12-20-2005 - Comprehensive Annual Financial Report for Year Ended 06/30/05f�
Ocity of West Covina
16.- MEMORANDUM
TO: Andrew G. Pasmant, City Manager,
and City Council
FROM: Tom Bachman, Director
Finance Department
AGENDA
Item: D-2a
Date: December 20, 2005
SUBJECT: COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR
ENDED JUNE 30, 2005
RECOMMENDATION:
It is recommended that the City Council receive and file the City's Comprehensive Annual
Financial Report for the fiscal year ended June 30, 2005. ,
DISCUSSION:
Each year, independent auditors perform an examination of the financial records of the City and
prepare an audit report on the City's financial statements. The Independent Auditor's Report
issued by Conrad and Associates, LLP, the certified public accounting firm retained by the City,
is included in the City's June 30, 2004 Comprehensive Annual Financial Report (CAFR).
The CAFR includes Management's Discussion and Analysis in the Financial Section, which
provides a simple narrative introduction, overview and analysis of the basic financial statements.
The first two statements in the Financial Section, the Statement of Net Assets and the Statement
of Activities, provide information about the activities of the City as a whole. These statements
include all assets and liabilities using the accrual basis of accounting, which is similar to the
accounting used by,most private sector companies. All current year's revenues and expenses are
taken into account regardless of when cash is received or paid. Capital assets, including
infrastructure and long-term liabilities, are included on a city wide Statement of Net Assets.
Overall, the City's net assets decreased from $257.7 million by $6.6 million to $251.1 million.
Major items contributing to this. decrease in net assets included a $1.1 million deficit in the
General Fund, expenditures exceeding revenues in the City Capital Projects fund by $1.1 million
and a reduction of capital assets of $2.4 million due to depreciation of those assets.
The Balance Sheet and Statement of Revenues, Expenditures and Changes in Fund Balance for
the Governmental Funds (including the General Fund) are found on pages 18 and 22, and present
information in a manner more consistent with how the City prepares its budget. For the General
Fund, expenditures exceeded revenues by $1.1 million. This deficit is down from the adopted
budget gap of $5.4 million and is the result of increases in some of the City's major revenue
sources, one-time revenues received during the fiscal year, and expenditure reductions due to a
number of vacant positions. The unreserved fund balance of the General Fund was $23,513,760,
while the total fund balance was $47,715,356. Following the basic financial statements is the
Notes section beginning on page 30. The Notes provide a description of the accounting policies
used by the City and further information regarding the basic financial statements.
The Supplementary Schedules Section of the report includes individual fund statements for the
special revenue, debt service, capital projects, proprietary and agency funds. The Statistical
Section contains financial and demographic data pertaining to the City. This report also
incorporates the activities of the City, the West Covina Redevelopment Agency and the West
Covina Public Financing Authority. A copy of the Comprehensive Annual Report is included in
the agenda pack.
FISCAL IMPACT: None.
P epared by: Tom Bachman
Finance Director
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City of West Covina, California
Comprehensive Annual
Financial Report
Fiscal Year Ended June 30, 2005
PREPARED BY:
City of West Covina Finance Department
Thomas Bachman
Director of Finance
CITY OF WEST COVINA
Comprehensive Annual Financial Report
Year ended June 30, 2005
TABLE OF CONTENTS
Page
1 INTRODUCTORY SECTION:
Letter of Transmittal-------------------------------------------------------------------------------- V
CityOfficials-----------------=----------------------------------------------------------------------- X
Organizational Chart --------------------------------------------------------------------------------XI
Certificate of Achievement for Excellence in Financial Reporting-------------------------XII.
FINANCIAL SECTION:
' Independent Auditors' Report ------ ---------------------------------------------------------------- 1
' Management's Discussion and Analysis (Required Supplementary Information)---------- 3
Basic Financial Statements:
Government -wide Financial Statements:
Statement of Net Assets ------------------------------------------------ =---------------------- 15
Statement of Activities------------------------------------------------------------------------16
iFund Financial Statements:
Governmental Funds:
BalanceSheet ------------------------ ----------------------------------------------------------- 18
I Reconciliation of the Balance Sheet of Governmental Funds to
the Statement of Net Assets---------------------------------------------------------------- 20
Statement of Revenues, Expenditures and Changes in
FundBalances -------------------------- -------------------=------------ ----------------------- 22
Reconciliation of the Revenues, Expenditures and Changes
in Fund Balances of Governmental Funds to the Statement of Activities------------24
Proprietary Funds:
Statement of Net Assets------------=-------------------------------------------------------25
Statement of Revenues, Expenses and Changes in
' Fund Net Assets------------------------------------------------------------- --------------- 26
Statement of Cash Flows ------------------------------------------------------- ------------ 27
I
CITY OF WEST COVINA
Comprehensive Annual Financial Report
Year ended June 30, 2005
TABLE OF CONTENTS (CONTINUED)
Page
Fiduciary Funds:
Statement of Fiduciary Assets and Liabilities ------------------------------------------- 29
,
Notes to the Basic Financial Statements------------------------------------------------------30
SUPPLEMENTARY INFORMATION:
Required Supplementary Information:
Notes to the Required Supplementary Information----------------------------------------72
'
Schedule of Revenues, Expenditures and Changes in Fund Balances —
Budget and Actual:
GeneralFund --------------------------------------------------------------------------------- 73
'
Supplementary Schedules:
Governmental Funds:
'
Non -Major
Combining Balance Sheet-----------------=-------------------------------------------------76
'
CombiningStatement of Revenues, Expenditures and Changes
p
inFund Balances -----------------------------------------------------------------------------77
Non -Major Special Revenue Funds:
Combining Balance Sheet ------------------------------------------------------------------- 80
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances ------------------------------------------------------------- 84
'
Schedule of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual:
'
RecreationFund---------------------------------------------------------------------------88
Drug Enforcement Rebate Fund -------------------- ------------------------------------ 89
Business Improvement Tax Fund -------------------------------------------------------90
Air Quality Improvement Fund-----------------------------------=--------------------- 91
'
PropositionA Fund--------------------------------------------------------------------=--92
PropositionC Fund-------------------------------------------------------------=---------93
Traffic Safety Fund-------------------=---------------------------------------------------94
'
GasTax Fund ---------------- ------------- =---------------------- -------------------------- 95
Traffic Congestion Fund-----------------------------------------------------------------96
Police Special Programs Fund ----------------------------------------------------------- 97
'
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CITY OF WEST COVINA
Comprehensive Annual Financial Report
Year ended June 30, 2005
TABLE OF CONTENTS, (CONTINUED)
Page
Transportation Development Act Fund------------------------------------------------98
Waste Management Fund----------------------------------------------------------------99
GrantsFund ---------------------------------- --------------------------------------------
100
TreeFund ------------------------------------------- --------------------------------------
101
Inmate Welfare Fund-------------------------------------------------------------------102
BKKCommunity Fund -----------------------------------------------------------------
103
Charter Cable Fund ----------------------------------- ----------------------------------
104
PublicSafety Fund-----------------------------------------------=----------------------105
Community Development Block Grant ----------------------------------------------
106
COPSGrant Fund-----------------------------------------------------------------------107
Arts in Public Places ---------- .----------------------------------------------------------
108
Special Assessments Fund-------------------------------------------------------------109
Major Debt Service Funds:
Schedule of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual:
City Debt Service Fund ----------------------------------------------------------------- 112
Community Development Commission Debt Service Fund----------------------113
Major and Non -Major Capital Projects Funds:
Combining Balance Sheet----------------------------------------------------------------- 116
Combining Statement of Revenues, Expenditures .
and Changes in Fund Balances ---------------------------------------------------- --------117
'
Schedule of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual:
Community Development Commission Capital Projects Fund------------------- 118
Capital Outlay Fund--------------------------------------------------=-----------------119
Construction Tax Fund----------------------------------------------------------------- 120
Park Development Fund---------------------------------------------------------------- 121
'
Enterprise Funds:
Combining Statement of Net Assets -------------------- --------------------------------- 124
Combining Statement of Revenues, Expenses and Changes in Net Assets -------- 125
Combining Statement of Cash Flows---------------------------------------------------- 126
III
.CITY OF WEST COVINA
Comprehensive Annual Financial Report
Year ended June 30, 2005
TABLE OF CONTENTS, (CONTINUED)
Page
Internal Service Funds:
Combining Statement of Net Assets-----------------------------------------------------128
Combining Statement of Revenues, Expenses and Changes in Net Assets -------- 129
Combining Statement of Cash Flows----------------------------------------------------130
Agency Fund:
Statement of Changes in Assets and Liabilities ---------------------------- ------------ 134
STATISTICAL SECTION: Table
General Governmental Expenditures by Function --- -=----------------------- 1------------- 135
General Governmental Revenues by Source ---------------------------------- 2------------- 137
Other Tax Revenues by Source ----------- =-------------------------------------- 3----- ------ -=138
Property Tax Levies and Collections ------------------------------------------- 4------------- 139
Assessed Valuations of Taxable Property-------------------------------------- 5-------------140
Property Tax Rates — Direct and Overlapping Governments---------------- 6------------- 141
Special Benefit Assessment Levies and Collections ------------------------- 7------------- 142
Computation of Legal Debt Margin--------------------------------------------- 8--------- ---- 143
Schedule of Direct and Overlapping Bonded Debt --------------------------- 9------------- 144
Demographic Statistics----------------------------------------------------------- 10------------ 145
Property Value, Construction and Bank Deposits ---------=------------------ 11 ------------ 146
Schedule of Insurance in Force-------------------------------------------------- 12------------147
Principal Taxpayers--------------------------------------------------------------- 13------------148
Miscellaneous Statistics ---------------------- ----=--------------------------- ---- 14------------ 149
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rinance liepartment
November 1, 2005
To the Members of the City Council, the City Manager, and the Citizens of the City of West
Covina:
It is the policy of the City of West Covina to annually publish a complete set of financial
statements presented in conformity with generally accepted accounting principles (GAAP) and
audited in accordance with generally accepted auditing standards by a firm of certified public
accountants. Pursuant to that policy, we hereby issue the comprehensive annual financial
statements of the City of West Covina ("the City") for the fiscal year ended June 30, 2005.
This report consists of management's representations concerning the finances of the City.
Management assumes full responsibility for the completeness and reliability of all the
information presented in this report. To provide a reasonable basis for making these
representations, management of the City has established a comprehensive internal control
framework that is designed both to protect the City's assets from loss, theft, or misuse and to
compile sufficient reliable information for the preparation of the City's financial statements in
conformity with GAAP. Because the cost of internal controls should not outweigh their benefits,
the City's comprehensive framework of internal controls has been designed to provide
reasonable rather than absolute assurance that the financial statements will be free from material
misstatement. As management, we assert that, to the best of our knowledge and belief, this
financial report is complete and reliable in all material respects.
The City's financial statements have been audited by Conrad and Associates, L.L.P., a firm of
certified public accountants. The goal of the independent audit was to provide reasonable
assurance that the financial statements of the City for the fiscal year ended June 30, 2005, are
free of material misstatement. The independent audit involved examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements; assessing the
accounting principles used and significant estimates made by management; and evaluating the
overall financial statement presentation. The independent auditor concluded, based upon the
audit, that there was a reasonable basis for rendering an unqualified opinion that the City's
financial statements for the fiscal year ended June 30, 2005, are fairly presented in conformity
with GAAP. The independent auditor's report is presented as the first component of the financial
section of this report.
The independent audit of the financial statements of the City was part of a broader, federally
mandated "Single Audit" designed to meet the special needs of federal grantor agencies. The
standards governing Single Audit engagements require the independent auditor to report not only
on the fair presentation of the financial statements, but also on the audited City's internal
controls and legal requirements involving the administration of federal awards. These reports are
available in the City's separately issued Single Audit Report.
GAAP requires that management provide a narrative introduction, overview, and analysis to
accompany the basic financial statements in the form of Management's Discussion and Analysis
(MD&A). This letter of transmittal is designed to complement MD&A and should be read in
1444 W Garvey Avenue • West Covina CA 91790 • Phone (626) 939-8438 • Fax (626) 939-8664
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conjunction with it. The City's MD&A can be found immediately following the report of the
independent auditors.
Profile of the Government
The City of West Covina is located in the San Gabriel Valley, 20 miles east of downtown Los
Angeles and 15 miles north of Orange County. Incorporated in 1923, the City covers 17 square
miles and has a population of approximately 110,000. The City's location and access to major
freeways makes West Covina close to many visitor attractions and an ideal business and
commercial center. The City has over 32,000 housing units and offers the amenities of a big city
location with a high standard of living for its community.
West Covina is a general law city and operates under the council-manager form of government.
Policy -making and legislative authority are vested in the City Council, consisting of five council
members elected to overlapping four-year terms. The City Council selects a Mayor from one of
its members each March to serve a one-year term. The City Council is responsible for, among
other things, passing ordinances, adopting the budget, appointing committees, and hiring both the
City Manager and City Attorney. The City Manager is responsible for carrying out the policies
and ordinances of the City Council, for overseeing the day-to-day operations of the City, and for
appointing the heads of the various departments.
The City provides a full range of services to its citizens, including police, fire and emergency
medical; construction and maintenance of streets, traffic signalization and other infrastructure;
planning and building safety; and social, recreational and cultural activities and events. The City
offers fifteen parks, four community centers and a county operated library. The City is
financially accountable for a redevelopment agency and financing authority, both of which
financial statements are combined within the City's financial statements. Additional information
regarding all three of these legally separate entities can be found in the notes to the financial
statements.
The City Council reviews and adopts an annual budget to provide for effective management and
budgetary control of City assets and to assist in achieving the objectives set by the City Council.
All. departments of the City are required to submit requests for appropriation to the City's
manager during March of each year. The City's manager uses these requests as the starting point
for developing a proposed budget. The City's manager then presents this proposed budget to the
council for review prior to May 31. The council holds public hearings on the proposed budget
and adopts a final budget in June of each year. The appropriated budget is prepared by fund,
function (e.g., public safety), and department (e.g., police). The City Manager is authorized to
transfer budgeted amounts between departments to assure adequate and proper standards of
service. Budgetary revisions, including supplemental appropriations which increase
appropriations in individual funds, must be approved by the City Council.
Budget -to -actual comparisons are provided in this report for each individual governmental fund
for which an appropriated annual budget has been adopted. For the general fund, this comparison
is presented as part of the required supplementary information in the accompanying financial
statements. For governmental funds that have appropriated annual budgets, other than the general
fund, this comparison is presented in the supplementary section of the. accompanying financial
statements.
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Local economy
The City of West Covina is a largely residential city that has a large commercial section along
the Interstate 10 corridor. That commercial section includes two regional shopping centers and a
number of auto dealerships. Because of this makeup, as well as changes at the state level that
replaced the majority of vehicle license fees with a like amount of property taxes, the City relies
heavily on sales tax and property tax revenues as its two major sources of revenues. 92% of City
General Fund property taxes are generated by residential properties and over 65% of sales tax
revenues are generated from the auto dealerships. Total sales tax revenues grew by 3.8%
during the fiscal year and property taxes increased by 9.8% during the year. Sales tax and
property tax revenues will continue to be a main focus on future economic development efforts.
Over the last 'five years police and fire department expenditures have increased by 52.7% and
63.3%, respectively, while total General Fund expenditures have increased by only 27.9% during
that same period. This means that other services funded by the General Fund have been reduced
during this period. The 'large increase in public safety expenditures reflects increases in salaries
and benefits that have exceeded those in other areas of public sector employment. Of particular
note is the increase in pension contribution costs, which has more than tripled during this five-
year period.
In order to keep up with this growth in expenditures, fees for services and taxes, where possible,
have been increased. The City tries to ensure that it recovers the cost of services that primarily
serve a specific individual or group of recipients. The City also implemented a City -operated
ambulance service during the fiscal year in order to generate revenues to partially offset the cost
of providing emergency medical services. The ambulance service should generate $1 million
annually of net revenues to the City:
Long-term financial planning
Although the 2004-05 fiscal year budget, which contained a $5.4 million gap, was the sixth
consecutive year in which the City had adopted a General Fund budget that has contained a gap,
the fiscal year ended with only a $1.1 million deficit. Reducing the 2004-05 gap was due to a
number of large one-time revenues that were received during the year, larger than expected
increases in certain revenues, and expenditure savings due to a number of vacant positions.
' Significant process has also been made in closing the structural imbalance that has persisted for a
number of years and the 2005-06 adopted General Fund budget contained a gap of only $56,908.
In addition to strong growth in revenue sources such as property taxes and interest income, new
revenue sources such as the City -operated ambulance service which generates approximately $1
million of net income per year and a sales tax reimbursement agreement with the Community
Development Commission which reimburses the City for previously foregone sales tax revenues
in excess of $1 million per year have contributed to closing the budget gap. The City has also
managed to control expenditures at a responsible level of growth, which has also contributed to
the closing of the gap.
Finally, the City still maintains a General Fund unreserved fund balance that is equal to 48% of
1 its 2005-06 expenditure budget.. All of these above mentioned factors have placed the City in a
good position to continue to provide a high level of service to the community.
. VII
Relevant financial policies
For, fiscal year 2004-2005 the City's revenue structure for the three major revenue sources
changed dramatically due to actions taken .at the state level. The first change is the so-called
"triple flip" which. was adopted as part of the state fiscal recovery bonds approved by California
voters in March. 2004. Under the triple flip, one quarter of the City's sales tax revenue will be
swapped for a like amount of property tax. This swap will remain in place as long as the fiscal
recovery bonds are outstanding. Increases in this new revenue source will be tied to increases in
the City's remaining portion of sales tax. .
The second major change in the revenue structure involved the elimination of the backfill portion
.of the vehicle license fee (VLF) revenues. This amounted to an approximate 87% reduction of
VLF revenues. As with the sales tax swap, the loss of VLF revenues was replaced with a like
amount of property tax revenues. This is a permanent shift. The property tax in lieu of VLF
received during 2004-05 was tied to actual VLF collections. Increases in future years for this
revenue source will be tied to increases in assessed valuation in the City. Total VLF revenues,
including the in lieu amount, increased by 39.4% during the year. This large increase was due in
part to the state withholding.the backfill portion for three months during the previous year. The
state repaid this amount withheld to the City in July 2005.
The final major change to City revenues is a shift of City property tax to the ERAF (Educational
Revenue Augmentation Fund) fund. $1.1 million was shifted from the City during the 2004-05
fiscal year and an additional $1.1 million will be shifted during the 2005-06 fiscal year. These
shifts will be discontinued after that.
These changes do affect the timing of receipt of revenues and they place a higher reliance on
property taxes and a lower reliance on vehicle license fees. This, shift in reliance will benefit the
City in the near term as property taxes are expected to continue their rapid growth in the next
couple of years.,
Proposition 1A, which was approved by 80% of California voters in November 2004 should
provide the City with protection for local government revenues and help provide a level of
stability for revenues which hasn't existed in the past.
Major Initiatives
The Community Development Commission continues to serve a vital role of stimulating local
businesses, generating employment opportunities and' enhancing the City's economic stability.
The major project continues to be efforts to redevelop the former BKK landfill site located in the
southern portion of the City. As envisioned, this redevelopment will include a commercial
center anchored by two major retailers, a golf course, and potentially other recreational uses.
The City has already purchased the land and issued bonds in 2004-05 for the first phase of the
project which includes the mass grading of the entire site and other infrastructure improvements.
The commercial center is projected to open in the 2006-07 fiscal year.
Additional projects include a number of new restaurants that opened in the City during the past
12 months. Additionally, a number of large-scale development projects are in process or in the
planning stages including the expansion construction of -two auto dealerships, a commercial
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development on the undeveloped portion of the civic center site and a new auto dealership that
will replace an underused commercial center.
Awards and Acknowledgements
The Government Finance Officers' Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of West
Covina for its comprehensive annual financial report for the fiscal year ended June 30, 2004. In
order to be awarded a Certificate of Achievement, a government must publish an easily readable
and efficiently organized comprehensive annual financial report that satisfied both generally
accepted accounting principles and applicable legal requirements. We believe the current
comprehensive annual financial report continues to meet GFOA standards.
The City has received GFOA's Distinguished Budget Presentation Award for its annual budget
document for fiscal year 2004-05. In order to qualify for the Distinguished Budget Presentation
Award, the City's budget document was judged to be proficient in several categories, including
as a policy document, a financial plan, an operations guide, and a communications device.
The preparation of this report could not have been accomplished without the efficient and
dedicated services of the entire staff of the finance department. We would like to express our
appreciation to all members of the department who assisted and contributed to the preparation of
this report. Credit also must be given to City Council for their interest and support in planning
and conducting the financial operations of the City in axesponsible and progressive manner.
Respectfully submitted,
Tom Bachman
Director of Finance
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CITY OF WEST COVINA
City Officials
June 30, 2005
CITY COUNCIL
Shelley Sanderson, Mayor
Benjamin S. Wong, Mayor Pro Tern
Steve Herfert
Roger Hernandez
'
Michael "Mike" Miller
CITY MANAGER
Andrew G. Pasmant
EXECUTIVE MANAGEMENT
Artie Fields
Assistant City Manager
Arnold M. Alvarez-Glasman City Attorney
,
Sue Rush
City Clerk
Clay Durbin
Communications Director
Chris Chung
Community Development Commission Director
Steve Samaniego
Interim Community Services Director
,
Steve Samaniego
Environmental Management Director
Thomas Bachman
Finance Director
,
Richard Elliott
Fire Chief
Artie Fields
Interim Human Resources Director
Planning Director
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Doug McIsaac
Frank Wills
Police Chief
Shannon Yauchzee
Public Works Director
,
Erin Patricia Hoppe
Risk Management Director
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City of West Covina
Organizational Chart
Citizens of
West Covina
City Clerk City Council City Treasurer
(F]ecte� (Elected) (Elected)
Community Services Hunan Resources
Commission Commission
Planning Senior Citizens'
Commission Cornrnission
Waste Mgmt & Environmental City Attorney
Quality Commission
City Manager
City
Clerk
Communications Cornmmnity
Development Coma -fission
F Finance Fire
Police Pubfic
Works
Corrmnuuty
Services
Environmental
Management
Human
Resources
Planning
Risk
Manaizemen
XI
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of West Covina,
California
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 2004
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
CI= r President
y�coup.
Executive Director
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CONRADA.IND
ASSOCIATES, L.L.P.
Honorable Mayor and City Council
City of West Covina
West Covina, California
Independent Auditors' Report
CERTIFIED PUBLIC ACCOUNTANTS
2301 DUPONT DRIVE, SUITE 200
IRVINE, CALIFORNIA 92612
(949) 474-2020
Fax (949) 263-5520
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 West Covina, California, as of and for the year ended June 30, 2005, which collectively
comprise the City's basic financial statements, as listed in the table of contents. These financial
statements are the responsibility of the management of the City of West Covina. Our
responsibility is to express an opinion on these.financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and 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 West Covina,
California, as of June 30, 2005, and the respective changes in financial position and cash flows,
where applicable, of the City of West Covina, California for the year then ended in conformity
with accounting principles generally accepted in the United States of America.
The information identified in the accompanying table of contents as management's discussion
and analysis and required supplementary information are not a required part of the basic
financial statements, but are supplementary information required by the Governmental
Accounting Standards Board. We have applied certain limited procedures, which consisted
principally of inquiries of management regarding the methods of measurement and presentation
of the required supplementary information. However, we did not audit the information and
express no opinion on it.
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MEMBERS OF AICPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION
I
Honorable Mayor and City Council
City of West Covina
West Covina, California
Our audit was conducted for the purpose of forming an opinion on the financial statements that
collectively comprise the City of West Covina's basic financial statements. The introductory
section, combining and individual fund financial statements and statistical tables are presented
for purposes of additional analysis and are not a required part of the basic financial statements.
The combining and individual fund financial statements have been subjected .to the auditing
procedures applied in the audit of the basic financial statements and, in our opinion, are fairly
stated in all material respects in relation to the basic financial statements taken as a whole. The 1
introductory section and statistical tables have not been subjected to the auditing procedures
applied in the audit of the basic financial statements and, accordingly, we express no opinion on
them. 1
In accordance with Government Auditing Standards, we have also issued a report dated
November 1, 2005 on our consideration of the City's internal control over financial reporting and '
our tests of its compliance with certain provisions of 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.
November 1, 2005
2
1 MANAGEMENT'S DISCUSSION AND ANALYSIS
1 The, following discussion and analysis of the financial performance of the City of West Covina
provides an overview of the City's financial activities for the fiscal year ended June 30, 2005.
The information presented herein should be considered in conjunction with the transmittal letter
and financial statements identified in the accompanying table of contents.
1 FINANCIAL HIGHLIGHTS
• As of June 30, 2005, the City's total net assets (excess of assets over liabilities) were
$251.1 million. Of this amount, $2.0 million is available to meet ongoing operations.
• The City's total net assets decreased $6.6 million. The majority of the decreases occurred
in the General Fund and the BKK Community Special Revenue Fund and as a result of
the depreciation expense of City assets.
• As of June 30, 2005, The City's governmental funds reported combined ending fund
balances of $98.6 million, an - increase of $15.6 million from the prior year.
Approximately $23.5 million of this total amount is available for spending at the City's
' discretion.
• As of June 30, 2005, unreserved fund balance for the General Fund was $23.5 million, or
52% of total General Fund expenditures.
+ The City's total debt decreased by $11,585,000 during the current fiscal year. The City
' issued $13.5 million in additional debt during the fiscal year.
' OVERVIEW OF THE FINANCIAL STATEMENTS
The annual report consists of four parts — management's discussion and analysis (this section),
the basic financial statements, required supplementary information, and an optional section that
presents combining statements for nonmajor governmental funds and internal service funds. The
basic financial statements include two kinds of statements that present different views of the
City:
• The first two statements are government -wide financial statements that provide both long-
term f P g
term and short-term information about the City's overall financial status.
• The remaining statements are fund financial statements that focus on individual parts of the
City government, reporting the City's operations in more detail than the government -wide
statements.
' • The governmental funds statements tell how general government services like public
safety were financed in the short term as well as what remains for future spending.
• Proprietary funds statements offer short- and long-term financial information about
the activities the government operates like businesses, such as the West Covina
Service Group, the City's computer enterprise.
• Fiduciary fund statements provide information about the fiduciary relationships — like
the agency funds of the City — in which the City acts solely as agent or trustee for the
benefit of others, to whom the resources in question belong.
' The financial statements also include notes that explain some of the information in the financial
statements and provide more detailed data. The statements are followed by a section of required
supplementary information that provides additional financial and budgetary information.
Reporting the City as a Whole
The accompanying government -wide financial statements include two statements that present
financial data for the City as . a whole. 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 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.
These two statements report the City's net assets and changes in them. The City's net assets —
the difference between assets and liabilities — is one way to measure the City's financial health,
or financial position. Over time, increases and decreases in the City's net assets are one -indicator
of whether its financial health is improving or deteriorating. You will need to consider other
nonfinancial factors, however, such as changes in the City's property tax .or sales tax base and
the condition of the City's roads, to assess the overall health of the City.
The Statement of Net Assets and the Statement of Activities are divided into two kinds of
activities:
• Governmental activities — Most of the City's basic services such as public safety, streets and
roads, economic development and parks and recreation, are reported here. Sales taxes,
property taxes, state subventions, and other revenues finance most of these activities.
• Business -type activities — The City charges a fee to customers to help it cover all or most of
the cost of the services accounted for in these funds. These activities include the City's
computer enterprise operation.
The government -wide financial statements include the City of West Covina Community
Development Commission and the West Covina Public Financing Authority (component units),
along with the City of West Covina (the primary government). Although legally separate, these
component units are important because the City is financially accountable. for them.
Reporting the City's Most Significant Funds
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 or by
bond covenants. However, City Council establishes many other funds to help. it control and
manage money for particular purposes or to show that - it is meeting administrative
responsibilities for using certain taxes, grants, or other money (like grants received). The City's
two kinds of funds — governmental and proprietary — use different accounting approaches.
• Governmental funds Most of the City's basic services are reported in governmental funds,
which focus on how money flows into and out of those funds and the balances left at year
end that are available for spending. These funds are reported using the modified accrual
accounting .method, which measures cash and all other current financial assets that can
readily be converted to cash. The governmental fund statements provide a detailed short-term
view of the City's general government operations and the basic services it provides.
Governmental fund information helps you determine whether there are more or fewer
financial resources .that can be spent in the near future.to finance the City's programs. We
describe the relationship or differences ,between governmental activities (reported in the
Statement of Net Assets and the Statement of Activities) and governmental funds in
reconciliations on the pages following the fund financial statements in this report.
• Proprietary funds — When the City charges customers for the services it provides these
services are generally reported in proprietary funds. Proprietary funds are reported in the
isame way that all activities are reported in the Statement of Net Assets and the Statement of
Activities. In fact, the.City's enterprise funds are the same as the business -type activities we
report in the government -wide statements but provide more detail and additional information,
I such as cash flows, for proprietary funds. We use internal service funds (the other component
of proprietary funds) to report activities that provide supplies and services for the City's other
programs and activities.
Reporting the City's Fiduciary Responsibilities
The City'is an agent for certain assets held for, and under the control of, other organizations and
individuals. All of the City's fiduciary activities are reported in a separate Agency Fund
Combining Statement of Changes in Assets and Liabilities. We exclude these activities from the
City's other financial statements because the City cannot use these assets to finance its
' operations. The City is responsible for ensuring that the assets reported in these funds are used
for their intended purposes.
1 GOVERNMENT -WIDE FINANCIAL STATEMENTS
As noted earlier, net assets may serve over time as a useful indicator of a government's financial
position. At June 30, 2005, net assets for the City of West Covina were $251,058,347.
' A summaryof the government -wide statement of net assets at June 30 2005 follows:
g ,
Table 1.
Net Assets
Business -type
Governmental Activities
Activities
Total
2005
2004
2005
2004
2005
2004
Current and other assets
$ 195,078,867
183,030,511
2,060,525
1,972,400
197,139,392
185,002,911
Capital assets
21.6,330,441
219,009,835
136,937
458,875
216,467,378
219,468.710
Total Assets
411,409,308
402,040,346
2,197,462
2,431,275
413,606,770
404,471,621
Long-term debt outstanding
147,366,572
133,935,955
118,791
81,564
147,485,363
134,017,519
Other liabilities
Total
14,953,944
162,320,516
12,564,228
109,116
198,479
15,063,060
12,762,707
146,500,183
Liabilities
227,907
280,043
162,548,423
146,780,226
Net Assets:
Invested in capital assets,
net of debt
143,792,663
146,195,649
136,937
458,875
143,929,600
146,654,524
Restricted
105,156,007
1.06,938,430
-
-
105,156,007
106,938,430
Unrestricted
140,122
2,406,084
1,832,618
1,692,357
1,972,740
4,098,441
Total net assets
$ 249,088.792
255.540.163 1,969,555
2.151.232
251,058.347
257.691.395
$143,929,663 (57.3%) of the net assets reflects the City's investment in capital assets; less any
related debt used to acquire those assets that is still outstanding. Since these assets are used to
provide services to the citizens they are not available for future spending. An additional
1 $105,156,007 (41.9%) of net assets represents resources that are subject to external restrictions
on how they may be used. The remaining $1,972,740 (0.8%) of net assets is unrestricted and i
may be used to meet the City's ongoing service and credit obligations. The relatively small
proportionate amount of unrestricted net assets is due to outstanding debt of the redevelopment
agency that was not used for capital assets and is therefore an offset against unrestricted net '
assets.
A summary of the government -wide statement of activities for the year ended June 30, 2005 ,
follows:
Table 2
Changes in Net Assets
Business -type
.Governmental Activities Activities Total
2005 2004 2005 2004 2005 2004
Revenues
Program revenues:
Charges for services
Operating contributions and grants
Capital contributions and grants
General revenues:
Property taxes
Sales taxes
Other taxes
Other general revenues
Total revenues
$ 9,320,772 7,841,205' 1,992,662 2,245,902 11,313,434 10,087,107
10,802,517
9,833,967
- - 10,802,517
9,833,967
378,493
1,064,756
- - 378,493
11064,756
17,565,368
16,107,447
- - 17,565,368
16,107,447
14,522,220
14,355,566
- - 14,522,220
14,355,566
5,829,540
6,645,598
- - 5,829,540
6,645,598
12,036,704
7.266.755
38,463 (228,732) 12,075,167
7,038,023
70,455,614 63,115,294 2,031,125 2,017,170 72,486,739 65,132,464
Expenses
General government
29919,887
2,314,558
- -
2,919,887
2,314,558,
Public safety
38,436,098
33,172,116
- -
38,436,098
33,172,116
Public works
19,642,927
19,184,962
- -
19,642,927
19,184,962
Community services
4,144,990
5,529,408
- -
4,144,990
5,529,408
Community development
6,761,102
6,438,979
- -
6,761,102
6,438,979.
Interest expense
5,001,981
4,039,240
- -
5,001,981
4,039,240 .
Simulator
-
-
- 241,047
-
241,047
Computer service
-
-
2,212,802 2,023,376
2,212,802
2,023,376
Total expenses
76,906,985
70,679,263
2,212,802 2,264,423
79,119,787
72,943,686
Increase (decrease) in net assets
(6,451,371)
(7,563,969) (181,677) (247,253)
(6,633,048)
(7,811,222)
Beginning net assets
255,540,163
263,104,132
2,151,232 2,398,485
257,691,395
265,502,617
Ending net assets
249,088,792
255.540 163
1.969.555 2.151.232
251:058,347
257.691.395
The increase or decrease in net assets can provide an indication as to whether the overall
financial position of the City improved or deteriorated during the year. Total net assets for the
City decreased by $6,633,048 during the fiscal year.. Governmental activities net assets
6
decreased by $6,451,371 (2.5%) during the fiscal year while business -type activities net assets
decreased by $181,677 (8.4%). The net assets (financial position) of the City changed as a result
' of the revenue and expense fluctuations described below for the governmental and business -type
activities of the City.
Governmental Activities
' Some of the more significant changes in the revenues and expenses of the City's governmental
activities presented above are as follows:
• Property tax revenues, the City's largest revenue source, continued its strong growth. This
revenue source grew by 9.1 % and also exceeded its final budget estimate.
• Vehicle in lieu revenue increased by 39.4% due to strong growth of this revenue and the state
returning full funding of this revenue source to cities.
• Interest income, included in other revenues in the chart above, increased substantially due to
a large negative fair market value adjustment that occurred in the prior year.
' • Public safety costs, which make up 49% of all governmental activities expenditures,
increased by 15.9% due mainly to increase pension costs.
Revenues by Source — Governmental Activities
Capital grants and
contributions
1%
Openti^ t. a d
c
Charges for services
13%
Other revenu
3%
Investment inc
4%
Mot(
I U%
Other taxes
8%
:axes
axes
Expenses by Function — Governmental Activities
Interest expense General government
n of
Community deve
9%
Community servic
5%
Public we
26%
Public safety
49%
Business -Type Activities
The business -type activities now include only the Computer Services Group, which provides
dispatch and records management software and services to other police departments. The
business -type activities revenues (see Table 2) decreased by $253,240 (11.3%) from $2,245,902
in 2003/04 to $1,992,662 in 2004/05. Expenses decreased by $51,621 (2.3%) from $2,264,423
in 2003/04 to $2;212,802 in 2004/05.
The reasons for significant changes in the revenues and expenses of the City's business -type
activities from the prior year are as follows:
• The City simulator training facility, which generated revenues of $79,903 and expenses of
$241,047 in the prior year, is no longer treated as a business -type activity and those activities
are now included in the General Fund public safety operations.
• The City computer service enterprise operating revenues decreased from $2,165,999 in
2003/04 to $1,992,662 in 2004/05. Investment income increased from $21,268 in 2003/04 to
$38,600 in 2004/05. Expenses increased by $189,426 (9.4%) from $2,023,376 in 2003/04 to
$2,212,802 in 2004/05.
8
r�
J
IExpenses and Program Revenues — Business -type Activities
1
2,500,000
2,000,000
1,500,000
1,000,000
500,000
Computer service
MAJOR FUNDS
As noted earlier, the City uses fund accounting to provide proper financial management of the
City's. resources and to demonstrate compliance with finance -related legal requirements.
Major Governmental Funds. The General Fund is the chief operating fund of the City. At the
end of the current fiscal year, unreserved fund balance of the General Fund was $23,513,760,
while total fund balance was $47,715,356. As a measure of the General Fund's liquidity, it may
be useful to compare both unreserved fund balance and total fund balance to total fund
expenditures. Unreserved fund balance represents 52% of total general fund expenditures, while
total fund balance represents 1060/o of that same amount.
The reasons for significant changes in the revenues and expenditures of the City's General Fund
from the prior year are as follows:
Total taxes were up $452,224 (1.8%) from the prior year. Sales tax revenues, including the
triple flip amount, increased by $479,990 (3.8%). Property taxes decreased by $435,902
(6.6%) due to the ERAF III shift of $1,081,388 in property taxes away from the City.
Franchise taxes increased $252,749 (9.7%) due in part to a recapture of prior year amounts as
the result of an audit of the City's cable television franchise.
Licenses and permits decreased by $374,325 (26.4%) due to decreases in building permits
and animal licenses.
Investment income increased by $1,306,865 (33.3%) due to the repayment of an additional
$981,947 . in interest from. the CDC to the City, and generally higher interest rates in the
market.
. • Revenues from other agencies increased by $2,205,173 (42.00/0) due to a $1,994,419 (39.4%)
increase in the motor vehicle in lieu tax that was a result of the state restoring full funding
this revenue source during the fiscal year. The City also received a one-time reimbursement
of $285,809 from the county for multi -year maintenance costs of City -parks under a park
grant program.
• Charges for services increased by $1,162,439 (140.8%) due to the implementation of the City
operated ambulance service which generated $727,387 in fees, increases in other City fees,
and increases in reimbursement for other City services.
• Public safety costs increased by $3,969,587 (12.1%0) due in large part to higher pension
contribution costs.
• Community Services costs decreased by $2,432,126 (70.8%) due to the construction of the
Cameron Park Community Center which occurred in the prior year.
The Debt Service Fund finished the fiscal year with a total fund balance of $19,802,427, up
from $18,330,318 in the prior year. The majority of that amount is designated for payment of
debt service on the City's lease revenue bonds. The increase in fund balance was due to an
$843,994 positive fair market value adjustment to two large investments that are held within that
fund and historically low interest rate costs on the City's variable rate debt. Aside from the fair
market value adjustment, investments generated $1.03 million in interest revenue.
The Community Development Commission Debt Service Fund has a deficit fund balance of
$13,296,682, down from a deficit of $16,178,316 in the prior year. This deficit is due to
$23,469,655 of advances from the General Fund. These advances will be repaid to the General
Fund from future property tax increment revenues. Property tax revenues increased by
$2,353,220 (19.7%) over the prior year while debt service expenditures increased by $873,968
(7.9%).
The Community Development Commission Capital Projects Fund finished the fiscal year
with a total fund balance of $21,085,133, up from $19,556,141, down from $21,955,308 in the
prior year. The majority of that amount is reserved for land held for resale, notes, and loans
payable, and low and moderate -income housing programs. Total revenues for the year increased -
by $982,938 (48.4%) from the prior year due mainly to an increase in repayments of low and
moderate -income housing loans. Expenditures decreased by $3,633,955 (40.3%) due mainly to a
land purchase in the prior year of approximately $3 million.
GENERAL FUND BUDGET
The major differences between the original budget and the final amended budget of the General
Fund are briefly summarized below. The majority of changes on the expenditure side are due to
budget carryovers from the prior year.
• The revenue budget increased by $1 million due to the decision by the City Council to
repay an additional $1 million in interest to the City on the amounts advanced to the CDC
•. $107,321 increase in the budget for general government activities
• $417,955 increase in the budget for the public safety departments to offset costs of new
MOU's
• $163,625 increase in the budget for the community services department
Taxes exceeded their budget by $1,484,013 due to sales tax exceeding its budget by $253,259,
property tax exceeding its budget by $603,354, franchise taxes exceeding its budget by $220,211
and contractors license and documentary transfer taxes exceeding their budgets by a combined
$295,041. Licenses and permits exceeded their budget by $109,100 due to building permits
fl
I
10
H
Ll
11
exceeding its budget and despite animal licenses falling short of its budget by $63,187. Revenue
from other agencies exceeded budget by $414,765 due in large part to vehicle license fee revenue
exceeding its budget by $294,997. On the expenditure side, public safety was under budget by
$703,875 due in large part to a number of position vacancies in the fire department. Public
works and community services were lower than budget by $247,493 and $173,178, respectively,
due mainly to unfinished capital projects that were carried over into the 2005-06 fiscal year.
CAPITAL ASSETS
Capital Assets
(net of depreciation)
Governmental Activities Business -type
Activities
Total
2005
2004 2005
2004
2005
2004
Land
$ 53,708,584
53,730,967 -
-
53,708,584
53,730,967
Buildings and system
8,095,722
8,204,709 -
-
8,095,722
8,204,709
Other improvements
18,052,675
16,615,781 -
-
18,052,675
16,615,781
Equipment and vehicles
6,656,944
6,943,575 136,937
458,875
6,793,881
7,402,450
Infrastructure
110,528,342
114,271,684 -
-
110,528,342
114,271,684
Rights of way
14,376,498
14,376,498 -
-
14,376,498
14,376,498
Construction in progress
4,911,676
4,866,621 -
-
4,911,676
4,866,621
Total
$ 216,330,441
219.009,835 136,937
458,875
216,467,378 219,468,710
The major additions to capital assets during the year ended June 30, 2005 were as follows:
• The Orangewood Park skate park and roller hockey facilities added $1,276,871 to capital
assets during the year. The total amount was included in construction in progress at June
30, 2004
• Street rehabilitation on various bus routes ($1,488,205)
• Bus shelter replacement and concrete bus pads ($508,942)
• Acquisition of various equipment, vehicles and improvements other than buildings
include:
o Fourteen police vehicles and two police motorcycles ($338,134)
o Police Department refurbishment and security fencing ($211,653)
o Street landscaping and paseo upgrades ($258,280)
o Various park improvements ($222,901)
LONGTERM DEBT
At the end of the current fiscal year, the City had debt outstanding of $153,057,335. Of this
amount, $119,730,000 represents outstanding bonds and $33,327,335 represents other debt such
as developer agreements payable, amounts due to other agencies, compensated absences payable,
notes payable and capital lease obligations. Of the outstanding bonds, $38,895,000 comprises
lease revenue bonds secured by leases from the General Fund, $37,485,000 of bonds secured by
tax increment revenues of the Redevelopment Agency including the housing set -aside funds, and
$43,350,000 of special assessment debt. The special assessment bonds are secured by a special
tax levied annually on the property within the community facilities district, in addition to a
11
pledge, by the City and Redevelopment Agency of property taxes and sales taxes. generated
within the district.
Outstanding Bonds
Governmental Activities
2005 2004
Lease revenue bonds $44,880,000 3 f,735,000
Special assessment bonds 43,350,000 44,255,000
Tax allocation bonds 31,500,000 32,155,000
Total $119.730,000 108.145.000
In August 2004, the City of West Covina Public Financing Authority issued $13.5 million of
variable rate lease revenue bonds to fund the grading and infrastructure relating to the City's
proposed municipal golf course at a former landfill site.
The City maintains an "A" rating from Standard & Poor's for its lease revenue bonds.
Additional information on, the City's long-term debt can be found in the notes to the
accompanying financial statements.
Additional information on the City of West Covina's long-term debt can be found in notes 9 - 18
on pages 52 — 63 of this report.
Contacting the Citv's Financial Management
This financial report is designed to provide our citizens, taxpayers, customers, investors and
creditors with a general overview of the City's finances and to show the City's accountability for
the money it receives. If you have questions 'about this report or need additional financial
information, contact the Finance Director's Office, at City of West Covina, 1444 West Garvey
Ave., West Covina, California 91793.
12
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13
BASIC FINANCIAL STATEMENTS
14
1
Assets:
Cash and investments (note 2)
Cash and investments with
with fiscal agent (note 2)
Receivables:
Accounts
Taxes
Interest
Assessments (note 6)
Notes and loans (note 5)
Due from other agencies
Inventory
Prepaids and other assets
Land held for resale (note 7)
Capital assets (note 8):
Land and rights of way
Construction in progress
Other capital assets, net
Total assets
CITY OF WEST COVINA
Statement of Net Assets
June 30, 2005
Governmental Business -Type Totals
Activities Activities 2005 2004
$ 77,482,219 2,021,785 79,504,004 76,258,777
20,357,189
-
20,357,189
8,204,146
569,182
-
569,182
306,663
.4,815,009
-
4,815,009
4,197,633
315,525
5,995
321,520
251,210
43,411,804
-
43,411,804
44,332,161
30,809,869
-
30,809,869
34,898,142
5,609,146
32,025
5,641,171
4,278,602
98,542
-
98,542
81,568
365,799
720
366,519
346,342
11,244,583
-
11,244,583
11,847,667
68,085,082
-
68,085,082
68,107,465
4,911,676
-
4,911,676
4,866,621
143, 333,683
136,937
143,470,620
146,494,624
411,409,308
2,197,462
413,606,770
404,471,621
Liabilities:
Accounts payable
3,106,960
30,069
3,137,029
2,117,681
Other accrued liabilities
3,571,399
54,339
3,625,738
2,379,434
Due to other governments
444,354
-
444,354
602,211
Interest payable
1,196,484
-
1,196,484
1,100,371
Deposits
948,939
-
948,939
570,449
Unearned revenue
138,544
138,544
950,154
Long-term liabilities (notes 9 to 18):
Due within one year
5,547,264
24,708
5,571,972
5,042,407
Due in more than one year
147,366,572
118,791
147,485,363
134,017,519
Total liabilities
162,320,516
227,907
162,548,423
146,780,226
Net assets:
Invested in capital assets,
,.
net of related debt
Restricted for:
143,792,663
136,937
143,929,600
146,654,524
Public safety
346,060
-
346,060
540,719
Public works
653,436
-
653,436
999,262
I
Community services
7,026,923
7,026,923
11,428,622
Community development
50,290,982
=
50,290,982
46,636,721
Debt service
46,838,606
-
46,838,606
47,433,106
'
Unrestricted
Total
140,122
$ 249,088,792
1,832,618
1,972,740
4,098,441
net assets
1,969,555
251,058,347
257,691,395
See accompanying notes to the basic financial statements.
15
CITY OF WEST COVINA
Statement of Activities
Year ended June 30, 2005
Program Revenues
Operating
Capital
Charges for
Contributions
Contributions
Expenses Services
and Grants
and Grants
Governmental. activities:
General government
$ 2,919,887 1,377,178
12,987
-
Public safety
38,436,098 2,562,910
1,304,592
-
Public works_
19,642,927 3,610,577
6,355,350.
-
Community services
4,144,990, 1,546,169
3,129,588
378,493
Community development
6,761,102 223,938
-
-
Interest expense
5,001,981 -
-
-
Total governmental activities
76,906,985 9,320,772
10,802,517
378,493
Business -type activities:
Simulator
- -
-
-
Computer service
2,212,802 1,992,662
-
-
.Total business -type activities
2,212,802 1,992,662
-
-
$ .79,119,787 11,313,434
10,802,517
378,493
General revenues:
Taxes:
Property taxes
Sales tax
Other taxes
Motor vehicle in lieu, unrestricted
Investment income
Other revenues
Transfers
Total general revenues and transfers
Change in net assets
Net assets at beginning of year
Net assets at end of year
See accompanying notes to the basic financial statements.
16
Net (Expense) Revenue and
Changes in Net Assets
Governmental Business -type
Activities Activities
Totals
2005 2004
(1,529,722)
- (1,529,722)
(939,717)
(34,568,596)
- (34,568,596)
(29,014,923)
(9,677,000)
- (9,677,000)
(7,662,713)
909,260
- 909,260
(3,405,114)
(6,537,164)
- (6,537,164)
(6,284,142)
(5,001,981)
- (5,001,981)
(4,039,240)
(56,405,203)
- (56,405,203)
(51,345,849)
- - - (161,144)
(220,140) (220,140) 142,623
(220,140) (220,140) (18, 521)
(56,405,203) (2201140) (56,625,343) (51,364,370)
17,565,368
-
17,565,368
16,107,447
14,522,220
-
14,522,220
14,355,566
5,829,540
-
5,829,540
6,645,598
7,044,997
-
7,044,997
5,054,209
2,858,850
38,600
2,897,450
65,732
2,132,720
-
2,132,720
1,324,596
137
(137)
-
-
49,953,832
38,463
49,992,295
43,553;148
(6,451,371)
(181,677)
(6,633,048)
(7,811,222)
255,540,163
2,151,232
257,691,395
265,502,617
$ 249,088,792
1,969,555
251,058,347
257,691,395
17
CITY OF WEST COVINA
Balance Sheet - Governmental Funds
June 30, 2005
General
Debt Service
Assets
Cash and investments
$ 19,653,164
18,533,978,
Cash and investments with fiscal agent
-
1,389,171
Receivables:
Accounts
204,059
12,539
Taxes
3,420,686
-
Interest
147,094
-
Assessments
-
-
Notes and loans
-
-
Due from other funds (note 3)
2,316,794
=
Due from other governments
2,114,850
-
Inventory
-
-
Prepaids and other assets
54,516
-
Advances to other funds (note 4)
31,488,655
-
Land held for resale
-
-
Total assets
$ 59,399,818
19,935,688
Liabilities and Fund Balance
Liabilities:
Accounts payable
$ 728,776
4,457
Other accrued liabilities
2,927,322
128,804
Pass -through payable
-
-
Due to other funds (note 3)
227,835
-
Deposits
323,683
-
Deferred revenue
7,476,846
-
Advances from other funds (note 4)
- -
-
Total liabilities
11,694,462
133,261
Fund balance:
Reserved for:
Encumbrances
135,271
1,751
Notes and loans
-
-
Inventory
-
-
Prepaids and other assets
54,516
-
Advances to other funds
24,011,809
-
Land held for resale
-
-
Low and moderate income housing
-
-
Debt service requirements
-
1,389,171
Unreserved, reported in
General fund
23,513,760
-
Special revenue funds
-
Debt service funds
-
18,411,505
Capital projects funds
-
-
Total fund balance
47,715,356
19,802,427
Total liabilities and fund balance
$ 59,399,818
19,935,688
See accompanying notes to the basic financial statements.
CDC
Debt Service
4,352,517
6,001,826
116
747,368
20,719
227,835
-1,625
75,696
444,354
658,983
23,469,655
24,648,688
1,625
6,001,826
(19,300,133)
(1 S,lyb,62S1)
11,352,006
18
'
CDC
Non -Major
Total Governmental Funds
Capital Projects
Governmental
2005
2004
16,600,015
11,982,619
71,122,293
68,208,271
1,392,277
11,573,915
20,357,189
8,204,146
-
282,129
498,843
252,843
61,804
585,151
4,815,009
4,197,633
95,461
34,190
297,464
239,639
43,350,000
61,804
43,411,804
44,332,161
24,782,606
6,027,263
30,809,869
34,898,142
-
10,384
2,555,013
1,948,616
-
3,494,296
5,609,146
4,115,344
1
-
14,977
14,977
14,028
287,500
908
344,549
344,933
-
-
31,488,655
33,762,474
'
11,244,583
-
11,244,583
11,847,667
97,814,246
34,067,636
222,569,394
212,365,897
268,439
36,982
1,845,005
391,239
2,846,677
3,560,043
1,887,890
2,346,770
444,354
602,211
97,370
1,517,033
21501,221
1,365,802
625,256
-
948,939
570,449
67,701,066
6,966,385
82,144,297
88,856,923
8,000,000
19,000
31;488,655
33,762,474
'
76,729,113
10,738,662
123,934,186
129,392,519
1,472,260
10,040,055
11,649,337
2,229,823
431,540
1,425,000
1,856,540
3,177,578
-
14,977
14,977
14,028
287,500
908
344,549
344,933
24,011,809
23,811,809
11,244,583
-
11,244,583
11,847,667
11,194,342
-
11,194,342
9,178,675
1,392,277
8,783,274
8,199,754
i-
-
-
5,980,930
23,513,760
5,980,930
24,427,158
6,021,975
-
-
(888,628)
(4,625,186)
(4,937,369)
5,867,104
929,735
(1,654,836)
21,085,133
23,328,974
98,635,208
82,973,378
97,814,246
34,067,636
222,569,394
212,365,897
19
CITY OF WEST COVINA
Governmental Funds
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Assets
June 30, 2005
Fund balances of governmental funds $ 98,635,208
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.
Capital assets 303,101,027
Accumulated depreciation (88,104,281)
Long term debt and compensated absences that have not been included
in the governmental fund activity:
Bonds payable (108,145,000)
Compensated absences (3,908,268)
Other long term liabilities (35,158,744)
Accrued interest payable for the current portion 'of interest due on
bonds payable has not been reported in the governmental funds. (1,196,484)
Revenues that are measurable but not available are recorded as
deferred revenue under the modified accrual basis of accounting. 82,005,753
Internal service funds are used by management to charge the costs of
certain activities, such as equipment management, to individual funds.
The assets and liabilities of the internal service funds must be added
to the statement of net. assets 1,859,581
Net assets of governmental activities $ 249,088,792
See accompanying notes to the basic financial statements.
20
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21
CITY OF WEST COVINA
Statement of Revenues, Expenditures and Changes in Fund Balances -
Governmental Funds
Year ended June 30, 2005
Revenues:
:Taxes
$ 25,398,013
-
Special assessments
-
-
Licenses and permits
1,045,331
-
Fines and forfeitures
118,954
Investment income
5,231,516
1,874,145
Rental income -
91,010
-
Revenue from other agencies
7,457,837
Charges for services
1,988,021
-
Repayment of notes and loans
-
-
Developer fees
-
-
Other revenues
563,836
385,949
Total revenues
41,894,518
2,260,094
Expenditures -
Current:
General government
2,245,494
-
Public safety
36,709,896
8,720
Public works
3,709,671
-
-Community services
1,002,117
-
Community development
488,397
-
Debt service:
Principal
-
410,464 .
Interest and fiscal charges
-
1;293,022
Pass -through payments
-
-
Total expenditures
44,155,575
1,712,206
Excess (deficiency) of revenues
over (under) expenditures
(2,261,057)
547,888
Other financing sources (uses):
Transfers in (note 23)
2,046,447
1,266,472
Transfers out (note 23).
(895,203)
(342,251)
Issuance of long-term debt
-
-
Total other financing sources (uses)
1,151,244
924,221
Net change in fund balances
(1,109,813)
1,472,109
Fund balances (deficit) at beginning of year,
48,825,169
18,330,318
Fund balances (deficit) at end of year
$ 47,715;356
19,802,427
See accompanying notes to the basic financial statements.
22
CDC
Debt Service
17,427,791
506,795
464,354
18,398,940
1,345,000
5,794,665
4,817,371
11,957,036
6,441,904
1,324,198
(4,894,468)
(3,560,270)
2,881,634
(16,178,316)
13,296,682
I
Non -Major
CDC
Governmental
Total Governmental Funds
Capital Projects
Funds
2005
2004
-
6,221,186
49,046,990
47,634,431
-
3,448,956
3,448,956
3,311,896
-
1,428
1,046,759
1,425,077
-
1,145,646
1,264,600
1,410,536
301,521
325,244
8;239,221
3,564,751
472,868
25,686
589,564
593,486
-
4,594,571
12,052,408
8,586,703
-
1,545,148
3,533,169
2,279,000
1,753,789
583,169
2,336,958
1,877,550
-
378;493
378,493
916,384
487,459
615,566
2,517,164
1,624,656
3,015,637
18,885,093
84,454,282
73,224,470
-
680,918
2,926,412
2,288,433
-
924,633
37,643,249
34,037,594
-
9,227,520
12,937,191
10,996,162
-
7,335,637
8,337,754
10,630,005
4,129,971
611,452
5,229,820
8,814,434
445,000
-
2,200,464
1,807,869
814,195
-
7,901,882
7,664,295
-
-
4,917,371
4,067,099
5,389,166
18,780,160
81,994,143
80,305,890
(2,373,529)
104,933
2,460,139
(7,081,420)
4,884,468
320,552
.9,842,137
8,781,210
(981,947)
(3,036,577).
(10,140,446)
(8,531,210)
-
13,500,000
13,500,000
261,792
3,902,521
10,783,975
13,201,691
511,792
1,528,992
10,888,908
15,661,830
(6,569,628)
19,556,141
12,440,066
82,973,378
89,543,006 ,
21,085,133
23,328,974
98,635,208
82,973,378
23
CITY OF WEST COVINA
Governmental Funds
Reconciliation of the Statement of Revenues, Expenditures,
and Changes in Fund Balances of Governmental Funds
to the Statement of Activities
Year ended June 30, 2005
Net changes in fund balances - total governmental funds $ 15,661,830
Amounts reported for governmental activities in the statement of
activities is different because:
Governmental funds report capital outlay as expenditures. However, in
the statement of activities, the cost of those assets is allocated over their
estimated useful lives as depreciation expense, This is the amount by which
capital outlays exceeded depreciation in the current period.
Capital outlay
5,779,372
Depreciation expense
(8;201,030)
Proceeds from the issuance of debt is reported as other financing sources in
governmental funds. The issuance of bonds increases liabilities in the statement
of net assets, but does not result in an increase in net assets in the statement
of activities.
(13,500,000)
Repayment of bond principal is an expenditure in the governmental funds,
but the repayment reduces long-term liabilities in the statement of net assets.
2,200,464
Changes in pass -through obligations payable is an expenditure in the governmental
funds, but reduces or increases long-term liabilities in the statement of net assets.
(1,786,772)
The statement of net assets includes accrued interest on long term debt.
(96,113)
To record as an expense the net change in compensated absences in the
statement of activities. - (65,488)
Revenues that are measurable but not available are recorded as
deferred revenue under the modified accrual basis of accounting. (5,901,016)
Internal service funds are used by management to charge the costs of certain
activities, such as equipment management, to individual funds. The net revenues
(expenses) of the internal service funds is reported with governmental activities. (542,618)
Change in net assets of governmental activities
$ (6,451,371) '
See accompanying notes to the basic financial statements.
24
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CITY OF WEST COVINA
Statement of Net Assets - Proprietary Funds
June 30, 2005
Assets
Current assets:
Cash and investments
Receivables:
Accounts
Interest
Due from other agencies
Inventory
Prepaids and other assets
Total current assets
Capital assets:
Construction in progress
Other capital assets
Less accumulated depreciation
Capital assets, net
Total assets
Liabilities and Net Assets
Liabilities:
Current liabilities:
Accounts payable
Other accrued liabilities
Due to other funds (note 3)
Current portion of
compensated absences payable
Total current liabilities
Non -current liabilities:
Claims and judgments payable
Compensated absences payable
Total non -current liabilities
Total liabilities
Business -
Type Activities
Enterprise
Funds
$ 2,021,785
Governmental
Activities
Internal
Totals
2005 2004
6,359,926 8,381,711 8,050,506
-
70,339
70,339
53,820
5,995
18,061
24,056
11,571
32,025
-
32,025
163,258
-
83565
83,565
67,540
720
21,250
21,970
1,409
2,060,525
6,553,141
8,613,666
8,348,104
-
4,353
4,353
18,648
731,949
4,060,734
4,792,683
5,414,134
(595,012)
(2,731,392)
(3,326,404)
(3,382,476)
136,937
1,333,695
1,470,632
2,050,306
2,197,462
7,886,836
10,084,298
10,398,410
30,069
260,283
290,352
229,791
54,339
11,356
65,695
32,664
-
53,792
53,792
582,814
24,708
69,599
94,307
35,246
109,116
395,030
504,146
880,515
-
5,616,313
5,616,313
4,816,938
118,791
15,912
134,703
147,526
118,791
5,632,225
5,751,016
4,964,464
227,907
6,027,255
6,255,162
5,844,979
Net assets:
Invested in capital assets 136,937 1,333,695 1,470,632 2,050,306
Unrestricted 1,832,618 525,886 2,358,504 2,503,125
Total net assets $ 1,969,555 1,859,581 3,829,136 4,553,431
See accompanying notes to the basic financial statements.
25
CITY OF WEST COVINA
Statement of Revenues, Expenses and Changes in Fund Net Assets - Proprietary Funds
Year ended June 30, 2005
Operating revenues:
Charges for services
Other revenues
Total operating revenues
Operating expenses:
Business-
Governmental
Type Activities
Activities -
Enterprise
Internal
Totals
Funds
Service Funds
2005 2004
$ 1,992,662
4,621,476
6,614,138 6,555,728.
-
5,120
5,120 1,548
1,992,662
4,626,596
6,619,258 6,557,276
Personnel services 1,257,939
Cost of sales; services and operations 916,076
Depreciation 38,787
Insurance and claims -
Total operating expenses
Operating income (loss)
Nonoperating revenues (expenses):
Investment income
Gain (loss) on sale of asset
Total nonoperating
revenues (expenses)
Income (loss) before transfers
Transfers in
Transfers out
2,212,802
(220,140)
38,600
38,600
(191,540)
249,863
(250,000)
711,998
1,969,937
1,687,777
1,092,295
2,008,371
2,347,071
248,255
287,042
266,942
3,195,968
3,195,968
745,525
5,248,516 7,461,318 5,047,315
(621,920) (842,060) 1,509,961
89,462 128,062 47,472
(10,160) (10,160) -
79,302 117,902 47,472
(542,618) (724,158) 1,551,433
249,863 =
- (250,000) (250,000)
Change in net assets (181,677) (542,619) (724,295) 1,307,433
Net assets at beginning of year 2,151,232 2,402,199 4,553,431 3,245,998
Net assets at end of year. $ 1,969,555 1,859,581 3,929,136 4,553,431
See accompanying notes to the basic financial statements.
26
CITY OF WEST COVINA
Statement of Cash Flows -Proprietary Funds
Year ended June 30,
2005
Business-
Governmental
Type Activities
Activities -
Enterprise
Internal
Totals
Funds
Service Funds
2005
2004
Cash flows from operating activities:
Cash received from customers
$ 2,123,895
-
2,123,895
2,092,245
Cash received from user departments
-
4,610,077
4,610,077
4,262,221
Cash payments to suppliers for
goods and services
(1,040,918)
(3,340,071)
(4,380,989)
(4,170,295)
Cash payments to employees
for services
(1,185,953)
(704,715)
(1,890,668)
(1,673,312)
Net cash provided by (used for)
operating activities
(102,976)
565,291
462,315
510,859
Cash flows from noncapital financing activities:
Cash received from other funds
-
29,551
29,551
159,527
Cash paid to other funds
(260,284)
-
(260,284)
(250,000)
Net cash provided by (used for)
noncapital financing activities
(260,284)
29,551
(230,733)
(90,473)
Cash flows from capital and related
financing activities:
Cash paid for acquisition and
construction of capital assets
(15,275)
(679)
(15,954)
(154,636)
Net cash proved by (used for) capital
and related financing activities
(15,275)
(679)
(15,954),
(154,636)
Cash flows from investing activities:
Interest received on investments
36,461
79,116
115,577
51,027
Net cash provided by (used for)
investing activities
36,461
79,116
115,577
51,027
Net increase (decrease) in cash
and cash equivalents
(342,074)
673,279
331,205
316,777.
Cash and cash equivalents
at beginning of year
2,363,859
5,686,647
8,050,506
7,733,729
Cash and cash equivalents at end of year
$ 2,021,785
6,359,926
8,381,711
8,050,506
(Continued)
27
CITY OF WEST COVINA
Statement of Cash Flows -Proprietary Funds
(Continued)
Business-
Governmental
Type Activities
Activities -
Enterprise
Internal
Totals
Funds
-Service Funds
2005
2004
Reconciliation of operating income (loss)
to net cash provided by (used for)
operating activities:
Operating income (loss)
$ (220,140)
(621,920)
(842,060)
1,509,961
Adjustments to reconcile operating
income (loss) to net cash provided
by (used for) operating activities:
Depreciation
38,787
248,255
287,042
266,942
(Increase) decrease in
accounts receivable
-
(16,519)
(I6,519)
(49,153)
(Increase) decrease in due from
other agencies
131,233
(16,025)
115,208
-(154,458)
(Increase) decrease in prepaids
and other assets
(720)
(19,841)
(20,561)
(289)
Increase (decrease) in
accounts payable
(124,122)
184,683
60,561
(32,850)
Increase (decrease) in other -
accrued liabilities
29,991,
3,040
33,031
(4,164)
Increase (decrease) in compensated
absences payable
41;995
4,243
46,238
18,629
Increase (decrease) in claims
and judgments payable
-
799,375
799,375
(1,043,759)
Total adjustments
117,164
1,187,211
1,304,375
(999,102)
Net cash provided by (used for)
operating activities
$ (102,976)
565,291
462,315
510,859
Noncash capital, financing
and investing activities:
Change in market value of investments $ - - - (40,530)
Total noncash capital, financing
and investing activities $ - - - (40,530)
See accompanying notes to the basic financial statements.
28
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CITY OF WEST COVINA
Statement of Fiduciary Assets and Liabilities
June 30, 2005
Assets
Cash and investments (note 2)
Accounts receivable
Total assets
Liabilities and Net Assets
Liabilities:
Accounts payable
Deposits
Total liabilities
Special Deposits Fund
2005 2004
$ 752,190 714,936
2,817 -
$ 754,997 714,936
$ 42,517 4,917
712,480 710,019
754 997 714,936
See accompanying notes to the basic financial statements.
29
CITY OF WEST COVINA
Notes to the Basic Financial Statements
Year ended June 30, 2005
1
�) Summary of Significant Accounting Policies ,
The basic financial statements of the City of West Covina, California (City) have been
prepared in conformity with generally accepted accounting principles (GAAP) as applied
to government units. The Governmental Accounting Standards Board (GASB) is the
accepted standard -setting body for establishing governmental accounting and financial
reporting principles. The more significant of the City's accounting policies are described
below. '
(a) Reporting Entity
The City of West Covina was incorporated on February .23, 1923 under the
general laws of the State of California. The accompanying financial statements
present the City of West Covina and its component units, entities for which the
City is considered to be financially accountable. The City is considered to be
,
financially accountable for an organization if the City appoints a voting majority
of that organization's governing body and the City is able to impose its will on
that organization or there is a potential for that organization to provide specific
financial benefits to or impose specific financial burdens on the City. The City is
also considered to be financially accountable for an organization if that
organization is fiscally dependent (i.e., it is unable to adopt its budget, levy taxes,
set rates or charges, or issue bonded debt without approval from the City). In
'
certain cases, other organizations are included as component units if the nature
and significance of their relationship with the City are such that their exclusion
would cause the City's financial statements to be misleading or incomplete.
,
Included within the financial reporting entity of the City of West Covina are the
City of West Covina Community Development Commission, and the West
Covina Public Financing Authority because each component unit meets the
,
above -mentioned criteria.
A brief description of each component unit follows:
The City of West Covina Community Development Commission
t
The Community Development Commission ("Commission"), formerly the
Redevelopment Agency of the City of West Covina, was established on August 9,
1971. The primary purpose of the Commission is to eliminate blighted areas by
encouraging development of residential, commercial, industrial, recreational and
'
public facilities. The City Council appoints the Commission director and has full
accountability for the Commission's fiscal matters. The Commission's financial
data and transactions are included within the debt service fund type and the
,
capital projects fund type. Revenues of the Commission consist primarily of
property tax allocations on the incremental increase of property values in the
redevelopment area and interest income.
,
30
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CITY OF WEST COVINA
Notes to the Basic Financial Statements
(Continued)
(1) SummM of Significant Accounting Policies, (Continued)
West Covina Public Financing_ Authority
The West Covina Public Financing Authority ("Authority") was created by a joint
exercise of joint powers agreement between the City of West Covina and the
Community Development Commission of the City of West Covina on June 1,
1990. The purpose of the Authority is .to provide, through the issuance of debt,
financing necessary for various capital improvements. The Authority is
administered by the Board who are the members of the City Council. The
Authority's sole source of income is installment sale, loan and lease payments
received from the City and Community Development Commission which are used
to meet the debt service requirements on debt issues. The Authority is blended
into the debt service funds of the City.
Since the City Council serves as the governing board for these component units,
all of the City's component units are considered to be blended component units.
Blended component units, although legally separate entities, are in substance, part
of the City's operations and so data from these units are reported with the
interfund data of the primary government. The City of West Covina Community
Development Commission issues separate component unit financial statements.
Upon their completion, financial statements of the component unit can be
obtained at City Hall, 1444 W. Garvey Avenue, West Covina, California 91793.
(b) Basis of Accounting and Measurement Focus
The basic f nancial statements of the City are composed of the following:
• Government -wide financial statements
• Fund financial statements
• Notes to the basic financial statements
Financial reporting is based upon all GASB pronouncements, as well as the FASB
Statements and Interpretations, APB Opinions, and Accounting Research
Bulletins that were issued on or before November 30, 1989 that do not conflict
with or contradict GASB pronouncements. FASB pronouncements issued after
November 30, 1989 are not followed in the preparation of the accompanying
financial statements.
31
CITY OF WEST COVINA
Notes to the Basic Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies, (Continued)
Government -wide Financial Statements
Government -wide financial statements display information about the reporting
government as a .whole, except for its fiduciary activities. These statements
include separate columns for the governmental and business -type activities of the
primary government (including its blended component units). Eliminations have
been made in the Statement of Activities so that certain allocated expenses are
recorded, only once (by the function to which they were allocated). However,
general government expenses have not been allocated as indirect expenses to the
various functions of the City.
Government -wide financial statements are presented using the economic
resources measurement focus and the accrual basis of accounting. Under the
economic resources measurement focus, all (both current and long-term)
economic resources and obligations of the reporting government are reported in
the government -wide financial statements. Basis of accounting refers to when
revenues and expenses are recognized in the accounts and reported in the financial
statements. Under the accrual basis of accounting, revenues, expenses, gains,
losses, assets, and liabilities resulting from exchange and exchange -like
transactions are recognized when the exchange takes place. Revenues, expenses,
gains, losses, assets and liabilities resulting from nonexchange transaction are
recognized in accordance with the requirements of GASB Statement No. 33.
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 and 2) grants and contributions that are restricted to meeting the
operational or capital requirements of a particular function. Program revenues are
netted with program expenses in the statement of activities to present the net cost
of each program. Taxes and other items not included among program revenues are
reported instead as general revenues.
Amounts paid to acquire capital assets are capitalized as assets in the government -
wide financial statements, rather than reported as an expenditure. Proceeds of
long-term debt are recorded as a liability in the government -wide financial
statements, rather than as an other financing source. Amounts paid to reduce long-
term indebtedness of the reporting government are reported as a reduction of the
related liability, rather than as an expenditure.
32
1
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1
CITY OF WEST COVINA
Notes to the Basic Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies, (Continued)
Fund Financial Statements
The underlying accounting system of the City is organized and operated on the
basis of separate funds, each of which is considered to be a separate accounting
entity. The operations of each fund are accounted for with a separate set of self -
balancing accounts that comprise its assets, liabilities, fund equity, revenues and
expenditures or expenses, as appropriate. Governmental resources are allocated to
and.accounted for in individual funds based upon the purposes for which they are
to be spent and the means by which spending activities are controlled.
Fund financial statements for the primary government's governmental,
proprietary, and fiduciary funds are presented after the government -wide financial
statements. These statements display information about the major funds
individually and nonmajor funds in the aggregate for governmental and enterprise
funds. Fiduciary statements include financial information for fiduciary funds and
similar component units. Fiduciary funds of the City primarily represent assets
held by the City in a custodial capacity for other individuals or organizations.
Governmental Funds
In the fund financial statements, governmental funds are presented using the
modified -accrual basis of accounting. Their revenues are recognized when they
become measurable and available as net current assets. Measurable means that
the amounts can be estimated, or otherwise determined. Available means that the
amounts were collected during the reporting period or soon enough thereafter to
be available, to finance the expenditures accrued for the reporting period.
Revenue recognition is subject to the measurable and available criteria for the
governmental funds in the fund financial statements. Significant revenues subject
to the criteria include taxes, licenses and permits, and intergovernmental
revenues. Exchange transactions. are recognized as revenues in the period in
which they are earned (i.e., the related goods or services are provided). Locally
imposed derived tax revenues are recognized as revenues in the period in which
the underlying exchange transaction upon which they are based takes place.
Imposed nonexchange transactions are recognized as revenues in the period for
which they were imposed. If the period of use is not specified, they are recognized
as revenues when an enforceable legal claim to the revenues arises or when they
are received, whichever occurs first. Government -mandated and voluntary
nonexchange transactions are recognized as revenues when all applicable
eligibility requirements have been -met.
33
CITY OF WEST COVINA '
Notes to the Basic Financial Statements
(Continued)
�1) Summary of Significant Accounting Policies, (Continued)
In the fund financial statements, governmental funds are presented using the
current financial resources measurement focus. This means that only current
assets and current liabilities are generally included on their balance sheets. The
1
reported fund balance (net current assets) is considered to be a measure of
"available spendable resources." Governmental fund operating statements present
increases (revenues and other financing sources) and decreases (expenditures and
other financing uses) in net current assets. Accordingly, they are said to present a
summary of sources and uses of "available spendable resources" during a period.
Non -current portions of long-term receivables due to governmental funds are
'
reported on their balance sheets in spite of their spending measurement focus.
Special reporting treatments are used to indicate, however, that they should not be
considered "available .spendable resources," since they do not represent net
'
current assets.
Revenues, expenses, assets, and liabilities resulting from nonexchange '
transactions are recognized in accordance with the requirements of GASB
Statement No. 33 which requires that local governments defer grant revenue that
is not received within 60 days after the fiscal year ends to meet the "available" '
criteria of revenue recognition. In the past, the industry practice for grants was to
recognize revenue in the fiscal year in which the related expense was incurred.
Therefore recognition of governmental fund type revenue represented by non-
current receivables are deferred until they become current receivables. Non-
current portions -of other long-term receivables are offset by fund balance reserve
accounts.
Sales taxes, property taxes, franchise taxes, revenue from other agencies, rental
income, occupancy taxes 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 ,to the extent normally collected within the
availability period. Other revenue items are considered to be measurable and
LL available . where cash is received by the government. The availability period for
these revenues is 60 days, with the exception of a seven month availability period
for sales tax and motor vehicle in-leiu revenues.
Due to the nature of their spending measurement focus, expenditure recognition '
for governmental fund types excludes amounts represented by noncurrent
liabilities. Since they do not affect net current assets, such long-term amounts are
not recognized as governmental fund type expenditures or fund liabilities.
7
34 '
CITY OF WEST COVINA
' Notes to the Basic Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies, (Continued)
Amounts expended to acquire capital assets are recorded as expenditures in the
1 year that resources were expended, rather than as fund assets. The proceeds of
long-term debt are recorded as other financing sources rather than as a fund
liability. Amounts paid to reduce long-term indebtedness are reported as fund
expenditures.
' Governmental Funds (Continued)
' When both restricted and unrestricted resources are combined in a fund, expenses
are considered to be paid first from restricted resources, and then from
unrestricted resources.
' ProprietM and Fiduciary Funds
The City's enterprise and internal service funds are proprietary funds. In the fund
' financial statements, the proprietary funds and fiduciary funds are presented using
the accrual basis of accounting. Revenues are recognized when they are earned
and expenses are recognized when the related goods or services are delivered. In
the fund financial statements, proprietary funds are presented using the economic
' resources measurement focus. This means that all assets and all liabilities
(whether current or noncurrent) associated with their activity are included on their
' balance sheets. Proprietary fund type operating statements present increases
(revenues) and decreases (expenses) in total net assets.
Proprietary fund operating revenues, such as charges for services, result from
exchange transactions associated with the principal activity of the fund. Exchange
transactions are those in which each party receives and gives up essentially equal
values. Non -operating revenues, such as subsidies, taxes, and investment earnings
result from nonexchange transactions or ancillary activities. Amounts paid to
acquire capital assets are capitalized as assets in the enterprise fund financial
statements, rather than reported as an expenditure. Proceeds of long-term debt are
recorded as a liability in the enterprise fund financial statements, rather than as an
' other financing source. Amounts paid to reduce long-term indebtedness of the
enterprise fund are reported as a reduction of the related liability, rather than as an
expenditure. Agency funds are custodial in nature (assets equal liabilities) and do
not involve the recording of City revenues and expenses.
' 35
1
CITY OF WEST COVINA
Notes to the Basic Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies, (Continued)
(c) Fund Classifications
The City reports the following major governmental funds:
General Fund This is the primary operating fund of the City. It accounts for all
activities of the general government, except those required to be accounted for in
another fund.
Debt Service Fund This fund is used to account for the payment of principal and
interest on the City's long-term debt issues.
Community Development Commission Debt Service Fund This fund is used to
account for the accumulation of resources for, and the payment of, Community
Development Commission long-term debt principal, interest and related costs.
Communi Development Commission Capital Projects Fund This capital projects
fund is used to account for the financial resources to be used for property
acquisition, improvement and rehabilitation within the project areas authorized
under provisions of the California Redevelopment Law.
Additionally, the City reports the following fund types:
Enterprise Funds These funds are used to account for operations that are financed
and operated in a manner similar to private business enterprises. The City's
enterprise funds are used to account for the Police Department's driving and
firearm simulator program as well as computer services provided by the Police
Department to other public agencies.
Internal Service Funds These funds are used to account for vehicle and equipment
maintenance and replacement and for the City's self-insurance programs.
Departments of the City are charged for the services provided or benefits received
from these funds.
Agency Fund This fund is used to account for special deposits received by the
City.
(d) Encumbrances
Encumbrance accounting, under which purchase orders, contracts and other
commitments for the expenditure of funds are recorded in order to reserve that
portion of the fund balance, is employed in the governmental funds.
Encumbrances are reported as reservations of fund balances in the fund financial
statements since they do not constitute expenditures or liabilities.
L
F
11
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u
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1
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M.
CITY OF WEST COVINA
' Notes to the Basic Financial Statements
(Continued)
' (1) SummM of Significant Accounting Policies, (Continued)
(e) Cash and Investments
' Investments are reported in the accompanying balance sheet at fair value, except
for certain certificates of deposit and investment contracts that are reported at cost
because they are not transferable and they have terms that are not affected by
' changes in market interest rates.
Changes in fair value that occur during a fiscal year are recognized as investment
income reported for that fiscal year. Investment income includes interest earnings,
changes in fair value, and any gains or losses realized upon the liquidation or sale
of investments.
' The City pools cash and investments of all funds, except for assets held by fiscal
agents. Each fund's share in this pool is displayed in the accompanying financial
statements as cash and investments. Investment income earned by the pooled
' investments is allocated to the various funds based on each fund's average cash
and investment balance.
(f) Cash Equivalents
For purposes of the statement of cash flows, cash equivalents are defined as short-
term, highly liquid investments that are both readily convertible to known
' amounts of cash or so near their maturity that they present insignificant risk of
changes in value because of changes in interest rates, and have an original
maturity date of 3 months or less. Cash equivalents represent the proprietary
funds' share in the cash and investment pool of the City of West Covina. Certain
restricted assets and deposits of proprietary funds consist of investments which
are not considered to be cash equivalents as defined above and therefore excluded
from the statements of cash flows.
' (g) Inventory
' Inventory is stated at average cost. Physical counts of inventory are taken on a
cyclical basis during each fiscal year with perpetual records adjusted to actual at
that time. The City uses the consumption method of accounting for inventory.
37
CITY OF WEST COVINA
Notes to the Basic Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies, (Continued)
(h) Land Held for Resale
Land held for resale represents land, structures, and their related improvements
that were acquired for resale in accordance with the objective of the
Redevelopment Project. Land held for resale is valued at the lower of cost or the
sales price per contract with the developer. A portion of fund balance is reserved
for land held for resale in the fund financial statements to indicate that a portion
of fund balance is not available for future expenditures.
(i) Propejjy Taxes
Under California law, property taxes are assessed and collected by the counties up
to 1 % of assessed value, plus other increases approved by the voters. The
property taxes go into a pool, and are then allocated to the cities based on
complex formulas. Accordingly, the City of West Covina accrues only those
taxes which are received within 60 days after year end.
The property tax calendar is as follows: .
Lien Date: January 1
Levy Date: July 1
Due Date: First Installment - November 1
Second Installment - February 1
Delinquent Date: First Installment - December 11
Second Installment - April 11
Taxes are collected by Los Angeles County and are remitted to the City
periodically. Dates and percentages are as follows:
December 20
January 20
February 20
April 20
May 20
July 20
40% Advance
10% Advance
Collection No. 1
3 5 % Advance
Collection No. 2
Collection No. 3
1
(j) Claims and Judgments ,
The City records a liability for litigation, judgments, and claims when it is
probable that an asset has been impaired or a liability (including incurred but not '
reported) has been incurred prior to year end and the probable amount of loss (net
of any insurance coverage) can be reasonably estimated. This liability is recorded
in the internal service fund that account for the City's self insurance activities.
. 38
L
ICITY OF WEST COVINA
' Notes to the Basic Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies, (Continued)
(k) Advances to Other Funds
Noncurrent portions of long-term interfund loan receivables are reported as
advances and are offset equally by a fund balance reserve account in fund
financial statements which indicates that they do not constitute expendable
available financial resources and therefore are not available. for appropriation.
(1) Employee Leave Benefits
In accordance with GASB Statement No. 16, a liability is recorded for unused
vacation and similar compensatory leave balances since the employees'
entitlement to these balances are attributable to services already rendered and it is
probable that virtually all of these balances will be liquidated by either paid time
off or payments upon termination or retirement.
' Under GASB Statement No. 16, a liability is recorded for unused sick leave
balances only to the extent that it is probable that the unused balances will result
in termination payments. This is estimated by including in the liability the unused
' balances of employees currently entitled to receive termination payment, as well
as those who are expected to become eligible to receive termination benefits as a
result of continuing their employment with the City. Other amounts of unused
sick leave are excluded from the liability since their payment is contingent solely
upon the occurrence of a future event (illness) which is outside the control of the
City and the employee.
The General Fund typically has been used to liquidate the liability for
compensated absences.
(m) Capital Assets
Capital assets greater than $5,000 and infrastructure greater than $100,000 are
capitalized and recorded at cost or at the estimated fair value of the assets at the
time of acquisition where complete historical records have not been maintained.
Contributed capital assets are valued at their estimated fair market value at the
date of the contribution. The costs of normal maintenance and repairs that do not
add to the value of the asset or materially extend asset lives are not capitalized.
Capital assets include public domain (infrastructure) capital assets consisting of
certain improvements including roads, bridges, curbs and gutters, streets and
sidewalks, medians, sewer and storm drains.
39
CITY OF WEST COVINA
Notes to the Basic Financial Statements
(Continued)
1) Summary of Sianificant Accounting Policies, (Continued
Depreciation has been provided using the straight-line method over the estimated
useful life of the asset in the government -wide financial statements and in the
fund financial statements of the proprietary funds.
Interest is capitalized on proprietary fund assets acquired with tax-exempt debt.
The amount of interest to be capitalized is calculated by offsetting interest
expense incurred from the date of the borrowing until completion of the project
with interest earned on invested proceeds over the same period.
The following schedule summarizes capital asset useful lives:
Governmental Activities:
Infrastructure - pavement 25 years
Infrastructure - other 20-75 years
Buildings 20-50 years
Improvements other than buildings 20-50 years
..Equipment and vehicles 5-25 years
Business -type Activities:
Equipment and vehicles 5-25 years
(o) Comparative Data
Comparative total data for the prior year have been presented in the
accompanying financial statements in order to provide an understanding of
changes in the City's financial position and operations. However, comparative
(i.e., presentation of prior year totals by fund type) data. have not been presented
in each of their statements since their inclusion would make the statements unduly
complex and difficult to read. Certain minor reclassifications of prior year data
have been made in order to enhance their comparability with current year figures.
(2) Cash and Investments
Cash and investments held by the City at June 30, 2005 are reported in the accompanying
financial statements as follows:
Statement of Net Assets:
Cash and investments $79,504,004
Cash and investments with fiscal agent 20,357,189
40
1
1
1
1
1
1
1
1
1
CITY OF WEST COVINA
Notes to the Basic Financial Statements
(Continued)
(2) Cash and Investments, (Continued)
Fiduciary Funds:
Statement of Assets and Liabilities:
Cash and investments 752,180
Total cash and investments $100,613,373
Cash and investments as of June 30, 2005 consists of the following:
Cash on hand $ 6,665
Deposits with financial institutions 2,268,869
Investments 98,337,839
Total cash and investments $100.613,373
Investments Authorized by the California Government Code and the Entity's Investment Policy
' The table below identifies the investment types that are authorized for the City by the California
Government Code and the City's investment policy. The table also identifies certain provisions
of the California Government Code (or the City's investment policy, if more restrictive) that
address interest rate risk and concentration of credit risk. This table does not address investments
of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of
the City, rather than the general provisions of the California Government Code or the City's
investment policy.
Authorized *Maximum *Maximum
Investment Types By Investment *Maximum Percentage Investment
Authorized by State Law Policy Maturily. Of Portfolio In One Issuer
Local Agency Bonds No 5 years None None
U.S. Treasury Obligations Yes 5 years None None
U.S. Agency Securities Yes 5 years None None
Banker's Acceptances Yes 180 days _ 40% 30%
Commercial Paper Yes 270 days 25% 10%
Negotiable Certificates of Deposit Yes 5 years 30% None
Repurchase Agreements Yes 100 days 20% None
Reverse Repurchase Agreements Yes 92 days 20% None
Medium -Term Notes Yes 5 years 30% None
Mutual Funds No N/A 20% 10%
' 41
CITY OF WEST COVINA '
Notes Ito the Basic Financial Statements
Continued ,
(2) Cash and Investments, (Continued)
Authorized
*Maximum
*Maximum
Investment Types
By Investment
*Maximum
Percentage
Investment
Authorized by State Law
Policy
Maturi
Of Portfolio
In One Issuer
Money Market Mutual Funds
Yes
N/A
20%
10%
Mortgage Pass -Through Securities
County Pooled Investment Funds
Yes
Yes
5 years
N/A
20%
None
None
None
Local Agency Investment Fund (LAIF)
Yes
N/A
None
None
JPA Pools (other investment pools)
No
N/A
None
None
'.
* Based on state.law requirements or investment policy requirements,
whichever is more restrictive.
Investments Authorized by Debt Agreements
Investment of debt proceeds held by 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. The table below identifies the investment. types that. are authorized for
investments held by bond trustee. The table also identifies certain provisions of these debt
agreements that address interest rate risk and concentration of credit risk.
Authorized Maximum
Investment Type . Maturi
'
U.S. Treasury Obligations None
U.S. Agency Securities None
Certificates of Deposit None
Banker's Acceptances 360-365 days
Commercial Paper 365 days
Money Market Mutual Funds N/A
Repurchase Agreements 30 days- 6 months
Local Agency Investment Fund None
Investment Agreements None
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair
value of an investment. Generally, the longer the maturity of an investment, the greater the
'
sensitivity of its fair value to changes in market interest rates. One of the ways that the City
manages its exposure to interest rate risk is by purchasing a combination of shorter term and
longer term investments and by timing cash flows from maturities so that a portion of the
,
portfolio is maturing or coming close to maturity evenly over time as necessary to provide the
I ash flow and liquidity needed for operations.
42
CITY OF WEST COVINA
Notes to the Basic Financial Statements
(Continued)
(2) Cash and Investments, (Continued)
Information about the sensitivity of the fair values of the City's investments (including
investments held by bond trustee) to market interest rate fluctuations is provided by the
following table that shows the distribution of the City's investments by maturity:
ini
Investment Type I
Carrying I Less than I 1 to I 2 to I Over
Amount 1 year 2 years 3 years 3 yeai
US Agency securities $ 24,184,439
Local Agency
Investment Fund
46,115,820
46,115,820
Los Angeles County
Investment Pool .
7,665,253
7,665,253
Held by fiscal agent:
Money market funds
13,579,352
13,579,352
US Agency securities
793,771
793,771
Investment agreements
5,999,204
-
98,337,839 . 68,154,196
2,966,560 3,980,940 17,236,9391
- - 5,999,204
Disclosures Relating to Credit Risk
3,980,940 23,236,143I
Generally, credit risk is the risk that an issuer of an investment will not fulfill its
obligation to the holder of the investment. This is measured by the assignment of a rating
by a nationally recognized statistical rating organization. Presented below is the
minimum rating required by (where applicable) the California Government Code, the
City's investment policy, or debt agreements, and the actual rating as of year end for each
investment type..
43
CITY OF WEST COVINA
Notes to the Basic FinancialStatements
(Continued)
(2) Cash and Investments, (Continued)
Investment Type
Minimum
Legal
Carrying
Rating as of Year End
Not
Rating
Amount
AAA
AA
Rated
US Agency securities
N/A
$ 24,184,439
24,184,439
- -
Local Agency
Investment Fund
N/A
46,115,820
-
- 46,115,820
Los Angeles County
Investment Pool
N/A
7,665,253
-
- 7,665,253
Held by fiscal agent:
Money market funds
A
13,579,352
13,579,352
- -
US Agency securities
A
793,771
793,771
- -
Investment agreements
A
5,999,204
-
5,999,204 -
$98,337,839
38,557,562
.5,999,204 53,781,073
Concentration of Credit Risk
The investment policy of the City contains no limitations on the amount,that can be
invested in any one issuer beyond that stipulated by the California Government Code.
Investments in any one issuer (other than U.S. Treasury securities, mutual funds, and
external investment pools) that represent 5% or more of total City investments are as
follows:
Issuer Investment Type Reported Amount
FNMA Federal agency securities $5,458,130
FHLB Federal agency securities 5,958,440
Investments in any one issuer that represent 5% or more of total investments by reporting
unit (primary government, discretely presented component unit, governmental activities,
major fund, nonmajor funds in the aggregate, etc.) are as follows.
44
Ll
CITY OF WEST COVINA
Notes to the Basic Financial Statements
(Continued)
1
(2) Cash and Investments, (Continued)
iIssuer Investment1ype Reported Amount
Debt Service Fund:
1
FNMA
Federal agency securities
$ 4,469,070
FHLMC
Federal agency securities
12,767,869
CDC Debt Service Fund:
AIG
Investment agreement
996,534
Westdeutsche Landesbank
Investment agreement
5,002,670
Custodial Credit Risk
tCustodial credit risk for deposits is the risk that, in the event of the failure of a depository
financial institution, a government will not be able to recover its deposits or will not be
able to recover collateral securities that are in the possession of an outside parry. The
custodial credit risk for investments is the risk that, in the event of the failure of the
counterparty (e.g., broker -dealer) to a transaction, a government will not be able to
recover the value of its investment or collateral securities that are in the possession of
another party. The California Government Code and the City's investment policy do not
contain legal or policy requirements that would limit the exposure to custodial credit risk
for deposits or investments, other than the following provision for deposits: The
California Government Code requires that a financial institution secure deposits made by
1 state or local governmental units by pledging securities in an undivided collateral pool
held by a depository regulated under state law (unless so waived by the governmental
unit). The market value of the pledged securities in the collateral pool must equal at least
110% of the total amount deposited by the public agencies. California law also allows
financial institutions to secure City deposits by pledging first trust deed mortgage notes
having a value of 150% of the secured public deposits. As of June 30, 2005, $43,962 of
the City's deposits with financial institutions in excess of federal depository insurance
limits were held in uncollateralized accounts.
For investments held by bond trustee, the bond trustee selects the investment under the
terms of the applicable trust agreement, acquires the investment, and holds the investment
on behalf of the reporting government.
45
CITY OF WEST COVINA
Notes to the Basic Financial Statements
(Continued)
(2) Cash and Investments, (Continued)
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.
(3) Due From and To Other Funds
Interfund receivable and payable balances at June 30, 2005 are as follows:
Due from Other Funds Due to Other Funds Amount
General Fund CDC Debt Service Fund $ 658,983 (a)
CDC Capital Projects Fund 86,986
Internal Service Funds 53,792
Non -Major Governmental Funds 1,517,033 (b)
Total General Fund 2,316,794
CDC Debt Service. Fund General Fund 227,835
Non -Major
Governmental Funds CDC Capital Projects Fund 10,384
2 555 013
(a) Interfund balance is to accrue sales tax revenue owed to the General Fund.
(b) The largest component of these interfund balances is $1,218,575 as a result of short-
term borrowings to cover deficit cash in the Traffic Congestion Fund, the Grants
Fund, the BKK Community Fund, and the Community Development Block Grant
Fund at June. 30,2005.
46
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CITY OF WEST COVINA
Notes to the Basic Financial Statements
(Continued)
(4) Interfund Advances
The City has authorized several interfund advances to be used for the operations of the
funds receiving the advances. At June 30, 2005 the outstanding advances are:
Advances to Other Funds Advances from Other Funds
Amount
General Fund CDC Debt Service Fund $23,469,655 (a)
CDC Capital Projects Fund- 8,000,000 (b)
Non -Major Governmental Funds 19,000 (c)
31,488,655
(a) The General Fund has made the following advances to the Community
Development Commission:
Administrative and construction costs $14,140,350
Capital project costs 2,475,209
Revolving credit 5,705,184
Red Onion loan costs 1,148,912
'
Total $23,469,655
The outstanding advances are comprised of original principal of $18,890,497 and
accumulated interest of $4,579,158 that has been included in deferred revenue in
the fund financial statements. The advances accrue interest at 10.5% per annum
and will be paid off in 2011.
In July 2000, General Fund $5,600,000 line
(b) the extended a of credit to the
Community Development Commission.. The Commission withdrew $600,000 in
fiscal year ended June 30, 2003 and the remaining $5,000,000 in fiscal year ended
June 30, 2004. The line of credit accrues interest at the LAIF interest rate plus
2% and has no stipulated repayment date. In June 2005, the General Fund
advanced $1,800,000 to the Community Development Commission Capital
Projects Fund. The advance accrues interest at 5% per annum and is due in June
2006. In June 2005, the City advanced $600,000 to the CDC Capital Projects
Fund. The advance accrues interest at 5% and is due June 2006.
(c) The General Fund advanced $19,000 to the Parks Capital Projects Fund. The
advances does not accrue interest and has no stipulated repayment date.
1
47
CITY OF WEST COVINA
Notes to the Basic Financial Statements
(Continued)
(5) Notes and Loans Receivable
As of June 30, 2005, the following notes and loans receivable were outstanding:
Housing rehabilitation
BKK settlement
First time home buyers
Housing preservation program
West Covina Lakes Associates
Lark Ellen Towers
Executive Lodge Apartments
West Covina Senior Villas
Clippinger note
Other Community Development Commission loans
Total,
$ 5,116,393
1,425,000
1,550;203
1,746,998
2,787,836
5,519,123
6,232,328
3,824,999
1,308,096
1,298,893
30,809,869
The City has made several housing rehabilitation loans totaling $5,116,393 to qualified
applicants using Community Development Block Grants and housing set -aside funds.
These loans bear interest up to 5% and are repaid when title to the property changes.
The City made a loan of $2,686,855 to BKK Corporation in January 2004 to provide
funding for environment liability insurance. The loan will be repaid with anticipated
environmental settlement proceeds. The -loan went into default during the fiscal year
ended June 30, 2005 and the note was written down to $1,425,000, the appraised value of
the property securing the loan.
The Commission has made loans to first-time home buyers totaling $1,550,203. Loans
are secured by second trust deeds and bear interest at 5%. Principal and interest are
deferred for five years and are due monthly in years 6 through 30. The Commission has
made 89 individual loans ranging from $10,000 to $25,000.
The Commission has also made housing preservation loans totaling $1,746,998 to
qualified applicants using housing set -aside funds. Principal and interest are deferred for
ten years; after the tenth year loans bear interest at 5%. Loans are repaid after the tenth
year or when title to the property changes. The Commission has made 192 individual
loans ranging from $4,000 to $10,050.
In August 1988, the Commission loaned $1,155,000 to the. West Covina Lakes
Associates. The loan is secured by a deed of trust and is payable upon sale of the
property. The loan accrues interest at 9% per annum. The outstanding principal and
accrued interest at June 30, 2005 is $2,787,836. Subsequent to June 30, 2005, the
Commission sold this note and related interests in the Lakes property to the West Covina
Lakes Associates for a total of $1.7 million.
1
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CITY OF WEST COVINA
Notes to the Basic Financial Statements
(Continued) .
1 (5) Notes and Loans Receivable, (Continued)
In May 1997, the: Commission loaned $4,270,000 to Lark Ellen Towers. The loan is
secured by a deed of trust. The loan accrues interest at 3% per annum and requires
annual payments equal to the maximum of $35,000 or 50% of net profits earned by the
project. The outstanding principal and accrued interest at June 30, 2005 is $5,519,123.
In April 1998, the Commission loaned $5,622,300 to Executive Lodge Apartments
Limited Partnership (Promenade Apartments project). The loan is secured by a deed of
trust. The loan accrues interest at 3% per annum. The outstanding principal and accrued
' interest at June 30, 2005 is $6,232,328.
In May 2002, the Commission loaned $4,250,000 to West Covina Senior Villas, LLC.
1 The loan is secured by a deed of trust. The loan does not accrue interest. The note
requires annual payments of $141,667 through May 2032 that are forgiven by the City
unless the borrower defaults on the agreement. The outstanding principal at June 30,
2005 is $3,824,999.
1 The Commission provided a loan to Clippinger that bears interest of 7% and is
collateralized by a promissory note and sales tax guarantees. The outstanding principal
and accrued interest at June 30, 2005 is $1,308,096.
(6) Assessments Receivable
As of June 30, 2005, the following assessments receivable were outstanding:
1996 Special Tax Bonds $43,350,000
Business Improvement District 61,804
Total 43,411.804
In connection with the Commission's issuance of its $51,220,000 1.996 Special Tax
Bonds, the Commission has recorded $43,350,000 in assessments receivable and deferred
revenue. These amounts will be reduced as the principal on the bonds mature.
During fiscal year ended June 30, 1994, the City established the West Covina Auto Plaza
' Business Improvement District in order to levy assessments within the Auto Plaza area
for the purpose of constructing and maintaining an electronic reader board. The
Commission purchased rights to the assessments and has recorded $61,804 in
assessments receivable and deferred revenue.
1
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49
CITY OF WEST COVINA
Notes to the Basic Financial Statements
(Continued)
(7) Land Held for Resale
Land held for resale is comprised of the following at June 30, 2005:
Auto Plaza Expansion $ 326,633
Eastland Renovation 3,024,435
Citrus Plaza - Eastland Theater 603,084
Citrus Plaza - Scofield Property 4,040,000
BKK Project 3,250,431
Total land held for resale 11.244,583
(8) Capital Assets
Capital asset activity for the year ended June 30, 2005 is as follows:
Balance at Balance at
June 30, 2004 Additions Deletions June 30 2005
Governmental activities:
Buildings
Improvements other
than buildings
Equipment and vehicles
Infrastructure — Pavement
Infrastructure — Other
Total cost of
depreciable assets
Less accumulated
depreciation:
Buildings
Improvements other
than buildings
Equipment and vehicles
Infrastructure — Pavement
Infrastructure — Other
Total accumulated
depreciation.
Net depreciable
assets
$ 12,216,052 34,109
29,769,906 2,041,560
14,448,335 1,136,508
156,443,087 1,593,770
15,684,097 1,042,942
12,250,161
31,811,466
(241,011) 15,343,832
158,036,857
16,727,039
228,561,477 5,848,889 24( 1,011) 234,169,355
(4,011,343)
(143,096)
- (4,154,439)
(13,154,125)
(604,666)
- (13,758,791)
(7,504,760)
(1,486,797)
304,669 (8,686,888)
(45,045,644)
(6,149,855)
- (51,195,499)
(12,809,856)
(230,199)
- (13,040,055)
(82,525,728) 8 614 613) 304,669 (90,835,672)
146,035,749 (2,765,724) 631658 143,333,683
50
1
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1
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1
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1
CITY OF WEST COVINA
Notes to the Basic Financial Statements
(Continued)
(8) Capital Assets, (Continued)
Capital assets not depreciated:
Land
Rights of way
Construction in progress
Capital assets, net
Balance at Balance at
June 30, 2004 Additions Deletions June 30, 2005
53,730,967
- (22,383) 53,708,584
14,3765498
- - 14,3765498
4,866,621
4,781,553 (4,736,498I 4,911,676
219,009,835
2,015,829 4 695 223 216.330,441
Depreciation expense was charged in the following functions in the Statement of
Activities:
General government $ 59,705
Public safety 1,317,571
Public works 6,870,793
Community services 176,864
Community development 189,680
8 614 613
Balance at Balance at
Business -type activities:
Equipment and machinery
Total cost of depreciable
assets
Less accumulated depreciation:
Equipment and machinery
Total accumulated
depreciation
Capital assets, net
June 30, 2004 Additions Deletions June 30, 2005
$1,218,874
15,275
50( 2,200)
731,949
1,218,874
15,275
50( 2,200)
731,949
(759,999)3(
8,787)
203,774
59( 5,012)
(759,999)(38,787)
203,774
59( 5.012)
458 875
Q,51 2
29( 8 426)
136.937
51
CITY OF WEST COVINA
Notes to the Basic Financial Statements
(Continued)
(8) Capital Assets, (Continued)
Depreciation expense was charged in the following programs of the primary
government:
Computer service 38 787
(9) Long -Term Liabilities
Changes in long-term liabilities for the year ended June 30, 2005 are as follows:
Balance at
Balance at
Due within
Due in more
Governmental activities:
June 30, 2004
Additions
Deletions
June 30.2005
one year
than one year
Lease Revenue Bonds:
1988 Lease -Revenue Bonds
$ 6,215,000
-
(230,000)
5,985,000
245,000
5,740,000
2002 Lease Revenue Bonds
21,895,000
-
-
.21,895,000
-
21,895,000
2003 Lease Revenue Bonds
3,625,000
-
(125,000)
3,500,000
130,000
3,370,000
2004 Lease Revenue Bonds
-
13.500,000
-
13,500,000
-
13.500.000
Total Lease Revenue Bonds
31,735,000
13.500,000
355.000
44,880,000
375,000
44.505.000
1096 Special Tax Bonds
44,255,000
-
90( 5,000)
43.350 000
1.005,000
42.345.000
Tax Allocation Bonds:
1999 Tax Allocation Bonds
3,940,000
-
(5,000)
3,935,000
5,000
3,930,000
2002 Tax Allocation Bonds
12.115,000
-
(205,000)
11.910.000
210,000
11,700.000
Total Tax Allocation Bonds
16,055,000
-
(210,000
15,845.000
215,000
15.630.000
Housing Set -Aside Bonds:
1998 Housing Set -Aside Bonds
5,530,000
-
(140,000)
5,390,000
155,000
5,235,000
2001 Housing Set -Aside Bonds
10,570,000
-
(305,000
10,265.000
310.000
9,955.000
Total Housing Bonds
16,100.000
-
(445,000
15.655.000
465.000
15.190,000
Compensated absences payable
3,924,048
729,842
(660,111)
3,993,779
671,234
3,322,545
Claims and judgments payable
4,816,938
2,160,337
(1,360,962)
5,616,313
2,518,847
3,097,466
Capital lease obligations
1,058,092
-
(238,361)
819,731 •
247,342
572,389
Notes payable
1,503,339
-
(47,103)
1,456,236
. 49,841
1,406,395
Developer agreement payable
15,044,166
2,075,349
(1,055,354)
16,064,161
-
16,064,161
Due to the County of
Los Angeles
4.466,839
766,777
-
5.233.616
-
5.233,616
Total -long-term liabilities
138.958.422
.14,2
)
1���
147.366.572
52
CITY OF WEST COVINA
Notes to the Basic Financial Statements
(Continued)
(9) Long -Term Liabilities, (Continued)
Changes in long-term liabilities for business -type activities for the year ended June 30,
' 2005 are as follows:
Balance at Balance at Due within Due in more
Business -type activities: June 30, 2104 Additions Deletions June 30: 2005 one vear than one vear
Compensated absences payable $ 554 22 17.477) 24,708
(10) Lease Revenue Bonds
1988 Lease Revenue Refunding Bonds (The Lake Public Parking Project)
' In 1988, the Community Development Commission issued $7,750,000 of Lease Revenue
Bonds for the purpose of constructing two multi -story parking structures. The bonds
consist of $7,350,000 of current interest bonds and $400,000 of compound interest bonds.
The bonds carried interest rates of 6.625% and 7.50%, respectively, until January 31,
1994. On February 1, 1994, the bonds were converted to variable rate bonds. The interest
rates vary based on the prevailing financial market conditions beginning on February 1,
1994, to a maximum of 12% over the term of the bonds and are payable monthly. The
bonds are subject to mandatory redemption beginning August 1, 1994, and annually
thereafter through August 1, 2018.
The bonds are secured by the facilities and lease rentals to be received pursuant to a lease
agreement between the Commission and the City. At June 30, 2005, the outstanding
_ balance is $5,985,000.
2002 Lease Revenue Refunding Bonds, Series A and B (Public Facilities Project)
On June 25, 2002, the City issued $2,690,000 of Taxable Variable Rate Lease Revenue
Refunding Bonds, 2002 Series A and $19,205,000 Variable Rate Lease Revenue
Refunding Bonds, 2002 Series B to provide financing for the advance refunding of the
City's 1997 Refunding Certificates of Participation.
The interest of the Series A bonds is payable August 1, 2002. The Series A bonds bear
' interest at a variable interest rate determined weekly and after the fixed rate conversion
date, at fixed interest rates. The principal of the Series A bonds is due annually beginning
on September 1, 2006, in amounts ranging from $40,000 to $165,000. The Series A
bonds mature on September 1, 2035.
1 53
CITY OF WEST COVINA
Notes to the Basic Financial Statements
(Continued)
(10) Lease Revenue Bonds, (Continued)
The Series B bonds initially bear interest at 2.5% per annum and, during the initial rate
period, interest on the Series B bonds is payable on March 1, 2003 and semiannually
thereafter on September 1 and March 1 of each year until September 1, 2005. Thereafter,
interest with respect to the Series B bonds is payable on October 1, 2005 and each month
thereafter at a variable rate, and after the fixed rate conversion date at the fixed rates.
Principal on the Series B bonds is due annually beginning on September 1, 2006, in
amounts ranging from $405000 to $950,000. The Series B bonds mature on September
.1, 2035.
The Authority is� authorized to issue Variable Rate Lease Revenue Refunding Bonds,
2005 Series C (Series C Bonds) in a principal amount not to exceed $3,190,000. The
Series C Bonds will only be issued for the purpose of redeeming the Series A bonds.
The bonds of each series are payable from lease payments to be made by the City to the
Authority as rental for certain public facilities consisting of a portion of the City's Civic
Center Complex. The Series C bonds are also secured by the lease payments under the
Lease. The Series A bonds are subject to mandatory redemption on or after September 1,
2005 from the proceeds of the Series C bonds if and when issued. At June 30, 2005, the
outstanding balance is $21,895,000.
2003 Lease Revenue Bonds, Series A (Community Center Proiect
On February 19, 2003, the City issued $3,625,000 of Lease Revenue Bonds to provide
financing for the construction of a community center. The bonds mature annually through
August 1, 2023 in amounts ranging from $125,000 to $270,000, with interest rates that
vary beginning on August 1, 2004 at 1.60% to a maximum of 5.375% over the term of
the bonds. Interest is payable semiannually on February 1 and August 1 of each year.
The bonds are payable from lease payments as rental for certain public facilities. The
reserve requirement at June 30, 2005 of $287,345 was fully funded. At June 30, 2005, the
outstanding balance is $3,500,000.
2004 Lease Revenue Bonds, Series A and B (Golf Course Project)
In August 2004, the City issued $8,165,000 of Variable Rate Lease Revenue Bonds,
Series A and $5,335,000 of Variable Rate Lease Revenue Bonds, Series B to provide
financing for grading and infrastructure relating to the City's proposed municipal golf
course. The Series A bonds mature annually through May 1, 2034 in amounts ranging
from $45,000 to $535,000. The Series B bonds mature annually through May 1, 2034 in
amounts ranging from $45,000 and $350,000. The Series A and B bonds bear interest at
a variable rate reset weekly and at a fixed rate after the fixed rate conversion date. Prior
54
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CITY OF WEST COVINA
Notes to the Basic Financial Statements
(Continued)
(10) Lease Revenue Bonds, (Continued)
to the fixed rate conversion date, interest is payable on the first business day of each
month. Following the fixed rate conversion date, interest is payable on May 1 and
November 1 of each year.
The bonds are payable from lease payments as rental for certain public facilities. At June
30, 2005, the outstanding balance is $13,500,000.
The annual debt service requirements on the Lease Revenue Bonds are as follows:
1998 Lease
2002 Lease
2003 Lease
2004 Lease
Year Ending
Revenue Bonds
Revenue Bonds
Revenue Bonds
Revenue Bonds
June 30
Principal
Interest
Principal
Interest
Principal
Interest
Principal
Interest
2006
$ 245,000
145,436
-
549,565
130,000
157,345
-
338,850
2007
265,000
139,482
.445,000
549,565
130,000
154,615
-
338,850
2008
290,000
133,043
455,000
538,395
135,000
151,230
-
338,850
2009
310,000
125,996
475,000
526,975
140,000
147,100
90,000
338,850
2010
335,000
118,463
495,000
515,052
140,000
142,235
200,000
336,591
2011-2015
2,135,000
455,868
2,680,000
2,383,873
810,000
613,206
1,715,000
1,608,408
2016-2020
2,405,000
151,630
3,150,000
2,024,943
1,005,000
398,503
2,145,000
1,461,071
2021-2025
-
-
3,690,000
1,603,388
1,010,000
110,648
2,680,000
1,277,339
2026-2030
-
-
4,325,000
1,109,546
-
-
3,365,000
1,046,796
2031-2035
-
-
5,075,000
530,489
-
-
3,305,000
632,771
2036
1,115,000
27,987
5 9 5 01�2 96 y18 21 0 0 1 35 778 3 500.00� 1 $74�$ 2 13.500.000 71
(11) 1996 Special Tax Bonds (The Fashion Plaza Project)
In 1996, the Community Development Commission issued Special Tax Refunding Bonds
comprised of $9,980,000 of serial bonds and $41,240,000 of term bonds. The serial bonds
mature annually through September 1, 2006, in amounts ranging from $635,000 to
$1,785,000, with interest rates that vary beginning on August 1, 1997 at 4.0% to a
maximum of 2.5% over the term of the bonds. The term bonds bear interest at a rate from
5.75% to 6.0% payable semiannually and are due September 1, 2002. The term bonds are
not subject to optional redemption; mandatory redemption begins September 1, 2007,
then annually thereafter through September 1, 2022. Interest is payable semiannually on
March 1 and September 1 of each year.
55
CITY OF WEST COVINA '
Notes to the Basic Financial Statements .
(Continued)
(11) 1996 Special Tax Bonds (The Fashion Plaza Project), (Continued)
The bonds are secured by and payable from a portion of the revenues derived from an
annual special tax. to be levied against all taxable real property within the Special
Assessment District. In addition, the Commission has pledged certain other incremental ,
revenues generated within the District consisting of property taxes and sales taxes.
The required reserve at June 30, 2005 of $4,799,980 was- fully funded. The outstanding
principal balance of the bonds at June 30, 2005 is $43,350,000,.
Debt service requirements on these bonds at June 30, 2005 is as follows:
'
Year Ending
June 30
Principal
Interest
'
2006
$ 1,005,000
2,548,453
2007
1,105,000
2,493,694
2008
1,200,000
2,430,188
2009
1,295,000
21358,456 -
'
2010
1,390,000
2,281,262
2011-2015
9,230,000
9,953,100
2016-2020
15,215,000
6,310,950
'
2021-2023
12,910,000
1,233,600
Totals
$43,350,000
29z609.703
,
(12) Tax Allocation Bonds
1999 Tax Allocation Bonds
On November 1, 1999, the Community Development Commission issued $3,945,000 of '
Tax Allocation bonds. The proceeds of the bonds were used to fund a loan to the
Commission, which was used by the Commission to finance certain redevelopment
projects within the West Covina Merged Project Area. The bonds are payable from and
secured by certain tax revenues payable to the Commission. The interest on the 1999
Bonds is payable monthly at an adjustable interest rate with a maximum of 12%.
Principal is due annually beginning on November 1, 2003, in amounts ranging from '
$5,000 to $165,000 through November 1, 2029.
The Commission has a letter of credit to pay the principal and interest due on the bonds
to the extent that other funds are not available. The letter of credit expires on November 1
17, 2007. The outstanding principal balance of the bonds at June 30, 2005 is $3,935,000.
56 '
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J
CITY OF WEST COVINA
Notes to the Basic Financial Statements
(Continued)
(12) Tax Allocation Bonds, (Continued)
2002 Tax Allocation Refunding Bonds
On June 4, 2002 the Community Development Commission issued $12,200,000 of Tax
Allocation Refunding Bonds. The proceeds of the Bonds were used to prepay the
outstanding 1993 Tax Allocation Bonds. The 2002 Bonds are payable from tax revenues
of the Commission. The interest on the bonds is payable semiannually on September 1
and March 1 of each year, commencing March 1, 2003. The interest rate of the bonds
ranges from 1.75% to 5.10%. The principal of the bonds is due annually beginning on
September 1, 2003, in amounts ranging from $85,000 to $800,000 and maturing on
September 1, 2025.
At June 30, 2005 the. required reserve of $987,833 was fully funded. The principal
balance of outstanding bonds at June 30, 2005 is $11,910,000.
The annual debt service requirements on the tax allocation bonds are as follows:
Year Ending .
1999 Tax Allocation Bonds
2002 Tax Allocation Bonds
June 30
Principal
Interest
Principal
Interest
2006
$ 5,000
134,577
210,000
533,420
2007
5,000
134,406
215,000
527,839
2008
5,000
134,235
470,000
517,833
2009
5,000
134,064
485,000
502,538
2010
115,000
133,893
500,000
485,293
2011-2015
680,000
605,340
2,805,000
2,114,090
2016-2020
830,000
478,287
3,470,000
1,414,516
2021-2025
1,025,000
324,558
3,105,000
546,083
2026-2030
1,265,000
132,696
650,000
16,575
Totals
112L5 000
2.2I2.056
11,910,000
6.658.187
1998 Housing Set -Aside Tax Allocation Bonds
In 1998, the Community Development Commission issued $6,145,000 of Series A Tax
Allocation Bonds and $1,200,000 of taxable Series. B Tax Allocation Bonds to provide
funds for the acquisition and rehabilitation of a multi -family housing project. The bonds
mature annually through September 1, 2025 -in amounts ranging from $20,000 to
$325,000, with interest rates varying from 4.5% to 7.0%. Interest is payable semiannually
on March 1, and September 1, of each year.
57
CITY OF WEST COVINA
Notes to the Basic Financial Statements
(Continued)
(12) Tax Allocation Bonds, (Continued)
The bonds are payable solely from and secured by a pledge of that portion of the tax
increment revenues receivable by the Commission with respect to the merged
redevelopment project area and are required to be deposited into the Commission's Low
and Moderate Income Housing Fund.
At June 30, 2005 the required reserve of $440,455 was fully funded. The principal
balance of outstanding bonds at June 30, 2005 is $5,390,000.
2001 HousingSet-AsideTax Allocation Bonds
On December 1, 2001 the Community Development Commission issued $11,275,000 of
Housing Set -Aside Tax Allocation Bonds. The proceeds of the bonds were used to fund a
grant for the acquisition and development of a senior housing apartment complex and
finance the implementation of the Commission's low and moderate income housing
programs. The bonds are payable from and secured by certain tax increment revenues.
The interest on the bonds is payable on March 1 and September 1 of each year,
commencing March 1, 2002. The interest rate of the bonds ranges from 2.25% to 5.00%.
The principal of the bonds is due annually beginning on September 1, 2002, in amounts
ranging from $20,000 to $600,000. The bonds mature on September 1, 2031. The bonds
are subject to optional and mandatory redemption provision.
At June 30, 2005 the required reserve of $770,615 was fully funded. The principal
balance of outstanding bonds at June 30, 2005 is $10,265,000.
The annual requirements to amortize housing tax allocation bonds as of June 30, 2005 are
as follows:,
Year Ending
1998 Housing
Bonds
2001 Housing Bonds
June 30
Principal
Interest
Principal
Interest
2006
$ 145,000
290,229
310,000
460,498
2007
150,000
283,093
320,000
450,648
2008
165,000
275,455
330,000
439,634
2009
170,000
267,247
345,000
427,430
2010
175,000
258,670
355,000
414,039
2011-2015
1,040,000
1,141,252
2,010,000
1,833,389
2016-2020
1,350,000
818,632
2,505,000
1,324,595
2021-2025
1,775,000
381,951
1,930,000
620,419
2026-2030
420,000
11,938
1,500,000
389,125
2031-2032
-
-
660,000
20,500
Totals $5,390,000 3.728,467 10.265,000 6.380.277
58 ,
' CITY OF WEST COVINA
Notes to the Basic Financial Statements
(Continued)
' (13) Claims and Judgments
' The City is exposed to various risks of loss related to its operation, including losses
associated with errors and omissions, injuries to employees and members of the public.
The City's Internal Service Self Insurance Fund is used to account for and finance its
' uninsured risks of loss. The City purchases commercial insurance for general liability
claims that covers claims in excess of the City's self -insured retention of $1,000,000 per
occurrence and provides general liability coverage up to $10,000,000 per claim.
The City of West Covina purchases commercial workers' compensation that covers
claims in excess of the City's self insured retention of $1,000,000 and provides employer
liability coverage up to $5,000,000 in addition to workers' compensation statutory limits.
Claims for general liability and worker's compensation did not exceed the self insurance
retention level in 2003, 2004 and 2005.
n
I
The claims and judgments liability reported in the Internal Service Self Insurance Fund is
based on the requirements of Governmental Accounting Standards Board Statement No.
10, which requires that a liability for claims and judgments be reported if information
prior to the issuance of the financial statements indicates that it is probable that a liability
has been incurred at the date of the financial statements and the amount of loss can be
reasonably estimated. As of June 30, 2005, claims and judgments payable, including
estimated claims for incurred but not reported claims, amounted to $5,616,313.
Changes in the claims and judgments payable amounts in fiscal years 2004 and 2005 for
the Self Insurance Fund are as follows:
Beginning of
Fiscal Year
Liability
2003-04 $5,860,697
2004-05 4,816,938
(14) Capital Leases Obligations
Current Year
Claims and
Changes in
Claim
Balance at
Estimates
Payments
Fiscal Year End
(206,414)
(837,345)
4,816,938
2,160,337
(1,360,962)
5,616,313
The following represents governmental activity obligation under capital leases:
Fire Tnicks
In February 1999, the City entered into a lease agreement for the acquisition of a fire
truck. This lease agreement qualifies as a capital lease for accounting purposes (title
transfers at end of the lease) and, therefore, has been recorded at the present value of the
future minimum lease payments as of the date of inception. The fire truck acquired
during the fiscal year under this lease agreement is recorded at its acquisition cost of
$636,483.
1
59
CITY OF WEST COVINA '
Notes to the Basic Financial Statements
Continued ,
i
(14) Capital Leases Obligations, (Continued)
The financing was obtained from Muni Group for $636,483 with an interest rate of 8.61%
and annual payments of $82,148 through the end of the lease (June 2009). The
outstanding balance at June 30, 2005 is $291,765.
'
In October 2002, the City entered into a lease' agreement for the acquisition of a fire
truck. This lease agreement qualifies as a. capital lease for accounting purposes (title
transfer at end of lease) and, therefore, has been recorded at the present value of the
r
future minimum lease payments as of the date of inception. The fire truck acquired
during the fiscal year under this lease agreement is recorded at its acquisition cost of
$348,192.
'
The financing was obtained from Sun Trust for $348,192 with an interest rate of 3.66%
and quarterly payments of $14,153 through the end of the lease (October 2009). The
outstanding balance at June 30, 2005 is $233,896.
'
Eden Software
into lease for Eden
,
In June 2003, the City entered a agreement the acquisition of
computer software. This lease agreement qualifies as a capital lease for accounting
purposes (title transfers at end of the lease) and, therefore, has been recorded at the
present value of the future minimum lease payments as of the date of inception. The
software acquired during the fiscal year under this lease agreement is recorded at its
acquisition cost of $256,000.
r
The financing was obtained from Sun Trust for $256,000 with an interest rate of 2.67%
and quarterly payments of $20,488 through the end of the lease (June 2006). The
outstanding balance at June 30, 2005 is $80,602.
,
Ambulance
In June 2004, the City entered into a lease agreement for the acquisition of four
,
ambulances. This lease agreement qualifies as a capital lease for accounting purposes
(title transfers at the end of the lease) and, therefore, has been recorded at the present
value of the future minimum lease payments as of the date of inception. The ambulance
'
acquired during the fiscal year under this lease agreement is recorded at their acquisition
cost of $261,792.
The financing was obtained from SunTrust Leasing Corporation for $261,792 with an
'
interest rate of 3.76% and quarterly payments of $14,489 through the end of the lease
(June 2009). The outstanding balance at June 30, 2005 is $213,468.
r
60 1
CITY OF WEST COVINA
Notes to the Basic Financial Statements
(Continued)
(14) Cpital Leases Obligations, (Continued)
The calculation of the present value of the future lease payments for obligations under
' capital leases is as follows:
Year ending 1999 2002 Eden
June 30: Fire Truck Fire Truck Software Ambulances Total
2006 $ 82,148 56,612 81,952 57,956 278,668
2007 82,148 56,612 - 57,956 196,716
1 2008 82,148 56,612 _ 57,956 196,716
2009 82,148 56,612 57,956 196,716
2010 - 28,306 - - 28,306
Subtotal 328,592 254,754 81,952 231,824 897,122
Less amount representing
interest (36,827) (20,858) (1,350) (18,356) (77,391)
Present value of future
lease payments 291 765 233,896 80,602 213.468 819,731
(15) Notes Payable
' Chamber of Commerce Note
In June 1996, the City,entered into a note agreement for $135,670 to provide funding for
the purchase of certain real property. The note accrues interest at 5.78%. Principal and
interest payments of $7,135 are due semi-annually through June 1, 2011. The note is
payable from the revenues of the general fund. At June 30, 2005, the outstanding balance
is $71,665.
Butler Note
1 On January 24, 2002, the West Covina Public Financing Authority entered into a note for
$248,000 to finance the purchase of certain real property. The interest rate is adjusted on
each thirty-six month anniversary of the effective date, and shall be that rate which is
0.5% in excess of the one year United States Treasury Note in existence on the date of
such adjustment. The principal is due on December 24, 2011. The note is payable from
the revenues of the general fund. At June 30, 2005, the outstanding balance is $248,000.
' 61
CITY OF WEST COVINA
Notes to the Basic Financial Statements
(Continued)
(15) Notes Payable, (Continued)
Valencia Note
On May 1, 2003, the City entered into a note agreement for $1,215,000 to finance the
purchase of certain real property. The initial interest rate of 5.31% is adjusted on the
eighteenth month anniversary of the effective date, and shall be at that rate which is 0.5%
in excess of the two year United States Treasury Bill in existence on the date of such
adjustment. Principal and interest payments are due monthly through 2023. The note is
payable from the revenues of the general fund. The outstanding balance at June 30, 2005
is $1,136,571.
The annual debt service requirements on the notes are as follows:
Year
Chamber of
,
Ending
Commerce
Butler Note
Valencia Note
June 30
Principal
Interest
Principal Interest
Principal
Interest
2006
$10,331
3,940
- 6,744
39,324
59,574
'
2007
10,928
3,343
- 6,744
41,611
57,431
2008
11,560
2,711
- 6,744
44,023
55,163
2009
12,228
2,042
- 6,744
46,565
52,764
2010
12,935
1,336
- 6,744
49,247
50,227
2011-2015
13,683
588
248,000 16,860
291,846
207,684
2016-2020
-
-
- -
384,481
118,649
,
2021-2023
-
-
- -
239,474
18,600
Totals
71665
13.960
248,000 50,580
1136,571
620.092
(16) Developer Agreement Payable
Outstanding
at June 30, 2005
The Commission entered into an agreement with a developer to
share certain future tax revenues generated by the Community
Facilities District. Since 1992, the developer's share of revenues
totaled $28,855,203. The City has made payments to the
developer totaling $12,791,042. $16,064,161
1
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CITY OF WEST COVINA
' Notes to the Basic Financial Statements
(Continued)
(17) Due to the County of Los Angeles
Based on an agreement dated June 19, 1990 between the Commission and the County,
' during the first twenty years beginning in 1990, the Commission will retain from the
County 50% of the County portion of tax increment. Per the agreement, the Commission
must repay all amounts withheld from the County beginning in 2011. Repayment terms
have not yet been established. Interest does not accrue on this obligation for the first
twenty years and is 7% thereafter. The balance at June 30, 2005 is $5,233,616.
(18) Defeasance of Debt
The City of West Covina defeased certain certificates of participation and revenue bonds
by placing the proceeds of new certificates of participation and revenue bonds in an
' irrevocable trust to provide for all future debt service payments on the old debt issues.
Accordingly, the trust account assets and the liability for the defeased debt issues are not
included in the City's financial statements. As of June 30, 2005, the following
' outstanding debt issues are considered defeased:
1997 Civic Center Refunding Certificates of Participation $16,210,000
(19) Accumulated Fund Deficits
'
The following funds reported deficits in fund balances/net assets as of June 30, 2005:
Deficit Balance
Debt Service Funds:
Community Development Commission
$13,296,682
Special Revenue Funds:
Traffic Congestions
15,711
Grants
1,097,025
Management's explanation for the resolution of significant accumulated fund deficits are
summarized as follows:
' Community Development Commission Debt Service Fund:
The deficit fund balance of $13,296,682 is a result of recording $25,943,474 of advances
to the General Fund in accordance with GASB Statement No. 34. Prior to implementation
of the statement, advances payable were recorded in the General Long -Term Debt
Account Group. The advances are scheduled to be repaid to the General Fund through
2018 from the future tax increment revenues.
1 63
fl
CITY OF WEST COVINA
Notes to the Basic Financial Statements
(Continued)
(19) Accumulated Fund Deficits, (Continued)
Grants Fund:
The deficit in fund balance of $1,097,025 is a result of $2,302,308 of deferred revenue
that has been recorded for receivables that are earned but not available within the
availability period of 60 days.
(20) Defined Benefit Pension Plan
The City of West Covina contributes to the California Public Employees
Retirement System (PERS), an agent multiple -employer public employee defined
benefit pension plan. PERS provides retirement, disability benefits, and death
benefits to plan members and beneficiaries. PERS acts as a common investment
and administrative agent for participating public entities within the State of
California. Copies of PERS' annual financial report may be obtained from its
executive office at 400 "P" Street, Sacramento, California 95814.
Participants are required to contribute 7% of their annual covered salary for
miscellaneous employees and 9% for safety employees. The City makes the
contributions required of City employees on their behalf and for their account.
Benefit provisions and all other requirements are established by state statute and
City contracts with employee bargaining groups.
Under GASB 27, an employer reports an annual pension cost (APC) equal to the
annual required contribution (ARC) plus an adjustment for the cumulative
difference between the APC and the employer's actual plan contributions for the
year. The cumulative difference is called the net pension obligation (NPO). The
ARC for the period July 1, 2004 to June 30, 2005 has been determined by an
actuarial valuation of the plan as of June 30, 2002. The contribution rate
indicated for the period is 27.906% of payroll for the safety plan and 0.00% of
payroll for the miscellaneous plan. In order to calculate the dollar value of the
ARC for inclusion in financial statements prepared as of June 30, 2005, this
contribution rate would be multiplied by the payroll of covered employees that
was actually paid during the period July 1, 2004 to June 30, 2005.
A summary of principle assumptions and methods used to determine the ARC is
shown below.
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CITY OF WEST COVINA
Notes to the Basic Financial Statements
(Continued)
(20) Defined Benefit Pension Plan, (Continued)
Valuation Date
Actuarial Cost Method
Amortization Method
Average Remaining
Period
Asset Valuation
Method
Actuarial Assumptions:
Investment Rate of
Return
Projected Salary
Increases
Inflation
Payroll Growth
Individual Salary
Growth
Safe
June 30, 2002
Entry Age Actuarial Cost
Method
Level Percent of Payroll
32 Years as of the
Valuation Date
15 Year Smoothed Market
7.75% (net of
administrative expenses)
3.25% to 13.15%
depending on Age, Service,
and type of employment
3.00%
3.25%
A merit scale varying by
duration of employment
coupled with an assumed
annual inflation component
of 3.0% and an annual
production growth of
0.25%.
Miscellaneous
June A, 2UU2
Entry Age Actuarial Cost
Method
Level Percent of Payroll
32 Years as of the
Valuation Date
15 Year Smoothed Market
7.75% (net of
administrative expenses)
3.25% to 14.45%
depending on Age, Service,
and type of employment
3.00%
3.25%
A merit scale varying by
duration of employment
coupled with an assumed
annual inflation component
of 3.0% 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 rolling period, which results in an amortization of 10%
of unamortized gains and losses each year. If the plan's accrued liability exceeds the
actuarial value of plan assets, then the amortization period may not be lower than the
payment calculated over a 30 year amortization period.
For the safety plan, the unfunded actuarial liability is amortized over a period ending
June 30, 2034. For the miscellaneous plan, the City was overfunded for the year ended
June 30, 2004. Amortization periods are not determined for overfunded plans.
The Schedule of Funding Progress below shows the recent history of the actuarial value
of assets, actuarial accrued liability, their relationship, and the relationship of the
unfunded accrued liability to payroll.
7
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65
CITY OF WEST COVINA
Notes to the Basic Financial Statements
(Continued)
(20) Defined Benefit Pension Plan, (Continued)
Required Supplementary Information —
Safety (in thousands)
Entry Age
Unfunded
Normal
Actuarial
Liability/
Annual
UAAL
Valuation
Accrued
Value
(Excess
Funded
Covered
As a % of
Date
Liabilily
of Assets
Assets)
Status
Payroll
Payroll
6/30/02
$153,083
140,849
12,234
92.0%
14,308
85.5%
6/30/03
165,066
142,773
22,293
86.5%
15,622
142.7%
6/30/04
181,590
150,395
31,195
82.8%
16,893
184.7%
Required Supplementary Information —
Miscellaneous (in thousands)
Entry Age
Unfunded
Normal
Actuarial
Liability/
Annual
UAAL
Valuation
Accrued
Value
(Excess
Funded
Covered
. As a % of
Date
Liabilily
of Assets
Assets)
Status
Payroll
_ Payroll
6/30/02
$62,692
73,512
(10,820)
117.3%
10,253
(105.5)%
6/30/03
70,296
72,755
(2,459)
103.5%
' 11,736
(21.0)%
6/30/04
74,196
75,121
(925)
101.2%
11,630
(8.0)%
Three -Year Trend Information
Annual Pension Cost
(Employer Contribution)
Fiscal
Percentage
of
Net Pension
Year
Safejy
Miscellaneous
APC Contributed
Obligation
6/30/03
$1,430,661
-
100%
-
6/30/04
2,281,792
-
100%
-
6/30/05
4,285,798
818,198
100%
-
21) Defined Contribution Plan
The City provides pension benefits for all of its temporary and part-time employees
through a defined contribution plan. In a defined contribution plan, benefits depend solely
on amounts contributed to the plan plus investment earnings. The plan is administered as
part of the City's deferred compensation plan. All non -regular employees are eligible to
participate from the date of employment.
66
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1
CITY OF WEST COVINA
Notes to the Basic Financial Statements
(Continued)
(21) Defined Contribution Plan, (Continued)
Federal legislation requires contributions of at least 7.5% to a retirement plan. The plan is
fully funded by employee contributions, except for minor administrative costs, which are
paid by the City.
For the year ended June 30, 2005, the City's payroll covered by the plan was $1,430,942.
The employees contributed $107,321 (7.5% of covered payroll).
(22) Post -Retirement Health Care Benefits
Post -Retirement Benefits
Employees who retire from the City are eligible to receive health care benefits covering
themselves and any qualified family members. The City pays varying amounts per month
for each retiree: $48 for general employees, and up to $400 for sworn police and fire
personnel towards the premiums charged under a health benefit plan administered by the
Public Employees' Retirement System (PERS) in which the individual is able to select,
on an annual basis, insurance from a number of insurance carriers. City participation in
retiree medical will increase in future years to $64 for miscellaneous employees effective
January 1, 2006. Contributions are financed on a pay-as-you-go basis. Expenditures for
post -retirement health care benefits for fiscal year ended June 30, 2005 were $464,525 in
premiums with 147 participants receiving benefits.
(23) Transfers In/Transfers Out
The following schedule summarizes the City's transfer activity:
Transfers In Transfers Out
General Fund
Debt Service Fund
CDC Debt Service Fund
CDC Capital Projects Fund
Non -Major Governmental Funds
Non -Major Enterprise Fund
General Fund
Non -Major Governmental Funds
Debt Service Fund
CDC Capital Projects Fund
CDC Debt Service Fund
Amount
$1,796,447(a)
250,000
2,046,447
343,500
922,972(b)
1,266,472
342,251
981,947(c)
1,324,198
4,884,468(d)
1
67
CITY OF WEST COVINA
Notes to the Basic Financial Statements
(Continued)
(23) Transfers In/Transfers Out, (Continued)
Transfers In
Non -Major Governmental Funds
Non -Major Enterprise Fund
Total Transfers In
Total Transfers Out
Transfers Out Amount
General Fund 3,394
Non -Major Governmental Funds 317,158
320,552
General Fund 249,863(e)
10,092,000
General Fund 298,446(e)
$10.390.446
(a) The Traffic Safety Fund and the Public Safety Fund transferred $1,037,500 and
$590,000, respectively, to the General Fund to reimburse the General Fund for
traffic and public safety related activities. The remaining $168,947 was
transferred from the Prop A fund to reimburse the General Fund for prior year's
Prop A eligible projects.
(b) The Capital Outlay Fund transferred $922,972 of the 2004 Lease Revenue bond
proceeds to the Debt Service Fund to fund the capitalized interest and expense
accounts.
(c) The CDC Capital Projects Fund transferred $981,947 to the CDC Debt Service
Fund to provide funding for debt service.
(d) The Community Development Commission Debt Service Fund transferred
$2,684,468 to the Community Development Commission Capital Projects Fund.
This transfer represents 20% of property tax increment received by the
Community Development Commission during the year that is restricted for low
and moderate income housing projects.
The Redevelopment Agency Debt Service Fund also transferred $2,200,000 to the
Redevelopment Agency Capital Projects Fund. The transfer was made to provide
funding for repayment of advances made by the General Fund to the
Redevelopment Agency Capital Projects Fund.
(e) The General Fund transferred a total of $548,290 to the Simulator Enterprise
Fund to close the fund during the year. Of the $548,290, $298,426 represents the
book value of the capital assets that were transferred between Business -type
activities and Governmental activities. As such, the transfer of the assets is
accounted for in the Government -wide Financial Statements for Governmental
1
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' CITY OF WEST COVINA
Notes to the Basic Financial Statements
' (Continued)
1
' (23) Transfers In/Transfers Out, (Continued)
activities and the Fund Financial Statements for the Business -type activities, creating
out -of balance transfers in the Fund Financial Statements.
(24) Expenditures in Excess of Appropriations
Expenditures for the year ended June 30, 2005 exceeded the appropriations of the
following funds:
Budget Actual Variance
Special Revenue Funds:
BKK Community Fund $595,268 1,785,940 1,190,672
' (25) Subsequent Events
In September 2005, the City issued $2,735,000 of Variable Rate Lease Refunding Bonds,
Series C to provide funds to refinance the City's 2002 Series A Variable Rate Lease
Revenue Refunding Bonds. The bonds mature annually on September 1 in amounts
ranging from $40,000 to $155,000 through September 1, 2034. The bonds accrue interest
at a variable rate reset weekly. Interest payments are due on the first business day of each
1 month.
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REQUIRED SUPPLEMENTARY INFORMATION
71
CITY OF WEST COVINA
Notes to the Required Supplementary Information
Year ended June 30, 2005
(1) Budgets and Budgetary Data
The annual budget adopted by the City Council provides for the general operation of the
City. The annual budget is adopted in summary form by the City Council in June of each
year for the General, special revenue and capital projects funds. The resolution sets a
combined appropriation of the funds for the operation of the City.
The City Manager is authorized to transfer budgeted amounts between departments to
assure adequate and proper standards of service. Budgetary revisions, including
supplemental appropriations which increase appropriations in individual funds, must be
approved by the City Council. The budgetary level of control is at the fund level. The
budgeted figures used in the financial statements are the final amended amounts, which
do not vary significantly from the original adopted budget.
The budget is formally integrated into the accounting system and employed as a
management control device during the year for the General Fund, special revenue funds
and capital projects funds.
Budgets for governmental fund types are adopted on a basis consistent with generally
accepted accounting principles. Operating appropriations lapse at the end of the fiscal
year. Capital projects funds are appropriated on a project basis and appropriations are
funded by the council to continue until the specific projects are completed.
72
CITY OF
WEST COVINA
General Fund
Schedule of Revenues, Expenditures and
Changes in Fund Balances -
Budget and Actual
Year ended June 30, 2005
'
Variance
Prior
Budget
Positive
Year
Original
Final
Actual
(Negative)
Actual
Revenues:
Taxes
Licenses and permits
$ 23,914,000
936,230
23,914,000
936,230
25,398,013
1,045,331
1,484,013
109,101
24,945,789
1,419,656
Fines and forfeitures
125,000
125,000
118,954
(6,046)
103,017
Investment income
4,234,000
5,234,000
5,231,516
(2,484)
3,924,651
Rental income
72,300
72,300
91,010
18,710
70,716
Revenue from other agencies
6,856,500
7,043,072
7,457,837
414,765
5,252,664
Charges for services
1,548,505
1,548,505
1,988,021
439,516
825,582
Other revenues
72,500
72,500
563,836
491,336
250,828
1
Total revenues
37,759,035
38,945,607
41,894,518
2,948,911
36,792,903
Expenditures:
Current:
General government
4,077,422
4,184,743
4,109,595
75,148
4,096,735
Less interfundrevenues
(1,900,000)
(1,900,000)
(1,864,101)
(35,899)
(1,942,452)
1
Public safety
36,995,816
37,413,771
36,709,896
703,875
32,740,309
Public works
3,932,986
3,957,164
3,709,671
247,493
3,913,924
Community services
Community development
1,011,670
506,531
1,175,295
506,755
1,002,117
488,397
173,178
18,358
3,434,243
485,611
Total expenditures
44,624,425
45,337,728
44,155,575
1,182,153
42,728,370
Excess (deficiency) of
revenues over (under)
expenditures
(6,865,390)
(6,392,121)
.(2,261,057)
4,131,064
(5,935,467)
'
Other financing sources (uses):
Transfers in
1,862,750
2,012,750
2,046,447
33,697
3,675,141
Transfers out
(353,500)
(353,500)
(995,203)
(541,703)
(17,603)
Issuance of long-term debt
-
-
-
-
261,792
Total other financing
sources (uses)
1,509,250
1,659,250
1,151,244
(508,006)
3,919,330
Net change in fund balances
(5,356,140)
(4,732,871)
(1,109,813)
3,623,058
(2,016,137)
Fund balances at beginning of year
48,825,169
48,825,169
48,825,169
-
50,841,306
Fund balances at end of year
$ 43,469,029
44,092,298
47,715,356
3,623,058
48,825,169
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74
SUPPLEMENTARY SCHEDULES
75
CITY OF WEST COVINA
Combining Balance Sheet _ Non -Major Governmental Funds
June 30, 2005
Assets
Cash and investments
Cash and investments with
fiscal agent
Receivables:
Accounts
Taxes
Interest
Assessments
Notes and loans
Due from other funds
Due from other agencies
Inventory
Prepaid items
Total assets
Liabilities and Fund Balance
Liabilities:
Accounts payable
Other accrued liabilities
Due to other funds
Deferred revenue .
Advances from other funds
Total liabilities
Fund balance:
Reserved for:
Encumbrances
Notes and loans
Inventory
Prepaid items
Unreserved -designated
Unreserved-undesignated
Total fund balance
Total liabilities
and fund balance
Special Capital
Revenue Projects
Funds Funds
Totals
2005 2004
$ 8,461,156 3,521,463 11,982,619 11,755,343
11,573,915 11,573,9154,392
282,129
- 282,129
204,007
585,151
- . 585,151
539,470
26,209
7,981 34,190
17,947
61,804
- 61,804
77,161
6,027,263
- 6,027,263
7,253,705
10,384
- 10,384
10,384
3,494,296
- 3,494,296
2,046,693
14,977
- 14,977
14,028
908
- 908
1,780
$ 18,964,277 15,103,359 34,067,636 21,924,910
$ 1,772,668
72,337 1,845,005
795,820
211,906
179,333 391,239
326,073
1,517,033
- 1,517,033
773,273
6,966,385
- 6,966,395
7,570,679
-
19,000 19,000
19,000
10,467,992 270,670 10,738.662 9,484,844
1,074,470
8,965,585 10,040,055
267,699
1,425,000
- 1,425,000
2,613,721
14,977
- 14,977
14,028
908
- 908
1,780
7,862,693
5,867,104 13,729,797
11,383,989
(1,881,763)
- (1,881,763)
(1,941,151)
8,496,285
14,832,689 23,328,974
12,440,066
$ 18,964,277 15,103,359 34,067,636 21,924,910
76
CITY OF WEST COVINA
Combining Statement of Revenues, Expenditures
and Changes in
Fund Balances
-
Non -Major Governmental Funds
'
Year ended June 30, 2005
Special
Capital
Revenue
Projects
Totals
Revenues:
Funds
Funds
2005
2004
Taxes
$ 6,095,794
125,392
6,221,186
6,089,477
Special assessments
3,448,956
-
3,448,956.
3,311,896
Licenses and permits
1,428
1,428
5,421
Fines and forfeitures
1,145,646
-
1,145,646
1,307,519
'
Investment income
132,210
193,034
325,244
82,704
Rental income
3,850
21,836
25,686
12,310
Revenue from other agencies
4,578,999
15,572
4,594,571
3,334,039
Charges for services
1,545,148
-
1,545,148
1,453,418
Repayment of notes and loans
583,169
-
583,169
652,701
Developer fees
-
378,493
378,493
916,384
'
Other revenues
566,293
49,273
615,566
973,362
Total revenues
18,101,493
783,600
18,885,093
18,139,231
Expenditures:
Current:
General government
107,645
573,273
680,918
95,942
Public safety
915,921 "
8,712
924,633
1,276,427
Public works
9,069,299
158,221
9,227,520
7,079,289
Community services
Community development
5,967,372.
611,452
1,368,265
-
7,335,637
611,452
7,185,817
526,129
Total expenditures
16,671,689
2,108,471
18,780,160
16,163,604
Excess (deficiency)
of revenues over
1
(under) expenditures
1,429,804
(1,324,871)
104,933
1,975,627
Other financing sources (uses):
Transfers in
320,552
-
320,552
212,822
1
Transfers out
(2,105,605)
(930,972)
(3,036,577)
(3,620,360)
Issuance of long-term debt
-
13,500,000
13,500,000
-
Total other financing
sources (uses)
(1,785,053)
12,569,028
10,783,975
3,407,538
Net change in fund balances
(355,249)
11,244,157
10,888,908
(1,431,911)
Fund balances at beginning of year
8,851,534
3,588,532
12,440,066
13,871,977
Fund balances at end of year
$ 8,496,285
14,832,689
23,328,974
12,440,066
1 77
NON -MAJOR SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for specific revenues that are legally restricted to
expenditure for particular purposes'.
The City of West Covina has the following Non -Major Special Revenue Funds:
Recreation Programs Fund — This fund accounts for fees charged to participants for recreation
programs.
Drug Enforcement Rebate Fund - This fund accounts for the City's portion of revenue received
from drug asset seizures. The revenue is used to enhance the police programs.
Business Improvement Tax Fund — This fund accounts for business improvement taxes which
are restricted to economic development activities.
Air Ouality Improvement Fund — This fund accounts for the City's portion of motor vehicle
registration fees collected under AB 2766. This fee was levied to fund programs to reduce air
pollution from mobile sources such as cars, trucks and buses. Money is distributed to the cities
based on population, and additional discretionary grants are made based on specific requests.
Proposition A Fund — This fund accounts for the 0.5% sales tax collected in Los Angeles County
which is used for transportation programs and projects.
Proposition C Fund — This fund accounts for gasoline taxes which are restricted for
transportation programs and projects.
Traffic Safety Fund — This fund accounts for the vehicle code fines expended for traffic safety
enforcement.
State Gas Tax Fund — This fund accounts for the City's proportionate share of gas tax monies
collected by the State of California which are used for street construction and maintenance.
Traffic Congestion Relief Fund — This fund accounts for revenues and expenditures related to the
City's allocation of AB2898 monies received from the State.
Police Special Program Fund — This fund accounts for donations received and expenditures
related to the . Police Department's Drug and Alcohol Awareness Program (the "Every 15
Minutes Program" and D.A.R.E.)
Transportation Development Act Fund — This fund accounts for regional Transportation
Development Act funds received from Los Angeles County which are used for local streets and
roads.
Waste Management Fund — This fund accounts for the money received from the State of
California and user fees to develop and implement a plan to reduce solid waste deposits in local
landfills.
Grants Fund - This fund accounts for the various Federal and State of California and local grants
that are restricted to expenditures for specific programs and projects.
Tree Fund — This fund accounts for developer contributions restricted for the replacement of
trees and new urban forestation projects.
78
NON -MAJOR SPECIAL REVENUE FUNDS, (CONTINUED)
Inmate Welfare Fund — This fund accounts for revenues from items sold to inmates. The
' revenues are used to enhance inmate welfare.
BKK Community Fund — This fund accounts for revenue received which is restricted for
community enhancement in the neighborhood surrounding the BKK landfill site.
Charter Cable Fund — This fund accounts for monies received from the City's cable television
franchisee for a one-time litigation settlement and for cable -related capital expenditures.
Public Safety Fund — This fund accounts for sales tax revenue legally restricted for public safety.
Revenue is used to augment police operations.
CDBG Fund — This fund accounts for activities of the Community Development Block Grant
received from the U.S. Department of Housing and Urban Development.
tCOPS Fund — This fund accounts for revenue from the State restricted for supplementing police
operations.
Arts in Public Places — This fund accounts for development fees paid in lieu of acquisition and
installation of approved artwork in a development with expenditures restricted to acquisition,
installation, maintenance and repair of artworks at approved sites.
' Special Assessments Fund — This fund accounts for monies received from services deemed to
benefit the properties and businesses against which the special benefit assessments are levied.
The assessments are levied once a year and sent to the Los Angeles County Tax Collector for
collection, or billed directly to business owners. The City presently provides sewer, open space,
landscape maintenance, park maintenance, street lighting and business improvement services.
I
79
Assets
Cash and investments
Receivables:
Accounts
Taxes
Interest
Assessments
Notes and loans
Due from other funds
Due from other agencies
Inventory
Prepaid items
CITY OF WEST COVINA
Non -Major Special Revenue Funds
Combining Balance Sheet
June 30, 2005
Business
Recreation Drug Improvement Air Quality Proposition
Programs Enforcement Tax Improvement A
$ 141,361
17,185
321
36,413
86
Total assets
$ 158,867
36,499
Liabilities and Fund Balances
Liabilities:
Accounts payable
$ 41,047
-
Other accrued liabilities
16,739
-
Due to other funds
-
-
Deferred revenue
-
-
Total liabilities
57,786
-
Fund balances (deficit):
Reserved for:
Encumbrances
3,485
29,633
Notes and loans
-
-
Inventory
-
-
Prepaid items
-
-
Unreserved:
Designated for:
Special purposes
97,596
6,866
Undesignated
-
-
Total fund balances (deficit)
101,081
36,499
Total liabilities and
fund balances
$ 158,867
36,499
42,394 136,905 701,420
118 308. 2,106
42,512 137,213 703,526
- 40,364
193,292
- 631
1,064
- 40,995
194,346
1,000 302,153
42,512 95,218 207,027
42,512 96,218 509,180
42,512 137,213 703,526
t
t
1
1
1
1
1
1
1
1
Traffic Police
Transportation
Proposition
Traffic
Gas -
Congestion Special
Development
Waste
C
S afety
Tax
Relief Programs
Act
Management
1,867,606
145,479
508,339
- 17,303
46,266
185,303
-
59,510
185,325
- -
-
52,139
5,889
140
1,306
- 51
117
600
-
-
-
- -
4,685
-
1,873;495
205,129
694,970
- 17,354
51,068
238,042
32,250 4,210 46,666 11,492 928 - 964
3,595 3,033 25,590 - - 281 2,722
- - 298,458 4,219 - - -
35,845 7,243 370,714 15,711 928 281 3,686
38,174 9,970 76,445
1,799,476 187,916 247,811 - 16,426 50,787 234,356
(15,711)- - -
1,837,650 197,886 324,256 (15,711) 16,426 50,787 234,356
1,873,495 205,129 694,970 - 17354 51,068 238,042
(Continued)
81
CITY OF WEST COVINA
Non -Major Special Revenue Funds
Combining Balance Sheet
(Continued)
Inmate
BKK
Charter
Public
Grants Tree Welfare
Community
Cable
Safety
Assets
Cash and. investments
- 29158
6,982
-
771,964
176,764
Receivables:
Accounts
251,904 -
-
-
-
-
Taxes
- -
-
-
150,000
51,611
Interest
2,468 5
21
243
1,061
630
Assessments
- -
-
-
-
-
Notes and loans
- -
-
1,425,000
-
-
Due from other fiords
- -
-
-
-
-
.Due from other agencies
2,207,942
Inventory
- -
-
-
-
-
Prepaid items.
150 -
-
-
758
-
Total assets
2,462,464 2,163
7,003
1,425,243
923,783
229,005
Liabilities and Fund Balances
Liabilities:
Accounts payable
72,529 -
-
59,215
661
-
Other accrued liabilities
16,886 -
-
109,520
-
-
Due to other funds
1,167,756 -
-
7,171
-
-
Deferred revenue
2,302,318 -
-
-
-
-
Total liabilities
3,559,489 -
-
175,906
661
-
Fund balances (deficit):
Reserved for:
Encumbrances
509,561 -
-
83,653
-
-
Notes and loans
- -
-
1,425,000
-
-
Inventory
- -
-
-
-
-
Prepaid items
150 -
-
-
758
-
Unreserved:
Designated for:
Special purposes
- 2,163
7,003
-
922,364
229,005
Undesignated
1,606,736 -
-
259,316
-
-
Total fund balances (deficit) (1,097,025) 2,163
7,003
1,249,337
923,122
229,005
Total liabilities and
fund balances
2,462,464 2,163
7,003
1,425,243
923,783
229,005
82
k
Arts in
COPS
Public
Special
Totals
CDBG
Grant
Places
Assessments
2005
2004
- .
71,680
8,080
3,594,739
8,461,156
7,899,322
-
-
-
13,040
282,129
204,007
-
-
-
86,566
585,151
539,470
-
249
8
10,482
26,209
13,298
-
-
-
61,804
61,804
77,161
4,602,263
-
-
-
6,027,263
7,253,705
10,384
-
-
-
10,384
10,384
1,281,669
-
-
-
3,494,296
2,046,693
-
-
-
14,977
14,977
14,028
-
-
-
-
908
1,780
5,894,316
71,929
8,088
3,781,608
18,964,277
18,059,848
993,008 -
7,096 7,799
39,429 -
4,602,263 -
5,641,796 7,799
- 276,052 1,772,668
768,650
- 16,950 211,906
95,713
- - 1,517,033
773,273
- 61,804 6,966,385
7,570,678
354,806 10,467,992 9,208,314
- - 20,396 1,074,470 200,030
- - - - 1,425,000 2,613,721
- - - 14,977 14,977 14,028
- - - 908 1,780
252,520 64,130 8,088 3,391,429 7,862,693 7,863,126
- 1,881,763 1,841,151
252,520 64,130 8,088 3,426,802 8,496,285 8,851,534
5,894,316 71,929 8,088 3,781,608 18,964,277 18,059,848
Ij
m
CITY OF WEST COVINA
Non -Major Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Year ended June 30, 2005
Revenues:
Taxes
Special assessments
Licenses and permits
Fines and forfeitures
Investment income
Rental income
Revenue from other agencies
Charges for services
Repayment of notes and loans
Other revenues
Total revenues .
Business
Recreation Drug Improvement Air Quality Proposition
Programs Enforcement Tax Improvement A
$ - - - - 1,610,207
1,570 .764 611 1,406 15,169
3,850 - - - -
- 14,845 - 97,484 170,816
1,159,153 - - - 4,989
- - - - 60
1,164,573 15,609 611 98,890 1,801,241
Expenditures:
Current:
General government -
Public safety -
Public works -
Community services 1,156,289
Community development -
71,554 - - -
- - 86,031
123,847 1,690,597
Total expenditures 1,156,289 71,554
Excess (deficiency) of revenues
over (under) expenditures 8,284 55,945
123,847 1,776,628
611 (24,957) 24,613
Other financing sources (uses):
Transfers in - -
- 12,853
-
Transfers out - -
- -
435,252
Total other financing sources (uses) - -
- 12,853
435,252
Net change in fund balances _ 8,284 (55,945)
611 (12,104)
(410,639)
Fund balances (deficit) at
beginning of year 92,797 92,444
41,901 108,322
919,819
Fund balances (deficit) at end of year $ 101,081 36,499
42,512 96,218
509,180
84
1
t
1
1
1
1
1
1
1
1
1
1
1
1
1
Proposition Traffic Gas
C Safety Tax
1,335,957 - 2,036,510
- 1,290
- 1,145,646 -
25,016 1,704 6,164
1,360,973 1,147,350 2,043,964
Traffic Police Transportation
Congestion Special Development Waste
Relief Programs Act Management
782 258 777
- 56,219
- 4,989 -
782 5,247 56,996
15,779 - - - - -
- - - - 4,505 -
739,836 318,869 2,083,504 16,493 - 64,448
364,118 - - - - -
1,119,733 318,869 2,083,504 16,493 4,505 64,448
3,377
220,871
441
224,689
235,178
235,178
241,240 828,481 (39,540) (15,711) 742 7,452 10,489
266,286 - 30,000
- (1,037,500) -
266,286 (1,037,500) 30,000
507,526 (209,019) (9,540)
- - 8,000
8,000
(15,711) 742 548
1,330,124 406,905 333,796 - 15,684 50,239
1,837,650 197,886 324,256 15,711 16,426 50,787
85
12,853
12,853
(23,342)
257,698
234,356
(Continued)
CITY OF WEST COVINA
Non -Major Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
(Continued)
Inmate
BKK
Charter
Grants Tree
Welfare
Community
Cable
Revenues:
Taxes
-
Special assessments
- -
-
-
-
Licenses and permits
- -
-
-
-
Fines and forfeitures
- -
-
-
-
Investment income
11,412 26
157
3,026
5,725
Rental income
- -
-
-
-
Revenue from other agencies
1,702,270 -
-
-
-
Charges for services
132,794
Repayment of notes and loans
- -
-
-
-
Other revenues
- 360
10,142
-
550,000
Total revenues
1,846,476 386
10,299
3,026
555,725
Expenditures:
Current:
General government
- -
-
-
-
Public safety
558,443 -
14,497
-
-
Public works
358,623 -
-
364,326
-
Community services
315,012 -
-
1,421,614
32,750
Community development
- -
-
-
-
Total expenditures
1,232,078 -
14,497
1,785,940
32,750
Excess (deficiency) of revenues
over (under) expenditures
614,399 386
4,198
(1,782,914
522,975
Other financing sources (uses):
Transfers in
3,413 -
-
-
-
Transfers out
- -
-
-
-
Total other financing sources (uses)
3,413 -
-
-
-
Net change in fund balances
617,811 386
(4,198)
(1,782,914)
522,975
Fund balances (deficit) at
beginning of year
(1,714,836) 1,777
11,201
3,032,251
400,147
Fund balances (deficit) at end of year
1,097,025 2,163
7,003
1,249,337
923,122
86
1
1
1
1
1
1
i
1
1
Arts in
Public
COPS
Public
Special
Totals
Safety
CDBG
Grant
Places
Assessments
2005
2004
535,834
-
-
-
577,286
6,095,794
5,843,054
-
-
-
-
3,448,956
3,448,956
3,311,896
-
-
-
-
138
1,428
5,421
-
-
-
-
-
1,145,646
1,307,519
3,327
A110
1,971
11
44,847
132,210
73,580
-
-
-
-
-
3,850
1,617
-
2,365,723
163,565
8,077
-
4,578,999
3,334,039
-
-
-
-
27,341
1,545,148
1,428,418
-
583,169
-
-
-
583,169
652,701
-
-
-
-
301
566,293
860,362
539,161
2,953,002
165,536
8,088
4,098,869
18,101,493
16,818,607
-
3,805
-
- 88,061
107,645
5,553
739
12,769
253,414
- -
915,921
1,276,427
-
1,457,944
-
- 3,579,225
9,069,299
6,973,514
-
627,967
-
- -
5,967,372
6,709,975
-
535,726
-
- 75,726
611,452
526,129
739
2,638,211
a 253,414
- 3,743,012
16,671,689
15,491,598
538,422
314,791
87,878
8,088 355,857
1,429,804
1,327,009
-
-
-
- -
320,552
212,822
(590,000)
-
-
- (30,000)
(2,105,605)
(1,735,219)
590,000
-
-
- (30,000)
(1,785,053)
(1,522,397)
(51,578)
314,791
(87,878)
8,088 325,857
(355,249)
(195,388)
280,583
62,271
152,008
- 3,100,945
8,851,534
9,046,922
229,005
252,520
64,130
8,088 3,426,802
8,496,285
8,851,534
87
CITY OF WEST COVINA
Recreation Programs Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Revenues:
Investment income
Rental income
Charges for services
Other revenues
Total revenues
Expenditures:
Current:
Public safety
Community services
Total expenditures
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Year ended June 30, 2005
Variance Prior
Final Positive Year
Budget Actual Negative Actual
$ - 1,570 1,570 123
1,000 3,850 2,850 1,617
1,377,660 1,159,153 (218,507) 1,100,807
- - - 67,890
1,378,660 1,164,573 214,087 1,170,437
- - 79
1,403,648 1,156,289 247,359 1,096,733
1,403,648 1,156,289 247,359 1,096,812
(24,988) 8,284 33,272 73,625
92,797 92,797 - 19,172
$ 67,809. 101,081 33,272 92,797
88
CITY OF WEST COVINA
Drug Enforcement Rebate Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Year ended June 30, 2005
Variance Prior
Final Positive Year
Budget Actual (Negative Actual
Revenues:
Investment income
$ 980
764
(216)
653
Revenue from other agencies
15,000
14,845
155
73,705
Total revenues
15,980
15,609
371
74,358
Expenditures:
Current:
Public safety
151,054
71,554
79,500
142,748
Total expenditures
151,054
71,554
79,500
142,748
Net change in fund balances
(135,074)
(55,945)
79,129
(68,390)
Fund balances at beginning of year
92,444
.92,444
-
160,834
Fund balances at end of year
$ 42,630
36,499
79,129
92,444
89
CITY OF WEST COVINA
Business Improvement Tax Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Year ended June 30, 2005
Revenues:
Investment income
Total revenues
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Variance Prior
Final Positive Year
Budget Actual (Negative Actual
$ 800
611
189
240
800
611
189
240
800
611
.(189)
240
41,901
41,901
—
41,661
$ 42,701
42,512
189
41,901
.o
CITY OF WEST COVINA
Air Quality Improvement Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Year ended June 30, 2005
Revenues:
Investment income
Revenue from other agencies
Other revenues
Total revenues
Expenditures:,
Current:
Public works
Community services
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses):
Transfers in
Total other financing sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Variance Prior
Final Positive Year
Budget Actual (Negative Actual
$ 100 1,406 1,306 149
137,000 97,484 (39,516) 129,412
- 12,000
137,100 98,890 38,210 141,561
- - 38,219
171,100 123,847 47,253 30,054
171,100 123,847 47,253 68,273
34,000 24,957 9,043 73,288
12,853 12,853 -
12,853 12,853 -
(34,000) (12,104) 21,896 73,288
108,322 108,322 - 35,034
$ 74,322 96,218, 21,896 108,322
91
CITY OF VEST COVINA
Proposition A Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Revenues:
Taxes
Investment income
Revenue from other agencies
Charges for services
Other revenues
Total revenues
Year ended June 30, 2005
Variance Prior
Final Positive Year
Budget Actual (Negative) Actual
$ 1,480,000 1,610,207 130,207 1,513,311
10,000 15,169
5,169
6,948
363,000 170,816
(192,184)
386,360
- 4,989
4,989
9,612
- 60
60
21,448
1,853,000 1,801,241 51,759 1,937,679
Expenditures:
Current:
Public works
454,514
86,031
368,483
-
Community services
2,009,316
1,690,597
318,719
2,104,704
Total expenditures
2,463,830
1,176,628
687,202
2,104,704
Excess (deficiency) of revenues
over (under) expenditures
610,830
24,6.13
635,443
167,025
Other financing sources (uses):
Transfers out
-
435,252
435,252
-
Total other financing sources (uses)
-
435,252
435,252
-
Net change in fund balances
(610,830)
(410,639)
200,191
(167,025)
Fund balances at beginning of year
919,819
919,819
-
1,086,844
Fund balances at end of year
$ 308,989
509,180
200,191
919,819
92
'
CITY OF WEST COVINA
Proposition C Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget
and Actual
Year
ended June 30,
2005
Final
Variance
Positive
Prior
Year
Budget
Actual
Negative
Actual
Revenues:
Taxes
Investment income
$ 1,260,000
6,000
1,335,957
25,016
75,957
19,016
1,259,965
5,351
Total revenues
1,266,000
1,360,973
94,973
1,265,316
Expenditures:
'
Current:
General government
18,608
15,779
2,829
-
Public works
1,464,049
739,836
724,213
100,286
Community services
439,189
364,118
75,071
781,857
Total expenditures
1,921,846
1,119,733
802,113
882,143
Excess deficient of revenues
(deficiency)
over (under) expenditures
655,846
241,240
897,086
383,173
Other financing sources (uses):
Transfers in
-
266,286
266,286
-
266,286
266,286
Total other financing sources (uses) -
-
Net change in fund balances
(655,846)
507,526
1,163,372
383,173
Fund balances at beginning of year
1,330,124
1,330,124
-
946,951
Fund balances at end of year
674,278
1 837 650
1,163,372
1,330,124
93
CITY OF WEST COVINA
Traffic Safety Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Year ended June 3.0, 2005
Variance Prior
Final Positive Year
Budget Actual(Negative) Actual
Revenues:
Fines and forfeitures $ 1,400,000 .1,145,646 (254,354) 1,307,519
Investment income - 1,704 1,704 2,841
Total revenues 1,400,000 1,147,350 (252,650 1,310.,360
Expenditures:
Current:
Public works 426,951. 318,869 108,082 412,415
Total expenditures 426,951 318,869 108,082 412,415
Excess (deficiency) of
revenues over (under)
expenditures 973,049 828,481 144,568 897,945
Other financing sources (uses):
Transfers .out
1,245,000
1,037,500
207,500.
1,040,000
Total other financing
sources (uses)
1,245;000
1,037,500
207,500
1,040,000
Net change in fund balances
(271,951)
(209,019)
62,932
(142,055)
Fund balances at beginning of year
406,905
406,905
-
548,960
Fund balances at end of year
$ 134,954
197,886
62,932
406,905
94
1
i
1
1
1
1
1
1
1
1
1
CITY OF WEST COVINA
Gas Tax Fund
Schedule of Revenues, Expenditures. and Changes in Fund Balances - Budget and Actual
Year ended June 30, 2005
Variance Prior
Final Positive Year
Budget Actual (Negative) Actual
Revenues
Taxes
$ 2,000,000
2,036,510
36,510
2,016,881
Licenses and permits
-
1,290
1,290
-
Investment income
-
6,164
6,164
1,068
Other revenues
-
-
-
1,114
Total revenues
2,000,000
2,043,964
43,964
2,019,063
Expenditures:
Current:
Public works
2,356,703
2,083,504
273,199
1,874,579
Total expenditures
2,356,703
2,083,504
273,199
1,874,579
Excess (deficiency) of
revenues over (under)
expenditures (356,703) 39,540 317,163 144,484
Other financing sources (uses):
Transfers in
30,000
30,000 -
162,000
Total other financing
sources (uses)
30,000
30,000 -
162,000
Net change in fund balances
(326,703)
(9,540) 317,163
306,484
Fund balances at beginning of year
333,796
333,796 -
27,312
Fund balances at end of year
$ . 7,093
324,256 317,163
333,796
95
CITY OF WEST COVINA
Traffic Congestion Relief Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Year ended June 30, 2005
Variance Prior
Final Positive Year
Budget Actual(Negative Actual
Revenues:
Investment income
$ -
782
782
-
Total revenues
-
782
782
-
Expenditures:
Current:
Public works
199,121
16,493
1-82,628
203,848
Total expenditures
199,121
16,493
182,628
203,848
Net change in fund balances
(199,121)
(15,711)
183,410
(203,848)
Fund -balances at beginning of year
-
-
-
203,848
Fund balances (deficit) at end of year
$ 199,121
15,711
183,410
-
CITY OF WEST COVINA
Police Special Programs Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Revenues:
Investment income
Other revenues
Total revenues
Expenditures:
Current:
Public safety
Total expenditures
Year ended June 30, 2005
Variance
Prior
Final
Positive
Year
Budget
Actual(Negative
Actual
$ -
258
258
95
•. 2,535
4,999
2,454
3,800
2,535
5,247
2,712
3,895
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
8,512
4,505
4,007
2,797
8,512
4,505
4,007
2,797
(5,977)
742
6,719
1,098
15,684
151684
-
14,586
$ 9,707
161426
6,719
15,684
97
CITY OF WEST COVINA
Transportation Development Act Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Year ended June 30, 2005
Revenues:
Investment income
Revenue from other agencies
Total revenues
Expenditures:
Current:
Public works
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses):
Transfers in
Total other financing
sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances (deficit) at end of year
Variance Prior
Final Positive Year
Budget Actual (Ne ative Actual
$ - 777 777 -
55,955 56,219 264 42,755
'55,955 56,996 1,041 42,755
138,942 64,448 74,494 -
138,942 64,448 74,494 -
82,987 7,452 75,535 42,755
8,000 8,000 -
(82,987)
548
83,535 42,755
50,239
50,239
- 7,484
$ 32,748
50,787
83,535 50,239
98
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1
1
1
1
1
1
CITY OF WEST COVINA
Waste Management Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Year ended June 30, 2005
Revenues:
Investment income
Charges for services
Other revenues
Total revenues
Expenditures:
Current:
Community services
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses):
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
99
Variance Prior
Final Positive Year
Budget Actual(Negative Actual
$ . 600 3,377 2,777 1,369
207,200 220,871 13,671 209,056
- 441 441 -
207,800 224,689 16,889 210,425
235,274 235,178 96, 211,730
235,274 235,178 96 211,730
27,474 10,489 16,985 1,305
12,853 12,853 -
12,853 12,853 -
(27,474) (23,342) 4,132 (1,305)
257,698 257,698 - 259,003
$230,224 234,356 4,132 257,698
CITY OF WEST COVINA
Grants Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Year ended June 30, 2005
Revenues:
Investment income
Revenue from other agencies
Charges for services
Total revenues
Expenditures:
Current:
Public safety
Public works
Community services
Total expenditures
Excess (deficiency) of
revenues over (under)
expenditures
Other financing sources (uses):
Transfers in
Total other financing
sources (uses)
Net change in fund balances
Fund balances (deficit) at
beginning of year
Fund balances (deficit) at end of year
Variance
Prior
Final
Positive
Year
Budget
Actual(Negative)
Actual
$ -
11,412
11,412
3,618
1,743,334
1,702,270
(41,064)
1,826,213
73,500
132,794
59,294
75,314
1,816,834
1,846,476
29,642
1,905,145
761,815
558,443
203,372
843,906
903,060
358,623
544,437
16;651
1,437;663
315,012
1,122,651
1,181,546
3,102,538
1,232,078
1,870,460
2,042,103
(1,285,704) 614,398 1,900,102 (136,958)
3,413 3,413 - 41,696
3,413 3,413 - 41,696
(1,282,291) 617,811 1,900,102 (95,262)
(1,714,836) 1,714,836 - 1,619,574
$ (2,997,127) 1,097;025 1,900,102 1,714,836
100
CITY OF WEST COVINA
Tree Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Year ended June 30, 2005
Revenues:
Investment income
Other revenues
Total revenues
Expenditures:
Current:
Public works
Total expenditures
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Variance Prior
Final Positive Year
Budget Actual Negative Actual
$ - 26 26 20
- 360 360 -
- 386 386 20
- - 3,065
- - 3,065
- 386 386 (3,045)
1,777 1,777 - 4,822
$ 1,777 2,163 386 1,777
101
CITY OF WEST COVINA
Inmate Welfare Fund
Schedule of Revenues, :Expenditures and Changes in Fund Balances - Budget and Actual
Revenues:
Investment income
Other revenues
Total revenues
Expenditures:
Current:
Public safety
Total expenditures
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Year ended June 30, 2005
Variance Prior
Final Positive Year
Budget Actual (Negative Actual
$ - 157 157 130
7,000 10,142 3,142 2,794
7,000 10,299 3,299 2,924
18,091
14,497
3,594
12,531
18,091
14,497
3,594
12;531
(11,091)
(4,198) .
6,893
(9,607)
11,201
11,201
-
20,808
$ 110
7,003
6,893
11,201
102
1
1
1
1
1
1
1
1
1
CITY OF WEST COVINA
BKK Community Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Revenues:
Investment income
Total revenues
Expenditures:
Current:
Public works
Community services
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Year ended June 30, 2005
Variance Prior
Final Positive Year
Budget Actual Negative Actual
$ - 3,026 3,026 24,401
3,026 3,026 24,401
549,869
364,326
185,543
206,513
45,399 .
1,421,614
1,376,215
400,455
595,268
1,785,940
1,190,672
606,968
595,268 1,782,914 1,187,646 582,567
Other financing sources (uses):
Transfers in - - - 9,126
Total other financing sources (uses) - - - 9,126
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
(595,268)
(1,782,914) (1,187,646)
(573,441)
3,032,251
3,032,251 -
3,605,692
$ 2,436,983
1,249,337 (1,187,646)
3,032,251
103
CITY OF WEST COVINA
Charter Cable Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Year ended June 30, 2005
Revenues:
Investment income
Other revenues
Total revenues
Expenditures:
Current:
Community services
Total expenditures
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Variance Prior
Final Positive Year
Budget Actual Negative Actual
$ - 5,725 5,725 147
550,000 550,000 - 750,000
550,000 555,725 5,725 750,147
195,273
32,750
162,523
350,000
195,273
32,750
162,523
350,000
354,727 522,975 168,248 400,147
400,147 400,147 - -
$ 754, 874 923,122 168,248 400,147
104
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CITY OF WEST COVINA
Public Safety Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Year ended June 30, 2005
Revenues:
'Taxes
Investment income
Total revenues
Expenditures:
Current:
Public safety
Total expenditures
Excess (deficiency) of
revenues over (under)
expenditures
Other financing sources (uses):
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Variance Prior
Final Positive Year
Budget Actual(Negative) Actual
$ 400,000 535,834 135,834 543,623
- 3,327 3,327 848
400,000 539,161 139,161 544,471
68,000 739 67,261 99
68,000 739 67,261 99
332,000 538,422 206,422 544,372
450,000 590,000 140,000 500,000
450,000 590,000 140,000 500,000
(118,000) (51,578) 66,422 44,372
280,583 280,583 - 236,211
$ 162,583 229,005 66,422 280,583
105
CITY OF WEST COVINA
Community Development Block Grant Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Year ended June 30, 2005
Revenues:
Investment income
Revenue from other agencies
Repayment of notes and loans
Total revenues
Expenditures:
Current:
General government
Public safety
Public works
Community services
Community development
Total expenditures
Net change in fund balances
Fund balances (deficit) at
beginning of year
Fund balances (deficit) at end of year
Variance Prior
Final Positive Year
Budget Actual Negative Actual
$ - 4,110
4,110
3,566
1,462,100 2,365,723
903,623
710,989
400,000 583,169
183,169
652,701
1,862,100 2,953,002
1,090,902
1,367,256
32,330
3,805
28,525
-
10,018
12,769
(2,751)
13,501
1,746,785
1,457,944
288,841
355,450
871,231
627,967
243,264
552,896
566,210
535,726
30,484
446,007
3,226,574 2,638,211 588,363 1,367,854
(1,364,474) 314,791 1,679,265 (598)
(62,271) 62,271 - 61,673
$ (1,426,745) 252,520' 1,679,265 62,271
106
CITY OF WEST COVINA
COPS Grant. Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Year ended June.30, 2005
Revenues:
Investment income
Revenue from other agencies
Total revenues
Expenditures:
Current:
Public safety
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses):
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances (deficit) at end of year
Variance Prior
Final Positive Year
Budget Actual Negative Actual
$ - 1,971
1,971
1,414
- 163,565
163,565
164,605
- 165,536
165,536
166,019
318,742
253,414
65,328
260,766
318,742
253,414
65,328
260,766
318,742 97,979 230,864 94,747
- 33,219
33,219
(318,742) (87,878) 230,864 (127,966)
152,008 152,008 - 279,974
$ 166,734 64,130 230,864 152,008
107
CITY OF WEST COVINA
Arts in Public Places
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Year ended June 30, 2005
Variance Prior
Final Positive Year
Budget Actual eaative Actual
Revenues:
Investment income
-
Revenue from other agencies -
8,077
8,077 -
Total revenues -
8,088
8,088 -
Expenditures:
Current:
Community services -
-
- -
Total expenditures -
-
- -
Net change in fund balances -
8,088
.. 8,088 -
Fund balances at beginning of year -
-
- -
Fund balances (deficit) at end of year $ -
8,088
8,088 -
108
CITY OF WEST COVINA
Special Assessments Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Year ended June 30, 2005
Variance Prior
Final Positive Year
Budget Actual (Negative) Actual
Revenues:
Taxes
$ 424,765
577,286
152,521
509,274
Special assessments
3,404,637
3,448,956
44,319 .
3,311,896
Licenses and permits
-
138
138
5,421
Investment income
41,100
44,847
3,747
20,598
Charges for services
-
27,341
27,341
33,629
Other revenues
-
301
301
1,316
Total revenues
3,870,502
4,098,869
228,367
3,892,134
Expenditures:
Current:
General government
88,093
88,061
32
5,553
Public works
3,944,653
3,579,225
365,428
3,762,487
Community development
85,803
75,726
10,077
80,122
Total expenditures
4,118,549
3,743,012
375,537
3,848,162
Excess (deficiency) of
revenues over (under)
expenditures 248,047 355,857 603,904 33,972
Other financing sources (uses):
Transfers out 30,000 30,000 - 162,000
Total other financing
sources (uses) 30,000 30,000 - 162,000
Net change in fund balances
(278,047)
325,857
603,904 (128,028)
Fund balances at beginning of year
3,100,945
3,100,945
- 3,228,973
Fund balances at end of year $ 2,822,898 3,426,802 603,904 3,100,945
109
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110
MAJOR DEBT SERVICE FUNDS
Debt Service Funds are used to account for the accumulation of resources for, and the payment
of, governmental long-term debt principal and interest.
The City of West Covina has the following Major Debt Service Funds:
( City Debt Service Fund - To account for the payment of principal and interest on the City's long-
term debt issues.
' Community Development Commission Debt Service Fund - To account for the payment of
principal and interest on long-term debt of the Community Development Commission.
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CITY OF WEST COVINA
City Debt Service Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Year ended June 30, 2005
Variance
Prior
Final
Positive
Year
Budget
Actual
Negative
Actual
Revenues:
Investment income
$ 1,100,000
1,874,145
774,145
(700,608)
Other revenue
410,000
385,949
24,051
279,098
Total revenues
1,510,000
2,260,094
750,094
(421,510)
Expenditures:
Current:
General government
-
-
-
38,208
Public safety
9,860
8,720
1,140
20,858
Public works
-
-
-
2,949
Community services
-
-
-
9,945
Debt service:
Principal
363,361
410,464
(47,103)
227,869
Interest and fiscal charges
1,474,621
1,293,022
181,599
1,007,898
Total expenditures
1,847,842
1,712,206
135,636
1,307,727
Excess (deficiency) of
revenues over (under)
expenditures (337,842) 547,888 885,730 (1,729,237)
Other financing sources (uses):
Transfers in 1,266,472 1,266,472 - -
Transfers out - (342,251) (342,251) (301,992)
Issuance of long-term debt - - - -
Total other financing
sources (uses)
1,266,472
924,221
342,251 (301,992)
Net change in fund balances
928,630
1,472,109
543,479 (2,031,229)
Fund balances at beginning of year
18,330,318
18,330,318
- 20,361,547
Fund balances at end of year
$ 19,258,948
19,802,427
543,479 18,330,318
112
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CITY OF WEST COVINA
Community Development Commission Debt Service Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Revenues:
Taxes
Investment income
Other revenue
Total revenues
Expenditures:
Debt service:
Principal
Interest and fiscal charges
Pass -through payments
Total expenditures
' Excess (deficiency) of
revenues over (under)
expenditures
Other financing sources (uses):
Transfers in
Transfers out
Total other financing
sources (uses)
Net change in fund balances
Fund balances (deficit)
' at beginning of year
Fund balances (deficit) at end of year
Year ended June 30, 2005
Variance
Prior
Final
Positive
Year
Budget
Actual
(Negative)
Actual
$ 15,625,000
17,427,791
1,802,791
16,599,165
459,500
506,795
47,295
81,982
-
464,354
464,354
-
16,084,500
18,398,940
2,314,440
16,681,147
1,345,000
1,345,000
-
1,155,000
6,902,168
5,794,665
1,107,503
5,860,970
4,142,800
4,817,371
674,571
4,067,098
12,389,968
11,957,036
432,932
11,083,068
3,694,532 6,441,904 2,747,372 5,598,079
1,324,198 1,324,198 301,992
(4,387,600) (4,884,468) (496,868) (4,591,255)
(4,387,600)
(3,560,270)
827,330
(4,289,263)
(693,068)
2,881,634
3,574,702
1,308,816
(16,178,316) (16,178,316) - (17,487,132)
$ (16,871,384) 13,296,682 3,574,702 16,178,316
113
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114 1
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u
IMAJOR AND NON -MAJOR CAPITAL PROJECTS FUNDS
Capital Projects Funds are used to account for the purchase or construction of major capital
facilities which are not financed by Proprietary Funds. Capital Projects Funds are ordinarily not
used to account for the acquisition of furniture, fixtures, machinery, equipment and other
relatively minor or comparatively short-lived capital assets.
The City of West Covina has -the following Major Capital Projects Fund:
' Community Development Commission Capital Projects Fund — This fund accounts for the
financial resources to be used for property acquisition, improvement and rehabilitation within
project areas authorized under provisions of the California Community Redevelopment Law.
The City of West Covina has the following Non -Major Capital Projects Funds:
1
1
1
Capital Outlay Fund — This fund accounts for all capital expenditures not being accounted for in
the capital projects described below, or in other fund types.
Construction Tax Fund — This fund accounts for monies received from developers based on the
construction of dwelling units and used primarily to construct public domain assets.
Park Development Fund — This fund accounts for park fees received from residential developers
to be used for new park construction.
1
115
1
Assets
Cash and investments .
Cash and investments with
fiscal agent
Receivables:
Interest
Total assets
Liabilities and Fund Balances
Liabilities:
Accounts payable
Other accrued liabilities
Advances from other funds
Total liabilities
CITY OF WEST COVINA ,
Non -Major Capital Projects Funds
Combining Balance Sheet '
June 30, 2005
Capital
Construction Park Totals
Outlay
Tax Development 2005 2004
,
3,856,021
,
$ 396,237
354,440 2,770,786 3,521,463
11,573,915
- - 11,573,915 4,392
'
1,019
$ 11,970,152 355,459
$ 375
134
330
314
509
644
Fund balances:
Reserved for:
Encumbrances 8,760,114
Unreserved:
Designated for capital projects 3,209,529
Total fund balances
Total liabilities and
fund balances
'• •11
254,915
11,969,643 354,815
$ 11,970,152 355,459
116
6,962
7,981
4,649
2,777,748
15,103,359
3,865,062 .
71,632
72,337
27,170
178,885
179,333
230,360
19,000
19,000
19,000
,
269,517
270,670
276,530
,
105,571
8,965,585
67,669
2,402,660
5,867,104
3,520,863
2,508,231
14,832,689
3,588,532
'
2,777,748
15,103,359
3,865,062
,
1
' CITY OF WEST COVINA
Non -Major Capital Projects Funds
' Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Year ended June 30, 2005
Revenues:
' Taxes
Investment income
Rental income
' Charges for services
Revenue from other agencies
' Developer fees
Other revenues
Total revenues
Expenditures:
Current:
General government
' Public safety
Public works
Community services
' Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
' Other financing sources (uses):
Transfers out
' Issuance of long-teim debt
Total other financing
' sources (uses)
Net change in fund balances
' Fund balances at beginning of year
' Fund balances at end of year
Capital
Construction
Park
Totals
Outlay
Tax
Development
2005
2004
$ -
125,392
-
125,392
246,423
147,547
5,481
40,006
193,034
9,124
-
-
21,836
21,836
10,693
-
-
-
-
25,000
15,572
-
-
15,572
-
-
-
378,493
378,493
916,384
-
-
49,273
49,273
113,000
163,119
130,873
489,608
783,600
1,320,624
550,405
22,868
- 573,273
90,389
8,712
-
- 8,712
-
59,166
99,055
- 158,221
105,775
678,438
-
689,827 1,368,265
475,842
1,296,721
121,923
689,827 2,108,471
672,006
(1,133,602)
8,950
200,219 (1,324,871)
648,618
(922,972)
(8,000)
- (930,972)
(1,885,141)
13,500,000
-
- 13,500,000
-
12,577,028 8,000 - 12,569,028 (1,885,141)
11,443,426 950 (200,219) 11,244,157 (1,236,523)
526,217 353,865 2,708,450 3,588,532 4,825,055
$ 11,969,643 354,815 2,508,231 14,832,689 3,588,532
117,
CITY OF WEST COVINA
Community Development Commission Capital Projects Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Year ended June 30, 2005
Revenues:
Investment income
Rental income
Repayment of notes and loans
Other revenues
Total revenues
Expenditures:
Current:
Community development
Debt service:
Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) of
revenues over (under)
expenditures
Other financing sources (uses):
Transfers in
Transfers out
Total other financing
sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Variance Prior
Final Positive Year
Budget Actual (Negative) Actual
$ 336,000
301,521
(34,479)
176,022
264,000
472,868
208,868
510,460
150,000
1,753,789
1,603,789
1,224,849
38,000
487,459
449,459
121,368
788,000 3,015,637 2,227,637 2,032,699
5,963,382 4,129,971 1,833,411 7,802,694
445,000 445,000 - 425,000
819,484 814,195 5,289 795,427
7,227,866 5,389,166 1,838,700 9,023,121
(6,439,866) 2,373,529 4,066,337 6,990,422
4,387,600 4,884,468 496,868 4,591,255
981,947 981,947 -
4,387,600 3,902,521 (485,079) 4,591,255
(2,052,266) 1,528,992 3,581,258 (2,399,167)
19,556,141 19,556,141 - 21,955,308
$ 17,503,875 21,085,133 3,581,258 19,556,141
118
CITY OF WEST COVINA
Capital Outlay Fund
' Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Year ended June 30, 2005
i
Revenues:
Investment income
Revenue from other agencies
Total revenues
Expenditures:
Current:
General government
Public safety
Public works
Community services
' Total expenditures
Excess (deficiency) of
' revenues over (under)
expenditures
Other financing sources (uses):
Transfers out
' Issuance of long-term debt
Total other financing
sources (uses)
Net change in fund balances
Fund balances at beginning of year
g g Y
' Fund balances at end of year
Variance
Final Positive
Budget Actual(Negative)
$ - 147,547 147,547
15,572 15,572 -
15,572 163,119 147,547
Prior
Year
Actual
726,770
550,405
176,365 35,080
14,150
8,712
5,438 -
87,413
59,166
28,247 32,163
11,997,302
678,438
11,318,864 -
12,825,635 1,296,721 11,528,914 67,243
(12,810,063) (1,133,602) 11,676,461 (67,243)
(922,972) (922,972) - (1,885,141)
13,500,000 13,500,000 - -
12,577,028 12,577,028 - 1,885,141
(233,035) 11,443,426 11,676,461 (1,952,384)
526,217 526,217 - 2,478,601
$ 293,182 11,969,643 11,676,461 526,217
119
6
CITY OF WEST COVINA
Construction Tax Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Year ended June 30, 2005
Revenues:
Taxes
Investment income
Total revenues
Expenditures:
Current:
General.government
Public works
Community services
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses):
Transfers out
Total other financing
sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
`Variance Prior
Final Positive Year
Budget Actual(Negative Actual
$150,000 125,392
(24,608)
246,423
- 5,481
5,481
1,560
150,000, 130,873
19,127
247,983
34,335
22,868 11,467
55,309
408,787
99,055 309,732
73,612
16,000
- 16,000
22,673
459,122
121,923 337,199
151,594
309,122 8,950 318,072 96,389
8,000 8,000 -
8,000 8,000 -
(309,122) 950 310,072 96,389
353,865 353,865 - 257,476
$ 44,743 354,815 310,072 353,865
120
1
1
1
1
1
1
1
1
1
1
1
1
1
1
CITY OF WEST COVINA
Park Development Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Year ended June 30, 2005
Revenues:
Investment income
Rental income
Charges for services
Developer fees
Other income
Total revenues
Expenditures:
Current:
Community services
Total expenditures
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Variance Prior
Final Positive Year
Budget Actual (Negative) Actual
$ - 40,006
40,006
7,564
20,000 21,836
1,836
10,693
- -
-
25,000
- 378,493
378,493
916,384
- 49,273
49,273
113,000
20,000 489,608 469,608 1,072,641
2,042,279
689,827
1,352,452
453,169
2,042,279
689,827
1,352,452
453,169
(2,022,279) (200,219) 1,822,060 619,472
2,708,450 2,708,450 - 2,088,978
$ 686,171 2,508,231 1,822,060 2,708,450
121
1
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u
122
1 PROPRIETARY FUND TYPES
1.1
1
1
-1
Enterprise Funds account for operations that are financed and operated in a manner similar to
private business enterprises.
Simulator Fund — This fund accounts for sales and expenses related to the Police
Department's driving and firearm simulator programs, which are marketed to both public and
private agencies.
Computer Service Fund — This fund accounts for sales and expenses related to the computer
services provided by the Police Department to other public safety agencies.
Internal Service Funds are used to account for the financing of goods or services provided by one
department to other departments of the City on a cost reimbursement basis.
Fleet Management Fund — This fund provides maintenance on, materials and supplies for, and
replacement of City vehicles and other gasoline or diesel powered equipment.
Self -Insurance Fund — This fund accounts for the use of funds that are charged to departments
for the administration and payment of claims under the City's self -insured general liability
and workers' compensation programs.
123
CITY OF WEST COVINA
Enterprise Funds
Combining Statement of Net Assets
June 30, 2005
Assets
Current assets:
Cash and investments
Receivables:
Interest
Due from other agencies
Prepaids and other assets
Total current assets
Capital assets:
Other capital assets
Less accumulated depreciation
Capital assets, net
Total assets
Liabilities:
Current liabilities:
Accounts payable
Other accrued liabilities
Due to other funds
Current portion of compensated
absences payable
Total current liabilities
Non -current liabilities:
Compensated absences payable
- Total liabilities
Net assets:
Invested in capital assets
Unrestricted
Total net assets (deficit)
Computer
Simulator ' Service
Totals
2005 2004
$ - 2,021,785
2,021,785
2,363,859
- 5,995
5,995
3,856
- 32,025
32,025
163,258
- 720
720
-
- 2,060,525
2,060,525
2,530,973
- 731,949 731,949 1,218,874
595,012 595,012 759,999
- 136,937 136,937 458,875
- 2,197,462 2,197,462 2,989,848
30,069 30,069 154,191
54,339 54,339 24,348
- - - 558,573
24,708 24,708 19,940
109,116 109,116 757,052
- 118,791 118,791 81,564
- 227,907 227,907 838,616
136,937 136,937 458,875
1,832,618 1,832,618 1,692,357
$ - 1,969,555 1,969,555 2,151,232
124
CITY OF WEST COVINA
Enterprise Funds
Combining Statement of Revenues, Expenses and Changes in Net Assets
Year ended June 30, 2005
Operating revenues:
Charges for services
Total operating revenues
Operating expenses:
Personnel services
Cost of sales, services
and operations
Depreciation
Total operating expenses
Operating income (loss)
Nonoperating revenues (expenses):
Investment income
Total nonoperating
revenue (expenses)
Income (loss) before transfers
Transfers in
Transfers out
Change in net assets
Net assets (deficit) at beginning of year
Net assets at end of year
Computer Totals
Simulator Service 2005 2004
$ - 1,992,662 1,992,662 2,245,902
1,992,662 1,992,662 2,245,902
- 1,257,939 1,257,939 1,032,788
- 916,076 916,076 1,168,554
- 38,787 38,787 63,081
- 2,212,802 2,212,802 2,264,423
220,140 (220,140) (18,521
38,600 38,600 21,268
38,600 38,600 21,268
- (181,540) (181,540) 2,747
249,863 - 249,863 -
- 250,000 250,000 250,000
249,863 (431,540) (181,677) (247,253)
249,863 2,401,095 2,151,232 2,398,485
$ - 1,969,555 1,969,555 2,151,232
125
CITY OF WEST COVINA
Enterprise Funds
Combining Statement of Cash Flows
Year ended June 30, 2005 '
Cash flows from operating activities:
Cash received from customers
Cash payments to suppliers
for goods and services
Cash payments to employees for services
Net cash provided by (used for)
operating activities
Cash flows from noncapital fmancing activities:
Cash received from other funds
Cash provided to other funds
Net cash provided by (used for)
noncapital financing activities
Cash flows from capital and
related financing activities:
Cash paid for acquisition of capital assets
Net cash proved by (used
for) capital and related
financing activities
Cash flows from investing activities:
Interest received on investments
Net cash provided by (used for)
investing activities
Net increase (decrease) in cash
and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
'
Computer
Totals
Simulator
Service
2005
2004
i
$ 18,909
2,104,986
2,123,895
2,092,245
'
(7,627)
(1,033,291)
(1,040,918)
(1,150,830)
(998)
(1,184,955)
(1,185,953)
(1,015,786)
i
10,284
(113,260)
(102,976)
(74,371)
'
-
-
-
135,286
(10,284)
(250,000)
(260,284)
(250,000)
(10,284) (250,000) (260,284) (114,714)
- (15,275)
(15,275)
(138,780)
'
- (15,275)
(15,275)
(138,780)
,
- 36,461
36,461
23,510
i
- 36,461
36,461
23,510
'
- (342,074)
2,363,859
(342,074)
2,363,859
(304,355)
2,668,214
-
$ - 2,021,785
2,021,785
2,363,859
(Continued)
126 1
1
1
1
1
1
1
1
1
1
1
1
CITY OF WEST COVINA
Enterprise Funds
Combining Statement of Cash Flows
(Continued)
Reconciliation of operating income (loss)
to net cash provided by (used for)
operating activities:
Operating income (loss)
Adjustments to reconcile operating
income (loss) to net cash provided
by (used for) operating activities:
Depreciation
(Increase) decrease in accounts receivable
(Increase) decrease in due
from other agencies
(Increase) decrease in prepaids
and other assets
Increase (decrease) in accounts payable
Increase (decrease) in other accrued liabilities
Increase (decrease) in compensated
absences payable
Total adjustments
Net cash provided by (used for)
operating activities
Noncash capital, financing
and investing activities:
Change in fair value of investments
Total noncash capital, financing
and investing activities
Computer
Simulator Service
Totals
2005 2004
$ - (220,140) (220,140) (18,521)
- 38,787 38,787 63,081
18,909 112,324 131,233 (153,657)
(720)
(7,627) (116,495)
(998) 30,989
(720) -
(124,122) 17,724
29,991 1,038
- 41,995 41,995 15,964
10,284 106,880 117,164 (55,850)
$ 10,284 (113,260) (102,976) (74,371)
$ - - - (13,507)
$ - - - (13,507)
127
CITY OF WEST COVINA
Internal Service Funds
Combining Statement of Net Assets
June 30, 2005
Assets
Current assets
Cash and investments
Receivables:
Accounts
Interest
Inventory
Prepaid items
Total current assets
Capital assets:
Construction in progress
Other capital assets
Less accumulated depreciation
Capital.assets, net
Total assets
Liabilities and Net Assets
Liabilities:
Current liabilities:
Accounts payable
Other accrued liabilities
Due to other funds
Current portion of
compensated absences
Total current liabilities
Non -current liabilities:
Claims and judgments
Compensated absences payable
Total long-term liabilities
Total liabilities
Net assets:
Invested in capital assets
Unrestricted
Total net assets
Fleet Self-
Totals
Management Insurance
2005
2004
$ - 6,359,926
6,359,926
5,686,647
- 70,339
70,339
53,820
- 18,061
18,061
7,715
83,565 -
83,565
67,540
- 21,250
21,250
1,409
83,565 6,469,576 6,553,141 5,817,131
4,353
- 4,353
18,648
4,060,734
- 4,060,734
4,195,260
2,731,392
- 2,731,392
2,622,477
1,333,695
- 1,333,695
1,591,431
1,417,260
6,469,576 7,886,836
7,408,562
121,272
139,011
260,283
75,600
9,431
1,925
11,356
8,316
53,792
-
53,792
24,241
42,252
27,347
69,599
15,306
226,747
168,283
395,030
123,463
-
5,616,313
5,616,313
4,816,938
10,851
5,061
15,912
65,962
10,851
5,621,374
5,632,225
4,882,900
237,598
5,789,657
6,027,255
5,006,363
1,333,695
-
1,333,695
1,591,431
154,033
679,919
525,886
810,768
$ 1,179,662
679,919
1,859,581
2,402,199
128
'
CITY OF WEST COVINA
Internal Service Funds
1
Combining Statement
of Revenues, Expenses and Changes
in Net Assets
Year ended June 30,
2005
Fleet
Self-
Totals
Management
Insurance
2005
2004
Operating revenues:
1
Charges for services
Other revenues
$ 1,150,266
5,120
3,471,210
-
4,621,476
5,120
4,309,826
1,548
Total operating revenues
1,155,386
3,471,210
4,626,596
4,311,374
Operating expenses:
1
Personnel services
Cost of sales, services
460,498
251,500
711,998
654,989
and operations
768,591
323,704
1,092,295
1,178,517
'
Depreciation
248,255
-
248,255
203,861
Insurance and claims paid
3,195,968
3,195,968
745,525
Total operating expenses
1,477,344
3,771,172
5,248,516
2,782,892
Operating income (loss)
321,958
299,962
621,920
1,528,482
'
Nonoperating revenues (expenses):
Investment income
-
89,462
89,462
26,204
Gain (loss) on sale of asset
10,160
-
10,160
-
Total nonoperating
'
revenues (expenses)
10,160
89,462
79,302
26,204
Change in net assets
(332,118)
(210,500)
(542,618)
1,554,686
Net assets (deficit) at
beginning of year
1,511,780
890,419
2,402,199
847,513
Net assets at end of year
$ 1,170,662
679,919
1,859,581
2,402,199
CITY OF WEST COVINA .
Internal Service Funds
Combining Statement of Cash Flows '
Year ended June 30, 2005
Cash flows from operating activities:
Cash received from user
departments
Cash payments to suppliers
for goods and services
Cash payments to employees
for services
Net cash provided by (used for)
operating activities
Cash flows from noncapital financing activities:
Cash received from other funds
Net cash provided by (used for)
noncapital financing activities
Cash flows from capital and
related financing activities:
Cash paid for acquisition
of capital assets
Net cash proved by (used for) capital
and related financing activities
Cash flows from investing activities:
Interest received on investments
Net cash provided by (used for)
investing activities
Net increase (decrease) in cash
and cash equivalents
Cash and cash equivalents at
beginning of year
Cash and cash equivalents at end of year
Fleet
Self-
Totals
Management
Insurance
2005
2004
$ 1,155,386
3,454,691.
4,610,077
4,262,221
'
(727,793)
(2,612,278)
(3,340,071)
(3,019,465)
456,465
248,250
704,715
657,526
(28,872)
594,163
565,291
585,230
29,551
-
29,551
247241
29,551
-
29,551
24,241
(679)
-
(679)
(15,856)
(679)
-
(679)
(15,856)
-
79,116
79,116
27,517
,
-
79,116
79,116
27,517
-
673,279
673,279
621,132
'
-
5,686,647
5,686,647
5,065,515
'
$ -
6,359,926
6,359,926
5,686,647
(Continued)
'
. 130
'
CITY OF WEST COVINA
Internal Service Funds
Combining Statement of Cash Flows
(Continued)
Fleet
Self-
Totals
Management
Insurance
2005
2004
Reconciliation of operating income (loss)
to net cash provided by (used for)
operating activities:
Operating income (loss)
$ (321,958)
(299,962)
(621,920)
1,528,482
Adjustments to reconcile operating
income (loss) to net cash provided
by (used for) operating activities:
Depreciation
248,255
-
248,255
203,861
(Increase) decrease in
accounts receivable
-
(16,519)
(16,519)
(49,153)
(Increase) decrease in inventory
(16,025)
-
(16,025)
(801)
(Increase) decrease in prepaids
and other assets
-
(19,841)
(19,841)
(289)
Increase (decrease)in
accounts payable
56,823
127,860
184,683
(50,574)
Increase (decrease) in other
accrued liabilities
1,115
1,925
3,040
(5,202)
Increase (decrease) in
compensated absences
2,918
1,325
4,243
2,665
Increase (decrease) in claims
and judgements payable
-
799,375
799,375
(1,043,759)
Total adjustments
293,086
894,125
1,187,211
(943,252)
Net cash provided by (used for)
operating activities $ (28,872) 594,163 565,291 585,230
Noncash capital, financing and investing activities:
Change in fair value of investments $ - - - (27,023)
Total noncash capital, financing
and investing activities $ - - - 27,023
131
(This page intentionally left blank.)
L
7
132 1
IAGENCY FUND
1
Agency Funds account for monies held by the City in a trustee capacity as an agent for
individuals, private organizations and other governmental units. The City's Agency Funds are as
follows:
' Special Deposit Fund — This fund is used to account for developer funds placed on deposit with
the City pending either a return to the depositor or disbursement by the City on behalf of the
depositor to pay for studies and other developer expenses.
I
1
133
CITY OF WEST COVINA
Agency Fund
Combining Statement of Changes in Assets and Liabilities
Year ended June 30, 2005
Balance at
July 1, 2004
SPECIAL DEPOSITS AGENCY FUND
Assets
Cash and investments $ 714,936
Accounts receivable -
Total assets
Liabilities
Accounts payable
Deposits
Total liabilities
$ 714,936
$ 4,917
710,019
$ 714,936
Additions
2,180,923
2,817
2,180,923
273,456
2,188,935
2,462,391
Balance at
Deletions June 30, 2005
(2,143,679) 752,180
2,817
(2,143,679) 752,180
(235,856)
42,517
(2,186,474)
712,480
2,422,330
754,997
134
TABLE 1
CITY OF WEST COVINA
General Governmental Expenditures by Function
Governmental Funds
'
Last Ten Fiscal Years
Fiscal
General Public
Public Community Community Capital
Debt
Year
Government Safety
Works Services Development Projects (1)
Service
Total
1996
1,958,427 22,361,059
7,741,179 5,416,709 - 14,459,337
13,863,911
65,800,622
'
1997
1,488,759 22,148,157
8,847,164 5,862,762 - 11,867,639
17,233,507
67,447,988
1
1998
1,706,519 23,907,910
8,499,865 6,338,264 - 8,664,220
22,295,552
71,412,330
1999
2,344,094 24,562,922
7,837,979 6,482,884 - 9,668,232
18,837,949
69,734,060
2000
2,730,824 24,469,555
7,722,311 7,044,537 - 12,329,765
16,174,910
70,471,902
2001
2,587,892 27,072,613
.8,372,692 7,004,077 - 9,737,181
16,839,536
71,613,991
2002
1,931,880 27,736,148
9,179,503 7,659,147 9,590,608 6,780,200
14,106,547
76,984,033
2003
3,531,297 29,767,232
13,504,313 11,135,311 9,847,010 -
13,161,503
80,946,666
1
2004
2,288,433 34,037,594
13,589,731 8,036,436 .8,814,434 -
13,539,262
80,305,890
2005
2,926,412 37,643,249
12,937,191 8,3379754 5,229,820 -
14,919,717
81,994,143
(1)
Beginning July 1, 2002, Capital Projects expenditures are allocated to their respective functions.
Note:
Certain reclassifications have
been made to prior years' expenditures as a result of changes in
expenditure presentation for fiscal year ended June 30, 2003.
Source:
City of West Covina Finance
Department
I
135
CITY OF WEST COVINA
General Governmental Revenues by Source
Governmental Funds
Last Ten Fiscal Years*
Licenses
Fines
Fiscal
Property
Other
Special
and
and
Investment
Year
Taxes
Taxes
Assessments
Permits
Forfeitures
Income
1996
15,453,895
21,466,894
5,381,926
7611463
459,409
7,611,088
1997
12,108,033
22,347,176
5,055,302
864,728
463,156
7,196,708
1999
13X0,111
25,600,178
3,405,007
1,109,001
519,122
12,181,027
1999
151478,893
19,209,424
3,264,484
931,232
1,062,420
10,158,745
2000
15,069,399
22,860,669
3,260,903
1,021,542
1,244,799
9,697,606
2001 `
15;850,765
23,444,816
3,455,468
1,003,283
1,223,214
13,131,474
2002
18,809,181
21,859,698
4,891,551
1,103,637
1,173,829
9,05%113
2003
20,354,717
21,161,826
3,532,950
1,101,778
1,219,531
8,790,949
2004
19,857,793
25,759,757
3,31106
1,426,191
1,410,536
3,564,751
2005
20,963,270
28,083,720
3,448,956
1,046,759
1,264,600
8,239,221
(1) Program note and loan repayments were previously included in other revenues.
(2) Rental income was previously included in investment income.
Source: City of West Covina Finance Department
Mrsim
TABLE 2
Revenue
Charges
Program
Rental
from other
for
Note and Loan
Other
Income
Agencies
Services
Repayments
Revenues
Total
-
8,458,459
1,496,048
-
2,483,647
63,572,829
-
6,229,963
1,577,094
-
6,557,580
62,399,740
-
7,156,688
1,317,260
-
1,922,342
66,260,736
- (2)
6,813,301
1,504,520
-
24,844,263
83,267,282
475,000
9,179,721
1,568,030
-
4,124,551
68,502,220
412,465
8,941,925
1,442,785
-
950,990
69,857,185
427,424
9,742,749
1,560,148
-
3,529,909
72,157,239
436,755
11,598,309
1,861,498
4,534,914 (1)
1,259,634
75,852,861
593,486
10,603,584
2,279,000
1,877,550
2,539,926
73,224,470
589,564
12,052,408
3,533,169
2,336,958
2,895,657
84,454,282
137
TABLE 3
'
CITY OF WEST COVINA
Other Tax Revenues by Source
Governmental Funds
Last Ten Fiscal Years
,
Transient
Property
Fiscal
Year
Sales
Taxes
Franchise
Taxes
Occupancy
Taxes
Business BKK License
License Taxes
Transfer
Taxes
Construction
Taxes
Other
Total
1996
10,441,482
1,969,694
582,650
989,11.2 4,442,763
145,637
457,275
2,438,281
21,466,894
,
1997
12 899 111
1,870,425
634,009
1,005,368 1,034,977
161,838
453,575
4,287,873
223347,176
1998
12,541,053
1,946,611
636,336
798,431 -
170,910
235,314
9,271,523
25,600,178
1999
11,621,098
2,045,257
678,100
856,018 -
203,324
167,283 _
3,638,344
19,209,424
2000
13,063,142
1,967,899
739,055
920,292 -
191,543
190,260
5,788,478
22,866,669
2001
12,050,401
2,109,447
832,327
960,551 -
233,679
263,262
6,995,149
23,444,816
,
2002
12,930,742
2,182,548
784,737
881,331 -
293,525
224,585
5,872,847
23,170,315
324,066
229,858
3,634,206
21,163,826
2003
12,277,824
.2,425,160
822,755
1,449,957 -
2004
17,672,466
2,617,462
853,776
1,343,242 -
436,026
592,178
2,244,607
25,759,757
2005
18,004,219
2,870,211
912,740
1,449,406 -
553,942
346,491
3,946,712
28,083,720
i
Source:
City of West Covina Finance Department
,
138
TABLE 4
CITY OF WEST COVINA
Property Tax Levies and Collections
P
'
Last Ten Fiscal Years
Ratio of
Fiscal Year
Total Current Percent Delinquent
Total
Total
Ending
Tax Tax of Levy Tax
Tax
Collections
June 30
Levy Collection Collected Collections
Collections
to Lew
'
1996
4,485,939 3,954,105 88.1% 139,448
4,093,553
91.3%
1997
4,497,904 4,103,730 91.2% 187,019
4,290,749
95.4%
1998
4,474,200 4,176,518 3.3° 73,842
4,250,360
95.0%
1
1999
4,593,230 4,299,907 93.6% (63,181)
4,236,726
92.2%
2000
4,800,590 4,507,903 93.9% (103,451)
4,404,452
91.7%
2001
5,013,366 4,784,660 95.4% (16%430)
4,615,230
92.1%
2002
5,490,462 5 168,577 94.1% 258,169
4,910,408
89.4%
I2003
5,604,199 ' 5,307,176 94.7% 61,647
.5,368,823
95.8%
2004
6,120,235 5,826,025 95.2% 76,492
5,902,517
96.4%
2005
6,228,741 5,637,051 90.5% . 63,827
5,700,878
91.5%
Note:
Under Proposition 13, passed by voters in the State of California in June
1978, the tax
rate, excluding Bonded Debt, is frozen at 1% of full cash value of property. This tax is
collected by the County Tax Collector and distributed on a formula determined by the
State Legislature. The local agencies can only levy
the tax rates
for bonded
'
indebtedness authorized prior to July 1, 1978, or in excess of 1% if two-thirds
of voters
in the area authorize such a rate increase.
Tax collections exclude Homeowners' and Business Inventory Exemptions, property
tax reimbursements and penalties on delinquent taxes.
Source:
City of West Covina Finance Department
139
,
TABLE 5
CITY OF WEST COVINA
'
Assessed Valuations of Taxable Property
Last
Ten Fiscal Years
State Assessed
Locally Assessed
Less
Net
Fiscal
Real
Personal.
Real
Personal
Property
Taxable
Year
. Pro a
Pro e
Pro e
Property
Total
Exemptions
Value
1996
370,894
210
4,186,787,378
94,108,332
4,281,266,814
189,784,000
4,091,482,814
1997
370,712
180
4,277,849,793
85,336,520
4,363,557,205
160,037,091
4,203,520,114
1998
371,388
439
45498,056,897
109,179,782
4,607,608,506
213,081,439
4,394,5275067
1999
371,388
439
4,406,885,338
200,351,341
4,6075608,506
97,999,059
4,509,609,447.
,
2000
370,822
300
4,619,782,508
237,393,452
4,857,547,082
113,336,576
4,744,2105506
2001
370,729
277
4,795,6375429
197,367,764
4,993,376,199
86,107,093
4,90752695106
2002
370,836
304
5,081,9655904
245,527,343
5,327,864,387
128,6995728
5,199,164,659
2003
370,791
292
5,428,091,055
228,619,227
5,657,081,365
132,460,096
5,5247621,269
2004
1;387,360
334
55847,275,020
234,4605844
6,083,123,558
127,293,421
5,955,830,137
,
2005
463,697
41 7
6 274 413 745
229 491 394
6 504 369 253
159 992 188
6 344 377 065
,
Source:
Los Angeles County Assessor's office
140 - ,
'
TABLE 6
CITY OF WEST COVINA
Property yTax Rates - Direct and Overlapping Governments
'
Last Ten Fiscal Years (per $100 of Assessed Value)
(Tax Rate Area 9495)
Los Metropolitan County Flood
Fiscal Angeles School Water Control
Year Coun Districts Districts District
Total
1996 1.0017 - 0.0132 0.0097
1.0246
'
1997 1.0016 - 0.0089 0.0020
1.0125
1998 1.0016 - 0.0089 0.0022
1.0127
1999 1.0014 - .0.0089 0.0020
1.0123
2000 1.0014 - 0.0089 0.0018
1.0121
'
2001
0 1.0013 0.0273 0.0088 0.0016
1.0390
t2002
1.0011 0.0524 0.0077 0.0011
1.0623
2003 1.0010 0.0798 0.0067 0.0009
1.0884
2004 1.0010 0.0508 0.0061 0.0005
1.0584
i2005
1.0009 0.0578 0.0058 0.0002
1.0647
The City of West Covina has approximately 200 tax rate areas during the year ended June 30,
2004. The tax rates in these areas varied from 1.02% to 1.3% of assessed valuation.
Tax Rate.
Area 9495 is the largest, representing about 20% of the total assessed valuation.
Proposition 13 eliminated the property tax rate for cities exclusive of voter approved bonded
indebtedness for which a rate may be established for debt service on general obligation bonds
authorized prior to July 1, 1978.
Source: Los Angeles County Tax Rates Books
141
HYR.03aM
CITY OF WEST COVINA
Special Benefit Assessment Levies and Collections
Last Ten Fiscal Years
Current
Percentage
Fiscal
Assessment
Assessments .
Collected
Year
Lew
Collected
Currently
1996
8,324,688
7,947,121
95.5%
1997
5,170,606
4,749,822
91.9%
1998
5,912,950
5,770,582
97.6%
1999
4,945,363
4,820,641
97.5%
2000
4,938,185
4,773,305
96.7%
2001
5,2549446
5,084,770
96.8%
2002
4,935,305
49784,684
96.90X6
2003
5,219,250
4,942,630
94.7%
2004
59875,620
5,664,098
96.4%
2005
59769,860
59285,192
91.6%
Source: Los Angeles County Assessor's office
142
TABLE 8
CITY OF WEST COVINA
Computation of Legal Debt Margin
June 30, 2005
Total Assessed Valuation
Debt Limit - 3.5 % of Total Assessed Valuation
Amount of Debt Applicable to Debt Limit
Legal Debt Margin
$ 6,344,377,065
222,053,197
222,053,197
Source: City of West Covina Finance Department
143
I�
TABLE 9 '
CITY OF WEST COVINA
Schedule of Direct and Overlapping Bonded Debt
June 30, 2005 '
2004/05 Assessed Valuation: $6,344,377,065
Redevelopment Incremental Valuation: 1,208,382,607
Adjusted Assessed Valuation: $5,135,994,458
OVERLAPPING TAX AND ASSESSMENT DEBT:
% Applicable
Debt 6/30/05
Los Angeles County
0.765%
$ 122,510
Los Angeles County Flood Control District
0.782
953,102
Metropolitan Water District
0.387
1,623,039
Mount Sari Antonio Community College District
13.051
13,415,775
Baldwin Park Unified School District
0.403
154,156
Bassett Unified School District
0.039
4,822
Covina Valley Unified School District
32.214
14,754,012
Hacienda -La Puente Unified School District
1.604
1,553,203
Rowland Unified School District
19.277
12,811,231
,
Walnut Valley Unified School District
0.989
869,061
West Covina Unified School District
93.981
35,726,877
West Covina Community Facilities District No. 1989-1
100.000
43,350,000
Los Angeles County Regional Park and Open Space Assessment District
0.756
2,643,656
TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT
$127,981,444
DIRECT AND OVERLAPPING GENERAL FUND OBLIGATION DEBT:
Los Angeles County General Fund Obligations
0.756%
$ 10,504,242
Los Angeles County Pension Obligations
0.756
7,938,736
Los Angeles County Superintendent of Schools Certificates of Participation
0.756
179,674
Los Angeles County Sanitation District No. 15 Authority
2.269
990,545
Los Angeles County Sanitation District No. 21 Authority
3.157
812,346
'
Los Angeles County Sanitation District No. 22 Authority
21.103.
4,694,899
Baldwin Park Unified School District General Fund Obligations
0.403
113,102
Covina Valley Unified School District Certificates of Participation
32.214
5,355,578
Hacienda -La Puente Unified School District Certificates of Participation
1.604
68,892
City of West Covina General Fund Obligations
100.000
44,880,000
Walnut Valley Water District Authority
2.388
381,961
San Gabriel Valley Mosquito Abatement District Certificates of Participation
7.504
75,415
TOTAL GROSS DIRECT AND OVERLAPPING GENERAL FUND OBLIGATION DEBT
$ 75,995,390
Less: Los Angeles County Certificates of Participation (100% self-supporting
from leasehold revenues on properties in Marina Del Rey)
Walnut Valley Water District Authority
418,408
381,961
TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND OBLIGATION DEBT
$ 75,195,021
GROSS COMBINED TOTAL DEBT
$ 203,976,834 (1)
NET COMBINED TOTAL DEBT
$ 203,176,465
'
(1) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and
tax allocation bonds
and non -bonded
capital lease obligations.
,
Ratios to 2004-05 Assessed Valuation:
Total Overlapping Tax and Assessment Debt........... 2.02%
Ratios to Adiusted Assessed Valuation:
,
Combined Direct Debt ($44,880,000) ................... 0.87%
Gross Combined Total Debt.....................................3.97%
Net Combined Total Debt.........................................3.96%
: STATE SCHOOL BUILDING AID REPAYABLE AS OF 6/30/0 5 $0
Source: California Municipal Statistics, Inc.
'
144
CITY OF WEST COVINA
Demographic hic Statistics
�
'
Last Ten Fiscal Years
Fiscal
Housing
'
Year
Population (1) Units (1)
'
1996
101,906 32,716
1997
103,422 32,819
1998
104,801 32,897
1999
106,500 33,055
2000
107,631 31,941
2001
109,029 32,384
2002
.109,083 32,461
2003
110,515 32,533
2004
111,404 32,533
2005
112,417 32,602
Source: (1)
U.S. Department of Census and State Department of Finance
(2)
.State Employment Development Department
145
Unemployment
Rate (2)
7.9
4.6
4.5
4.2
3.8
4.2 .
3.9
4.6
3.8
4.8
'
TABLE 11
CITY OF WEST COVINA
Property yValue, Construction,
and Bank Deposits
Last Ten Fiscal Years
,
(In Thousands)
Commercial
Residential
Bank
Property Value (1)
Construction (2)
Construction (2)
Deposits (3)
Fiscal
Number
Value
Number
Value
Year
Commercial
Residential Exemptions
Total
of Units In $000's
of Units In $000's
'
1996
868,423
3,412,844 189,754
4,091,513
6
17,492
76
20,892
1,455,243
1997
877,777
3,485,780 ' 160,037
4,203,520
13
33,074
103
27,782
1,462;709
1998
910,553
3,704,279 220,305
4,394,527
4-
17,118
78
313698
1,552,827
1999
909,796
3,934,093 213,081
4,630,808
32
13,756
158
25,552
1,415,558
'
2000
1,494,855
3,649,021 226,739
4,917,137
20
15,922
209
22,714
1,440,431
2001
1,395,852
3,817,109 .198,093
5,014,868
27
11,554
102
44,738
1,532,091
.2002
1,307,164
4,020,701 128,700
5,199,165
9
18,543
- 72
31,779
1,681,689
2003
1,316,056
4,341,025 132,460
5,524,62.1
9
15,946
138
28,127
1,841,005
2004
1,337,181
4,745,942 127,293
5,955,830
5
9,42.0
156
53,197
1,992,474
2005
1,392,586
5,111,783 159,992
6,344,377
10.
13,266
23
25,036
* Not available at time of printing.
,
Source: (1) Los An Assessor's Office
Angeles County
(2) City of West Covina
,
(3) The Findley Reports, Inc.
146
U
'
Type of Coverage
TABLE 12
CITY OF WEST COVINA
Schedule of Insurance in Force
June 30, 2005
Policy Period
From To Details of Coverage
LIABILITY
'
General and Auto Liability
7/l/2004 7/l/2005 Bodily injury, property damage, personal injury,
and/or public official's errors and omissions,
$10,000,000 limit less self -insured retention,
'
excess $1 million pooled layer.
Self-Insured's Retention: $500,000
'
WORKERS' COMPENSATION
Excess Workers' Compensation
7/1/2004 7/l/2005 Worker's compensation statutory.
Employer's liability, $5,000,000 pooled layer
Self -Insured Retention: $500,000
PROPERTY
Commercial Property Insurance
7/1/2004 7/l/2005 "All Risks" of direct physical loss or damage,
Building and contents
including earthquake and flood, to all real
and personal property.
Limit: $63,325,353
Deductible $25,000
Electronic Data Processing
2/12/2005 2/12/2006 Limit: - $1,530,397 for Electronic Data Processing
Equipment Floater
Equipment, Media, and Extra Expense.
Deductible: $1,000 with 5% of value for
earthquake/flood subject to $50,000 minimum
per. occurrence.
'
Contractor's Equipment Floater
11/17/2004 11/17/2005 Limit: $1,084,069 for all risks of direct physical loss
or damage excluding flood and earthquake.
BONDS
Deductible: $2,500 per occurrence, except business
income and extra expense.
Public Employee Blanket Bond
6/30/2004 6/30/2005 Limit: $10,000 per employee for loss sustained by
fraudulent or dishonest acts; subject to a $500
deductible.
Public Officials Bond
5/l/2005 5/l/2006 Limit: $100,000 for City Treasurer for faithful
performance
■ Source: City of West Covina Risk Management Department
147
CITY OF WEST COVINA
Principal Taxpayers
June 30, 2005
2004-05
Assessed
Taxpayer Business Valuation
TABLE 13
Percentage
of Total Net
Assessed
Plaza West Covina LLC
Regional Shopping Mall
169,151,619
2.67%
Eastland Shopping Center LLC
Eastland Shopping Center
85,913,842
1.35%
Hassen Imports Partnership
Auto Dealerships
47,019,668
0.74%
Eastland Tower Partnership
Office Building
31,650,000
0.50% .
Pried XIV Trust
Theatre Complex
24,699,156
0.39% :
West Covina Lakes Associates
Office Buildings
21,900,000
0.35%
851 S. Sunset Avenue Apartments LLC
Residential Development
22,540,862
0.36%
Sears Development Company
Department Store
16,951,811
0.27%
Pleasant Hill Partners
Shopping Center
16,518,533
0.26%
WCPP Limited
Shopping Center
14,805,623
0.23%
$ 451,151,114
8.62%
Source: City of West Covina Finance Department
148
CITY OF WEST COVINA
Miscellaneous Statistics
June 30, 2005
' Date of Incorporation
Form of Government
Registered Voters
Area
Miles of streets
' Fire r to ti p o con:
Number of stations
Number of firefighters and officers
1 Police protection:
Number of stations
Number of sworn officers
Public education facilities:
Elementary schools
Junior high schools
High schools
' Adult schools
Sewers and drains:
Sanitary sewers
Storm drains
Recreation and culture:
Number of park sites
Number of community centers
tNumber of libraries
Full-time City employees
Population
Source: City of West Covina Finance Department
' State Department of Finance
149
TABLE 14
February 23, 1923
Council/Manager
43,068
17 square miles
230
5
77
2
122
13
3
3
1
233 miles
42 miles
15 with 181.3 acres
4
1
431
112,417
(This page intentionally left blank.)
150