City Council of Monterey Park
The City Council Acting on Behalf of the Successor Agency of the Former Redevelopment Agency, the Housing Authority, the Monterey Park Financing Authority and the Monterey Park Geologic Hazard Abatement District Agenda
Regular Meeting
Monterey Park City Hall Council Chambers
320 West Newmark Avenue, Monterey Park, CA 91754
Wednesday, December 17, 2025
6:30 PM
Mission Statement
The mission of the City of Monterey Park is to provide excellent service, foster growth and opportunity, and create a joyous and collaborative environment.
Land Acknowledgment
We would like to acknowledge that the land we inhabit today was once known as Tovangaar, the home of the Gabrieleño-Tongva people. We show our respect to the Gabrieleño-Tongva people, as well as all Indigenous people, past, present, and future, and honor their labor as original caretakers of this land. We commit to uplifting the Gabrieleño-Tongva people, invite you to acknowledge the history, and join us in caring for this land.
General Information
Documents related to an Agenda item are available to the public in the City Clerk’s Office located at 320 West Newmark Avenue, Monterey Park, CA 91754, during normal business hours and at www.montereypark.ca.gov/agendas.
The public may watch the meeting live on the city’s cable channel MPKTV (AT&T U-verse, channel 99 or Charter Communications, channel 182) or by visiting the city’s website at http://www.montereypark.ca.gov/133/City-Council-Meeting-Videos. Per the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please call City Hall at (626) 307-1359 for reasonable accommodation at least 24 hours before a meeting. Council Chambers are wheelchair accessible.
Public Comment for Matters Not on the Agenda
Pursuant to Rule 5 of Resolution No. 12226 (adopted February 17, 2021), speakers are limited to a total of five minutes for Public Comment and a total of five minutes on all other items on the Agenda; public hearings are exempt. Exception - See Public Hearing Procedures under Rule 7, Resolution No. 12226. If desirable, the Mayor and City Council may change the amount of time allowed for speakers.
While all comments are welcome, the Brown Act does not allow the City Council to take action on any item not on the agenda. The Council may briefly respond to comments after Public Communications is closed. Persons may speak to any matter that is not on the Agenda but within the City Council's
subject-matter jurisdiction at this time. Comments regarding an Agenda item, including the Consent Calendar, will be heard when that matter is called. Written Communication is accepted up to 24 hours before the meeting by completing an online form at www.montereypark.ca.gov/writtencomm. Written communications are provided to the City Council.
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1. Call to Order
Mayor
2. Flag Salute
The Monterey Park Police Explorers
3. Roll Call
Henry Lo, Vinh Ngo, Jose Sanchez, Thomas Wong, Elizabeth Yang
4. Agenda Revisions and Additions
5. Public Communications
6. Staff Communications
6.A. Public Works
7. Presentation
7.A. San Gabriel Valley Council of Governments - President Ed Reece
8. Old Business
8.A. Garvey Improvements Project Concept Approval
It is recommended that the City Council consider:
1. Approving the proposed concepts for the Garvey Avenue Improvements Project; and
2. Taking such additional, related, action that may be desirable.
9. Consent Calendar
All items under the Consent Calendar are considered by the City Council to be routine and will be enacted by one motion. Specific items may be removed from the Consent Calendar at the request of any member of the City Council for separate consideration.
9.A. Council Protocols
It is recommended that the City Council consider:
1. Receiving and filing this report. No action is required.
2. Taking such additional, related, action that may be desirable.
9.B. Receive and File 2024-2025 Annual Comprehensive Financial Report
It is recommended that the City Council consider:
1. Receiving and filing the City’s 2024-2025 Annual Comprehensive Financial Report (ACFR); and
2. Taking such additional, related, action that may be desirable.
9.C. Approval of Tax Agreement with Camino Real Chevrolet
It is recommended that the City Council consider:
1. Authorizing the City Manager to execute a Closing Agreement with Camino Real Chevrolet in a form approved by the City Attorney, governing payment in lieu of business license tax; and
2. Taking such additional, related, action that may be desirable.
9.D. Resolution approving FY 2025-2026 City of Monterey Park Comprehensive Salary schedule and Part-Time Salary Schedule
It is recommended that the City Council consider:
1. Adopting a Resolution approving the revised FY 2025-2026 City of Monterey Park Comprehensive Salary Schedule;
2. Approving the Revised Part-Time Classification Salary Ranges; and
3. Taking such additional, related, action that may be desirable.
9.E. Bruggemeyer Library Project
It is recommended that the City Council consider:
1. Authorizing the City Manager to execute a Professional Services agreement with Black, O’Dowd & Associates, dba BOA Architecture, for the preparation of Plans, Specifications and Engineer’s estimates (“PS&E”) for various library improvements in an amount not to exceed $89,000; and
2. Taking such additional, related, action that may be desirable.
9.F. Fiber Optic Installation
It is recommended that the City Council consider:
1. Adopting a Resolution waiving bidding requirements, authorizing the City Manager to enter into an agreement, in a form approved by the City Attorney, with Arcadian Infracom 2, LLC. for the purchase of fiber optic conduits and fiber and related amenities, and authorizing the City Manager or designee to approve change orders not to exceed $35,000 over the total contract amount; and
2. Taking such additional, related, action that may be desirable.
9.G. 2025-26 Street Rehabilitation at Various Locations – Award of Public Works Contract to Onyx Paving Company, Inc.
It is recommended that the City Council consider:
1. Authorizing the City Manager to execute a public works contract, in a form approved by the City Attorney, with Onyx Paving Company, Inc., in the contract amount of $3,936,000 for the 2025-26 Street Overlay at Various Locations project;
2. Authorizing the Public Works Director to approve change orders not to exceed $590,400 over the total contract amount;
3. Authorizing an appropriation of $425,000 from Fund 601, Street Bond to Fiscal Year 2025-26 Budget; and
4. Taking such additional, related, action that may be desirable.
9.H. 2025 Curb Ramp Improvements – Award of Public Works Contract to CJ Concrete Construction, Inc.
It is recommended that the City Council consider:
1. Authorizing the City Manager to execute a public works contract, in a form approved by the City Attorney, with CJ Concrete Construction in the contract amount of $181,745 for the 2025 Curb Ramp Improvements Project;
2. Authorizing the Public Works Director to approve change orders not to exceed
$18,175 over the total contract amount; and
3. Taking such additional, related, action that may be desirable.
9.I. Title VI Metro Plan Update
It is recommended that the City Council consider:
1. Approving the Title VI of the Civil Rights Act of 1964 (Title VI) Program Update;
2. Authorizing the City Manager or designee to submit the Title VI Program Update to the Los Angeles County Metro Office of Civil Rights and Federal Transit Administration (FTA); and
3. Taking such additional, related, action that may be desirable.
9.J. Amendment to Agreement No. 2488-AD with SVT Fleet Solutions, LLC
It is recommended that the City Council consider:
1. Authorizing the City Manager to execute an amendment to Agreement No. 2454-AD with SVT Fleet Solutions, in a form approved by the City Attorney, for maintenance and repair of fire engines, quint and other emergency vehicles for an amount not to exceed $176,000 through June 30, 2027;
2. Taking such additional, related, action that may be desirable.
9.K. Recognition of January 11, 2026 as National Human Trafficking Awareness Day
It is recommended that the City Council consider:
1. Adopting a Resolution recognizing January 11, 2025, as National Human Trafficking Awareness Day and;
2. Taking such additional, related, action that may be desirable.
10. Public Hearing
11. New Business
11.A. Atlantic Boulevard Bike Lanes
It is recommended that the City Council consider:
1. Providing direction on the installation of bike lanes on S. Atlantic Boulevard between Newmark Avenue and Harding Avenue; and
2. Taking such additional, related, action that may be desirable.
12. City Communications (City Council) / Future Agenda Items
13. Closed Session (if Required; City Attorney to Announce)
14. Adjournment
City Council Staff Report
Date: December 17, 2025
Agenda Item Number: 8.A.
To: The Honorable Mayor and City Council
From: Shawn Igoe, Public Works Director
Subject: Garvey Improvements Project Concept Approval
Recommendation:
It is recommended that the City Council consider:
1. Approving the proposed concepts for the Garvey Avenue Improvements Project; and
2. Taking such additional, related, action that may be desirable.
CEQA (California Environmental Quality Act):
The City reviewed the environmental impacts of the proposed Ordinance pursuant to the California Environmental Quality Act (Public Resources Code §§ 21000, et seq. “CEQA”) and the regulations promulgated thereunder (14 Cal. Code of Regs. §§ 15000, et seq., the “CEQA Guidelines”). CEQA Guidelines §§ 15060(c)(2), 15061(b)(3), and 15378 exempt activities that will not result in a direct or reasonably foreseeable indirect physical change in the environment, activities where there is possibility that it may have a significant effect on the environment, and activities that do not constitute a “project” as defined, respectively. This activity contemplates approval of conceptual plans only. Subsequent improvements will be evaluated separately under CEQA. Accordingly, this activity is exempt from further review.
Executive Summary:
The City was awarded funding through the Los Angeles County Metropolitan Transportation Authority (“LACMTA”) Project ID# MR2.1.1.21 and FTIP #LA9918883 for the design and construction of the Garvey Avenue Improvement project, from West Atlantic Boulevard to New Avenue, Capital Improvement Project (“CIP”) No. 96052. On April 16, 2025, the City awarded Mark Thomas the contract for the preparation of the plans, specifications and engineer’s (“PS&E”) estimate for Garvey Avenue Improvement Project (the “Project”). Mark Thomas held community outreach meetings to receive input from the community and performed traffic operations analysis. The result of these activities is a proposed concept for Garvey Avenue Improvement Project to meet the grant goals. It is recommended that the City Council approve the proposed concept which will allow Mark Thomas to begin the preparation of the PS&E.
Background:
The City received funding from LACMTA to fund the development and construction of the Garvey Avenue Improvements project, from West Atlantic Boulevard to New Avenue. The
Project is approximately 1.7 miles in length.
In April 2025, the City hired Mark Thomas consultants to provide PS&E for construction of the Project. The Project location is depicted below.
Project Location Map
Upon completion of the initial topographic surveys and inventory of roadway conditions, the Public Works Director and consultant Mark Thomas began implementation of community outreach efforts associated with the Project. These efforts consisted of the following two phases:
Outreach Phase 1 – Project Awareness & Initial Prioritization of Amenities & Features
1. Project Branding and Promotional Materials: Phases 1 of the PS&E consisted of project awareness and outreach for prioritization of amenities and features. Fact sheets, door hangers, post cards and project website content with relevant project information, timelines, limits, graphics, and a Project specific logo were developed. The outreach material was designed to be easily recognizable to capture Project goals and end users. Additionally, the content was provided in English, Spanish and Chinese languages and used to promote the Project to the community and key stakeholders.
2. Pop-Up Events: The Project team distributed promotional materials during the City’s June 28th Independence Day Celebration at Barnes Park.
3. Itemized Amenities and Features in Consideration for the Project: Several amenities and features were developed and considered in the project concept development in conformance with the City’s Complete Streets ordinance and LACMTA grant funding requirements. This list
was the basis of outreach efforts to the community and local businesses to prioritize elements including walkways, shade/trees, aesthetics, bikeways, transit, parking and other similar features.
4. Public Survey No. 1: An 11-question public survey in English, Spanish and Chinese languages was administered to the community from September 11, 2025 through October 5, 2025. The survey was accessible in printed and electronic web-based formats via a link on the Project website and QR code compatible with mobile devices. A total of 414 community members completed the survey. The results are provided in Attachment No. 1.
Key Demographic Elements: Of the 414 survey responses, 382 were completed in English and 31 in Chinese. Additionally, 9% of respondents stated they work at or own a business and 8% own property along Garvey Avenue within the project limits, indicating the survey was generally completed by adjacent residents and community members.
5. Door to Door Canvassing: To connect with more business owners/employees and to further promote the Public Survey No. 1, the Project team canvassed 453 addresses within a 500 ft. radius centered along Garvey Avenue between Atlantic Boulevard and New Avenue.
The team conducted discussions with 175 occupants and delivered project information postcards where occupants were not available. During the canvassing efforts, multiple business owners expressed concerns regarding loss or impacts to on-street parking, improvements and maintenance of landscaped areas, and countermeasures that would discourage vandalism. There was also general support in improving downtown walking areas and aesthetics.
6. Community Meetings: The City held community meetings to share information on the Project scope, answer questions and gather community input for the Project. In-person meetings were held on September 15, 2025 at the Langley Senior Center and September 22, 2025 at George E. Elder Park. Additionally, a virtual presentation was provided on September 25, 2025. Graphics and presentation boards were utilized at each meeting with approximately 40 community members attending each meeting.
Outreach Phase 2 – Focused Alternative Development and Screening
Alternatives Development: Phase 2 consisted of alternative development considerations based on feedback received during Phase 1 outreach efforts. This included the addition of walking areas, pedestrian mobility improvements, and additional amenities/aesthetics which had significantly higher support than other features. Maintaining lanes, adding bike facilities, improving bus/transit, and preserving parking were all generally close in the final results. The Project team utilized the alternatives shown below to prioritize and finalize the preferred alternative recommendations in this staff report. All three alternatives included the following improvements:
• Roadway Improvements: Asphalt pavement improvements will be restored to new condition along Garvey Avenue between Atlantic Boulevard and New Avenue through coldmill/overlay rehabilitation when existing conditions are generally in good condition along with reconstruction near new curb/driveway improvements and where existing asphalt condition shows signs of fatigue/cracking. Additionally, roadway striping will be repainted/applied and new signage where necessary to match the final alternative condition.
• Medians: An evaluation was completed to reduce median widths through reconstruction to increase widening to new sidewalks, however costs to perform this greatly reduced the length of widened sidewalks along this corridor by over 30% and was deemed infeasible for the additional 1-2’ width of sidewalk that can be obtained. Landscaping and irrigation within median areas will be replaced with landscaping matching the landscape palette included in this staff report, consistent with the City’s Urban Forest Master Plan and Tree Ordinance.
• Sidewalks, New Curb and Gutter: New curb, gutter, sidewalk and driveways will be constructed along Garvey Avenue between Atlantic Boulevard and Lincoln Avenue, widening sidewalk areas from 10-12’ to 14-16’. The additional 4’ on each side is accommodated through reducing on-street parking and lane widths to 7’ and 11’, respectively which is consistent with industry standard Complete Street Guidelines including publications from National Association of City Transportation Officials (NATCO), Caltrans Design Information Bulletin 98 Complete Streets: Contextual Design Guidance, and City of Los Angeles Supplemental Street Design Guide. Additionally, those publications and FHWA’s Speed Management Toolkit have supporting studies that show reduced lane widths in urban areas will lead to vehicular speeds between 25 mph and 35 mph, which will also improve safety for all forms of mobility. Non-ADA compliant and/or damaged sidewalk, curb, gutter, and driveways will be reconstructed between Lincoln Avenue and New Avenue. Lastly, the project will include curb extensions/bulb outs at high pedestrian crossing areas including, but not limited to the McPherrin Avenue, Ramona Avenue, and Garfield Avenue intersections. Widened sidewalk could not be accomplished from Atlantic Boulevard to New Avenue within the existing funding allocated for the project. Funding was just sufficient to allow widening between Atlantic Boulevard to Lincoln Avenue including 10% contingency.
• Bus/Transit Improvements: New architectural overhangs, benches and other amenities at existing bus stop locations along the corridor will be improved.
• Traffic Signals & Lighting: Traffic signal modifications will be implemented where necessary to accommodate the new project configuration. These changes may include adjustments to poles, push buttons, and signal equipment, as well as upgrades to meet current safety standards and guidelines. In coordination with the Adaptive Traffic Signal Project, signal interconnect and communication equipment will be installed as needed to ensure that all signals along Garvey Avenue operate seamlessly as part of an integrated corridor system. Additionally, new overhead lighting and pedestrian-scale lighting, including programmable seasonal lighting, will be installed where feasible along Garvey Avenue.
• New Bikeways: Consistent with the San Gabriel Valley Regional Bicycle Master Plan, new roadway striping and signage improvements will be included to add a Class III shared bikeway along Emerson Avenue and Newmark Avenue between Atlantic Boulevard and New Avenue.
These improvements will include the green shared bikeway pavement legend, warning and safety signage, wayfinding signage guiding users to recreational and destination areas, as necessary traffic calming features to keep speeds below 25 mph for vehicles. Additionally, similar improvements will be installed along McPherrin Avenue and Orange Avenue to install Class II bikeways providing linkages to Garvey Avenue, and Atlantic Boulevard to connect the new bikeways to proposed facilities constructed with the Monterey Pass Road Project.
• Landscape/Aesthetics: New trees and plants will be utilized along the corridor and
alternate between flowering and evergreen with an emphasis on providing additional shaded areas when mature, and all landscaping will offer a variety of color to match the Preferred Architectural Theme Option while also being drought tolerant.
Project alternatives: The alternatives below were developed prioritizing the items listed above.
Attachment No. 3 includes the following alternatives in larger formats for better illustration and details of proposed improvements.
Alternative 1 – Roadway Improvements W/ Parking
Alternative 2 - Bus Rapid Transit
This alternative maintains a similar
configuration to existing conditions
with wider walkways between
Atlantic Boulevard and Lincoln
Avenue on each side of Garvey
Avenue, on-street parking, four
vehicular lanes, and a raised
median/turn lanes along the center
of the roadway.
San Gabriel Valley Coalition of
Governments (SGVCOG) is studying
a new bus rapid transit facility
connecting Los Angeles to Pomona
to improve regional transit
operations/linkages and in
preparation of better connecting the
San Gabriel Valley residents to
future planned Olympic events in
2028. This alternative provides the
same wider walkways between
Atlantic Boulevard and Lincoln
Avenue as Alternative 1, on-street
parking, curb side bus rapid transit
lanes dedicated to buses or vehicles
only when making right turns, two
interior vehicular lanes, and a raised
median /turn lanes along the center
of the roadway.
Alternative 3 – Roadway improvement with no
parking
This alternative provides the same
wider walkways between Atlantic
Boulevard and Lincoln Avenue as
Alternative 1, Class II buffered bike
lanes in lieu of the on-street parking,
four vehicular lanes, and a raised
median / turn lanes along the center
of the roadway.
The alternatives listed above are all interchangeable and were developed such that all physical improvements (curbs, gutters, hardscape, amenities, landscape, etc.) can be installed and are compatible with all three alternatives. After construction of the preferred alternative, future improvements to convert to another alternative (i.e. remove or install the bus rapid transit lanes, remove or install the Class II buffered bike lanes) could be completed with no impact to physical improvements and would only involve minimal cost for striping/roadway signage improvements.
Architectural Themes
In addition to concepts, the following inspiration boards were developed to help identify a starting point in the identification of specific architectural features/treatments to include in elements such as hardscape, benches, trash receptacles, pilasters/monuments, bus shelters, railing and decorative signage. The following options were developed with features and inspiration noted in the paragraphs to the right of each image.
Option 1 – Urban Vitality (11”x17” Exhibits Are Attached as an Appendix)
In Option #1, calm gray paving tone
forms the foundation, while colorful
furnishings, lighting, and artwork
bring movement and character to
the streetscape. Similar locations
where this theme has been
constructed include Los Angeles
(Downtown Arts District), Santa
Monica (Downtown 3rd Street
Promenade), Denver (RiNo
District), Washington D.C. (The
Wharf), and Boston (Seaport
District). Through color and artistic
expression, cultural traditions are
reimagined in a contemporary way
celebrating the
community’s heritage while infusing
it with a youthful, vibrant spirit.
Option 2 – Urban Serenity (11”x17” Exhibits Are Attached as an Appendix)
In Option #2, a palette of beige,
warm gray, and natural wood
tones create a calm and inviting
atmosphere, with soft textures
and tactile materials such as
wood, corten steel, and woven
details bringing a sense of
comfort and craftsmanship.
Layered planting adds richness
and depth, softening the urban
edges and creating a balance
between built form and nature.
Similar locations where this
theme has been constructed
include San Jose (Santana Row),
Walnut Creek (Downtown
/Broadway Plaza, Pasadena
(Playhouse District / Colorado
Blvd.), Brea (Downtown Birch St.
Promenade), and Los Angeles
(The Grove).
Option 3 – Contemporary Oriental (11”x17” Exhibits Are Attached as an Appendix)
Option #3 has subtle cultural
elements through paving, site
detailing, and material finishes to
enhance the continuity of the
streetscape. It reinterprets
traditional Eastern design with a
modern sensibility combining
natural stone, metal, and wood
tones to create balance and
authenticity. Similar locations
where this theme has been
constructed include San Gabriel
(Tawa Gateway at Valley Blvd.),
Los Angeles (Blossom
Plaza), Boston (Rose Fitzgerald
Kennedy Greenway), and San
Francisco (Rose Park Station,
Buchanan Mall). The result is a
contemporary urban environment
that honors its cultural roots while
embracing the energy of a new
generation.
Community Outreach activities to seek input on the developed alternatives.
Pop-Up Events: The Project team attended the City’s Monster Mash event on October 16, 2025and at the weekly Farmer’s Market on October 30, both at Barnes Park. Project promotional material, exhibits, and stations to conduct Public Survey No. 2 were included at both booths with the team connecting with over 300 (Monster Mash) and 60 (Farmers Market) community members.
Public Survey No. 2: A 10-question public survey in English, Spanish and Chinese languages was administered to the community from October 15, 2025 through November 14, 2025. The survey was accessible in print and electronic web-based formats via a link on the Project website and QR code compatible with mobile devices. Ultimately, 509 community members completed the survey that resulted in the data provided in Attachment No. 2.
Key Demographic Elements: Of the 509 survey responses, 400 were completed in English, 3 in Spanish and 103 in Chinese. Only 20% of the respondents (102) participated in Public Survey No. 1 with the remaining 80% (407) being new survey participants. Additionally, 8% work at or own a business and 2% own property along Garvey Avenue within the project limits so the survey was generally completed by adjacent residents and community members.
Lastly, over 78% of the respondents noted they rarely or never use public transit.
Door to Door Canvassing: Similar to previous efforts in better connecting with more business owners/employees and promotion of Public Survey No. 2, the Project team canvassed 294 addresses along Garvey Avenue between Atlantic Avenue and New Avenue. The team conducted discussions with 166 business owners/employees/customers and delivered project information post cards where occupants were not available. Primary concerns raised were to not impact on-street parking or reduce lanes (i.e. generally in favor of Alternative 1) with general support in all alternatives improving downtown walking areas and aesthetics.
Community Meetings: In-person meetings were held on November 10 and 14, 2025 at the Langley Senior Center. Graphics and presentation boards were utilized at each meeting with approximately 75 community members attending each meeting. A project presentation was provided to the City Economic & Business Development Commission (EBDC) summarizing the above data and information while also receiving feedback on project alternatives, architectural themes, and general project elements. EBDC’s concerns were generally concerning parking, impacts to businesses during construction and ways to attract more businesses to the downtown area and improvement of traffic flow.
It is recommended that the City Council consider:
• Approving the recommendation to proceed with Alternative 1 – Roadway Improvements with parking and general improvements consistent with all alternatives, and; • Approving bus / transit improvements to improving shelters, bus pads, and stop amenities, and
• Approving Director recommendation to utilize the Option 2 – Urban Serenity as inspiration for the Architectural Theme for the improvements associated with Garvey Avenue.
Strategic Plan Goal:
The proposed project meets the strategic goal of strengthening the City’s local economy and
enhancing housing opportunities by implementing the following objectives of implanting the economic development strategic plan, and support local businesses. In addition, it meets the goal of maintaining, building and modernizing the City’s infrastructure and facilities to support the current and future needs of the City and community with the objective of prioritizing the objective of using the 710 funding for transit and mobility improvements.
Fiscal Impact:
The proposed project is budgeted in the 2025-2026 fiscal year Capital Improvement Program under CIP 96052.
Attachments:
1. Survey Results and Alternatives
ATTACHMENT 1
Survey #1 Results
Staff Report
December 17, 2025
1: What is your relation to Garvey Ave?
I am a resident of Monterey Park
I travel within the project limits frequently
I shop or go to appointments within the project limits
I attend community/retail events within the project limits I work or own a business within the project limits
I am an owner of property within the project limits
65%
58%
55%
8%
9%
54%
2: How often do you
walk or bike along
Garvey Ave
between
New Ave and
Atlantic Blvd?
3: How often do you
use the bus/public
transit along
Garvey Ave
between
New Ave and
Atlantic Blvd?
4: What is a priority for you along
Garvey Ave between New Ave and
Atlantic Blvd?
Adding walking areas and improving pedestrian mobility
Adding site amenities
Maintaining two roadway lanes each direction
Adding new bike lanes/improving bicycle mobility
Improving bus / transit facilities
Keeping on-street parking
Improved lighting
None of the above
Other
53%
38%
46%
34%
30%
24%
21%
3%
6%
5: What is your level of support for
installing raised medians which improve
pedestrian crossing safety and reduce
vehicular conflict areas, but may limit
vehicular access?
Helping Shape the Future of Garvey Avenue! Your feedback to reflect the needs and priorities of the community. 24%
16%
22%
23%
Very Often
Rarely
Sometimes
Often
15%
Never
42%
Sometimes
25%
Rarely
12%
Very Often
11%
Often
10%
Never
57%
I like
this idea.
27%
It depends
on where
they go.
10%
I’d rather
not have
them.
I’m not
sure yet.
7%
2%
8%
23%
27%
18%
11%
6: When shopping
or dining along
similar corridors,
what form of
parking and
accessibility
would you
prefer?
74%
Parking Garage/Structure
within Walking Distance
22%
On-Street
Parking
4% Other
7: What improvements would you like
to see incorporated and where along
Garvey Ave between New Ave and
Atlantic Blvd?
Pedestrian and bike safety improvements
Street trees, shade, and beautification
Enhanced bus stops and public transit
Modern storefronts and vibrant local businesses
Parking structures and improved traffic management
Cleanliness and security
Public gathering and community identity spaces
9: What is your age range?
18 or younger
19-24
25-34
35-44
45-54
55-64
65-74
75 or older
Prefer not to say
6%
4%
1%
8: How do you typically receive information
about your community?
Internet
Word-of-Mouth
Mail
Facebook
Instagram
Twitter (X)
65%
58%
55%
8%
9%
54%
11: What ethnic group do you consider
yourself a part of or feel closest to?
Asian
Latino/Hispanic
White
Black or African American
Pacific Islander
American Indian/Alaska Native
Middle Eastern
Mixed Heritage
Prefer not to answer
59%
18%
14%
2%
0.5%
0.25%
0.25%
3%
3%
88%
10%
0.5%
0.33%
0.33%
0.33%
10: What is your preferred language?
English
Chinese
Spanish
Greek
Burmese
Filipino
Prefer not to say
0.5%
ATTACHMENT 2
Survey #2 Results
Staff Report
December 17, 2025
2: What is your relation to Garvey Ave?
I am a resident of Monterey Park
I travel within the project limits frequently
I shop or go to appointments within the project limits
I attend community/retail events within the project limits I work or own a business within the project limits
I am an owner of property within the project limits
29.7%
23.8%
19.7%
1.8%
5.8%
19.2%
3: How often do you
walk or bike along
Garvey Ave
between
New Ave and
Atlantic Blvd?
4: How often do you
use the bus/public
transit along
Garvey Ave
between
New Ave and
Atlantic Blvd?
Helping Shape the Future of Garvey Avenue! Your feedback to reflect the needs and priorities of the community.
16.8%
Sometimes
17.5%
Rarely
4.2%
Very Often
7.4%
Often
54.1%
Never
1: Did you participate in the previous survey?
Yes
No
20.5%
79.5%
26.6%
Never
24.2%
Sometimes
15.9% 21.2%
RarelyOften
12.1%
Very Often
5. Based upon initial results of our public survey and outreach efforts for this project, we have identified the following three Garvey Avenue street configuration alternatives. Of these three, which one would you support? Alternative 1
Sidewalk Widening Only
Alternative 2
Bus Rapid Transit (BRT)
Alternative 3
Class II Buffered Bike Lane
GARVEY AVENUE | ATLANTIC BLVD TO LINCOLN AVE
GARVEY AVENUE | ATLANTIC BLVD TO NEW AVE
GARVEY AVENUE | ATLANTIC BLVD TO NEW AVE
32% 20% 39%
6. The following are 3 preliminary architectural and beautification inspiration boards to assist in identifying site amenities, architectural features, hardscape treatment, and aesthetic features to implement along Garvey Avenue.
Of these three, which one would you support?
19%
47%
31%
4.9%
6.9%
23.5%
27.8%
18.8%
11.4%
18 or younger
19-24
25-34
35-44
45-54
55-64
65-74
75 or older
Prefer not to say
3.3%
2.0%
1.4%
8: How do you typically receive information
about your community?
Internet
Word-of-Mouth
Mail
Facebook
Instagram
Twitter (X)
Other
17.8%
15.8%
27.1%
1.7%
16.6%
16.1%
Asian
Latino/Hispanic
White
Black or African American
Pacific Islander
American Indian/Alaska Native
Middle Eastern
Mixed Heritage
Prefer not to answer
66.2%
19.2%
8.3%
1.1%
0.5%
0.5%
0%
2.2%
2.8%
93.8%
4.6%
1.3%
0%
0%
0.3%
English
Chinese
Spanish
Korean
Armenian
Other
Prefer not to say
0%
177
132
29 24
18 10
91754
91755
91770
91803
91801
91776
90640
5 7: What is your home zip code?
91790
91732
90022
91775
90033
91748
92620
2 5
5 4
4 3
3 3
90063
91780
92733
91030
91006
91744
Other
3 3
2 2
2 9: What is your age range?
10: What is your preferred language?
11: What ethnic group do you consider
yourself a part of or feel closest to?
33 4.9%
Helping Shape the Future of Garvey Avenue! Your feedback to reflect the needs and priorities of the community.
ATTACHMENT 3
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December 17, 2025
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City Council Staff Report
Date: December 17, 2025
Agenda Item Number: 9.A.
To: The Honorable Mayor and City Council
From: Inez Alvarez, City Manager
Karl Berger , City Attorney
Subject: Council Protocols
Recommendation:
It is recommended that the City Council consider:
1. Receiving and filing this report. No action is required.
2. Taking such additional, related, action that may be desirable.
Executive Summary:
On February 17, 2021, the City Council adopted Resolution No. 12226, establishing the City Council’s meeting protocols. A copy of the staff report and resolution are attached for reference.
The City Council meeting agendas – and those of every other City board, committee or commission – are being updated to reflect these protocols.
Background:
N/A
Strategic Plan Goal:
N/A
Fiscal Impact:
N/A
Attachments:
1. 02-17-2021 Agenda Item 5C - Resolution Establishing Rules for Conducting City Council Meetings
Gity Gouncil Staff Report
DATE: February 17,2021
AGENDA ITEM NO:
TO:
FROM
The Honorable City Council
Vincent D. Chang, City Clerk
SUBJECT: Consideration and possible action to adopt a Resolution Establishing Rules for Conducting City Council Meetings in accordance with Government Code S 36813.
RECOMMENDATION:
It is recommended that the City Council consider:
1. Adopting a Resolution amending the City Council's existing policies and procedures to amend the City Council meeting policies and procedures to, among other things, replace "Robert's Rules of Order" with "Rosenberg's Rules of Order" for parliamentary procedure; and
2. Taking such additional, related action that may be desirable
FISCAL IMPACT
There is no fiscal impact as a result of this action.
DISCUSSION
lf adopted, the draft resolution would establish general requirements for public meetings held by the City Council and its subordinate boards and commissions. While there are existing City Council policies and procedures, these have not been comprehensively revised since 2013. Among other things, the draft resolution clarifies that the Mayor is the presiding officer; that all public comments should be directed to the City Council; and establishes some of the more common parliamentary procedures for conducting local government meetings. This includes replacing the traditional "Robert's Rules of Order" with the "Rosenberg's Rules of Order" (published by the League of California Cities) that is more applicable to city councils (instead of multi-member governing bodies, e.g., the California Legislature). Some cities have already adopted such rules; most recently, the City of Santa Clarita in 2019. The draft resolution would apply to all boards and commissions unless those bodies adopted separate rules. ln that regard, the Planning Commission adopted substantially similar policies and procedures in 2020 (see attached).
New Business
Agenda Item 5-C
Staff Report
February 17,2021
Respectfully submitted
Chang,
Attachments:
1. Planning Commission Resolution No. 20-02
2. Draft Resolution including Rosenberg's Rules of Order
RESOLUTION NO. 12226
A RESOLUTION ESTABLISHING PROCEDURAL RULES FOR
CONDUCTING CITY COUNCIL MEETINGS.
BE IT RESOLVED by the Monterey Park City Council as follows:
SECTION 1: The City Council adopts the following procedural rules for conducting City Council meetings:
“RULES OF PROCEDURE
Rule 1: Authority
The City Council establishes these by-laws, entitled “Rules of Procedure,” for conducting its meetings. The following Rules become effect upon the City Council’s adoption and remain effective unless amended or superseded. These Rules are intended to comply with, the Ralph M.
Brown Act (Government Code §§ 54950-54962). The Brown Act will supersede any conflicting provision of the Rules.
Rule 2: General Rules
Rule 2.1: Public Meetings
All meetings (except closed sessions as provided by California law) of the Council are open to the public.
Rule 2.2: Rules of Order
A. City Council proceedings should be governed by common sense and good taste. Pursuant to applicable laws, including, without limitation, the Monterey Park Municipal Code, any issue of procedure relating to the conduct of a meeting or hearing not otherwise provided for in these Rules may be determined by the Mayor, subject to a vote of the entire Council.
In addition, the City Council may, upon majority vote, alter or modify any provision of this Policy when appropriate or desirable.
B. City Council proceedings are generally governed by Rosenberg’s Rules of Order on all matters pertaining to parliamentary law (attached as Exhibit “A,” and incorporated by reference). Notwithstanding Rosenberg’s Rules of Order, motions will be voted upon in the order in which they are made.
Moreover, nothing prevents the City Council expressly adopting a rule or procedure that may be inconsistent with Rosenberg’s Rules of Order. No City Council action can be invalidated, or the legality of otherwise affected, by the failure or omission to observe or follow Rosenberg’s Rules of Order or any other City Council approved rule of procedure.
C. These Rules are adopted to expedite the City Council’s business transactions in an orderly fashion and are procedural only. Failure to strictly observe these rules will not affect the Council’s jurisdiction or invalidate any Council action conforming with applicable law.
D. The Council will abide by those Rules of Decorum that may be adopted by the City Council for use by its boards, Councils, and committees.
Rule 2.3: Quorum
Three members of the Council constitute a quorum. Should less than a quorum be in attendance, the City Clerk will list the attendees in the minutes, and they will adjourn the meeting to a later set time. In the event no members of the Council are present the City Clerk will adjourn the meeting to a later set time pursuant to Government Code § 54955.
Rule 2.4: Vote
A majority of a quorum is required to transact business except that three affirmative votes of the Council's members are required to approve the following substantive applications: General Plan Amendments and Amendments to the MPMC, Zone Changes, Variances, Conditional Use Permits, Prezoning for Annexations, Subdivision Maps, and Parcel Maps.
If a motion to approve a substantive matter fails because it does not receive three affirmative votes, the matter will be automatically continued to the next regular City Council meeting. If the substantive matter is neither approved nor denied at the next regular meeting, the project is deemed denied unless the applicant requests an additional vote at the next regular meeting. No appeal fee will be charged for an appeal required as a result of a tie vote or due to the lack of four affirmative votes to approve a matter which is not subsequently denied.
Rule 2.5: Minutes of Proceedings
The City Clerk will record an account of all public proceedings of the City Council into the Council’s official minutes. These minutes will become public record after Council approval.
Rule 2.6: Right of Floor
Councilmembers wishing to speak must first be recognized by the Mayor and, with the exception of City Communications, limit any remarks to the agenda matter being considered.
Rule 2.7: City Manager
The City Manager will attend all meetings of the Council unless excused.
In his/her absence, the City Manager will designate an Acting City Manager to attend. The City Manager may make recommendations and has the right to take part in all City Council discussions of the Council but cannot vote.
Rule 2.8: City Attorney
The City Attorney or designee should attend all meetings of the Council.
The City Attorney, or designee, upon request, may give opinions, either written or oral, on questions of law and act as the Council’s parliamentarian.
Rule 2.9: City Clerk
The City Clerk will attend all meetings of the Council unless excused. The City Clerk will record, prepare, and maintain the Council’s official record and perform other related duties as prescribed by the Council and/or City Manager.
Rule 3: Mayor – Duties
Rule 3.1: Presiding Officer
The Mayor, if present, will preside at all meetings. In the Mayor’s absence, the Vice Mayor will preside. In the absence of both, the Councilmembers present will select a Temporary Presiding Officer by majority vote.
Rule 3.2: Call to Order
The Mayor or Vice Mayor will bring the meeting to order at the time noticed in accordance with applicable law. In the absence of both, the meeting will be called to order by the City Clerk.
Rule 3.3: Point of Order
The Mayor will determine all points of order, subject to the right of any Councilmember to appeal to a vote of a majority of the quorum.
Rule 3.4: Motion to Be Stated
The Mayor will state all motions submitted for a vote and announce the result. A roll call vote must be taken upon the request of any Councilmember.
Rule 4: Preparation of Agenda
Rule 4.1: Agenda Preparation
The Agenda will be prepared in accordance with the procedure directed by the City Manager. The Agenda should be delivered to the Mayor and Councilmembers by 5:00 p.m. on the Friday before the Council’s regular Wednesday meeting. In the event of a Special Meeting, Agendas should be delivered as promptly as is practicable.
Rule 4.2: Minutes
Unless requested by a majority of the quorum, minutes may be approved without reading.
Rule 4.3: Consent Calendar
Items listed under the Consent Calendar are those items the City Manager believes will not require Council discussion and are routine in content.
Also listed under the Consent Calendar are resolutions confirming action from a previous meeting which are brought back for approval of form rather than approval of action. Items may be pulled for separate discussion or clarification at any Councilmember’s request, or upon receipt of a written request for public comment on the item.
Rule 4.4: City Communications
Items of interest that are not on the Agenda, such as conference or meeting reports, may be discussed under this item. No action, other than to “receive or refer to staff” may be taken.
Rule 4.5: Actions Limited to Posted Agenda
The City Council cannot take action on any item not appearing on the posted Agenda except under the conditions permitted by Government Code § 54954.2.
Rule 4.6: Future Agenda Items
Each Agenda will include an Agenda item entitled “Future Agenda Items.” During this section of the Agenda any Councilmember may make a motion only to place an item on a future Agenda. The motion is non-debatable.
Placement of an item on a future Agenda requires a majority vote. The City Manager has discretion as to when the item will be placed on the Agenda, unless otherwise directed by the City Council.
Rule 5: Citizens’ Rights
Rule 5.1: Addressing the Council
A. Any person may address the Council under the following portions of the Agenda:
(1) Under the Public Comment portion of the Agenda.
(2) Public Hearings.
(3) With the consent of a majority of the quorum of the Council.
B. Persons seeking to address the Council must comply with the following:
(1) Members of the public may address the Council only on items within the subject-matter jurisdiction of the Council. A determination of whether an item is appropriate for discussion will be made by the Mayor with the Council’s consent and upon advice by the City Attorney or designee.
(2) Each person addressing the Council must submit such written information as the City Clerk may require for the record, step to the podium and give their name and address for the record.
(3) Each speaker is limited to five minutes on Public Comment and a total of five minutes on all other items on the Agenda. Exception - See Public Hearing Procedures under Section 7 and following.
(4) All remarks must be directed to the Mayor and Council as a body and not to any particular Councilmember.
(5) No person, other than Councilmembers and the person having the floor, are permitted to participate in the discussion except as otherwise requested by the Mayor.
(6) No question may be asked of Councilmembers or City staff except through the Mayor.
C. When any identifiable group of persons, as distinguished from the general public, seeks to address the Council on the same agenda item, the Mayor has the discretion to ask that the group select a spokesperson to address the Council. If additional issues are to be presented at the hearing by any other member of such group, the Mayor may limit the number of persons to address the Council to avoid unnecessary repetition of information presented to the Council.
Rule 5.2: Disrupting legal meetings
Any member of the public making disruptive remarks or who becomes disruptive while addressing the Council or attending the Council meeting so as to disrupt, disturb or otherwise impede the orderly conduct of the Council meeting will be removed forthwith by the Presiding Officer and barred from further audience before the Council at that meeting unless permission to continue is granted by a majority vote of the Council.
Rule 6: Document Preparation
Unless otherwise directed by the Council or City Manager, all documents must, before being placed on the Agenda, be approved as to form and legality by the City Attorney or designee. Such approval must be indicated by a signature on the last page of the document.
Rule 7: Procedures Regarding Public Hearings
Rule 7.1: Introduction
Mayor announces subject of the Public Hearing, confirms with the City Clerk that the Public Hearing was correctly noticed, and declares the Public Hearing open. Conflicts, if any, are declared and ex parte contacts, if any, are disclosed.
Rule 7.2: Staff and Written Material Presentation
A. Staff summary report and other written material included in the Agenda packet is received and filed. Written comments (e.g. protest) are noted for the record.
B. Written material not in the Agenda packet, if any, is received and filed.
C. Oral staff report, if any, is presented by staff member.
D. Staff responds to Councilmember questions.
Rule 7.3: Public Testimony
A. Purpose is to provide opportunity to interested persons wishing to support or oppose the matter being considered.
B. Mayor instructs members of the audience:
(1) To fill out a form prepared by the City Clerk;
(2) To speak from the podium;
(3) To give their name and address before speaking;
(4) That the time limit for each speaker is generally five minutes; and
(5) That repetition should be avoided.
C. The applicant/representative will normally speak first. Applicant/ representative presentation is limited to ten minutes, any portion of which can be used for rebuttal.
D. Questions by speakers will be noted and, if possible, answered before Council deliberation.
E. Following public testimony, the applicant/representative will have an opportunity for rebuttal.
Rule 7.4: Council Deliberation
A. After the Mayor determines that no other member of the audience wishes to speak, the City Council may deliberate.
B. The Council may ask questions of speakers for clarification.
C. Staff and/or Council answers prior speakers’ questions.
D. The Council makes a motion and debates.
Rule 7.5: Council Action
A. The Council may, at this time, continue the open Public Hearing.
(1) This should be done if any additional information is requested (e.g., a staff report).
(2) Continuing a Public Hearing to a specific date does not require additional notice.
B. Vote on the item.
C. Offer amendments or substitute motions allowing additional public comment.
D. Close the Public Hearing and continue the matter to a later date for a decision (note that no additional reports or testimony may be received if the Public Hearing has been closed).
Rule 8: Miscellaneous Rules
Rule 8.1: Silence
During a collective vote (Ayes and Nays), silence of any Councilmember denotes an affirmative vote.
Rule 8.2: Continuance of an Item
A. Continuance by a Councilmember.
Upon a Councilmember’s request and by majority vote, an item (not subject to a deadline) may be continued to the next agreed upon meeting.
B. Continuances Requested by Someone Not a Councilmember.
Anyone may request a continuance of an item and the Council, by majority vote, may grant a continuance.
Rule 8.3: Failure to Vote
Every Councilmember should vote unless disqualified by reason of a Conflict of Interest. If a member abstains because of a legal conflict of interest, he/she is not counted as part of the quorum and is not deemed to be voting.
If a member abstains for reasons other than a legal conflict of interest, he/she will be counted in establishing a quorum. Such an abstention will counted with the majority vote of the quorum unless there is no majority in which case it will not be counted as a vote.
Rule 8.4: Lost Motions
A lost motion is one that fails to receive the necessary number of votes to carry. To revive a lost motion at the same meeting, the proper action is a motion to reconsider.
Rule 8.5: Motion to Reconsider
A motion to reconsider any action taken by the Council may be made in accordance with the following:
A. The motion must be made by a Councilmember the majority vote, or, in the case of a lost motion, by any Councilmember and may be seconded by any Councilmember.
B. The motion must be made before the adjournment of the meeting at which the original action was taken.
C. The motion is debatable and has precedence over a pending motion.
D. Except as otherwise provided, if the action to be reconsidered is a Public Hearing item, it must be re-noticed in the event the motion to reconsider passes. Where it is clearly established that all interested members of the public are still present, the item may be reconsidered without further notice.
Rule 8.6: Tie Votes
If a tie vote occurs when a Member of the Council is absent, the item will be automatically continued once to the next regular meeting of the Council. Except in the event of an appeal to the Council, if a tie vote
occurs as a result of the abstention of a Councilmember, the motion is lost. If a tie vote on an appeal occurs as a result of the abstention of a Councilmember, the appeal is deemed denied.
Rule 8.7: Changing the Vote
A Councilmember may change his/her vote only if the change is made immediately following the announcement of the vote by the Mayor and before the next agenda item is announced.
Rule 8.8: Abstention
A Councilmember who publicly announces that he/she is abstaining from voting on a particular matter will not subsequently be allowed to withdraw the abstention.
Rule 8.9: Presentation of Evidence
A. Oral Evidence
Oral evidence may be taken on oath or affirmation if requested by the Council.
B. Exhibits and Documents
Documentary evidence, exhibits, written communications, and documents used and relied upon by the Council during Council meetings must be made part of the record.
C. Communications and Petitions
All communications and petitions must be read aloud either in full or in summary. A reading in full must be made at the request of a majority of the Council. All such communications and petitions may be placed into evidence at the Council’s discretion.
D. Staff Reports
A written staff report should be prepared and orally reviewed as part of the staff presentation. Such report is evidence and part of the record.
E. Large Maps and Displays
Large size maps and displays presented for use at the hearing should be displayed in full view of the Council. When practicable, such maps or displays, or their authentic reductions, will be placed into the record.
F. Admissible Evidence
A Public Hearing need not be conducted according to legal rules of evidence. Any relevant evidence may be accepted if it relevant and the type of evidence upon which reasonable persons rely upon in conducting serious affairs. Irrelevant and unduly repetitious evidence will be excluded.
Rule 8.10: Personal Privilege
The right of a Councilmember to address the Council on a question of personal privilege is limited to cases where the integrity, character, or motives of the Councilmember is in question or where the Council’s welfare is concerned. The Councilmember may not interrupt the speaker, however, until recognized by the Mayor.
Rule 8.11: Protests
Any Councilmember has the right to enter into public record reasons for dissent or protests against any motion carried by the majority.
Rule 9: Rules of Debate
Rule 9.1: Mayor as Presiding Officer
The Mayor may move, second, and debate from the Chair, retains all rights and privileges of a Councilmember.
Rule 9.2: Appeals
Any ruling of the Mayor may be appealed at the request of any Councilmember. The Mayor must call for a roll call vote to determine if the ruling is upheld.
Rule 9.3: Motions
A motion may be debated by the Council after it is made. During debate, any Member of the Council may “Call for a second.” If a second is not forthcoming, the motion dies for lack of a second. If the motion is seconded, the debate may continue.
Rule 10: Adjournment
At 11:00 p.m., if the business has not concluded, the Mayor will poll all Councilmembers and upon majority vote, the meeting will be extended for a maximum of one hour. If business has not been concluded after a
subsequent hour, the meeting may be further extended by one-hour increments upon a majority vote.
Rule 11: Amendment/Suspension
The Council may amend or suspend these rules at any time upon majority vote of the Council.
Rule 12: Certificates and Proclamations
Rule 12.1: Presentation of Certificates and Proclamations
Presentation of Certificates of Achievement, Appreciation, Recognition, and so forth, will be publicly presented on Tuesday evenings at a special meeting scheduled for 6:00 p.m. and conclude by 6:45 p.m. These meetings are not regular meetings; they are special meetings. Requests for such meetings must be made to the City Manager at least seven days before the requested date.
Rule 12.2: Time Allotment for Certificate Presentations
To provide an equitable time allotment for each Councilmember to present his/her certificates, each Councilmember has accorded nine minutes to conduct his/her presentation(s).
In the event a Councilmember does not wish to use his/her time to conduct a presentation(s), his/her time allotment will then be equally distributed to the remaining Councilmembers, with a maximum time allotment of 15 minutes per Councilmember.
Rule 12.3: Presentations Concerning City-Sponsored Events
The Mayor or Presiding Officer will conduct all presentations concerning events, groups, individuals, and organizations that are sponsored all, or in part, by the City of Monterey Park and/or affiliated with the City of Monterey Park.
Rule 12.4: Proclamation Presentations
The Mayor or Presiding Officer will conduct presentations concerning the announcements of an official position of the City Council at the regularly scheduled City Council meetings commencing at 6:30 p.m.
Rule 12.5: Certificate and Proclamation Signatures
Certificates and proclamations scheduled for City Council regular meeting presentations must include the signatures of all Council Members.
For specific events and galas in which a Councilmember(s) has been invited to attend:
1. One Councilmember is invited – the certificate requires only the attendee’s signature.
2. If more than one Councilmember is invited and/or attending a specific event, the certificate requires the signature of all Councilmembers.
Rule 12.6: Specific Events – Requests for Certificates
To ensure timely and appropriate completion of certificates and to avoid duplication of certificate preparation, all requests for certificates should be provided to the City Manager’s executive assistant.”
SECTION 2: Technology Protocols. This Resolution adopts the “Technology Protocols” promulgated by the City Clerk’s office on or about March 31, 2020 attached as Exhibit “B,” and incorporated by reference. These Technology Protocols will continue in effect until the cessation of the COVID-19 Pandemic as determined either by the State of California or a subsequent City Council resolution. Upon termination of the Pandemic, the Technology Protocols will be of no further force or effect.
SECTION 3: Supersession. This Resolution supersedes all previous resolutions purporting to establish rules and procedures for conducting City Council meetings. Accordingly, those resolutions are rendered moot upon adoption of this Resolution and are repealed.
SECTION 4: Severability. If any part of this Resolution or its application is deemed invalid by a court of competent jurisdiction, the City Council intends that such invalidity will not affect the effectiveness of the remaining provision or application and, to this end, the provisions of this Resolution are severable.
SECTION 5: Electronic Signatures. This Resolution may be executed with electronic signatures in accordance with Government Code §16.5. Such electronic signatures will be treated in all respects as having the same effect as an original signature.
SECTION 6: Recordation. The Mayor, or presiding officer, is authorized to sign this Resolution signifying its adoption by the City Council of the City of Monterey Park and the City Clerk, or her duly appointed deputy, may attest thereto.
SECTION 7: Effective Date. This Resolution will become effective immediately upon adoption and will remain effective unless repealed or superseded.
PASSED AND ADOPTED this 17th of February, 2021.
Yvonne Yiu, Mayor
Attest:
Vincent D. Chang, City Clerk
State of California )
County of Los Angeles) ss.
City of Monterey Park )
I, Vincent D. Chang, City Clerk of the City of Monterey Park, California, do hereby certify that the foregoing Resolution No. 12226 was duly and regularly adopted by the City Council of the City of Monterey Park at a regular meeting held on the 17 th
day of February, 2021, by the following vote:
Ayes: Council Members: Chan, Liang, Sornoso, Lo, Yiu
Noes: Council Members: None
Absent: Council Members: None
Abstain: Council Members: None
Dated this 17
th day of February, 2021.
Vincent D. Chang, City Clerk
Monterey Park, California
Approved as to Form:
Karl H. Berger, City Attorney
Rosenberg’s Rules of Order:
Simple Parliamentary
Procedures for the 21st Century
by Dave Rosenberg
he rules of procedure at meetings
should be simple enough for most
people to understand. Unfortunately,
that hasn’t always been the case. Virtu-
ally all clubs, associations, boards, coun-
cils and bodies follow a set of rules,
Robert’s Rules of Order, which are em-
bodied in a small but complex book.
Virtually no one I know has actually
read this book cover to cover.
Worse yet, the book was written for
another time and purpose. If you are
running the British Parliament, Robert’s
Rules of Order is a dandy and quite use-
ful handbook. On the other hand, if
you’re running a meeting of a five-
member body with a few members of
the public in attendance, a simplified
version of the rules of parliamentary
procedure is in order. Hence, the birth
of “Rosenberg’s Rules of Order.”
This publication covers the rules of
parliamentary procedure based on my
20 years of experience chairing meetings
in state and local government. These
rules have been simplified and slimmed
down for 21st century meetings, yet
they retain the basic tenets of order to
which we are accustomed.
“Rosenberg’s Rules of Order” are sup-
ported by the following four principles:
1. Rules should establish order. The
first purpose of the rules of parlia-
mentary procedure is to establish a
framework for the orderly conduct
of meetings.
2. Rules should be clear. Simple rules
lead to wider understanding and
participation. Complex rules create
two classes: those who understand
and participate and those who do
not fully understand and do not
fully participate.
3. Rules should be user-friendly. That
is, the rules must be simple enough
that citizens feel they have been able
to participate in the process.
4. Rules should enforce the will of
the majority while protecting the
rights of the minority. The ultimate
purpose of the rules of procedure is
to encourage discussion and to facili-
tate decision-making by the body. In
a democracy, the majority rules. The
rules must enable the majority to
express itself and fashion a result,
while permitting the minority to also
express itself (but not dominate) and
fully participate in the process.
The Chairperson Should Take a
Back Seat During Discussions
While all members of the governing
body should know and understand the
rules of parliamentary procedure, it is
the chairperson (chair) who is charged
with applying the rules of conduct.
The chair should be well versed in those
rules, because the chair, for all intents
and purposes, makes the final ruling on
the rules. In fact, all decisions by the
chair are final unless overruled by the
governing body itself.
Because the chair conducts the meeting,
it is common courtesy for the chair to
take a less active role than other mem-
bers of the body in debates and discus-
sions. This does not mean that the chair
should not participate in the debate or
discussion. On the contrary, as a mem-
ber of the body, the chair has full rights
to participate in debates, discussions
and decision-making. The chair should,
however, strive to be the last to speak at
the discussion and debate stage, and
should not make or second a motion
unless he or she is convinced that no
other member of the body will do so.
The Basic Format for an
Agenda Item Discussion
Formal meetings normally have a written,
published agenda; informal meetings
may have only an oral or understood
agenda. In either case, the meeting is
governed by the agenda and the agenda
constitutes the body’s agreed-upon road
map for the meeting. And each agenda
item can be handled by the chair in the
following basic format.
First, the chair should clearly announce
the agenda item number and should
clearly state what the subject is. The
chair should then announce the format
that will be followed.
There are exceptions to the general rule of free
and open debate on motions. The exceptions all
apply when there is a desire to move on.
Second, following that agenda format,
the chair should invite the appropriate
people to report on the item, including
any recommendation they might have.
The appropriate person may be the
chair, a member of the governing body,
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Rosenberg’s Rules of Order: Simple Parliamentary Procedure for the 21st Century
a staff person, or a committee chair
charged with providing information
about the agenda item.
Third, the chair should ask members
of the body if they have any technical
questions for clarification. At this point,
members of the governing body may ask
clarifying questions to the people who
reported on the item, and they should
be given time to respond.
Fourth, the chair should invite public
comments or, if appropriate at a formal
meeting, open the meeting to public
input. If numerous members of the pub-
lic indicate a desire to speak to the sub-
Eighth, the chair should now invite dis-
cussion of the motion by the members
of the governing body. If there is no
desired discussion or the discussion has
ended, the chair should announce that
the body will vote on the motion. If
there has been no discussion or a very
brief discussion, the vote should proceed
immediately, and there is no need to re-
peat the motion. If there has been sub-
stantial discussion, it is normally best to
make sure everyone understands the
motion by repeating it.
Motions are made in a simple two-step
process. First, the chair recognizes the
member. Second, the member makes a
motion by preceding the member’s
desired approach with the words: “I
move …” A typical motion might be:
“I move that we give 10 days’ notice in
the future for all our meetings.”
The chair usually initiates the motion by:
1. Inviting the members to make a
motion: “A motion at this time
would be in order.”
ject, the chair may limit the time of each
public speaker. At the conclusion of the
public comments, the chair should ann-
ounce that public input has concluded
(or that the public hearing, as the case
may be, is closed).
Debate on policy is healthy; debate on personalities
is not. The chair has the right to cut off discussion
that is too personal, too loud or too crude.
Fifth, the chair should invite a motion
from the governing body members. The
chair should announce the name of the
member who makes the motion.
Sixth, the chair should determine if any
member of the body wishes to second
the motion. The chair should announce
the name of the member who seconds
the motion. It is normally good practice
for a motion to require a second before
proceeding with it, to ensure that it is
not just one member of the body who
is interested in a particular approach.
However, a second is not an absolute
requirement, and the chair can proceed
with consideration and a vote on the
motion even when there is no second.
This is a matter left to the discretion
of the chair.
Seventh, if the motion is made and sec-
onded, the chair should make sure every-
one understands the motion. This is
done in one of three ways:
1. The chair can ask the maker of the
motion to repeat it;
2. The chair can repeat the motion; or
3. The chair can ask the secretary
or the clerk of the body to repeat
the motion.
Ninth, the chair takes a vote. Simply
asking for the “ayes” and then the “nays”
is normally sufficient. If members of the
body do not vote, then they “abstain.”
Unless the rules of the body provide
otherwise or unless a super-majority is
required (as delineated later in these
rules), a simple majority determines
whether the motion passes or is defeated.
Tenth, the chair should announce the
result of the vote and should announce
what action (if any) the body has taken.
In announcing the result, the chair
should indicate the names of the mem-
bers, if any, who voted in the minority
on the motion. This announcement
might take the following form: “The
motion passes by a vote of 3-2, with
Smith and Jones dissenting. We have
passed the motion requiring 10 days’
notice for all future meetings of this
governing body.”
Motions in General
Motions are the vehicles for decision-
making. It is usually best to have a mot-
ion before the governing body prior to
discussing an agenda item, to help every-
one focus on the motion before them.
2. Suggesting a motion to the members:
“A motion would be in order that we
give 10-days’ notice in the future for
all our meetings.”
3. Making the motion.
As noted, the chair has every right as a
member of the body to make a motion,
but normally should do so only if he or
she wishes a motion to be made but no
other member seems willing to do so.
The Three Basic Motions
Three motions are the most common:
1. The basic motion. The basic motion
is the one that puts forward a deci-
sion for consideration. A basic mot-
ion might be: “I move that we create
a five-member committee to plan
and put on our annual fundraiser.”
2. The motion to amend. If a member
wants to change a basic motion that
is under discussion, he or she would
move to amend it. A motion to
amend might be: “I move that we
amend the motion to have a 10-
member committee.” A motion to
amend takes the basic motion that is
before the body and seeks to change
it in some way.
2 League of California Cities
Rosenberg’s Rules of Order: Simple Parliamentary Procedure for the 21st Century
3. The substitute motion. If a member
wants to completely do away with
the basic motion under discussion
and put a new motion before the
governing body, he or she would
“move a substitute motion.” A substi-
tute motion might be: “I move a sub-
stitute motion that we cancel the
annual fundraiser this year.”
Motions to amend and substitute mo-
tions are often confused. But they are
quite different, and so is their effect,
if passed.
A motion to amend seeks to retain the
basic motion on the floor, but to modify
it in some way.
A substitute motion seeks to throw out
the basic motion on the floor and substi-
tute a new and different motion for it.
The decision as to whether a motion is
really a motion to amend or a substitute
motion is left to the chair. So that if a
member makes what that member calls a
motion to amend, but the chair deter-
mines it is really a substitute motion, the
chair’s designation governs.
When Multiple Motions Are Before
The Governing Body
Up to three motions may be on the floor
simultaneously. The chair may reject a
fourth motion until the three that are on
the floor have been resolved.
First, the chair would deal with the
third (the last) motion on the floor, the
substitute motion. After discussion and
debate, a vote would be taken first on
the third motion. If the substitute
motion passes, it would be a substitute
for the basic motion and would elimi-
nate it. The first motion would be moot,
as would the second motion (which
sought to amend the first motion), and
the action on the agenda item would be
complete. No vote would be taken on
the first or second motions. On the
other hand, if the substitute motion (the
third motion) failed, the chair would
proceed to consideration of the second
(now the last) motion on the floor, the
motion to amend.
If the substitute motion failed, the
chair would then deal with the second
(now the last) motion on the floor,
the motion to amend. The discussion
and debate would focus strictly on the
amendment (should the committee be
five or 10 members). If the motion to
amend passed, the chair would now
move to consider the main motion (the
first motion) as amended. If the motion
to amend failed, the chair would now
move to consider the main motion
(the first motion) in its original format,
not amended.
To Debate or Not to Debate
The basic rule of motions is that they
are subject to discussion and debate.
Accordingly, basic motions, motions to
amend, and substitute motions are all
eligible, each in their turn, for full dis-
cussion before and by the body. The
debate can continue as long as members
of the body wish to discuss an item, sub-
ject to the decision of the chair that it is
time to move on and take action.
There are exceptions to the general rule
of free and open debate on motions. The
exceptions all apply when there is a
desire of the body to move on. The fol-
lowing motions are not debatable (that
is, when the following motions are made
and seconded, the chair must immedi-
ately call for a vote of the body without
debate on the motion):
A motion to adjourn. This motion, if
passed, requires the body to immediately
adjourn to its next regularly scheduled
meeting. This motion requires a simple
majority vote.
A motion to recess. This motion, if
passed, requires the body to immediately
take a recess. Normally, the chair deter-
mines the length of the recess, which
may range from a few minutes to an
hour. It requires a simple majority vote.
When two or three motions are on the
floor (after motions and seconds) at
the same time, the first vote should be
on the last motion made. So, for exam-
ple, assume the first motion is a basic
“motion to have a five-member commit-
tee to plan and put on our annual fund-
raiser.” During the discussion of this
The challenge for anyone chairing a public meet-
ing is to accommodate public input in a timely
and time-sensitive way, while maintaining steady
progress through the agenda items.
motion, a member might make a second
motion to “amend the main motion to
have a 10-member committee, not a
five-member committee, to plan and
put on our annual fundraiser.” And per-
haps, during that discussion, a member
makes yet a third motion as a “substitute
motion that we not have an annual
fundraiser this year.” The proper proce-
dure would be as follows.
Third, the chair would now deal with
the first motion that was placed on the
floor. The original motion would either
be in its original format (five-member
committee) or, if amended, would be in
its amended format (10-member com-
mittee). And the question on the floor
for discussion and decision would be
whether a committee should plan and
put on the annual fundraiser.
A motion to fix the time to adjourn.
This motion, if passed, requires the body
to adjourn the meeting at the specific
time set in the motion. For example, the
motion might be: “I move we adjourn
this meeting at midnight.” It requires a
simple majority vote.
A motion to table. This motion, if
passed, requires discussion of the agenda
item to be halted and the agenda item to
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Rosenberg’s Rules of Order: Simple Parliamentary Procedure for the 21st Century
be placed on “hold.” The motion may
contain a specific time in which the
item can come back to the body: “I
move we table this item until our regu-
lar meeting in October.” Or the motion
may contain no specific time for the
return of the item, in which case a
motion to take the item off the table
and bring it back to the body will have
to be taken at a future meeting. A
motion to table an item (or to bring it
back to the body) requires a simple
majority vote.
A motion to limit debate. The most
common form of this motion is to say:
“I move the previous question” or “I
move the question” or “I call for the
question.” When a member of the body
makes such a motion, the member is
really saying: “I’ve had enough debate.
Let’s get on with the vote.” When such
a motion is made, the chair should ask
for a second to the motion, stop debate,
and vote on the motion to limit debate.
The motion to limit debate requires a
two-thirds vote of the body. Note that a
motion to limit debate could include a
time limit. For example: “I move we
limit debate on this agenda item to
15 minutes.” Even in this format, the
the motion fails. If one member is ab-
sent and the vote is 3-3, the motion
still fails.
All motions require a simple majority,
but there are a few exceptions. The
exceptions occur when the body is
taking an action that effectively cuts
off the ability of a minority of the body
to take an action or discuss an item.
These extraordinary motions require a
two-thirds majority (a super-majority)
to pass:
Motion to limit debate. Whether a
member says, “I move the previous
question,” “I move the question,” “I
call for the question” or “I move to limit
debate,” it all amounts to an attempt to
cut off the ability of the minority to dis-
cuss an item, and it requires a two-thirds
vote to pass.
Motion to close nominations. When
choosing officers of the body, such as the
chair, nominations are in order either
from a nominating committee or from
the floor of the body. A motion to close
nominations effectively cuts off the right
of the minority to nominate officers,
and it requires a two-thirds vote
to pass.
pend the rules for a particular purpose.
For example, the body (a private club)
might have a rule prohibiting the atten-
dance at meetings by non-club mem-
bers. A motion to suspend the rules
would be in order to allow a non-club
member to attend a meeting of the club
on a particular date or on a particular
agenda item.
The Motion to Reconsider
There is a special and unique motion
that requires a bit of explanation all by
itself: the motion to reconsider. A tenet
of parliamentary procedure is finality.
After vigorous discussion, debate and
a vote, there must be some closure to
the issue. And so, after a vote is taken,
the matter is deemed closed, subject
only to reopening if a proper motion
to reconsider is made.
A motion to reconsider requires a
majority vote to pass, but there are
two special rules that apply only to
the motion to reconsider.
First is the matter of timing. A motion
to reconsider must be made at the meet-
ing where the item was first voted upon
or at the very next meeting of the body.
A motion to reconsider made at a later
time is untimely. (The body, however,
can always vote to suspend the rules
If you are running the British Parliament,
Robert’s Rules of Order is a dandy and quite
useful handbook.
and, by a two-thirds majority, allow a
motion to reconsider to be made at
another time.)
Second, a motion to reconsider may be
made only by certain members of the
body. Accordingly, a motion to recon-
motion to limit debate requires a two-
thirds vote of the body. A similar mot-
ion is a motion to object to consideration
of an item. This motion is not debatable,
and if passed, precludes the body from
even considering an item on the agenda.
It also requires a two-thirds vote.
Majority and Super-Majority Votes
In a democracy, decisions are made with
a simple majority vote. A tie vote means
the motion fails. So in a seven-member
body, a vote of 4-3 passes the motion. A
vote of 3-3 with one abstention means
Motion to object to the consideration
of a question. Normally, such a motion
is unnecessary, because the objectionable
item can be tabled or defeated straight
up. However, when members of a body
do not even want an item on the agenda
to be considered, then such a motion
is in order. It is not debatable, and it
requires a two-thirds vote to pass.
Motion to suspend the rules. This
motion is debatable, but requires a two-
thirds vote to pass. If the body has its
own rules of order, conduct or proce-
dure, this motion allows the body to sus-
sider may be made only by a member
who voted in the majority on the origi-
nal motion. If such a member has a
change of heart, he or she may make the
motion to reconsider (any other mem-
ber of the body may second the motion).
If a member who voted in the minority
seeks to make the motion to reconsider,
it must be ruled out of order. The pur-
pose of this rule is finality. If a member
of the minority could make a motion to
reconsider, then the item could be
brought back to the body again and
again, which would defeat the purpose
of finality.
4 League of California Cities
Rosenberg’s Rules of Order: Simple Parliamentary Procedure for the 21st Century
If the motion to reconsider passes, then
the original matter is back before the
body, and a new original motion is in
order. The matter may be discussed and
debated as if it were on the floor for the
first time.
It is usually best to have a motion before the gov-
erning body prior to discussing an agenda item,
to help everyone focus.
Courtesy and Decorum
The rules of order are meant to create
an atmosphere where the members of
the body and the members of the public
can attend to business efficiently, fairly
and with full participation. And at the
same time, it is up to the chair and the
members of the body to maintain com-
mon courtesy and decorum. Unless the
setting is very informal, it is always best
for only one person at a time to have
the floor, and it is always best for every
lege relate to anything that would inter-
fere with the normal comfort of the
meeting. For example, the room may
be too hot or too cold, or a blowing
fan might interfere with a person’s
ability to hear.
Order. The proper interruption would
be: “Point of order.” Again, the chair
would ask the interrupter to “state your
point.” Appropriate points of order
Withdraw a motion. During debate
and discussion of a motion, the maker
of the motion on the floor, at any time,
may interrupt a speaker to withdraw
his or her motion from the floor. The
motion is immediately deemed with-
drawn, although the chair may ask the
person who seconded the motion if
he or she wishes to make the motion,
and any other member may make the
motion if properly recognized.
Motions to amend and substitute motions are
often confused. But they are quite different, and
so is their effect, if passed.
Special Notes About Public Input
The rules outlined here help make meet-
ings very public-friendly. But in addi-
tion, and particularly for the chair, it is
wise to remember three special rules that
apply to each agenda item:
Rule One: Tell the public what the body
speaker to be first recognized by the
chair before proceeding to speak.
The chair should always ensure that
debate and discussion of an agenda item
focus on the item and the policy in ques-
tion, not on the personalities of the
members of the body. Debate on policy
is healthy; debate on personalities is not.
The chair has the right to cut off discus-
sion that is too personal, too loud or
too crude.
Debate and discussion should be fo-
cused, but free and open. In the interest
of time, the chair may, however, limit
the time allotted to speakers, including
members of the body. Can a member of
the body interrupt the speaker? The
general rule is no. There are, however,
exceptions. A speaker may be interrupt-
ed for the following reasons:
Privilege. The proper interruption
would be: “Point of privilege.” The chair
would then ask the interrupter to “state
your point.” Appropriate points of privi-
relate to anything that would not be
considered appropriate conduct of the
meeting; for example, if the chair moved
on to a vote on a motion that permits
debate without allowing that discussion
or debate.
Appeal. If the chair makes a ruling that
a member of the body disagrees with,
that member may appeal the ruling of
the chair. If the motion is seconded and
after debate, if it passes by a simple
majority vote, then the ruling of the
chair is deemed reversed.
Call for orders of the day. This is sim-
ply another way of saying, “Let’s return
to the agenda.” If a member believes that
the body has drifted from the agreed-
upon agenda, such a call may be made.
It does not require a vote, and when the
chair discovers that the agenda has not
been followed, the chair simply reminds
the body to return to the agenda item
properly before them. If the chair fails
to do so, the chair’s determination may
be appealed.
will be doing.
Rule Two: Keep the public informed
while the body is doing it.
Rule Three: When the body has acted,
tell the public what the body did.
Public input is essential to a healthy
democracy, and community participa-
tion in public meetings is an important
element of that input. The challenge for
anyone chairing a public meeting is to
accommodate public input in a timely
and time-sensitive way, while maintain-
ing steady progress through the agenda
items. The rules presented here for con-
ducting a meeting are offered as tools for
effective leadership and as a means of
developing sound public policy. ■
www.cacities.org 5
EXHIBIT B
TECHNOLOGY PROTOCOLS
CITY OF MONTEREY PARK
City Clerk’s Office
The City Clerk’s office is implementing the following technology meeting protocols on a temporary basis. These protocols are utilized in accordance with Executive Order No.
N-29-20 and Resolution No. 12142 in order to facilitate the City Council’s virtual meetings.
General Notice Regarding Virtual Meetings:
• All meetings of the City Council will be recorded including, without limitation, public comment.
• Such recordings will include the screen name of individuals who are part of the audience even if you choose not to provide public comment.
• Unless you are providing public comment, your audio will be muted and your video will be stopped.
• If you choose to provide public comment, the City Clerk will identify you, ask that you unmute your audio, and allow your video to be shared.
• Closed sessions of the City Council – if any – will not be recorded.
Public Communications:
The following applies to persons wishing to provide public communications regarding agenda items for either a regular meeting or a special meeting:
• At least 24 hours before a meeting, provide the City Clerk’s office with an email to [email protected] to be read into the record not longer than 50 words; OR
• At least 24 hours before a meeting, provide the City Clerk’s office with written correspondence -whether email or otherwise – that will be distributed to the City Council without being read into the record; OR
• At least 24 hours before a meeting, request to address the City Council electronically via audio/video; OR
• During the meeting, utilize the “raise hand” option to be recognized by the City Council at the public comment sections identified on the City Council agenda.
You will be recognized in the order that your “raise hand” was received; OR
• Public comment may be submitted via telephone during the meeting, before the close of public comment, by calling (877) 853-5247 or (888) 788-0099 and entering the published Zoom Meeting ID provided on the respective agenda then press pound (#). When prompted to enter participation ID number press pound (#) again. If participants would like to make a public comment they will enter “*9” then the Clerk’s office will be notified and you will be in the rotation to make a public comment.
For Regular Meetings: Public Comment regarding any item of public interest within the City Council’s subject-matter jurisdiction will be accepted in the “Public Comment” section of the City Council Agenda.
For Special Meetings: Government Code § 54954.3(a) allows the City to limit public comment to only matters listed on the agenda. No other public comment will be accepted.
Meeting Decorum:
• Persons wishing to be audience members to the meeting may do so anonymously.
Anonymous participants, however, will not be recognized for public comment.
• Persons with names that violate community standards, e.g., fighting words, will not be admitted into the meeting. The City’s host will notify those persons in the waiting room that they must either change their participation meeting or will not be allowed into the meeting.
• Persons will not be allowed rename themselves upon being admitted to the meeting from the “waiting room.”
• Persons who seek to by-pass the City’s host controls will be dropped from, and blocked, from the meeting.
City Council Staff Report
Date: December 17, 2025
Agenda Item Number: 9.B.
To: The Honorable Mayor and City Council
From: Laura Borjon, Finance Manager
Subject: Receive and File 2024-2025 Annual Comprehensive Financial Report
Recommendation:
It is recommended that the City Council consider:
1. Receiving and filing the City’s 2024-2025 Annual Comprehensive Financial Report (ACFR); and
2. Taking such additional, related, action that may be desirable.
Executive Summary:
The City’s auditor, The Pun Group LLP, an independent auditor and one of the nation’s leading certified public accounting (CPA) firms, completed the audit of the City’s annual financial statements for the fiscal year ending June 30, 2025. The audited financial statements are incorporated into an Annual Comprehensive Financial Report (ACFR).
This is the third year that the Pun Group is performing the annual audit of the City’s financial records. The auditor issued an unmodified (“clean”) opinion on the City’s financial statements.
An unmodified opinion indicates that the financial data of the City is fairly presented in accordance with generally accepted accounting principles (GAAP) in the United States of America and the standards are applicable to the financial audits contained in Government Audit Standards, issued by the Comptroller General of the United States. These standards require that the auditors plan and perform the audit to obtain reasonable assurance as to whether the financial statements are free of material misstatement and accurately reflect the City’s financial position. Additionally, the auditors’ report does not indicate any negative findings, internal control deficiencies, or instances of noncompliance with applicable laws and regulations.
Background:
The ACFR includes the financial information for all funds of the City. The Introductory Section of the report includes a table of contents, the organization chart, a transmittal letter, and financial awards. The Financial Section contains the independent auditor’s report, the management discussion and analysis (MD&A), the financial statements, notes to the financial
statements, and supplementary information. The Statistical Section provides financial trend and demographic data, which is useful for assessing the City’s financial condition. Users of the ACFR should read the financial statements in conjunction with the transmittal letter, MD&A, notes, and supplementary information to gain a full understanding of the City’s financial activities.
The City’s ACFR was prepared according to the Governmental Accounting Standard Board (GASB) Statement, and the government-wide financial statements provide information about the City’s overall financial status with the addition of long-term perspective. The focus is on the City as a whole organization, providing a comprehensive presentation of the City’s financial information from a commercial (private) business point of view. Full accrual accounting and information for capital assets (including infrastructure) and long-term obligations are required as part of the financial statements.
The City’s ACFR is submitted to the Government Financial Officer’s Association of the United States and Canada (GFOA) for consideration of Award of the Certificate of Achievement for Excellence in Financial Reporting. To receive the award, a government must publish an efficiently organized report that satisfies both GAAP and applicable laws and regulations. The City has received this award for 35 consecutive years and staff has again submitted the 2024- 2025 ACFR for award consideration.
On June 30, 2025, the City’s net position totaled $82.9 million in the Statement of Net Position, reflecting total assets and deferred outflow of resources for $328.2 million, and liabilities and deferred inflow of resources for $245.2 million. Net position serves as an indicator of a government’s financial position over time. The City’s financial results displayed a positive financial position.
On June 30, 2025, the City’s governmental funds reported combined fund balances of $82.9 million, which is an increase of $9.6 million from $73.3 million on June 30, 2024. The increase is related to increased revenues.
Among all governmental funds, the General Fund is a major governmental fund and the most important fund of the City. The General Fund’s balance increased by $4.6 million from $41.9 million on June 30, 2024 to $46.5 million as of June 30, 2025.
General Fund revenues have increased by $4 million from $70.2 million on June 30, 2024, to $74.2 million on June 30, 2025. The increase was due primarily to the collection of Measure BE business license tax and the collection of Measure LG transient occupancy tax. General Fund expenses and other financing uses increased $13.5 million from $56.7 million on June 30, 2024, to $70.2 million on June 30, 2025. In prior years, American Rescue Plan Act (APRA) funds paid for the salaries of part-time staff and supplemented the salary of public safety staff.
The one-time ARPA funds were fully expended by December of 2024, leaving the general fund to absorb the cost of part-time salaries and fully covering the salaries of public safety staff. In addition, the city expended $5 million more in capital outlay than in the prior year.
The following table details the General Fund balances breakdown:
GF Fund Balances as of June 30, 2025
Committed:
Catastrophic Event & Economic Development $ 13,726,927 Total Committed $ 13,726,927
Assigned:
Carryover POs and Capital Improvements $ 32,140,583 Total Assigned $ 32,140,583
Unassigned:
Unassigned $ 655,119
Total Unassigned $ 655,119
Total GF Fund Balances $ 46,522,629
The $46.5 million fund balance of the General Fund as of June 30, 2025, is comprised of $13.7 million committed, $32.1 million assigned, and $0.7 million unassigned.
Strategic Plan Goal:
The FY2024-2025 Annual Comprehensive Financial Report meets the strategic plan goal of maintaining fiscal stability of our city’s financial resources by providing an in-depth review of the city’s accounting and fiscal policies by an independent third-party.
Fiscal Impact:
There is no fiscal impact associated with receiving and filing the City’s 2024-2025 Annual Comprehensive Financial Report
Attachments:
1. Fiscal Year 2024-2025 Annual Comprehensive Financial Report
Staff Report
December 17, 2025
ATTACHMENT 1
Fiscal Year 2024-2025 Annual
Comprehensive Financial Report
CITY OF MONTEREY P ARK
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
2 0 2 4 - 2 0 2 5
City of Monterey Park
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Table of Contents
i
Page
INTRODUCTORY SECTION (Unaudited)
Table of Contents ........................................................................................................................................................... i Monterey Park City Officials ........................................................................................................................................ v Organizational Chart .................................................................................................................................................... vi Letter of Transmittal ................................................................................................................................................... vii GFOA Certificate of Achievement for Excellence in Financial Reporting ............................................................... xiii
FINANCIAL SECTION
Independent Auditor’s Report on the Audit of the Financial Statements ............................................................. 1
Management’s Discussion and Analysis (Required Supplementary Information) (Unaudited) ......................... 5
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position ..................................................................................................... ......................... 18 Statement of Activities ................................................................................................................................... 20
Fund Financial Statements:
Governmental Fund Financial Statements:
Balance Sheet .......................................................................................................................................... 26 Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position ......................................................................... 29 Statement of Revenues, Expenditures, and
Changes in Fund Balances ................................................................................................................ 30 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities ...................................................................................................................... 32
Proprietary Fund Financial Statements:
Statement of Net Position ........................................................................................................................ 34 Statement of Revenues, Expenses, and Changes in Net Position ............................................................ 37 Statement of Cash Flows ......................................................................................................................... 38
Fiduciary Fund Financial Statements:
Statement of Fiduciary Net Position ........................................................................................................ 43 Statement of Changes in Fiduciary Net Position ..................................................................................... 44
Notes to the Basic Financial Statements ........................................................................................................... 49
City of Monterey Park
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Table of Contents (Continued)
ii
Page
FINANCIAL SECTION (Continued)
Required Supplementary Information (Unaudited):
Schedule of Changes in the Net Pension Liability and Related Ratios CalPERS Miscellaneous Plan ...................................................................................................................... 102 CalPERS Safety Plan ................................................................................................................................... 104 Massachusetts Mutual Retirement Plan (“MMRP”) .................................................................................... 106
Schedule of Plan Contributions - Pensions
CalPERS Miscellaneous Plan ...................................................................................................................... 108 CalPERS Safety Plan ................................................................................................................................... 110 Massachusetts Mutual Retirement Plan (“MMRP”) .................................................................................... 112
Schedule of Changes in the Net OPEB Liability and Related Ratios .............................................................. 114
Schedule of Contributions – OPEB .................................................................................................................. 116
Budgetary Comparison Schedules
General Fund ................................................................................................................................................ 119 Grants Special Revenue Fund ...................................................................................................................... 120 Retirement/Pension Liability Special Revenue Fund ............................................................................. ..... 121 Housing Special Revenue Fund ................................................................................................................... 122
Notes to the Budgetary Comparison Schedules ................................................................................................ 123
Supplementary Information:
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual:
Street Capital Projects Fund .................................................................................................................. 127
Nonmajor Governmental Funds:
Combining Balance Sheet ............................................................................................................................ 131 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances .................................... 137 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual:
Proposition A Special Revenue Fund .................................................................................................... 143 Gas Tax Special Revenue Fund ............................................................................................................. 144 Measure W Special Revenue Fund ........................................................................................................ 145 Proposition C Special Revenue Fund .................................................................................................... 146 Air Quality Improvement Special Revenue Fund ................................................................................. 147 Asset Forfeiture Special Revenue Fund ................................................................................................ 148 Parks/Library/Facilities DIF Special Revenue Fund ............................................................................. 149 Business Improvement Area #1 Special Revenue Fund ........................................................................ 150 Maintenance District 93-1 Special Revenue Fund ................................................................................ 151 Law Enforcement/Fire/Medic DIF Special Revenue Fund ................................................................... 152 Public Safety Augmentation Special Revenue Fund ............................................................................. 153 Measure R Special Revenue Fund ......................................................................................................... 154 Circulation DIF Special Revenue Fund ................................................................................................. 155 CERCLA Liability Special Revenue Fund ............................................................................................ 156 SB1 - RMRA Special Revenue Fund .................................................................................................... 157 Measure M Special Revenue Fund ........................................................................................................ 158 SB2 - Planning Grant Special Revenue Fund ........................................................................................ 159
City of Monterey Park
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Table of Contents (Continued)
iii
Page
FINANCIAL SECTION (Continued)
Supplementary Information (Continued):
Nonmajor Governmental Funds (Continued):
Bike Route Special Revenue Fund ........................................................................................................ 160 Highway Safety Improvement Special Revenue Fund .......................................................................... 161 Sales Tax Bond Debt Service Fund ....................................................................................................... 162
Internal Service Funds:
Combining Statement of Net Position ................................................................................................... 164 Combining Statement of Revenues, Expenses and Changes in Net Position ........................................ 166 Combining Statement of Cash Flows .................................................................................................... 168
STATISTICAL SECTION (Unaudited)
Description of Statistical Section Contents ............................................................................................................... 175
Financial Trends:
Net Position by Components – Last Ten Fiscal Years ........................................................................................... 176 Changes in Net Position – Last Ten Fiscal Years .................................................................................................. 178 Fund Balances of Governmental Funds – Last Ten Fiscal Years .......................................................................... 182 Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years ....................................................... 184
Revenue Capacity:
Assessed Value of Taxable Property – Last Ten Fiscal Years .............................................................................. 187 Direct and Overlapping Property Tax Rates – Last Ten Fiscal Years ................................................................... 188 Principal Property Taxpayers – Current Year and Nine Years Ago ...................................................................... 190 Property Tax Levies and Collections – Last Ten Fiscal Years .............................................................................. 192
Debt Capacity:
Outstanding Debt by Type – Last Ten Fiscal Years .............................................................................................. 194 Ratio of General Bonded Debt Outstanding – Last Ten Fiscal Years ................................................................... 196 Direct and Overlapping Debt ................................................................................................................................. 197 Legal Debt Margin Information – Last Ten Fiscal Years ...................................................................................... 198
Demographic and Economic Information:
Demographic and Economic Statistics – Last Ten Fiscal Years ........................................................................... 201 Principal Employers – Current Year and Nine Years Ago .................................................................................... 202
Operating Information:
City Employees by Function – Last Ten Fiscal Years ........................................................................................... 205 Operating Indicators by Function – Last Ten Fiscal Years ................................................................................... 206 Capital Assets by Function – Last Ten Fiscal Years ............................................................................................. 208
Water District Schedules for Revenue Capacity:
Water Sold by Type of Customer – Last Ten Fiscal Years ................................................................................... 210 Water Rates – Last Ten Fiscal Years ..................................................................................................................... 212 Top Ten Water Customers – Current Year and Four Years Ago ........................................................................... 213
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MONTEREY PARK CITY OFFICIALS
CITY COUNCIL
Vinh T, Ngo, Mayor
Elizabeth Yang, Mayor Pro Tem
Thomas Wong
Council Member
Henry Lo
Council Member
Jose Sanchez
Council Member
ELECTED OFFICIALS
Maychelle Yee, City Clerk
Amy Lee, City Treasurer
EXECUTIVE TEAM
Inez Alvarez .................................................................................................... City Manager Diana Garcia .................................................................................. Assistant City Manager Karl H. Berger .......................................................................................... City Attorney Scott Wiese ........................................................................................................ Police Chief Jason Hing ............................................................................................................ Fire Chief Martha Garcia .................................................................................. Director of F inance
Christine Tomikawa............................ Director of Human Resources/Risk Management Shawn Igoe ...................................................................................Director of Public Works Timothy Hou .................................................. ....... Director of Community Development Robert Aguirre ........................................... Director of Recreation/Community Services Kristin Olivarez ........................................................................................ City Libr arian
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Monterey Park
Citizens
City Clerk
Mayor &
City Council
City Manager *Successor Agency
*Media Production and Communications
*City Clerk's Division
Police Department
*Police Administration
*Traffic Bureau
*Field Services
*Investigations
*Animal Services
*Communications
*Jail
*Records
*Computer Services
*Community Engagement
Fire Department
*Fire Administration
*Fire Prevention
*Emergency Operations
*Emergency Medical Services
*Comm. Risk Reduction
*Code Compliance
Human Resources & Risk
Management
*Human Resources
*Risk Management
Finance
Department *Finance
*Information Technology
*Community Housing Assistance
*Revenue Collection
M.P. Bruggemeyer Library
*Library Administration
*Adult & Teen Services
*Operational Support Services
*Literacy
*Children Services
Public Works
*Community Transportation
*Street Maintenance & Street Cleaning
*Storm Drain Maintenance
*Sanitary Sewer Maintenance
*Traffic Control & Street Lighting
*Refuse Collection
*Building Maintenance
*Motor Pool Shop
*Engineering
**Parks & Parkway Maintenance
*Water & Wells
Recreation & Community
Services
*Recreation Facilities
*Aquatics
*Senior Programs
*Youth Programs
*Recreation Programs
*Special Events
*Community Transportation
Community
Developement
*Planning
*Building Safety
*Economic Development
*Business Improvement Area
Boards &
Commissions
City Attorney
City
Treasurer
City of
Monterey
Park
Organization
Chart
vi
Pr
ide in the Past • Faith in the Future
vii
CITY OF MONTEREY PARK
320 West Newmark Avenue • Monterey Park • California 91754-2896 www.montereypark.ca.gov
Ci
ty Council
Henry Lo
Vinh Ngo
Jose Sanchez
Thomas Wong
Elizabeth Yang
Cit
y Clerk
Maychelle Yee
Ci
ty Treasurer
Amy Lee
December 10, 2025
Honorable Mayor, Members of the City Council and the Residents of the City of Monterey Park, Calif
ornia State law requires that all general-purpose local governments publish within six months of the close of each fiscal year a complete set of financial statements presented in conformity with generally accepted accounting principles (GAAP), as promulgated by the Government Accounting Standards Board (GASB) and audited in accordance with generally accepted auditing standards by a firm of licensed certified public accountants. Pursuant to that, we hereby submit, for your information and review, the An nual Comprehensive Financial Report (ACFR) for the City of Monterey Park, California, for the fiscal year end ing June 30, 2025.
Th
is report consists of management’s representations concerning the finances of the City of Monterey Park.
Consequently, management assumes full responsibility for the completeness and reliability of all the information presented in this report. To provide a reasonable basis for making these representations, management has established an internal control system that is designed to protect City assets and to ensure that the accounting records provide a reliable basis for the preparation of the financial statements. Because the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that
the financial statements will be free of any material misstatements. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects.
Th
e City’s financial statements have been audited by The Pun Group, LLP, a fully licensed and qualified public accounting firm that performs audits of the State and local governments within the State of California. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City of Monterey Park for the fiscal year end ed June 30, 202 5, fairly state the City's financial position. The independent audit involves 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 auditors concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the City of Monterey Park’s 202 4-25 financial statements are fairly presented in conformity with generally accepted accounting principles (GAAP).
Th
e independent auditors’ report is presented as the first component of the financial section of this report.
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Management Discussion & Analysis
A narrative introduction, overview, and analysis accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be read in conjunction with it. The C ity's MD&A immediately follows the independent auditor's report in the financial section of the ACFR.
Pr
ofile of the City of Monterey Park
Th
e City of Monterey Park was incorporated in 1916 as a general law city. The name of "Monterey Park" was taken from old government maps that described the oak-covered inclines that made up the area as Monterey Hills. The City operates under the council-manager form of municipal government. The City Council consists of five members representing each of the five districts, and each serves a term of four years. The City Clerk and the City Treasurer are also elected by the citizens. Monterey Park Ordinance 2096 imposes term limits of no more than two consecutive terms on all elected officials. The City Council appoints the City Manager, who has the responsibilities of overseeing City services and operations. In addition to governing the City, the City Council serves as the governing board of the Successor Agency of the Former Redevelopment Agency, the Monterey Park Financing Authority, the Housing Authority, and the Geologic Hazard Abatement District.
The financial information of these component units has been included with the City. Please see Note 1 to Financial Statements for discussion of the component units.
Monterey Park is a full-service City, offering its residents a wide range of municipal services, including public safety, streets, sanitation, water and sewer services, development and public infrastructure improvements, culture and leisure programming, and general government functions. The City strives to provide high-quality public services that emphasize organizational efficiency, infrastructure investment, and economic development.
Loca
l Economic Condition
Mo
nterey Park is located six miles east of Los Angeles at the western gateway to the San Gabriel Valley. It encompasses an area of 7.73 square miles with a population of approximately 59,288 . Monterey Park is primarily a residential community, with 78% of its land zoned for single and multiple family housing. In 2024, the median sales price of detached single -family homes in Monterey Park was $990,000. This median sales price was 7.84% higher than 2023 median sales price of $918,000. The number of detached single -family home sales for 202 4 (215 sales) was more than 2023 (205 sales) , which is consistent with what is seen in most areas of California.
Pe
rsistent economic headwinds continue to shape the short -term sales tax outlook. While consumer spending on taxable goods remains steady, recent declines in consumer confidence —driven by inflationary pressures, tariff concerns, and rising unemployment —pose risks to sustained revenue growth. The Federal Reserve’s recent interest rate reduction in September of 2025 , the first since December 2024, signals a responsive monetary policy aimed at stabilizing economic conditions; this reduction does not alter anticipated spending patterns. Modest sales tax increases simply recapture statewide sales tax decreases that occurred in the prior two fiscal years.
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Through the Federal American Rescue Plan (ARPA), the City was allocated $15 million for COVID-19 pandemic recovery efforts. The first lump sum was received in June 2021 and the second and final lump sum was received in June 2022. In FY 2024-2025, the City used ARPA funds towards governmental services including rehiring part-time and full-time staff to pre- pandemic levels and investing in public safety and cyber security.
All ARPA funds were exhausted by December 31, 2024.
Financial Overview and Policies
In FY 2024 -25, the City continues to report on Governmental Accounting Standards Board (GASB) 96. This Statement provides guidance on the accounting and financial reporting for subscription -based information technology arrangements (SBITAs) for governments. This Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right -to-use subscription asset—an intangible asset—and a corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. To the extent relevant, the standards for SBITAs are based on the standards established in Statement No. 87, Leases, as amended.
The City continues the reporting requirement per GASB Statement No. 68 and 71, for pension liabilities. The City also continue s the reporting for GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, for other postemployment benefits liabilities on the face of the Statement of Net Position . Excluding all postemployment benefits (pensions and OPEB) liabilities, the City's end of year financial condition for FY 2024-25 displayed a positive operating position due to the City's conservative financial planning and management.
The City implemented GASB Statement No. 101, Compensated Absences, in this year’s financial statements.
The new standard updates the recognition and measurement of leave -related liabilities. Implementation resulted in only minor changes to the City’s reported compensated absences liability, with no significant impact on overall financial position.
As the City’s development projects continue to expand and move forward, the hope is that they will generate new jobs and tax revenues for the City.
The annual budget serves as the foundation for the City’s financial planning and control. The City starts its budget process in January. The budget development is based on the City's goals and priorities. The financial plan reflects the desired operational outcomes of each City department as they relate to the City’s strategic goals and provide a clear direction for the City to move toward achieving the quality and desired community of the future as its further articulated in the City’s General Plan.
FY 2024-2025 Strategic Plan
1. Goal - MAINTAIN PUBLIC SAFETY WITH A FLEXIBLE AND ENHANCED SERVICE MODEL Objectives: Strengthen Community Outreach; Address Ongoing Safety Challenges; and Provide In- Service Training
2. Goal - TO MAINTAIN FISCAL STABILITY OF OUR CITY’S FINANCIAL RESOURCES Objectives: Review and Revise City Revenue Sources; and Assess Cost Recovery Strategies
3. Goal – STRENGTHEN OUR LOCAL ECONOMY AND ENHANCE HOUSING OPPORTUNITIES Objectives: Implement Economic Development Strategic Plan; Support Local Businesses; and Encourage Housing Development
x
4. Goal - MAINTAIN, BUILD AND MODERNIZE INFRASTRUCTURE AND FACILITIES TO SUPPORT THE
CURRENT AND FUTURE NEEDS OF OUR CITY AND COMMUNITY
Objectives: Prioritize Water Projects and 710 Mobility Projects; Continue Roadway Resurfacing; and Expand EV Charger Network
5. Goal - ENH
ANCE ACCESS TO RESOURCES FOR MENTAL HEALTH, SOCIAL SERVICES, AND UNHOUSED NEEDS
Objectives: Compile Comprehensive Resource List; Research Local Collaborations; and Conduct Workshops and Seminars
6. Goal - ENH
ANCE PUBLIC COMMUNICATION AND CIVIC ENGAGEMENT TO REACH ALL MEMBERS OF
OUR COMMUNITY
Objectives: Refine Communications Plan; Craft Mission, Vision, and Values Statements; and Refresh Branding Materials
These g
oals serve as the guidelines to identify community priorities and effectively align resources to achieve our mission. The City Manager presents the proposed budget to the City Council for review prior to the beginning of each fiscal year and the City Council holds public hearings to review and approve the proposed budget. The final adopted budget, reflecting the City Council's directions, is published no later than June 30.
Legal b
udgetary control for operating budgets is exercised at the department and fund level. The City is required to adopt a balanced budget for its General Fund at the beginning of the fiscal year.
Formal
budgetary integration and encumbrance accounting are employed as management control devices during the year for all funds.
The 202 4-
25 Adopted Budget includes a conservative fiscal spending plan and reflects $24.5 million for infrastructure and capital improvements, specifically water, sewer, street projects and public safety equipment. The City continues improving efficiencies by aligning closely related programs to achieve long- term financial stability.
Major Accom
plishments
The City of Monterey Park's major accomplishments during the Fiscal Y ear 202 4-25, which displayed significant financial impacts, included:
o At the November 2024 elections, voters adopted Measure BE which updated the structure of the City’s business license tax to be based on a business’s gross receipts. The measure was adopted based upon a 70.46% voter approval. Voters also adopted Measure LG which increased transient occupancy tax from 12% to 13%. The measure was adopted based upon a 76.19% voter approval. o Developed an Economic Development Strategic Plan including the Business Alliance & Small Business Assistance Program.
o Approved new commercial and residential refuse contracts with Ware Disposal and Athens Services.
o Developed and adopted new City Mission, Vision and Values.
xi
o Implementation of the new Police Department Computer-Aided Dispatch (CAD) and Records Management Systems (RMS).
o Installation of public art including the “Greetings Tour” mural. o Initiated several 710 projects including the adaptive traffic signal project, the Monterey Pass Road. street design, and the Garvey capacity improvement design.
Gann Spending Limitation
Article XIIIB of the California Constitution, which was adopted in 1979 and amended in 1990 by Proposition 111, establishes a limit on government spending. The limit is calculated based on a government's 1978 -79 appropriations adjusted each year by the cha nge in California per capita income or the change in nonresidential assessed valuation combined with the change in city or county population. The City's 2024-25 appropriations limit was $113.5 million and the City's actual appropriation subject to the limit was 39% below the legal limit. Based on the past trend and projected future growth, the City believes its appropriations will continue to remain within the legal limit.
Debt Administration
The primary objective of the City’s debt administration is to maintain its accessibility to capital market at the lowest possible cost; i.e. interest cost, without endangering its ability to finance essential services. The City uses debt financing only for capital improvements or projects that cannot be financed from current revenues.
The City has been successful in obtaining financing for various infrastructure improvements, such as pension obligations, P olice 911 computer system, water treatment plants, a nd a citywide smart meters/energy retrofit project.
Cash Management
While the City monitors its cash balance daily and invests temporarily idle funds in accordance with the Government Code and the City’s Investment Policy, there is potential to further enhance our returns and cash management. The City's investment and cash management is handled through the pooling of various City funds to maximize safe and efficient investment operations. Investment earnings are distributed based on average cash balance. The Finance staff carries out the daily investment operations. At June 30, 2025, the City's cash and investment balances, including amounts held by fiscal agents, were $130.2 million.
The City periodically submits its Investment Policy to the Municipal Treasurers Association of United States and Canada for certification to ensure the Policy meets the criteria established by the Association’s Investment Policy Certification Program. The City's Investment Policy was recertified for the Certificate of Excellence Award.
Risk Management
Monterey Park is self-insu red for general liability and workers' compensation. The City has acquired excess coverage for both under a Joint Power Authority (JPA) Agreement with Public Risk Innovation Solutions and Management (PRISM). PRISM is a member-directed risk sharing pool of public agencies committed to providing risk coverage programs and risk management services, which drive member stability, efficiency and best practices. To finance risk management, the City maintains internal service funds for general liability and workers' compensation insurances. The claims payable includes incurred-but-not-reported claims. However, the claim
xii
values consider the indemnity and expense exposures and are based on known facts at the time of evaluation. The City does not warranty the ultimate values of incurred-but-not-reported claims, which could be significantly different from the final settlement. The City actively administers various risk management programs including employee accident prevention training, claims review, and safety meetings to reduce the City’s exposure to loss.
Awards and Acknowledgements
The Government Finance Officers Association of the United States and Canada (GFOA) awards a Certificate of Achievement for Excellence in Financial Reporting. The City of Monterey Park was awarded the Certificate of Achievement by GFOA for its Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2024. This was the 36
th consecutive year the City received this award. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for the preparation of state and local government financial reports. In order 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. Such a report must satisfy both generally a ccepted accounting principles and applicable legal requirements.
The Certificate of Achievement for Excellence in Financial Reporting is valid for a period of one year. We believe the City's Fiscal Year 2024-25 ACFR will continue to conform to the Certificate of Achievement Program's requirements, and we are submitting it to the GFOA for award consideration. In addition, the City’s Budget has received awards for excellence in budgeting from both the Government Finance Officers Association of the United States and Canada ( GFOA) and California Society of Municipal Finance Officers Association (CSMFO).
We would like to express our sincere appreciation to the entire Finance Department staff whose efficient and dedicated services have made this timely preparation of this report possible. We would also like to thank the Mayor and City Council for their unfailing support of excellence in financial reporting and fiscal integrity. The accomplishments and values for this community which are presented in this report are a testament to the leadership of the City Council and the dedication of all City employees.
Respectfully submitted,
Inez Alvarez Martha Garcia
City Manager Director of Finance
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Monterey Park
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2024
Executive Director/CEO
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6 Hutton Centre Drive, Suite 1200
Santa Ana, California 92707
INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and Members of the City Council
of the City of Monterey Park
Monterey Park, California
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activiti es, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Monterey Park, California (the “City”), as of and for the year ended June 30, 2025, and the related notes to the fina ncial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.
In our opinion, the accompanying financial statements referre d to above present fairly, in all material respects, the respective financial position of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2025, 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 accept ed 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 ( “Government Auditing Standards” ). Our responsibilities under those standards are further described in the Auditor’s Responsib ilities for the Audit of the Financial Statements section of our report. We are required to be inde pendent of the City, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Change in Accounting Principle
As discussed in Notes 1 and 18 to the financial stat ements, the City adopted new accounting guidance, GASB Statement No. 101, Compensated Absen ces during the year ended June 30, 2025. The adoption of this standard resulted in the restatement of the City’s net position as of J une 30, 2024. Our opinion is not modified with respect to this matter.
Responsibilities of Management for the Financial Statements
Management is responsible for the prep aration and fair presentation of the fi nancial statements in accordance with accounting principles generally accepted in the United Stat es 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.
To the Honorable Mayor and the Members of the City Council of the City of Monterey Park
Monterey Park, California
2 In preparing the financial statements, management is required to evaluate wh ether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ab ility to continue as a going concern for twelve months beyond the financial st atement date, including any currently known information that may raise substantial doubt shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whet her the financial statements as a whole are free from material misstatement, whether due to fraud or error, a nd to issue an auditor’s report that includes our opinions.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with 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 cont rol-related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis, Budgetary Comparison Sc hedules, the Schedules of Changes in Net Pension Liability and Related Ratios, and the Schedules of Contributions - Pensions, the Schedule of Changes in Ne t OPEB Liability and Related Ratios and Schedule of Contributions - OPEB, be presented to supplement the basic financial statements. Such information is the responsibility of mana gement and, although not a part of the basic financial statements, is required by the Governmental Accounting Standard s Board who considers it to be an essen tial part of financial reporting for placing the basic financial statements in an appropriate opera tional, economic, or historical context. We have applied certain limited procedures to the required supplementary in formation in accordance with GAAS, 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 pro cedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
To the Honorable Mayor and the Members of the City Council of the City of Monterey Park
Monterey Park, California
3 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 a nd Individual Fund Fi nancial Statements 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 basic 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 GAAS. In our opinion, the Combining and Individual Fund Financial Statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the othe r information included in the annual report. The other information comprises the Introductory and Statistical Sections but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basi c financial statements, our responsibility is to read the other information and consider whether a material inconsistenc y exists between the other information and the basic financial statements, or the other information otherwise appears to be materially mi sstated. 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 repor t dated December 10, 2025, on our consideration of City’s internal cont rol over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreemen ts and other matters. The purpose of that report is solely to describe the scope of our testing of internal control ove r financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City’s internal control over financial reporting and compliance.
Santa Ana, California
December 10, 2025
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City of Monterey Park
Management Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2025
5 Introduction
The Management Discussion and Analysis provides a narrative introduction, analysis, and overview that will assist in understanding of the City’s financial statements. This analysis should be read in conjunction with the City’s financial statements as of June 30, 2025, the transmittal letter, and notes to the basic financial statements.
Government-wide Financial Statements
The government-wide financial statements are designed to pr ovide information of the City ’s financial activities in a manner similar to a private-sector company. Government-wid e financial statements consist of the statement of net position and the statement of activities, which are prepared using the economic resources measurement focus and the accrual basis of accounting. These statements provide both s hort-term and long-term info rmation about the City’s financial position, which is helpful in assessing the City’s economic condition at the end of the fiscal year.
The statement of net position presents all of the City’s financial resources along with its capital assets and long-term obligations. The difference between the assets and the liabilities is reported as the net position.
The statement of activities reports the gross and net costs of various activities carried out by the City and how the City’s net position changed during the fiscal year. This statement summarizes the cost of providing services by the City and includes all current year revenues and expenses.
Both government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (i.e. governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (i.e. business-type activities). The governmental activities of the City include general government, public safety, comm unity development, culture and recreation, highways and streets, health, and debt service. The business-type activ ities reflect the City’s water system operations, waste management activities, and sanitary sewer activities.
The government-wide financial statements include not only th e City but also those lega lly separate entities for which the City is financially accountable. These entities include the Monterey Park Housing Authority and the Monterey Park Public Financing Authority. Financial information for these component units is reported as an integral part of the City.
Please refer to Note Number 1A of the Notes to the Basic Financial Statements.
Fund Financial Statements
A fund is a grouping of related accounts used to control res ources that have been segregated for specific activities or objectives. The City uses fund accounting to ensure a nd demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.
City of Monterey Park
Management Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
6 Governmental Funds
Governmental funds are used to acco unt for essentially the same governmental activities in the government-wide financial statements. However, unlike the government-w ide financial statements, governmental fund financial statements focus on near-term inflows and outflows of expendable resources, as well as on balances of expendable resources available at the end of the fiscal year. Governmental funds are accounted for using the modified accrual basis of accounting, which provides a detailed view of the City’s current financial resources and the City’s ability to meet its current expenditure needs. Such information may be u seful in evaluating a government's near-term financing requirements.
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 governmental fund statement of revenues, expenditur es, and changes in fund balances provi de a reconciliation to facilitate this comparison between governmental funds and government-wide activities.
The City maintains 19 individual governmental funds. In formation is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditur es, and changes in fund balances for General Fund, Special Revenue Grants Fund, Special Re venue Retirement/Pension Liability Fund, Special Revenue Housing Fund, and Capital Projects Street Fund, which ar e reported as major funds. Information for the other 14 governmental funds is combined into a single column under Nonmajor Special Revenue Governmental Funds. Data for the nonmajor governmental funds is provided in the combining statements in this report.
The City adopts an annual appropriated budget for its governmental funds. Budgeted expenditures are controlled at the fund level. Budgetary comparison statements have been pr ovided to demonstrate compliance with this budget. Please refer to the Notes to Required Supplementary Information.
Proprietary Funds
Proprietary funds use the accrual basis of accounting, which is the same method used by private businesses. Proprietary fund financial statements provide the same type of information as the governme nt-wide financial statements, only in more detail.
The City maintains two different types of proprietary funds: enterprise funds and internal service funds. The enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for the operations for its water system, waste management activities, and sanitary sewer activities. Internal service funds are used to accumulate and allocate costs internally among the City’s various functions, which include vehicle operation, workers compensation insurance, retiree medical benefits, general liability insurance, separation benefits, building maintenance and technology development. Because the internal service operations benefit both governmental and business-type functions, they have been proportionally allocated and included within the governmental and business-like activities in the government-wide financial statements. Individual fund data for the internal service funds is provided in the form of combining statements in this report.
Fiduciary Funds
Fiduciary funds are used to account for activities when the City acts as a trust or fiduciary to hold resources for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City’s programs.
City of Monterey Park
Management Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
7 Notes to the Basic Financial Statements
The notes to the basic financial statements provide additio nal information that is essentia l for a full understanding of the data provided in the government-wide and fund financial statements.
Required Supplementary Information
The required supplementary information further explains and supports the information in the financial statements. This section includes the schedules of the City’s funding for its employee pension program, other post-employment benefits program, and the budgetary comparison for the General Fund, Special Revenue Grants Fund, Special Revenue Retirement/Pension Liability Fund, and the Special Revenue Housing Fund.
Other Supplementary Information
Other supplementary information includes combining and individual budgetary comparison schedules for Nonmajor Governmental Funds, and combining statements for Agency Funds and Internal Service Funds.
Financial Highlights
Total 2024-25 net position increased by $16.2 million from 2023-24, which is th e net of the $9.1 million increase in governmental activities and the $7.1 million increase in business-type activities. The $9.1 million increase in governmental activities was attributed to an overall increase in revenue including interest income, property tax and sales tax revenue from Measure M. The $7.1 million increase in business-type activities was attributed to decreased operating expenses and increased revenue due to utility rate increases implemented in early 2024.
As of June 30, 2025, the City’s assets and deferred outflow of resources exceeded its liabilities and deferred inflow of resources by $83.0 million, of whic h $129.7 million was related to the net investment in capital assets, $26.6 million was restricted for special revenues and capital appropriations, and a deficit $73.3 million was unrestricted.
At the 2024-25 year-end, the General Fund total fund ba lance was $46.5 million, a $4.6 million increase from the prior year. The increase was related to increased revenue from sales and property tax and the slow progress of major capital improvement projects causing delays in spending of assigned fund balances.
The City completed a Proposition 218 rate increase for wa ter and sewer with new rates being implemented in February 2024. The service contract cost for the trash provider was adjusted by CPI, per the contractual agreement.
The City is processing a Proposition 218 rate study for refuse which is estimated to be complete by Fall 2025.
The City continued to serve as the Successor Agency for its former Redevelopment Agency, and reported the former RDA assets and liabilities in the Fiduciary Fund as a Private Purpose Trust Fund.
Government-wide Financial Analysis
The net position of the City is deri ved from the total assets and deferred outflows of resources less its liabilities and deferred inflows of resources at the end of a reporting peri od. It serves as an indicator of a government's financial position at a certain point in time. As of June 30, 2025, the City’s combined assets (governmental and business-type activities) totaled $306 million, up $15.4 million from last year. The increase was primarily attributed to the completion and capitalization of capital projects to taling $9.7 million. The City’s total deferred outflow of resources decreased $12.5 million, from $35.1 million to $22.6 million. The decrease was due to the City’s pension plans. The City’s liabilities totaled $240.3 million, down $9.4 million from last y ear. The City’s total deferred inflow of resources decreased $2.5 million, from $7.5 million to $5.0 million. The decrease was relate d to the City’s pension plans and other post-employment benefits. As a result, the City’s co mbined net position totaled $83 .0 million, up $16.2 million from last year.
City of Monterey Park
Management Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
8 Net position consists of three categories: net investment in capital assets, restrict ed fund balances, and an unrestricted fund balance. The largest portion of the City’s net position, approximately $129.7 million, is the City’s investment in capital assets, including land, buildings, equipment, and infrastructure net of accumulated depreciation and related debt for acquiring these capital assets. Since the capital assets are used to provide services to citizens, they are not available to fund the City’s day-to-day activities.
The City’s restricted net position totaled $26.6 million at June 30, 2025. These are assets subject to external restrictions, constitutional provisions, or enabling legislation that lim it how these assets may be used . The restricted net position includes primarily grants, retirement/pension funds, and vari ous nonmajor special revenue funds. The unrestricted net position is available for use by the City for any legal purpose. As of June 30, 2025, the City’s total unrestricted net position was a deficit $73.3 million.
6/30/2025 6/30/2024 6/30/2025 6/30/2024 6/30/2025 6/30/2024 Assets:
Current 107,969 $ 105,655 $ 35,510 $ 30,725 $ 143,479 $ 136,380 $ Non Current
Capital Assets 100,459 93,728 60,074 58,699 160,533 152,427 Other 1,614 1,398 - - 1,614 1,398 Total Assets: 210,041 200,780 95,584 89,424 305,626 290,204 Deferred Outflow of Resources 21,342 32,630 1,299 2,468 22,642 35,098 Liabilities:
Current 30,461 31,619 5,661 5,417 36,122 37,036 Long-Term 169,320 175,617 34,887 37,044 204,207 212,661 Total Liabilities 199,781 207,237 40,547 42,461 240,328 249,698 Deferred Inflow of Resources 4,599 6,976 376 550 4,974 7,526 Net Position:
Net Investment in Capital
Assets 80,284 72,982 49,415 48,793 129,699 121,775 Restricted 26,575 30,285 6 6 26,581 30,291 Unrestricted (79,855) (84,069) 6,539 83 (73,316) (83,985) Total Net Position 27,004 $ 19,198 $ 55,960 $ 48,882 $ 82,964 $ 68,080 $ Note: a change in accounting estimate is treated prosp ectively, prior periods are not restated Governmental
Activities
Business-type
Activities Total
Statement of Net Position
For Fiscal Years Ended June 30, 2025 and June 30, 2024
(In thousands)
City of Monterey Park
Management Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
9 Governmental Activities Financial Analysis
Overall governmental activities increased the City’s net pos ition by $9.1 million to 27.0 m illion. This change in net position was, primarily due to the tax revenue in the amount of $55.4 million, compared to $51.7 million tax revenue in the fiscal year 2024.
6/30/2025 6/30/2024 6/30/2025 6/30/2024 6/30/2025 6/30/2024 Revenues
Program Revenues:
Charges for Services 13,915 $ 15,032 $ 27,988 $ 26,638 $ 41,903 $ 41,670 $ Operating Grants &
Contributions 27,472 28,097 27,472 28,097 Capital Grants &
Contributions 1,894 3,856 1,894 3,856 General Revenues:
Taxes 55,425 51,690 55,425 51,690 Revenues from Use of
Money and Property 2,787 4,224 1,514 (196) 4,301 4,028 Other 4,093 1,734 - 108 4,093 1,841 Total Revenues: 105,587 $ 104,633 $ 29,502 $ 26,550 $ 135,089 $ 131,182 $ Expenses:
General Government 15,618 13,124 15,618 13,124 Public Safety 53,526 51,063 53,526 51,063 Comm. Development 3,716 2,187 3,716 2,187 Culture & Recreation 5,131 6,516 5,131 6,516 Highway & Streets 14,591 8,663 14,591 8,663 Health 401 302 401 302 Interest & Fiscal Charges 3,532 3,639 3,532 3,639 Water/Refuse/Sewer - - 22,360 28,093 22,360 28,093 Total Expenses: 96,515 $ 85,494 $ 22,360 $ 28,093 $ 118,875 $ 113,587 $ Transfers - 382 - (382) - - Changes in Net Position 9,072 19,521 7,142 (1,925) 16,214 4,843 Net Position July 1, as previously reported 19,198 (323) 48,882 50,807 68,080 50,484 Change in accounting principle (GASB 101)* (1,266) - (63) - (1,329) - Net Position July 1, as restated 17,932 (323) 48,818 50,807 66,750 50,484 Net Position June 30 27,004 $ 19,198 $ 55,960 $ 48,882 $ 82,964 $ 68,080 $ * Note: a change in accounting estimate is treated prospectively, prior periods are not restated Governmental
Activities
Business-type
Activities Total
City of Monterey Park
Management Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
10 The City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The focus of the City’s governmental funds is to provide information on near-term inflows and outflows during the fiscal year and balances of spendable resources at the end of the fiscal year. Such information is useful in assessing the City’s financing requirements to meet the current needs. Unassigned fund ba lance may serve as a useful measure of the City’s net resources available for appropriation.
As of June 30, 2025, the City’s gove rnmental funds reported a combined e nding fund balance of $71.7 million, a decrease of $1.4 million from the prior year. The fund balance categories of the governmental funds show $24.7 million as restricted, $13.7 million as committed, $32.1 m illion as assigned, and $0.7 million as unassigned. (Please refer to Note 16 of the Notes to Basic Financial Statements for detailed breakdown.)
There are five major funds in the governmental funds: Ge neral Fund, Special Revenue Grants Fund, Special Revenue Retirement/Pension Liability Fund, Special Revenue Housing Fund, and the Street Capital Projects Fund.
The General Fund is the main operating fund of the City, which accounts for the majority of the police, fire, recreation, parks maintenance, public works, library, community development, and general administrative services. General Fund revenues and transfers in for 2024-25 totaled $74.2 million, an increase of $4.0 million from 2023-24. The increase was primarily due to the additional revenue received from voter-approved ¾ cent Measure MP sales tax and a slight increase in property tax revenue. Total 2024-25 general f und expenditures and transfers out were $71.3 million, reflecting a increase of $14.5 million from 2023-24. As of June 30, 2025 , the total fund balance of the General Fund was $46.5 million, an increase of $4.6 million from last year.
The Special Revenue Grants Fund reports the activities of various grants that the City received from Federal, State, and County agencies. Unspent grant funds are accumulated for expenditures in future years. Total grants received for governmental activities and transfers in for 2024-25 were $6.3 million, down $3.4 million from last year. Total 2024- 25 grant funded expenditures and transfers out were $6.1 million, reflecting a decrease of $3.2 million from 2023-24.
Total fund balance of the Special Revenue Grants Fund as of June 30, 2025 remained at $1.2 million.
Special Revenue Retirement/Pension Liability Fund accounts for revenue received from the voter-approved property tax levied to provide for employee retirement costs. Total revenues and transfers for 2024-25 were approximately $9.8 million, a decrease of $3.4 million from 2023-24. Total expend itures for 2024-25 were $12.1 million, up $0.8 million from 2023-24. The increase in expenditures was due to an additional payment towards the Unfunded Accrued Liability (UAL). The total fund balance in the Retirement/Pension Li ability Fund as of June 30, 2025 was $4.3 million, all of which is restricted for employee retirement costs.
The Special Revenue Housing Fund accounts for housing activities. The City assumed the responsibility of the housing assets and functions after the dissolution of the City's Redevelopment Agency. Total revenues for 2024-25 were $88,564. Total expenditures for 2024-25 were $1.2 million. As of June 30, 2025, the fund balance of the Special Revenue Housing Fund was $2.6 million.
Capital Projects Street Fund accounts for revenue received from Series 2021 bond proceeds to provide for street improvements. Total revenues for 2024- 25 were $74,024. Total expenditures fo r 2024-25 were $1.5 million. As of June 30, 2025, the fund balance of the Capital Projects Street Fund was $0.3 million.
Nonmajor Governmental Funds account for various activities including street maintenance, transportation, air quality improvement, lighting and landscaping district, public safet y activity, and development impact improvements. Total revenues and transfers in for 2024-25 were $16.3 million, down $0.3 million from 2023- 24. Total expenditures and transfers out for 2024-25 were $18.9 million, an increase of $1.9 million over 2023-24. As of June 30, 2025, the fund balance of the Nonmajor Governmental Funds totaled $16.8 million, down $2.5 million from 2023-24.
City of Monterey Park
Management Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
11 Business-type Activities Financial Analysis
The business-type activities reflect the City’s water system, which includes water operation and water treatment, waste management activities and sanitary sewer activities.
Total 2024-25 water operating revenue s were $19.7 million, up $5.0 million from 2023-24. The increase in water revenues was primarily due to increased water rates. Wa ter operating expenses were $16.6 million, down $2.8 million from 2023-24. The decrease was primarily due to reduced co sts for water production and water treatment operations.
The net position at June 30, 2025 for the Water Fund was $44.9 million, up $3.1 million from the previous year.
Refuse Fund revenues for 2024-25 were at $1.8 million, down $5.8 million from the previous year. Operating expenditures were $1.8 million, down $6.2 million from last year. Decreases in operating revenue and expenditures was due to the outsourcing of the revenue billing and collection services. The net position for the Refuse Fund was $644 at June 30, 2025, an increase of $24,446 from the prior year.
Sewer Fund revenues were $6.5 million, up $2.0 million from last year. Opera ting expenditures were $3.8 million, increase $0.7 million from last year. The increase was primarily due to increase the sewer rate. The net position for the Sewer Fund increased to $15.5 million, an increase of $3 million from the prior year.
General Fund Budgetary Highlights
The originally adopted General Fund budget for this fiscal year was $66.7 million. The final amended budget of $80.3 million reflecting City Council approved amendments throughout the year.
The budget amendments included additional funds for minimum wage mandates, service costs, and capital projects.
Overall, actual revenues in the General Fund were higher than the budgeted revenues. The increase was $3.9 million.
Primarily due to increased revenue for licenses and permits and miscellaneous coming in $1.2 million and $2.4 million higher than budgeted, respectively. Revenue from taxes w as higher than budgeted by approximately $0.6 million.
Revenue from fines and forfeitures were higher by approximately $0.3 million. Ac tual expenses in the General Fund were under budget in various major categories with the following amounts by function: General government $1.9 million, community development $24 thousand, and capital ou tlay $10.6 million. These were due to the City’s cost control measures Actual expenses in the following major categories came in over budget by the following amounts:
Public safety $1.2 million, culture and recreation $0.2 million, and highways a nd streets $1 million. Overall, actual expenditures were $10.1 million less than budgeted. Most of the capital outlay budget that was not spent will be rolled over into the 2025-26 budget.
Capital Asset Administration
The City’s capital assets, net of accumulated depreciati on, for its governmental and business-type activities as of June 30, 2025, totaled $160.5 million, an increase of $8.1 million from prior year. The capital assets include land, buildings, improvements, machinery and equipment, parks, roads, traffic lights, and traffic signals . (Readers desiring more detailed information on capital asset activity should refer to Note 7 of the Notes to the Basic Financial Statements.)
City of Monterey Park
Management Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
12 Major capital asset additions during the fiscal year included the following:
Potrero Grande Renovation
Building Forward Library Improvements
Monterey Pass Street Rehabilitation0
Sewer Manhole Rehabilitation
Barnes Gym Restroom Upgrades
Barnes Park Gym Flooring
Ping Pong Room Flooring at Langley Center
Groundwater Treatment System
Debt Administration
As of June 30, 2025, the City’s long-term debt reduced by $2.3 million from the prior year at $189.0 million to $186.7 million which was due primarily to paymen ts towards the Pension Obligation Bonds. (Please refer to Note 8 of the Notes to the Basic Financial Statements for detailed information.)
State statutes limit the amount of general obligation debt a go vernmental entity may issue to 15% of its total assessed valuation. The current debt limitation for the City is $1.53 billion.
6/30/2025 6/30/2024 6/30/2025 6/30/2024 6/30/2025 6/30/2024 Land 8,465 $ 8,465 $ 500 $ 500 $ 8,965 $ 8,965 $ Buildings 12,437 13,037 118 123 12,554 13,160 Improvements 54,401 48,035 52,642 53,946 107,043 101,981 Construction in Progress 2,871 585 3,569 601 6,440 1,186 Equipment 6,516 6,747 657 819 7,173 7,566 Infrastructure 13,745 16,548 2,582 2,695 16,327 19,243 Leased Assets 154 46 - 2 154 47 Subscription Assets 1,870 265 7 14 1,877 279 100,459$ 93,727 $ 60,074 $ 58,699 $ 160,533 $ 152,427 $ Capital Assets Net of Depreciation
For Fiscal Years Ended June 30, 2025 and June 30, 2024
(In thousands)
Governmental
Activities
Business-type
Activities Total
City of Monterey Park
Management Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
13 *Fiscal Year End 06/30/2024 figures were restated, see Notes to the Basic Financial Statements.
Economic Factors and Next Year's Budget
The current economic outlook is characterized by uncertainty. Ambiguity in national public policy leads to delays and curtailment in capital investment. Tariff impositions fl uctuate daily, often lacking specificity, with changing start dates and unclear product details. Other sources of volatility include global even ts, inflation concerns and potential reductions in the Fed Funds Rate. Prioritized day-to-day expenditures er ode household discretionary spending due to weakened consumer confidence. Retaile rs acknowledge that shoppers are experiencing price fatigue. While people continue to spen d, tax allocations are continually shifting. Our statewide forecast has weakened in the short term, with limited growth expected in FY2025-26.
In November 2022, voters adopted M easure MP which authorizes a ¾ cent transactions and use (sales) tax.
Businesses began to collect this tax in April 2023. It generated $9.4 million in FY2024-2025.
The City completed a Proposition 218 water and sewer rate study in FY 2023-24 and implemented rate increases in early 2024.
The City’s total assessed valuation is $10.2 billion, up 4.9%, or $483 million, from 2023-24.
The fiscal year 2025-26 City Budget is balanced. The City is conservative in projecting future revenues. The City’s spending plan follows the City Council’s direction in maintaining excellent community service, enhancing organizational efficiency, and funding much needed infrastructure and capital improvements. The City continued labor negotiations with the all bargaining units. Potential salary and benefit contract adjustments were considered during the fiscal year 2025-26 budget process.
6/30/2025 6/30/2024 6/30/2025 6/30/2024 6/30/2025 6/30/2024 (restated) (restated)
Capital Leases 5,353 $ 2,875 $ 4,539 $ 5,251 $ 9,893 $ 8,125 $ SGVMWD Loan - - 4,000 4,000 4,000 4,000 Lease Liability 170 46 - 1 170 47 Subscription Payable 1,602 160 3 6 1,605 166 Pension Obligation Bonds 96,878 101,065 4,702 4,885 101,580 105,950 Sales Tax Revenue Bonds 16,625 16,960 - - 16,625 16,960 Water Revenue Bonds - - 19,985 20,555 19,985 20,555 Premium 2,839 2,949 531 549 3,370 3,498 Compensated Absences 6,883 6,770 501 487 7,383 7,257 Insurance Assessments
Payable 327 491 - - 327 491 Claims and Judgements 21,765 21,945 - - 21,765 21,945 152,443$ 153,261 $ 34,261 $ 35,733 $ 186,704 $ 188,994 $ Long-term Debt
For Fiscal Years Ended June 30, 2025 and June 30, 2024
(In thousands)
Governmental
Activities
Business-type
Activities Total
City of Monterey Park
Management Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
14 Requests for Information
This financial report is designed to pr ovide a general overview of the City’s finances for all interested persons and organizations. The report is published on the City’s offici al website. Questions concerning any of the information provided in this report, or requests for additional financial information, should be addressed to City of Monterey Park, Finance Department, 320 West Newmark Avenue, Monterey Park, CA 91754.
BASIC FINANCIAL STATEMENTS
15
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16
GOVERNMENT-WIDE FINANCIAL STATEMENTS
17
Governmental Business-Type
Activities Activities Total
ASSETS
Current assets:
Cash and investments 90,101,321 $ 14,808,928 $ 104,910,249 $ Restricted cash - 18,500,074 18,500,074 Cash and investments with fiscal agent 4,622,228 6,275 4,628,503 Accounts receivable 7,269,038 6,426,305 13,695,343 Receivable from Successor Agency 137,342 - 137,342 Prepaid items 2,649 74,335 76,984 Interest receivable 323,815 154,561 478,376 Lease receivable - due within one year 312,825 - 312,825 Loans receivable 738,533 - 738,533 Internal balance 4,460,837 (4,460,837) - Total current assets 107,968,588 35,509,641 143,478,229 Noncurrent assets:
Receivable from Successor Agency 484,282 - 484,282 Lease receivable - due in more than one year 699,278 - 699,278 Net pension assets 430,244 - 430,244 Capital assets - nondepreciable 11,336,519 4,068,551 15,405,070 Capital assets - depreciable and amortizable, net 89,122,404 56,005,414 145,127,818 Total capital assets 100,458,923 60,073,965 160,532,888 Total noncurrent assets 102,072,727 60,073,965 162,146,692 Total assets 210,041,315 95,583,606 305,624,921
DEFERRED OUTFLOWS OF RESOURCES
Pension related 18,293,115 947,026 19,240,141 OPEB related 3,049,033 352,388 3,401,421 Total deferred outflows of resources 21,342,148 1,299,414 22,641,562 Primary Government
City of Monterey Park
Statement of Net Position
June 30, 2025
See accompanying Notes to the Basic Financial Statements 18
Governmental Business-Type
Activities Activities Total
LIABILITIES
Current liabilities:
Accounts payable 6,342,198 $ 2,499,638 $ 8,841,836 $ Accrued payroll and benefits 2,046,769 116,371 2,163,140 Retention payable 291,979 100,832 392,811 Deposits payable 839,834 453,168 1,293,002 Interest payable 323,424 377,399 700,823 Due to other governmental agencies 738,533 - 738,533 Unearned revenues 4,218,017 - 4,218,017 Long-term liabilities - due within one year 15,660,035 2,113,249 17,773,284 Total current liabilities 30,460,789 5,660,657 36,121,446 Noncurrent liabilities:
Long-term liabilities - due in more than one year 136,782,618 32,147,925 168,930,543 Net pension liabilities 18,115,258 1,072,011 19,187,269 Net OPEB liabilities 14,422,058 1,666,806 16,088,864 Total noncurrent liabilities 169,319,934 34,886,742 204,206,676 Total liabilities 199,780,723 40,547,399 240,328,122
DEFERRED INFLOWS OF RESOURCES
Lease related 1,347,356 - 1,347,356 OPEB related 3,251,288 375,762 3,627,050 Total deferred inflows of resources 4,598,644 375,762 4,974,406
NET POSITION
Net investment in capital assets 80,284,133 49,414,538 129,698,671 Restricted for:
Grants 2,153,412 - 2,153,412 Retirement/pension 4,922,550 - 4,922,550 Housing 2,711,581 - 2,711,581 Public safety 2,222,667 - 2,222,667 Public work 853,087 - 853,087 Transit 7,564,435 - 7,564,435 Community development 244,819
- 244,819
Culture and recreation 1,446,278 - 1,446,278 Highways and streets 4,423,161 - 4,423,161 Health 32,731 - 32,731 Debt service - 6,275 6,275 Total restricted 26,574,721 6,275 26,580,996 Unrestricted (deficit) (79,854,758) 6,539,046 (73,315,712) Total net position (deficit) 27,004,096$ 55,959,859$ 82,963,955$ Primary Government
City of Monterey Park
Statement of Net Position (Continued)
June 30, 2025
See accompanying Notes to the Basic Financial Statements 19
Capital Grants
Charges for Operating Grants and
Expenses Services and Contributions Contributions
Functions/Programs
Governmental Activities:
General government 15,618,363 $ 2,414,031 $ 2,521,379 $ - $ Public safety 53,526,285 3,590,622 7,240,701 50,659 Community development 3,716,245 1,373,429 423,470 16,780 Culture and recreation 5,130,841 4,480,447 2,926,445 - Highway and streets 14,590,749 2,056,556 14,360,157 1,826,581 Health 401,190 - - - Interest and fiscal charges 3,531,497 - - - Total Governmental Activities 96,515,170 13,915,085 27,472,151 1,894,020 Business-Type Activities:
Water utility 17,164,365 19,710,829 - - Refuse 1,798,998 1,812,874 - - Sewer 3,396,652 6,464,085 - - Total Business-Type Activities 22,360,015 27,987,788 - - Total Primary Government 118,875,185$ 41,902,873 $ 27,472,151 $ 1,894,020 $ City of Monterey Park
Statement of Activities
For the Year Ended June 30, 2025
Program Revenues
See accompanying Notes to the Basic Financial Statements 20
Governmental Business-Type
Activities Activities Total
Functions/Programs
Governmental Activities:
General government (10,682,953) $ - $ (10,682,953)$ Public safety (42,644,304) - (42,644,304) Community development (1,902,566) - (1,902,566) Culture and recreation 2,276,051 - 2,276,051 Highway and streets 3,652,545 - 3,652,545 Health (401,190) - (401,190) Interest and fiscal charges (3,531,497) - (3,531,497) Total Governmental Activities (53,233,914) - (53,233,914) Business-Type Activities:
Water utility - 2,546,464 2,546,464 Refuse - 13,876 13,876 Sewer - 3,067,433 3,067,433 Total Business-Type Activities - 5,627,773 5,627,773 Total Primary Government (53,233,914) 5,627,773 (47,606,141) General Revenues:
Taxes:
Property taxes 25,053,071 - 25,053,071 Sales taxes 19,758,995 - 19,758,995 Utility user taxes 3,627,964 - 3,627,964 Franchise taxes 1,122,089 - 1,122,089 Business license taxes 1,815,173 - 1,815,173 Transient occupancy taxes 3,951,670 - 3,951,670 Vehicle in-lieu taxes
(Unrestricted, Intergovernmental) 96,316 - 96,316 Revenues (expense) from use of money and property 2,787,210 1,513,669 4,300,879 Other 4,093,144 - 4,093,144 Total General Revenues 62,305,632 1,513,669 63,819,301
Transfers 51 (51) - Changes in Net Position 9,071,769 7,141,391 16,213,160 Net Position - Beginning of year, as previously reported 19,198,289 48,881,675 68,079,964 Change in accounting principle (GASB 101) (1,265,962) (63,207) (1,329,169) Net Position - Beginning, of year, as restated (Note 18) 17,932,327 48,818,468 66,750,795 Net Position - End of year 27,004,096$ 55,959,859 $ 82,963,955 $ Net (Expense) Revenue and Changes in Net Position
City of Monterey Park
Statement of Activities (Continued)
For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements 21
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22
FUND FINANCIAL STATEMENTS
23
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24
GOVERNMENTAL FUND FINANCIAL STATEMENTS
25
Retirement/
General Grants Pension Liability Housing
ASSETS
Cash and investments 48,361,990 $ 5,225,820 $ 3,270,118 $ 2,015,485 $ Cash and investments with fiscal agents - - 776,874 - Receivables:
Accounts 4,510,667 1,395,623 205,949 - Interest 208,592 24,938 - 9,352 Loans and notes - 738,533 - - Due from other funds 515,863 - - - Lease receivable 1,012,103 - - - Prepaid items - - - - Advance to Successor Agency - - - 621,624 Total assets 54,609,215$ 7,384,914 $ 4,252,941 $ 2,646,461 $
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities 3,698,237 341,804 - - Accrued payroll 1,876,254 13,776 - - Retention payable 90,466 - - - Deposit payable 839,834 - - - Unearned revenue 80,628 4,137,389 - - Due to other funds - - - - Due to other governmental agencies - 738,533 - - Total liabilities 6,585,419 5,231,502 - - Deferred inflows of resources:
Leases related 1,347,356 - - - Unavailable revenues 153,811
934,849 - -
Total deferred inflows of resources 1,501,167 934,849 - - Fund balances:
Nonspendable - - - 484,282 Restricted - 1,218,563 4,252,941 2,162,179 Committed 13,726,927 - - - Assigned 32,140,583 - - - Unassigned (deficit) 655,119 - - - Total fund balances 46,522,629 1,218,563 4,252,941 2,646,461 Total liabilities, deferred inflows
of resources, and fund balances 54,609,215$ 7,384,914$ 4,252,941$ 2,646,461$ Special Revenue Funds
Major Funds
City of Monterey Park
Balance Sheet
June 30, 2025
Governmental Funds
See accompanying Notes to the Basic Financial Statements 26
Major Funds
Nonmajor Total
Street Capital Governmental Governmental
Projects Fund Funds Funds
ASSETS
Cash and investments - $ 17,441,201$ 76,314,614 $ Cash and investments with fiscal agents 983,805 - 1,760,679 Receivables:
Accounts - 1,141,297 7,253,536 Interest - 80,933 323,815 Loans and notes - - 738,533 Due from other funds - - 515,863 Lease receivable - - 1,012,103 Prepaid items - 2,649 2,649 Advance to Successor Agency - - 621,624 Total assets 983,805$ 18,666,080 $ 88,543,416 $
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities 151,258$ 1,665,128 $ 5,856,427 $ Accrued payroll - 36,595 1,926,625 Retention payable 54,312 147,201 291,979 Deposit payable - - 839,834 Unearned revenue - - 4,218,017 Due to other funds 515,863 - 515,863 Due to other governmental agencies - - 738,533 Total liabilities 721,433 1,848,924 14,387,278 Deferred inflows of resources:
Leases related - - 1,347,356 Unavailable revenues - - 1,088,660 Total deferred inflows of resources - - 2,436,016 Fund balances:
Nonspendable - 2,649
486,931
Restricted 262,372 16,814,507 24,710,562 Committed - - 13,726,927 Assigned - - 32,140,583 Unassigned (deficit) - - 655,119 Total fund balances 262,372 16,817,156 71,720,122 Total liabilities, deferred inflows
of resources, and fund balances 983,805$ 18,666,080$ 88,543,416$ City of Monterey Park
Balance Sheet (Continued)
Governmental Funds
June 30, 2025
See accompanying Notes to the Basic Financial Statements 27
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28
Total Fund Balances - Total Governmental Funds 71,720,122$ Nondepreciable 11,336,519$
Depreciable/amortizable, net of $2,489,228 reported in the Internal Service Fund 86,633,175 97,969,694 Bonds payable (113,503,280)$
Premium on bonds payable (2,839,305)
Loans payable, net of $(2,861,549) reported in the Internal Service Funds (2,491,638) Interest payable (323,424)
Lease liabilities, net of $(167,828) reported in the Internal Service Funds (1,958) Subscription liabilities, net of $(259,212) reported in the Internal Service Funds (1,343,224) Compensated absences, net of $(328,709) reported in the Internal Service Funds (6,553,933) (127,056,762) Pension related deferred outflows of resources, net of $466,054 reported in the Internal Service Funds 17,827,061 $
Aggregate net pension liability, net of $(527,562) reported in the Internal Service Funds (17,157,452) 669,609 Deferred outflows of resources, net of $137,758
reported in the Internal Service Funds 2,911,275 $
Net OPEB liability, net of $(651,598) reported in the Internal Service Funds (13,770,460) Deferred inflows of resources, net of $(146,895)
reported in the Internal Service Funds (3,104,393) (13,963,578) 1,088,660
(3,423,649)
Net Position of Governmental Activities 27,004,096$
City of Monterey Park
Reconciliation of the Governmental Funds Balance Sheet to the June 30, 2025
Government-Wide Statement of Net Position
Amounts reported for governmental activities in the Statement of Net Position were reported differently because:
Long-term liabilities are not due and payable in the current period and accordingly are not reported as fund liabilities. All liabilities, both current and long-term, are reported in the Statement of Net Position:
Capital assets used in governmental activities were not current financial resources. Therefore, they were not reported in the Governmental Funds Balance Sheet.
Internal Service Funds were used by management to charge the costs of certain activities, such as insurance and equipment replacement to individual funds. The assets and liabilities of the Internal Service Funds were included in the governmental activities in the Government-Wide Statement of Net Position, net of the portion of net deficit allocated to business-type activities of $(4,460,837).
Revenue reported as unavailable revenue in the governmental funds when it is not received soon enough after year-end to be considered available. The availability criteria does not apply to the Government-Wide Financial Statements and, therefore, the revenue is recognized when eligibility requirements are met and earned.
Net pension liabilities and the related deferred outflows of resources and deferred inflows of resources are not due and payable in the current period or not available for current expenditures and are not reported in the governmental fund financial statements:
Net OPEB liabilities and the related deferred outflows of resources and deferred inflows of resources are not due and payable in the current period or not available for current expenditures and are not reported in the governmental fund financial statements:
See accompanying Notes to the Basic Financial Statements 29
General Retirement/
Fund Grants Pension Liability Housing
Revenues:
Taxes 53,648,347$ 194,664$ 9,581,318$ -$ Intergovernmental 271,267 5,174,742 - 829 Charges for services 9,275,211 - - - Licenses and permits 4,315,324 - - - Fines and forfeitures 708,172 - - - Investment income 3,240,555 369,310 262,007 87,735 Miscellaneous 2,771,536 34,324 - - Total revenues 74,230,412 5,773,040 9,843,325 88,564 Expenditures:
Current:
General government 12,956,776 225,229 1,284,610 - Public safety 42,157,203 3,052,276 3,554,653 - Community development 2,156,811 28,607 99,306 1,186,222 Culture and recreation 2,792,018 593,219 109,160 - Highways and street 3,905,525 148,508 64,546 - Health - - - - Capital outlay 5,705,988 1,757,176 - - Debt service:
Principal retirement 556,768 257,485 4,187,029 - Interest and fiscal charges 24,634 50,260 2,850,410 - Total expenditures 70,255,723 6,112,760 12,149,714 1,186,222 Revenues over (under)
expenditures 3,974,689 (339,720) (2,306,389) (1,097,658) Other financing sources (uses):
Issuance of long-term liabilities 1,677,949 - - - Transfers in - 568,140 - -
Transfers out (1,021,789) - - - Total other financing sources (uses) 656,160 568,140 - - Net Change in Fund Balances 4,630,849 228,420 (2,306,389) (1,097,658) Fund balances:
Beginning of year, as previously reported 41,891,780 1,230,698 6,559,330 3,744,119 Correction of error (Note 18) - (240,555) - - Beginning of year, as restated (Note 18) 41,891,780 990,143 6,559,330 3,744,119 End of year 46,522,629$ 1,218,563 $ 4,252,941 $ 2,646,461 $ Special Revenue Funds
Major Funds
City of Monterey Park
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements 30
Major Funds
Nonmajor Total
Street Capital Governmental Governmental
Projects Fund Funds Funds
Revenues:
Taxes -$ 3,647,112$ 67,071,441 $ Intergovernmental - 9,457,789 14,904,627 Charges for services - 811,218 10,086,429 Licenses and permits - - 4,315,324 Fines and forfeitures - - 708,172 Investment income 74,024 853,037 4,886,668 Miscellaneous - - 2,805,860 Total revenues 74,024 14,769,156 104,778,521 Expenditures:
Current:
General government - - 14,466,615 Public safety - 1,175,611 49,939,743 Community development - 49,380 3,520,326 Culture and recreation - 1,186,407 4,680,804 Highways and street 2,000 6,517,314 10,637,893 Health - 401,190 401,190 Capital outlay 1,477,883 6,299,392 15,240,439 Debt service:
Principal retirement - 366,134 5,367,416 Interest and fiscal charges - 715,200 3,640,504 Total expenditures 1,479,883 16,710,628 107,894,930 Revenues over (under)
expenditures (1,405,859) (1,941,472) (3,116,409) Other financing sources (uses):
Issuance of long-term liabilities - 50,516 1,728,465 Transfers in 1,094,434 1,503,848 3,166,422 Transfers out - (2,144,633) (3,166,422) Total other financing sources (uses) 1,094,434 (590,269) 1,728,465
Net Change in Fund Balances (311,425) (2,531,741) (1,387,944) Fund balances:
Beginning of year, as previously reported 573,797 19,348,897 73,348,621 Restatement (Note 18) - - (240,555) Beginning of year, as restated (Note 18) 573,797 19,348,897 73,108,066 End of year 262,372$ 16,817,156 $ 71,720,122 $ City of Monterey Park
Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Governmental Funds
For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements 31
Net Change in Fund Balances - Total Governmental Funds (1,387,944)$ Capital outlay, net of $832,014 in the Internal Service Funds 15,031,252 $ Depreciation and amortization, net of ($741,090) in the Internal Service Funds (8,392,277) 6,621,403 Capital contribution (17,572)
808,367
(1,728,465)
Bonds payable 4,522,029$
Loans payable 383,018
Lease liabilities, net of $79,408 reported in the Internal Service Funds 3,897 Subscription liabilities, net of $64,318 reported in the Internal Service Funds 458,472 5,367,416 (197)
109,204
(156,708)
(6,937,752)
3,256,653
3,119,792
Change in Net Position of Governmental Activities 9,071,769$ Internal Service Funds are used by management to charge the costs of certain activities, such as insurance and equipment replacement, to individual funds. The net revenue of the Internal Service Funds is reported in governmental activities. This amount excludes $1,018,007 charged to the business-type activities.
Certain pension 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.
Certain other postemployment benefits 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.
Compensated absences were reported in the Government-Wide Statement of Activities, but they did not require the use of current financial resources. Therefore, compensated absences were not reported as expenditures in the governmental funds, net of $43,686 reported in the Internal Service Funds.
Net change in revenues that was considered unavailable in the governmental funds. These items have been reported as revenue in the Statement of Activities.
Amortization of bond premium was recognized in interest expense on the Government-Wide Statement of Activities, but did not require the use of current financial resources. Therefore amortization of bond discount was not reported as an expenditure in the governmental funds.
Inception of leases and subscription liabilities is not a revenue in the Statement of Activities, but is reported as a liability on the Government-Wide Statement of Net Position, net of $(441,883) reported at internal service funds.
Principal repayment on long-term debt is not an expense in the Statement of Activities, but instead, is considered an expenditure in governmental funds.
Interest accrued on long-term debt is reported in the Statement of Activities, but does not require the use of current financial resources. Therefore, accrued interest is not reported as an expenditure in governmental funds. This amount represents the change in accrued interest from the prior year.
Capital assets used in governmental activities are not financial resources and therefore are not reported in governmental funds.
Governmental activities in the Statement of Activities were reported differently because:
City of Monterey Park
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes For the Year Ended June 30, 2025
in Fund Balances to the Government-Wide Statement of Activities See accompanying Notes to the Basic Financial Statements 32
PROPRIETARY FUND FINANCIAL STATEMENTS
33
Internal
Water Utility Refuse Sewer Total Service Funds
ASSETS
Current assets:
Cash and investments 4,370,225 $ 363,270 $ 10,075,433$ 14,808,928 $ 13,786,707 $ Restricted cash 18,500,074 - - 18,500,074 - Cash and investments with fiscal agent 6,275 - - 6,275 2,861,549 Accounts receivable 4,852,522 516,749 1,057,034 6,426,305 15,502 Interest receivable 106,955 1,685 45,921 154,561 - Prepaid items 74,335 - - 74,335 - Total current assets 27,910,386 881,704 11,178,388 39,970,478 16,663,758 Noncurrent assets:
Capital assets:
Nondepreciable 3,892,684 - 175,867 4,068,551 - Depreciable and amortizable, net 50,429,187 29,283 5,546,944 56,005,414 2,489,229 Total noncurrent assets 54,321,871 29,283 5,722,811 60,073,965 2,489,229 Total assets 82,232,257 910,987 16,901,199 100,044,443 19,152,987
DEFERRED OUTFLOWS OF RESOURCES
Pension related 688,041 68,028 190,957 947,026 466,054 OPEB related 245,923 26,191 80,274 352,388 137,758 Total deferred outflows of resources 933,964$ 94,219 $ 271,231$ 1,299,414$ 603,812$ City of Monterey Park
Enterprise Funds
June 30, 2025
Proprietary Funds
Statement of Net Position
Governmental
ActivitiesBusiness-Type Activities
See accompanying Notes to the Basic Financial Statements 34
Internal
Water Utility Refuse Sewer Total Service Funds
LIABILITIES
Current liabilities:
Accounts payable 2,272,923 $ 15,701 $ 211,014$ 2,499,638$ 485,771$ Accrued liabilities 85,594 5,965 24,812 116,371 120,144 Retention payable 92,722 - 8,110 100,832 - Interest payable 374,594 1,427 1,378 377,399 - Deposit payable 453,168 - - 453,168 - Loans payable, due within one year 1,169,269 - - 1,169,269 270,292 Bonds payable, due within one year 464,000 28,245 27,262 519,507 - Insurance assessment payable, due within one year - - - - 163,514 Leases liabilities, due within one year - - - - 73,869 Subscription liabilities, due within one year 3,241 - - 3,241 66,962 Compensated absences, due within one year 328,901 27,665 64,666 421,232 276,491 Claims payable, due within one year - - - - 3,936,107 Total current liabilities 5,244,412 79,003 337,242 5,660,657 5,393,150 Noncurrent liabilities:
Loans payable, due more than one year 7,370,105 - - 7,370,105 2,591,257 Bonds payable, due more than one year 23,339,318 691,516 667,433 24,698,267 - Insurance assessment payable, due more than one year - - - - 163,514 Leases liabilities, due more than one year - - - - 93,959
Subscription liabilities, due more than one year - - - - 192,250 Compensated absences, due more than one year 62,115 5,225 12,213 79,553 52,218 Claims payable, due more than one year - - - - 17,828,882 Net pension liability 778,846 77,006 216,159 1,072,011 527,562 Net OPEB liability 1,163,225 123,884 379,697 1,666,806 651,598 Total noncurrent liabilities 32,713,609 897,631 1,275,502 34,886,742 22,101,240 Total liabilities 37,958,021 976,634 1,612,744 40,547,399 27,494,390
DEFERRED INFLOW OF RESOURCES
OPEB related 262,236 27,928 85,598 375,762 146,895 Total deferred inflows of resources 262,236 27,928 85,598 375,762 146,895
NET POSITION
Net investment in capital assets 43,670,554 29,283 5,714,701 49,414,538 2,062,189 Restricted 6,275 - - 6,275 - Unrestricted (deficit) 1,269,135 (28,639) 9,759,387 10,999,883 (9,946,675) Total net position (deficit) 44,945,964$ 644$ 15,474,088$ 60,420,696$ (7,884,486)$ Adjustment to reflect the consolidation of internal service funds activities to related enterprise funds (4,775,411) (619,647) 934,221 (4,460,837) Net position (deficit) of business-type activities 40,170,553$ (619,003)$ 16,408,309$ 55,959,859$ Enterprise Funds
City of Monterey Park
Statement of Net Position (Continued)
Proprietary Funds
June 30, 2025
Governmental
ActivitiesBusiness-Type Activities
See accompanying Notes to the Basic Financial Statements 35
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36
Internal
Water Utility Refuse Sewer Total Service
OPERATING REVENUES:
Charges for services 18,577,007 $ 1,812,874 $ 6,423,741 $ 26,813,622 $ 27,230,594 $ Meter installations 92,925 - - 92,925 - Miscellaneous 1,040,897 - 40,344 1,081,241 202,839 Total operating revenues 19,710,829 1,812,874 6,464,085 27,987,788 27,433,433 OPERATING EXPENSES:
Operation 9,104,229 1,350,954 2,433,418 12,888,601 286,721 Salaries and Benefits 3,075,248 274,633 906,369 4,256,250 7,160,011 General and administrative 840,610 143,956 146,809 1,131,375 - Depreciation and amortization expense 2,487,877 9,317 282,858 2,780,052 741,090 Materials and supplies 1,122,574 1,969 56,342 1,180,885 5,987,495 Insurance and claims - - - - 9,137,940 Total operating expenses 16,630,538 1,780,829 3,825,796 22,237,163 23,313,257 OPERATING INCOME (LOSS) 3,080,291 32,045 2,638,289 5,750,625 4,120,176 NONOPERATING REVENUES (EXPENSES):
Investment earnings 1,089,805 10,590 413,274 1,513,669 - Interest expense (1,105,153) (18,169) (17,537) (1,140,859) - Total nonoperating income (loss) (15,348) (7,579) 395,737 372,810 - NET INCOME (LOSS) BEFORE TRANSFERS 3,064,943 24,466 3,034,026 6,123,435 4,120,176
CAPITAL CONTRIBUTIONS AND TRANSFERS
Capital contributions -
- - - 17,572 Transfers in - - - - 51 Transfers out (51) - (51) - Total capital contributions and transfers (51) - - (51) 17,623 CHANGES IN NET POSITION 3,064,892 24,466 3,034,026 6,123,384 4,137,799 NET POSITION (DEFICIT):
Beginning of year, as previously reported 41,925,511 (18,061) 12,453,069 54,360,519 (11,990,644) Change in accounting principle (GASB 101) (44,439) (5,761) (13,007) (63,207) (31,641) Beginning of year, as restated (Note 18) 41,881,072 (23,822) 12,440,062 54,297,312 (12,022,285) End of the year 44,945,964$ 644 $ 15,474,088$ 60,420,696 $ (7,884,486) $ Change in Net Position 3,064,892 $ 24,466 $ 3,034,026 $ 6,123,384 $ Adjustment to Reflect the Consolidation of
Internal Service Fund Activities to
Related Enterprise Fund 571,326 - 446,681 1,018,007 Changes in Net Position
of Business-type Activities 3,636,218 $ 24,466 $ 3,480,707 $ 7,141,391 $ City of Monterey Park
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
For the Year Ended June 30, 2025
Enterprise Funds
Business-Type Activities
Governmental
Activities
See accompanying Notes to the Basic Financial Statements 37
Internal
Water Utility Refuse Sewer Total Service Fund
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers and users 18,091,528 $ 2,478,466 $ 6,235,990 $ 26,805,984 $ 27,433,433 $ Cash paid to suppliers for goods and services (10,363,983) (2,026,743) (2,451,576) (14,842,302) (6,297,714) Cash paid to employees for services (3,000,370) (271,770) (852,065) (4,124,205) (7,072,131) Cash paid for insurance claims - - - - (9,298,519) Net cash provided by operating activities 4,727,175 179,953 2,932,349 7,839,477 4,765,069 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Cash paid to other funds - - - - (730,331) Principal paid on pension obligation bonds (127,927) (28,010) (27,034) (182,971) - Interest paid on pension obligation bonds (83,417) (18,264) (17,628) (119,309) - Net cash (used in)
noncapital financing activities (211,344) (46,274) (44,662) (302,280) (730,331)
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Acquisition of capital assets (4,057,262) - (339,741) (4,397,003) (390,131) Proceeds from the issuance of new debts - - - - 2,861,549 Principal paid (1,284,429) - - (1,284,429) (307,241) Interest paid (785,717) - - (785,717) - Net cash provided by (used in) capital
and related financing activities (6,127,408) - (339,741) (6,467,149) 2,164,177 CASH FLOWS FROM INVESTING ACTIVITIES:
Interest received 1,076,608 9,724 395,589 1,481,921 - Net cash provided by investing activities 1,076,608 9,724 395,589 1,481,921 -
Net change in cash and cash equivalents (534,969) 143,403 2,943,535 2,551,969 6,198,915 CASH AND CASH EQUIVALENTS:
Beginning of year 23,411,543 219,867 7,131,898 30,763,308 10,449,341 End of year 22,876,574$ 363,270 $ 10,075,433 $ 33,315,277 $ 16,648,256 $ CASH AND CASH EQUIVALENTS:
Cash and investments 4,370,225 $ 363,270 $ 10,075,433 $ 14,808,928 $ 13,786,707 $ Restricted cash 18,500,074 - - 18,500,074 - Cash and investments with fiscal agent 6,275 - - 6,275 2,861,549 Total cash and cash equivalents 22,876,574$ 363,270 $ 10,075,433 $ 33,315,277 $ 16,648,256 $ For the Year Ended June 30, 2025
Proprietary Funds
Statement of Cash Flows
City of Monterey Park
Enterprise Funds
Governmental
ActivitiesBusiness-Type Activities
See accompanying Notes to the Basic Financial Statements 38
Internal
Water Utility Refuse Sewer Total Service Fund
Reconciliation of operating income (loss) to
net cash provided by (used in) operating activities:
Operating income (loss) 3,080,291$ 32,045$ 2,638,289$ 5,750,625 4,120,176$ Adjustments to reconcile to net cash provided by
(used in) operating activities:
Depreciation/Amortization 2,487,877 9,317 282,858 2,780,052 741,090 Changes in assets and liabilities:
(Increase) decrease in accounts receivables (1,622,699) 665,592 (228,095) (1,185,202) - (Increase) decrease in prepaid items 2,571 - - 2,571 - (Increase) decrease in deferred outflows
- pension related 803,814 46,730 268,076 1,118,620 566,768 (Increase) decrease in deferred outflows
- OPEB related 38,779 4,183 7,202 50,164 23,020 Increase (decrease) in accounts payable 700,859 (529,864) 184,993 355,988 (3,499) Increase (decrease) in accrued liabilities 21,136 (743) 3,605 23,998 69,682 Increase (decrease) in deposits payable 3,398 - - 3,398 - Increase (decrease) in compensated absences (3,606) 4,166 13,090 13,650 (43,686) Increase (decrease) in claims payable - - - - (180,578) Increase (decrease) in net pension liability (507,763) (21,964) (179,721) (709,448) (363,168) Increase (decrease) in total OPEB liability (150,275) (16,248) (23,882) (190,405) (90,164) Increase (decrease) in deferred inflows
- pension related (12,059) (928) (3,711) (16,698) (8,350) Increase (decrease) in deferred inflows
- OPEB related (115,148) (12,333) (30,355) (157,836) (66,222)
Net cash provided by
operating activities 4,727,175$ 179,953 $ 2,932,349 $ 7,839,477 $ 4,765,069 $ NONCASH ITEMS:
Acquisition of lease and subscription assets -$ -$ -$ -$ (441,883)$ Issuance of lease and subscription liabilities -$ -$ -$ -$ 441,883$ Capital contribution -$ -$ -$ -$ 17,572$ Transfer of leases assets from Enterprise Fund to
Internal Service Fund (1,511)$ -$ -$ (1,511)$ 1,511$ Transfer of leases liability from Enterprise Fund to
Internal Service Fund 1,460$ -$ -$ 1,460$ (1,460)$ Enterprise Funds
City of Monterey Park
Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements 39
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40
FIDUCIARY FUND FINANCIAL STATEMENTS
41
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42
Custodian Private-Purpose
Fund Trust Fund
ASSETS
Current assets:
Cash and investments 966$ 169,504 $ Cash and investments with fiscal agent - 2,030,440 Accounts receivable - 3,899
Total assets 966 2,203,843
LIABILITIES
Current liabilities:
Accounts payable - 95
Accrued liabilities - 3,804
Deposit payable 966 -
Interest payable - 71,654
Advances from City of Monterey Park, due within one year - 137,342 Long term debt, due within one year - 2,385,810 Total current liabilities 966 2,598,705 Noncurrent liabilities
Advances from City of Monterey Park, due in more than one year - 484,282 Long-term debt, due in more than one year - 100,407,287 Total noncurrent liabilities - 100,891,569
NET POSITION (DEFICIT)
Restricted for Successor Agency -$ (101,286,431)$ June 30, 2025
Statement of Fiduciary Net Position
City of Monterey Park
Fiduciary Funds
See accompanying Notes to the Basic Financial Statements 43
Custodian Private-Purpose
Fund Trust Fund
ADDITIONS
Redevelopment property tax trust fund -$ 2,916,249$ Investment income - 47,687
Other income - 1,186,222
Total additions - 4,150,158
DEDUCTIONS
Administration - 192,000
Interest expense and fiscal charges - 6,511,234 Total deductions - 6,703,234 CHANGE IN NET POSITION - (2,553,076)
NET POSITION (DEFICIT)
Beginning of year - (98,733,355) End of year -$ (101,286,431)$
City of Monterey Park
Statement of Change in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements 44
45 NOTES TO THE BASIC FINANCIAL STATEMENTS
46 This page intentionally left blank.
City of Monterey Park
Index to the Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
47 Page
Note 1 – Summary of Significant Accounting Policies ..................................................................................... 49
A. Description of the Reporting Entity ........................................................................................ ....... 49 B. Basis of Accounting and Measurement Focus ............................................................................... 49 C. Cash and Investments ....................................................................................................... .............. 52 D. Accounts Receivable and Due from Other Governments .............................................................. 53 E. Loans and Notes Receivable ................................................................................................. ......... 53 F. Prepaid Items .............................................................................................................. .................... 53 G. Leases ..................................................................................................................... ........................ 54 H. Capital Assets ............................................................................................................. .................... 55 I. Subscription-Based Information Technology Arrangements (SBITAs) ........................................ 56 J. Deferred Outflows/Inflows of Resources ..................................................................................... .. 56 K. Unearned and Unavailable Revenue ........................................................................................... ... 57 L. Compensated Absences .................................................................................................................. 57 M. Net Pension Liability ...................................................................................................... ................ 57 N. Other Postemployment Benefits Liability .................................................................................... .. 58 O. Claims Payable ............................................................................................................................... 58 P. Net Position ............................................................................................................... ..................... 58 Q. Fund Balances .............................................................................................................. .................. 59 R. Property Taxes ............................................................................................................. .................. 60 S. Use of Estimates ........................................................................................................... .................. 60 T. Implementation of New GASB Pronouncements .......................................................................... 60
Note 2 – Cash and Investments .......................................................................................................................... 60
A. Demand Deposits ............................................................................................................ ............... 61 B. Investments Authorized by the California Government
Code and the City's Investment Policy ........................................................................................ ... 62 C. Investments Authorized by Debt Agreement ................................................................................. 6 2 D. Investment in Local Agency Investment Fund (LAIF) .................................................................. 62 E. Fair Value Measurements .................................................................................................... ........... 63 F. Disclosures Relating to Interest Rate Risk ..................................................................................... 63 G. Disclosures Relati ng to Credit Risk ............................................................................................... 64 H. Concentration of Credit Risk ............................................................................................... ........... 64 I. Custodial Credit Risk ...................................................................................................... ............... 64
Note 3 – Loans Receivable .................................................................................................................................. 65
Note 4 – Leases Receivable ................................................................................................................................. 66
Note 5 – Interfund Transactions ........................................................................................................................ 67
A. Due to/from Other Funds .................................................................................................... ........... 67 B. Transfers .................................................................................................................. ....................... 67
Note 6 – Receivables From Successor Agency .................................................................................................. 68
Note 7 – Capital Assets ....................................................................................................................................... 69
City of Monterey Park
Index to the Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2025
48 Page
Note 8 – Long-Term Liabilities ........................................................................................................................... 71
A. Governmental Activities .................................................................................................... ............. 71 B. Business-Type Activities ................................................................................................... .............. 76 C. Fiduciary Activities ......................................................................................................................... 77
Note 9 – Due To Other Governmental Agencies ............................................................................................... 80
Note 10 – Defined Benefit Pension Plans ............................................................................................................ 80
California Public Employees’ Retirement System Plan
A. General Information a bout the Pension Plans ................................................................................. 80 B. Net Pension Liability ...................................................................................................... ................. 82 C. Changes in the Ne t Pension Liability .............................................................................................. 84 D. Pension Expenses and Deferred Outflows/Inflo ws of Resources Related to Pensions ................... 85
Massachusetts Mutual Retirement Plan - Defined Benefit Plan E. General Information a bout the Pension Plans ................................................................................. 86 F. Net Pension Liability ...................................................................................................... ................. 87 G. Changes in the Ne t Pension Liability .............................................................................................. 88 H. Pension Expenses and Deferred Outflows/Inflo ws of Resources Related to Pensions ................... 89
Note 11 – Defined Contribution Pension Plans - Monterey Park Part-Time Retirement Plan .................... 89
Note 12 – Other Postemployment Healthcare Plan ........................................................................................... 90
A. Plan Description ........................................................................................................... ................... 90 B. Total OPEB Liability ....................................................................................................... ............... 91 C. Changes in total OPEB Liability ............................................................................................ ......... 92 D. OPEB Expense and Deferred Outflows/Inf lows of Resources Related to OPEB ........................... 93
Note 13 – Risk Management ................................................................................................................................ 94
Note 14 – Stewardship, Compliance and Accountability .................................................................................. 95
A. Deficit Fund Balance/Net Position .......................................................................................... ........ 95 B. Excess of Expenditures over Appropriations ................................................................................. . 95
Note 15 – Net Investment in Capital Assets ....................................................................................................... 96
Note 16 – Classification of Fund Balances ......................................................................................................... 97
Note 17 – Commitments and Contingencies ...................................................................................................... 98
A. Commitments ................................................................................................................ .................. 98 B. Contingencies .............................................................................................................. .................... 98
Note 18 – Restatement of Beginning Net Positions and Fund Balances .......................................................... 98
City of Monterey Park
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
49 Note 1 – Summary of Significant Accounting Policies
The basic financial statements of the City of Monterey Park, California, (the “City”) have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) as applied to governmental agencies. The Governmental Accountin g Standards Board (“GASB”) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The following is a summary of the City’s significant policies:
A. Description of the Reporting Entity
The City was incorporated May 29, 1916 under the genera l laws of the State of California and enjoys all the rights and privileges pertaining to General Law cities. The City is governed by an elected five-member City Council. As required by generally accepte d accounting principles in the United States of America, the financial statements include the financial activities of the City (the primary government), the Monterey Park Public Financing Authority (the “Financing Authority”), and the Monterey Park Housing Authority (the “Housing Authority”). Although the Financing Authority and Housi ng Authority are legally separate from the City, they have been “blended” as though they are part of th e City because the component units’ governing body are substantially the same as the City’s and there is a financ ial benefit or burden relationship between the City and the component units; management of the City has opera tional responsibilities for the component units; and/or the component units provide services entirely, or almost entirel y, to the City or otherwise exclusively, or almost exclusively, benefits the City, even though they do not provide services directly to it.
Blended Component Units
The Monterey Park Public Financing Authority
The Financing Authority was organized in May 1989 unde r a joint exercise of power agreement to provide for the financing of public capital improvements for the City and the former Redevelopment Agency of Monterey Park. The members of the City Council act as the govern ing board of the Financing Authority and there is a financial benefit or burden relationship between the City and the Fina ncing Authority. The Financing Authority does not issue separate financial statements.
The Monterey Park Housing Authority
The Housing Authority was established in September 1992 to provide affordable housing within the City. The members of the City Council act as the governing board of the Housing Authority and there is a financial benefit or burden relationship between the City and the Hous ing Authority. The Housing Authority does not issue separate financial statements.
B. Basis of Accounting and Measurement Focus
Government-Wide Financial Statements
The City Government–Wide Financial Statements incl ude a Statement of Net Position and a Statement of Activities and Changes in Net Position. These statements present summaries of governmental and business-type activities for the City, the primary government, accompanie d by a total column. Fiduciary activities of the City are not included in these statements.
Fiduciary activities of the City are not included in these statements.
City of Monterey Park
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
50 Note 1 – Summary of Significant Accounting Policies (Continued)
B. Basis of Accounting and Measurement Focus (Continued)
Government-Wide Financial Statements (Continued)
These financial statements are presented on an “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all of the City’s assets and liabilities, including capital assets, as well as infrastructure assets, and long-term liabilities, are include d in the accompanying Statement of Net Position. The Statement of Activities presents changes in 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 the liability is incurred.
Certain types of transactions are reported as program revenues for the City in three categories:
Charges for services
Operating grants and contributions
Capital grants and contributions
Certain eliminations have been made in regard to interfund activities, pa yables and receivables. All internal balances in the Statement of Net Position have been e liminated except those representing balances between the governmental activities and the business-type activities, wh ich are presented as internal balances and eliminated in the total primary government column. However, t hose transactions between governmental and business-type activities have not been eliminated. The following interfund activities have been eliminated:
Due to/from other funds
Advances to/from other funds
Transfers in/out
The accounts of the City are organized on the basis of fu nds, each of which is cons idered a separate accounting entity. The operations of each fund are accounted for by pr oviding a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Fund accounting segregates funds according to their intended purpo se and is used to aid management in demonstrating compliance with finance-related lega l and contractual provisions. The mini mum number of funds is maintained in accordance with legal and managerial requirements.
Governmental Fund Financial Statements
Governmental Fund Financial Statements include a Ba lance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances for all major govern mental funds and nonmajor funds aggregated. An accompanying schedule is presented to reconcile and expl ain the differences between fund balance as presented in these statements to the net position presented in the Government-Wide Financial Statements. The City has presented all major funds that met the applicable criteria.
All governmental funds are accounted for on a spending or "current financial resources" measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the Balance Sheet. The Statement of Revenues, Expend itures and Changes in Fund Balances presents increases (revenues and other financing sources) and decreases (expe nditures and other financing uses) in net current assets. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period.
City of Monterey Park
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
51 Note 1 – Summary of Significant Accounting Policies (Continued)
B. Basis of Accounting and Measurement Focus (Continued)
Governmental Fund Financial Statements (Continued)
Revenues are recognized as soon as they are both “measura ble” and “available”. Revenues are considered to be available when they are collectible within the current period or soon enoug h thereafter to pay liabilities of the current period. For this purpose, the City considers revenu es to be available if they ar e collected within 60 days of the end of the current fiscal period. The primary reve nue sources, which have been treated as susceptible to accrual by the City, are property tax, sales tax, intergove rnmental revenues and other taxes. Expenditures are recorded in the accounting period in which the related fund liability is incurred.
The City reports the following major governmental funds:
General Fund – This fund is used to account for r esources traditionally associated with governments which are not required by law or sound financial management to be accounted for in another fund.
Special Revenue Grants Fund – This fund has b een established to account for the grants requiring segregated fund accounting. Financing is provided by federal, state and county agencies.
Special Revenue Retirement/Pension Liability Fund – This fund was established to account for revenue received from voter-approved property ta x levied to provide for employee retirement costs, as established pursuant to Monterey Park Municipal Code Section 2.40.060 and to account for the financial resources provided by the City in anticipation of estimated increases in retirement costs.
Special Revenue Housing Fund – This fund is used to account for housing activities for the City and revenue received from housing loan repayments and rental income.
Street Capital Projects Fund – This fund is u sed to account for funds accumulated for street related capital projects.
Proprietary Funds Financial Statements
Proprietary Funds Financial Statements include a Statemen t of Net Position, a Statement of Revenues, Expenses and Changes in Fund Net Position, and a Statement of Cash Flows for each major Proprietary Fund.
A separate column representing internal service funds is also presented in these statements. However, internal service balances and activities have been combined with the governmental and business-type activities in the Government-Wide Financial Statements. The City’s internal service funds include seven individual funds which provide services directly to other City 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 (revenues) 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 rec ognized in the period in which the liability is incurred.
In these funds, receivables have been recorded as reve nue and provisions have been made for uncollectible amounts.
Operating revenues in the proprietary funds are those re venues 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.
City of Monterey Park
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
52 Note 1 – Summary of Significant Accounting Policies (Continued)
B. Basis of Accounting and Measurement Focus (Continued)
Proprietary Funds Financial Statements (Continued)
The City reports the following major enterprise funds:
The Water Utility Enterprise Fund is used to account for operations that are financed and operated in a
manner similar to private business enterprises and where the intent of the City is that the costs (expenses, including depreciation and amortization) of providing goods services to the general public on a continuing basis be financed or recovered primarily through user charges. The City accounts fo r its water utility in this fund.
The Refuse Enterprise Fund is used to account for receipts and expenditures relating to waste management activities including refuse collection, disposal and reduction.
The Sewer Enterprise Fund is used to account for r eceipts and expenses for construction and improvement to deficient sanitary mains identified in the Sewer Master Plan.
Additionally, the City reports the following proprietary fund types:
Internal Service Funds
The Internal Service Funds are utilized to finance and a ccount for activities involved in rendering services to departments within the City. Co sts of services are accumulated in these funds and charged to user departments as such costs are incurred. The City maintains seven internal service funds for separation benefits, general liability claims, workers’ compensation claims, auto shop operations, technology development, fringe benefits, and building maintenance.
Fiduciary Fund Financial Statements
Fiduciary fund financial statements include a Statement of Fiduciary Net Position. The City maintains a fiduciary fund (private–purpose trust fund) for the Successor Agen cy to the former Commun ity Development Agency.
Private-purpose trust funds include a Statement of Net Position and a Statement of Changes in Fiduciary Net Position. the private purpose trust funds are accounted for on the full accrual basis of accounting where the assets associated with the activity are controlled by the City and the assets are not derived 1) solely from the government’s own-source revenues or 2) from govern ment-mandated nonexchange transactions or voluntary nonexchange transactions.
The City reports the following two types of fiduciary funds:
Custodial Funds - Custodial Fund is clearing type fund for the collection of taxes or deposits held in trust, on behalf of individuals, private or ganizations, and other governments for which the City has a custodial responsibility. This fund is used to account for f unds collected from asset seizure and private donations received for the community assistance program.
Private-Purpose Trust Fund - Private purpose trust fund is used to report all other trust arrangements under which principal and income benefit individuals, privat e organizations, or other governments. This fund was created as a result of the State order to dissolve California Redevelopment Agencies. As a Successor Agency, this fund is used to track the activity by the Oversight Board and the Stat e Department of Finance to dissolve the Agency.
City of Monterey Park
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
53 Note 1 – Summary of Significant Accounting Policies (Continued)
C. Cash and Investment
The City pools its available cash for investment purpo ses. Highly liquid market investments with maturities of one year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value.
U.S. GAAP defines fair value, establishes a framework for measuring fair value and establishes disclosures about fair value measurement. Investments, unless otherwise sp ecified, recorded at fair value in the financial statements, are categorized based upon the level of judgment associated with the inputs used to measure their fair value.
The three levels of the fair value measurement hierarchy are described below:
Level 1 – Inputs are unadjusted, quoted prices for identi cal assets and liabilities in active markets at the measurement date.
Level 2 – Inputs, other than quoted prices included in Level 1, that are observable for the assets and liabilities through corroboration with market data at the measurement date.
Level 3 – Unobservable inputs that reflect management’s be st estimate of what market participants would use in pricing the assets and liabilities at the measurement date.
The statement of cash flows requires presentation of “cash and cash equivalents”. For this purpose, the City considers all proprietary fund pooled cash and investments as “cash and cash equivalents”, as such funds are available to the various funds as needed.
Certain disclosure requirements, if applicable, for Deposits and Investment Risks in the following areas:
Interest Rate Risk
Credit Risk
- Overall
- Custodial Credit Risk
- Concentration of Credit Risk
In addition, other disclosures are speci fied including use of certain methods to present deposits and investments, highly sensitive investments, credit quality at year-end and other disclosures.
D. Accounts Receivable and Due from Other Governments
All accounts and due from other governments are shown ne t of any allowance for uncollectible accounts, if applicable, and estimated refunds due.
E. Loans and Notes Receivable
The accompanying financial statements reflect the record ing of certain loans and notes receivable that represent loans made to various parties for homebuyer and rehab ilitation loan programs. Wher e reasonably estimable, an allowance for doubtful accounts has been recorded to reflect management’s best estimate of probable losses associated with nonrepayment. An estimate of any add itional potential losses associated with nonrepayment cannot be reasonably estimated at this time.
F. Prepaid Items
Prepaid items are payments made to vendors for services th at will benefit periods beyond the fiscal year ended using consumption method.
City of Monterey Park
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
54 Note 1 – Summary of Significant Accounting Policies (Continued)
G. Leases
Lessor
The City is a lessor for leases of buildings and land and recognizes leases receivable and deferred inflows of resources in the financial statements. Variable payments based on future performance or usage of the underlying asset are not included in the measurement of the lease receivable.
At the commencement of a l ease, the lease receivable is measured at th e present value of payments expected to be received during the lease term. Sub sequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflows of resources are initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencemen t date. Subsequently, the deferred inflows of resources are recognized as revenue over the life of the lease term in a systematic and rational method.
Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts.
The City uses the average of the LAIF rate and the incremental borrowing rate (IBR) provided by the City’s financial institution for existing leases or the current rate at the time a new lease is executed. The lease term includes the noncancelable period of the lease plus any option periods that are likely to be exercised.
Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee.
The City monitors changes in circum stances that would require a remeasureme nt of its lease and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that ar e expected to significantly affect the amount of the lease receivable.
Lessee
The City has a policy to recognize a lease liability and a right -to-use asset (lease asset) in the financial statements with an initial, individual value of $ 25,000 or more with a lease term greater than one year. Variable payments based on future performance or usage of the underlying asset s are not included in the measurement of the lease liability.
At the commencement of a lease, the l ease liability is measured at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made.
Lease assets are recorded at the amount of the initial measurement of the lease liabilities and modified by any lease payments made to the lessor at or before the commencement of the lease term, less any lease incentives received from the lessor at or before the commencement of the lease term along with any initial direct costs that are ancillary charges necessary to place the lease assets into service. L ease assets are amortized using the straight–line method over the shorter of the lease term or the useful life of the underlying asset, unless the lease contains a purchase option that the State has determined is reasonably certain of being exercised. In this case, the lease asset is amortized over the useful life of the underlying asset.
City of Monterey Park
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
55 Note 1 – Summary of Significant Accounting Policies (Continued)
G. Leases (Continued)
Lessee (Continued)
Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments.
The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases.
The lease term includes the noncancelable period of the lease, plus any option periods that are reasonably certain to be exercised.
Lease payments included in the measurement of the le ase liability are composed of fixed payments and purchase option price that the City is reasonably certa in to exercise. The City monitors changes in circumstances that would require a remeasurement of a lease and will remeasure any lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability.
Lease assets are reported as right-to-use along with other capital assets and lease liabilities are reported as long- term liabilities on the statement of net position.
H. Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (roads, sidewalks, drainage systems, lighting systems, etc.), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. These assets are valued at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are va lued at their acquisition va lue. Lease assets, which include equipment, follow the same ca pitalization thresholds as capital asset s. Lease assets are recorded at the amount of the initial measurement of the lease liabilities and modified by any lease payments made to the lessor at or before the commencement of the lease term.
The costs of normal maintenance and repairs that do not ad d to the value of the asset or materially extend the life of assets are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. The capitalization threshold for property, plant and equipment is $10,000 and for infrastructure assets is $100,000. Depreciation is recorded in the governme nt-wide financial statements on a straight-line basis over the useful life of the depreciable assets.
Depreciation is charged to operations, using a straight- line method based on the following average useful lives of the assets:
Buildings 30 to 50 years
Improvements 5 to 25 years
Equipment 5-25 years
Autos and Automotive Equipment 5-12 years
Furniture and Fixtures 5 to 10 years
Right-of-Way Networks 20 to 60 years
Storm Drain System 30 to 60 years
Sewer System 30 to 60 years
City of Monterey Park
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
56 Note 1 – Summary of Significant Accounting Policies (Continued)
I. Subscription-Based Information Technology Arrangements (SBITAs)
The City has a policy to recognize a subscription liability and a right ‐to‐use subscription asset (subscription asset) in the financial statements. The City recognizes sub scription liabilities with an initial, individual value of $25,000 or more with a subscription te rm greater than one year. Variable payments based on future performance of the City, usage of the underlying IT asset, or number of user seats are not included in the measurement of the subscription liability, rather, those variable payments ar e recognized as outflows of resources (expenses) in the period the obligation for those payments is incurred.
At the commencement of a SBITA, th e City initially measures the subscrip tion liability at the present value of payments expected to be made during the subscription term. Subsequently, the sub scription liability is reduced by the principal portion of subscription payments made.
Subscription assets are recorded at the amount of the initia l measurement of the subscription liabilities, plus any payments made to the SBITA vendor before the commencement of the subscription term, and capitalizable initial implementation cost, less any incentives received from the SBITA vendor at or before the commencement of the subscription term.
Preliminary Project Stage: Outlays are expensed as incurred. Initial Implementation Stage: Outlays are capitalized as an addition to the subscription asset.
Upon adoption, the City elected to exclude the capitali zable outlays associated with the initial implementation stage and the operation and additional implementation stage that were incu rred prior to the implementation of this Statement in the measurement of subscription assets as of July 1, 2022.
Subscription assets are reported within capital assets and subscription liabilities are reported with long-term liabilities on the statement of net position. Subscription assets are amortized using the straight-line method over the shorter of the subscription term or the useful life of the underlying IT asset, unless the subscription contains a purchase option that the City has determined is reasona bly certain of being exercised. In this case, the subscription asset is amortized over the useful life of the underlying IT asset.
Key estimates and judgments related to SBITA include how the City determines (1) the discount rate it uses to discount the expected subscription payments to presen t value, (2) subscription term, and (3) subscription payments.
The City uses the interest rate charged by the SBIT A vendor as the discount rate. When the interest rate charged by the SBITA vendor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for SBITA.
The subscription term includes the noncancellable pe riod of the SBITA. Subscription payments included in the measurement of the subscription liability ar e composed of fixed payments and purchase option price that the City is reasonably certain to exercise.
J. Deferred Outflows/Inflows of Resources
The statement of financial position reports separate sec tions for deferred outflows of resources and deferred inflows of resources, when applicable.
Deferred Outflows of Resources represent a consumption of net assets that applies to future periods. The City reports pension contribution after m easurement date and deferred loss related to pension, OPEB, debt refunding in this category.
City of Monterey Park
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
57 Note 1 – Summary of Significant Accounting Policies (Continued)
J. Deferred Outflows/Inflows of Resources (Continued)
Deferred Inflows of Resources represent an acquisition of net assets that applies to future periods. The City reports unavailable revenues and deferred gain related to pension and OPEB in this category.
K. Unearned and Unavailable Revenue
Unearned revenue is reported for transa ctions for which revenue has not yet been earned. Typical transactions recorded as unearned revenues are prepaid charges for services.
In the governmental fund financial st atements, unavailable revenue is repor ted when transactions have not yet met the revenue recognition criteria based on the modifi ed accrual basis of accounting. The City reports unavailable revenue when an asset is reported in governmen tal fund financial statements but the revenue is not available.
L. Compensated Absences
The cost of earned but unused vacation and sick leave, for which the City has a future obligation to pay, is recognized in the government-wide and proprietary fund financial statements. A liability for these amounts is reported in governmental funds only if they become due and payable as a result of employee resignations or retirements.
M. Net Pension Liability
For purposes of measuring the net pension liability, defe rred outflows and inflows of resources related to pensions, and pension expense, information about the fi duciary net position and additions to/deductions from the fiduciary net position have been determined on the same basis as they are reported by the plans. 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 re ported at fair value. General Fund and special revenue funds are typically used to liquidate pension liabilities for governmental funds.
The following timeframes are used for pension reporting:
CalPERS MMRP
Valuation Date June 30, 2023 June 30, 2023
Measurement Date June 30, 2024 June 30, 2025
Measurement Period July 1, 2023 to June 30, 2024 July 1, 2024 to June 30, 2025
Gains and losses related to changes in total pension lia bility and fiduciary net position are recognized in pension expense systematically over time. The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categor ized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense. The amortization period differs depending on the source of the gain or loss. The diff erence between projected and actual earnings is amortized straight-line over 5 years. All other amounts are amorti zed straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period.
City of Monterey Park
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
58 Note 1 – Summary of Significant Accounting Policies (Continued)
N. Other Postemployment Benefits Liability
For purposes of measuring the net OPEB liability and de ferred outflows/inflows of resources related to OPEB, and OPEB expense, information about the fiduciary ne t position of the City’s California Public Employees Medical and Hospital Care Act (PEMCHA) plans (OPEB Plans) and additions to/deductions from the OPEB Plans’ fiduciary net position have been determined on the same basis as th ey are reported by PEMCHA. For this purpose, the City’s OPEB Plan recognizes benefit paym ents when due and payabl e in accordance with the benefit terms. Investments are reported at fair value. General Fund and special revenue funds are typically used to liquidate OPEB liabilities for governmental funds.
The following timeframes are reported OPEB reporting:
Valuation Date June 30, 2023
Measurement Date June 30, 2024
Measurement Period July 1, 2023 to June 30, 2024
Gains and losses related to changes in total OPEB liab ility and fiduciary net position are recognized in OPEB expense systematically over time. The first amortized am ounts are recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categor ized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in fu ture pension expense. The amortization period differs depending on the source of the gain or loss. The diff erence between projected and actual earnings is amortized straight-line over five years. All other amounts are amorti zed straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period.
O. Claims Payable
The accrual for workers’ compensation and general liability claims is based upon past experience which has been modified for current trends and information. While the ultimate amount of losses incurred through June 30, 2025 is dependent on future developments , based on information from the plan administrators, City management believes that the aggregate accrual is adequate to cover such losses, including amounts for incurred but not reported claims.
P. Net Position
In the government-wide financial statements and proprietary fund financial statements, net position is classified as follows:
Net Investment in Capital Assets – This component of net position consists of capital assets, net of accumulated depreciation and amortization and rela ted deferred charges on refunding, reduced by the outstanding balances of debt that are attributable to the acquisition, construction, or improvement of those items, including retention payable, net of unspent debt proceeds.
Restricted – This component of net position consists of r estricted assets reduced by liabilities and deferred inflows of resources related to those assets. Separa te line items are used to distinguish among major categories of restrictions and are further displayed as expendable or nonexpendable based on the nature of the restriction.
City of Monterey Park
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
59 Note 1 – Summary of Significant Accounting Policies (Continued)
P. Net Position (Continued)
Unrestricted – This component of net position is the amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of res ources that are not included in the de termination of net investment in capital assets or the restricted component of net position.
When expenses are incurred for purpo ses for which both restricted and unrestricted components of net position are available, the City’s policy is to apply the restricted component of ne t position first, then the unrestricted component of net position as needed.
Q. Fund Balances
In the governmental fund financial statements, fund balances are classified as follows:
Nonspendable fund balance includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact. The City’s nonspendable fund balance represents prepaid items, and loans receivabl e unless the proceeds from the collection of those loans receivable is restricted, committed, or assigned.
Restricted fund balance encompass the portion of net fund resources subject to externally enforceable legal restrictions. This includes externally imposed restric tions by creditors, such as through debt covenants, grantors, contributors, laws or regulations of othe r governments, as well as restrictions imposed by law through constitutional provisions or enabling legislation.
Committed fund balance This amount indicates the portion of fund balances which can only be used for specific purposes pursuant to formal resolution of the City Council. The City Council is considered the highest authority for the City. Adop tion of a resolution by the City Counc il is required to commit resources or to rescind the commitment.
Assigned fund balance consists of funds that are set aside for sp ecific purposes by the City’s highest level of decision-making authority or a body or official that has been given the authority to assign funds. The City Manager is authorized by the City Council by resolution to determine and define the amount of assigned fund balances.
Unassigned fund balance is the residual classification for the City ’s fund balance and includes all spendable amounts not contained in the other classifications. This category also provides the resources necessary to meet unexpected expenditures and reve nue shortfalls. The General Fund is the only fund that reports a positive unassigned fund balance amount.
When expenditures are incurred for purposes where only unr estricted fund balances are available, the City uses the unrestricted resources in the following order, excep t for instances wherein an ordinance specifies the fund balance:
Restricted
Committed
Assigned
Unassigned
City of Monterey Park
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
60 Note 1 – Summary of Significant Accounting Policies (Continued)
R. Property Taxes
Under California law, property taxes are assessed and co llected by the counties at 1% of assessed value plus other increases approved by the voters. Property taxes collected go into a pool and are then allocated to the cities based on a predetermined formula. The City accrues only those taxes which are received from the County of Los Angeles within 60 days after year-end.
Lien Date: Janurary 1
Levy Date: July 1 to June 30
Due Dates: November 1 and Feburary 1
Delinquent Dates: December 11 and April 11
S. Use of Estimates
The preparation of financial statements in accordance w ith U.S. GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosure. Accordingly actual results could differ from those estimates.
T. Implementation of New GASB Pronouncements
During fiscal year ended June 30, 2025, the City has implemented the following new GASB Pronouncements:
GASB Statement No. 101 – In June 2022, the GASB issued Statement No. 101, Compensated Absences. The objective of this Statement is to better meet the info rmation needs of financial statement users by updating the recognition and measurement guidance fo r compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by ame nding certain previously required disclosures. The requirements of this Statement are eff ective for fiscal years beginning after December 15, 2023, and all reporting periods thereafter. Implementation of th is Statement resulted in a restatement of the beginning net position as of July 1, 2024, as presented in Note 18.
GASB Statement No. 102 – In December 2023, the GASB issued Statement No. 102, Certain Risk Disclosures.
The objective of this Statement is to provide users of government financial statemen ts with information about risks related to a government’s vulnerabilities due to certain concentrations or constraints that is essential to their analyses for making decisions or assessing accountability. The requirements of this Statement are effective for fiscal years beginning after June 15, 2024, and all repor ting periods thereafter. The City has evaluated its exposure to financial risk stemming from concentrations and constraints.
Note 2 – Cash and Investments
The City maintains a cash and investment pool, which in cludes cash balances and authorized investments of all funds.
Statement of
Governmental Business-type Fiduciary
Activities Activities Total Net Position Total
Cash and investments 90,101,321 $ 14,808,928 $ 104,910,249 $ 170,470 $ 105,080,719$ Restricted cash - 18,500,074 18,500,074 - 18,500,074 Cash and investment with fiscal agent 4,622,228 6,275 4,628,503 2,030,440 6,658,943 Total cash and investments 94,723,549 $ 33,315,277 $ 128,038,826 $ 2,200,910 $ 130,239,736 $ Government-Wide Statement of Net Position
City of Monterey Park
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
61 Note 2 – Cash and Investments (Continued)
Cash and investments at June 30, 2025 consisted of the following:
Cash and cash equivalents:
Petty cash 39,280 $
Demand deposits with financial institutions 25,769,681
Time certificates of deposit 279,761
Total cash and cash equivalents 26,088,722
Investments:
Local Agency Investment Fund 37,444,065
Negotiable Certificates of Deposit 7,668,483
Los Angeles County Treasury Pool 25,810,862
Money Market Mutual Fund 135,381
Investment securities 26,433,278
Investments with Fiscal Agent:
Money Market Mutual Fund 6,658,945
Total investments 104,151,014
Total cash and investments 130,239,736$
A. Demand Deposits
The carrying amount of the City’s demand deposits were $25,769,681 at J une 30, 2025. Bank balances before reconciling items were $26,587,443 at that date, the tota l amount of which was insured or collateralized with securities held by the pledging financial institutions in the City’s name as discussed below.
The California Government Code requires California ba nks and savings and loan associations to secure the City’s cash deposits by pledging securiti es as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor.
Thus, collateral for cash deposits is considered to be held in the City's name.
The market value of pledged securities must equal at least 110% of the City's cash deposits. California law also allows institutions to secure City depos its by pledging first trust deed mort gage notes having a value of 150% of the City’s total cash deposits. The City may waive co llateral requirements for cash deposits, which are fully insured up to $250,000 by the Federal Deposit Insuran ce Corporation (“FDIC”). The City has not waived the collateralization requirements.
The City follows the practice of pooling cash and investments of all funds except for funds required to be held by outside fiscal agents under the provisions of bond i ndentures. Interest income earned on pooled cash and investments is allocated quarterly to the General Fund and certain designated Special Revenue Funds based on the month-end cash and investment balances. Proceed s obtained from long-term debt issuances including construction, lease payment and reserve fund balances are held by the City or by fiscal agents on behalf of the City and invested in the City’s name. Interest income on proceeds of debt is credited di rectly to the related fund, as defined by the Bond Indenture.
Tax allocation bonds reserve balances held by fiscal ag ents were transferred to the Successor Agency from the Former Monterey Park Redevelopment Agency and were reported in the Fiduciary Fund.
City of Monterey Park
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
62 Note 2 – Cash and Investments (Continued)
B. Investments Authorized by the California Government Code and the City's Investment Policy
The table below identifies the investme nt types that are authorized by th e City's investment policy and the California Government Code. The table also identifies cer tain 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 th an the general provisions of the California Government Code or the City's investment policy.
Maximum Maximum
Maximum Percentage of Investment in One
Authorized Investment Type Maturity Portfolio Issuer
Local Agency Bonds 5 years None None
U.S. Treasury Obligation 5 years 30% 5%
U.S. Government Sponsored Agency Securities 5 years None None State Obligations - CA and Others 5 years 30% 5%
Collateralized Bank Deposits 5 years None None
Medium Term Notes issued by corporations 5 years 30% "A" or better ranking by nationally recognized rating service; U.S. domiciled corporations or licensed
depository
Local Agency Investment Fund (LAIF) N/A None None
Negotiable Certificates of Deposit 5 years 30% None
Maximum Maximum
Maximum Percentage of Investment in One
Los Angeles County Pooled Investment Fund None 10% of LACPIF pool balance
None
Banker's Acceptances 180 days 40% of portfolio (no
more than 30% in
any once commercial
bank)
"A" or higher rating for issuer's debt within U.S.
corporations and have assets in excess of $500 million.
Commercial Paper 270 days 10% None
Repurchase Agreement Not allowable Not allowable Not allowable Financial Futures & Financial option contracts 5 years 30% None Reverse Repurchase Agreements & Securities Lending
Agreements
Not allowable Not allowable Not allowable
Mortgage Pass-Through Securities 5 years 20%
"AA" or better ranking by nationally recognized rating
service
Money Market Mutual Funds 5 years 20% Highest ranking by not less than 2 largest rating services, have an SEC registered investment advisor
with 5+ years experience, assets under management
>$500 million
C. Investments Authorized by Debt Agreement
In addition to the investment types listed above, the City may also invest funds in money market mutual funds in accordance with bond indentures.
D. Investment in Local Agency Investment Fund (LAIF)
The City is a participant in LAIF which is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. As of June 30, 2025, the City had $37,444,065 invested in LAIF. LAIF determines fair value on its investment portfolio based on market quotations for those securities where market quotations are readily available and based on amortized cost or best estimate for those securities where market value is not readily available. LAIF is reported at amortized cost, which approximates fair value.
City of Monterey Park
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
63 Note 2 – Cash and Investments (Continued)
E. Fair Value Measurements
At June 30, 2025, investments are reported at fair valu e. The following table presents the fair value measurement of investments on a recurring basis and the levels within GASB 72 fair value hierarchy in which the fair value measurements fall at June 30, 2025:
Primary Government Total Level 1 Level 2 (1) Uncategorized Investment:
Negotiable Certificates of Deposit 7,668,483 $ - $ 7,668,483$ - $ Local Agency Investment Fund 37,444,065 - - 37,444,065 Los Angeles County Treasury Pool 25,810,862 - - 25,810,862 Money Market Mutual Funds 135,381 135,381 Supernational 412,548 - - 412,548 US Treasury Bond/Note 9,802,641 9,802,641 - - Federal Agency Mortgage-Backed Security 2,376,756 - 2,376,756 - Federal Agency Bond/Note 3,541,259 - 3,541,259 - Asset-Backed Security 3,214,131 - 3,214,131 - Corporate Note 7,085,943 - 7,085,943 - Investment with Fiscal Agent:
Money Market Mutual Funds 6,658,945 - - 6,658,945 Total Investments 104,151,014$ 9,802,641 $ 23,886,572 $ 70,461,801 $ (1) Institutional Bond Quotes - evaluations based on various market and industry inputs.
F. Disclosures Relating to 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 inv estment, 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-te rm 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 th e fair values of the City's investments to market interest rate fluctuations is as follows:
12 Months More than
Investment Type Total or less 1 to 2 Years 2 to 3 Years 3 years Investment:
Negotiable Certificates of Deposit 7,668,483 $ 7,668,483 $ - $ - $ - $ Local Agency Investment Fund 37,444,065 37,444,065 - - - Los Angeles County Treasury Pool 25,810,862 25,810,862 - - - Money Market Mutual Funds 135,381 135,381 - - - Supernational 412,548 - - - 412,548 US Treasury Bond/Note 9,802,641 2,203,051 3,626,496 2,012,281 1,960,813 Federal Agency Mortgage-Backed Security 2,376,756 - 507,847 589,774 1,279,135 Federal Agency Bond/Note 3,541,259 904,041 2,227,244 - 409,974 Asset-Backed Security 3,214,131 249,753 553,669 470,079 1,940,630 Corporate Note 7,085,943 751,253 3,572,303 1,318,913 1,443,474 Investment with Fiscal Agent:
Money Market Mutual Funds 6,658,945 6,658,945 - - - Total 104,151,014$ 81,825,834 $ 10,487,559 $ 4,391,047 $ 7,446,574 $ Remaining Maturity (in Months)
City of Monterey Park
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
64 Note 2 – Cash and Investments (Continued)
G. Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an i nvestment 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 requi red by (where applicable) the California Government Code, the City’s investment policy or debt agreements, and the actual rating by Standard & Poor’s as of year-end for each investment type.
Minimum
Investment Type Total Legal Rating AAA AA-/AA+ A/A-/A+ N/A Investment:
Negotiable Certificates of Deposit 7,668,483 $ N/A - $ - $ - $ 7,668,483$ Local Agency Investment Fund 37,444,065 N/A - - - 37,444,065 Los Angeles County Treasury Pool 25,810,862 N/A - - - 25,810,862 Money Market Mutual Funds 135,381 AAA 135,381 - - - Supernational 412,548 AA 412,548 - - - US Treasury Bond/Note 9,802,641 A - 9,802,641 - - Federal Agency Mortgage-Backed Security 2,376,756 AA 346,927 2,029,829 - - Federal Agency Bond/Note 3,541,259 N/A - 3,541,259 - - Asset-Backed Security 3,214,131 AA 1,589,995 - - 1,624,136 Corporate Note 7,085,943 A - 900,492 6,185,451 - Investment with Fiscal Agent:
Money Market Mutual Funds 6,658,945 AAA 6,658,945 - - - Total 104,151,014$ 9,143,796 $ 16,274,221 $ 6,185,451 $ 72,547,546 $ Actual Rating
H. Concentration of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government C ode. There are no investments in any one issuer (other than U.S. Treasury securities, mutual funds and external investment pools) that represent 5% or more of total City investments.
I. Custodial Credit Risk
The 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 depos its or will not be able to recover collateral securities that are in the possession of a third party. The custodial cred it risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, a governme nt will not be able to recover the value of investment or collateral securities that are in the possession of the thir d party. At June 30, 2025, none of the City’s deposits or investments were exposed to custodial credit risk.