<P> Tournament of Roses Parade floats are flower - covered parade floats, used in the annual New Year's Day Tournament of Roses Parade held in Pasadena, California . They evolved from flower - decorated horse carriages and are required to be covered with plant material . Three civic and floral industry leaders judge the floats and award prizes in 24 categories . </P> <P> Some communities and organizational sponsors, such as the City of Burbank, the City of Downey, City of South Pasadena, the City of Sierra Madre, the City of La Cañada Flintridge and the Cal Poly Universities, are referred to as "self - built floats" as they design, construct and decorate their floats solely on volunteer hours; but most are now built by professional float building companies . </P> <P> After the parade, floats are stripped to their chassis . Structural steel elements are reused where possible; organic materials and sculptural steel are recycled . </P>

Who pays for the floats in the rose parade