CC - Item 4C - Acceptance of Annual Audit Reports for the Fiscal Year Ended June 30, 2022ROSEMEAD CITY COUNCIL
STAFF REPORT
TO: THE HONORABLE MAYOR AND CITY COUNCIL AND THE CITY
COUNCIL SITTING AS THE BOARD OF DIRECTORS FOR THE ROSEMEAD
HOUSING DEVELOPMENT CORPORATION
FROM: BEN KIM, CITY MANAGER
DATE: JANUARY 24, 2023
SUBJECT: ACCEPTANCE OF ANNUAL AUDIT REPORTS FOR THE FISCAL YEAR
ENDED JUNE 30, 2022
SUMMARY
The certified public accounting firm of Lance, Soll & Lunghard, LLP (LSL) was engaged by the
City Council to perform an audit of the financial statements and perform compliance testing of the
City of Rosemead of the fiscal year ended June 30, 2022. LSL conducted the audit in accordance
with generally accepted auditing standards and issued an unmodified (clean) audit opinion on the
financial statements. This report provides a summary of the audit report to be used as a companion
to the published Annual Comprehensive Financial Report (ACFR). Also included are the
Rosemead Housing Development Corporation Financial and Compliance Report, and other
documents related to the financial audit.
DISCUSSION
Generally accepted accounting principles (GAAP) provide the criteria for judging whether a
financial report is fairly presented. In defining the minimum standard of acceptable basic financial
reporting for state and local governments, GAAP mandate a complete set of basic financial
statements, including accompanying note disclosures, as well as the presentation of certain
required supplemental information. GAAP encourages government agencies to present this
information within the Annual Comprehensive Financial Report (ACFR). The ACFR is a more
detailed financial report beyond just the basic financial statements and contains three basic
sections:
• The Introductory Section — provides general information of the City which includes the
letter of transmittal, list of principal officials, and a citywide organizational chart.
• The Financial Section — provides the overall financial information of the City which
includes the independent auditor's report, management's discussion and analysis
AGENDA ITEM 4.0
City Council Meeting — Acceptance of Annual Audit Reports
January 24, 2023
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(MD&A), the basic financial statements, notes to the basic financial statements, required
supplementary information, and other supplementary schedules and statements.
• The Statistical Section —provides abroad range of operation, economic, and historical data
that provides a context for assessing the City's economic condition. This section provides
information about the City's general financial trends, revenue capacity, debt capacity,
economic and demographic trends, and operating information.
The scope of the annual audit includes the basic financial statements, which includes the
government -wide financial statements, fund financial statements, and the notes to the financial
statements. The responsibility of the auditors is to express an opinion on the basic financial
statements.
The independent auditors produce four deliverables based on their audit:
• Independent Auditor's Report: Defines the scope of the audit, responsibility of the auditor
and management, an opinion on the fair presentation of the basic financial statements, and
other matters.
• Communication Letter to the City Council and City Manager (SAS 114 Letter): Discusses
significant audit matters, difficulties encountered in performing the audit, disagreements
with management, management representations, management consultation with other
independent accounts, other audit finding or issues, and other matters.
• Independent Auditor's Report on Internal Control over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements: Communicates
deficiencies in internal control or compliance.
• Report on Agreed -Upon Procedures Applied to Appropriation Limit Schedule:
Communicates the results of the specific procedures performed on the City's calculation
of the annual appropriation limit (Gann Limit).
ANALYSIS
Auditor Reports
Independent Auditor Reports
Auditors may issue three different types of opinions at the conclusion of an audit; an unqualified,
qualified, or adverse opinion. An unqualified opinion assures the reader that the information
presented in the ACFR fairly represents the City's financial position. A qualified opinion states
that the information is fairly presented except for a particular issue. An adverse opinion indicates
that the agency has major accounting and/or internal control issues and no reliance may be placed
on the financial statements. The Finance Department staff is proud to report that for the fiscal year
ended June 30, 2022, the City of Rosemead received an unqualified (clean) opinion as stated in
the independent auditor's report and reads as follows:
City Council Meeting — Acceptance of Annual Audit Reports
January 24, 2023
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In our opinion, the financial statements referred to above present fairly, in all
material respects, the respective financial position of the governmental activities,
each major fund, and the aggregate remaining fund information of the City of
Rosemead, California, as ofJune 30, 2022, and the respective changes in financial
position and, where applicable, cash flows thereof for the year then ended in
accordance with accounting principles generally accepted in the United States of
America.
Communication Letter to the City Council and City Manager (SAS 114) Letter
There was nothing significant reported in the communication letter. The financial statement
disclosures are neutral, consistent and clear; the auditors had no significant difficulties in
performing the audit; and there were no disagreements with management.
Auditor's Report on Internal Controls and Compliance
There was nothing significant to report. No deficiencies in internal control were noted and there
were no noted instances of non-compliance.
Report on Agreed -Upon Procedures Applied to Appropriations Limit Schedule
No exceptions were noted to the City's calculation of the annual appropriations limit.
Financial Reports
The ACFR presents information on the status of the City's financial affairs, first on a citywide
basis (Government -Wide Financial Statements) in which all City activities are reported as
governmental activities and second, at the fund level (Fund Financial Statements). The
government -wide statements are designed to provide readers with a broad overview of the City of
Rosemead's finances while the fund statements provide more detailed information about the City's
funds.
Government -Wide Statements — There are three primary citywide financial statements: The
Statement of Net Position, the Statement of Activities, and the Balance Sheet. The Statement of
Net Position presents the City's overall financial position at a specific point in time — in this case,
June 30, 2022. The Statement of Activities presents the City's results of operations over a period
of time (one year). The Balance Sheet presents the assets, liabilities, and fund balance of all
governmental funds. The Basic Financial Statements also provide a reconciliation of the Balance
Sheet to the Statement of Net Position. The following represents highlights of the government -
wide statements:
Net Position — As of June 30, 2022, the City's net position (total assets and deferred
outflows of resources less liability and less deferred inflows of resources) is $94.4 million,
an increase of $6.5 million over the prior fiscal year.
City Council Meeting—Acceptance of Annual Audit Reports
January 24, 2023
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Activities —As of June 30, 2022, total revenue for all governmental funds was $37.9 million
and total expenses for all functions and programs were $31.4 million. The City's net
position increased by $6.5 million during the year through revenues in excess of expenses.
Fund Balance — The City's total governmental funds reported combined ending fund
balances of $53.4 million, an increase of $6.0 million over the prior year. The $6.0 million
increase is comprised of an increase to the General Fund fund balance of $2.97 million and
increases of $3.06 million to fund balances of restricted funds. The $3.06 million
represents fund balance increases to 16 of the 20 special revenue funds reported and
includes significant increases to the Gas Tax, Proposition C, Measure R, Measure M, and
Street Lighting. Of the $53.4 million combined fund balance, $0.4 thousand is non -
spendable, $24.9 million is restricted, $10.1 million is committed, $132 thousand is
assigned, and $17.8 million is unassigned and available for spending at the City's
discretion.
Governmental Fund Statements — The focus on fund statements is to provide information on
financial activities of the year and the balances of spendable resources. The General Fund, always
considered a `Major Fund' for reporting purposes, is found in the Basic Financial Statement section
of the ACFR along with the American Rescue Plan Act fund and State and Local Fiscal Recovery
Fund. All other governmental fund statements are in the Required Supplementary Information
section of the ACFR.
General Fund. The General Fund is the chief operating fund of the City. The fund is used to
account for all financial resources except those required to be accounted for in another fund.
The fund balance on June 30, 2022 is $28.6 million, an increase of $3.0 million over the prior
fiscal year. Of the $28.6 million, $10.1 million is committed to approved capital projects and
the fund balance policy reserve requirement, and $17.8 million is unassigned, with the
remaining $544 thousand as either nonspendable or assigned. The unassigned fund balance
represents 73% of total General Fund expenditures, while total fund balance represents 118%
of that same amount.
Highlights of the change in fund balance are presented below:
• Total General Fund revenues, including other financing sources, of $27.3 million exceeded
expenditures of $24.3 million resulting in revenues over expenditures in the amount of $3.0
million.
Comparison to the prior year — Fund revenues increased over the prior fiscal year by $3.5
million largely due to growth in sales tax receipts ($1.4 million), transient occupancy taxes
($0.7 million), building permit activity ($0.6 million), and increased local return funds
($0.8 million).
Comparison to the prior year — Fund expenditures were $3.6 million more than the prior
fiscal year due to increases in General Government relating to increased costs in personnel,
City Council Meeting — Acceptance of Annual Audit Reports
January 24, 2023
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contract services, and utilities. Public Safety increased over the prior year due to an
increase in the Los Angeles County's Sheriff Law Enforcement contract. In addition, there
was an increase in capital project spending when compared to the prior fiscal year. Parks
and Recreation expenses increased over the previous year due the resumption of services
and programs that were reduced or eliminated during the pandemic.
Comparison to Adopted Budget — The City's General Fund collected revenues of $1.7
million more, equal to 7% higher, in comparison to the final budgeted estimates. Property
taxes completed the year $40 thousand higher than expected due to the increase in tax
assessment values. Sales taxes, completed the year $1.1 million higher than budgeted, and
also completed the year $1.4 million higher than previous fiscal year actuals. Transient
occupancy tax was also budgeted less than the prior year but, in this case, with a better than
expected recovery over previous year, receipts rose $498 thousand above budget.
Revenues within the licenses and permits category completed the year $880 thousand over
the estimate due to strong building permit revenues. The revenue source most deeply
impacted by the pandemic was, as expected, related to fees for services, and more
specifically, parks and recreation revenues. With parks and recreation programs and
services reopening, these fees completed the year $167 thousand above the final estimate.
The use of money and property category revenue also rose above estimates due to a
increase in recreation facility rentals.
Other Major and Non -Major Funds — Last fiscal year, the American Rescue Plan Act (ABPA)
fund was been designated as a `Major' fund for the City. New for this fiscal year, the State
and Local Fiscal Recovery Fund is another `Major' fund for the City that accounts for the $10
million dollars of ARPA revenue loss funds. The City received an additional $8.9 million in
ARPA funds; there were minimal expenses for the year. All other funds of the City are
considered non -major. Overall, the fund balances of these Other Major and Non -Major Funds
increased by $3.1 million, with cash balances for these funds increasing by $4.55 million.
Rosemead Housing Development Corporation (RHDC)
Also reported within the ACFR as a non -major governmental fund, a separate financial statement
is also published for the Housing Development Corporation. The RHDC Fund receives its funding
from tenant rents and subsidies from the Successor Agency. As operational costs have continued
to increase and tenant rents have remained relatively constant, the reliance on the subsidy from the
Successor Agency has become more important. Through the elimination of redevelopment, this
obligation was submitted and subsequently approved by the Department of Finance as an
enforceable obligation, which will ensure ongoing funding for the RHDC into the future. For
fiscal year 2021-22, revenue from rent totaled $474 thousand, and the Successor Agency subsidy
for operations was $429 thousand.
City Council Meeting — Acceptance of Annual Audit Reports
January 24, 2023
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Certificate of Achievement (GFOA)
The Government Finance Officers Association (GFOA) sponsors an award program for excellence
in financial reporting. The City received the award for its June 30, 2021 report and City staff
believes the June 30, 2022 ACFR continues to maintain the high standards set by the GFOA and
have submitted this year's ACFR for evaluation.
STAFF RECOMMENDATION
It is recommended that the City Council receive and file the City of Rosemead Annual
Comprehensive Financial Report (ACFR), the Rosemead Housing Development Corporation
(RHDC) Annual Financial Statements, and other related audit reports for fiscal year ended June
30, 2022.
FISCAL IMPACT
None with this action.
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
Prepared by:
Bryan Chua, Finance Director
ATTACHMENTS
A: City of Rosemead Annual Comprehensive Financial Report (ACFR)
B: Auditors' letter to Mayor and City Council for year ended June 30, 2022
C: Independent Auditors' Report on Internal Control over Financial Reporting
D: Report on Agreed -Upon Procedures Applied to Appropriations Limit
E: Rosemead Housing Development Corporation Basic Financial Statements
F: Auditors' letter to Board of Directors of RHDC for year ended June 30, 2022
Attachment A
Annual Comprehensive Financial Report
for Fiscal Year Ended June 30, 2022
CITY OF ROSEMEAD, CALIFORNIA
Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2022
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Rosemead
Rosemead, California
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2022
Prepared By:
Finance Department
Bryan Chua
Finance Director
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CITY OF ROSEMEAD, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
TABLE OF CONTENTS
Page
Number
INTRODUCTORY SECTION
Letterof Transmittal................................................................................................................................. i
Directoryof Officials............................................................................................................................. viii
OrganizationalChart .............................................................................................................................. ix
Certificate of Achievement of Excellence............................................................................................... x
a I I F-1 I[@] F-11 t11i x0 IN] ki
INDEPENDENT AUDITORS' REPORT..................................................................................................1
MANAGEMENT'S DISCUSSION AND ANALYSIS................................................................................5
Government — Wide Financial Statements
Statementof Net Position...............................................................................................................15
Statementof Activities....................................................................................................................16
Fund Financial Statements
Balance Sheet — Governmental Funds..........................................................................................17
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Position....................................................................................................18
Statement of Revenues, Expenditures and Changes in Fund
Balances — Governmental Funds...................................................................................................19
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds to the
Statementof Activities....................................................................................................................20
Statement of Net Position — Proprietary Funds..............................................................................21
Statement of Revenues, Expenses and Changes in Fund Net
Position — Proprietary Funds..........................................................................................................22
Statement of Cash Flows — Proprietary Funds..............................................................................23
Statement of Fiduciary Net Position — Fiduciary Funds.................................................................24
Statement of Changes in Fiduciary Net
Position — Fiduciary Funds.............................................................................................................25
Notes to Financial Statements...........................................................................................................26
REQUIRED SUPPLEMENTARY INFORMATION
Notes to Required Supplementary Information.................................................................................66
Budgetary Comparison Schedules
GeneralFund..............................................................................................................................67
CITY OF ROSEMEAD, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
TABLE OF CONTENTS
FINANCIAL SECTION (Continued)
Page
Number
AmericanRescue Plan................................................................................................................68
SLFRF.........................................................................................................................................69
Pension Plan
Schedule of Proportionate Share of Net Pension Liability..........................................................70
Schedule of Plan Contributions...................................................................................................72
Schedule of Changes in Net Pension Liability/(Asset)and Related Ratios.................................74
Schedule of Plan Contributions...................................................................................................76
Schedule of Changes in Net OPEB Liability and Related Ratios................................................78
Schedule of Plan Contributions...................................................................................................79
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
Combining Balance Sheet — Nonmajor Governmental Funds...........................................................80
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances — Nonmajor Governmental Funds.........................................................86
Budgetary Comparison Schedules
StateGas Tax Fund....................................................................................................................91
Local Transportation/Sidewalk Grant..........................................................................................92
PropositionA...............................................................................................................................93
PropositionC...............................................................................................................................94
MeasureR...................................................................................................................................95
MeasureM...................................................................................................................................96
Air Quality Management District..................................................................................................97
StreetLighting.............................................................................................................................98
Development Impact Fee Traffic.................................................................................................99
Development Impact Fee Public Safety....................................................................................100
Development Impact Fee General Government.......................................................................101
Development Impact Fee Parks................................................................................................102
Community Development Block Grant(CDBG)........................................................................103
HomeProgram..........................................................................................................................104
Rosemead Housing Development Corporation........................................................................105
CityGrants Funds...............................................................................................................................................106
Road Maintenance and Rehabiliation Account SB1................................................................107
CleanWater Fund.....................................................................................................................108
MeasureR CP...........................................................................................................................109
Combining Statement of Net Position — Internal Service Funds .....................................................110
Combining Statement of Revenues, Expenses and Changes in
Fund Net Position — Internal Service Funds....................................................................................111
Combining Statement of Cash Flows — Internal Service Funds......................................................112
CITY OF ROSEMEAD, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30. 2022
TABLE OF CONTENTS
STATISTICAL SECTION
Page
Number
NetPosition by Component..........................................................................................................114
Changesin Net Position...............................................................................................................116
Fund Balances of Governmental Funds.......................................................................................118
Changes in Fund Balances of Governmental Funds....................................................................120
Assessed Value and Estimated Actual Value of Taxable Property..............................................122
Direct and Overlapping Property Tax Rates.................................................................................123
Principal Property Taxpayers.......................................................................................................124
Property Tax Levies and Collections............................................................................................125
Direct and Overlapping General Bonded Debt Outstanding ........................................................126
LegalDebt Margin ................................................. .......................................................................
128
Pledged -Revenue Coverage........................................................................................................130
Demographic and Economic Statistics.........................................................................................131
PrincipalEmployers......................................................................................................................132
Top 25 Sales Tax Producers........................................................................................................133
Full-time City Employees by Function..........................................................................................134
Operating Indicators by Function..................................................................................................135
Capital Assets Statistics by Function...........................................................................................136
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Introductory Section
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MAYOR:
SEANDANG
MAYOR PRO TEM:
STEVEN LY
COUNCIL MEMBERS:
SANDRA AR wA
MARG.V CLARK
PoLLY Low
December 16, 2022
City of &semead
8838 E. VALLEY BOULEVARD
ROSEMEAD, CALIFORNIA 91770
TELEPHONE (626) 569-2100
FAX (626) 307-9218
To the Honorable Mayor, City Council, City Manager, and Residents of the City of Rosemead
We proudly present to you, the Annual Comprehensive Financial Report (ACFR) of the
City of Rosemead for the fiscal year ended June 30, 2022. It was prepared by the Finance Department
in accordance with Generally Accepted Accounting Principles (GAAP) as promulgated by the
Government Accounting Standards Board (GASB).
Responsibility for the accuracy of the data, completeness, and fairness of the presentation, including
all disclosures, rests with the City. We believe that the information, as presented, is accurate in all
material respects; that it is presented in a manner designed to fairly set forth the financial position
of the City and the results of its operations; and that all disclosures necessary to enable the reader to
gain the maximum understanding of the City's financial affairs have been included.
Management of the City is also responsible for establishing and maintaining internal control designed
to ensure that the assets of the government are protected from loss, theft, or misuse, and to ensure
that adequate accounting data are compiled to allow for the preparation of financial statements in
conformity with U.S. generally accepted accounting principles. Internal control is designed to provide
reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable
assurance recognizes the cost of a control should not exceed the benefits likely to be derived.
The City of Rosemead's financial statements have been audited by Lance, Soll, & Lunghard, LLP, a firm
of licensed certified public accountants. The goal of the independent audit is to provide reasonable
assurance that the financial statements of the City of Rosemead for the fiscal year ended
June 30, 2022, 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, 2022, are fairly presented in conformity with
GAAP. The independent auditor's report is present as the first component of the financial section of
this report.
The independent audit of the financial statements was part of a broader, federally mandated
"Single Audit" designed to meet the special needs of federal grantor agencies. The standard
governing Single Audit engagements require the independent auditor to report not only on the fair
presentation of the financial statements, but also on the audited government's internal controls and
compliance with legal requirements, with special emphasis on internal controls and legal
requirements involving the administration of federal awards. These reports are available in the
City of Rosemead's separately issued Single Audit Report.
Managements' discussion and analysis (MD&A) immediately follows the independent auditors'
report and provides a narrative introduction, overview, and analysis of the City's basic financial
statements. This letter of transmittal complements the MD&A and the financial statements, and it
should be read from that perspective and in conjunction with all sections of the ACFR. The Statistical
section, which is unaudited, includes selected financial and demographic information generally
presented on a multi-year basis.
Profile of the Government
The City of Rosemead, incorporated in 1959, is located in the southwestern part of the state. The
City occupies a land area of 5.5 square miles and serves a population of 50,511. As a general law city,
Rosemead operates under the Council -Manager form of government.
The City Council consists of five City Council Members who are elected at large by the citizens of
Rosemead and are on a rotational Mayor and Mayor Pro Tem term. The Council, as the legislative
body, is responsible for, among other things, establishing policy, passing ordinances and resolutions,
adopting the annual budget, appointing members to various City Commissions, and appointing the
City Manager, City Attorney, and City Clerk. The Council conducts City Council meetings and study
sessions as required. The City Manager is responsible for carrying out the policies and ordinances for
the City Council, for overseeing the day-to-day operations of the government, and for appointing
department directors.
The City has two blended component units: (1) the Rosemead Financing Authority (the Authority);
and (2) the Rosemead Housing Development Corporation (RHDC) Additional information on all
three of these legally separate entities can be found in Note 1(a) in the notes to the financial
statements.
Municipal services are provided to Rosemead residents in a variety of methods including a city
workforce, contract services, and special districts. Administration, Finance, Public Works, Parks and
Recreation, and Planning services are provided by City Staff while Building and Safety, Information
Technology, City Attorney, Engineering, capital improvement projects, and some street maintenance
efforts are provided through contracts with private firms funded by the City. The City's largest public
agency contract is for law enforcement and traffic control services provided by the Los Angeles
County Sheriffs Department. Fire Protection, Library and Flood Control are provided by special
districts within Los Angeles County which are primarily funded through a portion of the ad valorem
property taxes.
Public schools serving residents of Rosemead are under the authority of independent school districts,
but the City works closely with the districts to provide quality educational opportunities for grades
K-12. Garvey School District, Rosemead School District, and EI Monte Union High School District serve
residents of Rosemead. There are 9 elementary schools, 3 middle schools, and 1 high school.
Budgetary Controls
The annual budget serves as the foundation for the City of Rosemead and its component units for
financial planning and control. The development of the Fiscal Year Annual Operating Budget begins
in January with the dissemination of the budget preparation guidelines. All departments and
component units of the City are required to submit requests for appropriation to the City Manager in
March of each year. The Finance Department, under the direction of the City Manager, uses these
requests as the starting point for developing a proposed budget. The City Manager presents the
proposed budget to the City Council for review prior to June 30. The City Council holds public
meetings on the proposed budget and adopts the final budget no later than June 30, the close of the
City of Rosemead's fiscal year. The appropriated budget is prepared by fund and department
(e.g., public safety).
The City's budget policy is that all appropriations for operating accounts lapse at fiscal year-end.
Outstanding operating account encumbrance balances at fiscal year-end are paid from the
appropriations in which the invoice is paid. City Council may amend the budget at any time during
the fiscal year. The City Manager may authorize budget transfers between programs and
departments within the same fund while budgetary changes between funds require City Council
approval.
Budget -to -actual comparisons are provided in this report for each individual governmental fund for
which an appropriated annual budget has been adopted. For the general fund and major special
revenue funds, these comparison schedules are presented as part of the required supplementary
information in the accompanying financial statements. For governmental funds that have
appropriated annual budgets, other than the general fund, and major special revenue funds, the
comparison schedules are presented in the other supplementary section of the accompanying
financial statements.
Economic Condition and Outlook
Higher inflation has accompanied the economic recovery at the global, national, and local levels. The
Los Angeles -Long Beach -Anaheim area Consumer Price Index increased by 8.6% percent in Fiscal Year
2022, almost quadrupling the fairly steady rate established subsequent to the COVID-19 pandemic.
June 2022 over June 2021 food prices increased 9.3%. The index for all items excluding food and
energy increased by 6.0% year over year. Energy prices increased 38.4 percent, owing primarily to an
increase in the price of gasoline.
Along with the infusion of stimulus from the Fed, the consumer has also been very resilient during
the course of the pandemic, causing a faster return to normalcy. The current challenge of the Fed is
to curb inflation by effectively destroying consumer demand without causing a recession. It is a
complex balancing act that the Fed is tasked with. The Fed started raising the federal funds rate early
this calendar year. The federal funds rate is the overnight rate at which commercial banks borrow
and lend their excess reserves to one another. Changes in the federal funds rate can affect credit
card interest, mortgage rates, and savings account rates, to name a few. Recent steps taken by the
Federal Reserve Board to reduce inflation are expected to exert downward pressure on consumer
demand, slowing growth by year's end and into 2023.
Due to a stable property tax base and a reasonably diverse sales tax base, the City of Rosemead has
a solid financial foundation. However, the fiscal impact of rising inflation and the Fed's actions cause
economic uncertainty. The City's future economic health will be dependent on maintaining healthy
reserves through fiscally conservative budgets and policies, in addition to aggressively pursuing
economic development opportunities. As part of its sound, conservative fiscal policy, the City will
keep an eye on important economic indicators, revenue sources, and spending levels.
Property tax, including Property Tax In -Lieu of VLF, is the City's largest tax source at $10.9 million and
makes up approximately 40% of the General Fund revenues. Total assessed value from the 2021-22
tax roll is $5.2 billion, up $124 million from the prior year. Residential property represents 95% of
this growth as housing values rise. The median sales price growth experienced in 2021 was larger
than that seen in any year since the first year of the recovery after the Great Recession. The median
sales price for a single-family home increased from $695,000 to $850,000 over the past year. The
residential category assessed value increased approximately $217 million, which represents a 5.4%
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 $6.9 million
and represents approximately 25% of the General Fund revenues. Consumer goods continue to be
the top category of sales tax generating businesses in Rosemead, generating 34% of sales tax
revenues followed by 21% from restaurants and hotels.
Transient occupancy tax (TOT) and recreation program revenues were most negatively impacted by
the pandemic. Typically the third largest source of income to the General Fund pre -pandemic, TOT
receipts are in fourth position, behind increased building permit revenue. Recreation program
revenue continues to be below the pre -pandemic level of $867,400 in FY 2019 to just $565,100 in
FY 2022. However, compared to FY 2021, recreation program revenue increased $420,900 as
programs and classes started to reopen. The City anticipates utilizing a portion of the funds provided
through American Rescue Plan Act of 2021, signed by President Biden on March 11, 2021, to offset
losses due to the pandemic as allowed by the Act. The City also anticipates that these revenues will
rebound once the COVID-19 Emergency is over and the local economy returns to normalcy.
President Biden signed the American Rescue Plan Act (ARPA) of 2021 into law in March 2021. The
$1.9 trillion package is intended to combat the COVID-19 pandemic, including the public health and
economic consequences, and the City received $17.9 million as part of it. The City Council accepted
the $10 million standard revenue loss allowance provided in the ARPA Final Rule on April 26, 2022,
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 use of the $10 million standard revenue loss allowance and the remaining $7.9 million
ARPA funds, which have been partially spent in Fiscal Year 2022 and partially reflected in the Fiscal
Year 2023 Budget.
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. Updated
IV
every two years, the Strategic Plan for 2018-2020 uses the City of Rosemead's vision and key
organizational goals to set clear priorities and action items for the succeeding two years. The vision,
key organizational goals, and action items in the Strategic Plan update are designed to guide the
decisions of the City Council, focus of the City administration, and daily work of City staff.
In December 2021, the City Council adopted a 2030 Strategic Plan which focuses and values safety,
diversity, community, service, and family. This vision will assist in creating a safe, welcoming,
connected, and active city, a destination with thriving local businesses, well-maintained parks and
infrastructure, and quality programming and services which support the entire City. Our overall
mission is for Rosemead to provide quality programs, services, and support that builds relationships,
increase opportunities, and make Rosemead a great place to live, work, and play.
Major Accomplishments
The Public Works Department completed four major projects during the year including replacement
of the HVAC system at the Garvey Park Gymnasium, the Jay Imperial Crosswalk Installation and
Sidewalk Replacement Project, a community garden on Del Mar Avenue, and the Rosemead Park
walking trail. The projects were funded from a variety of sources including General Fund, Community
Development Block Grant, Measure M, Measure R, and Transportation Development Act funds.
Throughout 2021 and through a majority of 2022, the City actively worked on the 6th Cycle Housing
Element for the 2021-2029 planning cycle. The process involves the evaluation of current and future
needs, analysis of local housing production constraints, identification of adequate housing sites,
establishing new policies and programs, drafting the updated Housing Element document, and
preparing an Addendum to the General Plan Environmental Impact Report. The City's 6th Cycle
Housing Element was certified by the State Department of Housing and Community Development
(HCD) on August 1, 2022. The City of Rosemead was number 21 out of 197 SCAG jurisdictions to be
certified.
Throughout 2021 and through a majority of 2022, the City actively worked on the 6th Cycle Housing
Element for the 2021-2029 planning cycle. The process involves the evaluation of current and future
needs, analysis of local housing production constraints, identification of adequate housing sites,
establishing new policies and programs, drafting the updated Housing Element document, and
preparing an Addendum to the General Plan Environmental Impact Report. The City's 6th Cycle
Housing Element was certified by the State Department of Housing and Community Development
(HCD) on August 1, 2022. The City of Rosemead was number 21 out of 197 SCAG jurisdictions to be
certified.
In response to Goal H of the City's 2030 Strategic Plan Land Use and Zoning Goal to "Attract new
business by streamlining the alcohol licensing permit process," the City Council approved a code
amendment to streamline the current alcohol license permitting process from a Conditional Use
Permit to an Administrative Use Permit, to allow restaurants with a minimum requirement of 1,000
square feet to serve beer/wine incidental to sit-down dining. The AUP process is administrative and
approved by the Director of Community Development. The amendment was intended to assist the
City's restaurant business community that are facing economic hardship from the COVID-19
pandemic.
v
Earlier this year, the City Council approved the City's first food hall, "The Myriad". The food hall will
contain 27 leasable areas that range from a 15 square foot kiosk to a 3,800 square foot unit, indoor
and outdoor dining areas, and a rooftop deck. The City Council also approved Prospect Villa, a
mixed- use project located within the Garvey Avenue Specific Plan that consists of 75 residential units
(30 of which are live/work units) and 6,346 square feet of commercial floor area.
Lumina Walk, a residential planned development consisting of 31 residential units completed
construction this year. All units have been sold. In addition, Garvey Garden Plaza, Garvey Earle Plaza,
and Welbe Health have also completed construction. Garvey Garden Plaza consists of 46 residential
units and 11,860 square feet of commercial floor area. Garvey Earle Plaza consists of 34 residential
units and approximately 7,000 square feet of commercial floor area. Welbe Health is a program of
all-inclusive care forthe elderly (PACE) and provides full-service health care and personalized support
for those ages 55 and over.
Future Initiatives
Since the City's 6th Cycle Housing Element for the 2021-2029 planning cycle is adopted and certified
by HCD, the City will be implementing the programs and actions identified in the Housing Element to
achieve the goals and housing policies during the 2021-2029 planning period. In addition, the City is
initiating an update to the Zoning Code, General Plan, and Zoning Map. The project includes but is
not limited to updates to comply with State laws, updates to existing zoning districts, uses, and
development standards within each, updates to the sign code, updates to the off-street parking
requirements, and adding the Residential/Commercial Mixed -Use Overlay to additional commercial
and industrial zones in the City.
It is expected that the entitlement applications for Mission Villas and Strathmore/Garvey Mixed -Use
Project will be processed. Mission Villas is a residential planned development consisting of
37 residential units, four of which will be affordable units. The Strathmore/Garvey Mixed -Use Project
is located within the Garvey Avenue Specific Plan and consists of 93 residential units (24 of which are
live/work units) and 18,224 square feet of commercial floor area.
Furthermore, Garvey Del Mar Plaza and the Taiwan Center Mixed -Use Project will break ground and
begin construction. Garvey Del Mar Plaza is a mixed-use project located within the Garvey Avenue
Specific Plan and consists of 92 residential units (27 of which are live/work units) and 35,548 square
feet of nonresidential floor area. The Taiwan Center Mixed -Use Project consists of 42 residential
units, seven of which will be affordable units and 17,394 square feet of commercial floor area.
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, 2021. This was the 4th 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
vi
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, 2022.
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. In addition,
appreciation is extended to our independent auditors, Lance, Soil & Lunghard, LLP, for its expertise
and advice in preparing this year's financial report. We also thank the Mayor and members of the
City Council in their interest and support in planning and conducting the financial operations and
corresponding financial disclosures of the City in an open, public, and transparent manner.
Respectively submitted,
Bryan Chua
Finance Director/City Treasurer
vii
City of }zosemeacl
City Officials as of June 30, 2022
CITY COUNCIL
Sandra Armenta
Council Member
Sean Dang
Mayor
Steven Ly
Mayor Pro Tem
Margaret Clark
Council Member
EXECUTIVE STAFF
City Manager— Ben Kim
CityClerk..........................................................
CityAttorney ....................................................
Assistant City Manager .....................................
Chief of Police (LA County Sheriffs Dept).........
Director of Community Development (Interim)
Director of Finance ...........................................
Director of Parks & Recreation .........................
Director of Public Works ...................................
viii
Polly Low
Council Member
................Ericka Hernandez
..............Rachel H. Richman
.................... Mike Bruckner
...................... Vacant
................Stan Wong
............... Bryan Chua
..... Thomas Boecking
..........Michael Chung
city of Kosemead
Organzational Chart
city Of Rosemead
Government Finance Officers Association Award
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Rosemead
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30. 2021
E\eC'ATr,e Director C EO
x
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, 2021. The Certificate of
Achievement is a prestigious
national award recognizing
conformance with the highest
standards for preparation of a
state and local government
financial reports.
To be awarded a Certificate of
Achievement, a government unit
must publish an easily readable
and efficiently organized
comprehensive annual financial
report, whose contents conform
to program standards. The ACFR
must satisfy both generally
accepted accounting principles
and applicable legal requirements.
The award is valid for a period of
one year only. We believe our
current report continues to
conform to the program
requirements and will therefore,
be submitting it to GFOA for
consideration.
The City of Rosemead has received
the Certificate of Achievement for
the last 4 consecutive years.
Financial Section
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LS U*���
INDEPENDENT AUDITORS' REPORT
To the Honorable Mayor and Members of the City Council
City of Rosemead, California
Report on the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, each major fund,
and the aggregate remaining fund information of the City of Rosemead, California, (the "City') as of and for
the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise
the City's basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, each major fund, and the aggregate remaining
fund information of the City as of June 30, 2022, and the respective changes in financial position and, where
applicable, cash flows thereof for the year then ended in accordance with accounting principles generally
accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States
of America (GARS) and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Our responsibilities under those
standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements
section of our report. We are required to be independent of the City and to meet our other ethical
responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that
the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Emphasis of Matter
Change in Accounting Principle
As described in Note 1 to the financial statements, in the fiscal year ended June 30, 2022, the City adopted
new accounting guidance, GASB Statement No. 87, Leases. Our opinion is not modified with respect to
this matter.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; and for the
design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or
events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a
going concern for twelve months beyond the financial statement date, including any currently known
information that may raise substantial doubt shortly thereafter.
prime6iobal
LSL6�::
To the Honorable Mayor and Members of the City Council
City of Rosemead, California
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes
ouropinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore
is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing
Standards will always detect a material misstatement when it exists. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are
considered material if, there is a substantial likelihood that, individually or in the aggregate, they would
influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, and design and perform audit procedures responsive to those risks. Such procedures
include examining, on a test basis, evidence regarding the amounts and disclosures in the financial
statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the City's internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about the City's ability to continue as a going concern for a reasonable
period of time.
We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit, significant audit findings, and certain internal control -related matters
that we identified during the audit.
Other Reporting Responsibilities
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis, budgetary comparison schedules for general fund and major special revenue
funds, and required pension and other post -employment benefits schedules, as listed on the table of
contents, be presented to supplement the basic financial statements. Such information is the responsibility
of management and, although not a part of the basic financial statements, is required by the Governmental
Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the
basic financial statements in an appropriate operational, economic, or historical context. We have applied
certain limited procedures to the required supplementary information in accordance with auditing standards
generally accepted in the United States of America, which consisted of inquiries of management about the
methods of preparing the information and comparing the information for consistency with management's
responses to our inquiries, the basic financial statements, and other knowledge we obtained during our
audit of the basic financial statements. We do not express an opinion or provide any assurance on the
information because the limited procedures do not provide us with sufficient evidence to express an opinion
or provide any assurance.
LS L*:::
To the Honorable Mayor and Members of the City Council
City of Rosemead, California
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City's basic financial statements. The combining and individual fund financial statements and
schedules (supplementary information) are presented for purposes of additional analysis and are not a
required part of the basic financial statements. Such information is the responsibility of management and
was derived from and relates directly to the underlying accounting and other records used to prepare the
financial statements. The information has been subjected to the auditing procedures applied in the audit
of the basic financial statements and certain additional procedures, including comparing and reconciling
such information directly to the underlying accounting and other records used to prepare the basic financial
statements or to the basic financial statements themselves, and other additional procedures in accordance
with auditing standards generally accepted in the United States of America. In our opinion, the
supplementary information is fairly stated, in all material respects in relation to the basic financial statements
as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information
comprises the introductory section and statistical section but does not include the basic financial statements
and our auditor's report thereon. Our opinions on the financial statements does not cover the other
information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information
and consider whether a material inconsistency exists between the other information and the financial
statements, or the other information otherwise appears to be materially misstated. If, based on the work
performed, we conclude that an uncorrected material misstatement of the other information exists, we are
required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
December 16, 2022, on our consideration of the City's internal control over financial reporting and on our
tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and
other matters. The purpose of that report is solely to describe the scope of our testing of internal control
over financial reporting and compliance and the results of that testing, and not to provide an opinion on the
effectiveness of the City's internal control overfinancial reporting or on compliance. That report is an integral
part of an audit performed in accordance with Government Auditing Standards in considering the City's
internal control over financial reporting andel compliance.
0 Qw , SOK (X-4X14in, Vf o/
zi
Brea, California
December 16, 2022
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4
Management's
Discussion & Analysis
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City of Rosemead
MANAGEMENT'S DISCUSSION AND ANALYSIS
Year Ended June 30, 2022
The following Management's Discussion and Analysis (MD&A) of the City of Rosemead's financial
performance provides an introduction and overview to the financial activities of the City of Rosemead for
the fiscal year ended June 30, 2022. This narrative discussion and analysis focuses on the current year's
activities, resulting changes and currently known facts; therefore, the information presented herein
should be considered in conjunction with additional information furnished in the letter of transmittal and
the accompanying basic financial statements.
FINANCIAL HIGHLIGHTS
• As of June 30, 2022, the City's net position (total assets and deferred outflows of resources less
liability and less deferred inflows of resources) is $94.4 million, an increase of $6.5 million over
the prior fiscal year.
• As of June 30, 2022, governmental activities total revenue was $37.9 million and total expenses
forall functions and programs were $31.4 million. The City's net position increased by $6.5 million
during the year.
• The City's total governmental funds reported combined ending fund balances of $53.4 million, an
increase of $6.0 million over the prior year. Of this $53.4 million, $0.4 million was
non -spendable, $24.9 million was restricted, $10.1 million was committed, $132 thousand was
assigned, and $17.8 million was unassigned.
• General Fund revenues were $1.7 million more than the final budget, and expenditures were $2.0
million less than the final budget, thereby General Fund revenues exceeded expenditures by
$2.8 million.
• The General Fund's fund balance at the close of the fiscal year was $28.6 million, an increase of
$3.0 million over the prior year. Of this $28.6 million, $17.9 million, representing 63% of
expenditures, was unassigned and $10.1 million was committed to meet the City's fund balance
policy requirement of 40% of expenditure.
• There was a net beginning net position restatement of $12,497 thousand to adjust Government
Activities due to GASB 87 implementation. See Note 1 for more details.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis portion of the annual report is intended to serve as an introduction to, and
provide the reader with a fundamental understanding of, the Annual Comprehensive Annual Report
(ACFR) for the City of Rosemead. The ACFR is divided into four main sections. First is the Introduction
Section which provides the letter of transmittal, an organizational chart, and a list of City officials. The
Introductory Section isfollowed bythe Financial Section, which contains the independent auditor's report,
the management's discussion and analysis, and finally the basic financial statements. These statements
contain the "core" financial information for the City of Rosemead. The basic financial statements include
the government -wide financial statements, followed by the fund financial statements, and finally, the
notes to the financial statements. The Financial Section is followed by the Supplemental Data portion of
the report, which provides individual fund and combining information that rolls up into the amounts
shown in the basic financial statements. The final portion of the ACFR is the Statistical Section. This
section presents selected financial and demographic information, generally presented on a multi-year
basis.
5
City of Rosemead
Management's Discussion and Analysis, Continued
Year Ended June 30, 2022
Government -wide Financial Statements. The government -wide financial statements are designed to
provide readers with a broad overview of the City of Rosemead's finances, in a manner similar to a
private -sector business. Information contained within the government -wide statements includes the
entire City government (except fiduciary funds). These statements use the accrual basis of accounting
with the measurement focus on that of economic resources
The statement of Net Position presents information on all of the City of Rosemead's assets and deferred
outflows of resources and liabilities and deferred inflows of resources, with the difference between the
two reported as net position. Increases or decreases in net position may serve as a useful indicator of
whether the financial position of the City of Rosemead is improving or deteriorating over time.
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 15-16 of this report.
Fund financial statements. Afund is a grouping of related accounts that is used to maintain control over
resources that have been segregated for specific activities or objectives. The City of Rosemead, like other
state and local governments, uses fund accounting to ensure and demonstrate compliance with finance -
related legal requirements. The fund financial statements provide more detailed information about the
City's most significant funds, not the City as a whole. All of the funds of the City of Rosemead can be
divided into three categories: governmental funds, proprietary funds, and fiduciaryfunds.
Governmental funds. Governmentolfunds are used to account for essentially the same functions reported
as governmental activities in the government -wide financial statements. However, unlike the
government -wide financial statements, governmental fund financial statements use the modified accrual
basis of accounting and focus on near-term inflows and outflows of spendable resources, as well as on
balances of spendable resources available at the end of the fiscal year. Only assets expected to be used
and liabilities that come due during the year or soon thereafter are reported on the Balance Sheet. No
capital assets are included. Revenues for which cash is received during or soon after the end of the year,
and expenditures for goods and services that have actually been received during the year, are included
within the Statement of Revenues, Expenditures, and Changes in Fund Balance.
C
City of Rosemead
Management's Discussion and Analysis, Continued
Year Ended June 30, 2022
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.
The City of Rosemead and its component units maintain 23 individual governmental funds. Individual
fund information is presented for the "major" funds in the governmental fund balance sheet and in the
governmental fund statement of revenues, expenditures, and changes in fund balances. The "major"
funds presented include the General Fund, American Rescue Plan Fund, and the SLFRF Fund. Information
for the remaining governmental funds is combined into a single, "other governmental funds" column on
the face of the financial statements. Individual fund data for each of these non -major governmental funds
is provided in the form of "combining statements" presented in the Supplemental Data portion of the
report. The basic governmental fund financial statements can be found on pages 17-20 of this report.
Proprietary Funds are used to report two types of funds: enterprise funds and internal service funds.
Enterprise funds report the same functions presented as "business -type" activities in the government -
side financial statement. These include activities that the City operates similar to a private business. The
City of Rosemead does not have any enterprise funds. Internal service funds are an accounting device
used to accumulate and allocate costs internally among the City's various functions. The City uses internal
service funds to account forvehicle and equipment operations and replacement, and information services
operations and equipment replacement. Because these two services benefit governmental type
functions, the activity has been included within "governmental activities" in the government -side financial
statements. The internal service funds are combined into a single, aggregated presentation in the
proprietary fund financial statements. Individual fund data for the internal service funds is provided in
the form of combining statements in the supplementary information section of this report. The basic
proprietary fund financial statements can be found on pages 21-23 of this report.
Fiduciaryfunds are used to account for resources held for the benefit of parties outside the government.
Fiduciary funds are not reflected in the government -wide financial statement because the funds are
custodial in nature, and therefore, are not available to support City of Rosemead programs. The basic
fiduciary fund financial statements can be found on pages 24-25 of this report.
Notes to the financial statements. The notes provide additional information that is essential to a full
understanding of the data provided in the government -wide and fund financial statements. The
combining statements referred to earlier in connection with non -major governmental funds and internal
service funds are presented immediately following the required supplementary information on pensions.
Combining and individual fund statements and schedules can be found on pages 80-112 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 66-79 of this report.
GOVERNMENT -WIDE FINANCIAL ANALYSIS
Net Position. As noted earlier, net position may serve over time as a useful indicator of a government's
financial position. At June 30, 2022, the City's net position totaled $94.4 million. Total net position
increased by $6.5 million or 7.4% when compared to the prior year mainly due to an increase in cash.
Cash increased by $15.7 million which was partially offset by the unearned revenue of $8.9 million in
American Rescue Plan Act (ARPA) funding.
7
City of Rosemead
Management's Discussion and Analysis, Continued
Year Ended June 30, 2022
The chart below reflects the City's net position for the fiscal year ended June 30, 2022 with comparative
data for the fiscal year ended June 20, 2021.
Net Position
As of June 30, 2022 and 2021
Net position:
Net Investment in Capital Assets
Governmental Activities
47,444,803
19,292
2022
2021
Change
Current and other assets
78,704,080
62,367,412
16,336,668
Capital assets
47,946,882
47,444,803
502,079
Totalassets
126,650,962
109,812,215
16,838,747
Deferred outflows of resources
2,435,033
2,566,490
(131,457)
Long-term liabilities outstanding
5,242,029
9,851,185
(4,609,156)
Other liabilities
23,887,914
13,191,250
10,696,664
Total liabilities
29,129,943
23,042,435
6,087,508
Deferred inflows of resources
5,522,616
1,392,220
4,130,396
Net position:
Net Investment in Capital Assets
47,464,095
47,444,803
19,292
Restricted
24,948,999
21,872,184
3,076,815
Unrestricted
22,020,342
18,627,063
3,393,279
Total net position
$ 94,433,436 $
87,944,050 $
6,489,386
The City's net position of $94.4 million is made up of three components: Net Investment in Capital Assets,
Restricted Net Position, and Unrestricted Net Position. The largest portion, $47.5 million or 50%, 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 $24.9 million
or 26% of the City's net position represents various resources subject to external restrictions on how they
may be used. These net position amounts are said to be restricted. The remaining balance of unrestricted
net position of $22.0 million, or 24%, may be used to meet the City's ongoing obligations. This is the only
"discretionary" portion of the City's total net position amount.
Unrestricted
Restric
269(
Net Position
June 30, 2022
Net Investment
in Capital
Assets
50%
City of Rosemead
Management's Discussion and Analysis, Continued
Year Ended June 30, 2022
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, 2022 and 2021.
Changes in Net Position
Years Ended June 30, 2022 and 2021
Governmental Activities
2022
2021
Change
REVENUES
Program revenues:
Charges for services
$ 8,295,009 $
6,579,445
1,715,564
Operating grants and contributions
5,550,126
6,590,283
(1,040,157)
Capital grants and contributions
1,877,695
1,780,851
96,844
General revenues:
Property taxes
10,881,809
10,740,563
141,246
Othertaxes
10,582,351
8,318,191
2,264,160
Use of money and property
596,871
287,628
309,243
Other
99,978
40,151
59,827
Total revenues
37,883,839
34,337,112
3,546,727
EXPENSES
General government
5,285,495
4,659,583
625,912
Public safety
10,975,401
10,679,425
295,976
Community development
3,139,695
3,411,076
(271,381)
Parks and recreation
2,560,821
1,916,949
643,872
Publicworks
9,420,544
9,372,263
48,281
Total expenses
31,381,956
30,039,296
1,342,660
Change in net position
6,501,883
4,297,816
2,204,067
Net position - June 30, 2021
87,944,050
80,261,474
7,682,576
Restatement
(12,497)
3,384,760
(3,397,257)
Net position - June 30, 2022
$ 94,433,436 $
87,944,050 $
6,489,386
City of Rosemead
Management's Discussion and Analysis, Continued
Year Ended June 30, 2022
Governmental activities. The City's program revenues totaled $15.7 million with a cost of all
governmental activities for the current year being $31.4 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.
Expenses and Program Revenues
Governmental Activities
12
g■Expenses LARevenues
10
6
6
2 L. IL
General Public Safety Community Parks and Public Works
Government Development Recreation
Total revenues increased by $3.5 million over the prior year. This is largely due to an increase in sales tax
receipts ($1.4 million), increased transient occupancy taxes ($0.7 million), increased building permit
activity ($0.6 million), and increased local return funds ($0.8 million).
Fund expenditures were $3.6 million more than the prior fiscal year due to increases in General
Government relating to increased costs in personnel, contract services, and utilities. Public Safety
increased over the prior year due to an increase in the Los Angeles County's Sheriff Law Enforcement
contract. In addition, there was an increase in capital project spending when compared to the prior fiscal
year. Parks and Recreation expenses increased over the previous year due the resumption of services and
programs that were reduced or eliminated during the pandemic.
Revenues Sources Functional Expenses
Governmental Activities Governmental Activities
prup[Ry 6%
3%
S[ (lXi
6 Gmerai
Trkrum
i%
amw^<y
yes
o%
10
Puwic WIN
i1.
30%
City of Rosemead
Management's Discussion and Analysis, Continued
Year Ended June 30, 2022
Sources of Revenue - Two-year Comparison
0
f
I '
Uargesfor Operabng Opitalgrants Progeny Other taxes UseMnwrwy Other
servkes gr.r and ar taus am pmpeM
conbiburmns mnhibutions
FINANCIAL ANALYSIS OF THE CITY'S FUNDS
Functional Expenses - Two-year Comparison
Genual
government
02022 02021
i
PUNK safety
6
Community Para PuNkwal¢
tlevNopment rxreaeatbn
The City uses governmental fund accounting to ensure compliance with budgetary allocations and to
maintain control over resources that are legally, or otherwise, restricted for specific purposes. Following
is a discussion of the individual "major" funds as shown on the Balance Sheet for Governmental Funds in
the basic financial statements.
General Fund. The General Fund is the chief operating fund of the City of Rosemead. It is used to account
for all financial resources, except those required to be accounted for in another fund. The General Fund
is always reported as a "major fund". The General Fund reported $27.1 million in revenues and
$24.3 million in expenditures resulting in revenues over expenditures in the amount $2.8 million. Total
fund balance at June 30, 2022 is $28.6 million, composed of $32.6 million in assets combined with
$3.4 million in liabilities and $621 thousand in deferred inflows of resources. Total $28.6 million fund
balance is classified as $412 thousand nonspendable, $10.1 million committed, $132 thousand assigned,
and $17.9 million unassigned. As a measure of the General Fund's liquidity, it may be useful to compare
both unassigned fund balance and total fund balance to total fund expenditures. Unassigned fund balance
represents 74% of total General Fund expenditures, while total fund balance represents 118% of that
same amount.
The fund balance of the City's General Fund increased by $3.0 million during the current year. Highlights
of the change in fund balance are presented below:
w Total General Fund revenues of $27.1 million exceeded expenditures of $24.3 million.
a Financing from new leases entered into increased fund balance by $178 thousand.
a The previous fiscal year's fund revenues increased by $3.8 million due to growth in nearly every
category. Revenue from sales taxes ($1.4 million), transient occupancy taxes ($0.7 million),
building permit fees ($0.6 million), and parks and recreation ($0.3 million) increased the most.
These four categories account for 77% of the revenue expansion.
w Due to increases in General Government, Parks and Recreation, Public Safety, and Public Works,
as well as decreases in Public Works, Community Development, and Capital Projects, fund
expenditures were $2.1 million higher than the previous fiscal year. The majority of the cost
increase was attributable to salary and benefits ($1.4 million), professional and technical services
($471,000), and law enforcement ($451,000).
11
City of Rosemead
Management's Discussion and Analysis, Continued
Year Ended June 30, 2022
• General Fund Budget Analysis. The budget, as adopted for 2021-22 contained $25.6 in estimated
revenue and $26.3 million in appropriations. This projected a nearly $0.8 million deficit for the
fiscal year. The final actuals were $27.3 million revenue against $24.3 million in expenditures,
providing an addition of $3.0 million to the General Fund's fund balance. Budgeted revenues in
excess of budgeted expenditures amounted to $3.7 million.
2021-22 2021-2022 2021-22 Variance with %Actuals to
Adopted Budget Final Actual Final Budget Amended Budget
Total revenue 25,587,500 25,587,500 27,301,407 1,713,907 7°%
Total expenditures 26,410,110 26,339,960 24,332,753 2,007,207 -8°%
Net (822,610) (752,460) 2,968,654 3,721,114
The City's General Fund collected revenues of $1.7 million more, equal to 7% higher, in comparison to the
final budgeted estimates. Property taxes completed the year $40 thousand higher than expected due to
the increase in tax assessment values. Sales taxes, completed the year $1.1 million higher than budgeted,
and also completed the year $1.4 million higher than previous fiscal year actuals. Transient occupancy
tax was also budgeted less than the prior year but, in this case, with a better than expected recovery over
previous year, receipts rose $498 thousand above budget. Revenues within the licenses and permits
category completed the year $880 thousand over the estimate due to strong building permit revenues.
The revenue source most deeply impacted by the pandemic was, as expected, related to fees for services,
and more specifically, parks and recreation revenues. With parks and recreation programs and services
reopening, these fees completed the year $167 thousand above the final estimate. The use of money and
property category revenue also rose above estimates due to a increase in recreation facility rentals.
The General Fund expenditure budget had an actual variance of $2.7 million over the prior year due to
savings in all governmental activities. General government departments completed the year
$650 thousand below budget due to savings in contingency expenses, personnel due to vacancies, and
contract services. Public Safety was $275 thousand below budget due to the reduction of crossing guard
expenses when schools were teaching virtually, reduction in animal control services, and the transference
of certain public safety costs to the grants fund. Public Works was $102 thousand below budget due to
reduced facility maintenance and contract management services. Parks and recreation was $1.7 million
below budget due entirely to the pandemic. Community development fell $143 thousand below budget
due to the budgeting for special projects which did not occur offset by an increase in building contract
services which are set as a percent of building and plan check revenue.
American Rescue Plan Act and SLFRF Funds. In March of 2021, President Biden signed the American
Rescue Plan Act (ARPA) of 2021 into law. The $1.9 trillion package is designed to combat the COVID-19
pandemic, as well as its public health and economic consequences, and the City received $17.9 million as
part of it. On April 26, 2022, the City Council accepted the ARPA Final Rule's standard revenue loss
allowance of $10 million, which was then transferred from the ARP fund, which received the funds, to the
SLFRF fund, which was established to track the expenditure of the $10 million. Several Council meetings
were held to discuss the application of the $10 million standard revenue loss allowance and the remaining
$7.9 million ARPA funds, which were partially expended in Fiscal Year 2022 and partially reflected in the
Fiscal Year 2023 Budget.
Non -Major Funds. The Non -Major Governmental Funds show a combined fund balance total of
$24.8 million, an increase of $3.1 million. These are the traditional Prop A, Prop C, CDBG, State Gas Tax,
AQMD funds that are very highly restricted.
12
City of Rosemead
Management's Discussion and Analysis, Continued
Year Ended June 30, 2022
CASH MANAGEMENT
To obtain flexibility in cash management, the City employs a pooled cash system. Under the pooled cash
concept, the City invests the cash of all funds with maturity planned to coincide with cash needs. Idle cash
is invested in certain eligible securities as constrained by law and further limited by the City's Investment
Policy. The goals of the City's Investment Policy are safety, liquidity, and yield.
CAPITAL ASSETS
The City of Rosemead's investment in capital assets for its governmental activities as of June 30, 2022,
amounts to $47.5 million (net of accumulated depreciation). This investment in capital assets includes
land, buildings, and improvements, machinery, and equipment, park facilities, roads, highways, bridges,
and construction in progress.
The Public Works Department completed three major projects during the year including Walnut Grove
Payment Resurfacing Project from Marshall Street to northern city limits, citywide residential street
pavement resurfacing project, and city sidewalk, curb & gutter replacement project. The projects were
funded from a variety of sources including Measure M, Measure R, and Gas Tax funds.
Additional information on the City of Rosemead's capital assets can be found in Note No. 7, found on
pages 45 of the Basic Financial Statements.
Capital Assets
(net of depreciation)
DEBT ADMINISTRATION
At the end of the current fiscal year, the Successor Agency for the Rosemead Community Development
Commission had total bonded debt outstanding of $20.4 million, a decrease of $2.4 million from the prior
year. The debt it is backed by future property tax increment revenue. For more detailed information
about the Successor's Agency Long Term Debt, please refer to Note No. 14 on pages 62-65 of the Basic
Financial Statements.
ECONOMIC FACTORS AND NEXT YEAR'S BUDGET
Although the focus of this Annual Report is the economic condition of the City in the fiscal year ended
June 30, 2022, in preparing the budget for Fiscal Year 2022-23, management continued to give special
consideration of the ongoing effects of the COVID-19 pandemic on the local and national economies.
13
Governmental Activities
2022
2021
Land
$ 4,417,104
$ 4,417,104
Buildings
13,355,341
13,877,201
Improvements otherthan buildings
2,953,497
3,237,898
Machinery and equipment
59,173
83,288
Autos and trucks
170,113
230,855
Furniture and office equipment
10,790
13,605
Infrastructure
25,048,535
25,279,676
Construction in progress
1,443,958
305,176
Right -to -use leased vehicles
488,371
Total
$47,946,882
$47,444,803
DEBT ADMINISTRATION
At the end of the current fiscal year, the Successor Agency for the Rosemead Community Development
Commission had total bonded debt outstanding of $20.4 million, a decrease of $2.4 million from the prior
year. The debt it is backed by future property tax increment revenue. For more detailed information
about the Successor's Agency Long Term Debt, please refer to Note No. 14 on pages 62-65 of the Basic
Financial Statements.
ECONOMIC FACTORS AND NEXT YEAR'S BUDGET
Although the focus of this Annual Report is the economic condition of the City in the fiscal year ended
June 30, 2022, in preparing the budget for Fiscal Year 2022-23, management continued to give special
consideration of the ongoing effects of the COVID-19 pandemic on the local and national economies.
13
City of Rosemead
Management's Discussion and Analysis, Continued
Year Ended June 30, 2022
However, with loosened COVID-19 restrictions, we are optimistic that these revenue sources will be back
to their pre -pandemic levels in the near future.
Stimulus programs helped expedite the return to normalcy, but higher inflation accompanied the
economic recovery. The Fed's challenge is finding a balance between price stability and maximum
employment. Early in this calendar year, the Fed began to raise the federal funds rate to counter
inflationary pressures. Consumer demand is expected to be pressed downward by Federal Reserve Board
actions to lower inflation, slowing growth by year's end and into 2023.
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.
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the City of Rosemead's finances for all
those with an interest in the government's finances. Questions concerning any of the information
provided in this report or requests for additional financial information should be addressed to:
Finance Director
8838 East Valley Boulevard
Rosemead, California 91770.
14
Basic Financial Statements
CITY OF ROSEMEAD, CALIFORNIA
STATEMENT OF NET POSITION
JUNE 30, 2022
Net Position
Net Investment in capital assets
Governmental
Restricted:
Activities
Assets:
4,477,846
Cash and investments
$ 70,539,074
Receivables:
20,040,631
Accounts receivable
1,008,310
Notes and loans
3,501,142
Interest receivable
136,619
Leases
227,176
Prepaid costs
117,629
Due from other governments
2,763,994
Capital assets, not being depreciated
5,861,062
Capital assets, net of depreciation/amortization
42,085,820
Net pension asset
358,035
Net other post employment benefits asset
52,101
Total Assets
126,650,962
Deferred Outflows of Resources:
Deferred outflows related to pensions
2,157,975
Deferred outflows related to other post employment benefits
277,058
Total Deferred Outflows of Resources
2,435,033
Liabilities:
Accounts payable
4,097,991
Accrued liabilities
234,626
Unearned revenue
18,085,118
Retentions payable
115,071
Deposits payable
834,656
Due to other governments
97,953
Noncurrent liabilities:
Due within one year:
Compensated absences
319,293
Leases
103,206
Due in more than one year:
Compensated absences
353,159
Leases
379,561
Net pension liability
4,509,289
Total Liabilities
29,129,943
Deferred Inflows of Resources:
Deferred inflows related to pensions
4,417,266
Deferred inflows related to other post employment benefits
878,174
Deferred inflows related to leases
227,176
Total Deferred Inflows of Resources
5,522,616
Net Position
Net Investment in capital assets
47,464,095
Restricted:
Community services
4,477,846
Low and moderate income housing
430,522
Public works
20,040,631
Unrestricted
22,020,342
Total Net Position
$ 94,433,436
The notes to financial statements are an integral part of this statement.
15
CITY OF ROSEMEAD, CALIFORNIA
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2022
Functions/Programs
Net(Expenses)
Revenues and
Governmental Activities:
Changesin
Program Revenues
Net Position
Operating
Capital
$ 381,537
Charges for Contributions
Contributions
Governmental
Expenses Services and Grants
and Grants
Activities
Functions/Programs
Governmental Activities:
General government
$ 5,285,495
$ 381,537
$ 508,193
$ 67,616 $
(4,328,149)
Public safety
10,975,401
693,947
271,210
1,170,291
(8,839,953)
Community development
3,139,695
3,294,809
1,054,345
-
1,209,459
Parks and recreation
2,560,821
503,128
-
-
(2,057,693)
Publicworks
9,374,004
3,421,588
3,716,378
639,788
(1,596,250)
Interest on long-term debt
46,540
-
(46,540)
Total Governmental Activities
$ 31,381,956
$ 8,295,009
$ 5,550,126
$ 1,877,695
(15,659,126)
General Revenues:
Taxes:
Property taxes, levied for general purpose
Sales taxes
Transient occupancy taxes
Franchise taxes
Othertaxes
Use of money and property
Other
Total General Revenues
Change in Net Position
Net Position, Beginning of Year
Restatement
Net Position, Beginning Year, as restated
Net Position at the End of the Year
The notes to financial statements are an integral part of this statement.
16
10,881,809
6,889,892
2,097,700
1,426,115
168,644
596,871
99,978
22,161,009
6,501,883
87,944,050
(12,497)
87,931,553
$ 94,433,436
CITY OF ROSEMEAD, CALIFORNIA
BALANCE SHEET
GOVERNMENTALFUNDS
JUNE 30, 2022
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable
$ 2,296,450
Special Revenue Funds
$ - $ 1,801,541
$ 4,097,991
Accrued liabilities
210,875
5,192
- 18,559
Other
Total
-
7,707,664
American
18,085,118
Governmental
Governmental
-
General
Rescue Plan
SLFRF
Funds
Funds
Assets:
97,953
Due to other funds
-
-
- 479,751
Cash and investments
$ 28,785,657
$ 7,712,856
$ 10,000,000
$ 23,334,391
$ 69,832,904
Receivables:
3,396,951
7,712,856
10,000,000 2,835,359
23,945,166
Deferred Inflows of Resources:
Accounts receivable
990,758
-
-
17,552
1,008,310
Notes and loans
293,942
-
-
3,207,200
3,501,142
Accrued interest
85,622
-
-
49,410
135,032
Leases
227,176
-
-
-
227,176
Prepaid costs
117,629
-
-
-
117,629
Due from other governments
1,593,295
-
-
1,170,699
2,763,994
Due from other funds
479,751
117,629
Restricted:
479751
Total Assets
$ 32,573,830
$ 7,712,856
$ 10,000,000
$ 27,779,252
$ 78,065,938
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable
$ 2,296,450
$ -
$ - $ 1,801,541
$ 4,097,991
Accrued liabilities
210,875
5,192
- 18,559
234,626
Unearned revenues
-
7,707,664
10,000,000 377,454
18,085,118
Deposits payable
791,673
-
- 42,983
834,656
Due to other governments
97,953
-
- -
97,953
Due to other funds
-
-
- 479,751
479,751
Retentions payable
115,071
115,071
Total Liabilities
3,396,951
7,712,856
10,000,000 2,835,359
23,945,166
Deferred Inflows of Resources:
Unavailable revenues
393,437
-
- 105,051
498,488
Related to leases
227,176
227,176
Total Deferred Inflows of Resources
620,613
105,051
725,664
Fund Balances:
Nonspendable:
Notes and loans
293,942
-
- -
293,942
Prepaid costs
117,629
-
- -
117,629
Restricted:
Community services
-
-
- 4,477,846
4,477,846
Low and moderate income housing
-
-
- 430,522
430,522
Public works
-
-
- 20,040,631
20,040,631
Committed:
Capital projects
436,887
-
- -
436,887
Reserve contingency
9,733,101
-
- -
9,733,101
Assigned.
Building maintenance
71,617
-
- -
71,617
Tree in lieu
60,750
-
- -
60,750
Unassigned (deficit)
17,842,340
(110,157)
17,732,183
Total Fund Balances
28,556,266
24,838,842
53,395,108
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
$ 32,573,830
$ 7,712,856
$ 10,000,000 $ 27,779,252
$ 78,065,938
The notes to financial statements are an integral part of this statement.
17
CITY OF ROSEMEAD, CALIFORNIA
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
JUNE 30, 2022
Amounts reported for governmental activities in the statement of net position are different because:
Total fund balances - governmental funds
Capital assets used in governmental activities are not financial resources and,
therefore, are not reported in the funds.
$ 53,395,108
47,942,777
Long-term liabilities are not due and payable in the current period, and
therefore, are not reported in the funds:
Compensated absences $ (672,452)
Leases (482,787) (1,155,239)
Governmental funds report all pension contributions as expenditures; however,
in the statement of activities, the excess/deficiency of the total pension liability
over/under the plan fiduciary net position is reported as a net pension liability/asset.
CalPERS Miscellaneous Plan net pension liability (4,509,289)
PARS Retirement Enhancement Plan net pension asset 358,035 (4,151,254)
Pension -related deferred outflows of resources that have not been included as
financial uses in the governmental fund activity are as follows:
Contributions made after the actuarial measurement date
1,036,079
Changes in assumptions
6,031
Difference between expected and actual experiences
574,276
Net difference between projected and actual earnings on plan investments
332,410
Adjustments due to differences in proportions
7,124
Difference in proportionate share
202,055
Other post -employment-related deferred outflows of resources that have not been
included as financial uses in the governmental fund activity are as follows:
Contributions made after the actuarial measurement date
277,058
Pension -related deferred inflows of resources that have not been included as
financial resources in the governmental fund activity are as follows:
Difference between expected and actual experiences
(32,312)
Net difference between projected and actual earnings on plan investments
(3,936,371)
Adjustments due to differences in proportions
(245,056)
Difference in proportionate share
(203,527)
Governmental funds report all other post -employment benefits contributions as
expenditures; however, in the statement of net position, the excess of the total
other post -employment benefits asset over the plan fiduciary net position is
reported as a net other post -employment benefits asset.
Other post -employment-related deferred inflows of resources that have not been
included as financial resources in the governmental fund activity are as follows:
Net difference between projected and actual earnings on plan investments
Revenues reported as unavailable revenue in the governmental funds are recognized
in the statement of activities.
Internal service funds are used by management to charge the costs of certain
activities, such as equipment and technology replacement, to individual funds.
The assets and liabilities of the internal service funds must be added to the
statement of net position.
Net Position of Governmental Activities
The notes to financial statements are an integral part of this statement.
18
2,157, 975
277,058
(4,417,266)
52,101
(878,174)
498,488
711,862
$ 94,433,436
CITY OF ROSEMEAD, CALIFORNIA
STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTALFUNDS
FOR THE YEAR ENDED JUNE 30, 2022
Revenues:
Taxes
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Developer participation
Miscellaneous
Total Revenues
Expenditures:
Current.
General government
Public safety
Community development
Parks and recreation
Public works
Capital outlay
Total Expenditures
Excess of Revenues over Expenditures
Other Financing Sources (Uses):
Proceeds from leasing arrangements
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of the Year
27,123,396 170,989
5,156,458 154,098
10,927,864 -
1,752,791 -
2,385,453 -
3,854,124 16,891
256,063
24,332,753 170,989
2,790,643
178,011
178,011
2,966,654
10,484,500 37,778,885
166,466
Special Revenue Funds
50,372
10,978,236
1,394,238
3,147,029
Other
Total
3,641,465
American
Governmental
Governmental
General
Rescue Plan SLFRF
Funds
Funds
$ 21,348,831
$ - $ -
$ 121,679
$ 21.470,510
3,332,016
- -
-
3,332,016
682,567
170,989 -
9,728,693
10,582,249
743,971
- -
504,026
1,247,997
360,557
- -
9,228
369,785
577,616
- -
-
577,616
-
- -
114,662
114,662
77,838
6,212
64,050
27,123,396 170,989
5,156,458 154,098
10,927,864 -
1,752,791 -
2,385,453 -
3,854,124 16,891
256,063
24,332,753 170,989
2,790,643
178,011
178,011
2,966,654
10,484,500 37,778,885
166,466
5,477,022
50,372
10,978,236
1,394,238
3,147,029
42,546
2,427,999
3,641,465
7,512,480
2,133,182
2,389,245
7,428,269
31,932,011
3,056,231 5,846,874
178,011
178,011
3,056,231 6,024,885
25,587,612 21,782,611 47,370,223
$ 28,556,266 $ $ $ 24,838,842 $ 53,395,108
The notes to financial statements are an integral part of this statement.
19
CITY OF ROSEMEAD, CALIFORNIA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2022
Amounts reported for governmental activities in the statement of activities are different because:
Net change in fund balances - total governmental funds
Governmental funds report capital outlays as expenditures. However, in the
statement of activities, the cost of these assets is allocated over their estimated
useful lives and reported as depreciation expense. This is the amount by which
capital outlays exceeded depreciation expense in the current period.
Capital outlay
Depreciation
Long-term liabilities reported in the statement of activities do not
require the use of current financial resources and, therefore, are not reported as
expenditures in governmental funds.
Pension obligation expenses reported in the statement of activities do not require
the use of current financial resources and, therefore, are not reported as
expenditures in governmental funds.
Other post -employment benefits obligation expenses reported in the statement of
activities do not require the use of current financial resources and, therefore, are
not reported as expenditures in governmental funds.
Revenues reported as unavailable revenue in the governmental funds are
recognized in the statement of activities. These are included in the operating
contributions and miscellaneous income in the statement of activities.
Internal service funds are used by management to charge the costs of certain
activities, such as equipment and technology replacement, to individual funds.
The net revenues of the internal service funds are reported with governmental
activities.
Change in Net Position of Governmental Activities
The notes to financial statements are an integral part of this statement.
20
$ 2,802,407
(2,720,935)
6,024,885
81,472
(55,965)
283,522
134,261
104,953
(71,245)
$ 6,501,883
CITY OF ROSEMEAD, CALIFORNIA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2022
Assets:
Current Assets:
Cash and investments
Receivables:
Interest receivable
Total Current Assets
Noncurrent Assets:
Capital assets, net of accumulated depreciation
Total Noncurrent Assets
Total Assets
Net Position:
Invested in capital assets
Unrestricted
Total Net Position
Governmental
Activities
Internal
Service Funds
$ 706,170
1,587
707,757
4,105
4,105
711,862
4,105
707,757
$ 711,862
The notes to financial statements are an integral part of this statement.
21
CITY OF ROSEMEAD, CALIFORNIA
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2022
Operating Revenues:
Miscellaneous
Total Operating Revenues
Operating Expenses:
Contractual services
Depreciation expense
Total Operating Expenses
Operating Loss
Nonoperating Revenues (Expenses):
Interest revenue
Total Nonoperating
Revenues(Expenses)
Change in Net Position
Net Position, Beginning of the Year
Net Position, End of the Year
The notes to financial statements are an integral part of this statement.
22
Governmental
Activities
Internal
Service Funds
$ 48,940
48,940
118,011
1,866
119,877
(70,937)
(308)
(308)
(71,245)
783,107
$ 711,862
CITY OF ROSEMEAD, CALIFORNIA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2022
Cash Flows from Operating Activities:
Cash received from customers and users
Cash paid to suppliers for goods and services
Net Cash Used by Operating Activities
Cash Flows from Investing Activities:
Investment earnings
Net Cash Used by Investing Activities
Net Decrease in Cash and Cash Equivalents
Cash and Cash Equivalents, Beginning of the Year
Cash and Cash Equivalents, End of the Year
Reconciliation of Operating Loss to Net Cash
Used by Operating Activities:
Operating loss
Adjustments to reconcile operating loss to
net cash used by operating activities:
Depreciation
Decrease in accounts payable
Total Adjustments
Net Cash Provided by Operating Activities
The notes to financial statements are an integral part of this statement.
23
Governmental
Activities
Internal
Service Funds
-
$ 48,940
(142,643)
(93,703)
(700)
(700)
(94,403)
800,573
$ 706,170
$ (70,937)
1,866
(24,632)
(22,766)
$ (93,703)
CITY OF ROSEMEAD, CALIFORNIA
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
JUNE 30, 2022
Private -Purpose
Trust Fund
Liabilities:
Accounts payable
Accrued interest
Due to external parties/other agencies
Long-term liabilities:
Bonds payable, due within one year
Bonds payable, due in more than one year
Total Liabilities
Net Position:
Restricted for the dissolution
of the former Redevelopment Agency
Total Net Position
1,438
221,203
216,861
2,622,014
18,924,248
21,985,764
(14,621,771)
$ (14,621,771)
The notes to financial statements are an integral part of this statement.
24
Successor
Agency
Assets:
Cash and investments
$ 5,776,706
Receivables:
Notes and loans
201,314
Interest receivable
8,106
Prepaid costs
118,441
Restricted cash and investments with fiscal agents
1,123,012
Total Assets
7,227,579
Deferred Outflows of Resources:
Deferred charge on refunding
136,414
Total Deferred Outflows of Resources
136,414
Liabilities:
Accounts payable
Accrued interest
Due to external parties/other agencies
Long-term liabilities:
Bonds payable, due within one year
Bonds payable, due in more than one year
Total Liabilities
Net Position:
Restricted for the dissolution
of the former Redevelopment Agency
Total Net Position
1,438
221,203
216,861
2,622,014
18,924,248
21,985,764
(14,621,771)
$ (14,621,771)
The notes to financial statements are an integral part of this statement.
24
CITY OF ROSEMEAD, CALIFORNIA
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2022
Additions:
Taxes
Interest and (loss) on investments
Total Additions
Deductions:
Administrative expenses
Interest expense
Contributions to other governments
Total Deductions
Change in Net Position
Net Position, Beginning of Year
Net Position, End of Year
Private -Purpose
Trust Fund
Successor
Agency
$ 4,072,385
(2,654)
4,069,731
154,141
919,774
428,978
1,502,893
2,566,838
(17,188,609)
$ (14,621,771)
The notes to financial statements are an integral part of this statement.
25
Notes to the
Financial Statements
THIS PAGE INTENTIONALLY LEFT BLANK
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
Note 1:
Summary of Significant Accounting Policies........................................................................28
a. Reporting Entity
b. Basis of Accounting and Measurement Focus
c. Major and Fiduciary Fund Types
d. Investments
e. Cash Equivalents
f. Capital Assets
g. Compensated Absences
h. Prepaid Items
i. Fund Balance
j. Use of Estimates
k. Pension Plans
I. Other Post -Employment Benefit Plans (OPEB)
m. Property Taxes
n. Deferred Outflows and Deferred Inflows of Resources
o. Changes in Accounting Principles and New GASB Pronouncements
Note 2:
Stewardship, Compliance, and Accountability.....................................................................38
a. Deficit Fund Balances/Net Position
b. Budgetary
Note3:
Cash and Investments..........................................................................................................38
Note 4:
Loans Receivable.................................................................................................................41
Note 5:
Interfund Balances................................................................................................................43
Note6:
Leases..................................................................................................................................43
Note7:
Capital Assets.......................................................................................................................45
Note 8:
Compensated Absences......................................................................................................46
Note9:
Risk Management.................................................................................................................46
a. Description of Self -Insurance Pool Pursuant to Joint Powers Agreement
b. Primary Self -Insurance Programs of the Authority
c. Purchased Insurance
d. Adequacy of Protection
Note 10:
Defined Benefit Pension Plans.............................................................................................48
a. Aggregate Information on all Defined Benefit Pension Plans
b. Defined Benefit Pension Plan — CaIPERS
c. PARS Retirement Enhancement Plan
Note 11:
Defined Contribution Pension Plan......................................................................................57
Note 12:
Post -Employment Benefit Plan.............................................................................................58
Note 13:
Commitments and Contingencies........................................................................................62
Note14:
Successor Agency................................................................................................................62
a. Cash and Investments
b. Long -Term Debt
c. Pledged Revenue
KPI
THIS PAGE INTENTIONALLY LEFT BLANK
27
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
I. SIGNIFICANT ACCOUNTING POLICIES
Note 1: Summary of Significant Accounting Policies
a. 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 forthat 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 Authorit
The Authority provides for the financing or refinancing of public capital improvements
and working capital requirements of local agencies that enter into contractual
arrangements with the Authority. Separate financial statements are not prepared.
Rosemead Housing Development Corporation
The Corporation accounts for the construction, financing and operations of low and
moderate -income housing. It is a California nonprofit benefit corporation organized
under Section 501(c)(3) of the Internal Revenue Code. The activities of the Corporation
are recorded in the RHDC special revenue fund. Separately issued financial
statements of the Corporation can be obtained from the Finance Department.
`Q
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2022
Note 1: Summary of Significant Accounting Policies (Continued)
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.
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.
29
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2022
Note 1: Summary of Significant Accounting Policies (Continued)
Amounts paid to acquire capital assets are capitalized as assets in the
government -wide financial statements, rather than reported as 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, liabilities, fund equity, revenues and expenditures
or expenses, as appropriate. Governmental resources are allocated to and accounted
for in individual funds based upon the purposes for which they are to be spent and the
means by which spending activities are controlled.
Fund financial statements for the primary government's governmental, proprietary, and
fiduciary funds are presented 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.
Funds
In the fund financial statements, governmental funds are presented using the
modified -accrual basis of accounting. Their revenues are recognized when they
become measurable and available as net current assets. Measurable means that the
amounts can be estimated, or otherwise determined. Available means that the
amounts were collected during the reporting period or soon enough thereafter to be
available to finance the expenditures accrued for the reporting period. The City uses a
sixty-day availability period except for grants which is 120 days.
Revenue recognition is subject to the measurable and available criteria for the
government funds in the fund financial statements. Exchange transactions are
recognized as revenues in the period in which they are earned (i.e., the related goods
or services are provided). Locally imposed derived tax revenues are recognized as
revenues in the period in which the underlying exchange transaction on which they are
based takes place. Imposed non-exchange transactions are recognized as revenues
in the period for which they were imposed. If the period of use is not specified, they are
recognized as revenues when an enforceable legal claim to the revenues arises or
when they are received, whichever occurs first. Government -mandated and voluntary
non-exchange transactions are recognized as revenues when all applicable eligibility
requirements have been met.
30
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2022
Note 1: Summary of Significant Accounting Policies (Continued)
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.
31
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30. 2022
Note 1: Summary of Significant Accounting Policies (Continued)
c. Major and Fiduciary Fund Types
The City's major governmental funds are as follows:
General Fund — Accounts for all financial resources except those required to be
accounted for in another fund. These resources are devoted to financing the
general services that the City performs for its residents.
• American Rescue Plan Fund —Accounts for the City's portion of the funds received
through the American Rescue Plan Act. The Act provides a total of
$250 billion in assistance to states, counties, municipalities, territories, and tribal
governments to cover expenses, make up for lost revenue and east the overall
economic impact from the COVID-19 pandemic.
• State and Local Fiscal Recovery Fund (SLFRF)—Accounts for the City's portion of
the funds received through the American Rescue Plan Act that have been
approved for election of the Treasury's revenue loss application. These funds are
restricted for general governmental services and various Council approved City
projects available to be spent through December 31, 2026.
The City's Fiduciary Funds are as follows:
• Private -purpose Trust Fund —Accounts 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 and technology
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.
32
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2022
Note 1: Summary of Significant Accounting Policies (Continued)
e. Cash Equivalents
For purposes of the statement of cash flows, cash equivalents are defined as short-term,
highly liquid investments that are both readily convertible to known amounts of cash or so
near their maturity that they present insignificant risk of changes in value because of
changes in interest rates. Cash equivalents also represent the proprietary funds' share in
the cash and investment pool of the City of Rosemead. Cash equivalents have an original
maturity date of three months or less from the date of purchase. For purposes of the
statement of cash flows, the entire balance of cash and investments on the combined
balance sheet for the internal service fund is considered cash and cash equivalents.
f. 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 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 is charged as an
expense against operations and accumulated depreciation is reported on the respective
balance sheet.
The following schedule summarizes capital asset useful lives:
Building improvements
15-50 years
Improvements other than buildings
3-15 years
Machinery and equipment
7 years
Autos and trucks
5 years
Furniture and office equipment
7 years
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.
19191
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2022
Note 1: Summary of Significant Accounting Policies (Continued)
In accordance with generally accepted accounting principles, a liability is recorded for
unused vacation and similar compensatory leave balances since the employees'
entitlement to these balances is attributable to services already rendered and it is probable
that virtually all of these balances will be liquidated by either paid time off or payments upon
termination or retirement. All vacation is accrued when incurred in the government -wide
level financial statements.
All unused vacation and administrative leave hours are accrued when incurred in the
government -wide level financial statements. A current liability is accrued in the
governmental funds for employee leave benefits expected to be paid from expendable,
available financial resources as of the balance sheet date. Compensated absences are
primarily liquidated by the General Fund.
h. Prepaid Items
Prepaid items are reported in the governmental funds under the consumption method and
are offset by a nonspendable designation in fund balance to indicate that they are not
available for appropriation and are not expendable financial resources.
i. Fund Balance
The following classifications describe the relative strength of the spending constraints
placed on the purposes for which resources can be used:
• Nonspendable — This includes amounts that cannot be spent because they are either
not in spendable form or must be maintained intact pursuant to legal or contractual
requirements, such as prepaids, inventory, or endowments.
• Restricted — This includes amounts that can be spent only for specific purposes
imposed by creditors, grantors, contributors, or laws and regulations of other
governments through enabling litigations.
• Committed — This includes amounts that can be used only for the specific purposes
pursuant to constraints imposed by formal action of the City's highest authority, the
City Council. The formal action that is required to be taken to establish, modify, or
rescind a fund balance commitment is Council resolution.
• Assigned — This includes amounts that are designated by the City Council,
City Manager, or Finance Director for specific purposes and do not meet the criteria to
be classified as restricted or committed.
• Unassigned — This is the residual classification that includes all spendable amounts
not contained in the other classifications. The General Fund is the only fund that reports
a positive unassigned fund balance. In other governmental funds, it is not appropriate
to report a positive unassigned fund balance amount. However, in governmental funds
other than the General Fund, if expenditures incurred for specific purposes exceed
amounts that are restricted, committed, or assigned to those purposes, it may be
necessary to report a negative unassigned fund balance in that fund.
When both restricted and unrestricted resources are available for use when an expenditure
is incurred, it is the City's policy to use restricted resources first, then unrestricted resources
as they are needed. It is the City's policy to consider committed amounts as being reduced
first, followed by assigned amounts, and then unassigned amounts when expenditures are
incurred for purposes for which amounts in any of those unrestricted fund balance
classifications could be used. 34
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2022
Note 1: Summary of Significant Accounting Policies (Continued)
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting
principles requires management to make estimates and assumptions that affect
certain reported amounts and disclosures. Accordingly, actual results could differ from
those estimates.
k. Pension Plans
For purposes of measuring the net pension liability, deferred outflows and inflows
of resources related to pensions, and pension expense, information about the fiduciary
net position and additions to/deductions from the fiduciary net position have been
determined on the same basis as they are reported by the Plan Administrators. For
this purpose, benefit payments (including refunds of employee contributions) are
recognized when currently due and payable in accordance with the benefit terms.
Investments are reported at fair value. CalPERS audited financial statements are publicly
available reports that can be obtained at CaIPERS' website, at www.calpers.ca.gov.
Copies of the PARS annual financial report may be obtained from
PARS, 4350 Von Karman Avenue, Suite 100, Newport Beach, California 92660.
GASB 68 requires that the reported results must pertain to liability and asset information
within certain defined timeframes. For this report, the following timeframes are used.
CalPERS-Cost sharing Multiple -Employer Plan:
Valuation Date (VD)
Measurement Date (MD)
Measurement Period (MP)
PARS -Single Employer Agent Plan:
Valuation Date (VD)
Measurement Date (MD)
Measurement Period (MP)
June 30, 2020
June 30, 2021
July 1, 2020 to June 30, 2021
June 30, 2021
June 30, 2022
July 1, 2021 to June 30, 2022
I. 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 (VD) June 30, 2020
Measurement Date (MD) June 30, 2021
Measurement Period (MP) July 1, 2020 to June 30, 2021
35
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2022
Note 1: Summary of Significant Accounting Policies (Continued)
Gains and losses related to changes in total OPEB liability and fiduciary net position are
recognized in OPEB expense systematically over time. Amounts are first recognized in
OPEB expense for the year the gain or loss occurs. The remaining amounts are
categorized as deferred outflows and deferred inflows of resources related to OPEB and
are to be recognized in future OPEB expense.
The recognition period differs depending on the source of the gain or loss:
Net different between projected and actual earning on
OPEB plan Investments 5 years
Expected average remaining service lifetime
All other amounts (EARSL) (8.2 Years at June 30, 2020)
m. Property Taxes
The County of Los Angeles is responsible for the assessment, levy, and collection of
property taxes for all properties within Los Angeles County and subsequently remits the
amount due to the City in installments during the year. The County is permitted by State
Law (Article XIII A of the California Constitution) to levy taxes at one percent (1%) of full
market value at the time of purchase and can increase the property's value by no more
than two percent (2%) per year. The property taxes are recorded initially in a County pool
and are then allocated to cities. Prior to the passage of Proposition 13, which established
the one percent (1%) limit, Rosemead was one of numerous cities in California that either
levied no general property taxes or which levied very low rates. Because the property tax
allocation after Proposition 13 was based on the allocation priorto 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
Levy date
January 1
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 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 deferred outflows of resources on pensions and OPEB (described
previously) in the statement of net position. The pension -related deferred outflows include
such items as: contributions made after the actuarial measurement date, changes in
assumptions, differences between expected and actual experiences, the net difference
36
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30. 2022
Note 1: Summary of Significant Accounting Policies (Continued)
between projected and actual earnings on plan investments, adjustments due to
differences in proportionate share, and differences in the proportionate share. All of the
items, with the exception of the net difference between projected and actual earnings on
plan investments which is recognized over five years, are recognized over the expected
average remaining service life of plan members.
In addition to liabilities, the statement of net position 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 will not be recognized as an inflow of resources (revenue) until that
time. The City has deferred inflow of resources deferred revenue on the fund financial
statements — unavailable revenue. Deferred inflows related to pensions and OPEB
(described previously) are reported in the statement of net position. The deferred inflows
related to pensions include changes in assumptions, the difference in expected and actual
experiences, adjustments due to differences in proportionate share, and the difference in
proportionate share; these items are recognized over the expected average remaining
service life of plan members.
o. Changes in Accounting Principles and New GASB Pronouncements
During the year ended June 30, 2022, the City adopted the following new accounting
standard issued by the Governmental Accounting Standards Board (GASB):
GASB Statement No. 87 Leases enhances usefulness and comparability of financial
statements among governments by requiring lessees and lessors to report leases using a
single model. This statement requires recognition of certain lease assets and liabilities for
leases that were previously classified as operating leases and recognizes inflows or
outflows of resources based on the payment provisions of the lease contracts. Under
GASB Statement No. 87, a lessee is required to recognize a lease liability and an intangible
right -to -use lease asset, and a lessor is required to recognize a lease receivable and
deferred inflow of resources.
Lease receivable
Deferred inflow of resources
Intangible asset, net of amortization
Capital leases payable recorded
Lease receivable
Impact to Beginning Fund
Balance for Fiscal Year
Ended June 30. 2022
$ 227,176
(227,176)
Impact to Beginning Net
Position for Fiscal Year
Ended June 30, 2022
488,371
(482,787)
227.176
Deferred inflow of resources (227,176)
Net expenses, GASB 87 implementation (18,081)
Total restatement of Net Position $ (12,497)
37
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2022
II. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
Note 2: Stewardship, Compliance, and Accountability
a. Deficit Fund Balances/Net Position
The Community Development Block Grant (CDBG), Measure R and City Grants nonmajor
special revenue funds, and Measure R nonmajor capital projects fund reported deficit fund
balances in the amounts of $5,106, $26,662, and $78,389, respectively, as of
June 30, 2022. The fund deficit balances are due to the timing of grant reimbursements
from the grantor agencies.
b. Budgetary Violations
For the year ended June 30, 2022, the Air Quality Management District nonmajor special
revenue fund had $5,288 in expenditures in excess of appropriations.. In addition, the
Measure H Grant Fund did not implement a legally adopted budget for the year ended
June 30. 2022.
III. DETAILED NOTES ON ALL FUNDS
Note 3: Cash and Investments
Cash and investments as of June 30, 2022, are classified in the accompanying financial
statements as follows:
Statement of Net Position
Cash and Investments $ 70,539,074
Statement of Fiduciary Net Position
Cash and Investments 5,776,706
Restricted Cash and Investment with Fiscal Agents 1,123,012
Total Cash and Investment $ 77,438,792
Cash and Investments as of June 30, 2022, consist of the following:
Deposits with financial insttutions
I nvestments
Total Cash and Investments
38
$ 9,068,434
68, 370, 358
$ 77,438,792
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30. 2022
Note 3: Cash and Investments (Continued)
Investments Authorized by the California Government Code and the City's Investment Policy
The table below identifies the investment types that are authorized for the City by the
California Government Code and the City's investment policy. The table also identifies
certain provisions of the California Government Code (or the City's investment policy, if
more restrictive) that address interest rate risk, credit risk, and concentration of credit risk.
This table does not address investments of debt proceeds held by bond trustee that are
governed by the provisions of debt agreements of the City, rather than the general
provisions of the California Government Code or the City's investment policy.
Authorized
by MaAmum Ma>omum
investment Mabmum Percentage Imestmentin
Authorized Investment Type Policy Maturity of Portfolio One Issuer
U.S. Treasury Obligations
Yes
5 years
None
None
U.S. Agency Securities
Yes
5 years
70%
35%
Banker's Acceptances
Yes
180 days
20%
30%
Commercial Paper
Yes
180 days
15%
10%
Negotiable Certificates for Deposits
Yes
5 years
30%
None
Medium Term Notes
Yes
5 years
30%
None
Money Market Mutual Funds
Yes
NSA
20%
10%
Local Agency Imestment Funds (LAI F)
Yes
ITA
None
$75M
Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the
fair value of an investment. Generally, the longer the maturity of an investment, the greater
the sensitivity of its fair value to changes in market interest rates. One of the ways that the
City manages its exposure to interest rate risk is by purchasing a combination of shorter
term and longer-term investments and by timing cash flows from maturities so that a portion
of the portfolio is maturing or coming close to maturity evenly over time as necessary to
provide the cash flow and liquidity needed for operations.
Information about the sensitivity of the fair values of the City's investments
(including investments held by bond trustee) to market interest rate fluctuations is provided
by the following table that shows the distribution of the City's investments by maturity:
Remaining Maturity (in Months)
12 Months 13 to 24 25 to 60
I mestment Type or Less months months Total
State i nvestment pool
Certificates of Deposit
U.S. agency securities
Medium-term notes
Field by bond trustee
Money Market Mutual Funds
Total
$ 60,670,576 $ -
2,229,062 487,870
324,139 747,953
730,780 -
- $ 60,670,576
721,821 3,438,753
312,924 1,385,016
1,022,221 1,753,001
1,123,012 - - 1,123,012
$ 65,077,569 $ 1,235,823 $ 2,056,966 $ 68,370,358
39
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2022
Note 3: Cash and Investments (Continued)
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.
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, 2022 the City did not have any investments in one issuer greater than 5%.
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository
financial institution, a government will not be able to recover its deposits or will not be able
to recover collateral securities that are in the possession of an outside party. The custodial
credit risk for investments is the risk that, in the event of the failure of the counterparty
(e.g., broker-dealer) to a transaction, a government will not be able to recover the value of
its investment or collateral securities that are in the possession of another party. The
California Government Code and the City's investment policy do not contain legal or policy
requirements that would limit the exposure to custodial credit risk for deposits or
investments, other than the following provision for deposits: The California Government
Code requires that a financial institution secure deposits made by state or local
governmental units by pledging securities in an undivided collateral pool held by a
depository regulated under state law (unless so waived by the governmental unit). The fair
value of the pledged securities in the collateral pool must equal at least 110% of the total
amount deposited by the public agencies. California law also allows financial institutions to
secure City deposits by pledging first trust deed mortgage notes having a value of 150%
of the secured public deposits. As of June 30, 2022, the City had deposits with financial
institutions in excess of federal depository insurance limits by $3,041,728 that were held in
collateralized accounts. As of June 30, 2022, the Successor Agency had deposits with
financial institutions in excess of federal depository insurance limits by $5,526,706 that
were held in collateralized accounts.
40
Legal
S&P Ratings Moody's Rating
Investment Type
Totals
Aatng
WA
A- BBB+ A+ AA+ Al A3
State lmesherb Pool
$ 60,670,576
WA
$ 60,670,576
$ - S - $ - S - $ - $ -
CertficatesofDeposit
3,438,753
WA
3,436,753
- - - - - -
U.S.Agency Securitles
1,385,016
WA
-
- - - 1,385,016 - -
MediumTennNotes
1,753,001
WA
-
500,438 246,873 230,343 - 503,113 272,234
Held by Bond Trustee.
Money Market Mutual Funds
1,123,012
MAple
11123,012
- - -
Total
$68,370,358
$65,232,341
$ 500,435 $ 246,873 $230.343 $1385016 $ 503,113 $ 272,234
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, 2022 the City did not have any investments in one issuer greater than 5%.
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository
financial institution, a government will not be able to recover its deposits or will not be able
to recover collateral securities that are in the possession of an outside party. The custodial
credit risk for investments is the risk that, in the event of the failure of the counterparty
(e.g., broker-dealer) to a transaction, a government will not be able to recover the value of
its investment or collateral securities that are in the possession of another party. The
California Government Code and the City's investment policy do not contain legal or policy
requirements that would limit the exposure to custodial credit risk for deposits or
investments, other than the following provision for deposits: The California Government
Code requires that a financial institution secure deposits made by state or local
governmental units by pledging securities in an undivided collateral pool held by a
depository regulated under state law (unless so waived by the governmental unit). The fair
value of the pledged securities in the collateral pool must equal at least 110% of the total
amount deposited by the public agencies. California law also allows financial institutions to
secure City deposits by pledging first trust deed mortgage notes having a value of 150%
of the secured public deposits. As of June 30, 2022, the City had deposits with financial
institutions in excess of federal depository insurance limits by $3,041,728 that were held in
collateralized accounts. As of June 30, 2022, the Successor Agency had deposits with
financial institutions in excess of federal depository insurance limits by $5,526,706 that
were held in collateralized accounts.
40
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2022
Note 3: Cash and Investments (Continued)
Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is
regulated by the California Government Code under the oversight of the Treasurer of the
State of California. The fair value of the City's investment in this pool is reported in the
accompanying financial statements at amounts based upon the City's pro -rata share of the
fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of
that portfolio). The balance available for withdrawal is based on the accounting records
maintained by LAIF, which are recorded on an amortized cost basis. LAIF is not registered
with the Securities and Exchange Commission and is not rated. Deposits and withdrawals
in LAIF are made on the basis of $1 and not fair value. Accordingly, the City's investment
in this pool is measured on uncategorized inputs not defined as Level 1, 2, or 3.
Fair Value Measurements
Generally accepted accounting principles establishes a fair value hierarchy that prioritizes
the inputs to valuation techniques used to measure 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: Loans receivable
Loans receivable consisted of the following at June 30, 2022:
Balance Balance
Governmental Activities: June 30, 2021 Additions Deletions June 30, 2022
Computer Loans
San Gabriel Valley Water Co. Loan Phase I
San Gabriel Valley Water Co. Loan Phase II
Rio Hondo Community Development Co. Loan
EI Monte Cemetery Association Loan
Home Improvements
First Time Home Buyers Program
Total
a. Computer Purchase Loans
$ - $
2,000 $ 470
$ 1,530
49,380
- 8,230
41,150
24,691
- 4,115
20,576
227,086
- -
227,086
3,600
- -
3,600
2,799,560
- 177,560
2,622,000
585,200
585,200
$ 3,689,517 $
2,000 $ 190,375
$ 3,501,142
The City provides a computer purchase loan program for all full-time employees for up to
$2,000 at 0% interest for a term of 24 months. Loans are repaid through payroll deductions
and are due and payable in full upon termination or separation of employment. The
outstanding balance as of June 30, 2022 is $1,530.
41
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2022
Note 4: Loans receivable (Continued)
b. San Gabriel Valley Water Company Phase I
The City has an outstanding loan with the San Gabriel Valley Water Company (Phase 1)
covering the installation of water facilities on Garvey Avenue from Walnut Grove Avenue
to Rosemead Place. The loan was initially made through the Rosemead Redevelopment
Agency in the amount of $356,000. On October 26, 1987, the loan was assigned to the
City of Rosemead with a balance due of $329,197. The term of the loan is 40 years at 0%
interest. Annual payments are 2.5% of the assigned loan amount with final payment due
in fiscal year 2026-27. The outstanding balance as of June 30, 2022 is $41,150.
c. 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, 2022 is $20,576.
d. Rio Hondo Community Development Corporation
On April 27, 2010, the City Council entered into an Agreement with Rio Hondo Community
Development Corporation (RHCDC) for the production of affordable housing. The RHCDC
identified a property for sale (8628 Landis View Lane) that was as suitable for affordable
housing for a total purchase price of $428,400. The City Council approved a 0% deferred
payment loan in the amount of $227,086 from HOME CHDO Set -Aside Funds and a 0%
forgivable loan by the Rosemead Community Development Commission (CDC) from the
Low- and Moderate -Income Housing Fund in the amount of $201,314. The unit was
restricted as a rental property for low- to moderate -income households and be subject to a
55 -year affordability covenant. The $227,086 City loan is due at the end of the
fifty -five-year term, while the loan from the CDC is due only in the event that the RHCDC
breaches or defaults on the provision of the Note.
e. EI Monte Cemetery
The City loaned $12,000 to the EI Monte Cemetery Association in order to finance a portion
of the costs for access road improvements at Savannah Memorial Park
(California Historic Landmark No. 1046) via adoption of Resolution No. 2013-47. The
interest-free loan is to be paid in annual installments of $1,200 over a ten (10) year period.
The amount outstanding as of June 30, 2022 is $3,600.
f. 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, 2022 is $2,622,000.
g. 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, 2022 is $585,200.
42
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2022
Note 5: Interfund Balances
Due to/due from other funds for the year ending June 30, 2022, consisted of $21,059,
$189,965, and $71,175 due to the General Fund from the Local Transportation/Sidewalk Grant,
Community Development Block Grant, and Measure R Capital Project funds for short-term
loans made to those funds from the General Fund resulting from deficit cash balances in those
funds.
In addition, $197,552 was due to the General Fund from the Rosemead Housing Development
Corporation Fund for administrative services provided by the General Fund for the time period
of January 1, 2022 -June 30, 2022.
Note 6: Leases
a. Lease Receivable and Inflows of Resources
For the year ended June 30, 2022, the financial statements include the adoption of
GASB Statement No. 87, Leases. The primary objective of this statement is to enhance
the relevance and consistency of information about governments' leasing activities. This
statement establishes a single model for lease accounting based on the principle that
leases are financings of the right to use an underlying asset. Underthis Statement, a lessee
is required to recognize a lease liability and an intangible right -to -use lease asset, and a
lessor is required to recognize a lease receivable and a deferred inflow of resources. For
additional information, refer to the disclosures below.
Effective July 1, 2021, the City implemented GASB 87 impacting their two leases with
AT&T. Upon implementation, the leases had 60 months remaining and an initial lease
receivable was recorded in the amount of $261,589. The lessee is required to make
monthly fixed principal payments of $2,867 and $3,642 to the City and are currently
interest-free. The City recognized $34,413 of lease revenue during the year and has a
balance in lease receivable and deferred inflows related to leases of $227,176 at
June 30, 2022.
Principal and Interest Expected to Maturity
Governmental Activities
Year ending
June 30,
Principal Interest
2023
$ 41,389 $ -
2024
43,715 -
2025
43,715 -
2026
43,715 -
2027
43,715 -
2028-2032
10,927 -
Total
$ 227,176 $ -
a,
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2022
Note 6: Leases (Continued)
b. Lease Payable
In April 2019, the City entered into a master equity lease agreement with Enterprise
Financial Management (EFM) to obtain vehicles. Between April 2019 and June 2022, the
City entered into 19 lease agreements with EFM. The lease term per vehicle is 5 years.
The monthly amount of the base rent per vehicle varies by agreement. As of June 30, 2022,
the lease liability outstanding amounted to $482,787, while the total intangible asset valued
amounted to $488,371, which includes accumulated amortization of $268,436.
The following is a summary of changes in capital leases of the City for the year ended
June 30, 2022:
Beginning Due in
Balance Additions Deletions Ending Balance One Year
$ 434,971 $ 178,011 $ 130,195 $ 482,787 $ 103,206
Future principal and interest requirements to maturity for the combined capital lease liability
as of June 30, 2022 are as follows:
Future Principal and Interest Requirements
44
Total Payments
$ 145,193
166,099
140,627
74,984
57,594
$ 584,497
Governmental Actiuties
Year ending
June 30,
Principal
Interest
2023
$ 103,206
$ 41,987
2024
134,543
31,556
2025
124,146
16,481
2026
65,995
8,989
2027
54,897
2,697
Total
$ 482,787
$ 101,710
44
Total Payments
$ 145,193
166,099
140,627
74,984
57,594
$ 584,497
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30. 2022
Note 7: Capital Assets
Capital asset activity was as follows for the year ended June 30, 2022:
Total capital assets not
Balance
CIP
Balance
Governmental Activities:
June 30, 2021
Transfers Additions Deletions
June 30, 2022
Capital assets not being depreciated:
Buildings
24,957,390 - -
- 24,957,390
Land
$ 4,417,104
$ - $ - $ -
$ 4,417,104
Construction in progress
305,176
(1,426,660) 2,565,442 -
1,443,958
Total capital assets not
11,080,189
- 521,860
being depreciated
4,722,280 (1,426,660) 2,565,442
- 5,861,062
Depreciable capital assets:
- 2,582,671
Machinery and equipment
Buildings
24,957,390 - -
- 24,957,390
Improvements other than buildings
5,536,168 - -
- 5,536,168
Machinery and equipment
477,147 - -
- 477,147
Autos and trucks
1,500,515 - -
140,278 1,360,237
Furniture and office equipment
764,425 - -
- 764,425
Infrastructure
69,417,163 1,426,660 -
- 70,843,823
Right -to -use leased vehicles
571,059 - 236,965
51,217 756,807
Total capital assets
191,495 62,610,177
Total capital assets,
being depreciated/amortized
103,223,867 1,426,660 236,965
191,495 104,695,997
Less: accumulated depreciation/amortization for
Buildings
11,080,189
- 521,860
- 11,602,049
Improvements other than buildings
2,298,270
- 284,401
- 2,582,671
Machinery and equipment
393,859
- 24,115
- 417,974
Autos and trucks
1,269,660
- 60,742
140,278 1,190,124
Fumiture and office equipment
750,820
- 2,815
- 753,635
Infrastructure
44,137,487
- 1,657,801
- 45,795,288
Right-to-useleased vehicles
148,586
171,067
51,217 268,436
Total accumulated depreciation/amortization
60,078,871
2,722,801
191,495 62,610,177
Total capital assets,
being depreciated/amortized, net
43,144,996
1,426,660 2,959,766
- 42,085,820
Government activities
capital assets, net
$ 47,867,276
$ $ 394,324
$ $ 47,946,882
Depreciation and amortization expense was charged to functions/programs of the primary
government as follows:
Governmental Acbvibes Total
General Government
$ 4,541
Public Safety
23,013
Public Works
2,527,008
Community development
14,353
Parks and recreation
152,020
Internal Service Funds
1,866
Totals
$ 2,722,801
45
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2022
Note 8: Compensated Absences
Compensated absences activities for the year ended June 30, 2022, is as follows:
Beginning Due in
Balance Additions Deletions Ending Balance One Year
$ 664,303 $ 323,573 $ 315,424_ $ 672,452 $ 319,293
Compensated absences have no repayment schedule and become payable as used by
employees. Compensated absences are liquidated through the City's General Fund.
Note 9: Risk Management
a. Description of Self -Insurance Pool Pursuant to Joint Powers Agreement
The City of Rosemead is a member of the California Joint Powers Insurance Authority
(Authority). The Authority is composed of 124 California public entities and is organized
under a joint powers agreement pursuant to California Government Code §6500 at seq.
The purpose of the Authority is to arrange and administer programs for the pooling of
self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group
purchased insurance for property and other lines of coverage. The California JPIA began
covering claims of its members in 1978. Each member government has an elected official
as its representative on the Board of Directors. The Board operates through a nine -member
Executive Committee.
b. Primary Self -Insurance Programs of the Authority
Each member pays an annual contribution at the beginning of the coverage period.
A retrospective adjustment is then conducted annually thereafter, for coverage years
2012-13 and prior. Coverage years 2013-14 and forward are not subject to routine annual
retrospective adjustment. The total funding requirement for primary self-insurance
programs is based on an actuarial analysis. Costs are allocated to individual agencies
based on payroll and claims history, relative to other members of the risk -sharing pool.
Primary Liability Program
In the liability program claims are pooled separately between police and general
government exposures. (1) The payroll of each member is evaluated relative to the payroll
of other members. A variable credibility factor is determined for each member, which
establishes the weight applied to payroll and the weight applied to losses within the
formula. (2) The first layer of losses includes incurred costs up to $100,000 for each
occurrence and is evaluated as a percentage of the pool's total incurred costs within the
first layer. (3) The second layer of losses includes incurred costs from $100,000 to
$500,000 for each occurrence and is evaluated as a percentage of the pool's total incurred
costs within the second layer. (4) Incurred costs from $500,000 to $50 million, are
distributed based on the outcome of cost allocation within the first and second loss layers.
H1
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30. 2022
Note 9: Risk Management (Continued)
The overall coverage limit for each member, including all layers of coverage,
is $50 million per occurrence. Subsidence losses also have a $50 million
per occurrence limit. The coverage structure is composed of a combination of pooled
self-insurance, reinsurance, and excess insurance. Additional information about the
various layers of coverage is available on the following website:
https: //ci p ia. o rg/coverage/risk-sharing-pool s/.
Workers' Comoensation
In the workers' compensation program claims are pooled separately between public
safety (police and fire) and general government exposures. (1) The payroll of each
member is evaluated relative to the payroll of other members. A variable credibility
factor is determined for each member, which establishes the weight applied to payroll
and the weight applied to losses within the formula. (2) The first layer of losses includes
incurred costs up to $75,000 for each occurrence and is evaluated as a percentage of
the pool's total incurred costs within the first layer. (3) The second layer of losses
includes incurred costs from $75,000 to $200,000 foreach occurrence and is evaluated
as a percentage of the pool's total incurred costs within the second layer.
(4) Incurred costs from $200,000 to statutory limits are distributed based on the
outcome of cost allocation within the first and second loss layers.
For 2021-22 the Authority's pooled retention is $1 million per occurrence, with
reinsurance to statutory limits under California Workers' Compensation Law.
Employer's Liability losses are pooled among members to $1 million. Coverage from
$1 million to $5 million is purchased as part of a reinsurance policy, and Employer's
Liability losses from $5 million to $10 million are pooled among members.
c. Purchased Insurance
Pollution Legal Liability Insurance
The City of Rosemead participates in the pollution legal liability insurance program
which is available through the Authority. The policy covers sudden and gradual
pollution of scheduled property, streets, and storm drains owned by the
City of Rosemead. Coverage is on a claims -made basis. There is a $250,000
deductible. The Authority has an aggregate limit of $20 million.
Property Insurance
The City of Rosemead participates in the all-risk property protection program of the
Authority. This insurance protection is underwritten by several insurance companies.
City of Rosemead property is currently insured according to a schedule of covered
property submitted by the City of Rosemead to the Authority. City of Rosemead
property currently has all-risk property insurance protection in the amount of
$64,561,131. There is a $10,000 deductible per occurrence except for non -emergency
vehicle insurance which has a $2,500 deductible.
Crime Insurance
The City of Rosemead purchases crime insurance coverage in the amount of
$1,000,000 with a $2,500 deductible. The fidelity coverage is provided through
the Authority.
47
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2022
Note 9: Risk Management (Continued)
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 2021-22.
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, a single -employer defined benefit pension plan.
These two plans are presented in aggregate on the government -wide financial statement
of net position. The schedule below summarizes the components of the information
presented on the government -wide statement broken out by each plan and in aggregate:
b. Defined Benefit Pension Plan - CaIPERS
Plan Description
All qualified permanent and probationary employees are eligible to participate in the
Public Agency Cost -Sharing Multiple -Employer Defined Benefit Pension Plan (Plan)
administered by the California Public Employees' Retirement System (CalPERS.) The Plan
consists of individual rate plans (benefit tiers) within a safety risk pool (police and fire) and
a miscellaneous risk pool (all other). Plan assets may be used to pay benefits for any
employer rate plat 8n of the safety and miscellaneous pools. Accordingly, rate plans within
the safety or miscellaneous pools are not separate plans under GASB Statement No. 68.
Individual employers may sponsor more than one rate plan in the miscellaneous or safety
risk pools. The City sponsors three miscellaneous rate plans. Benefit provisions under the
Plan are established by State statute and City resolution. CalPERS issues publicly
available reports that include a full description of the pension plan regarding benefit
provisions, assumptions and membership information that can be found on the CaIPERS'
website, at www.calpers.ca.gov.
PARS
CalPERS
Retirement
Miscellaneous
Enhancement
Plan
Plan
Total
Net Pension Liability
$ 4,509,289
$ 4,509,289
Net Pension Asset
-
$ 358,035
358,035
Deferred Outflows of Resources
1,750,926
407,049
2,157,975
Deferred Inflows of Resources
4,384,954
32,312
4,417,266
Pension Expense
800,923
20,057
820,980
b. Defined Benefit Pension Plan - CaIPERS
Plan Description
All qualified permanent and probationary employees are eligible to participate in the
Public Agency Cost -Sharing Multiple -Employer Defined Benefit Pension Plan (Plan)
administered by the California Public Employees' Retirement System (CalPERS.) The Plan
consists of individual rate plans (benefit tiers) within a safety risk pool (police and fire) and
a miscellaneous risk pool (all other). Plan assets may be used to pay benefits for any
employer rate plat 8n of the safety and miscellaneous pools. Accordingly, rate plans within
the safety or miscellaneous pools are not separate plans under GASB Statement No. 68.
Individual employers may sponsor more than one rate plan in the miscellaneous or safety
risk pools. The City sponsors three miscellaneous rate plans. Benefit provisions under the
Plan are established by State statute and City resolution. CalPERS issues publicly
available reports that include a full description of the pension plan regarding benefit
provisions, assumptions and membership information that can be found on the CaIPERS'
website, at www.calpers.ca.gov.
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2022
Note 10: Defined Benefit Pension Plans (Continued)
Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living
adjustments and death benefits to plan members, who must be public employees and
beneficiaries. Benefits are based on years of credited service, equal to one year of full-time
employment. Members with five years of total service are eligible to retire at age 50 with
statutorily reduced benefits. All members are eligible for non -duty disability benefits after
5 years of service. The death benefit is one of the following: the Basic Death Benefit,
the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of
living adjustments for each plan are applied as specified by the Public Employees'
Retirement Law.
The Plan's provisions and benefits in effect at June 30, 2022, are summarized as follows
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 CalPERS' annual actuarial valuation
process. For public agency cost-sharing plans covered by either the Miscellaneous or
Safety risk pools, the Plan's actuarially determined rate is based on the estimated amount
necessary to pay the Plan's allocated share of the risk pool's costs of benefits earned by
employees during the year, and any unfunded accrued liability. The employer is required
to contribute the difference between the actuarially determined rate and the contribution
rate of employees.
For the year ended June 30, 2022 the contributions recognized as a reduction to the net
pension liability was $1,013,310.
Pension Liability Pension Expense and Deferred Outflows/Inflows of Resources
At June 30, 2022, the City of Rosemead reported a net pension liability for its proportionate
share of the net pension liability in the amount of $4,509,289.
Et"I
Ter 1 *
Tier 2 *
PEPRA
Hire date
Prior to
From July 1, 2010 to
January 1, 2013
July 1, 2010
December 31, 2012
and after
Benefit formula
2.7% @ 55
2% @ 55
2% @ 62
Benefit vesting schedule
5 years service
5 years service
5 years service
Benefit payments
monthly for life
monthly for life
monthly for life
Retirement age
50 to 55&up
50 to 63&up
52 to 67&up
Monthly benefits, as a % of
2.0% to 2.7%
1.426 to 2.418
1.0% to 2.5%
eligible compensation
Required employee
8.00%
7.00%
6.75%
contribution rates
Required employer
14.02%
10.88%
7.59%
contribution rates
Unfunded Accrued Liability
$ 644,217
$ 4,380
$ 2,855
Contribution
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 CalPERS' annual actuarial valuation
process. For public agency cost-sharing plans covered by either the Miscellaneous or
Safety risk pools, the Plan's actuarially determined rate is based on the estimated amount
necessary to pay the Plan's allocated share of the risk pool's costs of benefits earned by
employees during the year, and any unfunded accrued liability. The employer is required
to contribute the difference between the actuarially determined rate and the contribution
rate of employees.
For the year ended June 30, 2022 the contributions recognized as a reduction to the net
pension liability was $1,013,310.
Pension Liability Pension Expense and Deferred Outflows/Inflows of Resources
At June 30, 2022, the City of Rosemead reported a net pension liability for its proportionate
share of the net pension liability in the amount of $4,509,289.
Et"I
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30. 2022
Note 10: Defined Benefit Pension Plans (Continued)
The City's pension liability is measured as the proportionate share of the net pension
liability. The net pensions liability is measured as of June 30, 2021 and the total pension
liability for each Plan used to calculate the net pension liability was determined by an
actuarial valuation as of June 30, 2020 rolled forward to June 30, 2021 using standard
procedures. The City's proportion of the net pension liability was based on a projection of
the City's long-term share of contributions to the pension plans relative to the projected
contributions of all participating employers, actuarially determined. The City's proportionate
share of the net pension liability for each Plan as of June 30, 2020 and 2021 was as follows:
Miscellaneous
Proportion - June 30, 2020 0.08279%
Proportion - June 30, 2021 0.08338%
Change - Increase(Decrease) 0.00059%
For the year ended June 30, 2022, the City of Rosemead recognized pension expense of
$800,923. At June 30, 2022, the City reported deferred outflows of resources and deferred
inflows of resources related to pensions from the following sources:
Pension contributions subsequent to measurement date
Changes in assumptions
Difference between expected and actual experiences
Net differences between projected and actual earnings
on plan investments
Change in employers proportion and differences between
the employer's contributions and the employer's
proportionate share of contributions
Adjustment due to differences in proportions
Total
Deferred Outflows
Deferred Inflows
of Resources
of Resources
$ 1,036,079
$ -
505,668
(920,046)
-
(3,936,371)
202,055
-
(203,527)
7,124
(245,056)
$ 1,750,926 $ (4,384,954)
The $1,036,079 reported as deferred outflows of resources related to contributions
subsequent to the measurement date will be recognized as a reduction of the net pension
liability in the year ended June 30, 2023. Other amounts reported as deferred outflows of
resources and deferred inflows of resources related to pensions will be recognized as
pension expense as follows:
Measurement
Period Ended
June 30.
Deferred Outflow /
(Inflows) of Resources
2022
(821,855)
2023
(840,397)
2024
(920,046)
2025
(1,087,809)
2026
Thereafter
Total
$ (3,670,107)
Actuarial Assumptions and Methods
For the measurement period ended June 30, 2021 (the measurement date), the total
pension liability was determined by rolling forward the June 30, 2020, total pension liability.
50
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2022
Note 10: Defined Benefit Pension Plans (Continued)
The June 30, 2020 and the June 30, 2021, total pension liabilities were based on the
following actuarial methods and assumptions:
Actuarial Cost Method Entry Age Normal Cost Method
Actuarial Assumptions
Discount Rate 7.15%
Inflation 2.50%
Salary Increases Varies by Entry Age and Service
Mortality Rate Table (1) Derived using CaIPERS' Membership Data for all
Funds
Post Retirement Benefit Contract COLA up to 2.50% until Purchasing
Increase Power Protection Allowance Floor on Purchasing
Power applies.
(1) The mortality table used was developed based on CAPERS' specific data. The table
includes 15 years of mortality improvements using Society of Actuaries Scale 90% of scale
MP 2016. For more details on this table, please refer to the December 2017 experience
study report (based on the CAPERS demographic data from 1997 to 2015) that can be
found on the CaIPERS website.
Discount Rate
The discount rate used to measure the total pension liability was 7.15 percent. The
projection of cash flows used to determine the discount rate assumed that contributions
from plan members will be made at 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 project 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.
The long-term expected rate of return on pension plan investments was determined using
a building-block method in which expected future real rates of return (expected returns, net
of pension plan investment expense and inflation) are developed for each major asset
class.
In determining the long-term expected rate of return, CaIPERS took into account both
short-term and long-term market return expectations as well as the expected pension fund
cash flows. Using historical returns of all the funds' asset classes, expected compound
(geometric) returns were calculated over the short-term (first 10 years) and the long-term
(11+ years) using a building-block approach. Using the expected nominal returns for both
51
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2022
Note 10: Defined Benefit Pension Plans (Continued)
short-term and long-term, the present value of benefits was calculated for each fund. The
expected rate of return was set by calculating the rounded single equivalent expected
return that arrived at the same present value of benefits for cash flows as the one calculated
using both short-term and long-term returns. The expected rate of return was then set equal
to the single equivalent rate calculated above and adjusted to account for assumed
administrative expenses.
The expected real rates of return by asset class are as follows:
(1) In the System's ACFR, Fixed Income is included in Global Debt Securities; Liquidity is
included in Short -Term Investments, Inflation Assets are included in both Global Equity
Securities and Global Debt Securities.
(2) An expected inflation of 2.0% used for this period.
(3) An expected inflation of 2.92% used for this period.
Sensitivity of Net Pension Liability to Changes in Discount Rate
The following presents the City's proportionate share of the net pension liability/ (asset) of
the Plan, calculated using the discount rate for each Plan, as well as what the City's
proportionate share of the net pension liability would be if it were calculated using a
discount rate that is 1% point lower (6.15 percent) or 1% point higher (8.15 percent) than
the current rate:
Plan's Net Pension Discount Rate - 1 % Current Discount Rate Discount Rate +1 %
Liability/(Assets) (6.15%) (7.15%) (8.15%)
Miscellaneous $ 9,442,457 $ 4,509,289 $ 431,110
Pension Plan Fiduciary Net Position
Detailed information about the pension
separately issued CaIPERS financial
information.
c. PARS Retirement Enhancement Plan
Plan Description
plan's fiduciary net position is available in the
reports. See CaIPERS' website for additional
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, 2021, Annual Actuarial Valuation Report. Details of
52
Assumed Asset
Real Return
Real Return
Asset Class (1)
Allocation
Years 1 - 10 (2)
Years 11+ (3)
Global Equity
50.0%
4.80%
5.98%
Fixed Income
28.0
1.00
2.62
Inflation Assets
0.0
0.77
1.81
Private Equity
8.0
6.30
7.23
Real Estate
13.0
3.75
4.93
Liquidity
1.0
0.00
(0.92)
(1) In the System's ACFR, Fixed Income is included in Global Debt Securities; Liquidity is
included in Short -Term Investments, Inflation Assets are included in both Global Equity
Securities and Global Debt Securities.
(2) An expected inflation of 2.0% used for this period.
(3) An expected inflation of 2.92% used for this period.
Sensitivity of Net Pension Liability to Changes in Discount Rate
The following presents the City's proportionate share of the net pension liability/ (asset) of
the Plan, calculated using the discount rate for each Plan, as well as what the City's
proportionate share of the net pension liability would be if it were calculated using a
discount rate that is 1% point lower (6.15 percent) or 1% point higher (8.15 percent) than
the current rate:
Plan's Net Pension Discount Rate - 1 % Current Discount Rate Discount Rate +1 %
Liability/(Assets) (6.15%) (7.15%) (8.15%)
Miscellaneous $ 9,442,457 $ 4,509,289 $ 431,110
Pension Plan Fiduciary Net Position
Detailed information about the pension
separately issued CaIPERS financial
information.
c. PARS Retirement Enhancement Plan
Plan Description
plan's fiduciary net position is available in the
reports. See CaIPERS' website for additional
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, 2021, Annual Actuarial Valuation Report. Details of
52
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2022
Note 10: Defined Benefit Pension Plans (Continued)
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.
Benefits Provided
The Retirement Enhancement Plan provides a benefit equal to the PARS "3.0% at 55" plan
factor (formula is a static 3.0% at age 55 and older), less the CalPERS "2.7% at 55" plan
factors (a static 2.7% at age 55 and older) for all years of full-time continuous City service.
The benefit from this plan when added to the CalPERS benefit may not exceed 90% of
final compensation.
The Plan II includes a pre -retirement death benefit for those eligible employees who die
while actively employed with the City and meet the age and service eligibility requirements
for a supplemental retirement benefit. The benefit will be paid to a surviving spouse
or domestic partner as a life annuity equal to the employee's supplemental retirement
benefit actuarially reduced as if the employee had elected a 100% joint -and -survivor
annuity.
The Plan is closed to all employees in the classes hired on or after July 1, 2010.
The Plan II's provisions and benefits in effect at June 30, 2022, (measurement date) are
summarized as follows:
Hire Date
Benefit Formula
Benefit vesting schedule
Benefit payments
Retirement age
Monthly benefits, as a % of eligible compensation
Required employee contribution rates
Required employer contribution rates
Employees Covered
Supplemental
On or before June 30, 2010
3% @ 55 less Cal PERS 2.7% @ 55
from date of hire
life only annuity
55
0.576%
none
1.390%
At June 30, 2022, the following employees were covered by the benefit terms:
Description Number of Members
Inactive employees or beneficiaries
currently receiving benefits
Active employees
Total
53
17
30
47
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2022
Note 10: Defined Benefit Pension Plans (Continued)
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, 2022
(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, 2022 are $68,424.
Net Pension Liability/(Asset)
The City's net pension liability for the Retirement Enhancement Plan is measured as the
total pension liability, less the pension plan's fiduciary net position. The net pension liability
of the Plan II is measured as of June 30, 2022, using an annual actuarial valuation as of
June 30, 2021.
Total pension liability $ 2,759,003
Plan fiduciary net position (3,117,038)
Net pension (asset) $ (358,035)
Plan fiduciary net position as a % of total pension liability 113.0%
Actuarial Assumptions and Methods
The following actuarial methods and assumptions were used in the June 30, 2021, funding
valuation:
Actuarial Cost Method
Amortization Method
Level percent or level dollar
Closed, open, or layered periods
Amortization period at 06/30/2021
Amortization growth rate
Asset Valuation Method
Smoothing period
Recognition method
Corridor
Inflation
Salary Increases
Imestrnent Rate of Return
Cost of Living Adjustments
Mortality
54
Entry Age Normal
Level dollar
Closed
2 years
0.00%
None
None
None
2.50%
Varies by entry age and service
6.50%
2.00%
Consistent vdth Non -Industrial rates used to
value the Miscellaneous Public Agency CaIPERS
Pension Plans.
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30. 2022
Note 10: Defined Benefit Pension Plans (Continued)
Discount Rate
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 of Rosemead:
• The City of Rosemead has at least a 5 -year history of generally paying at least 100%
of the Actuarially Determined Contribution (previously termed the Annual Required
Contribution).
• The Actuarially Determined Contribution is based on a closed amortization period,
which means that payment of the Actuarially Determined Contribution each year will
bring the plan to a 100% funded position by the end of the amortization period.
• GASB 68 specifies that the projections regarding future solvency assume that plan
assets earn the assumed rate of return and there are no future changes in the plan
provisions or actuarial methods and assumptions, which means that the projections
would not reflect any adverse future experience which might impact the plan's funded
position.
Based on these circumstances, the City believes that the detailed depletion date
projections outlined in GASB 68 will show that the fiduciary net position is always projected
to be sufficient to cover benefit payments and administrative expenses.
June 30, 2021 June 30, 2022
Discount rate 6.50% 6.50%
Long-term expected rate of return, 6.50% 6.50%
net of investment expense
Municipal bond rate N/A N/A
The Plan ll'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.
55
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2022
Note 10: Defined Benefit Pension Plans (Continued)
The assumption for the long-term expected rate of return was selected by the
City of Rosemead. Below is a projection of the 30 year average return derived by adding
expected inflation to expected long-term real returns and reflecting and expected volatility
and correlation on the Plan's current asset allocation. The capital market assumptions are
per Milliman's investment consulting practice as of June 30, 2022.
Long -Term Long -Term
Expected Expected
Arithmetic Geometric
Current Real Rate Real Rate
Asset Class Index Allocation of Return of Return
US Cash
BAML 3 -Mon Tbill
11.04%
0.21%
0.20%
US Core Fixed Income
Bloomberg Barclays Aggregate
43.93%
1.95%
1.84%
US Equity Market
Russell 3000
35.88%
5.70%
4.10%
Foreign Developed Equity
MSCI EAFE NR
5.14%
6.99%
5.25%
Emerging Markets Equity
MSCI EM NR
2.33%
9.44%
5.97%
US REITs
FTSE NAREIT Equity REIT
1.68%
6.27%
4.11%
Changes in Net Pension Liabilitv
Balance at June 30, 2021
Changes for the year:
Seance cost
Interest on total pension liability
Effect of economic/demographic gains or losses
Effect of assumptions changes or inputs
Benefit payments
Employer contributions
Member contributions
Net irrestment income
Administrative expenses
Balance at June 30, 2022
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
(a) (b) (a) - (b)
$ 2,795,850 $ 3,746,876 $ (951,026)
24,732
175,746
24,732
175,746
(237,325) (237,325) -
68,424 (68,424)
(459,657) 459,657
(1,280) (1,280)
$ 2,759,003 $ 3,117,038
Sensitivity of Net Pension Liability/(Asset) to Changes in the Discount Rate
The following presents the net pension liability, 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:
Decrease Discount Rate Increase
(5.50%) -6.50% (7.50%)
$ (59,711) $ (358,035) $ (612,419)
56
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2022
Note 11
Defined Benefit Pension Plans (Continued)
Pension Plan Fiduciary Net Position
The Plan II fiduciary net position at June 30, 2022, was as follows:
Assets:
Cash and cash equivalents
$ 344,275
Investments:
Fixed income
1,369,419
Stocks
1,350,852
Real estate
52,492
Total Investments
2,772,763
Total Assets
3,117,038
Net Position Restricted for Pensions
$ 3,117,038
Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions
For the year ended June 30, 2022, the City recognized pension expense of $20,057. At
June 30, 2022, the City reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
Difference between expected and actual experience
Change of assumptions
Net difference between projected and actual earnings
on pension plan inestments
Total
Deferred Outflows Deferred Inflows
of Resources of Resources
$ 68,608 $ (32,312)
6,031
332,410
$ 407,049 $ (32,312)
Amounts currently reported as deferred outflows of resources and deferred inflows of
resources related to pensions will be recognized in pension expense as follows:
Measurement
Period Ended
June 30.
2023
2024
2025
2026
2027
Thereafter
Total
Defined Contribution Pension Plan
PARS Alternate Retirement System (ARS) Plan
Deferred Outflow I
Infims) of Resources
73,037
93,311
68,837
139,552
$ 374,737
The City currently offers an alternative plan for employees classified as part-time, seasonal or
temporary (PST). The plan is administered by the Public Agency Retirement Services (PARS)
and is a qualified deferred compensation plan created in accordance with Internal Revenue
Code Section 457(b). All amounts of compensation deferred under the plan, all property, or
rights are solely the property and rights of the employee and beneficiaries of the plan. Deferred
compensation funds are not subject to claims of the City's general creditor; consequently, the
assets and related liabilities of the plan are not included within the City's financial statements.
The City contributes 3.75% percent of the employee's compensation. In addition, each
57
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2022
Note 11: Defined Contribution Pension Plan (Continued)
participant is required to contribute 3.75% of their salary. During the current fiscal year, the City
contributed $68,424 to the plan.
Note 12: Post -Employment Benefit Plan
Plan Description
The City administers an agent multiple employer defined benefit plan which provides medical
benefits to eligible retirees and their spouses in accordance with various labor agreements.
Emplovees Covered
An employee is eligible forthis employer contribution provided they are vested in their CaIPERS
pension benefit and commence payment of their pension benefit within 120 days of retirement
with the City. Vesting requires at least 5 years of 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 CAPERS.
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 2021 and 2022 were $139 and $143, respectively.
Active 57
Inactive employees or beneficiaries currently receiving benefits 36
Total 93
Contributions
The contribution requirements of plan members and the City are established and may
be amended by City Council. On May 26, 2009, the City Council passed a resolution to
participate in the PARS Public Agencies Post -Retirement Health Care Plan Trust,
an irrevocable trust established to fund post -employment benefits for its employees. The
purpose of the trust is to accumulate, hold, and distribute medical benefit plan assets for the
exclusive benefit of retirees and beneficiaries within the IRS Code Section 115 and
in conformance with the accounting standard. The trust is administered by Public Agency
Retirement Services (PARS). PARS issues a separate Comprehensive Annual Financial
Report. Copies of the PARS annual financial report may be obtained from PARS,
4350 Von Karman Avenue, Suite 100, Newport Beach, California 92660.
17.1
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2022
Note 12: Post -Employment Benefit Plan (Continued)
For the measurement date ended June 30, 2021, the City recognized a total of $56,000 in
contributions, including an implied subsidy of 44,328, as a reduction to the net OPEB liability.
Net OPER Asset
The City's net OPEB asset was measured as of June 30, 2021, and the total OPEB liability
used to calculate the net OPEB asset was determined by an actuarial valuation
dated June 30, 2021 was used to determine the total OPEB liability, based on the following
actuarial methods and assumptions:
Valuation Date
June 30, 2021
Actuarial Cost Method
Entry Age Normal, Level Percentage of Payroll
Amortization Method
Level percent of pay
Amortization Period
18 -year fixed period for 2020/21
Asset Valuation Method
Imestment gains and losses spread ower 5 -year
rolling period
Discount Rate
5.50%
General Inflation
2.50%
Medical Trend
Non -Medicare - 6.75% for 2022, decreasing to an
ultimate rate of 3.75% in 2076
Medicare - 6.3% for 2021, decreasing to an
ultimate rate of 4.0% in 2076
Mortality
CaIPERS 1997-2015 experience study
Mortality Improvement
Mortality Improvement Scale 2020 for post-
retirement mortality
Salary Increases
Aggregate - 2.75% annually
Ment - CalPERS 1997-2015 experience study.
PEMHCA Minimum Increases
3.75% annually
Cap Increases
No future increases
Healthcare Participation for
Actives & Surviving Spouses Hired <=7/1/07:
Future Retirees
Covered:
<12 yrs of service - 70%
12-19 yrs of service - 80%
>= 20 yrs of sauce - 100%
Waived:
<12 yrs of service - 50%
12-19 yrs of service - 65%
>= 20 yrs of service - 80%
Actives & Suuving Spouses Hired > 7/1/07:
Covered - 70%, Waived - 50%
Retirees & Surviving Spouses: Covered - 100%
Waived < 65 - 20% at 65, Wavied >= 65 - 0%
Change of assumptions
Discount rate was updated based on newer market
assumptions. Decreased medical trend ratefor
Kaiser Senion Advantage. Mortality improvement
scale was updated to Scale MP -2020. Decreased
general inflation, assumed payroll increases and
medical inflation. Updated assumption for
Medicare eligible implied subsidy. New claims
cost aging factors
Changes of benefit terms
None
59
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2022
Note 12: Post -Employment Benefit Plan (Continued)
Expected Long -Term Rate of Return
Target Allocation Expected Real
Asset Class Component PARS -Moderate Rate of Return
Global Equity
48.00%
4.56%
Fixed Income
45.00%
0.78%
REITs
2.00%
4.06%
Cash
5.00%
-0.50%
(1) Assumed Long -Term Rate of Inflation 2.50%
(2) Expected Long -Term Net Rate of Return,
rounded to the nearest quarter percent 5.50%
The long-term expected real rates of return are presented
as geometric means.
Discount Rate
The discount rate used to measure the total OPEB liability was 6.00 percent. The projection of
cash flows used to determine the discount rate assumed that City contributions will be made
at rates equal to the actuarially determined contribution rates. Based on those assumptions,
the OPEB plan's fiduciary net position was projected to be available to make all projected
OPEB payments for current active and inactive employees and beneficiaries. Therefore, the
long-term expected rate of return on OPEB plan investments was applied to all periods of
projected benefit payments to determine the total OPEB liability.
Changes in the OPEB Liability/(Asset)
The changes in the net OPEB liability for the Plan are as follows:
Balance at June 30, 2021 (measurement date 6130/2020)
Changes recognized for the measurement period:
Semite cost
Interest
Actual es. expected experience
Assumption changes
Contributions - employer
Net investment income
Benefit payments
Administrative expenses
Netchanges
Balance at June 30, 2022 (measurement date 6/30/2021)
Total OPEB
Plan Fiduciary
Net OPEB
Liability
Net Position
Liability/(Asset)
(a)
(b)
(c) = (a) - (b)
$ 4,305,390
$ 3,810,549
$ 494,841
116,753
-
116,753
258,626
-
258,626
(106,136)
-
(106,136)
200,671
-
200,671
-
179,672
(179,672)
-
848,323
(848,323)
(223,397)
(223,397)
-
(11,139)
11,139
246,517
793,459
(546,942)
$ 4,551,907 $ 4,604,008 $ (52,101)
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2022
Note 12: Post -Employment Benefit Plan (Continued)
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, 2021:
Current
1% Decrease Discount Rate 1% Increase
(4.50°/x) (5.50°/x) (6.50%)
Net OPEB Liability/(Asset) $ 532,758 $ (52,101) $ (539,916)
Sensitivitv 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, 2021:
Current Healthcare Cost
1% Decrease Trent Rates 1% Increase
Net OPEB Liability/(Asset; $ (363,075) $ (52,101) $ 273,843
OPEB Plan Fiduciary Net Position
PARS issues a publicly available financial report that includes financial statements and
required supplementary information. That report may be obtained from the Public Agency
Retirement Services, 4350 Von Karman Ave, Newport Beach, California 92660.
OPEB Exoense and Deferred Outflows/Inflows of Resources Related to OPEB
For the fiscal year ended June 30, 2022, the City recognized OPEB income of $33,402. As of
fiscal year ended June 30, 2022, the City reported deferred outflows of resources related to
OPEB from the following sources:
OPEB contributions subsequent to measurement date
Differences between expected and actual experience
Changes of assumptions
Net difference between projected and actual earnings
on OPEB investments
Total
61
Deferred Outflows of
Resources
100,859
176,199
Deferred Inflows of
Resources
399,231
27,443
- 451,500
$ 277,058 $ 878,174
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30. 2022
Note 12: Post -Employment Benefit Plan (Continued)
The $100,859 reported as deferred outflows of resources related to contributions subsequent
to the measurement date will be recognized as a reduction of the net OPEB liability in the year
ended June 30, 2022. The amounts reported as deferred inflows of resources related to OPEB
will be recognized as expense as follows:
Note 13: Commitments and Contingencies
The City is a member of the Los Angeles County Liability Trust Fund (the Trust Fund), which
was set up to pay for litigation involving the Los Angeles County Sheriffs' Department within
any of the 40 cities that are served by the Los Angeles County Sheriffs' Department. The
Trust Fund was and is being funded by the 40 cities based upon each city's allocated
surcharge, calculated as a percentage of each city's contribution to the total contracted amount
with the County paid to Los Angeles County for the use of its deputies. Based upon the
agreement signed by all of the 40 cities at the time the Trust Fund originated, the cities will be
jointly liable for any and all claims filed against the Los Angeles County Sheriffs' Department,
regardless of the location within the 40 cities.
The City is a defendant in certain legal actions arising in the normal course of operations. In
the opinion of management, any liability resulting from such actions will not have a material
adverse effect on the City's financial position.
Note 14: Successor Agency
On December 29, 2011, the California Supreme Court upheld AB IX 26 that provides for the
dissolution of all redevelopment agencies in the State of California. This action impacted the
reporting entity of the City that previously had reported the former Agency within the reporting
entity of the City as a blended component unit. In June 2012, the Legislature adopted AR 1484,
which amended portions of AB IX 26 and added certain new provisions. AB IX 26 and AB 1484
are collectively referred to herein as the "Bill."
The Bill provides that upon dissolution of a redevelopment agency, either city or another unit
local government will agree to serve as the "successor agency" to hold the assets until
they are distributed to other units of state and local government. The successor agency
is defined as being a separate legal entity from the City. On January 10, 2012, the City Council
elected to become the Successor Agency forthe 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.
62
Deferred Outflow/
Year ended June 30:
(Inflows) of Resources
2023
(163,343)
2024
(161,425)
2025
(156,864)
2026
(175,436)
2027
(51,392)
Thereafter
6,485
Total
$ (701,975)
Note 13: Commitments and Contingencies
The City is a member of the Los Angeles County Liability Trust Fund (the Trust Fund), which
was set up to pay for litigation involving the Los Angeles County Sheriffs' Department within
any of the 40 cities that are served by the Los Angeles County Sheriffs' Department. The
Trust Fund was and is being funded by the 40 cities based upon each city's allocated
surcharge, calculated as a percentage of each city's contribution to the total contracted amount
with the County paid to Los Angeles County for the use of its deputies. Based upon the
agreement signed by all of the 40 cities at the time the Trust Fund originated, the cities will be
jointly liable for any and all claims filed against the Los Angeles County Sheriffs' Department,
regardless of the location within the 40 cities.
The City is a defendant in certain legal actions arising in the normal course of operations. In
the opinion of management, any liability resulting from such actions will not have a material
adverse effect on the City's financial position.
Note 14: Successor Agency
On December 29, 2011, the California Supreme Court upheld AB IX 26 that provides for the
dissolution of all redevelopment agencies in the State of California. This action impacted the
reporting entity of the City that previously had reported the former Agency within the reporting
entity of the City as a blended component unit. In June 2012, the Legislature adopted AR 1484,
which amended portions of AB IX 26 and added certain new provisions. AB IX 26 and AB 1484
are collectively referred to herein as the "Bill."
The Bill provides that upon dissolution of a redevelopment agency, either city or another unit
local government will agree to serve as the "successor agency" to hold the assets until
they are distributed to other units of state and local government. The successor agency
is defined as being a separate legal entity from the City. On January 10, 2012, the City Council
elected to become the Successor Agency forthe 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.
62
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2022
Note 14: Successor Agency (Continued)
Subject to the approval of the oversight board and the State of California Department
of Finance (DOF), remaining assets can only be used to pay enforceable obligations in
existence at the date of dissolution (including the completion of any unfinished projects that
were subject to legally enforceable contractual commitments).
Successor agencies are allocated property tax revenue in the amount that is necessary to pay
the estimated installment payments on enforceable obligations of the former redevelopment
agencies until all enforceable obligations of the prior redevelopment agencies have been paid
in full and all assets have been liquidated.
a. Cash and Investments
Cash and investments of the Successor Agency consist of demand deposit held with
financial institutions and restricted cash held with fiscal agents for the purpose of debt
service payments and bond covenants. The cash and investments reported in the
accompanying financial statements consisted of the following:
Cash and Investments $ 5,776,706
Restricted:
Cash with Fiscal Agents 1,123,012
Total Cash and Investments $ 6,899,718
b. Long -Term Debt
The debt of the Successor Agency as of June 30, 2022 is as follows:
1,281,531
- 106,794
1,174,737
Balance
Discount on Issuance
Balance
Due Within
(18,475)
July 1, 2021 Additions
Deletions
June 30, 2022
One Year
Bonds Payable:
92,014
Total Long-term Debt
$ 24,043,276 $
- $ 2,497,014
Tax Allocation Bonds
$ 2,622,014
Series 2010A
$ 3,285,000 $ -
$ 1,050,000
$ 2,235,000
$ 1,100,000
Tax Allocation Bonds
Series 2016
19, 510, 000
1,355,000
18,155, 000
1,430, 000
Subtotal Bonds
22,795,000
2,405,000
20,390,000
2,530,000
Deferred amounts:
Unamonized bond premium
1,281,531
- 106,794
1,174,737
106,794
Discount on Issuance
(33,255)
(14,780)
(18,475)
(14,780)
Total Bonds
1,248,276
92,014
1,156,262
92,014
Total Long-term Debt
$ 24,043,276 $
- $ 2,497,014
$ 21,546,262
$ 2,622,014
63
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2022
Note 14: Successor Agency (Continued)
Future debt service requirements are as follows:
Year Ending
June 30
2023
2024
2025
2026
2027
2028-2032
2033-2034
Total
Principal
$ 2,530,000
2,320,000
1,245,000
1,305,000
1,370,000
7,930,000
3,690,000
$ 20,390,000
Tax Allocation Bonds, Series 2010A
Interest
$ 886,750
765,500
676,375
612,625
545,750
1,664,900
149,000
$ 5,300,900
In July 2010, the Commission issued $11,230,000 in Merged Project Area Tax Allocation
Bonds. The bonds mature in amounts ranging from $200,000 to $1,135,000 with interest
rates ranging from 3.00% to 5.00% through December 1, 2023. The bonds were issued to
provide funds to finance the costs of certain redevelopment projects within the Merged
Project Area including infrastructure improvements and the acquisition of land. Principal is
payable annually on December 1, beginning on December 1, 2011. Interest is payable
semi-annually on June 1 and December 1. Per the bond indenture, a reserve is required
to be maintained. In the event of default, all money in the funds and accounts provided for
in the bond indenture and all tax revenues thereafter received by the Successor Agency
are to be transmitted to the trustee and applied in the following order: first to pay the costs
and expenses of the trustee for legal counsel, and second, to pay the unpaid principal and
interest accrued on the bonds. At June 30, 2022, the balance held in the reserve account
was $1,123,000. As of June 30, 2022, the outstanding balance was $2,235,000.
2016 Subordinate Tax Allocation Refunding Bonds
In October 2016, the Successor Agency to the Rosemead Redevelopment Agency
(Successor Agency) issued the 2016 Subordinate Tax Allocation Refunding Bonds in the
amount of $24,230,000 for the purpose of refunding, on a current basis, all of the
outstanding Rosemead Community Development Commission Redevelopment Project
Area No. 1 Tax Allocation Bonds, Series 2006A, initially issued in the principal amount of
$14,005,000, and the Rosemead Community Development Commission Redevelopment
Project Area No. 1 Tax Allocation Refunding Bonds, Series 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, 2022, the outstanding balance was $18,155,000.
64
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2022
Note 14: Successor Agency (Continued)
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, 2022 is $25,690,900 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
$4,072,385 and the debt service obligation on the bonds was $3,415,125.
65
Required Supplementary
Information
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2022
Budgetary Comparison Information
1. Annual budgets are legally adopted on a basis consistent with accounting principles generally
accepted in the United States of America for all governmental funds. All annual appropriations
lapse at fiscal year-end.
2. On or before the last day in March of each year, all business units and component units of the
government submit requests for appropriations to the City Manager so that a budget may be
prepared. Before the first Thursday of June, the proposed budget is presented to the City Council
for review. The Council holds public meetings and a final budget must be prepared and adopted
no later than June 30.
3. The appropriated budget is prepared by fund and department. The City's Department Directors,
with approval of the Finance Director and City Manager, may make transfers of appropriations
within a department and between departments within a fund. Transfers of appropriations between
funds must be approved by the City Council. The legal level of budgetary control (i.e., the level at
which expenditures may not legally exceed appropriations) is the fund level. The Council made
several supplemental budgetary appropriations throughout the year. The supplemental budgetary
appropriations made in the various governmental funds are detailed in the required supplementary
information. Budgets were legally adopted for all governmental funds.
4. Encumbrance accounting is employed in governmental funds. Encumbrances
(e.g., purchase orders, and contracts) outstanding at year end do not constitute expenditures or
liabilities because the commitments will be appropriated and honored during the subsequent year.
M
CITY OF ROSEMEAD, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
GENERALFUND
FOR THE YEAR ENDED JUNE 30, 2022
67
Variance with
Final Budget
BudgetAmounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 25,587,612
$ 25,587,612
$ 25,587,612
$ -
Available for Appropriations (Inflows):
Taxes
19,527,100
19,527,100
21,348,831
1,821,731
Licenses and permits
2,451,200
2,451,200
3,332,016
880,816
Intergovernmental
155,000
155,000
682,567
527,567
Charges for services
918,200
918,200
743,971
(174,229)
Use of money and property
385,700
385,700
360,557
(25,143)
Fines and forfeitures
624,300
624,300
577,616
(46,684)
Miscellaneous
26,000
26,000
77,838
51,838
Transfers in
1,500,000
1,500,000
-
(1,500,000)
Amounts Available for Appropriations
51,175,112
51,175,112
52,889,019
1,713,907
Charges to Appropriation (Outflows):
General government
5,106,600
5,085,000
5,156,458
(71,458)
Public safety
10,296,190
11,097,100
10,927,864
169,236
Community development
1,728,500
1,728,500
1,752,791
(24,291)
Parks and recreation
3,511,400
3,504,000
2,385,453
1,118,547
Public works
3,990,200
3,984,050
3,854,124
129,926
Capital outlay
891,310
891,310
256,063
635,247
Transfers out
50,000
50,000
-
50,000
Total Charges to Appropriations
25,574,200
26,339,960
24,332,753
2,007,207
Budgetary Fund Balance, June 30
$ 25,600,912
$ 24,835,152
$ 28,556,266
$ 3,721,114
67
CITY OF ROSEMEAD, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
AMERICAN RESCUE PLAN
FOR THE YEAR ENDED JUNE 30, 2022
Budgetary Fund Balance, July 1
Available for Appropriations (Inflows):
Intergovernmental
Amounts Available for Appropriations
Charges to Appropriation (Outflows):
General government
Public works
Transfers out
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Budget Amounts
Original Final
Variance with
Final Budget
Actual Positive
Amounts (Negative)
8,939,300 17,878,600 170,989 (17,707,611)
8,939,300 17,878,600 170,989 (17,707,611)
273,900 154,098 119,802
- 39,000 16,891 22,109
1,500,000 11,500,000 - 11,500,000
1,500,000 11,812,900 170,989 11,641,911
$ 7,439,300 $ 6,065,700 $ $ (6,065,700)
W
CITY OF ROSEMEAD, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
SLFRF
FOR THE YEAR ENDED JUNE 30, 2022
Budgetary Fund Balance, July 1
Available for Appropriations (Inflows):
Transfers in
Amounts Available for Appropriations
Budgetary Fund Balance, June 30
Budget Amounts
Original Final
10,000,000
10,000,000
Variance with
Final Budget
Actual Positive
Amounts (Negative)
(10,000,000)
(10,000,000)
$ - $ 10,000,000 $ - $ (10,000,000)
m
CITY OF ROSEMEAD, CALIFORNIA
COST-SHARING MULTIPLE EMPLOYER MISCELLANEOUS PLANS
SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS ")
Measurement Date
Proportion of the Net Pension Liability
Proportionate Share of the Net Pension Liability
Covered Payroll
Proportionate Share of the Net Pension Liability as
Percentage of Covered Payroll
Plan Fiduciary Net Position as a Percentage of the
Total Pension Liability
2022
2021
2020
6/30/2021
6/30/2020
6/30/2019
0.08338°/
0.08279%
0.08643%
$ 4,509,289
$ 9,007,798
$ 8,856,781
$ 3,832,817
$ 3,832,817
$ 3,903,914
118%
235%
227%
88.3%
75.3%
75.3%
Notes to Schedule of Proportionate Share of the Net Pension Liability
Benefit Changes: None.
Changes of Assumptions: In 2018, demographic assumptions and inflate rate were changed in accordance to the CaIPERS Experience
Study and Review of Actuarial Assumptions December 2017. There were no chnages in the discount rate.
/'� Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of
implementation, therefore only six years are shown.
70
2019
2018
2017
2016
2015
6/30/2018
6/30/2017
6/30/2016
6/30/2015
6/30/2014
0.09186%
0.09661%
0.09959%
0.27841%
0.10996%
$ 8,688,626
$ 9,309,566
$ 8,617,416
$ 7,638,064
$ 6,842,230
$ 3,761,962
$ 3,690,780
$ 3,444,503
$ 3,444,503
$ 4,604,511
231%
252%
250%
222%
149%
75.3%
73.3%
74.1%
69.7%
155.3%
71
CITY OF ROSEMEAD, CALIFORNIA
COST-SHARING MULTIPLE EMPLOYER MISCELLANEOUS PLANS
SCHEDULE OF PLAN CONTRIBUTIONS
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS
Actuarially Determined Contribution
Contribution in Relation to the Actuarially Determined Contribution
Contribution Deficiency (Excess)
Covered Payroll
Contributions as a Percentage of Covered Payroll
2022 2021 2020
$ 1,036,079 $ 1,013,310 $ 1,446,875
(1,036,079) (1,013,310) (1,446,875)
$ 4,185,828 $ 3,832,817 $ 3,832,817
24.8% 26.4% 37.7%
Notes to Schedule of Plan Contributions:
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2021-22 were derived from
the June 30, 2017 funding valuation report.
Actuarial Cost Method:
Entry Age Normal
Amortization Method/Period:
For details, see June 30, 2016 Funding Valuation
Report.
Asset Valuation Method:
Market Value of Assets. For details, see
June 30, 2016 Funding Valuation Report.
Inflation:
2.50%
Salary Increases:
Varies by Entry Age and Service
Payroll Growth:
2.75%
Investment Rate of Return:
7.00% Net of Pension Plan Investment and
Administrative Expenses; includes Inflation.
Retirement Age:
The probabilities of Retirement are based on the
2014 CalPERS Experience Study for the period of
1997 to 2011.
Mortality:
The probabilities of mortality are based on the
2014 CalPERS Experience Study for the period
from 1997 to 2011. Pre -retirement and
Post-retirement mortality rates include 20 years of
projected mortality improvement using Scale BB
published by the Society of Actuaries.
i'i Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of
implementation, therefore only seven years are shown.
72
2019 2018 2017 2016 2015
$ 1,389,145 $ 1,487,464 $ 1,113,875 $ 1,113,875 $ 910,907
(1,389,145) (1,487,464) (1,113,875) (1,113,875) (910,907)
$ 3,903,914 $ 3,761,962 $ 3,690,780 $ 3,444,503 $ 4,604,511
35.6% 39.5% 30.2% 32.3% 19.8%
73
CITY OF ROSEMEAD, CALIFORNIA
PARS RETIREMENT ENHANCEMENT PLAN
SCHEDULE OF CHANGES IN NET PENSION LIABILITY (ASSET) AND RELATED RATIOS
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
Plan Fiduciary Net Position
Contribution - Employer
2022
2021
2020
Total Pension Liability
(459,657)
660,793
96,972
Service Cost
$ 24,732
$ 24,070
$ 25,883
Interest
175,746
171,039
172,888
Effect of Liability Gains or Losses
-
110,471
-
Effect of Assumption Changes or Inputs
-
-
-
Benefit Payments, Including Refunds of employee Contributions
(237,325)
(230,403)
(220,611)
Net Change in Total Pension Liability
(36,847)
75,177
(21,840)
Total Pension Liability - Beginning
2,795,850
2,720,673
2,742,513
Total Pension Liability - Ending (a)
$ 2,759,003
$ 2,795,850
$ 2,720,673
Plan Fiduciary Net Position
Contribution - Employer
$ 68,424
$ 75,165
$ 112,649
Net Investment Income
(459,657)
660,793
96,972
Benefit Payments, Including Refunds of Employee Contributions
(237,325)
(230,403)
(220,611)
Other Changes in Fiduciary Net Position
(1,280)
(1,316)
(1,441)
Net Change in Fiduciary Net Position
(629,838)
504,239
(12,431)
Plan Fiduciary Net Position - Beginning
3,746,876
3,242,637
3,255,068
Plan Fiduciary Net Position - Ending (b)
$ 3,117,038
$ 3,746,876
$ 3,242,637
Plan Net Pension Liability/(Assets) - Ending (a) - (b) $ (358,035) $ (951,026) $ (521,964)
Plan Fiduciary Net Position as a Percentage of the Total Pension Liability
113.0%
134.0%
119.2%
Covered Payroll
$ 1,618,148
$ 1,780,371
$ 2,300,379
Plan Net Pension Liability/(Asset) as a Percentage of Covered Payroll
-22.13%
-53.4%
-22.7%
Notes to Schedule of Changes in the Net Pension Liability (Asset) and Related Ratios:
Changes of Assumptions: There were no changes in assumptions.
Historical information is required only for measurement for which GASB 68 is applicable. Fiscal year 2015 was the first year of
implementation, therefore only eight years are shown.
`L!
2019 2018 2017 2016 2015
$ 25,190
$ 37,502
$ 36,410
$ 45,435
$ 44,112
170,716
171,215
192,440
191,270
190,667
17,567
-
(355,400)
-
-
32,827
-
-
-
-
(206,738)
(201,490)
(200,693)
(218,411)
(234,960)
39,562
7,227
(327,243)
18,294
(181)
2,702,951
2,695,724
3,022,967
3,004,673
3,004,854
$ 2,742,513
$ 2,702,951
$ 2,695,724
$ 3,022,967
$ 3,004,673
$ 131,770 $ 140,376 $ 164,389 $ 265,241 $ 273,711
187,985 175,605 266,884 (2,345) 59,329
(206,738) (201,490) (200,693) (218,411) (234,960)
(1,440) (1,461) (6,848) (2,624) (5,864)
111,577 113,030 223,732 41,861 92,216
3,143,491 3,030,461 2,806,729 2,764,868 2,672,652
$ 3,255,068 $ 3,143,491 $ 3,030,461 $ 2,806,729 $ 2,764,868
$ (512,555) $ (440,540) $(334,737) $ 216,238 $ 239,805
118.7% 116.3% 112.4% 92.8% 92.0%
$ 2,238,812 $ 2,178,892 $ 2,414,510 $ 2,344,184 $ 3,060,587
-22.9% -20.2% -13.9% 9.2% 7.8%
Vil
CITY OF ROSEMEAD, CALIFORNIA
PARS RETIREMENT ENHANCEMENT PLAN
SCHEDULE OF PLAN CONTRIBUTIONS
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS
Actuarially Determined Contribution
Contribution in Relation to the Actuarially Determined Contribution
Contribution Deficiency (Excess)
Covered Payroll
Contributions as a Percentage of Covered Payroll
Note to Schedule of Plan Contributions:
Valuation Date:
Methods and assumptions used to determine contribution rates:
Actuarial cost method
Amortization method
Remaining amortization period
Inflation
Salary Increases
Investment rate of return
Payroll Growth
Cost of Living Adjustments
Mortality
2022 2021 2020
24,747 $ 20,100 $ 25,970
(68,424) (75,165) (112,649)
$ (43,677) $ (55,065) $ (86,679)
1,618,148 $ 1,780,371 $ 2,300,379
4.2% 4.2% 4.9%
June 30, 2021
Entry age normal
Level dollar, closed
2 years
2.50%
3.4% to 12.20%, depending on years of service
6.50%
2.75%
2.00%
Consistent with the Non-Indusrial rates used to value Miscellaneous
Agency CalPERS Pension Plans.
i" Historical information is required only for measurement for which GASB 68 is applicable. Fiscal year 2015 was the first year of
implementation, therefore only eight years are shown.
76
2019
2018
2017
2016
2015
$ 73,864
$ 81,888
$ 88,845
$ 116,244
$ 133,267
(131,770)
(140,376)
(164,389)
(265,241)
(273,711)
$ (140,444)
$ 2,238,812 $ 2,178,892 $ 2,414,510 $ 2,344,184 $ 3,060,587
5.9% 6.4% 6.8% 11.3% 8.9%
77
CITY OF ROSEMEAD, CALIFORNIA
SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY (ASSET) AND RELATED RATIOS
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS ""
Total OPEB Liability
Service cost
Interest on the total OPEB liability
Actual and expected experience difference
Changes in assumptions
Benefit payments
Net change in total OPEB liability
Total OPEB liability- beginning
Total OPER liability - ending (a)
Plan Fiduciary Net Position
Contribution - employer
Net investment income
Benefit payments
Administrative expense
Net change in plan fiduciary net position
Plan fiduciary net position - beginning
Plan fiduciary net position -ending (b)
Net OPEB (Asset) Liability - ending (a) - (b)
2022 2021 2020 2019 2018
$ 116,753 $ 115,714 $ 155,962 $ 151,419 $ 147,009
258,626 249,416 268,709 253,402 237,920
(106,136) - (479,267) - -
200,671 - (42,977) -
(223,397) (201,882) (165,606) (142,897) (119,682)
246,517 163,248 (263,179) 261,924 265,247
4,305,390 4,142,142 4,405,321 4,143,397 3,878,150
4,551,907 4,305,390 4,142,142 4,405,321 4,143,397
179,672 45,227 97,132 22,063 158,082
848,323 136,814 242,596 223,704 336,797
(223,397) (201,882) (165,606) (142,897) (119,682)
(11,139) (10,252) (9,719) (9,889) (8,925)
793,459 (30,093) 164,403 92,981 366,272
3,810,549 3,840,642 3,676,239 3,583,258 3,216,986
4,604,008 3,810,549 3,840,642 3,676,239 3,583,258
S (52,101) S 494,841 $ 301,500 $ 729,082 $ 560,139
Plan fiduciary net position as a percentage of the total OPEB liability 101.1% 68.5% 92.7% 83.4% 86.5%
Covered -employee payroll $ 4,185,828 $ 3,832,817 $ 3,903,914 $ 3,761,962 $ 3,690,780
Net OPEB liability as a percentage of covered -employee payroll -1.2% 12.9% 7.7% 19.4 % 15.2%
Notes to Schedule:
i" Histoncal information is required only for the measurement periods for which GASB 75 is applicable. Fiscal Year 2018 was the first year of implementation. Future
years' information will be displayed up to 10 years as information becomes available.
78
CITY OF ROSEMEAD, CALIFORNIA
OTHER POST -EMPLOYMENT BENEFIT PLAN
SCHEDULE OF PLAN CONTRIBUTIONS
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS
Covered -employee payroll $ 4,185,828 $ 3,888,373 $ 3,832,817 $ 3,903,914 $ 3,761,962
Contributions as a percentage of covered -employee payroll 2.4% 4.6% 1.2% 2.5% 0.6%
Notes to Schedule:
Actuarial methods and assumptions used to set the actuarially determined contribution for Fiscal Year 2018 were from the December 31, 2016 actuarial valuation.
Valuation Date:
2022
2021
2020
2019
2018
Actuarially Determined Contribution
$ 167,000
$ 163,000
$ 202,000
$ 197,000
$ 192,000
Contribution in Relation to the Actuarially Determined Contributions
(100,859)
(179,672)
(45.227)
(97,132)
(22,063)
Contribufon Deficiency (Excess)
$ 66,141
$ (16,672)
$ 156,773
$ 99,868
$ 169,937
Covered -employee payroll $ 4,185,828 $ 3,888,373 $ 3,832,817 $ 3,903,914 $ 3,761,962
Contributions as a percentage of covered -employee payroll 2.4% 4.6% 1.2% 2.5% 0.6%
Notes to Schedule:
Actuarial methods and assumptions used to set the actuarially determined contribution for Fiscal Year 2018 were from the December 31, 2016 actuarial valuation.
Valuation Date:
June 30, 2019
Actuarial Cost Method:
Entry Age Normal, Level Percentage of Payroll
Amortization Method'.
Level percent of pay
Amortization Penod:
17 -year fixed period for 2021122
Asset Valuation Method:
Investment gains and losses spread over 5 -year
rolling period
Discount Rate:
General Inflation:
Medical Trend:
Non -Medicare -7.25% for 2021, decreasing to an
ultimate rate of 4.0% in 2076
Medicare - 6.3% for 2021, decreasing to an
ultimate rate of 4.0% in 2076
Mortality:
CalPERS 1997-2015 expenence study
Mortality Improvement.
Mortality projected fully generational with Scale MP -19
All Other Assumptions:
Same as those used to determine the total OPEB
liability
1t1 Historical information is required only for the measurement periods for which GASB 75 is applicable. Fiscal Year 2018 was the first year of implementation. Future
years' information will be displayed up to 10 years as information becomes available.
,2� Contributions include implied subsidies.
CITY OF ROSEMEAD, CALIFORNIA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022
Assets:
Cash and investments
Receivables:
Accounts receivable
Notes and loans
Accrued Interest
Due from other governments
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances (Deficits):
Liabilities:
Accounts payable
Accrued liabilities
Unearned revenues
Deposits payable
Due to other funds
Retentions payable
Total Liabilities
Defamed Inflows of Resources:
Unavailable revenues
Total Defamed Inflows of Resources
Fund Balances (Deficits):
Restricted:
Community services
Low and moderate income housing
Public works
Unassigned (deficit)
Total Fund Balances (Deficits)
Total Liabilities, Defamed Inflows of
Resources, and Fund Balances (Deficits)
7E
Special Revenue Funds
Local
Transportation)
State Gas Tax Sidewalk Grant Proposition A Proposition C
$ 2,710,331 $ - $ 1,077,018 $ 2,859,135
8,000
5,886 - 2,213 6,073
94,804 22,273
$ 2,819,021 $ 22,273 $ 1,079,231 $ 2,865,208
$ 17,410 $ 384 $ 192,054 $ 104
7,436 - 3,239 1,344
21,059
830
24,846 22,273 195,293 1,448
2,794,175 - 883,938 2,863,760
2,794,175 883,938 2,863,760
$ 2,819,021 $ 22,273 $ 1,079,231 $ 2,865,208
CITY OF ROSEMEAD, CALIFORNIA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30 2022 (CONTINUED)
Assets:
Cash and investments
Receivables:
Amounts receivable
Notes and loans
Accrued interest
Due from other governments
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances (Deficits):
Liabilities:
Accounts payable
Accrued liabilities
Unearned revenues
Deposits payable
Due to other funds
Retentions payable
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances (Deficits):
Restricted:
Community services
Low and moderate income housing
Public works
Unassigned (de0cit)
Total Fund Balances (Deficits)
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances (Deficits)
81
Special Revenue Funds
Air Quality
Management
Measure R Measure M District Street Lighting
$ 3,201,346 $ 3,819,070 $ 473,434 $ 3,490,006
6,947 8,183 1,022 7,696
17,836 67,121
$ 3,208,293 $ 3,827,253 $ 492,292 $ 3,564,823
$ 432,991 $ 554,528 $ - $ 106,705
549 231 - 3,488
4,953 45,497 -
438,493 600,256 110,193
2,769,800 3,226,997 492,292 3,454,630
2,769,800 3,226 997 492,292 3,454,630
$ 3,208,293 $ 3,827,253 $ 492,292 $ 3,564,823
CITY OF ROSEMEAD, CALIFORNIA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022
Assets:
Cash and investments
Receivables:
Accounts receivable
Notes and loans
Accrued interest
Due from other governments
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances (Deficits):
Liabilities:
Accounts payable
Accrued liabilities
Unearned revenues
Deposits payable
Due to other funds
Retentions payable
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances (Deficits):
Restricted:
Community services
Low and moderate income housing
Public works
Unassigned (deficit)
Total Fund Balances (Deficits)
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances (Deficits)
Special Revenue Funds
164
Development
Development
Development
Impact Fee
Development
Impact Fee
Impact Fee
General
Impact Fee
Traffic
Public Safety
Government
Parks
$ 78,610
$ 11,546
$ 81,436
$ 340,660
164
25
176
739
E 78,774
E
11,571
$
81,612
$
341,399
78,774 11,571 - 341,399
81,612
78,774 11,571 81,612 341,399
$ 78,774 $ 11,571 $ 81,612 $ 341,399
99
CITY OF ROSEMEAD, CALIFORNIA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30 2022 (CONTINUED)
Assets:
Cash and investments
Receivables:
Accounts receivable
Notes and loans
Accrued interest
Due from other governments
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances (Deficits):
Liabilities:
Accounts payable
Accrued liabilities
Unearned revenues
Deposits payable
Due to other funds
Retentions payable
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances (Deficits):
Restricted:
Community services
Low and moderate income housing
Public works
Unassigned (deficit)
Total Fund Balances (Deficits)
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances (Deficits)
Soecial Revenue Funds
$ - $ 831,340 $ 451,655 $ 3,060,294
9,552
- 3,207,200 - -
- 1,828 361 6,606
226,595 12,029 216,861 177,902
$ 226,595$ 4,052,397 $ 678,429 $ 3,244,802
$ 40,842 $ 5,900 $ 7,372 $ 330,923
894 395 - 983
83
42,983
189,965 - 197,552 -
61,916
231,701 6,295 247,907 393,822
4,046,102 - -
- 430,522 -
- - 2,850,980
(5,106) - -
(5,106) 4,046,102 430,522 2,850,980
$ 226,595 $ 4,0521397 $ 678,429 $ 3,244,802
Road
Community
Rosemead
Maintenance
Development
Housing
and
Block Grant HOME
Development
Rehabilitation
(CDBG) Program
Corporation
Account SBI
$ - $ 831,340 $ 451,655 $ 3,060,294
9,552
- 3,207,200 - -
- 1,828 361 6,606
226,595 12,029 216,861 177,902
$ 226,595$ 4,052,397 $ 678,429 $ 3,244,802
$ 40,842 $ 5,900 $ 7,372 $ 330,923
894 395 - 983
83
42,983
189,965 - 197,552 -
61,916
231,701 6,295 247,907 393,822
4,046,102 - -
- 430,522 -
- - 2,850,980
(5,106) - -
(5,106) 4,046,102 430,522 2,850,980
$ 226,595 $ 4,0521397 $ 678,429 $ 3,244,802
CIN OF ROSEMEAD, CALIFORNIA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022
Assets:
Cash and investments
Receivables:
Amounts receivable
Notes and loans
Accrued interest
Due from other governments
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances (Deficits):
Liabilities:
Amounts payable
Accrued liabilities
Unearned revenues
Deposits payable
Due to other funds
Retentions payable
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances (Deficits):
Restricted:
Community services
Low and moderate income housing
Public works
Unassigned (deficit)
Total Fund Balances (Deficits)
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances (Deficits)
Capital Projects
Special Revenue Funds Fund
Total
City Grants Clean Water Measure H Governmental
Fund Fund Grant Measure RCP Funds
$ 196,851 $ 651,659 $ - $ - $ 23,334,391
17,552
- - 3,207,200
- 1,491 - - 49,410
189,273 - 146,005 1,170,699
$ 3861124 $ 653,150 $ $ 146,005 $ 27,779,252
$ 6,795 $ 30,703 $ - $ 74,830 $ 1,801,541
- - 18,559
377,454 - - - 377,454
- 42,983
71,175 479,751
1,875 - 115,071
386,124 30,703 146,065 2,835,359
26,662 78,389 105,051
26,662 78,389 105,051
4,477,846
- - - 430,522
622,447 - - 20,040,631
(26,662) - (78,389) (110,157)
(26,662) 622,447 (78389) 24838,842
$ 386,124 $ fi53,150 $ $ 146,005 $ 27,779,252
84
THIS PAGE INTENTIONALLY LEFT BLANK
85
CITY OF ROSEMEAD, CALIFORNIA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2022
Revenues:
Taxes
Intergovernmental
Charges for services
Use of money and property (loss on investments)
Developer participation
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety
Community development
Parks and recreation
Public works
Capital outlay
Total Expenditures
Net Change in Fund Balances
Fund Balances (Deficit), Beginning of Year
Fund Balances (Deficit), End of the Year
Special Revenue Funds
Local
Transportation/
State Gas Tax Sidewalk Grant Proposition A Proposition C
1,267,505 22,273 1,372,830 1,138,734
8,000 - 15,001 -
198 25 675
1,275,703 22,273 1,387,856 1,139,409
2,700
- 46,876
7,560
41,511
- -
8,861
-
18,181
-
576,627
- 1,186,224
23,167
22,273
620,838
22,273 1,251,281
39,588
654,865
- 136,575
1,099 821
M
2,139,310 747,363 1,763,939
$ 2,794,175 $ $ 883,938 $ 2,863,760
CITY OF ROSEMEAD, CALIFORNIA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2022 (CONTINUED)
Revenues:
Taxes
Intergovernmental
Charges for services
Use of money and property (loss on investments)
Developer participation
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety
Community development
Parks and recreation
Public works
Capital outlay
Total Expenditures
Net Change in Fund Balances
Fund Balances (Deficit), Beginning of Year
Fund Balances (Deficit), End of the Year
87
Special Revenue Funds
Air Quality
Management
Measure R Measure M District Street Lighting
$ - $ - $ - $ 121,679
853,913 966,300 69,783 1,170,291
328 370 (36) 142
864,241 966,670 69,747 1292,112
14,033
507086 15,319 15,388 870,082
601,140
521,119 616,459 15,388 870,082
333,122 350,211 54,359 422,030
2,436,678 2876,786 437,933 3,032,600
$ 2,769,800 $ 3,226,997 $ 492,292 $ 3,454,630
CITY OF ROSEMEAD, CALIFORNIA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2022
Revenues:
Taxes
Intergovernmental
Charges for services
Use of money and property (loss on investments)
Developer participation
Miscellaneous
Total Revenues
Expenditures:
Cuvent:
General government
Public safety
Community development
Parks and recreation
Public works
Capital outlay
Total Expenditures
Net Change in Fund Balances
Fund Balances (Deficit), Beginning of Year
Special Revenue Funds
Development
Development Development Impact Fee Development
Impact Fee Impact Fee General Impact Fee
Traffic Public Safety Government Parks
13 2 4 14
25,604 2,531 17,658 66,869
25,617 2,533 17,662 68,883
25,617 2,533 17,662 68,883
53,157 9,038 63,950 272,516
Fund Balances (Deficit), End of the Year $ 78,774 $ 11,571 $ 81,612 $ 341,399
M
CITY OF ROSEMEAD, CALIFORNIA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2022 (CONTINUED)
Revenues:
Taxes
Intergovernmental
Charges for services
Use of money and property (loss on investments)
Developer participation
Miscellaneous
Total Revenues
Expenditures:
Current.
General government
Public safety
Community development
Parks and recreation
Public works
Capital outlay
Total Expenditures
Net Change in Fund Balances
Fund Balances (Deficit), Beginning of Year
Special Revenue Funds
481,222 75,588 428,978 1,076,043
6,792 - 474,233 -
- 58 7,981 (775)
- - 6,212
488,014 75,646 917,404 1,075,268
61,497 28,800 - -
375,965 46,789 904,185 -
24,365 - - -
- - - 158,830
19,399 1.306,865
481,226 75,589 904,185 1,465,695
6,788 57 13,219 (390,427)
(11,894) 4,046,045 417,303 3,241,407
Fund Balances (Deficit), End of the Year$ (5,106) $ 4,046,102 $ 430,522 $ 2,850,980
99
Road
Community
Rosemead
Maintenance
Development
Housing
and
Block Grant
Development
Rehabilitation
(CDBG) HOME Program
Corporation
Account SB1
481,222 75,588 428,978 1,076,043
6,792 - 474,233 -
- 58 7,981 (775)
- - 6,212
488,014 75,646 917,404 1,075,268
61,497 28,800 - -
375,965 46,789 904,185 -
24,365 - - -
- - - 158,830
19,399 1.306,865
481,226 75,589 904,185 1,465,695
6,788 57 13,219 (390,427)
(11,894) 4,046,045 417,303 3,241,407
Fund Balances (Deficit), End of the Year$ (5,106) $ 4,046,102 $ 430,522 $ 2,850,980
99
CITY OF ROSEMEAD, CALIFORNIA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30. 2022
Revenues:
Taxes
Intergovernmental
Charges for services
Use of money and property (loss on investments)
Developer participation
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety
Community development
Parks and recreation
Public works
Capital outlay
Total Expenditures
Net Change in Fund Balances
Fund Balances (Deficit), Beginning of Year
Fund Balances (Deficit), End of the Year
Capital Projects
Special Revenue Funtls Fund
Total
City Grants Clean Water Measure H Governmental
Fund Fund Grant Measure R CP Funtls
$ - $ - $ - $ - $ 121,679
162,612 570,005 5,000 67,616 9,728,693
- - - - 504,026
- 229 - - 9,228
- - - 114,662
6,212
162,612 570,234 5,000 67,616 10,484,500
-
-
5,000 - 166,466
-
-
- - 50,372
67,299
-
- - 1,394,238
-
-
- - 42,546
6,796
281,946
- - 3,641,465
37,500
146,005 2,133,182
111,595
281,946
5,000 146,005 7,428,269
51,017
288,288
- (78,389) 3,056,231
(77,679)
334,159
21,782,611
$ (26,662) $ 622,447 $ $ (78,389) $ 24,838,842
CITY OF ROSEMEAD, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
STATE GAS TAX
FOR THE YEAR ENDED JUNE 30, 2022
Charges to Appropriation (Outflows)
General government
2,800
2,800
2,700
Variance with
Public safety
41,600
41,600
41,511
Final Budget
Public works
Budget Amounts
Actual
Positive
159,473
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 2,139,310
$ 2,139,310
$ 2,139,310
$ -
Available for Appropriations (Inflows):
Budgetary Fund Balance, June 30
$ 891,810
$ 1,536,810
$ 2,794,175
Intergovernmental
1,302,000
1,302,000
1,267,505
(34,495)
Charges for services
8,000
8,000
8,000
Use of money and property
15,000
15,000
198
(14,802)
Amounts Available for Appropriations
3,464,310
3,464,310
3,416,013
(49,297)
Charges to Appropriation (Outflows)
General government
2,800
2,800
2,700
100
Public safety
41,600
41,600
41,511
89
Public works
736,100
736,100
576,627
159,473
Capital outlay
1,792,000
1,147,000
-
1,147,000
Total Charges to Appropriations
2,572,500
1,927,500
620,838
1,306,662
Budgetary Fund Balance, June 30
$ 891,810
$ 1,536,810
$ 2,794,175
$ 1,257,365
CITY OF ROSEMEAD, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
LOCAL TRANSPORTATION/SIDEWALK GRANT
FOR THE YEAR ENDED JUNE 30, 2022
Budgetary Fund Balance, July 1
Available for Appropriations (Inflows):
Intergovernmental
Amounts Available for Appropriations
Charges to Appropriation (Outflows):
Capital outlay
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Budget Amounts
Original Final
Variance with
Final Budget
Actual Positive
Amounts (Negative)
41,700 41,700 22,273 (19,427)
41,700 41,700 22,273 (19,427)
41,700 41,700 22,273 19,427
41,700 41,700 22,273 19,427
lYA
CITY OF ROSEMEAD, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
PROPOSITION A
FOR THE YEAR ENDED JUNE 30, 2022
Charges to Appropriation (Outflows)
General government
72,800
72,800
46,876
Variance with
Parks and recreation
198,000
198,000
18,181
Final Budget
Public works
Budget Amounts
Actual
Positive
90,276
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 747,363
$ 747,363
$ 747,363
$ -
Available for Appropriations (Inflows):
Intergovernmental
1,097,800
1,097,800
1,372,830
275,030
Charges for services
115,000
115,000
15,001
(99,999)
Use of money and property
7,500
7,500
25
(7,475)
Amounts Available for Appropriations
1,967,663
1,967,663
2,135,219
167,556
Charges to Appropriation (Outflows)
General government
72,800
72,800
46,876
25,924
Parks and recreation
198,000
198,000
18,181
179,819
Public works
1,276,500
1,276,500
1,186,224
90,276
Total Charges to Appropriations
1,547,300
1,547,300
1,251,281
296,019
Budgetary Fund Balance, June 30
$ 420,363
$ 420,363
$ 883,938 $
463,575
93
CITY OF ROSEMEAD, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
PROPOSITION C
FOR THE YEAR ENDED JUNE 30, 2022
Charges to Appropriation (Outflows)
General government
41,900
41,900
7,560
Variance with
Public safety
22,800
22,800
8,861
Final Budget
Public works
Budget Amounts
Actual
Positive
633
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 1,763,939
$ 1,763,939
$ 1,763,939
$ -
Available for Appropriations (Inflows):
Budgetary Fund Balance, June 30
$ 1,140,039
$ 465,039 $
2,863,760
Intergovernmental
910,600
910,600
1,138,734
228,134
Use of money and property
15,000
15,000
675
(14,325)
Amounts Available for Appropriations
2,689,539
2,689,539
2,903,348
213,809
Charges to Appropriation (Outflows)
General government
41,900
41,900
7,560
34,340
Public safety
22,800
22,800
8,861
13,939
Public works
23,800
23,800
23,167
633
Capital outlay
1,461,000
2,136,000
-
2,136,000
Total Charges to Appropriations
1,549,500
2,224,500
39,588
2,184,912
Budgetary Fund Balance, June 30
$ 1,140,039
$ 465,039 $
2,863,760
$ 2,398,721
94
CITY OF ROSEMEAD, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
MEASURE R
FOR THE YEAR ENDED JUNE 30, 2022
95
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 2,436,678
$ 2,436,678
$ 2,436,678
$ -
Available for Appropriations (Inflows):
Intergovernmental
683,000
683,000
853,913
170,913
Use of money and property
15,000
15,000
328
(14,672)
Amounts Available for Appropriations
3,134,678
3,134,678
3,290,919
156,241
Charges to Appropriation (Outflows):
General government
25,000
25,000
14,033
10,967
Public works
112,300
112,300
507,086
(394,786)
Capital outlay
1,370,000
2,633,151
-
2,633,151
Total Charges to Appropriations
1,507,300
2,770,451
521,119
2,249,332
Budgetary Fund Balance, June 30
$ 1,627,378
$ 364,227
$ 2,769,800
$ 2,405,573
95
CITY OF ROSEMEAD, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
MEASURE M
FOR THE YEAR ENDED JUNE 30, 2022
m
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 2,876,786
$ 2,876,786
$ 2,876,786
$ -
Available for Appropriations (Inflows):
Intergovernmental
774,030
774,030
966,300
192,270
Use of money and property
20,000
20,000
370
(19,630)
Amounts Available for Appropriations
3,670,816
3,670,816
3,843,456
172,640
Charges to Appropriation (Outflows):
General government
-
-
-
-
Public works
43,700
43,700
15,319
28,381
Capital outlay
1,413,000
3,287,000
601,140
2,685,860
Total Charges to Appropriations
1,456,700
3,330,700
616,459
2,714,241
Budgetary Fund Balance, June 30
$ 2,214,116
$ 340,116
$ 3,226,997
$ 2,886,881
m
CITY OF ROSEMEAD, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
AIR QUALITY MANAGEMENT DISTRICT
FOR THE YEAR ENDED JUNE 30, 2022
97
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1 $
437,933
$ 437,933
$ 437,933
$ -
Available for Appropriations (Inflows):
Intergovernmental
70,000
70,000
69,783
(217)
Use of money and property (loss on investments)
5,000
5,000
(36)
(5,036)
Amounts Available for Appropriations
512,933
512,933
507,680
(5,253)
Charges to Appropriation (Outflows):
Public works
10,100
10,100
15,388
(5,288)
Total Charges to Appropriations
10,100
10,100
15,388
(5,288)
Budgetary Fund Balance, June 30 $
502,833
$ 502,833
$ 492,292
$ (10,541)
97
CITY OF ROSEMEAD, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
STREET LIGHTING
FOR THE YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 3,032,600 $ 3,032,600 $ 3,032,600 $ -
Available for Appropriations (Inflows)
Taxes
-
-
121,679
121,679
Intergovernmental
1,300,000
1,300,000
1,170,291
(129,709)
Use of money and property
25,000
25,000
142
(24,858)
Amounts Available for Appropriations
4,357,600
4,357,600
4,324,712
(32,888)
Charges to Appropriation (Outflows):
General government
12,800
12,800
-
12,800
Public works
787,300
787,300
870,082
(82,782)
Capital outlay
1,210,000
1,210,000
-
1,210,000
Total Charges to Appropriations
2,010,100
2,010,100
870,082
1,140,018
Budgetary Fund Balance, June 30
$ 2,347,500
$ 2,347,500
$ 3,454,630
$ 1,107,130
4.1
CITY OF ROSEMEAD, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
DEVELOPMENT IMPACT FEE TRAFFIC
FOR THE YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 53,157 $
53,157
$ 53,157
$ -
Available for Appropriations (Inflows):
Use of money and property
400
400
13
(387)
Developer participation
5,000
5,000
25,604
20,604
Amounts Available for Appropriations
58,557
58,557
78,774
20,217
Budgetary Fund Balance, June 30
$ 58,557 $
58,557
$ 78,774
$ 20,217
CITY OF ROSEMEAD, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
DEVELOPMENT IMPACT FEE PUBLIC SAFETY
FOR THE YEAR ENDED JUNE 30, 2022
100
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 9,038
$ 9,038
$ 9,038
$ -
Available for Appropriations (Inflows):
Use of money and property
100
100
2
(98)
Developer participation
3,000
3,000
2,531
(469)
Amounts Available for Appropriations
12,138
12,138
11,571
(567)
Budgetary Fund Balance, June 30
$ 12,138
$ 12,138
$ 11,571
$ (567)
100
CITY OF ROSEMEAD, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
DEVELOPMENT IMPACT FEE GENERAL GOVERNMENT
FOR THE YEAR ENDED JUNE 30, 2022
101
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 63,950
$ 63,950
$ 63,950
$ -
Available for Appropriations (Inflows):
Use of money and property
500
500
4
(496)
Developer participation
10,000
10,000
17,658
7,658
Amounts Available for Appropriations
74,450
74,450
81,612
7,162
Budgetary Fund Balance, June 30
$ 74,450
$ 74,450
$ 81,612
$ 7,162
101
CITY OF ROSEMEAD, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
DEVELOPMENT IMPACT FEE PARKS
FOR THE YEAR ENDED JUNE 30, 2022
102
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 272,516
$ 272,516
$ 272,516
$ -
Available for Appropriations (Inflows):
Use of money and property
2,000
2,000
14
(1,986)
Developer participation
50,000
50,000
68,869
18,869
Amounts Available for Appropriations
324,516
324,516
341,399
16,883
Budgetary Fund Balance, June 30
$ 324,516
$ 324,516
$ 341,399
$ 16,883
102
CITY OF ROSEMEAD, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)
FOR THE YEAR ENDED JUNE 30, 2022
item
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Deficit, July 1
$ (11,894)
$ (11,894)
$ (11,894)
$ -
Available for Appropriations (Inflows):
Intergovernmental
2,324,600
2,324,600
481,222
(1,843,378)
Charges for services
-
-
61792
6,792
Amounts Available for Appropriations
2,312,706
2,312,706
476,120
(1,836,586)
Charges to Appropriation (Outflows):
General government
96,400
96,400
61,497
34,903
Community development
1,827,600
1,827,600
375,965
1,451,635
Parks and recreation
50,600
50,600
24,365
26,235
Capital outlay
350,000
350,000
19,399
330,601
Total Charges to Appropriations
2,324,600
2,324,600
481,226
1,843,374
Budgetary Fund Deficit, June 30
$ (11,894)
$ (11,894)
$ (5,106)
$ 6,788
item
CITY OF ROSEMEAD, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
HOMEPROGRAM
FOR THE YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1, as restated
$ 4,046,045
$ 4,046,045
$ 4,046,045
$ -
Available for Appropriations (Inflows):
Intergovernmental
2,127,900
2,127,900
75,588
(2,052,312)
Use of money and property
7,500
7,500
58
(7,442)
Amounts Available for Appropriations
6,181,445
6,181,445
4,121,691
(2,059,754)
cnarges TO Appropriazion tvuznowsl:
General government
33,600
33,600
28,800
4,800
Community development
2,101,800
2,101,800
46,789
2,055,011
Total Charges to Appropriations
2,135,400
2,135,400
75,589
2,059,811
Budgetary Fund Balance, June 30
$ 4,046,045
$ 4,046,045
$ 4,046,102
$ 57
CITY OF ROSEMEAD, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
ROSEMEAD HOUSING DEVELOPMENT CORPORATION
FOR THE YEAR ENDED JUNE 30, 2022
105
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 417,303
$ 417,303
$ 417,303
$ -
Available for Appropriations (Inflows):
Intergovernmental
437,000
437,000
428,978
(8,022)
Charges for services
475,800
475,800
474,233
(1,567)
Use of money and property
-
-
7,981
7,981
Miscellaneous
4,600
4,600
6,212
1,612
Amounts Available for Appropriations
1,334,703
1,334,703
1,334,707
4
Charges to Appropriation (Outflows):
Community development
917,400
917,400
904,185
13,215
Total Charges to Appropriations
917,400
917,400
904,185
13,215
Budgetary Fund Balance, June 30
$ 417,303
$ 417,303
$ 430,522
$ 13,219
105
CITY OF ROSEMEAD, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
CITY GRANTS FUND
FOR THE YEAR ENDED JUNE 30. 2022
Budgetary Fund Deficit, July 1
Available for Appropriations (Inflows):
Intergovernmental
Amounts Available for Appropriations
Charges to Appropriation (Outflows):
Community development
Public works
Capital outlay
Total Charges to Appropriations
Budgetary Fund Deficit, June 30
Variance with
Final Budget
Amounts Actual Positive
Original
Final
Amounts
(Negative)
$ (77,679) $
(77,679)
$ (77,679)
$ -
328,300
435,800
162,612
(273,188)
250,621
358,121
84,933
(273,188)
80,000
104,600
67,299
37,301
-
48,000
6,796
41,204
300,000
2,734,458
37,500
2,696,958
380,000
2,887,058
111,595
2,775,463
$ (129,379) $ (2,528,937) $ (26,662) $ 2,502,275
106
CITY OF ROSEMEAD, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
ROAD MAINTENANCE AND REHABILITATION ACCOUNT SBI
FOR THE YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 3,241,407
$ 3,241,407
$ 3,241,407
$ -
Available for Appropriations (Inflows):
Intergovernmental
1,044,300
1,044,300
1,076,043
31,743
Use of money and property (investment loss)
20,000
20,000
(775)
(20,775)
Amounts Available for Appropriations
4,305,707
4,305,707
4,316,675
10,968
Charges to Appropriation (Outflows):
Public works
206,600
206,600
158,830
47,770
Capital outlay
1,283,000
3,756,400
1,306,865
2,449,535
Total Charges to Appropriations
1,489,600
3,963,000
1,465,695
2,497,305
Budgetary Fund Balance, June 30
$ 2,816,107
$ 342,707
$ 2,850,980
$ 2,508,273
CITY OF ROSEMEAD, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
CLEAN WATER FUND
FOR THE YEAR ENDED JUNE 30, 2022
108
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 334,159
$ 334,159
$ 334,159
$ -
Available for Appropriations (Inflows):
Intergovernmental
570,000
570,000
570,005
5
Use of money and property
1,000
1,000
229
(771)
Amounts Available for Appropriations
905,159
905,159
904,393
(766)
Charges to Appropriation (Outflows):
Public works
502,500
502,500
281,946
220,554
Capital outlay
-
200,000
-
200,000
Total Charges to Appropriations
502,500
702,500
281,946
420,554
Budgetary Fund Balance, June 30
$ 402,659
$ 202,659
$ 622,447
$ 419,788
108
CITY OF ROSEMEAD, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
MEASURE R CP
FOR THE YEAR ENDED JUNE 30, 2022
Budgetary Fund Balance, July 1
Available for Appropriations (Inflows):
Intergovernmental
Amounts Available for Appropriations
Charges to Appropriation (Outflows):
Capital outlay
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Budget Amounts
Original Final
27,000,000 146,005 26,853,995
27,000,000 146,005 26,853,995
8 $ (27,000,000) $ (78,389) $ 26,921,611
109
Variance with
Final Budget
Actual
Positive
Amounts
(Negative)
67,616
67,616
67,616
67,616
27,000,000 146,005 26,853,995
27,000,000 146,005 26,853,995
8 $ (27,000,000) $ (78,389) $ 26,921,611
109
CITY OF ROSEMEAD, CALIFORNIA
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
JUNE 30, 2022
Assets:
Current Assets:
Cash and investments
Receivables:
Interest receivable
Total Current Assets
Noncurrent Assets:
Capital assets, net of accumulated depreciation
Total Noncurrent Assets
Total Assets
Net Position:
Investment in capital assets
Unrestricted
Total Net Position
110
Governmental Activities - Internal Service Funds
Equipment Technology
Replacement Replacement Totals
$ 576,269 $ 129,901 $ 706,170
1,299 288 1,587
577,568 130,189 707,757
- 4,105
4,105
- 4,105
4,105
577,568 134,294
711,862
- 4,105 4,105
577,568 130,189 707,757
$ 577,568 $ 134,294 $ 711,862
CITY OF ROSEMEAD, CALIFORNIA
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED JUNE 30, 2022
Operating Revenues:
Miscellaneous
Total Operating Revenues
Operating Expenses:
Contractual services
Depreciation expense
Total Operating Expenses
Operating Loss
Nonoperating Revenues (Expenses):
Interest expense
Total Nonoperating
Revenues(Expenses)
Change in Net Position
Net Position:
Net Position, Beginning of the Year
Net Position, End of the Year
111
Governmental Activities - Internal Service Funds
Equipment Technology
Replacement Replacement Totals
$ 48,940 $ - $ 48,940
48,940 48,940
102,707 15,304 118,011
1,045 821 1,866
103,752 16,125 119,877
(54,812) (16,125) (70,937)
(219) (89) (308)
(219) (89) (308)
(55,031) (16,214) (71,245)
632,599 150,508 783,107
$ 577,568 $ 134,294 $ 711,862
CITY OF ROSEMEAD, CALIFORNIA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED JUNE 30, 2022
Cash Flows from Operating Activities:
Cash received from customers and users
Cash paid to suppliers for goods and services
Net Cash Used by Operating Activities
Cash Flows from Investing Activities:
Investment loss
Net Cash Used by Investing Activities
Net Decrease in Cash and Cash Equivalents
Cash and Cash Equivalents, Beginning of the Year
Cash and Cash Equivalents, End of the Year
Reconciliation of Operating Loss to Net Cash
Used by Operating Activities:
Operating loss
Adjustments to reconcile operating loss to
net cash used by operating activities:
Depreciation
Decrease in accounts payable
Total Adjustments
Net Cash Used by Operating Activities
112
Governmental Activities - Internal Service Funds
Equipment Technology
Replacement Replacement Totals
$ 48,940 $ - $ 48,940
(102,707) (39,936) (142,643)
(53,767) (39,936) (93,703)
(575) (125) (700)
(575) (125) (700)
(54,342) (40,061) (94,403)
630,611 169,962 800,573
$ 576,269 $ 129,901 $ 706,170
$ (54,812) $ (16,125) $ (70,937)
1,045 821 1,866
- (24,632) (24,632)
1,045 (23,811) (22,766)
$(53,767) _1___J39,936)_ $ (93,703)
Statistical Section
THIS PAGE INTENTIONALLY LEFT BLANK
Statistical Section
This part of the City of Rosemead's Annual Comprehensive Financial Report presents detailed information
as a context for understanding what the information in the financial statements, note disclosures, and
required supplementary information says about the government's overall financial health.
Page
Financial Trend Information
These schedules contain trend information to help the reader understand how the
government's financial performance and wellbeing have changed over time.
1 Net Position by Component 114-121
2 Changes in Net Position
3 Fund Balances of Governmental Funds
4 Changes in Fund Balances of Governmental Funds
Revenue Capacity
These schedules contain trend information to help the reader assess the government's
mostsignificant revenue source, property tax.
5 Assessed Value and Estimated Actual Value of Taxable Property 122-125
6 Direct and Overlapping Property Tax Rates
7 Principal Property Taxpayers
8 Property Tax Levies and Collections
Debt Capacity
These schedules contain trend information to help the reader assess the affordability of
the government's current levels of outstanding debt and the government's ability to
issue additional debt in the future.
9 Direct and Overlapping Governmental Activities Debt 126-130
10 Legal Debt Margin
11 Pledged Revenue Coverage
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the government's financial activities take
place.
12 Demographic and Economic Statistics 131-134
13 Principal Employers
14 Top 25 Sales Tax Producers
15 Full -Time and Part -Time Positions by Function
Operating Information
These schedules contain service and infrastructure data to help the reader understand
how the information in the government's financial report relates to the services the
government provides and the activities it performs.
16 Operating Indicators by Function 135-136
17 Capital Asset Statistics
Sources: Unless otherwise noted, the information in these schedules is derived from the Comprehensive Annual Financial Reports
for the relevant year.
113
CITY OF ROSEMEAD
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
Governmental activities:
Net investment in capital assets
Restricted
Unrestricted
Total governmental activities net position
2013 2014 2015 2016 2017
51,132,854 50,042,631 52,038,429 51,542,030 52,806,193
2,829,147 3,110,688 3,419,068 4,005,847 4,387,055
17,724,709 17,367, 841 11,018,153 13,108, 874 15,690,721
71,686,710 70,521,160 66,475,650 68,656,751 72,883,969
Note: The City implemented GASB 75 in the FY 2018. Prior Year information was not restated to reflect the
impact of the implementation.
Source: City of Rosemead, Department of Finance
114
Schedule 1
2018 2019 2020 2021 2022
Governmental activities:
Net investment in capital assets
53,587,243
50,882,552
48,825,863
47,444,803
47,464,095
Restricted
3,554,634
9,730,202
13,681,082
21,872,184
24,948,999
Unrestricted
17,211,587
17,483,422
17,754,529
18,627,063
22,020,342
Total governmental activities net position
74,353,464
78,096,176
80,261,474
87,944,050
94,433,436
115
CITY OF ROSEMEAD
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
Expenses:
Governmental activities:
General government
Public safety
Public works
Community development
Parks and recreation
Interest and other charges
Total governmental activities expenses
Program revenues:
Governmental activities:
General government
Public safety
Public works
Community development
Parks and recreation
Total governmental activities
program revenues
Net revenues (expenses):
Governmental activities
Total net revenues (expenses)
2013 2014 2015 2016 2017
3,381,686
4,271,354
2,739,281
3,218,363
3,705,685
7,791,073
7,923,316
7,747,949
8,381,588
8,935,164
11,717,276
10,072,081
8,703,817
8,738,495
7,323,865
2,616,531
2,853,472
2,879,028
3,246,081
3,161,310
2,594,863
2,274,920
2,049,540
2,073,145
2,153,986
7,827
5,561
3,198
787
-
28,109,256
27,400,704
24,122,813
25,658,459
25,280,010
2,408,362
2,030,063
2,725,291
2,203,233
2,191,604
1,622,911
1,586,557
1,573,532
1,563,652
1,565,275
3,869,285
4,356,486
4,627,331
4,360,908
4,232,311
1,896,876
1,632,508
1,915,557
2,352,137
2,523,350
785,611
724,197
713,484
741,171
788,931
General revenues and other changes in net assets:
Governmental activities:
Taxes:
Property taxes
Sales and use taxes
Transient occupancy taxes
Othertaxes
Investment income
Other general revenues
Loss on sale of capital assets
Transfer to Successor Agency
Extraordinary item:
Gain on dissolution of redevelopment agency _
Total governmental activities 10,655,943 15,893,466 16,201,357 17,785,470 18,205,757
10,583,045 10,329,811 11,555,195 11,221,101 11,301,471
(17,526,211) (17,070,893) (12,567,618) (14,437,358) (13,978,539)
8,900,228
8,667,709
9,034,141
9,158,499
8,643,019
3,215,897
3,504,285
3,452,605
4,124,745
5,366,975
1,447,820
1,593,640
1,575,401
1,998,954
2,213,286
2,275,986
1,307,280
1,247,941
1,209,249
1,224, 230
28,202
216,499
97,589
348,651
20,526
1,180,688
604,053
793,680
945,372
737,721
(6,392,878)
Changes in net position
Governmental activities
Total primary government
$ (6,870,268) $ (1,177,427) $ 3,633,739 $ 3,348,112 $ 4,227,218
Source: City of Rosemead, Department of Finance
116
Expenses:
Governmental activities:
General government
Public safety
Public works
Community development
Parks and recreation
Interest and other charges
Total governmental activities expenses
Program revenues:
Governmental activities:
General government
Public safety
Public works
Community development
Parks and recreation
Total governmental activities
program revenues
Net revenues (expenses):
Governmental activities
Total net revenues (expenses)
Schedule 2
2018 2019 2020 2021 2022
4,554,063
4,205,482
4,003,674
4,659,583
5,285,495
9,499,683
9,125,853
9,744,134
10,679,425
10,975,401
9,554,073
6,353,025
9,946,662
9,372,263
9,374,004
3,409,699
2,376,713
3,472,477
3,411,076
3,139,695
2,746,482
7,662,344
2,920,016
1,916,949
2,560,821
-
-
-
-
46,540
29,764,000
29,723,417
30,086,963
30,039,296
31,381,956
1,769,171
819,371
658,428
1,516,276
957,346
1,787,151
1,847,594
1,834,717
1,944,901
2,135,448
5,208,427
6,238,575
6,024,968
6,715,497
7,777,754
4,265,255
3,373,246
3,403,251
4,610,737
4,349,154
828,038
958,176
624,313
163,168
503,128
General revenues and other changes in net assets:
Governmental activities:
Taxes:
Property taxes
Sales and use taxes
Transient occupancy taxes
Othertaxes
Investment income
Other general revenues
Loss on sale of capital assets
Transfer to Successor Agency
Extraordinary item:
Gain on dissolution of redevelopment agency_
Total governmental activities 19,557,164 20,229,167 19,706,584 19,386,533 22,161,009
13,858,042 13,236,962 12,545,677 14,950,579 15,722,830
(15,905,958) (16,486,455) (17,541,286) (15,088,717) (15,659,126)
9,128,934
9,566,800
9,942,183
10,740,563
10,881,809
5,929,492
5,735,491
5,430,222
5,534,244
6,889,892
2,326,863
2,314,723
1,785,219
1,405,397
2,097,700
1,313,699
1,329,822
1,346,327
1,378,550
1,594,759
210,288
1,158,407
945,319
287,628
596,871
647,888
123,924
257,314
40,151
99,978
Changes in net position
Governmental activities
Total primary government $ 3,651,206 $ 3,742,712 $ 2,165,298 $ 4,297,816 $ 6,501,883
Source: City of Rosemead, Department of Finance
117
CITY OF ROSEMEAD
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
All other governmental funds:
Nonspendable - - - - -
Restricted 2,829,147 3,110,688 3,419,068 4,005,847 4,376,257
Committed - - - - -
Assigned
Unassigned (788,224) (1,192,926) (1,643,527) (832,005) (639,510)
Total all other governmental funds 2,040,923 1,917,762 1,775,541 3,173,842 3,736,747
Source: City of Rosemead, Department of Finance.
lip]
2013
2014
2015
2016
2017
General fund:
Nonspendable
2,034
140,893
143,560
187,247
765,218
Restricted
-
-
-
-
-
Committed
6,415,416
5,883,235
6,120,361
6,682,495
6,935,525
Assigned
5,712
65,343
78,280
83,513
63,298
Unassigned
11,194, 278
11,607, 595
10,128,160
11,514,894
11, 270,958
Total general fund
17,617,440
17,697,066
16,470,361
18,468,149
19,034,999
All other governmental funds:
Nonspendable - - - - -
Restricted 2,829,147 3,110,688 3,419,068 4,005,847 4,376,257
Committed - - - - -
Assigned
Unassigned (788,224) (1,192,926) (1,643,527) (832,005) (639,510)
Total all other governmental funds 2,040,923 1,917,762 1,775,541 3,173,842 3,736,747
Source: City of Rosemead, Department of Finance.
lip]
Schedule 3
All other governmental funds:
2018
2019
2020
2021
2022
General fund:
3,554,634
8,797,389 13,681,082 21,872,184 24,948,999
Committed
1,912,732
932,813 - - -
Nonspendable
853,920
870,619
510,371
118,358
411,571
Restricted
-
-
-
-
-
Committed
8,760,289
7,667,401
8,896,317
7,985,332
10,169,989
Assigned
79,798
121,867
121,867
130,267
132,367
Unassigned
10,790, 274
14,635,070
14,679,926
17,353,655
17,842, 339
Total general fund
20,484,281
23,294,957
24,208,481
25,587,612
28,556,266
All other governmental funds:
Nonspendable
-
- - -
Restricted
3,554,634
8,797,389 13,681,082 21,872,184 24,948,999
Committed
1,912,732
932,813 - - -
Assigned
-
-
Unassigned
(31,024)
(23,792) (269,560) (89,573) (110,157)
Total all other governmental funds
5,436,342
9,706,410 13,411,522 21,782,611 24,838,842
Source: City of Rosemead, Department of Finance.
M01
CITY OF ROSEMEAD
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Expenditures
2013
2014
2015
2016
2017
Revenues:
Taxes
16,602,329
15,320,806
15,537,262
16,491,447
17,447,510
Intergovernmental
7,372,878
6,948,479
7,092,141
7,734,995
6,726,279
Licenses and permits
1,156,968
1,308,482
1,846,997
2,520,937
2,754,881
Charges for services
1,036,563
1,087,091
1,138,731
1,191,275
1,012,557
Fines, forfeitures and penalties
691,548
700,126
676,830
597,373
607,754
Development participation
-
-
-
-
-
Investment income
474,970
873,631
754,865
1,002,835
666,968
Other
928,596
61,690
114,074
71,152
231,545
Total revenues
28,263,852
26,300,305
27,160,900
29,610,014
29,447,494
Expenditures
Current:
General government
3,988,156
3,973,364
3,879,122
3,664,633
4,280,825
Public safety
7,773,611
7,913,659
8,156,485
8,452,932
9,060,840
Public works
6,909,471
6,184,890
6,348,101
6,346,179
6,499,220
Community development
2,605,654
2,846,112
3,150,240
3,323,933
3,385,455
Parks and recreation
2,208,564
2,157,424
2,071,443
2,123,274
2,300,906
Capital outlay
3,126,669
3,268,391
4,924,435
2,302,974
2,790,493
Debt service:
Principal
-
-
-
-
-
Interest and fiscal charges
-
-
-
-
-
Total expenditures
26,612,125
26,343,840
28,529,826
26,213,925
28,317,739
Excess (deficiency) of
revenues over (under)
expenditures
1,651,727
(43,535)
(1,368,926)
3,396,089
1,129,755
Other financing sources (uses):
Transfers in
Transfers out
Capital leases
Transfer to Successor Agency
Total otherfinancing
sources (uses)
Extraordinary item:
Gain (loss) on dissolution of
redevelopment agency
Net change in Lund balances
Debt service as a percentage of
noncapital expenditures
2,772,415 3,053,605 2,433,974 1,386,471 2,442,441
(2,772,415) (3,053,605) (2,433,974) (1,386,471) (2,442,441)
(6,392,878) - - - -
(4,741,151) (43,535) (1,368,926) 3,396,089 1,129,755
0.0% 0.0% 0.0% 0.0% 0.0%
Note: The information on this page has not been adjusted for any restatements of prior year financial statements.
Source: City of Rosemead, Department of Finance.
120
Revenues:
Taxes
Intergovernmental
Licenses and permits
Charges for services
Fines, forfeitures and penalties
Development participation
Investment income
Other
Total revenues
Expenditures
Current:
General government
Public safety
Public works
Community development
Parks and recreation
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) of
revenues over (under)
expenditures
Otherfinancing sources (uses):
Transfers in
Transfers out
Capital leases
Transfer to Successor Agency
Total other financing
sources (uses)
Extraordinary item:
Gain (loss) on dissolution of
redevelopment agency
Net change in tuna balances
Debt service as a percentage of
noncapital expenditures
Schedule 4
2018 2019 2020 2021 2022
18,698,988
18,946,836
18,503,951
19,082,069
21,470,510
8,002,636
8,588,211
8,179,055
11,041,044
10,582,249
3,128,000
2,636,026
2,115,419
2,492,893
3,332,016
1,572,266
1,653,095
1,204,638
489,269
1,247,997
633,711
622,221
612,080
598,032
577,616
28,591
117,115
150,728
78,558
114,662
210,288
1,158,407
905,039
778,295
369,785
566,338
250,364
271,515
63,684
84,050
32,840,818
33,972,275
31,942,425
34,623,844
37,778,885
4,546,789
4,077,516
3,768,562
4,587,158
5,477,022
9,318,858
9,089,645
9,577,867
10,574,620
10,978,236
6,554,648
7,247,391
7,032,609
7,098,823
7,512,480
3,279,088
3,637,692
3,352,332
3,349,209
3,147,029
2,386,463
2,343,452
2,703,857
1,706,997
2,427,999
3,606,095
495,838
888,559
941,577
2,389,245
29,691,941
26,891,534
27,323,786
28,258,384
31,932,011
3,148,877 7,080,741 4,618,639 6,365,460 5,846,874
121,361
(121,361)
178,011
- - - - 178,011
3,148,877 7,080,741 4,618,639 6,365,460 6,024,885
0.0% 0.0% 0.0% 0.0% 0.0%
Note: The information on this page has not been adjusted for any restatements of prior year financial statements.
Source: City of Rosemead, Department of Finance.
121
CITY OF ROSEMEAD Schedules
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
lin thousands of dollars)
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
122
City
Fiscal Year
Ended
SBE Non-
Taxable
Total Direct
June 30
Secured
Unsecured
Unitary
Assessed Value
Tax Rate
2013
3,531,097,436
68,996,223
3,301,527
3,603,395,186
22.11%
2014
3,654,495,783
68,912,542
1,901,995
3,725,310,320
9.27%
2015
3,806,028,086
71,498,360
1,901,995
3,879,428,441
9.27%
2016
4,012,426,717
62,768,733
1,901,995
4,077,097,445
9.27%
2017
4,202,108,491
63,820,415
2,051,995
4,267,980,901
9.27%
2018
4,375,810,412
60,507,061
2,051,995
4,438,369,468
9.27%
2019
4,591,020,006
63,704,447
2,051,995
4,656,776,448
9.28%
2020
4,809,362,427
71,764,032
2,347,932
4,883,474,391
9.28%
2021
5,038,058,045
72,031,236
2,408,307
5,112,497,588
9.28%
2022
5,162,438,824
71,444,546
2,408,307
5,236,291,677
0.00%
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
122
CITY OF ROSEMEAD
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
(Rate per $100 of Taxable Value)
Basic Levy"
EI Monte City School District
EI Monte Union High School
Garvey School District
Garvey -Alhambra
Los Angeles Community College District
Metropolitan Water District
Montebello Unified School District
Pasadena Community College District
Rio Hondo Community College District
Rosemead School District
San Gabriel Unified School District
Total Direct & Overlapping' Tax Rates
City's Share of 1% Levy Per Prop 13'
Voter Approved City Debt Rate
Redevelopment Rate
Total Direct Rate s
Schedule 6
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
0.0000
0.0000
0.1182
0.1464
0.1468
0.1462
0.1458
0.1080
0.0751
0.0799
0.0899
0.0980
0.0842
0.0916
0.0847
0.0824
0.0879
0.1097
0.0929
0.0765
0.0604
0.0598
0.0595
0.0587
0.0607
0.0833
0.0871
0.0862
0.0843
0.0884
0.0280
0.0315
0.0291
0.0291
0.0281
0.0481
0.0454
0.0366
0.0381
0.0299
0.0488
0.0445
0.0402
0.0358
0.0360
0.0460
0.0462
0.0272
0.0402
0.0438
0.0180
0.0180
0.0180
0.0180
0.0230
0.0300
0.0300
0.0300
0.0300
0.0300
0.0963
0.0946
0.0875
0.0872
0.1471
0.1351
0.1392
0.0931
0.0971
0.0903
0.0206
0.0190
0.0103
0.0087
0.0089
0.0082
0.0077
0.0072
0.0055
0.0090
0.0000
0.0000
0.0282
0.0271
0.0281
0.0275
0.0255
0.0257
0.0136
0.0153
0.1024
0.1031
0.0989
0.1000
0.0853
0.1198
0.0926
0.0868
0.0746
0.1018
0.1052
0.1008
0.1144
0.1068
0.1053
0.1008
0.1056
0.0968
0.0986
0.1019
1.5695
1.5694
1.6885
1.7093
1.7539
1.8273
1.8130
1.7073
1.6500
1.6662
0.0939
0.0939
0.0939
0.0939
0.0939
0.0939
0.0939
0.0939
0.0939
0.0939
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.2211
0.0927
0.0927
0.0927
0.0927
0.0927
0.0928
0.0928
0.0928
0.0928
Notes:
'In 1978, California voters passed Proposition 13 which set the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing
agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage
of assessed property values for the payment of any voter approved bonds.
Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all
city property owners.
3 City's share of 1% Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the city. ERAF
general fund tax shifts may not be included in tax ratio figures.
' RDA rate is based on the largest RDA tax rate area (TRA) and includes only rate(s) from indebtedness adopted prior to 1989 per California State
statute. RDA direct and overlapping rates are applied only to the incremental property values. The approval of ABX126 eliminated
Redevelopment from the State of California for the fiscal year 2012-13 and years thereafter.
S Total Direct Rate is the weighted average of all individual direct rates applied by the government prepaing the statistical section information and
excludes revenues derived from aircraft Beginning in 2013/14 the Total Direct Rate no longer includes revenue generated from the former
redevelopment tax rate areas. Challenges to recognized enforceable obligations are assumed to have been resolved during 2012/13. For the
purposes of this report, residual revenue is assumed to be distributed to the City in the same proportions as general fund revenue.
Source: Los Angeles County Assessor 2012/13 - 2021/22 Combined Tax Rolls and HDL Coren & Cone
123
CITY OF ROSEMEAD
Principal Property Tax Payers
Current Year and Ten Years Ago
Rosemead Place, LLC
Walmart Real Estate Business Trust
Rosemead Hwang LLC
AFG Investment Fund 5 LLC
WEST MEADOW HEALTH HOLDINGS
Sunshine Inn
Metodo Investments LLC
420 Boyd Street LLC
Panda Restaurant Group Inc
Macy's California Inc
Shurl and Kay Curd Foundation
2022
16,179,100 10 0.31%
Schedule 7
2013
10
Percent of
18,498,227
5
Total City
Taxable
6
Taxable
Assessed
7
Assessed
Value
Rank
Value
$ 53,562,458
1
1.02%
41,499,465
2
0.79%
38,311,049
3
0.73%
28,468,458
4
0.54%
25,068,082
5
0.48%
21,646,563
6
0.41%
20,378,944
7
0.39%
20,121,376
8
0.38%
17,367,293
9
0.33%
16,179,100 10 0.31%
Schedule 7
2013
10,559,863
10
Percent of
18,498,227
5
Total City
Taxable
6
Taxable
Assessed
7
Assessed
Value
Rank
Value
$ 46,249,013
1
1.28%
37,041,505
2
1.03%
27,825,000
3
0.77%
24,533,279
4
0.68%
10,559,863
10
0.29%
18,498,227
5
0.51%
17,000,000
6
0.47%
14,098,496
7
0.39%
13,942,680
8
0.39%
13,756,316
9
0.38%
Source: Los Angeles County Assessor Combined Tax Rolls and SBE Non Unitary Tax Roll for 2012/13 and 2021/22 and Hdl Coren & Cone
124
CITY OF ROSEMEAD
Property Tax Levies and Collections
Last Ten Fiscal Years
Schedule 8
Collected within the
Fiscal Year Taxes Levied Fiscal Year of Levy Collections in Total Collections to Date
Ended for the Fiscal Percent Subsequent Percent
June 30 Year Amount of Levy Years Amount of Levy
2013
2,771,913
2,710,893
97.80%
2014
2,865,651
2,850,674
99.48%
2015
2,981,810
2,935,129
98.43%
2016
3,134,303
3,114,233
99.36%
2017
3,187,187
2,632,109
82.58%
2018
3,336,547
2,878,054
86.26%
2019
3,489,499
3,008,322
86.21%
2020
3,675,962
3,064,430
83.36%
2021
3,847,941
2,812,253
73.08%
2022
3,928,815
2,862,513
72.86%
* Information
not available.
Source: Los Angeles County Auditor Controller's Office
125
- 2,710,893
97.80%
- 2,850,674
99.48%
- 2,935,129
98.43%
- 3,114,233
99.36%
- 2,632,109
82.58%
- 2,878,054
86.26%
- 3,008,322
86.21%
- 3,064,430
83.36%
- 2,812,253
73.08%
- 2,862,513
72.86%
CITY OF ROSEMEAD
Schedule 9
Direct and Overlapping Governmental Activities
Debt
June 30, 2022
Percentage
Amount
Applicable To
Applicable to
Gross Bonded
City of
City of
Debt Balance
Rosemead
Rosemead
Overlapping Debt
* Metropolitan Water District
$ 9,835,780
0.317%
31,150
Garvey SD DS 2000 SERIES B
4,745,300
50.660%
2,403,979
Garvey SD DS 2004 Series 2006
6,377,081
50.660%
3,230,642
Garvey SD DS 2004 SERIES C
8,030,320
50.660%
4,068,176
Garvey SD DS 2011 REFUND BONDS
1,840,000
50.660%
932,148
Garvey SD DS 2014 Ref Bonds
1,370,000
50.660%
694,045
Garvey SD DS 2016 Series A
8,700,000
50.660%
4,407,438
Garvey SD DS 2016 Series B
9,015,000
50.660%
4,567,017
Garvey SD DS 2016 Series C
8,740,000
50.660%
4,427,702
Rosemead SD DS 2012 Ref Bonds
5,010,000
67.611%
3,387,289
Rosemead SD DS 2008 Series B
187,308
67.611%
126,640
Rosemead SD DS 2014 Ref Bonds
4,855,000
67.611%
3,282,493
Rosemead SD DS 2016 Ref Bonds
11,130,000
67.611%
7,525,055
Rosemead SD DS 2008 Series C
1,800,000
67.611%
1,216,990
Rosemead SD DS 2014 Series A
7,200,000
67.611%
4,867,960
Rosemead SD DS 2019 Ref Bonds Series A
11,255,000
67.611%
7,609,568
Rosemead SD DS 2014 Series B
15,840,000
67.611%
10,709,512
EI Monte Union HSD DS 2008 Series B
29,117,830
13.900%
4,047,382
EI Monte Union HSD DS 2015 Ref Bonds
10,200,000
13.900%
1,417,801
EI Monte Union HSD DS 2008 Series C
47,225,000
13.900%
6,564,281
EI Monte Union HSD DS 2016 Ref Bonds
9,970,098
13.900%
1,385,845
EI Monte Union HSD DS 2008 Series D
44,005,000
13.900%
6,116,701
EI Monte Union HSD DS 2018 Series A
100,711,221
13.900%
13,998,872
LA CCD DS 2003, Taxable Series 20048
2,115,000
0.283%
5,994
LA CCD DS 2001, Taxable Series 2004A
31,555,000
0.283%
89,423
LA CCD DS 2008, 2009 Taxable Ser B
75,000,000
0.283%
212,541
LA CCD DS 2008, 2010 Tax Ser D
125,000,000
0.283%
354,235
LA CCD Debt 2008, 2010 Tax Ser E (BABS)
900,000,000
0.283%
2,550,493
LA CCD DS 2013
13,000,000
0.283%
36,840
LA CCD DS 2013 Ref Bonds
8,380,000
0.283%
23,748
LA CCD DS 2008 Series G
30,765,000
0.283%
87,184
LA CCD DS 2015 Ref Series A
144,260,000
0.283%
408,816
LA CCD DS 2015 Ref Series B
14,965,000
0.283%
42,409
LA CCD DS 2015 Ref Series C
178,565,000
0.283%
506,032
LA CCD DS 2008 Series 1
184,220,000
0.283%
522,057
LA CCD DS 2008 Series 1
173,020,000
0.283%
490,318
LA CCD DS 2016 Ref Bonds
239,880,000
0.283%
679,791
LA CCD DS 2020 Ref Bonds
1,750,350,000
0.283%
4,960,283
LA CCD DS 2016 Series C
275,440,000
0.283%
780,564
Pasadena CCD DS 2014 Ref Series A
9,280,000
2.351%
218,198
Pasadena CCD DS 2016 Ref Series A
27,435,000
2.351%
645,073
Pasadena CCD DS 202020 Ref
21,950,000
2.351%
516,105
Montebello USD DS 1998 Series 1998
1,352,514
1.575%
21,299
Montebello USD DS 1998 Series 1999
1,659,946
1.575%
26,140
Montebello USD DS 1998 Series 2001
2,156,550
1.575%
33,961
126
CITY OF ROSEMEAD
Direct and Overlapping Governmental Activities Debt
June 30, 2022
Schedule 9
Amount
Applicable to
City of
Rosemead
71,022
58,004
217,555
394,717
192,122
1,441,231
97,649
2,963
131,987
1,878
718,158
Total Overlapping Debt 113,557,476
2021/22 Assessed Valuation: $4,312,048.39 After Deducting $924,243,328 Incremental Value.
Debt to Assessed Valutation Ratios:
Direct Debt 0.00%
Overlapping Debt 2.63%
Total Debt 2.63%
* This fund is a portion of a larger agency, and is responsible for debt in areas outside the city.
This report reflects debt which is being repaid through voter -approved property tax indebtedness. It excludes mortgage
revenue, tax allocation bonds, interim financing obligations, non -bonded capital lease obligations, and certificates of
participation, unless provided by the city.
Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the city. The
percentage of overlapping debt applicable is estimated by using taxable assessed values. Applicable percentages were
estimated by determining the portion of another governmental unit's taxable assessed value that is within the city's
boundaries and dividing it by each unit's total taxable assessed value.
Source: Hdl Coren & Cone, L.A. County Assessor and Auditor Combined 2021/22 Lien Date Tax Rolls.
127
Percentage
Applicable To
Gross Bonded
City of
Debt Balance
Rosemead
Montebello USD DS 1998 Series 2004
4,509,982
1.575%
Montebello USD DS 1998 Series 2002
3,683,332
1.575%
Montebello USD DS Ref 2004 Series 2013A
13,815,000
1.575%
Montebello USD DS Ref Bond Series 2015
25,055,000
1.575%
Montebello USD DS Ref Bonds 2016 Series A
12,200,000
1.575%
Montebello USD DS 2016 Series A
91,520,000
1.575%
San Gabriel USD DS 2010 Ref Bonds
8,404,370
1.162%
San Gabriel USD DS 2008 Series B
255,000
1.162%
San Gabriel USD DS 2012 Ref Bond Series B
11,359,745
1.162%
San Gabriel USD DS 2008 Series C
161,636
1.162%
San Gabriel USD DS 2015 Ref Bond Series A
61,810,000
1.162%
Schedule 9
Amount
Applicable to
City of
Rosemead
71,022
58,004
217,555
394,717
192,122
1,441,231
97,649
2,963
131,987
1,878
718,158
Total Overlapping Debt 113,557,476
2021/22 Assessed Valuation: $4,312,048.39 After Deducting $924,243,328 Incremental Value.
Debt to Assessed Valutation Ratios:
Direct Debt 0.00%
Overlapping Debt 2.63%
Total Debt 2.63%
* This fund is a portion of a larger agency, and is responsible for debt in areas outside the city.
This report reflects debt which is being repaid through voter -approved property tax indebtedness. It excludes mortgage
revenue, tax allocation bonds, interim financing obligations, non -bonded capital lease obligations, and certificates of
participation, unless provided by the city.
Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the city. The
percentage of overlapping debt applicable is estimated by using taxable assessed values. Applicable percentages were
estimated by determining the portion of another governmental unit's taxable assessed value that is within the city's
boundaries and dividing it by each unit's total taxable assessed value.
Source: Hdl Coren & Cone, L.A. County Assessor and Auditor Combined 2021/22 Lien Date Tax Rolls.
127
CITY OF ROSEMEAD
Legal Debt Margin Information
Last Ten Fiscal Years
2012-13 2013-14 2014-15 2015-16 2016-17
Assessed valuation 3,603,395,186 3,725,310,320 3,879,248,441 4,077,097,445 4,337,892,775
Conversion percentage 25% 25% 25% 25% 25%
Adjusted assessed valuation 900,848,797 931,327,580 969,812,110 1,019,274,361 1,084,473,194
Debt limit percentage 15% 15% 15% 15% 15%
Debt limit 135,127,319 139,699,137 145,471,817 152,891,154 162,670,979
Total net debt applicable to limit:
General obligation bonds - - - - -
Legal debt margin 135,127,319 139,699,137 145,471,817 152,891,154 162,670,979
Total debt applicable to the limit
as a percentage of debt limit 0.0% 0.0% 0.0% 0.0% 0.0°%
The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this
provision was enacted when assessed valuation was based upon 25% of market value. Effective with the 1981-82 fiscal year,
each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The
computations shown above reflect a conversion of assessed valuation data for each fiscal year from the current full valuation
perspective to the 25% level that was in effect at the time that the legal debt margin was enacted by the State of California for
local governments located within the state.
Source: Rosemead Finance Department
Los Angeles County Tax Assessor's Office
128
Assessed valuation
Conversion percentage
Adjusted assessed valuation
Debt limit percentage
Debt limit
Total net debt applicable to limit:
General obligation bonds
Legal debt margin
Total debt applicable to the limit
as a percentage of debt limit
Schedule 10
2017-18
2018-19
2019-20
2020-21
2021-22
4,525,131,407
25%
4,745,176,577
25%
4,960,200,386
25%
5,175,006,979
25%
5,306,456,661
25%
1,131,282,852
15%
1,186,294,144
15%
1,240,050,097
15%
1,293,751,745
15%
1,326,614,165
15%
169,692,428
177,944,122
186,007,514
194,062,762
198,992,125
169,692,428
177,944,122
186,007,514
194,062,762
198,992,125
0.0% 0.0°% 0.0% 0.0% 0.0%
Source: Rosemead Finance Department
Los Angeles County Tax Assessor's Office
129
CITY OF ROSEMEAD
Pledged -Revenue Coverage
Last Ten Fiscal Years
Schedule 11
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
130
Tax Allocation Bonds
Fiscal Year
Ended
Tax
Debt Service
June 30
Increment
Principal
Interest
Coverage
2013
5,439,677
1,795,000
1,852,123
1.49
2014
5,517,943
1,855,000
1,790,511
1.51
2015
5,521,038
1,920,000
1,718,573
1.52
2016
5,724,292
1,995,000
1,635,578
1.58
2017
4,711,788
850,000
1,602,713
1.92
2018
3,916,792
2,320,000
1,386,038
1.06
2019
31863,435
2,160,000
1,352,881
1.10
2020
31634,145
2,205,000
1,229,000
1.06
2021
41204,501
2,295,000
1,126, 375
1.23
2022
41072,385
2,405,000
1,010,125
1.19
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
130
CITY OF ROSEMEAD
Demographic and Economic Statistics
Last Ten Calendar Years
Schedule 12
Fiscal Year
Population 11
Personal Income
(in thousands) '
Per Capita Personal
Income
Unemployment
Rate iii
Median Age (3)
2012-13
54,464
959,982
17,626
8.10%
38.8
2013-14
54,762
944,918
17,255
6.70%
38.8
2014-15
54,786
956,180
17,453
9.50%
39.7
2015-16
55,231
932,800
16,889
7.70%
40.4
2016-17
54,984
960,740
17,473
6.10%
40.5
2017-18
55,267
972,350
17,594
4.30%
40.7
2018-19
55,097
1,040,232
18,880
4.30%
41.5
2019-20
54,363
1,084,896
19,956
4.20%
41.4
2020-21
54,229
1,175,005
21,667
16.20%
41.9
2021-22
50,511
1,181,679
23,394
9.30%
41.3
Sources: ')California State Department of Finance
ZI US Census Data
3) California Employment Development Department
Compilied by HdL, Coren & Cone
131
CITY OF ROSEMEAD
Principal Employers
Current Year and Ten Years Ago
2022
2013
Schedule 13
Percent of Percent of
Number of Total Number of Total
Employer Employees Rank Employment' Employees Rank Employment'
Southern California Edison
2722
1
11.78%
4100
1
17.60%
Garvey School District
859
2
3.72%
804
2
3.45%
Panda Restaurant Group, Inc.
647
3
2.80%
400
4
1.72%
Wal-Mart
583
4
2.52%
420
3
1.80%
Rosemead School District
329
5
1.42%
337
5
1.45%
Target
234
6
1.01%
200
6
0.86%
Hemetic Seal Corporation
119
7
0.52%
150
7
0.64%
Lucille's
103
8
0.45%
-
-
University of the West
102
9
0.44%
-
-
-
Don Bosco Tech
96
10
0.42%
90
9
0.39%
Olive Garden
0
-
150
8
0.64%
DoubleTree
-
-
76
10
0.33%
1 Based upon Employment Development Department's estimate of 23,300 residents employed - June 2013
' Based upon Employment Development Department's estimate of 23,100 residents employed - June 2022
Disclaimer: The City of Rosemead makes no claims concerning the accuracy of data provided nor assumes
any liability resulting from the use of information herein.
Source: City of Rosemead
132
CITY OF ROSEMEAD
Top 25 Sales Tax Producers
Current Year and Ten Years Ago
2022 2013
Schedule 14
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
Altec Industries
Heavy Industrial
AutoZone
Automotive Supply Stores
Beacon Roofing Supply
Buiding Material
Bed Bath & Beyond
Home Furnishings
Boiling Crab
Casual Dining
Carrows
Casual Dining
Circle K
Service Stations
CH Auto
Used Automotive Dealers
In N Out Burger
Quick-Servie Restaurants
Circle K
Service Stations
Ji Rong Peking Duck
Casual Dining
CVS Pharmacy
Drug Stores
Lucille's Smokehouse Bar -B -Qi
Casual Dining
Dunn Edwards Paint
Paint/Glass/Wallpaper
Macy
Department Store
East Gourmet Seafood
Casual Dining
Macy
Department Store
Huy Fong Foods
Food Service Equip./Supplies
McDonalds
Quick-Servie Restaurants
In N Out Burger
Quick -Service Resturants
McDonalds
Quick-Servie Restaurants
Jims Burgers
Quick -Service Resturants
Nailis Supply
Specialty Stores
Macys
Department Stores
Olive Garden
Casual Dining
Mc Donalds
Quick -Service Resturants
Panda Express
Fast -Casual Restaurants
Mc Donalds
Quick -Service Resturants
Rosemead Valley Mart Mobil
Service Stations
Rosemead Mobil
Service Stations
Rosee
Family Apparel
Rosemead Valley Mart Mobil
Service Stations
Shell
Service Stations
Sea Harbour Seafood
Casual Dining
Sunshine Seafood
Casual Dining
Shell
Service Stations
T Mobile
Electronics/Appliance Stores
Solar Warehouse
Energy/Utilities
Target
Discount Dept Stores
T Mobile
Electronics/Appliance Stores
Ulta Beauty
Specialty Stores
Target
Discount Dept Stores
Walmart Supercenter
Discount Dept Stores
TGI Fridays
Casual Dining
Well Auto
Used Automotive Dealers
Walmart Supercenter
Discount Dept Stores
Firms Listed Alphabetically
Source: State Board of Equalization, California Department of Taxes and Fees Administration, State Controller's Office, The HdL Companies
133
CITY OF ROSEMEAD Schedule 15
Full-time City Positions by Function
Last Ten Fiscal Years
Function 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
General government
10
10
11
12
12
12
13
14
15
19
Public safety'
7
7
6
6
7
7
3
3
8
8
Community
development
6
6
6
7
7
7
10
11
6
5
Public works
20
20
20
20
20
21
23
23
21
21
Parks and recreation
10
10
10
8
9
9
8
9
8
8
Total 53 53 53 53 55 56 57 60 58 61
The 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.
Source: City of Rosemead, Finance Department
134
CITY OF ROSEMEAD
Operating Indicators by Function
Last Ten Fiscal Years
Police
Schedule 16
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Arrests
1,186
1,356
1,585
1,339
1,046
1,256
1,817
2,649
2,966
1,404
Parking citations issued
8,765
16,110
7,863
8,047
7,676
8,086
6,244
7,898
9,472
7,725
Fire:
Number of emergency calls
2,785
2,823
3,212
3,352
3,206
3,822
2,823
2,789
2,803
3,588
Inspections
2,012
2,026
2,793
2,564
2,311
2,430
2,288
2,267
2,256
2,132
Public works:
Street resurfacing (miles)
0.90
1.60
0.55
1.00
0.70
0.80
1.00
0
0
4.6
Parks and recreation:
Number of recreation classes
638
724
839
871
873
707
631
387
210
491
Number of facility rentals
3,124
4,005
2,607
3,070
6,226
3,679
2,508
2,387
1,244
2,797
Source: City of Rosemead
135
CITY OF ROSEMEAD
Capital Asset Statistics by Function
Last Ten Fiscal Years
Schedule 17
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
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
Streets (miles)
77.6
77.6
77.6
81.9
81.9
81.8
81.8
81.8
81.8
81.8
Streetlights
2,712
2,712
2,712
2,712
2,712
2,511
2,511
2,511
2,511
2,684
Traffic signals
42
42
42
41
42
42
42
42
42
43
Parks and recreation:
Parks
10
10
10
10
10
11
12
12
12
12
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
ibil
Attachment B
Auditors' Letter to Mayor and City Council
for Year Ended June 30, 2022
LS Lo' so
December 16, 2022
To the Honorable Mayor and Members of the City Council
City of Rosemead, California
We have audited the financial statements of the governmental activities, each major fund, and the
aggregate remaining fund information of the City of Rosemead, California (the City) for the year ended
June 30, 2022. Professional standards require that we provide you with information about our
responsibilities under generally accepted auditing standards, Government Auditing Standards, and the
Uniform Guidance, as well as certain information related to the planned scope and timing of our audit. We
have communicated such information in our letter to you dated April 19, 2022. Professional standards also
require that we communicate to you the following information related to our audit.
Significant Audit Matters
Qualitative Aspects of Significant Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant
accounting policies used by the City are described in Note 1 to the financial statements. As described in
Note 1 to the financial statements, the City changed accounting policies related to accounting for leases by
adopting Statement of Governmental Accounting Standards (GASB Statement) No. 87, Leases, in the fiscal
year ended June 30, 2022. Accordingly, the cumulative effect of the accounting change as of the beginning
of the year is reported in the Statement of Revenues, Expenses, and Changes in Net Position. We noted
no transactions entered into by the City during the year for which there is a lack of authoritative guidance
or consensus. All significant transactions have been recognized in the financial statements in the proper
period.
Accounting estimates are an integral part of the financial statements prepared by management and are
based on management's knowledge and experience about past and current events and assumptions about
future events. Certain accounting estimates are particularly sensitive because of their significance to the
financial statements and because of the possibility that future events affecting them may differ significantly
from those expected. The most sensitive estimate affecting the City's financial statements was:
Management's estimates of its net pension liability/asset and other post -employment
benefits (OPEB) liability, are based on actuarial valuation specialist assumptions. We
evaluated the key factors and assumptions used to develop the net pension liability/asset
and OPEB liability in determining that they are reasonable in relation to the financial
statements taken as a whole.
Certain financial statement disclosures are particularly sensitive because of their significance to financial
statement users. The financial statement disclosures are neutral, consistent, and clear
Significant or Unusual Transactions
Management is responsible for the policies and practices used to account for significant or unusual
transactions. No significant unusual transactions have occurred during fiscal year 2021-2022.
PrimeGlobal
LSL4p:::
To the Honorable Mayor and Members of the City Council
City of Rosemead, California
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our
audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the
audit, other than those that are trivial, and communicate them to the appropriate level of management. We
are pleased to report that no such misstatements were identified during the course of our audit.
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing
matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or
the auditor's report. We are pleased to report that no such disagreements arose during the course of our
audit.
Management Representations
We have requested certain representations from management that are included in the management
representation letter dated December 16, 2022.
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting
matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application
of an accounting principle to the City's financial statements or a determination of the type of auditor's opinion
that may be expressed on those statements, our professional standards require the consulting accountant
to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were
no such consultations with other accountants.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the significant events or transactions that occurred
during the year, business conditions affecting the City and business plans and strategies that may affect
the risks of material misstatements, the application of accounting principles and auditing standards, with
management each year prior to retention as the City's auditors. However, these discussions occurred in
the normal course of our professional relationship and our responses were not a condition to our retention.
Other Matters
We applied certain limited procedures to the management's discussion and analysis, the budgetary
comparison schedules for the general fund and major special revenue funds; the schedule of proportionate
share of the net pension liability, the schedules of plan contributions, and the schedule of changes in net
other post -employment benefits (OPEB) liability and the related ratio, which are required supplementary
information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of
management regarding the methods of preparing the information and comparing the information for
consistency with management's responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do
not express an opinion or provide any assurance on the RSI.
LS L••• 00
•
To the Honorable Mayor and Members of the City Council
City of Rosemead, California
We were engaged to report on the combining and individual fund statements and schedules, which
accompany the financial statements but are not RSI. With respect to this supplementary information, we
made certain inquiries of management and evaluated the form, content, and methods of preparing the
information to determine that the information complies with accounting principles generally accepted in the
United States of America, the method of preparing it has not changed from the prior period, and the
information is appropriate and complete in relation to our audit of the financial statements. We compared
and reconciled the supplementary information to the underlying accounting records used to prepare the
financial statements or to the financial statements themselves.
We were not engaged to report on the introductory or statistical sections, which accompany the financial
statements but are not RSI. Such information has not been subjected to the auditing procedures applied in
the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any
assurance on it.
The following new Governmental Accounting Standards Board (GASB) pronouncements were effective for
fiscal year 2021-2022 audit:
GASB Statement No. 87. Leases.
GASB Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction
Period.
GASB Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting
for Internal Revenue Code Section 457 Deferred Compensation Plans.
The following GASB pronouncements are effective in the following fiscal years' audits and should be
reviewed for proper implementation by management:
Fiscal year 2023
GASB Statement No. 91, Conduit Debt Obligations.
GASB Statement No. 94, Public -Private and Public -Public Partnerships and Availability Payment
Arrangement.
GASB Statement No. 96, Subscription -Based Information Technology Arrangements.
Fiscal year 2024
GASB Statement No. 99, Omnibus 2022.
GASB Statement No. 100, Accounting Changes and Error Corrections.
Fiscal year 2025
GASB Statement No. 101, Compensated Absences.
LS L•••00
•
To the Honorable Mayor and Members of the City Council
City of Rosemead, California
Restriction on Use
This information is intended solely for the use of City Council and management of the City of Rosemead
and is not intended to be, and should not be, used by anyone other than these specified parties.
Very truly yours, / yoQ
'�4
Brea, California
Attachment C
Independent Auditors' Report on Internal
Control over Financial Reporting
LSL:o'�'
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL
OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENTAUDITING STANDARDS
To the Honorable Mayor and Members of the City Council
City of Rosemead, California
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States, the financial statements of the governmental
activities, each major fund, and the aggregate remaining fund information of the City of Rosemead,
California (the City), as of and for the year ended June 30, 2022, and the related notes to the financial
statements, which collectively comprise the City's basic financial statements, and have issued our report
thereon dated December 16, 2022.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City's internal control
over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in
the circumstances for the purpose of expressing our opinions on the financial statements, but not for the
purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not
express an opinion on the effectiveness of the City's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management
or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,
misstatements, on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in
internal control, such that there is a reasonable possibility that a material misstatement of the entity's
financial statements will not be prevented, or detected and corrected, on a timely basis. A significant
deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a
material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses
or significant deficiencies may exist that were not identified.
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on the
financial statements. However, providing an opinion on compliance with those provisions was not an
objective of our audit, and accordingly, we do not express such an opinion. The results of our tests
disclosed no instances of noncompliance or other matters that are required to be reported under
Govemment Auditing Standards.
Pri"Global
L L•••Oo•
To the Honorable Mayor and Members of the City Council
City of Rosemead, California
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control
or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the City's internal control and compliance. Accordingly,
this communication is not suitable for any other purpose.
4 ,/�
Brea, California
December 16, 2022
Attachment D
Report on Agreed -Upon Procedures Applied
to Appropriations Limit
LIS Le* 0'
INDEPENDENT ACCOUNTANTS' REPORT ON AGREED-UPON
PROCEDURES APPLIED TO APPROPRIATIONS LIMIT WORKSHEETS
To the Honorable Mayor and Members of the City Council
City of Rosemead, California
We have performed the procedures enumerated below on the accompanying Appropriations Limit
Worksheet No. 6 (or other alternative computation) of the City of Rosemead, California (the "City'), for the
year ended June 30, 2022. These procedures are the responsibility of the City, which were agreed to by
the City and the League of California Cities (as presented in the publication entitled Agreed -Upon
Procedures Applied to the Appropriations Limitation Prescribed by Article XIII -B of the
California Constitution), were performed solely to assist the City in meeting the requirements of
Section 1.5 of Article XIII -B of the California Constitution. The City's management is responsible for the
Appropriations Limit Worksheet No. 6 (or other alternative computation).
The City has agreed to and acknowledged that the procedures performed are appropriate to meet the
intended purpose of recomputing the Appropriations Limit Worksheet No. 6 (or other alternative
computation). This report may not be suitable for any other purpose. The procedures performed may not
address all the items of interest to a user of this report and may not meet the needs of all users of this
report and, as such, users are responsible for determining whether the procedures performed are
appropriate for their purposes.
The procedures performed and our findings were as follows:
1. We obtained the completed Worksheets No. 1 through No. 7 (or other alternative computations) and
compared the limit and annual adjustment factors included in those worksheets to the limit and
annual adjustment factors that were adopted by resolution of the City Council. We also compared the
population and inflation options included in the aforementioned worksheets to those that were
selected by a recorded vote of the City Council.
Finding: No exceptions were noted as a result of our procedures.
2. For the accompanying Appropriations Limit Worksheet No. 6, we multiplied line A, last year's limit, by
line D, ratio of change and compared the resulting amount to line E, this year's limit.
Finding: No exceptions were noted as a result of our procedures.
3. We compared the current year information presented in the accompanying Appropriations Limit
Worksheet No. 6 to the other worksheets described in No. 1 above.
Finding: No exceptions were noted as a result of our procedures.
4. We compared the prior year appropriations limit presented in the accompanying Appropriations Limit
Worksheet No. 6 to the prior year appropriations limit adopted by the City Council for the prior year.
Finding: No exceptions were noted as a result of our procedures.
PrimeGlobal
LS L••• 00
•
To the Honorable Mayor and Members of the City Council
City of Rosemead, California
We were engaged by the City to perform this agreed-upon procedures engagement and conducted our
engagement in accordance with attestation standards established by the AICPA. We were not engaged
to and did not conduct an examination or review engagement, the objective of which would be the
expression of an opinion or conclusion, respectively, on the accompanying Appropriations Limit
Worksheet No. 6 (or other alternative computation). Accordingly, we do not express such an opinion or
conclusion. Had we performed additional procedures, other matters might have come to our attention that
would have been reported to you.
We are required to be independent of the City and to meet our other ethical responsibilities, in
accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.
This report is intended solely for the information of the City Council and management of the City and is
not intended to be, and should not be, used by anyone other than these specified parties.
Brea, California
June 8, 2022
CITY OF ROSEMEAD, CALIFORNIA
FISCAL YEAR 2021-2022
APPROPRIATIONS LIMIT CALCULATION
A. 2020-2021 APPROPRIATIONS LIMIT:
B. 2021-2022 CHANGE IN PER CAPITA PERONAL
INCOME:
C. 2021-2022 CITY CHANGE IN POPULATION:
D. RATIO OF CHANGE (1.0573 x 0.9956):
E. 2021-2022 APPROPRIATIONS LIMIT:
($52,227,174 x1.0526)
52,227,174
x 1.0526
1.0573
IQ:�b7.y
Attachment E
Rosemead Housing Development
Corporation Basic Financial Statements
"•'
LISL• •
ROSEMEAD HOUSING DEVELOPMENT CORPORATION
A COMPONENT UNIT OF THE CITY OF ROSEMEAD
FISCAL YEAR ENDED JUNE 30, 2022
BASIC FINANCIAL STATEMENTS
(WITH SUPPLEMENTARY INFORMATION) AND
INDEPENDENT AUDITORS' REPORT
Focused
on YOU
ROSEMEAD HOUSING
DEVELOPMENT CORPORATION
A COMPONENT UNIT OF
THE CITY OF ROSEMEAD, CALIFORNIA
BASIC FINANCIAL STATEMENTS
(WITH SUPPLEMENTARY INFORMATION)
AND
INDEPENDENT AUDITORS' REPORT
FOR THE YEAR ENDED
JUNE 30, 2022
ROSEMEAD HOUSING
DEVELOPMENT CORPORATION
A COMPONENT UNIT OF
THE CITY OF ROSEMEAD, CALIFORNIA
BASIC FINANCIAL STATEMENTS
(WITH SUPPLEMENTARY INFORMATION)
AND
INDEPENDENT AUDITORS' REPORT
FOR THE YEAR ENDED
JUNE 30. 2022
TABLE OF CONTENTS
Page
Number
INDEPENDENT AUDITORS' REPORT..................................................................................................1
BASIC FINANCIAL STATEMENTS
Statementsof Net Position...............................................................................................................4
Statementsof Activities....................................................................................................................5
BalanceSheet..................................................................................................................................6
Reconciliation of the Balance Sheet of Governmental Fund
to the Statement of Net Position.......................................................................................................7
Statement of Revenues, Expenditures and Changes in Fund Balance...........................................8
Reconciliation of the Statement of Revenues, Expenditures, and
Changes in Fund Balance of Governmental Fund to the
Statementof Activities......................................................................................................................9
Notesto Financial Statements........................................................................................................10
REQUIRED SUPPLEMENTARY INFORMATION
Notes to Required Supplementary Information..............................................................................18
Budgetary Comparison Schedule...................................................................................................19
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS..................................................20
LS Uo
INDEPENDENT AUDITORS' REPORT
To the Board of Directors
Rosemead Housing Development Corporation
Rosemead, California
Report on the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities and General Fund
of the Rosemead Housing Development Corporation (the Corporation), a component unit of the
City of Rosemead, California (the City), as of and for the year ended June 30, 2022, and the related notes
to the financial statements, which collectively comprise the Corporation's basic financial statements as
listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities and General Fund of the Corporation, a
component unit of the City as of June 30, 2022, and the respective changes in financial position for the year
then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the
United States of America (GAAS) and the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States. Our
responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit
of the Financial Statements section of our report. We are required to be independent of the City and to meet
our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
Emphasis of Matters
As discussed in Note 1, the financial statements of the Corporation are intended to present the
governmental activities and General Fund of only that portion of the City that is attributable to the
transactions of the Corporation. They do not purport to, and do not, present fairly the financial position of
the City as of June 30, 2022, the changes in its financial position, or, where applicable, its cash flows for
the year then ended in accordance with accounting principles generally accepted in the United States of
America. Our opinion is not modified with respect to this matter.
Change in Accounting Principle
As described in Note 1 to the financial statements, in the fiscal year ended June 30, 2022, the Corporation
adopted new accounting guidance, GASB Statement No. 87, Leases. Our opinion is not modified with
respect to this matter.
PrimeGlobal
....
LS L•••00
•
To the Board of Directors
Rosemead Housing Development Corporation
City of Rosemead, California
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; and for the
design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or
events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a
going concern for twelve months beyond the date of the financial statements.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditors report that includes
our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance
and therefore is not a guarantee that an audit conducted in accordance with the GAAS and
Government Auditing Standards will always detect a material misstatement when it exists. The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control. Misstatements are considered material if, there is a substantial likelihood that, individually or in the
aggregate, they would influence the judgment made by a reasonable user based on the financial
statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, and design and perform audit procedures responsive to those risks. Such procedures
include examining, on a test basis, evidence regarding the amounts and disclosures in the financial
statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the City's internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about the City's ability to continue as a going concern for a reasonable
period of time.
We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit, significant audit findings, and certain internal control -related matters
that we identified during the audit.
LS L*:::
To the Board of Directors
Rosemead Housing Development Corporation
City of Rosemead, California
Other Reporting Responsibilities
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the budgetary
comparison schedule for the general fund be presented to supplement the basic financial statements. Such
information is the responsibility of management and, although not a part of the basic financial statements,
is required by the Governmental Accounting Standards Board, who considers it to be an essential part of
financial reporting for placing the basic financial statements in an appropriate operational, economic, or
historical context. We have applied certain limited procedures to the required supplementary information in
accordance with auditing standards generally accepted in the United States of America, which consisted of
inquiries of management about the methods of preparing the information and comparing the information for
consistency with management's responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or
provide any assurance on the information because the limited procedures do not provide us with sufficient
evidence to express an opinion or provide any assurance. Management has omitted the management's
discussion and analysis that accounting principles generally accepted in the United States of America
require to be presented to supplement the basic financial statements. Such missing information, although
not a part of the basic financial statements, is required by the Governmental Accounting Standards Board,
who considers it to be an essential part of financial reporting for placing the basic financial statements in
an appropriate operational, economic, or historical context. Our opinion on the basic financial statements
is not affected by this missing information.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
January 18, 2023, on our consideration of the City's internal control over the Corporation's financial
reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements and other matters. The purpose of that report is solely to describe the scope of our testing of
internal control over financial reporting and compliance and the results of that testing, and not to
provide an opinion on the effectiveness of the City's internal control over the Corporation's financial
reporting or on compliance. That report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the City's internal control over the Corporation's financial
reporting and compliance.
Brea, California
January 18, 2023
ROSEMEAD HOUSING DEVELOPMENT CORPORATION
A COMPONENT UNIT OF THE CITY OF ROSEMEAD, CALIFORNIA
STATEMENT OF NET POSITION
JUNE 30, 2022
Assets:
Cash and investments
Accounts receivable
Accrued interest
Due from other governments
Capital assets, net of depreciation/amortization
Total Assets
Liabilities:
Accounts payable
Deposits payable
Due to City of Rosemead
Lease payable - due within one year
Noncurrent liabilities:
Lease payable - due in more than one year
Total Liabilities
Net Position:
Net investment in capital assets
Unrestricted
Total Net Position
The notes to financial statements are an integral part of this statement.
Governmental
Activities
$ 451,655
9,552
361
216,861
11,762,087
12,440,516
7,372
42,983
197,552
183,400
5,362,017
5,793,324
6,216,670
430,522
$ 6,647,192
ROSEMEAD HOUSING DEVELOPMENT CORPORATION
A COMPONENT UNIT OF THE CITY OF ROSEMEAD, CALIFORNIA
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2022
The notes to financial statements are an integral part of this statement.
Net(Expenses)
Revenues and
Changesin
Program Revenues
Net Position
Operating Capital
Charges for Contributions Contributions
Governmental
Expenses
Services and Grants and Grants
Activities
Functions/Programs
Governmental Activities:
General Government
$ 1,126,958
$ 474,233 $ 428,978 $ -
$ (223,747)
Total Governmental Activities
$ 1,126,958
$ 474,233 $ 428,978 $
(223,747)
General Revenues:
Investment Income
7,981
Other
6,212
Total General Revenues
14,193
Change in Net Position
(209,554)
Net Position - Beginning of Year
6,856,746
Net Position - End of Year
$ 6,647,192
The notes to financial statements are an integral part of this statement.
ROSEMEAD HOUSING DEVELOPMENT CORPORATION
A COMPONENT UNIT OF THE CITY OF ROSEMEAD, CALIFORNIA
BALANCE SHEET
GOVERNMENTALFUND
JUNE 30, 2022
Assets:
Cash and investments
Accounts receivable
Accrued interest
Due from other governments
Total Assets
Liabilities and Fund Balance:
Liabilities:
Accounts payable
Deposits payable
Due to City of Rosemead
Total Liabilities
Fund Balance:
Unassigned
Total Fund Balance
Total Liabilities and Fund Balance
The notes to financial statements are an integral part of this statement.
General Fund
$ 451,655
9,552
361
216,861
$ 678,429
$ 7,372
42,983
197,552
247,907
430,522
430,522
$ 678,429
ROSEMEAD HOUSING DEVELOPMENT CORPORATION
A COMPONENT UNIT OF THE CITY OF ROSEMEAD, CALIFORNIA
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
JUNE 30, 2022
Fund balance of governmental funds
Amounts reported for governmental activities in the statement of net position are
different because:
430,522
Capital assets net of depreciation have not been included as financial resources
in governmental fund activity. 11,762,087
Long-term debt that have not been included in the governmental fund activity:
Lease payable (5,545,417)
Net Position of Governmental Activities
The notes to financial statements are an integral part of this statement.
$ 6,647,192
ROSEMEAD HOUSING DEVELOPMENT CORPORATION
A COMPONENT UNIT OF THE CITY OF ROSEMEAD, CALIFORNIA
STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE
GOVERNMENTALFUND
FOR THE YEAR ENDED JUNE 30, 2022
Revenues:
Intergovernmental
Use of money and property
Miscellaneous
Total Revenues
Expenditures:
Current:
Operating costs
Administrative services paid to City of Rosemead
Total Expenditures
Net change in fund balance
Fund Balance, Beginning of Year
Fund Balance, End of Year
The notes to the financial statements are an integral part of this statement.
General Fund
$ 428,978
482,214
6,212
917,404
548,081
356,104
904,185
13,219
417,303
$ 430,522
ROSEMEAD HOUSING DEVELOPMENT CORPORATION
A COMPONENT UNIT OF THE CITY OF ROSEMEAD, CALIFORNIA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2022
Net change in fund balance - total governmental funds
Amounts reported for governmental activities in the statement of activities are
different because:
13,219
Governmental funds report capital outlays as expenditures. However, in the statement
of activities, the costs of those assets is allocated over their estimated useful lives
as depreciation and amortization expense. This is the amount by which capital outlays exceeded
depreciation and amortization in the current period. (39,373)
Capital outlay
Repayment of long-term debt principal is an expenditure in the governmental funds, but the
repayment reduces long-term liabilities in the statement of net position.
Lease payable repayments (183,400)
Change in Net Position of Governmental Activities
The notes to financial statements are an integral part of this statement.
$ (209,554)
ROSEMEAD HOUSING DEVELOPMENT CORPORATION
A COMPONENT UNIT OF THE CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
Note 1: Summary of Significant Accounting Policies
a. Reporting Entity
The Rosemead Housing Development Corporation (the Corporation) is a nonprofit
corporation whose purpose is to provide assistance to the Rosemead Community
Development Commission (the Commission) to account for the construction, financing and
operations of low- and moderate -income housing for the benefit of the City of Rosemead
(the City). The Corporation currently maintains the Angelus and Garvey Senior Housing
facilities. The Corporation is exempt from income taxes under Section 501 (c)(3) of the
Internal Revenue Code (IRC) and applicable state statutes.
Governmental Accounting Standards Board (GASB) Statement No. 14, The
Financial Reporting Entity, defines the reporting entity as the primary government and
those component units for which the primary government is financially accountable.
Financial accountability is defined as appointment of a voting majority of the component
unit's Board and either (a) the primary government has the ability to impose its will or
(b) the possibility exists that the component unit will provide a financial benefit to or impose
a financial burden on the primary government. Since the Board of Directors of the
Commission and the Council members also serve as the Board of Directors of the
Corporation, the Commission and the City, in effect, have the ability to influence and control
operations. Therefore, the City has oversight responsibility for the Corporation.
Accordingly, in applying the criteria of GASB Statement No. 14, the financial statements of
the Corporation are included in the City's financial reports.
The Corporation has the same fiscal year as the City. These financial statements contain
information for the Corporation only. The City's financial report may be obtained by
contacting the Financial Department of the City.
As a result of the Assembly Bill X1 26 signed into law as part of the State of California's
budget package on June 29, 2011, the Rosemead Community Development Commission
ceased to exist as of February 1, 2012. On January 10, 2012, the City Council elected to
serve as the successor agency to the Commission and retain the housing assets and
functions previously held and performed by the Commission.
b. Basis of Accounting and Measurement Focus
The basic financial statements of the Corporation are composed of the following:
• Government -wide financial statements
• Fund financial statements
• Notes to the basic financial statements
Government -wide Financial Statements
Government -wide financial statements display information about the reporting government
as a whole, except for its fiduciary activities. These statements include separate columns
for the governmental and business -type activities of the primary government
(including its blended component units), as well as its discretely presented component
units. The Corporation has no business -type activities or discretely presented component
units.
ROSEMEAD HOUSING DEVELOPMENT CORPORATION
A COMPONENT UNIT OF THE CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2022
Note 1: Summary of Significant Accounting Policies (Continued)
Government -wide financial statements are presented using the economic resources
measurement focus and the accrual basis of accounting. Under the economic resources
measurement focus, all (both current and long-term) economic resources and obligations
of the reporting government are reported in the government -wide financial statements.
Basis of accounting refers to when revenues and expenditures are recognized in the
accounts and reported in the financial statements. Under the accrual basis of accounting,
revenues, expenses, gains, losses, assets, and liabilities resulting from exchange and
exchange -like transactions are recognized when the exchange takes place. Revenues,
expenses, gains, losses, assets, and liabilities resulting from nonexchange transactions
are recognized in accordance with the requirements of GASB Statement No. 33.
Program revenues include charges for services and payments made by parties outside of
the reporting government's citizenry if that money is restricted to a particular program.
Program revenues are netted with program expenses in the statement of activities to
present the net cost of each program.
Amounts paid to acquire capital assets are capitalized as assets in the government -wide
financial statements, rather than reported as expenditures. Proceeds of long-term debt
are recorded as a liability in the government -wide financial statements, rather than as
another financing source. Amounts paid to reduce long-term indebtedness of the reporting
government are reported as a reduction of the related liability, rather than as an
expenditure.
Fund Financial Statements
The underlying accounting system of the Corporation is organized and operated on the
basis of separate funds, each of which is considered to be a separate accounting entity.
The operations of each fund are accounted for with a separate set of self -balancing
accounts that comprise its assets, liabilities, fund balance, revenues and expenditures or
expenses, as appropriate. Governmental resources are allocated to and accounted for in
individual funds based upon the purposes for which they are to be spent and the means
by which spending activities are controlled.
Fund financial statements for the primary government's governmental, proprietary, and
fiduciary funds are presented after the government -wide financial statements. These
statements display information about major funds individually and nonmajor funds in the
aggregate for governmental and enterprise funds. Fiduciary statements include financial
information for fiduciary funds and similar component units. Fiduciary funds primarily
represent assets held by the Corporation in a custodial capacity for other individuals or
organizations. The Corporation has no enterprise funds or fiduciary funds.
Governmental Funds
In the fund financial statements, governmental funds and agency funds are presented
using the modified -accrual basis of accounting. Their revenues are recognized when they
become measurable and available. Measurable means that the amounts can be estimated,
or otherwise determined. Available means that the amounts were collected during the
reporting period or soon enough thereafter to be available to finance the expenditures
accrued for the reporting period. The Corporation uses a sixty day availability period.
ROSEMEAD HOUSING DEVELOPMENT CORPORATION
A COMPONENT UNIT OF THE CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2022
Note 1: Summary of Significant Accounting Policies (Continued)
Revenue recognition is subject to the measurable and available criteria for the
governmental funds in the fund financial statements. Exchange transactions are
recognized as revenues in the period in which they are earned (i.e., when the related goods
or services are provided). Locally imposed derived tax revenues are recognized as
revenues in the period in which the underlying exchange transaction upon which they are
based takes place. Imposed non-exchange transactions are recognized as revenues in the
period for which they were imposed. If the period of use is not specified, they are
recognized as revenues when an enforceable legal claim to the revenues arises or when
they are received, whichever occurs first. Government -mandated and voluntary
nonexchange transactions are recognized as revenues when all applicable eligibility
requirements have been met.
In the fund financial statements, governmental funds are presented using the
current financial resources measurement focus. This means that only current assets and
current liabilities are generally included on their balance sheets. The reported fund balance
(net current assets) is considered to be a measure of "available spendable resources."
Governmental fund operating statements present increases (revenues and other financing
sources) and decreases (expenditures and other financing uses) in net current assets.
Accordingly, they are said to present a summary of sources and uses of
"available spendable resources" during a period.
Non-current portions of long-term receivables due to governmental funds are reported on
their balance sheets in spite of their spending measurement focus. Special reporting
treatments are used to indicate, however, that they should not be considered
"available spendable resources," since they do not represent net current assets.
Recognition of governmental fund type revenues represented by noncurrent receivables
are deferred until they become current receivables.
Because of their spending measurement focus, expenditure recognition for governmental
fund types excludes amounts represented by noncurrent liabilities. Since they do not affect
net current assets, such long-term amounts are not recognized as governmental fund type
expenditures or fund liabilities.
Amounts expended to acquire capital assets are recorded as expenditures in the year that
resources were expended, rather than as fund assets. The proceeds of long-term debt are
recorded as an other financing source rather than as a fund liability. Amounts paid to
reduce long-term indebtedness are reported as fund expenditures.
When both restricted and unrestricted resources are combined in a fund, expenses are
considered to be paid first from restricted resources, and then from unrestricted resources.
c. Major Fund
The Corporation reports the General Fund as its major fund.
ROSEMEAD HOUSING DEVELOPMENT CORPORATION
A COMPONENT UNIT OF THE CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2022
Note 1: Summary of Significant Accounting Policies (Continued)
d. Cash and Investments
Cash includes amounts in demand and time deposits. Investments, if any, are reported in
the accompanying balance sheet at fair value, except for certain money market and
investment contracts that are reported at cost because they are not transferable, and they
have terms that are not affected by changes in market interest rates.
Changes in fair value that occur during a fiscal year are recognized as income from
property and investments reported for that fiscal year. Income from property and
investments includes interest earnings, changes in fair value, any gains or losses realized
upon the liquidation, maturity or sale of investments, property rentals, and the sale of
City -owned property.
e. Capital Assets
Capital assets, which include buildings and improvements, furniture and equipment, and
right -to -use intangible assets are reported as part of governmental activities in the
government -wide financial statements. Capital assets are defined by the Corporation as
assets with an initial, individual cost of more than $10,000 and an estimated useful life in
excess of one year. Such assets are recorded at historical cost or estimated historical cost
if purchased or constructed. Donated capital assets are recorded at acquisition value at
the date of donation.
The cost of normal maintenance and repairs that do not add to the value of an asset or
materially extend an asset's useful life are not capitalized.
Costs associated with construction in progress are recorded in their respective capital
assets category upon approval by the Corporation's governing board, which approximates
the completion date.
Depreciation is charged to operations using the straight-line method based on the
estimated useful life of an asset. The estimated useful lives of depreciable assets are
as follows:
Buildings 50 years
Improvement 15 years
Furniture and equipment 7 years
f. Income Taxes
The Corporation is exempt from federal income taxes under Section 501(c)(3) of the
IRC and a similar exemption under state law.
g. Fund Balance
The Corporation reports fund balance in classifications that describe the relative strength
of the spending constraints placed on the purposes for which resources can be used:
Nonspendable — amounts that are not in a spendable form (such as inventory) or are
required to be maintained intact.
ROSEMEAD HOUSING DEVELOPMENT CORPORATION
A COMPONENT UNIT OF THE CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2022
Note 1: Summary of Significant Accounting Policies (Continued)
• Restricted — amounts constrained to specific purposes by their providers
(such as grantors, bondholders and higher levels of government), through
constitutional provisions or by enabling legislation.
• Committed — amounts constrained to specific purposes by a government itself, using
the highest level of decision-making authority; to be reported as committed, amounts
cannot be used for any other purpose unless the government takes the same
highest -level action to remove or change the constraint.
• Assigned — amounts a government intends to use for a specific purpose; intent can
be expressed by the governing body or by an official or body to which the governing
body delegates the authority.
• Unassigned — amounts that are for any purpose; positive amounts are reported only
in a general fund.
The Board of Directors establishes (and modifies or rescinds) fund balance commitments
by passage of an ordinance or resolution. The Board designates the Finance Director and
City Manager as the Corporation officials to determine, define, and make the necessary
account or fund transfers for the amounts to those components of fund balance that are
classified as "Assigned Fund Balance."
When both restricted and unrestricted resources are available for use when an expenditure
is incurred, it is the Corporation's policy to use restricted resources first, then unrestricted
resources as they are needed. It is the Corporation's policy to consider committed amounts
as being reduced first, followed by assigned amounts, and then unassigned amounts when
expenditures are incurred for purposes for which amounts in any of those unrestricted fund
balance classifications could be used.
h. Rental Income
A management company collects rent payments on the first day of the month and the
corporation recognizes revenue in the month due. Monthly rental income per unit ranges
from $250 to $450 and is approved by the annual budget. All rental activities involving the
Corporation are on a month-to-month basis and subsequently are exempt from reporting
under GASB 87.
I. Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting
principles requires management to make estimates and assumptions that affect
certain reported amounts and disclosures. Accordingly, actual results could differ from
those estimates.
ROSEMEAD HOUSING DEVELOPMENT CORPORATION
A COMPONENT UNIT OF THE CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2022
Note 1: Summary of Significant Accounting Policies (Continued)
j. Changes in Accounting Principles and New GASB Pronouncements
During the year ended June 30, 2022, the Corporation adopted the following new
accounting standard issued by the Governmental Accounting Standards Board (GASB):
GASB Statement No. 87 Leases enhances usefulness and comparability of financial
statements among governments by requiring lessees and lessors to report leases using a
single model. This statement requires recognition of certain lease assets and liabilities for
leases that were previously classified as operating leases and recognizes inflows or
outflows of resources based on the payment provisions of the lease contracts. Under
GASB Statement No. 87, a lessee is required to recognize a lease liability and an intangible
right -to -use lease asset, and a lessor is required to recognize a lease receivable and
deferred inflow of resources.
Impact to Beginning Net
Position for Fiscal Year
Ended June 30. 2022
Intangible asset, net of amortization $ 5,728,817
Capital leases payable recorded (5,728,817)
Total restatement of Net Position $
Note 2: Cash and Investments
Cash and investments at June 30, 2022 consisted of demand deposits with financial institutions
and the Corporation's share in the pooled cash of the City of Rosemead's investments. The
carrying amount and the bank balance of the Corporation's demand deposits was $451,655.
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in event of the failure of a depository financial
institution, a government will not be able to recover its deposits or will not be able to recover
collateral securities that are in the possession of an outside party. The Corporation maintains
its bank accounts at financial institutions that are collateralized with securities held by the
pledging financial institution, or by its Trust Department or agent, but not in the Corporation's
name. The primary difference between the carrying amount and the bank balance are deposits
in transit and outstanding checks. In accordance with state statutes, the Corporation maintains
deposits at those depository institutions insured by the FDIC. The California Government Code
(the Code) requires California banks and savings and loan associations to collateralize the
deposits of governmental entities by pledging government securities as collateral. The market
value of pledge securities must equal at least 110% of those deposits. California law also allows
financial institutions to secure the deposits of governmental entities by pledging first trust deed
mortgage notes having a collateral value of 150% of a corporation's total deposits. As of
June 30, 2022, the Corporation had no deposits with financial institutions in excess of federal
depository insurance limits.
ROSEMEAD HOUSING DEVELOPMENT CORPORATION
A COMPONENT UNIT OF THE CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2022
Note 3: Reimbursement Agreements and Related Party Transactions
The Corporation has entered into a reimbursement agreement with the City for the
Corporation's administrative services. The Corporation paid $172,704 for administrative
services to the City during the year ended June 30, 2022. The Corporation is funded, in part,
by contributions from the Successor Agency.
The Corporation has also entered into a 55 -year lease agreement with the City for the Angelus
Senior Housing facility at $60,000 annually, expiring June 2047. The Corporation has also
entered into a 55 -year lease agreement with the City for the Garvey Senior Housing facility at
$72,000 annually, expiring November 2057. The lease amounts are to increase by 2% per year
or by the percentage increase in CPI, whichever is higher. The Corporation paid $91,200 and
$92,200 in lease payments to the City during the year ended June 30, 2022 for the Angelus
and Garvey Senior Housing facilities, respectively.
Note 4: Lease Payable
Effective July 1, 2021, the Corporation implemented GASB 87 for the Angelus Senior Housing
facility and the Garvey Senior Housing facility as described in Note 3. As of June 30, 2022, the
lease liability outstanding and the total intangible asset net of accumulated amortization
amounted to $5,545,417. The lease payments are interest free and have not been subject to
the 2% increase or percentage increase in CPI since FY 2011/12.
Beginning Due in
Balance Additions Deletions Ending Balance One Year
$ 5,728,817 $ - $ 183,400 $ 5,545,417 $ 183,400
Future principal and interest requirements to maturity for the combined capital lease liability as
of June 30, 2022 are as follows:
Future Princioal and Interest Reouirements
Governmental Activities
Year ending
June 30,
Principal Interest
Total Payments
2023
$ 183,400 $ -
$ 183,400
2024
183,400 -
183,400
2025
183,400 -
183,400
2026
183,400 -
183,400
2027
183,400 -
183,400
2028-2032
917,000 -
917,000
2033-2037
917,000 -
917,000
2038-2042
917,000 -
917,000
2043-2047
917,000 -
917,000
2048-2052
461,000 -
461,000
2053-2057
461,000 -
461,000
2058-2062
38,417 -
38,417
Total
$ 5,545,417 $ -
$ 5,545,417
ROSEMEAD HOUSING DEVELOPMENT CORPORATION
A COMPONENT UNIT OF THE CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2022
Note 5: Capital Assets
During the year ended June 30, 2022, the changes in capital assets were as follows
Depreciation and amortization expense is allocated to the general government function in the
statement of activities.
Note 6: Risk Management
The Corporation is exposed to various risks of loss related to torts, thefts of, damage to and
destruction of assets, errors and omissions, and natural disasters. The Corporation, through
the City, carries commercial liability insurance coverage. The Corporation carries no insurance
coverage for natural disasters. Since the Corporation does not have any employees
(it uses employees from the City), it is not liable for injury to employees, workers' compensation,
or employee health and accident insurance. The City has had no reduction in insurance
coverage, nor did the City have any settlements that were in excess of insurance coverage in
any of the three preceding years.
Note 7: Property Management and Operations
The Corporation has two agreements with a management company, dated July 1994 and
April 2002, to operate the development housing. These agreements are automatically renewed
for successive periods of one year, unless terminated by the Corporation. The management
company is responsible for collecting rents and receipts, employing an on-site manager and
maintaining financial records. Total fees paid to the management company were $25,092 for
the Angelus Senior Housing facility and $35,424 for the Garvey Senior Housing facility during
fiscal year ended June 30, 2022.
Balance at
Balance at
June 30, 2021
Additions Deletions
June 30, 2022
Governmental Acti Abes:
Capital assets being depreciatedlamortlzed:
Building and improvements
$ 11,042,597
$ - $ -
$ 11,042,597
Furniture and equipment
128,544
- -
128,544
Right -to -use facilities
10,087,000
- -
10,087,000
Total Capital Assets,
Being Depreciated/amortized
21,258,141
21,258,141
Less accumulated depreciation/amortization:
Building and improvements
(4,603,154)
(222,773) -
(4,825,927)
Furniture and equipment
(128,544)
- -
(128,544)
Rght-to-use facilities
(4,358,183)
(183,400)
(4,541,583)
Total Accumulated
Depreciationlamortization
(9,089,881)
(406,173)
(9,496,054)
Governmental Activities
Capital Assets, Net
$ 12,168,260
$ 406,173 $ -
$ 11,762,087
Depreciation and amortization expense is allocated to the general government function in the
statement of activities.
Note 6: Risk Management
The Corporation is exposed to various risks of loss related to torts, thefts of, damage to and
destruction of assets, errors and omissions, and natural disasters. The Corporation, through
the City, carries commercial liability insurance coverage. The Corporation carries no insurance
coverage for natural disasters. Since the Corporation does not have any employees
(it uses employees from the City), it is not liable for injury to employees, workers' compensation,
or employee health and accident insurance. The City has had no reduction in insurance
coverage, nor did the City have any settlements that were in excess of insurance coverage in
any of the three preceding years.
Note 7: Property Management and Operations
The Corporation has two agreements with a management company, dated July 1994 and
April 2002, to operate the development housing. These agreements are automatically renewed
for successive periods of one year, unless terminated by the Corporation. The management
company is responsible for collecting rents and receipts, employing an on-site manager and
maintaining financial records. Total fees paid to the management company were $25,092 for
the Angelus Senior Housing facility and $35,424 for the Garvey Senior Housing facility during
fiscal year ended June 30, 2022.
ROSEMEAD HOUSING DEVELOPMENT CORPORATION
A COMPONENT UNIT OF THE CITY OF ROSEMEAD, CALIFORNIA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2022
Note 1: Budgetary Information
Annual budgets are adopted on a basis consistent with accounting principles generally
accepted in the United States of America for the governmental fund. All annual appropriations
lapse at fiscal year-end.
On or before the last day in March of each year, all agencies of the government submit requests
for appropriations to the government's manager so that a budget may be prepared. Before the
first Thursday of June, the proposed budget is presented to the Corporation's governing board
for review. The governing board holds public hearings and a final budget must be prepared
and adopted no later than June 30.
The appropriated budget is prepared by fund, function and department. The Corporation's
department directors, with approval of the Finance Director and City Manager, may make
transfers of appropriations within the department and between departments within a fund. The
legal level of budgetary control (i.e., the level at which expenditures may not legally
exceed appropriations) is the fund level.
Encumbrance accounting is employed in governmental funds. Encumbrances
(e.g., purchase orders, contracts) outstanding at year end do not constitute expenditures
or liabilities because the commitments will be re -appropriated and honored during the
subsequentyear.
ROSEMEAD HOUSING DEVELOPMENT CORPORATION
A COMPONENT UNIT OF THE CITY OF ROSEMEAD, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
FOR THE YEAR ENDED JUNE 30, 2022
Budgetary Fund Balance, July 1
Available for Appropriations (Inflows):
Intergovemmental
Rental income
Use of money and property
Miscellaneous
Amounts Available for Appropriations
1,334,703
1,334,703
Variance with
4
Charges to Appropriations (Outflows):
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$ 417,303 $
417,303
$ 417,303
$ -
437,000
437,000
428,978
(8,022)
475,800
475,800
474,233
(1,567)
-
-
7,981
7,981
4,600
4,600
6,212
1,612
Amounts Available for Appropriations
1,334,703
1,334,703
1,334,707
4
Charges to Appropriations (Outflows):
Operating costs
561,200
561,200
548,081
13,119
Administrative services paid to City of Rosemead
172,800
172,800
172,704
96
Facility rent paid to City of Rosemead
183,400
183,400
183,400
-
Total Charges to Appropriations
917,400
917,400
904,185
13,215
Budgetary Fund Balance, June 30
$ 417,303 $
417,303 $
430,522 $
13,219
The notes to required supplementary information are an integral part of this schedule.
7
LSL:o �0
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL
OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
To the Board of Directors
Rosemead Housing Development Corporation
Rosemead, California
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States, the financial statements of the General Fund of the
Rosemead Housing Development Corporation (the Corporation), a component unit of the City of
Rosemead, California (the City), as of and for the year ended June 30, 2022, and the related notes to the
financial statements, which collectively comprise the Corporation's basic financial statements, and have
issued our report thereon dated January 18, 2023.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City's internal control
over the Corporation's financial reporting (internal control) as a basis for designing audit procedures that
are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements,
but not for the purpose of expressing an opinion on the effectiveness of the City's internal control.
Accordingly, we do not express an opinion on the effectiveness of the City's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management
or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,
misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in
internal control, such that there is a reasonable possibility that a material misstatement of the entity's
financial statements will not be prevented, or detected and corrected on a timely basis. A significant
deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a
material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses
may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Corporation's financial statements are free
from material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements, noncompliance with which could have a direct and material
effect on the financial statements. However, providing an opinion on compliance with those provisions was
not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests
disclosed no instances of noncompliance or other matters that are required to be reported under
Government Auditing Standards.
PrimeGlobal !
Attachment F
Auditors' Letter to Board of Directors of the
Rosemead Housing Development
Corporation for Year Ended June 30, 2022
LS000L•
January 18, 2023
To the Board of Directors
Rosemead Housing Development Corporation
City of Rosemead, California
We have audited the financial statements of the governmental activities and the General Fund of the
Rosemead Housing Development Corporation (the Corporation), a component unit of the
City of Rosemead, California for the year ended June 30, 2022. Professional standards require that we
provide you with information about our responsibilities under generally accepted auditing standards,
Government Auditing Standards and the Uniform Guidance, as well as certain information related to the
planned scope and timing of our audit. We have communicated such information in our letter to you dated
April 19, 2022. Professional standards also require that we communicate to you the following information
related to our audit.
Sianificant Audit Findings and Other Issues
Qualitative Aspects of Significant Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant
accounting policies used by the Corporation are described in Note 1 to the financial statements. As
described in Note 1 to the financial statements, the Corporation changed accounting policies related to
accounting for leases by adopting Statement of Governmental Accounting Standards (GASB Statement)
No. 87, Leases, in the fiscal year ended June 30, 2022. Accordingly, the cumulative effect of the accounting
change as of the beginning of the year is reported in the Statement of Revenues, Expenses, and Changes
in Net Position. We noted no transactions entered into by the Corporation during the year for which there
is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the
financial statements in the proper period.
Accounting estimates are an integral part of the financial statements prepared by management and are
based on management's knowledge and experience about past and current events and assumptions about
future events. Certain accounting estimates are particularly sensitive because of their significance to the
financial statements and because of the possibility that future events affecting them may differ significantly
from those expected.
The financial statement disclosures are neutral, consistent, and clear.
Significant Unusual Transactions
Management is responsible for the policies and practices used to account for significant unusual
transactions. No significant unusual transactions have occurred during fiscal year 2021-2022.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our
audit.
PrimeGlobal
LS L9�::
To the Board of Directors
Rosemead Housing Development Corporation
City of Rosemead, California
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the
audit, other than those that are trivial, and communicate them to the appropriate level of management. No
misstatements were found.
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing
matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or
the auditor's report. We are pleased to report that no such disagreements arose during the course of our
audit.
Management Representations
We have requested certain representations from management that are included in the management
representation letter dated January 18, 2023.
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting
matters, similar to obtaining a "second opinion' on certain situations. If a consultation involves application
of an accounting principle to the Corporation's financial statements or a determination of the type of
auditor's opinion that may be expressed on those statements, our professional standards require the
consulting accountant to check with us to determine that the consultant has all the relevant facts. To our
knowledge, there were no such consultations with other accountants.
Other Audit Findings or Issues Discussed with Management
We generally discuss a variety of matters, including the significant events or transactions that occurred
during the year, business conditions affecting the Corporation and business plans and strategies that may
affect the risks of material misstatements, the application of accounting principles and auditing standards,
with management each year prior to retention as the Corporation's auditors. However, these discussions
occurred in the normal course of our professional relationship and our responses were not a condition to
our retention.
Other Matters
We applied certain limited procedures to budgetary comparison schedule for the General Fund which are
required supplementary information (RSI) that supplements the basic financial statements. Our procedures
consisted of inquiries of management regarding the methods of preparing the information and comparing
the information for consistency with management's responses to our inquiries, the basic financial
statements, and other knowledge we obtained during our audit of the basic financial statements. We did
not audit the RSI and do not express an opinion or provide any assurance on the RSI.
LSL*�::
To the Board of Directors
Rosemead Housing Development Corporation
City of Rosemead, California
The following new Governmental Accounting Standards Board (GASB) pronouncements were effective for
fiscal year 2021-2022 audit:
GASB Statement No. 87. Leases.
GASB Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction
Period.
GASB Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting
for Internal Revenue Code Section 457 Deferred Compensation Plans.
The following GASB pronouncements are effective in the following fiscal years' audits and should be
reviewed for proper implementation by management:
Fiscal year 2023
GASB Statement No. 91, Conduit Debt Obligations.
GASB Statement No. 94, Public -Private and Public -Public Partnerships and Availability Payment
Arrangement.
GASB Statement No. 96, Subscription -Based Information Technology Arrangements.
Fiscal year 2024
GASB Statement No. 99, Omnibus 2022.
GASB Statement No. 100, Accounting Changes and Error Corrections.
Fiscal year 2025
GASB Statement No. 101, Compensated Absences.
Restriction on Use
This information is intended solely for the use of the Board of Directors and management of
Rosemead Housing Development Corporation and is not intended to be, and should not be, used by anyone
other than these specified parties.
Very truly yours,
Brea, California