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CC - Item 4C - Acceptance of Annual Audit Reports for FY Ended June 30, 2025WWW.LSLCPAS.COM THIS PAGE INTENTIONALLY LEFT BLANK 2 CITY OF ROSEMEAD ROSEMEAD, CALIFORNIA Annual Comprehensive Financial Report With Report on Audit By Independent Certified Public Accountants For the Year Ended June 30, 2025 3 THIS PAGE INTENTIONALLY LEFT BLANK 4 CITY OF ROSEMEAD ROSEMEAD, CALIFORNIA Annual Comprehensive Financial Report With Report on Audit By Independent Certified Public Accountants For the Year Ended June 30, 2025 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21 Management’s Discussion and Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27 Basic Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43 Government-Wide Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .45 Statement of Net Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .47 Statement of Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .48 Fund Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .49 Government Fund Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .51 Balance Sheet - Governmental Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .53 Reconciliation of the Governmental Funds Balance Sheet of Governmental Funds to the Statement of Net Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities . . . . . . . . . . . . . . . . . . . . . . . 59 Proprietary Fund Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .61 Statement of Net Position - Proprietary Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .63 Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds . . . .64 Statement of Cash Flows - Proprietary Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .65 Fiduciary Fund Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .67 Statement of Fiduciary Net Position - Fiduciary Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .69 Statement of Changes in Fiduciary Net Position - Fiduciary Funds . . . . . . . . . . . . . . . . . . . . .70 Notes to The Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .71 Page Continued on Following Page 5 CITY OF ROSEMEAD ROSEMEAD, CALIFORNIA Annual Comprehensive Financial Report With Report on Audit By Independent Certified Public Accountants For the Year Ended June 30, 2025 Table of Contents FINANCIAL SECTION (continued) Page Required Supplementary Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .111 Budgetary Comparison Schedules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .113 General Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .115 City Grants Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .116 American Rescue Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .117 HOME Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .118 Pension Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .119 Schedules of Proportationate Share of Net Pension Liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .121 Schedules of Plan Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .122 Schedule of Changes in the Net Pension Liability/(Asset) and Related Ratios - PARS Retirement Enhancement Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124 PARS Retirement Enhancement Plan - Schedule of Contributions . . . . . . . . . . . . . . . . . . . . . . . .126 Schedule of Changes in the Net OPEB Liability/(Asset) and Related Ratios - Safety Plan . . . . . . .128 Schedule of Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .130 Combining and Individual Fund Statements and Schedules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .132 Nonmajor Governmental Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .133 Combining Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .135 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances . . . . . . . . .140 Budgetary Comparison Schedules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .146 SLFRF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .148 State Gas Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .149 Local Transportation and Sidewalk Grant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .150 Proposition A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .151 Proposition C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .152 Measure R . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .153 Measure M . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .154 Air Quality Management District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .155 Street Lighting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .156 Development Impact Fee Traffic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .157 Development Impact Fee Public Safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .158 Development Impact Fee General Govt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .159 Development Impact Fee Parks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .160 Community Development Block Grant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .161 HDC Senior Housing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .162 Road Maintenance and Rehabilitation Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .163 Clean Water Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .164 SB1383 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .165 Measure R Capital Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .166 Continued on Following Page 6 CITY OF ROSEMEAD ROSEMEAD, CALIFORNIA Annual Comprehensive Financial Report With Report on Audit By Independent Certified Public Accountants For the Year Ended June 30, 2025 Table of Contents Page Internal Service Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .168 Combining Statement of Net Position - Internal Service Funds . . . . . . . . . . . . . . . . . . . . . . . . . . .170 Combining Statement of Revenues, Expenses and Changes in Net Position - Internal Service Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171 Combining Statement of Cash Flows - Internal Service Funds . . . . . . . . . . . . . . . . . . . . . . . . . . .172 STATISTICAL SECTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .174 Financial Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .178 Schedule 1 - Net Position by Component . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .180 Schedule 2 - Changes in Net Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .182 Schedule 3 - Fund Balances of Governmental Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .184 Schedule 4 - Changes in Fund Balances of Government Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . .186 Revenue Capacity Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .189 Schedule 5 - Assessed Value and Estimated Actual Value of Taxable Property . . . . . . . . . . . . . . . . .190 Schedule 6 - Direct and Overlapping Property Tax Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .191 Schedule 7 - Principal Property Taxpayers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .192 Schedule 8 - Property Tax Levies and Collections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .193 Debt Capacity Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .195 Schedule 9 - Direct and Overlapping Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .196 Schedule 10 - Ratios of Outstanding Debt by Type . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .197 Schedule 11 - Legal Debt Margin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .198 Schedule 12 - Pledged Revenue Coverage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .200 Demographic and Economic Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .202 Schedule 13 - Demographic and Economic Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .203 Schedule 14 - Principal Employers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .204 Schedule 15 - Top 25 Sales Tax Producers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .205 Schedule 16 - Full-Time Equivalent City Government Employees by Function/Program . . . . . . . . .206 Operating Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .208 Schedule 17 - Operating Indicators by Function/Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .209 Schedule 18 - Capital Asset Statistics by Function . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .210 7 THIS PAGE INTENTIONALLY LEFT BLANK 8 INTRODUCTORY SECTION 9 THIS PAGE INTENTIONALLY LEFT BLANK 10 Letter of Transmittal MAYOR:City of RosemeadSteven Ly MAYOR PRO TEM: Margaret Clark COUNCIL MEMBERS:8838 E. Valley Boulevard Sandra Armenta Rosemead, California 91770 Sean Dang Telephone: (626) 569-2100 Polly Low Fax: (626) 307-9218 December 19, 2025 To the Honorable Mayor, Members of the City Council, and Citizens of the City of Rosemead: We proudly present to you, the Annual Comprehensive Financial Report (ACFR) of the City of Rosemead for the fiscal year ended June 30, 2025. 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 LSL, 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, 2025, 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, 2025, 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. 11 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 Sheriff’s 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 El 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 12 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 national economic outlook continues to influence local government revenues and expenditure patterns. As of late 2025, the Federal Reserve has reduced the Federal Funds Rate to a target range of 3.75 percent to 4.00 percent in response to softening labor market conditions and continued progress toward its two percent inflation goal. These rate adjustments, combined with easing inflation of approximately 2.4 percent and a stable unemployment rate of about 4.3 percent, shape near term financial expectations for local jurisdictions. The Conference Board now forecasts United States real GDP growth of 1.8 percent in 2025 and 1.5 percent in 2026. The revised outlook reflects expectations of slowing consumer demand, continued moderation in inflation, and tighter financial conditions carrying into next year. According to the organization, lower inflation and gradual labor market cooling will support measured interest rate reductions throughout 2025 and 2026, although overall economic activity is expected to remain modest by historical standards. 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 $13.0 million and makes up approximately 39% of the General Fund revenues. Total assessed value from the 2024-25 tax roll is $6.1 billion, up $298 million from the prior year. Residential property represents 76% of this growth as housing values rise. The median sales price for a single-family home increased from $960,000 to $975,000 over the past year when comparing quarter 2 calendar year data. The residential category assessed value increased approximately $243 million, which represents a 5.2% 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 $7.1 million and represents approximately 21% of the General Fund revenues. Consumer goods continue to be the top category of sales tax generating businesses in Rosemead, generating 33% of sales tax revenues followed by 28% from restaurants and hotels. Prior to the pandemic, Transient Occupancy Tax (TOT) revenue was typically the City’s third largest General Fund revenue source. For the current period, TOT receipts total $2.3 million, placing them fourth overall, now trailing increased building permit revenue, which has risen to $3.4 million. 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.In December 2021, the City Council adopted a 2030 Strategic Plan which focuses and values safety, diversity, community, service, and family. This vision will assist in creating a safe, welcoming, connected, and active city, a destination with thriving local businesses, well-maintained parks and infrastructure, and quality programming and services which support the entire City. Our overall mission is for Rosemead to provide quality programs, services, and 13 support that builds relationships, increase opportunities, and make Rosemead a great place to live, work, and play. Major Accomplishments The City recognizes that there’s a housing shortage in the State of California and has accounted for an excess number of housing units above our Regional Housing Needs Allocation (RHNA) of 4,612 units during the City’s 6th Cycle Housing Element. As part of the Housing Element Update the City identified ten candidate sites to rezone to further accommodate for the City’s RHNA and to comply with SB 166 (no net loss). These efforts were completed in January 2025. The City is now in the process of amending the Zoning Code and General Plan Land Use Element to further support continued growth and demand for housing, facilitate new development, and promote activation along major commercial corridors. In July 2024, the City Council approved an amendment to the professional services agreement with our project consultant, Psomas, to expand residential and mixed-use development throughout the City of Rosemead. In December 2024, the City streamlined the Accessory Dwelling Unit (ADU) plan check process and complied with Assembly Bill 1332 by developing an ADU Standard Plans Program. To date, the City has pre-approved six different detached ADU plans ranging in size from 800 - 1,200 square feet. The City received entitlement applications from the Lewis Group for a multi-residential project with approximately 200 residential units. The City also approved a Density Bonus application for an eight-unit residential development with three very-low income units. The Myriad Food Hall was approved for an addition on their rooftop, reconfiguration of various outdoor dining areas at both the ground and rooftop levels, the implementation of a new exterior color scheme, and a slight increase in the height of the building. The City participated in ground-breaking events for the Myriad Food Hall and the Taiwan Center. The City also facilitated grand opening events or streamlined the review process for the following new businesses in the City: Bake & Che, Big Ma’s Kitchen, ChaTraMue, Da Vien Coffee, Golden Delight #2, Hot Stone Pho, Starbucks, and Summerfield Tea Bar. The Building and Safety Division continues to streamline processes to better serve the community. The City digitized building permit files and available paper plans to provide an efficient document retrieval system. The City also retained OpenGov for permit and land use management services which contributes to improving the City’s development process. The City also partnered with SolarAPP+ to streamline the permit process for eligible small solar projects by allowing online submissions. The Building and Safety Division finaled the Cassia Project, 37 residential units with eight smalls lots, four of which are affordable units. In addition, the Building and Safety Division plan checked close to 700 plans, issued almost 900 permits, and conducted approximately 3,500 inspections. Utilizing the City’s Community Development Block Grant (CDBG) grant funding from the U.S. Department of Housing and Urban Development (HUD), the Housing Division assisted several business owners with exterior improvements that include outdoor dining furnishings, new signage, and security enhancements through the Commercial Improvement Program. With CDBG funding, the City also provided grant funding to eleven homeowners for emergency code deficiencies or critical health and safety-related improvements through the Owner-Occupied Rehabilitation Program. Furthermore, the City provided funding to the CDBG Program subrecipients to assist over 800 Rosemead residents with groceries, senior nutrition, fair housing information, temporary housing, youth employment, and medical/health services. The Housing Division assisted five low-income home buyers for the purchase of homes in the City of Rosemead utilizing the City’s Homeownership Assistance Program, which is funded by HUD’s Home Investment Partnership Program (HOME) funds. 14 The City also retained National CORE for property management services at both Garvey and Angelus Senior Complexes. The Public Works Department completed major projects during FY 24-25 including the Mission Drive Pedestrian Hybrid Beacon System, Roof Replacement at Public Works Office & Warehouse Building, Annual Sidewalk Replacement, and Rosemead Park Restroom Renovation. The projects were funded using a variety of sources. The City of Rosemead generated $3.9 million in interest earnings largely due to favorable returns on its investments in fixed-income securities. 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 is expected to submit their entitlements. The Myriad Food Hall will complete construction and the Prospect Villa and Garvey Del Mar Plaza mixed-use projects will begin construction. The approved small lot subdivision projects should also begin construction. The City will complete 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 also retain a consultant to assist with updates to several elements of the General Plan to comply with State law. The City is expected to fully integrate OpenGov for permit and land use management services, including online payment. The City will also seek grant opportunities that contribute to the City's economic development, housing production, workforce development, and cultural art activities. 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, 2024. 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, 2025. 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, LSL, 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, Bryan Chua Assistant City Manager/Finance Director/City Treasurer 15 Directory of Officials CITY COUNCIL Margaret Clark Sandra Armenta Mayor Mayor Pro Tem Steven Ly Sean Dang Polly Low Council Member Council Member Council Member EXECUTIVE STAFF City Manager ......................................................................................Ben Kim City Clerk ..............................................................................................Ericka Hernandez City Attorney ........................................................................................Rachel H. Richman Assistant City Manager/Finance Director ........................................Bryan Chua Chief of Police (LA County Sheriff’s Dept) ......................................Kevin Tiwari Director of Community Development ...............................................Lily Valenzuela Director of Parks & Recreation .........................................................Thomas Boecking Director of Public Safety ....................................................................Tim Murakami Director of Public Works ....................................................................Sam Gutierrez 16 Organizational Chart 17 Government Finance Officers Association Award 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, 2024. 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. 18 THIS PAGE INTENTIONALLY LEFT BLANK 19 THIS PAGE INTENTIONALLY LEFT BLANK 20 FINANCIAL SECTION 21 THIS PAGE INTENTIONALLY LEFT BLANK 22 23 24 25 THIS PAGE INTENTIONALLY LEFT BLANK 26 MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) Management’s Discussion and Analysis Financial Highlights for Year Ended June 30, 2025 27 THIS PAGE INTENTIONALLY LEFT BLANK 28 Introduction This Management’s Discussion and Analysis provides an overview of the City of Rosemead financial activities for the fiscal year ended June 30, 2025. 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 43. 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, 2025, the City’s net position (total assets and deferred outflows of resources less total liabilities and less deferred inflows of resources) is $133.8 million, an increase of $9.2 million over the prior fiscal year, including the beginning net position. • As of June 30, 2025, total revenue was $53.7 million and total expenses for all functions and programs were $43.4 million. The City’s net position increased by $9.2 million during the year. • The City’s total governmental funds reported combined ending fund balances of $71.5 million, an increase of $6.2 million over the prior year. Of this $71.5 million, $0.4 million was non-spendable, $34.8 million was restricted, $12.7 million was committed, $0.1 million was assigned, and $23.5 million was unassigned. • With $33.2 million in general fund revenues (excluding transfers) and $30.3 million in general fund expenditures (excluding transfers), a pre-transfer general fund surplus of $2.9 million was generated. • The General Fund’s fund balance at the close of the fiscal year was $37.0 million, an increase of $2.6 million over the prior year. Of this $37.0 million, $23.8 million, representing 79% of expenditures, was unassigned and $12.7 million was committed to meet the City’s fund balance policy requirement of 40% of expenditure. Overview of Financial Statements The discussion and analysis portion of the annual report is intended to serve as an introduction to and 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.Fiduciary funds 5.Statistical Section - this section presents selected financial and demographic information, generally presented on a multi-year basis. CITY OF ROSEMEAD Management’s Discussion and Analysis (Unaudited) For the Year Ended June 30, 2025 29 The Financial Statements The Basic Financial Statements are comprised of the Government-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 45-48 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 CITY OF ROSEMEAD Management’s Discussion and Analysis (Unaudited) For the Year Ended June 30, 2025 Overview of Financial Statements (Continued) 30 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 133. 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 pages 170-172. •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 basic fiduciary fund financial statements can be found on pages 69-70. 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 135-172 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 115-131 of this report. CITY OF ROSEMEAD Management’s Discussion and Analysis (Unaudited) For the Year Ended June 30, 2025 Overview of Financial Statements (Continued) 31 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, 2025, the City’s net position totaled $133.8 million. Total net position increased by $9.2 million or 7.4% when compared to the prior year. The chart below reflects the City’s net position for the fiscal year ended June 30, 2025, with comparative data for the fiscal year ended June 30, 2024. 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, 2025: Governmental Activities 2025 2024 Change Assets: Cash and investments $ 87,409,331 $ 81,397,462 $ 6,011,869 Receivables and other assets 11,426,067 9,755,254 1,670,813 Capital assets 56,259,187 53,915,037 2,344,150 Total assets 155,094,585 145,067,753 10,026,832 Deferred outflows of resources: Deferred outflows 3,861,566 4,782,723 (921,157) Total deferred outflows of resources 3,861,566 4,782,723 (921,157) Liabilities: Current and other liabilities 11,126,568 12,044,306 (917,738) Long-term liabilities 13,304,649 11,965,041 1,339,608 Total liabilities 24,431,217 24,009,347 421,870 Deferred inflows of resources: Deferred inflows 716,728 1,239,447 (522,719) Total deferred inflows of resources 716,728 1,239,447 (522,719) Net position: Net investment in capital assets 55,862,588 53,652,795 2,209,793 Restricted 37,347,973 31,657,170 5,690,803 Unrestricted 40,597,645 39,291,717 1,305,928 Total net position $ 133,808,206 $ 124,601,682 $ 9,206,524 CITY OF ROSEMEAD Management’s Discussion and Analysis (Unaudited) For the Year Ended June 30, 2025 32 The City’s net position of $133.8 million is made up of three components: Net Investment in Capital Assets, Restricted Net Position, and Unrestricted Net Position. The largest portion, $55.9 million or 41.7%, 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 $37.3 million or 27.9% of the City’s net position represents various resources subject to external restrictions on how they may be used. These fund balance amounts are considered restricted. The remaining $40.6 million, or 30.3% of unrestricted net position can be used to meet the City’s ongoing obligations. This is the only “discretionary” portion of the City’s total net position amount. See Figure A below for more information. Compared to the prior year, current and other assets increased by $10.0 million. This increase was primarily due to a $6.0 million additional investment with higher interest earned and fair value adjustments. A $1.7 million increase in notes and loan receivables from the Home fund, which provides funding in the form of a silent second loan to homebuyers for the purpose of acquiring housing within the City of Rosemead. This loan is forgiven at a rate of 25% every five years, becoming fully forgivable at the commencement of the 21st year. Capital assets increased by $2.3 million due to City’s significant improvements, additional capital projects, and construction in progress this fiscal year. Total liabilities slightly increased by $0.4 million due to a $2.7 million increased in payables related to various capital projects and the implementation of GASB 101 compensated absences for $1.7 million offset by $3.2 million decrease in unearned revenue related to the Grants Fund and American Rescue Plan Act (ARPA) monies spent during the year, a $0.5 million decrease in accrued interest payable, leases and subscriptions, and a $0.2 million decrease in pension and other post-employment benefit obligations. Figure A.Net Position by Component Unrestricted , 30% Restricted, 28% Net investment in capital assets, 42% Activities and Changes in Net Position 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, 2025 and 2024. CITY OF ROSEMEAD Management’s Discussion and Analysis (Unaudited) For the Year Ended June 30, 2025 Financial Analysis of the City as a Whole (Continued) 33 Table 2. Condensed Statement of Activities A summarized comparison of the City’s Revenues, Expenses, and Changes in Net Position as of June 30, 2025 : Governmental Activities 2025 2024 Change Revenues: Program revenues: Charges for services $ 11,884,848 $ 8,909,826 $ 2,975,022 Operating grants and contributions 10,771,676 11,915,536 (1,143,860) Capital grants and contributions 2,392,150 2,133,127 259,023 General revenues: Property taxes 12,960,873 12,233,339 727,534 Transient occupancy taxes 2,320,163 2,238,353 81,810 Sales taxes 7,106,216 6,999,889 106,327 Franchise taxes 1,899,241 1,835,039 64,202 Other taxes 138,634 118,580 20,054 Use of Money and property 4,169,663 3,793,154 376,509 Other 87,443 16,276 71,167 Total revenues 53,730,907 50,193,119 3,537,788 Expenses: Governmental activities: General government 6,178,285 5,613,800 564,485 Public safety 12,896,287 12,935,463 (39,176) Community development 6,467,687 5,000,935 1,466,752 Parks and recreation 4,965,700 4,314,376 651,324 Public works 12,817,124 12,197,341 619,783 Interest on long-term debt 42,759 3,735 39,024 Total expenses 43,367,842 40,065,650 3,302,192 Changes in net position 10,363,065 10,127,469 235,596 Net position - beginning 124,601,682 114,474,213 10,127,469 Restatement (1,156,541) — — Net position - beginning, as restated 123,445,141 114,474,213 10,127,469 Net position - ending $ 133,808,206 $ 124,601,682 $ 9,206,524 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 operating revenues: The total revenues increased by $3.5 million compared to prior year. The growth was primarily driven by a $0.7 million increase in property tax revenue, a $0.1 million increase in sales tax receipt, a $0.1 million increase in transient occupancy taxes, a $3.0 million increase in charges for services, and a $0.4 million increase in the use of money and property. These gains were partly offset by a $1.1 million decrease in grants and contribution due to the offsetting of program income incurred by the city to the grants received from HUD. CITY OF ROSEMEAD Management’s Discussion and Analysis (Unaudited) For the Year Ended June 30, 2025 Financial Analysis of the City as a Whole (Continued) 34 •Total operating expenses: Total expenses were $3.3 million more than the prior fiscal year due to increases in General Government by $0.6 million, Parks and Recreation by $0.7 million, Public Works by $0.6 million. These increases were driven by higher personnel, contract services, and utility costs. Community Development expenses also increased by $1.5 million as a result of grants received from HUD for the Homeownership Assistance Program. •The $1.2 million restatement is due to the implementation of GASB 101, Compensated Absences. Under this statement, the City is required to change its estimate of compensated absence liability to reflect “more likely than not” rather than a probability. The effect of the implementation of the change in accounting principle resulted in adjustments to and restatement of the beginning net position in the governmental activities. Governmental Activities Governmental activities. The City’s program revenues totaled $25.0 million with a cost of all governmental activities for the current year being $43.4 million. The City paid for the remaining “public benefit” portion of governmental activities with tax and other general revenue sources. The following chart compares expenses to program revenues for all governmental activities. Figure B.Expenditures & Program Revenues - Governmental Activities Ac t i v i t i e s Expenses Program Revenues Gen Govt Police Fire Streets Building Comm Dev Parks & Rec Other 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 CITY OF ROSEMEAD Management’s Discussion and Analysis (Unaudited) For the Year Ended June 30, 2025 Financial Analysis of the City as a Whole (Continued) 35 Figure C.Revenue by Source - Governmental Activities Charges for services, 24.0% Operating grants and contributions, 21.7% Capital grants and contributions, 4.8% Property taxes, 26.2% Transient occupancy taxes, 4.7% Sales taxes, 14.3% Franchise taxes, 3.8% Other taxes, 0.3% Other, 0.2% Figure D.Expenses by Source - Governmental Activities General government, 14.2% Public safety, 29.7% Community development, 14.9% Parks and recreation, 11.5%Public works, 29.6% CITY OF ROSEMEAD Management’s Discussion and Analysis (Unaudited) For the Year Ended June 30, 2025 Financial Analysis of the City as a Whole (Continued) 36 Figure E.Sources of Government-Type Revenue - Two Year Comparison Re v e n u e ( i n M i l l i o n s ) 2025 2024 Charges for services Operating grants and contributions Capital grants and contributions Property taxes Transient occupancy taxes Sales taxes Franchise taxes Other taxes Other 0M 5M 10M 15M Figure F.Sources of Government-Type Expenses - Two Year Comparison Re v e n u e ( i n M i l l i o n s ) 2025 2024 General government Public safety Community development Parks and recreation Public works Interest on long-term debt 0M 2M 4M 6M 8M 10M 12M 14M CITY OF ROSEMEAD Management’s Discussion and Analysis (Unaudited) For the Year Ended June 30, 2025 Financial Analysis of the City as a Whole (Continued) 37 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 is the chief operating fund of the City of Rosemead. It is used to account all financial resources, except those required to be accounted for in another fund. The General Fund is always reported as a “major fund”. The fund balance of the City’s General Fund increased by $2.6 million during the current year. Highlights of the change in fund balance are presented below: •Total General Fund revenues of $33.2 million exceeded expenditures of $30.3 million. •The fiscal year's fund revenues increased by $2.0 million from the previous fiscal year. There were increases in property taxes of $0.7 million due to higher market value of existing homes and the construction of new residential and commercial property. Sales taxes increased by $0.1 million largely due to the restaurants and hotels group. Transient occupancy taxes increased by $0.08 million due to continued recovery from pandemic- related impacts. Franchise tax fees increased by $0.06 million primarily due to an annual adjustment based on the Consumer Price Index (CPI), which accounts for inflation. In addition, Licenses and permits grew by $0.5 million due to an overall increase in building activity. •Due to increases in General Government, Community Development, Parks and Recreation, and Public Works, General fund expenditures were $2.3 million higher than the previous fiscal year. The majority of the cost increase was attributable to salary and benefits of $1.7 million, legal services increase by $0.2 million, utilities by $0.1 million, and contract services for building permits increase by $0.3 million. •General Fund Budget Analysis. The budget, as adopted for 2024-25 contained $31.1 million in estimated revenue and $30.7 million in appropriations. This projected a $0.2 million surplus for the fiscal final financial results indicate that there was a revenue of $33.2 million, which exceeded the expenditures of $30.3 million. As a result, there was a positive addition of $2.9 million to the fund balance of the General Fund prior to interfund transfers. Table 3. Budget Cycle Summary 2024-25 2024-25 2024-25 Variance with % Actuals to Adopted Budget Final Actual Final Budget Amended Budget Total revenue $ 31,123,100 $ 31,123,100 $ 33,198,220 $ 2,075,120 6.7% Total expenditures 30,693,700 30,908,615 30,321,161 587,454 1.9% Net $ 429,400 $ 214,485 $ 2,877,059 $ 2,662,574 8.6% The City’s General Fund collected revenues of $2.1 million more, equal to 6.7% higher, in comparison to the final budgeted estimates. Revenue from property taxes, franchise fees, building permits, parks and recreation programs, and use of money and property were all higher than expected, contributing $0.2 more revenue than budgeted. CITY OF ROSEMEAD Management’s Discussion and Analysis (Unaudited) For the Year Ended June 30, 2025 38 Property tax revenue was $361 thousand more than budgeted due to growth in the assessed valuation of properties. Charges for services were $85 thousand more than budgeted, primarily due to parks and recreation programs and an increase in recreation facility rentals. The use of money and property was $0.7 million more than the budget due to the increase in the value of the city’s investment earnings at the end of the year The General Fund expenditure budget ended the year with a positive variance of $0.6 million, primarily attributable to savings in General government departments. Additional savings were realized through lower contingency expenditures, personnel cost reductions due to vacancies, and decreased contract service spending. Public Safety expenditures were $0.5 million below budget as a result of reduced law enforcement contract costs and lower animal control service activity. These favorable variances were partially offset by higher than anticipated water utility charges within Public Works for $167 thousand, as well a increased in salary and wages costs for part-time Aquatics personnel in the the Parks and Recreation department for $95 thousand. 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 $2.5 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. Home Fund. Formerly a non-major fund, the Department of Housing and Urban Development (HUD) allocates funds to the City for the purpose of expanding the City's supply of decent, safe, sanitary, and affordable housing for very low and low-income families. Through this fund, the City provides funding in the form of a silent second loan to homebuyers for the purpose of acquiring housing within the City of Rosemead. This loan is forgiven at a rate of 25% every five years and becomes fully forgivable at the commencement of the 21st year. The total loan provided to the homeowners at the end of the fiscal year was $1.6 million. Non-Major Funds. The Non-Major Governmental Funds show a combined fund balance total of $31.6 million, an increase of $5.0 million. These are the traditional MTA Local Return Funds, State Gas Tax, Street Lighting, CDBG, 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 and Debt Administration Capital Assets. The City of Rosemead’s investment in capital assets for its governmental activities as of June 30, 2025, amounts to $56.3 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 seven major projects during the year, including various Residential Street Resurfacing, New Avenue Rehabilitation, Mission Drive Pedestrian Beacon System (Traffic Signals), Strathmore Street Roadway Rehabilitation, Concrete Replacement, Rosemead Restroom Adjacent to Aquatic CITY OF ROSEMEAD Management’s Discussion and Analysis (Unaudited) For the Year Ended June 30, 2025 Financial Analysis of Funds (Continued) 39 Center, and Roof Replacement at Public Works Office and Warehouse Building. The projects were funded by a variety of sources, including RMRA, TDA 3, ARPA, Measure M, Grants, and the Street Lighting District. Additional information on the City of Rosemead’s capital assets can be found in Note 7, found on page 90 of the Basic Financial Statements. Table 4. Summary of Activities - Capital Assets Governmental Activities 2025 2024 Capital assets not subject to depreciation/ amortization: Land $ 6,560,869 $ 6,560,869 Construction in progress 3,647,956 2,343,852 Depreciable capital assets: Buildings 12,914,178 12,838,911 Improvements other than buildings 3,206,495 3,050,971 Machinery and equipment 392,851 472,303 Autos and trucks 194,205 127,394 Furniture and office equipment 2,346 5,160 Subscription assets 101,847 6,224 Lease assets 179,148 185,647 Infrastructure 29,059,292 28,323,706 Total capital assets, net $ 56,259,187 $ 53,915,037 Debt Administration At the end of the current fiscal year, the Successor Agency for the Rosemead Community Commission had total bonded debt outstanding of $15.1 million, a decrease of $1.4 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 107-109 of the Basic Financial Statements. Other Long-Term Liabilities As of June 30, 2025, the City’s governmental activities had $ 13.7 million in other long-term liabilities, which included the net pension liability, other post-employment benefits obligations, leases and subscriptions payable, and compensated absences. This represented a $1.2 million increase from the previous year’s total of $12.5 million. The increase was primarily due to the implementation of GASB 101 Compensated Absences. The increase was partially offset in net pension and net other post-employment benefits obligations liabilities, and lease payables for $296 thousand and $34 thousand, respectively. CITY OF ROSEMEAD Management’s Discussion and Analysis (Unaudited) For the Year Ended June 30, 2025 Capital Assets and Debt Administration (Continued) 40 Table 5. Long-Term Liabilities Governmental Activities 2025 2024 Change Net Pension liability $ 10,796,104 10,869,642 $ (73,538) Net OPEB liability 397,823 620,645 (222,822) Leases payable 211,143 245,037 (33,894) Subscriptions payable 43,147 6,700 36,447 Compensated absences payable 2,256,851 743,427 1,513,424 Total long-term liabilities $ 13,705,068 $ 12,485,451 $ 1,219,617 Additional information on Long Term Liabilities can be found on Note 6, Note 8, Note 10, and Note 12. 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, 2025, management demonstrated attentiveness to budget requests during the preparation of the budget for Fiscal Year 2025-26. Furthermore, early financial planning and implementation continue to be crucial for maintaining a healthy fund balance. The budget for Fiscal Year 2025-26 incorporated strategic financial planning through continued contributions to Internal Service Funds, which serves to provide support for the long-term maintenance, improvements, and replacements of public facilities. The return to normalcy was aided by stimulus programs; however, the economic recovery was accompanied by elevated levels of inflation. Local economic conditions in Rosemead remain influenced by the repercussions of inflation. In addition to the federal funds already received from the American Rescue Plan Act, the City will continue to pursue federal and state assistance. Staff remains ready to recommend adjustments to revenues and expenditures as events unfold and is committed to providing the highest quality of services given the resources available. 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, 8838 East Valley Boulevard, Rosemead, California 91770. CITY OF ROSEMEAD Management’s Discussion and Analysis (Unaudited) For the Year Ended June 30, 2025 Capital Assets and Debt Administration (Continued) 41 THIS PAGE INTENTIONALLY LEFT BLANK 42 BASIC FINANCIAL STATEMENTS Basic Financial Statements 43 THIS PAGE INTENTIONALLY LEFT BLANK 44 Government-Wide Financial Statements 45 THIS PAGE INTENTIONALLY LEFT BLANK 46 Statement of Net Position Governmental Activities ASSETS Cash and investments $ 87,409,331 Receivables (net of uncollectibles): Accounts 1,224,646 Accrued interest 789,014 Due from other governments 3,282,058 Notes and loans 5,393,827 Leases 98,357 Net pension asset 500,884 Prepaid costs 137,281 Capital assets (not being depreciated) 10,208,825 Capital assets (net of accumulated depreciation/amortization) 46,050,362 Total assets 155,094,585 DEFERRED OUTFLOWS OF RESOURCES Pension-related 3,537,425 OPEB-related 324,141 Total deferred outflows of resources 3,861,566 LIABILITIES Accounts payable 5,430,956 Pass-through payables 142,309 Accrued liabilities 437,940 Accrued interest payable 4,732 Deposits payable 681,902 Unearned revenues 4,028,310 Noncurrent liabilities: Due within one year: Leases, subscriptions and compensated absences payable 400,419 Due in more than one year: Leases, subscriptions and and compensated absences payable 2,110,722 Net OPEB liability 397,823 Net pension liability 10,796,104 Total liabilities 24,431,217 DEFERRED INFLOWS OF RESOURCES Pension-related 270,685 OPEB-related 347,686 Lease-related 98,357 Total deferred inflows of resources 716,728 NET POSITION Net investment in capital assets 55,862,588 Restricted: Community services 4,182,581 Low- and moderate-income housing 2,464,673 Public works 22,684,897 Capital projects 7,514,938 Pension 500,884 Unrestricted 40,597,645 Total net position $ 133,808,206 CITY OF ROSEMEAD Statement of Net Position June 30, 2025 See accompanying Notes to the Basic Financial Statements 47 Statement of Activities Program Revenues Net (Expenses) Revenues and Changes in Net Position Expenses Charges for Services Operating Contributions and Grants Capital Contributions and Grants Governmental Activities Functions/Programs: Primary government: Governmental activities: General government $ 6,178,285 $ 408,789 $ 1,392,556 $ 429,543 $ (3,947,397) Public safety 12,896,287 804,852 194,663 1,323,863 (10,572,909) Community development 6,467,687 5,889,634 5,058,025 — 4,479,972 Parks and recreation 4,965,700 1,128,747 — — (3,836,953) Public works 12,817,124 3,652,826 4,126,432 638,744 (4,399,122) Parks and recreation — — — — — Interest on long-term debt 42,759 — — — (42,759) Total primary government $ 43,367,842 $ 11,884,848 $ 10,771,676 $ 2,392,150 (18,319,168) General revenues: General revenues: Property taxes 12,960,873 Transient occupancy taxes 2,320,163 Sales taxes 7,106,216 Franchise taxes 1,899,241 Other taxes 138,634 Use of money and property 4,169,663 Miscellaneous income 87,443 Total general revenues 28,682,233 Change in net position 10,363,065 Net position-beginning 124,601,682 Restatement - change in accounting principle (1,156,541) Net position-beginning 123,445,141 Net position-ending $ 133,808,206 End of Government-Wide Financial Statements. CITY OF ROSEMEAD Statement of Activities For the Year Ended June 30, 2025 See accompanying Notes to the Basic Financial Statements 48 Fund Financial Statements 49 THIS PAGE INTENTIONALLY LEFT BLANK 50 Government Fund Financial Statements 51 THIS PAGE INTENTIONALLY LEFT BLANK 52 Balance Sheet - Governmental Funds Special Revenue Funds General Fund City Grants Fund American Rescue Plan HOME Fund ASSETS Cash and investments $ 37,214,820 $ 1,389,746 $ 3,286,555 $ – Receivables (net of allowance for uncollectible): Accounts 1,071,848 – – – Accrued interest 373,214 12,899 – – Due from other governments 1,583,197 187,400 – 101,975 Notes and loans 251,777 – – 5,142,050 Leases 98,357 – – – Prepaid costs 137,030 – – – Due from other funds 686,302 – – – Total assets $ 41,416,545 $ 1,590,045 $ 3,286,555 $ 5,244,025 LIABILITIES Accounts payable $ 2,919,964 $ 16,602 $ 642,820 $ 31,054 Retentions payable – – 94,650 – Accrued liabilities 394,728 – 14,582 – Deposits payable 635,219 – – – Due to other funds – – – 219,930 Unearned revenues – 1,493,807 2,534,503 – Total liabilities 3,949,911 1,510,409 3,286,555 250,984 DEFERRED INFLOWS OF RESOURCES Unavailable revenues 340,195 187,400 – 2,086,405 Lease-related 98,357 – – – Total deferred inflows of resources 438,552 187,400 – 2,086,405 FUND BALANCES (DEFICITS) Nonspendable 388,807 – – – Restricted – – – 2,906,636 Committed 12,661,499 – – – Assigned 136,038 – – – Unassigned 23,841,738 (107,764) – – Total fund balances (deficits) 37,028,082 (107,764) – 2,906,636 Total liabilities, deferred inflows of resources, and fund balances (deficits)$ 41,416,545 $ 1,590,045 $ 3,286,555 $ 5,244,025 CITY OF ROSEMEAD Balance Sheet - Governmental Funds June 30, 2025 See accompanying Notes to the Basic Financial Statements 53 Total Nonmajor Funds Total Governmental Funds ASSETS Cash and investments $ 32,178,444 $ 74,069,565 Receivables (net of allowance for uncollectible): Accounts 147,798 1,219,646 Accrued interest 287,577 673,690 Due from other governments 1,409,486 3,282,058 Notes and loans – 5,393,827 Leases – 98,357 Prepaid costs 251 137,281 Due from other funds – 686,302 Total assets $ 34,023,556 $ 85,560,726 LIABILITIES Accounts payable $ 1,578,855 $ 5,189,295 Retentions payable 21,255 115,905 Accrued liabilities 28,630 437,940 Deposits payable 46,683 681,902 Due to other funds 466,372 686,302 Unearned revenues – 4,028,310 Total liabilities 2,141,795 11,139,654 DEFERRED INFLOWS OF RESOURCES Unavailable revenues 249,286 2,863,286 Lease-related – 98,357 Total deferred inflows of resources 249,286 2,961,643 FUND BALANCES (DEFICITS) Nonspendable 251 389,058 Restricted 31,854,090 34,760,726 Committed – 12,661,499 Assigned – 136,038 Unassigned (221,866) 23,512,108 Total fund balances (deficits) 31,632,475 71,459,429 Total liabilities, deferred inflows of resources, and fund balances (deficits)$ 34,023,556 $ 85,560,726 CITY OF ROSEMEAD Balance Sheet - Governmental Funds (Continued) June 30, 2025 See accompanying Notes to the Basic Financial Statements 54 Reconciliation of the Governmental Funds Balance Sheet of Governmental Funds to the Statement of Net Position Amounts reported for governmental activities in the Statement of Net Position are different because: Total fund balances - governmental funds $ 71,459,429 Capital assets, net of accumulated depreciation/amortization, used in governmental activities are not financial resources and, therefore, are not reported in the funds. 55,384,923 Differences between expected and actual experiences, assumption changes and net differences between projected and actual earnings, and contributions subsequent to the measurement date for the postretirement benefits (pension and OPEB) are recognized as deferred outflows of resources and deferred inflows of resources on the Statement of Net Position. Deferred outflows-pension related 3,537,425 Deferred outflows-OPEB related 324,141 Deferred inflows-pension related (270,685) Deferred inflows-OPEB related (347,686) Total deferred outflows and inflows related to postemployment benefits 3,243,195 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. Unavailable revenues 2,863,286 Net pension asset 500,884 Total other long-term assets 3,364,170 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. 14,018,410 Long-term liabilities that are not due and payable in the current period, and therefore, are not reported in the funds. Leases payable (211,143) Compensated absences (2,256,851) Net pension liability (10,796,104) Net OPEB liability (397,823) Total long-term liabilities (13,661,921) Net position of governmental activities $ 133,808,206 CITY OF ROSEMEAD Reconciliation of the Governmental Funds Balance Sheet of Governmental Funds to the Statement of Net Position June 30, 2025 See accompanying Notes to the Basic Financial Statements 55 THIS PAGE INTENTIONALLY LEFT BLANK 56 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds Special Revenue Funds Formerly Nonmajor Fund City Grants Fund American Rescue Plan HOME FundGeneral Fund REVENUES Taxes $ 24,188,307 $ – $ – $ – Licenses and permits 4,131,334 – – – Intergovernmental 749,343 279,941 2,771,157 722,815 Charges for services 1,347,930 – – – Use of money and property 2,093,942 76,062 – 11,432 Fines and forfeitures 630,021 – – – Miscellaneous 57,343 – – – Total revenues 33,198,220 356,003 2,771,157 734,247 EXPENDITURES Current: General government 5,824,202 – 202,998 – Public safety 12,570,051 27,960 – – Community development 2,576,011 – 19,599 2,007,572 Parks and recreation 4,597,211 – – – Public works 4,505,604 16,694 121,924 – Capital outlay 134,412 337,099 2,426,636 – Debt service: Principal retirement 91,755 – – – Interest and fiscal charges 21,915 – – – Total expenditures 30,321,161 381,753 2,771,157 2,007,572 Excess (deficiency) of revenues over (under) expenditures 2,877,059 (25,750) – (1,273,325) OTHER FINANCING SOURCES (USES) Transfers in 480,414 – – – Transfers out (900,000) – – – Lease arrangements entered into 104,706 – – – Total other financing sources (uses) (314,880) – – – Net change in fund balances 2,562,179 (25,750) – (1,273,325) Fund balances-beginning 34,465,903 (82,014) – – Change within financial reporting entity – – – 4,179,961 Fund balances (deficit)-beginning, as restated 34,465,903 (82,014) – 4,179,961 Fund balances (deficit)-ending $ 37,028,082 $ (107,764) $ – $ 2,906,636 CITY OF ROSEMEAD Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds For the Year Ended June 30, 2025 See accompanying Notes to the Basic Financial Statements 57 Total Total Nonmajor Governmental Funds Funds REVENUES Taxes $ 236,820 $ 24,425,127 Licenses and permits — 4,131,334 Intergovernmental 11,666,822 16,190,078 Charges for services 519,623 1,867,553 Use of money and property 1,380,646 3,562,082 Fines and forfeitures — 630,021 Developer contributions 466,563 466,563 Miscellaneous 7,167 64,510 Total revenues 14,277,641 51,337,268 EXPENDITURES Current: General government 20,405 6,047,605 Public safety 99,594 12,697,605 Community development 1,844,366 6,447,548 Parks and recreation 81,638 4,678,849 Public works 5,164,013 9,808,235 Capital outlay 1,566,073 4,464,220 Debt service: — Principal retirement 53,545 145,300 Interest and fiscal charges — 21,915 Total expenditures 8,829,634 44,311,277 Excess (deficiency) of revenues over (under) expenditures 5,448,007 7,025,991 OTHER FINANCING SOURCES (USES) Transfers in — 480,414 Transfers out (480,414) (1,380,414) Lease arrangements entered into — 104,706 Total other financing sources (uses) (480,414) (795,294) Net change in fund balances 4,967,593 6,230,697 Fund balances-beginning 30,844,843 65,228,732 Change within financial reporting entity (4,179,961) — Fund balances (deficit)-beginning 26,664,882 65,228,732 Fund balances (deficit)-ending $ 31,632,475 $ 71,459,429 CITY OF ROSEMEAD Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds (Continued) For the Year Ended June 30, 2025 See accompanying Notes to the Basic Financial Statements 58 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities Amounts reported for governmental activities in the Statement of Activities are different because: Net change in fund balances - total governmental funds:$ 6,230,697 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 4,415,754 Depreciation/amortization expense (2,891,123) Total adjustment 1,524,631 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 1,763,125 Total adjustment 1,763,125 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. Leases issued (104,706) Principal payments 145,300 Total adjustment 40,594 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. 1,345,734 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 (356,883) Changes in pension liabilities and related deferred outflows and inflows of resources (299,043) Changes in OPEB liabilities and related deferred outflows and inflows of resources 114,210 Total adjustment (541,716) Change in net position of governmental activities $ 10,363,065 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, 2025 See accompanying Notes to the Basic Financial Statements 59 THIS PAGE INTENTIONALLY LEFT BLANK See accompanying Notes to the Basic Financial Statements 60 Proprietary Fund Financial Statements 61 THIS PAGE INTENTIONALLY LEFT BLANK 62 Statement of Net Position - Proprietary Funds Governmental Activities Internal Service Funds ASSETS Current assets: Cash and investments $ 13,339,766 Receivables (net of uncollectibles): Accounts 5,000 Accrued interest 115,324 Total current assets 13,460,090 Noncurrent: Capital assets, net 874,264 Total noncurrent assets 874,264 Total assets 14,334,354 LIABILITIES Current liabilities: Accounts payable 268,065 Accrued interest 4,732 Subscription Payable - Current 14,497 Total current liabilities 287,294 Noncurrent liabilities: Subscription payable 28,650 Total noncurrent liabilities 28,650 Total liabilities 315,944 NET POSITION Net investment in capital assets 804,713 Unrestricted 13,213,697 Total net position $ 14,018,410 CITY OF ROSEMEAD Statement of Net Position Proprietary Funds June 30, 2025 See accompanying Notes to the Basic Financial Statements 63 Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds Governmental Activities Internal Service Funds OPERATING REVENUES Miscellaneous $ 22,933 Total operating revenues 22,933 OPERATING EXPENSES Contractual services 86,318 Depreciation and amortization 77,618 Total operating expenses 163,936 Operating income (loss) (141,003) NONOPERATING REVENUES (EXPENSES) Interest and fiscal charges (20,844) Use of money and property 607,581 Total nonoperating revenues (expenses) 586,737 Income (loss) before transfers 445,734 Transfers in 900,000 Change in net position 1,345,734 Net position-beginning 12,672,676 Net position-ending $ 14,018,410 CITY OF ROSEMEAD Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds For the Year Ended June 30, 2025 See accompanying Notes to the Basic Financial Statements 64 Statement of Cash Flows - Proprietary Funds Governmental Activities Internal Service Funds CASH FLOWS FROM OPERATING ACTIVITIES Payments to suppliers and service providers $ (17,800) Other receipts (payments) 183,914 Net cash provided by (used for) operating activities 166,114 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers from other funds 900,000 Net cash provided by (used for) noncapital financing activities 900,000 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and construction of capital assets (717,964) Principal paid on capital debt (109,623) Interest paid on capital debt (16,112) Net cash provided by (used for) capital and related financing activities (843,699) CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments 580,020 Net cash provided by (used for) investing activities 580,020 Net increase (decrease) in cash and cash equivalents 802,435 Cash and cash equivalents-beginning 12,537,331 Cash and cash equivalents-ending $ 13,339,766 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES Operating income (loss)$ (141,003) Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities: Depreciation/amortization expense 77,618 (Increase) decrease in accounts receivable (5,000) Increase (decrease) in accounts payable 234,499 Total adjustments 307,117 Net cash provided by (used for) operating activities $ 166,114 SCHEDULE OF NON-CASH NONCAPITAL, CAPITAL, AND INVESTING ACTIVITIES Subscription proceeds $ (152,770) Purchase of capital assets on account $ (26,404) CITY OF ROSEMEAD Statement of Cash Flows Proprietary Funds For the Year Ended June 30, 2025 See accompanying Notes to the Basic Financial Statements 65 THIS PAGE INTENTIONALLY LEFT BLANK 66 Fiduciary Fund Financial Statements 67 THIS PAGE INTENTIONALLY LEFT BLANK 68 Statement of Fiduciary Net Position - Fiduciary Funds Private Purpose Trust Fund ASSETS Cash and investments $ 4,748,224 Receivables: Accrued interest 30,368 Notes and loans 201,314 Prepaid costs 86,139 Total assets 5,066,045 DEFERRED OUTFLOWS OF RESOURCES Deferred charge on refunding 99,210 Total deferred outflows of resources 99,210 LIABILITIES Accrued interest 163,105 Due to other governments 470,613 Bonds payable - due within one year 1,305,000 Bonds payable - due in more than one year 13,844,354 Total liabilities 15,783,072 NET POSITION (DEFICIT) Restricted for the dissolution of the former RDA (10,617,817) Total net position (deficit)$ (10,617,817) CITY OF ROSEMEAD Statement of Fiduciary Net Position Fiduciary Funds June 30, 2025 See accompanying Notes to the Basic Financial Statements 69 Statement of Changes in Fiduciary Net Position - Fiduciary Funds Private Purpose Trust Fund ADDITIONS Intergovernmental $ 2,517,914 Use of money and property 162,445 Total additions 2,680,359 DEDUCTIONS Administrative 103,215 Interest and fiscal charges 577,014 Contributions to other governments 761,871 Total deductions 1,442,100 Net increase (decrease) in fiduciary net position 1,238,259 Net position-beginning (11,856,076) Net position-ending $ (10,617,817) CITY OF ROSEMEAD Statement of Changes in Fiduciary Net Position Fiduciary Funds For the Year Ended June 30, 2025 See accompanying Notes to the Basic Financial Statements 70 Notes to The Financial Statements 71 THIS PAGE INTENTIONALLY LEFT BLANK 72 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. CITY OF ROSEMEAD Notes to Financial Statements For the Year Ended June 30, 2025 504 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 73 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 government-wide financial statements. These statements display information about major funds individually and non-major funds in the aggregate for governmental and enterprise funds. Fiduciary statements include financial information for fiduciary funds and similar component units. Fiduciary funds of the City primarily represent assets held by the City in custodial capacity for other individuals or organizations. 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. CITY OF ROSEMEAD Notes to Financial Statements For the Year Ended June 30, 2025 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 74 Revenue recognition is subject to the measurable and available criteria for the government funds in the fund financial statements. Exchange transactions are recognized as revenues in the period in which they are earned (i.e., the related goods or services are provided). Locally imposed derived tax revenues are recognized as revenues in the period in which the underlying exchange transaction on which they are based takes place. Imposed non-exchange transactions are recognized as revenues in the period for which they were imposed. If the period of use is not specified, they are recognized as revenues when an enforceable legal claim to the revenues arises or when they are received, whichever occurs first. Government-mandated and voluntary non- exchange transactions are recognized as revenues when all applicable eligibility requirements have been met. In the fund financial statements, governmental funds are presented using the current financial resources measurement focus. This means that only current assets and current liabilities are generally included on their balance sheets. The reported fund balance (net current assets) is considered to be a measure of "available spendable resources." Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of "available spendable resources" during a period. Non-current portions of long-term receivables due to governmental funds are reported on their balance sheets in spite of their spending measurement focus. However, special reporting treatments are used to indicate that they should not be considered "available spendable resources," since they do not represent net current assets. Recognition of governmental fund type revenues represented by noncurrent receivables are deferred until they become current receivables. Because of their spending measurement focus, expenditure recognition for governmental fund types excludes amounts represented by noncurrent liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities. Amounts expended to acquire capital assets are recorded as expenditures in the year that resources were expended, rather than as fund assets. The proceeds of long-term debt are recorded as other financing sources rather than as a fund liability. Amounts paid to reduce long-term indebtedness are reported as fund expenditures. When both restricted and unrestricted resources are combined in a fund, expenditures are considered to be paid first from restricted resources, and then from unrestricted resources. Proprietary Funds Proprietary fund financial statements include a Statement of Net Position, a Statement of Revenues, Expenses and Changes in Net Position, and a Statement of Cash Flows for all proprietary funds. Proprietary funds are accounted for using the “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the Statement of Net Position. The Statement of Revenues, Expenses, and Changes in Net Position presents increases (revenue) and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which liability is incurred. Operating revenues in the proprietary funds are those revenues that are generated from the primary operations of the fund. All other revenues are reported as nonoperating revenues. Operating expenses are those expenses that are essential to the primary operations of the fund. All other expenses are reported as nonoperating expenses. 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. CITY OF ROSEMEAD Notes to Financial Statements For the Year Ended June 30, 2025 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 75 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. ◦HOME Program Fund – Accounts for the City’s portion of the funds received through HUD for various housing projects 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. E. Cash Equivalents For purposes of the statement of cash flows, cash equivalents are defined as short-term, highly liquid investments that are both readily convertible to known amounts of cash or so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Cash equivalents also represent the proprietary CITY OF ROSEMEAD Notes to Financial Statements For the Year Ended June 30, 2025 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 76 funds' share in the cash and investment pool of the City. 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 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 CITY OF ROSEMEAD Notes to Financial Statements For the Year Ended June 30, 2025 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 77 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 on the basis of an estimation of likelihood of future settlement through cash or noncash means 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. 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 – Encompass the portion of net fund resources reflecting the government’s intended use of resources. Assignment of resources can be done by the highest level of decision-making or by a official designated for that purpose. The Director of Finance has been given authority by the City Council to assign funds for the City of Rosemead. •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. J. 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. CITY OF ROSEMEAD Notes to Financial Statements For the Year Ended June 30, 2025 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 78 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. CalPERS audited financial statements are publicly available reports that can be obtained at CalPERS’ website, at www.calpers.ca.gov. Copies of the PARS annual financial report may be obtained from PARS, 4350 Von Karman Avenue, Suite 100, Newport Beach, California 92660. GASB 68 requires that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used. CalPERS-Cost sharing Multiple-Employer Plan: Valuation Date June 30, 2023 Measurement Date June 30, 2024 Measurement Period July 1, 2023 to June 30, 2024 PARS-Agent, Multiple Employer Plan: Valuation Date June 30, 2024 Measurement Date June 30, 2025 Measurement Period July 1, 2024 to June 30, 2025 L. Other Post-Employment Benefit Plans (OPEB) For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s plan (OPEB Plan), the assets of which are held by Public Agency Retirement Services (PARS), and additions to/ deductions from the OPEB Plan’s fiduciary net position have been determined by an independent actuary. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value. Generally accepted accounting principles require that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following time frames are used: Valuation Date June 30, 2023 Measurement Date June 30, 2024 Measurement Period July 1, 2023 to June 30, 2024 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. CITY OF ROSEMEAD Notes to Financial Statements For the Year Ended June 30, 2025 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 79 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 i n t a n g i b l e r i g h t - t o - u s e l e a s e a s s e t ( l e a s e a s s e t ) i n t h e g o v e r n m e n t - w i d e f i n a n c i a l s t a t e m e n t s . A t t h e 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. S u b s e q u e n t l y , t h e l e a s e a s s e t i s a m o r t i z e d o n a s t r a i g h t - l i n e b a s i s o v e r i t s u s e f u l l i f e . K e y e s t i m a t e s a n d judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments. •The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases. •The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise. CITY OF ROSEMEAD Notes to Financial Statements For the Year Ended June 30, 2025 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 80 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 a n d a d e f e r r e d i n f l o w o f r e s o u r c e s i n t h e g o v e r n m e n t - w i d e a n d g o v e r n m e n t a l f u n d f i n a n c i a l s t a t e m e n t s . At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term. Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, if applicable, (2) lease term, and (3) lease receipts. •The City determines that the interest component of the lessor leases are not material, and therefore are recorded with 0% interest. •The lease term includes the noncancellable period of the lease. Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee. The City monitors changes in circumstances that would require a remeasurement of its lease, and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable. P. Subscription-Based Information Technology Arrangements (SBITA) The City is a subscriber for noncancellable subscriptions of information technology services. The City recognizes a s u b s c r i p t i o n l i a b i l i t y a n d a n i n t a n g i b l e r i g h t - t o - u s e s u b s c r i p t i o n a s s e t ( s u b s c r i p t i o n a s s e t ) i n t h e g o v e r n m e n t - 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 s t r a i g h t - l i n e b a s i s o v e r i t s u s e f u l l i f e . Key estimates and judgments related to subscriptions include how the City determines (1) the discount rate it uses to discount the expected subscription payments to present value, (2) lease term, and (3) subscription payments. •The City uses the interest rate charged by the vendor as the discount rate. When the interest rate charged by the vendor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for subscriptions. •The subscription term includes the noncancellable period of the subscription. Subscription payments included in the measurement of the subscription liability are composed of fixed payments that the City is reasonably certain to exercise. CITY OF ROSEMEAD Notes to Financial Statements For the Year Ended June 30, 2025 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 81 The City monitors changes in circumstances that would require a remeasurement of its subscriptions and will remeasure the subscription asset and liability if certain changes occur that are expected to significantly affect the amount of the subscription liability. Subscription assets are reported with other capital assets and subscription liabilities are reported with long-term debt on the statement of net position. Q. Changes in Accounting Principles and New GASB Pronouncements The following Government Accounting Standards Board (GASB) pronouncements were effective for and/or early implemented for the fiscal year ended June 30, 2025: 1. GASB Statement No. 101, Compensated Absences The requirements of this Statement will improve financial reporting by implementing a unified recognition and measurement model that will result in a liability for compensated absences that more appropriately reflects when a government incurs an obligation. Establishing the unified model will result in consistent application to any type of compensated absence and will eliminate potential comparability issues between governments that offer different types of leave. This Statement will also result in a more robust estimate of the amount of compensated absences that a government will pay or settle, which will enhance the relevance and reliability of information about the liability for compensated absences. 2. GASB Statement No. 102, Certain Risk Disclosures The requirements of this Statement will improve financial reporting by providing users of financial statements with essential information that currently is not often provided. The disclosures will provide users with timely information regarding certain concentrations or constraints and related events that have occurred or have begun to occur that make a government vulnerable to a substantial impact. As a result, users will have better information with which to understand and anticipate certain risks to a government’s financial condition. Management has assessed the impact of this Statement on the City's financial statements and determined that it did not have a material impact. NOTE 2: STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY A. Violations of Legal and Contractual Provisions On the Excess of expenditures over appropriations describes a budgetary violation that occurred for the year ended June 30, 2025. It also explains the provision provided by law that was used to remedy the violation. Excess of Expenditures over Appropriations For the year ended June 30, 2025, expenditures exceeded appropriations in the HDC Housing Fund by $15,819. B. Deficit Fund Balances/Net Position At June 30, 2025, the following funds report deficit fund balances or net position: Fund Name Fund Type Deficit Cause Community Development Block Grant Nonmajor Special Revenue Fund $ (58,312) (a) Measure R CP Nonmajor Capital Projects Fund $ (163,554) (a) (a) Deficit due to timing differences between grant receipts and disbursements, and is expected to be eliminated through future grant revenues. CITY OF ROSEMEAD Notes to Financial Statements For the Year Ended June 30, 2025 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 82 NOTE 3: CASH AND INVESTMENTS Cash and investments held by the City were comprised of the following at June 30, 2025: Statement of Net Position Cash and investments $ 87,409,331 Statement of Fiduciary Net Position Cash and cash equivalents 4,748,224 Total cash and investments $ 92,157,555 Cash on hand $ 3,148 Deposits with financial institutions 3,999,396 Investments 88,155,010 Total cash and investments $ 92,157,554 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. Authorized by Maximum Maximum Investment Types Investment Maximum Percentage Investment Authorized by State Law Policy Maturity *of Portfolio *in One Issuer * U.S. Treasury obligations Yes 5 years None None U.S. agency securities Yes 5 years 70%35% Bankers acceptances Yes 180 days 20%30% Commercial paper Yes 180 days 15%10% Certificates of deposit (nonnegotiable)Yes 5 years 30%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. CITY OF ROSEMEAD Notes to Financial Statements For the Year Ended June 30, 2025 83 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: Remaining Maturity (in Months) 12 Months 13 to 36 37 to 60 Investment Type Total or Less Months Months U.S. agency securities $ 7,916,386 $ 1,344,629 $ – $ 6,571,757 Certificates of deposit (negotiable) 15,540,714 745,913 1,245,444 13,549,357 Medium-term notes 6,690,239 3,030,844 484,755 3,174,640 Municipal bonds 993,309 993,309 – – Money market mutual funds 338,316 338,316 – – Local Agency Investment Fund 56,676,046 56,676,046 – – Total $ 88,155,010 $ 63,129,057 $ 1,730,199 $ 23,295,754 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 Exempt or Investment Type Total Legal Rating Aaa Aa A A-Not Rated U.S. agency securities $ 7,916,386 Exempt $ 7,916,386 $ — $ — $ — $ — Cert. of deposit (negotiable) 15,540,714 Not Rated — — — — 15,540,714 Medium-term notes 6,690,239 A 1,569,881 980,860 3,740,221 399,277 — Municipal bonds 993,309 A — 993,309 — — — Money market mutual funds 338,316 Not Rated — — — — 338,316 Local Agency Investment Fund 56,676,046 Not Rated — — — — 56,676,046 Total $ 88,155,010 $ 9,486,267 $ 1,974,169 $ 3,740,221 $ 399,277 $ 72,555,076 D. Concentration of Credit Risk The investment policy of the City contains certain limitations on the amount that can be invested in any one issuer. Investments in any one issuer (other than U.S. Treasury securities, mutual funds, and external investment pools) that represent 5% or more of total As of June 30, 2025 the City did not have any investments in one issuer greater than 5%. CITY OF ROSEMEAD Notes to Financial Statements For the Year Ended June 30, 2025 NOTE 3: CASH AND INVESTMENTS (CONTINUED) 84 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 party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The fair value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. As of June 30, 2025, the City had deposits with financial institutions in excess of federal depository insurance limits by $3,749,396 that were held in collateralized accounts. 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 Loans receivable consisted of the following at June 30, 2025: Balance Balance July 1, 2024 Additions Deletions June 30, 2025 San Gabriel Valley Water Co. Loan Phase I $ 24,690 $ – $ 8,230 $ 16,460 San Gabriel Valley Water Co. Loan Phase II 12,346 – 4,115 8,231 Rio Hondo Community Development Co. Loan 227,086 – – 227,086 Residential Rehabilitation Loan Program 203,450 108,320 – 311,770 Rio Hondo Community Development Co. Loan (275-12025) 214,615 – – 214,615 Home Improvements 2,591,570 – 51,125 2,540,445 Home Ownership Assistance Program for Low Income – 1,560,020 – 1,560,020 First Time Home Buyers Program 515,200 – – 515,200 Total $ 3,788,957 $ 1,668,340 $ 63,470 $ 5,393,827 CITY OF ROSEMEAD Notes to Financial Statements For the Year Ended June 30, 2025 NOTE 3: CASH AND INVESTMENTS (CONTINUED) 85 1. San Gabriel Valley Water Company Phase I The City has an outstanding loan with the San Gabriel Valley Water Company (Phase I) 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, 2025 is $16,460. 2. San Gabriel Valley Water Company Phase II 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, 2025 is $8,231. 3. 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 $441,207. 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. 4. 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. 5. 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, 2025 is $2,540,445. 6. 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, 2025 is $515,200. CITY OF ROSEMEAD Notes to Financial Statements For the Year Ended June 30, 2025 NOTE 4: NOTES, LOANS, AND LEASES RECEIVABLE (CONTINUED) 86 7. 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, 2025 is $311,770. 8. Home Ownership Assistance Program for Low Income The City used HOME funds to provide qualifying homeowners with subsidy to purchase residential property for low income. The loans range from $312,000 to $312,005. The loan term is 20 years, and is forgivable after 20 years. There is no interest rate applicable to the loan. The amount outstanding as of June 30, 2024 is $1,560,020. 9. 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, 2025, the value of the lease receivable and deferred inflow of resources is $98,357. The City recognized rental revenue of $880,880 during the fiscal year which included $43,715 related to the amortization of the deferred inflow and $837,165 for other short term leases not included in the measurement of the lease receivable. Lease Lease Lease Lease Type Term Range Receivable Revenue Interest Land - cell towers 5 years $ 98,357 $ 43,715 $ — NOTE 5: INTERFUND RECEIVABLE, PAYABLE AND TRANSFERS A. Due To/From Other Funds Receivable Fund Payable Fund Amount General fund Nonmajor governmental funds $ 466,372 General fund HOME fund 219,930 Total $ 686,302 Due to/due from other funds for the year ending June 30, 2025, consisted of $686,302 for short-term loans made to the Home Fund and 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 $ — $ 900,000 $ 900,000 Nonmajor governmental funds 480,414 — 480,414 Total $ 480,414 $ 900,000 $ 1,380,414 The General Fund transferred $900,000 into the internal service funds for various operating and capital improvement programs and projects. In addition, the nonmajor governmental funds transferred $480,414 to the CITY OF ROSEMEAD Notes to Financial Statements For the Year Ended June 30, 2025 NOTE 4: NOTES, LOANS, AND LEASES RECEIVABLE (CONTINUED) 87 General Fund for the recognition of previously restricted American Rescue Plan Act monies for general governmental usage. 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, 2025, the total value of the lease liability was $120,891. 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%. The City has also entered into various lease agreement as lessee for the acquisition and use of copiers. The terms of the 6 leasing arrangements are 5 years. As of June 30, 2025, the total value of lease liability was $90,252. The City is required to make monthly principal payments of $328. The leases have an interest rate of 5.05%. Information on the lease assets as of June 30, 2025 are as follows: Governmental Activities Lease Type Amount of Leased Capital Assets Accumulated Amortization Copiers $ 104,706 $ 15,706 Vehicle Lease 756,807 666,659 $ 861,513 $ 682,365 Lease activities and the future principal and interest lease payments as of June 30, 2025, were as follows: Balance Balance Due Within June 30, 2024 Additions Deletions June 30, 2025 One Year Lease liability $ 245,037 $ 104,706 $ 138,600 $ 211,143 $ 85,526 The future principal and interest lease payments as of June 30, 2025, were as follows: Vehicles: Governmental Activities Fiscal Year Ending June 30,Principal Interest Total 2026 $ 65,995 $ 8,989 $ 74,984 2027 54,896 2,697 57,593 Totals $ 120,891 $ 11,686 $ 132,577 CITY OF ROSEMEAD Notes to Financial Statements For the Year Ended June 30, 2025 NOTE 5: INTERFUND RECEIVABLE, PAYABLE AND TRANSFERS (CONTINUED) 88 Copiers: Governmental Activities Fiscal Year Ending June 30,Principal Interest Total 2026 $ 19,531 $ 4,110 $ 23,641 2027 20,540 3,100 23,640 2028 21,602 2,039 23,641 2029 22,718 922 23,640 2030 5,861 49 5,910 Totals $ 90,252 $ 10,220 $ 100,472 B. Subscription-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, 2025, the total value of the subscription liability was $43,147. The City is required to make annual principal and interest payments of ranging from $8,601 to $34,783. The subscriptions have interest rates ranging from 0.39% to 2.35%. Information on the subscription assets as of June 30, 2025 are as follows: Governmental Activities Subscription Type Amount of Subscription Assets Accumulated Amortization Software as a service $ 240,800 $ 138,953 Subscription activities and the future principal and interest subscription payments as of June 30, 2025, were as follows: Governmental Activities Fiscal Year Ending June 30,Principal Interest Total 2026 $ 14,497 $ 34,783 $ 49,280 2027 28,650 23,096 51,746 Total $ 43,147 $ 57,879 $ 101,026 Balance Balance Due Within Jun 30, 2024 Additions Deletions Jun 30, 2025 One Year Subscription liability $ 6,700 $ 73,970 $ 37,523 $ 43,147 $ 14,497 CITY OF ROSEMEAD Notes to Financial Statements For the Year Ended June 30, 2025 NOTE 6: LEASES AND SUBSCRIPTION PAYABLE (CONTINUED) 89 NOTE 7: CAPITAL ASSETS A summary of the changes in capital assets for the fiscal year ended June 30, 2025, were as follows: Balance Balance June 30, 2024 Additions Deletions Transfers June 30, 2025 Governmental activities: Capital assets, not being depreciated/amortized Land $ 6,560,869 $ — $ — $ — $ 6,560,869 Construction-in-progress 2,343,852 4,862,669 — (3,558,565) 3,647,956 Total capital assets, not being depreciated/amortized 8,904,721 4,862,669 — (3,558,565) 10,208,825 Capital assets, being depreciated/amortized Buildings 25,466,127 27,728 — 553,472 26,047,327 Improvements other than buildings 6,226,382 — — 495,573 6,721,955 Machinery and equipment 978,340 11,462 — — 989,802 Autos and trucks 1,363,405 153,556 — — 1,516,961 Furniture and office equipment 764,425 — — — 764,425 Subscription assets 88,030 152,770 — — 240,800 Lease assets 756,807 104,706 — — 861,513 Infrastructure 77,462,485 — — 2,509,520 79,972,005 Total capital assets, being depreciated/amortized 113,106,001 450,222 — 3,558,565 117,114,788 Less accumulated depreciation/amortization Buildings (12,627,216) (505,933) — — (13,133,149) Improvements other than buildings (3,175,411) (340,049) — — (3,515,460) Machinery and equipment (506,037) (90,914) — — (596,951) Autos and trucks (1,236,011) (86,745) — — (1,322,756) Furniture and office equipment (759,265) (2,814) — — (762,079) Subscription assets (81,806) (57,147) — — (138,953) Lease assets (571,160) (111,205) — — (682,365) Infrastructure (49,138,779) (1,773,934) — — (50,912,713) Total accumulated depreciation/amortization (68,095,685) (2,968,741) — — (71,064,426) Total capital assets, being depreciated/amortized, net 45,010,316 (2,518,519) — 3,558,565 46,050,362 Total governmental activities capital assets $ 53,915,037 $ 2,344,150 $ — $ — $ 56,259,187 Depreciation and amortization expense was charged to functions/programs of the primary government as follows: General government $ 10,175 Public safety 19,838 Public works 2,440,417 Parks and recreation 197,573 Community services 223,120 Internal service funds 77,618 Total depreciation/amortization expense $ 2,968,741 CITY OF ROSEMEAD Notes to Financial Statements For the Year Ended June 30, 2025 NOTE 7: CAPITAL ASSETS 90 Compensated absences activities for the year ended June 30, 2025, is as follows: Balance Amount June 30, 2024 Balance Due Within as restated Net Change June 30, 2025 One Year $ 1,899,968 $ 356,883 $ 2,256,851 $ 300,396 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. 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. CITY OF ROSEMEAD Notes to Financial Statements For the Year Ended June 30, 2025 NOTE 8: COMPENSATED ABSENCES 91 For 2024-25 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 of Rosemead participates in the pollution legal liability insurance program which is available through the Authority. The policy covers sudden and gradual pollution of scheduled property, streets, and storm drains owned by the City of Rosemead. Coverage is on a claims-made basis. There is a $250,000 deductible. The Authority has an aggregate limit of $20 million. 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 $79,251,096. 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 or judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or insured liability coverage in 2024-25. 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: Net Pension Net Pension Deferred Outflows Deferred Inflows Pension Liability (Asset)of Resources of Resources Expense Miscellaneous Plan $ 10,796,104 $ – $ 3,350,157 $ 253,603 $ 584,130 PARS Retirement Enhancement Plan – (500,884) 187,268 17,082 101,592 Total pension plans $ 10,796,104 $ (500,884) $ 3,537,425 $ 270,685 $ 685,722 CITY OF ROSEMEAD Notes to Financial Statements For the Year Ended June 30, 2025 NOTE 9: RISK MANAGEMENT 92 B. Defined Benefit Pension Plan – CalPERS 1. Plan Description, Benefits Provided, and Employees Covered The plan is a public agency cost-sharing multiple employer defined benefit pension plan administered by the California Public Employees’ Retirement System (CalPERS). A full description of the pension plan regarding number of employees covered, benefit provisions, assumptions (for funding, but not accounting purposes), and membership information are listed in the plan’s June 30, 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 CalPERS’ audited financial statements are publicly available reports that can be obtained at CalPERS’ website. 2. Contribution Description Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions. Plan contributions for the year equaled $1,479,792. 3. Actuarial Methods and Assumptions Used to Determine Total Pension Liability The June 30, 2023 valuation was rolled forward to determine the June 30, 2024 total pension liability, based on the following actuarial methods and assumptions: Actuarial Cost Method Entry Age Normal in accordance with the requirement of GASB Actuarial Assumptions: Discount Rate 6.90% Inflation 2.30% Payroll Growth 2.75% Salary Increases Varies by Entry Age and Service Investment Rate of Return 7.00% Mortality Rate Table Derived using CalPERS' Membership Data for all Funds Post Retirement Benefit Increase Contract COLA up to 2.30% until Purchasing Power Protection Allowance Floor on Purchasing Power applies 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. CITY OF ROSEMEAD Notes to Financial Statements For the Year Ended June 30, 2025 NOTE 10: DEFINED BENEFIT PENSION PLANS 93 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: Assumed Asset Asset Class Allocation Real Return Global equity-cap-weighted 30.00 % 4.54 % Global equity-non-cap-weighted 12.00 % 3.84 % Private equity 13.00 % 7.28 % Treasury 5.00 % 0.27 % Mortgage-backed securities 5.00 % 0.50 % Investment grade corporates 10.00 % 1.56 % High yield 5.00 % 2.27 % Emerging market debt 5.00 % 2.48 % Private debt 5.00 % 3.57 % Real assets 15.00 % 3.21 % Leverage -5.00 % -0.59 % 1) An expected inflation of 2.30% used for this period. 2) Figures are based on the 2021-22 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 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 earnings on pension plan investments 5-year straight-line amortization 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. CITY OF ROSEMEAD Notes to Financial Statements For the Year Ended June 30, 2025 NOTE 10: DEFINED BENEFIT PENSION PLANS 94 The EARSL for the plan for the measurement period ending June 30, 2024 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 $10,796,104, as of June 30, 2025 (measurement date: June 30, 2024). The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The City’s proportionate share of the Miscellaneous Plan for the as of June 30, 2023 and June 30, 2024 (measurement period), are as follows: Proportion - June 30, 2023 0.0871% Proportion - June 30, 2024 0.0890% Change 2.1814% 8. Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the collective net pension liability calculated using a discount rate of 6.90%, as well as what the collective net pension liability would be if it were calculated using a discount rate that is 1-percentage- point lower (5.90%) or 1-percentage-point higher (7.90%) than the current rate: Discount Rate Current Discount Rate -1%Discount Rate +1% (5.90%)(6.90%)(7.90%) Proportionate share of net pension liability/(asset)$ 16,779,283 $ 10,796,104 $ 5,871,067 9. Pension Expense and Deferred Outflows and Deferred Inflows of Resources For the fiscal year ended June 30, 2025, the City recognized $584,130 in pension expense. The following table presents deferred outflows and deferred inflows of resources related to pensions as of the June 30, 2025: Deferred Outflows Deferred Inflows of Resources of Resources Contributions subsequent to the measurement date $ 1,479,792 $ — Changes of assumptions 277,482 — Differences between expected and actual experience 933,422 36,421 Net difference between projected and actual earnings on pension plan investments 621,519 — Adjustments due to differences in proportions 37,942 1,085 Difference in proportionate share — 216,097 Total $ 3,350,157 $ 253,603 CITY OF ROSEMEAD Notes to Financial Statements For the Year Ended June 30, 2025 NOTE 10: DEFINED BENEFIT PENSION PLANS 95 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 $1,479,792 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 Outflows/(Inflows) Fiscal year ended June 30,of Resources 2026 $ 486,098 2027 1,339,604 2028 4,047 2029 (212,987) Total $ 1,616,762 C. PARS Retirement Enhancement Plan 1. Plan Description The Plan is an agent, multiple-employer supplemental employee defined benefit pension plan (the Plan II) 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, 2023, 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 CalPERS benefit may not exceed 90% of final compensation. The Plan II includes a pre-retirement death benefit for those eligible employees who die while actively employed with the City and meet the age and service eligibility requirements for a supplemental retirement benefit. The benefit will be paid to a surviving spouse or domestic partner as a life annuity equal to the employee's supplemental retirement benefit actuarially reduced as if the employee had elected a 100% joint-and-survivor annuity. The Plan is closed to all employees in the classes hired on or after July 1, 2010. CITY OF ROSEMEAD Notes to Financial Statements For the Year Ended June 30, 2025 NOTE 10: DEFINED BENEFIT PENSION PLANS 96 The Plan II’s provisions and benefits in effect at June 30, 2025, (measurement date) are summarized as follows: 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, 2024 (valuation date), the following employees were covered by the benefit terms: Retirees and beneficiaries 19 Terminated vested and other inactives 0 Active members 21 Total 40 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, 2025 (the measurement date), the employer’s contribution rate is 4.8 percent of annual payroll. Employer contribution rates may change if plan contracts are amended. Employer Contributions for the measurement period ended June 30, 2025 are $78,797. 5. 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, using an annual actuarial valuation as of June 30, 2024. Total Pension Plan Fiduciary Net Pension Plan fiduciary net Liability Net Position Liability/(Asset)position as a % of (a)(b)(c) = (a) - (b)total pension asset Balance at June 30, 2025 $ 3,021,334 $ 3,522,218 $ (500,884) 117 % CITY OF ROSEMEAD Notes to Financial Statements For the Year Ended June 30, 2025 NOTE 10: DEFINED BENEFIT PENSION PLANS 97 6. Actuarial Methods and Assumptions The following actuarial methods and assumptions were used in the June 30, 2024, 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, 2024 19 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% Mortality Consistent with Non-Industrial rates used to value the Miscellaneous Public Agency CalPERS Pension Plans 7. 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. CITY OF ROSEMEAD Notes to Financial Statements For the Year Ended June 30, 2025 NOTE 10: DEFINED BENEFIT PENSION PLANS 98 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. June 30, 2024 June 30, 2025 Discount rate 6.50%6.50% Long-term expected rate of return, net of investment expense 6.50%6.50% Municipal bond rate N/A N/A The Plan II’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, 2025. Long-Term Long-Term Expected Expected Arithmetic Geometric Target Real Rate Real Rate Asset Class Index Allocation of Return of Return US Cash BAML 3-Month T-Bills 9.50 % 0.94 % 0.91 % US Core Fixed Income (Aggregate)Bloomberg Barclays Aggregate 31.91 % 2.52 % 2.36 % 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 % CITY OF ROSEMEAD Notes to Financial Statements For the Year Ended June 30, 2025 NOTE 10: DEFINED BENEFIT PENSION PLANS 99 8. 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, 2025, using an annual actuarial valuation as of June 30, 2024. Total OPEB Plan Fiduciary Net OPEB Liability Net Position Liability/(Asset) (a)(b)(c) = (a) - (b) Balance at June 30, 2024 $ 2,828,756 $ 3,368,680 $ (539,924) Changes recognized for the measurement period: Service cost 21,957 – 21,957 Interest on total pension liability 178,026 – 178,026 Effect of economic/demographic 219,877 – 219,877 Effect of assumptions changes or inputs Benefit payments (227,282) (227,282) – Employer contributions – 78,797 (78,797) Net investment income – 303,248 (303,248) Administrative expense – (1,225) 1,225 Net changes during 2023-24 192,578 153,538 39,040 Balance at June 30, 2025 $ 3,021,334 $ 3,522,218 $ (500,884) 9. 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)$ (190,027) $ (500,884) $ (765,524) CITY OF ROSEMEAD Notes to Financial Statements For the Year Ended June 30, 2025 NOTE 10: DEFINED BENEFIT PENSION PLANS 100 10. Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions For the year ended June 30, 2025, the City recognized pension expense of $101,592. At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Changes of assumptions $ – $ (465) Differences between expected and actual experience 187,268 – Net difference between projected and actual earnings on pension plan investments – (16,617) Total $ 187,268 $ (17,082) Amounts currently reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Deferred Outflows/ (Inflows) Fiscal year ended June 30,of Resources 2026 $ 185,276 2027 15,976 2028 (13,253) 2029 (17,813) Total $ 170,186 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 4.89% percent of the employee’s compensation. In addition, each participant is required to contribute 4.89% of their salary. During the current fiscal year, the City contributed $78,797 to the plan. CITY OF ROSEMEAD Notes to Financial Statements For the Year Ended June 30, 2025 NOTE 10: DEFINED BENEFIT PENSION PLANS 101 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 CalPERS Health Plan (HC Plan) for eligible retirees and surviving spouses in receipt of a pension benefit from CalPERS. The minimum required employer contribution is statutorily set under PEMHCA and is scheduled to increase in the future based on the medical portion of CPI. Minimum required employer contributions for the calendar years 2024 and 2025 were $157 and $158, respectively. Inactive members currently receiving benefits 30 Inactive members entitled to but not yet receiving benefits 9 Active members 77 Total 116 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, 2024, the City recognized a total of $148,324 as a reduction to the net OPEB liability. CITY OF ROSEMEAD Notes to Financial Statements For the Year Ended June 30, 2025 NOTE 12: POST-EMPLOYMENT BENEFIT PLAN 102 D. Net OPEB Liability The City’s net OPEB liability was measured as of June 30, 2024, 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: Valuation Date June 30, 2023 Discount Rate 5.50% Long-term Rate of Return 5.50% Cost Method Entry Age Normal Latest Experience Study Date No experience study was performed for the Plan. the CalPERS 2000-2019 Experience Study was the basis for assumptions Mortality CalPERS 2000-2019 Experience Study. Mortaility projected fully generational with Scale MP-2021 Salary Scale Aggregate 2.75% per year Inflation 2.50% PEMHCA Minimum Increase 3.50% annually Participation Rate PEMHCA Minimum - 70% currently covered; 50% currently waived $500 - 80% current covered; 65% currently waived $1,000 - 100% currently covered; 80% currently waived Merit - CalPERS 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 Long-Term 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, 2024 as provided by PARS-Moderate, are summarized in the following table: Asset Class Target Allocation PARS-Moderate Long-Term Expected Real Rate of Return Global Equity 50.00 % 4.56 % Fixed Income 45.00 % 0.78 % Cash 5.00 % (0.50) % CITY OF ROSEMEAD Notes to Financial Statements For the Year Ended June 30, 2025 NOTE 12: POST-EMPLOYMENT BENEFIT PLAN (CONTINUED) 103 F. 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 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: Total OPEB Plan Fiduciary Net OPEB Liability Net Position Liability/(Asset) (a)(b)(c) = (a) - (b) Balance at June 30, 2024 $ 4,699,552 $ 4,078,907 $ 620,645 Changes recognized for the measurement period: Service cost 124,465 – 124,465 Interest on total OPEB liability 259,459 – 259,459 Contributions-employer – 148,324 (148,324) Net investment income – 469,692 (469,692) Benefit payments, including refunds of employee contributions (213,150) (213,150) – Administrative expense – (11,270) 11,270 Net changes during 2024-25 170,774 393,596 (222,822) Balance at June 30, 2025 $ 4,870,326 $ 4,472,503 $ 397,823 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, 2024: Discount Rate Current Discount Rate -1%Discount Rate +1% 4.50%5.50%6.50% Plan's net OPEB liability/(asset)$ 987,469 $ 397,823 $ (98,389) CITY OF ROSEMEAD Notes to Financial Statements For the Year Ended June 30, 2025 NOTE 12: POST-EMPLOYMENT BENEFIT PLAN (CONTINUED) 104 I. 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, 2024: Current 1%Heathcare 1% Decrease Trend Rate Increase Plan's net OPEB liability/(asset)$ 95,831 $ 397,823 $ 717,668 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 Karman Ave, Newport Beach, California 92660. K. OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2025, the City recognized OPEB expense of $104,726. As of fiscal year ended June 30, 2025, the City reported deferred outflows of resources related to OPEB from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Contributions subsequent to the measurement date $ 218,936 $ – Changes of assumptions 105,205 11,909 Differences between expected and actual experience – 318,220 Net difference between projected and actual earnings on pension plan investments – 17,557 Total $ 324,141 $ 347,686 CITY OF ROSEMEAD Notes to Financial Statements For the Year Ended June 30, 2025 NOTE 12: POST-EMPLOYMENT BENEFIT PLAN (CONTINUED) 105 The $218,936 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: Deferred Outflows/(Inflows) Fiscal year ended June 30,of Resources 2026 $ (84,591) 2027 39,451 2028 (88,626) 2029 (55,893) 2030 (16,072) Thereafter (36,750) Total $ (242,481) 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. CITY OF ROSEMEAD Notes to Financial Statements For the Year Ended June 30, 2025 NOTE 12: POST-EMPLOYMENT BENEFIT PLAN (CONTINUED) 106 At June 30, 2025, the City reports governmental fund balance classifications as follows: General Fund City Grants Fund HOME Fund Total Nonmajor Funds Total Governmental Funds Nonspendable Notes and loans receivable $ 251,777 $ — $ — $ — $ 251,777 Prepaid costs 137,030 — — 251 137,281 Total nonspendable 388,807 — — 251 389,058 Restricted Community services — — 2,906,636 1,275,945 4,182,581 Low and moderate income housing — — — 378,268 378,268 Public works — — — 22,684,939 22,684,939 Capital projects — — — 7,514,938 7,514,938 Total restricted — — 2,906,636 31,854,090 34,760,726 Committed Reserve 12,446,584 — — — 12,446,584 Capital projects 214,915 — — — 214,915 Total committed 12,661,499 — — — 12,661,499 Assigned Building maintenance 71,617 — — — 71,617 Tree in-lieu 64,421 — — — 64,421 Total assigned 136,038 — — — 136,038 Unassigned 23,841,738 (107,764) — (221,866) 23,512,108 Total fund balances (deficits)$ 37,028,082 $ (107,764) $ 2,906,636 $ 31,632,475 $ 71,459,429 NOTE 15: SUCCESSOR AGENCY On December 29, 2011, the California Supreme Court upheld AB lX 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 lX 26 and added certain new provisions. AB lX 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. CITY OF ROSEMEAD Notes to Financial Statements For the Year Ended June 30, 2025 NOTE 14: FUND BALANCE CLASSIFICATIONS 107 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 $4,748,224, of which $4,747,265 was held as part of the City’s cash pool, and the remaining $959 was held with fiscal agents. B. Long-Term Debt The debt of the Successor Agency as of June 30, 2025 is as follows: Amount Balance Balance Due Within June 30, 2024 Additions Deletions June 30, 2025 One Year Bonds payable Tax Allocation Bonds, Series 2016 $ 15,540,000 $ – $ 1,245,000 $ 14,295,000 $ 1,305,000 Premium 961,148 – 106,794 854,354 – Total $ 16,501,148 $ – $ 1,351,794 $ 15,149,354 $ 1,305,000 Future debt service requirements are as follows: June 30 Principal Interest 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 1,575,000 339,325 2031-2034 7,085,000 589,975 Total $ 14,295,000 $ 2,972,275 1. 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 2006B, 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, 2025, the outstanding balance was $14,295,000. CITY OF ROSEMEAD Notes to Financial Statements For the Year Ended June 30, 2025 NOTE 15: SUCCESSOR AGENCY (CONTINUED) 108 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, 2025 is $17,267,275 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 $2,517,914 and the debt service obligation on the bonds was $1,921,375. NOTE 16: PRIOR PERIOD ADJUSTMENTS A. Change in Accounting Principles For fiscal year ended June 30, 2025, the City implemented GASB Statement No. 101, Compensated Absences, which replaces the previous GASB Statement No. 16, Accounting for Compensated Absences, to update the recognition and measurement guidance for compensated absences. Under this statement, the City is required to change their estimate of compensated absence liability to leave being “more likely than not” rather than a probability. The effect of the implementation of the change in accounting principles resulted in adjustments to and restatement of beginning net position in the governmental activities, as follows: June 30, 2024 Changes in As Previously Accounting June 30, 2024 Reported Principle As Restated Government-wide Governmental activities $ 124,601,682 $ (1,156,541) $ 123,445,141 Total government-wide $ 124,601,682 $ (1,156,541) $ 123,445,141 NOTE 17: 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 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. CITY OF ROSEMEAD Notes to Financial Statements For the Year Ended June 30, 2025 NOTE 15: SUCCESSOR AGENCY (CONTINUED) 109 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 18: SUBSEQUENT EVENTS The City evaluated subsequent events for recognition and disclosure through December 19, 2025, the date on which these financial statements were available to be issued. Management concluded that no material subsequent events have occurred since June 30, 2025, that required recognition or disclosure in these financial statements. CITY OF ROSEMEAD Notes to Financial Statements For the Year Ended June 30, 2025 NOTE 17: BUDGETARY INFORMATION (CONTINUED) 110 Required Supplementary Information 111 THIS PAGE INTENTIONALLY LEFT BLANK 112 Budgetary Comparison Schedules 113 THIS PAGE INTENTIONALLY LEFT BLANK 114 General Fund Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) REVENUES Property taxes $ 23,959,800 $ 23,959,800 $ 24,188,307 $ 228,507 Licenses and permits 3,395,900 3,395,900 4,131,334 735,434 Intergovernmental 591,600 591,600 749,343 157,743 Charges for services 1,109,100 1,109,100 1,347,930 238,830 Use of money and property 1,385,800 1,385,800 2,093,942 708,142 Fines and forfeitures 648,900 648,900 630,021 (18,879) Miscellaneous 32,000 32,000 57,343 25,343 Total revenues 31,123,100 31,123,100 33,198,220 2,075,120 EXPENDITURES Current: General government 5,957,600 5,957,600 5,824,202 133,398 Public safety 13,055,200 13,055,200 12,570,051 485,149 Community development 2,617,300 2,617,300 2,576,011 41,289 Parks and recreation 4,512,950 4,512,950 4,597,211 (84,261) Public works 4,351,300 4,351,300 4,505,604 (154,304) Capital outlay 55,050 269,965 134,412 135,553 Debt service: Principal retirement 144,300 144,300 91,755 52,545 Interest and fiscal charges – – 21,915 (21,915) Total expenditures 30,693,700 30,908,615 30,321,161 587,454 Excess (deficiency) of revenues over (under) expenditures 429,400 214,485 2,877,059 2,662,574 OTHER FINANCING SOURCES (USES) Transfers in – 480,414 480,414 – Transfers out (400,000) (900,000) (900,000) – Lease arrangements entered into – – 104,706 104,706 Total other financing sources (uses) (400,000) (419,586) (314,880) 104,706 Net change in fund balance $ 29,400 $ (205,101) 2,562,179 $ 2,767,280 Fund balance-beginning 34,465,903 Fund balance-ending $ 37,028,082 CITY OF ROSEMEAD Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual General Fund For the Year Ended June 30, 2025 115 City Grants Fund Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) REVENUES Intergovernmental $ 385,000 $ 385,000 $ 279,941 $ (105,059) Use of money and property – – 76,062 76,062 Total revenues 385,000 385,000 356,003 (28,997) EXPENDITURES Current: Public safety – – 27,960 (27,960) Community development 250,000 250,000 – 250,000 Public works 22,000 22,000 16,694 5,306 Capital outlay 113,000 458,925 337,099 121,826 Total expenditures 385,000 730,925 381,753 349,172 Net change in fund balance $ – $ (345,925) (25,750) $ 320,175 Fund balance-beginning (82,014) Fund balance-ending $ (107,764) CITY OF ROSEMEAD Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual City Grants Fund For the Year Ended June 30, 2025 116 American Rescue Plan Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) REVENUES Intergovernmental $ 665,400 $ 665,400 $ 2,771,157 $ 2,105,757 Total revenues 665,400 665,400 2,771,157 2,105,757 EXPENDITURES Current: General government 205,000 205,000 202,998 2,002 Community development 100,400 100,400 19,599 80,801 Public works 180,000 180,000 121,924 58,076 Capital outlay 180,000 4,289,625 2,426,636 1,862,989 Total expenditures 665,400 4,775,025 2,771,157 2,003,868 Net change in fund balance $ – $ (4,109,625) – $ 4,109,625 Fund balance-beginning – Fund balance-ending $ – CITY OF ROSEMEAD Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual American Rescue Plan For the Year Ended June 30, 2025 117 HOME Fund Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) REVENUES Intergovernmental $ 2,889,200 $ 2,889,200 $ 722,815 $ (2,166,385) Use of money and property 19,500 19,500 11,432 (8,068) Total revenues 2,908,700 2,908,700 734,247 (2,174,453) EXPENDITURES Current: Community development 2,209,500 2,209,500 2,007,572 201,928 Total expenditures 2,209,500 2,209,500 2,007,572 201,928 Net change in fund balance $ 699,200 $ 699,200 (1,273,325) $ (1,972,525) Fund balance-beginning 4,179,961 Fund balance-ending $ 2,906,636 CITY OF ROSEMEAD Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual HOME Fund For the Year Ended June 30, 2025 118 Pension Plan 119 THIS PAGE INTENTIONALLY LEFT BLANK 120 Schedules of Proportationate Share of Net Pension Liability Proportionate Share Plan's Fiduciary Proportion of the Proportionate of the Net Pension Net Position as a Reporting Date 1 Net Pension Share of Net Liability as a % of % of the Total as of June 30,Liability Pension Liability Covered Payroll Covered Payroll Pension Liability 2025 0.0890%$ 10,796,104 $ 5,017,695 215.2%79.9% 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% Notes to Schedule of Proportionate Share of the Net Pension Liability Benefit Changes: None Changes of Assumptions: None CITY OF ROSEMEAD Schedules of Proportationate Share of Net Pension Liability As of June 30, for the Last Ten Fiscal Years 121 Schedules of Plan Contributions 2025 2024 2023 2022 Actuarially Determined Contribution $ 1,479,792 $ 1,234,817 $ 1,172,969 $ 1,036,079 Contribution in Relation to the Actuarially Determined Contributions (1,479,792) (1,234,817) (1,172,969) (1,036,079) Contribution Deficiency (Excess)$ – $ – $ – $ – Covered Payroll $ 5,890,095 $ 5,017,695 $ 4,412,785 $ 4,185,828 Contributions as a percentage of Covered Payroll 25.12%24.61%26.58%24.75% Notes to Schedule of Plan Contributions: The actuarial methods and assumptions used to set the actuarially determined contributions for fiscal year 2024-25 were derived from the June 30, 2022 funding valuation report, available on CalPERS' website. Actuarial Cost Method: Entry Age Normal Amortization Method/Period: For details, see June 30, 2022 Funding Valuation Report Asset Valuation Method: Fair value of assets, for details, see June 30, 2022 Funding Valuation Report Inflation: 2.30% Salary Increases: Varies by entry age and service Payroll Growth: 2.80% Investment Rate of Return: 6.80% (net of administrative expenses) Retirement Age: For details, see June 30, 2022 Funding Valuation Report Mortality: For details, see June 30, 2022 Funding Valuation Report CITY OF ROSEMEAD Schedules of Plan Contributions As of June 30, For the Last Ten Fiscal Years 122 2021 2020 2019 2018 2017 2016 $ 1,013,310 $ 1,446,875 $ 1,389,145 $ 1,487,464 $ 1,113,875 $ 1,113,875 (1,013,310) (1,446,875) (1,389,145) (1,487,464) (1,113,875) (1,113,875) $ – $ – $ – $ – $ – $ – $ 3,888,373 $ 3,832,817 $ 3,903,914 $ 3,761,962 $ 3,690,780 $ 3,444,503 26.06%37.75%35.58%39.54%30.18%32.34% CITY OF ROSEMEAD Schedules of Plan Contributions (Continued) As of June 30, 2023, For the Last Ten Fiscal Years 123 Schedule of Changes in the Net Pension Liability/(Asset) and Related Ratios - PARS Retirement Enhancement Plan 2025 2024 2023 2022 Measurement Date 6/30/2025 6/30/2024 6/30/2023 6/30/2022 TOTAL PENSION LIABILITY Service cost $ 21,957 $ 23,129 $ 22,499 $ 24,732 Interest 178,026 179,675 173,711 175,746 Effect of liability gains or losses 219,877 – 120,849 – Effect of assumption changes or inputs – – (1,863) – Benefit payments, including refunds of employee contributions (227,282) (226,723) (221,524) (237,325) Net change in total pension liability 192,578 (23,919) 93,672 (36,847) Total pension liability-beginning 2,828,756 2,852,675 2,759,003 2,795,850 Total pension liability-ending (a) 3,021,334 2,828,756 2,852,675 2,759,003 PLAN FIDUCIARY NET POSITION Contributions-employer 78,797 81,312 75,945 68,424 Net investment income 303,248 336,191 208,826 (459,657) Benefit payments, including refunds of employee contributions (227,282) (226,723) (221,524) (237,325) Administrative expense (1,225) – – – Other changes in fiduciary net position – (1,154) (1,231) (1,280) Net change in fiduciary net position 153,538 189,626 62,016 (629,838) Plan fiduciary net position-beginning 3,368,680 3,179,054 3,117,038 3,746,876 Plan fiduciary net position-ending (b) 3,522,218 3,368,680 3,179,054 3,117,038 Net pension liability/(asset) (a) - (b)$ (500,884) $ (539,924) $ (326,379) $ (358,035) Plan fiduciary net position as a percentage of the total pension liability 116.6%119.1%111.4%113.0% Covered payroll $ 1,610,287 $ 1,566,427 $ 1,663,456 $ 1,618,148 Plan net pension liability/(asset) as a percentage of covered- employee payroll -31.1%-34.5%-19.6%-22.1% 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 124 2021 2020 2019 2018 2017 2016 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 $ 24,070 $ 25,883 $ 25,190 $ 37,502 $ 36,410 $ 45,435 171,039 172,888 170,716 171,215 192,440 191,270 110,471 – 17,567 – (355,400) – – – 32,827 – – – – – – – – – (230,403) (220,611) (206,738) (201,490) (200,693) (218,411) 75,177 (21,840) 39,562 7,227 (327,243) 18,294 2,720,673 2,742,513 2,702,951 2,695,724 3,022,967 3,004,673 2,795,850 2,720,673 2,742,513 2,702,951 2,695,724 3,022,967 75,165 112,649 131,770 140,376 164,389 265,241 660,793 96,972 187,985 175,605 266,884 (2,345) (230,403) (220,611) (206,738) (201,490) (200,693) (218,411) – – – – – – (1,316) (1,441) (1,440) (1,461) (6,848) (2,624) 504,239 (12,431) 111,577 113,030 223,732 41,861 3,242,637 3,255,068 3,143,491 3,030,461 2,806,729 2,764,868 3,746,876 3,242,637 3,255,068 3,143,491 3,030,461 2,806,729 $ (951,026) $ (521,964) $ (512,555) $ (440,540) $ (334,737) $ 216,238 134.0%119.2%118.7%116.3%112.4%92.8% $ 1,780,371 $ 2,300,378 $ 2,238,812 $ 2,178,892 $ 2,414,510 $ 2,344,184 -53.4%-22.7%-22.9%-20.2%-13.9%9.2% 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 125 PARS Retirement Enhancement Plan - Schedule of Contributions 2025 2024 2023 2022 Actuarially Determined Contribution $ 21,930 $ 23,129 $ 22,492 $ 24,747 Contribution in Relation to the Actuarially Determined Contributions (78,797) (81,312) (75,945) (68,424) Contribution Deficiency (Excess)$ (56,867) $ (58,183) $ (53,453) $ (43,677) Covered Payroll $ 1,610,287 $ 1,566,427 $ 1,663,456 $ 1,618,148 Contributions as a percentage of Covered Payroll 4.89%5.19%4.57%4.23% Notes to Schedule of Plan Contributions: The actuarial methods and assumptions used to set the actuarially determined contributions for fiscal year 2024-25 were derived from the June 30, 2022 funding valuation report prepared by Milliman. Actuarial Cost Method: Entry Age Normal Amortization Method/Period: Level dollar, closed period, amortized over 20 years Asset Valuation Method: Fair value of assets Inflation: 2.30% Salary Increases: Varies by entry age and service Payroll Growth: 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. CITY OF ROSEMEAD PARS Retirement Enhancement Plan Schedule of Contributions As of June 30, for the Last Ten Fiscal Years1 126 2021 2020 2019 2018 2017 2016 $ 20,100 $ 25,970 $ 73,864 $ 81,888 $ 88,845 $ 116,244 (75,165) (112,649) (131,770) (140,376) (164,389) (265,241) $ (55,065) $ (86,679) $ (57,906) $ (58,488) $ (75,544) $ (148,997) $ 1,780,371 $ 2,300,378 $ 2,238,812 $ 2,178,892 $ 2,414,510 $ 2,344,184 4.22%4.90%5.89%6.44%6.81%11.31% CITY OF ROSEMEAD PARS Retirement Enhancement Plan Schedule of Contributions (Continued) As of June 30, for the Last Ten Fiscal Years1 127 Schedule of Changes in the Net OPEB Liability/(Asset) and Related Ratios - Safety Plan 2025 2024 2023 2022 Measurement Date 6/30/2024 6/30/2023 6/30/2022 6/30/2021 TOTAL OPEB LIABILITY Service cost $ 124,465 $ 118,873 $ 115,691 $ 116,753 Interest on total OPEB liability 259,459 259,041 250,578 258,626 Actual and expected difference — (168,492) — (106,136) Changes in assumptions — 3,113 — 200,671 Benefit payments, including refunds of employee contributions (213,150) (207,902) (223,257) (223,397) Net change in total OPEB liability 170,774 4,633 143,012 246,517 Total OPEB liability-beginning 4,699,552 4,694,919 4,551,907 4,305,390 Total OPEB liability-ending (a) 4,870,326 4,699,552 4,694,919 4,551,907 PLAN FIDUCIARY NET POSITION Contributions-employer 148,324 155,407 100,859 179,672 Net investment income 469,692 279,950 (607,709) 848,323 Benefit payments (213,150) (207,902) (223,257) (223,397) Administrative expense (11,270) (10,548) (11,901) (11,139) Net change in fiduciary net position 393,596 216,907 (742,008) 793,459 Plan fiduciary net position-beginning 4,078,907 3,862,000 4,604,008 3,810,549 Plan fiduciary net position-ending (b) 4,472,503 4,078,907 3,862,000 4,604,008 Net OPEB liability/(asset) (a) - (b)$ 397,823 $ 620,645 $ 832,919 $ (52,101) Plan fiduciary net position as a percentage of the total OPEB liability 91.8%86.8%82.3%101.1% Covered-employee payroll $ 5,017,695 $ 4,412,785 $ 4,185,828 $ 3,888,373 Plan net OPEB liability/(asset) as a percentage of covered- employee payroll 7.9%14.1%19.9%-1.3% 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 1 Fiscal year 2018 was the first year of implementation; therefore, only eight years are shown. CITY OF ROSEMEAD Schedule of Changes in the Net OPEB Liability/(Asset) and Related Ratios As of June 30, for the Last Ten Fiscal Years1 128 2021 2020 2019 2018 6/30/2020 6/30/2019 6/30/2018 6/30/2017 $ 115,714 $ 155,962 $ 151,419 $ 147,009 249,416 268,709 253,402 237,920 — (479,267) — — — (42,977) — — (201,882) (165,606) (142,897) (119,682) 163,248 (263,179) 261,924 265,247 4,142,142 4,405,321 4,143,397 3,878,150 4,305,390 4,142,142 4,405,321 4,143,397 45,227 97,132 22,063 158,082 136,814 242,596 223,704 336,797 (201,882) (165,606) (142,897) (119,682) (10,252) (9,719) (9,889) (8,925) (30,093) 164,403 92,981 366,272 3,840,642 3,676,239 3,583,258 3,216,986 3,810,549 3,840,642 3,676,239 3,583,258 $ 494,841 $ 301,500 $ 729,082 $ 560,139 88.5%92.7%83.4%86.5% $ 3,832,817 $ 3,932,817 $ 3,903,814 $ 3,690,780 12.9%7.7%18.7%15.2% 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 Years1 129 Schedule of Contributions 2025 2024 2023 2022 Actuarially Determined Contribution $ 180,915 $ 148,301 $ 154,597 $ 167,000 Contribution in Relation to the Actuarially Determined Contributions (218,936) (148,324) (154,691) (100,859) Contribution Deficiency (Excess)$ (38,021) $ (23) $ (94) $ 66,141 Covered-Employee Payroll $ 5,890,095 $ 5,017,695 $ 4,412,785 $ 4,185,828 Contributions as a percentage of Covered-Employee Payroll 3.72%2.96%3.51%2.41% The following assumptions were used to determine the 2023/2024 Actuarially Determined Contribution: Calculation Timing: The Actuarially Determined Contribution is calculated using a June 30, 2021 valuation date. Interest Rate:5.50% Covered Employee Payroll:As reported by the City Assumptions: 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 Consultants. 1 Fiscal year 2018 was the first year of implementation; therefore, only seven years are shown. 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 Years1 130 2021 2020 2019 2018 $ 163,000 $ 202,000 $ 197,000 $ 192,000 (179,672) (45,227) (97,132) (22,063) $ (16,672) $ 156,773 $ 99,868 $ 169,937 $ 3,888,373 $ 3,832,817 $ 3,932,817 $ 3,903,814 4.62%1.18%2.47%0.57% End of RSI 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 Years1 131 Combining and Individual Fund Statements and Schedules 132 Nonmajor Governmental Funds 133 THIS PAGE INTENTIONALLY LEFT BLANK 134 Combining Balance Sheet Special Revenue Funds SLFRF State Gas Tax Local Transportation and Sidewalk Grant Proposition A ASSETS Cash and investments $ – $ 4,606,837 $ 2,500 $ 3,356,630 Receivables (net of allowance for uncollectible): Accounts – 8,000 – 137,488 Accrued interest – 41,555 – 30,176 Due from other governments – 120,759 – – Prepaid costs – – – – Total assets $ – $ 4,777,151 $ 2,500 $ 3,524,294 LIABILITIES Accounts payable $ – $ 201,040 $ 2,500 $ 11,798 Retentions payable – – – – Accrued liabilities – 10,292 – 4,195 Deposits payable – – – – Due to other funds – – – – Total liabilities – 211,332 2,500 15,993 DEFERRED INFLOWS OF RESOURCES Unavailable revenues – – – – Total deferred inflows of resources – – – – FUND BALANCES (DEFICITS) Nonspendable – – – – Restricted – 4,565,819 – 3,508,301 Unassigned – – – – Total fund balances (deficits) – 4,565,819 – 3,508,301 Total liabilities, deferred inflows of resources, and fund balances (deficits)$ – $ 4,777,151 $ 2,500 $ 3,524,294 CITY OF ROSEMEAD Combining Balance Sheet Nonmajor Governmental Funds June 30, 2025 135 Special Revenue Funds Proposition C Measure R Measure M Air Quality Management District ASSETS Cash and investments $ 3,607,213 $ 3,537,495 $ 4,255,578 $ 469,403 Receivables (net of allowance for uncollectible): Accounts – – – – Accrued interest 32,545 31,096 37,509 4,337 Due from other governments – – – 17,592 Prepaid costs – – – – Total assets $ 3,639,758 $ 3,568,591 $ 4,293,087 $ 491,332 LIABILITIES Accounts payable $ 108,314 $ 244,936 $ 60,893 $ 10 Retentions payable – 7,650 – – Accrued liabilities 2,394 1,450 979 10 Deposits payable – – – – Due to other funds – – – – Total liabilities 110,708 254,036 61,872 20 DEFERRED INFLOWS OF RESOURCES Unavailable revenues – – – – Total deferred inflows of resources – – – – FUND BALANCES (DEFICITS) Nonspendable – – – – Restricted 3,529,050 3,314,555 4,231,215 491,312 Unassigned – – – – Total fund balances (deficits) 3,529,050 3,314,555 4,231,215 491,312 Total liabilities, deferred inflows of resources, and fund balances (deficits)$ 3,639,758 $ 3,568,591 $ 4,293,087 $ 491,332 CITY OF ROSEMEAD Combining Balance Sheet (Continued) Nonmajor Governmental Funds June 30, 2025 136 Special Revenue Funds Street Lighting Development Impact Fee Traffic Development Impact Fee Public Safety Development Impact Fee General Govt ASSETS Cash and investments $ 3,764,668 $ 260,054 $ 34,633 $ 240,684 Receivables (net of allowance for uncollectible): Accounts – – – – Accrued interest 33,853 2,318 308 2,214 Due from other governments 27,408 – – – Prepaid costs – – – – Total assets $ 3,825,929 $ 262,372 $ 34,941 $ 242,898 LIABILITIES Accounts payable $ 299,845 $ – $ – $ 3,530 Retentions payable 456 – – – Accrued liabilities 3,564 – – – Deposits payable – – – – Due to other funds – – – – Total liabilities 303,865 – – 3,530 DEFERRED INFLOWS OF RESOURCES Unavailable revenues – – – – Total deferred inflows of resources – – – – FUND BALANCES (DEFICITS) Nonspendable – – – – Restricted 3,522,064 262,372 34,941 239,368 Unassigned – – – – Total fund balances (deficits) 3,522,064 262,372 34,941 239,368 Total liabilities, deferred inflows of resources, and fund balances (deficits)$ 3,825,929 $ 262,372 $ 34,941 $ 242,898 CITY OF ROSEMEAD Combining Balance Sheet (Continued) Nonmajor Governmental Funds June 30, 2025 137 Special Revenue Funds Development Impact Fee Parks Community Development Block Grant HDC Senior Housing Road Maintenance and Rehabilitation Account ASSETS Cash and investments $ 936,363 $ – $ 339,257 $ 4,959,414 Receivables (net of allowance for uncollectible): Accounts – – 1,843 467 Accrued interest 8,321 – 3,016 43,880 Due from other governments – 159,318 470,613 245,682 Prepaid costs – – 251 – Total assets $ 944,684 $ 159,318 $ 814,980 $ 5,249,443 LIABILITIES Accounts payable $ – $ 104,730 $ 233,203 $ – Retentions payable – – – 3,668 Accrued liabilities – 959 – 1,526 Deposits payable – – 46,683 – Due to other funds – 111,941 156,575 – Total liabilities – 217,630 436,461 5,194 DEFERRED INFLOWS OF RESOURCES Unavailable revenues – – – – Total deferred inflows of resources – – – – FUND BALANCES (DEFICITS) Nonspendable – – 251 – Restricted 944,684 – 378,268 5,244,249 Unassigned – (58,312) – – Total fund balances (deficits) 944,684 (58,312) 378,519 5,244,249 Total liabilities, deferred inflows of resources, and fund balances (deficits)$ 944,684 $ 159,318 $ 814,980 $ 5,249,443 CITY OF ROSEMEAD Combining Balance Sheet (Continued) Nonmajor Governmental Funds June 30, 2025 138 Special Revenue Funds Capital Project Fund Clean Water Fund SB1383 Measure R Capital Projects Total Nonmajor Funds ASSETS Cash and investments $ 1,505,439 $ 302,276 $ – $ 32,178,444 Receivables (net of allowance for uncollectible): Accounts – – – 147,798 Accrued interest 13,642 2,807 – 287,577 Due from other governments – – 368,114 1,409,486 Prepaid costs – – – 251 Total assets $ 1,519,081 $ 305,083 $ 368,114 $ 34,023,556 LIABILITIES Accounts payable $ 223,452 $ 78 $ 84,526 $ 1,578,855 Retentions payable 9,481 – – 21,255 Accrued liabilities – 3,261 – 28,630 Deposits payable – – – 46,683 Due to other funds – – 197,856 466,372 Total liabilities 232,933 3,339 282,382 2,141,795 DEFERRED INFLOWS OF RESOURCES Unavailable revenues – – 249,286 249,286 Total deferred inflows of resources – – 249,286 249,286 FUND BALANCES (DEFICITS) Nonspendable – – – 251 Restricted 1,286,148 301,744 – 31,854,090 Unassigned – – (163,554) (221,866) Total fund balances (deficits) 1,286,148 301,744 (163,554) 31,632,475 Total liabilities, deferred inflows of resources, and fund balances (deficits)$ 1,519,081 $ 305,083 $ 368,114 $ 34,023,556 CITY OF ROSEMEAD Combining Balance Sheet (Continued) Nonmajor Governmental Funds June 30, 2025 139 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Special Revenue Funds SLFRF State Gas Tax Local Transportation and Sidewalk Grant Proposition A REVENUES Taxes $ – $ – $ – $ – Intergovernmental 480,414 1,419,746 50,028 1,536,270 Charges for services – 8,000 – 6,958 Use of money and property – 204,248 14 142,358 Developer contributions – – – – Miscellaneous – – – – Total revenues 480,414 1,631,994 50,042 1,685,586 EXPENDITURES Current: General government – 6,151 – 4,040 Public safety – 58,606 – – Community development – – – – Parks and recreation – – – 57,082 Public works – 1,120,105 – 545,565 Capital outlay – – 50,000 – Debt service: – – – – Principal retirement – 20,097 – – Total expenditures – 1,204,959 50,000 606,687 Excess (deficiency) of revenues over (under) expenditures 480,414 427,035 42 1,078,899 OTHER FINANCING SOURCES (USES) Transfers out (480,414) – – – Total other financing sources (uses) (480,414) – – – Net change in fund balances – 427,035 42 1,078,899 Fund balances-beginning – 4,138,784 (42) 2,429,402 Change within financial reporting entity — — — — Fund balances (deficit)-beginning, as restated – 4,138,784 (42) 2,429,402 Fund balances (deficit)-ending $ – $ 4,565,819 $ – $ 3,508,301 CITY OF ROSEMEAD Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended June 30, 2025 140 Special Revenue Funds Proposition C Measure R Measure M Air Quality Management District REVENUES Taxes $ – $ – $ – $ – Intergovernmental 1,088,696 816,371 924,921 67,368 Charges for services 10,950 – – – Use of money and property 157,062 149,791 190,650 22,473 Developer contributions – – – – Miscellaneous – – – – Total revenues 1,256,708 966,162 1,115,571 89,841 EXPENDITURES Current: General government 3,972 4,035 – – Public safety 40,168 – – – Community development – – – – Parks and recreation – – – – Public works 1,001,092 222,343 55,140 4,051 Capital outlay – 220,049 590,903 55,308 Debt service: – – – – Principal retirement – – – 33,448 Total expenditures 1,045,232 446,427 646,043 92,807 Excess (deficiency) of revenues over (under) expenditures 211,476 519,735 469,528 (2,966) OTHER FINANCING SOURCES (USES) Transfers out – – – – Total other financing sources (uses) – – – – Net change in fund balances 211,476 519,735 469,528 (2,966) Fund balances-beginning 3,317,574 2,794,820 3,761,687 494,278 Change within financial reporting entity — — — — Fund balances (deficit)-beginning 3,317,574 2,794,820 3,761,687 494,278 Fund balances (deficit)-ending $ 3,529,050 $ 3,314,555 $ 4,231,215 $ 491,312 CITY OF ROSEMEAD Combining Statement of Revenues, Expenditures, and Changes in Fund Balances(Continued) Nonmajor Governmental Funds For the Year Ended June 30, 2025 141 Special Revenue Funds Street Lighting Development Impact Fee Traffic Development Impact Fee Public Safety Development Impact Fee General Govt REVENUES Taxes $ 236,820 $ – $ – $ – Intergovernmental 1,323,863 – – – Charges for services – – – – Use of money and property 160,390 10,303 1,394 9,678 Developer contributions – 66,459 10,601 74,011 Miscellaneous – – – – Total revenues 1,721,073 76,762 11,995 83,689 EXPENDITURES Current: General government – – – – Public safety – – 820 – Community development – – – – Parks and recreation – – – – Public works 1,627,030 – – 18,566 Capital outlay 71,633 – 993 – Debt service: – – – – Principal retirement – – – – Total expenditures 1,698,663 – 1,813 18,566 Excess (deficiency) of revenues over (under) expenditures 22,410 76,762 10,182 65,123 OTHER FINANCING SOURCES (USES) Transfers out – – – – Total other financing sources (uses) – – – – Net change in fund balances 22,410 76,762 10,182 65,123 Fund balances-beginning 3,499,654 185,610 24,759 174,245 Change within financial reporting entity — — — — Fund balances (deficit)-beginning, as restated 3,499,654 185,610 24,759 174,245 Fund balances (deficit)-ending $ 3,522,064 $ 262,372 $ 34,941 $ 239,368 CITY OF ROSEMEAD Combining Statement of Revenues, Expenditures, and Changes in Fund Balances(Continued) Nonmajor Governmental Funds For the Year Ended June 30, 2025 142 Special Revenue Funds Formerly Nonmajor Fund Development Impact Fee Parks Community Development Block Grant HOME Fund HDC Senior Housing Road Maintenance and Rehabilitation Account REVENUES Taxes $ – $ – $ – $ – $ – Intergovernmental – 537,182 – 761,871 1,394,173 Charges for services – 6,337 – 487,378 – Use of money and property 35,520 – – 17,809 194,013 Developer contributions 315,492 – – – – Miscellaneous – – – 7,167 – Total revenues 351,012 543,519 – 1,274,225 1,588,186 EXPENDITURES Current: General government – 2,207 – – – Public safety – – – – – Community development – 516,756 – 1,327,610 – Parks and recreation – 24,556 – – – Public works – – – – 57,685 Capital outlay – – – 27,729 423 Debt service: – – – – – Principal retirement – – – – – Total expenditures – 543,519 – 1,355,339 58,108 Excess (deficiency) of revenues over (under) expenditures 351,012 – – (81,114) 1,530,078 OTHER FINANCING SOURCES (USES) Transfers out – – – – – Total other financing sources (uses) – – – – – Net change in fund balances 351,012 – – (81,114) 1,530,078 Fund balances-beginning 593,672 (58,312) 4,179,961 459,633 3,714,171 Change within financial reporting entity — — (4,179,961) — — Fund balances (deficit)-beginning, as restated 593,672 (58,312) – 459,633 3,714,171 Fund balances (deficit)-ending $ 944,684 $ (58,312) $ – $ 378,519 $ 5,244,249 CITY OF ROSEMEAD Combining Statement of Revenues, Expenditures, and Changes in Fund Balances(Continued) Nonmajor Governmental Funds For the Year Ended June 30, 2025 143 Special Revenue Funds Capital Project Fund Clean Water Fund SB1383 Measure R Capital Projects Total Nonmajor Funds REVENUES Taxes $ – $ – $ – 236,820 Intergovernmental 571,376 265,000 429,543 11,666,822 Charges for services – – – 519,623 Use of money and property 65,238 19,705 – 1,380,646 Developer contributions – – – 466,563 Miscellaneous – – – 7,167 Total revenues 636,614 284,705 429,543 14,277,641 EXPENDITURES Current: General government – – – 20,405 Public safety – – – 99,594 Community development – – – 1,844,366 Parks and recreation – – – 81,638 Public works 316,606 195,830 – 5,164,013 Capital outlay 194,137 – 354,898 1,566,073 Debt service: – – – Principal retirement – – – 53,545 Total expenditures 510,743 195,830 354,898 8,829,634 Excess (deficiency) of revenues over (under) expenditures 125,871 88,875 74,645 5,448,007 OTHER FINANCING SOURCES (USES) Transfers out – – – (480,414) Total other financing sources (uses) – – – (480,414) Net change in fund balances 125,871 88,875 74,645 4,967,593 Fund balances-beginning 1,160,277 212,869 (238,199) 30,844,843 Change within financial reporting entity — — — (4,179,961) Fund balances (deficit)-beginning, as restated 1,160,277 212,869 (238,199) 26,664,882 Fund balances (deficit)-ending $ 1,286,148 $ 301,744 $ (163,554) 31,632,475 CITY OF ROSEMEAD Combining Statement of Revenues, Expenditures, and Changes in Fund Balances(Continued) Nonmajor Governmental Funds For the Year Ended June 30, 2025 144 THIS PAGE INTENTIONALLY LEFT BLANK 145 Budgetary Comparison Schedules 146 THIS PAGE INTENTIONALLY LEFT BLANK 147 SLFRF Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) REVENUES Intergovernmental $ 410,000 $ 410,000 $ 480,414 $ 70,414 Total revenues 410,000 410,000 480,414 70,414 EXPENDITURES Capital outlay 410,000 – – – Total expenditures 410,000 – – – Excess (deficiency) of revenues over (under) expenditures – 410,000 480,414 70,414 OTHER FINANCING SOURCES (USES) Transfers out – (480,414) (480,414) – Total other financing sources (uses) – (480,414) (480,414) – Net change in fund balance $ – $ (70,414) – $ 70,414 Fund balance-beginning – Fund balance-ending $ – CITY OF ROSEMEAD Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual SLFRF For the Year Ended June 30, 2025 148 State Gas Tax Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) REVENUES Intergovernmental $ 1,443,100 $ 1,443,100 $ 1,419,746 $ (23,354) Charges for services 8,000 8,000 8,000 – Use of money and property 84,000 84,000 204,248 120,248 Total revenues 1,535,100 1,535,100 1,631,994 96,894 EXPENDITURES Current: General government 7,100 7,100 6,151 949 Public safety 65,400 65,400 58,606 6,794 Public works 1,598,200 1,598,200 1,120,105 478,095 Capital outlay 110,000 1,482,500 – 1,482,500 Debt service: Principal retirement 22,000 22,000 20,097 1,903 Total expenditures 1,802,700 3,175,200 1,204,959 1,970,241 Net change in fund balance $ (267,600) $ (1,640,100) 427,035 $ 2,067,135 Fund balance-beginning 4,138,784 Fund balance-ending $ 4,565,819 CITY OF ROSEMEAD Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual State Gas Tax For the Year Ended June 30, 2025 149 Local Transportation and Sidewalk Grant Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) REVENUES Intergovernmental $ 50,000 $ 50,000 $ 50,028 $ 28 Use of money and property – – 14 14 Total revenues 50,000 50,000 50,042 42 EXPENDITURES Current: Public works – 50,000 – 50,000 Capital outlay – – 50,000 (50,000) Total expenditures – 50,000 50,000 – Net change in fund balance $ 50,000 $ – 42 $ 42 Fund balance-beginning (42) Fund balance-ending $ – 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, 2025 150 Proposition A Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) REVENUES Intergovernmental $ 1,474,600 $ 1,474,600 $ 1,536,270 $ 61,670 Charges for services 16,900 16,900 6,958 (9,942) Use of money and property 44,900 44,900 142,358 97,458 Total revenues 1,536,400 1,536,400 1,685,586 149,186 EXPENDITURES Current: General government 4,100 4,100 4,040 60 Parks and recreation 72,000 72,000 57,082 14,918 Public works 575,700 575,700 545,565 30,135 Total expenditures 651,800 651,800 606,687 45,113 Net change in fund balance $ 884,600 $ 884,600 1,078,899 $ 194,299 Fund balance-beginning 2,429,402 Fund balance-ending $ 3,508,301 CITY OF ROSEMEAD Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Proposition A For the Year Ended June 30, 2025 151 Proposition C Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) REVENUES Intergovernmental $ 1,241,400 $ 1,241,400 $ 1,088,696 $ (152,704) Charges for services – – 10,950 10,950 Use of money and property 65,200 65,200 157,062 91,862 Total revenues 1,306,600 1,306,600 1,256,708 (49,892) EXPENDITURES Current: General government 4,100 4,100 3,972 128 Public safety 47,700 47,700 40,168 7,532 Public works 1,027,700 1,027,700 1,001,092 26,608 Capital outlay 700,000 2,275,000 – 2,275,000 Total expenditures 1,779,500 3,354,500 1,045,232 2,309,268 Net change in fund balance $ (472,900) $ (2,047,900) 211,476 $ 2,259,376 Fund balance-beginning 3,317,574 Fund balance-ending $ 3,529,050 CITY OF ROSEMEAD Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Proposition C For the Year Ended June 30, 2025 152 Measure R Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) REVENUES Intergovernmental $ 930,800 $ 930,800 $ 816,371 $ (114,429) Use of money and property 52,100 52,100 149,791 97,691 Total revenues 982,900 982,900 966,162 (16,738) EXPENDITURES Current: General government 4,100 4,100 4,035 65 Public works 878,200 628,200 222,343 405,857 Capital outlay 524,200 1,717,268 220,049 1,497,219 Total expenditures 1,406,500 2,349,568 446,427 1,903,141 Net change in fund balance $ (423,600) $ (1,366,668) 519,735 $ 1,886,403 Fund balance-beginning 2,794,820 Fund balance-ending $ 3,314,555 CITY OF ROSEMEAD Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Measure R For the Year Ended June 30, 2025 153 Measure M Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) REVENUES Intergovernmental $ 1,052,900 $ 1,052,900 $ 924,921 $ (127,979) Use of money and property 80,000 80,000 190,650 110,650 Total revenues 1,132,900 1,132,900 1,115,571 (17,329) EXPENDITURES Current: Public works 584,600 654,600 55,140 599,460 Capital outlay – 1,544,580 590,903 953,677 Total expenditures 584,600 2,199,180 646,043 1,553,137 Net change in fund balance $ 548,300 $ (1,066,280) 469,528 $ 1,535,808 Fund balance-beginning 3,761,687 Fund balance-ending $ 4,231,215 CITY OF ROSEMEAD Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Measure M For the Year Ended June 30, 2025 154 Air Quality Management District Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) REVENUES Intergovernmental $ 69,600 $ 69,600 $ 67,368 $ (2,232) Use of money and property 9,500 9,500 22,473 12,973 Total revenues 79,100 79,100 89,841 10,741 EXPENDITURES Current: Public works 6,000 6,000 4,051 1,949 Capital outlay 300,000 300,000 55,308 244,692 Debt service: Principal retirement 35,000 35,000 33,448 1,552 Total expenditures 341,000 341,000 92,807 248,193 Net change in fund balance $ (261,900) $ (261,900) (2,966) $ 258,934 Fund balance-beginning 494,278 Fund balance-ending $ 491,312 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, 2025 155 Street Lighting Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) REVENUES Property taxes $ 179,700 $ 179,700 $ 236,820 $ 57,120 Intergovernmental 1,312,800 1,312,800 1,323,863 11,063 Use of money and property 73,600 73,600 160,390 86,790 Total revenues 1,566,100 1,566,100 1,721,073 154,973 EXPENDITURES Current: Public works 1,863,400 1,963,400 1,627,030 336,370 Capital outlay 2,008,200 4,296,711 71,633 4,225,078 Total expenditures 3,871,600 6,260,111 1,698,663 4,561,448 Net change in fund balance $ (2,305,500) $ (4,694,011) 22,410 $ 4,716,421 Fund balance-beginning 3,499,654 Fund balance-ending $ 3,522,064 CITY OF ROSEMEAD Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Street Lighting For the Year Ended June 30, 2025 156 Development Impact Fee Traffic Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) REVENUES Use of money and property $ 3,300 $ 3,300 $ 10,303 $ 7,003 Developer contributions 41,400 41,400 66,459 25,059 Total revenues 44,700 44,700 76,762 32,062 EXPENDITURES Capital outlay – 50,000 – 50,000 Total expenditures – 50,000 – 50,000 Net change in fund balance $ 44,700 $ (5,300) 76,762 $ 82,062 Fund balance-beginning 185,610 Fund balance-ending $ 262,372 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, 2025 157 Development Impact Fee Public Safety Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) REVENUES Use of money and property $ 500 $ 500 $ 1,394 $ 894 Developer contributions 6,000 6,000 10,601 4,601 Total revenues 6,500 6,500 11,995 5,495 EXPENDITURES Current: Public safety – – 820 (820) Capital outlay – 10,000 993 9,007 Total expenditures – 10,000 1,813 8,187 Net change in fund balance $ 6,500 $ (3,500) 10,182 $ 13,682 Fund balance-beginning 24,759 Fund balance-ending $ 34,941 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, 2025 158 Development Impact Fee General Govt Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) REVENUES Use of money and property $ 3,500 $ 3,500 $ 9,678 $ 6,178 Developer contributions 42,100 42,100 74,011 31,911 Total revenues 45,600 45,600 83,689 38,089 EXPENDITURES Current: Public works – – 18,566 (18,566) Capital outlay – 71,740 – 71,740 Total expenditures – 71,740 18,566 53,174 Net change in fund balance $ 45,600 $ (26,140) 65,123 $ 91,263 Fund balance-beginning 174,245 Fund balance-ending $ 239,368 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, 2025 159 Development Impact Fee Parks Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) REVENUES Use of money and property $ 9,800 $ 9,800 $ 35,520 $ 25,720 Developer contributions 179,400 179,400 315,492 136,092 Total revenues 189,200 189,200 351,012 161,812 EXPENDITURES Current: Capital outlay – 75,000 – 75,000 Total expenditures – 75,000 – 75,000 Net change in fund balance $ 189,200 $ 114,200 351,012 $ 236,812 Fund balance-beginning 593,672 Fund balance-ending $ 944,684 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, 2025 160 Community Development Block Grant Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) REVENUES Intergovernmental $ 761,700 $ 761,700 $ 537,182 $ (224,518) Charges for services – – 6,337 6,337 Total revenues 761,700 761,700 543,519 (218,181) EXPENDITURES Current: General government 10,300 10,300 2,207 8,093 Community development 647,100 647,100 516,756 130,344 Parks and recreation 104,300 104,300 24,556 79,744 Total expenditures 761,700 761,700 543,519 218,181 Net change in fund balance $ – $ – – $ – Fund balance-beginning (58,312) Fund balance-ending $ (58,312) 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, 2025 161 HDC Senior Housing Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) REVENUES Intergovernmental $ 502,342 $ 502,342 $ 761,871 $ 259,529 Charges for services 489,600 489,600 487,378 (2,222) Use of money and property 4,200 4,200 17,809 13,609 Miscellaneous 4,600 4,600 7,167 2,567 Total revenues 1,000,742 1,000,742 1,274,225 273,483 EXPENDITURES Current: Community development 939,520 939,520 1,327,610 (388,090) Capital outlay — 400,000 27,729 372,271 Total expenditures 939,520 1,339,520 1,355,339 (15,819) Net change in fund balance $ 61,222 $ (338,778) (81,114) $ 257,664 Fund balance-beginning 459,633 Fund balance-ending $ 378,519 CITY OF ROSEMEAD Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual HDC Senior Housing For the Year Ended June 30, 2025 162 Road Maintenance and Rehabilitation Account Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) REVENUES Intergovernmental $ 1,280,700 $ 1,280,700 $ 1,394,173 $ 113,473 Use of money and property 90,400 90,400 194,013 103,613 Total revenues 1,371,100 1,371,100 1,588,186 217,086 EXPENDITURES Current: Public works 1,451,300 51,300 57,685 (6,385) Capital outlay – 2,286,800 423 2,286,377 Total expenditures 1,451,300 2,338,100 58,108 2,279,992 Net change in fund balance $ (80,200) $ (967,000) 1,530,078 $ 2,497,078 Fund balance-beginning 3,714,171 Fund balance-ending $ 5,244,249 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, 2025 163 Clean Water Fund Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) REVENUES Intergovernmental $ 589,200 $ 589,200 $ 571,376 $ (17,824) Use of money and property 15,500 15,500 65,238 49,738 Total revenues 604,700 604,700 636,614 31,914 EXPENDITURES Current: General government 2,500 2,500 – 2,500 Public works 320,000 320,000 316,606 3,394 Capital outlay – 202,385 194,137 8,248 Total expenditures 322,500 524,885 510,743 14,142 Net change in fund balance $ 282,200 $ 79,815 125,871 $ 46,056 Fund balance-beginning 1,160,277 Fund balance-ending $ 1,286,148 CITY OF ROSEMEAD Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Clean Water Fund For the Year Ended June 30, 2025 164 SB1383 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) REVENUES Intergovernmental $ 265,000 $ 265,000 $ 265,000 $ – Use of money and property – – 19,705 19,705 Total revenues 265,000 265,000 284,705 19,705 EXPENDITURES Current: Public works 235,200 235,200 195,830 39,370 Total expenditures 235,200 235,200 195,830 39,370 Net change in fund balance $ 29,800 $ 29,800 88,875 $ 59,075 Fund balance-beginning 212,869 Fund balance-ending $ 301,744 CITY OF ROSEMEAD Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Continued) SB1383 For the Year Ended June 30, 2025 165 Measure R Capital Projects Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) REVENUES Intergovernmental $ — $ — $ 429,543 $ 429,543 Total revenues — — 429,543 429,543 EXPENDITURES Current: Capital outlay — 26,559,302 354,898 26,204,404 Total expenditures — 26,559,302 354,898 26,204,404 Net change in fund balance $ — $ (26,559,302) 74,645 $ 26,633,947 Fund balance-beginning (238,199) Fund balance-ending $ (163,554) 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, 2025 166 THIS PAGE INTENTIONALLY LEFT BLANK 167 Internal Service Funds 168 THIS PAGE INTENTIONALLY LEFT BLANK 169 Combining Statement of Net Position - Internal Service Funds Governmental Activities - Internal Service Funds Equipment Replacement Technology Replacement Public Facilities Total Internal Service Funds ASSETS Current assets: Cash and investments $ 2,145,529 $ 1,440,542 $ 9,753,695 $ 13,339,766 Receivables (net of uncollectibles): Accounts — 5,000 — 5,000 Accrued interest 19,402 10,622 85,300 115,324 Total current assets 2,164,931 1,456,164 9,838,995 13,460,090 Noncurrent: Capital assets, net 80,778 144,805 648,681 874,264 Total noncurrent assets 80,778 144,805 648,681 874,264 Total assets 2,245,709 1,600,969 10,487,676 14,334,354 LIABILITIES Current liabilities: Accounts payable — — 268,065 268,065 Accrued interest — 4,732 — 4,732 Subscription Payable - Current — 14,497 — 14,497 Total current liabilities — 19,229 268,065 287,294 Noncurrent liabilities: Subscription payable — 28,650 — 28,650 Total noncurrent liabilities — 28,650 — 28,650 Total liabilities — 47,879 268,065 315,944 NET POSITION Net investment in capital assets 80,778 101,658 622,277 804,713 Unrestricted 2,164,931 1,451,432 9,597,334 13,213,697 Total net position $ 2,245,709 $ 1,553,090 $ 10,219,611 $ 14,018,410 CITY OF ROSEMEAD Combining Statement of Net Position Internal Service Funds June 30, 2025 170 Combining Statement of Revenues, Expenses and Changes in Net Position - Internal Service Funds Equipment Replacement Technology Replacement Public Facilities Total Internal Service Funds OPERATING REVENUES Miscellaneous $ — $ 22,933 $ — $ 22,933 Total operating revenues — 22,933 — 22,933 OPERATING EXPENSES Contractual services — 17,800 68,518 86,318 Depreciation and amortization 17,471 60,147 — 77,618 Total operating expenses 17,471 77,947 68,518 163,936 Operating loss (17,471) (55,014) (68,518) (141,003) NONOPERATING REVENUES (EXPENSES) Interest and fiscal charges — (20,844) — (20,844) Use of money and property 100,800 55,424 451,357 607,581 Total nonoperating revenues (expenses) 100,800 34,580 451,357 586,737 Income (loss) before transfers 83,329 (20,434) 382,839 445,734 Transfers in — 400,000 500,000 900,000 Change in net position 83,329 379,566 882,839 1,345,734 Net position-beginning 2,162,380 1,173,524 9,336,772 12,672,676 Net position-ending $ 2,245,709 $ 1,553,090 $ 10,219,611 $ 14,018,410 CITY OF ROSEMEAD Combining Statement of Revenues, Expenses and Changes in Net Position Internal Service Funds For the Year Ended June 30, 2025 171 Combining Statement of Cash Flows - Internal Service Funds Equipment Replacement Technology Replacement Public Facilities Totals CASH FLOWS FROM OPERATING ACTIVITIES Payments to suppliers and service providers — (17,800) — (17,800) Other receipts (payments) — 17,933 165,981 183,914 Net cash provided by (used for) operating activities — 133 165,981 166,114 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfer from other funds — 400,000 500,000 900,000 Net cash provided by (used for) noncapital financing activities — 400,000 500,000 900,000 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and construction of capital assets (98,249) — (619,715) (717,964) Principal paid on capital debt — (109,623) — (109,623) Interest paid on capital debt — (16,112) — (16,112) Net cash provided by (used for) capital and related financing activities (98,249) (125,735) (619,715) (843,699) CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments 96,633 50,040 433,347 580,020 Net cash provided by (used for) investing activities 96,633 50,040 433,347 580,020 Net increase (decrease) in cash and cash equivalents (1,616) 324,438 479,613 802,435 Cash and cash equivalents-beginning 2,147,145 1,116,104 9,274,082 12,537,331 Cash and cash equivalents-ending $ 2,145,529 $ 1,440,542 $ 9,753,695 $ 13,339,766 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES Operating income (loss)$ (17,471) $ (55,014) $ (68,518) $ (141,003) Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities: Depreciation/amortization expense 17,471 60,147 — 77,618 (Increase) decrease in accounts receivable — (5,000) — (5,000) Increase (decrease) in accounts payable — — 234,499 234,499 Total adjustments 17,471 55,147 234,499 307,117 Net cash provided by (used for) operating activities $ — $ 133 $ 165,981 $ 166,114 SCHEDULE OF NON-CASH NONCAPITAL, CAPITAL, AND INVESTING ACTIVITIES Subscription proceeds $ — $ (152,770) $ — $ (152,770) Purchase of capital assets on account $ — $ — $ (26,404) $ (26,404) ents CITY OF ROSEMEAD Combining Statement of Cash Flows Internal Service Funds For the Year Ended June 30, 2025 172 THIS PAGE INTENTIONALLY LEFT BLANK 173 STATISTICAL SECTION Financial Trends Revenue Capacity Debt Capacity Demographic and Economic Information Operating Information 174 THIS PAGE INTENTIONALLY LEFT BLANK 175 DESCRIPTION OF STATISTICAL SECTION CONTENTS June 30, 2025 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .178 -187 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .189 -193 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .195 -200 9 Direct and Overlapping Governmental Activities Debt 10 Ratios of Outstanding Debt by Type 11 Legal Debt Margin 12 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .202 -206 13 Demographic and Economic Statistics 14 Principal Employers 15 Top 25 Sales Tax Producers 16 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 . . . . . . . . . . .208 -210 17 Operating Indicators by Function 18 Capital Asset Statistics Sources: Unless otherwise noted, the information in these schedules is derived from the Annual Comprehensive Financial Reports for the relevant year. CITY OF ROSEMEAD 176 THIS PAGE INTENTIONALLY LEFT BLANK 177 Financial Trends 178 THIS PAGE INTENTIONALLY LEFT BLANK Unless otherwise Noted, the Source for Statistical Information is the City of Rosemead, Department of Finance 179 Financial Trends Net Position by Component Last Ten Fiscal Years (accrual basis accounting)Schedule 1 Schedule 1 - Net Position by Component Fiscal Year 2025 2024 2023 2022 2021 Governmental Activities Net investment in capital assets $ 55,862,588 $ 53,652,795 $ 49,863,061 $ 47,464,095 $ 47,444,803 Restricted 37,347,973 31,657,170 29,695,512 24,948,999 21,872,184 Unrestricted (deficit) 40,597,645 39,291,717 34,915,640 22,020,342 18,627,063 Total governmental activities net position $ 133,808,206 $ 124,601,682 $ 114,474,213 $ 94,433,436 $ 87,944,050 Note: The City implemented GASB 75 in the FY 2018. Prior Year information was not restated to reflect the impact of the implementation. City of Rosemead Unless otherwise Noted, the Source for Statistical Information is the City of Rosemead, Department of Finance 180 Financial Trends Net Position by Component (Continued) Last Ten Fiscal Years (accrual basis accounting)Schedule 1 Fiscal Year 2020 2019 2018 2017 2016 Governmental Activities Net investment in capital assets $ 48,825,863 $ 50,882,552 $ 53,587,243 $ 52,806,193 $ 51,542,030 Restricted 13,681,082 9,730,202 3,554,634 4,387,055 4,005,847 Unrestricted (deficit) 17,754,529 17,483,422 17,211,587 15,690,721 13,108,874 Total governmental activities net position $ 80,261,474 $ 78,096,176 $ 74,353,464 $ 72,883,969 $ 68,656,751 Note: The City implemented GASB 75 in the FY 2018. Prior Year information was not restated to reflect the impact of the implementation. City of Rosemead Unless otherwise Noted, the Source for Statistical Information is the City of Rosemead, Department of Finance 181 Financial Trends Changes in Net Position Last Ten Fiscal Years (accrual basis accounting)Schedule 2 Schedule 2 - Changes in Net Position Fiscal Year 2025 2024 2023 2022 2021 Expenses: Governmental activities General Government $ 6,178,285 $ 5,613,800 $ 4,916,281 $ 5,285,495 $ 4,659,583 Public Safety 12,896,287 12,935,463 10,824,136 10,975,401 10,679,425 Public Works 12,817,124 12,197,341 10,471,184 9,374,004 9,372,263 Parks & Recreation 4,965,700 4,314,376 3,679,872 3,139,695 3,411,076 Community Development 6,467,687 5,000,935 3,444,775 2,560,821 1,916,949 Interest on long -term debt 42,759 3,735 32,275 46,540 — Total Governmental activities expenses $ 43,367,842 $ 40,065,650 $ 33,368,523 $ 31,381,956 $ 30,039,296 Program Revenues: Governmental activities Charges for Services General Government $ 408,789 $350,078 $360,764 $381,537 $357,513 Public Safety 804,852 748,860 726,754 693,947 643,020 Public Works 3,652,826 3,492,116 3,695,897 3,421,588 2,781,446 Parks & Recreation 1,128,747 982,308 924,014 503,128 163,168 Community Development 5,889,634 3,336,464 4,695,490 3,294,809 2,634,298 Operating grants and contributions 10,771,676 11,915,536 15,398,364 5,550,126 6,590,283 Capital grants and contributions 2,392,150 2,133,127 1,996,455 1,877,695 1,780,851 Total governmental activities program revenues 25,048,674 22,958,489 27,797,738 15,722,830 14,950,579 Net (expense)/revenue Total Primary government net expense $ (18,319,168) $ (17,107,161) $ (5,570,785) $ (15,659,126) $ (15,088,717) General Revenues and other changes in net position Governmental activities Taxes Property taxes $ 12,960,873 $ 12,233,339 $ 11,750,041 $ 10,881,809 $ 10,740,563 Sales taxes 7,106,216 6,999,889 7,369,300 6,889,892 5,534,244 Transient Occupancy 2,320,163 2,238,353 2,312,408 2,097,700 1,405,397 Other taxes 2,037,875 1,953,619 1,802,904 1,594,759 1,378,550 Investment income 4,169,663 3,793,154 2,110,332 596,871 287,628 Other general revenues 87,443 16,276 266,577 99,978 40,151 Total governmental activities 28,682,233 27,234,630 25,611,562 22,161,009 19,386,533 Change in Net Position Total primary government $ 10,363,065 $ 10,127,469 $ 20,040,777 $ 6,501,884 $ 4,297,816 City of Rosemead Unless otherwise Noted, the Source for Statistical Information is the City of Rosemead, Department of Finance 182 Financial Trends Changes in Net Position (Continued) Last Ten Fiscal Years (accrual basis accounting)Schedule 2 Fiscal Year 2020 2019 2018 2017 2016 Expenses: Governmental activities General Government $ 4,003,674 $ 4,205,482 $ 4,554,063 $ 3,705,685 $ 3,218,363 Public Safety 9,744,134 9,125,853 9,499,683 8,935,164 8,381,588 Public Works 9,946,662 6,353,025 9,554,073 7,323,865 8,738,495 Parks & Recreation 3,472,477 2,376,713 3,409,699 3,161,310 3,246,081 Community Development 2,920,016 7,662,344 2,746,482 2,153,986 2,073,145 Interest on long -term debt — — 787 Total Governmental activities expenses $ 30,086,963 $ 29,723,417 $ 29,764,000 $ 25,280,010 $ 25,658,459 Program Revenues: Governmental activities Charges for Services General Government $ 274,450 $ 422,329 $ 328,824 $ 211,217 $ 168,194 Public Safety 686,871 701,520 685,191 560,787 590,533 Public Works 2,746,472 2,987,193 2,693,222 648,141 617,375 Parks & Recreation 624,313 958,176 828,038 788,931 741,171 Community Development 2,459,528 2,827,811 3,328,451 2,437,458 2,282,580 Operating grants and contributions 4,536,459 4,122,174 4,821,892 5,635,721 5,848,129 Capital grants and contributions 1,217,584 1,217,759 1,172,424 1,019,216 973,119 Total governmental activities program revenues 12,545,677 13,236,962 13,858,042 11,301,471 11,221,101 Net (expense)/revenue Total Primary government net expense $ (17,541,286) $ (16,486,455) $ (15,905,958) $ (13,978,539) $ (14,437,358) General Revenues and other changes in net position Governmental activities Taxes Property taxes $ 9,942,183 $ 9,566,800 $ 9,128,934 $ 8,643,019 $ 9,158,499 Sales taxes 5,430,222 5,735,491 5,929,492 5,366,975 4,124,745 Transient Occupancy 1,785,219 2,314,723 2,326,863 2,213,286 1,998,954 Other taxes 1,346,327 1,329,822 1,313,699 1,224,230 1,209,249 Investment income 945,319 1,158,407 210,288 20,526 348,651 Other general revenues 257,314 123,924 647,888 737,721 945,372 Total governmental activities 19,706,584 20,229,167 19,557,164 18,205,757 17,785,470 Change in Net Position Total primary government $ 2,165,299 $ 3,742,712 $ 3,651,206 $ 4,227,218 $ 3,348,112 City of Rosemead Unless otherwise Noted, the Source for Statistical Information is the City of Rosemead, Department of Finance 183 Financial Trends Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis accounting)Schedule 3 Schedule 3 - Fund Balances of Governmental Funds Fiscal Year 2025 2024 2023 2022 2021 General Fund Nonspendable $ 388,807 $ 340,001 $ 351,821 $ 411,571 $ 118,358 Restricted — — — — — Committed 12,661,499 12,647,428 15,000,933 10,169,989 7,985,332 Assigned 136,038 132,948 132,948 132,367 130,267 Unassigned (deficit) 23,841,738 21,345,526 16,944,731 17,842,339 17,353,655 Total general fund $ 37,028,082 $ 34,465,903 $ 32,430,433 $ 28,556,266 $ 25,587,612 All other governmental funds Nonspendable $ 251 $ 24,150 $ — $ — $ — Restricted 34,760,726 31,117,246 29,369,133 24,948,999 21,872,184 Committed — — — — — Assigned — — — — — Unassigned (deficit) (329,630) (296,553) (1,511,092) (110,157) (89,573) Total all other governmental funds $ 34,431,347 $ 30,844,843 $ 27,858,041 $ 24,838,842 $ 21,782,611 City of Rosemead Unless otherwise Noted, the Source for Statistical Information is the City of Rosemead, Department of Finance 184 Financial Trends Fund Balances of Governmental Funds (Continued) Last Ten Fiscal Years (modified accrual basis accounting)Schedule 3 Fiscal Year 2020 2019 2018 2017 2016 General Fund Nonspendable $ 510,371 $ 870,619 $ 853,920 $ 765,218 $ 187,247 Restricted — — — — — Committed 8,896,317 7,667,401 8,760,289 6,935,525 6,682,495 Assigned 121,867 121,867 79,798 63,298 83,513 Unassigned (deficit) 14,679,926 14,635,070 10,790,274 11,270,958 11,514,894 Total general fund $ 24,208,481 $ 23,294,957 $ 20,484,281 $ 19,034,999 $ 18,468,149 All other governmental funds Nonspendable $ — $ — $ — $ — $ — Restricted 13,681,082 8,797,389 3,554,634 4,376,257 4,005,847 Committed — 932,813 1,912,732 — — Assigned — — — — — Unassigned (deficit) (269,560) (23,792) (31,024) (639,510) (832,005) Total all other governmental funds $ 13,411,522 $ 9,706,410 $ 5,436,342 $ 3,736,747 $ 3,173,842 City of Rosemead Unless otherwise Noted, the Source for Statistical Information is the City of Rosemead, Department of Finance 185 Financial Trends Changes in Fund Balances of Government Funds Last Ten Fiscal Years (modified accrual basis accounting)Schedule 4 Schedule 4 - Changes in Fund Balances of Government Funds Fiscal Year 2025 2024 2023 2022 2021 Revenues Taxes $ 24,425,127 $ 23,425,200 $ 23,234,653 $ 21,470,510 $ 19,082,069 Intergovernmental 16,190,078 17,883,375 19,318,247 10,582,249 11,041,044 Licenses and permits 4,131,334 3,594,146 4,514,893 3,332,016 2,492,893 Charges for services 1,867,553 1,745,191 1,625,895 1,247,997 489,269 Fines, forfeitures, and penalties 630,021 604,725 594,978 577,616 598,032 Development participation 466,563 319,277 350,618 114,662 78,558 Investment income 3,562,082 3,155,753 1,883,246 369,785 778,295 Other 64,510 37,550 266,577 84,050 63,684 Total Revenues 51,337,268 50,765,217 51,789,107 37,778,885 34,623,844 Expenditures General government 6,047,605 5,322,096 5,067,987 5,477,022 4,587,158 Public safety 12,697,605 12,723,236 10,922,252 10,978,236 10,574,620 Public works 9,808,235 9,411,015 7,586,361 7,512,480 7,098,823 Community development 6,447,548 4,683,247 3,725,789 3,147,029 3,349,209 Parks and recreation 4,678,849 3,981,220 3,356,826 2,427,999 1,706,997 Capital Outlay 4,464,220 6,510,995 5,657,289 2,389,245 941,577 Debt Service Principal 145,300 139,415 76,457 — — Interest and fiscal charges 21,915 3,735 2,780 — — Total Expenditures 44,311,277 42,774,959 36,395,741 31,932,011 28,258,384 Excess of revenues over/(under) expenditures 7,025,991 7,990,258 15,393,366 5,846,874 6,365,460 Other financing sources (uses) Transfer in 480,414 1,800,000 7,398,300 — — Transfer out (1,380,414) (4,850,000) (15,898,300) 178,011 — Lease arrangements entered into 104,706 — — — — — Total Other Financing Sources (795,294) (3,050,000) (8,500,000) 178,011 — Net Change in fund balances $ 6,230,697 $ 4,940,258 $ 6,893,366 $ 6,024,885 $ 6,365,460 Debt service as a percentage of non- capital expenditures 0.4%0.4%0.2%—%—% City of Rosemead Unless otherwise Noted, the Source for Statistical Information is the City of Rosemead, Department of Finance 186 Financial Trends Changes in Fund Balances of Government Funds (Continued) Last Ten Fiscal Years (modified accrual basis accounting)Schedule 4 Fiscal Year 2020 2019 2018 2017 2016 Revenues Taxes $ 18,503,951 $ 18,946,836 $ 18,698,988 $ 17,447,510 $ 16,491,447 Intergovernmental 8,179,055 8,588,211 8,002,636 6,726,279 7,734,995 Licenses and permits 2,115,419 2,636,026 3,128,000 2,754,881 2,520,937 Charges for services 1,204,638 1,653,095 1,572,266 1,012,557 1,191,275 Fines, forfeitures, and penalties 612,080 622,221 633,711 607,754 597,373 Development participation 150,728 117,115 28,591 — — Investment income 905,039 1,158,407 210,288 666,968 1,002,835 Other 271,515 250,364 566,338 231,545 71,152 Total Revenues 31,942,425 33,972,275 32,840,818 29,447,494 29,610,014 Expenditures General government 3,768,562 4,077,516 4,546,789 4,280,825 3,664,633 Public safety 9,577,867 9,089,645 9,318,858 9,060,840 8,452,932 Public works 7,032,609 7,247,391 6,554,648 6,499,220 6,346,179 Community development 3,352,332 3,637,692 3,279,088 3,385,455 3,323,933 Parks and recreation 2,703,857 2,343,452 2,386,463 2,300,906 2,123,274 Capital Outlay 888,559 495,838 3,606,095 2,790,493 2,302,974 Debt Service Principal — — — — — Interest and fiscal charges — — — — — Total Expenditures 27,323,786 26,891,534 29,691,941 28,317,739 26,213,925 Excess of revenues over/(under) expenditures 4,618,639 7,080,741 3,148,877 1,129,755 3,396,089 Other financing sources (uses) Transfer in — 121,361 2,442,441 1,386,471 Transfer out — — (121,361) (2,442,441) (1,386,471) Lease arrangements entered into — — — — — Total Other Financing Sources — — — — — Net Change in fund balances $ 4,618,639 $ 7,080,741 $ 3,148,877 $ 1,129,755 $ 3,396,089 Debt service as a percentage of non- capital expenditures —%—%—%—%—% End Financial Trends City of Rosemead Unless otherwise Noted, the Source for Statistical Information is the City of Rosemead, Department of Finance 187 THIS PAGE INTENTIONALLY LEFT BLANK 188 Revenue Capacity Information 189 Revenue Capacity Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years Schedule 5 Schedule 5 - Assessed Value and Estimated Actual Value of Taxable Property City Fiscal Year Secured Unsecured SBE Non- Unitary Taxable Assessed Value Total Direct Tax Rate 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% 2025 6,032,550,923 85,981,776 2,656,135 6,121,188,834 9.28% Note: In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum increase of 2%). With few exceptions, property is only re-assessed as a result of new construction activity or at the time it is sold to a new owner. At that point, the property is reassessed based upon the added value of the construction or at the purchase price (market value) or economic value of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above. Source: Los Angeles County Assessor Combined Tax Rolls and HDL Coren & Cone City of Rosemead Unless otherwise Noted, the Source for Statistical Information is the City of Rosemead, Department of Finance 190 Revenue Capacity Direct and Overlapping Property Tax Rates Last Ten Fiscal Years (Rate per $100 of Taxable Value)Schedule 6 Schedule 6 - Direct and Overlapping Property Tax Rates Agency 2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 Basic Levy 1 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 El Monte City School District 0.0913 0.0885 0.0907 0.0799 0.0751 0.1080 0.1458 0.1462 0.1468 0.1464 El Monte Union High School 0.0622 0.0691 0.0675 0.0765 0.0929 0.1097 0.0879 0.0824 0.0847 0.0916 Garvey School District 0.0926 0.0869 0.0857 0.0884 0.0843 0.0862 0.0871 0.0833 0.0607 0.0587 Garvey-Alhambra 0.0525 0.0296 0.0299 0.0299 0.0381 0.0366 0.0454 0.0481 0.0281 0.0291 Los Angeles Community College District 0.0514 0.0602 0.0249 0.0438 0.0402 0.0272 0.0462 0.0460 0.0360 0.0358 Metropolitan Water District 0.0300 0.0300 0.0300 0.0300 0.0300 0.0300 0.0300 0.0300 0.0230 0.0180 Montebello Unified School District 0.0916 0.1128 0.1277 0.0903 0.0971 0.0931 0.1392 0.1351 0.1471 0.0872 Pasadena Community College District 0.0243 0.0251 0.0087 0.0090 0.0055 0.0072 0.0077 0.0082 0.0089 0.0087 Rio Hondo Community College District 0.0233 0.0218 0.0154 0.0153 0.0136 0.0257 0.0255 0.0275 0.0281 0.0271 Rosemead School District 0.0739 0.1008 0.0987 0.1018 0.0746 0.0868 0.0926 0.1198 0.0853 0.1000 San Gabriel Unified School District 0.1020 0.0990 0.1027 0.1019 0.0986 0.0968 0.1056 0.1008 0.1053 0.1068 Total Direct & Overlapping2 Tax Rates 1.6952 1.7236 1.6817 1.6662 1.6500 1.7073 1.8130 1.8273 1.7539 1.7093 City's Share of 1% Levy Per Prop 13 3 0.0928 0.0939 0.0928 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 0.0928 0.0927 0.0927 0.0927 Notes: 1In 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. 2Overlapping 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. 3City'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 2015/16 - 2024/25 Combined Tax Rolls and HDL Coren & Cone City of Rosemead Unless otherwise Noted, the Source for Statistical Information is the City of Rosemead, Department of Finance 191 Revenue Capacity Principal Property Taxpayers Current Year and Nine Years Ago Schedule 7 Schedule 7 - Principal Property Taxpayers 2025 2016 Taxpayer Taxable Assessed Value Rank Percentage of Total Assessed Valuation Assessed Value Rank Percentage of Total Assessed Valuation Rosemead Place, LLC $56,840,891 1 0.93 %$48,240,384 1 1.18% Walmart Real Estate Business Trust 41,326,017 2 0.68 % 35,073,031 2 0.86% Rosemead Hwang LLC 40,655,988 3 0.66 % 34,504,384 3 0.85% AFG Investment Fund 5 LLC 30,210,946 4 0.49 % 25,639,791 4 0.63% Golden State Water Company 28,101,645 5 0.46 % — ——% West Meadow Health Holdings LLC 24,804,672 6 0.41 % — ——% Sunshine Inn 23,650,466 7 0.39 % Metodo Investments LLC 21,626,278 8 0.35 % 19,332,521 5 0.47% 420 Boyd Street LLC 21,352,959 9 0.35 % 18,122,081 6 0.44% Garvey Garden Plaza LLC 21,229,488 10 0.35 % — ——% Rosemead Health Holding LLC — — % 16,176,881 7 0.40% Panda Express Inc — — % 9,714,362 8 0.24% Macy's California Inc — — % 14,571,528 9 0.36% Source: Los Angeles County Assessor Combined Tax Rolls and SBE Non Unitary Tax Roll for 2015/16 and 2024/25 and HDL Coren & Cone City of Rosemead Unless otherwise Noted, the Source for Statistical Information is the City of Rosemead, Department of Finance 192 Revenue Capacity Property Tax Levies and Collections Last Ten Fiscal Years Schedule 8 Schedule 8 - Property Tax Levies and Collections Collected within the Fiscal Year of the Levy Collections in Total Collections to Date Fiscal Year ended June 30 Total Tax Levy for Fiscal Year1 Amount Percentage of Levy Subsequent Years*Amount Percent of Levy 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% 2025 4,597,238 3,343,356 72.73% — 3,343,356 72.73% * Information not available. Source: Los Angeles County Auditor Controller's Office End Revenue Capacity Information City of Rosemead Unless otherwise Noted, the Source for Statistical Information is the City of Rosemead, Department of Finance 193 THIS PAGE INTENTIONALLY LEFT BLANK 194 Debt Capacity Information 195 Debt Capacity Direct and Overlapping Debt As of June 30, 2025 Schedule 9 Schedule 9 - Direct and Overlapping Debt City Assessed Valuation $6,121,188,834 Total Debt Percentage Applicable1 City's Share of Debt Direct and Overlapping Tax and Assessment Debt Metropolitan Water District $ 17,155,000 0.150 %$ 25,733 Los Angeles Community College District 4,919,505,000 0.278 % 13,676,224 Pasadena Area Community College District 149,370,000 2.372 % 3,543,056 Alhambra Unified School District 133,919,695 11.919 % 15,961,888 El Monte Union High School District 253,148,778 13.819 % 34,982,630 Garvey School District 67,119,010 51.099 % 34,297,143 Rosemead School District 50,160,000 66.778 % 33,495,845 Total Direct and Overlapping Tax and Assessment Debt 140,017,698 Overlapping General Fund Debt Los Angeles County General Fund Obligations $ 3,036,637,390 0.291%$ 8,836,615 Los Angeles County Superintendent of School Certificates of Participation 2,331,775 0.291% 6,785 Pasadena Area Community College District Certificates of Participation 28,490,000 2.372% 675,783 Montebello Unified School District Certificates of Participation 3,185,000 1.452% 46,246 El Monte Union High School District General Fund Obligations 9,365,000 13.819% 1,294,149 Total Overlapping General Fund Obligation Debt 10,859,578 Overlapping Tax Increment Debt (Successor Agency) 14,295,000 100%$ 14,295,000 Subtotal Overlapping Debt $ 165,172,276 (2) Direct Debt (3) Leases 211,143 SBITAs 43,147 254,290 Total Direct and Overlapping Debt $ 165,426,566 Ratios to 2024-25 Assessed Valuation: Direct Debt ($0)0.00% Total Overlapping Tax Assessment Debt 2.29 % Combined Total Debt 2.70 % Ratios to Successor Agency Redevelopment Incremental Valuation ($1,096,969,983): Overlapping Tax Increment Debt 1.30 % (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 district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value. (2) Details regarding the City's direct debt can be found in the notes to the financial statements. (3) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations Source: California Municipal Statistics, Inc. City of Rosemead City of Rosemead Unless otherwise Noted, the Source for Statistical Information is the City of Rosemead, Department of Finance 196 Ratios of Outstanding Debt by Type Last Ten Fiscal Years Schedule 10 Schedule 10 - Ratios of Outstanding Debt by Type Governmental Activities Fiscal Year Leases (in thousand) Subscriptions (in thousand) Total Primary Government Percentage of Personal Income (1)Per capita (1) 2015-16 $ — — $ — $ — $ — 2016-17 — — — — — 2017-18 — — — — — 2018-19 — — — — — 2019-20 — — — — — 2020-21 — — — — — 2021-22 483 — 483 0.04 % 9.56 2022-23 380 12 392 0.03 % 7.84 2023-24 245 7 252 0.02 % 4.99 2024-25 211 43 254 0.02 % 5.03 Sources:City of Rosemead Notes: Details regarding the City's outstanding debt can be found in the notes in the financial statements. (1) See Demographic and Economic Statistics (Schedule 13) for personal income and population data. City of Rosemead Unless otherwise Noted, the Source for Statistical Information is the City of Rosemead, Department of Finance 197 Debt Capacity Legal Debt Margin Last Ten Fiscal Years Schedule 11 Schedule 11 - Legal Debt Margin Fiscal Year 2025 2024 2023 2022 2021 Assessed valuation $ 6,121,188,834 $ 5,823,611,902 $ 5,593,810,961 $ 5,306,456,661 $ 5,175,006,979 Conversion percentage 25%25%25%25%25% Adjusted assessed valuation $ 1,530,297,209 $ 1,455,902,976 $ 1,398,452,740 $ 1,326,614,165 $ 1,293,751,745 Debt limit percentage 15%15%15%15%15% Debt limit $ 229,544,581 $ 218,385,446 $ 209,767,911 $ 198,992,125 $ 194,062,762 Total net debt applicable to limit: General obligation bonds $ — $ — $ — $ — $ — Legal debt margin $ 229,544,581 $ 218,385,446 $ 209,767,911 $ 198,992,125 $ 194,062,762 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 City of Rosemead Unless otherwise Noted, the Source for Statistical Information is the City of Rosemead, Department of Finance 198 Debt Capacity Legal Debt Margin (Continued) Last Ten Fiscal Years Schedule 11 Fiscal Year 2020 2019 2018 2017 2016 Assessed valuation $ 4,960,200,386 $ 4,745,176,577 $ 4,525,131,407 $ 4,337,892,775 $ 4,077,097,445 Conversion percentage 25%25%25%25%25% Adjusted assessed valuation $ 1,240,050,097 $ 1,186,294,144 $ 1,131,282,852 $ 1,084,473,194 $ 1,019,274,361 Debt limit percentage 15%15%15%15%15% Debt limit $ 186,007,514 $ 177,944,122 $ 169,692,428 $ 162,670,979 $ 152,891,154 Total net debt applicable to limit: General obligation bonds $ — $ — $ — $ — $ — Legal debt margin $ 186,007,514 $ 177,944,122 $ 169,692,428 $ 162,670,979 $ 152,891,154 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 City of Rosemead Unless otherwise Noted, the Source for Statistical Information is the City of Rosemead, Department of Finance 199 Debt Capacity Pledged Revenue Coverage Last Ten Fiscal Years Schedule 12 Schedule 12 - Pledged Revenue Coverage Tax Allocation Bonds Debt Service Fiscal Year Ended June 30 Tax Increment Principal Interest Coverage 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 2,530,000 886,780 0.82 2024 2,513,926 2,320,000 765,500 0.81 2025 2,517,914 1,245,000 676,375 1.31 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 End Debt Capacity Information City of Rosemead Unless otherwise Noted, the Source for Statistical Information is the City of Rosemead, Department of Finance 200 THIS PAGE INTENTIONALLY LEFT BLANK 201 Demographic and Economic Information 202 Demographic and Economic Information Demographic and Economic Statistics Last Ten Fiscal Years Schedule 13 Schedule 13 - Demographic and Economic Statistics Fiscal Year Population (1) Personal Income (in thousands)(2) Per Capita Personal Income Unemployment Rate(3)Median Age(3) 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 2025 50,501 1,371,090 27,149 5.30 %44.5 Source: 1)California State Department of Finance 2)US Census Data 3)California Employment Development Department Compiled by HdL, Coren & Cone City of Rosemead Unless otherwise Noted, the Source for Statistical Information is the City of Rosemead, Department of Finance 203 Demographic and Economic Information Principal Employers Current Fiscal Year and Nine Years Ago Schedule 14 Schedule 14 - Principal Employers 2025 2016 Employer Name Number of Employees Rank Percentage of Total City Employment 1 Number of Employees Rank Percentage of Total Employment 2 Southern California Edison 2,722 1 10.89%4,100 1 17.08% Garvey School District 870 2 3.48%804 2 3.35% Panda Restaurant Group, Inc.786 3 3.14%400 3 1.67% Wal-Mart 586 4 2.34%435 4 1.81% Rosemead School District 350 5 1.40%337 1.40% Target 206 6 0.82%253 1.05% Hemetic Seal Corporation 131 7 0.52%150 0.63% Lucille's 97 8 0.39%——% Double Tree 120 9 0.48%120 0.50% Don Bosco Tech 98 10 0.39%90 0.38% University of the West 82 0.33%0 ——% Olive Garden 152 0.61%111 8 0.46% Source: City of Rosemead 1Based upon Employment Development Department's estimate of 24,000 residents employed - June 2016 2Based upon Employment Development Department's estimate of 25,000 residents employed - June 2025 City of Rosemead Unless otherwise Noted, the Source for Statistical Information is the City of Rosemead, Department of Finance 204 Demographic and Economic Information Top 25 Sales Tax Producers Current Year and Ten Years Ago Schedule 15 Schedule 15 - Top 25 Sales Tax Producers 2025 2016 Sales Tax Producers Business Category Sales Tax Producers Business Category 7 Eleven Service Stations 7 Eleven Service Stations 888 Seafood Casual Dining 888 Seafood Casual Dining Autozone Automotive Supply Stores Allied Building Products Building Materials Beacon Roofing Supply Building Material AutoZone Automotive Supply Stores Blooming VIP Restaurant Casual Dining CH Auto Used Automotive Dealers Boiling Crab Casual Dining Circle K Service Stations Boston Lobster Casual Dining East Gourmet Seafood Casual Dining Circle K Service Stations HJ Auto Group Used Automotive Dealers Happy Lamb Hot Pot Casual Dining In N Out Burger Quick-Service Restaurants In N Out Burger Quick-Service Restaurants JBL Pipe & Supply Plumbing/Electrical Supplies Lucille's Smokehouse BBQ Casual Dining Kami Buffet & Grill Casual Dining Macy's Department Store Macys Department Stores McDonald's Quick-Service Restaurants Mc Donalds Quick-Service Restaurants McDonald's Quick-Service Restaurants Mc Donalds Quick-Service Restaurants Olive Garden Casual Dining Olive Garden Casual Dining Panda Express Fast-Casual Restaurants Rosemead Mobil Service Stations Rosemead Valley Mart-Mobil Service Stations Rosemead Valley Mart Mobil Service Stations Ross Family Apparel Sea Harbour Seafood Casual Dining Sea Harbour Seafood Casual Dining Shell Service Stations Shell Service Stations Spa Nails Supply Specialty Stores Southern California Edison Energy/Utilities T Mobile Electronics/Appliance Stores T Mobile Electronics/Appliance Store Target Discount Dept Stores Target Discount Dept Store TGI Fridays Casual Dining Ulta Beauty Specialty Stores USA Gasoline Service Stations Walmart Supercenter Discount Dept Store Walmart Supercenter Discount Dept Store City of Rosemead Unless otherwise Noted, the Source for Statistical Information is the City of Rosemead, Department of Finance 205 Demographic and Economic Information Full-Time Equivalent City Government Employees by Function/Program Last Ten Fiscal Years Schedule 16 Schedule 16 - Full-Time Equivalent City Government Employees by Function/Program Fiscal Year Function/Program 2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 Governmental Activities General Government 18 22 19 19 15 14 13 12 12 12 Public Safety1 10 7 6 8 8 3 3 7 7 6 Community development 8 8 7 5 6 11 10 7 7 7 Public Works 29 28 25 21 21 23 23 21 20 20 Parks and recreation 9 9 9 8 8 9 8 9 9 8 TOTAL 74 74 66 61 58 60 57 56 55 53 Note: 1The City of Rosemead contracts with the Los Angeles County Sheriff's 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 End Demographic and Economic Information City of Rosemead Unless otherwise Noted, the Source for Statistical Information is the City of Rosemead, Department of Finance 206 THIS PAGE INTENTIONALLY LEFT BLANK 207 Operating Information 208 Operating Information Operating Indicators by Function/Program Last Ten Fiscal Years Schedule 17 Schedule 17 - Operating Indicators by Function/Program Function/Program 2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 Police Arrests 1,540 1,514 1,867 1,404 2,966 2,649 1,817 1,256 1,046 1,339 Parking citations issued 7,717 8,034 7,501 7,725 9,472 7,898 6,244 8,086 7,676 8,047 Fire Number of emergency calls 2,170 3,623 4,420 6,098 2,803 2,789 2,823 3,822 3,206 3,352 Inspections 1,532 2,303 1,264 2,132 2,256 2,267 2,288 2,430 2,311 2,564 Public Works Street resurfacing (miles)0.34 7.20 1.92 4.60 0.00 0.00 1.00 0.80 0.70 1.00 Parks and recreationNumber of recreation classes 707 543 617 491 210 387 631 707 873 871 Number of facility rental 2,792 3,299 3,191 2,797 1,244 2,387 2,508 3,679 6,226 3,070 Source: City of Rosemead City of Rosemead Unless otherwise Noted, the Source for Statistical Information is the City of Rosemead, Department of Finance 209 Operating Information Capital Asset Statistics by Function Last Ten Fiscal Years Schedule 18 Schedule 18 - Capital Asset Statistics by Function Function/Program 2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 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 81.80 81.90 81.90 Streetlights 2743 2684 2684 2684 2511 2,511 2,511 2,511 2,712 2,712 Traffic signals 43 43 43 43 42 42 42 42 42 41 Parks and recreation: Parks 12 10 10 11 12 12 12 11 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 End Operating Information City of Rosemead Unless otherwise Noted, the Source for Statistical Information is the City of Rosemead, Department of Finance 210 CITY OF ROSEMEAD