Bradbury City Council
September 20, 2022

City of Bradbury
Bradbury, California
Basic Financial Statements
For the Year Ended June 30, 2021

City of Bradbury
Basic Financial Statements
For the Year Ended June 30, 2021
Table of Contents
Page
Report on the Financial Statements ....................................................................................................................... 1 Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ........................................................................................ 5 Basic Financial Statements:

Government-Wide Financial Statements:

Statement of Net Position ............................................................................................................................. 11 Statement of Activities ................................................................................................................................. 12 Governmental Fund Financial Statements:

Balance Sheet ............................................................................................................................................... 14 Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position .............................................................................. 17 Statement of Revenues, Expenditures, and Changes in Fund Balances ....................................................... 18 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities ........................................................................................................................... 20 Notes to the Basic Financial Statements ............................................................................................................. 23 Required Supplementary Information (Unaudited):

Budgetary Comparison Schedules:

General Fund ................................................................................................................................................ 47 Sewer Special Revenue Fund ....................................................................................................................... 48 Utility Users Tax (UUT) Special Revenue Fund .......................................................................................... 49 Citizens' Option for Public Safety (COPS) Special Revenue Fund .............................................................. 50 Public Transportation Fund (Prop A) Special Revenue Fund ...................................................................... 51 Budgetary Information ........................................................................................................................................ 53 Schedule of the City's Proportionate Share of the Net Pension Liability and Related Ratios ............................ 54 Schedule of the City's Contributions - Pensions ................................................................................................. 56 City of Bradbury
Basic Financial Statements
For the Year Ended June 30, 2021
Table of Contents (Continued)
Supplementary Information:

Nonmajor Governmental Funds:

Combining Balance Sheet ............................................................................................................................ 62 Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances ..................................................................................................................... 65 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual County Park Grant Special Fund ........................................................................................................... 68 Measure R Special Revenue Fund ......................................................................................................... 69 Recycling Grant Special Revenue Fund ................................................................................................ 70 Fire Grant Special Revenue Fund .......................................................................................................... 71 Measure M Special Revenue Fund ........................................................................................................ 72 TDA Special Revenue Fund .................................................................................................................. 73 Gas Tax Special Revenue Fund ............................................................................................................. 74 Proposition C Special Revenue Fund ..................................................................................................... 75 SB 1 Gas Tax Special Revenue Fund .................................................................................................... 76 Measure W Special Revenue Fund ........................................................................................................ 77 To the Honorable Mayor and Members of the City Council
of the City of Bradbury
Bradbury, California
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Bradbur June 30, 2021, and the related notes to the financial statem statements as listed in the table of contents.

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.

Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the audito material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the
statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of rnal control. Accordingly, we express no such opinion.

An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

To the Honorable Mayor and Members of the City Council
of the City of Bradbury
Bradbury, California

2 Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2021, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America, require that the Budgetary Comparison of the Net Pension Liabilities and Related Ratios, and the Pensions on pages 47 through 57 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the Required Supplementary Information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the informa responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Management has omitted the Management that accounting principles generally accepted in the United States of America required to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information.

Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise . The Combining and Individual Nonmajor Fund Financial Statements are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The Combining and Individual Nonmajor Fund Financial Statements are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Combining and Individual Nonmajor Fund Financial Statements are fairly stated in all material respects, in relation to the basic financial statements as a whole.

To the Honorable Mayor and Members of the City Council
of the City of Bradbury
Bradbury, California

3 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated August 30, 2022, on our l reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an
compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards rol over financial reporting and compliance.

Santa Ana, California
August 30, 2022
4 This page intentionally left blank.

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND

OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN

ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the Honorable Mayor and Members of the City Council
of the City of Bradbury
Bradbury, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Bradbur June 30, 2021, and the related notes to the financial statem statements, and have issued our report thereon dated August 30, 2022.

Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the C financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an rol. Accordingly, we do not express an opinion on the
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

To the Honorable Mayor and Members of the City Council
of the City of Bradbury
Bradbury, California

6 Compliance and Other Matters
As part of obtaining reasonable assurance about whether th misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards Accordingly, this communication is not suitable for any other purpose.

Santa Ana, California
August 30, 2022

BASIC FINANCIAL STATEMENTS
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8 GOVERNMENT-WIDE FINANCIAL STATEMENTS
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10 Governmental
Activities
ASSETS
Current assets:

Cash and investments 4,987,961 $
Accounts receivable 267,752
Taxes receivable 85,652
Interest receivable 2,740
Prepaid items 10,340
Total current assets 5,354,445
Noncurrent assets:

Capital assets:

Nondepreciable 836,674
Depreciable, net 2,729,902
Total capital assets 3,566,576
Total noncurrent assets 3,566,576
Total assets 8,921,021

DEFERRED OUTFLOWS OF RESOURCES
Pension related deferred outflows of resources 63,204
Total deferred outflows of resources 63,204

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 171,968
Unearned revenue 241,403
Net pension liability 118,908
Total current liabilities 532,279
Total liabilities 532,279

DEFERRED INFLOWS OF RESOURCES
Pension related deferred inflows of resources 37,997
Total deferred inflows of resources 37,997

NET POSITION
Investment in capital assets 3,566,576
Restricted 426,416
Unrestricted 4,420,957
Total net position $ 8,413,949
City of Bradbury
Statement of Net Position
June 30, 2021
See accompanying Notes to the Basic Financial Statements. 11 Net (Expense)
Operating Capital Revenue and
Charges for Grants and Grants and Changes in
Functions/Programs Expenses Services Contributions Contributions Net Position Governmental activities:

General government 918,494 $ 447,492 $ 3,893 $ - $ (467,109) $ Public safety 218,339 - 282,308 - 63,969
Public works 339,186 117,938 189,707 10 (31,531)
Parks and recreation 25,819 - - - (25,819)
Total governmental activities $ 565,430 1,501,838 $ 475,908 $ 10 $ (460,490) General Revenues:

Property taxes 532,060
Sales taxes 6,308
Franchise taxes 127,941
Motor vehicle in lieu 144,160
Busines license 32,094
Use of money and property 13,275
Miscellaneous 49,785
Total general revenues 905,625
Changes in net position 445,135
Net Position:

Beginning of year 7,968,814
End of year $ 8,413,949
Program Revenues
City of Bradbury
Statement of Activities
For the Year Ended June 30, 2021
See accompanying Notes to the Basic Financial Statements. 12 GOVERNMENTAL FUND FINANCIAL STATEMENTS
13 General
Fund Sewer Utility Users Tax COPS
ASSETS
Cash and investments 3,167,965 $ 665,484 $ 603,560 $ 290,328 $ Accounts receivable 267,752 - - -
Taxes receivable 79,115 - - -
Interest receivable 1,733 376 332 160
Prepaid items 10,340 - - -
Due from other funds 6,179 - - -
Total assets $ 665,860 3,533,084 $ 603,892 $ 290,488 $

LIABILITIES, DEFERRED INFLOWS

OF RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities 107,314 $ - $ 1,887 $ - $ Unearned revenues - - - 235,740
Due to other funds - - - -
Total liabilities - 107,314 1,887 235,740
Deferred Inflows of Resources:

Unavailable revenue 139,769 - - -
Total deferred inflows of resources - 139,769 - -
Fund Balances:

Nonspendable 10,340 - - -
Restricted 172,798 - - 54,748
Committed - 665,860 602,005 -
Assigned 1,000,000 - - -
Unassigned 2,102,863 - - -
Total fund balances 665,860 3,286,001 602,005 54,748
Total liabilities, deferred inflows $ 665,860 3,533,084 $ 603,892 $ 290,488 $ of resources and fund balances
Special Revenue Funds
City of Bradbury
Balance Sheet
Governmental Funds
June 30, 2021
Major Funds
See accompanying Notes to the Basic Financial Statements. 14 Major Funds
Special Revenue Funds
Public Nonmajor Total
Transportation Governmental Governmental
Fund (Prop A) Funds Funds
ASSETS
Cash and investments 61,394 $ 199,230 $ 4,987,961 $
Accounts receivable - - 267,752
Taxes receivable - 6,537 85,652
Interest receivable 32 107 2,740
Prepaid items - - 10,340
Due from other funds - - 6,179
Total assets $ 205,874 61,426 $ 5,360,624 $

LIABILITIES, DEFERRED INFLOWS

OF RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities 60,000 $ 2,767 $ 171,968 $ Unearned revenues - 5,663 241,403
Due to other funds - 6,179 6,179
Total liabilities 14,609 60,000 419,550
Deferred Inflows of Resources:

Unavailable revenue - - 139,769
Total deferred inflows of resources - - 139,769
Fund Balances:

Nonspendable - - 10,340
Restricted 1,426 197,444 426,416
Committed - - 1,267,865
Assigned - - 1,000,000
Unassigned - (6,179) 2,096,684
Total fund balances 191,265 1,426 4,801,305
Total liabilities, deferred inflows $ 205,874 61,426 $ 5,360,624 $ of resources and fund balances
City of Bradbury
Balance Sheet (Continued)
Governmental Funds
June 30, 2021
See accompanying Notes to the Basic Financial Statements. 15 This page intentionally left blank.
16 Total Fund Balances - Total Governmental Funds $ 4,801,305 $ 836,674
2,729,902 3,566,576
Pension related deferred outflows of resources 63,204
(118,908)
Pension related deferred inflows of resources (37,997)
139,769
Net Position of Governmental Activities $ 8,413,949
City of Bradbury
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2021
Capital assets, nondepreciable
Revenue reported as unavailable revenue in the governmental funds when it is not received soon enough after yearend for current expenditures. The availability criteria does not apply to the Government-Wide Financial Statements and, therefore, the revenue is recognized when eligibility requirements are met and earned.

Net pension liability
Capital assets, net of accumulated depreciation
Amounts reported for governmental activities in the government-wide statement of net position were different because:

Capital assets used in governmental activities were not financial resources and therefore, were not reported in governmental funds.

Net pension liabilities and the related deferred outflows of resources and deferred inflows of resources are not due and payable in the current period or not available for current expenditures and are not reported in the governmental fund financial statements:

See accompanying Notes to the Basic Financial Statements. 17 General
Fund Sewer Utility Users Tax COPS
REVENUES:

Taxes 814,363 $ - $ - $ - $
Licenses and permits 99,701 - - -
Use of money and property 6,991 6,319 6,323 2,201
Intergovernmental 237,819 67,433 - 70,054
Charges for current services 379,000 - - -
Other revenue 55,485 - - -
Total revenues 73,752 1,593,359 6,323 72,255
EXPENDITURES:

Current:

General government 824,851 35,160 - -
Public safety 148,285 - - 70,054
Public works - - 91,186 -
Parks and recreation 25,819 - - -
Capital outlay - 305,696 - -
Total expenditures 340,856 998,955 91,186 70,054
REVENUES OVER (UNDER) EXPENDITURES (267,104) 594,404 (84,863) 2,201 OTHER FINANCING SOURCES (USES):

Transfers in 44,815 240,000 - -
Transfers out (284,815) - - -
Total other financing sources (uses) 240,000 (240,000) - - Net change in fund balances (27,104) 354,404 (84,863) 2,201 FUND BALANCES:

Beginning of year 2,931,597 692,964 686,868 52,547
End of year $ 665,860 3,286,001 $ 602,005 $ 54,748 $
Major Funds
Special Revenue Funds
City of Bradbury
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the Year Ended June 30, 2021
See accompanying Notes to the Basic Financial Statements. 18 Public Nonmajor Total
Transportation Governmental Governmental
Fund (Prop A) Funds Funds
REVENUES:

Taxes - $ - $ 814,363 $
Licenses and permits - - 99,701
Use of money and property 445 2,324 24,603
Intergovernmental 21,669 181,666 578,641
Charges for current services - - 379,000
Other revenue - - 55,485
Total revenues 183,990 22,114 1,951,793
EXPENDITURES:

Current:

General government - 860,011
Public safety - - 218,339
Public works 60,000 136,226 287,412
Parks and recreation - - 25,819
Capital outlay - - 305,696
Total expenditures 136,226 60,000 1,697,277
REVENUES OVER (UNDER) EXPENDITURES 47,764 (37,886) 254,516 OTHER FINANCING SOURCES (USES):

Transfers in - - 284,815
Transfers out - - (284,815)
Total other financing sources (uses) - - -
Net change in fund balances 47,764 (37,886) 254,516
FUND BALANCES:

Beginning of year 39,312 143,501 4,546,789
End of year $ 191,265 1,426 $ 4,801,305 $
City of Bradbury
Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Governmental Funds
For the Year Ended June 30, 2021
See accompanying Notes to the Basic Financial Statements. 19 Net Change in Fund Balances - Total Governmental Funds: $ 254,516 $ 305,696
227,244 (78,452)
(31,805)
(4,820)
Change in Net Position of Governmental Activities $ 445,135 Revenues reported as unavailable revenue in the governmental funds and recognized as revenue in the Statement of Activities.

Certain pension expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds, net of contribution made after measurement date in the amount of $24,748.

City of Bradbury
Changes in Fund Balances to the Government-Wide Statement of Activities For the Year Ended June 30, 2021
Amounts reported for governmental activities in the statement of activities are different because:

Capital assets used in governmental activities are not financial resources and therefore are not reported in governmental funds:

Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Capital outlay
Depreciation
See accompanying Notes to the Basic Financial Statements. 20 21

NOTES TO THE BASIC FINANCIAL STATEMENTS
22 This page intentionally left blank.

City of Bradbury
Notes to the Basic Financial Statements
For the Year Ended June 30, 2021
23 The City of Bradbury, California (the "City"), was incorporated on July 26, 1957. The City provides a broad range of services to its citizens, including general government, public safety, streets, sanitation, and parks and recreation.

Many of the municipal governmental functions of the City are provided by special districts. Examples of some of these special districts, which usually encompass areas larger than the City itself, are the Fire Protection District, the Library District, the Sewer Maintenance District and the County Flood Control District. Certain other governmental functions are paid for by the City, but performed by Los Angeles County departments under contract. Some of the contracts now in effect are for police protection, street maintenance, and tax collection services.

The City is a general law city operating under the City Council/City Manager form of government. The financial reporting entity of the City is comprised of various funds. The accompanying financial statements include those of the City and contain only the funds of the City.

In evaluating how to define the City for financial reporting purposes, management has considered all potential component units. The primary criteria for including a potential component unit within the reporting entity are the nd a financial benefit or burden relationship and whether it is misleading to exclude. A primary government is financially accountable and shares a financial benefit or burden relationship, if it and it is able to impose its will on the organization, or if there is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens on the primary government. A primary government may also be financially accountable if an organization is fiscally dependent on the primary government regardless of whether the organization has a separately elected governing board, a governing board appointed by a higher level of government, or a jointly appointed board, and there is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens on the primary government.

There are no component units for the City that meet the criteria for blended or discrete presentation.

A. Basis of Presentation
The basic financial statements of the City have been prepared in accordance with accounting principles generally applied to governmental agencies. The Governmental
standard setting body for establishing governmental
accounting and financial reporting principles.

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

Government-Wide Financial Statements
The City's government-wide financial statements include a statement of net position and a statement of activities.

These statements present summaries of governmental activities for the City. The City does not have any businesstype activities; therefore, only governmental activities are reported.

City of Bradbury
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
24 B. Measurement Focus, Basis of Accounting, and Financial Statements Presentation (Continued) Government-Wide Financial Statements (Continued)
The government-wide financial statements are presented on an "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all of the City's assets and liabilities are included in the accompanying statement of net position. The statement of activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned, while expenses are recognized in the period in which the liability is incurred.

Certain types of transactions are reported as program revenues for the City in three categories: (1) charges for services, (2) operating grants and contributions, and (3) capital grants and contributions.

Certain eliminations have been made in regards to interfund activities, payables, and receivables. The transfers in and out, and due to and due from other funds activities have been eliminated.

Governmental Fund Financial Statements
Governmental fund financial statements include a balance sheet and a statement of revenues, expenditures, and changes in fund balances for all major governmental funds and nonmajor funds in aggregate. An accompanying schedule is presented to reconcile and explain the differences in net position as presented in these statements to the net position presented in the government-wide financial statements. The City has presented all major funds that met the qualifications for major fund reporting.

All governmental funds are accounted for on a spending or "current financial resources" measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the balance sheets. The statement of revenues, expenditures, and changes in fund balance presents increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets.

Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period. available when they are collectible within the current period as soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. The primary revenue sources, which have been treated as susceptible to accrual by the City, are property taxes, sales tax, intergovernmental revenues, other taxes, and grant revenues.

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

The reconciliations of the Fund Financial Statements to the Government-Wide Financial Statements are presented to explain the differences.

The City reports the following major governmental funds:

General Fund is the general operating fund of the City. All general tax revenues and other receipts not allocated by law or contractual agreement to other funds are accounted for in this fund. Expenditures of this fund include general operating costs not paid through other funds. The General Fund is used to account for all activities of the City not accounted for in some other fund.

City of Bradbury
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
25 B. Measurement Focus, Basis of Accounting, and Financial Statements Presentation (Continued) Governmental Fund Financial Statements (Continued)
Sewer Special Revenue Fund is used to account for assessments collected and projects funded with the assessments.

Utility Users Tax Special Revenue Fund is used to record the receipt and disbursement of funds received from the utility users tax assessed by the City. When it was approved by voters, it was specified to be separated into its own fund for the purpose of complying with the Clean Water Act. The fund is used to tain a safe and quality community and meet the
obligations for State and Federal Mandates.

Fund
disbursement of funds allocated by the State of California and must be used for front line law enforcement expenditures.

Public Transportation (Prop A) Special Revenue Fund
of funds received from the motor vehicle registration fee collected by the State of California and must be used for programs that reduce motor vehicle emissions. The City has used these funds for the purchase of alternative fuel vehicles and for enha
C. Cash and Investments
Investments are reported at fair value.

Changes in fair value that occur during a fiscal year are recognized as investment income reported for that fiscal year. Investment income includes interest earnings, changes in fair value, and any gains or losses realized upon the liquidation, maturity, or sale of investments.

The City pools cash investments of a is displayed in the accompanying financial statements as cash and investments. Investment income earned from pooled investments is allocated to average cash and investment balance.

Certain disclosure requirements, if applicable, for deposits and investment risks in the following areas:

Interest Rate Risk
Credit Risk
o Overall
o Custodial Credit Risk
o Concentration of Credit Risk
Foreign Currency Risk
In addition, other disclosures are specified including use of certain methods to present deposits and investments, highly sensitive investments, credit quality at year-end and other disclosures.

City of Bradbury
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
26 D. Fair Value Measurement
U.S. GAAP defines fair value, establishes a framework for measuring fair value and establishes disclosures about fair value measurement. Investments, unless otherwise specified, recorded at fair value in the financial statements, are categorized based upon the level of judgment associated with the inputs used to measure their fair value.

Levels of inputs are as follows:

The three levels of the fair value measurement hierarchy are described below:
entical assets and liabilities in active markets at
the measurement date.
in Level 1 that are observable for the assets and
liabilities through corroboration with market data at the measurement date. market participants
would use in pricing the assets and liabilities at the measurement date.

E. Receivables
Receivables include such items as taxes, intergovernmental revenues, charges for services, miscellaneous accounts receivable, and interest receivable. No allowance for doubtful accounts has been established, as the City believes all amounts are considered to be collectible in the normal course of business.

F. Capital Assets
Capital assets are valued at historical cost or estimated historical cost if actual historical cost was not available.

The City's capitalization policy is $5,000 and above for machinery and equipment; $10,000 and above for building improvements; $20,000 and above for buildings; and $50,000 and above for infrastructure assets. Capital assets are depreciated on a straight-line basis over their estimated useful lives as follows:

Machinery and Equipments 7-10 Years
Roadways - Pavement 25 Years
Roadways - Signs 10 Years
Sewer - Existing Pipe 75 Years
Fence 50 Years
Buildings 50 Years
Curbs and Gutters 100 Years
Bridge 75 Years
G. Interfund Activity
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the non-current portion of interfund loans).

H. Compensated Absences
The City accrues accumulated unpaid vacation and sick leave and associated employee-related costs when earned (or estimated to be earned) by the employee. All full-time employees accrue vacation leave according to their years of service. Unused sick days are forfeited at termination or resignation; therefore, there is no liability for sick leave at June 30, 2021.

City of Bradbury
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
27 I. Pensions
employer defined benefit pension plan. For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the plans and additions to/deductions from th same basis as they are reported by the plans. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with benefit terms. Investments are reported at fair value.

The following timeframes are used for pension reporting:

Valuation Date June 30, 2019
Measurement Date June 30, 2020
Measurement Period July 1, 2019 to June 30, 2020
Gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time. The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense. The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized straight-line over 5 years. All other amounts are amortized straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period.

J. Deferred Outflows / Inflows of Resources
The statement of net position reports separate sections for Deferred Outflows of Resources and Deferred Inflows of Resources, when applicable.

Deferred Outflows of Resources represent outflows of resources (consumption of net position) that apply to future periods and that, therefore, will not be recognized as an expense until that time.

Deferred Inflows of Resources represent inflows of resources (acquisition of net position) that apply to future periods and that, therefore, are not recognized as a revenue until that time.

K. Fund Balances
In the governmental fund financial statements, fund balances are classified as follows:

Nonspendable balance which cannot be spent because they are either not in spendable form, such as prepaid items, inventories or loans receivable, or legally or contractually required to be maintained intact, such as the principal portion of an endowment.

Restricted
imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments; or b) imposed by law through constitutional provisions or enabling legislation.

Committed
pursuant to formal resolution or ordinance of the City Council. The City Council is considered the highest authority for the City. Adoption of a resolution by the City Council is required to commit resources or to rescind the commitment.

City of Bradbury
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
28 K. Fund Balances (Continued)
Assigned
used for specific purposes, but is neither restricted nor committed. The City Manager is authorized by the City Council to determine and define the amount of assigned fund balance.

Unassigned
categories. This category is for any balances that have no restrictions placed upon them. The general fund is the only fund that reports a positive unassigned fund balance amount. In other governmental funds it is not appropriate to report a positive unassigned fund balance amount. However, in governmental funds other than the general fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund.

When expenditures are incurred for purposes where only unrestricted fund balances are available, the City uses the unrestricted resources in the following order: committed, assigned, and unassigned.

L. Net Position
In the government-wide financial statements, net position balances are classified as follows:

Investment in Capital Assets of capital assets, net of accumulated depreciation.

Restricted consists of restricted assets reduced by liabilities related to those assets.

Unrestricted on is the amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that are not included in the determination of investment in capital assets or the restricted component of net position.

When expenses are incurred for purposes in which both restricted and unrestricted components of net position are e restricted component of net position first.

M. Property Tax Revenues
Property taxes in California are levied in accordance with Article XIIIB of the State Constitution at one percent of county-wide assessed valuations. This one percent is allocated pursuant to state law to the appropriate units of local government. Property tax revenue is recognized in the fiscal year for which taxes have been levied, provided that the revenue is collected in the current period or will be collected within 60 days thereafter.

The following dates relate to property tax levies and collections:

Lien Date January 1
Levy Date July 1
Due Dates November 1 and February 1
Collection Dates December 10 and April 10
City of Bradbury
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
29 N. Use of Estimates
The preparation of the basic financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

O. Implementation of New GASB Pronouncements
During fiscal year ended June 30, 2021, the City has implemented the following new GASB Pronouncement:

GASB Statement No. 84 Fiduciary Activities. This statement establishes standards relating accounting and financial reporting for identifying and financial reporting of fiduciary activities. Those provisions are effective for reporting periods beginning after December 15, 2019, as amended by GASB Statement No. 95. Application of this statement was effective starting in fiscal year ending June 30, 2021. Application of this statement did not atements for the fiscal year ended June 30, 2021.

GASB Statement No. 90, Majority Equity Interests. This statement defines a majority equity interest and specifies that a majority equity interest in a legally separate organization should be reported as an investment if a nition of an investment. Those provisions are effective for reporting periods beginning after December 15, 2019. Application of this statement did not have a material for the fiscal year ended June 30, 2021.

GASB Statement No. 93, Replacement of Interbank Offered Rates. This statement addresses those and other accounting and financial reporting implications that result from the replacement of London Interbank Offered Rate (LIBOR). The removal of LIBOR as an appropriate benchmark interest rate is effective for reporting periods ending after December 31, 2021. All other requirements of this Statement are effective for reporting periods beginning after June 15, 2020. Application of this statem statements for the fiscal year ended June 30, 2021.

GASB Statement No. 98, The Annual Comprehensive Financial Report. This Statement establishes the term annual comprehensive financial report and its acronym ACFR. That new term and acronym replace instances of comprehensive annual financial report and its acronym in generally accepted accounting principles for state and local governments. Those provision are effective for fiscal years ending after December 15, 2021. The City has elected early implementation of this statement. Application of this statement did not have a material effect on the e fiscal year ended June 30, 2021.

Cash and investments as of June 30, 2021 consisted of the following:

Petty cash 300 $
Demand deposits 1,138,347
Investments with LAIF 3,356,314
Investments in certificates of deposit 493,000
Total 4,987,961 $
City of Bradbury
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
30 A. Deposits
138,347 at June 30, 2021. The bank balances at that
date were $1,177,161, the total amount of which was collateralized or insured with accounts held by the pledging financial institutions in the C
The California Government Code requires California banks and savings and loan associations to secure the City's cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in the City's name.

The market value of pledged securities must equal at least 110% of the City's cash deposits. California law also deposits by pledging first trust deed mortgage notes having a value of 150% collateral requirements for cash deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance waived the collateralization requirements.

The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under the provisions of bond indentures, if applicable. Interest income earned on pooled cash and investments is allocated on an accounting period basis to the various funds based on the period-end cash and investment balances.

B. Investments
and in accordance with Section 53601 of the California
Government Code, the City may invest in the type of investments listed in the table below. The table also exposure to interest rate risk, credit risk, and
concentration of credit risk.

Maximum Maximum
Maximum Percentage Investment
Authorized Investment Type Maturity of Portfolio in One Issuer Local Agency Investment Fund N/A No Limit 40,000,000 $
U.S. Government Obligations 5 Years No Limit No Limit
Certificates of Deposit 360 Days No Limit No Limit
C. Fair Value Measurement
At June 30, 2021, investments are reported at fair value. The following table presents the fair value measurement of investments on recurring basis and the levels within the fair value hierarchy in which the fair value measurements fall at June 30, 2021:

Significant Other
Observable Input
Investment Type (Level 2)
Negotiable certificates of deposit 493,000 $ (1)
(1) Price based on market prices from Intercontinental Exchange.

City of Bradbury
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
31 D. Risk Disclosures
Interest Rate Risk - As a means of limiting its exposure to fair value losses arising from rising interest rates, the s to a maximum maturity of five years.

At June 30, 2021, the City had the following investment maturities:

Investment Type Amount Less than 1 1 to 2 2 to 3
Local Agency Investment Fund 3,356,314 $ 3,356,314 $ - $ - $ Negotiable certificates of deposit 493,000 246,000 247,000 - Total $ 3,602,314 3,849,314 $ 247,000 $ - $
Investment Maturities (in Years)
Credit Risk r and corporate bonds to the top two ratings issued by nationally recognized statistical ratin
investment types to the top rating issued by Standard & percentage basis, were as follows:

Moody's S&P's % of Investments
Credit Credit with Interest
Investment Type Rating Rating Rate Risk
Local Agency Investment Fund Not Rated Not Rated 87.19% Negotiable certificates of deposit Not Rated Not Rated 12.81% Total 100.00%
with Credit Exposure as a Percentage of Total Investments Credit Quality Distribution for Securities
Custodial Risk that, in the event of the failure of a depository financial institution, the City will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer), the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party.

Concentration of credit risk
cept for LAIF and certificate of deposit, where there is no 3,000 represented 12.81% of total City investments.

E.

The City is a participant in LAIF, which is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The at June 30, 2021 included a portion of the pool funds invested in Structured Notes and Asset-Backed Securities, which included the following:

Structured Notes: debt securities (other than asset-backed securities) whose cash flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or that have embedded forwards or options.

City of Bradbury
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
32 E.

Asset-Backed Securities: generally, mortgage-backed securities that entitle their purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages (for example, Collateralized Mortgage Obligations) or credit card receivables.

As of June 30, 2021, the City had $3,356,314 invested in LAIF, which had invested 2.31% of the pool investment funds in Structured Notes and Asset-Backed Securities. The investment in LAIF is reported at amortized cost.

Due To and Due From
At June 30, 2021 the City had the following due to and from other funds:

Due From Other Funds
Due To Other Funds General Fund
Nonmajor Governmental Fund 6,179 $
The due to and due from is short-term borrowing to cover cash deficit.

Transfers In and Out
At June 30, 2021 the City had the following transfers in and out from other funds:

Transfer Out General Fund
Sewer Speical
Revenue Fund Total
General Fund - $ 240,000 $ 240,000 $
Nonmajor Governmental Funds 44,815 - 44,815
Total $ 240,000 44,815 $ 284,815 $
Transfer In
The purpose of the transfers was to transfer funds to cover budgeted projects.

City of Bradbury
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
33 The following schedule shows changes in capital assets for the year ended June 30, 2021:

Balance Balance
July 1, 2020 Additions Deletions July 1, 2021
Nondepreciable Assets:

Land 117,197 $ - $ - $ 117,197 $
Construction in progress 465,531 253,946 - 719,477
Total Nondepreciable Assets 582,728 253,946 - 836,674
Depreciable Assets:

Structures and improvements 859,900 - - 859,900
Machinery and equipment 101,709 - - 101,709
Infrastructure 2,929,802 51,750 - 2,981,552
Total Depreciable Assets 3,891,411 51,750 - 3,943,161
Less Accumulated Depreciation:

Structures and improvements (165,486) (17,198) - (182,684) Machinery and equipment (69,681) (9,480) - (79,161)
Infrastructure (899,640) (51,774) - (951,414)
Total Accumulated Depreciation (1,134,807) (78,452) - (1,213,259) Total Depreciable Assets, Net 2,756,604 (26,702) - 2,729,902 Total Capital Assets, Net 3,339,332 $ 227,244 $ - $ 3,566,576 $ Depreciation expense was charged in the following functions in the statement of activities:

General government 26,678 $
Public works 51,774
Total 78,452 $
A. Description of Self-Insurance Pool Pursuant to Joint Powers Agreement The City of Bradbury is a member of the California Jo
Authority is composed of 123 California public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq. The purpose of the Authority is to arrange and administer programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group purchased insurance for property and other lines of coverage. The California JPIA began covering claims of its members in 1978. Each member government has an elected official as its representative on the Board of Directors. The Board operates through a nine-member Executive Committee.

B. Primary Self-Insurance Programs of the Authority
Each member pays an annual contribution at the beginning of the coverage period. A retrospective adjustment is then conducted annually thereafter, for coverage years 2012-13 and prior. Coverage years 2013-14 and forward are not subject to routine annual retrospective adjustment. The total funding requirement for primary selfinsurance programs is based on an actuarial analysis. Costs are allocated to individual agencies based on payroll and claims history, relative to other members of the risk-sharing pool.

City of Bradbury
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
34 B. Primary Self-Insurance Programs of the Authority (Continued) Primary Liability Program
Claims are pooled separately between police and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $100,000 for each occurrence and is evaluated as a percentage of the ) The second layer of losses includes incurred costs from $100,000 to $500,000 for each occurren
within the second layer. (4) Incurred costs from $500,000 to $50 million, are distributed based on the outcome of cost allocation within the first and second loss layers.

The overall coverage limit for each member, including all layers of coverage, is $50 million per occurrence.

Subsidence losses also have a $50 million per occurrence limit. The coverage structure is composed of a combination of pooled self-insurance, reinsurance, and excess insurance. Additional information concerning the coverage structure is availa https://cjpia.org/coverage/risk-sharing-pools/.

Claims are pooled separately between public safety (police and fire) and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $75,000 for each occurrence and is sts within the first layer. (3) The second layer of losses includes incurred costs from $75,000 to $200,000 for each occurrence and is evaluated as a percentage of the (4) Incurred costs from $200,000 to statutory limits are distributed based on the outcome of cost allocation within the first and second loss layers. on per occurrence, with reinsurance to statutory limits million. Coverage from $1 million to $5 million is purch Liability losses from $5 million to $10 million are pooled among members.

C. Purchased Insurance
Pollution Legal Liability Insurance
The City of Bradbury participates in the pollution legal liability insurance program which is available through the Authority. The policy covers sudden and gradual pollution of scheduled property, streets, and storm drains owned by the City of Bradbury. Coverage is on a claims-made basis. There is a $250,000 deductible. The Authority has an aggregate limit of $20 million.

Property Insurance
The City of Bradbury participates in the all-risk property protection program of the Authority. This insurance protection is underwritten by several insurance companies. City of Bradbury property is currently insured according to a schedule of covered property submitted by the City of Bradbury to the Authority. City of Bradbury property currently has all-risk property insurance protection in the amount of $66,420,545. There is a $10,000 deductible per occurrence except for non-emergency vehicle insurance which has a $2,500 deductible.

City of Bradbury
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
35 C. Purchased Insurance (Continued)
Crime Insurance
The City of Bradbury purchases crime insurance coverage in the amount of $3,000,000 with a $2,500 deductible.

The fidelity coverage is provided through the Authority.

D. Adequacy of Protection
During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or insured liability coverage in 2020-2021.

The City had made available to its employees a deferred compensation plan, whereby employees authorize the City to withhold funds from salaries to be invested in individual investment accounts. Funds may be withdrawn by participants upon termination of employment or retirement. The City makes no contributions under the Plan. The amount held by trustees for the employees at June 30, 2021 was $42,283. The Trustee invests compensation deferred by employees in various investment options selected by the employee and retains title to all accumulated funds until they are paid to the employee or other beneficiary. Plan assets were established in the trust arrangement specified by Internal Revenue Code Section 457(g). The plan assets
General Information about the Pension Plan
Plan Description
employer defined benefit pension plan. CalPERS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. CalPERS acts as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by State statute and City ordinance. Copies of the CalPERS annual financial report may be obtained from their website at www.calpers.ca.gov under Forms and Publications.

Employees Covered by Benefit Terms
At June 30, 2019, the valuation date, the following employees were covered by the benefit terms:

Classic PEPRA
Active employees 2 1
Transferred and terminated employees 6 -
Retired Employees and Beneficiaries 1 -
Total 1 9
Miscellaneous
City of Bradbury
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
36 General Information about the Pension Plan (Continued) Benefit Provided
CalPERS provide retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. A classic CalPERS member becomes eligible for Service Retirement upon attainment of age 60 with at least 5 years of credited service. PEPRA miscellaneous members become eligible for service retirement upon attainment of age 62 with at least 5 years of service. The service retirement benefit is a monthly allowance equal to the product of the benefit factor, years of service, and final compensation. The final compensation is the monthly average of the member's highest 36 full-time equivalent monthly pay. Retirement benefits for miscellaneous employees are calculated as 2.0% of the average final 60-month compensation.

Participant is eligible for non-industrial disability retirement if becomes disabled and has at least 5 years of credited service. There is no special age requirement. The standard non-industrial disability retirement benefit is a monthly allowance equal to 1.8 percent of final compensation, multiplied by service. Industrial disability benefits are not offered to miscellaneous employees.

An employee's beneficiary may receive the basic death benefit if the employee dies while actively employed. The employee must be actively employed with the City to be eligible for this benefit. An employee's survivor who is eligible for any other pre-retirement death benefit may choose to receive that death benefit instead of this basic death benefit. The basic death benefit is a lump sum in the amount of the employee's accumulated contributions, where interest is currently credited at 7.5 percent per year, plus a lump sum in the amount of one month's salary for each completed year of current service, up to a maximum of six months' salary. For purposes of this benefit, one month's salary is defined as the member's average monthly full-time rate of compensation during the 12 months preceding death.

Upon the death of a retiree, a one-time lump sum payment of $500 will be made to the retiree's designated survivor(s), or to the retiree's estate.

Benefit terms provide for annual cost-of-living adjustments allowance. Beginning the second calendar year after the year of retirement, retirement and survivor allowances will be annually adjusted on a compound basis by 2 percent.

Contributions
contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributi annual actuarial valuation process. The Public agency cost-sharing plans covered by either the Safety risk pools, the the year, and any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

For the measurement period ended June 30, 2020, the active employee and em miscellaneous plan were 7.000% and 8.081%, respectively; and for PEPRA miscellaneous plan were 6.75% and

6.985% of annual payroll, respectively.

City of Bradbury
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
37 Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pension
Actuarial Methods and Assumptions Used to Determine Total Pension Liability The June 30, 2019 were rolled forward to determine the June 30, 2020 total pension liabilities, based on the following actuarial methods and assumptions:

Actuarial Cost Method Entry Age Normal
Actuarial Assumptions:

Discount Rate 7.15%
Inflation 2.50%
Salary Increases Varies by Entry Age and Service
Post Retirement Benefit Increase The lesser of contract COLA or 2.50% until Purchasing Power Protection Allowance floor on purchasing power applies, 2.50% thereafter.
1The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from December 2017 that can be found on the CalPERS website.

Long-Term Expected Rate of Return
The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all of the eometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.

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

New Strategic Real Return Real Return
Asset Class1 Allocation Years 1-102 Years 11+3 Global Equity 50.00% 4.80% 5.98% Fixed Income 28.00% 1.00% 2.62%
Inflation Assets 0.00% 0.77% 1.81%
Private Equity 8.00% 6.30% 7.23%
Real Assets 13.00% 3.75% 4.93%
Liquidity 1.00% 0.00% -0.92%
100.00%
(1) me is included in Global Debt Securities; Liquidity is included in Short-term Investments; Inflation Assets are included in both Global Equity Securities and Global Debt Securities. (2) An expected inflation of 2.00% used for this period. (3) An expected inflation of 2.92% used for this period.

City of Bradbury
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
38 Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pension (Continued)
Discount Rate
The discount rate used to measure the total pension liability was 7.15%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, th ected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability. t Pension Liability to Changes in the Discount Rate
e net pension liabilities of the Plan as of the measurement date at June 30, 2020, calculated using
the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (6.15%) or 1 percentage-point higher (8.15%) than the current rate:

Discount Rate Current Discount Discount Rate
-1% (6.15%) Rate (7.15%) + 1% (8.15%)
Miscellaneous $ 118,908 189,886 $ 60,261 $
Plan's Net Pension Liability/(Asset)
Pension Plan Fiduciary Net Position
available in the separately issued CalPERS financial
website under Forms and Publications.

Proportionate Share of Net Pension Liability and Pension Expense the risk pool collective net pension liability over the measurement period:

Plan Total Pension Plan Fiduciary Net Plan Net Pension
Liability Position Liability/(Asset)
Miscellaneous
Balance at: 6/30/19 (Valuation date) 1,088,043 $ 996,752 $ 91,291 $ Balance at: 6/30/20 (Measurement date) 1,173,067 1,054,159 118,908 Net Changes during 2019-20 85,024 $ 57,407 $ 27,617 $
Increase (Decrease)
City of Bradbury
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
39 Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pension (Continued)
Proportionate Share of Net Pension Liability and Pension Expense (Continued) The following is the approach established by the plan actuary to allocate the net pension liability and pension expense to the individual employers within the risk pool.
(1) share, total amounts of liabilities and assets are first calculated for the risk pool as a whol
(2) Using standard actuarial roll forward methods, the risk pool TPL is then computed at the measurement date (June 30, 2020). Risk pool FNP at the measurement date is then subtracted from this number to compute the NPL for the risk pool at the measurement date. For purposes of FNP in this step and any later reference less the sum of all additional side fund (or unfunded liability) contributions made by all employers during the measurement period (2019-2020).
(3) ated at the valuation date. TPL is allocated based on accrued liability. FNP is allocated b
market value assets.
(4) TPL and FNP as of the valuation date from (3) by the (5) the risk pool TPL generated in (2) multiplied by the easurement Date is equal to the FNP generated in (2)
multiplied by the FNP ratio generated in (4) plus any additional side fund (or unfunded liability) contributions made by the employer on behalf of the plan during the measurement period. (6) fference between the TPL and FNP calculated in (5).

Deferred outflows of resources, deferred inflows of resour share of contributions during the measurement period.
e net pension liability was as follows:

Miscellaneous
Plan
June 30, 2019 0.00089%
June 30, 2020 0.00109%
Change - Increase (Decrease) 0.00020%
City of Bradbury
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
40 Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pension (Continued)
Proportionate Share of Net Pension Liability and Pension Expense (Continued) For the year ended June 30, 2021, the City recognized pension expense of $56,553 for the miscellaneous plan.

The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized over 5-years straight line. All other amounts are amortized straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactive and retired) as of the beginning of the measurement period.
calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired) in the risk pool. The EARSL for risk pool for the 2019-2020 measurement period is 3.8 years, which was obtained by dividing the total service years of 548,581 (the sum of remaining service lifetimes of the active employees) by 145,663 (the total number of participants: active, inactive, and retired).

At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred outflows Deferred inflows
of Resources of Resources
Pension contribution made after measurement date 24,748 $ - $ Changes of Assumptions - (848)
Difference between Expected and Actual Experience 6,127 - Actual earnings in excess of expected earning
on pension investments 822 -
Adjustment due to differences in proportions 31,507 -
Difference between employer's actual contributions
and employer's proportionate share of contributions - (37,149) Total 63,204 $ (37,997) $
Miscellaneous Plan
For the year ended June 30, 2021, deferred outflows of resources related to pensions was $33,118, resulting from te, will be recognized as a reduction of the collective net pension liability in the year ending June 30, 2021.

Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

Year Ending June 30, M iscellaneous Plan
2022 1,423 $
2023 (9,032) 2024 6,373 2025 1,695
2026 - Thereafter -
Total 459 $
City of Bradbury
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
41 At June 30, 2021, fund balances are classified in the governmental funds as follows:

Public Nonmajor
General Transportation Governmental
Fund Sewer UUT COPS Fund (Prop A) Funds Total
Nonspendable:

Prepaid items 10,340 $ - $ - $ - $ - $ - $ 10,340 $
Restricted:

Covid 19 172,798 - - - - - 172,798
COPS - - - 54,748 - - 54,748
Gas Tax - - - - - 14,357 14,357
Proposition C - - - - - 19,683 19,683
Country Park Grant - - - - - 9,165 9,165
Proposition A - - - - 1,426 - 1,426
Measure R - - - - - 66,034 66,034
STPL - - - - - 1,046 1,046
Recycling - - - - - 596 596
Fire Grant - - - - - - -
Measure M - - - - - 41,739 41,739
TDA - - - - - 1,241 1,241
SB 1 Gas Tax - - - - - 43,583 43,583
Total Restricted 172,798 - - 54,748 1,426 197,444 426,416 Committed:

Sewer improvements
and operations - 665,860 - - - - 665,860
Clean water - - 602,005 - - - 602,005
Total Committed - 665,860 602,005 - - - 1,267,865
Assigned:

Economic uncertainties 1,000,000 - - - - - 1,000,000
Unassigned - 2,102,863 - - - (6,179) 2,096,684
Total Fund Balances $ 665,860 3,286,001 $ 602,005 $ 54,748 $ 1,426 $ 191,265 $ 4,801,305 $ Special Revenue Funds
City of Bradbury
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
42 In order to prudently protect its fiscal solvency, the City maintains a minimum assigned fund balance of $1,000,000 as reserves for economic uncertainties. The reserve is important in order to:
the challenges of a changing environment.
e that may result in reduction of revenues.
rating agencies and the financial community.

The nature and purpose of each reserve is described below:

A. Infrastructure - funds set aside for one-time infrastructure expenditures relating to City owned infrastructure repairs such as streets, sewers or other City facilities.

B. Economic changes, natural disaster or other catastrophic events - funds set aside for local disasters, emergencies, and / or unexpected economic changes that adversely impact the City's financial position.

This reserve was not formally adopted by the City Council.

Excess of Expenditures over Appropriations
Excess
Expenditures over
Appropriations Expenditures Appropriations
Major Funds:

General Fund
Public safety 140,121 $ 148,285 $ (8,164) $
Utility Users' Tax Special Revenue Fund
Public works 42,230 91,186 (48,956)
Public Transportation Fund (Prop A)
Special Revenue Fund
Public works 9,000 60,000 (51,000)
Nonmajor Governmental Funds:

Recycling Grant Special Revenue Fund
Public works 5,000 7,200 (2,200)
TDA Special Revenue Fund
Public works - 8,027 (8,027)
Gas Tax Special Revenue Fund
Public works 22,000 28,766 (6,766)
Proposition C Special Revenue Fund
Public works 900 8,826 (7,926)
The excess was due to higher than anticipated expenditures that exceeded the approved appropriations. The Council was informed of the excesses through monthly reports, and that the expenditures were higher than yearly budgeted amounts due to unforeseen expenses. However, the Council did not formally increase the budgetary appropriations since the revenues were higher than expected and they exceeded the total expenditures.

City of Bradbury
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
43 A. Grants
The City participates in Federal and State grant programs. These programs are subject to further examination by the grantors. Expenditures which may be disallowed by the granting agencies, if any, cannot be determined at this time. The City expects such amounts, if any, to be immaterial.

B. Litigation
The City has not been named in any lawsuit that has a potentially material effect on its financial position. There is one matter involving a threat of litigation, which has b outcome of this matter if litigation is commenced is not presently determinable, in the opinion of management of the City, based in part on the advice of counsel, the resolution of this matter is not expected to have a material adverse effect on the financial position or results of operations of the City. 44 This page intentionally left blank.

REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED)
45 This page intentionally left blank.
46 Variance with
Original Final Actual Final Budget
REVENUES:

Taxes 738,200 $ 738,200 $ 814,363 $ 76,163 $
Licenses and permits 147,000 147,000 99,701 (47,299)
Use of money and property 51,100 51,100 6,991 (44,109)
Intergovernmental 12,000 12,000 237,819 225,819
Charges for current services 240,100 240,100 379,000 138,900 Other revenue 6,220 6,220 55,485 49,265
Total revenues 1,194,620 1,194,620 1,593,359 398,739
EXPENDITURES:

Current:

General government 772,674 844,134 824,851 19,283
Public safety 140,121 140,121 148,285 (8,164)
Parks and recreation 36,000 36,000 25,819 10,181
Total expenditures 1,020,255 948,795 998,955 21,300
REVENUES OVER (UNDER) EXPENDITURES 174,365 245,825 594,404 420,039 OTHER FINANCING USES:

Transfers in - - 44,815 44,815
Transfers out (240,000) (240,000) (284,815) (44,815)
Total other financing uses (240,000) (240,000) (240,000) - Net change in fund balance $ (65,635) 5,825 $ 354,404 420,039 $ FUND BALANCE:

Beginning of year 2,931,597
End of year $ 3,286,001
Budget
City of Bradbury
Required Supplementary Information (Unaudited)
For the Year Ended June 30, 2021
Budgetary Comparison Schedule
General Fund
47 Variance with
Original Final Actual Final Budget
REVENUES:

Use of money and property - $ - $ 6,319 $ 6,319 $
Intergovernmental 11,000 11,000 67,433 56,433
Total revenues 11,000 11,000 73,752 62,752
EXPENDITURES:

Current:

General Government 40,000 40,000 35,160 4,840
Capital outlay 673,396 673,396 305,696 367,700
Total expenditures 713,396 713,396 340,856 372,540
REVENUES OVER (UNDER) EXPENDITURES (702,396) (702,396) (267,104) 435,292 OTHER FINANCING SOURCES:

Transfers in 240,000 240,000 240,000 -
Total other financing sources 240,000 240,000 240,000 - Net change in fund balance $ (462,396) (462,396) $ (27,104) 435,292 $ FUND BALANCE:

Beginning of year 692,964
End of year $ 665,860
Budget
City of Bradbury
For the Year Ended June 30, 2021
Required Supplementary Information (Unaudited)
Budgetary Comparison Schedule (Continued)
Sewer Special Revenue Fund
48 Variance with
Original Final Actual Final Budget
REVENUES:

Use of money and property 10,000 $ 10,000 $ 6,323 $ (3,677) $ Total revenues 10,000 10,000 6,323 (3,677)
EXPENDITURES:

Current:

Public works - 42,230 91,186 (48,956)
Total expenditures 42,230 - 91,186 (48,956)
Net change in fund balance $ (32,230) 10,000 $ (84,863) (52,633) $ FUND BALANCE:

Beginning of year 686,868
End of year 602,005 $
Budget
City of Bradbury
Required Supplementary Information (Unaudited)
For the Year Ended June 30, 2021
Budgetary Comparison Schedule (Continued)
Utility Users Tax (UUT) Special Revenue Fund
49 Variance with
Original Final Actual Final Budget
REVENUES:

Use of money and property 3,000 $ 3,000 $ 2,201 $ (799) $ Intergovernmental 100,000 100,000 70,054 (29,946)
Total revenues 103,000 103,000 72,255 (30,745)
EXPENDITURES:

Current:

Public safety 103,500 103,500 70,054 33,446
Total expenditures 103,500 103,500 70,054 33,446
Net change in fund balance $ (500) (500) $ 2,201 2,701 $ FUND BALANCE:

Beginning of year 52,547
End of year 54,748 $
City of Bradbury
Required Supplementary Information (Unaudited)
For the Year Ended June 30, 2021
Budget
Budgetary Comparison Schedule (Continued)
Citizens' Option for Public Safety (COPS) Special Revenue Fund 50 Variance with
Original Final Actual Final Budget
REVENUES:

Use of money and property 300 $ 300 $ 445 $ 145 $
Intergovernmental 23,619 23,619 21,669 (1,950)
Total revenues 23,919 23,919 22,114 (1,805)
EXPENDITURES:

Current:

Public works 9,000 9,000 60,000 (51,000)
Total expenditures 9,000 9,000 60,000 (51,000)
Net change in fund balance $ 14,919 14,919 $ (37,886) (52,805) $ FUND BALANCE:

Beginning of year 39,312
End of year 1,426 $
Budget
City of Bradbury
Required Supplementary Information (Unaudited)
Budgetary Comparison Schedule (Continued)
For the Year Ended June 30, 2021
Public Transportation Fund (Prop A) Special Revenue Fund 51 This page intentionally left blank.
52 Budget and Budgetary Accounting
The City adopts an annual budget prepared on the modified accrual basis of accounting for the governmental funds. The City Manager or his designee is authorized to transfer budgeted amounts between the accounts of any department. Revisions that alter the total appropriations of any department or fund must be approved by City Council. Expenditures may not legally exceed appropriations at the program level. Budgets were not adopted for the STPL Special Revenue Fund.

City of Bradbury
Required Supplementary Information (Unaudited)
For the Year Ended June 30, 2021
Budgetary Information
53 Measurement Date 6/30/20151
June 30, 2016 June 30, 2017 June 30, 2018 June 30, 2019 City's Proportion of the Net Pension Liability 0.00256% 0.00077% 0.00077% 0.00070% 0.00089% City's Proportionate Share of the Net Pension Liability 175,694 $ 66,246 $ 76,419 $ 67,418 $ 91,291 $ City's Covered Payroll 167,611 203,105 185,286 200,481 213,242 City's Proportionate Share of the Net Pension Liability as a Percentage of Its Covered Payroll 104.82% 32.62% 41.24% 33.63% 42.81% Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Total Pension Liability 78.51% 92.47% 92.41% 93.76% 91.53% California Public Employees' Retirement System ("CalPERS") Miscellaneous Plan 1 Historical information is presented only for measurement periods for which GASB No. 68 is presented for periods after GASB 68 implementation in 2013-14. Additional years of information will be displayed as it becomes available.

City of Bradbury
Required Supplementary Information (Unaudited)
Schedule of the City's Proportionate Share of the Net Pension Liability and Related Ratios For the Year Ended June 30, 2021
Last Ten Fiscal Years
54 Measurement Date June 30, 2020
City's Proportion of the Net Pension Liability 0.00109% City's Proportionate Share of the Net Pension Liability 118,908 $ City's Covered Payroll 220,732
City's Proportionate Share of the Net Pension Liability as a Percentage of Its Covered Payroll 53.87%
Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Total Pension Liability 89.86%
California Public Employees' Retirement System ("CalPERS") Miscellaneous Plan City of Bradbury
Required Supplementary Information (Unaudited)
Schedule of the City's Proportionate Share of the Net Pension Liability and Related Ratios (Continued) For the Year Ended June 30, 2021
Last Ten Fiscal Years
55 Fiscal Year 2014-151
2015-16 2016-17 2017-18 2018-19
Actuarially Determined Contribution $ 13,626 29,107 $ 11,319 $ 14,550 $ 17,974 $ Contribution in Relation to the
Actuarially Determined Contribution2 (163,293) (29,107) (11,319) (14,550) (17,974) Contribution Deficiency (Excess) - $ (149,667) $ - $ - $ - $ Covered Payroll
2 $ 203,105 167,611 $ 185,286 $ 200,481 $ 213,242 $
Contributions as a Percentage of
Covered Payroll 17.37% 6.71% 6.11% 7.26% 8.43%
Changes of Assumptions: In 2020 and 2019, there were no changes of assumptions. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate. In 2017, the discount rate was reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense.) In 2014, amounts reported were based on the 7.5 percent discount rate.

California Public Employees' Retirement System ("CalPERS") Miscellaneous Plan 1 Historical information is presented only for measurement periods for which GASB No. 68 is presented for periods after GASB 68 implementation in 2013-14. Additional years of information will be displayed as it becomes available. 2Payroll from prior year $220,732 was assumed to increase by 2.75 percent payroll growth assumption from 2019-20 to 2020-21.

Notes to Schedule
Change in Benefit Terms: There were no changes to benefit terms.

City of Bradbury
Required Supplementary Information (Unaudited)
Schedule of the City's Contributions - Pensions
For the Year Ended June 30, 2021
Last Ten Fiscal Years
56 Fiscal Year 2019-20 2020-21
Actuarially Determined Contribution $ 24,748 18,537 $
Contribution in Relation to the
Actuarially Determined Contribution2 (24,748) (18,537)
Contribution Deficiency (Excess) - $ - $
Covered Payroll
, $ 226,802 220,732 $
Contributions as a Percentage of
Covered Payroll 8.40% 10.91%
City of Bradbury
Required Supplementary Information (Unaudited)
Schedule of the City's Contributions - Pensions (Continued) For the Year Ended June 30, 2021
Last Ten Fiscal Years
California Public Employees' Retirement System ("CalPERS") Miscellaneous Plan 57 This page intentionally left blank.
58 SUPPLEMENTARY INFORMATION
59 This page intentionally left blank.
60 SPECIAL REVENUE FUNDS:

Fire Grant Special Revenue Fund - To account for the receipt and disbursement of grant funds received from the U.S. Department of Forestry for brush clearance.

SB1 Gas Tax Special Revenue Fund - To account for the receipt and disbursement of funds received from the Road Repair and Accountability Act of 2017. These funds must be spent for local streets and roads.

NONMAJOR GOVERNMENTAL FUNDS
County Park Grant Special Revenue Fund - To account for the park grants provided by state and county agencies to build the recreational park located behind City Hall.

Gas Tax Special Revenue Fund - To account for the receipt and disbursement of gas tax subventions from the State of California.

Cities are allocated a share of the revenues derived by the State from taxes on gasoline, which must be spent on construction, improvement and maintenance of public streets and street engineering services.

Surface Transportation Program Local (STPL) Special Revenue Fund - To account for the receipt and disbursement of funds received from the State of California through the MTA and must be used for street improvements on certain major streets within the City.

Recycling Grant Special Revenue Fund - To account for the receipt and disbursement of funds received from the State of California for programs that promote the recycling of waste materials.

Measure R Special Revenue Fund - To account for the receipt and disbursement of funds form Los Angeles County which were created by a voter approved sales tax in 2008. These funds are allocated by Metropolitan Transportation Authority (MTA) to fund street projects.

Measure M Special Revenue Fund - To account for the receipt and disbursement of funds form Los Angeles County which were created by a voter approved sales tax in 2016. These funds are allocated by MTA to fund street projects.

Measure W Special Revenue Fund - To account for the receipt and disbursement of funds form Los Angeles County which were created by a voter approved sales tax in 2016. This is funded by a parcel tax of 2.5 cents per square foot of impermeable areas.

TDA Special Revenue Fund - To account for the receipt and distribution of funds allocated by MTA originating from the Transportation Development Act, Article 3 for the planning and construction of pedestrian and bicycle facilities.

Proposition C Special Revenue Fund - To account for the receipt and disbursement of a portion of the ½ cent sales tax approved by the voters in 1982 and 1990. Approximately 20% of the monies generated by the tax are returned to local agencies to be used for 61 Recycling
County Park Measure R STPL Grant
Grant Fund Fund Fund Fund
ASSETS
Cash and investments 9,160 $ 65,998 $ 1,045 $ 6,256 $
Accounts receivable - - - -
Taxes receivable - - - -
Interest receivable 5 36 1 3
Total assets $ 66,034 9,165 $ 1,046 $ 6,259 $

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities - $ - $ - $ - $ Unearned revenues - - - 5,663
Due to other funds - - - -
Total liabilities - - - 5,663
Fund Balances:

Restricted 9,165 66,034 1,046 596
Unassigned (deficit) - - - -
Total fund balances 66,034 9,165 1,046 596
Total liabilities and fund balances $ 66,034 9,165 $ 1,046 $ 6,259 $ (Continued)
Special Revenue Funds
City of Bradbury
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2021
62 Fire Grant Measure M TDA Gas Tax
Fund Fund Fund Fund
ASSETS
Cash and investments - $ 41,717 $ 827 $ 14,546 $
Accounts receivable - - - -
Taxes receivable - - 413 2,570
Interest receivable - 22 1 8
Total assets $ 41,739 - $ 1,241 $ 17,124 $

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities - $ - $ - $ 2,767 $ Unearned revenues - - - -
Due to other funds 6,179 - - -
Total liabilities - 6,179 - 2,767
Fund Balances:

Restricted - 41,739 1,241 14,357
Unassigned (deficit) (6,179) - - -
Total fund balances 41,739 (6,179) 1,241 14,357
Total liabilities and fund balances $ 41,739 - $ 1,241 $ 17,124 $ (Continued)
Special Revenue Funds
City of Bradbury
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2021
63 Total
Nonmajor
Proposition C SB 1 Gas Tax Measure W Governmental
Fund Fund Fund Funds
ASSETS
Cash and investments 19,673 $ 40,008 $ - $ 199,230 $
Accounts receivable - - - -
Taxes receivable - 3,554 - 6,537
Interest receivable 10 21 - 107
Total assets $ 43,583 19,683 $ - $ 205,874 $

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities - $ - $ - $ 2,767 $ Unearned revenues - - - 5,663
Due to other funds - - - 6,179
Total liabilities - - - 14,609
Fund Balances:

Restricted 19,683 43,583 - 197,444
Unassigned (deficit) - - - (6,179)
Total fund balances 43,583 19,683 - 191,265
Total liabilities and fund balances $ 43,583 19,683 $ - $ 205,874 $ (Concluded)
Special Revenue Funds
City of Bradbury
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2021
64 County Park Measure R STPL Recycling Grant
Grant Fund Fund Fund Fund
REVENUES:

Use of money and property 539 $ 561 $ 11 $ 99 $
Intergovernmental 324 13,499 - 7,101
Total revenues 14,060 863 11 7,200
EXPENDITURES:

Current:

Public works - - - 7,200
Total expenditures - - - 7,200

EXCESS OF REVENUE OVER (UNDER)
EXPENDITURES 14,060 863 11 -

OTHER FINANCING USES
Transfers out - - - -
Net change in fund balances 14,060 863 11 -
FUND BALANCES:

Beginning of year 8,302 51,974 1,035 596
End of year $ 66,034 9,165 $ 1,046 $ 596 $
(Continued)
Special Revenue Fund
City of Bradbury
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds
For the Year Ended June 30, 2021
65 Fire Grant Measure M TDA Gas Tax
Fund Fund Fund Fund
REVENUES: $
Use of money and property 50 $ 335 $ 10 $ 136 $
Intergovernmental 20,148 15,295 9,014 28,435
Total revenues 15,630 20,198 9,024 28,571
EXPENDITURES:

Current:

Public works 32,901 - 8,027 28,766
Total expenditures - 32,901 8,027 28,766

EXCESS OF REVENUE OVER (UNDER)
EXPENDITURES 15,630 (12,703) 997 (195)

OTHER FINANCING USES
Transfers out - - - -
Net change in fund balances 15,630 (12,703) 997 (195)
FUND BALANCES:

Beginning of year 6,524 26,109 244 14,552
End of year $ 41,739 (6,179) $ 1,241 $ 14,357 $
(Continued)
Special Revenue Fund
City of Bradbury
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2021
66 Total
Nonmajor
Proposition C SB 1 Gas Tax Measure W Governmental
Fund Fund Fund Funds
REVENUES:

Use of money and property 171 $ 412 $ - $ 2,324 $
Intergovernmental 17,974 19,370 50,506 181,666
Total revenues 19,782 18,145 50,506 183,990
EXPENDITURES:

Current:

Public works 8,826 - 50,506 136,226
Total expenditures - 8,826 50,506 136,226

EXCESS OF REVENUE OVER (UNDER)
EXPENDITURES 19,782 9,319 - 47,764

OTHER FINANCING USES
Transfers out - - - -
Net change in fund balances 19,782 9,319 - 47,764
FUND BALANCES:

Beginning of year 10,364 23,801 - 143,501
End of year $ 43,583 19,683 $ - $ 191,265 $
(Concluded)
Nonmajor Governmental Funds
For the Year Ended June 30, 2021
City of Bradbury
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) 67 Variance with
Original Final Actual Final Budget
REVENUES:

Use of money and property 100 $ 100 $ 539 $ 439 $
Intergovernmental - - 324 324
Total revenues 100 100 863 763
EXPENDITURES:

Current:

Public works 1,000 1,000 - 1,000
Total expenditures 1,000 1,000 - 1,000
Net Change in Fund Balance $ (900) (900) $ 863 1,763 $
FUND BALANCE:

Beginning of year 8,302
End of year $ 9,165
City of Bradbury
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual County Park Grant Special Revenue Fund
For the Year Ended June 30, 2021
Budget
68 Variance with
Original Final Actual Final Budget
REVENUES:

Use of money and property 800 $ 800 $ 561 $ (239) $
Intergovernmental 14,660 14,660 13,499 (1,161)
Total revenues 15,460 15,460 14,060 (1,400)
Net Change in Fund Balance $ 15,460 15,460 $ 14,060 (1,400) $ FUND BALANCE:

Beginning of year 51,974
End of year $ 66,034
City of Bradbury
For the Year Ended June 30, 2021
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual Measure R Special Revenue Fund
Budget
69 Variance with
Original Final Actual Final Budget
REVENUES:

Use of money and property 50 $ 50 $ 99 $ 49 $
Intergovernmental 5,000 5,000 7,101 2,101
Total revenues 5,050 5,050 7,200 2,150
EXPENDITURES:

Current:

Public works 5,000 5,000 7,200 (2,200)
Total expenditures 5,000 5,000 7,200 (2,200)
Net Change in Fund Balance $ 50 50 $ - (50) $
FUND BALANCE:

Beginning of year 596
End of year $ 596
City of Bradbury
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual Recycling Grant Special Revenue Fund
For the Year Ended June 30, 2021
Budget
70 Variance with
Original Final Actual Final Budget
REVENUES:

Use of money and property 150 $ 150 $ 50 $ (100) $
Intergovernmental 45,000 45,000 20,148 (24,852)
Total revenues 45,150 45,150 20,198 (24,952)
EXPENDITURES:

Current:

Public works 50,000 50,000 32,901 17,099
Total expenditures 50,000 50,000 32,901 17,099
Net Change in Fund Balance $ (4,850) (4,850) $ (12,703) (7,853) $ FUND BALANCE:

Beginning of year 6,524
End of year (6,179) $
City of Bradbury
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual Fire Grant Special Revenue Fund
For the Year Ended June 30, 2021
Budget
71 Variance with
Original Final Actual Final Budget
REVENUES:

Use of money and property 300 $ 300 335 $ 35 $
Intergovernmental 16,005 16,005 15,295 (710)
Total revenues 16,305 16,305 15,630 (675)
Net Change in Fund Balance $ 16,305 16,305 15,630 (675) $ FUND BALANCE:

Beginning of year 26,109
End of year 41,739 $
City of Bradbury
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual Measure M Special Revenue Fund
For the Year Ended June 30, 2021
Budget
72 Variance with
Original Final Actual Final Budget
REVENUES:

Use of money and property - $ - $ 10 $ 10 $
Intergovernmental 5,000 5,000 9,014 4,014
Total revenues 5,000 5,000 9,024 4,024
EXPENDITURES:

Current:

Public works - - 8,027 (8,027)
Capital outlay 5,000 5,000
Total expenditures 5,000 5,000 8,027 (8,027)
Net Change in Fund Balance $ - - $ 997 (4,003) $
FUND BALANCE:

Beginning of year 244
End of year 1,241 $
City of Bradbury
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual TDA Special Revenue Fund
For the Year Ended June 30, 2021
Budget
73 Variance with
Original Final Actual Final Budget
REVENUES:

Use of money and property - $ - $ 136 $ 136 $
Intergovernmental 23,700 23,700 28,435 4,735
Total revenues 23,700 23,700 28,571 4,871
EXPENDITURES:

Current:

Public works 22,000 22,000 28,766 (6,766)
Total expenditures 22,000 22,000 28,766 (6,766)
Net Change in Fund Balance $ 1,700 1,700 $ (195) (1,895) $ FUND BALANCE:

Beginning of year 14,552
End of year $ 14,357
Budget
City of Bradbury
Gas Tax Special Revenue Fund
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual For the Year Ended June 30, 2021
74 Variance with
Original Final Actual Final Budget
REVENUES:

Use of money and property - $ - $ 171 $ 171 $
Intergovernmental 18,700 18,700 17,974 (726)
Total revenues 18,700 18,700 18,145 (555)
EXPENDITURES:

Current:

Public works 900 900 8,826 (7,926)
Total expenditures 900 900 8,826 (7,926)
REVENUES OVER (UNDER) EXPENDITURES 17,800 17,800 9,319 (8,481) Net Change in Fund Balance $ 17,800 17,800 $ 9,319 (8,481) $ FUND BALANCE:

Beginning of year 10,364
End of year $ 19,683
Budget
City of Bradbury
Proposition C Special Revenue Fund
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual For the Year Ended June 30, 2021
75 Variance with
Original Final Actual Final Budget
REVENUES:

Use of money and property - $ - $ 412 $ 412 $
Intergovernmental 13,500 13,500 19,370 5,870
Total revenues 13,500 13,500 19,782 6,282
NET CHANGE IN FUND BALANCE $ 13,500 13,500 $ 19,782 6,282 $ FUND BALANCE:

Beginning of year 23,801
End of year 43,583 $
City of Bradbury
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual SB 1 Gas Tax Special Revenue Fund
For the Year Ended June 30, 2021
Budget
76 Variance with
Original Final Actual Final Budget
REVENUES:

Intergovernmental 60,000 $ 60,000 $ 50,506 $ (9,494) $
Total revenues 60,000 60,000 50,506 (9,494)
EXPENDITURES:

Current:

Public works 60,000 60,000 50,506 9,494
Total expenditures 60,000 60,000 50,506 9,494
NET CHANGE IN FUND BALANCE $ - - $ - - $
FUND BALANCE:

Beginning of year -
End of year - $
City of Bradbury
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual Measure W Special Revenue Fund
For the Year Ended June 30, 2021
Budget
77 This page intentionally left blank.
78 City of Bradbury
Bradbury, California
Applying Agreed-Upon Procedures to
Appropriations Limit Schedule
For the Year Ended June 30, 2021

INDEPEND

APPLYING AGREED-UPON PROCEDURES
To the Honorable Mayor and Members of City Council
of the City of Bradbury
Bradbury, California
We have performed the procedures enumerated below on the appropriation limit of the City of Bradbury, California for the Appropriation Limit
Schedule.

The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose in meeting the requirements of Section 1.5 of Article XIII-B of the California Constitution, which was agreed to by the City and the League of California Cities (as presented in the publication entitled Agreed-upon Procedures Applied to the Appropriations Limitation Prescribed by Article XIII-B of the California Constitution).

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

The procedures and associated findings are as follows:

1. We obtained the completed worksheets used by the City to calculate its appropriations limit for the year ended June 30, 2021, and verified that the limit and annual calculation factors were adopted by resolution of City Council. We also verified that the population and inflation options were selected by a recorded vote of City Council.

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

2. For the accompanying Appropriations Limit Schedule, to the total adjustments, and agreed the resulting
Finding: No exceptions were noted as a result of our procedures.

3. We agreed the current year information presented in the accompanying Appropriations Limit Schedule to corresponding information in worksheets used by the City.

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

4. We agreed the appropriations limit presented in the accompanying Appropriations Limit Schedule to the appropriations limit adopted by the City Council.

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

To the Honorable Mayor and Members of City Council
of the City of Bradbury
Bradbury, California

2 We were engaged by the City to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on the accompanying Appropriations Limit Schedule.

Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.

This report is intended solely for the information and use of the City Council and the management of the City and is not intended to be and should not be used by anyone other than these specified parties.

Santa Ana, California
August 30, 2022
City of Bradbury
Appropriations Limit Schedule
For the Year Ended June 30, 2021
3 Amount Source
A. Appropriations Limit FY 2019-2020 2,302,250 $ Prior year appropriation limit adopted by the City
B. Calculation Factors:
1) Population increase % 1.0373 California Department of Finance 2) Inflation increase % 0.9989 California Department of Finance 3) Total adjustment % 1.0362 (B1 x B2)
C. Annual Adjustment Increase 83,247 {(B3-1) x A}
D. Other Adjustments:
1) Loss responsibility (-) - N/A
2) Transfer to private (-) - N/A
3) Transfer to fees (-) - N/A
4) Assumed responsibility (+) - N/A
E. Total Adjustments 83,247 (C+D)
F. Appropriations Limit FY 2020-2021 2,385,497 $ (A+E)
See Accompanying Notes to Appropriations Limit Schedule.

City of Bradbury
Notes to Appropriations Limit Schedule
For the Year Ended June 30, 2021
4 ted Procedures Review
Under Article XIIIB of the California Constitution (the Gann Spending Limitation Initiative), California governmental agencies are restricted as to the amount of annual appropriations from proceeds of taxes. Effective for years beginning on or after July 1, 1990, under Section 1.5 of Article XIIIB, the annual calculation of the appropriations limit is subject to a limited procedures review in connection with the annual audit.

Under Section 10.5 of Article XIIIB, for fiscal years beginning on or after July 1, 1990, the appropriations limit is required to be calculated based on the limit for the fiscal year 1986-87, adjusted for the inflation and population factors discussed in Notes 3 and 4 below.

A California governmental agency may use as its population factor either the annual percentage change of the nge in population of the county where the jurisdiction is located. The factor adopted by the City for the year ended June 30, 2021, represents the annual percentage change in population for the County of Los Angeles.

A California governmental agency may use as its inflation factor either the annual percentage change in the 4th quarter per capita personal income (which percentage is supplied by the California Department of Finance) or the percentage change in the local assessment roll from the preceding year due to the change of local nonresidential construction. The factor adopted by the City for the year ended June 30, 2021, represents the annual percentage change in per capita personal income.

A California government agency may be required to adjust its appropriations limit when certain events occur, such as the transfer of responsibility for municipal services to, or from, another government agency or private entity.

The City had no such adjustments for the year ended June 30, 2021. 200 E. Sandpointe Avenue, Suite 600
Santa Ana, California 92707
August 30, 2022
To the Honorable Mayor and the Members of the City Council of the City of Bradbury
Bradbury, California
We have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Bradbury, California (the “City”) for the year ended June 30, 2021. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards and Government Auditing Standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated March 31, 2022. Professional standards also require that we communicate to you the following information related to our audit.

Significant Audit Matters
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 2 to the financial statements, the City implemented the following accounting standards:

GASB Statement No. 84, Fiduciary Activities. This statement establishes standards relating accounting and financial reporting for identifying and financial reporting of fiduciary activities. Those provisions are effective for reporting periods beginning after December 15, 2019, as amended by GASB Statement No. 95. Application of this statement was effective starting in fiscal year ending June 30, 2021. Application of this statement did not have a material effect on the City’s financial statements for the fiscal year ended June 30, 2021.

GASB Statement No. 90, Majority Equity Interests. This statement defines a majority equity interest and specifies that a majority equity interest in a legally separate organization should be reported as an investment if a government’s holding of the equity interest meets the definition of an investment. Those provisions are effective for reporting periods beginning after December 15, 2019. Application of this statement did not have a material effect on the City’s financial statements for the fiscal year ended June 30, 2021.

GASB Statement No. 93, Replacement of Interbank Offered Rates. This statement addresses those and other accounting and financial reporting implications that result from the replacement of London Interbank Offered Rate (LIBOR). The removal of LIBOR as an appropriate benchmark interest rate is effective for reporting periods ending after December 31, 2021. All other requirements of this Statement are effective for reporting periods beginning after June 15, 2020. Application of this statement did not have a material effect on the City’s financial statements for the fiscal year ended June 30, 2021.

GASB Statement No. 98, The Annual Comprehensive Financial Report. This Statement establishes the term annual comprehensive financial report and its acronym ACFR. That new term and acronym replace instances of comprehensive annual financial report and its acronym in generally accepted accounting principles for state and local governments. Those provision are effective for fiscal years ending after December 15, 2021. The City has elected early implementation of this statement. Application of this statement did not have a material effect on the City’s financial statements for the fiscal year ended June 30, 2021.

To the Honorable Mayor and Members of the City Council
of the City of Bradbury
Bradbury, California

No other new accounting policies were adopted and the application of existing policies was not changed during 2021.

We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.

Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimate(s) affecting the City’s financial statements were:
 Management’s estimate of the investment fair market value is based on information provided by the US Bank as the custodian for investments in negotiable certificates of deposit. We evaluated the key factors and assumptions used to develop the investment fair market value in determining that it is reasonable in relation to the financial statements taken as a whole.  Management’s estimate of the depreciation on capital assets is based on industry standard and past experience on actual useful life of the asset groups. We evaluated the key factors and assumptions used to develop the depreciation on capital assets in determining that it is reasonable in relation to the financial statements taken as a whole.  Management’s estimate of the net pension liabilities is based on the proportionate share of actuarial valuation on total pension liability and based on proportionate share of the fiduciary net position for CalPERS. We evaluated the key factors and assumptions used to develop the net pension liability in determining that it is reasonable in relation to the financial statements taken as a whole.

Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The most sensitive disclosure(s) affecting the financial statements were:
 Note 2 – Summary of Significant Accounting Policies
 Note 8 – Defined Benefit Pension Plans
 Note 10 – Other Required Disclosures
 Note 11 – Commitments and Contingencies
The financial statement disclosures are neutral, consistent, and clear.

Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.

Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to each opinion unit’s financial statements taken as a whole.

Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report.

We are pleased to report that no such disagreements arose during the course of our audit.

To the Honorable Mayor and Members of the City Council
of the City of Bradbury
Bradbury, California

Management Representations
We have requested certain representations from management that are included in the management representation letter dated August 30, 2022.

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

Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.

Other Matters
We applied certain limited procedures to the Budgetary Comparison Schedules – General Fund and Major Special Revenue Funds, the Schedule of the City’s Proportionate Share of the Net Pension Liability and Related Ratios, and the Schedule of the City’s Contributions – Pensions, which are Required Supplementary Information (“RSI”) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI.

We were engaged to report on the Combining and Individual Fund Financial Statements, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.

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

Very truly yours,
Santa Ana, California