Bell Gardens City Council
April 27, 2026

Long-Term Obligations (continued)

reported as debt service expe nditures. Consequently, long term debt is shown as a reconciling item in the Reconcil iation of the Governmental Funds Balance Sheet to the Government-wide Statement of Net Position.

In the Government-wide Financ ial Statements, interest pa yable on long-term debt is recognized as the liability is incurred fo r governmental activities and business-type activities. In the Fund Financial Statemen ts, only propriety fund types recognize the interest payable when the liability is incurred.

Fund Balances and Spending Policy

In the Governmental Fund Financial Statemen ts, fund balances ar e classified in the following categories:

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

Restricted – Restricted fund balances encompass the portion of net fund resources subject to externally enforceable legal restrictions. This includes ex ternally imposed restrictions by creditors, such as through debt covenants, grantors, contributions, laws or regulations of other governments, as we ll 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 governme nt imposes upon itself at its highest level of decision making, The City Council is considered the highest authority for the City and approves such commitments th rough council resolutions and/ or similar documents. These committed amounts cannot be used for any other purposes unless the City Council removes or changes the specif ied use through the same type of formal action taken to establish the commitment.

Assigned – Assigned fund balances encompass the portion of net fund resources reflecting the government’s intended use of resources that are ne ither restricted or committed. Assignment of resources can be done by the highest level of decision making (City Council Resolution) or by a committee or official designa ted for that purpose. The City Council has designated the City Manage r for the purpose to assign fund balance for specific departmental projects.
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33 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(1) Organization and Summary of Signif icant Accounting Policies (continued)

d. Assets, Deferred Outflows, Liabilities, Deferred Inflows and Net Position or Equity (cont.)

Fund Balances and Spending Policy (cont.)

Unassigned – The General Fund is the only fund that may report a positive unassigned fund balance amount. In other governmental f unds it is not appropriate to report a positive unassigned fund balance amount. However, in governmental funds other than the General Fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund.

In July 2008, through Reso lution 2008-17, the City Council adopted a fund balance reserve policy. The policy consists of estab lishing an economic contingency reserve by placing liquid cash in a financial institution in compliance with the investment policy in the amount of $1,000,000 commencing Ju ly 1, 2008 and addi ng $200,000 to the established reserve fund each fiscal year thereafter. The City Council’s goal is to achieve a minimum of 10% of the annual General Fund appropriations as committed fund balance in the General Fund.

When both restricted and unrestricted resources are available for use when an expenditure is incurred, it is the City’s policy to use restricted resources first, then unrestricted resources as they are needed. It is the C ity’s policy to consider committed amounts as being reduced first, followed by assigned amounts, and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of those fund balance classifications could be used.

Net Position Flow Assumption

Sometimes the government will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unr estricted resources. In order to calculate the amounts to report as rest ricted – net position and unres tricted – net position in the government-wide and proprietary fund financia l statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the government’s policy to consider restricted – net position to have been depleted before unrestricted – net position is applied.

In the Government-Wide Financial Statements, net position are classified in the following categories: Net Investment in Capital Assets consists of capital assets net of accumulated depreciation and reduced by outstanding de bt that attributed to the acquisition, construction, or improvement of the assets.

Restricted Net Position are restricted by external creditors, grantors, contributors, laws or regulations of other governments. Unrestricted Net position is all net position that do not meet the definition of “net investment in capital assets” or “restricted net position.” ���������������

34 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(1) Organization and Summary of Signif icant Accounting Policies (continued)

d. Assets, Deferred Outflows, Liabilities, Deferred Inflows and Net Position or Equity (cont.)

Fund Balance Flow Assumption

Sometimes the government will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restrict ed, committed, assigned, and unassigned fund balance in the governme ntal fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied. It is the government’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestric ted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last.

e. Leases and Subscription Agreement Leases

Lessee: The City is a lessee for a noncancellabl e lease of equipment. The City recognizes a lease or subscription agreement liability and an intangible right-to-use lease asset (lease asset) in the government-wide financial st atements. The City recognizes lease or subscription agreement liabilities with an initial, individual value of $50,000 or more.

At the commencement of a leas e, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal por tion of lease payments made. The lease asset is initially measured as the initial amount of the lease liabilit y, adjusted for lease payments made at or before the lease comme ncement date, plus ce rtain initial direct costs. Subsequently, the lease asset is amor tized on a straight-line basis over its useful life.

Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments. The City uses th e interest rate charged by the lessor as the discount rate. When the interest rate char ged by the lessor is not provided, the City generally uses its estimated incremental borro wing rate as the discount rate for leases.

The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise.

The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and li ability if certain changes occur that are expected to significantly affect the amount of the lease liability. ���������������

35 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(1) Organization and Summary of Signif icant Accounting Policies (continued)

e. Leases (cont.)
Lease assets are reported with other capital assets and lease liabilities are reported with long-term debt on the Statement of Net Position.

Lessor: The City is a lessor for a noncancellabl e leases of a portion of real property, as well as, building and roof space. The City recognizes a lease receivable and a deferred inflow of resources in the government-wide and governmental fund financial statements.

At the commencement of a leas e, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the prin cipal portion of the lease payments received.

The deferred inflow of resources is initiall y measured as the init ial amount of the lease receivable, adjusted for lease payments rece ived at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term.

Key elements and judgement include how the City determines (1) the discount rate it uses to discount the expected leas e receipts to present value, (2) lease term, and (3) lease receipts. The City uses it estimated incremen tal borrowing rate as the discount rate for leases. The lease term includes the noncancella ble period of the lease. Lease receipts included In the measurement of the lease rece ivable is composed of fixed payments from the lessee.

The City monitors changes th at would require a remeasurem ent of its lease and will remeasure the lease receivable and deferred in flows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable.

e. Use of Estimates

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

f. Pensions

For purposes of measuring the net pension li ability and deferred outflows/inflows of resources related to pensions, and pension e xpense, information a bout the fiduciary net position of the City of Bell Garden’s Califo rnia Public Employees’ Retirement System (CalPERS) plan (Plan) and a dditions 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 contribu tions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
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36 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(1) Organization and Summary of Signif icant Accounting Policies (continued)

g. New Accounting Pronouncements
For the year ended June 30, 2025, the financia l statements include the adoption of GASB Statement No. 101, Compensated Absences. The objective of this statement is to better meet the information needs of financial statement users by updati ng the recognition and measurement guidance for compensated absences . The cumulative effect of adopting this standard was not significant, hence, no restatement of beginni ng net position was required.

(2) Cash and Investments

As of June 30, 2025, cash and investments, including cash and investments with fiscal agent, were reported in the accompanying financial statements as follows:

Governmental activities $25,534,048
Business-type activities 33,640
Fiduciary funds 5,798,147
Total cash and investments $31,365,835

The City of Bell Gardens maintains a cash and investment pool that is available for use for all funds. Each fund type ’s position in the pool is re ported on the combined balance sheet as cash and investments. The City has adopted an investment policy, which authorizes it to invest in various investments.

As of June 30, 2025, the carrying amount of the City’s deposits was $28,501,962 and the bank balance was $29,578,264. The $(1,076,302) difference represents outstanding checks and other reconciling items.

The California Government Code require s California banks and savings and loan associations to secure a City’s deposits by pledging government securities with a value of 110% of a City’s deposits. California law also allows financial institutions to secure City deposits by pledging firs t trust deed mortgage notes havi ng a value of 150% of a City’s total deposits. The City Treasurer may waive the collateral requirement for deposits which are fully insured up to $250,000 by the FDIC. The collateral for deposits in federal and state chartered banks is held in safekeeping by an authorized Agent of Depository recognized by the State of Californ ia Department of Banking. The collateral for deposits with savings and loan associatio ns is generally held in safekeeping by the Federal Home Loan Bank in San Francisco, Cali fornia as an Agent of Depository. These securities are physically he ld in an undivided pool for all California public agency depositors. Under Government Code Sect ion 53655, the placement of securities by a bank or savings and loan association with an “Agent of Depository” has the effect of perfecting the security interest in the name of the local governmental agency. ���������������

37 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(2) Cash and Investments (continued)

Accordingly, all collateral held by California Agents of Depository are considered to be held for, and in the name of, the local governmental agency.

Investments Authorized by th e City’s Investment Policy

Under provision of the City’s investment policy, and in accordance with Section 53600 of the California Government Code, the following investments are authorized:

Maximum Maximum
Maximum Percentage Investment
Investment Types Maturity Of Portfolio in One Issuer

U.S. Treasury Bills, Bonds and Notes 5 years None None
U.S. Government Agency Securities 5 years None None
Bills of Exchange 180 days 40% 15%
Commercial Paper 270 days 40% 15%
Negotiable Certificates of Deposit 5 years 30% 15%
Repurchase Agreements 92 days None 15%
Reverse Repurchase Agreements 92 days None 15%
Local Agency Investment Fund (LAIF) N/A None None
Medium Term Corporate Notes 5 years 30% 15%

Investments Authorized by Debt Agreements
The above investments do not address i nvestment of debt proceeds held by a bond trustee/ fiscal agent. Investments of debt proceeds held by a bond trustee are governed by provision of the debt agreements, rather th an the general provision of the California Government Code or the City’s investment policy.

Investments in Stat e Investment Pool
The City is a voluntary participant in the Lo cal Agency Investment Fund (LAIF) that is regulated by California Government Code un der 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 LA IF portfolio (in relation to the amortized cost of that portfolio). The balance availa ble for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.

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38 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(2) Cash and Investments (continued)

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 rati ng organization. Presented below is the minimum rating required by (where applicab le) the California Government Code, the City’s investment policy or debt agreements, and the actual rating, by Standard and Poor and Moody’s as of year-end for each investment type:

Minimum Ratings as of Year End
Legal Not
Investment Type Rating AAA AA A Rated

Local Agency
Investment Fund

$17,184,548

N/
A - - - 17,184,548
Held by Fiscal Agent:

Money Market Funds 2,732,985 N/A - - - 2,732,985

Total $19,917,533 - - - 19,917,533

Concentration of Credit Risk `
The City’s investment policy does not impose restrictions on the maximum percentage it can invest in a single type of investment. As of June 30, 2025, in accordance with GASB Statement No. 40 requirements, the City is exposed to c oncentration of credit risk whenever they have invested more than 5% of their total investment s in any one issuer.

As of June 30, 2025, the City was not exposed to concentration of credit risk.

Custodial Credit Risk
The custodial credit risk for deposits is th e risk that, in the event of the failure of a depository financial institution, a government will not be able to recover 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 a counterparty to a transaction, a government will not be able to recover the value of investment or collateral securities that are in the possession of an outside party.

Custodial credit risk does not apply to a local government’s indi rect investment in securities through the use of mutual funds or government inves tment pools (such as LAIF). As of June 30, 2025, none of the City’s deposits or investments were exposed to custodial credit risk.

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39 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(2) Cash and Investments (continued)

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.

The City’s investment policy limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. The City’s investment policy states that, with the exception of the investment of bond proceeds and LAIF, investments may not exceed five years in ma turity. The City has elected to use the segmented time distribution method of disclosure for its interest rate risk.

Remaining Investment Maturities
Less than 1 to 3 4 to 5
Investment Type 1 Year Years Years Total
Local Agency Investment Fund $17,184,548 - - 17,184,548 Held by Fiscal Agent:

Money market Mutual Funds 2,732,985
- - 2,732,985

Total $19,917,533
- - 19,917,533

Fair Value Classifications
Fair value measurements ar e categorized based on the valu ation inputs used to measure fair value: Level 1 inputs are quoted prices in active markets for identical asset assets; Level 2 inputs are significant other obser vable inputs; Level 3 inputs are significant unobservable inputs. Investment s categorized as Level 2 are valued using market approach using quoted market prices.

Investments' fair value measurements are as follows as of June 30, 2025:

Investment Type
Fair
Value

Level 1

Level 2

Level 3

Local Agency Investment Fund $17,184,548
Held by Fiscal Agent:

Money Market Mutual Fund 2,732,985
Total $19,917,533
Investments in the LAIF investment pool and money market mutual funds are uncategorized as deposit and withdrawals are made on the basis of $1 and not fair value. ���������������

40 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(3) Notes and Loans Receivable

Notes and loans receivable at June 30, 2025, consist of the following:
a. During 1992-93, the Bell Gardens former RDA entered into a loan agreement with Nehemiah West Housing Corporation for the development of low to moderate-income housing. The loan amount is $1,000,000 originally due October 13, 1994, and bearing interest at the rate of 12% per annum compounded after its due date. The balance as of June 30, 2025 is $222,027. The City’s Low an d Moderate Housing Fund has recorded unavailable revenue as of June 30, 2025 for the remainder of the outstanding loan. b. As of June 30, 2025, the City had deferred loans receivable pertaining to housing rehabilitation loans and mic ro business loans given under the Community Development Block Grant Program in the amount of $341,600 which has also been recorded as unavailable revenue.
c. The City and Southern Califor nia Water Company executed an agreement effective July 1, 1990, providing for reimbursement to the City of certain costs incurred by the City for water system improvements. The total reimbursement has been estimated at approximately $466,563 and is to be repaid in annual installments. As of June 30, 2025, the balance of the receivable was $16,009 whic h has also been reco rded as unavailable revenue.
d. During 1997-98, the City instituted a deferred loan program for academic scholarships.

As of June 30, 2025, the balance of the loans outstanding is $341,282 which has also been recorded as unavailable revenue.
e. As of June 30, 2025, the City has $35,241 in se ttlements receivable . The City is scheduled to receive $3,600 annually toward the receivable, which has also been recorded as unavailable revenue.
f. The Bell Gardens former Commission is required by State Law to set aside funds to create and preserve housing that is affordab le to low and moderate income families and individuals. The City has decided to util ize these funds for a s econd mortgage and/or closing costs, as needed for low-to-moderate income first time homebuyers. The City has established a not-to-exceed cap of $33,000 per case on an as needed basis. The Bell Gardens First Time Home Buyer Program is a deferred equity share loan secured by a second deed of trust and note wi th an annual rate of 3%. Th e loan shall become due and payable only when the property is sold, l eased or transferred. Repayment terms of principal, shared equity and interest at 3% per annum simp le interest vary depending on the year sold or transferred. After the twenti eth year, the loan is forgiven. The former Commission’s share of equity in the property shall not exceed the proportional investment as a percentage of the original pur chase price. The balance of the First Time Home Buyer Program as of June 30, 2025 is $833,940 which has also been recorded as unavailable revenue. As a result of dissolution of the Community Development Commission, the loan receivable was transf erred to the City’s Low and Moderate Housing Fund.
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41 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(3) Notes and Loans Receivable (continued)

g. On March 22, 2011, Terra Bella, LLP, a Califor nia limited partnership (the Borrower) and the Bell Gardens former RDA entered in to an owner participation agreement to develop a senior affordable housing project consisting of 65 units. Pursuant to the agreement, the former Commission has provide d financial assistance in the amount of $2,600,000 for the partial acquisition, construc tion, operation and maintenance of the units plus $32,000 on preconstruction loans. The promissory note shall bear simple interest at a rate of 3% per annum which is recorded as unavailable revenue. Payments shall be made annually in arrears on May 1. The entire unpaid principal balance, together with all accrued and unpaid interest, shall be due on the date which is 57 years from the date a certificate of occupancy is issued for the last residential unit in the project. The balance as of June 30, 2025, including accrued interest of $1,089,209, is $3,721,209. The loan receivable is recorded in the City’s Low and Mode rate Housing Fund, which has also been recorded as unavailable revenue.

h. On April 1, 2005, Bell Gardens Housing Partners , L.P., a California limited partnership entered in a promissory note to pay th e Bell Gardens former RDA $3,812,202 for the payment of public and private debts. Th e Low and Moderate Housing has provided certain financial assistance in construction of a 72-unit seni or affordable housing project by providing a Commission Loan (which is represented by this Promissory Note) in the amount of $3,812,202 for the acquisition and clea ring of the site and to help defray Developer’s costs. The promis sory note amount shall bear simp le interest at the rate of 3% per annum, and 10% per annum and shall accrue upon the amount of each payment required upon the date each such payment is du e. The Promissory Note shall be paid from “Residual Receipts”, defined as an amount equal to sixty-five percent (65%) of the net profits produced from the project (on a prorated basis), until the note amount has been repaid in full. Any remain ing principal, interest and other amounts due and owing under this promissory note shall be paid in full on or before the fifty-fifth (55 th) anniversary of
the date of promissory note.
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42 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(3) Notes and Loans Receivable (continued)

h. The balance of the promissory note and the re lated interest has also been recorded as unavailable revenue. The outstanding balance at June 30, 2025, is as follows:

Principal Interest
Amount Amount Total

CDBG Special Revenue $ 964,100 531,533 1,495,633
Former Community Development
Commission 1,514,959 835,236 2,350,195
Low and Moderate Housing 1,333,143 734,997 2,068,140 Subtotal 3,812,202 2,101,766 5,913,968

Less amount reported in
the Successor Agency 1,514,959 835,236 2,350,195

Total $2,297,243 1,266,530 3,563,773

i. On February 9, 2021, the City established a First Time Homebuyer Mortgage Assistance and/or Owner Occupied Rehabilitation program with CalHome Grant Funds. The outstanding loans as of June 30, 2025, incl uding accrued interest of $60,531 is $829,154.

The loan is recorded in th e City’s CalHome Fund, which ha s also been recorded as unavailable revenue.

Total notes and loans receivable as of June 30, 2025 is $9,904,235.

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43 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(4) Inter-fund Receivables, Payables and Transfers

a. Due To / From Other Funds:

The following summarizes the total due to and from other funds as of June 30, 2025:

Due to Other Funds:

Due From Other
Funds:

Anson
Ford
Park
Fund
Capital
Improvement
Projects
Fund

Nonmajor
Governmental
Funds

Water
Enterprise
Fund

Total
General Fund $5,064,104 5,197,728 1,182,364 5,579,288 17,023,484

Inter-fund receivables and payables as of June 30, 2025 are the result of the elimination of deficit cash balances in individual funds.

b. Transfers To / From Other Funds:

The following summarizes the total transfers in and transfers out to other funds as of June 30, 2025:

Transfers In:

Transfers Out:

General
Fund

Nonmajor
Governmental
Funds

Golf Course
Enterprise
Fund

Total
General Fund $ - 3,538,768 157,495 3,696,263
Nonmajor
Governmental Funds

-

298,000

-

298,000
Water Enterprise Fund 146,865
- - 146,865

Total $146,865
3,836,768 157,495 4,141,128

The General Fund transferred funds to Nonm ajor Governmental Funds to fund capital projects and to pay for operating costs.

The transfer to the General Fund from N on-Major Governmental Funds was to fund administrative costs. The General Fund transfer red funds to the Golf Course Enterprise fund to subsidize operations.

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44 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(5) Capital Assets

A summary of the changes in capital asset act ivity for the year ended June 30, 2025, is as follows:

Governmental Activities:

Beginning Ending
Description Balance Additions Deletions Balance

Non-depreciable:

Land $ 73,361,844 - - 73,361,844
Construction in process 9,738,790 15,366,279 - 25,105,069

Total non-depreciable 83,100,634 15,366,279 - 98,466,913

Depreciable:

Buildings and structures 18,573,581 - - 18,573,581 Equipment 12,994,866 938,659 (31,610) 13,901,915
Right-to-use, leased equipment 2,224,436 - - 2,224,436 Infrastructure 44,772,603 36,995 - 44,809,598

Total depreciable
capital assets 78,565,486 975,654 (31,610) 79,509,530

Less accumulated depreciation for:

Buildings and structures 11,332,307 590,266 - 11,922,573 Equipment 11,086,793 561,236 (31,610) 11,616,419
Right-to-use, leased
equipment 296,591 148,296 - 444,887
Infrastructure 32,477,106 1,054,374 - 33,531,480

Total accumulated
depreciation 55,192,797 2,354,172 (31,610) 57,515,359

Total depreciable
capital assets, net 23,372,689 (1,378,518) - 21,994,171

Total capital assets, net $106,473,323 13,987,761 - 120,461,084

Depreciation expense was charged in the following functions in the Statement of Activities:

Governmental Activities:

General government $1,299,798
Public works 1,054,374

Total $2,354,172

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45 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(5) Capital Assets (continued)

Business-type Activities:

Beginning Ending
Description Balance Additions Deletions Balance

Non-depreciable:

Land $1,011,000 - - 1,011,000

Total non-depreciable 1,011,000 - - 1,011,000

Depreciable:

Water rights 1,914,000 - - 1,914,000
Equipment 6,973,549 - - 6,973,549

Total depreciable
capital assets 8,887,549 - - 8,887,549

Less accumulated depreciation for:

Water rights 650,760 19,140 - 669,900
Equipment 3,324,700 144,026 - 3,468,726

Total accumulated
depreciation 3,975,460 163,166 - 4,138,626

Total depreciable
capital assets, net 4,912,089 (163,166) - 4,748,923

Total capital assets, net $5,923,089 (163,166) - 5,759,923

Depreciation expense was charged in the following functions in the Statement of Activities:

Business-Type Activities
Water $163,166

Total $163,166

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46 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(6) Long-term Liabilities

(a) Governmental Activities
Long-term liability activity for the year ended June 30, 2025 was as follows:

Amounts
Beginning Ending Due within
Balance Additions Deletions Balance One Year
Governmental Activities:
2015 Lease revenue
refunding bonds $ 4,240,000 - 220,000 4,020,000 230,000 Unamortized bond premium 413,029 - 24,127 388,902 24,127 Lease payable 1,868,184 - 131,500 1,736,684 135,461 Compensated absences 3,603,629 - 250,851 * 3,352,778 1,676,389

Total governmental activities $10,124,842 - 626,478 9,498,364 2,065,977

* The change in the compensated absences liability is presented as a net change.

2015 Lease Revenue Refunding Bonds:

On April 14, 2015, the Authority issued $5,830,000 of Lease Revenue Refunding Bonds.

The proceeds were used to re fund 2006 Certificates of Part icipation, to fund various capital projects within the City, to fund a re serve account and to finance the costs of the transaction. The bond refunded $3,260,000 in pr incipal with a $32,600 premium for a total cost to refund the 2006 Certificates of Partic ipation of $3,292,600. This refunding resulted in a net present value savings for the City of approximately $335,270. Interest rates range from 3.0% to 5.0% and is pa yable semiannually on each June 1 and December 1, commencing on June 1, 2016. Prin cipal payments range from $135,000 to $370,000. As of June 30, 2025, the unamorti zed premium outstanding was $388,902 and the total principal balance outstanding wa s $4,020,000. In the event of default, the Authority may only recover rent and other monetary charges as they become due.

Fiscal Year Principal Interest Total
2026 $ 230,000 190,813 420,813
2027 235,000 179,313 414,313
2028 250,000 167,563 417,563
2029 260,000 155,063 415,063
2030 270,000 142,063 412,063
2031-2035 1,590,000 491,313 2,081,313
2036-2040 1,185,000
126,688 1,311,688
Total $4,020,000 1,452,816 5,472,816
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47 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(6) Long-term Liabilities (continued)
Lease Payable:

On April 30, 2021, the City entered into a master equipment lease purchase for improvements to facilities lighting, HVAC, and water co nservation. The initial lease liability was $2,239,435. The term of the lease is 15 years and principal and interest payments commence in October 2021. Semi annual payments of $93,182 are due October 31 and April 30 at an interest rate of 2.99%.At June 30, 2025, th e total lease liability was $1,736,684. The equipment has a fifteen-year esti mated useful life. The value of the right-to-use asset as of the end of th e current fiscal ye ar was $2,224,436 and had accumulated amortization of $444,887 as it was placed into service in the prior year.

At June 30, 2025, the annual requirements to re pay the outstanding indebtedness were as follows:

Fiscal Year Principal Interest Total
2026 $ 135,461 50,903 186,364
2027 139,542 46,822 186,364
2028 143,745 42,619 186,364
2029 148,075 38,289 186,364
2030 152,536 33,828 186,364
2031-2035 834,435 97,385 931,820
2036 182,890
3,774 186,664
Total $1,736,684 313,620 2,050,304
Accrued Leave Payable (Compensated Absences)
For governmental funds, accrued leave pa yable amounted to $3,352,778 as of June 30, 2025. The balance is broken down as follo ws: $918,893 in vacation leave, $2,022,300 in sick leave, $36,975 in compensatory time, $260,937 in holiday, and $113,674 in administrative leave.

CJPIA Retrospective Deposit Liability
Retrospective deposits are cost allocation ad justments to prior coverage periods. Some claims take many years to resolve and over time their estimated value changes. The retrospective adjustments are calculated a nnually and take into consideration all the changes in claim values that occurred dur ing the most recent year. The formula is designed to adequately cover the cost of claims brought against memb ers and to ensure the overall financial strength and security of the Authority. The formula was developed to be as equitable as possible by taking into consideration both risk exposure and claims experience of individual me mbers. CJPIA has temporarily deferred the payment on retrospective deposits owed to the Authority by members. The payment deferral period extends until July 1, 2013 for the Liability program and July 1, 2015 for the Workers’ Compensation program. Retrospective deposit payments are scheduled to resume on these dates. As of June 30, 2025, the City has a retrospective deposit of $0. ���������������

48 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(6) Long-term Liabilities (continued)

Optional Payment Plans:

When retrospective deposit payments resume as indicated above, members will have the opportunity to select fro m a variety of optional pa yment plans. Discounts under the incentive plan are available to members choosing to voluntarily accelerate payment during the deferral period. The City has chosen not to voluntarily accelerate payment at this time.

After the deferral period, members choosing from among the optional payment plans will be subject to a moderate annual fee. The fee is intended to provide a means for the Authority to recover otherwise foregone investment earnings and to serve as a minor disincentive for the selection of longer financing terms.

Retrospective Balances will Change Annually:

Retrospective balances will change w ith each annual computation during the payment deferral period. Member balances ma y increase or decrease as a result of the most recent year’s claim developmen t. Accordingly, some members who chose to pay off their balance in full may be required to pay additional retrospective deposits in the future based on the outcome of actual claim development reflected in subsequent retrospective deposit computati ons. Conversely, if cl aim development is favorable then subsequent retrospective adjustments could potentially result in refunds to the member.

More information on the CJPIA retrospect ive balances can be found on the CJPIA website at: http://www.cjpia.org.

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49 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(7) Lease Receivable
Lease revenue recognition is in accord ance with GASB Statement 87. Summarized information for each lease is as follows:

Monument Properties-Bell Gardens LLC (Formerly the Bicycle Hotel Casino) Prior to fiscal year ended J une 30, 2022 (the year of imple mentation), the City entered into a 146 month lease as Lessor for the use of the Bicycle Club Parking Facility which was recognized in fiscal year June 30, 2022 as a result of implementing GASB 87. An initial lease receivable wa s recorded in the amount of $29,899,288. As of June 30, 2025 the value of the lease r eceivable and deferred inflow was $22,920,713. The lessee is required to make monthly variab le fixed in substance principl e and interest payments of $220,685. The lease has an interest rate of 1.25 %. The City recognized lease revenue of $2,874,483 during the fiscal year. The lessee has 3 extension option(s), each for 120 months.

Outfront Media, LLC
Prior to fiscal year ended J une 30, 2022 (the year of imple mentation), the City entered into a 88 month lease as Lessor for a third party use of billboard lease which was recognized in fiscal year June 30, 2022 as a result of implementing GASB 87. An initial lease receivable was recorded in the amount of $996,454. As of June 30, 2025 the value of the lease receivable and deferred inflow was $625,303. The lessee is required to make quarterly fixed payments of $140,000. The lease has an in terest rate of 0.8330%. The City recognized lease revenue of $314,099 dur ing the fiscal year. The lessee has 2 extension option(s), each for 60 months.

Florence Eastern Marketplace LLC
Prior to fiscal year ended J une 30, 2022 (the year of imple mentation), the City entered into a 26 month lease as Lessor for a third party use of Shopping Center (Market Place) which was recognized in fiscal year June 30, 2022 as a result of implementing GASB 87.

An initial lease receivable was recorded in the amount of $3,479,084. As of June 30, 2025 the value of the lease receivable and defe rred inflow was $0. The lessee is required to make monthly fixed paym ents of $125,890. The lease has an interest rate of 0.2180%.

The City recognized lease revenue of $276,883 during the fiscal year. The lessee has 7 extension option(s), each for 120 months.
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50 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(7) Lease Receivable (continued)
Los Angeles SMSA Limited Partnership C/O AirTouch Cellular (Version) Prior to fiscal year ended J une 30, 2022 (the year of imple mentation), the City entered into a 59 month lease as Lessor for a th ird party use of ground lease which was recognized in fiscal year June 30, 2022 as a result of implementing GASB 87. An initial lease receivable was recorded in the amount of $184,671. As of June 30, 2025 the value of the lease receivable and deferred inflows was $105,853. The lessee is required to make monthly fixed payments of $3,060. The lease has an interest rate of 0.5770%. The City recognized lease revenue of $53,951 during the fiscal year. The lessee has 3 extension option(s), each for 60 months. The lessee had a termination period of 1 month as of the lease commencement.

Bell Gardens Hospitality, LLC (Quality Choice)
Prior to fiscal year ended J une 30, 2022 (the year of imple mentation), the City entered into a 784 month lease as Le ssor for the use of the Be ll Gardens Hotel Site-Ground :Lease which was recognized in fiscal year June 30, 2022 as a resu lt of implementing GASB 87. An initial lease receivable was r ecorded in the amount of $5,994,302. As of June 30, 2025 the value of the lease receiv able and deferred inflows was $5,831,427. The lessee is required to make monthly fixed pa yments of $12,657. The lease has an interest rate of 1.7050%. The City recognized lease revenue of $52,852 during the fiscal year.

(8) Defined Benefit Pension Plans
Plan Description : All qualified permanent and proba tionary employees are eligible to participate in the City of Bell Garden’s Safety and Miscellaneous Employee Pension Plans, cost-sharing multiple employer define d benefit pension plans administered by the California Public Employees’ Retirement Sy stem (CalPERS). Bene fit provisions under the Plans are established by State statute a nd City of Bell Garden resolution. CalPERS issues publicly available reports that incl ude 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 an d death benefits to plan me mbers, 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 fi ve years of total service are eligible to retire at age 50 with statutorily reduced be nefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefi t is one of the following: the Basic Death Benefit, the 1957 Survivor Bene fit, 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 Public Employees’ Pension Reform Act of 2013 (PEPRA) requires new benefits and member contributions for new members as defined by PEPRA, that are hired after January 1, 2013. These PEPRA members in pool ed plans are reflected in the new Miscellaneous and Safety risk pools create d by the CalPERS Board in response to the passage of PEPRA, beginning with the June 30, 2013, risk-pool valuations. ���������������

51 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(8) Defined Benefit Pension Plans (continued)

The Plans’ provisions and benefits in effect at June 30, 2023, are summarized as follows:

Miscellaneous

Hire Date
Prior to
January 1, 2013
On or after
January 1, 2013
Benefit formula 2.7% @ 55 2.0% @ 62
Benefit vesting schedule 5 years service 5 years service Benefit payments monthl y for life monthl y for life
Retirement age 50 - 55 52 – 67
Monthly benefits, as a % of eligible compensation 2.0% to 2.7% 1.0% to 2.5% Required employee contribution rates 7.96% 6.92%
Required employer contribution rates 15.95% 11.84%
Safet y

Hire Date
Prior to
January 1, 2013
On or after
January 1, 2013
Benefit formula 3.0% @ 50 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service Benefit payments monthl y for life monthl y for life
Retirement age 50 - 55 52 - 67
Monthly benefits, as a % of eligible compensation 3.00% 2.0% to 2.7% Required employee contribution rates 8.99% 8.95%
Required employer contribution rates 29.09% 21.78%

Contributions: Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer c ontribution rates for all public employers are 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 ar e determined a nnually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of be nefits earned by employe es during the year, with an additional amount to finance any unfunded accrued liability. The City of Bell Gardens is required to contribu te the difference between the actuarially determined rate and the contribution rate of employees. Co ntributions to the pension plans were $2,297,697 and $3,454,382 for the Miscellaneous and Sa fety plans, respectively, for the year ended June 30, 2025.

Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions - As of June 30, 2025, the City of Be ll Gardens reported net pension liabilities for its proportionate shares of the net pension liability as follows:
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52 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(8) Defined Benefit Pension Plans (continued)

Proportionate Share
of Net Pension Liability
Miscellaneous $19,607,443
Safety 32,954,822

Total Net Pension Liability $52,562,265

The City of Bell Gardens’ net pension lia bility for each Plan is measured as the proportionate share of the net pension liabilit y. The net pension liability of each of the Plans is measured as of June 30, 2023, and the total pension liability for each Plan used to calculate the net pension liability was determin ed by an actuarial valuation as of June 30, 2022 rolled forward to June 30, 2023 using standa rd update procedures. The City of Bell Gardens’ proportion of the net pension liability was based on a projection of the City of Bell Gardens’ long-term share of contributio ns to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The City of Bell Gardens’ proportionate share of the net pension liability for each Plan as of June 30, 2023 and 2024 was as follows:

Miscellaneous Safet y
Proportion – June 30, 2023 0.39660% 0.44752%
Proportion – June 30, 2024 0.40540% 0.45200%
Change – Increase (Decrease) 0.00880% 0.00448%

For the year ended June 30, 2025, the City of Bell Gardens recogniz ed pension expense of $3,646,561 and $5,396,175 for the Miscellaneous a nd Safety plans, respectively. At June 30, 2024, the City of Bell Gardens report ed deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Miscellaneous
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Pension contributions subsequent to measurement date $ 2,632,690 - Change in proportion 108,232 (328,185)
Net difference in actual contributions vs.
proportionate share of contributions

101,005

(98,704)
Net difference between expected and actual experience 1,695,243 (66,147) Net differences between projected and
actual earnings on plan investments

1,128,777

-
Change in assumptions 503,952 -

Total $ 6,169,899 (493,036)
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53 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(8) Defined Benefit Pension Plans (continued)

Safet y
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Pension contributions subsequent to measurement date $ 3,894,273 - Change in proportion - (560,838)
Net difference in actual contributions vs.
proportionate share of contributions

383,394

(379,103)
Net difference between expected and actual experience 2,689,406 (87,444) Net differences between projected and
actual earnings on plan investments

1,592,886

-
Change in assumptions 811,940 -

Total $ 9,371,899 (1,027,385)

$2,632,690 and $3,894,273 reported as deferred outfl ows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended J une 30, 2026 for the Miscellaneous and Safety plans, respectively. Amounts reported as de ferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Year Ended
June 30

Miscellaneous

Safety
2026 $ 880,616 $1,299,744
2027 2,533,389 3,716,461
2028 16,986 (20,950)
2029 (386,818)
(545,014)
$3,044,173 $4,450,241
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54 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(8) Defined Benefit Pension Plans (continued)

Actuarial Assumptions – The total pension liabilities in the June 30, 2023 actuarial valuations were determined using the following actuarial assumptions:

Miscellaneous Safety
Valuation Date June 30, 2023 June 30, 2023
Measurement Date June 30, 2024 June 30, 2024
Actuarial Cost Method Entry-Age Normal Cost
Method
Entry-Age Normal
Cost Method
Actuarial Assumptions:

Discount Rate 6.90% 6.90%
Inflation 2.5% 2.5%
Payroll Growth 3.0% 3.0%
Projected Salary Increase Varies by Entry Age Varies by Entry Age Investment Rate of Return 7.5% (1) 7.5% (2)
Mortality Varies (2) Varies (2)

(1) Net of pension plan investment expenses, including inflation. (2) The mortality table used was developed based on CalPERS’ specific data. The table includes 20 years of mortality improvements using Society of Actuaries Scale BB.

The underlying mortality assumptions and all other actuarial assump tions used in the June 30, 2016 valuation were based on the resu lts of a actuarial e xperience study for the period 1997 to 2011. Further details of the Experience Study can be found on the CalPERS website.

Change of Assumptions – In Fiscal Year 2023-24, demographic assumptions and the inflation rate were changed in accordan ce with the CalPERS Experience Study and Review of Actuarial Assumptions Decembe r 2017. There were no changes in the discount rate. Deferred outflows of resources and deferred inflows of resources for changes of assumptions represent the unamortized portion of the changes of assumptions related to prior measurement periods.

Discount Rate – The discount rate used to measure the total pension liability was 6.90% for each plan. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at statutor ily required rates, actuarially determined. Based on those assumptions, the plans’ fiduciary net position was projected to be available to make all projected future bene fit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of pr ojected benefit payments to determine the total pension liability.

The long-term expected rate of return on pension plan inve stments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
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55 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(8) Defined Benefit Pension Plans (continued)

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 a ll the funds’ asset cla sses, expected compound (geometric) returns were calculated over the shor t-term (first 10 years) and the long-term (11+ years) using a building-block approac h. 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 calcu lating the rounded single equivalent expected return that arrived at the same present va lue of benefits for cash flows as the one calculated using both short-term and long-term returns. The e xpected rate of return was then set equivalent to the single equivalent rate calculated above a nd adjusted to account for assumed administrative expenses.

The expected real rates of return by asset class are as follows:

Asset Class (a)
Assumed
Asset
Allocation

Real
Return (b)(c)

Public Equity 18.0% 4.50%
Fixed Income 45.0% 1.40%
TIPS 20.0% 0.50%
Commodities 3.0% 1.10%
REITs 14.0% 3.70%
Total 100.0%

(a) Commodities and REITs are included in Public Equity; TIPS are included in fixed Income. (b) An expected inflation of 2.3% used for this period. (c) Figures are based on the 2021-22 Asset Liability Management study.

Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate – The following presents the Bell Ga rdens’ proportionate share of the net pension liability for each Plan, calculated using the discount rate for each Plan, as well as what the Bell Garden’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:

Miscellaneous Safet y
1% Decrease 5.90% 5.90%
Net Pension Liability $29,965,183 $48,950,438

Current Discount Rate 6.90% 6.90%
Net Pension Liability $19,607,443 $32,954,822

1% Increase 7.90% 8.15%
Net Pension Liability $11,081,499 $19,872,657
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56 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(9) Other Post Employment Benefits (OPEB)

Plan Description - In addition to the pension benefits described above, the City provides retiree health insurance bene fits through a single employer defined benefit plan. In accordance with the plan, which was approved by the City Council, these benefits are available to all employees who are eligible for normal PERS retirement and who retire after January 1, 1990. The City pays for mont hly medical, dental and vision premium.

The portion paid is based on years of service at retirement. The plans vary based on date of hire and bargaining unit.

Employee Covered – As of June 30, 2024 actuarial va luation, the following current and former employees were covered by the benefit terms under the plan:

Active employees 160
Inactive employees or beneficiaries currently
receiving benefits 75
Inactive employees ent itled to, but not yet
receiving benefits -
Total 235

Contributions - Currently, the City funds retiree he althcare benefits on a pay-as-you-go basis. The City recognizes expenditure for its share of the annual premiums as these benefits become due. For fiscal year 2024-2025, the City paid $1,931,065 for benefits of 75 retired employees.

Net OPEB Liability - The City of Bell Gardens net OPEB liability was measured as of June 30, 2025 and the total OPEB liability used to calculate the net OEPB liability was determined by an actuarial valuation date June 30, 2024 that was rolled forward to determine the June 30, 2025 total OPEB lia bility, based on the following actuarial methods and assumptions:

Actuarial Assumptions:

Discount Rate 3.65%
Projected Salary Increase Salary Scale
General Inflation 2.75%
Mortality Varies (1)

(1) The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2017 valuation were based on the results of a actuarial experience study for the period 1997 to 2011. Further details of the Experience Study can be found on the CalPERS website.

Discount Rate – The discount rate used to measur e the OPEB liability was 3.65 percent, using the average of 3-20 year municipal bond rate indices: S& P Municipal Bond 20 Year High Grade Rate Index, Bond Buyer 20- Bond GO Index, Fideli ty GO AA 20 Year Bond Index.

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57 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(9) Other Post Employment Be nefits (OPEB) (continued)

The Changes in the net OPEB liabi lity for the plan are as follows:

Increase (Decrease)
Total
OPEB
Liability
(a)
Plan
Fiduciary
Net Position
(b)
Net OPEB
Liability/
(Asset)
(c)=(a)-(b)
Balance at Fiscal Year Ending 6/30/23
Measurement Date 6/30/23

$68,944,258

$ 325,106

$68,619,152
Changes During the Period:

Service Cost 2,260,305 - 2,260,305
Interest Cost 2,729,801 41,181 2,688,620
Expected Investment Income - - -
Employer Contributions - 1,931,065 (1,931,065)
Changes of Benefit Terms - - -
Benefit Payments (1,931,065) (1,931,065) -
Assumption Changes (11,930,022) - (11,930,022)
Plan Experience - - -
Investment Experience - - -
Recognized Deferred Resources - - -
Administrative Expenses - (2,018) 2,018
Net Changes in Fiscal Year 2023-24 (8,870,981) 39,163 (8,910,144) Balance at Fiscal Year Ending 6/30/24
Measurement Date 6/30/24

$60,073,277

$ 364,269

$59,709,008

As of June 30, 2025, $1,165,830 of the net OPEB liability has been allocated to the Successor Agency of the Former Community Development Commission.

Sensitivity of the Proportionate Share of the OPEB Liability to Changes in the Discount Rate – The following presents the City of Bell Ga rdens’ OPEB liability, calculated using the discount rate, as well as wh at the City’s OPEB liability would be if it were calculated using a discount rate that is 1-percentage poi nt lower or 1-percenta ge point higher than the current rate:

1% Decrease 2.65%
Net OPEB Liability $50,499,913

Current Discount Rate 3.65%
Net OPEB Liabilit
y $59,709,008

1% Increase 4.65%
Net OPEB Liabilit
y $70,351,869

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58 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(9) Other Post Employment Be nefits (OPEB) (continued)

Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trends – The following presents the net OPEB liability of the City of Bell Gardens’ if it were calculated using health care cost trend rates that are one pe rcentage point lower or one percentage point higher than the current rate, for the measurement period June 30, 2025:

1% Decrease 5.5%HMO/6.0%PPO Decreasing to

4.0%HMO/4.0%PPO

Net OPEB Liability $50,499,913

Current Healthcare Cost
Trend Rates

6.5%HMO/7.0%PPO Decreasing to

5.0%HMO/5.0%PPO

Net OPEB Liability $59,709,008

1% Increase 7.5%HMO/8.0%PPO Decreasing to

6.0%HMO/6.0%PPO

Net OPEB Liability $70,351,869

OPEB Expense and Deferred Outflows/Inflo ws of Resources Related to OPEB – For the fiscal year ended June 30, 2025, the City of Bell Gardens recognized OPEB expense of $2,009,768. As of the fiscal year ended June 30, 2025, the City of Bell Gardens reported deferred outflows and inflows of resources related to OPEB from the following sources:

Deferred Outflows
of Resources
Deferred Inflows
of Resources
Differences between expected and
actual experience

$ 639,977

(1,588,294)
Differences between projected and
actual return on assets

-

(19,408)
Chan
ge in assumptions 1,125,564 (21,553,400)

Total $ 1,765,541 (23,161,102)

Amounts reported as deferred outflows of reso urces and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Year Ended
June 30
Recognized Net Deferred
Outflows and Inflows of
Resources
2026 $ (2,951,004)
2027 (3,338,123)
2028 (3,425,297)
2029 (3,421,821)
2030 (3,417,444)
Thereafter (4,841,872)
$(21,395,561)
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59 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(10) California Joint Powers Insu rance Authority Insurance Program

a. Description of Self-Insurance Pool Pursuant to Joint Powers Agreement

The City of Bell Gardens is a member of the CALIFORNIA JOINT POWERS INSURANCE AUTHORITY (Authority ). The Authority is composed of 100 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 pooli ng 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 California JPIA began c overing claims of its members in 1978. Each member government has an elected official as its representative on the Board of Directors. The Board operates through a nine-member Executive Committee.

b. Primary Self-Insurance Program of the Authority

Each member pays an annual contribution at the beginning of the coverage period. A retrospective adjustment is then conducted annually thereafter, fo r coverage years 2012- 13 and prior. Coverage years 2013-14 and fo rward are not subject to routine annual retrospective adjustment. The total fundi ng requirement for primary self-insurance programs is based on an actuari al analysis. Costs are allo cated to individual agencies based on payroll and claims history, relative to other members of the risk-sharing pool.

Primary Liability Program

Claims are pooled separately between police and general government exposures. (1) The payroll of each member is eval uated relative to the payroll of other members. A variable credibility factor is determined for each me mber, 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 $100,000 for e ach 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 $100,000 to $500,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within th e second layer. (4) Incurred costs from $500,000 to $50 million, are distributed based on the outcome of cost allocation within the first and second loss layers.

The overall coverage limit fo r each member, including all layers of coverage, is $50 million per occurrence. Subsid ence losses also have a $50 mil lion per occurrence limit.

The coverage structure is composed of a combination of pooled self-insurance, reinsurance, and excess insurance. Additi onal information concerning the coverage structure is available on the Authority’s website: https://cjpia.org/coverage/risk-sharing- pools/.

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60 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(10) California Joint Powers Insurance Authority Insurance Program (continued)

Primary Workers’ Compensation Program

Claims are pooled separately between public safety (police and fire) and general government exposures. (1) The payroll of eac h member is evaluate d relative to the payroll of other members. A variable credib ility 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 losse s includes incurred co sts up to $75,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The sec ond layer of losses include s incurred costs from $75,000 to $200,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs fr om $200,000 to statutory limits are distributed based on the outcome of cost allocation within the first and second loss layers.

For 2023-24 the Authority’s pooled retent ion is $1 million per occurrence, with reinsurance to statutory limits under Ca lifornia Workers’ Compensation Law.

Employer’s Liability losses are pooled among members to $1 million. Coverage from $1 million to $5 million is purchas ed through reinsurance policies, and Employer’s Liability losses from $5 million to $10 million are pooled among members.

c. Purchased Insurance

Pollution Legal Liability Insurance

The City of Bell Gardens participates in the pollution legal liability insurance program which is available through the Authority. The policy covers sudden and gradual pollution of scheduled property, streets, and storm drai ns owned by the City of Bell Gardens.

Coverage is on a claims-made basis. Ther e is a $250,000 deductible . The Authority has an aggregate limit of $20 million.

Property Insurance

The City of Bell Gardens participates in th e all-risk property protection program of the Authority. This insurance protection is unde rwritten by several insurance companies.

City of Bell Gardens propert y is currently insured accordin g to a schedule of covered property submitted by the City of Bell Gardens to the Authority. City of Bell Gardens property currently has all- risk property insurance pr otection in the amount of $48,652,939. There is a $10,000 deductible per occurrence except for non-emergency vehicle insurance which has a $2,500 deductible.

Crime Insurance

The City of Bell Gardens purchases crime insurance coverage in the amount of $1,000,000 with a $2,500 deductible. The fideli ty coverage is provided through the Authority.

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61 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(10) California Joint Powers Insurance Authority Insurance Program (continued)

Special Event Tenant User Liability Insurance

The City of Bell Gardens further protects ag ainst liability damages by requiring tenant users of certain property to pu rchase low-cost tenant user liability insurance for certain activities on agency property. The insurance premium is paid by the tenant user and is paid to the City of Bell Gardens according to a schedule. The City of Bell Gardens then pays for the insurance. The insurance is facilitated by the Authority.

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 also no significant reductions in pooled or insured liability coverage in 2024-25.

(11) Contingent Liabilities

a. Lawsuits in the Normal Course of Business

The City is presently involved in certain ma tters of litigation that have arisen in the normal course of conducting City business. City management believes, based upon consultation with the City Attorney, that these cases, in the aggregate, are not expected to result in a material adverse financial impact on the City. Additionally, City management believes that the City's insurance programs ar e sufficient to cover any potential losses should an unfavorable outcome materialize.

b. Federal and State Grant Programs

The City participates in several federal a nd state grant programs. These programs have been audited by the City's independent audito rs in accordance with the provisions of the federal Single Audit Act, as amended and applicable state requirements. No cost disallowances were proposed as a result of these audits. However, these programs are still subject to further examination by the grantors and the amount, if any, of expenditures ���������������

62 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(12) Classification of Fund Balances

The City has adopted the provisions of GASB Statement No. 54, “Fund Balance and Governmental Fund Type Definitions”. GASB 54 establishes fund balance classifications based largely upon the extent to which a gove rnment is bound to observe constraints imposed upon the use of the resources reported in governmental funds. The governmental fund statements conform to this classification and are summarized as follows as of June 30, 2025:

General Fund
Anson
Ford
Park Special
Revenue Fund
Capital
Improvement
Projects Capital
Project Fund
Non-major
Governmental
Funds Totals
Nonspendable
Prepaid items $ 114,914 - - - 114,914 Notes and loans 51,250 - - - 51,250 Due from Water Fund 5,579,288 - - - 5,579,288 Total Nonspendable 5,745,452 - - - 5,745,452 Restricted
Housing - - - 2,911,309 2,911,309 Public safety - - - 2,137,766 2,137,766 Transportation - - - 8,313,604 8,313,604 Environmental - - - 1,477,323 1,477,323 Total Restricted - - - 14,840,002 14,840,002 Assigned
Contingencies 4,303,647 - - - 4,303,647
Post employment benefits 10,846,259 - - 144,490 10,990,749 Compensated absences 3,352,778 - - - 3,352,778 Interfund loans receivable 1,182,364 - - - 1,182,634 Total Assigned 19,685,048 - - 144,490 19,829,364 Unassigned - (5,110,801) (6,822,550) (623,053) (12,556,404) Totals $ 25,430,500 (5,110,801) (6,822,550) 14,361,439 28,378,588

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63 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(13) Successor Agency Trust For Assets of Former Community Development Commission

On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 (“the Bill”) that provides for the dissolution of al l redevelopment agencies in the State of California. This action impacted the reporting entity of the City of Bell Gardens that previously had reported a redevelopment agency within the reporting entity of the City as a blended component unit.

The Bill directs the State Controller of the Stat e of California to review the propriety of any transfers of assets between redevelopm ent agencies and othe r public bodies that occurred after January 1, 2011. If the public body that receiv ed such transfers is not contractually committed to a third party for the expenditure or encumbrance of those assets, the State Controller is required to order the available assets to be transferred to the public body designated as the successor agency by the Bill.

Management believes, in consultation with legal counsel, that the obligations of the former community development commission due to the City are valid enforceable obligations payable by the successor agency tr ust under the requirements of the Bill. The City’s position on this issue is not a position of settled law and there is considerable legal uncertainty regarding this issue. It is reas onably possible that a le gal determination may be made at a later date by an appropriate judicial authority that would resolve this issue unfavorably to the City.

In accordance with the timeline set forth in the Bill (as modified by the California Supreme Court on December 29, 2011) all rede velopment agencies in the State of California were dissolved and ceased to operate as a legal entity as of February 1, 2012.

a. Cash and investments

Cash and investments reported in the accompanying financial statements consisted of the following:

Cash and investments $3,486,346
Cash and investments with fiscal agent 2,311,801
Total cash and investments $5,798,147
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64 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(13) Successor Agency Trust For Assets of Former Community Development Commission (continued)

b. Notes and Loans Receivable

Notes and loans receivable as of June 30, 2025, consist of the following:

On April 1, 2005, Bell Gardens Housing Partners , L.P., a California limited partnership entered into a promissory note to pay the former Bell Gardens Community Development Commission $3,812,203 for the payment of public and private debts. The former Commission has provided certain financial assistance in construction of a 72-unit senior affordable housing project by providing a Commission Loan (which is represented by this Promissory Note) in the amount of $3,812,203 for the acquisition and clearing of the site and to help defray Developer' s costs. The promissory not e amount shall bear simple interest at the rate of 3% per annum, and 10% per annum shall accrue upon the amount of each payment required upon the date each su ch payment is due. The Promissory Note shall be paid from “Residual Receipts”, defined as an amount equal to sixty-five percent (65%) of the net profits produ ced from the project (on a pr orate basis), until the note amount has been repaid in fu ll. Any remaining principal, interest and other amounts due and owing under this promissory note shall be paid in full on or be fore the fifty-fifth (55th) anniversary of the date of the promissory note. The Successor Agency’s outstanding balance as of June 30, 2025, including interest of $835,237, is $2,350,197.

Total notes and loans receivable at June 30, 2025, were $2,350,197. ���������������

65 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(13) Successor Agency Trust For Assets of Former Community Development Commission (continued)

c. Capital Assets

An analysis of capital assets as of June 30, 2025, follows:

Beginning Ending
Description Balance Additions Deletions Balance

Non-depreciable:

Land $ 1,773,001 - - 1,773,001

Total non-depreciable $ 1,773,001 - - 1,773,001

d. Long-Term Liabilities

The following debt was transferred from the Community Development Commission to the Successor Agency as of February 1, 2012 as a result of the dissolution. A description of long-term debt outstanding of the Successor Agency as of June 30, 2025, follows:

Beginning Ending Due within
Balance Additions Deletions Balance One Year
Advances from City $36,962,204 263,986 769,139 36,457,051 - Tax Allocation Bonds Payable:
2014 Refunding Series B 3,200,000 - 475,000 2,725,000 500,000 2014 Refunding Series C 7,020,000 - 540,000 6,480,000 565,000 Unamortized Bond Premium 116,463 - 23,294 93,169 23,293 Unamortized Bond Discount (10,116) - (1,445) (8,671) (1,445) Revenue Bonds Payable:
2005 Series A Central City
Project Area 1,350,000 - 185,000 1,165,000 200,000
Unamortized Bond Premium 34,324 - 6,868 27,456 6,868

Subtotal $48,672,875 263,986 1,997,856 46,939,005 1,293,716

Advances from City

The advances from the City consist of $36,457,051 loans including ac crued interest of $16,763,765 as of June 30, 2025. Accrued interest is calculated in accordance with HSC Section 34191.416 which states that interest sha ll be calculated from the origin of the loan at a simple interest rate of three percent.
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66 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(13) Successor Agency Trust For Assets of Former Community Development Commission (continued)

d. Long-Term Debt, (Continued)

2005 Revenue Bonds, Series A

On June 22, 2005, the Commission issued $4,775,000 of revenue bonds with an interest rate of 7.75%. The proceeds were used to fi nance redevelopment ac tivities to benefit Project No. 1 Redevelopment Area and Cent ral City Redevelopment Area, to fund a reserve fund, and to pay for the costs of issuing the bonds (insurance, underwriter discount, and other costs). Interest is paid semi-annually on April 1 and October 1 with a final maturity date of October 1, 2029. As of June 30, 2025, the unamortized premium outstanding was $27,456 and the total principal outstanding was $1,165,000.

At June 30, 2025, the annual requirements to re pay the outstanding indebtedness were as follows:

Fiscal Year
Principal Interest Total

2026 $ 200,000 90,288 290,288
2027 215,000 74,788 289,788
2028 230,000 58,125 288,125
2029 250,000 40,300 290,300
2030 270,000
20,925 290,925

Total $1,165,000 284,426 1,449,426

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67 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(13) Successor Agency Trust For Assets of Former Community Development Commission (continued)

d. Long-Term Debt, (Continued)

2014 Tax Allocation Revenue Refunding Bonds, Series A, B & C

On June 18, 2014, the Successor Agency issued a total of $21,455,000 of revenue refunding bonds, Series A, B, and C.

The 2014 Series A and B reve nue refunding bonds were issued for $10,330,000 with an average interest rate of 4.41% and were used to advance refund the $12.5 million of outstanding 2003 Series A and B revenue bonds with an average interest rate of 5.32%.

This refunding resulted in a net present value savings fo r the Successor Agency of approximately $1.5 million.

The 2014 Series C, Second Subordinate Tax Allocation Revenue Refunding Bonds were issued for a total of $11,125,000 with an average interest rate of 4.8%. The bond proceeds were used to pay off the Bear Ster ns note in the amount of $8.3 million which had been in default and to pay the related other cost of issuance. The estimated remaining $1,110,095 was put into a reserve account with the trustee per the bond indenture agreement.

At June 30, 2025, the total principal outst anding for the 2014 Series B and C were $9,205,000.

���������������

68 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(13) Successor Agency Trust For Assets of Former Community Development Commission (continued)

d. Long-Term Debt, (Continued)

2014 Tax Allocation Revenue Refundi ng Bonds, Series A, B & C, (Continued)

As of June 30, 2025, the annual requirements to repay the outstanding indebtedness for the 2014 Series B bonds are as follows:

Fiscal Year Principal Interest Total

2026 $ 500,000 102,500 602,500
2027 525,000 76,875 601,875
2028 545,000 53,531 598,531
2029 565,000 32,719 597,719
2030 590,000
11,063 601,063

Total $2,725,000 276,688 3,001,688
As of June 30, 2025, the annual requirements to repay the outstanding indebtedness for the 2014 Series C bonds are as follows:

Fiscal Year Principal Interest Total

2026 $ 565,000 318,737 883,737
2027 590,000 289,037 879,037
2028 630,000 257,664 887,664
2029 660,000 224,492 884,492
2030 690,000 189,777 879,777
2031-2032 3,345,000
174,219 3,519,219

Total $6,480,000 1,453,926 7,933,926

���������������
69 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(13) Successor Agency Trust For Assets of Former Community Development Commission (continued)
d. Long-Term Debt, (Continued)
Pledged Revenue
The City pledged, as security for bonds issued , either directly or through the Financing Authority, a portion of tax increment revenue (including Low and Moderate Income Housing set-aside and pass through allocations
) that it receives. The bonds issued were to
provide financing for various capital projects, accomplish Low and Moderate Income Housing projects and to defeas e previously issued bonds. A ssembly Bill 1X 26 provided that upon dissolution of the Redevelopment Agency, property taxes allocated to redevelopment agencies no longer are deemed tax increment but ra ther property tax revenues and will be allocated first to suc cessor agencies to make payments on the indebtedness incurred by the dissolved re development agency. Total principal and interest remaining on the debt is $11,449,418 w ith annual debt service requirements as indicated above. For the current year, the to tal property tax revenue recognized by the City and Successor Agency for the payment of indebtedness incurred by the dissolved redevelopment agency was $2,893,695 and the de bt service obligation on the bonds was $1,776,579. The Successor Agency was able to cove r the debt service obligations for the year ended June 30, 2025.
e. Successor Agency Unfunded Liabilities
When redevelopment agencies dissolved, th ere was a certain level of unfunded accrued liab
ilities related to other post-employment benefits (retiree heal thcare) and pension benefits that the employees of the former redevelopment agency had accrued. In order to keep these liabilities with the Successor Agen cy, the liabilities need to be placed on a recognized obligation payment schedule (RO PS) and obtain approval from the Successor Agency Board, the Oversight Board and the State Department of Finance in order to become an enforceable obligation.

During the ROPS 15-16B process, the unfunded accru ed liability was calculated, placed on the ROPS and approved by all three entities including the State Department of Finance. The total approved liability is $2,053,403, is made up of $1,366,885 for the OPEB; $660,681 for the CalPERS pension; and $25,837 for the CalPERS side fund and is being amortized over a 20 y ear; 22 year; and 12 year period, respectively. As of June 30, 2024 the unfunded accrued liability is $1,852,348. However, subsequent to the ROPS 15-16B approval, the liability was rejected by the DOF. The City met and conferred over the issue witch the DOF reasse rted their conclusion. The City is currently weighing their options.
f. Insurance
The Successor Agency is covered under the City of Bell Garden’s in surance policies.

Therefore, the limitation and self-insured reten tions applicable to the City also apply to the Successor Agency. Additional information as to coverage and self-insured retentions can be found in Note 9.
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70 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(14) Other Required Disclosures
Deficit Fund Balances
The following funds had deficit fund balances as of June 30, 2025:

Anson Ford Park $5,110,801 (a)
Capital Improvement Projects 6,822,550 (a)
Nonmajor Special Revenue Funds:

Community Development Block Grant 46,110 (a)
COPS (SLESF) 143,055 (a)
ABC Grant 363 (a)
JAG Grant 1,519 (a)
Measure W 432,006 (a)
(a) The deficit fund balance will be eliminated over time as revenues exceed expenditures. (16) Subsequent Events
On September 28, 2024, the Gover nor signed the Senate Bill 549: Gaming: Trial Nations Access to Justice Act (SB 549) into law. This law allows Indian tr ibes to bring legal action against California licensed card clubs and third-party proposition player services providers (TPPP) to seek a de claration as to whether controlled Las Vegas-style games operated by those card clubs and banked by TPPP violate state law. A court declaration in favor of the Indian tribe would stop almost all controlled ga mes at local card clubs like the Bicycle Casino in Bell Gardens. The potential adverse financial effect to th e City is the loss of five million per fiscal year from the General Fund.

Management has evaluated subsequent events through April 13, 2026 which is the date the financial statements were available to be issued, and has determined that there are no transactions that will have a significant impact on the City. ���������������

71 REQUIRED SUPPLEMENTARY INFORMATION
���������������
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:

Taxes and assessments 27,027,148 $ 27,027,148 26,480,219 (546,929) Licenses and permits 629,278 629,278 621,760 (7,518) Intergovernmental 5,705,170 5,705,170 6,447,441 742,271 Charges for services 370,690 370,690 287,921 (82,769) Use of money and property 6,011,002 6,011,002 6,194,312 183,310 Fines and forfeitures 1,179,608 1,179,608 1,459,003 279,395 Contributions - - 250,000 250,000 Other revenue 1,500,407 1,500,407 1,895,167 394,760 Total revenues 42,423,303 42,423,303 43,635,823 1,212,520 Expenditures:

Current:

General government 9,512,861 9,512,861 8,768,378 744,483 Public works 6,267,657 6,267,657 5,891,471 376,186 Public safety 18,820,422 18,820,422 18,439,256 381,166 Community development 2,215,866 2,215,866 2,001,053 214,813 Parks and recreation 5,710,364 5,710,364 5,643,142 67,222 Capital outlay 18,349,640 18,349,640 11,283,043 7,066,597 Debt service:

Interest and fiscal charges 317,655 317,655 351,501 (33,846) Principal retirement 292,810
292,810 258,904 33,906
Total expenditures 61,487,275 61,487,275 52,636,748 8,850,527 Excess (deficiency) of revenues
over (under) expenditures (19,063,972) (19,063,972) (9,000,925) 10,063,047 Other financing sources (uses):

Transfers in 1,184,353 1,184,353 146,865 (1,037,488) Transfers out (2,763,121) (2,763,121) (3,696,263) (933,142) Total other financing sources (uses) (1,578,768) (1,578,768) (3,549,398) (1,970,630) Net change in fund balances (20,642,740) (20,642,740) (12,550,323) 8,092,417 Fund balance, beginning of year 37,980,823 37,980,823 37,980,823 - Fund balance, end of year 17,338,083 $ 17,338,083 25,430,500 8,092,417

CITY OF BELL GARDENS
General Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2025
Budget Amounts
72 ���������������
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:

Intergovernmental - $ - 3,010,281 3,010,281 Charges for services 267,500 267,500 492,695 225,195 Total revenues 267,500 267,500 3,502,976 3,235,476 Expenditures:

Current:

Parks and recreation 350,100 350,100 252,225 97,875 Capital outlay 1,445,282 1,445,282 8,721,160 (7,275,878) Total expenditures 1,795,382 1,795,382 8,973,385 (7,178,003) Net change in fund balances (1,527,882) (1,527,882) (5,470,409) (3,942,527) Fund balance, beginning of year 359,608 359,608 359,608 - Fund balance (deficit), end of year (1,168,274)$ (1,168,274) (5,110,801) (3,942,527)

CITY OF BELL GARDENS
Anson Ford Park Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2025
Budget Amounts
73 ���������������

74 CITY OF BELL GARDENS

NOTES TO REQUIRED SUPPLEMENTARY INFORMATION

June 30, 2025

Stewardship, Compliance and Accountability

General Budget Policies

The City’s budget is prepared under the di rection of the City Manager. Revenues are budgeted based on source. Expenditure s are budgeted by functions, with sub classification by department and object of expenditures.

The City Council approves each year’s budget submitted by the City Manager prior to the beginning of the new fiscal year. It includes proposed expenditures and estimated revenues and is legally adopted on a basis consistent with generally accepted accounting principles. Presentations are provided to th e Council prior to the a doption of the budget.

The City Manager is authorized to transf er budgeted amounts between departments and object categories, and also between program s. Council approval is required only for transfers of budgeted am ounts between funds, or for an in crease in total appropriations.

Supplemental appropriations, where required du ring the period are also approved by the Council. Budgeted expenditures are controlled at the fund level. During the year, several supplemental appropriations we re necessary. At fiscal year-end, all operating budget appropriations lapse. Capital related appropriations may be carried forward to subsequent years.

The following funds do not have legally adopted budgets:

Academic Special Revenue Fund
JAG Special Revenue Fund
SB 1 Road Maintenance Special Revenue Fund

���������������
Report date: June 30, 2025 June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Measurement period: 2023-24 2022-23 2021-22 2020-21 2019-20 Proportion of the net pension liability (asset) 0.16168% 0.15897% 0.15848% 0.17708% 0.14396% Proportionate share of the net pension
liability (asset) 19,607,443 $ 19,831,676 $ 18,306,182 $ 9,576,902 $ 15,663,818 $ Covered payroll
1 8,717,024$ 7,524,650 $ 6,724,054 $ 6,001,542 $ 6,147,303 $ Proportionate Share of the net pension liability
(asset) as percentage of covered payroll 224.93% 263.56% 272.25% 159.57% 254.81% Proportionate Share of the Fiduciary Net Position
as a percentage of the Total Pension Liability 74.46% 72.11% 72.17% 84.25% 73.17% Proportionate Share of Aggregate Employer
Contributions 2,181,436 $ 2,131,991 $ 2,462,970 $ 2,015,634 $ 1,908,415 $ Report date: June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Measurement period: 2018-19 2017-18 2016-17 2015-16 2014-15 Proportion of the net pension liability (asset) 0.14168% 0.13867% 0.13756% 0.13644% 0.13592% Proportionate share of the net pension
liability (asset) 14,517,728 $ 13,362,387 $ 13,642,621 $ 11,806,379 $ 9,329,086 $ Covered payroll
1 6,070,128$ 6,415,166 $ 6,527,431 $ 5,988,354 $ 5,673,946 $ Proportionate Share of the net pension liability
(asset) as percentage of covered payroll 239.17% 208.29% 209.00% 197.16% 164.42% Proportionate Share of the Fiduciary Net Position
as a percentage of the Total Pension Liability 73.99% 74.75% 72.58% 73.42% 77.67% Proportionate Share of Aggregate Employer
Contributions 1,710,852 $ 1,506,791 $ 1,366,134 $ 1,214,243 $ 1,122,673 $ 1 Covered Payroll represented above is based on pensionable earnings provided by the employer. However, GASB 68 defines covered-employee payroll as the total of employees that are provided pensions through the pension plan. Accordingly, if pensionable earnings are different than total earnings for covered-employees, total earnings for covered-employees, the employer should display in the disclosure footnotes the payroll based on total earnings for the covered group and recalculate the required payroll-related ratios.

Notes to Schedule:

Benefit Changes
: The figures above do not include any liability impact that may have resulted from plan changes which occurred after June 30, 2015. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes)
Changes in assumptions: The discount rate was changed from 7.65 percent (net of administrative expense) to 7.15 percent to correct for an adjustment to exclude administrative expense for June 30, 2018.

CITY OF BELL GARDENS
Schedule of Proportionate Share of the Net Pension Liability and Related Ratios June 30, 2025
Cost Sharing Defined Benefit Pension Plan - Miscellaneous Last 10 Fiscal Years
75 ���������������
Report date: June 30, 2025 June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Measurement period: 2023-24 2022-23 2021-22 2020-21 2019-20 Actuarially determined contribution 1
2,632,690$ 2,297,697 $ 2,164,373 $ 1,941,251 $ 1,728,516 $ Contributions in relation to the
actuarially determined contributions 1
(2,632,690)$ (2,297,697) $ (2,164,373) $ (1,941,251) $ (1,728,516) $ Contribution deficiency (excess) - $ - $ - $ - $ - $ Covered payroll 2
9,296,273$ 8,717,024 $ 7,524,650 $ 6,724,055 $ 6,001,542 $ Contributions as a percentage of
covered payroll 2

28.32% 26.36% 28.76% 28.87% 28.80%
Report date: June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Measurement period: 2018-19 2017-18 2016-17 2015-16 2014-15 Actuarially determined contribution 1
1,593,412$ 1,423,751 $ 1,305,689 $ 1,172,671 $ 1,037,345 $ Contributions in relation to the
actuarially determined contributions 1
(1,593,412)$ (1,423,751) $ (1,305,689) $ (1,172,671) $ (1,037,345) $ Contribution deficiency (excess) - $ - $ - $ - $ - $ Covered payroll 2
6,114,728$ 6,197,447 $ 6,651,409 $ 6,235,996 $ 5,786,499 $ Contributions as a percentage of
covered payroll 2

26.06% 22.97% 19.63% 18.80% 17.93%
1 Employee are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions. CalPERS has determined that employer obligations referred to as "side funds" do not conform to the circumstances described in paragraph 120 of GASB 68, therefore are not considered separately financed specific liabilities. 2 Covered Payroll represented above is based on pensionable earnings provided by the employer. However, GASB 68 defines covered-employee payroll as the total of employees that are provided pensions through the pension Plan. Accordingly, if pensionable earnings are different than total earnings for covered-employees, total earnings for covered-employees, the employer should display in the disclosure footnotes the payroll based on total earnings for the covered group and recalculate the required payroll-related ratios.

Notes to Schedule:

The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal 2015-16 were from the June 30, 2013 public agency valuations.

Actuarial cost method Entry-age
Amortization method/period For detail, see June 30, 2013 Funding Valuation Report Asset valuation method Actuarial Value of Assets. For details see June 30, 2012 Funding Valuation Report Inflation 2.75%
Salary increases Varies by Entry Age and Service
Payroll growth 3.00%
Investment rate of return 7.5% Net of Pension Plan Investment and Administrative expenses, including inflation Retirement age The probabilities of Retirement are based on the 2010 CalPERS Experience Study for the period from 1997 to 2007.

Mortality The probabilities of mortality are based on the 2010 CalPERS Experience Study for the period from 1997 to 2007. Pre-retirement and Post-Retirement mortality reats included 5 years of projected mortality improvement using Scale AA published by the Society of Actuaries.

CITY OF BELL GARDENS
Schedule of Plan Contributions - Defined Benefit Pension Plan June 30, 2025
Cost Sharing Defined Benefit Pension Plan - Miscellaneous Last 10 Fiscal Years
76 ���������������
Report date: June 30, 2025 June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Measurement period: 2023-24 2022-23 2021-22 2020-21 2019-20 Proportion of the net pension liability (asset) 0.27174% 2.68140% 0.26890% 0.35031% 0.25491% Proportionate share of the net pension
liability (asset) 32,954,822 $ 33,451,870 $ 31,060,236 $ 18,945,970 $ 27,735,721 $ Covered payroll
1 6,100,203$ 5,963,131 $ 5,668,949 $ 5,149,405 $ 5,527,368 $ Proportionate Share of the net pension liability
(asset) as percentage of covered payroll 540.23% 560.98% 547.90% 367.93% 501.79% Proportionate Share of the Fiduciary Net Position
as a percentage of the Total Pension Liability 71.86% 70.16% 71.09% 77.31% 71.74% Proportionate Share of Aggregate Employer
Contributions 3,107,716 $ 3,134,314 $ 5,094,515 $ 3,449,574 $ 3,645,018 $ Report date: June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Measurement period: 2018-19 2017-18 2016-17 2015-16 2014-15 Proportion of the net pension liability (asset) 0.25795% 0.26512% 0.26462% 0.27618% 0.29656% Proportionate share of the net pension
liability (asset) 26,432,318 $ 25,547,563 $ 26,242,972 $ 23,898,271 $ 20,355,288 $ Covered payroll
2 5,734,040$ 6,080,034 $ 5,685,550 $ 5,339,083 $ 5,076,167 $ Proportionate Share of the net pension liability
(asset) as percentage of covered payroll 460.97% 420.19% 461.57% 447.61% 401.00% Proportionate Share of the Fiduciary Net Position
as a percentage of the Total Pension Liability 71.89% 71.24% 68.85% 68.48% 71.66% Proportionate Share of Aggregate Employer
Contributions 2,963,859 $ 2,699,487 $ 2,001,511 $ 1,793,929 $ 1,751,135 $ 1 Covered Payroll represented above is based on pensionable earnings provided by the employer. However, GASB 68 defines covered-employee payroll as the total of employees that are provided pensions through the pension plan. Accordingly, if pensionable earnings are different than total earnings for covered-employees, total earnings for covered-employees, the employer should display in the disclosure footnotes the payroll based on total earnings for the covered group and recalculate the required payroll-related ratios.

Notes to Schedule:

Benefit Changes
: The figures above do not include any liability impact that may have resulted from plan changes which occurred after June 30, 2015. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes)
Changes in assumptions: The discount rate was changed from 7.65 percent (net of administrative expense) to 7.15 percent to correct for an adjustment to exclude administrative expense for June 30, 2018.

CITY OF BELL GARDENS
Schedule of Proportionate Share of the Net Pension Liability and Related Ratios June 30, 2025
Cost Sharing Defined Benefit Pension Plan - Safety
Last 10 Fiscal Years
77 ���������������
Report date: June 30, 2025 June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Measurement period: 2023-24 2022-23 2021-22 2020-21 2019-20 Actuarially determined contribution 1
3,894,273$ 3,454,382 $ 3,404,444 $ 3,090,686 $ 2,751,377 $ Contributions in relation to the
actuarially determined contributions 1
(3,894,273)$ (3,454,382) $ (3,404,444) $ (3,090,686) $ (2,751,377) $ Contribution deficiency (excess) - $ - $ - $ - $ - $ Covered payroll 2
6,291,642$ 6,100,206 $ 5,963,131 $ 5,668,950 $ 5,149,406 $ Contributions as a percentage of
covered payroll 2

61.90% 56.63% 57.09% 54.52% 53.43%
Report date: June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Measurement period: 2018-19 2017-18 2016-17 2015-16 2014-15 Actuarially determined contribution 1
3,781,851$ 3,479,779 $ 3,299,926 $ 2,972,647 $ 2,712,086 $ Contributions in relation to the
actuarially determined contributions 1
(3,781,851)$ (3,479,779) $ (3,299,926) $ (2,972,647) $ (2,712,086) $ Contribution deficiency (excess) - $ - $ - $ - $ - $ Covered payroll 2
5,527,368$ 5,680,282 $ 6,279,665 $ 5,655,412 $ 5,316,837 $ Contributions as a percentage of
covered payroll 2

68.42% 61.26% 52.55% 52.56% 51.01%
1 Employee are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions. CalPERS has determined that employer obligations referred to as "side funds" do not conform to the circumstances described in paragraph 120 of GASB 68, therefore are not considered separately financed specific liabilities. 2 Covered Payroll represented above is based on pensionable earnings provided by the employer. However, GASB 68 defines covered-employee payroll as the total of employees that are provided pensions through the pension Plan. Accordingly, if pensionable earnings are different than total earnings for covered-employees, total earnings for covered-employees, the employer should display in the disclosure footnotes the payroll based on total earnings for the covered group and recalculate the required payroll-related ratios.

Notes to Schedule:

The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal 2015-16 were from the June 30, 2013 public agency valuations.

Actuarial cost method Entry-age
Amortization method/period For detail, see June 30, 2013 Funding Valuation Report Asset valuation method Actuarial Value of Assets. For details see June 30, 2012 Funding Valuation Report Inflation 2.75%
Salary increases Varies by Entry Age and Service
Payroll growth 3.00%
Investment rate of return 7.5% Net of Pension Plan Investment and Administrative expenses, including inflation Retirement age The probabilities of Retirement are based on the 2010 CalPERS Experience Study for the period from 1997 to 2007.

Mortality The probabilities of mortality are based on the 2010 CalPERS Experience Study for the period fro m
1997 to 2007. Pre-retirement and Post-Retirement mortality reats included 5 years of projected mortality improvement using Scale AA published by the Society of Actuaries.

CITY OF BELL GARDENS
Schedule of Plan Contributions - Defined Benefit Pension Plan June 30, 2025
Cost Sharing Defined Benefit Pension Plan - Safety
Last 10 Fiscal Years
78 ���������������
Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2024-25 2023-24 2022-23 2021-22 2020-21
Total OPEB Liability
Service cost 2,260,305 $ 2,236,434 $ 2,246,094 $ 3,305,603 $ 3,178,212 $ Interest on the total OPEB Liability 2,729,801 2,377,967 2,244,436 1,731,289 1,665,893 Actual and expected experience difference - (116,314) - (2,646,712) - Changes in assumptions (11,930,022) 1,195,328 (1,213,094) (17,288,971) 618,446 Benefit payments ** (1,931,065) (1,561,431) (1,488,499) (1,154,654) (1,038,109) Net change in total OPEB liability (8,870,981) 4,131,984 1,788,937 (16,053,445) 4,424,442 Total OPEB liability - beginning 68,944,258 64,812,274 63,023,337 79,076,782 74,652,340 Total OPEB liability - ending (a) 60,073,277$ 68,944,258 $ 64,812,274 $ 63,023,337 $ 79,076,782 $ Plan Fiduciary Net Position
Contribution - employer 1,931,065 $ 1,561,431 $ 1,488,499 $ 1,154,654 $ 1,038,109 $ Net investment income 41,181 40,557 16,124 (35,993) 60,345 Benefit payments ** (1,931,065) (1,561,431) (1,488,499) (1,154,654) (1,038,109) Administrative expense (2,018) (1,762) (1,602) (1,818) (1,635) Net change in plan fiduciary net position 39,163 38,795 14,522 (37,811) 58,710 Plan fiduciary net position - beginning 325,106 286,311 271,789 309,600 250,890 Plan fiduciary net position - ending (b) 364,269$ 325,106 $ 286,311 $ 271,789 $ 309,600 $ Net OPEB liability - ending (a)-(b) 59,709,008$ 68,619,152 $ 64,525,963 $ 62,751,548 $ 78,767,182 $ Employee payroll 15,609,113 $ 14,907,080 $ 13,664,789 $ 12,402,855 $ 11,231,170 $ Net OPEB liability as a percentage of
employee payroll 382.53% 460.31% 472.21% 505.94% 701.33% Notes to Schedule
Historical information is required only for measurement periods for which GASB 75 is applicable. Future years' information will be displayed up to 10 years as information becomes available.
* - Fiscal year 2017-18 was the 1st year of implementation, therefore only eight years are shown. ** - Benefit payments include refunds and the implied subsidy benefit payments.

CITY OF BELL GARDENS
Schedule of Changes in the Net OPEB Liability and Related Ratios Last 10 Fiscal Years *
79 ���������������
Fiscal Year Fiscal Year Fiscal Year
2019-20 2018-19 2017-18
Total OPEB Liability
Service cost 2,397,228 $ 2,333,069 $ 2,325,434 $
Interest on the total OPEB Liability 2,178,333 2,179,874 2,038,237 Actual and expected experience difference 4,479,863 - - Changes in assumptions (1,846,156) 4,445,153 (1,183,098) Benefit payments ** (1,023,490) (881,139) (827,361) Net change in total OPEB liability 6,185,778 8,076,957 2,353,212 Total OPEB liability - beginning 68,466,562 60,389,605 58,036,393 Total OPEB liability - ending (a) 74,652,340$ 68,466,562 $ 60,389,605 $ Plan Fiduciary Net Position
Contribution - employer 1,023,490 $ 881,139 $ 827,361 $ Net investment income 9,798 15,543 13,744 Benefit payments ** (1,023,490) (881,139) (827,361) Administrative expense (1,304) (575) (559) Net change in plan fiduciary net position 8,494 14,968 13,185 Plan fiduciary net position - beginning 242,396 227,428 214,243 Plan fiduciary net position - ending (b) 250,890$ 242,396 $ 227,428 $ Net OPEB liability - ending (a)-(b) 74,401,450$ 68,224,166 $ 60,162,177 $ Employee payroll 11,586,109 $ 12,414,529 $ 12,895,877 $ Net OPEB liability as a percentage of
employee payroll 642.16% 549.55% 466.52%

CITY OF BELL GARDENS
Schedule of Changes in the Net OPEB Liability and Related Ratios (Continued) Last 10 Fiscal Years *
80 ���������������
Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2024-25 2023-24 2022-23 2021-22 2020-21
Actuarially determine contribution 1,931,065$ 1,561,431 $ 1,488,499 $ 1,154,654 $ 1,038,109 $ Contribution in relation to the
actuarially determined contributions (1,931,065) (1,561,431) (1,488,499) (1,154,654) (1,038,109) Contribution excess - $ - $ - $ - $ - $ Employee payroll 15,610,873 $ 14,907,080 $ 13,644,789 $ 12,402,855 $ 11,231,170 $ Contributions as a percentage
of employee payroll 12.37% 10.47% 10.91% 9.31% 9.24%
Fiscal Year Fiscal Year Fiscal Year
2019-20 2018-19 2017-18
Actuarially determine contribution 1,023,490$ 881,139 $ 823,361 $ Contribution in relation to the
actuarially determined contributions (1,023,490) (881,139) (823,361) Contribution excess - $ - $ - $
Employee payroll 11,586,109 $ 12,414,529 $ 12,895,877 $ Contributions as a percentage
of employee payroll 8.83% 7.10% 6.38%
Notes to Schedule
Actuarial cost method Entry-age
Amortization method/ Level percent of pay
period
Asset valuation method Fair value of assets
Inflation 2.75%
Payroll growth 2.75% per year
Investment rate of return 6% Net of Pensin Plan Investment and Administrative expenses, includes inflation
Healthcare Cost-Trend Assumed increases occur once each year with premium increases Rates of 7.0% on 1/1/19 with increases of 0.5% less each January 1 thereafter through 2024. Assumed 5% increases for year 2024 and later.

Mortality The probabilties of mortality are based on the 2010 CalPERS Experience Study for the period from 1997 to 2007. Pre-retirement and Post-Retirement mortality rates incuded 5 years of projected mortality improvement using Scale AA published by the Society of Actuaries.
* - Fiscal year 2017-18 was the 1st year of implementation, therefore only eight years are shown. ** - Benefit payments include refunds and the implied subsidy benefit payments.

CITY OF BELL GARDENS
Schedule of Plan Contributions - OPEB Plan
Last 10 Fiscal Years *
81 ���������������

82 SUPPLEMENTARY INFORMATION

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83 CITY OF BELL GARDENS

NONMAJOR GOVERNMENTAL FUNDS
June 30, 2025
SPECIAL REVENUE FUNDS:

Public Safety Augmentation (PSAF) – This is Proposition 172 fund specified for the receipt of ½ cent state sales tax for local public safety services. This fund is used to account for jail services and training.

COPS State (SLEF) – The Citizens Option for Public Safety (COPS) program was originally adopted in AB3229 (Brulte) 1996 with funding from the state general fund. This fund is to be used to support front-line law enforcement, county jails, district attorneys for prosecution and local juvenile justice programs. This fund supports the City’s jail operation in the Public Safety Augmentation fund.

State Gas Tax - This fund is used to account for revenues and expenditures under California Streets and Highways Code Sections 2105, 2106, 2107 and 2107.5. A portion of the excise tax collected on gasoline is allocated to cities an d these funds are expended for street improvement and maintenance programs.

Asset Forfeiture – This fund accounts for revenues received from asset seizures which can only be used to augment law enforcement expenditures.

Waste Management – This fund is to account for the collection of a waste surcharge from consumers used to finance waste management programs.

Community Development Block Grant – This fund accounts for revenues received from the U.S. Department of Housing and Urban Develo pment for housing rehabilitation and other community improvement projects.

Proposition A - This fund is used to account for revenues and expenditures related to a half-cent sales tax under Proposition A approved by Los Angeles County voters in 1980. A portion of Proposition A funds is allocated to cities and these funds must be used exclusively to benefit public transit. Expenditures related to fixed rout e and paratransit services, transportation demand management, transportation systems management and fare subsidy programs that exclusively benefit transit are all eligible uses of Proposition A funds.

Proposition C - This fund is used to account for revenues and expenditures related to a half-cent sales tax under Proposition C approved by Los Angeles County voters in 1990. A portion of Proposition C funds is allocated to cities and thes e funds must be used to benefit public transit, congestion management programs, bikeways and bike lanes, street improvements supporting public transit service, and pavement management system projects.

Air Quality Improvement - This fund is used to account for revenues and expenditures under California Assembly Bill 2766 signed into law in 1990, under the California Health and Safety Code Sections 44220 - 44247. AB 2766 provides for the collection of an additional fee in motor vehicle registration fees, a portion of which is allocated to cities to fund various air pollution reduction programs.

Recycling Grant – This fund accounts for the state gran t used for the specific purpose of recycling oil.
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84 CITY OF BELL GARDENS

NONMAJOR GOVERNMENTAL FUNDS
June 30, 2025
SPECIAL REVENUE FUNDS:

Academic Pursuit – This fund is used to account for the interest income generated from designated principal in the General Fund to be used only for Academic Grants for qualified residents of the City of Bell Gardens.

Post-Employment Benefits – This fund is used to account for payment of certain health insurance benefits available to eligible retired employees.

Measure R - This fund is used to account for revenues and expenditures related to a half cent sales tax under Measure R approved by Los Angeles County voters in November 2008. A portion of Measure R funds is allocated to cities and these funds must be used for streets and roads, traffic control measures, bikeways and pedestrian impr ovements, public transit services and capital improvements, transportation marketing, and congestion management program.

ABC Grant –The Department of Alcoholic Beverage Control (“ABC”) offers grant opportunities once a year for qualified law enforcement agencies. The ABC Grant provides an opportunity for BGPD to establish close working relationships between ABC district offices and prioritize law enforcement efforts. This fund accounts for th e receipt and use of the ABC grant funds.

JAG Grant – The Edward Byrne Justice Assistance Grant (JAG) Program annually provides funding to local police agencies for programs or items related to local initiatives, technical assistance, training, personnel, equipment, suppli es, contractual support, and information systems related to law enforcement services. This fund ac counts for the receipt and use of the JAG grant funds.

COPS Grant - This fund is used to account for revenues and expenditures related to a 1% fee on cable television and other video subscription services to fund the purchase and acquisition of capital equipment and facilities necessary to program and broadcast PEG (public, education, and government) events on designated cable channels.

Low and Moderate Housing – This fund is used to account for the assets of the former Community Development Commission’s Low and Moderate Housing Fund. The fund accounts for transactions related to affordable housing activities.

SB 1 Road Maintenance – This fund is used to account for the revenues raised by the Road Repair and Accountability Act of 2017 (SB 1) and allocated to the City for investment in transportation systems. At the end of the fiscal ye ar, the City transfers all revenues received to the Gas Tax fund to support the SB 1 projects.

Measure M - This fund will be used to meet the goals of improving freeway traffic flow; accelerating rail construction and building rail lines enhancing local regional and express bus service, bike and pedestrian connections; impr oving transportation system connectivity, streets and intersections; addressing transit and highway safety; providing more accessibility, convenience, and affordability of transportati on for seniors, students and the disabled; and incorporating modern technology in the transportation system. ���������������

85 CITY OF BELL GARDENS

NONMAJOR GOVERNMENTAL FUNDS

June 30, 2025
SPECIAL REVENUE FUNDS:

CalHome Grant - This CalHome Grant Program provides grants to local public agencies and nonprofit corporations for first-time homebuyer an d housing rehabilitation assistance, homebuyer counseling and technical assistance activities to enable low-and very low-income households to become or remain homeowners. This fund accounts for the receipt and use of the CalHome Grant funds.

Office of Traffic Safety Grant – This fund was established to account for the receipt and disbursement of federal grant monies received th rough the State Office of Traffic Safety. These funds are restricted for operations utilized to en hance traffic safety and to reduce drunk driving within the City.

Measure W - This fund is used to account for financia l transactions for projects dedicated to increase local water supply, improve wate r quality, and protect public health.

Transportation Development Act - This fund is used to account for the receipt and expenditure of Transportation Development Act Article 3 (TDA3) funds. These funds are restricted for bicycle and pedestrian projects, including the planning, de velopment, and maintenance of facilities that promote alternative modes of tr ansportation within the City.

���������������
Public
Safety COPS State
Augmentation State Gas Asset
(PSAF) (SLESF) Tax Forfeiture
ASSETS
Cash and investments 930,034$ - 2,018,886 1,123,885 Receivables:

Accounts - - - -
Notes and loans - - - -
Interest 3,652 851 - 5,970
Due from other governments
33,152 -
93,436
2,163
Prepaid items
- - - -
Total assets
966,838$ 851 2,112,322 1,132,018

LIABILITIES
Accounts payable 734$ - 58,793 7,042
Accrued liabilities - - - -
Due to other governments - - - - Unearned revenue - - - -
Deposits payable - - - 103,982
Due to other funds - 143,906 - -
Total liabilities
734 143,906 58,793 111,024

DEFERRED IN FLOWS OF RESOURCES
Unavailable revenue - - - -
Total deferred in flows
(outflows) of resources
- - - -

FUND BALANCES
Restricted 966,104 - 2,053,529 1,020,994
Assigned - - - -
Unassigned - (143,055) - -
Total fund balances (deficits)
966,104 (143,055) 2,053,529 1,020,994
Total liabilities, deferred inflows
and fund balances 966,838$ 851 2,112,322 1,132,018

CITY OF BELL GARDENS
Nonmajor Governmental Funds
Combining Balance Sheet
June 30, 2025
Special Revenue Funds
86 ���������������
Community
Development
Waste Block Proposition Proposition Air Quality Recycling Academic Management Grant A C Improvement Grant Pursuit
866,063 190,410 1,130,488 1,865,335 40,961 156,928 - - - - - - - - - 1,837,233 - - - - 341,282 - 49 6,187 10,297 35 898 - 245,503 1,762,590 - - 13,360 - - - 34,824 - - - - - 1,111,566 3,825,106 1,136,675 1,875,632 54,356 157,826 341,282 32,845 177,737 68,519 161,696 114 537 - - - - - - - - - 191,142 - - - - - - - - - - - - - - - - - - - - - - - - - - 32,845 368,879 68,519 161,696 114 537 - - 3,502,337 - - - - 341,282 - 3,502,337 - - - - 341,282 1,078,721 - 1,068,156 1,713,936 54,242 157,289 - - - - - - - - - (46,110) - - - - - 1,078,721 (46,110) 1,068,156 1,713,936 54,242 157,289 - 1,111,566 3,825,106 1,136,675 1,875,632 54,356 157,826 341,282 Special Revenue Funds
87 ���������������
Post- Low and
Employment Measure ABC JAG COPS Moderate
Benefits R Grant Grant Grant Housing
ASSETS
Cash and investments 186,267 $ 1,753,283 - - 214,467 2,911,309 Receivables:

Accounts - - - - - - Notes and loans - - - - - 6,845,316 Interest - 9,325 - - 1,185 - Due from other governments - - - - - - Prepaid items -
- - - - -
Total assets 186,267 $ 1,762,608 - - 215,652 9,756,625

LIABILITIES
Accounts payable 41,777 $ 37,228 - - - - Accrued liabilities - - - - - - Due to other governments - - - - - - Unearned revenue - - - - - - Deposits payable - - - - - - Due to other funds - - 363 1,519 - - Total liabilities 41,777 37,228 363 1,519 - -

DEFERRED IN FLOWS OF RESOURCES
Unavailable revenue - - - - 127,190 6,845,316 Total deferred in flows (outflows)
of resources -
- - - 127,190 6,845,316

FUND BALANCES
Restricted - 1,725,380 - - 88,462 2,911,309 Assigned 144,490 - - - - - Unassigned - - (363) (1,519) - - Total fund balances (deficits) 144,490 1,725,380 (363) (1,519) 88,462 2,911,309 Total liabilities, deferred inflows
and fund balances 186,267 $ 1,762,608 - - 215,652 9,756,625 Special Revenue Funds

CITY OF BELL GARDENS
Nonmajor Governmental Funds, Continued
Combining Balance Sheet
June 30, 2025
88 ���������������
Office of Total
SB 1 Traffic Transportation Nonmajor
Road Measure CalHome Safety Measure Development Governmental Maintenance M Grant Grant W Act Funds
- 1,742,712 - 62,206 - 2,345 15,195,579 - - - - - - - - 829,154 - - - 9,852,985 4,976 9,153 - - - 13 52,591 90,321 - 1,081,223 - 37,545 - 3,359,293 - - - - - - 34,824 95,297 1,751,865 1,910,377 62,206 37,545 2,358 28,495,272 - 1,620 67,071 - 5,208 - 660,921 - - - - - - - - - - - - 191,142 - - - - - - - - - - - - - 103,982 95,297 - 514,481 - 426,798 - 1,182,364 95,297 1,620 581,552 - 432,006 - 2,138,409 - - 1,141,754 - 37,545 - 11,995,424 - - 1,141,754 - 37,545 - 11,995,424 - 1,750,245 187,071 62,206 - 2,358 14,840,002 - - - - - 144,490 - - - - (432,006) - (623,053) - 1,750,245 187,071 62,206 (432,006) 2,358 14,361,439 95,297 1,751,865 1,910,377 62,206 37,545 2,358 28,495,272 Special Revenue Funds
89 ���������������
Public
Safety COPS State
Augmentation State Gas Asset
(PSAF) (SLESF) Tax Forfeiture
Revenues:

Taxes and assessments - $ - - - Intergovernmental 189,398 194,663 2,172,043 14,315 Charges for services - - - -
Use of money and property 17,983 2,514 18,860 23,465 Fines and forfeitures - - - 922,397 Other revenue 259 - - -
Total revenues 207,640 197,177 2,190,903 960,177 Expenditures:

Current:

General government - - - -
Public works - - 2,171,939
-
Public safety 361,643 - - 220,007
Community development - - - -
Parks and recreation - - - -
Capital outlay - - 131,801 -
Total expenditures 361,643 - 2,303,740 220,007 Excess (deficiency) of
revenues over
(under) expenditures (154,003) 197,177 (112,837) 740,170 Other financing sources (uses):

Transfers in 298,000 - 1,197,777
-
Transfers out - (298,000) - -
Total other financing
sources (uses)
298,000 (298,000) 1,197,777 -
Net change in fund balances 143,997 (100,823) 1,084,940 740,170 Fund balances (deficit), beginning of year 822,107 (42,232) 968,589 280,824 Fund balances (deficit), end of year 966,104$ (143,055) 2,053,529 1,020,994 Special Revenue Funds

CITY OF BELL GARDENS
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended June 30, 2025
90 ���������������
Community
Development
Waste Block Proposition Proposition Air Quality Recycling Academic Management Grant A C Improvement Grant Pursuit
4,697,529 - 1,008,800 836,774 - - - - 2,039,440 81,790 - 64,094 15,694 - - - - 39,975 - - - - 158 23,657 56,844 545 3,779 - - - - - - - - - - - - - - - 4,697,529 2,039,598 1,114,247 933,593 64,639 19,473 - - - - - - - - 4,376,039 - 789,718 663,167 - 9,515 - - - - - - - - - 834,276 - - - - - - - - - - - - - 1,453,353 - 1,211,097 25,431 - - 4,376,039 2,287,629 789,718 1,874,264 25,431 9,515 - 321,490 (248,031) 324,529 (940,671) 39,208 9,958 - - 552,788 - - - - - - - - - - - - - 552,788 - - - - - 321,490 304,757 324,529 (940,671) 39,208 9,958 - 757,231 (350,867) 743,627 2,654,607 15,034 147,331 - 1,078,721 (46,110) 1,068,156 1,713,936 54,242 157,289 - Special Revenue Funds
91 ���������������
Post- Low and
Employment Measure ABC JAG COPS Moderate
Benefits R Grant Grant Grant Housing
Revenues:

Taxes and assessments - $ - - - - - Intergovernmental - 627,464
16,152 - - -
Charges for services 74,380 -
- -
- -
Use of money and property - 41,992
-
- 5,194
102,473
Fines and forfeitures - - -
- - -
Other revenue - - - - - 70,082
Total revenues
74,380 669,456 16,152 - 5,194 172,555
Expenditures:

Current:

General government 1,708,755 -
- -
- -
Public works - 84,693
-
- - -
Public safety - - - - - -
Community development - - - - - - Parks and recreation - - - - - - Capital outlay - 825,122 - - - -
Total expenditures 1,708,755 909,815 - - - - Excess (deficiency) of
revenues over
(under) expenditures (1,634,375) (240,359) 16,152 - 5,194 172,555 Other financing sources (uses):

Transfers in 1,634,375 -
- -
- 153,828
Transfers out - - - - - -
Total other financing
sources (uses)
1,634,375 - - - - 153,828
Net change in fund balances - (240,359)
16,152 -
5,194
326,383
Fund balances (deficit), beginning of year 144,490 1,965,739 (16,515) (1,519) 83,268 2,584,926 Fund balances (deficit), end of year 144,490 $ 1,725,380 (363) (1,519) 88,462 2,911,309

CITY OF BELL GARDENS
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances, Continued For the Year ended June 30, 2025
Special Revenue Funds
92 ���������������
Office of Total
SB 1 Traffic Transportation Nonmajor
Road Measure CalHome Safety Measure Development Governmental Maintenance M Grant Grant W Act Funds
- - - - - - 6,543,103 - 710,896
476,110 120,499 317,282 34,790 7,074,630 - - - - - - 114,355 - 36,030
- - - 28
333,522
- - - - - - 922,397
- - - - - - 70,341
- 746,926 476,110 120,499 317,282 34,818 15,058,348 - - - - - - 1,708,755 - - - - 76,676 - 8,171,747 -
- - - - - 581,650
-
- 23,560 - - - 857,836
- - - - - - -
- 365,290 - 57,950 - 32,460 4,102,504
- 365,290 23,560 57,950 76,676 32,460 15,422,492 - 381,636 452,550 62,549 240,606 2,358 (364,144) - - - - - - 3,836,768 - - - - - - (298,000)
- - - - - - 3,538,768
- 381,636
452,550 62,549 240,606 2,358 3,174,624 - 1,368,609 (265,479) (343) (672,612) - 11,186,815
- 1,750,245 187,071 62,206 (432,006) 2,358 14,361,439 Special Revenue Funds
93 ���������������
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Intergovernmental 125,000 $ 189,398 64,398 Use of money and property 500 17,983 17,483 Other revenue - 259 259
Total revenues 125,500 207,640 82,140
Expenditures:

Current:

Public safety 358,000 361,643 (3,643)
Total expenditures 358,000 361,643 (3,643) Excess (deficiency) of revenues
over (under) expenditures (232,500) (154,003) 78,497 Other financing sources (uses):

Transfers in 298,000 298,000 -
Total other financing sources (uses) 298,000 298,000 - Net change in fund balances 65,500 143,997 78,497 Fund balance, beginning of year 822,107 822,107 - Fund balance, end of year 887,607 $ 966,104 78,497

CITY OF BELL GARDENS
Public Safety Augmentation (PSAF) Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2025
94 ���������������
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Intergovernmental 100,000 $ 194,663 94,663 Use of money and property 150 2,514 2,364 Total revenues 100,150 197,177 97,027
Expenditures:

Current:

Public safety - - -
Total expenditures - - -
Excess (deficiency) of revenues
over (under) expenditures 100,150 197,177 97,027 Other financing sources (uses):

Transfers out (298,000) (298,000) -
Total other financing sources (uses) (298,000) (298,000) - Net change in fund balances (197,850) (100,823) 97,027 Fund balance (deficit), beginning of year (42,232) (42,232) - Fund balance (deficit), end of year (240,082) $ (143,055) 97,027

CITY OF BELL GARDENS
COPS State (SLESF) Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2025
95 ���������������
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Intergovernmental 1,059,277 $ 2,172,043 1,112,766 Use of money and property - 18,860 18,860
Total revenues 1,059,277 2,190,903 1,131,626
Expenditures:

Current:

Public works 2,085,332 2,171,939 (86,607)
Capital outlay 214,906 131,801 83,105
Total expenditures 2,300,238 2,303,740 (3,502) Excess (deficiency) of revenues
over (under) expenditures (1,240,961) (112,837) 1,128,124 Other financing sources (uses):

Transfers in - 1,197,777 1,197,777
Total other financing sources (uses) - 1,197,777 1,197,777 Net change in fund balances (1,240,961) 1,084,940 2,325,901 Fund balance, beginning of year 968,589 968,589 - Fund balance (deficit), end of year (272,372) $ 2,053,529 2,325,901

CITY OF BELL GARDENS
State Gas Tax Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2025
96 ���������������
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Intergovernmental - $ 14,315 14,315 Use of money and property - 23,465 23,465 Fines and forfeitures 50,000 922,397 872,397 Total revenues 50,000 960,177 910,177 Expenditures:

Current:

Public safety 343,106 220,007 123,099
Total expenditures 343,106 220,007 123,099 Net change in fund balances (293,106) 740,170 1,033,276 Fund balance, beginning of year 280,824 280,824 - Fund balance (deficit), end of year (12,282) $ 1,020,994 1,033,276

CITY OF BELL GARDENS
Asset Forfeiture Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2025
97 ���������������
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Taxes and assessments 3,371,000 $ 4,697,529 1,326,529 Intergovernmental - - -
Total revenues 3,371,000 4,697,529 1,326,529
Expenditures:

Current:

Public works 4,672,587 4,376,039 296,548
Total expenditures 4,672,587 4,376,039 296,548 Net change in fund balances (1,301,587) 321,490 1,623,077 Fund balance, beginning of year 757,231 757,231 - Fund balance (deficit), end of year (544,356) $ 1,078,721 1,623,077

CITY OF BELL GARDENS
Waste Management Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2025
98 ���������������
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Intergovernmental 850,000 $ 2,039,440 1,189,440 Use of money and property - 158 158
Total revenues 850,000 2,039,598 1,189,598 Expenditures:

Current:

Community development 910,300 834,276 76,024 Capital outlay 1,163,148 1,453,353 (290,205)
Total expenditures 2,073,448 2,287,629 (214,181) Excess (deficiency) of revenues
over (under) expenditures (1,223,448) (248,031) 975,417 Other financing sources (uses):

Transfers in - 552,788 552,788
Total other financing sources (uses) - 552,788 552,788
Net change in fund balances (1,223,448) 304,757 1,528,205 Fund balance (deficit), beginning of year (350,867) (350,867) - Fund balance (deficit), end of year (1,574,315) $ (46,110) 1,528,205

CITY OF BELL GARDENS
Community Development Block Grant Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2025
99 ���������������
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Taxes and assessments 1,030,349 $ 1,008,800 (21,549) Intergovernmental - 81,790 81,790 Use of money and property - 23,657 23,657 Total revenues 1,030,349 1,114,247 83,898
Expenditures:

Current:

Public works 1,046,180 789,718 256,462
Total expenditures 1,046,180 789,718 256,462 Excess (deficiency) of revenues
over (under) expenditures (15,831) 324,529 340,360 Other financing sources (uses):

Transfers in 510,061 - (510,061) Total other financing sources (uses) 510,061 - (510,061) Net change in fund balances 494,230 324,529 (169,701) Fund balance, beginning of year 743,627 743,627 - Fund balance, end of year 1,237,857 $ 1,068,156 (169,701)

CITY OF BELL GARDENS
Proposition A Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2025
100
���������������
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Taxes and assessments 854,648 $ 836,774 (17,874) Charges for services 40,000 39,975 (25) Use of money and property 100 56,844 56,744 Total revenues 894,748 933,593 38,845
Expenditures:

Current:

Public works 797,210 663,167 134,043
Capital outlay 2,137,868 1,211,097 926,771
Total expenditures 2,935,078 1,874,264 1,060,814 Net change in fund balances (2,040,330) (940,671) 1,099,659 Fund balance, beginning of year 2,654,607 2,654,607 - Fund balance, end of year 614,277 $ 1,713,936 1,099,659

CITY OF BELL GARDENS
Proposition C Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2025
101
���������������
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Intergovernmental 54,000 $ 64,094 10,094 Use of money and property - 545 545 Total revenues 54,000 64,639 10,639 Expenditures:

Current:

Public works 36,500 - 36,500
Capital outlay 51,000 25,431 25,569 Total expenditures 87,500 25,431 62,069 Net change in fund balances (33,500) 39,208 72,708 Fund balance, beginning of year 15,034 15,034 - Fund balance (deficit), end of year (18,466) $ 54,242 72,708

CITY OF BELL GARDENS
Air Quality Improvement Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2025
102
���������������
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Intergovernmental 22,700 $ 15,694 (7,006) Use of money and property - 3,779 3,779 Total revenues 22,700 19,473 (3,227) Expenditures:

Current:

Public works 17,351 9,515 7,836
Total expenditures 17,351 9,515 7,836 Net change in fund balances 5,349 9,958 4,609 Fund balance, beginning of year 147,331 147,331 - Fund balance, end of year 152,680 $ 157,289 4,609

CITY OF BELL GARDENS
Recycling Grant Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2025
103
���������������
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Charges for services 60,000 $ 74,380 14,380 Total revenues 60,000 74,380 14,380 Expenditures:

Current:

General government 1,300,000 1,708,755 (408,755) Total expenditures 1,300,000 1,708,755 (408,755) Excess (deficiency) of revenues
over (under) expenditures (1,240,000) (1,634,375) (394,375) Other financing sources (uses):

Transfers in 1,300,000 1,634,375 334,375
Total other financing sources (uses) 1,300,000 1,634,375 334,375 Net change in fund balances 60,000 - (60,000) Fund balance, beginning of year 144,490 144,490 - Fund balance, end of year 204,490 $ 144,490 (60,000)

CITY OF BELL GARDENS
Post-Employment Benefits Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2025
104
���������������
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Intergovernmental 640,986 $ 627,464 (13,522) Use of money and property 3,000 41,992 38,992 Total revenues 643,986 669,456 25,470
Expenditures:

Current:

Public works 87,936 84,693 3,243
Capital outlay 1,544,740 825,122 719,618
Total expenditures 1,632,676 909,815 722,861 Net change in fund balances (988,690) (240,359) 748,331 Fund balance, beginning of year 1,965,739 1,965,739 - Fund balance, end of year 977,049 $ 1,725,380 748,331

CITY OF BELL GARDENS
Measure R Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2025
105
���������������
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Intergovernmental -$ 16,152 16,152 Total revenues - 16,152 16,152 Expenditures:

Current:

Public safety 25,000 - 25,000
Total expenditures 25,000 - 25,000 Net change in fund balances (25,000) 16,152 41,152 Fund balance (deficit), beginning of year (16,515) (16,515) - Fund balance (deficit), end of year (41,515) $ (363) 41,152

CITY OF BELL GARDENS
ABC Grants Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2025
106
���������������
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Use of money and property 500 $ 5,194 4,694 Total revenues 500 5,194 4,694 Expenditures:

Current:

Public safety - - -
Total expenditures - - -
Net change in fund balances 500 5,194 4,694 Fund balance, beginning of year 83,268 83,268 - Fund balance, end of year 83,768 $ 88,462 4,694

CITY OF BELL GARDENS
COPS Grant Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2025
107
���������������
Variance with
Final Budget
Actual Positive
Final Amounts (Negative)
Revenues:

Use of money and property 14,900$ 102,473 87,573 Other revenue - 70,082 70,082
Total revenues 14,900 172,555 157,655
Expenditures:

Current:

Community development - - -
Total expenditures - - -
Excess (deficiency) of revenues
over (under) expenditures 14,900 172,555 157,655 Other financing sources (uses):

Transfers in 144,238 153,828 9,590
Total other financing sources (uses) 144,238 153,828 9,590 Net change in fund balances 159,138 326,383 167,245 Fund balance, beginning of year 2,584,926 2,584,926 - Fund balance, end of year 2,744,064 $ 2,911,309 167,245

CITY OF BELL GARDENS
Low and Moderate Housing Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2025
108
���������������
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Intergovernmental 726,451 $ 710,896 (15,555) Use of money and property 2,000 36,030 34,030 Total revenues 728,451 746,926 18,475
Expenditures:

Capital outlay 1,229,591 365,290 864,301
Total expenditures 1,229,591 365,290 864,301 Net change in fund balances (501,140) 381,636 882,776 Fund balance, beginning of year 1,368,609 1,368,609 - Fund balance, end of year 867,469 $ 1,750,245 882,776

CITY OF BELL GARDENS
Measure M Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2025
109
���������������
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Intergovernmental 880,000 $ 476,110 (403,890) Total revenues 880,000 476,110 (403,890) Expenditures:

Current:

Community development 1,000,000 23,560 976,440 Total expenditures 1,000,000 23,560 976,440 Net change in fund balances (120,000) 452,550 572,550 Fund balance (deficit), beginning of year (265,479) (265,479) - Fund balance (deficit), end of year (385,479) $ 187,071 572,550

CITY OF BELL GARDENS
CalHome Grant Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2025
110
���������������
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Intergovernmental 70,000 $ 120,499 50,499 Total revenues 70,000 120,499 50,499
Expenditures:

Capital outlay 5,000 57,950 (52,950) Total expenditures 5,000 57,950 (52,950) Net change in fund balances 65,000 62,549 (2,451) Fund balance (deficit), beginning of year (343) (343) - Fund balance, end of year 64,657 $ 62,206 (2,451)

CITY OF BELL GARDENS
Office of Traffic Safety Grant Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2025
111
���������������
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Intergovernmental - $ 317,282 317,282
Total revenues - 317,282 317,282
Expenditures:

Public works 60,000 76,676 (16,676) Capital outlay 214,138 - 214,138
Total expenditures 274,138 76,676 197,462 Net change in fund balances (274,138) 240,606 514,744 Fund balance (deficit), beginning of year (672,612) (672,612) - Fund balance (deficit), end of year (946,750) $ (432,006) 514,744

CITY OF BELL GARDENS
Measure W Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2025
112
���������������
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Intergovernmental - $ 34,790 34,790 Use of money and property - 28 28 Total revenues - 34,818 34,818 Expenditures:

Capital outlay - 32,460 (32,460) Total expenditures - 32,460 (32,460) Net change in fund balances - 2,358 2,358 Fund balance, beginning of year - - - Fund balance, end of year - $ 2,358 2,358

CITY OF BELL GARDENS
Transportation Development Act Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2025
113
���������������
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Intergovernmental 1,135,000 $ 3,242,159 2,107,159 Use of money and property - 22 22 Total revenues 1,135,000 3,242,181 2,107,181 Expenditures:

Capital outlay 38,677,052 8,893,693 29,783,359 Total expenditures 38,677,052 8,893,693 29,783,359 Net change in fund balances (37,542,052) (5,651,512) 31,890,540 Fund balance (deficit), beginning of year (1,171,038) (1,171,038) - Fund balance (deficit), end of year (38,713,090) $ (6,822,550) 31,890,540

CITY OF BELL GARDENS
Capital Improvement Projects Capital Projects Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2025
114
���������������

115
Statistical Section

This part of the City of Bell Gardens comprehensive annual financial report presents detailed information as a context for unders tanding what the information in the financial statements, note disclosures, and required s upplementary information says about the government’s overall financial health.

Contents

Financial Trends

These schedules contain trend informati on to help the reader understand how the government’s financial performance and well-being have changed over time.

Revenue Capacity

These schedules contain information to help the reader asses the government’s most significant local revenue source, the property tax.

Debt Capacity

These schedules present information to help the reader assess the affordability of the government’s current levels of outstanding debt and the gover nment’s ability to issue additional debt in the future.

Demographic and Economic Information

These schedules offer demographic and economic indicators to help the reader understand the environment with in which the government’s financial activities take place.

Operating Information

These schedules contain service and infrastruc ture data to help the reader understand how the information in the governm ent’s financial report relates to the services that the government provides and the activities it performs.

Sources: Unless otherwise noted, the information in these schedul es is derived from the comprehensive annual financial reports for the relevant year.

���������������
City of Bell Gardens
Net Position by Component,
Last Ten Fiscal Years
(accrual basis of accounting)
2016
2017 2018 2019 2020 2021 2022 2023 2024 2025
Governmental activities
Net investment in capital assets 96,995,245$ 97,101,421 $ 102,917,119 $ 96,341,128 $ 94,319,104 $ 94,260,557 $ 94,089,571 $ 94,478,816 $ 99,921,516 $ 114,315,498 $ Restricted 6,485,391 14,654,518 11,470,333 13,508,005 14,869,823 15,278,715 16,416,369 20,544,505 21,330,906 14,840,002 Unrestricted 8,141,746 2,531,794 (35,969,103) (35,706,062) (50,305,957) (48,223,688) (49,092,596) (39,954,897) (39,681,822) (48,570,327) Total governmental activities
net position 111,622,382
114,287,733 78,418,349 74,143,071 58,882,970 61,315,584 61,413,344 75,068,424 81,570,600 80,585,173 Business-type activities
Net investment in capital assets 4,382,797 4,475,003 4,614,646 4,731,850 4,864,055 5,011,259 5,173,466 5,350,672 5,542,878 5,759,923 Restricted 398,751 397,976 407,014 398,840 399,479 399,339 398,444 398,447 398,447 - Unrestricted (1,324,084) (1,736,560) (2,458,157) (3,177,331) (4,540,898) (5,398,397) (6,314,774) (7,713,360) (7,877,128) (6,634,465) Total business-type activities
net position 3,457,464
3,136,419 2,563,503 1,953,359 722,636 12,201 (742,864) (1,964,241) (1,935,803) (874,542) Primary government
Net investment in capital assets 101,378,042 101,576,424 107,531,765 101,072,978 99,183,159 99,271,816 99,263,037 99,829,488 105,464,394 120,075,421 Restricted 6,884,142 15,052,494 11,877,347 13,906,845 15,269,302 15,678,054 16,814,813 20,942,952 21,729,353 14,840,002 Unrestricted 6,817,662 795,234 (38,427,260) (38,883,393) (54,846,855) (53,622,085) (55,407,370) (47,668,257) (47,558,950) (55,204,792) Total primary government
net position 115,079,846 $
117,424,152 $ 80,981,852 $ 76,096,430 $ 59,605,606 $ 61,327,785 $ 60,670,480 $ 73,104,183 $ 79,634,797 $ 79,710,631 $ Fiscal Year
116
���������������
City of Bell Gardens
Changes in Net Position, Last Ten Fiscal Years
(accrual basis of accounting)
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Expenses
Governmental activities:

General government 7,475,621$ 9,428,611 $ 8,712,219 $ 9,579,450 $ 12,322,003 $ 9,494,894 $ 11,420,398 $ 8,911,022 $ 12,126,324 $ 12,445,132 $ Public safety 13,809,907 13,805,735 19,969,281 20,099,425 24,409,260 16,262,137 21,822,242 16,577,971 21,259,242 20,643,808 Public works 1,011,500 975,513 1,119,201 1,054,777 1,114,821 1,433,333 17,088,078 18,796,667 16,005,666 31,776,059 Community developmen
t 2,715,948 2,907,759 2,947,132 2,976,205 3,011,198 2,720,633 1,888,084 1,337,907 1,856,230 2,858,889 Parks and recreation 9,628,821 11,248,611 12,665,811 12,367,768 13,245,178 12,654,001 3,809,612 4,385,797 5,627,583 5,895,367 Interest and fiscal charges 372,171 330,085 263,511 222,679 160,317 224,813 309,418 12,822 292,808 233,062 Total governmental activities expenses 35,013,968 38,696,314 45,677,155 46,300,304 54,262,777 42,789,811 56,337,832 50,022,186 57,167,853 73,852,317 Business-type activities:

Water 1,465,697 1,260,039 1,246,971 1,480,401 2,283,601 1,641,054 1,973,561 2,520,634 2,487,621 2,377,250 Golf Course 319,165 257,431 216,378 293,272 230,571 204,753 197,572 243,472 275,776 277,579 Total business-type activities expenses 1,784,862 1,517,470 1,463,349 1,773,673 2,514,172 1,845,807 2,171,133 2,764,106 2,763,397 2,654,829 Total primary government expenses 36,798,830$ 40,213,784 $ 47,140,504 $ 48,073,977 $ 56,776,949 $ 44,635,618 $ 58,508,965 $ 52,786,292 $ 59,931,250 $ 76,507,146 $ Program Revenues
Governmental activities:

Charges for services:

General government 338,249$ 342,463 $ 323,653 $ 331,190 $ 286,337 $ 162,745 $ 397,988 $ 291,666 $ 344,881 $ 330,925 $ Public safety 634,835 1,356,767 571,834 841,816 760,878 650,065 768,053 608,178 650,239 1,654,115 Community developmen
t 255,812 280,090 278,614 286,460 268,136 267,283 273,433 272,017 815,781 1,076,257 Parks and recreation 165,014 164,346 98,339 452,631 275,756 14,879 113,856 359,011 528,943 6,617,549 Public works 348,916 347,616 394,728 352,032 321,524 446,415 431,319 394,697 649,381 582,531 Operating contributions and grant
s 3,642,395 4,361,504 4,256,834 5,268,930 4,613,116 13,102,459 12,784,303 7,700,886 7,452,160 10,917,834 Capital contributions and grants 623,406 1,023,124 2,058,437 1,543,927 2,129,774 3,857,745 6,263,274 9,588,188 7,630,856 8,634,635 Total governmental activities
program revenues 6,008,627
7,875,910 7,982,439 9,076,986 8,655,521 18,501,591 21,032,226 19,214,643 18,072,241 29,813,846 Business-type activities:

Charges for services:

Water 1,542,145 1,095,560 1,167,953 1,216,817 1,198,474 1,061,040 1,363,168 1,444,768 2,660,523 3,585,357 Golf Course 177,563
146,113 96,175 97,598 90,893 219,842 189,949 197,318 185,900 120,076 Total business-type activities
program revenues 1,719,708
1,241,673 1,264,128 1,314,415 1,289,367 1,280,882 1,553,117 1,642,086 2,846,423 3,705,433 Total primary government
program revenues 7,728,335 $
9,117,583 $ 9,246,567 $ 10,391,401 $ 9,944,888 $ 19,782,473 $ 22,585,343 $ 20,856,729 $ 20,918,664 $ 33,519,279 $ Fiscal Year
117
���������������
City of Bell Gardens
Changes in Net Position, Last Ten Fiscal Years
(accrual basis of accounting)
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Net (Expense)/Revenue
Governmental activities (29,005,341 )$ (30,820,404 )$ (37,694,716 )$ (37,223,318 )$ (45,607,256 )$ (24,288,220 )$ (35,305,606 )$ (30,807,543 )$ (39,095,612 )$ (44,038,471 )$ Business-type activities (65,154) (275,797) (199,221) (459,258) (1,224,805) (564,925) (618,016) (1,122,020) 83,026 1,050,604 Total primary government
net expense (29,070,495 )$ (31,096,201 )$ (37,893,937 )$ (37,682,576 )$ (46,832,061 )$ (24,853,145 )$ (35,923,622 )$ (31,929,563 )$ (39,012,586 )$ (42,987,867 )$ General Revenues and Other
Changes in Net Position
Governmental activities:

Taxes
Sales taxes 2,972,041 2,906,014 2,978,666 3,293,906 2,902,461 3,923,189 7,288,301 7,437,256 7,479,267 7,439,109 Property taxes 1,313,441 1,360,575 1,338,926 1,235,171 1,521,691 1,554,677 1,636,340 1,850,144 1,889,289 2,010,438 Other taxes 20,797,686 22,961,050 21,986,790 23,717,627 21,040,023 16,824,148 24,954,227 30,295,414 30,112,637 27,950,531 Use of money and propert
y 3,815,632 3,565,789 4,526,786 4,399,595 4,664,367 4,139,105 3,584,238 4,393,211 5,415,736 4,966,421 Others 384,225 3,497,000 509,076 157,817 218,613 279,715 482,682 285,869 251,214 686,545 Total governmental activities 29,283,025 34,290,428 31,340,244 32,804,116 30,347,155 26,720,834 37,945,788 44,261,894 45,148,143 43,053,044 Business-type activities:

Investment earnings 3,562 2,819 12,583 1,281 641 24 50 42 47 27 Miscellaneous 34,788 (48,067) 149,927 (8,243) (6,559) (145,534) (137,099) (99,399) (54,635) 10,630 Total business-type activities 38,350 (45,248) 162,510 (6,962) (5,918) (145,510) (137,049) (99,357) (54,588) 10,657 Total primary government 29,321,375$ 34,245,180 $ 31,502,754 $ 32,797,154 $ 30,341,237 $ 26,575,324 $ 37,808,739 $ 44,162,537 $ 45,093,555 $ 43,063,701 $ Change in Net Position
Governmental activities 277,684 $ 3,470,024$ (6,354,472) $ (4,419,202) $ (15,260,101 )$ 2,432,614 $ 2,640,182 $ 13,454,351 $ 6,052,531 $ (985,427) $ Business-type activities (26,804) (321,045) (36,711) (466,220) (1,230,723) (710,435) (755,065) (1,221,377) 28,438 1,061,261 Total primary government 250,880$ 3,148,979$ (6,391,183) $ (4,885,422) $ (16,490,824 )$ 1,722,179 $ 1,885,117 $ 12,232,974 $ 6,080,969 $ 75,834 $ Fiscal Year
118
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City of Bell Gardens
Program Revenues by Function/Program,
Last Ten Fiscal Years
(accrual basis of accounting)
2016
2017 2018 2019 2020 2021 2022 2023 2024 2025
Function/Program
Governmental activities:

General government 452,527 $ 412,444 $ 323,653 $ 331,190 $ 339,202 $ 6,018,504 $ 5,714,898 $ 370,224 $ 409,820 $ 375,049 $ Public safety 1,019,638 1,693,762 820,587 1,390,056 1,235,120 1,417,073 1,311,617 1,279,158 985,966 2,093,049 Public works 338,110 349,086 318,345 449,004 428,992 10,596,003 11,583,669 16,199,750 14,338,231 15,136,982 Community development 165,014 164,346 98,339 452,631 357,881 455,132 2,308,186 994,329 1,791,452 5,539,587 Parks and recreation 4,033,338 5,256,272 6,421,515 6,454,105 6,294,326 14,879 113,856 371,182 546,772 6,669,179 Subtotal governmental activities 6,008,627 7,875,910 7,982,439 9,076,986 8,655,521 18,501,591 21,032,226 19,214,643 18,072,241 29,813,846 Business-type activities:

Water 1,542,145 1,095,560 1,167,953 1,216,817 1,198,474 1,061,040 1,363,168 1,444,768 2,660,523 3,585,357 Golf Course 177,563 146,113 96,175 97,598 90,893 219,842 189,949 197,318 185,900 120,075 Subtotal business-type activities 1,719,708 1,241,673 1,264,128 1,314,415 1,289,367 1,280,882 1,553,117 1,642,086 2,846,423 3,705,432 Total primary government 7,728,335$ 9,117,583 $ 9,246,567 $ 10,391,401 $ 9,944,888 $ 19,782,473 $ 22,585,343 $ 20,856,729 $ 20,918,664 $ 33,519,278 $ Fiscal Year
119
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City of Bell Gardens
Fund Balances, Governmental Funds,
Last Ten Fiscal Years
(modified accrual basis of accounting)
2016
2017 2018 2019 2020 2021 2022 2023 2024 2025
General Fund
Nonspendable 13,649,022 $ 13,601,162 $ 2,148,992 $ 2,661,903 $ 3,613,735 $ 4,410,043 $ 5,283,742 $ 6,798,849 $ 7,059,098 $ 5,745,452 $ R e s t r i c t e d ------ - - - - Committed 2,500,000 2,700,000 2,900,000 - - - - - - - Assigned 12,574,042 16,937,770 12,907,322 17,152,208 13,786,955 18,068,028 25,059,763 28,609,899 30,849,725 19,685,048 Unassigned - - - - - - - - 72,000 - Total general fund 28,723,064 $ 33,238,932 $ 17,956,314 $ 19,814,111 $ 17,400,690 $ 22,478,071 $ 30,343,505 $ 35,408,748 $ 37,980,823 $ 25,430,500 $ All Other Governmental Funds
Nonspendable 3,387 $ - $ 5,537$ - $ 19,740$ - $ - $ - $ - $ - $ Restricted
Housing 775,919 997,199 536,826 651,886 772,851 1,067,422 2,090,777 2,287,612 2,584,926 2,911,309 Comm Development Proj - - - - - - - Recreation and Comm Svcs 730,810 730,810 120,884 282,608 202,075 85,972 17,155 134,192 359,608 Public Works - - - - - - - - - - Public Safety 356,541 1,055,351 918,275 923,954 900,976 914,720 963,429 939,896 1,186,199 2,137,766 Transportation 974,519 1,851,822 1,827,769 2,222,774 2,875,094 3,701,140 4,732,274 6,245,511 7,701,171 8,313,604 Environmental 327,303 385,104 390,510 332,956 210,762 146,018 146,358 586,458 919,596 1,477,323 Capital Improvement Projects 3,554,948 3,294,209 - - - - - - - - Debt Service - - - - - - - - - - Commited
Post Emploument Benefits - - - - - - - - - - Assigned 150,751 150,752 150,632 146,325 236,648 146,326 144,490 144,490 144,490 144,490 Unassigned (170,854) (87,603) (502,682) (213,984) (97,646) (339,835) (1,492,523) (1,361,299) (2,520,605) (12,556,404) Total all other governmental funds 6,703,324 8,377,644 3,447,751 4,346,519 5,120,500 5,721,763 6,601,960 8,976,860 10,375,385 2,428,088 Fiscal Year
120
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City of Bell Gardens
Changes in Fund Balances, Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
2016
2017 2018 2019 2020 2021 2022 2023 2024 2025
Revenues
22,415,867$ 24,300,284 $ 23,165,933 $ 24,990,387 $ 21,822,682 $ 18,342,783 $ 30,156,398 $ 35,881,469 $ 35,393,344 $ 33,023,322 $ Licenses and permits 4,020,146 3,061,686 4,066,421 5,415,634 5,187,109 461,485 581,062 438,830 697,538 621,760 Fines and forfeitures 582,265 4,200,624 4,374,440 4,832,065 556,294 500,420 511,199 515,120 1,057,929 2,381,400 Use of money and property 4,193,622 649,604 569,371 619,791 5,161,940 4,669,964 5,514,703 5,188,643 6,554,595 6,527,856 Intergovermental 2,803,809 4,445,859 4,670,113 4,931,407 4,224,076 19,564,996 20,722,458 17,415,883 15,882,161 19,774,511 Charges for services 677,357 1,295,306 510,712 743,679 454,514 214,062 458,438 701,728 848,414 894,971 Other revenues 702,143 4,339,168 1,249,951 971,653 1,043,146 1,746,609 1,390,716 1,858,018 2,137,205 2,215,508 Total revenues 35,395,209 42,292,531 38,606,941 42,504,616 38,449,761 45,500,319 59,334,974 61,999,691 62,571,186 65,439,328 Expenditures
Current:

General government 5,715,862 5,733,380 6,303,209 5,968,070 6,766,846 6,769,631 7,456,973 8,811,778 9,470,509 10,477,133 Public safety 13,809,907 14,902,518 15,760,348 16,058,371 16,462,100 14,927,090 16,654,426 18,439,227 18,153,433 19,020,906 Public works 8,465,041 9,450,700 9,791,978 10,067,951 9,967,562 9,918,361 11,041,434 12,062,093 13,578,591 14,063,218 Community development 1,011,500 975,513 1,119,201 1,054,777 1,114,821 1,433,333 1,888,084 1,337,907 1,856,230 2,858,889 Parks and recreation 2,715,948 2,907,759 2,947,132 2,976,205 3,011,198 2,720,633 3,809,612 4,385,797 5,627,583 5,895,367 Capital outlay 1,323,911 754,104 5,513,706 1,694,180 203,460 5,999,438 9,270,908 9,215,636 9,365,199 33,000,400 Debt service
Interest 400,370 329,879 300,118 260,173 185,044 249,556 294,211 283,507 273,821 351,501 Principal retiremen
t 647,953 689,876 709,901 748,132 241,917 188,602 310,794 323,002 329,855 258,904 Bond issuance costs - - - - - - - - - - Total expenditures 34,090,492 35,743,729 42,445,593 38,827,859 37,952,948 42,206,644 50,726,442 54,858,947 58,655,221 85,926,318 Excess of revenues
over (under)
expenditures 1,304,717 6,548,802 (3,838,652) 3,676,757 496,813 3,293,675 8,608,532 7,140,744 3,915,965 (20,486,990) Fiscal Yea
r
Taxes and assessments
121
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City of Bell Gardens
Changes in Fund Balances, Governmental Funds (continued) Last Ten Fiscal Years
(modified accrual basis of accounting)
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Other Financing
Sources (Uses)
Bonds issued - - - - - - - - - Premium on bonds issued - - - - - - - - - Payments to escrow agent - - - - - - - - - Other debts issued - - - - - - - - - - Transfers in 1,148,793 2,112,928 2,807,125 1,035,236 1,124,510 1,423,144 1,611,766 2,349,918 3,138,353 3,983,633 Trnsfers out (1,183,581) (2,064,861) (2,957,052) (1,026,993) (1,117,951) (1,277,610) (1,474,667) (2,250,519) (3,083,718) (3,994,263) Proceeds from Cap Lease - - - - - 2,239,435 - - - - Total other financing
sources (uses) (34,788)
48,067 (149,927) 8,243 6,559 2,384,969 137,099 99,399 54,635 (10,630) Net change in
fund balances 1,269,929 $ 6,596,869 $ (3,988,579) $ 3,685,000 $ 503,372 $ 5,678,644$ 8,745,631 $ 7,240,143 $ 3,970,600 $ (20,497,620)$ Debt service as a
percentage of noncapital
expenditures 3.20% 2.91% 2.73% 2.72% 1.13% 1.21% 1.46% 1.33% 1.22% 1.15% 122
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City of Bell Gardens
Tax Revenues by Source, Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Property
Year Property Sales & Use Occupancy Franchise Transfer Other Total 2016 5,302,713 2,724,441 534,412 634,387 37,364 18,630,606 27,863,923 2017 5,525,193 2,906,014 742,345 704,476 43,383 24,112,701 34,034,112 2018 5,623,586 2,978,666 737,207 737,113 95,964 20,541,169 30,713,705 2019 5,781,864 3,293,906 751,886 790,764 42,307 21,837,310 32,498,037 2020 6,497,085 2,902,461 595,441 855,197 40,797 18,560,708 29,451,689 2021 6,778,246 3,923,189 410,282 849,511 51,247 23,453,751 35,466,226 2022 6,958,910 7,288,301 638,634 1,004,683 106,737 27,174,454 43,171,719 2023 7,605,583 7,437,256 691,420 1,028,111 36,536 28,167,275 44,966,180 2024 7,945,833 7,479,267 641,361 1,052,057 24,971 28,726,021 45,869,510 2025 8,309,294 7,439,109 651,015 1,082,901 51,950 25,961,383 43,495,652 Change

56.7% 173.1% 21.8% 70.7% 39.0% 39.3% 56.1%2016-2025
123
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Category 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 Residential 1,058,053,985 1,102,144,068 1,139,890,984 1,197,855,480 1,257,073,826 1,318,585,961 1,363,852,114 1,465,930,917 1,521,632,739 1,579,323,935 Commercial 222,375,357 237,203,037 243,894,019 251,757,343 261,442,504 312,214,946 317,434,370 327,315,359 344,207,609 356,680,882 Industrial 154,989,143 160,863,704 167,771,117 179,966,251 193,776,781 203,185,886 208,548,241 235,689,222 241,266,686 245,502,002 Institutional 13,705,659 13,188,515 18,004,590 22,423,624 22,872,085 33,061,851 34,241,546 35,878,896 35,685,697 35,437,676 Miscellaneous 112,377 114,090 116,371 118,698 121,071 123,492 124,771 127,332 161,054 163,649 Recreational 37,295,391 37,811,716 38,567,946 39,339,302 72,025,997 73,466,514 74,227,623 75,712,172 77,226,411 78,770,935 Vacant 8,901,266 9,960,393 10,432,154 10,231,843 11,163,598 12,874,748 17,875,676 19,645,131 21,834,693 21,708,430 SBE Nonunitary 460,210 460,210 460,210 460,210 122,570 122,570 - - - - Cross Reference 21,669,930 22,850,527 32,464,748 33,764,990 35,492,843 35,219,544 37,280,475 40,939,516 49,808,011 51,261,969 Unsecured 67,265,481 70,566,907 71,058,613 70,031,052 72,695,502 74,503,012 71,709,674 73,223,062 65,277,509 72,409,685 Exempt [10,635,556] [10,645,380] [10,645,380] [10,463,434] [10,463,434] [10,463,434] [10,463,434] [10,463,434] [10,463,434] [10,250,503] TOTALS 1,584,828,799 1,655,163,167 1,722,660,752 1,805,948,793 1,926,786,777 2,063,358,524 2,125,294,490 2,274,461,607 2,357,100,409 2,441,259,163 Total Direct Rate 0.08200 0.08239 0.08223 0.08319 0.08360 0.08401 0.08422 0.08460 0.08503 0.08525 Notes:

Exempt values are not included in Total.

In 1978 the voters of the State of California passed Proposition 13 which limited taxes to a total maximum rate of 1%, based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum of 2%). With few exceptions, property is only reassessed as a result of new construction activity or at the time it is sold to a new owner. At that point, the property is reassessed based upon the added value of the construction or at the purchase price (market value) or economic value of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.

The City of Bell Gardens
Assessed Value of Taxable Property
Last Ten Fiscal Years
Data Source: Los Angeles County Assessor 2015/16 - 2024/25 Combined Tax Rolls This report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of HdL , Coren & Cone 124
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City of Bell Gardens
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
(1) (2) (4)
Fiscal
Year
City's Share
of 1% Levy
per Prop 13
Prop 13
District Tax
Less City
Share of 1% School District Community College
Metropolitan
Water District
Total Direct and
Overlapping Tax
Rates
Total Direct
Rate
2016 0.09197 0.90803 0.33152 0.08404 0.00350 1.41906 0.08200 2017 0.09197 0.90803 0.39288 0.08294 0.00350 1.47932 0.08239 2018 0.09197 0.90803 0.36271 0.08969 0.00350 1.45590 0.08223 2019 0.09197 0.90803 0.36357 0.09067 0.00350 1.45774 0.08319 2020 0.09197 0.90803 0.31566 0.07166 0.00350 1.39082 0.08360 2021 0.09197 0.90803 0.32470 0.08364 0.00350 1.41184 0.08401 2022 0.09197 0.90803 0.29858 0.08627 0.00350 1.38835 0.08422 2023 0.09197 0.90803 0.33983 0.06849 0.00350 1.41182 0.08460 2024 0.09197 0.90803 0.36880 0.10254 0.00350 1.47484 0.08503 2025 0.09197 0.90803 0.34523 0.11625 0.00700 1.46848 0.08525 Notes:
(2) Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all property owners.
(3) City's Share of 1% Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the City. The ERAF portion of the City's Levy has been subtracted where known. The ERAF portion of the City's levy has been subtracted where known. revenues derived from aircraft. Beginning in 2013/14 the Total Direct Rate no longer includes revenue generated from the former redevelopment tax rate areas. Challenges to recognized enforceable obligations are assumed to have been resolved during 2012/13. For the purposes of this report, residual revenue is assumed to be distributed to the City/Agency in the same proportions as general fund revenue.

Data Source: Los Angeles County Assessor 2015/16- 2024/25 Tax Rate Table This report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of HdL, Coren & Cone Prepared On 8/22/2025 By MV
Overlapping Rates (3)
(1) In 1978, California voters passed Proposition 13 which set the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the values for the payment of any voter approved bonds.
(4) Redevelopment Rate is based on the largest RDA tax rate area and only includes rate(s) from indebtedness adopted prior to 1989 per California State 125
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City of Bell Gardens
Principal Property Tax Payers
Current Year and Ten Years Ago
Percentage Percentage
of Total Cit
y of Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Value Rank Value
MONUMENT PROPERTIES BELL GARDENS LLC 117,344,803$ 1 4.81% BICYCLE CASINO 64,464,846$ 1 4.07%
PRIME CRDF BELL GARDENS LLC LESSEE 76,189,905 2 3.12% 38,299,921 2 2.42% CDC OF CITY BELL GARDENS 19,979,869 3 1.26%
PRIME CRDF LOS JARDINES LLC 31,829,064 3 1.30% PRIME FRIT EL PORTAL LLC 24,318,310 4 1.00% 19,758,934 4 1.25% WESTERN B WEST CALIFORNIA LLC 16,576,374 5 1.05%
WEI-CHUAN INTERNATIONAL INC 21,523,281 5 0.88% 13,547,285 6 0.85% VILLA DEL RIO INC 17,387,918 6 0.71%
BRE JUPITER B WEST CALIFORNIA OWNER LP 14,052,796 7 0.58% LIBERTY UTILITIES CORPORATION 11,609,832 8 0.48% GIRAFFE PROPERTIES LLC 9,037,676 7 0.57%
BELL GARDENS HOSPITALITY LLC 7,774,337 8 0.49%
JAMES P AND JUDY A BERG 7,453,059 9 0.47%
SUVA MONTALANE INVESTMENTS LLC 11,006,885 9 0.45% PRIME FRIT LOS JARDINES LLC 10,498,999 10 0.43% CASTER GARFIELD STORAGE LP 6,852,683 10 0.43%
Total 335,761,793 $ 13.75% 203,744,984 $ 12.86% Source: HdL Coren & Cone, Los Angeles County Assessor 2024/2025 and 2015/16 Combined Tax Rolls and the SBE Non Unitary Tax Roll 2024/2025 2015/2016
126
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City of Bell Gardens
Property Tax Levies and Collections
Last Ten Fiscal Years
Fiscal
Year Taxes Levied Collection in
Ended for the Percentage Subsequent Pecent
June 30, Fiscal Year Amount of Lev y Years Amount of Levy 2016 1,458,844 1,313,441 90.03% - 1,313,441 90.03% 2017 1,523,617 1,360,576 89.30% - 1,360,576 89.30% 2018 1,585,780 1,338,925 84.43% - 1,338,925 84.43% 2019 1,662,373 1,235,171 74.30% - 1,235,171 74.30% 2020 1,773,585 1,521,691 85.80% - 1,521,691 85.80% 2021 1,899,332 1,554,677 81.85% - 1,554,677 81.85% 2022 1,956,312 1,636,340 83.64% - 1,636,340 83.64% 2023 2,095,014 1,850,144 88.31% - 1,850,144 88.31% 2024 2,171,063 1,889,289 87.02% 1,889,289 87.02% 2025 2,248,570 2,010,438 89.41% 2,010,438 89.41% Sources: Finance Department records and Los Angeles County Assessors Office Collected within the
Fiscal Year of the Levy Collection to Date
127
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City of Bell Gardens
Taxable Sales by Category
Last Ten Calendar Years
(in thousands of dollars)
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Apparel stores 34,069 $ 38,708 $ 37,466 $ 37,640 $ 37,485 $ 27,855 $ 40,580 $ 39,418 $ 39,944 $ 42,161 $ General merchandise 2,511 2,415 2,479 2,437 2,442 2,787 2,972 3,460 3,041 3,014 Food stores 21,801 16,976 15,080 15,367 15,542 17,989 17,188 16,577 17,121 20,359 Eating and drinking establishments 44,146 46,616 51,129 52,102 54,156 48,239 61,830 63,606 64,160 68,380 Building materials and farm tools 6,542 5,831 6,563 6,413 7,611 8,515 8,980 9,769 12,873 12,518 Auto dealers and supplies 8,297 8,667 7,873 8,049 7,899 7,849 8,674 8,693 12,847 11,259 Service stations 41,218 35,445 41,616 51,153 47,544 38,708 53,170 68,831 59,582 56,916 Other retail stores 40,490 44,618 42,748 39,421 39,346 41,679 47,321 45,820 45,464 43,402 All other outlets 81,336
86,969 90,209 93,245 108,261 107,957 119,053 130,357 130,781 126,372 Total 280,410 $ 286,245 $ 295,162 $ 305,827 $ 320,287 $ 301,577 $ 359,768 $ 386,532 $ 385,812 $ 384,379 $ Source: The HdL Companies
128
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City of Bell Gardens
Principal Sales Tax Remitters
Current Year and Ten Years Ago
Tax Remitter Tax Remitter
76 Service Stations 76 Service Stations
Alfredos Mexican Food Quick-Service Restaurants Andrea Shoes Shoe Stores Applebee's Casual Dining AutoZone Automotive Supply Stores AutoZone Automotive Supply Stores Bell Gardens Self Serve Car Wash Service Stations Bell Gardens Self Serve Car Wash Service Stations Bicycle Casino Leisure/Entertainment Bobs Discount Furniture Home Furnishings Big 5 Sporting Goods Sporting Goods/Bike Stores Carbon Supply Drugs/Chemicals Casa Leaders Home Furnishings Casa Leaders Furniture Home Furnishings El Pescador Casual Dining Chevron Service Stations El Pollo Loco Quick-Service Restaurants El Pollo Loco Quick-Service Restaurants Eurocraft Architectural Metal Heavy Industrial Food 4 Less Grocery Stores Factory 2U Family Apparel
Hertz Corporation Transportation/Rentals Food 4 Less Grocery Stores IHOP Casual Dining IHOP Casual Dining
Marshalls Family Apparel Jack in the Box Quick-Service Restaurants McDonald's Quick-Service Restaurants Marshalls Family Apparel Mosier Building Materials McDonald's Quick-Service Restaurants O'Reilly Auto Parts Automotive Supply Stores Mosier Building Materials Parkhouse Tire Service Trailers/Auto Parts Parkhouse Tire Service Trailers/Auto Parts Parkwest Bicycle Casino Leisure/Entertainment Petrolion Service Stations Petco Specialty Stores Rite Aid Drug Stores
Petrolion Service Stations Ross Family Apparel
Ross Family Apparel Super A Foods Grocery Stores
T Mobile Electronics/Appliance Stores Toys R Us Specialty Stores West Coast Accudyne Heavy Industrial USA Gasoline Service Stations Wilcox Machine Heavy Industrial Walmart Neighborhood Market Grocery Stores Percent of FY Total Paid by Top 25 Accounts 64.10% 64.21% 2025
Business Category
2015
Business Category
129
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City of Bell Gardens
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Tax Capital Certificates Water Total
Fiscal Allocation Revenue Notes Lease of Revenue Primar y Per Year Bonds Bonds Payable Payable Participation Bonds Government Capita 2016 - 6,301,045 1,662,056 - - 2,853,313 7,963,101 1.90% 257 2017 - 6,111,918 1,137,179 - - 2,592,926 7,249,097 1.71% 229 2018 - 5,927,791 587,278 - - 2,317,537 6,515,069 1.47% 207 2019 - 5,733,664 9,146 - - 2,032,150 5,742,810 1.24% 181 2020 - 5,529,539 4,102 - - 1,731,763 5,533,641 1.11% 173 2021 - 5,320,410 500 2,239,435 - 1,416,376 7,560,345 1.27% 195 2022 - 5,106,283 - 2,119,140 - 1,085,987 7,225,423 1.16% 188 2023 - 4,882,156 - 1,995,409 - 740,599 6,877,565 1.11% 179 2024 - 4,653,029 - 1,867,757 - 360,214 6,520,786 0.97% 170 2025 - 4,408,902 - 1,736,258 - - 6,145,160 0.85% 160 Notes: Details regarding the city's outstanding debt can be found in the notes to the financial statements.

Income
Business -
Governmental Activities type Activities
Percentage
of Personal
130
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City of Bell Gardens
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
General Percent
Fiscal Obligation of Assessed Per
Year Bonds Total Value (1) Capita (2)
2015 - - - - -
2016 - - - - -
2017 - - - - -
2018 - - - - -
2019 - - - - -
2020 - - - - -
2021 - - - - -
2022 - - - - -
2023 - - - - -
2024 - - - - -
Notes:

General bonded debt includes general obligation bonds and tax-backed bonds that are payable with governmental fund and enterprise fund resources.
(1)-Assessed value has been used because the actual value of taxable property is not readily availabl e
in the State of California.
(2)-The per capita ratios are calculated using the official demographic estimates as of January 1st of each calendar year.

General Bonded Debt Outstanding
Redevelopment
Bonds
131
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CITY OF BELL GARDENS
DIRECT & OVERLAPPING DEBT AS OF JUNE 30, 2025
2024-25 Assessed Valuation: $2,441,259,163
Total Debt City’s Share of
OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/2025 % Applicable (1) Debt 6/30/25 Metropolitan Water District $17,155,000 0.060% $10,293
Cerritos Community College District 510,110,300 0.066 336,673 Los Angeles Community College District 4,919,505,000 0.202 9,937,400 Downey Unified School District 352,660,294 0.250 881,651 Los Angeles Unified School District 11,745,405,000 0.007 822,178 Montebello Unified School District 228,369,179 10.100 23,065,287 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $35,053,482
DIRECT AND OVERLAPPING GENERAL FUND DEBT:

Los Angeles County General Fund Obligations $3,036,637,390 0.116% $3,522,499 Los Angeles County Superintendent of Schools Certificates of Participation 2,331,775 0.116 2,705 Los Angeles Unified School District Certificates of Participation 225,010,000 0.007 15,751 Montebello Unified School District Certificates of Participation 3,185,000 10.100 321,685 City of Bell Gardens Lease Revenue Bonds and Lease Obligation 5,756,060 100 5,756,060 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT 9,618,700 OVERLAPPING TAX INCREMENT DEBT (Successor Agency): $10,370,000 100.00% $10,370,000 DIRECT DEBT $5,756,060
OVERLAPPING DEBT $49,286,122
COMBINED TOTAL DEBT $55,042,182 (2)
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations.

Ratios to 2024-25 Assessed Valuation:

Total Overlapping Tax and Assessment Debt 1.44%
Total Direct Debt ($5,756,060) 0.24%
Combined Total Debt 2.25%
Ratios to Redevelopment Successor Agency Incremental Valuation ($659,280,640):

Total Overlapping Tax Increment Debt 1.57%
This report reflects debt which is being repaid through voter-approved property tax indebtedness. It excludes mortgage revenue, tax allocation bonds, interim financing obligations, non-bonded capital lease obligations, and certificates of participation, unless provided by the city.

Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the city. The percentage of overlapping debt applicable is estimated by using taxable assessed values. Applicable percentages were estimated by determining the portion of another governmental unit's taxable assessed value that is within the city's boundaries and dividing it by each unit's total taxable assessed value.

Data Source: California Municipal Statistics, Inc., Los Angeles County Assessor and Auditor Combined 2024/25 Lien Date Tax Rolls This report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of California Municipal Statistics, Inc. (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.
132
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City of Bell Gardens
Legal Debt Margin Information
Last Ten Fiscal Year
s
Legal Debt Margin Calculation for Fiscal Year 2025
Assessed value 2,441,259,163 $
Debt limit (15% of assessed value) 366,188,874
Debt applicable to limit:

General obligation bonds -
Less: Amount set aside for
repayment of general
obli
gation debt -
Total net debt applicable to limit -
Legal debt margin 366,188,874$
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Debt limit 237,724,320 $ 248,274,475 $ 258,399,113 $ 270,892,319 $ 289,018,017 $ 309,503,779 $ 318,794,174 $ 341,169,241 $ 353,565,061 $ 366,188,874 $ Total net debt applicable to limit - - - - - - - - - - Legal debt margin 237,724,320$ 248,274,47 5$ 258,399,11 3$ 270,892,31 9$ 289,018,01 7$ 309,503,77 9$ 318,794,17 4$ 341,169,241 $ 353,565,061 $ 366,188,87 4$ Total net debt applicable to the limit
as a percentage of debt limit 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Source: HDL
Note: Under state finance law, the city's outstanding general obligation debt should not exceed 15 percent of total assessed property value. The City has no bonded indebtedness.
133
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City of Bell Gardens
Pledged-Revenue Coverage
Last Ten Fiscal Years
Water Revenue Bonds
Utilit
y Less: Net
Fiscal Service Operating Available Debt Service
Year Charges Expenses Revenue Principal Interest Coverage 2016 1,545,560 1,315,860 229,700 250,000 135,593 0.60 2017 1,103,221 1,097,327 5,894 260,000 126,405 0.02 2018 1,167,877 966,277 201,600 285,000 113,683 0.51 2019 1,216,817 1,352,709 (135,892) 285,000 110,264 (0.34) 2020 1,198,473 2,171,346 (972,873) 300,000 85,911 (3.52) 2021 1,061,040 1,542,785 (481,745) 315,000 71,269 (2.25) 2022 1,363,168 2,095,961 (732,793) 330,000 55,975 (2.90) 2023 1,633,115 2,445,361 (812,246) 345,000 39,807 (3.11) 2024 2,196,455 2,273,441 (76,986) 360,000 22,750 (1.20) 2025 3,571,843 2,298,675 1,273,169 380,000 4,608 2.31 Notes: Details regarding the city's outstanding debt can be found in the notes to the financial statements. Operating expenses do not include bond interest, depreciation, or amortization expenses.
134
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City of Bell Gardens
Demographic and Economic Statistics
Last Ten Calendar Years
Personal Per
Income Capita
Calendar (thousands Personal Unemployment
Year Population of dollars) Income Rate
2015 42,952 489,495 11,396 7.8% 2016 42,824 499,815 11,671 6.1% 2017 43,051 494,144 11,478 5.6% 2018 42,972 520,032 12,101 4.7% 2019 42,449 537,963 12,673 4.4% 2020 42,233 560,614 13,274 13.2% 2021 38,861 594,003 15,285 9.8% 2022 38,447 620,309 16,134 5.1% 2023 38,381 675,156 17,590 5.2% 2024 38,471 718,937 18,687 6.2% Source: HDL
135
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City of Bell Gardens
Full-time-Equivalent City Government Employees by Function/Program Last Ten Fiscal Years
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Function/Program
General government
Mayor and City Council 1 1 1 1 1 1 1 1 1 1 City Manager's Office 4 4 4 4 3 3 3 3 3 3 City Clerk's Office 2 2 3 3 3 3 4 5 5 5 Finance 10 10 9 9 9 9 10 10 10 10 Community Development 10 9 9 9 10 10 11 11 13 16 Police
Sworn 51 51 51 51 48 48 57 57 44 44 Non-sworn 22 22 23 23 23 23 16 16 38 23 Public Works 27 27 28 28 28 28 28 28 30 30 Recreation & Community Services 11 12 12 12 11 11 15 15 15 16 Total 138 138 140 140 136 136 145 146 159 148 Source: City Budget
leave). Full-time-equivalent employment is calculated by dividing total labor hours by 2,080.

Notes: A full-time employee is scheduled to work 2,080 hours per year (including vacation and sick 136
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City of Bell Gardens
Principal Employers
Current Year and Nine Years Ago
Percent o
f Percent of
Number of Total Number o f Total
Employers Employees Employment Employees Employment
Park West Casino 1,260 9.71% 1,700 10.97%
Certified Network M.Co 202 1.30%
Briarcrest Nursing Center 250 1.93% 186 1.20% Del Rio Sanitaruim, Inc. 100 0.65%
Villa Del Rio, Inc. 173 1.33%
First Class Vending, Inc. 100 0.77% 150 0.97% Metal Surfaces Inc. 125 0.81%
Parkhouse Tire Inc. 100 0.65%
Sign Resource LLC 158 1.22%
Metal Surfaces International LLC 129 0.99% El Super #68 110 0.85%
Wei-Chuan U.S.A Inc. 100 0.77% 100 0.65% Valet Services 182 1.17%
Southern CA Braiding Co. 100 0.65%
Food 4 Less #307 94 0.72%
Marshalls #308 92 0.71%
Total 2,466 19.00% 2,945 19.00%
Source:

City Bell Gardens Community Development Department
California Employment Development Labor Market Information http://wwwlabormarketinfor.edd.ca.gov/cgi/dataanalysis/AreaSelection.asp?tableName=Labforce 2025 2016
137
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City of Bell Gardens
Operating Indicators by Function/Program
Last Ten Fiscal Years
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Function/Program
General government
Building permits issued 264 202 310 291 263 310 277 307 365 341 Police
Physical arrests 1,343 1,220 1,246 1,360 1,204 1,140 1,129 1,269 1,114 1,107 Parking violations 7,435 7,553 10,223 10,830 13,897 10,629 10,424 11,508 10,839 12,264 Traffic violations 2,164 2,506 1,990 2,093 1,817 1,324 1,620 1,247 1,481 1,415 Refuse collection
Refuse collected (tons per day) 29 29 30 32 34 44 41 40 41 60 Recyclables collected (tons per day) 20 20 21 24 22 17 16 14 14 39 Other public works
Street resurfacing (miles) - - 1.3 3.3 1.5 5.5 2.9 0.6 0.4 1.0 Potholes repaired 405 405 160 230 326 351 341 360 516 593 Parks and recreation
Athletic field permits issued 274 231 261 266 180 1 80 332 252 290 Community center admissions 455,368 482,690 448,901 430,945 287,298 14,365** 201,108 301,662 277,529 291,961 Transit
Total route miles * * * * * * * * * *
Passengers * * * * * * * * * *
Sources: Various city departments. * Information not available ** Due to COVID only 8 months of activity.
138
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City of Bell Gardens
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Function/Program
Police
Stations 1 1 1 1 1 1 1 1 1 1 Other public works
Streets (miles) 402 402 402 402 402 402 402 402 402 402 Highways (miles) 107 107 107 107 107 107 107 107 107 107 Streetlights 8,162 8,162 8,162 8,162 8,162 8,162 8,162 8,162 8,162 8162 Traffic signals 111 111 111 111 111 111 111 111 111 111 Parks and recreation
Acreage 64 64 64 64 64 64 64 64 64 64 Playgrounds 10 10 10 10 10 10 10 10 10 9 Baseball/softball diamonds 3 3 3 3 3 1 1 1 1 3 Wastewater
Sanitary sewers (miles) 484 484 484 484 484 484 484 484 484 484 Storm sewers (miles) 339 339 339 339 339 339 339 339 339 339 Treatment capacity (thousands of gallons) 4,200 4,200 4,200 4,000 4,000 4,000 4,000 4,000 4,000 4,000 Transit—Senior Citizen Bus 7 7 7 7 7 7 7 7 6 7 Sources: Various city departments.

Notes: No capital asset indicators are available for the general government function. 139
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City of Bell Gardens
Single Audit Report on Schedule of Expenditures of Federal Awards June 30, 2025

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CITY OF BELL GARDENS
Single Audit Report on Schedule of Expenditures of Federal Award Programs June 30, 2025

TABLE OF CONTENTS

Page

Report on Internal Control Over Financial Reporting
and on Compliance and Other Matters Based on an
Audit of Financial Statements Performed in
Accordance with Government Auditing Standards 1

Report on Compliance for Each Major
Program and on Internal Control Over Compliance
Required by the Uniform Guidance 3

Schedule of Expenditures of Federal Awards 6

Notes to Schedule of Expenditures of Federal Awards 7

Schedule of Findings and Questioned Costs 8

Summary Schedule of Prior Audit Findings 10

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438 Old Newport Blvd, Newport Beach, CA 92663
Phone (949) 346-2900 –www.gruberlopezinc.com

1 Honorable Mayor and City Council
City of Bell Gardens
Bell Gardens, California

INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER

FINANCIAL REPORTING AND ON COMPLIANCE AND

OTHER MATTERS BASED ON AN AUDIT OF

FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH

GOVERNMENT AUDITING STANDARDS

We have audited, in accordance with the auditing standards gene rally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the fin ancial statements
of the governmental activities, the business-type activities, e ach major fund, and the aggregate remaining fund information of City of Bell Gardens, California (City) as of and for the year ended June 30, 2025, and the related notes to the financia l statements, which collectively comprise City of Bell Gardens’ basic financial statements, and have issued our report thereon dated April 13, 2026.

Internal Control Over Financial Reporting

In planning and performing our audit of the financial statements, we considered City of Bell Gardens' internal control over financial reporting (internal co ntrol) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of City of Bell Gardens’ interna l control. Accordingly, we do n ot express an opinion on the effectiveness of City of Bell Gardens’ internal control.

Our consideration of internal control was for the limited purpo se described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. However, as de scribed in the accompanying schedule of findings and questioned costs, we identified certai n deficiencies in internal control that we consider to be a material weakness and significant deficiency.

A deficiency in internal control exists when the design or operation of a control does not allo w management or employees, in the normal course of performing the ir assigned functions, to prevent, or detect and correct, misstatements on a timely basis . A material weakness i s a deficiency, or a combination of d eficiencies, in internal contr ol, such that there is a reasonable possibility that a material misstatement of the entity’s financ ial statements will not be prevented, or detected and corrected on a timely basis. We consider the d eficiency described in the accompanying schedule of findings and questioned costs as item 2025-01 to be a material weakness.

A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. We consider the deficiency described in the ac companying schedule of findings and questioned costs as item 2025-01 to be a significant deficiency.

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2 Honorable Mayor and City Council
City of Bell Gardens
Page Two

Compliance and Other Matters

As part of obtaining reasonable assurance about whether City of Bell Gardens' financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreement s , n o n c o m p l i a n c e w i t h w h i c h could have a direct and material effect on the financial statem ents. However, providing an opinion on compliance with those provisions was not an objectiv e of our audit, and accordingly, we do not express such an opinion. The results of our tests dis closed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report

The purpose of this report is solely to describe the scope of o ur testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communicatio n is not suitable for any other purpose.

Gruber and Lopez, Inc.

Newport Beach, California
April 13, 2026

Gruber and Associates, Inc.
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438 Old Newport Blvd, Newport Beach, CA 92663
Phone (949) 346-2900 –www.gruberlopezinc.com

3 Honorable Mayor and City Council
City of Bell Gardens
Bell Gardens, California

INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM

AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM

GUIDANCE
Report on Compliance for Each Major Federal Program

Opinion on Each Major Federal Program
We have audited City of Bell Gardens CA’s compliance with the t ypes of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of City of Bell Gardens CA’s major federal progr ams for the year ended June 30, 2025.

City of Bell Gardens CA’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs.

In our opinion, City of Bell Gardens CA complied, in all materi al respects, with the types of compliance requirements referred to above tha t could have a direct and mat erial effect on each of its major federal programs for the year ended June 30, 2025.

Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditin g standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States and th e audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are fu rther described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.

We are required to be independent of City of Bell Gardens CA and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate t o provide a basis for our opinion on compliance for each major federal program. Our audit does not p rovide a legal determination of City of Bell Gardens CA’s compliance with the compliance requirements referred to above.

Responsibilities of Management for Compliance
Management is responsible for com pliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control o ver compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to City of Bell Gardens CA’s federal programs.

Auditor’s Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on City of Bell Gardens CA’s compliance based on our au dit. 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, Government Auditing Standards, and the Uniform Guidance will always detect mate rial noncompliance when it exis ts. The risk of not detecting material noncompliance resulting from fraud is higher than for that resu lting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. ���������������

4 Honorable Mayor and City Council
City of Bell Gardens
Page Two

Noncompliance with the complia nce requirements referred to above is considered material if there is a substantial likelihood that, indi vidually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about City of Bell Gardens CA’s compliance with the requirements of each major federal program as a whole.

In performing an audit in accord ance with generally accepted au diting standards, Government Auditing Standards, and the Uniform Guidance, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material noncompliance, whethe r due to fraud or error, and design and perform audit procedures responsive to those risks. Such pr ocedures include examining, on a test basis, evidence regarding City of Bell Gardens CA’s compliance with the compliance requirements referred to above and performing such other proced ures as we considered necessary in the circumstances.
 Obtain an understanding of City of Bell Gardens CA’s internal c ontrol over compliance relevant to the audit in order to design audit procedures that are appro priate in the circumstances and to test and report on internal control over compliance in accordan ce with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectivene ss of City of Bell Gardens CA’s internal control over compliance. Accordingly, no such opinion is expressed.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant defic iencies and material weaknesses in internal control over compliance that we identified during the audit.

Report on Internal Control over Compliance

A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance wit h a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance i s a deficiency, or a combination of deficiencies, in internal contr ol over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal p rogram that is less severe than a material weakness in internal control over compliance, yet important eno ugh to merit attention by those charged with governance.

Our consideration of internal control over compliance was for t he limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these l imitations, during our audit we did not identify any deficiencies in internal control over compliance t hat we consider to be material weaknesses, as defined above. However, material weaknesses or significant d eficiencies in internal control over compliance may exist that were not identified.

Our audit was not designed for the purpose of expressing an opi nion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. ���������������

5 Honorable Mayor and City Council
City of Bell Gardens
Page Three

Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of the governmental ac tivities, each major fund, and the aggregate remaining fund inform ation of City of Bell Gardens CA , as of and for the year ended June 30, 2025, and the related notes to th e financial statements, which collectively comprise City of Bell Gardens CA’s basic financial statements. We issued our report thereon d ated April 13, 2026, which contained unmodified opinions on those financial statements. Our audit wa s performed for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is pres ented for purposes of additional analysis as required by the Uniform Guidance and is not a required part of the basic financial statements. Such information is the responsibility o f management and was derived from and relates directly to the underlying accounting and other records used to prepare the bas ic financial statements. The information has been subjected to the auditing procedures applied in the au dit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financia l statements or to the basic financial statements themselves, and othe r additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the s chedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of Uniform Guidance. Accordingly, this report is not suitable for any other purpose.

Gruber and Lopez, Inc.

Newport Beach, California
April 13, 2026

Gruber and Associates, Inc.
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Program Federal Payments
Federal Grantor/ Assistance Identification Award To
Pass-through Grantor/Program Number Number Expenditures Subrecipients U.S. Department of Housing and Urban Development:

Passed through the Los Angeles County Development Agency:

Community Development Block Grants/ Entitlement Grants 14.218 B-21-UC-06-0505 1,471,076$ - Total U.S. Department of Housing and Urban Development 1,471,076 - U.S. Department of Justice:

Direct:

Bulletproof Vest Partnership Program 16.607 - 8,441 - Equitable Sharing Program - Asset Forfeiture 16.922 CA0190900 47,561 - Total U.S. Department of Justice 56,002 - U.S. Department of Transportation:

Passed through the State of California - Office of Traffic Safety:

State and Community Highway Safety Cluster 20.600 PT22147 57,950 - Total U.S. Department of Transportation 57,950 - U.S. Department of Treasury:

Passed through County of Los Angeles:

Covid-19-Corona Virus Relief Fund 21.019 CNTR SS 24CARPA 10 6,635 - Total U.S. Department of Treasury 6,635 - U.S. Department of Homeland Security:

Direct:

Emergency Food and Shelter Program 97.024 LRO 069500-561 4,105 - Total U.S. Department of Homeland Security 4,105 - Total Expenditures of Federal Awards 1,595,768$ - * Denotes major program.

CITY OF BELL GARDENS
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2025
See accompanying notes to the schedule of expenditures of federal awards. 6 ���������������

7 CITY OF BELL GARDENS

Notes to the Schedule of Expenditures of Federal Awards

June 30, 2025

(1) Summary of Significant Accounting Policies Applicable to th e Schedule of Expenditures of Federal Awards

The financial reporting entity, as defined by Governmental Acco unting Standard Board (GASB), consists of the primary government, which is the City of Bell Gardens, California (City), entities for which the primary government is financially accountable, an d other entities for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity’s financial statements to be misleading or incomplete.

The City Council acts as the governing body and is able to impose its will on the following entities by establishing financial accountability:

 Bell Gardens Financing Authority

(a) Scope of Presentation

The accompanying schedule presents only the expenditures incurr ed by the City of Bell Gardens (City) that are reimbursable under federal programs of federal agencies providing financial assistance. For purposes of this schedule, financial assistance includes both federal financial assistance received directly from a fede ral agency and expended, as well as federal funds received indirectly by City of Bell Garde ns’ from a non-federal agency and expended. Only the portion of program expenditures r eimbursable with such federal funds are reported in the accompanying schedule. Progra m expenses in excess of the maximum federal reimbursement authorized or the portion of program expenses that were funded with state, local or other non-federal funds are ex cluded from the accompanying schedule.

(b) Basis of Accounting

Funds received under the various grant programs have been recor ded within the general fund and special revenue funds of the City. The City utilizes the modified accrual basis of accounting for governmental funds. The accompanying schedule of expenditures of federal awards is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Office of Management and Budget Uniform Grant Guidance).

(c) De Minimus Indirect Cost Rate

The City elected to use the 10% de minimus indirect cost rate f or the year ended June 30, 2025. However, no indirect costs were charged to the major federal program.

(d) Subrecipients

There were no payments to subrecipients for the year ended June 30, 2025.

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8 CITY OF BELL GARDENS

Schedule of Findings and Questioned Costs

Year ended June 30, 2025

Summary of Auditors’ Results

A) Findings Related to the Financial Statements which are Requ ired to be Reported in Accordance with GAGAS

1. An unmodified report was issued by the auditors on the financial statements of the auditee.

2. We identified a certain deficiency in internal control, desc ribed as item 2025-01 below that we consider to be a significant deficiency and a material weakness.

2025-1 Statement on Auditing Standards (SAS) No. 122, AU-C 265

Criteria: Statement on Auditing Standards (SAS) No. 122, AU-C 265 Commun icating Internal Control Matters Identified in an Audit (formerly SAS No. 115) provides examples of conditions and events that may indicate the existence of risk o f material misstatement.

Paragraph .A11 of the standard requires that the auditor includ e in his or her report of deficiencies, such as material adjustments, detected by the audit process.

Condition: There were numerous adjustments for the year ended June 30, 20 25 that were discovered by us through the audit process. Such significant ad justments included the areas of cash and investments, loans receivable, fund balance, capita l a s s e t s a n d r e l a t e d depreciation, accounts payable, accrued liabilities, long-term debt, and unearned revenue.

Cause: Accounting records were not agreed to the general ledger before the audit took place.

Effect: Material misstatements can occur.

Questioned Costs: None

Recommendation: Client adjustments should be ref lected in the accounting recor ds prior to the start of the audit. Requested schedules should be reviewed and agreed to the general ledger before providing them to the auditors. Beginning fund ba lances should be reviewed and agreed to the prior year ending fund balance before the gen eral ledger is provided to the auditors. These recommendations will help in making audit fieldwork as efficient as possible and in order to avoid auditor adjustments.

Management’s Response:

Management concurs with the finding and will strive to reduce audit adjustments in the future.

3. The audit disclosed no noncompliance which is material to th e financial statements of the auditee.

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9 CITY OF BELL GARDENS

Schedule of Findings and Questioned Costs (continued)

Year ended June 30, 2025

(B) Findings and Questioned Costs for Federal Awards as Defined in 2 CFR 200.515(d)

4. There were no material weaknesses or significant deficiencies in internal control over compliance of federal major programs of the auditee.

5. An unmodified report was issued by the auditors on compliance for federal major programs.

6. The audit disclosed no audit findings of federal awards requ ired by the auditors to be reported under 2 CFR 200.515(d)

7. The major federal programs of the auditee were: (1) Assistan ce Listing #14.218 U.S.

Department of Housing and Urban Development – Community Develop ment Block Grants / Entitlement Grants.

8. The dollar threshold used to distinguish Type A and Type B p rograms was $750,000 under 2 CFR 200.518 (b) (1).

9. The auditee was not considered a low risk auditee as defined by 2 CFR 200.518 for the year ended June 30, 2025 for purposes of determining major programs.

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10 CITY OF BELL GARDENS

Summary Schedule of Prior Year Audit Findings

Year ended June 30, 2025

2024-1 Statement on Auditing Standards (SAS) No. 122, AU-C 265

Criteria: Statement on Auditing Standards (SAS) No. 122, AU-C 265 Commun icating Internal Control Matters Identified in an Audit (formerly SAS No. 115) provides examples of conditions and events that may indicate the existence of risk o f material misstatement.

Paragraph .A11 of the standard requires that the auditor includ e in his or her report of deficiencies, such as material adjustments, detected by the audit process.

Condition: There were numerous adjustments for the year ended June 30, 20 25 that were discovered by us through the audit process. Such significant ad justments included the areas of cash and investments, loans receivable, fund balance, capita l a s s e t s a n d r e l a t e d depreciation, accounts payable, accrued liabilities, long-term debt, and unearned revenue.

Status: The matter was not resolved and was repeated in the schedule o f findings and questioned costs as item 2025-01.

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CITY OF BELL GARDENS
Bell Gardens, California

Report On Communication
With Those Charged With Governance

June 30, 2025

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CITY OF BELL GARDENS
Bell Gardens, California

Report On Communication
With Those Charged With Governance

June 30, 2025

INDEX

PAGE

R EPORT ON COMMUNICATION WITH THOSE CHARGED WITH GOVERNANCE 1 - 3

E XHIBIT A - FINDINGS, GENERAL RECOMMENDATIONS AND OTHER MATTERS 4 - 5

E
XHIBIT B - AUDIT ADJUSTMENTS 6 - 7

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1 438 Old Newport Blvd, Newport Beach, CA 92663
Phone (949) 346-2900 –www.gruberlopezinc.com

City of Bell Gardens
Bell Gardens, California

To the Honorable Mayor and City Council:

We have audited the financial statements of the government acti vities, business-type activities, each major fund, and the aggregate remaining fund information o f the City of Bell Gardens, California (City) for the year ended June 30, 2025, and have issued our report thereon dated April 13, 2026. Professional standards require that we provide you w ith information about our responsibilities under generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance, as well as certain information related to the contract dated September 15, 2025. Professional standards also require that we communicate t o you the following information related to our audit.

Significant Audit Matters
Qualitative Aspects of Accounting Practice
Management is responsible for the selection and use of appropri ate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements.

During fiscal year 2025, the City adopted Statement on Governme ntal Accounting Standards (GASB Statement) No. 101-Compensated Absences and the financial statement have been adjusted accordingly. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.

Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowle dge and experience about past a nd current events and assumptions about future events. Certain accounting estimates a re particularly sensitive because of their significance to the financial statements and because o f the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimate affecting the City’s financial statements was:
 Management’s estimate of capitalizing certain infrastructure assets that prolong its’ useful life (as opposed to classifying as routine maintenance expense) and depreciation expense on capital assets. We have evaluated the key factors and assump tions used to estimate the capitalization of infrastructure assets and useful lives on dep reciation expense in determining that they are reasonable in relation to the financial statements taken as a whole.  Management’s estimate of the net pension liability and net OPEB liability and their allocation to various funds. We have evaluated the key factors and assumptions used to estimate the net pension liability and its allocation to variou s funds of the City in determining that they are reasonable in relation to the financial statements taken as a whole.  Management’s estimate of present value of future lease payments for lease and subscription liabilities.
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2 City of Bell Gardens
Honorable Mayor and City Council
Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The most sensitive disclosure affecting the financial statements was:
 The disclosure of Contingencies in Note 11 to the financial sta tements concerning potential claims against the City for possible disallowed costs or noncompliance with certain grantor restrictions. As of the date of this letter, Ma nagement is not aware of any disallowed costs or noncompliance with grantor restrictions.

Difficulties Encountered in Performing the Audit
Other than the finding described as item 2025-1 below which was also described in more detail in the schedule of findings and questioned costs, we encountered no significant difficulties in dealing with management in performing and completing our audit.

Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and l ikely misstatements identified during the audit, other than thos e that are trivial, and commun icate them to the appropriate level of management. We noted a several significant adjustments as a result of audit procedures (see Exhibit B).

Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the finan cial statements or the auditor ’s report. We are pleased to report that no such disagreements arose during the course of our audit.

Management Representations
We have requested certain representations from management that are included in the management representation letter dated April 13, 2026.

Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other acco untants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations.

Other Audit Findings or Issues
We generally discuss a variety of matters, including the applic ation of accounting principles and auditing standards, with management each year prior to retention as City of Bell Garden’s auditors.

However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.
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3 City of Bell Gardens
Honorable Mayor and City Council
Other Matters
We applied certain limited procedures to City of Bell Gardens, which is required supplementary information (RSI) as listed in the table of contents of the financial statements that supplements the basic financial statements. Our procedures consisted of inquiri es of management regarding the methods of preparing the information and comparing the informat ion 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 did not audit the RSI and do not express an opinion or provide any assurance on the RSI.

We were engaged to report on the supplementary information as listed in the table of contents of the financial statements, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to dete rmine that the information complies with accounting principles generally accepted in the U nited States of America, the method of preparing it has not c hanged from the prior period, a nd the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.

We were not engaged to report on the statistical section information as described in the table of contents in the financial statements, which accompany the finan cial statements but are not RSI.

Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opi nion or provide any assurance on it.

We also became aware of matters that are opportunities for stre ngthening internal controls and operating efficiency. This lette r does not affect our report da ted April 13, 2026, on the financial statements of the City. Our comments are summarized in the attached Exhibit A. We will review the status of these comments during our next audit engagement. We have already discussed many of these comments and suggestions with various City personnel, and we will be pleased to discuss these comments in further deta il at your convenience, to perfor m any additional study of these matters, or to assist you in implementing the recommendations.

Restriction on Use
This
report is intended solely f or the information and use of t he City Council and management, and is not intended to be and should not be used by anyone other than these specified parties.

GRUBER AND LOPEZ, INC.

Newport Beach, California
April 13, 2026
Gruber and Lopez, Inc.
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EXHIBIT A

FINDINGS, GENERAL RECOMMENDATIONS, AND OTHER MATTERS

4 Significant Deficiency and Material Weakness:

2025-1 Statement on Auditing Standards (SAS) No. 122, AU-C 265

Statement on Auditing Standards (SAS) No. 122, AU-C 265 Communi cating Internal Control Matters Identified in an Audit (formerly SAS No. 115) p rovides examples of conditions and events that may i ndicate the existence of risk o f material misstatement.

Paragraph .A11 of the standard r equires that the auditor includ e in his or her report of deficiencies, such as material a djustments, detected by the aud i t p r o c e s s . T h e r e w e r e numerous adjustments for the year ended June 30, 2025 that were discovered by us through the audit process. Such significant adjustments included the areas of cash and investments, loans receivable, fund balance, capital assets and related depr eciation, accounts payable, accrued liabilities, long-term debt, and unearned revenue.

See detailed finding and manage ment’s response to finding discl osed as item 2025-01 in our Single Audit Report on the Schedule of Expenditures on Federal Awards under Schedule of Findings and Questioned Costs.

General Recommendations and Other Matters:

2025-2 Remittance to County of Proceeds from Successor Agency Property Sales

Proceeds from the sale of properties, identified in the Successor Agency's State-Approved Long Range Property Management Plan with a recommendation to sell, are required to be remitted to the County of Los Ang eles in order to be disbursed t o t h e a f f e c t e d t a x i n g agencies as part of the dissolution process of the former redevelopment agency to the City of Bell Gardens.

The Successor Agency sold property to the City of Bell Gardens in July of 2000 and then transferred the property back to the Successor Agency in fiscal year June 30, 2024. In December 2023, the Successor Agency then sold the property to a third party, however, as of June 30, 2025 the proceeds had not yet been remitted to the County as it is uncertain if any proceeds are owed since the City owned the property for numerous years. Furthermore, appraisals were not done on the properties before the sales took place.

Recommendation: We recommend that the City and Successor Agency work with the City Attorney to resolve the property sale proceeds issue with the C alifornia Department of Finance as it is unclear if any proceeds are owed since the property was owned by the City and then late transferred back to the Successor Agency. We furt her recommend that appraisals be performed on future properties planning to be sold and that the appraisals be included in the City Councils’ approval resolution.

It should be noted that the Successor Agency is working to ensu re the sale proceeds are utilized and/or allocated in a ccordance with any legal restrict ions on the use of the proceeds.

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EXHIBIT A

FINDINGS, GENERAL RECOMMENDATIONS, AND OTHER MATTERS

5 2025-3 Controls Over Cash and Investments

As noted in Item 2025-1 above, there were numerous audit adjustments discovered during the audit process many of which related to cash and investments. During our testwork over cash and investments, we noted the following:

1. Bank reconciliations were out of balance.

2. Transfers in and out of LAIF investments are initiated by the Accounting Manager and approved by the Finance Director (or vice versa) which is a sou nd control. However, the initiation and approval are not documented.

3. The City’s Investment Policy wa s not approved for fiscal year 2 024-2025 by City Council Resolution as required by City policy to be approved annually.

4. The Finance Director signs the disbursement checks manually but does not compare the printed checks to the invoice.

Recommendation: We recommend the following:

1. Bank reconciliations should be reconciled to the general ledger before providing them to the auditors.

2. A LAIF cover sheet should be created listing the following:
a. The amount of the transfer in/ out and reason for the transfer. b. The signatures of the person initiating the transfer and approving the transfer.

The confirmation from LAIF for the transfer should then be attached to the cover sheet and stored.

3. The City’s Investment Policy be approved annually.

4. The City Manger compare the printed disbursement checks to the related invoice before signing them.

2025-4 Capital Assets, Compensated Absences, and Insurance Benefits Payable

As noted in Item 2025-1 above, there were numerous audit adjustments discovered during the audit process many of which related to capital assets, comp ensated absences, and insurance benefits payable.

Recommendation: We recommend that the Finance Department meet with Public Work s Department soon after fiscal year ended (and before the audit start date) to determine what infrastructure costs should be capitalized as capital assets an d what costs should just be expensed.

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EXHIBIT A

FINDINGS, GENERAL RECOMMENDATIONS, AND OTHER MATTERS

6 2025-4 Capital Assets, Compensated Absences, and Insurance Benefits Payable (continued)

We further recommend that compensated absence be based on MOU p ayrate maximums be generated by the system to calculate what the City is liable for rather than calculate manually. It should also be noted that 8 employees tested were erroneously not included in the compensated absences schedule originally provided to us at the beginning of the audit resulting in an audit adjustment of approximately $138,000.

Lastly, we recommend that Finance Department and Human Resource Department meet to ensure that all benefit payables with variances recorded in pre vious years be corrected (amounting to approximately $139,000 of audit adjustments).

2025-5 Cash Disbursement Controls

During our testwork on cash disb ursements, we noted that there were approximately $146,000 of stale dated checks ranging from 6 months to 9 years old.

Recommendation: We recommend that all stale dated check be revi ewed to determine if they should be either re-issued or written off in order to comply with the City’s stake dated check policy.

2025-6 Loans Receivable

During our testwork on loans receivable, we noted that there wa s a $35,000 loan outstanding from a citizen of the City (Maria Chacon) who is deceased and no one at the City has any documentation of the loan agreement.

We also noted that the City used a third party AmeriNational to record and track CDBG loans but the City terminated their services in the current fiscal year resulting in numerous audit adjustments to loans rece ivable as noted in item 2025-1 a bove. Furthermore, there was no documentation in the minutes for the termination.

Recommendation: We recommend that the City research to determine if the loan receivable can be repaid or if it should be written off.

We further recommend that the City hire a new third party company to record and track all CDBG loans if the City lacks the staffing to do so in order to eliminate audit adjustments.

Also, all significant transactions such as third party terminations should be approved in the minutes.

2025-7 Late Filing of Federal Data Collection Form

The City was not in compliance wi th the Uniform Grant Guidance (UGG) nine-month filing requirement of the federal data collection form for fiscal year 2025.

Recommendation: We recommend that the City complete its annual audit and single audit earlier in subsequent years to allow for the federal data collection form to be filed on-time in accordance with UGG requirements.

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Sub Acct #/ Dept # Account Dept Name 2025 AJE # AJE $ 0000 110-1010-0000 Cash 21,027,171.68 <1> 458,896.40 0000 110-2530-0000 Assigned Fund Balance (26,588,106.70) <1> (458,897.00) 110-3610 Interest Income-Pooled (657,948.51) <1> 13,850.00 116-3374 Reimbursable Grants- Federal (120,497.73) <1> (1.00) 2820 117-4333-2820 Legal Services-Non Retain 14,428.50 <1> (1.00) 151-3610 Interest Earned (17,983.77) <1> 1.00 0000 152-2530-0000 Unreserved Fund Balance 42,231.13 <1> 1.00 152-3610 Interest Earned (2,512.53) <1> (1.00) 0000 154-2530-0000 Unreserved Fund Balance (18,484.21) <1> (1.00) 0201 154-4444-0201 Reimbursable Overtime (13.90) <1> 13.90 172-3610 Interest Earned (3,193.94) <1> (1.00) 181-3610 Interest Income (22,213.14) <1> (1.00) 0000 182-2530-0000 Assigned Fund Balance (2,206.33) <1> (1.00) 182-3610 Interest Income (54.44) <1> 1.00
0000 210-2500-0000 Balance Sheet Control 459.00 <1> (458.00) 210-3610 Interest Income-Pooled (19,317.49) <1> 457.00 0000 240-2530-0000 Unreserved Fund Balance (676,162.98) <1> 1.00 240-3390 Trash Tonnage Fees (3,948,010.83) <1> (1.00) 250-3625 Waste Hauler Franchise Fees (716.20) <1> 1.00 0000 255-2530-0000 Unreserved Fund Balance <1> 102,777.00 0000 280-2500-0000 Balance Sheet Control 118.18 <1> (119.00) 280-3610 Interest Income-Pooled (23,777.12)
<1> 120.00
282-3610 Interest Income-Pooled (543.91) <1> (1.00)
0000 285-2530-0000 Unreserved Fund Balance (1,990,256.48) <1> (1.00) 285-3610 Interest Income-Pooled (41,994.29) <1> 2.00 0000 286-2530-0000 Unreserved Fund Balance (1,246,281.43) <1> (1.00) 0003 363-2220-0003 Unearned Revenue (3,010,281.51) <1> 3,010,281.51 one sided 0000 363-2530-0000 Unreserved Fund Balance 2,589,718.49 <1> (2,637,181.00) one sided 363-3376 Reimbursable Grants_Non-Federal (3,010,281.51) <1> 1.00 0000 510-2020-0000 Bond Interest Payable 317,328.35 <1> (317,328.35) 0001 510-2040-0001 Deferred Inflows - OPEB NEW (379,271.50) <1> 189,474.50 0000 510-2330-0000 Premium on bonds 2.65 <1> (2.65)
0000 510-2501-0000 Fund Balance Budgetary Control 1,566,843.17 <1> 127,854.00 510-3810 Other Revenue (13,518.59) <1> 5.00 520-3724 Pro Shop and Rentals (2,827.99) <1> (1.00) 819-3820 Refunds & Reimbursements (74,379.38) <1> (1.00) 829-22200-0003 Unearned Revenue (791,030.39) <1> 791,030.39 one sided 0000 829-2530-0000 Unreserved Fund Balance (6,055.50) <1> (99.00) one sided 829-3811 Asset Seizure Forfeitures-LA Clear (174,696.18) <1> 99.00 one sided 0000 831-2500-0000 Balance Sheet Control 34,067.26 <1> (34,067.26) 0202 831-4441-0202 OTS Reimbursable OT 92,633.19
<1> 34,067.26
0000 931-2531-0000 Fund Balance-Current Year (63,622.00) <1> 1.00 931-3613 Interest- Cash with Fiscal Agent (52.47) <1> (2.00) 934-3613 Interest- Cash with Fiscal Agent (57.78) <1> 1.00 0000 935-1010-0000 Cash 3,370,204.99 <1> (458,896.40) 0000 935-2500-0000 Balance Sheet Control 17,723.62 <1> 441,172.40 935-3801 Residual Receipts (87,805.62) <1> 17,724.00 0000 110-1010-0000 Cash 21,027,171.68 <2> (637,020.37) 9161 110-4900-9161 Transfer Out 769,139.09 <2> 637,020.37 0000 117-2500-0000 Balance Sheet Control 95,339.00 <2> (59,602.77) 3140 117-4441-3140 Vehicles (59,602.77) <2> 59,602.77 118-1010-0000 Cash <2> 84,231.99
118-3900 Transfers in <2> (84,231.99)
0000 255-1010-0000 Cash (657,439.15) <2> 552,788.38 255-3900 Transfers in <2> (552,788.38)
0000 362-1010-0000 Cash (6,000,000.00) <2> 6,000,000.00 3888 362-4777-3888 Ford Park Aquatic Center Project 6,000,000.00 <2> (6,000,000.00) 0000 363-1010-0000 Cash 3,057,744.23 <2> (8,721,159.74) 0000 363-1150-0000 Accounts Receivable <2> 3,100,000.00 0002 363-2220-0002 Unavailable <2> (3,100,000.00)
3888 363-4777-3888 Ford Park Aquatic Center Project - <2> 8,721,159.74 0000 364-1010-0000 Cash (1,221,159.74)
<2> 1,221,159.74
3888 364-4777-3888 Ford Park Aquatic Center Project 1,221,159.74 <2> (1,221,159.74) 0000 365-1010-0000 Cash (1,500,000.00) <2> 1,500,000.00 3888 365-4777-3888 Ford Park Aquatic Center Project 1,500,000.00 <2> (1,500,000.00) -
Bell Gardens
Exhibit B-Audit
Adjustments 6/30/2025
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Account name Acct# wp ref DR CR
3 Cash with fiscal agent 901-1030-0000 51.2 16,685.33
Cash 931-1010-0000 16,513.42
Cash 934-1010-0000 171.86
Cash 510-1010-0000 0.05
Cash 901-1010-0000 16,685.33
Cash with fiscal agent 931-1030-0000 51.2 16,513.42
Cash with fiscal agent 934-1030-0000 51.2 171.86
Cash with fiscal agent 510-1030-0000 51.2 0.05
To correct the cash with fiscal agent journal entries to tie to the statements.
4 Accumulated depreciation 510-1640-0001 64.2 5,016.44
Depreciation expense 510-4650-2998 64.2 5,016.44
To correct the over depreciation recorded.
5 CalHome reimbursement 264-3381 58.1 135,000.00
CalHome G-Owner Occupied Loan 264-1290-0001 58.1 135,000.00 To relass the payment back to the City for the loan and take out a $60K payment made in 25.26. 6 CalHome G-Owner Occupied Loan Def Int 264-1290-0003 58.1 3,934.15 Deferred Rev-1st Time Home Buyer Int 264-2220-0001 58.1 3,934.15 To record 3% annual interest of on outstanding loans
as of 6/30/25.
7 Loan Receivable - CalHome 264-1291-0000 58.16 278,571.06 Def Revenue 60 day 264-2220-0002 58.16 278,571.06
To record Cal Home activity for FY 24/25.
8 Vehicles 110-4441-3140 50.1d 59,602.77
Vehicles 117-4441-3140 50.1d 60,341.56
Other equipment 110-4117-3150 50.1d 20,783.22
Cash 110-1010-000 50.1d 59,602.77
Cash 117-1010-000 50.1d 60,341.56
Cash 110-1010-000 50.1d 20,783.22
To record cash corrections.
9 Principal Expense - Bond 931-5110-4010 71.2c 1,083,450.00 Interest Expense - Bond 931-5110-4020 71.2c 179,370.70
Vouchers Payable 931-2010-0000 71.2c 1,262,820.70
To correct VP reclsss from PY.

Bell Gardens
Exhibit B-Audit
Adjustments
6/30/2025
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10 Deferred Rev-1st Time Home Buyer Int 264-2220-0001 58.16 2,925.00 CalHome G-Owner Occupied Loan Def Int 264-1290-0003 58.16 2,925.00 To write off interest owed but not collected by BG, JT wanted to write off. 11 Vouchers payable 110-2010-0000 58.19 40,833.33
Due from other governements 110-1320-0000 58.19 40,833.33 JT duplicated HUB cities transaction in 24/25, this is the reversal. 12 Seepayroll payable clean up journal at 25.1c - client 13 See Standard insurance payable clean up journal at 25.1d - client 14 Accrued Payroll 110-2150-0000 72.1 106.34
Other employee payables 110-2160-0014 72.1 3,435.53
Supplmental life insurance 110-2160-0029 72.1 13,663.48 PARS payable 110-2160-0031 72.1 75.91
Retirement 110-4441-0300 72.1 140,155.26
PERS payable 110-2160-0002 72.1 3,898.93
BGPWA Dues Payable 110-2160-0007 72.1 975.99
Health ins payable 110-2160-0009 72.1 1,330.86
Cancer ins payable 110-2160-0012 72.1 18,784.09
Anthem Blue Cross Payable 110-2160-0020 72.1 21,025.17
Kaiser Payable 110-2160-0021 72.1 47,085.83
Delta PPO Payable 110-2160-0022 72.1 939.73
Delta PMI Payable 110-2160-0023 72.1 1,327.70
VSP Payable 110-2160-0024 72.1 1,692.63
Standard Life & ADD Payable 110-2160-0025 72.1 40,631.91 Standard STD & LTD Payable 110-2160-0026 72.1 2,717.07
MHN Payable 110-2160-0027 72.1 2,141.67
Executive Disability Insurance 110-2160-0028 72.1 14,884.94 Auditor to correct accrual to payroll testing, client to review accounts. 15 Deferred Revenue-Special 110-2220-0001 53.3 348,318.01 Other Revenue 110-3810 53.3 348,318.01
JT duplicated HUB cities transaction in 24/25, this is the reversal. 2,408,953.42 2,408,953.42
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FY: 2024-25

CITY OF BELL GARDENS

JOURNAL VOUCHER
JE No: AJE
JE Posted Date: 6/30/2025
ACCOUNT ACCOUNT NO.

DESCRIPTION FUND DEPT OBJ DR CR
<1>
Contractual Services 110 4220 2800 9,803.82
MHN Payable 110 2160 0027 9,803.82
FY2425 Sterling Admin service fees were recorded in the Liab. Account PARS Payable 110 2160 0031 15,470.10
Contractual Services 110 4220 2800 15,470.10
FY2425 PARS service fees were recorded in the Liab. Account Standard STD & LTD Payable 110 2160 0026 35,900.35
Standard Life & ADD Payable 110 2160 0025 32,810.41
Supplemental Life Insurance 110 2160 0029 3,089.94
To correct years of miscoding insurance to the correct accounts and clean up the balance sheet Accounts Recievable
Standard Life & ADD Payable 110 2160 0025
Standard STD & LTD Payable 110 2160 0026
To record overpayment to Standard Insurance Co.

Standard Life & ADD Payable 110 2160 0025 248.43
Standard STD & LTD Payable 110 2160 0026 3,451.36
Supplemental Life Insurance 110 2160 0029 3,699.80
To correct years of miscoding insurance to the correct accounts and clean up the balance sheet TOTAL: 64,874.07 64,874.07
EXPLANATION: -
To record reclass Journal Entries that expense was recorded in a liability account.

PREPARED BY: APPROVED BY:

DATE: DATE:

ENTERED BY: AY TYPE:

DATE: BATCH #
x- input
x
x
x
SEe AJE#12 at 25.1
x
x
x
x
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rom clients detail at 72.1c
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438 Old Newport Blvd, Newport Beach, CA 92663
Phone (949) 346-2900 –www.gruberlopezinc.com

Honorable Mayor and City Council
City of Bell Gardens
Bell Gardens, California

Independent Accountants’ Report on Applying Agreed-Upon Procedures Appropriations Limit Worksheets

We have performed the procedures enumerated below on the approp riations limit calculation worksheets of the City of Bell Gardens, California (City) for the year ended June 30, 2025. The City’s management is responsible for the app ropriations limit calculation worksheets.

The City has agreed to and acknowledged that the procedures per formed are appropriate for the intended purpose of meeting the requirements of Section 1.5 of Article XIIIB of the California Constitution (Constitution) and the League of Ca lifornia Cities as presented in the League publication entitled Article XIIIB Appropriations Limitation Uniform Guidelines (Guidelines). This report may not be suitable for any other pu rpose.

The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.

The procedures and associated findings are as follows:

1. We obtained the worksheets referred to above and compared the l imit and annual adjustment factors included in those worksheets to the l imit and annual adjustment factors that w ere adopted by resolution of th e City Council. We also compared the pop ulation and inflation options included in the aforementioned worksheets to those that were selected by a recorded vote.

Results: No exceptions were noted as a result of our procedures.

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City Council
City of Bell Gardens, California
Page Two

2. We recalculated the mathematical computations reflected in the City worksheets.

Results: No exceptions were noted as a result of our procedures.

3. We compared the current year information used to determine the current year limit and found that it agreed to worksheets prepared by t he City and to information provided by the State Department of Finance.

Results: No exceptions were noted as a result of our procedures.

4. We compared the amount of the p rior year appropriations limit p resented in the worksheets to the amount adopted by the City Council for the prior year.

Results: No exceptions were noted as a result of our procedures.

We were engaged by the City to perform this agreed-upon procedu res engagement and conducted our engagement in accordance with attestation standar ds established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review engagement, the objective of w hich would be the expression of an opinion or conclusion, respectively, on meetin g the requirements of the Constitution and Guidelines. Accordingly, we do not express suc h an opinion or conclusion. Had we performed addit ional procedures, other matte rs might have come to our attention that would have been reported to you.

We are required to be independent of the City and to meet our o ther ethical responsibilities, in accordance with the r elevant ethical requi rements related to our agreed-upon procedures engagement.

This report is intended solely f or the information and use of t he City and is not intended to be and should not be used by anyone other than those specifi ed parties. However, this report is a matter of public record and its distribution is not limited.

Gruber and Lopez, Inc.

Newport Beach, California
April 13, 2026
Gruber and Lopez, Inc.
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1 City of Bell Gardens
June 30, 2025
Audit Results
Required Communication
End of Audit
Presented by:

Ron Lopez, CPA, Managing Partner
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 Audit was performed in accordance with
generally accepted auditing standards andGovernment Auditing Standards (more strict).
 The objectives of the audit process is to
ensure the City’s financial statements
present fairly, in all material respects, the
respective statements of financial position
(balance sheet) and activities (income
statement) of the City of Bell Gardens.
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 To meet the objectives of the Audit, and in
accordance with auditing standards, we
performed various tests. Some of the more
significant procedures include:
◦ Documentation and testing of internal controls
over all accounting cycles.
◦ On a sample basis, we test disbursements,
transfers, and journal entries for compliance
with the City’s policies, and where applicable,
compliance with State and Federal grant
requirements.
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◦ Confirm from 3 rd parties cash, investments, certain
revenues and receivables, long term debt
commitments, and obtain and analyze attorney
responses.
◦ Perform compliance and allowable costs tests on
the use of federal funds.
◦ Reconcile City’s general ledger to detailed sub-
ledgers.
◦ Evaluate the reasonableness of the City’s estimates
and assumptions.
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 ACFR
 Report on compliance and internal control
over financial reporting in accordance with
Government Auditing Standards
 Report on compliance and internal control
over federal major programs in accordance
with Uniform Guidance
 Appropriation (GANN) Limit Agreed Upon
Procedures on compliance
 Communication letter to those charged with
governance (management letter)
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 We issued an
unmodified opinion on the
City’s financial statements on April 13,
2026.
 Unmodified opinion is the highest opinion
an auditor can issue.
 One material weakness and significant
deficiency notedin internal controls under
GAS, as follows:
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 Finding: Statement on Auditing Standards (SAS) No. 122 requires that the auditor include in his or her report of deficiencies, such as material adjustments, detected by the audit process.
 There were several adjustments for the year ended June 30, 2025 that were discovered by us through the audit process. Such significant adjustments included the areas of cash and investments, loans receivable, fund balance, capital assets and related depreciation, accounts payable, accrued liabilities, long-term debt, and unearned revenue.
 Recommendation: Client adjustments should be reflected in the accounting records prior to the start of the audit in order to make audit fieldwork as efficient as possible and to avoid auditor adjustments.  Management’s Response:Management concurs with the finding and will strive to reduce audit adjustments in the future.
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 No non-compliance which is material to the
financial statements under GAS.
 No material weakness or significant
deficiencies in internal controls under UGG
major federal programs.
 The Appropriation Limit report disclosed no
findings.
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 The City has been the recipient of the
Government Finance Officers Association
(GFOA) Certificate of Achievement for
Excellence in Financial Reporting for the
June 30, 2023 Audit Report .
 The June 30, 2024 and 2025 Annual
Comprehensive Financial Report (ACFR)
have been submitted to the GFOA for
consideration.
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 Preparation of a ACFR includes audit
opinion and financial statements, in
addition the following of which no opinion
is placed:
◦ Letter of Transmittal
◦ Management Discussion and Analysis
◦ Statistical Section – 22 separate charts on various
functions of the City
 We believe the 2025 CAFR will again receive
the GFOA award.
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 Management Discussion and Analysis (page 4
of ACFR) is an important component of the
ACFR which will give you a good understanding
on the financial highlights of the June 30, 2025
fiscal year.
 Some of the highlights of the 2025 year
include:
 The largest Government-wide revenue source was the
card club taxes, a general revenue, $15.4 M, which
decreased from $18.2 M, from the preceding fiscal year . 1 1
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◦ The assets and deferred outflow of the City exceeded its liabilities and deferred inflows at the close of Fiscal Year 2025 resulting in a net position of $79.7 M. This was an increase by $76 K.
◦ Total revenues of $76.6 M which comprised of $33.5 M in program revenues and $43.1 M in general revenues and
transfers.
◦ Governmental activity expenses decreased by $16 M, or 22% from the preceding fiscal year .
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◦ The Water Utility System and Golf Course revenues totaled $3.7 M which increased by $860 K from the preceding fiscal year due to a water rate hike, while the Golf Course
experienced a slight decrease of $66 K.
◦ The City’s investment in capital assets for governmental and business-type activities as of June 30, 2025 was
$126.2M (net accumulated depreciation) as compared to
prior year of $112.4 M.
◦ Long-term debt increased by $10.6 M to $119.9M . The
most significant decrease was in other post employment
obligations, net pension liability (CALPERS) and accrued leave payable.
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Total Fund Financial Statement Analysis:
◦ As of fiscal year ended June 30, 2025, the City’s
governmental funds reported combined ending fund
balance of $27.9 M, an decrease of $20.5 M, or 57%,
primarily due to $58 M of unavailable revenue the which a significant portionshould be earned in the subsequent year.

General Fund:
 As of fiscal year ended June 30, 2025, the City’s General Fund actual revenues were lower than budgeted by $2.7M.  Actual expenditures exceeded budget by $10M.
 Decrease in fund balance (i.e. net income) was $12.5M which decreased equity to $25.3M
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Questions or comments?
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