CC - Item 4F - Acceptance of Annual Audit Reports for the Fiscal Year Ended June 30, 2024ROSEMEAD 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 0-e-�
DATE: FEBRUARY 11, 2025
SUBJECT: ACCEPTANCE OF ANNUAL AUDIT REPORTS FOR THE FISCAL YEAR
ENDED JUNE 30, 2024
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, 2024. 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 mandates 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.F
City Council Meeting — Acceptance of Annual Audit Reports
February 11, 2025
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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, 2024, 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
February 11, 2025
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In our opinion, the financial statements referred to above present fairly, in all material
respects, the financial position of the City as of June 30, 2024, and the changes in financial
position and its cash flows 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, 2024. 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, 2024, the City's net position (total assets and deferred
outflows of resources less liability and less deferred inflows of resources) is $124.6 million,
an increase of $10.1 million over the prior fiscal year.
• Activities —As of June 30, 2024, total revenue for all governmental funds was $50.2 million
and total expenses for all functions and programs were $40.1 million. The City's net
position increased by $10.1 million during the year through revenues in excess of expenses.
City Council Meeting — Acceptance of Annual Audit Reports
February 11, 2025
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• Fund Balance — The City's total governmental funds reported combined ending fund
balances of $65.2 million, an increase of $4.9 million over the prior year. The $4.9 million
increase is comprised of an increase to the General Fund fund balance of $2.0 million and
net increases of $2.9 million to fund balances of restricted funds. The $2.9 million
represents fund balance increases to 13 of the 22 special revenue funds reported and
includes significant increases to the City Grant Funds, Gas Tax, and Prop A. Of the $65.2
million combined fund balance, $0.4 thousand is non -spendable, $31.1 million is restricted,
$12.6 million is committed, $132 thousand is assigned, and $20.9 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, and American Rescue Plan Act 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, 2024 is $34.5 million, an increase of $2.0 million over the prior
fiscal year. Of the $34.5 million, $12.6 million is committed to approved capital projects and
the fund balance policy reserve requirement, and $21.3 million is unassigned, with the
remaining $473 thousand as either non -spendable or assigned. The unassigned fund balance
represents 76% of total General Fund expenditures, while total fund balance represents 123%
of that same amount.
Highlights of the change in fund balance are presented below:
• Total General Fund revenues, including other financing sources, of $33.1 million exceeded
expenditures of $31.1 million resulting in revenues over expenditures in the amount of $2.0
million.
• Comparison to the prior year — The fiscal year's fund revenues decreased by $0.2 million
from prior fiscal year. There were increases in property taxes by $0.5 million, decreased
sales taxes by $0.4 million, decreased transient occupancy taxes by $0.1 million, decreased
franchise tax fees by $0.1 million, and decreased parks and recreation by $0.1 million.
Building permit and plan checking collections decreased by $0.7 million due to an overall
decrease in building activity. Interest income increased by $0.8 million due to higher yields
on investments due to a combination of the Fed Reserve's Monetary Policy, market risk
and investor sentiment.
City Council Meeting — Acceptance of Annual Audit Reports
February 11, 2025
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• Comparison to the prior year — Due to increases in Community Development, Parks and
Recreation, Public Works, Public Safety, and Capital Outlay as well as decreases in
General Government, General fund expenditures were $1.5 million higher than the
previous fiscal year. The majority of the cost increase was attributable to salary and benefits
$1.2 million, Sheriff contract $1.4 million, and capital outlay and CIP project decrease of
$1.0 million.
• Comparison to Adopted Budget — The budget, as adopted for 2023-24 contained $30.1
million in estimated revenue and $29.7 million in appropriations. This projected a $0.5
million surplus for the fiscal final financial results indicate that there was a revenue of
$31.3 million, which exceeded the expenditures of $28.0 million. As a result, there was a
positive addition of $3.3 million to the fund balance of the General Fund prior to interfund
transfers.
Other Major and Non -Major Funds - The City Grants Fund and American Rescue Plan Act
Fund continue to be designated as a `Major' fund for the City due to the amount of assets and
liabilities. The City Grants Fund accounts for Federal, State, and local grants. All other funds
of the City are considered non -major. Overall, the fund balances of these Other Major and
Non -Major Funds increased by $2.9 million.
Rosemead Housin Development evelopment 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 2023-24, revenue from rent totaled $496 thousand, and the Successor Agency subsidy
for operations was $550 thousand.
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, 2023 report and City staff
believes the June 30, 2024 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, 2024.
City Council Meeting — Acceptance of Annual Audit Reports
February 11, 2025
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FISCAL IMPACT
None with this action.
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
Prepared by:
Bryan Chua, Assistant City Manager
ATTACHMENTS
A: City of Rosemead Annual Comprehensive Financial Report (ACFR)
B: Auditors' letter to Mayor and City Council for year ended June 30, 2024
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, 2024
Attachment A
City of Rosemead Annual Comprehensive Financial
Report (ACFR)
r
CITY OF ROSEMEAD, CALIFORNIA
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2024 44
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CIN OF ROSEMEAD
ROSEMEAD, CALIFORNIA
Annual Comprehensive Financial Report
With Report on Audit By
Independent Certified Public Accountants
For the Year Ended June 30, 2024
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CITY OF ROSEMEAD
ROSEMEAD, CALIFORNIA
Annual Comprehensive Financial Report With Report on Audit By Independent Certified Public Accountants
For the Year Ended June 30, 2024
Table of Contents
INTRODUCTORY SECTION ......
9
Letter of Transmittal
11
Directory of Officials
16
Organizational Chart
17
Government Finance Officers Association Award
18
FINANCIAL SECTION . , . 19
Independent Auditors' Report 21
Management's Discussion and Analysis 25
Basic Financial Statements 41
Government -Wide Financial Statements .... .... ... ......... ..... .. ... .. .. ..
43
Statement of Net Position
44
Statement of Activities
47
Fund Financial Statements ..
49
Government Fund Financial Statements... ..
51
Balance Sheet - Governmental Funds
52
Reconciliation of the Governmental Funds Balance Sheet of Governmental Funds to the
55
Statement of Net Position
Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental
56
Funds
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund
59
Balances of Governmental Funds to the Statement of Activities
Proprietary Fund Financial Statements ........
61
Statement of Net Position - Proprietary Funds
63
Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds
65
Statement of Cash Flows - Proprietary Funds
67
Fiduciary Fund Financial Statements , .. ..
69
Statement of Fiduciary Net Position - Fiduciary Funds
71
Statement of Changes in Fiduciary Net Position - Fiduciary Funds
73
Notes to The Financial Statements
75
Continued on Following Page
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CITY OF ROSEMEAD
ROSEMEAD, CALIFORNIA
Annual Comprehensive Financial Report With Report on Audit By Independent Certified Public Accountants
For the Year Ended June 30, 2024
Table of Contents
FINANCIAL SECTION (continued)
[:P=—
Required Supplementary Information
113
Budgetary Comparison Schedules
115
General Fund
117
City Grants Fund
119
American Rescue Plan
121
Pension Plan .... ...... ...... . _ . ....
123
Schedules of Proportationate Share of Net Pension Liability
125
Schedules of Plan Contributions
126
Schedule of Changes in the Net Pension Liability/(Asset) and Related Ratios - PARS Retirement
128
Enhancement Plan
157
PARS Retirement Enhancement Plan - Schedule of Contributions
130
Schedule of Changes in the Net OPEB Liability/(Asset) and Related Ratios - Safety Plan
132
Schedule of Contributions
134
Combining and Individual Fund Statements and Schedules . . ....... ... .... ........... 137
Nonmajor Governmental Funds .... ........ .. ... ..
139
Combining Balance Sheet
141
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
146
Budgetary Comparison Schedules
151
SLFRF
152
State Gas Tax
153
Local Transportation and Sidewalk Grant
154
Proposition A
155
Proposition C
156
Measure R
157
Measure M
158
Air Quality Management District
159
Street Lighting
160
Development Impact Fee Traffic
161
Development Impact Fee Public Safety
162
Development Impact Fee General Govt
163
Development Impact Fee Parks
164
Community Development Block Grant
165
HOME Fund
166
HDC Senior Housing
167
Road Maintenance and Rehabilitation Account
168
Clean Water Fund
169
SB1383 _
170
Measure R Capital Projects
171
Continued on Following Page
E
CITY OF ROSEMEAD
ROSEMEAD, CALIFORNIA
Annual Comprehensive Financial Report With Report on Audit By Independent Certified Public Accountants
For the Year Ended June 30, 2024
Table of Contents
Page
Internal Service Funds . ..... . ........ .................. .. _. .. ... 173
Combining Statement of Net Position - Internal Service Funds 175
Statement of Revenues, Expenses and Changes in Net Position - Internal Service Funds 177
Combining Statement of Cash Flows - Internal Service Funds 179
STATISTICAL SECTION .................................. .... .. . . .... .. . . ....
Financial Trends ...... ....... .. ....... ...... ........ .
... 185
Schedule 1 - Net Position by Component
186
Schedule 2 - Changes in Net Position
188
Schedule 3 - Fund Balances of Governmental Funds
190
Schedule 4 - Changes in Fund Balances of Government Funds
192
Revenue Capacity Information ....... _ ............ _ _ .. .. .. ............. ....
195
Schedule 5 -Assessed Value and Estimated Actual Value of Taxable Property
196
Schedule 6 - Direct and Overlapping Property Tax Rates
197
Schedule 7 - Principal Property Taxpayers
198
Schedule 8 - Property Tax Levies and Collections
199
Debt Capacity Information .... .. .. . .... .. ... _ .. ....
... 201
Schedule 9 - Direct and Overlapping Debt
202
Schedule 10 - Legal Debt Margin
203
Schedule 11 - Pledged Revenue Coverage
205
Demographic and Economic Information , . ...... ..
207
Schedule 12 - Demographic and Economic Statistics
208
Schedule 13 - Principal Employers
209
Schedule 14 - Top 25 Sales Tax Producers
210
Schedule 15 - Full -Time Equivalent City Government Employees by Function/Program
211
Operating Information ... _
213
Schedule 16 - Operating Indicators by Function/Program
214
Schedule 17 - Capital Asset Statistics by Function
215
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MAYOR:
Steven Ly
MAYOR PRO TEM:
Margaret Clark
COUNCIL MEMBERS:
Sandra Armenta
Sean Dang
Polly Low
December 9, 2024
To the Honorable Mayor and Members of the City Council:
City of Rosemead
8838 E. Valley Boulevard
Rosemead, California 91770
Telephone: (626) 569-2100
Fax: (626) 307-9218
We proudly present to you, the Annual Comprehensive Financial Report (ACFR) of the City of Rosemead for the
fiscal year ended June 30, 2024. 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, 2024, 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, 2024, 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.
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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 50,541. 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
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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
The Federal Reserve on Thursday December 5th made its second rate cut of 2024, with the decision coming less
than two months after the central bank's jumbo cut in September. Recent labor market weakness and inflation
near expectations were signaled by the continued Federal Funds rate cut. This measure could affect consumer
spending habits. Purchases are expected to increase as the holiday shopping season approaches. Some
consumers may spend less because of high utility, insurance, and food prices take precedence over non-essential
and gift products.
The Conference Board, a global, nonprofit think tank that provides trusted insights for the future, forecasts 1.7%
GDP growth in the United States in 2025. According to the non-profit, measured interest rate cuts should be
supported by a robust labor market and slowing Inflation over the next year, resulting in a reduction in the Fed
Funds rate target range to 3.00-3.25 percent in 2025.
Due to a stable property tax base and a reasonably diverse sales tax base, the City of Rosemead has a solid
financial foundation. 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 $12.2 million and makes up
approximately 37% of the General Fund revenues. Total assessed value from the 2023-24 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 increased from $770,000 to $1,015,000 over the past year when
comparing quarter 2 calendar year data. The residential category assessed value increased approximately $242
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 for the General Fund, at $7.0 million and
represents approximately 22% of the General Fund revenues. Consumer goods continue to be the top category of
sales tax generating businesses in Rosemead, generating 34% of sales tax revenues followed by 27% from
restaurants and hotels.
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 are above the pre -pandemic
level of $867,400 in FY 2019 to $982,300 in FY 2024.
Long -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. 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.ln 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
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play.
Major Accomplishments
The City entitled several projects, which includes the Taiwan Center Project, Myriad, and two residential small lot
subdivision projects. The Taiwan Center Project consists of a new, three-story, 42,041 square foot commercial
development with offices, retail, restaurants, and a community hall. Myriad is the City's first food hall consisting of
27 leasable areas, indoor and outdoor dining areas, and a rooftop deck. The two small lot subdivision projects
comprised of ten small lots in one project and five small lots in the second project.
The Planning Division coordinated and hosted the City's first Mayor's Home Builder & Real Estate Professionals
Roundtable. Over 30 developers and real estate professionals met with the Mayor and staff to discuss the
housing market, housing barriers, and improvements for developments in the City.
The City facilitated grand opening events for California Fish Grill, Crumbl Cookies, Chubby Cattle, Batteries Plus,
Prince Dumpling, and SC Adult Day Health Care.
The Building and Safety Division issued building permits for the Cassia Project and Myriad. The Cassia Project
consists of 37 residential units with eight smalls lots, four of which are affordable units. Myriad is the City's first
food hall consisting of 27 leasable areas, indoor and outdoor dining areas, and a rooftop deck.
To improve the City's development process and to be more efficient, standardized, mobile, and transparent, the
City sought an online permit and land use management system to streamline the building permit process for both
the development community and for the City. The Request for Proposal (RFP) for professional consulting
services for the permit and land use management system was released during the first quarter of the year.
The Housing Division actively promoted the Community Development Block Grant (CDBG) Commercial
Improvement Program and assisted several business owners with new signage, awnings, security systems, and
outdoor dining furniture.
The City expended approximately $1.3 million and nearly doubled HUD's Timeliness expenditure requirements.
The Public Works Department completed five major projects during FY 23-24 including the Sidewalk ADA
Masterplan, Citywide Arterial & Collector Streets Improvements, Resurfacing of the Garvey Park Tennis Courts,
and New Avenue Rehabilitation projects. The projects were funded using a variety of sources.
The City of Rosemead generated $3.3 million in interest earnings largely due to favorable returns on its
investments in fixed-income securities. This is reflective of the broader economic trend of higher interest rates,
which have increased the yield on such investments. The City actively manages its portfolio to capitalize on these
opportunities, which has significantly contributed to this financial outcome.
Future Initiatives
It is anticipated that some of the Planning projects will submit for entitlements, be entitled, or begin construction.
Pasadena City College's satellite campus and The Lewis Group's multi -residential project will submit their
entitlement applications. Myriad food hall and Garvey Del Mar Plaza mixed-use project will begin construction.
The City will continue to work on the updates to the Zoning Code and General Plan Land Use Element. This will
assist the City in surpassing the 2029 requirements of RHNA and establish Rosemead well into the future to meet
residential market demands that spur economic growth and development.
The City will continue streamlining the building permit process for both the development community and for the
City by digitizing all building records and retaining and implementing a permit and land use management system.
The Housing Division will actively promote the Community Development Block Grant (CDBG) and HOME
Investment Partnerships (HOME) programs. In addition, the City will prepare the its 5 -Year Consolidated Plan for
2025-2030.
14
In addition, the Rosemead Business Community will expand even further with the grand opening of Bake and
Che, Da Vien Coffee, Good Alley, and Hot Stone Pho.
Awards and Acknowledgements
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, 2023. This was the 6th 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, 2024.
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,
�L
Bryan Chua
Finance Director/City Treasurer
15
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E
SmelmOS
CITY COUNCIL
Steven Ly
Mayor
Sandra Armenta
Council Member
Margaret Clark
Mayor Pro Tem
Sean Dang
Council Member
EXECUTIVE STAFF
CityManager............................................................................ Ben Kim
Polly Low
Council Member
City Clerk..
Ericka Hernandez
City Attorney.__.
Rachel H. Richman
Assistant City Manager
Richard Rojas
Chief of Police (LA County Sheriffs Dept) ._. _____.
Kevin Tiwari
Director of Community Development (Interim) ___ _ _
__. _ __ Lily Valenzuela
Director of Finance. .
Bryan Chua
Director of Parks B Recreation _ _
Thomas Boecking
Director of Public Works
..... _ Noya Wang
16
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IuJav'. tinia0 linen Anu�ri� a
Organizational Chart
17
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IuJ,ivl All lute.. Anuvita
Government Finance Officers Association Award
Government 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, 2023
Executive Director%CEO
18
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, 2023. 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 annual comprehensive 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.
19
Today's Small Town America
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20
LSL:* �?
INDEPENDENT AUDITORS' REPORT
To the Honorable Mayor and Members of the City Council
City of Rosemead
Rosemead, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the City of Rosemead (the "City"), as of and for the year
ended June 30, 2024, 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 financial position of the
City as of June 30, 2024, and the changes in financial position and its cash flows for the year then ended in accordance
with accounting principles generally accepted in the United States of America.
Basis for Opinion
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.
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.
Auditors' 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.
21 . PrimeGlobal
LSU*:::
To the Honorable Mayor and Members of the City Council
City of Rosemead
Rosemead, California
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 management's discussion and
analysis, the budgetary comparison schedules for the General Fund and major special revenue funds, and the required
pension and other post -employment 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.
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 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 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.
22
00
LSU*:::
To the Honorable Mayor and Members of the City Council
City of Rosemead
Rosemead, California
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 Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 9, 2024, 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
f
internal control over innanccial reporting and compliance.
�Mrer, '101ee � sSu�I4a,
Irvine, California �/
December 9, 2024
23
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24
MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED)
Financial Highlights for Year Ended June 30, 2024
25
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26
CITY OF ROSEMEAD
Management's Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2024
Introduction
This Management's Discussion and Analysis provides an overview of the City of Rosemead financial activities for the
fiscal year ended June 30, 2024. Readers are encouraged to consider this discussion and analysis in conjunction with
the letter of transmittal, which can be found on page 11 and with the Basic Financial Statements, which begin on page
41. 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.
The information in this section is not covered by the Independent Auditors' Report. All dollar amounts are expressed in
thousands unless otherwise stated.
Executive Summary - Financial Highlights
As of June 30, 2024, the City's net position (total assets and deferred outflows of resources less total liabilities
and less deferred inflows of resources) is $124.6 million, an increase of $10.1 million over the prior fiscal year.
As of June 30, 2024, total revenue was $50.2 million and total expenses for all functions and programs were
$40.1 million. The City's net position increased by $10.1 million during the year.
The City's total governmental funds reported combined ending fund balances of $65.2 million, an increase of
$4.9 million over the prior year. Of this $65.2 million, $0.4 million was non -spendable, $31.1 million was
restricted, $12.6 million was committed, $0.1 million was assigned, and $21.0 million was unassigned.
• With $31.3 million in general fund revenues (excluding transfers) and $28.0 million in general fund
expenditures (excluding transfers), a pre -transfer general fund surplus of $3.3 million was generated.
• The General Fund's fund balance at the close of the fiscal year was $34.5 million, an increase of $2.0 million
over the prior year. Of this $34.5 million, $21.3 million, representing 76% of expenditures, was unassigned and
$12.6 million was committed to meet the City's fund balance policy requirement of 40% of expenditure.
Overview of 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 Financial Report (ACFR) for the
City of Rosemead. The Financial Section of the Annual Comprehensive Financial Report includes the following
sections:
1. Independent Auditor's Report to the the Honorable Mayor and Members of the City Council
2. This introductory commentary, Management's Discussion and Analysis (MD&A)
3. Basic Financial Statements, including:
a. Government -Wide Financial Statements
b. Fund Financial Statements
c. Notes to the Financial Statements
4. Other Supplementary Information
a. Non -major governmental funds
b. Internal service funds
c. Fiduciaryfunds
5. Statistical Section
27
CITY OF ROSEMEAD
Management's Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2024
Overview of Financial Statements (Continued)
The Financial Statements
The Basic Financial Statements are comprised of the Govemment-wide Financial Statements and the Fund Financial
Statements. These two sets of financial statements provide two different perspectives of the City's financial activities
and financial position. The accompanying Notes to the Basic Financial Statements are an integral part of these
financial statements.
The Government -wide Financial Statements provide a long-term view of the City's activities as a whole. The
Statement of Net Position provides information about financial position, including capital assets and long-term liabilities
on the full accrual basis, similar to that used by commercial enterprises. The Statement of Activities provides
information about the City's revenues and expenses, also on the full accrual basis, with the emphasis on measuring
the net revenues or expenses of City programs. Information is presented both in total and separately for governmental
activities, which are generally tax and grant supported and business -type activities which are typically supported by
user fees.
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.
The Statement of Activities presents information showing how the City's net position 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 for these 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 43-47 of this report.
The Fund Financial Statements report the City's operations in more detail than the government -wide statements. A
fund 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, like other state and local governments, uses fund accounting to ensure and
demonstrate finance -related legal compliance. All of the funds of the City can be divided into three categories:
governmental funds, proprietary funds and fiduciary funds:
Governmental funds account for most of the City's basic services and focus primarily on short-term activities
by measuring current revenues and expenditures and excluding capital assets and long-term obligations.
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. The City maintains several individual governmental funds organized according to their
type (special revenue and capital projects). Information is presented separately in the governmental funds
balance sheet and in the governmental funds statement of revenues, expenditures, and changes in fund
28
CITY OF ROSEMEAD
Management's Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2024
Overview of Financial Statements (Continued)
balances for the General Fund, Grants Fund and American Rescue Plan Act Fund, which are major funds.
Data from the remaining non -major governmental funds are combined into a single, aggregated presentation.
Individual fund data for each of these non -major governmental funds is provided in the form of combining
statements beginning on page 137.
Because the focus of governmental funds is narrower than that of the government -wide financial statements, it
is useful to compare the information 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.
Because the focus of governmental funds is narrower than that of the government -wide financial statements, it
is useful to compare the information 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.
• Proprietary funds are generally used to account for services for which the City charges customers — either
outside customers, or internal departments or programs of the City. Proprietary funds provide the same type of
information as shown in the government -wide financial statements, only in more detail. The City maintains the
following type of proprietary funds:
Internal service funds are used to report activities that provide supplies and services for certain City
programs and activities. The City uses internal service funds internally to account for risk
management, fleet services, information technology equipment maintenance and replacement, capital
equipment maintenance and replacement, post -employment benefits for current and past employees,
on a cost -reimbursement basis. Because these services predominately benefit governmental rather
than business -type functions, they have been included within governmental activities in the
government -wide financial statements. The internal service funds are combined into a single,
aggregated presentation in the proprietary funds financial statement. Individual fund data for the
internal service funds is provided in the form of combining statements beginning on page 137.
Fiduciary funds are used to report assets held in a trust or agency capacity for others. The City currently has
private -purpose trust fund to account for assets held for the dissolution of the former redevelopment agency,
because this fund is fiduciary in nature, this fund cannot be used to support the City's programs and therefore
is not reflected in the government -wide financial statements.
The Notes to the Financial Statements 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 137-179 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 113-135 of this report.
Financial Analysis of the City as a Whole
Net Position. As noted earlier, net position may serve over time as a useful indicator of a government's financial
position. At June 30, 2024, the City's net position totaled $124.6 million. Total net position increased by $10.1 million
29
CITY OF ROSEMEAD
Management's Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2024
Financial Analysis of the City as a Whole (Continued)
or 8.8% when compared to the prior year.
The chart below reflects the City's net position for the fiscal year ended June 30, 2024, with comparative data for the
fiscal year ended June 30, 2023.
Financial Position Summary
Table 1. Condensed Statements of Net Position
A summarized comparison of the City's assets, deferred outflows of resources, liabilities, deferred inflows of resources,
and net position as of June 30, 2024 :
Governmental Activities
2024 2023
Assets
Cash and investments
$ 81,397,462
$ 75,493,646
Receivables and other assets
9,755,254
10,629,712
Capital assets
53,915,037
50,254,214
Total assets
145,067,753
136,377,572
Deferred outflows of resources:
Deferred outflows
4,782,723
5,381,330
Total deferred outflows of resources
4,782,723
5,381,330
Liabilities:
Current and other liabilities
12,044,306
11,960,666
Long-term liabilities
11,965,041
14,043,730
Total liabilities
24,009,347
26,004,396
Deferred inflows of resources:
Deferred inflows
1,239,447
1,280,293
Total deferred inflows of resources
1,239,447
1,280,293
Net position:
Net investment in capital assets
53,652,795
49,863,061
Restricted
31,657,170
29,695,512
Unrestricted
39,291,717
34,915,640
Total net position
$ 124,601,682
$ 114,474,213
The City's net position of $124.6 million is made up of three components: Net Investment in Capital Assets, Restricted
Net Position, and Unrestricted Net Position. The largest portion, $53.7 million or 43.1%, 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 $31.7 million or 25.4% 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 $39.3 million, or 31.5%, may be used to meet the City's ongoing
obligations. This is the only "discretionary" portion of the City's total net position amount. See Chart # below for more
information.
KE
CITY OF ROSEMEAD
Management's Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2024
Financial Analysis of the City as a Whole (Continued)
Figure A. Net Position by Component
Net investment in capital
assets, 43%
Activities and Changes in Net Position
.—Unrestricted , 32
Restricted, 25%
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, 2024 and 2023.
31
CITY OF ROSEMEAD
Management's Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2024
Financial Analysis of the City as a Whole (Continued)
Table 2. Condensed Statement of Activities
A summarized comparison of the City's Revenues, Expenses, and Changes in Net Position as of June 30, 2024 :
Revenues:
Program revenues:
Charges for services
Operating grants and contributions
Capital grants and contributions
General revenues:
Property taxes
Transient occupancy taxes
Sales taxes
Franchise taxes
Other taxes
Other
Total revenues
Expenses:
Governmental activities:
General government
Public safety
Community development
Parks and recreation
Public works
Interest on long-term debt
Total expenses
Changes in net position
Net position - beginning
Net position - ending
Governmental Activities
2024 2023
8,909,826 $ 10,402,919
11,915,536 15,398,364
2,133,127 1,996,455
12,233,339
11,750,041
2,238,353
2,312,408
6,999,889
7,369,300
1,835,039
1,689,248
118,580
113,656
3,809,430
2,376,909
50,193,119
53,409,300
5,613,800
4,916,281
12,935,463
10,824,136
5,000,935
3,679,872
4,314,376
3,444,775
12,197,341
10,471,184
3,735 32,275
40,065,650 33,368,523
10,127,469 20,040,777
114,474,213 94,433,436
$ 124,601,682 $ 114,474,213
The statements of revenues, expenses, and changes in net position indicate how the City's net position changed
during the fiscal year. The current year changes are noted below.
• Total operatina revenues: The total revenues experienced a year -over -year decrease of $3.2 million. The
primary contributing factors to this are the rise in property tax revenue by $0.5 million, a decrease in sales tax
receipts by $0.4 million, a decrease in transient occupancy taxes by $0.1 million, decreased charges for
services by $1.5 million, an increase in use of money and property by $1.7 million, and decreased grant and
contribution funding of $3.3 million.
Total operating expenses: Total expenses were $6.7 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.
32
CITY OF ROSEMEAD
Management's Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2024
Financial Analysis of the City as a Whole (Continued)
Governmental Activities
Governmental activities. The City's program revenues totaled $23.0 million with a cost of all governmental
activities for the current year being $40.1 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.
Figure B. Expenditures & Program Revenues -Governmental Activities
$14,000
$12,000
$10,000
$8,000
a $6,000
$4,000
$2,000
$0
M Expenses Program Revenues
Gen Govt Police Fire Streets Building Comm Parks & Other
Dev Rec
The total revenues experienced a year -over -year decrease of $3.2 million. The primary contributing factors to this are
decreases in operating grant revenues by $3.5 million and charges for services by $1.5 million offset by increases in
property taxes by $0.5 million and other revenues by $1.4 million.
Total expenses were $6.7 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.
33
CITY OF ROSEMEAD
Management's Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2024
Financial Analysis of the City as a Whole (Continued)
Figure C. Revenue by Source -Governmental Activities
Other, 7.6%
Other taxes, 0.2%
Franchise taxes, 3.7% -QA,
Sales taxes, 13.9%
Transient occupancy taxes, 4.5% J ''
Property taxes, 24.4%
Figure D. Expenses by Source - Governmental Activities
General government, 14.0%
Charges for services, 17.8%
Operating grants and
contributions, 23.7%
grants and contributions, 4.2%
Public safety, 32.3%
Public works, 30.4%
R!
Community development, 12.5%
Parks and recreation, 10.8%
CITY OF ROSEMEAD
Management's Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2024
Financial Analysis of the City as a Whole (Continued)
Figure E. Sources of Government -Type Revenue -Two Year Comparison
$20M
o $15M
2
$10M
M 2024 2023
$OM
Charges Operating Capital Property Transient Sales Franchise Other Other
for grants and grants and taxes occupancy taxes taxes taxes
services contributionvntributions taxes
Figure F. Sources of Government -Type Expenses -Two Year Comparison
$14M
$12M
$10M
0
$8M
c
$6M
c
d
$4M
$2M
$0M
M 2024 M 2023
General Public safety Community Parks and Public works Interest on
government development recreation long-term debt
Bbl
CITY OF ROSEMEAD
Management's Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2024
Financial Analysis of Funds
In addition to the statements described above, the City also maintains financial records at the funds level for budgetary
control. Individual funds are generally established to track the resources and operating results for the general fund and
specific restricted programs.
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.
Governmental Funds
General Fund
The fund balance of the City's General Fund increased by $2.0 million during the current year. Highlights of the change
in fund balance are presented below:
Total General Fund revenues of $31.3 million exceeded expenditures of $28.0 million.
The fiscal year's fund revenues decreased by $0.2 million from prior fiscal year. There were increases in
property taxes by $0.5 million, decreased sales taxes by $0.4 million, decreased transient occupancy taxes by
$0.1 million, decreased franchise tax fees by $0.1 million, and decreased parks and recreation by $0.1 million.
Building permit and plan checking collections decreased by $0.7 million due to an overall decrease in building
activity. Interest income increased by $0.8 million due to higher yields on investments due to a combination of
the Fed Reserve's Monetary Policy, market risk and investor sentiment.
Due to increases in Community Development, Parks and Recreation, Public Works, Public Safety, and Capital
Outlay as well as decreases in General Government, General fund expenditures were $1.5 million higher than
the previous fiscal year. The majority of the cost increase was attributable to salary and benefits $1.2 million,
Sheriff contract $1.4 million, and capital outlay and CIP project decrease of $1.0 million.
General Fund Budget Analysis. The budget, as adopted for 2023-24 contained $30.1 million in estimated
revenue and $29.7 million in appropriations. This projected a $0.5 million surplus for the fiscal final financial
results indicate that there was a revenue of $31.3 million, which exceeded the expenditures of $28.0 million.
As a result, there was a positive addition of $3.3 million to the fund balance of the General Fund prior to
interfund transfers.
Table 3. Budget Cycle Summary
2023-24
2023-24
2023-24
Variance with
% Actuals to
Adopted Budget
Final
Actual
Final Budget
Amended Budget
Total revenue $ 28,837,200 $
30,120,000 $
31,316,757
$ 1,196,757
4.0%
Total expenditures 29,628,900
29,662,715
28,031,287
1,631,428
5.5%
Net $ (791,700) $
457,285 $
3,285,470
$ 2,828,185
The City's General Fund collected revenues of $1.2 million more, equal to 4.0% 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 $0.3 more revenue than budgeted.
Property tax revenue was $186 thousand more than budgeted due to a growth in the assessed valuation of properties.
Sales tax revenue was $211 thousand more than projected due to new business establishments and increased
consumer sentiment. Charges for services were $85 thousand more than budgeted primarily due to reopening of
parks and recreation programs. The use of money and property was $0.5 million more than budget due to an increase
36
CITY OF ROSEMEAD
Management's Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2024
Financial Analysis of Funds (Continued)
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 $0.2 million over the estimate due to strong
building permit revenues.
The General Fund expenditure budget had a positive variance of $1.6 million due to savings in all governmental
activities. General government departments completed the year $0.4 million below budget due to savings in
contingency expenses, personnel due to vacancies, and contract services. Public Safety was $0.3 million below
budget due to savings in law enforcement contract services, and reduction in animal control services. Public Works
was $0.2 million below budget due to reduced facility maintenance, contract management services and capital
equipment. Parks and recreation were $0.2 million 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 $5.3 million ARPA funds, which were partially expended in Fiscal Year 2024 and partially reflected in the
Fiscal Year 2025 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 $30.8 million, an
increase of $1.6 million. These are the traditional MTA Local Return Funds, State Gas Tax, Street Lighting, CDBG and
Home Funds, AQMD, and SB1 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.
Capital Assets
The City of Rosemead's investment in capital assets for its governmental activities as of June 30, 2024, amounts to
$53.9 million (net of accumulated depreciation and amortization). 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 7, found on pages 93 of the
Basic Financial Statements.
37
CITY OF ROSEMEAD
Management's Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2024
Capital Assets (Continued)
Table 4. Summary of Activities - Capital Assets
Governmental Activities
2024 2023
Capital assets not subject to depreciation/
amortization:
Land $
6,560,869 $
4,859,188
Construction in progress
2,343,852
1,577,712
Depreciable capital assets:
Buildings
12,838,911
13,348,093
Improvements other than buildings
3,050,971
2,870,771
Machinery and equipment
472,303
97,988
Autos and trucks
127,394
195,735
Furniture and office equipment
5,160
7,975
Subscription assets
6,224
32,648
Lease assets
185,647
337,009
Infrastructure
28,323,706
26,926,895
Total capital assets, net $
53,915,037 $
50,254,214
Debt Administration
At the end of the current fiscal year, the Successor Agency for the Rosemead Community Commission had total
bonded debt outstanding of $16.5 million, a decrease of $2.4 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 15 on pages 110-111 of the Basic Financial Statements. The table below shows the
changes in governmental long-term liabilities other than pensions and other post -employment benefits. The liabilities
reduced by $33,059 due to payments on the subscriptions and lease liabilities.
Table 5. Long -Term Debt
Leases payable
Subscriptions payable
Compensated absences payable
Total long-term liabilities
Governmental Activities
2024 2023
245,037 $ 379,580
6,701 11,573
743,427 637,071
$ 995,165 $ 1,028,224
Additional information on Long Term Liabilities can be found on Note 6, Note 8, and Note 9.
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, 2024, management demonstrated attentiveness to budget requests during the preparation of the budget for
Fiscal Year 2024-25. Furthermore, early financial planning and implementation continue to be crucial for maintaining a
healthy fund balance. The budget for Fiscal Year 2024-25 incorporated strategic financial planning through continued
contributions to Internal Service Funds, which serves to provide support for the long-term maintenance, improvements,
CITY OF ROSEMEAD
Management's Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2024
Economic Factors and Next Year's Budget (Continued)
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. 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.
Contacting Financial Management
This financial report is designed to provide our citizens, customers, investors, and creditors with a general overview of
the City's finances and to demonstrate the City's accountability for the money it receives. If you have questions about
this report or need additional financial information, contact the Finance department, at the City of Rosemead, Finance
Director 8838 East Valley Boulevard, Rosemead, California 91770.
loddN's Small Town Anterita
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40
BASIC FINANCIAL STATEMENTS
41
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42
Government -Wide Financial Statements
43
CITY OF ROSEMEAD
Statement of Net Position
June 30, 2024
ASSETS
Cash and investments
Receivables (net of uncollectibles):
Accounts
Accrued interest
Due from other governments
Notes and loans
Leases
Net pension asset
Prepaid costs
Capital assets (not being depreciated)
Capital assets (net of accumulated depreciation/amortization)
Total assets
DEFERRED OUTFLOWS OF RESOURCES
Pension -related
OPEB-related
Total deferred outflows of resources
LIABILITIES
Accounts payable
Pass-through payables
Due to other governments
Accrued liabilities
Deposits payable
Unearned revenues
Noncurrent liabilities:
Due within one year:
Leases, subscriptions and compensated absences payable
Due in more than one year:
Leases, subscriptions and and compensated absences payable
Net Pension Liability
Net OPEB Liability
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Pension -related
OPEB-related
Lease -related
Total deferred inflows of resources
See accompanying Notes to the Basic Financial Statements 44
Governmental
Activities
$ 81,397,462
1,033,199
755,454
3,395,619
3,788,957
142,072
539,924
100,029
8,904,721
45,010,316
145,067,753
4,272,942
509,781
4,782,723
3,227,349
10,504
46,230
353,514
606,542
7,279,756
520,411
474,754
10,869,642
620,645
24,009,347
672,661
424,714
142,072
1,239,447
NET POSITION
Net investment in capital assets
Restricted:
Community services
Low- and moderate -income housing
Public works
Capital projects
Pension benefits
Unrestricted
Total net position
See accompanying Notes to the Basic Financial Statements 45
CITY OF ROSEMEAD
Statement of Net Position (Continued)
June 30, 2024
53,652,795
4,179,961
435,483
18,082,489
8,419,313
539,924
39,291,717
$ 124,601,682
lodaN' Small Town Amerii a
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46
CITY OF ROSEMEAD
Statement of Activities
For the Year Ended June 30, 2024
Net(Expenses)
Revenues and
Changes in Net
Program Revenues Position
General revenues:
Property taxes
Operating
Capital
2,238,353
Sales taxes
6,999,889
Charges for
Contributions
Contributions
Governmental
Use of money and property
Expenses
Services
and Grants
and Grants
Activities
Functions/Proarams:
Governmental activities:
10,127,469
General government
$ 5,613,800 $
350,078
$ 4,014,458
$ 7,254
$ (1,242,010)
Public safety
12,935,463
748,860
213,786
1,250,922
(10,721,895)
Community development
5,000,935
3,336,464
3,584,120
—
1,919,649
Parks and recreation
4,314,376
982,308
—
—
(3,332,068)
Public works
12,197,341
3,492,116
4,103,172
874,951
(3,727,102)
Interest on long-term debt
3,735
—
—
—
(3,735)
Total governmental activities
$ 40,065,650 $
8,909,826
$ 11,915,536
$ 2,133,127
(17,107,161)
General revenues:
Property taxes
12,233,339
Transient occupancy taxes
2,238,353
Sales taxes
6,999,889
Franchise taxes
1,835,039
Othertaxes
118,580
Use of money and property
3,793,154
Miscellaneous income
16,276
Total general revenues
27,234,630
Change in net position
10,127,469
Net position -beginning 114,474,213
Net position -ending $ 124,601,682
See accompanying Notes to the Basic Financial Statements 47
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48
Fund Financial Statements
49
lodav'+ Small Town Ameri(a
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50
Government Fund Financial Statements
51
CITY OF ROSEMEAD
Balance Sheet - Governmental Funds
June 30, 2024
ASSETS
Cash and investments
Receivables (net of allowance for uncollectible):
Accounts
Accrued interest
Due from other governments
Notes and loans
Leases
Prepaid costs
Due from other funds
Total assets
LIABILITIES
Accounts payable
Retentions payable
Accrued liabilities
Deposits payable
Due to other governments
Due to other funds
Unearned revenues
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Lease -related
Total deferred inflows of resources
FUND BALANCES (DEFICITS)
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
See accompanying Notes to the Basic Financial Statements 52
Special Revenue Funds
City Grants American
General Fund Fund Rescue Plan
$ 33,954,402 $ 1,449,433 $ 5,316,193
1,025,199 — —
407,708 — —
1,601,213 83,572 —
264,122 — —
142,072 — —
75,879 — —
496,745 — —
$ 37,967,340 $ 1,533,005 $ 5,316,193
$ 2,068,753 $ 37,765 $ —
322,609 — 10,533
561,448 — —
46,230 — —
— 1,493,682 5,305,660
2,999,040 1,531,447 5,316,193
360,325 83,572 —
142,072 — —
502,397 83,572
340,001 — —
12,647,428 — —
132,948 — —
21,345,526 (82,014) —
34,465,903 (82,014) —
$ 37,967,340 $ 1,533,005 $ 5,316,193
ASSETS
Cash and investments
Receivables (net of allowance for uncollectible):
Accounts
Accrued interest
Due from other governments
Notes and loans
Leases
Prepaid costs
Due from other funds
Total assets
LIABILITIES
Accounts payable
Retentions payable
Accrued liabilities
Deposits payable
Due to other governments
Due to other funds
Unearned revenues
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Lease -related
Total deferred inflows of resources
FUND BALANCES (DEFICITS)
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
See accompanying Notes to the Basic Financial Statements 53
CITY OF ROSEMEAD
Balance Sheet - Governmental Funds (Continued)
June 30, 2024
Total Total
Nonmajor Governmental
Funds Funds
$ 28,140,103 $ 68,860,131
8,000
1,033,199
259,983
667,691
1,710,834
3,395,619
3,524,835
3,788,957
—
142,072
24,150
100,029
—
496,745
$ 33,667,905 $ 78,484,443
$ 1,113,669 $ 3,220,187
10,504
10,504
20,372
353,514
45,094
606,542
—
46,230
496,745
496,745
480,414
7,279,756
2,166,798
12,013,478
656,264 1,100,161
— 142,072
656,264 1,242,233
24,150
364,151
31,117,246
31,117,246
—
12,647,428
—
132,948
(296,553)
20,966,959
30,844,843
65,228,732
$ 33,667,905 $ 78,484,443
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m
CITY OF ROSEMEAD
Reconciliation of the Governmental Funds Balance Sheet of Governmental Funds to the Statement of Net
Position
June 30, 2024
Amounts reported for governmental activities in the Statement of Net Position are
Internal service funds provide services to other funds on a cost -reimbursement
different because:
basis. The assets, deferred outflows of resources, liabilities, and deferred inflows of
Total fund balances - governmental funds
$ 65,228,732
Capital assets, net of accumulated depreciation/amortization, used in governmental
Statement of Activities.
activities are not financial resources and, therefore, are not reported in the funds.
53,860,293
Differences between expected and actual experiences, assumption changes and
therefore, are not reported in the funds.
net differences between projected and actual earnings, and contributions
Leases and subscriptions payable
subsequent to the measurement date for the postretirement benefits (pension and
Compensated absences
OPER) are recognized as deferred outflows of resources and deferred inflows of
Net pension liability
resources on the Statement of Net Position.
Net OPEB liability
Deferred outflows -pension related $
4,272,942
Deferred outflows-OPEB related
509,781
Deferred inflows -pension related
(672,661)
Deferred inflows-OPEB related
(424,714)
Total deferred outflows and inflows related to postemployment benefits 3,685,348
Other long-term assets that are not available to pay for current period expenditures
and, therefore, are either labeled unavailable or not reported in the funds.
Long-term receivables 645,151
Net pension asset 539,924
Miscellaneous revenues 455,010
Total other long-term assets
1,640,085
Internal service funds provide services to other funds on a cost -reimbursement
basis. The assets, deferred outflows of resources, liabilities, and deferred inflows of
resources of the internal service funds are included in governmental activities in the
Statement of Activities.
12,672,676
Long-term liabilities that are not due and payable in the current period, and
therefore, are not reported in the funds.
Leases and subscriptions payable
(251,738)
Compensated absences
(743,427)
Net pension liability
(10,869,642)
Net OPEB liability
(620,645)
Total long-term liabilities
(12,485,452)
Net position of governmental activities $ 124,601,682
See accompanying Notes to the Basic Financial Statements 55
CITY OF ROSEMEAD
Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds
For the Year Ended June 30, 2024
REVENUES
Taxes
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Developer contributions
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 (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances -beginning
Fund balances (deficit) -ending
See accompanying Notes to the Basic Financial Statements 56
Special Revenue Funds
City Grants American
General Fund Fund Rescue Plan
$ 23,218,804 $ — $ _
3,594,146 — —
584,614 1,455,791 2,061, 073
1,224,644 — —
2,057,296 — —
604,725 — —
32,528 — —
31, 316, 757 1,455,791 2,061,073
5,114,210
— 186,784
12,549,622
22,500 —
2,103,355
— 76,833
3,954,160
— —
4,068,509
77,454 95,774
154,685
25,832 1,701,682
83,011 — —
3,735 — —
28,031,287 125,786 2,061,073
3,285,470 1,330,005 —
1,800,000 — —
(3,050,000) — —
(1,250,000) — —
2,035,470 1,330,005 —
32,430,433 (1,412,019) —
$ 34,465,903 _L___C82,0141 $ —
CITY OF ROSEMEAD
Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds (Continued)
For the Year Ended June 30, 2024
REVENUES
Taxes
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Developer contributions
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 (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances -beginning
Fund balances (deficit) -ending
See accompanying Notes to the Basic Financial Statements 57
Total
Total
Nonmajor
Governmental
Funds
Funds
$ 206,396
$ 23,425,200
—
3,594,146
13, 781, 897
17, 883, 375
520,547
1,745,191
1,098,457
3,155,753
—
604,725
319,277
319,277
5,022
37,550
15,931,596
50,765,217
21,102
5,322,096
151,114
12,723,236
2,503,059
4,683,247
27,060
3,981,220
5,169,278
9,411,015
4,628,796
6,510,995
56,404 139,415
— 3,735
12,556,813 42,774,959
3,374,783 7,990,258
1,800, 000
(1,800,000) (4,850,000)
(1,800,000) (3,050,000)
1,574,783 4,940,258
29,270,060 60,288,474
$ 30,844,843 $ 65,228,732
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58
CITY OF ROSEMEAD
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, 2024
Amounts reported for governmental activities in the Statement of Activities are different
because:
Net change in fund balances - total governmental funds: $ 4,940,258
Governmental funds report capital outlays are expenditures. However, in the
Statement of Activities, the cost of these assets is allocated over their estimated useful
lives and reported as depreciation/amortization expense. This is the amount by which
capital outlays exceeded depreciation/amortization expense in the current period.
Capital outlay $ 6,509,264
Depreciation/amortization expense (2,841 779)
Total adjustment 3,667,485
Revenues in the Statement of Activities that do not provide current financial resources
are not reported as revenues in the funds.
Earned but unavailable grant revenues
(1,188,225)
Earned but unavailable other revenues
169,705
Total adjustment
(1,018,520)
Bond 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 similar items
when debt is first issued, whereas these amounts are deferred and amortized in the
Statement of Activities.
Principal payments
139,415
Total adjustment
139,415
Internal service funds provide services to other funds on a cost -reimbursement basis.
The net revenue of certain activities of internal service funds is reported with
governmental activities.
3,450,963
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
(106,356)
Changes in pension liabilities and related deferred outflows and inflows of resources
(938,564)
Changes in OPER liabilities and related deferred outflows and inflows of resources
(7,212)
Total adjustment
(1,052,132)
Change in net position of governmental activities
$ 10,127,469
See accompanying Notes to the Basic Financial Statements 59
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See accompanying Notes to the Basic Financial Statements 60
Proprietary Fund Financial Statements
61
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I
CITY OF ROSEMEAD
Statement of Net Position
Proprietary Funds
June 30, 2024
ASSETS
Current assets:
Cash and investments
Receivables (net of uncollectibles):
Accrued interest
Total current assets
Noncurrent:
Capital assets, net
Total noncurrent assets
Total assets
LIABILITIES
Current liabilities:
Accounts payable
Total current liabilities
Total liabilities
NET POSITION
Invested in capital assets
Unrestricted
Total net position
See accompanying Notes to the Basic Financial Statements 63
Governmental
Activities
Internal
Service Funds
$ 12,537,331
87,763
12,625,094
54,744
54,744
12,679,838
7,162
7,162
7,162
54,744
12,617,932
$ 12,672,676
lodan�'% Small Town Amrrii,i
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0
CITY OF ROSEMEAD
Statement of Revenues, Expenses and Changes in Net Position
Proprietary Funds
For the Year Ended June 30, 2024
OPERATING EXPENSES
Contractual services
Depreciation
Total operating expenses
Operating income (loss)
NONOPERATING REVENUES (EXPENSES)
Gains (losses) on sale of capital asset
Use of money and property
Total nonoperating revenues (expenses)
Income (loss) before transfers
Transfers in
Change in net position
Net position -beginning
Net position -ending
See accompanying Notes to the Basic Financial Statements 65
Governmental
Activities
Internal
Service Funds
$ 36,761
9,224
45,985
(45,985)
526
446,422
446,948
400,963
3,050,000
3,450,963
9,221,713
$ 12,672,676
Ioday's Small Town America
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M
CITY OF ROSEMEAD
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2024
Governmental
Activities
See accompanying Notes to the Basic Financial Statements 67
Internal
Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Payments to suppliers and service providers
$ (28,809)
Net cash provided by (used for)
operating activities
(28,609)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers to other funds
3,050,000
Net cash provided by (used for)
noncapital financing activities
3,050,000
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition and construction of capital assets
(2,562)
Proceeds from sales of assets
526
Net cash provided by (used for)
capital and related financing activities
(2,036)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments
363,635
Net cash provided by (used for)
investing activities
363,635
Net increase (decrease) in
cash and cash equivalents
3,382,990
Cash and cash equivalents -beginning
9,154,341
Cash and cash equivalents -ending
$ 12,537,331
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED BY (USED FOR)
OPERATING ACTIVITIES
Operating income (loss)
$ (45,985)
Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities:
Depreciation/amortization expense
9,224
Increase (decrease) in accounts payable
8,152
Total adjustments
17,376
Net cash provided by (used for)
operating activities
$ (28,609)
See accompanying Notes to the Basic Financial Statements 67
lod,iN's Small Town Anmri<a
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MA
Fiduciary Fund Financial Statements
5i:'
Ind,iv'N Snwll Town America
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70
CITY OF ROSEMEAD
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2024
ASSETS
Cash and investments
Receivables:
Accrued interest
Notes and loans
Prepaid costs
Total assets
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding
Total deferred outflows of resources
LIABILITIES
Accrued interest
Due to other governments
Bonds payable - due within one year
Bonds payable - due in more than one year
Total liabilities
NET POSITION (DEFICIT)
Unrestricted
Total net position (deficit)
See accompanying Notes to the Basic Financial Statements 71
Private Purpose
Trust Fund
$ 4,759,268
31,484
201,314
96,908
5,088,974
111,611
111,611
178,840
376,673
1,245,000
15,256,148
17,056,661
(11,856,076)
1_11L856,0761
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VA
CITY OF ROSEMEAD
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2024
ADDITIONS
Property taxes
Use of money and property
Total additions
DEDUCTIONS
Administrative
Interest and fiscal charges
Contributions to other governments
Total deductions
Net increase (decrease) in fiduciary net position
Net position -beginning
Net position -ending
See accompanying Notes to the Basic Financial Statements 73
Private
Purpose
Trust Fund
$ 2,513,926
137,473
2,651,399
105,118
665,861
550,267
1,321,246
1,330,153
(13,186,229)
$ (11,856,076)
loday's Small Town Anuvrica
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74
Notes to The Financial Statements
75
lodaN'ti Small Town Ameri(a
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76
CITY OF ROSEMEAD
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. The Reporting Entity
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
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.
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.
77
CITY OF ROSEMEAD
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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 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 government -
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 and deferred outflows of resources, liabilities and
deferred inflows of resources, fund balance or net position as appropriate, and 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 govemment-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.
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
78
CITY OF ROSEMEAD
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(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.
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.
79
CITY OF ROSEMEAD
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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.
Formerly Major Fund: 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. This fund is
no longer presented as a major fund in fiscal year 2023-24, due to it no longer meeting the criteria
for presentation. There was no fund balance reported at the end of the prior year, and as such no
restatement of net position was necessary for the nonmajor governmental funds.
The City's Fiduciary Funds are as follows:
Private -purpose Trust Fund — Accounts for the 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 Projects 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.
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.
7
CITY OF ROSEMEAD
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
E. Cash Eauivalents
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. Capital 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
Asset Type
Years
Buildings and 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
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
81
CITY OF ROSEMEAD
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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.
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.
MoY
CITY OF ROSEMEAD
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect certain reported amounts and disclosures.
Accordingly, actual results could differ from those estimates.
K. Pension Plans
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.
CaIPERS 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
Karmen 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.
CaIPERS-Cost sharing Multiple -Employer Plan
Valuation Date June 30, 2022
Measurement Date June 30, 2023
Measurement Period July 1, 2022 to June 30, 2023
PARS -Agent, Multiple Employer Plan:
Valuation Date June 30, 2022
Measurement Date June 30. 2024
Measurement Period July 1, 2023 to June 30, 2024
L. Other Post-Emplovment 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, 2023
Measurement Date June 30, 2023
Measurement Period July 1, 2022 to June 30, 2023
83
CITY OF ROSEMEAD
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
M. Property Taxes
The County of Los Angeles is responsible for the 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 (OPEB)
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.
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.
m
CITY OF ROSEMEAD
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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 Technoloov Arrangements (SBITA
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.
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.
85
CITY OF ROSEMEAD
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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.
NOTE 2: STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
A. Deficit Fund Balances/Net Position
At June 30, 2024, the following funds report deficit fund balances or net position:
Fund Name
Fund
Local Transportation/Sidewalk Grant Fund Nonmajor Special Revenue Fund $
Community Development Block Grant Fund Nonmajor Special Revenue Fund
Measure R CP Nonmajor Capital Projects Fund
City Grants Fund Major Special Revenue Fund $
Deficit Cause
(42)
(a)
(58,312)
(a)
(238,199)
(a)
(82,014)
(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 held by the City were comprised of the following at June 30, 2024:
Cash on hand $ 3,148
Deposits with financial institutions 3,899,543
Investments 82,254,039
Total cash and investments $ 86,156,730
m
CITY OF ROSEMEAD
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 3: CASH AND INVESTMENTS (CONTINUED)
A. Investments Authorized Debt
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.
Investment Types
Authorized by State Law
Authorized by
Investment
Policy
Maximum
Maturity *
Maximum
Percentage
of Portfolio *
Maximum
Investment
in One Issuer
U.S. Treasury obligations
Yes
5 years
None
None
U.S. agency securities
Yes
5 years
None
None
Bankers acceptances
Yes
180 days
40%
5%
Commercial paper
Yes
270 days
25%
5%
Certificates of deposit (nonnegotiable)
Yes
5 years
None
None
Certificates of deposit (negotiable)
Yes
5 years
30%
None
Repurchase agreements
Yes
1 year
None
5%
Medium-term notes
Yes
5 years
30%
5%
Municipal investments
Yes
5 years
10%
5%
Money market mutual funds
Yes
N/A
20%
10%
Mortgage pass-through securities
Yes
5 years
20%
None
Local Agency Investment Fund
Yes
N/A
None
$75 million
' Based on state law requirements or City investment policy requirements, whichever is more restrictive
B. 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:
Investment Type
U.S. agency securities
Certificates of deposit (negotiable)
Medium-term notes
Money market mutual funds
Local Agency Investment Fund
Total
Remaining Maturity (in Months)
12 Months 13 to 36 37 to 60
Total or Less Months Months
$ 9,322,552 $ 1,686,507 $ 2,208,735 $ 5,427,310
11,755,498 1,708,596 739,619 9,307,283
6,676,234 785,755 3,387,800 2,502,679
60,895 60,895 — —
54,438,860 54,438,860 — —
$ 82,254,039 $ 58,680,613 $ 6,336,154 $ 17,237,272
87
CITY OF ROSEMEAD
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 3: CASH AND INVESTMENTS (CONTINUED)
C. Credit Risk
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
Minimum
Investment Type Total Legal Rating Aaa As A A -
U.S. Treasury $ 9,322,552 Exempt $ 9,322,552 $ — $ — $ — $
obligations
Cert. of deposit 11,755,498 Not Rated — — — —
(negotiable)
Medium-term 6,676,234 A 1,534,039 3,424,550 1,238,245 479,400
notes
Money market 60,895 Aaa —
mutual funds
Local Agency 54,438,860 Not Rated
Investment Fund
Total $ 82,254,039
D. Concentration of Credit Risk
Exempt or
Not Rated
11,755,498
60,895
54,438,860
$10,856,591 $ 3,424,550 $ 1,238,245 $ 479,400 $ 66,255,253
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 external investment pools)
that represent 5% or more of total As of June 30, 2024 the City did not have any investments in one issuer greater
than 5%.
E. 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 parry. 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, 2024, the City had deposits with financial institutions in excess of federal depository
insurance limits by $3,649,066 that were held in collateralized accounts. As of June 30, 2024, the Successor
Agency had deposits with financial institutions in excess of federal depository insurance limits by $4,507,989 that
were held in collateralized accounts.
[i
CITY OF ROSEMEAD
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 3: CASH AND INVESTMENTS (CONTINUED)
F. Fair Value Measurements
Generally accepted accounting principles establishes a fair value hierarchy that prioritizes the inputs to valuation
techniques used to measure fair value. 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.
NOTE 4. NOTES, LOANS, AND LEASES RECEIVABLE
A. Notes Receivables
Loans receivable consisted of the following at June 30, 2024:
Balance Balance
July 1, 2023 Additions Deletions June 30, 2024
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 Cemetery Association loan
Home Improvements
First Time Home Buyers Program
Residential Rehabilitation Loan Program
Total
1. Computer Purchase Loans
225 $
- $ 225 $
-
32,920
- 8,230
24,690
16,461
- 4,115
12,346
227,086
- -
227,086
214,615
- -
214,615
1,200
- 1,200
-
2,591,570
- -
2,591,570
585,200
- 70,000
515,200
- 203,450 203,450
$ 3,669,277 $ 203,450 $ 83,770 $ 3,788,957
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, 2024 is $0.
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, 2024 is $24,690.
3. San Gabriel Valley Water Company Phase H
The City has an outstanding loan with the San Gabriel Valley Water Company (Phase II) 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, 2024 is $12,346.
z
CITY OF ROSEMEAD
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 4. NOTES, LOANS, AND LEASES RECEIVABLE (CONTINUED)
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. 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. Rio Hondo Community Development Corporation (275-12025
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 by the 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.
6. El 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, 2024 is $0.
7. 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, 2024 is $2,591,570.
8. 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, 2024 is $515,200.
9. Residential Rehabilitation Loan Program
The City used HOME funds to provide qualifying homeowners with funds for residential rehabilitation. The loans
range from $25,000 to $170,000. The loan term is 20 years, and is forgivable after 20 years. Interest rates range
from 0% to 3%. The amount outstanding as of June 30, 2024 is $203,450.
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, 2024, the value of the lease receivable and
deferred inflow of resources is $142,072. The City recognized rental revenue of $944,494 during the fiscal year
which included $43,715 related to the amortization of the deferred inflow and $900,779 for other short term leases
not included in the measurement of the lease receivable.
7N
CITY OF ROSEMEAD
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 5. INTERFUND RECEIVABLE, PAYABLE AND TRANSFERS
A. Due To/From Other Funds
Receivable Fund Payable Fund Amount
General fund Nonmajor governmental funds $ 496,745
Due to/due from other funds for the year ending June 30, 2024, consisted of $496,745 for short-term loans made
to the nonmajor governmental funds from the General Fund resulting from deficit cash balances in those funds.
B. Interfund Transfers
Transfers in
Internal
General Service
Fund Funds Total
Transfers out
General fund $ — $ 3,050,000 $ 3,050,000
Nonmajor governmental funds 1,800,000 — 1,800,000
Total $ 1,800,000 $ 3,050,000 $ 4,850,000
The General Fund transferred $3,050,000 into the internal service funds for various operating and capital
improvement programs and projects. In addition, the nonmajor governmental funds transferred $1,800,000 to the
General Fund for the recognition of previously restricted American Rescue Plan Act monies for general
governmental usage.
NOTE 6. LEASES AND SUBSCRIPTION
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, 2024, the total value of the lease liability was
$245,037. 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, 2024
are as follows:
Vehicle lease
Governmental Activities
Amount of
Leased Capital Accumulated
Lease Type Assets Amortization
$ 756,807 $ 571,160
Lease activities and the future principal and interest lease payments as of June 30, 2024, were as follows:
Balance Balance Due Within
June 30, 2023 Additions Deletions June 30, 2024 One Year
Lease liability $ 379,580 $ — $ 134,543 $ 245,037 $ 124,146
91
CITY OF ROSEMEAD
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 6: LEASES AND SUBSCRIPTION (CONTINUED)
B. Subscriotion-Based Information Technology Arrangements
The City has entered into various subscriptions 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, 2024, the total value of the subscription liability was $6,701.
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, 2024 are as follows:
Governmental Activities
Accumulated
Subscription Type Amount of Subscription Assets Amortization
Software as a service $ 88,030 $ 81,806
Subscription activities and the future principal and interest subscription payments as of June 30, 2024, were as
follows:
Balance Balance Due Within
June 30, 2023 Additions Deletions June 30, 2024 One Year
Subscription liability $ 11,573 $ — $ 4,872 $ 6,701 $ 6,701
Governmental Activities
Fiscal Year
Ending
June 30, Principal Interest Total
2025 $ 6,701 $ 402 $ 7,103
Governmental Activities
Fiscal Year
Ending
June 30,
Principal
Interest
Total
2025
$ 124,146 $
16,481 $
140,627
2026
65,995
8,989
74,984
2027
54,896
2,697
57,593
Totals
$ 245,037 $
28,167 $
273,204
B. Subscriotion-Based Information Technology Arrangements
The City has entered into various subscriptions 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, 2024, the total value of the subscription liability was $6,701.
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, 2024 are as follows:
Governmental Activities
Accumulated
Subscription Type Amount of Subscription Assets Amortization
Software as a service $ 88,030 $ 81,806
Subscription activities and the future principal and interest subscription payments as of June 30, 2024, were as
follows:
Balance Balance Due Within
June 30, 2023 Additions Deletions June 30, 2024 One Year
Subscription liability $ 11,573 $ — $ 4,872 $ 6,701 $ 6,701
Governmental Activities
Fiscal Year
Ending
June 30, Principal Interest Total
2025 $ 6,701 $ 402 $ 7,103
CITY OF ROSEMEAD
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 7: CAPITAL ASSETS
A summary of the changes in Capital assets for the fiscal year ended June 30, 2024, were as follows:
Capital assets, being depreciated/
Balance
Balance
amortized
June 30, 2023
Additions Deletions
Transfers
June 30, 2024
Governmental activities:
25,466,127
—
— —
25,466,127
Capital assets, not being depreciated/
5,735,718
—
— 490,664
6,226,382
amortized
535,969
29,556
— 412,815
978,340
Land
$ 4,859,188
$ 1,701,681 $ —
$ —
$ 6,560,869
Construction -in -progress
1,577,712
4,780,589 —
(4,014,449)
2,343,852
Total capital assets, not being
88,030
—
— —
88,030
depreciated/amortized
6,436,900
6,482,270 —
(4,014,449)
8,904,721
Capital assets, being depreciated/
amortized
Buildings
25,466,127
—
— —
25,466,127
Improvements other than buildings
5,735,718
—
— 490,664
6,226,382
Machinery and equipment
535,969
29,556
— 412,815
978,340
Autos and trucks
1,363,405
—
— —
1,363,405
Furniture and office equipment
764,425
—
— —
764,425
Subscription assets
88,030
—
— —
88,030
Lease assets
756,807
—
— —
756,807
Infrastructure
74,351,515
—
— 3,110,970
77,462,485
Total capital assets, being depreciated/
amortized
109,061,996
29,556
— 4,014,449
113,106,001
Less accumulated depreciation/
amortization
Buildings
(12,118,034)
(509,182)
— —
(12,627,216)
Improvements other than buildings
(2,864,947)
(310,464)
— —
(3,175,411)
Machinery and equipment
(437,981)
(68,056)
— —
(506,037)
Autos and trucks
(1,167,670)
(68,341)
— —
(1,236,011)
Furniture and office equipment
(756,450)
(2,815)
— —
(759,265)
Subscription assets
(55,182)
(26,624)
— —
(81,806)
Lease assets
(419,798)
(151,362)
— —
(571,160)
Infrastructure
(47,424,620)
(1,714,159)
— —
(49,138,779)
Total accumulated depreciation/
amortization
(65,244,682)
(2,851,003)
(68,095,685)
Total capital assets, being depreciated/
amortized, net 43,817,314 (2,821,447) — 4,014,449 45,010,316
Total governmental activities capital
assets $ 50,254,214 $ 3,660,823 $ — $ — $ 53,915,037
93
CITY OF ROSEMEAD
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 7: CAPITAL ASSETS (CONTINUED)
Depreciation and amortization expense was charged to functions/programs of the primary government as follows:
General government
$ 36,798
Public safety
16,093
Public works
2,365,517
Parks and recreation
200,598
Community development
222,773
Internal service funds
9,224
Total depreciation/amortization expense $ 2,851,003
NOTE 8: COMPENSATED ABSENCES
Compensated absences activities for the year ended June 30, 2024, is as follows:
Balance
Amount
Balance Due Within
June 30, 2023 Additions Deletions June 30, 2024 One Year
$ 637,071 $ 440,188$ (333,832) $ 743,427 $ 389,564
NOTE 9: RISK MANAGEMENT
A. Description of Self -Insurance Pool Pursuant to Joint Powers Agreement
The City is a member of the California Joint Powers Insurance Authority (Authority). The Authority is composed of
126 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. 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.
1. Primary 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.
94
CITY OF ROSEMEAD
Notes to Financial Statements
For the Year Ended June 30, 2024
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 concerning
the coverage structure is available on the Authority's website: https://cjpia.org/coverage/risk-sharing-pools/.
2. Primary 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 2023-24 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 through reinsurance policies, and Employer's Liability
losses from $5 million to $10 million are pooled among members.
C. Purchased Insurance
1. Pollution Legal Liability Insurance
The City 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. Coverage is on a claims -made basis. There is a $250,000 deductible. The Authority has an aggregate
limit of $20 million.
2. Property Insurance
The City participates in the all-risk property protection program of the Authority. This insurance protection
is underwritten by several insurance companies. City property is currently insured according to a schedule
of covered property submitted by the City to the Authority. City property currently has all-risk property
insurance protection in the amount of $72,823,235. There is a $10,000 deductible per occurrence
except for non -emergency vehicle insurance which has a $2,500 deductible.
3. Crime Insurance
The City 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 2023-24.
1*1
CITY OF ROSEMEAD
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 10: DEFINED BENEFIT PENSION PLANS
A. Aggregate 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, an agent, multiple -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:
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 (CaIPERS). 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, 2022 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 CaIPERS' audited financial statements are publicly available reports that can be obtained at CaIPERS'
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 $1,234,817.
3. Actuarial Methods and Assumptions Used to Determine Total Pension Liability
The June 30, 2022 valuation was rolled forward to determine the June 30, 2023 total pension liability, based on
the following actuarial methods and assumptions:
Actuarial Cost Method
Net Pension
Liability
Net Pension
(Asset)
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Pension
Expense
Miscellaneous Plan
$ 10,869,642
$ —
$ 4,272,011 $
517,789
$ 615,960
PARS Retirement
benefit increase The lesser of contract COLA or 2.30% until purchasing
power protection allowance floor on purchasing power applies, 2.30%
thereafter
Enhancement Plan
—
(539,924)
931
154,872
322,604
Total pension plans
$ 10,869,642
$ (539,924)
$ 4,272,942 $
672,661
$ 938,564
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 (CaIPERS). 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, 2022 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 CaIPERS' audited financial statements are publicly available reports that can be obtained at CaIPERS'
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 $1,234,817.
3. Actuarial Methods and Assumptions Used to Determine Total Pension Liability
The June 30, 2022 valuation was rolled forward to determine the June 30, 2023 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 CaIPERS' 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
M.
CITY OF ROSEMEAD
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 10: DEFINED BENEFIT PENSION PLANS (CONTINUED)
The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based
on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. Mortality rates incorporate full
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 2021 experience study 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
Global equity -cap -weighted
30.00%
4.54%
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 2021-22 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.
6. 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
6*A
CITY OF ROSEMEAD
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 10: DEFINED BENEFIT PENSION PLANS (CONTINUED)
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 and actual 5 -year straight-line amortization
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, 2023 is 3.8 years, which was obtained by
dividing the total service years of 600,538 (the sum of remaining service lifetimes of the active employees) by
160,073 (the total number of participants: active, inactive, and retired) in CalPERS' PERF C pool. 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.
7. Proportionate Share of the Net Pension Liability
The City reports a net pension liability of $10,869,642, as of June 30, 2024 (measurement date: June 30, 2023).
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 as of June 30, 2022 and June 30,
2023 (measurement period), are as follows:
Proportion - June 30, 2022 0.8744%
Proportion - June 30, 2023 0.8713%
Change -0.3557%
8. Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the collective net pension liability calculated using a discount rate of 6.90%, as well as
what the collective 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%)
Proportionate share of net pension liability/(asset) $ 16,662,708 $ 10,869,642 $ 6,101,452
9. Pension Expense and Deferred Outflows and Deferred Inflows of Resources
For the fiscal year ended June 30, 2024, the City recognized $615,960 in pension expense.
The following table presents deferred outflows and deferred inflows of resources related to pensions as of the
m
CITY OF ROSEMEAD
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 10: DEFINED BENEFIT PENSION PLANS (CONTINUED)
June 30, 2024:
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 investments
Adjustments due to differences in
proportions
Difference in proportionate share
Total
Outflows Deferred Inflows
of Resources of Resources
1,234,817 $ —
656,249 —
555,280 86,137
1,759,894 —
65,771
— 431,652
$ 4,272,011 $ 517,789
Amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in
future pension expense as follows, except for the $1,234,817 deferred outflow related to contributions made
subsequent to the measurement date, which will be recognized as a reduction to the net pension liability in the
next fiscal year:
Deferred
(Inflows)
Fiscal year ended June 30, of Resources
2025
$ 682,082
2026
476,417
2027
1,310,406
2028
50,500
Total $ 2,519,405
C. PARS Retirement Enhancement Plan
1. Plan Description
The Plan is an agent, multiple -employer supplemental employee defined benefit pension plan (the Plan ll)
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 II. That report may be obtained writing to PARS, 3961 MacArthur Boulevard, Suite 200, Newport Beach,
California. 92660.
2. 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 CaIPERS 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
M,
CITY OF ROSEMEAD
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 10: DEFINED BENEFIT PENSION PLANS (CONTINUED)
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 II's provisions and benefits in effect at June 30, 2024, (measurement date) are summarized as follows:
3. Employees Covered
At June 30, 2022 (valuation date), the following employees were covered by the benefit terms:
Actives
Supplemental
Hire date
On or before June 30, 2010
Benefit formula
3% @ 55 less CalPERS 2.7% @ 55
Benefit vesting schedule
From date of hire
Benefit payments
Life only annuity
Retirement age
55
Monthly benefits, as a % of eligible compensation
0.576%
Required employee contributions rates
None
Required employer contribution rates
1.390%
3. Employees Covered
At June 30, 2022 (valuation date), the following employees were covered by the benefit terms:
Actives
26
Terminated vested & other inactives
0
Retirees and beneficiaries
19
Total
45
4. 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, 2024 (the measurement date), the employer's
contribution rate is 5.19% of annual payroll. Employer contribution rates may change if plan contracts are
amended. Employer Contributions for the measurement period ended June 30, 2024 are $81,312.
100
CITY OF ROSEMEAD
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 10: DEFINED BENEFIT PENSION PLANS (CONTINUED)
5. Actuarial Methods and Assumptions
The following actuarial methods and assumptions were used in the June 30, 2022, funding valuation:
Actuarial Cost Method
Entry Age Normal
Amortization Method
Level percent or level dollar
Level dollar
Closed, open, or layered periods
Closed
Amortization period at June 30, 2022
20 years
Amortization growth rate
0.00%
Asset Valuation Method
Smoothing period
None
Recognition method
None
Corridor
None
Inflation
2.30%
Salary Increases
Varies by entry age and service
Investment Rate of Return
6.50%
Cost of Living Adjustments
2.00%
Consistent with Non -Industrial rates used to value the
Mortality
Miscellaneous Public Agency CalPERS Pension Plans
6. Discount Rate
GASB Statement No. (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.
The following circumstances justify an alternative evaluation of sufficiency for the City:
The City 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.
101
CITY OF ROSEMEAD
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 10: DEFINED BENEFIT PENSION PLANS (CONTINUED)
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.
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. 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, 2024.
Asset Class
Index
Target
Allocation
Long -Term
Expected
Arithmetic
Real Rate
of Return
Long -Term
Expected
Geometric
Real Rate
of Return
US Cash
BAML 3 -Month T -Bills
9.50%
0.94%
0.91 %
US Core Fixed Income (Aggregate)
Bloomberg Barclays
31.91 %
2.52%
2.36%
Aggregate
US Short (1-3 Yr) Bonds
Bloomberg US Govt/
Credit 1-3 Yr
9.53%
1.65 %
1.59%
US High Yield Bonds
ICE BofA US High
Yield
1.43%
4.43%
3.87%
US Large & Mid Cap Equity
Russell 1000
25.24%
5.41 %
3.74%
US Mid Cap Equity
Russell Mid Cap
4.76%
5.98%
3.90%
US Small Cap Equity
Russell 2000
7.14%
6.99%
4.41 %
Foreign Developed Equity
MSCI EAFE NR USD
5.72%
6.92 %
5.12%
Emerging Markets Equity
MSCI EM NR USD
3.10%
9.34%
6.21 %
US REITs
FTSE Nareit All
Equity REITS
1.67%
6.91 %
4.72%
Assumed Inflation - Mean
2.31 %
2.30%
Assumed Inflation - Standard Deviation
1.45%
1.45%
Portfolio Real Mean Return
4.06%
3.58%
Portfolio Nominal Mean Return
6.37%
5.99%
Portfolio Standard Deviation
9.18%
City's Long -Term Expected Rate of Return
6.50%
7. Changes in 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, 2024,
102
CITY OF ROSEMEAD
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 10: DEFINED BENEFIT PENSION PLANS (CONTINUED)
using an annual actuarial valuation as of June 30, 2022.
Balance at June 30, 2023
Changes recognized for the
measurement period:
Service cost
Interest on total pension liability
Contributions -employer
Contributions -employee
Net investment income
Benefit payments, including refunds of
employee contributions
Administrative expense
Net changes during 2023-24
Total Pension
Plan Fiduciary
Net Pension
Liability
Net Position
Liability/(Asset)
(a)
(b)
(c) _ (a) - (b)
$2,852,675
$3,179,054
$(326,379)
23,129 — 23,129
179,675 — 179,675
— 81,312 (81,312)
336,191 (336,191)
(226,723) (226,723) —
(1,154) 1,154
(23,919) 189,626 (213,545)
Balance at June 30, 2024 $2,828,756 $3,368,680 $(539,924)
8. 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 liability/(asset) $ (244,971)
$ (539,924)
$ (791,420)
9. Pension Expense and Deferred OutflowslinFlows of Resources Related to Pensions
For the year ended June 30, 2024, the City recognized pension expense of $322,604. At June 30, 2024, the City
reported deferred outflows of resources and deferred inflows of resources related to pensions from the following
sources:
Changes of assumptions
Differences between expected and
actual experience
Net difference between projected
and actual earnings on pension
plan investments
Total
Outflows Deferred Inflows
of Resources of Resources
$ – $ 931
80,716 –
156 –
$ 154,872 $ 931
Amounts currently reported as deferred outflows of resources and deferred inflows of resources related to
103
CITY OF ROSEMEAD
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 10: DEFINED BENEFIT PENSION PLANS (CONTINUED)
pensions will be recognized in pension expense as follows:
Deferred
(Inflows)
Fiscal year ended June 30, of Resources
2025 $ 69,552
2026 140,269
2027 (29,031)
2028 (26,849)
Total $ 153,941
NOTE 11: DEFINED CONTRIBUTION PENSION 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 $81,312 to the plan.
NOTE 12: POST -EMPLOYMENT BENEFIT PLAN
A. 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.
B. Employees Covered
An employee is eligible for this employer contribution provided they are vested in their CalPERS pension benefit
and commence payment of their pension benefit within 120 days of retirement with the City. Vesting requires at
least 5 years of CalPERS 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.
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
CAPERS Health Plan (HC Plan) for eligible retirees and surviving spouses in receipt of a pension benefit from
CaIPERS.
The minimum required employer contribution is statutor ly 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 2023
104
CITY OF ROSEMEAD
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 12: POST -EMPLOYMENT BENEFIT PLAN (CONTINUED)
and 2024 were $133 and $148, respectively
Inactive members currently receiving benefits 29
Inactive members entitled to but not yet receiving benefits 8
Active members 64
Total 101
C. 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 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, 2023, the City recognized a total of $155,407 as a reduction to the
net OPEB liability.
D. Net OPEB Liability
The City's net OPEB liability was measured as of June 30, 2023, and the total OPEB liability used to calculate the
net OPEB liability was determined by an actuarial valuation dated June 30, 2023 was used to determine the total
OPEB liability, based on the following actuarial methods and assumptions:
105
CITY OF ROSEMEAD
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 12: POST -EMPLOYMENT BENEFIT PLAN (CONTINUED)
Valuation Date
Discount Rate
Long-term Rate of Return
Cost Method
Latest Experience Study Date
Mortality
Salary Scale
Inflation
PEMHCA Minimum Increase
Participation Rate
June 30, 2023
5.50%
5.50%
Entry Age Normal
No experience study was performed for the Plan. the CalPERS
2000-2019 Experience Study was the basis for assumptions
CalPERS 2000-2019 Experience Study. Mortaility projected fully
generational with Scale MP -2021
Aggregate 2.75% per year
2.50%
3.50% annually
PEMHCA Minimum - 70% currently covered; 50% currently waived
$500 - 80% current covered; 65% currently waived
$1,000 - 100% currently covered; 80% currently waived
Merit - CaIPERS 1997-2015 experience study.
Employer Contribution Cap Increase No future increases on $500 and $1,000 benefit
Change of assumptions 1) Updated medical trend rate
2) CalPERS 2000-2019 Experience Study was used for demographic
assumptions and merit salary increases
3) Mortality improvement scale was updated to Scale MP -2021
4) No future waived retiree re -elections assumed
5) PEMHCA minimum increases updated to 3.50% annually
Changes of benefit terms None
E. Expected Lona -Terre Rate of Return
The long-term expected rate of return on OPEB plan investment can be determined using a building-block method
in which the best -estimate ranges of expected future real rates of return (expected returns, net of OPEB plan
investment expenses and inflation) are developed for each major asset class.
These ranges are combined to produce the long-term expected rate of return by weighting the expected future
real rates of return by target asset allocation percentage and by adding expected inflation.
Best estimates for geometric real rates of return for each major asset class included int he OPEB plan's target
allocation adopted as of June 30, 2023 as provided by PARS -Moderate, are summarized in the following table:
Long -Term
Expected Real
Asset Class Target Allocation PARS -Moderate Rate of Return
Global Equity 50.00% 4.56%
Fixed Income 45.00% 0.78%
Cash 5.00% (0.50)%
Discount Rate
The discount rate used to measure the total OPEB liability was 5.50%. 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
CITY OF ROSEMEAD
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 12: POST -EMPLOYMENT BENEFIT PLAN (CONTINUED)
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.
G. Changes in the OPEB Liability/(Asset)
The changes in the net OPEB liability for the Plan are as follows:
Balance at June 30, 2023
Changes recognized for the
measurement period:
Service cost
Interest on total OPEB liability
Changes of assumptions
Differences between expected and
actual experience
Contributions -employer
Net investment income
Benefit payments, including refunds of
employee contributions
Administrative expense
Net changes during 2023-24
Total OPEB
Plan Fiduciary
Net OPEB
Liability
Net Position
Liability/(Asset)
(a)
(b)
(c) _ (a) - (b)
$ 4,694,919
$ 3,862,000
$ 832,919
118,873 —
118,873
259,041 —
259,041
3,113 —
3,113
(168,492) —
(168,492)
— 155,407
(155,407)
— 279,950
(279,950)
(207,902) (207,902) -
- (10,548) 10,548
4,633 216,907 (212,274)
Balance at June 30, 2024 $ 4,699,552 $ 4,078,907 $ 620,645
H. 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, 2023:
Discount Rate Current Discount Rate
-1 Percent Discount Rate +1 Percent
4.50% 5.50% 6.50%
Plan's net OPEB liability/(asset) $ 1,199,413 $ 620,645 $ 134,139
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, 2023:
Current
1 Percent Heathcare 1 Percent
Decrease Trend Rate Increase
Plan's net OPEB liability/(asset) $ 350,590 $ 620,645 $ 903,004
107
CITY OF ROSEMEAD
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 12: POST -EMPLOYMENT BENEFIT PLAN (CONTINUED)
J. 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 Karmen Ave,
Newport Beach, California 92660.
K. OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB
For the fiscal year ended June 30, 2024, the City recognized OPEB expense of $(7,212). As of fiscal year ended
June 30, 2024, 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 pension
plan investments
Total
Deferred Outflows Deferred Inflows
of Resources of Resources
$ 148,324 $ —
130,023 17,087
— 407,627
231,434 —
$ 509,781 $ 424,714
The $148,324 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 next fiscal year. The amounts reported as
deferred inflows of resources related to OPEB will be recognized as expense as follows:
Fiscal year ended June 30,
2025
2026
2027
2028
2029
Thereafter
Total
Deferred
Outflows/(Inflows)
of Resources
$ (16,970)
(35,542)
88,500
(39,577)
(6,846)
(52,822)
$ (63,257)
KIM
CITY OF ROSEMEAD
Notes to Financial Statements
For the Year Ended June 30, 2024
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 filed
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: FUND BALANCE CLASSIFICATIONS
At June 30, 2024, the City reports governmental fund balance classifications as follows:
Nonspendable
Notes and loans
receivable
Prepaid costs
Total nonspendable
Restricted
Community services
Low and moderate
income housing
Public works
Capital projects
Total restricted
Committed
Reserve
Capital projects
Total committed
Assigned
Building
maintenance
Tree in -lieu
Total assigned
Unassigned
Total fund balances
(deficits)
General Fund
Total
City Grants American Total Nonmajor Governmental
Fund Rescue Plan Funds Funds
$ 264,122 $ — $ — $ — $ 264,122
75,879 — — 24,150 100,029
340,001 — — 24,150 364,151
4,179,961 4,179,961
— — — 435,483
435,483
— 18,082,489
18,082,489
— 8,419,313
8,419,313
— — — 31,117,246
31,117,246
12,432,513 —
— — 12,432,513
214,915 —
— — 214,915
12,647,428 —
— — 12,647,428
71,617 — — — 71,617
61,331 — — — 61,331
132,948 — — — 132,948
21,345,526 (82,014) — (296,553) 20,966,959
$ 34,465,903 $(82,014) $ — $ 30,844,843 $ 65,228,732
109
CITY OF ROSEMEAD
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 15: 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.
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 $4,759,268, of which $4,757,989
was held as part of the City's cash pool, and the remaining $1,279 was held with fiscal agents.
B. Long -Term Debt
The debt of the Successor Agency as of June 30, 2024 is as follows:
Balance
June 30, 2023
Bonds payable
Tax Allocation Bonds,
Series 2010A $ 1,135,000 $
Amount
Balance Due Within
Additions Deletions June 30, 2024 One Year
— $ 1,135,000 $ — $
Tax Allocation Bonds,
Series 2016 16,725,000 — 1,185,000 15,540,000 1,245,000
Premium 1,067,942 — 106,794 961,148 —
Discount (3,695) — (3,695) — —
Total $ 18,924,247 $ — $ 2,423,099 $ 16,501,148 $ 1,245,000
lift,
CITY OF ROSEMEAD
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 15: SUCCESSOR AGENCY (CONTINUED)
Future debt service requirements are as follows:
June 30 Principal Interest
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 1,520,000 409,100
2030-2034 8,660,000 929,300
Total $ 15,540,000 $ 3,648,650
1. 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, 2024. 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. As of June 30, 2024, the bonds are fully matured with outstanding balance was $0.
2. 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, 2024, the outstanding balance was $15,540,000.
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 1X 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, 2024 is $19,188,650 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 $2,513,926 and the debt service obligation
on the bonds was $3,085,500.
111
CITY OF ROSEMEAD
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 16: BUDGETARY 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 the 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.
NOTE 17: SUBSEQUENT EVENTS
The City evaluated subsequent events for recognition and disclosure through December 9, 2024, the date on
which these financial statements were available to be issued. Management concluded that no material
subsequent events have occurred since June 30, 2024, that required recognition or disclosure in these financial
statements.
112
Required Supplementary Information
113
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114
Budgetary Comparison Schedules
115
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116
CITY OF ROSEMEAD
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
General Fund
For the Year Ended June 30, 2024
EXPENDITURES
Variance with
Current:
Final Budget
General government
Budget Amounts
Actual
Positive
393,790
Original
Final
Amounts
(Negative)
REVENUES
Community development
2,587,900
2,476,800
2,103,355
Property taxes
$ 22,628,200
$ 22,911,000
$ 23,218,804
$ 307,804
Licenses and permits
2,664,800
3,414,800
3,594,146
179,346
Intergovernmental
451,800
451,800
584,614
132,814
Charges for services
1,175,500
1,175,500
1,224,644
49,144
Use of money and property
1,274,100
1,524,100
2,057,296
533,196
Fines and forfeitures
598,300
598,300
604,725
6,425
Miscellaneous
44,500
44,500
32,528
(11,972)
Total revenues
28,837,200
30,120,000
31,316,757
1,196,757
EXPENDITURES
Current:
General government
5,508,000
5,508,000
5,114,210
393,790
Public safety
12,873,400
12,873,400
12,549,622
323,778
Community development
2,587,900
2,476,800
2,103,355
373,445
Parks and recreation
4,140,800
4,140,800
3,954,160
186,640
Public works
4,326,100
4,256,100
4,068,509
187,591
Capital outlay
102,700
317,615
154,685
162,930
Debt service:
Principal retirement
90,000
90,000
83,011
6,989
Interest and fiscal charges
—
—
3,735
(3,735)
Total expenditures
29,628,900
29,662,715
28,031,287
1,631,428
Excess (deficiency) of revenues
over (under) expenditures (791,700) 457,285 3,285,470 (434,671)
OTHER FINANCING SOURCES (USES)
Transfers in — 1,800,000 1,800,000 —
Transfers out (50,000) (3,050,000) (3,050,000) —
Total other financing sources (uses) (50,000) (1,250,000) (1,250,000) —
Net change in fund balance $ (841,700) $ (792,715) 2,035,470
Fund balance -beginning 32,430,433
Fund balance -ending $ 34,465,903
117
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118
CITY OF ROSEMEAD
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
City Grants Fund
For the Year Ended June 30, 2024
REVENUES
Intergovernmental
Total revenues
EXPENDITURES
Current:
Public safety
Community development
Public works
Capital outlay
Total expenditures
Net change in fund balance
Fund balance -beginning
Fund balance -ending
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
$ 138,000 $ 138,000 $ 1,455,791 $ 1,317,791
138,000 138,000 1,455,791 1,317,791
— —
$ —
22,500
(22,500)
60,000 60,000
—
60,000
78,000 78,000
77,454
546
— 361,580
25,832
335,748
138,000 499,580
125,786
373,794
119
1__L61,5801
1,330,005 $ 943,997
(1,412,019)
$ (82,014)
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120
CITY OF ROSEMEAD
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
American Rescue Plan
For the Year Ended June 30, 2024
REVENUES
Intergovernmental
Total revenues
EXPENDITURES
Current:
General government
Community development
Public works
Capital outlay
Total expenditures
Net change in fund balance
Fund balance -beginning
Fund balance -ending
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
$ 885,400 $ 885,400 $ 2,061,073 $ 1,175,673
885,400 885,400 2,061,073 1,175,673
189,800
189,800
186,784
3,016
85,600
685,600
76,833
608,767
210,000
210,000
95,774
114,226
400,000
5,701,600
1,701,682
3,999,918
885,400
6,787,000
2,061,073
4,725,927
$ — $ (5,901,600)
121
$ (3,550,254)
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122
Pension Plan
123
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124
CITY OF ROSEMEAD
Schedules of Proportationate Share of Net Pension Liability
As of June 30, for the Last Ten Fiscal Years
Reporting Date'
as of June 30,
Proportion of the
Net Pension
Liability
Proportionate
Share of Net
Pension Liability
Covered Payroll
Proportionate Share
of the Net Pension
Liability as a % of
Covered Payroll
Plan's Fiduciary
Net Position as a
% of the Total
Pension Liability
2024
0.8713%
$ 10,869,642
$ 4,412,785
246.3%
76.2%
2023
0.8744%
10,099,523
4,185,828
241.3%
76.7%
2022
0.0834%
4,509,289
3,888,373
116.0%
88.3%
2021
0.0828%
9,007,798
3,832,817
235.0%
75.3%
2020
0.0864%
8,856,781
3,903,914
226.9%
75.3%
2019
0.0919%
8,688,626
3,761,962
231.0%
75.3%
2018
0.0966%
9,309,566
3,690,780
252.2%
73.3%
2017
0.0996%
8,617,416
3,444,503
250.2%
74.1%
2016
0.2784%
7,638,064
4,604,511
165.9%
69.7%
2015
0.1100%
6,842,230
4,152,555
164.8%
155.3%
Notes to Schedule of Proportionate Share of the Net Pension Liability
Benefit Changes: None
Changes of Assumptions: None
125
CITY OF ROSEMEAD
Schedules of Plan Contributions
As of June 30, For the Last Ten Fiscal Years
Actuarially Determined Contribution
Contribution in Relation to the Actuarially Determined Contributions
Contribution Deficiency (Excess)
Covered Payroll
Contributions as a percentage of Covered Payroll
Notes to Schedule of Plan Contributions:
2024
2023
2022
2021
$ 1,234,817
$ 1,172,969
$ 1,036,079 $
1,013,310
(1,234,817)
(1,172,969)
(1,036,079)
(1,013,310)
$ 5,017,695 $ 4,412,785 $ 4,185,828 $ 3,888,373
24.61% 26.58% 24.75% 26.06%
The actuarial methods and assumptions used to set the actuarially determined contributions for fiscal year 2023-24 were derived from the
June 30, 2021 funding valuation report, available on CalPERS' website.
Actuarial Cost Method' Entry Age Normal
Amortization Method/Period: For details, see June 30, 2021 Funding Valuation Report
Asset Valuation Method: Fair value of assets, for details, see June 30, 2021 Funding Valuation Report
Inflation: 2.50%
Salary Increases Varies by entry age and service
Payroll Growth, 2.75%
Investment Rate of Return: 7.00% (net of administrative expenses)
Retirement Age: For details, see June 30, 2021 Funding Valuation Report
Mortality: For details, see June 30, 2021 Funding Valuation Report
126
CITY OF ROSEMEAD
Schedules of Plan Contributions (Continued)
As of June 30, 2023, For the Last Ten Fiscal Years
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
37.75% 35.58% 39.54% 30.18% 32.34% 19.78%
127
CITY OF ROSEMEAD
Schedule of Changes in the Net Pension Liability/(Asset) and Related Ratios
PARS Retirement Enhancement Plan
As of June 30, for the Last Ten Fiscal Years
TOTAL PENSION LIABILITY
Service cost
Interest
Effect of liability gains or losses
Effect of assumption changes or inputs
Benefit payments, including refunds of
employee contributions
Net change in total pension liability
Total pension liability -beginning
Total pension liability -ending (a)
PLAN FIDUCIARY NET POSITION
Contributions -employer
Net investment income
Benefit payments, including refunds of
employee contributions
Other changes in fiduciary net position
Net change in fiduciary net position
Plan fiduciary net position -beginning
Plan fiduciary net position -ending (b)
Net pension liability/(asset) (a) - (b)
Plan fiduciary net position as a percentage of
the total pension liability
Covered payroll
Plan net pension liability/(asset) as a
percentage of covered -employee payroll
2024 2023 2022 2021
$ 23,129 $ 22,499 $ 24,732 $ 24,070
179,675 173,711 175,746 171,039
— 120,849 — 110,471
(1,863) — —
(226,723)
(221,524)
(237,325)
(230,403)
(23,919)
2,852,675
93,672
2,759,003
(36,847)
2,795,850
75,177
2,720,673
2,828,756
2,852,675
2,759,003
2,795,850
81,312
75,945
68,424
75,165
336,191
208,826
(459,657)
660,793
(226,723)
(221,524)
(237,325)
(230,403)
(1,154)
(1,231)
(1,280)
(1,316)
189,626
62,016
(629,838)
504,239
3,179,054
3,117,038
3,746,876
3,242,637
3,368,680
3,179,054
3,117,038
3,746,876
$ (539,924)
$ (326,379)
$ (358,035)
$(951,026)
119.1% 111.4% 113.0% 134.0%
$ 1,566,427 $ 1,663,456 $ 1,618,148 $ 1,780,371
-34.5% -19.6% -22.1% -53.4%
128
CITY OF ROSEMEAD
Schedule of Changes in the Net Pension Liability/(Asset) and Related Ratios (Continued)
PARS Retirement Enhancement Plan
As of June 30, for the Last Ten Fiscal Years
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
(1,461)
(6,848)
(2,624)
(5,864)
(220,611)
(206,738)
(201,490)
(200,693)
(218,411)
(234,960)
(12,431)
111,577
113,030
223,732
41,861
92,216
(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)
1 (440,540)
$ (334,737) $
216,238 $
239,805
119.2%
$ 2,300,378 $
-22.7%
118.7% 116.3% 112.4%
2,238,812 $ 2,178,892 $ 2,414,510 $
-22.9% -20.2% -13.9%
129
92.8% 92.0%
2,344,184 $ 3,060,587
9.2% 7.8%
CITY OF ROSEMEAD
PARS Retirement Enhancement Plan
Schedule of Contributions
As of June 30, for the Last Ten Fiscal Years'
2024 2023 2022 2021
Actuarially Determined Contribution $23,129 $22,492 $24,747 $20,100
Contribution in Relation to the Actuarially
Determined Contributions (81,312) (75,945) (68,424) (75,165)
Contribution Deficiency (Excess) $(58,183) $(53,453) $(43,677) $(55,065)
Covered Payroll
$1,566,427
$1,663,456
$1,618,148
$1,780,371
Contributions as a percentage of Covered Payroll
5.19%
4.57%
4.23%
4.22%
Notes to Schedule of Plan Contributions:
The actuarial methods and assumptions used to set the actuarially determined contributions for fiscal year 2023-24 were derived from the
June 30, 2022 funding valuation report prepared by Milliman.
Actuarial Cost Method: Entry Age Normal
Amortization Method/Period: Level dollar, dosed period, amortized over 20 years
Asset Valuation Method: Fair value of assets
Inflation, 2.30%
Salary Increases: Varies by entry age and service
Payroll Gmwth: 2.80%
Investment Rate of Return: 6.50%
Retirement Age: 20% retirement at age 60; 30% retirement at age 55; 100% retirement assumed at age 80.
Mortality: Consisent with CalPERS Miscellaneous Pension Plans after June 30, 2021.
130
2020 2019 2018
$25,970 $73,864 $81,888
CITY OF ROSEMEAD
PARS Retirement Enhancement Plan
Schedule of Contributions (Continued)
As of June 30, for the Last Ten Fiscal Years'
2017 2016 2015
$88,845 $116,244 $133,267
(112,649) (131,770) (140,376) (164,389) (265,241) (273,711)
$(86,679) $(57,906) $(58,488) $(75,544) $(148,997) $(140,444)
$2,300,378 $2,238,812 $2,178,892 $2,414,510 $2,344,184 $3,060,587
4.90% 5.89% 6.44% 6.81% 11.31% 8.94%
131
CITY OF ROSEMEAD
Schedule of Changes in the Net OPEB Liability/(Asset) and Related Ratios
As of June 30, for the Last Ten Fiscal Years'
Measurement Date
TOTAL OPEB LIABILITY
Service cost
Interest on total OPEB liability
Actual and expected difference
Changes in assumptions
Benefit payments
Net change in total OPEB liability
Total OPEB liability -beginning
Total OPEB Ilability-ending (a)
PLAN FIDUCIARY NET POSITION
Contnbutions-employer
Net investment income
Benefit payments
Administrative expense
Net change in fiduciary net position
2024 2023 2022 2021
6/30/2023 6/30/2022 6/30/2021 6/30/2020
$ 118,873 $
115,691 $
116,753 $
115,714
259,041
250,578
258,626
249,416
(168,492)
—
(106,136)
—
3,113
—
200,671
—
(207,902)
(223,257)
(223,397)
(201,882)
4,633
143,012
246,517
163,248
4,694,919 4,551,907 4,305,390 4,142,142
4,699,552 4,694,919 4,551,907 4,305,390
155,407
100,859
179,672
45,227
279,950
(607,709)
848,323
136,814
(207,902)
(223,257)
(223,397)
(201,882)
(10,548)
(11,901)
(11,139)
(10,252)
216,907 (742,008) 793,459 (30,093)
Plan fiduciary net position -beginning
3,862,000
4,604,008
3,810,549
3,840,642
Plan fiduciary net posttton�ending (b)
4,078,907
3,862,000
4,604,008
3,810,549
Net OPER liability/(asset) (a) - (b)
$ 620,645 $
832,919E
(52,101) $
494,841
Plan fiduciary net position as a percentage of the
total OPEB liability 86.8% 82.3% 101.1% 88.5%
Covered -employee payroll $ 4,412,785 $ 4,185,828 $ 3,888,373 $ 3,832,817
Plan net OPEB liabilityl(asset) as a percentage of
covered -employee payroll
14.1% 19.9% -1.3% 12.9%
Notes to Schedule of Changes in the Net OPEB Liability/(Asset) and Related Ratios:
Benefit Changes: None
Changes in Assumptions: Refer to Note 12 to the Basic Financial Statements
' Fiscal year 2018 was the first year of implementation; therefore, only seven years are shown.
132
CITY OF ROSEMEAD
Schedule of Changes in the Net OPEB Liability/(Asset) and Related Ratios (Continued)
As of June 30, for the Last Ten Fiscal Yearsl
2020
2019
2018
2017
2016
2015
6/30/2019
6/30/2018
6/30/2017
6/30/2016
6/30/2015
6/30/2014
(165,606)
(142,897)
(119,682)
N/A
N/A
N/A
$ 155,962 $
151,419 $
147,009
N/A
N/A
N/A
268,709
253,402
237,920
N/A
N/A
N/A
(479,267)
-
-
N/A
N/A
N/A
(42,977)
-
-
N/A
N/A
N/A
(165,606)
(142,897)
(119,682)
N/A
N/A
N/A
(263,179) 261,924 265,247 N/A N/A N/A
4,405,321 4,143,397 3,878,150 N/A N/A N/A
4,142,142 4,405,321 4,143,397 N/A NIA NIA
97,132
22,063
158,082
N/A
N/A
N/A
242,596
223,704
336,797
N/A
N/A
N/A
(165,606)
(142,897)
(119,682)
N/A
N/A
N/A
(9,719)
(9,889)
(8,925)
N/A
N/A
N/A
164,403
92,981
366,272
NIA
NIA
N/A
3,676,239
3,583,258
3,216,986
N/A
N/A
N/A
3,840,642
3,676,239
3,583,258
N/A
N/A
N/A
$ 301,500 $
729,082 $
560,139
N/A
N/A
N/A
92.7%
83.4%
86.5%
N/A
N/A
N/A
$ 3,932,817 $
3,903,814 $
3,690,780
N/A
NIA
N/A
7.7%
18.7%
15.2%
N/A
N/A
N/A
133
CITY OF ROSEMEAD
Other Post -Employment Benefit Plan
Schedule of Contributions
As of June 30, For the Last Ten Fiscal Years'
2024
2023
2022
2021
$ 148,301
$ 154,597 $
167,000
$ 163,000
Actuarially Determined Contribution
(148,324)
(154,691)
(100,859)
(179,672)
Contribution in Relation to the Actuarially
Determined Contributions
$ (23)
$ (94) $
66,141
$ (16,672)
Contribution Deficiency (Excess)
$ 5,017,695
$ 4,412,785 $
4,185,828
$ 3,888,373
Covered -Employee Payroll
2.96%
3.51%
2.41%
4.62%
Contributions as a percentage of Covered -
Employee Payroll
Notes to Schedule of Plan Contributions:
The following assumptions were used to determine the 2023/2024 Actuarially Determined Contribution:
The Actuarially Determined Contribution is calculated using a June
Calculation Timing: 30, 2021 valuation date.
Interest Rate: 5.50%
Covered Employee Payroll: As reported by the City
All other assumptions and methods used for determinig the
Actuarially Determined Contribution can be found in the June 30,
2021 Actuarial Valuation Report for the City of Rosemead Retiree
Healthcare Plan prepared by Foster & Foster Actuaries and
Assumptions: Consultants.
1 Fiscal year 2018 was the first year of implementation; therefore, only seven years are shown.
134
CITY OF ROSEMEAD
Other Post -Employment Benefit Plan
Schedule of Contributions (Continued)
As of June 30, For the Last Ten Fiscal Years'
2020 2019 2018 2017 2016 2015
$ 202,000 $ 197,000 $ 192,000 N/A N/A N/A
(45,227) (97,132) (22,063) N/A N/A N/A
$ 156,773
$
99,868
$
169,937
N/A
N/A
N/A
$ 3,832,817
$
3,932,817
$
3,903,814
N/A
N/A
N/A
1.18% 2.47% 0.57% N/A N/A N/A
135
THIS PAGE INTENTIONALLY. LEFT BLANK
136
Combining and Individual Fund Statements and Schedules
137
Ioday's Small Totem Anmri( a
THIS PAGE INTENTIONALLY LEFT BLANK
138
Nonmajor Governmental Funds
139
Iuday'N Small Town ,kmvrir a
THIS PAGE INTENTIONALLY LEFT BLANK
140
CITY OF ROSEMEAD
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2024
ASSETS
Cash and investments
Receivables (net of allowance for uncollectible):
Accounts
Accrued interest
Due from other governments
Notes and loans
Prepaid costs
Total assets
LIABILITIES
Accounts payable
Retentions payable
Accrued liabilities
Deposits payable
Due to other funds
Unearned revenues
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Total deferred inflows of resources
FUND BALANCES (DEFICITS)
Nonspendable
Restricted
Unassigned
Total fund balances (deficits)
Total liabilities, deferred Inflows of resources,
and fund balances (deficits)
141
Special Revenue Funds
Local Transportation
SLFRF State Gas Tax and Sidewalk Grant
$ 480,414 $ 4,081,382 $ 2,458
— 8,000 —
37,732 —
119,354 —
$ 480,414 $ 4,246,468 $ 2.458
$ — $ 101,239 $ 2,500
— 6,445 —
480,414 — _
480,414 107,684 2,500
— 4,138,784 -
- (42)
4,138,784 - (42)
$ 480,414 $ 4,246,468 $ 2,458
CITY OF ROSEMEAD
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2024
Special Revenue Funds
Air Quality
Management
Proposition A
Proposition C
Measure R Measure M
District
ASSETS
Cash and investments
$ 2,414,295
$ 3,427,917 $
2,727,252 $
3,666,836
$ 476,077
Receivables (net of allowance for uncollectible):
Accounts
_
Accrued interest
22,322
31,683
25,304
34,504
4,302
Due from other governments
—
87,264
65,640
74,419
16,829
Notes and loans
Prepaid costs
_
_
Total assets
$ 2,436,617
$ 3,546,864 $
2,818,196 $
3,775,759
$ 497,208
LIABILITIES
Accounts payable $ 4,671 $ 227,577 $ 22,670 $ 13,700 $ 2,898
Retentions payable _ — _ _ _
Accrued liabilities 2,544 1,713 706 372 32
Deposits payable _ _ — _ _
Due to other funds
Unearned revenues _
Total liabilities 7,215 229,290 23,376 14,072 2,930
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Total deferred inflows of resources
FUND BALANCES (DEFICITS)
Nonspendable _ _ _ — _
Restricted 2,429,402 3,317,574 2,794,820 3,761,687 494,278
Unassigned _ _ — _ _
Total fund balances (deficits) 2,429,402 3,317,574 2,794,820 3,761,687 494,278
Total liabilities, deferred Inflows of resources,
and fund balances (deficits) $ 2,436,617 $ 3,546,864 $ 2,818,196 $ 3,775,759 $ 497,208
142
CITY OF ROSEMEAD
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2024
LIABILITIES
Accounts payable $ 293,083 $ — $ — $ 7,300 $ —
Retentions payable 6,836 — — _ _
Accrued liabilities 3,965 — —
Deposits payable — _ _
Due to other funds
Unearned revenues —
Total liabilities 303,884 — — 7,300 —
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues —
Total deferred inflows of resources
FUND BALANCES (DEFICITS)
Nonspendable — _ _ _ _
Restricted 3,499,654 185,610 24,759 174,245 593,672
Unassigned _ _ _ — _
Total fund balances (deficits) 3,499,654 185,610 24,759 174,245 593,672
Total liabilities, deferred inflows of resources,
and fund balances (deficits) $ 3,803,538 6 185,610 $ 24,759 $ 181,545 $ 593,672
143
Special Revenue Funds
Development
Development
Development
Development
Street
Impact Fee
Impact Fee
Impact Fee
Impact Fee
Lighting
Traffic
Public Safety
General Govt
Parks
ASSETS
Cash and investments
$ 3,741,053
$ 183,942
$ 24,537
$ 179,869
$ 588,375
Receivables (net of allowance for uncollectible):
Accounts
_
Accrued interest
34,363
1,668
222
1,676
5,297
Due from other governments
28,122
—
—
_
_
Notes and loans
—
Prepaid costs
_
_
_
Total assets
$ 3,803,538
$ 185,610
$ 24,759
$ 1811545
$ 593,672
LIABILITIES
Accounts payable $ 293,083 $ — $ — $ 7,300 $ —
Retentions payable 6,836 — — _ _
Accrued liabilities 3,965 — —
Deposits payable — _ _
Due to other funds
Unearned revenues —
Total liabilities 303,884 — — 7,300 —
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues —
Total deferred inflows of resources
FUND BALANCES (DEFICITS)
Nonspendable — _ _ _ _
Restricted 3,499,654 185,610 24,759 174,245 593,672
Unassigned _ _ _ — _
Total fund balances (deficits) 3,499,654 185,610 24,759 174,245 593,672
Total liabilities, deferred inflows of resources,
and fund balances (deficits) $ 3,803,538 6 185,610 $ 24,759 $ 181,545 $ 593,672
143
CITY OF ROSEMEAD
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2024
ASSETS
Cash and investments $
Receivables (net of allowance for uncollectible):
A
Revenue Funds
- $ 853,132 $ 345,775 $ 3,564,527 $ 1,168,722
ccounts - - _ _ _
Accrued interest - 8,738 2,457 38,481 9,200
Due from other governments 251,225 259,076 340,793 229,913 -
Notes and loans - 3,524,835 - - -
Prepaid costs - - 24,150 - -
Total assets $ 251,225 $ 4,645,781 $ 713,175 $ 3,832,921 $ 1,177,922
LIABILITIES
Accounts payable
Retentions payable
Accrued liabilities
Deposits payable
Due to other funds
Unearned revenues
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Total deferred inflows of resources
FUND BALANCES (DEFICITS)
Nonspendable
Restricted
Unassigned
Total fund balances (deficits)
$ 176,696 $ 47,511 $ 38,349 $ 114,332 $ 17,645
- - - 3,668 -
896 244 - 750 -
- - 45,094 - -
131,945 - 170,099 - -
309,537 47,755 253,542 118,750 17,645
- 418,065 - - -
418,065 - - -
- 24,150 - -
- 4,179,961 435,483 3,714,171 1,160,277
(58,312) - - - -
(58,312) 4,179,961 459,633 3,714,171 1,160,277
Total liabilities, deferred Inflows of resources,
and fund balances (deficits) $ 251,225 $ 4,645,781 $ 713,175 $ 3,832,921 $ 1,177,922
144
Road
Maintenance
Community
and
Development
HDC Senior Rehabilitation Clean Water
Block Grant HOME Fund
Housing Account Fund
- $ 853,132 $ 345,775 $ 3,564,527 $ 1,168,722
ccounts - - _ _ _
Accrued interest - 8,738 2,457 38,481 9,200
Due from other governments 251,225 259,076 340,793 229,913 -
Notes and loans - 3,524,835 - - -
Prepaid costs - - 24,150 - -
Total assets $ 251,225 $ 4,645,781 $ 713,175 $ 3,832,921 $ 1,177,922
LIABILITIES
Accounts payable
Retentions payable
Accrued liabilities
Deposits payable
Due to other funds
Unearned revenues
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Total deferred inflows of resources
FUND BALANCES (DEFICITS)
Nonspendable
Restricted
Unassigned
Total fund balances (deficits)
$ 176,696 $ 47,511 $ 38,349 $ 114,332 $ 17,645
- - - 3,668 -
896 244 - 750 -
- - 45,094 - -
131,945 - 170,099 - -
309,537 47,755 253,542 118,750 17,645
- 418,065 - - -
418,065 - - -
- 24,150 - -
- 4,179,961 435,483 3,714,171 1,160,277
(58,312) - - - -
(58,312) 4,179,961 459,633 3,714,171 1,160,277
Total liabilities, deferred Inflows of resources,
and fund balances (deficits) $ 251,225 $ 4,645,781 $ 713,175 $ 3,832,921 $ 1,177,922
144
CITY OF ROSEMEAD
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2024
LIABILITIES
Accounts payable
Special Revenue
Capital Projects
Retentions payable
— —
Funds
Funds
2,705 —
20,372
Deposits payable
— —
Total
Due to other funds
— 194,701
Measure R Capital
Nonmajor
— —
SB1383
Projects
Funds
ASSETS
DEFERRED INFLOWS OF RESOURCES
Cash and investments
$ 213,540
$ — $
28,140,103
Receivables (net of allowance for uncollectible):
— 238,199
656,264
Accounts
—
—
8,000
Accrued interest
2,034
—
259,983
Due from other governments
—
238,199
1,710,834
Notes and loans
—
—
3,524,835
Prepaid costs
—
—
24,150
Total assets
$ 215,574
$ 238,199 $
33,667,905
LIABILITIES
Accounts payable
$ — $ 43,498 $
1,113,669
Retentions payable
— —
10,504
Accrued liabilities
2,705 —
20,372
Deposits payable
— —
45,094
Due to other funds
— 194,701
496,745
Unearned revenues
— —
480,414
Total liabilities
2,705 238,199
2,166,798
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
— 238,199
656,264
Total deferred inflows of resources
— 238,199
656,264
FUND BALANCES (DEFICITS)
Nonspendable — — 24,150
Restricted 212,869 — 31,117,246
Unassigned — (238199
(296,553)
Total fund balances (deficits) 212,869 (238,199) 30,844,843
Total liabilities, deferred inflows of resources,
and fund balances (deficits) $ 215,574 $ 238,199 $ 33,667,905
145
CITY OF ROSEMEAD
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2024
EXPENDITURES
Special Revenue Funds
Current:
General government -
Local
- 4,457
4,201
Public safety -
55,846
- 54,266
Transportation
Community development -
-
- -
_
Parks and recreation -
and Sidewalk
Public works -
SLFRF
State Gas Tax
Grant
Proposition A
Proposition C
REVENUES
9,058
Debt service: _
-
Taxes
$ _
$ _
$ _ $
_
$ _
Intergovernmental
1,872,368
1,383,500
49,900
1,339,369
1,110,976
Charges for services
-
8,000
-
9,215
10,994
Use of money and property
-
160,884
58
91,145
130,327
Developer contributions
-
_
-
Miscellaneous
_Total
revenues
1,872,368
1,552,384
49,958
1,439,729
1,252,297
EXPENDITURES
Current:
General government -
5,931
- 4,457
4,201
Public safety -
55,846
- 54,266
37,742
Community development -
-
- -
_
Parks and recreation -
_
Public works -
741,517
50,000 475,967
961,066
Capital outlay 72,368
-
- -
9,058
Debt service: _
-
Principal retirement -
21,630
- _
-
Total expenditures 72,368
824,924
50,000 534,690
1,012,067
Excess (deficiency) of revenues
over (under) expenditures 1,800,000
727,460
(42) 905,039
240,230
OTHER FINANCING SOURCES
(USES)
Transfers out (1,800,000)
Total other financing sources
(uses) (1,800,000)
Net change in fund balances - 727,460 (42) 905,039 240,230
Fund balances -beginning - 3,411,324 - 1,524,363 3,077,344
Fund balances (deficit)cnding $ - $ 4,138,784 $ (421 $ 2,429,402 $ 3.317,574
146
CITY OF ROSEMEAD
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances(Continued)
Nonmajor Governmental Funds
For the Year Ended June 30, 2024
REVENUES
Taxes
Intergovernmental
Charges for services
Use of money and property
Developer contributions
Miscellaneous
Total revenues
EXPENDITURES
Current:
General government
Public safety
Community development
Parks and recreation
Public works
Capital outlay
Debt service:
Principal retirement
Total expenditures
Special Revenue Funds
Air Quality Development
Management Impact Fee
Measure R Measure M District Street Lighting Traffic
$ — $ — $ — $ 206,396 $ —
832,971 940,602 65,726 1,250,922 —
105,512 151,024 18,456 144,783 6,700
— — — — 49,240
938,483 1,091,626 84,182 1,602,101 55,940
4,052
208,083 308,848 3,894 1,587,173 —
1,039,211 1,144,180 — 169,797 —
— — 34,774 — _
1,251,346 1,453,028 38,668 1,756,970 —
Excess (deficiency) of revenues
over (under) expenditures (312,863) (361,402) 45,514 (154,869) 55,940
OTHER FINANCING SOURCES
(USES)
Transfers out
Total other financing sources
(uses)
Net change in fund balances (312,863) (361,402) 45,514 (154,869) 55,940
Fund balances -beginning 3,107,683 4,123,089 448,764 3,654,523 129,670
Fund balances (deficit) -ending $ 2,794,820 $ 3,761,687 $ 494,278 $ 3,499,654 $ 185,610
147
CITY OF ROSEMEAD
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances(Continued)
Nonmajor Governmental Funds
For the Year Ended June 30, 2024
Special Revenue Funds
EXPENDITURES
Current:
General government
Public safety
Community development
Parks and recreation
Public works
Capital outlay
Debt service:
Principal retirement
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
OTHER FINANCING SOURCES
(USES)
Transfers out
Total other financing sources
(uses)
Net change in fund balances
- - - 2,461 -
3,260 - _ _ _
- - - 954,559 504,388
- - - 27,060 -
22,431 - 442,007 -
- - 288,460 -
3,260 22,431 - 1,714,547 504,388
4,867 34,530 233,536 (59,780) 107,282
4,867 34,530 233,536 (59,780) 107,282
Fund balances -beginning 19,892 139,715 360,136 1,468 4,072,679
Fund balances (deficit) -ending S 24,759 S 174,245 $ 593,672 $ (58,312) $ 4,179,961
148
Development
Development
Community
Impact Fee
Impact Fee
Development
Development
Public Safety
General Govt
Impact Fee Parks
Block Grant
HOME Fund
REVENUES
Taxes $
_ $
_
$ _
$ _
$ -
Intergovernmental
-
-
-
1,648,398
574,387
Charges for services
-
-
-
6,369
-
Use of money and property
975
7,008
20,604
-
37,283
Developer contributions
7,152
49,953
212,932
-
-
Miscellaneous
-
-
_
Total revenues
8,127
56,961
233,536
1,654,767
611,670
EXPENDITURES
Current:
General government
Public safety
Community development
Parks and recreation
Public works
Capital outlay
Debt service:
Principal retirement
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
OTHER FINANCING SOURCES
(USES)
Transfers out
Total other financing sources
(uses)
Net change in fund balances
- - - 2,461 -
3,260 - _ _ _
- - - 954,559 504,388
- - - 27,060 -
22,431 - 442,007 -
- - 288,460 -
3,260 22,431 - 1,714,547 504,388
4,867 34,530 233,536 (59,780) 107,282
4,867 34,530 233,536 (59,780) 107,282
Fund balances -beginning 19,892 139,715 360,136 1,468 4,072,679
Fund balances (deficit) -ending S 24,759 S 174,245 $ 593,672 $ (58,312) $ 4,179,961
148
CITY OF ROSEMEAD
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances(Continued)
Nonmajor Governmental Funds
For the Year Ended June 30, 2024
EXPENDITURES
Current:
General government
Capital
Public safety
- - - - - 151,114
Community development
1,044,112 - - - - 2,503,059
Parks and recreation
- - - - - 27,060
Projects
- 47,456 257,957 62,879 - 5,169,278
Capital outlay
- 1,752,932 6,410 - 146,380 4,628,796
Special Revenue Funds
_ - _
Funds
- - - - - 56,404
Total expenditures
1,044,112 1,800,388 264,367 62,879 146,380 12,556,813
Road
Maintenance
Total
HDC Senior
and
Rehabilitation
Clean Water
Measure R
Capital
Nonmajor
Housing
Account
Fund
SB1383
Protects
Funds
REVENUES
Taxes
$ -
$ -
$ -
$ -
$ -
$ 206,396
Intergovernmental
550,267
1,319,231
571,026
265,000
7,254
13,781,897
Charges for services
485,969
-
-
-
-
520,547
Use of money and property
9,611
171,131
32,208
10,748
-
1,098,457
Developer contributions
-
-
-
-
-
319,277
Miscellaneous
5,022
-
-
-
-
5,022
Total revenues
1,050,869
1,490,362
603,234
275,748
7,254
15,931,596
EXPENDITURES
Current:
General government
- _ _ _ - 21,102
Public safety
- - - - - 151,114
Community development
1,044,112 - - - - 2,503,059
Parks and recreation
- - - - - 27,060
Public works
- 47,456 257,957 62,879 - 5,169,278
Capital outlay
- 1,752,932 6,410 - 146,380 4,628,796
Debt service:
_ - _
Principal retirement
- - - - - 56,404
Total expenditures
1,044,112 1,800,388 264,367 62,879 146,380 12,556,813
Excess (deficiency) of revenues
over (under) expenditures 6,757 (310,026) 338,867 212,869 (139,126) 3,374,783
OTHER FINANCING SOURCES
(USES)
Transfers out - _
- - - (1,800,000)
Total other financing sources
(uses) - - - - - (1,800,000)
Net change in fund balances 6,757 (310,026) 338,867 212,869 (139,126) 1,574,783
Fund balances -beginning 452,876 4,024,197 821,410 - (99,073) 29,270,060
Fund balances (deficit)-anding $ 459,633 $ 3,714,171 $ 1,160,277 $ 212,869 $ (238,199) E 30,844,843
149
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150
Budgetary Comparison Schedules
151
CITY OF ROSEMEAD
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
SLFRF
For the Year Ended June 30, 2024
REVENUES
Intergovernmental
Total revenues
EXPENDITURES
Current:
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over(under)expenditures
OTHER FINANCING SOURCES (USES)
Transfers out
Total other financing sources (uses)
Net change in fund balance
Fund balance -beginning
Fund balance -ending
Budget Amounts
Original Final
Variance with
Final Budget
Actual Positive
Amounts (Negative)
— 1,872,368 1,872,368
1,872,368 1,872,368
— 2,150,000
72,368
2,077,632
— 2,150,000
72,368
2,077,632
— (2,150,000)
1,800,000
(205,264)
— (1,800,000) (1,800,000) -
- (1,800,000) (1,800,000)
152
CITY OF ROSEMEAD
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
State Gas Tax
For the Year Ended June 30, 2024
REVENUES
Intergovernmental
Charges for services
Use of money and property
Total revenues
EXPENDITURES
Current:
General government
Public safety
Public works
Capital outlay
Debt service:
Principal retirement
Total expenditures
Net change in fund balance
Fund balance -beginning
Fund balance -ending
Budget Amounts
Original Final
Variance with
Final Budget
Actual Positive
Amounts (Negative)
$ 1,447,600 $ 1,447,600 $ 1,383,500 $ (64,100)
8,000 8,000 8,000 —
10,000 10,000 160,884 150,884
1,465,600 1,465,600 1,552,384 86,784
3,900
3,900
5,931 (2,031)
62,300
62,300
55,846 6,454
1,057,300
1,172,300
741,517 430,783
250,000
1,566,500
— 1,566,500
22,000 22,000 21,630 370
1,395,500 2,827,000 824,924 2,002,076
$ 70,100 $ (1,361,400)
153
727,460
3,411,324
$ 4,138,784
CITY OF ROSEMEAD
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Local Transportation and Sidewalk Grant
For the Year Ended June 30, 2024
REVENUES
Intergovernmental
Use of money and property
Total revenues
EXPENDITURES
Current:
Public works
Capital outlay
Total expenditures
Net change in fund balance
Fund balance -beginning
Fund balance -ending
Budget Amounts
Original Final
Variance with
Final Budget
Actual Positive
Amounts (Negative)
50,000 50,000 49,900 (100)
— — 58 58
50,000 50,000 49,958 (42)
— 50,000 50,000 —
50,000 — — _
50,000 50,000 50,000 —
— — (42) (42)
154
(42)
CITY OF ROSEMEAD
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Proposition A
For the Year Ended June 30, 2024
REVENUES
Intergovernmental
Charges for services
Use of money and property
Total revenues
EXPENDITURES
Current:
General government
Public safety
Public works
Total expenditures
Net change in fund balance
Fund balance -beginning
Fund balance -ending
Budget Amounts
Original Final
Variance with
Final Budget
Actual Positive
Amounts (Negative)
$ 1,460,000 $
1,460,000 $
1,339,369 $
(120,631)
16,900
16,900
9,215
(7,685)
10,000
10,000
91,145
81,145
1,486,900
1,486,900
1,439,729
(47,171)
6,900 6,900
4,457
2,443
— 72,000
54,266
17,734
494,300 494,300
475,967
18,333
501,200 573,200
534,690
38,510
$ 985,700 $ 913,700
155
905,039 $ (85,681)
1,524,363
$ 2,429,402
CITY OF ROSEMEAD
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Proposition C
For the Year Ended June 30, 2024
REVENUES
Intergovernmental
Charges for services
Use of money and property
Total revenues
EXPENDITURES
Current:
General government
Public safety
Public works
Capital outlay
Total expenditures
Net change in fund balance
Fund balance -beginning
Fund balance -ending
Budget Amounts
Original Final
Variance with
Final Budget
Actual Positive
Amounts (Negative)
$ 1,211,000 $ 1,211,000 $ 1,110,976 $ (100,024)
— — 10,994 10,994
30,000 30,000 130,327 100,327
1,241,000 1,241,000 1,252,297 11,297
6,900
6,900
4,201
2,699
22,500
45,000
37,742
7,258
1,025,800
1,030,900
961,066
69,834
—
2,933,427
9,058
2,924,369
1,055,200
4,016,227
1,012,067
3,004,160
$ 185,800
156
240,230
3,077,344
$ 3,317,574
CITY OF ROSEMEAD
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Measure R
For the Year Ended June 30, 2024
REVENUES
Intergovernmental
Use of money and property
Total revenues
EXPENDITURES
Current:
General government
Public works
Capital outlay
Total expenditures
Net change in fund balance
Fund balance -beginning
Fund balance -ending
6,900
6,900
Variance with
2,848
45,700
Final Budget
Budget Amounts
Actual
Positive
Original Final
Amounts
(Negative)
442,600
1,543,658
1,251,346
$ 908,000 $ 908,000
$ 832,971
$ (75,029)
15,000 15,000
105,512
90,512
923,000 923,000
938,483
15,483
6,900
6,900
4,052
2,848
45,700
435,700
208,083
227,617
390,000
1,101,058
1,039,211
61,847
442,600
1,543,658
1,251,346
292,312
$ 480,400 $ (620,658)
157
(312,863)
3,107,683
$ 2,794,820
CITY OF ROSEMEAD
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Measure M
For the Year Ended June 30, 2024
REVENUES
Intergovernmental
Use of money and property
Total revenues
EXPENDITURES
Current:
Public works
Capital outlay
Total expenditures
Net change in fund balance
Fund balance -beginning
Fund balance -ending
Variance with
33,300
283,300
308,848
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
1,825,472
$ 1,028,000 $
1,028,000
$ 940,602
$ (87,398)
20,000
20,000
151,024
131,024
1,048,000
1,048,000
1,091,626
43,626
33,300
283,300
308,848
(25,548)
250,000
2,995,200
1,144,180
1,851,020
283,300
3,278,500
1,453,028
1,825,472
$ 764,700 $ (2,230,500)
158
(361,402)
4,123,089
$ 3,761,687
CITY OF ROSEMEAD
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Air Quality Management District
For the Year Ended June 30, 2024
REVENUES
Intergovernmental
Use of money and property
Total revenues
EXPENDITURES
Current:
Public works
Debt service:
Principal retirement
Total expenditures
Net change in fund balance
Fund balance -beginning
Fund balance -ending
207,700
207,700
Variance with
203,806
34,900
Final Budget
Budget Amounts
Actual
Positive
Original Final
Amounts
(Negative)
$ 70,000 $ 70,000
$ 65,726
$ (4,274)
5,000 5,000
18,456
13,456
75,000 75,000
84,182
9,182
207,700
207,700
3,894
203,806
34,900
34,900
34,774
126
242,600
242,600
38,668
203,932
$ (167,600)
1__(16 7,600
45,514
$ (194,750)
159
448,764
$ 494,278
CITY OF ROSEMEAD
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Street Lighting
For the Year Ended June 30, 2024
REVENUES
Property taxes
Intergovernmental
Use of money and property
Total revenues
EXPENDITURES
Current:
General government
Public works
Capital outlay
Total expenditures
Net change in fund balance
Fund balance -beginning
Fund balance -ending
95,000
95,000
— 95,000
Variance with
1,528,300
1,587,173 (58,873)
64,000
Final Budget
BudgetAmounts
Actual
Positive
Original
Final
Amounts
(Negative)
$ 125,000 $
125,000
$ 206,396
$ 81,396
1,257,100
1,257,100
1,250,922
(6,178)
25,000
25,000
144,783
119,783
1,407,100
1,407,100
1,602,101
195,001
95,000
95,000
— 95,000
1,528,300
1,528,300
1,587,173 (58,873)
64,000
2,881,651
169,797 2,711,854
1,687,300
4,504,951
1,756,970 2,747,981
$ (280,200) $ (3,097,851)
160
(154,869) _L_(Z,552,9801
3,654,523
$ 3,499,654
CITY OF ROSEMEAD
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Development Impact Fee Traffic
For the Year Ended June 30, 2024
REVENUES
Use of money and property
Developer contributions
Total revenues
EXPENDITURES
Capital outlay
Total expenditures
Net change in fund balance
Fund balance -beginning
Fund balance -ending
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
$ 400 $ 400 $ 6,700 $ 6,300
15,000 15,000 49,240 34,240
15,400 15,400 55,940 40,540
— 50,000 — 50,000
50,000 — 50,000
$ 15,400 $ (34,600)
161
55,940$ (9,460)
129,670
$ 185,610
CITY OF ROSEMEAD
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Development Impact Fee Public Safety
For the Year Ended June 30, 2024
REVENUES
Use of money and property
Developer contributions
Total revenues
EXPENDITURES
Current:
Public safety
Capital outlay
Total expenditures
Net change in fund balance
Fund balance -beginning
Fund balance -ending
Budget Amounts
Original Final
Variance with
Final Budget
Actual Positive
Amounts (Negative)
$ 100 $
100 $
975 $
875
5,000
5,000
7,152
2,152
5,100
5,100
8,127
3,027
— 3,260 (3,260)
— 10,000 — 10,000
10,000 3,260 6,740
$ 5,100 $(4,900)
162
4,867 $ (3,713)
19,892
$ 24,759
CITY OF ROSEMEAD
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Development Impact Fee General Govt
For the Year Ended June 30, 2024
REVENUES
Use of money and property
Developer contributions
Total revenues
EXPENDITURES
Current:
Public works
Capital outlay
Total expenditures
Net change in fund balance
Fund balance -beginning
Fund balance -ending
Budget Amounts
Original Final
Variance with
Final Budget
Actual Positive
Amounts (Negative)
$ 500 $
500 $
7,008 $
6,508
15,000
15,000
49,953
34,953
15,500
15,500
56,961
41,461
— — 22,431 (22,431)
75,000 — 75,000
75,000 22,431 52,569
$ 15,500 -L--L59,5001
163
34,530 $ (11,108)
139,715
$ 174,245
CITY OF ROSEMEAD
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Development Impact Fee Parks
For the Year Ended June 30, 2024
REVENUES
Use of money and property
Developer contributions
Total revenues
EXPENDITURES
Capital outlay
Total expenditures
Net change in fund balance
Fund balance -beginning
Fund balance -ending
Budget Amounts
Original Final
Variance with
Final Budget
Actual Positive
Amounts (Negative)
$ 2,000 $
2,000 $
20,604 $
18,604
60,000
60,000
212,932
152,932
62,000
62,000
233,536
171,536
75,000 — 75,000
75,000 — 75,000
$ 62,000 $ (13,000)
164
233,536 $ 96,536
$ 593,672
CITY OF ROSEMEAD
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Community Development Block Grant
For the Year Ended June 30, 2024
REVENUES
Intergovernmental
Charges for services
Total revenues
EXPENDITURES
Current:
General government
Community development
Parks and recreation
Public works
Capital outlay
Total expenditures
Net change in fund balance
Fund balance -beginning
Fund balance -ending
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
$ 1,431,600 $ 1,431,600 $ 1,648,398 $ 216,798
— — 6,369 6,369
1,431,600 1,431,600 1,654,767 223,167
12,100
12,100
2,461
9,639
1,078,800
1,078,800
954,559
124,241
51,000
51,000
27,060
23,940
—
730,467
442,007
288,460
289,667
—
288,460
(288,460)
1,431,567
1,872,367
1,714,547
157,820
$ 33 $ (440,767)
165
(59,780) $ 65,347
1,468
$ (58,312)
CITY OF ROSEMEAD
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
HOME Fund
For the Year Ended June 30, 2024
REVENUES
Intergovernmental
Use of money and property
Total revenues
EXPENDITURES
Current:
Community development
Total expenditures
Net change in fund balance
Fund balance -beginning
Fund balance -ending
2,743,700 2,743,700 504,388 2,239,312
2,743,700 2,743,700 504,388 2,239,312
166
107,282
4,072,679
$ 4,179,961
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original Final
Amounts
(Negative)
$ 2,743,700 $ 2,743,700
$ 574,387
$ (2,169,313)
— —
37,283
37,283
2,743,700 2,743,700
611,670
(2,132,030)
2,743,700 2,743,700 504,388 2,239,312
2,743,700 2,743,700 504,388 2,239,312
166
107,282
4,072,679
$ 4,179,961
CITY OF ROSEMEAD
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
HDC Senior Housing
For the Year Ended June 30, 2024
REVENUES
Intergovernmental
Charges for services
Use of money and property
Miscellaneous
Total revenues
EXPENDITURES
Current:
Community development
Total expenditures
Net change in fund balance
Fund balance -beginning
Fund balance -ending
Budget Amounts
Original Final
Variance with
Final Budget
Actual Positive
Amounts (Negative)
$ 437,800 $
437,800 $
550,267 $
112,467
489,600
489,600
485,969
(3,631)
3,100
3,100
9,611
6,511
4,600
4,600
5,022
422
935,100
935,100
1,050,869
115,769
868,400 868,400 1,044,112 (175,712)
868,400 868,400 1,044,112 (175,712)
$ 66,700 $ 66,700
167
6,757 $ 291,481
452,876
$ 459,633
CITY OF ROSEMEAD
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Road Maintenance and Rehabilitation Account
For the Year Ended June 30, 2024
REVENUES
Intergovernmental
Use of money and property
Total revenues
EXPENDITURES
Current:
Public works
Capital outlay
Total expenditures
Net change in fund balance
Fund balance -beginning
Fund balance -ending
50,000 50,000
47,456
Variance with
— 3,599,897
1,752,932
Final Budget
Budget Amounts
Actual
Positive
Original Final
Amounts
(Negative)
$ 1,263,700 $ 1,263,700
$ 1,319,231
$ 55,531
10,000 10,000
171,131
161,131
1,273,700 1,273,700
1,490,362
216,662
50,000 50,000
47,456
2,544
— 3,599,897
1,752,932
1,846,965
50,000 3,649,897
1,800,388
1,849,509
$ 1,223,700 $(2,376,197)
168
(310,026) $(1,632,847)
4,024,197
$ 3,714,171
CITY OF ROSEMEAD
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Clean Water Fund
For the Year Ended June 30, 2024
REVENUES
Intergovernmental
Use of money and property
Total revenues
EXPENDITURES
Current:
General government
Public works
Capital outlay
Total expenditures
Net change in fund balance
Fund balance -beginning
Fund balance -ending
Budget Amounts
Original Final
Variance with
Final Budget
Actual Positive
Amounts (Negative)
$ 570,000 $
570,000 $
571,026 $
1,026
2,500
2,500
32,208
29,708
572,500
572,500
603,234
30,734
2,500
2,500 -
2,500
125,000
325,000 257,957
67,043
150,000
210,000 6,410
203,590
277,500
537,500 264,367
273,133
$ 295,000 $ 35,000
169
338,867
821,410
$ 1,160,277
CITY OF ROSEMEAD
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Continued)
SB1383
For the Year Ended June 30, 2024
REVENUES
Intergovernmental
Use of money and property
Total revenues
EXPENDITURES
Current:
Public works
Total expenditures
Net change in fund balance
Fund balance -beginning
Fund balance -ending
Budget Amounts
Original Final
Variance with
Final Budget
Actual Positive
Amounts (Negative)
$ — $ 265,000 $ 265,000 $ -
- 10,748 10,748
265,000 275,748 10,748
181,100 62,879 118,221
181,100 62,879 118,221
$ — $ 83,900
170
212,869 $ (107,473)
$ 212,869
CITY OF ROSEMEAD
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Continued)
Measure R Capital Projects
For the Year Ended June 30, 2024
REVENUES
Intergovernmental
Total revenues
EXPENDITURES
Capital outlay
Total expenditures
Net change in fund balance
Fund balance -beginning
Fund balance -ending
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
$ — $ — $ 7,254 $ 7,254
7,254 7,254
— 26,707,826 146,380 26,561,446
— 26,707,826 146,380 26,561,446
$ — $ (26,707,826)
171
(139,126) _L(26,554,192)
(99,073)
$ (238,199)
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WIN
Internal Service Funds
173
ludal'ti SmaII To%%n Anmrir a
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174
CITY OF ROSEMEAD
Combining Statement of Net Position
Internal Service Funds
June 30, 2024
Noncurrent:
Capital Assets, Net — 52,182 2,562 54,744
Total noncurrent assets — 52,182 2,562 54,744
Total assets 2,162,380 1,173,524 9,343,934 12,679,838
LIABILITIES
Current liabilities:
Accounts payable — — 7,162 7,162
Total current liabilities — — 7,162 7,162
Total liabilities — — 7,162 7,162,
NET POSITION
Invested in capital assets — 52,182 2,562 54,744
Unrestricted 2,162,380 1,121,342 9,334,210 12,617,932
Total net position $ 2,162,380 $ 1,173,524 $ 9,336,772 $ 122672,676
fivbi
Total Internal
Equipment
Technology
Public
Service
Replacement
Replacement
Facilities
Funds
ASSETS
Current assets:
Cash and investments
$ 2,147,145
$ 1,116,104
$ 9,274,082
$ 12,537,331
Receivables (net of uncollectibles):
Accrued interest
15,235
5,238
67,290
87,763
Total current assets
2,162,380
1,121,342
9,341,372
12,625,094
Noncurrent:
Capital Assets, Net — 52,182 2,562 54,744
Total noncurrent assets — 52,182 2,562 54,744
Total assets 2,162,380 1,173,524 9,343,934 12,679,838
LIABILITIES
Current liabilities:
Accounts payable — — 7,162 7,162
Total current liabilities — — 7,162 7,162
Total liabilities — — 7,162 7,162,
NET POSITION
Invested in capital assets — 52,182 2,562 54,744
Unrestricted 2,162,380 1,121,342 9,334,210 12,617,932
Total net position $ 2,162,380 $ 1,173,524 $ 9,336,772 $ 122672,676
fivbi
loth%'s Small Town Anmrii i
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176
CITY OF ROSEMEAD
Statement of Revenues, Expenses and Changes in Net Position
Internal Service Funds
For the Year Ended June 30, 2024
OPERATING EXPENSES
Contractual services
Depreciation
Total operating expenses
Operating loss
Equipment Technology
Replacement Replacement
Total Internal
Public Service
Facilities Funds
$ — $ 27,721 $ 9,040 $ 36,761
9,224 — 9,224
— 36,945 9,040 45,985
(36,945) (9,040) (45,985)
NONOPERATING REVENUES
(EXPENSES)
Gains (losses) on sale of capital asset 526 — — 526
Use of money and property 73,904 26,706 345,812 446,422
Total nonoperating revenues (expenses) 74,430 26,706 345,812 446,948
Income (loss) before transfers 74,430 (10,239) 336,772 400,963
Transfers in 500,000 550,000 2,000,000 3,050,000
Change in net position 574,430 539,761 2,336,772 3,450,963
Net position -beginning 1,587,950 633,763 7,000,000 9,221,713
Net position -ending $ 2,162,380 $ 11173,524 $ 9,3361772 _L 12,672,676
177
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178
CITY OF ROSEMEAD
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2024
CASH FLOWS FROM OPERATING ACTIVITIES
Payments to suppliers and service providers
Net cash provided by (used for)
operating activities
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers to other funds
Net cash provided by (used for)
noncapital financing activities
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition and construction of capital assets
Proceeds from sales of assets
Net cash provided by (used for)
capital and related financing activities
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments
Net cash provided by (used for)
investing activities
Net increase (decrease)in
cash and cash equivalents
Cash and cash equivalents -beginning
Cash and cash equivalents ending
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED BY (USED FOR)
OPERATING ACTIVITIES
Operating income (loss)
Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities:
Depreciation/amortization expense
Increase (decrease) in accounts payable
Total adjustments
Net cash provided by (used for)
operating activities
Equipment Technology Public
Replacement Replacement Facilities Totals
$ — $ (26,731) $ (1,878) $ (28,609)
(26,731) (1,878) (28,609)
500,000 550,000 2,000,000 3,050,000
500,000 550,000 2,000,000 3,050,000
526
526
(2,562) (2,562)
526
— (2,562) (2,036)
63,028 22,085 278,522 363,635
63,028 22,085 278,522 363,635
563,554 545,354 2,274,082 3,382,990
1,583,591 570,750 7,000,000 9,154,341
$ 2,147,145 $ 1,116,104 $ 9,274,082 $ 12,537,331
$ — $ (36,945) $ (9,040) $ (45,985)
9,224 — 9,224
990 7,162 8,152
10,214 7,162 17,376
$ — $ (26,731) $(1,878) $ (28,609)
179
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180
STATISTICAL SECTION
Financial Trends
Revenue Capacity
Debt Capacity
Demographic and Economic Information
Operating Information
loday's Small Town America
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182
CITY OF ROSEMEAD
DESCRIPTION OF STATISTICAL SECTION CONTENTS
June 30, 2024
This part of the City's annual comprehensive financial report presents detailed information as a context for
understanding what the information in the financial statements and the note disclosures say about the
government's overall financial health.
Contents:
Pages:
Financial Trends: These schedules contain trend information to help the reader understand how
the City's financial performance and well being have changed over time . 185 - 193
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 information to help the reader assess the City's
most significant local revenue source, the property tax 195 - 199
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 present information to help the reader assess the affordability of
the City's current levels of outstanding debt and the City's ability to issue additional debt in the
future . .. ... .... .... .. ... .. .. ....... .. .... 201 - 205
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 City's financial
activities take place .. 207 - 211
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 City's financial report relates to the services the City
provides and the activities it performs 213 - 215
16 Operating Indicators by Function
17 Capital Asset Statistics
Sources: Unless otherwise noted, the information in these schedules is derived from the Annual Comprehensive
Financial Reports for the relevant year.
183
loday's Small Town America
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184
Financial Trends
185
City ojRosemead
Financial Trends
Net Position by Component
Last Ten Fiscal Years
(accrual basis accounting) Schedule 1
Total governmental activities net position $124,601,682 $114,474,213 $ 94,433,436 $ 87,944,050 $ 80,261,474
Note: The City implemented GASB 75 in the FY 2018. Prior Year information was not restated to reflect the impact of the
implementation.
Unless otherwise Noted, the Source for Statistical Information is the City of Rosemead, Department of Finance
186
Fiscal Year
2024
2023
2022
2021
2020
Governmental Activities
Net investment in capital assets
$ 53,652,795
$ 49,863,061
$ 47,464,095
$ 47,444,803
$ 48,825,863
Restricted
31,657,170
29,695,512
24,948,999
21,872,1 B4
13,681,082
Unrestricted (deficit)
39,291,717
34,915,640
22,020,342
18,627,063
17,754,529
Total governmental activities net position $124,601,682 $114,474,213 $ 94,433,436 $ 87,944,050 $ 80,261,474
Note: The City implemented GASB 75 in the FY 2018. Prior Year information was not restated to reflect the impact of the
implementation.
Unless otherwise Noted, the Source for Statistical Information is the City of Rosemead, Department of Finance
186
City of Rosemead
Financial Trends
Net Position by Component (Continued)
Last Ten Fiscal Years
(accrual basis accounting) Schedule 7
Total governmental activities net position $ 78,096,176 $ 74,353,464 $ 72,883,969 $ 68,656,751 $ 66,475,650
Note: The City implemented GASB 75 in the FY 2018. Prior Year information was not restated to reflect the impact of the
implementation.
Unless otherwise Noted, the Source for Statistical Information is the City of Rosemead, Department of Finance
187
Fiscal Year
2019
2018
2017
2016
2015
Governmental Activities
Net investment in capital assets
$ 50,882,552
$ 53,587,243
$ 52,806,193
$ 51,542,030
$ 52,038,429
Restricted
9,730,202
3,554,634
4,387,055
4,005,847
3,419,068
Unrestricted (deficit)
17,483,422
17,211,587
15,690,721
13,108,874
11,018,153
Total governmental activities net position $ 78,096,176 $ 74,353,464 $ 72,883,969 $ 68,656,751 $ 66,475,650
Note: The City implemented GASB 75 in the FY 2018. Prior Year information was not restated to reflect the impact of the
implementation.
Unless otherwise Noted, the Source for Statistical Information is the City of Rosemead, Department of Finance
187
City of Rosemead
Financial Trends
Changes in Net Position
Last Ten Fiscal Years
(accrual basis accounting) Schedule 2
Expenses:
Governmental activities
General Government
Public Safety
Public Works
Parks & Recreation
Community Development
Interest on long -term debt
Total Governmental activities expenses
Program Revenues:
Governmental activities
Charges for Services
General Government
Public Safety
Public Works
Parks & Recreation
Community Development
Operating grants and contributions
Capital grants and contributions
Total governmental activities program revenues
Net (expense)/revenue
Total Primary government net expense
Fiscal Year
2024 2023 2022 2021 2020
$ 5,613,800 $ 4,916,281 $ 5,285,495 $ 4,659,583 $ 4,003,674
12,935,463
10,824,136
10,975,401
10,679,425
9,744,134
12,197,341
10,471,184
9,374,004
9,372,263
9,946,662
4,314,376
3,679,872
3,139,695
3,411,076
3,472,477
5,000,935
3,444,775
2,560,821
1,916,949
2,920,016
3,735
32,275
46,540
—
—
$ 40,065,650
$ 33,368,523
$ 31,381,956
$ 30,039,296
$ 30,086,963
$ 350,078
$360,764
$381,537
$357,513
$274,450
748,860
726,754
693,947
643,020
686,871
3,492,116
3,695,897
3,421,588
2,781,446
2,746,472
982,308
924,014
503,128
163,168
624,313
3,336,464
4,695,490
3,294,809
2,634,298
2,459,528
11,915,536
15,398,364
5,550,126
6,590,283
4,536,459
2,133,127
1,996,455
1,877,695
1,780,851
1,217,584
22,958,489
27,797,738
15,722,830
14,950,579
12,545,677
(17,107,161)(5,5 70,785) (15,659,126) (15,088,717) (17,541,286)
General Revenues and other changes in net position
Governmental activities
Taxes
Property taxes
12,233,339
11,750,041
10,881,809
10,740,563
9,942,183
Sales taxes
6,999,889
7,369,300
6,889,892
5,534,244
5,430,222
Transient Occupancy
2,238,353
2,312,408
2,097,700
1,405,397
1,785,219
Other taxes
1,953,619
1,802,904
1,594,759
1,378,550
1,346,327
Investment income
3,793,154
2,110,332
596,871
287,628
945,319
Other general revenues
16,276
266,577
99,978
40,151
257,314
Total governmental activities
27,234,630
25,611,562
22,161,009
19,386,533
19,706,584
Change in Net Position
Total primary government 10,127,469 20,040,777 6,501,883 4,297,817 2,165,298
Unless otherwise Noted, the Source for Statistical Information is the City of Rosemead, Department of Finance
188
City of Rosemead
Financial Trends
Changes in Net Position (Continued)
Last Ten Fiscal Years
(accrual basis accounting) Schedule 2
Expenses:
Governmental activities
General Government
Public Safety
Public Works
Parks & Recreation
Community Development
Interest on long -term debt
Total Governmental activities expenses
Program Revenues:
Governmental activities
Charges for Services
General Government
Public Safety
Public Works
Parks & Recreation
Community Development
Operating grants and contributions
Capital grants and contributions
Total governmental activities program revenues
Net (expense)/revenue
Total Primary government net expense
Fiscal Year
2019 2018 2017 2016 2015
$ 4,205,482 $ 4,554,063 $ 3,705,685 $ 3,218,363 $ 2,739,281
9,125,853
9,499,683
8,935,164
8,381,588
7,747,949
6,353,025
9,554,073
7,323,865
8,738,495
8,703,817
2,376,713
3,409,699
3,161,310
3,246,081
2,879,028
7,662,344
2,746,482
2,153,986
2,073,145
2,049,540
—
3,328,451
—
787
3,198
$ 29,723,417
$ 29,764,000
$ 25,280,010
$ 25,658,459
$ 24,122,813
$422,329
$328,824
$211,217
$168,194
$777,667
701,520
685,191
560.787
590,533
627,027
2,987,193
2,693,222
648,141
617,375
575,494
958,176
828,038
788,931
741,171
713,484
2,827,811
3,328,451
2,437,458
2,282,580
1,847,885
4,122,174
4,821,892
5,635,721
5,848,129
6,067,133
1,217,759
1,172,424
1,019,216
973,119
946,505
13, 236, 962
13 858, 042
11, 301, 471
11, 221,101
11, 555.195
$(16,486,455) $(15,905,958) $(13,978,539) $(14,437,358) $(12,Sfi7,618)
General Revenues and other changes in net position
Governmental activities
Taxes
Property taxes
9,566,800
9,128,934
8,643,019
9,158,499
9,034,141
Sales taxes
5,735,491
5,929,492
5,366,975
4,124,745
3,452,605
Transient Occupancy
2,314,723
2,326,863
2,213,286
1,998,954
1,575,401
Other taxes
1,329,822
1,313,699
1,224,230
1,209,249
1,247,941
Investment income
1,158,407
210,288
20,526
348,651
97,589
Other general revenues
123,924
647,888
737,721
945,372
793,680
Total governmental activities
20,229,167
19,557,164
18,205,757
17,785,470
16,201,357
Change in Net Position
Total primary government $ 3,742,713 $ 3,651,206 $ 4,227,218 $ 3,348,112 $ 3,633,739
Unless otherwise Noted, the Source for Statistical Information is the City of Rosemead, Department of Finance
189
City of Rosemead
Financial Trends
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis accounting) Schedule 3
General Fund
Nonspendable
Restricted
Committed
Assigned
Unassigned (deficit)
Total general fund
All other governmental funds
Nonspendable
Restricted
Committed
Assigned
Unassigned (deficit)
Total all other governmental funds
Fiscal Year
2024 2023 2022 2021 2020
$ 340,001 $ 351,821 $ 411,571 $ 118,358 $ 510,371
12,647,428 15,000,933 10,169,989 7,985,332 8,896,317
132,948 132,948 132,367 130,267 121,867
21,345,526 16,944,731 17,842,339 17,353,655 14,679,926
$ 34,465,903 $ 32,430,433 $ 28,556,266 $ 25,587,612 $ 24,208,481
$ 24,150 $ — $ — $ — $ —
31,117,246 29,369,133 24,948,999 21,872,184 13,681,082
(378,567) (1,511,092) (110,157) (89,573) (269,560)
$ 30,762,829 $ 27,858,041 $ 24,838,842 $ 21,782,611 $ 13,411,522
Unless otherwise Noted, the Source for Statistical Information is the City of Rosemead, Department of Finance
190
City of Rosemead
Financial Trends
Fund Balances of Governmental Funds (Continued)
Last Ten Fiscal Years
(modified accrual basis accounting) Schedule 3
General Fund
Nonspendable
Restricted
Committed
Assigned
Unassigned (deficit)
Total general fund
All other governmental funds
Nonspendable
Restricted
Committed
Assigned
Unassigned (deficit)
Total all other governmental funds
Fiscal Year
2019 2018 2017 2016 2015
$ 870,619
$ 853,920
$ 765,218
$ 187,247
$ 143,560
7,667,401
8,760,289
6,935,525
6,682,495
6,120,361
121,867
79,798
63,298
83,513
78,280
14,635,070
10,790,274
11,270,958
11,514,894
10,128,160
$ 23,294,957
$ 20,484,281
$ 19,034,999
$ 18,468,149
$ 16,470,361
8,797,389 3,554,634 4,376,257 4,005,847 3,419,068
932,813 1,912,732 — — —
(23,792) (31,024) (639,510) (832,005) (1,643,527)
$ 9,706,410 $ 5,436,342 $ 3,736,747 $ 3,173,842 $ 1,775,541
Unless otherwise Noted, the Source for Statistical Information is the City of Rosemead, Department of Finance
191
City of Rosemead
Financial Trends
Changes in Fund Balances of Government Funds
Last Ten Fiscal Years
(modified accrual basis accounting) Schedule 4
Revenues
Taxes
Intergovernmental
Licenses and permits
Charges for services
Fines, forfeitures, and penalties
Development participation
Investment income
Other
Total Revenues
Expenditures
General government
Public safety
Public works
Community development
Parks and recreation
Capital Outlay
Debt Service
Principal
Interest and fiscal charges
Total Expenditures
Excess of revenues oved(under)
expenditures
Other financing sources (uses)
Transfer in
Transfer out
Total Other Financing Sources
Net Change in fund balances
Debt service as a percentage of non -
capital expenditures
Fiscal Year
2024 2023 2022 2021 2020
$ 23,425,200 $ 23,234,653 $ 21,470,510 $ 19,082,069 $ 18,503,951
17,883,375
19,318,247
10,582,249
11,041,044
8,179,055
3,594,146
4,514,893
3,332,016
2,492,893
2,115,419
1,745,191
1,625,895
1,247,997
489,269
1,204,638
604,725
594,978
577,616
598,032
612,080
319,277
350,618
114,662
78,558
150,728
3,155,753
1,883,246
369,785
778,295
905,039
37,550
266,577
84,050
63,684
271,515
50,765,217
51,789,107
37,778,885
34,623,844
31,942,425
5,322,096
5,067,987
5,477,022
4,587,158
3,768,562
12,723,236
10,922,252
10,978,236
10,574,620
9,577,867
9,411,015
7,586,361
7,512,480
7,098,823
7,032,609
4,683,247
3,725,789
3,147,029
3,349,209
3,352,332
3,981,220
3,356,826
2,427,999
1,706,997
2,703,857
6,510,995
5,657,289
2,389,245
941,577
888,559
139,415 76,457 — — —
3,735 2,780 — — —
42,774,959 36,395,741 31,932,011 28,258,384 27,323,786
7,990,258 15,393,366 5,846,874 6,365,460 4,618,639
1,800,000 7,398,300 — — —
(4,850,000) (15,898,300) 178,011 — —
(3,050,000) (8,500,000) 178,011 — —
$ 4,940,258 $ 6,893,366 $ 6,024,885 $ 6,365,460 $ 4,618,639
0.4% 0.2% -% -% -%
Unless otherwise Noted, the Source for Statistical Information is the City of Rosemead, Department of Finance
192
City of Rosemead
Financial Trends
Changes in Fund Balances of Government Funds (Continued)
Last Ten Fiscal Years
(modified accrual basis accounting) Schedule 4
Revenues
Taxes
Intergovernmental
Licenses and permits
Charges for services
Fines, forfeitures, and penalties
Development participation
Investment income
Other
Total Revenues
Expenditures
General government
Public safety
Public works
Community development
Parks and recreation
Capital Outlay
Debt Service
Principal
Interest and fiscal charges
Total Expenditures
Excess of revenues oved(under)
expenditures
Other financing sources (uses)
Transfer in
Transfer out
Total Other Financing Sources
Net Change in fund balances
Debt service as a percentage of non -
capital expenditures
Fiscal Year
2019 2018 2017 2016 2015
$ 18,946,836 $ 18,698,988 $ 17,447,510 $ 16,491,447 $ 15,537,262
8,588,211
8,002,636
6,726,279
7,734,995
7,092,141
2,636,026
3,128,000
2,754,881
2,520,937
1,846,997
1,653,095
1,572,266
1,012,557
1,191,275
1,138,731
622,221
633,711
607,754
597,373
676,830
117,115
28,591
—
—
—
1,158,407
210,288
666,968
1,002,835
754,865
250,364
566,338
231,545
71,152
114,074
33,972,275
32,840,818
29,447,494
29,610,014
27,160,900
4,077,516
4,546,789
4,280,825
3,664,633
3,879,122
9,089,645
9,318,858
9,060,840
8,452,932
8,156,485
7,247,391
6,554,648
6,499,220
6,346,179
6,348,101
3,637,692
3,279,088
3,385,455
3,323,933
3,150,240
2,343,452
2,386,463
2,300,906
2,123,274
2,071,443
495,838
3,606,095
2,790,493
2,302,974
4,924,435
26,891,534 29,691,941 28,317,739 26,213,925 28,529,826
7,080,741 3,148,877 1,129,755 3,396,089 (1,368,926)
— 121,361
2,442,441
1,386,471
2,433,974
— (121,361)
(2,442,441)
(1,386,471)
(2,433,974)
$ 7,080,741 $ 3,148,877 $
1,129,755 $
3,396,089
$ (1,368,926)
-% -% -% -% -%
Unless otherwise Noted, the Source for Statistical Information is the City of Rosemead, Department of Finance
193
THIS PAGE INTENTIONALLY LEFT BLANK
194
Revenue Capacity Information
195
City of Rosemead
Revenue Capacity
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
Schedule 5
Total
SBE Non- Taxable Assessed Direct Tax
Fiscal Year Secured Unsecured Unitary Value Rate
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
5,232,291,677
9.28%
2024
5,738,322,545
82,881,050
2,408,307
5,823,611,902
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 reassessed 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
Unless otherwise Noted, the Source for Statistical Information is the City of Rosemead, Department of Finance
196
City of Rosemead
Revenue Capacity
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
(Rate per $100 of Taxable Value) Schedule 6
Agency
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
Basic Levy
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
EI Monte City School District
0.0885
0.0907
0.0799
0.0751
0.1080
0.1458
0.1462
0.1468
0.1464
0.1182
EI Monte Union High School
0.0691
0.0675
0.0765
0.0929
0.1097
0.0879
0.0824
0.0847
0.0916
0.0842
Garvey School District
0.0869
0.0857
0.0884
0.0843
0.0862
0.0871
0.0833
0.0607
0.0587
0.0595
Garvey -Alhambra
0.0296
0.0299
0.0299
0.0381
0.0366
0.0454
0.0481
0.0281
0.0291
0.0291
Los Angeles Community College
District
0.0602
0.0249
0.0438
0.0402
0.0272
0.0462
0.0460
0.0360
0.0358
0.0402
Metropolitan Water District
0.0300
0.0300
0.0300
0.0300
0.0300
0.0300
0.0300
0.0230
0.0180
0.0180
Montebello Unified School District
0.1128
0.1277
0.0903
0.0971
0.0931
0.1392
0.1351
0.1471
0.0872
0.0875
Pasadena Community College
District
0.0251
0.0087
0.0090
0.0055
0.0072
0.0077
0.0082
0.0089
0.0087
0.0103
Rio Hondo Community College
District
0.0218
0.0154
0.0153
0.0136
0.0257
0.0255
0.0275
0.0281
0.0271
0.0282
Rosemead School District
0.1008
0.0987
0.1018
0.0746
0.0868
0.0926
0.1198
0.0853
0.1000
0.0989
San Gabriel Unified School District
0.0990
0.1027
0.1019
0.0986
0.0968
0.1056
0.1008
0.1053
0.1068
0.1144
Total Direct & Overlapping' Tax
Rates
1.7236
1.6817
1.6662
1.6500
1.7073
1.8130
1.8273
1.7539
1.7093
1.6885
City's Share of 1% Levy Per Prop 13
0.0939
0.0928
0.0939
0.0939
0.0939
0.0939
0.0939
0.0939
0.0939
0.0939
Voter Approved City Debt Rate
Redevelopment Rate 4 - - - - - - - - - -
Total Direct Rate 5 0.0928 0.0928 0.0928 0.0928 0.0928 0.0928 0.0927 0.0927 0.0927 0.0927
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.
'Overlapping rates are those of local and county governments that apply to property owners within the City. Not all
overlapping rates apply to all city property owners.
'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.
4RDA 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.
5Total 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 2014115 - 2023/24 Combined Tax Rolls and HDL Coren & Cone
Unless otherwise Noted, the Source for Statistical Information is the City of Rosemead, Department of Finance
197
City of Rosemead
Revenue Capacity
Principal Property Taxpayers
Current Year and Nine Years Ago
Schedule 7
Source: Los Angeles County Assessor Combined Tax Rolls and SBE Non UnitaryTax Roll for 2014/15 and 2023/24 and HDL
Coren & Cone
Unless otherwise Noted, the Source for Statistical Information is the City of Rosemead, Department of Finance
198
2024
2015
Percentage
Percentage
of Total
of Total
Taxable
Assessed
Assessed
Taxpayer
Assessed Value
Rank
Valuation
Assessed Value
Rank
Valuation
Rosemead Place, LLC
$55,726,370
1
0.96%
$48,702,092
1
1.27%
Walmart Real Estate Business Trust
40,515,704
2
0.70%
34,386,000
2
0.89%
Rosemead Hwang LLC
39,858,813
3
0.68%
31,039,000
3
0.80%
AFG Investment Fund 5 LLC
29,618,578
4
0.51%
25,137,546
4
0.65%
Golden State Water Company
25,643,098
5
0.44%
—
°k
West Meadow Health Holdings LLC
24,318,307
6
- 0.42%
—
—
—°k
Sunshine Inn
22,556,478
7
0.39%
12,846,829
10
0.33%
Metodo Investments LLC
21,202,238
8
0.36%
18,953,835
5
0.49%
420 Boyd Street LLC
20,934,275
9
0.36%
17,000,000
6
0.44%
Garvey Garden Plaza LLC
20,813,225
10
0.36%
—
—
—%
Citadel Panda Exoress Inc
—
-%
9,524,072
7
0.25%
Macy's California Inc
—
-%
14,286,094
8
0.37%
Shud and Kay Curci Foundation Lessor
—
-%
14,095,143
9
0.36%
Source: Los Angeles County Assessor Combined Tax Rolls and SBE Non UnitaryTax Roll for 2014/15 and 2023/24 and HDL
Coren & Cone
Unless otherwise Noted, the Source for Statistical Information is the City of Rosemead, Department of Finance
198
City of Rosemead
Revenue Capacity
Property Tax Levies and Collections
Last Ten Fiscal Years
Collected within the Fiscal Year
of the Levy Collections in
Schedule 8
Total Collections to Date
Total Tax Levy
Fiscal Year for Fiscal Percentage of Subsequent Percent of
ended June 30 Year' Amount Levy Years* Amount Levy
2015
2,981,810
2,935,129
98.43%
— 2,935,129
98.43%'
2016
3,134,303
3,114,233
99.36%
— 3,114,233
99.36%
2017
3,187,187
2,632,109
82.58%
— 2,632,109
82.58%
2018
3,336,547
2,878,054
86.26%
— 2,878,054
86.26%
2019
3,489,499
3,008,322
86.21%
— 3,008,322
86.21%
2020
3,675,962
3,064,430
83.36%
— 3,064,430
83.36%
2021
3,847,941
2,812,253
73.08%
— 2,812,253
73.08%
2022
3,928,815
2,862,513
72.86%
— 2,862,513
72.86%
2023
4,099,167
3,091,286
75.41%
— 3,091,286
75.41%
2024
4,364,867
3,123,547
71.56%
— 3,123,547
71.56%
' Information not available.
Source: Los Angeles County Auditor Controller's Office
Unless otherwise Noted, the Source for Statistical Information is the City of Rosemead, Department of Finance
199
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200
Debt Capacity Information
201
City of Rosemead
Debt Capacity
Direct and Overlapping Debt
As of June 30, 2024
City Assessed Valuation
Direct and Overiaooina Tax and Assessment Debt
Metropolitan Water District
Los Angeles Community College Distict
Pasadena Area Community College District
Alhambra Unified School District
EI Monte Union High School District
Garvey School District
Rosemead School District
Total Direct and Overlapping Tax and Assessment
Debt
Overlapiinng General Fund Debt
Los Angeles County General Fund Obligations
Los Angeles County Superintendent of School
Certificates of Participation
Pasadena Area Community College District
Certificates of Participation
Montebello Unified School District Certificates of
Participation
EI Monte Union High School District General Fund
Obligations
Total Overlapping General Fund Obligation Debt
Overlapping Tax Increment Debt (Successor Agency)
Subtotal Overlapping Debt
City of Rosemead Direct Debt
Total Direct and Overlapping Debt
$5,823,611,902
Total Debt
$18,210,000
5,155,845,000
174,690,000
138,279,695
258,981,162
54,598,496
52,670,000
$2,479,229,730
2,857,300
28,785,000
3,910,000
9,645,000
15,540,000
Percentage
Applicable'
0.150%
0.278%
2.360%
11.865%
13.746%
51.241%
Schedule 9
City's Share of
Debt
$27,315
14,333,249
4,122,684
16,406,886
35,599,551
27,976,816
67.070% 35,325,769
138,092,618
0.290% $7,189,766
0.290% 8,286
2.360% 679,326
1.475% 57,673
13.746% 1,325,802
9,260,853
100% $15,540,000
(2) $162,893,471 (2)
(3) 251,738 (3)
163145209
(1) The percentage of overlapping debt applicable to the city if estimated using taxable property value. Applicable
percentages were estimated by determining the portion of the overlapping distriGrs assessed value that is within the
boundaries of the city devided 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
Source: California Municipal Statistics, Inc.
Unless otherwise Noted, the Source for Statistical Information is the City of Rosemead, Department of Finance
202
City of Rosemead
Debt Capacity
Legal Debt Margin
Last Ten Fiscal Years
Assessed valuation
Conversion percentage
Schedule 10
Fiscal Year
2024 2023 2022 2021 2020
$ 5,823,611,902 $ 5,593,810,961 $ 5,306,456,661 $ 5,175,006,979 $ 4,960,200,386
25% 25% 25% 25% 25%
Adjusted assessed valuation $ 1,455,902,976 $ 1,398,452,740 $ 1,326,614,165 $ 1,293,751,745 $ 1,240,050,097
Debt limit percentage 15% 15% 15% 15% 15%
Debt limit $ 218,385,446 $ 209,767,911 $ 198,992,125 $ 194,062,762 $ 186,007,514
Total net debt applicable to
limit:
General obligation bonds $ — $ — $ — $ — $ —
Legal debt margin $ 218,385,446 S 209,767,911 $ 198,992,125 S 194,062,762 $ 186,007,514
Total debt applicable to the limit
as percentage of debt limit
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
Unless otherwise Noted, the Source for Statistical Information is the City of Rosemead, Department of Finance
203
City of Rosemead
Debt Capacity
Legal Debt Margin (Continued)
Last Ten Fiscal Years
Assessed valuation
Conversion percentage
Schedule 10
Fiscal Year
2019 2018 2017 2016 2015
$ 4,745,176,577 $ 4,525,131,407 $ 4,337,892,775 $ 4,077,097,445 $ 3,879,248,441
25% 25% 25% 25% 25%
Adjusted assessed valuation $ 1,186,294,144 $ 1,131,282,852 $ 1,084,473,194 $ 1,019,274,361 $ 969,812,110
Debt limit percentage 15% 15% 15% 15% 15%
Debt limit $ 177,944,122 $ 169,692,428 $ 162,670,979 $ 152,891,154 $ 145,471,817
Total net debt applicable to
limit:
General obligation bonds $ — $ — $ — $ — $ —
Legal debt margin $ 177,944,122 $ 169,692,428 $ 162,670,979 S 152,891,154 $ 145,471,817
Total debt applicable to the limit
as percentage of debt limit —% —%
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 cement 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
Unless otherwise Noted, the Source for Statistical Information is the City of Rosemead, Department of Finance
204
City of Rosemead
Debt Capacity
Pledged Revenue Coverage
Last Ten Fiscal Years
Tax Allocation Bonds
Debt Service
Schedule 11
Fiscal Year
Ended June 30 Tax Increment Principal Interest Coverage
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
2024
2,513,926
2,320,000
765,500
0.81
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
Unless otherwise Noted, the Source for Statistical Information is the City of Rosemead, Department of Finance
205
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ME
Demographic and Economic Information
207
City of Rosemead
Demographic and Economic Information
Demographic and Economic Statistics
Last Ten Fiscal Years
Source: ')California State Department of Finance
�1US Census Data
3talifornia Employment Development Department
Compiled by HdL, Coren & Cone
Unless otherwise Noted, the Source for Statistical Information is the City of Rosemead, Department of Finance
208
Schedule 12
Personal
Per Capita
Income
Personal
Unemplo ment
Fiscal Year
Population (1)
(in thousands)(2)
Income
Rate)
Median Age (3)
2015
54,786
$956,180
$17,453
9.50%
39.7
2016
55,231
932,800
16,889
7.70%
40.4
2017
54,984
960,740
17,473
6.10%
40.5
2018
55,267
972,350
17,594
4.30%
40.7
2019
55,097
1,040,232
18,880
4.30%
41.5
2020
54,363
1,084,896
19,956
4.20%
41.4
2021
54,229
1,175,005
21,667
16.20%
41.9
2022
50,511
1,181,679
23,394
9.30%
41.3
2023
50,022
1,237,499
24,739
4.60%
41.8
2024
50,541
1,331,252
26,340
4.40%
43.1
Source: ')California State Department of Finance
�1US Census Data
3talifornia Employment Development Department
Compiled by HdL, Coren & Cone
Unless otherwise Noted, the Source for Statistical Information is the City of Rosemead, Department of Finance
208
City of Rosemead
Demographic and Economic Information
Principal Employers
Current Fiscal Year and Nine Years Ago
2024
2015
Number of Employment Number of Employment
Employer Name Employees Rank 1 Employees Rank 2
Southern California Edison
2,722
1
11.58%
4,100
1
17.08%
Garvey School District
867
2
3.69%
804
2
3.35%
Panda Restaurant Group, Inc.
699
3
2.97%
400
3
1.67%
Wal-Mart
594
4
2.53%
389
4
1.62%
Rosemead School District
246
5
1.05%
337
1.40%
Target
200
6
0.85%
225
0.94%
Hemetic Seal Corporation
130
7
0.55%
187
0.78%
Lucille's
100
8
0.43%
—
—%
DoubleTree
120
9
0.51%
110
0.46%
Don Bosco Tech
98
10
0.42%
90
0.38%
University of the West
82
0.35%
0
—
—%
Olive Garden
-%
112
8
0.47%
Source: City of Rosemead
1 Based upon Employment Development Department's estimate of 24,000 residents
employed - June 2014
2Based upon Employment Development Department's estimate of 23,300 residents
employed - June 2024
Unless otherwise Noted, the Source for Statistical Information is the City of Rosemead, Department of Finance
209
City of Rosemead
Demographic and Economic Information
Top 25 Sales Tax Producers
Current Year and Ten Years Ago
2024
Sales Tax Producers
Business Category
7 Eleven
Service Stations
888 Seafood
Casual Dining
Autozone
Automotive Supply Stores
Beacon Roofing Supply
Building Material
Blooming VIP Restaurant
Casual Dining
Boiling Crab
Casual Dining
Boston Lobster
Casual Dining
Carbeeco
Used Automotive Dealers
Circle K
Service Stations
Happy Lamb Hot Pot
Casual Dining
In N Out Burger
Quick -Service Restaurants
Ji Rong Peking Duck
Casual Dining
Lucille's Smokehouse BBQ
Casual Dining
Macy's
Department Store
McDonald's
Quick -Service Restaurants
McDonald's
Quick -Service Restaurants
Olive Garden
Casual Dining
Panda Express
Fast -Casual Restaurants
Rosemead Valley Mart -Mobil
Service Stations
Ross
Family Apparel
Shell
Service Stations
Sunshine Seafood
Casual Dining
Target
Discount Dept Store
Ulta Beauty
Specialty Stores
Wlamart Supercenter
Discount Dept Store
Schedule 14
Sales Tax Producers
Business Category
7 Eleven
Service Stations
888 Seafood
Casual Dining
Autozone
Automotive Supply Stores
Bed Bath & Beyond
Home Furnishings
CH Auto
Used Automotive Dealers
Circle K
Service Stations
Dunn Edwards Paint
Paint/Glass/Wallpaper
East Gourmet Seafood
Casual Dining
HJ Auto Group
Used Automotive Dealers
In N Out Burger
Quick -Service Restaurants
JBL Pipe & Supply
Plumbing/Electrical Supplies
Macys
Department Stores
Mc Donalds
Quick -Service Restaurants
Mc Donalds
Quick -Service Restaurants
Olive Garden
Casual Dining
Panda Express
Fast -Casual Restaurants
Rosemead Mobil
Service Stations
Rosemead Valley Mart Mobil
Service Stations
Sea Harbour Seafood
Casual Dining
Shell
Service Stations
T Mobile
Electronics/Appliance Stores
Target
Discount Dept Stores
TGI Fridays
Casual Dining
USA Gasoline
Service Stations
Walmart Supercenter
Discount Dept Store
Unless otherwise Noted, the Source for Statistical Information is the City of Rosemead, Department of Finance
210
City of Rosemead
Demographic and Economic Information
Full -Time Equivalent City Government Employees by Function/Program
Last Ten Fiscal Years
Schedule 15
Fiscal Year
Function/Program 2024 2023
2022
2021
2020 2019
2018
2017
2016
2015
Governmental Activities
General Government 22 19
19
15
14
13
12
12
12
11
Public Safety' 7 6
8
8
3
3
7
7
6
6
Community development 8 7
5
6
11
10
7
7
7
6
Public Works 28 25
21
21
23
23
21
20
20
20
Parks and recreation 9 9
8
8
9
8
9
9
8
10
TOTAL 74 66
61
58
60
57
56
55
53
53
Note:
'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
Unless otherwise Noted, the Source for Statistical Information is the City of Rosemead, Department of Finance
211
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212
Operating Information
213
City of Rosemead
Operating Information
Operating Indicators by Function/Program
Last Ten Fiscal Years
Schedule 16
Function/Program 2024 2023
2022 2021 2020 2019 2018 2017 2016 2015
Police
Arrests 1,514 1,867
1,404 2,966 2,649 1,817 1,256 1,046 1,339 1,585
Parking citations issued 8,034 7,501
7,725 9,472 7,898 6,244 8,086 7,676 8,047 7,863
Fire
Number of emergency calls 3,623 4,420 6,098 2,803 2,789 2,823 3,822 3,206 3,352 3,212
Inspections 2,303 1,264 2,132 2,256 2,267 2,288 2,430 2,311 2,564 2,793
Public Works
Street resurfacing (miles) 7.20 1.92 4.60 0.00 0.00 1.00 0.80 0.70 1.00 0.55
Parks and recreation
classes 543 617 491 210 387 631 707 873 871 839
Number of facility rental 3,299 3,191 2,797 1,244 2,387 2,508 3,679 6,226 3,070 2,607
Source: City of Rosemead
Unless otherwise Noted, the Source for Statistical Information is the City of Rosemead, Department of Finance
214
City of Rosemead
Operating Information
Capital Asset Statistics by Function
Last Ten Fiscal Years
Source: City of Rosemead
Unless otherwise Noted, the Source for Statistical Information is the City of Rosemead, Department of Finance
215
Schedule 17
Function/Program
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
Administration
City Hall
1
1
1
1
1
1
1
1
1
1
Public Safety
Public Safety Center
1
1
1
1
1
1
1
1
1
1
Public Works
Corporate Yard
1
1 1
1
1
1
1
1
1
1
1
Streets (miles)
81.8
81.8
81.8
81.8
81.8
81.80
81.80
81.90
81.90
77.60
Streetlights
2684
2684
2684
2511
2511
2,511
2,511
2,712
2,712
2,712
Traffic signals
43
43
43
42
42
42
42
42
41
42
Parks and recreation:
Parks
12
12
12
12
12
12
11
10
10
10
Community centers
2
2
2
2
2
2
2
2
2
2
Dinsmoor House
1
1
1
1
1
1
1
1
1
1
Source: City of Rosemead
Unless otherwise Noted, the Source for Statistical Information is the City of Rosemead, Department of Finance
215
CITY OF ROSEMEAD
Iodads Small Town America
Attachment B
Auditors' Letter to Mayor and City Council
for Year Ended June 30, 2024
LSL96 *0
December 9, 2024
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 City of Rosemead, California (the "City") for the year ended June 30, 2024.
Professional standards require that we provide you with information about our responsibilities under generally
accepted auditing standards and Govemment 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 August 26, 2024. 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 City 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 fiscal year ended June 30, 2024. 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 valuations. We evaluated the methods, assumptions, and
data used to develop the actuarial valuation estimates in determining that it is 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 misstatements were identified during the course of our audit.
PrimeGlobal
LSL*�::
To the Honorable Mayor and Members of the City Council
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 9, 2024.
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 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 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.
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 2024-2025
GASB Statement No. 101, Compensated Absences
GASB Statement No. 102, Certain Risk Disclosures
LS L*:::
To the Honorable Mayor and Members of the City Council
City of Rosemead, California
Fiscal Year 2025-2026
GASB Statement No. 103, Financial Reporting Model Improvements.
Future Projects
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.
Practice Issue, Subsequent Events.
Restriction on Use
This information is intended solely for the information and use of the 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
yo
truly yours, c,/ Q
Irvine, California
Attachment C
Independent Auditors' Report on Internal
Control over Financial Reporting
L S L` 00
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 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, 2024, 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 9, 2024.
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 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.
PrimeGlobal
LS L*�::
To the Honorable Mayor and Members of the City Council
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.
Irvine, California
December 9, 2024
Attachment D
Report on Agreed -Upon Procedures Applied
to Appropriations Limit
L SL•'::
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 perforated 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, 2024.
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 -13 of the California Constitution), were performed solely to
assist the City of Rosemead in meeting the requirements of Section 1.5 of Article XIII -13 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
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.
wr�w. Icpas.r,r�m PrimeGlobal
of
LOU
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.
0;;�, .4 'W-4;rZa' Vow
Brea, California
July 30, 2024
CITY OF ROSEMEAD
2023-2024
APPROPRIATIONS LIMIT CALCULATION
A. 2022-2023 APPROPRIATIONS LIMIT: $ 58,766,896
B. 2023-2024 CHANGE IN PER CAPITA PERSONAL
INCOME:
C. 2023-2024 CHANGE IN POPULATION:
D. RATIO OF CHANGE (1.0444 x 0.9983) x 1.04262452
E. 2023-2024 APPROPRIATIONS LIMIT: 61.271.80
(58,766,896 x 1.04262452)
1.0444%
0.9983%
Attachment E
Rosemead Housing Development
Corporation Basic Financial Statements
LS L"�'
ROSEMEAD HOUSING DEVELOPMENT CORPORATION
A COMPONENT UNIT OF
THE CITY OF ROSEMEAD, CALIFORNIA
BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024 (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, 2024
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, 2024
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
tothe 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
Notesto 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 NTH GOVERNMENTAUDITING STANDARDS......................................................................19
LSL:*�'•
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 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, 2024, 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 the General Fund of the Corporation, as of June 30, 2024, 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, 2024, 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.
PrimeGlobal k;kd, tl
LS Lo*:
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
information 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.
LS L9*::
To the Board of Directors
Rosemead Housing Development Corporation
City of Rosemead, California
Other Reporting Required by Govemment Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 9, 2024, 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 the City's internal control over the
Corporation's financial reporting and compliance.
Irvine, California
December 9. 2024
ROSEMEAD HOUSING DEVELOPMENT CORPORATION
A COMPONENT UNIT OF THE CITY OF ROSEMEAD, CALIFORNIA
Statement of Net Position
June 30, 2024
ASSETS
Cash and investments
Accrued interest
Due from other governments
Prepaid costs
Capital assets, net of accumulated depreciation/amortization
Total assets
LIABILITIES
Accounts payable
Deposits payable
Due to primary governement
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
See accompanying notes to financial statements.
Governmental
Activities
$ 345,775
2,457
340,793
24,150
10,949,740
11,662,915
38,349
45,094
170,099
183,400
4,995,217
5,432,159
5,771,123
459,633
$ 6,230,756
ROSEMEAD HOUSING DEVELOPMENT CORPORATION
A COMPONENT UNIT OF THE CITY OF ROSEMEAD, CALIFORNIA
Statement of Activities
For the Year Ended June 30, 2024
Functions/Programs:
Primary government:
Governmental activities:
General government
Total governmental activities
See accompanying notes to financial statements.
Net(Expenses)
Revenues and
Changes in Net
Program Revenues Position
Operating
Charges for Contributions Governmental
Expenses Services and Grants Activities
$ 1,266,886 $ 485,969 $ 550,267 $ (230,650)
1,266,886 485,969 550,267 (230,650)
General revenues
Investment income
9,611
Other
5,022
Total general revenues
14,633
Change in net position
(216,017)
Net position -beginning
6,446,773
Net positloncnding
$ 6,230,756
ROSEMEAD HOUSING DEVELOPMENT CORPORATION
A COMPONENT UNIT OF THE CITY OF ROSEMEAD, CALIFORNIA
Balance Sheet
General Fund
June 30, 2024
ASSETS
Cash and investments
Accrued interest
Due from other governments
Prepaid expenses
Total assets
LIABILITIES
Accounts payable
Deposits payable
Due to other governments
Total liabilities
FUND BALANCES (DEFICITS)
Nonspendable - prepaids
Unassigned
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
See accompanying notes to financial statements.
$ 345,775
2,457
340,793
24,150
$ 713,175
$ 38,349
45,094
170,099
253,542
24,150
435,483
459,633
$ 713,175
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, 2024
Amounts reported for governmental activities in the Statement of Net Position are different because
Total fund balances - governmental funds
459,633
Capital assets net of accumulated depreciation/amortization have not been included as
financial resources in governmental fund activity. 10,949,740
Long-term debt that have not been included as financial resources in governmental fund
activity.
Leases payable (5,178,617)
Net position of govemmental activities
See accompanying notes to financial statements.
$ 6,230,756
ROSEMEAD HOUSING DEVELOPMENT CORPORATION
A COMPONENT UNIT OF THE CITY OF ROSEMEAD, CALIFORNIA
Statement of Revenues, Expenditures, and Changes in Fund Balances
General Fund
For the Year Ended June 30, 2024
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 balances
Fund balances, Beginning of Year
Fund balances, End of Year
See accompanying notes to financial statements.
$ 550,267
495,580
5,022
1,050,869
745,414
115,298
183,400
1,044,112
6,757
452,876
$ 459,633
ROSEMEAD HOUSING DEVELOPMENT CORPORATION
A COMPONENT UNIT OF THE CITY OF ROSMEAD, CALIFORNIA
Reconciliation of the Statement of Revenues, Expenses and Changes in
Fund Balances of Governmental Funds to the Statement of Activities
For the Year Ended June 30, 2024
Amounts reported for governmental activities in the Statement of Activities are different because:
Net change in fund balances - total governmental funds:
6,757
Governmental funds report capital outlays are expenditures. However, in the Statement of
Activities, the cost of these assets is allocated over their estimated useful lives and
reported as depreciation/amortization expense. This is the amount by which capital
outlays exceeded depreciation/amortization expense in the current period. (406,174)
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
See accompanying notes to financial statements.
$ (216,017)
ROSEMEAD HOUSING DEVELOPMENT CORPORATION
A COMPONENT UNIT OF THE CITY OF ROSEMEAD, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reoortina Enti
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
For the Year Ended June 30, 2024
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
For the Year Ended June 30, 2024
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 forthat fiscal year. Income from property and investments includes interest earnings, changes in fairvalue,
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
For the Year Ended June 30, 2024
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
management to make estimates and assumptions that
Accordingly, actual results could differ from those estimates.
13
generally accepted accounting principles requires
affect certain reported amounts and disclosures.
ROSEMEAD HOUSING DEVELOPMENT CORPORATION
A COMPONENT UNIT OF THE CITY OF ROSEMEAD, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024
NOTE 2: STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
A. Violations of Legal or Contractual Provisions
For the year ended June 30, 2024, expenditures exceeded appropriations in the operating costs function of the
general fund by $179,214.
NOTE 3: CASH AND INVESTMENTS
Cash and investments at June 30, 2024 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 $345,775.
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, 2024, the
Corporation had no deposits with financial institutions in excess of federal depository insurance limits.
NOTE 4: 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 $115,298 for administrative services to the City during the year ended
June 30, 2024. 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 $92,200 in lease payments to the City during the year ended June 30, 2024 for the Angelus and
Garvey Senior Housing facilities, respectively.
NOTE 5: LEASE PAYABLE
As of June 30, 2024, the lease liability outstanding and the total intangible asset net of accumulated amortization
amounted to $5,178,617. 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
$ 5,362,017 $ - $ 183,400 $ 5,178,617 $ 183,400
14
ROSEMEAD HOUSING DEVELOPMENT CORPORATION
A COMPONENT UNIT OF THE CITY OF ROSEMEAD, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024
NOTE 5: LEASE PAYABLE (CONTINUED)
Future principal and interest requirements to maturity for the combined capital lease liability as of June 30, 2024,
are as follows:
Year ending
June 30,
2025
2026
2027
2028
2029
2030-2034
2035-2039
2040-2044
2045-2049
2050-2054
2055-2059
Total
Future Principal and Interest
Governmental Activities
Principal
$ 183,400
183,400
183,400
183,400
183,400
917,000
917,000
917,000
734,600
461,000
315,017
$ 5,178,617 $
NOTE 6: CAPITAL ASSETS
Interest
Total Payments
$ 183,400
183,400
183,400
183,400
183,400
917,000
917,000
917,000
734,600
461,000
315,017
$ 5,178,617
During the year ended June 30, 2024, the changes in capital assets were as follows:
Balance at
Govemmental Activities:
Capital assets being depreciated/amortized:
Building and improvements $ 11,042,597 $
Furniture and equipment 128,544
Right -to -use facilities 10,087,000
Total Capital Assets,
Being Depreciated/amortized
Less accumulated depreciation/amortization:
Building and improvements
Furniture and equipment
Right -to -use facilities
Total Accumulated
Depreciationtamortization
21,258,141
(5,048,700) (222,774)
(128,544) -
(4,724,983) (183,400)
(9,902,227) (406,174)
Balance at
$ - $ 11,042,597
128,544
- 21,258,141
(5,271,474)
(128,544)
(10,308,401)
Govemmental Activities
Capital Assets, Net $ 11,355,914 $ (406,174) $ - $ 10,949,740
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
For the Year Ended June 30, 2024
NOTE 7: 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 8: 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
$25,831 for the Angelus Senior Housing facility and $38,376 for the Garvey Senior Housing facility during fiscal
year ended June 30, 2024.
16
ROSEMEAD HOUSING DEVELOPMENT CORPORATION
A COMPONENT UNIT OF THE CITY OF ROSEMEAD, CALIFORNIA
Notes to the Required Supplementary Information
For the Year Ended June 30, 2024
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 yearend 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, 2024
EXPENDITURES
Operating costs
566,200
566,200
745,414
Variance with
Administrative services paid to City of Rosemead
118,800
118,800
115,298
Final Budget
Facility rent paid to City of Rosemead
183,400
183,400
Actual
Positive
Total expenditures
Original
Final
Amounts
(Negative)
REVENUES
Intergovernmental
$ 437,800
$ 437,800
$ 550,267
$ 112,467
Use of money and property
492,700
492,700
495,580
2,880
Miscellaneous
4,600
4,600
5,022
422
Total revenues
935,100
935,100
1,050,869
115,769
EXPENDITURES
Operating costs
566,200
566,200
745,414
(179,214)
Administrative services paid to City of Rosemead
118,800
118,800
115,298
3,502
Facility rent paid to City of Rosemead
183,400
183,400
183,400
-
Total expenditures
868,400
868,400
1,044,112
(175,712)
Net change in fund balances $ 66,700 $ 66,700 6,757$ (59,943)
Fund balances -beginning
Fund balances (deficit) -ending
18
452,876
$ 459,633
LS L:o 09
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, 2024, 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 9, 2024.
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.
Pkmedobal47
Attachment F
Auditors' Letter to Board of Directors of the
Rosemead Housing Development
Corporation for Year Ended June 30, 2024
LS U*
December 9, 2024
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 (the "City") for the year ended June 30, 2024. 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 August 26, 2024. 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 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, 2024.
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.
PrimeGlobal
.so:
L L•••of•
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 9, 2024.
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 auditors 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 management's discussion and analysis, the budgetary comparison
schedules 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 2024-2025
GASB Statement No. 101, Compensated Absences.
GASB Statement No. 102, Certain Risk Disclosures.
Fiscal Year 2025-2026
GASB Statement No. 103, Financial Reporting Model Improvements.
Future Projects
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.
LS L*:::
To the Board of Directors
Rosemead Housing Development Corporation
City of Rosemead, California
Practice Issue, Risks and Uncertainties Disclosures.
Practice Issue, 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
ytruly youurrrss, a,/
Irvine, California (� /f