CC - Item 4C - Acceptance of Annual Audit Reports for the Fiscal Year Ended June 30, 2023ROSEMEAD CITY COUNCIL
STAFF REPORT
TO: THE HONORABLE MAYOR AND CITY COUNCIL AND THE CITY
COUNCIL SITTING AS THE BOARD OF DIRECTORS FOR THE ROSEMEAD
HOUSING DEVELOPMENT CORPORATION
FROM: BEN KIM, CITY MANAGER
DATE: JANUARY 23, 2024
SUBJECT: ACCEPTANCE OF ANNUAL AUDIT REPORTS FOR THE FISCAL YEAR
ENDED JUNE 30, 2023
SUMMARY
The certified public accounting firm of Lance, Soll & Lunghard, LLP (LSL) was engaged by the
City Council to perform an audit of the financial statements and perform compliance testing of the
City of Rosemead of the fiscal year ended June 30, 2023. LSL conducted the audit in accordance
with generally accepted auditing standards and issued an unmodified (clean) audit opinion on the
financial statements. This report provides a summary of the audit report to be used as a companion
to the published Annual Comprehensive Financial Report (ACFR). Also included are the
Rosemead Housing Development Corporation Financial and Compliance Report, and other
documents related to the financial audit.
DISCUSSION
Generally accepted accounting principles (GAAP) provide the criteria for judging whether a
financial report is fairly presented. In defining the minimum standard of acceptable basic financial
reporting for state and local governments, GAAP mandate a complete set of basic financial
statements, including accompanying note disclosures, as well as the presentation of certain
required supplemental information. GAAP encourages government agencies to present this
information within the Annual Comprehensive Financial Report (ACFR). The ACFR is a more
detailed financial report beyond just the basic financial statements and contains three basic
sections:
• The Introductory Section — provides general information of the City which includes the
letter of transmittal, list of principal officials, and a citywide organizational chart.
• The Financial Section — provides the overall financial information of the City which
includes the independent auditor's report, management's discussion and analysis
AGENDA ITEM 4.0
City Council Meeting — Acceptance of Annual Audit Reports
January 23, 2024
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(MD&A), the basic financial statements, notes to the basic financial statements, required
supplementary information, and other supplementary schedules and statements.
• The Statistical Section — provides a broad range of operation, economic, and historical data
that provides a context for assessing the City's economic condition. This section provides
information about the City's general financial trends, revenue capacity, debt capacity,
economic and demographic trends, and operating information.
The scope of the annual audit includes the basic financial statements, which includes the
government -wide financial statements, fund financial statements, and the notes to the financial
statements. The responsibility of the auditors is to express an opinion on the basic financial
statements.
The independent auditors produce four deliverables based on their audit:
• Independent Auditor's Report: Defines the scope of the audit, responsibility of the auditor
and management, an opinion on the fair presentation of the basic financial statements, and
other matters.
• Communication Letter to the City Council and City Manager (SAS 114 Letter): Discusses
significant audit matters, difficulties encountered in performing the audit, disagreements
with management, management representations, management consultation with other
independent accounts, other audit finding or issues, and other matters.
• Independent Auditor's Report on Internal Control over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements: Communicates
deficiencies in internal control or compliance.
• Report on Agreed -Upon Procedures Applied to Appropriation Limit Schedule:
Communicates the results of the specific procedures performed on the City's calculation
of the annual appropriation limit (Gann Limit).
ANALYSIS
Auditor Reports
Independent Auditor Reports
Auditors may issue three different types of opinions at the conclusion of an audit; an unqualified,
qualified, or adverse opinion. An unqualified opinion assures the reader that the information
presented in the ACFR fairly represents the City's financial position. A qualified opinion states
that the information is fairly presented except for a particular issue. An adverse opinion indicates
that the agency has major accounting and/or internal control issues and no reliance may be placed
on the financial statements. The Finance Department staff is proud to report that for the fiscal year
ended June 30, 2023, the City of Rosemead received an unqualified (clean) opinion as stated in
the independent auditor's report and reads as follows:
City Council Meeting — Acceptance of Annual Audit Reports
January 23, 2024
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In our opinion, the financial statements referred to above present fairly, in all
material respects, the respective financial position of the governmental activities,
each major fund, and the aggregate remaining fund information of the City of
Rosemead, California, as of June 30, 2023, and the respective changes in financial
position and, where applicable, cash flows thereof for the year then ended in
accordance with accounting principles generally accepted in the United States of
America.
Communication Letter to the City Council and City Manager (SAS 114) Letter
There was nothing significant reported in the communication letter. The financial statement
disclosures are neutral, consistent and clear; the auditors had no significant difficulties in
performing the audit; and there were no disagreements with management.
Auditor's Report on Internal Controls and Compliance
There was nothing significant to report. No deficiencies in internal control were noted and there
were no noted instances of non-compliance.
Report on Agreed -Upon Procedures Applied to Appropriations Limit Schedule
No exceptions were noted to the City's calculation of the annual appropriations limit.
Financial Reports
The ACFR presents information on the status of the City's financial affairs, first on a citywide
basis (Government -Wide Financial Statements) in which all City activities are reported as
governmental activities and second, at the fund level (Fund Financial Statements). The
government -wide statements are designed to provide readers with a broad overview of the City of
Rosemead's finances while the fund statements provide more detailed information about the City's
funds.
Government -Wide Statements — There are three primary citywide financial statements: The
Statement of Net Position, the Statement of Activities, and the Balance Sheet. The Statement of
Net Position presents the City's overall financial position at a specific point in time — in this case,
June 30, 2023. The Statement of Activities presents the City's results of operations over a period
of time (one year). The Balance Sheet presents the assets, liabilities, and fund balance of all
governmental funds. The Basic Financial Statements also provide a reconciliation of the Balance
Sheet to the Statement of Net Position. The following represents highlights of the government -
wide statements:
• Net Position — As of June 30, 2023, the City's net position (total assets and deferred
outflows of resources less liability and less deferred inflows of resources) is $114.5 million,
an increase of $20.0 million over the prior fiscal year.
City Council Meeting — Acceptance of Annual Audit Reports
January 23, 2024
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• Activities —As of June 30, 2023, total revenue for all governmental funds was $53.4 million
and total expenses for all functions and programs were $33.4 million. The City's net
position increased by $20.0 million during the year through revenues in excess of expenses.
• Fund Balance — The City's total governmental funds reported combined ending fund
balances of $60.3 million, an increase of $6.9 million over the prior year. The $6.9 million
increase is comprised of an increase to the General Fund fund balance of $3.9 million and
net increases of $3.0 million to fund balances of restricted funds. The $3.06 million
represents fund balance increases to 15 of the 21 special revenue funds reported and
includes significant increases to the Measure R, Measure M, and Road Maintenance and
Rehabilitation SB 1. Of the $60.3 million combined fund balance, $0.4 thousand is non -
spendable, $29.4 million is restricted, $15.0 million is committed, $132 thousand is
assigned, and $15.4 million is unassigned and available for spending at the City's
discretion.
Governmental Fund Statements — The focus on fund statements is to provide information on
financial activities of the year and the balances of spendable resources. The General Fund, always
considered a `Major Fund' for reporting purposes, is found in the Basic Financial Statement section
of the ACFR along with the City Grant Fund, American Rescue Plan Act fund, and State and Local
Fiscal Recovery Fund. All other governmental fund statements are in the Required Supplementary
Information section of the ACFR.
General Fund. The General Fund is the chief operating fund of the City. The fund is used to
account for all financial resources except those required to be accounted for in another fund.
The fund balance on June 30, 2023 is $32.4 million, an increase of $3.8 million over the prior
fiscal year. Of the $32.4 million, $15.0 million is committed to approved capital projects and
the fund balance policy reserve requirement, and $17.0 million is unassigned, with the
remaining $485 thousand as either nonspendable or assigned. The unassigned fund balance
represents 64% of total General Fund expenditures, while total fund balance represents 122%
of that same amount.
Highlights of the change in fund balance are presented below:
• Total General Fund revenues, including other financing sources, of $38.9 million exceeded
expenditures of $35.0 million resulting in revenues over expenditures in the amount of $3.9
million.
• Comparison to the prior year — General Fund revenues increased over the prior fiscal year
by $4.4 million largely due to the growth in building permit and plan checking activity
($1.4 million), interest earnings ($0.8 million), property taxes ($0.7 million), sales tax
receipts ($0.5 million), Parks and Recreation ($0.3 million), and transient occupancy taxes
($0.2 million).
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January 23, 2024
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• Comparison to the prior year — General fund expenditures were $2.2 million more than the
prior fiscal year due largely to increase Parks and Recreation expenses increased over the
previous year by $1.1 million. The increase is also largely due to the purchase of the
Rosemead Chamber of Commerce property in the amount of $950 thousand.
• Comparison to Adopted Budget — Excluding transfers, the City's General Fund collected
revenues of $5.2 million more, equal to 8% higher, in comparison to final budget. Property
taxes completed the year $400 thousand higher due to increased assessment values. Sales
taxes completed the year $964 thousand higher. Transient occupancy tax receipts rose $0.1
million above budget. Building permits and plan checking fees completed the year $2.15
million over budget. With a return to normalcy, parks and recreation programs and services
fees completed the year $273 thousand above. The use of money and property category
revenue also rose above estimates due to an increase of $697 thousand dollars over budget
relating to interest earnings.
Other Major and Non -Major Funds — Last fiscal year, the State and Local Fiscal Recovery
Fund was been designated as a `Major' fund for the City. New for this fiscal year as a major
fund due to the amount of liabilities and deferred inflows of resources, the City Grants Fund is
another `Major' fund for the City that accounts for grants, including Safe Routes to School
funds that were used to install Americans with Disabilities Act compliant concrete sidewalk
and curb ramps on Delta Avenue between Mission and Wells. All other funds of the City are
considered non -major. Overall, the fund balances of these Other Major and Non -Major Funds
increased by $6.9 million.
Rosemead Housing Development Corporation (RHDC)
Also reported within the ACFR as a non -major governmental fund, a separate financial statement
is also published for the Housing Development Corporation. The RHDC Fund receives its funding
from tenant rents and subsidies from the Successor Agency. As operational costs have continued
to increase and tenant rents have remained relatively constant, the reliance on the subsidy from the
Successor Agency has become more important. Through the elimination of redevelopment, this
obligation was submitted and subsequently approved by the Department of Finance as an
enforceable obligation, which will ensure ongoing funding for the RHDC into the future. For
fiscal year 2022-23, revenue from rent totaled $493 thousand, and the Successor Agency subsidy
for operations was $521 thousand.
City Council Meeting — Acceptance of Annual Audit Reports
January 23, 2024
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Certificate of Achievement (GFOA)
The Government Finance Officers Association (GFOA) sponsors an award program for excellence
in financial reporting. The City received the award for its June 30, 2022 report and City staff
believes the June 30, 2023 ACFR continues to maintain the high standards set by the GFOA and
have submitted this year's ACFR for evaluation.
STAFF RECOMMENDATION
It is recommended that the City Council receive and file the City of Rosemead Annual
Comprehensive Financial Report (ACFR), the Rosemead Housing Development Corporation
(RHDC) Annual Financial Statements, and other related audit reports for fiscal year ended June
30, 2023.
FISCAL IMPACT
None with this action.
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
Prepared by:
Bryan Chua, Finance Director
ATTACHMENTS
A: City of Rosemead Annual Comprehensive Financial Report (ACFR)
B: Auditors' letter to Mayor and City Council for year ended June 30, 2023
C: Independent Auditors' Report on Internal Control over Financial Reporting
D: Report on Agreed -Upon Procedures Applied to Appropriations Limit
E: Rosemead Housing Development Corporation Basic Financial Statements
F: Auditors' letter to Board of Directors of RHDC for year ended June 30, 2023
Attachment A
City of Rosemead Annual Comprehensive
Financial Report (ACFR)
CITY OF ROSEMEAD, CALIFORNIA
Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2023
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Rosemead
Rosemead, California
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2023
Prepared By:
Finance Department
Bryan Chua
Finance Director
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CITY OF ROSEMEAD, CALIFORNIA
Annual Comprehensive Financial Report
For The Fiscal Year Ended June 30, 2023
Table of Contents
INTRODUCTORY SECTION
Letter of Transmittal ..............
Page
Number
Directoryof Officials...................................................................................................................................................
w
OrganizationalChart .................................................................................................................................................
vii
Certificate of Achievement of Excellence...............................................................................................................
viii
FINANCIAL SECTION
INDEPENDENT AUDITORS' REPORT.....................................................................................................................1
MANAGEMENT'S DISCUSSION AND ANALYSIS....................................................................................................5
BASIC FINANCIAL STATEMENTS
Government — Wide Financial Statements
Statementof Net Position..................................................................................................................................15
Statementof Activities.......................................................................................................................................17
Fund Financial Statements
Balance Sheet — Governmental Funds..............................................................................................................18
Reconciliation of the Balance Sheet of Governmental Funds
tothe Statement of Net Position........................................................................................................................21
Statement of Revenues, Expenditures and Changes in Fund
Balances— Governmental Funds......................................................................................................................22
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds to the
Statementof Activities.......................................................................................................................................24
Statement of Net Position — Proprietary Funds.................................................................................................25
Statement of Revenues, Expenses and Changes in Fund Net
Position— Proprietary Funds.............................................................................................................................26
Statement of Cash Flows — Proprietary Funds..................................................................................................27
Statement of Fiduciary Net Position — Fiduciary Funds.....................................................................................28
Statement of Changes in Fiduciary Net
Position— Fiduciary Funds................................................................................................................................29
Notesto the Financial Statements.....................................................................................................................31
REQUIRED SUPPLEMENTARY INFORMATION
Notes to Required Supplementary Information.....................................................................................................71
Budgetary Comparison Schedules
GeneralFund..................................................................................................................................................72
CITY OF ROSEMEAD, CALIFORNIA
Annual Comprehensive Financial Report
For The Fiscal Year Ended June 30, 2023
Table of Contents
FINANCIAL SECTION (Continued)
Page
Number
CityGrants Fund.............................................................................................................................................73
AmericanRescue Plan...................................................................................................................................74
SL F R F............................................................................................................................................................. 75
Pension Plan
Schedule of Proportionate Share of Net Pension Liability..............................................................................76
Schedule of Plan Contributions......................................................................................................................78
Schedule of Changes in Net Pension Liability/(Asset)and Related Ratios.....................................................80
Schedule of Plan Contributions......................................................................................................................82
Schedule of Changes in Net OPEB Liability and Related Ratios...................................................................84
Scheduleof Plan Contributions......................................................................................................................86
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
Combining Balance Sheet — Nonmajor Governmental Funds..............................................................................87
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances — Nonmajor Governmental Funds.............................................................................93
Budgetary Comparison Schedules
StateGas Tax Fund........................................................................................................................................98
Local Transportation/Sidewalk Grant..............................................................................................................99
PropositionA.................................................................................................................................................100
PropositionC................................................................................................................................................101
MeasureR....................................................................................................................................................102
MeasureM....................................................................................................................................................103
Air Quality Management District...................................................................................................................104
StreetLighting...............................................................................................................................................105
DevelopmentImpact Fee Traffic ...................................................................................................................106
Development Impact Fee Public Safety........................................................................................................107
Development Impact Fee General Government...........................................................................................108
DevelopmentImpact Fee Parks...................................................................................................................109
Community Development Block Grant(CDBG)............................................................................................110
HomeProgram..............................................................................................................................................111
Rosemead Housing Development Corporation...........................................................................................112
Road Maintenance and Rehabilitation Account SB1...................................................................................113
CleanWater Fund.........................................................................................................................................114
MeasureR CP..............................................................................................................................................115
Combining Statement of Net Position — Internal Service Funds.........................................................................116
Combining Statement of Revenues, Expenses and Changes in
Fund Net Position — Internal Service Funds........................................................................................................117
Combining Statement of Cash Flows — Internal Service Funds..........................................................................118
CITY OF ROSEMEAD, CALIFORNIA
Annual Comprehensive Financial Report
For The Fiscal Year Ended June 30, 2023
Table of Contents
Page
Number
STATISTICAL SECTION
NetPosition by Component.............................................................................................................................120
Changesin Net Position...................................................................................................................................122
Fund Balances of Governmental Funds..........................................................................................................124
Changes in Fund Balances of Governmental Funds.......................................................................................126
Assessed Value and Estimated Actual Value of Taxable Property.................................................................128
Direct and Overlapping Property Tax Rates....................................................................................................129
PrincipalProperty Taxpayers...........................................................................................................................130
Property Tax Levies and Collections...............................................................................................................131
Direct and Overlapping General Bonded Debt Outstanding............................................................................133
LegalDebt Margin............................................................................................................................................134
Pledged -Revenue Coverage............................................................................................................................136
Demographicand Economic Statistics............................................................................................................137
PrincipalEmployers.........................................................................................................................................138
Top25 Sales Tax Producers............................................................................................................................139
Full-time City Employees by Function..............................................................................................................140
Operating Indicators by Function.....................................................................................................................141
Capital Assets Statistics by Function...............................................................................................................142
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Introductory Section
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MAYOR:
SnwN Ly
MAYOR PRO TEM:
MA GA Cw
COUNCIL MEMBERS:
SAr A�A
Saw DANG
Pout Low
December 14, 2023
City of Ipsemead
8838 E, VALLEY BOULEVARD
ROSEMEAD, CALIFORNIA 91770
TELEPHONE (626) 569-2100
FAX (626) 307-9218
To the Honorable Mayor, City Council, City Manager, and Residents of the City of Rosemead.
We proudly present to you, the Annual Comprehensive Financial Report (ACFR) of the City of Rosemead for the
fiscal year ended June 30, 2023. It was prepared by the Finance Department in accordance with Generally
Accepted Accounting Principles (GAAP) as promulgated by the Government Accounting Standards Board (GASB).
Responsibility for the accuracy of the data, completeness, and fairness of the presentation, including all disclosures,
rests with the City. We believe that the information, as presented, is accurate in all material respects; that it is
presented in a manner designed to fairly set forth the financial position of the City and the results of its operations;
and that all disclosures necessary to enable the reader to gain the maximum understanding of the City's financial
affairs have been included.
Management of the City is also responsible for establishing and maintaining internal control designed to ensure that
the assets of the government are protected from loss, theft, or misuse, and to ensure that adequate accounting
data are compiled to allow for the preparation of financial statements in conformity with U.S. generally accepted
accounting principles. Internal control is designed to provide reasonable, but not absolute, assurance that these
objectives are met. The concept of reasonable assurance recognizes the cost of a control should not exceed the
benefits likely to be derived.
The City of Rosemead's financial statements have been audited by Lance, Soil, & Lunghard, LLP, a firm of licensed
certified public accountants. The goal of the independent audit is to provide reasonable assurance that the financial
statements of the City of Rosemead for the fiscal year ended June 30, 2023, are free of material misstatement. The
independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements; assessing the accounting principles used and significant estimates made by management and
evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit,
that there was reasonable basis for rendering an unmodified opinion that the City of Rosemead's financial
statements for the fiscal year ended June 30, 2023, are fairly presented in conformity with GAAP. The independent
auditor's report is presented as the first component of the financial section of this report.
The independent audit of the financial statements was part of a broader, federally mandated "Single Audit" designed
to meet the special needs of federal grantor agencies. The standard governing Single Audit engagements require
the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited
government's internal controls and compliance with legal requirements, with special emphasis on internal controls
and legal requirements involving the administration of federal awards. These reports are available in the
City of Rosemead's separately issued Single Audit Report.
Managements' discussion and analysis (MD&A) immediately follows the independent auditors' report and provides
a narrative introduction, overview, and analysis of the City's basic financial statements. This letter of transmittal
complements the MD&A and the financial statements, and it should be read from that perspective and in conjunction
with all sections of the ACFR. The Statistical section, which is unaudited, includes selected financial and
demographic information generally presented on a multi-year basis.
Profile of the Government
The City of Rosemead, incorporated in 1959, is located in the southwestern part of the state. The City occupies a
land area of 5.5 square miles and serves a population of 50,511. As a general law city, Rosemead operates under
the Council -Manager form of government.
The City Council consists of five City Council Members who are elected at large by the citizens of Rosemead and
are on a rotational Mayor and Mayor Pro Tem term. The Council, as the legislative body, is responsible for, among
other things, establishing policy, passing ordinances and resolutions, adopting the annual budget, appointing
members to various City Commissions, and appointing the City Manager, City Attorney, and City Clerk. The Council
conducts City Council meetings and study sessions as required. The City Manager is responsible for carrying out
the policies and ordinances for the City Council, for overseeing the day-to-day operations of the government, and
for appointing department directors.
The City has two blended component units: (1) the Rosemead Financing Authority (the Authority); and (2) the
Rosemead Housing Development Corporation (RHDC) Additional information on these legally separate entities
can be found in Note 1(a) in the notes to the financial statements.
Municipal services are provided to Rosemead residents in a variety of methods including a city workforce, contract
services, and special districts. Administration, Finance, Public Works, Parks and Recreation, and Planning services
are provided by City Staff while Building and Safety, Information Technology, City Attorney, Engineering, capital
improvement projects, and some street maintenance efforts are provided through contracts with private firms funded
by the City. The City's largest public agency contract is for law enforcement and traffic control services provided
by the Los Angeles County Sheriffs Department. Fire Protection, Library and Flood Control are provided by special
districts within Los Angeles County which are primarily funded through a portion of the ad valorem property taxes.
Public schools serving residents of Rosemead are under the authority of independent school districts, but the City
works closely with the districts to provide quality educational opportunities for grades K-12. Garvey School District,
Rosemead School District, and EI Monte Union High School District serve residents of Rosemead. There are
9 elementary schools, 3 middle schools, and 1 high school.
Budgetary Controls
The annual budget serves as the foundation for the City of Rosemead and its component units for financial planning
and control. The development of the Fiscal Year Annual Operating Budget begins in January with the dissemination
of the budget preparation guidelines. All departments and component units of the City are required to submit
requests for appropriation to the City Manager in March of each year. The Finance Department, under the direction
of the City Manager, uses these requests as the starting point for developing a proposed budget. The City Manager
presents the proposed budget to the City Council for review prior to June 30. The City Council holds public meetings
on the proposed budget and adopts the final budget no later than June 30, the close of the City of Rosemead's
fiscal year. The appropriated budget is prepared by fund and department (e.g., public safety).
The City's budget policy is that all appropriations for operating accounts lapse at fiscal year-end. Outstanding
operating account encumbrance balances at fiscal year-end are paid from the appropriations in which the invoice
is paid. City Council may amend the budget at any time during the fiscal year. The City Manager may authorize
budget transfers between programs and departments within the same fund while budgetary changes between funds
require City Council approval.
Budget -to -actual comparisons are provided in this report for each individual governmental fund for which an
appropriated annual budget has been adopted. For the general fund and major special revenue funds, these
comparison schedules are presented as part of the required supplementary information in the accompanying
financial statements. For governmental funds that have appropriated annual budgets, other than the general fund,
and major special revenue funds, the comparison schedules are presented in the other supplementary section of
the accompanying financial statements.
Economic Condition and Outlook
Despite the economy avoiding recession due to sustained household spending and historically low unemployment,
this circumstance remains exceptional, given that inflation surpassed Federal Reserve targets and interest rates on
loans and credit cards escalated. In anticipation of the future, households are confronted with constrained financial
resources, while diverse sectors contend with obstacles such as labor expenses, inventory concerns, and intense
competition.
As of September, economic forecasters have reached a consensus that GDP growth will decline to approximately
zero percent in the initial quarter of 2024, followed by a recovery to moderate levels.
The Conference Board, a global, nonprofit think tank that provides trusted insights for the future, forecasts
0.8% GDP growth in the United States in 2024, with a "shallow recession" in the first half of the year. According to
the non-profit, wage growth is slowing, pandemic savings are declining, and household debt in the United States is
increasing. The economic outlook also remains vulnerable to a recession due to the Federal Reserve's ongoing
indication that interest rates might persist at elevated levels for a longer duration than initially anticipated.
Due to a stable property tax base and a reasonably diverse sales tax base, the City of Rosemead has a solid
financial foundation. However, the fiscal impact of rising interest rates on loans and credit cards, slowing wage
growth, declining savings, and the Fed's actions cause economic uncertainty. The City's future economic health
will be dependent on maintaining healthy reserves through fiscally conservative budgets and policies, in addition to
aggressively pursuing economic development opportunities. As part of its sound, conservative fiscal policy, the
City will keep an eye on important economic indicators, revenue sources, and spending levels.
Property tax, including Property Tax In -Lieu of VLF, is the City's largest tax source at $11.6 million and makes up
approximately 37% of the General Fund revenues. Total assessed value from the 2022-23 tax roll is $5.8 billion,
up $311 million from the prior year. Residential property represents 78% of this growth as housing values rise. The
median sales price for a single-family home decreased from $850,000 to $810,000 over the past year when
comparing quarter 2 calendar year data. The residential category assessed value increased approximately
$223 million, which represents a 5.7% increase. Because the City of Rosemead is classified as a'no-low property
tax city', the General Fund retains just $0.0668 for every dollar of property tax collected within the City.
Sales and use tax revenue is the second largest revenue source forthe General Fund, at $7.4 million and represents
approximately 23% of the General Fund revenues. Consumer goods continue to be the top category of sales tax
generating businesses in Rosemead, generating 33% of sales tax revenues followed by 27% from restaurants and
hotels.
Transient occupancy tax (TOT) and recreation program revenues were most negatively impacted by the pandemic.
Typically, the third largest source of income to the General Fund pre -pandemic, TOT receipts are in fourth position,
behind increased building permit revenue. Recreation program revenue continues to be below the pre -pandemic
level of $867,400 in FY 2019 to just $679,500 in FY 2023. However, compared to FY 2022, recreation program
revenue increased $114,400.
Lona -Term Financial Planning
In addition to managing the City's money in a manner that ensures Rosemead is financially stable, the long-term
Strategic Plan reflects the City Council's continued commitment to support high quality municipal services, provide
for the maintenance and expansion needs of the City's infrastructure and facilities, and profile the City's economic
development strategy. The City's first Strategic Plan was adopted by the City Council in 2009 and was to guide the
organizational efforts of the Council, Commissions, and staff to meet its Vision 2020' goal. The strategic planning
process, and subsequent updates, included an extensive public outreach process and a series of public meetings.
Updated every two years, the Strategic Plan for 2021-2023 uses the City of Rosemead's vision and key
organizational goals to set clear priorities and action items for the succeeding two years. The vision, key
organizational goals, and action items in the Strategic Plan update are designed to guide the decisions of the
City Council, focus of the City administration, and daily work of City staff.
In December 2021, the City Council adopted a 2030 Strategic Plan which focuses and values safety, diversity,
community, service, and family. This vision will assist in creating a safe, welcoming, connected, and active city, a
destination with thriving local businesses, well-maintained parks and infrastructure, and quality programming and
services which support the entire City. Our overall mission is for Rosemead to provide quality programs, services,
and support that builds relationships, increase opportunities, and make Rosemead a great place to live, work, and
play.
Maior Accomolishments
Earlier this year, the City Council approved a new residential planned development project, "Cassia"
(formerly "Mission Villas") consisting of 37 residential units, which included eight small lot subdivisions and four
affordable units. The project is currently under construction.
The City's 6th Cycle Housing Element (planning period 2021 to 2029) was certified by the State Department of
Housing and Community Development (HCD) on August 1, 2022. The City of Rosemead was number 21 out of
197 SCAG jurisdictions to be certified (top 11 As a result, the City began initiating updates to the Zoning Code and
will implement the rezoning program to accommodate additional housing capacity, comply with State laws, and to
carry out the programs and objectives detailed in the Housing Plan of the Housing Element. Simultaneously, the
project also includes updates to address outdated chapters/sections of the Zoning Code related to zoning
definitions, existing zoning districts, uses, and development standards within each, variable height, sign code,
off-street parking requirements, and adding the existing Residential/Commercial Mixed -Use Overlay to additional
commercial and industrial zones in the City.
The City Council approved the Strathmore Garvey Mixed -Use Project. The project includes the construction of a
seven -story, mixed-use development with 35,105 square feet of nonresidential use and 93 residential apartments,
24 of which are live/work units.
The electronic plan check submittal and plan review workflow is streamlined and has reduced hardcopy plan check
submittals to a ratio of 2%. The City has also implemented expedited residential solar plan check review and
permitting process.
The City applied for the California Automated Permit Processing Program (CaIAPP) and was awarded $60,000 to
establish online solar permitting. The City is currently developing a system for online solar permits.
The City Council approved the streamlined permitting process for Electric Vehicle Charging Station and established
Electric Vehicle Charging Station checklist procedures to comply with State of California EVSE requirements.
Earlier this year, the City Council approved the Affordable Housing Agreement for "Cassia," a 37 -unit residential
planned development project consisting of four affordable units. The City will utilize the United States Department
of Housing and Urban Development's (HUD) Home Investment Partnership Program (HOME) funds through the
Homeownership Assistance Program.
The City Council also approved the Annual Action Plan. The Annual Action Plan provides a concise summary of
the actions, activities, and the specific federal and non-federal resources that will be used each year to address the
priority needs and specific goals identified by the Consolidated Plan.
The Public Works Department completed five major projects during FY 22-23 including the Safe Routes to School
Sidewalk Gap Closure, Rosemead Park Restroom Renovation, Dog Park at Garvey Park, Storm Water Catch Basin
Upgrade, and City Facilities Master Key Lock Replacement projects. The projects were funded using a variety of
sources including Community Development Block Grant, Development Impact Fees, Measure W, and Measure R.
iv
Future Initiatives
It is anticipated that a couple developments will begin construction, which includes "The Myriad" and "Garvey Del
Mar Plaza." "The Myriad" is the City's first food hall, consisting of 27 leasable areas ranging from a 15 square foot
kiosk to a 3,800 square foot unit, indoor and outdoor dining areas, and a rooftop deck. Garvey Del Mar Plaza is a
six -story mixed-use development located within the Garvey Avenue Specific Plan with 15,945 square feet of
nonresidential use and 92 residential units, 27 of which are live/work units.
The entitlements for the Taiwan Center project will be processed and completed this year. The commercial
development is proposed at three stories with 42,041 square feet of floor area. The building plan check for Prospect
Villa, a mixed- use project located within the Garvey Avenue Specific Plan that consists of 75 residential units (24
of which are IiveANork units) and 6,346 square feet of commercial floor area will be approved.
The City's initiatives to update the Zoning Code, implement the rezoning program to accommodate additional
housing capacity, compliance with State laws, and to carry out the programs and objectives detailed in the Housing
Plan of the Housing Element will most likely be presented to the Planning Commission and City Council for approval.
Awards and Acknowledaements
The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in
Financial Reporting to the City of Rosemead for its Annual Comprehensive Financial Report for the fiscal year
ended June 30, 2022. This was the 5th consecutive year that the City has received this prestigious award. The
Certificate of Achievement is the highest form of recognition in governmental management. To be awarded this
certificate, a government must publish an easily readable and efficiently organized ACFR, with contents that
conform to program standards. The report must satisfy both generally accepted accounting principles and all
applicable legal requirements. We believe the current Annual Comprehensive Financial Report conforms to the
Certificate of Achievement program requirements and are submitting it to GFOA to determine its eligibility for a
certificate for the fiscal year ended June 30, 2023.
The preparation of this report is made possible by the talent and dedicated services of the Finance Department staff
with special recognition to Tess Anson, Finance Manager, and Polly Tan, Accountant. In addition, appreciation is
extended to our independent auditors, Lance, Sol[ & Lunghard, LLP, for its expertise and advice in preparing this
year's financial report. We also thank the Mayor and members of the City Council in their interest and support in
planning and conducting the financial operations and corresponding financial disclosures of the City in an open,
public, and transparent manner.
Respectively submitted,
IV
Bryan Chua
Finance Director/City Treasurer
City of Rosemead
City Officials as of June 30, 2023
CITY COUNCIL
Steven Ly
Mayor
Sandra Armenta
Council Member
Margaret Clark
Mayor Pro Tem
Sean Dang
Council Member
EXECUTIVE STAFF
City Manager- Ben Kim
Polly Low
Council Member
CityClerk.....................................................................................
Ericka Hernandez
City Attorney.............................................................................
Rachel H. Richman
Assistant City Manager.................................................................................
Vacant
Chief of Police (LA County Sheriffs Dept) ...........................................
Kevin Tiwari
Director of Community Development (Interim).......................................Stan
Wong
Directorof Finance ...............................................................................
Bryan Chua
Director of Parks & Recreation ....................................................Thomas
Boecking
Director of Public Works........................................................................Noya
Wang
A
City of Kosemead
Organzational Chart
Cita of Rosemead
Government Finance Officers Association Award
Govenunent Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Rosemead
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30. 2022
The Government Finance Officers
Association of the United States and
Canada (GFOA) awarded a Certificate of
Achievement for Excellence in Financial
Reporting to the City of Rosemead for its
Annual Comprehensive Financial Report
for the fiscal year ended June 30, 2022.
The Certificate of Achievement is a
prestigious national award recognizing
conformance with the highest standards for
preparation of a state and local government
financial reports.
To be awarded a Certificate of
Achievement, a government unit must
publish an easily readable and efficiently
organized comprehensive annual financial
report, whose contents conform to program
standards. The ACFR must satisfy both
generally accepted accounting principles
and applicable legal requirements.
The award is valid for a period of one year
only. We believe our current report
continues to conform to the program
requirements and will therefore, be
submitting it to GFOA for consideration.
The City of Rosemead has received the
Certificate of Achievement for the last
5 consecutive years.
Financial Section
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LS1.29 ::
INDEPENDENT AUDITORS' REPORT
To the Honorable Mayor and Members of the City Council
City of Rosemead, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, each major fund, and the
aggregate remaining fund information of the City of Rosemead, California (the "City"), as of and for the year ended
June 30, 2023, and the related notes to the financial statements, which collectively comprise the City's basic
financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective
financial position of the governmental activities, each major fund, and the aggregate remaining fund information of
the City, as of June 30, 2023, and the respective changes in financial position, and, where applicable,
cash flows thereof, for the year then ended in accordance with accounting principles generally accepted in the
United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America
and the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Our responsibilities under those standards are further described in the
Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be
independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical
requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our audit opinions.
Emphasis of Matter
Change in Accounting Principle
As described in Note 1 to the financial statements, in 2023, the City adopted new accounting guidance,
GASB Statement No. 96, Subscription Based Information Technology Arrangements. Our opinion is not modified
with respect to this matter.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with
accounting principles generally accepted in the United States of America, and for the design, implementation, and
maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free
from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events,
considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for
twelve months beyond the financial statement date, including any currently known information that may raise
substantial doubt shortly thereafter.
PrimeGlobal
LSLO*::
To the Honorable Mayor and Members of the City Council
City of Rosemead, California
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a
guarantee that an audit conducted in accordance with generally accepted auditing standards and
Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting
a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are
considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the
judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditing
Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or
error, and design and perform audit procedures responsive to those risks. Such procedures include
examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the City's internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in ourjudgment, there are conditions or events, considered in the aggregate, that raise
substantial doubt about the City's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit, significant audit findings, and certain internal control -related matters that we identified
during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's discussion
and analysis, budgetary comparison schedules for the General Fund and major special revenue funds, and the
required pension and other postemployment benefits schedules, as listed on the table of contents, presented to
supplement the basic financial statements. Such information is the responsibility of management and, although not
a part of the basic financial statements, is required by the Governmental Accounting Standards Board who
considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. We have applied certain limited procedures to the required
supplementary information in accordance with auditing standards generally accepted in the United States of
America, which consisted of inquiries of management about the methods of preparing the information and
comparing the information for consistency with management's responses to our inquiries, the basic financial
statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express
an opinion or provide any assurance on the information because the limited procedures do not provide us with
sufficient evidence to express an opinion or provide any assurance.
.000
LS L•••00
•
To the Honorable Mayor and Members of the City Council
City of Rosemead, California
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise
the City's basic financial statements. The accompanying combining and individual fund financial statements and
schedules (supplementary information) are presented for purposes of additional analysis and are not a required
part of the basic financial statements. Such information is the responsibility of management and was derived from
and relates directly to the underlying accounting and other records used to prepare the basic financial statements.
The information has been subjected to the auditing procedures applied in the audit of the basic financial statements
and certain additional procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the basic financial statements or to the basic financial statements
themselves, and other additional procedures in accordance with auditing standards generally accepted in the
United States of America. In our opinion, the supplementary information is fairly stated, in all material respects, in
relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information comprises
the introductory and statistical sections but does not include the basic financial statements and our auditor's report
thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express
an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and
consider whether a material inconsistency exists between the other information and the basic financial statements,
or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude
that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Govemment Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 14, 2023, on
our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain
provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is
solely to describe the scope of our testing of internal control over financial reporting and compliance and the
results of that testing, and not to provide an opinion on the effectiveness of the City's internal control over financial
reporting or on compliance. That report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering City's internal control over financial reporting and compliance.
io
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Brea, California
December 14, 2023
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Management's
Discussion & Analysis
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City of Rosemead
MANAGEMENT'S DISCUSSION AND ANALYSIS
Year Ended June 30, 2023
The following Management's Discussion and Analysis (MD&A) of the City of Rosemead's financial performance
provides an introduction and overview to the financial activities of the City of Rosemead for the fiscal year ended
June 30, 2023. This narrative discussion and analysis focuses on the current year's activities, resulting changes
and currently known facts; therefore, the information presented herein should be considered in conjunction with
additional information furnished in the letter of transmittal and the accompanying basic financial statements.
FINANCIAL HIGHLIGHTS
• As of June 30, 2023, the City's net position (total assets and deferred outflows of resources less total
liabilities and less deferred inflows of resources) is $114.5 million, an increase of $20.0 million over the prior
fiscal year.
• As of June 30, 2023, total revenue was $53.4 million and total expenses for all functions and programs
were $33.4 million. The City's net position increased by $20.0 million during the year.
• The City's total governmental funds reported combined ending fund balances of $60.3 million, an increase
of $6.9 million over the prior year. Of this $60.3 million, $0.4 million was non -spendable, $29.4 million was
restricted, $15.0 million was committed, $0.1 million was assigned, and $15.4 million was unassigned.
• With $31.5 million in general fund revenues (excluding transfers) and $26.6 million in general fund
expenditures (excluding transfers), a pre -transfer general fund surplus of $4.9 million was generated.
• The General Fund's fund balance at the close of the fiscal year was $32.4 million, an increase of
$3.9 million over the prior year. Of this $32.4 million, $16.9 million, representing 64% of expenditures, was
unassigned and $15.0 million was committed to meet the City's fund balance policy requirement of 40% of
expenditure.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis portion of the annual report is intended to serve as an introduction to, and provide the
reader with a fundamental understanding of, the Annual Comprehensive Annual Report (ACFR) for the
City of Rosemead. The ACFR is divided into four main sections. First is the Introduction Section which provides
the letter of transmittal, an organizational chart, and a list of City officials. The Introductory Section is followed by
the Financial Section, which contains the independent auditor's report, the management's discussion and analysis,
and finally the basic financial statements. These statements contain the "core" financial information for the
City of Rosemead. The basic financial statements include the government -wide financial statements, followed by
the fund financial statements, and finally, the notes to the financial statements. The Financial Section is followed
by the Supplemental Data portion of the report, which provides individual funds and combining information that rolls
up into the amounts shown in the basic financial statements. The final portion of the ACFR is the Statistical Section.
This section presents selected financial and demographic information, generally presented on a multi-year basis.
Government -wide Financial Statements. The government -wide financial statements are designed to provide
readers with a broad overview of the City of Rosemead's finances, in a manner similar to a private -sector business.
Information contained within the government -wide statements includes the entire City government (except fiduciary
funds). These statements use the accrual basis of accounting with the measurement focus on that of economic
resources.
The Statement of Net Position presents information on all of the City of Rosemead's assets and deferred outflows
of resources and liabilities and deferred inflows of resources, with the difference between the two reported as net
position. Increases or decreases in net position may serve as a useful indicator of whether the financial position of
the City of Rosemead is improving or deteriorating over time.
City of Rosemead
Management's Discussion and Analysis
Year Ended June 30, 2023
The Statement of Activities presents information showing how the City's netposition changed during the most recent
fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change
occurs, regardless of the timing of related cash flows. This means revenues and expenses in this statement are
recorded when earned or a liability is incurred. Thus, items such as the value of earned but unused vacation leave
will be recorded as an expense of the current period, even though the actual use of the vacation time may not be
until subsequent periods.
Typically, government -wide financial statements are distinguished between governmental activities which are
principally supported by taxes or intergovernmental revenues and business -type activities which are intended to
recover all or a significant portion of their costs through user fees and charges. The governmental activities of the
City of Rosemead include general government, public safety, community development, parks and recreation, and
public works. The City of Rosemead does not have any business -type activities.
The government -wide financial statements include not only the City of Rosemead itself (known as the primary
government) but also two blended component units -the Rosemead Financing Authority and the Rosemead Housing
Development Corporation and one fiduciary component unit- the Rosemead Successor Agency. The City is
financially accountable forthese entities and financial information for these blended and fiduciary units are reported
within the financial information presented for the primary government itself. The government -wide financial
statements can be found on pages 15-16 of this report.
Fund financial statements. Afund is a grouping of related accounts that is used to maintain control over resources
that have been segregated for specific activities or objectives. The City of Rosemead, like other state and local
governments, uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements.
The fund financial statements provide more detailed information about the City's most significant funds, not the City
as a whole. All of the funds of the City of Rosemead can be divided into three categories: governmental funds,
proprietary funds, and fiduciary funds.
Governmental funds. Governmental funds are used to account for essentially the same functions reported as
governmental activities in the government -wide financial statements. However, unlike the government -wide
financial statements, governmental fund financial statements use the modified accrual basis of accounting and
focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources
available at the end of the fiscal year. Only assets expected to be used and liabilities that come due during the year
or soon thereafter are reported on the Balance Sheet. No capital assets are included. Revenues for which cash is
received during or soon after the end of the year, and expenditures for goods and services that have been received
during the year, are included within the Statement of Revenues, Expenditures, and Changes in Fund Balance.
Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is
useful to compare the infomnation presented for governmental funds with similar information presented for
governmental activities in the government -wide financial statements. By doing so, readers may better understand
the long-term impact of the government's near-term financing decisions. Both the Governmental Fund Balance
Sheet and the Statement of Revenues, Expenditures, and Changes in Fund Balance provide a reconciliation to
facilitate this comparison.
The City of Rosemead and its component units maintain 22 individual governmental funds. Individual fund
information is presented for the "major" funds in the governmental fund balance sheet and in the governmental fund
statement of revenues, expenditures, and changes in fund balances. The "major' funds presented include the
General Fund and the American Rescue Plan Act Fund. Information for the remaining governmental funds is
combined into a single, "other governmental funds" column on the face of the financial statements. Individual fund
data for each of these non -major governmental funds is provided in the form of "combining statements' presented
in the Supplemental Data portion of the report. The basic governmental fund financial statements can be found
on pages 18-24 of this report.
City of Rosemead
Management's Discussion and Analysis
Year Ended June 30, 2023
Proprietary Funds are used to report two types of funds: enterprise funds and internal service funds.
Enterprise funds report the same functions presented as "business -type" activities in the government -side financial
statement. These include activities that the City operates similar to a private business. The City of Rosemead does
not have any enterprise funds. Internal service funds are an accounting device used to accumulate and allocate
costs internally among the City's various functions. The City uses internal service funds to account for vehicle and
equipment operations and replacement, and information services operations and equipment replacement. Because
these two services benefit governmental type functions, the activity has been included within
"governmental activities" in the government -side financial statements. The internal service funds are combined into
a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal
service funds is provided in the form of combining statements in the supplementary information section of this
report. The basic proprietary fund financial statements can be found on pages 25-27 of this report.
Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary
funds are not reflected in the government -wide financial statement because the funds are custodial in nature, and
therefore, are not available to support City of Rosemead programs. The basic fiduciary fund financial statements
can be found on pages 28-29 of this report.
Notes to the financial statements. The notes provide additional information that is essential to a full understanding
of the data provided in the government -wide and fund financial statements. The combining statements referred to
earlier in connection with non -major governmental funds and internal service funds are presented immediately
following the required supplementary information on pensions. Combining and individual fund statements and
schedules can be found on pages 30-70 of this report.
Other information. In addition to the basic financial statements and accompanying notes, this report also presents
certain required supplementary information concerning the City of Rosemead's progress in funding its obligation to
provide pension benefits to its employees. Required supplementary information and notes can be found on
pages 71-75 of this report.
GOVERNMENT -WIDE FINANCIAL ANALYSIS
Net Position. As noted earlier, net position may serve over time as a useful indicator of a government's financial
position. At June 30, 2023, the City's net position totaled $114.5 million. Total net position increased by
$20.0 million or 21.2% when compared to the prior year.
The chart below reflects the City's net position for the fiscal year ended June 30, 2023, with comparative data for
the fiscal year ended June 20, 2022.
City of Rosemead
Management's Discussion and Analysis
Year Ended June 30, 2023
Net Position
As of June 30, 2023 and 2022
Goijemmental Actiaities
2023 2022 Change
Current and other assets
86,123,358
78,704,080
7,419,278
Capital assets
50,254,214
47,946,882
2,307,332
Total assets
136,377,572
126,650,962
9,726,610
Deferred outflows of resources
5,381,330
2,435,033
2,946,297
Long-term liabilities outstanding
14,043,730
5,242,029
8,801,701
Other liabilities
11,960,666
23,887,914
(11,927,248)
Total liabilities
26,004,396
29,129,943
(3,125,547)
Deferred inflows of resources
1,280,293
5,522,616
(4,242,323)
Net position
Net Inwstment in Capital Assets
49,863,061
47,464,095
2,398,966
Restricted
29,695,512
24,948,999
4,746,513
Unrestricted
34,915,640
22,020,342
12,895,298
Total net position
$ 114,474,213 $
94,433,436 $
20,040,777
The City's net position of $114.5 million is made up of three components: Net Investment in Capital Assets,
Restricted Net Position, and Unrestricted Net Position. The largest portion, $49.9 million or 44%, of the City's net
position reflects the net investment in capital assets such as land, buildings, machinery, and equipment, less any
related debt used to acquire those assets that were still outstanding. The City of Rosemead uses these capital
assets to provide services to the residents of the City, consequently, these assets are not available for meeting
current financial obligations. An additional portion of $29.7 million or 26% of the City's net position represents
various resources subject to external restrictions on how they may be used. These fund balance amounts are said
to be restricted. The remaining balance of unrestricted net position of $34.9 million, or 30%, may be used to meet
the City's ongoing obligations. This is the only "discretionary" portion of the City's total net position amount.
Net Position
a Net Investment in Capital Assets ■Restnued ■Unrestncted
City of Rosemead
Management's Discussion and Analysis
Year Ended June 30, 2023
Changes in Net Position. The statement of net position provides a snapshot at a given point in time of the assets
and liabilities of the City. The other citywide statement provided is the Statement of Activities. This statement
provides the reader with information regarding the revenues, expenses, and changes in net position over the fiscal
year. Generally, all changes to the City's net position from one fiscal year to the next flow through the statement of
activities. The City's programs for governmental activities include general government, public safety, community
development, parks and recreation, and public works. The following is a summary schedule showing the
components that make up the City's changes in net position for the years ended June 30, 2023 and 2022.
Changes in Net Position
Years Ended June 30, 2023 and 2022
Governmental activities. The City's program revenues totaled $27.8 million with a cost of all governmental
activities for the current year being $33.4 million. The City paid for the remaining "public benefit" portion of
governmental activities with tax and other general revenue sources. The following chart compares expenses to
program revenues for all governmental activities.
Governmental Activities
2023
2022
Change
REVENUES
Program revenues
Charges for services
$ 10,402,919 $
8,295,009
2,107,910
Operating grants and contributions
15,398,364
5,550,126
9,848,238
Capital grants and contributions
1,996,455
1,877,695
118,760
General revenues:
Property taxes
11,750,041
10,881,809
868,232
Othertaxes
11,484,612
10,582,351
902,261
Use of money and property
2,110,332
596,871
1,513,461
Other
266,577
99,978
166,599
Total revenues
53,409,300
37,883,839
15,525,461
EXPENSES
General government
4,916,281
5,285,495
(369,214)
Public safety
10,824,136
10,975,401
(151,265)
Community development
3,679,872
3,139,695
540,177
Parks and recreation
3,444,775
2,560,821
883,954
Public works
10,471,184
9,420,544
1,050,640
Interest on long-term debt
32,275
-
32,275
Total expenses
33,368,523
31,381,956
1,986,567
Change in net position
20,040,777
6,501,883
13,538,894
Net position - Beginning
94,433,436
87,944,050
6,489,386
Restatement
-
(12,497)
12,497
Net position - Ending
$ 114,474,213 $
94,433,436 $
20,040,777
Governmental activities. The City's program revenues totaled $27.8 million with a cost of all governmental
activities for the current year being $33.4 million. The City paid for the remaining "public benefit" portion of
governmental activities with tax and other general revenue sources. The following chart compares expenses to
program revenues for all governmental activities.
City of Rosemead
Management's Discussion and Analysis
Year Ended June 30, 2023
Expenses and Program Revenues
Governmental Activities
12
S
4
2
General Public Safety Co nmunity Parks and Pudic Works
Government Development Recreation
The total revenues experienced a year -over -year increase of $15.5 million. The primary contributing factors to this
are the rise in property tax revenue by $0.9 million, sales tax receipts by $0.5 million, transient occupancy taxes by
$0.2 million, building permit and plan checking fees by $1.3 million, use of money and property by $1.5 million, and
the recognition of American Rescue Plan and SLFRF grant revenues in the amount of $8.0 million.
Total expenses were $10.5 million more than the prior fiscal year due to increases in General Government relating
to increased costs in personnel, contract services, and utilities. Public Safety increased over the prior year due to
an increase in the Los Angeles County's Sheriff Law Enforcement contract. In addition, there was an increase in
capital project spending when compared to the prior fiscal year. Parks and Recreation expenses increased over
the previous year due the resumption of services and programs that were reduced or eliminated during the
pandemic.
'bxM
d85
Revenues Swm
Ga mmW Ac#vfhe
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wna.nr
es
10
iuWlcnN Ememm
Govemme,W PWuhes
City of Rosemead
Management's Discussion and Analysis
Year Ended June 30, 2023
FINANCIAL ANALYSIS OF THE CITY'S FUNDS
runctonal Expenses - Twoyear Comparison
.2023 .203:
I
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gwemment development reaee6gn
The City uses governmental fund accounting to ensure compliance with budgetary allocations and to maintain
control over resources that are legally, or otherwise, restricted for specific purposes. Following is a discussion of
the individual "major" funds as shown on the Balance Sheet for Governmental Funds in the basic financial
statements.
General Fund. The General Fund is the chief operating fund of the City of Rosemead. It is used to account for all
financial resources, except those required to be accounted for in another fund. The General Fund is always reported
as a "major fund". The General Fund reported $31.5 million in revenues and $26.6 million in expenditures resulting
in revenues over expenditures in the amount $4.9 million. Total fund balance at June 30, 2023 is $32.4 million,
composed of $35.2 million in assets combined with $2.2 million in liabilities and $0.6 million in deferred inflows of
resources. A total of $32.4 million fund balance is classified as $0.4 million nonspendable, $15.0 million committed,
$0.1 million assigned, and $16.9 million unassigned. As a measure of the General Fund's liquidity, it may be useful
to compare both unassigned fund balance and total fund balance to total fund expenditures. Unassigned fund
balance represents 64% of total General Fund expenditures, while total fund balance represents 122% of that same
amount.
The fund balance of the City's General Fund increased by $3.9 million during the current year. Highlights of the
change in fund balance are presented below:
• Total General Fund revenues of $31.5 million exceeded expenditures of $26.6 million.
The fiscal year's fund revenues increased by $4.4 million over prior fiscal year due to growth in nearly every
category. There were increases in property taxes by $795 thousand, sales taxes by $479 thousand,
transient occupancy taxes by $215 thousand, franchise tax fees by $257 thousand, building permit and
plan checking by $1.35 million, parks and recreation by $273 thousand. Facilities rental and interest income
also increased by $1.1 million.
Due to increases in Community Development, Parks and Recreation, Public Works, and Capital Outlay as
well as decreases in General Government, and Public Safety, General fund expenditures were $2.7 million
higher than the previous fiscal year. The majority of the cost increase was attributable to salary and benefits
$409 thousand, professional and technical services $166 thousand, Parks & Recreations community events
$206 thousand, other general services expenditures $881 thousand, and capital outlay and CIP project
costs $1.1 million.
• General Fund Budget Analysis. The budget, as adopted for 2022-23 contained $33.7 million in estimated
revenue and $37.6 million in appropriations. This projected a $3.9 million deficit for the fiscal year. The
final financial results indicate that there was a revenue of $38.9 million, which exceeded the expenditures
of $35.0 million. As a result, there was a positive addition of $3.9 million to the fund balance of the General
Fund.
11
Soorcn of Revenue - Two-year Cvmwsan
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FINANCIAL ANALYSIS OF THE CITY'S FUNDS
runctonal Expenses - Twoyear Comparison
.2023 .203:
I
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G.A pisksakty carni Pi PWlcrake
gwemment development reaee6gn
The City uses governmental fund accounting to ensure compliance with budgetary allocations and to maintain
control over resources that are legally, or otherwise, restricted for specific purposes. Following is a discussion of
the individual "major" funds as shown on the Balance Sheet for Governmental Funds in the basic financial
statements.
General Fund. The General Fund is the chief operating fund of the City of Rosemead. It is used to account for all
financial resources, except those required to be accounted for in another fund. The General Fund is always reported
as a "major fund". The General Fund reported $31.5 million in revenues and $26.6 million in expenditures resulting
in revenues over expenditures in the amount $4.9 million. Total fund balance at June 30, 2023 is $32.4 million,
composed of $35.2 million in assets combined with $2.2 million in liabilities and $0.6 million in deferred inflows of
resources. A total of $32.4 million fund balance is classified as $0.4 million nonspendable, $15.0 million committed,
$0.1 million assigned, and $16.9 million unassigned. As a measure of the General Fund's liquidity, it may be useful
to compare both unassigned fund balance and total fund balance to total fund expenditures. Unassigned fund
balance represents 64% of total General Fund expenditures, while total fund balance represents 122% of that same
amount.
The fund balance of the City's General Fund increased by $3.9 million during the current year. Highlights of the
change in fund balance are presented below:
• Total General Fund revenues of $31.5 million exceeded expenditures of $26.6 million.
The fiscal year's fund revenues increased by $4.4 million over prior fiscal year due to growth in nearly every
category. There were increases in property taxes by $795 thousand, sales taxes by $479 thousand,
transient occupancy taxes by $215 thousand, franchise tax fees by $257 thousand, building permit and
plan checking by $1.35 million, parks and recreation by $273 thousand. Facilities rental and interest income
also increased by $1.1 million.
Due to increases in Community Development, Parks and Recreation, Public Works, and Capital Outlay as
well as decreases in General Government, and Public Safety, General fund expenditures were $2.7 million
higher than the previous fiscal year. The majority of the cost increase was attributable to salary and benefits
$409 thousand, professional and technical services $166 thousand, Parks & Recreations community events
$206 thousand, other general services expenditures $881 thousand, and capital outlay and CIP project
costs $1.1 million.
• General Fund Budget Analysis. The budget, as adopted for 2022-23 contained $33.7 million in estimated
revenue and $37.6 million in appropriations. This projected a $3.9 million deficit for the fiscal year. The
final financial results indicate that there was a revenue of $38.9 million, which exceeded the expenditures
of $35.0 million. As a result, there was a positive addition of $3.9 million to the fund balance of the General
Fund.
11
City of Rosemead
Management's Discussion and Analysis
Year Ended June 30, 2023
2022-23 2022-2023 2022-23 Variance with %Actuals to
Adopted Budget Final Actual Final Budget Amended Budget
Total revenue 27,717,000 33,715,300 38,924,810 5,209,510 15%
Total expenditures 27,712,200 37,600,000 35,050,644 2,549,356 -7%
Net 4,800 (3,884,700) 3,874,166 7,758,866
The City's General Fund collected revenues of $5.2 million more, equal to 15% higher, in comparison to the final
budgeted estimates. Revenue from property taxes, sales taxes, transient occupancy taxes, and franchise fees
were all higher than expected, contributing $1.5 million more revenue than budgeted.
Property tax revenue was $322 thousand more than budgeted due to a growth in the assessed valuation of
properties. Sales tax revenue was $864 thousand more than projected due to the COVID-19 pandemic restrictions
being lifted. This also contributed to the surge in travel which accounted for $112 thousand more in transient
occupancy tax revenue than the city anticipated. Charges for services were $488 thousand than budgeted primarily
due to reopening of parks and recreation programs. The use of money and property was $761 thousand more than
budget due to an increase in recreation facility rentals and increase in the value of the city's investments earnings
at the end of the year. Revenues within the licenses and permits category completed the year $2.2 million over the
estimate due to strong building permit revenues.
The General Fund expenditure budget had an actual variance of $2.5 million due to savings in all governmental
activities. General government departments completed the year $1.0 million below budget due to savings in
contingency expenses, personnel due to vacancies, and contract services. Public Safety was $635 thousand below
budget due to savings in law enforcement contract services, and reduction in animal control services. Public Works
was $452 thousand below budget due to reduced facility maintenance, contract management services and capital
equipment. Parks and recreation were $675 thousand below budget due to savings in personnel due to vacancies.
American Rescue Plan Act. In March of 2021, President Biden signed the American Rescue Plan Act (ARPA) of
2021 into law. The $1.9 trillion package is designed to combat the COVID-19 pandemic, as well as its public health
and economic consequences, and the city received $17.9 million as part of it. On April 26, 2022, the City Council
accepted the ARPA Final Rule's standard revenue loss allowance of $10 million, which was then transferred from
the ARP fund, which received the funds, to the SLFRF fund, which was established to track the expenditure of the
$10 million. Several Council meetings were held to discuss the application of the $10 million standard revenue loss
allowance and the remaining $7.9 million ARPA funds, which were partially expended in Fiscal Year 2023 and
partially reflected in the Fiscal Year 2024 Budget.
Grants Fund. Accounts for non -repayable funds disbursed or given by Federal, State, County, and Special District
Entities. The Grands Fund is used to fund a specific project or program which requires some level of compliance,
reporting, and auditing.
Non -Major Funds. The Non -Major Governmental Funds show a combined fund balance total of $29.3 million, an
increase of $4.4 million. These are the traditional MTA Local Return Funds, State Gas Tax, Street Lighting, CDBG
and Home Funds, AQMD, and SBI funds that are very highly restricted.
CASH MANAGEMENT
To obtain flexibility in cash management, the city employs a pooled cash system. Under the pooled cash concept,
the City invests the cash of all funds with maturity planned to coincide with cash needs. Idle cash is invested in
certain eligible securities as constrained by law and further limited by the City's Investment Policy. The goals of the
City's Investment Policy are safety, liquidity, and yield.
12
City of Rosemead
Management's Discussion and Analysis
Year Ended June 30, 2023
CAPITAL ASSETS
The City of Rosemead's investment in capital assets for its governmental activities as of June 30, 2023, amounts
to $49.9 million (net of accumulated depreciation). This investment in capital assets includes land, buildings, and
improvements, machinery, and equipment, park facilities, roads, highways, bridges, and construction in progress.
The Public Works Department completed five major projects during the year including Rosemead Park Restroom
Renovation, Sidewalk Gap Closure — Delta Avenue, various Residential Street Resurfacing, Dog Park Project, and
Storm Water Catch Basin CPS unit upgrade. The projects were funded from a variety of sources including CDBG,
Measure M, Measure R, Grants, Clean Water, and General funds.
Additional information on the City of Rosemead's capital assets can be found in Note No. 7, found on pages 50
of the Basic Financial Statements.
Capital Assets
(net of depreciation/amortization)
DEBT ADMINISTRATION
At the end of the current fiscal year, the Successor Agency for the Rosemead Community Development
Commission had total bonded debt outstanding of $17.9. million, a decrease of $2.6 million from the prior year. Of
this amount, all of it is backed by future property tax increment revenue. For more detailed information about the
Successor's Agency Long Term Debt, please refer to Note No. 14 on pages 68-70 of the Basic
Financial Statements.
ECONOMIC FACTORS AND NEXT YEAR'S BUDGET
While the primary emphasis of this Annual Report is the financial state of the City for the fiscal year that concluded
on June 30, 2023, management demonstrated attentiveness to budget requests during the preparation of the budget
for Fiscal Year 2023-24. Furthermore, early financial planning and implementation continue to be crucial for
maintaining a healthy fund balance. The budget for Fiscal Year 2023-24 incorporated strategic financial planning
through the establishment of a Public Facilities Internal Service Fund, which serves to provide support for the
long-term maintenance, improvements, and replacements of public facilities.
The return to normalcy was aided by stimulus programs; however, the economic recovery was accompanied by
elevated levels of inflation. Local economic conditions in Rosemead remain influenced by the repercussions of
inflation.
In addition to the federal funds already received from the American Rescue Plan Act, the City will continue to pursue
federal and state assistance. Staff remains ready to recommend adjustments to revenues and expenditures as
events unfold and is committed to providing the highest quality of services given the resources available.
1191
Governmental Activities
2023
2022
Land
$ 4,859,188
$ 4,417,104
Buildings
13,348,093
13,355,341
Improvements otherthan buildings
2,870,771
2,953,497
Machinery and equipment
97,988
59,173
Autos and trucks
195,735
170,113
Furniture and office equipment
7,975
10,790
Infrastructure
26,926,895
25,048,535
Construction in progress
1,577,712
1,443,958
Right -to -use lease/subscriptions
369,857
488,371
Total
$ 50,254,214
$ 47,946,882
DEBT ADMINISTRATION
At the end of the current fiscal year, the Successor Agency for the Rosemead Community Development
Commission had total bonded debt outstanding of $17.9. million, a decrease of $2.6 million from the prior year. Of
this amount, all of it is backed by future property tax increment revenue. For more detailed information about the
Successor's Agency Long Term Debt, please refer to Note No. 14 on pages 68-70 of the Basic
Financial Statements.
ECONOMIC FACTORS AND NEXT YEAR'S BUDGET
While the primary emphasis of this Annual Report is the financial state of the City for the fiscal year that concluded
on June 30, 2023, management demonstrated attentiveness to budget requests during the preparation of the budget
for Fiscal Year 2023-24. Furthermore, early financial planning and implementation continue to be crucial for
maintaining a healthy fund balance. The budget for Fiscal Year 2023-24 incorporated strategic financial planning
through the establishment of a Public Facilities Internal Service Fund, which serves to provide support for the
long-term maintenance, improvements, and replacements of public facilities.
The return to normalcy was aided by stimulus programs; however, the economic recovery was accompanied by
elevated levels of inflation. Local economic conditions in Rosemead remain influenced by the repercussions of
inflation.
In addition to the federal funds already received from the American Rescue Plan Act, the City will continue to pursue
federal and state assistance. Staff remains ready to recommend adjustments to revenues and expenditures as
events unfold and is committed to providing the highest quality of services given the resources available.
1191
City of Rosemead
Management's Discussion and Analysis
Year Ended June 30, 2023
The City has maintained its strong financial position through prudent and sound fiscal management and will continue
to monitor key economic indicators, sources of revenues, and spending levels as part of its sound conservative
fiscal approach.
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the City of Rosemead's finances for all those with
an interest in the government's finances. Questions concerning any of the information provided in this report or
requests for additional financial information should be addressed to:
Finance Director
8838 East Valley Boulevard
Rosemead, California 91770.
14
Basic Financial Statements
THIS PAGE INTENTIONALLY LEFT BLANK
CITY OF ROSEMEAD, CALIFORNIA
Statement of Net Position
June 30, 2023
Liabilities
Accounts payable
Governmental
Accrued liabilities
Activities
Assets:
9,796,971
Cash and investments
$ 75,493,646
Receivables:
572,976
Accounts receivable
1,482,876
Notes and loans
3,669,277
Interest receivable
565,713
Leases
185,787
Prepaid costs
73,929
Due from other governments
4,325,751
Capital assets, not being depreciated
6,436,900
Capital assets, net of depreciation/amortization
43,817,314
Net pension asset
326,379
Total Assets
136,377,572
Deferred Outflows of Resources:
26,004,396
Deferred outflows related to pensions
4,725,967
Deferred outflows related to OPEB
655,363
Total Deferred Outflows of Resources
5,381,330
Liabilities
Accounts payable
3,263,685
Accrued liabilities
283,789
Unearned revenue
9,796,971
Retentions payable
125,883
Deposits payable
572,976
Due to other governments
426
Noncurrent liabilities:
13,417,633
Due within one year:
34,915,640
Compensated absences
358,076
Leases, SBITAs
139,415
Due in more than one year:
Compensated absences
278,995
Leases, SBITAs
251,738
Net pension liability
10,099,523
Net OPEB liability
832,919
Total Liabilities
26,004,396
Deferred Inflows of Resources:
Deferred inflows related to pensions
743,696
Deferred inflows related to OPEB
350,810
Deferred inflows related to leases
185,787
Total Deferred Inflows of Resources
1,280,293
Net Position:
Net Investment in capital assets
49,863,061
Restricted:
Community services
4,523,845
Low and moderate income housing
452,876
Public works
10,974,779
Pension
326,379
Capital projects
13,417,633
Unrestricted
34,915,640
Total Net Position
$ 114,474,213
The notes to financial statements are an integral part of this statement.
15
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CITY OF ROSEMEAD, CALIFORNIA
Statement of Activities
For the Year Ended June 30, 2023
Net(Expenses)
Revenues and
Changesin
Program Revenues Net Position
Operating Capital
Charges for Contributions Contributions Governmental
Expenses Services and Grants and Grants Activities
Functions/Programs
Taxes:
Property taxes, levied for general purpose
11,750,041
Governmental Activities:
7,369,300
Transient occupancy taxes
2,312,408
Franchise taxes
1,689,248
General government
$ 4,916,281
$ 360,764
$ 1,632,235
$ 118,740 $
(2,804,542)
Public safety
10,824,136
726,754
4,974,166
1,250,248
(3,872,968)
Community development
3,679,872
4,695,490
2,873,844
-
3,889,462
Parks and recreation
3,444,775
924,014
1,268,670
-
(1,252,091)
Public works
10,471,184
3,695,897
4,649,449
627,467
(1,498,371)
Interest on long-term debt
32,275
-
-
-
(32,275)
Total Governmental Activities
$ 33,368,523
$ 10,402,919
$ 15,398,364
$ 1,996,455
(5,570,785)
General Revenues:
Taxes:
Property taxes, levied for general purpose
11,750,041
Sales taxes
7,369,300
Transient occupancy taxes
2,312,408
Franchise taxes
1,689,248
Othertaxes
113,656
Use of money and property
2,110,332
Other
266,577
Total General Revenues
25,611,562
Change in Net Position
20,040,777
Net Position, Beginning of Year
94,433,436
Net Position, End of Year
$ 114,474,213
The notes to financial statements are an integral part of this statement.
17
CITY OF ROSEMEAD, CALIFORNIA
Balance Sheet
Governmental Funds
June 30, 2023
Assets:
Cash and investments
Receivables:
Accounts receivable
Notes and loans
Accrued interest
Leases
Prepaid costs
Due from other governments
Due from other funds
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable
Accrued liabilities
Unearned revenues
Deposits payable
Due to other governments
Due to other funds
Retentions payable
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenues
Related to leases
Total Deferred Inflows of Resources
Fund Balances:
Nonspendable:
Notes and loans
Prepaid costs
Restricted:
Community services
Low and moderate income housing
Public works
Capital projects
Committed:
Capital projects
Reserve contingency
Assigned:
Building maintenance
Tree in lieu
Unassigned (deficit)
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
$ 1,436,064 $ 3,685 $ - $ -
259,596 - 5,173 -
- 77,454 7,366,734 2,352,783
526,311 - - -
426 - -
- 1,277,434 - -
53,446 -
2,222,397 1,412,019 7,371,907 2,352,783
389,061 1,415,933 -
185,787 -
574,848 1,415,933 -
277,892
73,929
980,675 - -
14,020,258 - -
71,617 - -
61,331 - -
16,944,731 (1,412,019) -
32,430,433 (1,412,019) -
$ 35,227,678 $ 1,415,933 $ 7,371,907 $ 2,352,783
The notes to financial statements are an integral part of this statement.
18
Special
Revenue Funds
City Grants
American
General
Fund
Rescue Plan SLFRF
$ 29,587,808
$ -
$ 7,371,907 $ 2,352,783
1,456,226
-
- -
277,892
-
- -
363,137
-
- -
165,787
- -
73,929
-
- -
1,828,154
1,415,933
- -
1,454,745
-
-
$ 35,227,678
$ 1,415,933
$ 7,371,907 $ 2,352,783
$ 1,436,064 $ 3,685 $ - $ -
259,596 - 5,173 -
- 77,454 7,366,734 2,352,783
526,311 - - -
426 - -
- 1,277,434 - -
53,446 -
2,222,397 1,412,019 7,371,907 2,352,783
389,061 1,415,933 -
185,787 -
574,848 1,415,933 -
277,892
73,929
980,675 - -
14,020,258 - -
71,617 - -
61,331 - -
16,944,731 (1,412,019) -
32,430,433 (1,412,019) -
$ 35,227,678 $ 1,415,933 $ 7,371,907 $ 2,352,783
The notes to financial statements are an integral part of this statement.
18
CITY OF ROSEMEAD, CALIFORNIA
Balance Sheet
Governmental Funds
June 30, 2023
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable
Other
Total
Accrued liabilities
Governmental
Governmental
Unearned revenues
Funds
Funds
Assets:
46,665
572,976
Cash and investments
$ 27,026,807
$ 66,339,305
Receivables:
177,311
1,454,745
Accounts receivable
25,660
1,481,886
Notes and loans
3,391,385
3,669,277
Accrued interest
197,600
560,737
Leases
-
185,787
Prepaid costs
-
73,929
Due from other governments
1,081,664
4,325,751
Due from other funds
-
1,454,745
Total Assets
$ 31,723,116
$ 78,091,417
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable
$ 1,823,936
$ 3,263,685
Accrued liabilities
19,020
283,789
Unearned revenues
-
9,796,971
Deposits payable
46,665
572,976
Due to other governments
-
426
Due to other funds
177,311
1,454,745
Retentions payable
72,437
125,883
Total Liabilities
2,139,369
15,498,475
Deferred Inflows of Resources:
Unavailable revenues
313,687
2,118,681
Related to leases
-
185,787
Total Deferred Inflows of Resources
313,687
2,304,468
Fund Balances:
Nonspendable:
Notes and loans
-
277,892
Prepaid costs
-
73,829
Restricted:
Community services
4,523,645
4,523,845
Low and moderate income housing
452,876
452,876
Public works
10,974,779
10,974,779
Capital projects
13,417,633
13,417,633
Committed:
Capital projects
-
980,675
Reserve contingency
-
14,020,258
Assigned:
Building maintenance
-
71,617
Tree in lieu
-
61,331
Unassigned (deficit)
(99,073)
15,433,639
Total Fund Balances
29,270,060
60,288,474
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
$ 31,723,116
$ 78,091,417
The notes to financial statements are an integral part of this statement.
19
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CITY OF ROSEMEAD, CALIFORNIA
Reconciliation of the Balance Sheet of Governmental Funds
To the Statement of Net Position
June 30, 2023
Amounts reported for governmental activities in the statement of net position are different because:
Total fund balances - governmental funds $ 60,288,474
Capital assets used in governmental activities are not financial resources and,
therefore, are not reported in the funds. 50,192,808
Long-term liabilities are not due and payable in the current period, and
therefore, are not reported in the funds:
Compensated absences $ (637,071)
SBITAs (11,573)
Leases (379,580) (1,028,224)
Governmental funds report all pension contributions as expenditures; however,
in the statement of activities, the excess/deficiency of the total pension liability
over/under the plan fiduciary net position is reported as a net pension liability/asset.
CalPERS Miscellaneous Plan net pension liability (10,099,523)
PARS Retirement Enhancement Plan net pension asset 326,379 (9,773,144)
Pension -related deferred outflows of resources that have not been included as
financial uses in the governmental fund activity are as follows:
Contributions made after the actuarial measurement date
Changes in assumptions
Difference between expected and actual experiences
Net difference between projected and actual earnings on plan investments
Adjustments due to differences in proportions
Difference in proportionate share
Other post -employment-related deferred outflows of resources that have not been
included as financial uses in the governmental fund activity
Pension -related deferred inflows of resources that have not been included as
financial resources in the governmental fund activity
Governmental funds report all other post -employment benefits contributions as
expenditures, however, in the statement of net position, the excess of the total
other post -employment benefits asset over the plan fiduciary net position is
reported as a net other post -employment benefits liability
Other post -employment-related deferred inflows of resources that have not been
included as financial resources in the governmental fund activity are as follows:
Revenues reported as unavailable revenue in the governmental funds are recognized
in the statement of activities.
Internal service funds are used by management to charge the costs of certain
activities, such as equipment and technology replacement, to individual funds.
The assets and liabilities of the internal service funds must be added to the
statement of net position.
Net Position of Governmental Activities
The notes to financial statements are an integral part of this statement.
21
1,172,969
1,034,907
336,291
2,100,096
26,152
55,552
4,725,967
655,363
(743,696)
(832,919)
(350,810.00)
2,118,681
9,221,713
$ 114,474,213
CITY OF ROSEMEAD, CALIFORNIA
Statement of Revenues,
Expenditures and Changes in Fund Balances
Governmental Funds
For the Year Ended June 30, 2023
Revenues:
Taxes
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Developer participation
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety
Community development
Parks and recreation
Public works
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
Special Revenue Funds
City Grants American
General Fund Rescue Plan SLFRF
$ 23,039,365 $
4,514,893 -
580,020 334,840
1,102,835 -
1,432,238 -
594,978
340,931 7,647,217
262,186 - - -
31,526,515 334,840 340,931 7,647,217
4,787,316 - 160,179 -
10,860,001 - - -
2,230,699 - - -
3,277,024 - - -
3,954,745 36,961 180,752 -
1,361,626 1,683,236 - 248,917
76,457
2,780 -
26,550,648 1,720,197 340,931 248,917
Excess (Deficiency) of Revenues over Expenditures 4,975,867 (1,385,357)
Other Financing Sources (Uses):
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances (Deficit), Beginning of Year
Fund Balances (Deficit), End of Year
7,398,300
(8,500,000)
(1,101,700)
3,874,157 (1,385,357)
- 7,398,300
(7,398,300)
(7,398,300)
28,556,266 (26,662) - -
$ 32,430,433 $ (1,412,019) $ $
The notes to financial statements are an integral part of this statement.
22
CITY OF ROSEMEAD, CALIFORNIA
Statement of Revenues,
Expenditures and Changes in Fund Balances
Governmental Funds
For the Year Ended June 30, 2023
Revenues:
Taxes
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Developer participation
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety
Community development
Parks and recreation
Public works
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances (Deficit), Beginning of Year
Fund Balances (Deficit), End of Year
Other Total
Governmental Governmental
Funds Funds
$ 195,288
$ 23,234,653
-
4,514,893
10, 415, 239
19, 318, 247
523,060
1,625,895
451,008
1,883,246
-
594,978
350,618
350,618
4,391
266,577
11,939,604 51,789,107
120,492
62,251
1,495,090
79,802
3,413,903
2,363,510
7,535,048
5,067,987
10,922,252
3,725,789
3,356,826
7,586,361
5,657,289
76,457
2,780
36,395,741
4,404,556 15,393,366
- 7,398,300
(15,898,300)
(8,500,000)
4,404,556 6,893,366
24,865,504 53,395,108
$ 29,270,060 $ 60,288,474
The notes to financial statements are an integral part of this statement.
0491
CITY OF ROSEMEAD, CALIFORNIA
Reconciliation of the Statement of Revenues, Expenditures,
And Changes in Fund Balances of Governmental Funds
To the Statement of Activities
For the Year Ended June 30, 2023
Amounts reported for governmental activities in the statement of activities are different because:
Net change in fund balances - total governmental funds $ 6,893,366
Governmental funds report capital outlays as expenditures. However, in the
statement of activities, the cost of these assets is allocated over their estimated
useful lives and reported as depreciation expense. This is the amount by which
capital outlays exceeded depreciation expense in the current period.
Capital outlay $ 4,900,939
Depreciation/amortization (2,709,442) 2,191,497
Bonds and other debt proceeds provide current financial resources to governmental funds
but issuing debt increases long-term liabilities in the Statement of Net Position.
Repayment of bond and other debt principal is an expenditure in the governmental funds,
but repayment reduces long-term liabilities in the Statement of Net Position. Also,
governmental funds report the effect of premiums, discounts, and other similar items when
debt is first issued, whereas these amounts are deferred and amortized in the Statement of Activities. 179,663
The net effect of various miscellaneous transactions involving capital assets (i.e. sales,
trade-ins, and donations) is to decrease net position.
(29,496)
Some expenses reported in the Statement of Activities do not require the use of current financial resources
and, therefore, are not reported as expenditures in the governmental funds.
Compensated absences 35,381
Changes in pension liabilities and related deferred outflows and inflows of resources 619,672
Changes in OPEB liabilities and related deferred outflows and inflows of resources 20,649
675,702
Revenues reported as unavailable revenue in the governmental funds are
recognized in the statement of activities. These are included in the operating
contributions and miscellaneous income in the statement of activities.
1,620,194
Internal service funds are used by management to charge the costs of certain
activities, such as equipment and technology replacement, to individual funds.
The net revenues of the internal service funds are reported with governmental
activities.
8,509,851
Change in Net Position of Governmental Activities $
20,040,777
The notes to financial statements are an integral part of this statement.
24
CITY OF ROSEMEAD, CALIFORNIA
Statement of Net Position
Proprietary Funds
June 30, 2023
Governmental
Activities
Internal
Service Funds
Assets:
Current Assets:
Cash and investments
$ 9,154,341
Receivables:
Interest receivable
4,976
Total Current Assets
9,160,307
Noncurrent Assets:
Capital assets, net of accumulated depreciation
61,406
Total Noncurrent Assets
61,406
Total Assets
9,221,713
Net Position:
Invested in capital assets 61,406
Unrestricted 9,160, 307
Total Net Position $ 9,221,713
The notes to financial statements are an integral part of this statement.
25
CITY OF ROSEMEAD, CALIFORNIA
Statement of Revenues, Expenses
And Changes in Fund Net Position
Proprietary Funds
For the Year ended June 30, 2023
Nonoperating Revenues:
Governmental
Interest revenue
Activities
Total Nonoperating Revenues
Internal
Income (Loss) Before Transfers
Service Funds
Operating Expenses:
8,500,000
Contractual services
$ 871
Depreciation expense
1,521
Total Operating Expenses
2,392
Operating Loss
(2,392)
Nonoperating Revenues:
Interest revenue
12,243
Total Nonoperating Revenues
12,243
Income (Loss) Before Transfers
9,851
Transfers in
8,500,000
Change in Net Position
8,509,851
Net Position, Beginning of the Year
711,862
Net Position, End of the Year
$ 9,221,713
The notes to financial statements are an integral part of this statement.
P11
CITY OF ROSEMEAD, CALIFORNIA
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2023
Cash Flows from Operating Activities:
Cash paid to suppliers for goods and services
Net Cash Used by Operating Activities
Cash Flows from Non -Capital
Financing Activities:
Cash transfers in
Net Cash provided by Non -Capital Financing Activities
Cash Flows from Capital
and Related Financing Activities:
Acquisition and construction of capital assets
Net Cash Used by Capital and Related Financing Activities
Cash Flows from Investing Activities:
Investment earnings
Net Cash Provided by Investing Activities
Net Increase in Cash and Cash Equivalents
Cash and Cash Equivalents, Beginning of the Year
Cash and Cash Equivalents, End of the Year
Reconciliation of Operating Loss to Net Cash
Used by Operating Activities:
Operating loss
Adjustments to reconcile operating loss to
net cash used by operating activities:
Depreciation
Increase in accounts receivable
Total Adjustments
Net Cash Used by Operating Activities
The notes to financial statements are an integral part of this statement.
27
Governmental
Activities
Internal
Service Funds
$ (1,861)
(1,861)
8,500,000
8,500,000
(58,823)
(58,823)
8,855
8,855
8,448,171
706,170
$ 9,154,341
$ (2,392)
1,521
(990)
531
$ (1,861)
CITY OF ROSEMEAD, CALIFORNIA
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2023
Assets:
Cash and investments
Receivables:
Notes and loans
Interest receivable
Prepaid costs
Restricted cash and investments with fiscal agents
Total Assets
Deferred Outflows of Resources:
Deferred charge on refunding
Total Deferred Outflows of Resources
Liabilities:
Accrued interest
Deferred revenue
Due to external parties/other agencies
Long-term liabilities:
Bonds payable, due within one year
Bonds payable, due in more than one year
Total Liabilities
Net Position (Deficit):
Restricted for the dissolution
of the former Redevelopment Agency
Total Net Position (Deficit)
Private -Purpose
Trust Fund
Successor
Agency
4,611,041
444,598
24,453
107,674
1,123,647
6,311,413
124,013
124,013
198,547
243,284
255,577
2,423,099
16,501,148
19,621,655
(13,186,229)
$ (13,186,229)
The notes to financial statements are an integral part of this statement.
28
CITY OF ROSEMEAD, CALIFORNIA
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2023
Additions:
Taxes
Interest earnings
Total Additions
Deductions:
Administrative expenses
Interest expense
Contributions to other governments
Total Deductions
Change in Net Position
Net Position (Deficit), Beginning of Year
Net Position (Deficit), End of Year
Private -Purpose
Trust Fund
Successor
Agency
$ 2,801,429
61,787
2,863,216
111,735
795,245
520,694
1,427,674
1,435,542
(14,621,771)
$ (13,186,229)
The notes to financial statements are an integral part of this statement.
29
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30
Notes to the
Financial Statements
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CITY OF ROSEMEAD
Notes to the Financial Statements
June 30, 2023
Note 1:
Summary of Significant Accounting Policies.........................................................................................32
a. Reporting Entity
b. Basis of Accounting and Measurement Focus
c. Major and Fiduciary Fund Types
d. Investments
e. Cash Equivalents
f. Capital Assets
g. Compensated Absences
h. Prepaid Items
i. Fund Balance
j. Use of Estimates
k. Pension Plans
I. Other Post -Employment Benefit Plans (OPEB)
m. Property Taxes
n. Deferred Outflows and Deferred Inflows of Resources
o. Leases
p. Subscription -Based
q. Changes in Accounting
Note 2:
Stewardship, Compliance, and Accountability......................................................................................43
a. Deficit Fund Balances/Net Position
b. Budgetary
Note3:
Cash and Investments..........................................................................................................................44
Note4:
Receivables...........................................................................................................................................46
Note 5:
Interfund Receivable, Payable and Transfers.......................................................................................48
Note6:
Leases and Subscription.......................................................................................................................48
Note7:
Capital Assets.......................................................................................................................................50
Note8:
Compensated Absences.......................................................................................................................51
Note9:
Risk Management.................................................................................................................................51
a. Description of Self -Insurance Pool Pursuant to Joint Powers Agreement
b. Primary Self -Insurance Programs of the Authority
c. Purchased Insurance
d. Adequacy of Protection
Note 10:
Defined Benefit Pension Plans.............................................................................................................52
a. Aggregate Information on all Defined Benefit Pension Plans
b. Defined Benefit Pension Plan — CalPERS
c. PARS Retirement Enhancement Plan
Note 11:
Defined Contribution Pension Plan.......................................................................................................63
Note 12:
Post -Employment Benefit Plan.............................................................................................................63
Note 13:
Commitments and Contingencies.........................................................................................................68
Note14:
Successor Agency................................................................................................................................68
a. Cash and Investments
b. Long -Term Debt
c. Pledged Revenue
Note15:
Subsequent Events...............................................................................................................................70
31
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32
CITY OF ROSEMEAD
Notes to the Financial Statements
June 30, 2023
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Enti
The City of Rosemead, California, ("the City") was incorporated in August 1959 under the general laws of the
State of California. The City operates under an elected Council/City Manager form of government. It provides a
broad range of services to its residents, including general government, public safety, streets, sanitation and health,
cultural and park facilities, and social services.
Many of the functions often provided by municipal government are, in the City, provided by special districts.
Examples of some of these special districts, which usually encompass areas larger than the City itself, are the
Fire Protection District, the Library District, and the County Flood Control District. Certain other governmental
functions are paid for by the City but performed by a variety of other public and private agencies under contract.
Some of the contracts now in effect are for police, information technology, and building and safety.
The accounting policies of the City conform to generally accepted accounting principles as applicable to
governments. As required by generally accepted accounting principles, these financial statements present the
government and its component units, which are entities for which the government is considered to be financially
accountable. The City is considered to be financially accountable for an organization if the City appoints a voting
majority of that organization's governing body and the City is able to impose its will on that organization or there is
a potential for that organization to provide specific financial benefits to or impose specific financial burdens on the
City. The City is also considered to be financially accountable if an organization is fiscally dependent
(i.e., it is unable to adopt its budget, levy taxes, set rates or charges, or issue bonded debt without approval from
the City). In certain cases, other organizations are included as component units if the nature and significance of
their relationship with the City are such that their exclusion would cause the City's financial statements to be
misleading or incomplete.
Based upon the above criteria, the blended component units of the City are the Rosemead Financing Authority
(the Authority) and the Rosemead Housing Development Corporation (the Corporation).
Rosemead Financing Authority
The Authority provides for the financing or refinancing of public capital improvements and working capital
requirements of local agencies that enter into contractual arrangements with the Authority. Separate financial
statements are not prepared.
Rosemead Housing Development Corporation
The Corporation accounts for the construction, financing and operations of low and moderate -income housing. It is
a California nonprofit benefit corporation organized under Section 501(c)(3) of the Internal Revenue Code. The
activities of the Corporation are recorded in the RHDC special revenue fund. Separately issued financial statements
of the Corporation can be obtained from the Finance Department.
Since the governing bodies of the aforementioned entities are substantially the same as the City's governing board
for these component units, and a financial benefit or burden relationship exists for all of the City's component units,
these are all considered to be blended component units. Blended component units, although legally separate
entities, are, in substance, part of the City's operations. Therefore, data from these units are reported with the funds
of the primary government, the City.
33
CITY OF ROSEMEAD
Notes to the Financial Statements
June 30, 2023
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
B. Basis of Accounting and Measurement Focus
The basic financial statements of the City are composed of the following:
• Government -wide financial statements
• Fund financial statements
• Notes to the basic financial statements
Financial reporting is based upon all Governmental Accounting Standards Board pronouncements.
Government -wide Financial Statements
Government -wide financial statements display information about the reporting government as a whole, except for
its fiduciary activities. These statements include separate columns forthe governmental and business -type activities
of the primary government (including its blended component units), as well as its discretely presented component
units. The City of Rosemead has no business -type activities and no discretely presented component units.
Eliminations have been made in the Statement of Activities so that certain allocated expenses are recorded only
once (by function to which they were allocated). However, general governmental expenses have not been allocated
as indirect expenses to the various functions of the City.
Government -wide financial statements are presented using the economic resources measurement focus and the
accrual basis of accounting. Under the economic resources measurement focus, all (both current and long-term)
economic resources and obligations of the reporting government are reported in the government -wide financial
statements. Basis of accounting refers to when revenues and expenditures are recognized in the accounts and
reported in the financial statements. Under the accrual basis of accounting, revenues, expenses, gains, losses,
assets, and liabilities resulting from exchange and exchange -like transactions are recognized when the exchange
takes place. Revenues, expenses, gains, losses, assets, and liabilities resulting from nonexchange transactions
are recognized in accordance with generally accepted accounting principles.
Program revenues include charges for services, special assessments, and payments made by parties outside of
the reporting government's citizenry if that money is restricted to a particular program. Program revenues are netted
with program expenses in the statement of activities to present the net cost of each program.
Amounts paid to acquire capital assets are capitalized as assets in the government -wide financial statements, rather
than reported as an expenditure. Proceeds of long-term debt are recorded as a liability in the govemment-wide
financial statements, rather than as other financing source. Amounts paid to reduce long-term indebtedness of the
reporting government are reported as a reduction of the related liability, rather than as an expenditure.
Fund Financial Statements
The underlying accounting system of the City is organized and operated on the basis of separate funds, each of
which is considered to be a separate accounting entity. The operations of each fund are accounted for with a
separate set of self -balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures
or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based
upon the purposes for which they are to be spent and the means by which spending activities are controlled.
Fund financial statements for the primary government's governmental, proprietary, and fiduciary funds are
presented afterthe government -wide financial statements. These statements display information about major funds
individually and non -major funds in the aggregate for governmental and enterprise funds. Fiduciary statements
include financial information for fiduciary funds and similar component units. Fiduciary funds of the City primarily
represent assets held by the City in custodial capacity for other individuals or organizations.
34
CITY OF ROSEMEAD
Notes to the Financial Statements
June 30, 2023
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Governmental Funds
In the fund financial statements, governmental funds are presented using the modified -accrual basis of accounting.
Their revenues are recognized when they become measurable and available as net current assets. Measurable
means that the amounts can be estimated, or otherwise determined. Available means that the amounts were
collected during the reporting period or soon enough thereafter to be available to finance the expenditures accrued
for the reporting period. The City uses a sixty-day availability period except for grants which is 120 days.
Revenue recognition is subject to the measurable and available criteria for the government funds in the fund
financial statements. Exchange transactions are recognized as revenues in the period in which they are earned
(i.e., the related goods or services are provided). Locally imposed derived tax revenues are recognized as revenues
in the period in which the underlying exchange transaction on which they are based takes place. Imposed
non-exchange transactions are recognized as revenues in the period for which they were imposed. If the period of
use is not specified, they are recognized as revenues when an enforceable legal claim to the revenues arises or
when they are received, whichever occurs first. Government -mandated and voluntary non-exchange transactions
are recognized as revenues when all applicable eligibility requirements have been met.
In the fund financial statements, governmental funds are presented using the current financial resources
measurement focus. This means that only current assets and current liabilities are generally included on
their balance sheets. The reported fund balance (net current assets) is considered to be a measure of "available
spendable resources." Governmental fund operating statements present increases (revenues and other financing
sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said
to present a summary of sources and uses of "available spendable resources" during a period.
Non-current portions of long-term receivables due to governmental funds are reported on their balance sheets in
spite of their spending measurement focus. However, special reporting treatments are used to indicate that they
should not be considered "available spendable resources," since they do not represent net current assets.
Recognition of governmental fund type revenues represented by noncurrent receivables are deferred until they
become current receivables.
Because of their spending measurement focus, expenditure recognition for governmental fund types excludes
amounts represented by noncurrent liabilities. Since they do not affect net current assets, such long-term amounts
are not recognized as governmental fund type expenditures or fund liabilities.
Amounts expended to acquire capital assets are recorded as expenditures in the year that resources were
expended, rather than as fund assets. The proceeds of long-term debt are recorded as other financing sources
rather than as a fund liability. Amounts paid to reduce long-term indebtedness are reported as fund expenditures.
When both restricted and unrestricted resources are combined in a fund, expenditures are considered to be paid
first from restricted resources, and then from unrestricted resources.
Proprietary Funds
Proprietary fund financial statements include a Statement of Net Position, a Statement of Revenues, Expenses and
Changes in Net Position, and a Statement of Cash Flows for all proprietary funds.
Proprietary funds are accounted for using the "economic resources" measurement focus and the accrual basis of
accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the Statement of
Net Position. The Statement of Revenues, Expenses, and Changes in Net Position presents increases (revenue)
and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recognized in
the period in which they are earned while expenses are recognized in the period in which liability is incurred.
Operating revenues in the proprietary funds are those revenues that are generated from the primary operations of
the fund. All other revenues are reported as nonoperating revenues. Operating expenses are those expenses that
are essential to the primary operations of the fund. All other expenses are reported as nonoperating expenses.
W
CITY OF ROSEMEAD
Notes to the Financial Statements
June 30, 2023
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Fiduciary Funds
The City maintains one fiduciary fund type, a private -purpose trust fund which uses the economic resources
measurement focus and the accrual basis of accounting.
C. Major and Fiduciary Fund Types
The City's major governmental funds are as follows:
• General Fund — Accounts for all financial resources except those required to be accounted for in another fund.
These resources are devoted to financing the general services that the City performs for its residents.
• City Grants Fund —Accounts for the City's portion of the funds received through various state, local, and federal
grants not specifically noted above.
• American Rescue Plan Fund — Accounts for the City's portion of the funds received through the
American Rescue Plan Act. The Act provides a total of $250 billion in assistance to states, counties,
municipalities, territories, and tribal governments to cover expenses, make up for lost revenue and east the
overall economic impact from the COVID-19 pandemic.
• State and Local Fiscal Recovery Fund (SLFRF)— Accounts for the City's portion of the funds received through
the American Rescue Plan Act that have been approved for election of the Treasury's revenue loss application.
These funds are restricted for general governmental services and various Council approved City projects
available to be spent through December 31, 2026.
The City's Fiduciary Funds are as follows:
• Private -purpose Trust Fund— Accounts forthe activity of the Successor Agency to the Community Development
Commission of the City of Rosemead.
Additionally, the City reports:
• Special Revenue Funds — Account for and report the proceeds of specific revenue sources that are restricted
or committed to expenditure for specified purposes other than debt service or capital projects. All are currently
reported in nonmajor governmental funds.
• Capital Proiects Fund — Account for and report the proceeds of specific revenue sources that are restricted or
committed to expenditure for capital projects.
• Internal Service Funds — Account for the financing of goods and services provided by one department to other
departments on a cost reimbursement basis. The City has internal service funds for equipment replacement,
technology replacement, and infrastructure replacement.
D. Investments
For financial reporting purposes, investments are adjusted to their fair value whenever the difference between fair
value and the carrying amount is material.
Changes in fair value that occur during a fiscal year are recognized as investment income reported for that fiscal
year. Investment income includes interest earnings, changes in fair value, and any gains or losses realized upon
the liquidation or sale of investments.
36
CITY OF ROSEMEAD
Notes to the Financial Statements
June 30. 2023
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
The City pools cash and investments of all funds, except for assets held by fiscal agents. Each fund's share in this
pool is displayed in the accompanying financial statements as cash and investments. Investment income earned
by the pooled investments is allocated to the various funds based on each fund's average cash and investment
balance.
E. Cash Equivalents
For purposes of the statement of cash flows, cash equivalents are defined as short-term, highly liquid investments
that are both readily convertible to known amounts of cash or so near their maturity that they present insignificant
risk of changes in value because of changes in interest rates. Cash equivalents also represent the proprietary funds'
share in the cash and investment pool of the City of Rosemead. Cash equivalents have an original maturity date of
three months or less from the date of purchase. For purposes of the statement of cash flows, the entire balance of
cash and investments on the combined balance sheet for the internal service fund is considered cash and cash
equivalents.
F. Caoital Assets
Capital assets (including infrastructure) are recorded at cost where historical records are available and at an
estimated historical cost where no historical records exist. Donated capital assets, donated works of art and similar
items and capital assets received in a service concession arrangement are recorded at acquisition value at the
point of acquisition. Generally, capital asset purchases in excess of $10,000 are capitalized if they have an expected
useful life of one or more years.
Capital assets include public domain (infrastructure) general capital assets consisting of certain improvements
including roads, streets, sidewalks, medians, and storm drains.
Capital assets used in operations are depreciated or amortized over their estimated useful lives using the
straight-line method in the government -wide financial statements and in the fund financial statements of the internal
service funds. Depreciation/amortization is charged as an expense against operations and accumulated
Depreciation/amortization is reported on the respective statement of Net Position.
The following schedule summarizes capital asset useful lives:
Building improvements 15-50 years
Improvements other than buildings 3-15 years
Machinery and equipment 7 years
Autos and trucks 5 years
Furniture and office equipment 7 years
Lease assets 3-7 years
Subscription assets 3-5 years
Infrastructure:
Bridges 50 years
Sewer system and storm drain system 50-100 years
Medians and sidewalks 40 years
Traffic Signals 30 years
Streets 20 years
19YA
CITY OF ROSEMEAD
Notes to the Financial Statements
June 30, 2023
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
G. Compensated Absences
Full-time employees earn from 10 to 16 days per year, depending upon their length of employment. Accruals are
capped at two years the employee's annual accrual rate. Management employees also earn either 60 or 80 hours
of administrative leave based on level of management. Vacation and administrative leave hours are payable to
employees at the time used or upon termination of employment. These hours are accrued when incurred in the
government -wide level financial statements.
In accordance with generally accepted accounting principles, a liability is recorded for unused vacation and similar
compensatory leave balances since the employees' entitlement to these balances is attributable to services already
rendered and it is probable that virtually all of these balances will be liquidated by either paid time off or payments
upon termination or retirement. All vacation is accrued when incurred in the government -wide level financial
statements
All unused vacation and administrative leave hours are accrued when incurred in the government -wide level
financial statements. A current liability is accrued in the governmental funds for employee leave benefits expected
to be paid from expendable, available financial resources as of the balance sheet date. Compensated absences
are primarily liquidated by the General Fund.
H. Prepaid Items
Prepaid items are reported in the governmental funds under the consumption method and are offset by a
nonspendable designation in fund balance to indicate that they are not available for appropriation and are not
expendable financial resources.
I. Fund Balance
The following classifications describe the relative strength of the spending constraints placed on the purposes for
which resources can be used:
• Nonspendable — This includes amounts that cannot be spent because they are either not in spendable form or
must be maintained intact pursuant to legal or contractual requirements, such as prepaids, inventory, or
endowments.
• Restricted —This includes amounts that can be spent only for specific purposes imposed by creditors, grantors,
contributors, or laws and regulations of other governments through enabling litigations.
• Committed — This includes amounts that can be used only for the specific purposes pursuant to constraints
imposed by formal action of the City's highest authority, the City Council. The formal action that is required to
be taken to establish, modify, or rescind a fund balance commitment is Council resolution.
• Assigned — This includes amounts that are designated by the City Council, City Manager, or Finance Director
for specific purposes and do not meet the criteria to be classified as restricted or committed.
• Unassigned — This is the residual classification that includes all spendable amounts not contained in the other
classifications. The General Fund is the only fund that reports a positive unassigned fund balance. In other
governmental funds, it is not appropriate to report a positive unassigned fund balance amount. However, in
governmental funds other than the General Fund, if expenditures incurred for specific purposes exceed
amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a negative
unassigned fund balance in that fund.
38
CITY OF ROSEMEAD
Notes to the Financial Statements
June 30, 2023
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
When both restricted and unrestricted resources are available for use when an expenditure is incurred, it is the
City's policy to use restricted resources first, then unrestricted resources as they are needed. It is the City's policy
to consider committed amounts as being reduced first, followed by assigned amounts, and then unassigned
amounts when expenditures are incurred for purposes for which amounts in any of those unrestricted fund balance
classifications could be used.
J. Use of Estimates
The preparation of financial statements in conformity with
management to make estimates and assumptions that
Accordingly, actual results could differ from those estimates.
K. Pension Plans
generally accepted accounting principles requires
affect certain reported amounts and disclosures.
For purposes of measuring the net pension liability, deferred outflows and inflows of resources related to pensions,
and pension expense, information about the fiduciary net position and additions to/deductions from the fiduciary net
position have been determined on the same basis as they are reported by the Plan Administrators. For this purpose.
benefit payments (including refunds of employee contributions) are recognized when currently due and payable in
accordance with the benefit terms. Investments are reported at fair value. CalPERS audited financial statements
are publicly available reports that can be obtained at CaIPERS' website, at www.calpers.ca.gov. Copies of the
PARS annual financial report may be obtained from PARS, 4350 Von Karman Avenue, Suite 100, Newport Beach,
California 92660.
GASB 68 requires that the reported results must pertain to liability and asset information within certain defined
timeframes. For this report, the following timeframes are used.
CalPERS-Cost sharing Multiple -Employer Plan:
Valuation Date June 30, 2021
Measurement Date June 30, 2022
Measurement Period July 1, 2021 to June 30, 2022
PARS -Agent, Multiple Employer Plan:
Valuation Date June 30, 2022
Measurement Date June 30, 2023
Measurement Period July 1, 2022 to June 30, 2023
L. Other Post -Employment Benefit Plans (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources
related to OPEB, and OPEB expense, information about the fiduciary net position of the City's plan (OPEB Plan),
the assets of which are held by Public Agency Retirement Services (PARS), and additions to/deductions from the
OPEB Plan's fiduciary net position have been determined by an independent actuary. For this purpose, benefit
payments are recognized when currently due and payable in accordance with the benefit terms. Investments are
reported at fair value.
Generally accepted accounting principles require that the reported results must pertain to liability and asset
information within certain defined timeframes. For this report, the following time frames are used:
Valuation Date June 30, 2021
Measurement Date June 30, 2022
Measurement Period July 1, 2021 to June 30, 2022
39
CITY OF ROSEMEAD
Notes to the Financial Statements
June 30, 2023
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
M. Property Taxes
The County of Los Angeles is responsible forthe assessment, levy, and collection of property taxes for all properties
within Los Angeles County and subsequently remits the amount due to the City in installments during the year.
The County is permitted by State Law (Article XIII A of the California Constitution) to levy taxes at
one percent (1%) of full market value at the time of purchase and can increase the property's value by no more
than two percent (2%) per year. The property taxes are recorded initially in a County pool and are then allocated
to cities. Prior to the passage of Proposition 13, which established the one percent (1%) limit, Rosemead was one
of numerous cities in California that either levied no general property taxes or which levied very low rates. Because
the property tax allocation after Proposition 13 was based on the allocation prior to the proposition passage, these
"no -low cities" would not have received a portion of the 1% levy. In response, the California Legislature adopted
AB 1197 which provided these cites with a portion of the County's share of the tax levy.
The City records property taxes as revenue when received from the County, except at year-end, when property
taxes received within 60 days are accrued as revenue. Property taxes are assessed and collected each fiscal year
according to the following property tax calendar:
Lien date January 1
Levy date July 1
Due dates November 1 and February 1
Collection dates December 10 and April 10
N. Deferred Outflows and Deferred Inflows of Resources
In addition to assets, the statement of net position and balance sheet will sometimes report a separate section for
deferred outflows of resources. This separate financial statement element, deferred outflows of resources,
represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow
of resources (expense/ expenditure) until then. The City has two types of items that qualify for reporting in this
category. The items are deferred pension related items and deferred other post -employment benefits (OPER)
related items.
In addition to liabilities, the statement of net position and balance sheet will sometimes report a separate section
for deferred inflows of resources. This separate financial statement element, deferred inflows of resources,
represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow
of resources (revenue) until that time. The City has four types of items that qualify for reporting in this category. The
first item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds
report unavailable revenue from intergovernmental revenues. These amounts are deferred and recognized as an
inflow of resources in the period that the amounts become available. The other items are deferred pension related
items, deferred OPEB related items, and deferred inflows related to leases.
O. Leases
Lessee: The City is a lessee for noncancellable leases of vehicles. The City recognizes a lease liability and an
intangible right -to -use lease asset (lease asset) in the government -wide financial statements. At the commencement
of a lease, the City initially measures the lease liability at the present value of payments expected to be made during
the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The
lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or
before the lease commencement date, plus certain initial direct costs.
CITY OF ROSEMEAD
Notes to the Financial Statements
June 30, 2023
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Subsequently, the lease asset is amortized on a straight-line basis over its useful life. Key estimates and judgments
related to leases include how the City determines (1) the discount rate it uses to discount the expected lease
payments to present value, (2) lease term, and (3) lease payments.
• The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by
the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate
for leases.
• The lease term includes the noncancellable period of the lease. Lease payments included in the measurement
of the lease liability are composed of fixed payments and purchase option price that the City is reasonably
certain to exercise.
The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure
the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease
liability.
Lease assets are reported with other capital assets and lease liabilities are reported with long-term debt on the
statement of net position.
Lessor: The City is a lessor for noncancellable leases of two cell towers. The City recognizes a lease receivable
and a deferred inflow of resources in the government -wide and governmental fund financial statements.
At the commencement of a lease, the City initially measures the lease receivable at the present value of payments
expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal
portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of
the lease receivable, adjusted for lease payments received at or before the lease commencement date.
Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term.
Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected
lease receipts to present value, if applicable, (2) lease term, and (3) lease receipts.
• The City determines that the interest component of the lessor leases are not material, and therefore are
recorded with 0% interest.
• The lease term includes the noncancellable period of the lease. Lease receipts included in the measurement
of the lease receivable is composed of fixed payments from the lessee.
The City monitors changes in circumstances that would require a remeasurement of its lease, and will remeasure
the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly
affect the amount of the lease receivable.
P. Subscription -Based Information_ Technology Arrangements
The City is a subscriber for noncancellable subscriptions of information technology services. The City recognizes a
subscription liability and an intangible right -to -use subscription asset (subscription asset) in the government -wide
financial statements.
At the commencement of a subscription, the City initially measures the subscription liability at the present value of
payments expected to be made during the subscription term. Subsequently, the subscription liability is reduced by
the principal portion of subscription payments made. The subscription asset is initially measured as the initial
amount of the subscription liability, adjusted for subscription payments made at or before the subscription
commencement date, plus certain initial direct costs. Subsequently, the subscription asset is amortized on a
straight-line basis over its useful life.
41
CITY OF ROSEMEAD
Notes to the Financial Statements
June 30, 2023
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Key estimates and judgments related to subscriptions include how the City determines (1) the discount rate it uses
to discount the expected subscription payments to present value, (2) lease term, and (3) subscription payments.
• The City uses the interest rate charged by the vendor as the discount rate. When the interest rate charged by
the vendor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate
for subscriptions.
• The subscription term includes the noncancellable period of the subscription. Subscription payments included
in the measurement of the subscription liability are composed of fixed payments that the City is reasonably
certain to exercise.
The City monitors changes in circumstances that would require a remeasurement of its subscriptions and will
remeasure the subscription asset and liability if certain changes occur that are expected to significantly affect the
amount of the subscription liability.
Subscription assets are reported with other capital assets and subscription liabilities are reported with long-term
debt on the statement of net position.
Q. Changes in Accounting Principles and New GASB Pronouncements
The following Government Accounting Standards Board (GASB) pronouncements were effective for and/or early
implemented for the fiscal year ended June 30, 2023:
1. GASB Statement No. 96, Subscription -Based Information Technology Arrangements
The requirements of this Statement will improve financial reporting by establishing a definition for SBITAs and
providing uniform guidance for accounting and financial reporting for transactions that meet that definition. That
definition and uniform guidance will result in greater consistency in practice. Establishing the capitalization criteria
for implementation costs also will reduce diversity and improve comparability in financial reporting by governments.
This Statement also will enhance the relevance and reliability of a government's financial statements by requiring
a government to report a subscription asset and subscription liability for a SBITA and to disclose essential
information about the arrangement. The disclosures will allow users to understand the scale and important aspects
of a government's SBITA activities and evaluate a government's obligations and assets resulting from SBITAs.
2. GASB Statement No. 100, Accounting Changes and Error Corrections
The requirements of this Statement will improve the clarity of the accounting and financial reporting requirements
for accounting changes and error corrections, which will result in greater consistency in application in practice. In
turn, more understandable, reliable, relevant, consistent, and comparable information will be provided to financial
statement users for making decisions or assessing accountability. In addition, the display and note disclosure
requirements will result in more consistent, decision useful, understandable, and comprehensive information for
users about accounting changes and error corrections.
42
CITY OF ROSEMEAD
Notes to the Financial Statements
June 30, 2023
NOTE 2: STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
A. Deficit Fund Balances
Fund Name Fund Type Deficit Cause
Measure R CP Nonmajor Capital Projects Fund $ (99,073) (a)
City Grants Fund Major Special Revenue Fund (1,412,019) (a)
(a) Deficit due to timing differences between grant receipts and disbursements, and
is expected to be eliminated through future grant revenues.
NOTE 3: CASH AND INVESTMENTS
Cash and Investments as of June 30, 2023, consist of the following:
Cash on hand $ 3,148
Deposits with financial institutions 4,125,687
Investments 77,099,499
Total cash and investments $ 81,228,334
Investments Authorized by the California Government Code and the City's Investment Policy
The table below identifies the investment types that are authorized for the City by the California Government Code
and the City's investment policy. The table also identifies certain provisions of the California Government Code
(or the City's investment policy, if more restrictive) that address interest rate risk, credit risk, and concentration of
credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the
provisions of debt agreements of the City, rather than the general provisions of the California Government Code or
the City's investment policy.
Maximum
I nvestment
in One Issuer
None
None
5%
5%
None
None
5%
5%
5%
10%
None
$75 million
* Based on state law requirements or City investment policy requirements, whichever is more restrictive.
43
Authorized by
Maximum
Investment Types
Investment
Maximum
Percentage
Authorized by State Law
Policy
Maturity *
of Portfolio
U.S. Treasury obligations
Yes
5 years
None
U.S. agency securities
Yes
5 years
None
Bankers acceptances
Yes
180 days
40%
Commercial paper
Yes
270 days
25%
Certificates of deposit (nonnegotiable)
Yes
5 years
None
Certificates of deposit (negotiable)
Yes
5 years
30%
Repurchase agreements
Yes
1 year
None
Medium-term notes
Yes
5 years
30%
Municipal investments
Yes
5 years
10%
Money market mutual funds
Yes
WA
20%
Mortgage pass-through securities
Yes
5 years
20%
Local Agency Investment Fund
Yes
WA
None
Maximum
I nvestment
in One Issuer
None
None
5%
5%
None
None
5%
5%
5%
10%
None
$75 million
* Based on state law requirements or City investment policy requirements, whichever is more restrictive.
43
CITY OF ROSEMEAD
Notes to the Financial Statements
June 30, 2023
NOTE 3: CASH AND INVESTMENTS (CONTINUED)
Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment.
Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market
interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination
of shorter term and longer-term investments and by timing cash flows from maturities so that a portion of the portfolio
is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed
for operations.
Information about the sensitivity of the fair values of the City's investments (including investments held by bond
trustee) to market interest rate fluctuations is provided by the following table that shows the distribution of the City's
investments by maturity:
107.q1=11711
U.S. agency securities
Certificates of deposit (negotiable)
Medium-term notes
Money market mutual funds
Held by bond trustee
Local Agency Investment Fund
Total
Credit Risk
Remaining Maturity (in Months)
12 Months
Total or Less
$ 7,224,189
6,571,967
6,559,466
13,495
$ 1,239,108
481,497
13,495
13 to 36 37 to 60
Months Months
$ 1,173,161 $ 4,811,920
1,188,633 4,901,837
755,992 5,803,474
1,123,647 1,123,647
55,606,735 55,606,735
$ 77,099,499 $ 58,464,482 $ 3,117,786 $ 15,517,231
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the
investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization.
Presented below is the minimum rating required by (where applicable) the California Government Code, the City's
investment policy, or debt agreements, and the actual rating as of year-end for each investment type.
Moody's Rating_ as of Fiscal Year End
44
Minimum
Exempt or
Investment Type
Total
Legal Rating
Aaa Aa
A Not Rated
U.S. agency securities $
7,224,189
E�empt
$ 7,224,189 $ - $
- -
Certificates of deposit (negotiable)
6,571,967
Not Rated
- -
- 6,571,967
Medium-term notes
6,559,466
A
1,673,916 3,128,387
1,757,163 -
Money market mutual funds
13,495
Aaa
- -
- 13,495
Held by bond trustee
1,123,000
A
- -
- 1,123,000
Local Agency Imestment Fund
55,607,382
Not Rated
-
55,607,382
Total $
77,099,499
$
$ 8,898,105 $ 3,128,387 $
1,757,163 $ 63,315,844
44
CITY OF ROSEMEAD
Notes to the Financial Statements
June 30, 2023
NOTE 3: CASH AND INVESTMENTS (CONTINUED)
Concentration of Credit Risk
The investment policy of the City contains certain limitations on the amount that can be invested in any one issuer.
Investments in any one issuer (other than U.S. Treasury securities, mutual funds, and extemal investment pools)
that represent 5% or more of total As of June 30, 2023 the City did not have any investments in one issuer greater
than 5%.
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a
government will not be able to recover its deposits or will not be able to recover collateral securities that are in the
possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of
the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its
investment or collateral securities that are in the possession of another party. The California Government Code and
the City's investment policy do not contain legal or policy requirements that would limit the exposure to custodial
credit risk for deposits or investments, other than the following provision for deposits: The California Government
Code requires that a financial institution secure deposits made by state or local governmental units by pledging
securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the
governmental unit). The fair value of the pledged securities in the collateral pool must equal at least 110% of the
total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits
by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. As of
June 30, 2023, the City had deposits with financial institutions in excess of federal depository insurance limits by
$3,875,687 that were held in collateralized accounts. As of June 30, 2023, the Successor Agency had deposits with
financial institutions in excess of federal depository insurance limits by $4,361,041 that were held in collateralized
accounts.
Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by the California
Government Code under the oversight of the Treasurer of the State of California. The fair value of the City's
investment in this pool is reported in the accompanying financial statements at amounts based upon the City's
pro -rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that
portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are
recorded on an amortized cost basis. LAIF is not registered with the Securities and Exchange Commission and is
not rated. Deposits and withdrawals in LAIF are made on the basis of $1 and not fair value. Accordingly, the City's
investment in this pool is measured on uncategorized inputs not defined as Level 1, 2, or 3.
Fair Value Measurements
Generally accepted accounting principles establishes a fair value hierarchy that prioritizes the inputs to valuation
techniques used to measure fairvalue. This hierarchy consists of three broad levels: Level 1 inputs consist of quoted
prices (unadjusted) for identical assets and liabilities in active markets that a government can access at the
measurement date, Level 2 inputs that are observable for an asset or liability, either directly or indirectly, and Level
3 inputs have the lowest priority and consist of unobservable inputs for an asset or liability. The City's custodian
National Financial Services uses Intercontinental Exchange (ICE), Bloomberg, and Thompson Reuters to obtain
pricing information.
The City's investment in LAIF and money market mutual funds held by the bond trustee are not subject to fair market
value hierarchy valuation techniques. All other investments are valued using Level 2 inputs.
45
CITY OF ROSEMEAD
Notes to the Financial Statements
June 30. 2023
NOTE 4: RECEIVABLES
A. Notes Receivable
Loans receivable consisted of the following at June 30, 2023:
Computer Loans
San Gabriel Valley Water Co. Loan Phase I
San Gabriel Valley Water Co. Loan Phase II
Rio Hondo Community Development Co. Loan
Rio Hondo Community Development Co. Loan (275-12025)
EI Monte Cemetary Association Loan
Home Improvements
First Time Home Buyers Program
Total
Balance
Balance
June 30, 2022
Adjustments' Deletions
June 30, 2023
$ 1,530
$ - $ 1,305
$ 225
41,150
- 8,230
32,920
20,576
- 4,115
16,461
227,086
- -
227,086
-
214,615 -
214,615
3,600
- 2,400
1,200
2,622,000
- 30,430
2,591,570
585,200
585,200
$ 3,501,142
$ 214,615 $ 46,480
$ 3,669,277
'Adjustment relates to Promissory Note - March 2011 - fully forgivable ban that was erroneously omitted from prior ACFRs.
There is no fund balance impact of this ban.
1. Computer Purchase Loans
The City provides a computer purchase loan program for all full-time employees for up to $2,000 at 0% interest for
a term of 24 months. Loans are repaid through payroll deductions and are due and payable in full upon termination
or separation of employment. The outstanding balance as of June 30, 2023 is $225.
2. San Gabriel Valley Water Company Phase I
The City has an outstanding loan with the San Gabriel Valley Water Company (Phase 1) covering the installation of
water facilities on Garvey Avenue from Walnut Grove Avenue to Rosemead Place. The loan was initially made
through the Rosemead Redevelopment Agency in the amount of $356,000. On October 26, 1987, the loan was
assigned to the City of Rosemead with a balance due of $329,197. The term of the loan is 40 years at 0% interest.
Annual payments are 2.5% of the assigned loan amount with final payment due in fiscal year 2026-27. The
outstanding balance as of June 30, 2023 is $32,920.
3. San Gabriel Valley Water Company Phase 11
The City has an outstanding loan with the San Gabriel Valley Water Company (Phase 11) covering the installation
of water facilities on Garvey Avenue from Walnut Grove Avenue to Delta Avenue. The loan was initially made
through the Rosemead Redevelopment Agency in the amount of $194,400. On October 26, 1987, the loan was
assigned to the City of Rosemead with a balance due of $164,604. The term of the loan is 40 years at 0% interest.
Annual payments are 2.5% of the assigned loan amount with final payment due in fiscal year 2026-27. The
outstanding balance at June 30, 2023 is $16,461.
4. Rio Hondo Community Development Corporation
On April 27, 2010, the City Council entered into an Agreement with Rio Hondo Community Development
Corporation (RHCDC) for the production of affordable housing. The RHCDC identified a property for sale
(8628 Landis View Lane) that was as suitable for affordable housing for a total purchase price of $428,400.
46
CITY OF ROSEMEAD
Notes to the Financial Statements
June 30, 2023
NOTE 4: RECEIVABLES (CONTINUED)
The City Council approved a 0% deferred payment loan in the amount of $227,086 from HOME CHDO Set -Aside
Funds and a 0% forgivable loan by the Rosemead Community Development Commission (CDC) from the Low- and
Moderate -Income Housing Fund in the amount of $201,314. The unit was restricted as a rental property for low- to
moderate -income households and be subject to a 55 -year affordability covenant. The $227,086 City loan is due at
the end of the fifty -five-year term, while the loan from the CDC is due only in the event that the RHCDC breaches
or defaults on the provision of the Note.
5. EI Monte Cemetery
The City loaned $12,000 to the EI Monte Cemetery Association in order to finance a portion of the costs for access
road improvements at Savannah Memorial Park (California Historic Landmark No. 1046) via adoption of Resolution
No. 2013-47. The interest-free loan is to be paid in annual installments of $1,200 over a ten (10) year period. The
amount outstanding as of June 30, 2023 is $1,200.
6. Home Improvement Loans
The City used HOME funds to provide homeowners with funds for home improvements. The loans range from
$3,500 to $179,000. The loan term is 30 years, and the loan is neither assumable nor forgivable. Interest rates
range from 0% to 3%. The amount outstanding as of June 30, 2023 is $2,591,570.
7. First Time Homebuyer Programs
The City used HOME funds to provide funding to first time homebuyers to purchase housing within the
City of Rosemead. The loans range from $20,000 to $70,000. The loan term is 30 years, and the loan is neither
assumable nor forgivable. The amount outstanding as of June 30, 2023 is $585,200.
8. Rio Hondo Community Development Corporation
On April 22, 2008, the City Council entered into an Agreement with Rio Hondo Community Development
Corporation (RHCDC) for affordable housing. The RHCDC identified a property for sale (9331 Glendon Way,
Rosemead) that was suitable for affordable housing for a total purchase price of $457,899. The City Council
approved a 0% deferred payment loan in the amount of $214,615 from HOME CHDO Set Aside Funds and a 0%
forgivable loan bythe Rosemead Community Development Commission (CDC) from the Low -and Moderate -Income
Housing Fund in the amount of $243,284. The unit was restricted as a rental property for low -to moderate -income
households and was subject to a 55 -year affordability covenant. The $214,615 City loan is due until the sale of the
home, transfer of ownership or year 55, while the loan from the CDC is due only if RHCDC breaches or defaults on
the provisions of the Note.
B. Lease Receivable
The City leases two cell towers to AT&T. The terms by lease type are listed in the table below. An initial lease
receivable was recorded in the amount of $261,589. As of June 30, 2023, the value of the lease receivable and
deferred inflow of resources is $185,787. The City recognized rental revenue of $585,449 during the fiscal year
which included $41,389 related to the amortization of the deferred inflow and $544,060 for other short term leases
not included in the measurement of the lease receivable.
Governmental Activities
Lease Lease Lease
Lease Type Term Range Receivable Revenue Interest
Land - cell towers 5 years $ 185,787 $ 41,389 $
47
CITY OF ROSEMEAD
Notes to the Financial Statements
June 30, 2023
NOTE 5: INTERFUND RECEIVABLE, PAYABLE AND TRANSFERS
A. Due To/From Other Funds
Receivable Fund Payable Fund Amount
General fund City Grants fund $ 1,277,434
General fund Nonmajor governmental funds 177,311
Total $ 1,454,745
Due to/due from other funds for the year ending June 30, 2023, consisted of $1,277,434, $65,805, and $111,506
due to the General Fund from the City Grants, CDBG, and Measure R Capital funds for short-term loans made to
those funds from the General Fund resulting from deficit cash balances in those funds.
B. Interfund Transfers
Transfers in
The General Fund transferred $7,000,000, $1,000,000, and $500,000 into the Infrastructure Replacement,
Equipment Replacement, and Technology Replacement internal service funds, respectively, for various operating
and capital improvement programs and projects. In addition, the SLFRF transferred $7,398,300 to the General Fund
for the recognition of previously restricted American Rescue Plan Act monies for general governmental usage.
NOTE 6: LEASES AND SUBSCRIPTION -BASED INFORMATION TECHNOLOGY ARRANGEMENTS
A. Leases Payable
The City has entered into various lease agreements as lessee for the acquisition and use of vehicles. The terms of
these 19 leasing arrangements are 5 years. As of June 30, 2023, the total value of the lease liability was $379,580.
The City is required to make monthly principal and interest payments of ranging from $447 to $1,044. The leases
have interest rates ranging from 3.2% to 11.2%. Information on the lease assets as of June 30, 2023 areas follows:
Governmental Activities
Amount of
Leased Capital Accumulated
Lease Type Major Class of Underlying Asset Assets Amorfization
Vehicle lease Right -to -use vehicles $ 756,807 $ 419,798
(M
Internal
General
Service
Fund
Funds
Total
Transfers out
General fund
$ -
$ 8,500,000
$ 8,500,000
SLFRF
7,398,300
-
7,398,300
Total
$ 7,398,300
$ 8,500,000
$ 15, 898, 300
The General Fund transferred $7,000,000, $1,000,000, and $500,000 into the Infrastructure Replacement,
Equipment Replacement, and Technology Replacement internal service funds, respectively, for various operating
and capital improvement programs and projects. In addition, the SLFRF transferred $7,398,300 to the General Fund
for the recognition of previously restricted American Rescue Plan Act monies for general governmental usage.
NOTE 6: LEASES AND SUBSCRIPTION -BASED INFORMATION TECHNOLOGY ARRANGEMENTS
A. Leases Payable
The City has entered into various lease agreements as lessee for the acquisition and use of vehicles. The terms of
these 19 leasing arrangements are 5 years. As of June 30, 2023, the total value of the lease liability was $379,580.
The City is required to make monthly principal and interest payments of ranging from $447 to $1,044. The leases
have interest rates ranging from 3.2% to 11.2%. Information on the lease assets as of June 30, 2023 areas follows:
Governmental Activities
Amount of
Leased Capital Accumulated
Lease Type Major Class of Underlying Asset Assets Amorfization
Vehicle lease Right -to -use vehicles $ 756,807 $ 419,798
(M
CITY OF ROSEMEAD
Notes to the Financial Statements
June 30, 2023
NOTE 6: LEASES AND SUBSCRIPTION -BASED INFORMATION TECHNOLOGY ARRANGEMENTS
(CONTINUED)
The City recognized $585,449 for variable and other payments, including short term leases not included in the
measurement of the lease liability. The future principal and interest lease payments as of June 30, 2023, were as
follows:
Governmental Activities
Fiscal Year
Ending
June 30, Principal Interest Total
2024
$ 134,543 $
31,556 $
166,099
2025
124,146
16,481
140,627
2026
65,995
8,989
74,984
2027
54,896
2,697
57,593
Totals
$ 379,580 $
59,723 $
439,303
B. Subscription -Based Information Technology Arrangements
The City implemented GASB Statement No. 96 in the fiscal year ended June 30, 2023. The primary objective of
this statement is to enhance the relevance and consistency of information about governments' subscription
based -information technology arrangement (SBITA) activities. This statement establishes a single model for SBITA
accounting based on the principle that SBITAs are financings of the right to use an underlying asset. Under this
Statement, a subscriber is required to recognize a subscription liability and an intangible right -to -use subscription
asset, for additional information, refer to the disclosures below.
The City has entered into various SBITAs as the subscriber for the use of software as a service. An initial
subscription liability was recorded in the amount of $88,030 during the current fiscal year. The terms of these
subscriptions range from 3 to 5 years. As of June 30, 2023, the total value of the subscription liability was $11,573.
The City is required to make annual principal and interest payments of ranging from $8,601 to $71,250. The
subscriptions have interest rates ranging from 0.39% to 2.35%. Information on the subscription assets as of
June 30, 2023 are as follows:
Governmental
Amount of
SBITA Capital Accumulated
Subscription Type Assets Amortization
Software as a service
$ 88,030 $ 55,182
The future principal and interest subscription payments as of June 30, 2023, were as follows. The future principal
and interest lease payments as of June 30, 2023, were as follows:
Governmental Activities
Fiscal Year
Ending
June 30, Principal Interest Total
2024 $ 4,872 $ 2,451 $ 7,323
2025 6,701 402 7,103
Totals $ 11,573 $ 2,853 $ 14,426
49
CITY OF ROSEMEAD
Notes to the Financial Statements
June 30, 2023
NOTE 7: CAPITAL ASSETS
Capital asset activity was as follows for the year ended June 30, 2023:
Governmental activities:
Capital assets, not being depreciatedlamortized
Land
Constructiorvin-progress
Total capital assets, not baro depreciatedlanortized
Capital assets, bang depredatedlannrtized
Buildings
Improvements other than buildings
Machinery and equiprnent
Autos and trucks
Furniture and office equipment
subscription assets
Lease assets
Infrastructure
Total capital assets, being depreclatedlamonized
Less accurrulated depreoisliondamortizabon
Buildings
Inproaerrents other than buildings
Machinery and equipment
Autos and trucks
Furniture and office equipment
Subscnption assets
Lease assets
Infrastructure
Total accumulated depreciationlamortization
Total capita assets, being depreciatedlarrortized, net
Total governmental activities capital assets
Balance Balance
July 1, 2022 Adiusirnents Additions Deletions Transfers Jure 30, 2023
$ 4,417,104 $ - $ 442,084 $ - $ - $ 4,859,188
1,443,958 3,670,942 (29,496) (3507,692) 1,577,712
5,861,062 4,113,026 (29496) (3507,692) 6,436,900
24,957,390
- 508,737 -
- 25,466,127
5,536,168
- 199,550 -
- 5,735,718
477,147
- 58,822 -
- 535,969
1,360,237
- 79,626 (76,458)
- 1,363,405
764,425
- - -
- 764,425
-
- 88,030 _
- 88,030
756,807
- - -
- 756,807
70,843,823
(1,629,332) -
3,507,692 74,351,515
104,695,997
934,765 (76,458)
3,507,692 109,061,996
(11,602,049)
- (515,985) -
- (12,118,034)
(2,582,671)
- (282,276) -
- (2,864,947)
(417,974)
- (20,007) -
- (437,981)
(1,190,124)
- (54,064) 76,458
- (1,167,670)
(753,635)
- (2,815) -
- (756,450)
-
- (55,182) -
- (55,182)
(268,436)
- (151,362) -
- (419,798)
(45,795,M)
(1,629,332) -
- (47 424,620)
(62610177)
(2710,963) 76,458
- (65244,682)
42,085,820 (1,776,198) 3,507,692 43,817,314
$ 47,946,882 $ $ 2,336,828 $ (29,496) $ $ 50,254,214
Depreciation and amortization expense was charged to functions/programs of the primary government as follows:
General government
$ 848
Public safety
14,947
Public works
2,295,841
Community development
235,930
Parks and recreation
161,876
Internal service funds
1,521
Total depreciation/amortization expense $ 2,7101963
RE
CITY OF ROSEMEAD
Notes to the Financial Statements
June 30, 2023
NOTE 8: COMPENSATED ABSENCES
Compensated absences activities for the year ended June 30, 2023, is as follows:
Amount
Balance Balance Due Within
July 1, 2022 Additions Deletions June 30, 2023 One Year
$ 672,452 $ 342,58_1_ $ 377,962 $ 637,071 $ 358,076
Compensated absences have no repayment schedule and become payable as used by employees. Compensated
absences are liquidated through the City's General Fund.
NOTE 9: RISK MANAGEMENT
A. Descriotion of Self -Insurance Pool Pursuant to Joint Powers Agreement
The City of Rosemead is a member of the California Joint Powers Insurance Authority (Authority). The Authority is
composed of 124 California public entities and is organized under a joint powers agreement pursuant to California
Government Code §6500 et seq. The purpose of the Authority is to arrange and administer programs for the pooling
of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group purchased insurance
for property and other lines of coverage. The California JPIA began covering claims of its members in 1978. Each
member government has an elected official as its representative on the Board of Directors. The Board operates
through a nine -member Executive Committee.
B. Primary Self -Insurance Programs of the Authority
Each member pays an annual contribution at the beginning of the coverage period. A retrospective adjustment is
then conducted annually thereafter, for coverage years 2012-13 and prior. Coverage years 2013-14 and forward
are not subject to routine annual retrospective adjustment. The total funding requirement for primary self-insurance
programs is based on an actuarial analysis. Costs are allocated to individual agencies based on payroll and claims
history, relative to other members of the risk -sharing pool.
Primary Liability Program
In the liability program claims are pooled separately between police and general government exposures.
(1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is
determined for each member, which establishes the weight applied to payroll and the weight applied to losses within
the formula. (2) The first layer of losses includes incurred costs up to $100,000 for each occurrence and is evaluated
as a percentage of the pool's total incurred costs within the first layer. (3) The second layer of losses includes
incurred costs from $100,000 to $500,000 for each occurrence and is evaluated as a percentage of the pool's total
incurred costs within the second layer. (4) Incurred costs from $500,000 to $50 million, are distributed based on
the outcome of cost allocation within the first and second loss layers.
The overall coverage limit for each member, including all layers of coverage, is $50 million per occurrence.
Subsidence losses also have a $50 million per occurrence limit. The coverage structure is composed of a
combination of pooled self-insurance, reinsurance, and excess insurance. Additional information about the various
layers of coverage is available on the following website: httr)s7/lc'pia.org/coveraneirisk-shahng-i)ools/.
51
CITY OF ROSEMEAD
Notes to the Financial Statements
June 30, 2023
NOTE 9: RISK MANAGEMENT (CONTINUED)
Workers' Compensation
In the workers' compensation program claims are pooled separately between public safety (police and fire) and
general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other
members. A variable credibility factor is determined for each member, which establishes the weight applied to
payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up
to $75,000 for each occurrence and is evaluated as a percentage of the pool's total incurred costs within the first
layer. (3) The second layer of losses includes incurred costs from $75,000 to $200,000 for each occurrence and is
evaluated as a percentage of the pool's total incurred costs within the second layer. (4) Incurred costs from $200,000
to statutory limits are distributed based on the outcome of cost allocation within the first and second loss layers.
For 2022-23 the Authority's pooled retention is $1 million per occurrence, with reinsurance to statutory limits under
California Workers' Compensation Law. Employer's Liability losses are pooled among members to $1 million.
Coverage from $1 million to $5 million is purchased as part of a reinsurance policy, and Employers Liability losses
from $5 million to $10 million are pooled among members.
C. Purchased Insurance
Pollution Legal Liability Insurance
The City of Rosemead participates in the pollution legal liability insurance program which is available through the
Authority. The policy covers sudden and gradual pollution of scheduled property, streets, and storm drains owned
by the City of Rosemead. Coverage is on a claims -made basis. There is a $250,000 deductible. The Authority has
an aggregate limit of $20 million.
Property Insurance
The City of Rosemead participates in the all-risk property protection program of the Authority. This insurance
protection is underwritten by several insurance companies. City of Rosemead property is currently insured
according to a schedule of covered property submitted by the City of Rosemead to the Authority. City of Rosemead
property currently has all-risk property insurance protection in the amount of $67,742,539. There is a $10,000
deductible per occurrence except for non -emergency vehicle insurance which has a $2,500 deductible.
Crime Insurance
The City of Rosemead purchases crime insurance coverage in the amount of $1,000,000 with a $2,500 deductible.
The fidelity coverage is provided through the Authority.
D. Adequacy of Protection
During the past three fiscal years, none of the above programs of protection experienced settlements orjudgments
that exceeded pooled or insured coverage. There were also no significant reductions in pooled or insured liability
coverage in 2022-23.
NOTE 10: DEFINED BENEFIT PENSION PLANS
A. Aaareaate Information on all Defined Benefit Pension Plans
The City participates in two defined benefit pension plans, the Miscellaneous Cost-sharing multiple -employer
defined benefit pension plan administered by the California Public Employees' Retirement System (CalPERS), and
the Public Agency Retirement System (PARS) retirement enhancement plan, a single -employer defined benefit
pension plan. These two plans are presented in aggregate on the government -wide financial statement of net
position. The schedule below summarizes the components of the information presented on the government -wide
statement broken out by each plan and in aggregate:
52
CITY OF ROSEMEAD
Notes to the Financial Statements
June 30, 2023
NOTE 10: DEFINED BENEFIT PENSION PLANS (CONTINUED)
Net Pension
Net Pension
Deferred Outflows
Deferred Inflows
Pension
Liability
(Asset)
of Resources
of Resources
Expense
Miscellaneous Plan $ 10,099,523
$ -
$ 4,342,362
$ 742,299
$ 529,112
PARS Retirement Enhancement Plan
(326,379)
363,605
1,397
24,165
Total pension plans $ 10,099,523
$ (326,379)
$ 4,725,967
$ 743,696
$ 553,297
B. Defined Benefit Pension Plan - CalPERS
1. Plan Description, Benefits Provided, and Employees Covered
The plan is a public agency cost-sharing multiple employer defined benefit pension plan administered by the
California Public Employees' Retirement System (CalPERS). A full description of the pension plan regarding
number of employees covered, benefit provisions, assumptions (for funding, but not accounting purposes), and
membership information are listed in the plan's June 30, 2021 Annual Actuarial Valuation Report (funding valuation).
Details of the benefits provided can be obtained in Appendix B of the actuarial valuation report. This report and
CalPERS' audited financial statements are publicly available reports that can be obtained at CalPERS' website.
2. Contribution Description
Section 20814(c) of the California Public Employees' Retirement Law (PERL) requires that the employer
contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective
on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS'
annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance
the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded
accrued liability. The employer is required to contribute the difference between the actuarially determined rate and
the contribution rate of employees. Employer contribution rates may change if plan contracts are amended.
Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms
as plan member contribution requirements are classified as plan member contributions. Plan contributions for the
year equaled $1,172,969.
3. Actuarial Methods and Assumptions Used to Determine Total Pension Liability
The June 30, 2021 valuation was rolled forward to determine the June 30, 2022 total pension liability, based on
the following actuarial methods and assumptions:
Actuarial Cost Method
Entry Age Normal Cost Method
Actuarial Assumptions
Discount rate
6.90%
Inflation
2.30%
Salary increases
Varies by entry age and services
Mortality rate table
Derived using CalPERS' membership data for all funds
Post-retirement benefit increase
The lesser of contract COLA or 2.30% until purchasing power
protection allowance floor on purchasing power applies,
2.30% thereafter
53
CITY OF ROSEMEAD
Notes to the Financial Statements
June 30, 2023
NOTE 10: DEFINED BENEFIT PENSION PLANS (CONTINUED)
The mortality table used was developed based on CaiPERS-specific data. The probabilities of mortality are based
on the 2021 CalPERS Experience Study for the period from 2001 to 2019. Pre -retirement and Post-retirement
mortality rates include generational mortality improvement using 80% of Scale MP -2020 published by the Society
of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial
Assumptions report from November 2021 that can be found on the CalPERS website.
4. Long-term Expected Rate of Return
The long-term expected rate of return on pension plan investments was determined using a building-block method
in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation)
are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term
market return expectations. Using historical returns of all of the funds' asset classes, expected compound
(geometric) returns were calculated over the next 20 years using a building-block approach. The expected rate of
return was then adjusted to account for assumed administrative expenses of 10 Basis points. The expected real
rates of return by asset class are as follows:
Asset Class
Assumed
Asset
Allocation
Real Return' z
Global equity -cap -weighted
30.00%
4.54%
Global equity -non -cap -weighted
12.00%
3.84%
Private equity
13.00%
7.28%
Treasury
5.00%
0.27%
Mortgage-backed securities
5.00%
0.50%
Investment grade corporates
10.00%
1.56%
High yield
5.00%
2.27%
Emerging market debt
5.00%
2.48%
Private debt
5.00%
3.57%
Real assets
15.00%
3.21%
Leverage
-5.00%
-0.59%
1 An expected inflation of 2.30% used for this period.
2 Figures are based on the 2021 Asset Liability Management study
5. Discount Rate
The discount rate used to measure the total pension liability was 6.90%. The projection of cash flows used to
determine the discount rate assumed that contributions from plan members will be made at the current member
contribution rates and that contributions from employers will be made at statutorily required rates, actuarially
determined. Based on those assumptions, the Plan's fiduciary net position was projected to be available to make
all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on
plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
54
CITY OF ROSEMEAD
Notes to the Financial Statements
June 30, 2023
NOTE 10: DEFINED BENEFIT PENSION PLANS (CONTINUED)
6. Changes in Assumptions
On July 12, 2021, CalPERS reported a preliminary 21.3% net return on investments for fiscal year 2020-21. Based
on the thresholds specified in CalPERS Funding Risk Mitigation policy, the excess return of 14.3% prescribes a
reduction in investment volatility that corresponds to a reduction in the discount rate used for funding purposes of
0.20%, from 7.00% to 6.80%. Since CalPERS was in the final stages of the four-year Asset Liability Management
(ALM) cycle, the board elected to defer any changes to the asset allocation until the ALM process concluded, and
the board could make its final decision on the asset allocation in November 2021.
On November 17, 2021, the board adopted a new strategic asset allocation. The new asset allocation along with
the new capital market assumptions, economic assumptions and administrative expense assumption support a
discount rate of 6.90% (net of investment expense but without a reduction for administrative expense) for financial
reporting purposes. This includes a reduction in the price inflation assumption from 2.50% to 2.30% as
recommended in the November 2021 CalPERS Experience Study and Review of Actuarial Assumptions. This study
also recommended modifications to retirement rates, termination rates, mortality rates and rates of salary increases
that were adopted by the board. These new assumptions will be reflected in the GASB 68 accounting valuation
reports for the June 30, 2022, measurement date.
7. Amortization of Deferred Outflows and Deferred Inflows of Resources
Under GASB Statement No. 68, gains and losses related to changes in total pension liability and fiduciary net
position are recognized in pension expense systematically over time.
The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining
amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be
recognized in future pension expense.
The amortization period differs depending on the source of the gain or loss:
Net difference between projected 5 -year straight-line amortization
and actual earnings on pension
plan investments
All other amounts Straight-line amortization over the expected average remaining
service lifetime (EARSL) of all members that are provided with
benefits (active, inactive, and retired) as of the beginning of the
measurement period.
The EARSL for the plan for the measurement period ending June 30, 2022 is 3.7 years, which was obtained by
dividing the total service years of 574,665 (the sum of remaining service lifetimes of the active employees) by
153,587 (the total number of participants: active, inactive, and retired). Inactive employees and retirees have
remaining service lifetimes equal to 0. Total future service is based on the members' probability of decrementing
due to an event other than receiving a cash refund.
55
CITY OF ROSEMEAD
Notes to the Financial Statements
June 30, 2023
NOTE 10: DEFINED BENEFIT PENSION PLANS (CONTINUED)
8. Proportionate Share of the Net Pension Liability
The City reports a net pension liability of $10,099,523 as of June 30, 2022 (the measurement date). The City's
proportion of the net pension liability was based on a projection of the City's long-term share of contributions to the
pension plans relative to the projected contributions of all participating employers, actuarially determined. The City's
proportionate share of the net pension liability for the Safety Plan as of June 30, 2021 and June 30, 2022
(measurement period), are as follows:
Proportion - June 30, 2021 0.08338%
Proportion - June 30, 2022 0.08744%
Change 4.8645%
9. Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the net pension liabilities calculated using the discount rate of 6.90%, as well as what the
net pension liability would be if it were calculated using a discount rate that is 1 -percentage -point lower (5.90%) or
1 -percentage -point higher (7.90%) than the current rate:
Discount Rate
Current
Discount Rate
-1 Percent
Discount Rate
+1 Percent
(5.90%)
(6.90%)
(7.90%)
Plan's net pension liability $ 15,709,524
$ 10,099,523
$ 5,483,884
56
CITY OF ROSEMEAD
Notes to the Financial Statements
June 30, 2023
NOTE 10: DEFINED BENEFIT PENSION PLANS (CONTINUED)
10. Pension Expense and Deferred Outflows and Deferred Inflows of Resources
For the fiscal year ended June 30, 2023, the City recognized $529,112 in pension expense.
The following table presents deferred outflows and deferred inflows of resources related to pensions as of the
June 30, 2023:
Contributions subsequent to the
measurement date
Changes of assumptions
Differences between expected and
actual experience
Net difference between projected
and actual earnings on pension
plan imestments
Adjustment due to differences
in proportions
Difference in actual to proportionate
share contribution
Total
Deferred Outflows Deferred Inflows
of Resources of Resources
$ 1,172,969 $
$ 769,854
1,034,907
-
202,818
135,839
1,849,964
-
26,152
58,916
55,552
547,544
$ 4,342,362 $
742,299
Amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in
future pension expense as follows:
Deferred
Outflowsl(lnflow5)
Fiscal year ended June 30, of Resources
2024
$ 769,854
2025
674,572
2026
375,923
2027
606,745
2028
-
Thereafter
-
Total
$ 2,427,094
C. PARS Retirement Enhancement Plan
Plan Description
The Plan is an agent, multiple -employer supplemental employee defined benefit pension plan (the Plan 11)
administered by the Public Agency Retirement Services (PARS) Phase II Systems. A full description of the pension
plan regarding number of employees covered, benefit provisions, assumptions (for funding, but not account
purposes), and membership information are listed in the June 30, 2022, Annual Actuarial Valuation Report. Details
of the benefits provided can be obtained from the actuarial valuation reports. PARS issues a publicly available
financial report that includes financial statement and required supplementary information for the Plan 11. That report
may be obtained writing to PARS, 3961 MacArthur Boulevard, Suite 200, Newport Beach, California, 92660.
57
CITY OF ROSEMEAD
Notes to the Financial Statements
June 30, 2023
NOTE 10: DEFINED BENEFIT PENSION PLANS (CONTINUED)
Benefits Provided
The Retirement Enhancement Plan provides a benefit equal to the PARS "3.0% at 55" plan factor (formula is a
static 3.0% at age 55 and older), less the CalPERS "2.7% at 55" plan factors (a static 2.7% at age 55 and older) for
all years of full-time continuous City service. The benefit from this plan when added to the CalPERS benefit may
not exceed 90% of final compensation.
The Plan II includes a pre -retirement death benefit for those eligible employees who die while actively employed
with the City and meet the age and service eligibility requirements for a supplemental retirement benefit. The benefit
will be paid to a surviving spouse or domestic partner as a life annuity equal to the employee's supplemental
retirement benefit actuarially reduced as if the employee had elected a 100% joint -and -survivor annuity.
The Plan is closed to all employees in the classes hired on or after July 1, 2010.
The Plan ll's provisions and benefits in effect at June 30, 2023, (measurement date) are summarized as follows:
Hire Date
Benefit Formula
Benefit vesting schedule
Benefit payments
Retirement age
Monthly benefits, as a % of eligible compensation
Required employee contribution rates
Required employer contribution rates
Employees Covered
Supplemental
On or before June 30, 2010
3% @ 55 less Cal PERS 2.7% @ 55
from date of hire
life only annuity
55
0.576%
none
1.390%
At June 30, 2023, the following employees were covered by the benefit terms:
Inactive members currently receiving benefits
19
Active members
26
Total
45
Contributions
Section 20814(c) of the California Public Employees' Retirement Law (PERL) requires that the employer
contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective
on the July 1 following notice of a change in the rate. The total plan contributions are determined through PARS'
annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance
the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded
accrued liability. For the measurement period ended June 30, 2023 (the measurement date), the employer's
contribution rate is 4.8 percent of annual payroll. Employer contribution rates may change if plan contracts are
amended. Employer Contributions for the measurement period ended June 30, 2023 are $75,945.
58
CITY OF ROSEMEAD
Notes to the Financial Statements
June 30, 2023
NOTE 10: DEFINED BENEFIT PENSION PLANS (CONTINUED)
Net Pension Asset
The City's net pension asset for the Retirement Enhancement Plan is measured as the total pension liability, less
the pension plan's fiduciary net position. The net pension asset of the Plan II is measured as of June 30, 2023,
using an annual actuarial valuation as of June 30, 2022.
Total Pension Plan Fiduciary Net Pension Plan fiduciary net
Liability Net Position Liability/(Asset) position as a % of
(a) (b) (c) _ (a) - (b) total pension asset
Balance at June 30, 2023 $ 2,852,675 $ 3,179,054 $ (326,379) 111%
Actuarial Assumptions and Methods
The following actuarial methods and assumptions were used in the June 30, 2022, funding valuation:
Actuarial Cost Method
Amortization Method
Level percent or level dollar
Closed, open, or layered periods
Amortization period at 06/30/2021
Amortization grov4h rate
Asset Valuation Method
Smoothing period
Recognition method
Corridor
Inflation
Salary Increases
Investment Rate of Return
Cost of Living Adjustments
Mortality
Discount Rate
Entry Age Normal
Level dollar
Closed
20 years
0.00%
None
None
None
2.30%
Varies by entry age and service
6.50%
2.00%
Consistent vdth Non -Industrial rates used to
value the Miscellaneous Public Agency CaIPERS
Pension Plans.
GASB 68 generally require that a blended discount rate be used to measure the Total Pension Liability
(the Actuarial Accrued Liability calculated using the Individual Entry Age Normal Cost Method). The long-term
expected return on plan investments may be used to discount liabilities to the extent that the plan's Fiduciary Net
Position (fair market value of assets) is projected to cover benefit payments and administrative expenses.
A 20 -year high quality (AA/Aa or higher) municipal bond rate must be used for periods where the Fiduciary Net
Position is not projected to cover benefit payments and administrative expenses. Determining the discount rate
under GASB 68 will often require that the actuary perform complex projections of future benefit payments and asset
values.
GASB 68 (paragraph 29) do allow for alternative evaluations of projected solvency, if such evaluation can reliably
be made. GASB does not contemplate a specific method for making an alternative evaluation of sufficiency; it is left
to professional judgment.
59
CITY OF ROSEMEAD
Notes to the Financial Statements
June 30, 2023
NOTE 10: DEFINED BENEFIT PENSION PLANS (CONTINUED)
The following circumstances justify an alternative evaluation of sufficiency for the City of Rosemead:
The City of Rosemead has at least a 5 -year history of generally paying at least 100% of the Actuarially
Determined Contribution (previously termed the Annual Required Contribution).
• The Actuarially Determined Contribution is based on a closed amortization period, which means that payment
of the Actuarially Determined Contribution each year will bring the plan to a 100% funded position by the end
of the amortization period.
• GASB 68 specifies that the projections regarding future solvency assume that plan assets earn the assumed
rate of return and there are no future changes in the plan provisions or actuarial methods and assumptions
which means that the projections would not reflect any adverse future experience which might impact the plan's
funded position.
Based on these circumstances, the City believes that the detailed depletion date projections outlined in GASB 68
will show that the fiduciary net position is always projected to be sufficient to cover benefit payments and
administrative expenses.
2021 June 30. 2022
Discount rate 6.50% 6.50%
Long-term expected rate of return, 6.50% 6.50%
net of investment expense
Municipal bond rate N/A WA
The Plan H's fiduciary net position was projected to be available to make all projected future benefit payments of
current active and inactive employees. Therefore, the discount rate for calculating the total pension liability is equal
to the long-term expected rate of return.
The assumption for the long-term expected rate of return was selected by the City of Rosemead. Below is a
projection of the 30 year average return derived by adding expected inflation to expected long-term real returns and
reflecting and expected volatility and correlation on the Plan's current asset allocation. The capital market
assumptions are per Milliman's investment consulting practice as of June 30, 2023.
M
Long -Term
Long -Term
Expected
Expected
Arithmetic
Geometric
Current
Real Rate
Real Rate
Asset Class
Index
Allocation
of Return
of Return
US Cash
BAML 3 -Mon Tbill
8.63%
0.51%
0.49%
US Core Fixed Income
Bloomberg Barclays Aggregate
45.57%
2.07%
1.93%
US Equity Market
Russell 3000
34.99%
5.56%
3.90%
Foreign Developed Equity
MSCI EAFE NR
5.75%
6.89%
5.07%
Emerging Markets Equity
MSCI EM NR
3.54%
9.58%
6.18%
US REITs
FTSE NAREIT Equity REIT
1.52%
6.96%
4.74%
M
CITY OF ROSEMEAD
Notes to the Financial Statements
June 30. 2023
NOTE 10: DEFINED BENEFIT PENSION PLANS (CONTINUED)
Changes in Net Pension Asset
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
(a) (b) (c) _ (a) - (b)
Balance at June 30, 2022
$ 2,759,003
$ 3,117,038
$ (358,035)
Changes recognized for the
measurement period:
Service cost
22,499
-
22,499
Interest on total pension liability
173,711
-
173,711
Effect of economic/demographic
gains or losses
120,849
-
120,849
Effect of assumptions changes or inputs
(1,863)
-
(1,863)
Benefit payments
(221,524)
(221,524)
Employer contributions
75,945
(75,945)
Net investment income
208,826
(208,826)
Administrativee)pense
(1,231)
1,231
Net changes during 2022-23
Balance at June 30, 2023
93,672 62,016 31,656
$ 2,852,675 $ 3,179,054
Sensitivity of Net Pension Asset to Changes in the Discount Rate
The following presents the net pension asset, calculated using the discount rate of 6.50%, as well as what the net
pension liability would be if it were calculated using a discount rate that is one percentage point lower (5.50%) or
one percentage point higher (7.50%) than the current rate:
Discount Rate Current Discount Rate
-1 Percent Discount Rate +1 Percent
(5.50%) (6.50%) (7.50%)
Plan's net pension asset $ (27,504) $ (326,379) $ (580,844)
61
CITY OF ROSEMEAD
Notes to the Financial Statements
June 30, 2023
NOTE 10: DEFINED BENEFIT PENSION PLANS (CONTINUED)
Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions
For the year ended June 30, 2023, the City recognized pension expense of $24,185. At June 30, 2023, the City
reported deferred outflows of resources and deferred inflows of resources related to pensions from the following
sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Changes of assumptions $ $ (1,397)
Differences between expected and
actual experience 133,473
Net difference between projected
and actual earnings on pension
plan investments 250,132
Total $ 383,605 $ (1,397)
62
CITY OF ROSEMEAD
Notes to the Financial Statements
June 30, 2023
NOTE 10: DEFINED BENEFIT PENSION PLANS (CONTINUED)
Amounts currently reported as deferred outflows of resources and deferred inflows of resources related to pensions
will be recognized in pension expense as follows:
NOTE 11: DEFINED CONTRIBUTION PENSION PLAN
PARS Alternate Retirement Svstem (ARS) Plan
The City currently offers an alternative plan for employees classified as part-time, seasonal or temporary (PST).
The plan is administered by the Public Agency Retirement Services (PARS) and is a qualified deferred
compensation plan created in accordance with Internal Revenue Code Section 457(b). All amounts of compensation
deferred under the plan, all property, or rights are solely the property and rights of the employee and beneficiaries
of the plan. Deferred compensation funds are not subject to claims of the City's general creditor; consequently, the
assets and related liabilities of the plan are not included within the City's financial statements.
The City contributes 3.75% percent of the employee's compensation. In addition, each participant is required to
contribute 3.75% of their salary. During the current fiscal year, the City contributed $75,945 to the plan.
NOTE 12: POST -EMPLOYMENT BENEFIT PLAN
Plan Description
The City administers an agent multiple employer defined benefit plan which provides medical benefits to eligible
retirees and their spouses in accordance with various labor agreements.
EmDlovees Covered
An employee is eligible for this employer contribution provided they are vested in their CaIPERS pension benefit
and commence payment of their pension benefit within 120 days of retirement with the City. Vesting requires at
least 5 years of CaIPERS total service. The surviving spouse of an eligible retiree who elected spouse coverage
under CalPERS is eligible for the employee contribution upon the death of the retiree.
63
Deferred
Outflows/(Inflows)
Fiscal year ended June 30,
of Resources
2024
$ 120,874
2025
96,400
2026
167,117
2027
(2,183)
2028
Thereafter
-
Total
$ 382,208
NOTE 11: DEFINED CONTRIBUTION PENSION PLAN
PARS Alternate Retirement Svstem (ARS) Plan
The City currently offers an alternative plan for employees classified as part-time, seasonal or temporary (PST).
The plan is administered by the Public Agency Retirement Services (PARS) and is a qualified deferred
compensation plan created in accordance with Internal Revenue Code Section 457(b). All amounts of compensation
deferred under the plan, all property, or rights are solely the property and rights of the employee and beneficiaries
of the plan. Deferred compensation funds are not subject to claims of the City's general creditor; consequently, the
assets and related liabilities of the plan are not included within the City's financial statements.
The City contributes 3.75% percent of the employee's compensation. In addition, each participant is required to
contribute 3.75% of their salary. During the current fiscal year, the City contributed $75,945 to the plan.
NOTE 12: POST -EMPLOYMENT BENEFIT PLAN
Plan Description
The City administers an agent multiple employer defined benefit plan which provides medical benefits to eligible
retirees and their spouses in accordance with various labor agreements.
EmDlovees Covered
An employee is eligible for this employer contribution provided they are vested in their CaIPERS pension benefit
and commence payment of their pension benefit within 120 days of retirement with the City. Vesting requires at
least 5 years of CaIPERS total service. The surviving spouse of an eligible retiree who elected spouse coverage
under CalPERS is eligible for the employee contribution upon the death of the retiree.
63
CITY OF ROSEMEAD
Notes to the Financial Statements
June 30, 2023
NOTE 12: POST -EMPLOYMENT BENEFIT PLAN (CONTINUED)
Employees hired on or before July 1, 2007, who have 20 years or more of service with the City of Rosemead, and
who retire from the City, receive an allowance of up to $1,000 per month for health care benefits for the duration of
their retirement. Employees hired on or before July 1, 2007, who have 12-19 years of service with the
City of Rosemead, and who retire from the City, receive an allowance up to $500 per month for health care benefits
for the duration of their retirement. For these retirees, the cost of the health insurance is deducted from the retiree's
monthly pension payment, and then reimbursed, up to the limits defined herein exclusive of the required PEMHCA
minimum, from the City. At age 65, Medicare automatically becomes the primary provider of health coverage with
the City's provided plan becoming secondary. These benefits are for the benefit of the retiree, their spouse, and/or
any eligible dependent.
For employees hired after July 1, 2007, the City provides the minimum required employer contribution under the
CalPERS Health Plan (HC Plan) for eligible retirees and surviving spouses in receipt of a pension benefit from
CalPERS.
The minimum required employer contribution is statutorily set under PEMHCA and is scheduled to increase in the
future based on the medical portion of CPI. Minimum required employer contributions for the calendar years 2022
and 2023 were $133 and $148, respectively.
Inactive members currently receiving benefits 27
I nactive members entitled to but not yet receiving benefits 7
Active members 61
Total 95
Contributions
The contribution requirements of plan members and the City are established and may be amended by City Council.
On May 26, 2009, the City Council passed a resolution to participate in the PARS Public Agencies Post -Retirement
Health Care Plan Trust, an irrevocable trust established to fund post -employment benefits for its employees. The
purpose of the trust is to accumulate, hold, and distribute medical benefit plan assets for the exclusive benefit of
retirees and beneficiaries within the IRS Code Section 115 and in conformance with the accounting standard. The
trust is administered by Public Agency Retirement Services (PARS). PARS issues a separate Comprehensive
Annual Financial Report. Copies of the PARS annual financial report may be obtained from PARS,
4350 Von Karman Avenue, Suite 100, Newport Beach, California 92660.
For the measurement date ended June 30, 2022, the City recognized a total of $100,859 as a reduction to the net
OPEB liability.
Gil
CITY OF ROSEMEAD
Notes to the Financial Statements
June 30, 2023
NOTE 12: POST -EMPLOYMENT BENEFIT PLAN (CONTINUED)
Net OPEB Liability
The City's net OPEB liability was measured as of June 30, 2022, and the total OPEB liability used to calculate the
net OPEB liability was determined by an actuarial valuation dated June 30, 2021 was used to determine the total
OPEB liability, based on the following actuarial methods and assumptions:
Valuation Date
June 30, 2021
Actuarial Cost Method
Entry Age Normal, Level Percentage of Payroll
Amortization Method
Level percent of pay
Amortization Period
18 -year fixed period for 2020/21
Asset Valuation Method
Investment gains and losses spread over 55 -year
rolling period
Discount Rate
5.50%
General Inflation
2.50%
Medical Trend
Non -Medicare - 6.75% for 2022, decreasing to an
ultimate rate of 3.75% in 2076
Medicare - 6.3% for 2021, decreasing to an
ultimate rate of 4.0% in 2076
Mortality
CaIPERS 1997-2015 experience study
Mortality Improvement
Mortality Improvement Scale 2020 for post-
retirement mortality
Salary Increases
Aggregate - 2.75% annually
Ment - CaIPERS 1997-2015 experience study.
PEMHCA Minimum Increases
3.75% annually
Cap Increases
No future increases
Healthcare Participation for
Actives & Surviving Spouses Hired <=7/1/07:
Future Retirees
Covered:
<12 yrs of service - 70%
12-19 yrs of service - 80%
>= 20 yrs of service - 100%
Waived:
<12 yrs of service - 50%
12-19 yrs of service - 65%
>= 20 yrs of service - 80%
Actives & Surviving Spouses Hired> 7/1/07:
Covered - 70%, Waived - 50%
Retirees & Surviving Spouses: Covered - 100%
Waived < 65 - 20% at 65, Wavied >= 65 - 0%
Change of assumptions
Discount rate was updated based on newer market
assumptions. Decreased medical trend ratefor
Kaiser Senion Advantage. Mortality improvement
scale was updated to Scale MP -2020. Decreased
general inflation, assumed payroll increases and
medical inflation. Updated assumption far
Medicare eligible implied subsidy. New claims
cast aging factors
Changes of benefit terms
None
65
CITY OF ROSEMEAD
Notes to the Financial Statements
June 30, 2023
NOTE 12: POST -EMPLOYMENT BENEFIT PLAN (CONTINUED)
Expected Long -Term Rate of Return
Asset Class
Global Equity
Fixed Income
Cash
Target Allocation Expected Real
PARS -Moderate Rate of Return
50.00% 4.56%
45.00% 0.78%
5.00% -0.50%
' An expected inflation rate of 2.50% used for this period.
2 An expected long-term net rate of return of 5.50% used for this perioc
Discount Rate
The discount rate used to measure the total OPEB liability was 5.50 percent. The projection of cash flows used to
determine the discount rate assumed that City contributions will be made at rates equal to the actuarially determined
contribution rates. Based on those assumptions, the OPEB plan's fiduciary net position was projected to be
available to make all projected OPEB payments for current active and inactive employees and beneficiaries.
Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected
benefit payments to determine the total OPEB liability.
Changes in the OPEB Liability/(Asset)
The changes in the net OPEB liability for the Plan are as follows:
Balance at June 30, 2022
Changes recognized for the
measurement period:
Service cost
Interest on total OPEB liability
Contributions -employer
Net investment income
Benefit payments
Administrative expenses
Net changes during 2021-22
Balance at June 30, 2023
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability/(Asset)
(a) (b) (c) _ (a) - (b)
$ 4,551,907 $ 4,604,008 $ (52,101)
115,691
115,691
250,578 -
250,578
- 100,859
(100,859)
(607,709)
607,709
(223,257) (223,257)
-
- (11,901)
11,901
143,012 (742,008) 885,020
$ 4,694,919 $ 3,862,000 $ 832,919
Sensitivity of the Net OPEB Liability/(Asset) to Changes in the Discount Rate
The following presents the net OPEB liability/(asset) of the City if it were calculated using a discount rate that is one
percentage point lower or one percentage point higher than the current rate, for measurement period ended
June 30, 2022:
99
CITY OF ROSEMEAD
Notes to the Financial Statements
June 30, 2023
NOTE 12: POST -EMPLOYMENT BENEFIT PLAN (CONTINUED)
Discount Rate Current Discount Rate
-1 Percent Discount Rate +1 Percent
(4.50%) (5.50%) (6.50%)
Plan's net OPEB liability $ 1,429,250 $ 832,919 $ 334,820
Sensitivity of the Net OPEB Liability/(Asset) to Changes in the Health Care Cost Trend Rates
The following presents the net OPEB liability/(asset) of the City if it were calculated using health care cost trend
rates that are one percentage point lower or one percentage point higher than the current rate, for measurement
period ended June 30, 2022:
Current
1 Percent Heathcare 1 Percent
Decrease Trend Rate Increase
Plan's net OPEB liability $ 490,089 $ 832,919 $ 1,195,635
OPEB Plan Fiduciary Net Position
PARS issues a publicly available financial report that includes financial statements and required supplementary
information. That report may be obtained from the Public Agency Retirement Services, 4350 Von Karman Ave,
Newport Beach, California 92660.
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB
For the fiscal year ended June 30, 2023, the City recognized OPEB expense of $134,042. As of fiscal year ended
June 30, 2023, the City reported deferred outflows of resources related to OPEB from the following sources:
Contributions subsequent to the
measurement date
Changes of assumptions
Differences between expected and
actual experience
Net difference between projected
and actual earnings on OPEB
plan investments
Total
Deferred Outflows Deferred Inflows
of Resources of Resources
154,691 $ -
151,727 22,265
328,545
348,945 -
$ 655,363 $ 350,810
,71
CITY OF ROSEMEAD
Notes to the Financial Statements
June 30, 2023
NOTE 12: POST -EMPLOYMENT BENEFIT PLAN (CONTINUED)
The $154,691 reported as deferred outflows of resources related to contributions subsequent to the measurement
date will be recognized as a reduction of the net OPEB liability in the year ended June 30, 2024. The amounts
reported as deferred inflows of resources related to OPEB will be recognized as expense as follows:
Fiscal year ended June 30,
Deferred
Outflows/(Inflows)
of Resources
2024
$ 10,699
2025
15,260
2026
(3,312)
2027
120,730
2028
(7,347)
Thereafter
13,832
Total
$ 149,862
NOTE 13: COMMITMENTS AND CONTINGENCIES
The City is a member of the Los Angeles County Liability Trust Fund (the Trust Fund), which was set up to pay for
litigation involving the Los Angeles County Sheriffs' Department within any of the 40 cities that are served by the
Los Angeles County Sheriffs' Department. The Trust Fund was and is being funded by the 40 cities based upon
each city's allocated surcharge, calculated as a percentage of each city's contribution to the total contracted amount
with the County paid to Los Angeles County for the use of its deputies. Based upon the agreement signed by all of
the 40 cities at the time the Trust Fund originated, the cities will be jointly liable for any and all claims fled against
the Los Angeles County Sheriffs' Department, regardless of the location within the 40 cities. The City is a defendant
in certain legal actions arising in the normal course of operations. In the opinion of management, any liability
resulting from such actions will not have a material adverse effect on the City's financial position.
NOTE 14: SUCCESSOR AGENCY
On December 29, 2011, the California Supreme Court upheld AB IX 26 that provides for the dissolution of all
redevelopment agencies in the State of California. This action impacted the reporting entity of the City that
previously had reported the former Agency within the reporting entity of the City as a blended component unit. In
June 2012, the Legislature adopted AR 1484, which amended portions of AB IX 26 and added certain new
provisions. AB IX 26 and AB 1484 are collectively referred to herein as the "Bill."
The Bill provides that upon dissolution of a redevelopment agency, either city or another unit local government will
agree to serve as the "successor agency" to hold the assets until they are distributed to other units of state
and local government. The successor agency is defined as being a separate legal entity from the City.
On January 10, 2012, the City Council elected to become the Successor Agency for the former Redevelopment
Agency in accordance with the Bill as part of City resolution number 28029. The assets and activities of the
Successor Agency for the former Agency are reported in a fiduciary fund (private -purpose trust fund) in the financial
statements of the City.
Subject to the approval of the oversight board and the State of California Department of Finance (DOF), remaining
assets can only be used to pay enforceable obligations in existence at the date of dissolution (including the
completion of any unfinished projects that were subject to legally enforceable contractual commitments).
Successor agencies are allocated property tax revenue in the amount that is necessary to pay the estimated
installment payments on enforceable obligations of the former redevelopment agencies until all enforceable
obligations of the prior redevelopment agencies have been paid in full and all assets have been liquidated.
fil
CITY OF ROSEMEAD
Notes to the Financial Statements
June 30, 2023
NOTE 14: SUCCESSOR AGENCY
A. Cash and Investments
Cash and investments of the Successor Agency consist of demand deposit held with financial institutions and
restricted cash held with fiscal agents for the purpose of debt service payments and bond covenants. The cash
and investments reported in the accompanying financial statements consisted of the following:
Statement of Fiduciary Net Position
Pooled cash and investments $ 4,611,041
Restricted:
Cash with fiscal agents 1,123,647
Total cash and investments $ 5,734,688
B. Lona -Term Debt
The debt of the Successor Agency as of June 30, 2023 is as follows
Future debt service requirements are as follows:
June 30 Principal Interest
2024
$ 2,320,000 $
765,500
2025
Amount
676,375
Balance
1,305,000
Balance
Due Within
1,370,000
July 1, 2022 Additions
Deletions
June 30, 2023
One Year
Bonds payable
8,300,000
1,300,800
2034-2038
1,880,000
Tau Allocation Bonds Series 2010A
$ 2,235,000 $ -
$ 1,100,000
$ 1,135,000
$ 1,135,000
Tax Allocation Bonds Series 2016
18,155,000 -
1,430,000
16,725,000
1,185,000
Premium
1,174,737
- 106,795
1,067,942
106,794
Discount
(18,475)
- (14,780)
(3,695)
(3,695)
Total
$ 21,546,262 $
- $ 2,622,015
$ 18,924,247
$ 2,423,099
Future debt service requirements are as follows:
June 30 Principal Interest
2024
$ 2,320,000 $
765,500
2025
1,245,000
676,375
2026
1,305,000
612,625
2027
1,370,000
545,750
2028
1,440,000
475,500
2029-2033
8,300,000
1,300,800
2034-2038
1,880,000
37,600
Totals
$ 17,860,000 $
4,414,150
M
CITY OF ROSEMEAD
Notes to the Financial Statements
June 30, 2023
NOTE 14: SUCCESSOR AGENCY (CONTINUED)
Tax Allocation Bonds Series 2010A
In July 2010, the Commission issued $11,230,000 in Merged Project Area Tax Allocation Bonds. The bonds mature
in amounts ranging from $200,000 to $1,135,000 with interest rates ranging from 3.00% to 5.00% through
December 1, 2023. The bonds were issued to provide funds to finance the costs of certain redevelopment projects
within the Merged Project Area including infrastructure improvements and the acquisition of land. Principal is
payable annually on December 1, beginning on December 1, 2011. Interest is payable semi-annually on June 1
and December 1. Per the bond indenture, a reserve is required to be maintained. In the event of default, all money
in the funds and accounts provided for in the bond indenture and all tax revenues thereafter received by the
Successor Agency are to be transmitted to the trustee and applied in the following order: first to pay the costs and
expenses of the trustee for legal counsel, and second, to pay the unpaid principal and interest accrued on the
bonds. At June 30, 2023, the balance held in the reserve account was $1,123,000. As of June 30, 2023, the
outstanding balance was $1,135,000.
2016 Subordinate Tax Allocation Refunding Bonds
In October 2016, the Successor Agency to the Rosemead Redevelopment Agency (Successor Agency) issued the
2016 Subordinate Tax Allocation Refunding Bonds in the amount of $24,230,000 for the purpose of refunding, on
a current basis, all of the outstanding Rosemead Community Development Commission Redevelopment Project
Area No. 1 Tax Allocation Bonds, Series 2006A, initially issued in the principal amount of $14,005,000, and the
Rosemead Community Development Commission Redevelopment Project Area No. 1 Tax Allocation Refunding
Bonds, Series 20068, initially issued in the principal amount of $24,230,000. Interest is payable semi-annually on
April 1 and October 1. The bonds are subject to acceleration upon on event of default. If an event of default has
occurred, the principal of the bonds, together with the interest thereon, are due and payable immediately. As of
June 30, 2023, the outstanding balance was $16,725,000.
C. Pledged Revenue
The City pledged, as security for the bonds issued, a portion of tax increment revenue (including Low and Moderate
Income Housing set-aside and pass through allocations) that it received. The bonds were issued to provide
financing for various capital projects, accomplish Low and Moderate Income Housing projects, and to defease
previously issued bonds. Assembly Bill 1 X 26 provided that upon dissolution of the redevelopment activities of the
redevelopment agency, property taxes allocated to redevelopment activities are no longer deemed tax increment,
but rather property tax revenues and will be allocated first to successor agencies to make payments on the
indebtedness incurred by the dissolved redevelopment agency. Total principal and interest remaining on the debt
as of June 30, 2023 is $22,274,150 with annual debt service requirements as indicated above. For the current year,
the total property tax revenue recognized by the successor agency for the payment of indebtedness incurred by the
dissolved redevelopment agency was $2,801,429 and the debt service obligation on the bonds was $3,416,750.
NOTE 15: SUBSEQUENT EVENTS
The City evaluated subsequent events for recognition and disclosure through December 14, 2023, the date on
which these financial statements were available to be issued. Management concluded that no material subsequent
events have occurred since June 30, 2023, that required recognition or disclosure in these financial statements.
70
Required Supplementary
Information
THIS PAGE INTENTIONALLY LEFT BLANK
CITY OF ROSEMEAD
Notes to Required Supplementary Information
June 30, 2023
Budgetary Comparison Information
1. Annual budgets are legally adopted on a basis consistent with accounting principles generally accepted in the
United States of America for all governmental funds. All annual appropriations lapse at fiscal year-end.
2. On or before the last day in March of each year, all business units and component units of the government
submit requests for appropriations to the City Manager so that a budget may be prepared. Before the first
Thursday of June, the proposed budget is presented to the City Council for review. The Council holds public
meetings and a final budget must be prepared and adopted no later than June 30.
3. The appropriated budget is prepared by fund and department. The City's Department Directors, with approval
of the Finance Director and City Manager, may make transfers of appropriations within a department and
between departments within a fund. Transfers of appropriations between funds must be approved by the
City Council. The legal level of budgetary control (i.e., the level at which expenditures may not legally exceed
appropriations) is the fund level. The Council made several supplemental budgetary appropriations throughout
the year. The supplemental budgetary appropriations made in the various governmental funds are detailed in
the required supplementary information. Budgets were legally adopted for all governmental funds.
4. Encumbrance accounting is employed in governmental funds. Encumbrances (e.g., purchase orders, and
contracts) outstanding at year end do not constitute expenditures or liabilities because the commitments will be
appropriated and honored during the subsequent year.
71
CITY OF ROSEMEAD, CALIFORNIA
Budgetary Comparison Schedule
General Fund
For the Year Ended June 30, 2023
72
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 28,556,266
$ 28,556,266
$ 28,556,266
$ -
Available for Appropriations (Inflows):
Taxes
21,522,800
21,522,800
23,039,365
1,516,565
Licenses and permits
2,348,000
2,348,000
4,514,893
2,166,893
Intergovernmental
41,700
41,700
580,020
538,320
Charges for services
1,078,300
1,078,300
1,102,835
24,535
Use of money and property
671,400
671,400
1,432,238
760,838
Fines and forfeitures
605,300
605,300
594,978
(10,322)
Miscellaneous
49,500
49,500
262,186
212,686
Transfers in
1,400,000
7,398,300
7,398,300
-
Amounts Available for Appropriations
56,273,266
62,271,566
67,481,081
5,209,515
Charges to Appropriation (Outflows):
General government
5,906,700
5,827,463
4,787,316
1,040,147
Public safety
11,495,300
11,495,300
10,860,001
635,299
Community development
1,890,500
1,890,500
2,230,699
(340,199)
Parks and recreation
3,952,600
3,952,600
3,277,024
675,576
Public works
4,407,100
4,407,100
3,954,745
452,355
Capital outlay
60,000
1,447,800
1,361,626
86,174
Debt service:
Principal retirement
-
76,457
76,457
-
Interest and fiscal charges
-
2,780
2,780
-
Transfers out
-
8,500,000
8,500,000
-
Total Charges to Appropriations
27,712,200
37,600,000
35,050,648
2,549,352
Budgetary Fund Balance, June 30
$ 28,561,066
$ 24,671,566
$ 32,430,433
$ 7,758,867
72
CITY OF ROSEMEAD, CALIFORNIA
Budgetary Comparison Schedule
City Grants Fund
For the Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Deficit, July 1 $ (26,662) $ (26,662) $ (26,662) $ -
Available for Appropriations (Inflows)
Intergovernmental
348,000
348,000
334,840
(13,160)
Amounts Available for Appropriations
321,338
321,338
308,178
(13,160)
Charges to Appropriation (Outflows):
Public works
68,000
68,000
36,961
31,039
Capital outlay
280,000
2,156,400
1,683,236
473,164
Total Charges to Appropriations
348,000
2,224,400
1,720,197
504,203
Budgetary Fund Deficit, June 30 $ (26,662) $ (1,903,062) _L__(1,412,019L $ 491,043
73
CITY OF ROSEMEAD, CALIFORNIA
Budgetary Comparison Schedule
American Rescue Plan
For the Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ - $ - $ - $ -
Available for Appropriations (Inflows):
Intergovernmental - - 340,931 340,931
Amounts Available for Appropriations - - 340,931 340,931
Charges to Appropriation (Outflows)
General government
208,200
208,200
160,179 48,021
Public works
170,800
170,800
180,752 (9,952)
Capital outlay
2,520,000
2,520,000
- 2,520,000
Total Charges to Appropriations
2,899,000
2,899,000
340,931 2,558,069
Budgetary Fund Balance, June 30
$ (2,899,000)
$ (2,899,000) $
- $ 2,899,000
74
CITY OF ROSEMEAD, CALIFORNIA
Budgetary Comparison Schedule
SLFRF
For the Year Ended June 30, 2023
Budgetary Fund Balance, July 1
Available for Appropriations (Inflows):
Intergovernmental
Amounts Available for Appropriations
Charges to Appropriation (Outflows):
Capital outlay
Transfers out
Total Charges to Appropriations
Budgetary Fund Balance, June 30
$ (5,204,200) $ (10,000,000) $ - $ 10,000,000
75
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
-
-
7,647,217
7,647,217
•
-
7,647,217
7,647,217
3,804,200
2,601,700
248,917
2,352,783
1,400,000
7,398,300
7,398,300
-
5,204,200
10,000,000
7,647,217
2,352,783
$ (5,204,200) $ (10,000,000) $ - $ 10,000,000
75
CITY OF ROSEMEAD, CALIFORNIA
Cost -Sharing Multiple Employer Miscellaneous Plans
Schedule of Proportionate Share of the Net Pension Liability
As of June 30, For the Last Ten Fiscal Years "'
Measurement Date
Proportion of the Net Pension Liability
Proportionate Share of the Net Pension Liability
Covered Payroll
Proportionate Share of the Net Pension Liability as
Percentage of Covered Payroll
Plan Fiduciary Net Position as a Percentage of the
Total Pension Liability
Notes to Schedule of Proportionate Share of the Net Pension Liability
Benefit Changes: None.
Changes of Assumptions: None.
2023
2022
2021
6/30/2022
6/30/2021
6/30/2020
0.08744%
0.08338%
0.08279%
$ 10,099,523
$ 4,509,289
$ 9,007,798
$ 4,185,828
$ 3,888,373
$ 3,832,817
241%
116%
235%
76.7%
88.3%
75.3%
�'� Fiscal year 2015 was the first year of GASB Statement No. 68 implementation, therefore only nine years are shown.
76
2020
2019
2018
2017
2016
2015
6/30/2019
6/30/2018
6/30/2017
6/30/2016
6/30/2015
6/30/2014
0.08643%
0.09186%
0.09661%
0.09959%
0.27841%
0.10996%
$ 8,856,781
$ 8,688,626
$ 9,309,566
$ 8,617,416
$ 7,638,064
$ 6,842,230
$ 3,903,914
$ 3,761,962
$ 3,690,780
$ 3,444,503
$ 4,604,511
$ 4,152,555
227%
231%
252%
250%
166%
165%
75.3% 75.3% 73.3% 74.1% 69.7% 155.3%
77
CITY OF ROSEMEAD, CALIFORNIA
Cost -Sharing Multiple Employer Miscellaneous Plans
Schedule of Plan Contributions
As of June 30, for the Last Ten Fiscal Years (1)
Actuarially Determined Contribution
Contribution in Relation to the Actuarially Determined Contribution
Contribution Deficiency (Excess)
Covered Payroll
Contributions as a Percentage of Covered Payroll
2023 2022 2021
$ 1,172,969 $ 1,036,079 $ 1,013,310
(1,172,969) (1,036,079) (1,013,310)
$ 4,412,785 $ 4,185,828 $ 3,888,373
26.6% 24.8% 26.1%
Notes to Schedule of Plan Contributions:
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2022-23 were
derived from the June 30, 2021 funding valuation report.
Actuarial Cast Method: Entry Age Normal
Amortization Method/Period: For details, see June 30, 2021 Funding Valuation
Report.
Asset Valuation Method: Market Value of Assets. For details, see
June 30, 2021 Funding Valuation Report.
Inflation: 2.30%
Salary Increases: Varies by Entry Age and Service
Retirement Age: The probabilities of Retirement are based on the
2021 CalPERS Experience Study for the period of
2001 to 2019.
Mortality: The probabilities of mortality are based on the
2021 CalPERS Experience Study for the period
from 2001 to 2019. Pre -retirement and
Post-retirement mortality rates include
generational mortality improvement using 80% of
Scale MP -2020.
(') Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of
implementation, therefore only nine years are shown.
VL:3
2020 2019 2018 2017 2016 2015
$ 1,446,875 $ 1,389,145 $ 1,487,464 $ 1,113,875 $ 1,113,875 $ 910,907
(1,446,875) (1,389,145) (1,487,464) (1,113,875) (1,113,875) (910,907)
$ 3,832,817 $ 3,903,914 $ 3,761,962 $ 3,690,780 $ 3,444,503 $ 4,604,511
37.7% 35.6% 39.5% 30.2% 32.3% 19.8%
79
CITY OF ROSEMEAD, CALIFORNIA
PARS RETIREMENT ENHANCEMENT PLAN
Schedule of Changes in Net Pension Liability (Asset) and Related Ratios
As of June 30, for the Last Ten Fiscal Years 11
Notes to Schedule of Changes in the Net Pension Liability (Asset) and Related Ratios:
Changes of Assumptions: There were no changes in assumptions.
(') Historical information is required only for measurement for which GASB 68 is applicable. Fiscal year 2015 was the first year of
implementation, therefore only nine years are shown.
Aei
2023
2022
2021
Total Pension Liability
Service Cost
$ 22,499
$ 24,732
$ 24,070
Interest
173,711
175,746
171,039
Effect of Liability Gains or Losses
120,849
-
110,471
Effect of Assumption Changes or Inputs
(1,863)
-
Beneft Payments, Including Refunds of employee Contributions
(221,524)
(237,325)
(230,403)
Net Change in Total Pension Liability
93,672
(36,847)
75,177
Total Pension Liability - Beginning
$ 2,759,003
2,795,850
2,720,673
Total Pension Liability - Ending (a)
$ 2,852,675
$ 2,759,003
$ 2,795,850
Plan Fiduciary Net Position
Contribution - Employer
$ 75,945
$ 68,424
$ 75,165
Net Investment Income
208,826
(459,657)
66Q793
Benefit Payments, Including Refunds of Employee Contributions
(221,524)
(237,325)
(230,403)
Other Changes in Fiduciary Net Position
(1,231)
(1,280)
(1,316)
Net Change in Fiduciary Net Position
62,016
(629,838)
504,239
Plan Fiduciary Net Position - Beginning
3,117,038
3,746,876
3,242,637
Plan Fiduciary Net Position - Ending (b)
$ 3,179,054
$ 3,117,038
$ 3,746,876
Plan Net Pension Liabilityl(Assets) - Ending (a) - (b)
$ (326,379)
$ (358,035)
Plan Fiduciary Net Position as a Percentage of the Total Pension
Liability
111.4%
113.0%
134.0%
Covered Payroll
$ 1,663,456
$ 1,618,148
$ 1,780,371
Plan Net Pension Liability/(Asset) as a Percentage of Covered Payroll
-19.6%
-22.1%
-53.4%
Notes to Schedule of Changes in the Net Pension Liability (Asset) and Related Ratios:
Changes of Assumptions: There were no changes in assumptions.
(') Historical information is required only for measurement for which GASB 68 is applicable. Fiscal year 2015 was the first year of
implementation, therefore only nine years are shown.
Aei
2020 2019 2018 2017 2016 2015
$ 25,883
$ 25,190
$ 37,502
$ 36,410
$ 45,435
$ 44,112
172,888
170,716
171,215
192,440
191,270
190,667
-
17,567
-
(355,400)
-
-
-
32,827
-
-
-
-
(220,611)
(206,738)
(201,490)
(200,693)
(218,411)
(234,960)
(21,840)
39,562
7,227
(327,243)
18,294
(181)
2,742,513
2,702,951
2,695,724
3,022,967
3,004,673
3,004,854
$ 2,720,673
$ 2,742,513
$ 2,702,951
$ 2,695,724
$ 3,022,967
$ 3,004,673
$ 112,649
$ 131,770
$ 140,376
$ 164,389
$ 265,241
$ 273,711
96,972
187,985
175,605
266,884
(2,345)
59,329
(220,611)
(206,738)
(201,490)
(200,693)
(218,411)
(234,960)
(1,441)
(1,440)
(1,461)
(6,848)
(2,624)
(5,864)
(12,431)
111,577
113,030
223,732
41,861
92,216
3,255,068
3,143,491
3,030,461
2,806,729
2,764,868
2,672,652
$ 3,242,637
$ 3,255,068
$ 3,143,491
$ 3,030,461
$ 2,806,729
$ 2,764,868
$ (521,964)
$ (512,555)
$ (440,540)
$ (334,737)
$ 216,238
$ 239,805
119.2% 118.7% 116.3% 112.4% 92.8% 92.0%
$ 2,30Q379 $ 2,238,812 $ 2,178,892 $ 2,414,510 $ 2,344,184 $ 3,060,587
-22.7% -22.9% -20.2% -13.9% 92% 7.8%
81
CITY OF ROSEMEAD, CALIFORNIA
PARS RETIREMENT ENHANCEMENT PLAN
Schedule of Plan Contributions
As of June 30, for the Last Ten Fiscal Years
Actuarially Determined Contribution
Contribution in Relation to the Actuarially Determined Contribution
Contribution Deficiency (Excess)
Covered Payroll
Contributions as a Percentage of Covered Payroll
Note to Schedule of Plan Contributions:
Valuation Date:
Methods and assumptions used to determine contribution rates:
Actuarial cost method
Amortization method
Remaining amortization period
Inflation
Salary Increases
Investment rate of return
Payroll Growth
Cost of Living Adjustments
Mortality
2023 2022 2021
$ 22,492 $ 24,747 $ 20,100
(75,945) (68,424) (75,165)
$ (53,453) $ (43,677) _L (55,065)
$ 1,663,456 $ 1,618,148 $ 1,780,371
4.6% 4.2% 4.2%
June 30, 2022
Entry age normal
Level dollar, closed
20 years
2.30%
3.34%, after 30 years of service
6.50%
2.80%
2.00%
Consistent with the Non-Indusrial rates used to
value Miscellaneous Agency CaIPERS Pension
Plans.
I'� Historical information is required only for measurement for which GASB 68 is applicable. Fiscal year 2015 was the first year of
implementation, therefore only nine years are shown.
9F
2020
2019
2018
2017
2016
2015
$ 25,970
$ 73,864
$ 81,888
$ 88,845
$ 116,244
$ 133,267
(112,649)
(131,770)
(140,376)
(164,389)
(265,241)
(273,711)
(140,444)
$ 2,300,379
$ 2,238,812
$ 2,178,892
$ 2,414,510
$ 2,344,184
$ 3,060,587
4.9%
5.9%
6.4%
6.8%
11.3%
8.9%
RRI
CITY OF ROSEMEAD, CALIFORNIA
Schedule of Changes in the Net OPEB
As of June 30, for the Last Ten Fiscal
Total OPEB Liability
Service cost
Interest on the total OPEB liability
Actual and expected experience difference
Changes in assumptions
Benefit payments
Net change in total OPEB liability
Total OPEB liability - beginning
Total OPEB liability - ending (a)
Plan Fiduciary Net Position
Contribution - employer
Net investment income
Benefit payments
Administrative expense
Net change in plan fiduciary net position
Plan fiduciary net position - beginning
Plan fiduciary net position - ending (b)
Net OPEB (Asset) Liability - ending (a) - (b)
(Asset) and Related Ratios
Plan fiduciary net position as a percentage of the total OPEB liability
Covered -employee payroll
Net OPEB liability as a percentage of covered -employee payroll
Notes to Schedule:
2023
$ 115,691
250,578
(223,257)
143,012
2022
$ 116,753
258,626
(106,136)
200,671
(223,397)
246,517
2021
$ 115,714
249,416
(201,882)
163,248
4,551,907 4,305,390 4,142,142
4,694,919 4,551,907 4,305,390
100,859
(607, 709)
(223,257)
(11,901)
(742,008)
4,604,008
3,862,000
$ 832,919
82.3%
$ 4,185,828
19.9%
179,672
848,323
(223,397)
(11,139)
793,459
3,810,549
4,604,008
$ (52,101)
101.1%
45,227
136,814
(201,882)
(10,252)
(30,093)
3,840,642
3,810,549
$ 494,841
88.5%
$ 3,888,373 $ 3,832,817
-1.3% 12.9%
(') Historical information is required only for the measurement periods for which GASB 75 is applicable. Fiscal Year 2018 was the
first year of implementation. Future years' information will be displayed up to 10 years as information becomes available.
84
2020
2019
2018
$ 155,962
$ 151,419
$ 147,009
268,709
253,402
237,920
(479,267)
-
-
(42,977)
-
-
(165,606)
(142,897)
(119,682)
(263,179)
261,924
265,247
4,405,321
4,143,397
3,878,150
4,142,142
4,405,321
4,143,397
97,132
22,063
158,082
242,596
223,704
336,797
(165,606)
(142,897)
(119,682)
(9,719)
(9,889)
(8,925)
164,403
92,981
366,272
3,676,239
3,583,258
3,216,986
3,840,642
3,676,239
3,583,258
$ 301,500
$ 729,082
$ 560,139
92.7%
83.4%
86.5%
$ 3,903,914 $ 3,761,962 $ 3,690,780
7.7% 19.4% 15.2%
CITY OF ROSEMEAD, CALIFORNIA
June 30, 2021
Actuarial Cost Method:
Entry Age Normal, Level Percentage of Payroll
Amortization Method:
Level percent of pay
Amortization Period:
Other Post -Employment Benefit Plan
Asset Valuation Method:
Investment gains and losses spread over 5 -year
rolling period
Discount Rate:
5.50% at June 30, 2022
Schedule of Plan Contributions
2.50% annually
Medical Trend:
Non -Medicare - 6.75% for 2022, decreasing to an
ultimate rate of 3.75% in 2076 Medicare non -Kaiser -
As of June 30, for the Let Ten Fiscal Years (1)
in 2076 Medicare Kaiser - 4.75% for 2022, decreasing
to an ultimate rate of 3.75% in 2076
Mortality:
CaIPERS 1997-2015 experience study
Mortality Improvement:
2023
2022
2021
2020
2019
2018
Actuanally Determined Contribution
$ 154,597
$ 167,000
$ 163,000
$ 202,000
$ 197,000
$ 192,000
Contribution in Relation to Me Actuarially Determined
Contributions R)
(154,691)
(100,859)
(179,672)
(45,227)
(97,132)
(22,063)
Contribution Deficiency (Excess)
$ (94)
$ 66,141
$ (16,672)
$ 156,773
$ 99,868
$ 169,937
Covered -employee payroll
$ 4,412,785
$ 4,185,828
$ 3,888,373
$ 3,832,817
$ 3,903,914
$ 3,761,962
Conmbutions as a percentage of covered -employee payroll
3.5%
2.4%
4.6%
1,2%
2,5%
0.6%
Notes to Schedule:
Actuarial methods and assumptions used to set the actuarially determined contribution for Fiscal Year 2018 were
from the December 31, 2016 actuarial valuation.
Valuation Date:
June 30, 2021
Actuarial Cost Method:
Entry Age Normal, Level Percentage of Payroll
Amortization Method:
Level percent of pay
Amortization Period:
18 -year fixed period for 2021/22
Asset Valuation Method:
Investment gains and losses spread over 5 -year
rolling period
Discount Rate:
5.50% at June 30, 2022
General Inflation:
2.50% annually
Medical Trend:
Non -Medicare - 6.75% for 2022, decreasing to an
ultimate rate of 3.75% in 2076 Medicare non -Kaiser -
5.85 % for 2022, decreasing to an ultimate rate of 335%
in 2076 Medicare Kaiser - 4.75% for 2022, decreasing
to an ultimate rate of 3.75% in 2076
Mortality:
CaIPERS 1997-2015 experience study
Mortality Improvement:
Mortality projected fully generational with Scale MP -
2020
All Other Assumptions:
Same as those used to determine the total OPEB
liability
nHistoncal information is required only for the measurement periods for which GASB 75 is applicable. Fiscal Year
2018 was the first year of implementation. Future years' information will be displayed up to 10 years as information
(31 Contributions include implied subsidies.
t
Combining and Individual
Fund Statements and
Schedules
THIS PAGE INTENTIONALLY LEFT BLANK
CITY OF ROSEMEAD, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
Assets:
Cash and investments
Receivables:
Accounts receivable
Notes and loans
Accrued interest
Due from other governments
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances (Deficits):
Liabilities:
Accounts payable
Accrued liabilities
Deposits payable
Due to other funds
Retentions payable
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances (Deficits):
Restricted:
Community services
Low and moderate income housing
Public works
Capital projects
Unassigned (deficit)
Total Fund Balances (Deficits)
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances (Deficits)
Revenue Funds
Local
Transportation/
State Gas Tax Sidewalk Grant Proposition A Proposition C
$ 3,345,914 $ - $ 1,526,470 $ 3,658,401
8,000
24,648 - 10,603 27,436
112,225 51,000 - -
$ 3,490,787 $ 51,000 $ 1,537,073 $ 3,685,837
$ 72,371 $ 48,450 $ 9,852 $ 581,715
7,092 - 2,858 2,096
- 2,550 - 24,682
79,463 51,000 12,710 608,493
1,459,824 - 1,524,363 143,917
1,951,500 - - 2,933,427
3,411,324 - 1,524,363 3,077,344
$ 3,490,787 $ 51,000 $ 1,537,073 $ 3,685,837
87
CITY OF ROSEMEAD, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
Assets:
Cash and investments
Receivables:
Accounts receivable
Notes and loans
Accrued interest
Due from other governments
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances (Deficits):
Liabilities:
Accounts payable
Accrued liabilities
Deposits payable
Due to other funds
Retentions payable
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances (Deficits):
Restricted:
Community services
Low and moderate income housing
Public works
Capital projects
Unassigned (deficit)
Total Fund Balances (Deficits)
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances (Deficits)
Special Revenue Funds
Air Quality
Management
Measure R Measure M District Street Lighting
$ 3,351,899 $ 4,240,504 $ 428,621 $ 3,710,601
25,091 30,685 3,327 28,224
_ - 16,846 68,951
$ 3,376,990 $ 4,271,189 $ 448,794 $ 3,807,776
$ 251,370 $ 140,870 $ - $ 133,133
253 107 30 4,473
17,684 7,123 - 15,647
269,307 148,100 30 153,253
2,006,625 1,432,989 448,764 1,956,872
1,101,058 2,690,100 - 1,697,651
3,107,683 4,123,089 448,764 3,654,523
$ 3,376,990 $ 4,271,189 $ 448,794 $ 3,807,776
W
CITY OF ROSEMEAD, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023 (CONTINUED)
Assets:
Cash and investments
Receivables:
Accounts receivable
Notes and loans
Accrued interest
Due from other governments
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances (Deficits):
Liabilities:
Accounts payable
Accrued liabilities
Deposits payable
Due to other funds
Retentions payable
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenues
Total Deferred Inflows of Resources
Revenue Funds
$ 129,670 $ 19,892 $ 139,715 $ 360,136
Fund Balances (Deficits):
Restricted:
Community services 79,670 9,892 - 360,136
Low and moderate income housing - - - -
Public works 50,000 10,000 139,715 -
Capital projects - - - -
Unassigned (deficit) - - - Total Fund Balances (Deficits) 129,670 19,892 139,715 360,136
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances (Deficits) $ 129,670 $ 19,892 $ 139,715 $ 360,136
T
Development
Development
Development
Impact Fee
Development
Impact Fee
Impact Fee
General
Impact Fee
Traffic
Public Safety
Government
Parks
$ 128,729
$ 19,748
$ 138,700
$ 357,528
941
144
1,015
2,608
$ 129,670 $ 19,892 $ 139,715 $ 360,136
Fund Balances (Deficits):
Restricted:
Community services 79,670 9,892 - 360,136
Low and moderate income housing - - - -
Public works 50,000 10,000 139,715 -
Capital projects - - - -
Unassigned (deficit) - - - Total Fund Balances (Deficits) 129,670 19,892 139,715 360,136
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances (Deficits) $ 129,670 $ 19,892 $ 139,715 $ 360,136
T
CITY OF ROSEMEAD, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
Assets:
Cash and investments
Receivables:
Accounts receivable
Notes and loans
Accrued interest
Due from other governments
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances (Deficits):
Liabilities:
Accounts payable
Accrued liabilities
Deposits payable
Due to other funds
Retentions payable
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenues
Total Deferred Inflows of Resources
Special Revenue Funds
$ - $ 892,566 $ 512,827 $ 3,796,721
- 17,660
- 3,391,385 - -
- 6,626 1,543 27,627
228,154 2,269 255,577 199,919
$ 228,154 $ 4,292,846 $ 787,607 $ 4,024,267
$ 159,767 $ 5,175 $ 288,066 $ (550)
1,114 377 - 620
- - 46,665 -
65,805 -
226,686 5,552 334,731 70
214,615
214,615
Fund Balances (Deficits):
Restricted:
Community services 1,468 4,072,679 - -
Low and moderate income housing - - 452,876 -
Public works - - - 980,300
Capital projects - - - 3,043,897
Unassigned (deficit) - - - -
Total Fund Balances (Deficits) 1,468 4,072,679 452,876 4,024,197
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances (Deficits) $ 228,154 $ 4,292,846 $ 787,607 $ 4,024,267
m
Road
Community
Rosemead
Maintenance
Development
Housing
and
Block Grant
Development
Rehabilitation
(CDBG) HOME Program
Corporation
Account SBI
$ - $ 892,566 $ 512,827 $ 3,796,721
- 17,660
- 3,391,385 - -
- 6,626 1,543 27,627
228,154 2,269 255,577 199,919
$ 228,154 $ 4,292,846 $ 787,607 $ 4,024,267
$ 159,767 $ 5,175 $ 288,066 $ (550)
1,114 377 - 620
- - 46,665 -
65,805 -
226,686 5,552 334,731 70
214,615
214,615
Fund Balances (Deficits):
Restricted:
Community services 1,468 4,072,679 - -
Low and moderate income housing - - 452,876 -
Public works - - - 980,300
Capital projects - - - 3,043,897
Unassigned (deficit) - - - -
Total Fund Balances (Deficits) 1,468 4,072,679 452,876 4,024,197
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances (Deficits) $ 228,154 $ 4,292,846 $ 787,607 $ 4,024,267
m
CITY OF ROSEMEAD, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
Assets:
Cash and investments
Receivables:
Accounts receivable
Notes and loans
Accrued interest
Due from other governments
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances (Deficits):
Liabilities:
Accounts payable
Accrued liabilities
Deposits payable
Due to other funds
Retentions payable
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances (Deficits):
Restricted:
Community services
Low and moderate income housing
Public works
Capital projects
Unassigned (deficit)
Total Fund Balances (Deficits)
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances (Deficits)
11
Special Revenue Capital Projects
Funds Fund
Total
Clean Water Governmental
Fund Measure R CP Funds
$ 917,578 $ - $ 27,026,807
25,660
- - 3,391,385
7,082 - 197,600
- 146,723 1,081,664
$ 924,660 $ 146,723 $ 31,723,116
$ 98,499 $ 35,218 $ 1,823,936
- - 19,020
- 46,665
- 111,506 177,311
4,751 - 72,437
103,250 146,724 2,139,369
99,072 313,687
99,072 313,687
- - 4,523,845
- - 452,876
821,410 - 10,974,779
- - 13,417,633
- (99,073) (99,073)
821,410 (99,073) 29,270,060
$ 924,660 $ 146,723 $ 31,723,116
THIS PAGE INTENTIONALLY LEFT BLANK
92
CITY OF ROSEMEAD, CALIFORNIA
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2023
Revenues:
Taxes
Intergovernmental
Charges for services
Use of money and property (loss on investments)
Developer participation
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety
Community development
Parks and recreation
Public works
Capital outlay
Total Expenditures
Net Change in Fund Balances
Fund Balances (Deficit), Beginning of Year
Fund Balances (Deficit), End of Year
Revenue Funds
State Gas Tax
Local
Transportation/
Sidewalk Grant
Proposition A
Proposition C
- -
16,667
-
49,567
1,283,580
51,000
1,425,393
1,182,323
8,000
-
14,679
4,931
57,601
-
22,190
64,226
1,349,181
51,000
1,462, 262
1,251,480
5,041
- 24,988
3,074
45,584
- -
16,667
-
49,567
-
681,407
- 747,282
515,582
-
51,000 -
502,573
732,032
51,000 821,837
1,037,896
617,149 - 640,425 213,584
2,794,175 - 883,938 2,863,760
$ 3,411,324 $ $ 1,524,363 $ 3,077,344
93
CITY OF ROSEMEAD, CALIFORNIA
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2023
Measure R
Revenues:
Taxes $ -
Intergovernmental 886,486
Charges for services -
Use of money and property (loss on investments) 57,618
Developer participation -
Miscellaneous -
Total Revenues
Expenditures:
Current:
General government
Public safety
Community development
Parks and recreation
Public works
Capital outlay
Total Expenditures
Net Change in Fund Balances
Fund Balances (Deficit), Beginning of Year
Fund Balances (Deficit), End of Year
Special Revenue Funds
Air Quality
Management
Measure M District Street Lighting
$ - $ - $ 195,288
1,002,806 66,282 1,250,248
69,355 8,453 64,533
944,104 1,072,161 74,735 1,510,069
2,934
34,251
22,702
118,263 983,125
569,036
153,367
- 327,051
606,221
176,069
118,263 1,310,176
337,883 896,092 (43,528) 199,893
2,769,800 3,226,997 492,292 3,454,630
$ 3,107,683 $ 4,123,089 $ 448,764 $ 3,654,523
94
CITY OF ROSEMEAD, CALIFORNIA
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2023 (CONTINUED)
Revenues:
Taxes
Intergovernmental
Charges for services
Use of money and property (loss on investments)
Developer participation
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety
Community development
Parks and recreation
Public works
Capital outlay
Total Expenditures
Net Change in Fund Balances
Fund Balances (Deficit), Beginning of Year
Fund Balances (Deficit), End of Year
Special Revenue Funds
2,082 318 2,235 5,804
48,814 8,003 55,868 237,933
50,896 8,321 58,103 243,737
225,000
225,000
50,896 8,321 58,103 18,737
78,774 11,571 81,612 341,399
$ 129,670 $ 19,892 $ 139,715 $ 360,136
M
Development
Development Development
Impact Fee Development
Impact Fee Impact Fee
General Impact Fee
Traffic Public Safety
Government Parks
2,082 318 2,235 5,804
48,814 8,003 55,868 237,933
50,896 8,321 58,103 243,737
225,000
225,000
50,896 8,321 58,103 18,737
78,774 11,571 81,612 341,399
$ 129,670 $ 19,892 $ 139,715 $ 360,136
M
CITY OF ROSEMEAD, CALIFORNIA
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2023
Expenditures:
Special Revenue Funds
Current:
Road
Community
51,014
Rosemead
Maintenance
-
Development
-
Housing
and
_
Block Grant
499,445
Development
Rehabilitation
-
(CDBG)
HOME Program
Corporation
Account SB1
Revenues:
Public works
-
-
-
Taxes
$ -
$ -
$ _
$ _
Intergovernmental
881,162
44,447
520,694
1,140,893
Charges for services
6,577
-
488,873
-
Use of money and property (loss on investments)
-
15,571
4,041
61,445
Developer participation
_
_
_
_
Miscellaneous
-
-
4,391
-
Total Revenues
887,739
60,018
1,017,999
1,202,338
Expenditures:
Current:
General government
51,014
33,441
-
-
Public safety
-
-
-
_
Community development
499,445
-
995,645
-
Parks and recreation
30,235
-
-
-
Public works
-
-
-
29,121
Capital outlay
300,471
-
-
-
Total Expenditures
881,165
33,441
995,645
29,121
Net Change in Fund Balances
6,574
26,577
22,354
1,173,217
Fund Balances (Deficit), Beginning of Year
(5,106)
4,046,102
430,522
2,850,980
Fund Balances (Deficit), End of Year
$ 1,468 $
4,072,679 $
452,876 $
4,024,197
m
CITY OF ROSEMEAD, CALIFORNIA
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2023
Special Capital Projects
Revenue Funds Fund
Revenues:
Taxes
Intergovernmental
Charges for services
Use of money and property (loss on investments)
Developer participation
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety
Community development
Parks and recreation
Public works
Capital outlay
Total Expenditures
Net Change in Fund Balances
Fund Balances (Deficit), Beginning of Year
Fund Balances (Deficit), End of Year
97
Total
Clean Water Governmental
Fund Measure R CP Funds
$ - $ - $ 195,288
561,185 118,740 10,415,239
- - 523,060
15,536 - 451,008
- - 350,618
- - 4,391
576,721 118,740 11,939,604
- 120,492
- 62,251
- - 1,495,090
- - 79,802
282,170 - 3,413,903
95,588 139,424 2,363,510
377,758 139,424 7,535,048
198,963 (20,684) 4,404,556
622,447 (78,389) 24,865,504
$ 821,410 _L____(99,073L $ 29,270,060
CITY OF ROSEMEAD, CALIFORNIA
Budgetary Comparison Schedule
State Gas Tax
For the Year Ended June 30, 2023
91.3
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 2,794,175
$ 2,794,175
$ 2,794,175
$ -
Available for Appropriations (Inflows):
Intergovernmental
1,486,500
1,486,500
1,283,580
(202,920)
Charges for services
8,000
8,000
8,000
-
Use of money and property
10,000
10,000
57,601
47,601
Amounts Available for Appropriations
4,298,675
4,298,675
4,143,356
(155,319)
Charges to Appropriation (Outflows):
General government
6,500
6,500
5,041
1,459
Public safety
49,100
49,100
45,584
3,516
Publicworks
938,000
938,000
681,407
256,593
Capital outlay
1,019,500
2,201,500
-
2,201,500
Total Charges to Appropriations
2,013,100
3,195,100
732,032
2,463,068
Budgetary Fund Balance, June 30
$ 2,285,575
$ 1,103,575
$ 3,411,324
$ 2,307,749
91.3
CITY OF ROSEMEAD, CALIFORNIA
Budgetary Comparison Schedule
Local Transportation Sidewalk Grant
For the Year Ended June 30, 2023
Budgetary Fund Balance, July 1
Available for Appropriations (Inflows):
Intergovernmental
Amounts Available for Appropriations
Charges to Appropriation (Outflows):
Capital outlay
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Variance with
Final Budget
BudgetAmounts Actual Positive
Original Final Amounts (Negative)
51,000 51,000 51,000
51,000 51,000 51,000
51,000 51,000 51,000
51,000 51,000 51,000
99
CITY OF ROSEMEAD, CALIFORNIA
Budgetary Comparison Schedule
Proposition A
For the Year Ended June 30, 2023
Charges to Appropriation (Outflows)
General government
41,000
41,000
24,988
Variance with
Parks and recreation
118,000
118,000
49,567
Final Budget
Public works
BudgetAmounts
Actual
Positive
61,218
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 883,938
$ 883,938
$ 883,938
$ -
Available for Appropriations (Inflows):
Intergovernmental
1,323,000
1,323,000
1,425,393
102,393
Charges for services
25,000
25,000
14,679
(10,321)
Use of money and property
5,000
5,000
22,190
17,190
Amounts Available for Appropriations
2,236,938
2,236,938
2,346,200
109,262
Charges to Appropriation (Outflows)
General government
41,000
41,000
24,988
16,012
Parks and recreation
118,000
118,000
49,567
68,433
Public works
1,263,500
808,500
747,282
61,218
Total Charges to Appropriations
1,422,500
967,500
821,837
145,663
Budgetary Fund Balance, June 30
$ 814,438 $
1,269,438 $
1,524,363 $
254,925
100
CITY OF ROSEMEAD, CALIFORNIA
Budgetary Comparison Schedule
Proposition C
For the Year Ended June 30, 2023
Budgetary Fund Balance, July 1
Available for Appropriations (Inflows):
Intergovernmental
Charges for services
Use of money and property
Amounts Available for Appropriations
Charges to Appropriation (Outflows):
General government
Public safety
Public works
Capital outlay
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Budget Amounts
Original Final
$ 2,863,760 $ 2,863,760
Actual
Amounts
$ 2,863,760
Variance with
Final Budget
Positive
(Negative)
1,097,000 1,097,000 1,182,323
85,323
- - 4,931
4,931
7,500 7,500 64,226
56,726
3,966,260 3,968,260 4,115,240
146,980
9,700
9,700
3,074
6,626
22,700
22,700
16,667
6,033
24,100
699,100
515,582
183,518
1,300,000
3,436,000
502,573
2,933,427
1,356,500
4,167,500
1,037,896
3,129,604
$ 2,611,760
$ (199,240) $
3,077,344
$ 3,276,584
101
CITY OF ROSEMEAD, CALIFORNIA
Budgetary Comparison Schedule
Measure R
For the Year Ended June 30, 2023
Budgetary Fund Balance, July 1
Available for Appropriations (Inflows):
Intergovernmental
Use of money and property
Amounts Available for Appropriations
Charges to Appropriation (Outflows):
General government
Public works
Capital outlay
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Budget Amounts
Original Final
$ 2,769,800 $ 2,769,800
Actual
Amounts
$ 2,769,800
Variance with
Final Budget
Positive
(Negative)
823,000
823,000
886,486
63,486
7,500
7,500
57,618
50,118
3,600,300
3,600,300
3,713,904
113,604
9,700
9,700
2,934
6,766
66,300
66,300
34,251
32,049
690,000
3,101,000
569,036
2,531,964
766,000
3,177,000
606,221
2,570,779
$ 2,834,300 $ 423,300 $ 3,107,683 $ 2,684,383
102
CITY OF ROSEMEAD, CALIFORNIA
Budgetary Comparison Schedule
Measure M
For the Year Ended June 30, 2023
Variance with
Final Budget
BudgetAmounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 3,226,997
$ 3,226,997
$ 3,226,997
$ -
Available for Appropriations (Inflows):
Intergovernmental
932,000
932,000
1,002,806
70,806
Use of money and property
15,000
15,000
69,355
54,355
Amounts Available for Appropriations
4,173,997
4,173,997
4,299,158
125,161
Charges to Appropriation (Outflows):
Public works
31,300
31,300
22,702
8,598
Capital outlay
1,256,000
3,943,000
153,367
3,789,633
Total Charges to Appropriations
1,287,300
3,974,300
176,069
3,798,231
Budgetary Fund Balance, June 30
$ 2,886,697
$ 199,697
$ 4,123,089
$ 3,923,392
CITY OF ROSEMEAD, CALIFORNIA
Budgetary Comparison Schedule
Air Quality Management District
For the Year Ended June 30, 2023
Budget Amounts
Original Final
Budgetary Fund Balance, July 1 $ 492,292 $ 492,292
Available for Appropriations (Inflows):
Intergovernmental 70,000 80,000
Use of money and property (loss on investments 2,000 2,000
Amounts Available for Appropriations 564,292 574,292
Actual
Amounts
$ 492,292
Variance with
Final Budget
Positive
(Negative)
66,282
(13,718)
8,453
6,453
567,027
(7,265)
Charges to Appropriation (Outflows):
Public works 122,600 122,600 118,263 4,337
Total Charges to Appropriations 122,600 122,600 118,263 4,337
Budgetary Fund Balance, June 30 $ 441,692 $ 451,692 $ 448,764$ (2,928)
104
CITY OF ROSEMEAD, CALIFORNIA
Budgetary Comparison Schedule
Street Lighting
For the Year Ended June 30, 2023
105
Variance with
Final Budget
BudgetAmounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 3,454,630
$ 3,454,630
$ 3,454,630
$ -
Available for Appropriations (Inflows):
Taxes
125,000
125,000
195,288
70,288
Intergovernmental
1,217,100
1,217,100
1,250,248
33,148
Use of money and property
10,000
10,000
64,533
54,533
Amounts Available for Appropriations
4,806,730
4,806,730
4,964,699
157,969
Charges to Appropriation (Outflows):
Public works
1,013,600
1,013,600
983,125
30,475
Capital outlay
67,500
1,742,500
327,051
1,415,449
Total Charges to Appropriations
1,081,100
2,756,100
1,310,176
1,445,924
Budgetary Fund Balance, June 30
$ 3,725,630
$ 2,050,630
$ 3,654,523
$ 1,603,893
105
CITY OF ROSEMEAD, CALIFORNIA
Budgetary Comparison Schedule
Development Impact Fee Traffic
For the Year Ended June 30, 2023
106
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 78,774
$ 78,774
$ 78,774
$ -
Available for Appropriations (Inflows):
Use of money and property
200
200
2,082
1,882
Developer participation
11,000
11,000
48,814
37,814
Amounts Available for Appropriations
89,974
89,974
129,670
39,696
Charges to Appropriation (Outflows):
Capital outlay
50,000
50,000
-
50,000
Total Charges to Appropriations
50,000
50,000
-
50,000
Budgetary Fund Balance, June 30
$ 39,974
$ 39,974
$ 129,670
$ 89,696
106
CITY OF ROSEMEAD, CALIFORNIA
Budgetary Comparison Schedule
Development Impact Fee Public Safety
For the Year Ended June 30, 2023
Budgetary Fund Balance, July 1
Available for Appropriations (Inflows):
Use of money and property
Developer participation
Amounts Available for Appropriations
Charges to Appropriation (Outflows):
Capital outlay
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Budget Amounts
Original Final
$ 11,571 $ 11,571
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
100
100
318
218
2,000
2,000
8,003
6,003
13,671
13,671
19,892
6,221
10,000
10,000
-
10,000
10,000
10,000
-
10,000
$ 3,671 $
3,671 $
19,892 $
16,221
107
CITY OF ROSEMEAD, CALIFORNIA
Budgetary Comparison Schedule
Development Fee General Government
For the Year Ended June 30, 2023
Budgetary Fund Balance, July 1
Available for Appropriations (Inflows):
Use of money and property
Developer participation
Amounts Available for Appropriations
Charges to Appropriation (Outflows):
Capital outlay
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Budget Amounts
Original Final
$ 81,612 $ 81,612
Actual
Amounts
$ 81,612
Variance with
Final Budget
Positive
(Negative)
300
300 2,235
1,935
13,000
13,000 55,868
42,868
94,912
94,912 139,715
44,803
75,000
75,000 -
75,000
75,000
75,000 -
75,000
$ 19,912 $ 19,912 $ 139,715 $ 119,803
M
CITY OF ROSEMEAD, CALIFORNIA
Budgetary Comparison Schedule
Development Impact Fee Parks
For the Year Ended June 30, 2023
Charges to Appropriation (Outflows):
Capital outlay 300,000 300,000 225,000 75,000
Total Charges to Appropriations 300,000 300,000 225,000 75,000
Budgetary Fund Balance, June 30 $ 96,399 $ 96,399 $ 360,136 $ 263,737
U11:1
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 341,399 $ 341,399
$ 341,399
$ -
Available for Appropriations (Inflows):
Use of money and property
1,000 1,000
5,804
4,804
Developer participation
54,000 54,000
237,933
183,933
Amounts Available for Appropriations
396,399 396,399
585,136
188,737
Charges to Appropriation (Outflows):
Capital outlay 300,000 300,000 225,000 75,000
Total Charges to Appropriations 300,000 300,000 225,000 75,000
Budgetary Fund Balance, June 30 $ 96,399 $ 96,399 $ 360,136 $ 263,737
U11:1
CITY OF ROSEMEAD, CALIFORNIA
Budgetary Comparison Schedule
Community Development Block Grant
For the Year Ended June 30, 2023
ff[i]
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Deficit, July 1
$ (5,106)
$ (5,106)
$ (5,106)
$ -
Available for Appropriations (Inflows):
Intergovernmental
2,243,100
2,243,100
881,162
(1,361,938)
Charges for services
12,000
12,000
6,577
(5,423)
Amounts Available for Appropriations
2,249,994
2,249,994
882,633
(1,367,361)
Charges to Appropriation (Outflows):
General government
93,000
93,000
51,014
41,986
Community development
1,844,300
1,844,300
499,445
1,344,855
Parks and recreation
52,000
52,000
30,235
21,765
Capital outlay
265,800
596,400
300,471
295,929
Total Charges to Appropriations
2,255,100
2,585,700
881,165
1,704,535
Budgetary Fund Deficit, June 30
$ (5,106)
$ (335,706)
$ 1,468
$ 337,174
ff[i]
CITY OF ROSEMEAD, CALIFORNIA
Budgetary Comparison Schedule
Home Program
For the Year Ended June 30, 2023
Budgetary Fund Balance, July 1, as restated
Available for Appropriations (Inflows):
Intergovernmental
Use of money and property
Amounts Available for Appropriations
cnarges to Appropriation tuurnowsy
General government
Community development
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Budget Amounts
Original Final
$ 4,046,102 $ 4,046,102
2,181,100 2,181,100
6,227,202 6,227,202
Actual
Amounts
$ 4,046,102
44,447
15,571
4,106,120
Variance with
Final Budget
Positive
(Negative)
(2,136,653)
15,571
(2,121,082)
33,500 33,500 33,441 59
2,147,600 2,147,600 - 2,147,600
2,181,100 2,181,100 33,441 2,147,659
$ 4,046,102 $ 4,046,102 $ 4,072,679 $ 26,577
111
CITY OF ROSEMEAD, CALIFORNIA
Budgetary Comparison Schedule
Rosemead Housing Development Corporation
For the Year Ended June 30, 2023
Budgetary Fund Balance, July 1
Available for Appropriations (Inflows)
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
430,522 $ 430,522 $ 430,522
Intergovernmental
599,400
599,400
520,694
(78,706)
Charges for services
419,500
419,500
488,873
69,373
Use of money and property
10,000
10,000
4,041
(5,959)
Miscellaneous
4,700
4,700
4,391
(309)
Amounts Available for Appropriations
1,464,122
1,464,122
1,448,521
(15,601)
Charges to Appropriation (Outflows):
Community development
Capital outlay
Total Charges to Appropriations
Budgetary Fund Balance, June 30
1,023,600 1,023,600
400,000 400,000
995,645
27,955
400,000
1,423,600 1,423,600 995,645 427,955
$ 40,522 $ 40,522 $ 452,876 $ 412,354
112
CITY OF ROSEMEAD, CALIFORNIA
Budgetary Comparison Schedule
Road Maintenance and Rehabilitation Account S61
For the Year Ended June 30, 2023
113
Variance with
Final Budget
BudgetAmounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 2,850,980
$ 2,850,980
$ 2,850,980
$
Available for Appropriations (Inflows):
Intergovernmental
1,200,900
1,200,900
1,140,893
(60,007)
Use of money and property (investment loss)
10,000
10,000
61,445
51,445
Amounts Available for Appropriations
4,061,880
4,061,880
4,053,318
(8,562)
Charges to Appropriation (Outflows):
Public works
34,300
34,300
29,121
5,179
Capital outlay
1,500,000
3,329,800
-
3,329,800
Total Charges to Appropriations
1,534,300
3,364,100
29,121
3,334,979
Budgetary Fund Balance, June 30
$ 2,527,580
$ 697,780
$ 4,024,197
$ 3,326,417
113
CITY OF ROSEMEAD, CALIFORNIA
Budgetary Comparison Schedule
Clean Water Fund
For the Year Ended June 30, 2023
Budgetary Fund Balance, July 1
Available for Appropriations (Inflows):
Intergovernmental
Use of money and property
Amounts Available for Appropriations
Charges to Appropriation (Outflows):
Public works
Capital outlay
Total Charges to Appropriations
Budgetary Fund Balance, June 30
114
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$ 622,447
$ 622,447
$ 622,447
$ -
570,000
570,000
561,185
(8,815)
1,000
1,000
15,536
14,536
1,193,447
1,193,447
1,199,168
5,721
530,000
530,000
282,170
247,830
-
200,000
95,588
104,412
530,000
730,000
377,758
352,242
$ 663,447
$ 463,447
$ 821,410
$ 357,963
114
CITY OF ROSEMEAD, CALIFORNIA
Budgetary Comparison Schedule
Measure R CP
For the Year Ended June 30, 2023
115
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Deficit, July 1
$ (78,389)
$ (78,389)
$ (78,389)
$ -
Available for Appropriations (Inflows):
Intergovernmental
-
-
118,740
118,740
Amounts Available for Appropriations
(78,389)
(78,389)
40,351
118,740
Charges to Appropriation (Outflows):
Capital outlay
-
26,854,000
139,424
26,714,576
Total Charges to Appropriations
26,854,000
139,424
26,714,576
Budgetary Fund Balance, June 30
$ (78,389)
S (26,932,389)
$ (99,073)
$ 26,833,316
115
CITY OF ROSEMEAD, CALIFORNIA
Combining Statement of Net Position
Internal Service Funds
June 30, 2023
Assets:
Current Assets:
Cash and investments
Receivables:
Accounts
Interest receivable
Total Current Assets
Noncurrent Assets:
Capital assets, net of accumulated depreciation
Total Noncurrent Assets
Total Assets
Net Position:
Invested in capital assets
Unrestricted
Total Net Position
Governmental Activities - Internal Service Funds
Equipment Technology Public
Replacement Replacement Facilities Totals
1,583,591 $ 570,750 $ 7,000,000 $ 9,154,341
- 990
4,359 617
990
4,976
1,587,950 572,357 7,000,000 9,160,307
61,406 - 61,406
61,406 - 61,406
1,587,950 633,763 7,000,000 9,221,713
- 61,406 - 61,406
1,587,950 572,357 7,000,000 9,160,307
$ 1,587,950 $ 633,763 7,000,000 $ 9,221,713
1W
CITY OF ROSEMEAD, CALIFORNIA
Combining Statement of Revenues, Expenses
And Changes in Fund Net Postion
Internal Service Funds
For the Year Ended June 30, 2023
Operating Expenses:
Contractual services
Depreciation expense
Total Operating Expenses
Operating Loss
Nonoperating Revenues:
Interest expense
Total Nonoperating Revenues
Income (Loss) Before Transfers
Transfers in
Change in Net Position
Net Position:
Net Position, Beginning of the Year
Net Position, End of the Year
Governmental Activities - Internal Service Funds
Equipment Technology Public
Replacement Replacement Facilities Totals
$ - $ 871 $ - $ 871
1,521 - 1,521
2,392 - 2,392
- (2,392) - (2,392)
10,382 1,861 - 12,243
10,382
1,861
12,243
10,382
(531) -
9,851
1,000,000
500,000 7,000,000
8,500,000
1,010,382
499,469 7,000,000
8,509,851
577,568 134,294 - 711,862
$ 1,587,950 $ 633,763 $ 7,000,000 $ 9,221,713
117
CITY OF ROSEMEAD, CALIFORNIA
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2023
Cash Flows from Operating Activities:
Cash paid to suppliers for goods and services
Net Cash Used by Operating Activities
Cash Flows from Non -Capital
Financing Activities:
Cash transfers in
Net Cash Provided by
Non -Capital Financing Activities
Cash Flows from Capital
and Related Financing Activities:
Acquisition and construction of capital assets
Net Cash Used for Capital
and Related Financing Activities
Cash Flows from Investing Activities:
Investment earnings
Net Cash Provided by Investing Activities
Governmental Activities - Internal Service Funds
Equipment Technology Public
Replacement Replacement Facilities Totals
$ - $ (1,861) $ - $ (1,861)
(1,861) - (1,861)
1,000,000 500,000 7,000,000 8,500,000
1,000,000 500,000 7,000,000 8,500,000
(58,823) - (58,823)
(58,823) (58,823)
7,322 1,533 - 8,855
7,322 1,533 - 8,855
Net Increase in Cash and Cash Equivalents 1,007,322 440,849 7,000,000 8,448,171
Cash and Cash Equivalents, Beginning of the Year
Cash and Cash Equivalents, End of the Year
Reconciliation of Operating Loss to Net Cash
Used by Operating Activities:
Operating loss
Adjustments to reconcile operating loss to
net cash used by operating activities:
Depreciation
Increase in accounts receivable
Total Adjustments
Net Cash Used by Operating Activities
576,269 129,901 - 706,170
$ 1,583,591 $ 570,750 $ 7,000,000 $ 9,154,341
$ - $ (2,392) $ - $ (2,392)
- 1,521
- 1,521
- (990)
- (990)
531
531
118
(1,861) $ - $ (1,861)
Statistical Section
THIS PAGE INTENTIONALLY LEFT BLANK
Statistical Section
This part of the City of Rosemead's Annual Comprehensive Financial Report presents detailed information as a context
for understanding what the information in the financial statements, note disclosures, and required supplementary
information says about the government's overall financial health.
Page
Debt Capacity
These schedules contain trend information to help the reader understand how the
government's financial performance and wellbeing have changed over time. 120-127
1 Net Position by Component
2 Changes in Net Position
3 Fund Balances of Governmental Funds
4 Changes in Fund Balances of Governmental Funds
Revenue Capacity
These schedules contain trend information to help the reader assess the government's
most significant revenue source, property tax. 128-131
5 Assessed Value and Estimated Actual Value of Taxable Property
6 Direct and Overlapping Property Tax Rates
7 Principal Property Taxpayers
8 Property Tax Levies and Collections
Debt Capacity
These schedules contain trend information to help the reader assess the affordability of
the government's current levels of outstanding debt and the government's ability to issue
additional debt in the future. 133-136
9 Direct and Overlapping Governmental Activities Debt
10 Legal Debt Margin
11 Pledged Revenue Coverage
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the government's financial activities take place. 137-140
12 Demographic and Economic Statistics
13 Principal Employers
14 Top 25 Sales Tax Producers
15 Full -Time and Part -Time Positions by Function
Operating Information
These schedules contain service and infrastructure data to help the reader understand
how the information in the government's financial report relates to the services the
government provides and the activities it performs. 141-142
16 Operating Indicators by Function
17 Capital Asset Statistics
Sources: Unless otherwise noted, the information in these schedules is derived from the Comprehensive Annual
Financial Reports for the relevant year.
119
CITY OF ROSEMEAD
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
2014 2015 2016 2017 2018
Governmental activities:
Net investment in capital assets
50,042,631
52,038,429
51,542,030
52,806,193
53,587,243
Restricted
3,110,688
3,419,068
4,005,847
4,387,055
3,554,634
Unrestricted
17,367, 841
11,018,153
13,108, 874
15,690,721
17,211,587
Total governmental activities net position
70,521,160
66,475,650
68,656,751
72,883,969
74,353,464
Note: The City implemented GASB 75 in the
FY 2018. Prior Year information was not restated to reflect the impact
of the implementation.
Source: City of Rosemead, Department of Finance
IPRI
Governmental activities:
Net investment in capital assets
Restricted
Unrestricted
Total governmental activities net position
Schedule 1
2019 2020 2021 2022 2023
50,882,552 48,825,863 47,444,803 47,464,095 49,863,061
9,730,202 13,681,082 21,872,184 24,948,999 29,695,512
17,483,422 17,754,529 18,627,063 22,020,342 34,915,640
78,096,176 80,261,474 87,944,050 94,433,436 114,474,213
121
CITY OF ROSEMEAD
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
Expenses:
Governmental activities:
General government
Public safety
Publicworks
Community development
Parks and recreation
Interest and other charges
Total governmental activities expenses
Program revenues:
Governmental activities:
Charges for services:
General government
Public safety
Public works
Community development
Parks and recreation
Total governmental activities
program revenues
Net revenues (expenses):
Governmental activities
Total net revenues (expenses)
General revenues and other changes in net assets:
Governmental activities:
Taxes:
Property taxes
Sales and use taxes
Transient occupancy taxes
Othertaxes
Investment income
Other general revenues
Loss on sale of capital assets
Transfer to Successor Agency
Extraordinary item:
Gain on dissolution of redevelopment agency
Total governmental activities
Changes in net position
Governmental activities
Total primary govemment
2015 2016 2017 2018
4,271,354 2,739,281 3,218,363 3,705,685 4,554,063
7,923,316 7,747,949 8,381,588 8,935,164 9,499,683
10,072,081 8,703,817 8,738,495 7,323,865 9,554,073
2,853,472 2,879,028 3,246,081 3,161,310 3,409,699
2,274,920 2,049,540 2,073,145 2,153,986 2,746,482
5,561 3,198 787 - -
27,400,704 24,122,813 25,658,459 25,280,010 29,764,000
2,030,063
2,725,291
2,203,233
2,191,604
1,769,171
1,586,557
1,573,532
1,563,652
1,565,275
1,787,151
4,356,486
4,627,331
4,360,908
4,232,311
5,208,427
1,632,508
1,915,557
2,352,137
2,523,350
4,265,255
724,197
713,484
741,171
788,931
828,038
10,329,811 11,555,195 11,221,101 11,301,471 13,858,042
(17,070,893) (12,567,618) (14,437,358) (13,978,539) (15,905,958)
8,667,709
9,034,141
9,158,499
8,643,019
9,128,934
3,504,285
3,452,605
4,124,745
5,366,975
5,929,492
1,593,640
1,575,401
1,998,954
2,213,286
2,326,863
1,307,280
1,247,941
1,209,249
1,224,230
1,313,699
216,499
97,589
348,651
20,526
210,288
604,053
793,680
945,372
737,721
647,888
15,893,466 16,201,357 17,785,470 18,205,757 19,557,164
$(1,177,427) $ 3,633,739 $ 3,348,112 $ 4,227,218 $ 3,651,206
Source: City of Rosemead, Department of Finance
122
Expenses:
Governmental activities:
General government
Public safety
Public works
Community development
Parks and recreation
Interest and other charges
Total governmental activities expenses
Program revenues:
Governmental activities:
Charges for services:
General government
Public safety
Public works
Community development
Parks and recreation
Total governmental activities
program revenues
Net revenues (expenses):
Governmental activities
Total net revenues (expenses)
Schedule 2
2019 2020 2021 2022
4,205,482
4,003,674
4,659,583
5,285,495
4,916,281
9,125,853
9,744,134
10,679,425
10,975,401
10,824,136
6,353,025
9,946,662
9,372,263
9,374,004
10,471,184
2,376,713
3,472,477
3,411,076
3,139,695
3,679,872
7,662,344
2,920,016
1,916,949
2,560,821
3,444,775
-
-
-
46,540
32,275
29,723,417
30,086,963
30,039,296
31,381,956
33,368,523
819,371
658,428
1,516,276
957,346
2,111,739
1,847,594
1,834,717
1,944,901
2,135,448
6,951,168
6,238,575
6,024,968
6,715,497
7,777,754
8,972,813
3,373,246
3,403,251
4,610,737
4,349,154
7,569,334
958,176
624,313
163,168
503,128
2,192,684
General revenues and other changes in net assets:
Governmental activities:
Taxes:
Property taxes
Sales and use taxes
Transient occupancy taxes
Othertaxes
Investment income
Other general revenues
Loss on sale of capital assets
Transfer to Successor Agency
13,236,962 12,545,677 14,950,579 15,722,830 27,797,738
(16,486,455) (17,541,286) (15,088,717) (15,659,126) (5,570,785)
9,566,800 9,942,183 10,740,563
5,735,491
5,430,222
5,534,244
2,314, 723
1,785,219
1,405, 397
1,329,822
1,346,327
1,378,550
1,158,407
945,319
287,628
123,924
257,314
40,151
10,881,809
11,750,041
6,889,892
7,369,300
2,097,700
2,312,408
1,594,759
1,802,904
596,871
2,110,332
99,978
266,577
Extraordinary item:
Gain on dissolution of redevelopment agency - - - -
Total governmental activities 20,229,167 19,706,584 19,386,533 22,161,009 25,611,562
Changes in net position
Governmental activities
Total primary government $ 3,742,712 $ 2,165,298 $ 4,297,816 $ 6,501,883 $ 20,040,777
Source: City of Rosemead, Department of Finance
123
CITY OF ROSEMEAD
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
General fund:
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total general fund
All other governmental funds:
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total all other governmental funds
2014
2015
2016
2017
2018
140,893
143,560
187,247
765,218
853,920
5,883,235
6,120,361
6,682,495
6,935,525
8,760,289
65,343
78,280
83,513
63,298
79,798
11.607.595
10.128.160
11.514.894
11.270.958
10.790.274
3,110,688
Source: City of Rosemead, Department of Finance.
124
3,419,068
1.643.527
4,005,847
4,376,257
(639.510
3,554,634
1,912,732
General fund:
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total general fund
All other governmental funds:
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total all other governmental funds
Schedule 3
2019
2020
2021
2022
2023
870,619
510,371
118,358
411,571
351,821
7,667,401
8,896,317
7,985,332
10,169,989
15,000,933
121,867
121,867
130,267
132,367
132,948
14 635.070
14.679.926
17.353.655
17.842.339
16,944,731
8,797,389 13,681,082
932,813 -
Source: City of Rosemead, Department of Finance.
125
21,872,184 24,948,999 29,369,133
(89.573) (110.157) (1.511,092
CITY OF ROSEMEAD
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Revenues:
Taxes
Intergovernmental
Licenses and permits
Charges for services
Fines, forfeitures and penalties
Development participation
Investment income
Other
Total revenues
Expenditures
Current:
General government
Public safety
Public works
Community development
Parks and recreation
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) of
revenues over (under)
expenditures
Other financing sources (uses):
Transfers in
Transfers out
Capital leases
Transfer to Successor Agency
Total other financing
sources (uses)
Extraordinary item:
Gain (loss) on dissolution of
redevelopment agency
Net change In tuna balances
Debt service as a percentage of
noncapital expenditures
2016 2017 2018
15,320,806
15,537,262
16,491,447
17,447,510
18,698,988
6,948,479
7,092,141
7,734,995
6,726,279
8,002,636
1,308,482
1,846,997
2,520,937
2,754,881
3,128,000
1,087,091
1,138,731
1,191,275
1,012,557
1,572,266
700,126
676,830
597,373
607,754
633,711
-
-
-
-
28,591
873,631
754,865
1,002,835
666,968
210,288
61.690
114.074
71.152
231.545
566,338
3,973,364
3,879,122
3,664,633
4,280,825
4,546,789
7,913,659
8,156,485
8,452,932
9,060,840
9,318,858
6,184,890
6,348,101
6,346,179
6,499,220
6,554,648
2,846,112
3,150,240
3,323,933
3,385,455
3,279,088
2,157,424
2,071,443
2,123,274
2,300,906
2,386,463
3,268,391
4,924,435
2,302,974
2,790,493
3,606,095
26,343,840 28,529,826 26,213,925 28,317,739 29,691,941
(43535) (1368926) 3,396,089 1,129,755 3,148,877
3,053,605 2,433,974 1,386,471 2,442,441 121,361
(3,053,605) (2,433,974) (1,386,471) (2,442,441) (121,361)
(43535) (1,368,926) 3,396,089 1,129,755 3,148,877
0.0% 0.0% 0.0% 0.0% 0.0%
Note: The information on this page has not been adjusted for any restatements of prior year financial statements.
Source: City of Rosemead, Department of Finance.
W
Schedule 4
Expenditures
2019
2020
2021
2022
2023
Revenues:
Taxes
18,946,836
18,503,951
19,082,069
21,470,510
23,234,653
intergovernmental
8,588,211
8,179,055
11,041,044
10,582,249
19,318,247
Licenses and permits
2,636,026
2,115,419
2,492,893
3,332,016
4,514,893
Charges for services
1,653,095
1,204,638
489,269
1,247,997
1,625,895
Fines, forfeitures and penalties
622,221
612,080
598,032
577,616
594,978
Development participation
117,115
150,728
78,558
114,662
350,618
Investment income
1,158,407
905,039
778,295
369,785
1,883,246
Other
250,364
271,515
63,684
84,050
266,577
Total revenues
33,972,275
31,942,425
34,623,844
37,778,885
51,789,107
Expenditures
Current:
General government
4,077,516
3,768,562
4,587,158
5,477,022
5,067,987
Public safety
9,089,645
9,577,867
10,574,620
10,978,236
10,922,252
Public works
7,247,391
7,032,609
7,098,823
7,512,480
7,586,361
Community development
3,637,692
3,352,332
3,349,209
3,147,029
3,725,789
Parks and recreation
2,343,452
2,703,857
1,706,997
2,427,999
3,356,826
Capital outlay
495,838
888,559
941,577
2,389,245
5,657,289
Debt service:
Principal
-
-
-
-
76,457
Interest and fiscal charges
-
-
-
-
2,780
Total expenditures
26,891,534
27,323,786
28,258,384
31,932,011
36,395,741
Excess (deficiency) of
revenues over (under)
expenditures
7,080,741
4,618,639
6,365,460
5,846,874
15,393,366
Other financing sources (uses):
Transfers in
-
-
-
-
7,398,300
Transfers out
-
-
-
178,011
(15,898,300)
Capital leases
-
-
-
-
Transfer to Successor Agency
-
-
-
-
Total other financing
sources (uses)
178,011
(8,500,000)
Extraordinary item:
Gain (loss) on dissolution of
redevelopment agency
-
-
-
-
-
Net change in tuna balances
7,080,741
4,618,639
6,365,460
6,024,885
6,893,366
Debt service as a percentage of
noncapital expenditures
0.0%
0.0%
0.0%
0.0%
0.2%
Note: The information on this page has not been adjusted for any restatements of prior year financial statements.
Source: City of Rosemead, Department of Finance.
127
CITY OF ROSEMEAD
Schedule 5
Assessed Value
and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
(in thousands of
dollars)
City
Fiscal Year
Total Direct
Ended
SBE Non-
Taxable
Tax Rate
June 30
Secured
Unsecured
Unitary
Assessed Value
2014
3,654,495,783
68,912,542
1,901,995
3,725,310,320
9.27%
2015
3,806,028,086
71,498,360
1,901,995
3,879,428,441
9.27%
2016
4,012,426,717
62,768,733
1,901,995
4,077,097,445
9.27%
2017
4,202,108,491
63,820,415
2,051,995
4,267,980,901
9.27%
2018
4,375,810,412
60,507,061
2,051,995
4,438,369,468
9.27%
2019
4,591,020,006
63,704,447
2,051,995
4,656,776,448
9.28%
2020
4,809,362,427
71,764,032
2,347,932
4,883,474,391
9.28%
2021
5,038,058,045
72,031,236
2,408,307
5,112,497,588
9.28%
2022
5,162,438,824
71,444,546
2,408,307
5,236,291,677
9.28%
2023
5,435,331,772
74,951,474
2,408,307
5,512,691,553
9.28%
Note
In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a total
maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed
value of property may be increased by an "inflation factor' (limited to a maximum increase of 2%). With few
exceptions, property is only re -assessed as a result of new construction activity or at the time it is sold to a new
owner. At that point, the property is reassessed based upon the added value of the construction or at the
purchase price (market value) or economic value of the property sold. The assessed valuation data shown
above represents the only data currently available with respect to the actual market value of taxable property
and is subject to the limitations described above.
Source: Los Angeles County Assessor Combined Tax Rolls and HDL Coren & Cone
128
CITY OF ROSEMEAD Schedule 6
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
(Rate per $100 of Taxable Value)
Basic Levy'
EI Monte City School District
EI Monte Union High School
Garvey School District
Garvey -Alhambra
Los Angeles Community College District
Metropolitan Water District
Montebello Unified School District
Pasadena Community College District
Rio Hondo Community College District
Rosemead School District
San Gabriel Unified School District
Total Direct & Overlappingz Tax Rates
City's Share of 1% Levy Per Prop 13 3
Voter Approved City Debt Rate
117 2018 2019 2020 2(
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
0.0000
0.1182
0.1464
0.1468
0.1462
0.1458
0.1080
0.0751
0.0799
0.0907
0.0980
0.0842
0.0916
0.0847
0.0824
0.0879
0.1097
0.0929
0.0765
0.0675
0.0598
0.0595
0.0587
0.0607
0.0833
0.0871
0.0862
0.0843
0.0884
0.0857
0.0315
0.0291
0.0291
0.0281
0.0481
0.0454
0.0366
0.0381
0.0299
0.0299
0.0445
0.0402
0.0358
0.0360
0.0460
0.0462
0.0272
0.0402
0.0438
0.0249
0.0180
0.0180
0.0180
0.0230
0.0300
0.0300
0.0300
0.0300
0.0300
0.0300
0.0946
0.0875
0.0872
0.1471
0.1351
0.1392
0.0931
0.0971
0.0903
0.1277
0.0190
0.0103
0.0087
0.0089
0.0082
0.0077
0.0072
0.0055
0.0090
0.0087
0.0000
0.0282
0.0271
0.0281
0.0275
0.0255
0.0257
0.0136
0.0153
0.0154
0.1031
0.0989
0.1000
0.0853
0.1198
0.0926
0.0868
0.0746
0.1018
0.0987
0.1008
0.1144
0.1068
0.1053
0.1008
0.1056
0.0968
0.0986
0.1019
0.1027
1.5694
1.6885
1.7093
1.7539
1.8273
1.8130
1.7073
1.6500
1.6662
1.6817
0.0939 0.0939 0.0939 0.0939 0.0939 0.0939 0.0939 0.0939 0.0939 0.0928
Redevelopment Rate" 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
Total Direct Rate s 0.0927 0.0927 0.0927 0.0927 0.0927 0.0928 0.0928 0.0928 0.0928 0.0928
Notes:
'In 1978, California voters passed Proposition 13 which set the property tax rate at a 1.00% fixed amount. This 1.00% is shared
by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are
charged taxes as a percentage of assessed property values for the payment of any voter approved bonds.
2 Overlapping rates are those of local and county govemments that apply to property owners within the City. Not all overlapping
rates apply to all city property owners.
3 City's share of 1 % Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within
the city. ERAF general fund tax shifts may not be included in tax ratio figures.
4 RDA rate is based on the largest RDA tax rate area (TRA) and includes only rate(s) from indebtedness adopted prior to 1989
per California State statute. RDA direct and overlapping rates are applied only to the incremental property values. The approval
of ABX1 26 eliminated Redevelopment from the State of California for the fiscal year 2012-13 and years thereafter.
5 Total Direct Rate is the weighted average of all individual direct rates applied by the government prepaing the statistical section
information and excludes revenues derived from aircraft Beginning in 2013/14 the Total Direct Rate no longer includes revenue
generated from the former redevelopment tax rate areas. Challenges to recognized enforceable obligations are assumed to
have been resolved during 2012/13. For the purposes of this report, residual revenue is assumed to be distributed to the City in
the same proportions as general fund revenue.
Source: Los Angeles County Assessor 2013/14 - 2022/23 Combined Tax Rolls and HDL Coren & Cone
129
CITY OF ROSEMEAD Schedule 7
Principal Property Tax Payers
Current Year and Ten Years Ago
Source: Los Angeles County Assessor Combined Tax Rolls and SBE Non Unitary Tax Roll for 2012/13 and 2021/22
and Hdl Coren & Cone
130
2023
2014
Percent of
Percent of
Total City
Total City
Taxable
Taxable
Taxable
Taxable
Assessed
Assessed
Assessed
Assessed
Taxpayer
Value
Rank
Value
Value
Rank
Value
Rosemead Place, LLC
$54,633,702
1
0.99%
$47,173,985
1
1.27%
Walmart Real Estate Business Trust
42,874,734
2
0.78%
37,447,086
2
1.01%
Rosemead Hwang LLC
39,077,269
3
0.71%
29,428,000
3
0.79%
AFG Investment Fund 5 LLC
29,037,825
4
0.53%
25,023,940
4
0.67%
West Meadow Health Holdings LLC
23,841,480
5
0.43%
-
-
-
Golden State Water Company
22,495,744
6
0.41%
-
-
0.00%
Sunshine Inn
21,974,797
7
0.40%
10,738,534
10
0.29%
Metodo Investments LLC
21,833,789
8
0.40%
18,868,184
5
0.51%
420 Boyd Street LLC
20,523,801
9
0.37%
17,000,000
6
0.46%
Hunsaker Family Trust
17,708,950
10
0.32%
-
-
-
Citadel Panda Exoress Inc
-
-
-
15,916,502
7
0.43%
Macy's California Inc
14,221,531
8
0.38%
Shurl and Kay Curci Foundation Lessor
14,031,441
9
0.38%
Source: Los Angeles County Assessor Combined Tax Rolls and SBE Non Unitary Tax Roll for 2012/13 and 2021/22
and Hdl Coren & Cone
130
CITY OF ROSEMEAD Schedule 8
Property Tax Levies and Collections
Last Ten Fiscal Years
Collected within the Fiscal
Year of Levy Collections in Total Collections to Date
Fiscal Year Taxes Levied for Percent of Subsequent Percent of
Ended June 30 the Fiscal Year Amount Levy Years * Amount Levy
2014
2,865,651
2015
2,981,810
2016
3,134,303
2017
3,187,187
2018
3,336,547
2019
3,489,499
2020
3,675,962
2021
3,847,941
2022
3,928,815
2023
4,099,167
Information not available.
2,850,674
99.48%
- 2,850,674
99.48%
2,935,129
98.43%
- 2,935,129
98.43%
3,114,233
99.36%
- 3,114,233
99.36%
2,632,109
82.58%
- 2,632,109
82.58%
2,878,054
86.26%
- 2,878,054
86.26%
3,008,322
86.21%
- 3,008,322
86.21%
3,064,430
83.36%
- 3,064,430
83.36%
2,812,253
73.08%
- 2,812,253
73.08%
2,862,513
72.86%
- 2,862,513
72.86%
3,091,286
75.41%
- 3,091,286
75.41%
Source: Los Angeles County Auditor Controllers Office
131
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132
CITY OF ROSEMEAD Schedule 9
Direct and Overlapping Governmental Activities Debt
June 30, 2023
Overlapping General Fund Debt
Percentage
Los Angeles County General Fund Obligations
2,601,551,282
Applicable To
7,570,514
Los Angeles County Superintendent of School Certificates
City of
City's Share of
of Participation
Total Debt
Rosemead (1)
Debt
Direct and Overlapping Tax and Assessment Debt
* Metropolitan Water District
$ 19,215,000
0.152%
29,207
Los Angeles Community College Distil
4,500,730,000
0.278%
12,512,029
Pasadena Area Community College District
51,995,000
2.346%
1,219,803
Alhambra Unified School District
67,504,695
11.712%
7,906,150
Montebello Unified District
248,196,585
1.523%
3,780,034
San Gabriel Unified School District
92,507,682
1.113%
1,029,611
EI Monte Union High School District
233,302,715
13.825%
32,254,100
Garvey School District
56,673,063
50.918%
28,856,790
Rosemead School District
51,669,021
67.684%
34,971,660
Total Direct and Overlapping Tax and Assessment Debt
Subtotal Overlapping Debt
122,559,384
Overlapping General Fund Debt
Los Angeles County General Fund Obligations
2,601,551,282
0.291%
7,570,514
Los Angeles County Superintendent of School Certificates
of Participation
3,403,487
0.291%
9,904
Pasadena Area Community College District Certificates of
Participation
28,785,000
2.346%
675,296
Montebello Unified School District Certificates of
Participation
4,615,000
1.523%
70,286
EI Monte Union High School District General Fund
Obligations
9,905,000
13.825%
1,369,366
Los Angeles County Sanitation District No. 2 Authority
776,732
0.003%
23
Los Angeles County Sanitation District No. 15 Authority
795,080
6.518%
51,823
9,747,214
Overlapping Tax Increment Debt (Successor Agency)
17,860,000
100%
17,860,000
Subtotal Overlapping Debt
150,166,598
City of Rosemead Direct Debt
391,153 (2)
Total Direct and Overlapping Debt
150,557,751 (3)
(1) The percentage of overlapping debt applicable to the city is estimated using taxable property value, Applicable percentages
were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the
city divided by the district's total taxable assessed value.
(2) Details regarding the City's direct debt can be found in the notes to the financial statements.
(3) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non -bonded capital lease
obligations.
133
CITY OF ROSEMEAD
Legal Debt Margin Information
Last Ten Fiscal Years
Assessed valuation
Conversion percentage
Adjusted assessed valuation
Debt limit percentage
Debt limit
Total net debt applicable to limit:
General obligation bonds
Legal debt margin
2013-14 2014-15 2015-16 2016-17 2017-18
3,725,310,320 3,879,248,441 4,077,097,445 4,337,892,775 4,525,131,407
25% 25% 25% 25% 25%
931,327,580 969,812,110 1,019,274,361 1,084,473,194 1,131,282,852
15% 15% 15% 15% 15%
139,699,137 145,471, 817 152, 891,154 162,670, 979 169,692,428
139,699,137 145,471, 817 152, 891,154 162,670, 979 169,692,428
Total debt applicable to the limit
as a percentage of debt limit 0.0% 0.0% 0.0% 0.0% 0.0%
The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation.
However, this provision was enacted when assessed valuation was based upon 25% of market value. Effective with
the 1981-82 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent change in
ownership for that parcel). The computations shown above reflect a conversion of assessed valuation data for each
fiscal year from the current full valuation perspective to the 25% level that was in effect at the time that the legal debt
margin was enacted by the State of California for local governments located within the state.
Source: Rosemead Finance Department
Los Angeles County Tax Assessor's Office
134
Assessed valuation
Conversion percentage
Adjusted assessed valuation
Debt limit percentage
Debt limit
Total net debt applicable to limit:
General obligation bonds
Legal debt margin
Total debt applicable to the limit
as a percentage of debt limit
Schedule 10
2018-19 2019-20 2020-21 2021-22 2022-23
4,745,176,577
25%
4,960,200,386
25%
5,175,006,979
25%
5,306,456,661
25%
5,593,810,961
25%
1,186,294,144
15%
1,240,050, 097
15%
1,293,751,745
15%
1,326,614,165
15%
1,398,452,740
15%
177,944,122
186,007,514
194,062,762
198,992,125
209,767,911
177,944,122
186,007,514
194,062,762
198,992,125
209,767,911
0.0% 0.0% 0.0% 0.0% 0.0%
Source: Rosemead Finance Department
Los Angeles County Tax Assessor's Office
135
CITY OF ROSEMEAD
Pledged -Revenue Coverage
Last Ten Fiscal Years
Fiscal Year
Ended
June 30
Tax
Increment
Schedule 11
Tax Allocation Bonds
Debt Service
Principal Interest Coverage
2014
5,517,943
1,855,000
1,790,511
1.51
2015
5,521,038
1,920,000
1,718,573
1.52
2016
5,724,292
1,995,000
1,635,578
1.58
2017
4,711,788
850,000
1,602,713
1.92
2018
3,916,792
2,320,000
1,386,038
1.06
2019
3,863,435
2,160,000
1,352,881
1.10
2020
3,634,145
2,205,000
1,229,000
1.06
2021
4,204,501
2,295,000
1,126,375
1.23
2022
4,072,385
2,405,000
1,010,125
1.19
2023
2,801,429
2,530,000
886,750
0.82
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements. Operating
expenses do not include interest or depreciation expenses.
Source: City of Rosemead, Department of Finance
136
CITY OF ROSEMEAD
Demographic and Economic Statistics
Last Ten Calendar Years
Schedule 12
Personal Income
Per Capita Personal
Unemployment
Fiscal Year Population '
(in thousands) (2)
Income
Rate (3)
Median Age (3)
2013-14 54,762
944,918
17,255
6.70%
38.8
2014-15 54,786
956,180
17,453
9.50%
39.7
2015-16 55,231
932,800
16,889
7.70%
40.4
2016-17 54,984
960,740
17,473
6.10%
40.5
2017-18 55,267
972,350
17,594
4.30%
40.7
2018-19 55,097
1,040,232
18,880
4.30%
41.5
2019-20 54,363
1,084,896
19,956
4.20%
41.4
2020-21 54,229
1,175,005
21,667
16.20%
41.9
2021-22 50,511
1,181,679
23,394
9.30%
41.3
2022-23 50,022
1,237,499
24,739
4.60%
41.8
Sources: ')California State Department of Finance
2) US Census Data
3) California Employment Development Department
Compilied by HdL, Coren & Cone
137
CITY OF ROSEMEAD Schedule 13
Principal Employers
Current Year and Ten Years Ago
2023 2014
Percent of Percent of
Number of Total Number of Total
Employer Employees Rank Employment' Employees Rank Employment 2
Southern California Edison
2,722
1
11.68%
4,100
1
17.08%
Garvey School District
881
2
3.78%
804
2
3.35%
Panda Restaurant Group, Inc.
647
3
2.78%
400
3
1.67%
Wal-Mart
594
4
2.55%
389
4
1.62%
Rosemead School District
329
5
1.41%
337
5
1.40%
Target
200
6
0.86%
200
6
0.83%
Hemetic Seal Corporation
120
7
0.52%
189
7
0.79%
Lucille's
100
8
0.43%
-
-
-
University of the West
100
9
0.43%
-
-
-
Don Bosco Tech
80
11
0.34%
90
8
0.38%
Olive Garden
115
9
0.48%
Double Tree
100
10
100
10
0.42%
' Based upon Employment Development Department's estimate of 24,000 residents employed - June 2014
2 Based upon Employment Development Department's estimate of 23,300 residents employed - June 2023
Disclaimer: The City of Rosemead makes no claims concerning the accuracy of data provided nor assumes any
liability resulting from the use of information herein.
Source: City of Rosemead
138
.yYWas] 2:16 94�,I:c1k,
Top 25 Sales Tax Producers
Current Year and Ten Years Ago
Schedule 14
2023 2014
Sales Tax Producers Business Category Sales Tax Producers Business Category
7 Eleven Service Stations 7 Eleven Service Stations
888 Seafood
Altec Industries
AutoZone
Beacon Roofing Supply
Boiling Crab
Carbeeco
Circle K
Casual Dining
Heavy Industrial
Automotive Supply Stores
Buiding Material
Casual Dining
Used Automotive Dealers
Service Stations
Fastrack Auto
Used Automotive Dealers
In N Out Burger
Quick-Servie Restaurants
Ji Rong Peking Duck
Casual Dining
Lucille's Smokehouse Bar -B -C Casual Dining
Macy's
Department Store
McDonald's
Quick-Servie Restaurants
McDonald's
Quick-Servie Restaurants
Olive Garden
Casual Dining
Panda Express
Fast -Casual Restaurants
Rosemead Valley Mart Mobil
Service Stations
Ross
Shell
T Mobile
Target
Ulta Beauty
Walmart Supercenter
Well Auto
Firms Listed Alphabetically
Family Apparel
Service Stations
Electronics/Appliance Stores
Discount Dept Stores
Specialty Stores
Discount Dept Stores
Used Automotive Dealers
888 Seafood
AutoZone
Bed Bath & Beyond
CH Auto
Circle K
CVS Pharmacy
Dunn Edwards Paint
East Gourmet Seafood
In N Out Burger
Macys
Mbest Co
Mc Donalds
Mc Donalds
Olive Garden
Panda Express
Rosemead Mobil
Casual Dining
Automotive Supply Stores
Home Furnishings
Used Automotive Dealers
Service Stations
Drug Stores
Paint/Glass/Wallpaper
Casual Dining
Quick -Service Resturants
Department Stores
Heavy Industrial
Quick -Service Resturants
Quick -Service Resturants
Casual Dining
Fast -Casual Restaurants
Service Stations
Rosemead Valley Mart Mobi Service Stations
Sea Harbour Seafood Casual Dining
Shell
Service Stations
T Mobile
Electronics/Appliance Store:
Target
Discount Dept Stores
TGI Fridays
Casual Dining
USA Gasoline
Service Stations
Walmart Supercenter
Discount Dept Stores
Source: State Board of Equalization, California Department of Taxes and Fees Administration, State Controller's
Office, The HdL Companies
139
CITY OF ROSEMEAD Schedule 15
Full-time City Positions by Function
Last Ten Fiscal Years
Function 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
General government
10
11
12
12
12
13
14
15
19
19
Public safety
7
6
6
7
7
3
3
8
8
6
Community
development
6
6
7
7
7
10
11
6
5
7
Public works
20
20
20
20
21
23
23
21
21
25
Parks and recreation
10
10
8
9
9
8
9
8
8
9
Total 53 53 53 55 56 57 60 58 61 66
i
The City of Rosemead contracts with the Los Angeles County Sheriffs Department for police services and is
part of the Los Angeles County Fire Protection District which provides fire services; therefore, the position
numbers shown above do not include staffing for those services. Public safety positions within the City include
public safety administration, code enforcement, and parking control.
Source: City of Rosemead, Finance Department
140
CITY OF ROSEMEAD
Operating Indicators by Function
Last Ten Fiscal Years
Schedule 16
Source: City of Rosemead
141
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Police:
Arrests
1,356
1,585
1,339
1,046
1,256
1,817
2,649
2,966
1,404
1,867
Parking citations issued
16,110
7,863
8,047
7,676
8,086
6,244
7,898
9,472
7,725
7,501
Fire:
Number of emergency calls
2,823
3,212
3,352
3,206
3,822
2,823
2,789
2,803
6,098
4,420
Inspections
2,026
2,793
2,564
2,311
2,430
2,288
2,267
2,256
2,132
1,264
Public works:
Street resurfacing (miles)
1.60
0.55
1.00
0.70
0.80
1.00
0
0
4.6
1.92
Parks and recreation:
Number of recreation classes
724
839
871
873
707
631
387
210
491
617
Number of facility rentals
4,005
2,607
3,070
6,226
3,679
2,508
2,387
1,244
2,797
3,191
Source: City of Rosemead
141
CITY OF ROSEMEAD
Capital Asset Statistics by Function
Last Ten Fiscal Years
Administration:
City Hall
Public safety:
Public Safety Center
Public works:
Corporate Yard
Streets (miles)
Streetlights
Traffic signals
Parks and recreation:
Parks
Community centers
Dinsmoor House
Source: City of Rosemead
Schedule 17
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
77.6
77.6
81.9
81.9
81.8
81.8
81.8
81.8
81.8
81.8
2,712
2,712
2,712
2,712
2,511
2,511
2,511
2,511
2,684
2,684
42
42
41
42
42
42
42
42
43
43
10
10
10
10
11
12
12
12
12
12
2
2
2
2
2
2
2
2
2
2
1
1
1
1
1
1
1
1
1
1
142
Attachment B
Auditors' Letter to Mayor and City Council
for Year Ended June 30, 2023
LS L•�::
December 14, 2023
To the Honorable Mayor and Members of the City Council
City of Rosemead, California
We have audited the financial statements of the governmental activities, each major fund, and the aggregate
remaining fund information of the City of Rosemead, California (the "City") for the year ended June 30, 2023.
Professional standards require that we provide you with information about our responsibilities under generally
accepted auditing standards (and, if applicable, Government Auditing Standards and the Uniform Guidance), as
well as certain information related to the planned scope and timing of our audit. We have communicated such
information in our letter to you dated July 12, 2023. Professional standards also require that we communicate to
you the following information related to our audit.
Significant Audit Matters
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting
policies used by the City are described in Note 1 to the financial statements. As described in Note 1 to the financial
statements, the City changed accounting policies related to subscription -based information technology
arrangements, and by adopting Statement of Governmental Accounting Standards (GASB Statement) No. 96, in
fiscal year 2022-2023. Accordingly, the cumulative effect of the accounting change as of the beginning of the year
is reported in the Statement of Revenues, Expenses, and Changes in Net Position. We noted no transactions
entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant
transactions have been recognized in the financial statements in the proper period.
Accounting estimates are an integral part of the financial statements prepared by management and are based on
management's knowledge and experience about past and current events and assumptions about future events.
Certain accounting estimates are particularly sensitive because of their significance to the financial statements and
because of the possibility that future events affecting them may differ significantly from those expected. The most
sensitive estimates affecting the City's financial statements were:
Management's estimates of the net pension liability and asset, and net other postemployment
benefits liability, are based on actuarial valuation estimates. We evaluated the methods,
assumptions, and data used to develop the actuarial valuation estimates in determining that they
are reasonable in relation to the financial statements taken as a whole.
The financial statement disclosures are neutral, consistent, and clear.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit,
other than those that are clearly trivial, and communicate them to the appropriate level of management. We are
pleased to report that no such disagreements arose during the course of our audit.
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City of Rosemead, California
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter,
whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor's
report. We are pleased to report that no such disagreements arose during the course of our audit.
Management Representations
We have requested certain representations from management that are included in the management representation
letter dated December 14, 2023.
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting matters,
similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting
principle to the City's financial statements or a determination of the type of auditor's opinion that may be expressed
on those statements, our professional standards require the consulting accountant to check with us to determine
that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other
accountants.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards,
with management each year prior to retention as the City's auditors. However, these discussions occurred in the
normal course of our professional relationship and our responses were not a condition to our retention.
Other Matters
We applied certain limited procedures to management's discussion and analysis, the budgetary comparison
schedules for the General Fund and the major special revenue funds, and the required pension and other
postemployment benefits schedules, which are required supplementary information (RSI) that supplements the
basic financial statements. Our procedures consisted of inquiries of management regarding the methods of
preparing the information and comparing the information for consistency with management's responses to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial
statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI.
We were engaged to report on the combining and individual fund financial statements and schedules which
accompany the financial statements but are not RSI. With respect to this supplementary information,
we made certain inquiries of management and evaluated the form, content, and methods of preparing the
information to determine that the information complies with accounting principles generally accepted in the
United States of America, the method of preparing it has not changed from the prior period, and the information is
appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the
supplementary information to the underlying accounting records used to prepare the financial statements or to the
financial statements themselves.
Restriction on Use
This information is intended solely for the information and use of City Council and management of the City and is
not intended to be, and should not be, used by anyone other than these specified parties.
Very truly yours,
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Brea, California
Attachment C
Independent Auditors' Report on Internal
Control over Financial Reporting
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INDEPENDENT AUDITORS' 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
To the Honorable Mayor and Members of the City Council
City of Rosemead, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America
and the standards applicable to financial audits contained in Government Auditing Standards issued by the
Comptroller General of the United States, the financial statements of the governmental activities, each major fund,
and the aggregate remaining fund information of .City of Rosemead, California (the "City"), as of and for the year
ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City's basic
financial statements, and have issued our report thereon dated December 14, 2023.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City's internal control over
financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the
circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of
expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion
on the effectiveness of the City's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,
misstatements, on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal
control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements
will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a
combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough
to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and
was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant
deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we
consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were
not identified.
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free from material
misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements, noncompliance with which could have a direct and material effect on the financial statements.
However, providing an opinion on compliance with those provisions was not an objective of our audit, and
accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance
or other matters that are required to be reported under Government Auditing Standards.
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City of Rosemead, California
Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the
results of that testing, and not to provide an opinion on the effectiveness of the City's internal control or on
compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards
in considering the City's internal control and compliance. Accordingly, this communication is not suitable for any
other purpose.
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Brea, California
December 14, 2023
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Attachment D
Report on Agreed -Upon Procedures Applied
to Appropriations Limit
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INDEPENDENT ACCOUNTANTS' REPORT ON AGREED-UPON
PROCEDURES APPLIED TO APPROPRIATIONS LIMIT WORKSHEETS
To the Honorable Mayor and Members of the City Council
City of Rosemead, California
We have performed the procedures enumerated below on the accompanying Appropriations Limit
Worksheet No. 6 (or other alternative computation) of the City of Rosemead, California, for the
year ended June 30, 2023. These procedures are the responsibility of the City, which were agreed to by
the City of Rosemead and the League of California Cities (as presented in the publication entitled
Agreed -Upon Procedures Applied to the Appropriations Limitation Prescribed by Article XIII -B of the
California Constitution), were performed solely to assist the City of Rosemead in meeting the
requirements of Section 1.5 of Article XIII -B of the California Constitution. The City of Rosemead's
management is responsible for the Appropriations Limit Worksheet No. 6 (or other alternative
computation).
The City has agreed to and acknowledged that the procedures performed are appropriate to meet the
intended purpose of recomputing the Appropriations Limit Worksheet No. 6 (or other alternative
computation). This report may not be suitable for any other purpose. The procedures performed may not
address all the items of interest to a user of this report and may not meet the needs of all users of this
report and, as such, users are responsible for determining whether the procedures performed are
appropriate for their purposes.
The procedures performed and our findings were as follows:
1. We obtained the completed Worksheets No. 1 through No. 7 (or other alternative computations) and
compared the limit and annual adjustment factors included in those worksheets to the limit and
annual adjustment factors that were adopted by resolution of the City Council. We also compared the
population and inflation options included in the aforementioned worksheets to those that were
selected by a recorded vote of the City Council.
Finding: No exceptions were noted as a result of our procedures.
2. For the accompanying Appropriations Limit Worksheet No. 6, we multiplied line A, last year's limit, by
line D, ratio of change and compared the resulting amount to line E, this year's limit.
Finding: No exceptions were noted as a result of our procedures.
3. We compared the current year information presented in the accompanying Appropriations Limit
Worksheet No. 6 to the other worksheets described in No. 1 above.
Finding: No exceptions were noted as a result of our procedures.
4. We compared the prior year appropriations limit presented in the accompanying Appropriations Limit
Worksheet No. 6 to the prior year appropriations limit adopted by the City Council for the prior year.
Finding: No exceptions were noted as a result of our procedures.
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To the Honorable Mayor and Members of the City Council
City of Rosemead, California
We were engaged by the City to perform this agreed-upon procedures engagement and conducted our
engagement in accordance with attestation standards established by the AICPA. We were not engaged
to and did not conduct an examination or review engagement, the objective of which would be the
expression of an opinion or conclusion, respectively, on the accompanying Appropriations Limit
Worksheet No. 6 (or other alternative computation). Accordingly, we do not express such an opinion or
conclusion. Had we performed additional procedures, other matters might have come to our attention that
would have been reported to you.
We are required to be independent of the City and to meet our other ethical responsibilities, in
accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.
This report is intended solely for the information of the City Council and management of the
City of Rosemead and is not intended to be, and should not be, used by anyone other than these
specified parties.
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Brea, California
July 12, 2023
CITY OF ROSEMEAD
2022-2023
APPROPRIATIONS LIMIT CALCULATION
A. 2021-2022 APPROPRIATIONS LIMIT:
B. 2022-2023 CHANGE IN PER CAPITA PERSONAL
INCOME:
C. 2022-2023 CHANGE IN POPULATION:
D. RATIO OF CHANGE (1.0755 x 0.9939)
E. 2022-2023 APPROPRIATIONS LIMIT:
(54,976,824 x 1.068939450)
$ 54,976,824
1.0755%
0.9939%
x 1.068939450
$ 58 766.896
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Attachment E
Rosemead Housing Development
Corporation Basic Financial Statements
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ROSEMEAD HOUSING DEVELOPMENT CORPORATION
A COMPONENT UNIT OF
THE CITY OF ROSEMEAD, CALIFORNIA BASIC FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30 2023 (WITH SUPPLEMENTARY INFORMATION
' AND INDEPENDENT AUDITORS' REPORT
Focused
on YOU
ROSEMEAD HOUSING
DEVELOPMENT CORPORATION
A Component Unit of
The City of Rosemead, California
Basic Financial Statements
(With Supplementary Information)
And
Independent Auditors' Report
For The Year Ended
June 30, 2023
ROSEMEAD HOUSING
DEVELOPMENT CORPORATION
A Component Unit of
The City of Rosemead, California
Basic Financial Statements
(With Supplementary Information)
And
Independent Auditors' Report
For The Year Ended
June 30, 2023
Table of Contents
Page
Number
INDEPENDENT AUDITORS' REPORT.....................................................................................................................1
BASIC FINANCIAL STATEMENTS
Statementsof Net Position...................................................................................................................................4
Statementsof Activities...............:........................................................................................................................5
BalanceSheet......................................................................................................................................................6
Reconciliation of the Balance Sheet of Governmental Fund
to the Statement of Net Position..........................................................................................................................7
Statement of Revenues, Expenditures and Changes in Fund Balance...............................................................8
Reconciliation of the Statement of Revenues, Expenditures, and
Changes in Fund Balance of Governmental Fund to the
Statementof Activities..........................................................................................................................................9
Notes to Financial Statements...........................................................................................................................10
REQUIRED SUPPLEMENTARY INFORMATION
Notes to Required Supplementary Information..................................................................................................17
BudgetaryComparison Schedule......................................................................................................................18
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENTAUDITING STANDARDS......................................................................19
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INDEPENDENT AUDITORS' REPORT
To the Board of Directors
Rosemead Housing Development Corporation
City of Rosemead, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities and General Fund of the
Rosemead Housing Development Corporation (the Corporation), a component unit of the City of Rosemead,
California (the "City"), as of and for the year ended June 30, 2023, and the related notes to the financial statements,
which collectively comprise the Corporation's basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective
financial position of the governmental activities and General Fund of the Corporation, as of June 30, 2023, and the
respective changes in financial position for the year then ended in accordance with accounting principles generally
accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America
and the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Our responsibilities under those standards are further described in the
Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be
independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical
requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our audit opinions.
Emphasis of Matter
Component Unit Reporting
As discussed in Note 1, the financial statements of the Corporation are intended to present the financial position
and the changes in financial position of only that portion of the governmental activities and General Fund of only
that portion of the City that is attributable to the transactions of the Corporation. They do not purport to, and do not,
present fairly the financial position of the City, as of June 30, 2023, the changes in its financial position, or, where
applicable, its cash flows for the year then ended in accordance with accounting principles generally accepted in
the United States of America. Our opinion is not modified with respect to this matter.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with
accounting principles generally accepted in the United States of America, and for the design, implementation, and
maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free
from material misstatement, whether due to fraud or error.
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To the Board of Directors
Rosemead Housing Development Corporation
City of Rosemead, California
In preparing the financial statements, management is required to evaluate whether there are conditions or events,
considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for
twelve months beyond the financial statement date, including any currently known information that may raise
substantial doubt shortly thereafter.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a
guarantee that an audit conducted in accordance with generally accepted auditing standards and
Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting
a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are
considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the
judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditing
Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or
error, and design and perform audit procedures responsive to those risks. Such procedures include
examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the City's internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise
substantial doubt about the City's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit, significant audit findings, and certain internal control -related matters that we identified
during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the budgetary comparison
schedule for the General Fund, as listed on the table of contents, be presented to supplement the basic financial
statements. Such information is the responsibility of management and, although not a part of the basic financial
statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part
of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical
context. We have applied certain limited procedures to the required supplementary information in accordance with
auditing standards generally accepted in the United States of America, which consisted of inquiries of management
about the methods of preparing the information and comparing the information for consistency with management's
responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the
basic financial statements. We do not express an opinion or provide any assurance on the information because the
limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
2
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To the Board of Directors
Rosemead Housing Development Corporation
City of Rosemead, California
Management has omitted the management's discussion and analysis that accounting principles generally accepted
in the United States of America require to be presented to supplement the basic financial statements. Such missing
information, although not a part of the basic financial statements, is required by the Governmental Accounting
Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial
statements in an appropriate operational, economic, or historical context. Our opinions on the basic financial
statements are not affected by this missing information.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 14, 2023, on
our consideration of the City's internal control over the Corporation's financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The
purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal
control over the Corporation's financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering City's internal control over the
Corporation's financial reporting and compliance.
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Brea, California
December 14, 2023
3
ROSEMEAD HOUSING DEVELOPMENT CORPORATION
A COMPONENT UNIT OF THE CITY OF ROSEMEAD, CALIFORNIA
Statement of Net Position
June 30, 2023
Assets:
Cash and investments
Accounts receivable
Accrued interest
Due from other governments
Capital assets, net of depreciation/amortization
Total Assets
Liabilities:
Accounts payable
Deposits payable
Noncurrent liabilities:
Lease payable - due within one year
Lease payable - due in more than one year
Total Liabilities
Net Position:
Net investment in capital assets
Unrestricted
Total Net Position
Governmental
Activities
$ 512,827
17,660
1,543
255,577
11,355,914
12,143,521
288,066
46,665
183,400
5,178,617
5,696,748
5,993,897
452,876
$ 6,446,773
The notes to financial statements are an integral part of this statement.
4
ROSEMEAD HOUSING DEVELOPMENT CORPORATION
A COMPONENT UNIT OF THE CITY OF ROSEMEAD, CALIFORNIA
Statement of Activites
For the Year Ended June 30, 2023
Functions/Programs
Governmental Activities:
General Government
Total Governmental Activities
$ 1,218,418 $ 488,873 $ 520,694 $ (208,851)
$ 1,218,418 $ 488,873 $ 520,694 (208,851)
General Revenues:
Net(Expenses)
Investment income
Revenues and
Other
Changes in
Program Revenues
Net Position
Operating
(200,419)
Charges for Contributions
Governmental
Expenses Services and Grants
Activities
$ 1,218,418 $ 488,873 $ 520,694 $ (208,851)
$ 1,218,418 $ 488,873 $ 520,694 (208,851)
General Revenues:
Investment income
4,041
Other
4,391
Total General Revenues
8,432
Change in Net Position
(200,419)
Net Position - Beginning of Year
6,647,192
Net Position - End of Year $
6,446,773
The notes to financial statements are an integral part of this statement.
5
ROSEMEAD HOUSING DEVELOPMENT CORPORATION
A COMPONENT UNIT OF THE CITY OF ROSEMEAD, CALIFORNIA
Balance Sheet
Governmental Fund
June 30, 2023
The notes to financial statements are an integral part of this statement.
11
General Fund
Assets:
Cash and investments
$
512,827
Accounts receivable
17,660
Accrued interest
1,543
Due from other governments
255,577
Total Assets
$
787,607
Liabilities and Fund Balance:
Liabilities:
Accounts payable
$
288,066
Deposits payable
46,665
Total Liabilities
334,731
Fund Balance:
Unassigned
452,876
Total Fund Balance
452,876
Total Liabilities and Fund Balance
$
787,607
The notes to financial statements are an integral part of this statement.
11
ROSEMEAD HOUSING DEVELOPMENT CORPORATION
A COMPONENT UNIT OF THE CITY OF ROSEMEAD, CALIFORNIA
Reconciliation of the Balance Sheet of Governmental Funds
To the Statement of Net Position
June 30, 2023
Fund balance of governmental funds
Amounts reported for governmental activities in the statement of net position are
different because:
452,876
Capital assets net of depreciation have not been included as financial resources
in governmental fund activity. 11,355,914
Long-term debt that have not been included in the governmental fund activity:
Lease payable (5,362,017)
Net Position of Governmental Activities
The notes to financial statements are an integral part of this statement.
$ 6,446,773
ROSEMEAD HOUSING DEVELOPMENT CORPORATION
A COMPONENT UNIT OF THE CITY OF ROSEMEAD, CALIFORNIA
Statement of Revenues
Expenditures and Changes in Fund Balance
Governmental Fund
For the Year Ended June 30, 2023
Revenues:
Intergovernmental
Use of money and property
Miscellaneous
Total Revenues
Expenditures:
Current:
Operating costs
Administrative services paid to City of Rosemead
Debt service:
Principal
Total Expenditures
Net change in fund balance
Fund Balance, Beginning of Year
Fund Balance, End of Year
The notes to the financial statements are an integral part of this statement.
General Fund
$ 520,694
492,914
4,391
1,017,999
547,845
264,400
183,400
995,645
22,354
430,522
$ 452,876
ROSEMEAD HOUSING DEVELOPMENT CORPORATION
A COMPONENT UNIT OF THE CITY OF ROSEMEAD, CALIFORNIA
Reconciliation of the Statement of Revenues, Expenditures,
and Changes in Fund Balances of Governmental Funds
To the Statement of Activites
For the Year Ended June 30, 2023
Net change in fund balance - total governmental funds
Amounts reported for governmental activities in the statement of activities are
different because:
22,354
Governmental funds report capital outlays as expenditures. However, in the statement
of activities, the costs of those assets is allocated over their estimated useful lives
as depreciation and amortization expense. This is the amount by which capital outlays exceeded
depreciation and amortization in the current period. (406,173)
Repayment of long-term debt principal is an expenditure in the governmental funds, but the
repayment reduces long-term liabilities in the statement of net position.
Lease payable repayments 183,400
Change in Net Position of Governmental Activities
The notes to financial statements are an integral part of this statement.
$ (200,419)
ROSEMEAD HOUSING DEVELOPMENT CORPORATION
A COMPONENT UNIT OF THE CITY OF ROSEMEAD, CALIFORNIA
Notes to the Financial Statements
June 30, 2023
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reaortina Entit
The Rosemead Housing Development Corporation (the Corporation) is a nonprofit corporation whose purpose is to
provide assistance to the Rosemead Community Development Commission (the Commission) to account for the
construction, financing and operations of low- and moderate -income housing for the benefit of the City of Rosemead
(the City). The Corporation currently maintains the Angelus and Garvey Senior Housing facilities. The Corporation
is exempt from income taxes under Section 501 (c)(3) of the Internal Revenue Code (IRC) and applicable state
statutes.
Governmental Accounting Standards Board (GASB) Statement No. 14, The Financial Reporting Entity, defines the
reporting entity as the primary government and those component units for which the primary government is
financially accountable. Financial accountability is defined as appointment of a voting majority of the component
unit's Board and either (a) the primary government has the ability to impose its will or (b) the possibility exists that
the component unit will provide a financial benefit to or impose a financial burden on the primary government. Since
the Board of Directors of the Commission and the Council members also serve as the Board of Directors of the
Corporation, the Commission and the City, in effect, have the ability to influence and control operations.
Therefore, the City has oversight responsibility for the Corporation. Accordingly, in applying the criteria of
GASB Statement No. 14, the financial statements of the Corporation are included in the City's financial reports.
The Corporation has the same fiscal year as the City. These financial statements contain information for the
Corporation only. The City's financial report may be obtained by contacting the Financial Department of the City.
As a result of the Assembly Bill X1 26 signed into law as part of the State of California's budget package on
June 29, 2011, the Rosemead Community Development Commission ceased to exist as of February 1, 2012. On
January 10, 2012, the City Council elected to serve as the successor agency to the Commission and retain the
housing assets and functions previously held and performed by the Commission.
B. Basis of Accounting and Measurement Focus
The basic financial statements of the Corporation are composed of the following:
• Government -wide financial statements
• Fund financial statements
• Notes to the basic financial statements
Government -wide Financial Statements
Government -wide financial statements display information about the reporting government as a whole, except for
its fiduciary activities. These statements include separate columns for the governmental and business -type activities
of the primary government (including its blended component units), as well as its discretely presented component
units. The Corporation has no business -type activities or discretely presented component units.
Government -wide financial statements are presented using the economic resources measurement focus and the
accrual basis of accounting. Under the economic resources measurement focus, all (both current and long-term)
economic resources and obligations of the reporting government are reported in the government -wide financial
statements. Basis of accounting refers to when revenues and expenditures are recognized in the accounts and
reported in the financial statements. Under the accrual basis of accounting, revenues, expenses, gains, losses,
assets, and liabilities resulting from exchange and exchange -like transactions are recognized when the exchange
takes place. Revenues, expenses, gains, losses, assets, and liabilities resulting from nonexchange transactions
are recognized in accordance with the requirements of GASB Statement No. 33.
Program revenues include charges for services and payments made by parties outside of the reporting
government's citizenry if that money is restricted to a particular program. Program revenues are netted with program
expenses in the statement of activities to present the net cost of each program.
10
ROSEMEAD HOUSING DEVELOPMENT CORPORATION
A COMPONENT UNIT OF THE CITY OF ROSEMEAD, CALIFORNIA
Notes to the Financial Statements
June 30, 2023
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Amounts paid to acquire capital assets are capitalized as assets in the government -wide financial statements, rather
than reported as expenditures. Proceeds of long-term debt are recorded as a liability in the government -wide
financial statements, rather than as another financing source. Amounts paid to reduce long-term indebtedness of
the reporting government are reported as a reduction of the related liability, rather than as an expenditure.
Fund Financial Statements
The underlying accounting system of the Corporation is organized and operated on the basis of separate funds,
each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with
a separate set of self -balancing accounts that comprise its assets, liabilities, fund balance, revenues and
expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual
funds based upon the purposes for which they are to be spent and the means by which spending activities are
controlled.
Fund financial statements for the primary government's governmental, proprietary, and fiduciary funds are
presented after the government -wide financial statements. These statements display information about major funds
individually and nonmajor funds in the aggregate for governmental and enterprise funds. Fiduciary statements
include financial information for fiduciary funds and similar component units. Fiduciary funds primarily represent
assets held by the Corporation in a custodial capacity for other individuals or organizations. The Corporation has
no enterprise funds or fiduciary funds.
Governmental Funds
In the fund financial statements, governmental funds and agency funds are presented using the modified -accrual
basis of accounting. Their revenues are recognized when they become measurable and available. Measurable
means that the amounts can be estimated, or otherwise determined. Available means that the amounts were
collected during the reporting period or soon enough thereafter to be available to finance the expenditures accrued
for the reporting period. The Corporation uses a sixty day availability period.
Revenue recognition is subject to the measurable and available criteria for the governmental funds in the fund
financial statements. Exchange transactions are recognized as revenues in the period in which they are earned
(i.e., when the related goods or services are provided). Locally imposed derived tax revenues are recognized as
revenues in the period in which the underlying exchange transaction upon which they are based takes place.
Imposed non-exchange transactions are recognized as revenues in the period for which they were imposed. If the
period of use is not specified, they are recognized as revenues when an enforceable legal claim to the revenues
arises or when they are received, whichever occurs first. Government -mandated and voluntary nonexchange
transactions are recognized as revenues when all applicable eligibility requirements have been met.
In the fund financial statements, governmental funds are presented using the current financial resources
measurement focus. This means that only current assets and current liabilities are generally included on their
balance sheets. The reported fund balance (net current assets) is considered to be a measure of
"available spendable resources." Governmental fund operating statements present increases (revenues and other
financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they
are said to present a summary of sources and uses of "available spendable resources" during a period.
Non-current portions of long-term receivables due to governmental funds are reported on their balance sheets
despite their spending measurement focus. Special reporting treatments are used to indicate, however, that they
should not be considered "available spendable resources," since they do not represent net current assets.
Recognition of governmental fund type revenues represented by noncurrent receivables are deferred until they
become current receivables.
11
ROSEMEAD HOUSING DEVELOPMENT CORPORATION
A COMPONENT UNIT OF THE CITY OF ROSEMEAD, CALIFORNIA
Notes to the Financial Statements
June 30, 2023
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Because of their spending measurement focus, expenditure recognition for governmental fund types excludes
amounts represented by noncurrent liabilities. Since they do not affect net current assets, such long-term amounts
are not recognized as governmental fund type expenditures or fund liabilities.
Amounts expended to acquire capital assets are recorded as expenditures in the year that resources were
expended, rather than as fund assets. The proceeds of long-term debt are recorded as an other financing source
rather than as a fund liability. Amounts paid to reduce long-term indebtedness are reported as fund expenditures.
When both restricted and unrestricted resources are combined in a fund, expenses are considered to be paid first
from restricted resources, and then from unrestricted resources.
C. Major Fund
The Corporation reports the General Fund as its major fund.
D. Cash and Investments
Cash includes amounts in demand and time deposits. Investments, if any, are reported in the accompanying
balance sheet at fair value, except for certain money market and investment contracts that are reported at cost
because they are not transferable, and they have terms that are not affected by changes in market interest rates.
Changes in fair value that occur during a fiscal year are recognized as income from property and investments
reported for that fiscal year. Income from property and investments includes interest earnings, changes in fair value,
any gains or losses realized upon the liquidation, maturity or sale of investments, property rentals, and the sale of
City -owned property.
E. Capital Assets
Capital assets, which include buildings and improvements, furniture and equipment, and lease assets are reported
as part of governmental activities in the government -wide financial statements. Capital assets are defined by the
Corporation as assets with an initial, individual cost of more than $10,000 and an estimated useful life in excess of
one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed.
Donated capital assets are recorded at acquisition value at the date of donation.
The cost of normal maintenance and repairs that do not add to the value of an asset or materially extend an asset's
useful life are not capitalized.
Costs associated with construction in progress are recorded in their respective capital assets category upon
approval by the Corporation's governing board, which approximates the completion date.
Depreciation/amortization is charged to operations using the straight-line method based on the estimated useful life
of an asset. The estimated useful lives of depreciable assets are as follows:
Buildings 50 years
Improvement 15 years
Furniture and equipment 7 years
Lease assets 55 years
F. Income Taxes
The Corporation is exempt from federal income taxes under Section 501(c)(3) of the IRC and a similar exemption
under state law.
12
ROSEMEAD HOUSING DEVELOPMENT CORPORATION
A COMPONENT UNIT OF THE CITY OF ROSEMEAD, CALIFORNIA
Notes to the Financial Statements
June 30, 2023
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
G. Fund Balance
The Corporation reports fund balance in classifications that describe the relative strength of the spending constraints
placed on the purposes for which resources can be used:
• Nonspendable — amounts that are not in a spendable form (such as inventory) or are required to be maintained
intact.
• Restricted — amounts constrained to specific purposes by their providers (such as grantors, bondholders and
higher levels of government), through constitutional provisions or by enabling legislation.
• Committed — amounts constrained to specific purposes by a government itself, using the highest level of
decision-making authority; to be reported as committed, amounts cannot be used for any other purpose unless
the government takes the same highest -level action to remove or change the constraint.
• Assigned — amounts a government intends to use for a specific purpose; intent can be expressed by the
governing body or by an official or body to which the governing body delegates the authority.
• Unassigned — amounts that are for any purpose; positive amounts are reported only in a general fund.
The Board of Directors establishes (and modifies or rescinds) fund balance commitments by passage of an
ordinance or resolution. The Board designates the Finance Director and City Manager as the Corporation officials
to determine, define, and make the necessary account or fund transfers for the amounts to those components of
fund balance that are classified as "Assigned Fund Balance."
When both restricted and unrestricted resources are available for use when an expenditure is incurred, it is the
Corporation's policy to use restricted resources first, then unrestricted resources as they are needed. It is the
Corporation's policy to consider committed amounts as being reduced first, followed by assigned amounts, and
then unassigned amounts when expenditures are incurred for purposes for which amounts in any of those
unrestricted fund balance classifications could be used.
H. Rental Income
A management company collects rent payments on the first day of the month and the corporation recognizes
revenue in the month due. Monthly rental income per unit ranges from $250 to $450 and is approved by the annual
budget. All rental activities involving the Corporation are on a month-to-month basis and subsequently are exempt
from reporting under GASB 87.
I. 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 could differ from those estimates.
13
ROSEMEAD HOUSING DEVELOPMENT CORPORATION
A COMPONENT UNIT OF THE CITY OF ROSEMEAD, CALIFORNIA
Notes to the Financial Statements
June 30, 2023
NOTE 2: CASH AND INVESTMENTS
Cash and investments at June 30, 2023 consisted of demand deposits with financial institutions and the
Corporation's share in the pooled cash of the City of Rosemead's investments. The carrying amount and the bank
balance of the Corporation's demand deposits was $512,827.
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in event of the failure of a depository financial institution, a
government will not be able to recover its deposits or will not be able to recover collateral securities that are in the
possession of an outside party. The Corporation maintains its bank accounts at financial institutions that are
collateralized with securities held by the pledging financial institution, or by its Trust Department or agent, but not
in the Corporation's name. The primary difference between the carrying amount and the bank balance are deposits
in transit and outstanding checks. In accordance with state statutes, the Corporation maintains deposits at those
depository institutions insured by the FDIC. The California Government Code (the Code) requires California banks
and savings and loan associations to collateralize the deposits of governmental entities by pledging government
securities as collateral. The market value of pledge securities must equal at least 110% of those deposits. California
law also allows financial institutions to secure the deposits of governmental entities by pledging first trust deed
mortgage notes having a collateral value of 150% of a corporation's total deposits. As of June 30, 2023, the
Corporation had no deposits with financial institutions in excess of federal depository insurance limits.
NOTE 3: REIMBURSEMENT AGREEMENTS AND RELATED PARTY TRANSACTIONS
The Corporation has entered into a reimbursement agreement with the City for the Corporation's administrative
services. The Corporation paid $113,200 for administrative services to the City during the year ended
June 30, 2023. The Corporation is funded, in part, by contributions from the Successor Agency.
The Corporation has also entered into a 55 -year lease agreement with the City for the Angelus Senior Housing
facility at $60,000 annually, expiring June 2047. The Corporation has also entered into a 55 -year lease agreement
with the City for the Garvey Senior Housing facility at $72,000 annually, expiring November 2057. The lease
amounts are to increase by 2% per year or by the percentage increase in CPI, whichever is higher. The Corporation
paid $91,200 and $243,400 in lease payments to the City during the year ended June 30, 2023 for the Angelus and
Garvey Senior Housing facilities, respectively.
NOTE 4: LEASE PAYABLE
As of June 30, 2023, the lease liability outstanding and the total intangible asset net of accumulated amortization
amounted to $5,362,017. The lease payments are interest free and have not been subject to the 2% increase or
percentage increase in CPI since FY 2011/12.
Beginning Due in
Balance Additions Deletions Ending Balance One Year
$ 5,545,417 $ - $ 183,400 $ 5,362,017 $ 183,400
14
ROSEMEAD HOUSING DEVELOPMENT CORPORATION
A COMPONENT UNIT OF THE CITY OF ROSEMEAD, CALIFORNIA
Notes to the Financial Statements
June 30, 2023
NOTE 4: LEASE PAYABLE (CONTINUED)
Future principal and interest requirements to maturity for the combined capital lease liability as of June 30, 2023,
are as follows:
Future Principal and Interest Requirements
Governmental Activities
Year ending
June 30,
Principal Interest
Total Payments
2024
$ 183,400 $ -
$ 183,400
2025
183,400 -
183,400
2026
183,400 -
183,400
2027
183,400 -
183,400
2028
183,400 -
183,400
2029-2033
917,000 -
917,000
2034-2038
917,000 -
917,000
2039-2043
917,000 -
917,000
2044-2048
825,800 -
825,800
2049-2053
461,000 -
461,000
2054-2058
407,217 -
407,217
Total
$ 5,362,017 $ -
$ 5,362,017
NOTE 5: CAPITAL ASSETS
During the year ended June 30, 2023, the changes in capital assets were as follows:
Governmental Activities:
Capital assets being depreciated/amortized:
Building and improvements
Furniture and equipment
Right -to -use facilities
Total Capital Assets,
Being Depreciated/amortized
Balance at Balance at
June 30, 2022 Additions Deletions June 30, 2023
$ 11,042,597 $ - $ - $ 11,042,597
128,544 - - 128,544
10, 087, 000 - - 10, 087, 000
21,258,141 -
Less accumulated depreciation/amortization:
Building and improvements (4,825,927) (222,773)
Furniture and equipment (128,544) -
Right -to -use facilities (4,541,583) (183,400)
Total Accumulated
Depreciation/amortization
Governmental Activities
Capital Assets, Net
(9,496,054) (406,173)
21,258,141
(5,048,700)
(128,544)
(4,724,983)
(9,902,227)
$ 11,762,087 $ (406,173) $ - $ 11,355,914
Depreciation and amortization expense is allocated to the general government function in the statement of activities.
15
ROSEMEAD HOUSING DEVELOPMENT CORPORATION
A COMPONENT UNIT OF THE CITY OF ROSEMEAD, CALIFORNIA
Notes to the Financial Statements
June 30, 2023
NOTE 6: RISK MANAGEMENT
The Corporation is exposed to various risks of loss related to torts, thefts of, damage to and destruction of assets,
errors and omissions, and natural disasters. The Corporation, through the City, carries commercial liability insurance
coverage. The Corporation carries no insurance coverage for natural disasters. Since the Corporation does not
have any employees it uses employees from the City), it is not liable for injury to employees, workers' compensation,
or employee health and accident insurance. The City has had no reduction in insurance coverage, nor did the City
have any settlements that were in excess of insurance coverage in any of the three preceding years.
NOTE 7: PROPERTY MANAGEMENT AND OPERATIONS
The Corporation has two agreements with a management company, dated July 1994 and April 2002, to operate the
development housing. These agreements are automatically renewed for successive periods of one year, unless
terminated by the Corporation. The management company is responsible for collecting rents and receipts,
employing an on-site manager and maintaining financial records. Total fees paid to the management company were
$25,092 for the Angelus Senior Housing facility and $35,424 for the Garvey Senior Housing facility during fiscal
year ended June 30, 2023
16
ROSEMEAD HOUSING DEVELOPMENT CORPORATION
A COMPONENT UNIT OF THE CITY OF ROSEMEAD, CALIFORNIA
Notes to the Required Supplementary Information
June 30, 2023
NOTE 1: BUDGETARY INFORMATION
Annual budgets are adopted on a basis consistent with accounting principles generally accepted in the
United States of America for the governmental fund. All annual appropriations lapse at fiscal year-end.
On or before the last day in March of each year, all agencies of the government submit requests for appropriations
to the government's manager so that a budget may be prepared. Before the first Thursday of June, the proposed
budget is presented to the Corporation's governing board for review. The governing board holds public hearings
and a final budget must be prepared and adopted no later than June 30.
The appropriated budget is prepared by fund, function and department. The Corporation's department directors,
with approval of the Finance Director and City Manager, may make transfers of appropriations within the department
and between departments within a fund. The legal level of budgetary control (i.e., the level at which expenditures
may not legally exceed appropriations) is the fund level.
Encumbrance accounting is employed in governmental funds. Encumbrances (e.g., purchase orders, contracts)
outstanding at year end do not constitute expenditures or liabilities because the commitments will be re -appropriated
and honored during the subsequent year.
17
ROSEMEAD HOUSING DEVELOPMENT CORPORATION
A COMPONENT UNIT OF THE CITY OF ROSEMEAD, CALIFORNIA
Budgetary Comparison Schedule
For the Year Ended June 30, 2023
Budgetary Fund Balance, July 1
Available for Appropriations (Inflows):
Intergovernmental
Use of money and property
Miscellaneous
Amounts Available for Appropriations
Charges to Appropriations (Outflows):
Operating costs
575,800
575,800
Variance with
Administrative services paid to City of Rosemead
113,200
113,200
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$ 430,522 $
430,522
$ 430,522
$ -
599,400
599,400
520,694
(78,706)
429,500
429,500
492,914
63,414
4,700
4,700
4,391
(309)
1,464,122
1,464,122
1,448,521
(15,601)
Operating costs
575,800
575,800
547,845 27,955
Administrative services paid to City of Rosemead
113,200
113,200
113,200 -
Facility rent paid to City of Rosemead
334,600
334,600
334,600 -
CIP project costs
400,000
400,000
- 400,000
Total Charges to Appropriations
1,423,600
1,423,600
995,645 427,955
Budgetary Fund Balance, June 30 $ 40,522 $ 40,522 $ 452,876 $ 412,354
18
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INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON
COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENTAUDITING STANDARDS
To the Board of Directors
Rosemead Housing Development Corporation
City of Rosemead, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America
and the standards applicable to financial audits contained in Government Auditing Standards issued by the
Comptroller General of the United States, the financial statements of the governmental activities and the General
Fund of the Rosemead Housing Development Corporation (the "Corporation"), a component unit of the
City of Rosemead, California (the "City'), as of and for the year ended June 30, 2023, and the related notes to the
financial statements, which collectively comprise the Corporation's basic financial statements, and have issued our
report thereon dated December 14, 2023.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City's internal control over the
Corporation's financial reporting (internal control) as a basis for designing audit procedures that are appropriate in
the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose
of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an
opinion on the effectiveness of the City's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,
misstatements, on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal
control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements
will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a
combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough
to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and
was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant
deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we
consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were
not identified.
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Corporation's financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts,
and grant agreements, noncompliance with which could have a direct and material effect on the financial
statements. However, providing an opinion on compliance with those provisions was not an objective of our audit,
and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of
noncompliance or other matters that are required to be reported under Government Auditing Standards.
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To the Board of Directors
Rosemead Housing Development Corporation
City of Rosemead, California
Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the
results of that testing, and not to provide an opinion on the effectiveness of the Corporation's internal control or on
compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards
in considering the Corporation's internal control and compliance. Accordingly, this communication is not suitable for
any other purpose.
Brea, California
December 14, 2023
20
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Attachment F
Auditors' Letter to Board of Directors of the
Rosemead Housing Development
Corporation for Year Ended June 30, 2023
LS000L•
December 14, 2023
To the Board of Directors
Rosemead Housing Development Corporation
City of Rosemead, California
We have audited the financial statements of the governmental activities and the General Fund of the Rosemead
Housing Development Corporation (the "Corporation"), a component unit of the City of Rosemead, California for the
year ended June 30, 2023. Professional standards require that we provide you with information about our
responsibilities under generally accepted auditing standards and Government Auditing Standards, as well as certain
information related to the planned scope and timing of our audit. We have communicated such information in our
letter to you dated July 12, 2023. Professional standards also require that we communicate to you the following
information related to our audit.
Sianificant Audit Matters
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting
policies used by the Corporation are described in Note 1 to the financial statements. No new accounting policies
were adopted and the application of existing policies was not changed during the fiscal year ended June 30, 2023.
We noted no transactions entered into by the Corporation during the year for which there is a lack of authoritative
guidance or consensus. All significant transactions have been recognized in the financial statements in the proper
period.
Accounting estimates are an integral part of the financial statements prepared by management and are based on
management's knowledge and experience about past and current events and assumptions about future events.
Certain accounting estimates are particularly sensitive because of their significance to the financial statements and
because of the possibility that future events affecting them may differ significantly from those expected.
The financial statement disclosures are neutral, consistent, and clear.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit,
other than those that are clearly trivial, and communicate them to the appropriate level of management. We are
pleased to report that no such misstatements were identified during the course of our audit.
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter,
whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor's
report. We are pleased to report that no such disagreements arose during the course of our audit.
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To the Board of Directors
Rosemead Housing Development Corporation
City of Rosemead, California
Management Representations
We have requested certain representations from management that are included in the management representation
letter dated December 14, 2023.
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting matters,
similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting
principle to the Corporation's financial statements or a determination of the type of auditor's opinion that may be
expressed on those statements, our professional standards require the consulting accountant to check with us to
determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with
other accountants.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards,
with management each year prior to retention as the Corporation's auditors. However, these discussions occurred
in the normal course of our professional relationship and our responses were not a condition to our retention.
Other Matters
We applied certain limited procedures to the budgetary comparison schedule for the General Fund which is required
supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of
inquiries of management regarding the methods of preparing the information and comparing the information for
consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we
obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion
or provide any assurance on the RSI.
Future GASB Pronouncements
The following Government Accounting Standards Board (GASB) pronouncements will be effective for the following
fiscal years' audits and should be reviewed for proper implementation by management:
Fiscal Year 2023-2024
GASB Statement No. 99, Omnibus 2022.
Fiscal Year 2024-2025
GASB Statement No. 101, Compensated Absences.
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To the Board of Directors
Rosemead Housing Development Corporation
City of Rosemead, California
Future Projects
Comprehensive Project, Financial Reporting Model.
Comprehensive Project, Revenue and Expense Recognition.
Major Project, Going Concern Uncertainties and Severe Financial Stress.
Major Project, Infrastructure Assets.
Practice Issue, Classification of Nonfinancial Assets.
Practice Issue, Risks and Uncertainties Disclosures.
Pre -Agenda Research Activities, Subsequent Events.
Restriction on Use
This information is intended solely for the information and use of the Board of Directors and management of the
Corporation and is not intended to be, and should not be, used by anyone other than these specified parties.
Very truly yours,
Brea, California