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CC - Item 6E - Adoption of Resolutions Approving Rosemead's FY 2025-26 Operating, CIP & RHDC Budget, Establishing the FY 2025-26 Appropriations Limit, & Amending the City's FY 2024-25 BudgetROSEMEAD CITY COUNCIL STAFF REPORT TO: THE HONORABLE MAYOR AND CITY COUNCIL FROM: BEN KIM, CITY MANAGER*---'� DATE: JUNE 10, 2025 SUBJECT: ADOPTION OF RESOLUTIONS APPROVING THE CITY OF ROSEMEAD'S FY 2025-26 OPERATING BUDGET, CAPITAL IMPROVEMENT PROGRAM BUDGET, ESTABLISHING THE FY 2025- 26 APPROPRIATIONS LIMIT, APPROVING THE ROSEMEAD HOUSING DEVELOPMENT CORPORATION FY 2025-26 ANNUAL BUDGET, AND AMENDING THE CITY OF ROSEMEAD'S FY 2024-25 BUDGET SUMMARY The City Council will consider the adoption of the City's Fiscal Year (FY) 2025-26 Operating and Capital Improvement Budget, which provides for total appropriations of $49,346,480. The General Fund operating budget is $32,123,280. The Capital Improvement Program budget is $7,153,200 and includes funding for one new project, additional funding for existing projects, and funding for annual projects. The proposed budget for the Rosemead Housing Development Corporation (RHDC) is $1,042,300. DISCUSSION GENERAL FUND - The proposed operating budget is balanced with a surplus of $5,420. The significant changes are summarized below: 1. LASD Contract - The cost of Sheriffs contract increased by 4.5%, plus an increase in liability expense from 12.5% to 13.0%. Total contract cost is expected to increase from $10,608,300 to $11,044,000, a difference of $435,700. 2. Update the City's General Plan to ensure consistency with current State legislation and statutory changes over the coming years. This update is necessary to maintain legal compliance. The projected cost for the General Plan update is $350,000. 3. The Parks and Recreation Department is requesting a budget increase of $230,000 to support enhancements that will directly benefit the community. This includes $30,000 for a drone show at the popular Fall Fiesta event, offering a unique and memorable experience AGENDA ITEM 6.E City Council Meeting June 10, 2025 Page 2 of 3 for attendees. An additional $100,000 is proposed for a new holiday tree and updated decorations to create a more vibrant and welcoming atmosphere during the winter season. Finally, $100,000 is needed to refurbish and repaint the aquatics center slide, ensuring it remains safe, attractive, and enjoyable for residents and visitors alike. These investments aim to improve community events and facilities, enhancing the overall quality of life in our city. STAFFING — The proposed Fiscal Year 2025-26 budget includes a citywide staffing level of 67 full- time positions, a reduction of six from the 73 positions adopted in FY 2024-25. This includes the deletion of two (2) Building Inspector positions, one (1) Building Official, two (2) Permit Technicians, and one (1) Plan Checker. These changes reflect the City's continued reliance on third -party providers for building and permitting services, a model that is already in place. Maintaining and formalizing this approach allows the City to scale services with construction demand, reduce administrative overhead, and access certified professionals without the need for onboarding or training. This recommendation is budget -neutral, as the costs associated with third - party services are offset by savings from the elimination of the full-time positions. CAPITAL IMPROVEMENT PROJECTS — The new project, Citywide Traffic Signal Improvement, aims to enhance safety at 40 intersections. Improvements include adding retro-reflective borders to traffic signals for better visibility, upgrading pedestrian countdown timers, and adjusting signal timing to give pedestrians a head start before vehicle turns. The project cost is $2,858,200, with $2,572,380 funded by grants and $285,820 from Measure M. GENERAL FUND BALANCE POLICY — For FY 2025-26, General Fund revenues are projected at $32,188,700, with expenditures totaling $32,123,280. The projected year-end fund balance is $35.8 million, representing 111 % of operating expenses. The City also continues to meet its policy of maintaining 40% of operating expenses as Committed Fund Balance. ROSEMEAD HOUSING DEVELOPMENT CORPORATION — The City, through the Rosemead Housing Development Corporation (RHDC) owns and operates two Senior Housing facilities. The funding source of the RHDC is a combination of the rents collected from tenants and contributions from the Successor Agency to the former Community Development Commission to cover any operating shortfalls and lease obligations to the City. APPROPRIATIONS LIMIT — Article XIII-B of the California Constitution (Proposition 4 as modified by Proposition 111) limits the amount of tax revenue that can be appropriated by State and local governments in a fiscal year. The City's limit for 2025-26 is $67,909,949 with appropriations subject to the limit at $25,058,968. Therefore, the City of Rosemead is $42,850,981 below its appropriation limit. City Council Meeting June 10, 2025 Page 3 of 3 STAFF RECOMMENDATION It is recommended that the City Council take the following actions: 1. Adopt Resolution No. 2025-32 and 2025-33 approving the City of Rosemead's Operating and Capital Improvement Program budgets for the 2025-26 Fiscal Year. 2. Adopt Resolution No. 2025-34 approving the appropriations limit by resolution as required by Section 7910 of the Government Code of the State of California. 3. Adopt Resolution No. 2025-01 approving the Housing Development Corporation's Operating and Capital Improvement Budget for the 2025-26 Fiscal Year. FISCAL IMPACT The General Fund is balanced based on revenue estimates. All other funds are balanced based on revenue estimates and the use of available fund balance. STRATEGIC PLAN IMPACT Rosemead will maintain fiscal solvency by implementing and following sound financial policies, including maintaining appropriate reserve levels. ENVIRONMENTAL REVIEW This item is not defined as a project under the California Environmental Quality Act (CEQA); therefore, the proposed plan is not subject to CEQA. PUBLIC NOTICE PROCESS This item has been noticed through the regular agenda notification process. Prepared by: A*� (y. Bifan Chua Assistant City Manager/Finance Director Attachments: A — Resolution No. 2025-32—Adopting the City's FY 2025-26 Operating Budget Exhibit A — Schedule of Appropriations B — Resolution No. 2025-33 — Adopting the City's FY 2025-26 CIP Budget C — Resolution No. 2025-34 — Adopting the FY 2025-26 Appropriations Limit Exhibit A — Appropriations Limit D — Resolution No. 2025-01 of the RHDC — Adopting the FY 2025-26 Budget E — Fiscal Year 2025-26 - City of Rosemead - Proposed Annual Budget Attachment A Resolution No. 2025-32 Operating Budget FY 25-26 RESOLUTION NO.2024-32 RESOLUTION OF THE COUNCIL OF THE CITY OF ROSEMEAD ADOPTING THE CITY'S OPERATING BUDGET, AUTHORIZED STAFFING, AND FINANCIAL POLICIES FOR THE 2025-26 FISCAL YEAR AND UPDATING THE LISTING OF SALARY AND JOB CLASSIFICATIONS FOR FULL-TIME POSITIONS WHEREAS, appropriations are the legal authority for a City to spend its funds; and NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ROSEMEAD, DOES HEREBY RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS: Section 1. That certain document entitled "City of Rosemead Annual Budget for Fiscal Year 2025-26", a copy of which is on file in the office of the City Clerk and on the City's Web Site, which may hereafter be amended by the Council, is hereby approved as the operating budget for the City of Rosemead for the Fiscal Year 2025-26. Section 2. The proposed operating budget for the City of Rosemead is hereby approved and adopted in the amount of $42,193,280. Appropriations for the General Fund are approved at the department level, with all other funds approved at the fund level. The approved appropriations for all operating funds are contained in Exhibit A attached hereto, and incorporated herein by this reference. Section 3. The Director of Finance, with the approval of the City Manager, is hereby authorized to transfer appropriations as needed from savings available in any department/object account in the budget to other accounts within the same fund to meet overall budget requirements provided the fund is within the approved budget by the City Council. Section 4. That any subsequent Council action prior to June 30, 2025 that has the effect of amending the approved FY 2025-26 Operating Budget will be reflected in the final FY 2025-26 budget document without additional or separate Council action. Section 5. In the case of fee -based programs, if the revenues for such programs exceed the amount budgeted, the City Council hereby authorizes the Finance Director, upon approval of the City Manager, to allow program expenditures to exceed appropriations of said program in the same amount of the increased revenue until amended by the City Council. A semi-annual report shall be made to the Council describing each such action with revisions to the revenue estimate and corresponding appropriation made by a resolution of the City Council. Section 6. Pursuant to the provisions of Section 37208 of the California Government Code, the Council, payroll checks and checks drawn in payment of demands approved by the Finance Director as conforming to the budget as approved by Council resolution, need not be audited by the legislative body prior to payment. Section 7. The City Council hereby adopts the Comprehensive Financial Policies of the City for Fiscal Year 2025-26, as included in the FY 2025-26 City of Rosemead Proposed Budget and without modification, in the FY 2025-26 Adopted Budget as part of this resolution. Section 9. The City Clerk shall certify to the adoption of this resolution and hereafter the same shall be in full force and effect. PASSED, APPROVED, AND ADOPTED this loth day of June, 2025. Margaret Clark, Mayor APPROVED AS TO FORM: ATTEST: Rachel Richman, City Attorney Ericka Hernandez, City Clerk STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) CITY OF ROSEMEAD ) I, Ericka Hernandez, City Clerk of the City Council of the City of Rosemead, California, do hereby certify that the foregoing City Council Resolution No. 2025-32 was duly adopted by the City Council of the City of Rosemead, California, at a regular meeting thereof held on the 101h day of June, 2025, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: Ericka Hernandez, City Clerk Exhibit A City of Rosemead FY 2025-26 Adopted Operating Budget Fund Name FY 2026 Adopted General Fund by Department Legi s I ati ve 961,700 City Clerk 1,259,200 Administration 1,664,400 Finance 1,026,000 General Services 1,046,200 Public Safety 13,858,900 Public Works 4,204,200 Parks & Recreation 5,007,180 Community Development 3,095,500 Non -departmental - Total General Fund 32,123,280 Special Revenue Funds Gas Tax 2,278,900 RMRA SB1 38,900 Proposition A 1,265,100 Proposition C 1,073,200 Measure R 295,500 Measure M 46,900 American Rescue Plan 523,000 Air Quality Management District 235,000 Clean Water 338,400 Grant Fund 280,000 SB 1383 267,500 Street Lighting District 1,508,400 CDBG 879,000 HOME 955,200 Total Special Revenue Funds 9,985,000 Internal Service Fund Technology Replacement 85,000 Total Operating Budget 42,193,280 Attachment B Resolution No. 2025-33 CIP Budget FY 25-26 RESOLUTION NO.2025-33 RESOLUTION OF THE COUNCIL OF THE CITY OF ROSEMEAD ADOPTING THE CITY'S CAPITAL IMPROVEMENT PROGRAM (CIP) BUDGET FOR THE 2025-26 FISCAL YEAR WHEREAS, appropriations are the legal authority for a City to spend its funds; and NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ROSEMEAD, DOES HEREBY RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS: Section 1. The proposed FY 2025-26 Capital Improvement Program budget for the City of Rosemead is hereby approved and adopted in the amount of $7,153,200. Section 2. Any changes to project budgets, including funding sources, within the CIP must be authorized by City Council resolution. Section 3. Project balances remaining at June 30, 2025 for confirmed projects will be carried forward to FY 2025-26. The Finance Director is authorized to bring forward appropriate balances to be reaffirmed by City Council resolution with the first quarter report. Section 4. That any subsequent Council action prior to June 30, 2025 that has the effect of amending the approved FY 2025-26 Capital Improvement Program Budget will be reflected in the final FY 2025-26 budget document without additional or separate Council action. Section 5. The City Clerk shall certify to the adoption of this resolution and hereafter the same shall be in full force and effect. PASSED, APPROVED, AND ADOPTED this loth day of June 2025. Margaret Clark, Mayor APPROVED AS TO FORM: ATTEST: Rachel Richman, City Attorney Ericka Hernandez, City Clerk STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES) § CITY OF ROSEMEAD ) I, Ericka Hernandez, City Clerk of the City Council of the City of Rosemead, California, do hereby certify that the foregoing City Council Resolution No. 2025-33 was duly adopted by the City Council of the City of Rosemead, California, at a regular meeting thereof held on the loth day of June, 2025, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: Ericka Hernandez, City Clerk Attachment C Resolution No. 2025-34 Appropriation Limit FY 25-26 RESOLUTION NO.2025-34 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD, CALIFORNIA, ADOPTING AN APPROPRIATIONS LIMIT FOR THE FISCAL YEAR 2025-26 WHEREAS, Article XIII-B of the Constitution of the State of California provides that total annual appropriations subject to limitation of the City shall not exceed the appropriations limit of the City for the prior year as adjusted for annual adjustment factors; and WHEREAS, Section 7910 of the Government code of the State of California directs the governing body of each local jurisdiction to establish its appropriations limit by resolution each year; and WHEREAS, the governing body of each local jurisdiction must select the annual adjustment factors to be used in determining the appropriations limit pursuant to Article XIIIB of the State Constitution. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ROSEMEAD, DOES HEREBY RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS: SECTION 1. The City Council hereby elects the change in the California per capita personal income as the cost -of -living adjustment factor and the annual population change for the City of Rosemead as the population adjustment factor. SECTION 2. The appropriations limit fiscal year 2025-26 is hereby set at $67,909,949, as detailed in the attached Exhibit A, which is hereby made a part of this Resolution. SECTION 3. The City reserves the right to adjust or amend the appropriations limit based upon the use of alternative growth factors as authorized by Proposition 111 if such changes or revisions would result in a more advantageous appropriations limit, now or in the future. SECTION 4. The City Clerk shall certify to the adoption of this resolution and hereafter the same shall be in full force and effect. PASSED, APPROVED, AND ADOPTED this loth day of June, 2025. Margaret Clark, Mayor APPROVED AS TO FORM: ATTEST: Rachel Richman, City Attorney Ericka Hernandez, City Clerk STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES) § CITY OF ROSEMEAD ) I, Ericka Hernandez, City Clerk of the City Council of the City of Rosemead, California, do hereby certify that the foregoing City Council Resolution No. 2025-34 was duly adopted by the City Council of the City of Rosemead, California, at a special meeting thereof held on the 1 Oth day of June, 2025, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: Ericka Hernandez, City Clerk Exhibit A City of Rosemead Appropriations Limit FY 2025-26 a) Prior Year Appropriations Limit b) Adjustment Factors 1) Population Change* 2) Cost of Living ** 3) Combined Adjustment Factor c) Adjusted Limit d) Alterations e) Appropriations Limit - Current Year Percent Ratio 0.41% 6.44% 1.0041 1.0644 APPROPRIATIONS SUBJECT TO LIMITATION a) Proceeds of Taxes b) Exclusions c) Appropriation Subject to Limitation d) Appropriation Limit - Current Year e) Under (Over) Limit Amount $ 63,540,638 1.0688 $ 67,909,949 $ 67,909,949 $ 25,058,968 9 $ 25,058,968 $ 67,909,949 $ 42,850,981 Sources: * Annual Percent Change in Population City of Rosemead - Provided by CA Dept of Finance ** Price Factor: Per Capita Personal Income - Provided by CA Dept of Finance Computations based on the 2025-26 Adopted Budget Article XIII-B of the California Constitution (Proposition 4 as modified by Proposition 111) limits the amount of tax revenue that can be appropriated by State and local governments in a fiscal year. A City with appropriations greater than the limit must either refund the excess tax proceeds to the taxpayers or obtain their approval to raise the limit. Adoption of a Resolution is required annually to establish the limit. The calculation is based on the prior year's limit multiplied by a factor of the change in City or County population and the percent increase in per capita personal income or non-residential assessed valuation. Both population and per capital income data is supplied by the State of California Department of Finance. The City's limit for 2025-26 is $67,909,949 with appropriations subject to the limit at $25,058,968. Therefore, the City of Rosemead is $42,850,981 below its appropriation limit. Attachment D Rosemead Housing Development Corporation Resolution No. 2025-01 Budget FY 25-26 Attachment D RESOLUTION NO. 2025-01 RHDC A RESOLUTION OF THE ROSEMEAD HOUSING DEVELOPMENT CORPORATION ADOPTING THE ANNUAL BUDGET FOR FISCAL YEAR 2025-26 WHEREAS, a proposed annual budget for the Rosemead Housing Development Corporation for the Fiscal Year commencing July 1, 2025 and ending June 30, 2026 was submitted to the Housing Development Corporation Board of Directors for its review and consideration and the proposed annual budget is on file in the Corporation Secretary's office. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ROSEMEAD SITTING AS THE ROSEMEAD HOUSING DEVELOPMENT CORPORATION COMMISSION, DOES HEREBY RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS: SECTION 1. The 2025-26 Annual Budget for the Rosemead Housing Development Corporation is hereby adopted in the amount of $1,042,300. SECTION 2. The Corporation Secretary shall certify to the adoption of this resolution and hereafter the same shall be in full force and effect. PASSED, APPROVED, AND ADOPTED this 10th day of June, 2025. APPROVED AS TO FORM: Margaret Clark, Corporation President ATTEST: Rachel Richman, Corporation Attorney Ericka Hernandez, Corporation Secretary STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES) § CITY OF ROSEMEAD ) I, Ericka Hernandez, Corporation Secretary to the Rosemead Housing Development Corporation of the City of Rosemead, California, do hereby certify that the foregoing Corporation Resolution No. 2025-01 RHDC, was duly adopted by the Board of the Rosemead Housing Development Corporation, at a special meeting thereof held on the 1 Oth day of June, 2025, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: Ericka Hernandez, Corporation Secretary