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Council receives audited FY 2023–24 financial report; staff proposes $1.17 million for emergent priorities
Summary
City staff presented the audited annual comprehensive financial report for fiscal year 2023–24, noting a clean audit opinion and a recommended allocation of $1.17 million in unassigned general-fund balance toward equipment replacement, emergency repairs and a Section 115 pension trust.
City Finance Director Jing Guo presented the City of Pico Rivera’s audited Annual Comprehensive Financial Report for the fiscal year ending June 30, 2024, at the council meeting on Jan. 28. The independent auditor, CliftonLarsonAllen, issued an unqualified (clean) opinion, Guo said.
Guo told the council the general fund ended the year with operating revenues of about $60,360,000 and transfers in of about $1,680,000. Operating expenditures were approximately $50,130,000, with transfers out of $9,240,000; the year‑end net result was about $2,670,000. After required allocations to restricted and committed balances under government accounting standards and previously authorized appropriations, staff reported $1,170,000 remained available for allocation.
The city manager recommended allocating that unassigned amount to several emergent priorities. Guo and staff proposed setting aside $200,000 for replacement of aged kitchen equipment at park facilities, funding emergency repairs of the Washington Boulevard overpass at the Rio Hondo Channel (detailed costs covered in a separate agenda item), a health-and-wellness program for employees, and $621,000 to place into a Section 115 pension trust to hedge rising pension costs.
Guo highlighted revenue increases in fiscal 2023–24 compared with prior years: business-license revenue rose by roughly $1.2 million (to about $4,424,400 since 2019), sales tax grew by about $1,020,000, and property tax increased by about $594,000. Staff said the city has taken steps to diversify revenue sources to reduce reliance on sales and property taxes.
Councilmembers praised the finance team’s work and approved staff’s recommendations. Councilmember Dr. Sanchez moved to receive and file the report, approve transfers to address negative fund balances and allocate the remaining unassigned general-fund balance as recommended; the motion was seconded by Mayor Pro Tem Camacho and passed 5-0.
The council directed staff to proceed with the recommended transfers and to return as necessary with implementation details and grant-seeking plans. No additional appropriations beyond the recommended allocations were authorized at the meeting.
