CITY OF CERRITOS, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT WITH REPORT ON AUDIT BY INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS FISCAL YEAR ENDED JUNE 30, 2009 Ms. Denise D. Manoogian Director of Administrative Services City of Cerritos Comprehensive Annual Financial Report For the year ended June 30, 2009 Table of Contents Page INTRODUCTORY SECTION City Manager and Director of Administrative Services Letter of Transmittal ................................................. i Principal Officials ...................................................................................................................................................... vii Organization Chart.................................................................................................................................................... viii GFOA Certificate of Achievement for Excellence in Financial Reporting ........................................................ ix FINANCIAL SECTION Independent Auditors’ Report ............................................................................................................................... 1 Management’s Discussion and Analysis (Unaudited) ...................................................................................... 3 Basic Financial Statements: Government-wide Financial Statements: Statement of Net Assets ............................................................................................................................... 23 Statement of Activities ................................................................................................................................. 24 Fund Financial Statements: Governmental Fund Financial Statements: Balance Sheet .......................................................................................................................................... 28 Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Assets ..................................................................... 29 Statement of Revenues, Expenditures and Changes in Fund Balances ............................................................................................................. 30 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government-Wide Statement of Activities and Changes in Net Assets ................................................................... 31 Proprietary Fund Financial Statements: Statement of Net Assets ........................................................................................................................ 34 Statement of Revenues, Expenses and Changes in Net Assets ....................................................... 35 Statement of Cash Flows ....................................................................................................................... 36 Notes to Basic Financial Statements ............................................................................................................... 37 City of Cerritos Comprehensive Annual Financial Report For the year ended June 30, 2009 Table of Contents, Continued Page FINANCIAL SECTION, Continued Required Supplementary Information (Unaudited) ........................................................................................ 79 Notes to Required Supplementary Information ............................................................................................. 80 Budgetary Comparison Schedule: General Fund ................................................................................................................................................. 81 Supplementary Information: Non-Major Governmental Funds: Combining Balance Sheet ............................................................................................................................ 86 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ........................... 90 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual: Street Improvements Special Revenue Fund ..................................................................................... 94 Traffic Congestion Special Revenue Fund ......................................................................................... 95 Drainage Special Revenue Fund .......................................................................................................... 96 Sewer Special Revenue Fund ............................................................................................................... 97 SB 821 Special Revenue Fund ............................................................................................................... 98 Proposition “A” Special Revenue Fund ............................................................................................. 99 Proposition “C” Special Revenue Fund .............................................................................................. 100 Assessment District #6 Special Revenue Fund .................................................................................. 101 Los Coyotes Lighting District Special Revenue Fund ...................................................................... 102 Public Safety Grants Special Revenue Fund ...................................................................................... 103 Library Grants Special Revenue Fund ................................................................................................ 104 Environmental Grant Special Revenue Fund .................................................................................... 105 AQMD Special Revenue Fund ............................................................................................................. 106 Internal Service Funds: Combining Statement of Net Assets .......................................................................................................... 108 Combining Statement of Revenues, Expenses and Changes in Net Assets ......................................... 109 Combining Statement of Cash Flows ........................................................................................................ 110 City of Cerritos Comprehensive Annual Financial Report For the year ended June 30, 2009 Table of Contents, Continued Page STATISTICAL SECTION (Unaudited) Description of Statistical Section Contents ............................................................................................................ 111 Financial Trends: Net Assets by Component – Last Seven Fiscal Years .................................................................................... 112 Changes in Net Assets – Expenses and Program Revenues - Last Seven Fiscal Years ............................. 114 Changes in Net Assets – General Revenues - Last Seven Fiscal Years ........................................................ 116 Fund Balances of Governmental Funds - Last Seven Fiscal Years ............................................................... 118 Changes in Fund Balances of Governmental Funds - Last Seven Fiscal Years .......................................... 120 Governmental Activities Revenues by Sources - Last Ten Fiscal Years ...................................................... 122 Revenue Capacity: Assessed Value of Taxable Property - Last Ten Fiscal Years ........................................................................ 124 Assessed Value of All Taxable Property - Last Ten Fiscal Years ................................................................. 126 Property Tax Rates – All Direct and Overlapping Governments – Last Ten Fiscal Years ....................... 127 Ten Largest Secured Taxpayers – Current Year and Nine Years Ago ........................................................ 128 Property Tax Levies and Collections - Last Ten Fiscal Years ....................................................................... 129 Debt Capacity: Ratios of Outstanding Debt by Type - Last Seven Fiscal Years .................................................................... 130 Schedule of Direct and Overlapping Bonded Debt ........................................................................................ 132 Legal Debt Margin Information- Last Seven Fiscal Years ............................................................................. 134 Demographic and Economic Information: Demographic and Economic Statistics - Last Seven Fiscal Years ................................................................. 136 Principal Employers – Current Year and Seven Years Ago .......................................................................... 137 Operating Information: Full-Time and Part-Time City Employees by Function - Last Seven Fiscal Years ..................................... 138 Operating Indicators by Function - Last Seven Fiscal Years ........................................................................ 139 Capital Asset Statistics by Function - Last Seven Fiscal Years ..................................................................... 140 Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed In Accordance With Government Auditing Standards ............................................................................... 141 December 1, 2009 Honorable Mayor and Members of the City Council It is our pleasure to present the Comprehensive Annual Financial Report of the City