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CITY OF ALHAMBRA
AGENDA
ALHAMBRA CITY COUNCIL
REGULAR MEETING
FEBRUARY 27, 2023
MISSION STATEMENT
The City of Alhambra is dedicated to responsive, creative leadership and quality services, ensuring desirable neighborhoods and a supportive business environment, while being sensitive to the diversity of our community.
Watch and listen to the meeting as follows:
Zoom Webinar direct link:
https://cityofalhambra-org.zoom.us/j/81321778489?pwd=YU1BTWtqSXpNeEo1MWFSME1mZ1FmUT09 Webinar ID: 813 2177 8489, Passcode: 644586
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(719) 359-4580 or +1(309) 205-3325 or +1(253) 215-8782 or +1(346) 248-7799 or +1(646) 931-3860 or +1(301) 715-8592 or +1(312) 626-6799 or +1(646) 558-8656 and entering Webinar ID: 813 2177 8489 and Passcode: 644586. Please Note: All members of the public calling or logging into the meeting will be muted so that the meeting can proceed. If there are technical difficulties with Zoom during the meeting, the meeting will proceed regardless. Meetings can also be viewed via livestream here: https://www.spectrumstream.com/streaming/alhambra/live.cfm
Addressing the Council:
In person: Section 2.04.210 of the Alhambra Municipal Code establishes the procedures for addressing the Council. Any person wishing to address the Council during the meeting should complete a Speaker Request Card and submit it to the City Clerk so the City Council knows you wish to speak . When called upon by the presiding officer, please step to the podium.
Via Zoom or Telephone: “Raise your hand” - Members of the public may speak by using the “Raise Hand” function during the public comments portion, if on Zoom or telephone . Staff will unmute speakers participating via Zoom or telephone and announce your name when it is your time to speak.
Remarks are limited to 5 minutes; however, the presiding officer may either extend or reduce the maximum time to such period of time as the Council may determine.
Standards of Decorum : Any person addressing the Council who refuses to stop speaking after his/her time has expired or any person who behaves in such a manner as to interfere with or impede the progress of the City Council meeting who, after a request by the presiding officer , refuses to cease such behavior may be removed from the City Council chambers upon direction of the presiding officer.
Enforcement of Decorum : The Chief of Police, or his/her designee, shall be Sergeant -at-Arms of the Council meetings. The Sergeant-at-Arms shall carry out all orders and instructions given by the presiding officer for the purpose of maintaining order and decorum at the Council meeting.
Persons Authorized to be Within Rail : No person, except City official or their designees, shall be permitted within the rail in front of the Council Chamber without the express consent of the Council.
Agenda Tracking Numbers: All numbers listed in bold after the title of each Agenda item are City Clerk tracking numbers that are used for filing and research purposes.
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CITY OF ALHAMBRA
AGENDA
Regular Meeting
ALHAMBRA CITY COUNCIL
Council Chambers, 111 South First Street
February 27, 2023
6:00 p.m.
ROLL CALL:
COUNCIL: Lee, Maza, Maloney, Pérez, Andrade-Stadler
FLAG SALUTE: Led by Mayor Andrade-Stadler
LAND ACKNOWLEDGEMENT: We acknowledge that the land on which we are gathered is the traditional, ancestral, and unceded territory of the Gabrielino/Tongva peoples. We seek to prioritize respect for the historic culture and contemporary presence of the native peoples throughout California, especially in the greater Los Angeles/Alhambra area. We come with respect and gratitud e for the Gabrielino/Tongva people who still consider themselves the caretakers of this land. It is through their examples that we are reminded of our greater responsibility to take care of Mother Earth and to take care of each other.
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. COMMENDATIONS: K9 OFFICER SERGIO LLAMAS AND HIS PARTNER OTIS – F2M23-3
Mayor Andrade-Stadler and the Alhambra City Council, on behalf of the citizens of Alhambra, wish to commend and thank Alhambra Police K9 Officer Sergio Llamas and his partner, Otis, for their outstanding and dedicated service that led to an arrest on November 17, 2022. During a traffic stop for a vehicle code violation, K9 Otis alerted officers to a false fire extinguisher in the vehicle which held approximately 50,000 fentanyl pills. The City of Alhambra is proud of the Alhambra Police Department K9 Unit for the ir diligent training and service to our community. Mayor Andrade -Stadler will present commendations to K9 Officer Llamas and K9 Otis.
PUBLIC HEARING
2. SUBSTANTIAL AMENDMENT TO THE 2021 -2022 ANNUAL ACTION PLAN AND ALHAMBRA HOME-ARP ALLOCATION PLAN – F2M20-58, N2M23-17, M2M23-31
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This is the time and place set by Notice No. N2M23-17 for the City Council to hold a public hearing to consider the proposed Substantial Amendment to the 2021-2022 Annual Action Plan and Alhambra HOME -ARP Allocation Plan for activities benefiting qualifying individuals and families who are homeless, at risk of homelessness, or in other vulnerable populations. The City of Alhambra has been allocated $2,063,172 of HOME American Recovery Plan Act (HOME-ARP) funding from the U.S Department of Housing and Urban Development (HUD). For a community to receive its HOME-ARP allocation, the jurisdiction must develop a HOME -ARP Allocation Plan that will become part of the City’s 2021 -22 HUD Annual Action Plan by Substantial Amendment. To develop Alhambra’s Draft HOME- ARP Allocation Plan, staff consulted with various stakeholders serving the homeless community. These are agencies that facilitate the Continuum of Care (CoC) in Alhambra, including homeless providers, veterans’ groups and publ ic housing agencies.
Consultations revealed strong support for case management; housing navigation; emergency, transitional, and permanent shelter; referral services; expedited substance abuse and mental health treatment services; and capacity-building, including data sharing.
To address these needs within the community, the City will utilize HOME -ARP funds to provide homeless supportive services. The City will contract an experienced homeless services provider, maintain a partnership with the Los Angeles County Department of Mental Health, and train and develop local law enforcement personnel assigned to the homeless outreach team with additional training to administer outreach and field work, including case management and housing navigation, to address the complex needs of the local homeless community. The City will utilize these funds over an estimated five -year period for homeless support services.
Recommended Action: After receiving public testimony, the Mayor should close the public hearing and, at the City Council’s discretion, approve of a Substantial Amendment to the 2021 -2022 Annual Action Plan and Alhambra HOME -ARP Allocation Plan in the amount of $2,063,172 for activities benefiting qualifying individuals and families who are homeless, at risk of homelessness, or in other vulnerable populations; and, direct staff to undertake the steps necessary to finalize Council’s action. (M2M23-31)
CONSENT AGENDA (Item Nos. 3 – 25)
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.
3. ACCEPT GRANT: ALHAMBRA CIVIC CENTER LIBRARY - F2M23-18, M2M23-18
The California State Library developed the Stay & Play Grant Program to support the learning needs of library staff around early childhood literacy and help libraries provide spaces and programming to cultivate early literacy development. In November 2022, the Civic Center Library applied for the Stay & Play Grant Initiative and was subsequently awarded. The Initiative provided staff training and $4,000 to convert the Library’s Storytime Room into a Stay & Play early lit eracy learning space. The grant funds will be used to purchase literacy learning tools, toys and furniture that will enhance discovery and experimentation in young residents. Upon completion of the space transformation, the newly trained team will host 12 weeks of free programs for the community in late spring of 2023.
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Recommended Action: City Council accept $4,000 in grant funds from the California State Library to support the Library’s conversion of the Storytime Room into a Stay & Play early literacy learning space; appropriate revenue and expenditure funds in the amount of $4,000; authorize the City Manager or designee to sign the grant agreement with the California State Library, 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. (M2M23-18)
4. ACCEPT DONATION: ALHAMBRA CIVIC CENTER LIBRARY – F2M23-12, M2M23-20
Staff requests that the City Council accept the gift of $20,000 from the Alhambra Public Library Foundation to be used to support the Library’s Annual Summer Reading Program.
The funds will be used to provide marketing and outreach, books for giveaway, pro gram incentives, a slate of programming by outside vendors and refreshments.
Recommended Action: City Council accept a $20,000 donation from the Alhambra Public Library Foundation to support the Library’s Annual Summer Reading Program; appropriate revenue and expenditure funds in the amount of $20,000; and, direct staff to undertake the steps necessary to finalize Council’s action. (M2M23-20)
5. NIB: 2023 USDA SUMMER FOOD SERVICE PROGRAM (SFSP) – F2M23-25, N2M23- 23 Staff requests that the City Council approve the City’s participation in the 202 3 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 30 through August 4, 2023.
Recommended Action: City Council approve the City’s participation in the 2023 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.
6. NIB: MAIN STREET SEWER MAIN REPLACEMENT PROJECT BETWEEN GRANADA AVENUE AND EL MOLINO STREET – F2M23-26, N2M23-24
The Main Street sewer main between Granada Avenue and El Molino Street is deficient in capacity. The existing 8 -inch sewer pipe is expected to be surcharged during existing and ultimate peak wet weather conditions. The Master Plan recommends replacement of the existing sewer main with a larger diameter sewer main. On September 26, 2022, the City Council approved a contract for engineering design services from West and Associates Engineering Inc. to prepare plans and specifications for the project. The plans and specifications have been prepared and review ed, and they are consistent with the City’s standards.
Recommended Action: City Council approve the distribution of a Notice Inviting Bids to qualified contractors for the Main Street Sewer Replacement Project with bids due no later than 10:30 a.m. on March 30, 2023, and opened at 11:00 a.m. that same day.
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7. AUTHORIZE RFP: PROFESSIONAL ENGINEERING SERVICES FOR THE SEWER SYSTEM FLOW MONITORING AND CAPACITY ANALYSIS STUDY – F2M23-27, RFP2M23-4
The Consent Judgement entered into with the Regional Water Q uality Board states that the City shall complete a Sewer System Flow Monitoring and Capacity Analysis Study by January 2025. The study is to include areas where Capital Improvement Projects have been completed based on the Sewer Master Plan and the Consent Judgement. The Utilities Department has completed all Capital Improvement Projects required under the Consent Judgement and is now requesting approval of the distribution of a Request for Proposals for Professional Engineering Services to conduct a Sewer System Flow Monitoring and Capacity Analysis Study.
Recommended Action: City Council approve the distribution of a Request for Proposals for Professional Engineering Services for a Sewer System Flow Monitoring and Capacity Analysis Study.
8. AUTHORIZE RFP: INSPECTION SERVICES FOR THE FY 2021-2022 SB1 STREET REHABILITATION PROJECT – F2M21-37, RFP2M23-5
On December 12, 2022, the City Council awarded a contract for the FY 2021-2022 SB1 Street Rehabilitation Project. The project area is bound by Hellman Avenue to the south, Almansor Street to the east, the I -10 Freeway to the north and Ramona Road South to the west. Staff is requesting approval of the distribution of a Request for Proposals for Professional Inspection Services for the construction of the Project.
Recommended Action: City Council authorize the distribution of a Request for Proposals for Inspection Services for the FY 2021-22 SB1 Street Rehabilitation Project with proposals due no later than 4:00 p.m. on March 16, 2023.
9. ALLEY DEDICATION: 1515 S. 8th STREET – F2M23-8, M2M23-22, D2M23-2028
Staff requests that the City Council accept an alley dedication for the project located at 1515 S. 8 th Street. As part of the approval for the project located at the aforementioned address, a 2.5-foot dedication of property adjacent to the existing alley was required. The sketch and legal description have been completed and been reviewed and approved by the City Engineer.
Recommended Action: City Council adopt Minute Order No. M2M23-22 as follows:
RESOLVED by the Alhambra City Council as follows: This Council hereby accepts that certain Easement ( Deed No. D2M23-2028) from Charles C.
Tzeng and Karen S. Tzeng as Trustees of The Tzeng Family Trust granting to the City of Alhambra an easement for public streets and highways and public utility purposes and appurtenant facilities the real property in the City of Alhambra, County of Los Angeles, State of California, more particularly described as follows:
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A portion of Lot 82 of Tract No. 4704, in the City of Alhambra, County of Los Angeles, State of California, as per Map
recorded in Book 50 Page 45 of Maps, in the Office of the County Recorder of said County. Said portion being more particularly described as follows: The westerly 2.50 feet of said Lot 82 containing 125 sq. ft. more or less.
and, direct staff to undertake the steps necessary to finalize Council’s action.
10. GRANT AGREEMENT BETWEEN THE CITY OF ALHAMBRA AND THE SAN GABRIEL
VALLEY MUNICIPAL WATER DISTRICT TO PURCHASE ADVANCED METER INFRASTRUCTURE (AMI) WATER METERS – F2M23-18, C2M23-11, M2M23-23
The San Gabriel Valley Municipal Water District (SGVMWD) provides reliable supplemental water for the communities of Alhambra, Azusa, Monterey Park and Sierra Madre in a cost -effective and environmentally responsible manner. The SGVMWD has provided its member agencies with financial assistance to implement programs that will increase water conservation and water use efficiency. The City is actively implementing the Advanced Meter Infrastructure ( AMI) program which includes the purchase and installation of new water meters for residential, commercial, and irrigation users and can use the SGVMWD funds to assist with AMI meter purchases. The AMI meters will improve the City's ability to detect leaks, aud it water usage, and accurately meter usage at each connection.
Recommended Action: City Council approve a Grant Agreement to receive an amount of $50,000.00 from the San Gabriel Valley Municipal Water District to provide assistance to purchase AMI water meters; and, direct staff to take the steps necessary to finalize Council’s action. (M2M23-23)
11. NOTICE OF COMPLETION: REHABILITATION OF GARFIELD RESERVOIR NO. 1 PROJECT– F2M21-65, C2M21-61, M2M23-24
On December 13, 2021, the City Council awarded a contract to J. Colon Coatings Inc. for the Rehabilitation of Garfield Reservoir No. 1 Project in the amount of $630,100 . There were four change orders authorized to complete the project. The change orders were due to unforeseen conditions associated with the floor condition that required repair.
Additional work was also required to repair the roof. These changes resulted in an increase to the contract by $30,225.22, bringing the total project cost to $660.32 5.22. The project has been completed in accordance with the City’s requirements and specifications. As such, it would be appropriate for the City Council to accept the project as complete and instruct the City Clerk that the Notice of Completion be filed with the County of Los Angeles Recorder’s Office.
Recommended Action: City Council accept the work of J. Colon Coating s Inc. for the Rehabilitation of Garfield Reservoir No. 1 Project as complete in the amount of $660,325.22; direct the Finance Director to allocate $30,225.22 from water fund balance to account number 401.80.8884.91903; direct the City Clerk to file a Notice of Completion with the County of Los Angeles for recordation; direct the Finance Director to release the five percent retention 35 days from the date of recordation if no liens are filed; and, direct staff to undertake the steps necessary to finalize Council’s action. (M2M23-24)
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12. ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR FY 2021 -2022 – F2M21-17, M2M23-19
Staff wishes to submit to the City Council the following reports for the year ended June 30, 2022 : City of Alhambra - Annual Comprehensive Financial Report (ACFR); Management Report and Auditor’s Communication Letter; and Appropriations Limit Worksheet with Independent Accountants’ Report . Based on the results of their audit, Moss, Levy, & Hartzheim, 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, 2022: 1) City of Alhambra – Annual Comprehensive Financial Report; 2) Management Report and Auditor’s Communication Letter; and, 3) Appropriations Limit Worksheet with Independent Accountants’ Report. (M2M23-19)
13. APPROVAL OF PARCEL MAP NO. 84020 – F2M23-11, M2M23-25
On January 18, 2023 , the Planning Commission adopted Resolution 22-08 approving Tentative Parcel Map TPM21-01 to allow the creation of two parcels from an existing parcel containing four tied lots with a combined land area of 30,000 square feet at 301 S.
Atlantic Boulevard. On January 18, 2023, the City Engineer signed Parcel Map No. 84020 and recommended recordation of the same. All conditions of approval applicable to Parcel Map No. 84020 have been met. Consequently, approval and recordation of this map is now appropriate.
Recommended Action: City Council adopt Minute Order No. M2M23-25 as follows:
RESOLVED by the Alhambra City Council as follows:
SECTION ONE: Based upon the recommendation of the Director of Community Development in his report dated February 27, 2023, this Council hereby finds and determines that the herein below described project will not violate any of the provisions of Sections 66473.5, 66474, 66474.1 and 66474.6 of the Subdivision Map Act of the State of California relating to findings for approval.
SECTION TWO: This Council hereby approves Parcel Map No. 84020 to subdivide an existing single parcel with contains four tied lots totaling 30,000 square feet and create two separate parcels resulting in the creation of parcel 1 which will consist of 10,338.50 square feet, and parcel 2 which will consist of 16,662.50 square feet located in t he CPD (Commercial Planned Development) zone for the property located at 301 S. Atlantic Boulevard, and authorizes the City Clerk to endorse on the face of the map the certificate which embodies the approval of said map.
14. AUTHORIZATION TO CITY MANAGER TO EXECUTE AN AMENDED AND RESTATED
DDA FOR THE CHAPEL AVENUE AFFORDABLE HOUSING PROJECT, AS WELL AS VARIOUS PROJECT IMPLEMENTING DOCUMENTS – F2M20-71, M2M23-26
On January 31, 2022 the City entered into a disposition and development agreement (“DDA”) for the construction of an affordable housing project on a surface parking lot
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adjacent to the City-owned parking structure on Chapel Avenue. The project proposes to build 44 affordable housing units on site. The Developer, Chapel Housing Partners, L.P., is planning to close on the property in the next few weeks. As the closing date approaches, numerous documents are being revised to effectuate the financing, the construction, and the affordability restrictions governing operation of the project. Since the Council approved the DDA, a few revisions to the deal points have occurred, so staff is requesting Council authorize the City Manager to execute final documents, consistent with the revised deal points. In addition to the changes to the deal structure outlined in the February 27, 2023 joint report by the Community Development Director and City Attorney , several implementing documents will need to be executed (such as lot formation documents, conveyance documents, regulatory agreements, etc.- but these were contemplated in the previous approved DDA.) The original DDA contemplated signature of these documents by the City Manager. In addition to those implementing documents, the City will need to execute a termination of leases for the parking structure that were providing security for a City bond financing that has since been repaid. To facilitate the closing timeline, staff is again requesting that the City Manager be authorized to execute these and any other implementing documents, consistent with the terms of the DDA, and the proposed amendments described in the February 27, 2023 joint report by the Community Development Director and City Attorney.
Recommended Action: City Council authorize the City Manag er to execute an amended and restated disposition and development agreement with Chapel Housing Partners, L.P. as well as various project implementing documents. (M2M23-26)
15. CONTRACT EXTENSION: OPERATION OF THE ALHAMBRA CITY JAIL – F2M20-32, C2M20-54, M2M23-27
On September 28, 2020, the City Council awarded a contract (C2M20-54) to G4S Secure Solutions for operation of the Alhambra City Jail for a three-year period in an amount not to exceed $1,694,715.22 based on the Request for Proposals (RFP2M20 -27). Allied Universal acquired G4S Secure Solutions and assumed all the terms and provisions of the existing agreement (C2M20-54) effective October 8, 2021. As indicated in the City’s Request for Proposals, the term of the contract was to be for a three -year term with an option to extend for two, one -year terms. Due to the current contract expiring June 30, 2023 and the contractor’s satisfact ory performance, staff requested rates from Allied Universal for the remaining two one-year terms, which were $694,960.92 for FY 2023-24 and $727,356.72 for FY 2024-25.
Recommended Action: City Council approve an amendment, subject to final language approval by the City Manager and City Attorney, to the agreement between Allied Universal and the City of Alhambra to provide for the operation of the Alhambra City Jail for an additional two-year period in an amount not to exceed $1,422,318; and, direct staff to undertake the steps necessary to finalize Council’s action. (M2M23-27)
16. RESOLUTION AMENDING THE PERMANENT LOCAL HOUSING ALLOCATION (PLHA) PROGRAM – F2M20-27, R2M23-14, M2M23-28
On July 13, 2020, under Resolution No. R2M20-28, the City Council accepted a PLHA grant, in an amount not to exceed $2,793,768 over five years. PLHA grant funds were
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made available in 2020 to entitlement and non-entitlement cities in California for housing- related projects and programs that assist in addressing the unmet housing needs of local communities. Under this grant, the Council directed a one-time allocation of $116,400 for the San Gabriel Valley Regional Housing Trust (SGVRHT), and the remaining po rtion of $2,677,368 was identified for the predevelopment, development, and acquisition of affordable rental housing in Alhambra-specifically, Mariposa, Chapel, and Water Lots. On December 29, 2022, the California Department of housing and Community Development (HCD) rejected the City’s draft Regulatory Agreement, which contained language subject to tenant preferences, as “problematic”. Funding for a Homeless Supportive/Case Management Services Program under PLHA is available to the City for a period of fiv e years, through April 30, 2028. Under the City’s Homeless Outreach Mental Health Evaluation (HOME) Program, which includes partnership between the Alhambra Police Department and a Specialized Outreach Navigator, PLHA funds will be used to support the cost s of homeless case management and supportive services. Due to formula allocations, the amount of funding has increased, however, to $2,934,464. After deducting for the SGVRHT in the amount of $116,400, the total amount of funds left for the homeless activity is $2,819,064.
Recommended Action: City Council consider changes to the City’s Permanent Local Housing Allocation (PLHA) Program by rescinding Resolution No. R2M20-28 and replacing it by adopting Resolution R2M23-14 entitled: An Authorizing Resolution of the City Council of the City Of Alhambra, California regarding the Permanent Local Housing Allocation (PLHA) Program and to retain funding for eligible housing activities in the City of Alhambra, which re -allocates funds to a n ew eligible activity —Homeless Supportive Services/ Case Management Services; and direct, staff to undertake the steps necessary to finalize the Council’s action, as deemed appropriate. (M2M23-28)
17. CONTRACT AMENDMENT FOR ONGOING SMALL BUSINESS ASSISTANCE GRANT PROGRAM DELIVERY – F2M20-33, K2M20-335, M2M23-29
On February 28, 2022, the City Council approved the establishment of a Small Business Assistance Grant (SBAG) Program, which funding was appropriated through unspent Community Development Block Gr ant-COVID 19 (CDBG -CV) funds. Approximately $48,000 currently remain for SBAG distribution. Ms. Esther Luna, a Retired Annuitant, was contracted to screen and process eligible Alhambra business applications based on program guidelines and other requirements for the U.S. Department of Housing and Urban Development (HUD). An amendment to Ms. Luna’s contract is currently necessary to ensure continued SBAG Program delivery through December 31, 2023. Program Delivery costs are covered under the City’s CDBG-CV funds.
Recommended Action: City Council approve an amendment, subject to final language approval by the City Manager and City Attorn ey, to Contract No. K2M20 -335 between Esther Luna and the City of Alhambra through December 31, 2023 for ongoing Small Business Assistance Grant Program Delivery in an amount charged hourly under itemized timecard not to exceed $75,000; authorize the City M anager to execute the Amendment; and, direct staff to undertake the steps necessary to finalize Council’s action. (M2M23-29)
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18. RESOLUTION APPROVING REVISED CLASS SPECIFICATIONS FOR POLICE
OFFICER, POLICE CORPORAL, POLICE SERGEANT, AND POLICE LIEUTENANT
AND A RESOLUTION APPROVING A REVISED CLASS SPECIFICATION FOR PART-
TIME POLICE RECRUIT AND CHANGE TO PAY RATE FOR THE CLASSIFICATION OF PART-TIME POLICE RECRUIT – F2M23-2, R2M23-12, R2M23-13
Alhambra Municipal Code Section 2.48.070(B) provides that before a class specification becomes effective or other changes are made to the City’s Classification Plan, it shall first be approved the City Council. Staff regularly conduct reviews of class specifications to ensure that job requirements remain current and relevant. Staff identified necessary mandated changes to class specifications for Part-Time Police Recruit and Police Officer and added clarifying language for required experience for the class specifications of Police Corporal, Police Sergeant, and Police Lieutenant. No changes to salary are proposed for Police Officer, Police Corporal, Police Sergeant and Police Lieutenant. Staff is proposing compensation increases for the pay rate of Part-Time Police Recruit.
Recommended Action: City Council, by o ne motion, take the following actions: 1) Adopt Resolution No. R2M23 -12 entitled: A Resolution of the Alhambra City Council approved revised class specifications for Police Officer, Police Corporal, Police Sergeant and Police Lieutenant; and, 2) Adopt Resolution No. R2M23-13 entitled: A Resolution of the Alhambra City Council approving a revised class specification for Part -Time Police Recruit and change to the pay rate for the classification of Part-Time Police Recruit
19. LETTER OF SUPPORT: SB 2 – STRENGTHENING CALIFORNIA’S CONCEALED - CARRY LAWS – F2M23-7, M2M23-30
At the February 13, 2023 Council meeting, Councilmember Pérez requested the Council’s support to bring forward a letter supporting recent gun safety efforts and legislation aimed at strengthening California’s concealed-carry laws. SB 2, authored by Senator Portantino, will implement significant improvements to Ca lifornia’s existing conceal -carry weapon (CCW) laws to address the recent United States Supreme Court decision in New York Rifle and Pistol Association v. Bruen. The Governor and Attorney General are sponsors of SB 2.
Recommended Action: City Council approve that certain letter of support for SB 2 (Portantino) strengthening California’s concealed-carry laws, a copy of which letter is on file in the City Clerk’s Office as File No. F2M23-7 and by this reference incorporated herein and made a part of as though fully set forth herein; and, direct staff to undertake the steps necessary to finalize Council’s action. (M2M23-30)
20. RESOLUTION ESTABLISHING A PROCESSING FEE FOR THE ISSUANCE OF CONCEALED CARRY WEAPON (CCW) PERMITS ; AUTHORIZE AN AGREEMENT
FOR CCW PROCESSING AND APPROPRIATE FUNDS FOR SERVICE
IMPLEMENTATION – F2M23-28, R2M23-7, C2M23-12, M2M23-32
Historically, the Los Angeles County Sherrif’s Department processed and issued all CCW permits within Los Angeles County. Effective August 1, 2022, th e Los Angeles County Sheriff’s Department is no longer accepting applications from residents living within municipalities not served by the Sheriff’s Department. The Alhambra Police Department
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will assume the responsibility for the issuance of CCW permits to the residents of Alhambra. The process includes an application, interview, psychological review, training, gun inspection and proficiency examination, among other details. To support the processing of the CCW permit requirements, the Police Department is requesting to enter into an agreement with MPI, Inc., MyCCW.us, which provide Police Officer Standards and Training (POST) certified background investigators, document collection and notifications to applicants. Additionally, there are several applicant fees associated with the processing of a CCW and the California Penal Code allows cities to charge fees to offset the cost of CCW license issuance. Therefore, staff requests that the City Council adopt a resolution to establish administrative fees for the issuance of CCW permits and add those fees to the City’s Fee Schedule. Finally, staff requests an expenditure appropriation of $15,000 for the implementation of CCW permit processing services.
Recommended Action: City Council adopt Resolution No. R2M23-7 entitled: A Resolution of the City Council of the City of Alhambra establishing Administrative Fees for the processing and issuance of Concealed Carry Weapon Permits ; authorize an agreement, subject to final language approval by the City Manager and City Attorney, between the City of Alhambra and MPA, Inc., MyCCWs.us, for the processing of CCW permits; appropriate funds in the amount of $15,000 for the implementation of services; and, direct staff to undertake the steps necessary to finalize Council’s action. (M2M23-32)
21. TREASURER’S REPORT – F2M23-1
Recommended Action: City Council receive and file as submitted the Treasurer's Report prepared by the Director of Finance for the month of January 2023, listing all of the City's investments as of January 31, 2023.
22. MINUTES
Recommended Action: City Council review and approve as submitted the Minutes of the May 24, 2021 regular meeting of the City Council ; and, the June 14, 2021 special meeting of the City Council.
23. PERSONNEL ACTIONS – F2M23-1
Recommended Action: City Council ratify the actions of the City Manager set forth in that certain Personnel Actions document dated February 27, 2023 showing the various appointments, classifications, salary changes, etc., since the last City Council meeting.
24. RESTRUCTURING OF THE DEPARTMENT OF FINANCE : ADOPTION OF A
RESOLUTION APPROVING A CLASS SPECIFICATION FOR SENIOR ACCOUNTANT AND ADOPTION OF AN URGENCY ORDINANCE AMENDING ORDINANCE NO.
O2M23-4809 RELATING TO THE POSITION OF SENIOR ACCOUNTANT IN THE FINANCE DEPARTMENT – F2M23-2, R2M23-11, O2M23-4810, M2M23-33
The Finance Department recently experienced two vacancies due to the retirement of a Senior Account Clerk and resignation of an Accounting Manager. This creates opportunity to examine the existing staffing structure, operations and functions, and customer service.
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After two failed recruitments for an Accounting Manager, staff has determined the need to replace the position with a Senior Accountant position. The Senior Accountant position will require less supervisory experience, but will still provide a high le vel of technical and complex financial support to the Finance Director, while providing supervision to staff in the Accounting Division. The Senior Account Clerk, who performed Accounts Receivables billing of false alarms, damage to City property, and other billing, recently retired. Staff is requesting to eliminate the budget funding and appropriation for the Senior Account Clerk position and reappropriate said funding to create an Account Clerk position, which will result in a cost savings. With the cost savings, staff is requesting to fund one additional Account Clerk for the Payroll Division to provide additional support. Staff will also eliminate the budget funding for one full -time Cashier I position to fund the additional full -time Account Clerk. Additionally, Alhambra Municipal Code Section 2.48.070 (B) provides that before a class specification becomes effective or other changes are made to the City’s Classification Plan, it shall first be approved by the City Council. Therefore, staff recommends that the City Council adopt a resolution approving the class specification for the Senior Accountant position. An urgency ordinance memorializing these changes is necessary in order to allow for the immediate recruitment of the new classification of Senior Ac countant and to provide the Finance Department with the much -needed expertise and support necessary.
Recommended Action: City Council, by one motion, take the following actions: 1) Approve the restructuring of the Department of Finance by eliminating the budget appropriation for one full-time Cashier I, one full-time Senior Account Clerk, and one full- time Accounting Manager and reallocating said appropriations to fund one full-time Senior Accountant and two full-time Account Clerk positions; 2) Adopt Resolution No. R2M23- 11 entitled: A Resolution of the Alhambra City Council approving a class specification for Senior Accountant; 3) Direct the City Attorney to introduce and give readi ng by title only, waiving further reading to the following urgency ordinance entitled:
Ordinance No. O2M 23-4810: An Urgency Ordinance of the Alhambra City Council amending Ordinance No. O2M23 -4809 relating to the position of Senior Accountant in the Finance Department
and adopt same by a 4/5 vote of the City Council, after which such ordinance shall go into effect immediately; and,
4) Direct staff to undertake the steps necessary to finalize the City Council’s action. (M2M23-33)
25. SECOND READING AND ADOPTION OF AN ORDINANCE ESTABLISHING AND
AMENDING SALARY AND BENEFITS FOR CERTAIN EXECUTIVE TEAM MEMBERS AND CONFIDENTIAL EMPLOYEES – F2M23-2, O2M23-4809, M2M23-21
On February 13, 2023, the City Council introduced Ordinance No. O2M23-4809 for a first reading. The Ordinance is now ready for second reading and adoption. However, the February 27, 2023 agenda also includes an urgency ordinance, that, if adopted, will revise certain provisions of Ordinance No. O2M23-4809. If the Council does adopt the urgency ordinance, staff will revise the affected provisions of Ordinance No. O2M23 -4809 accordingly.
13 2-27-23
Recommended Action: City Council declare introduced for its second reading and adopt the following ordinance entitled:
Ordinance No. O2M23-4809: An Ordinance of the Alhambra City Council establishing and amending salary and benefits for certain Executive Team Members and Confidential Employees superseding Ordinance No. O2M21 -4795 and Ordinance No. O2M22-4804; and,
If the Council adopts urgency Ordinance No. O2M23-4810 on February 27, 2023, City staff is directed to revise the text of Ordinance No. O2M23 -4809 to reflect the changes made by the urgency ordinance. (M2M23-21)
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) F2M23-7
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 regular meeting of the Alhambra City Council is scheduled for Monday, March 13, 2023 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 on file with the City Clerk in Alhambra City Hall, located at 111 South First Street, Alhambra, California, and are available for inspection during regular office hours, Monday through Thursday from 7:00 a.m. to 5:30 p.m. 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 regu lar 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 meeting.
Recordings are also available for viewing by the public on the City of Alhambra’s website, a t the Alhambra Public Library and, upon appointment, in the City Clerk’s Office.
Americans with Disabilities Act: If you require special assistance to participate in any City meeting (including assisted listening devices), please contact the City Clerk's Office at (626) 570 -5090.
Notification of at least 72 hours prior to the meeting will enable the City to make re asonable arrangements to ensure accessibility to this meeting.
14 2-27-23
Translation Services Requests: If you require translation services in order to participate in a meeting please contact the City Clerk’s Office at (626) 570-5090. All requests for translation services shall be made by 4 p.m. the Thursday prior to the City Council meeting. If translation is not requested by 4 p.m. the Thursday prior to the City Council meeting, staff will try to accommodate the request if possible.
LAUREN MYLES, CMC
CITY CLERK
Annual
Comprehensive
Financial Report
Fiscal Year Ended
June 30, 2022
California
CITY OF ALHAMBRA,
CALIFORNIA
Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2022
(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 v
Officials of the City of Alhambra xi
Organizational Chart xii
GFOA Certificate of Achievement for Excellence in Financial Reporting xiii
Financial Section:
Independent Auditor’s Report 1
Management’s Discussion and Analysis 4
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position 17
Statement of Activities 18
Fund Financial Statements:
Balance Sheet – Governmental Funds 20
Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position 21
Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds 22
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activ ities 23 Statement of Net Position – Proprietary Funds 24
Statement of Revenues, Expenses, and Changes in Fund Net Position – Proprietary Funds 25
Statement of Cash Flows – Proprietary Funds 26
Statement of Fiduciary Net Position 28
Statement of Changes in Fiduciary Net Position 29
Notes to the Basic Financial Statements 31
Required Supplementary Information:
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual:
General Fund 81
Housing Asset Fund 84
American Recovery Act Fund 85
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 88 Schedule of Changes in Net Pension Liability and Related Ratios – Safety Plan Last Ten Fiscal Years 90
Schedule of Contributions – Safety Plan Last Ten Fiscal Years 92 Schedule of Changes in Total Pension Liability and Related Ratios – Other Pension Plan Last Ten Fiscal Years 94
Schedule of Contributions – Other Pension Plan Last Ten Fiscal Years 95 ii
CITY OF ALHAMBRA
Annual Comprehensive Financial Report
Table of Contents (Continued)
Page
Schedule of Changes in Total Other Post-Employment Benefits (OPEB) Liability and Related Ratios – PERS Health Plan Last Ten Fiscal Years 96 Schedule of Changes in Total Other Post-Employment Benefits (OPEB) Liability and Related Ratios – City Council Plan Last Ten Fiscal Years 97
Supplementary Information
Combining and Individual Fund Statements and Schedules:
Nonmajor Governmental Funds:
Combining Balance Sheet – Nonmajor Governmental Fun ds 102 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Governmental Funds 108
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Other Special Revenue Funds:
Law Enforcement Fund 113
TDA Bikeway Fund 114
State Gas Tax Fund 115
Proposition A – Transportation Fund 116
Proposition C – Transportation Fund 117
Measure R – Transportation Fund 118
Measure M – Transportation Fund 119
Road Maintenance & Rehabilitation Fund 120
Air Quality Fund 121
Public Works Maintenance and Improvement District Fund 122 Police Facility Assessment Fund 123
Asset Forfeiture Fund 124
Disability Access Compliance Fund 125
Home and Rental Rehabilitation Fund 126
Community Development Block Grant Fund 127
Transportation Capital Improvements Fund 128
Safe Clean Water Program Fund 129
MTA Local Transportation Fund 130
Police Facility Fund 131
Parking Authority Debt Service Fund 132
Capital Outlay Fund 133
Internal Service Funds:
Combining Statement of Net Position (Deficits) – Internal Service Funds 135 Combining Statement of Revenues, Expenses, and Changes in Net Position (Deficits) – Internal Service Funds 136
Combining Statement of Cash Flows – Internal Service Funds 137
iii
CITY OF ALHAMBRA
Annual Comprehensive Financial Report
Table of Contents (Continued)
Page
Statistical Section (Not Covered by Independent Auditor’s Report)
Net Position by Component - Last Ten Fiscal Years 1 40 Changes in Net Position - Last Ten Fiscal Years 142
Fund Balances of Governmental Funds - Last Ten Fiscal Years 146 Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years 148 Assessed Value and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years 150 Direct and Overlapping Property Tax Rates - Current Year and Nine Years Ago 152 Property Tax Levies and Collections - Last Ten Fiscal Years 154 Principal Property Tax Payers - Current Year and Nine Years Ago 155 Ratios of Outstanding Debt by Type - Last Ten Fiscal Years 156 Direct and Overlapping Debt 157
Legal Debt Margin Information - Last Ten Fiscal Years 160 Pledged Revenue Coverage - Last Ten Fiscal Years 1 62
Demographic and Economic Statistics 164
Principal Employers - Current Year and Nine Years Ago 165 Full-time Equivalent City Government Employees by Function/Program – Last Ten Fiscal Years 166
Operating Indicators by Function - Last Ten Fiscal Years 168 Capital Asset Statistics by Function - Last Ten Fiscal Years 170
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Introductory Section
v
City of Alhambra
February 27, 2023
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 Comprehensive Annual Financial Report of the City of Alhambra for the fiscal year ended June 30, 2022. Responsibility for the accuracy of the presented data and the completeness and fair ness of the presentation, including all disclosures, rests with the City. It is our opinion that 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) a s promulgated by the Government Accounting Standards Board. This report consists of management’s representations concerning the finances of the City of Alhambra, Ca lifornia. Consequently, management assumes full responsibility for the completeness an d reliability of all of the information presented in this report. To provide a reasonable b asis for making these representations, management of the City has established a comprehens ive 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 Cit y’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 b een designed to provide reasonable rather than absolute assurance that the financial s tatements 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 Moss, Levy, & Hartzheim, 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 ind ependent audit was to provide reasonable assurance that the financial statements of the City of Alhambra, California for the fiscal year ended June 30, 2022 are free of material misstateme nts. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles use d and significant estimates made by management; and evaluating the overall financial st atement presentation. Based upon the audit, the independent auditors concluded that ther e was a reasonable basis for rendering an unmodified opinion that the City of Alhambra, California’s financial statements for the fiscal year ended June 30, 2022 are fairly presented in co nformity with GAAP. The independent auditors’ report is presented as the first component of the financial section of this report.
vi
The independent audit of the financial statements o f the City was part of a broader, federally mandate d “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 in ternal controls and compliance with legal requireme nts with special emphasis on internal controls and lega l requirements involving the administration of fede ral awards. These reports are available in the City’s separately issued Single Audit Report.
Management’s Discussion and Analysis (MD&A) immediately follows the independent auditor’s report and provides a narrative introduction, overview, and an alysis of the basic financial statements. MD&A complement this letter of transmittal and should be read in conjunction with it.
Profile of the City of Alhambra
The City of Alhambra, incorporated on July 11, 1903 , became the third city in the state to adopt by ch arter the Council-Manager form of government. Council members are nominated by district and elected at- larg e 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 81,211 in 2021. The City is diversified with single family and multiple family housing deve lopment, commercial development, and significant industrial development.
The City provides a full range of municipal service s. 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. The City of Alhambra’s economic base is a combination of commercial and light industrial business with 7,688 active businesses located in the City generating about $19.4 million in sales tax revenues and $11.7 million in Measure AL transaction use tax revenues. Approximately 35 percent of that amount is from “Auto Row” (including both auto sales and leas es), which currently has 17 new and used auto dealerships.
This past year Alhambra businesses transitioned int o post-pandemic recovery mode with many businesses returning to normal operations. The City welcomed new business openings including but not limited to Tesla, Harbor Freight, Raising Cane’s, All that Shabu, Tas ty Pot, Chevron (Gas Station), Dehli Belly, STR33T Records, and Vez Guitar Store. The City anticipates the following businesses will open next year: SkyZone Trampoline Park, Dollar Tree, Sunright Tea Studio, Burnt Belly, and additional Starbucks, Panda Expres s and Raising Cane’s locations.
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 periodica lly updated and the City is consistently working to achieve its goals.
City goals for Fiscal Year 2022/23 are as follows:
Goal 1: Expand Affordable Housing
Goal 2: Increase Economic Development
Goal 3: Enhance Green Space
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Goal 4: Implement Historic Preservation
Goal 5: Develop Shorb Plan
Goal 6: Recruit and Retain Police Officers
Goal 7: Secure Grant Funding Opportunities
Goal 8: Improve Transportation and Mobility
Goal 9: Improve Sustainability
Goal 10: Evaluate Boards and Commissions
Goal 11: Modernize/Upgrade Technology
Goal 12: Continue Community Outreach
Goal 13: Address Lifestyle Enhancements
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 propose d $25.2 million of capital projects for Fiscal Year 2 022/23, which includes $10.1 million for major stre et projects, $11.3 million for water and sewer system improvements, $516,350 in public safety capital expenditures, $2 million for parks and recreation, and $1.2 million for technology enhancements.
Internal Controls. Management of the City is responsible for establishing and maintaining internal control designed to ensure that the assets of the governmen t are protected from loss, theft, or misuse, and to ensure that adequate accounting data is compiled to allow for the preparation of financial statements in conf ormity with U.S. GAAP. Internal control is designed to pro vide reasonable, but not absolute, assurance that t hese objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) t he valuation of costs and benefits requires estimat es and judgments by management. Management asserts that, 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 ca pital outlay. The ledgers of the City and its compo nent units are maintained by the line-item detail or obj ect 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 estimate d annually and measured against actual revenues received. The City also maintains an encumbrance accounting system for budgetary control. Encumbrances generall y are re-appropriated as part of the following year 's budget.
Major Initiatives . Private investment and development continue to oc cur throughout the City with several significant projects, including the following that were approved and anticipated to begin construction in Fiscal Year 2022/23:
Mariposa -Affordable Housing
Approval to construct a 78,600-square foot, 7-story, 50-unit residential, and one commercial unit, mixed- use apartment complex and wireless facility for AT&T towers on a site of 18,399 square feet. 205 & 207 S. Marguerita
To construct a 7-unit condominium complex consisting of three multi-family condominium buildings with attached garages on the ground floor. A tentative tract map is included to subdivide the individual condos.
viii
726 E. Main
Approval for an adaptive reuse project: Chinatown Service Center (CSC). CSC is converting the previous Wondries Nissan building into a health and services center. 918-924 E Main Street
This project involves construction of a new 14,328-square foot 3-story commercial building with three retail units on the ground floor, and co-working on the 2nd and 3rd floor on a site of approximately 14,404-square feet.
209 N. Monterey
Approval to construct a 10,494-square foot 9-unit condominium complex. The project consists of three duplex buildings, and one triplex building and includes subterranean parking. 1416 Benito
To construct a 7,855-square foot, 7-unit apartment complex on a site of 13,750 square feet. The project consists of two duplex buildings, one triplex building, and subterranean parking. 749-801 S. Sierra Vista
Approval to develop a two-story 18-unit condominium complex on a site of 27,020 square feet. This project includes a tentative tract map to merge three existing lots and to subdivide the individual condos.
As noted below, there are also several significant projects that are currently under construction and anticipated to be completed in this Fiscal Year.
1301 W Valley
This project involves construction of a new 4,388 square foot fully automated car wash with self-serve vacuums on a site approximately 41,321 square feet.
2000 W Mission
This project involves construction of a new 69,402 square foot self-storage building on a site of approximately 4.99 acres.
123 S Chapel Ave.
New 5-story, mixed-use building consists of 3,212 S F of office space on the ground level, 109-space residential and 13-space office parking garage on t he ground and 2nd level, and 37-unit condominiums occupying 3rd through 5th floors.
747-753 S. Stoneman
New 2-story, 10-unit condominiums with subterranean parking in a two-lot merger of 19,485 SF total. 101 S Chapel
To construct a 4-story, mixed use building on a 28, 390 square-foot (SF) in a proposed 3-lot merger consisting of: a 3-story, 28-unit condominium over one-story commercial office space of 1,000 SF in floor area and a 73-space parking garage.
720 S Stoneman
2-story, 7-unit condominiums of 7,790 square feet of living area with subterranean garage of 17 parking spaces on a 12,984 S.F. lot.
300 E Alhambra
To construct a 6-unit residential condominium complex with one level of subterranean on an approximate land area of 12,390 square feet.
ix
15 S Chapel
Planned Development Permit to construct a new three-story mixed-use development that includes 17,231 square feet of residential split between 10 units and 1,500 square feet of retail office space located in the Central Business District zone.
1139 W. Main Street – BMW Dealership Expansion
Addition of 25100 square foot 2 story Dealership Service Building with car service and 2 tier parking. 1428 S. Marengo project
Demo and Grading of Mix used project - development on a multi-parcel lot total of 11.6-acre which includes a subdivision resulting in 4 separate lots and construction of multiple buildings : 1) a one-story retail building of 14,290 square feet with on-grade parking, 2) an approximately 18,000 square feet, 2 - story medical office building with a second floor deck, underground parking, and on-grade parking, 3) a 2-story annex building of 18,000 square feet with a second floor deck called “Commons” to the existing Skilled Nursing Facility 4) 126 unit 3-story townho use condominium complex with a recreation center/swimming pool.
1116-1118 N Monterey
To build a seven-unit condominium complex on an approximate land area of 14,408 square feet. 108-188 N. Monterey (201 E. Bay State)
To construct two mixed use buildings on a 1.45-acre lot consisting of: a 4-story condominium with mezzanine penthouses over one-story commercial spac e and parking garage and a 6-tier open parking garage over one-story commercial space. Subterranean parking for condominiums is proposed underneath the two buildings.
For the City of Alhambra, the financial well-being of the City depends on its ability to adapt to chan ging economic conditions and being prepared for financia l uncertainties and emergencies. The City maintain s a Fund Balance Policy to identify reserves for General Fund or ‘rainy-day’ fund to supplement operating revenue in years of shortfall. The minimum General Fund Reserve Balance will be committed in an effort to reach 20% of the General Fund operating expenditures and will be reviewed during periods of economic stagnation and uncertainty to avoid reductions in operating service levels. Likewise, in periods of economic p rosperity, funding levels will be reviewed for possible increases above the recommended General Fund Reserve Balance percentage. The City has Emergency Reserves of $10,685,008 (12.9%) at June 30, 2022.
Awards and Acknowledgements
The Government Finance Officers Association (GFOA) of the United States and Canada awarded a Certificate of Achievement in Excellence in Financial Reporting to the City of Alhambra for its Comprehensive Annu al Financial Report for the year ended June 30, 2021. The Certificate of Achievement is a prestigious nat ional award-recognizing conformance with the highest stan dards for preparation of state and local government financial reports.
In order to be awarded a Certificate of Achievement , a government unit must publish an easily readable and efficiently organized comprehensive annual financia l report, whose contents conform to program standar ds.
Such comprehensive annual financial report must sat isfy both accounting principles generally accepted in the United States of America and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. The City of Alhambra has received a Certificate of Achievement for the last 33 consecutive years. We believe our current report continues to conform to the Certificate of Achievement Program requirements, and we are again submitting it to the GFOA.
Preparation of this report was accomplished through the efficient and dedicated services of everyone in the Finance Department. Appreciation is also expressed to the City Manager, the entire executive team for their support of the financial operations of the City during this past fiscal year, and to the Mayor and Councilmembers for their stewardship in maintaining the highest standards of professionalism in the Management of the City's finances. We also thank City staff and our auditors, Moss, Levy, & Hartzheim, LLP, for their time and assistance in preparing the report.
Respectfully submitted,
i a Binnquist
City Manager
Pearl Lieu
Director of Finance
x
x
i
Officials of the City of Alhambra
Mayor
Adele Andrade-Stadler
Fifth District
City Council Members
S
asha Renée Pérez Jeffrey Maloney
Fourth District Third District
Ross Maza Katherine Lee
Second District First District
City Administration and Department Heads
City Manager ........................................................................................................................... Jessica Binnquist Assistant City Manager ................................................................................................................... Lucy Garcia City Attorney ............................................................................................................................... Joseph Montes Fire Chief ..................................................................................................................................... Jeffrey Ragusa Police Chief ................................................................................................................................... Kelley Fraser Director of Community Development .............................................................................................. Andrew Ho Director of Finance ............................................................................................................................. Pearl Lieu Director of Human Resources .......................................................................................................... Mariam Ko Director of Library Services ...................................................................................................... Hilda LohGuan Director of Parks and Recreation ................................................................................................... Mike Macias Director of Public Works & Utilities ................................................................................................ Martin Ray City Clerk .................................................................................................................................... Lauren Myles
xii
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 Commission
& Board of Appeals
Parks &
Recreation
Commission
Planning
Commission
Historic Preservation
Commision
HCDA Citizen
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
Sustainability
Commission
Human Relations
Commission
Design Review
Board
Board of
Library
Trustees
Transportation
Commission
Youth
Commission
City Council
PEOPLE OF ALHAMBRA
Government Finance Officers Association
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, 2021
Executive Director/CEO
xiii
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Financial Section
PARTNERS
CRAIG A HARTZHEIM, CPA
HADLEY Y HUI, CPA
COMMERCIAL ACCOUNTING & TAX SERVICES 9465
WILSHIRE BLVD., 3
RD FLOOR
BEVERLY HILLS, CA 90212
GOVERNMENTAL AUDIT SERVICES
5800 HANNUM AVE., SUITE E
CULVER CITY, CA 90230
ALEXANDER C HOM, CPA TEL: 310.670.2745 TEL: 310.670.2745 ADAM V GUISE, CPA FAX: 310.670.1689 FAX: 310.670.1689
TRAVIS J HOLE, CPA
WILSON LAM, CPA
www.mlhcpas.com www.mlhcpas.com
1 OFFICES: BEVERLY HILLS ∙ CULVER CITY ∙ SANTA MARIA
MEMBER AMERICAN INSTITUTE OF C.P.A.’S ∙ CALIFORNIA SOCIETY OF MUNICIPAL FINANCE OFFICERS ∙ CALIFORNIA ASSOCIATION OF SCHOOL BUSINESS OFFICIALS INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and
Members of the City Council
City of Alhambra
Alhambra, California
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information for the City of Alhambra, California (the “City”) as of and for the fiscal year ended June 30, 2022, and the related notes to the financial statements, whi ch collectively comprise the City’s basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred t o above present fairly, in all material respects, t he respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2022, and the respective changes in financial position, and where applicable, cash flows thereof, for the fisca l year then ended in accordance with accounting pri nciples generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States o f America and the standards applicable to financial audits co ntained in Government Auditing Standards, issued by the Comptroller General of the United States. Our respo nsibilities under those standards are further descr ibed in the Auditor’s Responsibilities for the Audit of the Fin ancial Statements section of our report. We are req uired to be independent of the City, and to meet our other ethi cal responsibilities, in accordance with the releva nt ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and f air presentation of these financial statements in a ccordance with accounting principles generally accepted in th e United States of America, and for the design, imp lementation, and maintenance of internal control relevant to the preparation and fair presentation of financial sta tements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management i s required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a go ing concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
2 Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance a bout whether the financial statements as a whole ar e free from material misstatement, whether due to fraud or erro r, and to issue an auditor’s report that includes o ur opinions.
Reasonable assurance is a high level of assurance b ut is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally acc epted auditing standards and Government Auditing St andards will always detect a material misstatement when it exists. The risk of not detecting a material missta tement resulting from fraud is higher than for one resulti ng from error, as fraud may involve collusion, forg ery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditin g Standards, we:
• Exercise professional judgment and maintain profes sional skepticism throughout the audit.
• Identify and assess the risks of material misstat ement of the financial statements, whether due to fraud or error, and design and perform audit proced ures responsive to those risks. Such procedures include examining, on a test basis, evidence regard ing the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relev ant to the audit 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. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting polici es used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are cond itions or events, considered in the aggregate, that raise substantial doubt about the City’s abili ty to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged w ith governance regarding, among other matters, the planned scope and timing of the audit, significant audit fi ndings, and certain internal control-related matter s that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the Uni ted States of America require that Management’s Dis cussion and Analysis, Budgetary Comparison Schedules of the General and Major Special Revenue Funds, the sched ule of changes in net pension liability and related ratios for the miscellaneous, safety, and other defined b enefit plans, the schedules of contributions of the miscellaneous, sa fety, and other defined benefit pension plans, and the schedules of changes in total other postemployment benefits l iability and related ratios for the PERS Health and City Council plans on pages 4 through 15 and 81 through 97 ident ified as required supplementary information in the accompanying table of contents, be presented to sup plement the basic financial statements. Such inform ation is the responsibility of management and, although not a pa rt of the basic financial statements, is required b y the Governmental Accounting Standards Board, who consid ers it to be an essential part of financial reporti ng for placing the basic financial statements in an approp riate 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 t he methods of preparing the
3 information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not p rovide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectiv ely comprise the City’s basic financial statements. The Combini ng and Individual Nonmajor Governmental Fund Financ ial Statements, Combining Internal Service Fund Financi al Statements, and Budgetary Comparison Schedules f or the Nonmajor Governmental Funds are presented for purpo ses of additional analysis and are not required par ts of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other rec ords used to prepare the basic financial statements . The information has been subjected to the auditing proc edures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the un derlying accounting and other records used to prepare the ba sic 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 Combining an d Individual Nonmajor Governmental Fund Financial Statements, Combining Internal Service Fund Financi al Statements, and Budgetary Comparison Schedules f or Nonmajor Governmental Funds are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other informati on comprises the introductory and statistical sections but does not include the basic financial statement s and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other inform ation, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists be tween the other information and the basic financial statements, or the other information otherwise appears to be ma terially misstated. If, based on the work performed , we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated February 10, 2023 , on our consideration of the City’s internal control ov er financial reporting and on our tests of its comp liance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpos e of that report is to describe the scope of our testing of i nternal control over financial reporting and compli ance and the results of that testing, and not to provide an opin ion on internal control over financial reporting or on compliance.
That report is an integral part of an audit perform ed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.
Moss, Levy & Hartzheim, LLP
Culver City, California
February 10, 2023
CITY OF ALHAMBRA
Management’s Discussion and Analysis
June 30, 2022
4 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, 2022. We encourage readers to consider the information presented here in conjunction with addi tional 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 17.
Financial Highlights
The following are some key financial highlights for the fiscal year June 30, 2022:
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 $151 ,429,094 (net position), which was comprised of net investment in capital assets of $206,869,245, restr icted for debt service of $1,123, restricted for pr ojects and programs of $40,431,482, and unrestricted net deficit of $95,872,756. The City’s total net position increased by $36,026, 195 during the current fiscal year, comprised of an increase in governmental activities of $29,979,866, and an increase in business-type activities of $6,046,329.
As of June 30, 2022, the City’s governmental funds reported combined fund balances of $76,182,492, an increase of $2,649,461 in comparison with the prior fiscal year. Of this amount, $35,551,876 or approximately 45% of total fund balances, are avail able for spending at the City’s discretion (committ ed, assigned, and unassigned fund balance).
At the end of the current fiscal year, committed, a ssigned, and unassigned fund balance for the Genera l Fund was $34,315,874, or 47% of total general fund expenditures. However, the City has committed or assigned $32,797,217 for various projects and programs leaving $1,518,657 as unassigned .
Overview of the Financial Statements
This discussion and analysis are intended to serve as an introduction to the City’s basic financial st atements. The City’s basic financial statements comprise of three components: 1) government-wide financial statement s, 2) fund financial statements, and 3) notes to basic financial statements. This report also contains su pplementary 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 an d deferred outflow of resources and liabilities and deferred inflow of resources, w ith 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 pos ition changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving ri se 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 c ash flows in future fiscal periods (e.g., uncollect ed taxes and earned but unused vacation leave).
Both of the government-wide financial statements distinguish functions of the City that are principall y supported by taxes and intergovernmental revenues (governmental activities) . The governmental activities of the City include general government, public safety, public w orks, housing, health and community development, cu lture 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.
CITY OF ALHAMBRA
Management’s Discussion and Analysis
June 30, 2022
5 The government-wide financial statements include no t only the City itself (known as the primary govern ment), but also four legally separate entities, the Alhamb ra Capital Improvements Corporation, Alhambra Golf course/Clubhouse Corporation, Alhambra Parking Auth ority, and Alhambra Facilities Financing Authority. The City is financially accountable for these entities and financial information for these blended compone nt units is reported within the financial information presented for the primary government itself.
The government-wide financial statements can be found on page 17 and page 18 of this report.
Fund Financial Statements. A fund is a grouping of related accounts used to m aintain control over resources that have been segregated for specific activities o r objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate comp liance 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 essent ially the same functions reported as governmental activities in the government-wide fina ncial statements. However, unlike the governmental- wide financial statements, governmental fund financial s tatements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the 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 stateme nts, 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 financ ial decision. Both the governmental fund balance sh eet 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 govern mental fund balance sheet and in the governmental fund sta tement of revenues, expenditures, and changes in fu nd balances for the General Fund, Housing Asset, and A merican Rescue Plan Act Fund which are considered t o be major funds. Data from the other 21 governmental fu nds are combined into a single, aggregated presenta tion.
Individual fund data for each of these other govern mental 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 required supplementary information section on page 81 through page 83.
The basic governmental fund financial statements can be found on page 20 and page 22 of this report.
Proprietary Funds. The City maintains two different types of propriet ary funds. Enterprise funds are used to report the same functions presented as business-typ e activities in the government-wide financial state ments. The City uses enterprise funds to account for its water , sewer and storm drain, sanitation, and golf cours e/clubhouse operations. Internal service funds are an accounting device used to accumulate and all ocate costs internally among the City’s various functions. The City uses i nternal service funds to account for self-insurance activities, including: general claims liability and workers’ co mpensation insurance, and also vehicle operation an d maintenance, and compensated absences.
CITY OF ALHAMBRA
Management’s Discussion and Analysis
June 30, 2022
6 Because these services benefit both governmental an d business-type functions, the services have been a llocated to governmental and business type activities in the government-wide financial statements.
Proprietary funds provide the same type of informat ion as the government-wide financial statements, on ly in more detail. The proprietary fund financial stateme nts provide separate information for the water, sew er 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 24 through page 27 of this report.
Fiduciary Funds. The City maintains one fiduciary fund, a Private P urpose Trust for the Alhambra Redevelopment Agency Successor Agency. Fiduciary Fu nds are used to account for financial resources hel d for the benefit of parties outside the City government. Fiduciary Funds are not reflected in the governmen t-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 28 and page 29 of this report.
Notes to the Basic Financial Statements. The notes to the basic financial statements provid e additional information that is essential to a full understandi ng of the data provided in the government-wide and fund financial statements. The notes to the basic financ ial statements can be found on pages 31 through 80 of this report.
Other Information. In addition to the basic financial statements and a ccompanying notes, this report also presents certain required supplementary information concerning the City’s progress in funding its oblig ation to provide pension benefits and Other Post-Employment Benefits (OPEB) to its employees. Required supplementary information can be found on pages 81 through 97 of this report.
Supplementary information on non-major governmental funds and 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 102 through 138 of this report.
CITY OF ALHAMBRA
Management’s Discussion and Analysis
June 30, 2022
7 Government-wide Financial Analysis
Governmental Business-type
activities activities Total
2022 2021 2022 2021 2022 2021
Assets:
Current and other assets $ 116,548,765 101,118,839 24 ,753,015 23,617,041 141,301,780 124,735,880 Capital assets 148,411,325 143,567,144 80,527,017 79,809,629 228,938,342 223,376,773 Total assets 264,960,090 244,685,983 105,280,032 103 ,426,670 370,240,122 348,112,653 Deferred outflow of resources 29,421,405 32,250,074 3,651,026 3,914,680 33,072,431 36,164,754 Liabilities:
Current and other liabilities 33,224,897 198,653,905 5,222,316 5,796,018 38,447,213 204,449,923 Long-term liabilities 144,029,036 24,696,892 24,696, 892 32,209,640 168,725,928 56,906,532 Total liabilities 177,253,933 223,350,797 29,919,208 38,005,658 207,173,141 261,356,455 Deferred inflow of resources 40,223,931 6,661,495 4, 486,387 856,558 44,710,318 7,518,053 Net position:
Net investment in capital assets 137,047,403 128,928 ,306 69,821,842 65,976,917 206,869,245 194,905,223 Restricted 40,431,482 40,202,369 1,123 — 40,432,60 5 40,202,369 Unrestricted (100,575,254) (122,206,910) 4,702,498 2,502,217 (95,8 72,756) (119,704,693) Total net position $ 76,903,631 46,923,765 74,525,463 68,479,134 151,429 ,094 115,402,899 Summary of Net Position
June 30, 2022 and 2021
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 outflows of resour ces exceeded liabilities and deferred inflows of re sources by $151,429,094 at June 30, 2022.
The largest portion of the City’s net position of $ 206,869,245 reflects its investment in capital asse ts (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; consequentl y, these assets are not available for future spending. Although the City’s investment in its capital assets is reporte d 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 usually are not used to liquidate these liabilities.
The second largest portion of the City’s net positi on of $40,432,605 represent resources that are subj ect to external restrictions on how they may be used. The remaining portion of the City’s net position is unr estricted and may be used to meet the City’s ongoing obligati ons to citizens and creditors. At June 30, 2022, un restricted net deficit was $95,872,756.
CITY OF ALHAMBRA
Management’s Discussion and Analysis
June 30, 2022
8 Summary of Changes in Net Position
For the Fiscal Years ended June 30, 2022 and 2021
Governmental Business-type
activities activities Total
2022 2021 2022 2021 2022 2021
Revenues:
Program revenues:
Charges for services $ 13,374,892 17,017,232 27,664,4 13 35,443,816 41,039,305 52,461,048 Operating grants and contributions 12,942,487 7,979, 528 228,632 171,632 13,171,119 8,151,160 Capital grants and contributions 7,344,310 4,002,815 69,999 — 7,414,309 4,002,815 General revenues 80,297,272 71,946,733 (268,985) 56,1 70 80,028,287 72,002,903 Total revenues 113,958,961 100,946,308 27,694,059 35 ,671,618 141,653,020 136,617,926 Expenses:
General government 4,406,807 2,100,020 — — 4,4 06,807 2,100,020 Public safety 49,041,823 59,203,389 — — 49,041 ,823 59,203,389 Public works 11,953,401 10,215,124 — — 11,953, 401 10,215,124 Housing, health, and community
development 8,340,153 10,288,135 — — 8,340,153 10,288,135 Culture and recreation 9,923,630 10,740,729 — — 9,923,630 10,740,729 Interest on long-term debt 384,640 648,865 — — 384,640 648,865 Water — — 15,824,242 17,708,184 15,824,242 17 ,708,184 Sewer and storm drain — — 5,349,641 5,321,402 5,349,641 5,321,402 Sanitation — — 319,653 10,231,848 319,653 10, 231,848 Golf course/clubhouse — — 82,835 559,277 82,83 5 559,277 Total expenses 84,050,454 93,196,262 21,576,371 33,8 20,711 105,626,825 127,016,973 Increase in net position before
transfers 29,908,507 7,750,046 6,117,688 1,850,907 3 6,026,195 9,600,953 Transfers in (out) 71,359 99,790 (71,359) (99,790) — — Increase in net position 29,979,866 7,849,836 6,046, 329 1,751,117 36,026,195 9,600,953 Net position, July 1 46,923,765 39,073,929 68,479,13 4 66,728,017 115,402,899 105,801,946 Net position, June 30 $ 76,903,631 46,923,765 74,525, 463 68,479,134 151,429,094 115,402,899
Governmental Activities. Governmental activities increased the City’s net position by $29,979,866.
Governmental Revenues. Governmental revenues increased by $13,012,653 or 12.9%. Sales and use tax revenues increased $3,905,012 due to easing of pand emic related restrictions and strong consumer spend ing.
Property taxes increased $2,015,413 due to proceeds from Successor Agency distribution and to continue d new development in the City and resale of residential p roperties. Additionally, the revenues from the Amer ican Rescue Plan Act increased $3,791,493 for project ex penses incurred and the City received new funding f rom Metropolitan Transportation Authority of $2,138,189 for street projects. There was also a decrease in Community Development Block Grant revenues of $1,41 2,744 due to timing of projects completed and vario us increases and decreases of other funding sources.
Governmental Expenses. Governmental expenses decreased by $9,145,808 or 9.8%. There are several reasons which account for this net decrease which included increases and decreases for various reasons. Signif icant decrease includes a decrease in pension and other p ost-employment benefits expense of $14,963,591 as a result of actuarial savings. The pension valuation for this information was conducted using a measurement date of June 30, 2021. In 2021, CalPERS reported a 21.3% investment net return, which created investment gains that reduced pension expense. However, the City anticipates the pension expense will increase next fiscal year as a result of investment losses in fiscal year 2021-22. Pension e xpense is reported in accordance with GASB standard s.
Offsetting these decreases was an increase for fund ing of $2,292,601 for other-post employment benefit pre-
CITY OF ALHAMBRA
Management’s Discussion and Analysis
June 30, 2022
9 funding contribution, an increase of $1,047,873 for Community Development Block Grant expenses, and an increase in expenses for pedestrian street improvements of $1,032,139 funded with county and federal grants.
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
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 fiscal year ending June 30, 2022
Charges for services
3%
Operating grants and
contributions
11%
Capital grants
and
contributions
6%
Property taxes
20%
Sales taxes
27%
Business license
2%
Utility users tax
4%
Other taxes
10%
Investment earnings
-1%
Other
16%
Revenues by Source - Governmental Activities
CITY OF ALHAMBRA
Management’s Discussion and Analysis
June 30, 2022
10 Business-type Activities. Business-type activities increased the City’s net position by $6,046,329.
Business-type activities had revenues and net assets sufficient to cover operations. Key elements of this net increase are as follows:
Sewer and Storm Drain Fund net position increased $ 1,915,844 with operating revenues increasing $285,780 primarily due to revenues increasing from additional dwelling unit construction, operating expenses decreasing $282,902 due to decrease in pen sion liability expense of $168,276, and expected increase in net position providing for the accumula tion of resources for future capital projects and expenses.
Sanitation Fund net position increased $687,907. Du ring this fiscal year operating revenues and operat ing expenses decreased significantly as all refuse coll ection service revenues and expenses will be receiv ed and incurred by outside contractor. The net positio n increased for various reasons including expenses decreasing for pension liability of $198,422 and unspent recycling revenues received.
Golf course/Clubhouse Fund net position increased $ 198,721 due to increasing golf course and clubhouse revenues as play increases and banquet facility reservations increase since Covid-19.
Another significant element of the net increase is a result of transfer made from General Fund to Inte rnal Service Funds which increased net position by $2.7 million.
$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 fiscal year ended June 30, 2022
Expenses Program Revenue
Charges for services,
97.84%
Investment earnings, -
1.55%
Other, 0.61%
Revenues by Source - Business-Type Activities
CITY OF ALHAMBRA
Management’s Discussion and Analysis
June 30, 2022
11 F
inancial 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 fiscal year ended June 30, 2022.
June 30, June 30, Amount Percentage
2022 2021 Increase Change
Fund Balance:
General Fund $ 34,803,761 33,285,858 1,517,903 4.56%
Housing Asset 10,932,444 11,482,368 (549,924) -4.79%
American Rescue Plan Act (169,003) — (169,003) 0.00%
Total Fund Balance $ 45,567,202 44,768,226 798,976 -0.23% The General Fund is the chief operating fund of the City. At the end of the current fiscal year, the fund balance was $34,803,761 which increased by $1,517,903 during the current fiscal year. Key factors for changes in the current fiscal year fund balance are as follows: sales and use tax revenues came in stronger than anticipated due to the easing of pandemic related restrictions and strong consumer spending and increased $4,768,612 and property taxes increased $1,819,021 primarily due to proceeds from Successor Agency distribution and to continued new development in the City and resale of residential properties. These revenues were offset by lower interest earnings of $662,627, contribution for OPEB prefunding of $2,292,601, and a transfer to the Self- Insurance Fund of $9,924,135.
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 $10,932,444 which decreased by $549,924 due to increase in development activities 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 revenues of $4,199,747 were recorded from the Act and $4,368,750 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 fiscal year ended June 30, 2022.
A mount Percentage
June 30, June 30, Increase Increase
2022 2021 (D ecrease) (D ecrease)
Net Position:
W ater Fund $ 32,270,330 32,268,139 2,191 0.01%
Sewer Fund 39,506,173 37,590,329 1,915,844 5.10%
Sanitation Fund (663,711) (1,351,618) 687,907 50.90%
Golf course/C lubhouse Fund 5,021,218 4,822,497 198,721 4.12% Total N et Position $ 76,134,010 73,329,347 2,804,663 60.12% Unrestricted Net Position:
W ater Fund $ (1,056,530) 719,454 (1,775,984) -246.85%
Sewer Fund 9,527,477 9,700,564 (173,087) -1.78%
Sanitation Fund (820,608) (1,471,670) 651,062 44.24%
Golf course/C lubhouse Fund (1,339,294) (1,595,918) 256,624 16.08% Total U nrestricted N et Position $ 6,311,045 7,352,430 (1,041,385) -188.32%
CITY OF ALHAMBRA
Management’s Discussion and Analysis
June 30, 2022
12 Enterprise Funds. Unrestricted net position of the enterprise funds totaled $6,311,045, while total net position was $76,134,010 at the end of the current fiscal ye ar. The total increase in net position for these fu nds was $2,804,663.
The Water Fund’s unrestricted net position of the W ater Fund decreased $1,775,984 during the current f iscal year.
This decrease was primarily due to an increase in n et investment in capital assets of $1,777,260 prima rily from increase in infrastructure of water main line assets.
The Sewer and Storm Drain Fund’s unrestricted net p osition decreased $173,087 during the current fisca l year.
This decrease was primarily due to an increase in n et investment in capital assets of $2,088,823 prima rily from increase in infrastructure including sewer main lin es, lift and pump station improvements, and net inc ome of $1,915,844 from factors addressed in the discussion of the City’s business-type activities.
The Sanitation Fund’s unrestricted net position inc reased $651,062 during the current fiscal year attr ibuted primarily from factors addressed in the discussion of the City’s business-type activities.
The Golf course/Clubhouse fund’s unrestricted net p osition increased $256,624 during the current fisca l year attributed primarily from factors addressed in the discussion of the City’s business-type activities.
General Fund Budgetary Highlights
In the General Fund, differences between the origin al budget and the final amended budget resulted in a net increase in appropriation of $10,699,746 (net of pr ior fiscal year carryover of available and encumber ed balances) and can be briefly summarized as follows:
$9,382,929 in increases allocated to various general government departments $5,256 in decreases allocated to the parks and recreation department $251,852 in increases allocated to the community development department $1,080,267 in increases allocated to public safety
$449,910 in increases allocated to public works
$459,956 in decreases allocated to the library department The increase in various general government departme nts of $9,382,929 included $115,693 for various mid -year budget adjustments for various unanticipated costs and other miscellaneous costs funded by available f und balance along with $50,500 for homeless program cos ts funded from a county grant, $2,292,601 for OPEB prefunding contribution, and $6,924,135 for transfer to Self-Insurance Fund to fund deficit. The decrease in parks and recreation department of $5,256 included $40,48 5 for summer lunch program funded by a federal gran t, $8,064 for Chamber of Commerce funding, and a reduc tion of $53,805 for various mid-year adjustments. T he increase of $251,852 in community development inclu ded $300,000 for state grant to update planning ser vices, $118,710 for additional planning contract services, and mid-year budget adjustments including departme nt reorganization reducing budget by $168,858. The inc rease of $1,080,267 in public safety included $706, 304 for federal homeland security grants, $390,021 for stat e public safety grants, and various mid-year budget adjustments decreasing budget by $16,058. The incre ase in public works of $449,910 included $300,000 f or elevator upgrade, $100,000 for water damage repairs , $66,229 for department reorganization, and a redu ction of $16,319 for various mid-year adjustments. The decrease in library department of $459,956 includes a decrease of $390,000 for part-time salary to be paid from the A merican Rescue Plan Act Fund, decrease of $89,338 f or organization restructure, along with an increase of $19,382 in grant revenues for books and equipment.
CITY OF ALHAMBRA
Management’s Discussion and Analysis
June 30, 2022
13 Also, in the General Fund, differences between the final amended budget and the actual amounts for rev enues, expenditures, and other financing sources and uses resulted in a net positive variance of $15,092,135. General fund revenues accounted for a positive variance of $6,697,476 resulting from many factors including positive variance of $2,206,606 for property tax revenue due to increased property values and sales and proceed s from Successor Agency distribution, $3,072,504 for sales tax revenue due to revenues for new sales tax meas ure more than projected, $939,225 for franchise taxes due to new franchise fees from refuse collection contract , and $711,971 for utility users tax from increased usage . There were also negative variances of $993,027 fo r unspent homeland security grants and $768,684 for investmen t losses. General Fund expenditures were under budg et by $8,388,032 primarily due to expenditures for police under budget by $3,117,011 as a result of many unf illed positions. Expenditures for building and planning u nder budget by $1,241,649 due to building related c ontract services under budget, and public safety capital ou tlay under budget by $1,371,993 due to various gran t funds awarded and not yet expended. There are various dep artments 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 $228,938,342 (net of accumulated depreciation of $135,661,987) as of June 30, 2022. This investment in capital assets includes land, buildings, improvemen ts other than building, infrastructure (roads, side walks, land held under easement, streetlights, etc.), and machinery and equipment.
Summary of Capital Assets
(Net of Accumulated Depreciation)
For the Fiscal Years Ended June 30, 2022 and 2021
Governmental Business-type
activities activities Total
2022 2021 2022 2021 2022 2021
Land $ 22,272,000 22,049,439 5,769,073 5,769,073 28,0 41,073 27,818,512 Buildings, structures, and improvements 52,174,175 53,684,471 10,383,253 10,697,334 62,557,428 64,381,805 Machinery and equipment 9,379,919 8,600,362 1,744,380 1,641,342 11,124,299 10,241,704 Utility systems — — 58,006,371 54,729,062 58,006,371 54,729,062 Infrastructure 61,226,271 58,676,626 — — 61,226,271 58,676,626 Construction in progress 3,358,960 556,246 4,623,940 6,972,818 7,982,900 7,529,064 Total $ 148,411,325 143,567,144 80,527,017 79,809,629 228,938,342 223,376,773
Additional information on the City’s capital assets can be found in notes to the basic financial state ments on pages 50 through 53 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 increased due to various s treet projects in process this fiscal year and expe cted to be completed in the next fiscal year.
Infrastructure additions and deletions included imp rovement and replacement of streets, sidewalks, all eys, curb and gutters, and trees.
CITY OF ALHAMBRA
Management’s Discussion and Analysis
June 30, 2022
14 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 lift and pump station improvements in process last fiscal year completed in the current fiscal year. Additional sewer lift a nd pump station improvements, and water main line projects to be completed next fiscal year.
Debt Administration. At the end of the current fiscal year, the City ha d total bonded debt outstanding of $19,575,000. Of this amount, $3,880,000 represents certificates of participation issued for various ca pital improvements including police facility, $5,515,000 represents lease revenue bonds for the construction of a parking structure, $2,725,000 represents revenue bo nds for water treatment plant, and $7,455,000 repre sents revenue bonds for sewer improvement projects. Addit ions to the City’s long-term debt include new capit al lease of $788,473 for new fire truck, a net increase in O PEB liability of $1,946,815 from increased actuaria l costs.
Deductions include a net decrease in benefits payable of $85,032, net decrease in pension liability of $55,058,434 due to actuarial savings, and a net decrease in out standing claims of $3,110,385 due to payments on ou tstanding claims and actuarial savings, and the repayment of outstanding principal totaling $4,259,613.
Sum m ary of O utstanding D ebt
For the Fiscal Y ears E nded June 30, 2022 and 2021
G overnm ental B usiness-type
activities activities T otal
2022 2021 2022 2021 2022 2021
B onded indebtedness:
C ertificates of participation $ 3,880,000 5,650,000 — — 3,880,000 5,650,000 L ease revenue bonds 5,515,000 5,665,000 — — 5,515,000 5,665,000 R evenue bonds — — 10,180,000 11,165,000 10,180,000 11,165,000 B ond prem ium (bond discount) (41,890) (43,857) 525,175 650,253 483,285 606,396 O ther long-term debt:
C apital lease obligations 1,741,099 2,045,163 — — 1,741,099 2,045,163 B enefits payable 3,055,646 3,126,137 410,124 424,665 3,465,770 3,550,802 Pension liability 87,589,592 137,264,481 10,156,847 15,540,392 97,746,439 152,804,873 O PEB liability 33,731,446 32,023,782 4,668,481 4,429,330 38,399,927 36,453,112 Self insurance claim s payable 15,435,928 18,546,313 — — 15,435,928 18,546,313 N otes and loans payable — 138,965 — — — 138,965 $ 150,906,821 204,415,984 25,940,627 32,209,640 176,847,448 236,625,624
Additional information on the City’s debt can be fo und in notes to the basic financial statements on p ages 55 through 78 of this report.
CITY OF ALHAMBRA
Management’s Discussion and Analysis
June 30, 2022
15 As of June 30, 2022 Standard & Poor’s credit market services has assigned a rating of “AA” to the City.
State statutes limit the amount of general obligati ons debt a governmental entity may issue to 15% of its total assessed valuation. The current debt limitation for the City is $404,962,812. The City currently has n o general obligation debt.
Next Year’s Budget
The fiscal year 2022-23 budget provides City progra ms at the same levels as pre-pandemic and sets a ro bust schedule of capital improvement projects. Revenues are conservatively forecast with modest growth. Cit y staff will continue its efforts to hold General Fund expe nditures flat, with the exception of CPI increases for contract services. The fiscal challenges the City continues to face are rising CalPERS and OPEB liabilities, rising 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 emphas ize 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 gene ral overview of the City’s finances for readers of the financial statements. Questions concerning any of the informa tion in this report or request for additional finan cial information should be addressed to the Director of Finance, 111 South First Street, Alhambra, CA 91801 .
16 This Page Intentionally Left Blank
City of Alhambra
Statement of Net Position
June 30, 2022
Governmental Business-type
Activities Activities Total
Assets and Deferred Outflows of Resources
Cash and investments $ 103,335,222 22,307,395 $ 125,642,617 $ Restricted cash and investments 1 567,428 567,429 Accounts receivable (net) 9,587,782 4,102,753 13,690,535 Notes receivable (net) 242,888 - 242,888 Loans receivable (net) 161,905 - 161,905 Internal balances 3,079,569 (3,079,569) - Inventories 104,825 822,583 927,408 Prepaid items 36,573 32,425 68,998 Capital assets not being depreciated 25,630,960 10,393,013 36,023,973 Capital assets, net of accumulated depreciation 122,780,365 70,134,004 192,914,369 Total assets 264,960,090 105,280,032 370,240,122 Deferred outflow of resources:
Deferred amounts from net pensions 18,851,846 2,172,871 21,024,717 Deferred amounts from total OPEB 10,569,559 1,478,155 12,047,714 Total deferred outflow of resources 29,421,405 3,651,026 33,072,431 Liabilities and Deferred Inflows of Resources
Current liabilities:
Accounts payable 3,844,075 2,942,421 6,786,496 Accrued liabilities 3,727,298 - 3,727,298 Bond interest payable 192,886 68,238 261,124 Deposits 1,398,353 425,865 1,824,218 Unearned revenues 16,902,664 296,408 17,199,072 Retentions payable 281,836 245,649 527,485 Compensated absences due within one year 660,530 88,656 749,186 Self-insurance liabilities due within one year 3,244,860 - 3,244,860 Long-term debt due within one year 2,972,395 1,155,079 4,127,474 Total current liabilities 33,224,897 5,222,316 38,447,213 Noncurrent liabilities:
Net pension liability 87,589,592 10,156,847 97,746,439 OPEB liability 33,731,446 4,668,481 38,399,927 Compensated absences due in more than one year 2,395,116 321,468 2,716,584 Self-insurance liabilities due in more than one year 12,191,068 - 12,191,068 Long-term debt due in more than one year 8,121,814 9,550,096 17,671,910 Total noncurrent liabilities 144,029,036 24,696,892 168,725,928 Total liabilities 177,253,933 29,919,208 207,173,141 Deferred inflow of resources:
Deferred amounts from net pensions 36,935,765 4,043,438 40,979,203 Deferred amounts from total OPEB 3,018,453 442,949 3,461,402 Deferred amount from bond refunding 269,713 - 269,713 Total deferred inflow of resources 40,223,931 4,486,387 44,710,318 Net Position
Net assets:
Net investment in capital assets 137,047,403 69,821,842 206,869,245 Restricted for:
Law enforcement 665,370 - 665,370 Streets and transportation 26,674,762 - 26,674,762 Air quality 333,058 - 333,058 Community development 9,115 - 9,115 Police facility 213,303 - 213,303 Water quality 1,603,430 - 1,603,430 Debt service - 1,123 1,123 Low-income housing 10,932,444 - 10,932,444 Total restricted 40,431,482 1,123 40,432,605 Unrestricted (100,575,254) 4,702,498 (95,872,756) Total net position $ 76,903,631 74,525,463 151,429,094 See accompanying notes to the financial statements
17 CITY OF ALHAMBRA
Statement of Activities
For the Fiscal Year Ended June 30, 2022
Operating Capital
Charges for Grants and Grants and
Expenses Services Contributions Contributions
Functions/programs primary government:
Governmental activities:
General government $ 4,406,807 1,670,666 (33,356) - Public safety 49,041,823 5,249,419 424,660 - Public works 11,953,401 850,704 2,702,915 7,344,310 Housing, health, and community development 8,340,153 4,535,125 9,590,909 - Culture and recreation 9,923,630 1,068,978 257,359 - Interest on long-term debt 384,640 - - - Total governmental activities 84,050,454 13,374,892 12,942,487 7,344,310 Business-Type Activities:
Water 15,824,242 16,918,978 207,026 - Sewer and Storm Drain 5,349,641 8,092,422 - 69,999 Sanitation 319,653 1,853,621 21,606 - Golf Course/Clubhouse 82,835 799,392 - - Total Business-Type Activities 21,576,371 27,664,413 228,632 69,999 Total $ 105,626,825 41,039,305 13,171,119 7,414,309 General revenues:
Property taxes and assessments
Sales tax
Utility users tax
Franchise tax
Business license tax
Other taxes
Unrestricted intergovernmental
Unrestricted investment earnings
Miscellaneous
Gain on sales of capital assets
Transfers
Total general revenues and transfers
Change in net position
Net position - beginning of fiscal year
Net position - end of fiscal year
See accompanying notes to the financial statements
Program Revenues
18 Governmental Business-Type
Activities Activities Total
$ (2,769,497) - (2,769,497)
(43,367,744) - (43,367,744)
(1,055,472) - (1,055,472)
5,785,881 - 5,785,881
(8,597,293) - (8,597,293)
(384,640) - (384,640)
(50,388,765) - (50,388,765)
- 1,301,762 1,301,762
- 2,812,780 2,812,780
- 1,555,574 1,555,574
- 716,557 716,557
- 6,386,673 6,386,673
(50,388,765) 6,386,673 (44,002,092)
23,972,751 - 23,972,751
31,016,504 - 31,016,504
4,311,971 - 4,311,971
2,439,225 - 2,439,225
1,733,544 - 1,733,544
2,235,100 - 2,235,100
11,247,496 - 11,247,496
(1,300,463) (443,220) (1,743,683)
4,616,646 161,285 4,777,931
24,498 12,950 37,448
71,359 (71,359) -
80,368,631 (340,344) 80,028,287
29,979,866 6,046,329 36,026,195
46,923,765 68,479,134 115,402,899
$ 76,903,631 74,525,463 151,429,094
Net (Expenses) Revenues and
Changes in Net Assets
19 CITY OF ALHAMBRA
Balance Sheet – Governmental Funds
June 30, 2022
American Nonmajor Totals
Housing Rescue Plan Governmental Governmental
General Asset Act Funds Funds
Cash and investments $ 31,650,454 11,047,840 17,211,618 32,068,377 91,978,289 Restricted cash and investments - - - 1 1 Receivables:
Accounts 8,008,750 - 17,032 1,489,458 9,515,240 Notes 242,888 2,598,991 - 1,500,082 4,341,961 Allowance - (2,598,991) - (1,500,082) (4,099,073) Loans - - - 7,580,488 7,580,488 Allowance - - - (7,418,583) (7,418,583) Due from other funds 1,872,574 - - - 1,872,574 Inventories 104,825 - - - 104,825 Prepaid items 21,374 - - - 21,374 Total assets $ 41,900,865 11,047,840 17,228,650 33,719,741 103,897,096 Liabilities, Deferred Inflows of Resources, and Fund Balances (Deficits) Liabilities:
Accounts payable $ 1,438,210 100,396 471,023 1,648,607 3,658,236 Accrued liabilities 3,727,298 - - - 3,727,298 Due to other funds - - - 379,040 379,040 Deposits 1,383,353 15,000 - - 1,398,353 Retentions payable - - 23,966 257,870 281,836 Unearned revenues - - 16,902,664 - 16,902,664 Total liabilities 6,548,861 115,396 17,397,653 2,285,517 26,347,427 Deferred inflows of resources:
Unavailable revenues 548,243 - - 818,934 1,367,177 Fund balances:
Nonspendable:
Prepaid items 21,374 - - - 21,374 Notes receivable 242,888 - - - 242,888 Inventories 104,825 - - - 104,825 Restricted for:
Law enforcement 118,800 - - 425,956 544,756 Streets and transportation - - - 26,653,793 26,653,793 Air quality - - - 304,688 304,688 Community development - - - 9,114 9,114 Police facility - - - 213,303 213,303 Water quality - - - 1,603,430 1,603,430 Debt service - - - 1 1 Low income housing - 10,932,444 - - 10,932,444 Committed for:
Emergency reserve 10,685,008 - - - 10,685,008 Building and facility reserve 3,000,000 - - - 3,000,000 Equipment reserve 3,000,000 - - - 3,000,000 Art in public places 521,432 - - - 521,432 Assigned to:
Continuing appropriations 2,155,990 - - - 2,155,990 Various capital improvements 4,421,184 - - - 4,421,184 Lease commitments 1,072,697 - - - 1,072,697 Capital projects - - - 1,850,434 1,850,434 Self Insurance funding 3,000,000 - - - 3,000,000 Compensated absences funding 1,260,128 - - - 1,260,128 OPEB liability funding 3,680,778 - - - 3,680,778 Unassigned 1,518,657 - (169,003) (445,429) 904,225 Total fund balances (deficits) 34,803,761 10,932,444 (169,003) 30,615,290 76,182,492 Total liabilities, deferred inflows
of resources, and fund balances $ 41,900,865 11,047,840 17,228,650 33,719,741 103,897,096 See accompanying notes to the financial statements
Special Revenue Funds
Assets
20 CITY OF ALHAMBRA
Balance Sheet – Governmental Funds
Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position:
June 30, 2022
Fund balances of governmental funds $ 76,182,492
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 145,683,010
Long-term liabilities are not due and payable in the current period, and therefore, are not reported in governmental funds. (10,402,843)
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 (192,886) Governmental funds report issuance costs, premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of net position (269,713) 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 assets and liabilities of the internal service funds are included in governmental activities in the statement of net position. (5,106,830) Certain receivables recorded as unavailable revenue in governmental funds are recognized as revenue on the full accrual basis, and therefore, are not reported as deferred revenues in the statement of net position. 1,367,177 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 and OPEB are only reported in the Statement of Net Position as the changes in these amount effects only the government-wide statements for governmental activities:
Net pension liability (86,504,161)
Deferred outflow of resources from pensions 18,616,968
Deferred inflow of resources from pensions (36,455,146) OPEB liability (33,518,273)
Deferred outflow of resources from OPEB 10,502,063
Deferred inflow of resources from OPEB (2,998,227)
Net position of governmental activities $ 76,903,631
See accompanying notes to the financial statements
21 CITY OF ALHAMBRA
Statement of Revenues, Expenditures, and Changes in Fund Balances (Deficits) - Governmental Funds For the Fiscal Year Ended June 30, 2022
American Nonmajor Totals
Housing Rescue Plan Governmental Governmental
General Asset Act Funds Funds
Revenues:
Taxes and assessments $ 59,127,210 - - 6,701,885 65,829,095 Licenses and permits 4,000,207 - - - 4,000,207 Revenues from other agencies 11,770,141 - 4,368,749 15,406,299 31,545,189 Use of money and property (301,872) (218,906) (169,002) (578,475) (1,268,255) Charges for services 6,839,451 - - 27,207 6,866,658 Fines and forfeitures 2,353,910 - - - 2,353,910 Other 2,543,829 - - 104,535 2,648,364 Total revenues 86,332,876 (218,906) 4,199,747 21,661,451 111,975,168 Expenditures:
Current:
General government 2,701,195 - 1,866,773 - 4,567,968 Public safety 53,303,730 - 519,309 1,283,894 55,106,933 Public works 1,039,798 - 111,091 4,875,337 6,026,226 Housing, health, and community development 4,640,094 331,018 56,101 3,554,024 8,581,237 Culture and recreation 9,549,202 - 413,346 46,291 10,008,839 Capital outlay 680,633 - 1,402,130 9,356,913 11,439,676 Debt service:
Principal retirement 156,258 - - 2,898,137 3,054,395 Interest and fiscal charges 5,442 - - 682,215 687,657 Total expenditures 72,076,352 331,018 4,368,750 22,696,811 99,472,931 Excess (deficiency) of revenues over
expenditures 14,256,524 (549,924) (169,003) (1,035,360) 12,502,237 Other financing sources (uses):
Transfers in 359,369 - - 5,474,951 5,834,320 Transfers out (13,097,990) - - (2,589,106) (15,687,096) Total other financing sources (uses) (12,738,621) - - 2,885,845 (9,852,776) Net change in fund balances 1,517,903 (549,924) (169,003) 1,850,485 2,649,461 Fund balances at July 1 33,285,858 11,482,368 - 28,764,805 73,533,031 Fund balances (deficits) at June 30 $ 34,803,761 10,932,444 (169,003) 30,615,290 76,182,492 See accompanying notes to the financial statements
Special Revenue Funds
22 CITY OF ALHAMBRA
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to Statement of Activities For the Fiscal Year Ended June 30, 2022
Net change in fund balances - governmental funds 2,649,461 $ In governmental funds, the costs of capital assets are reported as expenditures in the period when the assets are acquired. In the statement of activities, costs of capital assets are allocated over their estimated useful lives and their lease terms as depreciation expense. The difference between capital outlay expenditures and depreciation expense for the period is:
Expenditures for capital outlay 8,720,309 $
Depreciation expense (5,778,521)
Capital assets transfer from Successor Agency Private Purpose Trust Fund, net 65,929 3,007,717 In governmental funds, donated capital assets are not reported because they do not affect current financial resources In the government-wide statements, donated capital assets are reported as revenue and as increasesto capital assets, at their fair market value on the date of donation. The fair market value of capital assets donated was: 1,572,107 In governmental funds, the entire proceeds from disposal of capital assets are reported as revenue In the statement of activities, only the resulting gain or loss is reported. The difference between the proceeds from disposal of capital assets and the resulting gain or loss is: (67,124) 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 assets. 3,054,395 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 assets. Also, governmental funds report issuance costs, 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. 98,412 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. 8,102,733 Certain receivables and other items recorded as deferred revenue in governmental funds are recognized as revenue on the full accrual basis, and therefore, are reported as revenues in the statement of activities. 141,796 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 (137,728) 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 11,329,508 Change in net assets of governmental activities 29,979,866 $ See accompanying notes to the financial statements
23 CITY OF ALHAMBRA
Statement of Net Position
Proprietary Funds
June 30, 2022
Governmental
Business-type activities-Enterprise funds Activities -
Internal
Sewer and Golf Course/ Service
Assets Water Storm Drain Sanitation Clubhouse Total Funds Current assets:
Cash and investments $ 10,043,714 10,854,356 1,409,325 - 22,307,395 11,356,933 Restricted cash and investments 426,880 140,548 - - 567,428 - Accounts receivable 3,036,823 806,887 103,002 158,571 4,105,283 72,542 Allowance (2,530) - - - (2,530) - Inventories 822,583 - - - 822,583 - Prepaid items 31,182 - 1,243 - 32,425 15,199 Total current assets 14,358,652 11,801,791 1,513,570 158,571 27,832,584 11,444,674 Noncurrent assets:
Capital assets:
Land 1,923,817 169,595 - 3,675,661 5,769,073 237,950 Construction in progress 1,213,168 3,410,772 - - 4,623,940 - Building, structures, and improvements 43,740,403 37,166,542 24,894 8,060,999 88,992,838 43,162 Machinery and equipment 2,942,884 1,978,995 532,460 272,197 5,726,536 7,657,341 Less accumulated depreciation (13,469,393) (5,067,175) (400,457) (5,648,345) (24,585,370) (5,210,138) Total capital assets, net of accumulated
depreciation 36,350,879 37,658,729 156,897 6,360,512 80,527,017 2,728,315 Total assets 50,709,531 49,460,520 1,670,467 6,519,083 108,359,601 14,172,989 Deferred outflow of resources:
Deferred amount from net pensions 1,611,595 257,640 303,636 - 2,172,871 67,496 Deferred amount from total OPEB 1,120,428 156,365 201,362 - 1,478,155 234,878 Total deferred outflows 2,732,023 414,005 504,998 - 3,651,026 302,374 Liabilities
Current liabilities:
Accounts payable 2,668,284 230,713 16,581 26,843 2,942,421 185,839 Interest payable 45,417 22,821 - - 68,238 - Due to other funds - - - 1,471,022 1,471,022 22,512 Deposits 425,865 - - - 425,865 - Retentions payable 71,532 174,117 - - 245,649 - Unearned revenues 173,816 - 122,592 - 296,408 - Current portion - compensated absences 72,873 9,569 6,214 - 88,656 660,530 Current portion - capital leases payable - - - - - 107,461 Current portion – revenue bonds 977,513 177,566 - - 1,155,079 - Current portion – self insurance claims payable - - - - - 3,244,860 Total current liabilities 4,435,300 614,786 145,387 1,497,865 6,693,338 4,221,202 Long-term liabilities (net of current portion)
Compensated absences 264,240 34,696 22,532 - 321,468 2,395,116 Capital leases payable - - - - - 583,905 Revenue bonds 2,047,521 7,502,575 - - 9,550,096 - Pension liability 7,526,171 1,207,567 1,423,109 - 10,156,847 1,085,431 OPEB liability 3,538,669 493,849 635,963 - 4,668,481 213,173 Self insurance claims payable - - - - - 12,191,068 Total long-term liabilities 13,376,601 9,238,687 2,081,604 - 24,696,892 16,468,693 Total liabilities 17,811,901 9,853,473 2,226,991 1,497,865 31,390,230 20,689,895 Deferred inflows of resources:
Deferred amount from net pensions 3,023,572 468,022 551,844 - 4,043,438 480,619 Deferred amount from total OPEB 335,751 46,857 60,341 - 442,949 20,226 Total deferred inflows 3,359,323 514,879 612,185 - 4,486,387 500,845 Net position:
Net investment in capital assets 33,325,845 29,978,588 156,897 6,360,512 69,821,842 2,036,949 Restricted for debt service 1,015 108 - - 1,123 - Unrestricted (1,056,530) 9,527,477 (820,608) (1,339,294) 6,311,045 (8,752,326) Total net position $ 32,270,330 39,506,173 (663,711) 5,021,218 76,134,010 (6,715,377) Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds (1,608,547) Net position of business-type activities $ 74,525,463
See accompanying notes to the financial statements
24 CITY OF ALHAMBRA
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
For the Fiscal Year Ended June 30, 2022
Governmental
Business-type activities-Enterprise funds Activities -
Internal
Sewer and Golf Course/ Service
Water Storm Drain Sanitation Clubhouse Total Funds
Operating revenues:
Charges for services $ 16,918,978 8,092,422 1,853,621 799,392 27,664,413 2,267,660 Self-insurance/compensated absences contributions - - - - - 12,592,548 Other 158,111 - 3,174 - 161,285 - Total operating revenues 17,077,089 8,092,422 1,856,795 799,392 27,825,698 14,860,208 Operating expenses:
Purchase of water 3,598,887 - - - 3,598,887 - Other water production 504,467 - - - 504,467 - Water pumping, transmission and distribution 2,987,320 - - - 2,987,320 - General and administrative 8,720,542 - - - 8,720,542 - Water quality and environmental 142,624 - - - 142,624 - Water conservation 22,541 - - - 22,541 - Sewer and storm maintenance - 3,482,954 - - 3,482,954 - Sanitation - - 938,756 - 938,756 - Recycling - - 201,371 - 201,371 - Golf course - - - 190,895 190,895 - Golf course clubhouse - - - 137,048 137,048 - Claims and compensated absences expense - - - - - 11,207,027 Vehicle expense - - - - - 1,719,819 Depreciation and amortization 741,108 529,367 22,092 201,369 1,493,936 458,051 Total operating expenses 16,717,489 4,012,321 1,162,219 529,312 22,421,341 13,384,897 Operating income 359,600 4,080,101 694,576 270,080 5,404,357 1,475,311 Nonoperating revenues (expenses):
Intergovernmental 207,026 69,999 21,606 - 298,631 - Interest income (197,840) (214,977) (30,403) - (443,220) (243,378) Interest expense (51,237) (268,623) - - (319,860) (29,610) Gain (loss) on disposal of equipment 10,822 (514,939) 2,128 - (501,989) 30,244 Other income - - - - - 187,697 Other expense (326,180) (1,235,717) - - (1,561,897) - Total nonoperating revenues (expenses) (357,409) (2,164,257) (6,669) - (2,528,335) (55,047) Net income before transfers and capital
contributions 2,191 1,915,844 687,907 270,080 2,876,022 1,420,264 Transfers in - - - - - 9,924,135 Transfers out - - - (71,359) (71,359) - Net income 2,191 1,915,844 687,907 198,721 2,804,663 11,344,399 Net position at July 1 32,268,139 37,590,329 (1,351,618) 4,822,497 (18,059,776) Net position at June 30 $ 32,270,330 39,506,173 (663,711) 5,021,218 (6,715,377) Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds 3,241,666 Change in net position of business-type activities $ 6,046,329 See accompanying notes to the financial statements
25 CITY OF ALHAMBRA
Combining Statement of Cash Flows
Proprietary Funds
For the Fiscal Year Ended June 30, 2022
Governmental
Business-type activities-Enterprise funds Activities -
Internal
Sewer and Golf Course/ Service
Water Storm Drain Sanitation Clubhouse Total Funds
Cash flows from operating activities:
Cash received from customers $ 18,835,622 8,086,192 1,910,911 653,981 29,486,706 14,899,673 Cash paid for insurance premiums and self-insurance claims - - - - - (13,539,721) Cash paid to suppliers for goods and services (16,350,021) (4,647,562) (1,837,869) (366,182) (23,201,634) (1,232,049) Cash paid to employees for services (966,501) (144,453) (154,498) - (1,265,452) (1,596,661) Other operating cash received - - - - - 187,697 Net cash provided by (used in) operating activities 1,519,100 3,294,177 (81,456) 287,799 5,019,620 (1,281,061) Cash flows from noncapital financing activities:
Cash paid on loans from other funds - - - (72,974) (72,974) (5,648,620) Transfers from other funds - - - - - 9,924,135 Transfers to other funds - - - (71,359) (71,359) - Intergovernmental revenues 207,026 69,999 21,606 - 298,631 - Net cash provided by (used in) noncapital financing
activities 207,026 69,999 21,606 (144,333) 154,298 4,275,515 Cash flows from capital and related financing activities:
Acquisitions and construction of capital assets (972,976) (1,555,036) (58,937) (143,466) (2,730,415) (795,098) Capital contribution (326,180) (1,235,717) - - (1,561,897) - Proceeds from sale of capital assets 14,974 - 2,128 - 17,102 35,810 Proceeds from capital leases - - - - - 788,473 Principal paid on revenue bonds and capital lease
obligations (825,000) (160,000) - - (985,000) (97,107) Interest paid on certificates of participation and capital lease obligations (177,500) (281,855) - - (459,355) (29,610) Net cash used in capital and related financing activities (2,286,682) (3,232,608) (56,809) (143,466) (5,719,565) (97,532) Cash flows from investing activities:
Interest received (197,840) (214,977) (30,403) - (443,220) (243,378) Net cash provided (used) by investing activities (197,840) (214,977) (30,403) - (443,220) (243,378) Net increase (decrease) in cash and cash equivalents (758,396) (83,409) (147,062) - (988,867) 2,653,544 Cash and cash equivalents at July 1 11,228,990 11,078,313 1,556,387 - 23,863,690 8,703,389 Cash and cash equivalents at June 30 $ 10,470,594 10,994,904 1,409,325 - 22,874,823 11,356,933 Cash and investments $ 10,043,714 10,854,356 1,409,325 - 22,307,395 11,356,933 Restricted cash and investments 426,880 140,548 - - 567,428 - Total cash and investments $ 10,470,594 10,994,904 1,409,325 - 22,874,823 11,356,933 Noncash investing, capital, and financing activities:
Increase (decrease) in fair value of investments $ (258,360) (268,306) (35,903) - (562,569) (280,587) 26 CITY OF ALHAMBRA
Combining Statement of Cash Flows
Proprietary Funds
For the Fiscal Year Ended June 30, 2022
Governmental
Business-type activities-Enterprise funds Activities -
Internal
Sewer and Golf Course/ Service
Water Storm Drain Sanitation Clubhouse Total Funds
Reconciliation of operating income to net cash provided (used) by operating activities:
Operating income $ 359,600 4,080,101 694,576 270,080 5,404,357 1,475,311 Adjustments to reconcile operating income to net cash
provided by (used in) operating activities:
Depreciation and amortization 741,108 529,367 22,092 201,369 1,493,936 458,051 (Increase) decrease in accounts receivable 1,587,838 (6,230) (68,476) (145,411) 1,367,721 39,465 (Increase) decrease in inventories (177,626) - - - (177,626) - (Increase) decrease in prepaid items 947 - (1,243) - (296) (9,216) Increase (decrease) in accounts payable (181,893) (1,059,349) (696,499) (38,239) (1,975,980) (97,709) Increase (decrease) in deposits (3,121) - - - (3,121) - Increase (decrease) in retentions payable (15,068) (105,259) - - (120,327) - Increase (decrease) in unearned revenues 173,816 - 122,592 - 296,408 - Increase (decrease) in compensated absences (26,837) (1,779) 14,075 - (14,541) (70,491) Increase (decrease) in pension liability (4,032,266) (620,080) (731,199) - (5,383,545) (651,585) Increase (decrease) in OPEB liability 181,275 25,298 32,578 - 239,151 10,920 Increase (decrease) in self-insurance claims - - - - - (3,110,385) (Increase) decrease in deferred outflows 192,990 33,247 37,417 - 263,654 28,257 Increase (decrease) in deferred inflows 2,718,337 418,861 492,631 - 3,629,829 458,624 Other operating cash received - - - - - 187,697 Other operating cash paid - - - - - - Total adjustments 1,159,500 (785,924) (776,032) 17,719 (384,737) (2,756,372) Net cash provided by (used in) operating activities $ 1,519,100 3,294,177 (81,456) 287,799 5,019,620 (1,281,061) See accompanying notes to the financial statements
27 CITY OF ALHAMBRA
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2022
RDA
Successor Agency
Private Purpose
Assets Trust Fund
Note receivable $ 2,000,000
Allowance (2,000,000)
Total assets and other debits $ -
Net position:
Held in trust for the retirement of obligations of the former Alhambra Redevelopment Agency $ -
See accompanying notes to the financial statements
28 CITY OF ALHAMBRA
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Fiscal Year Ended June 30, 2022
RDA
Sucessor Agency
Private Purpose
Trust Fund
Additions:
Use of money and property $ 106
Total additions 106
Deductions:
Other expense 375,571
Interest expense (30,722)
Depreciation and amortization 26,372
Total deductions 371,221
Change in net position (371,115)
Net position - beginning of fiscal year 371,115
Net position - end of fiscal year $ -
See accompanying notes to the financial statements
29 This Page Intentionally Left Blank
30 Notes to Financial Statements
CITY OF ALHAMBRA
Notes to Basic Financial Statement
June 30, 2022
31 І Summary of Significant Accounting Policies
The City of Alhambra (City), incorporated in 1903, is a Charter City that operates under a Council-Cit y 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 Uni ted States of America, the accompanying basic financial statements present the City (the primary g overnment) and its component units. The component units discussed below are included in the City’s re porting entity because of the significance of their operational and financial relationships with the Ci ty. 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 the City Council members. The Alhambra Parking A uthority 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 parki ng for the business community. The activities of th e Authority exclusively benefit the City. The City ha s operational responsibility for the Authority. The financial transactions of the Authority are reporte d in the accompanying basic financial statements wi thin 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 the City Council memb ers. 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 Municipa l golf course. As of June 30, 2022, there were no financial transactions to be reported in the accomp anying basic financial statements. Separate financi al statements are not issued.
The Alhambra Capital Improvements Corporation and the A lhambra Public Financing Corporation are governed by a five-member board composed of the City Council members. The Alhambra Capital Improvements Corporation issued $27,000,000 Certifi cates 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 purp ose of providing a financing mechanism for capital project s 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 the City Council members. The Fin ancing Authority issued $8,005,000 wastewater revenue bonds on September 5, 2018. Although a sepa rate legal entity from the City, it is reported as if it was part of the City because of its purpose of prov iding a financing mechanism for capital projects fo r the City. The financial transactions of the Authority a re 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 Redevelopm ent Agency was created in 2012 to serve as the custodian for the assets and to wind down the a ffairs of the former Redevelopment Agency. Based on the nature of Successor agency’s custodial role, it is reported in a fiduciary private-purpose trust fund.
CITY OF ALHAMBRA
Notes to Basic Financial Statement
June 30, 2022
32 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 pri mary government and its component units. Fiduciary activities are excluded. As a general rule, the eff ect 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 representin g balances between the governmental activities and the business-type activities, which are presented as in ternal balances and eliminated in the total governm ent column. In the statement of activities, internal se rvice fund transactions have been eliminated; howev er, 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 activ ities, 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 di stinguish functions of the City that are principall y 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 (busines s-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 giv en function are offset by program revenues. Direct exp enses 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 o r applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a g iven function or segment and 2) grants and contributions, including special assessments that a re restricted to meeting the operational or capital requirements of a particular function. Taxes and ot her 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 i n 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 report ed using the economic resources measurement focus and the accrual basis of accounting. Under the eco nomic resources measurement focus, all assets and liabilities (whether current or non-current) associ ated with their activity are included on their bala nce sheets. Operating statements present increases (re venues) and decreases (expenses) in total net posit ion.
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.
CITY OF ALHAMBRA
Notes to Basic Financial Statement
June 30, 2022
33 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 mea surable and available to finance operations during the current year. The term “available” is interpret ed 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 regard s property taxes, sales taxes, and other taxes collected by other governmental entities, but not yet remitted to the City, various billings for services rendered, a nd revenues from the use of money and property, as susceptible to accrual.
Under the modified-accrual basis of accounting, exp enditures are generally recognized when the related fund liability is incurred as under accrual account ing. However, debt service expenditures as well as expenditures related to compensated absences and cl aims (including workers’ compensation) and judgments are recorded only when payment is due. Ge neral capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of lon g-term debt and capital leases are reported as othe r financing sources.
Proprietary funds are accounted for on a flow of ec onomic 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 an d expenses from non-operating items. Operating revenues and expenses generally result from providi ng services and producing and delivering goods in connection with a proprietary fund’s principal ongo ing operations. The principal operating revenues of the Enterprise Funds and of the City’s Internal Service Funds are charges to customers for sales and servi ces.
Operating expenses for Enterprise Funds and Interna l Service Funds include the cost of sales and servi ces, administrative expenses, and depreciation on capita l assets. All revenues and expenses not meeting thi s definition are reported as non-operating revenues and expenses.
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 service ar e accounted for in this fund including, but not limit ed to, operations, maintenance, capital improvements, and depreciation.
Sanitation Fund – It is used to account for the provision of sanit ation, rubbish collection, and recycling services to the residents of the City. Al l activities necessary to provide this service are accounted for in this fund including, but not limited to, operations, contract costs, and depreciation.
CITY OF ALHAMBRA
Notes to Basic Financial Statement
June 30, 2022
34 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 prov ide this service are accounted for in this fund including, but not limited to, operations, maintena nce, 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 re venue sources that are legally restricted or otherwise designated for specific purposes. Debt Service Fund s – are used to account for the collections, and pa yment of, resources used to repay long-term debt and related interest.
Capital Projects Fund s – are used to account for financial resources use d for the acquisition or construction of major capital facilities.
The City reports Internal Service Funds, which acco unt 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 co lumn 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 conso lidated into the governmental and business type act ivities columns of the government-wide statement of net position.
Additionally, the City reports Fiduciary Fund Finan cial Statements (Private Purpose Trust Fund) which account for the non-housing related activities of t he Successor Agency to the Alhambra Redevelopment Agency. Private-Purpose Trust Funds account for res ources 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 dep osit account by the participating funds. Accordingl y, the City has defined, for purposes of the preparati on of its statements of cash flows, cash and cash equivalents as demand deposits, plus all investment s maintained in the cash management pool, regardles s of maturity period.
Interest and dividend income, realized gains and lo sses, and changes in fair value of investments aris ing from pooled cash and investments are normally appor tioned to the participating funds based on the relationship of their respective monthly cash balan ces to the total pooled cash and investments, howev er the cash balances, of the Golf Course/Clubhouse, Ca pital Outlay, Health Insurance, and Public works Maintenance funds are assigned directly to the General Fund.
The City’s investments are stated at fair value. Fa ir value is determined based upon market closing pr ices 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 value of mutual fu nds, government-sponsored investment pools, and other si milar investments is stated at share value, or appropriate allocation of fair value of the pool, i f separately reported. Certain money market investm ents with initial maturities at the time of purchase of less than one year are recorded at cost. The calcul ation of realized gains and losses is independent of the cal culation of the net increase or decrease in fair va lue of investments. Realized gains and losses on investmen ts that had been held in more than one fiscal year and sold in the current fiscal year may have been recog nized as an increase or a decrease in fair value of investments reported in a prior fiscal year.
CITY OF ALHAMBRA
Notes to Basic Financial Statement
June 30, 2022
35 E. Receivables and Payables
Activity between funds that are representative of l ending/borrowing arrangements outstanding at the en d 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 ot her outstanding balances between funds are reported as interfund receivables/interfund payables. Any residual balances outstanding between the governmental activ ities 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 t o indicate that they are not available for appropri ation and are not expendable available financial resources or restricted.
All accounts, notes, and loans receivable are shown net of an allowance for uncollectible accounts and estimated refunds due. As of June 30, 2022, the allowance for uncollectible accounts for governmental and business-type activities is $11,517,656 and $2,530, respectively.
F. Inventories
Inventories of the Enterprise Funds, consisting pri marily 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. Inv entory is recorded as an expenditure at the time individual items are consumed.
G. Prepaid Items
Certain payments to vendors reflect costs applicabl e to future accounting periods and are recorded as prepaid assets. The City utilizes the allocation m ethod to record its prepaids. The prepaid assets r ecorded in the Governmental Funds do not reflect current appropriable resources and, thus, an equivalent portion of fund balance is nonspendable.
H. Capital Assets
Capital assets, which include land, buildings and i mprovements, equipment, and infrastructure assets (e.g., roads, sidewalks, traffic lights and signals, stree t lights, and similar items), are reported in the a pplicable governmental or business-type activities columns in the governmental-wide financial statements. Capita l assets are defined by the City as assets with an in itial individual cost of $5,000 or more and an esti mated 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 ext end assets lives is not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed.
Capital assets of the City are depreciated using a straight-line method over the following estimated u seful 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
CITY OF ALHAMBRA
Notes to Basic Financial Statement
June 30, 2022
36 I. Compensated Absences
It is the policy of the City to pay accumulated vac ation, holiday, compensatory time and vested sick l eave benefits to employees upon retirement or terminatio n of employment. Benefits accumulated will vary depending upon the employee’s bargaining unit. All vacation, holiday, compensatory time, and sick leav e are accrued when incurred in the government-wide an d proprietary fund financial statements. A liabilit y is reported in the governmental funds only if they hav e 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 vacati on pay when they terminate employment for any reason.
Employees may accumulate sick leave without limitat ion as to the number of hours. Accumulated sick leave is paid upon retirement for up to a maximum o f 25 days of sick leave provided the employee has accumulated 100 days of sick leave, 15 years of ser vice 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 pro prietary funds financial statements, net position i s reported in three categories: net investment in cap ital assets; restricted net position; and unrestric ted net position. Net investment in capital assets represen t capital assets less accumulated depreciation and reduced by outstanding balances of any bonds, mortg ages, notes, or other liabilities that are attribut able to the acquisition, construction, or improvement of th ose assets. Net investment in capital assets does n ot include the unspent proceeds of capital debt. Restr icted net position represents net position restrict ed by parties outside of the City (such as creditors, gra ntors, 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 t o use restricted resources first, then unrestricted resources as they are needed.
Fund balances are reported in accordance with Gover nmental Accounting Standards Board Statement No. 54, “Fund Balance Reporting and Governmental Fund T ype 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) le gally 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. Committed Fund Balance – This classification includes amounts that can be used only for the specific purposes determined by a formal action (or dinance) of the government’s highest level of decision-making authority. The City Council is cons idered 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.
CITY OF ALHAMBRA
Notes to Basic Financial Statement
June 30, 2022
37 Assigned Fund Balance – This classification includes amounts to be used by the government for specific purposes but do not meet the criteria to b e classified as restricted or committed. In governmental funds, other than the general fund, as signed fund balance represents the remaining amount that is not restricted or committed. The Cit y 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 norma lly have to be taken for the removal of an assignment.
Unassigned Fund Balance – This classification includes the residual balanc e for the government’s general fund and includes all spendable amounts not contained in other classifications. In other fund s, the unassigned classification is used only to repor t 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 wh ich 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 wh ich committed, assigned or unassigned fund balances are available, the City’s policy is to apply commit ted fund balance first, then assigned fund balance, and finally unassigned fund balance.
At June 30, 2022, the City has, by ordinances adopted by the City Council, committed fund balance for use in emergencies or potential future revenue shortfal ls of $10,685,008, building and facility reserve of $3,000,000, equipment reserve of $3,000,000, and arts in public places program of $521,432.
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 , 2022, is based on the independent claim manager’s estimate of probable losses plus an amount estimate d for incurred but not reported claims. An Internal Service Fund is used to account for the collection of premiums from various City departments related t o workers’ compensation claims and general claims lia bilities. Premiums are established based on histori cal claims experience.
Risk Pool Membership - The City is a member of the California Joint Powers Insurance Authority (Authority). The Authority is composed of 124 Calif ornia public entities and is organized under a join t powers agreement pursuant to California Government Code §6500 et seq. The Authority arranges and administers programs for the pooling of self-insure d losses, purchases excess insurance and reinsuranc e, and arranges for group purchased insurance for prop erty and other lines of coverage. The California JP IA began covering claims of its members in 1978. Each member government has an elected official as its representative on the Authority’s Board of Director s. The Board operates through a nine-member Executive Committee.
Excess Liability Program - Liability coverage includes auto liability, employment practices liability, public officials’ errors and omissions, bodily injury, per sonal injury, third party property damage, advertis ing injury, and employee benefit administration liabili ty. The City has a retained limit of $750,000 per occurrence. The overall coverage limit for each mem ber, including all layers of coverage, is $50 milli on per occurrence. The coverage structure is composed of a combination of pooled self-insurance, reinsurance, and excess insurance. Additional infor mation concerning the coverage structure is availab le on the Authority’s website:
https://cjpia.org/coverage/risk-sharing-pools/.
CITY OF ALHAMBRA
Notes to Basic Financial Statement
June 30, 2022
38 Excess Workers’ Compensation Program - The City has a retained limit of $500,000 per occurrence for workers’ compensation claims. The Authority’s poole d retention is $1 million per occurrence with reinsurance to statutory limits under California Wo rkers’ Compensation Law. Employer’s Liability losse s are pooled among members to $1 million. Coverage fr om $1 million to $5 million is purchased through reinsurance policies, and Employer’s Liability loss es 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 insura nce protection is underwritten by several insurance companies. The City’s property is current ly insured according to a schedule of covered property submitted by the City to the Authority. The total insured value of scheduled City property is $251,815,714. 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 $251,815,714 sched uled 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 an d 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. Th is coverage protects against liability damages by requiring tenant users of certain property to purch ase 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 pay s the insurance broker and/or carrier. The insurance is facilitated by the Authority.
Adequacy of Protection - During the past three fisc al 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 liabili ty coverage in 2021-22. Financial statements of the Authority may be obtained from its administrative o ffice located at 8081 Moody Street, La Palma, California 90623, or by calling (562) 467-8700. Ad ditional claims and lawsuits have been filed against the City in the normal course of business. It is reasonably possible that the City may be liab le for claims not to exceed the above stated retained limits for liability and workers’ compensation. In the opinion of management, the resolution of these matt ers will not have a material adverse effect on the financial condition of the City. (see notes IV.E and V.C.).
CITY OF ALHAMBRA
Notes to Basic Financial Statement
June 30, 2022
39 L. Property Taxes
The County of Los Angeles (County) has the responsi bility 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 precedin g January 1. Property taxes are levied on or before the first business day of September of each year. Prope rty tax bills, which include assessments, are due i n 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 conformi ty with accounting principles generally accepted in the United States of America requires management to mak e estimates and assumptions that affect the reporte d amounts of assets, deferred outflows of resources, liabilities, deferred inflows of resources and disc losure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses/expenditures during the report ing period. Actual results could differ from those estimates.
N. Deferred Outflows/Inflows of Resources:
In addition to assets, the Statement of Net Positio n reports a separate section for deferred outflows of resources. This separate financial statement eleme nt, deferred outflows of resources , represents a consumption of net assets that applies to future pe riods 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 liabi lity 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 th e total OPEB liabilities, and other items including changes in assumptions and differences be tween actual and expected experience. The other items are amortized and reported as total OPE B liability expense in future fiscal years based on the average of the expected remaining service li ves of all employees that are provided with benefits through the plan.
In addition to liabilities, the Statement of Net Po sition and the Governmental Funds Balance Sheet wil l sometimes report a separate section for deferred in flows of resources. This separate financial statem ent element, deferred inflows of resources, represents an acquisition of net assets that appl ies to future periods and will not be recognized as an inflow of resource s (revenue) until that time. The City has the foll owing 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 fu nds balance sheet. The governmental funds 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.
CITY OF ALHAMBRA
Notes to Basic Financial Statement
June 30, 2022
40 Deferred amount on bond refunding, net of accumulat ed amortization reported in the government-wide statement of net position and state ment of fiduciary net position. A deferred gain on refunding results from the difference in th e carrying value of refunded debt and its reacquisition price. This amount is deferred and a mortized 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 a nd 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 expe cted experience. These amounts are amortized and reported as total OPEB liability expe nse in future fiscal years based on the average of the expected remaining service lives of all empl oyees 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 th e fiduciary net position of the City of Alhambra’s California Public Employees’ Retirement System (Cal PERS) plans (Plans) and additions to/deductions from the Plans’ fiduciary net position have been de termined 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 p ension plan the benefit payments are recognized whe n due and payable in accordance with the benefit terms.
P. Postemployment Benefits Other than Pension Obligat ions (OPEB)
For purposes of measuring the OPEB liability and deferred outflows/inflows of resources related to OPEB, and OPEB expense of the City’s OPEB plan the benefi t payments are recognized when due and payable in accordance with the benefit terms.
Q. New Accounting Pronouncements
For the fiscal year ended June 30, 2022, the City i mplemented Governmental Accounting Standards Board (GASB) Statement 87,” Leases”. This Statement is ef fective for periods beginning after June 15, 2021.
The objective of this Statement is to better meet t he information needs of financial statement users b y improving accounting and financial reporting for le ases by governments. Implementation of the GASB Statement No. 87 did not have an impact on the City ’s financial statements for the fiscal year ended J une 2022.
CITY OF ALHAMBRA
Notes to Basic Financial Statement
June 30, 2022
41 II Reconciliation of Fund Financial Statements to Gov ernment-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) t otals Cash and investments $ 91,978,289 - 11,356,933 - 103,335,222 Restricted cash and investments 1 - - - 1 Receivables:
Accounts 9,515,240 - 72,542 - 9,587,782 Notes 242,888 - - - 242,888 Loans 161,905 - - - 161,905 Due from other funds 1,872,574 - 1,608,547 (401,552) 3,079,569 Inventories 104,825 - - - 104,825 21,374 - 15,199 - 36,573 Capital assets not being depreciated - 25,393,010 237,950 - 2 5,630,960 Capital assets, net of accumulated
depreciation - 120,290,000 2,490,36 5 - 122,780,365 Total assets 103,897,096 145,683,010 15,781,536 (401,552) 264,960,090 Deferred outflow of resources
Deferred amounts from net pensions - - 234,878 18,616,968 18, 851,846 Deferred amounts from total OPEB - - 67,496 10,502,063 10,5 69,559 Total deferred outflow - - 302,374 29,119,031 29,421,405 Total assets and deferred
outflow of resources $ 103,897,096 145,683,010 16 ,083,910 28,717,479 294,381,495 Liabilities and Fund Balances
Liabilities:
Accounts payable $ 3,658,236 - 1 85,839 - 3,844,075 Accrued liabilities 3,727,298 - - - 3,727,298 Bond interest payable - - - 192,886 192,886 Deposits 1,398,353 - - - 1,398,353 Retentions payable 281,836 - - - 281,836 Due to other funds 379,040 - 22,512 (401,552) - Unearned revenues 16,902,664 - - - 16,902,664 Long-term liabilities - 130,425,277 20,481,544 - 150,906,821 Total liabilities 26,347,427 130,425,277 20,68 9,895 (208,666) 177,253,933 Deferred inflow of resources:
Unavailable resources 1,367,177 - - (1,367,177) - Deferred amounts from net pensions - - 480,619 36,455,146 36, 935,765 Deferred amounts from total OPEB - - 20,226 2,998,227 3,0 18,453 Deferred amount from bond refunding - - - 269,713 269,713 Total deferred inflow 1,367,177 - 500,845 38,355,909 40,223,931 Total fund balances/
net position 76,182,492 15,257,733 (5,106,83 0) (9,429,764) 76,903,631 Total liabilities and fund
balances/net position $ 103,897,096 145,683,010 1 6,083,910 28,717,479 294,381,495 Prepaid items
CITY OF ALHAMBRA
Notes to Basic Financial Statement
June 30, 2022
42 (1) Capital assets used in government activities are not current financial resources and, therefore, are not reported in the balance sheet $ 145,683,010 (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 $ (3,880,000)
Lease revenue bonds (5,515,000)
Bond discount 41,890
Compensated absences (3,055,646)
Capital lease obligations (1,741,099)
Net Pension liability (87,589,592)
Total OPEB liability (33,731,446)
Self-insurance liabilities (15,435,928)
Internal Service Funds included in governmental activities 20,481,544 $ (130,425,277) (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 $ (5,106,830)
(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 $ (192,886)
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 1,367,177 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 18,616,96 8 Deferred outflow of resources - total OPEB 10,502,06 3
Deferred inflow of resources - net pension (36,455,1 46) Deferred inflow of resources - total OPEB (2,998,227 )
Deferred inflow of resources - bond refunding (269,7 13) $ (9,429,764)
CITY OF ALHAMBRA
Notes to Basic Financial Statement
June 30, 2022
43 Amounts reported for business-type activities in th e statement of net position are different from thos e 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 $ 22,307,395 - 22,307,395 Restricted cash and investments 567,428 - 567,428 Accounts receivable 4,102,753 - 4,102,753 Due from other funds - (3,079,569) (3,079,569) Inventories 822,583 - 822 ,583 Prepaid items 32,425 - 32,425 Capital assets:
Land 5,769,073 - 5,769,073
Construction in progress 4,623,940 - 4,623,940 Building, structures, and
improvements 88,992,838 - 88, 992,838 Machinery and equipment 5,726,536 - 5,726,536 Total capital assets 105,112,387 - 105,112,387 Less accumulated depreciation (24,585,370) - (24,585,370) Total capital assets, net of
accumulated depreciation 80,527,017 - 80,527,017 Deferred outflow of resources 3,651,026 - 3,651,026 Total assets and deferred outflow
of resources 112,010,627 (3,079,569) 108, 931,058 Liabilities and Net Position
Accounts payable 2,942,421 - 2,942,421 Bond interest payable 68,238 - 68,238 Due to other funds 1,471,022 (1,471,022) - Deposits 425,865 - 425,865 Retentions payable 245,649 - 245,649 Unearned revenue 296,408 296,408
Long-term liabilities:
Due within one year 1,243,735 - 1,243,735 Due in more than one year 24,696,892 - 24,696,892 Deferred inflow of resources 4,486,387 - 4,486,387 Total liabilities and deferred
inflow of resources 35,876,617 (1,471,022) 34,405,595 Total net position $ 76,134,010 (1,608,547) 74,525,463 (1) The interfund payable resulting from a cash over draft of $1,471,022 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 $1,608,547.
CITY OF ALHAMBRA
Notes to Basic Financial Statement
June 30, 2022
44 III Stewardship, Compliance, and Accountability
A. Budgetary Information
The City adheres to the following general procedure s in establishing its annual budget, which is refle cted in the accompanying basic financial statements:
Annual budgets are adopted by the City Council, whi ch 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 appropri ations within any fund. Expenditures may not exceed appropriations at the fund total level witho ut approval by the City Council. The budgeted amounts used in the basic financial statements repr esent the final adjusted amounts, which were increased $40,559,584 due to supplemental appropria tions made by the City Council during the fiscal year.
The budget for all funds is formally integrated int o the accounting system and employed as a management control device during the fiscal year.
Budgets for Governmental Fund Types are adopted on a modified-accrual basis.
Unexpended or unencumbered budget appropriations la pse at the end of the fiscal year.
Encumbered appropriations are re-appropriated in the ensuing fiscal year’s budget by action of the City Council.
B. Deficit Fund Balances/Net position, Accumulated Def icits
The following funds had deficit fund balances or net position deficits at June 30, 2022:
Major Governmental Fund:
American Rescue Plan Act Special Revenue Fund $ 169,0 03 Nonmajor Governmental Funds:
Home and Rental Rehabilitation Special Revenue Fund 221,445 Community Development Block Grant Special Revenue Fund 14,031 Transportation Capital Improvement Special Revenue Fund 209,953 Major Enterprise Fund:
Sanitation Fund 663,711
Internal Service Fund:
Self-Insurance 6,963,848
Compensated Absences 1,548,008
The fund deficit in the American Rescue Plan Act Fu nd will be eliminated through future grant revenues.
The fund deficit in the Home and Rental Rehabilitat ion Grant Fund, Community Development Black Grant Fund, and Transportation Capital Improv ement Fund will be eliminated through future grant revenues.
CITY OF ALHAMBRA
Notes to Basic Financial Statement
June 30, 2022
45 The net deficit in the Sanitation Enterprise Fund i s expected to be eliminated through future revenues and transfers from the General Fund.
The net deficit in the Self-Insurance Internal Serv ice Fund is expected to be eliminated through transfers from General Fund and increasing future charges within City’s operating departments. The net deficit in the Compensated Absences Fund is expected to be eliminated from future transfer from the General Fund.
IV Detailed Notes on all Funds
A. Cash and Investments
Cash and investments as of June 30, 2022, are class ified in the accompanying financial statements as follows:
Statement of Net Position:
Cash and investments $ 125,642,617
Restricted cash and investments 567,429
Total cash and investments $ 126,210,046
Cash and investments as of June 30, 2022, consist of the following:
Cash on hand $ 10,310
Deposits with financial institutions 8,751,254
Investments 117,448,482
Total cash and investments $ 126,210,046
1. Deposits
Custodial credit risk-deposits
In the case of deposits, this is the risk that in t he 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 pledgin g government securities as collateral. The fair val ue 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 fi rst trust deed mortgage notes having a value of 150 % of a city’s total deposits. At June 30, 2022, the carrying amount of the City’s restricted and unrestricted deposits (including cash and certifica tes of deposit) was $8,751,254 while the corresponding bank balances were $9,625,633, and wa s covered by federal depository insurance or collateralized in accordance with state law. The di fference between the carrying amount of deposits and the corresponding bank balance is due to outstanding checks at fiscal year-end.
CITY OF ALHAMBRA
Notes to Basic Financial Statement
June 30, 2022
46 2. Investments
The City’s investment policy, as approved by the Ci ty Council, authorizes the City to invest in certai n 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 investmen t policy, where more restrictive). The table also identifies certain provisions of the California Gov ernment 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 th an the general provisions of the California Government Code or the City’s investment policy.
Maximum Maximum
Authorized Maximum Percentage Investment
Investment Type Maturity Portfolio In One Issuer
U.S. Treasury Securities 5 years None None
U.S. Government Agency Securities 5 years 70% 30%
Banker’s Acceptances 180 days 40% 30%
Commercial paper 270 days 25% None
Negotiable Certificates of Deposit 5 years 30% None
Repurchase Agreements 1 year None None
Medium-Term Notes 5 years 30% None
Receivable-Backed Securities 5 years 20% None
Money Market Mutual Funds N/A 20% 10%
Local Agency Investment Funds (LAIF) N/A None $75 million* *Additional $75 million limit for COVID relief emergency LAIF account
Investments authorized under debt agreements
Investments authorized for funds held by bond trust ee include, U.S. Treasury Obligations, U.S.
Government Sponsored Enterprise Securities, Certifi cates of Deposits, Commercial Paper, Local Agency Bonds, Bankers’ Acceptances, Money Market Mu tual Funds, Repurchase Agreements, Investment Contracts and any other investments perm itted 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 m aximum 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.
CITY OF ALHAMBRA
Notes to Basic Financial Statement
June 30, 2022
47 Interest Rate Risk
Interest rate risk is the risk that changes in mark et interest rates will adversely affect the fair va lue 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 acco rdance with its policy, the City manages its exposu re 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 $ 38,019,700 - 9,8 43,960 28,175,740 Local Agency Investment Fund 79,306,400 79,306,40 0 - - Money Market Funds 121,257 121,257 - - Held by Bond Trustee:
Money Market Funds 1,125 1,125 - - Total $ 117,448,482 79,428,782 9,843,960 28, 175,740 Remaining Maturity (in Months)
Credit Risk
Credit risk is the risk that an issuer of an invest ment 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 Gover nment Code, the City’s investment policy, or debt agreement. The table below presents the minimum an d 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 $ 38,019,700 N/A - 38,019, 700 - Local Agency Investment Fund 79,306,400 None - - 79,306,400 Money Market Funds 121,257 A 121,257 - - Held by Bond Trustee:
Money Market Funds 1,125 A 1,125 - - Total $ 117,448,482 122,382 38,019,700 79,306,400
Minimum Legal
Rating
Ratings as of Fiscal Year End
CITY OF ALHAMBRA
Notes to Basic Financial Statement
June 30, 2022
48 Concentration of Credit Risk
The investment policy of the City contains no limit ations 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 Enti ty Securities $ 28,492,040 Federal Farm Credit Bank U.S Government Sponsored En tity Securities 7,532,180
Custodial Credit Risk – Investments
For an investment, this is the risk that, in the ev ent or the failure of the counterparty, the governm ent will not be able to recover the value of its invest ments 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 Cit y (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 age nt for the City under the terms of a custody agreement . Investments of $1,125 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 Ag ency 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, an d 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 wi thin 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 gi ves the highest priority to unadjusted quoted price s in active markets for identical assets (Level 1 mea surements) and the lowest priority to unobservable inputs (Level 3 measurements).
CITY OF ALHAMBRA
Notes to Basic Financial Statement
June 30, 2022
49 The City has the following recurring fair value measurements as of June 30, 2022:
Quoted Quoted Unobservable
Price Inputs Inputs
Investment Type Level 1 Level 2 Level 3 Total
U.S Government Sponsored
Entity Securities $ - 38,019,700 - 38,019,700 Total Leveled Investments $ - 38,019,70 0 - 38,019,700 Local Agency Investment Fund 79,306,400
Money Market Mutual Funds 121,257
Held by Bond Trustee:
Money Market Mutual Funds 1,125
Total Investment Portfolio $ 117,448,482
U.S. Government Sponsored Entity Securities are cla ssified Level 2 of the fair value hierarchy, as the valuation uses a market-based model which consi ders yield, price of comparable securities, coupon rate, maturity, credit quality and dealer-pr ovided prices. These prices are obtained from various pricing sources by our custodian bank.
Local Agency Investment Funds is measured at fair v alue, 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, 2020 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 2020, and $10,000 per month beginning Janua ry 2021 until paid in full. The notes receivable balance at June 30, 2022 is $242,888.
Loans Receivable
The City granted loans to individuals for property rehabilitation. The terms of the loans do not requi re repayment until the sale of the related property an d the stated interest rate is 5%. These loans are n ot forgivable. The loans receivable balance at June 30, 2022 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 ho me 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 offsett ing allowance for uncollectible accounts in the sam e amount as these loans are considered to be uncollectible.
CITY OF ALHAMBRA
Notes to Basic Financial Statement
June 30, 2022
50 C. Capital Assets
Capital assets activity for the primary government for the fiscal year ended June 30, 2022, is as follows:
Balances at Transfers from Balances at
July 1, 2021 Additions Deletions Transfers Successor Ag ency June 30, 2022 Governmental activities:
Capital assets, not being depreciated:
Land $ 22,049,439 - - - 222,561 22,27 2,000 Construction in progress 556,246 5,523,725 - (2,721,011) - 3,358,960 Total capital assets, not being depreciated 22,605,6 85 5,523,725 - (2,721, 011) 222,561 25,630,960 Capital assets, being depreciated:
Buildings, structures, and improvements 90,301,821 197,716 - - 527,438 91,026,975 Machinery and equipment 25,925,149 2,854,026 (1,140,154) 35,591 - 27,674,612 Infrastructure 110,440,248 2,289,486 (259 ,759) 2,685,420 - 115,155,395 Total capital assets, being depreciated 226,667,218 5,341,228 (1,399,913) 2,721,011 527,438 233,856,982 Less accumulated depreciation for:
Buildings, structures, and improvements (36,617,350) (1,773,941) - - (461,509) (38,852,800) Machinery and equipment (17,324,787) (2,104,494) 1,134,588 - - (18,294,693) Infrastructure (51,763,622) (2,358,137) 19 2,635 - - (53,929,124) Total accumulated depreciation (105,705,759) (6,2 36,572) 1,327,223 - (4 61,509) (111,076,617) Total capital assets, being depreciated, net 120,961 ,459 (895,344) (72,690) 2,72 1,011 65,929 122,780,365 Governmental activities $ 143,567,144 4,628,381 (72,690) - 288,490 148,411,325
Balances at Transfers/ Balances at
July 1, 2021 Additions Deletions Reclassification June 30, 2022 Business-type activities:
Capital assets, not being depreciated:
Land $ 5,769,073 - - - 5,769,073 Construction in progress 6,972,818 3,796,888 - (6,145,766) 4,623,94 0 Total capital assets, not being depreciated 12,741,8 91 3,796,888 - (6,145, 766) 10,393,013 Capital assets, being depreciated:
Buildings, structures, and improvements 18,781,049 71,470 - - 18,852,519 Utility systems 66,199,139 - ( 642,689) 4,583,869 70,140,319 Machinery and equipment 5,618,606 423,954 (316,024) - 5,726,5 36 Total capital assets, being depreciated 90,598,794 495,424 (958,713) 4,583,869 94,719,374 Less accumulated depreciation for:
Buildings, structures, and improvements (8,083,717) (385,549) - - (8,469,266) Utility systems (11,470,076) (791,622) 127,750 - (12,133,948) Machinery and equipment (3,977,263) (316,765) 311,872 - (3,982 ,156) Total accumulated depreciation (23,531,056) (1,4 93,936) 439,622 - ( 24,585,370) Total capital assets, being depreciated, net 67,067, 738 (998,512) (519,091) 4,5 83,869 70,134,004 Business-type activities $ 79,809,629 2,798,376 (519,091) (1,561,897) 80,527 ,017
CITY OF ALHAMBRA
Notes to Basic Financial Statement
June 30, 2022
51 Capital assets for Internal Service Funds included within governmental activities in the above table for the fiscal year ended June 30, 2022, is as follows:
Balances at Balances at
Capital Asset Type July 1, 2021 Additions Deletions Jun e 30, 2022 Internal Service Funds included in
governmental activities:
Capital assets, not being depreciated:
Land $ 237,950 - - 237,950 Total capital assets, not being depreciated 237,950 - - 237,9 50 Capital assets, being depreciated:
Structures and improvements 43,162 - - 43,162 Machinery and equipment 7,262,276 795,098 (400,033) 7,657,341 Total capital assets, being depreciated 7,305,438 795,098 (400,033) 7,700,503 Less accumulated depreciation for
Structures and improvements (1,079) (2,1 58) - (3,237) Machinery and equipment (5,145,475) (455,893) 394,467 (5,206,901) Total accumulated depreciation (5,146,554) (45 8,051) 394,467 (5,210,138) Totals – net of accumulated depreciation $ 2,396,834 337,047 (5,566) 2,728, 315
The following table summarizes the changes in capit al assets for the fiscal year ended June 30, 2022, for the water system network:
Water System Network:
Balances at Transfers/ Balances at
Capital Asset Type July 1, 2021 Additions Deletions Rec lassification June 30, 2022 Land $ 1,923,817 - - - 1,923,817 Construction in progress 1,434,950 1,225,078 - (1,446,860) 1,2 13,168 Building 1,729,797 - - - 1,729,797 Structure and improvement 9,036,829 - - - 9,036,829 Water lines 21,254,413 - - 1,120,680 22,375,093 Water reservoir and pump stations 7,678,209 - - - 7,678,209 Water wells 2,920,475 - - - 2,920,475 Machinery and equipment 1,334,536 15,000 - - 1 ,349,536 Motor vehicles 1,728,806 59,078 (194,536) - 1,593,348 Less accumulated depreciation for
water system network (12,918,669) (741,108) 190,384 - (13,4 69,393) Totals – net of accumulated depreciation $ 36,123,163 558,048 (4,152) (326 ,180) 36,350,879
CITY OF ALHAMBRA
Notes to Basic Financial Statement
June 30, 2022
52 The following table summarizes the changes in capit al assets for the fiscal year ended June 30, 2022, for the storm drain and sewer system networks:
Storm Drain and Sewer System Network:
Balances at Transfers/ Balances at
Capital Asset Type July 1, 2021 Additions Deletions Rec lassification June 30, 2022 Land $ 169,595 - - - 169,595 Construction in progress 5,537,868 2,571,810 - (4,698,906) 3,4 10,772 Storm drain line 1,410,513 - - - 1,410,51 3 Storm drain pump station 47,440 - - - 47,440 Sewer lines 17,862,705 - (63 2,219) 2,783,997 20,014,483 Sewer lift and pump stations 15,025,384 - (10,470) 679,192 15,694,106 Machinery and equipment 828,495 218,943 (97,913) - 9 49,525 Motor vehicles 1,029,470 - - - 1,029,470 Less accumulated depreciation for
storm drain and sewer system network (4,763,471) (529,367) 225,663 - (5,067,175) Totals – net of accumulated depreciation $ 37,147,999 2,261,386 (514,939) (1,235 ,717) 37,658,729
The following table summarizes the changes in capit al assets for the fiscal year ended June 30, 2022, for the Sanitation Fund:
Sanitation:
Balances at Transfers/ Balances at
Capital Asset Type July 1, 2021 Additions Deletions Rec lassification June 30, 2022 Structure and improvement $ - 24,894 - - 24,894 Machinery and equipment 14,921 - - - 14,921 Motor vehicles 507,071 34,043 (23,575) - 517,539 Less accumulated depreciation for
sanitation (401,940) (22,092) 23,575 - (400,457) Totals – net of accumulated depreciation $ 120,052 36,845 - - 156,897
The following table summarizes the changes in capit al assets for the fiscal year ended June 30, 2022, for the Golf Course and Clubhouse Fund:
Golf course/Clubhouse:
Balances at Transfers/ Balances at
Capital Asset Type July 1, 2021 Additions Deletions Rec lassification June 30, 2022 Land $ 3,675,661 - - - 3,675,661 Construction in progress - - - - - Building – golf course 512,215 - - - 512,215 Clubhouse – golf course 5,557,319 - - - 5,557,31 9 Structure and improvements 1,944,889 46,576 - - 1,99 1,465 Machinery and equipment 175,307 96,890 - - 272,19 7 Less accumulated depreciation for
golf course (5,446,976) (201,369) - - (5,648,345) Totals – net of accumulated depreciation $ 6,418,415 (57,903) - - 6,360,512
CITY OF ALHAMBRA
Notes to Basic Financial Statement
June 30, 2022
53 Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental activities:
General government $ 299,549
Public safety 1,492,371
Public works 3,055,549
Culture and recreation 931,052
Internal service fund assets allocated to various functions based on usage 458,051 Total depreciation expense – governmental activities $ 6,236,572 Business-type activities:
Water
$ 741,108
Sewer and storm drain 529,367
Sanitation 22,092
Golf course/clubhouse 201,369
Total depreciation expense – business-type activities $ 1,493,936
The City has entered into contracts for the constru ction or renovation of the following projects:
Project Expended Remaining
authorization to date commitment
Property rehabilitation $ 599,700 383,560 216,140 Street improvements 3,439,582 3,224,355 215,227 Street light improvements 1,293,061 741,800 551,261 Water main replacement 958,931 748,527 210,404 Water well rehabilitation 227,064 - 227,064 Water reservoir rehabilitation 660,400 403, 944 256,456 Sewer main replacement 759,145 - 759,145 Sewer lift station improvements 591,739 530 ,945 60,794 $ 8,529,622 6,033,131 2,496,491
CITY OF ALHAMBRA
Notes to Basic Financial Statement
June 30, 2022
54 D. Interfund Accounts
Individual fund interfund receivables, payables, and transfers at June 30, 2022, are:
Due from Due to
other funds other funds Transfers in Transfers out
General Fund $ 1,872,574 - 359 ,369 13,097,990 Other Governmental Funds:
Special Revenue Funds:
Law Enforcement - 34,363 - - TDA Bikeway - 60,000 - - Proposition C - - - 276,954 Police Facility Assessment - - - 2,181,475 Home and Rental Rehabilitation Grant 70,451 - - Commuunity Development Block Grant - 156,145 - 125,191 Transportation Capital Improvement - 58,081 276,954 5,486 Debt Service Funds:
Police Facility - - 2,091,635 - Parking Authority - - 412,378 - Capital Projects Fund:
Capital Outlay - - 2 ,693,984 - Total other Governmental Funds - 37 9,040 5,474,951 2,589,106 Enterprise Funds:
Golf Course/Clubhouse - 1,471,022 - 71,359 Total Enterprise Funds - 1,471,022 - 71,359 Internal Service Funds:
Self-Insurance - 22,512 9,924,135 - Total Internal Service Funds - 22,51 2 9,924,135 - Total $ 1,872,574 1,872,574 15,758,455 15,758,455
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) payme nts between funds are made.
Transfers were used to 1) move revenues from the fu nd with collection authorization to the debt servic e fund as a debt service principal and interest payme nts become due, 2) move unrestricted revenues to finance various programs accounted for in other fun ds 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.
CITY OF ALHAMBRA
Notes to Basic Financial Statement
June 30, 2022
55 E. Long-Term Liabilities
Changes in long-term liabilities for the fiscal year ended June 30, 2022, were as follows:
Balances, Balances, Due within
July 1, 2021 Additions Retirements June 30, 2022 one ye ar Governmental activities:
Other Debt:
Alhambra Capital Improvements
Corporation – certificates
of participation $ 5,650,000 - (1, 770,000) 3,880,000 1,880,000 Alhambra Parking Authority -
lease revenue bonds 5,665,000 - ( 150,000) 5,515,000 155,000 Less bond discount (43,857) 1,967 - (41,890) (1,967) Direct Debt:
Notes and loans payable 138,965 - (138,965) - - Capital lease obligations (IV.F.) 2,045,163 788, 473 (1,092,537) 1,741,099 939,362 Other Long-Term Liabilities:
Compensated absences 3,126,137 2,183,516 ( 2,254,007) 3,055,646 660,530 Net Pension liability (V.E.) 15,582,889 247,401 - 15,830,290 - Net Pension liability (V.D.) 121,681,592 - (49,922,290) 71,759,302 - Total OPEB liability (V.F.) 32,023,782 1,707,664 - 33,731,446 - Self-insurance liabilities 18,546,313 955,160 (4,065,545) 15,435,928 3,244,860 Subtotal governmental activities 204,415,984 5,884, 181 (59,393,344) 150,906,821 6,877,785 Business-type activities:
Water:
Other Debt:
Revenue refunding bonds 3,550,000 - (825,000) 2,725,000 865,000 Add bond premium 412,547 - (11 2,513) 300,034 112,513 Other Long-Term Liabilities:
CCompensated absences 363,950 274,172 (301,009) 337,113 72,873 Pension liability (V.E.) 1,665,650 26,447 - 1,692,097 - Pension liability (V.D.) 9,892,787 - (4,058,713) 5,834,074 - OPEB liability (V.F.) 3,357,394 181,275 - 3,538,669 - Sewer and storm drain:
Other Debt:
Revenue bonds 7,615,000 - (160,00 0) 7,455,000 165,000 Add bond premium 237,706 - (12 ,565) 225,141 12,566 Other Long-Term Liabilities:
Compensated absences 46,044 50,745 (52,524) 44,265 9,569 Pension liability (V.E.) 304,474 4,833 - 309,307 - Pension liability (V.D.) 1,523,173 - (624,913) 898,260 - OPEB liability (V.F.) 468,551 25,298 - 493,849 - Sanitation:
Other Long-Term Liabilities:
Compensated absences 14,671 38,405 (24,330) 28,746 6,214 Pension liability (V.E.) 358,204 5,688 - 363,892 - Pension liability (V.D.) 1,796,104 - (736,887) 1,059,217 - OPEB liability (V.F.) 603,385 32,578 - 635,963 - Subtotal business-type activities 32,209,640 639, 441 (6,908,454) 25,940,627 1,243,73 5 Total long-term liabilities $ 236,625,624 6,523,622 (66,301,798) 176,847,448 8,121,520
CITY OF ALHAMBRA
Notes to Basic Financial Statement
June 30, 2022
56 Typically, the General Fund has been used to liquidate the liability for Pension and OPEB liability.
Long-term liabilities at June 30, 2022 consist of:
(1) Governmental Activities
Bond and Certificate Indebtedness
Certificates of Participation – In 1992, the Alhambra Capital Improvements Corporat ion 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 princ ipal value. Debt service on the certificates is provided from a lease payment made by the City u sing monies collected from a Citywide Public Facility Assessment District. In August 2005 , 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 const ruction of certain public capital facilities.
The interest rate on the reoffered Certificates rem ains unchanged. The reserve requirement is satisfied through a municipal bond debt service res erve fund insurance policy. Pledged rental payments equaled debt service payment during fiscal year ended June 30, 2022. At June 30, 2022, $3,880,000 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 constructi on 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 red emption. The City under a lease agreement shall make lease payments in amounts equa l to the debt service on the bonds. The reserve requirement is satisfied through a municipa l bond debt service reserve fund insurance policy. Pledged rental payments equaled debt servic e payment during fiscal year ended June 30, 2022. At June 30, 2022, $5,515,000 was outstanding.
Notes, Loans, and Other Long-Term Debt
Bank Notes Payable – In December 2006, the City ent ered into an agreement with Banc of America Public Capital Corporation to fund the purc hase of a new and upgraded heating, ventilation, and air conditioning system for City f acilities. Quarterly payments of $70,496 at an interest rate of 3.88% are due through December 13, 2021. At June 30, 2022, $0 was outstanding.
(2) Business-type Activities
Bond Indebtedness
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
CITY OF ALHAMBRA
Notes to Basic Financial Statement
June 30, 2022
57 $955,000, plus interest at 2.0% to 5.0% through Mar ch 1, 2025. Bond proceeds were used to refund the remaining outstanding amount of $8,980,0 00 on the $14,735,000 2006 Water System Revenue Certificates of Participation. The r efunding resulted in an economic gain (difference between present value of the debt servi ce payments on the old and new debt) of $826,437 and a reduction in total debt service paym ents of $2,248,476. The Bonds are subject to optional or mandatory redemption prior to their stated maturity dates. The bonds are secured by pledged net revenues of the water enterprise fun d. There is no reserve requirement for the bonds. At June 30, 2022, $2,725,000 was outstanding.
Wastewater Revenue Bonds - In September 2018, the Alhambra Facilities Financin g Authority, a nonprofit entity of the City, issued $ 8,005,000 serial and term bonds, which mature in increasing amounts from $95,000 to $425,0 00, 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 syste m and pay costs of issuance. The bonds maturing on or after June 1, 2029, are subject to r edemption at the option of the Authority any time prior to the maturity date of the bonds withou t 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 re venues of the sewer enterprise fund.
There is no reserve requirement for the bonds. At June 30, 2022, $7,455,000 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 $3,055,646 at June 30, 2022 for governmental activities and $410,124 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 $15,435,928 reported in the Sel f-Insurance Internal Service Fund at June 30, 2022 is based on requirements of GASB Statement No. 10, w hich 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 fi nancial statements and the amount of the loss can b e reasonably estimated. Changes in the Fund’s claims liability amount during the two fiscal years ended June 30, 2022, were:
2022 2021
Balance, July 1 $ 18,546,313 16,468,698
Claims and changes in estimates 955,160 5,1 51,753 Claim payments (4,065,545) (3,074,138)
Balance, June 30 $ 15,435,928 18,546,313
CITY OF ALHAMBRA
Notes to Basic Financial Statement
June 30, 2022
58 (5) Future Minimum Debt Service Requirements
Annual debt service requirements to maturity are as follows:
Governmental Activities:
Fiscal year
Certificates of
Participation Lease Revenue Bonds
ending June 30 Principal Interest Principal Interest
2023 $ 1,880,000 198,450 155,000 256, 905 2024 2,000,000 67,500 160,000 251, 393 2025 - - 165,000 245 ,501 2026 - - 170,000 239 ,008 2027 - - 180,000 232 ,007 2028-2032 - - 1,010,000 1,034,750 2033-2037 - - 1,275,000 764,169 2038-2042 - - 1,630,000 404,250 2043-2044 - - 770,000 39,000 Sub-total 3,880,000 265,950 5,515,000 3,466,983 Less bond discount - - (41 ,890) - Total $ 3,880,000 265,950 5,473,110 3,4 66,983 Fiscal year Others* Total
ending June 30 Principal Interest Principal Interest
2023 1,249,748 55,287 3,284,748 510, 642 2024 638,672 23,909 2,798,672 342, 802 2025 423,916 13,187 588,916 258, 688 2026 427,079 10,025 597,079 249, 033 2027 430,328 6,774 610,328 238 ,781 2028-2032 123,284 3,434 1,133,284 1,038,184 2033-2037 - - 1,275,000 764,169 2038-2042 - - 1,630,000 404,250 2043-2044 - - 770,000 39,000 Sub-total 3,293,027 112,616 12,688,027 3 ,845,549 Less bond discount - - (41 ,890) - Total $ 3,293,027 112,616 12,646,137 3,84 5,549 * Others consist of capital leases and portion of self-insurance liabilities with debt service schedule.
CITY OF ALHAMBRA
Notes to Basic Financial Statement
June 30, 2022
59 Business-type Activities:
Fiscal year Revenue Bonds
ending June 30: Principal Interest
2023 $ 1,030,000 410,106
2024 1,080,000 358,606
2025 1,140,000 304,606
2026 195,000 247,606
2027 200,000 237,856
2028-2032 1,175,000 1,031,680
2033-2037 1,390,000 812,610
2038-2042 1,625,000 573,339
2043-2047 1,920,000 278,978
2048 425,000 14,876
Sub-total 10,180,000 4,270,263
Add bond premium 525,175 -
Total $ 10,705,175 4,270,263
(6) Pledged Revenue
The Water Revenue Refunding Bonds and Wastewater Re venue 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 pre sented in the accompanying notes. The purpose for which the proceeds of the debt issuance was utilize d is disclosed in the debt description of the accompanying notes. For the current fiscal year, de bt service payment as percentage of the pledged gross revenue (net of certain expenses where so req uired by the debt agreement) is indicated in the table below. This percentage approximates the relat ionship of the debt service of pledged revenues for the remainder of the term of the commitment. The Ci ty is required to maintain system net revenues during each fiscal year equal to at least 120% of t he annual debt service in such fiscal year. During the current fiscal year this percentage was 189% for Wa ter Revenue Refunding Bonds and 614% for Wastewater Revenue Bonds.
Annual Amount Pledged Revenue
Description of Pledged Revenue Annual Debt as a Perc entage of Pledged Revenue (net of expenses) Service Payment o f Debt Service Water Revenues $ 1,896,178 1,002,500 189% Wastewater Revenues 2,713,834 441,856 614%
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 prin cipal and interest, with interest rates ranging fro m
2.8% to 11.8%. The gross amount of the assets acquired under capital leases is $4,495,891 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, 2022, is $1,555,138.
CITY OF ALHAMBRA
Notes to Basic Financial Statement
June 30, 2022
60 Future minimum lease payments under capital leases and the present value of the net minimum lease payments at June 30, 2022 are:
Governmental
activities
Fiscal year
ending June 30
2023 $ 994,649
2024 352,195
2025 126,718
2026 126,718
2027 126,717
2028 126,718
Total minimum lease payments 1,853,715
Less amount representing interest (112,616)
Present value of future minimum lease payments $ 1,74 1,099
V. Other Information
A. Litigation
In December 1995, the California Supreme Court uphe ld the constitutionality of Proposition 62, a 1986 initiative which required voter approval of all new or increased taxes. Since the City is a charter ci ty, City management, based upon advice from counsel, believe s the Court’s ruling will not invalidate certain ta xes 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 upo n the financial position of the City, if any, is cu rrently unknown and has not been reflected in the basic financial statements.
The City is a defendant in general damage and perso nal injury lawsuits and claims arising in the norma l course of operations. In the opinion of City manage ment, outside counsel, and the City Attorney, the potential liability to the City for such lawsuits a nd 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
Non-Commitment Debt
The City has issued the special obligations listed below that are payable solely out of revenues deriv ed from the various projects financed by the bonds. Ne ither 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 man ner obligated to make any appropriation for payment therefore:
$31,390,000 Alhambra Revenue Bonds Series 2016 (Ath erton Baptist Homes). The bonds were issued in October 2016 to refund the remaining amou nt of $28,230,000 on the Series 2010 A/B Bonds. $26,855,000 is outstanding at June 30, 2022.
CITY OF ALHAMBRA
Notes to Basic Financial Statement
June 30, 2022
61 C. Insurance Joint Powers Authority
The City is a member of the California Joint Powers Insurance Authority (CJPIA) a joint powers authori ty formed to enable individual cities to join together to obtain certain casualty and health insurance coverage’s as a group, to self-insure, where necess ary, and to obtain adequate liability and worker’s compensation coverages at an affordable cost. CJPIA has 124 member agencies at June 30, 2022 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 $ 12,730,137 6,020,670 17,722,048 (1,726,002) CalPERS - Safety 66,820,716 11,459,682 22, 328,756 4,782,244 Other Pension Benefit 18,195,586 3,544,365 928,399 1,309,361 $ 97,746,439 21,024,717 40,979,203 4, 365,603
(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 Mi scellaneous (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 Plan s are established by State statute and City of Alhambra resolution. CalPERS issues publicly availa ble reports that include a full description of the pension plans regarding benefit provisions, assumpt ions 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 6 2 with statutorily reduced benefits. For employees hired into a plan with the 1.5% at 65 formula, eligibilit y for service retirement is age 55 with at least 5 years of services. PEPRA miscellaneous members become eli gible for service retirement is age 55 with at least 5 years of services. PEPRA miscellaneous memb ers become eligible for service retirement upon attainment of age 52 with at least 5 years of servi ce. All members are eligible for non-duty disabilit y 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 2 W Death Benefit. Safety members can receive a special death benefit if the member dies while acti vely 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.
CITY OF ALHAMBRA
Notes to Basic Financial Statement
June 30, 2022
62 The Plans’ provisions and benefits in effect at the June 30, 2021, measurement date, are summarized as follows:
Miscellaneous
Prior to On or after
Hire date 1-Jan-13 1-Jan-13
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 11.51% 11.51%
Required employer payment of unfunded liability $4,527,000 Safety
Prior to On or after
Hire date 1-Jan-13 1-Jan-13
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 3.00% 2.0% to 2.7% Required employee contribution rates 9% 12.50%
Required employer normal cost rates 21.25% 21.25%
Required employer payment of unfunded liability $7,052,326
Employees Covered
At the June 30, 2021, measurement date, the followi ng employees were covered by the benefit terms for each Plan:
Miscellaneous Safety
Inactive employees or beneficiaries currently receiving benefits 382 299
Active employees 259 131
Inactive employees entitled to but not yet receiving
benefits 434 94
Total 1,075 524
Contributions
Section 20814(c) of the California Public Employees ’ Retirement Law requires that the employer contribution rates for all public employers be dete rmined on an annual basis by the actuary and shall be effective on the July 1 following notice of a ch ange in the rate. The total plan contributions are
CITY OF ALHAMBRA
Notes to Basic Financial Statement
June 30, 2022
63 determined through CalPERS’ annual actuarial valuat ion process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the fiscal year, with an additional amount to finance any unfu nded accrued liability. The City is required to contribute the difference between the actuarially d etermined rate and the contribution rate of employees. City contribution rates may change if pl an contracts are amended. Payments made by 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 ea ch 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, 2021, using an annual actuarial valu ation as of June 30, 2020 rolled forward to June 30 , 2021 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, 2020, actuarial valuations were determined using the following actuarial assumptions:
Miscellaneous Safety
Valuation Date June 30, 2020 June 30, 2020
Measurement Date June 30, 2021 June 30, 2021
Actuarial Cost Method
Actuarial Assumptions:
Discount Rate 7.15% 7.15%
Inflation 2.50% 2.50%
Salary Increases (1) (1)
Mortality Rate Table
1 (2) (2)
Post Retirement Benefit Increase (3) (3)
Entry Age Normal in
Accordance with the
Requirements of GASB 68
(1) Varies by Entry Age and Service
(2) The mortality 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 improvement using 90% of Scale MP-2016 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS' Experience Study and Review of Actuarial Assumptions report from December 2017 that can be found on the CalPERS' website.
(3) The lesser of contract COLA or 2.50% until Purchasing Power Protection Allowance floor on purchasing power applies, 2.50% after.
CITY OF ALHAMBRA
Notes to Basic Financial Statement
June 30, 2022
64 Long-term Expected Rate of Return
The long-term expected rate of return on pension pl an 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 retur n, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all of the funds’ asset classes, expecte d 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 an d long-term, the present value of benefits was calculated for each fund. The expected rate of retu rn was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the on e calculated using both short-term and long-term retu rns. 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:
Assumed
Asset Class 1
Asset
Allocation
Real Return
Years 1 - 102
Real Return
Years 11+3
Public Equity 50.00% 4.80% 5.98%
Fixed Income 28.00% 1.00% 2.62%
Inflation Assets 0.00% 0.77% 1.81%
Private Equity 8.00% 6.30% 7.23%
Real Estate 13.00% 3.75% 4.93%
Liquidity 1.00% 0.00% -0.92%
Total 100.00%
(2) An expected inflation of 2.00% used for this period. (3) An expected inflation of 2.92% used for this period. (1) In the System's ACFR, Fixed Income is included in Global Debt Securities; Liquidity is included in Short-term investments; Inflation Assets are included in both Global Equity Securities and Global Debt Securities.
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 co ntributions from plan members will be made at the current member contribution rates and that contribu tions from employers will be made at statutorily required rates, actuarially determined. Based on th ose 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.
CITY OF ALHAMBRA
Notes to Basic Financial Statement
June 30, 2022
65 Subsequent Events
On July 12, 2021, CalPERS reported a preliminary 21 .3% net return on investments for fiscal year 2020-21. Based on the thresholds specified in CalPE RS Funding Risk Mitigation policy, the excess return of 14.3% prescribes a reduction in investmen t volatility that corresponds to a reduction in the discount rate used for funding purposes of 0.20%, f rom 7.00% to 6.80%. Since CalPERS was in the final stages of the four-year Asset Liability Manag ement (ALM) cycle, the board elected to defer any changes to the asset allocation until the ALM proce ss concluded, and the board could make its final decision on the asset allocation in November 2021.
On November 17, 2021, the board adopted a new strat egic asset allocation. The new asset allocation along with the new capital market assumptions, econ omic assumptions and administrative expense assumption support a discount rate of 6.90% (net of investment expense but without a reduction for administrative expense) for financial reporting pur poses. This includes a reduction in the price inflation assumption from 2.50% to 2.30% as recomme nded in the November 2021 CalPERS’ Experience Study and Review of Actuarial Assumption s. This study also recommended modifications to retirement rates, termination rates, mortality r ates and rates of salary increases that were adopte d by the board. These new assumptions will be reflected in the GASB Statement No. 68 accounting valuation reports for the June 30, 2022, measurement date.
Amortization of Deferred Outflows and Deferred Inflows of Resources
Under GASB Statement No. 68, gains and losses relat ed to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time.
Net difference between projected
and actual earnings on pension
plan investments
5 year straight-line amortization
All other amounts
The amortization period differs depending on the source of the gain or loss:
Straight-line amortization over the expected
average remaining service lifetime (EARSL) of
all members that are provided with benefits
CITY OF ALHAMBRA
Notes to Basic Financial Statement
June 30, 2022
66 (c) Changes in the Net Pension Liability
The changes in the Net Pension Liability for each P lan using the measurement date of June 30, 2021, are as follows:
Miscellaneous Plan:
Total Pension
Liability
Plan Fiduciary
Net Position
Net Pension
Liability/(Asset)
Balance at June 30, 2020 $ 187,573,394 148,676,988 38,896,406 Changes recognized for the measurement period
Service cost 3,094,490 - 3,094 ,490 Interest on the total pension liability 13,086,365 - 13,086,365 Difference between actual and expected (1,926,457) - (1,926,457) Contribution - employer - 5,957,153 (5,957,153) Contribution - employee - 1,329,946 (1,329,946) Net investment income - 33,282,087 (33,282,087) Benefit payments (8,336,188) (8,336,188) -
Administrative expense - (148,519) 148,519 Net changes during 2020-21 5,918,210 32,084,479 (26,166,269) Balance at June 30, 2021 $ 193,491,604 180,761,467 12,730,137 Safety Plan:
Total Pension
Liability
Plan Fiduciary
Net Position
Net Pension
Liability/(Asset)
Balance at June 30, 2020 $ 299,019,941 203,022,691 95,997,250 Changes recognized for the measurement period
Service cost 4,730,835 - 4,730 ,835 Interest on the total pension liability 21,095,197 - 21,095,197 Difference between actual and expected 1,618,199 - 1,618,199 Contribution - employer - 9,976,632 (9,976,632) Contribution - employee - 1,668,557 (1,668,557) Net investment income - 45,178,383 (45,178,383) Benefit payments (15,931,656) (15,931,656) -
Administrative expense - (202,807) 202,807 Net changes during 2020-21 11,512,575 40,689,109 (29,176,534) Balance at June 30, 2021 $ 310,532,516 243,711,800 66,820,716 Increase (Decrease)
Increase (Decrease)
CITY OF ALHAMBRA
Notes to Basic Financial Statement
June 30, 2022
67 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 e ach Plan, calculated using the discount rate for ea ch 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 6.15% 6.15%
Net Pension Liability $ 38,257,395 108,347,040
Current Discount Rate 7.15% 7.15%
Net Pension Liability 12,730,137 66,820,716
1% Increase 8.15% 8.15%
Net Pension Liability (8,389,426) 32,763,803
Pension Plan Fiduciary Net Position
Detailed information about each pension plan’s fidu ciary 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 fiscal year ended June 30, 2022, the City of Alhambra recognized pension expense (income) of $(1,726,002). At June 30, 2022, the City of Alhambr a reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Miscellaneous
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date $ 6,020,670 - Differences between expected and actual experiences - (1,455,541) Net differences between projected and actual earnings on pension plan investments - (16,266, 507) Total $ 6,020,670 (17,722,048)
CITY OF ALHAMBRA
Notes to Basic Financial Statement
June 30, 2022
68 $6,020,670 reported as deferred outflows of resourc es related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the fiscal year ending June 30, 2023. Other amounts reported as deferred o utflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Fiscal
Year Ended
June 30 Miscellaneous
2023 $ (5,204,522)
2024 (4,068,131)
2025 (3,909,235)
2026 (4,540,160)
Safety Plan:
For the fiscal year ended June 30, 2022, the City o f Alhambra recognized pension expense of $4,782,244. At June 30, 2022, the City of Alhambra reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Safety
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date $ 10,380,883 - Differences between expected and actual experiences 1,078,799 (116,325) Net differences between projected and actual earnings on pension plan investments - (22,212, 431) Total 11,459,682 (22,328,756)
$10,380,883 reported as deferred outflows of resour ces related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the fiscal year ending June 30, 2023. Other amounts reported as deferred o utflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Fiscal
Year Ended
June 30 Safety
2023 $ (5,162,365)
2024 (4,594,824)
2025 (5,326,920)
2026 (6,165,848)
CITY OF ALHAMBRA
Notes to Basic Financial Statement
June 30, 2022
69 (e) Payable to the Pension Plan
At June 30, 2022, the City of Alhambra reported a p ayable of $843,801 for the outstanding amount of contributions to the pension plan required for the fiscal year ended June 30, 2022.
E. Other Pension Benefits
(a) General Information about the Pension Plan:
Plan Description
The City provides post-retirement benefits to retir ees provided they have the requisite full-time year s of service with the City combined with all previous years of service in other public agencies. The pla n 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 No. 68.
Benefits Provided
Retirees with 20 years of service currently would r eceive 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.
Employees Covered
At June 30, 2021 measurement date, the following em ployees were covered by the benefit terms for the Plan:
Inactive employees currently receiving benefits 145
Active employees 239
Total 384
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 p ension liability of the Plan is measured as of June 30, 2021, using an annual actuarial valuation as of Jun e 30, 2020. 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.
CITY OF ALHAMBRA
Notes to Basic Financial Statement
June 30, 2022
70 Actuarial Assumptions
The total pension liabilities in the June 30, 2020, actuarial valuation was determined using the following actuarial assumptions:
Valuation Date June 30, 2020
Measurement Date June 30, 2021
Actuarial Assumptions:
Contribution Policy Pay-as-you-go
Discount Rate 2.16%
Inflation 2.75%
Payroll Growth 3.00%
Fixed Dollar Benefit Increase No increase
Participation 100%
Investment Rate of Return N/A
Mortality (1)
Mortality Improvement (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
Discount rate was decreased from 2.21% to 2.16% bas ed on municipal bond rate as of the measurement date.
No changes in benefit terms during the valuation period.
Discount Rate
The discount rate used to measure the total pension liability was 2.16% for the Plan and was based on the Bond Buyer 20 Index.
CITY OF ALHAMBRA
Notes to Basic Financial Statement
June 30, 2022
71 (c) Changes in the Total Pension Liability
The changes in the Total Pension Liability for the Plan using the measurement date of June 30, 2021, are as follows:
Increase (Decrease)
Total Pension
Liability
Balance at June 30, 2020 $ 17,911,217
Changes in total pension liability
Service cost 400,735
Interest on the total pension liability 397,682
Changes of benefit terms -
Benefit payments (634,592)
Current fiscal year net changes 284,369
Balance at June 30, 2021 $ 18,195,586
Sensitivity of the Total Pension Liability to Chang es 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 tha t is 1-percentage point lower or 1-percentage point higher than the current rate:
1% Decrease 1.16%
Total Pension Liability $ 20,886,771
Current Discount Rate 2.16%
Total Pension Liability 18,195,586
1% Increase 3.16%
Total Pension Liability 15,999,090
Pension Plan Fiduciary Net Position
There is no fiduciary net position for the pension plan.
CITY OF ALHAMBRA
Notes to Basic Financial Statement
June 30, 2022
72 (d) Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
For the fiscal year ended June 30, 2022, the City o f Alhambra’s recognized pension expense of $1,309,361. At June 30, 2022, 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
Pension contributions subsequent to measurement date $ 670,062 - Difference between actual and expected experience 15 6,335 75,283 Changes in assumptions 2,717,968 853,116
Total $ 3,544,365 928,399
$670,062 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 fiscal year ending June 30, 2023. Other amounts reported as deferred o utflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Fiscal
Year Ended
June 30 Amount
2023 $ 510,944
2024 480,944
2025 342,700
2026 549,739
2027 61,577
(e) Payable to the Pension Plan
At June 30, 2022, there was no outstanding amount o f contribution payable to the pension plan for the fiscal year ended June 30, 2022.
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 $ 35,528,779 11,249,276 3,370,998 2,845,706 City Council Plan 2,871,148 798,438 90,404 412,242 $ 38,399,927 12,047,714 3,461,402 3 ,257,948
CITY OF ALHAMBRA
Notes to Basic Financial Statement
June 30, 2022
73 (a) General Information about the OPEB Plan:
Plan Description
In connection with the retirement benefits for empl oyees described in Note V.D., the City provides post-retirement medical benefits to retirees throug h 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.
The City also provides retired City Council members health insurance coverage after 12 years of service on the City Council (City Council Plan). The plan is a single employer defined benefit plan.
The City commenced prefunding OPEB liabilities in a trust in fiscal year 2022. Since that occurred after the June 30, 2021 measurement date, the impac t is not reflected in the current fiscal year OPEB report. No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75.
Benefits Provided
PERS Health Plan benefits are available to employee s 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 the Public Employees’ Medical and Hospital Care Act min imum toward the cost of medical coverage for the retiree until the retiree reached age 65 and be come eligible for Medicare. After reaching age 65 and becoming eligible for Medicare, the retiree mus t 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 cove rage received by sitting City Council, but shall no t be less than substantially the same health care rec eived during the retiree’s tenure. The City directl y pays or reimburses the actual cost of health insurance premiums for the retired City Council member.
Employees Covered
At the June 30, 2021, measurement date, the followi ng employees were covered by the benefit terms for each Plan:
PERS Health
Plan
City Council
Plan
Inactive employees or beneficiaries currently receiving benefits 155 7 Active employees 379 5
Inactive employees entitled to but not yet receiving benefits 184 - Total 718 12
Contributions
Currently, contributions are not required from plan members. The City commenced prefunding OPEB liabilities in a trust during the fiscal year 2022, the City paid $279,337 in insurance premiums, tota l implied subsidy was $478,000, payments to OPEB trus t was $2,292,601, and administrative expenses were $564, resulting in total contributions of $3,050,502.
CITY OF ALHAMBRA
Notes to Basic Financial Statement
June 30, 2022
74 (b) Total OPEB Liability
As of June 30, 2022, the City of Alhambra’s net pos temployment 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, 2021, using an annual actuarial valuation as of June 30, 2020. A summary of principal assumptions and methods used t o determine the total OPEB liability is shown below.
Actuarial Assumptions
The total OPEB liabilities in the June 30, 2020 act uarial valuations were determined using the following actuarial assumptions:
PERS Health Plan City Council Plan
Valuation Date June 30, 2020 June 30, 2020
Measurement Date June 30, 2021 June 30, 2021
Actuarial Assumptions:
Contribution Policy Pay-as-you-go Pay-as-you-go
Discount Rate 2.16% 2.16%
Inflation 2.75% 2.75%
Payroll Growth 3.00% 3.00%
PEMHCA Minimum 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
Healthcare Participation at
Retirement
50% if eligible for
PEMHCA minimum only,
70% if eligible for fixed
dollar benefit
100% if eligible
Investment Rate of Return N/A N/A
Mortality, Retirement, Disability,
Termination
(1) (1)
Mortality Improvement (2) (2)
(2) Morality projected fully generational with Scale MP-2020 (1)
CalPERS' 1997-2015 Experience Study. The Experience Study report can be obtained at the CalPERS' website under Forms and Publications.
Change of Assumptions
Discount rate was decreased from 2.21% to 2.16% bas ed on municipal bond rate as of the measurement date.
No changes in benefit terms during the valuation period.
CITY OF ALHAMBRA
Notes to Basic Financial Statement
June 30, 2022
75 Discount Rate
The discount rate used to measure the total OPEB li ability was 2.16% 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 3 0, 2021, are as follows:
PERS Health Plan City Council Plan
Increase (Decrease) Increase (Decrease)
Total OPEB
Liability
Total OPEB
Liability
Balance at June 30, 2020 $ 33,708,753 2,744,359 Changes recognized for the measurement period
Service cost 1,441,018 132,117
Interest 769,203 62,561
Change in assumptions 298,124 23,457
Benefit payments (688,319) (91,346)
Current Net Changes 1,820,026 126,789
Balance at June 30, 2021 $ 35,528,779 2,871,148
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 th e 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 Plan City Council Plan
1% Decrease 1.16% 1.16%
Total OPEB Liability $ 42,345,411 3,409,406
Current Discount Rate 2.16% 2.16%
Total OPEB Liability 35,528,779 2,871,148
1% Increase 3.16% 3.16%
Total OPEB Liability 30,197,971 2,452,913
CITY OF ALHAMBRA
Notes to Basic Financial Statement
June 30, 2022
76 Sensitivity of the Total OPEB Liability to Changes in the Healthcare Trend Rate – The following presents the total OPEB liability of the City of Al hambra for the Plan, calculated using the healthcar e trend rate, as well as what the City’s total OPEB l iability 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 Liability $ 29,425,648 2,423,848
Current Discount Rate
Total OPEB Liability 35,528,779 2,871,148
1% Increase
Total OPEB Liability 43,516,515 3,442,587
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 fiscal year ended June 30, 2022, the City o f Alhambra’s recognized postemployment benefits other than pension expense of $2,845,706. At June 3 0, 2022, the City of Alhambra reported deferred outflows of resources and deferred inflows of resou rces related to total OPEB liability from the following sources:
Deferred
Outflow of
Resources
Deferred Inflows
of Resources
Contributions subsequent to measurement date $ 3,050, 502 - Differences between actual and expected experience - 2,358,998 Changes in assumptions 8,198,774 1,012,00 0 Total $ 11,249,276 3,370,998
CITY OF ALHAMBRA
Notes to Basic Financial Statement
June 30, 2022
77 $3,050,502 reported as deferred outflows of resourc es related to contributions subsequent to the measurement date will be recognized as a reduction of the total OPEB liability in the fiscal year ending June 30, 2023. Other amounts reported as deferred o utflows of resources and deferred inflows of resources related to total OPEB liability will be recognized as total OPEB liability expense as follows:
Fiscal
Year Ended
June 30 Amount
2023 $ 634,987
2024 634,987
2025 705,987
2026 1,098,431
2027 1,106,676
Thereafter 646,708
City Council Plan:
For the fiscal year ended June 30, 2022, the City o f Alhambra’s recognized postemployment benefits other than pension expense of $412,242. At June 30, 2022, the City of Alhambra reported deferred outflows of resources and deferred inflows of resou rces related to total OPEB liability from the following sources:
Deferred
Outflow of
Resources
Deferred Inflows
of Resources
Contributions subsequent to measurement date $ 97,856 - Differences between actual and expected experience 3 64,478 - Changes in assumptions 336,104 90,404
Total $ 798,438 90,404
$97,856 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 fiscal year endi ng June 30, 2023. Other amounts reported as deferred o utflows of resources and deferred inflows of resources related to total OPEB liability will be recognized as total OPEB liability expense as follows:
Fiscal
Year Ended
June 30 Amount
2023 $ 217,391
2024 206,974
2025 184,176
2026 1,637
CITY OF ALHAMBRA
Notes to Basic Financial Statement
June 30, 2022
78 (e) Payable to the Total OPEB Liability Plan
At June 30, 2022, there was no outstanding amount o f contribution payable to the postemployment benefits other than pension plans for the fiscal year ended June 30, 2022.
G. Defined Contribution Plan
The City provides pension benefits for all of its p art-time employees not covered by PERS through the Public Agency Retirement Systems (PARS). This is a defined contribution plan created in accordance wit h Internal Revenue Code Sections 401(a) and 501 and a dministered by Phase II Systems. In a defined contribution plan, benefits depend solely on amount s 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 bo th the employee and the City contribute an amount equa l to 3.75% of the employee’s earnings. The City’s contributions for each employee are fully vested. C ontribution requirements are established and may be amended by the City Council.
The City’s payroll for employees covered by the pla n for the fiscal year ended June 30, 2022 was $1,662,185 and the City’s total payroll for the fis cal year was $43,600,100. Both the City and the cov ered employees made the required 3.75% contributions amo unting to $62,329 from each source, or $124,658 in total.
H. Deferred Compensation Plans
The City offers its regular full-time employees a d eferred compensation plan created in accordance wit h Internal Revenue Code Section 457(b). The plan perm its eligible employees to defer a portion of their salary until future years so as to shelter such fun ds from federal and state taxation until withdrawal , usually during their retirement years. The deferred compens ation is not available to employees until terminati on, 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 amoun ts are held in a custodial account for the exclusiv e benefit of the employee participants and their beneficiaries.
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 respons ibility of the plan participants. The City has no l iability for losses under the plan but does have the duty of due care that would be required of an ordinary pru dent investor. Under certain circumstances, employees ma y modify their arrangements with the plan to provid e 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 financi al emergency, the City may approve, upon request, withdrawals from the plan by the participants, along with their allocated contributions. As of June 30, 2022, deferred compensation assets are $32,097,096 and have been excluded from the City’s financial statements.
I. Joint Venture
The City is a participant with the County of Los An geles, 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 Authori ty (the Authority), a joint powers authority, was
CITY OF ALHAMBRA
Notes to Basic Financial Statement
June 30, 2022
79 created to operate and maintain a Metrolink station located adjacent to the California State Universit y at Los Angeles. On dissolution of the Authority, the n et assets will be distributed based on each entity’ s proportion of their respective contributions during the preceding 12 months. As of June 30, 2022, 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 C ity’s equity interest in the Authority is $55,825 at June 30, 2022. Complete financial statements for the Authority can be obtained from the City of Alhambra, 111 South First Street, Alhambra, California 91801.
J. Successor Agency Disclosures
The assets and liabilities of the former Redevelopm ent Agency were transferred to the Successor Agency to the City of Alhambra Redevelopment Agency on Feb ruary 1, 2012, as a result of the dissolution of th e former Redevelopment Agency. The City is acting in a fiduciary capacity for the assets and liabilitie s.
Disclosure related to the certain assets and long-term liabilities are as follows:
1. Notes Receivable
To enhance the redevelopment process, loans were ma de for the development of commercial properties. The nature of these notes is such that ultimate collectability may be in question. The t erms of most of the notes do not require repayment until certain conditions are met or forgiven after a number of years. The timing of these conditions is indeterminate. Accordingly, the total notes receivable balance at June 30, 2022 is $0 which inc ludes an offsetting allowance for receivable determined to be uncollectible.
2. Capital Assets
The capital assets of the Successor at June 30, 2022 were as follows:
Balances at Transfers to Balances at
July 1, 2021 Additions City of Alhambra June 30, 2022
Capital assets, not being depreciated:
Land $ 222,561 - (222,561) - Total capital assets, not being depreciated 222,561 - (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 (435,137) (26,372) 461,509 - Total accumulated depreciation (435,137) (26,372 ) 461,509 - Total capital assets, being depreciated, net 92,301 (26,372) (65,929) - Governmental activities $ 314,862 (26,372) (288,490) -
CITY OF ALHAMBRA
Notes to Basic Financial Statement
June 30, 2022
80 3. Long-Term Liabilities
The long-term liabilities of the Successor at June 30, 2022 were as follows:
Balances, Balances,
July 1, 2021 Additions Retirements June 30, 2022
Tax allocation refunding bonds $ 3,995,000 - (3,995,000) - Add bond premium 52,645 - ( 52,645) - Total long-term liabilities $ 4,047,645 - (4,047,645) -
Tax Allocation Bonds
In December 2013, the Successor Agency issued $25,1 80,000 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 refun d the remaining outstanding amounts of $18,505,000 on the $38,070,000 Tax Allocation Refun ding Bonds, Series 2003, $10,670,000 on the $15,445,000 Tax Allocation Bonds, Series 200 5A, and $4,080,000 on the $7,215,000 Tax Allocation Bonds, Series 2005B. The refunding r esulted 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 $2,49 3,174. As of June 30, 2022 all refunded bonds have been redeemed.
4. Fremont Plaza Retail Project
In May 1996, the City and Agency entered into a Coo peration Agreement with respect to the Fremont Plaza Retail Project (the Project). The City and Su ccessor 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 $24,880,00 0. 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 De velopment Block Grant Fund for share of net proceeds. During the fiscal year, remaining proceed s of $4,410,651 and other project revenues of $1,777,977 retained by the Successor Agency totalin g $6,188,628 were returned to the County of Los Angeles.
Required Supplementary Information (Unaudited)
CITY OF ALHAMBRA
Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual General Fund
For the Fiscal Year Ended June 30, 2022
Variance with
Final Budget
Original Final positive
Budget Budget Actual (negative)
Revenues:
Taxes:
Property taxes $ 14,714,260 15,064,260 17,270,866 2,206,606 Sales tax 25,583,000 27,944,000 31,016,504 3,072,504 Public safety sales tax 852,256 947,000 987,136 40,136 Franchise tax 1,500,000 1,500,000 2,439,225 939,225 Business license tax 1,600,000 1,600,000 1,733,544 133,544 Documentary transfer tax 225,000 225,000 363,376 138,376 Utility users tax 3,600,000 3,600,000 4,311,971 711,971 Other 735,000 735,000 1,004,588 269,588 Total taxes 48,809,516 51,615,260 59,127,210 7,511,950 Licenses and permits:
Building permits 1,570,000 1,570,000 2,321,213 751,213 Parking permits 1,479,000 1,479,000 1,628,722 149,722 Other 74,700 74,700 50,272 (24,428) Total licenses and permits 3,123,700 3,123,700 4,000,207 876,507 Revenues from other agencies:
State motor vehicles 11,137,935 11,137,935 11,247,496 109,561 State police training grants 34,946 34,946 57,084 22,138 Homeland security grants - 993,027 - (993,027) Federal summer food grant 120,000 120,000 191,539 71,539 Coronavirus relief fund - 23,925 23,925 - Other 410,076 1,193,879 250,097 (943,782) Total revenues from other agencies 11,702,957 13,503,712 11,770,141 (1,733,571) Use of money and property:
Investment income 401,700 401,700 (366,984) (768,684) Jail lease revenue 111,000 70,000 65,112 (4,888) Total use of money and property 512,700 471,700 (301,872) (773,572) Charges for services:
Zoning and subdivision 257,000 257,000 121,522 (135,478) Plan checking fees 1,750,000 1,750,000 1,408,648 (341,352) Paramedics 2,135,000 2,070,000 2,236,942 166,942 Park and recreation fees 692,710 682,210 968,591 286,381 Engineering fees and permmits 730,000 730,000 855,135 125,135 Other 936,620 971,620 1,248,613 276,993 Total charges for services 6,501,330 6,460,830 6,839,451 378,621 Fines and forfeitures 2,216,750 2,179,250 2,353,910 174,660 Other revenues
Interfund 2,141,298 2,141,298 2,141,298 - Other 138,050 139,650 402,531 262,881 Total other revenues 2,279,348 2,280,948 2,543,829 262,881 Total revenues 75,146,301 79,635,400 86,332,876 6,697,476 81 CITY OF ALHAMBRA
Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual General Fund
For the Fiscal Year Ended June 30, 2022
Variance with
Final Budget
Original Final positive
Budget Budget Actual (negative)
Expenditures:
Current:
General government:
City Council $ 293,575 293,575 229,728 63,847 City manager 1,580,949 1,792,940 1,431,643 361,297 City clerk 650,599 741,599 554,540 187,059 Communications 299,363 299,363 280,712 18,651 Finance 2,467,092 2,672,579 2,400,070 272,509 City attorney 510,000 722,763 191,215 531,548 Human resources 1,016,584 1,180,383 877,638 302,745 General government buildings 362,752 441,981 351,733 90,248 General services 385,121 385,571 223,525 162,046 Community promotion 261,936 275,000 267,070 7,930 Marketing 262,343 327,776 259,262 68,514 Nondepartmental 281,650 2,574,251 2,595,763 (21,512) Cost allocation (7,940,749) (7,940,749) (6,961,704) (979,045) Total general government 431,215 3,767,032 2,701,195 1,065,837 Public safety:
Police 33,057,632 33,063,620 29,946,609 3,117,011 Police – public safety augmentation 508,140 508,140 460,751 47,389 Parking enforcement 1,733,518 1,742,519 1,708,521 33,998 Fire 20,616,441 20,814,941 20,667,613 147,328 Fire – public safety augmentation 308,366 308,366 306,431 1,935 Disaster preparedness 57,860 47,860 18,670 29,190 Animal control 270,574 270,574 195,135 75,439 Total public safety 56,552,531 56,756,020 53,303,730 3,452,290 Public works:
Administration and engineering 1,127,548 1,134,163 1,039,798 94,365 Housing, health, and community development:
Building and planning 4,734,896 5,136,347 3,894,698 1,241,649 Code enforcement 580,460 580,460 655,278 (74,818) Stormwater Environmental compliance 357,554 357,554 90,118 267,436 Total housing, health, and
community development: 5,672,910 6,074,361 4,640,094 1,434,267 82 CITY OF ALHAMBRA
Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual General Fund
For the Fiscal Year Ended June 30, 2022
Variance with
Final Budget
Original Final positive
Budget Budget Actual (negative)
Culture and recreation:
Public library $ 3,599,991 3,111,833 2,734,804 377,029 Administration 895,289 895,289 841,007 54,282 Community services 721,672 721,672 799,959 (78,287) Recreation services 1,069,333 1,070,804 1,132,782 (61,978) Senior services 236,691 236,691 245,155 (8,464) Park operations 2,591,270 2,640,090 2,600,023 40,067 Lunch program 187,483 227,968 191,793 36,175 Aquatics 523,229 523,229 645,008 (121,779) Senior support 385,131 385,131 358,671 26,460 Total culture and recreation 10,210,089 9,812,707 9,549,202 263,505 Capital outlay:
General government 93,268 474,268 97,763 376,505 Public safety 251,596 1,696,600 324,607 1,371,993 Housing, health, and community development: 10,000 310,000 2,279 307,721 Culture and recreation 267,460 298,241 255,984 42,257 Total capital outlay 622,324 2,779,109 680,633 2,098,476 Debt service:
Principal retirement 138,967 138,967 156,258 (17,291) Interest and fiscal changes 2,025 2,025 5,442 (3,417) Total debt service 140,992 140,992 161,700 (20,708) Total expenditures 74,757,609 80,464,384 72,076,352 8,388,032 Excess (deficiency) of revenues
over expenditures 388,692 (828,984) 14,256,524 15,085,508 Other financing sources (uses):
Transfers in 353,883 353,883 359,369 5,486 Transfers out (6,174,996) (13,099,131) (13,097,990) 1,141 Total other financing sources (uses) (5,821,113) (12,745,248) (12,738,621) 6,627 Net change in fund balances (5,432,421) (13,574,232) 1,517,903 15,092,135 Fund balance at July 1 33,285,858 33,285,858 33,285,858 - Fund balance at June 30 $ 27,853,437 19,711,626 34,803,761 15,092,135 83 CITY OF ALHAMBRA
Statement of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
Housing Assets
For the Fiscal Year Ended June 30, 2022
Variance
with Final
Original Final Actual Positive
Budget Budget Amounts (Negative)
Revenues:
Use of money and property $ 56,900 56,900 (218,906) (275,806) Total revenues 56,900 56,900 (218,906) (275,806) Expenditures:
Current:
Housing, health, and community development 1,681,398 1,710,002 331,018 1,378,984 Total expenditures 1,681,398 1,710,002 331,018 1,378,984 Net change in fund balances (1,624,498) (1,653,102) (549,924) 1,103,178 Fund balance, July 1 11,482,368 11,482,368 11,482,368 - Fund balance at June 30 $ 9,857,870 9,829,266 10,932,444 1,103,178 84 CITY OF ALHAMBRA
Statement of Revenues, Expenditures, and Changes in Fund Balance (Deficit) Budget and Actual
American Rescue Plan Act Fund
For the Fiscal Year Ended June 30, 2022
Variance
with Final
Original Final Actual Positive
Budget Budget Amounts (Negative)
Revenues:
Revenues from other agencies $ - - 4,368,749 4,368,749 Use of money and property - 20,000 (169,002) (189,002)
Total Revenues - 20,000 4,199,747 4,179,747
Expenditures:
Current:
General government - 3,607,562 1,866,773 1,740,789 Public safety - 234,897 519,309 (284,412)
Public works - 30,000 111,091 (81,091)
Housing, health, and community develop - 85,000 56,101 28,899 Culture and recreation - 390,000 413,346 (23,346)
Capital outlay - 13,337,416 1,402,130 11,935,286 Total expenditures - 17,684,875 4,368,750 13,316,125 - (17,664,875) (169,003) 17,495,872
- - - -
Net change in fund balances
Fund balance at July 1
Fund balance (deficit) at June 30 $ - (17,664,875) (169,003) 17,495,872 85 CITY OF ALHAMBRA
Required Supplementary Information (Unaudited)
June 30, 2022
Schedule of Changes in Net Pension Liability and Related Ratios - Miscellaneous Plan Last Ten Fiscal Years*
Fiscal Year 6/30/2015 6/30/2016 6/30/2017 6/30/2018
Measurement Date 6/30/2014 6/30/2015 6/30/2016 6/30/2017 Total Pension Liability:
Service cost 2,793,150 $ 2,731,960 $ 2,608,320 $ 3,035,159 $ Interest on total pension liability 10,386,163 10,712,916 10,977,205 11,262,583 Differences between expected and actual experience - (3,570,385) (4,430,098) (3,089,581) Changes in assumptions - (2,687,738) - 9,509,658 Changes in benefits - - - - Benefit payments, including refunds of employee contributions (5,371,308) (5,297,989) (5,698,413) (6,688,115) Net Change in Total Pension Liability 7,808,005 1,888,764 3,457,014 14,029,704 Total Pension Liability - Beginning of Fiscal Year 139,771,250 147,579,255 149,468,019 152,925,033 Total Pension Liability - End of Fiscal Year (a) 147,579,255 $ 149,468,019 $ 152,925,033 $ 166,954,737 $ Plan Fiduciary Net Position:
Contributions - employer 2,894,718 $ 3,043,790 $ 3,496,464 $ 3,641,443 $ Contributions - employee 1,255,406 1,273,242 1,249,885 1,193,014 Net plan to plan resource movement - - - - Net investment income 17,266,996 2,571,518 651,034 13,033,190 Benefit payments (5,371,308) (5,297,989) (5,698,413) (6,688,115) Administrative expenses - (132,627) (71,365) (172,338) Other miscellaneous income (expense) - - - - Net Change in Plan Fiduciary Net Position 16,045,812 1,457,934 (372,395) 11,007,194 Plan Fiduciary Net Position - Beginning of Fiscal Year 99,594,519 115,640,331 117,098,265 116,725,870 Plan Fiduciary Net Position - End of Fiscal Year (b) 115,640,331 $ 117,098,265 $ 116,725,870 $ 127,733,064 $ Net Pension Liability - Ending (a)-(b) 31,938,924 $ 32,369,754 $ 36,199,163 $ 39,221,673 $ Plan fiduciary net position as a percentage of the
total pension liability 78.36% 78.34% 76.33% 76.51%
Covered payroll 15,778,729 $ 16,090,230 $ 15,579,501 $ 16,204,797 $ Net pension liability as percentage of
covered payroll 202.42% 201.18% 232.35% 242.04%
Notes to Schedule:
* - Fiscal year 2015 was the 1st year of implementation, therefore only eight 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).
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: None in 2019-2021. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Assumptions December 2017. There were no changes in the discount rate. In 2017, the discount rate was reduced from 7.65% to 7.15%. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5% (net of administrative expense) to 7.65% (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5% discount rate.
86 6/30/2019 6/30/2020 6/30/2021 6/30/2022
6/30/2018 6/30/2019 6/30/2020 6/30/2021
2,903,692 $ 2,909,716 $ 2,902,872 $ 3,094,490 $ 11,605,493 12,297,939 12,684,856 13,086,365 (2,626,202) 2,560,475 (1,990,646) (1,926,457) (647,771) - - - 860,120 118,749 - - (7,356,299) (7,657,418) (7,946,919) (8,336,188) 4,739,033 10,229,461 5,650,163 5,918,210 166,954,737 171,693,770 181,923,231 187,573,394 171,693,770 $ 181,923,231 $ 187,573,394 $ 193,491,604 $ 4,191,385 $ 4,855,162 $ 5,529,826 $ 5,957,153 $ 1,245,756 1,212,187 1,242,185 1,329,946 (315) - - - 10,651,580 8,836,046 7,016,084 33,282,087 (7,356,299) (7,657,418) (7,946,919) (8,336,188) (199,043) (96,973) (201,648) (148,519) (377,987) 315 - - 8,155,077 7,149,319 5,639,528 32,084,479 127,733,064 135,888,141 143,037,460 148,676,988 135,888,141 $ 143,037,460 $ 148,676,988 $ 180,761,467 $ 35,805,629 $ 38,885,771 $ 38,896,406 $ 12,730,137 $
79.15% 78.63% 79.26% 93.42%
15,158,135 $ 15,845,539 $ 15,767,910 $ 16,928,281 $ 236.21% 245.41% 246.68% 75.20%
87 CITY OF ALHAMBRA
Required Supplementary Information (Unaudited)
June 30, 2022
Schedule of Contributions - Miscellaneous Plan
Last Ten Fiscal Years*
Fiscal Year 6/30/2015 6/30/2016 6/30/2017
Actuarially determined contribution 2,894,718 $ 3,043,790 $ 3,496,464 $ Contributions in relation to the actuarially determined contributions (2,894,718) (3,043,790) (3,496,464) Contribution deficiency (excess) - $ - $ - $ Covered payroll 16,090,230 $ 15,579,501 $ 16,204,797 $ Contributions as a percentage of covered payroll 17.99% 19.54% 21.58% Notes to Schedule:
Valuation Date 6/30/2013 6/30/2014 6/30/2015
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 eight years are shown.
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 The probabilities of Retirement based on the 2010 CalPERS 88 6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022
4,191,385 $ 4,855,163 $ 5,529,302 $ 5,957,100 $ 6,020,670 $ (4,191,385) (4,855,163) (5,529,302) (5,957,100) (6,020,670) - $ - $ - $ - $ - $ 15,158,135 $ 15,845,539 $ 15,767,910 $ 16,928,281 $ 17,390,573 $
27.65% 30.64% 35.07% 35.19% 34.62%
6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020
Fiscal Year 2022
Methods and Assumptions Used to Determine Contribution Rates:
Single and agent employers Entry Age
Amortization method Level percentage of pay, a summary of the current policy is provided in the table below:
Asset valuation method Direct Rate smoothing
Inflation 2.50%
Payroll growth 2.75%
Projected salary increases Varies by entry age and service Retirement age All other actuarial assumptions used in the June 30, 2019 valuation were based on the results of an actuarial experience study for the period from 1997 to 2015, including updates to salary increase, mortality and retirement rate. The Experience Study report may be accessed on the CalPERS' website at www.calpers.ca.gov under Forms and Publications.
Mortality The mortality table used was developed based on CalPERS’ specific data. The table includes 15 years of mortality improvements using 90 percent of Society of Actuaries' Scale 2016. For more details on this table, please refer to the 2017 experience study report.
Source
(Gain)/Loss Assumption/Method
Driver Investment Non-investment Change Benefit Change G olden Handshake Amortization Period 30 years 30 Years 20 Years 20 Years 5 Years Escalation Rate
-Active Plans 2.75% 2.75% 2.75% 2.75% 2.75%
-Inactive Plans 0% 0% 0% 0% 0%
Ramp Up 5 5 5 0 0
Ramp Down 5 5 5 0 0
89 CITY OF ALHAMBRA
Required Supplementary Information (Unaudited)
June 30, 2022
Schedule of Changes in Net Pension Liability and Related Ratios - Safety Plan Last Ten Fiscal Years*
Fiscal Year 6/30/2015 6/30/2016 6/30/2017 6/30/2018
Measurement Date 6/30/2014 6/30/2015 6/30/2016 6/30/2017 Total Pension Liability:
Service cost 4,268,154 $ 4,055,533 $ 4,222,598 $ 4,482,059 $ Interest on total pension liability 16,567,344 17,120,226 17,618,919 17,937,667 Differences between expected and actual experience - (3,363,167) - (5,540,772) Changes in assumptions - (4,269,785) (4,148,943) 15,154,564 Changes in benefits - - - - Benefit payments, including refunds of employee contributions (9,982,487) (10,418,211) (10,764,823) (11,277,617) Net Change in Total Pension Liability 10,853,011 3,124,596 6,927,751 20,755,901 Total Pension Liability - Beginning of Fiscal Year 223,755,094 234,608,105 237,732,701 244,660,452 Total Pension Liability - End of Fiscal Year (a) 234,608,105 $ 237,732,701 $ 244,660,452 $ 265,416,353 $ Plan Fiduciary Net Position:
Contributions - employer 5,194,226 $ 5,623,821 $ 6,223,922 $ 6,588,203 $ Contributions - employee 1,357,296 1,364,518 1,467,365 1,394,896 Net plan to plan resource movement - - - - Net investment income 25,131,070 3,645,321 846,905 18,294,514 Benefit payments (9,982,487) (10,418,211) (10,764,823) (11,277,617) Administrative expenses - (188,049) (101,842) (243,282) Other miscellaneous income (expense) - - - - Net Change in Plan Fiduciary Net Position 21,700,105 27,400 (2,328,473) 14,756,714 Plan Fiduciary Net Position - Beginning of Fiscal Year 145,378,143 167,078,248 167,105,648 164,777,175 Plan Fiduciary Net Position - End of Fiscal Year (b) 167,078,248 $ 167,105,648 $ 164,777,175 $ 179,533,889 $ Net Pension Liability - Ending (a)-(b) 67,529,857 $ 70,627,053 $ 79,883,277 $ 85,882,464 $ Plan fiduciary net position as a percentage of the
total pension liability 71.22% 70.29% 67.35% 67.64%
Covered payroll 15,169,188 $ 14,967,276 $ 15,613,233 $ 14,960,642 $ Net pension liability as percentage of
covered payroll 445.18% 471.88% 511.64% 574.06%
Notes to Schedule:
* - Fiscal year 2015 was the 1st year of implementation, therefore only eight 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).
Change in Assumptions: None in 2019-2021. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS' Experience Study and Review of Assumptions December 2017. There were no changes in the discount rate. In 2017, the discount rate was reduced f rom 7.65% to 7.15%. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5% (net of administrative expense) to 7.65% (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5% discount rate.
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.
90 6/30/2019 6/30/2020 6/30/2021 6/30/2022
6/30/2018 6/30/2019 6/30/2020 6/30/2021
4,574,740 $ 4,548,708 $ 4,745,815 $ 4,730,835 $ 18,588,276 19,605,942 20,290,311 21,095,197 (317,301) 4,421,389 (327,825) 1,618,199 (1,540,934) - - - 538,740 - - - (12,816,674) (13,859,925) (14,847,674) (15,931,656) 9,026,847 14,716,114 9,860,627 11,512,575 265,416,353 274,443,200 289,159,314 299,019,941 274,443,200 $ 289,159,314 $ 299,019,941 $ 310,532,516 $ 7,327,405 $ 8,156,657 $ 9,082,459 $ 9,976,632 $ 1,411,113 1,458,166 1,633,883 1,668,557 (440) - - - 15,014,998 12,380,116 9,773,312 45,178,383 (12,816,674) (13,859,925) (14,847,674) (15,931,656) (279,763) (135,345) (278,651) (202,807) (531,275) 440 - - 10,125,364 8,000,109 5,363,329 40,689,109 179,533,889 189,659,253 197,659,362 203,022,691 189,659,253 $ 197,659,362 $ 203,022,691 $ 243,711,800 $ 84,783,947 $ 91,499,952 $ 95,997,250 $ 66,820,716 $
69.11% 68.36% 67.90% 78.48%
15,283,776 $ 15,196,807 $ 15,829,936 $ 15,758,944 $ 554.73% 602.10% 606.43% 424.02%
91 CITY OF ALHAMBRA
Required Supplementary Information (Unaudited)
June 30, 2022
Schedule of Contributions - Safety Plan
Last Ten Fiscal Years*
Fiscal Year 6/30/2015 6/30/2016 6/30/2017
Actuarially determined contribution 5,194,226 $ 5,623,821 $ 6,223,922 $ Contributions in relation to the actuarially determined contributions (5,194,226) (5,623,821) (6,223,922) Contribution deficiency (excess) - $ - $ - $ Covered payroll 14,967,276 $ 15,613,233 $ 14,960,642 $ Contributions as a percentage of covered payroll 34.70% 36.02% 41.60% Notes to Schedule:
Valuation Date 6/30/2013 6/30/2014 6/30/2015
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 eight years are shown.
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 The probabilities of Retirement based on the 2010 CalPERS 92 CITY OF ALHAMBRA
Required Supplementary Information (Unaudited)
June 30, 2022
6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022
7,326,640 $ 8,156,657 $ 9,081,818 $ 9,976,632 $ 10,380,883 $ (7,326,640) (8,156,657) (9,081,818) (9,976,632) (10,380,883) - $ - $ - $ - $ - $ 15,283,776 $ 15,196,807 $ 15,829,936 $ 15,758,944 $ 16,884,201 $
47.94% 53.67% 57.37% 63.31% 61.48%
6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020
Fiscal Year 2022
Methods and Assumptions Used to Determine Contribution Rates:
Single and agent employers Entry Age
Amortization method Level percentage of pay, a summary of the current policy is provided in the table below:
Asset valuation method Direct Rate smoothing
Inflation 2.50%
Payroll growth 2.75%
Projected salary increases Varies by entry age and service Retirement age All other actuarial assumptions used in the June 30, 2019 valuation were based on the results of an actuarial experience study for the period from 1997 to 2015, including updates to salary increase, mortality and retirement rate. The Experience Study report may be accessed on the CalPERS' website at www.calpers.ca.gov under Forms and Publications.
Mortality The mortality table used was developed based on CalPERS’ specific data. The table includes 15 years of mortality improvements using 90 percent of Society of Actuaries' Scale 2016. For more details on this table, please refer to the 2017 experience study report.
Source
(Gain)/Loss Assumption/Method
Driver Investment Non-investment Change Benefit Change G olden Handshake Amortization Period 30 years 30 Years 20 Years 20 Years 5 Years Escalation Rate
-Active Plans 2.75% 2.75% 2.75% 2.75% 2.75%
-Inactive Plans 0% 0% 0% 0% 0%
Ramp Up 5 5 5 0 0
Ramp Down 5 5 5 0 0
93 CITY OF ALHAMBRA
Required Supplementary Information (Unaudited)
June 30, 2022
Schedule of Changes in Total Pension Liability and Related Ratios - Other Pension Plan Last Ten Fiscal Years*
Fiscal Year 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022 Measurement Date 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 Total Pension Liability:
Service cost 387,000 $ 517,000 $ 436,284 $ 279,626 $ 293,207 $ 400,735 $ Interest on total pension liability 544,000 484,000 563,678 539,825 519,666 397,682 Differences between expected and actual experience - - (191,107) - 232,595 - Changes in assumptions 2,059,000 (1,647,000) (662,832) 669,770 2,620,384 120,544 Changes in benefits - - (1,222,192) - (171) - Benefit payments (415,000) (472,000) (536,182) (590,625) (617,709) (634,592) Net Change in Total Pension Liability 2,575,000 (1,118,000) (1,612,351) 898,596 3,047,972 284,369 Total Pension Liability - Beginning of Fiscal Year 14,120,000 16,695,000 15,577,000 13,964,649 14,863,245 17,911,217 Total Pension Liability - End of Fiscal Year 16,695,000 $ 15,577,000 $ 13,964,649 $ 14,863,245 $ 17,911,217 $ 18,195,586 $ Covered-employee payroll 33,034,000 $ 32,753,000 $ 25,345,009 $ 24,063,431 $ 22,853,099 $ 23,883,292 $ Net pension liability as percentage of
covered payroll 50.54% 47.56% 55.10% 61.77% 78.38% 76.19% Notes to Schedule:
* - Fiscal year 2017 was the 1st year of implementation, therefore only six years are shown.
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 2022 included a decrease in the discount rate from 2.21% to 2.16%. 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.
There are no assets accumulated in a trust that meets the criteria of GASB codification P22.101 or P52.101 to pay related benefits for the pension plan.
94 CITY OF ALHAMBRA
Required Supplementary Information (Unaudited)
June 30, 2022
Schedule of Contributions - Other Pension Plan
Last Ten Fiscal Years*
Fiscal Year 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022 Actuarially determined contribution 472,000 $ 533,000 $ 590,625 $ 617,709 $ 634,592 $ 670,062 $ Contributions in relation to the actuarially determined contributions (472,000) (533,000) (590,625) (617,709) (634,592) (670,062) Contribution deficiency (excess) - $ - $ - $ - $ - $ - $ Covered-employee payroll 32,753,000 $ 25,345,009 $ 24,063,431 $ 22,853,099 $ 23,883,292 $ 23,848,229 $ Contributions as a percentage of covered payroll 1.44% 2.10% 2.45% 2.70% 2.66% 2.81% Notes to Schedule:
Valuation Date 6/30/2015 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
Fiscal Year 2020
Contribution policy Pay-as-you-go Contribution policy Pay-as-you-go Discount rate 2.85% Discount rate 3.50%
Inflation 2.75% Inflation 2.75%
Mortality (1) Mortality (2)
Investment rate of return N/A Investment rate of return N/A Salary increases 3% Salary increases 3%
Benefit increase No increase Benefit increase No increase Participation 100% Participation 100%
Fiscal Year 2018
Fiscal Year 2021
Contribution policy Pay-as-you-go Contribution policy Pay-as-you-go Discount rate 3.58% Discount rate 2.21%
Inflation 2.75% Inflation 2.75%
Mortality (1) Mortality (2)
Investment rate of return N/A Investment rate of return N/A Salary increases 3% Salary increases 3%
Benefit increase No increase Benefit increase No increase Participation 100% Participation 100%
Fiscal Year 2019
Fiscal Year 2022
Contribution policy Pay-as-you-go Contribution policy Pay-as-you-go Discount rate 3.87% Discount rate 2.16%
Inflation 2.75% Inflation 2.75%
Mortality (2) Mortality (2)
Investment rate of return N/A Investment rate of return N/A Salary increases 3% Salary increases 3%
Benefit increase No increase Benefit increase No increase Participation 100% Participation 100%
(1) - CalPers 1997-2011 Experience Study. Mortality Improvement Scale MP-2016 (2) - CalPers 1997-2015 Experience Study. Mortality Improvement Scale MP-2016 * - Fiscal year 2017 was the 1st year of implementation, therefore only six years are shown. 95 CITY OF ALHAMBRA
Required Supplementary Information (Unaudited)
June 30, 2022
Schedule of Changes in Total OPEB Liability and Related Ratios -PERS Health Plan Last Ten Fiscal Years*
Fiscal Year 6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022 Measurement Date 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 Total OPEB Liability:
Service cost 1,316,000 $ 1,114,494 $ 866,642 $ 987,195 $ 1,441,018 $ Interest on total OPEB liability 704,000 833,370 888,461 899,428 769,203 Differences between expected and actual experience - (1,582,432) - (2,199,290) - Changes in assumptions (2,817,000) 45,732 1,413,060 9,595,951 298,124 Benefit payments (374,000) (442,000) (526,285) (570,573) (688,319) Net Change in Total OPEB Liability (1,171,000) (30,836) 2,641,878 8,712,711 1,820,026 Total OPEB Liability - Beginning of Fiscal Year 23,556,000 22,385,000 22,354,164 24,996,042 33,708,753 Total OPEB Liability - End of Fiscal Year 22,385,000 $ 22,354,164 $ 24,996,042 $ 33,708,753 $ 35,528,779 $ Covered employee payroll 31,193,000 $ 25,659,109 $ 35,258,606 $ 36,642,436 $ 38,496,838 $ Total OPEB liability as percentage of
covered employee payroll 71.76% 87.12% 70.89% 91.99% 92.29% Notes to Schedule:
Changes in assumptions: Fiscal year 2022 included a decrease in the discount rate from 2.21% to 2.16%. 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 five years are shown. 96 CITY OF ALHAMBRA
Required Supplementary Information (Unaudited)
June 30, 2022
Schedule of Changes in Total OPEB Liability and Related Ratios - City Council Plan Last Ten Fiscal Years*
Fiscal Year 6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022 Measurement Date 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 Total OPEB Liability:
Service cost 117,000 $ 103,277 $ 104,366 $ 116,529 $ 132,117 $ Interest on total OPEB liability 39,000 47,749 63,008 63,746 62,561 Differences between expected and actual experience - 340,027 - 438,445 - Changes in assumptions (138,000) (142,172) 85,546 462,634 23,457 Benefit payments (22,000) (51,000) (60,251) (83,545) (91,346) Net Change in Total OPEB Liability (4,000) 297,881 192,669 997,809 126,789 Total OPEB Liability - Beginning of Fiscal Year 1,260,000 1,256,000 1,553,881 1,746,550 2,744,359 Total OPEB Liability - End of Fiscal Year 1,256,000 $ 1,553,881 $ 1,746,550 $ 2,744,359 $ 2,871,148 $ Covered employee payroll 57,000 $ 56,444 $ 55,332 $ 55,932 $ 50,608 $ Total OPEB liability as percentage of
covered employee payroll 2203.51% 2752.96% 3156.49% 4906.60% 5673.31% Notes to Schedule:
Changes in assumptions: Fiscal year 2022 included a decrease in the discount rate from 2.21% to 2.16%. 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 five years are shown. 97 This Page Intentionally Left Blank
98 Supplementary Information (Unaudited)
NONMAJOR SPECIAL REVENUE FUNDS
Measure R Transportation Fund – To account for all revenues and expenditures associated 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 associated 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 expenditures 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.
Proposition C Transportation Fund – To account for all revenues and expenditures associated with the 1/2% sales tax approved 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.
Special Revenue Funds are used to account for the proceeds of specific revenue sources other than Capital Projects 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 Transportation 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 revenues of this fund must be expended for transportation- related items as established by the Los Angeles County Transportation Commission. 99 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.
MTA Local Transportation Fund – To account for local transportation funds received from Los Angeles County Metropolitan Transportation Authority for Valley Blvd Improvements.
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.
Public Works Maintenance and Improvement District Fund – To account for the costs associated with the City’s street lighting 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.
NONMAJOR SPECIAL REVENUE FUNDS (CONTINUED)
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.
Asset Forfeiture 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.
100
NONMAJOR CAPITAL PROJECTS FUNDS
Capital Projects Funds account for financial resources to be used for the acquisition or construction of major capital facilities other than those financed by Enterprise Funds and Trust Funds. Funds included are:
Capital Outlay Fund – To account for future capital projects and acquisitions of the City as determined by the City Council.
NONMAJOR DEBT SERVICE FUNDS
Police Facility Fund – To accumulate monies for the payment of the $27,000,000 Alhambra Capital Improvement Corporation Certificates of Participation, Series 1992, which are due with varying principal and interest amounts until maturity in 2024. Financing is provided by special assessments.
Debt Service Funds are used to account for the accumulation of resources for, and the payment of, general long- term debt principal and interest. Funds included are:
Parking Authority Debt Service Fund – To account for revenues and expenditures used to repay the principal and interest on the Alhambra Parking Authority Lease Revenue Bonds, which are due with varying principal and interest amounts until maturity in 2044. Financing is provided by lease payments from City. 101
CITY OF ALHAMBRA
Combining Balance Sheet
NonMajor Governmental Funds
June 30, 2022
Special Revenue Funds
Law TDA State Proposition A –
Assets Enforcement Bikeway Gas Tax Transportation
Cash and investments $ 290,101 - 1,105,939 4,158,530 Restricted cash and investments - - - - Accounts receivable 120,615 60,000 178,024 6,300 Note receivable - - - - Allowance - - - - Loans receivable - - - - Allowance - - - - Total assets $ 410,716 60,000 1,283,963 4,164,830 Liabilities, Deferred Inflows of Resources,
and Fund Balances (Deficits)
Liabilities:
Accounts payable $ 1,524 - 30,654 97,187 Due to other funds 34,363 60,000 - - Retentions payable - - - - Total liabilities 35,887 60,000 30,654 97,187 Deferred inflows of resources:
Unavailable revenues 120,615 - 11,900 - Fund balances (deficits):
Restricted for:
Law enforcement 254,214 - - - Streets and transportation - - 1,241,409 4,067,643 Air quality - - - - Capital projects - - - - Community development - - - - Police facility - - - - Water quality - - - - Debt service - - - - Assigned to:
Capital projects - - - - Unassigned - - - - Total fund balances (deficits) 254,214 - 1,241,409 4,067,643 Total liabilities and fund balances
(deficits) $ 410,716 60,000 1,283,963 4,164,830 102
Special Revenue Funds
Public Works
Road Maintenance Maintenance and
Proposition C – Measure R - Measure M - & Rehabilitation Improvement Transportation Transportation Transportation Transportation Air Quality District 3,689,279 3,082,985 2,691,115 1,511,314 304,688 9,146,941 - - - - - - - - - 149,399 28,370 234,889 - - - - - - - - - - - - - - - - - - - - - - - - 3,689,279 3,082,985 2,691,115 1,660,713 333,058 9,381,830 123,771 23,687 166,746 2,025 - 752,775 - - - - - - - 33,735 - 84,952 - 53,816 123,771 57,422 166,746 86,977 - 806,591 - - - - 28,370 9,069 - - - - - - 3,565,508 3,025,563 2,524,369 1,573,736 - 8,566,170 - - - - 304,688 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 3,565,508 3,025,563 2,524,369 1,573,736 304,688 8,566,170 3,689,279 3,082,985 2,691,115 1,660,713 333,058 9,381,830 103
CITY OF ALHAMBRA
Combining Balance Sheet
NonMajor Governmental Funds
June 30, 2022
Special Revenue Funds
Home and
Police Disability Rental
Facility Asset Access Rehabilitation
Assets Assessment Forfeiture Compliance Grants
Cash and investments $ 148,320 217,593 34,871 - Restricted cash and investments - - - - Accounts receivable 69,505 - - 214,647 Note receivable - - - 1,290,232 Allowance - - - (1,290,232) Loans receivable - - - 7,418,583 Allowance - - - (7,418,583) Total assets $ 217,825 217,593 34,871 214,647 Liabilities, Deferred Inflows of Resources,
and Fund Balances (Deficits)
Liabilities:
Accounts payable $ 4,522 45,851 25,757 127,638 Due to other funds - - - 70,451 Retentions payable - - - 23,356 Total liabilities 4,522 45,851 25,757 221,445 Deferred inflows of resources:
Unavailable revenues - - - 214,647 Fund balances (deficits):
Restricted for:
Law enforcement - 171,742 - - Streets and transportation - - - - Air quality - - - - Capital projects - - - - Community development - - 9,114 - Police facility 213,303 - - - Water quality - - - - Debt service - - - - Assigned to:
Capital projects - - - - Unassigned - - - (221,445) Total fund balances (deficits) 213,303 171,742 9,114 (221,445) Total liabilities and fund balances
(deficits) $ 217,825 217,593 34,871 214,647 104
Special Revenue Funds Debt Service Funds
Community Transportation Safe Clean MTA
Development Capital Water Local Police Parking
Block Grant Improvement Program Transportation Facility Authority - - 1,646,803 2,089,395 - - - - - - - 1 217,756 209,953 - - - - 209,850 - - - - - (209,850) - - - - - 161,905 - - - - - - - - - - - 379,661 209,953 1,646,803 2,089,395 - 1 4,791 98,237 43,373 - - - 156,145 58,081 - - - - 15,000 47,011 - - - - 175,936 203,329 43,373 - - - 217,756 216,577 - - - - - - - - - - - - - 2,089,395 - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1,603,430 - - - - - - - - 1 - - - - - - (14,031) (209,953) - - - - (14,031) (209,953) 1,603,430 2,089,395 - 1 379,661 209,953 1,646,803 2,089,395 - 1 105
CITY OF ALHAMBRA
Combining Balance Sheet
NonMajor Governmental Funds
June 30, 2022
Capital
Projects Fund
Capital Totals
Assets Outlay 2022
Cash and investments $ 1,950,503 32,068,377
Restricted cash and investments - 1
Accounts receivable - 1,489,458
Note receivable - 1,500,082
Allowance - (1,500,082)
Loans receivable - 7,580,488
Allowance - (7,418,583)
Total assets $ 1,950,503 33,719,741
Liabilities, Deferred Inflows of Resources,
and Fund Balances (Deficits)
Liabilities:
Accounts payable $ 100,069 1,648,607
Due to other funds - 379,040
Retentions payable - 257,870
Total liabilities 100,069 2,285,517
Deferred inflows of resources:
Unavailable revenues - 818,934
Fund balances (deficits):
Restricted for:
Law enforcement - 425,956
Streets and transportation - 26,653,793 Air quality - 304,688
Capital projects - -
Community development - 9,114
Police facility - 213,303
Water quality - 1,603,430
Debt service - 1
Assigned to:
Capital projects 1,850,434 1,850,434
Unassigned - (445,429)
Total fund balances (deficits) 1,850,434 30,615,290 Total liabilities and fund balances
(deficits) $ 1,950,503 33,719,741
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107
CITY OF ALHAMBRA
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances (Deficits)
NonMajor Governmental Funds
For the Fiscal Year Ended June 30, 2022
Special Revenue Funds
Law TDA State Proposition A –
Enforcement Bikeway Gas Tax Transportation
Revenues:
Taxes and special assessments $ - - - - Revenues from other agencies 212,944 60,000 1,798,212 2,191,760 Use of money and property (6,164) 118 (19,080) (80,733) Charges for services - - - 4,275 Other - - 33,884 12,600 Total revenues 206,780 60,118 1,813,016 2,127,902 Expenditures:
Current:
Public safety 161,642 - 1,088,739 - Public works - - 1,354,472 78,319 Housing, health, and community
development - - - 971,866 Culture and recreation - - - 46,291 Capital outlay 189 65,506 37,802 1,109,154 Debt service:
Principal retirement - - - - Interest and fiscal charges - - - - Total expenditures 161,831 65,506 2,481,013 2,205,630 Excess (deficiency) of revenues
over expenditures 44,949 (5,388) (667,997) (77,728) Other financing sources (uses):
Transfers in - - - - Transfers out - - - - Total other financing sources
(uses) - - - - Net change in fund balances 44,949 (5,388) (667,997) (77,728) Fund balances (deficits) at July 1 209,265 5,388 1,909,406 4,145,371 Fund balances (deficits) at June 30 $ 254,214 - 1,241,409 4,067,643 108
Special Revenue Funds
Public Works
Road Maintenance Maintenance and
Proposition C – Measure R - Measure M - & Rehabilitation Improvement Transportation Transportation Transportation Transportation Air Quality District - - - - - 4,458,729 1,818,019 1,363,295 1,542,725 1,716,645 81,505 - (71,449) (63,558) (53,840) (26,566) (6,346) (234,799) - - - - - - - - - - 528 53,544 1,746,570 1,299,737 1,488,885 1,690,079 75,687 4,277,474 - - - - - - 172,760 - 634,441 - - 2,558,202 1,206,182 - - - 3,886 - - - - - - - 483,648 840,933 811,918 2,787,967 47,515 1,810,955 - - - - - - - - - - - - 1,862,590 840,933 1,446,359 2,787,967 51,401 4,369,157 (116,020) 458,804 42,526 (1,097,888) 24,286 (91,683) - - - - - - (276,954) - - - - - (276,954) - - - - - (392,974) 458,804 42,526 (1,097,888) 24,286 (91,683) 3,958,482 2,566,759 2,481,843 2,671,624 280,402 8,657,853 3,565,508 3,025,563 2,524,369 1,573,736 304,688 8,566,170 109
CITY OF ALHAMBRA
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances (Deficits)
NonMajor Governmental Funds
For the Fiscal Year Ended June 30, 2022
Special Revenue Funds
Home and
Police Disability Rental
Facility Asset Access Rehabilitation
Assessment Forfeiture Compliance Grants
Revenues:
Taxes and special assessments $ 2,243,156 - - - Revenues from other agencies - 30,916 - 341,109 Use of money and property (3,806) (4,210) (766) 81,252 Charges for services - - 22,932 - Other - - - - Total revenues 2,239,350 26,706 22,166 422,361 Expenditures:
Current:
Public safety 2,719 30,794 - - Public works - - - - Housing, health, and community
development - - 25,000 618,812 Culture and recreation - - - - Capital outlay 4,522 114,761 - - Debt service:
Principal retirement - - - - Interest and fiscal charges - - - - Total expenditures 7,241 145,555 25,000 618,812 Excess (deficiency) of revenues
over expenditures 2,232,109 (118,849) (2,834) (196,451) Other financing sources (uses):
Transfers in - - - - Transfers out (2,181,475) - - - Total other financing sources
(uses) (2,181,475) - - - Net change in fund balances 50,634 (118,849) (2,834) (196,451) Fund balances (deficits) at July 1 162,669 290,591 11,948 (24,994) Fund balances (deficits) at June 30 $ 213,303 171,742 9,114 (221,445) 110
Special Revenue Funds Debt Service Funds
Community Transportation Safe Clean MTA
Development Capital Water Local Police Parking
Block Grant Improvement Program Transportation Facility Authority - - - - - - 696,918 553,856 860,206 2,138,189 - - 46,228 - (35,911) (48,794) 2 3 - - - - - - - - - - - - 743,146 553,856 824,295 2,089,395 2 3 - - - - - - - - 77,143 - - - 728,278 - - - - - - - - - - - - 1,035,277 - - - - - - - - 1,770,000 150,000 - - - - 321,637 262,619 728,278 1,035,277 77,143 - 2,091,637 412,619 14,868 (481,421) 747,152 2,089,395 (2,091,635) (412,616) - 276,954 - - 2,091,635 412,378 (125,191) (5,486) - - - - (125,191) 271,468 - - 2,091,635 412,378 (110,323) (209,953) 747,152 2,089,395 - (238) 96,292 - 856,278 - - 239 (14,031) (209,953) 1,603,430 2,089,395 - 1 111
CITY OF ALHAMBRA
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances (Deficits)
NonMajor Governmental Funds
For the Fiscal Year Ended June 30, 2022
Capital
Projects Fund
Capital Totals
Outlay 2022
Revenues:
Taxes and special assessments $ - 6,701,885 Revenues from other agencies - 15,406,299 Use of money and property (50,056) (578,475) Charges for services - 27,207
Other 3,979 104,535
Total revenues (46,077) 21,661,451
Expenditures:
Current:
Public safety - 1,283,894
Public works - 4,875,337
Housing, health, and community
development - 3,554,024
Culture and recreation - 46,291
Capital outlay 206,766 9,356,913
Debt service:
Principal retirement 978,137 2,898,137
Interest and fiscal charges 97,959 682,215 Total expenditures 1,282,862 22,696,811
Excess (deficiency) of revenues
over expenditures (1,328,939) (1,035,360)
Other financing sources (uses):
Transfers in 2,693,984 5,474,951
Transfers out - (2,589,106)
Total other financing sources
(uses) 2,693,984 2,885,845
Net change in fund balances 1,365,045 1,850,485 Fund balances (deficits) at July 1 485,389 28,764,805 Fund balances (deficits) at June 30 $ 1,850,434 30,615,290 112
CITY OF ALHAMBRA
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
Law Enforcement
For the Fiscal Year Ended June 30, 2022
Variance
with Final
Original Final Actual Budget Positive
Budget Budget Amounts (Negative)
Revenues:
Revenues from other agencies $ 111,384 211,384 212,944 1,560 Use of money and property 700 700 (6,164) (6,864) Total revenues 112,084 212,084 206,780 (5,304) Expenditures:
Current:
Public safety 195,498 231,157 161,642 69,515 Capital outlay 4,000 4,000 189 3,811 Total expenditures 199,498 235,157 161,831 73,326 Net change in fund balances (87,414) (23,073) 44,949 68,022 Fund balance at July 1 209,265 209,265 209,265 - Fund balance at June 30 $ 121,851 186,192 254,214 68,022 113
CITY OF ALHAMBRA
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
TDA Bikeway
For the Fiscal Year Ended June 30, 2022
Variance
with Final
Original Final Actual Budget Positive
Budget Budget Amounts (Negative)
Revenues:
Revenues from other agencies $ 63,572 63,572 60,000 (3,572) Use of money and property 200 200 118 (82) Total revenues 63,772 63,772 60,118 (3,654) Expenditures:
Capital outlay 60,000 60,000 65,506 (5,506) Net change in fund balances 3,772 3,772 (5,388) (9,160) Fund balance at July 1 5,388 5,388 5,388 - Fund balance at June 30 $ 9,160 9,160 - (9,160) 114
CITY OF ALHAMBRA
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
State Gas Tax
For the Fiscal Year Ended June 30, 2022
Variance
with Final
Original Final Actual Budget Positive
Budget Budget Amounts (Negative)
Revenues:
Revenues from other agencies $ 2,071,277 2,232,687 1,798,212 (434,475) Use of money and property 9,300 9,300 (19,080) (28,380) Other 10,000 10,000 33,884 23,884 Total revenues 2,090,577 2,251,987 1,813,016 (438,971) Expenditures:
Current:
Public safety 1,080,769 1,080,769 1,088,739 (7,970) Public works 1,696,001 1,696,001 1,354,472 341,529 Capital outlay 205,000 210,924 37,802 173,122 Total expenditures 2,981,770 2,987,694 2,481,013 506,681 Net change in fund balances (891,193) (735,707) (667,997) 67,710 Fund balance at July 1 1,909,406 1,909,406 1,909,406 - Fund balance at June 30 $ 1,018,213 1,173,699 1,241,409 67,710 115
CITY OF ALHAMBRA
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
Proposition A - Transportation
For the Fiscal Year Ended June 30, 2022
Variance
with Final
Original Final Actual Budget Positive
Budget Budget Amounts (Negative)
Revenues:
Revenues from other agencies $ 1,752,720 1,752,720 2,191,760 439,040 Use of money and property 18,700 18,700 (80,733) (99,433) Charges for services 60,000 60,000 4,275 (55,725) Other 120,000 120,000 12,600 (107,400) Total revenues 1,951,420 1,951,420 2,127,902 176,482 Expenditures:
Current:
Public works 80,315 72,155 78,319 (6,164) Housing, health, and community development 1,286,488 1,302,199 971,866 330,333 Culture and recreation 70,349 70,349 46,291 24,058 Capital outlay 1,200,000 2,424,319 1,109,154 1,315,165 Total expenditures 2,637,152 3,869,022 2,205,630 1,663,392 Net change in fund balances (685,732) (1,917,602) (77,728) 1,839,874 Fund balance at July 1 4,145,371 4,145,371 4,145,371 - Fund balance at June 30 $ 3,459,639 2,227,769 4,067,643 1,839,874 116
CITY OF ALHAMBRA
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
Proposition C - Transportation
For the Fiscal Year Ended June 30, 2022
Variance
with Final
Original Final Actual Budget Positive
Budget Budget Amounts (Negative)
Revenues:
Revenues from other agencies $ 1,453,835 1,453,835 1,818,019 364,184 Use of money and property 20,300 20,300 (71,449) (91,749) Total revenues 1,474,135 1,474,135 1,746,570 272,435 Expenditures:
Current:
Public works 163,048 154,888 172,760 (17,872) Housing, health, and community development 1,655,881 1,671,592 1,206,182 465,410 Capital outlay 1,010,000 1,439,597 483,648 955,949 Total expenditures 2,828,929 3,266,077 1,862,590 1,403,487 Excess (deficiency) of revenues
over expenditures (1,354,794) (1,791,942) (116,020) 1,675,922 Other financing sources (uses):
Transfers out - (363,000) (276,954) 86,046 Total other financing sources (uses) - (363,000) (276,954) 86,046 Net change in fund balances (1,354,794) (2,154,942) (392,974) 1,761,968 Fund balance at July 1 3,958,482 3,958,482 3,958,482 - Fund balance at June 30 $ 2,603,688 1,803,540 3,565,508 1,761,968 117
CITY OF ALHAMBRA
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
Measure R - Transportation
For the Fiscal Year Ended June 30, 2022
Variance
with Final
Original Final Actual Budget Positive
Budget Budget Amounts (Negative)
Revenues:
Revenues from other agencies $ 1,090,376 1,090,376 1,363,295 272,919 Use of money and property 8,400 8,400 (63,558) (71,958) Total revenues 1,098,776 1,098,776 1,299,737 200,961 Expenditures:
Capital outlay 1,950,000 2,150,505 840,933 1,309,572 Total expenditures 1,950,000 2,150,505 840,933 1,309,572 Net change in fund balances (851,224) (1,051,729) 458,804 1,510,533 Fund balance at July 1 2,566,759 2,566,759 2,566,759 - Fund balance at June 30 $ 1,715,535 1,515,030 3,025,563 1,510,533 118
CITY OF ALHAMBRA
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
Measure M - Transportation
For the Fiscal Year Ended June 30, 2022
Variance
with Final
Original Final Actual Budget Positive
Budget Budget Amounts (Negative)
Revenues:
Revenues from other agencies $ 1,235,760 1,235,760 1,542,725 306,965 Use of money and property 11,000 11,000 (53,840) (64,840) Total revenues 1,246,760 1,246,760 1,488,885 242,125 Expenditures:
Current:
Public works - - 634,441 (634,441) Capital outlay 1,010,000 1,712,438 811,918 900,520 Total expenditures 1,010,000 1,712,438 1,446,359 266,079 Net change in fund balances 236,760 (465,678) 42,526 508,204 Fund balance at July 1 2,481,843 2,481,843 2,481,843 - Fund balance at June 30 $ 2,718,603 2,016,165 2,524,369 508,204 119
CITY OF ALHAMBRA
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
Road Maintenance & Rehabilitation - Transportation
For the Fiscal Year Ended June 30, 2022
Variance
with Final
Original Final Actual Budget Positive
Budget Budget Amounts (Negative)
Revenues:
Revenues from other agencies $ 1,667,300 1,786,619 1,716,645 (69,974) Use of money and property 8,000 8,000 (26,566) (34,566) Total revenues 1,675,300 1,794,619 1,690,079 (104,540) Expenditures:
Current:
Public works - 5,722 - 5,722 Capital outlay 1,699,039 3,022,645 2,787,967 234,678 Total expenditures 1,699,039 3,028,367 2,787,967 240,400 Net change in fund balances (23,739) (1,233,748) (1,097,888) 135,860 Fund balance at July 1 2,671,624 2,671,624 2,671,624 - Fund balance at June 30 $ 2,647,885 1,437,876 1,573,736 135,860 120
CITY OF ALHAMBRA
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
Air Quality
For the Fiscal Year Ended June 30, 2022
Variance
with Final
Original Final Actual Budget Positive
Budget Budget Amounts (Negative)
Revenues:
Revenues from other agencies $ 100,000 100,000 81,505 (18,495) Use of money and property 850 850 (6,346) (7,196) Other - - 528 528 Total revenues 100,850 100,850 75,687 (25,163) Expenditures:
Current:
Housing, health, and community development 10,607 10,607 3,886 6,721 Capital outlay 85,000 122,166 47,515 74,651 Total expenditures 95,607 132,773 51,401 81,372 Net change in fund balances 5,243 (31,923) 24,286 56,209 Fund balance at July 1 280,402 280,402 280,402 - Fund balance at June 30 $ 285,645 248,479 304,688 56,209 121
CITY OF ALHAMBRA
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
Public Works Maintenance and Improvement District
For the Fiscal Year Ended June 30, 2022
Variance
with Final
Original Final Actual Budget Positive
Budget Budget Amounts (Negative)
Revenues:
Taxes and assessments $ 4,080,353 4,080,353 4,458,729 378,376 Use of money and property - - (234,799) (234,799) Other 26,600 26,600 53,544 26,944 Total revenues 4,106,953 4,106,953 4,277,474 170,521 Expenditures:
Current:
Public works 3,650,300 3,720,300 2,558,202 1,162,098 Capital outlay 2,965,600 3,473,648 1,810,955 1,662,693 Total expenditures 6,615,900 7,193,948 4,369,157 2,824,791 Net change in fund balances (2,508,947) (3,086,995) (91,683) 2,995,312 Fund balance at July 1 8,657,853 8,657,853 8,657,853 - Fund balance at June 30 $ 6,148,906 5,570,858 8,566,170 2,995,312 122
CITY OF ALHAMBRA
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
Police Facility Assessment
For the Fiscal Year Ended June 30, 2022
Variance
with Final
Original Final Actual Budget Positive
Budget Budget Amounts (Negative)
Revenues:
Taxes and special assessments $ 2,200,000 2,200,000 2,243,156 43,156 Use of money and property - - (3,806) (3,806) Total revenues 2,200,000 2,200,000 2,239,350 39,350 Expenditures:
Current:
Public safety 7,734 7,734 2,719 5,015 Capital outlay 44,000 44,000 4,522 39,478 Total expenditures 51,734 51,734 7,241 44,493 Excess (deficiency) of revenues
over expenditures 2,148,266 2,148,266 2,232,109 83,843 Other financing sources (uses):
Transfers out (2,213,084) (2,213,084) (2,181,475) 31,609 Total other financing sources (uses) (2,213,084) (2,213,084) (2,181,475) 31,609 Net change in fund balances (64,818) (64,818) 50,634 115,452 Fund balance at July 1 162,669 162,669 162,669 - Fund balance at June 30 $ 97,851 97,851 213,303 115,452 123
CITY OF ALHAMBRA
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
Asset Forfeiture
For the Fiscal Year Ended June 30, 2022
Variance
with Final
Original Final Actual Budget Positive
Budget Budget Amounts (Negative)
Revenues:
Revenues from other agencies $ 35,000 35,000 30,916 (4,084) Use of money and property 2,050 2,050 (4,210) (6,260) Total revenues 37,050 37,050 26,706 (10,344) Expenditures:
Current:
Public Safety 53,957 53,957 30,794 23,163 Capital outlay 210,771 280,384 114,761 165,623 Total expenditures 264,728 334,341 145,555 188,786 Net change in fund balances (227,678) (297,291) (118,849) 178,442 Fund balance at July 1 290,591 290,591 290,591 - Fund balance at June 30 $ 62,913 (6,700) 171,742 178,442 124
CITY OF ALHAMBRA
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
Disability Access Compliance
For the Fiscal Year Ended June 30, 2022
Variance
with Final
Original Final Actual Budget Positive
Budget Budget Amounts (Negative)
Revenues:
Use of money and property $ 100 100 (766) (866) Charges for services 25,000 25,000 22,932 (2,068) Total revenues 25,100 25,100 22,166 (2,934) Expenditures:
Current:
Housing, health, and community development 25,000 25,000 25,000 - Total expenditures 25,000 25,000 25,000 - Net change in fund balances 100 100 (2,834) (2,934) Fund balance at July 1 11,948 11,948 11,948 - Fund balance at June 30 $ 12,048 12,048 9,114 (2,934) 125
CITY OF ALHAMBRA
Schedule of Revenues, Expenditures, and Changes in Fund Deficit Budget and Actual
Home and Rental Rehabilitation Grants
For the Fiscal Year Ended June 30, 2022
Variance
with Final
Original Final Actual Budget Positive
Budget Budget Amounts (Negative)
Revenues:
Revenues from other agencies $ 625,817 625,817 341,109 (284,708) Use of money and property - - 81,252 81,252 Total revenues 625,817 625,817 422,361 (203,456) Expenditures:
Current:
Housing, health, and community development 625,817 1,291,123 618,812 672,311 Total expenditures 625,817 1,291,123 618,812 672,311 Net change in fund balances - (665,306) (196,451) 468,855 Fund balance (deficit) at July 1 (24,994) (24,994) (24,994) - Fund balance (deficit) at June 30 $ (24,994) (690,300) (221,445) 468,855 126
CITY OF ALHAMBRA
Schedule of Revenues, Expenditures, and Changes in Fund Deficit Budget and Actual
Community Development Block Grant
For the Fiscal Year Ended June 30, 2022
Variance
with Final
Original Final Actual Budget Positive
Budget Budget Amounts (Negative)
Revenues:
Intergovernmental $ 1,013,527 1,013,527 696,918 (316,609) Investment earnings 10,000 10,000 46,228 36,228 Total revenues 1,023,527 1,023,527 743,146 (280,381) Expenditures:
Current:
Housing, health, and community development - - 728,278 (728,278) Total expenditures - - 728,278 (728,278) Excess (deficiency) of revenues
over expenditures 1,023,527 1,023,527 14,868 (1,008,659) Other financing sources (uses):
Transfers out - - (125,191) (125,191) Total other financing sources (uses) - - (125,191) (125,191) Net change in fund balances 1,023,527 1,023,527 (110,323) (1,133,850) Fund balance at July 1 96,292 96,292 96,292 - Fund balance (deficit) at June 30 $ 1,119,819 1,119,819 (14,031) (1,133,850) 127
CITY OF ALHAMBRA
Schedule of Revenues, Expenditures, and Changes in Fund Deficit Budget and Actual
Transportation Capital Improvement
For the Fiscal Year Ended June 30, 2022
Variance
with Final
Original Final Actual Budget Positive
Budget Budget Amounts (Negative)
Revenues:
Revenues from other agencies $ 845,337 845,337 553,856 (291,481) Total Revenues 845,337 845,337 553,856 (291,481) Expenditures:
Capital outlay - - 1,035,277 (1,035,277) Total expenditures - - 1,035,277 (1,035,277) Excess (deficiency) of revenues
over expenditures 845,337 845,337 (481,421) (1,326,758) Other financing sources (uses):
Transfers in - 363,000 276,954 (86,046) Transfers out - - (5,486) (5,486) Total other financing sources (uses) - 363,000 271,468 (91,532) Net change in fund balances 845,337 1,208,337 (209,953) (1,418,290) Fund balance at July 1 - - - - Fund balance (deficit) at June 30 $ 845,337 1,208,337 (209,953) (1,418,290) 128
CITY OF ALHAMBRA
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
Safe Clean Water Program
For the Fiscal Year Ended June 30, 2022
Variance
with Final
Original Final Actual Budget Positive
Budget Budget Amounts (Negative)
Revenues:
Intergovernmental $ 860,000 860,000 860,206 206 Investment earnings 7,200 7,200 (35,911) (43,111) Total Revenues 867,200 867,200 824,295 (42,905) Expenditures:
Current:
Public works - 90,254 77,143 13,111 Total expenditures - 90,254 77,143 13,111 Net change in fund balances 867,200 776,946 747,152 (29,794) Fund balance at July 1 856,278 856,278 856,278 - Fund balance at June 30 $ 1,723,478 1,633,224 1,603,430 (29,794) 129
CITY OF ALHAMBRA
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
MTA Local Transportation
For the Fiscal Year Ended June 30, 2022
Variance
with Final
Original Final Actual Budget Positive
Budget Budget Amounts (Negative)
Revenues:
Revenues from other agencies $ - 2,138,189 2,138,189 - Use of money and property - - (48,794) (48,794) Total Revenues - 2,138,189 2,089,395 (48,794) Expenditures:
Current:
Public works - - - - Total expenditures - - - - Net change in fund balances - 2,138,189 2,089,395 (48,794) Fund balance at July 1 - - - - Fund balance at June 30 $ - 2,138,189 2,089,395 (48,794) 130
CITY OF ALHAMBRA
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
Police Facility
For the Fiscal Year Ended June 30, 2022
Variance
with Final
Original Final Actual Budget Positive
Budget Budget Amounts (Negative)
Revenues:
Investment earnings $ - - 2 2 Expenditures:
Debt service:
Principal retirement 1,770,000 1,770,000 1,770,000 - Interest and fiscal charges 321,638 321,638 321,637 1 Total expenditures 2,091,638 2,091,638 2,091,637 1 Excess (deficiency) of revenues
over expenditures (2,091,638) (2,091,638) (2,091,635) 3 Other financing sources (uses):
Transfers In 2,091,638 2,091,638 2,091,635 (3) Total other financing sources (uses) 2,091,638 2,091,638 2,091,635 (3) Net change in fund balances - - - - Fund balance at July 1 - - - - Fund balance at June 30 $ - - - - 131
CITY OF ALHAMBRA
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
Parking Authority
For the Fiscal Year Ended June 30, 2022
Variance
with Final
Original Final Actual Budget Positive
Budget Budget Amounts (Negative)
Revenues:
Use of money and property $ - - 3 3 Expenditures:
Debt service:
Principal retirement 150,000 150,000 150,000 - Interest and fiscal charges 263,519 263,519 262,619 900 Total expenditures 413,519 413,519 412,619 900 Excess (deficiency) of revenues
over expenditures (413,519) (413,519) (412,616) 903 Other financing sources (uses):
Transfers in 414,419 414,419 412,378 (2,041) Total other financing sources (uses) 414,419 414,419 412,378 (2,041) Net change in fund balances 900 900 (238) (1,138) Fund balance at July 1 239 239 239 - Fund balance at June 30 $ 1,139 1,139 1 (1,138) 132
CITY OF ALHAMBRA
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
Capital Outlay
For the Fiscal Year Ended June 30, 2022
Variance
with Final
Original Final Actual Budget Positive
Budget Budget Amounts (Negative)
Revenues:
Revenues from other agencies $ - 1,330,145 - (1,330,145) Use of money and property - - (50,056) (50,056) Other - - 3,979 3,979 Total revenues - 1,330,145 (46,077) (1,376,222) Expenditures:
Capital outlay 1,765,953 2,805,279 206,766 2,598,513 Debt service:
Principal retirement 978,137 978,137 978,137 - Interest and fiscal charges 97,960 97,960 97,959 1 Total expenditures 2,842,050 3,881,376 1,282,862 2,598,514 Excess (deficiency) of revenues
over expenditures (2,842,050) (2,551,231) (1,328,939) 1,222,292 Other financing sources (uses):
Transfers in 2,693,984 2,693,984 2,693,984 - Total other financing sources (uses) 2,693,984 2,693,984 2,693,984 - Net change in fund balances (148,066) 142,753 1,365,045 1,222,292 Fund balance at July 1 485,389 485,389 485,389 - Fund balance at June 30 $ 337,323 628,142 1,850,434 1,222,292 133
INTERNAL SERVICE FUNDS
Internal Service Funds have been established to finance and account for goods and services provided by one City department to other City departments or agencies.
Equipment Fund – This fund accounts for the operation, maintenance, and replacement of certain equipment of the vehicular fleet utilized by governmental operating departments and enterprise activities on a rental-fee basis.
Self-Insurance Fund – This fund administers the City’s self-insured workers’ compensation, health insurance, and general liability programs. The fund collects premiums from departments and employees, records the related liability, and makes benefit payments through outside settlement agents.
Compensated Absences Fund – This fund accounts for the City’s compensated absences liability other than those liabilities accounted for in the Proprietary Funds. The fund assesses amounts from departments and makes final vested compensated absences payments to terminated or retired employees. 134
CITY OF ALHAMBRA
Combining Statement of Net Position (Deficits)
Internal Service Funds
For the Fiscal Year Ended June 30, 2022
Assets and Deferred Outflows of Resources Equipment Self-Insurance Compensated
absences Total
Current assets:
Cash and investments $ 1,169,249 8,761,704 1,425,980 11,356,933 Accounts receivable 6,096 66,446 - 72,542 Prepaid items - 15,199 - 15,199 Total current assets 1,175,345 8,843,349 1,425,980 11,444,674 Capital assets:
Land - 237,950 - 237,950 Buildings and structures 43,162 - - 43,162 Machinery and equipment 7,657,341 - - 7,657,341 Less accumulated depreciation (5,210,138) - - (5,210,138) Total capital assets, net of
accumulated depreciation 2,490,365 237,950 - 2,728,315 Total assets 3,665,710 9,081,299 1,425,980 14,172,989 Deferred outflow of resources:
Deferred amounts from net pensions 149,437 85,441 - 234,878 Deferred amounts from total OPEB 67,496 - - 67,496 Total deferred outflows 216,933 85,441 - 302,374 Liabilities and Deferred Inflows of Resources
Current liabilities:
Accounts payable 135,331 50,508 - 185,839 Due to other funds - 22,512 - 22,512 Compensated absences 9,646 8,006 642,878 660,530 Current portion:
Capital leases payable 107,461 - - 107,461 Self insurance claims payable - 3,244,860 - 3,244,860 Total current liabilities 252,438 3,325,886 642,878 4,221,202 Long-term liabilities (net of current portion)
Capital leases payable 583,905 - - 583,905 Compensated absences 34,977 29,029 2,331,110 2,395,116 Pension liability 696,592 388,839 - 1,085,431 OPEB Liability 213,173 - - 213,173 Self-insurance claims payable - 12,191,068 - 12,191,068 Total long-term obligations 1,528,647 12,608,936 2,331,110 16,468,693 Total liabilities 1,781,085 15,934,822 2,973,988 20,689,895 Deferred inflows of resources:
Deferred amounts from net pensions 284,853 195,766 - 480,619 Deferred amounts from total OPEB 20,226 - - 20,226 Total deferred inflows 305,079 195,766 - 500,845 Net position:
Net Investment in capital assets 1,798,999 237,950 - 2,036,949 Unrestricted (2,520) (7,201,798) (1,548,008) (8,752,326) Total net position $ 1,796,479 (6,963,848) (1,548,008) (6,715,377) 135
CITY OF ALHAMBRA
Combining Statement of Revenues, Expenses, and
Changes in Net Position (Deficits)
Internal Service Funds
For the Fiscal Year Ended June 30, 2022
Compensated
Equipment Self-Insurance Absences Total
Operating revenues:
Charges for services $ 2,267,660 - - 2,267,660 Self-insurance/compensated absences contributions - 12,195,832 396,716 12,592,548 Total operating revenues 2,267,660 12,195,832 396,716 14,860,208 Operating expenses:
Claims expense – liability - 3,024,134 - 3,024,134 Claims expense – workers’ compensation - 2,151,775 - 2,151,775 Claims expense – health insurance - 5,383,101 - 5,383,101 Compensated absences - - 648,017 648,017 Vehicle expense 1,719,819 - - 1,719,819 Depreciation 458,051 - - 458,051 Total operating expenses 2,177,870 10,559,010 648,017 13,384,897 Operating income (loss) 89,790 1,636,822 (251,301) 1,475,311 Nonoperating revenues (expenses):
Interest income (25,566) (189,868) (27,944) (243,378) Interest expense (29,610) - - (29,610) Gain (loss) on disposal of equipment 30,244 - - 30,244 Other income 79,074 108,623 - 187,697 Total nonoperating revenues (expenses) 54,142 (81,245) (27,944) (55,047) Income (loss) before transfers 143,932 1,555,577 (279,245) 1,420,264 Transfers in - 9,924,135 - 9,924,135 Net income (loss) 143,932 11,479,712 (279,245) 11,344,399 Net position at July 1 1,652,547 (18,443,560) (1,268,763) (18,059,776) Net position at June 30 $ 1,796,479 (6,963,848) (1,548,008) (6,715,377) 136
CITY OF ALHAMBRA
Combining Statement of Cash Flows
Internal Service Funds
For the Fiscal Year Ended June 30, 2022
Equipment Self-Insurance
Compensated
Absences
Total
Internal Service
Funds
Cash flows from operating activities:
Cash received from customers $ 2,295,746 12,207,211 396,716 14,899,673 Cash paid for insurance premiums and self-insurance claims - (13,539,721) - (13,539,721) Cash paid to suppliers for goods and services (1,232,049) - - (1,232,049) Cash paid to employees for services (549,707) (317,471) (729,483) (1,596,661) Other operating cash received 79,074 108,623 - 187,697 Net cash provided by (used in) operating activities 593,064 (1,541,358) (332,767) (1,281,061) Cash flows from noncapital financing activities:
Cash paid on loans from other funds - (5,648,620) - (5,648,620) Transfers from other funds - 9,924,135 - 9,924,135 Net cash provided by (used in) noncapital
financing activities - 4,275,515 - 4,275,515 Cash flows from capital and related financing activities:
Acquisitions and construction of capital assets (795,098) - - (795,098) Proceeds from sale of capital assets 35,810 - - 35,810 Proceeds from capital leases 788,473 - - 788,473 Principal paid on capital lease obligations (97,107) - - (97,107) Interest paid on capital lease obligations (29,610) - - (29,610) Net cash used in capital and related financing activities (97,532) - - (97,532) Cash flows from investing activities:
Interest received (25,566) (189,868) (27,944) (243,378) Net increase (decrease) in cash and cash equivalents 469,966 2,544,289 (360,711) 2,653,544 Cash and cash equivalents at July 1 699,283 6,217,415 1,786,691 8,703,389 Cash and cash equivalents at June 30 $ 1,169,249 8,761,704 1,425,980 11,356,933 Cash and investments $ 1,169,249 8,761,704 1,425,980 11,356,933 Noncash investing, capital, and financing activities:
Increase (decrease) in fair value of investments $ (27,888) (217,595) (35,104) (280,587) 137
CITY OF ALHAMBRA
Combining Statement of Cash Flows
Internal Service Funds
For the Fiscal Year Ended June 30, 2022
Equipment Self-Insurance
Compensated
Absences
Total
Internal Service
Funds
Reconciliation of operating income (loss) to net cash provided by (used in) operating activities:
Operating income (loss) $ 89,790 1,636,822 (251,301) 1,475,311 Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities:
Depreciation 458,051 - - 458,051 (Increase) decrease in accounts receivable 28,086 11,379 - 39,465 (Increase) decrease in prepaid items - (9,216) - (9,216) Increase (decrease) in accounts payable 22,096 (119,805) - (97,709) Increase in self-insurance claims liability - (3,110,385) - (3,110,385) Increase (decrease) in compensated absences liability 4,520 6,455 (81,466) (70,491) Increase (decrease) in pension liability (381,072) (270,513) - (651,585) Increase (decrease) in OPEB liability 10,920 - - 10,920 (Increase) decrease in deferred outflows 14,412 13,845 - 28,257 Increase (decrease) in deferred inflows 267,187 191,437 - 458,624 Other operating cash received (paid) 79,074 108,623 - 187,697 Total adjustments 503,274 (3,178,180) (81,466) (2,756,372) Net cash provided by (used in) operating activities $ 593,064 (1,541,358) (332,767) (1,281,061) 138
Statistical Section (Unaudited)
CITY OF ALHAMBRA
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
2013 2014 2015 2016
Net investment in capital assets $ 119,554,523 119,910,993 119,683,405 117,400,979 24,880,029 24,277,963 23,216,172 24,558,784 Unrestricted (deficit) (345,349) (6,732,168) (99,760,038) (85,151,340) $ 144,089,203 137,456,788 43,139,539 56,808,423 Net investment in capital assets $ 36,630,591 36,963,342 38,681,372 44,495,807 1,160,340 1,160,870 1,160,870 1,192,524 Unrestricted (deficit) 25,477,477 30,888,967 22,645,476 18,270,056 $ 63,268,408 69,013,179 62,487,718 63,958,387 Net investment in capital assets $ 156,185,114 156,874,335 158,364,777 161,896,786 26,040,369 25,438,833 24,377,042 25,751,308 Unrestricted (deficit) 25,132,128 24,156,799 (77,114,562) (66,881,284) $ 207,357,611 206,469,967 105,627,257 120,766,810 The Alhambra Redevelopment Agency was dissolved and certain assets were transferred to the City as of February 1, 2012 resulting in an extraordinary gain and an increase to unrestricted net postion in fiscal year 2012.
The City implemented GASB Statement Number 68, Accoutning and Financial Reporting for Pensions, effective July 1, 2014, and GASB Statement Number 75, Accounting and Financial Reporting for Postemployment Benefits Other than Pensions, effective July 1, 2017. The City's unrestricted net positon decreased in fiscal year 2015 and 2018 as a result.
Source: City of Alhambra Finance Department
Restricted
Primary government
Restricted
Total primary government net position
Total business-type activities net position
Businesss-type activities
Governmental activities
Restricted
Total government activities net position
140
2017 2018 2019 2020 2021 2022
115,421,743 120,842,429 124,695,359 127,671,780 128,928,306 137,047,403 25,084,068 31,144,779 35,066,089 35,976,645 40,202,369 40,431,482 (95,213,715) (115,404,022) (115,692,685) (124,574,496) (122,206,910) (100,575,254) 45,292,096 36,583,186 44,068,763 39,073,929 46,923,765 76,903,631 45,479,549 53,139,446 63,518,023 61,130,751 65,976,917 69,821,842 - - - - - 1,123 19,400,292 11,637,079 4,036,700 5,597,266 2,502,217 4,702,498 64,879,841 64,776,525 67,554,723 66,728,017 68,479,134 74,525,463 160,901,292 173,981,875 188,213,382 188,802,531 194,905,223 206,869,245 25,084,068 31,144,779 35,066,089 35,976,645 40,202,369 40,432,605 (75,813,423) (103,766,943) (111,655,985) (118,977,230) (119,704,693) (95,872,756) 110,171,937 101,359,711 111,623,486 105,801,946 115,402,899 151,429,094 141
CITY OF ALHAMBRA
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
2013 2014 2015 2016
$ 1,206,489 1,309,345 1,598,123 1,041,083 43,666,780 43,976,801 46,458,791 42,918,861 Public works 9,946,710 8,415,715 8,023,192 7,006,245 Housing, health, and community development 8,683,130 8,139,588 7,650,827 8,487,433 Culture and recreation 8,913,765 9,519,514 9,279,212 9,052,940 Interest on long-term debt 1,355,529 1,398,665 1,249,673 1,135,837 73,772,403 72,759,628 74,259,818 69,642,399 Water 18,530,841 16,863,678 16,510,569 16,311,997 Sewer and storm drain 1,788,731 1,851,342 1,974,071 3,263,093 Sanitation 8,606,409 8,694,414 8,564,911 8,618,426 Golf course/clubhouse 1,621,155 2,321,926 1,478,101 1,484,380 30,547,136 29,731,360 28,527,652 29,677,896 Total primary government expenses 104,319,539 102,490,988 102,787,470 99,320,295 Charges for services:
General government 1,249,282 1,771,545 1,980,803 1,730,037 Public safety 4,974,492 4,768,708 4,783,375 4,848,663 Public works 901,502 730,946 808,084 686,121 Housing, health, and community development 3,139,965 4,107,468 4,712,569 2,878,375 Culture and recreation 699,061 652,413 715,831 769,481 Operating grants and contributions 9,371,187 8,035,043 9,416,083 7,787,874 Capital grants and contributions 1,992,813 890,309 951,304 1,116,073 22,328,302 20,956,432 23,368,049 19,816,624 Charges for services:
Water 17,770,857 20,138,797 17,590,510 15,662,647 Sewer and storm drain 5,358,378 5,316,389 5,257,713 5,007,289 Sanitation 8,639,045 8,586,339 8,675,760 8,733,400 Golf course/clubhouse 1,785,118 1,768,206 1,667,428 1,624,973 Operating grants and contributions 22,626 22,240 22,489 - Capital grants and contributions - - - 233,000 33,576,024 35,831,971 33,213,900 31,261,309 55,904,326 56,788,403 56,581,949 51,077,933 (51,444,101) (51,803,196) (50,891,769) (49,825,775) 3,028,888 6,100,611 4,686,248 1,583,413 (48,415,213) (45,702,585) (46,205,521) (48,242,362) Governmental activities:
Expenses
General government
Public safety
Total government activities expenses
Total business-type activities program revenues
Total governmental activities program revenues
Businesss-type activities:
Businesss-type activities:
Program Revenues
Total business-type activities expenses
Governmental activities:
Total primary government program revenues
Total government activities expenses
Net (expense) revenue
Government activities:
General government
Business-type activities
142
2017 2018 2019 2020 2021 2022
1,204,966 2,254,771 1,670,225 2,238,731 2,100,020 4,406,807 48,449,596 52,793,851 53,128,755 60,038,501 59,203,389 49,041,823 8,643,223 8,721,130 8,428,277 9,467,616 10,215,124 11,953,401 7,640,825 8,259,246 8,115,565 8,611,381 10,288,135 8,340,153 10,371,792 12,602,723 11,318,916 11,665,715 10,740,729 9,923,630 1,036,198 886,838 706,775 588,478 648,865 384,640 77,346,600 85,518,559 83,368,513 92,610,422 93,196,262 84,050,454 17,159,580 17,748,467 17,641,900 18,447,582 17,708,184 15,824,242 2,339,224 3,480,155 4,405,283 5,399,388 5,321,402 5,349,641 8,942,478 9,244,338 9,198,775 9,993,792 10,231,848 319,653 1,677,903 1,638,735 1,249,912 601,945 559,277 82,835 30,119,185 32,111,695 32,495,870 34,442,707 33,820,711 21,576,371 107,465,785 117,630,254 115,864,383 127,053,129 127,016,973 105,626,825 1,625,676 1,611,247 1,612,968 1,704,538 1,879,204 1,670,666 4,845,879 4,767,875 4,875,342 4,628,548 4,988,397 5,249,419 710,766 861,322 931,090 865,831 1,895,300 850,704 4,458,206 4,500,184 3,994,938 4,294,640 7,660,449 4,535,125 803,866 948,396 968,955 611,865 593,882 1,068,978 7,772,546 9,846,179 11,103,895 7,454,002 7,979,528 12,942,487 1,011,554 3,745,923 5,413,620 3,910,473 4,002,815 7,344,310 21,228,493 26,281,126 28,900,808 23,469,897 28,999,575 33,661,689 16,566,259 17,552,925 16,661,203 16,699,805 17,998,273 16,918,978 5,002,317 5,208,405 5,957,886 6,840,960 7,806,622 8,092,422 8,960,776 9,158,889 9,404,790 9,689,357 9,380,426 1,853,621 1,646,587 1,628,346 1,182,023 347,893 258,495 799,392 - - - - 171,632 228,632 - - - - - 69,999 32,175,939 33,548,565 33,205,902 33,578,015 35,615,448 27,963,044 53,404,432 59,829,691 62,106,710 57,047,912 64,615,023 61,624,733 (56,118,107) (59,237,433) (54,467,705) (69,140,525) (64,196,687) (50,388,765) 2,056,754 1,436,870 710,032 (864,692) 1,794,737 6,386,673 (54,061,353) (57,800,563) (53,757,673) (70,005,217) (62,401,950) (44,002,092) 143
CITY OF ALHAMBRA
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
2013 2014 2015
Taxes
17,209,958 15,983,618 25,695,352
14,681,954 15,103,394 15,672,583
4,306,280 4,176,807 4,200,198
Franchise tax 1,383,051 1,625,107 1,703,961 Business license tax 1,467,043 1,544,170 1,703,822 511,096 654,609 1,343,268
7,373,428 7,695,977 37,113
97,462 140,478 236,388
6,387,245 5,778,243 4,412,511
Gains on sale of property - - - Return of sale proceeds - - - 425,084 730,070 918,102
53,842,601 53,432,473 55,923,298
Business-type activities:
108,708 142,339 257,655
269,937 231,891 564,699
- - -
(425,084) (730,070) (918,102)
(46,439) (355,840) (95,748)
53,796,162 53,076,633 55,827,550
2,398,500 1,629,277 5,031,529
2,982,449 5,744,771 4,590,500
$ 5,380,949 7,374,048 9,622,029
Total primary government
Miscellaneous
Total governmental activities
Governmental activities:
Unrestricted intergovernmental
Other taxes
Property taxes and assessments
Transfers
Sales taxes
Total business-type activities
Change in net position
Source: City of Alhambra Finance Department
Businesss-type activities:
Governmental activities:
Total primary government
Unrestricted investment earnings
Unrestricted investment earnings
Transfers
Miscellaneous
Utility users tax
General revenues and other changes in net position
144
2016 2017 2018 2019 2020 2021 2022
17,221,634 18,061,055 19,008,940 19,764,777 20,512,645 21,957,338 23,972,751 16,811,427 16,977,165 17,247,093 18,030,263 16,959,059 27,111,492 31,016,504 3,674,579 3,457,468 3,884,135 3,728,369 3,941,558 3,840,748 4,311,971 1,634,312 1,660,466 1,679,409 1,548,343 1,823,926 1,932,311 2,439,225 1,733,813 1,668,051 1,667,331 1,705,454 1,808,632 1,683,982 1,733,544 966,689 1,288,457 1,325,738 929,537 1,268,327 1,075,531 2,235,100 8,411,728 8,879,448 9,335,408 9,953,724 10,490,506 10,920,149 11,247,496 298,567 319,457 410,811 1,156,071 1,168,713 81,432 (1,300,463) 4,806,816 4,050,087 7,560,072 5,868,719 5,420,548 3,343,750 4,616,646 7,067,037 685,073 - - - - 24,498 - (6,546,354) - - - - - 868,057 808,050 436,375 (731,975) 751,777 99,790 71,359 63,494,659 51,308,423 62,555,312 61,953,282 64,145,691 72,046,523 80,368,631 310,702 283,950 253,300 1,036,147 556,551 24,295 (443,220) 444,611 354,543 333,986 300,044 211,675 31,875 161,285 - - - - - - 12,950 (868,057) (808,050) (436,375) 731,975 (751,777) (99,790) (71,359) (112,744) (169,557) 150,911 2,068,166 16,449 (43,620) (340,344) 63,381,915 51,138,866 62,706,223 64,021,448 64,162,140 72,002,903 80,028,287 13,668,884 (4,809,684) 3,317,879 7,485,577 (4,994,834) 21,657,758 29,979,866 1,470,669 1,887,197 1,587,781 2,778,198 (848,243) 6,343,053 6,046,329 15,139,553 (2,922,487) 4,905,660 10,263,775 (5,843,077) 28,000,811 36,026,195 145
CITY OF ALHAMBRA
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
2013 2014 2015 2016
Nonspendable $ 367,253 229,879 241,014 204,108 Restricted 29,217 9,338 80,763 132,155 Committed 9,066,012 9,199,106 10,092,235 9,752,721 Assigned 4,750,000 8,615,000 9,155,109 12,529,059 Unassigned 559,597 422,010 711,308 667,960 14,772,079 18,475,333 20,280,429 23,286,003 Nonspendable 6,379,987 - - - Restricted 16,009,120 23,666,876 22,740,138 31,477,928 Assigned - - - 109,764 Unassigned (468,941) (227,422) (351,569) (118,756) Total all other governmental funds 21,920,166 23,439,454 22,388,569 31,468,936 Total fund balances of governmental funds $ 36,692,245 41,914,787 42,668,998 54,754,939 Source: City of Alhambra Finance Department
All other governmental funds
Total general fund
General Fund
146
2017 2018 2019 2020 2021 2022
183,620 335,128 96,237 630,450 494,139 369,087 96,298 109,827 60,541 72,911 75,292 118,800 9,778,291 20,675,889 20,252,160 20,014,212 20,138,187 17,206,440 12,977,582 4,292,481 5,272,303 3,507,905 12,313,967 15,590,777 492,831 - 33,542 (180,594) 264,273 1,518,657 23,528,622 25,413,325 25,714,783 24,044,884 33,285,858 34,803,761 - - 35,080 - 35,000 - 24,747,138 29,209,946 33,162,551 34,837,183 39,751,778 40,142,729 488,619 794,402 605,284 909,674 485,389 1,850,434 (1,647,391) (5,147,225) (20,382) (650,652) (24,994) (614,432) 23,588,366 24,857,123 33,782,533 35,096,205 40,247,173 41,378,731 47,116,988 50,270,448 59,497,316 59,141,089 73,533,031 76,182,492 147
CITY OF ALHAMBRA
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
2013 2014 2015 2016
Revenues
Taxes and assessments $ 39,471,603 39,255,283 42,127,913 43,120,375 Licenses and permits 2,363,316 3,747,136 3,597,720 2,541,139 Intergovernmental 17,861,083 16,054,914 18,559,631 17,093,372 Investment earnings 975,001 1,105,703 905,885 898,483 Charges for services 5,516,889 4,765,806 5,936,547 5,207,527 Fines and forfeitures 2,691,271 2,586,402 2,556,868 2,523,435 Other 5,856,252 6,017,557 4,447,961 4,004,789 Total revenues 74,735,415 73,532,801 78,132,525 75,389,120 Expenditures
Current:
General government 805,258 615,581 834,519 649,203 Public safety 40,737,400 41,863,526 42,680,608 44,118,244 Public works 3,309,247 4,074,220 3,990,566 3,927,835 Housing, health, and community development 7,319,093 8,051,158 7,217,479 8,322,877 Culture and recreation 7,329,956 7,969,674 7,677,061 8,063,827 Capital outlay 5,056,504 7,578,905 8,435,018 2,787,864 Debt service
Principal retirement 3,469,852 3,352,301 2,799,611 2,136,581 Interest and fiscal charges 1,634,600 1,545,838 1,539,872 1,403,415 Bond issuance costs - 303,130 - - Total expenditures 69,661,910 75,354,333 75,174,734 71,409,846 Excess (deficiency) of revenues over expenditures 5,073,505 (1,821,532) 2,957,791 3,979,274 Other financing sources (uses)
Transfers in 6,389,865 6,062,993 6,825,538 6,196,182 Transfers out (5,661,429) (5,236,768) (9,047,169) (5,171,315) Issuance of debt - 6,565,000 - - Bond discount - (59,019) - - Capital lease obligations 674,062 - 14,304 - Sale of capital assets 1,589,801 53,065 3,747 14,763 Total other financing sources (uses) 2,992,299 7,385,271 (2,203,580) 1,039,630 Special item:
Sale of property - - - 7,067,037 Return of sale proceeds - - - - Net change in fund balances $ 8,065,804 5,563,739 754,211 12,085,941 Debt service as a percentage of
noncapital expenditures 7.9% 7.5% 6.3% 5.1%
Source: City of Alhambra Finance Department
148
2017 2018 2019 2020 2021 2022
43,277,759 44,694,184 45,787,492 45,867,897 57,637,455 65,829,095 3,421,928 4,025,336 3,051,470 3,267,037 4,097,829 4,000,207 15,500,989 23,214,151 27,332,984 20,839,334 27,174,049 31,545,189 877,653 714,120 1,690,020 1,662,990 382,717 (1,268,255) 6,312,194 5,777,488 6,611,735 6,551,664 6,649,815 6,866,658 2,566,037 2,500,167 2,557,643 1,866,471 2,162,047 2,353,910 3,994,309 6,764,016 5,324,584 5,240,164 3,193,165 2,648,364 75,950,869 87,689,462 92,355,928 85,295,557 101,297,077 111,975,168 829,642 892,053 911,639 970,475 905,505 4,567,968 46,210,089 47,622,703 48,867,581 51,821,955 52,712,987 55,106,933 3,846,802 4,208,625 4,341,105 4,328,843 5,044,927 6,026,226 7,464,293 8,091,908 8,009,023 8,373,689 10,109,429 8,581,237 8,478,211 8,848,921 9,249,755 9,172,712 8,734,105 10,008,839 7,296,333 11,802,251 8,229,586 10,544,541 5,735,670 11,439,676 2,415,048 2,547,911 2,705,828 2,385,480 2,880,868 3,054,395 1,303,740 1,160,308 1,007,655 906,441 784,670 687,657 - - - - - - 77,844,158 85,174,680 83,322,172 88,504,136 86,908,161 99,472,931 (1,893,289) 2,514,782 9,033,756 (3,208,579) 14,388,916 12,502,237 6,074,781 7,556,990 6,649,023 6,600,288 4,561,784 5,834,320 (7,104,910) (6,950,252) (7,201,845) (5,658,962) (4,564,966) (15,687,096) - - 738,575 1,825,129 - - - - - - - - 1,143,715 - - - - - 3,033 31,940 7,359 85,897 6,208 - 116,619 638,678 193,112 2,852,352 3,026 (9,852,776) 685,073 - - - - - (6,546,354) - - - - - (7,637,951) 3,153,460 9,226,868 (356,227) 14,391,942 2,649,461
5.1% 4.8% 4.8% 4.1% 4.4% 4.2%
149
CITY OF ALHAMBRA
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
Fiscal year Taxable Total
ended Secured Unsecured assessed direct tax
June 30, government valuations Exemptions value rate
2013 $ 7,121,777,461 159,173,191 (170,766,894) 7,110,183,758 0.27638 2014 7,449,905,865 154,125,833 (173,280,405) 7,430,751,293 0.15913 2015 7,798,374,828 156,230,224 (169,055,883) 7,785,549,169 0.15936 2016 8,180,383,058 153,901,981 (205,525,227) 8,128,759,812 0.15958 2017 8,614,331,127 155,338,883 (190,708,352) 8,578,961,658 0.15977 2018 9,037,174,800 156,725,298 (179,143,699) 9,014,756,399 0.15933 2019 9,617,473,528 169,668,677 (196,993,660) 9,590,148,545 0.16095 2020 10,085,263,264 178,318,788 (150,273,797) 10,113,308,255 0.16047 2021 10,532,360,113 181,621,302 (178,749,573) 10,535,231,842 0.16072 2022 10,613,220,412 185,787,903 (195,113,425) 10,603,894,890 0.16107 Note:
City
Source: Los Angeles County Auditor-Controller.
In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum increase of 2%). With few exceptions, property is only reassessed at the time it is sold to a new owner and the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.
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CITY OF ALHAMBRA
Direct and Overlapping Property Tax Rates
(Rate Per $100 Of Taxable Value)
Last Ten Fiscal Years
Agency 2012/13 2013/14 2014/15 2015/16 2016/17
Basic Levy (1) 1.00000 1.00000 1.00000 1.00000 1.00000
Alhambra Unified School District 0.06228 0.04906 0.04985 0.04926 0.03615 Garvey - Alhambra 0.00532 0.01760 0.01609 0.01633 0.02496 La Community College District 0.04875 0.04454 0.04017 0.03575 0.03596 Metropolitan Water District 0.01800 0.01800 0.01800 0.01800 0.02300 San Gabriel Unified 0.10523 0.10082 0.11444 0.10684 0.10534 Total Direct & Overlapping (2) Tax Rates 1.23958 1.23002 1.23855 1.22618 1.22541 City's Share of 1% Levy Per Prop 13 (3) 0.16425 0.16425 0.16425 0.16425 0.16425 Redevelopment Rate (4)
— — — — —
Total Direct Rate (5) 0.27638 0.15913 0.15936 0.15958 0.15977 Notes:
(1) In 1978, California voters passed Proposition 13 which set property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount property owners are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds. (2) Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all city property owners.
(3) City's share of 1% Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the city. ERAF general fund tax shifts may not be included in tax ratio figures. (4) RDA rate is based on the largest RDA tax rate area (TRA) and includes only rate(s) from indebtedness adopted prior to 1989 per California State statute. RDA direct and overlapping rates are applied onlyto the incremental property values. The approval of ABX1 26 eliminated Redevelopment from the State of California for the fiscal year 2012/13 and years thereafter. (5) Total Direct Rate is the weighted average of all individual direct rates applied by the government preparing the statiscal section information and excludes revenues derived from aircraft. Beginning in 2013/14 the Total Direct Rate no longer includes revenue generated from the former redevelopment tax rate areas. Challenged to recognized enforceable obligations are assumed to have been resolved during 2012/13. For the purposes of this report, residual revenue is assumed to be distributed to the City in the same proportions as general fund revenue.
Source: County of Los Angeles Tax Assessor and the HdL Companies. 152
2017/18 2018/19 2019/20 2020/21 2021/22
1.00000 1.00000 1.00000 1.00000 1.00000
0.05786 0.05404 0.04501 0.04509 0.04405
0.04514 0.04261 0.03395 0.03553 0.02741
0.04599 0.04621 0.02717 0.04016 0.04376
0.03000 0.03000 0.03000 0.03000 0.03000
0.10078 0.10563 0.09682 0.09862 0.10185
1.27977 1.27849 1.23295 1.24940 1.24707
0.16425 0.16425 0.16425 0.16425 0.16425
— — — — —
0.15933 0.16095 0.16047 0.16072 0.16107
153
CITY OF ALHAMBRA
Property Tax Levies and Collections
Last Ten Fiscal Years
(Unaudited)
Fiscal Taxes Levied Collections in
Year ended for the Percent Subsequent Percent
June 30 Fiscal Year Amount of Levy Years Amount (1) of Levy (1) 2013 $ 8,443,000 $ 8,121,000 96 $ 549,656 $ 8,670,656 103 2014 8,813,808 8,618,285 98 718,398 9,336,683 106 2015 9,364,622 9,097,275 97 219,467 9,316,742 99 2016 9,797,283 9,483,239 97 249,463 9,732,702 99 2017 10,324,492 9,921,353 96 300,537 10,221,890 99 2018 10,758,822 10,155,157 94 399,568 10,554,725 98 2019 10,991,380 10,393,526 95 588,887 10,982,413 100 2020 12,036,302 11,461,490 95 522,062 11,983,552 100 2021 12,540,761 11,927,622 95 538,183 12,465,805 99 2022 12,873,160 12,001,915 93 580,326 12,582,241 98 (1) The City of Alhambra relies on information provided by the Los Angeles County Tax Assessor which does not clearly identify the year collected, thus the percentage of total collections to date to taxes levied for year may exceed 100% Source: Los Angeles County Tax Assessor.
Collected within the
Fiscal Year of Levy Total Collections to Date
154
CITY OF ALHAMBRA
Principal Property Taxpayers
Current Year and Nine Years Ago
Percentage Percentage
of total of total
Assessed assessed Assessed assessed
valuation valuation valuation valuation
Alhambra Holdings LLC $ 182,613,414 1.72% $ — 0.00% Elite-TRC Alhambra Community LLC 179,223,882 1.69% — 0.00% Costco Wholesale Corporation 43,382,253 0.41% — 0.00% CFT NV Development LLC 27,209,904 0.26% — 0.00%
Lennar Homes of California Inc 25,317,423 0.24% — 0.00% Craig T Clifford 24,781,975 0.23% — 0.00%
24,475,970 0.23% — 0.00%
Emcore Corporation 24,239,228 0.23% — 0.00%
Stanley A Sirott Trust 23,987,779 0.23% — 0.00%
Home Depot USA Inc. 23,756,946 0.22% — 0.00%
Alhambra Office Community LLC 0.00% 154,005,364 2.17% Costco Wholesale Corporation — 0.00% 37,526,711 0.53% Tag 2 Medical Investment Group LLC — 0.00% 21,930,000 0.31% Alhambra Realty LLC — 0.00% 21,195,648 0.30%
Home Depot USA Inc. — 0.00% 21,010,003 0.30%
Bank Alhambra Property LLC — 0.00% 19,894,500 0.28% Front Porch Communities and Services — 0.00% 19,006,828 0.27% Kohls Department Stores Inc. — 0.00% 18,778,381 0.26% Wayne C. & Millicent J. Tam Trust — 0.00% 15,823,951 0.22% Medical Property Partners LLC — 0.00% 14,950,049 0.21% Total $ 578,988,774 5.46% $ 344,121,435 4.84%
Source: County of Los Angeles Tax Assessor and the HdL Companies.
Crystal Cal No 1 LLC
2022 2013
155
CITY OF ALHAMBRA
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Fiscal Year Certificates of Total Percentage Debt
Ended Participation/ Assessment Notes, Loan, Capital Lease Primary of Personal Per June 30 Lease Revenue Bonds Bonds and Advances Obligations Revenue Bonds Loans Government Income Capita 2013 $ 20,197,309 3,155,000 2,828,396 599,697 11,078,098 1,174,688 39,033,188 N/A 463 2014 22,552,374 2,705,000 1,827,334 506,338 10,400,512 978,907 38,970,465 N/A 460 2015 20,549,342 2,225,000 1,613,160 420,265 9,695,106 783,126 35,285,999 N/A 416 2016 19,251,308 1,715,000 1,390,555 316,289 8,984,641 587,345 32,245,138 N/A 372 2017 17,868,275 1,175,000 1,159,186 1,201,325 7,342,598 391,563 29,137,947 N/A 335 2018 16,400,242 605,000 918,708 933,892 6,535,085 195,781 25,588,708 N/A 295 2019 14,865,000 - 668,763 1,406,584 13,885,411 - 30,825,758 N/A 355 2020 13,145,000 - 408,978 2,826,018 12,870,332 - 29,250,328 N/A 337 2021 11,315,000 - 138,965 2,045,163 11,815,253 - 25,314,381 N/A 293 2022 9,353,110 - - 1,741,100 10,705,175 - 21,799,385 N/A 266 N/A - Not available
Source: City of Alhambra Finance Department
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
Business-type Activities
156
Percent
Gross bonded applicable Net bonded
debt balance to city debt
Overlapping debt:
*Metropolitan Water District $ 9,835,780 0.004 $ 403 L.A. CCD DS 2003 Taxable Series 2004B 2,115,000 1.079 22,831 L.A. CCD DS 2001 Taxable Series 2004A 31,555,000 1.079 340,631 LA CCD DS 2008, 2009 Taxable Series B 75,000,000 1.079 809,612 125,000,000 1.079 1,349,354
900,000,000 1.079 9,715,347
LA CCD DS 2013 13,000,000 1.079 140,333
LA CCD DS 2013 ref Bonds 8,380,000 1.079 90,461
L.A. CCD DS 2008 Series G 30,765,000 1.079 332,103
LA CCD DS 2015 REF Series A 144,250 1.079 1,557,262 LA CCD DS 2015 REF Series B 14,965,000 1.079 161,545 LA CCD DS 2015 REF Series C 178,565,000 1.079 1,927,579 LA CCD DS 2008 Series I 184,220,000 1.079 1,988,624 LA CCD DS 2008 Series J 173,020,000 1.079 1,867,721 LA CCD DS 2016 Ref Bonds 239,880,000 1.079 2,589,464 LA CCD DS 2020 Ref Bonds 1,750,350 1.079 18,894,730 LA CCD DS 2016 Series C 275,440,000 1.079 2,973,328 San Gabriel USD DS 2010 Ref Bond 8,404,370 0.057 4,773 San Gabriel USD DS 2008 Series B 255,000 0.057 145
San Gabriel USD DS 2012 Ref Bond Series B 11,359,745 0.057 6,451 San Gabriel USD DS 2008 Series C 161,636 0.057 92
San Gabriel USD DS 2015 Ref Bond Series A 61,810,000 0.057 35,101 Alhambra USD DS 1999 Series A 4,809,938 67.096 3,227,252 Alhambra USD DS 2005 Refund Bonds 4,565,000 67.096 3,062,910 Alhambra USD DS 2008 Series B-1 QSCB 10,324,708 67.096 6,927,415 49,119,695 67.096 32,957,105
Alhambra USD DS 2012 Ref Series B 3,380,000 67.096 2,267,828 Alhambra USD-Garvey DS 2016 Ref Series A 9,290,000 67.096 6,233,172 Alhambra USD DS 2016 Refund Bond Series B 20,025,000 67.096 13,435,874 Alhambra USD DS 2016 Series A 21,230,000 67.096 14,244,375 Alhambra USD-Garvey DS 2016 Series A 13,615,000 67.096 9,135,052 Total overlapping debt 136,298,873
City direct debt:
Certificates of participation/Lease Revenue Bonds $ 9,395,000 Capital leases 1,741,100
Total city direct debt 11,136,100
Total overlapping and direct debt $ 147,434,973
Debt to assessed valuation ratios: Direct debt 0.13%
Overlapping debt 1.54%
Total debt 1.67%
LA CCD DS 2008, 2010 Tax Series D
LA CCD DS 2008, 2010 Tax Series E (BABS)
2021/22 Assessed Valuation: $8,854,860,861 After Deducting $1,944,147,454 Incremental Value
CITY OF ALHAMBRA
Direct and Overlapping Debt
Current Year and Nine Years Ago
(Unaudited)
Alhambra USD-Garvey DS 2012 Ref Series A
2022
157
Percent
Gross bonded applicable Net bonded
debt balance to city debt
Overlapping debt:
*Metropolitan Water District $ 79,696,126 0.005 $ 4,006 11,985,000 1.193 142,950
74,440,000 1.193 887,877
473,395,000 1.193 5,646,379
L.A. CCD DS 2001, 2006 Series B 275,300,000 1.193 3,283,617 L.A. CCD DS 2003, 2006 Series C 382,160,000 1.193 4,558,181 LACC DS 2001, 2008 Series E-1 271,710,000 1.193 3,240,798 LACC DS 2003, 2008 Series F-1 344,915,000 1.193 4,113,944 LACC DS 2008, 2009 Taxable Series A 350,000,000 1.193 4,174,595 LACC DS 2008, 2009 Taxable Series B 75,000,000 1.193 894,556 175,000,000 1.193 2,087,298
900,000,000 1.193 10,734,674
125,000,000 1.193 1,490,927
LA CCD DS 2008 2012 Series F 250,000,000 1.193 2,981,854 San Gabriel USD DS 2002 Series B 6,181,492 0.072 4,467 San Gabriel USD DS 2005 Ref Bonds 16,955,000 0.072 12,254 San Gabriel USD DS 2002 Series 2007 C 10,667,878 0.072 7,710 San Gabriel USD DS 2008 Series A 18,088,245 0.072 13,073 San Gabriel USD DS 2010 Ref Bonds 6,410,000 0.072 4,633 San Gabriel USD DS 2008 Series B 16,003,464 0.072 11,566 Alhambra USD DS 99 Series B 5,580,561 66.504 3,711,276 Alhambra USD DS 2005 Refunding Bonds 8,320,000 66.504 5,533,102 Alhambra USD DS 2004 Series A 5,743,864 66.504 3,819,878 34,415,000 66.504 22,887,225
Alhambra USD-Garvey DS 2004 Series B 43,024,695 66.504 28,612,985 24,424,987 66.504 16,243,503
24,646,721 66.504 16,390,965
Total overlapping debt 141,539,844
City direct debt:
Certificates of participation $ 17,852,940
Assessment bonds 3,155,000
Notes, loans, advances 2,828,396
Capital leases 599,697
Total city direct debt 24,436,033
Total overlapping and direct debt $ 165,975,877
Debt to assessed valuation ratios: Direct debt 0.41%
Overlapping debt 2.37%
Total debt 2.78%
* This fund is a portion of a larger agency, and is responsible for debt in areas outside the city. by the city.
Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the city. The percentage of overlapping debt applicable is estimated by taxable assessed values. Applicable percentages were estimated by determining the portion of another governmental unit's taxable assessed value that is within the city's boundaries and dividing it by each unit's total taxable assessed value.
2012/13 Assessed Valuation: $5,979,193,111 After Deducting $1,130,990,647 Incremental Value Alhambra USD-Garvey 2012 Refunding
L.A. CCD DS 2003 Taxable Series 2004B
L.A. CCD DS 2001 Taxable Series 2004A
LACC Debt 2008, 2010 Tax Series D
LACC Debt 2010 Tax Series E (BABS)
2013
LACC DS 2008, 2010 Series C
Source: City of Alhambra Finance Department and the HdL Companies.
LACC DS Refunding 2001 Series 2005A
Alhambra USD DS 2008 Series B
CITY OF ALHAMBRA
Direct and Overlapping Debt
Current Year and Nine Years Ago
(Unaudited)
Alhambra USD DS 2008 Series B-1 QSCB
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159
CITY OF ALHAMBRA
Legal Debt Margin Information
Last Ten Fiscal Years
2013 2014 2015 2016
Assessed valuation $ 7,280,950,652 7,604,031,698 7,954,605,052 8,334,285,039 Conversion percentage 25% 25% 25% 25%
Adjusted assessed valuation 1,820,237,663 1,901,007,925 1,988,651,263 1,980,808,646 Debt limit percentage 15% 15% 15% 15%
Debt limit 273,035,649 285,151,189 298,297,689 297,121,297 0 0 0 0
$ 273,035,649 285,151,189 298,297,689 297,121,297 0% 0% 0% 0%
Source: City of Alhambra Finance Department
County of Los Angeles Tax Assessor
Total net debt applicable to the limit
as a percentage of debt limit
Total net debt applicable to limit
Legal debt margin
The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision was enacted when assessed valuation was based upon 25% of market value. Effective with the 1981-82 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The computations shown above reflect a conversion of assessed valuation data for each fiscal year from the current full valuation perspective to the 25% level that was in effect at the time the legal debt margin was enacted by the State of California for local governments located within the State.
160
2017 2018 2019 2020 2021 2022
8,769,670,010 9,193,900,098 9,787,142,205 10,263,582,052 10,713,981,415 10,799,008,315 25% 25% 25% 25% 25% 25%
2,097,063,327 2,208,903,175 2,446,785,551 2,565,895,513 2,678,495,354 2,699,752,079 15% 15% 15% 15% 15% 15%
314,559,499 331,335,476 367,017,833 384,884,327 401,774,303 404,962,812 0 0 0 0 0 0
314,559,499 331,335,476 367,017,833 384,884,327 401,774,303 404,962,812 0% 0% 0% 0% 0% 0%
161
CITY OF ALHAMBRA
Pledged-Revenue Coverage
Last Ten Fiscal Years
Special
Fiscal Assessments Tax
Year Collections Principal Interest Coverage Increment Principal Interest Coverage 2013 $ 3,759,533 425,000 206,260 5.96 4,987,232 3,435,000 1,659,108 0.98 2014 3,522,728 450,000 179,463 5.60 6,948,835 (2) 1,394,436 4.98 2015 3,739,405 480,000 150,982 5.93 28,271 2,380,000 871,494 0.01 (3) 2016 3,681,461 510,000 120,663 5.84 5,214,628 2,815,000 1,055,550 1.35 2017 3,565,550 540,000 88,508 5.67 4,422,224 2,935,000 925,875 1.15 2018 3,659,311 570,000 54,512 5.86 8,993,990 3,080,000 775,500 2.33 2019 3,702,884 605,000 18,528 5.94 5,991,448 3,230,000 617,750 1.56 2020 —
(6) — — — 3,706,750 3,405,000 451,875 0.96 2021 — — — — 4,194,750 3,340,000 283,250 1.16 2022 — — — — —
(7) 3,995,000 99,875 —
(1) Through January 31, 2012, the date of dissolution of the Alhambra Redevelopment Agency, tax increment was reported within Governmental Activities.
Beginning February 1, 2012, tax increment was reported within the Private Purpose Trust Fund. (2) Bonds were refunded in December 2013, no principal payments were made in current year on new or refunded bonds. (3) The Successor Agency to the City of Alhambra received a lesser amount of the increment since the Agency held excess tax increment from prior years which was available to fund debt service payments. (4) 2006 Water System Revenue Certificates of Participation were refunded by 2016 Water Revenue Refunding Bonds (5) Net revenue has been revised for certain excludable expenses. (6) Bonds were fully redeemed September 2018.
(7) Bonds were fully redeemed September 2021 from bond reserve funds.
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
Source: City of Alhambra Finance Department
Tax Allocation Bonds (1)
Debt Service Debt Service
Special Assessment Bonds
162
Water Sewer
System System
Net Revenue Principal Interest Coverage Net Revenue Principal Interest Coverage 1,310,691 625,000 492,319 1.17 — — — — 4,758,713 655,000 463,746 4.25 — — — — 2,876,348 680,000 435,025 2.58 — — — — 1,774,810 710,000 406,740 1.59 — — — — 4,031,602
(5) 745,000 (4) 273,725 3.96 — — — —
4,176,983 (5) 695,000 303,150 4.18 — — — — 3,376,451 (5) 710,000 289,750 3.38 — — — — 2,267,352 745,000 253,750 2.27 2,369,747 145,000 296,606 5.37 2,871,178 780,000 216,500 2.88 3,455,892 150,000 289,356 7.87 1,896,178 825,000 177,500 1.89 2,713,834 160,000 281,853 6.14 Refunding Bonds
Water Revenue Certificates of Participation/
Sewer Revenue Bonds
Debt Service Debt Service
163
(2) (2)
Personal Per
Income Capita (2) (3)
Calendar (1) (thousands Personal Median Unemployment
Year Population of dollars) Income Age Rate %
2012 84,240 2,069,861 $ 24,571 $ 39.2 8.0 2013 84,697 2,131,061 25,161 39.8 6.5 2014 84,736 2,153,820 25,418 39.8 5.4 2015 86,782 2,107,510 24,285 40.3 4.4 2016 86,922 2,178,714 25,065 40.7 3.4 2017 86,665 2,199,150 25,375 41.0 3.1 2018 86,931 2,332,283 26,829 40.9 4.0 2019 86,792 2,451,804 28,249 40.6 3.7 2020 86,258 2,682,543 31,099 40.9 12.9 2021 81,834 2,754,053 33,654 41.4 7.9 Sources: (1) State Department of Finance
(2) Estimates based on last available Census (HdL Companies) (3) State of California Employment Development Department Demographic and Economic Statistics
Last Ten Calendar Years
CITY OF ALHAMBRA
164
Percentage Percentage
Number of of Total Number of of Total
Employer Employees Employment Employees Employment
Alhambra City Schools 1,925 4.52% 2,136 5.01%
Los Angeles County Public Works 3,641 8.55% 3,600 8.45% AHMC Healthcare Inc 605 1.42% 600 1.41%
Los Angeles County Development Authority 687 1.61% 1,500 3.52% East LA Regional Center 359 0.84% N/A N/A
Alhambra City Hall 517 1.21% 675 1.58%
Home Depot 236 0.55% N/A N/A
Edison Company 800 1.88% 800 1.88%
Costco 369 0.87% 369 0.87%
Target 263 0.62% 275 0.65%
N/A - Not available
Notes:
Available data sources are limited and may be unreliable. The City does not affirm the validity of this data. 2021 numbers are rounded and reported at mid-point of range if applicable.
"Total Employment" as used above represents the total estimated employment of all employers located within City limits.
Source: City of Alhambra Community Development Department and San Gabriel Valley Economic Partnership 2022 2013
CITY OF ALHAMBRA
Principal Employers
Current Year and Nine Years Ago
165
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
General government 36.9 37.9 38.9 36.8 40.3 40.2 43.3 43.8 44.0 43.7 City council 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0
Management services 4.4 4.9 4.9 4.3 5.3 4.7 4.5 4.5 5.8 6.8 City Clerk 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.5 3.5 3.5
General government buildings 2.3 2.3 2.3 2.3 2.3 2.3 2.3 2.3 2.3 0.8 Communications 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.5 1.5
Finance 14.1 13.6 14.6 14.6 15.6 16.1 15.7 15.7 17.0 16.7 Human Resources 4.2 4.2 4.2 3.0 4.3 4.3 8.0 8.0 6.3 6.6 Code enforcement 2.9 3.9 3.9 3.6 3.8 3.8 3.8 3.8 2.7 2.8 Police 141.4 141.4 141.4 141.4 141.4 142.1 139.0 139.0 140.6 147.5 Officers 90.0 85.0 85.0 85.0 85.0 85.0 85.0 85.0 85.0 90.0 Other 51.4 56.4 56.4 56.4 56.4 57.1 54.0 54.0 55.6 57.5 Fire 67.7 67.7 67.7 68.7 68.7 69.2 68.2 68.2 69.0 69.0
Firefighters/paramedics 60.0 60.0 60.0 59.0 59.0 59.0 61.0 61.0 61.0 61.0 Other 7.7 7.7 7.7 9.7 9.7 10.2 7.2 7.2 8.0 8.0
Public safety 209.1 209.1 209.1 210.1 210.1 211.3 207.2 207.2 209.6 216.5 Public works 26.6 25.4 25.4 26.2 27.2 27.2 33.4 33.2 33.7 30.0 Housing, health and community
development 10.3 12.9 12.9 13.9 13.9 11.9 14.4 14.4 15.4 15.3 Library 31.9 31.9 31.9 31.9 31.9 31.9 30.8 30.8 30.8 28.0 Parks and recreation 56.5 56.0 56.0 57.2 57.2 52.1 58.8 59.8 65.7 66.3 Water 53.3 55.0 55.0 53.0 53.0 53.0 45.6 44.4 46.0 43.9 Sewer and storm drain 7.0 7.3 11.3 10.3 10.1 12.1 11.8 11.6 9.8 10.8 Sanitation 16.4 14.8 14.8 14.8 14.5 14.7 10.3 10.1 6.1 5.1 Total 448.0 450.3 455.3 454.2 458.2 454.4 455.6 455.3 461.1 459.6 Source: City of Alhambra Finance Department
Function/Program
CITY OF ALHAMBRA
Full-time Equivalent City Government Employees by Function/Program, Last Ten Fiscal Years
166
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167
CITY OF ALHAMBRA
Operating Indicators by Function
Last Ten Fiscal Years
2013 2014 2015 2016 2017
Arrests 1,768 1,783 1,606 1,813 1,477 911 calls 28,983 27,003 25,410 23,527 21,728 Fire
Number of emergency calls in city 5,505 5,749 5,237 5,807 5,982 Inspections 1,677 1,775 1,9 89 2,729 3,927 Street light bulbs replaced 856 956 952 950 975 Concrete repaired - linear feet 21,777 20,3 47 20,440 18,568 1 6,391 Graffiti abatement - square feet 104,327 99,0 50 78,659 73,091 2 3,983 Street sweeping miles 25,131 25,370 23,511 24,555 19,644 Trees trimmed 6,211 7,064 6,081 5,960 4,358 Building
Number of residential permits issued 712 777 537 602 893 Number of commercial permits issued 144 206 144 163 197 Number of recreation participants 103,760 93,1 92 91,825 69,690 8 1,275 Number of facility rentals/day s rented (1) 1,237 1,536 4,747 4,421 4,189 Meter reads 103,182 103,461 103,00 7 104,291 105,462 Average daily consumption 12,471,520 12,798,402 11,490,011 10,007,723 10,382,000 Sewer service connections 16,832 16,898 16,931 16,639 17,07 4 2,555 2,555 2,555 2,555 2,555 Sanitation
Number of trash pick ups 18,929 18,937 18,958 18,981 19,000 Waste collection - city -wide (tons) - - - - - 589,853 574,543 593,007 550,056 477,963 Library
Number of items circulated 433,165 409,508 361,747 333,899 290,863 Number of items catalogued 18,416 16,959 16,968 15,174 15,51 8 Number of questions answered 114,119 115,177 96,036 101,194 98,187 Number of registrations 9,561 9,705 9,323 9,485 8,92 0 Children's program attendance 19,428 11,70 5 13,059 12,701 12 ,511 Golf course
58,735 59,832 55,503 52,930 53,249 (1) Data collection method changed to day s rented beg inning 2019 (2) Operating indicator changed to tons collected begi nning 2022 due to new waste hauler contract Park s and recreation
Water
Police
Public work s
Community transit ridership
Sewer
Lift station inspections
Transit
Source: City of Alhambra
Golf rounds play ed
168
2018 2019 2020 2021 2022
1,665 1,726 1,446 1,454 1,491 21,741 21,615 23,453 20,404 21,226 6,694 6,571 6,336 6,226 6,695 701 2,770 4,706 3,241 5,999
988 933 1,946 793 462 11,385 18,070 23,000 10,239 18,237 18,818 29,985 33,833 50,465 34,452 19,644 19,644 6,740 12,890 11,036 7,337 5,741 7,879 6,965 5,785 711 727 834 713 1,978 152 188 146 86 322 93,526 148,313 163,750 9 9,408 94,203 4,975 18,652 19,837 11,311 10,737 105,596 106,635 107,212 106 ,505 107,741 10,480,000 8,267,773 7,569,729 8,405, 397 7,870,816 17,090 17,167 17,507 17,736 17,822 2,555 2,555 2,555 2,555 2,555 18,988 19,009 18,912 18,954 - - - - - (2) 64,358 413,908 368,699 287,646 119 ,483 182,601 276,685 271,842 188,797 80, 373 215,836 15,489 14,211 11,493 9,384 17,401 92,529 97,753 81,150 9,330 16,425 8,451 7,886 6,049 2,294 5,428 12,970 12,544 9,664 1,981 5,287 52,839 51,266 50,208 76,247 72,595 169
CITY OF ALHAMBRA
Capital Asset Statistics by Function
Last Ten Fiscal Years
2013 2014 2015 2016
1 1 1 1
Fire
4 4 4 4
Street lights 7,000 7,000 7,000 7,000
130 130 130 130
Alleys (miles) 16 16 16 16
6 6 6 6
Ballfields
Community centers 1 1 1 1
Water reservoir tanks 12 12 12 12
Reservoir storage (millions of gallons) 27.58 27.58 27.58 27.58 Wells 12 12 12 12
130 130 130 130 Storm catch basins 1,101 1,101 1,101 1,101 187,653 186,687 183,841 184,539 Library
Libraries 1 1 1 1
Golf course
1 1 1 1
N/A - Not available
Fire stations
Police
Stations
Source: City of Alhambra
Street (miles)
Parks and recreation
Transit
Total community transit route miles
Sewer
Sewer mains (miles)
Parks
Water
Municipal golf courses
Public works
170
2017 2018 2019 2020 2021 2022
1 1 1 1 1 1
4 4 4 4 4 4
7,000 7,000 7,000 7,000 7,000 7,000
130 130 130 130 130 130
16 16 16 16 16 16
6 6 6 6 6 6
1 1 1 1 1 1
12 12 12 12 12 12
27.58 27.58 27.58 27.58 27.58 27.58
12 12 12 12 12 12
130 130 130 130 130 130 1,101 1,101 1,101 1,101 1,101 1,101 179,821 168,956 163,366 153,279 174,548 168,115 1 1 1 1 1 1
1 1 1 1 1 1
171