SUBJECT: PUBLIC HEARING: PROPOSED BASIS AND METHOD OF LEVYING ASSFSSMFNTS A N n THE LEW OF THE ANNUAL ASSESSMENT FOR , .ww---...-. - . - . .. -- PROGPAM YEA!? 2005 FOR THE SOUTH L4KE BUS!NESS IMPROVEMENT DISTRICT

It is recommended that the City Council ("City Councilii) take the foilowing actions:

3. At the conclusion of the public hearing, adopt a resolution (Attachment I) establishing the basis and method of levying assessments within the South Lake Business !mprwemn? DIstric? ltfnr ?r~gram - Year 2005.

. . & ;is iiieeiiiig v"; March 21, 26iT;5, ;he City. cColiiieii iibopieb Resoiliiioii No. 8451 deciaring its intention to (1 j esiabiish the basis and mihod of ievying assessments, and -. (2j ievy assessments for businesses within the District for Program Year 2005. I ne resolution fixed April 4. 2005 at 8:00 p.m. for a public hearing to consider the proposed annual assessments for Program Year 2005. Notice of the public hearing was given by pub!ishing the reso!u?inn of Intention in The Pasadena -- - Star New - on Mar& 28, 2005.

After the City Councii hears and consider aii protests, if any, the City Councii can adopt the resoiution presented to it at this pubiic hearing.

The Association is preparing the ivianagerneni Pian and compieiing their Petition Drive to requesi that the City administer the pubiic notice and formation baiioting. The Association anticipates bringing the item to Council this spring. Should the PBlD formation pass, the Assor.ia_tion will seek to disestab!ish the current for n& year, Pr~nram - Year 2006 and operate as a ?B!D starting January A 1, 2006.

impiemeniation of the proposed assessment formuia for caiendar year 2005 will have no fiscal impact upon the City, other than the administrative cost of administering the collection of the assessments; Administrative casts have been budgeted - in Finance Budget - Acc~unf 327200, Financia! Sep./ices.

Business District Coordinator

Director of Finmce

w!-!E!?EAS, the City of Pasadena is a municipa! corporation which

exercises its governmeniai functions and power, is a cnariered city organized a";e+;"" ++,a ,=,+ ++,a -<f3+a ,if l*.~:;&,rn;2:

"I ," U I \ I U L I I my "I m u " , L I I" nu..- V I .I I" V C U . " V I VUIIIVI I IIU, UI 1.4

W!-!E!?EAS, purs~ant to the Parking and Business !mpmvement

Area Law of i979 (former Streets and Highways Code Sections 36500 et seq.j - - A :- -------a r w K r l r l r lKw tr2 a ior7iioc+ -K AL- c-. .AL I - I * - n..-: ---- A ---- :-A:-- - --- S!!G !!! a-wy- , ,"- ,,'I"-" Q! !!it: .2rd~i!! LSF.~: D U ~ ! ! !t:sz ,u,zzr~r;!a?!~!!, a !!Q! 1-

profit corporation ("Assocjation"), the then-B~ard of Directors of the City of

Pasadena adopied Ordinance No. 6230 on January 4, 1988, es'rabiishing a

business impr.;lbiemefii area within a geographicaiiy defined area in the Cii)i of

Pasadena designated - 2s the "South Lake Business impmvement District of the

City" (the "Districi"j; and IAII ~ r n r A e -=--A:. .- I--. .--. r nnn LL - I -... . . - A ^ - ... L:-L IL- y;;=s=.mm=, t:!!t:C!!\/e ja!!Ga!y 7 , !yyv, ?:!t: ! a W ;!!Ut:! \ni!!!C!! !!It:

South lake Business Improvement District was formed was repealed and in its piace was the Parking Business improvement Area Law of 1989

f ------- :-- ... :AL ---A:-- qecnn -z AL- OL---A- - - A 1 1 : - L .-.L:-L j r g ! ! ! ! I r E!?!! .2ec!!r-1!! S~~GIJIQ L' .2!!ee!z ; ! ~ ! ! ~ a y z I - .VQ~~, \.A/!!!L!!

provided that every business improvement district established prior to January 1,

A nnn IYYU, was deciared vaiid and effective and unaffected by the repeai of that prior

I-... C.. .A ... ̂ ^ L.̂...̂. .^" -^A^ ^. . L : ^ ^ A L ^ ^^.A^:- "^-..:-^-^-A^ ^S A L - --... I -.... - - A !dw, L ~ I wd3, ! !I-IW=V~! , !! !i(12=. ~ I A I - I ~ ~ I ~ ? ?I-I I-.%! La!!! ! ~ I ~ I A ! ! e!! !e! G! ! !e\# !a*, a!!12

WHEREAS, the City Council adopted its Resolution No; 0000

deciariiig its iniei-iiion to esiaGi,si-, tiie Gasis and iev.yiiig --A 4.. I-.,., m-mrr...---rr+- ... :+L.:- +L.- n:..+-:A+ L- D--,~-- V-me qnnc --,,--,:,, a! !l_! LL-J !GVy a.>.>G.>.>!! !G! !?3 W ! L ! !!!! I! !G L J ! > L ! !L-.I !I2! r!lJld! a!!! ! cd! L\>lJ:>, 1-.1>!! !!! !c! !I-.!! !I 1 J

January I. 2005, and ending December 31. 2005, and caused said resolution to L- A..i., -..Li;-L-A. --A ut; u u ~ y puullal leu, dl IU

WHEREAS, in accordance with the law, the City Council on April 4! - . - - - - nnnr -----..-A LL- A --..- I i i - - - - b S-- & L - i==;-&-;-+. 6-- n--a--- vn-- - J ~ I ~ I L f+Ln

L V U ~ appruveu LIE nllliual nepu~ L IUI LIIG U I ~ L I ILL IUI r luy la l l l r Gal L W U J \LI lc

" A --. a n 1 DnnnAP' \ . m n A MI II lllnl !\GIJLJI I I. nl ILJ . . . . . . - - . l--.- I >

WHEREAS: a public hearing concerning the matters set forth in - . . n - - - l . . c ; - - hi, fir-11-~ri ...,, L - i A L.. CL;, r-:C., rqe,.--;i A - A i A - 3 i i 1 7 K -6 iLn C i m n ~~SUIULIUI I IYU. vvvu W d 3 IIGIU u y LI 1 1 3 b l i y UUUI ILII UI I npl II -r, LUVJ , a i LI 16 LIIIIG

*.-.A nlnen n n n n ; f i n A in r n ; A rnenl~mtinn. q n A a! !LA p!ql,c a+JGl,!!!GU !I! 3a!U I G O V I U L I U I I; CIII IU

WHEREAS, at said public hearing all written and oral protests . . ..

- -A- -- 8:i-A ...--- A. . in. L--..A -.,;A---- :-- --A -.-.-,-.-.+ +hn n,-n-nnnA en+:-- ,.,nr ~ r ~ a u e UI 1 1 1 e u welt: u u ~ y I laalu, GVIUGI ILG IUI CII IU ayarlmr LI IG p~upuacu amlul I v v a a

v n e n i ~ n n A n n A n # I 1 feir e n A enmnlntn hnqrinn ~ a i q e nrgntnt-4 qnt-4 h n l A . ant-4 ! G L ~ G ! V ~ L U ~ m.! ILU a. !u!!? !a!! a 1 IU ~ U I I I ~ I G L G I IGUI 11 13 v v a g 31a1 I L ~ U UI IU I luau: UI IU

WHEREAS, all protests, both written and oral, are hereby overruled . .

,,A A , i - C - - m , - - ~ k., Pi+., ~---~.nnii +kn+ +knrn r a r n n nn m a i n r i + n r nrn+nn+ n . r ; + h i n a 1 IU IL wa3 UGLGI I I III IGU u y ~ I L Y UUUI ILII LI lai LI IGI c v v a a I IU I I IajuI ILY ~ I U L C ~ L VVILI III I

the meanin= .J ef Sectims 36524 m d 36525(s) ef the Streets and Highways Cede.

NOW! THEREFORE! BE If RESOLVED by the City Council of the - .. I--;+., -6 i i - - -A-- - -- +fi11-..,n. ~ i y UI raaauw la a3 IUIIUW~.

1. The Annua! Reper? filed ~ i t h the City Clerk, by the Associatien with

respect to Program Year 2005 contains all of the component parts required to be ,A-A Cne+inn 2 C K 2 2 n 6 +hn C C r n n + c q n A i - i i m h \ a , q \ , e r - m A n

I 1 ILIUUGU LJY U G C I L I U I I J U J 3 J UI 11 IG U L 1 G G L 3 a 1 lU I 1 1 9 1 I V V C I Y a VUUG.

2. I A r r n r A i n n l \ / \VVVI UII I ~ I J : thn &I IV Pit\/ V I ~ J P ~ I V V U ~ ~nr i l a w t t hnroh\~ 1 n u # V U J rnnfirmc V V ~ m a a m a n 8 " thn L, B V I A n n 1 .I II IUUI 121

Report to reflect a levy of assessments commensurate with the Association's iironi x n f i n r nnmmnneinn inn, m n n r 4 5 1 ~ i i C 1 1 a b a 1 y c a l LUIIIIIIGI IUI 13 dal 1 u a l y I, LUUJ.

2 V. Rw "! its adeptien ef this resel~tien, the City Ceufici! hereby

establishes the basis and method of ievying the assessments and the adoption of +hie r n e n i ~ ,+inn ehqii n n n e i i i t ,in +ha in\,\, ni qeeneernnnie i . r i i h i n ihn C ~ \ I aih i qicn LI 1 1 3 I GJUIULIUI I 31 l a 1 1 ~ U I I ~ L I L U L G LI IG I G V Y VI ~JJGJJI I IGI ILJ VVILI III I LI IG UVULI I LanG

Business !mprummnt District for Proaram - Year 2005. -.

4. I ne City Councii hereby finds, determines and deciares that Icenccn?nn;c I n ~ r i n r l nn h~~c inoccnc r r r i + h ; n the District pursuant te this

L I Iu u.JQuQ.Jlllul l L Q 1 u v 1 u u VI I UUQII IuQQuQ V V I L I I11 I

reso!ution are !evied on the basis of the estimated benefit to the businesses and

property witnin tne boundaries of the District.

Ayes:

Noes;

Absent:

Ahctain. , ..a".-,, I.

APPROVED AS TO FORM:

WHEREAS, the City of Pasadena is a municipal corporation which

exercises its governmentai functions and power, is a chartered city organized ---I -..:-A:-- ..--I-- A L - I-...- A L - F A - & - -C T\-I:C--.-:-. -.-A 2r1r1 UYIKr l r l r l I l r l r l ~ l 111- law- Ill Ill#- -~lXIl- . I 1, l-.a!!!l-l! !!!a, a!!ld UIIU W,,,".,, ma U I I U W I ....a mu..- -. ... Y -.-I- Y.

WHEREAS, pursuant to the Parking and Business Improvement

Area Law of 1979 (former Streets ana Highways Code Sedions 36500 et sea.) -.__I . =n= !fi response ig 2 request of the South Lake Business Ass.c;lciati.c;ln, a con-

pmfit c~rpnr&inn ("Assor.iationl'!, the then-Board of Directors of the City of A nr.n Pasadena adopied Ordinance NO. 6230 on January 4, -IYUU, estabiishing a

business improvement area within a gecgraphicaiiy &&fled area fho .. a- Cihi - a . J .c;lf

Pasadena designated as the "South Lake Business Impmvemnt District of the ciwry (the <&Districiwj; and

tAwlHFRF&-q pffel-.fjiie I, A n n " A L - I-... . .-Aa- ...I-:-L A L - ". .-..-. .-, Y..YY...Y 3.u..uu. ! yy1-I, !&lW U! !lde! W! !!I;!! J

South Lake Business Improvement District was formed was repealed and in its

piace was enacted the Parking and Business improvement Area Law of 1989 :-- ..AL ---A:-- qernn -s AL- FA---L ---I I 1:-L ...-..- T\-J-\ .-.L:-L ir;r-~!!!!!!e!!t;!!!g w!:!! -~~I;.:!I-I!! 2~21-11-1 I-i! :!!e .2:!=e:= n ~ r i r ~ w a u c i I . r i r i ~ 1 i WIII~-II

.'Y ""- J' "YY,, ..l . . W E l

provided that every business improvement districl-f est&!ished prior Jannaq I, 4 mmm . . .- - ., - -, - .. - ., IYYU, was aeclarea vaiici and effective and unaffectea by the repeai of that prior

I-... L. mL .as-- LA.-.-..-- .-..-A- -. . L : - - A A- --A^:- A- -s A L - I ---I !a=, 99; =as, ! !rdweve!, !!!=Id= =IAI-I;~~? ?I> r;e! :a!!! ! erqp!!e!!~!!:~ U! !!ew !a'.",' z ! ! ~

WHEREAS, the City Council adopted its Resolution No. 8451

deciaring its intention to estabiish the basis and method of ievying assessments - -A A- I -.... -A- ... :&L:.- +L- n : - ~ - : - & c-- n \la-- qnnr ------- :-- a!!~! ?I-I !eyy ==~e>s!!!e!!?> w!?!!!!! ?!!e ;!s?!!~? !I>! T!I-II~!~!!! ~ = a ! :I-11-12, I;~!!!!!!~!!I;!!!II J

January I. 2005; and ending December 31, 2005; and caused said resolution to L- A..i., - . .L i ; -L-A. --A ue UUlY PUUIISl leu, dl lu

Adopted at the regular meeting of the City Council on the 4th day of April, hnnr L U U ~ , by the ioiiowiny vote:

.Ayes:

F\ nnc. , J",,.

Absent:

Abstsin:

P.PP!?O\!ED AS TO FOR??.:

Rebin Harris

Special Counsel

ERWIN E. ADLER 0AP.OLD D. P!EPEP. STEVEN L. DORSEY

W!LL!AW L. STPI4"SZ MITCHELL E. A B B O l l

GREGORY \EI. Z T E D b N l C I C u

ROCHELLE BROWNE

QUlNN M . BARROW CAROL W. LYNCH

GREGORY M . KUNERT THOMAS M. I l M U U ROBERT C. CECCON

iTFV.EN ", fiijFiviANir

GARY E. GANS i O H N i. kAR i i iS KEVIN G. ENNlS

RSB iN D. i iARRiS MICHAEL ESTRADA

, -.,-- - " UY~LI I ILC 3. w r r r c n

STEVEN R. ORR B. i i L D i N Ki i r i

SASKIA T. ASAMURA KAYSER G. SU%E

PETER M. THORSON ,A..CC 8 ..AO"..*.< ,-,.,-a L. ,.,-,.!.,,,-,,

CRAIG A. STEELE T. PETE!? ?!EDCE

TERENCE R. BOGA L!SA B"!"

IANET E. COLESON RO.X.ANNE .M. D!4Z

J I M G. GRAYSON ROY A. CLARKE

WILLIAM P. CURLEY I l l MICHAEL F. YOSHIBA

REGINA N. OANNER MARGUERITE P. B A n E R S B Y

DEBORAH R. HAKMAN D. CRAIG FOX

ROBERT H. PITTMAN - . , , , . - , , -, - - - - - - . - - . T X Y Y I Y " I I C K I L L rn*CLX

TERESA HO-URANO O'iiiii P. GiiOS5

J I M R. U R P I A K ' ..-"',' "

L. " 1 . m ~ u l n L L 1

ALEXANDER ABBE CADXIS A. LC:

MICHAEL P. COYNE D!AUA Y. CHUAUG PATRICK K. BOBKO DA!!EL R , GARC!A

M IGUELS . RAMIREZ EZeA!. RE!uS?E!U

IULIET E. COX ZONAL1 SARKAR !AND!AL

DAVID M . SNOW G. INClFR KHALEA

BRUCE G. MCCARTHY M A ~ H E Y Y a. FINNIGAN

GINETTA L. GlOVlNCO TRISnA O i i l i

CANDICE K. LEE MAKiiEa E, MARiOQ";k

- - - - . . - - - . ". L"""ar.L

MARK L. IAMKEN SAYRE WSAVEX

WILLIAM K. KRAMER BRUCE W. G.ALLO\U.AY

Am."cc ,-..,mu- ..=c..-= "...."". -""", . "..,.= TELEPHONE 7 1 4 . 9 9 0 . 0 9 0 1

355 Souin Grand Avenue, 40th Fioor, ios ~ n g e i e s , Caiiiornia 90071-3101 7 -,-- L--- -.- ,-, 0 . 0 . /-. ---- I r l rp l lu l l r L l j . O L O . 0 4 0 4 r d L 5 l l l l l l ~ L l j . O L O . U U / O

February 23,2005

TO: Robert iviontano Business District Coordinator Economic Development Division City of Pasadena 1 17 E. Colorado Slvd., 2"* F!oc;r n - - - ~ rasauena, CA 9 1 1 69

S U BJ ECT: City of Pasadena

EKC~DSED PLEASE F~NS: 1) Resoiution of the City Council ofihe City of Pasadena Estabiishing the Basis and Method of Levying Assessments and Levying Assessments within the South L.&e Rwiness Ln?.prove111ent District fclr Prcmar?. - Year 2205, and 2) Res~!ution of the City Caunci! of the r - :~- . LILV Llf - p a ~ a d ~ ~ ~ Declzing its klteniion Levy Assessmen:s =itkin :he South Lzke Busiiiess

it-iprovemeni District for Program Year 2 085

FOR YOUR FILES

FOX ?&VIEW AND/OR COMMENTS

IN ACCORDANCE WITH YOUR REQUEST

PLEASE PBVISE ME HOT?J TO REPLY

PLEASE ADVISE ME HOW YOU WISH TO PROCEED

!nc!uded herein:

The --- South Lake Business Improvement - District

Pursuant to Senate Biii i424, t'nis report will address the foilowing - items regardinn - - the activities 2nd fina~cia! s t a t ~ s of the South Lake RIIS~EPSS T A n:--: -A. 1 1 1 1 1 1 1 1 1 \ / t - 1 1 1 ~ 1 1 1 1 # 1 ~ 1 1 1 1 ~ 1 ""y 'v . "Ax"" "A"""'.

.- trrrm,. l n ~ U I ulula

B. Changes - to the existing - assessment fclmuh with suppertinn . A -

C. The Annual Program Outline

Annual Report =

A Boundaries of the District and current assessment f3rmm;ia

D. Annual budget and financial reoort a

Scheduie i

i ~ i i / $2 per j 1 i i / additionai empj

1 Ciassification / Benefit Factor Zone i * / Benefit Factor Zone 2& I t I

j Retail I 8 I 6 1 / Pmfessinnd I 3 I - 7 I

c,,.:,, I I .3Ll v L L L . v I 3 1

A I

-. 1 he annuai assessment for the owner-operated Retaii businesses witnout empioyees is $1 50.00 and $50.00 for owner-operated Professional and Service businesses without employees.

Financial Institutions are assessed at an annual rate of One Thousand Dollars ($1,000) per location.

.h,,Arrni U U U 5 b L .

Assessment exampies using tne formuia:

- rroiessionai: 5 Empioyees

Basic A c c P c c m P n t

x""w"".*.-...

T - 4 , l I n # l n l - - A r rnr rmnni n a n b a a u f i b u 6

Sewice: 35 Empioyees Basic A c c ~ c r m ~ n t

.""W"".A.W...

I Tnta! - - --.- 1 A r rn r rmnni -.,c,b,,anIxbu&

r) r nnn 1 " U""b I

F nno 3 U"".. 1

Exhibit B

1. Street I m m p r ~ ~ e m e n t ~

A. With the Assistance of the City, hired consultants to collaborate x, t r i t l? the S ~ x t h Lake ?BID Steer;,x~ l2 C n m ~ i t t e e tc; m ~ v e ?award

--T- - A n < a rslu cc;nve;sion by lhe year ~uv;i

B. Continued coiiaborative reiations with Rose City High Schooi

~ct ivi t ies and Events

A. Continued work with Tne Pianning - and Development depz-tment en ~ r e ~ ~ s e d A A chmges - to the Central District Specific ni - -- v I .>TI I lull

B. Continued to mon~ior pubilc safety issues; continued to be a partner and resource to the Pasadena Police Department, the

TearI 2nd the I O-Yezr Seategy to End H ~ r ~ e l e s s n e s ~ 1- ,--,.: - 7-,,.- L d l l l ~ d l ~ l l 1 C d l l l

C. Continued to maintain and build professional relat~onsh~ps wlth C i 3 ~ officia!s and staff

ii. Programs and Speciai Projects

III. Pmgams for Members

C3> :> 0' c:, '3 13 C> C> C> C:> I:> 0 C:I (3 13 C) C> C> c:, -4 3 (3- q 0(?> 4r1 C>_ -

TOTAL EXPENSE

St=l!emen! of Finaxla! Posi!inr!

Statemen! ef Ac!ivi!ies

Statemen! ef Net Assets

S!a!ement ef Cash F!m.:s

Nctes !G Finmcia! S!atements

SUPPLEMENTARY !NFO!?MAT!C!N

Endget Cmqariscn (Unsudi!ed)

48 bi. Ei Moiino Avenue, Suite i O i C Pasadena, CA 9 i i O i

CERTIFIED PUBLIC ACCOUNTANT - leiephone [626) 449-6861 Facsimiie (626) 449-8648

We have audited the accompanying siaierneni of financiai position of ihe South l a k e Business Association (a nonprofit organization) as of December 3 i , 2004, and t!w re!ated statements of activities: and cash flows for the year then ended. These finmcial statements are the responsihi!ity nf the Issclciatkm's management. Our resmnsibility is t= express an opi~ien er! these flmncia! siaiemefiis based gfi audit.

in our opinion, the financiai siaieimei?is referred to abo\ie preseiit faiiiy, in aii materiai respects, the financiai position of the South Lake Business Association as of December 31. 2004, and the changes in its net assets and its casn Rows far the year then ended in conformity with generally accepted accounting principles.

?.?embe!: A-e!!car! !nsti!u?e o! Certified ?ub!ic ,Accr\cn!ants Ca!i!omia Socleb; of Certified ?&!ic ,\ccoun!nnts

n r r r r r r n r n - 4 o n n 4 U C L C I V I D C K 3 I , L U U 4

FURNITURE AND EQUIPMENT DECORATIONS STREETSCAPE, PLANTERS, ETC. STREETSCAPE MONUMENTS

LESS: ACCUMULATED DEPRECIATION

TOTAL PROPERTY AND EQUIPMENT, NET

TOTAL ASSETS

LIABILITIES & NET ASSETS CURRENT LlAB3LlTlES

ACCOUNTS PAYABLE DEFERRED PBlD REVENUE-note # 3

TOTAL CURRENT LIABILITIES

NET ASSETS UNRESTRICTED TEMPORARILY RESTRICTED-note # 3

T A T A I PI lnnnn-r n h ~ n n r \ t c k ~ ~ ~c I u IML aurrun I MIYU n C v C I v u C

4 E? C 'J f I J J , U J I

I A ncr I 7 , J U J

I CQ cn-3 I U U , U V L

PROGwiviS FOR MEMBERSHiP ,yEETii\iGS & PRGGwiviS 964 964

NEWSLETTERS AND SPECIAL BULLETINS 1,984 1,984 TOTAL PROGRAMS FOR MEMBERS 2,947 2,947

ACTIVITIES AND EVENTS HOLIDAY OPEN HOUSE 5,297 5,297 SPRING OPEN HOUSE 91 5 91 5 REGIONAL MARKETING & PROMOTION 1,343 1,343

TOTAL ACTIVITIES & EVENTS 7,555 7,555

P.B.I.D. EXPENSES CONSULTANT FEES

TOTAL PBlD EXPENSES 14.965 14.965

TOTAL n!!?ECT EXPEND!T!.!!?ES 52,957 ? 4,965 67,922

- ~ -

- A . ,-.,,a / 1 % law/

n 1-1

- 4 A An- - . (-"- / ! U LIY/ - .,---

CHANGE IN NET ASSETS ADJUSTMENTS TO RECONCILE CHANGE IN NET ASSETS TO NET CASH USED FOR OPERATING ACTIVITIES:

DEPRECIATION LOSS ON DISPOSITION OF ASSETS DECREASE (!l?C!?E.ASE) !N .ASSESSl\nENTS RECE!VABLE DEC!?EASE (!l?C!?EASE) !N P!?EP.A!D ExPEI?SES (DECREASE) !NC!?EASE !N ACCOUNTS PAY.4BLE (DEC!?EASE) !NC!?EME !N ,ACC!?!lED PAY!?OLL .AND

!?EL,ATED T M E S (DECREASE) !NCREASE !N DEFE!?!?ED PB!D !h!COME (DECREASE) !NCRE,ASE !N .4SSESSl\nENT .ADV.A1?CES

NET CASH P!?OV!DED BY OPE!?P..T!NG ACT!V!T!ES:

NET !NC!?EASE!DEC!?EASE) I?! CASH

CASH AT DECEMBER 31; 2004

Revenue Tine Associaiion receives subsianiiaiiy aii of iis revenue irom fees, assessed ana coiieciea by the City of Pasadena, irom iocai business estabiisiirnenis.

Properiy & Equipment Properiy, Piani, and Equipment is siaiea at cost. Depreciation IS computed principally on the stralght lme method over the estimated usetul llves of the assets generally as follows:

Furniture and equipment Flag Poles Decorat~ons Streetscape, planters, etc.

5 - 7 years I U years i u years I U years

Income Taxes The Association is exempt from income taxes under Section 501 (c) (6) of the Internal Revenue Code and therefore has made no provision for Federal income taxes.

Functional Allocation of Expenses The costs of providing the various programs and other activities have been CI 1mmari7ori nn 2 f~ lnrtinnal hacic in tho c ta tom~nt nf arti\~itioc "...,a,, ,-a ,-.,.A .., 8 , - a ,...,.., 8-, ..-"," ., 8 .a ,.. ".-...,a,.., ,. " 8 -".,......-.

BiiSiNESS /iSSOCiATiON OF PASADENA

NOTES TO FINANCIAL STATEMENTS DECEMBER 31,2004

NOTE # 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results cgu!a differ f r ~ m those estimates.

NOTE # 2 GENEPAL & AD?All\!!STRAT!VE EXPENSES

-. I he Association is expioring ihe benefits of changing from a fee based assessmeni district to a Properiy-based Business improvemeni Disirici (PBiDj. T i e purpose of the Association wiii remain, and ii wiii continue to proviae and manage suppiemeniai services and improvements in the district. -. I he City of Pasadena has provided $30,000 to the Association for this purpose, and the Associaiion has expended $i4,964.74 to date. The baiance of funds, $1 5,035.26 is refiecied on the Baiance Sheei as Deferred PBiD income, uniii ihe iunds are expended.

IAUN \ A unnnl l rv .J\>! !! \ ! v ! 8 ! !\-I!\-! \!\-.F\.

CERTiFiED

Page 7

C n l ITU I A K F RI ICINFSS ASSflCIATlflN n F P A S A n F N A "V" I I I LT\,\L- Y. .V . I .bWW r\ww-- .... .-.. -r. . .-. .--.-. .

PdOTES TO FlNANC!AL STATEMENTS DECEMBER 31. 2004

CERTIFIED PUBLIC ACCOUNTANT Page 8

i n i i n i L a i i n h I l n I /

J V n l U IVI. H V I < ~ I L K

EISBUKSEMENTS: BEAUT!F!C,A.?!O?! R W.!b!TEF?P.NCE

STREETSCAPE STREETSCAPE - CAPITAL EXPENDITURES SIDEWALK CLEANING

TOTAL BEAUTIFICATION & MAINTENANCE

ACTIVITIES AND EVENTS HOiiDA'y, OPEN

E nnn .J!vvv 1,984

? 0,000 - 9 " 7 a47

21,000 2,iOO A 4 n n

I , IUU 4 nnn I ,uuu

,glgj 7 7nn

,31-~-1

700 ! ? ,000

5,000 2,800 1,000 2,000

500 13 nnn J,UUU

NET !NCREASE(DECREASE)

qnnr .ZUUd

RUEGET

155,000 8,000 i 5,035 . n nnn I u,uuu

1 ,gg13 A nnn ! , 1 ~ ~ 1 ~ 1 1 ~ 1

190,035

6,000 10,000 33,000 49,000

7 nnn l ;UVU

10,000 ! 7,000

32,000

A n nnn ! I-', 1-11-1 1-1

A ' ) nnn LtL;UUU

28,000 3,iOO A A n n

I , IUU 4 nnn I ,UUU

2 iil-li-l U , V V V ., nnn .1 1 1 1 11 1 -,--- ! ;800

15,500 15,035 3,000 4,000

500 500 500

C) nnn L,UUU

82,035 A n n nor ! yL_I,lJ.>3

SEE ACCOUNTANT'S REPORT.

cEi<TiFiED P"Biic

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