CC - Item 5J - Receive and File the First Quarter Budget Report and Adopt Resolution No. 2025-66 Amending the FY 2025-26 Operating and CIP BudgetsROSEMEAD CITY COUNCIL
STAFF REPORT
TO: THE HONORABLE MAYOR AND CITY COUNCIL
FROM: BEN KIM, CITY MANAGER
DATE: DECEMBER 9, 2025
SUBJECT: RECEIVE AND FILE THE FIRST QUARTER BUDGET REPORT AND
ADOPT RESOLUTION NO. 2025-66 AMENDING THE FY 2025-26
OPERATING AND CIP BUDGETS
SUMMARY
The financial position of the City for the General Fund for FY 2024-25 (unaudited) and
FY 2025-26 through September 30, 2025 (1st Quarter) is summarized in this report. Additionally,
carryover appropriations for the Capital Improvement Program are included. The actions proposed
in this report include the adoption of Resolution No. 2025-66, which amends the FY 2025-26
Operating and Capital Improvement Program budgets. In summary, the data presented has shown
that the actual revenue for the General Fund in FY 2025 exceeded the estimated budget by $2.1
million, while expenditures were $0.7 million lower than the budgeted appropriations. The
General Fund's fund balance underwent a net increase of $2.6 million in Fiscal Year 2025,
increasing from $34.4 million to $37.0 million. In addition, a total of $42.5 million in prior year
appropriations across 16 funds will be carried forward to FY 2025-26 for 30 Capital Improvement
Program (CIP) projects. Additionally, first quarter receipts for FY 2025-26 comprise 7.7 percent
of total revenue and expenditures for the same period total 19.0 percent, representing 25.0 percent
of the year.
DISCUSSION
A) — 2024-25 YEAR END DATA
The fiscal year 2024-25 concluded on June 30, 2025, with the final revenue accruals and expenses
being paid for by the conclusion of the first quarter of the subsequent fiscal year. Although the
subsequent information has not been audited, staff is confident that the audit will yield minimal, if
any, modifications to the data. Rosemead's audit was initiated by an independent audit firm on
October 8, with the expectation of submitting a final report to City staff for review in mid -
December and subsequently to the City Council in January.
AGENDA ITEM 5.J
City Council Meeting — 1" Quarter Budget Report and Related Actions
December 9, 2025
Page 2 of 8
The amended FY 2024-25 budget projected a General Fund deficit of $205,101. Based on year-
end (unaudited) figures shown in Table 1, the deficit turned into a surplus which grew to nearly
$2.56 million, which has been added to fund balance.
Table 1
Total Revenue $ 31,603,514 $ 33,678,635 $ 2,075,121 107%
Total Expense 31,808,615 31,116,459 (692,156) 98%
Net $ (205,101) $ 2,562,176 $ 2,767,277
2024-25 General Ftind Revenue
Revenue with transfers (unaudited) for the fiscal year total $33.68 million, which is $2.1 million
above the budgeted estimate. The increase is primarily driven by higher -than -expected activity in
the Use of Property category where revenues exceeded the budget estimate by $708,000, and in
the Permits category where revenues exceeded the budget estimate by $735,000.
Table 2 provides summary data by category with comparisons to actuals from prior fiscal year.
Table 2
Taxes
$ 23,218,804
$ 23,959,800
$ 24,188,307
$ 228,507
72%
Intergovernmental
584,614
359,700
478,415
118,715
1%
Permits, Licenses, Fees
3,594,146
3,395,900
4,131,334
735,434
12%
Fines & Forfeitures
604,725
624,800
610,521
(14,279)
2%
Use of Property
2,057,296
1,385,800
2,093,943
708,143
6%
Charges for Services
1,224,644
1,355,200
1,630,027
274,827
5%
Miscellaneous
32,528
41,900
65,674
23,774
0%
Transfers In
1,800,000
480,414
480,414
-
1%
Total
$ 33,116,757
$ 31,603,514
$ 33,678,635
$ 2,075,121
100%
City Council Meeting — 111 Quarter Budget Report and Related Actions
December 9, 2025
Page 3 of 8
2024-25 General Fund Expenditures
The final approved Fiscal Year 2024-25 General Fund expenditure was $31.8 million. Final actual
expenditures (unaudited) less transfers totaled $31.1 million, or $0.7 million below the budgeted
amount. As shown in Table 3, the most significant savings occurred in Public Safety, with nearly
$0.5 million in savings primarily related to lower Sheriff contract costs due to deputy vacancies
and other various line item savings. Table 4, which reflects expenditures including transfers to
other funds, shows that departments collectively underspent their appropriations by 2 percent. The
majority of these savings resulted from operations and maintenance expenditures, which were 4
percent, or $0.73 million, below budget.
Legislative
738,799
909,500
959,550
50,050
6%
City Clerk
1,138,785
1,243,600
1,099,411
(144,189)
-12%
Administration
1,308,792
1,692,400
1,708,372
15,972
1%
Finance
1,015,430
1,066,600
1,076,108
9,508
1%
General Services
1,080,380
1,120,300
1,095,480
(24,820)
-2%
Public Safety
12,582,052
13,097,700
12,570,052
(527,648)
-4%
Public Works
4,086,651
4,442,800
4,554,560
111,760
3%
Parks & Recreation
3,967,039
4,553,500
4,626,914
73,414
2%
Community Development
2,103,354
2,617,300
2,576,011
(41,289)
-2%
Capital Proj 60,000 214,915 - (214,915) n/a
Transfers to Other Funds 3,000,000 850,000 850,000 - 0%
General Fund Exp by Dept 31,081,282 31,808,615 31,116,458 (692,157) -2%
Salaries and Benefits 9,319,411 10,939,800 10,978,083 38,283 0%
Operations & Maint 18,711,871 19,968,815 19,238,375 (730,440) -4%
Transfers to Other Funds 3,050,000 900,000 900,000 - 0%
General Fund Exp by Category 31,081,282 31,808,615 31,116,459 (692,156) -2%
Fund Balance
Based on unaudited figures, the Fund Balance of the General Fund will increase from $34.5 million
reported in the City's FY 2024 audit report to $37.0 million. Of this amount, $12.7 million is
committed per City Council Fund Balance Policy.
B) — CIP CARRYOVER NUMBERS
In accordance with the Comprehensive Financial Policies approved along with the adoption of the
annual budget, budgeted amounts for Capital Improvement Program (CIP) budgets carry forward
into the next fiscal year unless the project is complete or otherwise removed from the CIP. These
carryovers represent previously approved, but unspent, appropriations and may carry forward
City Council Meeting — I" Quarter Budget Report and Related Actions
December 9, 2025
Page 4 of 8
multiple years until the project is either complete or the appropriation is released. The Policy
further stipulates that the carry forward budgeted amounts were to be reported to the City Council
as part of the 15t Quarter Budget Report. With the annual audit nearly complete, the amounts
remaining for current projects have been identified and presented herein. The appropriations to be
carried forward are for 30 CIP projects, accounted for within 16 funds, for a total continuing
obligation of $42.5 million. The following charts show both the continuing obligation by project
name and funding source of the continuing projects.
Table 5 — CIP Projects
PROJ # DESCRIPTION
FUND # FUND NAME
CARRYOVER
21030 Walnut Grose Ave Resurfacing (Phase 11)
226 Measure M
674,000.00
21030 Walnut Grove Ave Resurfacing (Phase 11)
201 Gas Tax
769,500.00
21030 Walnut Grove Ave Resurfacing (Phase 11)
220 Prop C
1,600,000.00
21031 Valley Blvd Resurfacing Project (Phase I & 11)
201 Gas Tax
547,000.00
21031 Valley Blvd Resurfacing Project (Phase I & 11)
202 RMRA
886,800.00
21031 Valley Blvd Resurfacing Project (Phase I & 11)
220 Prop C
675,000.00
21031 Valley Blvd Resurfacing Project (Phase I & 11)
225 Measure R
768,419.00
21031 Valley Blvd Resurfacing Project (Phase I & 11)
226 Measure M
594,200.00
31020 Public Safety Center Upgrades (Desgin only)
101 General Fund
14,915.23
31023 Garvey Park Main Office Renovation
101 General Fund
200,000.00
31023 Garvey Park Main Office Renovation
510 Public Facilities
81,510.25
31026 City Hall Elevator and ADA Improvements
510 Public Facilities
818,074.53
31027 City Hall Interior Renovations
228 SLFRF - Categorical
1,210,673.87
31027 City Hall Interior Renovations
252 DIF - Gen't Govt
57,893.77
31027 City Hall Interior Renovations
510 Public Facilities
2,699.50
31028 Public Safety Center Upgrades (Construction)
228 SLRF Categorical
674,631.47
31028 Public Safety Center Upgrades (Construction)
251 DIF - Public Safety
4,927.00
31028 Public Safety Center Upgrades (Construction)
510 Public Facilities
264,024.32
31029 Acoustic Panels (RCRC & Garvey Gym)
253 DIF - Parks
75,000.00
31030 Council Chamber/Conference Room Audiovisual Upgrade
510 Public Facilities
69,918.50
31032 Renovation of Garvey Avenue Community Centet
510 Public Facilities
1,124,100.00
31033 Roof and HVAC Replacement at various City Facilities Project
232 Grants
113,000.00
31033 Roof and HVAC Replacement at various City Facilities Project
510 Public Facilities
258,026.00
31034 Parks & Facilities Master Plan
245 Street Light District
425,000.00
31035 Wireless Broadband/Parks & City Facilities
510 Public Facilities
290,000.00
31037 Record Database Management Plan GIS
505 Technology Replacement
330,000.00
39002 Picnic Shelter Roof Replacement
245 Street Light District
87,673.50
39004 Lighting Upgrade at Jess Gonzalez Sports Complex
245 Street Light District
99,007.24
41013 Protective Barriers for Unattended Spaces
510 Public Facilities
263,549.25
41023 Playground Equipment Repl (Garvey & Rosemead Parks)
245 Street Light District
363,727.50
41027 Irrigation System Master Plan
245 Street Light District
505,000.00
41029 Bridge Repair and Preventative Maintenance - Mission Drive
226 Measure M
119,851.84
42000 Garvey Park Parking Lot Reconstruction
510 Public Facilities
400,000.00
42001 Rosemead Park Parking Lots (2) Resurfacing
510 Public Facilities
305,000.00
43009 Walnut Grove Street Light Installation
225 Measure R
526,279.73
49014 Walnut Grove Ave/1-10 Freeway Ramp Improvements
229 Measure R Capital
5,986,396.25
49015 Adaptive Traffic Responsive Control System
229 Measure R Capital
8,942,159.50
49016 Traffic Signal Arterial Improvements
229 Measure R Capital
5,972,410.75
49017 Rosemead Blvd/1-10 Freeway Ramp Improvements
229 Measure R Capital
5,312,325.18
49017 Rosemead Blvd/1-10 Freeway Ramp Improvements
250 DIF-Traffic
50,000.00
49019 Rosemead Park Walking Trail
245 Street Light District
484,876.00
49020 Zapopan Park Walking Trail
245 Street Light District
350,782.25
49021 Garvey Park Splash Zone Imrpovements
245 Street Light District
220,000.00
Totals - Carryover Appropriations
42,518,352.43
City Council Meeting — I" Quarter Budget Report and Related Actions
December 9, 2025
Page 5 of 8
Table 6 — Funding Obligations by Funding Source
Fund # Fund Name
Carryover
101 General Fund
214,915.23
201 Gas Tax
1, 316, 500.00
202 RM RA
886, 800.00
220 Prop C
2, 275, 000.00
225 Measure R
1,294,698.73
226 Measure M
1,388,051.84
228 SLFRF - Categorical
1,885,305.34
229 Measure R Capital
26,213,291.68
232 Grants
113,000.00
245 Street Light District
2,536,066.49
250 DIF-Traffic
50,000.00
251 DIF - Public Safety
4,927.00
252 DIF - Gen't Govt
57,893.77
253 DIF - Parks
75,000.00
505 Technology Replacement
330,000.00
510 Public Facilities
3,876,902.35
Total Fund Obligations
42,518,352.43
Q — FY2025-26 FIRST QUARTER REVIEW
As adopted on June 10, 2025, as shown in Table 7, General Fund budgeted revenue was estimated
at $32.2 million funding, appropriations of $32.2 million. As of September 30, 2025, only 7.4%
of anticipated revenue has been received while 18.6% of appropriation have been expended.
Table 7
Total Revenue $ 32,188,700 $ 2,395,527 7.4%
Total Expense 32,183,280 5,998,853 18.6%
Net $ 5,420 $ (3,603,326)
First Ottarter Revenue
With only 25% of the year completed, 7.4% of estimated revenues have been collected which is
slightly higher than a year ago. Based on final FY 2025 numbers, staff anticipates General Fund
revenue will meet budgeted estimates. Table 8 presents revenue by category with comparisons of
receipts as of September 30 of years 2025, and 2026. As shown, receipts are higher than FY 2025.
City Council Meeting — 15Y Quarter Budget Report and Related Actions
December 9, 2025
Page 6 of 8
Table 8
Taxes
23,959,800
510,869
2.1%
22,226,500
518,213
2.3%
Intergovernmental
359,700
70,833
19.7%
359,700
62,967
17.5%
Permits, Licenses, Fees
3,395,900
1,062,721
31.3%
5,129,200
1,215,398
23.7%
Fines & Forfeitures
624,800
168,344
26.9%
624,800
194,484
31.1%
Use of Property
1,385,800
68,194
4.9%
1,385,800
75,257
5.4%
Charges for Services
1,355,200
293,896
21.7%
1,355,200
314,947
23.2%
Miscellaneous
41,900
26,080
62.2%
41,900
14,261
34.0%
Transfer In
480,414
-
0.0%
-
-
0.0%
Total
31.603.514
2.200.937
7.0%
31,123,100
2.395,527
7.7%
The City receives 84% of total General Fund revenue from just six funding sources as shown in
Table 9. The largest source is property tax and properly tax in lieu of VLF. Property Tax and
Property Tax in Lieu of VLF provide 40% of General Fund but very little revenue in the first
quarter.
Property Tax — Under Proposition 13, the assessed valuation of properties held by the same owner
from year-to-year is adjusted each year by the lesser of 2.0% or the percent change in the California
Consumer Price Index. When a property is sold, the properly is reassessed to market value which,
in turn, increases property tax revenue to the City. As reflected in Table 9, Property tax revenue
does not flow in 12 equal installments; instead about 40% is received in mid -December and another
large portion is received in May with smaller portions provided in the months January through
June. As shown in the table, property taxes are above last year during the same period which is
mostly attributable to an increase in unsecured property tax revenue. Taxable property that is not
adequately secured by a lien to guarantee tax payment is referred to as unsecured property.
The items that are evaluated and gathered in the unsecured roll encompass various assets such as
boats and jet skis, airplanes, enhancements made to properties owned by others, and business
assets, among others.
Property Tax in Lieu of VLF — Prior to 2004, cities received a portion of vehicle license fees paid
by vehicle owners to the State of California. In 2004, the Legislature reduced the VLF rate and
`swapped' the City portion, dollar for dollar with property tax. Unlike the VLF, this In -Lieu
revenue grows based on assessed property value rather than vehicle value. This source now
provides nearly double the amount the City receives for secured and unsecured property tax.
However, payments of the In -Lieu revenue are made in two equal payments in January and June.
Sales Tax — Sales tax is another significant source of revenue for the City and provides over 22%
of total General Fund revenue. As of September 30, the City has received one payment credited
to the fiscal year. Payments received in July and August are accrued to the prior fiscal year each
year. As shown in the table, receipts for the first quarter are slightly above first quarter FY 2025.
Consequently, we anticipate that the sales tax collections for FY 2025 will meet the projected
estimate by the conclusion of the fiscal year.
City Council Meeting — I` Quarter Budget Report and Related Actions
December 9, 2025
Page 7 of 8
Transient Occupancy Tax — The first quarter TOT revenues are not collected until October;
therefore, the zero -revenue reflected below is expected.
Franchise Fees — Franchise Fees are another top revenue estimated at $1.9 million for the year.
The majority of the revenue within this category is paid annually during the third quarter of the
fiscal year. Based on final FY 2025 numbers, the budgeted estimate is achievable.
Building / Plan Check Fees — Activity in this area continue to grow with current receipts at 40%
of the budgeted estimate at 25% of the year.
Table 9
Property Tax
4,024,100
35,298
0.9%
4,046,200
21,220
0.5%
Property Taxin Lieu of VLF
8,506,900
-
0.0%
8,804,600
-
0.0%
Sales Tax
7,333,200
475,571
6.5%
7,198,500
496,993
6.9%
TOT
2,361,000
-
0.0%
2,361,000
-
0.0%
Franchise Fees
1,733,300
-
0.0%
1,906,600
-
0.0%
Bldg/Plan Check
2,700,000
886,879
32.8%
2,700,000
1,087,717
40.3%
All Other
4,945,014
803,189
16.2%
5,171,800
789,597
15.3%
Total
31,603,514
2,200,937
7.0%
32,188,700
2,395,527
7.4%
First Quarter Expenditures
At 19% expended at 25% of the fiscal year, General Fund expenditures are well within budget
parameters. As shown in Table 10, all departments are around the 25% mark with the exception
of the City Clerk's Office which is 75% expended at this time. This anomaly within the City
Clerk's Office is caused by the payment of large insurance premiums to CJPIA due in July. On
the category basis, personnel related costs are 26% expended on September 30, and operational
costs are 14% expended.
City Council Meeting — I" Quarter Budget Report and Related Actions
December 9, 2025
Page 8 of 8
Table 10
Legislative
909,500
165,750
18%
961,700
179,065
19%
City Clerk
1,243,600
1,014,842
82%
1,259,200
949,516
75%
Administration
1,692,400
331,059
20%
1,664,400
393,586
24%
Finance
1,066,600
289,866
279/o
1,026,000
242,761
24%
General Services
1,120,300
247,576
22%
1,046,200
226,927
22%
Public Safety
13,097,700
1,386,652
11%
13,858,900
1,557,917
11%
Public Works
4,442,800
936,436
21%
4,204,200
798,549
19%
Parks and Recreation
4,553,500
1,204,524
26%
5,007,180
1,343,416
27%
Community Development
2,617,300
398,948
15%
3,095,500
307,115
10%
Non -Departmental
350,000
-
0%
-
-
n/a
General Fund Exp by Dept
31,093,700
5,975,653
19%
32,123,280
5,998,853
19%
STAFF RECOMMENDATION
Staff recommends that the City Council take the following actions:
1. Receive and file the 1st Quarter Budget Report;
2. Adopt Resolution No. 2025-66, amending the FY 2025-26 Operating and Capital
Improvement Program budgets.
FISCAL IMPACT
Budgets for existing Capital Improvement Program (CIP) being carried forward to FY 2025-26
have been authorized in prior years and carry an obligation of fund balance within the Annual
Comprehensive Financial Report.
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
Prepared by:
Bryan Chua
Assistant City Manager/Finance Director
Attachment A: Resolution No. 2025-66 Amending the FY 2025-26 Operating and CIP Budgets
Attachment A
Resolution No. 2025-66
RESOLUTION NO.2025-66
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ROSEMEAD, CALIFORNIA, AMENDING THE FY 2025-26
OPERATING BUDGET AND CAPITAL IMPROVEMENT
PROGRAM BUDGETS
WHEREAS, a fiscal review is a prudent method to ensure that the City maintains a healthy
financial structure; and
WHEREAS, the City routinely adjusts fiscal year revenue estimates and appropriations
throughout the fiscal year; and
WHEREAS, the City Council adopted the FY 2025-26 Operating Budget and CIP budgets
on June 27, 2024; and
WHEREAS, the revised appropriation constitutes an update to the Fiscal Year 2025-26
budget approved pursuant to Resolution No. 2025-32, and Resolution No. 2025-33.
WHEREAS, the City Council has reviewed the 1st Quarter Budget Report including
unaudited data for FY 2024-25.
NOW THEREFORE, BE IT RESOLVED, by the City Council of the City of Rosemead,
California, as follows:
SECTION 1. That the City Council authorizes the carry forward of appropriations for
projects approved in prior fiscal years but have remaining project funds as follows:
Fund # Fund Name
Carryover
101 General Fund
214,915.23
201 Gas Tax
1, 316, 500.00
202 RM RA
886, 800.00
220 Prop C
2,275,000.00
225 Measure R
1,294,698.73
226 Measure M
1, 388, 051.84
228 SLFRF - Categorical
1,885,305.34
229 Measure R Capital
26,213,291.68
232 Grants
113,000.00
245 Street Light District
2,536,066.49
250 DIF-Traffic
50,000.00
251 DIF - Public Safety
4,927.00
252 DIF - Gen't Govt
57,893.77
253 DIF - Parks
75,000.00
505 Technology Replacement
330,000.00
510 Public Facilities
3,876,902.35
Total Fund Obligations
42,518,352.43
SECTION 2. The City Clerk shall certify to the passage and adoption of this resolution,
and it shall thereupon be in full force and effect.
PASSED, APPROVED, AND ADOPTED this 9th day of December, 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. 2025-66, was duly adopted
by the City Council of the City of Rosemead, California, at a regular meeting thereof held on
the 9th day of December, 2025, by the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
Ericka Hernandez, City Clerk