I am pleased to present the Adopted Operating and Capital Improvement Program Budgets for Fiscal Year 2023-24. This budget provides an overview and detailed information on each of the City’s departments and describes the activities and programs included in the budget. It also incorporates the City’s Capital Improvement Program for the incoming budget year and the budget for the Rosemead Housing Development Corporation. As in prior years, the budget presents information pertaining to the Successor Agency as “information only.”
As shown in the following chart, the City of Rosemead’s Adopted FY 2023-24 Operating Budget, including transfers, is $39,009,100 with an additional $3,089,000 within the Adopted Capital Improvement Program (CIP).
GENERAL FUND – The General Fund is balanced with an adopted budget (City operating and CIP) of $29,678,900 balanced against $28,837,200 in estimated revenues. Overall, General Fund revenues are expected to be below FY 2023-24 appropriations by $841,700. The General Fund has sufficient fund balance to cover the excess in expense over revenues. The general fund balance is projected to remain sufficiently above the 40% fund balance reserve policy in FY 2023-24.
- GENERAL FUND REVENUE – Fiscal year 2023-24 General Fund revenue is adopted at $28,837,200, representing an increase of 4.0% over the FY 2022-23 budgeted amount. The largest increases from the prior year are taxes, use of property, and charges for services.
- TAXES – Taxes, which represent over 78% of the City’s General Fund revenues, are expected to increase 5% over last year’s budgeted amount. Property tax and property tax in-lieu of vehicle license fees represent of tax revenue and 40% of total General Fund revenue. These two sources are based on assessed property value and its growth was not impacted by the Pandemic. Sales tax represents 24% of total General Fund revenue and although the revenue source was impacted by the Pandemic, not to level first anticipated. Sales tax is anticipated to decrease, based on forecast provided by our third-party sales tax consultant HDL. Transient occupancy tax was most impacted by the Pandemic but is anticipated to fully recover with the budgeted amount of $2.3 million which is comparable to FY 2018-19, its highest year.
- USE OF PROPERTY – The increase in this category is largely due to increased interest rate earnings on fixed income securities.
GENERAL FUND EXPENDITURES – The appropriations for FY 2023-24 are $29,678,900 which are comprised of a $29,618,900 operating budget and a $60,000 portion of the Capital Improvement Program and is 7% greater than the adopted FY 2022-23 budget. The budget amount includes the assumption of a 2% salary and benefit increase, various contract, and utility increases, $736,400 in new expenses, $179,100 in new programs, and $1,077,900 in one-time services and equipment purchases.
OTHER FUNDS – The City has 21 Special Revenue funds that are restricted in their use based on the purpose for which the revenue is collected. Collectively, the funds are adopted at $9,340,200 in operating appropriations and $1,843,700 in capital improvement program appropriations, offset by $14,889,500 in restricted revenue estimated for FY 2023‐24 and the use of available fund balance. Most revenue estimates for these funds are provided by outside sources as discussed in the Revenue Detail section of this document. The foundation for increasing this year’s recommended Capital Improvement Program was a review of the fund balances of all special revenue funds, FY 2022‐23 year‐end estimates, FY 2023‐24 revenue projections, and current CIP obligations as detailed in the ‘Special Revenue Funds’ section of this document. The City also has three Internal Service Funds which together, were estimated at $50,000 in revenue (transfer from the General Fund and interest earnings) and $50,000 in adopted expenditures for capital equipment and improvements. One additional Internal Service Fund, the Public Facilities Internal Service Fund, was created to help fund future major maintenance and capital improvements to all City facilities and structures. The capital improvement projects for fiscal year 2023‐24 to be funded by the new Internal Service Fund amounts to $1,185,333.
STAFFING – The fiscal year 2023-24 budget includes citywide staffing level of 72 full-time positions. Upon adoption, the FY 2022-23 budget authorized a staffing level of 68 full-time employees, however, during the year two positions have been added, bringing the current staffing level to 70 full-time positions. There are two new full-time positions, one (1) Administrative Analyst within Public Works, and one (1) Assistant Planner. In addition, this budget contains an adjustment to add one (1) Deputy Director of Community Development position and delete one (1) Planning and Economic Development Manager position. All salary ranges shown are current rates for FY 2022-23 and do not reflect a cost-of-living adjustment for FY 2023-24 since those terms are still being negotiated and have not been approved by Council.
CAPITAL IMPROVEMENT PROGRAM – The Capital Improvement Program (CIP) section includes project worksheets for each new and continuing project in addition to the summary charts for new projects and/or additional funding for FY 2023-24, a listing of continuing projects, a listing of completed/deleted projects, and a comprehensive listing of all projects in the 5-Year CIP. CIP projects include building, upgrading, or replacing City infrastructure such as residential and arterial streets, traffic signals, parks, and public facilities. The FY 2023-24 Adopted CIP adds $3,089,000 to the current program for a total Capital Improvement Program Plan consisting of 45 projects in the amount of $51,934,850. The General Fund contributes $60,000 to the Program as partial funding for the annual Preventative Pavement Maintenance program and serves as part of the Maintenance of Effort (MOE) requirements for certain special funds. In addition to this year’s contribution, the General Fund is also obligated for projects previously approved but have not yet been completed in the amount of $214,915. These improvements are funded primarily by transportation related special revenue funds including American Rescue Plan funds, the street light district, and grants. As reflected in the following chart, the primary funding sources for the FY 2023-24 added projects is the General Fund, Street Light, CDBG and Gas Tax. Use of the street light fund for new and continuing projects is allowable due to the approval of Senate Bill No. 1307 which allows Rosemead to use its Street Lighting Act of 1919 revenue in accordance with Landscaping and Lighting Act of 1972 regulations. The City’s light district is part of the 1% property ad valorem tax and not an additional assessment to our residents.
ROSEMEAD HOUSING DEVELOPMENT CORPORATION – The City, through the Rosemead Housing Development Corporation (RHDC) owns and operates two Senior Housing facilities. The funding source of the RHDC is a combination of the rents collected from tenants and contributions from the Successor Agency to former Community Development Commission to cover any operating shortfalls and lease obligations to the City.
FINANCIAL POLICIES – As part of the annual budget process, the Financial Policies contained within the Budget Guide section of this document are reviewed and updated as needed. There are no new financial policies recommended for adoption for FY 2023-24.
CONCLUSION – The Adopted Budget document has been produced with the cooperation of all City Departments and coordinated by the Finance Department. An enormous amount of data is compiled to accomplish the accurate layering of revenue estimates, anticipated expenses, cost allocations, and salary calculations for a City with multiple programs and funds. In the end, the FY 2023-24 Adopted Budget is staff’s best estimate of a spending plan for the coming year. As always, staff will continue to monitor the City’s fiscal health throughout the year and report upon any changing conditions. I would like to conclude by recognizing the contributions of the Department Directors and their staff members who worked on developing this year’s budget and for those providing services to Rosemead residents on a daily basis. I would like to give special thanks to Finance and Public Works department staff for their work in creating this document. Lastly, I would like to express my gratitude to the Mayor and City Council for their leadership, prudent fiscal policy decisions, and support crucial to achieving the City’s goals.
View 2023-24 Fiscal Year Budget