524,942) 429,857 (95,085)

Net Assets:Beginning of Year 4,668,291 (442,358) 4,225,933

End of Fiscal Year 4,143,349$ (12,501)$ 4,130,848$


Water



STATEMENT OF CASH FLOWSPROPRIETARY FUNDS YEAR ENDED JUNE 30, 2011

OtherEnterprise


Cash Flows from Operating Activities:Cash received from customers and users 1,249,287$ 152,569$ 1,401,856$ Cash paid to suppliers for goods and services (972,614) (117,374) (1,089,988) Cash paid to employees for services (160,621) (94,480) (255,101)

Net Cash Provided (Used) by Operating Activities 116,052 (59,285) 56,767

Cash Flows from Non-CapitalFinancing Activities:

Cash transfers out (244,000) - (244,000)Cash transfers in - 487,372 487,372 Repayment made to other funds - (434,587) (434,587)

Net Cash Provided (Used) by Non-Capital Financing Activities (244,000) 52,785 (191,215)

Cash Flows from Capital and Related Financing Activities:

Acquisition and construction of capital assets (35,666) - (35,666) Principal paid on capital debt (210,000) - (210,000) Interest paid on capital debt (183,692) - (183,692)

Net Cash Provided (Used) by Capital and Related Financing Activities (429,358) - (429,358)

Cash Flows from Investing Activities:Interest received 2,164 6,500 8,664

Net Cash Provided (Used) byInvesting Activities 2,164 6,500 8,664

Net Increase (Decrease) in Cashand Cash Equivalents (555,142) - (555,142)

Cash and Cash Equivalents at Beginning of Year 1,194,077 - 1,194,077

Cash and Cash Equivalents at End of Year 638,935$ -$ 638,935$

Reconciliation of Operating Income to Net CashProvided (Used) by Operating Activities:Operating income (loss) (76,016)$ (64,015)$ (140,031)$Adjustments to reconcile operating income (loss) net cash provided (used) by operating activities:

Depreciation 177,156 7,073 184,229Increase (decrease) in accounts payable 14,912 (2,342) 12,570Increase (decrease) in accrued liabilities - (1) (1)

Total Adjustments 192,068 4,730 196,798Net Cash Provided (Used) by Operating Activities 116,052$ (59,285)$ 56,767$

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

loss on defeasance. 23,398$ -$ 23,398$


Water


CITY OF BELL GARDENS NOTES TO FINANCIAL STATEMENTS JUNE 30, 2011

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 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 of the Commission are available at City Hall, 7100 Garfield Avenue, Bell Gardens, California 90201-3293. Separate financial statements are not prepared for the Authority.

25

CITY OF BELL GARDENS NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2011 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, and proprietary funds. 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.

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.

26


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. From this fund are paid the general operating expenditures not paid through other funds.

� The Community Development Commission - Capital Projects Fund accounts for the financial resources used in developing the project areas as well as the administrative expenditures incurred in sustaining Commission activities.

� The Community Development Commission - Debt Service Fund accounts for the payment of interest and principal on long-term debt, and accumulation of resources thereof.

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 designated 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.

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.

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.

27


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."

Advances between funds, 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.

28


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. 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

29


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.

Committed - include amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the governing board of the Commission.

Assigned - include amounts that are constrained by the government’s intent to be used for specific purposes, but are neither restricted nor committed.

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

An individual governmental fund could include nonspendable resources and amounts that are restricted or unrestricted (committed, assigned, or unassigned) or any combination of those classifications.

30


e. Reconciliation of Government-Wide and Fund Financial Statements

1. Explanation of certain differences between the governmental fund balance sheet and

the government-wide statement of assets. The governmental fund balance sheet includes a reconciliation between fund balance - total governmental funds, and net assets - governmental activities as reported in the government-wide statement of net assets. One element of that reconciliation explains that "long-term debts have not been included in the governmental fund activity." The details of this ($34,550,544) difference are summarized as follows:

2003 Tax Allocation Bonds, Series A (5,720,000)$ 2003 Tax Allocation Bonds, Series B (8,145,000) 2005 Revenue Bonds, Series A (4,295,000) 2006 Certificates of Participation (3,510,000) Notes Payable: Bear Sterns (8,890,267) Notes Payable: County of Los Angeles - Section 108 (3,731,000) Less: Unamortized original issue discount 104,745 Add: Unamortized original issue premium (364,022)

Net adjustment to reduce fund balance - total governmentalfunds to arrive at net assets - governmental activities (34,550,544)$

2. Explanation of certain differences between the governmental fund statement of revenues, expenditures and changes in fund balances and the government-wide statement of activities. The governmental fund statement of revenues, expenditures and changes in fund balances includes a reconciliation between net changes in fund balances - total governmental funds and changes in net assets of governmental activities as reported in the government-wide statement of activities. One element of that reconciliation explains that "Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense." The details of this ($320,251) difference are as follows:

Capital outlay 2,579,489$ Disposal of assets (80,748) Depreciation expense (2,818,992)

Net adjustment to increase net changes in fund balances - total governmental funds to arrive at changes in net assetsof governmental activities (320,251)$

31

CITY OF BELL GARDENS NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2011

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 the 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 2010-2011, the following funds had no legally adopted budget: CLEEP Grant OJJDP Boxing COPS Tech ABC Grant JAG Grant 2008 Homeland Security Grant

b. Fund Deficit At June 30, 2011, the following non-major funds had deficit fund balances:

Special Revenue Funds:

Community Development Block Grant (3,321)$ Proposition "C" (558,786) Air Quality Improvement (2,796) Recycling Grants (51,900) Separated Employee Benefits (215,024) COPS 2010 Grant (75,880)

Capital Project Funds:Capital Improvement Projects (440,587)

Enterprise Funds:Golf (12,501)

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

32

CITY OF BELL GARDENS NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2011 Note 2: Stewardship, Compliance and Accountability (Continued)

c. Excess Expenditures

Expenditures for the year ended June 30, 2011, exceeded the appropriations in the following funds:

Budget Actual Variance

Major Governmental Funds:

3,011,157$ 3,225,053$ (213,896)$

Nonmajor Governmental Funds:Special Revenue Funds:

Asset Forfeiture 87,029 160,344 (73,315) Proposition "C" 1,117,408 1,158,292 (40,884) Separated Employee Benefits 50,000 55,604 (5,604) Post Employment Benefits 210,700 395,486 (184,786) COPS 2010 Grants 389,615 436,477 (46,862)

Fund

Community Development Commission - Debt Service Fund:

III. DETAILED NOTES ON ALL FUNDS

Note 3: Cash and Investments

As of June 30, 2011, cash and investments were reported in the accompanying financial statements as follows:

Governmental activities 19,648,892$ Business-type activities 638,935

Total Cash and Investments 20,287,827$

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, 2011, the carrying amount of the City’s deposits was $767,726 and the bank balance was $1,124,153. The $356,427 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

33

CITY OF BELL GARDENS NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2011 Note 3: Cash and Investments (Continued)

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 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.

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 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.

34


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, 2011, 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, 2011, 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, 2011, 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, 2011, 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, 2011, none of the City’s deposits or investments were exposed to custodial credit risk.

35


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, 2011, the City had the following investments and original maturities:

Investment Type

Local Agency Investment Fund 12,186,657$ -$ -$ 12,186,657$ Money Market Accounts 3,462,862 - - 3,462,862 Cash with Fiscal Agents:

Money Market Accounts 1,455,087 - - 1,455,087 Treasury Obligations - - 2,415,495 2,415,495

Total 17,104,606$ -$ 2,415,495$ 19,520,101$

Remaining Investment Maturities6 months

or less6 months to 1 year

1 to 3 years

Fair Value

Note 4: Notes and Loans Receivable

a. During 1992-93, the 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, 2011, is $739,489. The Commission has recorded deferred revenue at June 30, 2011, for the remainder of the outstanding loan.

b. At June 30, 2011, 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 $533,794 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, 2011, the balance of the receivable was $210,382 which has also been recorded as deferred revenue.

d. During 1996-97, the City instituted an interest-free Computer Loan Program for full-time

City employees. The maximum loan amount was $3,000 per employee, with a three-year payback. At June 30, 2011, the balance of the receivable was $132.

36

CITY OF BELL GARDENS NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2011 Note 4: Notes and Loans Receivable (Continued)

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

June 30, 2011, the balance of the loans outstanding is $749,533 which has also been recorded as deferred revenue.

f. On July 25, 2002, the Commission entered into a 10-year construction loan agreement

for the purpose of improving certain commercial real property described as the Premises in a Commercial Rehabilitation Loan Agreement dated July 10, 2002. The amount of the construction loan was $667,000 and originally bore interest at the rate of 6.0% annually, compounded monthly. On June 14, 2004, the Commission approved a reduction in the interest rate in the Note and Loan Agreement to 4.5% annually, compounded monthly, due principally to the overall drop in interest rates for commercial loans in recent periods. Monthly payments of $6,965 commence on July 1, 2004, and continue until June 1, 2014. The note was paid off during the current fiscal year.

g. 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, 2011, is $862,436 which has also been recorded as deferred revenue.

h. On April 1, 2005, Bell Gardens Housing Partners, L.P., a California limited partnership

promises 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.

37

CITY OF BELL GARDENS NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2011 Note 4: Notes and Loans Receivable (Continued)

The balance of the promissory note and the related interest at the year end June 30, 2011, as follows:

Principal Amount

Interest Amount Total

CDBG Special Revenue 964,100$ 180,769$ 1,144,869$ Capital Projects

Project Area 1 1,514,960 284,055 1,799,015 Low Mod Housing 1,333,143 249,964 1,583,107

3,812,203$ 714,788$ 4,526,991$

The City has also recorded these loans as deferred revenue.

i. 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, 2011, including accrued interest of $1,192,500, is $4,192,500.

j. As of June 30, 2011, the City has $70,341 in settlements receivable. The City is

scheduled to receive $3,600 annually toward the receivable. Note 5: Interfund 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, 2011:

Community CommunityDevelopment Development Commission - Commission - Nonmajor Nonmajor

Capital Debt Governmental EnterpriseDue From Other Funds Projects Service Funds Funds Total

General Fund -$ -$ 1,162,397$ 10,604$ 1,173,001$ Community Development Commission - Capital Projects 38,330 - - - 38,330 Community Development Commission - Debt Service 8,971,910 1,275,404 - - 10,247,314

Total 9,010,240$ 1,275,404$ 1,162,397$ 10,604$ 11,458,645$

Due To Other Funds

38

CITY OF BELL GARDENS NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2011 Note 5: Interfund Receivables, Payables, and Transfers (Continued)

Inter-fund receivables and payables at June 30, 2011, are the result of the elimination of deficit cash balances in individual funds and routine inter-fund transactions not cleared at the end of the fiscal year.

b. Transfers To / From Other Funds:

The following summarizes the total transfers in and transfers out to other funds as of June 30, 2011:

Nonmajor NonmajorGeneral Governmental Enterprise

Transfers Out Fund Funds Funds TotalGeneral Fund -$ 251,076$ 487,372$ 738,448$ Nonmajor Governmental Funds - 753,645 - 753,645 Water Fund 244,000 - - 244,000 Total 244,000$ 1,004,721$ 487,372$ 1,736,093$

Transfer In

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 the Nonmajor Enterprise Funds to cover for the Golf Course Fund’s operation deficit. The transfer of $756,645 between Nonmajor Governmental Funds was to reimburse Proposition “A” Fund for expenditure incurred on behalf of Proposition “C” Fund. The transfer to the General Fund from the Water Fund was for reimbursement of the debt service payment on the 2006 Certificates of Participation.

c. Advances To / From Other Funds

The following summarizes the total advances to and from other funds as of June 30, 2011:

Advances From Other Funds Community

DevelopmentCommission -

CapitalAdvances To Other Funds Projects

General Fund 50,969,616$ Commission Development Commission - Debt Service 821,804 Total 51,791,420$

Advances to the Community Development Commission – Capital Project Fund from the General Fund in the amount of $50,969,616 were to provide cash to the Commission for capital projects.

39

CITY OF BELL GARDENS NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2011 Note 5: Interfund Receivables, Payables, and Transfers (Continued)

Advances to the Community Development Commission – Capital Project from the Community Development Commission – Debt Service Fund in the amount of $821,804 were to provide fund to repay the advances due to the City.

Note 6: Capital Assets

A summary of the changes in capital asset activity for the year ended June 30, 2011, is as follows:

Beginning EndingBalance Increases Decreases Transfers Balance

Governmental Activities:Capital assets, not being depreciated:

Land 69,022,714$ -$ -$ -$ 69,022,714$ Construction-in-progress 960,509 2,544,215 - (838,945) 2,665,779

Total Capital Assets, Not Being Depreciated 69,983,223 2,544,215 - (838,945) 71,688,493

Capital assets, being depreciated:Buildings and structures 14,851,179 - - - 14,851,179 Equipment 6,854,408 35,274 270,931 - 6,618,751 Infrastructure 41,880,193 - 326,161 838,945 42,392,977

Total Capital Assets, Being Depreciated 63,585,780 35,274 597,092 838,945 63,862,907

Less accumulated depreciation:Buildings and structures 4,093,153 533,911 - - 4,627,064 Machinery and equipment 5,101,113 574,670 270,931 - 5,404,852 Infrastructure 14,681,867 1,710,411 245,413 - 16,146,865

Total Accumulated Depreciation 23,876,133 2,818,992 516,344 - 26,178,781

Total Capital Assets, Being Depreciated, Net 39,709,647 (2,783,718) 80,748 838,945 37,684,126

Governmental Activities Capital Assets, Net 109,692,870$ (239,503)$ 80,748$ -$ 109,372,619$

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

Governmental Activities:General government 954,426$ Public works 1,864,566

Total Depreciation Expense - Governmental Activities 2,818,992$

40

CITY OF BELL GARDENS NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2011 Note 6: Capital Assets (Continued)

Beginning EndingBalance Increases Decreases Balance

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

Land 1,011,000$ -$ -$ 1,011,000$ Construction in progress 394,136 35,666 - 429,802

Total Capital Assets, Not Being Depreciated 1,405,136 35,666 - 1,440,802

Capital assets, being depreciated:Water rights 1,914,000 - - 1,914,000 Equipment 5,738,884 - - 5,738,884

Total Capital Assets, Being Depreciated 7,652,884 - - 7,652,884

Less accumulated depreciation:Water rights 382,800 19,140 - 401,940 Equipment 1,188,958 165,089 - 1,354,047

Total Accumulated Depreciation 1,571,758 184,229 - 1,755,987

Total Capital Assets, Being Depreciated, Net 6,081,126 (184,229) - 5,896,897

Business-Type Activities Capital Assets, Net 7,486,262$ (148,563)$ -$ 7,337,699$

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

Business-Type Activities:Water 177,156$ Golf Course 7,073

Total Depreciation Expense - Business-Type Activities 184,229$

41

CITY OF BELL GARDENS NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2011 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, 2011:

Balance Balance Due Within

July 1, 2010 Additions Deletions June 30, 2011 One Year

2003 Tax Allocation Bonds - Project Area No. 1 6,080,000$ -$ 360,000$ 5,720,000$ 375,000$ Central City Project Area 8,400,000 - 255,000 8,145,000 265,000

2005 Revenue Bonds Series A -Project Area No. 1 1,535,000 - 70,000 1,465,000 80,000 Central City Project Area 2,895,000 - 65,000 2,830,000 70,000

2006 Certificates of Participation 3,590,000 - 80,000 3,510,000 80,000 Notes Payable:

Bear Sterns 9,052,911 - 162,644 8,890,267 172,607 County of Los Angeles - Section 108 4,079,000 - 348,000 3,731,000 371,000

Accrued leave benefits 2,445,026 1,390,700 1,253,231 2,582,495 713,000 Other post employment benefits obligation 5,174,113 2,713,624 395,486 7,492,251 -

Sub-total 43,251,050$ 4,104,324$ 2,989,361$ 44,366,013 2,126,607$

Unamortized Bond Premium 364,022 Unamortized Bond Discount (104,745)

Total 44,625,290$

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, 2011, the unamortized discount outstanding was $62,741 and the total bonds outstanding was $13,865,000. The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2011, including interest, are as follows:

Principal Interest2011-2012 640,000$ 692,095$ 2012-2013 670,000 665,097 2013-2014 695,000 636,119 2014-2015 725,000 605,158 2015-2016 755,000 571,835 2016-2021 4,350,000 2,267,771 2021-2026 3,570,000 1,146,930 2026-2031 2,460,000 299,331

Totals 13,865,000$ 6,884,336$

42

CITY OF BELL GARDENS NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2011 Note 7: Long - Term Debt (Continued)

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, 2011, the unamortized premium outstanding was $364,022 and the total principal outstanding was $4,295,000. At June 30, 2011, the annual requirements to repay the outstanding indebtedness were as follows:

Principal Interest2011-2012 150,000$ 327,050$ 2012-2013 160,000 315,038 2013-2014 170,000 302,250 2014-2015 190,000 288,300 2015-2016 200,000 273,188 2016-2021 1,250,000 1,099,338 2021-2026 1,210,000 578,538 2026-2031 965,000 156,744

Totals 4,295,000$ 3,340,446$

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, 2011, the unamortized discount outstanding was $42,004 and the total principal balance outstanding was $3,510,000. At June 30, 2011, the annual requirements to repay the outstanding indebtedness were as follows:

Principal Interest

2011-2012 80,000$ 161,038$ 2012-2013 85,000 158,038 2013-2014 85,000 154,765 2014-2015 90,000 151,365 2015-2016 95,000 147,765 2016-2021 530,000 676,025 2021-2026 660,000 544,825 2026-2031 835,000 372,400 2031-2036 1,050,000 154,375

Totals 3,510,000$ 2,520,596$

43


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, 2011, is $8,890,267. At June 30, 2011, the annual requirements to repay the outstanding indebtedness were as follows:

Principal

2011-2012 172,607$ 2012-2013 8,717,660

Totals 8,890,267$

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 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, 2011, the principal balance outstanding was $3,731,000. At June 30, 2011, the annual requirements to repay the outstanding indebtedness were as follows:

Principal Interest2011-2012 371,000$ 182,735$ 2012-2013 395,000 163,489 2013-2014 420,000 142,950 2014-2015 448,000 120,988 2015-2016 477,000 97,491 2016-2021 1,620,000 132,788

Totals 3,731,000$ 840,441$

Accrued Leave Payable (Compensated Absences)

For governmental funds, accumulated vacation and sick leave benefits and compensatory time payable in future years when used by City employees amounted to $2,582,495 ($690,791 vacation, $1,688,424 sick leave, $67,976 in compensatory time, $101,385 in floating holiday, and $33,919 in administrative leave) at June 30, 2011.

44


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.

Debt Service Requirements

The Bell Gardens Community Development Commission has pledged, as security for bonds it has issued, either directly or through the Financing Authority, a portion of the tax increment revenue (including Low and Moderate Income Housing set-aside) that it receives. These bonds were to provide financing for various capital projects, accomplish Low and Moderate Income Housing projects and to defease previously issued bonds. The Commission has committed to appropriate each year, from these resources amounts sufficient to cover the principal and interest requirements on the debt. Total principal and interest remaining on the debt is $28,384,782 with annual debt service requirements as indicated above. For the current year, the total tax increment revenue, net of pass through payments, recognized by the Commission was $3,432,026 and the debt service obligation on the bonds was $1,804,846.

b. Business-Type Activities

The following is a schedule of changes in proprietary fund long-term debt for the year ended June 30, 2011:

Balance Balance Due Within

July 1, 2010 Additions Deletions June 30, 2011 One Year

2004 Revenue Bonds 4,220,000$ -$ 210,000$ 4,010,000$ 215,000$

Total 4,220,000$ -$ 210,000$ 4,010,000 215,000$

Unamortized bond premium 5,250 Unamortized loss on refunding (157,679)

Total 3,857,571$

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, 2011, the unamortized premium on the 2004 water refunding revenue bonds was $5,250 and the outstanding balance was $4,010,000.

45


The debt service requirements to maturity for the revenue bonds outstanding at June 30, 2011, are as follows:

Principal Interest

2011-2012 215,000$ 176,518$ 2012-2013 225,000 168,705 2013-2014 230,000 160,343 2014-2015 240,000 151,230 2015-2016 250,000 140,805 2016-2021 1,435,000 514,426 2021-2026 1,415,000 140,041

Totals 4,010,000$ 1,452,068$

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.

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 12.431% for miscellaneous employees and 39.974% for police employees of annual covered payroll. The contribution requirements of plan members and the City are established and may be amended by PERS.

Annual Pension Cost

For 2011, the City's annual pension cost of $3,458,954 for PERS was equal to the City's required and actual contributions. The required contribution was determined as part of the June 30, 2010, actuarial valuation using the entry age normal actuarial cost method.

46

CITY OF BELL GARDENS NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2011 Note 8: Defined Benefit Pension Plan (Continued)

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

Valuation Date June 30, 2010Actuarial Cost Method Entry Age Actuarial Cost MethodAmortization Method Level Percent of PayrollAverage Remaining Period 19 Years as of the Valuation Date Asset Valuation Method 15 Year Smoothed MarketActuarial Assumptions

Investment Rate of Return 7.75% (net of administrative expenses)Projected Salary Increases 3.55% 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.

Annual PercentagePension Cost of APC Net Pension

Fiscal Year (APC) Contributed Obligations6/30/2009 3,408$ 100% -$ 6/30/2010 3,451 100% - 6/30/2011 3,459 100% -

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

For fiscal year 2010-2011, 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.

47

CITY OF BELL GARDENS NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2011 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 2010-2011, the City paid $395,486 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. 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 206,965 Adjustment to ARC (393,950)

Annual OPEB cost 2,713,624 Contribution made 395,486

Increase (decrease) in net OPEB obligation 2,318,138 Net OPEB obligation - July 1, 2010 5,174,113 Net OPEB obligation - June 30, 2011 7,492,251$

The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for the 2010-11 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

06/30/09 2,900,609$ 221,435$ 7.63% 2,679,174$ 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

48

CITY OF BELL GARDENS NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2011 Note 9: Other Post-Retirement Benefits (Continued)

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 second year of the plan and a new actuarial has not been performed.

ActuarialAccrued UAAL as

Actuarial Actuarial Liability Unfunded a % ofValuation Valuation of (AAL) Entry AAL Funded Covered Covered

date Assets Age (UAAL) Ratio Payroll Payroll

6/30/2009 -$ 29,230$ 29,230$ 0.0% 8,781$ 332.9%

Schedule of Funding Progress for OPEB(Amount in Thousands)

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 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 retirees 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 (the Authority). The Authority is composed of 121 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

49

CITY OF BELL GARDENS NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2011 Note 10: Insurance (Continued)

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

A revised cost allocation methodology was introduced in 2010-2011, however it retains many elements of the previous allocation methodology. Each member pays an annual contribution (formally called the primary deposit) to cover estimated losses for the coverage period. The 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. The subsequent cost re-allocation among members based on actual claim development can result in adjustments of either refunds or additions 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 cost allocation methodology is provided below. 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 2010-11 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 limit of $35 million per occurrence. This $35 million subsidence sub-limit is composed of (a) $5 million retained with 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.

50

CITY OF BELL GARDENS NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2011 Note 10: Insurance (Continued)

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 $4 million is purchased as part of a reinsurance policy, and Employer’s Liability losses from $4 million to $10 million are pooled among members.�

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, 2008 through July 1, 2011. 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 $14,481,933. 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 2010-11.

51

CITY OF BELL GARDENS NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2011 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: 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, 2011.

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 $125,620 for the year ended June 30, 2011.

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, 2011.

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 $94,500 for the year ended June 30, 2011.

52

CITY OF BELL GARDENS NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2011 Note 12: Operating Lease Agreements (Continued)

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

Parking Lot HotelShopping

Center Water Rights

2012 966,298$ 81,510$ 842,647$ 98,000$ 2013 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 - thereafter - 5,787,210 - -

Totals 2,866,682$ 6,194,760$ 1,796,360$ 413,000$

Note 13: Fund Balances and Net Assets Restatements

Fund balances and net assets have been restated as follows: Governmental Funds and Governmental Activities:

Major Governmental Funds:General Fund:

To adjust principal and unpaid interest on advances to the Community Development Commission. 1,953,294$ To correct prior year revenue accrual for reimbursable expenditure incurred in prior years. 237,952 To reverse accounts receivable accruals from prior years that were not properly reversed. (182,917) To write-off an accounts payable balance from prior years reported on the books. 61,489

Total General Fund 2,069,818

Community Development Commission - Capital Projects Fund:To adjust principal and unpaid interest on advances from the City. (1,953,294)

Community Development Commission - Debt Service Fund:To correct prior year accruals of pass-through payments. (174,647)

Nonmajor Governmental Funds:Asset Forfeiture Fund:

To write-off deposits payable balance related to assets seized in prior years. 264,816

Anson Ford Park:To reverse accounts receivable accruals from prior years that were not properly reversed. (56,173)

Total Nonmajor Governmental Funds 208,643

Total Fund Balances and Net Assets restatements 150,520$

53

CITY OF BELL GARDENS NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2011 Note 14: Transactions with the State of California

SERAF Shift for fiscal year 2010-2011 On July 23, 2009, the State adopted legislation, requiring a shift of monies during fiscal years 2009-2010 and 2010-2011 to be deposited into the County “Supplemental” Educational Revenue Augmentation Fund (SERAF). These monies were to be distributed to meet the State’s Prop 98 obligations to schools. The California Redevelopment Association (CRA) and its member agencies filed a legal action in an attempt to stop these amounts from having to be paid; however, in May 2010, the Sacramento Superior Court upheld the legislation. The payment of the SERAF was due on May 10, 2011 for fiscal year 2010-2011 and was made in the amount of $261,810 using available resources from the debt service funds.

Note 15: 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. AB1X 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 AB1X 26 and 27 which allowed a redevelopment agency to continue if it adopted an AB1X 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 AB1X 26 which eliminates redevelopment agencies, but invalidated in its entirety AB1X 27 which allowed redevelopment agencies to continue as long as they made the required payments. AB1X26 established deadlines for the process of Redevelopment Agency dissolution and the handling of existing obligations. The Court extended certain deadlines of AB1X 26 in its ruling by four months. The full text of AB1X 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.

�

54


55


COMBINING BALANCE SHEETNONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2011

Assets:Cash and investments 7$ 8,844$ 74,072$ 120,412$Receivables:

Accounts - - - -Notes and loans - - - -Accrued interest - 23 - 2

Due from other governments - 15,375 12,735 139,515

Total Assets 7$ 24,242$ 86,807$ 259,929$

Liabilities and Fund Balances:Liabilities:Accounts payable -$ 17,483$ 17,484$ 221,103$Accrued liabilities - - - 1,258Deferred revenues - - - -Unearned revenues - - - -Due to other governments - - - -Due to other funds - - - -

Total Liabilities - 17,483 17,484 222,361

Fund Balances:

CLEEP Grant Public Safety Augmentation

COPS State (SLESF) State Gas Tax

Special Revenue Funds

Fund Balances: Restricted for: Public safety 7 6,759 69,323 - Community development - - - - Parks and recreation - - - - Public works - - - 37,568 Capital Projects - - - - Committed to: Post employment benefits - - - - Unassigned - - - -

Total Fund Balances 7 6,759 69,323 37,568

Total Liabilities and Fund Balances 7$ 24,242$ 86,807$ 259,929$

56


COMBINING BALANCE SHEETNONMAJOR GOVERNMENTAL FUNDSJUNE 30, 2011



Due from other governments

Total Assets

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

Total Liabilities

Fund Balances:

(Continued)

691,828$ 1,118,239$ -$ 476,372$

- - - -- - 1,678,663 -

42 126 - -36,002 93,004 222,760 74,442

727,872$ 1,211,369$ 1,901,423$ 550,814$

401$ 156,556$ 39,257$ 8,893$- 456 - 1,517- - 1,678,663 74,442- - - -- - - -- - 186,824 -

401 157,012 1,904,744 84,852


Asset Forfeiture

Waste Management

Community Development Block Grant

Proposition "A"

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

Total Fund Balances


727,471 - - -- - - -- - - -- 1,054,357 - 465,962- - - -

- - - -- - (3,321) -

727,471 1,054,357 (3,321) 465,962

727,872$ 1,211,369$ 1,901,423$ 550,814$

57






Total Assets


Total Liabilities

Fund Balances:

-$ 1,921$ 89,891$ 429,362$

- - - -- - - 749,533

61 3 6 36- 65,041 - -

61$ 66,965$ 89,897$ 1,178,931$

159,976$ 4,720$ 6,891$ -$- - 44 -- 65,041 - 749,533- - - -- - - -

398,871 - 134,862 -

558,847 69,761 141,797 749,533


Proposition "C"

Air Quality Improvement

Recycling Grants

Academic Pursuit


Total Fund Balances


- - - -- - - 429,398- - - -- - - -- - - -

- - - -(558,786) (2,796) (51,900) -

(558,786) (2,796) (51,900) 429,398

61$ 66,965$ 89,897$ 1,178,931$

58






Total Assets


Total Liabilities

Fund Balances:

(Continued)

-$ 778,271$ 270$ 1,960$

- - - -- - - -- 119 - -- - - -

-$ 778,390$ 270$ 1,960$

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

215,024 - - -

215,024 99 - -

Separated Employee Benefits

Post Employment

Benefits OJJDP Boxing COPS Tech



Total Fund Balances


- - 270 1,960- - - -- - - -- - - -- - - -

- 778,291 - -(215,024) - - -

(215,024) 778,291 270 1,960

-$ 778,390$ 270$ 1,960$

59






Total Assets


Total Liabilities

Fund Balances:

472,611$ 165$ 25,611$ -$

- - - -- - - -- - - -- - - 46,224

472,611$ 165$ 25,611$ 46,224$

-$ -$ -$ -$- - - -- - - 23,112- - 25,598 -- - - -- - - 23,112

- - 25,598 46,224

Measure R ABC Grant JAG Grants

2008 State Homeland

Security Grant



Total Fund Balances


- 165 13 -- - - -- - - -

472,611 - - -- - - -

- - - -- - - -

472,611 165 13 -

472,611$ 165$ 25,611$ 46,224$

60






Total Assets


Total Liabilities

Fund Balances:

(Continued)

-$ 243,949$ -$ 482,172$

- 4,386 1,569 30,000- - - -- - - -

127,047 - - 195,548

127,047$ 248,335$ 1,569$ 707,720$

-$ 50,228$ -$ 922,759$- - - -- - - 225,548- - - -- 74,253 - -

202,927 - 777 -

202,927 124,481 777 1,148,307

COPS 2010 Grant

Anson Ford Park

Transportation Development

Act

Capital Improvement

Projects

Special Revenue Funds Capital Projects Funds


Total Fund Balances


- - - -- - - -- 123,854 - -- - - -- - 792 -

- - - -(75,880) - - (440,587)

(75,880) 123,854 792 (440,587)

127,047$ 248,335$ 1,569$ 707,720$

61






Total Assets


Total Liabilities

Fund Balances:

TotalNonmajor

Governmental

Funds

5,015,957$

35,9552,428,196

4181,027,693

8,508,219$

1,605,751$3,374

2,816,33925,59874,253

1,162,397

5,687,712


Total Fund Balances


805,968429,398123,854

2,030,498792

778,291(1,348,294)

2,820,507

8,508,219$

62


63


COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCESNONMAJOR GOVERNMENTAL FUNDSYEAR ENDED JUNE 30, 2011

Revenues:Taxes -$ -$ -$ -$Intergovernmental - 86,450 100,000 1,160,194Charges for services - 1,878 - -Use of money and property - - 302 328Fines and forfeitures - - - -Contributions - - - -Miscellaneous - - - -

Total Revenues - 88,328 100,302 1,160,522

Expenditures:Current: General government - - - - Public safety - 209,809 209,810 - Community development - - - - Parks and recreation - - - - Public works - - - 1,504,416Capital outlay - - - -Debt service: Principal retirement - - - - Interest and fiscal charges - - - -

CLEEP Grant Public Safety Augmentation

COPS State (SLESF)

State Gas Tax


g

Total Expenditures - 209,809 209,810 1,504,416

Excess (Deficiency) of Revenues Over (Under) Expenditures - (121,481) (109,508) (343,894)

Other Financing Sources (Uses):Transfers in - 150,000 - -Transfers out - - - -

Total Other Financing Sources (Uses) - 150,000 - -

Net Change in Fund Balances -$ 28,519$ (109,508)$ (343,894)$

Fund Balances:Beginning of year, as originally reported 7$ (21,760)$ 178,831$ 381,462$ Restatements - - - -

Beginning of year, as restated 7 (21,760) 178,831 381,462 Net change in fund balances - 28,519 (109,508) (343,894)

End of Year 7$ 6,759$ 69,323$ 37,568$

64



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

(Continued)

-$ 2,036,058$ -$ 632,769$- - 1,243,420 -- - - -

1,164 2,421 - -337,322 - - -

- - - -- - - -

338,486 2,038,479 1,243,420 632,769

- - - -31,739 - - -

- - 373,901 -- - - -- 2,324,597 - 239,774

37,610 - 276,830 -

- - 348,000 -- - 200,730 -

Waste Management

Community Development Block Grant

Proposition "A"


Asset Forfeiture

g

Total Expenditures






Beginning of year, as restated Net change in fund balances

End of Year

,

69,349 2,324,597 1,199,461 239,774

269,137 (286,118) 43,959 392,995

- - - 753,645- - - -

- - - 753,645

269,137$ (286,118)$ 43,959$ 1,146,640$

193,518$ 1,340,475$ (47,280)$ (680,678)$264,816 - - -

458,334 1,340,475 (47,280) (680,678)269,137 (286,118) 43,959 1,146,640

727,471$ 1,054,357$ (3,321)$ 465,962$

65




Total Revenues


525,564$ -$ -$ -$- 40,331 28,104 -

81,887 - - -1,380 35 211 970

- - - -- - - -- - - 9,332

608,831 40,366 28,315 10,302

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

1,051,176 18,448 11,074 -107,116 54,828 3,865 -

- - - -- - - -

Academic Pursuit

Proposition "C"

Air Quality Improvement

Recycling Grants


g

Total Expenditures







End of Year

1,158,292 73,276 14,939 -

(549,461) (32,910) 13,376 10,302

- - - -(753,645) - - -

(753,645) - - -

(1,303,106)$ (32,910)$ 13,376$ 10,302$

744,320$ 30,114$ (65,276)$ 419,096$- - - -

744,320 30,114 (65,276) 419,096(1,303,106) (32,910) 13,376 10,302

(558,786)$ (2,796)$ (51,900)$ 429,398$

66




Total Revenues


(Continued)

-$ -$ -$ -$- - 270 -- 45,006 - -- 2,165 - -- - - -- - - -

7,739 - - -

7,739 47,171 270 -

55,604 395,486 - -- - - -- - - -- - - -- - - -- - - -

- - - -- - - -

COPS Tech

SeparatedEmployee Benefits

PostEmployment

Benefits OJJDP Boxing


g

Total Expenditures







End of Year

55,604 395,486 - -

(47,865) (348,315) 270 -

- - - -- - - -

- - - -

(47,865)$ (348,315)$ 270$ -$

(167,159)$ 1,126,606$ -$ 1,960$- - - -

(167,159) 1,126,606 - 1,960(47,865) (348,315) 270 -

(215,024)$ 778,291$ 270$ 1,960$

67




Total Revenues


-$ -$ -$ -$392,322 20,047 - -

- - - -912 64 13 -

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

393,234 20,111 13 -

- - - -- 6,323 - -- - - -- - - -- - - -

205,156 - - -

- - - -- - - -

ABC Grant JAG Grants

2008 State Homeland

Security Grant Measure R


g

Total Expenditures







End of Year

205,156 6,323 - -

188,078 13,788 13 -

- - - -- - - -

- - - -

188,078$ 13,788$ 13$ -$

284,533$ (13,623)$ -$ -$- - - -

284,533 (13,623) - -188,078 13,788 13 -

472,611$ 165$ 13$ -$

68




Total Revenues


(Continued)

-$ -$ -$ -$360,597 - 18,824 416,532

- 93,141 - -- 160,728 - -- - - -- - - 70,000- 1,927 - -

360,597 255,796 18,824 486,532

- - - -436,477 - - -

- - - -- 216,563 - -- - - -- 25,388 18,032 1,566,158

- - - -- - - -

Transportation Development

Act

Capital Improvement

Projects Anson Ford

Park COPS 2010

Grant

Special Revenue Funds Capital Projects Funds

g

Total Expenditures







End of Year

436,477 241,951 18,032 1,566,158

(75,880) 13,845 792 (1,079,626)

- - - 101,076- - - -

- - - 101,076

(75,880)$ 13,845$ 792$ (978,550)$

-$ 166,182$ -$ 537,963$- (56,173) - -

- 110,009 - 537,963(75,880) 13,845 792 (978,550)

(75,880)$ 123,854$ 792$ (440,587)$

69




Total Revenues


TotalNonmajor

GovernmentalFunds

3,194,391$3,867,091

221,912170,693337,322

70,00018,998

7,880,407

451,090894,158373,901216,563

5,149,4852,294,983

348,000200,730g

Total Expenditures







End of Year

,

9,928,910

(2,048,503)

1,004,721(753,645)

251,076

(1,797,427)$

4,409,291$208,643

4,617,934(1,797,427)

2,820,507$

70


BUDGETARY COMPARISON SCHEDULEPUBLIC SAFETY AUGMENTATIONYEAR ENDED JUNE 30, 2011



Budgetary Fund Balance, July 1 (21,760)$ (21,760)$ (21,760)$ -$ Resources (Inflows):Intergovernmental 91,000 91,000 86,450 (4,550) Charges for services - - 1,878 1,878 Transfers in 150,000 150,000 150,000 -

Amounts Available for Appropriations 219,240 219,240 216,568 (2,672)

Charges to Appropriations (Outflow):Public safety 216,104 216,104 209,809 6,295

Total Charges to Appropriations 216,104 216,104 209,809 6,295

Budgetary Fund Balance, June 30 3,136$ 3,136$ 6,759$ 3,623$

71


BUDGETARY COMPARISON SCHEDULECOPS STATE (SLESF)YEAR ENDED JUNE 30, 2011



Budgetary Fund Balance, July 1 178,831$ 178,831$ 178,831$ -$ Resources (Inflows):Intergovernmental 100,000 100,000 100,000 - Use of money and property - - 302 302

Amounts Available for Appropriations 278,831 278,831 279,133 302

Charges to Appropriations (Outflow):Public safety 216,104 216,104 209,810 6,294



72


BUDGETARY COMPARISON SCHEDULESTATE GAS TAXYEAR ENDED JUNE 30, 2011



Budgetary Fund Balance, July 1 381,462$ 381,462$ 381,462$ -$ Resources (Inflows):Intergovernmental 1,199,960 1,199,960 1,160,194 (39,766) Use of money and property - - 328 328

Amounts Available for Appropriations 1,581,422 1,581,422 1,541,984 (39,438)

Charges to Appropriations (Outflow):Public works 1,265,715 1,825,088 1,504,416 320,672 Capital outlay 1,000 1,000 - 1,000

Total Charges to Appropriations 1,266,715 1,826,088 1,504,416 321,672

Budgetary Fund Balance, June 30 314,707$ (244,666)$ 37,568$ 282,234$

73


BUDGETARY COMPARISON SCHEDULEASSET FORFEITUREYEAR ENDED JUNE 30, 2011



Budgetary Fund Balance, July 1, as restated 458,334$ 458,334$ 458,334$ -$ Resources (Inflows):Use of money and property - - 1,164 1,164 Fines and forfeitures 100,000 100,000 337,322 237,322 Transfers in - - - -

Amounts Available for Appropriations 558,334 558,334 796,820 238,486

Charges to Appropriations (Outflow):Public safety 32,029 32,029 31,739 290 Capital outlay 55,000 55,000 37,610 17,390 Transfers out - - - -



74


BUDGETARY COMPARISON SCHEDULEWASTE MANAGEMENTYEAR ENDED JUNE 30, 2011



Budgetary Fund Balance, July 1 1,340,475$ 1,340,475$ 1,340,475$ -$ Resources (Inflows):Taxes 2,160,924 2,160,924 2,036,058 (124,866) Use of money and property - - 2,421 2,421


Charges to Appropriations (Outflow):Public works 2,374,603 2,374,603 2,324,597 50,006 Transfers out 650,000 650,000 - 650,000

Total Charges to Appropriations 3,024,603 3,024,603 2,324,597 700,006

Budgetary Fund Balance, June 30 476,796$ 476,796$ 1,054,357$ 577,561$

75


BUDGETARY COMPARISON SCHEDULECOMMUNITY DEVELOPMENT BLOCK GRANTYEAR ENDED JUNE 30, 2011



Budgetary Fund Balance, July 1 (47,280)$ (47,280)$ (47,280)$ -$ Resources (Inflows):Intergovernmental 952,234 952,234 1,243,420 291,186

Amounts Available for Appropriations 904,954 904,954 1,196,140 291,186

Charges to Appropriations (Outflow):Community development 370,518 624,681 373,901 250,780 Capital outlay - 130,000 276,830 (146,830) Debt service: Principal retirement 348,000 348,000 348,000 - Interest and fiscal charges 200,730 200,730 200,730 -

Total Charges to Appropriations 919,248 1,303,411 1,199,461 103,950

Budgetary Fund Balance, June 30 (14,294)$ (398,457)$ (3,321)$ 395,136$

76


BUDGETARY COMPARISON SCHEDULEPROPOSITION "A"YEAR ENDED JUNE 30, 2011



Budgetary Fund Balance, July 1, as restated (680,678)$ (680,678)$ (680,678)$ -$ Resources (Inflows):Taxes 630,577 630,577 632,769 2,192 Intergovernmental 75,000 75,000 - (75,000) Transfers in - - 753,645 753,645

Amounts Available for Appropriations 24,899 24,899 705,736 680,837

Charges to Appropriations (Outflow):Public works 369,047 369,047 239,774 129,273


Budgetary Fund Balance, June 30 (344,148)$ (344,148)$ 465,962$ 810,110$

77


BUDGETARY COMPARISON SCHEDULEPROPOSITION "C"YEAR ENDED JUNE 30, 2011



Budgetary Fund Balance, July 1, as restated 744,320$ 744,320$ 744,320$ -$ Resources (Inflows):Taxes 523,047 523,047 525,564 2,517 Charges for services 71,052 71,052 81,887 10,835 Use of money and property - - 1,380 1,380

Amounts Available for Appropriations 1,338,419 1,338,419 1,353,151 14,732

Charges to Appropriations (Outflow):Public works 1,013,683 1,013,683 1,051,176 (37,493) Capital outlay - 103,725 107,116 (3,391) Debt service:Transfers out - - 753,645 (753,645)

Total Charges to Appropriations 1,013,683 1,117,408 1,911,937 (794,529)

Budgetary Fund Balance, June 30 324,736$ 221,011$ (558,786)$ (779,797)$

78


BUDGETARY COMPARISON SCHEDULEAIR QUALITY IMPROVEMENTYEAR ENDED JUNE 30, 2011



Budgetary Fund Balance, July 1 30,114$ 30,114$ 30,114$ -$ Resources (Inflows):Intergovernmental 110,736 110,736 40,331 (70,405) Use of money and property - - 35 35


Charges to Appropriations (Outflow):Public works 16,000 16,000 18,448 (2,448) Capital outlay 95,736 95,736 54,828 40,908


Budgetary Fund Balance, June 30 29,114$ 29,114$ (2,796)$ (31,910)$

79


BUDGETARY COMPARISON SCHEDULERECYCLING GRANTSYEAR ENDED JUNE 30, 2011



Budgetary Fund Balance, July 1 (65,276)$ (65,276)$ (65,276)$ -$ Resources (Inflows):Intergovernmental 11,000 11,000 28,104 17,104 Use of money and property - - 211 211

Amounts Available for Appropriations (54,276) (54,276) (36,961) 17,315

Charges to Appropriations (Outflow):Public works 12,614 12,614 11,074 1,540 Capital outlay 70,000 70,000 3,865 66,135



80


BUDGETARY COMPARISON SCHEDULEACADEMIC PURSUITYEAR ENDED JUNE 30, 2011



Budgetary Fund Balance, July 1 419,096$ 419,096$ 419,096$ -$ Resources (Inflows):Use of money and property - - 970 970 Miscellaneous 20,000 20,000 9,332 (10,668)


Charges to Appropriations (Outflow):General government 25,000 25,000 - 25,000

Total Charges to Appropriations 25,000 25,000 - 25,000


81


BUDGETARY COMPARISON SCHEDULESEPARATED EMPLOYEE BENEFITSYEAR ENDED JUNE 30, 2011



Budgetary Fund Balance, July 1 (167,159)$ (167,159)$ (167,159)$ -$ Resources (Inflows):Miscellaneous - - 7,739 7,739

Amounts Available for Appropriations (167,159) (167,159) (159,420) 7,739

Charges to Appropriations (Outflow):General government 50,000 50,000 55,604 (5,604)

Total Charges to Appropriations 50,000 50,000 55,604 (5,604)


82


BUDGETARY COMPARISON SCHEDULEPOST EMPLOYMENT BENEFITSYEAR ENDED JUNE 30, 2011



Budgetary Fund Balance, July 1 1,126,606$ 1,126,606$ 1,126,606$ -$ Resources (Inflows):Charges for services 45,000 45,000 45,006 6 Use of money and property - - 2,165 2,165

Amounts Available for Appropriations 1,171,606 1,171,606 1,173,777 2,171

Charges to Appropriations (Outflow):General government 210,700 210,700 395,486 (184,786)


Budgetary Fund Balance, June 30 960,906$ 960,906$ 778,291$ (182,615)$

83


BUDGETARY COMPARISON SCHEDULEMEASURE RYEAR ENDED JUNE 30, 2011



Budgetary Fund Balance, July 1 284,533$ 284,533$ 284,533$ -$ Resources (Inflows):Intergovernmental 392,285 392,285 392,322 37 Use of money and property - - 912 912

Amounts Available for Appropriations 676,818 676,818 677,767 949

Charges to Appropriations (Outflow):Capital outlay 442,000 666,007 205,156 460,851



84


BUDGETARY COMPARISON SCHEDULECOPS 2010 GRANTSYEAR ENDED JUNE 30, 2011



Budgetary Fund Balance, July 1 -$ -$ -$ -$ Resources (Inflows):Intergovernmental 389,615 389,615 360,597 (29,018)


Charges to Appropriations (Outflow):Public safety 389,615 389,615 436,477 (46,862)


Budgetary Fund Balance, June 30 -$ -$ (75,880)$ (75,880)$

85


BUDGETARY COMPARISON SCHEDULEANSON FORD PARKYEAR ENDED JUNE 30, 2011



Budgetary Fund Balance, July 1, as restated 110,009$ 110,009$ 110,009$ -$ Resources (Inflows):Charges for services 90,000 90,000 93,141 3,141 Use of money and property 150,000 150,000 160,728 10,728 Miscellaneous - - 1,927 1,927 Transfers in 100,000 100,000 - (100,000)


Charges to Appropriations (Outflow):Parks and recreation 220,400 220,400 216,563 3,837 Capital outlay 25,000 25,000 25,388 (388)


Budgetary Fund Balance, June 30 204,609$ 204,609$ 123,854$ (80,755)$

86


BUDGETARY COMPARISON SCHEDULETRANSPORTATION DEVELOPMENT ACTYEAR ENDED JUNE 30, 2011



Budgetary Fund Balance, July 1 -$ -$ -$ -$ Resources (Inflows):Intergovernmental 18,824 18,824 18,824 -

Amounts Available for Appropriations 18,824 18,824 18,824 -

Charges to Appropriations (Outflow):Capital outlay 18,824 18,824 18,032 792

Total Charges to Appropriations 18,824 18,824 18,032 792

Budgetary Fund Balance, June 30 -$ -$ 792$ 792$

87


BUDGETARY COMPARISON SCHEDULECAPITAL IMPROVEMENT PROJECTSYEAR ENDED JUNE 30, 2011



Budgetary Fund Balance, July 1 537,963$ 537,963$ 537,963$ -$ Resources (Inflows):Intergovernmental 1,993,639 2,310,499 416,532 (1,893,967)Contributions - - 70,000 70,000Transfers in 109,000 206,500 101,076 (105,424)

Amounts Available for Appropriations 2,640,602 3,054,962 1,125,571 (1,929,391)

Charges to Appropriations (Outflow):Capital outlay 2,102,639 3,694,306 1,566,158 2,128,148


Budgetary Fund Balance, June 30 537,963$ (639,344)$ (440,587)$ 198,757$

88


BUDGETARY COMPARISON SCHEDULECOMMUNITY DEVELOPMENT COMMISSION - CAPITAL PROJECTSYEAR ENDED JUNE 30, 2011



Budgetary Fund Balance, July 1, as restated (52,089,462)$ (52,089,462)$ (52,089,462)$ -$ Resources (Inflows):Taxes 781,000 781,000 745,576 (35,424)Use of money and property 381,590 381,590 595,246 213,656Miscellaneous 37,200 37,200 52,500 15,300

Amounts Available for Appropriations (50,889,672) (50,889,672) (50,696,140) 193,532

Charges to Appropriations (Outflow):General government 3,017,372 3,017,372 1,322,169 1,695,203Community development 4,500,000 4,500,000 1,046,097 3,453,903Capital outlay 200,000 200,000 30,407 169,593


Budgetary Fund Balance, June 30 (58,607,044)$ (58,607,044)$ (53,094,813)$ 5,512,231$

89


BUDGETARY COMPARISON SCHEDULECOMMUNITY DEVELOPMENT COMMISSION - DEBT SERVICEYEAR ENDED JUNE 30, 2011



Budgetary Fund Balance, July 1, as restated 11,992,433$ 11,992,433$ 11,992,433$ -$ Resources (Inflows):Taxes 3,120,000 3,120,000 2,982,303 (137,697)Use of money and property 25,000 25,000 24,272 (728)


Charges to Appropriations (Outflow):General government 382,000 382,000 633,896 (251,896)Debt service: Principal retirement 950,644 950,644 912,644 38,000 Interest and fiscal charges 1,678,513 1,678,513 1,678,513 -

Total Charges to Appropriations 3,011,157 3,011,157 3,225,053 (213,896)

Budgetary Fund Balance, June 30 12,126,276$ 12,126,276$ 11,773,955$ (352,321)$

90

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.

91


92

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

2007 2008 2009 2010 2011

Governmental activitiesInvested in capital assets, net of related debt 54,608,728$ 58,383,063$ 72,643,986$ 73,967,264$ 74,822,075$ Restricted 16,130,908 17,172,343 17,896,542 17,088,677 17,354,065 Unrestricted 35,608,537 32,303,477 12,851,973 10,390,101 4,804,396

Total governmental activities net assets 106,348,173$ 107,858,883$ 103,392,501$ 101,446,042$ 96,980,536$

Business-type activitiesInvested in capital assets, net of related debt 474,856$ 584,837$ 2,816,150$ 3,429,948$ 3,480,128$ Restricted 405,014 400,688 398,665 398,434 399,355 Unrestricted 1,352,304 985,558 (357,093) 397,551 251,365

Total business-type activities net assets 2,232,174$ 1,971,083$ 2,857,722$ 4,225,933$ 4,130,848$

Primary governmentInvested in capital assets, net of related debt 55,083,584$ 58,967,900$ 75,460,136$ 77,397,212$ 78,302,203$ Restricted 16,535,922 17,573,031 18,295,207 17,487,111 17,753,420 Unrestricted 36,960,841 33,289,035 12,494,880 10,787,652 5,055,761

Total primary government net assets 108,580,347$ 109,829,966$ 106,250,223$ 105,671,975$ 101,111,384$

Fiscal Year

93

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

2007 2008 2009 2010 2011ExpensesGovernmental activities:

General government 5,425,229$ 5,873,384$ 9,601,844$ 10,175,559$ 8,821,722$ Public safety 12,090,819 12,807,592 13,071,462 12,965,767 12,393,794 Public works 7,970,239 1,582,498 1,600,209 1,220,075 2,241,756 Community Development 1,026,470 2,854,086 2,667,195 2,485,134 2,838,313 Recreation 2,331,506 8,306,894 10,071,329 9,941,721 10,146,753 Interest and fiscal charges 2,163,952 2,209,835 4,996,806 4,857,978 1,972,014

Total governmental activities expenses 31,008,215 33,634,289 42,008,845 41,646,234 38,414,352Business-type activities:

Water 2,033,270 1,553,849 1,728,215 1,460,206 1,532,393 Golf Course 189,065 365,164 335,189 251,694 216,584

Total business-type activities expenses 2,222,335 1,919,013 2,063,404 1,711,900 1,748,977Total primary government expenses 33,230,550$ 35,553,302$ 44,072,249$ 43,358,134$ 40,163,329$

Program Revenues Governmental activities:

Charges for services: 1,094,538$ 1,370,094$ 1,474,708$ 1,380,147$ 1,651,510$ Operating grants and contributions 2,358,076 1,460,457 1,905,933 3,159,241 2,146,983 Capital grants and contributions 1,222,983 1,129,689 2,524,654 3,791,143 1,839,711

Total governmental activities program revenues 4,675,597 3,960,240 5,905,295 8,330,531 5,638,204Business-type activities:

Charges for services: Water 1,274,800 1,434,590 1,257,433 1,235,559 1,249,287 Golf Course 152,759 185,643 199,096 186,433 152,569

Total business-type activities program revenues 1,427,559 1,620,233 1,456,529 1,421,992 1,401,856Total primary government program revenues 6,103,156$ 5,580,473$ 7,361,824$ 9,752,523$ 7,040,060$

Fiscal Year

94

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

2007 2008 2009 2010 2011Net (Expense)/RevenueGovernmental activities (26,332,618)$ (29,674,049)$ (36,103,550)$ (33,315,703)$ (32,776,148)$ Business-type activities (1,021,607) (298,780) (591,875) (289,908) (347,121)Total primary government net expense (27,354,225)$ (29,972,829)$ (36,695,425)$ (33,605,611)$ (33,123,269)$

General Revenues and Other Changes in Net AssetsGovernmental activities:

TaxesSales taxes 3,619,193$ 2,187,115$ 2,086,198$ 2,030,961$ 2,321,800$ Property taxes 4,184,141 4,650,564 4,908,149 4,886,712 4,696,696 Other taxes 18,100,953 20,062,895 19,188,075 18,661,906 17,853,565

Use of money and property 4,581,829 4,261,200 5,175,607 6,630,950 3,281,827 Others 308,314 241,528 167,393 303,354 249,606

Total governmental activities 30,794,430 31,403,302 31,525,422 32,513,883 28,403,494Business-type activities:

Investment earnings 59,662 28,633 10,266 6,778 8,664 Miscellaneous 6,791 9,056 - - -

Total business-type activities 66,453 37,689 10,266 6,778 8,664Total primary government 30,860,883$ 31,440,991$ 31,535,688$ 32,520,661$ 28,412,158$

Change in Net AssetsGovernmental activities 4,461,812$ 1,729,253$ (4,578,128)$ (801,820)$ (4,372,654)$ Business-type activities (955,154) (261,091) (581,609) (283,130) (338,457)Total primary government 3,506,658$ 1,468,162$ (5,159,737)$ (1,084,950)$ (4,711,111)$

Fiscal Year

95

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

2007 2008 2009 2010 2011

Function/ProgramGovernmental activities:

General government 495,315$ 294,816$ 791,155$ 819,452$ 207,740$ Public safety 1,078,436 878,321 1,363,986 1,894,446 1,485,166 Public works 1,251,113 1,912,078 2,310,181 4,140,166 2,507,890 Community Development 1,653,975 569,354 1,194,013 1,231,704 1,157,639 Recreation 196,758 305,671 245,960 244,763 279,769

Subtotal governmental activities 4,675,597 3,960,240 5,905,295 8,330,531 5,638,204Business-type activities:

Water 1,274,800 1,434,590 1,257,433 1,235,559 1,249,287 Golf Course 159,550 185,643 214,096 186,433 152,569

Subtotal business-type activities 1,434,350 1,620,233 1,471,529 1,421,992 1,401,856Total primary government 6,109,947$ 5,580,473$ 7,376,824$ 9,752,523$ 7,040,060$

Fiscal Year

96

City

of B

ell G

arde

nsFu

nd B

alan

ces,

Gov

ernm

enta

l Fun

ds,

Last

Ten

Fis

cal Y

ears

(mod

ified

acc

rual

bas

is o

f acc

ount

ing)

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

Gen

eral

Fun

dR

eser

ved

24,8

05,5

81$

27

,091

,253

$

27,0

91,2

53$

34

,015

,965

$

34,1

68,6

52$

33

,874

,087

$

31,5

86,0

07$

29

,533

,393

$

28,1

92,3

77$

U

nres

erve

d8,

746,

923

5,

500,

140

6,

660,

359

(104

,175

)2,

586,

628

2,91

6,57

5

760,

914

5,66

3,39

07,

885,

063

Non

spen

dabl

e31

,101

,324

Res

trict

ed2,

653,

435

Com

mitt

ed1,

500,

000

Ass

igne

d4,

788,

238

Una

ssig

ned

-

Tota

l gen

eral

fund

33,5

52,5

04$

32

,591

,393

$

33,7

51,6

12$

33

,911

,790

$

36,7

55,2

80$

36

,790

,662

$

32,3

46,9

21$

35

,196

,783

$

36,0

77,4

40$

40

,042

,997

$

All

Oth

er G

over

nmen

tal F

unds

Res

erve

d24

,905

,690

$

32,7

40,2

30$

35

,014

,898

$

31,1

85,0

98$

23

,140

,763

$

26,3

46,3

70$

23

,533

,346

$

6,44

4,81

3$

3,79

0,62

2$

Unr

eser

ved,

repo

rted

in:

Spe

cial

reve

nue

fund

s1,

095,

556

2,

025,

677

2,

087,

509

2,

292,

088

3,

534,

142

1,

271,

134

2,

712,

006

4,

517,

811

3,

517,

293

C

apita

l pro

ject

s fu

nds

(65,

851,

349)

(57,

461,

230)

(61,

246,

257)

(34,

713,

969)

(35,

801,

626)

(34,

850,

737)

(31,

878,

388)

(53,

943,

090)

(52,

969,

266)

Deb

t ser

vice

fund

s-

--

-10

,417

,926

11,2

34,3

49

12,9

74,7

6613

,121

,160

12,1

01,5

54

Non

spen

dabl

e3,

907,

450

Res

trict

ed14

,277

,135

Com

mitt

ed77

8,29

1A

ssig

ned

-

U

nass

igne

d(5

7,46

3,22

7)

Tota

l all

othe

r gov

ernm

enta

l fun

ds(3

9,85

0,10

3)$

(2

2,69

5,32

3)$

(2

4,14

3,85

0)$

(1

,236

,783

)$

1,

291,

205

$

4,00

1,11

6$

7,

341,

730

$

(29,

859,

306)

$

(33,

559,

797)

$

(38,

500,

351)

$

Fisc

al Y

ear

97

City

of B

ell G

arde

nsC

hang

es in

Fun

d B

alan

ces,

Gov

ernm

enta

l Fun

ds,

Last

Ten

Fis

cal Y

ears

(mod

ified

acc

rual

bas

is o

f acc

ount

ing) 20

0220

0320

0420

0520

0620

0720

0820

0920

1020

11R

even

ues

Taxe

s (s

ee S

ched

ule

6)13

,932

,327

$

13,4

31,9

85$

15

,115

,703

$

16,4

22,6

94$

21

,365

,783

$

22,7

62,2

69$

24

,001

,964

$

23,2

15,9

56$

22

,397

,036

$

20,7

97,5

93$

Li

cens

es a

nd p

erm

its28

3,98

6

28

7,17

1

29

2,10

6

36

8,15

2

49

7,98

0

36

1,51

0

27

0,40

8

25

8,30

3

27

1,02

4

42

5,57

9

Fi

nes

and

forfe

iture

s35

3,73

0

31

3,93

5

34

8,32

7

38

4,69

6

48

1,64

3

44

2,51

3

52

0,41

0

56

9,56

1

36

5,60

2

66

5,88

8

U

se o

f mon

ey a

nd p

rope

rty3,

563,

181

3,

516,

356

3,

138,

976

3,

499,

560

3,

839,

828

6,

675,

935

4,

573,

273

4,

062,

189

4,

860,

235

5,

208,

244

Fr

om o

ther

Age

ncie

s5,

146,

644

8,

235,

920

6,

252,

389

8,

073,

251

5,

780,

814

4,

518,

060

5,

922,

632

7,

549,

280

9,

839,

425

8,

135,

923

C

harg

es fo

r ser

vice

s55

3,22

2

39

0,97

0

35

6,52

2

52

6,72

1

38

3,92

5

52

9,70

9

57

9,27

6

53

4,91

8

46

5,30

9

51

0,03

0

O

ther

reve

nues

952,

252

1,

163,

991

1,

842,

635

2,

723,

112

1,

280,

528

86

4,04

9

641,

667

23

4,09

2

254,

627

42

4,96

3

Tota

l rev

enue

s24

,785

,342

27

,340

,328

27

,346

,658

31

,998

,186

33

,630

,501

36

,154

,045

36

,509

,630

36

,424

,299

38

,453

,258

36

,168

,220

Expe

nditu

res

Gen

eral

gov

ernm

ent

6,64

0,22

7

7,71

9,36

1

4,94

8,15

8

7,75

9,85

7

6,57

8,91

8

5,09

4,74

8

5,31

4,57

6

6,29

0,55

1

6,76

1,24

2

5,51

0,61

5

Pub

lic s

afet

y7,

683,

095

7,

988,

131

8,

228,

354

9,

157,

560

9,

770,

145

11

,925

,675

12,5

67,0

59

13

,123

,483

12,9

03,2

19

12

,357

,221

Pub

lic w

orks

3,30

0,02

8

4,45

8,04

1

4,96

6,57

3

4,66

7,32

8

5,13

8,82

7

6,57

8,25

5

10,1

18,8

33

8,

025,

112

8,

011,

053

8,

360,

219

C

omm

unity

Dev

elop

men

t9,

180,

464

3,

809,

851

3,

663,

070

2,

260,

839

83

4,97

2

1,

009,

672

1,

556,

904

1,

623,

507

1,

185,

669

2,

207,

786

R

ecre

atio

n1,

396,

091

1,

448,

349

1,

975,

354

2,

087,

435

1,

732,

059

2,

313,

549

2,

829,

241

2,

636,

528

2,

470,

040

2,

818,

574

C

apita

l Out

lay

2,05

7,76

7

1,95

2,38

9

2,75

6,81

4

11,1

35,9

45

9,

802,

891

3,

023,

248

2,

262,

313

2,

117,

959

2,

622,

433

2,

412,

065

D

ebt s

ervi

ceIn

tere

st2,

940,

288

1,96

0,41

21,

513,

288

1,49

1,94

31,

956,

692

2,15

3,23

72,

219,

715

4,93

5,07

24,

876,

961

2,04

3,24

1P

rinci

pal

285,

000

378,

808

98,4

7552

7,44

564

5,14

975

8,40

61,

122,

436

1,21

3,60

81,

273,

762

1,34

0,64

4B

ond

Issu

ance

cos

ts-

--

-10

8,45

3

--

- -

-To

tal e

xpen

ditu

res

33,4

82,9

6029

,715

,342

28,1

50,0

8639

,088

,352

36,5

68,1

0632

,856

,790

37,9

91,0

7739

,965

,820

40,1

04,3

7937

,050

,365

Exc

ess

of re

venu

esov

er (u

nder

)ex

pend

iture

s(8

,697

,618

)(2

,375

,014

)(8

03,4

28)

(7,0

90,1

66)

(2,9

37,6

05)

3,29

7,25

5(1

,481

,447

)(3

,541

,521

)(1

,651

,121

)(8

82,1

45)

Fisc

al Y

ear

98

City

of B

ell G

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) 2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

Oth

er F

inan

cing

Sour

ces

(Use

s)

Bon

ds is

sued

-$

27

,705

,000

$

-$

4,

775,

000

$

3,

870,

000

$

-

$

-$

-

$

-$

-

$

Loan

pro

ceed

s-

-

-

1,00

0,00

0

3,43

3,42

0

-

-

-

-

-

P

rem

ium

on

bond

s is

sued

-

-

-

55

2,94

5

-

-

-

-

-

-

Lo

ss o

n sa

le o

f pro

perty

-

-

(486

,216

)

-

-

-

-

-

-

-

P

aym

ents

to e

scro

w a

gent

-

(1

3,50

7,32

5)

-

-

-

-

-

-

-

-

O

ther

deb

ts is

sued

-

-

-

-

-

-

566,

580

-

-

-

Tr

ansf

ers

in44

7,50

0

35

2,36

0

21

5,34

5

4,

496,

559

56

9,06

2

82

,342

173,

783

-

1,

636,

628

1,

248,

721

Tr

ansf

ers

out

(447

,500

)

(352

,360

)

(215

,345

)

(4,4

96,5

59)

(5

69,0

62)

(8

2,34

2)

(173

,783

)

- (3

,103

,184

)

(1,4

92,0

93)

Tota

l oth

er fi

nanc

ing

sou

rces

(use

s)-

14,1

97,6

75

(486

,216

)

6,32

7,94

5

7,30

3,42

0

- 56

6,58

0

- (1

,466

,556

)

(243

,372

)

Net

cha

nge

in fu

nd b

alan

ces

(8,6

97,6

18)

$

11,8

22,6

61$

(1

,289

,644

)$

(7

62,2

21)

$

4,36

5,81

5$

3,

297,

255

$

(914

,867

)$

(3

,541

,521

)$

(3

,117

,677

)$

(1

,125

,517

)$

Deb

t ser

vice

as

a p

erce

ntag

e of

non

capi

tal

exp

endi

ture

s10

.26%

8.43

%6.

35%

7.79

%10

%10

.28%

10.3

2%19

.40%

19.6

4%10

.83%

99

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

2002 2,660,072$ 1,474,359$ 113,846$ 290,548$ 32,128$ 9,566,096$ 14,137,049$ 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

Change110.08% 33.08% 64.98% 11.49% -50.64% 74.99% 75.55% 2001–2010

100

City

of B

ell G

arde

nsA

sses

sed

Valu

e an

d Es

timat

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 A

sses

sed

Tota

l Tax

able

Dire

ctA

ctua

lVa

luea

as a

Fisc

alR

esid

entia

lC

omm

erci

alIn

dust

rial

Mis

cella

neou

sA

sses

sed

Tax

Taxa

ble

Perc

enta

ge o

fYe

arPr

oper

tyPr

oper

tyPr

oper

tyPr

oper

tyVa

lue

Rat

eVa

lue

Act

ual T

axab

le V

alue

2002

591,

898,

050

$

100,

185,

438

$

94,9

96,5

24$

94

,090

,980

$

881,

170,

992

$

1

8,81

1,71

0$

10

000.

000%

2003

614,

266,

319

101,

784,

077

100,

782,

503

96,6

26,9

42

91

3,45

9,84

1

1

9,

134,

598

1000

0.00

0%20

0466

0,94

4,16

1

10

6,30

0,73

0

10

6,85

0,47

9

92

,374

,341

966,

469,

711

1

9,66

4,69

7

10

000.

000%

2005

708,

601,

929

115,

433,

535

110,

152,

149

99,4

42,3

20

1,

033,

629,

933

1

10

,336

,299

10

000.

000%

2006

770,

429,

209

127,

667,

610

112,

101,

508

95,5

79,1

18

1,

105,

777,

445

1

11

,057

,774

10

000.

000%

2007

845,

104,

706

162,

394,

202

121,

576,

893

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%

101

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

2002 1.00 - - 1.00 0.0441 0.0256 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

Source: LA County Assessor 2001/02 - 2010/11 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.

102

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

Florence Eastern Marketplace 36,000,000$ 1 2.48%Burnham Pacific Operating Partnership 19,060,384 2 2.16%Bell Gardens Casino LP 31,713,204 2 2.18%Bell Gardens Bicycle Club 31,435,126 3 2.17% $33,643,892 1 3.82%Primestor Bell Gardens LLC 19,242,010 4 1.33%Primestor El Portal LLC 18,396,974 5 1.27%Wei Chuan International Inc. 16,861,872 6 1.16% $11,198,651 3 1.27%Giraffe Properties LLC 8,498,577 7 0.59%Realty Associates Fund V 7,542,044 8 0.52% 8,036,049 4 0.91%Bell Gardens Hospitality LLC 7,461,610 9 0.51%Suva Montalane Investment LLC 6,939,722 10 0.48%Metal Surfaces Inc. 7,066,934 5 0.80%Haig Kelegian 6,196,179 6 0.70%James P. & Judy A. Berg 5,387,183 7 0.61%Jamers Parkhouse Trust 5,209,349 8 0.59%Mid Cities Paper Box Company Inc. 4,965,400 9 0.56%Toys R Us 4,565,703 10 0.52%Yoo Jin Management Company Ltd.

Total 184,091,139$ 12.69% 105,329,724$ 11.94%

Bell Gardens Bicycle Club

2011 2002

Source: HdL Coren & Cone, Los Angeles County Assessor 2010/11 and 2001/02 Combined Tax Rolls

103

City of Bell GardensProperty Tax Levies and CollectionsLast Ten Fiscal Years

FiscalYear Taxes Levied

Ended for the PercentageJune 30, Fiscal Year Amount of Levy

2002 571,473$ 535,421$ 93.69%2003 590,075 558,605 94.67%2004 856,577 802,210 93.65%2005 921,461 866,965 94.09%2006 992,774 854,809 86.10%2007 999,229 936,278 93.70%2008 1,058,324 968,838 91.54%2009 1,056,288 978,420 92.63%2010 1,037,815 950,706 91.61%2011 1,052,661 961,074 91.30%

Sources: Finance Department records and Los Angeles County Assessors Office

Collected within theFiscal Year of the Levy

104

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

)

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

App

arel

sto

res

4,83

1$

4,

643

$

4,

388

$

5,16

9$

5,

404

$

17,4

32$

28,2

95$

26,8

31$

26,4

93$

30,4

55$

Gen

eral

mer

chan

dise

1,27

8

1,

416

1,

111

1,15

6

1,

139

1,14

9

1,

158

1,25

81,

997

2,17

4Fo

od s

tore

s 14

,638

14

,143

14,6

40

15,2

98

16,3

79

16,2

98

16,4

3416

,812

16,6

0216

,231

Eat

ing

and

drin

king

est

ablis

hmen

ts24

,016

23

,821

25,2

57

35,0

01

35,2

70

37,8

34

39,6

6340

,005

36,5

9936

,575

Bui

ldin

g m

ater

ials

and

farm

tool

s2,

738

2,71

7

3,60

0

3,

814

5,64

4

5,

803

4,71

74,

193

3,57

63,

275

Aut

o de

aler

s an

d su

pplie

s 13

,828

12

,766

14,2

87

17,1

03

19,6

53

17,0

21

17,1

9717

,539

15,3

1316

,036

Ser

vice

sta

tions

18

,261

17

,678

16,3

65

18,1

58

19,5

69

20,3

58

25,7

8840

,026

29,1

6733

,011

Oth

er re

tail

stor

es30

,554

30

,356

28,6

60

31,9

22

33,6

74

33,2

90

36,6

3434

,150

30,5

6932

,136

All

othe

r out

lets

40,7

14

35,6

23

36,3

93

38,8

18

40,3

96

43,1

64

42,7

66

42,8

30

36,2

2938

,002

Tota

l15

0,85

8$

14

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$

City

dire

ct s

ales

tax

rate

1.25

%1.

25%

1.25

%1.

25%

1.25

%1.

25%

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

105

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

City Los StateFiscal Direct Angeles ofYear Rate County California

2002 1.25 1.00 5.752003 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 7.25

Sources: Los Angeles County

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

106

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

2011

Tax Remitter Business Category Tax Remitter

Ana Valero Service Stations Apco Service StationsApplebees Restaurants Liquor Arco AM PM Mini Mart Service StationsAuto Zone Automotive Supply Stores Auto Zone Automotive Supply StoresBicycle Club Casino Restaurants Liquor Bicycle Club Restaurants LiquorBig 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 Chevron Pronto Lube & Tune Service StationsChevron Pronto Lube & Tune Service Stations El Tapatio Foods Grocery Stores Beer/WineEl Pollo Loco Restaurants No Alcohol Enterprise Products Office EquipmentEl Tapatio Foods Grocery Stores Beer/Wine Eurocraft Architectural Met Light Industrial/PrintersFactory 2U Family Apparel Factory 2 U Grocery Stores LiquorUnion 76 Station Service Stations Food 4 Less Grocery Stores LiquorFood 4 Less Grocery Stores Liquor IHOP Restaurants No AlcoholIHOP Restaurants No Alcohol Industrial Forklifts Transportation Non AutoMarshalls Family Apparel John Lisee Pumps Repair Shop/Hand Tool RentMc Donalds Restaurants No Alcohol La Habra Welding Repair Shop/Hand Tool RentMosier Lumber/Building Materials Mc Donalds Restaurants No AlcoholParkhouse Tire Service Automotive Supply Stores Parkhouse Tire Service Automotive Supply StoresPremier Fiesta Mexicana Restaurants Liquor Reds Catering Restaurants No AlcoholRite Aid Drug Stores Rite Aid Drug StoresRoss Department Stores Super A Foods Grocery Stores LiquorSouth West Petroleum Service Stations Toys R Us Specialty StoresSpeedy Fuel Service Stations United R T M Business Service StationsSuper A Foods Grocery Stores Liquor West Coast Accudyne Heavy IndustrialToys R Us Specialty Stores Wilcox Machine Heavy Industrial

Percent of FY Total Paid by Top 25 Accounts 66.50% 61.23%

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

2002

Business Category

107

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 - t

ype

Act

iviti

es

Tax

Cer

tific

ates

Wat

erTo

tal

Perc

enta

geFi

scal

Allo

catio

nR

even

ueN

otes

ofR

even

uePr

imar

yof

Per

sona

lPe

rYe

arB

onds

Bon

dsPa

yabl

ePa

rtic

ipat

ion

Bon

dsG

over

nmen

tIn

com

e C

apita

2002

13,7

70,0

00$

-$

-$

-$

5,13

0,31

8$

18,9

00,3

18$

6.28

%42

9

2003

17,7

05,0

00

-

9,

921,

192

-

5,

032,

144

32

,658

,336

10

.53%

723

20

0417

,705

,000

-

9,82

2,71

7

-

4,96

5,00

0

32,4

92,7

17

9.87

%72

3

2005

17,2

85,0

00

4,77

5,00

0

10

,715

,272

-

5,

240,

000

38

,015

,272

11

.11%

840

20

0616

,755

,000

4,

775,

000

14,0

33,5

43

3,87

0,00

0

-

39,4

33,5

43

-86

9

2007

16,2

10,0

00

4,75

0,00

0

13

,910

,137

3,

805,

000

4,82

0,00

0

43,4

95,1

37

-95

9

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

2009

15,0

75,0

004,

555,

000

13,9

17,6

733,

665,

000

4,42

5,00

041

,637

,673

10.6

7%91

8

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

2011

13,8

65,0

004,

295,

000

12,6

21,2

673,

510,

000

4,01

0,00

038

,301

,267

6.77

%86

9

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

es

108

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

Percentage ofGeneral Actual Taxable

Fiscal Obligation Redevelopment Value of PerYear Bonds 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

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

General Bonded Debt Outstanding

109

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*

Debt repaid with property taxes

Los 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% 262,740

Subtotal, direct and overlapping tax debt 25,468,444$

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% 1,836,478City of Bell Gardens Certificates of Participation 3,590,000 100.000% 3,590,000Los Angeles County Sanitation District No. 2 Authority 34,810,192 2.942% 1,024,117

Subtotal, overlapping debt 7,620,256 Less: Los Angeles County Certificates of Participation (100% self-supporting) from leasehold revenues on properties in Marina Del Rey (347)

7,619,909

City direct debt 33,088,700

Total direct and overlapping debt 33,088,353$

* June 30, 2011 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.

110

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

0A

sses

sed

valu

e1,

451,

776,

564

$

Deb

t lim

it (1

5% o

f ass

esse

d va

lue)

217,

766,

485

D

ebt a

pplic

able

to li

mit:

Gen

eral

obl

igat

ion

bond

s-

Less

: Am

ount

set

asi

de fo

r

r

epay

men

t of g

ener

al

o

blig

atio

n de

bt-

Tota

l net

deb

t app

licab

le to

lim

it-

Lega

l deb

t mar

gin

217,

766,

485

$

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

Deb

t lim

it13

2,17

5,64

9$

13

7,01

8,97

6$

14

4,97

0,45

7$

15

3,65

5,05

6$

16

5,86

6,61

7$

18

5,03

8,36

7$

20

3,20

5,50

8$

216,

069,

180

$

221,

437,

599

$

21

7,76

6,48

5$

Tota

l net

deb

t app

licab

le to

lim

it-

- -

- -

- -

- -

-

Lega

l deb

t mar

gin

132,

175,

649

$

137,

018,

976

$

144,

970,

457

$

153,

655,

056

$

165,

866,

617

$

185,

038,

367

$

203,

205,

508

$

216,

069,

180

$

221,

437,

599

$

217,

766,

485

$

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

inde

bted

ness

.

Fisc

al Y

ear

111

City

of B

ell G

arde

nsPl

edge

d-R

even

ue C

over

age

Last

Ten

Fis

cal Y

ears

Util

ityLe

ss:

Net

Fisc

alSe

rvic

eO

pera

ting

Ava

ilabl

eYe

arC

harg

esEx

pens

esR

even

uePr

inci

pal

Inte

rest

Cov

erag

e

2002

1,08

6,57

5$

83

5,98

1$

250,

594

$

95

,000

$

35

1,34

6$

0.56

20

031,

335,

000

754,

649

58

0,35

1

100,

000

361,

773

1.

26

2004

1,31

6,00

0

1,

494,

351

(178

,351

)

10

5,00

0

34

7,01

5

(0.3

9)

2005

1,33

3,00

0

97

4,45

9

358,

541

11

0,00

0

17

0,56

7

1.28

20

061,

317,

852

1,17

3,92

814

3,92

419

0,00

020

4,38

40.

36

2007

1,27

4,80

01,

945,

581

(670

,781

)19

5,00

020

0,24

1(1

.70)

2008

1,43

4,59

01,

329,

089

105,

501

200,

000

195,

499

0.27

2009

1,24

6,00

02,

087,

433

(841

,433

)20

5,00

019

0,05

2(2

.13)

2010

1,11

3,59

41,

775,

816

(662

,222

)20

5,00

019

0,05

2(1

.68)

2011

1,13

9,95

61,

423,

836

(283

,880

)21

0,00

018

3,69

3(0

.72)

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

112

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

2002

45,1

98

301,

002,

945

$

30,8

28$

11.1

%20

0344

,946

31

0,04

3,50

1

31

,452

11

.5%

2004

45,2

59

329,

048,

068

33,1

79

10.7

%20

0545

,372

34

2,23

1,12

134

,426

8.3%

2006

46,0

44

**

7.3%

2007

46,7

60

**

*20

0846

,766

36

9,17

4,34

8

37

,362

7.

1%20

0946

,786

39

0,29

5,86

5

39

,794

11

.8%

2010

47,0

02

413,

316,

582

42,2

65

11.6

%20

1144

,054

56

5,36

5,00

0

43

,999

1.

1%

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

113

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

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011Function/Program

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

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

Police

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

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

Total 134 134 137 138 145 152 152 152 154 154

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

114

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

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

Func

tion/

Prog

ram

Gen

eral

gov

ernm

ent

Bui

ldin

g pe

rmits

issu

ed31

9

285

32

2

441

49

4

505

368

237

231

281

Pol

ice

Phy

sica

l arr

ests

612

1,

358

1,89

9

1,

818

1,53

1

1,

684

1,31

8

1,

642

1,52

4

1,

586

Par

king

vio

latio

ns4,

044

9,74

8

7,

203

8,81

0

6,

040

7,07

77,

493

7,60

7

5,

614

4,77

7Tr

affic

vio

latio

ns*

*4,

728

4,53

4

4,

495

5,07

95,

819

4,16

2

3,

864

5,13

3R

efus

e co

llect

ion

Ref

use

colle

cted

(ton

s pe

r day

)70

.0

70.0

72

.0

72.0

74

.0

8710

1

93

75

72

R

ecyc

labl

es c

olle

cted

(ton

s pe

r day

)9.

0

9.0

9.

0

11.0

11

.0

2314

11

23

22

O

ther

pub

lic w

orks

Stre

et re

surfa

cing

(mile

s)*

**

1.7

1.

4

07.

5*

1.5

3.2

Pot

hole

s re

paire

d22

5

270

27

5

280

28

0

277

321

28

8

330

29

5

Par

ks a

nd re

crea

tion

Ath

letic

fiel

d pe

rmits

issu

ed

565

776

480

678

275

31

914

7

53

4

14

6

16

5C

omm

unity

cen

ter a

dmis

sion

s14

0,04

7

142,

148

14

4,28

0

146,

444

14

8,64

1

156,

000

163,

800

26

0,40

6

430,

053

40

1,75

8Tr

ansi

tTo

tal r

oute

mile

s*

*18

8,68

7

179,

856

*

**

**

*P

asse

nger

s35

0,85

3

317,

091

31

2,84

4

346,

574

28

3,58

3

287,

996

346,

832

32

2,51

1

**

Sour

ces:

Var

ious

city

dep

artm

ents

.

* In

form

atio

n no

t ava

ilabl

e

Fisc

al Y

ear

115

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

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

Func

tion/

Prog

ram

Pol

ice Sta

tions

1

1

1

1

1

1

11

11

Oth

er p

ublic

wor

ksS

treet

s (m

iles)

386.

4

390.

4

394.

3

398.

3

402.

3

402.

340

2.3

402.

340

2.3

402.

3H

ighw

ays

(mile

s)

107.

4

107.

410

7.4

107.

4

107.

410

7.4

107.

410

7.4

107.

410

7.4

Stre

etlig

hts

7,83

9

7,91

9

7,99

9

8,07

9

8,16

1

8,16

28,

162

8,16

28,

162

8,16

2Tr

affic

sig

nals

101

105

105

106

106

111

111

111

111

111

Par

ks a

nd re

crea

tion

Acr

eage

64

64

64

64

64

6464

6464

64P

layg

roun

ds7

9

9

9

10

1010

1010

10B

aseb

all/s

oftb

all d

iam

onds

30

39

39

39

41

3

33

33

Was

tew

ater

San

itary

sew

ers

(mile

s)46

5.3

47

0.0

47

4.8

47

9.6

48

4.4

48

4.4

48

4.4

48

4.4

48

4.4

48

4.4

Sto

rm s

ewer

s (m

iles)

325.

2

328.

4

331.

8

335.

1

338.

5

338.

5

338.

5

338.

5

338.

5

338.

5Tr

eatm

ent c

apac

ity (t

hous

ands

of g

allo

ns)

3,55

0

3,55

0

3,55

0

3,55

0

4,20

0

4,20

0

4,20

0

4,20

0

4,20

0

4,20

0Tr

ansi

t—S

enio

r Citi

zen

Bus

1

1

1

1

1

1

1

7

7

7

Sour

ces:

Var

ious

city

dep

artm

ents

.N

otes

:No

capi

tal a

sset

indi

cato

rs a

re a

vaila

ble

for t

he g

ener

al g

over

nmen

t fun

ctio

n.

* In

form

atio

n no

t ava

ilabl

e

Fisc

al Y

ear

116

city of bell gardens, california … of bell gardens, california comprehensive annual financial...

Documents