LOOK AT THE GROUP PAPER AND WIRTE INTRODUCTION AND CONCLUSION.

Introduction　

1.     Environmental factors:

· Rosemead Community & the Governmental Resources

There are five Environmental factors affect the governmental services demand for those who live in the city of Rosemead.

To begin with the first factors, which is the most influential, community needs, and resources. Population, Median age, employment rate, and average income are important elements.  According to the data of suburban states, the median age of both genders is thirty- eight years old. The population is one of the key elements due to professional measure some of the community performance level based on the “employment base”.   The average age of the city has a direct relationship with the economic level.  Employment rate and business level have related relation. The improvement of the employment rate within the community could lead to the improvement of the community business activity. In addition, personal income and national unemployment rate are including in the measurement. The improvement of employment leads to increasing personal income, therefore, the community now have a better economic ability. The local government sector could provide better services to residents. The Chart below shows the change of Rosemead within ten years. People could clearly see that while the unemployment rate decrease, the personal income increase.  The city has spent most of the revenue on the public safety area.

Restriction of the revenue & Expense: pg.33

Secondly,  intergovernmental constraints, The city of Rosemead is primarily supported by tax and intergovernmental revenues from other function to cover the fees for the use of business-types activities, and Rosemead does not have business-types activities. In addition According to the Rosemead city’s policy, the restricted fund is going to apply first and apply the unrestricted fund if they need more resources to support the project.  By following the policy people need to reduce the amounts that have been assigned from the restricted revenue then figure out the other expenditures. People need to follow the policy to classific the amount and figure out which unrestricted balance accounts qualify for use. The city classific the fund balance into non-spendable, restricted, committed, assigned and unassigned. People need to identify the type of expenditure or expense before record it.

To continue with  Rosemead emergency programs. Residents could find out the information on the government website. Besides spending money and resource to set up those programs, they have purchased insurance pollution legal liability insurance plans and property insurance to avoid unexpecting emergency or natural disasters. The city also encourages their residents attended those program for better knowledge.

Political culture (Taxes, political process)

Furthermore, Rosemead’s revenue heavily relies on tax collection. Majority of the revenue comes from the property tax. Due to the optimistic performance of overall economic, sales tax increased $564 thousand. Other than sales taxes the  TOT increased$114 thousand due to the grand opening of the Hartford Hotel. Rosemead has changed the light to LED and receives $276 thousand of reimbursement that provides by CA Edison.

· External economic conditions

According to the NSCL, the national unemployment rate for the years 2018 are within the rage of 3.7% to 4.1%. However, Rosemead has a higher unemployment rate which is 4.3% due to the median age is thirty-eight years old in Rosemead. There is a large portion of people who live in Rosemead are over sixty or under eighteen, and it directly decrease the labor force.  It could be one of the factors that increase the unemployment rate in Rosemead.

· http://www.ncsl.org/research/labor-and-employment/national-employment-monthly-update.aspx

·       Population demographics: growth, density, composition

·       Median age

·       Percentage of household below the poverty level

· Capacity to provide services:

·       Personal income per capita (is this high or low?)

·       Property values

·       Employment (is the unemployment rate high or low? show and analyze the trend during a period, compare with the national unemployment rate

·       Level of business activity

2. Organizational factor is one of the three factors affect financial condition. Organizational factors act as the intermediate tool to influence how environmental factors affect the outcome of  financial factors. The successful government can invest their slack resources to improve the environmental practices and benefit the organizational performance. Mostly the environmental factors such as community needs and resources, intergovernmental constraints, disaster risk, political culture and external economic conditions will impact on the organizational performance. The ability of manages to make the decision can prevent the crisis in the operation, even in the face of adverse environmental factors.

In City of Rosemead’ s homepage, <Budget Message for 2018-2019 fiscal year> illustrate the focus of the budget is to “maintain our commitment to provide quality programs, events, and services, and to also maintain a quality infrastructure for our residents, businesses and visitors”. In addition, in its updated Strategic Plan Action Item 51. “Improve transparency and communication with the public regarding continuous monitoring and internal controls of City finances.”

In City of Rosemead’s strategic plan, there are three key organization goals.

· Ensure the City’s continued financial viability by actively pursuing quality economic development.

Due to the improving economy, the margin of surplus is 1%, and City of Rosemead will apply this to the reserve, and the Fund balance in the General Fund will aim at $18 million at 2018/2019 fiscal year. In addition, In the Comprehensive Annual Financial Report fiscal year ended June 30,2018, the management discussion and analysis section showed the total governmental activities net position which including investment in capital asset, restricted and unrestricted has an increase trend.

From City of Rosemead’s CAFR report, in 2012, the total amount is increase over 28 million compared to 2011. In the summer of 2016, the city council adopted an updated two-year strategic plan which server as “roadmap” to navigate the community goals to June 2018. From the above date, the expenditure went up from 68 million to 72 million and 74 million.

· Enhance public safety and quality of life.  

For the public safety service, the city was provided by the Los Angeles County Sheriff’s Department and the Los Angeles County Fire Department. As a result, the city’s organizational workforce will continue to operate with only 57 full-time and 143 part-time and seasonal positions.

Through the lean staffing level, the City “contract” certain services outside which have better management to enhance the public safety and quality of life, and this is also called “Rosemead Model”.

· Beautify residential neighborhoods and commercial corridors.

The City of Rosemead is utilizing Measure R and Measure M funds for capital improvement project. An aggressive capital improvement program (CIP) administered by the Public Works Department includes, funding for improvements to various roadways, sidewalks and traffic signal upgrades, parks and stormwater improvements. In addition, the City encourages and facilitates the citizen volunteerism to improve the appeal of the community .

3. Financial Factors:

Financial factors focus on six parts of the information on the statements, which are Revenue, Expenditures, Operating Position, Debt Structure, Unfunded Liabilities, and Condition of Capital Plants. Three main financial statements will be discussed in this report, they are Government-wide Financial Statements, Fund Financial Statements, and Government Funds. By comparing the date and ratios in these three statements, the current and future situation of Rosemead will obviously show how dies the city government is work.

· Government-wide Financial Statements.  

The government-wide financial statements are designed to provide readers with a broad overview of the City of Rosemead’s  finances, in a manner similar to private-sector business.

· Fund Financial Statements

A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives.

The City of Rosemead uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

All of the funds of the City of Rosemead can be divided into three categories:

1. governmental funds

2. internal service funds

3. fiduciary funds.

· Governmental Funds

Governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year.

Six indicators to identify the data on the statements:

Revenue, Expenditures, Operating Position, Debt Structure, Unfunded Liabilities, and Condition of Capital Plants

*Unfunded Liability Measure is only useful when…….

*According to 2018 CAFR City of Rosemead, the City of Rosemead include general government, public safety, public works, community development, and parks and recreation.  

· General Fund fund balance at the end of Fiscal Year 2017/18 increased $1.45 million.

· Based on the date and charts show above, the there financial factors give an outstanding on how City of Rosemead works in the 2017/18.

Conclusion: