CC - Item 5C - Study Session and Review of the Proposal FY 2023-24 Operating and Capital Improvement Program BudgetsROSEMEAD CITY COUNCIL
STAFF REPORT
TO: THE HONORABLE MAYOR AND CITY COUNCIL
FROM: BEN KIM, CITY MANAGER
DATE: JUNE 13, 2023
SUBJECT: STUDY SESSION — REVIEW OF THE PROPOSED FY 2023-24
OPERATING AND CAPITAL IMPROVEMENT PROGRAM BUDGETS
DISCUSSION
This report summarizes the City's overall financial position for the Proposed FY 2023-24. The
purpose of the study session meeting is for staff to present the Proposed FY 2023-24 Budget to
City Council, answer related questions, and receive feedback on the proposal for possible adoption
on June 27, 2023. The Proposed FY 2023-24 Budget for all City operating expenditures is
$39,009,100 and is comprised of three operating fund types (General Fund, Special Revenue
Funds, and Internal Service Funds). The Capital Improvement Program budget is $3,089,000 and
includes funding for 5 new projects, additional funding for 2 existing projects, and funding for 4
annual projects. The Rosemead Housing Development Corporation (RHDC) budget is proposed
at $868,400. The Successor Agency budget is presented as `informational only' and is set at
$3,682,900 to cover debt service on the exiting bonds, operational shortfall and lease payments of
the RHDC, and administrative costs.
The Proposed FY 2023-24 Budget document is segmented into various sections as described
herein.
• The City Manager's BUDGET MESSAGE provides an overview and summary of the
proposed budget.
• The BUDGET GUIDE provides a wide variety of general information including a City
overview, budget process and calendar, the budget structure, fund descriptions, the City's
financial policies, common terminology, and other useful information.
• The STAFFING section includes a summary and comprehensive listing of full-time personnel
with historical staffing trends, full-time positions as allocated to funding sources, a summary
of part-time staff, a listing of salary and benefit pay components used in determining salary
and benefit costs, a summary of personnel costs by component, and PERS related information
for the City.
• The FINANCIAL SUMMARIES section provides various charts and graphs including
projected available balances, revenue and appropriation summaries, a summary of budget data
by division, and new for this year, a listing of capital outlay and supplemental budget requests.
AGENDA ITEM 5.0
City Council Meeting — FY 2023-24 Budget Study Session
June 13, 2023
Page 2 of 3
• The REVENUE DETAIL section contains information including revenue assumptions for
major General Fund revenue sources, estimate methodology for special revenue funds, and
line -item detail of historical and estimated revenues for all funds.
• The CAPITAL IMPROVEMENT PROGRAM section contains an overview of the program,
charts detailing new projects, carryover (active) projects, completed/deleted projects for the
year, the 5 -year CIP summary, and detailed data sheets describing the project, funding source,
status, and other relevant information for each new and existing project.
• The DEPARTMENTAL BUDGET SECTIONS provide details on all departments including a
budget summary for the department, organizational chart, a listing of significant changes from
the prior year, summaries and details for each division within the department, the departments
strategic goals and objectives, performance measurements, accomplishments, and the
department work plan.
• The SPECIAL REVENUE FUNDS section provides a description of the fund, the source of
the revenue estimate, a financial summary, budget details, and graphs showing the fund
balance history.
• The OTHER AGENCIES section provides an overview of the Rosemead Housing
Development Corporation and Successor Agency operations with detailed budget data also
included.
In addition, staff recommends budget amendments for the fiscal year 2022-23. The Council
recently approved the City Manager to enter into an agreement to purchase the Rosemead Chamber
of Commerce property at 3953 Muscatel Ave, Rosemead. The purchase was completed May 25,
2023. A budget adjustment of $950,900 will be needed within the General Fund for fiscal year
2022-23 to cover the cost of the purchase. In addition, staff has reviewed projects that are currently
funded by the American Rescue Plan Act of 2021 (ARP). The American Rescue Plan Act of 2021
(ARP) provided $17.8 million to the City of Rosemead. The City has elected to place $10 million
of the $17.8 million in the category of revenue loss. The ARPA category for revenue loss is the
least restrictive of all categories. These funds may be used for direct municipal services. The
revenue loss category allows for greater spending flexibility, without the restrictions imposed by
ARPA rules and regulations on other categories. Staff is recommending that the Council approve
reappropriating $7,398,300 of the $10 million of revenue loss funds to pay for the purchase of the
Rosemead Chamber of Commerce property as well as to pay for City services that were negatively
impacted by the Covid-19 pandemic.
Staff is also recommending the creation of a Public Facilities Internal Service Fund to support
future improvements and maintenance of facilities and public infrastructure. The fund will allow
the City better plan for future capital projects, improvements, and replacements.
STAFF RECOMMENDATION
It is recommended that the City Council review the Fiscal Year 2023-24 Proposed Operating and
Capital Improvement Program Budget and provide staff direction.
City Council Meeting — FY 2023-24 Budget Study Session
June 13, 2023
Page 3 of 3
FISCAL IMPACT
None — This is informational only.
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
Prepared by:
Bryan Chua
Finance Director
Attachment A: FY 2023-24 Proposed Budget
Attachment A
FY 2023-24 Proposed Budget