Agenda packet — Artesia City Council, January 26, 2026

PLEASE TAKE NOTICE, this special meeting of the City Council has been called by the Mayor pursuant to Government Code section 54956. Public comments may be submitted by email at [email protected] before 12:00 p.m. on the date of the meeting.

Special Meeting of the Artesia City Council
City Council Chambers
18747 Clarkdale Avenue
Artesia, CA 90701
(562) 865-6262
You may view this meeting live over the internet at
https://ca-artesia2.civicplus.com/241/City-Council-Meetings-Video Monday, January 26, 2026
6:00 p.m.

1. CALL TO ORDER

2. ROLL CALL

3. PUBLIC COMMENTS
Under California law, public comments at special meetings are limited to subjects on the agenda only. Public comments may also be submitted by email at [email protected] before 12:00 p.m. on the date of the meeting. Those wishing to speak are asked to add your information at the digital public kiosk located at the entrance of the Council Chamber.

3.A. Public Comments

4. PUBLIC HEARING

4.A. Introduction of an Ordinance Amending the Artesia Municipal Code Relating to the Mixed Use Overlay
— Recommendation: Waive Full Reading and Introduce by Title Only, Ordinance No. 26-980, Amending Sections of Title 48 (Mixed-Use Overlay Zone) of Chapter 2 (Zoning) of Title 9 (Planning and Zoning) of the Artesia Municipal Code and Finding the Ordinance Exempt From CEQA Pursuant To State CEQA Guidelines Section 15061(b)(3); And — Direct Staff to File Notice of Exemption.

5. DISCUSSION

5.A. Transmittal of Annual Comprehensive Financial Report for Fiscal Year 2024-25 — Recommended Action: Receive and file.

6. COUNCILMEMBER COMMENTS

6.A. Councilmember Comments

7. ADJOURNMENT
The City of Artesia complies with the Americans with Disabilities Act of 1990. If you require special assistance to attend or participate in this meeting, please call the City Clerk’s office at 562-865-6262 at least 72 hours prior to the meeting. Copies of Staff Reports are on file in the Office of the City Clerk and are available for inspection.

Date Posted: January 23, 2026

CITY COUNCIL AGENDA REPORT
MEETING DATE: January 26, 2026 ITEM NO: 4A.

TO: Mayor and Members of the City Council
SUBJECT: Introduction of an Ordinance Amending the Artesia Municipal Code Relating to the Mixed Use Overlay
FROM: Steven Valdez, Acting Planning Manager
Paul Bollier, Community Development Director
REVIEWED AND APPROVED BY:

Melissa Burke, Deputy City Manager
HongDao Nguyen, City Attorney
Abel Avalos, City Manager
RECOMMENDATION:

Planning Commission recommended approval to City Council, by motion:

1. Waive Full Reading and Introduce by Title Only, Ordinance No. 26-980, Amending Sections of Title 48 (Mixed-Use Overlay Zone) of Chapter 2 (Zoning) of Title 9 (Planning and Zoning) of the Artesia Municipal Code and Finding the Ordinance Exempt From CEQA Pursuant To State CEQA Guidelines Section 15061(b) (3); And

2. Direct Staff to File Notice of Exemption
BACKGROUND:

On May 20, 2025, the Planning Commission held a public hearing and adopted Resolution No. 2025-06P, recommending that the City Council adopt an ordinance establishing the Mixed-Use Overlay (MU-O) zone. On June 9, 2025, the City Council conducted a public hearing, considered the proposed MU-O zone, and approved Ordinance No. 25-970 establishing the MU-O zone (Article 48). The primary purpose of the MU-O is to implement the City of Artesia’s 6th Cycle Housing Element of the Artesia General Plan, to encourage and to incentivize new mixed-use infill residential, retail, and commercial development to facilitate affordable multifamily housing. The MUO’s function is to provide sufficient density allowance for the City to accommodate its share of the Regional Housing Needs Allocation (RHNA) as determined by the Southern California Association of Governments (SCAG), and as directed by California housing law (Ca. Gov. Code Section 65580 et seq.). Unlike standard zoning, an “overlay” zone is applied over an existing zone, allowing a property owner or developer to develop a property in accordance with the existing underlying zone or the Overlay zone. A copy of the June 9, 2025, City Council staff report, which provides an analysis of the MU-O Zone is attached.

While the City of Artesia was working closely with the California State Department of Housing and Community Development to update its Housing Element, a recent court case (New Commune DTLA LLC v. City of Redondo Beach (2025)) required the City to amend the MU-O Zone it had recently adopted. The court’s ruling invalidated Redondo Beach’s housing plan, finding its use of residential overlay zones to be insufficient to meet state housing law requirements because the underlying zoning still allowed non-housing development. Since Overlay zoning is an elective option, when the underlying zoning is non-residential (e.g., General Commercial) and allows nonhousing development, there is no assurance that the needed housing development will occur.

ANALYSIS:

The proposed amendments of the MU-O involve the following components:

1. Residential or Mixed-Use Development to be mandatory To demonstrate that jurisdictions have the proper zoning and density allowances to accommodate their share of RHNA, Housing Elements discuss and demonstrate their zoning capacity. If it’s shown that a jurisdiction's zoning capacity cannot accommodate its share of RHNA, Housing Elements must identify sites that need to be rezoned to ensure sufficient capacity (plus a 15 to 30% buffer) to accommodate RHNA. The draft Housing Element has identified hundreds of parcels that can accommodate RHNA through the MU-O Zone. To be consistent with the court ruling, the proposed amendment eliminates the elective overlay zone option for parcels within the MU-O if they are identified as an Opportunity Site/Parcel in the Housing Element. The opportunity/site parcels are shown on the attached map. Any new development on the Opportunity Sites/Parcels can only be a residential or Mixed-Use project.

2. Reduction of minimum density
The other key amendment to the MU-O concerns its minimum density standard. The adopted MU-O sets maximum density limits of 70 and 100 dwelling units per acre, depending on location. The adopted MU-O also set a minimum density of 70 dwelling units per acre. The State Department of Housing and Community Development (HCD) instructed the City to modify this standard, as it felt the minimum density was too high and could discourage housing projects. HCD agreed that a minimum density of 40 dwelling units per acre was acceptable. In addition to establishing a lower density limit, the amendment includes a provision allowing the City to consider densities lower than 40 dwelling units per acre, subject to legislative action and discretionary review. Instead of outright prohibiting projects that may be appropriate but fall just below the 40-unit threshold, HCD directed staff to modify the ordinance to allow lower density on a case-by-case basis, subject to legislative action and discretionary review.

3. Other changes
Other aspects of the amendment to the MU-O involve non-substantive changes that clarify various aspects of the MU-O, including definitions of specialized terms.

Exhibit A of the proposed Ordinance shows the proposed language (underlined) and the language to be removed in strike through.

ENVIRONMENTAL ANALYSIS:

Pursuant to the California Environmental Quality Act (" CEQA"), the Community Development Department has determined that the proposed amendments to the previously adopted Mixed-Use Overlay Zone is exempt from environmental review under the California Environmental Quality Act, (California Public Resources Code §§ 21000, et seq., ("CEQA") and the CEQA Guidelines (14 California Code of Regulations §§ 15000, et seq.) because the amendments consist of revisions to the minimum density standard and definitions of terms. The amendments do not change the existing allowable maximum densities and allowable uses, which were previously analyzed as part of an Environmental Impact Report for the Housing Element and the Mixed-Use Overlay Zone when it was first introduced and adopted. The amendment, therefore, is exempt from the requirements of CEQA under CEQA Guidelines Section 15061(b)(3), because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.

PUBLIC NOTICE:

Notice of the public hearing was published on January 16, 2026, in the Los Cerritos Community News.

PLANNING COMMISSION MEETING:

At the January 13, 2026, Special Meeting of the Planning Commission, after receiving a report from City Staff, conducting a public hearing, and deliberating, the Planning Commission adopted Resolution 2026-01P recommending the City Council amend sections of Title 48 (Mixed-Use Overlay Zone) of the Artesia Municipal Code and find the amendment to be exempt from the California Environmental Quality Act.

RECOMMENDED COUNCIL ACTION:

Planning Commission recommended approval to City Council, by motion:

2. Direct Staff to File Notice of Exemption
Attachments
Ordinance No. 26-980 to Amend the MU-O.pdf
Exhibit A to Ordinance No 26-980.pdf
Map - MUO Parcels - Building Height Limitations.pdf
PC Resolution No 2026-01P.pdf
City Council Staff Report 6-9-25.pdf
Public Hearing Notice - Ord 26-980.pdf
1 ORDINANCE NO. 26-980

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

ARTESIA, CALIFORNIA, AMENDING SECTIONS OF TITLE
48 (MIXED-USE OVERLAY ZONE) OF CHAPTER 2
(ZONING) OF TITLE 9 (PLANNING AND ZONING) OF THE

ARTESIA MUNICIPAL CODE AND FINDING THE

ORDINANCE EXEMPT FROM CEQA PURSUANT TO
STATE CEQA GUIDELINES SECTION 15061(b)(3)

THE CITY COUNCIL OF THE CITY OF ARTESIA DOES ORDAIN AS
FOLLOWS:

SECTION 1. Recitals.

A. The Artesia City Council, on July 14, 2025, adopted Ordinance No. 25-970 establishing a Mixed-Use Overlay (MU-O) Zone to accommodate new mixed-use infill residential, retail, and commercial development within the City, and to facilitate affordable multi-family housing for lower-income households.

B. The adoption of the MU-O Zoe fulfilled General Plan Land Use Policy Action LU 1.4.1, directs the City to amend the Zoning Code to implement mixeduse zoning districts that provide development standards for mixed-use development and is necessary to implement the City of Artesia’s 6th Cycle Housing Element to ensure sufficient density allowance for the city to accommodate its share of the Regional Housing Needs allocation (RHNA) as determined by the Southern California Association of Governments (SCAG).

C. Since the adoption of the MU-O Zone, a recent court case (New Commune DTLA LLC v. City of Redondo Beach (2025)) has necessitated the City to amend the MU-O Zone, as residential overlay zones are insufficient to meet state housing law requirements when underlying zoning allows non-housing development.

D. The proposed amendments, in response to the Court Case, mandate that new development on parcels identified as a shortfall site (Opportunity Sites/Parcels) in the Housing Element must be residential or mixed-use.

E. Government Code Section 65353 provides that an amendment to a zoning ordinance, which amendment modifies any regulations listed in Section 65850 theretofore imposed (e.g., the use of properties), must be adopted in the manner set forth in Government Code Sections 65854 to 65857, inclusive. Government Code Section 65854 provides that the Planning Commission must hold a noticed public hearing on a proposed amendment 2 to a zoning ordinance. Government Code Section 65855 provides that after the hearing, the Planning Commission must render its decision in the form of a written recommendation to the legislative body. The recommendation must include (1) the reasons for the recommendation, (2) the relationship of the proposed amendment to applicable general and specific plans.

F. On January 13, 2026, the Planning Commission conducted a duly noticed public hearing to consider the proposed amendments to Article 48 (MixedUse Overlay Zone (MU-O) of Title 9 (Planning and Zoning) of the Artesia Municipal Code, and following receipt of all public testimony, closed the public hearing on that date and adopted Resolution No. 2026-01P.

G. The City Council conducted a properly noticed public hearing on January 26, 2026, at which members of the public were afforded an opportunity to comment on this Ordinance, the recommendations of the Planning Commission and staff, and other public testimony.

H. All legal preconditions to the adoption of this Ordinance have occurred.

SECTION 2. Incorporation of Recitals. The City Council hereby finds that the foregoing recitals are true and correct and incorporated herein as substantive findings of this Ordinance.

SECTION 3. CEQA. In accordance with the California Environmental Quality Act (Public Resources Code, §§ 21000 et seq., “CEQA”), the proposed amendments to the previously adopted Mixed-Use Overlay Zone are exempt from environmental review under the California Environmental Quality Act ( California Public Resources Code §§ 21000, et seq., ("CEQA") and the CEQA Guidelines ( 14 California Code of Regulations §§ 15000, et seq.) because the amendments consist of revisions to the minimum density standard and definitions of terms. The amendments do not change the existing allowable maximum densities and allowable uses, which were previously analyzed as part of an Environmental Impact Report for the Housing Element and the Mixed-Use Overlay Zone when it was first introduced and adopted. The amendment, therefore, is exempt from the requirements of CEQA under CEQA Guidelines Section 15061( b)( 3), because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.

SECTION 4. Findings. Government Code section 65860 requires a city’s ordinance to be consistent with the general plan. Based on all evidence in the record, the City Council finds as follows:

A. The proposed amendments are consistent with the goals and policies of the City’s General Plan 2030. The proposed Zoning Code Amendment amends sections of Article 48 (Mixed-Use Overlay Zone (MU-O) of Title 9 (Planning and Zoning) of the Artesia Municipal Code. The proposed Zoning Code Amendment has been designed to be consistent with State Housing Law, the City’s 6th Cycle Housing Element, and the City’s General Plan 2030. The proposed Zoning Code 3 Amendment implements General Plan Community Development and Design Element, Land Use Sub-Element, Community Planning Principle LU 1, and Policy Vicinity Action LU 1.4.1. The proposed Zoning Code Amendment will not adversely affect or be detrimental to adjacent properties, as the standards of the Mixed Use Overlay Ordinance ensure the protection and enhancement of adjacent and future development. The proposed Zoning Code Amendment implements the following goals and policies contained in the City’s General Plan 2030 Community Policy Program:

1. Community Policy LU 1.1 and Policy Action LU 1.1.1, which encourage the identification of appropriate locations for residential and non-residential development to accommodate growth through the year 2030 by evaluating amendments to the General Plan Land Use Map to consider the effect that such amendments will have on the City’s ability to achieve its goals of a well planned community.

2. Community Policy LU 1.2 and Policy Action LU 1.2.1, which encourage a wide variety of commercial services in appropriate locations by analyzing the current inventory of developed and undeveloped commercial sites in the City in order to assess which are economically viable commercial developments that can be supported.

3. Community Policy LU 1.3 and Policy Action LU 1.3.1, which encourages active and inviting pedestrian-friendly street environments that include a variety of uses within commercial and mixed-use areas by enhancing access, safety and the streetscape experience for pedestrians, bicyclists, and transit riders; and focus improvements in areas with the highest need.

4. Community Policy LU 1.4 and Policy Action LU 1.4.1 and 1.4.2, which ensures mixed use developments are integrated with surrounding uses to become part of the neighborhood by utilizing cohesive architecture, lively streetscapes, interesting urban spaces, and attractive landscaping.

SECTION 5. Amendment. Sections of Article 48 (Mixed-Use Overlay Zone) of Chapter 2 (Zoning) of Title 9 (Planning and Zoning) is amended as shown in Exhibit A of this Ordinance.

SECTION 6. Effective Date. This Ordinance shall become effective 30 days after the City Council adopts this Ordinance.

SECTION 7. Severability. Should any provision of this Ordinance, or its application to any person or circumstance, be determined by a court of competent jurisdiction to be unlawful, unenforceable, or otherwise void, that determination shall have 4 no effect on any other provision of this Ordinance or the application of this Ordinance to any other person or circumstance, an, to that end, the provisions hereof are severable.

The City Council of the City of Artesia declares that it would have adopted all the provisions of this Ordinance that remain valid if any provisions of this ordinance are declared invalid.

SECTION 8. Adoption, Certification, and Publication. The City Clerk of the City of Artesia shall certify the passage and adoption of this Ordinance and shall cause the same, or a summary thereof, to be published and/or posted in the manner required by law.

SECTION 9. Record of Proceedings. The documents and materials associated with this ordinance that constitute the record of proceedings on which these findings are based are located at 18747 Clarkdale Ave, Artesia, CA 90701. The City Clerk is the custodian of the record of proceedings.

SECTION 10. The Community Development Director shall certify to the adoption of this Resolution and shall forward a copy of it to the City Clerk and to the City Council.

PASSED, APPROVED AND ADOPTED this 26th day of January 2026.

RENE TREVINO, MAYOR
ATTEST:
____

JENNIFER ALDERETE, CITY CLERK
APPROVED TO FORM:
____________________________________

BEST BEST & KRIEGER, CITY ATTORNEY
5 I, Jennifer Alderete, City Clerk of the City of Artesia, do hereby certify that the foregoing Ordinance was adopted at the City Council Meeting held on the 26th day of January 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

JENNIFER ALDERETE, CITY CLERK
6 EXHIBIT “A”
AMENDMENTS TO ARTICLE 48 (MIXED-USE OVERLAY
ZONE) OF TITLE 9 (PLANNING AND ZONING) OF THE

ARTESIA MUNICIPAL CODE
Exhibit A
Article 48
Mixed-Use Overlay Zone (MU-O)
Key:

Normal Text = Existing unmodified language in the Code
Strikethrough Text = Existing language proposed to be removed from the Code Underlined Text = Proposed language to be added to the Code § 9-2.4801. Intent and Purpose (MU-O).
(a) The Mixed-Use Overlay (MU-O) Zone is enacted to implement, in part, the City of Artesia 6th Cycle Housing Element of the Artesia General Plan, to encourage and incentivize new mixed-use infill residential, retail, and commercial development within the City, and to facilitate affordable multi-family housing for very-low and low-income classifications. This article further establishes a Community Benefit Program as set forth in Section 9-2.4809. Except as otherwise provided in Section 9-2.4802(b), tThis article is not intended to alter development rights or standards applicable to the underlying zoning.
(b) Specific goals of this article include:
(1) Accomplishing the housing needs of the City per the current Regional Housing Needs Assessment (RHNA) as issued by the Gateway Cities Council of Governments and the State of California;
(2) Affirmatively furthering fair housing for all income levels; (3) Incentivizing affordable housing for lower-income and special-needs households;
(4) Incentivizing socially and economically inclusive housing; (5) Increasing the opportunities for a variety of housing types; (6) Facilitating walkable development with multi-modal transportation options; (7) Creating new patterns for socially-and economically-inclusive housing that reduce, segregated living patterns and work towards truly integrated and balanced living patterns;
(8) Facilitating increased employment and multi-modal access to jobs in highresource areas. § 9-2.4802. Applicability.
(a) The MU-O Zone may be applied to all properties identified on Map A, which follows the text of this article. If a property is not identified on Map A, the MU-O Zone shall not be applied to that property unless a map amendment and overlay zone change are approved by the Artesia City Council.
(b) At an applicant's election, properties within the MU-O Zone may be developed either in accordance with: (1) this article; or (2) the standards of the underlying zoning district or Specific Plan., except development proposals on any of the Opportunity Sites/Parcels within any of the nine Opportunity Areas listed in the Housing Element must be developed in accordance with the MU-O Zone and minimum density of 40 du/ac. Projects proposing less than 40 du/ac on these parcels require a legislative approval subject to discretionary review. (c) Once an applicant elects to develop a property under the MU-O Zone or the underlying zoning district or Specific Plan, that choice governs all subsequent development and approvals.
§ 9-2.4803. Definitions.
(a) Affordable housing. "Affordable housing" for the purposes of this article means housing available and deed-restricted for low-income and very-low-income households.
(b) The term "low-income families households" has the same meaning as provided in Section 50079.5 of the California Health and Safety Code. “Lower income households” include very low income and extremely low income households. defined in Section 3(b)(2)(A) of the Housing Act of 1937 as amended (42 U.S.C.1437a(b)(2)(A)). (c) The term "very-low-income families households” has the same meaning as provided in Section 50105 of the California Health and Safety Code. defined in Section 3(b)(2)(B) of the Housing Act of 1937 as amended (42 U.S.C.1437a(b)(2)(B)). (d) The term "extremely low-income families households " has the same meaning as provided in Section 50106 of the California Health and Safety Code. defined in Section 3(b)(2)(C) of the Housing Act of 1937 as amended (42 U.S.C.1437a(b)(2)(C)). (e) The term "Moderate income households" has the same meaning as provided in Section 50093 of the California Health and Safety Code. means income greater than the area median income (AMI) but not exceeding 120% of the AMI, as established by the California Department of Housing and Community Development, pursuant to California Health & Safety Code Section 50093.
(f) The term "lower-income households" includes households of very-low, low- and moderate- income families.
(f)(g) Mixed-Use. "Mixed-use" means for purposes of this article a combination of commercial- retail, institutional, or office uses in the same structure as a multiplefamily residential development. § 9-2.4804. Principal Uses Permitted.
(a) The following uses are allowed as principally permitted uses where the MU-O Zone applies, if the project or proposed use complies with all development standards of Section 9-2.4807:
(1) Multiple-Family Residential Development. Except as provided in Section 9-2.4807(b) below, multiple-family residential development that is limited to residential uses and is not "mixed use" pursuant to Section 9-2.4803(f)(g) is permitted where the underlying zone is residential, or the underlying Specific Plan permits stand-alone residential uses. Multiple-family development may consist of rental apartment units or condominium units; (2) Mixed-Use Development. Commercial or office uses may occupy the first story in a multi- story structure but shall not exceed 50% of the total usable floor area of the structure;
(3) 100% affordable-housing development;
(4) Supportive housing;
(5) Employee housing;
(6) Transitional housing as defined in Government Code Section 65582(q); (7) Single-room occupancy unit where the underlying zone is commercial or industrial, or if not commercial or industrial, the site abuts the underlying commercial or industrial zone within the Mixed-Use Overlay boundary; (8) Emergency shelters as defined in Section 9-2.406, "E" Words and Phrases, of Title 9 of the Artesia Municipal Code where the underlying zone is commercial or industrial, or if not commercial or industrial, the site abuts the underlying commercial or industrial zone within the Mixed-Use Overlay boundary; (9) Low-barrier navigation centers, in accordance with Government Code Sections 65660 et seq.;
(10) Restaurants, where the underlying zone is commercial or in conjunction with Mixed Use development and that do not both; (i) serve alcohol; and (ii) provide outdoor dining except on any of the Opportunity Sites/Parcels within the nine Opportunity Areas identified in the Housing Element, new construction must be part of a mixed-use development subject to the mixed-use development standards;
(11) All service and professional uses that are allowed as principal uses under Section 9- 2.3002 where the underlying zone is commercial or in conjunction with Mixed Use development or an approved Specific Plan, except on any of the Opportunity Sites/Parcels within the nine Opportunity Areas identified in the Housing Element, net new commercial construction must be part of a mixed-use development subject to the mixed-use development standards. § 9-2.4805. Conditionally Permitted Uses.
(a) The following uses are allowed as Conditionally Permitted uses in the MU-O Zone, if the project or proposed use complies with all development standards of Section 9-2.4807 where the underlying zone is commercial or if not commercial, the site abuts the underlying commercial zone:
(1) Hotels and motels;
(2) Bars and cocktail lounges;
(3) Restaurants that serve alcohol and that provide outdoor dining. § 9-2.4806. Temporary Uses.

Under the MU-O Zone, the property may be used for temporary uses as set forth in Section 9-2.4002 of Article 40 of this chapter subject to approval of a temporary use permit in accordance with Article 40 of this chapter.
§ 9-2.4807. Development Requirements and Standards.

Projects seeking approval under this article shall be subject to the following development requirements and standards:
(a) All Projects:
(1) Property development within the MU-O Zone is subject to the Community Benefit Program and in-lieu fees (Section 9-2.4809) whether it is developed under MU-O standards or according to the underlying zoning. (2) At least 10% of the residential units, or one unit, whichever is greater, in each project developed under this article shall be reserved for households earning no more than 80% of Los Angeles County area median income adjusted for family size appropriate to the unit. The units shall be rented or sold at an affordable housing cost, as defined in Sections 50052.5 and 50053 of the California Health and Safety Code. The units shall be rented or sold in accordance with California Government Code Section 65915. (3) A 100 percent residential development will be permitted as a use by-right if the development satisfies all of the following: (1) When a the property (i) is identified in the current Housing Element as an Opportunity Site/Parcel that was rezoned to accommodate RHNA for lower income households subject to a shortfall site (subject to Government Code Sections 65583.2(h) and (i)); (ii) (2) the project includes at least 20 percent affordable units in accordance with subsection (a)(4) below; has a site capacity for 16 dwelling units or more at the minimum density of 70 dwelling units per acre, 100% residential development is permitted by-right consistent with Government Code Sections 65583.2(h) and (3) the site (inclusive of lot consolidations) has a capacity for 16 dwelling units. To qualify for by-right review and approval, the (i). Residential projects must shall be constructed to a minimum density of 4070 dwelling units per acre or the current MU-O minimum density as set forth in Section 9-2.4807, whichever is greater. For purposes of this subsection (a)(3), “use by right” has the same meaning as provided in Government Code section 65583.2(i). (4) Affordability. To qualify for by-right review approval under subsection (a)(3) above, Aat least 20% of the project’s total dwelling units shortfall sites must be designated as affordable to lower-income households as in Section 9-

2.4803.
(5) Mixed-use developments that combine residential and commercial uses are permitted on Opportunity Sites/Parcels that were rezoned to accommodate lower income RHNA HE shortfall sites as follows:
(i) Residential uses must occupy a minimum of 50% of the total floor area of the project.
(ii) A minimum of 20 30% of the total dwelling units shall be reserved for lower- income households on Opportunity Sites/Parcels HE shortfall sites.
(b) Mixed-Use Developments:
(1) Commercial uses shall occupy at least 50% of the ground-floor area of mixed-use developments; however, if a project comprises 100% low or very low income units or a combination thereof then the ground-floor commercial requirement is waived.

The ground-floor commercial requirement is also waived on properties that are required to be re-zoned to conform to Housing Element requirements. (2) Where low to very-low-income units are incorporated in a proposed mixed-use development, the minimum required commercial floor area may be decreased by 10%.
(c) Multi-Family Developments:
(1) The Condominium Development Standards contained in Article 36 of Chapter 2 of Title 9 of the Artesia Municipal Code do not apply to multi-family developments developed under the MU-O Zone. This provision does not prohibit condominium development in the MU-O Zone.
(2) Density. All residential uses within the MU-O Zone shall be developed at a minimum residential density of 40 70 dwelling units per acre. Housing developments with less than 40 dwelling units per acre require legislative approval subject to discretionary review. The maximum residential density shall be as follows:
(i) Where the maximum allowable building height is five stories or more, including applicable Artesia Density Bonus stories, the maximum density is 100 dwelling units per acre.
(ii) Where maximum allowable building height is four stories or fewer, including applicable Artesia Density Bonus stories, the maximum density is 70 dwelling units per acre.
(iii) Where the underlying zoning or Specific Plan permits a residential density greater than the maximum allowed under subsections (i) and (ii), the greater density applies.
(iv) California Density Bonus provisions for additional increased density with varying proportions of affordable units (Government Code Sections 65915 et seq.) may be applied to any proposed multi-family development. (3) Artesia Density Bonus. The Artesia Density Bonus increases the maximum number of stories for multiple-family or mixed-use projects that incorporate a minimum percentage of affordable units. Projects are eligible for one additional story such that where the maximum building height is five stories, the Artesia Density Bonus permits six stories; where the maximum building height is four stories, the Artesia Density Bonus permits five stories; and where the maximum building height isthree stories, the Artesia DensityBonus permits four stories. Projects are eligible for the Artesia Density Bonus if they incorporate low to moderate-income units as follows:
(i) 35% or greater of low to very-low income housing.
(ii) 45% or greater of moderate-income housing.
(iii) Projects proposing 100% market-rate units are not eligible for the Artesia Density Bonus.

Note: See Map A for height and density designations.
(4). Private outdoor living space. Each unit shall have private outdoor living space of at least 100 square feet. The outdoor living space may include rooftop decks, balconies, or patios and shall have a minimum dimension of 5 feet in every direction.
(4) Communal Open Space and Recreation Facilities. A minimum of 50 square feet per dwelling unit, with a total minimum area of 600 square feet, of communal open space and recreation facilities, shall be provided for exclusive use by multi-family or mixed-use development residents and their guests. This requirement may be satisfied by various facilities in separate locations within the residential or mixed-use building (for example, gym, garden, rooftop deck, plaza, forecourt); however, no single facility may be less than 500 square feet in area with minimum dimensions of 10 feet in every direction. Non-enclosed communal open space may be provided in setback areas.
(5) Distribution/Location of Low-Income Units. Units designated as affordable shall be reasonably dispersed throughout the development, shall contain on average the same number of bedrooms as the market-rate units, and shall be comparable with the market-rate units in terms of appearance, finish quality, and materials.
(d) Yards. Except as otherwise provided in Article 9 of this chapter, the following yard requirements apply:
(1) Front Yards. Front yards are not required.
(2) Side Yards.
(i) Each lot or parcel of land that has a side lot line adjoining property in a residential or agriculture zone shall have a side yard not less than 10 feet in width on the side adjoining such residential or agricultural lot or parcel of land.
(ii) Where a side lot line abuts a property not within the MU-O Zone that is developed with a residential use, the minimum setback for the first and second stories is 10 feet, and the minimum setback for the third and fourth stories is 15 feet. Additional stories above the fourth story that are granted pursuant to the City of Artesia Density Bonus Ordinance as affordable housing development concessions shall be subject to a minimum setback of 20 feet. Buildings may be stepped to achieve these setback requirements, or the developer may choose to set back the entire building to meet the largest setback requirement.
(iii) Where the side lot line of any lot or parcel of land adjoins property that is not within the MU-O Zone or that is not zoned for residential use, the side yard shall conform to the underlying zone of that lot or parcel. (3) Rear Yards.
(i) Each lot or parcel of land which has a rear lot line adjoining property in a residential or agricultural zone shall have a rear yard not less than 10 feet in depth.
(ii) Where a rear setback abuts a residentially-zoned property not within the MU-O Zone, the minimum setback for the first and second stories is 10 feet, and the minimum setback for the third and fourth stories is 15 feet. (e) Privacy. Where a property abuts a residentially-zoned property that is not within the MU-O Zone:
(1) Private open spaces and communal open spaces that face residentially-zoned property shall include screening that is at least six feet above floor level.

Screening is not to be considered part of the building for the purposes of measuring building height.
(2) All parts of windows on stories above ground level that face residentiallyzoned property shall be at least six feet above the floor level in that story or shall be constructed with non-transparent material to obscure views into adjacent private yards (e.g., frosted or textured glass, or other solution to the satisfaction of the Community Development Director).
(f) Height Limits. Height limits are established by the number of stories per parcel as shown on Map A, except that additional stories added pursuant to Section 9-2.4807(c)(3), Artesia Density Bonus, are allowed.
(g) Design Standards.
(1) Facade Articulation. The facade of any building shall not have a single, unarticulated plane of more than 30 linear feet. Articulation of the facade shall be of a depth not less than two feet.
(2) Building Entrance. A building entrance or entrances shall be set back or projected forward from the main facade of the building by not less than six feet. (3) Additional Design Criteria. Except where detailed in Subsections (g)(1) and (g)(2), above, development shall meet the objective design criteria applicable to the underlying zoning or Specific Plan except where the underlying zoning is a residential zone. If the underlying zoning is a residential zone, then the design standards applicable to the Commercial General (C-G) Zone apply. (4) Shade and Shadow Analysis. New development projects shall not cast shadows with durations of more than three hours during the spring and fall equinoxes, or more than four hours during the winter and summer solstices. Evidence of shadow duration may be demonstrated by a project-specific shade and shadow computer analysis, a structural model, or other means acceptable to the Community Development Director or designee. Reducing a structure's shadow potential may require reducing some or all of a structure's height, regardless of the maximum height permitted in the MU-O Zone area.
(h) Off-Street Parking. Each lot or parcel of land shall comply with the following parking location requirements:
(1) Location. The required parking facilities set forth in Subsection 3(i)(c) of this section shall be located entirely behind or within the building. Vehicle parking may not be located along any street frontage of the property. For the purposes of Subsection 3(i)(a) an alley is not a street.
(2) Additional requirements for above-grade parking:
(i) Parking garage facades shall have decorative elements as follows:
(ii) Where a property has a depth of 120 feet or longer as measured from the property street frontage, the parking garage portion of the development shall incorporate on the building's street frontage developable space to accommodate retail, office, or other permitted uses along the street frontage and to screen the parking garage from the street. (iii) Where a property has a depth of less than 120 feet as measured from the property street frontage, the parking garage facade shall incorporate screening elements, window displays, vertical landscaping, or a combination of one or more of these.
(3) Parking garages shall have a street-accessible pedestrian entry/exit door.

Access from the street shall be controlled by an electronic locking mechanism to prevent unauthorized entry.
(i) Parking Spaces Required.
(1) The following parking requirements apply:
(i) Two standard spaces per each residential unit with two or more bedrooms. (ii) One standard space per each residential unit with one or fewer bedrooms (e.g., studio units);
(iii) One quarter (1/4) space per each multi-family unit for guest parking.

Multi-family guest parking shall be identified as such and kept separate from retail and commercial parking areas;
(iv) For all commercial uses, including restaurants, retail, and service uses, parking requirements are one space per 250 square feet of floor area. (v) For all developments that include five or more affordable units, parking space requirements shall be reduced by 10%, excluding ADA parking space requirements. The number of parking spaces for such projects may be further reduced upon application to the Community Development Director.
(vi) For residential uses exclusively accommodating senior housing, supportive or transitional housing, SROs, or other housing for individuals with physical or developmental disabilities, parking-space requirements shall be reduced by 20%, excluding ADA parking space requirements.

The number of parking spaces for these uses may be further reduced upon application to the Community Development Director.
(vii) Hotels are subject to the parking requirements in Article 11. (j) Bicycle Parking.
(1) For residential uses with ten or more units, one bicycle space for every four residential units or four total spaces, whichever is more, shall be provided in a secured location for exclusive use by residents and their guests. (2) For commercial uses, one bicycle space per 1,000 square feet of retail or service use floor space shall be provided in a location accessible to the public. (k) Signs. All signage shall comply with Title 9, Ch. 2 of Article 12 of the Artesia Municipal Code.
(l) Landscaping. Except as modified by this article, landscaping shall comply with Article 15 of this chapter.
(1) Landscaping other than turfgrass (lawns) may be provided in any manner, including, but not limited to, ornamental planting at grade, including trees, shrubs, annual plants, decorative groundcover, etc., and ornamental planting in raised planters. Turfgrass shall not be used as a decorative groundcover or other non-functional application. Turfgrass may be used in common areas, but shall be subject to City or State water-conservation regulations. Landscaping may be included in rear and side setback areas.
(2) Article 15, Section 9-2.1502, Required Area, does not apply to properties developed according to the Mixed-Use Overlay.
(m) Trash Containers. Trash enclosures shall comply with the trash enclosure standards applicable to the underlying zone or Specific Plan.
(n) Air Conditioning Units. Exterior air conditioning unit locations shall comply with the Air Conditioning Unit standards applicable to the underlying zone or Specific Plan. If no standards are established by the underlying zone or Specific Plan, exterior air conditioning units shall be screened according to the development standards set forth in Artesia Municipal Code Title 9, Planning and Zoning, Article 29 Multiple Residential (M-R), Section 9-2.2904(k).
(o) Lighting. All outdoor parking lot, security, and ornamental landscape lighting, except for ornamental landscape uplights designed to illuminate tree canopies, shall be shielded and directed downwards. Lamps shall be shielded such that their illumination does not exceed 0.5 foot-candle at any property boundary. (p) Emissions Analysis. Prior to issuance of building permits, project applicants shall estimate development projects' construction and operational emissions using the CalEEMod® Emissions Estimator or equivalent modeling tool, and shall incorporate emissions-reduction measures so that estimated construction and operational emissions do not exceed applicable regional and localized thresholds. (q) Energy Efficiency. Prior to issuance of building permits, project applicants shall demonstrate in their Title 24 energy calculations that Title 24 minimum requirements will be exceeded by 10%. Projects incorporating 100% affordable residential units are exempt from this requirement.
(r) Noise and Vibration Analysis. Prior to issuance of building permits for any proposed construction activity requiring a building permit where pile drivers, pavement breakers, jack-hammers, compaction equipment such as vibratory rollers, or other equipment typically causing ground-borne vibration will be used, applicants shall evaluate the potential of construction equipment to cause vibration that would adversely affect people or structures. If the anticipated vibration would exceed 0.5 PPV, then vibration-dampening measures are required to reduce vibration to less than 0.5 PPV.
§ 9-2.4808. Design Review.
(a) Applicability. Projects meeting the following criteria are subject to discretionary Design Review approval in accordance with Article 20 of this chapter:
(1) Any proposed development in the MU-O Zone without a housing component; (2) Any proposed residential or mixed-use (commercial-residential) project that does not contain very-low-income, low income, or moderate-income units; (3) All other projects except as enumerated in Section 9-2.4808(b) below. (4) Residential or mixed-use projects that achieve a density less than 40 dwelling units per acre, require legislative approval subject to discretionary review and No Net Loss Law as outlined in Government Code section 65863. (b) Exemptions. The following development project categories are exempt from discretionary Design Review:
(1) Any proposed residential development in the MU-O Zone that is subject to ministerial review;
(2) Residential development incorporating four or fewer market-rate residential units;
(3) Multi-Family residential projects of five or more residential units that include affordable housing;
(4) Mixed-use development that are described by Government Code Section 65589.5(h)(2)(B) and that includes affordable housing;
(5) Residential projects comprising 100% low or very low income units or a combination thereof;
(6) Single room occupancy residential facilities;
(7) Emergency shelters;
(8) Employee housing;
(9) Transitional housing;
City of Artesia, CA
§ 9-2.4808 § 9-2.4809
(10) Supportive housing;
(11) Residential projects designed to accommodate seniors (65+) or people with disabilities.
§ 9-2.4809. Community Benefit Program.
(a) Community Benefit Program. The Community Benefit Program is intended to balance development goals with community housing needs to take meaningful action to affirmatively further fair housing. The program features two Community Benefits, the Artesia Density Bonus, and the Affordable Housing In Lieu fee program. The Artesia Density Bonus permits increased residential height limits in exchange for affordable housing, and the "in-lieu" fee program permits market-rate development in exchange for contributing to developing affordable housing elsewhere in the City. All sites within the MU-O boundary are subject to the City's Community Benefit Program for Affordable Housing, as follows:
(1) Except as set forth below, projects that are entirely non-residential are exempt from providing affordable housing pursuant to this section. (2) Applicability. The provisions of this section shall be applicable to all development projects within the MU-O Zone.
(b) Artesia Density Bonus. The Artesia Density Bonus as set forth in Section 9-2.4807(c)(3) may be utilized by all projects within the MU-O zone and is intended to facilitate the development of affordable housing in the City. (c) Affordable Housing In Lieu Fee. The Affordable Housing In-Lieu fee shall be applied to development projects within the MU-O as set forth below. (1) Application:
(i) Projects proposing a minimum of 15% very-low-income units, 15% lowincome units, or 25% moderate-income units, or combination thereof, (calculated from base density) shall be exempt from the in-lieu fee; (ii) Projects proposing less than the affordability percentages in Section 9-

2.4808(c)(1)(i) shall be subject to the corresponding proportional amount of the in-lieu fee as follows:
(A) Projects proposing less than 5% of very-low or low-income units, or less than 10% of moderate income units, shall be subject to 75% of the fee;
(B) Projects proposing between 5% and 10% of very-low or low-income units, or between 10% and 20% of moderate-income units, shall be subject to 50% of the fee;
(C) Projects proposing between 10% and 15% of very-low-income or low-income units, or between 20% and 25% of moderateincome units, shall be subject to 25% of the fee. (iii) Projects not proposing any affordable housing units shall be subject to 100% of the in-lieu fee.
(2) Amount of Fee. The amount of the in-lieu fee shall be set by resolution of the City Council.
(3) Timing of Payment. The fee required by this section shall be paid before issuance of a certificate of occupancy or final inspection. (4) Basis for Fee. The fee shall be calculated according to the results of a Cityinitiated development fee study, and shall be increased periodically according to the Consumer Price Index or similar time-based escalator. There is a reasonable relationship to requiring properties that could otherwise include affordable residential units to offset the lack of affordable units in each project with the fee because the fee serves the important public purpose of facilitating affordable housing.
(5) Affordable Housing Trust Fund. Fees paid to fulfill the requirements of this chapter shall be placed in the City's Affordable Housing Trust Fund. The funds shall be used exclusively for projects that have a minimum of 60% of the dwelling units affordable to low-and moderate-income households, with at least 30% of the units available to low-income households. Only tax-exempt nonprofit corporations seeking to create or to preserve the housing in the city shall be eligible to apply to the Council for funding. The funds may, at the discretion of the Council, be used for pre-development costs, land or air rights acquisition, administrative costs, gap financing, or to lower the interest rate of construction loans or permanent financing. In a project that includes marketrate units, trust fund monies shall only be provided to assist in the acquisition or construction of those units affordable to lower- and moderate-income households.
(d) Affordable Housing Regulatory Agreement. A legally binding agreement, in a form approved by the City Attorney, shall be executed and recorded against the property to ensure that the property complies with all of the requirements of state law and of this article, including, but not limited to, the requirement that affordable units be deed-restricted in accordance with state law requirements. If affordable units are not subject to a durational requirement imposed by state law, then such affordable units must be deed restricted for a period of not less than 35 years. The property owner shall record the regulatory agreement prior to recording any final map for the property, or prior to the issuance of any building permit for the project, whichever comes first. The regulatory agreement shall bind all future owners and successors in interests of the project.

Figure 1 City of Artesia Mixed -Use Overlay, Map A
South St
State Route 91
Gr di el y
R
d
178th St
Artesia Blvd
P
oi n
e
er B
vl d
N
o
wr a
kl B
vl d
187th St
183rd St
195th St
E 166th St
R
oseto
n
Ave
176th St
LACMTA (former

PE RR) ROW
Source: Esri, Vantor, Earthstar Geographics, and the GIS User Community 0 2
/50 500 750 1,000
Feet
Mixed-Use Overlay Parcels
Zone 1:
5 stories max.
40 du/acre min.
100 du/acre max.

Zone 2:
4 stories max.
40 du/acre min.
100 du/acre max.

Zone 3:
3 stories max.
40 du/acre min.
70 du/acre max.

Housing Element Opportunity Sites
Artesia City Boundary
1 CITY OF ARTESIA

PLANNING COMMISSION
RESOLUTION NO. 2026-01P

A RESOLUTION OF THE PLANNING COMMISSION OF

THE CITY OF ARTESIA RECOMMENDING THAT THE CITY
COUNCIL AMEND SECTIONS OF TITLE 48 (MIXED-USE

OVERLAY ZONE) OF THE ARTESIA MUNICIPAL CODE

AND FIND THE AMENDMENT TO BE EXEMPT FROM THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT
_____________________________________________________

THE PLANNING COMMISSION OF THE CITY OF ARTESIA DOES HEREBY FIND, ORDER AND RESOLVE AS FOLLOWS:

SECTION 1. The Artesia City Council, on July 14, 2025, adopted Ordinance No. 25-970 establishing a Mixed-Use Overlay (MU-O) Zone to accommodate new mixed-use infill residential, retail, and commercial development within the City, and to facilitate affordable multi-family housing for lower-income households.

SECTION 2. The adoption of the MU-O Zoe fulfilled General Plan Land Use Policy Action LU 1.4.1, directs the City to amend the Zoning Code to implement mixed-use zoning districts that provide development standards for mixed-use development and is necessary to implement the City of Artesia’s 6th Cycle Housing Element to ensure sufficient density allowance for the city to accommodate its share of the Regional Housing Needs allocation (RHNA) as determined by the Southern California Association of Governments (SCAG).

SECTION 3. Since the adoption of the MU-O Zone, a recent court case (New Commune DTLA LLC v. City of Redondo Beach (2025)) has necessitated the City to amend the MU-O Zone, as residential overlay zones are insufficient to meet state housing law requirements when underlying zoning allows non-housing development.

SECTION 4. The proposed amendments, in response to the Court Case, mandate that new development on parcels identified as a shortfall site (Opportunity Sites/Parcels) in the Housing Element must be residential or mixed-use.

SECTION 5. Government Code Section 65353 provides that an amendment to a zoning ordinance, which amendment modifies any regulations listed in Section 65850 theretofore imposed (e.g., the use of properties), must be adopted in the manner set forth in Government Code Sections 65854 to 65857, inclusive. Government Code Section 65854 provides that the Planning Commission must hold a noticed public hearing on a proposed amendment to a zoning ordinance. Government Code Section 65855 provides that after the hearing, the Planning Commission must render its decision in the form of a written recommendation to the legislative body. The recommendation must include (1) 2 the reasons for the recommendation, (2) the relationship of the proposed amendment to applicable general and specific plans.

SECTION 6. On January 13, 2026, the Planning Commission conducted a duly noticed public hearing to consider the proposed amendments to Article 48 (Mixed-Use Overlay Zone (MU-O) of Title 9 (Planning and Zoning) of the Artesia Municipal Code and closed the public hearing.

SECTION 7. In accordance with the California Environmental Quality Act (Public Resources Code, §§ 21000 et seq., “CEQA”), the proposed amendments to the previously adopted Mixed-Use Overlay Zone are exempt from environmental review under the California Environmental Quality Act ( California Public Resources Code §§ 21000, et seq., ("CEQA") and the CEQA Guidelines ( 14 California Code of Regulations §§ 15000, et seq.) because the amendments consist of revisions to the minimum density standard and definitions of terms. The amendments do not change the existing allowable maximum densities and allowable uses, which were previously analyzed as part of an Environmental Impact Report for the Housing Element and the Mixed-Use Overlay Zone when it was first introduced and adopted. The Planning Commission hereby recommends that the City Council find that the amendment, therefore, is exempt from the requirements of CEQA under CEQA Guidelines Section 15061( b)( 3), because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.

SECTION 8. The Planning Commission hereby recommends that the City Council find that the proposed amendments are consistent with the goals and policies of the City’s General Plan 2030. The proposed Zoning Code Amendment amends sections of Article 48 (Mixed-Use Overlay Zone (MU-O) of Title 9 (Planning and Zoning) of the Artesia Municipal Code. The proposed Zoning Code Amendment has been designed to be consistent with State Housing Law, the City’s 6th Cycle Housing Element, and the City’s General Plan 2030. The proposed Zoning Code Amendment implements General Plan Community Development and Design Element, Land Use Sub-Element, Community Planning Principle LU 1, and Policy Vicinity Action LU 1.4.1. The proposed Zoning Code Amendment will not adversely affect or be detrimental to adjacent properties, as the standards of the Mixed Use Overlay Ordinance ensure the protection and enhancement of adjacent and future development. The proposed Zoning Code Amendment implements the following goals and policies contained in the City’s General Plan 2030 Community Policy Program:

A. Community Policy LU 1.1 and Policy Action LU 1.1.1, which encourage the identification of appropriate locations for residential and non-residential development to accommodate growth through the year 2030 by evaluating amendments to the General Plan Land Use Map to consider the effect that such amendments will have on the City’s ability to achieve its goals of a well planned community.

B. Community Policy LU 1.2 and Policy Action LU 1.2.1, which encourage a wide variety of commercial services in appropriate locations by analyzing the current 3 inventory of developed and undeveloped commercial sites in the City in order to assess which are economically viable commercial developments that can be supported
C. Community Policy LU 1.3 and Policy Action LU 1.3.1, which encourages active and inviting pedestrian-friendly street environments that include a variety of uses within commercial and mixed-use areas by enhancing access, safety and the streetscape experience for pedestrians, bicyclists, and transit riders; and focus improvements in areas with the highest need.

D. Community Policy LU 1.4 and Policy Action LU 1.4.1 and 1.4.2, which ensures mixed use developments are integrated with surrounding uses to become part of the neighborhood by utilizing cohesive architecture, lively streetscapes, interesting urban spaces, and attractive landscaping.

SECTION 9. Based on the findings contained in Sections 1 through 8 above, and all other evidence in the record, the Planning Commission hereby recommends that the City Council adopt Ordinance No. 26-980 (attached hereto as Exhibit “A” and incorporated herein by reference).

SECTION 10. The Community Development Director shall certify to the adoption of this Resolution and shall forward a copy of it to the City Clerk and to the City Council.

PASSED, APPROVED AND ADOPTED this 13
th day of January 2026.

Victor Manalo, Chairperson
ATTEST:
___________
Paul Bollier, Community Development Director
4 ROLL CALL VOTE:

AYES: COMMISSIONERS:

NOES: COMMISSIONERS:

ABSENT: COMMISSIONERS:

ABSTAIN: COMMISSIONERS:
5 EXHIBIT “A”
DRAFT ORDINANCE NO. 26-980 AMENDMENTS TO
ARTICLE 48 (MIXED-USE OVERLAY ZONE) OF TITLE 9
(PLANNING AND ZONING) OF THE ARTESIA MUNICIPAL
CODE

CITY COUNCIL AGENDA REPORT
MEETING DATE: June 9, 2025 ITEM NO: 10E.

TO: Mayor and Members of the City Council
SUBJECT: Case No. 2023-01: Zoning Code Amendment, Zoning Text Amendment and Zone Map Amendment Pertaining To Mixed Use Overlay
FROM: Sal Lopez, Interim Community Development Director REVIEWED AND APPROVED BY:

Abel Avalos, City Manager
HongDao Nguyen, City Attorney
Melissa Burke, Deputy City Manager
RECOMMENDATION:

Staff is recommending that the City Council:

1. Adopt Resolution No. 25-3048, Approving a Proposed Zoning Code Amendment Establishing a Mixed-Use Overlay (Mu-O) Zone (Case No. 2023-01), Amend the City of Artesia Zoning Map, and Certify a Supplemental Environmental Impact Report for the Proposed Zoning Code Amendment;

2. Introduce and Waive the First Reading of Ordinance 25-970, adding article 46 (mixed-use overlay zone (MUO)) of chapter 2 (zoning) of title 9 (planning and zoning) of the Artesia Municipal code

3. Direct Staff to File Notice of Determination

PLANNING COMMISSION MEETING
At the May 20, 2025 Planning Commission Meeting, after receiving public testimony and deliberating, the Planning Commission adopted Resolution 2025-06P recommending the City Council approve the proposed Zoning Code Amendment establishing a Mixed Use Overlay (MU-O) Zone, amend the City of Artesia Zoning Map, and certify a Supplemental Environmental Impact Report for the proposed Zoning Code Amendment (Case No. 2023-01).

BACKGROUND:

PROJECT SUMMARY:

ADDRESS: An approximately 232-acre portion of the City generally extending along Pioneer Boulev from South Street to E. 166th St., and along Artesia Boulevard from Gridley Road Clarkdale Avenue.

ZONING: Existing: Multiple
Proposed: Mixed Use Overlay (MU-O) Zone
ADJACENT DEVELOPMENT: NORTH: Residences and commercial uses SOUTH: Single family residences and commercial shopping centers EAST: Schools, a church, apartments, and single-family residences WEST: Los Cerritos Center Mall, single-family residences, commercial businesses EXISTING ISSUES: Multiple

ASSESSOR INFORMATION
NO.

Multiple
SIZE: 232 acres
ANALYSIS:

The proposed Mixed-Use Overlay (MU-O) Zone is intended to implement key elements of the City of Artesia’s 2030 General Plan, including the 6th Cycle Housing Element, Community Planning Principle LU 1, and Policy Action LU

1.4.1. The MU-O would encourage high-quality, mixed-use infill development, combining residential, retail, and commercial uses while facilitating the production of affordable multi-family housing for very-low and low-income households. The MU-O supports increased housing densities and diverse land use options in alignment with California housing law (Government Code § 65580 et seq.) and the Regional Housing Needs Allocation (RHNA) assigned by the Southern California Association of Governments (SCAG).

The proposed Mixed-Use Overlay Zone would also establish a Community Benefit Program that would enable the accomplishment of greater residential density by permitting one additional story above the maximum number of stories within the MU-O, provided that minimum percentages of affordable residential units (dwelling units, or dus) were included. The ordinance is not intended to alter development rights or standards applicable to the underlying zoning or Specific Plans. The City’s Zoning Code (Artesia Municipal Code (AMC) § § 9-2.101 – 9-2.4508) does not assign zone-specific residential densities.

Zone Change/Zoning Code Amendment/Zoning Map Amendment
Mixed Use Overlay Zone
Purpose and Content
The MU-O for the City of Artesia is primarily intended to implement, in part, the City of Artesia 6th Cycle Housing Element of the Artesia General Plan, to encourage and to incentivize new mixed-use infill residential, retail, and commercial development within the city, and to facilitate affordable multi-family housing for very-low and lowincome classifications. This ordinance would also establish a Community Benefit Program that would increase residential density by permitting one additional story above the maximum number of stories within the MU-O. The ordinance is not intended to alter development rights or standards applicable to the underlying zoning or Specific Plans.

Implementing the MU-O would allow the City of Artesia to accomplish its housing needs per the current Regional Housing Needs Assessment (RHNA) as allocated by the Southern California Association of Governments (SCAG) and the State of California. This would affirmatively further housing for all income levels and incentivize affordable housing for lower-income and special-needs households. The RHNA for each city and county includes assigned values for housing units affordable to households of very low, low, moderate, and above-moderate incomes.

Artesia’s share of the RHNA is 1,069 units, including 312 very-low income, 168 low-income, 128 moderate income, and 461 above-moderate income units (SCAG, SCAG 6th Cycle Final RHNA Allocation Plan, available at https://scag.ca.gov/rhna (accessed April 1, 2025).

The proposed Mixed-Use Overlay Zone encompasses, but does not change the underlying zoning, including Specific Plans and their respective visions/goals.

Location and Setting
The parcels are generally located along Pioneer Boulevard from South Street to E. 166th St., and along Artesia Boulevard from Gridley Road to Clarkdale Avenue. The City proposes to amend the Zoning Code and Map to assign a “Mixed-Use Overlay” (MU-O) zone over 569 parcels (approximately 232 acres). The overlay would be organized in three overlay areas which would allow mixed residential-commercial uses, stand-alone multifamily residential uses under specific conditions, retail establishments, restaurants, and service and professional uses.

Objective development standards set forth common zoning requirements such as setbacks, building height, shared areas, etc. Residential developments that incorporate specified percentages of affordable units would be exempt from the City’s discretionary design review procedures.

Existing Zoning Designations
Ag-SF Agriculture-SF Residential
CG Commercial General
CPD Commercial Planned Development
CT Commercial Transition
CD Condominium
HMI Heavy Manufacturing/Industrial
HD Historic District
LMI Light Manufacturing/Industrial
MDR Medium-Density Residential
MC/SFR Mixed Commercial/Single Family
Residential
MFR Multiple-Family Residential
OS Open Space
SP Service & Professional
SFR Single Family Residential
AL-SP Artesia Live Specific Plan
P-SP Pioneer Specific Plan
SS SP South Street Specific Plan
AB-SP Artesia Blvd Specific Plan
ABC-SP Artesia Blvd Corridor Specific Plan
Document Organization
The Mixed-Use Overlay (MU-O) Ordinance is organized to provide a framework for development and guide the design of the mixed-use project. The following provides a description of the MU-O’s components:

Section 9-2.4601: Intent and Purpose – Explains the overall background, purpose, and goals of the MixedUse Overlay.

Section 9-2.4602: Applicability - Articulates the application of the MU-O Zone on properties and details development requirements and standards.

Section 9-2.4603: Definitions – The definitions section of the MU-O Zone ordinance clarifies key terms related to housing and development.

Section 9-2.4604: Principal Uses Permitted – Describes the principal permitted uses in the MU-O Zone including multi-family residential developments, mixed-use developments, supportive housing, employee housing, transitional housing, single-room occupancy etc.

Section 9-2.4605: Conditionally Permitted Uses – Explains the Conditionally Permitted uses in the MU-O Zone in compliance with the development standards in Section 9-2.4607.

Section 9-2.4606: Temporary Uses – Explains how properties may be utilized for temporary uses as set forth in Section 9-2.4002.

Section 9-2.4607: Development Requirements and Standards – The development requirements and standards for projects include several key provisions including participation in the Community Benefit Program, affordability, mixed-use development, etc.

Section 9-2.4608: Design Review – Details the applicability and exemptions of proposed developments.

Section 9-2.4609: Community Benefit Program – Describes the purpose of the program and Community Benefits (Artesia Density Bonus and the Affordable Housing in Lieu Fee) California Environmental Quality Act Compliance
The California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et seq) requires State and local agencies to evaluate the environmental consequences of projects subject to their discretionary approval.

Environmental Impact Reports (EIRs), including Supplements to Program EIRs, provide critical information to decision-makers and the public regarding potential environmental impacts, mitigation measures, and project alternatives. The City of Artesia previously certified a Program EIR for the 2030 General Plan (State Clearinghouse No. 2008011004) in 2010. The proposed Mixed-Use Overlay (MU-O) Zone implements General Plan Policy Action LU 1.4.1, which commits the City to establishing an overlay zone to allow for mixed-use development. The City has prepared a Supplemental Environmental Impact Report (SEIR) to the General Plan Program EIR (GPPEIR) to analyze the environmental impacts associated with the MU-O Zone, including revisions to permitted uses, development standards, and design guidelines. The SEIR has been prepared in compliance with CEQA, the State CEQA Guidelines (California Code of Regulations, Title 14, Section 15000 et seq.), and the City’s adopted CEQA procedures. The SEIR follows Section 15162 and 15163 of the CEQA Guidelines. As the CEQA Lead Agency, the City of Artesia determined that while the proposed zoning code amendments represent a minor change to the overall General Plan, a Supplement was warranted to address potential new or more severe impacts. An accompanying Initial Study and Environmental Checklist were prepared to support this analysis and identify any necessary additional mitigation measures, as set forth in the SEIR.

Zone Change and Zoning Code Amendment (Mixed-Use Overlay) Section 9-2.501 shall be applied to include the “Mixed-Use Overlay Zone” as an approved and established implementation to the General Plan Community Development and Design Element & Land Use Sub Element Community Planning – Principal LU 1 and to be designated on the Artesia Zoning Map.

Zoning Map Amendment
The adoption of the MU-O Zone shall be accompanied by an amendment to the Zoning Map of the City of Artesia to change the zoning classification of the area covered by the MU-O Zone. The MU-O Zone shall be designated on the Zoning Map with the designation “MU-O” followed by a reference number that corresponds to the parcels.

There are 569 parcels, totaling approximately 232 acres that will be assigned the MU-O designation, in three areas identified as Overlay Zone areas 1, 2, and 3 as illustrated on Map A of the MU-O ordinance.

The City’s Zoning Code (Artesia Municipal Code (AMC) § § 9-2.101 – 9-2.4508) does not assign zone-specific residential densities.

Staff believes that the proposed zoning amendments to the 2030 General Plan Land Use Element Policy Action LU

1.4.1 may have significant effects on the environment even with mitigation measures that have been incorporated to result in less than significant impacts, but that these significant effects are acceptable because the ordinance will address the current severe housing shortage as set forth in California Housing Law.

Findings Required.

Cities may amend zoning ordinances to change properties from one zone to another in the manner provided for in Government Code Sections 65854-65857. Government Code Section 65855 states that the Planning Commission must make a written recommendation to the City Council on the applicant’s proposed amendment to the City’s Zoning Map. The recommendation must include the reasons for the recommendation and the relationship of the proposed zone reclassification to the General Plan 2030.

Findings.

Based on the evidence and all other applicable information presented, Planning Staff recommends that the Planning Commission find and recommend to the City Council that the proposed amendment to the City’s Zoning Code and Zoning Map (collectively the “proposed Zoning Amendments”) to amend the existing Zoning Code and Zoning Map of the 569 parcels generally located along Pioneer Boulevard, Artesia Boulevard, and South Street corridors. Specific parcels are identified by Assessor’s Information Number (AIN) in SEIR Appendix 2, to implement the Mixed-Use Overlay for the following reasons:

A. The proposed Zoning Amendments are consistent with the General Plan 2030 goal of a well planned community with sufficient land uses and intensities to meet the needs of anticipated growth and achieve the community’s vision (Community Goal LU 1) by creating a mixed land use pattern that will foster a strong community identity, enhance the City Center core, provide new employment, housing, shopping, and entertainment opportunities, and strengthen the City’s tax base; B. The proposed Mixed-Use Overlay Zone will not adversely affect or be detrimental to adjacent properties as the development standards in the MU-O ordinance as well as those in the City of Artesia General Plan will apply to ensure the protection and enhancement of adjacent residential neighborhoods. The Supplement to the General Plan Program EIR prepared for the project identifies environmental impacts that can and cannot be mitigated. The Findings Report attached sets forth specific findings that describe impacts that cannot be mitigated to less than significant levels, but are justified because the Mixed Use Overlay Zone addresses the City’s requirements to affirmatively further affordable housing; and C. The proposed Zoning Amendment is consistent with the following provisions of the General Plan 2030 Community Policy Program:

3. Community Policy LU 1.3 and Policy Action LU 1.3.1, which encourages active and inviting pedestrianfriendly street environments that include a variety of uses within commercial and mixed-use areas by enhancing access, safety and the streetscape experience for pedestrians, bicyclists, and transit riders; and focus improvements in areas with the highest need;

5. Community Policy LU 3.1, which encourages a mix of retail shops and services along the commercial corridors that better meet the needs of the area’s present and future customers, by repurposing underperforming commercial properties in order to effectively transition them to a more viable land use.

LEGAL NOTICE REQUIREMENTS
Notice of the public hearing was published on April 30, 2025 in the Los Cerritos Community News. The Notice of Availability of a Supplemental Environmental Impact Report was published in the Los Cerritos Community News and at the Los Angeles County Clerk Office on April 18, 2025 for a thirty (30) day public review and comment period for the project’s Recirculated Draft, Supplemental Environmental Impact Report (SCH# 2010041003, beginning April 18, 2025 and ending on May 23 2025 at 4:30 p.m. The Supplemental EIR and Supporting Documents were uploaded to the State Clearinghouse CEQA Submit Database on April 17, 2025, returned for corrections, published on April 23, and circulated to State Agencies from April 23, 2025, to May 23, 2025.

ENVIRONMENTAL ASSESSMENT
The Planning staff makes the following environmental findings and determinations in connection with this project:

A. Pursuant to the California Environmental Quality Act (“CEQA”) and the City’s local CEQA Guidelines, City staff prepared a Supplemental Environmental Impact Report (EIR) to the 2030 General Plan EIR for the proposed Mixed-Use Overlay Zone (MU-O). The proposed overlay zone would be applied over an area generally extending along Pioneer Boulevard from South Street to E. 166th St., and along Artesia Boulevard from Gridley Road to Clarkdale Avenue.

B. The Zoning Code Amendment will establish the MU-O. The proposed overlay zone and the amendment to the Artesia Zoning Map would add the MU-O to the existing underlying zones. These actions together constitute the “Project” evaluated pursuant to CEQA.

Based upon the findings contained in the Supplemental Environmental Impact Report (SEIR), City staff determined that adopting the MU-O could cause significant and unavoidable impacts to the environment in the areas of air quality, greenhouse gas emissions (GHG), utilities and service systems, and population and housing. There could be additional impacts associated with aesthetics, cultural resources, geology and soils, hazards and hazardous materials, land use and planning, noise and vibration, transportation, tribal cultural resources, but these impacts could be mitigated through application of mitigation measures from the General Plan EIR and new measures in the SEIR.

Planning Staff has reviewed the SEIR and any comments received to date during the April 18, 2025 - May 23, 2025 public comment period regarding the SEIR and, based on the whole record before it, finds: (i) that the SEIR was prepared in compliance with CEQA; and (ii) that the project will have a significant effect on the environment; but (iii) there are no feasible alternatives to the project or mitigation measures that will avoid or substantially lessen the significant environmental effects as identified in the Draft SEIR for project-specific significant and unavoidable impacts to air quality, GHG, utilities and service systems, and population and housing. Based on these findings, Planning Staff hereby recommends that the Planning Commission recommend that the City Council amend the Artesia Municipal Code, Title 9 Planning and Zoning 2.501, Established: to establish a Mixed-Use Overlay (MU-O) Zone.

C. The custodian of records for the Initial Study, SEIR and all other materials which constitute the record of proceedings is the Planning Department of the City of Artesia. Those documents are available for public review in the Planning Department of the City of Artesia, located at 18747 Clarkdale Avenue, California 90701, telephone (562) 865-6262.

RECOMMENDED COUNCIL ACTION:

Staff is recommending that the City Council:

2. Introduce and Waive the First Reading of Ordinance 25-970, adding article 46 (mixed-use overlay zone (MUO)) of chapter 2 (zoning) of title 9 (planning and zoning) of the Artesia Municipal code

3. Direct Staff to File Notice of Determination
Attachments
Resolution No. 25-3048.pdf
Ordinance No. 25-970.pdf
Artesia Mixed Use Overlay SEIR Checklist.pdf
Artesia Mixed Use Overlay SEIR NOD.pdf
MUO SEIR MMRP.pdf

NOTICE OF PUBLIC HEARING
NOTICE IS HEREBY GIVEN THAT the City Council of the City of Artesia will hold a Public Hearing in the City Council Chambers of Artesia City Hall located at 18747 Clarkdale Avenue, Artesia, California at 6:00 pm on Monday, January 26, 2026, to consider the following:

Project Description: Case No. 2025-31: The Planning Commission recommends that the City Council approve Ordinance No. 26-980, an amendment to the Mixed Use Overlay (MU-O) Zone. The ordinance would amend Artesia Municipal Code Sections 9-2.4801 through 9-2.4805 and Sections 9-2.4807 through 9-2.4809 to reduce the minimum required residential density from 70 dwelling units per acre to 40 dwelling units per acre; update development standards and requirements; revise Design Review procedures; and make minor revisions to permitted uses, definitions, and ordinance applicability.

Project Location: Citywide
Applicant: City of Artesia
CEQA: The proposed Municipal Code amendments are exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3) (Common Sense Exemption), as the amendments do not approve a specific development project and it can be seen with certainty that there is no possibility that the amendments will have a significant effect on the environment.

In addition, the City previously prepared and certified a Supplement to the City of Artesia General Plan 2030 Environmental Impact Report (State Clearinghouse No. 2010041003), which was adopted by the City Council on July 14, 2025, in connection with Ordinance No. 25-970, amending the Artesia Municipal Code to add Article 48 (Mixed-Use Overlay Zone).

The proposed amendments are consistent with, and within the scope of, the analysis contained in the previously certified environmental document.

Members from the public who would like to address the City Council may appear at the public hearing during the consideration of this item and state their opinion. If you have written comments that you wish to submit, please deliver them to the Artesia City Clerk’s Office, 18747 Clarkdale Avenue, Artesia, CA, or by email: [email protected] prior to the start of the public hearing. If you have questions about this notice or the proposed action, please contact the Artesia Community Development Department at (562) 865-6262 or by the email above.

If you challenge any action related to this public hearing in court, you may be limited to raising only those issues you raised at the public hearing described in this notice, or in written correspondence delivered at, or prior to, the public hearing.

PUBLISHED: January 16, 2026
Paul Bollier, Community Development Director
Phone: 562-865-6262 Ext. 200 or 224
Email: [email protected]

CITY COUNCIL AGENDA REPORT
MEETING DATE: January 26, 2026 ITEM NO: 5A.

TO: Mayor and Members of the City Council
SUBJECT: Transmittal of Annual Comprehensive Financial Report for Fiscal Year 2024-25 FROM: Jamie Murguia, Finance Manager
REVIEWED AND APPROVED BY:

Melissa Burke, Deputy City Manager
Abel Avalos, City Manager
RECOMMENDATION:

It is recommended that the City Council receive and file the Transmittal of Annual Comprehensive Financial Report for Fiscal Year 2024-25
BACKGROUND:

Annually, the Finance Department prepares and publishes the City of Artesia ("City") Annual Comprehensive Financial Report (ACFR) following the completion of an independent and certified audit. The City's independent certified audit firm is Moss, Levy & Hartzheim LLP. The ACFR is an extensive report summarizing the financial activities of the City that occurred from July 1, 2024 through June 30, 2025.

The ACFR is prepared in compliance with the Governmental Accounting Standards Board (GASB) standards.

Pursuant to GASB guidelines, the City’s ACFR is divided into three sections: Introductory, Financial and Statistical.

The Introductory section contains a Letter of Transmittal from the City Manager. This letter includes a brief profile of the City, and the City's economic condition and outlook.

The Financial section contains the independent auditor’s report, Management’s Discussion & Analysis (MD&A), and the basic financial statements. Moss, Levy & Hartzheim LLP has issued an unmodified (“clean”) opinion of the financial statements for the fiscal year ended June 30, 2025. This means that their examination, testing and audit procedures concluded that the financial statements present fairly, in all material respects, the financial position of the City. This is the best opinion that the City can receive from its auditors.

The MD&A provides a narrative of how the financial report is presented and key highlights of some of the changes in financial position. The MD&A also provides tables showing comparative information from fiscal year ended June 30, 2024 to June 30, 2025, including changes in net position (difference in assets and liabilities). The final section of the ACFR is the Statistical Section. This section presents data useful in analyzing the City’s financial and operational history for comparative purposes.

The City was awarded the Certificate of Achievement for Excellence in Financial Reporting (COA) for its Fiscal Year ended June 30, 2024 ACFR. The COA from the Government Finance Officer's Association (GFOA) is regarded as the highest form of recognition in governmental accounting and financial reporting.The recognition marks the first time the City has achieved this prestigious recognition since 2015, and is a significant accomplishment for the City. Staff will be submitting the ACFR for the Fiscal Year ended June 30, 2025 for consideration of the COA Program.

FISCAL IMPACT:

There is no fiscal impact associated with approval of this item.

RECOMMENDED COUNCIL ACTION:

It is recommended that the City Council receive and file the Transmittal of Annual Comprehensive Financial Report for Fiscal Year 2024-25
Attachments
Final Artesia ACFR FY 25.pdf
Annual Comprehensive
Financial Report
Fiscal Year Ended June 30, 2025
www.cityofartesia.us

CITY OF ARTESIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
Fiscal Year Ended June 30, 2025

TABLE OF CONTENTS
I. INTRODUCTORY SECTION
Letter of Transmittal ....................................................................................................................... i GFOA Award Certificate ............................................................................................................... vi Organization Chart ....................................................................................................................... vii Principal Officials ....................................................................................................................... viii II. FINANCIAL SECTION
A. Independent Auditor’s Report ................................................................................................ 1 B. Management’s Discussion and Analysis (Unaudited) ............................................................ 5 C. Basic Financial Statements
Government-wide Financial Statements:

Statement of Net Position ............................................................................................. 15 Statement of Activities ................................................................................................. 16 Fund Financial Statements:

Governmental Funds:

Balance Sheet ......................................................................................................... 19 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ......................................................................... 20 Statement of Revenues, Expenditures, and Changes in Fund Balances................. 21 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities ......................................................................................................... 22 Fiduciary Funds:

Statement of Fiduciary Net Position ...................................................................... 23 Statement of Changes in Net Position – Private-Purpose Trust Fund ................... 24 Notes to Basic Financial Statements……………………………………………………..25 D. Required Supplementary Information:

Schedule of Proportionate Share of Net Pension Liability – City Misc Plan .......... 53 Schedule of Pension Contributions – City Misc Plan .............................................. 54 Schedule of Changes in Total OPEB Liability and Related Ratios ......................... 55 Schedule of OPEB Employer Contributions ........................................................... 56 Note to Required Supplementary Information ........................................................ 57 General Fund – Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual ..................................................................... 58 Billboard Fund – Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual ..................................................................... 59

CITY OF ARTESIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
Fiscal Year Ended June 30, 2025

TABLE OF CONTENTS
II. FINANCIAL SECTION (Continued)
E. Other Supplemental Information
Capital Projects Fund – Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual ..................................................................... 60 Nonmajor Governmental Funds
Combining Balance Sheet ............................................................................................ 61 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ....................................................................................................... 63 Schedules of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
State Gas Tax Special Revenue Fund .................................................................... 65 Bicycle & Pedestrian Special Revenue Fund ......................................................... 66 Proposition A Special Revenue Fund .................................................................... 67 CDBG Special Revenue Fund ............................................................................... 68 Parks and Recreation Grants Special Revenue Fund ............................................. 69 Proposition C Special Revenue Fund ..................................................................... 70 Air Quality Special Revenue Fund ......................................................................... 71 Cal Recycle Grant Special Revenue Fund .............................................................. 72 Measure W Special Revenue Fund ......................................................................... 73 Development Impact Fees Special Revenue Fund ................................................. 74 SB1 Special Revenue Fund .................................................................................... 75 Artesia Lighting District Special Revenue Fund ................................................... 76 Measure M Special Revenue Fund ........................................................................ 77 Metro TOD 4 Special Revenue Fund ..................................................................... 78 C.O.P.S. Grant Special Revenue Fund ................................................................... 79 CFD Special Revenue Fund ................................................................................... 80 Measure R Special Revenue Fund .......................................................................... 81 Housing Authority Special Revenue Fund ............................................................. 82 Cal Fire Urban Grant Special Revenue Fund ......................................................... 83 California Natural Resources Grant Special Revenue Fund .................................. 84 HUD Special Revenue Fund .................................................................................. 85 III. STATISTICAL SECTION
F. Description of Statistical Section
G. Financial Trends
Net Position by Component.................................................................................... 87 Changes in Net Position by Component ................................................................. 88 Fund Balances of Governmental Funds ................................................................. 90 Changes in Fund Balances of Governmental Funds .............................................. 91

CITY OF ARTESIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
Fiscal Year Ended June 30, 2025

TABLE OF CONTENTS
III. STATISTICAL SECTION (Continued)
H. Revenue Capacity
Governmental Activities Tax Revenues by Source ................................................ 93 Assessed Value of Taxable Property ...................................................................... 94 Assessed Value of Taxable Property by Use .......................................................... 95 Direct and Overlapping Property Tax Rates ........................................................... 96 Principal Property Taxpayers ................................................................................. 97 Property Tax Levies and Collections ...................................................................... 98 I. Debt Capacity
Ratios of Outstanding Debt by Type ...................................................................... 99 Direct and Overlapping Bonded Debt .................................................................. 100 Legal Debt Margin ............................................................................................... 101 J. Demographic and Economic Information
Demographic and Economic Statistics ................................................................. 102 Principal Employers ............................................................................................. 103 K. Operating Information
Full Time Equivalent City Government Employees by Function/Program ............ 104 Operating Indicators by Function .......................................................................... 105 Capital Asset Statistics by Function ...................................................................... 106 i
“Service Builds Tomorrow’s Progress”

THE CITY OF ARTESIA, CALIFORNIA
18747 CLARKDALE AVENUE, ARTESIA, CALIFORNIA 90701
Telephone 562 / 865-6262
FAX 562 / 865-6240
January 26, 2026
To the Honorable Mayor, Members of the City Council,
And Residents of the City of Artesia
The Annual Comprehensive Financial Report (ACFR) of the City of Artesia (City), California, for the year ended June 30, 2025 is hereby submitted. Responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with the City. To the best of our knowledge, the enclosed data is accurate in all material respects and is reported in a manner designed to present fairly the financial position, results of operations and cash flows of the various funds of the City. All disclosures necessary to enable the reader to gain an understanding of the City’s financial activities have been included.

The financial statements are the responsibility of the City’s management. Completeness and reliability of the information contained in this report is based upon a comprehensive framework of internal controls that is established for this purpose. The costs of internal control should not exceed the anticipated benefits. The objective of internal controls is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements.

The Management’s Discussion and Analysis (MD&A) interprets the financial reports by analyzing trends and by explaining changes, fluctuations, and variations in the financial data. In addition, the MD&A is intended to disclose any known significant events or decisions that affect the financial condition of the City. The MD&A complements this letter of transmittal and should be read in conjunction with it.

Independent Audit
City policy requires that its financial statements be audited by a certified public accountant. Moss, Levy & Hartzheim LLP, Certified Public Accountants and Consultants, have issued an unmodified (“clean”) opinion on the City’s financial statements for the fiscal year ended June 30, 2025. The auditor’s report on the basic financial statements and required supplementary information is included in the financial section of this report.

The City is required to undergo an annual single audit in conformity with the provisions of the Single Audit Act of Amendments of 1996 and the U.S. Office of Management and Budget Circular A-133, Audits of State and Local Governments and Not for Profit Organizations. A separate single audit report includes the schedule of expenditures of federal awards, auditors' report on internal controls, and compliance with applicable laws and regulations. ii
Single Audit
The City is legally required to undergo an annual single audit in conformity with the provisions of the Single Audit Act of 1984 and the U.S. Office of Management and Budget Uniform Guidance, Audits of State and Local Governments, if total federal grant expenditures exceed $750,000 in a single year. Throughout the course of FY 2024-25, the City did not expend federal funds in excess of the $750,000 threshold; therefore, no Single Audit will be required.

Spending Limitation
Management foresees no problem for several years in complying with the spending limitation under the Gann Initiative passed by the California voters in 1979, which created Article XIIIB of the State Constitution. The City's independent auditors have attested to the accuracy of the computation of the spending limitations for the current period, which indicated that the City’s tax proceeds are substantially under the established Gann Limit and are not expected to reach that limit in the foreseeable future.

Profile of the City of Artesia
Incorporated in 1959, the City of Artesia is located within southeast Los Angeles County. The City encompasses an area of approximately 1.6 square miles, with a current population is 16,359 according to the State of California Department of Finance. There are three major retail areas, one industrial area, and a multi-story office park.

The City is a general law city and operates under the Council-Manager form of municipal government. The City Council is comprised of five members elected biannually, at large, to fouryear alternating terms. The Mayor and Mayor Pro Tem are selected each year by the City Council.

The City Manager is appointed by the City Council to manage the daily affairs of the City and to implement policies established by the Council. The City budgets for an authorized staff of approximately 39.3 full-time equivalent positions.

The City provides a full range of municipal services including law enforcement (via a contract with the Los Angeles County Sheriff Department); construction and maintenance of arterials, streets and infrastructure; recreational services; public transportation; planning and economic development; housing; and administrative services. In addition to general municipal activities, the City provides refuse and recycling collection services (via a contract with CR&R, Inc.).

The Council is required to adopt a final budget by June 30th of each fiscal year. In Fiscal Year 2024-25, the Council adopted the annual budget on June 17, 2024, and the mid-year budget on February 10, 2025. The annual budget serves as the foundation for the City’s financial planning and control. The budget is prepared by fund, program (e.g., public safety), and activity (e.g., law enforcement). This report includes all the funds of the City. The City Manager may appropriate resources up to $42,144 from budgeted funds. Expenditures above this threshold requires approval from the City Council.

In accordance with the reporting entity definition of the Governmental Accounting Standards iii
Board, the ACFR includes the financial activities of the City of Artesia, the primary government, and its component units, which are the Artesia Parking Authority and the Artesia Housing Authority. The operations of these units are included within the Basic Financial Statements of the City.

The resources and activities of the Successor Agency to the City of Artesia Redevelopment Agency are reported in a separate Private-Purpose Trust Fund, which is also included in these financial statements.

Several state and county agencies and school districts provide services to the City, but do not meet the established criteria for inclusion, and accordingly are excluded from this report.

Economic Condition and Outlook
The prospects for the future of the City are good. The population has remained steady as shown:

Source: State of California Department of Finance
The City of Artesia incorporated on May 29, 1959 with the motto “Service Builds Tomorrow’s Progress”. In 1957, the community roads of Pioneer, South Street, and Artesia Boulevard were paved, two-lane roads. Over the years, the Public Works Department has maintained the City’s roads and infrastructure. In Fiscal Year 2024-25, the City made infrastructure improvements to address street repairs, implement traffic calming measures, and remediate tripping hazards on sidewalks.

Much of the local development of the City before the 1950’s was farm, orchard, or grazing lands.

In 1955, the Bradley-Burns Act was passed, which provided a one percent sales tax rebate for cities, to be distributed by the state. The sales and use tax has been the leading tax source in the City. In recent years, the City has been focused on diversifying the City’s tax base to add additional revenue to provide resources with which to serve its residents.

The City’s economy has always relied on sales tax as the primary revenue source to support the purposes of the City’s government. Sales tax for Fiscal Year 2024-25 makes up more than onefourth of the general fund revenues. In 2025, the City saw diversity develop among its revenue Year Population
1960 10,000
1970 14,757
1980 14,301
1990 15,464
2000 16,380
2005 17,432
2010 17,488
2015 16,781
2020 16,490
2025 16,359
0 2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
1960 1970 1980 1990 2000 2005 2010 2015 2020 2025
Population Growth
iv
tax base. With overwhelming community support, Measure AAA (Transactions and Use Tax) was adopted in November 2024. The new 3/4 cent tax went into effect on April 1, 2025, bringing in an additional $800,000 in new revenue to the City. The City’s three cannabis retailers opened operations in the City, further diversifying the City’s revenue tax base and providing funding for the Community Benefits Pilot Grant Program aimed at supporting local initiatives aligned with enhancing community services. A vibrant sector of the City’s economy is the Restaurant and Hotel major business group. In 2025, the City continued its tradition of its dine local program, Restaurant Week, to encourage patronage at local food establishments and bolster the local economy.

Restaurant week saw a 10.5% increase in participation from local restaurants, with 42 participating establishments attracting residents and visitors to enjoy Artesia’s diverse eateries.

Furthermore, the City approved the issuance of 170 new business licenses, an 86% increase from the previous year, contributing to a healthy local economy.

The City is included in the Los Angeles-Long Beach Metropolitan Statistical Area. The following table summarizes the civilian labor force, employment and unemployment, and employment rate in the County and the City for calendar years 2021 through September, 2025:

LOS ANGELES COUNTY AND CITY OF ARTESIA STATISTICAL AREA Civilian Labor Force, Employment, Unemployment and Unemployment Rate Annual Averages (000’s) (1)
2021 2022 2023
County City County City County City County City County City Civilian Labor Force (2) 5,009 7.80 4,948 7.60 4,968 7.70 5,042 7.80 5,042 7.90 Employment 4,647 7.10 4,724 7.20 4,743 7.20 4,749 7.20 4,749 7.30 Unemployment 363 0.70 224 0.40 224 0.40 294 0.60 294 0.60 Unemployment Rate 7.20% 11.50% 4.50% 8.80% 4.50% 6.20% 5.80% 6.30% 5.80% 7.90% 2024 2025
(1) Not seasonally adjusted.
(2) Labor force data is by place of residence; includes self-employed individuals, unpaid family workers, household domestic workers, and workers on strike.

Source: Labor Market Information Division of the California State Employment Development Department.

Unemployment Rate
Artesia versus LA County

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

9.00%

10.00%

11.00%

12.00%

13.00%
2021 2022 2023 2024 2025
Los Angeles County City of Artesia

Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Artesia
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2024
Executive Director/CEO
vi
Council member
Admin. Services Public Work:i Finance Degartment
- -
Deputy City Manager PW Manager Finance Manager
(4) (1) (1) ,_ Management Analyst - Lead Maintenance - Management Analyst Specialist (1) (2) (1)
Admin Analyst - Maintenance - Sr. Accountant Specialist I (3) (1)
- Maintenance Worker - Accounting Tech II
II
City of Artesia Organizational Chart
Councilmember Mayor Mayor Pro Tern Council member
City Manager City Attorney
City Clerk Admin Secretary
Special Projects Human Reljourcelj Com. Develogment
Manager HR Manager CD Director
(2) (1) -
Admin Assistant Planning Manager
-
I
(1) (4)
Assistant Planner - Code Compliance
Officer
(3) - (PT} Parking
Enforcement Officer
Park:i & Rec
Parks & Rec Mngr
I
Parks & Rec
Supervisor
(2)
Recreation Program -
Coordinator
- Parks&
(5)
(1)
Rec Leader
II
(1)
(PT} Parks & Rec
Leader I
-- (FT} Parks & Rec
Leader I
vii

CITY OF ARTESIA, CALIFORNIA
List of Principal Officials
2024-2025
Elected Officials Term Expires
Mayor:

Ali Sajjad Taj November 2026
Mayor Pro Tem:

Rene Trevino November 2026
Council Members:

Melissa Ramoso November 2026
Monica Manalo November 2028
Zeel Ahir November 2028
Administrative Staff Date of Hire
City Manager: *
Abel Avalos October 2024
Deputy City Manager:

Melissa Burke June 2022
Finance Manager:

Jamie Murguia March 2021
City Attorney: *
HongDao Nguyen December 2020
City Clerk:

Jennifer Alderete June 2022
City Treasurer:

Jamie Murguia June 2023
Fire Chief: **
Anthony C. Marrone February 2023
Sheriff: ***
Robert G. Luna November 2022
Community Development Director:

Vacant
* Appointed by City Council
** Appointed by Los Angeles County Fire District
*** Appointed by Los Angeles County Sheriff Department
viii

PARTNERS COMMERCIAL ACCOUNTING & TAX SERVICES GOVERNMENTAL AUDIT SERVICES CRAIG A HARTZHEIM, CPA 8383 WILSHIRE BLVD., SUITE 800 5800 HANNUM AVE., SUITE E HADLEY Y HUI, CPA BEVERLY HILLS, CA 90211 CULVER CITY, CA 90230 ADAM V GUISE, CPA TEL: 310.670.2745 TEL: 310.670.2745
TRAVIS J HOLE, CPA FAX: 310.670.1689 FAX: 310.670.1689
WILSON LAM, CPA www.mlhcpas.com www.mlhcpas.com
1 OFFICES: BEVERLY HILLS ∙ CULVER CITY ∙ SANTA MARIA
MEMBER AMERICAN INSTITUTE OF C.P.A.’S ∙ CALIFORNIA SOCIETY OF MUNICIPAL FINANCE OFFICERS ∙ CALIFORNIA ASSOCIATION OF SCHOOL BUSINESS OFFICIALS

INDEPENDENT AUDITOR'S REPORT
To the Members of the City Council
City of Artesia, California
Opinions
We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of City of Artesia, California as of and for the fiscal year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Artesia, California, as of June 30, 2025, and the respective changes in financial position for the fiscal 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 accepted in the United States of America and those standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent 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.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes 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.

In preparing the financial statements, management is required to evaluate whether 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 twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
2 Auditor's Responsibility for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and 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 generally accepted auditing standards 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 generally accepted auditing standards 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 control-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 on pages 5 through 14, Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget to Actual – General Fund, and the Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget to Actual –Billboard Special Revenue Fund, Schedule of Changes in the Net Pension Liability and Related Ratios, Schedule of Pension Contributions, Schedule of Changes in Total OPEB Liability and Related Ratios, and Schedule of OPEB Employer Contributions on pages 53 through 59 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context.

We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, 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 procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
3 Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Artesia’s basic financial statements. The Budgetary Comparison Schedule for the major Capital Projects fund; the Combining Financial Statements, and individual Budgetary Comparison Schedules for the Nonmajor Governmental Funds listed in the table of contents are presented for purposes of additional analysis and are not required parts of the basic financial statements.

The major Capital Projects fund, the Combining Financial Statements, and individual Budgetary Comparison Schedules for the Nonmajor Governmental Funds are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in our 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 financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole.

Other Information
Management is responsible for the other 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 basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. 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 report dated January 20, 2026, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on 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 the City’s internal control over financial reporting and compliance.

MOSS, LEVY & HARTZHEIM, LLP
Culver City, CA
January 20, 2026
4 This page intentionally left blank.
5 Management's Discussion and Analysis
As management of the City of Artesia, we offer readers of the City of Artesia’s financial statements this narrative overview and analysis of the financial activities of the City of Artesia for the Fiscal Year ended June 30, 2025. We encourage readers to consider the information presented here in conjunction with additional information furnished in the letter of transmittal and the City's basic financial statements for a more comprehensive overview of the City’s financial status for the period ending June 30, 2025.

Financial Highlights
The comparisons provided in this discussion and analysis are between Fiscal Year 2023-24 and Fiscal Year 2024-25; all increases and decreases are expressed relative to Fiscal Year 2023-24 amounts.

Financial highlights for FY 2024-25 are summarized below. Details related to the highlights in this report are found in the remaining sections of this analysis.

Citywide
• The assets and deferred outflows of resources of the City of Artesia (City) exceeded its liabilities and deferred inflows of resources at the close of the fiscal year by $48,784,385 (net position). • Of this amount, the City has unrestricted net position of $6,818,180, which may be used to meet the government's ongoing obligations to residents and creditors. • The City’s net position increased by $4,067,948 over the prior fiscal year and is largely attributed to revenues exceeding expenditures as report in the Statement of Activities. The remainder of this report will provide a more detailed analysis of the City’s net position and operating activities that contributed to this increase.

Fund Level
• As of June 30, 2025, governmental funds reported combined ending fund balances of $27,278,524, an increase of $1,594,548 in comparison to the prior fiscal year. Approximately 33% of this amount is committed or assigned to indicate that it is not available because it has been set aside for projects or specific purposes. Another 40% is legally restricted by resolution or third party covenants.
• As of June 30, 2025, the unassigned fund balance for all governmental funds was $7,265,147.

Overview of the Financial Statements
The Governmental Accounting Standards Board requires this discussion and analysis as required supplementary information. This discussion and analysis is intended to serve as an introduction to the City of Artesia’s basic financial statements. The basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. The report also contains other supplementary information and required supplementary information in addition to the basic financial statements themselves. 6 Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of the City of Artesia’s finances, in a manner similar to a privatesector business.

The statement of net position presents information on all of the City of Artesia’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.

The statement of activities and changes in net position presents information showing how the government's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned, but unused, vacation leave).

Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges. The governmental activities of the City include general government, public safety, parks and recreation, public works and community development.

The government-wide financial statements include not only the City itself (known as the primary government) but also the blending of the legally separate Artesia Housing Authority and Artesia Parking Authority for which the City is financially accountable. These component units are therefore included as an integral part of the primary government.

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 Artesia, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with financerelated legal requirements. All of the funds can be divided into three categories: governmental funds, proprietary funds and fiduciary funds.

Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, 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. Such information may be useful in evaluating a government's near-term financing requirements.

Fund balance is categorized into a hierarchy of five classifications: non-spendable, restricted, committed, assigned, and unassigned. These five categories facilitate analysis and understanding of the City's commitment of financial resources.

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 7 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, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The City maintains several individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the funds below, which are considered to be major funds:
 General Fund
 Billboard
 Capital Projects Fund
Major funds are governmental or enterprise funds whose revenues, expenditures/expenses, assets or liabilities are at least 10% of corresponding totals for all governmental or enterprise funds and at least 5% of the corresponding total for all governmental and enterprise funds combined.

Data from all other non-major governmental funds are combined into a single, aggregated presentation.

Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report.

The City adopts an annual appropriated budget for its General Fund. A budgetary comparison schedule has been provided for the General Fund and Billboard Fund to demonstrate compliance with these adopted budgets.

Proprietary funds. The City of Artesia has no proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements.

Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statement because the resources of those funds are not available to support the City of Artesia’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The Successor Agency to the Artesia Redevelopment Agency (ASA) is a public entity created by AB X1 26 (2011) and the City of Artesia effective February 1, 2012 to wind down the affairs of the former Artesia Redevelopment Agency.

Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements.

Supplementary Information
In addition to the basic financial statement and accompanying notes, this report also presents certain required supplementary information. Required supplementary information is found immediately following the notes to the basic financial statements.

Optional supplementary information is presented as combined and individual statements for other governmental and agency funds. This optional supplementary information can be found immediately following the required supplementary information.
8 Financial Analysis of the Government-wide Statements
As noted earlier, net position may serve over time as a useful indicator of a government's financial position. As of June 30, 2025, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $48,784,385.

By far the largest portion of the City of Artesia’s net position, $32,047,928 represents resources invested in capital assets. Capital assets provide services to residents and are not available for future spending.

Resources needed to repay the related debt outstanding must be provided from other sources because the capital assets usually are not used to liquidate these liabilities.

An additional portion of net position (20%) represents resources that are subject to external restrictions on how it may be used, and therefore $9,918,277 may not be used to meet the government's ongoing obligations to residents and creditors.

The City’s net position for government-wide statements increased by $4,067,948, or 9% during the fiscal year as a result of revenues exceeding expenditures during this fiscal year. The total cost of all City activities was $19,912,572. Net cost of all activities was $11,907,473. Both revenue increases and expense decreases are discussed in more detail in the following report sections.

Governmental Activities
This analysis focuses on the net position and changes in net position of the City’s governmental activities which are presented in the government-wide financial statements. 2025 2024
Current and other assets $ 33,215,630 $ 31,256,894
Capital assets 32,047,928 29,833,801
Total assets 65,263,558 61,090,695
Deferred outflows of resources 1,650,648 2,119,620
Long-term liabilities outstanding 10,859,282 11,486,933 Other liabilities 2,922,816 2,364,015
Total liabilities 13,782,098 13,850,948
Deferred inflows of resources 4,347,723 4,642,930
Net position:

Net investment in capital assets 32,047,928 29,833,801
Restricted 9,918,277 8,600,698
Unrestricted 6,818,180 6,281,938
Total net position $ 48,784,385 $ 44,716,437
Governmental Activities Net Position
The net position of the governmental activities represents 100% of the City’s total net position. Restricted net assets include external restrictions relating to public safety, street projects, housing and other purposes. Restricted net position increased by $1,317,579 or 15%. 9 Governmental activities. Governmental activities increased the City of Artesia’s net position by $4,067,948. Key elements of this increase are as follows:
2025 2024
Revenues
Program revenues:

Charges for services $ 2,167,863 $ 2,606,842
Operating grants and contributions 1,402,278 1,393,028
Capital grants and contributions 4,434,958 4,579,342
General revenues:

Property taxes 2,535,284 2,426,156
Transient occupancy taxes 594,972 626,137
Sales taxes 6,572,790 5,505,982
Franchise taxes 993,686 995,682
Business license taxes 1,024,268 818,066
Other taxes 756,301 207,367
Use of money and property 1,807,068 2,289,377
Other 1,691,052 745,928
Total revenues 23,980,520 22,193,907
Expenses
General government 4,651,889 4,264,141
Public safety 5,087,236 5,152,508
Parks and recreation 2,845,401 1,713,630
Public works 4,653,627 3,472,169
Community development 2,674,419 2,308,408
Total expenses 19,912,572 16,910,856
Change in net position 4,067,948 5,283,051
Transfers 1,223,434 - Beginning net position 44,716,437 38,209,952 Ending net position 48,784,385 44,716,437
Governmental Activities Change in Net Position
Government-wide revenues increased by $1,786,613. Taxes, capital grants and contributions and charges for services provide 78.7% of the overall revenue sources of the governmental activities. Taxes include property, transient occupancy, sales, business license and other taxes (transfer tax, Measure V and AB1290).

The largest increases in revenue were for Sales taxes which increased $1,066,808 to $6,572,790 due to increased sales tax revenue in the current fiscal year. Other general revenue increased by $890,725 to $1,636,653 compared to the prior year due to the receipt of development impact fees in the current year. 10 The table below is a visual representation of each revenue source for the fiscal year.

Government-wide expenses of all City programs increased by $3,001,716 (or 18% overall) to $19,912,572 for the fiscal year ended June 30, 2025. Expenses include adjustments for depreciation, longterm debt and pension costs. The net increase in expenses is spread across the City’s programs with a decrease in Public Safety. The decrease in expenditures in Public Safety is a result of staffing shortages within the LA County Sheriff’s Department, and not a reflection of the City’s commitment to Public Safety. Expenses in Parks increases $1,131,771 (from $1,713,630 to 2,845,401) as a result of the AJ Padelford Park Expansion Project, in which the City acquired residential properties for the purpose of expanding the Park acreage.

The table below is a visual representation of each program’s expenses for the fiscal year. 11 Financial Analysis of the City’s Funds
As noted earlier, the City of Artesia uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

Governmental funds. The focus of the City of Artesia’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City of Artesia’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for discretionary spending as this category of fund balance represents the portion of fund balance which has not yet been limited to use for a particular purpose by either and external party, the City itself, or a group or individual that has been delegated authority to assign resources for use for particular purposes by the City Council.

As of the end of the current fiscal year, the City of Artesia’s governmental funds reported combined ending fund balances of $27,278,524, an increase of $1,594,548 in comparison to the prior fiscal year. Of this amount, there is $7,265,147 unassigned net fund balance available for spending at the government's discretion. All remaining fund balance is nonspendable, restricted, committed or assigned to indicate that it is not available for new spending. Approximately 20% of this amount is committed to indicate that it is not available because it has committed for contingency reserves. Another 40% is restricted for specific uses. Approximately 13% of this amount is assigned, which indicate that these amounts are not available because they are intended for specific uses designated by the City Council. The remainder of the fund balance is nonspendable, as they reflect prepaid items. Three funds qualify as major funds under the GASB Statement No. 34, Basic Financial Statements – and Management Discussion and Analysis – for State and Local Governments, reporting criteria: the General Fund, Billboard Fund, and Capital Projects Fund.

The following is a summary of fund balances of the governmental funds for fiscal years 2024-2025:
2024 2025
unassigned $6,907,041 $7,265,147
Nonspendable Restricted Committed
Assigned $18,776,935 $20,013,377
Total $25,683,976 $27,278,524
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
General Fund. The General Fund is the chief operating fund of the City of Artesia. At the end of Fiscal Year June 30, 2025, the total fund balance was $15,431,681, with $107,140 non-spendable for prepaid items and leases, $5,516,877 to funding future commitments, and $2,092,370 assigned for specific projects. Comparing both total and unassigned fund balance ($7,715,294) to total fund expenditures is a 12 measure of the general fund’s liquidity. Unassigned fund balance represents 48% of the total general fund revenue ($16,028,194) and represents 53% of total general fund expenditures ($114,594,639).  The fund balance of the general fund increased by $1,154,486 during the fiscal year. The surplus of available resources over budgeted available resources was $1,120,266 during the fiscal year.

The Billboard Fund qualifies as a major fund in 2024-25. The fund balance of the Billboard Fund decreased by $96,073. The decrease was due to planned, budgeted expenditures of more than revenue for the fiscal year. The Fund was used for capital improvements to several structures at Artesia Park.

The Capital Projects Fund qualifies as a major fund in 2024-25. The fund balance of the Capital Projects Fund decreased by $665,878. The decrease was due to planned, budgeted expenditures of more than revenue for the fiscal year. Expenditures included capital improvements to the City Council Chambers, Historical District Recreational Trails, and infrastructure improvements.

General Fund Budgetary Highlights
In preparing the budget, the City attempts to estimate its revenues using realistic, but conservative, methods so as to budget its expenditure appropriations and activities in a prudent manner. As a result, the City Council adopts budget adjustments during the course of the fiscal year to reflect both changed priorities and availability of revenues to allow for the expansion of existing programs, if required.

There was a decrease between the original budget and the final amended budget for total charges to appropriations of $254,017, in anticipation of higher personnel, contract services, and unfunded liability expenditures. Actual amount available for appropriations were higher than the final budget by $423,256.

Differences between the final appropriations and actual expenditures totaled $717,230. Actual expenditures were less than budgeted in general government, public safety, public works and community development.

Capital Asset and Long-Term Liabilities
Capital assets. The City of Artesia’s investment in capital assets for its governmental activities as of June 30, 2025, amounts to $32,047,928 (net of accumulated depreciation). This investment in capital assets includes land, buildings, improvements, automobile equipment, office furniture and equipment, other equipment, and infrastructure. The following is a summary of capital assets (net of depreciation) as of June 30, 2025 and 2024:
13 2025 2024
Governmental activities
Land $ 10,501,951 $ 10,008,436
Buildings 1,868,396 747,870
Improvements other than buildings 1,975,087 1,257,398
Automobile equipment 308,047 454,211
Office furniture and equipment 9,982 12,214
Other equipment 436,473 201,404
Infrastructure 13,972,257 13,280,736
Construction in progress 2,975,735 3,871,532
Total governmental activities $ 32,047,928 $ 29,833,801 Capital Assets
(net of depreciation)
Total capital assets net of depreciation increased by $2,214,127 from the prior fiscal year. Major capital asset events during the fiscal year included the following:
 Construction in progress – several street projects were in process.  Several street improvements were added to public works infrastructure  Artesia Park improvements, including a new roof on the Community Center were added to parks buildings, improvements and equipment.

Additional information on the City’s capital assets can be found in Note 5 of the Notes to the Financial Statements.

Long-Term Liabilities
The following is a summary of the outstanding debt at June 30, 2025 and 2024:
2025 2024
Governmental activities
Compensated absences 379,235 357,698
Other post-employment benefits obligation (OPEB) 5,619,899 6,244,248 Net pension liability 4,860,148 4,884,987
Total governmental activities 10,859,282 11,486,933
Long-Term Liabilities
At the end of the fiscal year, the City had total long-term liabilities outstanding of $10,859,282. This includes compensated absences, other post-employment benefits and net pension liability. There was an decrease in long-term debt of $627,651 over the prior fiscal year.  Compensated absences liability increased $21,537 for accrued time off payable.  OPEB liability decreased $624,349 for future benefits payable.  Net pension liability decreased $24,839 for future retirement benefits payable.

Additional information on the City’s long-term debt and other long-term liabilities can be found in notes 6, 9 and 10 of the Notes to the Financial Statements.
14 Economic Factors and Next Year's Budget
Local governments throughout the State of California are challenged with funding increasing costs of operations with constrained resources. The City is continuing a priority of conservative fiscal management where an evaluation of expenses with potential reductions will be implemented for government efficiencies. Conversely, the City is actively pursuing other economic development programs to enhance the City’s revenue resource structure. The City maintains a conservative approach to budgeting revenues and expenditures. Management takes an active role in monitoring the application of the budget during the fiscal year to apply necessary changes to projected revenues as well as appropriated expenditures.

The budget for Fiscal Year 2024-25 was projected with a General Fund structural spending deficit of $11,056, or 7% over General Fund revenues. While the mid-year budget was adopted with this deficit, the City did end the fiscal year with a fund balance surplus of $1,154,486.

Requests for Information
This financial report is designed to provide a general overview of the City of Artesia’s finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Finance Department, ATTN: Jamie Murguia, Finance Manager, 18747 Clarkdale Avenue, Artesia, CA 90701.

City of Artesia
Statement of Net Position
June 30, 2025
Governmental
Activities

ASSETS AND DEFERRED OUTFLOWS
Cash and investments $ 26,348,600
Receivables:

Accounts 3,468,069
Loan 16,084
Leases 3,163,980
Interest 138,252
Prepaid items 80,645
Total current assets 33,215,630
Capital assets:

Nondepreciable assets 13,477,686
Depreciable assets, net 18,570,242
Total capital assets 32,047,928
Total assets 65,263,558

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows - Pension related 1,471,909
Deferred outflows - OPEB related 178,739
Total deferred outflows of resources 1,650,648

LIABILITIES AND DEFERRED INFLOWS OF RESOURCES
Accounts payable 2,014,725
Deposits payable 908,091
Noncurrent liabilities:

Other Postemployment benefit obligation 5,295,280
Net pension liability 4,860,148
Due within one year 421,264
Due in more than one year 282,590
Total liabilities 13,782,098

DEFERRED INFLOWS OF RESOURCES
Deferred inflows - Pension related 129,312
Deferred inflows - OPEB related 1,204,121
Deferred inflows - leases related 3,014,290
Total deferred inflows of resources 4,347,723

NET POSITION
Net investment in capital assets 32,047,928
Restricted for:

Public safety 1,615,073
Street projects 6,832,196
Housing 872,643
Other purposes 598,365
Total restricted 9,918,277
Unrestricted 6,818,180
Total net position $ 48,784,385
See Accompanying Notes to Basic Financial Statements.
15 City of Artesia
Statement of Activities
For the fiscal year ended June 30, 2025
Charges Operating Capital Total
for Grants and Grants and Program
Functions/Programs Expenses Services Contributions Contributions Revenues Primary government:

Governmental activities:

General government $ 4,651,889 $ 1,462,088 $ - $ 1,462,088 - $ Public safety 5,087,236 186,159 186,159
Parks and recreation 2,845,401 106,835 106,835
Public works 4,653,627 1,216,119 4,434,958 5,651,077
Community development 2,674,419 598,940 598,940
Total primary government $ 19,912,572 $ 2,167,863 $ 1,402,278 $ 4,434,958 $ 8,005,099 General revenues:

Taxes:

Property taxes, levied for general purposes
Transient occupancy taxes
Sales taxes
Business licenses taxes
Other taxes
Franchise fees
Use of money and property
Other
Total general revenues and transfers
Change in net position
Net position - beginning of fiscal year
Net position - end of fiscal year
See Accompanying Notes to Basic Financial Statements.

Program Revenues
16 Net (Expense) Revenue and
Changes in Net Position
Governmental
Activities
$ (3,189,801)
(4,901,077)
(2,738,566)
997,450
(2,075,479)
(11,907,473)
2,535,284
594,972
6,572,790
1,024,268
756,301
993,686
1,807,068
1,691,052
15,975,421
4,067,948
44,716,437
$ 48,784,385
17 FUND FINANCIAL STATEMENTS
Governmental Fund Financial Statements

GOVERNMENTAL FUND

FINANCIAL STATEMENTS
Generally accepted accounting principles (GMP) for state and local governments prescribe the following basic governmental fund financial statements:
• Balance Sheet
• Statement of Revenues, Expenditures, and Changes in Fund Balances The governmental fund financial statements include all the major individual governmental funds and the total of non-major funds of the City of Artesia. The governmental fund financial statements are prepared on the modified accrual basis. The major governmental funds of the City are as follows:

General Fund accounts for the revenues and expenditures used to carry out basic governmental activities of the City such as general government, public safety, parks and recreation, public works, and community development. Revenue isrecorded by source (e.g., taxes, licenses and permits, intergovernmental, charges for services and fines and forfeitures). General Fund expenditures are made primarily for current day-to-day operations and operating equipment. They are recorded by major functional classification and operating departments. This fund accounts for all financial transactions not properly accounted for in another fund.

Billboard accounts for City license fee on development agreement for 15 annual installments of double-sided outdoor advertising structure.

Capital Projects is a fund that accounts for funds received that have a broader discretionary use by the City Council for capital improvements.

Budgetary comparison schedule for the General fund and Billboard fund are included in the required supplementary section. Budgetary comparison schedules for the capital projects fund and individual nonmajor funds are located in the supplemental information section of the financial statements.

City of Artesia
Balance Sheet
Governmental Funds
June 30, 2025
Special Revenue
Fund
Capital Projects
Fund
Non-major Total
General Capital Governmental Governmental
Fund Billboard Projects Funds Funds
ASSETS
Cash and investments 14,484,595 $ 469,415 $ 845,287 $ 10,549,303 $ 26,348,600 $ Receivables:

Accounts 2,365,547 7,571 1,094,951 3,468,069
Loan 16,084 16,084
Leases 925,298 2,238,682 3,163,980
Interest 138,252 138,252
Prepaid items 80,645 80,645
Due from other funds 817,301 817,301
Total assets $ 2,708,097 18,811,638 $ 868,942 $ 11,644,254 $ 34,032,931 $

LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND

FUND BALANCES
Liabilities:

Accounts payable 1,634,958 $ 18 $ 11,306 $ 368,443 $ 2,014,725 $ Deposit payable 846,196 61,895 908,091
Due to other funds 817,301 817,301
Total liabilities 18 2,481,154 11,306 1,247,639 3,740,117 Deferred inflows of resources:

Leases 898,803 2,115,487 3,014,290
Total deferred inflows of resources 2,115,487 898,803 3,014,290 Fund balances:

Nonspendable:

Prepaid items 80,645 80,645
Leases 26,495 26,495
Restricted for:

Housing projects 787,217 787,217
Street projects 3,136,375 3,136,375
Transportation projects 2,622,221 2,622,221
Public works 1,534,482 1,534,482
Parks and recreation 592,592 1,176,899 1,769,491
Public safety 1,700,499 1,700,499
Committed to:

Contingency reserve 5,516,877 5,516,877
Assigned to:

CalPERS Rate Increase 100,609 100,609
Water District Consolidation Analysis 45,000 45,000
Sanitation District Consolidation Analysis 25,000 25,000 Preliminary Planning Projects 45,000 45,000
ADA Transition Plan 1,700 1,700
Pre Plan Improvement District 50,000 50,000
Organizational Development Plan 25,000 25,000
Economic Development 13,000 13,000
Artesia Towne Center Reserve 267,062 267,062
Public Service Center Construction 300,000 300,000
Community Development/Planning 145,000 145,000
Personnel/Labor Negotiations 130,000 130,000
City Facility Improvements 74,782 74,782
CERT Training 20,000 20,000
Council Chamber Phase II 125,000 125,000
Vehicle & Equipment Replacement 50,000 50,000
Specific Plan Development 20,000 20,000
Facility Deferred Maintenance 90,000 90,000
Risk Mitigation/Litigation 20,000 20,000
Street projects 200,000 857,636 1,057,636
CalPERS Net Pension Unfunded Liability 165,609 165,609
CalPERS Net Retiree Health Unfunded Liability 179,608 179,608 Unassigned 7,715,294 (561,078) 7,154,216
Total fund balances 592,592 15,431,681 857,636 10,396,615 27,278,524 Total liabilities, deferred inflows of
resources, and fund balances $ 2,708,097 18,811,638 $ 868,942 $ 11,644,254 $ 34,032,931 $ See Accompanying Notes to Basic Financial Statements.
19 City of Artesia
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2025
Total Fund Balances - Total Governmental Funds $ 27,278,524 Amounts reported for governmental activities in the Statement of Net Position were different because:

Capital assets used in governmental activities are not current financial resources. Therefore, they are not reported in the governmental funds. Nondepreciable assets and depreciable assets net of accumulated depreciation totals: 32,047,928 Long-term liabilities and OPEB were not due and payable in the current period. Therefore, they were not reported in the governmental funds.

Compensated absences (379,235)
Other Postemployment benefits payable (OPEB) (5,619,899) Deferred outflows of resources - OPEB Related 178,739
Deferred inflows of resources - OPEB Related (1,204,121) Total long-term liabilities and OPEB (7,024,516)
Pension related debt applicable to the City governmental activities is not due and payable in the current period and accordingly is not reported as a fund liability. Deferred outflows of resources and deferred inflows of resources related to pensions are only reported in the Statement of Net Position as the changes in these amounts affects only the government-wide statements for governmental activities.

Deferred outflows of resources 1,471,909
Deferred inflows of resources (129,312)
Net Pension liability (4,860,148)
Total pension related items (3,517,551)
Net Position of Governmental Activities $ 48,784,385
See Accompanying Notes to the Basic Financial Statements. 20 City of Artesia
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the fiscal year ended June 30, 2025
Capital Projects
Fund
Non-major Total
General Capital Governmental Governmental
Fund Billboard Projects Funds Funds
REVENUES:

Taxes $ 11,483,615 $ - $ - $ 1,216,119 $ 12,699,734
Licenses and permits 1,037,486 1,037,486
Intergovernmental 123,672 714,637 3,782,808 4,621,117
Charges for services 2,111,083 12,980 2,124,063
Use of money and property 945,286 221,990 3,784 636,008 1,807,068 Fines and forfeitures 134,509 134,509
Other revenues 192,543 20,230 1,343,770 1,556,543
Total revenues 16,028,194 221,990 751,631 6,978,705 23,980,520 EXPENDITURES:

Current:

General government 4,891,848 4,891,848
Public safety 5,016,329 59,898 5,076,227
Parks and recreation 1,293,543 250,000 1,012,975 2,556,518 Public works 994,589 352,382 2,288,196 3,635,167
Community development 2,253,586 68,063 352,770 2,674,419 Capital outlay 144,744 1,065,127 2,341,922 3,551,793
Total expenditures 14,594,639 318,063 1,417,509 6,055,761 22,385,972

REVENUES OVER
(UNDER) EXPENDITURES 1,433,555 (96,073) (665,878) 922,944 1,594,548 OTHER FINANCING SOURCES (USES):

Transfers in 304,891 583,960 888,851
Transfers out (583,960) (304,891) (888,851)
Total other financing sources (uses) (279,069) 279,069
NET CHANGE IN FUND BALANCES 1,154,486 (96,073) (665,878) 1,202,013 1,594,548 FUND BALANCES:

Beginning of fiscal year 14,277,195 688,665 1,523,514 9,194,602 25,683,976 End of fiscal year $ 15,431,681 $ 592,592 $ 857,636 $ 10,396,615 $ 27,278,524 See Accompanying Notes to Basic Financial Statements.

Special Revenue
Fund
21 City of Artesia
Reconciliation of the Governmental Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities and Changes in Net Position For the fiscal year ended June 30, 2025
Net Change in Fund Balances - Total Governmental Funds $ 1,594,548 Amounts reported for governmental activities in the Statement of Activities and Changes in Net Position were different because:

Governmental funds reported capital outlay as expenditures. However, in the Government-Wide Statement of Activities and Changes in Net Position, the cost of those assets are allocated over the estimated useful lives as depreciation expense. This was the amount of capital assets recorded in the current period:

Capital outlay 3,551,793
Depreciation expense on capital assets is reported in the Government-Wide Statement of Activities and Changes in Net Position, but it does not require the use of current financial resources. Therefore, depreciation expense is not reported as an expenditure in the governmental funds. (1,298,767)
Compensated absences and other postemployment benefits are reported in the Government-Wide Statement of Activities and Changes in Net Position, but they do not require the use of current financial resources. Therefore, they are not reported as an expenditure in the governmental funds.

Change in compensated absences (21,537)
Change in other postemployment benefits and related deferred outflows and inflows 477,771 Pension expense reported in the governmental funds includes the annual required contributions. In the Statement of Activities, pension expense includes the change in the net pension liability and related change in pension amounts for deferred outflows of resources and deferred inflows of resources. (196,961) Change in Net Position of Governmental Activities $ 4,067,948 See Accompanying Notes to the Basic Financial Statements. 22 City of Artesia
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2025
Successor Agency
to the Artesia
Redevelopment
Agency
Private Purpose
Trust Fund
ASSETS
Cash and investments 626,432 $
Total assets 626,432

DEFERRED INFLOW OF RESOURCES
Deferred loss on refunding 168,516
Total deferred inflow of resources 168,516

LIABILITIES
Accrued interest payable 43,157
Long-term debt:

Due within one year 442,140
Due in more than one year 11,160,380
Total liabilities 11,645,677
NET POSITION:

Restricted for individuals, organizations and other governments (10,850,729) $ See accompanying Notes to Basic Financial Statements.
23 Successor Agency
to the Artesia
Redevelopment
Agency
Private Purpose
Trust Fund
Additions:

Property taxes $ 990,511
Use of money and property 1,191
Total additions 991,702
Deductions:

Community development 6,800
Administrative expenses 35,176
Interest and fiscal charges 545,078
Total deductions 587,054
Change in net position 404,648
Net position - beginning (11,255,377)
Net position - ending $ (10,850,729)
See accompanying Notes to Basic Financial Statements.

CITY OF ARTESIA
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the fiscal year ended June 30, 2025
24 City of Artesia
Notes to Basic Financial Statements
June 30, 2025
25 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The basic financial statements of the City of Artesia, California (City), have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) as applied to governmental agencies. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the City’s accounting policies are described below.

A. Description of Reporting Entity
The City was incorporated on May 29, 1959, under the laws of the State of California and enjoys all the rights and privileges applicable to a General Law City. The City is governed by an elected five-member council. The accompanying financial statements present the City and its component units defined as legally separate entities that meet any one of the following tests:
 The City appoints the voting majority of the board of the component unit and:
o is able to impose its will on the component unit and/or o is in a relationship of financial benefit or burden with the component unit.  The component unit is fiscally dependent upon the City.  The financial statements of the City would be misleading if data from the component unit were omitted.

Artesia Housing Authority - The five members of the City Council serve as the governing body of the Housing Authority and exercise all rights, powers, duties, and privileges of the Housing Authority. The Mayor serves as the Chairperson of the Housing Authority. The purpose of the Housing Authority is to prepare and execute plans for housing projects within the City. The activity of this blended component unit is reported in the Housing Authority Special Revenue Fund.

Artesia Parking Authority - The five members of the City Council serve as the governing body of the Parking Authority and exercise all rights, powers, duties and privileges of the Parking Authority. The Mayor serves as the Chairperson of the Parking Authority. The purpose of the Parking Authority is to prepare and execute plans for parking projects within the City. The activity of this blended component unit is reported in the Paid Parking Special Revenue Fund.

Separate financial statements are not prepared for the Housing Authority or the Parking Authority. These component units are included in the primary government because of the significance of their financial or operational relationship and they have the same governing body as the City.

B. Basis of Accounting and Measurement Focus
The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, deferred outflows of resources, liabilities, deferred inflows of resources, fund equity, revenues, and expenditures or expenses. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.

City of Artesia
Notes to Basic Financial Statements
June 30, 2025
26 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of Accounting and Measurement Focus, Continued The City’s Government-Wide Financial Statements include a Statement of Net Position and a Statement of Activities and Changes in Net Position. These statements present summaries of governmental activities for the City. Governmental activities, which are normally supported by taxes and intergovernmental revenues, are reported separately from the business-type activity, which relies to a significant extent on fees and charges for support. Fiduciary activities of the City are not included in these statements.

Government-Wide Financial Statements
These financial statements are presented on an ”economic resources” measurement focus and the accrual basis of accounting. Accordingly, all the City’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources, including capital assets, as well as infrastructure assets, and long-term liabilities, are included 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. The Statement of Activities and Changes in Net Position demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Certain indirect costs are included in the program expenses reported for specific functions.

Certain types of transactions are reported as program revenues for the City in three categories:
 Charges for services to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function.  Operating grants and contributions that are restricted to meeting the operational requirements of a given function.
 Capital grants and contributions that are restricted to meeting the capital requirements of a given function.

Certain eliminations have been made in regard to interfund activities, payables, and receivables. All internal balances in the Statement of Net Position have been eliminated, including due to/from other funds and transfers in/out.

Governmental Funds Financial Statements
Governmental Funds Financial Statements include a Balance Sheet and a Statement of Revenues, Expenditures, and Changes in Fund Balances for all major governmental funds and non-major governmental funds aggregated. An accompanying schedule is presented to reconcile and explain the differences in 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.

City of Artesia
Notes to Basic Financial Statements
June 30, 2025
27 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of Accounting and Measurement Focus, Continued Governmental Funds Financial Statements, Continued
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, deferred outflows of resources, current liabilities, and deferred inflows of resources are included on the Balance Sheet. The Statement of Revenues, Expenditures, and Changes in Fund Balances presents increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net fund balance. 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.

Revenues are recorded when received in cash, except that revenues subject to accrual received soon enough after fiscal year-end such that they are available to finance expenditures of the current period (generally 90 days after fiscal year-end) are recognized when due. The primary revenue sources, which have been treated as susceptible to accrual by the City, are property tax, sales tax, intergovernmental revenues, and other taxes.

Expenditures are recorded in the accounting period in which the related fund liability is incurred.

Unavailable revenues arise when potential revenues do not meet both the “measurable” and “available” criteria for recognition in the current period. In subsequent periods, when both revenue recognition criteria are met, the unavailable revenue is removed from the Balance Sheet and revenue is recognized. Unearned revenues arise when the government receives resources before it has a legal claim to them, as when grant monies are received prior to incurring qualifying expenditures. In subsequent periods, when the government has a legal claim to the resources, the unearned revenue is removed from the Balance Sheet and revenue is recognized.

The reconciliations of the Fund Financial Statements to the Government-Wide Financial Statements are provided to explain the differences between the “economic resources” and “current financial resources” basis of accounting.

Fiduciary Funds Financial Statements
Fiduciary Fund Financial Statements include a Statement of Fiduciary Net Position and a Statement of Changes in Fiduciary Net Position. The City's fiduciary fund represents a private purpose trust fund. The private purpose trust fund is reported using the “economic resources” measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place.

The City reports the following major governmental funds:
 The General Fund is the City’s primary operating fund. It accounts for all financial resources of the general government except those required to be accounted for in another fund.  The Billboard Special Revenue Fund’s primary function is to account for funds received for billboard rentals and to be utilized for parks and recreation programs for at-risk youth.  The Capital Projects Capital Projects Fund’s primary function is to account for funds received that have a broader discretionary use by the City Council for capital improvements.

City of Artesia
Notes to Basic Financial Statements
June 30, 2025
28 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of Accounting and Measurement Focus, Continued The City also reports the following funds:
 The Special Revenue Funds are used to account for the revenues derived from specific revenue sources, which are usually required by law or administrative regulation to be accounted for in separate funds.  The Fiduciary Fund of the Successor Agency to the Artesia Redevelopment Agency is held as a Private Purpose Trust Fund, which is used to account for activities of the Successor Agency.

C. Implementation of New Accounting Pronouncements
Implementation of New Accounting Pronouncements
GASB Statement No. 101, Compensated Absences
This Statement requires that liabilities for compensated absences be recognized for (1) leave that has not been used and (2) leave that has been used but not yet paid in cash or settled through noncash means. A liability should be recognized for leave that has not been used if (a) the leave is attributable to services already rendered, (b) the leave accumulates, and (c) the leave is more likely than not to be used for time off or otherwise paid in cash or settled through noncash means. Leave is attributable to services already rendered when an employee has performed the services required to earn the leave.

The implementation of this Statement did not have a financial impact on the City for the fiscal year ended June 30, 2025.

The provisions of Statement Number 102 “Certain Risk Disclosures” are effective for fiscal year ended June 30, 2025. The implementation of this Statement did not have a financial impact on the City for the fiscal year ended June 30, 2025.

Upcoming Accounting and Reporting Changes
GASB Statements listed below will be implemented in future financial statements.

The provisions of Statement Number 103 “Financial Reporting Model Improvements” are effective for fiscal years beginning after June 15, 2025.

The provisions of Statement No. 104 “Disclosure of Certain Capital Assets” are effective for fiscal years beginning after June 15, 2025.

The provisions of Statement No. 105 “Subsequent Events” are effective for fiscal years beginning after June 15, 2026.

City of Artesia
Notes to Basic Financial Statements
June 30, 2025
29 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued D. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Net Position, Equity, or Fund Balance
Cash and Investments
The City's cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition.

Investments for the City, as well as for its component units, are reported at fair value. The Local Agency Investment Fund (LAIF) operates in accordance with appropriate State laws and regulations. The reported value of the pool is the same as the fair value of the pool shares.

Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/from other funds" or "advances to/from other funds". All account and property tax receivables are shown net of an allowance for uncollectible. Property tax revenue is recognized in the fiscal year for which the taxes have been levied providing they become available. Available means then due, or past due, and receivable within the current period and collected within the current period or expected to be collected soon enough thereafter (not to exceed 90 days) to be used to pay liabilities of the current period.

Property Taxes
The County of Los Angeles collects property taxes for the City. Tax liens attach annually on the first day in January preceding the fiscal year for which the taxes are levied. The tax levy covers the fiscal period July 1 to June 30. All secured personal property taxes and one-half of the taxes on real property are due November 1; the second installment is due February 1. All taxes are delinquent, if unpaid, on December 10 and April 10, respectively. Unsecured personal property taxes become due on the first of March each fiscal year and are delinquent on August 31.

Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. The City uses the consumption method to account for these costs, whereby they are recorded as an asset when paid and recognized as an expenditure in the period in which the benefit is utilized.

Capital Assets
Capital assets, which include property, buildings, vehicles, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the governmental activities’ column in the governmentwide financial statements. Capital assets, other than infrastructure assets, are defined by the City as assets with an initial individual cost of more than $5,000 and an estimated useful life in excess of one year. Infrastructure assets have a capitalization threshold of $5,000. Purchased or constructed capital assets are recorded at historical cost or estimated historical cost. Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are reported at acquisition value.

City of Artesia
Notes to Basic Financial Statements
June 30, 2025
30 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued D. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Net Position, Equity, or Fund Balance, Continued
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized.

Major outlays for capital assets and improvements are capitalized as projects are constructed.

Capital assets are depreciated using the straight-line method over the following estimated useful lives:

Buildings 50 years
Improvements other than buildings 15 years
Vehicles and equipment 3 - 10 years
Infrastructure 25 years
Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to future periods and so will not be recognized as an outflow of resources (expense/expenditure) until that time. The City has two items that qualify for reporting in this category. These items are the deferred outflow related to pensions and OPEB. These amounts are equal to employer contributions made after the measurement date of the net pension liability and any other deviance from actuarially determined assumptions that are to be amortized relating to the net pension liability or OPEB.

In addition to liabilities, the statement of net position and the governmental funds balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to future periods and will not be recognized as an inflow of resources (revenue) until that time. The City has three items that qualify for reporting in this category. The first item is unavailable revenues, which is reported only in the governmental funds balance sheet. Governmental funds report unavailable revenues from two sources: taxes and grants.

These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. The second item is a deferred inflow related to pensions resulting from the difference in projected and actual earnings on investments of the pension plan fiduciary net position. This amount is amortized over five years. The third item is a deferred inflow related to pensions for the changes in proportion and differences between employer contributions and the proportionate share of contributions. This amount is amortized over a closed period equal to the average of the expected remaining services lives of all employees that are provided with pensions through the Plans determined as of June 30, 2023 (the beginning of the measurement period ended June 30, 2024), which is 3.8 years.

The City also recognizes deferred inflow of resources pursuant to GASB Statement No. 87 regarding leases receivable.

City of Artesia
Notes to Basic Financial Statements
June 30, 2025
31 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued D. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Net Position, Equity, or Fund Balance, Continued
Compensated Absences
It is the City’s policy to permit employees to accumulate earned but unused vacation and sick pay benefits.

Vacation pay is payable to employees at the time a vacation is taken or upon termination of employment.

Normally, an employee cannot accrue more than 320 hours of vacation time. Sick leave is payable when an employee is unable to work because of illness. Normally, an employee cannot accrue more than 400 hours of sick leave. Upon termination, an employee will be paid for any unused vacation based upon 100% of the current wage rate in effect. Employees hired prior to April 30, 2015, will be paid 50% of unused sick leave based upon 100% of the current wage in effect for sick leave earned after June 30, 2015. They will be paid 100% for sick leave accrued prior to June 30, 2015, and not subsequently used. Employees hired on or after May 1, 2015, will not be paid for unused sick leave upon termination, with the exception of unrepresented management.

All vacation and sick leave pay is accrued when incurred in the Government-Wide Financial Statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements. Compensated absences are paid, if matured, out of the General Fund.

Long-Term Obligations
In the Government-Wide Financial Statements, long-term debt and other long-term obligations are reported as liabilities in the governmental activities statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable bond premium or discount.

In the fund financial statements, governmental fund types recognize bond premiums, discounts, and issuance costs during the current period. The face amount of debt issued is reported as other financing sources.

Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

Net Position
In the Government-Wide Financial Statements and the Proprietary Fund Statement of Net Position, net position is classified in the following categories:

Net Investment in Capital Assets - This amount consists of capital assets net of accumulated depreciation and reduced by outstanding debt that attributed to the acquisition, construction, or improvement of the assets.

Restricted Net Position - This amount is restricted by enabling legislation, external creditors, grantors, contributors, laws or regulations of other governments.

Unrestricted Net Position - This amount is all net position that does not meet the definition of “net investment in capital assets” or “restricted net position”.

City of Artesia
Notes to Basic Financial Statements
June 30, 2025
32 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued D. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Net Position, Equity, or Fund Balance, Continued
Net Position Flow Assumptions
Sometimes the City will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted - net position and unrestricted - net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied.

It is the City’s practice to consider restricted - net position to have been depleted before unrestricted - net position is applied.

Fund Balances
In the Governmental Fund Financial Statements, fund balances are classified in the following categories:

Nonspendable - Items that cannot be spent because they are not in spendable form, such as prepaid items and inventories, items that are legally or contractually required to be maintained intact, such as principal of an endowment or revolving loan funds.

Restricted - Restricted fund balances encompass the portion of net fund resources subject to externally enforceable legal restrictions. This includes externally imposed restrictions by creditors, such as through debt covenants, grantors, contributors, laws, or regulations of other governments, as well as restrictions imposed by law through constitutional provisions or enabling legislation.

Committed - Committed fund balances encompass the portion of net fund resources, the use of which is constrained by limitations that the government imposes upon itself at its highest level of decision making, normally the governing body, and that remain binding unless removed in the same manner. The City Council is considered the highest authority for the City and the adoption of a formal resolution is required to establish a fund balance commitment.

The City has a contingency reserve to address major unforeseen expenditures such as damage to facilities or infrastructure. The reserve was established by the City Council through resolution 16-2606 and requires a three-fifths vote to expend the funds. The balance of this reserve as of June 30, 2025, was $5,516,877.

Assigned - Assigned fund balances represent amounts constrained by the City’s intent to be used for specific purposes but are neither restricted nor committed. The City Council has authorized the City Manager to assign amounts for specific purposes pursuant to the City’s adopted GASB 54 Fund Balance Policy.

Unassigned - This category is for any balances that have no restrictions placed upon them. The general fund is the only fund that reports a positive unassigned fund balance amount.

City of Artesia
Notes to Basic Financial Statements
June 30, 2025
33 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued D. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Net Position, Equity, or Fund Balance, Continued
Governmental Fund Balance
When expenditures are incurred for purposes for which all restricted, committed, assigned, and unassigned fund balances are available, the City’s policy is to apply in the following order, except for instances wherein an ordinance specifies the fund balance:
 Restricted
 Committed
 Assigned
 Unassigned
Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) plans (Plans) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

Leases Receivable
GASB issued Statement No. 87 “Leases” to better meet the information needs of financial statements users by improving accounting and financial reporting for leases by governments. This statement increases the usefulness of governments’ financial statements by requiring recognition of certain lease asset and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financing of the right to use an underlying asset. Under this Statement a lessee is required to recognize a lease liability and an intangible right-to-use asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about governments’ leasing activities. Implementation of GASB Statement No. 87 resulted in the City recognizing 3 property leases that are recognized under GASB Statement No. 87.

E. Use of Estimates
The preparation of financial statements in accordance with US GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities. In addition, estimates affect the reported amount of expenses. Actual results could differ from these estimates and assumptions.

City of Artesia
Notes to Basic Financial Statements
June 30, 2025
34 2. CASH AND INVESTMENTS
As of June 30, 2025, cash and investments were reported in the accompanying financial statements as follows:

Cash and investments on June 30, 2025, consisted of the following:

Investments Authorized by the California Government Code and the City’s Investment Policy The City's Investment Policy is reviewed and adopted by the City Council each fiscal year. Regarding allowable investment types, the investment policy is more conservative and restrictive than the investment vehicles authorized by Section 53600.5 of the California Government Code. Investment vehicles not specifically mentioned in the City's investment policy, are not authorized unless the policy is amended by the City Council or is approved as part of the provisions of the bond indentures. Investments are limited to:
* - Excluding amounts held by bond trustees that are not subject to California Government Code restrictions.

The City's investment policy does not contain any specific provisions intended to limit the City's exposure to interest rate risk and concentration of credit risk.

Maximum Maximum
Maximum Percentage Investment
Authorized Investment Type Maturity of Portfolio* in One Issuer United States Treasury Notes 5 years None None
United States Government Sponsored
Agency Securities:

Cash and investments 26,348,600 $ 626,432 $ 26,975,032 $ Total cash and investments 26,348,600 $ 626,432 $ 26,975,032 $ Cash on hand (petty cash) 500 $
Demand deposits 422,752 Investments 26,551,780 Total cash and investments 26,975,032 $ City of Artesia
Notes to Basic Financial Statements
June 30, 2025
35 2. CASH AND INVESTMENTS, Continued
Investments Authorized by Debt Agreements
Investments of debt proceeds held by bond trustees are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy. The table below identifies the investment types that are authorized for investments held by bond trustees. The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk.

N/A - Not Applicable
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 investment, 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-term 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.

Treasury Bills 1 year None None
Treasury Bonds 5 years None None
Certificates of Deposit 5 years 30% None
Passbook Savings Accounts N/A None None
Local Agency Investment (LAIF) N/A None $75,000,000
California Asset Management Program (CAMP) N/A None None California CLASS JPA N/A None None
* - Excluding amounts held by bond trustees that are not subject to California Government Code restrictions. 12 Months 13-24 25-60 More than
Investment Type or Less Months Months 60 Months Total
Local Agency Investment Fund (LAIF) 7,119,173 $ - $ - $ - $ 7,119,173 $ U.S. Treasury Notes 1,486,545 1,360,101 2,113,262 4,959,908 CLASS Investment Pool 6,990,840 6,990,840
CAMP Investment Pool 7,481,859 7,481,859
Total 23,078,417 $ 1,360,101 $ 2,113,262 $ - $ 26,551,780 $ Remaining Maturity (in Months)
City of Artesia
Notes to Basic Financial Statements
June 30, 2025
36 2. CASH AND INVESTMENTS, Continued
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment 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 required by (where applicable) the California Government Code, the City’s investment policy, or debt agreements, and the actual rating, by Standards and Poor, as of fiscal year end for each investment type:

Concentration of Credit Risk
The City’s investment policy imposes restrictions for certain types of investments with any one issuer; however, external investment pools are excluded from this requirement. On June 30, 2025, the City’s investments were with LAIF, CAMP, and CLASS which are exempt from this requirement.

Custodial Credit Risk
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 its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The fair value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. On June 30, 2025, the City deposits (bank balances) were insured by the Federal Deposit Insurance Corporation or collateralized as required under California Law.

Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which is recorded on an amortized cost basis.

Minimum
Total as of Legal Not
Investment Type June 30, 2025 Rating AA Rated
Local Agency Investment Fund (LAIF) 7,119,173 $ N/A - $ 7,119,173 $ U.S. Treasury Notes 4,959,908 N/A 4,959,908 CLASS Investment Pool 6,990,840 N/A 6,990,840 CAMP Investment Pool 7,481,859 N/A 7,481,859 $ - 26,551,780 $ 21,591,872 $
City of Artesia
Notes to Basic Financial Statements
June 30, 2025
37 2. CASH AND INVESTMENTS, Continued
CAMP Investment Pool
The City is a voluntary participant in the California Asset Management Program (CAMP), a public joint powers authority formed to pool and invest the funds of public agencies. Cal-Trust invests in fixed income securities eligible for investment pursuant to California Government Code Sections 53601 and 53635.

Investment guidelines adopted by the board of Trustees may further restrict the types of investments that are held by the Trust. Leveraging within the Trust’s portfolios is prohibited. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the Authority’s prorata share of the fair value provided by CAMP for the entire CAMP portfolio (in relation to the amortized cost of that portfolio).

CLASS Investment Pool
The City is a voluntary participant in the California Cooperative Liquid Assets Securities System (CLASS), a public joint powers authority formed to pool and invest the funds of public agencies. CLASS invests in fixed income securities eligible for investment pursuant to California Government Code Sections 53601 and 53635.

Investment guidelines adopted by the board of Trustees may further restrict the types of investments that are held by the Trust. Leveraging within the Trust’s portfolios is prohibited. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the Authority’s prorata share of the fair value provided by CLASS for the entire CLASS portfolio (in relation to the amortized cost of that portfolio).

Fair Value Measurements
The City categorizes its fair value measurements within the fair value hierarchy establish by accounting principles generally accepted in the United States of America. These principles recognize a three tiered fair value hierarchy as follows: Level 1 – Investments reflect prices quoted in active markets; Level 2 – Investments reflect prices that are based on similar observable asset either directly or indirectly, which may include inputs in markets that are not considered active; and Level 3 – Investments reflect prices based upon unobservable sources. The City’s investment in the State Investment Pool (LAIF), CAMP, and CLASS are exempt from fair value measurements disclosure.

3. LOAN RECEIVABLE
In November 1989, the City entered into an agreement with the Southern California Water Company for the installation of a domestic water system in an Artesia service area. As part of this agreement, the City loaned the Southern California Water Company $139,925 with no interest to be repaid over 40 years. On June 30, 2025, the outstanding loan receivable is $16,084.

4. LEASES RECEIVABLE
The City has 3 lease agreements in place as of June 30, 2025. Revenue recognition is in accordance with GASB Statement No. 87. Summarized information for each lease is as follows:

Crown Castle Inc.

In February 2006, the City entered into a lease with Crown Castle Inc. for property at 17203 Corby Avenue to be utilized as telecommunication infrastructure. The lease term extends through the fiscal year ended June 30, 2036. Rent payments are $2,129 a month increasing by CPI every 5 years year under the terms of the lease.

City of Artesia
Notes to Basic Financial Statements
June 30, 2025
38 4. LEASES RECEIVABLE (CONTINUED)
Verizon Wireless
In September 2020, the City entered into a lease with Verizon for property at 18747 Clarkdale Avenue to be utilized as telecommunication infrastructure. The lease term extends through the fiscal year ended June 30, 2045. Rent payments are $3,060 a month increasing by CPI every year under the terms of the lease.

Outfront Media LLC
In August 2016, the City entered into a lease with Outfront Media VW Communications, LLC. for property to be utilized for outdoor advertising. The lease term extends through the fiscal year ended June 30, 2038. Rent payments are $13,750 a month and increase to $16,638 a month by the end of the lease period under the terms of the lease.

5. CAPITAL ASSETS
Capital asset activity for the fiscal year ended June 30, 2025, is as follows:

Balance as of Balance as of
June 30, 2024 Additions Deletions Transfers June 30, 2025 Governmental Activities
Nondepreciable capital assets
Land 10,008,436 $ 493,515 $ - $ - $ 10,501,951 $
Construction in progress 3,871,532 2,686,223 (3,582,020) 2,975,735 Total nondepreciable capital assets 13,879,968 3,179,738 (3,582,020) 13,477,686 Depreciable capital assets Buildings 1,841,797 21,710 1,125,981 2,989,488 Improvements other than buildings 2,344,220 821,986 3,166,206 Automobile equipment 1,518,588 1,518,588
Office furniture and equipment 322,795 322,795 Other equipment 1,158,669 311,446 1,470,115 Infrastructure 23,283,362 1,634,053 24,917,415 Total depreciable capital assets 30,469,431 333,156 3,582,020 34,384,607 Less accumulated depreciation
Buildings (1,093,927) (27,165) (1,121,092) Improvements other than buildings (1,086,822) (104,297) (1,191,119) Automobile equipment (1,064,377) (146,164) (1,210,541)
Office furniture and equipment (310,581) (2,232) (312,813) Other equipment (957,265) (76,377) (1,033,642) Infrastructure (10,002,626) (942,532) (10,945,158) Total accumulated depreciation (14,515,598) (1,298,767) (15,814,365) Net depreciable capital assets 15,953,833 (965,611) 3,582,020 18,570,242 Net capital assets 29,833,801 $ 2,214,127 $ - $ - $ 32,047,928 $ City of Artesia
Notes to Basic Financial Statements
June 30, 2025
39 5. CAPITAL ASSETS, Continued
Depreciation expense was charged to functions/programs of the primary government as follows:

6. LONG-TERM LIABILITIES
The following is a schedule of changes in long-term liabilities of the City for the fiscal year ended June 30, 2025:

Compensated Absences
The compensated absences payable has been accrued for governmental activities on the Government-Wide Financial Statements. Typically, the General Fund has been used to liquidate the liability for compensated absences. There is no fixed payment schedule to pay these liabilities. The total amount of compensated absences payable on June 30, 2025, was $379,235.

7. INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS
The composition of interfund balances as of June 30, 2025, is as follows:

Due To / Due From Other Funds
On June 30, 2025, the City had the following due to/from other funds:

The above interfund balances resulted from temporary reclassifications made on June 30, 2025, to cover cash shortfalls.

General government 19,314 $
Public safety 11,009 Parks and recreation 288,883 Public works 979,561 Total depreciation expense - governmental activities 1,298,767 $ Balance at Balance at Due Within
June 30, 2024 Additions Repayments June 30, 2025 One Year Governmental Activities:

Compensated absences 357,698 $ 99,128 $ (77,591) $ 379,235 $ 96,645 $ Total 357,698 $ 99,128 $ (77,591) $ 379,235 $ 96,645 $
Due To (payable) Due From (receivable) Amount
Non-major Governmental Funds General Fund 817,301 $
$ 817,301
City of Artesia
Notes to Basic Financial Statements
June 30, 2025
40 7. INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS (CONTINUED) Interfund Transfers
Transfers to and from the General Fund are to offset expenditures made in the General Fund for the non-major special revenue funds and vice versa. Transfer from the General Fund to the Paid Parking special revenue fund was to establish the Paid Parking special revenue fund.

8. OTHER REQUIRED INDIVIDUAL FUND DISCLOSURES
Deficit Fund Balance
The Special Revenue Funds with deficit fund balances will be reimbursed in future fiscal years for deficits incurred as part of operations from future revenues if available or the General Fund.

Excess of Expenditures over Appropriations
The following funds had expenditures over final appropriations during the fiscal year ended June 30, 2025.

Transfers Out Transfers In Amount
General Fund Artesia Lighting District 64,635 $
General Fund Paid Parking 519,325 Non-major Governmental Funds General Fund 304,891 $ 888,851
Non-Major Special Revenue Fund:

State Gas Tax (110,931) $
Community Development Block Grant (27,727)
Clean Air Bus Grant (10,548)
Metro TOD 4 (59,616)
Cal Fire Urban Grant (79,738)
California Natural Resources Grant (289,004) Budgeted Actual Excess Expenditures Amounts Amounts Over Appropriations
Non-major Funds:

Gas Tax 592,239 $ 607,179 $ (14,940) $
Parks and Recreation Grants 726,224 835,468 (109,244) Measure W 344,640 407,094 (62,454) Artesia Lighting District 202,631 236,019 (33,388) Housing Authority 36,049 198,018 (161,969)
City of Artesia
Notes to Basic Financial Statements
June 30, 2025
41 9. RETIREMENT PLAN
A. General Information about the Pension Plan
Plan Descriptions
All qualified permanent and probationary employees are eligible to participate in the City’s Miscellaneous Employee Pension Plan, cost-sharing multiple employer defined benefit pension plan administered by the California Public Employees’ Retirement System (CalPERS). Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS’ website.

Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.

The Plans’ provisions and benefits in effect on June 30, 2025, are summarized as follows:

Contributions
Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the fiscal year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

Miscellaneous
Hire date
Prior to January 1,
2013
On or After
January 1, 2013
Benefit formula 2% at 60 2% at 62
Benefit vesting schedule 5 years of service 5 years of service Benefit payments Monthly for life Monthly for life
Retirement age 50-63 52-67
Monthly benefits, as a % of eligible compensation 1.092% to 2.418% 1.0% to 2.5% Required employee contribution rates 7% 6.25%
Required employer contribution rates 8.74% 6.25%
City of Artesia
Notes to Basic Financial Statements
June 30, 2025
42 9. RETIREMENT PLAN, Continued
B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions As of June 30, 2025, the City reported net pension liabilities for its proportionate shares of the net pension liability of the City Miscellaneous Plan as follows:

The City’s net pension liability for its Plan is measured as the proportionate share of the net pension liability. The net pension liability of the Plan is measured as of June 30, 2024, and the total pension liability for the Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2023, rolled forward to June 30, 2024, using standard update procedures. The City’s proportionate share of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plan relative to the projected contributions of all participating employers, actuarially determined.

The City’s proportionate share of the net pension liability for the Plan as of June 30, 2023 and 2024 were as follows:

For the fiscal year ended June 30, 2025, the City recognized pension expense of $565,987. On June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Proportionate
Share of Net
Pension Liability
$ 4,860,148
City Miscellaneous
Plan
Proportion - June 30, 2023 0.09769%
Proportion - June 30, 2024 0.10049%
Change - Increase (Decrease) 0.00280%
Deferred Deferred
Outflows of Inflows of
Resources Resources
Changes in Assumptions $ 124,916 - $
Pension contributions subsequent to measurement date 643,371 Net differences between projected and actual earnings
on pension plan investments 279,793
Differences based on actual experience 403,808
Differences between actual vs proportionate contribution (106,477) Adjustment due to differences in proportions 20,021 (22,835) Total $ (129,312) 1,471,909 $
City of Artesia
Notes to Basic Financial Statements
June 30, 2025
43 9. RETIREMENT PLAN, Continued
B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions, Continued
$643,371 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the fiscal year ending June 30, 2026. Other amounts reported as deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Actuarial Assumptions
The total pension liabilities in the June 30, 2023, actuarial valuations were determined using the following actuarial assumptions:
(1) Depending on age, service, and type of employment
(2) Net of pension plan investment expenses, including inflation Discount Rate
The discount rate used to measure the total pension liability was 6.90% for all plans. The projection of cash flows used to determine the discount rate assumed the contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

Fiscal Year Ended
2026 178,265 $
2027 612,015 2028 4,826 2029 (95,880) Totals 699,226 $
Miscellaneous
Valuation Date 6/30/2023
Measurement Date 6/30/2024
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:

Discount Rate 6.90%
Inflation 2.30%
Payroll Growth 2.75%
Projected Salary Increase 3.30%-14.20% (1)
Investment Rate of Return 6.80% (2)
Mortality Derived using CalPERS'
Membership Data for all Funds
City of Artesia
Notes to Basic Financial Statements
June 30, 2025
44 9. RETIREMENT PLAN, Continued
B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions, Continued
The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent.

The table below reflects the long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation.

These rates of return are net of administrative expenses.

City of Artesia
Notes to Basic Financial Statements
June 30, 2025
45 9. RETIREMENT PLANS, Continued
B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions, Continued
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the City’s proportionate share of the net pension liability for each Plan, calculated using the discount rate for each Plan, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:

Pension Plan Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS’ financial reports.

C. Payable to the Pension Plan
On June 30, 2025, the City had no outstanding amount of contributions to the pension plan required for the fiscal year ended June 30, 2025.

10. OTHER POST-EMPLOYMENT BENEFITS
Plan Description
The City provides retiree medical benefits under the CalPERS health plan, which provides medical insurance benefits to eligible retirees and their spouses in accordance with various labor agreements. The plan is a singleemployer defined benefit OPEB plan. Copies of the CalPERS’ annual financial report may be obtained at CalPERS’ Executive Office, 400 P Street, Sacramento, CA 95814.

Benefits Provided
Employees become eligible to retire under PEMHCA and receive lifetime City-paid healthcare benefits upon attainment of age 50 and 5 years of covered PERS service, or by attaining qualifying disability retirement status. The City contributes 100% of the cost of retiree coverage and 50% of the cost of dependent coverage, for medical and dental insurance. Vision insurance is offered on a self-paid basis. Survivor benefits are paid until all covered dependents are either deceased or no longer eligible because of age limitations.

Miscellaneous
1% Decrease 5.90%
Net Pension Liability 7,570,530 $
Current Discount Rate 6.90%
Net Pension Liability 4,860,148 $
1% Increase 7.90%
Net Pension Liability 2,629,105 $
City of Artesia
Notes to Basic Financial Statements
June 30, 2025
46 10. OTHER POST-EMPLOYMENT BENEFITS, Continued
Eligibility
For employees hired before May 1, 2015 and retiring after that date, the City's contribution will be limited to the Cafeteria Plan contribution on behalf of active employees in the year of retirement. 2025 contribution cap amounts are $840 per month for single coverage, $1,250 per month for employee plus one, and $1,635 per month for family coverage.

Employees hired after May 1, 2015 must have at least 10 years of service to be eligible for City-paid retiree health benefits. Benefits for these retirees will be limited to $820 per month for single coverage, $1,220 per month for retiree plus one, and $1,455 per month for family coverage. Regardless of date of hire or date of retirement, eligible retirees receive a minimum City contribution equal to the statutory minimum employer contribution under PEMHCA ($158/mo. for 2025). The City also pays a 0.24% of premium administrative fee on behalf of employees and retirees.

The table below presents a summary of the basic participant information for the active and retired participants covered under the terms of the Plan.

Funding Policy
The contribution requirements of Plan members and the City are established and amended by the City. The required contribution is based on projected pay-as-you-go financing requirements. No assets are accumulated in a trust that meets the criteria in Paragraph 4 of GASB Statement No. 75.

Actuarial Method and Assumptions
The total OPEB liability in the July 1, 2024, actuarial report was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified.

Participants eligible for OPEB
Inactive plan members currently receiving payments 30
Active plan members 31
Total 61
Actuarial cost method Entry Age, Level Percent of Pay
Valuation of fiduciary net position No assets held in an irrevocable trust as of the measurement date.

Recognition of deferred inflows
and outflows of resources
Closed period equal to the average of the expected remaining service lives of all employees provided with OPEB
Salary increases 3.00 percent
Inflation rate 2.50 percent
Healthcare cost trend rate

7.00 percent for 2024 decreasing to 5.40 percent for 2029, 5.25 percent for 2030-2034, 4.60 percent for 2035-2049, 4.50 percent for 2050-2064, 4.25 percent for 2065-2074, and 4.00 percent for 2075 and later years; Medicare ages: 4.50 percent for 2025-2064, 4.25 percent for 2065-2074, and 4.00 percent for 2075 and later years.

Preretirement Mortality
Preretirement Mortality Rates for Public Agency Miscellaneous from CalPERS Experience Study (2000-2019).

Postretirement Mortality
Post-retirement Mortality Rates for Public Agency Miscellaneous from CalPERS Experience Study (2000-2019).

City of Artesia
Notes to Basic Financial Statements
June 30, 2025
47 10. OTHER POST-EMPLOYMENT BENEFITS, Continued
Total OPEB Liability
The following tables show the components of the City’s annual OPEB cost, the amount paid by the employer as benefits came due, and changes in the OPEB liability for fiscal year June 30, 2025. The City’s total OPEB liability of $5,619,899 was measured as of June 30, 2025, and was determined by an actuarial valuation as of July 1, 2024.

Discount Rate
Per GASB guidance, the single rate that produces the same present of expected benefit payments as 1) the expected long-term rate of return on plan assets during the period when projected assets are sufficient to pay future retiree benefits, and 2) the 20-year municipal bond rate after assets are projected to be exhausted. The Fidelity 20-year Municipal GO AA Index is used because it meets the GASB requirements and is based on a large amount municipal security data.

Changes in Total OPEB Liability
Sensitivity of Total OPEB Liability
There is sensitivity of the total OPEB liability due to changes in the discount rate and healthcare cost trend rates. The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated using the discount and trend rate that were 1 percentage point lower or 1 percentage point higher than the current discount and healthcare cost trend rates.

Discount rate
1% Decrease
(4.20%)
Discount Rate
(5.20%)
1% Increase
(6.20%)
Total OPEB Liability 6,296,492 5,619,899 5,050,282
Healthcare trend rate
1% Decrease Trend Rate 1% Increase
Total OPEB Liability 5,167,689 5,619,899 6,076,687
Total OPEB Liability
Service cost 182,643 Interest 253,299
Changes of benefit terms - Difference between expected and actual experience 15,902 Changes in assumptions or other inputs (751,574) Benefit payments 1 (324,619) Net change in total OPEB liability (624,349)
Total OPEB Liability - June 30, 2024 6,244,248 $
Total OPEB Liability - June 30, 2025 5,619,899 $
1 Includes $284,579 of pay-as-you-go contributions made from sources outside of trust, plus an implicit susbidy amount of $40,040.

City of Artesia
Notes to Basic Financial Statements
June 30, 2025
48 10. OTHER POST-EMPLOYMENT BENEFITS, Continued
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the fiscal year ended June 30, 2025, the City recognized OPEB expense of $153,152. At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Amounts reported as deferred inflows of resources related to OPEB will be recognized as OPEB expense as follows:

11. LIABILITY, PROPERTY, AND WORKERS’ COMPENSATION PROTECTION A. Description of Self-Insurance Pool Pursuant to Joint Powers Agreement The City of Artesia is a member of the California Joint Powers Insurance Authority (Authority). The Authority is composed of 118 California public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq. The purpose of the Authority is to arrange and administer programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group purchased insurance for property and other lines of coverage. The Authority began covering claims of its members in 1978. Each member government has an elected official as its representative on the Board of Directors which operates through a nine-member Executive Committee.

Deferred Deferred
Outflows of Inflows of
Resources Resources
Changes of Assumptions - $ 1,204,121 $
Difference between expected and actual experience 178,739 Total $ 1,204,121 178,739 $ Fiscal Year Deferred Outflows
Ending June 30: (Inflows) of Resources
2026 (220,063) $
2027 (220,063) 2028 (220,063)
2029 (159,963)
2030 (109,272)
Thereafter (95,958) Total $ (1,025,382)
City of Artesia
Notes to Basic Financial Statements
June 30, 2025
49 11. LIABILITY, PROPERTY, AND WORKERS’ COMPENSATION PROTECTION, Continued B. Self-Insurance Programs of the Authority
Each member pays an annual contribution to cover estimated losses for the coverage period. A retrospective adjustment is then conducted annually thereafter, for coverage years 2012-13 and prior. Retrospective adjustments are scheduled to continue indefinitely on coverage years 2012-13 and prior, until all claims incurred during those coverage years are closed, on a pool-wide basis. This subsequent cost re-allocation among members, based on actual claim development, can result in adjustments of either refunds or additional deposits required. Coverage years 2013-14 and forward are not subject to routine annual retrospective adjustment.

The total funding requirement for self-insurance programs is estimated using actuarial models and pre-funded through the annual contribution. Costs are allocated to individual agencies based on exposure (payroll) and experience (claims) relative to other members of the risk-sharing pool. Additional information regarding the cost allocation methodology is provided below.

Liability: In the liability program, claims are pooled separately between police and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $30,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $30,000 to $750,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $750,000 to $50 million, are distributed based on the outcome of cost allocation within the first and second loss layers. For 2019-20, the Authority’s pooled retention is $2 million per occurrence, with reinsurance to $20 million, and excess insurance to $50 million. The Authority’s reinsurance contracts are subject to the following additional pooled retentions: (a) 50% of the $2.5 million annual aggregate deductible in the $3 million x/s $2 million layer, (b) 50% quota share of the $3 million x/s $2 million layer, and (c) $3 million annual aggregate deductible in the $5 million x/s $10 million layer.

The overall coverage limit for each member, including all layers of coverage, is $50 million per occurrence. Costs of covered claim for subsidence losses have a sub-limit of $30 million per occurrence.

Workers’ Compensation Coverage: The City of Artesia also participates in the workers’ compensation pool administered by the Authority. In the workers’ compensation program claims are pooled separately between public safety (police and fire) and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $50,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second of losses includes incurred costs from $50,000 to $100,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs in excess from $100,000 to statutory limits are distributed based on the outcome of cost allocation within the first and second loss layers.

For 2024-25 the Authority’s pooled retention is $2 million per occurrence, with reinsurance to statutory limits under California Workers’ Compensation Law.

Employer’s Liability losses are pooled among members to $2 million. Coverage from $2 million to $5 million is purchased as part of a reinsurance policy, and Employer’s Liability losses from $5 million to $10 million are pooled among members.

City of Artesia
Notes to Basic Financial Statements
June 30, 2025
50 11. LIABILITY, PROPERTY, AND WORKERS’ COMPENSATION PROTECTION, Continued C. Purchased Insurance
Pollution Legal Liability Insurance - The City of Artesia participates in the pollution legal liability insurance program (formerly called environmental insurance) which is available through the Authority. The policy covers sudden and gradual pollution of scheduled property, streets, and storm drains owned by the City of Artesia. Coverage is on a claimsmade basis. There is a $50,000 deductible. The Authority has a limit of $50 million for the 3-year period from July 1, 2023, through July 1, 2025. Each member of the Authority has a $10 million sub-limit during the 3-year term of the policy.

Property Insurance - The City of Artesia participates in the all-risk property protection program of the Authority. This insurance protection is underwritten by several insurance companies. City of Artesia property is currently insured according to a schedule of covered property submitted by the City of Artesia to the Authority. City of Artesia property currently has all-risk property insurance protection in the amount of $50,000,000. There is a $10,000 deductible per occurrence Premiums for the coverage are paid annually and are not subject to retrospective adjustments.

Earthquake and Flood Insurance - The City of Artesia purchases earthquake and flood insurance on a portion of its property. The earthquake insurance is part of the property protection insurance program of the Authority. City of Artesia property currently has earthquake protection in the amount of $18,531,170. There is a deductible of 5% per unit of value with a minimum deductible of $100,000. Premiums for the coverage are paid annually and are not subject to retrospective adjustments.

Crime Insurance - The City of Artesia purchases crime insurance coverage in the amount of $1,000,000 with a $2,500 deductible. The fidelity coverage is provided through the Authority. Premiums are paid annually and are not subject to retrospective adjustments.

D. Adequacy of Protection
During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceeded pooled or insured coverage. There were no significant reductions in pooled or insured liability coverage in the fiscal year 2024-25.

12. CHANGES IN LEGISLATION AFFECTING CALIFORNIA REDEVELOPMENT AGENCIES On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 (“the Bill”) that provides for the dissolution of all redevelopment agencies in the State of California.

The Bill provides that upon dissolution of a redevelopment agency, either the city or other unit of local government will agree to serve as the “successor agency” to hold the assets units until they are distributed to other units of state and local government. On January 10, 2012, the City Council elected to become the Successor Agency for the former redevelopment agency in accordance with the Bill as part of the City resolution number 2012-04.

After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the State of California cannot enter new projects, obligations or commitments. Subject to the control of a newly established oversight board, remaining assets can only be used to pay enforceable obligations in existence as of the date of the dissolution (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments). Successor agencies will only be allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of former redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated.

City of Artesia
Notes to Basic Financial Statements
June 30, 2025
51 13. SUCCESSOR AGENCY DISCLOSURES
The assets and liabilities of the former Redevelopment Agency were transferred to the Successor Agency to the City of Artesia Redevelopment Agency on February 1, 2012 as a result of the dissolution of the former Redevelopment Agency.

The City is acting in a fiduciary capacity for the assets and liabilities. Disclosures related to these transactions are as follows:

Capital Assets
There were no capital asset activities for the fiscal year ended June 30, 2025.

Long-Term Liabilities
Long-term liabilities activity for the fiscal year ended June 30, 2025 were as follows:
2022 Tax Allocation Bonds
On May 25, 2022, the Agency issued $12,207,970 in Taxable Tax Allocation Refunding Bonds for the purpose of refunding the 2007 and 2009 Tax Allocation Bonds. The bonds mature annually on June 1, from 2024 to 2046, in amounts ranging from $185,000 to $877,140. Interest is payable semiannually on June 1 and December 1, with a yield of 4.16% to 5.46%. The defeasance created a deferred loss on refunding totaling $200,444. The deferred loss on refunding balance on June 30, 2025, was $168,516. The balance outstanding on June 30, 2025, was $11,602,520.

The 2022 Tax Allocation Bonds are payable solely from the taxes received by the Successor Agency on behalf of the former Redevelopment Agency. The total principal and interest remaining to be paid on the bonds is $17,199,200. The annual requirements to amortize the 2022 Tax Allocation Bonds outstanding on June 30, 2025, are as follows:

Fiscal
Year Ending
June 30, Principal Interest Total
2026 442,140 $ 517,881 $ 960,021 $
2027 463,300 498,547 961,847 2028 483,920 478,277 962,197 2029 503,630 457,094 960,724
2030 522,710 435,039 957,749
2031 - 2035 2,988,440 1,809,686 4,798,126 2036 – 2040 3,707,810 1,093,007 4,800,817 2041 - 2045 2,279,980 295,656 2,575,636
2046 210,590 11,493 222,083 Totals 11,602,520 $ 5,596,680 $ 17,199,200 $ Balance at Balance at Due Within
June 30, 2024 Additions Repayments June 30, 2025 One Year 2022 Tax Allocation Bonds 12,022,970 $ - $ (420,450) $ 11,602,520 $ 442,140 $ Total 12,022,970 $ - $ (420,450) $ 11,602,520 $ 442,140 $ City of Artesia
Notes to Basic Financial Statements
June 30, 2025
52 14. COMMITMENTS AND CONTINGENCIES
A. Lawsuits
The City is presently involved in certain matters of litigation that have arisen in the normal course of conducting City business. City management believes that these cases, in aggregate, are not expected to result in a material adverse financial impact on the City with the exception of the case noted below. Additionally, City management believes that the City’s insurance programs are sufficient to cover any potential losses should an unfavorable outcome materialize.

B. Federal and State Grant Programs
The City has received Federal and State grants for specific purposes that are subject to review and audit by the respective governments. Although such audits could result in expenditure disallowance under grant terms, any required reimbursements are not expected to be material.

C. Commitments
As of June 30, 2025, the City did not have any commitments and, in the opinion of City management, there were no additional outstanding matters that would have a significant effect on the financial position of the funds of the City.

CITY OF ARTESIA

REQUIRED SUPPLEMENTAL INFORMATION
JUNE 30, 2025
53 Schedule of Changes in the Net Pension Liability and Related Ratios - Last 10 Years* Notes to Schedule
Change in Benefit Terms: The figures above do not include any liability impact that may have resulted from plan changes which occurred after June 30, 2013 as they have minimal cost impact. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a Golden Handshakes).

Change in Assumptions: In the 2016 valuation, the accounting discount rate was reduced from 7.65 percent to 7.15 percent.

In 2023, the accounting discount rate reduced from 7.15% to 6.90%.

Measurement Date June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Proportion of the net pension liability 0.08571% 0.08207% 0.05112% 0.07287% 0.06597% Proportionate share of the net pension liability 3,432,285 $ $ 3,092,846 $ 2,015,175 $ 2,605,653 $ 1,900,640 Covered payroll $ 1,523,499 $ 1,462,122 $ 1,456,843 $ 1,437,166 $ 1,562,635 Proportionate Share of the net pension liability
as a percentage of covered payroll 225.29% 211.53% 138.32% 181.30% 121.63% Plan's fiduciary net position $ 12,377,615 $ 11,139,639 $ 6,172,484 $ 10,016,378 $ 10,661,524 Plan's total pension liability $ 15,809,900 $ 14,232,486 $ 8,187,659 $ 12,622,031 $ 12,562,164 Plan fiduciary net position as a percentage of
total pension liability 78.29% 78.27% 75.39% 79.36% 84.87% Measurement Date June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 Proportion of the net pension liability 0.10049% 0.09769% 0.09707% 0.11186% 0.08975% Proportionate share of the net pension liability 4,860,148 $ $ 4,884,987 $ 4,542,084 $ 2,124,013 $ 3,785,700 Covered payroll $ 3,155,120 $ 3,054,153 $ 2,911,455 $ 2,872,837 $ 2,312,883 Proportionate Share of the net pension liability
as a percentage of covered payroll 154.04% 159.95% 156.01% 73.93% 163.68% Plan's fiduciary net position $ 15,225,623 $ 14,000,388 $ 13,726,794 $ 14,149,128 $ 12,028,002 Plan's total pension liability $ 20,085,771 $ 18,885,374 $ 18,268,878 $ 16,273,141 $ 15,813,702 Plan fiduciary net position as a percentage of
total pension liability 75.80% 74.13% 75.14% 86.95% 76.06%

CITY OF ARTESIA

REQUIRED SUPPLEMENTAL INFORMATION
JUNE 30, 2025
54 Schedule of Pension Contributions – Last 10 Years*
Notes to Schedule
(1)The mortality table was developed based on CalPERS’ specific data. The table includes 20 years of mortality improvements using Society of Actuaries Scale BB. For more details on this table, please refer to the 2014 experience study report.

June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 Contractual required contribution (actuarially
determined) $ 164,630 $ 193,376 $ 105,958 $ 99,359 $ 102,746 Contributions in relation to the actuarially
determined contributions (164,630) (193,376) (105,958) (99,359) (102,746) Contribution deficiency (excess) $ - $ - $ - $ - $ - Covered payroll $ 2,312,883 $ 1,523,499 $ 1,462,122 $ 1,456,843 $ 1,437,166 Contributions as a percentage of covered
payroll 7.12% 12.69% 7.25% 6.82% 7.15%
June 30, 2025 June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 Contractual required contribution (actuarially
determined) $ 643,371 $ 565,987 $ 537,924 $ 318,726 $ 233,135 Contributions in relation to the actuarially
determined contributions (643,371) (565,987) (537,924) (318,726) (233,135) Contribution deficiency (excess) $ - $ - $ - $ - $ - Covered payroll $ 3,285,489 $ 3,155,120 $ 3,054,153 $ 2,911,455 $ 2,872,837 Contributions as a percentage of covered
payroll 19.58% 17.94% 17.61% 10.95% 8.12%
Valuation Date: June 30, 2023
Methods and assumptions used to determine contribution rates:

Actuarial Cost Method Entry-Age Normal Cost Method
Amortization Method Level Percent of Payroll
Asset Valuation Method Market Value
Inflation 2.30%
Salary Increases 3.30% to 14.20% depending on age,
service, and type of employment
Investment Rate of Return

6.80%, net of pension plan investment
and administrative Expenses; includes
Inflation
Mortality Rate Table (1) Derived using CalPERS' Membership Data for all Funds

CITY OF ARTESIA

REQUIRED SUPPLEMENTAL INFORMATION
JUNE 30, 2025
55 Schedule of Changes in Total OPEB Liability and Related Ratios – Last 10 Years* Notes to Schedule
Funding Policy: The City funds the benefits on a pay-as-you-go basis. No assets are accumulated in a trust. *Fiscal year 2018 was the 1st year of implementation, therefore only eight years are shown.

Fiscal Year Ending Fiscal Year Ending Fiscal Year Ending Fiscal Year Ending Fiscal Year Ending Total OPEB Liability 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 Service cost 397,388 $ 344,922 $ 247,789 $ 218,038 $ 211,687 $ Interest 164,271 186,267 213,975 222,388 214,547 Changes of assumptions (1,830,773) 907,796 691,274 434,702 Difference between expected and actual experience (563,468) Benefit payments (256,822) (222,071) (215,848) (207,850) (223,948) Net change in total OPEB liability (1,525,936) 653,446 937,190 667,278 202,286 Total OPEB Liability - beginning of fiscal year 8,286,203 7,632,757 6,695,567 6,028,289 5,826,003 Total OPEB Liability - end of fiscal year 6,760,267 $ 8,286,203 $ 7,632,757 $ 6,695,567 $ 6,028,289 $ Covered-employee payroll 3,023,854 $ 2,828,429 $ 2,354,019 $ 2,312,883 $ 2,087,473 $ Total OPEB Liability as a % of eligible payroll 223.6% 293.0% 324.2% 289.5% 288.8% Fiscal Year Ending Fiscal Year Ending Fiscal Year Ending Total OPEB Liability 6/30/2025 6/30/2024 6/30/2023
Service cost 182,643 $ 166,262 $ 168,254 $
Interest 253,299 240,621 231,171 Changes of assumptions (751,574) (951,924) Difference between expected and actual experience 15,902 (82,315) 310,855 Benefit payments (324,619) (292,743) (306,200) Net change in total OPEB liability (624,349) 31,825 (547,844) Total OPEB Liability - beginning of fiscal year 6,244,248 6,212,423 6,760,267 Total OPEB Liability - end of fiscal year 5,619,899 $ 6,244,248 $ 6,212,423 $ Covered-employee payroll 3,159,517 $ 2,612,422 $ 2,417,440 $ Total OPEB Liability as a % of eligible payroll 177.9% 239.0% 257.0%

CITY OF ARTESIA

REQUIRED SUPPLEMENTAL INFORMATION
JUNE 30, 2025
56 Schedule of OPEB Employer Contributions – Last 10 Years* 1 Per GASB 75 paragraph 57c., these disclosures are only required if the employer calculates an Actuarially Determined Contribution (ADC). The City does not currently calculate an ADC. *Fiscal year 2018 was the 1st year of implementation, therefore only eight years are shown.

Fiscal Year Ending Fiscal Year Ending Fiscal Year Ending Fiscal Year Ending Fiscal Year Ending 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018
Actuarially determined contribution (ADC)1 N/A N/A N/A N/A N/A Contributions in relation to the ADC N/A N/A N/A N/A N/A Contribution deficiency (excess) N/A N/A N/A N/A N/A
Covered-employee payroll 3,023,854 $ 2,828,429 $ 2,354,019 $ 2,312,883 $ 2,087,473 $ Contributions as a percent of covered-employee payroll N/A N/A N/A N/A N/A Actuarially determined contribution (ADC)1 Fiscal Year Ending Fiscal Year Ending Fiscal Year Ending Contributions in relation to the ADC 6/30/2025 6/30/2024 6/30/2023 Contribution deficiency (excess) N/A N/A N/A

N/A N/A N/A
Covered-employee payroll N/A N/A N/A
Contributions as a percent of covered-employee payroll
$ 2,612,422 3,159,517 $ 2,417,440 $

N/A N/A N/A
City of Artesia
Note to Required Supplementary Information
For the fiscal year ended June 30, 2025
57 1. BUDGETARY INFORMATION
The City follows these procedures in establishing the budgetary data reflected in the financial statements. 1) The annual budget is adopted by the City Council after a public hearing and provides for the general operation of the City. The operating budget includes proposed expenditures and the means of financing them.
2) Budgets for the General and Special Revenue Funds are adopted on a basis substantially consistent with accounting principles generally accepted in the United States of America.

Accordingly, actual revenues and expenditures can be compared with related budget amounts without any significant reconciling items.
3) Budget control is maintained over all accounts, and expenditures are not allowed to exceed appropriations at the fund level (i.e. General Fund, Special Revenue Fund, etc.), except as approved by the City Council.
4) The City Council approves all significant budgetary changes. 5) Under Article XIIIB of the California Constitution (the Gann Spending Limitation Initiative), the City is restricted as to the amount of annual appropriations from proceeds of taxes, and if proceeds of taxes exceed allowed appropriations, the excess must either be refunded to the State Controller, or returned to the taxpayers through revised tax rates or revised fee schedules, or an excess in one year may be offset against a deficit in following year.

The City did not adopt a budget for the following Non-major Governmental Funds: Federal STP-L, HOME, California Street Grants, Paid Parking, Traffic Congestion, MAP 21 Exchange, Clean Air Bus Grant, Sheriff, Recycled Oil Grant, and Cal Recycle Grant funds.

City of Artesia
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual General Fund
For the fiscal year ended June 30, 2025
Variance with
Final Budget
Actual Positive/
Original Final Amounts (Negative)
Fund balance, July 1 $ 14,277,195 $ 14,277,195 $ 14,277,195 $ - Resources (inflows):

Taxes 9,967,584 10,741,009 11,483,615 742,606
Licenses and permits 992,600 994,576 1,037,486 42,910
Intergovernmental 135,350 109,350 123,672 14,322
Charges for services 1,599,127 1,859,607 2,111,083 251,476 Use of money and property 1,328,011 705,386 945,286 239,900 Fines and forfeitures 215,000 215,000 134,509 (80,491)
Developer fees 185,000 185,000 (185,000)
Other revenues 62,000 98,000 192,543 94,543
Amount available for appropriation 14,484,672 14,907,928 16,028,194 1,120,266 Charges to appropriations (outflows):

General government 5,147,619 4,901,119 4,891,848 9,271
Public safety 5,735,133 5,137,933 5,016,329 121,604
Parks and recreation 1,376,600 1,531,870 1,293,543 238,327 Public works 898,860 1,056,804 994,589 62,215
Community development 2,219,374 2,536,097 2,253,586 282,511 Capital outlay 148,046 188,300 144,744 3,302
Total charges to appropriations 15,565,886 15,311,869 14,594,639 717,230 Transfers in 304,891 457,516 (152,625)
Transfers out (64,631) (60,238) (583,960) (519,329)
Total transfers (60,238) 392,885 (279,069) (671,954)
Excess of resources over
charges to appropriations (1,141,452) (11,056) 1,154,486 1,165,542 Fund balance, June 30 $ 13,135,743 $ 14,266,139 $ 15,431,681 $ 1,165,542 Budgeted Amounts
See accompanying note to required supplementary information. 58 City of Artesia
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Billboard
For the fiscal year ended June 30, 2025
Variance with
Final Budget
Actual Positive/
Original Final Amounts (Negative)
Fund balance, July 1 $ 688,665 688,665 $ 688,665 $ - $
Resources (inflows):

Use of money and property 170,000 180,000 221,990 41,990 Amount available for appropriation 170,000 180,000 221,990 41,990 Charges to appropriations (outflows):

Parks and recreation 250,000 250,000 250,000
Community development 77,853 18,300 68,063 9,790
Total charges to appropriations 268,300 327,853 318,063 9,790 Excess of resources over (under)
charges to appropriations (98,300) (147,853) (96,073) 51,780 Fund balance, June 30 $ 590,365 $ 540,812 $ 592,592 $ 51,780 Budgeted Amounts
See accompanying note to required supplementary information. 59 NON-MAJOR

GOVERNMENTAL FUNDS

SPECIAL REVENUE FUNDS
State Gas Tax – To account for any street or road purpose including maintenance and construction, engineering and administration apportioned under the Streets and Highways Code of the State of California.

Federal STP-L – To account for leftover County exchange of STPL monies for street related projects.

Bicycle & Pedestrian – To account for funds received for improvements made for planning and construction of bicycle and pedestrian facilities.

Proposition A – To account for the benefit of public transit such as dial-a-ride and recreation transportation programs.

Community Development Block Grant – To account for grant funds received for programs that assist low- and moderate-income residents with single family housing rehabilitation.

Parks and Recreation Grants – To receive grant funds used to update and make park improvements not accounted in other funds.

HOME – To receive and account for grant funds as part of the HOME program.

Proposition C – To account for the benefit of public transit with expanded street maintenance and improvements such as traffic signal, marking and striping, median maintenance, and matching dollars for street improvement grants.

Air Quality – To account for AB2766 Subvention Program funds to implement programs that reduce air pollution from motor vehicles.

California Street Grants - is a special revenue fund and accounts for grant funding of Federal awarded highway transportation and safety improvement projects.

California Beverage Recycling – To account for funds awarded by State to provide litter/recycling clean-up, education, and community outreach.

Measure W - To account for monitoring and implementing federal, state and local programs to ensure surface water quality, water conservation and recycling efforts, maintaining the storm water management plan, improving storm water drainage quality and maintaining the City-owned drainage system.

Development Impact Fees – To account for fees charged on specific developments for the purpose of defraying all or a portion of the cost of public facilities related to the development project.

SB1 – To account for revenue and expenditures associated with State Assembly Bill 1 funding for streets and roads.

Paid Parking – To account for revenue and expenditures associated with the Artesia Parking Authority.

NON-MAJOR

GOVERNMENTAL FUNDS

SPECIAL REVENUE FUNDS (CONTINUED)
Artesia Lighting District – To account for property tax direct assessments used for maintenance, operation, and repair of street lights and signal expenditures.

Traffic Congestion - To account for funding received for transportation projects that improve traffic mobility and relieve congestion.

MAP 21 Exchange - An exchange of City available Federal Surface Transportation Program-Local Funds (STP-L Funds) for like amount of Los Angeles County Metropolitan Transportation Authority (LACMTA Funds). These are flexible funds for transportation capital improvements that would normally qualify for the STP-L program.

Clean Air Bus Grant – To account for federal grant to purchase electric buses.

Measure M – To account for funds received for public transit system improvements.

Sheriff – To account for the forfeiture and seizure assets collected in the City of Artesia by the contract policing agency and primarily used for law enforcement equipment and training.

Metro TOD 4 – To account for grant funds received for transit-oriented development planning for downtown Artesia.

C.O.P.S. Grant – To account for supplemental law enforcement services funding of frontline law enforcement and juvenile justice programs.

Community Facility District – To account for taxes collected within the district which pay for public safety, flood, and storm protection services as well as maintenance of lighting, parkways, streets, roads, and open spaces.

Measure R – To account for the engineering, administrative, traffic median, and parking overflow improvements of transportation services.

Housing Authority – To account for the maintenance, planning, and improvements of all low-moderate income housing assets to assist low- and moderate-income housing families and seniors.

Recycled Oil – To account for the State-funded grant received to help disposal and recycling of used oil.

Cal Fire Urban Grant – To account for the State-funded grant received to help expand the City's Urban Forest and reduce greenhouse gasses and urban heat island impacts through tree planting.

California Natural Resources Grant – To account for the State-funded grant received to help expand the City's environmental and community services.

HUD – To account for the Federally funded grants received to help expand the City's Housing and Urban Development.

Cal Recycle Grant – To account for the State-funded grant received to help the State reach its climate change goals.

City of Artesia
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Capital Projects
For the fiscal year ended June 30, 2025
Variance with
Final Budget
Actual Positive/
Original Final Amounts (Negative)
Fund balance, July 1, $ 1,523,514 $ 1,523,514 $ 1,523,514 $ - Resources (inflows):

Charges for Services 20,000 20,000 12,980 (7,020)
Use of Money and Property 7,000 7,000 3,784 (3,216)
Intergovernmental 2,269,922 2,269,922 714,637 (1,555,285) Other revenue 20,230 20,230
Amount available for appropriation 2,296,922 2,296,922 751,631 (1,545,291) Charges to appropriations (outflows):

Public works 489,016 640,310 352,382 287,928
Capital outlay 1,945,475 1,943,593 1,065,127 878,466
Total charges to appropriations 2,434,491 2,583,903 1,417,509 1,166,394 Excess of resources over (under)
charges to appropriations (137,569) (286,981) (665,878) (378,897) Fund balance, June 30 $ 1,385,945 $ 1,236,533 $ 857,636 $ (378,897) Budgeted Amounts
60 City of Artesia
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2025
Community Parks & California California Artesia
Federal Bicycle & Development Recreation Street Beverage Development Paid Lighting State Gas Tax STP-L Pedestrian Proposition A Block Grant Grants HOME Proposition C Air Quality Grants Recycling Measure W Impact Fees SB1 Parking District ASSETS
Cash and investments $ 72,941 - $ $ 1,151 $ 457,656 $ 520,984 - $ $ 3,547 $ 706,568 $ 322,584 $ 553,019 $ 5,773 $ 707,115 $ 1,951,683 $ 1,074,249 $ 381,515 $ 110,434 Receivables:

Accounts 43,103 16,463 2,375 660,117 5,576 37,502 3,399 Total assets $ 43,103 $ 72,941 $ 1,151 $ 474,119 $ 1,181,101 2,375 $ $ 3,547 $ 706,568 $ 328,160 $ 553,019 $ 5,773 $ 707,115 $ 1,951,683 $ 1,111,751 $ 381,515 $ 113,833

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable $ 67,733 $ - $ - $ 29,316 $ 4,202 - $ $ 31,656 - $ $ - $ - $ 63,054 - $ $ - $ - $ 17,686 - $ Deposits payable
Due to other funds 86,301 30,102
Total liabilities 154,034 29,316 30,102 4,202 31,656 63,054 17,686 - Fund Balances:

Restricted for:

Street projects 72,941 1,951,683 1,111,751
Transportation projects 1,151 444,803 674,912 553,019
Housing projects 3,547
Public works 328,160 5,773 644,061 381,515 96,147
Parks and recreation 1,176,899
Public safety
Unassigned (110,931) (27,727)
Total fund balances (110,931) 72,941 1,151 444,803 (27,727) 1,176,899 3,547 674,912 328,160 553,019 5,773 644,061 1,951,683 1,111,751 381,515 96,147 Total liabilities and fund balances $ 43,103 $ 72,941 $ 1,151 $ 474,119 $ 1,181,101 2,375 $ $ 3,547 $ 706,568 $ 328,160 $ 553,019 $ 5,773 $ 707,115 $ 1,951,683 $ 1,111,751 $ 381,515 $ 113,833 (Continued)
Special Revenue
61 City of Artesia
Combining Balance Sheet
Non-Major Governmental Funds, Continued
June 30, 2025
Total
California Other
Traffic MAP 21 Clean Air Metro C.O.P.S Community Measure Housing Recycled Cal Fire Natural Resources Cal Recycle Governmental Congestion Exchange Bus Grant Measure M Sheriff TOD 4 Grant Facility District R Authority Oil Urban Grant Grant HUD Grant Funds ASSETS
Pooled cash and investments $ 22,891 $ 201,426 $ 1,457,828 - $ $ 447 $ 221,347 - $ $ 85,426 $ 726,096 $ 883,977 $ 7,052 $ - $ - $ 73,594 - $ $ 10,549,303 Receivables:

Accounts 31,639 253,998 40,779 1,094,951
- - - - -
Total assets $ 22,891 $ 201,426 $ 1,457,828 - $ $ 31,639 447 $ $ 221,347 $ 85,426 $ 726,096 $ 883,977 $ 7,052 $ - $ 253,998 $ 40,779 $ 73,594 $ 11,644,254

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable $ - $ - $ 64,549 - $ $ 1,203 - $ $ - $ 2,077 - $ $ 38,412 $ 1,820 $ 4,930 $ 41,805 $ - $ 368,443 - $ Deposits payable 61,895 61,895
Due to other funds 10,548 90,052 74,808 501,197 24,293 817,301 Total liabilities 10,548 64,549 91,255 2,077 100,307 1,820 79,738 543,002 24,293 1,247,639 Fund Balances:

Restricted for:

Street projects 3,136,375
Transportation projects 22,891 201,426 724,019 2,622,221 Housing projects 783,670 787,217
Public works 5,232 73,594 1,534,482
Parks and recreation 1,176,899
Public safety 1,393,279 447 221,347 85,426 1,700,499
Unassigned (10,548) (59,616) (79,738) (289,004) 16,486 (561,078) Total fund balances 22,891 201,426 (10,548) 1,393,279 (59,616) 447 221,347 85,426 724,019 783,670 5,232 (79,738) (289,004) 16,486 73,594 10,396,615 Total liabilities and fund balances $ 22,891 $ 201,426 $ 1,457,828 - $ $ 31,639 447 $ $ 221,347 $ 85,426 $ 726,096 $ 883,977 $ 7,052 $ - $ 253,998 $ 40,779 $ 73,594 $ 11,644,254 Special Revenue
62 City of Artesia
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Non-Major Governmental Funds
For the fiscal year ended June 30, 2025
Community Parks & California California Artesia
Federal Bicycle & Development Recreation Street Beverage Development Paid Lighting State Gas Tax STP-L Pedestrian Proposition A Block Grant Grants HOME Proposition C Air Quality Grants Recycling Measure W Impact Fees SB1 Parking District REVENUES:

Taxes $ - $ - $ - $ 438,723 $ - $ - $ - $ 350,253 $ - $ - $ - $ - $ - $ - $ - $ 137,177 Intergovernmental 460,520 8,075 730,306 21,352 105,785 215,199 445,942 Use of money and property 3,781 60 46,631 33,572 184 33,849 17,342 24,939 299 41,622 101,751 48,751 3,819 Other 16,958 1,272,413 54,399
Total revenues 477,478 3,781 60 485,354 8,075 763,878 184 384,102 38,694 130,724 299 256,821 1,374,164 494,693 54,399 140,996 EXPENDITURES:

Current:

Public safety
Parks and recreation 256,468
Public works 607,179 572,585 264,864 41,689 155,190 162,670 2,082 192,209 236,019 Community Development 13,305
Capital outlay 567,522 579,000 54,194 7,235 251,904 90,000 149,485 Total expenditures 607,179 1,140,107 13,305 835,468 319,058 48,924 407,094 252,670 151,567 192,209 236,019

REVENUES OVER
(UNDER) EXPENDITURES (129,701) 3,781 60 (654,753) (5,230) (71,590) 184 65,044 (10,230) 130,724 299 (150,273) 1,121,494 343,126 (137,810) (95,023) OTHER FINANCING SOURCES (USES):

Transfers in 519,325 64,635
Transfers out
Total other financing sources (uses) 519,325 64,635

REVENUES AND OTHER

FINANCING SOURCES OVER
(UNDER) EXPENDITURES AND
OTHER FINANCING USES (129,701) 3,781 60 (654,753) (5,230) (71,590) 184 65,044 (10,230) 130,724 299 (150,273) 1,121,494 343,126 381,515 (30,388) FUND BALANCES:

Beginning of fiscal year 18,770 69,160 1,091 1,099,556 (22,497) 1,248,489 3,363 609,868 338,390 422,295 5,474 794,334 830,189 768,625 126,535 End of fiscal year $ (110,931) $ 72,941 $ 1,151 $ 444,803 $ (27,727) $ 1,176,899 $ 3,547 $ 674,912 $ 328,160 $ 553,019 $ 5,773 $ 644,061 $ 1,951,683 $ 1,111,751 $ 381,515 $ 96,147 (Continued)
Special Revenue
63 City of Artesia
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Non-Major Governmental Funds, Continued
For the fiscal year ended June 30, 2025
Total
California Other
Traffic MAP 21 Clean Air Metro C.O.P.S. Community Measure Housing Recycled Cal Fire Natural Resources Cal Recycle Governmental Congestion Exchange Bus Grant Measure M Sheriff TOD 4 Grant Facility District R Authority Oil Urban Grant Grant HUD Grant Funds REVENUES:

Taxes $ - $ - $ - $ - $ - $ - $ - $ 27,324 $ 262,642 $ - $ - $ - $ - $ - $ 1,216,119 - $ Intergovernmental 297,564 177,343 194,663 16,590 5,000 1,046,636 57,833 3,782,808 Use of money and property 1,186 10,439 69,918 22,708 3,582 31,132 136,209 239 3,995 636,008 Other 1,343,770
Total revenues 1,186 10,439 367,482 177,343 217,371 30,906 310,364 136,209 5,239 1,046,636 57,833 3,995 6,978,705 EXPENDITURES:

Current:

Public safety 59,898 59,898
Parks and recreation 756,507 1,012,975
Public works 22,373 21,498 5,084 4,754 2,288,196
Community Development 116,243 198,018 25,204 352,770
Capital outlay 87,711 5,500 549,371 2,341,922
Total expenditures 110,084 116,243 26,998 198,018 5,084 59,898 1,305,878 25,204 4,754 6,055,761

REVENUES OVER
(UNDER) EXPENDITURES 1,186 10,439 257,398 61,100 217,371 30,906 283,366 (61,809) 155 (59,898) (259,242) 32,629 (759) 922,944 OTHER FINANCING SOURCES (USES):

Transfers in 583,960
Transfers out (304,891) (304,891)
Total other financing sources (uses) (304,891) 279,069

REVENUES AND OTHER

FINANCING SOURCES OVER
(UNDER) EXPENDITURES AND
OTHER FINANCING USES 1,186 10,439 257,398 61,100 (87,520) 30,906 283,366 (61,809) 155 (59,898) (259,242) 32,629 (759) 1,202,013 FUND BALANCES:

Beginning of fiscal year 21,705 190,987 (10,548) 1,135,881 447 (120,716) 308,867 54,520 440,653 845,479 5,077 (19,840) (29,762) (16,143) 74,353 9,194,602 End of fiscal year $ 22,891 $ 201,426 $ (10,548) $ 1,393,279 $ 447 $ (59,616) $ 221,347 $ 85,426 $ 724,019 $ 783,670 $ 5,232 $ (79,738) $ (289,004) $ 16,486 $ 73,594 $ 10,396,615 Special Revenue
64 City of Artesia
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual State Gas Tax
For the fiscal year ended June 30, 2025
Variance with
Final Budget
Actual Positive/
Original Final Amounts (Negative)
Fund balance, July 1 $ 18,770 $ 18,770 $ 18,770 $ -
Resources (inflows):

Intergovernmental 455,079 463,346 460,520 (2,826)
Use of money and property 8,000 8,000 (8,000)
Other 10,000 10,000 16,958 6,958
Amount available for appropriation 473,079 481,346 477,478 (3,868) Charges to appropriations (outflows):

Public Works 502,451 592,239 607,179 (14,940)
Capital outlay 100,000
Total charges to appropriations 602,451 592,239 607,179 (14,940) Excess of resources over (under)
charges to appropriations (129,372) (110,893) (129,701) (18,808) Fund balance, June 30 $ (110,602) $ (92,123) $ (110,931) $ (18,808) Budgeted Amounts
65 City of Artesia
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Bicycle & Pedestrian
For the fiscal year ended June 30, 2025
Variance with
Final Budget
Actual Positive/
Original Final Amounts (Negative)
Fund balance, July 1 $ 1,091 $ 1,091 $ 1,091 $ -
Resources (inflows):

Intergovernmental 16,533 16,533 (16,533)
Use of money and property 60 60
Amount available for appropriation 16,533 16,533 60 (16,473) Charges to appropriations (outflows):

Capital outlay 16,533 16,533 16,533
Total charges to appropriations 16,533 16,533 16,533
Excess of resources over (under)
charges to appropriations 60 60
Fund balance, June 30 $ 1,091 $ 1,091 $ 1,151 $ 60
Budgeted Amounts
66 City of Artesia
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Proposition A
For the fiscal year ended June 30, 2025
Variance with
Final Budget
Actual Positive/
Original Final Amounts (Negative)
Fund balance, July 1 $ 1,099,556 $ 1,099,556 $ 1,099,556 $ - Resources (inflows):

Taxes 452,642 452,642 438,723 (13,919)
Use of money and property 46,631 46,631
Amount available for appropriation 452,642 452,642 485,354 32,712 Charges to appropriations (outflows):

Public works 964,933 1,004,932 572,585 432,347
Capital outlay 300,000 941,992 567,522 374,470
Total charges to appropriations 1,264,933 1,946,924 1,140,107 806,817 Excess of resources over (under)
charges to appropriations (812,291) (1,494,282) (654,753) 839,529 Fund balance, June 30 $ 287,265 $ (394,726) $ 444,803 $ 839,529 Budgeted Amounts
67 City of Artesia
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual CDBG
For the fiscal year ended June 30, 2025
Variance with
Final Budget
Actual Positive/
Original Final Amounts (Negative)
Fund balance, July 1 $ (22,497) $ (22,497) $ (22,497) $ - Resources (inflows):

Intergovernmental 90,824 272,472 8,075 (264,397)
3 Amount available for appropriation 90,824 272,472 8,075 (264,397) Charges to appropriations (outflows):

Community development 90,824 272,472 13,305 259,167
Total charges to appropriations 90,824 272,472 13,305 259,167 Excess of resources over (under)
charges to appropriations (5,230) (5,230)
Fund balance, June 30 $ (22,497) $ (22,497) $ (27,727) $ (5,230) Budgeted Amounts
68 City of Artesia
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Parks and Recreation Grants
For the fiscal year ended June 30, 2025
Variance with
Final Budget
Actual Positive/
Original Final Amounts (Negative)
Fund balance, July 1 $ 1,248,489 $ 1,248,489 $ 1,248,489 $ - Resources (inflows):

Intergovernmental 709,724 726,224 730,306 4,082
Use of money and property 33,572 33,572
Amount available for appropriation 709,724 726,224 763,878 37,654 Charges to appropriations (outflows):

Parks and recreation 130,170 146,670 256,468 (109,798)
Capital outlay 579,554 579,554 579,000 554
Total charges to appropriations 709,724 726,224 835,468 (109,244) Excess of resources over (under)
charges to appropriations (71,590) (71,590)
Fund balance, June 30 $ 1,248,489 $ 1,248,489 $ 1,176,899 $ (71,590) Budgeted Amounts
69 City of Artesia
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Proposition C
For the fiscal year ended June 30, 2025
Variance with
Final Budget
Actual Positive/
Original Final Amounts (Negative)
Fund balance, July 1 $ 609,868 $ 609,868 $ 609,868 $ -
Resources (inflows):

Taxes 375,455 375,455 350,253 (25,202)
Use of money and property 33,849 33,849
Amount available for appropriation 375,455 375,455 384,102 8,647 Charges to appropriations (outflows):

Public works 295,500 335,515 264,864 70,651
Capital outlay 75,180 100,180 54,194 45,986
Total charges to appropriations 370,680 435,695 319,058 116,637 Excess of resources over (under)
charges to appropriations 4,775 (60,240) 65,044 125,284 Fund balance, June 30 $ 614,643 $ 549,628 $ 674,912 $ 125,284 Budgeted Amounts
70 City of Artesia
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Air Quality
For the fiscal year ended June 30, 2025
Variance with
Final Budget
Actual Positive/
Original Final Amounts (Negative)
Fund balance, July 1 $ 338,390 $ 338,390 $ 338,390 $ -
Resources (inflows):

Intergovernmental 19,850 19,850 21,352 1,502
Use of money and property 17,342 17,342
Amount available for appropriation 19,850 19,850 38,694 18,844 Charges to appropriations (outflows):

Public works 4,386 4,386 41,689 (37,303)
Capital outlay 19,850 161,850 7,235 154,615
Total charges to appropriations 24,236 166,236 48,924 117,312 Excess of resources over (under)
charges to appropriations (4,386) (146,386) (10,230) 136,156 Fund balance, June 30 $ 334,004 $ 192,004 $ 328,160 $ 136,156 Budgeted Amounts
71 City of Artesia
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Cal Recycle Grant
For the fiscal year ended June 30, 2025
Variance with
Final Budget
Actual Positive/
Original Final Amounts (Negative)
Fund balance, July 1 $ 74,353 74,353 $ 74,353 $ - $
Resources (inflows):

Intergovernmental 75,000 75,000 (75,000)
Use of money and property 3,995 3,995
Amount available for appropriation 75,000 75,000 3,995 (71,005) Charges to appropriations (outflows):

Public works 75,000 75,000 4,754 70,246
Total charges to appropriations 75,000 75,000 4,754 70,246 Excess of resources over (under)
charges to appropriations (759) (759)
Fund balance, June 30 $ 74,353 $ 74,353 $ 73,594 $ (759) Budgeted Amounts
72 City of Artesia
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Measure W
For the fiscal year ended June 30, 2025
Variance with
Final Budget
Actual Positive/
Original Final Amounts (Negative)
Fund balance, July 1 $ 794,334 794,334 $ 794,334 $ - $
Resources (inflows):

Intergovernmental 215,199 215,199
Use of money and property 41,622 41,622
Amount available for appropriation 215,199 256,821 41,622 Charges to appropriations (outflows):

Public works 187,896 192,374 155,190 32,706
Capital outlay 156,744 156,744 251,904 (95,160)
Total charges to appropriations 349,118 344,640 407,094 (62,454) Excess of resources over (under)
charges to appropriations (349,118) (129,441) (150,273) (20,832) Fund balance, June 30 $ 445,216 $ 664,893 $ 644,061 $ (20,832) Budgeted Amounts
73 City of Artesia
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Development Impact Fees
For the fiscal year ended June 30, 2025
Variance with
Final Budget
Actual Positive/
Original Final Amounts (Negative)
Fund balance, July 1 $ 830,189 $ 830,189 $ 830,189 $ -
Resources (inflows):

Use of money 101,751 101,751
Other 3,765,879 1,317,315 1,272,413 (44,902)
Transfer In 73,685 73,685 (73,685)
Amount available for appropriation 3,839,564 1,391,000 1,374,164 (16,836) Charges to appropriations (outflows):

Public works 74,298 170,164 162,670 7,494
Capital outlay 1,990,000 1,990,000 90,000 1,900,000
Total charges to appropriations 2,064,298 2,160,164 252,670 1,907,494 Excess of resources over (under)
charges to appropriations 1,775,266 (769,164) 1,121,494 1,890,658 Fund balance, June 30 $ 2,605,455 $ 61,025 $ 1,951,683 $ 1,890,658 Budgeted Amounts
74 City of Artesia
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual SB1
For the fiscal year ended June 30, 2025
Variance with
Final Budget
Actual Positive/
Original Final Amounts (Negative)
Fund balance, July 1 $ 768,625 768,625 $ 768,625 $ - $
Resources (inflows):

Intergovernmental 421,967 414,012 445,942 31,930
Use of money and property 35,000 35,000 48,751 13,751
Amount available for appropriation 456,967 449,012 494,693 45,681 Charges to appropriations (outflows):

Public works 300,000 300,000 2,082 297,918
Capital outlay 300,000 300,000 149,485 150,515
Total charges to appropriations 600,000 600,000 151,567 448,433 Excess of resources over (under)
charges to appropriations (143,033) (150,988) 343,126 494,114 Fund balance, June 30 $ 625,592 $ 617,637 $ 1,111,751 $ 494,114 Budgeted Amounts
75 City of Artesia
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Artesia Lighting District
For the fiscal year ended June 30, 2025
Variance with
Final Budget
Actual Positive/
Original Final Amounts (Negative)
Fund balance, July 1 $ 126,535 126,535 $ 126,535 $ - $
Resources (inflows):

Taxes 137,996 137,996 137,177 (819)
Use of money and property 3,819 3,819
Transfers in 64,635 64,635 64,635
Amount available for appropriation 202,631 202,631 205,631 3,000 Charges to appropriations (outflows):

Public Works 202,631 202,631 236,019 (33,388)
Total charges to appropriations 202,631 202,631 236,019 (33,388) Excess of resources over (under)
charges to appropriations (30,388) (30,388)
Fund balance, June 30 $ 126,535 $ 126,535 $ 96,147 $ (30,388) Budgeted Amounts
76 City of Artesia
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Measure M
For the fiscal year ended June 30, 2025
Variance with
Final Budget
Actual Positive/
Original Final Amounts (Negative)
Fund balance, July 1 $ 1,135,881 1,135,881 $ 1,135,881 $ - $ Resources (inflows):

Intergovernmental 319,136 319,136 297,564 (21,572)
Use of money and property 23,000 23,000 69,918 46,918
Amount available for appropriation 342,136 342,136 367,482 25,346 Charges to appropriations (outflows):

Public works 86,600 86,600 22,373 64,227
Capital outlay 300,000 300,000 87,711 212,289
Total charges to appropriations 386,600 386,600 110,084 276,516 Excess of resources over (under)
charges to appropriations (44,464) (44,464) 257,398 301,862 Fund balance, June 30 $ 1,091,417 $ 1,091,417 $ 1,393,279 $ 301,862 Budgeted Amounts
77 City of Artesia
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Metro TOD 4
For the fiscal year ended June 30, 2025
Variance with
Final Budget
Actual Positive/
Original Final Amounts (Negative)
Fund balance, July 1 $ (120,716) $ (120,716) $ (120,716) $ - Resources (inflows):

Intergovernmental 430,997 430,997 177,343 (253,654)
Amount available for appropriation 430,997 430,997 177,343 (253,654) Charges to appropriations (outflows):

Community development 430,997 430,997 116,243 314,754
Total charges to appropriations 430,997 430,997 116,243 314,754 Excess of resources over (under)
charges to appropriations 61,100 61,100
Fund balance, June 30 $ (120,716) $ (120,716) $ (59,616) $ 61,100 Budgeted Amounts
78 City of Artesia
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual C.O.P.S. Grant
For the fiscal year ended June 30, 2025
Variance with
Final Budget
Actual Positive/
Original Final Amounts (Negative)
Fund balance, July 1 $ 308,867 $ 308,867 $ 308,867 $ -
Resources (inflows):

Intergovernmental 185,000 195,000 194,663 (337)
Use of money and property 7,000 7,000 22,708 15,708
Amount available for appropriation 192,000 202,000 217,371 15,371 Charges to appropriations (outflows):

Transfer out (192,000) (304,891) (304,891)
Total charges to appropriations (192,000) (304,891) (304,891) Excess of resources over (under)
charges to appropriations (87,520) 15,371
Fund balance, June 30 $ 308,867 $ 308,867 $ 221,347 $ 15,371 Budgeted Amounts
79 City of Artesia
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Community Facility District
For the fiscal year ended June 30, 2025
Variance with
Final Budget
Actual Positive/
Original Final Amounts (Negative)
Fund balance, July 1 $ 54,520 $ 54,520 $ 54,520 $ -
Resources (inflows):

Taxes 21,356 21,356 27,324 5,968
Use of money and property 1,500 1,500 3,582 2,082
Amount available for appropriation 22,856 22,856 30,906 8,050 Charges to appropriations (outflows):

Community Development 24,000 24,000 24,000
Total charges to appropriations 24,000 24,000 24,000
Excess of resources over (under)
charges to appropriations (1,144) (1,144) 30,906 32,050 Fund balance, June 30 $ 53,376 $ 53,376 $ 85,426 $ 32,050 Budgeted Amounts
80 City of Artesia
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Measure R
For the fiscal year ended June 30, 2025
Variance with
Final Budget
Actual Positive/
Original Final Amounts (Negative)
Fund balance, July 1 $ 440,653 $ 440,653 $ 440,653 $ -
Resources (inflows):

Taxes 281,591 281,591 262,642 (18,949)
Intergovernmental 16,590 16,590
Use of money and property 10,000 10,000 31,132 21,132
Amount available for appropriation 291,591 291,591 310,364 18,773 Charges to appropriations (outflows):

Public works 50,000 62,000 21,498 40,502
Capital outlay 250,000 350,000 5,500 344,500
Total charges to appropriations 300,000 412,000 26,998 385,002 Excess of resources over (under)
charges to appropriations (8,409) (120,409) 283,366 403,775 Fund balance, June 30 $ 432,244 $ 320,244 $ 724,019 $ 403,775 Budgeted Amounts
81 City of Artesia
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Housing Authority
For the fiscal year ended June 30, 2025
Variance with
Final Budget
Actual Positive/
Original Final Amounts (Negative)
Fund balance, July 1 $ 845,479 $ 845,479 $ 845,479 $ -
Resources (inflows):

Use of money and property 104,358 104,358 136,209 31,851 Amount available for appropriation 104,358 104,358 136,209 31,851 Charges to appropriations (outflows):

Community development 98,231 36,049 198,018 (161,969)
Total charges to appropriations 98,231 36,049 198,018 (161,969) Excess of resources over (under)
charges to appropriations 6,127 68,309 (61,809) (130,118) Fund balance, June 30 $ 851,606 $ 913,788 $ 783,670 $ (130,118) Budgeted Amounts
82 City of Artesia
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Cal Fire Urban Grant
For the fiscal year ended June 30, 2025
Variance with
Final Budget
Actual Positive/
Original Final Amounts (Negative)
Fund balance, July 1 $ (19,840) $ (19,840) $ (19,840) $ - Charges to appropriations (outflows):

Public safety 62,545 62,545 59,898 2,647
Total charges to appropriations 62,545 62,545 59,898 2,647 Excess of resources over (under)
charges to appropriations (62,545) (62,545) (59,898) 2,647 Fund balance, June 30 $ (82,385) $ (82,385) $ (79,738) $ 2,647 Budgeted Amounts
83 City of Artesia
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual California Natural Resources Grant
For the fiscal year ended June 30, 2025
Variance with
Final Budget
Actual Positive/
Original Final Amounts (Negative)
Fund balance, July 1 $ (29,762) $ (29,762) $ (29,762) $ - Resources (inflows):

Intergovernmental 2,150,000 2,150,000 1,046,636 (1,103,364) Amount available for appropriation 2,150,000 2,150,000 1,046,636 (1,103,364) Charges to appropriations (outflows):

Parks and recreation 2,057,500 1,950,755 756,507 1,194,248 Capital outlay 32,907 549,371 (516,464)
Total charges to appropriations 2,057,500 1,983,662 1,305,878 677,784 Excess of resources over (under)
charges to appropriations 92,500 166,338 (259,242) (425,580) Fund balance, June 30 $ 62,738 $ 136,576 $ (289,004) $ (425,580) Budgeted Amounts
84 City of Artesia
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual HUD
For the fiscal year ended June 30, 2025
Variance with
Final Budget
Actual Positive/
Original Final Amounts (Negative)
Fund balance, July 1 $ (16,143) $ (16,143) $ (16,143) $ - Resources (inflows):

Intergovernmental 25,000 30,000 57,833 27,833
Amount available for appropriation 25,000 30,000 57,833 27,833 Charges to appropriations (outflows):

Community development 25,000 30,000 25,204 4,796
Total charges to appropriations 25,000 30,000 25,204 4,796 Excess of resources over (under)
charges to appropriations 32,629 32,629
Fund balance, June 30 $ (16,143) $ (16,143) $ 16,486 $ 32,629 Budgeted Amounts
85 86
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DESCRIPTION OF STATISTICAL

SECTION CONTENTS
June 30, 2024
This part of the City of Artesia’s comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information say about the government’s overall financial health.

Contents: Pages
Financial Trends theses schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time. 87
Revenue Capacity these schedules contain information to help the reader assess the City’s most significant local revenue source, the property tax. 93 Debt Capacity these schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future. 98
Demographic and Economic Information these schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place. 102
Operating Information these schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it performs. 104 Note: Unless otherwise noted, the information in these schedules is derived from the annual comprehensive financial reports for the relevant year. Property tax information is sourced from the Los Angeles County Auditor-Controller's Office. Demographic and economic statistics are based on data from the California Department of Finance, U.S. Census Bureau, and the State of California Employment Development Department. 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Governmental activities
Net Investment in capital assets $ 23,993,612 $ 23,272,375 $ 22,965,519 $ 25,467,097 $ 28,076,375 $ 27,346,667 $ 27,624,448 $ 27,576,533 $ 29,833,801 $ 32,047,928 Restricted 2,034,880 2,158,867 3,826,127 4,807,246 4,785,320 5,581,108 6,558,200 8,952,613 8,600,698 9,918,277 Unrestricted 4,763,585 6,065,087 2,096,004 (721,612) (4,189,985) (2,852,730) 2,223,210 1,680,806 6,281,938 6,818,180 Total governmental activities net position 30,792,077 $ $ 31,496,329 $ 28,887,650 $ 29,552,731 $ 28,671,710 $ 30,075,045 $ 36,405,858 $ 38,209,952 $ 44,716,437 $ 48,784,385 Business-type activities
Net Investment in capital assets $ 658,243 - $ $ 623,339 $ 640,474 $ 594,223 $ 541,831 $ 489,439 $ 437,048 $ - $ - Unrestricted 56,125 964,577 1,285,535 944,193 695,311 971,123 851,251 786,387 - - Total business-type activities net assets $ 56,125 $ 1,622,820 $ 1,908,874 $ 1,584,667 $ 1,289,534 $ 1,512,954 $ 1,340,690 $ 1,223,435 $ - $ - Total net assts
Net Investment in capital assets $ 23,993,612 $ 23,930,618 $ 23,588,858 $ 26,107,571 $ 28,670,598 $ 27,888,498 $ 28,113,887 $ 28,013,581 $ 29,833,801 $ 32,047,928 Restricted 2,034,880 2,158,867 3,826,127 4,807,246 4,785,320 5,581,108 6,558,200 8,952,613 8,600,698 9,918,277 Unrestricted 4,819,710 7,029,664 3,381,539 222,581 (3,494,674) (1,881,607) 3,074,461 2,467,193 6,281,938 6,818,180 Total net assets $ 30,848,202 $ 33,119,149 $ 30,796,524 $ 31,137,398 $ 29,961,244 $ 31,587,999 $ 37,746,548 $ 39,433,387 $ 44,716,437 $ 48,784,385 Fiscal Year

CITY OF ARTESIA, CALIFORNIA
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
($5,000,000)
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
$45,000,000
$50,000,000
Total invested in capital assets, net of related debt Total net position-restricted Total net position-unrestricted 87 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Expenses
Governmental activities:

General government $ 2,458,793 $ 2,641,676 $ 2,522,576 $ 3,955,102 $ 4,187,313 $ 4,523,432 $ 3,854,973 $ 3,310,279 $ 4,264,141 $ 4,651,889 Public safety 3,376,566 3,515,581 3,803,083 4,160,102 5,006,881 3,792,862 4,542,434 4,671,915 5,152,508 5,087,236 Parks and recreation 1,258,541 1,428,523 1,341,013 1,174,728 1,459,468 1,148,427 1,973,429 1,403,087 1,713,630 2,845,401 Public works 2,308,478 2,110,642 2,244,145 2,063,743 2,179,759 2,685,133 2,466,739 2,914,580 3,499,726 4,653,627 Community development 578,618 746,761 544,246 724,973 1,009,598 1,006,978 1,325,713 2,533,642 2,280,851 2,674,419 Interest on long-term debt 15,228 - - - - - - - - -
Total governmental activities expenses 9,996,224 10,443,183 10,455,063 12,078,648 13,843,019 13,156,832 14,163,288 14,833,503 16,910,856 19,912,572 Business-type activities:

Residential refuse 376,870 - - - - - - - - -
Parking - 162,474 174,845 261,551 200,947 149,334 239,508 203,441 - - Artesia Town Center - 156,476 252,972 279,667 258,058 177,918 543,755 219,648 - - Total business-type activities expenses 376,870 318,950 427,817 541,218 459,005 327,252 783,263 423,089 - - Total expenses $ 10,373,094 $ 10,762,133 $ 10,882,880 $ 12,619,866 $ 14,302,024 $ 13,484,084 $ 14,946,551 $ 15,256,592 $ 16,910,856 $ 19,912,572 Program revenues
Governmental activities:

Charges for services:

General government $ 551,206 $ 686,391 $ 598,180 $ 636,224 $ 486,898 $ 562,013 $ 404,801 $ 1,118,242 $ 972,461 $ 1,462,088 Public safety 762,385 245,713 175,612 206,202 - - - - - - Parks and recreation 74,013 62,575 49,693 124,268 34,427 34,427 53,703 87,352 106,835 106,835 Public works 242,516 - - 103,130 57,463 57,463 61,265 - - - Community development 58,606 69,714 95,836 58,441 492,762 492,762 653,815 975,566 1,592,626 598,940 Operating grants and contributions 1,763,400 1,294,978 1,323,627 919,724 1,408,966 1,381,708 1,623,044 1,864,706 1,393,028 1,402,278 Capital grants and contributions - 675,007 675,007 1,393,213 1,639,598 4,065,409 7,843,268 1,248,758 4,579,342 4,434,958 Total governmental activities program revenues 3,452,126 3,034,378 2,917,955 3,441,202 4,120,114 6,593,782 10,639,896 5,294,624 8,644,292 8,005,099 Business-type activities:

Charges for services - Residential Refuse 398,788 7,578 7,387 3,935 - - - - - - Charges for services - Parking - 238,450 163,427 208,646 120,292 175,610 164,295 77,730 - - Charges for services - Artesia Towne Center - 486,297 543,057 482,621 403,107 375,062 446,704 228,104 - - Total business-type activities program revenues 398,788 732,325 713,871 695,202 523,399 550,672 610,999 305,834 - - Total program revenues $ 3,850,914 $ 3,766,703 $ 3,631,826 $ 4,136,404 $ 4,643,513 $ 7,144,454 $ 11,250,895 $ 5,600,458 $ 8,644,292 $ 8,005,099 Net (expense) revenue
Total net expense $ (6,522,180) $ (6,995,430) $ (7,251,054) $ (8,483,462) $ (9,658,511) $ (6,339,630) $ (3,695,656) $ (9,656,134) $ (8,266,564) $ (11,907,473) General revenues
Taxes:

Property taxes, levied for general purpose $ 1,778,796 $ 1,846,489 $ 1,809,817 $ 1,896,335 $ 1,999,302 $ 2,085,778 $ 2,146,321 $ 2,278,334 $ 2,426,156 $ 2,535,284 Transient occupancy taxes 553,188 512,631 423,928 391,137 434,010 406,026 410,567 595,622 626,137 594,972 Sales taxes 3,038,340 3,784,651 3,690,349 4,137,499 3,989,411 3,272,693 5,551,693 5,310,565 5,505,982 6,572,790 Franchise taxes 2,696,612 706,034 766,423 846,786 893,480 888,495 909,908 143,740 207,367 993,686 Business license taxes 518,569 545,391 618,198 650,117 614,271 682,807 525,901 884,681 818,066 1,024,268 Other taxes 192,493 176,636 79,847 22,008 13,391 - - - 930,602 756,301 Motor vehicle licence fee collection in excess 6,798 7,563 8,852 - - - - - - - Use of money and property 548,037 318,332 462,724 712,384 372,674 371,655 100,488 724,831 2,289,377 1,807,068 Other 12,686 41,075 94,258 168,070 165,818 258,931 209,327 1,405,200 745,928 1,691,052 Transfer-In - - - - - - - - 1,223,434 -
Contribution from Successor Agency - 1,283,731 - - - - - - - - Total governmental activities 9,345,519 9,222,533 7,954,396 8,824,336 8,482,357 7,966,385 9,854,205 11,342,973 14,773,049 15,975,421 (Continued)

CITY OF ARTESIA, CALIFORNIA
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
88 (Continued)
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
General revenues (cont'd)
Business-type activities:

Transfer-Out - - - - - - - (1,223,434) - -
Change in net position
Governmental activities $ 2,801,421 $ 1,813,728 $ 417,288 $ 186,890 $ (1,240,548) $ 1,403,335 $ 6,330,813 $ 1,804,094 $ 6,506,485 $ 4,067,948 Business-type activities 21,918 413,375 286,054 153,984 64,394 223,420 (172,264) (117,255) - - Total changes in net position $ 2,823,339 $ 2,227,103 $ 703,342 $ 340,874 $ (1,176,154) $ 1,626,755 $ 6,158,549 $ 1,686,839 $ 6,506,485 $ 4,067,948 Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year

CITY OF ARTESIA, CALIFORNIA
Changes in Net Position
($2,000,000)
($1,000,000)
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Change in net position-governmental activities 89 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
General fund
Nonspendable $ 19,505 $ 29,805 $ 22,301 $ 23,664 $ 28,735 $ 21,901 $ 88,581 $ 243,022 $ 636,952 $ 107,140 Restricted - - - - - - - - - -
Committed 6,400,000 6,400,000 7,007,490 7,007,490 7,015,296 5,315,000 5,315,000 5,315,000 5,315,000 5,516,877 Assigned 2,595,240 4,689,393 1,533,000 1,533,000 1,893,000 977,782 1,215,485 1,215,485 1,215,485 2,092,370 Unassigned - (1,674,508) 540,052 (1,729,330) (2,095,348) 729,471 5,151,404 4,719,920 7,109,758 7,715,294 Total general fund 9,014,745 $ 9,444,690 $ 9,102,843 $ 6,834,824 $ 6,841,683 $ 7,044,154 $ 11,770,470 $ 11,493,427 $ 14,277,195 $ 15,431,681 $ All other governmental funds
Nonspendable - - 7,063 $ - 7,063 $ 8,063 $ 8,628 $ 20,000 $ 102,413 $ - $ Restricted 2,641,091 $ 2,721,910 $ 3,752,819 4,683,336 $ 4,778,257 6,058,271 7,557,559 9,248,944 10,000,360 11,439,354 Assigned - - 2,043,148 1,998,832 1,349,697 1,367,839 1,371,179 984,954 1,523,514 857,636 Unassigned 676,056 2,025,342 (111,549) (245,811) (1,785,026) (333,862) (188,097) (59,076) (219,506) (450,147) Total all other governmental funds 3,317,147 $ 4,747,252 $ 5,691,481 $ 6,436,357 $ 4,349,991 $ 7,100,311 $ 8,749,269 $ 10,194,822 $ 11,406,781 $ 11,846,843 $

CITY OF ARTESIA, CALIFORNIA
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Fund balances-general fund Fund balances-all other governmental funds 90 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Revenues
Taxes $ 8,784,799 $ 7,579,396 $ 7,397,414 $ 7,958,208 $ 8,887,075 $ 8,315,947 $ 10,393,960 $ 10,460,337 $ 10,790,577 $ 12,699,734 Licenses and permits 542,950 473,916 528,133 538,854 492,762 607,207 525,901 815,390 1,371,826 1,037,486 Intergovernmental 2,302,769 3,377,426 1,896,778 2,310,757 2,101,017 4,524,776 8,090,841 1,866,069 4,765,501 4,621,117 Charges for services 1,046,288 257,088 286,227 383,209 434,132 524,210 1,082,055 1,365,770 1,300,096 2,124,063 Use of money and property 548,034 318,331 462,724 712,384 372,674 371,655 100,488 724,831 2,289,377 1,807,068 Fines and forfeitures 40,883 163,675 156,981 206,202 144,656 15,248 91,529 186,566 193,510 134,509 Developer fees 58,606 69,713 - - - - - 930,602 - -
Other 12,685 41,075 94,258 168,070 165,818 258,931 209,327 1,218,634 552,418 1,556,543 Total revenues 13,337,014 12,280,620 10,822,515 12,277,684 12,598,134 14,617,974 20,494,101 16,637,597 22,193,907 23,980,520 Expenditures
General government 2,337,561 2,339,459 2,685,531 3,613,960 3,099,787 3,375,189 3,514,451 3,975,649 4,503,604 4,891,848 Public safety 3,337,065 3,494,997 3,766,241 4,154,411 5,003,531 3,792,357 4,542,434 4,671,915 5,152,508 5,076,227 Parks and recreation 1,115,548 1,290,766 1,200,310 1,062,510 1,266,334 950,685 1,744,549 1,170,687 1,482,374 2,556,518 Public works 1,367,346 1,267,791 1,444,231 1,248,253 1,002,890 1,028,631 1,600,183 1,973,188 2,556,230 3,635,167 Community development 578,618 746,761 544,246 724,973 1,009,598 1,006,978 1,325,713 2,533,642 2,280,851 2,674,419 Capital outlay 3,762,730 766,558 579,574 3,474,911 4,015,028 1,151,343 1,391,497 1,144,006 3,009,000 3,551,793 Debt service: -
Principal 50,476 - - - - - - - - -
Interest and fiscal charges 15,228 - - - - - - - - -
Cost of issuance - - - - - - - - - -
Total expenditures 12,564,572 9,906,332 10,220,133 14,279,018 15,397,168 11,305,183 14,118,827 15,469,087 18,984,567 22,385,972 Excess of revenues over
(under) expenditures 772,442 2,374,288 602,382 (2,001,334) (2,799,034) 3,312,791 6,375,274 1,168,510 3,209,340 1,594,548 (Continued)

CITY OF ARTESIA, CALIFORNIA
(modified accrual basis of accounting)
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
91 (Continued)
Other financing sources (uses) 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Transfers in $ 4,317,595 $ 45,402 $ 35,597 $ 629,791 $ 519,598 $ 113,023 $ 4,131,550 $ 284,438 $ 1,137,218 $ 888,851 Transfers out (4,317,595) (603,484) (35,597) (151,600) (160,071) (113,023) (4,131,550) (284,438) (350,831) (888,851) Bond discount - - - - - - - - - -
Long-term debt issued - - - - - - - - - -
Total other financing
sources (uses (558,082) - 478,191 - 359,527 - - 786,387 - - Extraordinary loss from dissolution
of Redevelopment Agency - - - - - - - - - -
Net changes in fund balances 772,442 $ $ 1,816,206 $ 602,382 $ (1,523,143) $ (2,439,507) $ 3,312,791 $ 6,375,274 $ 1,168,510 $ 3,995,727 $ 1,594,548 Debt service as a percentage of
noncapital expenditures 0.7% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

CITY OF ARTESIA, CALIFORNIA
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%
$(3,000,000)
$(2,000,000)
$(1,000,000)
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Net Changes in Fund Balances Debt Service as a Percentage to Noncapital Expenditures 92 Fiscal Transient Property Business Franchise Other
Year Property Taxes Sales Taxes Occupancy Taxes Transfer Taxes License Taxes Taxes Taxes Total 2016 1,778,796 3,038,340 520,533 32,655 518,569 2,696,612 192,493 8,777,998 2017 1,792,172 3,784,651 512,631 54,317 545,391 706,034 184,200 7,579,396 2018 1,752,303 3,690,349 423,928 57,514 618,198 766,423 88,699 7,397,414 2019 1,844,788 4,137,499 391,137 51,547 650,117 846,786 36,334 7,958,208 2020 1,999,302 3,989,411 434,010 42,690 614,271 893,480 13,391 7,986,555 2021 2,085,778 3,272,693 406,026 43,545 682,807 888,495 7,379,344 - 2022 2,146,321 5,551,693 410,567 79,540 525,901 909,908 770,030 10,393,960 2023 2,197,203 5,310,565 595,622 81,131 884,681 143,740 1,247,395 10,460,337 2024 2,426,156 5,505,982 626,137 44,504 818,066 995,662 374,070 10,790,577 2025 2,471,994 6,572,790 594,972 63,290 1,024,268 993,686 756,301 12,477,301

CITY OF ARTESIA, CALIFORNIA
General Governmental Tax Revenues by Source
Last Ten Fiscal Years
(modified accrual basis of accounting)
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$9,000,000
$10,000,000
$11,000,000
$12,000,000
$13,000,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Property Taxes Sales Taxes Transient Occupancy Taxes Property Transfer Taxes Business License Taxes Franchise Taxes Other 93 Total
Fiscal Effective
Year Secured Nonunitary Unsecured Total Rate (2)
2016 1,444,454,184 - 35,572,647 1,480,026,831 0.6571%
2017 1,504,821,751 - 38,979,785 1,543,801,536 0.6573%
2018 1,589,872,425 - 38,378,560 1,628,250,985 0.6573%
2019 1,672,317,291 - 39,091,161 1,711,408,452 0.6582%
2020 1,764,086,354 - 40,248,565 1,804,334,919 0.6585%
2021 1,841,922,554 - 40,456,330 1,882,378,884 0.6587%
2022 1,899,479,654 - 37,538,774 1,937,018,428 0.6590%
2023 2,018,889,130 - 37,268,831 2,056,157,961 0.6593%
2024 2,149,081,067 - 40,484,323 2,189,565,390 0.6596%
2025 2,239,670,290 - 48,381,744 2,288,052,034 0.6598%
(1) Net of exemptions
Source: Los Angeles County/Hdl Companies
Assessed Value (1)

CITY OF ARTESIA, CALIFORNIA
Assessed Value of Taxable Property
Last Ten Fiscal Years
(2) Because of California's complicated taxing structure where different values are taxed at different rates due to Proposition 13 and Redevelopment dissolution statutes, we have used an effective rate. The rate has been calculated by dividing total revenue for the government preparing the statistical section by the total revenue base. $0
$100,000,000
$200,000,000
$300,000,000
$400,000,000
$500,000,000
$600,000,000
$700,000,000
$800,000,000
$900,000,000
$1,000,000,000
$1,100,000,000
$1,200,000,000
$1,300,000,000
$1,400,000,000
$1,500,000,000
$1,600,000,000
$1,700,000,000
$1,800,000,000
$1,900,000,000
$2,000,000,000
$2,100,000,000
$2,200,000,000
$2,300,000,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Secured assessed value Nonunitary assessed value Unsecured assessed value 94 Total
Fiscal Effective
Year Residential Commercial Industrial Other Total Rate (2) 2016 1,009,152,736 329,584,977 52,095,299 89,193,819 1,480,026,831 0.6571% 2017 1,058,706,264 338,230,423 52,874,890 93,989,959 1,543,801,536 0.6573% 2018 1,119,486,714 356,504,771 55,586,834 96,672,666 1,628,250,985 0.6573% 2019 1,180,780,891 370,883,525 59,402,802 100,341,234 1,711,408,452 0.6582% 2020 1,252,584,691 391,879,135 62,474,763 97,396,330 1,804,334,919 0.6585% 2021 1,313,136,749 407,314,525 63,675,586 98,252,024 1,882,378,884 0.6587% 2022 1,365,326,692 409,261,464 64,579,385 97,850,887 1,937,018,428 0.6590% 2023 1,447,244,217 427,658,253 66,447,381 114,808,110 2,056,157,961 0.6593% 2024 1,535,428,217 452,411,924 79,671,254 122,053,995 2,189,565,390 0.6596% 2025 1,628,242,847 463,899,049 80,805,197 115,104,941 2,288,052,034 0.6598% (1) Net of exemptions
Source: Los Angeles County/Hdl Companies
Assessed Value (1)

CITY OF ARTESIA, CALIFORNIA
Assessed Value of Taxable Property by Use
Last Ten Fiscal Years
(2) Because of California's complicated taxing structure where different values are taxed at different rates due to Proposition 13 and Redevelopment dissolution statutes, we have used an effective rate. The rate has been calculated by dividing total revenue for the government preparing the statistical section by the total revenue base. $0
$100,000,000
$200,000,000
$300,000,000
$400,000,000
$500,000,000
$600,000,000
$700,000,000
$800,000,000
$900,000,000
$1,000,000,000
$1,100,000,000
$1,200,000,000
$1,300,000,000
$1,400,000,000
$1,500,000,000
$1,600,000,000
$1,700,000,000
$1,800,000,000
$1,900,000,000
$2,000,000,000
$2,100,000,000
$2,200,000,000
$2,300,000,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Residential Commercial Industrial Other
95 Community Total
Fiscal Basic Detention Flood School College Water Effective Year Levy (2) Facilities Control Total District (3) District (4) District Rate (5) 2016 1.0000 0.0000 0.0000 0.0000 0.0324 0.0483 0.0035 0.6571% 2017 1.0000 0.0000 0.0000 0.0000 0.0313 0.0470 0.0035 0.6573% 2018 1.0000 0.0000 0.0000 0.0000 0.0311 0.0437 0.0035 0.6573% 2019 1.0000 0.0000 0.0000 0.0000 0.0302 0.0445 0.0035 0.6582% 2020 1.0000 0.0000 0.0000 0.0000 0.0819 0.0445 0.0035 0.6585% 2021 1.0000 0.0000 0.0000 0.0000 0.0890 0.0435 0.0035 0.6587% 2022 1.0000 0.0000 0.0000 0.0000 0.0766 0.0425 0.0035 0.6590% 2023 1.0000 0.0000 0.0000 0.0000 0.0793 0.0436 0.0035 0.6593% 2024 1.0000 0.0000 0.0000 0.0000 0.0751 0.0423 0.0035 0.6596% 2025 1.0000 0.0000 0.0000 0.0000 0.0664 0.0649 0.0070 0.6598% (1) Per $100 of assessed value
District ($0.19), Educational Rev Aug. Fund($0.203) and other agencies ($0.028). (3) ABC Unified School District .
(4) Cerritos Community College District .

Source: Los Angeles County/Hdl Companies .
(5) Because of California's complicated taxing structure where different values are taxed at different rates due to Proposition 13 and Redevelopment dissolution statutes, we have used an effective rate. The rate has been calculated by dividing total revenue for the government preparing the statistical section by the total revenue base.

County
(2) Basic levy for City ($0.067), County ($0.329), LA Consolidated Fire District ($0.183), ABC Unified School

CITY OF ARTESIA, CALIFORNIA
Direct and Overlapping Property Tax Rates (1)
Last Ten Fiscal Years
(Rate per $100 of Assessed Value)

0.0000

0.1000

0.2000

0.3000

0.4000

0.5000

0.6000

0.7000

0.8000

0.9000

1.0000

1.1000

1.2000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Basic Levy County School District Community College Water District 96 CITY OF ARTESIA, CALIFORNIA
Principal Property Owners
June 30, 2025
Percentage of Percentage of
Taxable Total Taxable Taxable Total Taxable
Primary Assessed Assessed Assessed Assessed
Taxpayer Use Value Rank Value (1) Value Rank Value (1)
Eaves Artesia LP Residential 36,640,397 $ 1 1.60% 31,127,274 1 1.38% Artesia Partners LLC Commercial 35,350,000 2 1.54% 29,266,757 2 1.98% YSM Investment No 3 LLC Commercial 35,250,000 3 1.54% 21,850,000 3 0.97% Pioneerlux Associates, LP Commercial 22,313,656 4 0.98% - - - 183 Pioneer and Arline LLC Residential 19,551,172 5 0.85% - - - NNC WP 186th Street LLC Residential 16,557,814 6 0.72% - - - 11900 East Artesia Boulevard LLC Institutional 16,056,856 7 0.70% 13,627,321 7 0.92% Maya Inn and Suites Commercial 15,092,313 8 0.66% - - - Haw Lay I LLC Commercial 14,425,287 9 0.63% 12,245,633 8 0.83% La Belle Chateau LLC Residential 11,782,842 10 0.51% - - - California Milk Producers Industrial - - - 15,674,954 4 1.06% Realty Specialties Inc Commercial - - - 14,510,605 5 0.98% BSREP Socal 91 Freeway LLC Commercial - - - 14,183,716 6 0.63% Egari Family Trust Commercial - - - 10,758,122 9 0.73%
Eastland Estate LLC Commercial - - - 10,020,690 10 0.68% Total 223,020,337 $ 9.75% 173,265,072 $ 10.15%
(1) Total assessed valuation of taxable property exclusive of exemptions.

Source: Los Angeles County/Hdl Companies
2025 2016
Principal Property Owners
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
$80,000,000
$90,000,000
$100,000,000
$110,000,000
$120,000,000
$130,000,000
2025 2016
Institutional Commercial Industrial Residential
97 Fiscal Year Taxes Levied Collections in
Ended for the Percent of Subsequent Percent of
June 30, Fiscal Year (2) Amount (2) Levy Years Amount Levy 2016 844,497 732,978 86.8% N/A N/A N/A
2017 870,625 870,625 100.0% N/A N/A N/A
2018 912,132 903,094 99.0% N/A N/A N/A
2019 955,470 933,541 97.7% N/A N/A N/A
2020 996,741 970,140 97.3% N/A N/A N/A
2021 1,039,175 1,005,854 96.8% N/A N/A N/A
2022 1,074,233 1,063,592 99.0% N/A N/A N/A
2023 1,138,723 1,077,769 94.6% N/A N/A N/A
2024 1,161,497 1,158,016 99.7% N/A N/A N/A
2025 1,239,154 1,224,342 98.8% N/A N/A N/A
(1) Includes only City general property taxes of the General Fund (2) Includes secured and unsecured property tax levies exclusive of homeowner exemption (3) Los Angeles County does not provide detail of prior year collections. Therefore, the information about subsequent collections is not available.

Source: Los Angeles County.

CITY OF ARTESIA, CALIFORNIA
Property Tax Levies and Collections (1)
Last Ten Fiscal Years
Fiscal Year of Levy
Collected within the
Total Collections to Date
Note (3)
98 Percentage of Percentage of
Fiscal Tax Allocation Capital Personal Debt
Year Bonds (2) Notes Leases Total Income (1) Per Capita (1) 2016 - - 97,908 97,908 369.89% 17.24%
2017 - - - - 0.00% 0.00%
2018 - - - - 0.00% 0.00%
2019 - - - - 0.00% 0.00%
2020 - - - - 0.00% 0.00%
2021 - - - - 0.00% 0.00%
2022 - - - - 0.00% 0.00%
2023 - - - - 0.00% 0.00%
2024 - - - - 0.00% 0.00%
2025 - - - - 0.00% 0.00%
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. (1) See Demographic Statistics on Demographic and Economic Statistics Schedule (2) Due to the dissolution of the Artesia Redevelopment Agency, the debt related to tax allocation bonds is no longer reported in this table.

Outstanding Debt by Type-Last Ten Fiscal Years

CITY OF ARTESIA, CALIFORNIA
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Tax Allocation Bonds Revenue Bonds Notes Capital Leases Certificates of Participation 99 CITY OF ARTESIA, CALIFORNIA
Computation of Direct and Overlapping Bonded Debt
As of June 30, 2025
2024-25 Assessed Valuation $ 2,288,052,034
Net General
Activities Bonded Percentage Amount
and Capital Lease Applicable to Applicable to
Jurisdiction Debt Outstanding City of Artesia(1) City of Artesia Overlapping Tax and Assessment Debt:

Metropolitan Water District 17,155,000 $ 0.056% 9,607 $ Cerritos Community College District 510,110,300 3.548% 18,098,713 ABC Unified School District 175,060,042 11.153% 19,524,446 Total Direct and Overlapping Tax and Assessment Debt $ 37,632,766 Overlapping General Fund Debt:

Los Angeles County General Fund Obligations 3,036,637,390 $ 0.109% 3,309,935 $ Los Angeles Superintendent of Schools
Certificates of Participation 2,331,775 0.109% 2,542
City of Artesia - -
Total Direct and Overlapping Tax and Assessment Debt $ 3,312,477 Overlapping Tax Increment Debt (Successor Agencies): 11,602,520 $ 100% 11,602,520 $ Total Direct Debt -
Total Overlapping Debt 52,547,763 $
Combined Total Debt $ 52,547,763
Notes:
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value. (2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation bonds and 100
Total Debt Limitation- Total Debt
Fiscal Assessed Add Assessed 15% of Total Applicable Legal Year Value Exemptions Value Assessed Value to Limitation Debt Margin 2016 1,480,026,831 6,276,033 1,486,302,864 222,945,430 - 222,945,430 2017 1,543,801,536 6,276,033 1,550,077,569 232,511,635 - 232,511,635 2018 1,628,250,985 6,276,033 1,634,527,018 245,179,053 - 245,179,053 2019 1,711,408,452 6,276,033 1,717,684,485 257,652,673 - 257,652,673 2020 1,804,334,919 6,533,855 1,810,868,774 271,630,316 - 271,630,316 2021 1,882,378,884 6,451,377 1,888,830,261 283,324,539 - 283,324,539 2022 1,937,018,428 4,799,444 1,941,817,872 291,272,681 - 291,272,681 2023 2,056,157,961 6,451,377 2,062,609,338 309,391,401 - 309,391,401 2024 2,189,565,390 7,280,026 2,196,845,416 329,526,812 - 329,526,812 2025 2,288,052,034 7,173,902 2,295,225,936 344,283,890 - 344,283,890

CITY OF ARTESIA, CALIFORNIA
Legal Debt Margin Information
Last Ten Fiscal Years
Assessed Valuations Legal Debt Margin
-
25,000,000
50,000,000
75,000,000
100,000,000
125,000,000
150,000,000
175,000,000
200,000,000
225,000,000
250,000,000
275,000,000
300,000,000
325,000,000
350,000,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Legal debt margin Debt limitation
101
Year Population (1)
2016 16,883
2017 16,816
2018 16,792
2019 16,919
2020 16,490
2021 16,484
2022 16,226
2023 16,093
2024 16,019
2025 16,359
Personal Per Capita
Income(2) Personal
Year ($ Thousand) Income(2)
2016 362,149 21,450
2017 369,249 21,958
2018 377,241 22,465
2019 383,243 22,651
2020 405,497 24,590
2021 411,323 24,952
2022 426,436 26,281
2023 456,631 28,374
2024 483,554 30,186
2025 503,084 30,752
Unemployment
Year Rate (2)
2016 4.1%
2017 3.2%
2018 2.7%
2019 2.8%
2020 3.6%
2021 11.5%
2022 8.8%
2023 6.2%
2024 6.3%
2025 7.8%

(1) State Department of Finance.
(2) HdL, Coren & Cone.

Last Ten Fiscal Years
Last Ten Fiscal Years

CITY OF ARTESIA, CALIFORNIA
Demographic and Economic Statistics
Last Ten Fiscal Years
0 2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 ($ Million) Personal Income Per Capita Personal Income

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

11.0%

12.0%
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
102
Employer Employees Rank
Percentage
of Total City
Employment Employees Rank
Percentage
of Total City
Employment
Automobile Club of Southern California 1 50 10.27% 52 6 2.46% CITY OF ARTESIA 2 39 8.01%
CARE MERIDIAN 3 29 5.95%
TSANG & ASSOCIATES, A PROFESSIONAL LAW CORPORATION 4 23 4.72% SK ENTER BKING PR INC TX AUDIT PRES 5 21 4.31%
ANGELES INSTITUTE, LLC 6 20 4.11%
NURSES PLUS HOSPICE INC 7 14 2.87%
KUMON MATH & READING CENTER OF ARTESIA 8 12 2.46%
SAGE M. HUMPHRIES D.D.S, M.S. 9 12 2.46%
Artesia Christian Homes, Inc 1 139 6.56%
Tawa Supermarket, Inc 2 93 4.39%
California Dairies, Inc. 3 90 4.25%
Stater Bros. Market 4 81 3.82%
Prime Grill Corporation 5 62 2.93%
Dejon Enterprises 7 52 2.46%
Don Jose Restaurant 8 50 2.36%
Aspen Healthcare Corporation 9 48 2.27%
Hygieia Home Health Corpoation 10 43 2.03%
AMBITIONS CALIFORNIA INC 10 10 2.05%

47.23% 710 230 33.52%
Total number of employees 487 5,641
Number of businesses 899 1,054

Source: Finance Department, HdL
2016

CITY OF ARTESIA, CALIFORNIA
As of June 30, 2025
Principal Employers
2025
103
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Total Total Total Total Total Total Total Total Total Total General government 19.00 16.29 15.01 19.60 19.00 20.00 20.00 22.00 16.00 16.00 Community development - 5.88 8.33 3.00 4.00 4.00 4.00 4.00 7.90 7.90 Public works 7.00 2.93 3.03 7.00 7.00 6.00 6.00 7.00 8.00 8.00 Public safety 2.85 0.95 2.22 4.38 3.90 4.90 4.90 1.90 - - Parks and recreation 8.00 10.95 11.46 9.15 10.15 9.40 9.40 7.40 7.40 7.40 Total full-time equivalent positions 36.85 37.00 40.05 43.13 44.05 44.30 44.30 42.30 39.30 39.30 Source: Finance Department

CITY OF ARTESIA, CALIFORNIA
Full-time Equivalent City Government Employees by Function Last Ten Fiscal Years
General government ,

16.00 Community
development , 7.90
Public works , 8.00
Public safety , -
Parks and recreation ,

7.40 Fiscal Year 2025
104
2023 (2)
2024 2025
General Government
City Council
Regular Election 1 - 1
Ballot Measures Processed 0 0 2
Ordinances Processed 18 8 15
Resolutions Processed 57 49 58
Public Records Requests Processed 151 211 263
Public Meetings Held 36 42 37
Business Licenses issued 1,165 1,225 1,231
Passports
Accepted 457 442 530
Finance
Payroll Checks Issued 1,134 1,217 1,277
Accounts Payable Checks Issued 1,778 1,688 1,489
Purchase Orders Issued 83 199 137
Community Development
Building Permits Issued 716 835 434
Planning Reviews 656 437 123
Park and Recreation
Facility Use Permits 46 30 34
Field Use Permits 4 3 4
Number of Youth Programs 14 15 19
Number of Adult Programs 7 10 11
Number of Senior Programs 4 4 11
Number of Family Excursions 5 13 3
Number of Senior Excursions 12 13 13
Number of Teen Excursions 5 4 2
Special Events 44 25 40
Public Works
Tons collected 7 14 13
Illegal Dumping Pick-Up 246 437 422
Number of Graffiti Removal Locations 1,040 1,352 1,645
Vines Trimmed (in linear feet) 65,076 65,076 53,800
Public Safety-Code Enforcement
Number of Parking Violations 5,478 4,652 4,475
Number of Parking Stations Maintained 24 24 24
Number of Code Enforcement Cases 960 577 438
Number of Notices of Violation 1,432 821 580
(1) Information provided by various departments
(2) Information prior to this year is not available

CITY OF ARTESIA, CALIFORNIA
Operating Indicators by Function (1)
Last Three Fiscal Years
105
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
General government
Number of Buildings - City Hall 1 1 1 1 1 1 1 1 1 1
Number of Historical Museums 2 2 2 2 2 2 2 2 2 2
Historical Water Tower 1 1 1 1 1 1 1 1 1 1
General Government Vehicles 2 2 2 2 2 2 2 2 2 2
Park and Recreation
Number of Buildings - Community Centers 5 5 5 5 5 5 5 5 5 5 Number of Buildings - Library 1 1 1 1 1 1 1 1 1 1
Acres of Park Space 16.98 16.98 16.98 16.98 16.98 16.98 16.98 16.98 16.98 16.98 Park Trees 202 202 202 202 202 202 202 202 202 202
Parks 3 3 3 3 3 3 3 3 3 3
Recreation Transit Vehicles 2 2 2 2 2 2 2 2 2 2
Playground Areas 5 5 5 5 5 5 5 5 5 5
Baseball Fields 7 7 7 7 7 7 7 7 7 7
Basketball Courts 3 3 3 3 3 3 3 3 3 3
Roller Hockey Rinks 1 1 1 1 1 1 1 1 1 1
Handball Court 1 1 1 1 1 1 1 1 1 1
Tennis Courts 1 1 1 1 1 1 1 1 1 1
Maintenance/Public works
Number of Buildings 1 1 1 1 1 1 1 1 1 1
Street Trees 1,652 1,652 1,652 1,652 1,652 1,652 1,652 1,652 1,652 1,652 Miles of Streets and Service Roads 30.09 30.09 30.09 30.09 30.09 30.09 30.09 38.33 38.33 38.33 Number of Traffic Signals 25 25 25 25 25 25 25 26 26 26 Number of Street Lights 136 136 136 136 136 136 136 136 136 136 Vehicles 11 11 11 11 11 11 11 11 11 11
Public safety
Number of Parking Pay Stations 28 28 28 28 28 28 28 28 28 28 Public Safety Vehicles 4 4 4 4 4 4 4 4 4 4
(1) Information provided by various departments

CITY OF ARTESIA, CALIFORNIA
Last Ten Fiscal Years
Capital Asset Statistics by Function (1)
106

Artesia City CouncilJanuary 26, 2026

Artesia City Council
January 26, 2026