Agenda packet, first session — Bellflower City Council, June 12, 2023 (part 1 of 4)

T h e C i t y o f B e l l f l o w e r
Families. Businesses. Futures.
16600 Civic Center Drive, Bellflower, CA 90706
Tel 562.804.1424 Fax 562.925.8660 www.bellflower.org

Next CC Resolution No. 23-25 Next CC Agreement No. 1001 Next Ordinance No. 1425

In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk’s Office at (562) 804 -1424, extension 2220 or [email protected]. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting.

Agenda Items are on file in the Office of the City Clerk and are available for public inspection during normal business hours. For your convenience, the Agenda is also posted on the City’s Website at www.bellflower.org with links to each Agenda Item (unless they are too lengthy or unavailable at the time of posting). Any supplemental material distributed to a majority of the members of the City Council/Successor Agency after the posting of this Agenda will be made available for public inspection during normal business hours in the City Clerk’s Office at City Hall, 16600 Civic Center Drive, Bellflower. (Privileged documents and Closed Session documents are exempted.)

REGULAR MEETING OF THE BELLFLOWER CITY COUNCIL

MONDAY, JUNE 12, 2023

BELLFLOWER CITY HALL - COUNCIL CHAMBERS
5:30 P.M. CLOSED SESSION / 7:00 P.M. OPEN SESSION

5:30 P.M. – CLOSED SESSION

1 CALL TO ORDER

2 ROLL CALL: Mayor Sonny R. Santa Ines
Mayor Pro Tem Raymond Y. Hamada
Council Member Ray Dunton
Council Member Dan Koops
Council Member Victor A. Sanchez

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AGENDA

Bellflower City Council Agenda
June 12, 2023

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3 RECESS TO CLOSED SESSION

A CONFERENCE WITH LABOR NEGOTIATOR
(Pursuant to Government Code Section 54957.6)

Agency Negotiator: Jeffrey L. Stewart, City Manager
Employee Organization: • AFSCME Local 1511 – Mid Managers • BCEA – Executive Assistants
• BCEA – Part Time Community Services Officers and
Part Time Maintenance Workers
• AFSCME Local 3745 – Maintenance Workers and
Community Services Officers

B CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Significant exposure to litigation pursuant to Government Code Section 54956.9(d)(2): One Matter

C CONFERENCE WITH LEGAL COUNSEL – INITIATION OF LITIGATION - GOVERNMENT CODE § 54956.9(d)(4). Number of Cases: One.

4 RECONVENE FOR OPEN SESSION

7:00 P.M. – OPEN SESSION

5 CALL TO ORDER

6 ROLL CALL: Mayor Sonny R. Santa Ines
Mayor Pro Tem Raymond Y. Hamada
Council Member Ray Dunton
Council Member Dan Koops
Council Member Victor A. Sanchez

7 INVOCATION: Council Member Dan Koops

8 PLEDGE OF ALLEGIANCE: Jim DellaLonga, Director of Economic Development

9 CITY COUNCIL ANNOUNCEMENTS / PRESENTATIONS

A City Council Announcements

Bellflower City Council Agenda
June 12, 2023

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10 PUBLIC COMMENTS

This is the time set aside for the public to address the City Council on matters not listed on the Agenda. Anyone wishing to address the City Council should come to the podium, be recognized by the Mayor, and state your name for the record. If you wish to address the City Council on an Agenda Item, you may do so by approaching the podium as we review that particular item. You will be given three (3) minutes to address the City Council.

11 PUBLIC HEARINGS

None

12 ORDINANCES AND RESOLUTIONS FOR CONSIDERATION

None

13 CONSIDERATION ITEMS

A Consideration and possible action to adopt Resolution No. 23-18 – A Resolution implementing Title 14 of the Bellflower Municipal Code by establishing policies and procedures for obtaining, modifying, and maintaining Cannabis Business Permits (“CBP”); and superseding Resolution Nos. 21-07 and 21-08. [Continued from May 22, 2023] Recommendation to City Council: 1) Consider adopting Resolution No. 23 -18; or 2) Alternatively, discuss and take other action related to this item.

B Consideration and possible action to consider: 1) a Modification Application for two existing Cannabis Business Permits (“CBP”) for dispensary and distribution uses for EEL Holdings, LLC (dba Catalyst - Bellflower); and 2) a request to convert a previously held manufacturing CBP to a second distribution CBP at 9032-9038 Artesia Boulevard. [Continued from May 22, 2023]
Recommendation to City Council: 1) Approve a Modification Application for two existing Cannabis Business Permits (“CBP”) for dispensary and distribution uses for EEL Holdings, LLC (dba Catalyst - Bellflower); 2) If desired, approve a request to convert a previously held manufacturing CBP to a second distribution CBP at 9032-9038 Artesia Boulevard; 3) At the request of the Mayor, discuss the feasibility of prohibiting publicly traded companies from participating in cannabis permittees as an “owner” as define d by the Cannabis Regulations; or 4) Alternatively, discuss and take other action related to this item.

Bellflower City Council Agenda
June 12, 2023

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14 CONSENT CALENDAR

All items under the Consent Calendar are considered by the City Council to be routine and will be enacted by one motion. Specific items may be removed from the Consent Calendar at the request of any member of the City Council for separate consideration.

A Consideration and possible action to receive and file City Council Warrant Register No. 23-121, dated June 12, 2023.

Recommendation to City Council: 1) Receive and file Warrant Register No. 23-121; or 2) Alternatively, discuss and take other action related to this item.

B Consideration and possible action to adopt Resolution No. 23-21 – A Resolution adopting the annual appropriations limit for fiscal year 2023-2024. _____________________
Recommendation to City Council: 1) Adopt Resolution No. 23-21; or 2) Alternatively, discuss and take other action related to this item.

C Consideration and possible action to adopt Resolution No. 23-22 – A Resolution adopting the Operating Budget for fiscal years 2023-2025 including the Capital Improvement Budget.

Recommendation to City Council: 1) Adopt Resolution No. 23-22; or 2) Alternatively, discuss and take other action related to this item.

D Consideration and possible action to authorize the City Manager to suspend Chapter 5 of the Bellflower Business Assistance Program (Small Business Microloans). _____
Recommendation to City Council: 1) Direct the City Manager to suspend Chapter 5 of the Bellflower Business Assistance Plan; or 2) Alternatively, discuss and take other action related to this item.

E Receive and file an update regarding the termination of Lease Agreement AFN 698.1 between Bulletin Displays, LLC and the City of Bellflower, for the lease of public property for digital outdoor advertising.__________________ Recommendation to City Council: 1) Receive and file the update regarding the termination of Lease Agreement AFN 698.1; or 2) Alternatively, discuss and take other action related to this item.

F Consideration and possible action to authorize the Director of Public Works, or designee, to install an on-street disabled parking space (blue curb) at 9538 Arkansas Street (C.E. #23-06). ________________________________ Recommendation to City Council: 1) Authorize the Director of Public Works, or designee, to install the on-street disabled parking space (blue curb) at 9538 Arkansas Street; or 2) Alternatively, discuss and take other action related to this item.

Bellflower City Council Agenda
June 12, 2023

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14 CONSENT CALENDAR – Continued

G Consideration and possible action to award a contract to Long Beach Ford LLC DBA BP Ford of Long Beach for the purchase of four 2023 F-150 pick-up trucks for the Public Safety and Public Works Departments which meet South Coast Air Quality Management District (AQMD) standards under Assembly Bill (AB) 2766, and authorize the City Manager to execute a contract with Long Beach Ford LLC DBA BP Ford of Long Beach, in a form approved by the City Attorney._______________________________________ Recommendation to City Council: 1) Award a contract to BP Ford for the purchase of four 2023 F-150 pick-up trucks; and authorize the City Manager to execute a contract with BP Ford, in a form approved by the City Attorney; or 2) Alternatively, discuss and take other action related to this item.

H Consideration and possible action to authorize the Director of Public Works, or designee, to install red curb parking restrictions at the northeast corner of Palo Verde Avenue and Artesia Boulevard (C.E. #23-07).

Recommendation to City Council: 1) Authorize the Director of Public Works, or designee, to install red curb parking restriction at the northeast corner of Palo Verde Avenue and Artesia Boulevard; or 2) Alternatively, discuss and take other action related to this item.

I Consideration and possible action to adopt Resolution No. 23-23 – A resolution approving the specifications for the Local Streets Grind and Cap (Specifications No. 22/23-01), pursuant to Government Code §830.6, establishing a project payment account; and authorizing solicitation of bids.

CEQA: Pursuant to the California Environmental Quality Act (CEQA) (Public Resources Code §§ 21000, et seq.) and CEQA Guidelines (California Code of Regulations, Title 14, §§ 15000, et seq.), the City conducted an environmental assessment. Based on the environmental assessment, the project was determined to be categorically exempt pursuant to CEQA Guidelines § 15303 (Class 1 – Existing Facilities).

Recommendation to City Council: 1) Adopt Resolution No. 23-23; or 2) Alternatively, discuss and take other action related to this item.

J Consideration and possible action to authorize the Director of Public Works, or designee, to install red curb parking restrictions at the southeast corner of Beach Street and Ardmore Avenue (C.E. #23-08).

Recommendation to City Council: 1) Authorize the Director of Public Works, or designee, to install red curb parking restriction s at the southeast corner of Beach Street and Ardmore Avenue; or 2) Alternatively, discuss and take other action related to this item.

Bellflower City Council Agenda
June 12, 2023

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14 CONSENT CALENDAR – Continued

K Consideration and possible action to adopt Resolution No. 23-24 – A Resolution establishing the Capital Improvement Projects Budget for Fiscal Year 2023-2024 funded by Senate Bill 1: Road Repair and Accountability Act of 2017.

Recommendation to City Council: 1) Adopt Resolution No. 23-24 and carryover the unexpended RMRA funds to Fiscal Year 2023-2024 in the same budget Account No. 145-47050-9000; or 2) Alternatively, discuss and take other action related to this item.

L Consideration and possible action to authorize the City Manager to execute Amendment No. 3 to Agreement File No. 928, in a form approved by the City Attorney, with RJM Design Group, Inc., for bidding support and construction administration of improvements at Thompson Park and Constitution Park._ Recommendation to City Council: 1) Authorize the City Manager to execute Amendment No. 3 to Agreement File No. 928, in a form approved by the City Attorney; or 2) Alternatively, discuss and take other action related to this item.

M Consideration and possible action to approve the Minutes of the May 22, 2023, Regular Meeting of the City Council.

Recommendation to City Council: 1) Approve the May 22, 2023, Regular Meeting Minutes; or 2) Alternatively, discuss and take other action related to this item.

N Consideration and possible action to receive and file Official Travel Report – California Contract Cities Association, 64th Annual Municipal Seminar, May 18 - 21, 2023 (Pursuant to AB 1234).

Recommendation to City Council: 1) Receive and file the Official Travel Report for the California Contract Cities Association 64th Annual Municipal Seminar; or 2) Alternatively, discuss and take other action related to this item.

15 COUNCIL REPORTS

16 ADJOURNMENT

Adjourn to the next Regular Meeting of the Bellflower City Council at 5:30 p.m. on Monday, June 26, 2023.

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TO: Honorable Mayor and Members of the City Council

ATTENTION: Jeffrey L. Stewart, City Manager

FROM: Travis Sais, Assistant to the City Manager

SUBJECT: Consideration and possible action to adopt Resolution No. 23-18 – A Resolution implementing Title 14 of the Bellflower Municipal Code by establishing policies and procedures for obtaining, modifying, and maintaining Cannabis Business Permits (“CBP”); and superseding Resolution Nos. 21-07 and 21-08. [Continued from May 22, 2023]

DATE: June 12, 2023

EXECUTIVE SUMMARY

This item was continued from the May 22, 2023 City Council Meeting.

On March 30, 2023, the City Manager received a modification request from EEL Holdings, LLC (dba Catalyst – Bellflower) which, among other things, sought to convert its previous held manufacturing Cannabis Business Permit (CBP) to a distribution CBP. Although EEL Holdings, LLC already holds a distribution CBP at 9032-38 Artesia Boulevard, with the recent expansion of its distribution component, it asserts the distribution locations under one distribution CBP eliminates its ability to treat the two separate facilities as separate operating assets.

Consequently, EEL Holdings, LLC states this arrangement imposes significant legal and administrative costs on the overall enterprise. Therefore, EEL Holdings, LLC is seeking an additional distribution CBP for its expanded distribution component. The expanded distribution component was authorized by the City Council at the December 15, 2022 Special City Council Meeting with the renewal of EEL Holdings, LLC’s existing distribution CBP.

Adopting Resolution No. 23-18 would supersede Resolution Nos. 21-07 and 21-08 to implement Title 14 of the Bellflower Municipal Code. Among other things, Resolution No. 23-18 would amend the definition of a “Conversion Applicant” and a “Modified Cannabis Business Permit (CBP).” Resolution No. 23-18 would establish the procedures by which EEL Holdings, LLC (as well as other existing CBP permittees) may convert its previously held CBP for a manufacturing use into a CBP for an additional distribution use.

RECOMMENDATION TO CITY COUNCIL

1) Consider adopting Resolution No. 23-18; or

2) Alternatively, discuss and take other action related to this item.

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Staff Report – Resolution No. 23-18
June 12, 2023

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FISCAL IMPACT

No fiscal impact with respect to this action.

DISCUSSION

On October 14, 2022, EEL Holdings, LLC (“EEL”), submitted its Cannabis Business Permit (CBP) renewal application for dispensary and distribution CBPs. As part of its renewal application, EEL informed the City that it was looking to: 1) cease its manufacturing operations at the designated premises; and 2) convert the manufacturing facility to a distribution facility in order to help supply its growing retail footprint. Ultimately, this was authorized by the City Council with the renewal of EEL’s distribution CBP on December 15, 2022, at the Special City Council meeting.

On April 13, 2023, staff received a modification request from EEL which, among other things, sought to convert its previous held manufacturing CBP to a distribution CBP. Although EEL already holds a distribution CBP at 9032 Artesia Boulevard, with the recent expansion of its distribution component, it asserts the distribution locations under one distribution CBP eliminates its ability to treat the two separate facilities as separate operating assets.

Consequently, EEL states this arrangement imposes significant legal and administrative costs on the overall enterprise. Therefore, EEL Holdings, LLC is seeking an additional distribution CBP for its expanded distribution component. The expanded distribution component was authorized by the City Council at the December 15, 2022 Special City Council Meeting with the renewal of EEL Holdings, LLC’s existing distribution CBP.

Adopting Resolution No. 23-18 would supersede Resolution Nos. 21-07 and 21-08 in their entirety to implement Title 14 of the Bellflower Municipal Code by amending the definition of a “Conversion Applicant” and a “Modified CBP” to the following:

“Conversion Applicant” means a person with one or more valid CBPs that seek to convert one or more CBPs from one CBP Category to another.

“Modified CBP” means an application requesting to modify an existing CBP by changing ownership, business name, or CBP Category.

Resolution No. 23-18 would provide the method for existing CBP permittees to convert previously held CBPs for a manufacturing use into a CBP for an additional distribution use.

Resolution No. 23-18 also consolidates the content of Resolution Nos. 21-07 and 21-08 into one resolution.

ATTACHMENT

Resolution No. 23-18…………………..………………………………………………...………… 3

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CITY OF BELLFLOWER

RESOLUTION NO. 23-18

A RESOLUTION IMPLEMENTING TITLE 14 OF THE BELLFLOWER

MUNICIPAL CODE BY ESTABLISHING POLICIES AND PROCEDURES

FOR OBTAINING, MODIFYING, AND MAINTAINING CANNABIS
BUSINESS PERMITS (“CBP”); AND SUPERSEDING RESOLUTION
NOS. 21-07 AND 21-08

THE CITY COUNCIL RESOLVES AS FOLLOWS:

SECTION 1: Purpose. This Resolution is intended to implement Bellflower Municipal Code (“BMC”) Title 14 by, among other things, consolidating and restating all currently applicable Cannabis Regulations (as defined below); and superseding policies and procedures that are now outdated. Nevertheless, unless amended or superseded by this Resolution all parts of the uncodified Cannabis Regulations (as defined below) remain in full force and effect.

SECTION 2: Maximum CBPs. Pursuant to BMC § 14.08.030(A), the City Council authorizes a maximum total of 22 CBPs. Of these, a maximum of four cannabis dispensary CBPs may be active at any time. CBPs may be granted for recreational cannabis use. The following types of cannabis-related business activities are authorized with a CBP issued in accordance with the Cannabis Regulations including, without limitation, this Resolution:

A. Cannabis cultivation (including a nursery component);

B. Cannabis dispensary (including the incidental retail sale of cannabis accessories and cannabis delivery);

C. Cannabis manufacturing; and

D. Cannabis distribution (see Business and Professions Code §§ 26001 and 26070).

SECTION 3: Definitions. Unless the contrary is stated or clearly appears from the context, the following definitions will govern the construction of the words and phrases used in this Resolution. Words and phrases undefined in this Resolution have the same meaning as set forth in BMC Chapter 3.37 (Cannabis Tax); Chapter Title 14 (Cannabis-Related Businesses); Chapter 17.94 (Cannabis-Related Uses); and the Cannabis Regulations.

“Applicant” means any person seeking a CBP in accordance with the Cannabis Regulations including, without limitation, persons with an existing CBP seeking a different CBP Category and/or a Modified CBP.

“Application Fee” means those fees established by city council resolution in accordance with the BMC.

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“Business Name” means the name of the permittee holding a valid CBP issued in accordance with the Cannabis Regulations.

“Cannabis Regulations” means this Resolution along with all other cannabis related regulations including, without limitation, Bellflower Municipal Code (“BMC”) Chapters 3.37 and 17.94; BMC Title 14; Resolution No. 17-44 (adopted August 14, 2017); Resolution No. 17-65 (adopted October 9, 2017); Resolution No. 18-05 (adopted February 26, 2018); Resolution No. 18-69 (adopted October 22, 2018); Resolution No. 19-33 (adopted April 29, 2019); Resolution No. 19-65 (adopted August 12, 2019); Resolution No. 20-75 (adopted December 10, 2020); Resolution No. 21-07 (adopted January 11, 2021); and Resolution No. 21-08 (adopted February 8, 2021).

“CBP” means a cannabis business permit issued in accordance with the Cannabis Regulations. For purposes of this Resolution, the singular includes the plural, i.e., “CBP” is intended to include all CBPs held by a permittee.

“CBP Category” means the cannabis-related businesses listed in Section 2 of this Resolution.

“CBP Renewal” means an application submitted pursuant to the Cannabis Regulations including, without limitation, BMC § 14.08.060. The phrase “CBP application” may include a “CBP Renewal application.”

“Conversion Applicant” means a person with one or more valid CBPs that seek to convert one or more CBPs from one CBP Category to another.

“Modified CBP” means an application requesting to modify an existing CBP by changing ownership, business name, or CBP Category.

“Origination Date” means the date upon which the City Council issued the original CBP to a permittee. For example, at the time this Resolution was adopted, all existing permittees were issued a CBP on or about December 18, 2017 which constitutes the Origination Date for those permittees.

“Ownership” means either of the following:

A. A person with an aggregate ownership interest of 25 percent or more in the person seeking a CBP or a permittee seeking a CBP Renewal, unless the interest is solely a security, lien, or encumbrance; or

B. An individual who will be participating in the direction, control, or management of a permittee.

“Permittee” means a person who holds a valid CBP in accordance with the Cannabis Regulations.

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SECTION 4: Applications Generally. Conditional use permits (“CUPs”) and cannabis business permits (“CBPs”) were previously considered by the City Council as a joint application in accordance with the Cannabis Regulations. This Resolution assumes that all CUPs were approved and recorded in accordance with the Cannabis Regulations.

Any future applications for a cannabis related CUP must be filed and processed in accordance with the BMC; joint applications will not be processed.

SECTION 5: Application Fees. Applications submitted for any CBP must be accompanied by an Application Fee.

SECTION 6: Conversion Applicants. A Conversion Applicant must file an application with the City Manager, or designee, to seek conversion from one CBP Category to another. Such application must demonstrate that the permittee complies with all aspects of its existing CBP. The application must also provide a supplementary security plan that must be approved by the City Manager, or designee, to ensure that there are sufficient protections to public health and safety from any new security concerns arising from utilization of the new CBP Category. Such approval cannot be unreasonably withheld. A Conversion Applicant may appeal any decision regarding the security plan to the City Council in accordance with the BMC.

SECTION 7: Combined Applications. A Conversion Applicant may seek a Modified CBP as part of the same application.

SECTION 8: Form and Content of Application. In addition to the requirements set forth in BMC § 14.08.040, applications for any CBP including those for a new CBP Category must be in a form prescribed by the City Manager, or designee. Unless otherwise provided by the City Manager in writing for a Conversion Applicant or a Modified CBP application, all CBP applications must comply with the following:

A. Be filed by a natural person in the name of each Applicant. The person filing the application must have an existing ownership interest in the Applicant.

B. Every application must be signed under penalty of perjury.

C. Include the name, mailing address, and daytime and evening telephone numbers of the person filing the application;

D. The business name, address, and telephone number; (if applicable) the number of any existing CBP; and a single fixed location for which a CBP is sought;

E. The applicant’s Federal Employer Identification Number;

F. If the applicant is not the owner of record of the property, the applicant must provide a notarized statement from the owner of the property acknowledging and consenting to the application for a CBP;

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G. The name and mailing address authorized by each proprietor to receive all notices. If such an address is not supplied, notices will be sent to the business address;

H. Government issued identification to determine that each applicant, manager, and employee of the cannabis related business is over 18 years of age;

I. Whether or not the proprietor was previously issued a CBP that was suspended or revoked and, if so, the dates of the suspension period or revocation date;

J. Documentation demonstrating that that 75 percent of the applicants and managers of the cannabis related business are California residents and have been for at least three years immediately preceding the date of the application;

K. Evidence of the legal right for the applicant to occupy and use real property proposed for a cannabis related business. In the event that the applicant is not the owner of record of the property, the applicant must provide a notarized statement from the owner of the property acknowledging and consenting to use of the real property as a cannabis related business by the applicant; and

L. Such other information as the City Manager, or designee, deems reasonably necessary for administering or enforcing BMC Title 14.

M. If an applicant is a corporate entity, the application must also include:

1. A copy of the applicant’s Articles of Incorporation or Articles of Organization;

2. A copy of the applicant’s bylaws or operating agreement;

3. A copy of the applicant’s Certificate of Status issued by the California Secretary of State;

4. A copy of the applicant’s Entity Status Letter from the California Franchise Tax Board;

5. The identification of any individual with a financial interest in the applicant including the address, phone number, email address, description of percentage ownership interest, and copies of government issued identification for each individual; and

6. Such other information as the City Manager, or designee, deems reasonably necessary for administering or enforcing BMC Title 14.

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N. If the application seeks a change to the Business Name, the application must also include:

1. A copy of the applicant’s Articles of Incorporation or Articles of Organization;

2. A copy of the applicant’s bylaws or operating agreement;

3. A copy of the applicant’s Certificate of Status issued by the California Secretary of State; and

4. A copy of the applicant’s Entity Status Letter from the California Franchise Tax Board.

O. If the application seeks an ownership change, the application must also include:

1. Evidence demonstrating there has been no change in ownership since the Origination Date;

2. Evidence demonstrating that the ownership will be substantially the same as on the Origination Date. Such evidence must include a comparison of owner interest (percent owned by each owner) between the origination date and application for a Modified CBP, and an affidavit signed under penalty of perjury pursuant to the laws of the State of California that the key individuals will continue in the same position or in a position with greater responsibility; and

3. An explanation regarding the reasons for the request to change ownership.

P. A schedule for beginning operation, including a narrative outlining any proposed construction and improvements and a timeline for completion.

Q. A budget for construction, operation, maintenance, compensation of employees, equipment costs, utility costs, and other operation and maintenance costs.

R. A pro forma for at least three years of operation.

S. How the cannabis related business, including its exterior areas and surrounding public areas, will be managed so as to avoid becoming a nuisance or having impact on its neighbors and the surrounding community.

T. A demonstration that the applicant will implement a local preference plan to hire City of Bellflower residents at 200% above the “Living wage” for the Federal Poverty Level for a family of two.

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U. The application must include a detailed description of Fire prevention, suppression, HVAC and alarm systems that includes an assessment of the cannabis related business’s fire safety by a qualified Fire prevention suppression consultant. An appropriate plan will have considered all possible fire, hazardous material, and inhalation issues/threats and will have both written and physical mechanisms in place to deal with each specific situation.

V. A security plan that includes a description and detailed schematic of the overall security for the cannabis related business. Applicants must detail their operational security including, without limitation, general security policies for the facility, employee specific policies, training, sample written policies, transactional security, visitor security, 3rd party contractor security, and delivery security. In particular, Applicants should address ingress and egress access, perimeter security, product security (at all hours), internal security measures for access (area specific), types of security systems (alarms and cameras), and security personnel to be employed. The security plan must also include an assessment of site security by a qualified security consultant. Such security plans may be submitted in confidence.

W. A traffic and parking study prepared by a licensed engineer to mitigate vehicle and parking impacts. The traffic and parking study must be prepared by a state licensed traffic engineer in accordance with Los Angeles County’s Traffic Impact Analysis Report Guidelines (January 1997) and Institute of Transportation Engineers, Parking Generation, 4th Edition. The traffic engineer preparing the study should define an appropriate approach for determining the amount of trips generated by the type of cannabis-related uses proposed and present this approach in the study. For example, and not limitation, a traffic engineer could equate cannabis manufacturing based upon the ITE Manual definitions for manufacturing of like size; or, for dispensaries, use the ITE Manual definition for retail outlets specializing in herbal products.

X. An annual contribution of $5,000 to a Drug Rehabilitation Program or Homeless Prevention Program identified by City Council resolution or minute order.

SECTION 9: Minimum Qualifications. In addition to all other requirements of applicable law including, without limitation, BMC Title 14, applicants must meet the following minimum qualifications:

A. Unless the application is filed by a Conversion Application or is for a Modified CBP without an ownership change, the Applicant must demonstrate that the Applicant is:

1. Is a person of good character, honesty, and integrity;

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2. Is a person whose background, reputation and associations will not result in adverse publicity for the City of Bellflower or its economic development; and

3. Has adequate business competence and practical experience for operating the cannabis related business.

4. Each person listed in the application will undergo a Fingerprint- Based Criminal History Records Check conducted by the City Police Department (or the Los Angeles County Sheriff’s Department) which may include Live Scan and any indicated follow-up investigation.

5. Each person listed in the application must disclose whether it was (or is) a defendant in any current or past civil or criminal enforcement action. If such enforcement action is concluded, the person must disclose the outcome; if such enforcement is pending, the applicant must disclose its status.

B. If there is a proposed change in ownership that adds persons not previously considered by the City Council on the Origination Date, those persons must meet the requirements in Section 9(A).

C. The applicant must demonstrate that obtaining a CBP will be in the best interests of the City of Bellflower. The following objective criteria may be used in making such a determination for issuing a CBP:

1. Has there been an adequate period of performance by the applicant demonstrating experience for operating a cannabis related business?

2. Does the applicant have sufficient key personnel to operate a cannabis related business to demonstrate effective managerial capacity and control of operations?

3. Does the applicant have other cannabis related businesses inside or outside the City’s jurisdiction that demonstrate the applicant’s competency in operating such businesses?

4. Does the applicant have a reasonable and practical business plan for operating a cannabis related business within the City’s jurisdiction?

5. Notwithstanding the BMC’s minimum requirements as to permissible locations, is the cannabis facility proposed by the applicant in a location acceptable to the City Council; aesthetically pleasing; and adequate in size?

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6. Would the applicant provide a public benefit in the form of removing blight; improving public welfare; or otherwise assisting in advancing the City’s public interests?

D. There must be adequate financing to pay all current obligations and to provide adequate working capital to finance opening of a cannabis related business (which may be shown in a business plan described below). “Adequate financing” means a minimum of $400,000 as demonstrated by a letter of credit or other financial records.

E. The applicant must demonstrate that the proposed funding of the cannabis related business is:

1. Adequate for the nature of the proposed operation; and

2. From a suitable source. The suitability of the source of funds is determined by the criteria set forth in Section 9(A) (1-3), above.

F. As to the real property upon which the cannabis related business is proposed, the applicant must either:

1. Own the real property in fee; or

2. Be a long-term lessee with a possessory interest in the real property.

For purposes of this Resolution, a “long term” lessee means the applicant must have a lease with a term of at least 10 years to use the real property for a cannabis related business.

SECTION 10: Deadline. All applicants must file an application with the City Clerk’s Office by a time and date determined by the City Manager or City Council by minute order.

SECTION 11: Review of Application. The City Manager, or designee, is authorized to review all applications submitted pursuant to the Cannabis Regulations in accordance with the following:

A. Applications may be denied for any of the reasons set forth in the Cannabis Regulations.

B. In addition to any other requirements of the Cannabis Regulations, the City Manager must also consider:

1. As to a business name change, whether the new business name will either violate community standards or confuse City residents or consumers regarding the services being provided by the permittee.

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residents or consumers are likely to mistakenly assume that goods/services offered by both businesses come from a common source. In making that determination, the City Manager may consider, without limitation, how and where the parties’ goods or services are advertised, marketed, and sold; the purchasing conditions; the range of prospective purchasers of the goods or services; and whether there is any evidence of actual confusion.

2. As to an ownership change, whether the permittee will substantially retain its ownership structure a s compared with the Origination Date; whether the proposed ownership change meets the requirements of the Cannabis Regulations; and whether the ownership change is sufficiently routine to justify a Modified CBP.

C. For CBP Renewal applications, the City Manager must consider whether the permittee maintained its ownership as required by BMC § 14.08.070 between the time of filing an initial applicable for a CBP and filing a renewal application in any subsequent year. To do so, a CBP Renewal application must provide evidence that a permittee did not change its name; corporate structure; or any other part of its ownership to the City Manager’s satisfaction absent good cause shown as determined in the City Manager’s sole discretion.

SECTION 12: Recommendations.

A. Upon receiving a timely filed Application, the City Manager, or designee, will determine the completeness of the Application in accordance with the Cannabis Regulations and this Resolution.

B. Following the City Manager’s consideration of the applications, the City Manager will provide a recommendation to the City Council regarding whether an application should be approved.

SECTION 13: Consideration; Conditions. The City Council may determine whether to grant a Modified CBP during a special or regular meeting. If granted, a Modified CBP will:

A. Expire at the same time as the existing CBP. A Modified CBP cannot extend the term of an existing CBP;

B. Except for CBP Renewal applications and Conversion Applications, the City Council will conduct a public hearing in accordance with the Cannabis Regulations. For CBP Renewal applications the City Manager (in accordance with the BMC) or City Council may determine whether a CBP Renewal should be issued.

C. Be subject to the same terms and conditions of the existing CBP.

-11-

City of Bellflower
Resolution No. 23-18

Page 10 of 11 ends

D. Becomes effective upon the permittee executing an acknowledgement of all conditions of approval.

E. If desirable, the City Council may determine the order for considering Applications during the public hearing to be based upon a random drawing conducted by the City Clerk. Applications will be considered by the City Council using a “forced ranking” system to determine which, if any, person will receive a CBP or CBP Renewal, if desirable.

F. The applicant will comply with all requirements of the Cannabis Regulations.

SECTION 14: Application Forms; Standard Conditions of Approval. All application forms and standard conditions of approval previously approved by the Cannabis Regulations may continue to be utilized by the City Manager, or designee. The City Manager is authorized to make changes to such forms and conditions as desirable and in a form approved by the City Attorney. No additional City Council approval is required for such changes. Applicant(s) will be required to provide signed acknowledgement of acceptance of the conditions of approval before City Council consideration if an application is recommended for approval.

SECTION 15: Taxes. In addition to any other applicable taxes, CBP permittees must also pay a business license tax and cannabis tax in accordance with the BMC. Such taxes are separate and apart from the Application Fee. For a CBP to become effective, a permittee must:

A. Pay the business license tax and obtain a business license in accordance with the BMC (see, BMC §§ 5.08.020 and 5.08.030); and

B. Ensure, to the satisfaction of the City Manager, or designee, that the permittee will pay all cannabis taxes in accordance with the requirements of BMC Chapter 3.37 including, without limitation, acknowledging the forms required to remit the tax.

SECTION 16: Delegation of Authority; Ratification of Previous Actions. The City Manager, or designee, is authorized to promulgate administrative policies and procedures (“AP&P”) that implement BMC Title 14 and, specifically, such additional qualifications for CBP Renewal or Reconsideration Application that may be desirable for administrative purposes. Nothing in such AP&P can substantively alter this Resolution; the AP&P must be reconciled with the intent of BMC Title 14 and this Resolution.

All previous actions exercised by the City Manager, or designee, to implement the Cannabis Regulations as set forth in this Resolution are ratified by the City Council.

SECTION 17: Preservation; Cannabis Regulations. Anything in this Resolution that supersedes previous actions undertaken to implement BMC § 14.08.050 does not affect any penalty, forfeiture, or liability incurred before, or preclude prosecution and imposition of penalties for any violation occurring before this Resolution’s effective date.

Any such amended or superseded part will remain in full force and effect for sustaining action or prosecuting violations occurring before the effective date of this Resolution. -12-

City of Bellflower
Resolution No. 23-18

Page 11 of 11 ends

Unless amended or superseded by this Resolution, all parts of the uncodified regulations implementing Cannabis Regulations within the BMC remain in full force and effect. Any conflict between this Resolution and the uncodified Cannabis Regulations will be resolved in favor of this Resolution.

SECTION 18: Supplemental Requirements. The policies and procedures established by this Resolution are in addition to, and supplement, all other requirements of the BMC including, without limitation, those set forth in BMC § 14.08.060.

SECTION 19: Severability. If any part of this Resolution or its application is deemed invalid by a court of competent jurisdiction, the City Council intends that such invalidity will not affect the effectiveness of the remaining provision or application and, to this end, the provisions of this Resolution are severable.

SECTION 20: Electronic Signatures. This Resolution may be executed with electronic signatures in accordance with Government Code §16.5. Such electronic signatures will be treated in all respects as having the same effect as an original signature.

SECTION 21: The Mayor, or presiding officer, is authorized to sign this Resolution signifying its adoption by the City Council of the City of Bellflower and the City Clerk, or her duly appointed deputy, may attest thereto.

SECTION 22: This Resolution will become effective immediately upon adoption and will remain effective unless repealed or superseded.

PASSED, APPROVED, AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF BELLFLOWER ON THIS 12NDTH DAY OF JUNE 2023.

________________________________
Sonny R. Santa Ines, Mayor
ATTEST:

_______________________________
Mayra Ochiqui, City Clerk

APPROVED AS TO FORM:

________________________________
Karl H. Berger, City Attorney

-13-

Page 1 of 4 ends

13-B
TO: Honorable Mayor and Members of the City Council

ATTENTION: Jeffrey L. Stewart, City Manager

FROM: Travis Sais, Assistant to the City Manager

SUBJECT: Consideration and possible action to consider: 1) a Modification Application for two existing Cannabis Business Permits (“CBP”) for dispensary and distribution uses for EEL Holdings, LLC
(dba Catalyst - Bellflower); and 2) a request to convert a previously held manufacturing CBP to a second distribution CBP at 9032-9038 Artesia Boulevard. [Continued from May 22, 2023]

Date: June 12, 2023

EXECUTIVE SUMMARY

This item was continued from the May 22, 2023 City Council Meeting.

On March 30, 2023, EEL Holdings, LLC (dba Catalyst – Bellflower) submitted a Cannabis Business Permit (“CBP”) Modification Application (“Application”) for the City Council’s consideration. The Application, among other things, explains the existing and proposed business interests, proprietors and ownership.

EEL Holdings, LLC (“EEL”) submitted the Application with the following requests:
1) approve a modification to name “Catalyst – Bellflower LLC,” a wholly owned subsidiary of “South Cord Holdings, LLC,” as the CBP Permittee; 2) approve a modification to name “Catalyst – Distro LLC,” a wholly owned subsidiary of “South Cord Holdings, LLC,” as the CBP Permittee; and 3) approve a request to convert its previously held manufacturing permit to a distribution permit for the former manufacturing facility – and naming “Distro A LLC,” a wholly owned subsidiary of “South Cord Holdings, LLC,” as the CBP Permittee.

The City Manager reviewed the Application and determined, based on the information provided in the Application, the first two requests appear to meet the requirements specified in the policies and procedures for modifying existing CBPs. The list of South Cord Holdings, LLC financial interest holders is being reviewed and vetted by the City Attorney’s Office. At the time of this writing, that process was still underway; it will be complete by June 12th. Recommended approval of the third request is contingent upon the City Council’s adoption of Resolution No. 23-18 - which would modify the definitions of a “Modified CBP” and a “Converted CBP” in the Cannabis Regulations (See agenda item 13-A on the June 12, 2023 City Council Meeting Agenda). The Application was available for individual City Council Members to review.

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Staff Report – EEL Holdings, LLC (dba Catalyst – Bellflower) Modification Application June 12, 2023

Page 2 of 4 ends

RECOMMENDATION TO CITY COUNCIL

1) Approve a Modification Application for two existing Cannabis Business Permits (“CBP”) for dispensary and distribution uses for EEL Holdings, LLC (dba Catalyst - Bellflower);

2) If desired, approve a request to convert a previously held manufacturing CBP to a second distribution CBP at 9032-9038 Artesia Boulevard;

3) At the request of the Mayor, discuss the feasibility of prohibiting publicly traded companies from participating in cannabis permittees as an “owner” as defined by the Cannabis Regulations; or

4) Alternatively, discuss and take other action related to this item.

FISCAL IMPACT

CBP modification applications are required to pay a review fee of $3,410.00 to recover processing costs. EEL paid that fee on March 30, 2023. EEL is also current on all taxes remitted to the City.

DISCUSSION

On March 30, 2023, EEL submitted a CBP Modification Application for the City Council’s consideration. The Application, among other things, explains the existing and proposed business interests, proprietors and ownership.

EEL submitted the Application with the following requests:

1) approve a modification to name “Catalyst – Bellflower LLC,” a wholly owned subsidiary of “South Cord Holdings, LLC,” as the CBP Permittee; 2) approve a modification to name “Catalyst – Distro LLC,” a wholly owned subsidiary of “South Cord Holdings, LLC,” as the CBP Permittee;
3) approve a request to convert its previously held manufacturing permit to a distribution permit for the former manufacturing facility – and naming “Distro A LLC,” a wholly owned subsidiary of “South Cord Holdings, LLC,” as the CBP Permittee.
a. Or, alternatively, issue a new CBP for distribution at the former manufacturing facility – and naming Distro A LLC, a wholly owned subsidiary of South Cord Holdings, LLC, as the CBP Permittee.

EEL states in its Application that in order to finance its enterprise expansion, it was required to raise funds from shareholders and lenders and to establish South Cord Holdings LLC (“SCH”) as the holding company for the Catalyst assets. -2-

Staff Report – EEL Holdings, LLC (dba Catalyst – Bellflower) Modification Application June 12, 2023

Page 3 of 4 ends

DISCUSSION – Continued

EEL further explains this has allowed for it to: 1) secure additional investment; 2) simplify management and operations; 3) rationalize legal ownership; 4) consolidate assets; and 5) obtain valuation synergies. To that end, it further explains it is proactively working to reorganize its legacy assets – such as the Bellflower distribution and retail/dispensary assets – so that they can become part of the SCH holding structure and further its business objectives.

Currently, Elliot Lewis is listed as the sole owner and manager of EEL Holdings, LLC.

Per the submitted Application, Elliot Lewis will continue to be the sole owner and manager of the new CBP Permitees (Catalyst – Bellflower LLC; Catalyst – Distro LLC; and Distro A LLC). Specifically, Elliot Lewis is listed as the largest shareholder of SCH and is the only shareholder of SCH with an equity interest at or above 25%. In addition, Elliot Lewis is further explained as the designated manager of SCH and is the sole and absolute authority over all of the affairs of SCH, including the management and operation of its cannabis businesses. The submitted Application included an affidavit stating that Elliot Lewis is the sole manager and sole decision-making authorty of South Cord Holdings LLC, and also the sole decision-making authority of Catalyst – Bellflower LLC, Catalyst – Distro LLC, and Distro A LLC.

The City Manager reviewed the Application and determined the first two requests appear to meet the requirements specified in the policies and procedures for modifying existing CBPs. The list of the SCH financial interest holders is being reviewed and vetted by the City Attorney’s Office. At the time of this writing, that process was still underway; it will be complete by June 12th.

On December 15, 2022, the City Council considered CBP renewals for existing permittees. Following the review of EEL’s renewal application, it was granted the renewal of two CBPs, one for its distribution use and the other for its dispensary use. EEL indicated in its renewal application that it ceased its manufacturing operations and sought to expand its distribution operation into the manufacturing space. Ultimately, the distribution expansion was approved with the renewal of EEL’s existing distribution CBP and it did not renew the manufacturing CBP.

EEL states in its Modification Application that it is now requesting to convert its previously held manufacturing CBP to a separate distribution CBP because the existing arrangement (having the two distribution facilities under one CBP) eliminates its ability to treat the two separate facilities as separate operating assets – thereby imposing significant legal and administrative costs on the overall enterprise. It states this current arrangement:

1. Complicates accounting practices;

2. Complicates complex compliance practices;
a. It anticipates running into difficulty with the State when trying to obtain a second distribution license / where the local jurisdiction (City of Bellflower) has only issued one CBP.

3. Increases legal liability exposures;
-3-

Staff Report – EEL Holdings, LLC (dba Catalyst – Bellflower) Modification Application June 12, 2023

Page 4 of 4 ends

DISCUSSION – Continued

4. Reduces business flexibility in future transactions; and

5. Increases insurance premiums.

Nonetheless, in order for a previously held manufacturing CBP to be converted to a distribution CBP, the Cannabis Regulations would need to be amended to allow for this conversion. Hence, EEL’s third request in its Modification Application is contingent upon the City Council’s adoption of Resolution No. 23-18 - which would modify the definitions of a “Modified CBP” and a “Converted CBP” (See agenda item 13-A on the May 22, 2023 City Council Meeting Agenda).

During the May 22, 2023 meeting, the Mayor requested that the City Council discuss the feasibility of prohibiting publicly traded companies from participating as “owners” – as defined by the City’s Cannabis Regulations – in cannabis businesses regulated by the Bellflower Municipal Code. From a legal standpoint, the City Council may define ownership to exclude such companies from participating as “owners” of permittees. The City Council has broad discretion to impose such a requirement.

How this would affect cannabis businesses from a practical standpoint is unknown. A review of the several cannabis business permittees shows that none of the publicly traded corporations that own an interest in those permittees would qualify as an “owner” under the City’s current Cannabis Regulations. Moreover, the only known publicly traded company that is a shareholder in any of the current permittees is a Canadian based company.

ATTACHMENT

EEL Holdings, LLC Modification Request Letter………………………..…………………....5 -4-

-5-

-6-

-7-

-8-

14-A

TO: Honorable Mayor and Members of the City Council

ATTENTION: Jeffrey L. Stewart, City Manager

FROM: Tae Rhee, Finance Director/City Treasurer

SUBJECT: Consideration and possible action to receive and file Warrant Register No. 23-121, dated June 12, 2023.

DATE: June 12, 2023

EXECUTIVE SUMMARY

Section X.B of the Budget, Financial and Administrative Policies stipulates the City’s process in executing warrants for the payment of goods and services, as well as the requirement to make each warrant register a matter of public record by placing it on the City Council Agenda as a Consent Calendar item.

RECOMMENDATION

1) Receive and file Warrant Register No. 23-121; or

2) Alternatively, discuss and take other action related to this item.

FISCAL IMPACT

$4,354,611.04 in expenditures.

ATTACHMENT

Warrant Register No. 23-121 .......................................................................................... 2

Fund No.CITY OF BELLFLOWER:
010 General Fund 2,241,956.18$
013 DOT Highway Relinquishment Fund 755,656.08
024 Park Facilities Fund 5,760.00
030 Grant Projects Fund 671,428.63
040 PEG Fund 579.37
050 Supplemental Law Enforcement Services Fund (State)982.94 090 Agency Fund/Refundable Deposits - Private Projects 17,820.00 100 Proposition A Fund - Transportation 74,467.95
125 Measure R Fund - Transportation / Streets 2,441.53
135 Proposition C Fund - Transportation / Streets 68,683.51 145 Road Maintanence and Rehabilitation Account (RMRA) Fund 7.85 31X Municipal Water System 358.90
320 Measure W Fund- Water 164,235.67
510 Economic Development Fund 2,234.00
600 Building and Safety Fund 70,610.37
602 CASp Certification and Training Fund 8.00
900 Community Development Block Grant Fund 1,256.48
910 HOME Fund 10,000.00
944 Parking District No. 1 Fund 1,327.60
974 Low and Moderate Income Housing Asset Fund 5,634.10 Total Accounts Payable 4,095,449.16
Payroll Check Payments (Pay Period Ending 06/02/23)259,161.88 Total Expenditures - City 4,354,611.04$

WARRANT REGISTER FUND SUMMARY

CITY OF BELLFLOWER
(Warrant Register No. 23-121, Dated June 12, 2023)
http://sharepoint/sites/Finance/Shared Documents/Warrant Registers/Warrant Register Cover Page Template

REPORT.: 06/06/23 City of Bellflower PAGE: 001 RUN....: 06/06/23 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: 20434 (20434 SOUTH SANTA FE AVENUE, LLC)

....................................................................................................................................

VENDOR.: 36002 (360 MARTIAL ARTS ACADEMY)

....................................................................................................................................

VENDOR.: 37O01 (37 OAKS CONSULTING)

....................................................................................................................................

VENDOR.: A&G02 (A&G SALES FENCE & SUPPLY)

....................................................................................................................................

VENDOR.: ADM01 (ADMIRAL PEST CONTROL, INC)

REPORT.: 06/06/23 City of Bellflower PAGE: 002 RUN....: 06/06/23 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: ADM01 (ADMIRAL PEST CONTROL, INC) ..Continue..

---- WARRANT ----- --------------------------------------- DISTRIBUTION --------------------------------------- Invoice No Number Date Amount Paid G/L Account No Ctr Description ---------- ------ -------- ------------ -------------- --- -------------------------------------------------- 2191187 XXXXXX 05/24/23 69.00 310 46000 6010 02/23 PEST CONTROL SERVICES/MWS 2192073 XXXXXX 05/24/23 135.00 010 46031 3900 02/23 PEST CONTROL SERVICES/CONSTITUTION PARK 2193796 XXXXXX 05/24/23 199.00 010 46013 3900 02/23 PEST CONTROL SERVICES/BAC 2194659 XXXXXX 05/24/23 135.00 010 46031 3900 03/23 PEST CONTROL SERVICES/CONSTITUTION PARK 2195563 XXXXXX 05/24/23 53.00 010 46022 3900 03/23 PEST CONTROL SERVICES/PIRATE PARK 2197195 XXXXXX 05/24/23 199.00 010 46013 3900 03/23 PEST CONTROL SERVICES/BAC 2198028 XXXXXX 05/24/23 69.00 310 46000 6010 03/23 PEST CONTROL SERVICES/16913 LAKEWOOD/MWS 2198849 XXXXXX 05/24/23 53.00 010 46022 3900 04/23 PEST CONTROL SERVICES/PIRATE PARK 2198869 XXXXXX 05/24/23 135.00 010 46031 3900 04/23 PEST CONTROL SERVICES/CONSTITUTION PARK 2200821 XXXXXX 05/24/23 199.00 010 46013 3900 04/23 PEST CONTROL SERVICES/BAC 230228BZP XXXXXX 05/24/23 600.00 010 46028 3900 02/23 PEST CONTROL SERVICES/BYRUM ZINN PARK 230228ECF XXXXXX 05/24/23 308.00 010 46030 3900 02/23 PEST CONTROL SERVICES/THE MAYNE EVENT CENTER 230228RVP XXXXXX 05/24/23 224.00 010 46025 3900 02/23 PEST CONTROL SERVICES/RIVERVIEW PARK 230331BZP XXXXXX 05/24/23 600.00 010 46028 3900 03/23 PEST CONTROL SERVICES/BYRUM ZINN PARK 230331ECF XXXXXX 05/24/23 385.00 010 46030 3900 03/23 PEST CONTROL SERVICES/THE MAYNE EVENT CENTER 230331RVP XXXXXX 05/24/23 224.00 010 46025 3900 03/23 PEST CONTROL SERVICES/RIVERVIEW PARK 230430BZP XXXXXX 05/24/23 785.00 010 46028 3900 04/23 PEST CONTROL SERVICES/BYRUM ZINN PARK 230430ECF XXXXXX 05/24/23 224.00 010 46030 3900 04/23 PEST CONTROL SERVICES/THE MAYNE EVENT CENTER 230430RVP XXXXXX 05/24/23 224.00 010 46025 3900 04/23 PEST CONTROL SERVICES/RIVERVIEW PARK B230228CH XXXXXX 05/24/23 396.00 010 46000 8000 02/23 PEST CONTROL SERVICES/CITY HALL B230228CP XXXXXX 05/24/23 600.00 010 46012 3900 02/23 PEST CONTROL SERVICES/CARUTHERS PARK B230228NH XXXXXX 05/24/23 700.00 010 46000 8010 TSS 02/23 PEST CONTROL SERVICES/NEW HOPE SHELTER B230228SP XXXXXX 05/24/23 396.00 010 46010 3900 02/23 PEST CONTROL SERVICES/SIMMS PARK B230228SS XXXXXX 05/24/23 195.00 010 46000 2000 02/23 PEST CONTROL SERVICES/SUBSTATION B230228TP XXXXXX 05/24/23 578.00 010 46011 3900 02/23 PEST CONTROL SERVICES/THOMPSON PARK B230331CH XXXXXX 05/24/23 483.00 010 46000 8000 03/23 PEST CONTROL SERVICES/CITY HALL B230331CP XXXXXX 05/24/23 750.00 010 46012 3900 03/23 PEST CONTROL SERVICES/CARUTHERS PARK B230331NH XXXXXX 05/24/23 875.00 010 46000 8010 TSS 03/23 PEST CONTROL SERVICES/NEW HOPE SHELTER B230331SP XXXXXX 05/24/23 495.00 010 46010 3900 03/23 PEST CONTROL SERVICES/SIMMS PARK B230331SS XXXXXX 05/24/23 230.00 010 46000 2000 03/23 PEST CONTROL SERVICES/SUBSTATION B230331TP XXXXXX 05/24/23 578.00 010 46011 3900 03/23 PEST CONTROL SERVICES/THOMPSON PARK B230430CH XXXXXX 05/24/23 396.00 010 46000 8000 04/23 PEST CONTROL SERVICES/CITY HALL B230430CP XXXXXX 05/24/23 600.00 010 46012 3900 04/23 PEST CONTROL SERVICES/CARUTHERS PARK B230430NH XXXXXX 05/24/23 500.00 010 46000 8010 TSS 04/23 PEST CONTROL SERVICES/NEW HOPE SHELTER B230430SP XXXXXX 05/24/23 180.00 010 46010 3900 04/23 PEST CONTROL SERVICES/SIMMS PARK B230430SS XXXXXX 05/24/23 195.00 010 46000 2000 04/23 PEST CONTROL SERVICES/SUBSTATION B230430TP XXXXXX 05/24/23 578.00 010 46011 3900 04/23 PEST CONTROL SERVICES/THOMPSON PARK ------------
Vendor's Total = 13598.00
------------

REPORT.: 06/06/23 City of Bellflower PAGE: 003 RUN....: 06/06/23 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: AIR04 (AIRGAS USA, LLC)

....................................................................................................................................

VENDOR.: ALA05 (ALAN'S LAWN AND GARDEN CENTER, INC.)

....................................................................................................................................

VENDOR.: ALL12 (ALL CITY MANAGEMENT SERVICES INC.)

....................................................................................................................................

VENDOR.: AME20 (AMERICAN SHORTLOAD CONCRETE)

REPORT.: 06/06/23 City of Bellflower PAGE: 004 RUN....: 06/06/23 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: APO03 (TAJEN GRAPHICS, INC.)

....................................................................................................................................

VENDOR.: ATL03 (ATLAS BACKFLOW)

....................................................................................................................................

VENDOR.: BEA01 (BEACON ATHLETICS LLC)

....................................................................................................................................

VENDOR.: BEE04 (ROBIN COWAN)

....................................................................................................................................

VENDOR.: BEL02 (BELLFLOWER-SOMERSET MUTUAL WATER COMPANY)

REPORT.: 06/06/23 City of Bellflower PAGE: 005 RUN....: 06/06/23 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: BEL02 (BELLFLOWER-SOMERSET MUTUAL WATER COMPANY) ..Continue..

....................................................................................................................................

VENDOR.: BEL11 (BELLFLOWER HOME GARDEN WATER COMPANY)

....................................................................................................................................

VENDOR.: BLU01 (BLUE DIAMOND MATERIALS)

REPORT.: 06/06/23 City of Bellflower PAGE: 006 RUN....: 06/06/23 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: BRO01 (BROWN BOLT & NUT CORP)

....................................................................................................................................

VENDOR.: BUR01 (BURKE,WILLIAMS & SORENSEN, LLP)

....................................................................................................................................

VENDOR.: BUT03 (BUTLER CHEMICALS, INC.)

....................................................................................................................................

VENDOR.: BYM01 (GERRIT J. BYMA)

REPORT.: 06/06/23 City of Bellflower PAGE: 007 RUN....: 06/06/23 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: CAL58 (CA. ASSOC OF CODE ENFORCEMENT OFFICERS)

25.20 900 41200 4150 CCEO APPLICATION FEE ------------
Vendor's Total = 210.00
------------

....................................................................................................................................

VENDOR.: CAL75 (CALVARY CHAPEL CHRISTIAN)

....................................................................................................................................

VENDOR.: CEN03 (CENTRAL BASIN MUNICIPAL WATER DISTRICT)

....................................................................................................................................

VENDOR.: CHA27 (CHARLES SCHWAB TRUST BANK)

....................................................................................................................................

VENDOR.: CIT25 (CITY NET)

REPORT.: 06/06/23 City of Bellflower PAGE: 008 RUN....: 06/06/23 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: COP01 (OZZIE NUNEZ DBA COPY SET)

....................................................................................................................................

VENDOR.: COR01 (CORBIN WILLITS SYSTEMS, INC)

30.94 100 42030 3500 06/23 FINANCIAL SOFTWARE SUPPORT

46.41 135 42030 3650 06/23 FINANCIAL SOFTWARE SUPPORT ------------
Vendor's Total = 1547.04
------------

....................................................................................................................................

VENDOR.: CRA05 (MICHELE L. CRAVENS-WORLEY)

....................................................................................................................................

VENDOR.: CRA06 (CRAFTWATER ENGINEERING, INC.)

REPORT.: 06/06/23 City of Bellflower PAGE: 009 RUN....: 06/06/23 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: DEL17 (ANA MARIA DELGADO)

....................................................................................................................................

VENDOR.: DEP05 (DEPARTMENT OF TRANSPORTATION)

....................................................................................................................................

VENDOR.: DEP16 (DEPARTMENT OF JUSTICE)

....................................................................................................................................

VENDOR.: DIG04 (DIGITAL DOLPHIN SUPPLIES)

....................................................................................................................................

VENDOR.: DUA02 (DUANE MORITA)

REPORT.: 06/06/23 City of Bellflower PAGE: 010 RUN....: 06/06/23 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: ELY01 (ELYSIAN ARTS & EVENTS, LLC DBA SOCA ARTS)

....................................................................................................................................

VENDOR.: EMP05 (EMPLOYMENT DEVELOPMENT DEPARTMENT)

....................................................................................................................................

VENDOR.: EMP06 (EMPIRE TRANSPORTATION, INC.)

....................................................................................................................................

VENDOR.: FER05 (FERGUSON ENTERPRISES, LLC)

REPORT.: 06/06/23 City of Bellflower PAGE: 011 RUN....: 06/06/23 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: FIR10 (COSCO FIRE PROTECTION, INC.)

....................................................................................................................................

VENDOR.: FRO07 (FRONTIER COMMUNICATIONS)

....................................................................................................................................

VENDOR.: FUN06 (FUN EXPRESS, LLC)

....................................................................................................................................

VENDOR.: GAR06 (ANDREA B. CALIP TRUST)

REPORT.: 06/06/23 City of Bellflower PAGE: 012 RUN....: 06/06/23 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: GLA01 (GLASBY MAINTENANCE SUPPLY)

50.00 010 46020 3900 CLEANING SUPPLIES
333186A XXXXXX 05/18/23 645.61 010 46010 3900 CLEANING SUPPLIES 332383A XXXXXX 05/24/23 201.67 010 46010 3900 CLEANING SUPPLIES

25.00 010 46020 3900 CLEANING SUPPLIES
333277A XXXXXX 05/24/23 414.83 010 46011 3900 CLEANING SUPPLIES 414.83 010 46013 3900 CLEANING SUPPLIES
333564A XXXXXX 06/01/23 1966.47 125 46000 3910 CLEANING SUPPLIES 282.54 010 46000 3900 CLEANING SUPPLIES
333606A XXXXXX 06/01/23 821.62 010 46000 8000 CLEANING SUPPLIES 821.61 010 46030 3900 CLEANING SUPPLIES
333647A XXXXXX 06/01/23 561.53 010 46010 3900 CLEANING SUPPLIES

62.39 010 46020 3900 CLEANING SUPPLIES
------------
Vendor's Total = 6710.84
------------

....................................................................................................................................

VENDOR.: GNG01 (G & G SECURITY INC.)

....................................................................................................................................

VENDOR.: GOG01 (GO GREEN INTERIOR PLANTS)

....................................................................................................................................

VENDOR.: GOL01 (GOLDEN WEST PIPE & SUPPLY)

REPORT.: 06/06/23 City of Bellflower PAGE: 013 RUN....: 06/06/23 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: GOL12 (GOLDEN STAR TECHNOLOGY INC. (GST))

....................................................................................................................................

VENDOR.: GON12 (KIMBERLY GONZALEZ)

....................................................................................................................................

VENDOR.: GRA06 (GRAINGER, INC.)

....................................................................................................................................

VENDOR.: GRO04 (GROUND PENETRATING RADAR SYSTEMS, LLC)

REPORT.: 06/06/23 City of Bellflower PAGE: 014 RUN....: 06/06/23 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: H&H02 (H & H NURSERY, INC.)

....................................................................................................................................

VENDOR.: HAA01 (MITCHEL L. HAACK)

....................................................................................................................................

VENDOR.: HAR08 (HARTZOG & CRABILL, INC)

....................................................................................................................................

VENDOR.: HAS03 (HASA INC)

REPORT.: 06/06/23 City of Bellflower PAGE: 015 RUN....: 06/06/23 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: HDL01 (HINDERLITER, DE LLAMAS & ASSOCIATES)

....................................................................................................................................

VENDOR.: HDL03 (HDL SOFTWARE LLC)

....................................................................................................................................

VENDOR.: HOM01 (HOME DEPOT)

9.06 010 46000 8010 TSS 04/23 PUBLIC WORKS SUPPLIES/HOME DEPOT 893.71 010 46010 3900 04/23 PUBLIC WORKS SUPPLIES/HOME DEPOT 1449.09 010 46011 3900 04/23 PUBLIC WORKS SUPPLIES/HOME DEPOT 652.37 010 46012 3900 04/23 PUBLIC WORKS SUPPLIES/HOME DEPOT

87.98 010 46020 3900 04/23 PUBLIC WORKS SUPPLIES/HOME DEPOT 186.32 010 46022 3900 04/23 PUBLIC WORKS SUPPLIES/HOME DEPOT 130.34 010 46023 3900 04/23 PUBLIC WORKS SUPPLIES/HOME DEPOT 218.67 010 46028 3900 04/23 PUBLIC WORKS SUPPLIES/HOME DEPOT 512.11 010 46030 3900 04/23 PUBLIC WORKS SUPPLIES/HOME DEPOT 147.76 010 46300 3160 04/23 PUBLIC WORKS SUPPLIES/HOME DEPOT

54.61 125 46000 3910 04/23 PUBLIC WORKS SUPPLIES/HOME DEPOT 636.50 135 43100 3620 04/23 PUBLIC WORKS SUPPLIES/HOME DEPOT -59.05 010 43100 3900 04/23 PW SUPPLIES/HOME DEPOT/EARLY PAY DISCOUNT ------------
Vendor's Total = 5790.21
------------

REPORT.: 06/06/23 City of Bellflower PAGE: 016 RUN....: 06/06/23 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: IMP03 (U.S. BANK CORPORATE PAYMENT SYSTEMS)

19.85 900 43110 4152 UNIFORMS/JACKET

12.99 010 43100 2000 OFFICE SUPPLIES

75.00 010 43440 8000 LIVESCAN (QTY 3)
148.83 010 43100 2000 OFFICE SUPPLIES

31.95 010 43100 1000 CELLPHONE EQUIPMENT

23.84 010 43100 4105 OFFICE SUPPLIES/CE

3.25 900 43100 4150 OFFICE SUPPLIES/CE
244.18 010 41100 1000 03/27/23 CITY COUNCIL MEETING EXPENSE

56.16 010 46010 3900 PUBLIC WORKS SUPPLIES

44.04 010 46010 3900 PUBLIC WORKS SUPPLIES 114.14 010 43100 3000 UNIFORMS
400.00 010 41200 3000 MEMBERSHIP DUES/CA.CITY MGMT.FOUNDATION 110.24 010 46013 3900 PUBLIC WORKS SUPPLIES 320.37 600 43100 4120 DELIVERY FEE/16411,17646 BLFR,9400 ROSECRANS PLANS

91.64 010 43100 4100 OFFICE SUPPLIES
3894.58 010 43100 4000 SUPPLIES/ICSC CONFERENCE LAS VEGAS

50.00 010 43010 4000 04/23 ORGANIZATIONAL MANAGEMENT SOFTWARE

81.74 010 41100 1010 SUPPLIES/EMPRENDEDOR@S 802.92 010 41100 1010 SUPPLIES/250 DUAL CHARGING CABLE W/USB

94.35 010 41100 4000 INSURANCE/ICSC CONFERENCE DISPLAY EXHIBIT 1950.00 010 43100 4000 ICSC CONFERENCE LV SHOW 299.99 010 41100 1000 04/24/23 CITY COUNCIL MEETING EXPENSE 146.58 010 41100 1010 SUPPLIES/SIGN/ICSC CONFERENCE LAS VEGAS 1344.89 010 43010 4000 SURVEY MONKEY/BELLFLOWER CONNECT SURVEY

5.49 010 43100 1300 IRS EFILE FEE/F941
953.83 010 43100 1300 OFFICE SUPPLIES
190.00 010 43020 8000 LSL GASB UPDATE 2023 155.00 135 42054 3610 03/23 EMAIL VIRUS SCANNING SERVICE

70.00 010 43020 8000 CSMFO LOCAL MEETING
458.50 900 41355 5022 BLB PROGRAM SUPPLIES -37.97 900 20300 SALES TAX: BLB PROGRAM SUPPLIES

13.22 010 43100 5017 YOUTH PROGRAM SUPPLIES 3970.96 010 41302 1012 SPECIAL EVENT SUPPLIES,EQUIPMENT 286.50 010 43100 5010 OFFICE SUPPLIES

30.00 010 43100 5000 SUBSCRIPTION/OFFICE SECURITY MONITORING

31.98 900 43100 5022 BVC/LEAD PROGRAM SUPPLIES

88.19 010 46200 5017 RECREATIONAL GAME BOARD -128.01 010 46200 5011 REFUND: FIELD EQUIPMENT/THOMPSON PARK

REPORT.: 06/06/23 City of Bellflower PAGE: 017 RUN....: 06/06/23 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: IMP03 (U.S. BANK CORPORATE PAYMENT SYSTEMS) ..Continue..

16.53 900 43100 5022 BVC/LEAD PROGRAM SUPPLIES 247.38 010 43100 5012 OFFICE SUPPLIES

37.49 010 37050 SPECIAL EVENT SUPPLIES/STUDENT ART FESTIVAL

78.16 010 37050 SPECIAL EVENT SUPPLIES/STUDENT ART FESTIVAL 288.97 010 37050 SPECIAL EVENT SUPPLIES/STUDENT ART FESTIVAL

16.67 010 43100 5010 SOFTWARE/STAFF SCHEDULING

11.01 010 41400 1012 SPECIAL EVENT EQUIPMENT

44.55 010 43090 5000 04/05-06/23 SOCIAL MEDIA AD/INSTAGRAM

21.58 010 41400 1012 SPECIAL EVENT EQUIPMENT 1175.81 010 42534 5000 SPECIAL INTEREST PROGRAM SUPPLIES

78.16 010 41400 1012 SPECIAL EVENT SUPPLIES/STUDENT ART FESTIVAL

11.01 010 41400 1012 SPECIAL EVENT SUPPLIES/STUDENT ART FESTIVAL 165.41 010 41400 1012 SPECIAL EVENT SUPPLIES/STUDENT ART FESTIVAL 751.68 010 43020 8000 LODGING/4/11-13/23 CITY CLERK CONF/OCHIQUI 310.00 010 37050 FAMILY ASSIST.PROGRAM SUPPLIES/SPRING BASKET PROG. 1098.23 010 41100 5000 LODGING/4/3-6/23 CPRS CONFERENCE SAN DIEGO 142.06 010 42534 5000 VETERANS BRICKS
2846.44 010 41302 1012 SPECIAL EVENT EQUIPMENT 1268.72 010 37050 SPECIAL EVENT SUPPLIES,EQUIPMENT/STUDENT ART FEST. -16.49 010 41400 1012 REFUND: SPECIAL EVENT SUPPLIES 788.40 010 41400 1012 SPECIAL EVENT SUPPLIES,REFRESHMENTS 337.96 010 41100 1100 AIRFAIR/PS COMMITTEE HEARING SACRAMENTO 337.96 010 41100 1000 CSS AIRFAIR/PS COMMITTEE HEARING SACRAMENTO

25.00 010 41100 1000 CVS 05/02/23 CBWA MEMBERSHIP MEETING 281.50 010 41100 1000 04/10/23 CITY COUNCIL MEETING EXPENSE

25.00 010 41100 1000 CVS 04/20/23 EXEC.DIR.FAREWELL DINNER

25.00 010 41100 1000 CKD 04/20/23 EXEC.DIR.FAREWELL DINNER 333.90 010 41100 1100 LODGING DEPOSIT/8/30/23-9/1/23 CJPIA FORUM

25.00 010 41100 1000 CVS 05/02/23 CBWA MEMBERSHIP MEETING

25.00 010 41100 1000 CKD 05/02/23 CBWA MEMBERSHIP MEETING ------------
Vendor's Total = 30565.80
------------

....................................................................................................................................

VENDOR.: IMP05 (IMPACT OVERHEAD DOOR SERVICE, INC.)

REPORT.: 06/06/23 City of Bellflower PAGE: 018 RUN....: 06/06/23 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: INT15 (MIKE CABRERA CORPORATION)

....................................................................................................................................

VENDOR.: IRO02 (IRON MOUNTAIN RECORDS MANAGEMENT)

....................................................................................................................................

VENDOR.: IRS02 (INTERNAL REVENUE SERVICE)

....................................................................................................................................

VENDOR.: J&C01 (J&C AUTO & BODY REPAIR, INC.)

REPORT.: 06/06/23 City of Bellflower PAGE: 019 RUN....: 06/06/23 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: JHM01 (JHM SUPPLY, INC.)

....................................................................................................................................

VENDOR.: JIM06 (ROCIO JIMENEZ-SANCHEZ)

....................................................................................................................................

VENDOR.: JRU01 (J R UNIVERSAL CONSTRUCTION, INC)

....................................................................................................................................

VENDOR.: KIE03 (KIEFER AQUATICS)

REPORT.: 06/06/23 City of Bellflower PAGE: 020 RUN....: 06/06/23 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: KIE03 (KIEFER AQUATICS) ..Continue..

....................................................................................................................................

VENDOR.: KJS01 (KJ SERVICES ENVIRONMENTAL CONSULTING)

84.00 010 42346 3105 04/23 USED OIL RECYCLING PROGRAM ------------
Vendor's Total = 280.00
------------

....................................................................................................................................

VENDOR.: LOS01 (LOS ANGELES COUNTY SHERIFF'S DEPARTMENT)

REPORT.: 06/06/23 City of Bellflower PAGE: 021 RUN....: 06/06/23 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: LOS11 (COUNTY OF LOS ANGELES)

....................................................................................................................................

VENDOR.: LOS29 (LOS ANGELES COUNTY SAFER ESCROW ACCOUNT)

....................................................................................................................................

VENDOR.: MAL10 (MALMER STRAPPING CO.)

....................................................................................................................................

VENDOR.: MIL10 (ROSS A. MILLER DBA MILLER SOUND)

REPORT.: 06/06/23 City of Bellflower PAGE: 022 RUN....: 06/06/23 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: MUN15 (MUNISERVICES, LLC.)

....................................................................................................................................

VENDOR.: MYE08 (MY ENGINEERING, INC.)

....................................................................................................................................

VENDOR.: NOR18 (NORWALK LA MIRADA PLUMBING HEATING)

....................................................................................................................................

VENDOR.: NRG01 (JK & MD ENTERPRISE, INC.)

....................................................................................................................................

VENDOR.: OCE01 (OCEAN BLUE ENVIRONMENTAL SERVICES, INC.)

REPORT.: 06/06/23 City of Bellflower PAGE: 023 RUN....: 06/06/23 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: ONG01 (OSCAR NERI)

....................................................................................................................................

VENDOR.: PAC23 (PACIFIC PRODUCTION SERVICES, LLC.)

....................................................................................................................................

VENDOR.: PAR01 (LIBERTY UTILITIES/PARK WATER COMPANY)

....................................................................................................................................

VENDOR.: PERS0 (PUBLIC EMPLOYEES' RETIREMENT SYSTEM)

REPORT.: 06/06/23 City of Bellflower PAGE: 024 RUN....: 06/06/23 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: POO01 (JENNIFER POOLE-EIDD)

1.75 010 43100 4000 REIMBURSE CREDIT CARD FEE/RECORDING FEES (QTY 4) ------------
Vendor's Total = 216.75
------------

....................................................................................................................................

VENDOR.: RAY01 (RAYVERN LIGHTING SUPPLY COMPANY, INC)

....................................................................................................................................

VENDOR.: RED02 (RED DRAGON ELECTRIC, INC.)

....................................................................................................................................

VENDOR.: RIC03 (RICOH USA INC.)

50.63 010 43100 5000 04/23 RICOH COPIES/COLOR/SIMMS PARK

13.77 010 43100 3000 04/23 RICOH COPIES/B&W/PUBLIC WORKS

79.48 010 43100 3000 04/23 RICOH COPIES/COLOR/PUBLIC WORKS

REPORT.: 06/06/23 City of Bellflower PAGE: 025 RUN....: 06/06/23 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: RIC03 (RICOH USA INC.) ..Continue..

55.68 010 43100 2000 04/23 RICOH COPIES/B&W/PUBLIC SAFETY

39.87 010 43100 2000 04/23 RICOH COPIES/COLOR/PUBLIC SAFETY

16.49 010 43100 8000 04/23 RICOH COPIES/B&W/1ST FL/CITY HALL

86.62 010 43100 8000 04/23 RICOH COPIES/COLOR/1ST FL/CITY HALL ------------
Vendor's Total = 794.59
------------

....................................................................................................................................

VENDOR.: ROM02 (MARGARET ROMERO)

....................................................................................................................................

VENDOR.: SAF11 (SAFEbuilt,LLC)

....................................................................................................................................

VENDOR.: SCS02 (S.C. SIGNS & SUPPLIES LLC)

REPORT.: 06/06/23 City of Bellflower PAGE: 026 RUN....: 06/06/23 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: SCS02 (S.C. SIGNS & SUPPLIES LLC) ..Continue..

....................................................................................................................................

VENDOR.: SEQ04 (SEQUEL CONTRACTORS, INC.)

....................................................................................................................................

VENDOR.: SHE10 (GAIL P SHEPPARD-CAPRIETTA)

....................................................................................................................................

VENDOR.: SMA01 (SMART AND FINAL)

REPORT.: 06/06/23 City of Bellflower PAGE: 027 RUN....: 06/06/23 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: SMA03 (SMART & FINAL)

96.59 010 42015 1350 SUPPLIES,REFRESHMENTS/LUNCHEON ------------
Vendor's Total = 241.57
------------

....................................................................................................................................

VENDOR.: SMI20 (KRISTEN SMITH/PETTY CASH CUSTODIAN)

5.49 010 41400 1012 SPECIAL EVENT SUPPLIES

17.38 010 41100 5000 MEETING SUPPLIES/MASTER PLAN RFP INTERVIEW PANEL ------------
Vendor's Total = 472.87
------------

....................................................................................................................................

VENDOR.: SOU01 (SOUTHERN CALIFORNIA EDISON)

REPORT.: 06/06/23 City of Bellflower PAGE: 028 RUN....: 06/06/23 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: SOU03 (THE GAS COMPANY)

3.42 010 43211 2000 04/23 GAS
B230523H XXXXXX 05/23/23 37.14 010 43211 3100 04/23 GAS 449.26 010 43211 3900 04/23 GAS
373.36 010 43211 8000 04/23 GAS
230523ECFH XXXXXX 05/23/23 2089.35 010 43211 3900 ECF 04/23 GAS/THE MAYNE EVENTS CENTER B230526H XXXXXX 05/26/23 216.80 010 43211 8010 TSS 04/23 GAS ------------
Vendor's Total = 6052.23
------------

....................................................................................................................................

VENDOR.: SOU70 (SOUTHWEST PATROL, INC.)

....................................................................................................................................

VENDOR.: STA04 (STATE CONTROLLER'S OFFICE)

....................................................................................................................................

VENDOR.: STA15 (STATE OF CALIFORNIA)

REPORT.: 06/06/23 City of Bellflower PAGE: 029 RUN....: 06/06/23 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: STA54 (STAR PRODUCTS LLC)

....................................................................................................................................

VENDOR.: TAY01 (TAYLOR SECURITY SYSTEMS,INC.)

90.00 010 46029 3900 04/01/23-06/30/23 ALARM/CELLULAR MONITORING SVCS. 345.00 010 46030 3900 ECF 04/01/23-06/30/23 ALARM/CELLULAR MONITORING SVCS. 210.00 135 46000 3560 04/01/23-06/30/23 ALARM/CELLULAR MONITORING SVCS.

90.00 320 46000 6020 04/01/23-06/30/23 ALARM/CELLULAR MONITORING SVCS. 180.00 010 46000 8010 TSS 04/01/23-06/30/23 ALARM/CELLULAR MONITORING SVCS. ------------
Vendor's Total = 6140.05
------------

....................................................................................................................................

VENDOR.: TAY06 (TAYLOR'S LOCK & KEY)

REPORT.: 06/06/23 City of Bellflower PAGE: 030 RUN....: 06/06/23 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: THE36 (THERMAL CONCEPTS, INC.)

....................................................................................................................................

VENDOR.: TIM06 (CHARTER COMMUNICATIONS HOLDINGS, LLC)

....................................................................................................................................

VENDOR.: TIT01 (TITAN ENVIRONMENTAL SOLUTIONS, INC.)

....................................................................................................................................

VENDOR.: TPX01 (U.S. TELEPACIFIC CORPORATION)

REPORT.: 06/06/23 City of Bellflower PAGE: 031 RUN....: 06/06/23 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: TPX01 (U.S. TELEPACIFIC CORPORATION) ..Continue..

....................................................................................................................................

VENDOR.: TRA09 (JERRY TRAUTMAN)

....................................................................................................................................

VENDOR.: TRI08 (TRIPEPI, SMITH & ASSOCIATES)

....................................................................................................................................

VENDOR.: TUS01 (TUSTIN AWARDS, INC.)

REPORT.: 06/06/23 City of Bellflower PAGE: 032 RUN....: 06/06/23 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: ULI01 (ULINE )

....................................................................................................................................

VENDOR.: UND01 (UNDERGROUND SERVICE ALERT OF SOUTHERN CA)

....................................................................................................................................

VENDOR.: URB02 (URBAN RESTORATION GROUP US INC.)

....................................................................................................................................

VENDOR.: VER09 (VERIZON WIRELESS)

79.40 010 43300 3000 05/23 CELLULAR BROADBAND

79.40 010 43300 3100 05/23 CELLULAR BROADBAND

41.39 010 43300 3900 05/23 CELLULAR BROADBAND 124.17 010 43300 4000 05/23 CELLULAR BROADBAND

41.39 010 43300 4100 05/23 CELLULAR BROADBAND

REPORT.: 06/06/23 City of Bellflower PAGE: 033 RUN....: 06/06/23 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: VER09 (VERIZON WIRELESS) ..Continue..

47.88 900 43300 4150 05/23 CELLULAR BROADBAND

41.39 010 43300 1100 05/23 CELLULAR BROADBAND 159.54 010 43300 5000 05/23 CELLULAR BROADBAND

76.02 010 43300 5010 05/23 CELLULAR BROADBAND

38.01 010 43300 5011 05/23 CELLULAR BROADBAND

41.39 010 43300 5017 05/23 CELLULAR BROADBAND

38.03 320 43300 6022 05/23 CELLULAR BROADBAND

45.02 135 43300 3610 05/23 CELLULAR BROADBAND

41.39 900 43300 5022 05/23 CELLULAR BROADBAND ------------
Vendor's Total = 1421.94
------------

....................................................................................................................................

VENDOR.: VID03 (VIDIFLO, LLC)

....................................................................................................................................

VENDOR.: VIS01 (VISTA PAINT CORPORATION)

....................................................................................................................................

VENDOR.: VOY01 (VOYAGER FLEET SYSTEMS INC)

REPORT.: 06/06/23 City of Bellflower PAGE: 034 RUN....: 06/06/23 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: VOY01 (VOYAGER FLEET SYSTEMS INC) ..Continue..

....................................................................................................................................

VENDOR.: VOY02 (VOYA RETIREMENT INS & ANNUITY CO - 457)

....................................................................................................................................

VENDOR.: VOY03 (VOYA RETIREMENT INS & ANNUITY CO - 401a)

....................................................................................................................................

VENDOR.: VOY04 (VOYA RETIREMENT INS & ANNUITY - 457 ROTH)

....................................................................................................................................

VENDOR.: WAL08 (WALTERS WHOLESALE ELECTRIC COMPANY)

REPORT.: 06/06/23 City of Bellflower PAGE: 035 RUN....: 06/06/23 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: WEH01 (LARRY LEE WEHAGE)

....................................................................................................................................

VENDOR.: WES41 (WEST VALLEY INVESTMENT GROUP, INC.)

....................................................................................................................................

VENDOR.: WIL12 (LINDA WILLIAMS)

....................................................................................................................................

VENDOR.: WIL23 (ANIYAH WILLIAMS)

....................................................................................................................................

VENDOR.: YAT02 (VERONICA YATES)

REPORT.: 06/06/23 City of Bellflower PAGE: 036 RUN....: 06/06/23 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: YAT02 (VERONICA YATES) ..Continue..

43.36 010 41100 1000 05/02/23 SPECIAL CITY COUNCIL MEETING EXPENSE

25.00 010 43092 1350 FINGERPRINTS

54.57 010 42015 1350 EMPLOYEE RECOGNITION PLAQUE ------------
Vendor's Total = 196.03
------------

....................................................................................................................................

VENDOR.: ZAC00 (SHERRIE A. ZACHAU)

....................................................................................................................................

VENDOR.: ZUM01 (ZUMAR INDUSTRIES INC.)

....................................................................................................................................

VENDOR.: \AHU3 (BRIAN AHUMADA)

REPORT.: 06/06/23 City of Bellflower PAGE: 037 RUN....: 06/06/23 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: \AL60 (ANITA VALERIE ALATORRE)

....................................................................................................................................

VENDOR.: \AN35 (BELIA V. ANDALON)

....................................................................................................................................

VENDOR.: \ANG6 (SAL ANGUIANO)

....................................................................................................................................

VENDOR.: \BEL3 (BELLFLOWER TEACHERS ASSOCIATION)

....................................................................................................................................

VENDOR.: \BER3 (SHARNELLE BERKLEY)

REPORT.: 06/06/23 City of Bellflower PAGE: 038 RUN....: 06/06/23 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: \CR01 (AMY CRUZ)

24.00 542 36002 REFUND GP/ZONE UPD/CANCELED/10403 LOWEMONT/R#15136

8.00 540 36004 REFUND GIS FEE/CANCELED/10403 LOWEMONT/R#15136 15136u XXXXXX 06/05/23 -200.00 600 31600 Check Reversed -24.00 542 36002 Check Reversed
-8.00 540 36004 Check Reversed
------------
Vendor's Total = 0.00
------------

....................................................................................................................................

VENDOR.: \DAV7 (CIJI SHERI DAVIS)

....................................................................................................................................

VENDOR.: \GEU1 (GEURIN MOBILE HOME SERVICE, INC.)

....................................................................................................................................

VENDOR.: \GO95 (RICARDO GOMEZ)

REPORT.: 06/06/23 City of Bellflower PAGE: 039 RUN....: 06/06/23 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: \JAM2 (FIRAS JAMAL)

....................................................................................................................................

VENDOR.: \JEN0 (NYCHELLE JENKINS)

....................................................................................................................................

VENDOR.: \KAA1 (KA ART PROD LLC)

....................................................................................................................................

VENDOR.: \KAO1 (JADEN KAO)

....................................................................................................................................

VENDOR.: \KI28 (KINDER MORGAN)

REPORT.: 06/06/23 City of Bellflower PAGE: 040 RUN....: 06/06/23 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: \LEY4 (CLEMENTE FRAUSTO LEYVA)

....................................................................................................................................

VENDOR.: \LIE1 (LIEBERT CASSIDY WHITMORE)

....................................................................................................................................

VENDOR.: \LO10 (LAURO LOPEZ, JR.)

....................................................................................................................................

VENDOR.: \M192 (STEVEN ANTHONY MANRIQUEZ)

....................................................................................................................................

VENDOR.: \MIZ0 (GRACE MIZZI-RIEL)

REPORT.: 06/06/23 City of Bellflower PAGE: 041 RUN....: 06/06/23 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: \MOT4 (MOTION PICTURE LICENSING CORP. (MPLC))

....................................................................................................................................

VENDOR.: \MYE0 (GEORGE LARRY MYERS)

....................................................................................................................................

VENDOR.: \PAT1 (ASHISH PATEL)

....................................................................................................................................

VENDOR.: \POO5 (DELAURIA POOLE)

....................................................................................................................................

VENDOR.: \PTL0 (PTL GP, LLC)

REPORT.: 06/06/23 City of Bellflower PAGE: 042 RUN....: 06/06/23 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: \PTL0 (PTL GP, LLC) ..Continue..

....................................................................................................................................

VENDOR.: \RE55 (A. JAVIER REYES)

....................................................................................................................................

VENDOR.: \SAI0 (SAINT JOHN BOSCO HIGH SCHOOL)

....................................................................................................................................

VENDOR.: \SAN2 (JESUS SANCHEZ)

....................................................................................................................................

VENDOR.: \SOR1 (SOROPTOMIST INT'L OF BELLFLOWER)

REPORT.: 06/06/23 City of Bellflower PAGE: 043 RUN....: 06/06/23 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: \SOR1 (SOROPTOMIST INT'L OF BELLFLOWER) ..Continue..

25.00 010 41100 1000 CRD 05/22/23 SOROPTOMIST LUNCHEON AWARDS

25.00 010 41100 1000 CKD 05/22/23 SOROPTOMIST LUNCHEON AWARDS

25.00 010 41100 1000 CVS 05/22/23 SOROPTOMIST LUNCHEON AWARDS ------------
Vendor's Total = 860.00
------------

....................................................................................................................................

VENDOR.: \ST17 (APRIL STRONG)

....................................................................................................................................

VENDOR.: \TH61 (BILLY THOMAS)

....................................................................................................................................

VENDOR.: \WI84 (AMANDA M. WILLIAMS)

4.00 602 31654 REFUND AB 1379 BL#23208/PROP.USE DECLINED/R#26764 ------------
Vendor's Total = 283.00
------------

Report's Grand Total = 4095449.16
============

Page 1 of 2 ends

14-B
TO: Honorable Mayor and Members of the City Council
ATTENTION: Jeffrey L. Stewart, City Manager
FROM: Tae Rhee, Director of Finance/Treasurer
SUBJECT: Consideration and possible action to adopt Resolution No. 23-21 –A Resolution adopting the annual appropriations limit for fiscal year 2023-2024.

DATE: June 12, 2023

EXECUTIVE SUMMARY
In accordance with Article XIIIB of the California Constitution, the appropriations limit (also referred to as the "Gann limit") for fiscal year 2023-2024 has been calculated by applying inflation and population factors provided by the State Department of Finance.

RECOMMENDATION TO THE CITY COUNCIL
1)Adopt Resolution No. 23-21; or
2)Alternatively, discuss and take other action related to this item.

FISCAL IMPACT
None.

BACKGROUND
On November 6, 1979, California voters approved the Gann Spending Limitation Initiative (Proposition 4) establishing Article XIIIB of the State Constitution. Subsequently, on June 5, 1990, California voters approved the Traffic Congestion Relief and Spending Limitation Act (Proposition 111), which made various amendments to Article XIIIB of the State Constitution. Article XIIIB sets limits on the amount of tax revenues that the State and most local governments can appropriate within a given fiscal year. - 1 -

Staff Report – Appropriations Limit for Fiscal Year 2023-2024 June 12, 2023

Page 2 of 2 ends

BACKGROUND – Continued

INFLATION FACTOR (selected higher of the following):

Change in the California
per capita personal income

4.44%

State
Department of
Finance
Selected for
calculation
Growth in the
nonresidential assessed
valuation due to new
construction within the City

0.17%

HdL Coren &
Cone
POPULATION FACTOR (selected higher of the following):

City of Bellflower
-0.56%
(population as of
1/1/23 of 76,924 vs.
1/1/22 of 77,359)
State
Department of
Finance
Selected for
calculation
Los Angeles County
-1.02%
(population as of
1/1/23 of 9,753,247
vs. 1/1/22 of
9,853,284)
State
Department of
Finance

The appropriations limit for fiscal year 2023-2024 is $98,206,241, an increase of $3,645,447 from the preceding fiscal year (Exhibit A). This new limit has been calculated by adjusting the fiscal year 2022-2023 appropriations limit for the changes in the California per capita personal income and the City’s population. Based on the Operating Budget, the appropriations that are subject to this limit total $27,598,242 (Exhibit B). Due to the fact that the annual appropriations limit is greater than the appropriations that are subject to the limit, the City is in compliance with the provisions of Article XIIIB of the California Constitution. The City’s calculation of the annual appropriations limit must also be reviewed by the auditors as part of the standard annual financial audit.

ATTACHMENTS

Resolution No. 23-21....................................................................................................... 3 Exhibit A, Annual Appropriations Limit Calculation .......................................................... 5 Exhibit B, Appropriations Subject to the Annual Limit...................................................... 6 State Department of Finance Letter, Dated May 2023 .................................................... 7 HdL’s Nonresidential New Construction Factor ............................................................. 12

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Page 1 of 2 ends

CITY OF BELLFLOWER
RESOLUTION NO. 23-21 A RESOLUTION ADOPTING THE ANNUAL APPROPRIATIONS LIMIT FOR FISCAL YEAR 2023-2024

THE CITY COUNCIL RESOLVES AS FOLLOWS:

SECTION 1. The City Council finds and declares as follows:

A. The City Council may choose the method of calculating adjustments to the City’s Appropriations Limit on an annual basis pursuant to Article XIIIB of the California Constitution. For inflation, pursuant to Article XIIIB, § 8(e)(2), adjustments to the Appropriations Limit may be calculated using either the percentage change in per capita personal income from the preceding year or the percentage change in the local assessment roll from the preceding year because of local nonresidential new construction. For population growth, pursuant to Government Code § 7901(b), the City may either use the percentage growth either in its jurisdiction or from the surrounding county;

B. Pursuant to Article XIIIB of the California Constitution, and those Government Code sections adopted pursuant to Article XIIIB, § 8(f), the City Council chooses to adjust the City’s Appropriations Limit by calculating inflation using the percentage change in the California per capita personal income from the preceding year and calculating population growth by using the percentage change in the City of Bellflower population;

C. The information necessary for making these adjustments is illustrated in attached Exhibits A and B, which are incorporated by reference; and

D. The City of Bellflower has complied with all the provisions of the amended Article XlIIB in determining the appropriations limit for fiscal year 2023-2024.

SECTION 2. The appropriations limit for fiscal year 2023-2024 for the City of Bellflower is established at $98,206,241.

SECTION 3. The appropriations subject to the annual limit as contained in the Operating Budget for fiscal year 2023-2024 are $27,598,242.

SECTION 4. This Resolution does not affect any penalty, forfeiture, or liability incurred before, or preclude prosecution and imposition of penalties for any violation occurring before, this Resolution’s effective date. Any such amended part will remain in full force and effect for sustaining action or prosecuting violations occurring before the effective date of this Resolution.

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City of Bellflower
Resolution No. 23-21

Page 2 of 2 ends

SECTION 5. If any part of this Resolution or its application is deemed invalid by a court of competent jurisdiction, the City Council intends that such invalidity will not affect the effectiveness of the remaining provisions or applications and, to this end, the provisions of this Resolution are severable.

SECTION 6. Electronic Signatures. This Resolution may be executed with electronic signatures in accordance with Government Code §16.5. Such electronic signatures will be treated in all respects as having the same effect as an original signature.

SECTION 7. The Mayor, or presiding officer, is authorized to affix a signature to this Resolution signifying its adoption by the City Council of the City of Bellflower and the City Clerk, or her duly appointed deputy, is directed to attest thereto.

SECTION 8. This Resolution will become effective immediately upon adoption.

PASSED, APPROVED, AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF BELLFLOWER ON THIS 12TH DAY OF JUNE 2023.

________________________________ Sonny Santa Ines, Mayor

ATTEST:

________________________________
Mayra Ochiqui, City Clerk

APPROVED AS TO FORM:

________________________________
Karl H. Berger, City Attorney

ATTACHMENTS:

Exhibit A – Annual Appropriations Limit Calculation
Exhibit B – Appropriations Subject to the Annual Limit

- 4 -

EXHIBIT A
(Resolution No. 23-21)

CITY OF BELLFLOWER

ANNUAL APPROPRIATIONS LIMIT CALCULATION
FOR FISCAL YEAR 2023-2024
Appropriations limit for fiscal year 2022-2023:94,560,794$ Adjustment factors for fiscal year 2023-2024:

Inflation Population
Factor Factor Combined
(Note 1)(Note 2)Factor

1.0444 0.9944 1.03855136 x 0.03855136
Adjustment for inflation and population 3,645,447
Appropriations limit for fiscal year 2023-2024:98,206,241$ Notes:

1.INFLATION FACTOR:

2.POPULATION FACTOR:

The City may adjust its appropriations limit by either the annual percentage change in per capita personal income provided by the State Department of Finance, or the percentage change in local assessment roll from the preceding year due to the addition of local nonresidential construction.The above factor represents the annual percentage change in the California per capita personal income provided by the State Department of Finance.

The City may adjust its appropriations limit by either the percentage change in the City's own population growth, or the percentage change in the population growth for Los Angeles County.The above factor represents the annual percentage change in population for the City of Bellflower.

S:\AA\Staff Reports\SR 2023-24\Appropriations (GANN) Limit FY 23-24\Approved\ Appropriations (Gann) Limit FY 2023-24 - Exhibits A & B - 5 -

EXHIBIT B
(Resolution No. 23-21)

CITY OF BELLFLOWER

APPROPRIATIONS SUBJECT TO THE ANNUAL LIMIT
FOR FISCAL YEAR 2023-2024
A.PROCEEDS OF TAXES
Property tax 4,504,000$
Property tax in lieu of vehicle license fees 10,458,000 Utility users tax 3,600,000
Cannabis business tax 3,500,000
Sales tax 8,900,000
Transactions and use tax 6,800,000
Real property transfer tax 150,000
Transient occupancy tax 1,090,000
Business license tax 840,000
Motor vehicle license fees 70,000
TOTAL PROCEEDS OF TAXES 39,912,000$
B.EXCLUSIONS:

Qualified Capital Outlay (12,873,449)
Annual Debt Service (230,501)
TOTAL EXCLUSIONS (13,103,950)
C.NET INVESTED PROCEEDS OF TAXES 26,808,050
D.INTEREST ALLOCATION 790,192
E.APPROPRIATIONS SUBJECT TO THE LIMIT 27,598,242$
F.APPROPRIATIONS LIMIT FOR 2023-2024 (Exhibit A)98,206,241$ G.DIFFERENCE (ITEM F MINUS ITEM E)70,607,999$
CONCLUSION:

The City is in compliance with the provisions of Article XIIIB of the California Constitution as the Annual Appropriations Limit (Item F)is greater than the Appropriations Subject to the Limit (Item E).

S:\AA\Staff Reports\SR 2023-24\Appropriations (GANN) Limit FY 23-24\Approved\ Appropriations (Gann) Limit FY 2023-24 - Exhibits A & B - 6 -

May 2023
Dear Fiscal Officer:

Subject: Price Factor and Population Information
Appropriations Limit
California Revenue and Taxation Code section 2227 requires the Department of Finance (Finance) to transmit an estimate of the percentage change in population to local governments. Each local jurisdiction must use their percentage change in population factor for January 1, 2023, in conjunction with a change in the cost of living, or price factor, to calculate their appropriations limit for fiscal year 2023-24. Attachment A provides the change in California’s per capita personal income and an example for utilizing the price factor and population percentage change factor to calculate the 2023-24 appropriations limit. Attachment B provides the city and unincorporated county population percentage change. Attachment C provides the population percentage change for counties and their summed incorporated areas. The population percentage change data excludes federal and state institutionalized populations and military populations.

Population Percent Change for Special Districts
Some special districts must establish an annual appropriations limit. California Revenue and Taxation Code section 2228 provides additional information regarding the appropriations limit.

Article XIII B, section 9(C) of the California Constitution exempts certain special districts from the appropriations limit calculation mandate. The code section and the California Constitution can be accessed at the following website: http://leginfo.legislature.ca.gov/faces/codes.xhtml .

Special districts required by law to calculate their appropriations limit must present the calculation as part of their annual audit. Any questions special districts have on this requirement should be directed to their county, district legal counsel, or the law itself. No state agency reviews the local appropriations limits.

Population Certification
The population certification program applies only to cities and counties. California Revenue and Taxation Code section 11005.6 mandates Finance to automatically certify any population estimate that exceeds the current certified population with the State Controller’s Office. Finance will certify the higher estimate to the State Controller by June 1, 2023.

Please Note: The prior year’s city population estimates may be revised. The per capita personal income change is based on historical data.

If you have any questions regarding this data, please contact the Demographic Research Unit at (916) 323-4086.

JOE SPEPHENSHAW
Director
By:

Erika Li
Chief Deputy Director
Attachment
- 7 -

May 2023
Attachment A
A. Price Factor: Article XIII B specifies that local jurisdictions select their cost of living factor to compute their appropriation limit by a vote of their governing body. The cost of living factor provided here is per capita personal income. If the percentage change in per capita personal income is selected, the percentage change to be used in setting the fiscal year 2023-24 appropriation limit is:

Per Capita Personal Income
Fiscal Year Percentage change
(FY) over prior year
2023-24 4.44
B. Following is an example using sample population change and the change in California per capita personal income as growth factors in computing a 2023-24 appropriation limit.
2023-24:

Per Capita Cost of Living Change = 4.44 percent
Population Change = -0.35 percent
Per Capita Cost of Living converted to a ratio: 4.44 + 100 = 1.0444 100
Population converted to a ratio: -0.35 + 100 = 0.9965
100
Calculation of factor for FY 2023-24: 1.0444 x 0.9965 = 1.0407 - 8 -

Fiscal Year 2023-24
Attachment B
Annual Percent Change in Population Minus Exclusions*
January 1, 2022 to January 1, 2023 and Total Population, January 1, 2023 Total
County Percent Change ---Population Minus Exclusions ---Population City 2022-2023 1-1-22 1-1-23 1-1-2023
Los Angeles
Agoura Hills -0.03 19,776 19,770 19,770
Alhambra -0.37 81,609 81,303 81,303
Arcadia -0.74 55,918 55,503 55,503
Artesia -0.82 16,139 16,007 16,093
Avalon -1.03 3,386 3,351 3,351
Azusa 0.06 49,453 49,483 49,483
Baldwin Park -0.63 70,815 70,368 70,368
Bell -0.72 33,612 33,370 33,370
Bellflower -0.92 77,638 76,924 76,924
Bell Gardens -0.84 38,774 38,447 38,447
Beverly Hills -0.90 31,945 31,658 31,658
Bradbury 0.34 886 889 889
Burbank -0.42 104,976 104,535 104,535
Calabasas -0.99 23,037 22,808 22,808
Carson -0.60 92,746 92,186 92,186
Cerritos -1.06 48,402 47,887 47,887
Claremont -0.74 37,034 36,759 36,759
Commerce -1.04 12,163 12,036 12,036
Compton -0.61 94,294 93,719 93,719
Covina -0.67 50,690 50,350 50,350
Cudahy -0.52 22,386 22,270 22,270
Culver City -0.73 39,972 39,682 39,682
Diamond Bar -1.03 53,935 53,381 53,381
Downey -0.73 112,078 111,261 111,261
Duarte 6.60 21,384 22,796 22,796
El Monte -0.84 107,279 106,377 106,377
El Segundo -0.67 17,042 16,928 16,928
Gardena -0.47 60,090 59,809 59,809
Glendale -0.82 192,870 191,284 191,284
Glendora -0.80 51,571 51,159 51,159
Hawaiian Gardens -0.94 13,675 13,546 13,546
Hawthorne -0.96 86,535 85,702 85,702
Hermosa Beach -0.98 19,206 19,018 19,018
Hidden Hills -0.80 1,745 1,731 1,731
Huntington Park -0.93 53,783 53,281 53,281
Industry -0.23 428 427 427
Inglewood -0.64 106,928 106,248 106,248
Irwindale -0.87 1,496 1,483 1,483
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes. - 9 -

Fiscal Year 2023-24
Attachment B
Annual Percent Change in Population Minus Exclusions*
January 1, 2022 to January 1, 2023 and Total Population, January 1, 2023 Total
County Percent Change ---Population Minus Exclusions ---Population City 2022-2023 1-1-22 1-1-23 1-1-2023
La Canada Flintridge -0.65 20,060 19,930 19,930
La Habra Heights -1.06 5,564 5,505 5,505
Lakewood -0.92 80,900 80,154 80,154
La Mirada -1.00 48,384 47,899 47,899
Lancaster -0.54 170,660 169,742 173,376
La Puente -0.63 37,594 37,356 37,356
La Verne -0.89 32,344 32,056 32,056
Lawndale -0.93 31,171 30,882 30,882
Lomita -1.02 20,300 20,092 20,092
Long Beach -0.44 460,199 458,168 458,222
Los Angeles -0.97 3,800,240 3,763,328 3,766,109
Lynwood -0.55 66,595 66,228 66,228
Malibu -0.21 10,534 10,512 10,512
Manhattan Beach -1.24 34,713 34,284 34,284
Maywood -0.94 24,779 24,546 24,546
Monrovia -0.62 37,772 37,539 37,539
Montebello -0.26 61,804 61,645 61,645
Monterey Park -0.90 59,824 59,288 59,288
Norwalk -0.71 101,116 100,399 101,153
Palmdale -0.66 167,015 165,917 165,917
Palos Verdes Estates -0.90 13,052 12,935 12,935
Paramount -0.72 52,557 52,178 52,178
Pasadena -0.60 137,814 136,988 136,988
Pico Rivera -0.77 61,446 60,975 60,975
Pomona -0.12 149,908 149,721 149,721
Rancho Palos Verdes -1.02 41,434 41,013 41,030
Redondo Beach -0.97 69,078 68,407 68,407
Rolling Hills -1.13 1,688 1,669 1,669
Rolling Hills Estates -0.40 8,480 8,446 8,446
Rosemead -0.17 50,109 50,022 50,022
San Dimas -0.95 34,407 34,079 34,079
San Fernando -0.20 23,533 23,487 23,487
San Gabriel -0.58 38,690 38,466 38,466
San Marino -0.62 12,282 12,206 12,206
Santa Clarita 0.71 229,039 230,659 230,659
Santa Fe Springs -0.88 18,689 18,525 18,570
Santa Monica -0.02 91,739 91,720 91,720
Sierra Madre -0.81 10,909 10,821 10,821
Signal Hill -0.84 11,528 11,431 11,431
South El Monte -0.85 19,627 19,461 19,461
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes. - 10 -

Fiscal Year 2023-24
Attachment B
Annual Percent Change in Population Minus Exclusions*
January 1, 2022 to January 1, 2023 and Total Population, January 1, 2023 County
City
Percent Change
2022-2023
---Population Minus Exclusions ---
1-1-22 1-1-23
Total
Population
1-1-2023
South Gate
South Pasadena
Temple City
Torrance
Vernon
-0.78
-0.59
-0.55
-0.88
-0.97
93,355
26,428
36,010
144,327
207
92,628
26,273
35,813
143,057
205
92,628
26,273
35,813
143,057
205
Walnut
West Covina
West Hollywood
Westlake Village
Whittier
Unincorporated
-0.61

0.23 -0.39
-1.12
-0.47
-0.95
27,721
107,642
34,930
8,009
87,707
1,006,954
27,553
107,893
34,793
7,919
87,291
997,407
27,553
107,893
34,793
7,919
87,291
997,999
County Total -0.75 9,826,563 9,753,247 9,761,210
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes. - 11 -

NONRESIDENTIAL NEW CONSTRUCTION

THE CITY OF BELLFLOWER
2021/22 TO 2022/23 TAX YEARS - IN PARCEL NUMBER ORDER
Current Year
Improvements
Prior Year
ImprovementsUse CategoryParcel Owner
Percent
Change
7107-015-018 Commercial 78,457 216,240Rodriguez Homero G Cotrustee Rodriguez Trust + 175.6% 7109-008-003 Industrial 170,665 185,501De Vries David Trust Virgil D De Vries Deceased Trust + 8.7% 7109-010-011 Commercial 265,516 459,000Patino Rafael + 72.9% 7110-013-019 Commercial 353,367 401,920Phoropter Property Llc + 13.7% 7161-007-053 Commercial 103,056 250,000J Chase Foundation Business Trust + 142.6% 7161-008-022 Commercial 325,865 402,951All That You Cant Leave Behind Lp + 23.7% 7161-010-015 Commercial 56,042 122,400Johnston Gary Trust Wilson Family Trust + 118.4% 7 Parcels Listed 1,352,968 2,038,012 + 50.6%
This calculation reflects the 2022/23 increase in taxable values for this city due to non-residential new construction as a percentage of the total taxable value Increase (as of the 2022/23 lien year roll date). This percentage may be used as an alternative to the change in California per-capita personal income for calculating a taxing agency's annual adjustment of its Appropriation Limit pursuant to Article XIIIB of the State Constitution as Amended by Proposition 111 in June, 1990.
685,044
-27,059
657,985
386,495,379

0.17%
Total Change in Non-Residential Valuation Due to New Development Less Automatic 2.000% Assessors's Inflation Adjustment
Actual Change in Non-Residential Valuation
Change in Total Assessed Value
= Alternate 2023/24 Appropriations Limit Factor
Includes taxable primary parcels with known nonresidential use codes, no prior lien year transfers, and improvement value increases greater than 2.0% Change in Total Assessed Value is the assessed value change of the locally assessed secured and unsecured 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 Prepared On 12/6/2022 By DS Data Source: Los Angeles County Assessor 2022/23 Secured Tax Rolls

Page 30 ends

Page 1 of 2 ends

14-C

TO: Honorable Mayor and Members of the City Council

ATTENTION: Jeffrey L. Stewart, City Manager

FROM: Tae Rhee, Director of Finance/City Treasurer

SUBJECT: Consideration and possible action to adopt Resolution No. 23-22 – A Resolution adopting the Operating Budget for fiscal years 2023-2025 including the Capital Improvement Budget.

DATE: June 12, 2023

EXECUTIVE SUMMARY

The City Council held two Study Sessions on April 25 and May 2, 2023, to review the Proposed Fiscal Year 2023-2025 Operating Budget. The Proposed Budget currently presented for adoption includes all the adjustments that were discussed for incorporation by the City Council at the Study Session on May 2, 2023. Furthermore, the Proposed Budget includes following subsequent changes staff proposes:

 Provision of $20,000 budget for concept designs and construction cost estimate for Space Force addition to Veterans Memorial.

 Revisions to the budget for SEAACA’s animal control and sheltering services based on the proposed FY 2023-24 agreement received from SEAACA on June 5, 2023.

FY 2023-24 budget matches the proposed contract amount of $601,223 (net of the guaranteed animal license fees of $138,000) and FY 2024-25 budget is adjusted to $631,000.

 Revisions to the capital projects budget pursuant to a separate proposed Resolution No. 23-24 – A Resolution establishing the Capital Improvement Projects Budget for Fiscal Year 2023–2024 funded by Senate Bill 1: Road Repair and Accountability Act of 2017.

The Budget, Financial, Debt and Administrative Policies and Investment Policy are also made part of the biennial Budget Resolution as attachments, and the changes include:
1) increase in the General Fund Contingency Reserve to $10 million, and 2) establishment of the General Fund Property Acquisition Reserve in the amount of $5 million (including existing properties held for development/resale).

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Staff Report – Adopt 2023-2025 Operating Budget and Policies June 12, 2023

Page 2 of 2 ends

RECOMMENDATION TO CITY COUNCIL

1) Adopt Resolution No. 23-22; or

2) Alternatively, discuss and take other action related to this item.

FISCAL IMPACT

The total City appropriations, excluding transfers, are $117.4 million and $78.2 million for fiscal years 2023-2024 and 2024-2025, respectively. The total General Fund appropriations including transfers are $44.6 million and $46.1 million. The CIP appropriations are $58.3 million and $21.5 million. The Successor Agency administrative cost appropriations are $30,000 annually.

ATTACHMENTS

Resolution No. 23-22 ..................................................................................................... 3 Budget, Financial, Debt and Administrative Policies ................................................. 7 Debt Management Policy ........................................................................................ 18 Investment Policy .................................................................................................... 35 Proposed Fiscal Year 2023-2025 Operating Budget ............................... Separate Binder - 2 -

Page 1 of 4 ends

CITY OF BELLFLOWER

RESOLUTION NO. 23-22

A RESOLUTION ADOPTING THE OPERATING BUDGET
FOR FISCAL YEARS 2023-2025 INCLUDING THE

CAPITAL IMPROVEMENT BUDGET

THE CITY COUNCIL OF THE CITY OF BELLFLOWER, AND THE CITY

COUNCIL ACTING ON BEHALF OF THE SUCCESSOR AGENCY TO THE

DISSOLVED BELLFLOWER REDEVELOPMENT AGENCY (COLLECTIVELY REFERRED TO AS THE “CITY”), DOES RESOLVE AS FOLLOWS:

SECTION 1. The City Council finds and declares as follows:

A. At the public study sessions on April 25 and May 2, 2023, the City Council reviewed the proposed Operating Budget (“Budget”) and Capital Improvement Plan (“CIP”) for the City for fiscal years 2023-2025;

B. The Budget and CIP are based on appropriate estimates and financial planning for the City’s operations, services, and capital improvements;

C. The City Council considered the City’s current and projected finances, revenues, resources, and obligations; and

D. It is in the public interest for the City Council to adopt the Budget and CIP as proposed by the City Manager together with the Budget, Financial, Debt, and Administrative Policies and Investment Policy (“Policies”).

SECTION 2. PLANNING AGENCY. Pursuant to Bellflower Municipal Code (“BMC”) § 2.32.050(F), the City Council will act as the Bellflower Planning Agency for purposes of this Resolution. In accordance with Government Code § 65401, the Bellflower Public Works Department prepared and submitted a capital improvement plan (“CIP”) to the Planning Agency. Government Code § 65103(c) requires the Planning Agency to annually review the City’s CIP to determine whether the CIP is consistent with the Bellflower General Plan. The City Council finds that the CIP is consistent with the Bellflower General Plan.

SECTION 3. ADOPTION. The Budget, CIP, and Policies attached to this Resolution are incorporated by reference, approved, and adopted.

SECTION 4. BUDGET APPROPRIATIONS. The total City appropriations, excluding transfers, are $117.4 million and $78.2 million for fiscal years 2023-2024 and 2024-2025, respectively. The total General Fund appropriations including transfers are $44.6 million and $46.1 million. The CIP appropriations are $58.3 million and $21.5 million. The Successor Agency administrative cost appropriations are $30,000 annually. The City Manager, or designee, is authorized to implement and control the appropriations for City Departments.
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City of Bellflower
Resolution No. 23-22

Page 2 of 4 ends

SECTION 5. REAPPROPRIATION. The City Manager, or designee, is authorized to reappropriate any unused appropriations for capital projects, special projects, grant programs, and contractual obligations at the close of a fiscal year to a subsequent fiscal year for the Budget and CIP and adjust that fiscal year‘s special and grant revenues and transfers accordingly.

SECTION 6. BUDGET ADJUSTMENTS. The Budget may be subsequently adjusted as follows:

A. By majority vote of the City Council; or

B. By the City Manager, or designee, pursuant to the attached Policies.

SECTION 7. PENSION STABILIZATION TRUST FUND. Pursuant to Resolution No. 21-25, the following annual amounts from the General Fund will be deposited into the Pension Stabilization Trust Fund (IRC Section 115 Trust) to help with the management pension costs in the future. The City’s deposits into the Trust Fund will cease when the Fund balance reaches 15% of the Entry Age Normal Accrued Liability and resume when the balance falls below the 15% cap.

FY Ending
Savings from
Pension
Obligation Bonds
Successor
Agency Loan
Repayments
Total Deposits to
the Trust Fund
6/30/2022 0 500,000 500,000
6/30/2023 35,292 500,000 535,292
6/30/2024 114,093 500,000 614,093
6/30/2025 202,679 500,000 702,679
6/30/2026 260,742 500,000 760,742
6/30/2027 312,226 500,000 812,226
6/30/2028 345,058 500,000 845,058
6/30/2029 375,906 500,000 875,906
6/30/2030 409,151 500,000 909,151
6/30/2031 445,228 500,000 945,228
6/30/2032 478,850 0 478,850
6/30/2033 461,005 0 461,005
6/30/2034 442,869 0 442,869
6/30/2035 398,013 0 398,013
6/30/2036 327,067 0 327,067
6/30/2037 200,118 0 200,118
Total 4,808,297 5,000,000 9,808,297

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City of Bellflower
Resolution No. 23-22

Page 3 of 4 ends

SECTION 8. CONTRACTING AUTHORITY.

A. The City Manager, or designee, is authorized to bid and/or award contracts for the equipment, supplies, and services approved in the Budget in accordance with the BMC.

B. In accordance with the BMC, the City Manager, or designee, is authorized to execute all contracts awarded for equipment, supplies, and services approved in the Budget.

C. For all other services, equipment, and supplies, the City Manager, or designee, is authorized to execute contracts in accordance with the BMC.

SECTION 9. INVESTMENTS. Government Code § 53607 allows the City Council to delegate investment authority to the City Treasurer, who may then designate persons to implement such authority. The City Council delegates the investment authority to the City Treasurer who is authorized to implement the Investment Policy on the City's behalf.

SECTION 10. This Resolution does not affect any penalty, forfeiture, or liability incurred before, or preclude prosecution and imposition of penalties for any violation occurring before, this Resolution’s effective date. Any such amended part will remain in full force and effect for sustaining action or prosecuting violations occurring before the effective date of this Resolution.

SECTION 11. If any part of this Resolution or its application is deemed invalid by a court of competent jurisdiction, the City Council intends that such invalidity will not affect the effectiveness of the remaining provisions or applications and, to this end, the provisions of this Resolution are severable.

SECTION 12. Electronic Signatures. This Resolution may be executed with electronic signatures in accordance with Government Code §16.5. Such electronic signatures will be treated in all respects as having the same effect as an original signature.

SECTION 13. The Mayor, or presiding officer, is authorized to affix a signature to this Resolution signifying its adoption by the City Council of the City of Bellflower and the City Clerk, or her duly appointed deputy, is directed to attest thereto.

SECTION 14. This Resolution will become effective immediately upon adoption.

///
///
///
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City of Bellflower
Resolution No. 23-22

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PASSED, APPROVED, AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF BELLFLOWER ON THIS 12TH DAY OF JUNE 2023.

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Sonny R. Santa Ines, Mayor

ATTEST:

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Mayra Ochiqui, City Clerk

APPROVED AS TO FORM:

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Karl H. Berger, City Attorney

Attachments: Budget, Financial, Debt, and Administrative Policies Debt Management Policy
Investment Policy
Operating Budget for Fiscal Years 2023-2025

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CITY OF BELLFLOWER

BUDGET, FINANCIAL, DEBT, AND ADMINISTRATIVE POLICIES

(Refer Resolution No. 23-22)

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I. Fund Balance and Reserve Policy

Generally, the Fund Balance is an accumulation of prior year and current year net resources (revenues in excess of expenditures). This commonly occurs as a result of conservatively estimating revenues and the application of sound budgetary controls. Pursuant to the Governmental Accounting Standards Board Statement No. 54 (GASB 54), the Fund Balance can be divided into the following five categories:

• Nonspendable Fund Balance includes amounts not in spendable form (e.g., prepaid expenditures, inventories, and long-term loans/notes receivable) or amounts required to be maintained intact legally or contractually (e.g., corpus or principal of a permanent fund).

• Restricted Fund Balance includes amounts constrained for specific purposes by external parties, constitutional provision, or enabling legislation (e.g., debt service, state and federal grants, propositions, redevelopment, low-income housing).

• Committed Fund Balance includes amounts constrained for specific purposes by formal action of the City Council (e.g., major maintenance, capital replacement reserve, land acquisition). Such constraints can only be removed or changed by taking the same type of action employed to commit those amounts (e.g., resolution, ordinance).
 In the General Fund, the City maintains a Property Acquisition Reserve in the amount of $5 million. This committed reserve can only be used for acquiring properties as authorized by the City Council.  The total fund balance of the General Projects Fund is committed for capital projects as authorized by the City Council.
 The total fund balance of the Public Projects Fund is committed for economic development and parks projects and property acquisition as authorized by the City Council.
 The total fund balance of the Economic Development Fund is committed for the capital and economic development projects and programs as authorized by the City Council.

• Assigned Fund Balance includes amounts constrained by the City‘s intent to be used for a specific purpose (neither restricted nor committed) expressed by the City Council or by an official who has been delegated the authority to assign amounts. When the City Council or authorized official formally - 7 -

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restricts or commits to that intent, the City Manager is delegated authority to assign all or portion of this fund balance accordingly.  In the General Fund, the City maintains a Contingency Reserve (assigned fund balance) in the amount of $10 million. This reserve can only be used to meet cash flow needs and unforeseen contingencies such as emergencies, revenue shortfalls, mandates, or unanticipated inflation. It is not intended for routine capital projects or general operations.

• Unassigned Fund Balance consists of excess funds that have not been classified in the previous four categories. All funds in this category are considered spendable resources.

Reserves are in place to help protect against the need to reduce service levels or raise fees, rates, and other revenues due to temporary revenue shortfalls or unanticipated one-time expenditures.

In circumstances where an expenditure is to be made for a purpose for which amounts are available in multiple fund balance categories, the order in which resources will be expended is as follows: restricted fund balance, followed by committed fund balance, assigned fund balance, and lastly, unassigned fund balance.

II. Balanced Budget Policy

The City will adopt a balanced budget. The General Fund’s budget is considered balanced when the budget year appropriation total (including transfers out) for the General Fund does not exceed the sum of the budget year estimated revenues (including transfers in) and the Unassigned Fund Balance. For other Funds, a budget is considered balanced when the budget year appropriation total (including transfers out) for a Fund does not exceed the sum of the Fund’s budget year estimated revenues (including transfers in) and any available Fund Balance other than the Nonspendable Fund Balance.

Since a Fund Balance is not a revenue stream which the City can rely on to fund ongoing operational costs, it will only be used to fund non-recurring Council- approved expenditures, such as capital outlay, non-recurring operating costs, and contract services, emergency services, and other non-recurring services and costs.

Clear communication must be provided to the City Council when deviation from a balanced budget is planned or occurs. There may be circumstances in which noncompliance with the balanced budget policy is permitted, such as the early stages of an economic downturn so services can be reduced in an orderly fashion. A loan from the General Fund to another Fund may be an indication the - 8 -

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borrowing Fund is out of balance. The inter-fund loan repayment generally depends on the borrowing Fund’s ability to pay with future resources.

III. Budget Amendment Policy

The City’s Operating Budget will be adopted biennially by resolution. The City Council may approve subsequent budget amendments by resolution, minute action, staff report, or any other written order. The City Manager may also approve budget amendments within limitations prescribed below.

The City Manager is responsible to the City Council for the faithful implementation of the City Budget. In order for the authorized expenditures to be managed in the most efficient and economical manner possible, the City Council authorizes the City Manager to increase or transfer appropriations within the General Fund, or any other unrestricted Fund, subject to the following restrictions.

The monetary thresholds in this Section will be increased annually on July 1st based on the May Consumer Price Index in one-thousand dollar increments.

A. Increases in Appropriations – If a Fund has an available Fund Balance during the fiscal year, then the City Manager may approve requests for budget increases without City Council approval for:

1. Salaries/benefits, operation/maintenance, and capital outlay costs not exceeding $26,000 (as of July 1, 2022; adjusted for annual CPI) in any single transaction up to a fiscal year maximum of $128,000 (as of July 1, 2022; adjusted for annual CPI) or 1% of the total budget for the Fund, whichever is greater.

2. Previously Council-approved capital projects not exceeding 10% of the budgeted project cost or $43,000 (as of July 1, 2022; adjusted for annual CPI), whichever is greater, but in no case exceeding $85,000 (as of July 1, 2022; adjusted for annual CPI) without City Council approval.

3. Uncompleted capital projects carried over from the previous budget year.

4. Council-approved programs and activities. During the fiscal year, the Council may modify existing programs or implement new activities that may later require budget amendments. In such occasions when the Council approves a project without amending the budget, that approval will constitute authority for the City - 9 -

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Manager to amend the budget (subject to the Reporting
Requirements below).

B. Budget Transfers – The City Manager may transfer appropriations between line items within a department or between departments within a Fund, without Council approval, subject to the limitations described below.

However, such limitations do not apply to a mere substitution of funding sources from the General Fund to a Special Revenue or Grant Fund, from one Special Revenue or Grant Fund to another Special Revenue or Grant Fund, or other realignments in compliance with granting or statutory requirements.

1. For salaries/benefits and operation/maintenance costs, the budget transfer cannot exceed the same threshold as set forth in Subsection III.A.1.

2. For capital outlay/grant programs, the budget transfer cannot exceed the same threshold as set forth in Subsection III.A.2.

However, the 10% limit applies to the budgeted cost of the augmenting activity.

Budget transfers can only be made within a Classification of expenditures.

The approved three major Classifications of expenditures are Salaries and Benefits, Operation and Maintenance, and Capital Outlay/Grant Programs.

However, in the event a temporary vacancy exists in a budgeted personnel position, the City Manager may use available funds for contract services to perform the same or similar tasks.

C. Adjustments to Budgeted Revenues – The City Manager may approve requests for adjustments to budgeted revenues related to Subsections III.A and III.B above.

D. Reporting Requirements – The City Manager-approved budget adjustments will be incorporated into the budget document in the manner similar to the Council-approved budget amendments. The City Manager or Finance Director will promptly report in writing to the Council all adjustments to appropriations and budgeted revenues as they occur on a weekly basis. The Finance Director will present a semi-annual report (generally January and June) of the City Manager-approved budget adjustments to the City Council as a Consent Calendar item.

IV. Revenues

A. Revenue Diversification

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To the extent possible, the City will strive to maintain a diversified and stable revenue base to shelter public services from short-term fluctuations in individual revenue sources. The City currently has a diversified, but variable revenue base. The City’s ability to add any new revenue source is severely limited under California law (e.g., Propositions 13 and 218). The City manages unforeseen fluctuations in revenues with the fund balance policy, conservative budgeting practices, and other budget and financial policies.

B. Fees and Charges

User fees will be imposed to cover the cost of services provided for unique or narrow segments of the community. Fees may be set at levels sufficient to cover the entire cost of service delivery, or the service may be subsidized, as the City Council finds are in the public interest.

Development impact fees are imposed to recover costs related to the future capital needs of governmental and park facilities due to the population and service growths caused by new developments. The City will review and update the fees and the fee study periodically to determine the maximum justified development fee levels to maintain the City’s facilities standards.

The City currently owns water and sewer systems. To ensure those funds remain self-supporting, to the extent possible, rate structures will fully fund their respective direct and indirect costs of operations, infrastructure maintenance, debt service, depreciation, and system improvements.

C. One-Time and Unpredictable Revenues

The City will use major one-time revenues to fund economic development, capital improvements, other one-time expenditures, or reserves. The use of one-time revenues to fund ongoing expenditures is discouraged.

Unpredictable revenues will be budgeted conservatively.

All one-time grants will be carefully examined for the local matching requirements. Some grants may not be accepted if the local matching funds are not available or justified. The Department that prepares a grant application must coordinate the efforts at inception with the Department responsible for the management of the potential local matching funds.

Grants may also be rejected if programs must be continued extensively with scarce local resources after grant funds are exhausted.

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V. Expenditures, Debt, and Capital Assets

A. Operating/Capital Expenditure Accountability

It is the City’s policy for each department to compare actual expenditures with the budget, generally on a monthly or quarterly basis. If necessary, appropriate corrective actions should be taken to bring the department budget into balance for each Fund. Corrective actions may include expenditure reductions, reallocation to different Funds, additional budget authority, and others.

B. Debt Issuance, Capacity, and Management

The City’s debt issuance is governed by the Debt Management Policy (Attachment 1) adopted by the Council.

In general, issuing debt to acquire, construct, and improve capital assets is acceptable. It is not generally acceptable, however, to issue debt to fund operating costs unless there are extenuating circumstances. Some agencies issue short-term debt annually as a remedy to their operating cash flow deficits. Fortunately, Bellflower is in a better financial position and uses the General Fund reserve for such cash flow needs.

The life of a debt should not be greater than the estimated useful life of the assets being financed, and the final maturity should generally be limited to 30 years, unless a longer maturity is warranted on a case-by-case basis.

Interest should generally be fixed with principal amortization to achieve approximately level debt service. Long-term obligations should be callable in 10 years or less to provide flexibility to refund bonds to capture financial savings if interest rates decline.

The maximum amount of the general obligation bonds the City can issue is set by California law; and for other debt paid with the City’s revenues, the limit can be set by the Council based on the best interest of the City. In determining a debt limit, rating agencies use annual debt service as a percentage of budget. Based on the analysis published by Standard & Poor’s and Fitch, 10% of a budget represents a moderate debt burden for the General Fund. As a result, the General Fund’s debt limit should be no more than 10%. Enterprise Funds, however, generally require a higher debt limit, which will be determined on a case-by-case basis.

Issuing debt commits a portion of the City's revenues for a very lengthy period, and may limit the City's flexibility to respond to changing service priorities, revenue inflows, or cost structures. Adhering to a debt policy will - 12 -

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help ensure debt is issued and managed prudently in order to maintain a sound fiscal position.

C. Capital Assets

The City has a sizeable investment in public infrastructure (e.g., streets, parks, water lines, sewer system, and others), facilities, equipment, and other assets. To provide proper control and accountability over capital assets, including periodic condition assessment, and to assist in gathering and maintaining information required for the preparation of annual financial reports, the Finance Department will maintain a Capital Asset Policy.

VI. Long-Range Financial Planning

When the City proposes to adopt or make changes to a policy, program, or assumption, the process will include assessment of the long-term financial implications to the current and future operating and capital budgets, existing programs and goals, City’s policies, and other factors. A similar process will be applied to assess long-term financial implications of the new laws, regulations, and developments, including changes in the economy that will have significant effects on the City.

VII. Budget Calendar Policy

To ensure timely fiscal planning and distribution of the City Manager’s Recommended Budget to the Council and the public, the Finance Director is required to submit for Council approval a budget calendar by the first Council Meeting in December of even-numbered years in compliance with the following time guidelines:

STAFF BUDGET PREPARATION TIMETABLE:

Finance Department distributes electronic budget input sheets, instructions, and year-to-date revenue and expenditure detail reports.

December or
January
Department Heads submit to Finance estimated revenues and expenditures for the current year, budget requests for the following two years, department and division descriptions, budget messages, and staffing changes. (City Council should also submit budget requests to the City Manager during this time.)
4 to 8 weeks
Finance distributes Draft Budget to the City Manager and Department Heads. 4 weeks City Manager holds staff meetings. 3 weeks
Finance prepares and distributes Management’s Recommended Budget to Council and community.
1 week
City Council submits questions and requests for information/clarification to the City Manager.
1½ to 2 weeks
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COUNCIL BUDGET STUDY SESSIONS AND MEETINGS:

Council continues to review the budget, requests additional information, and submits questions.
2 weeks
Council holds Budget Study Sessions (Special Council Meetings). 2 to 3 meetings Council submits proposed changes to the City Manager. 1 week Finance distributes a compilation report, which includes all changes proposed by the Council and the City Manager.
1 week
Council holds a Special Meeting to vote on changes. 1 week Finance distributes Proposed Budget to Council and community. 1 week Council adopts the budget. Council
Meeting in June

VIII. Budget Format Policy

To ensure ease of use and to facilitate greater community participation, the reporting format of the Annual Operating Budget will be consistent from one budget cycle to another. Any substantive changes to the format must be approved by the City Council or City Manager.

IX. Surplus Personal Property Disposition Policy

The City Manager is responsible for the transfer and disposition of surplus City personal property. "Surplus personal property" is used generically to describe any City property that is no longer needed or useable by the holding department.

The City Manager, or designee, has the authority to declare an item surplus for a value estimated at less than $25,000. The City Council must direct disposition of a surplus item with a value estimated at $25,000 or greater.

Each department will periodically review its equipment, furniture, material, and inventory and promptly notify the City Manager, or designee, of any surplus property. A surplus property list, containing the applicable City tag number, description, condition, location, and quantity, will be completed and submitted to the City Manager, or designee for approval.

A. Methods of Disposition

The City Manager, or designee, will determine or approve one of the following methods of disposition that is most appropriate and in the best interests of the City.

1. Transfer to Another Department

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Surplus property may be transferred between City departments.

Departments wishing to transfer surplus property to or from another department must complete the Property Form and submit it to the City Manager for review. All transfers of items require approval of the Department Heads from each department affected by the transfer.

2. Trade-In

Property declared as surplus may be offered as a trade-in for credit toward the acquisition of new property. All trade-in offers will be submitted for the review and approval of the City Manager. If surplus property is to be applied to a purchase order, the trade-in value will be itemized on the purchase order with an appropriate revenue account. The amount charged against the expenditure account will be the value of the purchase before application of the trade-in credit.

3. Return to Manufacturer

Surplus property may, when possible, be returned to the manufacturer for buy-back or credit toward the purchase of new property.

4. Disposal

Surplus property may be offered for sale by the City Manager. All surplus property is for sale "as is" and "where is," with no warranty, guarantee, or representation of any kind, expressed or implied, as to the condition, utility, or usability of the property offered for sale.

Appropriate methods of sale are as follows:

(a) Public Auction - Surplus property may be sold at public auction. Public auctions may be conducted by City employees, or the City may contract with a professional auctioneer including professional auction services.

(b) Sealed Bids - Sealed bids may be solicited for the sale of surplus property. Surplus property disposed of in this manner will be sold to the highest responsible bidder.

(c) Selling for Scrap - Surplus property may be sold as scrap if the City Manager determines that the value of the raw material exceeds the value of the property as a whole.

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(d) Negotiated Sale - Surplus property may be sold outright if the City Manager determines that only one known buyer is available or interested in acquiring the property.

(e) Disposal as Junk - When the cost of locating a buyer exceeds the estimated sale price of surplus property, the City Manager may destroy or dispose of the item as junk.

(f) Donations - Surplus property may be given to any nonprofit organization located within the City or funded by the City. Such donation to any organization valued at more than $2,500 per fiscal year requires City Council approval.

B. Proceeds

Revenue from the sale or trade-in of surplus property should be returned to the appropriate Fund.

X. Other Policies

The City Council establishes the Operating Budget which provides direction to the City Manager to implement its policies and programs.

A. Upon execution, copies of all agreements will be made a matter of public record by being placed on the City Council Agenda (Consent Calendar).

The City Manager will bring forward for separate City Council consideration those agreements the City Manager determines should receive such separate consideration.

B. Authority to execute warrants for the payment of goods and services.

For the City’s Operating Account, each warrant will be executed by two of the following four officers: City Manager, City Clerk, Assistant City Manager, and Finance Director/City Treasurer and countersigned by the Mayor (or in his absence by the Mayor Pro Tem). For Revolving, Payroll, Grant, and Other Accounts, each warrant will be executed by one or more of the aforementioned four officers and countersignature by the Mayor is not required. Upon execution, a summary of the details of the warrants will be entered into a register that will be made a matter of public record by being placed on the City Council Agenda (Consent Calendar). The City’s warrants may be executed by either manual or electronic signature.

Warrants with electronic signatures must bear the signatures of the Mayor, City Manager, and Finance Director/City Treasurer.

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Pursuant to the Uniform Facsimile Signature of Public Officials Act (Government Code §§ 5500, et seq.), the City Clerk’s Office will file the required Facsimile Signature Statements of the Mayor, City Manager, and Finance Director/City Treasurer with the State of California Secretary of State. The Mayor’s Facsimile Signature Statement must be updated annually following the City Council Reorganization.

XI. Biennial Update

The City’s Budget, Financial, Debt, and Administrative Policies will be reviewed and, if necessary, updated biennially by the Finance Director and adopted by the City Council as an attachment to the biennial budget resolution.

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CITY OF BELLFLOWER

DEBT MANAGEMENT POLICY

(Refer Budget, Financial, Debt, and Administrative Policies – Resolution No. 23-22)

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I. Introduction

The City of Bellflower established this Debt Management Policy to provide clear and comprehensive guidelines for the issuance and financial management of the City’s debt portfolio. This Policy is intended to guide the Finance Department in its debt issuance in the course of its customary practices.

II. Scope

The guidelines established by this Policy will govern the issuance and management of all debt funded for long-term capital financing needs and not for general operating functions. The Finance Department recognizes changes in the capital markets and other unforeseen circumstances may require action which may deviate from this Policy.

In cases which require exceptions to this Policy, approval from the City Council will be necessary for implementation.

III. Policy Goals and Objectives

The purpose of this Policy is to establish prudent debt issuance guidelines to ensure the City meets the following objectives:

• Provide safe and cost effective means of debt issuance to fund the City’s capital and operating plan and refinance existing debt;
• Maintain moderate debt and debt service payments with effective planning and coordination;
• Ensure all debt obligations will be met in a timely and efficient manner; • Ensure the term of the debt shall not exceed the expected useful life of the capital improvement;
• Mandate the City comply with all debt covenants;
• Ensure all required disclosure reports are filed on a timely basis; • Maintain effective communications with bond rating agencies and investors; and • Preserve financial flexibility

The City is committed to financial planning, maintaining appropriate reserves levels and employing prudent practices in governance, management and budget administration.

The City intends to issue debt for the purposes stated in this Debt Policy and to implement policy decisions incorporated in the City’s annual operating budget.

It is a policy goal of the City to protect taxpayers, ratepayers and constituents by utilizing conservative financing methods and techniques so as to obtain the highest practical credit ratings (if applicable) and the lowest practical borrowing costs.

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The City will comply with applicable state and federal law as they govern the maximum term of debt and the procedures for levying and imposing any related taxes, assessments, rates and charges.

Except as otherwise provided, when refinancing debt it is the City’s policy goal to realize, whenever possible and subject to any overriding non-financial policy considerations, minimum net present value debt service savings equal to or greater than 4% of the refunded principal amount.

IV. Types of Debt

In order to maximize the financial options available to benefit the public, it is the City’s policy to allow for the consideration of issuing all generally accepted types of debt including, but not exclusive to, the following:

1. Certificates of Participation (COPs)

When a city finances a public facility through a lease-purchase or lease-sublease transaction, the interest in the lease payments is assigned to a third party under the COPs structure. A COP is a security that evidences an undivided fractional interest in an underlying lease or installment sale agreement. A COP entitles its owner to a proportionate share of lease (or installment sale) payments made by the city pursuant to a lease (or an installment sale) agreement. COPs function like municipal bonds.

2. Lease Revenue Bonds

Lease revenue bonds are issued by a public agency, or on behalf of a public agency, to finance capital improvements which are then leased to a public agency. The bonds are secured by lease payments received from an agency other than the issuer. In a typical lease revenue bond financing, a public agency establishes a joint powers authority or nonprofit corporation which issues lease revenue bonds to finance the construction of a public facility. The facility is then leased back to the public agency. The joint powers authority or nonprofit corporation pays debt service on the bonds from the lease payments received from the public agency. Unlike a COP financing, the bonds themselves are the tax-exempt lease obligation, not the lease. Lease revenue bonds are used less extensively than COPs because they generally must be sold at competitive sale and are subject to other restrictions which do not apply to COPs.

3. Revenue Bonds

Revenue bonds are long-term debt instruments retired by specific dedicated revenues, often revenues generated by a project funded out of bond proceeds. Revenue bonds are designed to be self-supporting through user fees or other special earmarked receipts; the general taxing powers of the jurisdiction are not pledged. The debt created - 19 -

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through the issuance of revenue bonds is to be repaid by the earnings from the operations of a revenue-producing enterprise (an enterprise revenue bond), from special taxes (a special revenue bond), or from contract leases or rental agreements (a lease revenue bond).

4. HUD Section 108 Loan

Section 108 Program is the loan guarantee component of the Community Development Block Grant (CDBG) program and is authorized by Section 108 (42 U.S.C. § 5308) of the Housing and Community Development Act of 1974, as amended (HCD Act). HUD's regulations implementing the Section 108 Program are codified at 24 CFR part 570, subpart M (entitled “Loan Guarantees”). The Section 108 Program provides states and local governments with access to long-term (up to 20 year) fixed-rate loans at relatively low interest rates to finance certain categories of eligible CDBG activities. Under Section 108(a) of the HCD Act and authorizing language in HUD's annual appropriations, HUD enters into commitments to guarantee, and subsequently guarantees, promissory notes issued by units of general local government (or their designated public agencies) or states. Under Section 108(r) of the HCD Act, HUD, acting on behalf of these borrowers, periodically arranges for the issuance of a series of trust certificates based on a large pool of such notes and engages underwriters (investment banking firms) to market and sell interests in the trust certificates to private investors in a public offering.

HUD guarantees the timely payment of the principal of and interest on the trust certificates and, under the provisions of the Section 108 statute, the full faith and credit of the United States is pledged to honor the guarantee. Because of the federal guarantee, interest payable on the trust certificates and the underlying notes can be set at relatively low, fixed-rates and investors are willing to purchase interests in the certificates because of the security provided by such guarantee. Proceeds of the sale, less certain underwriting and trust administration fees and costs, are advanced to the borrowers, who pay interest on a given year's principal installment at the fixed interest rate borne by the trust certificate of corresponding maturity.

5. Assessment Bonds

Assessment bonds are repaid from taxes collected from those who benefit from the project. An assessment is any levy or charge imposed upon real property by a local agency for a special benefit conferred upon the real property from a public improvement.

Assessment bonds are issued upon the security of the assessments and are payable from either (a) scheduled installments of assessments, collected either by a direct billing to the property owner or by posting to the secured property tax roll of the county in which the real property is located or (b) proceeds of prepayments of assessments - 20 -

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made by property owners to discharge the lien of the unpaid assessment on a specific parcel.

6. General Obligation (GO) Bonds

In California, GO Bonds may only be issued with two-thirds approval of a popular vote.

The California Constitution limits the use of the proceeds from GO Bonds to “the acquisition or improvement of real property.”

GO Bonds are bonds secured either by a pledge of the full faith and credit of the issuer and/or by a promise to levy taxes in an unlimited amount as necessary to pay debt service. With very few exceptions, local agencies are not authorized to issue “full faith and credit” bonds. The GO Bonds of such agencies are typically payable only from ad valorem property taxes, which are required to be levied in an amount sufficient to pay interest and principal on the bonds maturing in each year.

While GO Bonds typically are the least expensive debt available to a government, there are drawbacks to using GO debt in certain situations. GO Bonds require voter approval, which may delay the financing of a project. If voters do not approve the bonds, then officials must find another way to finance the project, or cancel the project outright.

Furthermore, the ability to issue GO Bonds may be constrained by legal debt limits for entities with such restrictions.

7. Tax and revenue anticipation notes (TRANs)

TRANs are issued by public agencies to fund cash flow deficits in a fiscal year.

Typically, they would be issued at the beginning of the fiscal year and mature at the end of such fiscal year. TRAN proceeds may be used and expended for any purpose, including operating expenses, capital expenditure, repayment of indebtedness and investment and reinvestment.

8. Refunding Obligations

Refunding bonds are bonds issued to refinance (refund) previously issued outstanding debt. The City may issue refunding bonds to refinance the principal of and interest on outstanding bonds or other debt to achieve debt service savings, restructure scheduled debt service, convert from or to a variable or fixed interest rate, change or modify the source(s) of payment and security for the refunded debt, or modify covenants otherwise binding upon the City. Refunding bonds may be issued either on a current or advance basis. Absent any significant non-economic factors, a refunding should produce minimum net debt service savings of at least 3% of the par value of the refunded bonds on a net present value basis, using the refunding issue’s True Interest Cost (TIC) as the discount rate, unless the Director of Finance determines that a lower savings percentage is acceptable for issues or maturities with short maturity dates. - 21 -

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9. Other Obligations

There may be special circumstances when other forms of debt are appropriate and may be evaluated on a case-by-case basis. Such other forms include, but are not limited to, non-enterprise revenue bonds, bond anticipation notes, grant anticipation notes, and judgment or settlement obligation bonds. The City Council may approve these other forms of debt without an amendment to this Debt Policy when it determines it is in the public interest to do so.

To maintain a predictable debt service burden, the City will give preference in the future to debt that carries a fixed interest rate. An alternative to the use of fixed rate debt is variable rate debt. The City may choose in the future to issue securities that pay a rate of interest that varies according to a pre-determined formula or results from a periodic remarketing of securities. When making the determination to issue bonds in a variable rate mode in the future, consideration will be given in regards to the useful life of the project or facility being financed or the term of the project requiring the funding, market conditions, credit risk and third party risk analysis, and the overall debt portfolio structure when issuing variable rate debt for any purpose.

V. Purposes For Which Debt May Be Issued

The City will consider the use of debt financing primarily for capital improvement projects (CIP) when the project’s useful life will equal or exceed the term of the financing and when resources are identified sufficient to fund the debt service requirements. An exception to this CIP driven focus is the issuance of short-term instruments such as tax and revenue anticipation notes, which are to be used for prudent cash management purposes and conduit financing, as described below.

Bonded debt should not be issued for projects with minimal public benefit or support, or to finance normal operating expenses.

If a department has any project which is expected to use debt financing, the department director is responsible for expeditiously providing the City Manager and the Director of Finance with reasonable cost estimates, including specific revenue accounts that will provide payment for the debt service. This will allow an analysis of the project’s potential impact on the City’s debt capacity and limitations. The department director must also provide an estimate of any incremental operating and/or additional maintenance costs associated with the project and identify sources of revenue, if any, to pay for such incremental costs.

(A) Long-Term Debt. Long-term debt may be issued to finance or refinance the construction, acquisition, and rehabilitation of capital improvements and facilities, equipment and land to be owned and/or operated by the City.

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Bellflower City CouncilJune 12, 2023

Bellflower City Council
June 12, 2023