Alhambra City Council
February 28, 2022

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C I T Y O F A L H A M B R A

NOTICE OF REGULAR MEETING
OF THE

ALHAMBRA CITY COUNCIL

(Notice No. N2M22-24)

NOTICE IS HEREBY GIVEN that the regular meeting of the Alhambra City Council will be held on Monday, February 28, 2022, commencing at 6:00 p.m. in the Council Chambers of the Alhambra City Hall, 111 South First Street, Alhambra, California pursuant to the order of the Mayor of the City of Alhambra, the Alhambra City Charter, the Alhambra Municipal Code, and Sections 54955 and 54956 of the Government Code of the State of California.

Consistent with AB 361, the Alhambra City Council meeting will not be physically open to the public, although the public may participate by video conference or teleconference and some of the Council Members may choose to participate via video conference or teleconference rather than attend in person.

An agenda of such regular meeting is attached hereto incorporated herein by reference and made a part hereof as though fully set forth herein.

LAUREN MYLES, CMC

CITY CLERK

Dated: February 24, 2022
Notice No. N2M22-24

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CITY OF ALHAMBRA
AGENDA
FEBRUARY 28, 2022
CORONAVIRUS (COVID-19) ADVISORY NOTICE

Consistent with AB 361, the Alhambra City Council meeting will not be physically open to the public, although the public may participate by video conference or teleconference and some of the Council Members may choose to participate via video conference or teleconference rather than attend in person.

To watch and listen to the meeting: To maximize public safety while still maintaining transparency and public access, members of the public can participate by using Zoom Webinar as follows:

Zoom Webinar direct link:
https://cityofalhambra-org.zoom.us/j/86147186125?pwd=V09udFZrRUsvdjUrclBKWWtuYkllUT09 Webinar ID: 861 4718 6125, Passcode: 384565

Or by telephone by dialing (833) 548-0276 (Toll Free) or (833) 548-0282 (Toll Free) or (877) 853- 5257 (Toll Free) or (888) 475-4499 (Toll Free) or +1(669) 900-9128 or +1(253) 215-8782 or +1(346) 248-7799 or +1(301) 715-8592 or +1(312) 626-6799 or +1(646) 558-8656 and entering Webinar ID:
861 4718 6125 and Passcode: 384565. Please Note: All members of the public calling or logging into the meeting will be muted so that the meeting can proceed.

For those wishing to speak on an agenda or non-agendized item, you have 3 options for participation:

1) Pre-register to speak: Please email Van Nguyen at [email protected] by 5:00 p.m. prior to the meeting with the item number you wish to speak on and the phone number you will use when calling or the name you will use when logging into the meeting. You should then call or log into the meeting at least 10 minutes prior to its start time. Staff will unmute you and announce you when it is your time to speak. You will have five minutes to speak, unless that time is adjusted by the Mayor. If you do not have access to a computer, please call 626 -570-3248 to request public comment.

2) “Raise your hand”: For those members of the public that wish to speak but did not make a request via email as described above, such members of the public may speak by using the “Raise Hand” function during the public comments portion, if on Zoom. Staff will unmute you and announce you when it is your time to speak. If participating via telephone, the Mayor will ask anyone participating by telephone if they would like to speak after asking those on Zoom. Staff will unmute telephone callers and you may state you wish to speak.

3) Emailed comments to be read into the record: As an alternative to speaking during the meeting, you can email your comments to the City Clerk at [email protected] by no later than 5:00 p.m. on February 28, 2022 to ensure that the City Clerk has time to print the emails prior to the beginning of the meeting. Comments will then be read into the record by the City Clerk , with a maximum allowance of 5 minutes per individual comment, subject to the Mayor’s discretion. If a comment is received after 5:00 p.m. but before the conclusion of the meeting based upon its time stamp, the comment will still be included as a part of the record of the meeting but will not be read into the record.

Any member of the public who needs accommodations or who needs their comments translated should email or call the City Clerk at [email protected] or (626) 570-5090 who will use their best efforts to provide reasonable accommodations to provide as much accessibility as possible while also maintaining public safety.

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CITY OF ALHAMBRA
AGENDA
Regular Meeting

ALHAMBRA CITY COUNCIL
Council Chambers, 111 South First Street
February 28, 2022
6:00 p.m.

ROLL CALL:

COUNCIL: Maza, Maloney, Pérez, Andrade-Stadler, Lee

FLAG SALUTE: Led by Mayor Lee

CITY CLERK REPORT - NOTICE NO. N2M22-24

The City Clerk hereby reports that she duly gave notice of the regular meeting of the City Council being held this evening pursuant to the order of the Mayor in accordance with Section 54955 and 54956 of the Government Code of the State of California.

READING OF ORDINANCE TITLES

Government Code Section 36934 requires that all ordinances be read in full prior to City Council taking action on the ordinance. By listing the ordinance title on the Council agenda, Council may determine that the title has been read.

Recommended Action: By motion, determine that the titles to all ordinances which appear on this public agenda have been read, and waive further reading.

CEREMONIAL

1. A. REORGANIZATION: ALHAMBRA CITY COUNCIL – F2M22-25

In accordance with Alhambra City Charter Sec. 29, this is the time for the rotation of the Mayor, Vice Mayor, and Councilpersons of various departments. Each Councilperson will serve in the following office s for the period ending November 28, 2022:

Jeff Maloney Mayor & Councilperson of Public Affairs
Adele Andrade-Stadler Vice Mayor & Councilperson of Dept. of Finance Ross J. Maza Councilperson of Dept. of Public Works
Sasha Renée Pérez Councilperson of Dept. of Public Safety Katherine Lee Councilperson of Dept. of Supplies

(No action required by the City Council)

B. REORGANIZATION OF THE CITY COUNCIL CEREMONY – F2M22-25

In accordance with Alhambra City Charter Sec. 29, this is the time for the rotation of the Mayor and Vice Mayor. Accordingly, Vice Mayor Jeff Maloney and Councilmember Adele Andrade-Stadler shall become Mayor and Vice Mayor, respectively.

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REMARKS, RECOGNITIONS and ACKNOWLEDGEMENTS
by outgoing

MAYOR KATHERINE LEE

ADMINISTRATION of OATHS OF OFFICE by CITY CLERK
to incoming

VICE MAYOR ADELE ANDRADE-STADLER
Councilperson of the Fifth District

and to incoming

MAYOR JEFF MALONEY
Councilperson of the Third District

REMARKS, RECOGNITIONS and ACKNOWLEDGEMENTS
by

MAYOR MALONEY & VICE MAYOR ANDRADE-STADLER

PUBLIC HEARING

2. 2021-2022 REDISTRICTING PROCESS: PRE-FINAL MAP PUBLIC HEARING & UPDATE

Andrew Westall, Principal, Bear Demographics & Research will provide the City Council with an update on the 2021-2022 City Council redistricting process which takes place after each decennial census. This evening’s public hearing is focused on a presentation of a third Draft Map for new Council District boundaries in order to provide the Council an opportunity to provide input on additional Draft Maps and/or a Final Map. Draft Map Nos. 1 and 2 were presented to the City Council at the January 24, 2022 Council meeting. Draft Map No. 1 has an overall deviation of 8.0 percent, while Draft Map No. 2 has an overall deviation of 4.8 percent. Based on the City Council discussion at the January 24, 2022 meeting, the Council requested a third draft map. Dra ft Map No. 3 was presented to the City Council at the February 14, 2022 meeting and has an overall deviation of 7.4 percent.

Based on the City Council discussion on February 14, 2022, the Council requested a fourth draft map. This public hearing is focused on a presentation of a Draft Map No. 4 for new Council District boundaries in order to provide the Council an opportunity to provide input on a Final Map. Draft Map No. 4 has an overall deviation of 6.3 percent. All Draft Maps are within the legal standar d for overall deviation. Draft Map No. 4 was published on the City’s website on February 18, 2022 in conformance with the California Fair Maps Acts prior to the February 28, 2022 City Council meeting.

Recommended Action: City Council take the following actions:

1. Receive the staff report and presentation; and,

2. Conduct a public hearing to obtain public input; and,

3. Select and vote on a Final District Map for adoption.

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PRESENTATIONS

3. 2021 CITY ACCOMPLISHMENTS REPORT - F2M18-35
Staff will outline the 2021 Accomplishments Report which highlights many of the past year’s achievements. The accomplishments align with the City’s Strategic Plan, which is prioritized to reflect the community’s core values. The Report is intended to heighten community awareness of new and ongoing activities and projects.

Recommended Action: City Council receive and file the informational report.

4. MID-YEAR BUDGET REVIEW FOR FISCAL YEAR 2021-2022 – F2M21-17, R2M22-13

On June 14, 2022, the City Council adopted the FY 2021-22 Budget, which appropriated funds and approved revenue projections for the fiscal year. It was anticipated that the City would be in a better position in FY 2021 -22, rapidly recapturing the benefits of the post pandemic recovery. FY 2021-22 marks the return of a more normal budget with service levels at pre -pandemic levels as the State and C ounty continue to ease public health restrictions. Staff is presenting a Mid-Year Budget Review to provide a budget update and assessment of the continued impacts of COVID-19 on FY 2021-22.

Recommended Action: City Council receive and file the Mid -Year Budget Review and related reports; and, adopt Resolution No. R2M22-13 entitled: A Resolution of the Alhambra City Council adopting Fiscal Year 202 1-22 Budget adjustments of the City of Alhambra, Golf Course Clubhouse Corporation, Alhambra Capital Improve ments Corporation, Alhambra Parking Authority, Alhambra Facilities Financing Authority and the Alhambra Public Financing Authority

5. DISCUSSION REGARDING ALLOCATION OF FUNDS FOR A SMALL BUSINESS ASSISTANCE GRANT PROGRAM – F2M20-33

On January 24, 2022, the City Council received staff recommendations subject to the allocation of projects under the American Rescue Plan Act (ARPA) of 2021. As part of Alhambra’s overall ARPA discussion, comments from the public and the Alhambra Chamber of Commerce ensued to consider a Small Business Assistance Grant Program to help support the Alhambra small business community, which continues to be negatively affected from COVID-19. Staff will present information regarding the allocation of federal emergency funds specific to COVID -19 under CDBG -CV (CDBG Coronavirus) that are currently available under the City’s Emergency Housing Assistance Program (unspent in the amount of $150,000, approximately) as a possible source of funding for the creation of a Small Business Assistance Grant Program.

Recommended Action: City Council review information pertaining to the establishment of a Small Business Assistance Program in response to the COVID -19 pandemic and provide direction.

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CONSENT AGENDA (Item Nos. 6 - 22)

All items listed under the Consent Agenda are considered by the City Council to be routine and will be enacted by one motion unless a citizen or Council member requests otherwise; in which case, the item will be removed for separate consideration.

6. RESOLUTION REAUTHORIZING THE CITY COUNCIL AND THE CITY’S BOARDS

AND COMMISSIONS TO IMPLEMENT TELECONFERENCE ACCESSIBILITY FOR CONDUCTING PUBLIC MEETINGS PURSUANT TO AB 361 – F2M20-33, R2M22-14

During COVID, the City has conducted meetings offering teleconferencing accessibility to members of the public, City Council, members of City boards and commissions, City staff and consultants. The executive orders authorizing such meetings lapsed on September 30, 2021, replaced with legislation in the form of AB 361. AB 361 was signed into law by the Governor on September 16, 2021, which went into effect immediately as urgency legislation (codified under Government Code § 54953), and waived certain provisions of the Brown Act in order to allow local agencies to continue to meet remotely. Specifically, the bill allows remote teleconference flexibility, but only when there is a state of emergency that makes it unsafe to meet in person. The City has already implemented the requirements of AB 361 for conducting public meetings and is in full compliance, thus there will be no change of the currently established procedures. The Council made the necessary findings for the conduct of teleconferenced accessible meetings via Resolution No. R2M21-42 adopted on October 25, 2021. The proposed Resolution again makes the required findings under AB 361, and if adopted, it will allow the City to continue to offer teleconference accessibility for public meetings, to help mitigate the spread of COVID-19, as well as during other state -proclaimed emergencies, such as earthquakes or wildfires, where physical attendance may present a risk.

Recommended Action: City Council adopt Resolution No. R2M22-14: A Resolution of the City Council of the City of Alhambra reauthorizing the City Council, and the City’s Boards and Commissions to implement teleconference accessibility for conducting public meetings pursuant to AB 361

7. ANNUAL COMPREHENSIVE FINANCIAL R EPORT FOR FY 2020 -2021 – F2M20-17, M2M22-20

Staff wishes to submit to the City Council the following reports for the year ended June 30, 2021: City of Alhambra - Annual Comprehensive Financial Report; City of Alhambra - Audit Committee Letter; Independent Auditor’s Report – Government Auditing Standards; and, Appropriations Limit Worksheet with Independent Accountants’ Report. Based on the results of their audit, CliftonLarsonAllen, LLP has provided the City with an unmodified opinion on the City’s annual financial statements and has issued various Auditors’ Reports thereon.

Recommended Action: City Council receive and file the annual audit reports for the year ended June 30, 2021: 1) City of Alhambra – Annual Comprehensive Financial Report (ACFR); 2) City of Alhambra – Audit Committee Letter; 3) Independent Auditor’s Report - Government Auditing Standards; and, 4) Appropriation s Limit Worksheet with Independent Accountant’s Report. (M2M22-20)

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8. NIB: 2022 USDA SUMMER FOOD SERVICE PROGRAM – F2M22-26, N2M22-22

Staff requests that the City Council approve the City’s participation in the 2022 Summer Food Service Program (SFSP) and authorize staff to circulate a Notice Inviting Bids to secure a vendor to provide prepared lunches and snacks for the program . Distribution of lunches and snacks are proposed for Monday through Friday, beginning May 31 through August 5, 2022.

Recommended Action: City Council approve the City’s participation in the 202 2 Summer Food Service Program (SFSP) and authorize staff to circulate a Notice Inviting Bids to secure a vendor to provide prepared lunches and snacks for the program.

9. APPROPRIATION OF FUNDS FOR THE 4th OF JULY CELEBRATION – F2M21-17, F2M7-50, C2M20-3, M2M22-21

On January 13, 2020, the City Council approved the distribution of a Request for Proposals for Pyrotechnics Services for the Alhambra 4th of July Celebration. On February 10, 2020, Garden State Fireworks Inc. was awarded a three -year contract to provide Professional Pyrotechnic display services for our 4th of July Celebration. On May 1 1, 2020, the City Council approved a first amendment to the agreement to incorporate a new fee schedule for the period commencing July 1, 2020, through July 31, 2023.

Recommended Action: City Council appropriate funds to Garden State Fireworks, Inc. in an amount not to exceed $28,900.00 for the annual 4th of July Celebration; instruct the Finance Director to pay 50% of this year’s cost $14,450 in FY 2021-2022 and pay the remaining balance of $14,450 as an expenditure in FY 2022 -2023 in account number 101.60.6110.66314; and, direct staff to undertake the steps necessary to finalize Council’s action. (M2M22-21)

10. CONTRACT AMENDMENT: PARKING CITATION PROCESSING SERVICES – F2M20- 29, C2M20-36, M2M22-23

On August 10, 2020, City Council awarded a contract with Duncan Solutions dba Professional Account Management LLC for parking citation processing services for the period November 1, 2020 through June 30, 2025 in an amount not to exceed $999,002.40.

On September 27, 2020, the City Council approved the proposed plan for the American Rescue Plan Act of 2021 Relief Funds. The proposed plan contains approval for technology modernization that responds to needs arising from the pandemic by delivering more efficient digital services to patrons. The City will implement a virtual permitting th at replaces the current parking permits for annual and overnight parking. The system conversion is expected to improve and streamline the parking permitting process and patrons will no longer need to display a physical permit. Duncan Solutions has implemented the virtual parking system for other cities and they are familiar with the City’s cashiering and parking citation system, therefore, the implementation process will be quicker and easier. Duncan Solutions is proposing to offer the additional services a t approximately $115,285.93 per year beginning March 1, 2022 through June 30, 2025 plus unanticipated costs of $10,000 for FY 2021-22. This will increase the total contract amount by $355,857.79. Pursuant to Alhambra Municipal Code 3.38.050, the City Counc il may

8 2-28-22
dispense with any or all of the purchasing procedures when, at their discretion, they deem it would be advantageous to the city to do so.

Recommended Action: City Council approve a First Amendment to the parking citation processing services agreem ent (C2M20 -36) with Duncan Solutions dba Professional Account Management, LLC for an additional $355,857.79 in an amount not to exceed $1,354,860.19 through June 30, 2025; and, direct staff to undertake the steps necessary to finalize Council’s action. (M2M22-23)

11. RESOLUTION ACCEPTING GRANT FUNDS FROM THE STATE OF CALIFORNIA

DEPARTMENT OF JUSTICE AND AUTHORIZING THE CHIEF OF POLICE TO

EXECUTE ALL RELATED AGREEMENTS WITH THE STATE IN RELATION THERETO – F2M22-18, R2M22-11, M2M22-22

The City is interest ed in participating in the Tobacco Grant Program, which is made available through the California Healthcare, Research and Prevention Tobacco Tax Act of 2016 (Prop 56) and administered by the California Department of Justice (DOJ) to support local efforts to reduce the illegal sale of tobacco products to minors in the City. Following the City’s submittal of proposal for the Program, the State of California DOJ offered to award $84,362.00 for the four-year grant program beginning upon City Council approval and ending June 30, 2025. Grant funds will be used for overtime costs related to tobacco enforcement operations, roll call training, local retailer inspection operations, operating costs, equipment, and for travel expenses for DOJ-sponsored training.

Recommended Action: City Council accept a tobacco grant award from the California Department of Justice (DOJ) and appropriate revenue and expenditure funds in the amount of $84,362.00; adopt Resolution No. R2M22-11 entitled: A Resolution of the City Council of the City of Alhambra accepting the award of grant funds from the State of California Department of Justice and authorizing the Chief of Police to execute all related agreements with the State in relation thereto; approve the Memorandum of Understanding between the City and the California Department of Justice for the grant, subject to final language approval by the City Manager and City Attorney; and, direct staff to undertake the steps necessary to finalize Council’s action. (M2M22-22)

12. AUTHORIZE RFP: REQUEST FOR PROPOSALS - PROFESSIONAL ENGINEERING

DESIGN SERVICES FOR ASSESSMENT AND REHABILITATION OF SEWER MAIN AT SEWER LIFT STATION NO. 3 – F2M22-27, RFP2M22-2

The Sewer Lift Station No. 3 was originally constructed in 1926. It is located at Bal zac Street and Winthrop Drive. The sewer main that crosses under the Interstate 10 freeway from Ramona Road to Sewer Lift Station No. 3 is the original cast iron sewer main. The cast iron sewer main is in poor condition. This project will study if the sewer main could be rehabilitated with a liner, or if the line should be completely replaced.

Recommended Action: City Council approve the distribution of a Request for Proposals for Professional Engineering Design Service s for the Assessment and Rehabilitation of Sewer Main at Sewer Lift Station No. 3 with proposals due no later than

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4:00 p.m. on March 24, 2022; and, direct staff to undertake the steps necessary to finalize Council’s action.

13. AUTHORIZE RFP: PROFESSIONAL ENGINEERING DESIGN SERVICES FOR THE

WATER MAIN REPLACEMENT PROJECT ON WESTMINSTER AVENUE, ORANGE GROVE AVENUE AND CONCORD AVENUE – F2M22-28, RFP2M22-3

The four-inch cast iron water mains on Westminster Avenue between Poplar Boulevard and Concord Avenue, Orange Grove Avenue between Poplar Boulevard and Orange Grove Avenue, and the six-inch cast iron water main on Concord Avenue between Orange Grove Avenue to Westboro Avenue were installed in 1923 and they have a history of breaks. These water main lines should be replaced and would greatly improve flow and firefighting capabilities in an emergency. This project would replace the existing four-inch and six-inch cast iron water mains with new 8-inch ductile iron water mains.

Recommended Action: City Council approve the distribution of a Request for Proposals for Professional Engineering Design Services for the Water Main Replacement Project on Westminster Avenue, Orange Grove Avenue, and Concord Avenue with proposals due no later than 4:00 p.m. on March 22, 2022 ; and, direct staff to undertake the steps necessary to finalize Council’s action.

14. AWARD CONTRACT: LONGDEN WELL NO. 2 MOTOR REPLACEMENT PROJECT – F2M22-29, C2M22-6, M2M22-24

Longden Well No. 2 is located at 721 San Salvatore Place. It pumps water directly into the South Zone of the distribution system and to the Garfield Reservoir. It is a critical producer of potable water for the City. On January 27, 2022, staff observed a n alarm on the SCADA system. The alarm showed that Longden No. 2 had failed to start. Upon arrival at the site, testing of the pump and motor determined that the 250 horsepower Byron Jackson submersible motor had a short and which would require the pump and motor be pulled from the well and repaired. General Pump Company is the sole supplier and repair facility for Byron Jackson pump and motor assemblies in the Southern California Region.

Staff recommends issuing a contract to General Pump Company to compl ete the motor replacement in an amount not to exceed $227,064.00.

Recommended Action: City Council award a contract, subject to final language approval by the City Manager and City Attorney, to General Pump Company Inc. for the Longden No. 2 Motor Replacement in an amount not to exceed $227,064.00, direct the Finance Director to appropriate funds from the Water Fund Balance in the amount of $27,064.00, and direct staff to take the steps necessary to finalize Council’s action. (M2M22-24)

15. ALLEY DEDICATION: 1700 S. 8th STREET – F2M22-8, M2M22-25, D2M22-2025

Staff requests that the City Council accept an alley dedication for the project located at 1700 S. 8 th Street. As part of the approval for the project located at the aforementioned address, a 2.5-foot alley dedication was required. The sketch and legal description has

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been completed and has been reviewed and approved by the City Engineer.

Recommended Action: City Council adopt Minute Order No. M2M22-25 as follows:

RESOLVED by the Alhambra City Council as follows: This Council hereby accepts that certain Easement (Deed No. D2M22-25) from Peter J. Chen, granting to the City of Alhambra an easement for public alley purposes and appurtenant facilities the real property in the City of Alhambra, County of Los Angeles, State of California, more particularly described as follows:

The easterly two and one-half feet of Lot 193 of Tract No. 4704, in the City of Alhambra, County of Los Angeles, State of California, as per Map Book recorded in Book 50, Page 45 of Maps, in the Office of County Recorder of said County

and, direct staff to undertake the steps necessary to finalize Council’s action.

16. ACCEPTANCE OF TWO GRANTS UNDER THE STATEWIDE PARK DEVELOPMENT AND COMMUNITY REVITALIZATION PROGRAM – F2M20-18, M2M22-26

On February 22, 2021, City Council approved the authorizing resolutions to apply for seven possible park projects eligible under the Statewide Park Development and Community Revitalization Program ( SPP) grant criteria. Of Alhambra’s seven SPP applications, two projects for Burke Heritage Park and Story Park were selected for funding. Grant award letters for both projects were received on February 10, 2022, and signed by the City Manager as authorized by Resolutions No. R2M21 -9 and R2M21-10.

The grant performance period for both projects is July 1, 2021 through June 30, 2026.

Recommended Action: City Council accept two grants in the amoun ts of $850,000 and $250,000 under the State of California and the Statewide Park Development and Community Revitalization Program (SPP); appropriate revenue and expenditure funds; and, direct staff to undertake the steps necessary to finalize the Council’s action. (M2M22- 26)

17. TREASURER’S REPORT – F2M21-1

Recommended Action: City Council receive and file as submitted the Treasurer's Report prepared by the Director of Finance for t he month of January 2022, listing all of the City's investments as of January 31, 2022.

18. MINUTES

Recommended Action: City Council review and approve as submitted the Minutes of the August 10, 2020 regular meeting of the Alhambra City Council.

19. PERSONNEL ACTIONS – F2M22-2

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Recommended Action: City Council ratify the actions of the City Manager set forth in that certain Personnel Actions document dated February 28, 2022 showing the various appointments, classifications, salary changes, etc., since the last City Council meeting.

20. DEMANDS - F2M22-1

Recommended Action: City Council approve as submitted Final Check List (227733 thru 227856) in the amount of $ 456,734.26 for the period ending February 3, 2022; and, Final Check List (227857 thru 22806) in the amount of $692,168.48 for the period ending February 10, 2022.

21. SECOND READING AND ADOPTION OF AN ORDINANCE AMENDING TITLE 23 (ZONING) OF THE ALHAMBRA MUNICIPAL CODE, CHAPTER 23.27 (DOWNTOWN

REVITALIZATION DISTRICT) PERTAINING TO REGULATIONS AND STANDARDS ASSOCIATED WITH AFFORDABLE HOUSING DEVELOPMENTS – F2M22-23, O2M22-4799

Staff requests that the City Council consider second reading and adoption of an ordinance amending Chapter 23.27 (Downtown Revitalization District) of the Alhambra Municipal Code pertaining to regulations and standards related to affordable housing developments.

The proposed Ordinance is on the City Council’s Strategic Plan to encourage and facilitate affordable housing development in the Downtown Revitalization District and assist the City to meet their Housing Element goals. The proposed Ordinance also completes one of the programs outlined in the City’s recently adopted 2021 -2029 Housing Element. “Program 9: Expanded Density bonus in the Downtown Revitalization District” seeks to expand the density provisions into the entirety of the District to be consistent with Assembly Bill 1763 (AB 1763). In 2019, AB 1763 substantially amended the State of California’s density bonus laws that were originally enacted in 1979. The State’s density bonus law is intended to support the construction of affordable housing.

Recommended Action: City Council declare introduced for the second reading and adopt the following ordinance entitled:

Ordinance No. O2M22-4799: An Ordinance of the City Council of the City of Alhambra approving Zone Text Amendment AMD-21-02 for an Amendment to Chapter 23.27 (Downtown Revitalization District) of the Alhambra Municipal Code pertaining to regulations and standards related to affordable housing developments

22. RESOLUTION: APPOINTMENTS REQUIRED IN CONNECTION WITH THE REORGANIZATION OF THE CITY COUNCIL – F2M22-25, R2M22-15

The following action is required to be taken in connection with the reorganization of the City Council ; i.e., designating the City’s Board members to the Los Angeles County Sanitation District Nos. 2 and 16. By the District’s bylaws, Jeff Maloney, by virtue of becoming Mayor this evening, is the City’s Member; and , Adele Andrade-Stadler is an alternate member to act in place of the presiding officer of the Alhambra City Council.

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Recommended Action: City Council adopt Resolution No. R2M22 -15 entitled: A Resolution of the Alhambra City Council pertaining to the designation of the Member and Alternate Member of the Boards of Directors of County Sanitation District Nos. 2 and 16 of Los Angeles County

PUBLIC COMMENT FOR NON-AGENDIZED ITEMS (TIME LIMITATION - 5 MINUTES)

Citizens wishing to address the Council on any matter which is within the subject matter jurisdiction of the City Council not on the Agenda may do so at this time. Please note that while the City Council values your comments, pursuant to the Brown Act, the City Council cannot take action unless the matter appears as an item on a forthcoming agenda.

COUNCIL COMMUNICATIONS (ANNOUNCEMENTS & FUTURE AGENDA ITEMS) F2M22-7

Each Councilmember at his/her discretion may address the Council and public on matters of general information and/or concern, including announcements and future agenda items.

ADJOURNMENT: The next regul ar meeting of the Alhambra City Council is scheduled for Monday, March 14, 2022 at 6:00 p.m.

N O T I C E

Agenda Items: Copies of the staff reports or other written documentation relating to the items listed on this agenda are available on the City’s website. If you would like to sign -up to receive the City Council meeting agenda and staff reports packet, please visit the City’s website at www.cityofalhambra.org and you will be able to submit your email address on the homepage to the subscription service. Pursuant to Government Code Section 54957.5(b), materials related to agenda items for regular meetings of the Alhambra City Council that are distributed less than 72 hours prior to that meeting, will be made available for public inspection at the Alhambra City Clerk’s Office.

Broadcast of Meeting: A live video stream of each Council meeting is available through the City’s website. The regular meetings of the Alhambra City Council are recorded and are broadcast on Charter Channels 3 and 182 at 7:30 p.m. on Thursdays and Mondays following the meetin g.

Recordings are also available for viewing by the public on the City of Alhambra’s website, and, upon appointment, in the City Clerk’s Office.

LAUREN MYLES, CMC

CITY CLERK

Annual Comprehensive
Financial Report

Fiscal Year Ended
June 30, 2021
City of

ALHAMBRA

CALIFORNIA

CITY OF ALHAMBRA,

CALIFORNIA

Annual Comprehensive Financial Report

Year ended June 30, 2021

(With Independent Auditors’ Report Thereon)

Prepared by:

Pearl Lieu, Director of Finance
and Staff

i

CITY OF ALHAMBRA
Annual Comprehensive Financial Report
Table of Contents
Page
Introductory Section:

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

Financial Section:

Independent Auditors’ Report 1
Management’s Discussion and Analysis 4

Basic Financial Statements:

Government-Wide Financial Statements:

Statement of Net Position 16
Statement of Activities 17
Fund Financial Statements:

Balance Sheet – Governmental Funds 18
Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds 20
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual:

General Fund 22
Housing Asset Fund 25
American Recovery Act Fund 26
Statement of Net Position – Proprietary Funds 27
Statement of Revenues, Expenses, and Changes in Fund Net Position – Proprietary Funds 28
Statement of Cash Flows – Proprietary Funds 29
Statement of Fiduciary Net Position 31
Statement of Changes in Fiduciary Net Position 32

Notes to the Basic Financial Statements 33
Required Supplementary Information (Unaudited):

Schedule of Changes in Net Pension Liability and Related Ratios – Miscellaneous Plan Last Ten Fiscal Years 86
Schedule of Contributions – Miscellaneous Plan Last Ten Fiscal Years 87 Schedule of Changes in Net Pension Liability and Related Ratios – Safety Plan Last Ten Fiscal Years 88
Schedule of Contributions – Safety Plan Last Ten Fiscal Years 89 Schedule of Changes in Total Pension Liability and Related Ratios – Other Pension Plan Last Ten Fiscal Years 90
Schedule of Contributions – Other Pension Plan Last Ten Fiscal Years 91

ii

CITY OF ALHAMBRA
Annual Comprehensive Financial Report
Table of Contents (Continued)
Page
Schedule of Changes in Total OPEB Liability and Related Ratios – PERS Health Plan Last Ten Fiscal Years 92
Schedule of Changes in Total OPEB Liability and Related Ratios – City Council Plan Last Ten Fiscal Years 93

Combining and Individual Fund Statements and Schedules:

Other Governmental Funds:

Combining Balance Sheet – Other Governmental Funds 94
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Other Governmental Funds 95

Combining Balance Sheet – Other Special Revenue Funds 96 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Deficits) – Other Special Revenue Funds 99
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Other Special Revenue Funds:

Law Enforcement Fund 102
TDA Bikeway Fund 103
State Gas Tax Fund 104
Proposition A – Transportation Fund 105
Proposition C – Transportation Fund 106
Measure R – Transportation Fund 107
Measure M – Transportation Fund 108
Road Maintenance & Rehabilitation Fund 109
Air Quality Fund 110
Lighting and Landscape Maintenance Fund 111
Police Facility Assessment Fund 112
Asset Forfeiture Fund 113
Disability Access Compliance Fund 114
Home and Rental Rehabilitation Fund 115
Community Development Block Grant Fund 116
Transportation Capital Improvements Fund 117
Safe Clean Water Program Fund 118

Combining Balance Sheet – Other Debt Service Funds 119
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Other Debt Service Funds 120
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Other Debt Service Funds:

Lighting and Sidewalk Construction Fund 121
Police Facility Fund 122
Parking Authority Debt Service Fund 123

iii

CITY OF ALHAMBRA
Annual Comprehensive Financial Report
Table of Contents (Continued)
Page

Combining Balance Sheet – Other Capital Projects Funds 124 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Other Capital Projects Funds 125
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Other Capital Projects Funds:

Capital Outlay Fund 126

Internal Service Funds:

Combining Statement of Net Position (Deficits) – Internal Service Funds 127 Combining Statement of Revenues, Expenses, and Changes in Net Position (Deficits) – Internal Service Funds 128
Combining Statement of Cash Flows – Internal Service Funds 130

Statistical Section (Not Covered by Independent Auditors’ Report)

Net Position by Component - Last Ten Fiscal Years 131
Changes in Net Position - Last Ten Fiscal Years 132
Fund Balances of Governmental Funds - Last Ten Fiscal Years 133 Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years 135 Assessed Value and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years 136 Direct and Overlapping Property Tax Rates - Current Year and Nine Years Ago 137 Principal Property Tax Payers - Current Year and Nine Years Ago 138 Property Tax Levies and Collections - Last Ten Fiscal Years 139 Ratios of Outstanding Debt by Type - Last Ten Fiscal Years 140 Direct and Overlapping Debt 141
Legal Debt Margin Information - Last Ten Fiscal Years 142 Pledged Revenue Coverage - Last Ten Fiscal Years 144
Demographic and Economic Statistics 145
Principal Employers - Current Year and Nine Years Ago 146 Full-time Equivalent City Government Employees by Function/Program – Last Ten Fiscal Years 147
Operating Indicators by Function - Last Ten Fiscal Years 148 Capital Asset Statistics by Function - Last Ten Fiscal Years 149

Introductory Section

City of Alhambra

February 22, 2022

Gateway
to the
San Gabriel Valley

111
South First Street
Alhambra
California
91801

Honorable Mayor and City Council
City of Alhambra
Alhambra, California
It is our pleasure to submit for your information the Annual Comprehensive Financial Report of the City of Alhambra for the fiscal year ended June 30, 2021. Responsibility for the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, rests with the City. It is our opinion the data is accurate in all material aspects and provided in a manner that fairly sets forth the financial position and results of operations of the City and provides all disclosures necessary to enable the reader to gain an understanding of the City’s financial affairs.

The financial statements are prepared in accordance with Generally Accepted Accounting Principles in the United States of America (GAAP) as promulgated by the Government Accounting Standards Board. This report consists of Management’s representations concerning the finances of the City of Alhambra, California. Consequently, Management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, 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 have been designed to provide reasonable rather than absolute assurance 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 CliftonLarsonAllen LLP, a public accounting firm fully licensed and qualified to perform audits of state and local governments within the state of California. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City of Alhambra, California for the fiscal year ended June 30, 2021 are free of material misstatements. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by Management; and evaluating the overall financial statement presentation. Based upon the audit, the independent auditors concluded there was a reasonable basis for rendering an unmodified opinion the City of Alhambra, California’s financial statements for the fiscal year ended June 30, 2021 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.

iv

ii

The independent audit of the financial statements of the City was part of a broader, federally mandated “Single Audit” designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited government’s internal controls and compliance with legal requirements with special emphasis on internal controls and legal requirements involving the administration of federal awards. These reports are available in the City’s separately issued Single Audit Report.

A Management Discussion and Analysis (MD&A) immediately follows the independent auditor’s report and provides a narrative introduction, overview, and analysis of the basic financial statements. The MD&A complements this letter of transmittal and should be read in conjunction with it.

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

Alhambra occupies 7.69 square miles and has been fully developed since the 1960s. Private development and higher densities have increased the population from 54,800 in 1960 to 86,258 in 2020. The City is diversified with single family and multiple family housing development, commercial development, and significant industrial development.

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

Economic Condition and Outlook
Local Economy. In 2020, the City experienced a challenging economic environment, with key City revenues significantly impacted by the Covid-19 restrictions following the onset of the pandemic. Fortunately, the City of Alhambra residents voted to add the new Measure AL transaction use tax (3/4 cent) on March 3, 2020.

The availability of Measure AL revenues has helped the City get through this pandemic without having to reduce the General Fund Emergency Reserve, furloughing or laying off employees, or reducing City services.

Financial activity at the end of the fiscal year indicates revenues came in higher and expenditures lower than the revised budget. This is a reflection of the City’s conservative budgeting and more rapid improvement in the economy than had been initially anticipated. The City received $16.9 million in sales tax revenues and $9.3 million in Measure AL transaction use tax revenues, making sales tax the largest source of revenue for the City.

With its diverse economic base, the City has a combination of commercial and light industrial business with currently 7,600 active businesses located in the City. Major centers including the “Alhambra Place” located at the southeast corner of Garfield Avenue and Main Street continues to be a popular destination because of strong anchors such as Sprouts Market and Burlington. The Alhambra Renaissance Entertainment Center located at the northeast corner of Main Street and Garfield Avenue includes Applebee’s Grill, Panda Express, Grill’Em All, and Temptation Chocolate Factory. The Center features a five-level public parking structure and surface parking lot, which provides free and convenient parking spaces for patrons who visit the Alhambra Renaissance Entertainment Center and surrounding businesses in the downtown. Other major businesses within the City include Costco, Kohls, Home Depot, Ross Dress For Less, Target, Smart and Final, Petsmart, and Big Lots.

Automobile sales constitute 34 percent of sales tax revenues and is the City’s largest business sector. There are currently 15 new and used auto dealerships. The automotive group rose significantly in the last quarter, but overall performance was well below trends over the last six quarters. Limited supply has been overwhelmed by strong demand. General consumer goods started to rebound and continued that trend. iii

Restaurant sales increased for the first time in six quarters, but are still below pre-Covid levels as casual and fast casual results remain depressed. Fuel sales also rose for the first time in six quarters due to increase in fuel prices. The City is on its way to recovery with total sale receipts still below pre-Covid levels. Also, the California Department of Tax and Fee Administration (CDTFA) has extended due dates and offered payment plans to small businesses. This has, and will continue to create, timing issues related to when revenues are received.

Property Taxes
Property taxes is the second largest source of revenue at $15.5 million. Consistent demand for property in the City of Alhambra has allowed the City to enjoy long-term growth trends. Property taxes were budgeted conservatively in anticipation of the potential for delayed payments due to economic hardship and the Governor’s Executive Order to suspend penalties and interest for delinquent payments. These concerns did not impact revenues; FY 2020/21 property taxes came in $800,000 higher than budgeted primarily because California’s median home price reached a new record high in March 2021, from a year ago. Alhambra’s median homes are selling at $816,500 versus $705,000 from last year, representing an increase in median price by $111,500 or 15.8%.

Property tax revenues are projected to increase moderately at 2.5% compared to previous increases from

3.5%-4.5%. Under State law, property assessments are increased by the Consumer Price Index (CPI), not to exceed an increase of 2% (barring resale). Due to the COVID-19 pandemic and a decrease in the CPI at

1.039%, the City anticipates property tax revenues will continue to increase but at a slower pace.

Transient Occupancy Taxes (TOT)
Transient occupancy taxes were severely impacted as the pandemic unfolded, as most motels within the City were temporarily closed towards the end of March 2020 and many didn’t start reopening until early June 2020. Travel restrictions severely impacted and have continued to negatively impact the recovery of tourism.

Staff budgeted very conservatively, expecting to realize 50% of prior year revenues. At the end of the fiscal year, the City received $400,000 in TOT revenues compared to pre-pandemic revenues of $750,000. The City anticipates a slow recovery for TOT revenues.

Financial Information
Long-term Financial Planning. The City has developed a Strategic Plan with established goals from which budgetary decisions are made. The Plan is periodically updated and the City is consistently working to achieve its goals. During this recent quarter through December 2021, staff focused on the execution of high priority Strategic Plan items. Most significantly, work regarding housing objectives continue or are underway (as in evaluating SB 9, historic preservation, and moving forward on affordable housing construction activities); economic study (West Valley) is expected to be completed by the end of the year; 710 Mobility Improvement Projects planning (Fremont) is under review by Caltrans; grant applications were completed for the City’s two aquatic facilities and for multi modal transportation projects (Valley and Poplar); website enhancements and modernization continue; green space expansion for Story Park was recently approved for state funding; new trees (25) were planted; additional police officers and dispatchers were hired; and a Vision Zero resolution was adopted. The City has also developed a Five-Year Capital Improvement Plan detailing specific capital projects planned for each City department. Each project is consistent with the overall goals and objectives of the City as outlined in the Strategic and General Plans. The current Five-Year Capital Improvement Plan proposed $22.9 million of capital projects for Fiscal Year 2021/22, which includes $11.1 million for major street projects, $9.5 million for water and sewer system improvements, $1.8 million in public safety capital expenditures, $185,000 for parks and recreation, and $345,000 for technology enhancements.

Internal Controls. Management of the City is responsible for establishing and maintaining internal controls designed to ensure the assets of the government are protected from loss, theft, or misuse, and to ensure adequate accounting data is compiled to allow for the preparation of financial statements in conformity with iv

U.S. GAAP. Internal control is designed to provide reasonable, but not absolute, assurance these objectives are met. The concept of reasonable assurance recognizes: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by Management. Management asserts, to the best of their knowledge and belief, this financial report is complete and reliable in all material respects.

Budgetary Control. The City of Alhambra adopts a comprehensive budget detailed by department prior to the start of the fiscal year on July 1. The budget is further broken down by character of expenditure, defined as personnel services, service and supplies, and capital outlay. The ledgers of the City and its component units are maintained by the line item detail or object of expenditure. However, all budgetary controls are exercised at the department and fund level. The City maintains budgetary controls to ensure compliance with legal provisions in the annual appropriated budget approved by the City Council. Revenues are estimated annually and measured against actual revenues received. The City also maintains an encumbrance accounting system for budgetary control. Encumbrances generally are re-appropriated as part of the following year's budget.

Major Initiatives. Private investment and development continue to occur throughout the City with several significant projects, including the following that were approved and anticipated to begin construction in Fiscal Year 2021/22:

 Mariposa Affordable Housing – 38 S. 2nd St.

This 7-story, 78,600 square foot, mixed-use building will provide 24 very low income supportive housing units, 25 low income units, and one on-site manager’s unit. The mixed-use building will also feature a 1,100 square foot commercial unit, 29 public parking spaces, and 23 parking spaces for the project residents. The project is located in the Central Business District and is presently improved as a public parking lot.

 All Souls School Educational Building Addition – 29 S. Electric Ave.

This new 2-story, 11,895 square foot educational building will provide an 11,895 square foot, two (2) story school building with an additional 10 new classrooms, a meeting room, a teacher’s lounge, and offices spaces, and restrooms to the existing All Souls School facility.

 Raising Cane’s Chicken Fingers – 1300 E. Valley Blvd.

A new 4,948 square foot Raising Cane’s Chicken Fingers restaurant with drive-through service takes over a vacant Wells Fargo Bank building. The site will be thoroughly remodeled to accommodate a new parking lot, drive-through lanes and outdoor dining patio, and the building will be remodeled to provide the distinctive Raising Cane’s aesthetic.

 Cruizers Car Wash – 1301 W. Valley Blvd.

This new 4,388 square foot fully automated car wash replaces a furniture store and an automobile repair shop on a site of approximately 41,321 square feet. This car wash will be the first fully automated car wash in Alhambra, benefiting the community by allowing the public to choose faster service, avoiding hand wash or self-serve car washes.

 Monterey Bay Square Mixed-Use Project – 108-110 S. Monterey St.

Monterey Bay Square will be a mixed-use residential and commercial center located on an approximate land area of 62,960 square feet (1.45 acres). The project consists of a six-story mixed-use building with 14,068 square feet of ground-floor retail and five floors of condominium residential units (62 units total) above. There will also be a second building consisting of a 7-level parking structure with a ground floor 6,500 square foot restaurant unit.

xi

ORGANIZATIONAL CHART
Katherine Lee
First District
Ross J. Maza
Second District
Jeff Maloney
Third District
Sasha Renée Pérez
Fourth District
Adele Andrade-Stadler
Fifth District
Civil Service/
Board of Appeals
Parks &
Recreation
Commission
Planning
Commission
Historic Preservation
Commision
HCDA Citizens
Advisory
Committee
Management
Services
Parks and
Recreation
City
Clerk
Finance
Community
Development
Human
Resources
Fire Police
Library Utilities
Public
Works
City Manager City Attorney
Arts & Cultural
Events
Committee
Environmental
Committee
Human Relations
Commission
Design Review
Commission
Board of
Library
Trustees
Transportation
Commission
Youth
Commission
City Council

PEOPLE OF ALHAMBRA

Government

Finance

Officers

Asso
ciation
Certificate

of

Achievement
for

Excellence
in

Financial

Reporting
Presented

to
City

of

Alhambra
California
For

its

Annual

Comprehensive
Financial

Report
For

the

Fiscal

Year

Ended
June

30,

2020
Executive

Director/CEO
xii

Financial Section

CLA is an independent member of Nexia International, a leading, global network of independent accounting and consulting firms. See nexia.com/member‐firm‐disclaimer for details. 1 CliftonLarsonAllen LLP
CLAconnect.com
INDEPENDENT AUDITORS’ REPORT

Honorable Mayor and
Members of the City Council
City of Alhambra
Alhambra, California

Report on the Financial Statements
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 Alhambra (the City), as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally acc epted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in the Government Auditing Standards, issued by the Comptroller General of the United Statements. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures sele cted depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the City’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Acco rdingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

Honorable Mayor and
Members of the City Council
City of Alhambra, California
2 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental ac tivities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Alhambra as of June 30, 2021, and the respective changes in financial position and, where applicable, cash flows thereof, and the respective budgetary comparisons for the General Fund, the Housing Asset Special Revenue Fund and the American Rescue Plan Act Special Revenue Fund, for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, the schedule of changes in net pension liability and related ratios for the miscellaneous and safety plans, the schedules of contributions of the miscellaneous, safety, and other defined benefit pension plans, and the schedules of changes in total other postemployment benefits liability and related ratios for the PERS Health and City Council plans identified as required supplementary information in the accompanying table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the in formation for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial st atements. The introductory section, combining and individual non-major fund financial statements and schedules (supplementary information) and statistical section, as listed in the table of c ontents, are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The supplementary information is the responsibilit y of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements.

Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Honorable Mayor and
Members of the City Council
City of Alhambra, California
3 The introductory section and statistical section have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards , we have also issued our report dated February 22, 2022, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is solely 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 effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

CliftonLarsonAllen LLP

Irvine, California
February 22, 2022

THIS PAGE INTENTIONALLY LEFT BLANK

CITY OF ALHAMBRA
Management’s Discussion and Analysis
June 30, 2021
This section of the City’s Annual Comprehensive Financial Report provides a narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2021. We encourage readers to consider the information presented here in conjunction with additional information we have furnished in our letter of transmittal, which can be found beginning on page iv and the City’s financial statements beginning on page 16.

Financial Highlights
The following are some key financial highlights for the fiscal year June 30, 2021:


The City’s assets and deferred outflow of resources exceeded its liabilities and deferred inflow of resources at the close of the most recent fiscal year by $115,402,899 (net position), which was comprised of net investment in capital assets of $194,905,223, restricted for debt service of $239, restricted for projects and programs of $40,202,130, and unrestricted net deficit of $119,704,693. 

The City’s total net position increased by $9,600,953 during the current fiscal year, comprised of an increase in governmental activities of $7,849,836, and an increase in business-type activities of $1,751,117.


As of June 30, 2021, the City’s governmental funds reported combined fund balances of $73,533,031, an increase of $14,391,942 in comparison with the prior year. Of this amount, $33,176,822 or approximately 45% of total fund balances, are available for spending at the City’s discretion (committed, assigned, and unassigned fund balance).


At the end of the current fiscal year, committed, assigned, and unassigned fund balance for the General Fund was $32,716,427, or 47% of total general fund expenditures. However, the City has committed or assigned $32,452,154 for various projects and programs leaving $264,273 as unassigned .

Overview of the Financial Statements
This discussion and analysis are intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements comprise of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to basic financial statements. This report also contains supplementary information in addition to the basic financial statements.

Government-wide Financial Statements.

The
government-wide financial statements
are designed to provide
readers with a broad overview of the City’s finances in a manner similar to a private-sector business.

The
statement of net position
presents information on all of the City’s assets and deferred outflow of resources and liabilities and deferred inflow of resources, with the difference between the two reported as net position.

Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.

The
statement of activities
presents information showing how the City’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs,
regardless of the timing of related cash flows
. Thus, revenues and expenses are reported in this
statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).

Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues
(governmental activities)
. The
governmental activities
of the City
include general government, public safety, public works, housing, health and community development, culture 4 (Continued)

CITY OF ALHAMBRA
Management’s Discussion and Analysis
June 30, 2021
and recreation, and interest on long-term debt. The
business-type activities
of the City include its water, sewer
and storm drain, sanitation, and golf course/clubhouse operations.

The government-wide financial statements include not only the City itself (known as the primary government), but also five legally separate entities, the Alhambra Capital Improvements Corporation, Alhambra Golf course/Clubhouse Corporation, Alhambra Public Financing Authority, Alhambra Parking Authority, Alhambra Facilities Financing Authority, and Successor Agency to the former City of Alhambra Redevelopment Agency.

The City is financially accountable for these entities and financial information for these blended component units is reported within the financial information presented for the primary government itself.

The government-wide financial statements can be found on page 16 and page 17 of this report.

Fund Financial Statements.

A fund is a grouping of related accounts used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The funds of the City can be divided into three categories: governmental funds, proprietary funds and fiduciary funds.

Governmental Funds
. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the governmental-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of
spendable resources
, as well as on
balances of spendable resources
available at the end of this fiscal year. Such
information may be useful in evaluating the City’s near-term financial requirements.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for
governmental funds
with similar information presented for
governmental activities
in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the City’s near-term financial decision. Both the governmental fund balance sheet and the governmental fund statement of revenue, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between
governmental funds and governmental activities
.

The City maintains 24 individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures and changes in fund balances for the General Fund, Housing Asset, and American Rescue Plan Act Fund which are considered to be major funds. Data from the other 21 governmental funds are combined into a single, aggregated presentation.

Individual fund data for each of these other governmental funds is provided in the form of combining statements
in the other governmental funds
section of this report.

The City adopts an annual appropriated budget for all of its funds. A budgetary comparison statement is provided for all funds with an annually adopted budget. The budgetary comparison statement for the General Fund is located in the basic financial statements.

The basic governmental fund financial statements can be found on page 18 and page 20 of this report.

Proprietary Funds.

The City maintains two different types of proprietary funds.

Enterprise funds
are used to
report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its water, sewer and storm drain, sanitation, and golf course/clubhouse operations.

Internal service funds
are an accounting device used to accumulate and allocate costs internally among the City’s various functions. The City uses internal service funds to account for self-insurance activities, including: general claims liability, workers’ compensation insurance, vehicle operation and maintenance, and compensated absences.
5 (Continued)

CITY OF ALHAMBRA
Management’s Discussion and Analysis
June 30, 2021
Because these services benefit both governmental and business-type functions, the services have been allocated to governmental and business type activities in the government-wide financial statements.

Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the water, sewer and storm drain, sanitation, and golf course/clubhouse operations, all of which are considered major funds of the City. Conversely, the internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements in the
Supplementary Information
section of this report.

The basic proprietary fund financial statements can be found on page 27 through page 30 of this report.

Fiduciary Funds.

The City maintains one fiduciary fund, a Private Purpose Trust for the Alhambra Redevelopment Agency Successor Agency. Fiduciary Funds are used to account for financial resources held for the benefit of parties outside the City government. Fiduciary Funds are not reflected in the government-wide statements because the resources are not available to support governmental activities of the City.

The basic fiduciary fund financial statements can be found on page 31 through page 32 of this report.

Notes to the Basic Financial Statements.

The notes to the basic financial statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the basic financial statements can be found on pages 33 through 85 of this report.

Other Information.

In addition to the basic financial statements and accompanying notes, this report also presents certain
required supplementary information
concerning the City’s progress in funding its obligation to provide pension benefits and Other Post-Employment Benefits (OPEB) to its employees.

Required
supplementary information
can be found on pages 86 through 93 of this report.

The combining statements referred to earlier in connection with other governmental funds and internal service funds, together with information on capital assets used in the operation of governmental funds (those not included in internal service funds), are presented immediately following the required supplementary information
on pensions. Combining and individual fund statements and schedules can be found on pages 94 through 130 of this report.
6 (Continued)

CITY OF ALHAMBRA
Management’s Discussion and Analysis
June 30, 2021
Government-wide Financial Analysis
Governmental Business-type
activities
activities
Total
2021
2020
2021
2020
2021
2020
Assets:

Current and other assets $ 101,118,839 78,854,097 23,617,041 27,159,546 124,735,880 106,013,643 Capital assets
143,567,144
144,736,777
79,809,629
73,978,422
223,376,773
218,715,199
Total assets 244,685,983 223,590,874 103,426,670 101,137,968 348,112,653 324,728,842 Deferred outflow of resources
32,250,074
21,007,637
3,914,680
2,386,294
36,164,754
23,393,931
Liabilities:

Current and other liabilities
18,934,813
8,425,315
5,796,018
4,644,424
24,730,831
13,069,739
Long-term liabilities
204,415,984
189,971,615
32,209,640
31,311,870
236,625,624
221,283,485
Total liabilities 223,350,797 198,396,930 38,005,658 35,956,294 261,356,455 234,353,224 Deferred inflow of resources 6,661,495 7,127,652 856,558 839,951 7,518,053 7,967,603 Net position:

Net investment in capital assets
128,928,306
127,671,780
65,976,917
61,130,751
194,905,223
188,802,531
Restricted 40,202,369 35,976,645 — — 40,202,369 35,976,645 Unrestricted
(122,206,910)
(124,574,496)
2,502,217
5,597,266
(119,704,693)
(118,977,230)
Total net position $
46,923,765 39,073,929 68,479,134 66,728,017 115,402,899 105,801,946 Summary of Net Position
June 30, 2021 and 2020
As noted earlier, net position may serve over time as a useful indicator of the City’s financial position. In the case of the City, assets and deferred outflow of resources exceeded liabilities and deferred inflow of resources by $115,402,899 at June 30, 2021
The largest portion of the City’s net position of $194,905,223 reflects its investment in capital assets (e.g., land, buildings, infrastructure, machinery and equipment, etc.), less any related debt used to acquire those assets that are still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net investment in capital assets, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.

The second largest portion of the City’s net position of $40,202,369 represent resources that are subject to external restrictions on how they may be used. The remaining portion of the City’s net position is unrestricted and may be used to meet the City’s ongoing obligations to citizens and creditors. At June 30, 2021, unrestricted net deficit was $119,704,693.
7 (Continued)

CITY OF ALHAMBRA
Management’s Discussion and Analysis
June 30, 2021
Summary of Changes in Net Position
For the Years ended June 30, 2021 and 2020
Governmental Business-type
activities
activities
Total
2021
2020
2021
2020
2021
2020
Revenues:

Program revenues:

Charges for services
$
17,017,232
12,105,422
35,443,816
33,578,015
52,461,048
45,683,437
Operating grants and contributions
7,979,528
7,454,002
171,632
21,537
8,151,160
7,475,539
Capital grants and contributions
4,002,815
3,910,473
—
—
4,002,815
3,910,473
General revenues
71,946,733
63,393,914
56,170
768,226
72,002,903
64,162,140
Total revenues 100,946,308 86,863,811 35,671,618 34,367,778 136,617,926 121,231,589 Expenses:

General government
2,100,020
2,238,731
—
—
2,100,020
2,238,731
Public safety
59,203,389
60,038,501
—
—
59,203,389
60,038,501
Public works
10,215,124
9,467,616
—
—
10,215,124
9,467,616
Housing, health, and community
development
10,288,135
8,611,381
—
—
10,288,135
8,611,381
Culture and recreation
10,740,729
11,665,715
—
—
10,740,729
11,665,715
Interest on long-term debt
648,865
588,478
—
—
648,865
588,478
Water
—
—
17,708,184
18,447,582
17,708,184
18,447,582
Sewer and storm drain
—
—
5,321,402
5,399,388
5,321,402
5,399,388
Sanitation
—
—
10,231,848
9,993,792
10,231,848
9,993,792
Golf course/clubhouse
—
—
559,277
601,945
559,277
601,945
Total expenses 93,196,262 92,610,422 33,820,711 34,442,707 127,016,973 127,053,129 Increase (decrease) in net position before
transfers 7,750,046 (5,746,611) 1,850,907 (74,929) 9,600,953 (5,821,540) Transfers in (out) 99,790 751,777 (99,790) (751,777) — — Increase (decrease) in net position 7,849,836 (4,994,834) 1,751,117 (826,706) 9,600,953 (5,821,540) Net position, July 1 39,073,929 44,068,763 66,728,017 67,554,723 105,801,946 111,623,486 Net position, June 30 $ 46,923,765 39,073,929 68,479,134 66,728,017 115,402,899 105,801,946

Governmental Activities.

Governmental activities increased the City’s net position by $7,849,836.

Governmental Revenues.

Governmental revenues increased by $14,084,497 or 16.2%. The primary increase is due to the newly approved tax measure, which brought in $9,367,160 in transaction use tax revenues. Sales and use tax revenues came in stronger than anticipated due to the easing of pandemic related restrictions and strong consumer spending. Property taxes also increased $1,263,835 due to continued new development in the City and resale of residential properties. Additionally, the City received one-time Community Development Block Grant (CDBG) funds of $1,247,068 from the U.S. Department of Housing and Urban Development and one-time Coronavirus Aid, Relief, and Economic Security Act (CARES) funds of $1,071,632 from the U.S. Department of Treasury to provide for housing assistance payments to low- and moderate-income households impacted by the Covid-19 pandemic, drive-up Covid-19 testing provided at Alhambra location, additional meal support for presumed-income seniors, and personal protective equipment. The City also received $854,577 from the Safe, Clean Water Program to implement programs to increase stormwater and urban runoff capture and reduce stormwater and urban runoff pollution.
8 (Continued)

CITY OF ALHAMBRA
Management’s Discussion and Analysis
June 30, 2021
Governmental Expenses.

Governmental expenses increased by $585,840 or 0.6%. There are several reasons which account for this net increase which included increases and decreases for various reasons. Significant increases include an increase in claims liability of $1.6 million, increase in equipment internal service fund allocation of $1.4 million for larger net loss due to deferral of contributions in current fiscal year, increase in public safety personnel costs of $3.1 million for filling of vacancies and overtime costs. However, offsetting these increases includes a decrease in pension expenses of $4.7 million. The pension valuation for this information was conducted using a measurement date of June 30, 2019. In 2019, the interest rate were high creating investment gains that reduced the pension expense. However, the City anticipates the pension expense will increase as a result of investment losses caused by the Covid-19 pandemic. Pension expenses are reported in accordance with GASB 68 standards.
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
General
government
Public safety Public works Housing, health,
and community
development
Culture and
recreation
Interest on long-
term debt
Expense and Program Revenues
Governmental Activities
For the year ending June 30, 2021
Expenses
Program Revenue

Charges for services
30%
Operating grants and
contributions
38%
Capital grants
and
contributions
5%
Property taxes
3%
Sales taxes
2%
Business license
2%
Utility users tax
15%
Other taxes
0%
Investment earnings
5%
Other
0%
Revenues by Source - Governmental Activities

9 (Continued)

CITY OF ALHAMBRA
Management’s Discussion and Analysis
June 30, 2021
Business-type Activities.

Business-type activities increased the City’s net position by $1,751,117.

Business-type activities had revenues and net assets sufficient to cover operations. A key element of this net increase is as follows:

Water Fund net position increased $930,320 due to increase in operating revenues of $1,283,676 primarily due to revenues increasing from additional dwelling unit construction. Operating expenses also decreased $1,072,940 primarily due to reduction in pipeline fee of $1,498,358 with expenses increasing from additional purchase and pumping of water expenses.

Sewer and Storm Drain Fund net position increased $2,709,081 with operating revenues increasing $965,662 primarily due to revenues increasing from additional dwelling unit construction and expected increase in net position providing for the accumulation of resources for future capital projects and expenses.

Golf course/Clubhouse Fund net position decreased $250,745 primarily due to continued significantly lower banquet facility revenues as result of Covid-19.
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
Water Sewer and storm
drain
Sanitation Golf
course/clubhouse
Expenses and Program Revenues - Business-Type Activities For the year ended June 30, 2021
Expenses
Program Revenue

Charges for services,

99.84%
Investment earnings,

0.07%
Other, 0.09%
Revenues by Source - Business-Type Activities

10 (Continued)

CITY OF ALHAMBRA
Management’s Discussion and Analysis
June 30, 2021
Financial Analysis of the City’s Major Funds
Governmental Funds.

The focus of the City’s
governmental funds
is to provide information on near-term
inflows, outflows, and balances of
spendable resources
. Such information may be useful in assessing the City’s financing requirements. Below is an analysis of the City’s major governmental funds for the year ended June 30, 2021.

June 30,
June 30,
Amount
Percentage
2021
2020
Increase
Change
Fund Balance:

General Fund
$
33,285,858
24,044,884
9,240,974

38.43%
Housing Asset
11,482,368
11,451,161
31,207

0.27%
American Rescue Plan Act
—
—
—

0.00%
Total Fund Balance
$ 44,768,226 35,496,045 9,272,181 38.70%

The General Fund is the chief operating fund of the City. At the end of the current fiscal year, the fund balance was $33,285,858 which increased by $9,240,974 during the current fiscal year. Key factors for changes in the current fiscal year fund balance are as follows: The primary increase is due to the newly approved tax measure, which brought in $9,367,160 in transaction use tax revenues. Sales and use tax revenues came in stronger than anticipated due to the easing of pandemic related restrictions and strong consumer spending. Property taxes also increased $1,263,835 due to continued new development in the City and resale of residential properties. These revenues were offset by lower interest earnings and parks and recreation revenues impacted by the Covid-19 pandemic. Total expenditures also increased $2,411,010 with safety personnel costs increasing $2,329,201 due to filling of vacant police positions and fire department overtime along with $728,007 of grant reimbursed Covid-19 expenditures offset by net decrease of various other expenditures including a decrease in library and parks expenditures due reduced operations from Covid-19.

The Housing Asset Fund accounts for the receipt and expenditure of the revenues received from housing assets of the former Alhambra Redevelopment Agency. At the end of the current fiscal year, the fund balance was

$11,482,368 which increased by $31,207 during the current fiscal year.

The American Rescue Plan Act accounts for the receipt and expenditure of funds received from the American Rescue Plan Act. During the current fiscal year $10,924,335 was received from the Act and $577,256 was expended.

Proprietary Funds.

The City’s proprietary funds provide the same type of information found in the government-wide financial statements, except for the effects of the allocation of the internal service fund activities. Below is an analysis of the City’s major proprietary funds for the year ended June 30, 2021. 11 (Continued)

CITY OF ALHAMBRA
Management’s Discussion and Analysis
June 30, 2021
Amount
Percentage
June 30,
June 30,
Increase
Increase
2021
2020
(Decrease)
(Decrease)
Net Position:

W ater Fund
$
32,268,139
31,337,819
930,320

2.97%
Sewer Fund
37,590,329
34,881,248
2,709,081

7.77%
Sanitation Fund
(1,351,618)
(894,424)
(457,194)
-51.12%
Golf course/Clubhouse Fund
4,822,497
5,073,242
(250,745)
-4.94%
Total Net Position $ 73,329,347 70,397,885 2,931,462 -45.32% Unrestricted Net Position:

W ater Fund
$
719,454
957,226
(237,772)
-24.84%
Sewer Fund
9,700,564
10,379,764
(679,200)
-6.54%
Sanitation Fund
(1,471,670)
(1,002,055)
(469,615)
-46.87%
Golf course/Clubhouse Fund
(1,595,918)
(1,067,802)
(528,116)
-49.46%
Total Unrestricted Net Position $ 7,352,430 9,267,133 (1,914,703) -127.71%

Enterprise Funds.

Unrestricted net position of the enterprise funds totaled $7,352,430, while total net position was $73,329,347 at the end of the current year. The total increase in net position for these funds was $2,931,462.

The Water Fund’s unrestricted net position of the Water Fund decreased $237,772 during the current fiscal year.

This decrease was primarily due to an increase in net investment in capital assets of $1,168,092 primarily from increase in construction in progress for water main line and net income of $930,320 from factors addressed in the discussion of the City’s business-type activities.

The Sewer and Storm Drain Fund’s unrestricted net position decreased $679,200 during the current fiscal year .

This decrease was primarily due to an increase in net investment in capital assets of $3,388,281 primarily from increase in infrastructure including sewer main lines and lift and pump station improvements, and net income of $2,709,081 from factors addressed in the discussion of the City’s business-type activities.

The Sanitation Fund’s unrestricted net deficit was $1,471,670 at the end of the current fiscal year, while the total net deficit was $1,351,618. The unrestricted net position of the Sanitation Fund decreased $469,615. This difference was a result of various differences in operating revenues and expenses including additional costs for consulting services for refuse hauling contract.

The Golf course/Clubhouse fund’s unrestricted net deficit was $1,595,918 at the end of the current fiscal year, while the total net position was $4,822,497. The unrestricted net position decreased $528,116 during the current fiscal year attributed primarily due to increase in net investment of capital assets of $277,371 net loss of $250,745 from factors addressed in the discussion of the City’s business-type activities.

General Fund Budgetary Highlights
In the General Fund, differences between the original budget and the final amended budget resulted in a net increase in appropriation of $3,837,898 (net of prior year carryover of available and encumbered balances) and can be briefly summarized as follows:


$1,721,042 in increases allocated to various general government departments 

$33,000 in increases allocated to the parks and recreation department 

$425,299 in increases allocated to the community development department 

$1,693,774 in increases allocated to public safety
12 (Continued)

CITY OF ALHAMBRA
Management’s Discussion and Analysis
June 30, 2021


$1,693,774 in increases allocated to public safety


$102,972 in increases allocated to public works


$138,180 in decreases allocated to the library department

The increase in various general government departments of $1,721,042 included $422,500 for mid-year budget adjustments for various unanticipated costs, and other miscellaneous costs funded by available fund balance along with $215,000 for homeless program costs funded from a county grant and $1,071,632 of costs to be funded from Cares Act funds.

The increase in parks and recreation department of $33,000 included $50,290 for summer lunch program funded by a federal grant and a reduction of $17,290 for various mid-year adjustments funded by available fund balance. The increase of $425,299 in community development included $197,614 for additional costs for housing element update and $227,685 for other miscellaneous costs and mid-year budget adjustments funded by available fund balance, along with $120,000 for housing element update costs funded by state grant funds. The increase of $1,693,774 in public safety included mid-year budget adjustment for overtime of $800,000 and $176,500 for roof repair, 125,000 for shooting range upgrade, $148,980 for HVAC system, and various other items funded by available fund balance, along with $286,903 for training and equipment funded from federal grants. The increase in public works of $102,972 for purchase of dump truck is funded by available fund balance. The decrease in library department of $138,180 includes a decrease of $150,000 for part-time salary hours due to partial closure of library due to pandemic, along with an increase of $11,820 in grant revenue for equipment.

Also, in the General Fund, differences between the final amended budget and the actual amounts for revenues, expenditures, and other financing sources and uses resulted in a net positive variance of $10,395,745. General fund revenues accounted for a positive variance of $5,473,160

resulting from many factors including property tax
revenue having a positive variance of $1,009,205 due to increased property values and sales, sales tax revenue having a positive variance of $1,801,892 due to revenues for new sales tax measure more than projected, and building permit revenues which had positive variances of $913,447 due to unanticipated large projects. General Fund expenditures were under budget by $4,921,318 primarily due to expenditures for police under budget by $1,338,747 as a result of many unfilled positions. Expenditures for building and planning under budget by $735,735 due to building related contract services under budget, and public safety capital outlay under budget by $675,955 due to various grant funds awarded and not yet expended of $509,292. There are various departments under budget and over budget which have a occurred for a multitude of reasons but have resulted in a positive variance for the General Fund.

Capital Asset and Debt Administration
Capital Assets.

The City’s investment in capital assets for its governmental and business-type activities amounts to $223,376,773 (net of accumulated depreciation of $129,236,815) as of June 30, 2021. This investment in capital assets includes land, buildings, improvements other than building, infrastructure (roads, sidewalks, land held under easement, streetlights, etc.), and machinery and equipment. 13 (Continued)

CITY OF ALHAMBRA
Management’s Discussion and Analysis
June 30, 2021
Summary of Capital Assets
(Net of Accumulated Depreciation)
For the Years Ended June 30, 2021 and 2020
Governmental Business-type
activities
activities
Total
2021
2020
2021
2020
2021
2020
Land $ 22,049,439 22,035,738 5,769,073 5,769,073 27,818,512 27,804,811 Buildings, structures, and improvements
53,684,471
55,157,651
10,697,334
10,143,090
64,381,805
65,300,741
Machinery and equipment
8,600,362
7,610,830
1,641,342
1,610,559
10,241,704
9,221,389
Utility systems
—
—
54,729,062
49,139,188
54,729,062
49,139,188
Infrastructure
58,676,626
56,799,196
—
—
58,676,626
56,799,196
Construction in progress
556,246
3,133,362
6,972,818
7,316,512
7,529,064
10,449,874
Total $ 143,567,144 144,736,777 79,809,629 73,978,422 223,376,773 218,715,199

Additional information on the City’s capital assets can be found in notes to the basic financial statements on pages 52 through 56 of this report.

Major capital asset events during the current fiscal year included the following:

Governmental activities


Machinery and equipment additions included various equipment, motor vehicles, and buses. Deletions included vehicles and miscellaneous equipment.


Construction in progress decreased due to various street projects and clubhouse improvement project in process last fiscal year completed in the current fiscal year. 

Infrastructure additions and deletions included improvement and replacement of streets, sidewalks, alleys, curb and gutters, and trees.

Business-type activities


Machinery and equipment additions included various equipment and motor vehicles. Deletions included various vehicles.


Utility systems additions primarily included sewer main line and sewer lift and pump station improvements and deletions included infrastructure removed or replaced due to improvements. 

Construction in progress decreased slightly due to sewer main and sewer plant rehabilitation projects in process last fiscal year completed in the current fiscal year. Additional sewer plant rehabilitation project, sewer and water main line projects to be completed next fiscal year.

Debt Administration.

At the end of the current fiscal year, the City had total debt outstanding of $22,480,000.

Of this amount, $5,650,000 represents certificates of participation issued for various capital improvements including police facility, $5,665,000 represents lease revenue bonds for the construction of a parking structure, $3,550,000 represents revenue bonds for water treatment plant, and $7,615,000 represents revenue bonds for sewer improvement projects. Additions to the City’s long-term debt include a net increase in OPEB liability of $9,710,520, net increase in pension liability of $7,555,905, and a net increase in outstanding claims of $2,077,615. Deductions include a net decrease in benefits payable of $67,921 and the repayment of outstanding principal totaling $3,933,980.
14 (Continued)

CITY OF ALHAMBRA
Management’s Discussion and Analysis
June 30, 2021
Sum m ary of O utstanding D ebt
For the Y ears Ended June 30, 2021 and 2020
G overnm ental Business-type
activities activities Total
2021
2020
2021
2020
2021
2020
Bonded indebtedness:

Certificates of participation
$
5,650,000
7,335,000
—
—
5,650,000
7,335,000
L ease revenue bonds
5,665,000
5,810,000
—
—
5,665,000
5,810,000
Revenue bonds
—
—
11,165,000
12,095,000
11,165,000
12,095,000
Bond prem ium (bond discount)
(43,857)
(45,824)
650,253
775,332
606,396
729,508
O ther long-term debt:

Capital lease obligations
2,045,163
2,826,018
—
—
2,045,163
2,826,018
Benefits payable
3,126,137
3,164,292
424,665
454,431
3,550,802
3,618,723
Pension liability
137,264,481
130,546,340
15,540,392
14,702,628
152,804,873
145,248,968
O PEB liability
32,023,782
23,458,113
4,429,330
3,284,479
36,453,112
26,742,592
Self insurance claim s pay able
18,546,313
16,468,698
—
—
18,546,313
16,468,698
N otes and loans payable
138,965
408,978
—
—
138,965
408,978
$ 204,415,984 189,971,615 32,209,640 31,311,870 236,625,624 221,283,485

Additional information on the City’s debt can be found in notes to the basic financial statements on pages 58 through 63 of this report.

As of June 30, 2021 Standard & Poor’s credit market services has assigned a rating of “AA” to the City.

State statutes limit the amount of general obligations debt a governmental entity may issue to 15% of its total assessed valuation. The current debt limitation for the City is $401,774,303. The City currently has no general obligation debt.

Next Year’s Budget
The fiscal year 2021-22 budget provides City programs at the same levels as pre-pandemic and sets a robust schedule of capital improvement projects. Revenues are conservatively forecast with modest growth. City staff will continue its efforts to hold General Fund expenditures flat, however, increasing costs for contract services.

The fiscal challenges the City continues to face are rising CalPERS and OPEB liabilities, self-insurance fund deficit, liability and workers compensation insurance costs, deferred maintenance of buildings and equipment, and aging infrastructure. Recognizing the realities of these fiscal challenges, the City will continue to emphasize future economic development efforts to continue to strengthen the City’s revenue base in all areas of the City.

Request for Information
This financial report is designed to provide a general overview of the City’s finances for readers of the financial statements. Questions concerning any of the information in this report or request for additional financial information should be addressed to the Director of Finance, 111 South First Street, Alhambra, CA 91801. 15 Basic Financial Statements

CITY OF ALHAMBRA
Statement of Net Position
June 30, 2021
Governmental Business-type
Assets and Deferred Outflows of Resources Activities Activities Total Cash and investments $ 84,944,531 23,275,368 108,219,899 Restricted cash and investments 14,657 588,322 602,979 Accounts receivable 9,068,415 5,470,474 14,538,889
Note receivable 362,888 — 362,888
Loans receivable 161,905 — 161,905
Internal balances 6,394,209 (6,394,209) —
Inventories 101,516 644,957 746,473
70,718 32,129 102,847
Capital assets not being depreciated 22,605,685 12,741,891 35,347,576 Capital assets, net of accumulated depreciation 120,961,459 67,067,738 188,029,197 Total assets 244,685,983 103,426,670 348,112,653
Deferred outflow of resources:

Deferred amounts from net pensions 22,460,549 2,589,403 25,049,952 Deferred amounts from total OPEB 9,789,525 1,325,277 11,114,802 Total deferred outflow of resources 32,250,074 3,914,680 36,164,754 Liabilities and Deferred Inflows of Resources
Liabilities:

Accounts payable
3,278,484
4,918,401
8,196,885
Accrued liabilities 3,601,220 — 3,601,220
Bond interest payable 291,298 82,655 373,953
Deposits 1,345,243 428,986 1,774,229
Unearned revenues 10,347,078 — 10,347,078
Retentions payable 71,490 365,976 437,466
Long-term liabilities:

Due within one year 6,628,952 1,079,280 7,708,232
Due in more than one year 197,787,032 31,130,360 228,917,392 Total liabilities 223,350,797 38,005,658 261,356,455 Deferred inflow of resources:

Deferred amounts from net pensions 2,351,641 300,428 2,652,069 Deferred amounts from total OPEB 3,809,585 556,130 4,365,715 Deferred amount from bond refunding 500,269 — 500,269 Total deferred inflow of resources 6,661,495 856,558 7,518,053 Net Position
Net investment in capital assets 128,928,306 65,976,917 194,905,223 Debt service 239 — 239
Law enforcement 825,859 — 825,859
Streets and transportation 26,478,672 — 26,478,672 Air quality 280,402 — 280,402
Community development 278,551 — 278,551
Water quality 856,278 — 856,278
Low and moderate housing 11,482,368 — 11,482,368
Unrestricted (122,206,910) 2,502,217 (119,704,693) Total net position $ 46,923,765 68,479,134 115,402,899 Prepaid items
Restricted for:

Net position:

See accompanying notes to financial statements
16 CITY OF ALHAMBRA
Statement of Activities
Year ended June 30, 2021
Net (expenses) revenues and
Program revenues
changes in net assets
Operating
Capital
Charges for
grants and
grants and
Governmental
Business-type
Expenses
services
contributions
contributions
activities
activities
Total
Functions/programs primary government:

Governmental activities:

General government
$
2,100,020
1,879,204
920,442
—
699,626
—
699,626
Public safety
59,203,389
4,988,397
455,783
—
(53,759,209)
—
(53,759,209)
Public works
10,215,124
1,895,300
2,036,844
4,002,815
(2,280,165)
—
(2,280,165)
Housing, health, and community development
10,288,135
7,660,449
4,293,805
—
1,666,119
—
1,666,119
Culture and recreation
10,740,729
593,882
272,654
—
(9,874,193)
—
(9,874,193)
Interest on long-term debt
648,865
—
—
—
(648,865)
—
(648,865)
Total governmental activities
93,196,262
17,017,232
7,979,528
4,002,815
(64,196,687)
—
(64,196,687)
Business-type activities:

Water
17,708,184
17,998,273
168,551
—
—
458,640
458,640
Sewer and storm drain
5,321,402
7,806,622
—
—
—
2,485,220
2,485,220
Sanitation
10,231,848
9,380,426
3,081
—
—
(848,341)
(848,341)
Golf course/clubhouse
559,277
258,495
—
—
—
(300,782)
(300,782)
33,820,711
35,443,816
171,632
—
—
1,794,737
1,794,737
Total
$
127,016,973
52,461,048
8,151,160
4,002,815
(64,196,687)
1,794,737
(62,401,950)
General revenues:

Property taxes
21,957,338
—
21,957,338
Sales tax
27,111,492
—
27,111,492
Utility users tax
3,840,748
—
3,840,748
Franchise tax
1,932,311
—
1,932,311
Business license tax
1,683,982
—
1,683,982
Other taxes
1,075,531
—
1,075,531
Unrestricted intergovernmental
10,920,149
—
10,920,149
Unrestricted investment earnings
81,432
24,295
105,727
Miscellaneous
3,343,750
31,875
3,375,625
Transfers
99,790
(99,790)
—
Total general revenues and transfers
72,046,523
(43,620)
72,002,903
Change in net position
7,849,836
1,751,117
9,600,953
39,073,929
66,728,017
105,801,946
Net position – end of year
$
46,923,765
68,479,134
115,402,899
Total business-type activities
Net position – beginning of year
17 See accompanying notes to financial statements
17 CITY OF ALHAMBRA
Balance Sheet – Governmental Funds
June 30, 2021
Special
Revenue Funds
American
Nonmajor
Totals
Housing
Rescue Plan
Governmental
Governmental
General
Asset
Act
Funds
Funds
Assets
Cash and investments
$
25,004,390
11,498,701
10,370,826
29,367,225
76,241,142
Restricted cash and investments
—
—
—
14,657
14,657
Receivables:

Accounts
7,994,444
—
—
961,964
8,956,408
Notes
362,888
—
—
—
362,888
Loans
—
—
—
161,905
161,905
7,311,998
—
—
—
7,311,998
Inventories
101,516
—
—
—
101,516
Prepaid items
29,735
—
—
35,000
64,735
Total assets
$
40,804,971
11,498,701
10,370,826
30,540,751
93,215,249
Liabilities, Deferred Inflows of Resources and Fund Balances Liabilities:

Accounts payable
$
1,716,841
16,333
23,748
1,238,014
2,994,936
Accrued liabilities
3,601,220
—
—
—
3,601,220
Due to other funds
—
—
—
96,870
96,870
Deposits
1,345,243
—
—
—
1,345,243
Retentions payable
5,727
—
—
65,763
71,490
Unearned revenues
—
—
10,347,078
—
10,347,078
Total liabilities
6,669,031
16,333
10,370,826
1,400,647
18,456,837
Deferred inflow of resources:

Unavailable revenues
850,082
—
—
375,299
1,225,381
Fund balances:

Nonspendable:

Prepaid items
29,735
—
—
35,000
64,735
Notes receivable
362,888
—
—
—
362,888
Inventories
101,516
—
—
—
101,516
Restricted for:

Law enforcement
75,292
—
—
499,856
575,148
Streets and transportation
—
—
—
26,361,726
26,361,726
Air quality
—
—
—
280,402
280,402
Community development
—
—
—
108,240
108,240
Police facility
—
—
—
162,669
162,669
Water quality
856,278
856,278
Debt service
—
—
—
239
239
Low and moderate housing
—
11,482,368
—
—
11,482,368
Committed for:

Emergency reserve
10,685,008
—
—
—
10,685,008
Legal liability reserve
3,000,000
—
—
—
3,000,000
Building and facility reserve
3,000,000
—
—
—
3,000,000
Equipment reserve
3,000,000
—
—
—
3,000,000
Art in public places
453,179
—
—
—
453,179
Assigned to:

Continuing appropriations
1,468,355
—
—
—
1,468,355
Lease commitments
2,148,794
—
—
—
2,148,794
Capital projects
817,619
—
—
485,389
1,303,008
Self insurance fund
5,610,436
—
—
—
5,610,436
Compensated absences fund
1,268,763
—
—
—
1,268,763
Total OPEB liability contribution
1,000,000
—
—
—
1,000,000
Unassigned
264,273
—
—
(24,994)
239,279
Total fund balances
33,285,858
11,482,368
—
28,764,805
73,533,031
Total liabilities and fund balances
$
40,804,971
11,498,701
10,370,826
30,540,751
93,215,249
Due from other funds
18 See accompanying notes to financial statements
18 CITY OF ALHAMBRA
Fund balances of governmental funds
$
73,533,031
Amounts reported for governmental activities in the statement of net position are different because:

Capital assets used in governmental activities are not financial resources, and therefore, are not reported in governmental funds.
141,170,310
Long-term liabilities are not due and payable in the current period, and therefore, are not reported in governmental funds.
(13,455,271)
Accrued interest payable for the period between the interest payment date and the end of the fiscal year is not reported as a payable in governmental funds. (291,298)
Governmental funds report premiums, discounts, and similar items when debt is first issued, (500,269)
whereas these amounts are deferred and amortized in the statement of net position.

Internal service funds are used by management to charge the costs of the City’s self-insured, compensated absences, and equipment operations to individual funds. A portion of the assets and liabilites of the internal service funds are included in governmental activities in the (13,209,563)
statement of net position.

Certain receivables recorded as unavailable revenue in governmental funds are recognized as revenue on the full-accrual basis, and therefore, are not reported as unavailable revenues in the statement of net position.
1,225,381
Pension related debt applicable to the City's governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities. Deferred outflows of resources and deferred inflows of resources related to pensions are only reported in the Statement of Net Position as the changes in these amount effects only the government-wide statements for governmental activities:

Deferred outflow of resources
22,190,434
Deferred inflows of resources
(2,334,816)
Net Pension liability
(135,527,465)
OPEB related debt applicable to the City's governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities. Deferred outflows of resources related to other post-employmnet benefits are only reported in the Statement of Net Position as the changes in these amounts effects only the government-wide statements for governmental activities:

Deferred outflow of resources
9,729,009
Deferred inflows of resources
(3,784,189)
Total OPEB liability
(31,821,529)
Net position of governmental activities
$
46,923,765
Balance Sheet – Governmental Funds (continued)
June 30, 2021
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position:
19 See accompanying notes to financial statements
19 CITY OF ALHAMBRA
Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds Year ended June 30, 2021
American
Nonmajor
Totals
Housing
Rescue Plan
Governmental
Governmental
General
Asset
Act
Funds
Funds
Revenues:

Taxes and assessments
$
51,131,962
—
—
6,505,493
57,637,455
Licenses and permits
4,097,829
—
—
—
4,097,829
Intergovernmental
13,080,374
—
577,256
13,516,419
27,174,049
Investment earnings
360,755
9,921
—
12,041
382,717
Charges for services
6,625,403
—
—
24,412
6,649,815
Fines and forfeitures
2,162,047
—
—
—
2,162,047
Other
2,503,307
128,552
—
561,306
3,193,165
Total revenues 79,961,677 138,473 577,256 20,619,671 101,297,077 Expenditures:

Current:

General government
902,811
—
2,694
—
905,505
Public safety
51,667,501
—
12,472
1,033,014
52,712,987
Public works
987,770
—
40,542
4,016,615
5,044,927
Housing, health, and community development
6,034,258
107,266
48,708
3,919,197
10,109,429
Culture and recreation
8,729,302
—
—
4,803
8,734,105
Capital outlay
953,281
—
472,840
4,309,549
5,735,670
Debt service:

Principal retirement
285,388
—
—
2,595,480
2,880,868
Interest and fiscal charges
17,305
—
—
767,365
784,670
Total expenditures 69,577,616 107,266 577,256 16,646,023 86,908,161 Excess (deficiency) of revenues over
expenditures
10,384,061
31,207
—
3,973,648
14,388,916
Other financing sources (uses):

Transfers in
300,161
—
—
3,663,479
3,963,640
Transfers out
(1,443,248)
—
—
(2,523,574)
(3,966,822)
Sale of capital assets
—
—
—
6,208
6,208
Total other financing sources (uses) (1,143,087) — — 1,146,113 3,026 Net change in fund balances 9,240,974 31,207 — 5,119,761 14,391,942 Fund balances at July 1 24,044,884 11,451,161 — 23,645,044 59,141,089 Fund balances at June 30 $ 33,285,858 11,482,368 — 28,764,805 73,533,031 Special
Revenue Funds
See accompanying notes to financial statements
20 CITY OF ALHAMBRA
Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds (continued) Year ended June 30, 2021
Amounts reported for governmental activities in the statement of activities are different because:

Net change in fund balances – governmental funds
$
14,391,942
Governmental funds report capital outlays as expenditures. However, in the statement of activities, the costs of those assets is allocated over their estimated useful lives, and reported as depreciation expense. This is the amount by which disposition of capital assets net, of $(67,791) and depreciation of ($5,025,407) exceeded capital (1,326,910)
capital outlay of $3,766,288 in the current period.

Repayment of long-term liability principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position. 2,880,868
Proceeds of long-term debt is an other financing source in the governmental funds, but the receipt increases long-term liabilities in the statement of net position. Also, governmental funds report premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. This amount is the net effect of these differences in the treatment of long-term debt and related items.
228,589
Accrued interest payable for the period between the interest payment date and the end of the fiscal year is not reported as an expense in governmental fund statements. This difference between the prior year’s accrued interest expense and the current year’s accrued interest expense is reported in the statement of activities. (92,784)
Other post-employment benefit expense reported in governmental funds include annual insurance premium payments. In the Statement of Activities, other post-employment benefit expense includes the change in the total other post-employment benefit liability, and related change in other post-employment benefit amounts for deferred outflows of resources and deferred inflow of resources. (1,848,399)
Internal service funds are used by management to charge the costs of the City’s self-insurance, compensated absences, and equipment operations to individual funds. The net revenues (expenses) of the internal service funds are reported with governmental activities included in governmental activities. (3,662,823)
Certain receivables recorded as unavailable revenue in governmental funds are recognized as revenue on the full-accrual basis, and therefore, are reported as revenues in the statement of activities. (797,264)
Pension expense reported in governmental funds includes the annual required contributions. In the Statement of Activities, pension expense includes the change in the net pension liability, and related change in pension amounts for deferred outflows of resources and deferred inflow of resources. (1,923,383)
Change in net position of governmental activities
$
7,849,836
21 See accompanying notes to financial statements
21 CITY OF ALHAMBRA
Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual General Fund
Year ended June 30, 2021
Variance with
final budget
Original
Final
Positive
budget
budget
Actual
(Negative)
Revenues:

Taxes:

Property taxes
$
14,442,640
14,442,640
15,451,845
1,009,205
Sales tax
22,229,580
24,446,000
26,247,892
1,801,892
Public safety sales tax
731,861
805,000
863,600
58,600
Franchise tax
1,500,000
1,500,000
1,849,452
349,452
Business license tax
1,600,000
1,500,000
1,683,982
183,982
Documentary transfer tax
225,000
225,000
310,279
85,279
Utility users tax
3,600,000
3,600,000
3,840,748
240,748
Other
735,000
585,000
884,164
299,164
Total taxes
45,064,081
47,103,640
51,131,962
4,028,322
Licenses and permits:

Building permits
1,570,000
1,570,000
2,483,447
913,447
Parking permits
1,479,000
1,410,000
1,566,609
156,609
Other
69,200
69,200
47,773
(21,427)
Total licenses and permits
3,118,200
3,049,200
4,097,829
1,048,629
Intergovernmental:

State vehicle license
10,828,759
10,828,759
10,920,149
91,390
State police training grants
14,946
14,946
7,703
(7,243)
Homeland security grants
75,800
362,703
38,435
(324,268)
Federal summer food grant
120,000
120,000
223,426
103,426
Coronavirus relief fund
—
1,071,632
1,071,632
—
Other
381,161
954,059
819,029
(135,030)
Total intergovernmental
11,420,666
13,352,099
13,080,374
(271,725)
Investment earnings:

Investment income
509,000
509,000
309,327
(199,673)
Jail lease revenue
111,000
111,000
51,428
(59,572)
Total investment earnings
620,000
620,000
360,755
(259,245)
Charges for services:

Zoning and subdivision
220,000
220,000
193,558
(26,442)
Plan checking fees
1,750,000
1,750,000
1,776,982
26,982
Paramedics
2,107,000
2,107,000
1,987,070
(119,930)
Park and recreation fees
301,410
301,410
585,328
283,918
Engineering fees and permits
701,000
701,000
855,423
154,423
Other
1,279,470
792,970
1,227,042
434,072
Total charges for services
6,358,880
5,872,380
6,625,403
753,023
Fines and forfeitures
2,226,750
2,066,750
2,162,047
95,297
Interfund
2,141,298
2,141,298
2,141,298
—
Other
238,200
283,150
362,009
78,859
Total revenues
71,188,075
74,488,517
79,961,677
5,473,160
22 See accompanying notes to financial statements
22 CITY OF ALHAMBRA
Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual General Fund
(Continued)
Year ended June 30, 2021
Variance with
final budget
Original
Final
Positive
budget
budget
Actual
(Negative)
Expenditures:

Current:

General government:

City council
$
302,919
302,919
199,059
103,860
City manager
1,138,768
1,774,066
1,469,009
305,057
City clerk
757,474
857,474
608,430
249,044
Communications
278,239
278,239
271,358
6,881
Finance
2,339,789
2,329,725
2,292,001
37,724
City attorney
501,803
466,770
211,007
255,763
Human resources
900,829
1,100,829
854,607
246,222
General government buildings
454,006
454,006
408,947
45,059
General services
365,268
373,460
346,171
27,289
Community promotion
258,925
241,635
93,835
147,800
Marketing
302,374
355,376
270,815
84,561
680,904
1,151,736
843,130
308,606
Cost allocation
(7,519,011)
(7,519,011)
(6,965,558)
(553,453)
Total general government
762,287
2,167,224
902,811
1,264,413
Public safety:

Police
29,706,620
29,991,370
28,652,623
1,338,747
Police – public safety augmentation
514,674
514,674
439,940
74,734
Parking enforcement
1,761,324
1,816,124
1,726,844
89,280
Fire
19,242,636
20,013,560
20,423,056
(409,496)
Fire – public safety augmentation
301,261
301,261
293,032
8,229
Disaster preparedness
41,113
41,113
30,108
11,005
Animal control
160,979
160,979
101,898
59,081
Total public safety
51,728,607
52,839,081
51,667,501
1,171,580
Public works:

Administration and engineering
1,134,163
1,134,163
987,770
146,393
Housing, health, and community development:

Building and planning
5,487,604
5,956,006
5,220,271
735,735
Code enforcement
533,794
493,794
643,547
(149,753)
Stormwater environmental compliance
433,113
433,113
170,440
262,673
Total housing, health, and
community development
6,454,511
6,882,913
6,034,258
848,655
Non-departmental
23 See accompanying notes to financial statements
23 CITY OF ALHAMBRA
Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual General Fund
(Continued)
Year ended June 30, 2021
Variance with
final budget
Original
Final
Positive
budget
budget
Actual
(Negative)
Culture and recreation:

Public library
$
3,287,227
3,136,227
2,769,688
366,539
Administration
752,820
752,820
790,517
(37,697)
Community services
687,936
687,936
540,582
147,354
Recreation services
1,007,995
1,007,995
968,617
39,378
Park operations
2,565,452
2,565,452
2,271,603
293,849
Lunch program
179,324
229,614
198,601
31,013
Aquatics
490,613
490,613
632,840
(142,227)
Senior support
614,785
614,785
556,854
57,931
Total culture and recreation
9,586,152
9,485,442
8,729,302
756,140
Capital outlay:

General government
98,321
284,636
256,966
27,670
Public safety
386,777
1,010,078
334,123
675,955
Housing, health, and community development
10,001
6,887
7,111
(224)
Culture and recreation
372,996
385,817
355,081
30,736
Total capital outlay
868,095
1,687,418
953,281
734,137
Debt service:

Principal retirement
285,388
285,388
285,388
—
Interest and fiscal changes
17,305
17,305
17,305
—
Total debt service
302,693
302,693
302,693
—
Total expenditures
70,836,508
74,498,934
69,577,616
4,921,318
Excess (deficiency) of revenues
over expenditures
351,567
(10,417)
10,384,061
10,394,478
Other financing sources (uses):

Transfers in
494,428
534,428
898,305
363,877
Transfers out
(1,463,310)
(1,678,782)
(2,041,392)
(362,610)
Total other financing sources (uses)
(968,882)
(1,144,354)
(1,143,087)
1,267
Net change in fund balances
(617,315)
(1,154,771)
9,240,974
10,395,745
Fund balance at July 1
24,044,884
24,044,884
24,044,884
—
Fund balance at June 30
$
23,427,569
22,890,113
33,285,858
10,395,745
24 See accompanying notes to financial statements
24 CITY OF ALHAMBRA
Changes in Fund Balance – Budget and Actual
Housing Asset
Year ended June 30, 2021
Variance with
final budget
Original
Final
Positive
budget
budget
Actual
(Negative)
Revenues:

Investment earnings
$
55,350
55,350
9,921
(45,429)
Other
2,049,448
2,049,448
128,552
(1,920,896)
Total revenues
2,104,798
2,104,798
138,473
(1,966,325)
Expenditures:

Current:

Housing, health, and community development
661,912
661,912
107,266
554,646
Net change in fund balances
1,442,886
1,442,886
31,207
(1,411,679)
Fund balance at July 1
11,451,161
11,451,161
11,451,161
—
Fund balance at June 30
$
12,894,047
12,894,047
11,482,368
(1,411,679)
Statement of Revenues, Expenditures, and
25 See accompanying notes to financial statements
25 CITY OF ALHAMBRA
Changes in Fund Balance – Budget and Actual
American Rescue Plan Act Fund
Year ended June 30, 2021
Variance with
final budget
Original
Final
Positive
budget
budget
Actual
(Negative)
Revenues:

Intergovernmental $ — — 577,256 577,256
Expenditures:

Current:

General government
—
2,500
2,694
(194)
Public safety
—
64,876
12,472
52,404
Public works
—
43,747
40,542
3,205
Culture and recreation
—
43,904
48,708
(4,804)
Capital outlay
—
600,128
472,840
127,288
Total expenditures — 755,155 577,256 177,899
Net change in fund balances — (755,155) — 755,155 Fund balance at July 1 — — — —
Fund balance at June 30 $ — — — —
Statement of Revenues, Expenditures, and
See accompanying notes to financial statements
26 CITY OF ALHAMBRA
Statement of Net Position
Proprietary Funds
June 30, 2021
Governmental
Activities –
Enterprise funds
Internal
Sewer and
Golf course/
Service
Assets and Deferred Outflows of Resources
Water
storm drain
Sanitation
clubhouse
Total
Funds
Current assets:

Cash and investments
$
10,798,992
10,919,989
1,556,387
—
23,275,368
8,703,389
Restricted cash and investments
429,998
158,324
—
—
588,322
—
Accounts receivable
4,622,131
800,657
34,526
13,160
5,470,474
112,007
Inventories
644,957
—
—
—
644,957
—
Prepaid items
32,129
—
—
—
32,129
5,983
Total current assets 16,528,207 11,878,970 1,590,913 13,160 30,011,250 8,821,379 Noncurrent assets:

Capital assets:

Land
1,923,817
169,595
—
3,675,661
5,769,073
237,950
Building, structures, and improvements
42,619,723
34,346,042
—
8,014,423
84,980,188
43,162
Machinery and equipment
3,063,342
1,857,965
521,992
175,307
5,618,606
7,262,276
Construction in progress
1,434,950
5,537,868
—
—
6,972,818
—
49,041,832 41,911,470 521,992 11,865,391 103,340,685 7,543,388 Less accumulated depreciation (12,918,669) (4,763,471) (401,940) (5,446,976) (23,531,056) (5,146,554) Total capital assets, net of accumulated
depreciation
36,123,163
37,147,999
120,052
6,418,415
79,809,629
2,396,834
Total noncurrent assets 36,123,163 37,147,999 120,052 6,418,415 79,809,629 2,396,834 Total assets 52,651,370 49,026,969 1,710,965 6,431,575 109,820,879 11,218,213 Deferred outflow of resources:

Deferred amounts from net pensions
1,920,466
307,058
361,879
—
2,589,403
270,115
Deferred amounts from total OPEB
1,004,547
140,194
180,536
—
1,325,277
60,516
Total deferred outflows
2,925,013
447,252
542,415
—
3,914,680
330,631
Liabilities and Deferred Inflows of Resources
Current liabilities:

Accounts payable
2,850,177
1,290,062
713,080
65,082
4,918,401
283,548
Interest payable
59,167
23,488
—
—
82,655
—
Due to other funds
—
—
—
1,543,996
1,543,996
5,671,132
Deposits
428,986
—
—
—
428,986
—
Retentions payable
86,600
279,376
—
—
365,976
—
Current portion – revenue bonds
825,000
160,000
—
—
985,000
—
Current portion - compensated absences
80,801
10,222
3,257
—
94,280
702,289
Current portion – self insurance claims payable
—
—
—
—
—
2,880,518
Total current liabilities 4,330,731 1,763,148 716,337 1,609,078 8,419,294 9,537,487 Long-term liabilities (net of current portion)
Revenue bonds
3,137,547
7,692,706
—
—
10,830,253
—
283,149
35,822
11,414
—
330,385
2,423,848
Net Pension liability
11,558,437
1,827,647
2,154,308
—
15,540,392
1,737,016
Total OPEB liability
3,357,394
468,551
603,385
—
4,429,330
202,253
Self insurance claims payable
—
—
—
—
—
15,665,795
Total long-term liabilities 18,336,527 10,024,726 2,769,107 — 31,130,360 20,028,912 Total liabilities 22,667,258 11,787,874 3,485,444 1,609,078 39,549,654 29,566,399 Deferred inflow of resources:

Deferred amounts from net pensions
219,443
37,189
43,796
—
300,428
16,825
Deferred amounts from total OPEB
421,543
58,829
75,758
—
556,130
25,396
Total deferred inflows
640,986
96,018
119,554
—
856,558
42,221
Net Position (Deficits)
Net Position (deficits)
Net investment in capital assets
31,548,685
27,889,765
120,052
6,418,415
65,976,917
2,396,834
Unrestricted (deficit)
719,454
9,700,564
(1,471,670)
(1,595,918)
7,352,430
(20,456,610)
Total net position (deficits) $ 32,268,139 37,590,329 (1,351,618) 4,822,497 73,329,347 (18,059,776) Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds (4,850,213) Net position of business-type activities $ 68,479,134
Compensated absences
See accompanying notes to financial statements
27 CITY OF ALHAMBRA
Proprietary Funds
Year ended June 30, 2021
Governmental
Activities –
Enterprise funds
Internal
Sewer and
Golf course/
Service
Water
storm drain
Sanitation
clubhouse
Total
Funds
Operating revenues:

Charges for services
$
17,998,273
7,806,622
9,380,426
258,495
35,443,816
232,265
Self-insurance/compensated absences contributions
—
—
—
—
—
12,085,592
Other
196,883
—
6,624
—
203,507
—
Total operating revenues
18,195,156
7,806,622
9,387,050
258,495
35,647,323
12,317,857
Operating expenses:

Purchase of water
3,277,112
—
—
—
3,277,112
—
Other water production
2,344,906
—
—
—
2,344,906
—
Water pumping, transmission, and distribution
2,419,965
—
—
—
2,419,965
—
General and administrative
8,260,135
—
—
—
8,260,135
—
Water quality and environmental
121,222
—
—
—
121,222
—
Water conservation
4,875
—
—
—
4,875
—
Sewer and storm maintenance
—
3,830,162
—
—
3,830,162
—
Sanitation
—
—
9,607,913
—
9,607,913
—
Recycling
—
—
224,165
—
224,165
—
Golf course
—
—
—
142,004
142,004
—
Golf course clubhouse
—
—
—
126,772
126,772
—
Claims and compensated absences expense
—
—
—
—
—
15,351,889
Vehicle expense
—
—
—
—
—
1,578,932
Depreciation
735,383
455,061
16,806
169,105
1,376,355
467,664
Total operating expenses
17,163,598
4,285,223
9,848,884
437,881
31,735,586
17,398,485
Operating income (loss)
1,031,558
3,521,399
(461,834)
(179,386)
3,911,737
(5,080,628)
Nonoperating revenues (expenses):

Interest income
565
22,555
1,175
—
24,295
5,587
Interest expense
(90,987)
(276,165)
—
—
(367,152)
—
Gain (loss) on disposal of equipment
2,030
(223,289)
3,465
—
(217,794)
16,563
Other income
—
—
—
—
—
112,338
Other expense
—
(319,834)
—
—
(319,834)
—
Total nonoperating revenues (expenses)
(88,392)
(796,733)
4,640
—
(880,485)
134,488
943,166
2,724,666
(457,194)
(179,386)
3,031,252
(4,946,140)
Transfers in
—
—
—
—
—
102,972
Transfers out
(12,846)
(15,585)
—
(71,359)
(99,790)
—
Change in net position
930,320
2,709,081
(457,194)
(250,745)
2,931,462
(4,843,168)
Net position (deficit) at July 1
31,337,819
34,881,248
(894,424)
5,073,242
(13,216,608)
Net position (deficit) at June 30
$
32,268,139
37,590,329
(1,351,618)
4,822,497
(18,059,776)
Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds (1,180,345)
Change in net position of business-type activities
$
1,751,117
Statement of Revenues, Expenses, and Changes in Net Position Income (loss) before transfers
28 See accompanying notes to financial statements
28 CITY OF ALHAMBRA
Governmental
Activities –
Enterprise funds
Internal
Sewer and
Golf course/
Service
Water
storm drain
Sanitation
clubhouse
Total
Funds
Cash flows from operating activities:

Cash received from customers
$
16,722,989
7,757,359
10,264,034
296,626
35,041,008
12,314,920
Cash paid insurance premiums and self-insurance claims
—
—
—
—
—
(12,427,161)
(9,392,168)
(2,376,826)
(9,118,374)
(299,870)
(21,187,238)
(1,025,433)
Cash paid to employees for services
(5,416,513)
(924,193)
(599,457)
—
(6,940,163)
(866,953)
Cash paid for compensated absences claims
(416,073)
(51,683)
(35,897)
—
(503,653)
(632,639)
Other operating cash received
196,883
—
6,624
—
203,507
112,338
Net cash provided by (used in) operating activities
1,695,118
4,404,657
516,930
(3,244)
6,613,461
(2,524,928)
Cash flows from noncapital financing activities:

Cash paid on loans from other funds
—
—
—
(1,023,042)
(1,023,042)
(3,760,920)
Cash received on loans from other funds
—
—
—
1,543,996
1,543,996
—
Cash received on loans to other funds
—
—
—
—
—
5,671,132
Transfers from other funds
—
—
—
—
—
102,972
Transfers to other funds
(12,846)
(15,585)
—
(71,359)
(99,790)
—
Net cash provided by (used in) noncapital financing activities (12,846)
(15,585)
—
449,595
421,164
2,013,184
Cash flows from capital and related financing activities:

Acquisitions and construction of capital assets
(1,622,893)
(5,652,535)
(29,227)
(446,476)
(7,751,131)
(624,951)
Proceeds from sale of capital assets
2,030
446
3,465
—
5,941
16,563
Principal paid on certificates of participation and capital lease obligations (780,000)
(150,000)
—
—
(930,000)
—
Interest paid on certificates of participation and capital lease obligations (203,500)
(288,731)
—
—
(492,231)
—
Net cash used in capital and related financing activities (2,604,363)
(6,090,820)
(25,762)
(446,476)
(9,167,421)
(608,388)
Cash flows from investing activities:

Interest received
565
22,555
1,175
—
24,295
5,587
Net cash provided by investing activities
565
22,555
1,175
—
24,295
5,587
Net increase (decrease) in cash and cash equivalents
(921,526)
(1,679,193)
492,343
(125)
(2,108,501)
(1,114,545)
Cash and cash equivalents at July 1
12,150,516
12,757,506
1,064,044
125
25,972,191
9,817,934
Cash and cash equivalents at June 30
$
11,228,990
11,078,313
1,556,387
—
23,863,690
8,703,389
Cash and investments
$
10,798,992
10,919,989
1,556,387
—
23,275,368
8,703,389
Restricted cash and investments
429,998
158,324
—
—
588,322
—
Total cash and cash equivalents
$
11,228,990
11,078,313
1,556,387
—
23,863,690
8,703,389
Noncash investing, capital, and financing activities:
(74,527)
(52,819)
(6,797)
—
(134,143)
(45,061)
Statement of Cash Flows
Decrease in fair value of investments
Cash paid to suppliers for goods and services
Proprietary Funds
Year ended June 30, 2021
29 See accompanying notes to financial statements
29 CITY OF ALHAMBRA
Governmental
Activities –
Internal
Sewer and
Golf course/
Service
Water
storm drain
Sanitation
clubhouse
Total
Funds
Reconciliation of operating income (loss) to net cash provided by (used in) operating activities:
$
1,031,558
3,521,399
(461,834)
(179,386)
3,911,737
(5,080,628)
Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities:

Depreciation and amortization
735,383
455,061
16,806
169,105
1,376,355
467,664
(Increase) decrease in accounts receivable
(1,275,284)
(49,263)
883,608
38,131
(402,808)
(2,937)
(Increase) decrease in inventories
(56,586)
—
—
—
(56,586)
—
(Increase) decrease in prepaid items
(11,408)
—
—
—
(11,408)
—
(Increase) decrease in deferred charges
—
—
—
—
—
10,822
Increase (decrease) in accounts payable
649,384
989,319
33,767
(6,546)
1,665,924
(105,637)
Increase (decrease) in interest payable
(13,000)
(625)
—
—
(13,625)
—
Increase (decrease) in self-insurance claims liability
—
—
—
—
—
2,077,615
Increase (decrease) in compensated absences
(21,654)
19,557
(27,669)
—
(29,766)
(38,155)
Increase (decrease) in net pension liability
614,062
102,720
120,982
—
837,764
77,643
Increase (decrease) in total OPEB liability
867,787
121,107
155,957
—
1,144,851
52,276
Increase (decrease) in deposits
21,420
—
—
—
21,420
—
Increase (decrease) in retentions payable
86,600
(584,177)
—
(24,548)
(522,125)
—
(Increase) decrease in deferred outflows
(1,145,559)
(170,000)
(212,827)
—
(1,528,386)
(77,698)
Increase (decrease) in deferred inflows
15,532
(441)
1,516
—
16,607
(18,231)
Other operating cash received (paid)
196,883
—
6,624
—
203,507
112,338
Total adjustments
663,560
883,258
978,764
176,142
2,701,724
2,555,700
Net cash provided by (used in) operating activities
$
1,695,118
4,404,657
516,930
(3,244)
6,613,461
(2,524,928)
Statement of Cash Flows
Proprietary Funds
Year ended June 30, 2021
Operating income (loss)
30 See accompanying notes to financial statements
30 THIS PAGE INTENTIONALLY LEFT BLANK
RDA
Successor Agency
Private Purpose
Assets
Trust Fund
Cash and investments
$
6,188,628
Restricted investments
4,181,850
Capital assets not being depreciated
222,561
Capital assets, net of accumulated depreciation
92,301
Total assets
10,685,340
Liabilities
Liabilities:

Interest payable
64,919
Due to governmental agencies
6,188,628
Long-term liabilities:

Due within one year
4,047,645
Total liabilities
10,301,192
Deferred inflow of resources:

Deferred amount from bond refunding
13,033
Net position:

Held in trust for the retirement of obligations of the former Alhambra Redevelopment Agency
$
371,115
June 30, 2021

CITY OF ALHAMBRA
Statement of Fiduciary Net Position
Fiduciary Funds
See accompanying notes to financial statements
31 RDA
Successor Agency
Private Purpose
Trust Fund
Additions:

Property taxes
$
4,194,750
Use of money and property
394,619
Total additions
4,589,369
Deductions:

Enforceable obligations
130,000
Loss on uncollectible receivable
26,230
Interest payments
228,975
Depreciation and amortization
26,372
Total deductions
411,577
Change in net position
4,177,792
Net deficit at July 1
(3,806,677)
Net position at June 30
$
371,115

CITY OF ALHAMBRA
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the year ended June 30, 2021
See accompanying notes to financial statements
32 Notes to Financial Statements

CITY OF ALHAMBRA
Notes to Basic Financial Statements
June 30, 2021

І
Summary of Significant Accounting Policies
The City of Alhambra (City), incorporated in 1903, is a Charter City that operates under a Council-City Manager form of government.

The accounting policies of the City conform to accounting principles generally accepted in the United States of America. The following is a summary of the more significant policies.

A. Reporting Entity
The City is a municipal corporation governed by an elected five-member council. As required by accounting principles generally accepted in the United States of America, the accompanying basic financial statements present the City (the primary government) and its component units. The component units discussed below are included in the City’s reporting entity because of the significance of their operational and financial relationships with the City. They are reported as part of and accountable to the City and blended into the government-wide and fund financial statements. 

The
Alhambra Parking Authority
(Parking Authority)

is governed by a five-member
board composed of City Council members. The Alhambra Parking Authority issued $6,565,000 lease revenue bonds on October 17, 2013. Although it is a legally separate entity from the City, it is considered a component unit of the City because of its purpose to provide parking for the business community. The activities of the Authority exclusively benefit the City. The City has operational responsibility for the Authority. The financial transactions of the Authority are reported in the accompanying basic financial statements within the other governmental funds column. Separate financial statements are not issued. 

The
Alhambra Golf Course Clubhouse Corporation
(Clubhouse Corporation) is
governed by a five-member board composed of City Council members. Although it is a legally separate entity from the City, the Clubhouse Corporation is reported as if it were part of the City because of its purpose to provide a Clubhouse complex for the City’s Municipal golf course. As of June 30, 2021, there were no financial transactions to be reported in the accompanying basic financial statements. Separate financial statements are not issued. 

The
Alhambra Capital Improvements Corporation and the Alhambra Public Financing Corporation
are governed by a five-member board composed of City Council members. The Alhambra Capital Improvements Corporation issued $27,000,000 Certificates of Participation in 1992. Although separate legal entities from the City, they are reported as if they were part of the City because of their purpose of providing a financing mechanism for capital projects for the City. The financial transactions of the Corporations are reported in the accompanying basic financial statements within the other governmental funds column. Separate financial statements are not issued.


The
Alhambra Facilities Financing Authority
(Financing Authority) is governed by a
five-member board composed of City Council members. The Financing Authority issued $8,005,000 wastewater revenue bonds on September 5, 2018. Although separate legal entities from the City, they are reported as if they were part of the City because of their purpose of providing a financing mechanism for capital projects for the City. The financial transactions of the Authority are reported in the accompanying basic financial statements within the enterprise funds. Separate financial statements are not issued. 

The Successor Agency to the City of Alhambra Redevelopment Agency was created in 2012 to serve as the custodian for the assets and to wind down the affairs of the former

33 CITY OF ALHAMBRA
Notes to Basic Financial Statements
June 30, 2021

Redevelopment Agency. Based on the nature of Successor agency’s custodial role, it is reported in a fiduciary private-purpose trust fund.

B. Government-Wide and Fund Financial Statements
The government-wide financial statements consist of the statement of net position and statement of activities and report information on all of the primary government and its component units.

Fiduciary activities are excluded. As a general rule, the effect of inter-fund activity has been eliminated from the government-wide financial statements. All internal balances in the statement of net position have been eliminated, with the exception of those representing balances between the governmental activities and the business-type activities, which are presented as internal balances and eliminated in the total government column. In the statement of activities, internal service fund transactions have been eliminated; however, those transactions between governmental and business- type activities have not been eliminated. Exceptions to this general rule are charges between the City’s Water Fund and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned.

Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support.

Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include public safety, public works, housing, health and community development, culture and recreation, and general administrative support services. The business-type activities of the City include water, sewer and storm drain, sanitation, and golf course/clubhouse.

The statement of activities demonstrates the degree to which the direct and indirect expenses of a given function are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Indirect expenses are allocated based on the annual cost allocation plan. Program revenues include: 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions, including special assessments that are restricted to meeting the operational or capital requirements of a particular function. Taxes and other items not properly included among program revenues are reported instead as general revenues.

Separate fund financial statements are provided for governmental funds and proprietary funds.

Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements.

C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The accounting and financial reporting treatment is determined by applicable measurement focus and basis of accounting. Measurement focus indicates the type of resources being measured such as current financial resources
or
economic resources
. The basis of accounting indicates the timing of
transactions or events for recognition in the financial statements.

The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Under the economic resources measurement focus, all assets and liabilities (whether current or non-current) associated with their activity are included on 34 CITY OF ALHAMBRA
Notes to Basic Financial Statements
June 30, 2021

their balance sheets. Operating statements present increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows.

Government funds financial statements are reported using the current financial resources measurement focus and the modified-accrual basis of accounting. Under the current financial resources measurement focus, revenues are recognized when they become measurable and available to finance operations during the current year. The term “available” is interpreted to mean collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period (i.e., 60 days). The City regards property taxes, sales taxes, and other taxes collected by other governmental entities, but not yet remitted to the City, various billings for services rendered, and revenues from the use of money and property, as susceptible to accrual.

Under the modified-accrual basis of accounting, expenditures are generally recognized when the related fund liability is incurred as under accrual accounting. However, debt service expenditures as well as expenditures related to compensated absences and claims (including workers’ compensation) and judgments are recorded only when payment is due. General capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of long-term debt and capital leases are reported as other financing sources.

Proprietary funds are accounted for on a flow of economic resources measurement focus and are maintained on the accrual basis of accounting. Revenues are recognized when they are earned, irrespective of when received, and expenses are recognized when they are incurred.

Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the Enterprise Funds and of the City’s Internal Service Funds are charges to customers for sales and services. Operating expense for Enterprise Funds and Internal Service Funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. Unbilled service receivables of $2,581,519 have been accrued at June 30, 2021.

The City considers the following funds as major government funds:


General Fund
– The General Fund is the City’s primary operating fund. It is used to account for resources traditionally associated with government which are not legally or by sound financial management to be accounted for in another fund.



Housing Asset Fund
– To account for the receipt and expenditure of the revenues received from housing assets of the former Alhambra Redevelopment Agency. 

American Rescue Plan Act Fund
– To account for the receipt and expenditure of the
revenues received from American Rescue Plan Act.

The City reports the following major proprietary funds:


Water Fund
– It is used to account for the operations of the City’s water utility. All activities necessary to provide this service are accounted for in this fund, including administration, operations, maintenance, capital improvement, billing, collection, and depreciation.


Sewer and Storm Drain Fund
– It is used to account for the provision of sewer and storm drain maintenance services to the residents of the City. All activities necessary to provide this 35 CITY OF ALHAMBRA
Notes to Basic Financial Statements
June 30, 2021

service are accounted for in this fund including, but not limited to, operations, maintenance, capital improvements, and depreciation.


Sanitation Fund
– It is used to account for the provision of sanitation, rubbish collection, and recycling services to the residents of the City. All activities necessary to provide this service are accounted for in this fund including, but not limited to, operations, contract costs, and depreciation.


Golf Course/Clubhouse Fund –
It is used to account for the operation of the City’s golf course and clubhouse complex. All activities necessary to provide this service are accounted for in this fund including, but not limited to, operations, maintenance, administration, capital improvements, debt service, and depreciation.

The City’s fund structure also includes the following fund types:


Special Revenue Fund
s – are used to account for proceeds of specific revenue sources that are legally restricted or otherwise designated for specific purposes. 

Debt Service Fund
s – are used to account for the collections, and payment of, resources used to repay long-term debt and related interest.


Capital Projects Fund
s – are used to account for financial resources used for the acquisition or construction of major capital facilities.

The City reports Internal Service Funds, which account for equipment, self-insurance, and compensated absences that provide services to other departments of the City on a cost-reimbursement basis. The internal service funds are presented in a single combined column in the proprietary funds financial statements. Because the principal users of the internal service funds are the City’s governmental entities, the assets and liabilities of the internal service funds are consolidated into the governmental activities column of the government-wide statement of net position.

Additionally, the City reports Fiduciary Fund Financial Statements (Private Purpose Trust Fund) which account for the non-housing related activities of the Successor Agency to the Alhambra Redevelopment Agency. Private-Purpose Trust Funds account for resources legally held in trust.

These funds are accounted for on a capital maintenance measurement focus and are maintained on the accrual basis of accounting.

D. Pooled Cash and Investments
In order to maximize investment return, the City pools its available cash for investment purposes.

The cash management pool is used essentially as a demand deposit account by the participating funds. Accordingly, the City has defined, for purposes of the preparation of its statements of cash flows, cash and cash equivalents as demand deposits, plus all investments maintained in the cash management pool, regardless of maturity period.

Interest and dividend income, realized gains and losses, and changes in fair value of investments arising from pooled cash and investments are normally apportioned to the participating funds based on the relationship of their respective monthly cash balances to the total pooled cash and investments, however the cash balances, of the Sanitation, Golf Course/Clubhouse, Capital Outlay, Health Insurance, Lighting and Landscape Maintenance, and the Transportation Capital Improvements funds are assigned directly to the General Fund.

The City’s investments are stated at fair value. Fair value is determined based upon market closing prices or bid/asked prices for regularly traded securities. The fair value of investment contracts are stated at cost and other investments are estimated based on similarly traded investments. The fair 36 CITY OF ALHAMBRA
Notes to Basic Financial Statements
June 30, 2021

value of mutual funds, government-sponsored investment pools, and other similar investments is stated at share value, or appropriate allocation of fair value of the pool, if separately reported.

Certain money market investments with initial maturities at the time of purchase of less than one year are recorded at cost. The calculation of realized gains and losses is independent of the calculation of the net increase or decrease in fair value of investments. Realized gains and losses on investments that had been held in more than one fiscal year and sold in the current fiscal year may have been recognized as an increase or a decrease in fair value of investments reported in a prior year.

E. Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year is referred to as
interfund receivables/interfund payables
, i.e., the current
portion of interfund loans, or
advances to/from other funds
, the noncurrent portion of interfund
loans. All other outstanding balances between funds are reported as interfund receivables/interfund
payables
. Any residual balances outstanding between the governmental activities and the business- type activities are reported in the government-wide financial statements as internal balances
.

Advances between funds, as reported in the fund financial statements, are classified as either nonspendable fund balance in the applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources or they are restricted.

All accounts, notes, and loans receivable are shown net of an allowance for uncollectible accounts and estimated refunds due. As of June 30, 2021, the allowance for uncollectible accounts for governmental and business-type activities is $11,135,712 and $4,302, respectively.

F. Inventories
Inventories of the Enterprise Funds, consisting primarily of replacement parts, are recorded using the average-cost method. Inventories of the General Fund consist of expendable supplies held for consumption and are recorded using the average-cost method. Inventory is recorded as an expenditure at the time individual items are consumed.

G. Property Held for Resale
Property held for resale would be recorded at the lower of cost or estimated net realizable value.

There is no property held for resale at June 30, 2021.

H. Capital Assets
Capital assets, which include land, buildings and improvements, equipment, and infrastructure assets (e.g., roads, sidewalks, traffic lights and signals, street lights, and similar items), are reported in the applicable governmental or business-type activities columns in the governmental-wide financial statements. Capital assets are defined by the City as assets with an initial individual cost of $5,000 or more and an estimated useful life in excess of one year. Such assets are recorded at historical cost. Donated capital assets are recorded at acquisition value at the date of acquisition.

The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives is not capitalized.

Major outlays for capital assets and improvements are capitalized as projects are constructed. 37 CITY OF ALHAMBRA
Notes to Basic Financial Statements
June 30, 2021

Capital assets of the City are depreciated using a straight-line method over the following estimated useful lives:

Buildings
15 to 50 years
Structures and improvements
15 to 50 years
Utility systems
80 years
Infrastructure
11 to 85 years
Machinery and equipment
3 to 10 years

I. Compensated Absences
It is the policy of the City to pay accumulated vacation, holiday, compensatory time and vested sick leave benefits to employees upon retirement or termination of employment. Benefits accumulated will vary depending upon the employee’s bargaining unit. All vacation, holiday, compensatory time, and sick leave are accrued when incurred in the government-wide and proprietary fund financial statements. A liability is reported in the governmental funds only if they have matured, for example, as a result of employee resignations or retirements.

The maximum accumulation of vacation is limited based on the employee’s years of service with the City. Employees are paid 100% of their accumulated vacation pay when they terminate employment for any reason.

Employees may accumulate sick leave without limitation as to the number of hours. Accumulated sick leave is paid upon retirement for up to a maximum of 25 days of sick leave provided the employee has accumulated 100 days of sick leave, 15 years of service and hired prior to July 2, 1994. Employees may also convert unused sick leave to pension service credit upon retirement.

J. Net Position and Fund Balances
In the government-wide financial statements and proprietary funds financial statements, net positions are reported in three categories: net investment in capital assets; restricted net position; and unrestricted net position. Net investment in capital assets represent capital assets less accumulated depreciation and reduced by outstanding balances of any bonds, mortgages, notes, or other liabilities that are attributable to the acquisition, construction, or improvement of those assets.

Net investment in capital assets does not include the unspent proceeds of capital debt. Restricted net position represents net position restricted by parties outside of the City (such as creditors, grantors, contributors, laws, and regulations of other governments). All other net position is considered unrestricted.

When both restricted and unrestricted resources are available for use, it is the government’s policy to use restricted resources first, then unrestricted resources as they are needed.

Fund balances are reported in accordance with Governmental Accounting Standards Board Statement No. 54, “Fund Balance Reporting and Governmental Fund Type Definitions”. The fund balances reported on the fund statements consist of the following categories:


Nonspendable Fund Balance
– This classification includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact.


Restricted Fund Balance
– This classification includes amounts that can be spent only for specific purposes stipulated by constitution, external resource providers or through enabling legislation.
38 CITY OF ALHAMBRA
Notes to Basic Financial Statements
June 30, 2021



Committed Fund Balance
– This classification includes amounts that can be used only for the specific purposes determined by a formal action (ordinance) of the government’s highest level of decision-making authority. The City Council is considered the highest authority for the City. The limitation imposed remains in place until a similar action is taken (the adoption of another ordinance) to remove or revise the limitation. 

Assigned Fund Balance
– This classification includes amounts to be used by the government for specific purposes but do not meet the criteria to be classified as restricted or committed. In governmental funds, other than the general fund, assigned fund balance represents the remaining amount that is not restricted or committed. The City Council has by resolution authorized the City Manager to assign fund balance. Unlike commitments, assignments generally only exist temporarily. In other words, an additional action does not normally have to be taken for the removal of an assignment. 

Unassigned Fund Balance
– This classification includes the residual balance for the government’s general fund and includes all spendable amounts not contained in other classifications. In other funds, the unassigned classification is used only to report a deficit balance resulting from overspending for specific purposes for which amounts had been restricted, committed or assigned.

When an expenditure is incurred for purposes for which both restricted and unrestricted fund balances are available, the City’s policy is to apply restricted fund balance first.

When an expenditure is incurred for purposes for which committed, assigned or unassigned fund balances are available, the City’s policy is to apply committed fund balance first, then assigned fund balance, and finally unassigned fund balance.

At June 30, 2021, the City has, by ordinances adopted by the City Council, committed fund balance for use in emergencies or potential future revenue shortfalls of $10,685,008, legal liability reserve of $3,000,000, building and facility reserve of $3,000,000, equipment reserve of $3,000,000, and arts in public places program of $453,179.

K. Self-Insurance Programs and Purchased Insurance
The City is self-insured for workers’ compensation, general, automobile, and public liability claims.

The City’s estimated liability for claims as of June 30, 2021 is based on the independent claim manager’s estimate of probable losses plus an amount estimated for incurred but not reported claims. An Internal Service Fund is used to account for the collection of premiums from various City departments related to workers’ compensation claims and general claims liabilities. Premiums are established based on historical claims experience.

Risk Pool Membership - The City is a member of the California Joint Powers Insurance Authority (Authority). The Authority is composed of 123 California public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq. The Authority arranges and administers programs for the pooling of self-insured losses, purchases excess insurance and reinsurance, and arranges for group purchased insurance for property and other lines of coverage. The California JPIA began covering claims of its members in 1978. Each member government has an elected official as its representative on the Authority’s Board of Directors. The Board operates through a nine-member Executive Committee. 39 CITY OF ALHAMBRA
Notes to Basic Financial Statements
June 30, 2021

Excess Liability Program - Liability coverage includes auto liability, employment practices liability, public officials’ errors and omissions, bodily injury, personal injury, third party property damage, advertising injury, and employee benefit administration liability. The City has a retained limit of $750,000 per occurrence. The overall coverage limit for each member, including all layers of coverage, is $50 million per occurrence. The coverage structure is composed of a combination of pooled self-insurance, reinsurance and excess insurance. Additional information concerning the coverage structure is available on the Authority’s website:
https://cjpia.org/coverage/risk-sharing-
pools/
.

Excess Workers’ Compensation Program - The City has a retained limit of $500,000 per occurrence for workers’ compensation claims. The Authority’s pooled retention is $1 million per occurrence with reinsurance to statutory limits under California Workers’ Compensation Law. Employer’s Liability losses are pooled among members to $1 million. Coverage from $1 million to $5 million is purchased as part of a reinsurance policy, and Employer’s Liability losses from $5 million to $10 million are pooled among members.

Purchased Insurance - The City also participates in the following coverage programs provided by the Authority:
• All-Risk Property Protection Program. This insurance protection is underwritten by several insurance companies. The City’s property is currently insured according to a schedule of covered property submitted by the City to the Authority. The total insured value of scheduled City property is $260,786,261. There is a $10,000 deductible per occurrence except for non- emergency vehicle insurance which has a $2,500 deductible. • Earthquake and Flood Insurance. This coverage is part of the Property Protection Program.

The City has total insured values of $260,786,261 scheduled for coverage under this program. There is a deductible of 5% per unit of value with a minimum deductible of $100,000.
• Pollution Legal Liability Insurance Program. The policy covers sudden and gradual pollution of scheduled property, streets, and storm drains owned by the City. Coverage is on a claims- made basis. There is a $250,000 deductible. The Authority has an aggregate limit of $20 million
• Crime Insurance Program. Formerly called Blanket Fidelity Bond, this policy covers faithful performance, depositor’s forgery, theft of money and securities, and computer fraud related to the transfer of money. The policy limit is $10,000,000, and the deductible is $25,000. • Special Event Tenant User Liability Insurance. This coverage protects against liability damages by requiring tenant users of certain property to purchase low-cost tenant user liability insurance for certain activities on City property. The insurance premium is paid by the tenant user and is paid to the City according to a schedule. The City then pays the insurance broker and/or carrier. The insurance is facilitated by the Authority.

Adequacy of Protection - During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or insured liability coverage in 2020-21. Financial statements of the Authority may be obtained from its administrative office located at 8081 Moody Street, La Palma, California 90623, or by calling (562) 467-8700.Additional claims and lawsuits have been filed against the City in the normal course of business. It is reasonably possible that the City may be liable for claims not to exceed the above stated retained limits for liability and workers’ 40 CITY OF ALHAMBRA
Notes to Basic Financial Statements
June 30, 2021

compensation. In the opinion of management, the resolution of these matters will not have a material adverse effect on the financial condition of the City. (see notes IV.E and V.C.).

L. Property Taxes
The County of Los Angeles (County) has the responsibility for property tax and assessment levies and collections. The County’s property tax calendar is July 1 to June 30. Property taxes attach as an enforceable lien on the property as of the preceding January 1. Property taxes are levied on or before the first business day of September of each year. Property tax bills, which include assessments, are due in equal installments on November 1 and February 1 and are delinquent with penalties after December 10 and April 10, respectively, of each property tax year. Delinquent property tax receivables are offset by unavailable revenue.

M. Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, deferred outflows of resources, liabilities, deferred inflows of resources and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses/expenditures during the reporting period. Actual results could differ from those estimates.

N. Deferred Outflows/Inflows of Resources:

In addition to assets, the Statement of Net Position reports a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources
, represents a
consumption of net position that applies to future periods and will not be recognized as an outflow of resources (expense/expenditure) until that time. The City has the following items that qualify for reporting in this category:


Deferred outflows related to net pensions - include amounts equal to employer contributions made after the measurement date of the net pension liability and other items including changes in actuarial assumptions and differences between actual and expected experience. The other items are amortized and reported as pension expense in future fiscal years based on the average of the expected remaining service lives of all employees that are provided with benefits through the plan.



Deferred outflows related to total OPEB liabilities - include amounts equal to employer contributions made after the measurement date of the total OPEB liabilities, and other items including changes in assumptions and differences between actual and expected experience. The other items are amortized and reported as total OPEB liability expense in future fiscal years based on the average of the expected remaining service lives of all employees that are provided with benefits through the plan.

In addition to liabilities, the Statement of Net Position and the Governmental Funds Balance Sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element,
deferred inflows of resources
, represents an acquisition of net position that applies to future periods and will not be recognized as an inflow of resources (revenue) until that time. The City has the following items that qualify for reporting in this category:


Deferred inflows from
unavailable revenues
, which arises only under a modified accrual basis of
accounting, is reported only in the governmental funds balance sheet. The governmental funds 41 CITY OF ALHAMBRA
Notes to Basic Financial Statements
June 30, 2021

report unavailable revenues from two sources, which are taxes and grants. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available.



Deferred amount on bond refunding, net of accumulated amortization reported in the government-wide statement of net position and statement of fiduciary net position. A deferred gain on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt.



Deferred inflows related to net pensions - include amounts for changes in actuarial assumptions difference between expected and actual experience and net differences between projected and actual earnings on investments of the pension plan fiduciary net position. These amounts are amortized and reported as pension expense in future fiscal years based on the average of the expected remaining service lives of all employees that are provided with benefits through the plan.



Deferred inflows related to total OPEB liabilities - include amounts resulting from change in assumptions and differences between actual and expected experience. These amounts are amortized and reported as total OPEB liability expense in future fiscal years based on the average of the expected remaining service lives of all employees that are provided with benefits through the plan.

O. Pensions:

For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City of Alhambra’s California Public Employees’ Retirement System (CalPERS) plans (Plans) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense of the City’s other pension plan the benefit payments are recognized when due and payable in accordance with the benefit terms.

42 CITY OF ALHAMBRA
Notes to Basic Financial Statements
June 30, 2021

II
Reconciliation of Fund Financial Statements to Government-Wide Financial Statements Amounts reported for governmental activities in the statement of net position are different from those reported for governmental funds in the balance sheet. The following provides a reconciliation of those differences:

Total
governmental
activities
Other
Total
Long-term
Internal
adjustments
Statement of
governmental
assets (1) and
Service
and
net position
Assets
funds
liabilities (2)
Fund (3)
eliminations (4)
totals
Cash and investments $ 76,241,142 — 8,703,389 — 84,944,531 Restricted cash and investments
14,657
—
—
—
14,657
Receivables:

Accounts
8,956,408
—
112,007
—
9,068,415
Notes
362,888
—
—
—
362,888
Loans
161,905
—
—
—
161,905
Due from other funds
7,311,998
—
4,850,213
(5,768,002)
6,394,209
Inventories
101,516
—
—
—
101,516
64,735
—
5,983
—
70,718
Capital assets not being depreciated
—
22,367,735
237,950
—
22,605,685
Capital assets, net of accumulated
depreciation
—
118,802,575
2,158,884
—
120,961,459
Total assets 93,215,249 141,170,310 16,068,426 (5,768,002) 244,685,983 Deferred outflow of resources
Deferred amounts from net pensions
—
—
270,115
22,190,434
22,460,549
Deferred amounts from total OPEB
—
—
60,516
9,729,009
9,789,525
Total deferred outflow
—
—
330,631
31,919,443
32,250,074
Total assets and deferred
outflow of resources
$
93,215,249
141,170,310
16,399,057
26,151,441
276,936,057
Liabilities and Fund Balances
Liabilities:

Accounts payable
$
2,994,936
—
283,548
—
3,278,484
Accrued liabilities
3,601,220
—
—
—
3,601,220
Bond interest payable
—
—
—
291,298
291,298
Deposits
1,345,243
—
—
—
1,345,243
Retentions payable
71,490
—
—
—
71,490
Due to other funds
96,870
—
5,671,132
(5,768,002)
—
Unearned revenues
10,347,078
—
—
—
10,347,078
Long-term liabilities
—
180,804,265
23,611,719
—
204,415,984
Total liabilities 18,456,837 180,804,265 29,566,399 (5,476,704) 223,350,797 Deferred inflow of resources:

Unavailable resources
1,225,381
—
—
(1,225,381)
—
Deferred amounts from net pensions
—
—
16,825
2,334,816
2,351,641
Deferred amounts from total OPEB
—
—
25,396
3,784,189
3,809,585
Deferred amount from bond refunding
—
—
—
500,269
500,269
Total deferred inflow
1,225,381
—
42,221
5,393,893
6,661,495
Total fund balances/
net position 73,533,031 (39,633,955) (13,209,563) 26,234,252 46,923,765 Total liabilities and fund
balances/net position
$
93,215,249
141,170,310
16,399,057
26,151,441
276,936,057
Prepaid items

43 CITY OF ALHAMBRA
Notes to Basic Financial Statements
June 30, 2021

(1) Capital assets used in government activities are not current financial resources and, therefore, are not reported in the balance sheet $
141,170,310

(2) Long-term liabilities are not due and payable in the current period and, therefore, are not reported in
the balance sheet
Certificates of participation $ (5,650,000)

Lease revenue bonds (5,665,000)

Deferred amount on bond issuance 43,857

Notes and loans payable (138,965)

Compensated absences (3,126,137)

Capital lease obligations (2,045,163)

Net Pension liability (137,264,481)

Total OPEB liability (32,023,782)

Self-insurance liabilities (18,546,313)

Internal Service Funds included in governmental activities 23,611,719

$
(180,804,265)

(3) Internal Service Funds are used by management to charge the costs of the City's self-insurance, compensated absences, and equipment operations to individual funds. The allocated assets and liabilities of the Internal Service Funds are included in governmental activities in the statement of net position
$
(13,209,563)

(4) Other adjustments and eliminations:

Accrued interest payable for the period between the interest payment date and the end of the fiscal year is not reported as a payable in governmental funds $ (291,298)

Other long-term assets are not available to pay for current period expenditures and, therefore, are deferred in the funds and recognized as revenues in the statement of activities 1,225,381

Pension and OPEB related debt applicable to the City's
governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities.

Deferred outflows of resources and deferred inflows of resources related to pensions, OPEB, and bond refunding are only reported in the Statement of Net Position as the changes in these amounts effects only the government-wide statements for
governmental activities:

Deferred outflow of resources - net pension 22,190,434

Deferred outflow of resources - total OPEB 9,729,009

Deferred inflow of resources - net pension (2,334,816)

Deferred inflow of resources - total OPEB (3,784,189)

Deferred inflow of resouces - bond refunding (500,269)

$
26,234,252

Amounts reported for business-type activities in the statement of net position are different from those reported for proprietary funds in the balance sheet. The following provides a reconciliation of those differences:
44 CITY OF ALHAMBRA
Notes to Basic Financial Statements
June 30, 2021

Amounts reported for business-type activities in the statement of net position are different from those reported for proprietary funds in the balance sheet. The following provides a reconciliation of those differences:

Total
Statement of
Enterprise
net position
Assets Funds Eliminations (1) totals
Cash and investments $ 23,275,368 — 23,275,368
Restricted cash and investments
588,322
—
588,322
Accounts receivable
5,470,474
—
5,470,474
Due from other funds
—
(6,394,209)
(6,394,209)
Inventories
644,957
—
644,957
Prepaid items
32,129
—
32,129
Capital assets:

Land
5,769,073
—
5,769,073
Building, structures, and
improvements
84,980,188
—
84,980,188
Machinery and equipment
5,618,606
—
5,618,606
Construction in progress
6,972,818
—
6,972,818
Total capital assets 103,340,685 — 103,340,685
Less accumulated depreciation (23,531,056) — (23,531,056) Total capital assets, net of
accumulated depreciation
79,809,629
—
79,809,629
Deferred outflow of resources 3,914,680 — 3,914,680
Total assets and defered outflow
of resources
113,735,559
(6,394,209)
107,341,350
Liabilities and Net Position
Accounts payable
4,918,401
—
4,918,401
Bond interest payable
82,655
—
82,655
Due to other funds
1,543,996
(1,543,996)
—
Deposits
428,986
—
428,986
Retentions payable
365,976
—
365,976
Long-term liabilities:

Due within one year
1,079,280
—
1,079,280
Due in more than one year
31,130,360
—
31,130,360
Deferred inflow of resources 856,558 — 856,558
Total liabilities and deferred
inflow of resources
40,406,212
(1,543,996)
38,862,216
Total net position $ 73,329,347 (4,850,213) 68,479,134 (1)
The interfund payable resulting from a cash overdraft of $1,543,996 between enterprise funds and governmental funds is being eliminated. Also, the costs in excess of charges to business-type activities from internal service funds is $4,850,213.

45 CITY OF ALHAMBRA
Notes to Basic Financial Statements
June 30, 2021

III
Stewardship, Compliance, and Accountability
A. Budgetary Information
The City adheres to the following general procedures in establishing its annual budget, which is reflected in the accompanying basic financial statements:


Annual budgets are adopted by the City Council, which provide for the general operations of the City. Such budgets include estimated revenues and authorized appropriations for all Governmental Fund Types.


The City Manager is authorized to transfer appropriations within any fund. Expenditures may not exceed appropriations at the fund total level without approval by the City Council. The budgeted amounts used in the basic financial statements represent the final adjusted amounts, which were increased $7,465,905 due to supplemental appropriations made by the City Council during the year.


The budget for all funds is formally integrated into the accounting system and employed as a management control device during the year.


Budgets for Governmental Fund Types are adopted on a modified-accrual basis. 

Unexpended or unencumbered budget appropriations lapse at the end of the fiscal year.

Encumbered appropriations are re-appropriated in the ensuing year’s budget by action of the City Council.

B. Deficit Fund Balances/Net position, Accumulated Deficits The following funds had deficit fund balances or net deficits at June 30, 2021:

Other Governmental Funds:

Home and Rental Rehabilitation Fund - Special Revenue Fund 24,994 Enterprise Fund:

Sanitation Fund 1,351,618
Internal Service Fund:

Self-Insurance
18,443,560
Compensated Absences
1,268,763



The fund deficit in the Home and Rental Rehabilitation Grant Fund will be eliminated through future grant revenues.


The net deficit in the Sanitation Enterprise Fund is expected to be eliminated through future revenues and transfers from the General Fund.


The net deficit in the Self-Insurance Internal Service Fund is not expected to be eliminated in the near future. It is anticipated when the City’s financial situation improves future charges will be increased within City’s operating departments and transfers from the General Fund. 

The net deficit in the Compensated Absences Fund is expected to be eliminated fiscal year 21-22 through transfer from the General Fund.
46 CITY OF ALHAMBRA
Notes to Basic Financial Statements
June 30, 2021

IV
Detailed Notes on all Funds

A. Cash and Investments
Cash and investments as of June 30, 2021 are classified in the accompanying financial statements as follows:

Statement of Net Position:

Cash and investments
$
108,219,899
Restricted cash and investments
602,979
Total cash and investments
$
108,822,878

Cash and investments as of June 30, 2021 consist of the following:

Cash on hand
$
22,100
Deposits with financial institutions
14,064,657
Investments
94,736,121
Total cash and investments $ 108,822,878

1. Deposits
Custodial credit risk-deposits

In the case of deposits, this is the risk that in the event a bank failure, the government’s deposits may not be returned to it. The California Government Code requires California banks and savings and loan associations to secure a city’s deposits by pledging government securities as collateral. The fair value of pledged securities must equal at least 110% of a city’s deposits.

California law also allows financial institutions to secure city deposits by pledging first trust deed mortgage notes having a value of 150% of a city’s total deposits. At June 30, 2021, the carrying amount of the City’s restricted and unrestricted deposits (including cash and certificates of deposit) was $14,064,657 while the corresponding bank balances were $14,631,727, and was covered by federal depository insurance or collateralized in accordance with state law. The difference between the carrying amount of deposits and the corresponding bank balance is due to outstanding checks at year-end.

47 CITY OF ALHAMBRA
Notes to Basic Financial Statements
June 30, 2021

2. Investments
The City’s investment policy, as approved by the City Council, authorizes the City to invest in certain types of investments as authorized by the California Government Code.

The table below identifies these
investment types
and the related maximum percentages by the
California Government Code (or the City’s investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City’s investment policy, where more restrictive) that address interest rate risk, credit risk
, and
concentration of credit risk
. This table does not address investments of debt proceeds held by bond trustee that are governed by the provision of debt agreements of the City, rather than the general provisions of the California Government Code or the City’s investment policy.

Authorized
Investment Type
Maximum
Maturity
Maximum
Percentage
Portfolio

Maximum
Investment
In One Issuer

U.S. Treasury Securiti
es

5 yea
rs

None

None

U.S.

Government Agency Securi
ties

5 years

7 0
%

30%

Banker’s A
c
cep
tance
s

180
days

40%

30 %

Commercial paper

270 days

25%

None

Negotiable Certificates of Deposit

5 years

30%

None

Repurchase Agreeme
n
ts

1 year

No
ne

None

Medium
-
Term Not
es

5 yea
rs

30%

None

Recei
vable
-
Backed Securities

5 years

20%

None

Money

Market Mu
t
ual

Fund
s

N/A

20%

1 0%

Local Agency Investment Funds (LAIF)

N/A

None

$
7 5 million

Investments authorized under debt agreements
Investments authorized for funds held by bond trustee include, U.S. Treasury Obligations, U.S.

Government Sponsored Enterprise Securities, Certificates of Deposits, Commercial Paper, Local Agency Bonds, Bankers’ Acceptances, Money Market Mutual Funds, Repurchase Agreements, Investment Contracts and any other investments permitted by bond insurer and are legal investments under State laws. There were no limitations on the maximum amount that can be invested in one issuer or maximum percentage allowed, however the maximum maturity of an investment is five years, except for the maturity of Banker’s Acceptance and Certificates of Deposits which are limited to 30 days and Investment Contracts which are limited by agreement.

48 CITY OF ALHAMBRA
Notes to Basic Financial Statements
June 30, 2021

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. In accordance with its policy, the City manages its exposure to declines in fair values by limiting the weighted average maturity of its investment portfolio as a whole to 24 months. Investments held by trustee are not subject to the 24 month maturity limitation.

Investment Type Total
12 Months or
less
13 to 24
Months
25 to 60
Months
U.S Government Sponsored Entity
Securities
$ 19,926,800
-
-
19,926,800

Local Agency Investment Fund 74,698,887
74,698,887
-
-

Money Market Funds 86,508
86,508
-
-

Held by Bond Trustee:

Money Market Funds 23,926
23,926
-
-

Total $ 94,736,121
74,809,321
-
19,926,800

Remaining Maturity (in Months)

Credit Risk
Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. The City mitigates this risk by restricting investment to those meeting the minimum rating required by (where applicable) the California Government Code, the City’s investment policy, or debt agreement. The table below presents the minimum and the actual rating by Standards and Poor as of year end for each investment type:

Investment Type Total AAA AA+ Unrated
U.S Government Sponsored Entity
Securities
$ 19,926,800
N/A -
19,926,800
-

Local Agency Investment Fund
74,698,887
None -
-
74,698,887

Money Market Funds 86,508
A 86,508
-
-

Held by Bond Trustee:

Money Market Funds 23,926
A 23,926
-
-

Total $ 94,736,121
110,434
19,926,800
74,698,887

Minimal
Legal
Rating
Ratings as of Year End

49 CITY OF ALHAMBRA
Notes to Basic Financial Statements
June 30, 2021

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 the total City investments are as follows:

Issuer
Investment Type
Amount
Federal Home Loan Bank U.S Government Sponsored Entity Securities $ 15,935,100

Custodial Credit Risk – Investments
For an investment, this is the risk that, in the event or the failure of the counterparty, the government will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. To protect against fraud, embezzlement, or losses caused by collapse of individual securities dealers, all securities owned by the City (except for investments held by bond trustee) are held in safekeeping by the City’s custodial bank or a third party bank trust department, acting as agent for the City under the terms of a custody agreement.

Investments of $23,926 were purchased and held by the bond trustee.

3. State Treasurer’s Local Agency Investment Funds
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 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.

4. Restricted Cash and Investments
Fiscal agents on behalf of the City hold and invest funds in the City’s name from long-term debt issuances, including construction, debt service, and reserve fund balances. Fiscal agents are mandated by bond indenture as to the types of investments in which debt proceeds can be invested.

5. Fair Value Measurements

The City categorized its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the relative inputs used to measure the fair value of the investments. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).

50 CITY OF ALHAMBRA
Notes to Basic Financial Statements
June 30, 2021

The City has the following recurring fair value measurements as of June 30, 2021:

Investment Type Total
U.S Government Sponsored Entity
Securities
$ -
$ 19,926,800
-
$ 19,926,800

Total Leveled Investments $ -
$ 19,926,800
-
19,926,800

Local Agency Investment Fund 74,698,887

Money Market Mutual Funds 86,508

Held by Bond Trustee:

Money Market Mutual Funds 23,926

Total Investment Portfolio $ 94,736,121

Quoted Inputs
Level 2
Quoted
Prices
Level 1
Unobservable
Inputs
Level 3



U.S. Government Sponsored Entity Securities are classified Level 2 of the fair value hierarchy, as the valuation uses a market-based model which considers yield, price of comparable securities, coupon rate, maturity, credit quality and dealer-provided prices. These prices are obtained from various pricing sources by our custodian bank. 

Local Agency Investment Funds is measured at fair value, however, the investment is not required to be leveled.


Money Market Mutual Funds are not subject to fair value hierarchy as the investments are reported at amortized cost.

B. Receivables

Notes Receivable

The City entered into a settlement agreement on June 19, 2021 for uncollected transient occupancy taxes in the amount of $472,888. The terms of the settlement require an initial payment of $50,000, which was paid in July 2021, and $10,000 per month beginning January 2021 until paid in full. The notes receivable balance at June 30, 2021 is $362,888.

Loans Receivable

The City granted loans to individuals for property rehabilitation. The terms of the loans do not require repayment until the sale of the related property and the stated interest rate is 5%. These loans are not forgivable. The loans receivable balance at June 30, 2021 is $161,905.

The City also provides certain forgivable loans for the development and rehabilitation of low- and moderate-income housing and loans for first-time home buyers. The terms of these loans do not require payment unless the related property is sold and are to be forgiven if certain conditions met. The City records the loan receivable balances and an offsetting allowance for uncollectible accounts in the same amount as these loans are considered to be uncollectible.

51 CITY OF ALHAMBRA
Notes to Basic Financial Statements
June 30, 2021

C. Capital Assets
Capital assets activity for the primary government for the year ended June 30, 2021 is as follows:

Balances at
Balances at
June 30, 2020
Additions
Deletions
June 30, 2021
Governmental activities:

Capital assets, not being depreciated:

Land
$
22,035,738
13,701
—
22,049,439
Construction in progress
3,133,362
556,246
(3,133,362)
556,246
Total capital assets, not
being depreciated
25,169,100
569,947
(3,133,362)
22,605,685
Capital assets, being depreciated:

Buildings, structures, and
improvements
90,000,114
301,707
—
90,301,821
Machinery and equipment
24,042,870
2,805,386
(923,107)
25,925,149
Infrastructure
107,051,045
3,847,550
(458,347)
110,440,248
Total capital assets,
being depreciated
221,094,029
6,954,643
(1,381,454)
226,667,218
Less accumulated depreciation for:

Buildings, structures, and
improvements
(34,842,463)
(1,774,887)
—
(36,617,350)
Machinery and equipment
(16,432,040)
(1,815,855)
923,108
(17,324,787)
Infrastructure
(50,251,849)
(1,902,329)
390,556
(51,763,622)
Total accumulated
depreciation
(101,526,352)
(5,493,071)
1,313,664
(105,705,759)
Total capital assets, being
depreciated, net
119,567,677
1,461,572
(67,790)
120,961,459
Governmental activities
$
144,736,777
2,031,519
(3,201,152)
143,567,144

52 CITY OF ALHAMBRA
Notes to Basic Financial Statements
June 30, 2021

Balances at
Balances at
June 30, 2020
Additions
Deletions
June 30, 2021
Business-type activities:

Capital assets, not being depreciated:

Land
$
5,769,073
—
—
5,769,073
Construction in progress
7,316,512
5,150,653
(5,494,347)
6,972,818
Total capital assets, not
being depreciated
13,085,585
5,150,653
(5,494,347)
12,741,891
Capital assets, being depreciated:

Buildings, structures, and
improvements
17,865,921
915,130
—
18,781,051
Utility systems
59,931,185
6,529,556
(261,603)
66,199,138
Machinery and equipment
5,477,199
330,304
(188,898)
5,618,605
Total capital assets,
being depreciated
83,274,305
7,774,990
(450,501)
90,598,794
Less accumulated depreciation for:

Buildings, structures, and
improvements
(7,722,831)
(360,886)
—
(8,083,717)
Utility systems
(10,791,997)
(715,946)
37,867
(11,470,076)
Machinery and equipment
(3,866,640)
(299,523)
188,900
(3,977,263)
Total accumulated
depreciation
(22,381,468)
(1,376,355)
226,767
(23,531,056)
Total capital assets, being
depreciated, net
60,892,837
6,398,635
(223,734)
67,067,738
Business-type activities
$
73,978,422
11,549,288
(5,718,081)
79,809,629

Capital assets for Internal Service Funds included within governmental activities in the above table for the year ended June 30, 2021 is as follows:

Balances at Balances at
June 30, 2020 Additions Deletions June 30, 2021
Internal Service Funds included in
governmental activities:

Land $ 237,950 — — 237,950
Structures and improvements — 43,162 — 43,162
Machinery and equipment 6,901,412 581,779 (220,915) 7,262,276 Less accumulated depreciation
for machinery and equipment (4,899,805) (467,664) 220,915 (5,146,554) Total $ 2,239,557 157,277 — 2,396,834

53 CITY OF ALHAMBRA
Notes to Basic Financial Statements
June 30, 2021

The following table summarizes the changes in capital assets for the year ended June 30, 2021 for the water system network:

Water System Network:

Balance as of
Balance as of
Capital Asset Type June 30, 2020 Additions Deletions June 30, 2021 Land $ 1,923,817 — — 1,923,817
Building
1,729,797
—
—
1,729,797
Structure and improvement
9,036,829
—
—
9,036,829
Water lines
21,254,413
—
—
21,254,413
Water reservoir and pump stations
7,678,209
—
—
7,678,209
Water wells
2,920,475
—
—
2,920,475
Machinery and equipment
1,287,201
47,335
—
1,334,536
Motor vehicle 1,604,950 172,242 (48,386) 1,728,806
Construction in progress
31,634
1,450,651
(47,335)
1,434,950
Less accumulated depreciation for
water system network
(12,231,673)
(735,383)
48,387
(12,918,669)
Totals –
net of accumulated
depreciation $ 35,235,652 934,845 (47,334) 36,123,163

The following table summarizes the changes in capital assets for the year ended June 30, 2021 for the storm drain and sewer system networks:

Storm Drain and Sewer System Network:

Balance as of Balance as of
Capital Asset Type
June 30, 2020
Additions
Deletions
June 30, 2021
Land $ 169,595 — — 169,595
Storm drain line
1,410,513
—
—
1,410,513
Storm drain pump station
47,440
—
—
47,440
Sewer lines
16,412,932
1,603,179
(153,406)
17,862,705
Sewer lift and pump stations
10,207,204
4,926,376
(108,196)
15,025,384
Machinery and equipment
825,813
23,194
(20,512)
828,495
Motor vehicle
989,767
39,703
—
1,029,470
Construction in progress
6,797,621
3,715,703
(4,975,456)
5,537,868
Less accumulated depreciation for
storm drain and sewer system
network
(4,366,790)
(455,061)
58,380
(4,763,471)
Totals –
net of accumulated
depreciation $ 32,494,095 9,853,094 (5,199,190) 37,147,999

54 CITY OF ALHAMBRA
Notes to Basic Financial Statements
June 30, 2021

The following table summarizes the changes in capital assets for the year ended June 30, 2021 for the Sanitation Fund:

Sanitation:

Balance as of
Balance as of
Capital Asset Type
June 30, 2020
Additions
Deletions
June 30, 2021
Machinery and equipment $ 14,921 14,921
Motor vehicles 597,844 29,227 (120,000) 507,071
Less accumulated depreciation for
sanitation
(505,134)
(16,806)
120,000
(401,940)
Totals –
net of accumulated
depreciation
$
107,631
12,421
—
120,052

The following table summarizes the changes in capital assets for the year ended June 30, 2021 for the Golf Course and Clubhouse Fund:

Golf course/Clubhouse:

Balance as of
Balance as of
Capital Asset Type
June 30, 2020
Additions
Deletions
June 30, 2021
Land $ 3,675,661 — — 3,675,661
Building – golf course
512,215
—
—
512,215
Clubhouse – golf course
5,557,319
—
—
5,557,319
Structure and improvements
1,029,760
915,129
—
1,944,889
Machinery and equipment
156,703
18,604
—
175,307
Construction in progress
487,257
350,700
(837,957)
—
Less accumulated depreciation for
golf course
(5,277,871)
(169,105)
—
(5,446,976)
Totals –
net of accumulated
depreciation
$
6,141,044
1,115,328
(837,957)
6,418,415
55 CITY OF ALHAMBRA
Notes to Basic Financial Statements
June 30, 2021

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

Governmental activities:

General government
$
247,928
Public safety
1,315,310
Public works
2,541,505
Housing, health and community development
Culture and recreation
920,664
Internal service fund assets allocated to various functions based on usage 467,664
Total depreciation expense – governmental activities
$
5,493,071
Business-type activities:

Water
$
735,383
Sewer and storm drain
455,061
Sanitation
16,806
Golf course/clubhouse
169,105
Total depreciation expense – business-type activities
$
1,376,355

The City has entered into contracts for the construction or renovation of the following projects:

Project
Expended
Remaining
authorization
to date
commitment
Building improvements $ 356,325 169,370 186,955
Property rehabilitation 84,530 34,530 50,000
Street improvements
3,467,319
479,640
2,987,679
Water pump station improvements
126,776
125,994
782
Sewer improvements
3,089,491
2,049,657
1,039,834
Sewer lift station replacements
3,090,518
2,808,801
281,717
$ 10,214,959 5,667,992 5,551,434

56 CITY OF ALHAMBRA
Notes to Basic Financial Statements
June 30, 2021

D. Interfund Accounts
Individual fund interfund receivables, payables, and transfers at June 30, 2021 are:

Due from
Due to
other funds
other funds
Transfers in
Transfers out
General Fund $ 7,311,998 — 300,161 1,443,248
Other Governmental Funds:

Special Revenue Funds:

Law Enforcement
—
28,978
—
—
Proposition C
—
—
—
3,139
Lighting and Landscape Maintenance
—
—
174,139
—
Police Facility Assessment
—
—
—
2,213,010
Commuunity Development Block Grant
—
53,453
—
132,093
HOME
—
14,439
—
1,193
Transportation Capital Improvement
—
—
3,139
—
Debt Service Funds:

Police Facility
—
—
2,123,170
—
Parking Authority
—
—
413,421
174,139
Capital Projects Fund:

Capital Outlay
—
—
949,610
—
Total other Governmental Funds — 96,870 3,663,479 2,523,574 Enterprise Funds:

Water
—
—
—
12,846
Sewer and Storm Drain
—
—
—
15,585
Golf Course/Clubhouse
—
1,543,996
—
71,359
Total Enterprise Funds — 1,543,996 — 99,790
Internal Service Funds:

Equipment
—
—
102,972
—
Self-Insurance
—
5,671,132
—
—
Total Internal Service Funds — 5,671,132 102,972 —
Total $ 7,311,998 7,311,998 4,066,612 4,066,612
The
outstanding
interfund
receivables
and
payable
balances
result
primarily
from
temporary
operating
cash
loans
and
from the time lag between the dates that (1) interfund goods and services are provided or reimbursable expenditures occur, (2) transactions are recorded in the accounting system, and (3) payments between funds are made.

Transfers were used to 1) move revenues from the fund with collection authorization to the debt service fund as a debt service principal and interest payments become due, 2) move unrestricted revenues to finance various programs accounted for in other funds including amounts provided as subsidies or matching funds for various grant programs, and 3) move unrestricted general fund balance to various funds with deficit balances

57 CITY OF ALHAMBRA
Notes to Basic Financial Statements
June 30, 2021

E. Long-Term Liabilities
Changes in long-term liabilities for the year ended June 30, 2021 were as follows:

Balances, Balances, Due within
June 30, 2020, Additions Retirem ents June 30, 2021 one year Governmental activities:

Other Debt:

Alham bra Capital Improvements
Corporation – certificates
of participation $ 7,335,000 — (1,685,000) 5,650,000 1,770,000 Alham bra Parking Authority -
lease revenue bonds 5,810,000 — (145,000) 5,665,000 150,000 Less bond discount (45,824) — 1,967 (43,857) —
Direct Debt:

Notes and loans payable 408,978 — (270,013) 138,965 138,965 Capital lease obligations (IV.F.) 2,826,018 — (780,855) 2,045,163 995,429 Other Long-Term Liabilities:

Compensated absences 3,164,292 3,033,325 (3,071,480) 3,126,137 694,040 Net Pension liability (V.E.) 12,931,153 2,666,424 (14,688) 15,582,889 — Net Pension liability (V.D.) 117,615,187 17,247,500 (13,181,095) 121,681,592 — Total OPEB liability (V.F.) 23,458,113 9,145,393 (579,724) 32,023,782 — Self-insurance liabilities 16,468,698 5,151,753 (3,074,138) 18,546,313 2,880,518 Subtotal governmental activities 189,971,615 37,244,395 (22,800,026) 204,415,984 6,628,952

58 CITY OF ALHAMBRA
Notes to Basic Financial Statements
June 30, 2021

Balances, Balances, Due within
June 30, 2020 Additions Retirem ents June 30, 2021 one year Business-type activities:

W ater:

Other Debt:

Revenue refunding bonds 4,330,000 — (780,000) 3,550,000 825,000 Add bond premium 525,060 — (112,513) 412,547 —
Other Long-Term Liabilities:

Compensated absences 385,604 — (21,654) 363,950 80,801 Net Pension liability (V.E.) 1,382,189 283,461 — 1,665,650 — Net Pension liability (V.D.) 9,562,186 1,402,232 (1,071,631) 9,892,787 — Total OPEB liability (V.F.) 2,489,607 924,664 (56,877) 3,357,394 — Sewer and storm drain:

Other Debt:

Revenue bonds 7,765,000 — (150,000) 7,615,000 160,000 Add bond premium 250,272 — (12,566) 237,706 —
Other Long-Term Liabilities:

Compensated absences 26,487 19,557 — 46,044 10,222 Net Pension liability (V.E.) 252,658 51,816 — 304,474 — Net Pension liability (V.D.) 1,472,269 215,899 (164,995) 1,523,173 — Total OPEB liability (V.F.) 347,444 129,045 (7,938) 468,551 — Sanitation:

Other Long-Term Liabilities:

Compensated absences 42,340 — (27,669) 14,671 3,257 Net Pension liability (V.E.) 297,245 60,959 — 358,204 — Net Pension liability (V.D.) 1,736,081 254,585 (194,562) 1,796,104 — Total OPEB liability (V.F.) 447,428 166,179 (10,222) 603,385 — Subtotal business-type activities 31,311,870 3,508,397 (2,610,627) 32,209,640 1,079,280 Total long-term liabilities
$
221,283,485
40,752,792
(25,410,653)
236,625,624
7,708,232

59 CITY OF ALHAMBRA
Notes to Basic Financial Statements
June 30, 2021

Long-term liabilities at June 30, 2021 consist of:
(1) Governmental Activities
Bond and Certificate Indebtedness


Certificates of Participation –
In 1992, the Alhambra Capital Improvements Corporation
issued $27,000,000 serial and term certificates of participation maturing in increasing amounts from $135,000 to $2,000,000, plus interest at 4.80% to 6.75% through September 1, 2023. Certificates maturing on or after September 1, 2001 are subject to redemption at the option of the Corporation at a price of 102% to 100% of principal value. Debt service on the certificates is provided from a lease payment made by the City using monies collected from a Citywide Public Facility Assessment District. In August 2006, the City reoffered the outstanding balance of $22,140,000 of the 1992 Certificates of Participation by the purchase of the outstanding certificates through redemption and the sale of the certificates and optional redemption rights to the underwriter resulting in a net gain of $3,149,832 (net of issuance costs of $1,000,168) to finance the acquisition and construction of certain public capital facilities. The interest rate on the reoffered Certificates remains unchanged. The reserve requirement is satisfied through a municipal bond debt service reserve fund insurance policy.

Pledged rental payments equaled debt service payment during fiscal year ended June 30, 2021. At June 30, 2021, $5,650,000 was outstanding.


Lease Revenue Bonds –
In October 2013 the Alhambra Parking Authority, a nonprofit entity of the City, issued $6,565,000 serial and term bonds, which mature in increasing amounts from $105,000 to $395,000, plus interest ranging from 2.0% to 5.0% through September 1, 2043. Bond proceeds are being used to fund the construction of a parking structure, fund reserve requirements, and pay costs of issuance. The bonds maturing on or after September 1, 2024 are subject to redemption at the option of the City at any time prior to the maturity date of the bonds without premium. The term bonds, maturing on September 1, 2033, September 1, 2038, and September 1, 2043 are subject to mandatory redemption. The City under a lease agreement shall make lease payments in amounts equal to the debt service on the bonds. The reserve requirement is satisfied through a municipal bond debt service reserve fund insurance policy. Pledged rental payments equaled debt service payment during fiscal year ended June 30, 2021. At June 30, 2021, $5,665,000 was outstanding.

Notes, Loans, and Other Long-Term Debt


Bank Notes Payable – In December 2006, the City entered into an agreement with Banc of America Public Capital Corporation to fund the purchase of a new and upgraded heating, ventilation and air conditioning system for city facilities. Quarterly payments of $70,496 at an interest rate of 3.88% are due through December 13, 2021. At June 30, 2021, $138,965 was outstanding.
(2) Business-type Activities


Water Revenue Refunding Bonds -
In November 2016, the City issued $7,225,000 Water
Revenue Refunding Bonds, Series 2016, which mature in amounts from $695,000 to $955,000, plus interest at 2.0% to 5.0% through March 1, 2025. Bond proceeds were used to refund the remaining outstanding amount of $8,980,000 on the $14,735,000 2006 Water System Revenue Certificates of Participation. The refunding resulted in an economic gain (difference between present value of the debt service payments on the old and new debt) of $826,437 and a reduction in total debt service payments of $2,248,476. The Bonds are subject to optional or mandatory redemption prior to their stated maturity dates. The bonds are 60 CITY OF ALHAMBRA
Notes to Basic Financial Statements
June 30, 2021

secured by pledged net revenues of the water enterprise fund. There is no reserve requirement for the bonds. At June 30, 2021, $3,550,000 was outstanding. 

Wastewater Revenue Bonds -
In September 2018, the Alhambra Facilities Financing
Authority, a nonprofit entity of the City, issued $8,005,000 serial and term bonds, which mature in increasing amounts from $95,000 to $425,000, plus interest ranging from 3.0% to

5.0% through June 1, 2048. Bond proceeds are being used to fund the acquisition and construction to improve the City’s wastewater system and pay costs of issuance. The bonds maturing on or after June 1, 2029 are subject to redemption at the option of the Authority any time prior to the maturity date of the bonds without premium. The term bonds, maturing on June 1, 2042, June 1, 2044, June 1, 2046, and June 1 2048 are subject to mandatory redemption. The bonds are secured by pledged net revenues of the sewer enterprise fund.

There is no reserve requirement for the bonds. At June 30, 2021, $7,615,000 was outstanding.

In the opinion of the City’s management, the City has complied with all debt covenants. (3) Compensated Absences
This represents all vested compensated absences of the City, which amounted to $3,126,137 at June 30, 2021 for governmental activities and $424,665 for business-type activities. Governmental compensated absences obligation is generally liquidated by the Compensated Absences Internal Service Fund.
(4) Self-Insurance Liability
Claims liability of $18,546,313 reported in the Self-Insurance Internal Service Fund at June 30, 2021 is based on requirements of GASB Statement 10, which requires that a liability for claims 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 the loss can be reasonably estimated. Changes in the Fund’s claims liability amount during the two fiscal years ended June 30, 2021 were:
2021
2020
Balance, July 1 $ 16,468,698 16,552,083
Claims and changes in estimates
5,151,753
3,072,379
Claim payments
(3,074,138)
(3,155,764)
Balance, June 30
$
18,546,313
16,468,698

61 CITY OF ALHAMBRA
Notes to Basic Financial Statements
June 30, 2021

(5) Future Minimum Debt Service Requirements
Annual debt service requirements to maturity are as follows:

Governmental Activities:

Certificates of Participation and
Lease Revenue Bonds
Notes and loans payable
Principal
Interest
Principal
Interest
Year ending June 30:
2022
1,920,000
584,255
138,965
2,025
2023
2,035,000
455,356
—
—
2024
2,160,000
321,694
—
—
2025
165,000
248,594
—
—
2026
930,000
1,139,681
2027-2031
1,160,000
910,200
—
—
2032-2036
1,475,000
596,250
—
—
2037-2041
1,470,000
188,250
—
—
11,315,000 4,444,280 138,965 2,025
Less bond discount
(43,857)
—
—
—
Total
$
11,271,143
4,444,280
138,965
2,025
Others* Total
Principal
Interest
Principal
Interest
Year ending June 30:
2022
1,305,815
101,377
3,364,780
687,657
2023
1,142,288
36,030
3,177,288
491,386
2024
528,217
7,646
2,688,217
329,340
2025
310,386
—
475,386
248,594
2026
310,386
—
1,240,386
1,139,681
2027-2031
310,384
—
1,470,384
910,200
2032-2036
—
—
1,475,000
596,250
2037-2041
—
—
1,470,000
188,250
3,907,476 145,053 15,361,441 4,591,358
Less bond discount
—
—
(43,857)
—
Total
$
3,907,476
145,053
15,317,584
4,591,358
* Others consist of capital leases and portion of self-insurance liabilities with debt service schedule.

Business-type Activities:

Revenue Bonds
Principal Interest
Year ending June 30:
2022
985,000
438,731
2023
1,030,000
388,481
2024
1,080,000
358,606
2025
1,140,000
304,606
2026
195,000
247,606
2027-2031
1,120,000
1,082,782
2032-2036
1,350,000
854,153
2037-2041
1,575,000
625,744
2042-2046
1,855,000
342,556
2047-2051
835,000
44,100
11,165,000 4,687,365
Add bond prem ium
650,253
—
Total $ 11,815,253 4,687,365

62 CITY OF ALHAMBRA
Notes to Basic Financial Statements
June 30, 2021

(6) Pledged Revenue
The Water Revenue Refunding Bonds and Wastewater Revenue Bonds outstanding are collateralized by the pledging of certain revenues. The amount and term of the remainder of this commitment is indicated in the debt service to maturity table presented in the accompanying notes. The purpose for which the proceeds of the debt issuance was utilized is disclosed in the debt description of the accompanying notes. For the current year, debt service payment as percentage of the pledged gross revenue (net of certain expenses where so required by the debt agreement) is indicated in the table below. This percentage approximates the relationship of the debt service of pledged revenues for the remainder of the term of the commitment. The City is required to maintain system net revenues during each fiscal year equal to at least 120% of the annual debt service in such fiscal year. During the current fiscal year this percentage was 288% for Water Revenue Refunding Bonds and 787% for Wastewater Revenue Bonds.

Description of
Pledged Rev
enue

Annual Amount of
Pledged Revenue
(n
et of expenses)

Annual Debt
Service
P
ayment

Pledged Revenue
as a Percentage of
Debt
Service

Water Revenues $2,871,178

$996,500 288%

Wastewater Revenues $3,455,892

$439,356 787%

F. Lease Obligations
The City has entered into capital lease obligations for machinery and equipment purchased under financing leases. The leases require monthly payments of principal and interest, with interest rates ranging from 2.8% to 11.8%. The gross amount of the assets acquired under capital leases is $3,707,418 and is classified as machinery and equipment within capital assets. The amortization of the leased assets included as part of depreciation expense and accumulated depreciation at June 30, 2021, is $1,161,910.

Future minimum lease payments under capital leases and the present value of the net minimum lease payments at June 30, 2021 are:

Governmental
activities
Year ending June 30:
2022
1,096,806
2023
867,932
2024
225,478
Total minimum lease payments 2,190,216
Less amount representing interest (145,053)
Present value of future minimum lease payments $ 2,045,163

63 CITY OF ALHAMBRA
Notes to Basic Financial Statements
June 30, 2021

The City is obligated under certain leases accounted for as operating leases. Operating leases do not give rise to property rights or lease obligations, and therefore, the results of the lease agreements are not reflected as capital assets. The following is a schedule by years of future minimum rental payments required under operating leases that have initial or remaining non-cancellable lease terms in excess of one year as of June 30:

Year ending June 30:
2022
22,934
2023
19,794
2024
4,759
2025
4,759
Total minimum payments required
$
52,246

During the fiscal year, total rental expenditures for all operating leases were $44,504.

V. Other Information
A. Litigation
In December 1995, the California Supreme Court upheld the constitutionality of Proposition 62, a 1986 initiative which required voter approval of all new or increased taxes. Since the City is a charter city, City management, based upon advice from counsel, believes the Court’s ruling will not invalidate certain taxes previously collected by the City and disallow these taxes from being collected in the future. However, the likelihood and amount of such an adverse effect upon the financial position of the City, if any, is currently unknown and has not been reflected in the basic financial statements.

The City is a defendant in general damage and personal injury lawsuits and claims arising in the normal course of operations. In the opinion of City management, outside counsel, and the City Attorney, the potential liability to the City for such lawsuits and claims should not have a material adverse effect upon the financial condition of the various funds and account groups of the City beyond that already accrued for.

B. Contingencies
No Commitment Debt
The City has issued the special obligations listed below that are payable solely out of revenues derived from the various projects financed by the bonds. Neither the faith and credit nor the taxing power of the City is pledged to the payment of the principal of or interest on any bond; nor is the City in any manner obligated to make any appropriation for payment therefore:


$31,390,000 Alhambra Revenue Bonds Series 2016 (Atherton Baptist Homes). The bonds were issued in October 2016 to refund the remaining amount of $28,230,000 on the Series 2010 A/B Bonds. $27,800,000 is outstanding at June 30, 2021.

C. Insurance Joint Powers Authority
The City is a member of the California Joint Powers Insurance Authority (CJPIA) a joint powers authority formed to enable individual cities to join together to obtain certain casualty and health insurance coverage’s as a group, to self-insure, where necessary, and to obtain adequate liability and 64 CITY OF ALHAMBRA
Notes to Basic Financial Statements
June 30, 2021

worker’s compensation coverages at an affordable cost. CJPIA has 118 member agencies at June 30, 2021 and each city appoints one member to the CJPIA Governing Board.

D. Public Employees’ Retirement System

Deferred
Deferred
Pension
Outflows
Inflows
Pension
Liability
of Resources
of Resources
Expense
CalPers - Miscellaneous
$
38,896,406
$
7,879,376
$
1,161,210
$
5,192,433
CalPers - Safety
95,997,250
12,930,896
222,075
12,256,265
Other Pension Benefit
17,911,217
4,239,680
1,268,784
1,302,498
$ 152,804,873 $ 25,049,952 $ 2,652,069 $ 18,751,196

(a) General Information about the Pension Plans:

Plan Description
All qualified permanent and probationary employees are eligible to participate in the City of Alhambra’s separate Safety (police and fire) and Miscellaneous (all other) Plans, agent multiple- employer defined benefit pension plans administered by the California Public Employees’ Retirement System (CalPERS), which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the Plans are established by State statute and City of Alhambra resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website at www.calpers.ca.gov.

Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 to 62 with statutorily reduced benefits. For employees hired into a plan with the 1.5% at 65 formula, eligibility for service retirement is age 55 with at least 5 years of services. PEPRA miscellaneous members become eligible for service retirement is age 55 with at least 5 years of services. PEPRA miscellaneous members become eligible for service retirement upon attainment of age 52 with at least 5 years of service. All members are eligible for non-duty disability benefits after 5 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. Safety members can receive a special death benefit if the member dies while actively employed and the death is job-related. Fire members may receive the alternate death benefit in lieu of the Basic Death Benefit or the 1957 Survivor Benefit if the member dies while actively employed and has at least 20 years of total CalPERS service. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.

65 CITY OF ALHAMBRA
Notes to Basic Financial Statements
June 30, 2021

The Plans’ provisions and benefits in effect at June 30, 2020 measurement date, are summarized as follows:

Miscellaneous
Hire date

Prior to
January 1
, 2013

On or after
J
anua
ry 1, 2013

Benefit formula 2.7% @ 55 2% at 62
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Retirement age 50 - 55 52 - 67
Monthly benefits, as a % of eligible compensation 2.0% to 2.7% 1.0% to 2.5% Required employee contribution rates 8% 6.25%
Required employer normal cost rates 11.434% 11.434%
Required employer payment of unfunded liability $3,979,839

Safety
Hire date

Prior to
January 1
, 2013

On or after
J
anua
ry

1, 2013

Benefit formula 3% @ 50 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Retirement age 50 50 – 57
Monthly benefits, as a % of eligible compensation 3.0% 2.0% to 2.7% Required employee contribution rates 9% 12.50%
Required employer normal cost rates 21.550% 21.550%
Required employer payment of unfunded liability $6,417,319

Employees Covered

At June 30, 2020 measurement date, the following employees were covered by the benefit terms for each Plan:

M
i
scellaneous

Sa
fety

Inactive employees or beneficiaries currently
rec
eiving bene
fits

3 82

2 98

Active employees

2 59

1 3
1 Inactive employees entitled to but not yet receiving
ben
efits

4 34

9 4

Total

1,
0 75

5 2
3 Contributions

Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. City contribution rates may change if plan contracts are amended. Payments made by 66 CITY OF ALHAMBRA
Notes to Basic Financial Statements
June 30, 2021

the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contributions requirements are classified as plan member contributions.

(b) Net Pension Liability
The City of Alhambra’s net pension liability for each Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of each of the Plans is measured as of June 30, 2020, using an annual actuarial valuation as of June 30, 2019 rolled forward to June 30, 2020 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below.

Actuarial Assumptions

The total pension liabilities in the June 30, 2019 actuarial valuations were determined using the following actuarial assumptions:

Misc
ellaneo
us

Safe
ty

Valuati
on Date

June 30, 20
20 June 30, 20
20 Measurement Date

June 30, 201
9 June 30, 201
9 Act
uarial C
ost Metho
d

Entr
y
-
Age Normal
Cost Met
hod

Actuarial Assum
p
t
i
o
ns:

Disco
unt Rate

7. 1
5%

7 .
1 5
%

Inflation

2. 50
%

2. 50
%

Pr
ojected Salary Increase

(1)

(1)

Mortality

Rate Table

(
2 )

(2)

P
ost Retirement Benefit Increase

(3)

(
3)

(1)

Varie
s b
y

en
try age

and

service.

(2)

The mortality rate table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvements using 90% of Scale MP-2016 published by the Society of A
ctuaries. The
CalPERS
Experience Study can be obtai
ned on the CalPERS website.

(3)

The lesser of contract COLA or 2.50% until Purchasing Power Protection Allowance floor on purch
asi
ng power applies, 2.
5 0% after.

Long-term Expected Rate of Return

The long-term expected rate of return on pension plan investments was determined using a building- block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund (PERF) cash flows.

Using historical returns of all funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as 67 CITY OF ALHAMBRA
Notes to Basic Financial Statements
June 30, 2021

the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.

The expected real rates of return by asset class area as follows:

A
ss
et Class

(
a
)

New Strategic
Allo
cation

Real Return
Years 1
-
10(
b
)

Real Return
Years 11+ (
c
)

Gl
obal Equity

50 .0
%

4 .
8 0
%

5. 9
8 %

Fixed
Income

28 .0%

1 .
0 0
%

2. 6
2 %

Inflat
ion Sensitive

0 .0%

0. 77
%

1 .
81 %

Private Equity

8 .0%

6. 3
0 %

7 .23
%

Re
al Estate

1 3
.0%

3 .
75 %

4.93 %

Liquidity

1 .0%

0. 0
%

-
0 .
9 2
%

Total

100%

(a) In the CalPERS ACFR, Fixed Income is included in Global Debt Securities; Liquidity is included in Short-term Investments; Inflation Assets are included in both Global E
quity

Se
curiti
e
s

an
d Global

Debt Securities.

(
b
) An expected inflation of 2.
0 % used for this pe
r
iod.

(
c
) An e
xpected inflation of

2.92 % u
sed for
this peri
od.

Discount Rate

The discount rate used to measure the total pension liability was 7.15%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

Subsequent Events

There were no subsequent events that would materially affect the results of this disclosure.

(c) Changes in the Net Pension Liability

The changes in the Net Pension Liability for each Plan using the measurement date of June 30, 2020, are as follows:

68 CITY OF ALHAMBRA
Notes to Basic Financial Statements
June 30, 2021

Miscellaneous Plan:

Total Pension Liability
Plan Fiduciary Net
Position
Net Pension
Liability/(Asset)
Balance at June 30, 2020
181,923,231
$ 143,037,460
38,885,771

Changes in the year:

Service Cost 2,902,872
-
2,902,872

Interest on the total pension liability 12,684,856
-
12,684,856

Difference between actual and expected (1,990,646)
-
(1,990,646)

Contribution - employer -
5,529,826
(5,529,826)

Contribution - employee -
1,242,185
(1,242,185)

Net Investment Income -
7,016,084
(7,016,084)

Benefit payments (7,946,919)
(7,946,919)
-

Administrative Expense -
(201,648)
201,648

Other miscellaneous income (expense) -
-
-

Current Year Net Changes
5,650,163
5,639,528
10,635

Balance at June 30, 2021
187,573,394
$

148,676,988

38,896,406

Safety Plan:

Total Pension Liability
Plan Fiduciary Net
Position
Net Pension
Liability/(Asset)
Balance at June 30, 2020
289,159,314
$

197,659,362

91,499,952

Changes in the year:

Service Cost 4,745,815
-
4,745,815

Interest on the total pension liability 20,290,311
-
20,290,311

Difference between actual and expected (327,825)
-
(327,825)

Contribution - employer -
9,082,459
(9,082,459)

Contribution - employee -
1,633,883
(1,633,883)

Net Investment Income -
9,773,312
(9,773,312)

Benefit payments (14,847,674)
(14,847,674)
-

Administrative Expense -
(278,651)
278,651

Current Year Net Changes
9,860,627

5,363,329

4,497,298

Balance at June 30, 2021
299,019,941
$

203,022,691

95,997,250

Increase (Decrease)
Increase (Decrease)

69 CITY OF ALHAMBRA
Notes to Basic Financial Statements
June 30, 2021

Sensitivity of the Net Pension Liability to Changes in the Discount Rate – The following presents
the net pension liability of the City of Alhambra for each Plan, calculated using the discount rate for each Plan, as well as what the City of Alhambra’s net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:

Miscellaneous

Safety

1% Decrease

6. 1
5 %

6. 1
5 %

Net Pe
nsion Liabilit
y

$

63 ,
826
,
199

$136,289,626

99,371,121

Current Discount Rate

7. 1
5 %

7. 1
5 %

N
et Pensi
on Li
abili
t
y

$

3 8
,
896
,
406

$

9 5
,
997
,
250

1% Increase

8. 1
5 %

8. 1
5 %

Net Pension Liability

$
1 8
,
299
,
075

$62,955,260
5 9
,
366
135,855

Pension Plan Fiduciary Net Position

Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

(d) Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions

Miscellaneous Plan:

For the year ended June 30, 2021, the City of Alhambra recognized pension expense of $5,192,433.

At June 30, 2021, the City of Alhambra reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred
Outflows of
Resource
s

Deferred Inflows
of R
e
sources

Pensio
n contri
butio
ns su
bse
quent

to measuremen
t dat
e

$

5 ,
957
,
100

$
—

Difference between actual and expected exp
e
rienc
e

512,095

1,1
61,210

Net difference between projected and actual earnings on plan inv
estment
s

1,410,181

—

Total $ 7,879,376

$ 1,161,210

$5,957,100 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June 30, 2021. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Year Ende
d

J
une

30 Amount

20 2
2 $
(80
1 ,296)

202
3 138,329

20 2
4 793,107

202
5 630,926

70 CITY OF ALHAMBRA
Notes to Basic Financial Statements
June 30, 2021

Safety Plan:

For the year ended June 30, 2021, the City of Alhambra recognized pension expense of $12,256,265. At June 30, 2021, the City of Alhambra reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred
Outflows of
Resources

Deferred Inflows
of Resources

Pens
ion contrib
utions sub
sequent to measur
e
ment date

$

9 ,
976
,
632

$

—

Difference between
a
ctual
and
expe
cted ex
pe
r
ien
ce

1,263,253

222,075

Net difference between projected and actual earnings on plan in
vestments

1,691,011

—

Total $ 12,930,896

$ 222,075

$9,976,632 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June 30, 2021. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Year Ended

June 30

Amount

20 2
2 $
3 97,559

202
3 464,081

2 0
2 4

1,031,623

20 2
5 838,926

(e) Payable to the Pension Plan

At June 30, 2021, the City of Alhambra reported a payable of $832,624 for the outstanding amount of contributions to the pension plan required for the year ended June 30, 2021.

E. Other Pension Benefits
(a) General Information about the Pension Plan:

Plan Description
The City provides post-retirement benefits to retirees provided they have the requisite full-time years of service with the City combined with all previous years of service in other public agencies.

The plan is a single employer defined benefit plan established by the City of Alhambra. Retirees will receive the benefit in effect at the time of retirement.

No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement 68.

Benefits Provided
Retirees with 20 years of service currently would receive a benefit of up to $400 a month and retirees with 25 years of service currently would receive a benefit of up to $450. No separate financial statements are available for this plan. Government Net Pension is generally liquidated by the Self-Insurance Internal Service Fund.
71 CITY OF ALHAMBRA
Notes to Basic Financial Statements
June 30, 2021

Employees Covered

At June 30, 2020 measurement date, the following employees were covered by the benefit terms for the Plan:

In
active
employ
ees currently

rece
i
ving benefits

1 41

Active emplo
yees

229

Total

3 70

Contributions

Currently, contributions are not required from plan members. The City is currently funding these pension obligations on a pay-as-you-go basis.

(b) Total Pension Liability
The City of Alhambra’s total pension liability for the Plan is measured as the total pension liability.

There are no fiduciary plan net assets. The total pension liability of the Plan is measured as of June 30, 2020, using an annual actuarial valuation as of June 30, 2019. Standard update procedures were used to roll forward the total pension liability to the measurement date. A summary of principal assumptions and methods used to determine the total pension liability is shown below.

Actuarial Assumptions

The total pension liabilities in the June 30, 2019 actuarial valuations were determined using the following actuarial assumptions:

Valuatio
n Date

June 30, 20
1 9

Measurement Date

June 3
0, 20
20 Act
uarial Assumptions:

Contrib
ut
ion Policy

Pay
-
as
-
y
o
u
-
go

Discount
Rate

2 .
21 %

Inflat
ion

2.7 5%

Pay
roll Grow
th

3.0%

F
i
xed Dolla
r Bene
f
it

Increase

None

Investment Rate o
f

R
eturn

N/A

Mortality

(1)

Mortality

Im
provement

(2)

(1)

CalPERS 1997-2015 Experience Study. The Experience Study report can be obtained at the CalPERS website under Forms and Publications.
(2)

Morality projected fully generational Scale MP-2020

Change of Assumptions

Changes of assumptions include a decrease in the discount rate from 3.50% to 2.21%.

72 CITY OF ALHAMBRA
Notes to Basic Financial Statements
June 30, 2021

Discount Rate

The discount rate used to measure the total pension liability was 2.21% for the Plan and was based on the Bond Buyer 20 Index.

(c) Changes in the Total Pension Liability

The changes in the Total Pension Liability for each Plan using the measurement date of June 30, 2020, are as follows:

Increase (Decrease)
Total Pension
Liability
Balance at June 30, 2020
14,863,245
$
Changes in the year:

Service Cost 293,207

Interest on the total pension liability 519,666

Changes of benefit terms (171)

Actual vs. expected experience 232,595

Change in assumptions 2,620,384

Benefit payments (617,709)

Current Year Net Changes
3,047,972

Balance at June 30, 2021
17,911,217
$

Sensitivity of the Total Pension Liability to Changes in the Discount Rate – The following
presents the total pension liability of the City of Alhambra for the Plan, calculated using the discount rate, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:

1% Decrease

1 .
21 %

Total

Pensio
n

Liability

$20,589,760

Curre
nt
D
iscount Rat
e

2 .
21 %

Total

Pen
si
on Liability

$
17 ,
911
,
217

1% Increase

3 .
21 %

Total

Pension Liability

$
1 5
,
726
,
335

Pension Plan Fiduciary Net Position

There is no fiduciary net position for the pension plan.

73 CITY OF ALHAMBRA
Notes to Basic Financial Statements
June 30, 2021

(d) Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions

For the year ended June 30, 2021, the City of Alhambra’s recognized pension expense of $841,546.

At June 30, 2021, the City of Alhambra reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Outflows
o
f Resources

Deferred Inflows
of R
esources

Pension contributions subsequen
t to me
a
surem
ent date

$

6 34
,
592

$

—

Differ
ence betw
een
ac
tual and
exp
e
cted ex
perience

194,465

104,239

Chang
es in assumpt
io
ns

3 ,
410
,
623

1,
164,545

Total $ 4,239,680

$ 1,268,784

$634,592 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June 30, 2021. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Ye
ar Ended

June 30

Amount

20 2
2 $
489
,
796

20 2
3 489
,
796

202
4 459
,
796

202
5 321,552

2 02
6 528,591

Thereafter

46,773

(e) Payable to the Pension Plan

At June 30, 2021, there was no outstanding amount of contribution payable to the pension plan for the year ended June 30, 2021.

F. Other Post-Employment Benefits (OPEB) other than Pensions

Deferred
Deferred
Total OPEB
Outflows
Inflows
Total OPEB
Liability
of Resources
of Resources
Expense
PERS Health Program
$
33,708,753
$
10,085,825
$
4,232,369
$
2,482,869
City Council Plan
2,744,359
1,028,977
133,346
392,368
$ 36,453,112 $ 11,114,802 $ 4,365,715 $ 2,875,237

Plan Description
In connection with the retirement benefits for employees described in Note V.D., the City provides post-retirement medical benefits to retirees through the California Public Employees’ Retirement System Health Benefits program (PERS Health Plan). The plan is a single employer defined benefit health care plan that provides healthcare insurance for eligible retirees. 74 CITY OF ALHAMBRA
Notes to Basic Financial Statements
June 30, 2021

The City also provides retired City Council persons health insurance coverage after 12 years of service on the City Council (City Council Plan). The plan is a single employer defined benefit plan.

No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement 75.

Benefits Provided
PERS Health Plan benefits are available to employees who retire with the City at age 50 or older with at least 5 years of service or those who satisfy certain disability requirements. The City contributes $133 toward the cost of medical coverage for the retiree until the retiree reached age 65 and become eligible for Medicare. After reaching age 65 and becoming eligible for Medicare, the retiree must join one of the Medicare Supplement coverage offers under the PERS Health program.

The PERS Health Program does not issue a publicly available financial report.

City Council Plan benefits are the same health coverage received by sitting City Council, but shall not be less than substantially the same health care received during the retiree’s tenure. The City directly pays or reimburses the actual cost of health insurance premiums for the retired City Council person.

Employees Covered

At June 30, 2020 measurement date, the following employees were covered by the benefit terms for each Plan:

PERS Health
P
lan

City Council
Plan

Inactive employees or beneficiaries currently
receiving benefits

1 4
3 7

Active employees

3 9
4 5

Inactive employees entitled to but not yet receiving
benefit
s

1 85

-

Total

722

12 Contributions

Currently, contributions are not required from plan members. The City is currently funding these OPEB liabilities on a pay-as-you-go basis. During the fiscal year ended June 30, 2021, the City paid $339,665 in insurance premiums, total implied subsidy was $440,000, and administrative expenses were $674, resulting in total contributions of $781,336.

(b) Total OPEB Liability
The City of Alhambra’s net postemployment benefit liability for the Plans is measured as the total OPEB liability. There are no fiduciary plan net assets. The total OPEB liability of the Plan is measured as of June 30, 2020, using an annual actuarial valuation as of June 30, 2020. A summary of principal assumptions and methods used to determine the total OPEB liability is shown below.

75 CITY OF ALHAMBRA
Notes to Basic Financial Statements
June 30, 2021

Actuarial Assumptions

The total OPEB liabilities in the June 30, 2020 actuarial valuations were determined using the following actuarial assumptions:

PERS Health
P
l
an

City
Coun
cil Plan

Val
u
a
tion Date

June 30, 20
20 June 30, 20
20 Measur
ement Date

June 30
,
20 20

June 30,

2 0
20 Actuarial Assumptio
ns:

Contribution Policy

Pay
-
as
-
y
ou
-
go

Pay
-
as
-
you
-
go

Discount Rate

2 .
21 %

2 .
21 %

Inflation

2.75%

2.75%

Pa
yroll Gro
wth

3.0%

3.0%

Projected increase 4.25% per year 4.25% per year
Medical trend 7.00% for non-medicare and

6.10% for medicare in 2022
decreasing to 4.00% in 2076

7.00% for non-medicare and

6.10% for medicare in 2022
decreasing to 4.00% in 2076
Participation

50% if eligible for
PEMHCA minimum only,
70% if eligible for fixed
dollar benefit

100% if eligible

Investment Rate of Retur
n

N/A

N/A

M
ortality
, Retiremen
t
, Di
sa
b
ility
,

(1)

(1)

Re
tirement

Mortality

Improvement

(2)

(2)

(1)

CalPERS 1997-2015 Experience Study. The Experience Study report can be obtained at the CalPERS website under Forms and Publications.
(2)

Morality projected fully generational with Scale MP-2018

Change of Assumptions

Changes of assumptions include a decrease in the discount rate from 3.50% to 2.21%.

Discount Rate

The discount rate used to measure the total OPEB liability was 2.21% for the Plans and were based on the Bond Buyer 20 Index.

(c) Changes in the Total OPEB Liability

The changes in the total OPEB
liability
for each Plan using the measurement date of June 30, 2020, are as follows:

76 CITY OF ALHAMBRA
Notes to Basic Financial Statements
June 30, 2021

PERS Health Plan City Council Plan
Increase (Decrease) Increase (Decrease)
Total OPEB Liability
Total OPEB
Liability
Balance at June 30, 2020
24,996,042
$ 1,746,550
$
Changes in the year:

Service Cost 987,195
116,529

Interest 899,428
63,746

Change in assumptions 9,595,951
462,634

Actual vs. expected experience (2,199,290)
438,445

Benefit payments (570,573)
(83,545)

Current Year Net Changes
8,712,711
997,809

Balance at June 30, 2021
33,708,753
$

2,744,359
$

Sensitivity of the Total OPEB Liability to Changes in the Discount Rate – The following presents
the total OPEB liability of the City of Alhambra for the Plan, calculated using the discount rate, as well as what the City’s total OPEB liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:

PERS Health
P
lan

City Council
Pl
an

1% Decrease

1 .
21 %

1 .
21 %

Total

OPEB
Liabilit
y

$

40 ,
227
,
325

$ 3,265,094

99,371,121

Current
Discount Rate

2 .
21 %

2 .
21 %

Total

OPEB
Liabilit
y

$

33 ,
708
,
753

$

2 ,
7 44
,
359

1% Increase

3 .
21 %

3 .
21 %

Total

OPEB
Liabilit
y

$
28 ,
612
,
414

$
2 ,
341
,
642

Sensitivity of the Total OPEB Liability to Changes in the Healthcare Trend Rate – The following
presents the total OPEB liability of the City of Alhambra for the Plan, calculated using the healthcare trend rate, as well as what the City’s total OPEB liability would be if it were calculated using a healthcare trend rate that is 1-percentage point lower or 1-percentage point higher than the current rate:

PERS Health
Plan

City Council
Plan

1% Decrease

Total

OPEB
Liabilit
y

$

2 8
,
137
,
539

$ 2,341,768

99,
371,121

Current Rate

Total

OPEB
Liabilit
y

$

33 ,
708
,
753

$

2 ,
744
,
359

1% Incr
ease

To
tal

O
PEB
Liabilit
y

$
40 ,
9 61
,
323

$
3 ,
256
,
733

77 CITY OF ALHAMBRA
Notes to Basic Financial Statements
June 30, 2021

Total OPEB Liability Plan Fiduciary Net Position

There is no fiduciary net position for the postemployment benefits other than pension plans.

(d) Total OPEB Liability Expenses and Deferred Outflows/Inflows of Resources Related to Total OPEB liability

PERS Health Program:

For the year ended June 30, 2021, the City of Alhambra’s recognized postemployment benefits other than pension expense of $2,482,869. At June 30, 2021, the City of Alhambra reported deferred outflows of resources and deferred inflows of resources related to total OPEB liability from the following sources:

Deferred Outflow of
Resources
Deferred Inflows of
Resources
Contributions subsequent to measurement date $ 688,817
$ -

Differences between actual and expected -
2,859,369

experience
Changes in assumptions 9,397,008
1,373,000

Total
$
10,085,825

$
4,232,369

$688,817 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the total OPEB liability in the year ending June 30, 2021. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to total OPEB liability will be recognized as total OPEB liability expense as follows:

Year En
d
e
d

June 30

Amount

20 2
2 $
595,760

20 2
3 595
,760

202
4 595,760

2 0
2 5

666,760

2 02
6 1,059,204

Thereafte
r

1,651,395

City Council Plan:

For the year ended June 30, 2021, the City of Alhambra’s recognized postemployment benefits other than pension expense of $392,368. At June 30, 2021, the City of Alhambra reported deferred outflows of resources and deferred inflows of resources related to total OPEB liability from the following sources:

Deferred Outflows
of R
e
s
ourc
es

Deferred Inflows
of Resources

C
o
ntributions
subsequent t
o measurement dat
e

$

91 ,
519

$

—

Diffe
re
nce between actual and expecte
d

experience

511
,
821

—

Changes in assumpti
ons

425
,
6 37

1 33
,
346

Total $ 1,028,977

$ 133,346

78 CITY OF ALHAMBRA
Notes to Basic Financial Statements
June 30, 2021

$91,519 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the total OPEB liability in the year ending June 30, 2021. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to total OPEB liability will be recognized as total OPEB liability expense as follows:

Year Ended

June 30

A
m
o
unt

20 2
2 $
211,9
3 6

2 0
2 3

211,936

20 2
4 201,519

202
5 178,721

(e) Payable to the Total OPEB Liability Plan

At June 30, 2021, there was no outstanding amount of contribution payable to the postemployment benefits other than pension plans for the year ended June 30, 2021.

G. Defined Contribution Plan
The City provides pension benefits for all of its part-time employees not covered by PERS through the Public Agency Retirement Systems (PARS). This is a defined contribution plan created in accordance with Internal Revenue Code Sections 401(a) and 501 and administered by Phase II Systems. In a defined contribution plan, benefits depend solely on amounts contributed to the plan plus investment earnings. The City Council has the authority to establish and amend the plan provisions.

Employees are eligible to participate from the date of employment. The plan agreement requires that both the employee and the City contribute an amount equal to 3.75% of the employee’s earnings. The City’s contributions for each employee are fully vested. Contribution requirements are established and may be amended by the City Council.

The City’s payroll for employees covered by the plan for the year ended June 30, 2021 was $1,150,816 and the City’s total payroll for the year was $41,845,330. Both the City and the covered employees made the required 3.75% contributions amounting to $43,158 from each source, or $86,316 in total.

H. Deferred Compensation Plans
The City offers its regular full-time employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457(b). The plan permits eligible employees to defer a portion of their salary until future years so as to shelter such funds from federal and state taxation until withdrawal, usually during their retirement years. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency.

All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts are held in a custodial account for the exclusive benefit of the employee participants and their beneficiaries. 79 CITY OF ALHAMBRA
Notes to Basic Financial Statements
June 30, 2021

While the City has full power and authority to administer and to adopt rules and regulations for the plan, all investment decisions under the plan are the responsibility of the plan participants. The City has no liability for losses under the plan, but does have the duty of due care that would be required of an ordinary prudent investor. Under certain circumstances, employees may modify their arrangements with the plan to provide for greater or lesser contributions or to terminate their participation. If participants retire under the plan or terminate service with the City, they may be eligible to receive payments under the plan in accordance with provisions thereof. In the event of serious financial emergency, the City may approve, upon request, withdrawals from the plan by the participants, along with their allocated contributions. As of June 30, 2021, deferred compensation assets are $36,598,456 and have been excluded from the City’s financial statements.

I. Joint Venture
The City is a participant with the County of Los Angeles, California State University at Los Angeles, City of Los Angeles, and the City of Monterey Park in a joint venture to operate the Cal State LA Metrolink Station. The Cal State LA Metrolink Station Authority (the Authority), a joint powers authority, was created to operate and maintain a Metrolink station located adjacent to the California State University at Los Angeles. On dissolution of the Authority, the net assets will be distributed based on each entity’s proportion of their respective contributions during the preceding 12 months. As of June 30, 2021, the respective contributions were as follows:

County of Los Angeles

25.0%
Cal State University at LA

17.5%
City of Alhambra

22.5%
City of Los Angeles

22.5%
City of Monterey Park

12.5%

Each entity is obligated to contribute annually the above percentages of the Authority’s budget. The City’s equity interest in the Authority is $44,305 at June 30, 2021. Complete financial statements for the Authority can be obtained from the City of Alhambra, 111 South First Street, Alhambra, California 91801.

J. Subsequent Events
Events occurring after June 30, 2021 have been evaluated for possible adjustments to the financial statements or disclosure as of February 22, 2022, which is the date these financial statements were available to be issued.

K. Successor Agency Disclosures

The assets and liabilities of the former Redevelopment Agency were transferred to the Successor Agency to the City of Alhambra Redevelopment Agency on February 1, 2012 as a result of the dissolution of the former Redevelopment Agency. The City is acting in a fiduciary capacity for the assets and liabilities. Disclosure related to the certain assets and long-term liabilities are as follows:

1. Cash and investments

Cash and investments as of June 30, 2021 consist of the following:

80 CITY OF ALHAMBRA
Notes to Basic Financial Statements
June 30, 2021

Deposits with financial institutions
$
6,188,628
Investments held by Bond Trustee 4,181,850
Total cash and investments $ 10,370,478

a.

Deposits

Custodial credit risk-deposits

In the case of deposits, this is the risk that in the event a bank failure, the government’s deposits may not be returned to it. The California Government Code requires California banks and savings and loan associations to secure a city’s deposits by pledging government securities as collateral. The fair value of pledged securities must equal at least 110% of a city’s deposits.

California law also allows financial institutions to secure city deposits by pledging first trust deed mortgage notes having a value of 150% of a city’s total deposits. At June 30, 2021, the carrying amount and bank balances of the Successor Agency’s restricted and unrestricted deposits (including cash and certificates of deposit) was $6,188,628 and was entirely covered by federal depository insurance or collateralized in accordance with state law.

b. Investments
The Successor Agency follows the investment policy of the City. The investment policy as approved by the City Council, authorizes the City to invest in certain types of investments as authorized by the California Government Code.

The table below identifies these
investment types
and the related maximum percentages by the
California Government Code (or the City’s investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City’s investment policy, where more restrictive) that address interest rate risk, credit risk
, and
concentration of credit risk
. This table does not address investments of debt proceeds held by bond trustee that are governed by the provision of debt agreements of the City, rather than the general provisions of the California Government Code or the City’s investment policy. 81 CITY OF ALHAMBRA
Notes to Basic Financial Statements
June 30, 2021

Authorized
Investment Type
Maximum
Maturity
Maximum
Percentage
Portfolio

Maximum
Investment
In One Issuer

U.S. Treasury Securities

5 years

Non
e

None

U.S. Govern
ment

Agency
Secu
rit
ies

5 yea
rs

7 0%

30%

Ba
nker
’s Accepta
nces

180 days

40%

5%

Com
mercial
pape
r

270 da
y
s

25%

5 %

Ne
gotiable C
ertificates of Deposit

5 ye
ar
s

30%

5%

R
epurchase Agreements

30 days

N
one

5%

Medium
-
Term Notes

5 years

30%

5%

R
eceivable
-
Backed Se
curi
t
ies

5 y
ears

20 %

5%

Mon
ey Market Mu
tu
al F
unds

N/A

2 0%

10%

Local Agency Inve
stment F
unds

(LAIF)

N
/A

None

$
7 5
million

Investments authorized under debt agreements
Investments authorized for funds held by bond trustee include, U.S. Treasury Obligations, U.S.

Government Sponsored Enterprise Securities, Certificates of Deposits, Commercial Paper, Local Agency Bonds, Bankers’ Acceptances, Money Market Mutual Funds, Repurchase Agreements, Investment Contracts and any other investments permitted by bond insurer and are legal investments under State laws. There were no limitations on the maximum amount that can be invested in one issuer or maximum percentage allowed, however the maximum maturity of an investment is five years, except for the maturity of Banker’s Acceptance and Certificates of Deposits which are limited to 30 days and Investment Contracts which are limited by agreement.

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. In accordance with its policy, the Successor Agency manages its exposure to declines in fair values by limiting the weighted average maturity of its investment portfolio as a whole to 24 months. Investments held by trustee are not subject to the 24 month maturity limitation.

Investm
e
n
t Type

Total

Remaining Maturity
12 month
s or less

Held by Bond

Tru
s
tee
:

M
oney
Market Funds

$

4 ,
181
,
85 0

$
4 ,
181
,
8 5
0 82

CITY OF ALHAMBRA
Notes to Basic Financial Statements
June 30, 2021

Credit Risk
Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. The Successor Agency mitigates this risk by restricting investment to those meeting the minimum rating required by (where applicable) the California Government Code, the City’s investment policy, or debt agreement. The table below presents the minimum and the actual rating by Standards and Poor as of year-end for each investment type:

Concentration of Credit Risk

The investment policy of the Agency contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. There are no investments in any one issuer (other than U.S. Treasury securities, mutual funds, and external investment pools) that represent 5% or more of the total Successor Agency investments.

Custodial Credit Risk – Investments
For an investment, this is the risk that, in the event or the failure of the counterparty, the government will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. To protect against fraud, embezzlement, or losses caused by collapse of individual securities dealers, all securities owned by the Successor Agency (except for investments held by bond trustee) are held in safekeeping by the Successor Agency’s custodial bank or a third party bank trust department, acting as agent for the Successor Agency under the terms of a custody agreement. Investments of $4,181,850 were purchased and held by the bond trustee.

Fair Value Measurements

The Successor Agency’s investment in money market mutual funds are not subject to fair value hierarchy.

c. Restricted Cash and Investments
Fiscal agents on behalf of the Successor Agency hold and invest funds in the Successor Agency’s name from long-term debt issuances, including construction, debt service, and reserve fund balances. Fiscal agents are mandated by bond indenture as to the types of investments in which debt proceeds can be invested.

Investment Type
Total

Minimum
Legal
Rating
Rating as of
Year End
AAA
Held b
y
B
ond
T
ru
stee:

Money
Mark
et Funds

$ 4,181,850
A

$
4 ,
181
,
8 5
0 83

CITY OF ALHAMBRA
Notes to Basic Financial Statements
June 30, 2021

2. Capital Assets
The capital assets of the Successor at June 30, 2021 were as follows:

Balances at
Balances at
June 30, 2020
Additions
Deletions
June 30, 2021
Capital assets, not being depreciated:

Land
$
248,791
—
(26,230)
222,561
Total capital assets, not
being depreciated
248,791
—
(26,230)
222,561
Capital assets, being depreciated:

Buildings, structures, and
improvements
527,438
—
—
527,438
Total capital assets, being depreciated
527,438
—
—
527,438
Less accumulated depreciation for:

Buildings, structures, and
improvements
(408,765)
(26,372)
—
(435,137)
Total accumulated depreciation
(408,765)
(26,372)
—
(435,137)
Total capital assets, being
depreciated, net
118,673
(26,372)
—
92,301
Total $ 367,464 (26,372) (26,230) 314,862

3 . Long-Term Liabilities
The long-term liabilities of the Successor at June 30, 2021 were as follows:

Balances,
Balances,
Due within
June 30, 2020
Additions
Retirem ents
June 30, 2021
one year
Tax allocation refunding bonds
$
7,335,000
—
(3,340,000)
3,995,000
3,995,000
A dd bond prem ium
368,532
—
(315,887)
52,645
—
Total long-term liabilites
$
7,703,532
—
(3,655,887)
4,047,645
3,995,000

Tax Allocation Bonds


In December 2013, the Successor Agency issued $25,180,000 tax allocation refunding bonds, which mature in amounts from $2,380,000 to $3,995,000, plus interest at 3.0% to 5.0% through September 1, 2021. Bond proceeds were used to refund the remaining outstanding amounts of $18,505,000 on the $38,070,000 Tax Allocation Refunding Bonds, Series 2003, $10,670,000 on the $15,445,000 Tax Allocation Bonds, Series 2005A, and $4,080,000 on the $7,215,000 Tax Allocation Bonds, Series 2005B. The refunding resulted in an economic gain (difference between present value of the debt service payments on the old and new debt) of $1,744,891 and a reduction in total debt service payments of $2,493,174. As of June 30, 2021 all refunded bonds have been redeemed.

The remaining outstanding Bonds are not subject to optional redemption at the option of the Successor Agency or mandatory sinking fund redemption. At June 30, 2021, $3,995,000 was outstanding.
84 CITY OF ALHAMBRA
Notes to Basic Financial Statements
June 30, 2021

The bonds were issued pursuant to a program developed by the County of Los Angeles to assist successor agencies to refund obligations pursuant to AB 1484 in order to provide debt service savings.

Annual debt service requirements to maturity for the tax allocation bonds are as follows:

P rin cip a l
In terest
T o ta l
Y ear en d in g Ju n e 3 0 :
2 02 2
3 ,99 5 ,0 00
2 83 ,2 5 0
4,2 7 8 ,25 0
A d d b on d prem ium
5 2 ,6 4 5
—
5 2 ,64 5
Total
$
4 ,04 7 ,6 45
2 83 ,2 5 0
4,3 3 0 ,89 5

4. Fremont Plaza Retail Project
In May 1996, the City and Agency entered into a Cooperation Agreement with respect to the Fremont Plaza Retail Project (the Project). The City and Successor shared in the net lease revenues from the Project based on their respective pro rata share. The cost of the project was $9,453,946.

Under terms of the Agreement, the City contributed the following:

Proceeds of HUD Section 108 note
$
3,000,000
Water Enterprise Fund contribution
900,000
Self-Insurance Internal Service
Fund contribution
900,000
Forgiveness of Agency note
656,295

The Project was sold on May 5, 2016 for $24,880,000. As indicated above, a contribution was made by the Department of Housing and Urban Development Section 108 note contributed to the Project and as a result $7,067,037 was paid to the Community Development Block Grant Fund for share of net proceeds. Remaining proceeds of $4,410,651 and other project revenues of $1,777,977 retained by the Successor Agency at June 30, 2021 totaling $6,188,628 will be returned to the County of Los Angeles.
85 Supplementary Information

Fiscal Year 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 Measurement Date 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 Total Pension Liability:

Service cost 2,793,150
$ 2,731,960
$ 2,608,320
$ 3,035,159
$ 2,903,692
$ 2,909,716
$ 2,902,872
$
Interest on total pension liability 10,386,163
10,712,916
10,977,205
11,262,583
11,605,493
12,297,939
12,684,856

Differences between expected and actual experience -
(3,570,385)
(4,430,098)
(3,089,581)
(2,626,202)
2,560,475
(1,990,646)

Changes in assumptions -
(2,687,738)
-
9,509,658
(647,771)
-
-

Changes in benefits -
-
-
-
860,120
118,749
-

Benefit payments, including refunds of employee contributions (5,371,308) (5,297,989)
(5,698,413)
(6,688,115)
(7,356,299)
(7,657,418)
(7,946,919)

Net Change in Total Pension Liability 7,808,005
1,888,764
3,457,014
14,029,704
4,739,033
10,229,461
5,650,163

Total Pension Liability - Beginning of Year 139,771,250 147,579,255
149,468,019
152,925,033
166,954,737
171,693,770
181,923,231

Total Pension Liability - End of Year (a) 147,579,255
$ 149,468,019
$ 152,925,033
$ 166,954,737
$ 171,693,770
$ 181,923,231
$ 187,573,394
$
Plan Fiduciary Net Position:

Contributions - employer 2,894,718
$ 3,043,790
$ 3,496,464
$ 3,641,443
$ 4,191,385
$ 4,855,162
$ 5,529,826
$
Contributions - employee 1,255,406
1,273,242
1,249,885
1,193,014
1,245,756
1,212,187
1,242,185

Net plan to plan resource movement -
-
-
-
(315)
-
-

Net investment income 17,266,996
2,571,518
651,034
13,033,190
10,651,580
8,836,046
7,016,084

Benefit payments (5,371,308)
(5,297,989)
(5,698,413)
(6,688,115)
(7,356,299)
(7,657,418)
(7,946,919)

Administrative expenses -
(132,627)
(71,365)
(172,338)
(199,043)
(96,973)
(201,648)

Other miscellaneous income (expense) -
-
-
-
(377,987)
315
-

Net Change in Plan Fiduciary Net Position 16,045,812
1,457,934
(372,395)
11,007,194
8,155,077
7,149,319
5,639,528

Plan Fiduciary Net Position - Beginning of Year 99,594,519 115,640,331
117,098,265
116,725,870
127,733,064
135,888,141
143,037,460

Plan Fiduciary Net Position - End of Year (b) 115,640,331 $ 117,098,265
$ 116,725,870
$ 127,733,064
$ 135,888,141
$ 143,037,460
$ 148,676,988
$
Net Pension Liability - Ending (a)-(b) 31,938,924
$ 32,369,754
$ 36,199,163
$ 39,221,673
$ 35,805,629
$ 38,885,771
$ 38,896,406
$
Plan fiduciary net position as a percentage of the
total pension liability 78.36% 78.34% 76.33% 76.51% 79.15% 78.63% 79.26% Covered payroll 15,778,729
$ 16,090,230
$ 15,579,501
$ 16,204,797
$ 15,158,135
$ 15,845,539
$ 15,767,910
$
Net pension liability as percentage of
covered payroll 202.42% 201.18% 232.35% 242.04% 236.21% 245.41% 246.68% Notes to Schedule:
* - Fiscal year 2015 was the 1st year of implementation, therefore only seven years are shown.

Benefit changes do not include any liabiltiy that may have resulted from plan changeswhich occurred after the June 30, 2018 valuation date.

This applies for voluntary benefit changes as well as any offers of two years additional service credit (a.k.a. Golden Handshake).

CITY OF ALHAMBRA
Change in benefits for fiscal year 2019 included the City contracting for optional benefit where accumulated unused sick leave at retirement can be converted to service credit.

Change in Assumptions for fiscal year 2018, the discount rate was changed from 7.65 percent (net of administrative expense) to 7.15 percent without reduction of administrative expense. For fiscal year 2017 there were no changes. For fiscal year 2016, the discount rate was changed from 7.5 percent (net of administrative expense) to 7.65 percent without reduction of administrative expense. For fiscal year 2015 amounts reported were based on the 7.5 percent discount rate.

Schedule of Changes in Net Pension Liability and Related Ratios - Miscellaneous Plan Last Ten Fiscal Years*
June 30, 2021
Required Supplementary Information (Unaudited)
86 Fiscal Year 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 Actuarially determined contribution 2,894,718
$ 3,043,790
$ 3,496,464
$ 4,191,385
$ 4,855,163
$ 5,529,302
$ 5,957,100
$
Contributions in relation to the actuarially determined contributions (2,894,718) (3,043,790)
(3,496,464)
(4,191,385)
(4,855,163)
(5,529,302)
(5,957,100)

Contribution deficiency (excess)
-
$

-
$

-
$

-
$

-
$

-
$

-
$

Covered payroll 16,090,230
$ 15,579,501
$ 16,204,797
$ 15,158,135
$ 15,845,539
$ 15,767,910
$ 16,366,122
$
Contributions as a percentage of covered payroll 17.99% 19.54% 21.58% 27.65% 30.64% 35.07% 36.40% Notes to Schedule:

Valuation Date 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 Fiscal Year 2015
Methods and Assumptions Used to Determine Contribution Rates:

Single and agent employers
Entry age
Amortization method
Level percentage of payroll, closed
Remaining amortization period
15 years
Asset valuation method
15-year smoothed market
Inflation

2.75%
Salary increases
Varies by entry age and service
Retirement age
period from 1997 to 2007
Mortality
period from 1997 to 2007. Pre-retirement and Post-retirement mortality rates include 5 years of projected mortality improvement using the Scale AA published by the Society of Actuaries Fiscal Years 2016 thru 2021
Methods and Assumptions Used to Determine Contribution Rates:

Single and agent employers
Entry age
Amortization method
Level percentage of payroll, closed
Asset valuation method
Market value
Inflation

2.75%
Salary increases
Varies by entry age and service
Retirement age
period from 1997 to 2007
Mortality
period from 1997 to 2007. Pre-retirement and Post-retirement mortality rates include 5 years of projected mortality improvement using the Scale AA published by the Society of Actuaries * - Fiscal year 2015 was the 1st year of implementation, therefore only seven years are shown.

CITY OF ALHAMBRA
Required Supplementary Information (Unaudited)
June 30, 2021
Schedule of Contributions - Miscellaneous Plan
Last Ten Fiscal Years*
The probabilities of Retirement based on the 2010 CalPERS The probabilities of mortality are based on the 2010 CalPERS The probabilities of Retirement based on the 2010 CalPERS The probabilities of mortality are based on the 2010 CalPERS 87 Fiscal Year 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 Measurement Date 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 Total Pension Liability:

Service cost 4,268,154
$ 4,055,533
$ 4,222,598
$ 4,482,059
$ 4,574,740
$ 4,548,708
$ 4,745,815
$
Interest on total pension liability 16,567,344
17,120,226
17,618,919
17,937,667
18,588,276
19,605,942
20,290,311

Differences between expected and actual experience -
(3,363,167)
-
(5,540,772)
(317,301)
4,421,389
(327,825)

Changes in assumptions -
(4,269,785)
(4,148,943)
15,154,564
(1,540,934)
-
-

Changes in benefits -
-
-
-
538,740
-
-

Benefit payments, including refunds of employee contributions (9,982,487) (10,418,211)
(10,764,823)
(11,277,617)
(12,816,674)
(13,859,925)
(14,847,674)

Net Change in Total Pension Liability
10,853,011

3,124,596

6,927,751

20,755,901

9,026,847

14,716,114

9,860,627

Total Pension Liability - Beginning of Year 223,755,094 234,608,105
237,732,701
244,660,452
265,416,353
274,443,200
289,159,314

Total Pension Liability - End of Year (a) 234,608,105
$ 237,732,701
$ 244,660,452
$ 265,416,353
$ 274,443,200
$ 289,159,314
$ 299,019,941
$
Plan Fiduciary Net Position:

Contributions - employer 5,194,226
$ 5,623,821
$ 6,223,922
$ 6,588,203
$ 7,327,405
$ 8,156,657
$ 9,082,459
$
Contributions - employee 1,357,296
1,364,518
1,467,365
1,394,896
1,411,113
1,458,166
1,633,883

Net plan to plan resource movement -
-
-
-
(440)
-
-

Net investment income 25,131,070
3,645,321
846,905
18,294,514
15,014,998
12,380,116
9,773,312

Benefit payments (9,982,487)
(10,418,211)
(10,764,823)
(11,277,617)
(12,816,674)
(13,859,925)
(14,847,674)

Administrative expenses -
(188,049)
(101,842)
(243,282)
(279,763)
(135,345)
(278,651)

Other miscellaneous income (expense) -
-
-
-
(531,275)
440
-

Net Change in Plan Fiduciary Net Position
21,700,105

27,400

(2,328,473)

14,756,714

10,125,364

8,000,109

5,363,329

Plan Fiduciary Net Position - Beginning of Year 145,378,143 167,078,248
167,105,648
164,777,175
179,533,889
189,659,253
197,659,362

Plan Fiduciary Net Position - End of Year (b) 167,078,248 $ 167,105,648
$ 164,777,175
$ 179,533,889
$ 189,659,253
$ 197,659,362
$ 203,022,691
$
Net Pension Liability - Ending (a)-(b) 67,529,857
$ 70,627,053
$ 79,883,277
$ 85,882,464
$ 84,783,947
$ 91,499,952
$ 95,997,250
$
Plan fiduciary net position as a percentage of the
total pension liability 71.22% 70.29% 67.35% 67.64% 69.11% 68.36% 67.90% Covered payroll 15,169,188
$ 14,967,276
$ 15,613,233
$ 14,960,642
$ 15,283,776
$ 15,196,807
$ 15,829,936
$
Net pension liability as percentage of
covered payroll 445.18% 471.88% 511.64% 574.06% 554.73% 602.10% 606.43% Notes to Schedule:
* - Fiscal year 2015 was the 1st year of implementation, therefore only seven years are shown.

Benefit changes do not include any liabiltiy that may have resulted from plan changeswhich occurred after the June 30, 2018 valuation date.

This applies for voluntary benefit changes as well as any offers of two years additional service credit (a.k.a. Golden Handshake).

Schedule of Changes in Net Pension Liability and Related Ratios - Safety Plan Last Ten Fiscal Years*
Change in benefits for fiscal year 2019 included the City contracting for optional benefit where accumulated unused sick leave at retirement can be converted to service credit.

Change in Assumptions for fiscal year 2018, the discount rate was changed from 7.65 percent (net of administrative expense) to 7.15 percent without reduction of administrative expense. For fiscal year 2017 there were no changes. For fiscal year 2016, the discount rate was changed from 7.5 percent (net of administrative expense) to 7.65 percent without reduction of administrative expense. For fiscal year 2015 amounts reported were based on the 7.5 percent discount rate.

CITY OF ALHAMBRA
Required Supplementary Information (Unaudited)
June 30, 2021
88 Fiscal Year
6/30/2015
6/30/2016
6/30/2017
6/30/2018
6/30/2019
6/30/2020
6/30/2021
Actuarially determined contribution 5,194,226
$ 5,623,821
$ 6,223,922
$ 7,326,640
$ 8,156,657
$ 9,081,818
$ 9,976,632
$
Contributions in relation to the actuarially determined contributions (5,194,226) (5,623,821)
(6,223,922)
(7,326,640)
(8,156,657)
(9,081,818)
(9,976,632)

Contribution deficiency (excess)
-
$

-
$

-
$

-
$

-
$

-
$

-
$

Covered payroll 14,967,276
$ 15,613,233
$ 14,960,642
$ 15,283,776
$ 15,196,807
$ 15,829,936
$ 16,744,741
$
Contributions as a percentage of covered payroll 34.70% 36.02% 41.60% 47.94% 53.67% 57.37% 59.58% Notes to Schedule:

Valuation Date 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 Fiscal Year 2015
Methods and Assumptions Used to Determine Contribution Rates:

Single and agent employers
Entry age
Amortization method
Level percentage of payroll, closed
Remaining amortization period
15 years
Asset valuation method
15-year smoothed market
Inflation

2.75%
Salary increases
Varies by entry age and service
Retirement age
period from 1997 to 2007
Mortality
period from 1997 to 2007. Pre-retirement and Post-retirement mortality rates include 5 years of projected mortality improvement using the Scale AA published by the Society of Actuaries Fiscal Years 2016 thru 2021
Methods and Assumptions Used to Determine Contribution Rates:

Single and agent employers
Entry age
Amortization method
Level percentage of payroll, closed
Asset valuation method
Market value
Inflation

2.75%
Salary increases
Varies by entry age and service
Retirement age
period from 1997 to 2007
Mortality
period from 1997 to 2007. Pre-retirement and Post-retirement mortality rates include 5 years of projected mortality improvement using the Scale AA published by the Society of Actuaries * - Fiscal year 2015 was the 1st year of implementation, therefore only seven years are shown.

CITY OF ALHAMBRA
Required Supplementary Information (Unaudited)
June 30, 2021
Schedule of Contributions - Safety Plan
Last Ten Fiscal Years*
The probabilities of mortality are based on the 2010 CalPERS The probabilities of Retirement based on the 2010 CalPERS The probabilities of Retirement based on the 2010 CalPERS The probabilities of mortality are based on the 2010 CalPERS 89 Fiscal Year 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 Measurement Date 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 Total Pension Liability:

Service cost
387,000
$

517,000
$

436,284
$

279,626
$

293,207
$

Interest on total pension liability
544,000

484,000

563,678

539,825

519,666

Differences between expected and actual experience
-

-

(191,107)

-

232,595

Changes in assumptions
2,059,000

(1,647,000)

(662,832)

669,770

2,620,384

Changes in benefits
-

-

(1,222,192)

-

(171)

Benefit payments
(415,000)

(472,000)

(536,182)

(590,625)

(617,709)

Net Change in Total Pension Liability 2,575,000
(1,118,000)
(1,612,351)
898,596
3,047,972

Total Pension Liability - Beginning of Year 14,120,000
16,695,000
15,577,000
13,964,649
14,863,245

Total Pension Liability - End of Year 16,695,000
$ 15,577,000
$ 13,964,649
$ 14,863,245
$ 17,911,217
$
Covered payroll 33,034,000
$ 32,753,000
$ 25,345,009
$ 24,063,431
$ 22,853,099
$
Net pension liability as percentage of
covered payroll 50.54% 47.56% 55.10% 61.77% 78.38%
Notes to Schedule:
* - Fiscal year 2017 was the 1st year of implementation, therefore only five years are shown.

No assets are accumulated in a trust that meets the criteria of paragraph 4 of Statement No. 73 of the Government Accounting Standards Board.

CITY OF ALHAMBRA
Required Supplementary Information (Unaudited)
June 30, 2021
Schedule of Changes in Total Pension Liability and Related Ratios - Other Pension Plan Last Ten Fiscal Years*
Changes in benefit terms: Fiscal year 2021 excluded benefit for certain non-safety management. Fiscal year 2019 excluded benefit for current police safety employees.

Changes in assumptions: Fiscal year 2021 included a decrease in the discount rate from 3.50% to 2.21% and the mortality scale updated to MP-2020. Fiscal year 2020 included a decrease in the discount rate from 3.87% to 3.50%. Fiscal year 2019 included an increase in the discount rate from 3.58% to 3.87%, demographic assumptions updated to CalPERS 1997-2015 Experience Study, and mortality improvement scale updated to Scale MP-2018. Fiscal year 2018 included an increase in the discount rate from 2.85% to 3.58%. Fiscal year 2017 included a decrease in the discount rate from 4% to 2.85%, decrease in inflationfrom 3% to 2.75%, decrease in payroll growth from

3.25% to 3%, and a decrease in benefit increases from 3% to no increase. 90 Fiscal Year
6/30/2017
6/30/2018
6/30/2019
6/30/2020
6/30/2021
Actuarially determined contribution
472,000
$

533,000
$

590,625
$

617,709
$

634,592
$

Contributions in relation to the actuarially determined contributions (472,000)

(533,000)

(590,625)

(617,709)

(634,592)

Contribution deficiency (excess)
-
$

-
$

-
$

-
$

-
$

Covered payroll 32,753,000
$ 25,345,009
$ 24,063,431
$ 22,853,099
$ 23,883,292
$
Contributions as a percentage of covered payroll 1.44% 2.10% 2.45% 2.70% 2.66% Notes to Schedule:

Valuation Date 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 Methods and Assumptions Used in Calculating Total Pension Liability:

Fiscal Year 2017
Contribution policy
Pay-as-you-go
Discount rate

2.85%
Inflation

2.75%
Mortality
Investment rate of return
N/A
Salary increases
3%
Benefit increase
No increase
Participation
100%
Fiscal Year 2018
Contribution policy
Pay-as-you-go
Discount rate

3.58%
Inflation

2.75%
Mortality
Investment rate of return
N/A
Salary increases
3%
Benefit increase
No increase
Participation
100%
Fiscal Year 2019
Contribution policy
Pay-as-you-go
Discount rate

3.87%
Inflation

2.75%
Mortality
Investment rate of return
N/A
Salary increases
3%
Benefit increase
No increase
Participation
100%
Fiscal Year 2020
Contribution policy
Pay-as-you-go
Discount rate

3.50%
Inflation

2.75%
Mortality
Investment rate of return
N/A
Salary increases
3%
Benefit increase
No increase
Participation
100%
Fiscal Year 2021
Contribution policy
Pay-as-you-go
Discount rate

2.21%
Inflation

2.75%
Mortality
Investment rate of return
N/A
Salary increases
3%
Benefit increase
No increase
Participation
100%
CalPers 1997-2011 Experience Study. Mortality Improvement Scale * - Fiscal year 2017 was the 1st year of implementation, therefore only five years are shown.

CalPers 1997-2011 Experience Study. Mortality Improvement Scale CalPers 1997-2015 Experience Study. Mortality Improvement Scale CalPers 1997-2015 Experience Study. Mortality Improvement Scale Last Ten Fiscal Years*
CalPers 1997-2015 Experience Study. Mortality Improvement Scale

CITY OF ALHAMBRA
Required Supplementary Information (Unaudited)
June 30, 2021
Schedule of Contributions - Other Pension Plan
91 Fiscal Year 6/30/2018 6/30/2019 6/30/2020 6/30/2021
Measurement Date 6/30/2017 6/30/2018 6/30/2019 6/30/2020 Total OPEB Liability:

Service cost
1,316,000
$

1,114,494
$

866,642
$

987,195
$

Interest on total OPEB liability
704,000

833,370

888,461

899,428

Differences between expected and actual experience
-

(1,582,432)

-

(2,199,290)

Changes in assumptions
(2,817,000)

45,732

1,413,060

9,595,951

Benefit payments
(374,000)

(442,000)

(526,285)

(570,573)

Net Change in Total OPEB Liability
(1,171,000)

(30,836)

2,641,878

8,712,711

Total OPEB Liability - Beginning of Year
23,556,000

22,385,000

22,354,164

24,996,042

Total OPEB Liability - End of Year 22,385,000
$ 22,354,164
$ 24,996,042
$ 33,708,753
$
Covered employee payroll 31,193,000
$ 25,659,109
$ 35,258,606
$ 36,642,436
$
Total OPEB liability as percentage of
covered employee payroll 71.76% 87.12% 70.89% 91.99%
Notes to Schedule:

CITY OF ALHAMBRA
Required Supplementary Information (Unaudited)
June 30, 2021
Schedule of Changes in Total OPEB Liability and Related Ratios -PERS Health Plan Last Ten Fiscal Years*
Changes in assumptions: Fiscal year 2021 included a decrease in the discount rate from 3.50% to 2.21% and the mortality scale updated to MP-2020. Fiscal year 2020 included a decrease in the discount rate from 3.87% to 3.50%. Fiscal year 2019 included an increase in the discount rate from 3.58% to 3.87%, demographic assumptions updated to CalPERS 1997-2015 Experience Study, mortality improvement scale updated to Scale MP-2018, and medicare eligible rate assumptions changed for employees hired before April 1, 1986.

Fiscal year 2018 included an increase in the discount rate from 2.85% to 3.58%. * - Fiscal year 2018 is the 1st year of implementation, therefore only four years are shown. 92 Fiscal Year 6/30/2018 6/30/2019 6/30/2020 6/30/2021
Measurement Date 6/30/2017 6/30/2018 6/30/2019 6/30/2020 Total OPEB Liability:

Service cost
117,000
$

103,277
$

104,366
$

116,529
$

Interest on total OPEB liability
39,000

47,749

63,008

63,746

Differences between expected and actual experience
-

340,027

-

438,445

Changes in assumptions
(138,000)

(142,172)

85,546

462,634

Benefit payments
(22,000)

(51,000)

(60,251)

(83,545)

Net Change in Total OPEB Liability (4,000)
297,881
192,669
997,809

Total OPEB Liability - Beginning of Year 1,260,000
1,256,000
1,553,881
1,746,550

Total OPEB Liability - End of Year 1,256,000
$ 1,553,881
$ 1,746,550
$ 2,744,359
$
Covered employee payroll
57,000
$

56,444
$

55,332
$

55,932
$

Total OPEB liability as percentage of
covered employee payroll 2203.51% 2752.96% 3156.49% 4906.60% Notes to Schedule:

CITY OF ALHAMBRA
Required Supplementary Information (Unaudited)
June 30, 2021
Schedule of Changes in Total OPEB Liability and Related Ratios - City Council Plan Last Ten Fiscal Years*
* - Fiscal year 2018 is the 1st year of implementation, therefore only four years are shown.

Changes in assumptions: Fiscal year 2021 included a decrease in the discount rate from 3.50% to 2.21% and the mortality scale updated to MP-2020. Fiscal year 2020 included a decrease in the discount rate from 3.87% to 3.50%.

Fiscal year 2019 included an increase in the discount rate from 3.58% to 3.87%, demographic assumptions updated to CalPERS 1997-2015 Experience Study, mortality improvement scale updated to Scale MP-2018, and medicare eligible rate assumptions changed for employees hired before April 1, 1986. Fiscal year 2018 included an increase in the discount rate from 2.85% to 3.58%.
93 CITY OF ALHAMBRA

Combining and Individual Fund Statements and Schedules

Year ended June 30, 2021

CITY OF ALHAMBRA
Combining Balance Sheet
Other Governmental Funds
June 30, 2021
Total
Total
Total
Total
special
debt
capital
other
revenue
service
projects
governmental
Assets
funds
funds
funds
funds
Cash and investments
$
28,874,552
—
492,673
29,367,225
Restricted cash and investments
14,418
239
—
14,657
Accounts receivable
961,964
—
—
961,964
Prepaid items
35,000
—
—
35,000
Loans receivable
161,905
—
—
161,905
Total assets
$
30,047,839
239
492,673
30,540,751
Liabilities, Deferred Inflows of Resources, and Fund Balances Liabilities:

Accounts payable
$
1,230,730
—
7,284
1,238,014
Due to other funds
96,870
—
—
96,870
Retentions payable
65,763
—
—
65,763
Total liabilities
1,393,363
—
7,284
1,400,647
Deferred inflows of resources:

Unavailable revenues
375,299
—
—
375,299
Fund balances:

Nonspendable:

Prepaid items
35,000
—
—
35,000
Restricted for:

Law enforcement
499,856
—
—
499,856
Streets and transportion
26,361,726
—
—
26,361,726
Air quality
280,402
—
—
280,402
Community development
108,240
—
—
108,240
Police facility
162,669
—
—
162,669
Water quality
856,278
—
—
856,278
Debt service
—
239
—
239
Assigned to various capital improvements
—
—
485,389
485,389
Unassigned
(24,994)
—
—
(24,994)
Total fund balances
28,279,177
239
485,389
28,764,805
Total liabilities, deferred
inflows of resources
and fund balances
$
30,047,839
239
492,673
30,540,751
94 CITY OF ALHAMBRA
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Other Governmental Funds
Year ended June 30, 2021
Total
Total
Total
Total
special
debt
capital
other
revenue
service
projects
governmental
funds
funds
funds
funds
Revenues:

Taxes and special assessments
$
6,505,493
—
—
6,505,493
Intergovernmental
13,516,419
—
—
13,516,419
Investment earnings
12,032
9 —
12,041
Charges for services
24,412
—
—
24,412
Other
561,006
—
300
561,306
Total revenues
20,619,362
9 300
20,619,671
Expenditures:

Current:

Public safety
1,033,014
—
—
1,033,014
Public works
4,016,615
—
—
4,016,615
Housing, health, and community
development
3,919,197
—
—
3,919,197
Culture and recreation
4,803
—
—
4,803
Capital outlay
3,761,436
—
548,113
4,309,549
Debt service:

Principal retirement
—
1,830,000
765,480
2,595,480
Interest and fiscal charges
—
706,763
60,602
767,365
Total expenditures
12,735,065
2,536,763
1,374,195
16,646,023
Excess (deficiency) of revenues
over expenditures
7,884,297
(2,536,754)
(1,373,895)
3,973,648
Other financing sources (uses):

Transfers in
177,278
2,536,591
949,610
3,663,479
Transfers out
(2,349,435)
(174,139)
—
(2,523,574)
Sale of capital assets
6,208
—
—
6,208
Total other financing sources
(uses)
(2,165,949)
2,362,452
949,610
1,146,113
Net change in fund balances
5,718,348
(174,302)
(424,285)
5,119,761
Fund balances at July 1
22,560,829
174,541
909,674
23,645,044
Fund balances at June 30
$
28,279,177
239
485,389
28,764,805
95 OTHER SPECIAL REVENUE FUNDS

Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than Capital Projects Funds and Expendable Trust Funds) that are legally restricted to expenditures for specified purposes. Funds included are:

Law Enforcement Fund – To account for funds provided by the United States Department of Justice and State of California for local law enforcement programs.

TDA Bikeway Fund – To account for revenues received from the State under the Transporta tion Development Act. Their use is restricted to the construction of bicycle and pedestrian facilities.

State Gas Tax Fund – To account for all state gas tax-related revenues and expenditures, including street repair, reconstruction, and maintenance. State law requires these gasoline taxes to be used to maintain the City’s street and highway system.

Proposition A Transportation Fund – To account for all revenues and expenditures associated with the 1/2% sales tax approved by Proposition A in 1980. All reven ues of this fund must be expended for transportation-related items as established by the Los Angeles County Transportation Commission.

Proposition C Transportation Fund – To account for all revenues and expenditures associated with the 1/2% sales tax appro ved by Proposition C in 1990. All revenues of this fund must be expended for transportation-related items as established by the Los Angeles County Transportation Commission.

Measure R Transportation Fund – To account for all revenues and expenditures assoc iated with the 1/2% sales tax approved by Measure R in 2008. All revenues of this fund must be expended for traffic relief and transportation upgrades as established by Metro.

Measure M Transportation Fund – To account for all revenues and expenditures ass ociated with the 1/2% sales tax approved by Measure M in 2016. All revenues of this fund must be expended for transportation projects and programs as established by Metro.

Road Maintenance and Rehabilitation Fund – To account for all revenues and expenditu res associated with the funding approved by State Senate Bill 1 in 2017. All revenues of this fund must be expended for eligible transportation purposes.

Air Quality Fund – To account for all revenues and expenditures associated with AB2766. All revenues and expenditures of this fund must be expended for air quality improvement projects as established by the South Coast Air Quality Management District.

Public Works Maintenance and Improvement District Fund – To account for the costs associated with the City’s street light ing and landscape maintenance programs. These costs are deemed to benefit all property owners who are assessed their proportionate share of the costs. These assessments are placed on the property tax bill and collected and remitted by the County of Los Angeles.

Police Facility Assessment Fund – To account for the costs associated with the Citywide assessment district which was formed to pay debt service and other related costs of the police facility.

OTHER SPECIAL REVENUE FUNDS (CONTINUED)

Asset Forfeit ure Federal/State Funds – To account for City’s share of asset forfeiture monies received from state and federal sources.

Disability Access Compliance Fund – To account for all revenues and expenditures received from a surcharge imposed on business licenses in accordance with SB1186.

Home and Rental Rehabilitation Grants Fund – To account for the receipt and expenditure of revenues from U.S. Department of Housing and Urban Development for the HOME program.

Community Development Block Grant Fund – To account for the operations of the Community Development Block Grant Program. All revenues and expenditures of this fund are restricted to target area projects as indicated by the HUD committee and Federal regulations.

Transportation Capital Improvement Fund – To account for allocations from federal, state, and county governments for transportation projects not accounted for in other funds. The purpose for which these monies may be expended shall be limited to those authorized by the agreements with the allocating agency.

Safe Clean Water Program Fund – To account for allocations from Los Angeles County from the Safe Clean Water Program. The funds will be used for stormwater programs and projects and shall be limited to those authorized under the Program.

CITY OF ALHAMBRA
Combining Balance Sheet
Other Special Revenue Funds
June 30, 2021
Law
TDA
State
Proposition A
Proposition C
Assets
enforcement
bikeway
gas tax
transportation
transportation
Assets
Cash and investments
$
229,277
5,388
1,747,545
4,196,534
4,341,214
Restricted cash and investments
—
—
—
—
—
Accounts receivable
100,796
65,992
229,520
6,300
—
Prepaid items
—
—
—
35,000
—
Loans receivable
—
—
—
—
—
Total assets
$
330,073
71,380
1,977,065
4,237,834
4,341,214
Liabilities, Deferred Inflows of Resources,
Liabilities, Deferred Inflows of Resources,
and Fund Balances (Deficits)
and Fund Balances (Deficits)
Liabilities:

Accounts payable
$
3,788
62,692
51,190
92,463
371,146
Due to other funds
28,978
—
—
—
—
Retentions payable
—
3,300
—
—
11,586
Total liabilities
32,766
65,992
51,190
92,463
382,732
Deferred inflows of resources:

Unavailable revenues
88,042
—
16,469
—
—
Fund balances:

Nonspendable:

Prepaid items
—
—
—
35,000
—
Restricted for:

Law enforcement
209,265
—
—
—
—
Streets and transportation
—
5,388
1,909,406
4,110,371
3,958,482
Air quality
—
—
—
—
—
Community development
—
—
—
—
—
Police facility
—
—
—
—
—
Water quality
—
—
—
—
—
Unassigned
—
—
—
—
—
Total fund balances (deficits)
209,265
5,388
1,909,406
4,145,371
3,958,482
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
$
330,073
71,380
1,977,065
4,237,834
4,341,214
96 (Continued)
PublicWorks
Road Maintenance
Maintenance
Measure R
Measure M
& Rehabilitation
and Improvement
Assets
Transporation
Transporation
Transportation
Air Quality
District
Cash and investments $ 2,566,759 2,698,496 2,741,150 257,145 8,732,413 Restricted cash and investments
—
—
—
—
—
Accounts receivable
—
—
156,845
28,817
175,371
Prepaid items
—
—
—
—
—
Loans receivable
—
—
—
—
—
Total assets 2,566,759 2,698,496 2,897,995 285,962 8,907,784 Liabilities, Deferred Inflows of Resources,
and Fund Balances (Deficits)
Liabilities:

Accounts payable
—
216,653
215,052
5,560
194,205
Due to other funds
—
—
—
—
—
Retentions payable
—
—
11,319
—
9,586
Total liabilities — 216,653 226,371 5,560 203,791 Deferred inflows of resources:

Unavailable revenues
—
—
—
—
46,140
Fund balances:

Nonspendable:

Prepaid items
—
—
—
—
—
Restricted for:

Law enforcement
—
—
—
—
—
Streets and transportation
2,566,759
2,481,843
2,671,624
—
8,657,853
Air quality
—
—
—
280,402
—
Community development
—
—
—
—
—
Police facility
—
—
—
—
—
Water quality
—
—
—
—
—
Unassigned
—
—
—
—
—
Total fund balances (deficits) 2,566,759 2,481,843 2,671,624 280,402 8,657,853 Total liabilities, deferred inflows of resources,
and fund balances (deficits) $ 2,566,759 2,698,496 2,897,995 285,962 8,907,784