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Home My WebLink AboutCity of La Puente - Public Financial ReportPo p u l a r A n n u a l F i n a n c i a l R e p o r t Fi s c a l Y e a r e n d i n g J u n e 3 0 th , 2 0 2 1 LA PUENTE CALIFORNIA “where the past meets the future” INTRODUCTION ABOUT THIS REPORT Thank you for your interest in the Popular Annual Financial Report (PAFR)for the fiscal year ending June 30,2021.This report offers a summary of the City’s financial information for Fiscal Year 2020- 2021,presented in a manner that is easily understandable.The purpose of the PAFR is to provide citizens with a simple way to learn how public resources are used throughout the community.The PAFR is informational,and it does not constitute a formal financial statement. The data presented in the PAFR is taken directly from the audited Annual Consolidated Financial Report (ACFR), which is prepared in accordance with generally accepted accounting principles (GAAP).To view the full Annual Comprehensive Financial Report (ACFR)for the 2020/2021 Fiscal Year, please visit www.lapuente.org/government/departments/finance or call (626)855-1500. STAFF MESSAGE Dear Honorable Mayor, Members of the City Council, and La Puente community: Fiscal Year 2020-2021 was ushered in by the early months of the COVID-19 pandemic.The uncertainty felt by many across the nation was reflected within our local community. Business owners,students,teachers,and families were forced to adapt to a new reality –one marked by less economic opportunity,increased concerns about health and welfare,and a stark isolation that prevented us from engaging in many of our most cherished forms of human connectedness. This uncertainty resonated within City Hall as well. In preparing the Fiscal Year 2020-2021 Annual Budget,the City Council and staff adopted an outlook of fiscal conservatism,paring down expenditures in order to maintain a balanced budget amid reduced revenue forecasts. As the fiscal year progressed,the initial concerns about economic austerity lessened.Infection rates fell and retail capacities increased.General Fund revenues exceeded their budgets,and one-time special revenues from the federal government eased the burden of COVID-related expenses. The financial results displayed in this report should reassure all within La Puente that our City is strong and ready to meet the challenges of the future.As we enter 2022,the City maintains its focus on public safety and capital improvements,especially local roadways and park facilities. We would like to acknowledge the City Council for its leadership throughout the year, as well as the citizens of La Puente.The dignity with which you participate in civic affairs is an example to communities everywhere,and it is our honor to serve you daily. Bob Lindsey Troy Grunklee,CPA Alexander Merkel Medina City Manager Director of Administrative Services Finance Manager 1 LA PUENTE FAST STATS POPULATION 39,908 POPULATION 38,062 3.5 SQUARE MILES 82.9% LATINO INCORPORATED 1956 UNEMPLOYMENT 13.0% RANKED TOP 25 IN GREATER LA FOR FISCAL RESERVES BY STATE AUDITOR MEDIAN AGE 33 11.8% ASIAN AMERICAN 40.3% FOREIGN BORN 17,826 STUDENTS ENROLLED 24.2 ACRES OF PARKS 64.3 MILES OF SEWER MEDIAN INCOME $64,592 74% SINGLE FAMILY HOMES 63.32 TONS REFUSE/DAY 2 CITY GOVERNMENT LA PUENTE CITY COUNCIL Council Member Violeta Lewis Mayor Charlie Klinakis Mayor Pro-Tem Valerie Muñoz Council Member Gabriel Quiñones Council Member David Argudo ORGANIZATIONAL STRUCTURE CITY COUNCIL CITIZENS OF LA PUENTE CITY MANAGER CITY COUNCILCITY ATTORNEY ADMINISTRATIVE SERVICES Finance Business License Human Resources Information Tech. DEVELOPMENT SERVICES Building & Safety Planning & Zoning Engineering Capital Projects/CIP Public Works Parks Housing COMMUNITY SERVICES Recreation Senior Services Youth Activities Community Events Social Media PUBLIC SAFETY Code Enforcement Animal Control Police (L.A. Sheriff) PROS Team CITY CLERK Public Records Contracts Council Services Elections 3 FISCAL CYCLE Annual Budget Adopted –Fiscal Year Begins (July 1st ) Expenses & Revenues Recorded (daily) End of Fiscal Year (June 30th) Audit by CPA Firm (Sept.-Oct.) ACFR Published (December) KEY TERMS Budget –a financial plan for the fiscal year legally authorizing the spending of City funds. Adopted by City Council prior to June 30th of each year. Fiscal Year –the reporting period for financial transactions, from July 1st to June 30th of the next calendar year. (ACFR) -Annual Comprehensive Financial Report –formal, audited report of actual financial results of a fiscal year.4 REVENUES GOVERNMENTAL ACTIVITY REVENUES (income received by the City)totaled $26,383,814 in Fiscal Year 2020-2021.As the chart below shows,Sales Tax and Property Tax are the largest sources. ACFR Connection To learn more about revenue, see Pgs. 18-23 of the FY 20-21 ACFR 5 EXPENSES GOVERNMENTAL ACTIVITY EXPENSES (money spent by the City throughout the Fiscal Year) totaled $23,026,902. Public Safety is the largest expense, at 35% of total. This category includes the policing contract with the Los Angeles County Sheriff’s Department. Ranked Top 25 out of 130 Cities in the LA area for General Fund reserves by California State Auditor’s Office ACFR Connection To learn more about expenses, see Pgs. 18-23 of the FY 20-21 ACFR 6 FUND BALANCE FUND BALANCE is the City’s accumulated reserve of money, much like a savings account. Fund balances increase when revenues exceed expenses (surplus).They decrease when a deficit occurs, and expenses are greater than revenues. Fund balances can be spent on projects, payroll, or operating costs. Fund Balance in the General Fund increased in FY 20-21 by $2,034,644. FUND PURPOSE FUND BALANCE General Fund Main operating fund. May be used for any government purpose. $26,878,350 Gas Tax Street and road maintenance/ construction.$956,432 Measure M Street and road maintenance/construction.$517,927 Measure R Street and road maintenance/construction.$444,356 Proposition C Transportation infrastructure/operations.$1,797,385 Proposition A Transportation infrastructure/operations.$825,642 PEG Access Fund Promotion of citizen participation.$160,826 Cal-Home Grant Fund Provide grants for housing.$1,428,255 Air Quality Fund Purchase of clean air fleet vehicles.$59,614 Housing Fund Promote affordable housing.$318,756 2019A & 2019B Capital Project Funds Bond funds for street construction.$5,937,792 Measure W Stormwater management.$207,140 Landscape & Lighting Maintenance District Fund Street lighting, construction, parkway landscape, park and facility maintenance. $734,379 Miscellaneous Grants State and federal grants for projects.$(93,053) FUND PURPOSE NET POSITION* Sewer Maintenance/Const.Construction and maintenance of sewer.$8,535,602 Internal Service Fund Funds City fleet vehicles and computers.$1,496,160 Successor Agency Fund Former LP CDC/Redevelopment Agency.$(18,084,916) Proprietary and fiduciary funds use the term net position rather than fund balance since they are full accrual basis* One-time revenues have been excluded from this table including COVID-19 relief funds and debt service funds** ACFR Connection To learn more about fund balance, see Pgs. 20,24, 27 & 66-69 of the FY 20-21 ACFR 7 ASSETS AND LIABILITIES GOVERNMENT WIDE ASSETS AND LIABILITIES Net Position $76,201,631 Assets (what we own) $117,564,101 Current Assets (Cash, accounts receivable, investments) $53,282,158 Capital Assets (Roads, traffic signals, streetlights, parks, sidewalks, sewers) $53,662,294 Deferred Outflows of Resources $10,619,649 Liabilities (what we owe) $41,362,470 Other Liabilities (Accounts payable, wages payable $6,324,622 Long Term Liabilities(Debt, bond issuances) $34,714,525 Deferred Inflows of Resources $323,323 ACFR Connection To learn more, see the Statement of Net Position on Pg. 17 of the FY 20-21 ACFR 8 LONG TERM FINANCE 211,200 Square Feet of Roads Resurfaced La Puente recorded $13,787,759 in additions to capital assets in its FY 20-21 ACFR. Here’s what that means in our community: $3,775,788 Increase in Capital Assets in FY 20-21 Investing in community infrastructure for decades to come Local Streets Pavement Resurfacing Project Park Master Plan & Skate Park $8,517,000 Raised in 2020A Pension Obligation Bonds Saving future retirement costs ACFR Connection To learn more, see Pgs. 7 and 17 of the FY 20-21 ACFR 9 Fi s c a l Y e a r 2 0 1 9 - 20 2 0 City of La Puente 15900 E. Main Street, La Puente, CA 91744 –(626) 855-1500 –www.lapuente.org10