Industry City Council
January 29, 2026

CITY COUNCIL SPECIAL MEETING AGENDA
JANUARY 29, 2026

CITY COUNCIL

SPECIAL MEETING
AGENDA
JANUARY 29, 2026 AT 9:00 AM

MAYOR CORY MOSS

MAYOR PRO TEM MICHAEL GREUBEL

COUNCIL MEMBER STEVE MARCUCCI
COUNCIL MEMBER MARK D. RADECKI

COUNCIL MEMBER NEWELL RUGGLES
LOCATION: City Council Chambers, 15651 Mayor Dave Way, City of Industry, California ADDRESSING THE CITY COUNCIL:

Agenda Items: Members of the public may address the City Council on any matter listed on the Agenda.

In order to conduct a timely meeting, there will be a one-minute time limit per person for any matter listed on the Agenda. Anyone wishing to speak to the City Council is asked to complete a Speaker’s Card which can be found at the back of the room and at the podium. The completed card should be submitted to the City Clerk prior to the Agenda item being called and prior to the individual being heard by the City Council.

At the time of publication, no Councilmembers intend to take part in the meeting remotely under the provisions of AB 2449. Should that change between the time of publication and the start of the meeting, a live webcasting of the meeting will be accessible via the link, meeting ID, and meeting passcode listed below. Whenever possible, an announcement will be made at the start of the meeting via the live webcast to confirm whether or not a Councilmember will join remotely. If they will not be joining remotely, then the live webcast will terminate after the announcement. www.microsoft.com/microsoft-teams/join-a-meeting
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AGENDAS AND OTHER WRITINGS:

In compliance with SB 343, staff reports and other public records permissible for disclosure related to open session agenda items are available at City Hall, 15625 Mayor Dave Way, City of Industry, California, at the office of the City Clerk during regular business hours, Monday through Thursday 8:00 a.m. to 5:00 p.m., Fridays 8:00 a.m. to 4:00 p.m. Any person with a question concerning any agenda item may call the City Clerk’s Office at (626) 333-2211.

CITY COUNCIL SPECIAL MEETING AGENDA
JANUARY 29, 2026

1. Call to Order

2. Flag Salute

3. AB 2449 Vote on Emergency Circumstances (if necessary)

4. Roll Call

5. Presentations-Homestead Quarterly Update

6. CONSENT CALENDAR

6.1. Consideration of the Register of Demands for January 22, 2026 RECOMMENDED ACTION: Ratify the Register of Demands for
January 22, 2026.

6.2. Consideration of Amendment No. 2 to a Professional Services Agreement with Bowser Geospatial, LLC., extending the term through June 30, 2029, increasing the compensation by $200,000, and amending the Rate Schedule to reflect the Consultant’s updated rates
RECOMMENDED ACTION: Approve the Amendment.

6.3. Consideration of the Annual Financial Reports for the City of Industry for Year Ending June 30, 2025
RECOMMENDED ACTION: Instruct Staff to present a summary of the Annual Financial Reports for the year ending June 30, 2025 to the City Council, and receive and file the Reports.

7. ACTION ITEMS-NONE

8. PUBLIC HEARINGS-NONE

9. CLOSED SESSION

9.1. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Significant exposure to litigation; Pursuant to Government Code Section 54956.9(d)(2) 1 potential case

10. CITY MANAGER REPORTS

11. AB 1234 REPORTS

12. CITY COUNCIL COMMUNICATIONS

13. Adjournment. The next regular City Council Meeting is Thursday, February 12, 2026, at 9:00 AM.

ITEM NO. 6.1

ITEM NO. 6.2

MEMORANDUM
TO: Honorable Mayor and Members of the City Council
FROM: Joshua Nelson, City Manager
STAFF: Mathew Hudson, Director of Public Works
DATE: January 29, 2026
SUBJECT: Consideration of Amendment No. 2 to a Professional Services Agreement with Bowser Geospatial, LLC., extending the term through June 30, 2029, increasing the compensation by $200,000, and amending the Rate Schedule to reflect the Consultant’s updated rates
Background:

On August 8, 2024, the City Manager executed a Professional Services Agreement (“Agreement”) with Bowser Geospatial, LLC for consultant services related to the City’s GIS Management System in the amount of $50,000. On April 9, 2025, Staff approved Amendment No. 1 to the Agreement extending the term and updating the rate schedule with no increase in compensation. Both within the City Managers Authority per Municipal Code Section 3.04.055.

Discussion:

The current Agreement is reaching its $50,000 threshold; therefore, it is necessary to increase the Agreement amount to allow the Consultant to continue providing GIS support. Bowser Geospatial manages the entire GIS system for the system which includes operational support, system maintenance data stewardship, workflow development and modernization activities as needed. Bowser Geospatial also helps support the enterprise and cloud-based GIS environment that forms the foundation of the City’s geospatial capabilities. This environment enables mapping, analysis, data access, and integration with internal workflows relied upon by City departments. Services within this area may include assistance with administrative tasks in the City’s GIS platforms, configuration and maintenance of services and applications, and technical support intended to maintain system performance and reliability. These efforts help ensure that City Staff have access to accurate and current geospatial information necessary for engineering, planning, public works, and other operational functions.

In addition to maintaining the GIS environment Bowser helps with various GIS tasks. For example, they are creating a platform to make assigning addresses easier and more efficient. Bowser is also helping setting up our digital database which includes filling out meta data for various engineering plans so the City can have a digital data base of all of our plans. Bowser also does various tasks as assigned by the City Manager.

Staff is recommending Amendment No. 2 to the contract which extends the term for three years through June 30, 2029 with an accompany increase of $200,000 over the three years and amend the Rate Schedule to reflect the Consultants updated rates.

Fiscal Impact:

The fiscal impact for Amendment No. 2 is $200,000.00. In the adopted Fiscal Year 2025-2026 General Fund budget, $500,000 is approved for this work. (Account No. 100-525-5120.01/MP 16-06).

Recommendation:

Staff recommends the City Council approve Amendment No. 2 to the Professional Services Agreement with Bowser Geospatial, LLC.

Exhibits:

1. Amendment No. 2 to the Professional Services Agreement, dated January 29, 2026

2. Professional Service Agreement with Bowser Geospatial, LLC, dated August 8, 2024

EXHIBIT 1
Amendment No. 2 to the Professional Services Agreement with Bowser Geospatial, LLC, dated January 29, 2026
[Attached]

AMENDMENT NO. 2

TO PROFESSIONAL SERVICES AGREEMENT WITH

BOWSER GEOSPATIAL, LLC, A CALIFORNIA CORPORATION
This Amendment No. 2 to the Professional Services Agreement (“Agreement”) is made and entered into this 29th day of January 2026, (“Effective Date”) by and between the City of Industry (“City”), a municipal corporation, and Bowser Geospatial, LLC, a California limited liability company, (“Consultant”). City and Consultant are hereinafter collectively referred to as the “Parties.”

RECITALS
WHEREAS, on or about August 8, 2024, the City Manager approved a Professional Services Agreement (“Agreement”) with Consultant to provide GIS Management Consulting services and to manage and maintain City’s GIS database; and WHEREAS, on or about April 9, 2025, Amendment No. 2 was approved extending the term to June 30, 2026, and revising the Rate Schedule; and WHEREAS, the Agreement expires June 30, 2026, and it is necessary to extend the term through June 30, 2029, to allow the Consultant to continue providing GIS support, revise the rate schedule to reflect the Consultant’s current rates, and to increase compensation by $200,000; and WHEREAS, for the reason set forth herein, the City and Consultant desire to enter into this Amendment No. 2, as set forth below.

AMENDMENT
NOW, THEREFORE, in consideration of the mutual covenants, promises and agreements set forth herein, it is agreed the aforesaid Agreement, a copy of which is attached hereto as Exhibit B, and incorporated herein by reference, shall remain in full force and effect except as otherwise hereinafter provided:

1. TERM
Section 1 is hereby revised to read as follows:

This Agreement shall commence on the Effective Date and shall remain and continue in effect until tasks described herein are completed, but in no event later than June 30, 2029, unless sooner terminated pursuant to the provisions of this Agreement.

4. PAYMENT
The second sentence of Section 4(A) is hereby amended to read in its entirety as follows:

This amount shall not exceed Two Hundred Fifty Thousand Dollars ($250,000.00) for the total Term of the Agreement unless additional payment is approved as provided in the Agreement.

EXHIBIT B, Rate Schedule
The Rate Schedule is hereby rescinded in its entirety and replaced with the new Exhibit C Rate Schedule set forth in Attachment 1, attached hereto, and incorporated herein by reference.

IN WITNESS WHEREOF, the Parties have executed this Amendment No. 1 to the Agreement as of the Effective Date.

The person or persons executing this Agreement on behalf of Consultant represents and warrants that he/she has the authority to execute this Agreement on behalf of the Consultant and has the authority to bind Consultant to the performance of its obligations hereunder. “CITY” “CONSULTANT”
City of Industry BOWSER GEOSPATIAL, LLC
By: ________________________________ By: _______________________________ Joshua Nelson, City Manager Timothy Bowser, CEO
Attest:

By: _________________________________
Julie Gutierrez-Robles, City Clerk, CMC

APPROVED AS TO FORM
By: ________________________________
James M. Casso, City Attorney

ATTACHMENT 1

EXHIBIT B
Rate Schedule
Role Hourly Billing Rate
Leadership & Architecture
Principal GIS Consultant $225
Cloud Solution Architect $215
Senior GIS Consultant $205
GIS Project Manager $195
Technical Specialists
Utility Network / Data Migration Specialist $210
Systems Integration Engineer $195
Cloud / ArcGIS Ops Engineer $180
GIS Developer $185
Analysts & Field Operations
Senior GIS Analyst $170
GIS Analyst $150
Training & Enablement Specialist $160
Field Mobility / Data Collection Specialist $150
GIS Technician $120
GIS Intern $85
Our rates are reviewed annually and are subject to up to a 3.5% increase each year to align with industry standards and ensure the continued quality of our services.

EXHIBIT 2
Professional Service Agreement with Bowser Geospatial, LLC, dated August 8, 2024 [Attached]

ITEM NO. 6.3

MEMORANDUM
TO: Honorable Mayor and Members of the City Council
FROM: Joshua Nelson, City Manager
STAFF: Yamini Pathak, Finance Director
DATE: January 29, 2026
SUBJECT: Consideration of the Annual Financial Reports for the City of Industry for Year Ending June 30, 2025
Background:

The City's independent auditors, Rogers, Anderson, Malody & Scott, LLP, have completed their annual audit of the City's financial statements which includes the financial activities of its component units (Successor Agency to the Industry Urban-Development Agency, the Civic-Recreational Industrial Authority, the Industry Public Facilities Authority, and the Industry Property and Housing Management Authority) for the year ending June 30, 2025. The financial statements received an unqualified (or clean) opinion. No material weakness in internal control was noted by the Auditors.

Discussion:

The financial reports and management compliance letter for the year ending June 30, 2025 are briefly described below:

Annual Financial Report
The annual financial statement is a comprehensive document reflecting the financial position of the City and its component units. The Auditors issued an unqualified (or clean) opinion on these financial statements.

Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards
No material weakness in internal control was noted by the Auditors.

The Auditors’ Communications with the City's Audit Committee and City Council Statement of Auditing Standards (SAS) No. 114 requires more and documented communications between the auditors and the City's Audit Committee and City Council. This letter provides an opportunity for the auditors to report on any difficulties or major concerns discovered during the audit and to further define their role. They provide commentary on management's responsibilities for accounting policies and estimates that no

significant difficulties were encountered in performing the audit, and no disagreements occurred with management. They point out that management has corrected all known material misstatements.

Independent Accountant's Report on Agreed-Upon Procedures Applied to Appropriation Limit Worksheets
Section 1.5 of Article XIII-B of the California Constitution requires that the City follow the procedures agreed upon by the State of California and the League of California Cities (as presented in the League publication entitled Article XIII-B Appropriations Limitation Uniform Guidelines) to determine the annual appropriations limit. The auditors provide this report, which confirms the City's compliance.

Fiscal Impact:

There is no fiscal impact as result of this action.

Recommendation:

Receive and file the City of Industry (the "City") annual financial reports for the year ending June 30, 2025, and instruct Staff to present a summary of the year ending June 30, 2025 Annual Financial Reports to the City Council.

1. Annual Audited Basic Financial Statements for the Year Ending June 30, 2025 with Independent Auditors’ Report

2. Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters for the Year Ending June 30, 2025

3. Auditors’ Communications with the City Council for the Year Ending June 30, 2025

4. Independent Auditors’ Report on Agreed-Upon Procedures Applied to the Appropriations Limit Worksheets for the Year Ending June 30, 2025
Exhibits:

1. Financial Statements - Industry

2. GAGAS - Industry

3. COR-903 - Industry

4. GANN - Industry

City of Industry
Financial Statements and Supplementary Information
For the year ended June 30, 2025

City of Industry
Financial Statements
For the Year Ended June 30, 2025

TABLE OF CONTENTS
Independent Auditor’s Report ...................................................................................................... 1 Management’s Discussion and Analysis ...................................................................................... 4 Financial Statements:

Government-Wide Financial Statements:

Statement of Net Position .............................................................................................. 16 Statement of Activities .................................................................................................... 18 Fund Financial Statements:

Governmental Funds:

Balance Sheet .......................................................................................................... 20 Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position ..................................................... 22

Statement of Revenues, Expenditures, and Changes in Fund Balances ................. 23 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide
Statement of Activities ........................................................................................ 25 Proprietary Funds:

Statement of Net Position ......................................................................................... 26 Statement of Revenues, Expenses, and Changes in Net Position .......................... 27 Statement of Cash Flows ......................................................................................... 28 Fiduciary Funds:

Statement of Fiduciary Net Position ......................................................................... 30 Statement of Changes in Fiduciary Net Position ...................................................... 31 Notes To Financial Statements ............................................................................................ 32 Required Supplementary Information:

Schedule of the City’s Proportionate Share of the Plan’s Net Pension Liability and Related Ratios (Unaudited) ............................................................................................ 78 Schedule of Contributions - Pension (Unaudited) ........................................................... 80 Schedule of Changes in Net Other Postemployment Benefits Liability (Asset) and Related Ratios (Unaudited) ...................................................................................... 82 Budgetary Comparison Schedule - General Fund (Unaudited) ...................................... 83 Note To Required Supplementary Information ............................................................... 84 Supplementary Information:

Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual:

City Capital Projects Fund ........................................................................................ 85 City Debt Service Fund ............................................................................................ 86 Industry Public Facilities Authority Debt Service Fund ............................................. 87

City of Industry
Financial Statements
For the Year Ended June 30, 2025

TABLE OF CONTENTS (CONTINUED)
Supplementary Information (Continued):

Nonmajor Governmental Funds:

Combining Balance Sheet .............................................................................................. 88 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ......................................................................................................... 90 Schedule of Revenues, Expenditures, And Changes in Fund Balances – Budget And Actual:

State Gas Tax Special Revenue Fund ............................................................... 92 Measure R Local Return Special Revenue Fund ............................................... 93 Proposition A Sales Tax Special Revenue Fund ................................................ 94 Proposition C Sales Tax Special Revenue Fund ................................................ 95 Measure M Special Revenue Fund .................................................................... 96 Measure W Special Revenue Fund .................................................................... 97 CARB Tax Special Revenue Fund ..................................................................... 98 CRIA Capital Projects Fund ............................................................................... 99 Schedule of Long-Term Debt - City of Industry Only:
$336,570,000 Taxable Sales Tax Refunding Bonds, Series 2015A ...................... 100 $51,460,000 Taxable Sales Tax Refunding Bonds, Series 2015 B ........................ 101 $34,340,000 Taxable Sales Tax Refunding Bonds, Series of 2017 ....................... 102

Tel. 909-889-0871 | www.ramscpa.net | 735 E. Carnegie Dr. Suite 100, San Bernardino, CA 92408

CERTIFIED PUBLIC ACCOUNTANTS
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Independent Auditor’s Report
To the Honorable Mayor and Members
of the City Council of the
City of Industry
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Industry (the City), as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents.

In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the businesstype activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2025, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States (Government Auditing Standards). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Emphasis of Matter
As described in Note 1 to the financial statements during the year ended June 30, 2025, the City adopted new accounting guidance under Governmental Accounting Standards Board (GASB) Statement No. 101, Compensated Absences and No. 102, Certain Risk Disclosures. Our opinions are not modified with respect to this matter.

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

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS and Government Auditing Standards, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.
 Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks.

Such procedures include examining on a test basis, the evidence regarding the amounts and disclosures in the financial statements.
 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.
 Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.

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Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the required supplementary information, such as management’s discussion and analysis and those tables as listed in the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying supplementary information, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The 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 GAAS. In our opinion, the accompanying supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 13, 2026 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is 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 opinion on the effectiveness of internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

San Bernardino, California
January 13, 2026

City of Industry
Management’s Discussion and Analysis
For the Year Ended June 30, 2025
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As management of the City of Industry and its component units (“City”), we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2025. We encourage readers to consider the information presented here in conjunction with the City’s financial statements.

Financial Highlights
 The assets and deferred outflows of the City’s governmental activities exceeded its liabilities and deferred inflows at June 30, 2025 by $925.8 million (Net Position). Of this amount, $437.8 million is invested in capital assets, and $472.1 million in unrestricted net position. Net Position reflects an increase of $7.7 million from prior period and is mainly attributable to increase in property tax revenue and reduction in public works expenses.  The assets of the City’s business-type activities exceeded its liabilities at June 30, 2025 by $83.0 million (Net Position). Of this amount, $65.1 million is invested in capital assets, net of related debt, and $18.0 million in unrestricted net position. Net position remained comparable during the year ended June 30, 2025.
 The City’s total debt and liabilities decreased by $4.9 million, of which is primarily attributed to reductions in long-term liabilities due in more than one year as a result of scheduled principal payments on long-term debts.
 In the General Fund, the net change in fund balance was a increase of $34.8 million. The increase in fund balance was attributed mostly to an increase in transfers in from debt service fund of sales tax money in excess of debt service payments. At June 30, 2025, the General Fund’s ending fund balance was $721.4 million with an unassigned balance of $645.0 million.

General Overview of the Financial Statements
This annual report consists of four parts – management’s discussion and analysis, the basic financial statements, required supplementary information, and other supplementary information section that presents combining financial statements and debt amortization schedules. The basic financial statements are comprised of 3 parts – (1) the government-wide financial statements, (2) the fund financial statements and (3) the notes to the financial statements. The government-wide financial statements, the Statement of Net Position and the Statement of Activities provide information about the activities of the City as a whole and present a long-term view of the City’s finances. For governmental activities, these statements tell how these services were financed in the short term as well as what remains for future spending. Fund financial statements also report the City’s operations in more detail than the government- wide statements by providing information about the City’s most significant funds.

City of Industry
Management’s Discussion and Analysis
For the Year Ended June 30, 2025
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Government-Wide Statements
The Statement of Net Position and the Statement of Activities The Statement of Net Position and the Statement of Activities report information about the City as a whole and about its activities. These statements include all assets, deferred outflows of resources, liabilities, and deferred inflows of resources using the accrual basis of accounting, which is similar to the accounting used by most private-sector companies. All of the current year’s revenues and expenses are taken into account regardless of when cash is received or paid.

These two statements report the City’s Net Position and changes thereto. Net Position, the difference between assets and deferred outflows of resources and liabilities and deferred inflows of resources are one way to measure the City’s financial health or financial position. Over time, increases or decreases in Net Position are an indicator of whether the financial health is improving or deteriorating.

However, it is important to consider other non-financial factors such as changes in the City’s property tax base or condition of the City’s roads to accurately assess the overall health of the City.

The Statement of Net Position and the Statement of Activities, present information about the following:

Governmental Activities - All of the City’s basic services are considered to be governmental activities, including general government support services, community development, public safety, public works, and community services. Property taxes, transient occupancy taxes, sales taxes, and franchise fees finance most of these activities.

Proprietary Activities/Business Type Activities - The City charges a fee to customers to cover all or most of the cost of the services provided. The Industry Public Utilities Commission (the “IPUC”), the Industry Hills Expo Center, and the Industry Property and Housing Authority (the “Housing Authority”) are reported in this category.

Component Units - The City’s government-wide financial statements include the blending with the City of the following entities: The Civic-Recreational-Industrial Authority (“CRIA”), the Industry Public Utilities Commission, the City of Industry Public Facilities Authority (the “PFA”) and the Industry Property and Housing Management Authority (the “Housing Authority”). Although legally separate, these “component units” are important because the City is financially accountable for them.

City of Industry
Management’s Discussion and Analysis
For the Year Ended June 30, 2025
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Reporting the City’s Most Significant Funds
Fund Financial Statements
The fund financial statements provide detailed information about the most significant funds – not the City as a whole. Some funds are required to be established by State law and by bond covenants. However, management establishes many other funds that aid in the administration of resources for particular purposes or meet legal responsibilities associated with the usage of certain taxes, grants, and other money. The City’s three kinds of funds, governmental, proprietary and fiduciary, use different accounting approaches as explained below.

Governmental Funds - Most of the City’s basic services are reported in governmental funds.

Governmental funds focus on how resources flow in and out with balances remaining at year-end that are available for spending. These funds are reported using an accounting method called modified accrual, which measures cash and all other financial assets that can be readily converted to cash. The governmental fund statements provide a detailed short-term view of the City’s general government operations and the basic services it provides. Governmental fund information shows whether there are more or fewer financial resources that can be spent in the near future to finance the City’s programs.

We describe the relationship (or differences) between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds through a reconciliation following the fund financial statements.

Proprietary Funds - The City maintains four enterprise funds. The enterprise funds are classified as proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for the IPUC, Industry Hills Expo Center, and Housing Authority. These funds use the full accrual method of accounting.

Fiduciary Funds - Custodial Funds are used to account for assets held by the City as an agent for individuals, other governments and/or other funds. Custodial Funds are custodial in nature (assets equal liabilities) and do not involve measurement or results of operations. The PrivatePurpose Trust Fund is a fiduciary fund used by the City to report trust arrangements under which the principal and income benefits other governments. This fund reports the assets, liabilities and activities of the Successor Agency of the Industry Urban-Development Agency.

The City is the trustee, or fiduciary, for certain amounts held on behalf of developers, property owners, and others. These fiduciary activities are reported in Private-Purpose Trust Fund. The City is responsible for ensuring that the assets are used for their intended purposes. Therefore, fiduciary activities are excluded from the City’s other financial statements because the assets cannot be used to finance operations.

City of Industry
Management’s Discussion and Analysis
For the Year Ended June 30, 2025
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The City as a Whole
Our analysis focuses on the net position (Tables 1 and 3) and changes in net position (Tables 2 and 4) of the City’s governmental and business activities.

Table 1
Governmental Activities
2025 2024 Change
Current and other assets 837,521,568 $ 847,738,605 $ (10,217,037) $ Capital assets, net 437,823,174 426,381,017 11,442,157
Total assets 1,275,344,742 1,274,119,622 1,225,120
Deferred outflows of resources:

Deferred loss on refunding, net 435,949 435,949 -
Deferred outflows of resources - pension 2,469,343 3,855,124 (1,385,781) Deferred outflow of resources - OPEB 1,127,273 1,995,254 (867,981) Total deferred outflows of resources 4,032,565 6,286,327 (2,253,762) Long-term liabilities 319,499,603 325,547,900 (6,048,297) Other liabilities 26,913,268 29,054,461 (2,141,193)
Total liabilities 346,412,871 354,602,361 (8,189,490)
Deferred inflows of resources:

Deferred inflow of resources - leases 5,783,777 5,915,523 (131,746) Deferred inflows of resources - pension 1,383,988 1,474,003 (90,015) Deferred inflows of resources - OPEB - 322,862 (322,862) Total deferred inflow of resources 7,167,765 7,712,388 (544,623) Net position:

Net investment in capital assets 437,823,174 426,381,017 11,442,157 Restricted for:

Transportation and road 7,281,710 6,235,530 1,046,180
Section 115 Trust 6,226,595 5,636,568 590,027
Other postemployment benefits 2,388,510 2,191,411 197,099 Unrestricted 472,076,682 477,645,674 (5,568,992)
Total net position 925,796,671 $ 918,090,200 $ 7,706,471 $ Net Position
As of June 30,
As noted above, Net Position may serve over time as a useful indicator of a government’s financial position. In the case of the City, assets exceeded liabilities for governmental activities by approximately $925.8 million at June 30, 2025.

City of Industry
Management’s Discussion and Analysis
For the Year Ended June 30, 2025
-8-
The largest portion of the Net Position, amounted to approximately $472.1 is unrestricted by external sources on how the funds may be used. Approximately $437.8 million is the City’s net investment in its capital assets. In addition, $7.3 million are restricted for transportation and road projects.

The City’s total Net Position under governmental activities increased over the prior year by $7.7 million mainly attributable to increase in revenues of all sources.

Total liabilities and deferred inflows/outflows of resources decreased by approximately $11.0 million primarily attributable to reductions in long-term liabilities due in more than one year, as a result of regular scheduled principal payments on long-term debts.

The increase in net investment in capital assets of $11.4 million is a result of net additions and dispositions of capital assets, and depreciation expense for the current year.

Governmental Activities – Changes in Net Position
Table 2
Governmental Activities
2025 2024 Change
General revenues:

Taxes 52,495,030 $ 51,346,341 $ 1,148,689 $
Revenues from use of money and property 48,372,453 47,390,977 981,476 Other revenues 2,157,145 1,243,436 913,709
Total general revenues 103,024,628 99,980,754 3,043,874 Expenses in excess of program revenues:

General government 9,664,570 8,852,939 811,631
Support services 6,899,715 6,833,090 66,625
Community development 1,210,288 1,040,900 169,388
Community services 12,394,098 13,340,364 (946,266)
Public safety 17,070,789 14,634,712 2,436,077
Public works 22,183,362 24,241,896 (2,058,534)
Interest expense and fiscal charges 23,785,344 23,477,879 307,465 Total expenses in excess of program revenues 93,208,166 92,421,780 786,386 Change in net position before other items 9,816,462 7,558,974 2,257,488 Transfers, net (2,109,991) (2,509,670) 399,679
Change in net position 7,706,471 5,049,304 2,657,167
Net position, beginning of year , as restated 918,090,200 913,040,896 5,049,304 Net position, end of year 925,796,671 $ 918,090,200 $ 7,706,471 $ Change in Net Position
For the Year Ended June 30,

City of Industry
Management’s Discussion and Analysis
For the Year Ended June 30, 2025
-9-
The total revenues, reported as governmental activities, increased by approximately $3.0 million.

This was due to an increase in revenue from all sources.

The increase in net position before other items was due to the increase of expenses outpaced by the increase of revenues.

Business-Type Activities – Net Position
Table 3
Business-Type Activities
2025 2024 Change
Current and other assets 25,153,148 $ 21,380,887 $ 3,772,261 $ Capital assets, net 65,165,590 66,902,691 (1,737,101)
Total assets 90,318,738 88,283,578 2,035,160
Liabilities 7,082,257 6,783,350 298,907
Total liabilities 7,082,257 6,783,350 298,907
Deferred inflows of resources - leases 197,839 265,669 (67,830) Total deferred inflows of resources 197,839 265,669 (67,830) Net position
Net investment in capital assets 65,165,590 66,902,691 (1,737,101) Unrestricted 17,873,052 14,331,868 3,541,184
Total net position 83,038,642 $ 81,234,559 $ 1,804,083 $ Net Position
As of June 30,
Total net position for the City’s business type activities increased by approximately $1.8 million as compared to the prior year. The increase was primarily attributable to an increase in net capital assets.

City of Industry
Management’s Discussion and Analysis
For the Year Ended June 30, 2025
-10-
Business-Type Activities – Change in Net Position
The change in Net Position for business type activities is summarized as follows:

Table 4
Business-Type Activities
2025 2024 Change
Revenues
Charges for services 14,900,636 $ 18,908,797 $ (4,008,161) $ Other revenues 736,519 711,352 25,167
Total revenues 15,637,155 19,620,149 (3,982,994)
Expenses
Water transmission and distributions 4,475,617 4,111,354 364,263 Purchased electricity 6,510,394 8,981,225 (2,470,831)
Cost of expo operations 3,974,000 3,867,057 106,943
Cost of housing authority operations 983,052 1,159,039 (175,987) Total expenses 15,943,063 18,118,675 (2,175,612)
Income (loss) from operations before transfers (305,908) 1,501,474 (1,807,382) Transfers and contributions 2,109,991 2,509,670 (399,679) Change in net position 1,804,083 4,011,144 (2,207,061)
Net position, beginning of year 81,234,559 77,223,415 4,011,144 Net position, end of year 83,038,642 $ 81,234,559 $ 1,804,083 $ Change in Net Position
For the Year Ended June 30,
Revenues decreased by $4.0 million over the prior year, primarily due to decrease in charges for services.

Financial Analysis of the City’s Funds
The City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The focus of the City’s governmental funds is to provide information on near-term inflows, outflows and balances of spendable resources. Such information is useful in assessing the City’s financing requirements.

City of Industry
Management’s Discussion and Analysis
For the Year Ended June 30, 2025
-11-
Below is a summary of the General Fund revenues and expenditures compared to the prior year.

Table 5
Governmental Activities
2025 2024 Change
Revenues
Taxes 52,505,518 $ 51,356,984 $ 1,148,534 $
Intergovernmental 374,968 293,998 80,970
Charges for services 315,978 242,096 73,882
Licenses and permits 2,337,729 1,910,505 427,224
Fines, forfeitures and penalties 250,075 331,964 (81,889) Use of money and property 37,580,431 35,921,710 1,658,721 Other revenue 5,982,226 3,440,869 2,541,357
Total revenues 99,346,925 93,498,126 5,848,799
Expenditures
Current:

Legislative 979,962 930,356 49,606
General administration 6,830,782 6,797,286 33,496
Support services 4,515,992 4,344,699 171,293
Community development 3,418,817 2,889,926 528,891
Community services 11,049,678 12,058,063 (1,008,385)
Public safety 14,512,798 14,548,154 (35,356)
Public works 17,015,999 16,803,011 212,988
Capital outlay 206,877 1,866,666 (1,659,789)
Debt service:

Principal retirement 146,886 - 146,886
Interest and fiscal charges 6,317 - 6,317
Total expenditures 58,684,108 60,238,161 (1,554,053)
Excess of revenues over expenditures 40,662,817 33,259,965 7,402,852 Other financing sources (uses):

Net transfers (6,402,357) (45,612,994) 39,210,637
Subscription acquisition 360,080 - 360,080
Proceeds from sale of assets 210,687 - 210,687
Total other financing sources (uses) (5,831,590) (45,612,994) 39,781,404 Change in fund balance 34,831,227 $ (12,353,029) $ 47,184,256 $ General Fund Comparison
For the Year Ended June 30,

City of Industry
Management’s Discussion and Analysis
For the Year Ended June 30, 2025
-12-
The General Fund is the main operating fund of the City. At the end of the current fiscal year, the General Fund reflects a fund balance of $721.4 million, which is an increase from prior year of $34.8 million. The increase was attributed mostly to an increase in revenues of most sources and decrease of expenditures in community services and capital outlay.

General Fund Budgetary Highlights
The City adopts a budget every fiscal year. Differences between the budget and actual for current expenditures for the General Fund are shown below:

Table 6
Original Revised
Budget Budget Actual Variance
Legislative 1,048,000 $ 1,055,000 $ 979,962 $ 75,038 $
General administration 8,984,000 8,468,500 6,830,782 1,637,718 Support services 5,742,000 6,124,000 4,515,992 1,608,008 Community development 2,723,000 2,852,000 3,418,817 (566,817) Community services 12,146,000 12,472,000 11,049,678 1,422,322 Public safety 15,307,000 15,312,000 14,512,798 799,202
Public works 14,406,500 14,601,500 17,015,999 (2,414,499) Capital outlay - - 206,877 (206,877)
Debt service - - 153,203 (153,203)
Total expenditures 60,356,500 $ 60,885,000 $ 58,684,108 $ 2,200,892 $ General Fund Budget to Actual Comparison
For the Year Ended June 30,
Overall, total actual expenditures for the City were on budget.

City of Industry
Management’s Discussion and Analysis
For the Year Ended June 30, 2025
-13-
Capital Asset and Debt Administration
Capital Assets
Net capital assets for governmental activities as of June 30, 2025 and 2024 are summarized as follows:

Table 7
Governmental Activities
2025 2024 Change
Capital assets not being depreciated:

Land 110,604,835 $ 110,604,835 $ - $
Construction in progress 62,562,241 46,552,022 16,010,219 Total capital assets, not being depreciated 173,167,076 157,156,857 16,010,219 Capital assets being depreciated:

Buildings and improvements 120,670,145 120,670,145 -
Equipment, furniture and fixtures 6,508,578 6,508,578 - Infrastructure 353,141,602 343,029,178 10,112,424
Subscription asset 450,116 - 450,116
Total capital assets, being depreciated 480,770,441 470,207,901 10,562,540 Less accumulated depreciation/amortization (216,114,343) (200,983,741) (15,130,602) Total capital assets being depreciated, net 264,656,098 269,224,160 (4,568,062) Total governmental activities 437,823,174 $ 426,381,017 $ 11,442,157 $ Net Capital Assets at Year-End
As of June 30, 2025, the City’s governmental activities had approximately $437.8 million invested in capital assets including buildings, land, roads, and other general infrastructure, net of accumulated depreciation. This amount represents a net decrease of $11.4 million from prior year and it was due to additional capital improvement projects, as well as the City placing in service completed construction in progress projects for infrastructure, buildings and improvements. Accumulated depreciation increased by $15.1 million.

City of Industry
Management’s Discussion and Analysis
For the Year Ended June 30, 2025
-14-
Net capital assets for business-type activities as of June 30, 2025 and 2024 are summarized as follows:

Table 8
Business-Type Activities
2025 2024 Change
Capital assets not being depreciated:

Land 6,764,880 $ 6,764,880 $ - $
Water rights 441,200 441,200 -
Construction in progress 14,063,625 14,552,172 (488,547) Total capital assets, not being depreciated 21,269,705 21,758,252 (488,547) Capital assets being depreciated:

Buildings and improvements 55,193,845 55,193,845 -
Equipment, furniture and fixtures 1,322,648 1,322,648 - Infrastructure 35,019,199 33,782,414 1,236,785
Source of supply - electric 4,495,494 4,495,494 -
Total capital assets, being depreciated 96,031,186 94,794,401 1,236,785 Less accumulated depreciation (52,226,792) (49,649,962) (2,576,830) Total capital assets being depreciated, net 43,804,394 45,144,439 (1,340,045) Total business-type activities 65,074,099 $ 66,902,691 $ (1,828,592) $ Net Capital Assets at Year-End
Capital assets in the Business-Type Activities belong to IPUC and the Industry Hills Expo Center.

The decrease in net capital assets of $1.8 million was primarily due to depreciation of the assets.

Long-term Liabilities
At June 30, 2025, the City had total long term debt and other non-current liabilities of approximately $323.5 million which is a decrease of $4.9 million from prior year. The reduction is primarily due to principal payments of outstanding debt.

Below is a summary of the long-term liabilities at June 30, 2025:

Table 9
Governmental Activities
2025 2024 Change
Revenue bonds 327,075,000 $ 332,940,000 $ (5,865,000) $ Original issue premium (4,546,474) (4,826,355) 279,881
Compensated absences 728,185 235,566 492,619
Subscription liability 213,194 - 213,194
Total outstanding debt 323,469,905 $ 328,349,211 $ (4,879,306) $ Outstanding Debt at Year-End

City of Industry
Management’s Discussion and Analysis
For the Year Ended June 30, 2025
-15-
Economic Factors and Next Year’s Budgets and Rates
The City continuously strives and plans infrastructure investments to maximize development opportunities, streamline goods movement and link the workforce to their workplaces. In the meantime, the City expands its efforts to provide services and programs that promote the wellbeing of the San Gabriel Valley.

The City’s General Fund has adopted an operating budget of $84.7 million in revenues and $61.0 million in expenses. Additionally, approximately $74.5 million in capital project expenditures is budgeted for several funds in the 2025-2026 fiscal year. The following is a summary of the major capital improvement projects for citywide.

Table 10
Capital Projects for FY 2025-2026
Budget
Project Description 2025-2026
1 GRADE SEPARATION PROJECTS 825,000 $
2 STREET WIDENING, RECONSTRUCTION, RESURFACING AND SLURRY SEAL 22,310,000 3 STORM DRAIN IMPROVEMENTS 1,330,000
4 TRAFFIC SIGNAL IMPROVEMENTS 4,675,000
5 BRIDGE WIDENING, SEISMIC RETROFIT AND MAINTEANCE IMPROVEMENTS 375,000 6 HOMESTEAD MUSEUM 545,000
7 INDUSTRY HILLS GOLF & CONVENTION FACILITIES 190,000
8 EL ENCANTO C.I.P. 500,000
9 OPEN SPACES/ TONNER CANYON/TRES HERMANOS 1,190,000
10 PROPERTY REDEVELOPMENT & DEMO 25,000
11 MISCELLANEOUS 525,000
12 CIVIC CENTER FACILITIES 2,700,000
13 FACILITIES IMPROVEMENTS 3,540,000
Total $ 38,730,000
The Operating Budget for Fiscal Year 2025-26 is a well-balanced budget that reflects the City’s commitment to the betterment of the community and stay within the City’s financial constraint. Budget documents are available online at www.cityofindustry.org. Questions or requests for information regarding the City of Industry’s budget should be sent to the Finance Department at the address below.

Request for Information
This financial report is designed to provide a general overview of the City’s finances for all those with an interest in the government’s finances. Questions concerning any information provided in this report or request for additional financial information should be directed to the Finance Department at the City of Industry, 15625 Mayor Dave Way, City of Industry, California 91744.

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City of Industry
Statement of Net Position
June 30, 2025
The accompanying notes are an integral part of these financial statements. -16-
Governmental Business-Type
Activities Activities Total
ASSETS
Current assets:

Cash 10,771,281 $ 4,178,796 $ 14,950,077 $
Investments 345,399,677 16,142,322 361,541,999
Investment in Section 115 Trust 6,226,595 - 6,226,595
Investments with fiscal agent - unrestricted 327,503,471 - 327,503,471 Accounts receivable, net 9,347,077 4,157,792 13,504,869 Accrued interest 6,432,217 184,472 6,616,689
Lease receivable, current portion 1,631,933 78,480 1,710,413 Internal balances 906,000 (906,000) -
Inventory of materials and supplies 48,520 60,819 109,339 Prepaid items 3,490,555 317,467 3,808,022
Deposits - 33,000 33,000
Total Current Assets 711,757,326 24,247,148 736,004,474 Noncurrent assets:

Investments with fiscal agent - restricted 97,865,740 - 97,865,740 Lease receivable 4,381,012 91,491 4,472,503
Notes receivable 21,128,980 - 21,128,980
Net OPEB asset 2,388,510 - 2,388,510
Capital assets:

Not being depreciated 173,167,076 21,269,705 194,436,781 Being depreciated (net of accumulated depreciation) 264,656,098 43,804,394 308,460,492 Total Noncurrent Assets 563,587,416 65,165,590 628,753,006 Total Assets 1,275,344,742 89,412,738 1,364,757,480

DEFERRED OUTFLOWS OF RESOURCES
Loss on refunding 435,949 - 435,949
Deferred amounts from pension plans 2,469,343 - 2,469,343 Deferred amounts from OPEB 1, - 127,273 1,127,273
Total Deferred Outflows of Resources 4,032,565 - 4,032,565 (continued)

City of Industry
Statement of Net Position
June 30, 2025
The accompanying notes are an integral part of these financial statements. -17-
Governmental Business-Type
Activities Activities Total

LIABILITIES
Current liabilities:

Accounts payable 9,945,430 $ 1,658,438 $ 11,603,868 $
Accrued liabilities 412,574 - 412,574
Deposits 9,258 1,707,015 1,716,273
Interest payable 9,547,120 - 9,547,120
Unearned revenue 15,010 2,810,804 2,825,814
Long-term liabilities, current portion 6,983,876 - 6,983,876 Total Current Liabilities 26,913,268 6,176,257 33,089,525 Noncurrent liabilities:

Net pension liability 3,013,574 - 3,013,574
Long-term liabilities, net of current portion 316,486,029 - 316,486,029 Total Noncurrent Liabilities 319,499,603 - 319,499,603
Total Liabilities 346,412,871 6,176,257 352,589,128

DEFERRED INFLOWS OF RESOURCES
Deferred amounts from leases 5,783,777 197,839 5,981,616 Deferred amounts from pension plans 1,383,988 - 1,383,988 Total Deferred Inflows of Resources 7,167,765 197,839 7,365,604

NET POSITION
Net investment in capital assets 437,823,174 65,165,590 502,988,764 Restricted for:

Transportation and road 7,281,710 - 7,281,710
Section 115 Trust 6,226,595 - 6,226,595
Other postemployment benefits 2,388,510 - 2,388,510
Unrestricted 472,076,682 17,873,052 489,949,734
Total Net Position 925,796,671 $ 83,038,642 $ 1,008,835,313 $ (concluded)

City of Industry
Statement of Activities
For the Year Ended June 30, 2025
The accompanying notes are an integral part of these financial statements. -18-
Program Revenues
Operating Capital
Charges for Grants and Grants and
Expenses Services Contributions Contributions

FUNCTIONS/PROGRAMS
Governmental activities:

General government 9,968,414 $ 235,664 $ 68,180 $ - $
Support services 6,899,715 - - -
Community development 3,822,106 2,611,818 - -
Community services 12,394,098 - - -
Public safety 17,618,547 246,575 301,183 -
Public works 28,299,385 - 5,734,508 381,515
Interest expense and fiscal charges 23,785,344 - - -
Total Governmental Activities 102,787,609 3,094,057 6,103,871 381,515 Business-type activities:

Industry Public Utilities Commission:

Water utility 4,475,617 4,618,252 - -
Electric utility 6,510,394 7,070,588 - -
Industry Hill Expo Center 3,974,000 2,751,574 - -
Property and Housing Management Authority 983,052 460,222 - - Total Business-Type Activities 15,943,063 14,900,636 - - Total Functions/Programs 118,730,672 $ 17,994,693 $ 6,103,871 $ 381,515 $ (continued)

City of Industry
Statement of Activities
For the Year Ended June 30, 2025
The accompanying notes are an integral part of these financial statements. -19-
Net Revenue (Expense)
and Change in Net Position
Governmental Business-Type
Activities Activities Total

FUNCTIONS/PROGRAMS
Governmental activities:

General government (9,664,570) $ - $ (9,664,570) $
Support services (6,899,715) - (6,899,715)
Community development (1,210,288) - (1,210,288)
Community services (12,394,098) - (12,394,098)
Public safety (17,070,789) - (17,070,789)
Public works (22,183,362) - (22,183,362)
Interest expense and fiscal charges (23,785,344) - (23,785,344) Total Governmental Activities (93,208,166) - (93,208,166) Business-type activities:

Industry Public Utilities Commission:

Water utility - 142,635 142,635
Electric utility - 560,194 560,194
Industry Hill Expo Center - (1,222,426) (1,222,426)
Property and Housing Management Authority - (522,830) (522,830) Total Business-Type Activities - (1,042,427) (1,042,427) Total Functions/Programs (93,208,166) (1,042,427) (94,250,593)

GENERAL REVENUES AND TRANSFERS
Taxes:

Property tax 12,028,912 - 12,028,912
Sales tax 35,979,850 - 35,979,850
Franchise tax 3,579,442 - 3,579,442
Documentary transfer tax 241,625 - 241,625
Transient occupancy tax 665,201 - 665,201
Total Taxes 52,495,030 - 52,495,030
Investment income 48,372,453 727,469 49,099,922
Sale of property 210,687 - 210,687
Other 1,946,458 9,050 1,955,508
Transfers (2,109,991) 2,109,991 -
Total General Revenues and Transfers 100,914,637 2,846,510 103,761,147 Change in Net Position 7,706,471 1,804,083 9,510,554
Net Position, Beginning of Year, as previously reported 904,209,339 81,234,559 985,443,898 Correction of an error 13,880,861 - 13,880,861
Net Position, Beginning of Year, as restated 918,090,200 81,234,559 999,324,759 Net Position, End of Year $ 83,038,642 925,796,671 $ 1,008,835,313 $ (concluded)

City of Industry
Balance Sheet
June 30, 2025
The accompanying notes are an integral part of these financial statements. -20-
Debt Service Funds
General Capital City Debt
Fund Projects Funds Service Fund
ASSETS
Cash 10,002,556 $ 47,059 $ 1,268 $
Investments 303,603,457 37,216,578 -
Investment in Section 115 Trust 6,226,595 - -
Investments with fiscal agent - unrestricted 327,503,471 - - Accounts receivable, net 7,710,215 14 -
Accrued interest 4,514,402 407,663 -
Lease receivable 6,012,945 - -
Inventory 48,520 - -
Prepaids and deposits 551,243 - 2,939,312
Due from other funds 1,010,762 1,492,183 -
Notes receivable 21,128,980 - -
Investments with fiscal agent - restricted - 53,333,484 44,532,256 Investments in City bonds - - -
Advances to other funds 48,466,836 - -
Total Assets 736,779,982 $ 92,496,981 $ 47,472,836 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES

LIABILITIES
Accounts payable 6,705,754 $ 2,682,156 $ - $
Accrued liabilities 412,574 - -
Deposits 9,258 - -
Unearned revenue 15,010 - -
Due to other funds 2,448,972 - -
Advance from other funds - - -
Total Liabilities 9,591,568 2,682,156 -

DEFERRED INFLOWS OF RESOURCES
Deferred inflows in leases 5,783,777 - -
Total Deferred Inflows of Resources 5,783,777 - -

FUND BALANCES (DEFICIT)
Nonspendable:

Prepaids and deposits 551,243 - -
Inventory 48,520 - -
Notes receivable 21,128,980 - -
Advances to other funds 48,466,836 - -
Restricted:

Capital projects - 89,814,825 -
Section 115 Trust 6,226,595 - -
Debt service - - 47,472,836
Transportation and roads - - -
Unassigned 644,982,463 - -
Total Fund Balances 721,404,637 89,814,825 47,472,836
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $ 92,496,981 736,779,982 $ 47,472,836 $ (continued)

City of Industry
Balance Sheet
June 30, 2025
The accompanying notes are an integral part of these financial statements. -21-
Debt Service
Fund Nonmajor
Industry Public Governmental
Facilities Authority Funds Total
ASSETS
Cash - $ 720,398 $ 10,771,281 $
Investments - 4,579,642 345,399,677
Investment in Section 115 Trust - - 6,226,595
Investments with fiscal agent - unrestricted - - 327,503,471 Accounts receivable, net - 1,636,848 9,347,077
Accrued interest 1,461,837 48,315 6,432,217
Lease receivable - - 6,012,945
Inventory - - 48,520
Prepaids and deposits - - 3,490,555
Due from other funds - 1,033,236 3,536,181
Notes receivable - - 21,128,980
Investments with fiscal agent - restricted - - 97,865,740 Investments in City bonds 40,053,611 - 40,053,611
Advances to other funds - - 48,466,836
Total Assets 41,515,448 $ 8,018,439 $ 926,283,686 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES

LIABILITIES
Accounts payable 2,000 $ 555,520 $ 9,945,430 $
Accrued liabilities - - 412,574
Deposits - - 9,258
Unearned revenue - - 15,010
Due to other funds - 181,209 2,630,181
Advance from other funds 48,466,836 - 48,466,836
Total Liabilities 48,468,836 736,729 61,479,289

DEFERRED INFLOWS OF RESOURCES
Deferred inflows in leases - - 5,783,777
Total Deferred Inflows of Resources - - 5,783,777

FUND BALANCES (DEFICIT)
Nonspendable:

Prepaids and deposits - - 551,243
Inventory - - 48,520
Notes receivable - - 21,128,980
Advances to other funds - - 48,466,836
Restricted:

Capital projects - - 89,814,825
Section 115 Trust - - 6,226,595
Debt service - - 47,472,836
Transportation and roads - 7,283,094 7,283,094
Unassigned (6,953,388) (1,384) 638,027,691
Total Fund Balances (6,953,388) 7,281,710 859,020,620
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $ 8,018,439 41,515,448 $ 926,283,686 $ (concluded)

City of Industry
Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position
June 30, 2025
The accompanying notes are an integral part of these financial statements. -22-
Fund Balances of Governmental Funds $ 859,020,620
Amounts reported for governmental activities in the statement of net position are different because:
are not included in the funds. These assets consist of:

Capital assets $ 653,937,517
Accumulated depreciation (216,114,343)
Total 437,823,174
period and, accordingly, are not reported as fund liabilities. Long-term liabilities are included in the statement of net position as follows:

City of Industry:

Bonds payable (374,359,881)
(Premium) discount, net 4,826,355
Compensated absences (728,185)
Deferred loss on refunding, net 435,949
Subscription liability (213,194)
Total (370,038,956)
in the governmental funds. (9,547,120)
Internal activities are eliminated in the governmental activities:

Investment In City bonds (40,053,611)
Bonds payable 47,005,000
Total 6,951,389
in the current period and accordingly are not reported as fund liabilities. Deferred outflows of resources and deferred inflows of resources related to pensions are only reported in the statement of net position as the changes in these amounts affect only the government-wide statements for governmental activities:

Deferred outflows of resources 2,469,343
Deferred inflows of resources (1,383,988)
Net pension liability (3,013,574)
Total (1,928,219)
the current period and accordingly are not reported as fund liabilities. Deferred outflows of resources and deferred inflows of resources related to OPEB are only reported in the statement of net position as the changes in these amounts affect only the governmentwide statements for governmental activities:

Deferred outflows of resources 1,127,273
OPEB asset 2,388,510
Total 3,515,783
Net Position of Governmental Activities 925,796,671 $
Capital assets used in governmental activities are not current financial resources and, Long-term liabilities applicable to governmental activities are not due and payable in the Accrued interest payable for the current portion of interest due on bonds are not reported Pension related liabilities applicable to the City's governmental activities are not due and OPEB related liabilities applicable to the City's governmental activities are not due and

City of Industry
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the Year Ended June 30, 2025
The accompanying notes are an integral part of these financial statements. -23-
City Debt Service Funds
General Capital City Debt
Fund Projects Funds Service Fund

REVENUES
Taxes 52,505,518 $ - $ - $
Intergovernmental 374,968 - -
Charges for services 315,978 - -
Licenses and permits 2,337,729 - -
Fines, forfeitures and penalties 250,075 - -
Use of money and property 37,580,431 4,585,001 2,656,822 Other revenue 5,982,226 - -
Total Revenues 99,346,925 4,585,001 2,656,822

EXPENDITURES
Current:

Legislative 979,962 - -
General administration 6,830,782 - 15,900
Support services 4,515,992 - -
Community development 3,418,817 - -
Community services 11,049,678 390 -
Public safety 14,512,798 - -
Public works 17,015,999 - -
Capital outlay 206,877 26,379,301 -
Debt service:

Principal retirement 146,886 - 6,510,000
Interest and fiscal charges 6,317 - 20,057,464
Total Expenditures 58,684,108 26,379,691 26,583,364
Excess (Deficiency) of Revenues Over
(Under) Expenditures 40,662,817 (21,794,690) (23,926,542)

OTHER FINANCE SOURCES (USES)
Transfers in 60,700,041 27,145,389 38,887,822
Transfers out (67,102,398) (30,937,472) (33,060,000)
Subscription acquisition 360,080 - -
Sale of property 210,687 - -
Total Other Financing Sources (Uses) (5,831,590) (3,792,083) 5,827,822 Net Change in Fund Balances 34,831,227 (25,586,773) (18,098,720)

FUND BALANCES (DEFICIT)
Beginning of Year 686,573,410 115,401,598 65,571,556
End of Year $ 89,814,825 721,404,637 $ 47,472,836 $

City of Industry
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the Year Ended June 30, 2025
The accompanying notes are an integral part of these financial statements. -24-
Debt Service
Fund Nonmajor
Industry Public Governmental
Facilities Authority Funds Total

REVENUES
Taxes - $ 6,969 $ 52,512,487 $
Intergovernmental - 2,038,354 2,413,322
Charges for services - - 315,978
Licenses and permits - - 2,337,729
Fines, forfeitures and penalties - - 250,075
Use of money and property 3,411,352 213,256 48,446,862
Other revenue - 4 5,982,230
Total Revenues 3,411,352 2,258,583 112,258,683

EXPENDITURES
Current:

Legislative - - 979,962
General administration - - 6,846,682
Support services - - 4,515,992
Community development - - 3,418,817
Community services - - 11,050,068
Public safety - - 14,512,798
Public works - 3,461,550 20,477,549
Capital outlay - - 26,586,178
Debt service:

Principal retirement - - 6,656,886
Interest and fiscal charges 3,555,533 - 23,619,314
Total Expenditures 3,555,533 3,461,550 118,664,246
Excess (Deficiency) of Revenues Over
(Under) Expenditures (144,181) (1,202,967) (6,405,563)

OTHER FINANCE SOURCES (USES)
Transfers in 7,480 4,237,036 130,977,768
Transfers out - (1,987,889) (133,087,759)
Subscription acquisition - - 360,080
Sale of property - - 210,687
Total Other Financing Sources (Uses) 7,480 2,249,147 (1,539,224) Net Change in Fund Balances (136,701) 1,046,180 (7,944,787)

FUND BALANCES (DEFICIT)
Beginning of Year (6,816,687) 6,235,530 866,965,407
End of Year $ 7,281,710 (6,953,388) $ 859,020,620 $
(concluded)

City of Industry
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government-wide Statements of Activities For the Year Ended June 30, 2025
The accompanying notes are an integral part of these financial statements. -25-
Net Change in Fund Balances of Governmental Funds (7,944,787) $ Amount reported for governmental activities in the statement of activities are different because:
activities, the cost of those assets is allocated over the estimated useful lives as depreciation expense. This is the amount by which capital outlay exceeded depreciation and disposals in the current period.

Capital outlay $ 26,572,759
Depreciation expense (15,130,602)
Total 11,442,157
while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of issuance cost, discounts and similar items when the debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. These amounts are the net effect of these differences in the treatments of long-term debt and related items.

Principal repayments 6,656,886 $
Bond premium and discount amortization (279,881)
Subscription acquisition (360,080)
Total 6,016,925
current period. 113,851
Net effect of internal activities are eliminated in the statement of activities. 134,701 use of current financial resources and, therefore, are not reported as expenditures in the governmental funds. (492,619)
contributions. In the statement of activities, pension expense includes the change in the net pension liability, and related change in pension amounts for deferred outflows of resources and deferred inflows of resources. (1,215,737) payments. In the statement of activities, OPEB expense includes the change in the net OPEB liability and related change in OPEB amounts for deferred outflows deferred inflows of resources. (348,020)
Change in Net Position of Governmental Activities 7,706,471 $ Governmental funds report capital outlays as expenditures. However, in the statement of The issuance of long term debt provides current financial resources to governmental Accrued interest for long-term liabilities. This is the net change in accrued interest in the Compensated absences expenses reported in the statement of activities do not require OPEB expenditures reported in the governmental funds includes the actual premium Pension expenditures reported in the governmental funds includes the annual required

City of Industry
Statement of Net Position
Proprietary Funds
June 30, 2025
The accompanying notes are an integral part of these financial statements. -26-
Civic
Recreational
Industrial Non-major
Industry Public Authority Property
Utilities Commission Industry and Housing
Water Electric Hills Expo Management
Fund Fund Center Fund Authority Fund Total
ASSETS
Current assets:

Cash and investments 2,303,448 $ 1,637,107 $ 133,814 $ 104,427 $ 4,178,796 $ Investments 6,473,300 9,665,411 - 3,611 16,142,322
Accounts receivable, net 768,735 3,185,382 174,069 29,606 4,157,792 Accrued interest 70,720 113,712 - 40 184,472
Lease receivable - - - 78,480 78,480
Inventory of materials and supplies 10,000 - 50,819 - 60,819 Prepaid items 302,353 6,040 9,074 - 317,467
Deposits - 30,000 3,000 - 33,000
Total Current Assets 9,928,556 14,637,652 370,776 216,164 25,153,148 Noncurrent assets:

Lease receivable - - - 91,491 91,491
Capital assets:

Capital assets not being depreciated 945,400 10,897,488 2,495,954 6,930,863 21,269,705 Capital assets being depreciated, net 13,580,002 13,474,840 13,736,232 3,013,320 43,804,394 Total Noncurrent Assets 14,525,402 24,372,328 16,232,186 10,035,674 65,165,590 Total Assets 24,453,958 39,009,980 16,602,962 10,251,838 90,318,738

LIABILITIES
Current liabilities:

Accounts payable 521,172 826,808 206,459 103,999 1,658,438 Deposits 60,719 1,605,996 39,000 1,300 1,707,015
Unearned revenue 2,689,824 - 120,841 139 2,810,804
Due to other funds 453,000 453,000 - - 906,000
Total Current Liabilities 3,724,715 2,885,804 366,300 105,438 7,082,257

DEFERRED INFLOWS OF RESOURCES
Deferred amounts from leases - - - 197,839 197,839
Total Deferred Inflows of Resources - - - 197,839 197,839

NET POSITION (DEFICIT)
Net investment in capital assets 14,525,402 24,372,328 16,232,186 10,035,674 65,165,590 Unrestricted 6,203,841 11,751,848 4,476 (87,113) 17,873,052 Total Net Position 20,729,243 $ 36,124,176 $ 16,236,662 $ 9,948,561 $ 83,038,642 $

City of Industry
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
For the Year Ended June 30, 2025
The accompanying notes are an integral part of these financial statements. -27-
Civic
Recreational
Industrial Non-major
Industry Public Authority Property
Utilities Commission Industry and Housing
Water Electric Hills Expo Management
Fund Fund Center Fund Authority Fund Total

OPERATING REVENUES
Water sales and service 4,522,557 $ - $ - $ - $ 4,522,557 $ Electric and solar energy sales - 6,151,249 - - 6,151,249 Event and rental revenues - - 2,731,402 371,180 3,102,582 Other revenue 95,695 919,339 20,172 89,042 1,124,248
Total Operating Revenues 4,618,252 7,070,588 2,751,574 460,222 14,900,636

OPERATING EXPENSES
Purchased water 334,692 - - - 334,692
Purchased electricity - 2,398,707 - - 2,398,707
General administration 3,359,692 3,020,783 1,535,445 57,078 7,972,998 Expo Center operations - - 1,882,295 - 1,882,295
Housing Authority operations - - - 777,541 777,541
Depreciation 781,233 1,090,904 556,260 148,433 2,576,830 Total Operating Expenses 4,475,617 6,510,394 3,974,000 983,052 15,943,063 Operating Income (Loss) 142,635 560,194 (1,222,426) (522,830) (1,042,427)

NONOPERATING REVENUES
Investment income 298,760 428,547 - 162 727,469
Lease income - interest - - - 9,050 9,050
Total Nonoperating Revenues 298,760 428,547 - 9,212 736,519 Income (Loss) Before Transfers and Contributions 441,395 988,741 (1,222,426) (513,618) (305,908)

TRANSFERS AND CAPITAL CONTRIBUTIONS
Transfers in - - 1,499,889 610,102 2,109,991
Total Transfers and capital contributions - - 1,499,889 610,102 2,109,991 Change in Net Position 441,395 988,741 277,463 96,484 1,804,083

NET POSITION
Beginning of Year 20,287,848 35,135,435 15,959,199 9,852,077 81,234,559 End of Year $ 36,124,176 20,729,243 $ 16,236,662 $ 9,948,561 $ 83,038,642 $

City of Industry
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2025
The accompanying notes are an integral part of these financial statements. -28-
Civic
Recreational
Industrial Non-major
Industry Public Authority Property
Utilities Commission Industry and Housing
Water Electric Hills Expo Management
Fund Fund Center Fund Authority Fund Total

CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers and users 3,970,179 $ 5,130,508 $ 2,667,296 $ 427,296 $ 12,195,279 $ Cash payments for water purchases (389,192) - - - (389,192) Cash payments for electric purchases - (2,278,640) - - (2,278,640) Cash payments for services and supplies (3,359,692) (896,055) (3,404,143) (961,398) (8,621,288) Net Cash Provided by (Used for)
Operating Activities 221,295 1,955,813 (736,847) (534,102) 906,159

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Cash received from other funds - - 1,499,889 610,102 2,109,991 Cash received/(repayments) to due to/from other funds 453,000 542,397 - - 995,397 Net Cash Provided by Noncapital and
Financing Activities 453,000 542,397 1,499,889 610,102 3,105,388

CASH FLOWS FROM CAPITAL AND

RELATED FINANCING ACTIVITIES
Acquisition and construction of capital assets (896,812) (1,109,964) (777,881) (88,309) (2,872,966) Lease receipts - - - 166,491 166,491
Net Cash Used for Capital and
Related Financing Activities (896,812) (1,109,964) (777,881) 78,182 (2,706,475)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 305,416 420,315 - 161 725,892
Net Cash Provided by Investing Activities 305,416 420,315 - 161 725,892 Net Change in Cash and Cash Equivalents 82,899 1,808,561 (14,839) 154,343 2,030,964 Cash and Cash Equivalents, Beginning of Year 8,693,849 9,493,957 148,653 45,186 18,381,645 Cash and Cash Equivalents, End of Year $ 11,302,518 8,776,748 $ 133,814 $ 199,529 $ 20,412,609 $

CASH AND CASH EQUIVALENTS
Cash 2,303,448 $ 1,637,107 $ 133,814 $ 104,427 $ 4,178,796 $ Investments 6,473,300 9,665,411 - 3,611 16,142,322
Total Cash and Cash Equivalents 8,776,748 $ 11,302,518 $ 133,814 $ 108,038 $ 20,321,118 $ (continued)

City of Industry
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2025
The accompanying notes are an integral part of these financial statements. -29-
Civic
Recreational
Industrial Non-major
Industry Public Authority Property
Utilities Commission Industry and Housing
Water Electric Hills Expo Management
Fund Fund Center Fund Authority Fund Total

RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH PROVIDED BY
(USED FOR) OPERATING ACTIVITIES
Operating income (loss) 142,635 $ 560,194 $ (1,222,426) $ (522,830) $ (1,042,427) $ Adjustments to reconcile operating income (loss)
to net cash provided by (used for) operating activities:

Depreciation 781,233 1,090,904 556,260 148,433 2,576,830 Abandoned construction in progress - 2,124,728 - - 2,124,728 Leases - - - (67,830) (67,830)
Changes in operating assets and liabilities:
(Increase) decrease in:

Accounts receivable (136,130) (1,910,080) (74,579) 34,872 (2,085,917) Prepaid items - - 1,578 - 1,578
Inventory of material & supplies 31,346 5,024 (80) - 36,290 Deposits - (30,000) - - (30,000)
Increase (decrease) in:

Deposits (125,792) (440,671) 14,299 (126,779) (678,943) Customer deposits 39,946 555,714 (2,200) - 593,460
Unearned revenue (511,943) - (9,699) 32 (521,610)
Total Adjustments 78,660 1,395,619 485,579 (11,272) 1,948,586 Net Cash Provided by (Used for)
Operating Activities 221,295 $ 1,955,813 $ (736,847) $ (534,102) $ 906,159 $

City of Industry
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2025
The accompanying notes are an integral part of these financial statements. -30-
Private-Purpose
Trust Fund
ASSETS
Cash $ 4,605,316
Investments 147,151,478
Accounts, net 3,199,142
Accrued interest 834,599
Property held for sale or disposition 50,064,421
Restricted assets:

Investments 35,438,449
Capital assets, net of depreciation 205,729,847
Total Assets 447,023,252

LIABILITIES
Current liabilities:

Accounts payable 1,876,376
Total Current Liabilities 1,876,376

NET POSITION
Restricted for Successor Agency 445,146,876
Total Net Position 445,146,876 $

City of Industry
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2025
The accompanying notes are an integral part of these financial statements. -31-
Private-Purpose
Trust Fund

ADDITIONS
Interest income 8,103,407 $
Rental and other income 36,832,479
Other revenues 1,838
Total Additions 44,937,724

DEDUCTIONS
General administration 103,980
Project expenses 2,426,656
Total Deductions 2,530,636
Change in Net Position 42,407,088

NET POSITION
Beginning of Year 402,739,788
End of Year $ 445,146,876

City of Industry
Notes to Financial Statements
June 30, 2025
-32-
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the City of Industry (the City), California, have been prepared in accordance with generally accepted accounting principles (GAAP) as applied to governmental agencies. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the City’s accounting policies are described below.

A) Description of the Reporting Agency
The City is a municipal corporation governed by an elected five-member council of which the mayor is appointed by the members of the city council. The accompanying financial statements present the financial activities of the City, which is the primary government, and the financial activities of its component units, which are entities for which the City is financially accountable. Although legally separate entities, blended component units are in substance, part of the City’s operations and are reported as an integral part of the City’s financial statements. Blended component units, include the Civic-Recreational-Industrial Authority (CRIA), the Industry Public Utilities Commission (IPUC), the Industry Public Facilities Authority (IPFA), and the Industry Property and Housing Management Authority (the Housing Authority). They are reported as blended for the following reasons: (1) the governing board is substantively the same as the primary government, and there is a financial benefit or burden relationship between the primary government and the component unit; and (2) the component unit provides services entirely, or almost entirely, to the primary government or otherwise exclusively, or almost exclusively, benefits the primary government even though it does not provide services directly to it.

Blended Component Units
CRIA was established to develop and finance projects within the City and is governed by a commission of five members. Four members are appointed by the City Council and one member by the Council of the City of La Puente. The City transfers funds to CRIA to fund operations and capital projects. CRIA is represented by capital projects and proprietary funds.

IPUC was established to provide reliable utility service at reasonable rates to the residents and to assist in the promotion and stability for business owners in the City. IPUC manages the Industry Waterworks System and the Industry Electric System. The board that governs the IPUC consists of the council members of the City. The IPUC is reported as a proprietary fund.

IPFA was established for the purpose of establishing a vehicle to reduce local borrowing costs, accelerate construction, repair and maintenance of needed public capital improvements. The Board consists of all members of the City Council. IPFA receives all of its funding from payments received on bonds issued by the City which IPFA owns as investments. IPFA is reported as part of the debt service fund.

City of Industry
Notes to Financial Statements
June 30, 2025
-33-
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) A) Description of the Reporting Agency (Continued)
The Housing Authority was established to manage the property and housing rental activity in the City. The Board consists of five members who are appointed by the City Council. The Housing Authority is reported as proprietary funds.

Fiduciary Fund
The City has elected to become the Successor Agency to the Industry Urban- Development Agency (SA to IUDA). The City and the SA to IUDA have separate Boards of Directors.

However, individuals serving on the City’s Council also serve on the SA to IUDA Board. The SA to IUDA is reported as private-purpose trust fund of the City that is fiduciary in nature and is reported in the statements of fiduciary net position and changes in fiduciary net position within the City’s fiduciary funds.

Complete financial statements of CRIA, SA to IUDA and IPFA may be obtained from the finance department, which is located at 15625 Mayor Dave Way, City of Industry, California 91744. Separate financial statements are not prepared for IPUC and Housing Authority.

B) Government-Wide Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the primary government and its component units. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support.

As a general rule, the effect of interfund activity has been eliminated from the governmentwide financial statements. All internal balances in the statement of net position have been eliminated except those representing balances between the governmental activities and the business-type activities, which are presented as internal balances.

The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. The types of transactions reported as program revenues for the City are reported in three categories:

1. Charges for services,

2. Operating grants and contributions, and

3. Capital grants and contributions.

Charges for services include revenues from customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function. Grants and contributions include revenues restricted to meeting the operational or capital requirements of a particular function. Taxes and other items not properly included among program revenues are reported instead as general revenues.

City of Industry
Notes to Financial Statements
June 30, 2025
-34-
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C) Fund Financial Statements
The accounts of the City are organized on the basis of funds or account groups, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for by providing a separate set of self-balancing accounts, which are comprised of each fund’s assets, deferred outflows of resources, liabilities, deferred inflows of resources, fund equity, revenues and expenditures or expenses, as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.

Fund financial statements for the primary government are governmental and proprietary funds, which are presented after the government-wide financial statements. These statements display information about major funds individually and nonmajor funds in the aggregate for governmental and enterprise funds. Fiduciary statements include financial information for private purpose trust funds and custodial funds. Fiduciary funds of the City primarily represent assets held by the City in a trust or custodial capacity for other individuals or organizations.

The City reports the following major governmental funds:

General Fund - This is the City ‘s primary operating fund. It accounts for all activities of the general government, except those required to be accounted for in another fund.

City Capital Projects Funds - The Capital Projects Funds are used to account for financial resources to be used for the acquisition and construction of major capital projects (other than those financed by Proprietary Funds).

City Debt Service Fund - The Debt Service Funds are used to account for the accumulation of resources for, and the payment of, general long-term debt, principal, interest, and related costs.

Industry Public Facilities Authority Debt Service Fund - The Industry Public Facilities Authority Debt Service Fund is used to account for the accumulation of resources for, and the payment of the Authority ‘s long-term debt, principal, interest, and related costs.

City of Industry
Notes to Financial Statements
June 30, 2025
-35-
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C) Fund Financial Statements (Continued)
The City reports the following major proprietary funds:

Water Enterprise Fund - This fund accounts for activities of providing water services to the public.

Electric Enterprise Fund - This fund accounts for activities of providing limited electrical services to the public.

Civic-Recreational-Industrial Authority Industry Hills Expo Center Enterprise Fund - This fund accounts for space rentals for events and equestrian activities to the general public.

Additionally, the City reports the following fund types:

Governmental Fund Types
Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than special assessments, expendable trusts, or major capital projects), that are restricted to expenditures for special purposes.

Fiduciary Fund Types
The Private-Purpose Trust Fund is a fiduciary fund type used by the City to report trust arrangements under which the principal and income benefits other governments. This fund reports the assets, liabilities and activities of the Successor Agency of the Industry UrbanDevelopment Agency.

D) Measurement Focus, Basis of Accounting, and Financial Statement Presentation The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of accounting. Measurement focus indicates the type of resources being measured such as current financial resources or economic resources. The basis of accounting indicates the timing of transactions or events for recognition in the financial statements.

The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary and fiduciary funds.

City of Industry
Notes to Financial Statements
June 30, 2025
-36-
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D) Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)
Under the economic resources measurement focus, all assets, deferred outflows of resources, liabilities, and deferred inflows of resources (whether current or noncurrent) associated with their activity are included on their statements of net position.

Operating statements present increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Nonexchange transactions, in which the City gives (or receives) value without directly receiving (or giving) equal value in exchange include property taxes, grants, entitlements, and donations. On an accrual basis, property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenues as soon as all eligibility requirements imposed by the provider have been met.

Proprietary funds distinguish operating revenues and expenses from nonoperating items.

Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund ‘s principal ongoing operations. The principal operating revenues of the proprietary funds are utility charges for service and event revenues. Operating expenses for proprietary funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under the current financial resources measurement focus, only current assets, current liabilities, and deferred inflows of resources are generally included on their balance sheets. The reported fund balance is considered to be a measure of “available spendable resources.” Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in fund balance. Accordingly, they are said to present a summary of sources and uses of “available spendable resources” during a period. Noncurrent portions of long-term receivables are reported on the funds‘ balance sheets in spite of their spending measurement focus.

Under the modified accrual basis of accounting revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, except for principal and interest on general long-term liabilities, claims and judgments, and compensated absences, which are recognized as expenditures to the extent they have matured. General capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities are reported as other financing sources.

City of Industry
Notes to Financial Statements
June 30, 2025
-37-
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D) Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)
Property taxes, franchise fees, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the government.

E) Cash and Investments
For purposes of the statement of cash flows, the City considers all highly liquid investments purchased with an initial maturity of three months or less to be cash equivalents.

Short-term investments are reported at amortized cost, which approximates fair value.

Investments that exceed more than one year in maturity and that are traded on a national exchange are valued at their quoted market price. Certain investments that exceed more than one year in maturity may be valued by pricing models that require inputs to the valuation methodology that include quoted prices of similar assets and certain observable inputs.

F) Accounts Receivable
Accounts receivable are stated at the amount management expects to collect from outstanding balances. A receivable balance is charged off in the period in which the receivable is deemed uncollectible. Management evaluates uncollectible amounts based on its assessment of the current status of individual accounts.

G) Interfund Transactions
Activities between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as due to/from other funds (i.e., current portion of interfund loans) and advances from/to other funds (i.e., noncurrent portion of interfund loans). Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as internal balances.

City of Industry
Notes to Financial Statements
June 30, 2025
-38-
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) H) Inventories
Inventories of the Industry Hills Expo Center Enterprise Fund consist of food and beverages.

Inventories of IPUC Enterprise Fund consist of materials and supplies. Inventories of operating supplies, including fuel are maintained and accounted for in the General Fund. The inventories are carried at the lower of cost or net realizable value on the first-in, first-out basis of accounting.

I) Prepaid Items
Prepaid items are payments made to vendors for services or insurance premiums that will benefit periods beyond the fiscal year ended.

J) Property Held for Sale or Disposition
Property held for sale or disposition is reported in the fiduciary fund financial statements at the lower of cost or net realizable value.

K) Restricted Assets
Certain proceeds of debt issues, as well as certain resources set aside for their repayment, are classified as restricted assets in the financial statements because their use is limited by applicable bond covenants.

L) Deferred Outflows and Inflows of Resources
In addition to assets, the statement of net position and governmental funds balance sheet will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to a future period and so will not be recognized as an outflow of resources (expense/expenditure) until that time. The City has the following items that qualify for reporting in this category:
 Unamortized loss on bond defeasance reported in the government-wide statement of net position and the fiduciary funds financial statements. An unamortized loss on bond defeasance results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the life of the refunding debt.

City of Industry
Notes to Financial Statements
June 30, 2025
-39-
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) L) Deferred Outflows and Inflows of Resources (Continued)  Deferred outflow related to pensions equal to employer contributions made after the measurement date of the net pension liability. These amounts will be recognized in the next fiscal year.
 Deferred outflow related to OPEB for change in assumptions. These amounts are amortized over a closed period equal to the average of the expected remaining service lives of all employees that are provided with OPEB through the plan.  Deferred outflow related to OPEB for differences between actual and expected experiences. These amounts are amortized over a closed period equal to the average of the expected remaining service lives of all employees that are provided with OPEB through the plan.
 Deferred outflow related to pensions resulting from the difference in projected and actual earnings on investments of the pension plan fiduciary net position. These amounts are amortized over five years.
 Deferred outflows related to pensions for the changes in employer ‘s proportion and differences between the employer ‘s contributions and the employer’s proportionate share of contributions. These amounts are amortized over a closed period equal to the average of the expected remaining service lives of all employees that are provided with pensions through the plans.

In addition to liabilities, the statement of net position and governmental funds balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to a future period and will not be recognized as an inflow of resources (revenue) until that time. The City has the following items that qualify for reporting in this category:
 Deferred inflow related to OPEB resulting from the difference in projected and actual earnings on investments of the OPEB plan fiduciary net position. These amounts are amortized over five years.
 Deferred inflow related to pension and OPEB for differences between actual and expected experiences. These amounts are amortized over a closed period equal to the average of the expected remaining service lives of all employees that are provided with pension and OPEB through the plans.
 Deferred inflows related to pensions for the changes in employer’s proportion and differences between the employer’s contributions and the employer’s proportionate share of contributions. These amounts are amortized over a closed period equal to the average of the expected remaining service lives of all employees that are provided with pensions through the plans.

City of Industry
Notes to Financial Statements
June 30, 2025
-40-
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) M) Capital Assets and Depreciation
Capital assets, including infrastructure, are recorded at cost where historical records are available and at an estimated original cost where no historical records exist. Donated capital assets are reported at acquisition value on the date of donation. Generally capital asset purchases in excess of $5,000 are capitalized if they have an expected useful life of three years or more. Capital assets include public domain (infrastructure) general capital assets consisting of certain improvements including roads, streets, sidewalks, medians, and storm drains.

If a cost does not extend an asset’s useful life, increase its productivity or improve its operating efficiency the cost is regarded as repairs and maintenance and recognized as an expense as incurred; if it does, the cost is regarded as major renewals and betterments and capitalized.

Capital assets used in operations are depreciated over their estimated useful lives using the straight-line method in the government-wide financial statements and in the fund financial statements of the proprietary fund types. Depreciation is charged as an expense against operations and accumulated depreciation is reported on the respective statement of net position.

The SA to IUDA has capital assets that are not depreciated as they will be transferred to another entity that will be responsible for the maintenance of the capital assets at which time depreciation will commence.

The range of lives used for depreciation purposes for each capital asset class is as follows:

Buildings and improvements 45 years
Equipment 3 to 10 years
Infrastructure 20 to 50 years
N) Unearned Revenue and Unavailable Revenue
Unavailable revenues arise when revenue susceptible to accrual does not meet both the “measurable” and “available” criteria for recognition in the current period. Unearned revenues also arise when resources are received by the government before it has a legal claim to them.

In subsequent periods, when both revenue recognition criteria are met or when the government has a legal claim to the resources, unearned revenue reported as liabilities and unavailable revenue reported as deferred inflows of resources are removed from the balance sheet and revenues are recognized.

City of Industry
Notes to Financial Statements
June 30, 2025
-41-
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) O) Property Taxes
The valuation of property is determined as of March 1 each year and equal installments of taxes levied upon secured property become delinquent on the following 10th of December and April. Taxes on unsecured property are due when billed and become delinquent after August 31. If taxes are not paid on or before the date and time they become delinquent, a penalty of 10% is added. Unsecured property accrues an additional penalty of 1% per month beginning the first day of the third month following the delinquency date.

An initiative Constitutional Amendment, commonly known as the “Jarvis-Gann Initiative,” providing for, among other things, certain property tax limitations, was approved as Proposition 13 on the June 6, 1978, statewide election. The principal thrust of Proposition 13 is to limit the amount of ad valorem taxes on real property to 1% of “full cash value,” to define “full cash value” as the 1975-76 full cash value, to limit annual increases to two percent and to provide for reassessment after sale, transfer, or construction.

P) Bond Issuance Costs and Premiums/Discounts
Bond premiums and discounts in the government-wide and fiduciary funds financial statements are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are recognized as expense in the period incurred in the statement of changes in net position. In the governmental fund financial statements, governmental funds report bond premiums and discounts as other financial sources. Bond issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

Q) 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 the plans’ fiduciary net position have been determined on the 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.

R) Other Postemployment Benefits (OPEB) Plan
For purposes of measuring the net OPEB liability (asset), deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the plans and additions to/deductions from the plans’ fiduciary net position have been determined on the 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.

City of Industry
Notes to Financial Statements
June 30, 2025
-42-
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) S) Compensated Absences
It is the City’s policy to permit employees to accumulate earned but unused vacation and sick leave (compensated absences). All vacation pay and eligible sick leave pay is accrued when incurred in the government-wide financial statements. Compensated absences are reported in governmental funds only if they matured (i.e., unused reimbursable leave still outstanding following an employee’s termination from employment). Typically, the General Fund has been used in prior years to liquidate the liability for compensated absences.

T) Net Position
Net position in the government-wide and proprietary fund financial statements is classified as following:

Net Investment in Capital Assets - This component of net position consists of capital assets, net of accumulated depreciation, and reduced by outstanding debt attributed to the acquisition of these assets, net of unspent debt proceeds, related deferred outflows and inflows of resources, and retention payable.

Restricted - This component of net position consists of assets, net of any related liabilities, which have had restrictions imposed on them by external creditors, grantors, contributors, or laws or regulations of other governments or laws through constitutional provisions or enabling legislations.

Unrestricted - This component of net position consists of amounts that do not meet the definition of net investment in capital assets or restricted net position.

When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources first and then unrestricted resources, as they are needed.

U) Fund Balance
In the governmental fund financial statements, fund balances are classified in the following categories:

Nonspendable - items that cannot be spent because they are not in spendable form or items that are legally or contractually required to be maintained intact.

Restricted - restricted fund balances are amounts with constraints placed on their use that are either (a) externally imposed by creditors, grantors, contributors, or laws or regulations of other governments; (b) imposed by law by constitutional provisions or enabling legislation.

City of Industry
Notes to Financial Statements
June 30, 2025
-43-
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) U) Fund Balance (Continued)
Committed - committed fund balances encompass the portion of net fund resources, the use of which is constrained by limitations that the City imposes upon itself at its highest level of decision-making authority (the City Council) through resolutions and that remain binding unless removed in the same manner.

Assigned - assigned fund balances are amounts that are constrained by the City’s intent to be used for specific purposes. The intent can be established at either the highest level of decision making, or by a body or an official designated for that purpose. The City Council is authorized for this purpose.

Unassigned - includes the residual balance for the government’s general fund and includes all spendable amounts not contained in other classifications. In other funds, the unassigned classification is used only to report a deficit balance resulting from overspending for specific purposes for which amounts had been restricted, committed, or assigned.

When both restricted and unrestricted resources are available in a fund, expenditures are to be paid first from restricted resources, and then unrestricted resources in the order of committed, assigned, then unassigned.

V) Estimates
The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, deferred outflows of resources, liabilities and deferred inflows of resources at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates.

W) Implementation of New GASB Pronouncement
The City adopted the following pronouncements:

GASB Statement No. 101 - Compensated Absences. The primary objective of this Statement is to establish accounting and financial reporting guidance for compensated absences, which are leave benefits that are attributable to services already rendered, relate to rights that accumulate, and are more likely than not to be used for time off or otherwise paid to employees. The Statement requires governments to recognize a liability for certain types of compensated absences, such as vacation, sick leave, and paid time off, when the leave is earned rather than when it is taken.

City of Industry
Notes to Financial Statements
June 30, 2025
-44-
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) W) Implementation of New GASB Pronouncement (Continued) The adoption of GASB Statement No. 101 did not result in a restatement of beginning net position, as the entity’s existing policies and practices for compensated absences were consistent with the provisions of the Statement. The entity has updated its disclosures to conform with the new requirements.

GASB Statement No. 102 - Certain Risk Disclosures. The primary objective of this Statement is to provide users of financial statements with better insight into risks that could have a material impact on the government’s ability to provide services or meet obligations. These risks include concentration in revenue sources, investments, or loans; constraints imposed by external parties or legislation; and other conditions that may expose the entity to significant vulnerabilities.

Upon evaluation, management determined that there were no concentrations, constraints, or vulnerabilities that met the disclosure criteria under GASB Statement No. 102 for the current fiscal year. The entity has incorporated the applicable disclosure considerations in accordance with the new requirements.
2) CASH AND INVESTMENTS
As of June 30, 2025, cash and cash investments are classified in the accompanying financial statements as follows:

Government-Wide Fiduciary
Statement Fund Statement
of Net Position of Net Position Total
Cash and investments:

Unrestricted cash and investments:

Cash 14,950,077 $ 4,605,316 $ 19,555,393 $
Investments 361,541,999 147,151,478 508,693,477
Investments with fiscal agent 327,503,471 - 327,503,471 Restricted cash and investments:

Investment - 35,438,449 35,438,449
Investment in Section 115 Trust 6,226,595 - 6,226,595
Investment with fiscal agent 97,865,740 - 97,865,740
Total Cash and Investments 808,087,882 $ 187,195,243 $ 995,283,125 $

City of Industry
Notes to Financial Statements
June 30, 2025
-45-
2) CASH AND INVESTMENTS (Continued)
As of June 30, 2025, cash and investments consisted of the following:

Cash and investments:

Cash on hand 18,800 $
Deposits with financial institutions 19,536,593
Investments 544,131,926
Investment in Section 115 Trust - strategy 1 pool 6,226,595 Investments with fiscal agent 425,369,211
Total Cash and Investments 995,283,125 $
A) Demand Deposits
The carrying amount of the City’s cash deposits was $19,536,593 as of June 30, 2025. Bank balances are insured or collateralized with securities held by the pledging financial institutions in the City’s name as discussed below. 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 allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City’s total cash deposits. The City may waive collateral requirements for cash deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation (FDIC). The City, however, has not waived the collateralization requirements. As of June 30, 2025 City’s deposits are federally insured or collateralized.

City of Industry
Notes to Financial Statements
June 30, 2025
-46-
2) CASH AND INVESTMENTS (Continued)
B) Investments Authorized by the City’s Investment Policy and California Government Code Under provision of the City’s Investment Policy, and in accordance with Section 53601 of the California Government Code, the City may invest in the following types of investments:

Maximum Maximum
Maximum Percentage Investment
Authorized Investment Type Maturity Allowed in One Issuer U.S. Treasury Obligations 5 years None None
U.S. Government Sponsored Enterprise
Securities 5 years None None
Money Market Funds (Composed Entirely of
Security of U.S. Government and Agencies) N/A 20% None
Bankers Acceptances 180 days 40% 30%
Commercial Paper 270 days 25% 10%
Negotiable Certificates of Deposit 5 years 30% None
Non-Negotiable Certificates of Deposit 5 years None None Local Agency Investment Fund (LAIF) N/A None None
Repurchase Agreements 1 year None None
Los Angeles County Investment Pool N/A None None
Local Agency Bonds 5 years None None
U.S. Corporate Bonds/Notes 5 years 30% None
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City of Industry
Notes to Financial Statements
June 30, 2025
-47-
2) CASH AND INVESTMENTS (Continued)
C) Investments Authorized by Debt Agreements
Investments of debt proceeds held by a bond trustee are governed by provisions of the debt agreements rather than the general provisions of the California Government Code or the City’s investment policy. The table below identifies the investment types that are authorized for investments held by a bond trustee. The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk.

Maximum Maximum
Maximum Percentage Investment
Authorized Investment Type Maturity Allowed in One Issuer U.S. Treasury Obligations None None None
U.S. Government Sponsored Enterprise Securities None None None Money Market Funds None None None
Certificates of Deposit None None None
Commercial Paper None None None
Banker's Acceptances 18 Months None None
U.S. Corporate Bonds/Notes None None None
Municipal Bonds None None None
Noninvestment Grade Bonds None 10% None
Exchange Traded Funds None None None
Mortgage-Backed Securities None None None
Investment Contracts None None None
LAIF None None None
Foreign Government Bonds None None None
Foreign Corporate Bonds/Notes None None None
D) Risk Disclosures
Interest Rate Risk
Interest rate risk is the risk of changes in market interest rates that will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment the greater the sensitivity of its fair value to changes in the market interest rates. One of the ways that the City and its component units manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer-term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.

City of Industry
Notes to Financial Statements
June 30, 2025
-48-
2) CASH AND INVESTMENTS (Continued)
D) Risk Disclosures (Continued)
The City and its component units and fiduciary funds monitor the interest rate risk inherent in its portfolio by measuring the weighted average maturity of its portfolio.

Weighted
Average
Investment Type Amounts Maturity
Investments - unrestricted:

Money market funds 231,849,705 $ N/A
Commercial paper 163,170,277 10.08
LAIF 113,574,375 N/A
Investments - restricted:

Commercial paper 18,642,673 0.21
Money market funds 22,019,029 N/A
U.S. Agencies 147,822,967 13.3
U.S. Treasury obligation 139,117,920 6.68
Section 115 Trust- strategy 1 pool 6,226,595 N/A
Investment held by fiscal agent:

Money market funds 133,304,191 N/A
Total 975,727,732 $
Credit Risk
Credit risk is generally the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical organization. Presented below is the minimum rating required by Section 53601 and Section 53635 of the California Government Code, Section 33603 of the Health and Safety Code, the City and its component unit’s investment policy, or debt agreements, and the actual rating as of year-end for each investment type.

Minimum Total as of
Investment Type Legal Rating Aaa/P-1 AA/Aa - A/A Not Rated June 30, 2025 Investments - unrestricted:

Money market funds N/A $ - - $ 231,849,705 $ 231,849,705 $ Commercial paper Aaa/P-1 92,374,338 70,795,939 - 163,170,277 LAIF N/A - - 113,574,375 113,574,375
Investments - restricted:

Commercial paper N/A - - 18,642,673 18,642,673
Money market funds N/A - - 22,019,029 22,019,029
U.S. Agencies N/A - - 147,822,967 147,822,967
U.S. Treasury obligation N/A - - 139,117,920 139,117,920 Section 115 Trust - strategy 1 pool N/A - - 6,226,595 6,226,595 Investment held by fiscal agent:

Money market funds N/A - - 133,304,191 133,304,191
Total 92,374,338 $ 70,795,939 $ 812,557,455 $ 975,727,732 $

City of Industry
Notes to Financial Statements
June 30, 2025
-49-
2) CASH AND INVESTMENTS (Continued)
E) State of California Local Agency Investment Fund
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF. Currently, LAIF does not have an investment rating.

LAIF has a minimum $5,000 transaction amount in increments of $1,000 with a maximum of 15 transactions (combination of deposits and withdrawals) per month. LAIF requires a oneday prior notice for deposits and withdrawals of $10 million or more.

F) Investment in City Bonds
As of June 30, 2025, the IPFA has investments in City bonds in the amounts totaling $40,053,611. These investments are reported in the Industry Public Facilities Authority Debt Service Fund. These assets arise from interfund activity and have been eliminated from the government-wide financial statements.

G) Fair Value Measurement
The City categorizes its fair value measurement within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the relative inputs used to measure the fair value of the investments. Level 1 inputs are quoted prices in active markets for identical assets, Level 2 inputs are valued using a matrix pricing technique in where investments are valued based on the investments’ relationship to benchmark quoted prices, and Level 3 inputs are significant unobservable inputs.

The City has the following recurring fair value measurements as of June 30, 2025:

Measurement Input
Investment Type Level 1 Level 2 Level 3 Uncategorized Total Investments - unrestricted:

Money market funds - $ 231,849,705 $ - $ - $ 231,849,705 $ Commercial paper - 163,170,277 - - 163,170,277
LAIF - - - 113,574,375 113,574,375
Investments - restricted:

Commercial paper - 18,642,673 - - 18,642,673
Money market funds - - - 22,019,029 22,019,029
U.S. Agencies - 147,822,967 - - 147,822,967
U.S. Treasury obligation - 139,117,920 - - 139,117,920
Section 115 Trust - strategy 1 pool - - - 6,226,595 6,226,595 Investment held by fiscal agent:

Money market funds - 133,304,191 - - 133,304,191
Total - $ 833,907,733 $ - $ 141,819,999 $ 975,727,732 $

City of Industry
Notes to Financial Statements
June 30, 2025
-50-
2) CASH AND INVESTMENTS (Continued)
H) Concentration of credit risk
The City is exposed to concentration of credit risk when deposits or investments are held with a single issuer in excess of policy limits. The City’s investments in Federal Home Loan Banks represented 11% of the total investment portfolio.
3) ACCOUNTS RECEIVABLE
As of June 30, 2025, accounts receivable for governmental funds consisted of the following:

Nonmajor
General Capital Governmental
Fund Projects Funds Funds Total
Sales tax receivable 6,106,892 $ - $ - $ 6,106,892 $
Measure W 959,985 - 1,626,979 2,586,964
Other 643,338 14 9,869 653,221
Total 7,710,215 $ 14 $ 1,636,848 $ 9,347,077 $
4) NOTES RECEIVABLE
As of June 30, 2025 notes receivable consisted of the following:

Governmental
Activities
Notes receivable:

City of La Puente 1,128,980 $
San Gabriel Valley Water and Power LLC 20,000,000
Total Notes Receivable 21,128,980 $

City of Industry
Notes to Financial Statements
June 30, 2025
-51-
4) NOTES RECEIVABLE (Continued)
A) City of La Puente Loan
In October 2015, The City entered into an agreement with the City of La Puente to mitigate noise, traffic and railroad impact and for other public purposes. As part of the agreement, the City of Industry agreed to lend to the City of La Puente, and the City of La Puente agreed to borrow and repay to the City, the loan in the amount of $5,952,908 for La Puente to use in constructing a sound wall along the north side of Valley Boulevard and the railroad tracks on the south side of Valley Boulevard along with other public improvements. The City of La Puente has borrowed a total of $1,801,762 of the original amount of the loan. The project has been completed and the City of La Puente does not plan on borrowing any additional funds.

In October 2019, the loan agreement has been modified to pay off the remaining $1,422,945 over 28 years. Beginning November 1, 2019, the annual payment will be $53,287 including interest at 0.33%.

B) San Gabriel Valley Water and Power, LLC
The City entered into master lease agreement (the Lease) with San Gabriel Valley Water and Power, LLC (SGVWP) and leased properties to SGVWP for a period of twenty-five years for the development of solar projects. As part of the Lease, as further amended, the City agreed to advance $20,000,000 for funding of the project development costs. As of June 30, 2025 the outstanding balance of the advance was in the amount of $20,000,000. Also refer to Note 17 for more contingency disclosures.

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City of Industry
Notes to Financial Statements
June 30, 2025
-52-
5) LEASE RECEIVABLE
The City, acting as lessor, leases land and buildings under long-term, noncancelable lease agreements. The leases expire at various dates through 2026 and provide various renewal options ranging from three months to six years. During the year ended June 30, 2025, the City recognized $2,227,034 and $255,734 in lease revenue and interest revenue, respectively, pursuant to these contracts.

Certain leases provide for increases in future minimum annual rental payments based on defined increases in the Consumer Price Index, subject to certain minimum increases.

Total future minimum lease payments to be received under lease agreements are as follows:

Year Ending
June 30, Principal Interest Total
2026 1,710,413 $ 192,104 $ 1,902,517 $
2027 1,590,428 134,440 1,724,868
2028 1,221,977 76,902 1,298,879
2029 570,366 48,035 618,401
2030 573,552 25,596 599,148
2031 - 3032 516,180 10,052 526,232
Total 6,182,916 $ 487,129 $ 6,670,045 $
6) INDUSTRY CONVALESCENT HOSPITAL
During 1992, the City Council passed a resolution stating that periodic advances made to Industry Convalescent Hospital dba: El Encanto Healthcare and Habilitation Center in the past, as well as currently, are treated as loans. The note is payable on demand with simple interest at 6% per annum on the unpaid balance. As of June 30, 2025, the unpaid note balance amounted to $35,739,364 and accrued interest amounted to $36,498,144. As the collectability of this note and accrued interest is uncertain, the loan amounts are offset with allowance for doubtful account in the financial statements; and the City will recognize the collections on the note receivable as revenue as the amounts are collected.

The Hospital leased property from the Successor Agency (SA) to IUDA for $1 a year, which was renewed annually, and at the time of renewal the lease may be terminated or the lease payment renegotiated by SA to IUDA. In November 2018, the SA to IUDA sold the property to the City. The City is currently working with the Hospital on the new lease agreement. During the June 30, 2025 the City incurred expenses on behalf of the Hospital totaling $1,028,019 relating to contract labor, security, and repairs and maintenance.

City of Industry
Notes to Financial Statements
June 30, 2025
-53-
7) PREPAID ITEMS
As of June 30, 2025, government-wide financial statements report the following prepaid items:

Governmental Business-Type
Activities Activities Total
Prepaid bond insurance 2,939,312 $ - $ 2,939,312 $
Other prepaid items 551,243 317,467 868,710
Total 3,490,555 $ 317,467 $ 3,808,022 $
As of June 30, 2025, fund financial statements reported the following prepaid items:

Governmental Funds Enterprise Funds
IPUC IPUC Industry
General City Debt Water Electric Hills - Expo
Fund Service Fund Total Fund Fund Center Fund Total
Prepaid bond insurance - $ 2,939,312 $ 2,939,312 $ - $ - $ - $ - $ Other prepaid items 551,243 - 551,243 302,353 6,040 9,074 317,467 Total 551,243 $ 2,939,312 $ 3,490,555 $ 302,353 $ 6,040 $ 9,074 $ 317,467 $ 8) INTERFUND TRANSACTIONS
All interfund assets, liabilities, fund equity, revenues, expenditures, and operating transfers have been eliminated in the statement of net position and the statement of activities.

A) Due to/from Other Funds
Due to/from other funds consisted of the following as of June 30, 2025:

City Capital
General Projects Nonmajor
Due to Other Fund Fund Fund Funds Total
Governmental funds:

General Fund - $ 1,415,736 $ 1,033,236 $ 2,448,972 $
Nonmajor Funds 104,762 76,447 - 181,209
Enterprise funds:

IPUC Water Fund 453,000 - - 453,000
IPUC Electric Fund 453,000 - - 453,000
Total 1,010,762 $ 1,492,183 $ 1,033,236 $ 3,536,181 $
Due from Other Funds
Governmental Funds
The majority of the interfund balances were a result of routine short-term borrowing or reimbursement of expenditures.

City of Industry
Notes to Financial Statements
June 30, 2025
-54-
8) INTERFUND TRANSACTIONS (Continued)
B) Advances to/from Other Fund
Advances to/from other funds consisted of the following as of June 30, 2025:

Advance to
Other Funds
Governmental
Fund
Advance from Other Funds General Fund
Governmental fund:

Industry Public Facilities Authority
Debt Service Fund 48,466,836 $
Total 48,466,836 $
On December 1, 2015, the IPFA entered into loan agreement with the City to borrow $51,460,000 for the purchase of City of Industry Subordinate Sales Tax Revenue Bonds, Series 2015B (Taxable). The loan bears interest ranging from 2.75% to 7.75% annually, due February 1 and August 1 each year. The principal payments are due on February 1 each year and range from $520,000 to $3,905,000.

As of June 30, 2025, the total outstanding balance amounted to $48,466,836 (principal of $47,005,000 and accrued interest of $1,461,836). Interest revenue for the City and interest expense for the IPFA in the amount of $3,561,760 is eliminated in the statement of activities.

The repayment schedule for the advances is as following:

Year Ending
June 30, Principal Interest Total
2026 680,000 $ 3,527,898 $ 4,207,898 $
2027 715,000 3,490,158 4,205,158
2028 755,000 3,448,330 4,203,330
2029 805,000 3,401,898 4,206,898
2030 860,000 3,349,976 4,209,976
2031 to 2035 5,275,000 15,756,466 21,031,466
2036 to 2040 7,505,000 13,526,702 21,031,702
2041 to 2045 10,810,000 10,227,688 21,037,688
2046 to 2050 15,695,000 5,344,012 21,039,012
2051 3,905,000 302,638 4,207,638
Total 47,005,000 $ 62,375,766 $ 109,380,766 $

City of Industry
Notes to Financial Statements
June 30, 2025
-55-
8) INTERFUND TRANSACTIONS (Continued)
C) Transfers
Transfers in and transfers out for the year ended June 30, 2025, consisted of the following:

City City Nonmajor
General Capital Debt Governmental
Transfers In Fund Projects Funds Service Fund Funds Total Governmental funds:

General Fund - $ 27,152,041 $ 33,060,000 $ 488,000 $ 60,700,041 $ Capital Projects Funds 27,145,389 - - - 27,145,389
City Debt Service Fund 35,965,381 2,922,441 - - 38,887,822 IPFA Debt Service Fund 7,480 - - - 7,480
Nonmajor Governmental Funds 3,460,148 776,888 - - 4,237,036 Proprietary funds:

Expo Center Fund - - - 1,499,889 1,499,889
IPHMA Fund 524,000 86,102 - - 610,102
Total 67,102,398 $ 30,937,472 $ 33,060,000 $ 1,987,889 $ 133,087,759 $ Governmental Funds
Transfers Out
The following transfers were made:
 $27,145,389 Transfer to CIP fund project expenditures.  $35,965,381 Transfer to debt service funds to for debt service.  $7,480 Transfer to cover fiscal agent fees.
 $4,237,036 Transfer to fund CRIA expenditures and capital projects.  $33,060,000 Transfer to general fund for excess proceeds from Sales Tax Bonds  $488,000 Transfer to fund prop A projects.
 $2,922,441 Interest income earned on bond proceeds for projects funds transferred to Debt Service.
 $610,102 Transfer to IPHMA Fund to cover housing project costs.  $1,499,889 Transfer to fund expo center operations.
 $27,152,041 Capital projects funds to reimburse General Fund for project costs.

City of Industry
Notes to Financial Statements
June 30, 2025
-56-
9) CAPITAL ASSETS
A) Governmental Activities
A summary of changes in capital asset activity for the year ended June 30, 2025, is as follows:

Balance at Prior period Transfer and Balance at
Capital Assets July 1, 2024 Adjustment Additions Deletions Reclassification June 30, 2025 Primary government:

Governmental activities:

Capital assets, not being depreciated:

Land 110,604,835 $ - $ - $ - $ - $ 110,604,835 $
Construction in progress 32,671,161 13,880,861 26,122,643 - (10,112,424) 62,562,241 Total capital assets, not being
depreciated 143,275,996 13,880,861 26,122,643 - (10,112,424) 173,167,076 Capital assets, being depreciated:

Buildings and improvements 120,670,145 - - - - 120,670,145 Machinery and equipment 1,926,746 - - - - 1,926,746
Furniture and fixtures 4,581,832 - - - - 4,581,832
Infrastructure 343,029,178 - - - 10,112,424 353,141,602 Subscription asset - - 450,116 - - 450,116
Total capital assets, being depreciated 470,207,901 - 450,116 - 10,112,424 480,770,441 Less accumulated depreciation/amortization:

Buildings and improvements (79,749,182) - (2,912,844) - - (82,662,026) Machinery and equipment (1,947,336) - (1,137) - - (1,948,473) Furniture and fixtures (4,546,569) - - - - (4,546,569)
Infrastructure (114,740,654) - (12,088,824) - - (126,829,478) Subscription asset - - (127,797) (127,797)
Total accumulated depreciation/amortization (200,983,741) - (15,130,602) - - (216,114,343) Total capital assets, being
depreciated/amortized, net 269,224,160 - (14,680,486) - 10,112,424 264,656,098 Total Governmental Activities 412,500,156 $ 13,880,861 $ 11,442,157 $ - $ - $ 437,823,174 $ Depreciation expense was charged to the primary government in the governmental activities in the amount of $15,130,602 to the following functions:

General government 740,018 $
Support services 2,009,802
Community development 134,617
Community services 1,344,030
Public safety 3,093,718
Public works 7,808,417
Total depreciation expense 15,130,602 $

City of Industry
Notes to Financial Statements
June 30, 2025
-57-
9) CAPITAL ASSETS (Continued)
B) Business-Type Activities
A summary of changes in capital asset activity for the year ended June 30, 2025, is as follows:

Balance at Transfer and Balance at
Capital Assets July 1, 2024 Additions Deletions Reclassification June 30, 2025 Business-type activities:

Capital assets, not being depreciated:

Land 6,764,880 $ - $ - $ - $ 6,764,880 $
Water rights 441,200 - - - 441,200
Construction in progress 14,552,172 2,872,966 (2,124,728) (1,236,785) 14,063,625 Total capital assets, not being
depreciated 21,758,252 2,872,966 (2,124,728) (1,236,785) 21,269,705 Capital assets, being depreciated:

Buildings and improvements 55,193,845 - - - 55,193,845
Equipment, furniture and fixtures 1,322,648 - - - 1,322,648 Infrastructure 33,782,414 - - 1,236,785 35,019,199
Source of supply - electric 4,495,494 - - - 4,495,494
Total capital assets, being depreciated 94,794,401 - - 1,236,785 96,031,186 Less accumulated depreciation:

Buildings and improvements (41,444,252) (421,692) - - (41,865,944) Equipment, furniture and fixtures (1,317,792) (13,642) - - (1,331,434) Infrastructure (4,657,242) (2,060,868) - - (6,718,110)
Source of supply - electric (2,230,676) (80,628) - - (2,311,304) Total accumulated depreciation (49,649,962) (2,576,830) - - (52,226,792) Total capital assets, being
depreciated, net 45,144,439 (2,576,830) - 1,236,785 43,804,394 Total Business-type Activities 66,902,691 $ 296,136 $ (2,124,728) $ - $ 65,074,099 $ Depreciation expense for business activities in the amount of $2,576,830 were charged to the following activities:

Water 781,233 $
Electric 1,090,904
CRIA Expo Center 556,260
IPHMA 148,433
Total Depreciation Expense 2,576,830 $
C) Private-Purpose Trust Fund
The SA to IUDA has the following assets held for sale or disposition.

Balance at Balance at
July 1, 2024 Transfer Additions Deletions June 30, 2025 Property held for sale or disposition:

Land 50,064,421 $ - $ - $ - $ 50,064,421 $

City of Industry
Notes to Financial Statements
June 30, 2025
-58-
9) CAPITAL ASSETS (Continued)
C) Private-Purpose Trust Fund (Continued)
In addition, the SA to IUDA has the following capital assets as of June 30, 2025:

Balance at Balance at
July 1, 2024 Transfer Additions Deletions June 30, 2025 Capital assets, being depreciated:

Construction in progress 197,302,255 $ - $ 8,266,079 $ - $ 205,568,334 $ Infrastructure 166,310 - - - 166,310
Less accumulated depreciation: (4,797) - - - (4,797)
Capital Assets, Net 197,463,768 $ - $ 8,266,079 $ - $ 205,729,847 $ 10) UNEARNED REVENUE
Reclaimed Water Sales
The City purchases 10,000-acre feet of reclaimed water from LA County Sanitation District annually. The City also entered into separate joint use and development agreements with the Rowland Water District (RWD) and the Upper San Gabriel Valley Water District (SGVWD). The purpose of the agreements is to sell 3,400- and 2,500-acre feet of reclaimed water to RWD and SGVWD, respectively. Under the agreements, RWD and SGVWD had the option to pay their allocated shares of cost in advance or over 20 years. On July 15, 2009, RWD paid its allocated share of cost in advance in the amount of $5,958,516. Subsequently, SGVWD also paid its allocable share of cost in advance in the amount of $4,280,345 on November 10, 2012. Both advances are to be amortized and recognized as revenue over 20 years. As of June 30, 2025, total unearned revenue from the sale of reclaimed water to RWD and SGVWD was in the amount of $2,689,824.

Civic-Recreational-Industrial Authority
Unearned revenue for CRIA are for event rental fees collected prior to the event. As of June 30, 2025, unearned revenue for CRIA was in the amount of $120,841.

City of Industry
Notes to Financial Statements
June 30, 2025
-59-
11) LONG-TERM LIABILITIES
A summary of changes in the governmental activities long-term liabilities for the year ended June 30, 2025, is as follows:

Amount Due
Balance at Balance at Amount Due in More
July 1, 2024 Additions Deletions June 30, 2025 in One Year Than One Year Governmental activities:

Bonds payable:

City of Industry:

Sales tax revenue bonds 332,940,000 $ - $ (5,865,000) $ 327,075,000 $ 6,060,000 $ 321,015,000 $ Deferred amounts:

Unamortized premium/discounts (4,826,355) - 279,881 (4,546,474) 279,881 (4,826,355) Total bonds payable 328,113,645 - (5,585,119) 322,528,526 6,339,881 316,188,645 Compensated absences 235,566 492,619 - 728,185 541,881 186,304 Subscription liability - 360,080 (146,886) 213,194 102,114 111,080 Total long-term liabilities 328,349,211 $ 852,699 $ (5,732,005) $ 323,469,905 $ 6,983,876 $ 316,486,029 $ A) City of Industry Sales Tax Revenue Bonds
Balance at Balance at Amount Due
July 1, 2024 Additions Deletions June 30, 2025 in One Year Sales tax revenue bonds:
2015 Sales tax revenue
refunding bonds, Series A 321,795,000 $ - $ (2,270,000) $ 319,525,000 $ 2,345,000 $ 2015 Sales tax revenue
refunding bonds, Series B 47,650,000 - (645,000) 47,005,000 680,000 2017 Sales tax refunding
revenue bonds 11,145,000 - (3,595,000) 7,550,000 3,715,000 Elimination of City bonds
issued to PFA (47,650,000) - 645,000 (47,005,000) (680,000) Total sales tax revenue bonds 332,940,000 $ - $ (5,865,000) $ 327,075,000 $ 6,060,000 $ 2015 Taxable Sales Tax Revenue Refunding Bonds, Series A On December 3, 2015, the City issued $336,570,000 Senior Sales Tax Revenue Refunding Bonds, Series A (Taxable) to: (1) refund its 2005 and 2008 Sales Tax Revenue Bonds, (2) to finance certain improvements and expenditures of the City, (3) purchase a surety for the reserve fund for the bonds, (4) purchase a municipal bond insurance policy for the bonds, and (5) pay certain costs of issuance of the bonds. The 2005 Taxable Sales Tax Revenues Bonds and 2008 Taxable Sales Tax Revenue Bonds were fully redeemed on December 13, 2015.

City of Industry
Notes to Financial Statements
June 30, 2025
-60-
11) LONG-TERM LIABILITIES (Continued)
A) City of Industry Sales Tax Revenue Bonds (Continued) Principal ranges from $2,200,000 to $21,875,000 maturing annually through January 1, 2051.

The bonds bear interest at rates ranging from 3.250% to 5.125%, due semiannually on January 1 and July 1. Debt service requirement to maturity is as follows:

Year Ending
June 30, Principal Interest Total
2026 2,345,000 $ 15,910,962 $ 18,255,962 $
2027 2,435,000 15,825,956 18,260,956
2028 7,270,000 15,728,556 22,998,556
2029 7,560,000 15,437,756 22,997,756
2030 7,870,000 15,125,906 22,995,906
2031 to 2035 45,010,000 69,982,202 114,992,202
2036 to 2040 57,260,000 57,726,976 114,986,976
2041 to 2045 73,515,000 41,471,244 114,986,244
2046 to 2050 94,385,000 20,600,194 114,985,194
2051 21,875,000 1,121,094 22,996,094
Total 319,525,000 $ 268,930,846 $ 588,455,846 $
2015 Taxable Sales Tax Revenue Refunding Bonds, Series B On December 3, 2015, the City issued $51,460,000 Subordinate Sales Tax Revenue Bonds, Series 2015B (Taxable) to finance working capital expenditures and/or project costs. Principal ranges from $615,000 to $3,905,000 maturing annually through February 1, 2051. The bonds bear interest at rates ranging from 5.000% to 7.750%, due semiannually on February 1 and August 1.

Debt service requirement to maturity is as follows:

Year Ending
June 30, Principal Interest Total
2026 680,000 $ 3,527,896 $ 4,207,896 $
2027 715,000 3,490,156 4,205,156
2028 755,000 3,448,330 4,203,330
2029 805,000 3,401,898 4,206,898
2030 860,000 3,349,976 4,209,976
2031 to 2035 5,275,000 15,756,461 21,031,461
2036 to 2040 7,505,000 13,526,700 21,031,700
2041 to 2045 10,810,000 10,227,686 21,037,686
2046 to 2050 15,695,000 5,344,022 21,039,022
2051 3,905,000 302,642 4,207,642
Total 47,005,000 $ 62,375,767 $ 109,380,767 $

City of Industry
Notes to Financial Statements
June 30, 2025
-61-
11) LONG-TERM LIABILITIES (Continued)
A) City of Industry Sales Tax Revenue Bonds (Continued) 2017 Senior Taxable Sales Tax Revenue Refunding Bonds
On April 11, 2017, the City issued $34,340,000 Senior Sales Tax Revenue Refunding Bonds (Taxable) to: (1) defease its 2010 Sales Tax Revenue Bonds, (2) purchase a surety for the reserve fund for the bonds, (3) purchase a municipal bond insurance policy for the bonds, and (4) pay certain costs of issuance of the bonds.
2017 Senior Taxable Sales Tax Revenue Refunding Bonds
Principal ranges from $3,715,000 to $3,835,000 maturing annually through January 1, 2027.

The bonds bear interest at rates ranging from 2.750% to 3.500%, due semiannually on January 1 and July 1. Debt service requirement to maturity is as follows:

Year Ending
June 30, Principal Interest Total
2026 3,715,000 $ 259,606 $ 3,974,606 $
2027 3,835,000 134,226 3,969,226
Total 7,550,000 $ 393,832 $ 7,943,832 $
Revenue Pledged
The sales tax revenue bonds are secured by sales tax revenues received by the City until the bonds are paid off in fiscal year 2051. Principal and interest payments outstanding as of June 30, 2025 on the bonds amounted to $705,780,445. Annual principal and interest payments on the sales tax revenue bonds are expected to require 68% of the sales tax revenues. For the year ended June 30, 2025, total sales tax revenues received to pay for these bonds amounted to $35,979,850. Principal and interest paid on the bonds during the year ended June 30, 2025, amounted to $26,438,616.

B) Compensated Absences
As of June 30, 2025 compensated absences totaled to $728,185, which will be liquidated by the General Fund.

City of Industry
Notes to Financial Statements
June 30, 2025
-62-
11) LONG-TERM LIABILITIES (Continued)
C) Subscription Liability
As of June 30, 2025, the City had 2 active subscriptions. The subscriptions have payments that range from $49,214 to $111,080 and interest rates that range from 3.37% to 3.78%. As of June 30, 2025, the subscription liability is $213,194 with a value of the right to use asset of $450,116 with accumulated amortization of $127,797.

Estimated future subscription liability requirements are as follows:

Year Ending
June 30, Principal Interest Total
2026 102,114 $ 6,722 $ 108,836 $
2027 111,080 3,177 114,257
Total 213,194 $ 9,899 $ 223,093 $
12) DEFINED BENEFIT PENSION PLAN
A) General Information About the Pension Plan
Plan Description
The City contributes to CalPERS, a cost-sharing multiple-employer defined benefit pension plan, for its miscellaneous employees. 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 CalPERS’s annual financial report may be obtained from its executive office at 400 P Street, Sacramento, California 95814.

Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries.

Benefits are based on years of credited service, equal to one year of full-time employment.

Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 5 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost-of-living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.

City of Industry
Notes to Financial Statements
June 30, 2025
-63-
12) DEFINED BENEFIT PENSION PLAN (Continued)
A) General Information About the Pension Plan (Continued) The Plans’ provisions and benefits in effect as of June 30, 2025 are summarized as follows:

Classic Classic
Tier 1 Tier 2 PEPRA
Benefit formula 2% @ 55 2% @ 60 2% @ 62
Benefit vesting schedule 5 years of 5 years of 5 years of service service service
Benefit payments Monthly for life Monthly for life Monthly for life Retirement age 50 to 63 50 to 63 52 to 67
Monthly benefits, as a
percentage of eligible
compensation 1.426% to 2.418% 1.426% to 2.418% 1.000 to 2.500% Required employee
contribution rates 8.00% 7.00% 8.25%
Required employer
contribution rates:

Normal cost rate 17.62% 11.94% 8.63%
Contributions
Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process.

The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions. Employer contributions to the Plan for the fiscal year ended June 30, 2025 were $502,190.

B) Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions
Net Pension Liability
The City’s net pension liability for the Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of the Plan is measured as of June 30, 2024, using an annual actuarial valuation as of June 30, 2023 rolled forward to June 30, 2024 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is as follows.

City of Industry
Notes to Financial Statements
June 30, 2025
-64-
12) DEFINED BENEFIT PENSION PLAN (Continued)
B) Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued) Actuarial Methods and Assumptions Used to Determine Total Pension Liability The collective total pension liability for the June 30, 2024 measurement period was determined by an actuarial valuation as of June 30, 2023, with update procedures used to roll forward the total pension liability to June 30, 2024. The collective total pension liability was based on the following assumptions:

Miscellaneous
Valuation date June 30, 2023
Measurement date June 30, 2024
Actuarial cost method Entry-age actuarial cost method
Asset valuation method Fair value of assets
Actuarial assumptions:

Discount rate 6.90%
Inflation 2.30%
Salary increases Varies by entry age and service
Mortality rate table Derived using CalPERS' membership
data for all funds
Post retirement benefit increase Contract COLA up to 2.30% until purchasing power protection
allowance floor on purchasing power
applies, 2.30% thereafter
(1) The mortality table used was developed based on CalPERS-specific data. The rates incorporate generational mortality to capture ongoing mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the 2021 experience study report from November 2021 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 shortterm and long-term market return expectations. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 Basis points.

City of Industry
Notes to Financial Statements
June 30, 2025
-65-
12) DEFINED BENEFIT PENSION PLAN (Continued)
B) Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued) The expected real rates of return by asset class are as follows:

Assumed
Asset
Asset Class Allocation Real Return 1,2
Global equity - cap-weighted 30.00% 4.54%
Global equity - non-weighted 12.00% 3.84%
Private equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed securities 5.00% 0.50%
Investment grade corporates 10.00% 1.56%
High yield 5.00% 2.27%
Emerging market debt 5.00% 2.48%
Private debt 5.00% 3.57%
Real assets 15.00% 3.21%
Leverage -5.00% -0.59%
Total 100.00%
1 An expected inflation of 2.30% used for this period
2 Figures are based on the 2021-22 Asset Liability Management study Discount Rate
The discount rate used to measure the total pension liability was 6.90%. 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, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

City of Industry
Notes to Financial Statements
June 30, 2025
-66-
12) DEFINED BENEFIT PENSION PLAN (Continued)
B) Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued) Subsequent Events
There were no subsequent events that would materially affect the results presented in this disclosure.

Pension Plan Fiduciary Net Position
Information about the pension plan’s assets, deferred outflows of resources, liabilities, deferred inflows of resources, and fiduciary net position are presented in CalPERS audited financial statements, which are publicly available reports that can be obtained at CalPERS website, at www.calpers.ca.gov. The plan’s fiduciary net position and additions to/deductions from the plan’s fiduciary net position have been determined on the same basis used by the pension plan, which is the economic resources measurement focus and the accrual basis of accounting. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. Investments are reported at fair value.

C) Proportionate Share of Net Pension Liability
The following table shows the City’s proportionate share of the Plan’s net pension liability over the measurement period.

Total Fiduciary Net Pension
Pension Liability Net Position Liability/(Asset)
Measurement date (a) (b) (c) = (a) - (b)
Balance at: 6/30/2023 34,763,885 $ 31,670,282 $ 3,093,603 $ Balance at: 6/30/2024 37,368,876 34,355,302 3,013,574
Net change 2,604,991 $ 2,685,020 $ (80,029) $
Proportionate share of Miscellaneous Plan

City of Industry
Notes to Financial Statements
June 30, 2025
-67-
12) DEFINED BENEFIT PENSION PLAN (Continued)
C) Proportionate Share of Net Pension Liability (Continued) The City’s proportion of the net pension liability was determined by CalPERS using the output from the Actuarial Valuation System and the fiduciary net position, as provided in the CalPERS Public Agency Cost-Sharing Allocation Methodology Report, which is a publicly available report that can be obtained at CalPERS website, at www.calpers.ca.gov. The City’s proportionate share of the net pension liability for the miscellaneous Plan as of the June 30, 2023 and 2024 measurement dates was as follows:

Miscellaneous
Proportion - June 30, 2023 0.06187%
Proportion - June 30, 2024 0.06231%
Change - increase 0.00044%
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate
The following presents the City’s proportionate share of the net pension liability of the Plan as of the measurement date, calculated using the discount rate of 6.9 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (5.9 percent) or 1 percentage-point higher (7.9 percent) than the current rate:

Current
Discount Rate Discount Rate Discount Rate
-1% (5.90%) (6.90%) +1% (7.90%)
Net pension liability/(asset) 8,056,145 $ 3,013,574 $ (1,137,203) $ Amortization of Deferred Outflows and Deferred Inflows of Resources Under GASB 68, 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.

City of Industry
Notes to Financial Statements
June 30, 2025
-68-
12) DEFINED BENEFIT PENSION PLAN (Continued)
C) Proportionate Share of Net Pension Liability (Continued) The amortization period differs depending on the source of the gain or loss:

Net difference between
projected and actual earnings
on pension plan investments
5-year straight-line amortization
All other amounts Straight-line amortization over the expected average remaining service lives (EARSL) of all members that
are provided with benefits (active, inactive and
retired) as of the beginning of the measurement
period
D) Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions
As of the start of the measurement period (July 1, 2023), the City’s net pension liability was $3,093,603. For the measurement period ending June 30, 2024 (the measurement date), the City incurred a pension expense of $1,717,928.

As of June 30, 2025, the City has deferred outflows and deferred inflows of resources related to pensions as follows:

Deferred Deferred
Outflows Inflows
of Resources of Resources
Changes in assumptions 77,455 $ - $
Differences between actual and expected
experience 250,385 -
Net differences between projected and
actual earnings on Plan investments 173,488 -
Change in proportionate share of contributions 1,383,988 Change in employers proportion 1,465,825
Pension contributions subsequent to
measurement date 502,190 -
Total 2,469,343 $ 1,383,988 $

City of Industry
Notes to Financial Statements
June 30, 2025
-69-
12) DEFINED BENEFIT PENSION PLAN (Continued)
D) Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions (Continued)
The amounts above are net of outflows and inflows recognized in the 2023-24 measurement period expense. Contributions subsequent to the measurement date of $502,190 reported with deferred outflows of resources will be recognized as a reduction of the net pension liability in the upcoming fiscal year. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Fiscal Deferred
Year Ending Outflows/(Inflows)
June 30, of Resources
2026 562,266 $
2027 166,089
2028 (85,738)
2029 (59,452)
2030 -
Thereafter -
Total 583,165 $
E) Payable to the Pension Plan
As of June 30, 2025, the City had no outstanding amount of contributions to the pension plan required for the year ended.
13) DEFERRED COMPENSATION PLAN
The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all City employees, permits them to defer a portion of their salary until future years. Participation in the plan is optional. The deferred compensation is not available to employees until termination, retirement, death or an unforeseeable emergency. All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property or rights (until paid or made available to the employees or other beneficiary) are solely the property and rights of the participant and are not subject to the claims of the City’s general creditors.

Investments are managed by the plan’s trustee under one of several investment options, or a combination thereof. The choice of the investment options is made by the participants. Plan assets are held in trust for the exclusive benefit of the participant and their beneficiaries; and therefore, are not included in the accompanying financial statements. As of June 30, 2025, the plan had investments in the amount of $3,030,613.

City of Industry
Notes to Financial Statements
June 30, 2025
-70-
14) OTHER POSTEMPLOYMENT BENEFITS
A) General Information about the OPEB Plan
Plan Description
The City provides other postemployment benefits (OPEB) through the California Employer’s Retiree Benefit Trust Fund (CERBT), an agent multiple-employer defined benefit plan to provide postemployment medical benefits. Specifically, the City offers postretirement medical, dental and vision benefits to all employees who retire from the City. The plan does not provide a publicly available financial report.

Benefits provided by the plan are as follows:

General
Employees Management
Benefit types provided Medical, dental and vision Medical, dental and vision Duration of benefits Lifetime Lifetime
Required services 15 years** 15 years*
Minimum age 50 50
Dependent coverage Yes Yes
City contribution percentage 100.00% 100.00%
City cap None None
* Elected and appointed officials qualify for City-paid coverage after eight or more years. ** 25 years for those hired April 26, 1990 to June 30, 2012; 10 years for those hired prior to April 26, 1990.

Employees Covered by Benefit Term
At the June 30, 2023, valuation date, the following employees were covered by the benefit term:

Active employees 30
Inactive employees receiving benefits 31
Total 61
Contribution
The obligation of the City to contribute to the plan is established and may be amended by the City Council. Employees are not required to contribute to the plan.

B) Net OPEB Liability (Asset)
The City’s net OPEB liability (asset) was measured as of June 30, 2024, and the total OPEB liability used to calculate the net OPEB liability (asset) was determined by an actuarial valuation as of June 30, 2023.

City of Industry
Notes to Financial Statements
June 30, 2025
-71-
14) OTHER POSTEMPLOYMENT BENEFITS (Continued)
B) Net OPEB Liability (Asset) (Continued)
Actuarial Assumptions
Total OPEB liability in the June 30, 2023, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified.

Actuarial cost method Entry age actuarial cost method
Actuarial assumptions:

Inflation 2.50%
Discount rate 6.75%
Healthcare cost trend 4.00%
Payroll increase 2.75%
Mortality rate table 2021 CalPERS mortality for
miscellaneous and school employees
Retirement rate:

Hired before January 1, 2013 2021 CalPERS 2.7% @ 55 rates for miscellaneous employees
Hired before December 31, 2012 2021 CalPERS 2.0% @ 62 rates for miscellaneous employees
Service requirement:

General employees:

Hired before April 26, 1990 100% at 10 years of service Hired April 26, 1990 to June 30, 2012 100% at 25 years of service Hired July 1, 2012 or Later 100% at 15 years of service Elected and appointed officials 100% at 8 years of service Management 100% at 15 years of service
Participation rate:
< 65 non-Medicare participation % at 100%
> 65 Medicare participation % at 100%
Turnover 2021 CalPERS turnover for
miscellaneous employees

City of Industry
Notes to Financial Statements
June 30, 2025
-72-
14) OTHER POSTEMPLOYMENT BENEFITS (Continued)
B) Net OPEB Liability (Asset) (Continued)
Discount Rate
The discount rate of 6.75% was used in the valuation. It was assumed that contributions would be sufficient to fully fund the obligation over a period not to exceed 30 years. The City used historic 27-year real rates of return for each asset class along with the assumed longterm inflation assumption to set the discount rate. The City offset the expected investment return by investment expenses of 25 basis points. The following is the assumed asset allocation and assumed rate of return:

Percentage Assumed
Asset Class of Portfolio Gross Return
All equities 49.00% 7.25%
All fixed income 23.00% 4.25%
Real estate investment trusts 20.00% 7.25%
All commodities 3.00% 7.55%
Treasury Inflation Protection Securities (TIPS) 5.00% 3.00% 100.00%
The City looked at rolling periods of time for all asset classes in combination to appropriately reflect correlation between asset classes. That means that the average returns for any asset class don’t necessarily reflect the averages over time individually, but reflect the return for the asset class for the portfolio average. The City used geometric means.

C) Change in the Net OPEB Liability (Asset)
Increase (Decrease)
Total Plan Fiduciary Net OPEB
OPEB Liability Net Position Liability (Asset)
Balance at June 30, 2023
(measurement date) 9,303,809 $ 11,495,220 $ (2,191,411) $ Changes recognized for
the measurement period:

Service cost 316,670 - 316,670
Interest on total OPEB liability 618,960 1,274,015 (655,055) Experience gains 137,517 - 137,517
Administrative expenses - (3,769) 3,769
Benefit payments (722,251) (722,251) -
Net change during measurement
period 2023 to 2024 350,896 547,995 (197,099)
Balance at June 30, 2024
(measurement date) 9,654,705 $ 12,043,215 $ (2,388,510) $

City of Industry
Notes to Financial Statements
June 30, 2025
-73-
14) OTHER POSTEMPLOYMENT BENEFITS (Continued)
C) Change in the Net OPEB Liability (Asset) (Continued) Sensitivity of the Net OPEB Asset to Changes in the Discount Rate The following presents the net OPEB asset of the City, as well as what the City’s net OPEB asset would be if it were calculated using a discount rate that is one percentage point lower (5.75%) or one percentage point higher (7.75%) than the current discount rate:

Healthcare Cost Current Healthcare Cost
Trend Rate Healthcare Trend Rate
1% lower Trend Rate 1% higher
Net OPEB (asset) (3,498, $ (2,388,510) 170) $ (1,037,397) $ Sensitivity of the Net OPEB Asset to Changes in the Healthcare Cost Trend Rates The following presents the net OPEB liability (asset) of the City, as well as what the City’s net OPEB liability (asset) would be if it were calculated using healthcare cost trend rates that are one percentage point lower or one percentage point higher than the current healthcare cost trend rates:

Healthcare Cost Current Healthcare Cost
Trend Rate Healthcare Trend Rate
1% lower Trend Rate 1% higher
Net OPEB (asset) (3,498, $ (2,388,510) 170) $ (1,037,397) $ D) OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the year ended June 30, 2025, the City recognized OPEB expense in the amount of $348,020. As of June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from following sources:

Deferred Deferred
Outflows Inflows
of Resources of Resources
Differences between actual and expected
experience 445,918 $ - $
Change in assumptions 481,529 -
Net differences between projected and
actual earnings on Plan investments 199,826 -
Total 1,127,273 $ - $

City of Industry
Notes to Financial Statements
June 30, 2025
-74-
14) OTHER POSTEMPLOYMENT BENEFITS (Continued)
D) OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB (Continued)
The amounts reported as deferred outflows and deferred inflows of resources related to OPEB will be recognized in the future OPEB expense as follows:

Deferred
Year Ending Outflows/(Inflows)
June 30, of Resources
2026 400,492 $
2027 716,023
2028 17,701
2029 (21,675)
2030 14,732
Thereafter -
Total 1,127,273 $
15) SELF-INSURANCE PLAN
The City established a Self-insurance Plan (the Plan) to pay for liability claims against the City and its component units. The Plan is administered by an insurance committee which is responsible for approving all claims of $25,000 or less and for making provision to have sufficient funds available to pay approved claims and legal and investigative expenses. The insurance committee has vested this responsibility to the City Manager. Potential liability for claims in excess of $250,000 up to $10,000,000 is covered by excess liability insurance policies. As of June 30, 2025, there are approximately $426,701 in pending liability claims and litigation outstanding against the City and its component units. This balance is included in the accrued liabilities of the general fund in the governmental balance sheet. Based on information presently available, the City believes that there are substantial defenses to such litigation and disputes and that, in any event, the ultimate liability, if any, resulting there from will not have a material effect on the financial position of the City and its component units.

Changes in the liability since June 30, 2023, resulted from the following:

Liability
Liability at June 30, 2023 1,906,396 $
Estimates during the year (555,769)
Claim payments during the year -
Liability at June 30, 2024 1,350,627
Estimates during the year (923,926)
Claim payments during the year -
Liability at June 30, 2025 426,701 $

City of Industry
Notes to Financial Statements
June 30, 2025
-75-
16) COMMITMENTS AND CONTINGENCIES
San Gabriel Valley Water and Power, LLC
On or about May 17, 2016, the City entered into the Lease with SGVWP. The Lease was ratified by the City Council on or about October 12, 2017. Among the Lease’s various provisions, the City provided SGVWP with a $20 million loan (Note 4) for SGVWP to analyze the feasibility of constructing a “solar farm” and other necessary public infrastructure improvements. The Lease potentially included two separate and adjacent properties. Under Section 25.3 of the Lease, repayment on the loan would be triggered “upon commencement of construction of the first project pursuant to the Lease.” In January 2018, SGVWP failed to comply with certain material provisions of the Lease. The City gave SGVWP written notice of its obligations under the Lease and requested immediate compliance. On or about May 23, 2018, under Section 17.2.1 of the Lease, because SGVWP had failed to cure its default, the City informed SGVWP that the lease was null and void and of no further force or effect. During the year ended June 30, 2020, the City filed the lawsuit against SGVWP. At this time, given the termination of the Lease and the litigation, it is unknown whether SGVWP will repay the loan.
17) JOINT GOVERNED ORGANIZATION - TRES HERMANOS CONSERVATION AUTHORITY The Tres Hermanos Ranch (the Ranch) consists of approximately 2,445 acres of largely undeveloped property. Approximately 1,750 acres are within the City of Chino Hills (Chino Hills) and 695 acres are within the City of Diamond Bar (Diamond Bar). The Ranch was acquired by the IUDA in 1978 and owned by SA to IUDA due to the dissolution of the IUDA. On January 19, 1999, Chino Hills and Diamond Bar entered into a certain Joint Exercise of Powers (1999 Agreement) for the purpose to coordinate the overall development and conservation of the Ranch.

The City was made an ex-officio nonvoting member in 1999. As previously discussed in Note 4B, the City entered into a master lease agreement with SGVWP for the development of the solar project located at the Ranch with the plan to purchase the Ranch from SA to IUDA. Litigation was brought against the development of the solar project by Chino Hills and Diamond Bar. The three cities later entered into a settlement agreement dated February 4, 2019, where: (1) Chino Hills and Diamond Bar collectively contribute 10% of the City’s $41,650,000 purchase price for the Ranch from SA to IUDA, (2) preserve the Ranch as environmental, scientific, educational, and recreational resources, and (3) transfer the ownership of the Ranch to a re-constituted Tres Hermanos Conservation Authority (the Authority).

On February 6, 2019, the three cities entered into Amended and Restated Tres Hermanos Conservation Authority Joint Powers Agreement (the Agreement) which superseded the 1999 Agreement in its entirety. The general purpose of the Authority is to coordinate the overall conservation, use and potential improvement of the Ranch through collaboration by its members.

The board consist of seven voting directors where three appointed by the City and two each appointed by Chino Hills and Diamond Bar. Each member city pays an equal one-third share of the cost for the reasonable annual and recurring maintenance of the Ranch. Any costs over the annual maintenance cost will be allocated and invoiced separately to the member cities based on the benefits provided.

City of Industry
Notes to Financial Statements
June 30, 2025
-76-
17) JOINT GOVERNED ORGANIZATION - TRES HERMANOS CONSERVATION AUTHORITY (Continued)
In addition, the City is responsible for a onetime remediation work for the Arnold Reservoir dam.

After the completion of the one-time remediation work, the City will not be responsible for any future repair, maintenance or other work to the Arnold Reservoir dam.

In February 2019, Chino Hills and Diamond Bar collectively contributed $4,165,000, and the City contributed the remaining $37,485,000 toward the purchase of the Ranch for the Authority. The financial statement of the Authority can be obtained at 14000 City Center Drive, Chino Hills, California.
18) TRANSACTIONS WITH RELATED PARTIES
The related party transactions of the City are summarized as follows:

Expenditures
for the
Year Ended
Service Provided by Vendor Related Parties June 30, 2025 Landscaping services City Council Member 2,940,182 $
Amount for the
Other Related Year Ended
Party Transactions Related Parties June 30, 2025
Tenant of the City's (Housing City Council Members,
Authority) properties Commissioners, and
Board Members 81,060 $

City of Industry
Notes to Financial Statements
June 30, 2025
-77-
19) EXCESS OF EXPENDITURES OVER APPROPRIATIONS
During the year ended June 30, 2025, expenditures in excess of appropriations are as follows:

Appropriation Expenditures Variance
General Fund:

Community development 2,852,000 $ 3,418,817 $ (566,817) $ Public works 14,601,500 17,015,999 (2,414,499)
City Debt Service Fund:

General administration 8,200 15,900 (7,700)
Interest and fiscal charges 19,928,800 20,057,464 (128,664) Proposition A Sales Tax
Special Revenue Fund:

Public works 424,000 631,513 (207,513)
20) PRIOR PERIOD RESTATEMENT
During the current year, the City identified an error in the prior year presentation of Construction in Progress (CIP) within the governmental activities. The error related solely to the reporting of the CIP balance in the government-wide financial statements and did not affect the underlying accounting records or the City’s internal capital asset tracking. The City’s trial balance and subsidiary records were correct; however, the amount reported in the prior-year financial statements was understated due to a reporting oversight.

In accordance with GASB Statement No. 100, the City has corrected this error by restating beginning net position for governmental activities as follows:

Governmental Activities
Net position, beginning of year, as previously reported 904,209,339 $ Restatement- correction of an error 13,880,861
Net position, beginning of year, as restated 918,090,200 $

City of Industry
Required Supplementary Information
Schedule of the City’s Proportional Share of the Plan’s Net Pension Liability and Related Ratios (Unaudited)
Last Ten Years
-78-
California Public Employees' Retirement System
(CalPERS) Miscellaneous Classic Plan
Measurement period June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 Reporting period June 30, 2025 June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 Employer's proportion of the collective
net pension liability (asset)1 0.062310% 0.061870% 0.047134% -0.189058% 0.006036% Employer's proportionate share of the collective
net pension liability (asset)1 $ 3,093,603 3,013,574 $ 2,205,521 $ (3,589,831) $ 656,759 $ Plan's covered payroll 3,405,056 $ 3,071,627 $ 2,840,527 $ 2,615,700 $ 2,376,701 $ Employer's proportionate share of the net pension
liability (asset) as a percentage of its
covered payroll 88.50% 100.72% -108.91% -137.24% 27.63% Plan's proportionate share of the fiduciary net
position as a percentage of the Plan's total
pension liability 78.08% 76.21% 76.68% 88.29% 75.10%

City of Industry
Required Supplementary Information
Schedule of the City’s Proportional Share of the Plan’s Net Pension Liability and Related Ratios (Unaudited) (Continued)
Last Ten Years
-79-
California Public Employees' Retirement System
(CalPERS) Miscellaneous Classic Plan
Measurement period June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Reporting period June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 Employer's proportion of the collective
net pension liability (asset)1 0.000381% -0.001493% 0.090690% 0.090886% 0.092292% Employer's proportionate share of the collective
net pension liability (asset)1 $ (143,883) 39,088 $ 8,994,206 $ 7,864,480 $ 6,331,815 $ Plan's covered payroll 1,730,895 $ 1,680,481 $ 2,072,156 $ 1,936,492 $ 1,988,262 $ Employer's proportionate share of the net pension
liability (asset) as a percentage of its
covered payroll 2.26% -8.56% 434.05% 406.12% 318.46%
Plan's proportionate share of the fiduciary net
position as a percentage of the Plan's total
pension liability 75.26% 75.26% 73.31% 74.06% 78.40%

City of Industry
Required Supplementary Information
Schedule of Contributions – Pension (Unaudited)
Last Ten Years
-80-
California Public Employees' Retirement System
(CalPERS) Miscellaneous Classic Plan
Fiscal Year Ended June 30, 2025 June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 Actuarially determined contribution 502,190 $ 355,699 $ 388,075 $ 308,625 $ 291,851 $ Contributions in relation to the actuarially
determined contributions (502,190) (355,699) (388,075) (308,625) (291,851) Contribution Deficiency (Excess) - $ - $ - $ - $ - $
Covered payroll 3,676,515 $ 3,405,056 $ 3,071,627 $ 2,840,527 $ 2,615,700 $ Contributions as a percentage of covered payroll 13.66% 10.45% 12.63% 10.87% 11.16% Notes to Schedule:

Changes in Benefit Terms: There were no changes to benefit terms that applied to all members of the Public Agency Pool. However, individual employers in the Plan may have provided a benefit improvement to their employees such as Golden Handshakes, service purchases, and other prior service costs. Employers that have done so may need to report this information as a separate liability in their financial statement as CalPERS considers such amounts to be separately financed employer-specific liabilities. These employers should consult with their auditors.

Additionally, the figures above do not include any liability impact that occurred after the June 30, 2023, valuation date, unless the liability impact is deemed to be material to the Public Agency Pool.

Change in Assumptions: There were no assumption changes in 2023 or 2024. Effective with the June 30, 2021, valuation date (June 30, 2022, measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. In addition, demographic assumptions and the price inflation assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates June 30, 2017, through June 30, 2021, and 7.65% for measurement dates June 30, 2015, through June 30, 2016.

City of Industry
Required Supplementary Information
Schedule of Contributions – Pension (Unaudited) (Continued) Last Ten Years
-81-
California Public Employees' Retirement System
(CalPERS) Miscellaneous Classic Plan
Fiscal Year Ended June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 Actuarially determined contribution 245,590 $ 195,741 $ 640,586 $ 567,355 $ 534,918 $ Contributions in relation to the actuarially
determined contributions (245,590) (195,741) (9,206,926) (567,355) (534,918) Contribution Deficiency (Excess) - $ - $ (8,566,340) $ - $ - $ Covered payroll 2,376,701 $ 1,730,895 $ 1,680,481 $ 2,072,156 $ 1,936,492 $ Contributions as a percentage of covered payroll 10.33% 11.31% 38.12% 27.38% 27.62%

City of Industry
Required Supplementary Information Schedule of Changes Net Other Postemployment Benefits Liability (Asset) and Related Ratios (Unaudited) Last Ten Years* -82-
Measurement Period Ended
June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 Reporting period June 30, 2025 June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019Total OPEB liability:

Service cost 316,670 $ 300,540 $ 292,496 $ 228,121 $ 222,016 $ 268,372 $ 261,189 $ Interest on total OPEB liability 618,960 572,363 552,005 453,854 438,946 638,477 619,722 Changes in assumptions - 490,295 - 609,924 - - -
Differences between expected and
actual experience 137,517 53,713 46,166 975,729 105,870 (3,185,366) 95,803 Benefit payments (722,251) (714,841) (594,910) (560,106) (550,184) (825,116) (579,992) Actual minus expected benefit payments - - - - - 171,949 (95,803) Net change in Total OPEB Liability 350,896 702,070 295,757 1,707,522 216,648 (2,931,684) 300,919 Total OPEB liability, beginning of year 9,303,809 8,601,739 8,305,982 6,598,460 6,381,812 9,313,496 9,012,577 Total OPEB liability, end of year 9,654,705 9,303,809 8,601,739 8,305,982 6,598,460 6,381,812 9,313,496 OPEB fiduciary net position:

Investment income 1,274,015 764,125 (1,838,972) 3,120,564 401,157 715,105 904,934 Contributions - employers - 84,863 13,631 31,285 - - -
Benefit payments (722,251) (714,841) (594,910) (560,106) (550,184) (825,116) (579,992) Administrative expenses (3,769) (3,328) (3,509) (4,270) (5,586) (2,471) (20,767) Other - - - - - - 2,091
Net change in OPEB fiduciary net position 547,995 130,819 (2,423,760) 2,587,473 (154,613) (112,482) 306,266 Total fiduciary net position, beginning of year 11,495,220 11,364,401 13,788,161 11,200,688 11,355,301 11,467,783 11,161,517 Total fiduciary net position, end of year (a) 12,043,215 11,495,220 11,364,401 13,788,161 11,200,688 11,355,301 11,467,783 Net OPEB asset (2,388,510) $ (2,191,411) $ (2,762,662) $ (5,482,179) $ (4,602,228) $ (4,973,489) $ (2,154,287) $ Plan's fiduciary net position as a percentage of
the total OPEB asset 124.74% 123.55% 132.12% 166.00% 169.75% 177.93% 123.13% Covered-employee payroll 3,405,056 $ 3,071,627 $ 2,840,527 $ 2,615,700 $ 2,376,701 $ 1,730,895 $ 1,680,481 $ Net OPEB asset as a percentage of
covered-employee payroll 70.15% 71.34% 97.26% 209.59% 193.64% 287.34% 128.19% Notes to schedule:

Benefit Changes:

There were no changes in benefits.

Changes in Assumptions:

From fiscal year June 30 2024 to June 30 2025:

There were no changes in assumptions.
*Historical information is presented only for measurement periods for which GASB 75 is applicable. Additional years of information will be presented as they become available.

City of Industry
Required Supplementary Information
Budgetary Comparison Schedule – General Fund (Unaudited) For the Year Ended June 30, 2025
-83-
Variance with
Final Budget
Original Final Actual Positive
Budget Budget Amounts (Negative)

REVENUES
Taxes 50,512,000 $ 48,544,000 $ 52,505,518 $ 3,961,518 $ Intergovernmental 351,000 419,000 374,968 (44,032)
Charges for services 210,000 300,000 315,978 15,978
License and permits 2,414,000 2,414,000 2,337,729 (76,271) Fines, forfeitures, and penalties 354,000 354,000 250,075 (103,925) Use of money and property 25,087,000 30,087,000 37,580,431 7,493,431 Other revenue 2,568,000 2,568,000 5,982,226 3,414,226
Total Revenues 81,496,000 84,686,000 99,346,925 14,660,925

EXPENDITURES
Current:

Legislative 1,048,000 1,055,000 979,962 75,038
General administration 8,984,000 8,468,500 6,830,782 1,637,718 Support services 5,742,000 6,124,000 4,515,992 1,608,008 Community development 2,723,000 2,852,000 3,418,817 (566,817) Community services 12,146,000 12,472,000 11,049,678 1,422,322 Public safety 15,307,000 15,312,000 14,512,798 799,202
Public works 14,406,500 14,601,500 17,015,999 (2,414,499) Capital outlay - - 206,877 (206,877)
Debt service:

Principal retirement - - 146,886 (146,886)
Interest and fiscal charges - - 6,317 (6,317)
Total Expenditures 60,356,500 60,885,000 58,684,108 2,200,892 Excess (Deficiency) of Revenues
Over (Under) Expenditures 21,139,500 23,801,000 40,662,817 16,861,817

OTHER FINANCING USES
Transfers in 12,640,000 22,360,000 60,700,041 38,340,041 Transfers out (39,100,900) (2,557,600) (67,102,398) (64,544,798) Subscription acquisition - - 360,080 360,080
Proceeds from sale of capital assets - - 210,687 210,687 Total Other Financing Uses (26,460,900) 19,802,400 (5,831,590) (25,633,990) Net Change in Fund Balance (5,321,400) 43,603,400 34,831,227 (8,772,173)

FUND BALANCE
Beginning of Year 686,573,410 686,573,410 686,573,410 - End of Year $ 730,176,810 681,252,010 $ 721,404,637 $ (8,772,173) $

City of Industry
Note to Required Supplementary Information
For the Year Ended June 30, 2025
-84-
The City Council adopts an annual budget, submitted by the City Manager prior to June 30. The appropriated budget is prepared by fund, function and department. All annual appropriations lapse at the end of the fiscal year. The City Council has the legal authority to amend the budget at any time during the fiscal year. There were no amendments to the budget during the year. The City Manager has the authority to make adjustments to the operating budget within a fund. Transfers of operating budgets between funds or from appropriated reserve accounts, use of unappropriated fund balances, cancellation of appropriation and all changes in capital improvement project budgets require the approval of the City Council.

The annual budget is prepared on a basis consistent with generally accepted accounting principles and is adopted for all governmental type funds other than the Tax Override Debt Service Fund and the Proposition C-AQMD Grant Special Revenue Fund.

The City maintains budgetary controls to ensure compliance with legal provisions embodied in the appropriated budget approved by the City Council. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) for the operating budget is at the fund level.

Excess Expenditures over Appropriations
Appropriation Expenditures Variance
General Fund:

Community development 2,852,000 $ 3,418,817 $ (566,817) $ Public works 14,601,500 17,015,999 (2,414,499)

City of Industry
Supplementary Information
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual
City Capital Projects Fund – Major Fund
For the Year Ended June 30, 2025
-85-
Variance with
Final Budget
Original Final Actual Positive
Budget Budget Amounts (Negative)

REVENUES
Intergovernmental 672,000 $ 672,000 $ - $ (672,000) $
Use of money and property 5,544,000 5,544,000 4,585,001 (958,999) Other revenue 1,008,000 1,008,000 - (1,008,000)
Total Revenues 7,224,000 7,224,000 4,585,001 (2,638,999)

EXPENDITURES
Current:

Community services 25,000 26,000 390 25,610
Capital outlay 46,565,000 47,129,500 26,379,301 20,750,199 Total Expenditures 46,590,000 47,155,500 26,379,691 20,775,809 Excess (Deficiency) of Revenues
Over (Under) Expenditures (39,366,000) (39,931,500) (21,794,690) 18,136,810

OTHER FINANCING SOURCES (USES)
Transfers in - - 27,145,389 27,145,389
Transfers out (5,450,000) (5,450,000) (30,937,472) (25,487,472) Total Other Financing Sources (Uses) (5,450,000) (5,450,000) (3,792,083) 1,657,917 Net Change in Fund Balance (44,816,000) (45,381,500) (25,586,773) 19,794,727

FUND BALANCE
Beginning of Year 115,401,598 115,401,598 115,401,598 - End of Year $ 70,020,098 70,585,598 $ 89,814,825 $ 19,794,727 $

City of Industry
Supplementary Information
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual
City Debt Service Fund – Major Fund
For the Year Ended June 30, 2025
-86-
Variance with
Final Budget
Original Final Actual Positive
Budget Budget Amounts (Negative)

REVENUES
Use of money and property - $ 2,000,000 $ 2,656,822 $ 656,822 $ Total Revenues - 2,000,000 2,656,822 656,822

EXPENDITURES
Current:

General administration 8,200 8,200 15,900 (7,700)
Debt service:

Principal 6,510,000 6,510,000 6,510,000 -
Interest and fiscal charges 19,928,800 19,928,800 20,057,464 (128,664) Total Expenditures 26,447,000 26,447,000 26,583,364 (136,364) Excess (Deficiency) of Revenues
Over (Under) Expenditures (26,447,000) (24,447,000) (23,926,542) 520,458

OTHER FINANCING SOURCES (USES)
Transfers in 36,968,000 - 38,887,822 38,887,822
Transfers out (12,640,000) (22,360,000) (33,060,000) (10,700,000) Total Other Financing Sources (Uses) 24,328,000 (22,360,000) 5,827,822 28,187,822 Net Change in Fund Balance (2,119,000) (46,807,000) (18,098,720) 28,708,280

FUND BALANCE
Beginning of Year 65,571,556 65,571,556 65,571,556 -
End of Year $ 18,764,556 63,452,556 $ 47,472,836 $ 28,708,280 $

City of Industry
Supplementary Information
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual
Industry Public Facilities Authority Debt Service Fund – Major Fund For the Year Ended June 30, 2025
-87-
Variance with
Final Budget
Original Final Actual Positive
Budget Budget Amounts (Negative)

REVENUES
Use of money and property 3,562,000 $ 3,562,000 $ 3,411,352 $ (150,648) $ Total Revenues 3,562,000 3,562,000 3,411,352 (150,648)

EXPENDITURES
Debt service:

Interest and fiscal charges 3,571,200 3,571,200 3,555,533 15,667 Total Expenditures 3,571,200 3,571,200 3,555,533 15,667 Deficiency of Revenues
Under Expenditures (9,200) (9,200) (144,181) (134,981)

OTHER FINANCING SOURCES (USES)
Transfers in 9,200 9,200 7,480 (1,720)
Total Other Financing Sources (Uses) 9,200 9,200 7,480 (1,720) Net Change in Fund Balance - - (136,701) (136,701)

FUND BALANCE (DEFICIT)
Beginning of Year (6,816,687) (6,816,687) (6,816,687) - End of Year $ (6,816,687) (6,816,687) $ (6,953,388) $ (136,701) $

City of Industry
Supplementary Information
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
-88-
Special Revenue Funds
State Gas Tax
Measure R
Local Return
Proposition A -
Sales Tax
Proposition C -
Sales Tax
Proposition C -
AQMD Grants
ASSETS
Cash - $ - $ 29,728 $ 10,596 $ - $
Investments - - 1,542,530 - -
Accounts receivable, net 9,398 - - - 471
Accrued interest - - 17,992 - -
Due from funds - - - - -
Total Assets 9,398 $ - $ 1,590,250 $ 10,596 $ 471 $

LIABILITIES AND FUND BALANCES

LIABILITIES
Accounts payable - $ - $ 66,324 $ - $ - $
Due to other funds - - 135,852 1,687 -
Total Liabilities - - 202,176 1,687 -

FUND BALANCES (DEFICIT)
Restricted for transportation and roads 9,398 - 1,388,074 8,909 471 Unassigned - - - - -
Total Fund Balances 9,398 - 1,388,074 8,909 471
Total Liabilities and Fund Balances 9,398 $ - $ 1,590,250 $ 10,596 $ 471 $ (continued)

City of Industry
Supplementary Information
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
-89-
Special Revenue Funds
Capital
Projects Fund
Debt Service
Fund
Measure M Measure W CARB Grant
Authority
Capital
Projects Fund
Tax Override
Fund Total
ASSETS
Cash - $ 100,737 $ 297,141 $ 280,035 $ 2,161 $ 720,398 $ Investments - 2,180,242 764,211 92,659 - 4,579,642
Accounts receivable, net - 1,626,979 - - - 1,636,848
Accrued interest - 22,203 7,105 1,015 - 48,315
Due from funds - 1,033,236 - - - 1,033,236
Total Assets - $ 4,963,397 $ 1,068,457 $ 373,709 $ 2,161 $ 8,018,439 $

LIABILITIES AND FUND BALANCES

LIABILITIES
Accounts payable - $ 79,105 $ 34,998 $ 375,093 $ - $ 555,520 $ Due to other funds - 43,670 - - - 181,209
Total Liabilities - 122,775 34,998 375,093 - 736,729

FUND BALANCES (DEFICIT)
Restricted for transportation and roads - 4,840,622 1,033,459 - 2,161 7,283,094 Unassigned - - - (1,384) - (1,384)
Total Fund Balances - 4,840,622 1,033,459 (1,384) 2,161 7,281,710 Total Liabilities and Fund Balances - $ 4,963,397 $ 1,068,457 $ 373,709 $ 2,161 $ 8,018,439 $ (concluded)

City of Industry
Supplementary Information
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the Year Ended June 30, 2025
-90-
Special Revenue Funds
State Gas
Tax
Measure R
Local Return
Proposition A -
Sales Tax
Proposition C -
Sales Tax
Proposition C -
AQMD Grants

REVENUES
Taxes - $ 6,969 $ - $ - $ - $
Intergovernmental 28,782 - 11,204 9,293 -
Use of money and property - - 84,827 - -
Other - - - - -
Total Revenues 28,782 6,969 96,031 9,293 -

EXPENDITURES
Current:

Public works 26,614 6,969 631,513 9,293 -
Total Expenditures 26,614 6,969 631,513 9,293 -
Excess (Deficiency) of Revenues
Over (Under) Expenditures 2,168 - (535,482) - -

OTHER FINANCING SOURCES (USES)
Transfers in - - 352,148 - -
Transfers out - - (488,000) - -
Total Other Financing Sources (Uses) - - (135,852) - -
Net Change in Fund Balances 2,168 - (671,334) - -

FUND BALANCES (DEFICIT)
Beginning of year 7,230 - 2,059,408 8,909 471
End of year $ - 9,398 $ 1,388,074 $ 8,909 $ 471 $
(continued)

City of Industry
Supplementary Information
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the Year Ended June 30, 2025
-91-
Capital Projects
Fund
Debt Service
Fund
Measure M Measure W CARB Grant
Authority
Capital Projects
Fund
Tax Override
Fund Total

REVENUES
Taxes - $ - $ - $ - $ - $ 6,969 $
Intergovernmental 7,895 1,626,979 354,201 - - 2,038,354 Use of money and property - 96,973 27,315 4,141 - 213,256 Other - - - 4 - 4
Total Revenues 7,895 1,723,952 381,516 4,145 - 2,258,583

EXPENDITURES
Current:

Public works 7,895 212,433 376,670 2,190,163 - 3,461,550 Total Expenditures 7,895 212,433 376,670 2,190,163 - 3,461,550 Excess (Deficiency) of Revenues
Over (Under) Expenditures - 1,511,519 4,846 (2,186,018) - (1,202,967)

OTHER FINANCING SOURCES (USES)
Transfers in - - - 3,884,888 - 4,237,036
Transfers out - - - (1,499,889) - (1,987,889)
Total Other Financing Sources (Uses) - - - 2,384,999 - 2,249,147 Net Change in Fund Balances - 1,511,519 4,846 198,981 - 1,046,180

FUND BALANCES (DEFICIT)
Beginning of year - 3,329,103 1,028,613 (200,365) 2,161 6,235,530 End of year $ 4,840,622 - $ 1,033,459 $ (1,384) $ 2,161 $ 7,281,710 $ (concluded)
Special Revenue Funds

City of Industry
Supplementary Information
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual
State Gas Tax Special Revenue Fund
For the Year Ended June 30, 2025
-92-
Variance with
Final Budget
Original Final Actual Positive
Budget Budget Amounts (Negative)

REVENUES
Intergovernmental 28,000 $ 28,000 $ 28,782 $ 782 $
Total Revenues 28,000 28,000 28,782 782

EXPENDITURES
Current:

Public works 28,000 28,000 26,614 1,386
Total Expenditures 28,000 28,000 26,614 1,386
Excess (Deficiency) of Revenues
Over (Under) Expenditures - - 2,168 2,168

FUND BALANCE
Beginning of Year 7,230 7,230 7,230 -
End of Year $ 7,230 7,230 $ 9,398 $ 2,168 $

City of Industry
Supplementary Information
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual
Measure R Local Return Special Revenue Fund
For the Year Ended June 30, 2025
-93-
Variance with
Final Budget
Original Final Actual Positive
Budget Budget Amounts (Negative)

REVENUES
Taxes 8,000 $ 8,000 $ 6,969 $ (1,031) $
Total Revenues 8,000 8,000 6,969 (1,031)

EXPENDITURES
Current:

Public works 8,000 8,000 6,969 1,031
Total Expenditures 8,000 8,000 6,969 1,031
Excess (Deficiency) of Revenues
Over (Under) Expenditures - - - -

FUND BALANCE
Beginning of Year - - - -
End of Year $ - - $ - $ - $

City of Industry
Supplementary Information
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual
Proposition A Sales Tax Special Revenue Fund
For the Year Ended June 30, 2025
-94-
Variance with
Final Budget
Original Final Actual Positive
Budget Budget Amounts (Negative)

REVENUES
Intergovernmental 13,000 $ 13,000 $ 11,204 $ (1,796) $
Use of money and property 18,000 100,000 84,827 (15,173) Total Revenues 31,000 113,000 96,031 (16,969)

EXPENDITURES
Current:

Public works 369,000 424,000 631,513 (207,513)
Total Expenditures 369,000 424,000 631,513 (207,513)
Excess (Deficiency) of Revenues
Over (Under) Expenditures (338,000) (311,000) (535,482) (224,482)

OTHER FINANCING SOURCES (USES)
Transfers in - - 352,148 352,148
Transfers out - - (488,000) (488,000)
Total Other Financing Sources (Uses) - - (135,852) (135,852) Net Change in Fund Balances (338,000) (311,000) (671,334) (360,334)

FUND BALANCE
Beginning of Year 2,059,408 2,059,408 2,059,408 -
End of Year $ 1,748,408 1,721,408 $ 1,388,074 $ (360,334) $

City of Industry
Supplementary Information
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual
Proposition C Sales Tax Special Revenue Fund
For the Year Ended June 30, 2025
-95-
Variance with
Final Budget
Original Final Actual Positive
Budget Budget Amounts (Negative)

REVENUES
Intergovernmental 11,000 $ 11,000 $ 9,293 $ (1,707) $
Total Revenues 11,000 11,000 9,293 (1,707)

EXPENDITURES
Current:

Public works 11,000 11,000 9,293 1,707
Total Expenditures 11,000 11,000 9,293 1,707
Excess (Deficiency) of Revenues
Over (Under) Expenditures - - - -

FUND BALANCE
Beginning of Year 8,909 8,909 8,909 -
End of Year $ 8,909 8,909 $ 8,909 $ - $

City of Industry
Supplementary Information
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual
Measure M Special Revenue Fund
For the Year Ended June 30, 2025
-96-
Variance with
Final Budget
Original Final Actual Positive
Budget Budget Amounts (Negative)

REVENUES
Intergovernmental 9,000 $ 9,000 $ 7,895 $ (1,105) $
Total Revenues 9,000 9,000 7,895 (1,105)

EXPENDITURES
Current:

Public works 9,000 9,000 7,895 1,105
Total Expenditures 9,000 9,000 7,895 1,105
Excess (Deficiency) of Revenues
Over (Under) Expenditures - - - -

FUND BALANCE
Beginning of Year - - - -
End of Year $ - - $ - $ - $

City of Industry
Supplementary Information
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual
Measure W Special Revenue Fund
For the Year Ended June 30, 2025
-97-
Variance with
Final Budget
Original Final Actual Positive
Budget Budget Amounts (Negative)

REVENUES
Intergovernmental 1,600,000 $ 1,600,000 $ 1,626,979 $ 26,979 $ Use of money and property 55,000 55,000 96,973 41,973
Total Revenues 1,655,000 1,655,000 1,723,952 68,952

EXPENDITURES
Current:

Public works 2,695,000 1,945,000 212,433 1,732,567
Total Expenditures 2,695,000 1,945,000 212,433 1,732,567 Excess (Deficiency) of Revenues
Over (Under) Expenditures (1,040,000) (290,000) 1,511,519 1,801,519

FUND BALANCE
Beginning of Year 3,329,103 3,329,103 3,329,103 -
End of Year $ 3,039,103 2,289,103 $ 4,840,622 $ 1,801,519 $

City of Industry
Supplementary Information
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual
CARB Tax Special Revenue Fund
For the Year Ended June 30, 2025
-98-
Variance with
Final Budget
Original Final Actual Positive
Budget Budget Amounts (Negative)

REVENUES
Intergovernmental 440,000 $ 440,000 $ 354,201 $ (85,799) $ Use of money and property 49,000 49,000 27,315 (21,685) Total Revenues 489,000 489,000 381,516 (107,484)

EXPENDITURES
Current:

Public works 250,000 450,000 376,670 73,330
Total Expenditures 250,000 450,000 376,670 73,330
Excess (Deficiency) of Revenues
Over (Under) Expenditures 239,000 39,000 4,846 (34,154)

FUND BALANCE
Beginning of Year 1,028,613 1,028,613 1,028,613 -
End of Year $ 1,067,613 1,267,613 $ 1,033,459 $ (34,154) $

City of Industry
Supplementary Information
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual
CRIA Capital Projects Fund
For the Year Ended June 30, 2025
-99-
Variance with
Final Budget
Original Final Actual Positive
Budget Budget Amounts (Negative)

REVENUES
Use of money and property 4,000 $ 4,000 $ 4,141 $ 141 $ Other revenue - - 4 4
Total Revenues 4,000 4,000 4,145 145

EXPENDITURES
Current:

Public works 2,442,000 2,687,896 2,190,163 497,733
Total Expenditures 2,442,000 2,687,896 2,190,163 497,733 Excess (Deficiency) of Revenues
Over (Under) Expenditures (2,438,000) (2,683,896) (2,186,018) 497,878

OTHER FINANCING SOURCES (USES)
Transfers in 6,156,700 6,581,400 3,884,888 (2,696,512)
Transfers out (4,923,300) (5,148,000) (1,499,889) 3,648,111 Total Other Financing Sources (Uses) 1,233,400 1,433,400 2,384,999 951,599 Net Change in Fund Balance (1,204,600) (1,250,496) 198,981 1,449,477

FUND BALANCE (DEFICIT)
Beginning of Year (200,365) (200,365) (200,365) -
End of Year $ (1,450,861) (1,404,965) $ (1,384) $ 1,449,477 $

City of Industry
Supplementary Information
Schedule of Long-Term Debt – City of Industry Only
$336,570,000 Taxable Sales Tax Refunding Bonds, Series 2015A For the Year Ended June 30, 2025
-100-
Interest Debt Annual
Period Ending Principal Rate Interest Service Debt Service July 1, 2025 - $ 3.500% 7,955,481 $ 7,955,481 $ - $
January 1, 2026 2,345,000 3.625% 7,955,481 10,300,481 18,255,962 July 1, 2026 - 3.625% 7,912,978 7,912,978 -
January 1, 2027 2,435,000 4.000% 7,912,978 10,347,978 18,260,956 July 1, 2027 - 4.000% 7,864,278 7,864,278 -
January 1, 2028 7,270,000 4.000% 7,864,278 15,134,278 22,998,556 July 1, 2028 - 4.000% 7,718,878 7,718,878 -
January 1, 2029 7,560,000 4.125% 7,718,878 15,278,878 22,997,756 July 1, 2029 - 4.125% 7,562,953 7,562,953 -
January 1, 2030 7,870,000 4.250% 7,562,953 15,432,953 22,995,906 July 1, 2030 - 4.250% 7,395,716 7,395,716 -
January 1, 2031 8,205,000 4.625% 7,395,716 15,600,716 22,996,432 January 1, 2021 - 4.625% 7,205,975 7,205,975 -
January 1, 2032 8,585,000 4.625% 7,205,975 15,790,975 22,996,950 July 1, 2032 - 4.625% 7,007,447 7,007,447 -
January 1, 2033 8,985,000 4.625% 7,007,447 15,992,447 22,999,894 July 1, 2033 - 4.625% 6,799,669 6,799,669 -
January 1, 2034 9,400,000 4.625% 6,799,669 16,199,669 22,999,338 July 1, 2034 - 4.625% 6,582,294 6,582,294 -
January 1, 2035 9,835,000 5.125% 6,582,294 16,417,294 22,999,588 July 1, 2035 - 5.125% 6,330,272 6,330,272 -
January 1, 2036 10,335,000 5.125% 6,330,272 16,665,272 22,995,544 July 1, 2036 - 5.125% 6,065,438 6,065,438 -
January 1, 2037 10,865,000 5.125% 6,065,438 16,930,438 22,995,876 July 1, 2037 - 5.125% 5,787,022 5,787,022 -
January 1, 2038 11,425,000 5.125% 5,787,022 17,212,022 22,999,044 July 1, 2038 - 5.125% 5,494,256 5,494,256 -
January 1, 2039 12,010,000 5.125% 5,494,256 17,504,256 22,998,512 July 1, 2039 - 5.125% 5,186,500 5,186,500 -
January 1, 2040 12,625,000 5.125% 5,186,500 17,811,500 22,998,000 July 1, 2040 - 5.125% 4,862,984 4,862,984 -
January 1, 2041 13,270,000 5.125% 4,862,984 18,132,984 22,995,968 July 1, 2041 - 5.125% 4,522,941 4,522,941 -
January 1, 2042 13,950,000 5.125% 4,522,941 18,472,941 22,995,882 July 1, 2042 - 5.125% 4,165,472 4,165,472 -
January 1, 2043 14,665,000 5.125% 4,165,472 18,830,472 22,995,944 July 1, 2043 - 5.125% 3,789,681 3,789,681 -
January 1, 2044 15,420,000 5.125% 3,789,681 19,209,681 22,999,362 July 1, 2044 - 5.125% 3,394,544 3,394,544 -
January 1, 2045 16,210,000 5.125% 3,394,544 19,604,544 22,999,088 July 1, 2045 - 5.125% 2,979,163 2,979,163 -
January 1, 2046 17,040,000 5.125% 2,979,163 20,019,163 22,998,326 July 1, 2046 - 5.125% 2,542,513 2,542,513 -
January 1, 2047 17,910,000 5.125% 2,542,513 20,452,513 22,995,026 July 1, 2047 - 5.125% 2,083,568 2,083,569 -
January 1, 2048 18,830,000 5.125% 2,083,568 20,913,569 22,997,138 July 1, 2048 - 5.125% 1,601,050 1,601,050 -
January 1, 2049 19,795,000 5.125% 1,601,050 21,396,050 22,997,100 July 1, 2049 - 5.125% 1,093,803 1,093,803 -
January 1, 2050 20,810,000 5.125% 1,093,803 21,903,803 22,997,606 July 1, 2050 - 5.125% 560,547 560,547 -
January 1, 2051 21,875,000 5.125% 560,547 22,435,547 22,996,094 $ 268,930,846 319,525,000 $ 588,455,848 $ 588,455,848 $

City of Industry
Supplementary Information
Schedule of Long-Term Debt – City of Industry Only
$51,460,000 Taxable Sales Tax Refunding Bonds, Series 2015 B For the Year Ended June 30, 2025
-101-
Interest Debt Annual
Period Ending Principal Rate Interest Service Debt Service August 1, 2025 - $ 5.550% 1,763,948 $ 1,763,948 $ - $
February 1, 2026 680,000 5.550% 1,763,948 2,443,948 4,207,896 August 1, 2026 - 5.850% 1,745,078 1,745,078 -
February 1, 2027 715,000 5.850% 1,745,078 2,460,078 4,205,156 August 1, 2027 - 6.150% 1,724,165 1,724,165 -
February 1, 2028 755,000 6.150% 1,724,165 2,479,165 4,203,330 August 1, 2028 - 6.450% 1,700,949 1,700,949 -
February 1, 2029 805,000 6.450% 1,700,949 2,505,949 4,206,898 August 1, 2029 - 6.750% 1,674,988 1,674,988 -
February 1, 2030 860,000 6.750% 1,674,988 2,534,988 4,209,976 August 1, 2030 - 7.000% 1,645,962 1,645,962 -
February 1, 2031 915,000 7.000% 1,645,962 2,560,962 4,206,924 February 1, 2021 - 7.250% 1,613,937 1,613,937 -
February 1, 2032 980,000 7.250% 1,613,938 2,593,938 4,207,875 August 1, 2032 - 7.250% 1,578,412 1,578,412 -
February 1, 2033 1,050,000 7.250% 1,578,412 2,628,412 4,206,824 August 1, 2033 - 7.250% 1,540,350 1,540,350 -
February 1, 2034 1,125,000 7.250% 1,540,350 2,665,350 4,205,700 August 1, 2034 - 7.250% 1,499,569 1,499,569 -
February 1, 2035 1,205,000 7.250% 1,499,569 2,704,569 4,204,138 August 1, 2035 - 7.250% 1,455,887 1,455,887 -
February 1, 2036 1,295,000 7.250% 1,455,887 2,750,887 4,206,774 August 1, 2036 - 7.500% 1,408,943 1,408,943 -
February 1, 2037 1,390,000 7.500% 1,408,943 2,798,943 4,207,886 August 1, 2037 - 7.500% 1,356,819 1,356,819 -
February 1, 2038 1,490,000 7.500% 1,356,819 2,846,819 4,203,638 August 1, 2038 - 7.500% 1,300,945 1,300,945 -
February 1, 2039 1,605,000 7.500% 1,300,945 2,905,945 4,206,890 August 1, 2039 - 7.500% 1,240,756 1,240,756 -
February 1, 2040 1,725,000 7.500% 1,240,756 2,965,756 4,206,512 August 1, 2040 - 7.500% 1,176,068 1,176,068 -
February 1, 2041 1,855,000 7.500% 1,176,068 3,031,068 4,207,136 August 1, 2041 - 7.750% 1,106,506 1,106,506 -
February 1, 2042 1,995,000 7.750% 1,106,506 3,101,506 4,208,012 August 1, 2042 - 7.750% 1,029,200 1,029,200 -
February 1, 2043 2,150,000 7.750% 1,029,200 3,179,200 4,208,400 August 1, 2043 - 7.750% 945,888 945,888 -
February 1, 2044 2,315,000 7.750% 945,888 3,260,888 4,206,776 August 1, 2044 - 7.750% 856,181 856,181 -
February 1, 2045 2,495,000 7.750% 856,181 3,351,181 4,207,362 August 1, 2045 - 7.750% 759,500 759,500 -
February 1, 2046 2,685,000 7.750% 759,500 3,444,500 4,204,000 August 1, 2046 - 7.750% 655,457 655,457 -
February 1, 2047 2,900,000 7.750% 655,457 3,555,457 4,210,914 August 1, 2047 - 7.750% 543,082 543,082 -
February 1, 2048 3,120,000 7.750% 543,082 3,663,082 4,206,164 August 1, 2048 - 7.750% 422,183 422,183 -
February 1, 2049 3,365,000 7.750% 422,183 3,787,183 4,209,366 August 1, 2049 - 7.750% 291,789 291,789 -
February 1, 2050 3,625,000 7.750% 291,789 3,916,789 4,208,578 August 1, 2050 - 7.750% 151,321 151,321 -
February 1, 2051 3,905,000 7.750% 151,321 4,056,321 4,207,642 $ 62,375,767 47,005,000 $ 109,380,767 $ 109,380,767 $

City of Industry
Supplementary Information
Schedule of Long-Term Debt – City of Industry Only
$34,340,000 Taxable Sales Tax Refunding Bonds, Series 2017 For the Year Ended June 30, 2025
-102-
Interest Debt Annual
Period Ending Principal Rate Interest Service Debt Service July 1, 2025 - $ 3.250% 129,803 $ 129,803 $ - $
January 1, 2026 3,715,000 3.375% 129,803 3,844,803 3,974,606 July 1, 2026 - 3.375% 67,113 67,113 -
January 1, 2027 3,835,000 3.500% 67,113 3,902,113 3,969,226 $ 393,832 7,550,000 $ 7,943,832 $ 7,943,832 $

Tel. 909-889-0871 | www.ramscpa.net | 735 E. Carnegie Dr. Suite 100, San Bernardino, CA 92408

CERTIFIED PUBLIC ACCOUNTANTS
-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
Independent Auditor’s Report
To the Honorable City Council
City of Industry, 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 (Government Auditing Standards), the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Industry (the entity), as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the entity’s basic financial statements, and have issued our report thereon dated January 13, 2026.

Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the entity’s internal control over financial reporting (internal control) as a basis for designing procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we do not express an opinion on the effectiveness of the entity’s internal control.

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 of the entity’s financial statements will 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 or significant deficiencies may exist that were not identified.

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Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the entity’s financial statements are free from material 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 financial statements. 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 the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

San Bernardino, California
January 13, 2026

Tel. 909-889-0871 | www.ramscpa.net | 735 E. Carnegie Dr. Suite 100, San Bernardino, CA 92408

CERTIFIED PUBLIC ACCOUNTANTS
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January 13, 2026
To the Honorable City Council
City of Industry, California
We have audited the financial statements of the City of Industry (the entity) as of and for the year ended June 30, 2025, and have issued our report thereon dated January 13, 2026. Professional standards require that we advise you of the following matters relating to our audit.

Our Responsibility in Relation to the Financial Statement Audit As communicated in our engagement letter dated April 9, 2025, our responsibility, as described by professional standards, is to form and express opinions about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your respective responsibilities.

Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of the system of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control over financial reporting. Accordingly, as part of our audit, we considered the system of internal control of the entity solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control.

We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process.

However, we are not required to design procedures for the purpose of identifying other matters to communicate to you.

Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously communicated to you.

Compliance with All Ethics Requirements Regarding Independence The engagement team, others in our firm, as appropriate, and our firm have complied with all relevant ethical requirements regarding independence.

We have evaluated whether certain nonattest services performed by our firm during the audit have created a significant threat to our independence in relation to the entity. We have identified a threat to our independence (preparation of the entity’s financial statements, creating a self-review threat) that if not reduced to an acceptable level, would impair our independence. In order to reduce the threat to an acceptable level, we have applied the following safeguard:

Prior to the issuance of the entity’s financial statements, another partner or manager, independent of the engagement, will review the financial statements.

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Significant Risks Identified
We have identified the possibility of the following significant risks:

Management's override of internal controls over financial reporting – Management override of internal controls is the intervention by management in handling financial information and making decisions contrary to internal control policy.

Revenue recognition – Revenue recognition is a generally accepted accounting principle that refers to the conditions under which an entity can recognize a transaction as revenue. Auditing standards indicate that recognizing revenue is a presumed fraud risk and usually classified as a significant risk in most audits.

These significant risks are presumptive in most audits and merit attention by the auditors due to the direct impact over financial reporting and internal control processes. Although identified as significant risks, we noted no matters of management override of controls or deviations from generally accepted accounting principles which caused us to modify our audit procedures or any related matters which are required to be communicated to those charged with governance due to these identified risks.

Qualitative Aspects of the Entity’s Significant Accounting Practices Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the entity is included in Note 1 to the financial statements. The City adopted GASB Statement No. 101, Compensated Absence, and GASB Statement No. 102, Certain Risk Disclosures during 2025. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus.

Significant Accounting Estimates and Related Disclosures Accounting estimates and related disclosures are an integral part of the financial statements prepared by management and are based on management’s current judgments. Those judgments are normally based on 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 markedly from management’s current judgments.

The most sensitive accounting estimates affecting the entity’s financial statements are:

Management’s estimate of the net pension liability and related deferred inflows and outflows of resources are based on actuarial reports by independent actuaries. We evaluated the key factors and assumptions used to develop the estimate in determining that it is reasonable in relation to the basic financial statements taken as a whole and in relation to the applicable opinion units.

Management’s estimate of the liability for other post-employment benefits (OPEB) and related deferred inflows and outflows of resources are based on actuarial reports provided by independent actuaries. We evaluated the key factors and assumptions used to develop the estimate in determining that it is reasonable in relation to the basic financial statements taken as a whole and in relation to the applicable opinion units.

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Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users.

The most sensitive disclosures affecting the entity’s financial statements relate to:

The disclosure of net pension liability and related deferred inflows and outflows of resources in the basic financial statements is based on actuarial assumptions. Actual future liabilities and actuarial deferred inflows and outflows may vary from disclosed estimates.

The disclosures of the other post-employment benefits (OPEB) liability and related deferred inflows and outflows of resources in the basic financial statements is based on actuarial assumptions.

Actual future liabilities and actuarial deferred inflows and outflows may vary from disclosed estimates.

Significant Difficulties Encountered during the Audit
We encountered no significant difficulties in dealing with management relating to the performance of the audit.

Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole and each applicable opinion unit. There were no uncorrected misstatements noted.

In addition, professional standards require us to communicate to you all material, corrected misstatements that were brought to the attention of management as a result of our audit procedures. Attachment A reflects all material misstatements that we identified as a result of our audit procedures that were brought to the attention of, and corrected by, management”.

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

Representations Requested from Management
We have requested certain written representations from management, which are included in the attached letter dated January 13, 2026.

Management’s Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that they utilize the services of the City’s internal auditor, Frazier, for consultations regarding auditing and accounting matters.

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Other Significant Matters, Findings, or Issues
In the normal course of our professional association with the entity, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, significant events or transactions that occurred during the year, operating and regulatory conditions affecting the entity, and operational plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as the entity’s auditors.

Our responsibility also includes communicating to you any information which we believe is a material misstatement of fact. Nothing came to our attention that caused us to believe that such information, or its manner of presentation, is materially inconsistent with the information, or manner of its presentation, appearing in the financial statements.

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

Very truly yours,

Attachment A
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100-985-9799.01 Prop A Fund 360,080.00
R100-2543.01 Principal payment 146,886.00
R100-2543.02 Interest expense 6,317.00
100-985-9799.01 Prop A Fund 146,886.00
100-985-9799.01 Prop A Fund 6,317.00
R100-2543 SBITA acquisition 360,080.00
Total 513,283.00 513,283.00
Adjusting Journal Entries JE # 101
To properly record acquisition of lease liability for SBITA.

15625 Mayor Dave Way. z City of Industry, CA 91744-0366 z (626) 333-2211 z FAX (626) 961-6795

CITY OF INDUSTRY
January 13, 2026
Rogers, Anderson, Malody & Scott, LLP
This representation letter is provided in connection with your audit of the financial statements of the City of Industry (the entity) which compromise the statement of financial position as of June 30, 2025, and the respective change in financial position and, where applicable, cash flows for the year then ended, and the related notes to the financial statements, for the purpose of expressing opinions on whether the financial statements of the various opinion units are presented fairly, in all material respects, in accordance with accounting principles generally accepted for governments in the United States of America (U.S. GAAP).

Certain representations in this letter are described as being limited to matters that are material. Items are considered material, regardless of size, if they involve an omission or misstatement of accounting information such that, in the light of surrounding circumstances, there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

We confirm that, to the best of our knowledge and belief, having made such inquiries as we considered necessary for the purpose of appropriately informing ourselves as of January 13, 2026:

Financial Statements
x We have fulfilled our responsibilities, as set out in the terms of the audit engagement letter dated April 9, 2025, for the preparation and fair presentation of the financial statements of the various opinion units referred to above in accordance with U.S. GAAP. x The financial statements refer to above have been fairly presented in accordance with U.S. GAAP and include all properly classified funds, required supplementary information, and noted to the basic financial statements.
x We acknowledge our responsibility for the design, implementation, and maintenance of the system 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. x We acknowledge our responsibility for the design, implementation, and maintenance of internal control to prevent and detect fraud.
x The methods, data and significant assumptions used by us in making accounting estimates and their related disclosures, are appropriate to achieve recognition, measurement, or disclosure that is reasonable in the context of U.S. GAAP.
x All related party relationships and transactions have been appropriately accounted for and disclosed in accordance with the requirements of U.S. GAAP. x All events subsequent to the date of the financial statements and for which U.S. GAAP requires adjustment or disclosure have been adjusted or disclosed. x We acknowledge our responsibility for compliance with the laws, regulations, and provisions of contracts and grant agreements.
x The effects of all known actual or possible litigation and claims have been accounted for and disclosed in accordance with U.S. GAAP.
x All component units, as well as joint ventures with an equity interest, if any, are included and other joint ventures and related organizations are properly disclosed. x All funds and activities are properly classified.

Rogers, Anderson, Malody & Scott, LLP
15625 Mayor Dave Way. z City of Industry, CA 91744-0366 z (626) 333-2211 z FAX (626) 961-6795 x All funds that meet the quantitative criteria in GASB Statement No. 34, Basic Financial Statements—and Management's Discussion and Analysis—for State and Local Governments, GASB Statement No. 37, Basic Financial Statements—and Management's Discussion and Analysis—for State and Local Governments: Omnibus as amended, and GASB Statement No. 65, Items Previously Reported as Assets and Liabilities, for presentation as major are identified and presented as such and all other funds that are presented as major are considered important to financial statement users.
x All components of net position, nonspendable fund balance, and restricted, committed, assigned, and unassigned fund balance are properly classified and, if applicable, approved. x Our policy regarding whether to first apply restricted or unrestricted resources when an expense is incurred for purposes for which both restricted and unrestricted net position/fund balance are available is appropriately disclosed and net position/fund balance is properly recognized under the policy.
x All revenues within the statement of activities have been properly classified as program revenues, general revenues, contributions to term or permanent endowments, or contributions to permanent fund principal.
x All expenses have been properly classified in or allocated to functions and programs in the statement of activities, and allocations, if any, have been made on a reasonable basis. x All interfund and intra-entity transactions and balances have been properly classified and reported. x Special items and extraordinary items have been properly classified and reported. x Deposit and investment risks have been properly and fully disclosed. x Capital assets, including infrastructure assets, are properly capitalized, reported, and if applicable, depreciated.
x Nonexchange and exchange financial guarantees, either written or oral, under which it is more likely than not that a liability exists have been properly recorded, or if we are obligated in any manner, are disclosed
x We have reviewed, approved, and taken responsibility for the financial statements and related notes.
x We have reviewed and approved the various adjusting journal entries that were proposed by you for recording in our books and records and reflected in the financial statements. x We have evaluated all of our lease and subscription agreements and have given you our assessment as to whether each agreement is subject to GASB Statement No. 87, Leases and GASB Statement No. 96, Subscription Based Information Technology Arrangements. x With regard to investments and other instruments reported at fair value:
 The underlying assumptions are reasonable and they appropriately reflect management’s intent and ability to carry out its stated courses of action.  The measurement methods and related assumptions used in determining fair value are appropriate in the circumstances and have been consistently applied.  The disclosures related to fair values are complete, adequate, and in accordance with U.S.

GAAP.
 There are no subsequent events that require adjustments to the fair value measurements and disclosures included in the financial statements.
x With regard to pensions and OPEB:
 We believe that the actuarial assumptions and methods used to measure pension and OPEB liabilities and costs for financial accounting purposes are appropriate in the circumstances.  Increases in benefits, elimination of benefits and all similar amendments have been disclosed in accordance with U.S. GAAP and are included in the most recent actuarial valuation, or disclosed as a subsequent event.
x We have conducted a comprehensive risk assessment and disclosed all material concentrations and constraints in accordance with GASB Statement No. 102, Certain Risk Disclosures. These

Rogers, Anderson, Malody & Scott, LLP
15625 Mayor Dave Way. z City of Industry, CA 91744-0366 z (626) 333-2211 z FAX (626) 961-6795 disclosures provide sufficient detail to enable users of financial statements to understand the nature of the circumstances disclosed and the government’s vulnerability to the risk of a substantial impact associated with the concentration or constraint, if applicable. x We have evaluated the concentrations and constraints, including those that occur subsequent to the statement of net position date but before the financial statements are issued and have been properly disclosed in the financial statements as subsequent events. x With respect to preparation of the financial statements, we have performed the following:
 Made all management decisions and performed all management functions;  Assigned a competent individual to oversee the services;  Evaluated the adequacy of the services performed;
 Evaluated and accepted responsibility for the result of the service performed; and  Established and maintained internal controls, a process to monitor the system of internal controls.
x There have been no changes or updates to legal information disclosed to you by our attorney(s) since the date of such legal response and now.

Information Provided
x We have provided you with:
 Access to all information, of which we are aware that is relevant to the preparation and fair presentation of the financial statements of the various opinion units referred to above, such as records, documentation, meeting minutes, and other matters;  Additional information that you have requested from us for the purpose of the audit; and  Unrestricted access to persons within the entity from whom you determined it necessary to obtain audit evidence.
 A written acknowledgement of all the documents that we expect to issue that will be included in the annual report and the planned timing and method of issuance of that annual report;  A final version of the annual report (including all the documents that, together, comprise the annual report) in a timely manner prior to the date of the auditor’s report. x The financial statements and any other information included in the annual report are consistent with one another, and the other information does not contain any material misstatements. x All information provided in electronic form are true representations of the original documents. x All transactions have been recorded in the accounting records and are reflected in the financial statements.
x We have disclosed to you the results of our assessment of the risk that the financial statements may be materially misstated as a result of fraud.
x We have provided to you our analysis of the entity’s ability to continue as a going concern, including significant conditions and events present, concentrations and constraints, and we believe that our use of the going concern basis of accounting is appropriate. x We have no knowledge of any fraud or suspected fraud that affects the entity and involves:
 Management;
 Employees who have significant roles in internal control; or  Others where the fraud could have a material effect on the financial statements. x We have no knowledge of any instances, that have occurred or are likely to have occurred, of fraud and noncompliance with provisions of laws and regulations that have a material effect on the financial statements or other financial data significant to the audit objectives, and any other instances that warrant the attention of those charged with governance, whether communicated by employees, former employees, vendors (contractors), analysts, regulators, or others.

Rogers, Anderson, Malody & Scott, LLP
15625 Mayor Dave Way. z City of Industry, CA 91744-0366 z (626) 333-2211 z FAX (626) 961-6795 x We have no knowledge of any instances that have occurred or are likely to have occurred, of noncompliance with provisions of contracts and grant agreements that has a material effect on the determination of financial statement amounts or other financial data significant to the audit objectives.
x We have no knowledge of any instances that have occurred or are likely to have occurred of abuse that could be quantitatively or qualitatively material to the financial statements or other financial data significant to the audit objectives.
x We have a process to track the status of audit findings and recommendations. x We have identified for you all previous audits, attestation engagements, and other studies related to the audit objectives and whether related recommendations have been implemented. x We have disclosed to you all known actual or possible litigation, claims, and assessments whose effects should be considered when preparing the financial statements. x We have disclosed to you the identity of all the entity’s related parties and the nature of all the related party relationships and transactions of which we are aware. x There have been no communications from regulatory agencies concerning noncompliance with or deficiencies in accounting, internal control, or financial reporting practices. x The entity has no plans or intentions that may materially affect the carrying value or classification of assets and liabilities.
x For nonexchange financial guarantees where we have declared liabilities, the amount of the liability recognized is the discounted present value of the best estimate of the future outflows expected to be incurred as a result of the guarantee. Where there was no best estimate but a range of estimated future outflows has been established, we have recognized the minimum amount within the range. x We have disclosed to you all significant estimates and material concentrations known to management that are required to be disclosed in accordance with GASB Statement No. 62 (GASB62), Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements. Significant estimates are estimates at the balance sheet date that could change materially within the next year. Concentrations refer to volumes of business, revenues, available sources of supply, or markets or geographic areas for which events could occur that would significantly disrupt normal finances within the next year. x We have identified and disclosed to you the laws, regulations, and provisions of contracts and grant agreements that could have a direct and material effect on financial statement amounts, including legal and contractual provisions for reporting specific activities in separate funds. x We have disclosed to you all nonexchange financial guarantees, under which we are obligated and have declared liabilities and disclosed properly in accordance with GASB Statement No. 70, Accounting and Financial Reporting for Nonexchange Financial Guarantees, for those guarantees where it is more likely than not that the entity will make a payment on any guarantee. x There are no:
 Violations or possible violations of laws or regulations, or provisions of contracts or grant agreements whose effects should be considered for disclosure in the financial statements or as a basis for recording a loss contingency, including applicable budget laws and regulations.  Unasserted claims or assessments that our lawyer has advised are probable of assertion and must be disclosed in accordance with GASB-62.
 Other liabilities or gain or loss contingencies that are required to be accrued or disclosed by GASB-62
 Continuing disclosure consent decree agreements or filings with the Securities and Exchange Commission and we have filed updates on a timely basis in accordance with the agreements (Rule 240, 15c2-12).

Rogers, Anderson, Malody & Scott, LLP
15625 Mayor Dave Way. z City of Industry, CA 91744-0366 z (626) 333-2211 z FAX (626) 961-6795 x The entity has satisfactory title to all owned assets, and there are no liens or encumbrances on such assets nor has any asset or future revenue been pledged as collateral, except as disclosed to you.
x We have complied with all aspects of grant agreements and other contractual agreements that would have a material effect on the financial statements in the event of noncompliance.

Use of a Specialist
x We agree with the findings of specialists in evaluating the entity’s net pension and net other postemployment benefit liabilities and related deferred amounts and have adequately considered the qualifications of the specialist in determining the amounts and disclosures used in the financial statements and underlying accounting records. We did not give or cause any instructions to be given to specialists with respect to the values or amounts derived in an attempt to bias their work, and we are not otherwise aware of any matters that have had an impact on the independence or objectivity of the specialists.

Cybersecurity
x There have been no cybersecurity breaches or other cyber events whose effects should be considered for disclosure in the financial statements, as a basis for recording a loss contingency, or otherwise considered when preparing the financial statements.

Supplementary Information in Relation to the Financial Statements as a Whole With respect to supplementary information accompanying the financial statements:
x We acknowledge our responsibility for the presentation of the supplementary information in accordance with accounting principles generally accepted in the United States of America. x We believe the supplementary information, including its form and content, is fairly presented in accordance with accounting principles generally accepted in the United States of America. x The methods of measurement or presentation have not changed from those used in the prior period.
x We believe any significant assumptions or interpretations underlying the measurement or presentation of the supplementary information, and the basis for our assumptions and interpretations, are reasonable and appropriate in the circumstances. x When the supplementary information is not presented with the audited financial statements, management will make the audited financial statements readily available to the intended users of the supplementary information no later than the date of issuance by the entity of the supplementary information and the auditor’s report thereon.
x We acknowledge our responsibility to include the auditor’s report on the supplementary information in any document containing the supplementary information and that indicates the auditor reported on such supplementary information.
x We acknowledge our responsibility to present the supplementary information with the audited financial statements or, if the supplementary information will not be presented with the audited financial statements, to make the audited financial statements readily available to the intended users of the supplementary information no later than the date of issuance by the entity of the supplementary information and the auditor’s report thereon.

Required Supplementary Information
With respect to the required supplementary information accompanying the financial statements:

Rogers, Anderson, Malody & Scott, LLP
15625 Mayor Dave Way. z City of Industry, CA 91744-0366 z (626) 333-2211 z FAX (626) 961-6795 x We acknowledge our responsibility for the presentation of the required supplementary information in accordance with U.S. GAAP.
x We believe the required supplementary information, including its form and content, is measured and fairly presented in accordance with U.S. GAAP.
x The methods of measurement or presentation have not changed from those used in the prior period.
x We believe the significant assumptions or interpretations underlying the measurement or presentation of the required supplementary information, and the basis for our assumptions and interpretations, are reasonable and appropriate in the circumstances.

Accounting Estimates and Related Disclosures
x The significant judgments made in making the accounting estimates have taken into account all relevant information of which we are aware.
x We have consistently and appropriately selected and applied methods, assumptions, and data when making accounting estimates.
x The assumptions we used in making and disclosing accounting estimates appropriately reflect our intent and ability to carry out specific courses of action on behalf of the entity, when relevant to the accounting estimates and disclosures.
x The disclosures related to accounting estimates, including those disclosures describing estimation uncertainty, are complete and are reasonable in the context of the applicable financial reporting framework.
x We have obtained and applied appropriate specialized skills and expertise in making accounting estimates, if needed.
x We are not aware of any events subsequent to the date of the financial statements that require adjustment to our accounting estimates and related disclosures included in the financial statements.

Signature: Signature:

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Tel. 909-889-0871 | www.ramscpa.net | 735 E. Carnegie Dr. Suite 100, San Bernardino, CA 92408

CERTIFIED PUBLIC ACCOUNTANTS
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Independent Accountant’s Report
To the Honorable City Council
City of Industry, California
We have performed the procedures enumerated below to the accompanying Appropriations Limit Worksheet of the City of Industry, California (the City) for the year ended June 30, 2025.

The management of the City is responsible for the accompanying Appropriations Limit Worksheet.

The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of meeting the requirements of Section 1.5 of Article XIII-B of the California Constitution. These procedures, which were suggested by the League of California Cities and presented in the publication entitled Agreed-upon Procedures Applied to the Appropriations Limitation Prescribed by Article XIII-B of the California Constitution, were performed solely to assist you in meeting the requirements. 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 the associated findings are as follows:

1. We obtained the completed worksheets and compared the limit and annual adjustment factors included in those worksheets to the limit and annual adjustment factors that were adopted by resolution of the City Council. We also compared the population and inflation options included in the aforementioned documents to those that were selected by a recorded vote of the City Council.

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

2. For the accompanying Appropriations Limit Worksheet, we added last year’s limit to total adjustments and agreed the resulting amount to this year’s limit.

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

3. We agreed the current year information presented in the accompanying Appropriations Limit Worksheet to the other documents referenced in number one above.

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

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4. We agreed the prior year appropriations limit presented in the accompanying Appropriations Limit Worksheet to the prior year appropriations limit adopted by the City Council during the prior year.

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

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, the objective of which would be the expression of an opinion or conclusion, respectively, on accompanying Appropriations Limit Worksheet for the year ended June 30, 2025. 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 management of the City of Industry, California, and is not intended to be and should not be used by anyone other than these specified parties. However, this report is a matter of public record and its distribution is not limited.

San Bernardino, California
January 13, 2026

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CITY OF INDUSTRY

APPROPRIATIONS LIMIT WORKSHEET
2024-2025
Change in growth in non-residential assessed valuation 5.88% Change in city population 0.05%
Change in growth in the California per capita personal
income converted to a ratio 1.0588
Change in city population converted to a ratio 1.0005
Calculation of factor for ratio of change (1.0588 x 1.0005) 1.05933 2023-2024 limit 1,086,785,073 $
Adjustment for inflation and population 64,478,306
2024-2025 limit 1,151,263,379 $