CITY OF ALHAMBRA · PDF fileCITY OF ALHAMBRA . CALIFORNIA . COMPREHENSIVE ANNUAL . ......

CITY OF ALHAMBRA CALIFORNIA CALIFORNIA

COMPREHENSIVE ANNUAL FINANCIAL REPORT

FOR THE YEAR ENDED JUNE 30, 2012

On the Cover: Howard Street Townhomes Residential affordable townhome project at 534 West Howard Street to accommodate six low-income and two moderate-income households. The townhomes will be sold through the City’s first-time homebuyer program.

CITY OF ALHAMBRA,

CALIFORNIA

Comprehensive Annual Financial Report

Year ended June 30, 2012

(With Independent Auditors’ Report Thereon)

Prepared by:

Paul Espinoza, Director of Finance and Staff

CITY OF ALHAMBRA

Comprehensive Annual Financial Report

Table of Contents

Page

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

Financial Section:

Independent Auditors’ Report 1

Management’s Discussion and Analysis 3 Basic Financial Statements:

Government-Wide Financial Statements: Statement of Net Assets 15 Statement of Activities 16

Fund Financial Statements: Balance Sheet – Governmental Funds 17 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental

Funds 19 Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and

Actual: General Fund 21 Community Development Block Grant Special Revenue Fund 24 Home and Rental Rehabilitation Grant Special Revenue Fund 25

Statement of Net Assets – Proprietary Funds 26 Statement of Revenues, Expenses, and Changes in Fund Net Assets – Proprietary

Funds 27 Statement of Cash Flows – Proprietary Funds 28

Statement of Fiduciary Net Assets 30

Notes to the Basic Financial Statements 32

Required Supplementary Information (Unaudited): Schedule of Funding Progress of the City’s Defined Benefit Pension Plan 82 Schedule of Funding Progress of the City’s Health Subsidy Pension Plan 83 Schedule of Funding Progress of the City’s Other Post-Employment Benefit Plans 83

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CITY OF ALHAMBRA

Table of Contents, Continued

Page

Combining and Individual Fund Statements and Schedules:

Other Governmental Funds: Combining Balance Sheet – Other Governmental Funds 84 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances –

Other Governmental Funds 85 Combining Balance Sheet – Other Special Revenue Funds 86

Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Deficits) – Other Special Revenue Funds 88

Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Other Special Revenue Funds:

Law Enforcement Fund 90 TDA Bikeway Fund 91 State Gas Tax Fund 92 Proposition A – Transportation Fund 93 Proposition C – Transportation Fund 94 Measure R Fund 95 Air Quality Fund 96 Lighting and Landscape Maintenance Fund 97 Police Facility Assessment Fund 98 Asset Forfeiture Fund 99 Transportation Capital Improvements Fund 100 Alhambra Redevelopment Agency Low- and Moderate-Income Housing Fund 101

Combining Balance Sheet – Other Debt Service Funds 102 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances –

Other Debt Service Funds 103 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and

Actual – Other Debt Service Funds: Community Improvement Fund 104 Lighting and Sidewalk Construction Fund 105 Police Facility Fund 106 Alhambra Redevelopment Agency Tax Allocation Bond Fund 107

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CITY OF ALHAMBRA

Table of Contents, Continued

Page

Combining Balance Sheet – Other Capital Projects Funds 108 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances –

Other Capital Projects Funds 109 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and

Actual – Other Capital Projects Funds: Capital Outlay Fund 110 Alhambra Redevelopment Agency Central Projects Fund 111 Alhambra Redevelopment Agency Industrial Projects Fund 112

Internal Service Funds:

Combining Statement of Net Assets (Deficits) – Internal Service Funds 113 Combining Statement of Revenues, Expenses, and Changes in Net Assets (Deficits) –

Internal Service Funds 114 Combining Statement of Cash Flows – Internal Service Funds 115

Statistical Section (Not Covered by Independent Auditors’ Report)

Net Assets by Component - Last Nine Fiscal Years 117 Changes in Net Assets - Last Nine Fiscal Years 118 Fund Balances of Governmental Funds - Last Nine Fiscal Years 120 Changes in Fund Balances of Governmental Funds - Last Nine Fiscal Years 121 Assessed Value and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years 122 Direct and Overlapping Property Tax Rates - Current Year and Nine Years Ago 123 Principal Property Tax Payers - Current Year and Nine Years Ago 124 Property Tax Levies and Collections - Last Ten Fiscal Years 125 Ratios of Outstanding Debt by Type - Last Ten Fiscal Years 126 Ratios of General Bonded Debt Outstanding - Last Ten Fiscal Years 127 Direct and Overlapping Debt 128 Legal Debt Margin Information - Last Ten Fiscal Years 130 Pledged Revenue Coverage - Last Ten Fiscal Years 131 Demographic and Economic Statistics 132 Principal Employers - Current Year and Nine Years Ago 133 Full-time Equivalent City Government Employees by Function/Program - Last Ten Fiscal Years 134 Operating Indicators by Function - Last Ten Fiscal Years 135 Capital Asset Statistics by Function - Last Ten Fiscal Years 136

Introductory Section

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

Management’s discussion and analysis (MD&A) immediately follows the independent auditor’s report and provides a narrative introduction, overview, and analysis of the basic financial statements. 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 was incorporated on July 11, 1903 and became the third city in the state to adopt by charter the Council-Manager form of government. Council members are nominated by district and elected at large 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 generally has been fully developed since the 1960’s. Private development and higher densities have increased the population from 54,800 in 1960 to 89,501 in 2010. The City is diversified with single family and multiple family housing development, commercial development, and significant industrial development.

The City provides a full range of municipal services. Services provided include police, fire, street maintenance and improvements, water and storm drains, 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 over 8300 active businesses located in the City generating over $1 billion in taxable sales in 2011-2012. Approximately 28% of that amount is from “Auto Row” which currently has 10 dealers and 13 different makes of automobiles. Other major businesses include Costco, Kohl’s, Home Depot, Office Depot, Ross Dress For Less, Staples, Target, Smart and Final, and Toys R Us. The renaissance of downtown Alhambra includes the 14 screen Alhambra Renaissance Cineplex with adjacent parking structure. The Cineplex includes stadium seating, a 20,000 square foot public plaza, and 15,000 square feet of retail/restaurant space located at the northeast corner of Main Street and Garfield Avenue. Cineplex eating establishments include Applebee’s Grill, Panda Express and Menchie’s Frozen Yogurt, and Grill’Em All, along with many other nearby restaurants. The Cineplex Parking Structure is a five-level 252,000 square foot structure with 811 parking spaces.

Alhambra’s economic condition generally reflects the overall economic condition of the Los Angeles County region. The recession which started in December 2007 has impacted General Fund revenues. In addition to the recession, in January 2011, the California Supreme Court upheld AB1X 26 calling for the dissolution of redevelopment agencies in the state. Pursuant to that ruling, the Alhambra Redevelopment Agency ceased to exist as of February 1, 2012. General Fund revenues collected and received for the fiscal year 2011-12 amounted to just above $54 million keeping in line with budget estimates, however, due to the dissolution of the Redevelopment Agency, the City was forced to remit a portion of its General Fund lease revenues ($1,044,732) to the Successor Agency (former Alhambra Redevelopment Agency). It is helpful to note that these lease revenues, lost due to AB1X 26, were not identified as funds to be used to offset regular general fund operating costs, but rather, were earmarked for expenses related to the operations of Freemont Plaza, Main Street and lease rental properties. In addition to these lease revenues, the general fund experienced a loss in Homeland Security Grant revenues in the amount of $363,377. Accordingly, these grant funds were earmarked for capital projects that were eliminated once it was determined that these revenues would not materialize. As a result of these two events, actual net General Fund revenues (adjusted for transfers and

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sales of capital assets) amounted to $53,034,471 for fiscal year end June 30, 2012. During the year, the City addressed the anticipated reduction in revenues by having departments reduce spending. As a result of this, actual net General Fund expenditures (adjusted for transfers) for the fiscal year ended June 30, 2012 amounted to $53,546,712 and the final adopted General Fund budget amounted to $55,515,761 resulting in a budget savings of $1,969,049. Due to this decrease in General Fund spending, the year end fund balance is maintained at approximately the same level as the original budget.

The City closely monitors current revenues and expenditures to determine if any long-term trends are developing which may require adjustment of anticipated revenues or expenses.

Financial Information

Long-term Financial Planning. The City has developed a Strategic Plan with established goals from which budgetary decisions are made. The Plan is periodically updated and the City is consistently working to achieve these goals.

City goals for fiscal years 2012 – 2013 are as follows:

• Enhance commercial development, housing and jobs creation • Enhance the quality of our neighborhoods and community • Improve financial stability • Improve and enhance the City’s infrastructure and facilities • Enhance community awareness of the City’s programs and services

Substantial progress has been made towards the accomplishment of these goals.

The City has also developed a Five-Year Capital Improvement Plan detailing specific capital projects planned for each City department. Each project is consistent with the overall goals and objectives of the City as outlined in the Strategic and General Plans. The current Five-Year Capital Improvement Plan proposed $16 million of capital projects which includes $3.6 million for major street projects, $4.6 million for water and sewer system improvements, and $4 million in public safety capital expenditures.

Internal Controls. Management of the City is responsible for establishing and maintaining internal control designed to ensure that the assets of the government are protected from loss, theft, or misuse, and to ensure that adequate accounting data are compiled to allow for the preparation of financial statements in conformity with U.S. generally accepted accounting principles. Internal control is designed to provide reasonable, but not absolute, assurance that these 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) the valuation of costs and benefits requires estimates 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 capital outlay. The ledgers of the City and its component units are maintained by the line item detail or object of expenditure. However, all budgetary controls are exercised at the department and fund level. The City maintains budgetary controls to ensure compliance with legal provisions in the annual appropriated budget approved by the City. Revenues are estimated annually and measured against actual revenues earned. The City also maintains an encumbrance accounting system for budgetary control. Encumbrances generally are re-appropriated as part of the following year's budget.

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Major Initiatives

Establishment of the City’s Economic Development Ordinance: On June 29, 2011, as part of adopting the State of California Fiscal Year (FY) 2011-12 budget, the Governor signed two trailer bills, AB1X 26 and AB1X 27 into law. The legislation was effective on June 29, 2011. AB1X 26 eliminates redevelopment agencies and AB1X 27 provides an opportunity for cities to “opt-in” and continue to have their redevelopment agencies operate and function.

The California Supreme Court later upheld AB1X 26, while invalidating AB1X 27. Pursuant to that ruling, the Alhambra Redevelopment Agency ceased to exist as of February 1, 2012.

For over forty years the Alhambra Redevelopment Agency has undertaken economic development activities that have enhanced the housing, jobs, shopping, dining and parking opportunities for its residents. The Agency has also constructed public improvements that have benefited the City and its residents.

Additionally, the increased tax base created through the enhanced sales tax and property tax revenues resulting for all of the economic development activities of the Agency have enabled the City to maintain balanced budgets, while still funding critical public safety, infrastructure construction and maintenance, and recreational opportunities for the Alhambra residents. Because the legislature has elected to eliminate the only economic development engine of the state by eliminating redevelopment agencies, the Alhambra Redevelopment Agency will no longer be able to continue its vital and effective efforts to enhance the general welfare of the residents of Alhambra.

Alhambra is a Charter law City. Pursuant to the Alhambra City Charter, the Alhambra City Council is authorized to legislate over any municipal affair to the full extent permitted by the California Constitution. Economic development within the City of Alhambra is a municipal affair, as demonstrated by the impacts of those efforts that directly benefit the general welfare of the citizens of Alhambra. Further, the decision to utilize City resources and funds to further those efforts within the City’s boundaries is also a municipal affair, within the scope of the City Councils legislative authority.

In February 2012, the Council adopted Ordinance O2M12-4594 adding chapter 3.34 “Economic Development” in the Alhambra Municipal code and set forth the economic development powers and obligations of the City of Alhambra. The ordinance includes many of the powers of the former Alhambra Redevelopment agency utilized so successfully over the past forty plus years.

The adoption of the ordinance will allow the City to continue to undertake those development assistance efforts that have resulted in so much benefit to the residents of the City. The ordinance will allow for the continued development of the infill affordable and transit oriented housing. Continued infill development of the major business and retail corridors, bringing housing, jobs, shopping and entertainment together to minimize the need for vehicle trips, while enhancing the City’s vibrant downtown would facilitated by this ordinance. The City can also continue to work with developers to not only bring in enhanced shopping, dining and entertainment opportunities, but also create aesthetically pleasing development that brings new jobs to the City. Assistance can also be used not just to attract, but also to retain high paying jobs and industries within the City.

Although the City will not receive tax increment for purposes of economic development as the Alhambra Redevelopment Agency did, other funds could be used by the City for those purposes (subject to City Council approval).

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 Annual Financial Report for the year ended June 30, 2011. The Certificate of Achievement is a prestigious national award-recognizing conformance with the highest standards for preparation of state and local government financial reports.

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Officials of the City of Alhambra

Mayor

Barbara A. Messina Second District

City Council Members

Luis Ayala Gary S. Yamauchi Fifth District Third District

Steven T. Placido Stephen K. Sham Fourth District First District

City Administration and Department Heads

City Manager ..............................................................................................................................Julio J. Fuentes

City Attorney ...............................................................................................................................Joseph Montes

Director of Administrative Services ............................................................................................... Tara Schultz

Director of Public Works...............................................................................................................Mary Chavez

Director of Community Services ................................................................................................. Cynthia Jarvis

Director of Finance.......................................................................................................................Paul Espinoza

Director of Development Services ..................................................................................................Mary Swink

Director of Library Services ................................................................................................ Carmen Hernandez

Police Chief ............................................................................................................................. Mark Yokoyama

Fire Chief..........................................................................................................................................Bill Walker

Assistant City Manager/Director of Personnel ............................................................................ Richard Bacio

Director of Utilities..........................................................................................................................Mary Swink

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ORGANIZATIONAL CHART

PEOPLE OF ALHAMBRA

City Council

Gary S. YamauchiThird District

Steven T. PlacidoFourth District

Barbara MessinaSecond District

Luis AyalaFifth District

Stephen ShamFirst District

HCDA Citizen’sAdvisory Committee

Design & ReviewBoard

PlanningCommission

Board of LibraryTrustees

Parks & RecreationCommission

TransportationCommission

Civil ServiceBoard of Appeals

Arts & CulturalEvents Committee

City Manager City Attorney(Contract)

Management Services Administrative Services

Development Services Finance

Fire Library

Community Services Personnel

Police Public Works

Utilities

Financial Section

2875 Michelle Drive, Suite 300, Irvine, CA 92606 • Tel: 714.978.1300 • Fax: 714.978.7893

Offices located in Orange and San Diego Counties

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INDEPENDENT AUDITORS’ REPORT

The Honorable Mayor and Members of City Council City of Alhambra Alhambra, California We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Alhambra (City), as of and for the year ended June 30, 2012, which collectively comprise the City’s basic financial statements as listed in the table of contents. The financial statements are the responsibility of the City of Alhambra’s management. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing 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 over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2012 and the respective changes in financial position and cash flows, where applicable, thereof and the respective budgetary comparison for the General Fund, Community Development Block Grant Special Revenue Fund, and Home and Rental Rehabilitation Grant Special Revenue Fund for the year then ended in conformity with accounting principles generally accepted in the United States of America. As discussed in Note V.K to the financial statements, the Alhambra Redevelopment Agency, a blended component unit of the City, was dissolved effective February 1, 2012 as a result of legislation enacted by the State of California. In accordance with Government Auditing Standards, we have also issued our report dated January 23, 2013, on our consideration of the City’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit.

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The management’s discussion and analysis and schedules of funding progress, listed in the table of contents as required supplementary information, are not a required part of the basic financial statements but are supplementary information required by the accounting principles generally accepted in the United States of America. This information is an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the management’s discussion and analysis and the schedules of funding progress in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during the audit of the basic financial statements. We do not express an opinion or provide any assurance on the management’s discussion and analysis and the schedules of funding progress because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements as a whole. The introductory section, supplementary information in the financial section and statistical section, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The supplementary information in the financial section is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information in the financial section is fairly stated in all material respects in relation to the basic financial statements taken as a whole. The introductory section, and statistical section have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion or provide any assurance on them. Irvine, California January 23, 2013

CITY OF ALHAMBRA

Management’s Discussion and Analysis

June 30, 2012

This section of the City’s Comprehensive Annual Financial Report provides a narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2012. We encourage readers to consider the information presented here in conjunction with additional information we have furnished in our letter of transmittal, which can be found beginning on page iv and the City’s financial statements beginning on page 15.

Financial Highlights

The following are some key financial highlights for the fiscal year June 30, 2012:

• The assets of the City exceeded its liabilities at the close of the most recent fiscal year by $202,934,046 (net assets), which was comprised of capital assets, net of related debt of $160,957,254, restricted for debt service of $1,821,727, restricted for projects and programs of $12,154,326, and unrestricted net assets of $28,000,739.

• The City’s total net assets increased by $25,822,468 during the current fiscal year, comprised of an increase in governmental activities of $20,658,691, and an increase in business-type activities of $5,163,776.

• As of June 30, 2012, the City’s governmental funds reported combined fund balances of $28,626,441, a decrease of $7,131,884 in comparison with the prior year. Of this amount, $8,171,614 or approximately 29% of total fund balances, are available for spending at the City’s discretion (committed, assigned, and unassigned fund balance).

• At the end of the current fiscal year, committed, assigned, and unassigned fund balance for the General Fund was $9,074,904, or 18% of total general fund expenditures. However, the City has committed or assigned $8,700,231 for various projects and programs leaving $374,673 as unassigned.

• The Alhambra Redevelopment Agency revenues decreased $11,566,770 or 64% decrease from prior year, and expenditures decreased $10,608,345 or 81% decrease from prior year which resulted from the elimination of the Alhambra Redevelopment Agency on January 31, 2012 pursuant to AB1X26. Additional information can be found in notes to the basic financial statements on pages 72 through 79 of this report.

Overview of the Financial Statements

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

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

The statement of net assets presents information on all of the City’s assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.

See accompanying independent auditors' report 3

CITY OF ALHAMBRA


June 30, 2012

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

Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities). The governmental activities of the City include general government, public safety, public works, housing, health and community development, culture and recreation, and interest on long-term debt. The business-type activities of the City include its water, sewer and storm drain, sanitation, and golf course/clubhouse operations.

The government-wide financial statements include not only the City itself (known as the primary government), but also five legally separate entities, the Alhambra Capital Improvements Corporation, Alhambra Golfcourse/Clubhouse Corporation, Alhambra Public Financing Authority, and the Alhambra Parking Authority. The City is financially accountable for these entities and financial information for these blended component units is reported within the financial information presented for the primary government itself. Financial information for another blended component unit, the Alhambra Redevelopment Agency, is also included with the activities of the primary government.

The government-wide financial statements can be found on page 15 and page 16 of this report.

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

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

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

The City maintains 23 individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures and changes in fund balances for the General Fund, Community Development Block Grant Fund, Home Rental and Rehabilitation Fund, and the Housing Asset Fund, each of which is considered to be major funds. Data from the other 19 governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these other governmental funds is provided in the form of combining statements in the other governmental funds section of this report.


CITY OF ALHAMBRA


June 30, 2012

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, Community Development Block Grant Fund, Home Rental and Rehabilitation Fund, and the Housing Asset Fund are located in the basic financial statements.

The basic governmental fund financial statements can be found on page 17 and page 19 of this report.

Proprietary Funds. The City maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its water, sewer and storm drain, sanitation, and golf course/clubhouse operations. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City’s various functions. The City uses internal service funds to account for self-insurance activities, including: general claims liability, workers’ compensation insurance, vehicle operation and maintenance, and compensated absences.

Because these services benefit both governmental and business-type functions, the services have been allocated to governmental and business type activities in the government-wide financial statements.

Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the water, sewer and storm drain, sanitation, and golfcourse/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 26 through page 29 of this report.

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

The basic fiduciary fund financial statements can be found on page 30 through page 31 of this report.

Notes to the Basic Financial Statements. The notes to the basic financial statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the basic financial statements can be found on pages 32 through 81 of this report.

Other Information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City’s progress in funding its obligation to provide pension benefits and other post-employment benefits to its employees. Required supplementary information can be found on pages 82 through 83 of this report.

The combining statements referred to earlier in connection with other governmental funds and internal service funds, together with information on capital assets used in the operation of governmental funds (those not included in internal service funds), are presented immediately following the required supplementary information on pensions. Combining and individual fund statements and schedules can be found on pages 84 through 116 of this report.


CITY OF ALHAMBRA


June 30, 2012

Government-wide Financial Analysis

Governmental Business-typeactivities activities Total

2012 2011 2012 2011 2012 2011

Assets:Current and other assets $ 53,312,499 69,053,669 32,088,720 27,184,081 85,401,219 96,237,750 Capital assets 144,859,855 154,060,966 45,972,777 46,435,492 190,832,632 200,496,458

Total assets 198,172,354 223,114,635 78,061,497 73,619,573 276,233,851 296,734,208

Liabilities:Current and other liabilities 5,738,972 7,581,222 3,072,061 3,242,912 8,811,033 10,824,134 Long-term liabilities 50,066,054 93,824,776 14,422,718 14,973,720 64,488,772 108,798,496

Total liabilities 55,805,026 101,405,998 17,494,779 18,216,632 73,299,805 119,622,630

Net assets (deficit):Invested in capital assets,

net of related debt 125,254,685 117,571,980 35,702,569 35,565,392 160,957,254 153,137,372 Restricted 12,815,183 29,145,405 1,160,870 1,160,870 13,976,053 30,306,275 Unrestricted (deficit) 4,297,460 (25,008,748) 23,703,279 18,676,679 28,000,739 (6,332,069)

Total net assets $ 142,367,328 121,708,637 60,566,718 55,402,941 202,934,046 177,111,578

Summary of Net Assets

June 30, 2012 and 2011

As noted earlier, net assets may serve over time as a useful indicator of the City’s financial position. In the case of the City, assets exceeded liabilities by $202,934,046 at June 30, 2012.

The largest portion of the City’s net assets of $160,957,254 reflects its investment in capital assets (e.g., land, buildings, infrastructure, machinery and equipment, etc.), less any related debt used to acquire those assets that are still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.

The second largest portion of the City’s net assets of $13,976,053 represent resources that are subject to external restrictions on how they may be used. The remaining portion of the City’s net assets is unrestricted and may be used to meet the City’s ongoing obligations to citizens and creditors. At June 30, 2012, unrestricted net assets were $28,000,739.


CITY OF ALHAMBRA


June 30, 2012

Summary of Activities Year ended June 30, 2012 and 2011


2012 2011 2012 2011 2012 2011Revenues:

Program revenues:Charges for services $ 10,800,440 16,426,649 35,047,417 31,721,769 45,847,857 48,148,418 Operating grants and

contributions 11,362,119 7,811,223 45,824 476,018 11,407,943 8,287,241 Capital grants and contributions 1,724,680 6,302,102 — — 1,724,680 6,302,102

General revenues 52,194,557 58,322,845 355,118 226,188 52,549,675 58,549,033

Total revenues 76,081,796 88,862,819 35,448,359 32,423,975 111,530,155 121,286,794 Expenses:

General government 1,441,044 2,493,419 — — 1,441,044 2,493,419 Public safety 43,467,450 42,807,574 — — 43,467,450 42,807,574 Public works 8,106,881 8,445,460 — — 8,106,881 8,445,460 Housing, health, and community

development 8,161,367 12,464,262 — — 8,161,367 12,464,262 Culture and recreation 9,482,993 9,541,415 — — 9,482,993 9,541,415 Interest on long-term debt 2,427,493 3,447,568 — — 2,427,493 3,447,568 Water — — 17,571,245 16,841,738 17,571,245 16,841,738 Sewer and storm drain — — 2,053,522 1,665,141 2,053,522 1,665,141 Sanitation — — 8,581,865 8,640,626 8,581,865 8,640,626 Golf course/clubhouse — — 1,541,488 1,622,215 1,541,488 1,622,215

Total expenses 73,087,228 79,199,698 29,748,120 28,769,720 102,835,348 107,969,418 Increase (decrease) in net assets

before other gains and transfe 2,994,568 9,663,121 5,700,239 3,654,255 8,694,807 13,317,376 Extraordinary gain 17,127,661 — — — 17,127,661 — Transfers in (out) 536,462 1,123,716 (536,462) (1,123,716)

— —

Increase (decrease) in net assets 20,658,691 10,786,837 5,163,777 2,530,539 25,822,468 13,317,376

Net assets, July 1, as restated 121,708,637 110,921,800 55,402,941 52,872,402 177,111,578 163,794,202

Net assets, June 30 $ 142,367,328 121,708,637 60,566,718 55,402,941 202,934,046 177,111,578

Governmental Activities. Governmental activities increased the City’s net assets by $20,658,691 primarily due to the elimination of the Alhambra Redevelopment Agency which resulted in an extraordinary gain of $17,127,661.

Governmental Revenues. Governmental revenues decreased by $12,781,023 or 14.4%. There are several reasons which account for this decrease, however the main factors are a decrease in general revenues of $6,128,288 due to decrease in property tax increment of $5,485,692 from the elimination of the Alhambra Redevelopment Agency and a decrease in charges for services of $5,626,209 due to a one-time property sale of $4.5 million that occurred in the fiscal year 2010-11.

Governmental Expenses. Governmental expenses decreased by $6,112,470 or 7.7%. There are several reasons which account for this decrease, however main factors are a decrease in housing, health, and community development expenses of $4,302,895 and a decrease in interest on long-term debt of $1,020,075 primarily due to the elimination of the Alhambra Redevelopment Agency.


CITY OF ALHAMBRA


June 30, 2012

Expenses and Program Revenues – Governmental Activities For the year ending June 30, 2012

$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000

$40,000,000

$45,000,000

$50,000,000

Generalgovernment

Public safety Public works Housing, health,and community

development

Culture andrecreation

Interest on long-term debt

ExpensesProgram revenues

Revenues by Source – Governmental Activities

Charges for services12%

Operating grants and contributions

12%

Capital grants and contributions

2%

Property taxes22%

Sales taxes14%

Motor vehicle in lieu8%

Othertaxes8%

Investment earnings

1%

Other22%


CITY OF ALHAMBRA


June 30, 2012

Business-type Activities. Business-type activities increased the City’s net assets by $5,163,777 indicating that business-type activities had revenues sufficient to cover operations. A key element of this increase is as follows:

• Water Fund net assets increased $2,831,100 due to revenues exceeding expenses providing for the accumulation of resources for future capital projects and expenses.

• Sewer and Storm Drain Fund net assets increased $2,758,188 due to revenues exceeding expenses providing for the accumulation of resources for future capital projects and expenses.

E x p e n s e s a n d P r o g r a m R e v e n u e s – B u s i n e s s - t y p e A c t i v i t i e s f o r t h e y e a r e n d e d J u n e 3 0 , 2 0 1 2

$ 0

$ 5 , 0 0 0 , 0 0 0

$ 1 0 , 0 0 0 , 0 0 0

$ 1 5 , 0 0 0 , 0 0 0

$ 2 0 , 0 0 0 , 0 0 0

$ 2 5 , 0 0 0 , 0 0 0

W a t e r S e w e r a n d s t o r md r a i n

S a n i t a t i o n G o l fc o u r s e / c l u b h o u s e

E x p e n s e sP r o g r a m r e v e n u e s

Revenues by Source– Business-type Activities

35,047,417

45,824 — 240,938 114,178$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000

$40,000,000

Charges for services Operating grants andcontributions

Capital grants andcontributions

Investment earnings Other


CITY OF ALHAMBRA


June 30, 2012

Financial Analysis of the City’s Major Funds

Governmental Funds. The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information may be useful in assessing the City’s financing requirements. Below is an analysis of the City’s major governmental funds for the year ended June 30, 2012.

A m o u n t P ercen ta g eJ u n e 3 0 , J u n e 3 0 , In crease In crea se

2 0 1 2 2 0 1 1 , a s resta ted (D ecrease) (D ecrease)T o ta l F u n d B alan ce :

F u n d :G en era l F u n d $ 9 ,2 4 5 ,9 5 5 9 ,7 5 8 ,1 9 6 (5 1 2 ,2 4 1 ) -5 %C o m m u n ity D evelo p m en t B lo ck G ran t 1 ,0 6 5 ,4 5 8 1 ,0 0 3 ,3 9 1 6 2 ,0 6 7 6 %H o m e an d R en ta l R eh ab ilita tio n G ran ts 1 ,1 7 6 ,5 0 9 1 ,4 5 3 ,9 5 2 (2 7 7 ,4 4 3 ) -1 9 %H o u sin g A sse t F u n d 5 ,0 1 9 ,2 7 9 — 5 ,0 1 9 ,2 7 9 -

T o ta l F u n d B alan ce $ 1 6 ,5 0 7 ,2 0 1 1 2 ,2 1 5 ,5 3 9 4 ,2 9 1 ,6 6 2 -1 8 %

The General Fund is the chief operating fund of the City. At the end of the current fiscal year, the fund balance was $9,245,955 which decreased by $512,241 during the current fiscal year. There are multiple reasons for the decrease, however a significant reason is a loss of over $1 million in lease revenues from properties transferred back to the Redevelopment Agency. This loss in revenues was partially offset by property maintenance costs for the associated properties resulting in a net loss of lease revenues of $766,550.

The Community Development Block Grant Fund is utilizes federal grant monies received from the U.S. Department of Housing and Urban Development along with miscellaneous program income to develop certain project areas in accordance with HUD regulations. At the end of the current fiscal year, the fund balance was $1,065,458 which increased by $62,067 during the current fiscal year. The net increase in fund balance is due to timing differences in the recording of grant revenues and expenditures.

The Home and Rental Rehabilitation Grant (HOME) Fund utilizes federal grant monies received from the U.S. Department of Housing and Urban Development along with miscellaneous program income to fund affordable housing projects. At the end of the current fiscal year, the fund balance was $1,176,509 which decreased by $277,443 during the current fiscal year. The net decrease in fund balance is primarily due to timing differences in the recording of grant revenues and expenditures.

The Housing Asset Fund is used to account for funds used for low and moderate income housing activities in accordance with applicable housing-related regulations. At the end of the current fiscal year, the fund balance was $5,019,279. This is a new fund for the current fiscal year created as a result of the dissolution of the Alhambra Redevelopment Agency. Certain assets of the former Low and Moderate Income Housing Fund were transferred to the Housing Asset Fund.


CITY OF ALHAMBRA


June 30, 2012

Proprietary Funds. The City’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail.

A m ount P ercentageJune 30, June 30 , Increase Increase

2012 2011 (D ecrease) (D ecrease)N et A ssets:

W ater Fund $ 40,794 ,874 37 ,963 ,774 2 ,831 ,100 7 .5%Sew er Fund 16,860 ,335 14 ,102 ,147 2 ,758 ,188 19 .6%Sanitation Fund (50 ,242) 159 ,179 (209 ,421) -131 .6%G olf course/C lubhouse Fund 4,733 ,635 4 ,543 ,944 189 ,691 4 .2%

Total N et A ssets $ 62 ,338 ,602 56 ,769 ,044 5 ,569 ,558 -100 .4%

U nrestricted N et A ssets:W ater Fund $ 16,639 ,719 13 ,719 ,148 2 ,920 ,571 21 .3%Sew er Fund 10,796 ,040 8 ,432 ,072 2 ,363 ,968 28 .0%Sanitation Fund (229,522) (60 ,446) (169 ,076) 279.7%G olf course/C lubhouse Fund (1 ,731 ,074) (2 ,047 ,992) 316 ,918 -15 .5%

Total U nrestricted N et A ssets $ 25 ,475 ,163 20 ,042 ,782 5 ,432 ,381 313 .6%

Enterprise Funds. Unrestricted net assets of the enterprise funds totaled $25,454,615 and total growth in net assets for these funds was $5,569,558. Other factors concerning the finances of these funds have already been addressed in the discussion of the City’s business-type activities.

The Water Fund’s unrestricted net assets were $16,639,719, while total net assets were $40,794,874 at the end of the current year. The net assets of the Water Fund increased by $2,831,100 during the current fiscal year attributable primarily due to water rate increases to accumulate funds for future capital projects.

The Sewer and Storm Drain Fund’s unrestricted net assets were $10,796,040, while total net assets were $16,860,335 at the end of the fiscal year. The net assets of the Sewer and Storm Drain Fund increased by $2,758,188 during the current fiscal year primarily due to sewer rate increases to accumulate funds for future capital projects.

The Sanitation Fund’s unrestricted net deficit was $229,522 at the end of the current fiscal year, while total net deficit was $50,242. The net assets of the Sanitation Fund decreased by $209,421 during the current fiscal year. This decrease was due to the planned use of available net assets during the current fiscal year.

The Golf course/Clubhouse fund’s unrestricted net deficit was $1,731,074, while total net assets were $4,733,635 at the end of the current fiscal year. The net assets of the Golf course/Clubhouse fund increased $189,691 during the current fiscal year. This increase is a significant improvement from prior years primarily attributed to decreased golf course operating costs.


CITY OF ALHAMBRA


June 30, 2012

General Fund Budgetary Highlights

In the General Fund, differences between the original budget and the final amended budget resulted in a net increase in appropriation of $804,892 (net of prior year carryover of available and encumbered balances) and can be briefly summarized as follows:

• $85,000 in increases allocated to various general government departments

• $17,664 in increases allocated to the library department

• $80,200 in increases allocated to the community services department

• $622,029 in increases allocated to public safety

The increase in various general government departments included $95,000 for a rose parade float budgeted from available committed fund balance and a decrease of $10,000 for a transfer to community services department for capital improvements. The increase in library department of $17,664 was funded from donations made to the library. The increase in community services included $45,000 for additional staffing required at pool facility funded by additional user fees, $10,000 transfer from general government departments, and $25,000 in grant funded facility repairs. The increase of $622,029 in public safety included $610,062 for training and equipment funded from homeland security and urban area grants made available to the fire department and $12,700 for training center maintenance funded by additional user fees.

Also in the General Fund, differences between the final amended budget and the actual amounts for revenues and expenditures resulted in a net positive variance of $282,828. General fund revenues accounted for a negative variance of $1,418,427 resulting primarily from lease revenues from properties transferred back to the Redevelopment Agency which accounted for the negative variance of over $1 million in investment income. Other negative variances were from many sources including homeland security grants of $363,377 and sales taxes of $282,524 which were also offset by other positive variances from budget to actual comparisons. The General Fund expenditures were under budget by $1,701,255 primarily due to expenditures for non-capital public safety under budget by $399,323 due to savings resulting from unfilled positions offset partially by overtime costs, community services departments under budget by $450,576, public safety capital expenditures under budget by $580,572 from unexpended grant revenues, and many other departmental expenditures under budget due to cost savings.

Capital Asset and Debt Administration

Capital Assets. The City’s investment in capital assets for its governmental and business-type activities amounts to $190,832,632 (net of accumulated depreciation of $92,552,360) as of June 30, 2012. This investment in capital assets includes land, buildings, improvements other than building, infrastructure (roads, sidewalks, land held under easement, streetlights, etc.), and machinery and equipment.


CITY OF ALHAMBRA


June 30, 2012

Capital Assets(Net of Accumulated Depreciation)

June 30, 2012 and 2011


2012 2011 2012 2011 2012 2011

Land $ 22,326,669 27,824,696 5,769,073 5,769,073 28,095,742 33,593,769Buildings, structures, and improvements 61,271,423 67,637,340 12,824,890 13,188,152 74,096,313 80,825,492 Machinery and equipment 3,835,941 4,489,380 1,462,075 1,588,348 5,298,016 6,077,728Utility systems — — 25,667,084 25,784,322 25,667,084 25,784,322 Infrastructure 54,657,251 50,939,248 — — 54,657,251 50,939,248 Construction in progress 2,768,571 3,651,599 249,655 105,597 3,018,226 3,757,196

Total $ 144,859,855 154,542,263 45,972,777 46,435,492 190,832,632 200,977,755

Additional information on the City’s capital assets can be found in notes to the basic financial statements on pages 48 through 52 of this report.

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

Governmental activities

• Net capital assets of $10,127,985 were transferred to a private purpose trust fund as a result of the dissolution of the Alhambra Redevelopment Agency.

• Machinery and equipment additions include eleven police vehicles, eighteen in-car mobile video equipment, and other miscellaneous equipment.

• Construction in progress increased due to various street construction projects and an affordable townhome project to be completed next fiscal year.

• Infrastructure additions included improvements to streets and sidewalks.

Business-type activities

• Utility systems additions included improvements in water and sewer lines, water reservoirs, and water wells.

• Construction in progress increased due to various water and sewer projects to be completed next fiscal year.

Debt Administration. At the end of the current fiscal year, the City had total bonded debt outstanding of $37,466,080. Of this amount, $33,886,080 represents certificates of participation issued for various capital improvements including police facility, golf course/clubhouse, and water treatment facility and $3,580,000 represents special assessment bonds to finance public works maintenance and improvement projects. Additions to the City’s long-term debt included a net increase in outstanding claims of $1,096,504, pension liability of $896,138, and OPEB liability of $1,169,625. Deductions include the transfer of 40,751,252 of tax allocation bonds and $2,793,960 of contractual obligations ($158,119 was paid in the current fiscal year) to a private purpose trust fund as a result of the dissolution of the Alhambra Redevelopment Agency, and repayment of outstanding principal totaling $3,926,779.


CITY OF ALHAMBRA


June 30, 2012

Outstanding Debt

June 30, 2012 and 2011


2012 2011 2012 2011 2012 2011

Bonded indebtedness:Certificates of participation $ 22,161,236 24,061,002 11,724,844 12,345,749 33,886,080 36,406,751 Assessment district bonds 3,580,000 3,980,000 — — 3,580,000 3,980,000 Tax allocation refunding bonds — 40,805,052 — — — 40,805,052

Other long-term debt:Capital lease obligations 18,510 37,941 — — 18,510 37,941 Benefits payable 3,097,792 3,154,295 391,704 388,431 3,489,496 3,542,726 Pension liability 2,678,365 1,904,059 475,406 353,574 3,153,771 2,257,633 OPEB liability 3,325,970 2,296,924 460,295 319,716 3,786,265 2,616,640 Self insurance claims payable 11,157,528 10,061,024 — — 11,157,528 10,061,024 Contractual obligations — 2,952,079 — — — 2,952,079 Notes and loans payable 4,046,653 4,572,400 1,370,469 1,566,250 5,417,122 6,138,650

$ 50,066,054 93,824,776 14,422,718 14,973,720 64,488,772 108,798,496

Additional information on the City’s debt can be found in notes to the basic financial statements on pages 55 through 61 of this report.

The City received bond ratings of “Aaa” and “AAA” on its 2005 certificates issue due to the issuance of a municipal bond insurance policy. Standard & Poors credit market services has assigned a rating of “A“ to the City.

State statutes limit the amount of general obligations debt a governmental entity may issue to 15% of its total assessed valuation. The current debt limitation for the City is $267,227,198. The City currently has no general obligation debt.

Next Year’s Budget

The major emphasis in the fiscal year 2012-2013 budget includes expenditures for public safety, infrastructure improvements and continued emphasis on downtown mixed-use development and job creation. While there has been slow economic growth recovery the City’s total General Fund revenues, net of grant reimbursements and transfers, are anticipated to increase 1.5% for fiscal year 2012-2013. The City will continue to realize budget savings through salary savings and the deferring of certain capital expenditures funded by the General Fund to future years.

Request for Information

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


Basic Financial Statements

CITY OF ALHAMBRA

Statement of Net Assets

June 30, 2012

Governmental Business-typeAssets Activities Activities Total

Cash and investments $ 24,456,362 24,831,804 49,288,166 Restricted cash and investments 3,032,037 1,160,870 4,192,907 Accounts receivable 6,449,439 9,036,302 15,485,741 Notes receivable 3,658,223 — 3,658,223 Loans receivable 4,086,767 — 4,086,767 Due from Successor Agency 6,837,938 — 6,837,938 Internal balances 3,646,699 (3,646,699) — Inventories 33,465 405,031 438,496 Deferred charges 676,625 280,759 957,384

18,136 20,653 38,789 416,808 — 416,808

Capital assets not being depreciated 25,095,240 6,018,728 31,113,968 Capital assets, net of accumulated depreciation 119,764,615 39,954,049 159,718,664

Total assets 198,172,354 78,061,497 276,233,851

Liabilities

Liabilities:Accounts payable 2,319,748 2,447,376 4,767,124 Accrued liabilities 1,386,104 — 1,386,104 Bond interest payable 511,833 166,305 678,138 Due to Successor Agency 972,132 — 972,132 Deposits 495,565 411,694 907,259 Retentions payable 53,590 46,686 100,276 Long-term liabilities:

Due within one year 4,676,155 878,630 5,554,785 Due in more than one year 45,389,899 13,544,088 58,933,987

Total liabilities 55,805,026 17,494,779 73,299,805

Net Assets

Invested in capital assets, net of related debt 125,254,685 35,702,569 160,957,254

Debt service 660,857 1,160,870 1,821,727 Projects and programs 12,154,326 — 12,154,326

Unrestricted 4,297,460 23,703,279 28,000,739 Total net assets $ 142,367,328 60,566,718 202,934,046

Property held for resalePrepaid items

Restricted for:

Net assets:

See accompanying auditors' report and notes to financial statements 15

CITY OF ALHAMBRA

Statement of Activities


Net (expenses) revenues andProgram revenues changes in net assets

Operating Capital Charges for grants and grants and Governmental Business-type

Expenses services contributions contributions activities activities Total

Functions/programs primary government:Governmental activities:

General government $ 1,441,044 670,662 — — (770,382) — (770,382) Public safety 43,467,450 5,094,315 375,089 — (37,998,046) — (37,998,046) Public works 8,106,881 799,264 2,585,449 1,635,910 (3,086,258) — (3,086,258) Housing, health, and community development 8,161,367 3,670,906 8,038,014 18,013 3,565,566 — 3,565,566 Culture and recreation 9,482,993 565,293 363,567 70,757 (8,483,376) — (8,483,376) Interest on long-term debt 2,427,493 — — — (2,427,493) — (2,427,493)

Total governmental activities 73,087,228 10,800,440 11,362,119 1,724,680 (49,199,989) — (49,199,989)

Business-type activities:Water 17,571,245 20,042,797 23,188 — — 2,494,740 2,494,740 Sewer and storm drain 2,053,522 4,969,467 — — — 2,915,945 2,915,945 Sanitation 8,581,865 8,159,101 22,636 — — (400,128) (400,128) Golf course/clubhouse 1,541,488 1,876,052 — — — 334,564 334,564

29,748,120 35,047,417 45,824 — — 5,345,121 5,345,121 Total $ 102,835,348 45,847,857 11,407,943 1,724,680 (49,199,989) 5,345,121 (43,854,868)

General revenues:Property taxes and assessments 20,444,955 — 20,444,955 Sales tax 13,123,551 — 13,123,551 Utility users tax 4,314,006 — 4,314,006 Franchise tax 1,374,734 — 1,374,734 Business license tax 1,540,172 — 1,540,172 Other taxes 183,436 — 183,436 Unrestricted intergovernmental 7,202,924 — 7,202,924 Unrestricted investment earnings 117,604 114,178 231,782 Miscellaneous 3,893,175 240,940 4,134,115

Transfers 536,462 (536,462) —

Total general revenues and transfers 52,731,019 (181,344) 52,549,675

Gain from dissolution of Alhambra Redevelopment Agency 17,127,661 — 17,127,661

Change in net assets 20,658,691 5,163,777 25,822,468

121,708,637 55,402,941 177,111,578 Net assets – end of year $ 142,367,328 60,566,718 202,934,046

Total business-type activities

Net assets – beginning of year, as restated


CITY OF ALHAMBRABalance Sheet – Governmental Funds

June 30, 2012

Home andCommunity Rental Nonmajor Totals

Development Rehabilitation Housing Governmental GovernmentalGeneral Block Grant Grants Asset Funds Funds

AssetsCash and investments $ 6,080,540 — — — 10,298,544 16,379,084 Restricted cash and investments — 2,370,265 — — 647,000 3,017,265 Receivables:

Accounts 4,299,219 137,958 455,047 — 1,557,213 6,449,437 Notes — — 788,052 2,870,171 — 3,658,223 Loans — 446,855 3,639,912 — — 4,086,767

4,126,673 990,687 — — 1,079,427 6,196,787 Due from Successor Agency 124,398 — — 5,019,279 1,694,261 6,837,938 Inventories 33,465 — — — — 33,465 Deferred Charges 18,091 45 — — — 18,136 Property held for resale — — 416,808 — — 416,808

Total assets $ 14,682,386 3,945,810 5,299,819 7,889,450 15,276,445 47,093,910 Liabilities and Fund Balances (Deficits)

Liabilities:Accounts payable $ 1,193,339 31,431 425,556 — 353,716 2,004,042 Accrued liabilities 1,386,104 — — — — 1,386,104 Due to other funds 62,067 2,402,066 19,264 — 1,787,856 4,271,253 Due to Successor Agency 972,132 — — — — 972,132 Deposits 483,216 — — — — 483,216 Deferred revenue 1,303,013 446,855 3,661,460 2,870,171 1,015,633 9,297,132 Retentions payable 36,560 — 17,030 — — 53,590

Total liabilities 5,436,431 2,880,352 4,123,310 2,870,171 3,157,205 18,467,469 Fund balances:

Nonspendable:Deferred charges 18,091 45 — — — 18,136 Due from Successor Agency — — — 5,019,279 1,392,300 6,411,579 Inventories 33,465 — — — — 33,465 Property held for resale — — 416,808 — — 416,808

Restricted for:Law enforcement 119,495 — — — 550,507 670,002 Streets and transportion — — — — 7,846,613 7,846,613 Air quality — — — — 464,083 464,083 Community development — 1,065,413 759,701 — — 1,825,114 Police facility — — — — 2,108,170 2,108,170 Debt service — — — — 660,857 660,857

Committed for:Emergency reserve 6,873,330 — — — — 6,873,330 Art in public places 301,502 — — — 301,502 Park projects 192,173 — — — — 192,173

Assigned to:Continuing appropriations 395,018 — — — — 395,018 Capital pojects 938,208 — — — — 938,208

Unassigned 374,673 — — — (903,290) (528,617)

Total fund balances (deficits) 9,245,955 1,065,458 1,176,509 5,019,279 12,119,240 28,626,441 Total liabilities and fund balances $ 14,682,386 3,945,810 5,299,819 7,889,450 15,276,445 47,093,910

Special Revenue Funds

Due from other funds


CITY OF ALHAMBRA

Fund balances of governmental funds $ 28,626,441

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

Capital assets used in governmental activities are not financial resources, and therefore, are not reported in governmental funds. 144,015,214

Long-term liabilities are not due and payable in the current period, and therefore, are not reported in governmental funds. (33,187,798)

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. (511,833) 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 assets. (1,897,951)

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 assets. (3,973,878)

Certain receivables recorded as deferred 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 assets. 9,297,133

Net assets of governmental activities $ 142,367,328

Balance Sheet – Governmental Funds (continued)

June 30, 2012

Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets:


CITY OF ALHAMBRA

Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds


Home andCommunity Rental Nonmajor Totals

Development Rehabilitation Housing Governmental GovernmentalGeneral Block Grant Grants Asset Funds Funds

Revenues:Taxes and assessments $ 29,330,456 — — — 11,385,970 40,716,426 Licenses and permits 2,770,921 — — — — 2,770,921 Intergovernmental 7,707,815 1,704,337 2,856,377 — 9,429,591 21,698,120 Investment earnings 117,505 432,536 25,000 — 814,154 1,389,195 Charges for services 4,438,716 — — — 154,354 4,593,070 Fines and forfeitures 2,896,230 — — — — 2,896,230 Other 3,313,459 — — — 211,720 3,525,179

Total revenues 50,575,102 2,136,873 2,881,377 — 21,995,789 77,589,141

Expenditures:Current:

General government 845,504 — — — — 845,504 Public safety 39,495,094 — — — 1,311,764 40,806,858 Public works 778,517 — — — 2,906,179 3,684,696 Housing, health, and community development 2,315,705 508,364 1,472,205 — 1,943,270 6,239,544 Culture and recreation 7,146,216 — — — 52,459 7,198,675

Capital outlay 870,966 963,191 1,682,181 — 5,285,190 8,801,528 Debt service:

Principal retirement 210,178 335,000 — — 2,227,679 2,772,857 Interest and fiscal charges 92,775 80,668 — — 2,415,390 2,588,833

Total expenditures 51,754,955 1,887,223 3,154,386 — 16,141,931 72,938,495

Excess (deficiency) of revenues overexpenditures (1,179,853) 249,650 (273,009) — 5,853,858 4,650,646

Other financing sources (uses):Transfers in 2,456,836 — — — 5,776,141 8,232,977 Transfers out (1,791,757) (187,583) (4,434) — (5,522,758) (7,506,532) Sale of capital assets 2,533 — — — 9,890 12,423

Total other financing sources (uses) 667,612 (187,583) (4,434) — 263,273 738,868 Extrordinary Items

Gain (loss) on the dissolution of the AlhambraRedevelopment Agency — — — 5,019,279 (17,540,677) (12,521,398)

Net change in fund balances (512,241) 62,067 (277,443) 5,019,279 (11,423,546) (7,131,884)

Fund balances at July 1, as restated 9,758,196 1,003,391 1,453,952 — 23,542,786 35,758,325 Fund balances at June 30 $ 9,245,955 1,065,458 1,176,509 5,019,279 12,119,240 28,626,441

Special Revenue Funds


CITY OF ALHAMBRA

Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds (continued)


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

Net change in fund balances – governmental funds $ (7,131,884)

Governmental funds report capital outlays as expenditures. However, in the statement of activities, the costs of those assets is allocated over their estimated useful lives, and reported as depreciation expense. This is the amount by which depreciation of $4,793,831 and the disposition of capital assets, net of $699,153 285,621 exceeded capital outlays of $5,778,605 in the current period.

Repayment of long-term liability principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net assets. 2,772,857

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, premiumsdiscounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the

and related items. 128,204

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’saccrued interest expense and the current year’s accrued interest expense is reported in the statement of activities (122,667)

Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. (1,722,473)

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 internalservice funds are reported with governmental activities included in governmental activities. (1,056,964)

Certain receivables 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. (2,143,062)

The Alhambra Redevelopment Agency was dissolved as of February 1, 2012 pursuant to Assembly Bill 1x26 and 1484Assets and liabilities of the dissolved Agency as of February 1, 2012 were transferred to the Successor Agency

Transfer of deferred bond issue costs $ (1,042,502) Transfer of capital assets to the Successor Agency (10,127,985) Transfer of long-term debt to the Successor Agency 43,545,212 Transfer of accrued interest payable to the Successor Agency 444,334 Transfer of deferred revenues (3,170,000) 29,649,059

Change in net assets of governmental activities $ 20,658,691

statement of activities. This amount is the net effect of these differences in the treatment of long-term debt


CITY OF ALHAMBRA

Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual

General Fund


Variance withfinal budget

Original Final Positivebudget budget Actual (Negative)

Revenues:Taxes:

Property taxes $ 8,153,000 8,153,000 9,058,984 905,984 Sales tax 12,381,684 12,381,684 12,099,160 (282,524) Public safety sales tax 607,146 607,146 623,148 16,002 Franchise tax 1,542,000 1,542,000 1,280,990 (261,010) Business license tax 1,540,000 1,540,000 1,540,172 172 Documentary transfer tax 175,000 175,000 135,009 (39,991) Utility users tax 4,358,000 4,358,000 4,314,006 (43,994) Other 498,500 498,500 278,987 (219,513)

Total taxes 29,255,330 29,255,330 29,330,456 75,126

Licenses and permits:Building permits 1,338,856 1,338,856 1,560,296 221,440 Other 1,165,010 1,165,010 1,210,625 45,615

Total licenses and permits 2,503,866 2,503,866 2,770,921 267,055

Intergovernmental:State vehicle license 7,308,000 7,308,000 7,202,924 (105,076) State police training grants 30,000 30,000 29,823 (177) Homeland security grants 47,492 405,600 42,223 (363,377) Federal summer food grant 187,357 187,357 130,593 (56,764) Other 698,687 698,687 302,252 (396,435)

Total intergovernmental 8,271,536 8,629,644 7,707,815 (921,829)

Investment earnings:Investment income 1,116,454 1,116,454 71,722 (1,044,732) Jail lease revenue 250,000 250,000 45,783 (204,217)

Total investment earnings 1,366,454 1,366,454 117,505 (1,248,949)

Charges for services:Zoning and subdivision 175,000 175,000 170,863 (4,137) Plan checking fees 924,224 924,224 763,961 (160,263) Paramedics 1,445,000 1,445,000 1,457,927 12,927 Other 1,565,650 1,578,379 2,045,965 467,586

Total charges for services 4,109,874 4,122,603 4,438,716 316,113

Fines and forfeitures 2,755,000 2,755,000 2,896,230 141,230 Interfund 3,055,132 3,055,132 3,055,132 — Other 290,334 305,500 258,327 (47,173)

Total revenues 51,607,526 51,993,529 50,575,102 (1,418,427)


CITY OF ALHAMBRA


General Fund

(Continued)





General government:City council $ 297,404 297,404 282,624 14,780 City manager 584,243 559,243 543,175 16,068 City clerk 517,582 516,232 477,478 38,754 Communications 170,524 170,524 169,436 1,088 Finance 1,645,634 1,645,634 1,526,344 119,290 City attorney 644,000 644,000 707,502 (63,502) Personnel 390,588 390,588 323,585 67,003 General government buildings 403,895 403,895 338,461 65,434 General services 269,190 269,190 228,349 40,841 Community promotion 111,925 111,925 111,925 — Marketing 186,709 186,709 182,174 4,535

364,100 364,100 479,310 (115,210) Cost allocation (4,560,011) (4,560,011) (4,524,859) (35,152)

Total general government 1,025,783 999,433 845,504 153,929

Public safety:Police 23,004,675 23,004,675 22,168,635 836,040 Police – public safety augmentation 471,209 471,209 461,599 9,610 Parking enforcement 1,628,859 1,628,859 1,602,167 26,692 Fire 14,397,666 14,410,366 14,911,509 (501,143) Fire – public safety augmentation 129,148 129,148 129,765 (617) Hazardous materials 52,540 52,540 53,476 (936) Disaster preparedness 38,053 38,053 19,782 18,271 Hearing office 44,690 44,690 44,899 (209) Animal control 114,877 114,877 103,262 11,615

Total public safety 39,881,717 39,894,417 39,495,094 399,323

Public works:Administration and engineering 815,829 815,829 778,517 37,312

Housing, health, and community development:Building and planning 1,724,102 1,724,102 1,833,158 (109,056) Code enforcement 480,487 480,487 426,680 53,807 Stormwater environmental compliance 59,043 59,043 55,867 3,176

Total housing, health, and community development 2,263,632 2,263,632 2,315,705 (52,073)

Non-departmental


CITY OF ALHAMBRA


General Fund

(Continued)




Culture and recreation:Public library $ 2,616,614 2,625,934 2,510,205 115,729 Administration 504,965 504,965 437,181 67,784 Community services 526,451 526,451 510,081 16,370 Recreation services 932,867 932,867 797,286 135,581 Senior services 320,368 320,568 309,842 10,726 Park operations 2,003,194 1,996,194 1,918,319 77,875 Lunch program 174,671 174,671 165,096 9,575 Aquatics 195,517 240,517 213,671 26,846 Senior support 274,613 274,613 284,535 (9,922)

Total culture and recreation 7,549,260 7,596,780 7,146,216 450,564

Capital outlay:General government 106,851 218,201 134,308 83,893 Public safety 52,225 661,554 80,982 580,572 Culture and recreation 653,068 703,411 655,676 47,735

Total capital outlay 812,144 1,583,166 870,966 712,200

Debt service:Principal retirement 210,178 210,178 210,178 — Interest and fiscal changes 92,775 92,775 92,775 —

Total debt service 302,953 302,953 302,953 —

Total expenditures 52,651,318 53,456,210 51,754,955 1,701,255

Excess (deficiency) of revenues over expenditures (1,043,792) (1,462,681) (1,179,853) 282,828

Other financing sources (uses):Transfers in 2,443,966 2,443,966 2,456,836 12,870 Transfers out (2,059,551) (2,059,551) (1,791,757) 267,794 Sale of property 4,000 4,000 2,533 (1,467)

Total other financing sources (uses) 388,415 388,415 667,612 279,197

Net change in fund balances (655,377) (1,074,266) (512,241) 562,025

Fund balance at July 1, as restated 9,758,196 9,758,196 9,758,196 — Fund balance at June 30 $ 9,102,819 8,683,930 9,245,955 562,025


CITY OF ALHAMBRA

in Fund Deficit – Budget and Actual

Community Development Block Grant Special Revenue Fund




Revenues:Intergovernmental $ 1,637,840 1,637,840 1,704,337 66,497 Investment earnings 322,000 322,000 432,536 110,536

Total revenues 1,959,840 1,959,840 2,136,873 177,033

Expenditures:Current: Housing, health, and community development 1,621,610 916,610 508,364 408,246 Capital outlay 1,140,799 2,515,799 963,191 1,552,608 Debt service Principal retirement 335,000 335,000 335,000 — Interest and fiscal charges 80,668 80,668 80,668 —


Excess (deficiency) of revenuesover expenditures (1,218,237) (1,888,237) 249,650 2,137,887

Other financing uses - transfer out (187,583) (187,583) (187,583) —

Net change in fund balances (1,405,820) (2,075,820) 62,067 2,137,887

Fund balance at July 1, as restated 1,003,391 1,003,391 1,003,391 — Fund balance at June 30 $ (402,429) (1,072,429) 1,065,458 2,137,887

Statement of Revenues, Expenditures, and Changes


CITY OF ALHAMBRA

Statement of Revenues, Expenditures, and Changesin Fund Balance – Budget and Actual

Home and Rental Rehabilitation Grant Special Revenue Fund



Revenues:Intergovernmental $ 1,630,201 1,630,201 2,856,377 1,226,176 Investment earnings 50,000 50,000 25,000 (25,000)

Total revenues 1,680,201 1,680,201 2,881,377 1,201,176


Housing, health, and community development 1,989,338 2,740,428 1,472,205 1,268,223 Capital Outlay 1,541,837 1,541,837 1,682,181 (140,344)


Deficiency of revenues over expenditures (1,850,974) (2,602,064) (273,009) 2,329,055

Other financing uses - transfers out (17,737) (17,737) (4,434) 13,303

Net change in fund balances (1,868,711) (2,619,801) (277,443) 2,342,358

Fund balance at July 1 1,453,952 1,453,952 1,453,952 —

Fund balance at June 30 $ (414,759) (1,165,849) 1,176,509 2,342,358



CITY OF ALHAMBRA

Statement of Net Assets

Proprietary Funds

June 30, 2012Governmental

Activities –Enterprise funds Internal

Sewer and Golf course/ ServiceAssets Water storm drain Sanitation clubhouse Total Funds

Current assets:Cash and investments $ 14,224,079 10,607,594 6 125 24,831,804 8,077,278 Restricted cash and investments 473,938 — — — 473,938 12,349 Accounts receivable 7,929,963 392,305 601,935 112,099 9,036,302 2 Inventories 405,031 — — — 405,031 — Deferred charge 280,759 — — — 280,759 — Prepaid items 20,653 — — — 20,653 —

Total current assets 23,334,423 10,999,899 601,941 112,224 35,048,487 8,089,629

Noncurrent assets:Restricted cash and investments 686,932 — — — 686,932 2,423 Capital assets:

Land 1,923,817 169,595 — 3,675,661 5,769,073 237,950 Building, structures, and improvements 36,411,403 7,775,941 22,129 7,066,800 51,276,273 — Machinery and equipment 2,144,728 882,224 886,446 23,877 3,937,275 6,587,619 Construction in progress 21,900 227,754 — — 249,654 —

40,501,848 9,055,514 908,575 10,766,338 61,232,275 6,825,569

Less accumulated depreciation (7,305,695) (2,991,219) (729,295) (4,233,289) (15,259,498) (5,980,928)

Total capital assets, net of accumulateddepreciation 33,196,153 6,064,295 179,280 6,533,049 45,972,777 844,641 Total noncurrent assets 33,883,085 6,064,295 179,280 6,533,049 46,659,709 847,064

Total assets 57,217,508 17,064,194 781,221 6,645,273 81,708,196 8,936,693

Liabilities

Current liabilities:Accounts payable 1,994,274 35,431 557,606 26,370 2,613,681 315,706 Due to other funds — — 58,677 1,816,138 1,874,815 50,719 Compensated absences 27,926 3,612 5,031 — 36,569 289,206 Deposits 411,694 — — — 411,694 12,349 Retentions payable 2,190 43,706 — 790 46,686 — Current portion – certificates of participation 625,000 — — 21,280 646,280 — Current portion – loan payable 195,781 — — — 195,781 — Current portion – self insurance claims payable — — — — — 1,646,462

Total current liabilities 3,256,865 82,749 621,314 1,864,578 5,825,506 2,314,442 Long-term liabilities (net of current portion)

Certificates of participation 11,031,504 — — 47,060 11,078,564 — 271,235 35,063 48,837 — 355,135 2,808,586

Loan payable 1,174,688 — — — 1,174,688 — Pension liability 351,030 43,202 81,174 — 475,406 21,647 OPEB liability 337,312 42,845 80,138 — 460,295 26,713 Self insurance claims payable — — — — — 9,511,066

Total long-term liabilities 13,165,769 121,110 210,149 47,060 13,544,088 12,368,012

Total liabilities 16,422,634 203,859 831,463 1,911,638 19,369,594 14,682,454

Net Assets

Net assets:Invested in capital assets, net of related debt 22,994,285 6,064,295 179,280 6,464,709 35,702,569 844,641 Restricted for:

Debt service 1,160,870 — — — 1,160,870 — Unrestricted (deficit) 16,639,719 10,796,040 (229,522) (1,731,074) 25,475,163 (6,590,402)

Total net assets $ 40,794,874 16,860,335 (50,242) 4,733,635 62,338,602 (5,745,761)

Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds (1,771,884) Net assets of business-type activities $ 60,566,718

Compensated absences


CITY OF ALHAMBRA

Proprietary Funds


GovernmentalActivities –

Enterprise funds InternalSewer and Golf course/ Service

Water storm drain Sanitation clubhouse Total Funds

Operating revenues:Charges for services $ 20,042,797 4,969,467 8,159,101 1,876,052 35,047,417 1,765,481 Self-insurance/compensated absences contributions — — — — — 10,952,854 Other 23,188 — 22,636 — 45,824 —

Total operating revenues 20,065,985 4,969,467 8,181,737 1,876,052 35,093,241 12,718,335

Operating expenses:Purchase of water 2,497,070 — — — 2,497,070 — Other water production 195,484 — — — 195,484 — Water pumping, transmission, and distribution 2,439,609 — — — 2,439,609 — General and administrative 10,717,073 — — — 10,717,073 — Water quality and environmental 144,824 — — — 144,824 — Water conservation 28,339 — — — 28,339 — Sewer and storm maintenance — 1,405,154 — — 1,405,154 — Sanitation — — 8,390,356 — 8,390,356 — Recycling — — 59,979 — 59,979 — Golf course — — — 1,177,851 1,177,851 — Golf course clubhouse — — — 150,225 150,225 — Claims and compensated absences expense — — — — — 12,483,227 Vehicle expense — — — — — 1,411,120 Depreciation and amortization 689,180 144,599 40,345 147,667 1,021,791 173,295

Total operating expenses 16,711,579 1,549,753 8,490,680 1,475,743 28,227,755 14,067,642

Operating income (loss) 3,354,406 3,419,714 (308,943) 400,309 6,865,486 (1,349,307)

Nonoperating revenues (expenses):Interest income 93,025 21,153 — — 114,178 26,545 Interest expense (519,691) — — (2,470) (522,161) — Gain (loss) on disposal of equipment (179,654) (778) — — (180,432) — Other income 239,619 (411,990) 1,320 — (171,051) 50,000

Total nonoperating revenues (expenses) (366,701) (391,615) 1,320 (2,470) (759,466) 76,545 2,987,705 3,028,099 (307,623) 397,839 6,106,020 (1,272,762)

Transfers in 255,949 — 207,014 — 462,963 2,079,367 Transfers out (412,554) (269,911) (108,812) (208,148) (999,425) (2,269,350)

Change in net assets 2,831,100 2,758,188 (209,421) 189,691 5,569,558 (1,462,745)

Net assets at July 1 37,963,774 14,102,147 159,179 4,543,944 (4,283,016) Net assets at June 30 $ 40,794,874 16,860,335 (50,242) 4,733,635 (5,745,761)

Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds (405,781)

Change in net assets of business-type activities $ 5,163,777

Statement of Revenues, Expenses, and Changes in Net Assets

Income (loss) before transfers


CITY OF ALHAMBRA

GovernmentalActivities –

Enterprise funds InternalSewer and Golf course/ Service


Cash flows from operating activities:Cash received from customers $ 18,745,623 4,953,949 8,204,452 1,907,869 33,811,893 12,780,424 Cash paid insurance premiums and self-insurance claims — — — — — (10,987,099) Cash paid for compensated absences claims (362,630) (38,961) (65,105) — (466,696) (361,470)

(10,769,909) (751,778) (7,424,933) (1,342,535) (20,289,155) (1,375,028) Cash paid to employees for services (4,848,525) (550,310) (916,974) — (6,315,809) (233,065) Other operating cash received 152,657 — 23,956 — 176,613 50,000

Net cash provided by (used in) operating activities 2,917,216 3,612,900 (178,604) 565,334 6,916,846 (126,238)

Cash flows from noncapital financing activities:Cash received from lease revenues 104,492 — — — 104,492 — Cash paid on loans from other funds — — — (2,150,414) (2,150,414) — Cash received on loans from other funds — — 58,677 1,816,138 1,874,815 — Cash received on loans to other funds — — — — — 57,479 Transfers from other funds 255,949 — 207,014 — 462,963 2,079,367 Transfers to other funds (412,554) (269,911) (108,812) (208,148) (999,425) (2,269,350)

Net cash provided by (used in) noncapital financing activities (52,113) (269,911) 156,879 (542,424) (707,569) (132,504)

Cash flows from capital and related financing activities:Acquisitions and construction of capital assets (197,822) (951,587) — — (1,149,409) (271,454) Grant proceeds 23,188 — — — 23,188 — Principal paid on certificates of participation and capital lease obligations (795,781) — — (20,440) (816,221) — Interest paid on certificates of participation and capital lease obligations (519,691) — — (2,470) (522,161) —

Net cash used in capital and related financing activities (1,490,106) (951,587) — (22,910) (2,464,603) (271,454)

Cash flows from investing activities:Interest received 93,025 21,153 — — 114,178 26,545

Net cash provided by investing activities 93,025 21,153 — — 114,178 26,545

Net increase (decrease) in cash and cash equivalents 1,468,022 2,412,555 (21,725) — 3,858,852 (503,651)

Cash and cash equivalents at July 1 13,916,927 8,195,039 21,731 125 22,133,822 8,595,701 Cash and cash equivalents at June 30 $ 15,384,949 10,607,594 6 125 25,992,674 8,092,050

Cash and investments $ 14,224,079 10,607,594 6 125 24,831,804 8,077,278 Restricted cash and investments 1,160,870 — — — 1,160,870 14,772

Total cash and cash equivalents $ 15,384,949 10,607,594 6 125 25,992,674 8,092,050

Noncash investing, capital, and financing activities:(10,691) (2,983) 6 — (13,668) (6,395)

Statement of Cash Flows

Increase (decrease) in fair value of investments

Cash paid to suppliers for goods and services

Proprietary Funds



CITY OF ALHAMBRA

. GovernmentalActivities –

InternalSewer and Golf course/ Service


Reconciliation of operating income (loss) to net cash provided by (used in)operating activities:

$ 3,354,406 3,419,714 (308,943) 400,309 6,865,486 (1,349,307)

Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities:

Depreciation and amortization 689,180 144,599 40,345 147,667 1,021,791 173,295 (Increase) decrease in accounts receivable (1,297,174) (15,518) 45,351 31,817 (1,235,524) 62,089 (Increase) decrease in inventories 15,182 — — — 15,182 — (Increase) decrease in prepaid items 898 203 — — 1,101 1,990 Increase (decrease) in accounts payable (104,330) 4,526 (8,572) (15,249) (123,625) (152,208) Increase (decrease) in self-insurance claims liability — — — — — 1,096,504 Increase (decrease) in compensated absences 302 2,593 378 — 3,273 (29,651) Increase (decrease) in pension liability 87,602 9,900 24,330 — 121,832 6,489 Increase (decrease) in OPEB liability 99,403 13,989 27,187 — 140,579 12,593 Increase (decrease) in deposits (26,389) — — — (26,389) — Increase (decrease) in retentions payable (54,521) 32,894 — 790 (20,837) 1,968 Other operating cash received 152,657 — 1,320 — 153,977 — Other operating cash paid — — — — — 50,000

Total adjustments (437,190) 193,186 130,339 165,025 51,360 1,223,069 Net cash provided by (used in) operating activities $ 2,917,216 3,612,900 (178,604) 565,334 6,916,846 (126,238)

Statement of Cash Flows

Proprietary Funds


Operating income (loss)


RDASucessor AgencyPrivate Purpose

Assets Trust Fund

Cash and investments $ 11,527,871 Restricted investments 6,390,449 Note receivable 3,170,000 Due from the City of Alhambra 972,132 Deferred charges 990,894 Land held for resale 481,297 Capital assets not being depreciated 5,016,730 Capital assets, net of accumulated depreciation 4,568,161

Total assets and other debits 33,117,534

Liabilities

Liabilities:Accounts payable $ 465,972 Due to the City of Alhambra 6,837,938 Long-term liabilities:

Due within one year 3,691,373 Due in more than one year 36,300,435

Total liabilities 47,295,718

Net assets (deficit):Held in trust for the retirement of obligations of the former

Alhambra Redevelopment Agency $ (14,178,183)

June 30, 2012

CITY OF ALHAMBRA

Statement of Fiduciary Net Assets

Fiduciary Funds


RDASucessor AgencyPrivate Purpose

Trust FundAdditions:

Property taxes $ 4,125,726 Sales taxes 136,936 Use of money and property 446,593

Total additions 4,709,255

Deductions:Enforceable Obligations 701,481 Administration 180,254 Debt forgiveness 67,980 Interest expense 696,657 Depreciation and amortization 113,406

Total deductions 1,759,778

Change in net assets 2,949,477

Transfer of operations from the Alhambra Redevelopment Agency (17,127,661)

Net assets - beginning of period —

Net assets - end of year $ (14,178,183)

CITY OF ALHAMBRAStatement of Changes in Fiduciary Net Assets

Fiduciary FundsFor the five months ended June 30, 2012


Notes to Financial Statements

CITY OF ALHAMBRA

Notes to Basic Financial Statements

June 30, 2012

І Summary of Significant Accounting Policies

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

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

A. Reporting Entity

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

• The Alhambra Redevelopment Agency (Agency) is governed by a five-member board composed of City Council members. Although it is a legally separate entity from the City, the Agency is reported as if it were part of the City because of its purpose to improve the commercial environment, provide low- and moderate-income housing, provide new public improvements, and strengthen the economic base of the City. The Agency’s financial transactions through January 31, 2012 are reported in the accompanying basic financial statements within the debt service and capital projects fund categories and in the other governmental funds column. The Agency was dissolved February 1, 2012. See Notes K. and L. for further discussion. Separate financial statements are not issued.

• The Alhambra Parking Authority is governed by a five-member board composed of City Council members. The Alhambra Parking Authority is inactive at this time; however, it is considered a component unit of the City because of its purpose to provide parking for the business community. Separate financial statements are not issued.

• The Alhambra Golf Course Clubhouse Corporation (Clubhouse Corporation) is governed by a five-member board composed of City Council members. Although it is a legally separate entity from the City, the Clubhouse Corporation is reported as if it were part of the City because of its purpose to provide a Clubhouse complex for the City’s Municipal golf course. The Clubhouse Corporation’s financial transactions are reported in the accompanying basic financial statements within the enterprise funds. Separate financial statements are not issued.

• The Alhambra Capital Improvements Corporation and the Alhambra Public Financing Corporation are governed by a five-member board composed of City Council members. Although separate legal entities from the City, they are reported as if they were part of the City because of their purpose of providing a financing mechanism for capital projects for the City and Agency. 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.

No entities have been excluded from the basic financial statements of the City for which there was a positive response to the reporting entity inclusion criteria..

See independent auditors' report 32 (Continued)

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B. Government-Wide and Fund Financial Statements

The government-wide financial statements consist of the statement of net assets and statement of activities and report information on all of the primary government and its component units and excludes fiduciary funds. As a general rule, the effect of inter-fund activity has been eliminated from the government-wide financial statements. All internal balances in the statement of net assets have been eliminated, with the exception of those representing balances between the governmental activities and the business-type activities, which are presented as internal balances and eliminated in the total government column. In the statement of activities, internal service fund transactions have been eliminated; however, those transactions between governmental and business-type activities have not been eliminated. Exceptions to this general rule are charges between the City’s Water Fund and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support.

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

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

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

C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation

The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Under the economic resources measurement focus, all assets and liabilities (whether current or noncurrrent) associated with their activity are included on their balance sheets. Operating statements present increases (revenues) and decreases (expenses) in total net assets. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows.

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


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remitted to the City, various billings for services rendered, and revenues from the use of money and property, as susceptible to accrual.

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

Proprietary funds are accounted for on a flow of economic resources measurement focus and are maintained on the accrual basis of accounting. Revenues are recognized when they are earned, irrespective of when received, and expenses are recognized when they are incurred. In reporting the financial activity of its Enterprise Funds, the City applies all applicable GASB pronouncements as well as pronouncements of the Financial Accounting Standards Board or its predecessor entities issued on or before November 30, 1989, unless these pronouncements conflict with or contradict GASB pronouncements.

Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the Enterprise Funds and of the City’s Internal Service Funds are charges to customers for sales and services. Operating expense for Enterprise Funds and Internal Service Funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. Unbilled service receivables of $2,321,923 have been accrued at June 30, 2012. 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. • Community Development Block Grant Grant Special Revenue Fund – It is used to account for the operations of the Community Development Block Grant Program. All revenues and expenditures of this fund are restricted to target areas projects as indicated by the HUD committee and in accordance with federal regulations. • Home and Rental Rehabilitation Grant Special Revenue Fund – It is used to account for the operations of the HOME Investment Partnership Program. All revenues and expenditures of this fund are restricted for the purchase or rehabilitation of affordable housing in accordance with federal regulations. • Housing Asset Fund – It is used to account for funds used for low and moderate income housing activities in accordance with the applicable housing-related regulations.

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


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

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

• Special Revenue Funds – are used to account for proceeds of specific revenue sources that are legally restricted or otherwise designated for specific purposes. • Debt Service Funds – are used to account for the collections, and payment of, resources used to repay long-term debt and related interest. • Capital Projects Funds – are used to account for financial resources used for the acquisition or construction of major capital facilities.

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

Additionally, the City reports Fiduciary Fund Financial Statements (Private Purpose Trust Fund) which account for the non-housing related activities of the Successor Agency to the Alhambra Redevelopment Agency. Private-Purpose Trust Funds account for resources legally held in trust. These funds are accounted for on a capital maintenance measurement focus and are maintained on the accrual basis of accounting.

D. Pooled Cash and Investments

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

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

The City’s investments are stated at fair value, in accordance with GASB 31. Fair value is determined based upon market closing prices or bid/asked prices for regularly traded securities. The fair value of


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investment contracts are stated at cost and other investments are estimated based on similarly traded investments. The fair value of mutual funds, government-sponsored investment pools, and other similar investments is stated at share value, or appropriate allocation of fair value of the pool, if separately reported. Certain money market investments with initial maturities at the time of purchase of less than one year are recorded at cost. The calculation of realized gains and losses is independent of the calculation of the net increase or decrease in fair value of investments. Realized gains and losses on investments that had been held in more than one fiscal year and sold in the current fiscal year may have been recognized as an increase or a decrease in fair value of investments reported in a prior year.

E. Receivables and Payables

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

Advances between funds, as reported in the fund financial statements, are classified as nonspendable fund balance in the applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources unless an corresponding deferred revenue is reported.

All accounts, notes, and loans receivable are shown net of an allowance for uncollectible accounts and estimated refunds due. As of June 30, 2012, the allowance for uncollectible accounts for governmental and business-type activities is $0 and $2,114, respectively.

F. Inventories

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

G. Property Held for Resale

Property held for resale in the Special Revenue Funds represents property purchased by the City to be rehabilitated and sold to qualified buyers. Property held for resale is recorded at the lower of cost or estimated net realizable value. Estimated net realizable value is determined by an agreed-upon sales price with potential developers.

H. Capital Assets

Capital assets, which include land, buildings and improvements, equipment, and infrastructure assets (e.g., roads, sidewalks, traffic lights and signals, street lights, and similar items), are reported in the applicable governmental or business-type activities columns in the governmental-wide financial statements. Capital assets are defined by the City as assets with an initial individual cost of $5,000 or more and an estimated useful life in excess of one year. Such assets are recorded at historical cost. Donated capital assets are recorded at estimated fair market value at the date of donation. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives is not capitalized.

Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business-type activities is included as part of


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the capitalized value of the assets constructed. No interest was capitalized during the year ended June 30, 2012.

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

Buildings 15 to 50 yearsStructures and improvements 15 to 50 yearsUtility systems 80 yearsInfrastructure 11 to 85 yearsMachinery and equipment 3 to 10 years

As a result of the implementation of GASB 34, the City is accounting for infrastructure assets on its government-wide financial statements. These statements include not only those infrastructure assets that were either completed during the current fiscal year or considered construction in progress at current fiscal year-end, but also those infrastructure assets completed prior to July 1, 2002.

I. Compensated Absences

It is the policy of the City to pay accumulated vacation and vested sick leave benefits to employees upon retirement or termination of employment. All vacation is accrued when incurred in the government-wide and proprietary fund financial statements. A liability is reported in the governmental funds only if they have matured, for example, as a result of employee resignations or retirements.

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

Employees may accumulate sick leave without limitation as to the number of hours. Accumulated sick leave is paid upon retirement for up to a maximum of 25 days of sick leave provided the employee has accumulated 100 days of sick leave and 15 years of service.

J. Net Assets and Fund Balances

In the government-wide financial statements and proprietary funds financial statements, net assets are reported in three categories: net assets invested in capital assets, net of related debt; restricted net assets; and unrestricted net assets. Net assets invested in capital assets, net of related debt represent capital assets less accumulated depreciation and reduced by outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those assets. Net assets invested in capital assets, net of related debt does not include the unspent proceeds of capital debt. Restricted net assets represent net assets restricted by parties outside of the City (such as creditors, grantors, contributors, laws, and regulations of other governments). All other net assets are considered unrestricted.

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

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


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

• Restricted Fund Balance – This classification includes amounts that can be spent only for specific purposes stipulated by constitution, external resource providers or through enabling legislation.

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

• Assigned Fund Balance – This classification includes amounts to be used by the government for specific purposes but do not meet the criteria to be classified as restricted or committed. In governmental funds, other than the general fund, assigned fund balance represents the remaining amount that is not restricted or committed. The City Council has by resolution authorized the City Manager to assign fund balance. The City Council may also assign fund balance as it does when appropriating fund balance to cover a gap between estimated revenue and appropriations in the subsequent year’s appropriated budget. Unlike commitments, assignments generally only exist temporarily. In other words, an additional action does not normally have to be taken for the removal of an assignment.

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

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

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

K. Self-Insurance Programs

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, 2012 is based on the independent claim manager’s estimate of probable losses plus an amount estimated for incurred but not reported claims. An Internal Service Fund is used to account for the collection of premiums from various City departments related to workers’ compensation claims and general claims liabilities. Premiums are established based on historical claims experience.

Additionally, the City is a member of the Independent Cities Risk Management Authority (ICRMA), which provides member cities with liability, property and workers compensation coverage. The coverage is provided through self-insurance or traditional purchase of insurance. Specific coverage for general liability includes comprehensive and general automotive liability, personal injury, contractual liability, errors and omissions and certain other coverage. Annual premium payments are paid by member cities


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and are adjusted retrospectively to cover costs. The City has a self-insured retention of $250,000 for each general liability claim and is insured up to $30 million per loss occurrence with ICRMA. The City has a self-insured retention of $500,000 for each workers compensation claim and is insured up to $100 million per claim with ICRMA. (see notes IV.F and V.C.). There have been no settlements that exceeded insurance coverage in the last three years.

L. Property Taxes

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

M. Use of Estimates

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


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II Reconciliation of Fund Financial Statements to Government-Wide Financial Statements

Amounts reported for governmental activities in the statement of net assets are different from those reported for governmental funds in the balance sheet. The following provides a reconciliation of those differences:

Totalgovernmental

activities OtherTotal Long-term Internal adjustments Statement of

governmental assets and Service and net assetsAssets funds liabilities (1) Fund (2) eliminations (3) totals

Cash and investments $ 16,379,084 — 8,077,278 — 24,456,362 Restricted cash and investments 3,017,265 — 14,772 — 3,032,037Receivables:

Accounts 6,449,437

— 2 — 6,449,439Notes 3,658,223

— — — 3,658,223

Loans 4,086,767

— — — 4,086,767Due from other funds 6,196,787

— 1,771,884 (4,321,972) 3,646,699

Due from Successor Agency 6,837,938

— — — 6,837,938Inventorie

s 33,465 — — — 33,465

Deferred charges

— — — 676,625 676,62518,136

— — — 18,136

Advances to other funds

— — — — — Property held for resale 416,808 — — — 416,808Capital assets not being depreciate

d — 24,857,290 237,950 — 25,095,240

Capital assets, net of accumulate

ddepreciation — 119,157,924 606,691 — 119,764,615

Total assets $ 47,093,910 144,015,214 10,708,577 (3,645,347) 198,172,354

Liabilities and Fund Balances

Liabilities:Accounts payabl

e $ 2,004,042 — 315,706 — 2,319,748Accrued liabilities 1,386,104

— — — 1,386,104

Bond interest payabl

e — — — 511,833 511,833Deposits 483,216

— 12,349 — 495,565

Deferred revenu

e 9,297,132 — — (9,297,132) — Retentions payable 53,590 — — — 53,590Due to other funds 4,271,253

— 50,719 (4,321,972) —

Due to Successor Agency 972,132 — — 972,132Advances from other funds

— — — — —

Long-term liabilities — 35,762,374 14,303,680 — 50,066,054

Total liabilities 18,467,469 35,762,374 14,682,454 (13,107,271) 55,805,026

Total fund balances/net assets 28,626,441 108,252,840 (3,973,877) 9,461,924 142,367,328

Total liabilities and fund

balances/net assets $ 47,093,910 144,015,214 10,708,577 (3,645,347) 198,172,354

Prepaid items


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(1) Capital assets used in governmental activities are not current financialresources and, therefore, are not reported in the balance sheet $ 144,015,214

Long-term liabilities are not due and payable in thecurrent period and, therefore, are not reported inthe balance sheet

Certificates of participation $ (19,586,660) (2,574,576)

Assessment bonds (3,580,000) Notes and loans payable (4,046,653) Compensated absences (3,097,792) Capital lease obligations (18,510) Pension liability (2,678,365) OPEB liability (3,325,970) Self-insurance liabilities (11,157,528) Internal Service Funds included in governmental activities 14,303,680 (35,762,374)

$ 108,252,840

(2) Internal Service Funds are used by management to charge the costs of theCity’s self-insurance, compensated absences, and equipment operations toindividuals funds. The allocated assets and liabilities of the Internal Service Funds are included in governmental activities in the statement of net assets $ (3,973,877)

(3) Other adjustments and eliminations

Accrued interest payable for the period between the interest payment date andthe end of the fiscal year is not reported as a payable in governmental funds $ (511,833)

Other long-term assets are not available to pay for current periodexpenditures and, therefore, are deferred in the funds and recognized asrevenues in the statement of activities 9,297,132

Bond issuance costs are recorded when debt is first issued, where as theseamounts are deferred in the statement of net assets. 676,625

$ 9,461,924

Deferred amount on bond issuance


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

Total Statement ofEnterprise net assets

Assets Funds Eliminations (1) totals

Cash and investments $ 24,831,804 — 24,831,804 Restricted cash and investments 1,160,870 — 1,160,870 Accounts receivable 9,036,302 — 9,036,302 Due from other funds — (3,646,699) (3,646,699) Inventories 405,031 — 405,031 Deferred charges 280,759 — 280,759 Prepaid items 20,653 — 20,653 Capital assets:

Land 5,769,073 — 5,769,073 Building, structures, and

improvements 51,276,273 — 51,276,273 Machinery and equipment 3,937,275 — 3,937,275 Construction in progress 249,654 — 249,654

61,232,275 — 61,232,275

Less accumulated depreciation (15,259,498) — (15,259,498)

Total capital assets,net of accumulateddepreciation 45,972,777 — 45,972,777

Total assets 81,708,196 (3,646,699) 78,061,497

Liabilities and Net Assets

Accounts payable 2,613,681 — 2,613,681 Due to other funds 1,874,815 (1,874,815) — Deposits 411,694 — 411,694 Retentions payable 46,686 — 46,686 Long-term liabilities:

Due within one year 878,630 — 878,630 Due in more than one year 13,544,088 — 13,544,088

Total liabilities 19,369,594 (1,874,815) 17,494,779

Total net assets $ 62,338,602 (1,771,884) 60,566,718

(1) The interfund payable resulting from a cash overdraft of $1,874,815 between enterprise funds and governmental funds is being eliminated. Also, the costs in excess of charges to business-typeactivities from internal service funds is $1,771,884.


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III Stewardship, Compliance, and Accountability

A. Budgetary Information

The City adheres to the following general procedures in establishing its annual budget, which is reflected in the accompanying basic financial statements:

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

• The City Manager is authorized to transfer appropriations within any fund. Expenditures may not exceed appropriations at the fund total level without approval by the City Council/Agency Governing Board. The budgeted amounts used in the basic financial statements represent the final adjusted amounts, which were increased approximately $804,893 due to supplemental appropriations made by the City Council/Agency Governing Board during the year.

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

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

• Unexpended or unencumbered budget appropriations lapse at the end of the fiscal year. Encumbered appropriations are reappropriated in the ensuing year’s budget by action of the City Council/Agency Governing Board.

B. Deficit Fund Balances, Accumulated Deficits, and Budget Overages

The following funds had deficit fund balances or net deficits at June 30, 2012:

Other Governmental Funds:Transportation Capital Improvement - Special Revenue Fund 598,147 Capital Outlay Fund - Capital Projects Fund 305,143

Enterprise Funds:Sanitation Funds 50,242

Internal Service Funds:Self-Insurance 7,401,964

• The fund deficit in the Transportation Capital Improvements Fund is expected to be eliminated through future grant revenues.

• The fund deficit in the Capital Outlay Fund is expected to be eliminated through future transfers from the General Fund.

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

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


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IV Detailed Notes on all Funds

A. Cash and Investments

Cash and investments as of June 30, 2012 are classified in the accompanying financial statements as follows:

Statement of Net Assets:Cash and investments $ 49,288,166 Restricted cash and investments 4,192,907

Total cash and investments $ 53,481,073

Cash and investments as of June 30, 2012 consist of the following:

Cash on hand $ 22,475 Deposits with financial institutions 13,135,022 Investments 40,323,576


1. Deposits

Custodial credit risk-deposits In the case of deposits, this is the risk that in the event a bank failure, the government’s deposits may not be returned to it. The California Government Code requires California banks and savings and loan associations to secure a city’s deposits by pledging government securities as collateral. The fair value of pledged securities must equal at least 110% of a city’s deposits. California law also allows financial institutions to secure city deposits by pledging first trust deed mortgage notes having a value of 150% of a city’s total deposits. At June 30, 2012, the carrying amount of the City’s restricted and unrestricted deposits (including cash and certificates of deposit) was $13,135,022 while the corresponding bank balances were $13,427,894, which was entirely covered by federal depository insurance or collateralized in accordance with state law. The difference between the carrying amount of deposits and the corresponding bank balance is due to outstanding checks at year-end.


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2. Investments

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

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

Authorized Investment Type

Maximum Maturity

Maximum Percentage Portfolio

Maximum Investment

In One Issuer

U.S. Treasury Securities 5 years None None U.S. Government Agency Securities 5 years 50% 30% Banker’s Acceptances 180 days 40% 5% Commercial paper 270 days 25% 5% Negotiable Certificates of Deposit 5 years 30% 5% Repurchase Agreements 30 days None 5% Medium-Term Notes 5 years 30% 5% Receivable-Backed Securities 5 years 20% 5% Money Market Mutual Funds N/A 20% 10% Local Agency Investment Funds (LAIF) N/A None None

Investments authorized under debt agreements

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


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Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment the greater the sensitivity of its fair value to changes in market interest rates. In accordance with its policy, the City manages its exposure to declines in fair values by limiting the weighted average maturity of its investment portfolio as a whole to 365 days. Investments held by trustee are not subject to the 365 day maturity limitation.

Investment Type Weighted Average

Maturity (in years) Local Agency Investment Fund $ 38,347,615 Overnight Money Market Funds 168,090 Overnight Held by Bond Trustee:

Money Market Funds 31,828 Overnight Investment Agreements 1,776,043 10.94 Total $ 40,323,576

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

Rating as of Year End

Investment Type

Minimum

Legal Rating

AAA

AA+

AA-

Unrated Local Agency Investment Fund $38,347,615 None 38,347,615 Money Market Funds 168,090 A 168,090 Held by bond trustee: Money Market Funds 31,828 A 31,823 Investment Agreements 1,776,043 N/A 1,129,043 647,000

Total $40,323,576


CITY OF ALHAMBRA


June 30, 2012

Concentration of Credit Risk The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. There are no investments in any one issuer (other than U.S. Treasury securities, mutual funds, and external investment pools) that represent 5% or more of the total City investments. Custodial Credit Risk – Investments For an investment, this is the risk that, in the event or the failure of the counterparty, the government will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. To protect against fraud, embezzlement, or losses caused by collapse of individual securities dealers, all securities owned by the City (except for investments held by bond trustee) are held in safekeeping by the City’s custodial bank or a third party bank trust department, acting as agent for the City under the terms of a custody agreement. Investments of $1,807,871 were purchased and held by the bond trustee.

3. State Treasurer’s Local Agency Investment Funds

The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.

4. Restricted Cash and Investments

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

B. Receivables

1. Notes Receivables

The City provides funds for the development of low- and moderate-income housing and provides assistance for the purchase of rehabilitated low- and moderate-income housing. The terms of most of the notes do not require repayment until certain conditions are met and the timing of these conditions is generally indeterminate (e.g., upon sale of the related property). The notes receivable balance at June 30, 2012 is $3,658,223.

2. Loans Receivables

The City grants below-market interest rate or no interest loans for the rehabilitation of low- and moderate-income housing and grants for first-time home buyers. The terms of most of the loans do not require repayment until the sale of the related property. The loans receivable balance at June 30, 2012 is $4,086,767.


CITY OF ALHAMBRA


June 30, 2012

C. Capital Assets

Capital assets activity for the primary government for the year ended June 30, 2012 is as follows:

Balances at Transferred to Balances atJune 30, 2011 Additions Deletions Trust Fund June 30, 2012

Governmental activities:Capital assets, not being depreciated:

Land $ 27,824,696 — — (5,498,027) 22,326,669 Construction in progress 3,651,599 1,707,288 (2,590,316) — 2,768,571

Total capital assets, notbeing depreciated 31,476,295 1,707,288 (2,590,316) (5,498,027) 25,095,240

Capital assets, being depreciated:Buildings, structures, and

improvements 89,277,332 — — (6,624,523) 82,652,809 Machinery and equipment 17,683,566 499,661 (686,795) (15,000) 17,481,432 Infrastructure 93,883,996 6,433,426 (3,394,186) — 96,923,236

Total capital assets,being depreciated 200,844,894 6,933,087 (4,080,981) (6,639,523) 197,057,477

Less accumulated depreciation for:Buildings, structures, and

improvements (21,639,992) (1,735,959) — 1,994,565 (21,381,386) Machinery and equipment (13,194,186) (1,153,100) 686,795 15,000 (13,645,491) Infrastructure (42,944,748) (2,016,270) 2,695,033 — (42,265,985)

Total accumulateddepreciation (77,778,926) (4,905,329) 3,381,828 2,009,565 (77,292,862)

Total capital assets, beingdepreciated, net 123,065,968 2,027,758 (699,153) (4,629,958) 119,764,615

Subtotal governmental activities 154,542,263 3,735,046 (3,289,469) (10,127,985) 144,859,855


CITY OF ALHAMBRA


June 30, 2012

Balances at Transferred to Balances atJune 30, 2011 Additions Deletions Trust Fund June 30, 2012

Business-type activities:Capital assets, not being depreciated:

Land $ 5,769,073 — — — 5,769,073 Construction in progress 105,598 210,552 (66,495) — 249,655

Total capital assets, notbeing depreciated 5,874,671 210,552 (66,495) — 6,018,728


improvements 17,849,713 — — — 17,849,713 Utility systems 33,161,225 457,079 (191,744) — 33,426,560 Machinery and equipment 3,798,902 138,372 — — 3,937,274

Total capital assets,being depreciated 54,809,840 595,451 (191,744) — 55,213,547


improvements (4,661,561) (363,262) — — (5,024,823) Utility systems (7,376,903) (393,885) 11,312 — (7,759,476) Machinery and equipment (2,210,555) (264,644) — — (2,475,199)

Total accumulateddepreciation (14,249,019) (1,021,791) 11,312 — (15,259,498)

Total capital assets, beingdepreciated, net 40,560,821 (426,340) (180,432) — 39,954,049

Subtotal business-typeactivities 46,435,492 (215,788) (246,927) — 45,972,777

Total $ 200,977,755 3,519,258 (3,536,396) (10,127,985) 190,832,632

Capital assets for Internal Service Funds included within governmental activities in the above table for the year ended June 30, 2012 is as follows:

Balances at Balances atJuly 1, 2011 Additions Deletions June 30, 2012

Internal Service Funds included ingovernmental activities:

Land $ 237,950 — — 237,950 Machinery and equipment 6,316,165 271,454 — 6,587,619 Less accumulated depreciation

for machinery and equipment (5,807,633) (173,295) — (5,980,928)

Total $ 746,482 98,159 — 844,641


CITY OF ALHAMBRA


June 30, 2012

The following table summarizes the changes in capital assets for the year ended June 30, 2012 for the water system network:

Water System Network:

Balance as of Balance as of Capital Asset Type June 30, 2011 Additions Deletions June 30, 2012

Land $ 1,923,817 — — 1,923,817 Building 1,729,797 — — 1,729,797 Structure and improvement 9,030,987 — — 9,030,987 Water lines 15,614,523 42,950 (273) 15,657,200 Water reservoir and pump stations 7,216,246 — — 7,216,246 Water wells 2,828,731 138,916 (190,473) 2,777,174 Machinery and equipment 1,063,763 38,783 — 1,102,546 Motor vehicle 1,042,181 — — 1,042,181 Construction in progress 42,640 21,900 (42,640) 21,900 Less accumulated depreciation for

water system network (6,627,609) (689,180) 11,094 (7,305,695)

Totals – net of accumulateddepreciation $ 33,865,076 (446,631) (222,292) 33,196,153

The following table summarizes the changes in capital assets for the year ended June 30, 2012 for the storm drain and sewer system networks:

Storm Drain and Sewer System Network:

Balance as of Balance as of Capital Asset Type July 1, 2011 Additions Deletions June 30, 2012

Land $ 169,595 — — 169,595 Storm drain line 1,398,521 — — 1,398,521 Storm drain pump station 47,440 — — 47,440 Storm drain catch basins 56,304 — — 56,304 Sewer lines 4,859,177 275,213 (997) 5,133,393 Sewer lift and pump stations 1,140,283 — — 1,140,283 Machinery and equipment 25,436 99,589 — 125,025 Motor vehicle 757,199 — — 757,199 Construction in progress 62,958 188,652 (23,856) 227,754 Less accumulated depreciation for

storm drain and sewer systemnetwork (2,846,838) (144,600) 219 (2,991,219)

Totals – net of accumulateddepreciation $ 5,670,075 418,854 (24,634) 6,064,295


CITY OF ALHAMBRA


June 30, 2012

The following table summarizes the changes in capital assets for the year ended June 30, 2012 for the Sanitation Fund:

Sanitation:Balance as of Balance as of

Capital Asset Type July 1, 2011 Additions Deletions June 30, 2012

Structure and improvement $ 22,129 — — 22,129 Motor vehicles 886,446 — — 886,446

Less accumulated depreciation for sanitation (688,950) (40,345) — (729,295)

Totals – net of accumulated depreciation $ 219,625 (40,345) — 179,280

.

The following table summarizes the changes in capital assets for the year ended June 30, 2012 for the golf course and clubhouse:

Golf course/Clubhouse:Balance as of Balance as of

Capital Asset Type July 1, 2011 Additions Deletions June 30, 2012

Land $ 3,675,661 — — 3,675,661 Building – golf course 512,215 — — 512,215 Club house – golf course 5,557,319 — — 5,557,319 Structure and improvement –

driving range 997,266 — — 997,266 Machinery and equipment 23,877 — — 23,877 Less accumulated depreciation for

golf course (4,085,622) (147,667) — (4,233,289)

Totals – net of accumulated depreciation $ 6,680,716 (147,667) — 6,533,049


CITY OF ALHAMBRA


June 30, 2012

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

Governmental activities:General government $ 162,685 Public safety 770,347 Public works 2,858,676 Housing, health, and community development 26,372 Culture and recreation 913,954 Internal service fund assets allocated to various functions based on usage 173,295

Total depreciation expense – governmental activities $ 4,905,329

Business-type activities:Water $ 689,180 Sewer and storm drain 144,599 Sanitation 40,345 Golf course/clubhouse 147,667

Total depreciation expense – business-type activities $ 1,021,791

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

Project Expended Remainingauthorization to date commitment

Property rehabilitation $ 385,849 189,377 196,472 Pool renovation 360,500 348,000 12,500 Water well rehabilitation 147,200 21,900 125,300

$ 893,549 559,277 334,272


CITY OF ALHAMBRA


June 30, 2012

D. Interfund Accounts

Individual fund interfund receivables, payables, and transfers at June 30, 2012 are:

Due from Due toother funds other funds Transfers in Transfers out

General Fund $ 4,126,673 62,067 2,456,836 1,791,757 Community Development Block

Grants 990,687 2,402,066 — 187,583 Home and Rental Rehabilitation

Grants — 19,264 — 4,434

Special Revenue Funds:TDA Bikeway — 11,459 — — State Gas Tax — — 507,288 17,717 Proposition A – Transportation — — — 92,296 Proposition C – Transportation 149,494 — 313,318 70,250 Lighting and Landscape

Maintenance — — — 768,841 Police Facility Assessment — — — 2,247,553 Transportation Capital Improvement — 548,874 10,911 325,191 Low- and Moderate Income

Housing — — — 76,868

Debt Service Funds:Community Improvement — — 341,912 — Lighting and Sidewalk

Construction — — 588,989 — Police Facility — — 2,159,475 — Tax Allocation Bonds — — — 1,548,779

Capital Projects Funds:Capital Outlay 929,933 1,227,523 97,284 — Central Business District — — — 115,796 Industrial Project — — 1,756,964 259,467

1,079,427 1,787,856 5,776,141 5,522,758

Enterprise Funds:Water — — 255,949 412,554 Sewer and Storm Drain — — — 269,911 Sanitation — 58,677 207,014 108,812 Golf Course/Clubhouse — 1,816,138 — 208,148

— 1,874,815 462,963 999,425

Internal Service Funds:Equipment — — 49,013 88,524 Self-Insurance — 50,719 2,030,354 2,180,826

— 50,719 2,079,367 2,269,350

$ 6,196,787 6,196,787 10,775,307 10,775,307 Total

Total Enterprise Funds

Total Internal Service Funds

Other Governmental Funds

Total other Governmental Funds


CITY OF ALHAMBRA


June 30, 2012

The outstanding interfund receivables and payable balances result primarily from temporary operating cash loans and from the time lag between the dates that (1) interfund goods and services are provided or reimbursable expenditures occur, (2) transactions are recorded in the accounting system, and (3) payments between funds are made.

Transfers were used to 1) move revenues from the fund with collection authorization to the debt service fund as debt service principal and interest payments become due, 2) move unrestricted revenues to finance various programs accounted for in other funds including amounts provided as subsidies or matching funds for various grant programs, and 4) move unrestricted general fund balance to various funds with deficit fund balances.

E. Bank Notes Payables

In October 2011, the City entered into a revolving line of credit agreement with a bank, which provided for a maximum borrowing of $3,000,000. The loan is unsecured and is to be repaid from the General Fund of the City and other amounts legally available. Any outstanding principal balance on the loan shall bear interest at the bank base rate or LIBOR rate plus 2% per annum. The line of credit expires on October 21, 2012. The City did not borrow any funds on the line of credit during the current fiscal year and there is no amount outstanding at June 30,2012.


CITY OF ALHAMBRA


June 30, 2012

F. Long-Term Liabilities

Changes in long-term liabilities for the year ended June 30, 2012 were as follows: Balances, Transferred to Balances, Due within

June 30, 2011 Additions Retirements Trust Fund June 30, 2012 one yearGovernmental activities:

Tax allocation refunding bonds $ 23,170,000 — — (23,170,000) — — Add deferred amount on refunding 759,852 — (49,250) (710,602) — — Tax allocation bonds 16,805,000 — — (16,805,000) — — Add deferred amount on issuance 77,608 — (5,030) (72,578) — — Less bond discount (7,408) — 480 6,928 — —

40,805,052 — (53,800) (40,751,252) — — Alhambra Capital Improvements

Corporation – certificatesof participation 21,256,220 — (1,669,560) — 19,586,660 1,733,720

Add deferred amount on issuance 2,805,827 — (230,555) — 2,575,272 — Less bond discount (1,045) — 349 — (696) — Public works maintenance and —

improvement bonds 3,980,000 — (400,000) — 3,580,000 425,000 Notes and loans payable 4,572,400 — (525,747) — 4,046,653 563,257 Compensated absences 3,154,295 2,445,611 (2,502,114) — 3,097,792 289,206 Contractual obligations 2,952,079 — (158,119) (2,793,960) — — Capital lease obligations (IV.G.) 37,941 — (19,431) — 18,510 18,510 Pension liability (V.E.) 1,904,059 1,026,485 (252,179) — 2,678,365 — OPEB liability (V.F.) 2,296,924 1,192,779 (163,733) — 3,325,970 — Self-insurance liabilities 10,061,024 2,885,036 (1,788,532) — 11,157,528 1,646,462

Subtotal governmental activities 93,824,776 7,549,911 (7,763,421) (43,545,212) 50,066,054 4,676,155 Business-type activities:

Water: Certificates of participation $ 12,250,000 — (600,000) — 11,650,000 625,000 Add deferred amount on issuance 6,969 — (465) — 6,504 —

Compensated absences 298,859 362,932 (362,630) — 299,161 27,926 Loan payable 1,566,250 — (195,781) — 1,370,469 195,781 Pension liability (V.E.) 263,428 120,653 (33,051) — 351,030 — OPEB liability (V.F.) 237,909 112,332 (12,929) — 337,312 —

Sewer and storm drain:Compensated absences 36,082 41,554 (38,961) — 38,675 3,612 Pension liability (V.E.) 33,302 13,968 (4,068) — 43,202 — OPEB liability (V.F.) 28,856 15,631 (1,642) — 42,845 —

Sanitation:Compensated absences 53,490 65,483 (65,105) — 53,868 5,031 Pension liability (V.E.) 56,844 31,973 (7,643) — 81,174 — OPEB liability (V.F.) 52,951 30,259 (3,072) — 80,138 —

Golf course/clubhouse:Alhambra Capital Improvements

Corporation – certificatesof participation 88,780 — (20,440) — 68,340 21,280

Subtotal business-type activities 14,973,720 794,785 (1,345,787) — 14,422,718 878,630 Total long-term liabilities $ 108,798,496 8,344,696 (9,109,208) (43,545,212) 64,488,772 5,554,785


CITY OF ALHAMBRA


June 30, 2012

Long-term liabilities at June 30, 2012 consist of:

(1) Governmental Activities

Bond and Certificate Indebtedness

• Tax Allocation Bonds – In 2003, the Agency issued $38,070,000 term tax allocation refunding bonds, which mature in amounts from $1,300,000 to $3,270,000, plus interest at 3.0% to 5.0% through May 1, 2020. Bond proceeds were used to refund the remaining outstanding amounts of $18,200,000 on the $18,200,000 Tax Allocation Refunding Bonds, Series 1993, $3,035,000 on the $3,740,000 Tax Allocation and Refunding Bonds, Series 1993B, $14,065,000 on the $19,650,000 Series 1996 Tax Allocation Bonds and to satisfy reserve requirements. As of June 30, 2011 all refunded bonds have been redeemed.

Bonds maturing on or after May 1, 2014 are subject to optional redemption at the option of the Agency equal to principal, plus accrued interest, without premium. Bonds maturing on or after May 1, 2014 are also subject to mandatory redemption from and to the extent of tax revenues paid to the trustee for deposit pursuant to the Indenture, at a redemption price equal to principal, plus accrued interest, without premium. At January 31, 2012, $23,170,000 was outstanding and was transferred to the Successor Agency on February 1, 2012 due to dissolution of the Agency.

In 2005, the Agency issued $15,445,000 Series A serial and term tax allocation bonds, which mature in amounts from $565,000 to $4,270,000, plus interest at 2.875% to 5.0% through May 1, 2021. Bond proceeds were used to finance redevelopment activities and to satisfy reserve requirements.

Bonds maturing on or after May 1, 2014 are also subject to mandatory redemption from and to the extent of tax revenues paid to the trustee for deposit pursuant to the Indenture, at a redemption price equal to principal, plus accrued interest, without premium. At January 31, 2012, $11,825,000 was outstanding and were transferred to the Successor Agency on February 1, 2012 due to dissolution of the Agency.

In 2005, the Agency issued $7,215,000 Series B serial and term tax allocation bonds, which mature in amounts from $205,000 to $605,000, plus interest at 3.0% to 4.0% through May 1, 2021. Bond proceeds were used to finance redevelopment activities and to satisfy reserve requirements. The bonds are issued subordinate to the 2005 Series A $15,445,000 Senior Tax Allocation Bonds and the 2003 $38,070,000 Refunding Tax Allocation Bonds.

Bonds maturing on or after May 1, 2014 are subject to optional redemption at the option of the Agency equal to principal, plus accrued interest, without premium. Bonds maturing on or after May 1, 2014 are also subject to mandatory redemption from and to the extent of tax revenues paid to the trustee for deposit pursuant to the Indenture, at a redemption price equal to principal, plus accrued interest, without premium. At January 31, 2012, $4,980,000 was outstanding and was transferred to the Successor Agency on February 1, 2012 due to dissolution of the Agency.

• Certificates of Participation – In 1992, the Alhambra Capital Improvements Corporation issued $27,000,000 serial and term certificates of participation maturing in increasing amounts from $135,000 to $2,000,000, plus interest at 4.80% to 6.75% through September 1, 2023. Certificates maturing on or after September 1, 2001 are subject to redemption at the option of the Corporation at a price of 102% to 100% of principal value. Debt service on the certificates is provided from a lease payment made by the City using monies collected from a Citywide Public Facility Assessment District. In August 2006, the City reoffered the outstanding balance of $22,140,000 of the 1992 Certificates of Participation by the purchase of the outstanding certificates through redemption and the sale of the certificates and optional redemption rights to the underwriter resulting in a net gain of


CITY OF ALHAMBRA


June 30, 2012

$3,149,832 (net of issuance costs of $1,000,168) to finance the acquisition and construction of certain public capital facilities. The interest rate on the reoffered Certificates remains unchanged. At June 30, 2012, $17,290,000 was outstanding.

In 2005, the Alhambra Capital Improvement Corporation (the Corporation) issued $6,410,000 serial and term certificates of participation maturing in increasing amounts from $610,000 to $815,000, plus interest at 2.625% to 3.3% through September 1, 2014. The Certificates were used to refinance the remaining amount of $5,480,000 on the Certificates of Participation, Series 1989 and to finance capital improvement projects. The proceeds from the $6,410,000 certificates of participation were used to purchase U.S. Government securities that were placed in an irrevocable trust to repay the outstanding amount of the 1989 Certificates of Participation on September 1, 2005. As of June 30, 2012 all refunded bonds have been redeemed.

The 2005 Certificates are not subject to optional prepayment. Debt service on the certificates is provided from City lease payments. At June 30, 2012, $2,296,660 and $68,340 were outstanding in the Governmental Activities and Golf Course Business-type Activities, respectively.

• Public Works Maintenance and Improvements Assessment District Refunding Bonds – In 1994, the City issued $8,300,000 serial and term refunding improvement bonds related to the Public Works Maintenance and Improvements Assessment District No. 1 to advance refund the 1986 $9,930,000 improvement bonds. The bonds are secured by unpaid assessments of the assessment district and mature in increasing amounts from $180,000 to $605,000, plus interest at interest rates ranging from 3.5% to 6.125% through September 2, 2018. The bonds maturing on or after September 2, 2002 are subject to redemption at the option of the City at any time prior to the maturity date of the bonds at a price of 102% to 100% of principal value. The term bonds, maturing on September 2, 2018, are subject to mandatory redemption. Debt service payments are made from special assessment revenues and City General Fund contributions as necessary. At June 30, 2012, $3,580,000 was outstanding.

Notes, Loans, and Other Long-Term Debt

• Bank Notes Payable – In December 2006, the City entered into an agreement with Banc of America Public Capital Corporation to fund the purchase of a new and upgraded heating, ventilation and air conditioning system for city facilities. Quarterly payments of $70,496 at an interest rate of 3.88% are due through December 13, 2021. At June 30, 2012, $2,231,653 was outstanding.

• HUD Section 108 Notes Payable – In 2008, the City entered into a $1,605,000 Section 108 note payable (Series 2008-A) with the U.S. Department of Housing and Urban Development . The notes have semiannual payments ranging from $6,387 to $301,387 at rates ranging from 2.62% to 4.33% due through August 1, 2015. The notes were used to refinance $1,605,000 of the outstanding balance of $1,770,000 of the $3,000,000 Section 108 note payable (Series 1996-A) with the U.S. Department of Housing and Urban Development which the City entered into May 1996 to fund improvements at Fremont Plaza. The notes are secured by a second position in net lease revenues generated from the Fremont Plaza project (note G.); however, repayment will be made from the City’s annual CDBG allocation. In the event the CDBG allocation is not sufficient for repayment, lease revenues will be needed to repay the note. At June 30, 2012, a total of $1,020,000 was outstanding.

Also in 2008, the City entered into a $1,155,000 Section 108 note payable (Series 2008-A) with the U.S. Department of Housing and Urban Development. The notes have semiannual payments ranging from $3,920 to $178,920 at rates ranging from 2.62% to 4.33% due through August 1,


CITY OF ALHAMBRA


June 30, 2012

2016. The notes were used to refinance $1,155,000 of the outstanding balance of $1,255,000 of the $2,025,000 Section 108 note payable (Series 1997-A) with the U.S. Department of Housing and Urban Development which the City entered into October 1997 to fund improvements on Main Street. Repayment will be made from the City’s annual CDBG allocation. At June 30, 2012, a total of $795,000 was outstanding.

Contractual Obligations – The Agency entered into various disposition and development agreements (DDAs) or owner participation agreements (OPAs) with several developers. The agreements are structured such that the Agency pays for specified off-site improvements and other costs of preparing land for development in the City’s redevelopment project areas. At January 31, 2012, $2,793,960 was recorded as a liability for the total estimated costs and was transferred to the Successor Agency on February 1, 2012 due to dissolution of the Agency.

(2) Business-type Activities

• Water System Revenue Certificates of Participation – In 2006 the Alhambra Capital Improvements Corporation, a nonprofit corporation of the City, issued $14,735,000 serial certificates of participation, which mature in increasing amounts from $340,000 to $1,080,000, plus interest ranging from 4.0% to 4.5% through March 1, 2026. Certificate proceeds were used to fund the acquisition and construction of capital improvements, including but not limited to a water treatment facility, and to satisfy reserve requirements. The City under an installment purchase agreement shall make installment payments sufficient to service the debt. The payments are payable from water system net revenues. At June 30, 2012, $11,650,000 was outstanding.

• Loan Payable – In August 2004, the City entered into an agreement with San Gabriel Valley Municipal Water District to fund the purchase of groundwater treatment equipment. The funds were received by the City in April 2006. Ten annual payments of $195,781 at an interest rate of 0% are due beginning September 2009. At June 30, 2012, $1,370,469 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 $3,097,792 at June 30, 2012 for governmental activities and $391,704 for business-type activities.


CITY OF ALHAMBRA


June 30, 2012

(4) Self-Insurance Liability

Claims liability of $11,157,528 reported in the Self-Insurance Internal Service Fund at June 30, 2012 is based on requirements of GASB Statement 10, which requires that a liability for claims be reported if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. Changes in the Fund’s claims liability amount during the two fiscal years ended June 30, 2012 were:

2012 2011Balance, July 1 $ 10,061,024 6,551,414 Claims and changes in estimates 2,885,036 5,121,756 Claim payments (1,788,532) (1,612,146) Balance, June 30 $ 11,157,528 10,061,024

(5) Future Minimum Debt Service Requirements

Annual debt service requirements to maturity are as follows:

Governmental Activities:

Certificates of Participation Assessment bonds Notes and loans payablePrincipal Interest Principal Interest Principal Interest

Year ending June 30:2013 1,733,720 1,196,412 425,000 206,260 563,257 151,661 2014 1,807,880 1,103,430 450,000 179,463 596,062 119,161 2015 1,900,060 1,005,321 480,000 150,982 634,174 79,329 2016 1,180,000 914,962 510,000 120,663 687,605 79,867 2017 1,260,000 832,612 540,000 88,506 406,369 89,926 2018-2022 7,825,000 2,703,910 1,175,000 73,040 1,159,186 109,659 2023-2027 3,880,000 265,950 — — — —

19,586,660 8,022,597 3,580,000 818,914 4,046,653 629,603 Add deferred amount on issuance 2,575,272 — — — — — Less bond discount (696) — — — — —

Total $ 22,161,236 8,022,597 3,580,000 818,914 4,046,653 629,603

Others* TotalPrincipal Interest Principal Interest

Year ending June 30:2013 1,954,178 552 4,676,155 1,554,885 2014 — — 2,853,942 1,402,054 2015 — — 3,014,234 1,235,632 2016 — — 2,377,605 1,115,492 2017 — — 2,206,369 1,011,044 2018-2022 — — 10,159,186 2,886,609 2023-2027 — — 3,880,000 265,950 Indeterminate 18,323,987 — 18,323,987 —

Total 20,278,165 552 47,491,478 9,471,666 Add deferred amount on issuance — — 2,575,272 — Less bond discount — — (696) —

$ 20,278,165 552 50,066,054 9,471,666

* Others consist of compensated absences, capital leases, OPEB, pension, and self-insurance liabilities.


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Business-type Activities:

Certificates of Participation Others*

Principal Interest Principal Principal InterestYear ending June 30:

2013 646,280 503,455 232,350 878,630 503,4552014 677,120 474,630 195,781 872,901 474,6302015 704,940 444,420 195,781 900,721 444,4202016 710,000 416,843 195,781 905,781 416,8432017 740,000 384,863 195,781 935,781 384,8632018-2022 4,185,000 1,444,079 391,564 4,576,564 1,444,079 2023-2027 4,055,000 454,113 — 4,055,000 454,113 Indeterminate — — 1,290,836 1,290,836 —

11,718,340 4,122,403 2,697,874 14,416,214 4,122,403Add deferred amount on issuance 6,504

— — 6,504 0

Total $ 11,724,844 4,122,403 2,697,874 14,422,718 4,122,403

* Others consist of loan payable, compensated absences, OPEB, and pension liabilities.

Total

(6) Advances

Advances at Transferrd to Advances atJuly 1, 2011 Additions Retirements Trust Fund June 30, 2012

Industrial Project Fund:1989 Advance from the City $ 1,823,000 — (430,700) (1,392,300) — 1997 Advance from the City 124,398 — — (124,398) — Advance from Low-and Moderate

Income Housing Fund 4,408,880 — — (4,408,880) — 6,356,278 — (430,700) (5,925,578) —

Low-and Moderate Income Housing Fund:1992 Advance from the Cit

y 301,961 — — (301,961) —

Non-Major Governmental Funds:Advance from Low-and Moderate

Income Housing Fund 610,399 — — (610,399) — $ 7,268,638 — (430,700) (6,837,938) —

• 1989 Advance from the City – In September 1989, the City entered into an agreement to advance proceeds received from the sale of certain off-street vehicular parking and other facilities and property located in the Industrial Project Area. The Agency’s payments to the City are used by the City to make their semiannual lease payments on the 2005 Alhambra Capital Improvements Corporation Certificates of Participation (the 2005 Certificates) which refunded the 1989 Alhambra Capital Improvements Corporation Certificates of Participation. The loan, included in the Community Improvement Debt Service Fund, requires semiannual payments of principal and interest to the extent that surplus tax increment revenues of the Agency are available, pursuant to a repayment contract between the Agency and the City. The Agency is only obligated to repay the City for its share of the annual debt service on the original 1989 Certificates. At January 31, 2012, $1,392,300 was outstanding and was transferred to the Successor Agency on February 1, 2012 due to dissolution of the Agency.


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• 1997 Advance from the City – In March 1997, the Agency entered into a reimbursement agreement with the City’s General Fund for the purchase of land for $291,688. The advance bears interest at 6% and is to be paid over a 20-year period. The Agency sold the land to a developer as part of the Ralph’s Shopping Center. At January 31, 2012, $124,398 was outstanding and was transferred to the Successor Agency on February 1, 2012 due to dissolution of the Agency.

• 1992 Advance from the City – In August 1992, the Agency issued a note to purchase the Police Station from the City for $969,869. A down payment of $500,000 was made with a balance of $469,869 due within 30 days of the City’s vacating the property. The loan bears no interest.

In February 1997, the Agency entered into a reimbursement agreement with the City’s General Fund for the purchase of additional property for $231,335. The reimbursement agreement was added to the August 1992 note and is payable over a 20-year period with interest at 9%. The unpaid portion of this note has been deferred in the City’s Capital Outlay Capital Projects Fund. At January 31, 2012, $301,961 was outstanding and was transferred to the Successor Agency on February 1, 2012 due to dissolution of the Agency.

• In May 2010, the Central Business District and Industrial Capital Project Funds were advanced from the Low- and Moderate Income Housing Fund an amount equal to the amount paid to the Supplemental Educational Revenue Augmentation Fund, $506,194 and $3,656,135, respectively. Also in May 2011, the Central Business District and Industrial Capital Project Funds were advanced from the Low- and Moderate Income Housing Fund an amount equal to the amount paid to the Supplemental Educational Revenue Augmentation Fund, $104,205 and $752,745, respectively. At January 31, 2012, $5,019,279 was outstanding and was transferred to the Successor Agency on February 1, 2012 due to dissolution of the Agency.

G. Lease Obligations

The City has entered into capital lease obligations for machinery and equipment purchased under financing leases. The leases require monthly payments of principal and interest, with interest rate of 5.1%. The gross amount of the assets acquired under capital leases is $92,238 and is classified as machinery and equipment within capital assets. The amortization of the leased assets is included as part of depreciation expense and accumulated depreciation at June 30, 2012 is $83,015.

Future minimum lease payments under capital leases and the present value of the net minimum lease payments at June 30, 2012 are:

Governmentalactivities

Year ending June 30:2013 $ 19,062

Total minimum lease payments 19,062

Less amount representing interest (552) Present value of future minimum lease payments $ 18,510


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

Year ending June 30:2013 $ 21,133 2014 21,133 2015 21,133 2016 9,727 2017 1,621

Total minimum paymentsrequired $ 74,747

During the fiscal year, total rental expenditures for all operating leases were $22,444.

V. Other Information

A. Litigation

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

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

B. Contingencies

(1) Low- and Moderate-Income Housing

• The Health and Safety Code Section 33334.2 requires a redevelopment agency to use at least 20% of tax increment revenues generated by a redevelopment project area to increase and improve the supply of low- and moderate-income housing in the community. State Assembly Bill 2080, enacted in September 1989, clarifies that for pre-1977 project areas that defer making the housing set-aside due to existing obligations and/or programs, all deferrals beginning with 1985 – 86 shall be considered deficits to the Low- and Moderate-Income Housing Fund, which the agency is required to eliminate in subsequent years in accordance with a plan to be determined by the agency. For fiscal years 1986 through 2008, the City’s unfunded commitment for its low- and moderate-income housing program from the Redevelopment Agency aggregated $7,747,275. No payments were made July 1, 2011 through January 31, 2012 to the Low- and Moderate-Income Housing Fund. The remaining unfunded commitment at January 31, 2012 was $6,426,275. At January 31, 2012, the remaining unfunded commitment was $6,426,275 and was transferred to the Successor Agency on February 1, 2012 due to dissolution of the Agency.


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(2) No Commitment Debt

The City has issued the special obligations listed below that are payable solely out of revenues derived from the various projects financed by the bonds. Neither the faith and credit nor the taxing power of the City is pledged to the payment of the principal of or interest on any bond; nor is the City in any manner obligated to make any appropriation for payment therefore:

• $6,400,000 Alhambra Redevelopment Agency variable rate demand multifamily Housing Revenue Bonds Series 1999 (4th and Main Street Project). $5,128,301 is outstanding at June 30, 2012.

• $43,940,000 City of Alhambra Revenue Bonds Series 2010 A/B (Atherton Baptist Homes). $35,420,000 is outstanding at June 30, 2012.

C. Insurance Joint Powers Authority

The City is a member of the Independent Cities Risk Management Authority (ICRMA), a joint powers authority formed to enable individual cities to join together to obtain certain casualty and health insurance coverage’s as a group, to self-insure, where necessary, and to obtain adequate liability and worker’s compensation coverages at an affordable cost. ICRMA has 22 member cities at June 30, 2012 and each city appoints one member to the ICRMA Governing Board.

D. Public Employees’ Retirement System

(a) Plan Description

The City’s defined benefit pension plans, the Miscellaneous and Safety Plans (Plans), provide retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. As of July 1, 2004, the City was mandated by the State to participate in the risk pool for the Redevelopment Agency Plan. For the Redevelopment Agency Plan the risk pool combines the assets and liabilities across employers of the risk pool to provide a method to spread the risk of gains and losses over a larger base of members. The Plans are part of the Public Agency portion of the California Public Employees Retirement System (CalPERS), an agent multiple-employer plan administered by CalPERS, which acts as a common investment and administrative agent for participating public employers within the state of California. A menu of benefit provisions as well as other requirements are established by state statutes within the Public Employees’ Retirement Law.

The City selects optional benefit provisions from the benefit menu by contract with CalPERS and adopts those benefits through City ordinance. CalPERS issues a separate comprehensive annual financial report. Copies of CalPERS’ annual financial report may be obtained from the CalPERS Executive Office, 400 P Street, Sacramento, CA 95814.

All full-time employees of the City are eligible to participate in the Plan. Part-time employees and temporary employees who work an average of 20 hours per week and over 1,000 hours per year are also eligible to participate. Upon 5 years of service, miscellaneous employees and public safety employees who retire at or after age 50 are entitled to receive an annual retirement benefit.

The benefit is payable monthly for life, in an amount that varies, from 2.0% at age 50 to a maximum of 2.7% at age 55 for miscellaneous employees and 3.0% at age 50 and over for safety employees, of the employees’ single highest year’s salary for each year of credited service. The Plan also provides death and disability benefits.


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(b) Funding Policy

Active full-time members in the Plan are required to contribute 8% for miscellaneous employees and 9% for safety employees of their annual covered salary. The City makes such employee contributions on their behalf and for their account up to 8% for miscellaneous employees, 9% for police safety employees and fire safety employees. The City is required to contribute the actuarially determined remaining amounts necessary to fund the benefits for its members. The actuarial methods and assumptions used are those adopted by the CalPERS Board of Administration. The required employer contribution rate for the year ended June 30, 2012 was 16.864% for city miscellaneous members and 35.234% for safety members. The contribution requirements of the Plan members are established by state statute, and the employer contribution rate is established and may be amended by CalPERS.

(c) Annual Pension Cost for the Miscellaneous and Safety Plans

For the year ended June 30, 2012, the City’s annual pension cost and its actual contributions were $7,809,825. The City also contributed $2,598,084 on behalf of employees. Employees directly contributed $23,312. Total contributions were $10,431,221.

The required contribution for the year ended June 30, 2012 was determined as part of the June 30, 2009 actuarial valuation using the entry-age-normal-actuarial-cost method with the contributions determined as a percent of pay. The actuarial assumptions included (a) 7.75% investment rate of return (net of administrative expenses); (b) projected salary increases that vary by duration of service ranging from 3.55% to 14.45% for miscellaneous members (from 3.55% to 13.15% for safety members); and (c) 3.25% cost-of-living adjustment. Both (a) and (b) include an inflation component of 3.0%. The actuarial value of the Plan’s assets was determined using a technique that smoothes the effect of short-term volatility in the market value of investments over a three-year period depending on the size of investment gains and/or losses. The Plan’s unfunded accrued liability (or excess assets) is being amortized as a level percentage of projected payroll on a closed basis. The average remaining amortization period as of the June 30, 2009 valuation was 19 years for the City’s miscellaneous employees and 31 years for safety employees.

(d) Three-Year Trend Information for the Plan

Annual Percentage Annual PercentageFiscal years pension cost of APC Net pension pension cost of APC Net pensionended June 30, (APC) contributed obligation (APC) contributed obligation

2012 $ 2,688,062 100% — $ 5,121,763 100% — 2011 2,170,233 100% — 4,343,003 100% — 2010 2,197,709 100% — 3,798,479 100% —

Miscellaneous Plan Safety Plan

(e) Funded Status and Funding Progress

As of June 30, 2011, the most recent actuarial valuation date, the miscellaneous and safety plans were 83.7% and 76.7% funded, respectively. The actuarial accrued liability for benefits was $120,955,781 and $196,920,977 for miscellaneous and safety, respectively, and the actuarial value of assets was $101,296,460 and $151,025,346 for miscellaneous and safety, respectively, resulting in an unfunded actuarial accrued liability (UAAL) of $19,659,321 and $45,895,631 for miscellaneous and safety, respectively. The covered payroll (annual payroll of active employees covered by the plans) were


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$15,834,468 and $14,863,615 for miscellaneous and safety, respectively, and the ratios of the UAAL to the covered payroll were 124.2% and 308.8% for miscellaneous and safety, respectively.

The schedule of funding progress, presented as RSI following the notes to the basic financial statements, presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits.

(f) Annual Required Contribution for the Redevelopment Agency Plan

The contribution requirements of the Redevelopment Agency Plan members and the City are established and may be amended by the State. Plan members are required to contribute 8% of their annual covered salary. The City makes such employee contributions on their behalf and for their account. The required contribution rate for the year ended June 30, 2012 was 21.297% of covered payroll. The City’s contributions to CalPERS for the years ended June 30, 2012, 2011 and 2010 were $51,490, $73,235 and $85,590, respectively, and were equal to the required contributions for each year. As of January 31, 2012 all Redevelopment Agency Plan members were transferred to City Plan due to dissolution of the Agency.

E. Other Pension Benefits

(a) Plan Description

The City provides post-retirement benefits to retirees provided they have the requisite full-time years of service with the City combined with all previous years of service in other public agencies (Health Subsidy Plan). The plan is a defined benefit plan established by the City of Alhambra. Retirees will receive the benefit in effect at the time of retirement. Retirees with 20 years of service currently would receive a benefit of up to $400 a month and retirees with 25 years of service currently would receive a benefit of up to $450. No separate financial statements are available for this plan.

(b) Funding Policy

The contribution requirements of plan members and the City are established and may be amended by the City Council and/or bargaining groups. Currently, contributions are not required from plan members. The City is currently funding these pension obligations on a pay-as-you-go basis. As of June 30, 2012, the City was providing benefits to 62 participants and recorded expenditures of $302,862.

(c) Annual Pension Cost and Net Pension Obligation

The City’s annual pension cost (expense) is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and to amortize any unfunded liabilities of the plan over a period not to exceed thirty years.

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

Annual required contribution $ 1,276,000 Interest on net pension obligation 96,000 Amortization on net pension obligation (173,000) Annual pension cost (expense) 1,199,000 Contributions made (302,862)


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June 30, 2012

Increase in net pension obligation 896,138 Net pension obligation - beginning of year 2,257,633 Net pension obligation - end of year $ 3,153,771


For fiscal year 2012, the City’s annual pension cost (expense) $1,199,000 was equal to the ARC plus interest, less amortization of net pension obligation.

PercentageAnnual of annualPension Actual Pension cost Net Pension

Cost contributions contributed obligation

2012 $ 1,199,000 $ 302,862 25% $ 3,153,771 2011 1,127,000 244,017 22% 2,257,633 2010 922,000 219,862 24% 1,374,650

FiscalYear endedJune 30,


As of June 30, 2010, the most current actuarial valuation date, the plan was zero percent funded. The actuarial accrued liability for benefits was $12,909,000 and the actuarial value of assets was zero, resulting in an unfunded actuarial accrued liability (UAAL) of $12,909,000. The covered payroll (annual payroll of active employees covered by the plan) was $28,390,000 and the ratio of the UAAL to the covered payroll was 45.5%.

Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about rates of employee turnover, retirement, mortality, as well as economic assumptions regarding claim costs per retiree, healthcare inflation and interest rates. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits.

(f) Actuarial Methods and Assumptions

Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and the plan members at that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets consistent with the long-term perspective of the calculations. In the June 30, 2010, actuarial valuation, the entry age normal method was used. The actuarial assumptions included, among others, a discount rate of 4.25% per annum, payroll increases of 3.25% per annum, general inflation of 3% per annum, and a healthcare cost trend rate of 9.5% and 10.0% for Non-medicare and Medicare, respectively, beginning in 2012, reduced annually to an ultimate rate of 5.0% after nine years. The City’s unfunded actuarial accrued liability will be amortized as a level percentage of payroll over closed period of 30 years with a remaining amortization period of 28 years as of June 30, 2010.


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F. Postemployment Benefits Other than Pensions

(a) Plan Descriptions

In connection with the retirement benefits for employees described in Note V.D., the City provides post-retirement medical benefits to retirees through the California Public Employees’ Retirement System Health Benefits program (the PERS Health program). The program is an agent multiple-employer defined benefit health care plan that provides healthcare insurance for eligible retirees. These benefits are available to employees who retire with the City at age 50 or older with at least 5 years of service or those who satisfy certain disability requirements. The City contributes $112 toward the cost of medical coverage for the retiree until the retiree reached age 65 and become eligible for Medicare. After reaching age 65 and becoming eligible for Medicare, the retiree must join one of the Medicare Supplement coverage offers under the PERS Health program. The PERS Health Program does not issue a publicly available financial report.

The City also provides retired City Council persons who retire after 12 years of service on the City Council the same health coverage received by sitting City Council, but shall not be less than substantially the same health care received during the retirees tenure (City Council Plan). The City directly pays or reimburses the actual cost of health insurance premiums for the retired City Council person.

(b) Funding Policy

The contribution requirements of plan members and the City are established and may be amended by the City Council and/or bargaining groups. Currently, contributions are not required from plan members. The City is currently funding these OPEB obligations on a pay-as-you-go basis. For the year ended June 30, 2012, the City paid $146,462 for the PERS Health Program and $34,913 for the City Council Plan in health care costs for its retirees and their covered dependents.

(c) Annual OPEB Cost and Net OPEB Obligation

The City’s annual OPEB cost (expense) is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and to amortize any unfunded liabilities of the plan over a period not to exceed thirty years.

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

PERS Health City Program Council Plan

Annual required contribution $ 1,197,000 $ 244,000 Interest on net OPEB obligation 91,000 20,000 Amortization on net OPEB obligation (164,000) (37,000) Annual OPEB cost (expense) 1,124,000 227,000 Contributions made (146,462) (34,913) Increase in net OPEB obligation 977,538 192,087 Net OPEB obligation - beginning of year 2,375,614 241,026 Net OPEB obligation - end of year $ 3,353,152 $ 433,113


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For fiscal year 2012, the City’s annual OPEB cost (expense) $1,351,000 was equal to the ARC plus interest, less amortization on net OPEB obligation.

PercentageAnnual of annualO PEB Actual OPEB cost Net OPEBCost contributions contributed obligation

2012 $ 1,124,000 $ 146,462 13% $ 3,353,152 2011 1,052,000 142,574 14% 2,375,614 2010 879,000 130,037 15% 1,466,188

PercentageAnnual of annualO PEB Actual OPEB cost Net OPEBCost contributions contributed obligation

2012 $ 227,000 $ 34,913 15% $ 433,113 2011 236,000 33,033 14% 241,026 2010 72,000 37,977 53% 38,059

FiscalYear endedJune 30,

PERS Health Program

FiscalYear ended

City Council Plan

June 30,


PERS Health Program - As of June 30, 2010, the most current actuarial valuation date, the plan was zero percent funded. The actuarial accrued liability for benefits was $10,820,000 and the actuarial value of assets was zero, resulting in an unfunded actuarial accrued liability (UAAL) of $10,820,000. The covered payroll (annual payroll of active employees covered by the plan) was $28,390,000 and the ratio of the UAAL to the covered payroll was 38.1%.

City Council Plan - As of June 30, 2010, the most current actuarial valuation date, the plan was zero percent funded. The actuarial accrued liability for benefits was $1,961,000 and the actuarial value of assets was zero, resulting in an unfunded actuarial accrued liability (UAAL) of $1,961,000. The covered payroll (annual payroll of active employees covered by the plan) was $58,392 and the ratio of the UAAL to the covered payroll was 3,381%.

Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about rates of employee turnover, retirement, mortality, as well as economic assumptions regarding claim costs per retiree, healthcare inflation and interest rates. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits.

(f) Actuarial Methods and Assumptions

Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time


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of each valuation and the historical pattern of sharing of benefit costs between the employer and the plan members at that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets consistent with the long-term perspective of the calculations.

In the June 30, 2010, actuarial valuation, the entry age normal method was used. The actuarial assumptions included, among others, a discount rate of 4.25% per annum, payroll increases of 3.25% per annum, general inflation of 3% per annum, and a healthcare cost trend rate of 9.5% and 10.0% for Non-medicare and Medicare, respectively, beginning in 2012, reduced annually to an ultimate rate of 5.0% after nine years. The City’s unfunded actuarial accrued liability will be amortized as a level percentage of payroll over closed period of 30 years with a remaining amortization period of 28 years as of June 30, 2010.

G. Defined Contribution Plan

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

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

The City’s payroll for employees covered by the plan for the year ended June 30, 2012 was $552,828 and the City’s total payroll for the year was $33,118,229. Both the City and the covered employees made the required 3.75% contributions amounting to $20,732 from each source, or $41,464 in total.

H. Deferred Compensation Plans

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

All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts are held in a custodial account for the exclusive benefit of the employee participants and their beneficiaries.

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


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contributions. As of June 30, 2012, deferred compensation assets are $15,758,582 and have been excluded from the City’s financial statements.

I. Joint Venture

The City is a participant with the County of Los Angeles, California State University at Los Angeles, City of Los Angeles, and the City of Monterey Park in a joint venture to operate the Cal State LA Metrolink Station. The Cal State LA Metrolink Station Authority (the Authority), a joint powers authority, was created to operate and maintain a Metrolink station located adjacent to the California State University at Los Angeles. On dissolution of the Authority, the net assets will be distributed based on each entity’s proportion of their respective contributions during the preceding 12 months. As of June 30, 2012, the respective contributions were as follows:

County of Los Angeles 25.0% Cal State University at LA 12.5% City of Alhambra 25.0% City of Los Angeles 25.0% City of Monterey Park 12.5%

Each entity is obligated to contribute annually the above percentages of the Authority’s budget. The City’s equity interest in the Authority is $28,322 at June 30, 2012. Complete financial statements for the Authority can be obtained from the City of Alhambra, 111 South First Street, Alhambra, California 91801.

J. Restatement of Fund Balances/Net Assets

Beginning fund balances were restated as follows:

OtherGeneral GovernmentalFund Funds

Fund balances as previously reported (1) $ 10,045,306 35,206,835 To record payable to Redevelopment Agency as of July 1, 2011 (287,110) — To record receivable from General Fund as of July 1, 2011 — 287,110

To adjust state gas tax receivable as of July 1, 2011 — 264,380 Fund balances as restated $ 9,758,196 35,758,325

(1) Adjusted for reclassification of major funds.

Government-wide net assets were restated as follows:

GovernmentalActivities

Net assets as previously reported $ 121,444,257

To adjust accounts receivable as of July 1, 2011 264,380 Net assets as restated $ 121,708,637


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K. Recent Changes in Legislation Affecting California Redevelopment Agencies

On June 29, 2011, Assembly Bills 1x 26 (the “Dissolution Act”) and 1x 27 were enacted as part of the FY 2011-12 state budget package. The Dissolution Act required each California redevelopment agency to suspend nearly all activities except to implement existing contracts, meet already-incurred obligations, preserve its assets and prepare for impending dissolution. Assembly Bill 1x 27 provided a means for redevelopment agencies to continue to exist and operate by means of a Voluntary Alternative Redevelopment Program.

The League of California Cities and the California Redevelopment Association (CRA) filed a lawsuit on July 18, 2011 on behalf of cities, counties and redevelopment agencies petitioning the California Supreme Court to overturn the Dissolution Act and Assembly Bill 1x 27 on the grounds that these bills violate the California Constitution.

On December 29, 2011, the California Supreme Court upheld the Dissolution Act and struck down Assembly Bill 1x 27.

On June 27, 2012, as part of the FY 2012-13 state budget package, the Legislature passed and the Governor signed AB 1484, which made technical and substantive amendments to the Dissolution Act based on experience to-date at the state and local level in implementing the Dissolution Act.

Under the Dissolution Act, each California redevelopment agency (each a “Dissolved RDA”) was dissolved as of February 1, 2012, and the sponsoring community that formed the Dissolved RDA, together with other designated entities, have initiated the process under the Dissolution Act to unwind the affairs of the Dissolved RDA. A Successor Agency was created for each Dissolved RDA which is the sponsoring community of the Dissolved RDA unless it elected not to serve as the Successor Agency. On January 9, 2012, the City elected to serve as the Successor Agency of the Alhambra Redevelopment Agency.

The Dissolution Act also created oversight boards which monitor the activities of the successor agencies. The roles of the successor agencies and oversight boards is to administer the wind down of each Dissolved RDA which includes making payments due on enforceable obligations, disposing of the assets (other than housing assets) and remitting the unencumbered balances of the Dissolved RDAs to the County Auditor-Controller for distribution to the affected taxing entities.

The Dissolution Act allowed the sponsoring community that formed the Dissolved RDA to elect to assume the housing functions and take over the certain housing assets of the Dissolved RDA. If the sponsoring community does not elect to become the Successor Housing Agency and assume the Dissolved RDA’s housing functions, such housing functions and all related housing assets will be transferred to the local housing authority in the jurisdiction. AB 1484 modified and provided some clarifications on the treatment of housing assets under the Dissolution Act. The City of Alhambra elected on January 9, 2012 to serve as the Housing Successor Agency.

Prior to February 1, 2012, the final seven months of activity of the Dissolved RDA are reported in the governmental funds of the City. After the date of dissolution, the housing assets, obligations, and activities of the Dissolved RDA have been transferred and are reported in the Housing Asset special revenue fund in the financial statements of the City. All other assets, obligations, and activities of the Dissolved RDA have been transferred and are reported in a fiduciary fund (private-purpose trust fund) in the financial statements of the City.

The transfer of the assets and liabilities of the Dissolved RDA as of February 1, 2012 (except for certain assets of the former Low and Moderate Income Housing Fund, which were transferred to the Housing Asset Fund (effectively the same date as January 31, 2012) from the governmental funds of the City to


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the fiduciary fund was reported in the governmental funds as an extraordinary gain in the governmental fund financial statements. The receipt of these assets and liabilities as of February 1, 2012 was also reported in the fiduciary fund as an extraordinary loss.

Because of the different measurement focus of the governmental funds (current financial resources measurement focus) and the measurement focus of the fiduciary private-purpose trust fund (economic resources measurement focus), the extraordinary loss (gain) recognized in the governmental funds was not the same amount as the extraordinary gain (loss) that was recognized in the fiduciary fund financial statements.

The difference between the extraordinary loss recognized in the fund financial statements and the extraordinary gain recognized in the fiduciary fund financial statements is reconciled as follows:

Total extraordinary loss reported in governmental funds – increase to net assets of the Successor Agency Trust Fund $12,521,398

Capital assets recorded in the government-wide financial statements – increase to net assets of the Successor Agency Trust Fund 10,127,985

Accrued bond interest reported in the government-wide financial statements – decrease to net assets of the Successor Agency Trust Fund (444,334)

Deferred bond costs assets recorded in the government-wide financial statements – increase to net assets of the Successor Agency Trust Fund 1,042,502

Long-term debt reported in the government-wide financial Statements – decrease to net assets of the Successor Agency Trust Fund

(43,545,212)

Certain receivables recorded as deferred revenues in the government-wide financial Statements – increase to net assets of the Successor Agency Trust Fund 3,170,000

Net decrease to net assets of the Successor Agency Trust Fund as a result of initial transfers (equal to amount of extraordinary gain reported in the government-wide financial statements of the City) ($17,127,661)

The Dissolution Act and AB 1484 also establish roles for the County Auditor-Controller, the California Department of Finance (the “DOF”) and the California State Controller’s office in the dissolution process and the satisfaction of enforceable obligations of the Dissolved RDAs.

The County Auditor-Controller is charged with establishing a Redevelopment Property Tax Trust Fund (the “RPTTF”) for each Successor Agency and depositing into the RPTTF for each six-month period the amount of property taxes that would have been redevelopment property tax increment had the Dissolved RDA not been dissolved. The deposit in the RPTTF fund is to be used to pay to the Successor Agency the amounts due on the Successor Agency’s enforceable obligations for the upcoming six-month period.

The Successor Agency is required to prepare a recognized obligation payment schedule ( the “ROPS”) approved by the oversight board setting forth the amounts due for each enforceable obligation during each six month period. The ROPS is submitted to the DOF for approval. The County Auditor-Controller will make payments to the Successor Agency from the RPTTF fund based on the ROPS amount


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approved by the DOF. The ROPS is prepared in advance for the enforceable obligations due over the next six months. The Successor Agency received $4,125,726 from the County Auditor-Controller on June 1, 2012 for the ROPS for the period July 1, 2012 to December 31, 2012.

The process of making RPTTF deposits to be used to pay enforceable obligations of the Dissolved RDA will continue until all enforceable obligations have been paid in full and all non-housing assets of the Dissolved RDA have been liquidated.

The Low and moderate income housing fund of the former redevelopment agency transferred loans in the amount of $2,938,151, SERAF loans in the amount of $5,019,279 and real property in the amount of $1,242,814 to the City of Alhambra as the Housing Successor Agency on February 1, 2012 as authorized by Health and Safety Code Section 34176(a)(2).

The former redevelopment agency made principal and interest payments totaling $512,099 on advances from the City of Alhambra for the period January 1, 2011 to June 30, 2012. These payments may have to be paid back by the City if the California Department of Finance determines that the repayments on these advances were on loans not made within the first two years of the formation of the former redevelopment agency.

In March 2011, the City Council approved the transfer of real properties and lease assignments from the Redevelopment Agency to the City. These properties and lease assignments were subsequently returned to the Redevelopment Agency along with the net rental income earned on the leases. These properties and leases have been transferred to the Successor Agency as of February 1, 2012.

Advances from City of Alhambra

AB 1484 specifies the actions to be taken and the method of repayment for advances by the Successor Agency to the various funds of the City. Upon application and approval by the successor agency and approval by the oversight board, loan agreements (advances) entered into by former redevelopment agency and the city shall deemed to be enforceable obligations provided that the oversight board makes a finding that the advances were for legitimate redevelopment purposes. The accumulated interest on the remaining amount of advances will be recalculated from origination at the interest rate earned by funds deposited into the Local Agency investment Fund. The advances are to be repaid with a defined schedule over a reasonable term of years at an interest rate not to exceed the interest rate earned by the funds deposited into the Local Agency Investment Fund. The annual advances repayments are subject to certain limitations. Advance repayments shall not be prior to the 2013-2014 fiscal year, are subject to a formula distribution, and have a lower priority for repayment as described in AB 1484 (Health and Safety Code Section 34191.4(2)(A). The advances related to the borrowing for the SERAF payment have a priority over repayment of the other advances. 20% of the repayment of the other advances not related to the SERAF advances shall be deducted and transferred to the Low and Moderate Income Housing Fund (Housing Authority). Management of the City has not recorded an allowance for uncollectible advances as all the advances are expected to be repaid

The State Controller of the State of California has been directed to review the propriety of any transfers of assets between Dissolved RDA and other public bodies that occurred after January 1, 2011. If the public body that received such transfers is not contractually committed to a third party for the expenditure or encumbrance of those assets, the State Controller is required to order the available assets to be transferred to the public body designated as the successor agency.

Management believes, in consultation with legal counsel, that the obligations of the Dissolved RDA due to the City are valid enforceable obligations payable by the Successor Agency under the requirements of the Dissolution Act and AB 1484. The City’s position on this issue is not a position of settled law


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and there is considerable legal uncertainty regarding this issue. It is reasonably possible that a legal determination may be made at a later date by an appropriate judicial authority that would resolve this issue unfavorably to the City.

L. Successor Agency Disclosures

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

1. Cash and investments

Cash and investments as of June 30, 2012 consist of the following:

Cash on hand $ 2 Deposits with financial institutions 11,527,621 Investments with fiscal agent 6,390,449


50

a. Deposits

Custodial credit risk-deposits In the case of deposits, this is the risk that in the event a bank failure, the government’s deposits may not be returned to it. The California Government Code requires California banks and savings and loan associations to secure a city’s deposits by pledging government securities as collateral. The fair value of pledged securities must equal at least 110% of a city’s deposits. California law also allows financial institutions to secure city deposits by pledging first trust deed mortgage notes having a value of 150% of a city’s total deposits. At June 30, 2012, the carrying amount of the Successor Agency’s restricted and unrestricted deposits (including cash and certificates of deposit) was $11,527,621 while the corresponding bank balances were $11,969,005, which was entirely covered by federal depository insurance or collateralized in accordance with state law. The difference between the carrying amount of deposits and the corresponding bank balance is due to outstanding checks at year-end. b. Investments The Successor Agency follows the investment policy of the City. The investment policy as approved by the City Council, authorizes the City to invest in certain types of investments as authorized by the California Government Code.

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


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Authorized Investment Type

Maximum Maturity

Maximum Percentage Portfolio

Maximum Investment

In One Issuer

U.S. Treasury Securities 5 years None None U.S. Government Agency Securities 5 years 50% 30% Banker’s Acceptances 180 days 40% 5% Commercial paper 270 days 25% 5% Negotiable Certificates of Deposit 5 years 30% 5% Repurchase Agreements 30 days None 5% Medium-Term Notes 5 years 30% 5% Receivable-Backed Securities 5 years 20% 5% Money Market Mutual Funds N/A 20% 10% Local Agency Investment Funds (LAIF) N/A None None

Investments authorized under debt agreements

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

Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment the greater the sensitivity of its fair value to changes in market interest rates. In accordance with its policy, the Successor Agency manages its exposure to declines in fair values by limiting the weighted average maturity of its investment portfolio as a whole to 365 days. Investments held by trustee are not subject to the 365 day maturity limitation.

Investment Type Weighted Average

Maturity (in years) Held by Bond Trustee:

Money Market Funds 6,390,449 Overnight

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


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June 30, 2012

Rating as of Year End

Investment Type

Minimum

Legal Rating

AAA

AA+

AA-

Unrated

Held by bond trustee: Money Market Funds 6,390,449 A 6,390,449

Concentration of Credit Risk The investment policy of the Agency contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. There are no investments in any one issuer (other than U.S. Treasury securities, mutual funds, and external investment pools) that represent 5% or more of the total Successor Agency investments. Custodial Credit Risk – Investments For an investment, this is the risk that, in the event or the failure of the counterparty, the government will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. To protect against fraud, embezzlement, or losses caused by collapse of individual securities dealers, all securities owned by the Successor Agency (except for investments held by bond trustee) are held in safekeeping by the Successor Agency’s custodial bank or a third party bank trust department, acting as agent for the Successor Agency under the terms of a custody agreement. Investments of $6,390,449 were purchased and held by the bond trustee.

c. Restricted Cash and Investments

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

2. Notes Receivables

To enhance the redevelopment process, loans were made for the development of commercial properties. The nature of these notes is such that ultimate collectibility may be in question. The terms of most of the notes do not require repayment until certain conditions are met or may be forgiven after a number of years. The timing of these conditions is generally indeterminate (e.g., upon sale of the related property) or not scheduled for 10 to 20 years in the future. Accordingly, the total notes receivable balance at June 30, 2012 of $3,828,954 has been offset by a reserve for uncollectibility of $658,954 in the accompanying Statement of Fiduciary Net Position, leaving a net remaining balance of $3,170,000.


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June 30, 2012

3. Capital Assets

Capital assets were transferred from the former Redevelopment Agency to the Successor Agency as a result of dissolution of the Redevelopment Agency. The capital assets of the Successor at June 30, 2012 were as follows:

Balances at Balances atFebruary 1, 2012 Additions Deletions June 30, 2012

Capital assets, not being depreciated:Land $ 5,016,730 — — 5,016,730

Total capital assets, notbeing depreciated 5,016,730 — — 5,016,730


improvements 6,624,523 — — 6,624,523 Machinery and equipment 15,000 — — 15,000

Total capital assets,being depreciated 6,639,523 — — 6,639,523


improvements (1,994,565) (61,797) — (2,056,362) Machinery and equipment (15,000) — — (15,000)

Total accumulateddepreciation (2,009,565) (61,797) — (2,071,362)

Total capital assets, beingdepreciated, net 4,629,958 (61,797) — 4,568,161 Total 9,646,688 (61,797) — 9,584,891

4. Long-Term Liabilities

Long-term liabilities were transferred from the former Redevelopment Agency to the Successor Agency as a result of dissolution of the Redevelopment Agency. The long-term liabilities of the Successor at June 30, 2012 were as follows:

Balances, Balances, Due withinFebruary 1, 2012 Additions Retirements June 30, 2012 one year

Tax allocation refunding bonds $ 23,170,000 — (2,275,000) 20,895,000 2,390,000 Add deferred amount on refunding 710,602 — (35,178) 675,424 — Tax allocation bonds 16,805,000 — (1,010,000) 15,795,000 1,045,000 Add deferred amount on issuance 72,578 — (3,593) 68,985 — Less bond discount (6,928) — 342 (6,586) —

40,751,252 — (3,323,429) 37,427,823 3,435,000

Contractual obligations 2,793,960 (229,975) 2,563,985 256,373 Advances from City of Alhambra 1,818,659 — — 1,818,659 445,350

Total long-term liabilities $ 45,363,871 — (3,553,404) 41,810,467 4,136,723


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June 30, 2012

Tax Allocation Bonds

• In 2003, the Agency issued $38,070,000 term tax allocation refunding bonds, which mature in amounts from $1,300,000 to $3,270,000, plus interest at 3.0% to 5.0% through May 1, 2020. Bond proceeds were used to refund the remaining outstanding amounts of $18,200,000 on the $18,200,000 Tax Allocation Refunding Bonds, Series 1993, $3,035,000 on the $3,740,000 Tax Allocation and Refunding Bonds, Series 1993B, $14,065,000 on the $19,650,000 Series 1996 Tax Allocation Bonds and to satisfy reserve requirements. As of June 30, 2011 all refunded bonds have been redeemed.

Bonds maturing on or after May 1, 2014 are subject to optional redemption at the option of the Agency equal to principal, plus accrued interest, without premium. Bonds maturing on or after May 1, 2014 are also subject to mandatory redemption from and to the extent of tax revenues paid to the trustee for deposit pursuant to the Indenture, at a redemption price equal to principal, plus accrued interest, without premium. At June 30, 2012, $20,895,000 was outstanding.

In 2005, the Agency issued $15,445,000 Series A serial and term tax allocation bonds, which mature in amounts from $565,000 to $4,270,000, plus interest at 2.875% to 5.0% through May 1, 2021. Bond proceeds were used to finance redevelopment activities and to satisfy reserve requirements.

Bonds maturing on or after May 1, 2014 are also subject to mandatory redemption from and to the extent of tax revenues paid to the trustee for deposit pursuant to the Indenture, at a redemption price equal to principal, plus accrued interest, without premium. At June 30, 2012, $11,255,000 was outstanding.

In 2005, the Agency issued $7,215,000 Series B serial and term tax allocation bonds, which mature in amounts from $205,000 to $605,000, plus interest at 3.0% to 4.0% through May 1, 2021. Bond proceeds were used to finance redevelopment activities and to satisfy reserve requirements. The bonds are issued subordinate to the 2005 Series A $15,445,000 Senior Tax Allocation Bonds and the 2003 $38,070,000 Refunding Tax Allocation Bonds.

Bonds maturing on or after May 1, 2014 are subject to optional redemption at the option of the Agency equal to principal, plus accrued interest, without premium. Bonds maturing on or after May 1, 2014 are also subject to mandatory redemption from and to the extent of tax revenues paid to the trustee for deposit pursuant to the Indenture, at a redemption price equal to principal, plus accrued interest, without premium. At June 30, 2012, $4,540,000 was outstanding.

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

Principal Interest T otal

Y ear ending June 30:2013 $ 3,435,000 1 ,659,108 5 ,094 ,108 2014 3,560,000 1 ,524,693 5 ,084 ,693 2015 3,710,000 1 ,373,482 5 ,083 ,482 2016 3,885,000 1 ,201,482 5 ,086 ,482 2017 4,070,000 1 ,012,331 5 ,082 ,331 2018-2022 18,030,000 2 ,701,042 20,731,042

36 ,690,000 9 ,472,138 46,162,138 Add bond prem ium 744,409 — 744,409 Less bond d iscount (6 ,586) — (6 ,586)

Total $ 37 ,427,823 9 ,472,138


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Contractual Obligations

• The Agency entered into various disposition and development agreements (DDAs) or owner participation agreements (OPAs) with several developers. The agreements are structured such that the Agency pays for specified off-site improvements and other costs of preparing land for development in the City’s redevelopment project areas. Accordingly, the Successor Agency has recorded a liability in the amount of $2,563,985 at June 30, 2012 for the total estimated costs.

Annual debt service requirements to maturity for the contractual obligations are as follows:

Year ending June 30:2013 $ 256,373 2014 254,998 2015 241,136 2016 171,222 2017 180,430 2018-2022 624,692 2013-2027 835,134

Total $ 2,563,985

Advances

• The City of Alhambra advanced various amounts to the Agency for redevelopment purposes. The activity and description of such advances for the year ended June 30, 2012 are as follows:

Balance at Balance at Due withinFebruary 1, 2012 Additions Retirements June 30, 2012 One Year

1989 Advance from the City $ 1,392,300 — 1,392,300 445,350 1997 Advance from the City 124,398 — — 124,398 — 1992 Advance from the City 301,961 — — 301,961 —

$ 1,818,659 — — 1,818,659 445,350

• 1989 Advance from the City – In September 1989, the City entered into an agreement to advance proceeds received from the sale of certain off-street vehicular parking and other facilities and property located in the Industrial Project Area. The Agency’s payments to the City are used by the City to make their semiannual lease payments on the 2005 Alhambra Capital Improvements Corporation Certificates of Participation (the 2005 Certificates) which refunded the 1989 Alhambra Capital Improvements Corporation Certificates of Participation. The loan, included in the Community Improvement Debt Service Fund, requires semiannual payments of principal and interest to the extent that surplus tax increment revenues of the Agency are available, pursuant to a repayment contract between the Agency and the City. The Agency is only obligated to repay the City for its share of the annual debt service on the original 1989 Certificates. At June 30, 2012, $1,392,300 was outstanding.

• 1997 Advance from the City – In March 1997, the Agency entered into a reimbursement agreement with the City’s General Fund for the purchase of land for $291,688. The advance bears interest at 6% and is to be paid over a 20-year period. The Agency sold the land to a developer as part of the Ralph’s Shopping Center. At June 30, 2012, $124,398 was outstanding.


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• 1992 Advance from the City – In August 1992, the Agency issued a note to purchase the Police Station from the City for $969,869. A down payment of $500,000 was made with a balance of $469,869 due within 30 days of the City’s vacating the property. The loan bears no interest.

In February 1997, the Agency entered into a reimbursement agreement with the City’s General Fund for the purchase of additional property for $231,335. The reimbursement agreement was added to the August 1992 note and is payable over a 20-year period with interest at 9%. The unpaid portion of this note has been deferred in the City’s Capital Outlay Capital Projects Fund. At June 30, 2012, $301,961 was outstanding.

Annual debt service requirements to maturity for the advances from the City are as follows:

Principal Interest Total

Year ending June 30:2013 $ 445,350 38,191 483,541 2014 466,100 23,442 489,542 2015 480,850 7,934 488,784 Indeterminate 426,359 — 426,359

Total $ 1,818,659 69,567 1,888,226

5. Fremont Plaza Retail Project

In May 1996, the City and Agency entered into a Cooperation Agreement with respect to the Fremont Plaza Retail Project (the Project). The cost of the project was $9,453,946 with a carrying amount at June 30, 2012 of $7,248,001. 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 City and Successor share net lease revenues from the Project based on their respective pro rata share. The Project has entered into the following schedule by years of minimum future rentals on noncancelable operating leases:

Year ending June 30:2012 $ 153,040 2013 153,040 2014 153,040 2015 53,393

Total minimum future rentals $ 512,513

Minimum future rentals do not include rentals for common area maintenance activities. Common area maintenance rentals amounted to $100,102 for the year ended June 30, 2012.


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6. Contingencies

Low- and Moderate-Income Housing

The Health and Safety Code Section 33334.2 requires a redevelopment agency to use at least 20% of tax increment revenues generated by a redevelopment project area to increase and improve the supply of low- and moderate-income housing in the community. State Assembly Bill 2080, enacted in September 1989, clarifies that for pre-1977 project areas that defer making the housing set-aside due to existing obligations and/or programs, all deferrals beginning with 1985 – 86 shall be considered deficits to the Low- and Moderate-Income Housing Fund, which the agency is required to eliminate in subsequent years in accordance with a plan to be determined by the agency. For fiscal years 1986 through 2008, the City’s unfunded commitment for its low- and moderate-income housing program from the Redevelopment Agency aggregated $7,747,275. This commitment was transferred from the former Redevelopment Agency to the Successor Agency as a result of dissolution of the Redevelopment Agency. No payments were made February 1, 2012 through June 30, 2012. At June 30, 2012, the remaining unfunded commitment was $6,426,275.

See independent auditors' report 81

Supplementary Information

June 30, 2012

Miscellaneous and Safety Pension Plans Schedule of Funding Progress

The City’s Pension Plan includes separate valuations for Miscellaneous Members and Safety Members. The funded status of the Plan for each of these member groups for the actuarial valuations performed as of June 30, 2011 is as follows (valuations prior to 1994 and for 2012 are not available):

Miscellaneous Members(Dollars in thousands)

Entry age Unfundednormal Actuarial (overfunded) Annual UAAL as aaccrued value of liability covered percentage

Valuation date (June 30) liability assets (UAAL) Funded ratio payroll of payroll2011 $ 120,956 101,296 19,660 83.7% 15,834 124.2% 2010 113,012 95,787 17,225 84.8% 16,298 105.7% 2009 108,570 90,763 17,807 83.6% 16,968 104.9% 2008 96,103 85,908 10,195 89.4% 15,694 65.0% 2007 88,534 79,432 9,102 89.7% 14,733 61.8% 2006 82,478 72,409 10,069 87.8% 14,758 68.2% 2005 76,407 67,081 9,326 87.8% 13,996 66.6% 2004 71,110 63,872 7,238 89.8% 13,123 55.2% 2003 62,938 60,860 2,078 96.7% 13,391 15.5% 2002 52,354 60,295 (7,941) 115.2% 10,859 (73.1)%2001 48,688 64,758 (16,070) 133.0% 10,505 (153.0)%2000 44,827 63,485 (18,658) 141.6% 9,760 (191.2)%1999 39,313 56,015 (16,702) 142.5% 9,134 (182.9)%1998 37,771 50,678 (12,907) 134.2% 8,921 (144.7)%1997 35,363 43,236 (7,873) 122.3% 8,720 (90.3)%1996 35,248 38,027 (2,779) 107.9% 8,850 (31.4)%1995 33,825 34,151 (326) 101.0% 9,818 (3.3)%1994 32,235 32,459 (224) 100.7% 9,301 (2.4)%

Safety Members(Dollars in thousands)

Entry age Unfundednormal Actuarial (overfunded) Annual UAAL as aaccrued value of liability covered percentage

Valuation date (June 30) liability assets (UAAL) Funded ratio payroll of payroll2011 $ 196,921 151,025 45,896 76.7% 14,864 308.8% 2010 182,635 143,830 38,805 78.8% 13,860 280.0% 2009 179,955 138,388 41,567 76.9% 14,078 295.3% 2008 163,979 133,377 30,602 81.3% 13,544 225.9% 2007 146,117 124,329 21,788 85.1% 12,596 173.0% 2006 139,020 115,621 23,399 83.2% 12,370 189.2% 2005 131,924 107,908 24,016 81.8% 12,276 195.6% 2004 123,046 100,752 22,294 81.9% 11,995 185.9% 2003 115,456 97,693 17,763 84.6% 11,089 160.2% 2002 111,019 98,686 12,333 88.9% 10,512 117.3% 2001 101,619 107,330 (5,711) 105.6% 9,352 (61.1)%2000 96,263 106,235 (9,972) 110.4% 9,030 (110.4)%1999 81,890 94,112 (12,222) 114.9% 9,292 (131.5)%1998 75,997 84,169 (8,172) 110.8% 8,785 (93.0)%1997 68,480 72,021 (3,541) 105.2% 8,661 (40.9)%1996 64,380 63,469 911 98.6% 8,604 10.6% 1995 59,780 56,939 2,841 95.2% 9,223 30.8% 1994 56,664 53,300 3,364 94.1% 8,485 39.6%


CITY OF ALHAMBRA

Required Supplementary Information (Unaudited)

June 30, 2012

Health Subsidy Pension Plan Schedule of Funding Progress

The funded status of the Plan for the actuarial valuation performed as of June 30, 2010 is as follows (valuations prior to 2008 and after 2010 are not available):

(Dollars in thousands)

UnfundedActuarial (overfunded) Annual UAAL as a

Accrued value of liability covered percentageValuation date (June 30) liability assets (UAAL) Funded ratio payroll of payroll

2010 $ 12,909 — 12,909 0.0% 28,390 45.5% 2008 10,185 — 10,185 0.0% 34,291 29.7%

PERS Health Program and City Council Plan Other Post-Employment Benefit Plans Schedule of Funding Progress

The funded status of the Plans for the actuarial valuations performed as of June 30, 2010 is as follows (valuations prior to 2008 and after 2010 are not available):

PERS Health Program




2010 $ 10,820 — 10,820 0.0% 28,390 38.1% 2008 8,576 — 8,576 0.0% 34,291 25.0%

City Council Plan




2010 $ 1,961 — 1,961 0.0% 58 3,381.0% 2008 1,811 — 1,811 0.0% 56 3,233.9%


CITY OF ALHAMBRA

Combining and Individual Fund Statements and Schedules


CITY OF ALHAMBRA

Combining Balance Sheet


June 30, 2012

Total Total Total Totalspecial debt capital other

revenue service projects governmentalAssets funds funds funds funds

Cash and investments $ 10,298,544 — — 10,298,544 Restricted cash and investments — 647,000 — 647,000 Accounts receivable 1,535,804 13,857 7,552 1,557,213 Due from other funds 149,494 — 929,933 1,079,427 Due from Successor Agency — 1,392,300 301,961 1,694,261

Total assets $ 11,983,842 2,053,157 1,239,446 15,276,445


Liabilities:Accounts payable $ 346,164 — 7,552 353,716 Due to other funds 560,333 — 1,227,523 1,787,856 Deferred revenue 706,119 — 309,514 1,015,633

Total liabilities 1,612,616 — 1,544,589 3,157,205

Fund balances:Nonspendable:

Due from Successor Agency — 1,392,300 — 1,392,300 Restricted for:

Law enforcement 550,507 — — 550,507 Streets and transportion 7,846,613 — — 7,846,613 Air quality 464,083 — — 464,083 Police facility 2,108,170 — — 2,108,170 Debt service — 660,857 — 660,857

Unassigned (598,147) — (305,143) (903,290)

Total fund balances 10,371,226 2,053,157 (305,143) 12,119,240

Total liabilities and fundbalances $ 11,983,842 2,053,157 1,239,446 15,276,445


CITY OF ALHAMBRA

Combining Schedule of Revenues, Expendituresand Changes in Fund Balances



Total Total Total Totalspecial debt capital other

revenue service projects governmentalfunds funds — funds

Revenues:Taxes and special assessments $ 5,745,326 4,991,629 649,015 11,385,970 Intergovernmental 9,229,286 — 200,305 9,429,591 Investment earnings 18,122 42,649 753,383 814,154 Charges for services 154,354 — — 154,354 Other 189,034 22,683 3 211,720

Total revenues 15,336,122 5,056,961 1,602,706 21,995,789


Public safety 1,311,764 — — 1,311,764 Public works 2,906,179 — — 2,906,179 Housing, health, and community

development 1,943,270 — — 1,943,270 Culture and recreation 52,459 — — 52,459

Capital outlay 4,271,883 — 1,013,307 5,285,190 Debt service:

Principal retirement — 2,069,560 158,119 2,227,679 Interest and fiscal charges — 2,415,390 — 2,415,390


Excess (deficiency) of revenuesover expenditures 4,850,567 572,011 431,280 5,853,858

Other financing sources (uses):Transfers in 831,517 3,090,376 1,854,248 5,776,141 Transfers out (3,598,716) (1,548,779) (375,263) (5,522,758) Sale of capital assets 9,890 — — 9,890

Total other financing sources(uses) (2,757,309) 1,541,597 1,478,985 263,273

Extraordinary itemsGain(loss) on dissolution of the Alhambra

Redevelopment Agency (9,108,732) (10,036,412) 1,604,467 (17,540,677)

Net change in fund balances (7,015,474) (7,922,804) 3,514,732 (11,423,546)

Fund balances (deficit) at July 1, as restated 17,386,700 9,975,961 (3,819,875) 23,542,786 Fund balances (deficit) at June 30 $ 10,371,226 2,053,157 (305,143) 12,119,240


OTHER SPECIAL REVENUE FUNDS

Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than Capital Projects Funds and Expendable Trust Funds) that are legally restricted to expenditures for specified purposes. Funds included are:

Law Enforcement Fund – To account for funds provided by the United States Department of Justice and State of California for local law enforcement programs.

TDA Bikeway Fund – To account for revenues received from the State under the 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.

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.

Measure R 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.

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.

Lighting and Landscape Maintenance 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.

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 new police facility.

Asset Forfeiture Federal/State Funds – To account for City’s share of asset forfeiture monies received from state and federal sources.

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. Alhambra Redevelopment Agency Low- and Moderate-Income Housing Fund – To account for funds required by law to be set aside for low- and moderate-income housing.

THIS PAGE INTENTIONALLY LEFT BLANK

CITY OF ALHAMBRA


Other Special Revenue Funds

June 30, 2012

Law TDA State Proposition A Proposition C Assets enforcement bikeway gas tax transportation transportation

Cash and investments $ 196,342 18 1,509,434 844,206 2,572,632 Accounts receivable 82,584 11,458 249,808 2,250 — Due from other funds — — — — 149,494

Total assets $ 278,926 11,476 1,759,242 846,456 2,722,126

Liabilities andFund Balances (Deficits)

Liabilities:Accounts payable $ 9,256 — 74,537 91,039 15,999 Due to other funds — 11,459 — — — Deferred revenue 4,310 — — —

Total liabilities 13,566 11,459 74,537 91,039 15,999

Fund balances (deficits):Restricted for: Law enforcement 265,360 — — — — Streets and transportation — 17 1,684,705 755,417 2,706,127 Air quality — — — — — Police facility — — — — —

Unassigned — — — — —

Total fund balances (deficits) 265,360 17 1,684,705 755,417 2,706,127

Total liabilities and fund balances (deficits) $ 278,926 11,476 1,759,242 846,456 2,722,126


TotalLow- and other

Lighting and Police Transportation Moderate- speciallandscape facility Asset Capital Income revenue

Measure R Air quality maintenance assessment forfeiture Improvement Housing funds1,381,038 438,770 1,164,637 1,926,927 264,540 — — 10,298,544

79,367 25,841 213,005 196,647 20,607 654,237 — 1,535,804 — — — — — — — 149,494

1,460,405 464,611 1,377,642 2,123,574 285,147 654,237 — 11,983,842

— 528 137,100 15,404 — 2,301 — 346,164 — — — — — 548,874 — 560,333 — — 600 — — 701,209 — 706,119

— 528 137,700 15,404 — 1,252,384 — 1,612,616

— — — — 285,147 — — 550,507 1,460,405 1,239,942 — — — — 7,846,613

— 464,083 — — — — — 464,083 — — — 2,108,170 — — — 2,108,170 — — — — — (598,147) — (598,147)

1,460,405 464,083 1,239,942 2,108,170 285,147 (598,147) — 10,371,226

1,460,405 464,611 1,377,642 2,123,574 285,147 654,237 — 11,983,842


CITY OF ALHAMBRA

Combining Statement of Revenues, Expenditures,and Changes in Fund Balances (Deficits)

Other Special Revenue Funds


Law TDA State Proposition A – Proposition C –enforcement bikeway gas tax transportation transportation

Revenues:Taxes and special assessments $ — — — — — Intergovernmental 410,320 (16,716) 2,500,413 1,307,874 1,087,797 Investment earnings 220 17 2,416 1,680 3,853 Charges for services — — 5,261 149,093 — Other — — 2,912 167,095 —

Total revenues 410,540 (16,699) 2,511,002 1,625,742 1,091,650


Public safety 215,302 — 1,020,296 — — Public works — — 793,127 33,826 3,825 Housing, health, and community

development — — — 1,416,664 526,606 Culture and recreation — — — 52,459 —

Capital outlay 143,705 73,154 1,529,602 — 231,285

Total expenditures 359,007 73,154 3,343,025 1,502,949 761,716

Excess (deficiency) of revenuesover expenditures 51,533 (89,853) (832,023) 122,793 329,934

Other financing sources (uses):Transfers in — — 507,288 — 313,318 Transfers out — — (17,717) (92,296) (70,250) Sale of capital assets — — — — 9,890

Total other financing sources (uses) — — 489,571 (92,296) 252,958

Extraordinary items

Gain(loss) on dissolution of the Alhambra

Redevelopment Agency — — — — — Net change in fund balances 51,533 (89,853) (342,452) 30,497 582,892

Fund balances at July 1, as restated 213,827 89,870 2,027,157 724,920 2,123,235 Fund balances at June 30 $ 265,360 17 1,684,705 755,417 2,706,127


TotalLow- and other

Lighting and Police Transportation Moderate- speciallandscape facility Asset Capital Income revenue

Measure R Air quality maintenance assessment forfeiture Improvement Housing funds

— — 3,435,974 2,309,352 — — — 5,745,326 808,372 104,682 35,863 — 145,840 2,844,841 — 9,229,286

3,637 827 — 2,093 490 — 2,889 18,122 — — — — — — 154,354 — 699 18,328 — — — — 189,034

812,009 106,208 3,490,165 2,311,445 146,330 2,844,841 2,889 15,336,122

— — — 14,659 61,507 — — 1,311,764 — — 2,032,351 — — 43,050 — 2,906,179

— — — — — — — 1,943,270 — — — — — — — 52,459

671,943 5,114 100,772 163,945 — 747,826 604,537 4,271,883

671,943 5,114 2,133,123 178,604 61,507 790,876 604,537 10,485,555

140,066 101,094 1,357,042 2,132,841 84,823 2,053,965 (601,648) 4,850,567

— — — — — 10,911 831,517 — — (768,841) (2,247,553) — (325,191) (76,868) (3,598,716) — — — — — — — 9,890

— — (768,841) (2,247,553) — (314,280) (76,868) (2,757,309)

— — — — — — (9,108,732) (9,108,732) 140,066 101,094 588,201 (114,712) 84,823 1,739,685 (9,787,248) (7,015,474)

1,320,339 362,989 651,741 2,222,882 200,324 (2,337,832) 9,787,248 17,386,700 1,460,405 464,083 1,239,942 2,108,170 285,147 (598,147) — 10,371,226


CITY OF ALHAMBRA

and Changes in Fund Balance – Budget and Actual

Law Enforcement Special Revenue Fund




Revenues:Intergovernmental $ 31,000 62,068 410,320 348,252 Investment earnings 900 900 220 (680)

Total revenues 31,900 62,968 410,540 347,572


Public safety 143,705 143,705 215,302 (71,597) Capital Outlay 154,649 239,236 143,705 95,531

Total expenditures 298,354 382,941 359,007 23,934

Net change in fund balances (266,454) (319,973) 51,533 371,506

Fund balance at July 1 213,827 213,827 213,827 — Fund balance at June 30 $ (52,627) (106,146) 265,360 371,506

Schedule of Revenues, Expenditures,


CITY OF ALHAMBRA

Schedule of Revenues, Expenditures,and Changes in Fund Balance – Budget and Actual

TDA Bikeway Special Revenue Fund




Revenues:Intergovernmental $ — — (16,716) (16,716) Investment earnings — — 17 17

Total revenues — — (16,699) (16,699)

Expenditures:Capital outlay 96,760 96,760 73,154 23,606

Net change in fund balances (96,760) (96,760) (89,853) 6,907

Fund balance at July 1 89,870 89,870 89,870 — Fund balance at June 30 $ (6,890) (6,890) 17 6,907


CITY OF ALHAMBRA


State Gas Tax Special Revenue Fund




Revenues:Intergovernmental $ 2,409,535 2,409,535 2,500,413 90,878 Investment earnings 5,000 5,000 2,416 (2,584) Charges for services 500 500 5,261 4,761 Other — — 2,912 2,912

Total revenues 2,415,035 2,415,035 2,511,002 95,967


Public safety 1,096,844 1,087,042 1,020,296 66,746 Public works 911,813 911,813 793,127 118,686

Capital outlay 2,306,701 2,351,503 1,529,602 821,901


Excess (deficiency) of revenues over expenditures (1,900,323) (1,935,323) (832,023) 1,103,300

Other financing sources (uses):Transfers in 441,287 441,287 507,288 66,001 Transfers out (17,717) (17,717) (17,717) —

Total other financing sources (uses) 423,570 423,570 489,571 66,001

Net change in fund balances (1,476,753) (1,511,753) (342,452) 1,169,301

Fund balance at July 1, as restated 2,027,157 2,027,157 2,027,157 — Fund balance at June 30 $ 550,404 515,404 1,684,705 1,169,301

Schedule of Revenues, Expenditures


CITY OF ALHAMBRA

Changes in Fund Balance – Budget and Actual

Proposition A – Transportation Special Revenue Fund




Revenues:Intergovernmental $ 1,200,000 1,200,000 1,307,874 107,874 Investment earnings 3,000 3,000 1,680 (1,320) Charges for services 175,000 175,000 149,093 (25,907) Other 120,000 120,000 167,095 47,095

Total revenues 1,498,000 1,498,000 1,625,742 127,742


Public works 16,362 16,362 33,826 (17,464) Housing, health, and community development 1,580,958 1,580,958 1,416,664 164,294 Culture and recreation 68,963 68,963 52,459 16,504

Capital outlay 20,000 20,000 — 20,000

Total expenditures 1,686,283 1,686,283 1,502,949 183,334

Excess (deficiency) of revenues overexpenditures (188,283) (188,283) 122,793 311,076

Other financing uses:Transfers out (92,296) (92,296) (92,296) —


Fund balance at July 1 724,920 724,920 724,920 — Fund balance at June 30 $ 444,341 444,341 755,417 311,076

Schedule of Revenues, Expenditures and


CITY OF ALHAMBRA


Proposition C – Transportation Special Revenue Fund




Revenues:Intergovernmental $ 1,000,000 1,000,000 1,087,797 87,797 Investment earnings 11,000 11,000 3,853 (7,147)

Total revenues 1,011,000 1,011,000 1,091,650 80,650


Public works $ 3,654 3,654 3,825 (171) Housing, health, and community development 647,373 667,368 526,606 140,762

Capital outlay 33,636 264,081 231,285 32,796

684,663 935,103 761,716 173,387

Excess (deficiency) of revenues overexpenditures 326,337 75,897 329,934 254,037

Other financing sources (uses):Transfers in — — 313,318 313,318 Transfers out (1,008,046) (1,008,046) (70,250) 937,796 Sale of capital assets — — 9,890 9,890

Total other financing sources (uses) (1,008,046) (1,008,046) 252,958 1,261,004 Net change in fund balances (681,709) (932,149) 582,892 1,515,041

Fund balance at July 1 2,123,235 2,123,235 2,123,235 — Fund balance at June 30 $ 1,441,526 1,191,086 2,706,127 1,515,041


Total expenditures


CITY OF ALHAMBRA


Measure R Special Revenue Fund




Revenues:Intergovernmental $ 750,000 750,000 808,372 58,372 Investment earnings 3,000 3,000 3,637 637

Total revenues 753,000 753,000 812,009 59,009

Expenditures:Capital outlay 2,000,473 2,000,473 671,943 1,328,530

Other financing uses:Transfers out — (230,000) — 230,000

Net change in fund balances (1,247,473) (1,477,473) 140,066 1,617,539

Fund balance at July 1 1,320,339 1,320,339 1,320,339 — Fund balance at June 30 $ 72,866 (157,134) 1,460,405 1,617,539



CITY OF ALHAMBRA


Air Quality Special Revenue Fund




Revenues:Intergovernmental $ 100,000 100,000 104,682 4,682 Investment earnings 1,500 1,500 827 (673) Other — — 699 699

Total revenues 101,500 101,500 106,208 4,708


Housing, health, and community development 30,286 30,286 — 30,286 Capital outlay 275,000 275,000 5,114 269,886






CITY OF ALHAMBRA

Changes in Fund Deficit – Budget and Actual

Lighting and Landscape Maintenance Special Revenue Fund




Revenues:Taxes and assessments $ 3,173,000 3,173,000 3,435,974 262,974 Intergovernmental 36,310 36,310 35,863 (447) Other 22,800 22,800 18,328 (4,472)

Total revenues 3,232,110 3,232,110 3,490,165 258,055


Public works 2,383,934 2,383,934 2,032,351 351,583 Capital outlay 100,898 100,898 100,772 126

Total expenditures 2,484,832 2,484,832 2,133,123 351,709

Excess of revenues over747,278 747,278 1,357,042 609,764

Other financing uses:Transfers out (769,277) (769,277) (768,841) 436


Fund balance at July 1 651,741 651,741 651,741 — Fund balance at June 30 $ 629,742 629,742 1,239,942 610,200


expenditures


CITY OF ALHAMBRA


Police Facility Assessment Special Revenue Fund




Revenues:Taxes and assessments $ 2,250,000 2,250,000 2,309,352 59,352 Investment earnings 9,000 9,000 2,093 (6,907)

Total revenues 2,259,000 2,259,000 2,311,445 52,445


Public safety 8,356 8,356 14,659 (6,303) Capital outlay 100,383 239,176 163,945 75,231


Excess of revenues over2,150,261 2,011,468 2,132,841 121,373

Other financing uses:Transfers out (2,247,553) (2,247,553) (2,247,553) —

Net change in fund balances (97,292) (236,085) (114,712) 121,373

Fund balance at July 1 2,222,882 2,222,882 2,222,882 — Fund balance at June 30 $ 2,125,590 1,986,797 2,108,170 121,373


expenditures



Asset Forfeiture Special Revenue Fund




Revenues:Intergovernmental $ 25,000 25,000 145,840 120,840 Investment Earnings 750 750 490 (260)

Total revenues 25,750 25,750 146,330 120,580


Public safety 31,250 62,931 61,507 1,424




CITY OF ALHAMBRA


CITY OF ALHAMBRA





Revenues:Intergovernmental $ 3,097,948 3,097,948 2,844,841 (253,107)


Public works 77,817 77,817 43,050 34,767 Capital outlay 5,866,829 5,866,829 747,826 5,119,003

Total expenditures 5,944,646 5,944,646 790,876 5,153,770

Excess of revenues over(2,846,698) (2,846,698) 2,053,965 4,900,663

Other financing sources (uses):Transfers in 1,178,106 1,178,106 10,911 (1,167,195) Transfers out — — (325,191) (325,191)

Total other financing sources (uses) 1,178,106 1,178,106 (314,280) (1,492,386)

Net change in fund balances (1,668,592) (1,668,592) 1,739,685 3,408,277

Fund deficit at July 1 (2,337,832) (2,337,832) (2,337,832) — Fund deficit at June 30 $ (4,006,424) (4,006,424) (598,147) 3,408,277


expenditures

Transportation Capital Improvement Special Revenue Fund


CITY OF ALHAMBRA


Low- and Moderate-Income Housing Special Revenue Fund

Year ended June 30, 2012 (Seven Months Ending January 31, 2012)



Revenues:Use of Money and Property 17,500 17,500 2,889 (14,611)


Excess (deficiency) of revenues over expenditures (927,141) (927,141) (601,648) 325,493

Other financing uses:Transfers out (123,096) (123,096) (76,868) 46,228

Extraordinary ItemsLoss on dissolution of the Alhambra

Redevelopement Agency — — (9,108,732) (9,108,732)

Net change in fund balances (1,050,237) (1,050,237) (9,787,248) (8,737,011)

Fund balance at July 1 9,787,248 9,787,248 9,787,248 — Fund balance at June 30 $ 8,737,011 8,737,011 — (8,737,011)

Schedule of Revenues, Expenditures


OTHER DEBT SERVICE FUNDS

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:

Community Improvement Fund – To accumulate monies for the payment of the $9,815,000 Alhambra Capital Improvement Corporation Certificates of Participation, Series 1989, which are due with varying principal and interest amounts, until maturity in 2014. Financing for the certificates is provided by lease payments from the City to the Corporation.

Lighting and Sidewalk Construction Fund – To accumulate monies for the payment of the 1994 $8,300,000 Public Works Maintenance and Improvement Bonds which are due with varying principal and interest amounts until maturity in 2018. Financing is provided by special assessments and contributions by the City as necessary.

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 2023. Financing is provided by special assessments.

Alhambra Redevelopment Agency Tax Allocation Bonds Fund – To accumulate monies for the payment of the Alhambra Redevelopment Agency’s tax allocation and refunding bonds and notes, which are due with varying principal and interest amounts until maturity in 2023. Financing is provided by property tax increment monies generated within the Project Areas.

CITY OF ALHAMBRA


Other Debt Service Funds

June 30, 2012

Redevelopment TotalAgency other

Lighting and Tax debt Community sidewalk Police Allocation service

Assets improvement construction facility Bonds funds

Restricted cash and investments $ — 647,000 — — 647,000 Accounts receivable — 13,857 — — 13,857 Due from Successor Agency 1,392,300 — — — 1,392,300

Total assets $ 1,392,300 660,857 — — 2,053,157


Liabilities $ — — — — —

Fund balances:

Nonspendable:Due from Successor Agency 1,392,300 — — — 1,392,300

Restricted for:Debt service — 660,857 — — 660,857

Total fund balances 1,392,300 660,857 — — 2,053,157 Total liabilities and fund balances $ 1,392,300 660,857 — — 2,053,157


CITY OF ALHAMBRA

Combining Statement of Revenues, Expenditures andChanges in Fund Balances

Other Debt Service Funds


Redevelopment TotalAgency other

Lighting and Tax debtCommunity sidewalk Police Allocation service

improvement construction facility Bonds funds

Revenues:

Taxes and special assessments — — — 4,991,629 4,991,629 Investment earnings $ — 42,648 — 1 42,649 Other 22,683 — — — 22,683

Total revenues 22,683 42,648 — 4,991,630 5,056,961

Expenditures:Debt service:

Principal retirement 709,560 400,000 960,000 — 2,069,560 Interest and fiscal charges 85,735 231,525 1,199,475 898,655 2,415,390

Total expenditures 795,295 631,525 2,159,475 898,655 4,484,950

Excess (deficiency) of revenues overexpenditures (772,612) (588,877) (2,159,475) 4,092,975 572,011

Other financing sources (uses):Transfers in 341,912 588,989 2,159,475 — 3,090,376 Transfers out — — — (1,548,779) (1,548,779)

Total other financing sources (uses) 341,912 588,989 2,159,475 (1,548,779) 1,541,597 Extraordinary Items

Loss on dissolution of the AlhambraRedevelopement Agency — — — (10,036,412) (10,036,412)

Net change in fund balances (430,700) 112 — (7,492,216) (7,922,804)

Fund balances at July 1 1,823,000 660,745 — 7,492,216 9,975,961 Fund balances at June 30 $ 1,392,300 660,857 — — 2,053,157


Schedule of Revenues, Expenditures and Changesin Fund Balance – Budget and Actual

Community Improvement Debt Service Fund




Revenues:Other $ — — 22,683 22,683


Principal retirement 709,560 709,560 709,560 — Interest and fiscal charges 85,735 85,735 85,735 —

Total expenditures 795,295 795,295 795,295 —

Deficiency of revenues overexpenditures (795,295) (795,295) (772,612) 22,683

Other financing sources:Transfers in 795,295 795,295 341,912 (453,383)

Net change in fund balances — — (430,700) (430,700)

Fund balance at July 1 1,823,000 1,823,000 1,823,000 — Fund balance at June 30 $ 1,823,000 1,823,000 1,392,300 (430,700)

CITY OF ALHAMBRA


CITY OF ALHAMBRA

Schedule of Revenues, Expenditures, and Changesin Fund Balance – Budget and Actual

Lighting and Sidewalk Construction Debt Service Fund




Revenues:Investment earnings $ 42,100 42,100 42,648 548


Principal retirement 400,000 400,000 400,000 — Interest and fiscal charges 231,525 231,525 231,525 —

Total expenditures 631,525 631,525 631,525 —

Deficiency of revenues overexpenditures (589,425) (589,425) (588,877) 548

Other financing sources:Transfers in 589,425 589,425 588,989 (436)

Net change in fund balances — — 112 112

Fund balance at July 1 660,745 660,745 660,745 — Fund balance at June 30 $ 660,745 660,745 660,857 112


CITY OF ALHAMBRA


Police Facility Debt Service Fund




Revenues:Investment earnings $ — — — —


Principal retirement 960,000 960,000 960,000 — Interest and fiscal charges 1,199,475 1,199,475 1,199,475 —

Total expenditures 2,159,475 2,159,475 2,159,475 —

Deficiency of revenues overexpenditures (2,159,475) (2,159,475) (2,159,475) —

Other financing sources:Transfers in 2,159,475 2,159,475 2,159,475 —

Net change in fund balances — — — —

Fund balance at July 1 — — — — Fund balance at June 30 $ — — — —


CITY OF ALHAMBRA


Year ended June 30, 2012 (Seven Months Ending January 31, 2012)



Revenues:

Taxes and assessments 4,790,333 4,790,333 4,991,629 201,296 Investment earnings $ — — 1 1

4,790,333 4,790,333 4,991,630 201,297


Principal retirement 3,285,000 3,285,000 — 3,285,000 Interest and fiscal charges 1,797,309 1,797,309 898,655 898,654


Excess (deficiency) of revenues overexpenditures (291,976) (291,976) 4,092,975 4,384,951

Other financing uses:Transfers out (3,926,974) (3,926,974) (1,548,779) 2,378,195

Extraordinary items:Loss on dissolution of the Alhambra

Redevelopment Agency — — (10,036,412) (10,036,412)

Net change in fund balances (4,218,950) (4,218,950) (7,492,216) (3,273,266)

Fund balance at July 1 7,492,216 7,492,216 7,492,216 — Fund balance at June 30 $ 3,273,266 3,273,266 — (3,273,266)

Alhambra Redevelopment Agency Tax Allocation Bond Debt Service Fund


OTHER 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.

Alhambra Redevelopment Agency Central Project Fund – To account for the costs associated with the financing and construction of the capital improvements within the Central Business District Project Area. Financing for the project is provided by property tax increment funds.

Alhambra Redevelopment Agency Industrial Project Fund – To account for the costs associated with the financing and construction of the capital improvements within the Industrial Project Area. Financing for the project is provided by property tax increment funds.

CITY OF ALHAMBRA


Other Capital Projects Funds

June 30, 2012

Alhambra Alhambraredevelopment redevelopment Total

agency agency otherCapital central industrial capital

Assets outlay project project projects

Accounts receivable $ 7,552 — — 7,552 Due from other funds 929,933 — — 929,933 Due from Successor Agency 301,961 — — 301,961

Total assets $ 1,239,446 — — 1,239,446


Liabilities:Accounts payable $ 7,552 — — 7,552 Due to other funds 1,227,523 — — 1,227,523 Deferred revenue 309,514 — — 309,514

Total liabilities 1,544,589 — — 1,544,589

Fund balances:Unassigned (305,143) — — (305,143)

Total fund balances (305,143) — — (305,143) Total liabilities and fund balances $ 1,239,446 — — 1,239,446


CITY OF ALHAMBRA

Combining Statement of Revenues, Expenditures, andChanges in Fund Balances

Other Capital Projects Funds


Alhambra Alhambraredevelopment redevelopment Total

agency agency otherCapital central industrial capitaloutlay project project projects

Revenues:Taxes and assessments $ — 512,199 136,816 649,015 Intergovernmental 200,305 — — 200,305 Investment earnings 3,725 485 749,173 753,383 Other 3 — — 3

Total revenues 204,033 512,684 885,989 1,602,706

Expenditures:Capital outlay 159,169 18,949 835,189 1,013,307 Debt service:

Principal retirement — — 158,119 158,119

Total expenditures 159,169 18,949 993,308 1,171,426

Excess (deficiency) of revenues over expenditures 44,864 493,735 (107,319) 431,280

Other financing sources (uses):Transfers in 97,284 — 1,756,964 1,854,248 Transfers out — (115,796) (259,467) (375,263)

Total other financing sources (uses) 97,284 (115,796) 1,497,497 1,478,985

Extraordinary itemsGain (loss) on the dissolution of the Alhambra

Redevelopment Agency — (832,410) 2,436,877 1,604,467

Net change in fund balances 142,148 (454,471) 3,827,055 3,514,732

Fund balances (deficit) at July 1, as restated (447,291) 454,471 (3,827,055) (3,819,875) Fund balances (deficit) at June 30 $ (305,143) — — (305,143)


CITY OF ALHAMBRA

Capital Outlay Capital Projects Fund




Revenues:Intergovernmental $ — — 200,305 200,305 Investment earnings 65,172 65,172 3,725 (61,447) Other — — 3 3

Total revenues 65,172 65,172 204,033 138,861

Expenditures:Capital outlay 222,628 222,628 159,169 63,459 Debt service:

Principal retirement 75,000 75,000 — 75,000 Interest and fiscal charges 21,370 21,370 — 21,370

Total expenditures 318,998 318,998 159,169 159,829 Excess (deficiency) of revenues over expenditures (253,826) (253,826) 44,864 298,690

Other financing sources:Transfers in 141,654 141,654 97,284 (44,370)


Fund deficit at July 1, as restated (447,291) (447,291) (447,291) — Fund deficit at June 30 $ (559,463) (559,463) (305,143) 254,320

Schedule of Revenues, Expenditures, andChanges in Fund Balance – Budget and Actual


CITY OF ALHAMBRA

Year ended June 30, 2012 (Seven Months Ending Janauary 31, 2012)



Revenues:Taxes and assessments $ 969,200 969,200 512,199 (457,001) Investment earnings 2,000 2,000 485 (1,515)

Total revenues 971,200 971,200 512,684 (458,516)



Excess of revenues over expenditures 949,200 949,200 493,735 (455,465)

Other financing uses:Transfers out (313,700) (313,700) (115,796) 197,904

Extraordinary itemsLoss on the dissolution of the Alhambra

Redevelopment Agency — — (832,410) (832,410)

Net change in fund balances 635,500 635,500 (454,471) (1,089,971)

Fund balance at July 1 454,471 454,471 454,471 — Fund balance at June 30 $ 1,089,971 1,089,971 — (1,089,971)

Alhambra Redevelopment Agency Central Projects Fund



CITY OF ALHAMBRA

Year ended June 30, 2012 (Seven Months Ending Janauary 31, 2012)



Revenues:Taxes and assessments $ 450,000 450,000 136,816 (313,184) Investment earnings 190,312 190,312 749,173 558,861 Other 100 100 — (100)

Total revenues 640,412 640,412 885,989 245,577

Expenditures:Capital outlay —

Administrative Consulting 925,698 925,698 568,660 357,038 Redevelopment Projects 1,749,357 1,749,357 266,529 1,482,828

Debt servicePrinicipal Retirement 17,794 17,794 158,119 (140,325) Interest and fiscal charges 7,201 7,201 — 7,201


Deficiency of revenues over expenditures (2,059,638) (2,059,638) (107,319) 1,952,319

Other financing sources (uses):Transfers in 2,565,377 2,796,802 1,756,964 (1,039,838) Transfers out (282,150) (282,150) (259,467) 22,683

Total other financing sources(uses) 2,283,227 2,514,652 1,497,497 (1,017,155)

Extraordinary itemsGain on the dissolution of the Alhambra

Redevelopment Agency — — 2,436,877 2,436,877

Net change in fund balances 223,589 455,014 3,827,055 3,372,041

Fund deficit at July 1, as restated (3,827,055) (3,827,055) (3,827,055) — Fund deficit at June 30 $ (3,603,466) (3,372,041) — 3,372,041


Alhambra Redevelopment Agency Industrial Projects Fund


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.

CITY OF ALHAMBRA

Totalinternal

Compensated serviceAssets Equipment Self-insurance absences funds

Current assets:Cash and investments $ 1,241,043 3,759,488 3,076,747 8,077,278 Restricted cash and investments — 12,349 — 12,349 Accounts receivable 2 — 2

Total current assets 1,241,045 3,771,837 3,076,747 8,089,629

Noncurrent assets:Restricted cash and investments — 2,423 — 2,423

Capital assets:Land — 237,950 — 237,950 Machinery and equipment 6,587,619 — — 6,587,619 Less accumulated depreciation (5,980,928) — — (5,980,928)

Total capital assets, net of accumulated depreciation 606,691 237,950 — 844,641

Total assets 1,847,736 4,012,210 3,076,747 8,936,693

Liabilities and Net Assets (Deficits)

Current liabilities:Accounts payable 164,456 151,250 — 315,706 Due to other funds — 50,719 50,719 Compensated absences 4,901 3,953 280,352 289,206 Deposits — 12,349 — 12,349 Current portion:

Self-insurance claims payable — 1,646,462 — 1,646,462

Total current liabilities 169,357 1,864,733 280,352 2,314,442

Long-term liabilities (net of current portion):Compensated absences 47,567 38,375 2,722,644 2,808,586 Pension liability 21,647 — — 21,647 OPEB liability 26,713 — — 26,713 Self-insurance claims payable — 9,511,066 — 9,511,066

Total long-term obligations 95,927 9,549,441 2,722,644 12,368,012

Total liabilities 265,284 11,414,174 3,002,996 14,682,454

Net assets (deficits):Invested in capital assets 606,691 237,950 — 844,641 Unrestricted 975,761 (7,639,914) 73,751 (6,590,402)

Total net assets (deficits) $ 1,582,452 (7,401,964) 73,751 (5,745,761)

Combining Statement of Net Assets (Deficits)

June 30, 2012

Internal Service Funds


CITY OF ALHAMBRA

Combining Statement of Revenues, Expenses, and Changes in Net Assets (Deficits)



Totalinternal

Compensated serviceEquipment Self-insurance absences funds

Operating revenues:Charges for services $ 1,765,481 — — 1,765,481 Self-insurance/compensated

absences contributions — 10,686,181 266,673 10,952,854

Total operating revenues 1,765,481 10,686,181 266,673 12,718,335

Operating expenses:Claims expense – liability — 4,498,371 — 4,498,371 Claims expense – workers’ compensation — 3,457,976 — 3,457,976 Claims expense – health insurance — 4,195,474 — 4,195,474 Compensated absences — — 331,406 331,406 Vehicle expense 1,411,120 — — 1,411,120 Depreciation 173,295 — — 173,295

Total operating expenses 1,584,415 12,151,821 331,406 14,067,642

Operating income (loss) 181,066 (1,465,640) (64,733) (1,349,307)

Nonoperating revenues (expenses):Interest income 3,136 18,712 4,697 26,545 Other income — 50,000 — 50,000

Total nonoperating revenues (expenses) 3,136 68,712 4,697 76,545

Income (loss) before transfers 184,202 (1,396,928) (60,036) (1,272,762)

Transfers in 49,013 2,030,354 — 2,079,367 Transfers out (88,524) (2,180,826) — (2,269,350)

Change in net assets 144,691 (1,547,400) (60,036) (1,462,745)

Net assets (deficits) at July 1 1,437,761 (5,854,564) 133,787 (4,283,016) Net assets (deficits) at June 30 $ 1,582,452 (7,401,964) 73,751 (5,745,761)


CITY OF ALHAMBRA

Combining Statement of Cash Flows



Totalinternal


Cash flows from operating activities:Cash received from customers $ 1,771,991 10,741,760 266,673 12,780,424 Cash paid for insurance premiums and self-insurance claims — (10,987,099) — (10,987,099) Cash paid for compensated absences — — (361,470) (361,470) Cash paid to suppliers for goods and services (1,375,028) — — (1,375,028) Cash paid to employees for services — (233,065) — (233,065) Cash operating cash received — 50,000 — 50,000

Net cash provided by (used in) operating activities 396,963 (428,404) (94,797) (126,238)

Cash flows from noncapital financing activities:Cash received from loans made to other funds — 50,719 6,760 57,479 Transfers from other funds 49,013 2,030,354 — 2,079,367 Transfers to other funds (88,524) (2,180,826) — (2,269,350)

Net cash provided by (used in) noncapital financing activities (39,511) (99,753) 6,760 (132,504)

Cash flows from capital and related financing activities:Acquisitions and construction of capital assets (271,454) — — (271,454)

Net cash used in capital and related financingactivities (271,454) — — (271,454)

Cash flows from investing activities: Interest received 3,136 18,712 4,697 26,545

Net increase (decrease) in cash and cash equivalents 89,134 (509,445) (83,340) (503,651)

Cash and cash equivalents at July 1 1,151,909 4,283,705 3,160,087 8,595,701 Cash and cash equivalents at June 30 $ 1,241,043 3,774,260 3,076,747 8,092,050

Cash and investments $ 1,241,043 3,759,488 3,076,747 8,077,278 Restricted investments — 14,772 — 14,772

Total cash and cash equivalents $ 1,241,043 3,774,260 3,076,747 8,092,050

Noncash investing, capital, and financing activities:(567) (2,935) (2,893) (6,395) Increase (decrease) in fair value of investments


CITY OF ALHAMBRA

Combining Statement of Cash Flows



Totalinternal


Reconciliation of operating loss to net cash provided by(used in) operating activities:

Operating income (loss) $ 181,066 (1,465,640) (64,733) (1,349,307)

Adjustments to reconcile operating loss tonet cash provided by (used in) operating activities:

Depreciation 173,295 — — 173,295 (Increase) decrease in accounts receivable 6,510 55,579 — 62,089 (Increase) decrease in deferred charges — 1,990 — 1,990 Increase (decrease) in accounts payable 17,903 (170,111) — (152,208) Increase (decrease) in self-insurance claims liability — 1,096,504 — 1,096,504 Increase (decrease) in compensated absences liability (893) 1,306 (30,064) (29,651) Increase (decrease) in pension liability 6,489 — — 6,489 Increase (decrease) in OPEB liability 12,593 — — 12,593 Increase (decrease) in deposits — 1,968 — 1,968 Other operating cash received (paid) — 50,000 — 50,000

Total adjustments 215,897 1,037,236 (30,064) 1,223,069 Net cash provided by (used in) operating activities $ 396,963 (428,404) (94,797) (126,238)


Statistical Section

STATISTICAL SECTION

This part of the City of Alhambra’s comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City’s overall financial health.

Contents Page

Financial Trends 117

These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time.

Revenue Capacity 122

These schedules contain information to help the reader assess the City’s ability to generate its property tax.

Debt Capacity 126

These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and its ability to issue additional debt in the future.

Demographic and Economic Information 132

These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place.

Operating Information 134

These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it performs.

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Invested in capital assets, net of related debt $ 88,043,651 93,166,104 94,044,973 93,243,203 104,480,964 110,472,851 111,857,095 113,333,412 117,571,980 125,254,685 9,000,502 9,419,834 10,005,480 7,504,340 24,764,479 1,832,264 8,499,470 7,872,152 29,145,405 12,815,183

Unrestricted (deficit) (23,881,172) (21,875,356) (10,631,174) (1,672,020) (23,794,816) (5,958,452) (14,557,195) (10,548,144) (25,273,128) 4,297,460 $ 73,162,981 80,710,582 93,419,279 99,075,523 105,450,627 106,346,663 105,799,370 110,657,420 121,444,257 142,367,328

Invested in capital assets, net of related debt $ 17,927,661 19,927,328 23,071,351 24,596,399 34,865,896 35,115,844 33,462,124 34,942,848 35,565,392 35,702,569 971,100 947,387 874,144 2,094,611 15,560,967 9,434,618 1,830,685 1,160,950 1,160,870 1,160,870

Unrestricted (deficit) 13,776,649 12,260,606 12,537,788 13,102,241 (6,259,285) 2,496,740 14,183,095 16,768,604 18,676,679 23,703,279 $ 32,675,410 33,135,321 36,483,283 39,793,251 44,167,578 47,047,202 49,475,904 52,872,402 55,402,941 60,566,718

Invested in capital assets, net of related debt $ 105,971,312 113,093,432 117,116,324 117,839,602 139,346,860 145,588,695 145,319,219 148,276,260 153,137,372 160,957,254 9,971,602 10,367,221 10,879,624 9,598,951 40,325,446 11,266,882 10,330,155 9,033,102 30,306,275 13,976,053

Unrestricted (deficit) (10,104,523) (9,614,750) 1,906,614 11,430,221 (30,054,101) (3,461,712) (374,100) 6,220,460 (6,596,449) 28,000,739 $ 105,838,391 113,845,903 129,902,562 138,868,774 149,618,205 153,393,865 155,275,274 163,529,822 176,847,198 202,934,046

Source: City of Alhambra Finance Department

CITY OF ALHAMBRANet Assets by Component

Last Ten Fiscal Years(accrual basis of accounting)

Primary government

Restricted

Total primary government net assets

Fiscal Year

Restricted

Total government activities net assets

Total business-type activities net assets

Businesss-type activities

Restricted

Governmental activities

117

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

$ 1,824,939 1,628,249 1,649,716 2,257,228 2,496,326 2,101,814 2,599,399 2,154,973 2,493,419 1,441,044 27,317,996 29,253,528 32,733,984 35,252,648 36,661,871 40,247,664 39,274,021 40,075,442 42,807,574 43,467,450

Public works 5,781,668 6,911,382 7,192,074 7,239,358 7,875,341 7,802,271 7,458,819 8,078,818 8,445,460 8,106,881 Housing, health, and community development 14,215,366 7,491,363 7,588,839 9,839,771 9,383,035 11,397,493 16,288,258 14,706,263 12,464,262 8,161,367 Culture and recreation 8,713,030 7,595,424 7,557,822 7,956,841 8,335,108 9,015,048 9,762,657 9,486,289 9,541,415 9,482,993 Interest on long-term debt 5,021,484 5,751,075 4,347,822 4,728,548 4,616,075 4,393,572 4,204,612 3,757,768 3,447,568 2,427,493

62,874,483 58,631,021 61,070,257 67,274,394 69,367,756 74,957,862 79,587,766 78,259,553 79,199,698 73,087,228

Water 8,400,283 8,782,419 9,125,289 8,432,457 9,981,559 10,680,298 12,646,555 15,664,688 16,841,738 17,571,245 Sewer and storm drain 815,612 1,020,180 953,609 945,970 1,143,778 3,512,671 1,325,972 1,165,562 1,665,141 2,053,522 Sanitation 6,564,775 6,822,254 7,102,612 7,477,306 8,220,606 8,516,066 8,412,422 8,314,584 8,640,626 8,581,865 Golf course/clubhouse 1,694,623 1,762,114 1,612,702 1,520,967 1,685,874 1,620,486 2,066,788 1,545,348 1,622,215 1,541,488

17,475,293 18,386,967 18,794,212 18,376,700 21,031,817 24,329,521 24,451,737 26,690,182 28,769,720 29,748,120 Total primary government expenses 80,349,776 77,017,988 79,864,469 85,651,094 90,399,573 99,287,383 104,039,503 104,949,735 107,969,418 102,835,348

Charges for services:General government 502,695 568,179 590,384 813,028 594,731 864,906 370,254 1,249,498 1,323,682 670,662 Publilc safetey 3,079,623 2,908,235 3,261,208 3,228,828 3,008,149 3,503,082 4,116,371 4,708,584 4,796,633 5,094,315 Public works 5,664 995 - 10,218 851 5,163 231,925 717,115 817,561 799,264 Housing, health, and community development 2,612,010 3,043,567 3,436,500 2,814,036 3,179,513 3,815,433 3,117,619 3,621,392 8,931,894 3,670,906 Culture and recreation 496,476 452,741 490,267 547,646 616,851 594,152 672,158 642,950 556,879 565,293

Operating grants and contributions 7,125,951 8,749,327 7,414,832 7,756,023 9,863,348 8,370,273 8,160,683 8,946,952 7,811,223 11,362,119 Capital grants and contributions 1,521,900 4,642,488 1,263,087 4,577,090 2,117,360 593,900 3,280,012 4,009,245 6,302,102 1,724,680

15,344,319 20,365,532 16,456,278 19,746,869 19,380,803 17,746,909 19,949,022 23,895,736 30,539,974 23,887,239

Charges for services:Water 8,718,283 8,656,418 9,694,556 10,207,474 11,749,432 13,076,300 14,093,897 16,854,298 17,662,974 20,042,797 Sewer and storm drain 967,566 995,001 1,019,656 1,127,960 1,209,722 4,131,300 2,870,951 3,533,392 4,211,250 4,969,467 Sanitation 6,805,836 7,003,196 7,246,446 7,353,039 7,618,551 7,896,414 8,045,969 8,056,419 8,079,632 8,159,101 Golf course/clubhouse 1,695,167 1,746,503 1,743,462 1,861,732 1,934,318 1,902,054 1,808,266 1,805,396 1,767,913 1,876,052

Operating grants and contributions 85,952 27,985 38,326 23,577 24,300 26,892 36,714 684,730 476,018 45,824 Capital grants and contributions - - - - 1,445,800 - - - - -

18,272,804 18,429,103 19,742,446 20,573,782 23,982,123 27,032,960 26,855,797 30,934,235 32,197,787 35,093,241 33,617,123 38,794,635 36,198,724 40,320,651 43,362,926 44,779,869 46,804,819 54,829,971 62,737,761 58,980,480

(47,530,164) (38,265,489) (44,613,979) (47,527,525) (49,986,953) (57,210,953) (59,638,744) (54,363,817) (48,659,724) (49,199,989) 797,511 42,136 948,234 2,197,082 2,950,306 2,703,439 2,404,060 4,244,053 3,428,067 5,345,121

(46,732,653) (38,223,353) (43,665,745) (45,330,443) (47,036,647) (54,507,514) (57,234,684) (50,119,764) (45,231,657) (43,854,868)

Governmental activities:Expenses

Fiscal Year

Businesss-type activities:

Program Revenues

Total business-type activities expenses

Governmental activities:

General governmentPublilc safetey

Total government activities expenses

Total government activities expenses

Net (expense) revenueGovernment activities:

General governmentBusiness-type activities

Total primary government program revenuesTotal business-type activities program revenues

Total governmental activities program revenues

Businesss-type activities:

(accrual basis of accounting)

CITY OF ALHAMBRAChanges in Net AssetsLast Ten Fiscal Years

118

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Taxes17,692,582 19,237,633 24,052,837 21,423,313 23,060,934 24,624,415 27,777,842 25,904,413 25,930,647 20,444,955 12,047,665 12,128,095 10,468,477 13,776,769 13,991,430 13,487,579 13,131,359 12,091,702 12,574,181 13,123,551

3,961,458 4,348,708 4,221,425 4,303,160 4,555,311 4,552,393 4,599,566 4,522,434 4,379,377 4,314,006 Franchise tax 1,063,813 1,165,356 1,231,947 1,371,068 1,429,838 1,409,671 1,620,966 1,397,198 1,582,465 1,374,734 Business license tax 1,458,267 1,384,247 1,533,009 1,498,874 1,530,590 1,541,285 1,560,820 1,459,853 1,525,781 1,540,172

518,628 529,567 3,887,105 645,067 689,745 748,634 342,860 344,337 580,551 183,436 5,079,061 4,073,449 2,417,745 6,108,755 6,533,060 6,927,605 7,099,620 7,223,858 7,414,885 7,202,924 1,487,082 1,366,338 1,618,268 2,668,448 3,490,700 2,247,446 1,028,098 448,075 279,229 117,604 1,763,167 1,436,459 2,201,204 1,004,947 1,132,770 1,131,283 1,312,104 3,272,048 4,055,729 3,893,175

Gain from dissolution of AlhambraRedevelopment Agency - - - - - - - - - 17,127,661

1,700,292 143,238 78,328 1,035,874 521,788 1,441,392 618,216 1,378,069 1,123,716 536,462 46,772,015 45,813,090 51,710,345 53,836,275 56,936,166 58,111,703 59,091,451 58,041,987 59,446,561 69,858,680

Business-type activities:505,521 285,767 368,987 445,149 1,566,729 1,068,213 440,663 198,203 125,419 114,178 101,920 275,246 617,957 2,016,250 176,436 227,227 202,195 332,311 100,769 240,940

(1,700,292) (143,238) (78,328) (1,035,874) (521,788) (1,441,392) (618,216) (1,378,069) (1,123,716) (536,462) (1,092,851) 417,775 908,616 1,425,525 1,221,377 (145,952) 24,642 (847,555) (897,528) (181,344) 45,679,164 46,230,865 52,618,961 55,261,800 58,157,543 57,965,751 59,116,093 57,194,432 58,549,033 69,677,336

(758,149) 7,547,601 7,096,366 6,308,750 6,949,213 900,750 (547,293) 3,678,170 10,786,837 20,658,691 (295,340) 459,911 1,856,850 3,622,607 4,171,683 2,557,487 2,428,702 3,396,498 2,530,539 5,163,777

$ (1,053,489) 8,007,512 8,953,216 9,931,357 11,120,896 3,458,237 1,881,409 7,074,668 13,317,376 25,822,468

Total governmental activities

Miscellaneous

Miscellaneous

Governmental activities:

Property taxes and assessmentsSales taxesUtility users tax

Unrestricted investment earnings

Transfers

Other taxes


Businesss-type activities:Governmental activities:

TransfersTotal business-type activitiesTotal primary government

Total primary government

Change in net assets

Unrestricted intergovernmentalUnrestricted investment earnings

Fiscal Year

General revenues and other changes in net assets

CITY OF ALHAMBRAChanges in Net AssetsLast Ten Fiscal Years

(accrual basis of accounting)

119

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

$ 2,926,070 3,227,981 3,022,484 3,028,210 749,277 580,523 365,112 522,890 - - 16,538,768 16,241,604 19,534,094 23,730,917 17,755,050 9,643,774 8,746,072 7,557,236 - -

Nonspendable - - - - - - - - 46,522 51,556 Restricted - - - - - - - - - 119,495 Committed - - - - - - - - 7,294,001 7,367,005 Assigned - - - - - - - - 360,215 1,333,226 Unassigned - - - - - - - - 2,344,568 374,673

19,464,838 19,469,585 22,556,578 26,759,127 18,504,327 10,224,297 9,111,184 8,080,126 10,045,306 9,245,955

27,595,721 24,312,813 22,487,486 41,592,776 42,722,548 25,635,948 22,428,284 21,825,732 - -

(242,323) 1,889,702 2,388,154 4,916,492 6,236,756 5,775,837 9,551,317 9,282,330 - - (7,098,360) (3,136,966) 923,321 (1,805,238) (5,303,620) (3,547,173) (7,661,214) (7,545,656) - -

Nonspendable - - - - - - - - 8,926,332 6,828,432 Restricted - - - - - - - - 22,672,174 13,455,344 Committed - - - - - - - - - - Assigned - - - - - - - - 270,055 - Unassigned - - - - - - - - (6,419,922) (903,290)

Total all other governmental funds 20,255,038 23,065,549 25,798,961 44,704,030 43,655,684 27,864,612 24,318,387 23,562,406 25,448,639 19,380,486

Total fund balances of governmental funds $ 39,719,876 42,535,134 48,355,539 71,463,157 62,160,011 38,088,909 33,429,571 31,642,532 35,493,945 28,626,441


Unreserved

Special revenue fundsUnreserved, reported in:

All other governmental funds

Capital projects funds

Total general fund

Reserved

Last Ten Fiscal Years(modified accrual basis of accounting)

ReservedGeneral Fund

Fiscal Year

CITY OF ALHAMBRAFund Balances of Governmental Funds

120

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

RevenuesTaxes and assessments $ 37,261,848 39,336,221 39,985,984 43,054,725 45,029,280 46,636,926 48,626,945 45,026,592 46,522,914 40,716,426 Licenses and permits 1,208,277 1,254,505 1,775,122 1,580,001 1,367,898 1,904,899 1,582,805 2,358,794 2,299,908 2,770,921 Intergovernmental 12,067,830 15,904,345 16,810,850 15,456,304 20,027,456 15,080,385 16,982,893 19,427,236 18,714,051 21,698,120 Investment earnings 3,162,298 3,106,190 3,111,466 4,395,910 5,712,610 4,165,743 2,684,660 2,297,144 1,944,025 1,411,878 Charges for services 2,745,897 2,724,631 3,042,586 2,870,798 3,323,144 3,779,933 3,838,378 4,359,652 5,525,040 4,593,070 Fines and forfeitures 1,733,777 1,813,283 1,890,014 1,988,748 1,730,365 1,895,449 2,447,778 2,779,388 2,635,261 2,896,230 Sale of property - - - - - - - - 4,574,440 - Other 2,155,026 1,247,368 972,877 976,394 2,634,908 997,554 2,028,670 2,532,749 3,871,871 3,501,797

Total revenues 60,334,953 65,386,543 67,588,899 70,322,880 79,825,661 74,460,889 78,192,129 78,781,555 86,087,510 77,588,442

ExpendituresCurrent:

General government 1,027,480 1,429,656 1,317,004 982,048 1,317,289 1,259,000 1,628,517 1,536,350 1,637,930 845,504 Public safety 26,173,997 27,534,308 31,459,090 33,303,657 34,765,412 38,983,131 38,043,590 38,267,493 39,097,289 40,806,858 Public works 4,106,566 4,092,478 3,701,915 4,031,038 4,264,232 4,315,686 4,089,876 4,074,480 4,025,650 3,684,696 Housing, health, and community development 3,715,021 4,383,188 4,491,376 4,336,792 5,760,374 6,021,223 6,128,649 9,341,786 5,947,773 6,238,845 Culture and recreation 6,861,963 6,898,772 6,577,665 7,349,102 7,516,724 8,188,781 8,682,199 8,140,923 7,706,239 7,198,675

Capital outlay 16,151,734 11,489,449 7,664,664 11,653,394 27,025,117 29,985,507 16,367,089 11,743,015 13,823,474 8,801,528 Debt service

Principal retirement 3,191,399 3,987,130 5,148,186 4,850,842 5,328,830 5,654,491 5,606,023 5,832,222 6,058,473 2,772,857 Interest and fiscal charges 4,928,162 5,793,180 4,421,709 4,932,743 4,955,481 4,752,191 4,427,486 4,136,512 3,828,575 2,588,833 Bond issuance costs - 1,029,481 - 1,201,430 - - - - - - Total expenditures 66,156,322 66,637,642 64,781,609 72,641,046 90,933,459 99,160,010 84,973,429 83,072,781 82,125,403 72,937,796

Excess of revenues over expenditures (5,821,369) (1,251,099) 2,807,290 (2,318,166) (11,107,798) (24,699,121) (6,781,300) (4,291,226) 3,962,107 4,650,646

Other financing sources (uses)Transfers in 14,868,709 13,536,879 11,918,356 14,171,000 15,273,367 15,217,753 15,256,365 14,695,984 11,355,057 8,232,977 Transfers out (13,536,125) (14,553,798) (11,428,024) (14,954,113) (16,663,927) (14,936,865) (14,274,750) (13,388,497) (11,034,646) (7,506,532) Issuance of debt - 38,070,000 - 28,888,400 3,195,212 92,238 - - - - Bond premium - 1,435,276 - 129,346 - - - - - - Bond discount - - - (15,480) - - - - - - Payment to bond escrow agent - (35,300,000) - (5,298,400) - - - - - - Proceeds from bonds remarketed - - - 3,149,832 - - - - - - Capital lease obligations 116,248 - - - - - - - - - Contractual obligations 3,037,076 878,000 - - - - - - - - Sale of capital assets - - 848,045 - - 254,893 1,140,347 16,820 (431,105) 12,423

Total other financing sources (uses) 4,485,908 4,066,357 1,338,377 26,070,585 1,804,652 628,019 2,121,962 1,324,307 (110,694) 738,868

Extraordinary items:Loss on the dissolution of the Alhambra

Redevelopment Agency - - - - - - - - - (12,521,398)

Net change in fund balances $ (1,335,461) 2,815,258 4,145,667 23,752,419 (9,303,146) (24,071,102) (4,659,338) (2,966,919) 3,851,413 (7,131,884)

Debt service as a percentage ofnoncapital expenditures 16.2% 18.2% 15.7% 16.4% 14.6% 13.7% 12.4% 12.8% 13.4% 8.0%


Fiscal Year

CITY OF ALHAMBRAChanges in Fund Balances of Governmental Funds

Last Ten Fiscal Years(modified accrual basis of accounting)

121

CITY OF ALHAMBRAAssessed Value and Estimated Actual Value of Taxable Property

Last Ten Fiscal Years

Fiscal year Taxable Taxable Totalended Secured Unsecured assessed Secured Unsecured assessed direct tax30-Jun government valuations Exemptions value government valuations Exemptions value rate2003 $ 3,518,842,049 39,108,875 (56,760,873) 3,501,190,051 661,518,664 153,523,107 (20,450,898) 794,590,873 0.29289 2004 3,830,338,593 47,741,619 (69,819,652) 3,808,260,560 698,848,008 147,012,407 (34,536,726) 811,323,689 0.28627 2005 4,105,604,708 45,656,548 (85,325,944) 4,065,935,312 764,794,411 160,222,389 (39,109,300) 885,907,500 0.29070 2006 4,437,429,235 47,612,333 (92,704,865) 4,392,336,703 873,408,918 158,496,655 (45,810,963) 986,094,610 0.29726 2007 4,844,800,926 53,909,975 (101,767,202) 4,796,943,699 952,278,819 126,240,843 (41,515,320) 1,037,004,342 0.29425 2008 5,190,008,680 54,850,236 (113,457,222) 5,131,401,694 1,075,457,143 121,032,877 (25,582,135) 1,170,907,885 0.30268 2009 5,432,124,576 57,647,798 (120,825,782) 5,368,946,592 1,179,087,592 113,499,153 (40,947,361) 1,251,639,384 0.30642 2010 5,523,618,410 56,477,222 (128,425,433) 5,451,670,199 1,232,747,077 115,983,974 (47,790,474) 1,300,940,577 0.29311 2011 5,591,204,770 50,323,276 (130,800,181) 5,510,727,865 1,210,388,159 113,969,759 (41,741,296) 1,282,616,622 0.28988 2012 5,746,622,591 49,677,634 (120,606,841) 5,675,693,384 1,214,467,173 115,291,216 (50,250,941) 1,279,507,448 0.26617

Note:

Redevelopment AgencyCity

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.

122

Agency 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012Basic Levy (1) 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000

Alhambra City School Dist 0.01988 0.02000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000Alhambra Unified School District 0.00000 0.00000 0.01949 0.06378 0.05942 0.05460 0.03625 0.05151 0.05996 0.07411County Detention Facilities 1987 Debt 0.00103 0.00099 0.00092 0.00080 0.00066 0.00000 0.00000 0.00000 0.00000 0.00000La Community College District 0.01460 0.01986 0.01810 0.01429 0.02146 0.00879 0.02212 0.02311 0.04031 0.03530La County Flood Control 0.00088 0.00046 0.00025 0.00005 0.00005 0.00000 0.00000 0.00000 0.00000 0.00000Metroplotitan Water District 0.00670 0.00610 0.00580 0.00520 0.00470 0.00450 0.00430 0.00430 0.00370 0.00370Mwd Excl. From City Of La Area-2104001 0.00330 0.00350 0.00290 0.00260 0.00230 0.00220 0.00210 0.00210 0.00200 0.00200San Gabriel Unified 0.05803 0.05224 0.05729 0.05284 0.04930 0.05741 0.09294 0.10070 0.10190 0.08454San Gabriel Vly Mwd State Water Bond 0.03910 0.03630 0.03230 0.03230 0.03230 0.03230 0.02830 0.02830 0.02830 0.02830Total Direct & Overlapping (2) Tax Rates 1.14352 1.13945 1.13704 1.17184 1.17019 1.15981 1.18600 1.21002 1.23617 1.22795

City's Share of 1% Levy Per Prop 13 (3) 0.16425 0.16425 0.16425 0.16425 0.16425 0.16425 0.16425 0.16425 0.16425 0.16425Redevelopment Rate (4) 1.02591 1.02408 1.02117 1.02084 1.02072 1.02000 1.01800 1.01800 1.01800 1.01800Total Direct Rate (5) 0.27431 0.26810 0.27258 0.27925 0.27745 0.28608 0.28992 0.29311 0.28988 0.26617

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 only to theincremental property values.(5) Total Direct Rate is the weighted average of all individual direct rates applied by the government preparing the statiscal section information.

Source: County of Los Angeles Tax Assessor and the HdL Companies.

CITY OF ALHAMBRADirect and Overlapping Property Tax Rates

(Rate Per $100 Of Taxable Value)Last Ten Fiscal Years

123

Percentage Percentage of total of total

Assessed assessed Assessed assessedvaluation valuation valuation valuation

Alhambra Office Community LLC $ 186,614,028 2.68% — 0.00%Price Company 36,754,161 0.53% 28,147,095 0.66%Tag 2 Medical Investment Group 21,500,000 0.31% — 0.00%Alhambra Realty LLC 20,780,054 0.30% — 0.00%International Extrusion Corporation — 0.00% 15,120,076 0.35%

20,196,986 0.29% 15,979,287 0.37%Bank Alhambra Property LLC 19,504,500 0.28% 0.00%Kohl's Department Stores Inc 18,514,982 0.27% — 0.00%ASP Realty Inc — 0.00% — 0.00%Alhambra Auto Properties LLC — 0.00% — 0.00%Wayne C. & Millicent J.Tam Trust 15,513,832 0.22% — 0.00%Southern Meridian LLC 15,267,309 0.22% 0.00%Medical Property Partners LLC 14,656,914 0.21% — 0.00%Campus 1000 Fremont LLC — 0.00% 71,860,330 1.67%Pacific Bell Information Services — 0.00% 41,460,400 0.97%Edwards Theatres Circuit — 0.00% 17,217,628 0.40%Charter Communications Entertainment II — 0.00% 16,854,463 0.39%Calmed Investment LP — 0.00% 14,398,997 0.34%Atherton Baptist Homes — 0.00% 12,655,271 0.29%Ortel Corporation — 0.00% 12,371,296 0.29%

Total $ 369,302,766 5.30% 246,064,843 5.73%

Source: County of Los Angeles Tax Assessor and the HdL Companies.

Home Depot U.S.A. Inc

CITY OF ALHAMBRAPrincipal Property Taxpayers

Current Year and Nine Years Ago

2012 2003

124

Property Tax Levies and CollectionsLast Ten Fiscal Years

(Unaudited)

Percent ofPercent of outstanding

Percent total tax delinquentFiscal year Current of current Delinquent collections Outstanding taxes to

ended Total tax tax taxes tax Total tax to total delinquent total taxJune 30 levy collections collected collections collections tax levy taxes levy

2003 $ 5,097,000 $ 4,833,000 95 $ 260,000 $ 5,093,000 100 $ 875,000 17 2004 5,441,000 5,225,000 96 257,000 5,482,000 101 835,000 15 2005 5,768,000 5,512,000 96 227,000 5,739,000 99 864,000 15 2006 6,287,000 5,503,000 88 237,000 5,740,000 91 1,409,000 22 2007 7,113,000 6,291,000 88 762,000 7,053,000 99 1,468,000 21 2008 7,364,000 6,653,000 90 738,000 7,391,000 100 1,441,000 20 2009 7,714,000 6,790,000 88 582,000 7,372,000 96 1,783,000 23 2010 7,814,000 7,152,000 92 938,000 8,090,000 104 1,507,000 19 2011 7,906,000 7,399,000 94 682,000 8,081,000 102 1,331,000 17 2012 8,169,000 7,649,000 94 508,000 8,157,000 100 1,343,000 16

Source: Los Angeles County Tax Assessor.

CITY OF ALHAMBRA

125

Fiscal Year Tax Certificates Certificates Total Percentage DebtEnded Allocation of Assessment Notes, Loan, Capital Lease Contractual of Capital Primary of Personal Per

June 30 Bonds Participation Bonds and Advances Obligations Obligations Participation Loans Leases Government Income Capita

2003 $ 35,300,000 30,570,575 6,470,000 5,669,031 1,082,707 6,335,859 3,524,425 - - 88,952,597 N/A 1,013 2004 36,120,000 29,655,400 6,215,000 5,423,497 859,741 6,481,707 3,109,600 - - 87,864,945 55 990 2005 34,525,000 28,631,400 5,945,000 3,720,000 659,466 6,481,606 2,698,600 - - 82,661,072 N/A 924 2006 54,555,000 28,477,150 5,660,000 3,510,000 447,930 5,832,483 16,982,850 1,957,812 - 117,423,225 N/A 1,306 2007 51,870,000 27,165,480 5,360,000 6,395,824 244,588 5,101,030 16,149,520 1,957,812 - 114,244,254 N/A 1,284 2008 49,075,000 25,777,290 5,045,000 5,977,376 154,071 4,243,204 15,112,710 1,957,812 - 107,342,463 N/A 1,211 2009 46,165,000 24,317,160 4,710,000 5,542,493 73,851 3,855,831 13,997,840 1,957,812 - 100,619,987 N/A 1,135 2010 43,135,000 22,826,340 4,355,000 5,075,922 56,343 3,383,508 12,928,660 1,762,031 - 93,522,804 N/A 1,053 2011 39,975,000 21,256,220 3,980,000 4,572,400 37,941 2,952,079 12,338,780 1,566,250 - 86,678,670 N/A 968 2012 - 19,586,660 3,580,000 4,046,653 18,510 - 11,718,340 1,370,469 - 40,320,632 N/A 482

N/A - Not available


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

CITY OF ALHAMBRA

Ratios of Outstanding Debt by Type,


Business-type ActivitiesGovernmental Activities

126

TaxFiscal Year allocation Percent of

Ended bonds assessed PerJune 30 outstanding value (1) capita

2003 $ 35,300,000 0.82% 402 2004 36,120,000 0.78% 407 2005 34,525,000 0.70% 386 2006 54,555,000 1.01% 607 2007 51,870,000 0.89% 583 2008 49,075,000 0.78% 554 2009 46,165,000 0.70% 521 2010 43,135,000 0.64% 486 2011 39,975,000 0.59% 447 2012 — 0.00% —


General bonded debt is debt payable with governmental fund resources and general obligation bonds recorded in enterprise funds (of which the City has none).

(1) Assessed value has been used because the acctual value of taxable property is not readily available in the State of California.

CITY OF ALHAMBRARatios of General Bonded Debt Outstanding

Last Ten Fiscal years

127

PercentGross bonded applicable Net bondeddebt balance to city debt

Overlapping debt:*Metropolitan Water District 94,031,705 0.005 4,722

68,950,000 1.195 823,953 15,010,000 1.195 179,370 74,615,000 1.195 891,650

430,410,000 1.195 5,143,404 L.A. CCD DS 2001, 2006 Series B 382,575,000 1.195 4,571,776 L.A. CCD DS 2003, 2006 Series C 284,050,000 1.195 3,394,401 LACC DS 2001, 2008 Series E-1 275,580,000 1.195 3,293,184 LACC DS 2003, 2008 Series F-1 344,915,000 1.195 4,121,738 LACC DS 2003, 2008 Taxable Series F-2 3,805,000 1.195 45,470 LACC DS 2008, 2009 Taxable Series A 350,000,000 1.195 4,182,504 LACC DS 2008, 2009 Taxable Series B 75,000,000 1.195 896,251

175,000,000 1.195 2,091,252 900,000,000 1.195 10,755,010 125,000,000 1.195 1,493,751

San Gabriel USD DS 2002 Series A 1,832,600 0.073 1,333 San Gabriel USD DS 2002 Series B 5,128,892 0.073 3,731 San Gabriel USD DS 2005 & 2012 Ref Bonds 26,355,000 0.073 19,173 San Gabriel USD DS 2002 Series 2007 C 10,727,878 0.073 7,804 San Gabriel USD DS 2008 Series A 34,356,709 0.073 24,994 Alhambra USD DS 99 Series B 5,580,561 67.338 3,757,858 Alhambra USD DS 2005 Refunding Bonds 6,190,000 67.338 4,168,244 Alhambra USD DS 2004 Series A 43,880,000 67.338 29,548,069

43,903,335 67.338 29,563,782 24,799,987 67.338 16,699,903 24,999,721 67.338 16,834,400

Total overlapping debt 142,517,727 City direct debt:

Certificates of participation 19,586,660 Assessment bonds 3,580,000 Notes, loans, advances 4,046,653 Capital leases 18,510

Total city direct debt 27,231,823 Total overlapping and direct debt $ 169,749,550

Debt to assessed valuation ratios: Direct debt 0.47%Overlapping debt 2.46%Total debt 2.93%

* This fund is a portion of a larger agency, and is responsible for debt in areas outside the city.

L.A. CCD DS 2003 Taxable Series 2004BL.A. CCD DS 2001 Taxable Series 2004ALACC DS Refunding 2001 Series 2005A

Alhambra USD-Garvey DS 2004 Series B

LACC Debt 2010 Tax Series E (BABS)

Alhambra USD DS 2008 Series BAlhambra USD DS 2008 Series B-1 QSCB

LACC DS 2008, 2010 Series C

CITY OF ALHAMBRADirect and Overlapping Debt

Current Year and Nine Years Ago(Unaudited)

LACC Debt 2008, 2010 Tax Series D

2011/12 assessed valuation: $5,793,027,888 after deducting $1,162,172,944 incremental value.

L.A. CCD DS 2003 Series B

2012

128

PercentGross bonded applicable Net bondeddebt balance to city debt

Overlapping debt:LA CO Detention Facilities 1987 Deb Svc 30,225,000 0.617 186,499 LA CO Flood Control (Storm Drain Bd No. 4) 10,110,000 0.648 65,532

845,000 0.648 5,477 19,960,561 66.697 13,313,053

LA City Community College 2001 Series A DS 507,030,000 1.200 6,083,487 LA CCD DS 2003 Ser B 82,000,000 1.200 984,010 LACCD DS 2003 Series C 9,720,000 1.200 116,641 LA CCD DS 2003 Ref Bond S-A 97,965,000 1.200 1,175,591 San Gabriel USD DS 2002 Ser A 28,432,600 0.040 11,269

Total overlapping debt 21,941,559 City direct debt:

Tax allocation bonds 35,300,000 Certificates of participation 30,570,575 Assessment bonds 6,470,000 Notes, loans, advances 5,669,031 Capital leases 1,082,707 Contractual obligations 6,335,859

Total city direct debt 85,428,172 Total overlapping and direct debt $ 107,369,731

Debt to assessed valuation ratios: Direct debt 2.36%Overlapping debt 0.57%Total debt 2.93%

This report reflects debt which is being repaid through voter-approved property tax indebtedness. It excludes mortgage revenue,tax allocation bonds, interim financing obligations, non-bonded capital obligations, and certificates of participation, unless providedby the city.

Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the city. The percentage ofoverlapping debt applicable is estimated by taxable assessed values. Applicable percentages were estimated by determining theportion 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.

2003

2002/03 assessed valuation: $3,619,110,965 after deducting $676,669,959 incremental value.

Flood Control Ref Bonds 1993 Dbt SvcAlhambra City Elem Sch Dis 1999 Ser A DS

CITY OF ALHAMBRADirect and Overlapping Debt

Current Year and Nine Years Ago(Unaudited)

Source: City of Alhambra Finance Department and the HdL Companies.

129

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Assessed valuation $ 4,372,797,809 4,718,653,627 5,073,688,056 5,516,947,141 5,516,947,141 6,441,348,936 6,782,359,119 6,928,826,683 6,965,885,964 7,126,058,614

Conversion percentage 25% 25% 25% 25% 25% 25% 25% 25% 25% 25%

Adjusted assessed valuation 1,093,199,452 1,179,663,407 1,268,422,014 1,379,236,785 1,379,236,785 1,610,337,234 1,695,589,780 1,732,206,671 1,741,471,491 1,781,514,654

Debt limit percentage 15% 15% 15% 15% 15% 15% 15% 15% 15% 15%

Debt limit 163,979,918 176,949,511 190,263,302 206,885,518 206,885,518 241,550,585 254,338,467 259,831,001 261,220,724 267,227,198

0 0 0 0 0 0 0 0 0 0

$ 163,979,918 176,949,511 190,263,302 206,885,518 206,885,518 241,550,585 254,338,467 259,831,001 261,220,724 267,227,198

0% 0% 0% 0% 0% 0% 0% 0% 0% 0%

Source: City of Alhambra Finance DepartmentCounty of Los Angeles Tax Assessor

Total net debt applicable to limit

CITY OF ALHAMBRALegal Debt Margin Information


Legal debt margin

Total net debt applicable to the limias a percentage of debt limit

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.

130

Special WaterFiscal Assessments Tax SystemYear Collections Principal Interest Coverage Increment Principal Interest Coverage Net Revenue Principal Interest Coverage

2003 $ 2,866,022 245,000 395,301 4.48 5,435,615 1,015,000 2,025,758 1.79 (1) - - - 2004 2,860,202 255,000 382,113 4.49 6,310,916 1,950,000 2,971,136 1.28 (1) - - - 2005 2,978,015 270,000 368,065 4.67 6,371,316 1,595,000 1,668,840 1.95 (1) - - - 2006 3,004,535 285,000 352,936 4.71 7,515,638 2,630,000 2,219,836 1.55 (1) - - - 2007 3,057,041 300,000 336,700 4.80 7,336,635 2,685,000 2,394,783 1.44 2,436,734 340,000 446,548 3.10 2008 3,173,110 315,000 318,653 5.01 7,859,086 2,795,000 2,296,863 1.54 3,199,148 500,000 625,168 2.84 2009 3,206,907 335,000 298,747 5.06 9,928,859 2,910,000 2,185,533 1.95 2,366,819 525,000 594,835 2.11 2010 3,192,399 355,000 277,616 5.05 8,341,468 3,030,000 2,060,451 1.64 1,893,046 550,000 579,043 1.68 2011 3,261,550 375,000 255,259 5.17 8,335,398 3,160,000 1,928,751 1.64 2,394,557 570,000 554,293 2.13 2012 3,435,974 400,000 231,525 5.44 4,991,629 — 898,655 5.55 3,354,406 600,000 519,691 3.00

(1) Certificates were issued 2006

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


Debt Service

CITY OF ALHAMBRAPledged-Revenue Coverage


Debt Service Debt Service

Special Assessment Bonds Tax Allocation Bonds Water Revenue Certificates of Participation

131

(2) (2)Personal PerIncome Capita (2) (3)

Calendar (1) (thousands Personal Median UnemploymentYear Population of dollars) Income Age Rate2002 $ 87,848 $ 1,547,050 $ 17,611 — 5.82003 88,713 1,592,628 17,953 — 6.02004 89,432 1,669,254 18,665 — 5.62005 89,929 1,740,320 19,352 — 4.62006 88,990 1,813,001 20,373 — 4.12007 88,637 1,865,949 21,052 — 4.32008 88,614 1,879,363 21,208 — 6.42009 88,846 1,840,621 20,717 36.4 10.02010 89,501 2,066,936 23,094 38.2 10.92011 83,661 2,028,528 24,247 38.7 10.6

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 StatisticsLast Ten Calendar Years

CITY OF ALHAMBRA

132

Percentage Percentage Number of of Total Number of of Total

Employer Employees Employment Employees Employment

Los Angeles County Public Works 3,600 0.13% 1,700 N/AAlhambra City Schools 2,136 0.08% 3,465 N/ACounty of Los Angeles (at The Alhambra) 1,500 0.06% 815 N/AEdison Company 800 0.03% 578 N/AAlhambra City Hall 675 0.02% 652 N/AAlhambra Hospital 600 0.02% 500 N/ALA County Community Development Commission 482 0.02% — N/AEmpire Building Maintenance 420 0.02% — N/ACostco 369 0.01% 300 N/ATarget 275 0.01% — N/ASBC — 980 N/ASouthwest Administrators@The Alhambra — 0.00% 300 N/AUSC School of Medicine (at The Alhambra) — 0.00% 283 N/A

N/A - Not available

"Total Employment" as used above represents the total employment of all employers located within City limits.

Source: City of Alhambra Development Services Department

2012 2003

CITY OF ALHAMBRAPrincipal Employers

Current Year and Nine Years Ago

133

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

General government 51.2 51.2 48.2 48.2 49.7 50.7 49.9 48.4 44.7 41.4City council 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0Management services 6.4 6.4 6.4 6.4 6.9 6.9 6.4 5.6 5.8 5.4Administrative services 5.8 5.8 4.8 4.8 5.8 5.8 5.0 6.3 6.3 6.3Communications 2.0 2.0 1.0 1.0 1.0 2.0 2.0 2.0 2.0 2.0Finance 20.1 20.1 19.1 19.1 19.1 19.1 19.1 18.1 18.1 14.1Personnel 5.9 5.9 5.9 5.9 5.9 5.9 6.4 6.4 3.0 4.2Code enforcement 6.0 6.0 6.0 6.0 6.0 6.0 6.0 5.0 4.5 4.4

Police 158.4 158.4 150.4 150.4 154.4 154.4 154.4 153.4 153.4 141.4Officers 94.0 94.0 86.0 86.0 90.0 91.0 91.0 90.0 90.0 90.0Other 64.4 64.4 64.4 64.4 64.4 63.4 63.4 63.4 63.4 51.4

Public safety 241.1 241.1 233.1 233.1 240.1 240.1 233.1 232.1 232.1 209.1Fire 82.7 82.7 82.7 82.7 85.7 85.7 78.7 78.7 78.7 67.7

Firefighters/paramedics 74.0 74.0 74.0 74.0 77.0 77.0 68.0 68.0 68.0 60.0Other 8.7 8.7 8.7 8.7 8.7 8.7 10.7 10.7 10.7 7.7

Public works 36.0 36.0 32.7 32.7 32.6 32.8 32.8 32.8 30.8 26.6

Housing, health and community development 10.1 10.1 10.1 10.1 9.6 9.1 9.1 8.4 7.5 3.9

Library 31.2 31.2 31.9 31.9 31.9 31.9 35.4 35.4 34.4 30.9

Community services 74.7 74.7 74.7 74.7 76.2 76.2 76.2 71.5 69.9 55.5

Water 36.7 36.7 37.7 37.7 38.9 38.9 38.5 39.0 46.5 53.3

Sewer and storm drain 7.3 7.3 7.3 7.3 7.3 8.3 8.3 8.3 6.8 6.8

Sanitation 12.7 12.7 16.0 16.0 20.0 19.9 20.3 20.3 20.3 16.4

Redevelopment agency 5.8 5.8 5.8 5.8 6.3 6.3 5.8 6.4 6.4 6.4

Total 506.8 506.8 497.5 497.5 512.6 514.2 509.4 502.6 499.4 450.3


Function/Program

CITY OF ALHAMBRAFull-time Equivalent City Government Employees by Function/Program,


134

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Arrests 2,105 2,314 1,874 1,996 1,933 2,303 2,557 2,154 1,941 18,002 911 calls 14,063 13,279 12,471 19,831 22,636 22,270 21,567 21,441 23,028 29,744

FireNumber of emergency calls in city 4,896 4,757 4,752 5,002 5,287 4,724 4,717 4,717 5,301 4,849 Inspections 912 809 884 530 1,342 1,389 1,200 1,037 1,744 1,277

Street light bulbs replaced 898 1,076 2,103 1,455 1,590 1,301 1,379 981 875 902 Concrete repaired - linear feet 30,976 41,758 17,054 17,627 29,360 17,000 18,103 21,559 23,625 22,700 Graffiti abatement - square feet 169,242 272,490 147,883 217,248 780,595 212,267 318,582 145,522 146,830 146,176 Street sweeping miles 19,834 19,322 20,593 19,587 22,951 26,006 27,133 26,570 26,569 26,757 Trees trimmed 6,028 5,577 6,100 6,305 7,551 7,754 6,752 6,359 7,133 6,716

BuildingNumber of residential permits issued 1,421 1,432 1,476 1,526 1,197 1,064 715 741 717 758 Number of commercial permits issued 487 410 379 318 406 321 206 178 181 141

Number of recreation participants (1) 4,803 3,115 3,190 3,228 3,387 2,723 120,185 111,588 191,998 107,032 Number of facility rentals 2,065 2,065 2,100 2,150 2,841 4,483 5,427 5,592 3,644 4,225

98,201 98,310 98,622 98,800 101,556 101,388 101,297 103,033 104,214 102,813 Average daily consumption N/A 11,343,145 11,386,343 10,765,144 11,868,493 11,581,100 13,627,000 12,459,819 12,204,162 12,085,306

N/A 16,438 16,504 16,611 16,926 16,898 16,442 16,763 16,801 16,804 N/A N/A 1,840 1,840 1,840 2,555 2,550 2,555 2,555 2,555

SanitationNumber of trash pickups 18,868 18,884 18,837 18,857 18,862 18,869 18,877 18,869 18,835 18,807

471,889 345,780 488,766 472,413 465,518 513,412 555,072 548,948 580,332 612,732

LibraryNumber of items circulated 537,775 509,746 538,922 555,203 459,197 358,744 407,709 509,583 511,516 475,386 Number of items catalogued 13,423 11,932 13,021 9,498 10,902 14,480 18,964 21,048 18,276 16,873 Number of questions answered 88,534 97,691 106,462 94,730 81,078 70,957 96,467 107,648 104,154 113,406 Number of registrations 8,269 6,748 7,702 7,453 5,936 7,325 12,524 11,619 10,596 10,355 Children's program attendance 11,953 8,317 6,789 13,776 4,983 6,597 9,810 12,201 15,008 16,279

Golf course74,033 76,234 73,173 78,599 81,052 79,461 77,649 72,029 64,062 64,000

(1) Data collection method revised beginning 2009N/A - Not available

Meter reads

Parks and recreation

Water

Fiscal Year

Police

Public works

Golf rounds played

Source: City of Alhambra

CITY OF ALHAMBRAOperating Indicators by Function


Community transit ridership

SewerSewer service connectionsLift station inspections

Transit

135

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

1 1 1 1 1 1 1 1 1 1

Fire4 4 4 4 4 4 4 4 4 4

Street lights 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000130 130 130 130 130 130 130 130 130 130

Alleys (miles) 16 16 16 16 16 16 16 16 16 16

6 6 6 6 6 6 6 6 6 6BallfieldsCommunity centers 1 1 1 1 1 1 1 1 1 1

Water reservoir tanks 13 13 13 13 13 13 13 12 12 12Reservoir storage (millions of gallons) 27.58 27.58 27.58 27.58 27.58 27.58 27.58 27.58 27.58 27.58Wells 12 12 12 12 12 12 12 12 12 12

130 130 130 130 130 130 130 130 130 130 Storm catch basins 1,101 1,101 1,101 1,101 1,101 1,101 1,101 1,101 1,101 1,101

N/A N/A N/A 167,521 174,848 175,947 176,244 176,252 177,109 187,605

LibraryLibraries 1 1 1 1 1 1 1 1 1 1

Golf course1 1 1 1 1 1 1 1 1 1

N/A - Not available

Municipal golf courses

Source: City of Alhambra

CITY OF ALHAMBRACapital Asset Statistics by Function


Total community transit route miles

SewerSewer mains (miles)

Transit

Public works

Street (miles)

Parks and recreationParks

Water

Fiscal Year

Fire stations

PoliceStations

136

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