Commerce City Council
March 10, 2026

ANNUAL

COMPREHENSIVE

FINANCIAL REPORT
(ACFR)
FY 2024-25
(323) 722-4805
2535 Commerce Way, Commerce, CA 90040
commerceca.gov
(323) 722-4805
2535 Commerce Way, Commerce, CA 90040
commerceca.gov

City of Commerce
Commerce, California
Annual Comprehensive
Financial Report
For the Year Ended June 30, 2025
Prepared by:

Finance Department

City of Commerce
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Table of Contents
Page
INTRODUCTORY SECTION (Unaudited)
Letter of Transmittal ........................................................................................................................................................ i Organization Chart ........................................................................................................................................................ vi Officials of the City of Commerce, California ............................................................................................................. vii

FINANCIAL SECTION
Independent Auditor’s Report on the Audit of the Financial Statements ............................................................... 1 Management’s Discussion and Analysis (Required Supplementary Information) (Unaudited) ........................... 7 Basic Financial Statements:

Government-Wide Financial Statements:

Statement of Net Position ................................................................................................................................ 20 Statement of Activities .................................................................................................................................... 22 Fund Financial Statements:

Governmental Fund Financial Statements:

Balance Sheet ............................................................................................................................................ 29 Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position .......................................................................... 30 Statement of Revenues, Expenditures, and Changes in Fund Balances .................................................... 31 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the
Government-Wide Statement of Activities ........................................................................................ 32 Proprietary Fund Financial Statements:

Statement of Net Position ......................................................................................................................... 35 Statement of Revenues, Expenses, and Changes in Net Position ............................................................. 36 Statement of Cash Flows ........................................................................................................................... 37 Fiduciary Fund Financial Statements:

Statement of Fiduciary Net Position ......................................................................................................... 41 Statement of Changes in Fiduciary Net Position ...................................................................................... 42 Index to Notes to the Basic Financial Statements .............................................................................................. 45 Notes to the Basic Financial Statements ............................................................................................................. 47 City of Commerce
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Table of Contents (Continued)
Page
FINANCIAL SECTION (Continued)
Required Supplementary Information (Unaudited):

Budgetary Comparison Schedule – General Fund ........................................................................................................ 91 Notes to the Budgetary Comparison Schedule ............................................................................................................. 93 Schedule of Changes in Net Pension Liability and Related Ratios .............................................................................. 94 Schedule of Contributions – Pensions .......................................................................................................................... 96 Schedule of Changes in Net OPEB Liability and Related Ratios ................................................................................. 98 Schedule of Contributions – Other Postemployment Benefits ................................................................................... 100 Supplementary Information:

Budgetary Comparison Schedule – General City Capital Projects Fund .................................................................. 105 General Funds:

Combining Balance Sheet ............................................................................................................................ 109 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances .................................... 110 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual:

General Operating Fund ......................................................................................................................... 111 Measure AA General Fund .................................................................................................................... 112 Nonmajor Governmental Funds:

Combining Balance Sheet ............................................................................................................................ 115 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances .................................... 117 Nonmajor Special Revenue Funds:

Combining Balance Sheet ............................................................................................................................ 118 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances .................................... 120 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual:

Art in Public Places Special Revenue Fund ........................................................................................... 122 Community Benefits Special Revenue Fund ......................................................................................... 123 Stormwater Management Special Revenue Fund .................................................................................. 124 Community Center Debt Service Fund .................................................................................................. 125 Pension Obligation Bonds Debt Service Fund ....................................................................................... 126

Private Purpose Trust Funds Financial Statements:

Combining Statement of Fiduciary Net Position .......................................................................................... 129 Combining Statement of Changes in Fiduciary Net Position ....................................................................... 130 City of Commerce
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Table of Contents (Continued)
Page
STATISTICAL SECTION (Unaudited)
Net Position by Component ....................................................................................................................................... 134 Changes in Net Position ............................................................................................................................................ 136 Fund Balances of Governmental Funds ..................................................................................................................... 140 Changes in Fund Balances of Governmental Funds .................................................................................................. 142 Assessed Value and Estimated Actual Value of Taxable Property ........................................................................... 145 Direct and Overlapping Property Tax Rates .............................................................................................................. 146 Principal Property Tax Payers ................................................................................................................................... 148 Property Tax Levies and Collections ......................................................................................................................... 149 Card Club License Fee by Category .......................................................................................................................... 150 Direct and Overlapping Card Club Rates .................................................................................................................. 152 Principal Card Club Remitter .................................................................................................................................... 153 Ratios of Outstanding Debt by Type ......................................................................................................................... 154 Ratio of General Bonded Debt Outstanding .............................................................................................................. 155 Direct and Overlapping Debt ..................................................................................................................................... 157 Legal Debt Margin Information................................................................................................................................. 158 Demographic and Economic Statistics ...................................................................................................................... 160 Principal Employers .................................................................................................................................................. 161 Full-time and Part-time City Employees ................................................................................................................... 162 Capital Asset Statistics .............................................................................................................................................. 163 This page intentionally left blank.
i
February 27, 2026

CITY OF COMMERCE
Ernie Hernandez
City Manager
To the Honorable Mayor, Members of the City Council and Citizens of the City of Commerce:

It is our professional pleasure to submit the Annual Comprehensive Financial Report (ACFR) of the City of Commerce for the fiscal year ending June 30, 2025. Responsibility for the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, rests with the City. In our opinion, the data is accurate in all material aspects, is presented in a manner designed to fairly set forth the financial position and results of operations of the City and contains all disclosures necessary to enable the reader to gain an understanding of the City's financial affairs. State law requires that all general-purpose local governments publish within six months of the close of each fiscal year a complete set of financial statements presented in conformity with accounting standards generally accepted in the United States of America (GAAP) and audited in accordance with generally accepted auditing standards by a firm of licensed certified public accountants.

The financial statements are prepared in accordance with (GAAP) as promulgated by the Government Accounting Standards Board (GASB). This report consists of management's representations concerning the finances of the City. Consequently, management assumes full responsibility for the completeness and reliability of all the information presented in this report. To provide a reasonable basis for making these representations, management of the City has established a comprehensive internal control framework that is designed both to protect the government's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City's financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the City's comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects.

The City's financial statements have been audited by The Pun Group, LLP, a public accounting firm fully licensed and qualified to perform audits of the State and local governments within the State of California. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City for the fiscal year ended June 30, 2025, are free of material misstatement. The independent audit involved examining on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the City financial statements for the fiscal year ended June 30, 2025, are fairly presented in conformity with GAAP. The independent auditor’s report is presented as the first component of the financial section of this report. 2535 Commerce Way• Commerce, California 90040 • (323) 722-4805 • FAX (323) 726-6231 • www.ci.commerce.ca.us ii
MANAGEMENT’S DISCUSSION & ANALYSIS
GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be read in conjunction with it. The City's MD&A can be found immediately following the report of the independent auditors in the financial section of the ACFR.

PROFILE OF THE CITY OF COMMERCE
The City, a general law City, incorporated in 1960 is located within the east-central portion of the County of Los Angeles, approximately 6 miles southeast of downtown Los Angeles and 20 miles northeast of the City of Long Beach and the Pacific Ocean. The City is oriented to industrial uses with industrially zoned land comprising approximately 85% of all land in the City. Residentially zoned property consists almost entirely of five separate neighborhoods with approximately 3,430 residential units. The City is a regional center of employment in the Los Angeles basin, with the business employee population of approximately 60,000 people considerably exceeding a residential population of approximately 12,124. The City's land mass encompasses 6.6 square miles.

The City operates under the Council-City Manager form of municipal government. The City Council appoints the City Manager who is responsible for the day-to-day administration of City business and the coordination of all departments of the City. Policymaking and legislative authority are vested in the City Council, which consists of the Mayor and four Council members.

The City Council is responsible, among other things, for passing ordinances, adopting the budget, appointing committees, and appointing the City Attorney. The City Manager is responsible for conducting the policies and ordinances of the City Council, for overseeing the day-to-day operations of the government. The five-member City Council is elected on a biennial cycle subject to four-year alternating terms, at large, on a non-partisan basis. The Mayor is selected by the City Council from among its members, serving a one-year term.

The City, as a contract city, provides a full range of services, including police (as a contract member of the Los Angeles County Sheriff's Department), fire protection (as a contract member of the Los Angeles County Fire Department), water service, street and infrastructure maintenance and construction, recreational and cultural services, planning and community development and general administration. The City also is financially accountable for the legally separate Governing Body of the Successor Agency to the Commerce Community Development Commission. On January 31, 2012, the City elected to serve as the Successor Agency to the Commerce Community Development Commission; the Commission functioned as the City's redevelopment agency. The Successor Agency has been responsible for winding down the Commission's obligations subject to the monitoring by and approval of the independent County of Los Angeles First District Oversight Board established by State law to oversee the dissolution process. The City has accounted for the Successor Agency as "blended" component units and therefore they have been included as an integral part of the City of Commerce's financial statements iii

LOCAL ECONOMY
The City is located within the Los Angeles Metropolitan area, recognized as the second-highest producing metro area in the United States based on Gross Metropolitan Product. With its proximity to the City of Los Angeles, the City serves as a major hub for commerce and transportation. The City is home to approximately 3,000 plus businesses, with its top 25 businesses accounting for 50% of the total sales tax revenue.

The City’s economy is supported by a diverse financial foundation, with revenues primarily generated through taxes and card club revenues. Among tax revenues, the largest contributors are Property Tax and Sales Tax, which includes the standard Bradley-Burns tax and an additional

0.75% add-on sales tax.

Commerce is home to the California Commerce Card Club and the Citadel Outlets (LA’s premier outlet shopping center, housing more than 130 global brands) and serves as the headquarters for several prominent companies, including Parsec, Inc., Acco Engineered Systems, American International Industries, Mission Foods, Japan Pulp and Paper Co., Unified Grocers and Porto’s Food Products.

FINANCIAL HIGHLIGHTS
As reflected in the financial statements presented in this report:
 The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of the fiscal year, reflecting a positive overall financial position.
 The City continued to maintain adequate fund balances in its governmental funds, providing a cushion against economic uncertainty and unforeseen events.  Investment earnings remained elevated relative to historical levels, driven by higher interest rates, providing additional short-term revenue support.  Capital assets continued to be maintained and enhanced through ongoing infrastructure investment and capital improvement projects.

Additional details regarding these and other financial highlights can be found in the MD&A and the accompanying financial statements and notes.

FINANCIAL CONTROLS
As mentioned, the City's management is responsible for establishing and maintaining a system of internal controls designed to ensure that the City's assets are protected from loss, theft, or misuse. The City’s system of internal controls must also ensure that adequate accounting data is compiled to allow for the preparation of financial statements in conformity with GAAP. The City's system of internal controls is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management. iv
We believe that the City's system of internal control adequately safeguards assets and provides reasonable assurance as to the proper recording of financial transactions.

The City's internal controls are subject to periodic evaluation by the City's management.

BUDGETARY CONTROLS
The City adopts an annual budget that serves as the legal authorization for expenditures.

Budgetary control is maintained at the fund and department level, and periodic budget-to-actual reports are presented to the City Council throughout the fiscal year. Management continues to emphasize conservative revenue forecasting, disciplined expenditure management, and transparency in financial reporting.

The annual budget serves as the foundation for the City financial planning and control.

All departments of the City are required to submit requests for appropriation to the City Manager and Finance Director each year. The City Manager and Finance Director use these requests as the starting point for developing a proposed budget. The City Manager and Finance Director then present this proposed budget to the City Council for review. The City Council is required to hold public hearings on the proposed budget and to adopt a final budget no later than June 30, the end of the City fiscal year.

The appropriated budget is prepared by fund (e.g., general), department (e.g., public works), and program (e.g., engineering). Department heads may make transfers of appropriations within a department. Transfers of appropriations between departments within the same fund require the City Manager's approval. Supplemental appropriations during the year and/or transfers between funds, however, require approval of the City Council. The City utilizes an encumbrance accounting system, whereby commitments such as purchase orders are recorded during the year.

Unexpended or unencumbered appropriations lapse at the end of the fiscal year. Encumbered appropriations are re-appropriated in the ensuing year's budget. Budget-to-actual comparisons are provided in this report for each individual governmental fund for which an appropriated annual budget has been adopted.

AWARDS & ACKNOWLEDGEMENT
The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Commerce for its annual comprehensive financial report (ACFR) for the fiscal year ended June 30, 2022. In order to be awarded a Certificate of Achievement, the City must publish an easily readable and efficiently organized ACFR. The 2022 report satisfied both GAAP and applicable legal requirements. v
A Certificate of Achievement is valid for a period of one year only. Due to the circumstances described below, the City did not submit its Annual Comprehensive Financial Report to the GFOA Certificate Program for the fiscal years ended June 30, 2023 and 2024.  The City's Director of Finance (which provided oversight and hands on work related to the past 10 audits) transitioned out of the role prior to the beginning of the fiscal year ended June 30, 2023 audit season. A new finance director was not hired until after the end of fiscal year ended June 30, 2024 audit season.

The preparation of this report could not have been completed without the dedicated efforts of the Finance Department staff and the cooperation of all City departments. Appreciation is also extended to the City Council and for their continued support of sound financial management policies and practices.

Respectfully submitted,

Ernie Hernandez
City Manager
City of Commerce
Alvaro Castellon
Director of Finance
City of Commerce
City of Commerce
Organizational Chart

THE PEOPLE OF

COMMERCE

CITY COUNCIL

VICE MAYOR

KEVIN LAINEZ

CITY COUNCIL
MAYOR

IVAN ALTAMIRANO

CITY COUNCIL

COUNCILMEMBER
ORALIA Y. REBOLLO

CITY COUNCIL

COUNCILMEMBER

MIREYA GARCIA

CITY COUNCIL

COUNCILMEMBER
HUGO A. ARGUMEDO

CITY MANAGER

ERNIE HERNANDEZ

CITY ATTORNEY

NOEL TAPIA

COMMUNITY

DEVELOPMENT

DIRECTOR

JESSICA SERRANO

LIBRARY

DIRECTOR

SONIA BAUTISTA
/Ed
Z/DPARK
ERECREATION

DIRECTOR

FINANCE

DIRECTOR

ALVARO CASTELLON

PUBLIC WORKS

DIRECTOR

SHAHID ABBAS

TRANSPORTATION

DIRECTOR

CLAUDE MCFERGUSON
K>&KDZYh

vi
vii

CITY OF COMMERCE, CALIFORNIA
Officials of the City of Commerce
June 30, 2025

CITY COUNCIL
Ivan Altamirano – Mayor
Kevin Lainez – Mayor Pro Tem
Hugo A. Argumedo – Councilmember
Mireya Garcia – Councilmember
Oralia Y. Rebollo– Councilmember

ADMINISTRATION AND DEPARTMENT HEADS
City Manager – Ernie Hernandez
Director of Community Development – Jessica Serrano
Director of Finance – Alvaro Castellon
Director of Library Services – Sonia Bautista
Director of Public Works – Shahid Abbas
Director of Transportation – Claude McFerguson
Assistant Director of Parks and Recreation – Adolfo Marquez viii
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6 Hutton Centre Drive, Suite 1200
Santa Ana, California 92707
INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and Members of the City Council
of the City of Commerce
Commerce, California
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 Commerce, California (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, business-type 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
Change in Accounting Principle - Implementation of GASB 101 As discussed in Notes 1 and 18 to the basic financial statements, the City adopted new accounting principle, Governmental Accounting Standards Board (“GASB”) Statement No. 101, Compensated absences. The adoption of this standard resulted in the restatement of the City’s net position as of June 30, 2024. Our opinion is not modified with respect to this matter.

Other Matter
Prior-Year Comparative Information
The financial statements include summarized prior-year comparative information. Such information does not include all of the information required or sufficient detail to constitute a presentation in accordance with accounting principles generally accepted in the United States of America. Accordingly, such information should be read in conjunction with the City’s financial statements for the year ended June 30, 2024, from which such summarized information was derived.

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

2 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, 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.

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

3 Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis, Budgetary Comparison Schedules, the Schedules of Changes in Net Pension Liability and Related Ratios, the Schedules of Contributions – Pensions, the Schedule of Changes in Net OPEB Liability and Related Ratios and the Schedule of Contributions – Other Postemployment Benefits, 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 Combining and Individual Fund Financial Statements 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 Combining and Individual Fund Financial Statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the annual report. The other information comprises the Introductory and Statistical Sections but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Report on Summarized Comparative Information
We have previously audited the City’s 2024 financial statements, and we expressed unmodified opinions on the respective financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information in our report dated June 30, 2025. In our opinion, the summarized comparative information presented herein as of and for the year ended June 30, 2024, is consistent, in all material respects, with the audited financial statements from which it has been derived.

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

4 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated February 27, 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 the City’s 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.

Santa Ana, California
February 27, 2026
5 MANAGEMENT’S DISCUSSION

AND ANALYSIS
6 This page intentionally left blank.

City of Commerce
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2025
7 As management of the City of Commerce (the “City”), California, we offer readers a narrative overview and analysis of the City’s financial statements. This reflects the City’s financial activities for the fiscal year ending June 30, 2025.

We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, found on page i. of this report.

FINANCIAL HIGHLIGHTS
 The City’s net position is $182.6 million. Net position is the difference between assets plus deferred outflows of resources, and liabilities plus deferred inflows of resources.  The City’s total assets for the FY 2024-2025 period equaled $318.8 million, an increase of $19.6 million from the prior year. This growth is driven by ongoing investments in multi-year road, utility, and facility improvement projects currently in progress.
 Deferred outflows of resources decreased by $6.3 million (to $6.5 million) and deferred inflows of resources decreased by $0.3 million (to $14.2 million). These fluctuations were due primarily to market performance of investments in trust funds and actuarial assumptions for benefits.  The City’s liabilities equaled $128.5 million, an increase of $2.0 million from the prior year. Total liabilities decreased primarily due to favorable actuarial adjustments to pension and other post-employment obligations, though this was partially offset by an increase in outstanding payables.  The City’s total net position increased by $14.1 million, signaling a strengthened financial condition. This growth was primarily driven by revenues exceeding expenses and significant investments in capital projects, much of which was funded by State/Federal grants and internal contributions rather than new debt.  At the close of the current fiscal year, the City’s net position of governmental activities was $188.4 million, an increase of $16.4 million from the prior year. This represents a strengthened financial position for the City’s core governmental services.
 Total government activities revenues from all sources in FY 2024-25 equaled $102.5 million. Governmental revenues increased by $4.4 million over the prior year. This growth was primarily driven by combined increases in operating and capital grants and contributions of $7.0 million, which funded the City's expanded infrastructure and service goals. While overall tax revenues saw a slight decrease of $2.7 million, property tax collections remained a stable core source of funding, increasing by $1.2 million due to rising assessed valuations.
 Total governmental activities expenses in FY 2024-25 equaled $86.2 million. Governmental expenses increased by $6.3 million compared to the prior year. This rise was due primarily to increased costs in public works maintenance, repairs, and infrastructure improvement costs, though the impact was partially mitigated by favorable actuarial adjustments to pension and OPEB obligations. Despite higher operational costs, total revenues remained sufficient to cover all expenses, contributing to the overall increase in net position."  At the end of the current fiscal year, unassigned fund balance for the General Fund was $115.7 million, or 117.8% of total General Fund expenditure. This reflects a robust liquidity position that far exceeds the Government Finance Officers Association (GFOA)-recommended minimum of 16.7%. This excess in unassigned fund balance provides the City with substantial financial flexibility to address unforeseen emergencies, one-time capital needs, and future economic uncertainties without impacting core services.

City of Commerce
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
8 OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis are intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements are comprised of three components: 1) Government-wide financial statements 2) Fund financial statements and 3) Notes to the financial statements. This report also contains (i) required supplementary information and (ii) supplementary information in support of the basic financial statements.

Government-wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner like disclosures for a private-sector business.

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

The statement of activities presents information designed to show how the City’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will impact cash flow in future fiscal periods.

Both government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities). The governmental activities of the city include general government operations, community development, public safety, public works, libraries, parks and recreation services.

The City’s business-type activities include operations from transit, water, and compressed natural gas (CNG).

The government-wide financial statements can be found on pages 20 through 23.

Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other states and local governments, uses fund accounting to ensure and show compliance with finance-related legal requirements. All the funds of the City can be divided into three categories:
governmental funds, proprietary funds and fiduciary funds.

Governmental Funds - Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating the City’s near-term financial requirements.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide statements.

City of Commerce
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
9 Most of the City’s basic services are included in governmental funds. The basis of accounting is different between the governmental fund statements and the government-wide financial statements. The governmental funds focus on near term revenues/financial resources and expenditures, while the government-wide financial statements include both near term and long-term revenues/financial resources and expenses. The information in the governmental fund statements can be used to evaluate the City’s near-term financing requirements and immediate fiscal health. By comparing the governmental fund statements with the government-wide financial statements, the reader gains a better understanding of the long-term impacts of the City’s current year financing decisions. To assist in this comparison, reconciliations between the governmental fund statements and the government-wide financial statements are included with the governmental fund balance sheet and the governmental fund statements of revenues, expenditures, and changes in fund balances.

The governmental fund financial statements can be found on pages 29 through 32.

Proprietary Funds - Proprietary funds are used by governments to account for their business-type activities. Businesstype activities provide specific goods or services to a group of customers that are paid for by fees charged to those customers. There is a direct relationship between the fees paid and the services received.

Enterprise funds of the City are used to report the same functions presented as business-type activities in the government-wide statements with the fund statements providing more detail than is reported in the government-wide statements. The City has three major enterprise funds, the Transit Fund, CNG Fund and Water Fund.

The proprietary fund financial statements can be found on pages 35 through 37.

Fiduciary funds
Fiduciary funds account for assets held by the City in a trustee capacity or as an agent for individuals, private organizations, other governments, or other funds. Fiduciary funds are not included in the government-wide financial statements because their assets are not available to support the City’s activities. The City has one Custodial Fund.

The fiduciary fund financial statements can be found on page 41 through 42.

Notes to the financial statements
The notes to the financial statements provide additional information that is important to a full understanding of the data in the government-wide and fund financial statements. The notes are located immediately following the basic financial statements.

Other information
In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information. Required supplementary information may be found immediately following the notes to the financial statements.

The combining statements for other governmental funds, the individual fund schedules, the non-major enterprise funds, and the internal service funds statements are presented immediately following the required supplementary information.

City of Commerce
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
10 GOVERNMENT-WIDE FINANCIAL ANALYSIS
The City has presented its financial statements under the reporting model required by the Governmental Accounting Standards Board Statement No. 34 (GASB 34), Basic Financial Statements – and Management’s Discussion and Analysis (MD&A) – for State and Local Governments. A comparative analysis of government-wide data will be included in this report.

The statement of net position can serve as a useful indicator of the City’s financial position. The City’s net position on June 30, 2025, total $182.6 million. The following is a condensed version of the government-wide statement of net position as of June 30, 2025 and 2024.
2025 2024 2025 2024 2025 2024
Assets:

Current and other assets 180,983,680 $ 182,157,684 $ 4,484,887 $ 4,922,699 $ 185,468,567 $ 187,080,383 $ Capital assets, net 117,174,261 94,357,845 16,121,755 17,679,317 133,296,016 112,037,162 Total assets 298,157,941 276,515,529 20,606,642 22,602,016 318,764,583 299,117,545 Deferred outflows of resources:

Pension related 2,798,423 7,070,532 969,481 2,382,051 3,767,904 9,452,583 OPEB related 2,035,196 2,538,793 705,070 855,316 2,740,266 3,394,109 Total deferred outflows of resources 4,833,619 9,609,325 1,674,551 3,237,367 6,508,170 12,846,692 Liabilities:

Current liabilities 19,646,071 13,365,190 1,171,909 807,739 20,817,980 14,172,929 Long-term liabilities 88,889,944 92,868,465 18,787,175 19,455,591 107,677,119 112,324,056 Total liabilities 108,536,015 106,233,655 19,959,084 20,263,330 128,495,099 126,496,985 Deferred inflows of resources:

Pension related 763,512 500,675 264,510 168,677 1,028,022 669,352 OPEB related 5,319,340 4,669,522 1,842,825 1,573,154 7,162,165 6,242,676 Lease related - 809,366 5,979,058 6,750,550 5,979,058 7,559,916 Total deferred inflows of resources 6,082,852 5,979,563 8,086,393 8,492,381 14,169,245 14,471,944 Net Position:

Net investment in
capital assets 106,117,281 85,825,193 16,121,755 17,679,317 122,239,036 103,504,510 Restricted 16,977,993 16,561,635 - - 16,977,993 16,561,635 Unrestricted 65,277,419 71,524,808 (21,886,039) (20,595,645) 43,391,380 50,929,163 Total net position (deficit) 188,372,693 $ 173,911,636 $ (5,764,284) $ (2,916,328) $ 182,608,409 $ 170,995,308 $ Note: a change in accounting principle is treated prospectively, prior periods are not restated due to GASB 101 implementation.

Governmental Activities Business-type Activities Total
Net Position
Changes in net position
The changes in net position illustrate the increase or decrease in net position of the City resulting from its operating activities. The City’s net position increased $11.6 million in the fiscal year ended June 30, 2025. The increase was split between the governmental activities of $14.5 million and business-type activities of ($2.8) million. This City’s net position increased as a result of a net surplus for the fiscal year, reflecting positive financial performance and prudent management of revenues and expenditures.

City of Commerce
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
11 The following is a condensed version of the City’s changes in net position for the years ended June 30, 2025 and 2024.

The table shows the revenues, expenses, and related changes in net position for governmental and business-type activities.
2025 2024 2025 2024 2025 2024
Revenues:

Program revenues
Charges for services 10,076,683 $ 9,734,469 $ 3,548,971 $ 3,667,239 $ 13,625,654 $ 13,401,708 $ Operating grants & contributions 9,720,037 5,144,051 7,315,494 6,874,935 17,035,531 12,018,986 Capital grants & contributions 2,497,819 7,825 37,935 - 2,535,754 7,825 General revenues:

Casino license tax 30,563,683 31,436,082 - - 30,563,683 31,436,082 Property tax 6,353,396 5,110,125 - - 6,353,396 5,110,125 Sales tax 35,672,946 38,642,346 - - 35,672,946 38,642,346 Franchise taxes 1,592,865 1,613,037 - - 1,592,865 1,613,037 Transient occupancy taxes 3,055,971 3,164,668 - - 3,055,971 3,164,668 Motor vehicle in-lieu - 15,289 - - - 15,289
Investment income 2,163,787 2,441,907 235,845 156,062 2,399,632 2,597,969 Miscellaneous revenue 819,290 787,653 - - 819,290 787,653 Total revenues 102,516,477 98,097,452 11,138,245 10,698,236 113,654,722 108,795,688 Expenses:

General government 18,426,470 16,528,267 - - 18,426,470 16,528,267 Community development 592,402 5,308,728 - - 592,402 5,308,728 Public safety 28,147,984 27,821,008 - - 28,147,984 27,821,008 Public works 22,399,581 14,532,596 - - 22,399,581 14,532,596 Library 3,884,185 3,890,316 - - 3,884,185 3,890,316
Parks recreation and culture 11,674,460 10,843,894 - - 11,674,460 10,843,894 Interest on long-term debt 1,026,161 906,354 - - 1,026,161 906,354 Transit - - 10,374,611 10,904,732 10,374,611 10,904,732 CNG/LNG - - 2,902,782 2,934,201 2,902,782 2,934,201
Water - - 119,712 212,107 119,712 212,107
Total expenses 86,151,243 79,831,163 13,397,105 14,051,040 99,548,348 93,882,203 Change in net position 16,365,234 18,266,289 (2,258,860) (3,352,804) 14,106,374 14,913,485 Net position at beginning of year 173,911,636 155,645,347 (2,916,328) 436,476 170,995,308 156,081,823 Restatement - Change in accounting
principles (1,904,177) - (589,096) - (2,493,273) -
Net position - end of year 188,372,693 $ 173,911,636 $ (5,764,284) $ (2,916,328) $ 182,608,409 $ 170,995,308 $ Note: a change in accounting principle is treated prospectively, prior periods are not restated due to GASB 101 implementation.

Governmental Activities Business-type Activities Total
Change in Net Position
Additional financial highlights are shown below:

The City’s total revenues were $113.7 million. A significant portion of governmental revenues came from combined sales tax (34.8%), casino license tax (29.8%), operating and capital grants and contributions (12.0%) and charges for services (9.8%) of the total governmental revenues of $102.5 million. A significant portion of the business-type revenues were collected from charges for services (31.9%) and operating grants & contributions (66.0%) of the total business-type revenues of $11.1 million.

The total cost of all city programs and services during the fiscal year ended June 30, 2025, was $99.5 million. The breakdown by activity as a percentage of total expenses for selected programs are as follows: Public Safety (police and fire) 28.3%; General Government 18.5%; Public Works 22.5%; Parks and Recreation 11.7%; and Business-type activities accounted for 13.5% of total costs. The remaining three areas, all less than 6% each, comprise the balance.

City of Commerce
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
12 Change in net position represents an increase of $14.1 million for the year, as compared to last year's change, representing an increase of $14.9 million. Total net position at the end of the year was $182.6 million. The City has ample amounts to provide for its outstanding indebtedness.

Governmental activities experienced an increase in net position of $14.5 million. This is primarily due to an increase in governmental revenues as highlighted above.

Business-type activities consist of the Transit, Water, and CNG Funds. The financial goal of the City’s business-type activities is to operate on a “break-even” basis without making significant profit or needing general tax subsidies. For the fiscal year ended June 30, 2025, this goal was not met, with the City’s total business-type activities having realized an overall decrease in net position of $2.8 million. This decrease in net position is primarily due to expenditures outpacing program revenues. Although there was an increase in program revenues and slight decrease in operating expenses overall, expenditure continued to outpace program revenues significantly. Significant increases in revenues, as compared to prior year, include $0.5 million in overall operating and capital grant and contributions from Metro local funding and Federal Transit programs. Expenditures have decreased by $0.6 million from prior year.

FINANCIAL ANALYSIS OF GOVERNMENT FUNDS
Below is an analysis of the City’s major governmental fund activities for the year:

Balance at Balance at Amount Increase Precent Increase
June 30, 2025 June 30, 2024 (Decrease) (Decrease)
Total Fund Balances:

General Fund $ 155,757,029 152,022,922 $ (3,734,107) $ -2.4% General City Capital Projects Fund 8,289,681 1,152,266 (7,137,415) -86.1% Nonmajor Governmental Funds 7,262,377 6,552,418 709,959 -10.8% Total Fund Balances 160,437,565 $ 170,599,128 $ (10,161,563) $ -6.0% Governmental Funds
Total Fund balances balance decreased by $10.1 million from prior year due to an increase in ongoing investments in multi-year road, utility, and facility improvement projects currently in progress. Major projects include pavement rehabilitation projects, Veteran’s Park Remediation project fully funded by California Department of Toxic Substances and Control (DTSC), facility projects like the Bandini Learning Center improvements, and Commerce Connectivity improvements (part of the Pathways for Hope project).

The General City Capital Projects Fund changed from a nonmajor fund to a major fund ($8,289,681).

The Nonmajor Governmental fund balance increased by $0.7 million due to primarily to special revenue fund revenue programs outpacing program expenditures in stormwater management, road maintenance and rehabilitation, and art in public places.

City of Commerce
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
13 FINANCIAL ANALYSIS OF THE CITY’S MAJOR PROPRIETARY FUNDS Below is an analysis of the net position of the City’s proprietary funds:

Balance at Balance at Amount Increase Precent Increase
June 30, 2025 June 30, 2024* (Decrease) (Decrease)
Net Position (Deficit):

Transit (14,259,027) $ (10,577,929) $ (3,681,098) $ -34.8% CNG/LNG 3,864,154 4,011,986 (147,832) -3.7%
Water 4,630,589 3,060,519 1,570,070 -51.3%
Total Net Position (5,764,284) $ (3,505,424) $ (2,258,860) $ -64.4% Unrestricted Net Position (Deficit):

Transit (26,981,863) $ (24,565,610) $ (2,416,253) $ -9.8% CNG/LNG 1,143,608 1,199,149 (55,541) -4.6%
Water 3,952,216 2,181,720 1,770,496 -81.2%
Total Unrestricted Net Position (Deficit) (21,886,039) $ (21,184,741) $ (701,298) $ -3.3% * 2024 balances were restated due to GASB 101 implementation. (see Note 18 for details.) Proprietary Funds
The Transit Fund net position decreased by $3.7 million and unrestricted net position decreased by $2.4 million.

Transit’s operational costs have been significantly higher than the intergovernmental revenue for the fiscal year.

The Water Fund net position increased $1.6 million and unrestricted net position increased by $1.8 million. The increase in net position is primarily due to the current year leased water system rights revenues exceeding the operating expenses and an increase in interest income.

General Fund Budgetary Highlights
The General Fund receives the most public attention since it is where local tax revenues are accounted for and where the most popular municipal services such as police and public works are funded.

The General Fund is the chief operating fund of the City, which is used to account for all discretionary revenues and expenditures necessary to carry out basic government functions that are not accounted for through other special revenue and grant funds. Year-to-date revenues, including transfers-in and other financing sources totaled $98.4 million. This is a 1.3% decrease when compared to last year’s revenue total of $97.1 million. The largest revenue source was taxes, which include both sales taxes and property taxes at $46.7 million which decreased 3.8% or $1.8 million compared to the prior year. While sales tax revenues decreased by $3.0 million, property taxes increased by $1.4 million from prior year due to increases in assessed valuations. Casino license tax totaled $30,563,683, down by $0.9 million or 2.8% when compared to the prior year. This decrease is due to the Casino reporting slightly less revenue growth than the prior year. Overall, the City’s revenue came in over budget by $11.2 million, above expectations for property and sales tax, casino tax, charges for services, and lease revenue and interest income.

General Fund expenditures totaled $102.1 million, including transfer out, and were under budgeted totals for the fiscal year by $30.0 million, due primarily to lower-than-anticipated progress for public works and capital projects expenditures as planned for the fiscal year.

City of Commerce
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
14 Capital Assets
Below is a schedule of the City’s capital assets, net of accumulated depreciation and amortization:

Balance at Balance at Amount Increase Precent Increase
June 30, 2025 June 30, 2024 (Decrease) (Decrease)
Governmental Activities:

Land 12,946,340 $ 12,946,340 $ - $ 0.0%
Construction in progress 29,760,679 7,979,927 21,780,752 272.9% Buildings 43,210,991 43,210,991 - 0.0%
Improvements other than buildings 22,067,454 21,174,610 892,844 4.2% Machinery and equipment 9,950,824 8,451,671 1,499,153 17.7% Infrastructure 139,712,248 137,427,822 2,284,426 1.7%
Right to use assets 2,295,187 1,817,541 477,646 26.3%
Less accumulated depreciation and amortization (142,229,462) (138,651,057) (3,578,405) 2.6% Net capital assets 117,714,261 $ 94,357,845 $ 23,356,416 $ 24.8% Business Activities:

Land 2,755,498 $ 2,755,498 $ - $ 0.0%
Building and improvements 13,112,526 13,112,526 - 0.0%
Machinery and equipment 19,613,269 19,635,165 (21,896) -0.1% Water rights 2,141,222 2,141,222 - 0.0%
Less accumulated depreciation and amortization (21,500,760) (19,965,094) (1,535,666) 7.7% Net capital assets 16,121,755 $ 17,679,317 $ (1,557,562) $ -8.8% Governmental capital assets increased primarily as construction in progress increased due to project progress and addition of new projects. Capital assets are offset by depreciation while infrastructure, right to use assets, machinery and equipment, and accumulated depreciation and amortization increased respectively from completion of projects.

Business-type activity capital assets saw no activity other than an increase in depreciation and amortization. See note 6 for further details on capital assets.

Debt Administration
Below is a schedule of the changes to the City’s long-term debt:

Balance at Balance at Amount Increase Precent Increase
June 30, 2025 June 30, 2024* (Decrease) (Decrease)
Governmental Activities:
2014 JPFA Revenue Bonds 12,750,000 $ 6,610,000 $ 6,140,000 $ 92.9% Premium on bond 1,184,582 622,408 562,174 90.3%
2021 Pension Obligation Bond 54,225,000 27,875,000 26,350,000 94.5% Finance Purchase (175,276) - (175,276) 0.0%
Lease Liability 1,919,684 1,097,928 821,756 74.8%
Subscription Liability 240,287 202,316 37,971 18.8%
Compensated absences 8,755,375 5,122,981 3,632,394 70.9% Claims Payable 1,131,410 859,237 272,173 31.7%
Total Long-Term Obligations - Governmental Activities 80,031,062 42,389,870 37,641,192 88.8% Business Activities:

Compensated Absences 2,244,590 1,259,465 985,125 78.2%
Claims Payable 124,088 65,679 58,409 88.9%
Total Long-Term Obligations - Business-Type Activities 2,368,678 1,325,144 1,043,534 78.7% Total Long-Term Obligations 82,399,740 $ 43,715,014 $ 38,684,726 $ 88.5% * 2024 balances were restated due to GASB 101 implementation. (see Note 18 for details.) City of Commerce
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
15 As can be seen from the table above, the City has stabilized its debt financing strategy in support of projects. In fiscal 2018, the City’s 2007 JPFA bonds were refinanced, and the resulting new issuance is recorded solely in the Successor Agency. In fiscal year 2025, City of Commerce entered a finance purchase arrangement for two MCI buses. The City has entered into lease agreements with Enterprise Fleet management for vehicles. The City also has subscriptions and technology arrangements. Information on the long-term liabilities is discussed further in Note 7 of the Financial Statements.

ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS
The adopted General Fund budget for fiscal year 2025-26 totals approximately $81.7 million. The budget is structurally balanced, with ongoing revenues supporting ongoing expenditures, and reflects targeted investments in several key areas. These include MOU-approved salary and benefit adjustments, continued support for public safety initiatives, and the restoration of programs that were reduced or suspended during the COVID-19 pandemic. In addition, the City continues to make significant investments in capital and infrastructure projects.

Major City tax revenues have largely recovered from pandemic-related declines, and projected development activity is expected to generate both one-time and ongoing revenues over the coming years. At the same time, expenditure pressures continue to grow due to rising costs associated with personnel, services, public safety operations, and infrastructure maintenance, as well as other City Council priorities.

Historical financial trends demonstrate that General Fund operating expenditures and transfers may exceed operating revenues, sometime in the future, underscoring the importance of long-term financial planning. The City remains focused on aligning service levels with available resources to ensure that ongoing revenues are sufficient to support recurring expenditures, while limiting reliance on one-time revenues to non-recurring costs. The City’s financial policies emphasize fiscal responsibility, flexibility, and adherence to sound accounting and management practices.

REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the City of Commerce finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Finance Director at the City of Commerce, 2535 Commerce Way, Commerce, CA 90040.
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BASIC FINANCIAL STATEMENTS
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18 GOVERNMENT-WIDE FINANCIAL STATEMENTS
19 Governmental Business-Type 2024
Activities Activities 2025 (as restated)
ASSETS
Current assets:

Cash and investments 125,496,342 $ 4,770,719 $ 130,267,061 $ 129,881,746 $ Receivables:

Accounts 4,313,147 355,834 4,668,981 4,638,965
Interest 1,113,761 - 1,113,761 545,508
Lease receivable, current - 752,783 752,783 1,948,495
Due from other governments 12,616,891 324,994 12,941,885 9,273,670 Internal balance 7,125,112 (7,125,112) - -
Due from Successor Agency - - - 3,014,695
Prepaid items and deposits 468,840 - 468,840 296,422
Total current assets (920,782) 151,134,093 150,213,311 149,599,501 Noncurrent assets:

Restricted cash and investments 6,938,923 - 6,938,923 3,267,339 Cash with fiscal agent 2,201 - 2,201 5,146,628
Lease receivable, noncurrent - 5,405,669 5,405,669 6,158,452 Loans receivable, net 207,783 - 207,783 207,783
Property held for resale 22,700,680 - 22,700,680 22,700,680 Capital assets:

Nondepreciable 42,707,019 2,755,498 45,462,517 23,681,765 Depreciable, net 72,785,768 12,939,616 85,725,384 86,576,087 Amortizable, net 1,681,474 426,641 2,108,115 1,779,310
Total capital assets 117,174,261 16,121,755 133,296,016 112,037,162 Total noncurrent assets 21,527,424 147,023,848 168,551,272 149,518,044 Total assets 298,157,941 20,606,642 318,764,583 299,117,545

DEFERRED OUTFLOWS OF RESOURCES
Pension related 2,798,423 969,481 3,767,904 9,452,583
OPEB related 2,035,196 705,070 2,740,266 3,394,109
Total deferred outflows of resources 4,833,619 1,674,551 6,508,170 12,846,692 (with comparative information for the prior year)
City of Commerce
Statement of Net Position
June 30, 2025
Primary Government Total
See accompanying Notes to the Basic Financial Statements. 20 Governmental Business-Type 2024
Activities Activities 2025 (as restated)

LIABILITIES
Current liabilities:

Accounts payable 11,307,582 542,697 11,850,279 8,034,580 Salaries and benefits payable 914,988 245,883 1,160,871 808,109 Deposits payable 874,513 - 874,513 725,535
Retentions payable 1,437,256 - 1,437,256 -
Unearned revenue 377,664 - 377,664 157,816
Accrued interest 379,704 - 379,704 341,049
Compensated absences - due within one year 1,104,864 367,172 1,472,036 2,075,429 Claims payable - due within one year 515,790 16,157 531,947 485,260 Long-term debt - due within one year 2,733,710 - 2,733,710 2,354,693 Total current liabilities 1,171,909 19,646,071 20,817,980 14,982,471 Noncurrent liabilities:

Compensated absences - due in more than one year 2,527,530 617,953 3,145,483 4,307,017 Claims payable - due in more than one year 844,156 56,626 900,782 439,656 Long-term debt - due in more than one year 33,236,014 - 33,236,014 34,052,959 Net pension liability 9,040,225 3,131,887 12,172,112 15,777,767 Net OPEB liability 43,242,019 14,980,709 58,222,728 59,430,388 Total noncurrent liabilities 18,787,175 88,889,944 107,677,119 114,007,787 Total liabilities 19,959,084 108,536,015 128,495,099 128,990,258

DEFERRED INFLOWS OF RESOURCES
Pension related 763,512 264,510 1,028,022 669,352
OPEB related 5,319,340 1,842,825 7,162,165 6,242,676
Lease related 5,979,058 - 5,979,058 7,559,916
Total deferred inflows of resources 6,082,852 8,086,393 14,169,245 14,471,944

NET POSITION
Net investment in capital assets 106,117,281 16,121,755 122,239,036 103,504,510 Restricted for:

Community development projects 60,011 - 60,011 2,165,838 Public safety 234,032 - 234,032 207,977
Low and moderate housing 2,228,603 2,228,603 - 2,197,365 Transportation 3,946,703 3,946,703 - 675,448
Public works 2,036,654 2,036,654 - -
Capital projects 4,940,168 4,940,168 - 8,044,943
Debt service 2,201 - 2,201 2,725
Pension 3,529,621 3,529,621 - 3,267,339
Total restricted 16,977,993 16,977,993 - 16,561,635
Unrestricted (deficit) 65,277,419 (21,886,039) 43,391,380 48,435,890 Total net position (deficit) $ (5,764,284) 188,372,693 $ 182,608,409 $ 168,502,035 $ (with comparative information for the prior year)
Primary Government Total
City of Commerce
Statement of Net Position (Continued)
June 30, 2025
See accompanying Notes to the Basic Financial Statements. 21 Operating Capital Total
Charges for Grants and Grants and Program
Functions/Programs Expenses Services Contributions Contributions Revenues Governmental activities:

General government $ 18,426,470 $ 809,102 $ 1,448,046 $ 2,257,148 - $ Community development 592,402 136,138 4,036,137 4,172,275 - Public safety 28,147,984 1,558,010 208,355 1,766,365 -
Public works 22,399,581 6,967,911 2,242,538 2,497,819 11,708,268 Library 3,884,185 9,396 110,510 119,906 -
Parks, recreation and culture 11,674,460 596,126 1,674,451 2,270,577 - Interest and fiscal charges 1,026,161 - - - -
Total governmental activities 86,151,243 10,076,683 9,720,037 2,497,819 22,294,539 Business-type Activities:

Transit 10,374,611 50,070 7,315,494 37,935 7,403,499
CNG/LNG 2,902,782 2,727,409 - 2,727,409 -
Water 119,712 771,492 - 771,492 -
Total business-type activities 13,397,105 3,548,971 7,315,494 37,935 10,902,400 Total primary government $ 13,625,654 99,548,348 $ 17,035,531 $ 2,535,754 $ 33,196,939 $ (with comparative information for the prior year)
City of Commerce
Statement of Activities
For the Year Ended June 30, 2025
Program Revenues
See accompanying Notes to the Basic Financial Statements. 22 Governmental Business-Type 2024
Functions/Programs Activities Activities 2025 (as restated) Governmental activities:

General government $ (16,169,322) $ (16,169,322) - $ $ (15,909,159) Community development 3,579,873 3,579,873 - (4,523,350) Public safety (26,381,619) (26,381,619) - (26,203,324)
Public works (10,691,313) (10,691,313) - (5,648,880)
Library (3,764,279) (3,764,279) - (3,721,297)
Parks, recreation and culture (9,403,883) (9,403,883) - (8,032,454) Interest and fiscal charges (1,026,161) (1,026,161) - (906,354) Total governmental activities (63,856,704) (63,856,704) - (64,944,818) Business-type Activities:

Transit (2,971,112) - (2,971,112) (4,029,797)
CNG/LNG (175,373) - (175,373) (38,454)
Water 651,780 - 651,780 559,385
Total business-type activities (2,494,705) - (2,494,705) (3,508,866) Total primary government (2,494,705) (63,856,704) (66,351,409) (68,453,684) General revenues:

Taxes:

Property taxes 6,353,396 - 6,353,396 5,110,125
Sales taxes 35,672,946 - 35,672,946 38,642,346
Franchise taxes 1,592,865 - 1,592,865 1,613,037
Transient occupancy taxes 3,055,971 - 3,055,971 3,164,668 Casino license tax 30,563,683 - 30,563,683 31,436,082
Total taxes 77,238,861 - 77,238,861 79,966,258
Vehicle license - unrestricted - - - 15,289
Investment income 2,163,787 235,845 2,399,632 2,597,969 Miscellaneous 819,290 - 819,290 787,653
Total general revenues 235,845 80,221,938 80,457,783 83,367,169 Changes in net position (2,258,860) 16,365,234 14,106,374 14,913,485 Beginning of year, as previously reported (2,916,328) 173,911,636 170,995,308 156,081,823 Implementation of GASB 101 (589,096) (1,904,177) (2,493,273) (2,493,273) Beginning of year, as restated (Note 18) (3,505,424) 172,007,459 168,502,035 153,588,550 Net position (deficit) - end of year $ (5,764,284) 188,372,693 $ 182,608,409 $ 168,502,035 $ Total
(with comparative information for the prior year)
City of Commerce
Statement of Activities (Continued)
For the Year Ended June 30, 2025
Changes in Net Position
Net (Expense) Revenue and
See accompanying Notes to the Basic Financial Statements. 23 This page intentionally left blank.
24 FUND FINANCIAL STATEMENTS
25 This page intentionally left blank.
26 GOVERNMENTAL FUND FINANCIAL STATEMENTS
27 This page intentionally left blank.
28 General City Nonmajor
General Capital Projects Governmental
Fund Fund Funds 2025 2024
ASSETS
Cash and investments 115,587,086 $ 3,689,645 $ 6,219,611 $ 125,496,342 $ 126,532,532 $ Restricted cash and investment 3,596,730 3,342,193 - 6,938,923 3,267,339 Cash and investments with fiscal agents - - 2,201 2,201 5,146,628 Receivables: -
Accounts 4,313,147 - - 4,313,147 4,268,321
Interest 817,207 - 296,554 1,113,761 545,508
Loans, net - - 207,783 207,783 207,783
Leases - - - - 1,207,549
Due from other governments 7,373,860 5,153,967 89,064 12,616,891 8,623,201 Due from other funds 14,504,522 - - 14,504,522 6,861,214 Due from Successor Agency - - - - 2,557,410
Prepaid items and deposits 468,840 - - 468,840 296,422
Land held for development 19,535,000 2,439,680 726,000 22,700,680 22,700,680 Total assets $ 14,625,485 166,196,392 $ 7,541,213 $ 188,363,090 $ 182,214,587 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable 10,184,222 $ 1,002,390 $ 118,750 $ 11,305,362 $ 7,624,884 $ Salaries and benefits payable 912,838 - 2,150 914,988 642,980 Deposits payable 874,513 - 874,513 - 725,535
Retentions payable 1,222,216 215,040 1,437,256 - -
Due to other governments - 2,220 - 2,220 -
Due to other funds 7,379,290 - 7,379,410 120 56,903
Unearned revenue 219,848 - 157,816 377,664 157,816
Total liabilities 13,193,789 8,818,788 278,836 22,291,413 9,208,118 Deferred inflows of resources:

Unavailable revenue 979,681 4,654,431 5,634,112 - 1,597,975 Lease related - - - 809,366 -
Total deferred inflows of resources 979,681 4,654,431 5,634,112 - 2,407,341 Fund balances:

Nonspendable 20,003,840 - 20,003,840 - 19,831,422
Restricted 3,529,621 3,342,193 5,288,268 12,160,082 14,963,660 Committed 12,796,957 1,974,109 - 14,771,066 29,885,255
Unassigned (deficit) 115,692,504 (2,189,927) 113,502,577 - 105,918,791 Total fund balances 152,022,922 1,152,266 7,262,377 160,437,565 170,599,128 Total liabilities, deferred inflows of
resources, and fund balances $ 166,196,392 $ 14,625,485 $ 7,541,213 $ 188,363,090 $ 182,214,587 Total Governmental Funds
City of Commerce
Balance Sheet
Governmental Funds
June 30, 2025
(with comparative information for the prior year)
Major Funds
See accompanying Notes to the Basic Financial Statements. 29 Total Fund Balances - Total Governmental Funds $ 160,437,565 Amounts reported for governmental activities in the statement of net position are different because:

Capital assets, not being depreciated 42,707,019 $
Capital assets, depreciable 72,785,768
Intangible assets, being amortized 1,681,474 117,174,261 (379,704)
Bonds payable (33,235,582) $
Finance purchase (1,052,853)
Lease and subscription liabilities (1,681,289)
Compensated absences (3,632,394)
Claims payable (1,359,946) (40,962,064)
$ 2,798,423
(9,040,225)
(7,005,314) (763,512)
OPEB related deferred outflows of resources 2,035,196 $ (43,242,019)
(46,526,163) (5,319,340)
5,634,112
Net position of governmental activities $ 188,372,693
Net OPEB liabilities
Revenues earned but not available to pay for current expenditures for governmental funds are unavailable.

OPEB related deferred inflows of resources
Pension related deferred inflows of resources
Pension related deferred outflows of resources
Long-term liabilities were not due and payable in the current period. Therefore, they were not reported in the Governmental Funds' Balance Sheet.

Interest is recognized when due, and therefore, interest payable is not reported in the governmental funds.

Amount reported in government-wide statement of position:

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

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

Net pension liabilities
City of Commerce
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2025
Capital assets used in governmental activities are not financial resources and are not reported in the funds:

See accompanying Notes to the Basic Financial Statements. 30 General City Nonmajor
General Capital Projects Governmental
Fund Fund Funds 2025 2024
REVENUES:

Taxes 46,675,178 $ - $ - $ 46,675,178 $ 48,530,176 $
Casino license tax 30,563,683 - - 30,563,683 31,436,082 Licenses and permits 7,283,632 - 231,230 7,514,862 6,574,738 Intergovernmental 2,891,286 759,519 1,883,063 5,533,868 3,106,606 Charges for services 2,050,164 - - 2,050,164 2,562,317
Activity fees 514,423 - - 514,423 527,460
Fines, forfeitures, and penalties 1,567,406 - - 1,567,406 1,438,638 Use of money and property 2,653,525 - 195,685 2,849,210 2,852,191 Miscellaneous 1,161,678 - 49,868 1,211,546 914,980
Total revenues 759,519 95,360,975 2,359,846 98,480,340 97,943,188 EXPENDITURES:

Current:

General government 17,288,849 - 67,212 17,356,061 14,880,371 Community development 395,225 - 23,876 419,101 5,135,427 Public safety 28,214,076 - 174,075 28,388,151 27,821,553 Public works 17,218,908 2,446,021 530,564 20,195,493 11,925,095 Library 3,800,511 - - 3,800,511 3,482,413
Parks, recreation and culture 9,980,942 - 346,911 10,327,853 9,190,122 Capital outlay 20,610,886 6,421,814 - 27,032,700 7,603,439 Debt service: -
Principal retirement 615,793 1,995,000 - 2,610,793 699,446 Interest and fiscal charges 125,717 922,023 - 1,047,740 969,253 Total expenditures 98,250,907 8,867,835 4,059,661 111,178,403 81,707,119

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (2,889,932) (8,108,316) (1,699,815) (12,698,063) 16,236,069 OTHER FINANCING SOURCES (USES):

Transfers in 505,226 970,901 2,915,000 4,391,127 2,448,161 Transfers out (3,885,901) (505,226) - (4,391,127) (2,448,161) Proceeds from sale of assets 303,401 - 303,401 - -
Issuance of lease liabilities 314,626 - 314,626 - 1,140,385 Issuance of subscription liabilities 506,936 - 506,936 - 286,013 Issuance of finance purchase 1,411,537 - 1,411,537 - -
Total other financing sources (uses) (844,175) 970,901 2,409,774 2,536,500 1,426,398 NET CHANGES IN FUND BALANCES (3,734,107) (7,137,415) 709,959 (10,161,563) 17,662,467 FUND BALANCES:

Beginning of year, as previously reported 155,757,029 14,842,099 - 170,599,128 152,936,661 Change in the financial reporting entity
(nonmajor fund to major) 8,289,681 - (8,289,681) - -
Beginning of year, as restated (Note 18) 155,757,029 8,289,681 6,552,418 170,599,128 152,936,661 End of year $ 1,152,266 152,022,922 $ 7,262,377 $ 160,437,565 $ 170,599,128 $ Statement of Revenues, Expenditures, and Changes in Fund Balances City of Commerce
Total Governmental Funds
(with comparative information for the prior year)
For the Year Ended June 30, 2025
Governmental Funds
Major Funds
See accompanying Notes to the Basic Financial Statements. 31 Net change in fund balances - total governmental funds: $ (10,161,563) Amounts reported for governmental activities in the Statement of Activities are different because:
$ 27,032,700
22,816,416 (4,216,284)
1,490,587
(500,709)
58,496
(1,773,403)
Principal repayments of long-term debt $ 2,610,793
Interest accrual on loans payables (38,655)
Amortization of bond premium 60,234
Issuance of lease liabilities (314,626)
Issuance of subscription liabilities (506,936)
Issuance of finance purchase 399,273 (1,411,537)
4,036,137
Change in net position of governmental activities $ 16,365,234 Depreciation and amortization
Unavailable revenue is not recognized as revenue in the governmental funds since the revenue is not available to fund expenditures of the current year.

Proceeds from long-term debt provided current financial resources to governmental funds, but issuing debt increased long-term liabilities in the Government-Wide Statement of Net Position. Repayment of long-term debt principal was an expenditure in the governmental funds, but the repayment reduced long-term liabilities in the Government-Wide Statement of Net Position.

Compensated absences were reported in the Government-Wide Statement of Activities, but they do not require the use of current financial resources. Therefore, compensated absences were not reported as liabilities in the governmental funds.

Other postemployment benefits and pension expenses were reported in the Government-Wide Statement of Activities, but it did not require the use of current financial resources. Therefore, the changes in other postemployment benefits liability and net pension liabilities were not reported as an expenditure or credit in the governmental funds.

OPEB credit net of contribution made after measurement date reported in deferred outflows of resources in the Government-Wide Statement of Net Position but reported as OPEB expenditures in the governmental funds.

Pension expense net of contribution made after measurement date reported in deferred outflows of resources in the Government-Wide Statement of Net Position but reported as pension expenditures in the governmental funds.

Certain claims expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds.

Capital outlay
City of Commerce
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities For the Year Ended June 30, 2025
Acquisition of capital assets was reported as expenditures in the governmental funds. However, in the Government-Wide Statement of Activities, the cost of those assets was allocated over the estimated useful lives as depreciation expense. The following was the amount of capital assets recorded in the current period:

See accompanying Notes to the Basic Financial Statements. 32 PROPRIETARY FUND FINANCIAL STATEMENTS
33 This page intentionally left blank.
34 2024
Transit CNG/LNG Water 2025 (as restated)
ASSETS
Current assets:

Cash and investments 6,975 $ 989,758 $ 3,773,986 $ 4,770,719 $ 3,349,214 $ Receivables:

Accounts - 355,834 - 355,834 370,644
Interest - - - -
Lease receivable, due within one year - - 752,783 752,783 740,946 Due from other governments 324,994 - - 324,994 650,469
Due from Successor Agency - - - - 457,285
Total current assets 1,345,592 331,969 4,526,769 6,204,330 5,568,558 Noncurrent assets:

Lease receivable, due in more than one year - - 5,405,669 5,405,669 6,158,452 Capital assets:

Nondepreciable 2,421,399 334,099 - 2,755,498 2,755,498
Depreciable, net 10,301,437 2,386,447 251,732 12,939,616 14,466,704 Amortizable, net - - 426,641 426,641 457,115
Total noncurrent assets 2,720,546 12,722,836 6,084,042 21,527,424 23,837,769 Total assets 4,066,138 13,054,805 10,610,811 27,731,754 29,406,327

DEFERRED OUTFLOWS OF RESOURCES
Pension related 969,481 - - 969,481 2,382,051
OPEB related 705,070 - - 705,070 855,316
Total deferred outflows of resources 1,674,551 - - 1,674,551 3,237,367

LIABILITIES
Current liabilities:

Accounts payable 339,549 201,984 1,164 542,697 409,696
Salaries and benefits payable 245,883 - 245,883 - 165,129 Due to other funds 7,125,112 - 7,125,112 - 6,804,311
Compensated absences, due within one year 367,172 - - 367,172 259,547 Claims payable, due within one year 16,157 - - 16,157 21,657 Total current liabilities 8,093,873 201,984 1,164 8,297,021 7,660,340 Noncurrent liabilities:

Compensated absences, due in more than one year 617,953 - 617,953 - 999,918 Claims payable, due in more than one year 56,626 - 56,626 - 44,022 Net pension liability 3,131,887 - 3,131,887 - 3,975,999 Net OPEB liability 14,980,709 - 14,980,709 - 14,976,458 Total noncurrent liabilities 18,787,175 - 18,787,175 - 19,996,397 Total liabilities 26,881,048 201,984 27,084,196 1,164 27,656,737

DEFERRED INFLOWS OF RESOURCES
Pension related 264,510 - 264,510 - 168,677
OPEB related 1,842,825 - 1,842,825 - 1,573,154
Lease related - 5,979,058 - 5,979,058 6,750,550
Total deferred inflows of resources 2,107,335 5,979,058 - 8,086,393 8,492,381

NET POSITION
Investment in capital assets 12,722,836 2,720,546 678,373 16,121,755 17,679,317 Unrestricted (deficit) (26,981,863) 1,143,608 3,952,216 (21,886,039) (21,184,741) Total net position (deficit) $ 3,864,154 (14,259,027) $ 4,630,589 $ (5,764,284) $ (3,505,424) $ Business-Type Activities - Enterprise Funds Total
City of Commerce
Statement of Net Position
Proprietary Funds
June 30, 2025
(with comparative information for the prior year)
See accompanying Notes to the Basic Financial Statements. 35 2024
Transit CNG/LNG Water 2025 (as restated)
OPERATING REVENUES:

Charges for services 50,070 $ 2,727,409 $ - $ 2,777,479 $ 2,895,747 $ Intergovernmental revenue 7,315,494 - - 7,315,494 6,874,935 Leased water rights - - 771,492 771,492 771,492
Total operating revenues 2,727,409 7,365,564 771,492 10,864,465 10,542,174 OPERATING EXPENSES:

General and administrative 7,570,938 2,872 19,499 7,593,309 7,539,483 Cost of sales and service 1,400,680 2,807,619 - 4,208,299 4,901,296 Depreciation and amortization 1,402,993 92,291 100,213 1,595,497 1,610,261 Total operating expenses 2,902,782 10,374,611 119,712 13,397,105 14,051,040 OPERATING INCOME (LOSS) (175,373) (3,009,047) 651,780 (2,532,640) (3,508,866) NONOPERATING REVENUES:

Interest income - 27,541 208,304 235,845 156,062
Total nonoperating revenues 27,541 - 208,304 235,845 156,062

INCOME (LOSS) BEFORE
CONTRIBUTIONS (147,832) (3,009,047) 860,084 (2,296,795) (3,352,804) CONTRIBUTIONS:

Capital contributions 37,935 - - 37,935 -
Total contributions - 37,935 - 37,935 -
CHANGES IN NET POSITION (147,832) (2,971,112) 860,084 (2,258,860) (3,352,804) NET POSITION (DEFICIT):

Beginning of year, as previously reported (10,698,819) 4,011,986 3,770,505 (2,916,328) 436,476 , GASB 101 implementation (589,096) - (589,096) - (589,096) Beginning of year, as restated (Note 18) (11,287,915) 4,011,986 3,770,505 (3,505,424) (152,620) End of year $ 3,864,154 (14,259,027) $ 4,630,589 $ (5,764,284) $ (3,505,424) $ Business-Type Activities - Enterprise Funds
(with comparative information for the prior year)
City of Commerce
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
For the Year Ended June 30, 2025
Total
See accompanying Notes to the Basic Financial Statements. 36 2024
Transit CNG/LNG Water 2025 (as restated)
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers and users 7,365,564 $ 2,742,219 $ 1,512,438 $ 11,620,221 $ 11,288,593 $ Cash payments to suppliers for goods and services (1,433,611) (2,742,266) (790,991) (4,966,868) (6,432,215) Cash payments to employees for services (6,571,254) - - (6,571,254) (5,969,780) Net cash provided by (used in) operating activities (47) (639,301) 721,447 82,099 (1,113,402)

CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:

Payment from other funds 646,276 - 457,285 1,103,561 1,816,518 Payment to other funds - - - - (3,762,314)
Net cash provided by (used in)
noncapital financing activities - 646,276 457,285 1,103,561 (1,945,796) CASH FLOWS FROM INVESTING ACTIVITIES:

Interest received on investments 27,541 - 208,304 156,062 235,845 Net cash provided by investing activities 27,541 - 208,304 235,845 156,062 Net change in cash and cash equivalents 27,494 6,975 1,387,036 1,421,505 (2,903,136) CASH AND CASH EQUIVALENTS:

Beginning of year - 962,264 2,386,950 6,252,350 3,349,214 End of year $ 989,758 6,975 $ 3,773,986 $ 4,770,719 $ 3,349,214 $

RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES:

Operating income (loss) (3,009,047) $ (175,373) $ 651,780 $ (2,532,640) $ (3,508,866) $ Adjustments to reconcile operating loss to net cash
provided by (used in) operating activities:

Depreciation and amortization expenses 1,402,993 92,291 100,213 1,595,497 1,610,261 (Increase) decrease in:

Accounts receivable - 14,810 - 14,810 17,124
Lease receivable - - 740,946 740,946 729,295
Deferred outflows of resources - pensions 1,412,570 - - 1,412,570 336,719 Deferred outflows of resources - OPEB 150,244 - - 150,244 288,126 Increase (decrease) in:

Accounts payable 64,776 68,225 - 133,001 (176,006)
Accrued payroll 80,754 - - 80,754 3,339
Compensated absences (274,340) - - (274,340) 41,406
Claims payable 7,104 - - 7,104 (45,583)
Net pension liability (844,110) - - (844,110) 666,188
Net other postemployment benefits liability 4,251 - - 4,251 526,067 Deferred inflows of resources - pensions 1,674,148 - - 1,674,148 1,219,873 Deferred inflows of resources - OPEB (1,308,644) - - (1,308,644) (2,049,853) Deferred inflows of resources - leases - - (771,492) (771,492) (771,492) Total adjustments 2,369,746 175,326 69,667 2,614,739 2,395,464 Net cash provided by (used in) operating activities $ (47) (639,301) $ 721,447 $ 82,099 $ (1,113,402) $ Business-Type Activities - Enterprise Funds
(with comparative information for the prior year)
City of Commerce
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2025
Total
See accompanying Notes to the Basic Financial Statements. 37 This page intentionally left blank.
38 FIDUCIARY FUNDS FINANCIAL STATEMENTS
39 This page intentionally left blank.
40 Private Purpose 2024
Trust Funds 2025 (as restated)
ASSETS
Current assets:

Cash and investments $ 15,243,452 $ 15,243,452 $ 18,891,523 Receivables:

Accounts 10,915 10,915 7,702
Loans, net - - -
Lease receivable, due within one year 23,947 23,947 9,618 Total current assets 15,278,314 15,278,314 18,908,843
Noncurrent assets:

Restricted cash and investments with fiscal agents 988 988 9,946 Lease receivable, due in more than one year 963,295 963,295 987,242 Property held for resale 44,407,092 44,407,092 44,407,092 Total noncurrent assets 45,371,375 45,371,375 45,404,280 Total assets 60,649,689 60,649,689 64,313,123

DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on refunding 1,691,341 1,691,341 2,405,260 Total deferred outflows of resources 1,691,341 1,691,341 2,405,260

LIABILITIES
Current liabilities:

Accounts payable 2,324,945 2,324,945 2,297,169
Salaries and benefits payable 1,438 1,438 1,297
Long-term debt, due within one year 7,898,181 7,898,181 8,738,281 Total current liabilities 10,224,564 10,224,564 11,036,747 Noncurrent liabilities:

Due to City of Commerce - 3,014,695 -
Long-term debt, due in more than one year 24,955,045 24,955,045 32,853,226 Total noncurrent liabilities 24,955,045 24,955,045 35,867,921 Total liabilities 35,179,609 35,179,609 46,904,668

DEFERRED INFLOWS OF RESOURCES
Lease related 811,777 811,777 865,896
Total deferred inflows of resources 811,777 811,777 865,896

NET POSITION
Held in trust for Successor Agency $ 26,349,644 26,349,644 $ 18,947,819 $ Total
City of Commerce
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2025
(with comparative information for the prior year)
See accompanying Notes to the Basic Financial Statements. 41 Private Purpose 2024
Trust Funds 2025 (as restated)
ADDITIONS:

Redevelopment property tax trust fund $ 8,296,772 $ 8,296,772 $ 10,081,187 Investment income 570,776 570,776 247,567
Rental income 428,497 428,497 698,779
Miscellaneous income 14,209 14,209 442,982
Total additions 9,310,254 9,310,254 11,470,515
DEDUCTIONS:

Administrative expenses 346,135 346,135 572,951
Interest and fiscal charges 1,562,294 1,562,294 2,208,280 Total deductions 1,908,429 1,908,429 2,781,231
CHANGES IN NET POSITION 7,401,825 7,401,825 8,689,284
NET POSITION:

Beginning of year 18,947,819 18,947,819 10,258,535
End of year $ 26,349,644 26,349,644 $ 18,947,819 $
Total
City of Commerce
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2025
(with comparative information for the prior year)
See accompanying Notes to the Basic Financial Statements. 42 43

NOTES TO THE BASIC

FINANCIAL STATEMENTS
44 This page intentionally left blank.

City of Commerce
Index to the Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
45 Page
Note 1 – Summary of Significant Accounting Policies ........................................................................................... 47 A. Financial Reporting Entity .............................................................................................................................. 47 B. Basis of Accounting and Measurement Focus................................................................................................ 48 C. Property Taxes ................................................................................................................................................ 50 D. Cash and Investments and Cash Equivalents .................................................................................................. 50 E. Fair Value Measurements ............................................................................................................................... 50 F. Prepaid Items .................................................................................................................................................. 51 G. Lease Receivable ............................................................................................................................................ 51 H. Interfund Transactions .................................................................................................................................... 51 I. Property Held for Resale ................................................................................................................................ 52 J. Capital Assets ................................................................................................................................................. 52 K. Deferred Outflows/Inflows of Resources ....................................................................................................... 53 L. Unearned and Unavailable Revenue ............................................................................................................... 53 M. Long-Term Liabilities..................................................................................................................................... 53 N. Lease Liabilities .............................................................................................................................................. 54 O. Subscription Based Information Technology Arrangements (“SBITA”) Liabilities ...................................... 54 P. Compensated Absences .................................................................................................................................. 55 Q. Self-Insurance Programs................................................................................................................................. 55 R. Pensions .......................................................................................................................................................... 55 S. Other Postemployment Benefits ..................................................................................................................... 56 T. Net Position .................................................................................................................................................... 56 U. Fund Balances ................................................................................................................................................ 57 V. Use of Estimates ............................................................................................................................................. 58 W. Implementation of New GASB Pronouncements ........................................................................................... 58 Note 2 – Cash and Investments ................................................................................................................................ 58 A. Demand Deposits ............................................................................................................................................ 59 B. Investments Authorized by Debt Agreements ................................................................................................ 59 C. Fair Value Measurement Disclosures ............................................................................................................. 60 D. Risk Disclosures ............................................................................................................................................. 60 E. Investment in Local Agency Investment Fund (“LAIF”) ............................................................................... 62 F. Investment in Public Agency Retirement Services (“PARS”) ....................................................................... 62 G. Restricted Cash and Investments Held by Fiscal Agents ............................................................................... 62 Note 3 – Loans Receivable ........................................................................................................................................ 62 Note 4 – Lease Receivable and Lease-Related Deferred Inflows of Resources .................................................... 63 A. Governmental Activities ................................................................................................................................. 63 B. Business-Type Activities ................................................................................................................................ 63 C. Fiduciary Activities ........................................................................................................................................ 64 Note 5 – Interfund Transactions .............................................................................................................................. 65 A. Due From/To Other Funds ............................................................................................................................. 65 B. Transfers ......................................................................................................................................................... 65 City of Commerce
Index to the Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2025
46 Page
Note 6 – Capital Assets .............................................................................................................................................. 66 A. Governmental Activities ................................................................................................................................. 66 B. Business-Type Activities ................................................................................................................................ 67 Note 7 – Long-Term Liabilities ................................................................................................................................ 68 A. Governmental Activities ................................................................................................................................. 68 B. Business-Type Activities ................................................................................................................................ 70 C. Fiduciary Activities ........................................................................................................................................ 71 Note 8 – Self Insurance Programs ............................................................................................................................ 73 A. General Liability ............................................................................................................................................. 73 B. Workers’ Compensation ................................................................................................................................. 75 Note 9 – Defined Benefit Pension Plans ................................................................................................................... 75 A. General Information about the Pension Plan .................................................................................................. 75 B. Net Pension Liabilities.................................................................................................................................... 77 C. Changes in the Net Pension Liability ............................................................................................................. 79 D. Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions ............................................................................................................ 80 Note 10 – Other Postemployment Benefits (“OPEB”) Plan ................................................................................... 81 A. General Information about the OPEB Plan .................................................................................................... 81 B. Net OPEB Liability ........................................................................................................................................ 81 C. Changes in the Net OPEB Liability ................................................................................................................ 83 D. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB ................................................................................................................ 84 Note 11 – Deferred Compensation Plan ................................................................................................................... 84 Note 12 – Net Investments in Capital Assets ........................................................................................................... 85 Note 13 – Classification of Fund Balances ............................................................................................................... 85 Note 14 – Tax Abatement .......................................................................................................................................... 86 Note 15 – Commitments and Contingencies ............................................................................................................ 86 Note 16 – Individual Fund Disclosure ...................................................................................................................... 86 Note 17 – Certain Risk Disclosures .......................................................................................................................... 86 Note 18 – Restatement of Beginning Net Position
and Fund Balances .............................................................................................................................. 87 Note 19 – Subsequent Event ..................................................................................................................................... 87 City of Commerce
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
47 Note 1 – Summary of Significant Accounting Policies
The basic financial statements of the City of Commerce, California, (the “City”) have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) as applied to governmental agencies. The Governmental Accounting Standards Board (“GASB”) is the accepted standard setting body for establishing governmental accounting and financial reporting principles.

The basic financial statements include certain prior-year summarized comparative information in total but not at the level of detail for a presentation and note disclosures in accordance with U.S. GAAP. Accordingly, such information should be read in conjunction with the government’s financial statements for the year ended June 30, 2024, from which the summarized information was derived.

The following is a summary of the City’s significant policies:

A. Financial Reporting Entity
The City was incorporated in 1960, under the laws of the State of California and enjoys all the rights and privileges applicable to a general-law city. It is governed by an elected five-member council. As required by U.S.

GAAP these financial statements present the City (the primary government and its component units). The component units discussed below are included in the reporting entity because of their operational or financial relationships with the City.

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

Blended Component Units:

Management determined that the following entities should be reported as blended component units based on the criteria above. Although the following entities are legally separate from the City, they have been “blended” as though they are part of the City because the component units’ governing bodies are substantially the same as the City’s and there is a financial benefit or burden relationship between the City and the component units; and management of the City has operational responsibilities for the component units; and/or the component units provide services entirely, or almost entirely, to the City or otherwise exclusively, or almost exclusively, benefits the City, even though they do not provide services directly to it.

The City of Commerce Joint Powers Financing Authority (“JPFA”) was formed January 1, 1988, to create a joint exercise of powers authority between the City and the Community Development Commission of the City of Commerce (“the Commission”). The City Council of the City is the governing board. Management of the primary government has operational responsibility for the blended component unit. The JPFA does not issue separate financial statements.

City of Commerce
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
48 Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus
The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for by providing a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. City 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.

Government-Wide Financial Statements
The government-wide financial statements are presented on an “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all of the City’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources, including capital assets, as well as infrastructure assets, and long-term liabilities, are included in the accompanying Statement of Net Position. The Statement of Activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. Fiduciary activities of the City are not included in these statements.

Certain types of transactions are reported as program revenues for the City in three categories:
 Charges for services
 Operating grants and contributions
 Capital grants and contributions
Certain eliminations have been made in regards to interfund activities, payables and receivables. All internal balances in the statement of net position have been eliminated. In the statement of activities, internal service fund transactions have been included in the governmental activities. The following interfund activities have been eliminated:
 Due from and to other funds, which are short-term loans within the primary government.  Except between Governmental and Business-Type Activities, transfers in and out, which are flows of assets between funds without the requirement for repayment.

Governmental Fund Financial Statements
All governmental funds are accounted for on a spending, or “current financial resources” measurement focus and the modified accrual basis of accounting. Accordingly, only current assets, current liabilities, and deferred inflows of resources are included on the balance sheet. The statement of revenues, expenditures and changes in fund balances presents increases (revenue and other financing sources) and decreases (expenditures and other financing uses) in fund balances. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period.

Revenues are recorded when received in cash, except those revenues subject to accrual (generally 60 days after year-end) which are recognized when measurable and available. The primary revenue sources that have been treated as susceptible to accrual by the City are property taxes, intergovernmental revenues and other taxes.

Business license fees are recorded as received. Expenditures are recorded in the accounting period in which the related fund liability is incurred. An exception to this general rule is principal and interest on long-term debt which is recognized when due.

City of Commerce
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
49 Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Governmental Fund Financial Statements (Continued)
Reconciliations of the fund financial statements to the government-wide financial statements are provided to explain the differences.

The City reports the following major Governmental Funds:

General Fund – The primary fund of the City is used to account for all revenue and expenditures of the City not accounted for and reported in another fund and not legally restricted as to use.

General City Capital Projects Fund - This fund is used to account for the bond proceeds, interest and other funding that will be used for development, planning and construction and land acquisition within the City.

Proprietary Fund Financial Statements
Proprietary Fund Financial Statements include a Statement of Net Position, a Statement of Revenues, Expenses and Changes in Net Position, and a Statement of Cash Flows for each major Proprietary Fund.

Proprietary funds are accounted for using the "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all assets, deferred outflows of resources, liabilities (whether current or noncurrent), and deferred inflows of resources are included on the Statement of Net Position. The Statement of Revenues, Expenses and Changes in Fund Net Position presents increases (revenues) and decreases (expenses) in total Net Position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. In these funds, receivables have been recorded as revenue and provisions have been made for uncollectible amounts.

Operating revenues in the proprietary funds are those revenues that are generated from the primary operations of the fund. All other revenues are reported as non-operating revenues. Operating expenses are those expenses that are essential to the primary operations of the fund. All other expenses are reported as non-operating expenses.

The City reports the following major Proprietary Funds:

Transit Enterprise Fund – This fund is used to account for the activities necessary to provide free transportation service to the citizens and the industrial community.

Compressed Natural Gas (“CNG”) /Liquefied Natural Gas (“LNG”) Enterprise Fund – This fund is used to account for the City’s CNG/LNG operations, with revenues primarily generated from fueling royalties associated with public use.

Water Enterprise Fund – This fund is used to account for the right-to-use of the City’s water facility and infrastructure that is provide to a portion of the City’s residents.

City of Commerce
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
50 Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Fiduciary Fund Financial Statements
Fiduciary fund financial statements include a Statement of Net Position and a Statement of Changes in Fiduciary Net Position. The City’s fiduciary funds represent custodial funds and private purpose trust funds. Both custodial funds and the private purpose trust funds are accounted for on the full accrual basis of accounting where the assets associated with the activity are controlled by the City and the assets are not derived 1) solely from the government’s own-source revenues or 2) from government-mandated nonexchange transactions or voluntary nonexchange transactions.

The City reports the following Fiduciary Funds:

Private Purpose Trust Funds – These funds are used to account for the activities of the Successor Agency of the former Community Development Commission.

C. Property Taxes
Property tax revenue is recognized in the fiscal year for which the taxes have been levied providing they become available. Available means due, or past due and receivable within the current period and collected within the current period or expected to be collected soon enough thereafter (not to exceed 60 days) to be used to pay liabilities in the current period.

Under California law, property taxes are assessed and collected by the counties at up to 1% of assessed value, plus other increases approved by the voters. The property taxes go into a pool, and are then allocated to the cities based on complex formulas.

The property tax calendar is as follows:

Lien date January 1
Levy date July 1
Due dates First Installment - November 1
Second Installment - February 1
Delinquent Date First Installment - December 11
Second Installment - April 11
D. Cash and Investments and Cash Equivalents
The City’s cash and cash equivalents are comprised of cash on hand, demand deposits, and short-term investments with original maturity of three months or less from the date of acquisition. All cash and investments of proprietary funds are held in the City’s investment pool. These cash pools have the general characteristics of a demand deposit account, therefore, all cash and investments in the proprietary funds are considered cash and cash equivalents for statement of cash flows purposes.

E. Fair Value Measurements
U.S. GAAP defines fair value, establishes a framework for measuring fair value and establishes disclosures about fair value measurement. Investments, unless otherwise specified, recorded at fair value in the financial statements, are categorized based upon the level of judgement associated with the inputs used to measure their fair value.

City of Commerce
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
51 Note 1 – Summary of Significant Accounting Policies (Continued) E. Fair Value Measurements (Continued)
The three levels of the fair value measurement hierarchy are described below:
 Level 1 – Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date.
 Level 2 – Inputs, other than quoted prices included in Level 1, that are observable for the assets or liabilities through corroboration with market date at the measurement date.  Level 3 – Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the assets or liabilities at the measurement date.

F. Prepaid Items
Prepaid items are payments made to vendors for services that will benefit periods beyond the fiscal year ended.

The City uses the consumption method to account for prepaid items.

G. Lease Receivable
The City is a lessor for leases of land, buildings, and infrastructure and recognizes lease receivables and deferred inflows of resources in the financial statements. Variable payments based on future performance or usage of the underlying asset are not included in the measurement of the lease receivable.

At the commencement of a lease, the lease receivable is measured at the present value of payments expected to be received during the lease term. The City established a threshold of $25,000 for lease receivables. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflows of resources are initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflows of resources are recognized as revenue over the life of the lease term in a systematic and rational method.

Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts.  The City uses the incremental borrowing rate (IBR) provided by the financial institution during implementation for existing leases or the current rate at the time a new lease is executed or modified.  The lease term includes the noncancelable period of the lease plus any option periods that are likely to be exercised.
 Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee.

The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable.

H. Interfund Transactions
Transactions between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as “due from/to other funds” (i.e., current portion of interfund loans). These are typically routine and temporary cash flow assistance from the General Fund to other funds in advance of receiving grant funds or other types of revenue.

City of Commerce
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
52 Note 1 – Summary of Significant Accounting Policies (Continued) H. Interfund Transactions (Continued)
Transactions which move resources from a fund receiving revenue to the fund through which the resources are expended are recorded as transfers.

I. Property Held for Resale
Property held for resale is reported at the lower of cost or estimated net realizable value. Estimated net realizable value is determined upon entering into a contact for sale.

J. Capital Assets
In the Government-Wide Financial Statements, capital assets are recorded at cost where historical records are available and at an estimated original cost where no historical records exist. Donated capital assets are valued at their acquisition value. Capital assets, which include land, buildings, improvements other than buildings, machinery and equipment, and infrastructure assets. General infrastructure assets consist of certain improvements including roads, streets, sidewalks, medians, and storm drains. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Capital asset purchases in excess of $25,000 to $250,000, depending on the type of asset, are capitalized if they have an expected useful life of one year or more. Capital assets are depreciated using the straight-line method over the assets estimated useful live.

The governmental fund financial statements do not present capital assets. Instead, capital assets purchases are reported as capital outlay expenditures or other functional expenditures such as public works. As such, capital assets are shown as a reconciling item in the Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position.

The following schedule summarizes the capital asset capitalization and depreciation policy:

Asset Type Capitalization Threshold Depreciation in Years Buildings $ 250,000 10-40 years
Improvements other than buildings 200,000 20-30 years
Infrastructure 100,000 20-40 years
Machinery and equipment 25,000 5-13 years
Right to use asset 25,000 Based on contract term
Right-of-Use Lease Assets
Lease assets are recorded at the amount of the initial measurement of the lease liabilities and adjusted by any lease payments made to the lessor at or before the commencement of the lease term, less any lease incentives received at or before the commencement of the lease term along with any initial direct costs that are ancillary charges necessary to place the lease assets into service. Lease assets are amortized using the straight-line method over the shorter of the lease term or the useful life of the underlying asset, unless the lease contains a purchase option that the City has determined is reasonably certain of being exercised. In this case, the lease asset is amortized over the useful life of the underlying asset.

City of Commerce
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
53 Note 1 – Summary of Significant Accounting Policies (Continued) J. Capital Assets (Continued)
Right-of-Use Subscription Assets
Subscription assets are recorded at the amount of the initial measurement of the subscription-based information technology arrangements (“SBITA”) liabilities and adjusted by any subscription payments to the SBITA vendor at or before the commencement of the subscription term, less any incentives received from the SBITA vendor at or before the commencement of the subscription term along with subscription implementation costs. Subscription assets are amortized over the shorter of the subscription term or the useful life of the underlying information technology assets.

K. Deferred Outflows/Inflows of Resources
The financial statements report separate sections for deferred outflows of resources, and deferred inflows of resources, when applicable.

Deferred Outflows of Resources represent a consumption of net assets that applies to future periods.

Deferred Inflows of Resources represent an acquisition of net assets that applies to future period.

L. Unearned and Unavailable Revenue
Unearned revenue is reported for transactions for which revenue has not yet been earned. Typical transactions recorded as unearned revenues in the government-wide and fund financial statements are grant revenues received in advance.

In the governmental fund financial statements, unavailable revenue is reported when transactions have not yet met the revenue recognition criteria based on the modified accrual basis of accounting. The City reports unavailable revenue when an asset is reported in governmental fund financial statements but the revenue is not collected within the availability period (within 60 days of year-end).

M. Long-Term Liabilities
Financial Statements, long-term debt and other long-term obligations are reported as liabilities in the appropriate activities. Bonds payable are reported net of the applicable bond premium or discount. Debt issuance costs except for any portion related to prepaid insurance are recognized as expense in the period incurred. Premiums or discounts not considered as part of the reacquisition price are amortized over the life of the bond.

The governmental fund financial statements do not present long-term debt and other financed obligations. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses.

Issuances costs are reported as debt service expenditures. Principal payments and reductions in the obligation are reported as debt service expenditures. As such, long-term debt and other financed obligations are shown as reconciling items in the Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position.

City of Commerce
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
54 Note 1 – Summary of Significant Accounting Policies (Continued) N. Lease Liabilities
The City recognizes lease liabilities with an initial, individual value of $25,000 or more with a lease term greater than one year in the government-wide and proprietary fund financial statements. Variable payments based on future performance of the lessee or usage of the underlying asset are not included in the measurement of the lease liability.

At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made.

Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments.  The City uses incremental borrowing rate provided by the financial institution or the current rate at the time a new lease is executed.
 The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise.
 Lease payments included in the measurement of the lease payable is composed of fixed payments to the lessor.

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

O. Subscription Based Information Technology Arrangements (“SBITA”) Liabilities The City recognizes subscription liabilities with an initial, individual value of $25,000 or more with a subscription term greater than one year in the government-wide and proprietary fund financial statements.

Variable payments based on future performance of the City, usage of the underlying IT assets, or number of user seats are not included in the measurement of the subscription liability.

At the commencement of a subscription, the City initially measures the subscription liability at the present value of subscription payments expected to be made during the subscription term. Subsequently, the lease liability is reduced by the principal portion of subscription payments made.

Key estimates and judgments related to subscription liabilities include how the City determines (1) the discount rate it uses to discount the expected subscription payments to present value, (2) subscription term, and (3) subscription payments.
 The City uses the interest rate charged by the SBITA vendor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for subscription liabilities.
 The subscription term includes the noncancellable period of the SBITA. Subscription payments included in the measurement of the subscription liability are composed of fixed payments.

City of Commerce
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
55 Note 1 – Summary of Significant Accounting Policies (Continued) O. Subscription Based Information Technology Arrangements (“SBITA”) Liabilities (Continued) The City monitors changes in circumstances that would require a remeasurement of its SBITA and will remeasure any subscription asset or liability if certain changes occur that are expected to significantly affect the amount of the subscription liability.

P. Compensated Absences
It is the policy of the City to permit employees to accumulate earned but unused vacation leave and, in certain circumstances, sick leave benefits. A liability is recognized for leave that is attributable to services already rendered and that is more likely than not to be used for time off or otherwise paid or settled. The liability is measured using the employee’s pay rate as of the end of the reporting period and includes applicable salaryrelated payments. The liability for compensated absences is reported in the government-wide financial statements and is allocated between Governmental Activities and Business-Type Activities based on the employees to whom the liability relates. In governmental fund financial statements, expenditures are recognized only when payments come due. Proprietary funds recognize the liability as it is incurred.

Q. Self-Insurance Programs
The City's insurance program for general liability is administered through California Joint Powers Insurance Authority (CJPIA), which is described in Note 8 to the financial statements. The Authority is a public entity risk pool. Claims losses recorded in the Authority include both current claims and incurred but not reported claims (IBNR). Deposits to the Authority are recorded by the City as insurance expenditures in the General Fund when paid. These deposits are subject to retrospective adjustment. Favorable claims experience in prior years results in a refund of deposits from the Authority and such refunds, if any, are recorded as prepaid items in the General Fund since they will be used to offset future deposit requirements. Adverse claims experience in prior years results in the payment of additional deposits and such deposits, if any, are recorded as insurance expenditures when incurred.

The City is self-insured for workers' compensation for the first $1,000,000 per occurrence. Excess insurance is provided by Arch Insurance Company. These activities are accounted for in the General and Transit Funds. The funds accrue the estimated liability for claims when such amounts are reasonably determinable and where the liability is probable. See Note 8 for the estimated liability for such claims expected to be filed for incidents that occurred as of June 30, 2025.

R. Pensions
For purposes of measuring the aggregate 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.

General Fund and special revenue funds are typically used to liquidate pension liabilities for governmental funds.

City of Commerce
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
56 Note 1 – Summary of Significant Accounting Policies (Continued) R. Pensions (Continued)
The following timeframes are used for pension reporting:

Valuation Date June 30, 2023
Measurement Date June 30, 2024
Measurement Period July 1, 2023 to June 30, 2024
Gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time. The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense. The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized straight-line over 5 years. All other amounts are amortized straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period.

S. Other Postemployment Benefits
For purposes of measuring the net other postemployment benefits (“OPEB)” liability, 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 are recognized when due and payable in accordance with benefit terms. Investments are reported at fair value.

General Fund and special revenue funds are typically used to liquidate OPEB liabilities for governmental funds.

The following timeframes are used for OPEB reporting:

Valuation Date June 30, 2024
Measurement Date June 30, 2024
Measurement Period July 1, 2023 to June 30, 2024
Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time. The first amortized amounts are recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense. The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized straight-line over 5 years. All other amounts are amortized straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period.

T. Net Position
In the government-wide financial statements and proprietary fund financial statements, net position is classified as follows:

Net Investment in Capital Assets – This component of net position consist of capital assets, net of accumulated depreciation/amortization and reduced by outstanding balances of bonds, notes, and other debt that are attributable to the acquisition, construction, or improvement of those assets. Deferred outflows of resources and deferred inflows of resources that are attributable to the acquisition, construction, or improvement of those assets or related debt are included in this component of net position.

City of Commerce
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
57 Note 1 – Summary of Significant Accounting Policies (Continued) T. Net Position (Continued)
Restricted – This component of net position consist of restricted assets reduced by liabilities and deferred inflows of resources related to those assets. Assets are reported as restricted when constraints are placed on asset use either by external parties or by law through constitutional provision or enabling legislation.

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

When expenses are incurred for purposes for which both restricted and unrestricted components of net position are available, the City’s practice is to apply the restricted component of net position first, then use the unrestricted component of net position as needed.

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

Nonspendable – Nonspendable fund balances include amounts that cannot be spent because they are not in a spendable form, such as unrestricted loans receivable or prepaid items and land held for resale, or because resources legally or contractually must remain intact.

Restricted – Restricted fund balances are the portion of fund balance that have externally enforceable limitations on their usage through legislation or limitations imposed by creditors, grantor, laws and regulations of other governments or enabling legislation.

Committed – Committed fund balances are self-imposed limitations by the highest level of decision-making authority, namely the City Council, prior to the end of the reporting period. City Council adoption of a resolution is required to commit resources or to rescind the commitment.

Assigned – Assigned fund balances are limitations imposed by management based on the intended use of the funds. Modifications or rescissions of the constraints can be removed by the same type of action that limited the use of the funds. Assignment of resources can be done by the highest level of decision making or by a committee or official designated for that purpose. The delegation of authority has not yet been granted to persons or bodies other than City Council.

Unassigned – Unassigned fund balances represent the residual net resources in excess of the other classifications. The general fund is the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it is not appropriate to report a positive unassigned fund balance amount. However, in governmental funds other than general fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund.

It is the City’s policy that restricted resources will be applied first, followed in order of application by committed, assigned, and unassigned resources, in the absence of a formal policy adopted by the Council.

City of Commerce
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
58 Note 1 – Summary of Significant Accounting Policies (Continued) V. Use of Estimates
The preparation of the basic financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

W. Implementation of New GASB Pronouncements
GASB Statement No. 101 – In June 2022, the GASB issued Statement No. 101, Compensated Absences. The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. The requirements of this Statement are effective for fiscal years beginning after December 15, 2023, and all reporting periods thereafter. Implementation of this Statement resulted in a restatement of the beginning fund balance as of July 1, 2024, as presented in Note 18.

GASB Statement No. 102 – In December 2023, the GASB issued Statement No. 102, Certain Risk Disclosures.

The objective of this Statement is to provide users of government financial statements with information about risks related to a government’s vulnerabilities due to certain concentrations or constraints that is essential to their analyses for making decisions or assessing accountability. The requirements of this Statement are effective for fiscal years beginning after June 15, 2024, and all reporting periods thereafter. The City has evaluated its exposure to financial risk stemming from concentrations constraints. Management has determined that a concentration exists in the City's revenue, as disclosed in Note 17.

Note 2 – Cash and Investments
The City had the following cash and investments at June 30, 2025:

Fiduciary
Governmental Business-Type Fund Statement
Activities Activities of Net Position Total
Unrestricted assets:

Cash and investments 125,496,342 $ 4,770,719 $ 15,243,452 $ 145,510,513 $ Restricted assets:

Cash and investments 6,938,923 - - 6,938,923
Cash with fiscal agent 2,201 - 988 3,189
Total cash and investments $ 4,770,719 132,437,466 $ 15,244,440 $ 152,452,625 $ The City’s cash and investments at June 30, 2025 in more detail:

Cash on hand $ 3,212
Deposits with financial institutions 74,279,838
Investments 78,169,575
Total cash and investments $ 152,452,625
The City follows the practice of pooling cash and investments of all funds except for funds required to be held by outside fiscal agent under the provisions of bond indentures.

City of Commerce
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
59 Note 2 – Cash and Investments (Continued)
Interest income earned on pooled cash and investments is allocated quarterly to the funds based on the month-end cash and investment balances. Proceeds obtained from long-term debt issuances including construction, lease payment and reserve fund balances are held by the City or by fiscal agent on behalf of the City and invested in the City's name. Interest income on proceeds of debt is credited directly to the related fund, as defined by the Bond Indenture.

A. Demand Deposits
At June 30, 2025, the carrying amount of the City's demand deposits was $74,279,838 the bank balance was $75,182,593. The difference represents outstanding checks, deposits in transit, and other reconciling items.

Under provisions of the City's investment policy and in accordance with Section 53601 of the California Government Code, the City may invest in the types of investments listed in the table below. The table also identifies certain provisions intended to limit the City's exposure to interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City’s investment policy.

Authorized * Maximum * Maximum
by Investment * Maximum Percentage Investment in
Authorized Investment Type Policy Maturity of Portfolio One Issuer U.S. Treasury Obligations Yes 5 years None None
U.S. Agency Securities Yes 5 years None 40%
Banker's Acceptances Yes 180 days 40% 10%
Commercial Paper Yes 270 days 40% 10%
Certificates of Deposit Yes 5 years 30% 10%
Repurchase Agreements Yes 10 days None None
Medium-Term Notes Yes 5 years 30% 10%
Mutual Funds Yes N/A 20% None
Money Market Mutual Funds Yes N/A 20% None
Local Agency Investment Fund (LAIF) Yes N/A None None
* Based on state law requirements or investment policy requirements, whichever is more restrictive.

B. Investments Authorized by Debt Agreements
Investments of debt proceeds held by 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 following table identifies the investment types that are authorized for investments held by bond trustee. The table also identifies certain provisions of these debt agreements that address interest rate risk, and concentration of credit risk.

Maximum
Authorized Investment Type Maturity
U.S. Treasury Obligations None
U.S. Agency Securities None
Banker's Acceptances 360 days
Commercial Paper 270 days
Medium-Term Notes N/A
Money Market Mutual Funds None
Investment Agreements None
Non-negotiable Certificates of Deposit 360 days
City of Commerce
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
60 Note 2 – Cash and Investments (Continued)
C. Fair Value Measurement Disclosures
The following table presents the fair value measurement of investments on a recurring basis and the levels within GASB 72 fair value hierarchy in which the fair value measurements fall at June 30, 2025:

Significant
Other Observable
Investment Type Total Inputs (Level 1) Uncategorized
Local Agency Investment Fund $ 74,636,765 $ - $ 74,636,765 Held by PARS 115:

Money Market Funds 92,716 - 92,716
Mutual Funds 3,436,905 3,436,905 -
Held by fiscal agent:

Money market funds 3,189 - 3,189
Total investments $ 78,169,575 $ 3,436,905 $ 74,732,670 Measurement Input
D. Risk Disclosures
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment is, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer-term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.

The sensitivity of the fair values of the City's investments (including investments held by bond trustees) to market interest rate fluctuations is as follows:
1 Year
Investment Type Total or Less
Local Agency Investment Fund 74,636,765 $ 74,636,765 $
Held by PARS 115:

Money Market Funds 92,716 92,716
Mutual Funds 3,436,905 3,436,905
Held by fiscal agent:

Money Market Mutual Funds 3,189 3,189
Total investments $ 78,169,575 78,169,575 $
Remaining Maturity
City of Commerce
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
61 Note 2 – Cash and Investments (Continued)
D. Risk Disclosures (Continued)
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code or the City's investment policy, or debt agreements, and the actual rating as of fiscal year end for each investment type.

Investment Type Total AAA Not Rated
Local Agency Investment Fund $ 74,636,765 $ - $ 74,636,765 Held by PARS 115:

Money Market Funds 92,716 - 92,716
Mutual Funds 3,436,905 - 3,436,905
Held by fiscal agent:

Money market funds 3,189 3,189 -
Total investments $ 78,169,575 $ 3,189 $ 78,166,386
Rating as of Year End
Concentration of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code, except for U.S. Agency Securities (limited to a face value of $10 million) and Commercial Paper and Medium-Term Notes (limited to a face value of $3 million).

Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits.

The City Treasurer may waive the collateral requirement for deposits that are fully insured up to $250,000 by the FDIC. The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The fair value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.

For investments identified herein as held by bond trustee, the City's designee selects the investment under the terms of the applicable trust agreement, acquires the investment, and delivers to the Trustee the investment on behalf of the reporting government.

City of Commerce
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
62 Note 2 – Cash and Investments (Continued)
E. Investment in Local Agency Investment Fund (“LAIF”)
The City is a participant in LAIF, which is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. As of June 30, 2025, the City had $74,636,765 invested in LAIF. LAIF is reported at amortized cost, which approximates fair value.

F. Investment held with Public Agency Retirement Services (“PARS”) The City established an Internal Revenue Service Section 115 irrevocable trust with the PARS for the purposes of funding pension obligations. PARS is not rated and is not registered with the Securities Exchange Commission.

The City selects the investment strategy and the pool is managed by the PARS Board. As of June 30, 2025, the City had $3,529,621 invested in PARS. PARS is reported at fair value for investments in mutual funds and at amortized cost for investments in money market funds.

G. Restricted Cash and Investments Held by Fiscal Agents The City maintains certain cash and investment accounts with fiscal agents (trustees) in accordance with bond indenture agreements related to outstanding debt obligations. Amounts held by fiscal agents are restricted for specific debt service purposes and are not available for general governmental operations. Investments held by fiscal agents consist primarily of money market funds and are reported at amortized cost or fair value, as applicable, in accordance with the City’s investment policy and applicable accounting standards. As of June 30, 2025, the balance of restricted cash and investments held by fiscal agents was $3,189.

In fiscal year 2023, the City sold a parcel of land formerly owned by the Successor Agency pursuant to the LongRange Property Management Plan approved by the California Department of Finance. Net proceeds of $5,143,903 from this sale are restricted for the sole purpose of constructing a new City Public Safety/City Hall Facility. This restriction is in accordance with the dissolution requirements of the former redevelopment agency and enabling City Council actions. These proceeds are recorded as restricted cash in the City’s financial statements and are not available for general governmental purposes. As of June 30, 2025, the restricted cash balance related to this transaction was $3,342,193.

In fiscal year 2024, the City established a separate bank account to account for retention amounts withheld related to the Bandini Learning Center Improvement Project. The account was opened for the sole purpose of segregating and tracking construction retention payable to contractors in accordance with the related construction agreements.

Amounts held in this account represent retention withheld from progress payments and are restricted for payment upon satisfactory completion of contractual requirements. These funds are recorded as restricted cash in the City’s financial statements, as they are legally restricted for specific contractual obligations and are not available for general governmental purposes. As of June 30, 2025, the restricted cash balance related to construction retention for the Bandini Learning Center Improvement Project was $67,109.

Note 3 – Loans Receivable
The former Redevelopment Agency (“RDA”) of the City operated a housing First Time Homebuyer (“FTH”) loan program, which provides loans to moderated-low income borrowers who meet certain qualifications for the purpose of purchasing a home. Due to the dissolution of the RDA, many of these loans became uncollectable and the loan balances have been reduced to reflect forgiveness. The outstanding balance of the loans and interest on the loans at June 30, 2025 was $207,783 and $296,554, respectively.

City of Commerce
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
63 Note 3 – Loans Receivable (Continued)
In July 2019, the City entered into a Purchase and Sale Agreement between City Ventures Homebuilding, LLC (“City Ventures”) and the City to sell the properties that included the old North Annex, the Provisor Building, and the existing Transportation Building. Shortly thereafter, a three-phased housing project was submitted to the City Council outlining a plan for 133 new multi-family and single-family residential units. With the new housing additions, the City and City Ventures agreed to implement a modified version of the FTH for nine homeowners.

Loans receivables of the City as of June 30, 2025, were:

Loans receivable $ 1,723,329
Less: Allowance for uncollectible loans (1,515,546)
Total loans receivable $ 207,783
Note 4 – Lease Receivable and Lease-Related Deferred Inflows of Resources The City leases various types of property including land, buildings, and infrastructure. Leases receivable consist of agreements with other entities for the “right–to–use” the underlying assets at various locations owned by the City. The remaining terms of the agreements range from 1 to 20 years. The interest rates used calculated the net present value of the lease receivable ranged from 0.675% to 7.8112%.

A. Governmental Activities
The City’s General Fund leased land and buildings to various companies.

For the year ended June 30, 2025, the City recognized $809,367 in lease revenue and $18,397 in interest revenue.

All lease agreements ended during the year ended June 30, 2025.

B. Business-Type Activities
The City’s Water Fund leases buildings and infrastructure to the California Water Service Company to serve City residents and businesses. Under the terms of the lease agreement, the California Water Service Company is responsible for all maintenance and capital improvements related to the leased assets.

For the year ended June 30, 2025, the City recognized $771,492 in lease revenue and $104,054 in interest revenue, and the outstanding net present value of the lease receivable amount is $6,158,452.

At June 30, 2025, the required payments for these leases, including interest, are:

Year Ending
June 30, Principal Interest Total
2026 752,783 $ 92,217 $ 845,000 $
2027 764,810 80,190 845,000
2028 777,028 67,972 845,000
2029 789,442 55,558 845,000
2030 802,054 42,946 845,000
2031–2034 2,272,335 51,415 2,323,750
Total 6,158,452 $ 390,298 $ 6,548,750 $
City of Commerce
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
64 Note 4 – Lease Receivable and Lease-Related Deferred Inflows of Resources B. Business-Type Activities (Continued)
At June 30, 2025, the amounts reported as deferred inflows of resources related to leases will be recognized as lease revenue as follows:

Year Ending
June 30, Amount
2026 771,492 $
2027 771,492
2028 771,492
2029 771,492
2030 771,492
2031–2034 2,121,598
Total 5,979,058 $
C. Fiduciary Activities
The Successor Agency leases land for the operation of the Commerce Truck Stop.

For the year ended June 30, 2025, the City recognized $54,119 in lease revenue and $74,493 in interest revenue, and the outstanding net present value of the lease receivable amount is $987,242.

At June 30, 2025, the required payments for these leases, including interest, are:

Year Ending
June 30, Principal Interest Total
2026 $ 23,947 $ 72,781 $ 96,728
2027 25,886 70,842 96,728
2028 27,982 68,746 96,728
2029 30,247 66,481 96,728
2030 32,697 64,031 96,728
2031-2035 299,343 256,842 556,185
2036-2040 547,140 92,469 639,609
Total $ 987,242 $ 692,192 $ 1,679,434
At June 30, 2025, the amounts reported as deferred inflows of resources related to leases will be recognized as lease revenue as follows:

Year Ending
June 30, Amount
2026 $ 54,119
2027 54,119
2028 54,119
2029 54,119
2030 54,119
2031-2035 270,593
2036-2040 270,589
Total $ 811,777
City of Commerce
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
65 Note 5 – Interfund Transactions
A. Due From/To Other Funds
At June 30, 2025, the City had the following due from/to other funds:

Proprietary Funds
General City Nonmajor Transit
Capital Projects Governmental Enterprise
Due From Fund Funds Fund Total
Governmental Funds:

General Fund $ 120 7,379,290 $ 7,125,112 $ 14,504,522 $ Governmental Funds
Due To
The above amounts represents short-term borrowing from deficits in the pooled cash account.

B. Transfers
During the year ended June 30, 2025, the City had the following transfers:

General City Nonmajor
General Capital Projects Governmental
Transfers Out Fund Fund Funds Total
Governmental Funds:

General Fund - $ 970,901 $ 2,915,000 $ 3,885,901 $
Nonmajor Governmental Funds 505,226 - - 505,226
$ 970,901 505,226 $ 2,915,000 $ 4,391,127 $
Governmental Funds
Transfers In
Transfers of $505,226 from nonmajor governmental funds were made to the General Fund to provide funding for street and road related expenditures and rideshare costs.

The General Fund transferred a total of $970,901 and $2,915,000 to the General City Capital Projects Fund and nonmajor governmental funds, respectively, for debt service-related costs, capital projects costs, and special revenue operating costs.

City of Commerce
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
66 Note 6 – Capital Assets
A. Governmental Activities
The summary of changes in governmental activities capital assets for the year ended June 30, 2025 is as follows:

Balance Balance
July 1, 2024 Additions Deletions Reclassification June 30, 2025 Capital assets, not being depreciated:

Land $ 12,946,340 $ - $ - $ 12,946,340 - $
Construction in progress 7,979,927 24,418,022 (2,637,270) - 29,760,679 Total capital assets, not being depreciated 20,926,267 24,418,022 (2,637,270) - 42,707,019 Capital assets, being depreciated:

Buildings 43,210,991 - - 43,210,991 -
Improvements 21,174,610 - - 892,844 22,067,454
Machinery and equipment 8,451,671 1,793,116 (293,963) - 9,950,824 Infrastructure 137,427,822 - 1,744,426 139,172,248
Total capital assets, being depreciated 210,265,094 1,793,116 (293,963) 2,637,270 214,401,517 Less accumulated depreciation for:

Buildings (32,760,580) (1,104,677) - (33,865,257) -
Improvements (11,063,984) (609,077) - (11,673,061) -
Machinery and equipment (6,816,242) (412,991) 293,963 (6,935,270) - Infrastructure (87,514,905) (1,627,256) - (89,142,161) - Total accumulated depreciation (138,155,711) (3,754,001) 293,963 (141,615,749) - Total capital assets, being
depreciated, net 72,109,383 (1,960,885) 2,637,270 - 72,785,768 Intangible capital assets, being amortized:

Right-to-use lease assets - equipment 1,531,528 314,626 (343,916) - 1,502,238 Right-to-use subscription assets - equipment 286,013 506,936 - - 792,949 Total intangible capital assets, net 1,817,541 821,562 (343,916) - 2,295,187 Less accumulated amortization for:

Right-to-use lease assets - equipment (438,340) (292,530) 343,916 - (386,954) Right-to-use subscription assets - equipment (57,006) (169,753) - - (226,759) Total accumulated amortization (495,346) (462,283) 343,916 - (613,713) Total intangible capital assets, being
amortized, net 1,322,195 359,279 - - 1,681,474
Total capital assets, net $ 94,357,845 $ 22,816,416 $ - $ 117,174,261 - $ Depreciation and amortization expense was charged to functions/programs of governmental activities for the year ended June 30, 2025 as follows:

General government $ 1,117,298
Public works 1,822,252
Parks, recreation and culture 1,103,433
Library 173,301
Total $ 4,216,284
City of Commerce
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
67 Note 6 – Capital Assets (Continued)
B. Business-Type Activities
The summary of changes in business-type activities capital assets for the year ended June 30, 2025 is as follows:

Balance Balance
July 1, 2024 Additions Deletions Reclassification June 30, 2025 Capital assets, not being depreciated:

Land $ 2,755,498 $ - $ - $ - $ 2,755,498
Total capital assets, not being depreciated 2,755,498 - - - 2,755,498 Capital assets, being depreciated:

Buildings and improvements 13,112,526 - - 13,112,526 -
Machinery and equipment 19,635,165 37,935 (59,831) 19,613,269 - Total capital assets, being depreciated 32,747,691 37,935 (59,831) 32,725,795 - Less accumulated depreciation for:

Buildings and improvements (6,998,265) (380,361) - (7,378,626) - Machinery and equipment (11,282,722) (1,184,662) 59,831 (12,407,553) - Total accumulated depreciation (18,280,987) (1,565,023) 59,831 (19,786,179) - Total capital assets, being
depreciated, net 14,466,704 (1,527,088) - 12,939,616 -
Intangible capital assets, being amortized:

Water rights 2,141,222 - - - 2,141,222
Total intangible capital assets, net 2,141,222 - - - 2,141,222 Less accumulated amortization for:

Water rights (1,684,107) (30,474) - (1,714,581) -
Total accumulated amortization (1,684,107) (30,474) - (1,714,581) - Total intangible capital assets, being
amortized, net 457,115 (30,474) - - 426,641
Total capital assets, net $ 17,679,317 $ (1,557,562) $ - $ 16,121,755 - $ Depreciation and amortization expense was charged to functions/programs of business-type activities for the year ended June 30, 2025 as follows:

Transit $ 1,402,993
CNG/LNG 92,291
Water 100,213
Total $ 1,595,497
City of Commerce
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
68 Note 7 – Long-Term Liabilities
A. Governmental Activities
Summary of changes in long-term liabilities for governmental activities for the year ended June 30, 2025 is as follows:

Balance
July 1, 2024 Balance Due within Due in More
(as restated) Additions Deletions June 30, 2025 One Year Than One Year Governmental Activities:
2014 JPFA Revenue Bonds 6,610,000 $ - $ (470,000) $ 6,140,000 $ $ 5,645,000 495,000 $ Premium on bond 622,408 - (60,234) 562,174 501,940 60,234 2021 Pension Obligation Bond 27,875,000 - (1,525,000) 26,350,000 24,815,000 1,535,000 Subtotal 35,107,408 - (2,055,234) 33,052,174 2,090,234 30,961,940 Finance purchase - 1,411,537 (175,276) 1,236,261 1,052,853 183,408 Lease payable 1,097,928 314,626 (276,172) 1,136,382 844,900 291,482 Subscription payable 202,316 506,936 544,907 (164,345) 376,321 168,586 Compensated absences* 5,122,981 - (1,490,587) 3,632,394 2,527,530 1,104,864 Claims payable 859,237 1,087,773 (587,064) 1,359,946 844,156 515,790 Total governmental activities $ 42,389,870 $ 3,320,872 $ (4,748,678) $ 40,962,064 $ 4,354,364 $ 36,607,700 * The change in the compensated absences liability is presented as a net change. 2014 JPFA Revenue Bonds
In September 2014, the City of Commerce Joint Powers Financing Authority issued $10,000,000 in Community Center Lease Revenue Bonds. The bonds are limited obligations of the JPFA payable from and secured by Revenues, consisting of Base Rental Payment to be made by the City to the JPFA pursuant to a Facility Lease, dated as of September 1, 2014. The bonds were composed of $7,200,000 serial bonds with interest rates ranging from 2% to 5% and maturity dates from 2015 through 2030, $2,800,000 term bonds with an interest rate of 5.00% maturing in 2034. The bonds were issued to refund the JPFA’s outstanding Community Center Lease Revenue Bonds, Series 2004. This difference between the cash flows required to service the old debt and the cash flows required to service the new debt was $3.4 million. The amount outstanding at June 30, 2025 is $6,140,000.

The annual debt service requirements are as follows:

Year Ending
June 30, Principal Interest Payments
2026 $ 495,000 $ 282,738 $ 777,738
2027 520,000 257,363 777,363
2028 550,000 233,706 783,706
2029 570,000 211,650 781,650
2030 590,000 185,500 775,500
2031-2035 3,415,000 444,125 3,859,125
Total $ 6,140,000 $ 1,615,082 $ 7,755,082
City of Commerce
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
69 Note 7 – Long-Term Liabilities (Continued)
A. Governmental Activities (Continued)
2021 Pension Obligation Bond
On August 1, 2021, the City of Commerce issued $27,875,000 Taxable Pension Obligation Bonds to pay all or a portion of the City’s unfunded accrued actuarial liability to the California Public Employee’s Retirement System with respect to the City’s defined benefit retirement plans for City employees. The interest is payable semiannually on the February 1st and August 1st. The interest rate on the bonds varies from 0.667% to 2.839% and mature August 1, 2041. The amount outstanding at June 30, 2025 is $26,350,000.

The annual debt service requirements are as follows:

Year Ending
June 30, Principal Interest Payments
2026 $ 1,535,000 $ 602,692 $ 2,137,692
2027 1,555,000 585,885 2,140,885
2028 1,575,000 564,705 2,139,705
2029 1,600,000 539,323 2,139,323
2030 1,630,000 510,548 2,140,548
2031-2035 8,695,000 2,002,820 10,697,820
2036-2040 7,705,000 861,672 8,566,672
2041-2042 2,055,000 55,841 2,110,841
Total $ 26,350,000 $ 5,723,486 $ 32,073,486
Finance Purchase
In September 19, 2024, the City of Commerce entered into a finance purchase arrangement to acquire two MCI buses. The total amount financed was $1,411,037 with a term of 84 months and annual payments beginning September 19, 2024. The interest rate on the financing is 3.705%, and the agreement includes a $1.00 purchase option at maturity on September 19, 2030. The amount outstanding at June 30, 2025 was $1,236,261.

The annual debt service requirements are as follows:

Year Ending
June 30, Principal Interest Total
2026 $ 183,408 $ 57,355 $ 240,763
2027 191,917 48,846 240,763
2028 200,821 39,942 240,763
2029 210,138 30,625 240,763
2030 219,887 20,876 240,763
2031 230,090 10,675 240,765
Total $ 1,236,261 $ 208,319 $ 1,444,580
City of Commerce
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
70 Note 7 – Long-Term Liabilities (Continued)
A. Governmental Activities (Continued)
Lease Liabilities
The City has entered into lease agreements with Enterprise Fleet Management for vehicles with terms of 60- months. Lease payments are due on the 1st of each month. The calculated interest rates range from 2.822% to

3.651%. In the event of default, the lease shall be deemed terminated. Outstanding lease liabilities at June 30, 2025 was in the amount of $1,136,382.

Future lease payments under the lease payable are as follows:

Year Ending
June 30, Principal Interest Total
2026 $ 291,482 $ 36,255 $ 327,737
2027 302,135 25,602 327,737
2028 308,095 14,587 322,682
2029 219,882 4,054 223,936
2030 14,788 83 14,871
Total $ 1,136,382 $ 80,581 $ 1,216,963
Subscription Liabilities
The City has entered into subscription for information technology arrangements. The terms of the arrangements range from 36 to 72 months with an implicit interest rates of 2.93 to 3.69%. Outstanding subscription liabilities at June 30, 2025 was in the amount of $554,907.

Principal and interest to maturity are as follows:

Year Ending
June 30, Principal Interest Total
2026 $ 14,551 168,586 $ 183,137 $
2027 160,506 8,680 169,186
2028 106,154 4,568 110,722
2029 53,822 2,457 56,279
2030 55,839 438 56,277
Total 544,907 $ 30,694 $ 575,601 $
B. Business-Type Activities
Summary of changes in long-term liabilities for business-type activities for the year ended June 30, 2025 is as follows:

Balance
July 1, 2024 Balance Due within Due in More
(as restated) Additions Deletions June 30, 2025 One Year Than One Year Business-type Activities:

Compensated absences* $ 1,259,465 $ - $ (274,340) $ 985,125 $ 367,172 $ 617,953 Claims payable 65,679 14,374 (7,270) 72,783 16,157 56,626 Total business-type activities $ 14,374 1,325,144 $ (281,610) $ 1,057,908 $ 383,329 $ 674,579 $ * The change in the compensated absences liability is presented as a net change.

City of Commerce
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
71 Note 7 – Long-Term Liabilities (Continued)
C. Fiduciary Activities
Summary of changes in long-term liabilities for fiduciary activities for the year ended June 30, 2025 is as follows:

Balance Balance Due within Due in More
July 1, 2024 Additions Deletions June 30, 2025 One Year Than One Year Successor Agency:
2016 A & B Tax Allocation
Refunding Bonds $ 23,460,000 $ (6,960,000) - $ $ 16,500,000 $ 1,655,000 $ 14,845,000 2018 Tax Allocation Bonds 11,510,000 - 11,510,000 - 4,630,000 6,880,000 Pollution Redeption Obligation 4,710,900 (1,335,300) - 3,375,600 1,170,200 2,205,400 Due to City of Commerce 3,014,695 (3,014,695) - - - -
Subtotal 42,695,595 (11,309,995) - 31,385,600 7,455,200 23,930,400 Premium on bonds:
2016 Tax Allocation Refunding Bonds 799,784 - (72,707) 727,077 72,707 654,370 2018 Tax Allocation Bonds 1,110,823 (370,274) - 740,549 370,274 370,275 Subtotal 1,910,607 (442,981) - 1,467,626 442,981 1,024,645 Total successor agency $ 44,606,202 $ (11,752,976) - $ $ 32,853,226 $ 7,898,181 $ 24,955,045 2016 A & B Tax Allocation Refunding Bonds
In March 2016, the Successor Agency to the Commerce Community Development Commission issued $41,625,000 in Tax Allocation Refunding Bonds. The bonds were issued for the purpose of refunding certain obligations of the former Commerce Community Development Commission’s 2003 Series A-1 Tax Allocation Bonds, 2003 Series A-H Tax Allocation Bonds, 2003 Series A-E Tax Allocation Bonds, and the Series 1998A Tax Allocation Bonds. As a result, the refunded bonds are considered to be defeased and the liabilities have been removed from the Statement of Fiduciary Net Position. The reacquisition price exceeded the net carrying amount of the old debt by $585,557. This amount is being amortized over the remaining life of either the old or new the debt, whichever has a shorter life. Interest on the bonds accrues at rates between 3.0% and 5.0% and are payable on February 1 and August 1. Bonds mature in various amounts ranging from $755,000 to $6,960,000 through 2035. The amount outstanding at June 30, 2025 is $16,500,000.

The annual debt service requirements are as follows:

Year Ending
June 30, Principal Interest Principal Interest Principal Interest 2026 $ 654,328 900,000 $ 755,000 $ 11,797 $ 1,655,000 $ 666,125 $ 2027 1,710,000 577,281 - - 1,710,000 577,281
2028 1,760,000 490,531 - - 1,760,000 490,531
2029 1,620,000 406,031 - - 1,620,000 406,031
2030 1,700,000 323,031 - - 1,700,000 323,031
2031-2035 6,725,000 706,384 - - 6,725,000 706,384
2036 1,330,000 20,781 - - 1,330,000 20,781
Total 15,745,000 $ 3,178,367 $ 755,000 $ 11,797 $ 16,500,000 $ 3,190,164 $ 2016 A 2016 B Total
2018 Tax Allocation Bonds
In March 2018, the Successor Agency to the Commerce Community Development Commission (CDC) issued $29,720,000 in Tax Allocation Refunding Bonds. The bonds were issued for the purpose of refunding certain obligations of the former Commerce Community Development Commission’s 2007 Tax Allocation Bonds and 2007 JPFA Revenue Bonds.

City of Commerce
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
72 Note 7 – Long-Term Liabilities (Continued)
C. Fiduciary Activities (Continued)
2018 Tax Allocation Bonds (Continued)
As a result, the refunded bonds are considered to be defeased and the liabilities have been removed from the Statement of Net Position. The reacquisition price exceeded the net carrying amount of the old debt by $6,846,417. This amount is recorded as a deferred loss on refunding and being amortized over the remaining life of either the old or new the debt, whichever has a shorter life. Interest on the bonds accrues at 5.0% and are payable on February 1 and August 1. Bonds mature in various amounts ranging from $1,845,000 to $5,035,000 through 2027. The amount outstanding at June 30, 2025 is $11,510,000.

The annual debt service requirements are as follows:

Year Ending
June 30, Principal Interest Total
2026 4,630,000 $ $ 459,750 $ 5,089,750
2027 1,845,000 287,385 2,132,385
2028 5,035,000 115,385 5,150,385
Total $ 11,510,000 $ 862,520 $ 12,372,520
Pollution Remediation Obligation
The Successor Agency to the former Commerce Community Development Commission is engaged in ongoing environmental remediation activities at the former Specific Plating facility, located at 1350 South Eastern Avenue. This site is being addressed under the oversight of the California Department of Toxic Substances Control (“DTSC”) through a Voluntary Cleanup Agreement. The Successor Agency contracted GSI Environmental Inc. to perform the environmental work. Initial remediation activities began under a June 1, 2018 agreement. These activities were approved for funding through the Recognized Obligation Payment Schedule (“ROPS”) as an enforceable obligation of the former Redevelopment Agency. All costs associated with the remediation are eligible for reimbursement from Redevelopment Property Tax Trust Fund (“RPTTF”) allocations.

The City will continue to evaluate and report updated cost estimates and obligations as additional information becomes available. The amount outstanding at June 30, 2025 is $3,375,600.

The annual obligation requirements are as follows:

Year Ending
June 30, Principal
2026 1,170,200 $
2027 1,330,200
2028 875,200
Total $ 3,375,600
City of Commerce
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
73 Note 7 – Long-Term Liabilities (Continued)
C. Fiduciary Activities (Continued)
Due to City of Commerce
The Successor Agency assumed a City Loan for the purchase of property originally executed on March 3, 1992, between the former Redevelopment Agency and the City of Commerce. The loan was recognized as an enforceable obligation of the former Redevelopment Agency and approved through the Recognized Obligation Payment Schedule (“ROPS”) process. The loan was payable from property tax revenues allocated to the Redevelopment Property Tax Trust Fund (“RPTTF”) and distributed by the County of Los Angeles AuditorController pursuant to approved ROPS. The related loan payable to the City of Commerce was fully repaid as of June 30, 2025.

Pledged Revenue
The Successor Agency has pledged tax revenues to the repayment of the former Redevelopment Agency’s debts through the final maturity of the loans, or early retirement of the loans, whichever comes first. Tax revenues consist of property tax revenues allocated to the Redevelopment Property Tax Trust Fund (“RPTTF”) for the Successor Agency that is maintained by the County of Los Angeles Auditor and Controller. The amounts so allocated are those that would have been allocated to the RDA had the RDA not been dissolved. The Auditor and Controller (“A&C”) then distributes RPTTF revenues to the Successor Agency based on Recognized Obligation Payment Schedules (“ROPS”) as approved by the California State Department of Finance (“DOF”) and after deducting amounts for A&C administrative costs and amounts required to be paid under tax-sharing agreements unless the payment of such amounts has been subordinated to payment of debt services on the loans. Each ROPS covers a six-month period and includes the applicable debt service payments on the loans. The RPTTF revenue distributed to the Successor Agency in fiscal year 2025 was $12,365,917. The total amount of pledged revenues related to outstanding enforceable obligations as of June 30, 2025 was $8,296,772.

Note 8 – Self Insurance Programs
A. General Liability
Description of Self-Insurance Pool Pursuant to Joint Powers Agreement The City is a member of the California Joint Powers Insurance Authority (the “CJPIA”). The CJPIA is composed of 126 California public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq. The purpose of the Authority is to arrange and administer programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group purchased insurance for property and other lines of coverage. The CJPIA began covering claims of its members in 1978.

Each member government has an elected official as its representative on the Board of Directors. The Board operates through a nine-member Executive Committee.

City of Commerce
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
74 Note 8 – Self Insurance Programs (Continued)
A. General Liability (Continued)
Primary Self-Insurance Programs of the Authority
Liability coverage includes auto liability, employment practices liability, public officials’ errors and omissions, bodily injury, personal injury, third party property damage, advertising injury, and employee benefit administration liability. The City has a retained limit of $250,000 per occurrence. The overall coverage limit for each member, including all layers of coverage, is $50 million per occurrence. The coverage structure is composed of a combination of pooled self-insurance, reinsurance, and excess insurance. Additional information concerning the coverage structure is available on the CJPIA’s website:
https://cjpia.org/coverage/risk-sharing-pools/.

Purchased Insurance
The City also participates in the following coverage programs provided by the CJPIA:

Property Insurance
This insurance protection is underwritten by several insurance companies. The City’s property is currently insured according to a schedule of covered property submitted by the City to the CJPIA. The total insured value of scheduled City property is $152,544,954. There is a $10,000 deductible per occurrence except for non-emergency vehicle insurance which has a $2,500 deductible.

Earthquake and Flood Insurance
This coverage is part of the Property Protection Program. The City has total insured values of $5,214,622 scheduled for coverage under this program. There is a deductible of 5% per unit of value with a minimum deductible of $100,000.

Pollution Legal Liability Insurance Program
The policy covers sudden and gradual pollution of scheduled property, streets, and storm drains owned by the City. Coverage is on a claims-made basis. There is a $250,000 deductible. The CJPIA has an aggregate limit of $20 million.

Crime Insurance
Formerly called Blanket Fidelity Bond, this policy covers faithful performance, depositor’s forgery, theft of money and securities, and computer fraud related to the transfer of money. The policy limit is $1,000,000, and the deductible is $2,500.

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

City of Commerce
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
75 Note 8 – Self Insurance Programs (Continued)
B. Workers’ Compensation
The City is exposed to various risks of loss related to its operation, including losses associated with errors and omissions, injuries to employees and members of the public. The City uses the General and Transit Funds to account for and finance risks for workers’ compensation. Excess insurance is provided by Municipal Insurance Cooperative JPA (“MIC”). This policy is designed to cover claims in excess of the City’s retention of $1,000,000 per occurrence, for Workers’ Compensation. Under this policy, the City recovers claims in excess of the selfinsured retention of $250,000 per occurrence, and provides workers’ compensation coverage up to $750,000 per occurrence.

The claims and judgements liability reported in the General and Transit Funds are based on the requirements of Governmental Accounting Standards Board Statements Nos. 10 and 30, which requires that a liability for claims and judgements be reported if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of loss can be reasonably estimated. As of June 30, 2025, claims and judgments payable, including estimated claims for incurred but not reported claims, amounted to $1,432,729 of which $531,947 represents the current portion.

During the past three fiscal (claims) years, none of the above programs of protection have had any settlements or judgements that exceeded pooled or insured coverage. There have been no significant reductions in insured liability coverage in the prior year.

Changes in the Workers’ Compensation claims and judgments payable amounts for the three years ended June 30, 2025 are as follows:

Current Year
Beginning of Fiscal Claims and Changes Balance at Fiscal Year Ended June 30, Year Liability in Estimates Claim Payments Year End 2023 $ 680,445 $ 809,006 $ (512,893) $ 976,558
2024 976,558 463,046 (514,688) 924,916
2025 924,916 1,102,147 (594,334) 1,432,729
Note 9 – Defined Benefit Pension Plans
A. General Information about the Pension Plan
Plan Description
The City contributes to the California Public Employees’ Retirement System (“CalPERS”), an agent multipleemployer defined benefit pension plan. CalPERS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. CalPERS acts as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by State statute and City ordinance. Copies of the CalPERS annual financial report may be obtained from https://www.calpers.ca.gov/page/forms-publications.

City of Commerce
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
76 Note 9 – Defined Benefit Pension Plans (Continued)
A. General Information about the Pension Plan (Continued) 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. Below is the summary of the plans' provisions and benefits in effect for the year ended June 30, 2025, for which the City has contracted:

Classic PEPRA
Hire date
Prior to
January 1, 2013
On or after
January 1, 2013
Benefit formula 2% @ 55 2% @ 62
Benefit vesting schedule 5 years of service 5 years of service Benefit payments Monthly for life Monthly for life
Retirement age 50 52
Monthly benefits, as a % of eligible compensation 2.0% to 2.7% 1.0% to 2.5% Required employee contribution rates 7.000% 7.750%
Required contribution during measurement period 11.660% 11.660% Miscellaneous
CalPERS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members 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 (total service across all CalPERS employers, and with certain other Retirement Systems with which CalPERS has reciprocity agreements). All members are eligible for non-duty disability benefits after 5 years of service. The death benefit is one of the following: Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for the plan are applied as specified by the Public Employees’ Retirement Law.

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

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

Miscellaneous
Active employees 149
Transferred members 43
Terminated members 37
Retired Employees and Beneficiaries 230
Total 459
City of Commerce
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
77 Note 9 – Defined Benefit Pension Plans (Continued)
A. General Information about the Pension Plan (Continued) Contributions
Section 20814(c) of the California Public Employees’ Retirement Law (“PERL”) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is based on the estimated amount necessary to pay the Plan's allocated share of the risk pool's costs of benefits earned by employees during the year, and any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

B. Net Pension Liabilities
Actuarial Methods and Assumptions Used to Determine Total Pension Liability For the measurement period ended June 30, 2024, the total pension liability was determined by rolling forward the June 30, 2023 total pension liability. The June 30, 2024 total pension liabilities were based on the following actuarial methods and assumptions:

Actuarial Cost Method
Actuarial Assumptions:

Discount Rate
Inflation
Salary Increases
Mortality Rate Table1
Post Retirement Benefit Increase
Varies by Entry Age and Service
Entry Age Actuarial Cost Method

6.90%

2.30%
Derived using CalPERS’ Membership Data for all Funds.

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 probabilities of mortality are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. Mortality rates incorporate full generational 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.

Change of Assumption
There was no changes in assumptions in 2024.

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

In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations. 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 Commerce
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
78 Note 9 – Defined Benefit Pension Plans (Continued)
B. Net Pension Liabilities (Continued)
Long-term Expected Rate of Return (Continued)
The expected real rates of return by asset class are as follows:

Assumed
Asset Class1 Asset Allocation Real Return1,2
Global equity - Cap-weighted 30.00% 4.54
Global equity - Non-Cap-weighted 12.00% 3.84
Private equity 13.00% 7.28
Treasury 5.00% 0.27
Mortgage-backed Securities 5.00% 0.5
Investment Grade Corporates 10.00% 1.56
High yield 5.00% 2.27
Emerging Market Debt 5.00% 2.48
Private equity 5.00% 3.57
Real assets 15.00% 3.21
Leverage -5.00% (0.59)
100.00%
1 An expected inflation of 2.30% used for this period.
2 Figures are based on the 2021 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.

Subsequent Events
There were no subsequent events that would materially affect the results presented in this disclosure.

City of Commerce
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
79 Note 9 – Defined Benefit Pension Plans (Continued)
C. Changes in the Net Pension Liability
The following table shows the change in net pension liability over the measurement period:

Total Pension Plan Fiduciary Net Net Pension
Liability Position Liability/(Asset)
(a) (b) (c) = (a) - (b)
Balance at June 30, 2023 (Valuation Date) 135,186,155 $ 119,408,388 $ 15,777,767 $ Changes Recognized for the Measurement Period:

Service Cost 2,093,660 - 2,093,660
Interest on the total pension liability 9,041,219 - 9,041,219 Changes of benefit terms - - -
Difference between expected and actual experience (1,393,542) - (1,393,542) Contributions from the employer - 1,414,883 (1,414,883) Contributions from employees - 923,064 (923,064)
Net investment income - 11,106,208 (11,106,208)
Benefit payments, including refunds of employee
contributions (7,614,586) (7,614,586) -
Administrative expenses - (97,163) 97,163
Net Changes during July 1, 2023 to June 30, 2024 2,126,751 5,732,406 (3,605,655) Balance at June 30, 2024 (Measurement Date) $ 137,312,906 $ 125,140,794 $ 12,172,112 Miscellaneous Plan
Increase (Decrease)
Sensitivity of the City’s 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 6.90%, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (5.90%) or 1 percentage-point higher (7.90%) than the current rate:

Discount Rate Current Discount Discount Rate
- 1% (5.90%) Rate (6.90%) + 1% (7.90%)
Miscellaneous Plan $ 12,172,112 29,402,073 $ (2,132,923) $ Plan's Net Pension Liability/(Asset)
Pension Plan Fiduciary Net Position
Detail information about the plan’s fiduciary net position is available in the separately issued CalPERS financial report and can be obtained from CalPERS’ website under Forms and Publications.

City of Commerce
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
80 Note 9 – Defined Benefit Pension Plans (Continued)
D. Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions For the year ended June 30, 2025, the City recognized pension expense in the amount of $3,419,258. At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Outflows Deferred Inflows
of Resources of Resources
Contribution made after the measurement date 981,564 $ - $ Changes of assumptions 119,457 -
Difference between expected and actual experience 317,039 (1,028,022) Net difference between projected and actual earning
on pension plan investments 2,349,844 -
Total 3,767,904 $ (1,028,022) $
Miscellaneous Plan
The amounts above are net of outflows and inflows recognized in the 2023-2024 measurement period expense.

The expected average remaining service lifetime (“EARSL”) is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired) in the risk pool. The EARSL for risk pool for the 2023-2024 measurement period is 3.3 years, which was obtained by dividing the total service years of 1,494 (the sum of remaining service lifetimes of the active employees) by 459 (the total number of participants:
active, inactive, and retired).

Deferred outflows of resources related to pensions resulting from the City’s contributions made subsequent to the measurement date in the amount of $981,564 will be recognized as a reduction of the net pension liability in the year ending June 30, 2026.

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

Measurement Deferred Outflows/
Period (Inflows)
Ending June 30 of Resources
2025 $ 279,772
2026 2,640,020
2027 (549,315)
2028 (612,159)
2029 -
Thereafter -
$ 1,758,318
City of Commerce
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
81 Note 10 – Other Postemployment Benefits (“OPEB”) Plan A. General Information about the OPEB Plan
Plan Description
The City administers an agent multiple employers defined benefit plan with medical insurance benefits to eligible retirees and their spouses in accordance with various labor agreements. After age 65, Medicare automatically becomes the primary provider of health coverage. The City’s defined benefit plan becomes the secondary provider. Eligible retirees will have no noticeable change in health benefits or plan administration; however, there is a reduction in the City’s cost of health coverage as the secondary provider. The City’s defined benefit plan administrator establishes the cost of secondary provider rates annually. The City will pay 100% for eligible retirees’ health coverage.

Employees Covered by Benefit Term
Employees are eligible for retiree health benefits if they retire from the City on or after age 50 with at least 5 years of service and are eligible for a PERS pension. As of the June 30, 2024 measurement date, the following participants were covered by the benefit terms:

Active employees 157
Retirees and beneficiaries 139
Inactive with deferred benefits 14
Total 310
Contributions
The contribution requirements of plan members and the City are established and may be amended by City Council. The contribution required to be made under City Council and labor agreement requirements is based on a pay-as-you-go basis (i.e., as medical insurance premiums become due). In fiscal year 2014-15, the City opened an irrevocable trust with PARS for funding the obligation. For the year ending June 30, 2025, the City contributed $2,159,379 for current premiums and implied subsidy.

B. Net OPEB Liability
The City's net OPEB liability is based on a June 30, 2024 valuation with liabilities and assets measured as of June 30, 2024.

City of Commerce
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
82 Note 10 – Other Postemployment Benefits (“OPEB”) Plan (Continued) B. Net OPEB Liability (Continued)
Actuarial Assumptions
The total OPEB liability as of June 30, 2024 measurement date was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:

Actuarial Cost Method Entry Age Normal, Level Percentage of Payroll Actuarial Assumptions:

Discount Rates
General Inflation
Salary Increases
Mortality
Mortality Improvement
Healthcare Cost Trend Rates

4.01% per annum as of June 30, 2024

3.74% per annum as of June 30, 2023

2.5% per annum

2.75% per annum, in aggregate
CalPERS 2000-2019 Experience Study
Scale MP-2021 Projection Scale
Non-Medicare - 7.35% for 2027, decreasing to an ultimate rate of 3.45% in 2076 Medicare (Non-Kaiser) - 6.50% for 2027, decreasing to an ultimate rate of 3.45% in 2076
Medicare (Kaiser) - 5.45% for 2027, decreasing to an ultimate rate of 3.45% in 2076.

Change in Assumptions
The discount rate was changed from 3.74% at June 30, 2023 to 4.01% at June 30, 2024 measurement date.

Discount Rate
The discount rate used to measure the total OPEB liability was 4.01%. The projection of cash flows used to determine the discount rate assumed that the City contribution will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan's fiduciary net position was projected to cover all future OPEB payments. Therefore, the discount rate was set equal to the long-term expected rate of return.

Expected Long-Term Rates of Return
Target Allocation Expected Real
Asset Class PARS-Moderate Rate of Return
Global Equity 50% 4.56%
Fixed Income 45% 0.78%
Cash 5% (0.50%)
Total 100%
Assumed Long-term rate of inflation is 2.5%.

Long-term expected rate of return is 5.50%.

City of Commerce
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
83 Note 10 – Other Postemployment Benefits (“OPEB”) Plan (Continued) C. Changes in the Net OPEB Liability
The following presents the changes in the net OPEB liability for the governmental activities’ Retiree Health Plan:

Total OPEB Plan Fiduciary Net Net OPEB
Liability Position Liability/(Asset)
(a) (b) (c) = (a) - (b)
Balance at June 30, 2023 $ 63,025,590 $ 3,595,202 $ 59,430,388 Changes recognized for the measurement period:

Service cost 2,208,203 - 2,208,203
Interest on the total OPEB liability 2,401,411 - 2,401,411 Difference between expected and actual experience 402,546 - 402,546 Changes of assumptions (3,769,569) - (3,769,569)
Contributions from the employer - 2,053,891 (2,053,891) Net investment income - 409,620 (409,620)
Benefit payments, including refunds of employee
contributions (2,049,915) (2,049,915) -
Administrative expense - (13,260) 13,260
Net Changes during July 1, 2023 to June 30, 2024 (807,324) 400,336 (1,207,660) Balance at June 30, 2024 (Measurement Date) $ 62,218,266 $ 3,995,538 $ 58,222,728 Increase (Decrease)
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The net OPEB liability of the City, as well as what the City's net OPEB liability would be if it were calculated using a discount rate that is one percentage point lower (3.01%) or one percentage point higher (5.01%) follows:

Discount Rate Current Discount Discount Rate
- 1% (3.01%) Rate (4.01%) + 1% (5.01%)
$ 58,222,728 68,058,681 $ 50,270,983 $
Plan's Net OPEB Liability/(Asset)
Sensitivity of the Net OPEB Liability to Changes in the Healthcare Cost Trend Rates The net OPEB liability of the City, as well as what the City's net OPEB liability would be if it were calculated using healthcare cost trend rates that are one percentage point lower or one percentage point higher than current healthcare cost trend rates follows:
1% Decrease Current Trend Rate 1% Increase
$ 49,423,895 $ 58,222,728 $ 69,305,480
Plan's Net OPEB Liability/(Asset)
City of Commerce
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
84 Note 10 – Other Postemployment Benefits (“OPEB”) Plan (Continued) 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 an OPEB expense of $2,525,051. At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred outflows Deferred inflows
of Resources of Resources
Contribution made after the measurement date 2,159,379 $ - $ Changes of assumptions 251,531 6,051,280
Difference between expected and actual experience 329,356 1,086,164 Net difference between projected and actual earnings
on plan investments - 24,721
Total 2,740,266 $ 7,162,165 $
OPEB Plan
Deferred outflows of resources related to OPEB resulting from City’s contributions subsequent to the measurement date in the amount of $2,159,379 will be recognized as a reduction of the net OPEB liability in the year ending June 30, 2026.

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

Deferred Outflows
Fiscal Year /(Inflows)
Ending June 30 of Resources
2026 (2,352,153) $
2017 (1,882,078)
2028 (1,339,122)
2029 (701,832)
2030 (306,093)
Thereafter -
$ (6,581,278)
Note 11 – Deferred Compensation Plan
The City offers its employees a deferred compensation plan created in accordance with Section 457 of the Internal Revenue Code. The plan is available to all employees and permits them to defer a portion of their salary until future years. Participation in the plan is optional and compensation, once deferred, is not available to employees until termination, retirement, death, or unforeseeable emergency.

The ICMA Retirement Corporation, one of the City’s two deferred compensation plan administrators, holds all plan assets in a trust account for the exclusive benefit of the plan participants. Aetna Life Insurance and Annuity Company, the other plan administrator, maintains all of the plan assets in an annuity contract for the exclusive benefit of the plan participants. The amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts are held in such account for the exclusive benefit of the City employee participant and their beneficiaries.

City of Commerce
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
85 Note 11 – Deferred Compensation Plan (Continued)
While the City has the power and authority to administer and adopt rules and regulations for the plan, all investment decisions under the plan are the responsibility of the plan participants. The assets of the plan are not owned by the City and the City has no liability for losses under the plan.

Note 12 – Net Investment in Capital Assets
Net investment in capital assets at June 30, 2025 is reported as follows:

Governmental Business-Type
Activities Activities Transit CNG/LNG Water
Total capital assets, net 117,174,261 $ 16,121,755 $ 12,722,836 $ 2,720,546 $ 678,373 $ Capital related debt (9,619,724) - - - -
Retentions payable (1,437,256) - - - -
Net investment in capital assets 106,117,281 $ 16,121,755 $ 12,722,836 $ 2,720,546 $ 678,373 $ Enterprise Funds
Note 13 – Classification of Fund Balances
At June 30, 2025, fund balances are classified in the governmental funds as follows:

General City Nonmajor
Capital Projects Governmental
General Fund Funds Total
Nonspendable:

Prepaid items and deposits 468,840 $ - $ - $ 468,840 $
Land held for development 19,535,000 - - 19,535,000
Total nonspendable 20,003,840 - - 20,003,840
Restricted:

Community development projects - - 60,011 60,011
Public safety - - 234,032 234,032
Low and moderate housing - - 2,228,603 2,228,603
Transportation - - 726,767 726,767
Public works - - 2,036,654 2,036,654
Capital projects - 3,342,193 - 3,342,193
Debt service - - 2,201 2,201
Pension 3,529,621 - - 3,529,621
Total restricted 3,529,621 3,342,193 5,288,268 12,160,082 Committed:

Capital projects 12,796,957 - 12,796,957 -
Community development - - 1,974,109 1,974,109
Total committed 12,796,957 - 1,974,109 14,771,066
Unassigned (deficit) 115,692,504 (2,189,927) 113,502,577 - Total fund balances $ 152,022,922 $ 1,152,266 $ 7,262,377 $ 160,437,565 City of Commerce
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
86 Note 14 – Tax Abatement
The City enters into various tax abatement agreements for the purpose of attracting or retaining businesses within the City’s jurisdiction. The Successor Agency has also entered into various tax abatement agreements that was also for the purpose of attracting or retaining businesses within the jurisdiction of the former Redevelopment Agency of the City.

The City has an agreement with a transportation/logistics company to pay that company a percentage of all sales tax revenue generated in excess of $40,000,000. During the fiscal year, the City abated sales tax revenue of $535,731 to that fuel distributor.

Note 15 – Commitments and Contingencies
Under the terms of federal, county, and state grants, periodic audits are required and certain costs may be questioned as not appropriate expenditures under the terms of the grants. Such audits could lead to reimbursements to the grantor agencies. If expenditures were disallowed, the City believes such disallowances, if any, would be immaterial.

The City is a defendant in a number of lawsuits that have arisen in the normal course of business. While substantial damages are alleged in some of these actions, their outcome cannot be predicted with certainty. In the opinion of the City Attorney, these actions when finally adjudicated will not have material adverse effect on the financial position of the City.

Note 16 – Individual Fund Disclosure
Funds with deficit fund balances at June 30, 2025 are as follows:

Funds Amount
Proprietary Funds:

Transit $ (14,259,027)
The City plans to eliminate the deficit fund balances by utilizing surplus revenue from the City’s CNG/LNG station.

Note 17 – Certain Risk Disclosures
The City derives approximately 40 percent of its General Fund revenues from gaming operations located within the City. These revenues primarily consist of license taxes generated by cardroom activities and represent a significant revenue concentration. In September 2024, the State of California enacted SB 549 into law, granting federally recognized tribal governments the legal standing to file lawsuits against commercial cardrooms on alleged violations of exclusive gaming rights. Based on preliminary scenario-based planning, management estimates that the potential annualized impact to General Fund revenues could range from approximately $8.0 million to $18.0 million. As of June 30, 2025, and the outcome of SB 549–related matters remains uncertain, no revenue reductions have been recognized in the accompanying financial statements.

To mitigate this risk, the City maintains strong reserve levels and liquidity, has implemented enhanced expenditure monitoring and identified potential cost containment measures, and is pursuing revenue diversification strategies, including consideration of a local transactions and use tax measure. Management will continue to monitor developments and evaluate financial impacts as additional information becomes available.

City of Commerce
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
87 Note 18 – Restatement of Beginning Net Position and Fund Balances Restatement of beginning net position and fund balances are as follows:

June 30, 2024 Changes Within the
As Previously Financial Reporting Impelmentation June 30, 2024 Reported Entity of GASB 101 As Restated
Government-Wide
Governmental Activities 173,911,636 $ - $ (1,904,177) $ 172,007,459 $ Business-Type Activities (2,916,328) - (589,096) (3,505,424) Total primary government 170,995,308 $ - $ (2,493,273) $ 168,502,035 $ Governmental Funds:

Major Funds:

General Fund 155,757,029 $ - $ - $ 155,757,029 $
General City Capital
Projects Fund - 8,289,681 - 8,289,681
Nonmajor Funds 14,842,099 (8,289,681) - 6,552,418
Total Governmental Funds 170,599,128 $ - $ - $ 170,599,128 $ Proprietary Funds:

Major Funds:

Transit Fund (10,698,819) $ - $ (589,096) $ (11,287,915) $ CNG/LNG Fund 4,011,986 - - 4,011,986
Water Fund 3,770,505 - - 3,770,505
Total Proprietary Funds (2,916,328) $ - $ (589,096) $ (3,505,424) $ Changes Within the Financial Reporting Entity
The General City Capital Projects Fund changed from a nonmajor fund to a major fund ($8,289,681).

Implementation of GASB Statement No. 101, Compensated Absences Effective for the fiscal year ended June 30, 2025, the City implemented GASB Statement No. 101, Compensated Absences. This statement establishes accounting and financial reporting standards for compensated absences, including vacation, sick leave, and other paid time off. The implementation of GASB 101 resulted in a change in accounting principle, and prior year amounts have been restated accordingly.

Under GASB 101, a liability must be recognized for leave that is attributable to services already rendered, accumulates and carries forward to future periods, and is more likely than not to be used or paid. This represents a shift from previous guidance, particularly in how likelihood and eligibility are assessed. The effect of the restatement is as shown above.

Note 19 – Subsequent Event
On February 6, 2026, the California Attorney General finalized new gaming regulations, effective April 1, 2026, restricting certain gaming activities, including blackjack-style games and the use of third-party proposition player services. This regulatory development would materially affect cardroom operations and related City revenues.

City of Commerce
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
88 Note 19 – Subsequent Event (Continued)
On February 24, 2026, the City declared a fiscal emergency pursuant to Article XII C, Section 2(b) of the California Constitution. Casino related revenues currently account for approximately forty percent (40%) of the City’s General Fund and generate in excess of $30 million annually. These revenues support essential City services including law enforcement, emergency response, youth and senior programming, library services, park maintenance, infrastructure improvements, and community services. In response to the anticipated revenue loss, the City called for a consolidated special election to be held on June 2, 2026 for 1/4 cent (0.25%) Transaction and Use Tax measure, which is estimated to generate approximately $4.5 million annually for general government use.

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

Taxes 44,050,278 $ 44,050,278 $ 46,675,178 $ 2,624,900 $ Casino license tax 29,370,000 29,370,000 30,563,683 1,193,683 Licenses and permits 5,433,950 5,433,950 7,283,632 1,849,682 Intergovernmental 388,300 541,585 2,891,286 2,349,701
Charges for services 1,872,797 1,880,996 2,050,164 169,168 Activity fees 188,502 253,639 514,423 260,784
Fines, forfeitures, and penalties 1,308,200 1,308,200 1,567,406 259,206 Use of money and property 1,000,000 1,000,000 2,653,525 1,653,525 Miscellaneous 300,603 300,603 1,161,678 861,075
Total revenues 84,139,251 83,912,630 95,360,975 11,221,724 EXPENDITURES:

Current:

General government 16,266,859 18,156,544 17,288,849 867,695 Community development 1,208,769 1,212,769 395,225 817,544 Public safety 28,281,781 28,790,868 28,214,076 576,792
Public works 18,683,460 30,361,430 17,218,908 13,142,522 Library 3,571,101 3,802,453 3,800,511 1,942
Parks, recreation and culture 9,941,609 10,909,245 9,980,942 928,303 Capital outlay 11,613,162 34,828,034 20,610,886 14,217,148 Debt service:

Principal retirement 253,060 253,060 615,793 (362,733)
Interest and fiscal charges - - 125,717 (125,717)
Total expenditures 89,819,801 128,314,403 98,250,907 30,063,496

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (5,907,171) (44,175,152) (2,889,932) 41,285,220 OTHER FINANCING SOURCES (USES):

Transfers in 800,000 800,000 505,226 (294,774)
Transfers out (2,145,000) (3,863,201) (3,885,901) (22,700) Proceeds from sale of assets - - 303,401 303,401
Issuance of lease liabilities - - 314,626 314,626
Issuance of subscription liabilities - - 506,936 506,936 Issuance of finance purchase - 1,411,537 - 1,411,537
Total other financing sources (uses) (1,345,000) (3,063,201) (844,175) 2,219,026 NET CHANGE IN FUND BALANCE $ (7,252,171) $ (47,238,353) (3,734,107) $ 43,504,246 FUND BALANCE:

Beginning of year 155,757,029
End of year $ 152,022,922
Required Supplementary Information (Unaudited)
Budgetary Comparison Schedule - General Fund
City of Commerce
For the Year Ended June 30, 2025
91 This page intentionally left blank.
92 Budget and Budgetary Accounting
The City prepares its budgets on the basis of estimated revenues and expenditures and, accordingly, the budget amounts included in the accompanying financial statements are presented on a basis substantially consistent with generally accepted accounting principles. Encumbrance accounting is utilized during the fiscal year, whereby purchase orders, contracts and other commitments are recorded in order to control appropriations. However, at fiscal year end, all appropriations lapse. Accordingly, encumbrances are cancelled and generally are re-appropriated as part of the following year’s budget. Encumbrances are not included in reported expenditures.

Annual budgets are adopted for the General Fund, Special Revenue Funds, Debt Service Funds, and Capital Projects Funds. In fiscal year 2024-2025, no budget was adopted for the Supplemental Law Enforcement Special Revenue Fund, State Gas Tax Special Revenue Fund, Community Development Block Grant Special Revenue Fund, Air Quality Management District Special Revenue Fund, and Housing Special Revenue Fund. The City Council approves total budgeted appropriations and any amendments to appropriations throughout the year.

City of Commerce
Required Supplementary Information
Notes to the Budgetary Comparison Schedule
For the Year Ended June 30, 2025
The City of Commerce, a general-law city in the State of California, does not legally require a budget. Each May, the City Administrator submits a proposed budget to the City Council. The City Council holds public hearings and may modify the appropriations by majority approval. Budgetary controls are maintained at the fund level. Management may transfer amounts within the function level within a fund without the approval of City Council. Additional appropriations during the year may be submitted to the City Council for review and approval. 93 Measurement period 2014-15 2015-16 2016-17 2017-18 2018-19 Total pension liability
Service cost $ 1,550,187 $ 1,662,850 $ 1,989,007 $ 2,000,050 $ 2,088,263 Interest 6,869,505 7,177,076 7,385,664 7,644,908 8,029,232 Changes in benefit terms - - - - -
Changes of assumptions (1,650,414) 6,078,010 - (762,647) - Differences between expected and actual experience 1,062,228 512,205 (490,554) 299,589 1,265,886 Benefit payments, including
refunds of employee contributions (4,937,517) (4,997,904) (5,226,953) (5,355,765) (5,803,808) Net change in total pension liability 2,893,989 4,354,227 9,735,174 3,826,135 5,579,573 Total pension liability - beginning 92,079,312 94,973,301 99,327,528 109,062,702 112,888,837 Total pension liability - ending (a) $ 99,327,528 94,973,301 $ 109,062,702 $ 112,888,837 $ 118,468,410 $ Pension fiduciary net position
Contributions - employer 1,515,782 $ 1,895,010 $ 2,034,184 $ 2,265,421 $ 2,665,962 $ Contributions - employee 720,100 788,933 756,795 847,735 989,676 Net investment income 1,670,372 364,679 7,980,374 6,641,333 5,407,865 Benefit payments, including
refunds of employee contributions (4,937,517) (4,997,904) (5,226,953) (5,355,765) (5,803,808) Administrative expense (84,670) (45,842) (108,109) (122,573) (59,018) Other miscellaneous income/ (expense)1 - - - (232,961) 193 Net change in plan fiduciary net position (1,995,124) (1,115,933) 5,436,291 4,043,190 3,200,870 Plan fiduciary net position - beginning
2 75,218,297 76,334,230 73,223,173 78,659,464 82,702,654 Plan fiduciary net position - ending (b) $ 73,223,173 75,218,297 $ 78,659,464 $ 82,702,654 $ 85,903,524 $ Plan net pension liability - ending (a) - (b) $ 26,104,355 19,755,004 $ 30,403,238 $ 30,186,183 $ 32,564,886 $ Plan fiduciary net position as a percentage 79.20% 73.72% 72.12% 73.26% 72.51% of the total pension liability
Covered payroll
3 $ 10,861,205 10,161,824 $ 11,673,945 $ 11,973,479 $ 12,462,034 $ Plan net pension liability as a percentage
of covered payroll 194.40% 240.34% 260.44% 252.11% 261.31% Notes to Schedule:
3 Includes one year’s payroll growth using 2.80% payroll growth assumption for fiscal years ended June 30, 2022 through 2024; 2.75% payroll growth assumption for fiscal years ended June 30, 2018-21; 3.00% payroll growth assumption for fiscal years ended June 30, 2014-17.

Changes of 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.

Changes of Benefit Terms: The figures above generally include any liability impact that may have resulted from voluntary benefit changes that occurred on or before the Measurement Date.

However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the Valuation Date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary.

California Public Employees' Retirement System ("CalPERS") - Miscellaneous Plan 1 During Fiscal Year 2017-18, as a result of Governmental Accounting Standards Board Statement (GASB) No. 75, Accounting and Financial Reporting for Postemployment Benefit Plans Other than Pensions (GASB 75), CalPERS reported its proportionate share of activity related to postemployment benefits for participation in the State of California’s agent OPEB plan. Accordingly, CalPERS recorded a one-time expense as a result of the adoption of GASB 75. Additionally, CalPERS employees participate in various State of California agent pension plans and during Fiscal Year 2017-18, CalPERS recorded a correction to previously reported financial statements to properly reflect its proportionate share of activity related to pensions in accordance with GASB Statement No. 68, Accounting and Financial Reporting for Pensions (GASB 68).

City of Commerce
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios For the Year Ended June 30, 2025
2 Includes any beginning of year adjustment.

Last Ten Fiscal Years
94 Measurement period 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 Total pension liability
Service cost $ 1,971,408 $ 1,956,630 $ 1,927,809 $ 2,054,622 $ 2,093,660 Interest 8,283,613 8,519,425 8,595,249 8,897,361 9,041,219 Changes in benefit terms - - 134,927 - -
Changes of assumptions - 3,703,131 - - -
Differences between expected and actual experience (470,235) (381,995) (1,759,700) 893,471 (1,393,542) Benefit payments, including
refunds of employee contributions (6,258,294) (6,876,834) (7,101,261) (7,371,582) (7,614,586) Net change in total pension liability 3,526,492 3,217,226 5,365,228 4,608,799 2,126,751 Total pension liability - beginning 118,468,410 121,994,902 125,212,128 130,577,356 135,186,155 Total pension liability - ending (a) $ 125,212,128 121,994,902 $ 130,577,356 $ $ 135,186,155 $ 137,312,906 Pension fiduciary net position
Contributions - employer $ 3,010,008 $ 3,280,476 $ 28,816,820 $ 1,817,957 $ 1,414,883 Contributions - employee 826,978 756,081 729,151 772,426 923,064 Net investment income 4,257,013 19,560,972 (9,324,793) 6,969,578 11,106,208 Benefit payments, including
refunds of employee contributions (6,258,294) (6,876,834) (7,101,261) (7,371,582) (7,614,586) Administrative expense (121,103) (87,525) (64,942) (86,262) (97,163) Other miscellaneous income/ (expense)1 - - - - -
Net change in plan fiduciary net position 1,714,602 16,633,170 13,054,975 2,102,117 5,732,406 Plan fiduciary net position - beginning
2 87,618,126 85,903,524 104,251,296 117,306,271 119,408,388 Plan fiduciary net position - ending (b) $ 104,251,296 87,618,126 $ 117,306,271 $ 119,408,388 $ 125,140,794 $ Plan net pension liability - ending (a) - (b) $ 20,960,832 34,376,776 $ 13,271,085 $ 15,777,767 $ 12,172,112 $ Plan fiduciary net position as a percentage 71.82% 83.26% 89.84% 88.33% 91.14% of the total pension liability
Covered payroll
3 $ 11,937,948 11,854,528 $ 10,627,391 $ 11,094,073 $ 11,366,234 $ Plan net pension liability as a percentage
of covered payroll 289.99% 175.58% 124.88% 142.22% 107.09% Notes to Schedule:

Changes of Benefit Terms: The figures above generally include any liability impact that may have resulted from voluntary benefit changes that occurred on or before the Measurement Date.

However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the Valuation Date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary.

Changes of 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 Commerce
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios (Continued) For the Year Ended June 30, 2025
Last Ten Fiscal Years
California Public Employees' Retirement System ("CalPERS") - Miscellaneous Plan 1 During Fiscal Year 2017-18, as a result of Governmental Accounting Standards Board Statement (GASB) No. 75, Accounting and Financial Reporting for Postemployment Benefit Plans Other than Pensions (GASB 75), CalPERS reported its proportionate share of activity related to postemployment benefits for participation in the State of California’s agent OPEB plan. Accordingly, CalPERS recorded a one-time expense as a result of the adoption of GASB 75. Additionally, CalPERS employees participate in various State of California agent pension plans and during Fisca Year 2017-18, CalPERS recorded a correction to previously reported financial statements to properly reflect its proportionate share of activity related to pensions in accordance with GASB Statement No. 68, Accounting and Financial Reporting for Pensions (GASB 68). 2 Includes any beginning of year adjustment.
3 Includes one year’s payroll growth using 2.80% payroll growth assumption for fiscal years ended June 30, 2022 through 2024; 2.75% payroll growth assumption for fiscal years ended June 30, 2018-21; 3.00% payroll growth assumption for fiscal years ended June 30, 2014-17. 95 2015-16 2016-17 2017-18 2018-19 2019-20
Actuarially determined contribution 1,895,010 $ 2,034,184 $ 2,265,421 $ 2,665,962 $ 3,010,008 $ Contributions in relation to
the actuarially determined contribution1 (2,034,184) (1,895,010) (2,265,421) (2,665,962) (3,010,008) Contribution deficiency (excess) $ - $ - $ - $ - $ -
Covered payroll2 $ 11,673,945 10,861,205 $ 11,973,479 $ 12,462,034 $ 11,854,528 $ Contributions as a percentage of covered payroll2 17.45% 17.42% 18.92% 21.39% 25.39% City of Commerce
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions
For the Year Ended June 30, 2025
2 Includes one year’s payroll growth using 2.80 percent growth assumption for fiscal year ended June 30, 2022 through 2024; 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-21; 3.00 percent payroll growth assumption for fiscal years ended June 30, 2014-17.

California Public Employees' Retirement System ("CalPERS") - Miscellaneous Plan Last Ten Fiscal Years
1 Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions. 96 2020-21 2021-22 2022-23 2023-24 2024-25
Actuarially determined contribution 3,280,476 $ 3,587,818 $ 1,817,957 $ 1,414,883 $ 981,564 $ Contributions in relation to
the actuarially determined contribution1 (28,816,820) (3,280,476) (1,817,957) (1,414,883) (981,564) Contribution deficiency (excess) $ (25,229,002) - $ - $ $ - $ - Covered payroll2 $ 10,627,391 11,937,948 $ 11,094,073 $ 11,366,234 $ 11,684,489 $ Contributions as a percentage of covered payroll2 27.48% 271.16% 16.39% 12.45% 8.40% Notes to Schedule:

Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll
Asset valuation method Fair value
Inflation 2.30%
Salary increases Varies by entry age and service
Payroll Growth 2.80%
Investment rate of return
Retirement age
Mortality
City of Commerce
1 Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions.

Required Supplementary Information (Unaudited) (Continued) Schedule of Contributions - Pensions (Continued)
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2024-25 were derived from the June 30, 2022 funding valuation report.

6.80% net of pension plan investment and administrative expenses; includes Inflation.

The probabilities of retirement are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions.

The probabilities of mortality are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. Mortality rates incorporate full generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries.

For the Year Ended June 30, 2025
Last Ten Fiscal Years
California Public Employees' Retirement System ("CalPERS") - Miscellaneous Plan 2 Includes one year’s payroll growth using 2.80 percent growth assumption for fiscal year ended June 30, 2022 through 2025; 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-21; 3.00 percent payroll growth assumption for fiscal years ended June 30, 2014-17. 97 Measurement period 2016-171 2017-18 2018-19 2019-20 2020-21 Total OPEB liability
Service cost 2,234,000 $ 2,300,649 $ 2,029,528 $ 2,529,281 $ 2,548,186 $ Interest 2,294,000 2,509,423 2,386,306 2,361,171 1,834,245 Changes of assumptions (3,068,000) (6,043,482) 5,977,722 (1,405,720) 922,287 Differences between expected and actual experience - (4,522,194) - (2,772,589) - Benefit payments, including refunds (1,666,000) (1,698,028) (1,676,840) (1,721,539) (1,741,680) Net change in total OPEB liability (7,453,632) (206,000) 8,716,716 (1,009,396) 3,563,038 Total OPEB liability - beginning of the year 61,758,000 61,964,000 54,304,368 63,021,084 62,011,688 Total OPEB liability - end of the year (a) $ 54,304,368 61,758,000 $ 63,021,084 $ 62,011,688 $ 65,574,726 $ OPEB fiduciary net position
Contributions - employer 2,166,402 $ 1,698,028 $ 1,679,352 $ 1,724,623 $ 1,744,592 $ Contributions - employee 225,000 172,173
Net investment income 168,198 103,963 705,834
Benefit payments, including refunds (1,666,000) (1,698,028) (1,676,840) (1,721,539) (1,741,680) Administrative expense (6,000) (7,181) (7,348) (10,844) (11,713) Net change in plan fiduciary net position 164,992 719,402 163,362 96,203 697,033 Plan fiduciary net position - beginning of year 2,035,000 2,754,402 2,919,394 3,082,756 3,178,959 Plan fiduciary net position - end of year (b) $ 2,754,402 $ 2,919,394 $ 3,082,756 $ 3,178,959 $ 3,875,992 Plan net OPEB liability - end of year (a) - (b) $ 51,384,974 59,003,598 $ 59,938,328 $ 58,832,729 $ 61,698,734 $ Plan fiduciary net position as a percentage
of the total OPEB liability 4.46% 5.38% 4.89% 5.13% 5.91% Covered employee payroll $ 13,074,368 13,175,000 $ 13,377,980 $ 13,641,362 $ 13,267,936 $ Plan net OPEB liability as a percentage of
covered employee payroll 447.85% 393.02% 448.04% 431.28% 465.02% Notes to Schedule:

Changes of benefit terms: There were no changes of benefit terms in 2024.

Changes of assumptions: In 2024, the accounting discount rate increase from 3.74 percent to 4.01 percent. In 2023, the accounting discount rate increase from 3.65 percent to 3.74 percent. In 2022, the accounting discount rate increase from 2.79 percent to 3.65 percent. In addition, the demographic assumptions and the inflation rate assumption were changed in accordance with the 2002-2019 CalPERS Experience Study and Review of Actuarial Assumptions. In 2021, the accounting discount rate increased from 2.88 percent to 2.79 percent. In 2020, the accounting discount rate decreased from 3.65 percent to 2.88 percent. In 2019, the accounting discount rate decreased from 4.30 percent to 3.65 percent. In 2018, the accounting discount rate increased from 3.97 percent to 4.30 percent. 1 Historical information is presented for measurement periods after GASB 75 implementation in 2016-17. Additional years' information will be displayed as it becomes available.

City of Commerce
Required Supplementary Information (Unaudited)
Schedule of Changes in Net OPEB Liability and Related Ratios For the Year Ended June 30, 2025
Last Ten Fiscal Years
Other Postemployment Benefits ("OPEB")
98 Measurement period 2021-22 2022-23 2023-24
Total OPEB liability
Service cost $ 2,681,620 $ 2,198,169 $ 2,208,203
Interest 1,877,929 2,282,557 2,401,411
Changes of assumptions (5,168,431) (834,174) (3,769,569) Differences between expected and actual experience (1,775,473) 402,546 - Benefit payments, including refunds (1,894,094) (1,917,239) (2,049,915) Net change in total OPEB liability (4,278,449) 1,729,313 (807,324) Total OPEB liability - beginning of the year 65,574,726 61,296,277 63,025,590 Total OPEB liability - end of the year (a) $ 63,025,590 61,296,277 $ 62,218,266 $ OPEB fiduciary net position
Contributions - employer 1,897,101 $ 1,921,107 $ 2,053,891 $ Contributions - employee - - -
Net investment income (510,825) 248,095 409,620
Benefit payments, including refunds (1,894,094) (1,917,239) (2,049,915) Administrative expense (12,519) (12,416) (13,260)
Net change in plan fiduciary net position 239,547 (520,337) 400,336 Plan fiduciary net position - beginning of year 3,355,655 3,875,992 3,595,202 Plan fiduciary net position - end of year (b) $ 3,355,655 $ 3,595,202 $ 3,995,538 Plan net OPEB liability - end of year (a) - (b) $ 59,430,388 57,940,622 $ 58,222,728 $ Plan fiduciary net position as a percentage
of the total OPEB liability 5.47% 5.70% 6.42%
Covered employee payroll $ 12,958,676 13,267,936 $ 15,020,484 $ Plan net OPEB liability as a percentage of
covered employee payroll 436.70% 458.61% 387.62%
Notes to Schedule:

Changes of benefit terms: There were no changes of benefit terms in 2024.

Other Postemployment Benefits ("OPEB")
Changes of assumptions: In 2024, the accounting discount rate increase from 3.74 percent to 4.01 percent. In 2023, the accounting discount rate increase from 3.65 percent to 3.74 percent. In 2022, the accounting discount rate increase from 2.79 percent to 3.65 percent. In addition, the demographic assumptions and the inflation rate assumption were changed in accordance with the 2002-2019 CalPERS Experience Study and Review of Actuarial Assumptions. In 2021, the accounting discount rate increased from 2.88 percent to 2.79 percent. In 2020, the accounting discount rate decreased from 3.65 percent to 2.88 percent. In 2019, the accounting discount rate decreased from 4.30 percent to 3.65 percent. In 2018, the accounting discount rate increased from 3.97 percent to 4.30 percent.

City of Commerce
Required Supplementary Information (Unaudited)
Schedule of Changes in Net OPEB Liability and Related Ratios (Continued) For the Year Ended June 30, 2025
Last Ten Fiscal Years
99 2016-171 2017-18 2018-19 2019-20 2020-21
Actuarially determined contribution 4,715,000 $ 4,975,000 $ 3,805,000 $ 4,051,000 $ 3,870,000 $ Contributions in relation to
the actuarially determined contribution (2,166,402) (1,698,000) (1,679,352) (1,724,623) (1,744,592) Contribution deficiency (excess) 2,548,598 $ 3,277,000 $ 2,125,648 $ 2,326,377 $ 2,125,408 $ Covered employee payroll 13,175,000 $ 13,074,000 $ 13,377,980 $ 13,641,362 $ 13,267,936 $ Contributions as a percentage of covered employee payroll 16.44% 12.99% 12.55% 12.64% 13.15% 1 Historical information is presented only for measurement periods after GASB 75 implementation in 2016-17.

Other Postemployment Benefits ("OPEB")
City of Commerce
Required Supplementary Information (Unaudited)
Schedule of Contributions - Other Postemployment Benefits For the Year Ended June 30, 2025
Last Ten Fiscal Years
100
2021-22 2022-23 2023-24 2024-25
Actuarially determined contribution 4,074,000 $ 4,443,000 $ 4,715,000 $ 5,459,000 $ Contributions in relation to
the actuarially determined contribution (1,897,101) (1,921,107) (2,053,891) (2,159,379) Contribution deficiency (excess) 2,176,899 $ 2,521,893 $ 2,661,109 $ 3,299,621 $ Covered employee payroll 13,267,936 $ 12,958,676 $ 15,020,484 $ 15,510,386 $ Contributions as a percentage of covered employee payroll 14.30% 14.82% 13.67% 13.92% Notes to Schedule:

Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry Age Normal, Level % of pay
Amortization method Level % of pay
Amortization period 18-year fixed period for 2024/25
Asset valuation method
Discount rate
General inflation 2.50%
Medical trend
Mortality CalPERS 2000-2019 Experience Study.

Mortality improvement
City of Commerce
Required Supplementary Information (Unaudited)
Schedule of Contributions - Other Postemployment Benefits (Continued) For the Year Ended June 30, 2025
Last Ten Fiscal Years
Other Postemployment Benefits ("OPEB")
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2024-25 were derived from the June 30, 2024 valuation report.

Non-Medicare - 7.35% for 2027, decreasing to an ultimate rate of 3.45% in 2076.

Medicare (Non-Kaiser) - 6.50% for 2027, decreasing to an ultimate rate of 3.45% in 2076.

Medicare (Kaiser) - 5.45% for 2027, decreasing to an ultimate rate of 3.45% in 2076.

Mortality projected fully generational with Scale MP-2021.

Fair value of assets

5.50%
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102

SUPPLEMENTARY INFORMATION
103
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104
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Intergovernmental - $ 7,300,000 $ 759,519 $ (6,540,481) $ Total revenues 7,300,000 - 759,519 (6,540,481)
EXPENDITURES:

Current:

Public works - 2,185,530 2,446,021 (260,491)
Capital outlay 8,289,175 - 6,421,814 1,867,361
Total expenditures 10,474,705 - 8,867,835 1,606,870

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (3,174,705) - (8,108,316) (4,933,611) OTHER FINANCING SOURCES:

Transfers in - 970,901 970,901 -
Total other financing sources - 970,901 970,901 -
NET CHANGE IN FUND BALANCE $ (2,203,804) - $ (7,137,415) $ (4,933,611) FUND BALANCE:

Beginning of year 8,289,681
End of year $ 1,152,266
City of Commerce
Budgetary Comparison Schedule - General Fund
General City Capital Projects Fund
For the Year Ended June 30, 2025
105
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106

GENERAL FUND
General Fund:

The General Fund is the primary fund used to account for and report all financial resources not accounted for and reported in another fund.

General Operating Fund – The account for primary operating revenues and expenditure of the City not legally restricted as to use. It supports the general operations and administrative functions of the organization.

Measure AA General Fund – To account for revenues collected through a sales tax committed for capital improvement purposes in accordance with Measure AA requirements.
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108
General Measure AA
Operating Fund General Fund Total
ASSETS
Cash and investments 97,799,176 $ 17,787,910 $ 115,587,086 $ Restricted cash and investment 3,529,621 67,109 3,596,730 Receivables:

Accounts - 4,313,147 4,313,147
Interest - 817,207 817,207
Due from other governments 4,491,976 2,881,884 7,373,860 Due from other funds 14,504,522 - 14,504,522
Prepaid items and deposits 468,840 - 468,840
Land held for development 19,535,000 - 19,535,000
Total assets $ 20,736,903 145,459,489 $ 166,196,392 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable 4,446,173 $ 5,738,049 $ 10,184,222 $
Salaries and benefits payable 912,838 - 912,838
Deposits payable 874,513 - 874,513
Retentions payable 1,222,216 - 1,222,216
Total liabilities 6,960,265 6,233,524 13,193,789
Deferred inflows of resources:

Unavailable revenue 979,681 - 979,681
Total deferred inflows of resources 979,681 - 979,681
Fund balances:

Nonspendable 20,003,840 - 20,003,840
Restricted - 3,529,621 3,529,621
Committed 12,796,957 - 12,796,957
Unassigned 115,692,504 - 115,692,504
Total fund balances 12,796,957 139,225,965 152,022,922
Total liabilities, deferred inflows of
resources, and fund balances $ 145,459,489 $ 20,736,903 $ 166,196,392 City of Commerce
Combining Balance Sheet
General Fund
June 30, 2025
109
General Measure AA
Operating Fund General Fund Total
REVENUES:

Taxes $ 9,019,337 37,655,841 $ 46,675,178 $
Casino license tax 30,563,683 30,563,683 -
Licenses and permits 7,283,632 7,283,632 -
Intergovernmental 2,015,616 875,670 2,891,286
Charges for services 2,050,164 2,050,164 -
Activity fees 514,423 514,423 -
Fines, forfeitures, and penalties 1,567,406 1,567,406 - Use of money and property 2,162,165 491,360 2,653,525
Miscellaneous 790,409 371,269 1,161,678
Total revenues 84,603,339 10,757,636 95,360,975
EXPENDITURES:

Current:

General government 17,288,849 17,288,849 -
Community development 395,225 395,225 -
Public safety 28,214,076 28,214,076 -
Public works 10,861,001 6,357,907 17,218,908
Library 3,800,511 3,800,511 -
Parks, recreation and culture 9,980,942 9,980,942 -
Capital outlay 954,870 19,656,016 20,610,886
Debt service:

Principal retirement 345,887 269,906 615,793
Interest and fiscal charges 49,582 76,135 125,717
Total expenditures 71,890,943 26,359,964 98,250,907

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 12,712,396 (15,602,328) (2,889,932) OTHER FINANCING SOURCES (USES):

Transfers in 505,226 505,226 -
Transfers out (3,885,901) (3,885,901) -
Proceeds from sale of assets 303,401 303,401 -
Issuance of lease liabilities 314,626 314,626 -
Issuance of subscription liabilities 258,665 248,271 506,936 Issuance of finance purchase 1,411,537 - 1,411,537
Total other financing sources (uses) (2,503,983) 1,659,808 (844,175) NET CHANGES IN FUND BALANCES 10,208,413 (13,942,520) (3,734,107) FUND BALANCES:

Beginning of year 129,017,552 26,739,477 155,757,029
End of year $ 12,796,957 139,225,965 $ 152,022,922 $
City of Commerce
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances General Fund
For the Year Ended June 30, 2025
110
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Taxes 35,550,278 $ 35,550,278 $ 37,655,841 $ 2,105,563 $ Casino license tax 29,370,000 29,370,000 30,563,683 1,193,683 Licenses and permits 5,433,950 5,433,950 7,283,632 1,849,682 Intergovernmental 388,300 541,585 2,015,616 1,474,031
Charges for services 1,872,797 1,880,996 2,050,164 169,168 Activity fees 188,502 253,639 514,423 260,784
Fines, forfeitures, and penalties 1,308,200 1,308,200 1,567,406 259,206 Use of money and property 1,000,000 1,000,000 2,162,165 1,162,165 Miscellaneous 300,603 300,603 790,409 489,806
Total revenues 75,639,251 75,412,630 84,603,339 8,964,088 EXPENDITURES:

Current:

General government 16,266,859 18,156,544 17,288,849 867,695 Community development 1,208,769 1,212,769 395,225 817,544 Public safety 28,281,781 28,790,868 28,214,076 576,792
Public works 8,754,608 9,609,864 10,861,001 (1,251,137) Library 3,571,101 3,802,453 3,800,511 1,942
Parks, recreation and culture 9,941,609 10,909,245 9,980,942 928,303 Capital outlay 7,000 782,000 954,870 (172,870)
Debt service:

Principal retirement - - 345,887 (345,887)
Interest and fiscal charges - - 49,582 (49,582)
Total expenditures 68,031,727 73,263,743 71,890,943 1,372,800

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 7,380,903 2,375,508 12,712,396 10,336,888 OTHER FINANCING SOURCES (USES):

Transfers in 800,000 800,000 505,226 (294,774)
Transfers out (2,145,000) (3,863,201) (3,885,901) (22,700) Proceeds from sale of assets - - 303,401 303,401
Issuance of lease liabilities - - 314,626 314,626
Issuance of subscription liabilities - - 258,665 258,665 Total other financing sources (uses) (1,345,000) (3,063,201) (2,503,983) 559,218 NET CHANGE IN FUND BALANCE $ 6,035,903 $ (687,693) 10,208,413 $ 10,896,106 FUND BALANCE:

Beginning of year 129,017,552
End of year $ 139,225,965
City of Commerce
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual General Operating Fund
For the Year Ended June 30, 2025
111
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Taxes 8,500,000 $ 8,500,000 $ 9,019,337 $ 519,337 $
Intergovernmental - - 875,670 875,670
Use of money and property - - 491,360 491,360
Miscellaneous - - 371,269 371,269
Total revenues 8,500,000 8,500,000 10,757,636 2,257,636 EXPENDITURES:

Current:

Public works 9,928,852 20,751,566 6,357,907 14,393,659
Capital outlay 11,606,162 34,046,034 19,656,016 14,390,018 Debt service:

Principal retirement 253,060 253,060 269,906 (16,846)
Interest and fiscal charges - - 76,135 (76,135)
Total expenditures 21,788,074 55,050,660 26,359,964 28,690,696

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (13,288,074) (46,550,660) (15,602,328) 30,948,332 OTHER FINANCING SOURCES:

Issuance of subscription liabilities - - 248,271 248,271 Issuance of finance purchase - 1,411,537 - 1,411,537
Total other financing sources - 1,659,808 - 1,659,808
NET CHANGE IN FUND BALANCE $ (46,550,660) (13,288,074) $ (13,942,520) 32,608,140 $ FUND BALANCE:

Beginning of year 26,739,477
End of year $ 12,796,957
City of Commerce
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Measure AA General Fund
For the Year Ended June 30, 2025
112

NONMAJOR

GOVERNMENTAL FUNDS
Housing - To account for the housing activities of the City that were previously accounted for in the low- and moderate-income housing redevelopment agency fund.

Supplemental Law Enforcement - To account for the City’s allocation from the State under Assembly Bill 3229, which supplements frontline law enforcement costs used to supplement existing police services.

State Gas Tax - To account for gasoline allocations made by the State of California. These revenues are restricted by the State to expenditures for street-related purposes only.

Air Quality Management District - To account for clean air fees collected by the State and distributed by the Southern California Air Quality Management District to cities for clean air projects.

Nonmajor Special Revenue Funds:

Special Revenue Funds are used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects.

Pension Obligation Bond - To account for the payment of principal and interest related to the 2021 pension obligation bond issue.

Community Benefits - To account for unpaid past fees collected from Synergy Business Management to assist the Senior Rent Subsidy Program and provide other discounts for the benefit of the senior residents.

Stormwater Management - To account for the revenues and expenditures associated with stormwater management.

Community Development Block Grant (CDBG) - To account for CDBG allocations received and expenditures incurred for allowable projects; primarily home improvements of eligible households.

Art in Public Places - To account for the revenues and expenditures designated for public art projects throughout the City.

Community Center - To account for the payment of principal and interest on the City’s general debt issuances.

Nonmajor Debt Service Funds:

The Debt Service Funds are used to account for and report financial resources that are restricted, committed, or assigned to expenditures for principal and interest.
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Pension
Special Revenue Community Obligation
Funds Center Bonds Total
ASSETS
Cash and investments $ 6,219,611 $ - $ 6,219,611 - $
Cash and investments with fiscal agents - 2,201 - 2,201 Receivables:

Interest 296,554 - 296,554 -
Loans 207,783 - 207,783 -
Due from other governments 89,064 - - 89,064
Land held for development 726,000 - 726,000 -
Total assets $ 7,539,012 $ 2,201 $ 7,541,213 - $
Liabilities:

Accounts payable $ 118,750 $ - $ 118,750 - $
Salaries and benefits payable 2,150 - - 2,150
Due to other funds 120 - - 120
Unearned revenue 157,816 - 157,816 -
Total liabilities 278,836 - 278,836 -
Fund Balances:

Restricted:

Community development projects 60,011 - - 60,011
Public safety 234,032 - 234,032 -
Low and moderate housing 2,228,603 - 2,228,603 -
Transportation 726,767 - 726,767 -
Public works 2,036,654 - 2,036,654 -
Debt service - 2,201 - 2,201
Committed:

Community development 1,974,109 - 1,974,109 -
Total fund balances 7,260,176 2,201 7,262,377 -
Total liabilities and fund balances $ 7,539,012 $ 2,201 $ 7,541,213 - $ Combining Balance Sheet
City of Commerce

LIABILITIES AND FUND BALANCES
June 30, 2025
Nonmajor Governmental Funds
Debt Service Funds
115
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116
Formerly
Nonmajor Fund
Pension General City
Special Revenue Community Obligation Capital Projects
Funds Center Bonds Fund Total
REVENUES:

Licenses and permits 231,230 $ - $ - $ 231,230 $
Intergovernmental 1,883,063 - - 1,883,063
Use of money and property 194,066 1,619 - 195,685
Miscellaneous 49,868 - - 49,868
Total revenues 1,619 2,358,227 - 2,359,846
EXPENDITURES:

Current:

General government 67,212 - - 67,212
Community development 23,876 - - 23,876
Public safety 174,075 - - 174,075
Public works 530,564 - - 530,564
Parks, recreation and culture 346,911 - - 346,911
Capital outlay - - - -
Debt service:

Principal retirement - 470,000 1,525,000 1,995,000
Interest and fiscal charges - 306,862 615,161 922,023
Total expenditures 776,862 1,142,638 2,140,161 4,059,661

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (775,243) 1,215,589 (2,140,161) (1,699,815) OTHER FINANCING SOURCES (USES):

Transfers in 774,719 120 2,140,161 2,915,000
Transfers out (505,226) - - (505,226)
Total other financing sources (uses) (505,106) 774,719 2,140,161 2,409,774 NET CHANGES IN FUND BALANCES 710,483 (524) - 709,959
FUND BALANCES:

Beginning of year, as previously reported 6,549,693 2,725 8,289,681 - 14,842,099 Change in the financial reporting entity
(nonmajor fund to major) - - (8,289,681) - (8,289,681)
Beginning of year, as restated (Note 15) 6,549,693 2,725 - 6,552,418 - End of year $ 2,201 7,260,176 $ - $ - $ 7,262,377 $
City of Commerce
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds
For the Year Ended June 30, 2025
Debt Service Funds
117
Community Air Quality
Supplement Law Development Management
Enforcement State Gas Tax Block Grant District Housing
ASSETS
Cash and investments 234,032 $ 576,356 $ 120 $ 61,347 $ 999,411 $ Receivables:

Interest - - - - 296,554
Loans - - - - 207,783
Due from other governments - 89,064 - - -
Property held for resale - - - - 726,000
Total assets $ 234,032 $ 665,420 $ 120 $ 61,347 $ 2,229,748

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable $ - $ - $ - $ - $ 1,145
Salaries and benefits payable - - - - -
Due to other funds - - 120 - -
Unearned revenue - - - - -
Total liabilities - - 120 - 1,145
Fund Balances:

Restricted:

Community development projects - - - - -
Public safety 234,032 - - - -
Low and moderate housing - - - 2,228,603 -
Transportation 665,420 - - 61,347 -
Public works - - - - -
Committed:

Community development - - - - -
Total fund balances 234,032 665,420 - 61,347 2,228,603
Total liabilities and fund balances $ 234,032 $ 665,420 $ 120 $ 61,347 $ 2,229,748 (Continued)
City of Commerce
Combining Balance Sheet
Nonmajor Special Revenue Funds
June 30, 2025
Special Revenue Funds
118
Art in Community Stormwater Total Special
Public Places Benefits Management Revenue Funds
ASSETS
Cash and investments 1,974,109 $ 64,022 $ 2,310,214 $ 6,219,611 $ Receivables:

Interest - - - 296,554
Loans - - - 207,783
Due from other governments - - - 89,064
Property held for resale - - - 726,000
Total assets $ 64,022 1,974,109 $ 2,310,214 $ 7,539,012 $

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable - $ 4,011 $ 113,594 $ 118,750 $
Salaries and benefits payable - - 2,150 2,150
Due to other funds - - - 120
Unearned revenue - - 157,816 157,816
Total liabilities 4,011 - 273,560 278,836
Fund Balances:

Restricted:

Community development projects - 60,011 - 60,011
Public safety - - - 234,032
Low and moderate housing - - - 2,228,603
Transportation - - - 726,767
Public works - - 2,036,654 2,036,654
Committed:

Community development 1,974,109 - - 1,974,109
Total fund balances 60,011 1,974,109 2,036,654 7,260,176 Total liabilities and fund balances $ 64,022 1,974,109 $ 2,310,214 $ 7,539,012 $ (Concluded)
City of Commerce
Combining Balance Sheet (Continued)
Nonmajor Special Revenue Funds
June 30, 2025
Special Revenue Funds
119
Community Air Quality
Supplement Law Development Management
Enforcement State Gas Tax Block Grant District Housing
REVENUES:

Licenses and permits - $ - $ - $ - $ - $
Intergovernmental 193,665 686,419 - 15,990 -
Use of money and property 6,465 15,921 - 1,695 49,869
Miscellaneous - - - - -
Total revenues 702,340 200,130 - 17,685 49,869
EXPENDITURES:

Current:

General government - - - - -
Community development - - 120 - 18,631
Public safety 174,075 - - - -
Public works - - - - -
Parks, recreation and culture - - - - -
Total expenditures - 174,075 120 - 18,631

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 702,340 26,055 (120) 17,685 31,238 OTHER FINANCING SOURCES (USES):

Transfers in - - 120 - -
Transfers out - (500,000) - (5,226) -
Total other financing sources (uses) (500,000) - 120 (5,226) - NET CHANGES IN FUND BALANCES 26,055 202,340 - 12,459 31,238 FUND BALANCES:

Beginning of year 207,977 463,080 - 48,888 2,197,365
End of year $ 234,032 $ 665,420 $ - $ 61,347 $ 2,228,603 (Continued)
Nonmajor Special Revenue Funds
For the Year Ended June 30, 2025
Special Revenue Funds
City of Commerce
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 120
Art in Community Stormwater Total Special
Public Places Benefits Management Revenue Funds
REVENUES:

Licenses and permits 146,730 $ 84,500 $ - $ 231,230 $
Intergovernmental - - 986,989 1,883,063
Use of money and property 54,531 1,769 63,816 194,066
Miscellaneous - - 49,868 49,868
Total revenues 86,269 201,261 1,100,673 2,358,227
EXPENDITURES:

Current:

General government 67,212 - - 67,212
Community development 5,125 - - 23,876
Public safety - - - 174,075
Public works - - 530,564 530,564
Parks, recreation and culture - 346,911 - 346,911
Total expenditures 346,911 72,337 530,564 1,142,638

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (260,642) 128,924 570,109 1,215,589 OTHER FINANCING SOURCES (USES):

Transfers in - - - 120
Transfers out - - - (505,226)
Total other financing sources (uses) - - - (505,106)
NET CHANGES IN FUND BALANCES (260,642) 128,924 570,109 710,483 FUND BALANCES:

Beginning of year 1,845,185 320,653 1,466,545 6,549,693 End of year 1,974,109 $ 60,011 $ 2,036,654 $ 7,260,176 $ (Concluded)
Special Revenue Funds
City of Commerce
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Special Revenue Funds
For the Year Ended June 30, 2025
121
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Licenses and permits $ - $ - $ 146,730 $ 146,730
Use of money and property - - 54,531 54,531
Total revenues - - 201,261 201,261
EXPENDITURES:

Current:

General Government - 148,410 67,212 (81,198)
Community development - 4,833 5,125 292
Total expenditures - 153,243 72,337 (80,906)
NET CHANGE IN FUND BALANCE $ - $ (153,243) 128,924 $ 282,167 FUND BALANCE:

Beginning of year 1,845,185
End of year $ 1,974,109
City of Commerce
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Art in Public Places Special Revenue Fund
For the Year Ended June 30, 2025
122
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Licenses and permits $ - $ - $ 84,500 $ 84,500
Use of money and property - - 1,769 1,769
Total revenues - - 86,269 86,269
EXPENDITURES:

Current:

Parks, recreation and culture - 350,000 346,911 3,089
Total expenditures - 350,000 346,911 3,089
NET CHANGE IN FUND BALANCE $ - $ (350,000) (260,642) $ 89,358 FUND BALANCE:

Beginning of year 320,653
End of year $ 60,011
City of Commerce
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Community Benefits Special Revenue Fund
For the Year Ended June 30, 2025
123
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Intergovernmental $ - $ 990,000 $ 986,989 $ (3,011)
Use of money and property - 28,635 63,816 35,181
Miscellaneous - - 49,868 49,868
Total revenues 1,018,635 - 1,100,673 82,038
EXPENDITURES:

Current:

Public works - 953,586 530,564 423,022
Total expenditures - 953,586 530,564 423,022
NET CHANGE IN FUND BALANCE $ - $ 65,049 570,109 $ 505,060 FUND BALANCE:

Beginning of year 1,466,545
End of year $ 2,036,654
City of Commerce
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Stormwater Management Special Revenue Fund
For the Year Ended June 30, 2025
124
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Use of money and property $ - $ - $ 1,619 $ 1,619
Total revenues - - 1,619 1,619
EXPENDITURES:

Debt service:

Principal retirement - 470,000 470,000 -
Interest and fiscal charges - 306,862 306,862 -
Total expenditures - 776,862 776,862 -

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES - (776,862) (775,243) 1,619
OTHER FINANCING SOURCES:

Transfers in - - 774,719 774,719
Total other financing sources - - 774,719 774,719
NET CHANGE IN FUND BALANCE $ - $ (776,862) (524) $ 776,338 FUND BALANCE:

Beginning of year 2,725
End of year $ 2,201
City of Commerce
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Community Center Debt Service Fund
For the Year Ended June 30, 2025
125
Original Final Variance with
Budget Budget Actual Final Budget
EXPENDITURES:

Debt service:

Principal retirement $ 1,525,000 - $ $ 1,525,000 $ -
Interest and fiscal charges - 620,247 615,161 5,086
Total expenditures 2,145,247 - 2,140,161 5,086
OTHER FINANCING SOURCES:

Transfers in - 2,140,161 - 2,140,161
Total other financing sources - 2,140,161 - 2,140,161
NET CHANGE IN FUND BALANCE $ (2,145,247) - $ 2,145,247 - $ FUND BALANCE:

Beginning of year -
End of year $ -
City of Commerce
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Pension Obligation Bonds Debt Service Fund
For the Year Ended June 30, 2025
126
Successor Agency Trust Fund - To account for the housing activities of the former community development commission taken over by the Successor Agency.

PRIVATE PURPOSE

TRUST FUNDS
Trust Funds are used to account for the activities of the Redevelopment Obligation Retirement Funds, and other Successor Agency funds, which accumulates resources for obligations previously incurred by the former Commerce Redevelopment Agency.

Private Purpose Trust Funds:

Redevelopment Property Tax Trust Fund - To account for property tax allocated to the Successor Agency to pay the enforceable obligations listed on the Recognized Obligation Payment Schedule ("ROPS"). 127
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128
Redevelopment Successor
Property Tax Agency
Trust Fund Trust Fund Total
ASSETS
Current assets:

Cash and investments 15,243,452 $ - $ 15,243,452 $
Receivables:

Accounts, net - 10,915 10,915
Lease receivable, due in one year - 23,947 23,947
Total current assets 15,243,452 34,862 15,278,314
Noncurrent assets:

Cash and investments with fiscal agents - 988 988
Lease receivable, due in more than one year - 963,295 963,295 Property held for resale 44,407,092 - 44,407,092
Total noncurrent assets 45,371,375 - 45,371,375
Total assets 15,243,452 45,406,237 60,649,689

DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on refunding - 1,691,341 1,691,341
Total deferred outflows of resources - 1,691,341 1,691,341

LIABILITIES
Current liabilities:

Accounts payable - 2,324,945 2,324,945
Salaries and benefits payable - 1,438 1,438
Long-term debt, due within one year - 7,898,181 7,898,181 Total current liabilities 10,224,564 - 10,224,564
Noncurrent liabilities:

Due to City of Commerce - - -
Long-term debt, due in more than one year 24,955,045 - 24,955,045 Total noncurrent liabilities 24,955,045 - 24,955,045
Total liabilities 35,179,609 - 35,179,609

DEFERRED INFLOWS OF RESOURCES
Leases related - 811,777 811,777
Total deferred inflows of resources - 811,777 811,777

NET POSITION
Held in trust for Successor Agency $ 11,106,192 15,243,452 $ 26,349,644 $ City of Commerce
Combining Statement of Fiduciary Net Position
Private Purpose Trust Funds
June 30, 2025
Successor Agency
129
Redevelopment Successor
Property Tax Agency
Trust Fund Trust Fund Eliminations Total
ADDITIONS:

Redevelopment property tax trust fund 8,296,772 $ - $ - $ 8,296,772 $ Investment income 421,074 149,702 - 570,776
Rental income - 428,497 - 428,497
Miscellaneous income - 14,209 - 14,209
Total additions 592,408 8,717,846 - 9,310,254
DEDUCTIONS:

Administrative expenses - 346,135 - 346,135
Interest and fiscal charges - 1,562,294 - 1,562,294
Total deductions 1,908,429 - - 1,908,429
TRANSFERS:

Transfers in - 12,365,917 (12,365,917) -
Transfers out (12,365,917) - 12,365,917 -
Total transfers (12,365,917) 12,365,917 - -
CHANGES IN NET POSITION (3,648,071) 11,049,896 7,401,825 - NET POSITION:

Beginning of year 18,891,523 56,296 18,947,819 -
End of year $ 11,106,192 15,243,452 $ - $ 26,349,644 $
City of Commerce
Combining Statement of Changes in Fiduciary Net Position Private Purpose Trust Funds
For the Year Ended June 30, 2025
Successor Agency
130

STATISTICAL SECTION
131
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132
Finanical Trends:

Net Position by Component 134
Changes in Net Position 136
Fund Balances of Governmental Funds 140
Changes in Fund Balances of Governmental Funds 142
Revenue Capacity:

Assessed Value and Estimated Actual Value of Taxable Property 145 Direct and Overlapping Property Tax Rates 146
Principal Property Tax Payers 148
Property Tax Levies and Collections 149
Card Club Schedules for Revenue Capacity
Card Club License Fee by Category 150
Direct and Overlapping Card Club Rates 152
Principal Card Club Remitter 153
Debt Capacity:

Ratios of Outstanding Debt by Type 154
Ratio of General Bonded Debt Outstanding 155
Direct and Overlapping Debt 157
Legal Debt Margin Information 158
Demographic and Economic Information:

Demographic and Economic Statistics 160
Principal Employers 161
Operating Information:

Full-time and Part-time City Employees 162
Capital Asset Statistics 163
For the Year Ended June 30, 2024
Index to the Statistical Section
City of Commerce
133
2016 2017 2018 2019 2020
Governmental activities:

Net investment in capital assets $ 69,045,438 $ 84,719,037 $ 81,609,386 $ 82,699,502 $ 87,603,633 Restricted 1,695,259 1,706,688 1,876,124 2,048,261 2,038,137 Unrestricted 44,026,277 42,451,641 7,083,848 11,612,066 4,908,821 Total governmental activities
net position 114,766,974 128,877,366 90,569,358 96,359,829 94,550,591 Business-type activities:

Net investment in capital assets 12,812,420 12,305,690 11,644,934 13,413,120 13,066,918 Unrestricted (deficit) (6,730,545) (6,948,259) (16,115,502) (14,607,134) (15,245,267) Total business-type activities
net position (deficit) 6,081,875 5,357,431 (4,470,568) (1,194,014) (2,178,349) Primary government:

Net investment in capital assets 81,857,858 97,024,727 93,254,320 96,112,622 100,670,551 Restricted 1,695,259 1,706,688 1,876,124 2,048,261 2,038,137 Unrestricted (deficit) 37,295,732 35,503,382 (9,031,654) (2,995,068) (10,336,446) Total primary government
net position $ 120,848,849 $ 134,234,797 $ 86,098,790 $ 95,165,815 $ 92,372,242 Source: City of Commerce Finance Department
Fiscal Year
City of Commerce
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
134
2021 2022 2023 2024 2025
Governmental activities:

Net investment in capital assets $ 83,964,506 $ 80,664,261 $ 82,888,826 $ 85,825,193 $ 106,117,281 Restricted 2,098,713 2,422,583 10,532,686 16,561,635 16,977,993 Unrestricted 2,725,740 43,817,601 61,339,590 71,524,808 65,277,419 Total governmental activities
net position 88,788,959 126,904,445 154,761,102 173,911,636 188,372,693 Business-type activities:

Net investment in capital assets 13,584,738 18,237,717 19,289,578 17,679,317 16,121,755 Unrestricted (deficit) (15,339,653) (18,380,192) (19,305,776) (20,595,645) (21,886,039) Total business-type activities
net position (deficit) (1,754,915) (142,475) (16,198) (2,916,328) (5,764,284) Primary government:

Net investment in capital assets 97,549,244 98,901,978 102,178,404 103,504,510 122,239,036 Restricted 2,098,713 2,422,583 10,532,686 16,561,635 16,977,993 Unrestricted (deficit) (12,613,913) 25,437,409 42,033,814 50,929,163 43,391,380 Total primary government
net position $ 87,034,044 $ 126,761,970 $ 154,744,904 $ 170,995,308 $ 182,608,409 Source: City of Commerce Finance Department
City of Commerce
Net Position by Component (Continued)
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
135
2016 2017 2018 2019 2020
Expenses:

Governmental activities:

General government $ 16,097,044 $ 17,143,378 $ 19,705,680 $ 22,493,477 $ 14,923,956 Public safety 18,994,377 20,528,705 21,462,109 21,457,403 22,513,602 Public works 10,080,047 7,753,735 13,955,387 13,705,539 16,343,439 Community development 4,550,938 3,111,106 3,189,480 2,112,054 2,444,173 Parks and Recreation 9,917,064 11,936,131 12,835,675 13,083,293 12,836,798 Library 3,210,975 3,774,862 4,275,731 3,627,221 4,719,709 Interest on long-term debt 4,196,186 1,870,823 2,036,161 365,743 347,944 Total governmental activities expenses 67,046,631 66,118,740 77,460,223 76,844,730 74,129,621 Business-type activities:

Transit 5,322,991 4,919,636 6,191,022 5,747,313 7,123,822 CNG/LNG 1,564,009 1,657,378 2,027,056 1,941,685 2,283,888 Water 711,572 695,715 637,396 611,098 482,240
Cable Television 258,221 301,827 359,704 - -
Total business-type activities expenses 7,856,793 7,574,556 9,215,178 8,300,096 9,889,950 Total primary government expenses 74,903,424 73,693,296 86,675,401 85,144,826 84,019,571 Program revenues:

Governmental activities:

Charges for services:

General government - - - - -
Public safety 1,481,520 1,560,967 1,536,732 1,639,854 1,355,125 Public works 3,395,581 2,753,032 3,027,305 4,063,390 4,470,153 Community development 20,462 89,950 40,000 88,882 339,948 Library 18,940 10,638 17,380 5,155 12,581
Parks and recreation 594,096 647,552 674,476 2,858,857 1,188,201 Operating grants and contributions 2,208,545 2,549,722 2,757,719 4,106,368 5,477,203 Capital grants and contributions 18,508,737 12,503,266 4,620,744 290,533 295,545 Total governmental activities
program revenues 26,227,881 20,115,127 12,674,356 13,053,039 13,138,756 Business-type activities:

Charges for services:

Transit - - - - -
CNG/LNG 1,398,775 1,480,555 1,930,926 1,483,555 2,871,693 Water 845,000 845,000 845,000 845,000 845,000
Cable Television 49,402 53,950 53,748 - -
Operating grants and contributions 3,140,870 2,801,867 3,138,934 6,046,775 3,748,452 Capital grants and contributions - - - - -
Total business-type activities
program revenues 5,434,047 5,181,372 5,968,608 8,375,330 7,465,145 Total primary government
program revenues 31,661,928 25,296,499 18,642,964 21,428,369 20,603,901 Net revenues (expenses):

Governmental activities (40,818,750) (46,003,613) (64,785,867) (63,791,691) (60,990,865) Business-type activities (2,422,746) (2,393,184) (3,246,570) 75,234 (2,424,805) Total net revenues (expenses) $ (43,241,496) $ (48,396,797) $ (68,032,437) $ (63,716,457) $ (63,415,670) Source: City of Commerce Finance Department
City of Commerce
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
136
2021 2022 2023 2024 2025
Expenses:

Governmental activities:

General government $ 19,230,660 $ 12,888,535 $ 17,061,923 $ 16,528,267 $ 18,426,470 Public safety 23,367,758 24,691,709 24,304,792 27,821,008 28,147,984 Public works 12,613,431 9,664,523 16,442,212 14,532,596 22,399,581 Community development 3,626,129 3,252,267 4,965,052 5,308,728 592,402 Parks and Recreation 6,659,835 7,330,089 9,579,307 10,843,894 11,674,460 Library 3,067,205 2,539,074 3,532,582 3,890,316 3,884,185 Interest on long-term debt 327,503 679,503 1,065,145 906,354 1,026,161 Total governmental activities expenses 68,892,521 61,045,700 76,951,013 79,831,163 86,151,243 Business-type activities:

Transit 7,059,103 9,731,130 10,440,610 10,904,732 10,374,611 CNG/LNG 2,725,050 2,906,790 4,179,857 2,934,201 2,902,782 Water 215,971 197,721 128,392 212,107 119,712
Cable Television - - - - -
Total business-type activities expenses 10,000,124 12,835,641 14,748,859 14,051,040 13,397,105 Total primary government expenses 78,892,645 73,881,341 91,699,872 93,882,203 99,548,348 Program revenues:

Governmental activities:

Charges for services:

General government - - - 606,771 809,102
Public safety 1,392,108 1,507,851 2,192,585 1,422,520 1,558,010 Public works 6,422,295 6,446,246 7,423,325 5,999,141 6,967,911 Community development 536,975 261,721 500,865 473,057 136,138 Library 45,514 12,053 16,118 9,396
Parks and recreation 363,964 702,740 1,549,472 1,216,862 596,126 Operating grants and contributions 4,632,926 9,590,128 5,129,104 5,144,051 9,720,037 Capital grants and contributions 9,999 92,991 5,997 7,825 2,497,819 Total governmental activities
program revenues 13,358,267 18,647,191 16,813,401 14,886,345 22,294,539 Business-type activities:

Charges for services:

Transit - - 122,333 - 50,070
CNG/LNG 3,215,859 2,858,149 4,005,725 2,895,747 2,727,409 Water 845,000 845,000 774,583 771,492 771,492
Cable Television - - - - -
Operating grants and contributions 4,931,427 9,828,325 6,467,805 6,874,935 7,315,494 Capital grants and contributions - 532,271 2,662,122 - 37,935 Total business-type activities
program revenues 8,992,286 14,063,745 14,032,568 10,542,174 10,902,400 Total primary government
program revenues 22,350,553 32,710,936 30,845,969 25,428,519 33,196,939 Net revenues (expenses):

Governmental activities (55,534,254) (42,398,509) (60,137,612) (64,944,818) (63,856,704) Business-type activities (1,007,838) 1,228,104 (716,291) (3,508,866) (2,494,705) Total net revenues (expenses) $ (56,542,092) $ (41,170,405) $ (60,853,903) $ (68,453,684) $ (66,351,409) Source: City of Commerce Finance Department
Fiscal Year
City of Commerce
Changes in Net Position (Continued)
Last Ten Fiscal Years
(accrual basis of accounting)
137
2016 2017 2018 2019 2020
General revenues and other changes in net position:

Governmental activities:

Taxes:

Casino license tax $ 25,012,715 $ 25,780,700 $ 28,217,260 $ 27,658,745 $ 20,260,767 Property taxes 2,322,486 2,481,617 4,680,877 4,563,560 4,548,892 Sales tax 27,795,167 26,979,330 28,702,600 32,166,106 27,005,166 Franchise taxes 1,052,568 952,432 1,024,506 1,089,138 1,055,508 Transient occupancy taxes 2,843,656 3,063,406 3,269,164 3,145,415 2,613,232 Motor vehicle in lieu, unrestricted 1,177,552 1,242,958 6,877 6,272 10,306 Investment income 5,372,963 2,413,906 2,410,372 576,337 495,961 Miscellaneous revenues (expenses) 1,179,131 (1,137,872) 3,370,780 1,661,221 1,819,994 Extraordinary gain (loss) - (8,515,224) - 6,308,116 -
Transfers (2,160,387) (1,662,472) (1,656,133) (2,000,747) (1,425,000) Total governmental activities 64,595,851 60,114,005 61,511,079 75,174,163 56,384,826 Business-type activities:

Investment income - 6,268 5,219 8,689 15,470
Miscellaneous revenues (expenses) - - - - -
Transfers 2,160,387 1,662,472 1,656,133 2,000,747 1,425,000 Special Items - - 1,191,884 - -
Total business-type activities 2,160,387 1,668,740 1,661,352 3,201,320 1,440,470 Total primary government 66,756,238 61,782,745 63,172,431 78,375,483 57,825,296 Changes in net position
Governmental activities 23,777,101 14,110,392 (3,274,788) 11,382,472 (4,606,039) Business-type activities (262,359) (724,444) (1,585,218) 3,276,554 (984,335) Total primary government $ 13,385,948 23,514,742 $ (4,860,006) $ 14,659,026 $ (5,590,374) $ Source: City of Commerce Finance Department
City of Commerce
Changes in Net Position (Continued)
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
138
2021 2022 2023 2024 2025
General revenues and other changes in net position:

Governmental activities:

Taxes:

Casino license tax $ 8,848,685 $ 26,653,916 $ 31,572,956 $ 31,436,082 $ 30,563,683 Property taxes 5,184,180 4,766,079 4,627,743 5,110,125 6,353,396 Sales tax 29,411,394 40,590,324 40,480,501 38,642,346 35,672,946 Franchise taxes 1,114,535 1,271,376 1,598,267 1,613,037 1,592,865 Transient occupancy taxes 1,717,154 2,634,216 3,139,541 3,164,668 3,055,971 Motor vehicle in lieu, unrestricted 9,438 14,814 12,688 15,289 - Investment income 481,994 1,834,343 4,566,293 2,441,907 2,163,787 Miscellaneous revenues (expenses) 3,020,230 2,313,868 809,831 787,653 819,290 Extraordinary gain (loss) 1,410,012 273,000 1,186,724
Transfers (1,425,000) 221,583 - - -
Total governmental activities 49,772,622 80,573,519 87,994,544 83,211,107 80,221,938 Business-type activities:

Investment income 6,272 320,470 817,087 156,062 235,845 Miscellaneous revenues (expenses) - 63,866 25,206
Transfers 1,425,000 - - - -
Special Items - - - - -
Total business-type activities 1,431,272 384,336 842,293 156,062 235,845 Total primary government 51,203,894 80,957,855 88,836,837 83,367,169 80,457,783 Changes in net position
Governmental activities (5,761,632) 38,175,010 27,856,932 18,266,289 16,365,234 Business-type activities 423,434 1,612,440 126,002 (3,352,804) (2,258,860) Total primary government $ 39,787,450 (5,338,198) $ 27,982,934 $ 14,913,485 $ 14,106,374 $ Source: City of Commerce Finance Department
Fiscal Year
City of Commerce
Changes in Net Position (Continued)
Last Ten Fiscal Years
(accrual basis of accounting)
139
2016 2017 2018 2019 2020
General fund:

Nonspendable $ 11,474,577 $ 9,529,236 $ 9,348,695 $ 17,036,179 $ 22,002,880 Restricted - - 2,796,801 - 2,913,821
Committed - - - - -
Unassigned 52,400,666 55,268,246 59,647,840 53,018,952 39,498,623 Total general fund $ 64,797,482 63,875,243 $ $ 72,851,932 68,996,535 $ $ 64,415,324 All other governmental funds:

Nonspendable - $ - $ - $ 6,409,884 $ - $
Restricted 43,739,182 40,512,561 2,092,277 2,566,806 3,972,844 Committed 15,622,958 14,994,703 16,059,636 19,580,713 18,617,305 Unassigned (deficit) (23,495,816) (18,936,253) (11,755,176) (7,928,488) (1,407,626) Total all other governmental funds 35,866,324 $ 36,571,011 $ 6,396,737 $ 20,628,915 $ 21,182,523 $ Source: City of Commerce Finance Department
City of Commerce
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
140
2021 2022 2023 2024 2025
General fund:

Nonspendable $ 20,230,513 $ 20,279,764 $ 20,069,590 $ 19,831,422 $ 20,003,840 Restricted 3,309,427 2,900,437 3,024,041 3,267,339 3,529,621 Committed - - 26,739,477 - 12,796,957
Unassigned 37,888,039 57,281,481 87,773,147 105,918,791 115,692,504 Total general fund $ 80,461,682 61,427,979 $ $ 155,757,029 110,866,778 $ 152,022,922 $ All other governmental funds:

Nonspendable - $ - $ - $ - $ - $
Restricted 5,280,588 5,815,236 6,073,685 11,696,321 8,630,461 Committed 20,922,336 26,671,452 34,246,929 3,145,778 1,974,109 Unassigned (deficit) (915,970) 8,691,715 (465) - (2,189,927) Total all other governmental funds 25,286,954 $ 41,178,403 $ 40,320,149 $ 14,842,099 $ 8,414,643 $ Source: City of Commerce Finance Department
City of Commerce
Fund Balances of Governmental Funds (Continued)
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
141
2016 2017 2018 2019 2020
Revenues:

Taxes $ 35,191,429 $ 34,719,747 $ 37,684,024 $ 40,970,492 $ 35,233,104 Casino license tax 25,012,715 25,780,700 28,217,260 27,658,745 20,060,305 Licenses and permits 3,094,043 2,593,315 2,811,786 3,533,999 3,937,691 Fines and forfeitures 1,500,460 1,571,605 1,554,112 1,645,009 1,367,724 Investment income 5,376,602 2,442,142 2,410,372 576,337 495,961 Rental income 65,804 107,310 256,456 2,650,024 1,770,027 Intergovernmental 10,533,532 15,151,211 13,918,486 5,607,209 5,779,860 Charges for services 442,178 331,457 394,724 361,727 110,177 Activity Fees 387,652 433,274 433,813 458,610 231,657
Other 956,288 1,232,109 3,940,461 2,290,119 1,750,094
Total revenues 82,560,703 84,362,870 91,621,494 85,752,271 70,736,600 Expenditures
Current:

General government 15,910,208 16,416,508 16,594,325 19,905,892 17,482,692 Public safety 18,717,286 20,010,785 20,871,826 21,424,472 22,513,602 Public works 29,308,208 21,221,420 12,614,426 13,332,466 17,680,994 Community development 5,510,293 3,015,986 3,084,391 3,391,322 3,328,344 Library 3,640,566 3,764,624 3,808,597 4,080,542 4,185,953 Parks, recreation and culture 9,563,855 10,613,121 10,804,067 11,853,187 11,220,212 Capital outlay - 4,301,838 - - -
Debt service:

Principal retirement 46,690,000 3,925,000 4,075,000 355,000 370,000 Interest and fiscal charges 4,954,788 2,243,768 2,098,092 430,414 412,803 Payment to bond escrow agent - 5,050,414 - - -
Total expenditures 134,295,204 81,211,212 83,302,976 74,773,295 77,194,600 Excess (deficiency) of
revenues over (under)
expenditures (51,734,501) 3,151,658 8,318,518 10,978,976 (6,458,000) Other financing sources (uses):

Transfers in 2,259,463 1,676,324 1,535,053 2,164,640 5,520,251 Transfers out (4,419,850) (3,201,056) (3,191,186) (4,262,726) (6,945,251) Issuance of debt - - - - -
Issuance of bonds - - - - -
Gain on property held for resale - - - - -
Proceeds from sale of assets - - - - -
Payment to bond escrow agent - (32,637,606) - - -
Total other financing
sources (uses) (2,160,387) (1,524,732) (34,293,739) (2,098,086) (1,425,000) Extraordinary/ Special Items
Successor Agency land
aquired by City - - 6,409,884 - -
Net change in fund balances $ (53,894,888) $ 1,626,926 $ (25,975,221) $ 15,290,774 $ (7,883,000) Ratio of debt service expenditures
to noncapital expenditures 38.5% 7.6% 14.2% 1.1% 1.0%
Source: City of Commerce Finance Department
(modified accrual basis of accounting)
Last Ten Fiscal Years
Changes in Fund Balances of Governmental Funds
City of Commerce
Fiscal Year
142
2021 2022 2023 2024 2025
Revenues:

Taxes $ 37,436,701 $ 49,276,809 $ 49,846,052 $ 48,530,176 $ 46,675,178 Casino license tax 9,049,147 26,653,916 31,572,956 31,436,082 30,563,683 Licenses and permits 5,660,787 5,453,634 7,693,813 6,574,738 7,514,862 Fines and forfeitures 1,392,108 1,553,365 2,204,638 1,438,638 1,567,406 Investment income 504,795 1,851,079 4,754,686 2,852,191 2,849,210 Rental income 1,690,928 634,348 - - -
Intergovernmental 3,412,514 8,427,721 3,726,875 3,106,606 5,533,868 Charges for services 1,268,381 2,665,125 2,756,672 2,562,317 2,050,164 Activity Fees 43,829 272,415 359,118 527,460 514,423
Other 4,662,651 2,336,248 839,260 914,980 1,211,546
Total revenues 65,121,841 99,124,660 103,754,070 97,943,188 98,480,340 Expenditures
Current:

General government 15,495,586 42,406,606 15,151,561 14,880,371 17,356,061 Public safety 23,389,362 24,716,722 24,308,966 27,821,553 28,388,151 Public works 11,008,151 9,741,623 14,616,394 11,925,095 20,195,493 Community development 3,450,539 3,662,523 4,791,751 5,135,427 419,101 Library 2,921,776 2,887,478 3,029,171 3,482,413 3,800,511 Parks, recreation and culture 5,531,729 7,275,835 7,097,239 9,190,122 10,327,853 Capital outlay - 5,361,900 - 7,603,439 27,032,700
Debt service:

Principal retirement 390,000 486,291 472,776 699,446 2,610,793 Interest and fiscal charges 392,612 641,488 975,630 969,253 1,047,740 Payment to bond escrow agent - 339,089 - - -
Total expenditures 62,579,755 92,157,655 75,805,388 81,707,119 111,178,403 Excess (deficiency) of
revenues over (under)
expenditures 2,542,086 6,967,005 27,948,682 16,236,069 (12,698,063) Other financing sources (uses):

Transfers in 2,439,538 9,317,962 2,600,078 2,448,161 4,391,127 Transfers out (3,864,538) (9,096,379) (2,600,078) (2,448,161) (4,391,127) Issuance of debt - - 1,426,398 - 2,233,099
Issuance of bonds 27,875,000 - - - -
Gain on property held for resale - 273,000 1,186,724 - - Proceeds from sale of assets - - - - 303,401
Payment to bond escrow agent - - - - -
Total other financing
sources (uses) (1,425,000) 28,369,583 1,186,724 1,426,398 2,536,500 Extraordinary/ Special Items
Successor Agency land
aquired by City - - - - -
Net change in fund balances $ 1,117,086 $ 35,336,588 $ 29,135,406 $ 17,662,467 $ (10,161,563) Ratio of debt service expenditures
to noncapital expenditures 1.3% 1.6% 2.1% 2.3% 4.3%
Source: City of Commerce Finance Department
City of Commerce
Changes in Fund Balances of Governmental Funds (Continued) Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
143
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144
Fiscal Year Taxable Total
Ended Assessed Direct Tax
June 30 Secured Unsecured Value Rate
2016 4,128,859 $ 663,524 $ 4,792,383 $ 0.068%
2017 4,411,177 648,456 5,059,633 0.068%
2018 4,592,262 666,905 5,259,168 0.068%
2019 4,706,339 702,582 5,408,921 0.068%
2020 5,054,122 720,534 5,774,656 0.068%
2021 5,384,842 704,478 6,089,320 0.068%
2022 5,534,390 676,463 6,210,853 0.068%
2023 5,885,461 724,227 6,609,687 0.068%
2024 6,304,730 813,537 7,118,267 0.068%
2025 6,784,493 861,538 7,646,031 0.068%
Sources:

1. HDL 2023-24 ACFR Statistical Reports

2. County of Los Angeles Department of Auditor-Controller NOTE:

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

City of Commerce
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
(in thousands of dollars)
City
145
2015/16 2016/17 2017/18 2018/19 2019/20
Basic Levy (1) 1.00000 1.00000 1.00000 1.00000 1.00000
Cerritos Community College District - - - - -
Downey Unified School District - - - - -
LA CCD DS 2008 Series F - - - - -
LA Community College District 0.03575 0.03596 0.04599 0.04621 0.02717 LAUSD 0.12971 0.13110 0.12219 0.12323 0.12552
MWD 0.00350 0.00350 0.00350 0.00350 0.00350
Montebello Unified School District 0.08715 0.14705 0.13514 0.13921 0.09306 Total Direct & Overlapping (2) Tax Rates 1.25611 1.31761 1.30682 1.31215 1.24925 City's Share of 1% Levy Per Prop 13 (3) 0.06793 0.06793 0.06793 0.06793 0.06793 Redevelopment Rate (4) - - - - -
Total Direct Rate (5) 0.06817 0.06817 0.06815 0.06832 0.06813 Sources:

1. HDL 2023-24 ACFR Statistical Reports

2. County of Los Angeles Department of Auditor-Controller City of Commerce
Direct and Overlapping Property Tax Rates
(Rate per $100 of assessed value)
Last Ten Fiscal Years
(3) City's Share of 1% Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the city. The ERAF portion of the City's Levy has been subtracted where known. (4) Redevelopment Rate is based on the largest RDA tax rate area and only includes rate(s) from indebtedness adopted prior to 1989 per California State statute. RDA direct and overlapping rates are applied only to the incremental property values. The approval of ABX1 26 eliminated Redevelopment from the State of California for the fiscal year 2012/13 and years thereafter. (5) Total Direct Rate is the weighted average of all individual direct rates applied by the City/Agency preparing the statistical section information and excludes revenues derived from aircraft. Beginning in 2013/14 the Total Direct Rate no longer includes revenue generated from the former redevelopment tax rate areas. Challenges to recognized enforceable obligations are assumed to have been resolved during 2012/13. For the purposes of this report, residual revenue is assumed to be distributed to the City/Agency in the same proportions as general fund revenue. (1) In 1978, California voters passed Proposition 13 which set the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds. (2) Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all city property owners.
146
2020/21 2021/22 2022/23 2023/24 2024/25
Basic Levy (1) 1.00000 1.00000 1.00000 1.00000 1.00000
Cerritos Community College District - - - - -
Downey Unified School District - - - - -
LA CCD DS 2008 Series F - - - - -
LA Community College District 0.04016 0.04376 0.02488 0.06023 0.05136 LAUSD 0.13993 0.11323 0.12107 0.12422 0.12802
MWD 0.00350 0.00350 0.00350 0.00350 0.00700
Montebello Unified School District 0.09706 0.09031 0.12770 0.11275 0.09160 Total Direct & Overlapping (2) Tax Rates 1.28065 1.25080 1.27715 1.30070 1.27798 City's Share of 1% Levy Per Prop 13 (3) 0.06793 0.06793 0.06793 0.06793 0.06793 Redevelopment Rate (4) - - - - -
Total Direct Rate (5) 0.06814 0.06817 0.06815 0.06815 0.06812 Sources:

1. HDL 2023-24 ACFR Statistical Reports

2. County of Los Angeles Department of Auditor-Controller City of Commerce
Direct and Overlapping Property Tax Rates (Continued)
(Rate per $100 of assessed value)
Last Ten Fiscal Years
(1) In 1978, California voters passed Proposition 13 which set the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds. (2) Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all city property owners.
(3) City's Share of 1% Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the city. The ERAF portion of the City's Levy has been subtracted where known. (4) Redevelopment Rate is based on the largest RDA tax rate area and only includes rate(s) from indebtedness adopted prior to 1989 per California State statute. RDA direct and overlapping rates are applied only to the incremental property values. The approval of ABX1 26 eliminated Redevelopment from the State of California for the fiscal year 2012/13 and years thereafter. (5) Total Direct Rate is the weighted average of all individual direct rates applied by the City/Agency preparing the statistical section information and excludes revenues derived from aircraft. Beginning in 2013/14 the Total Direct Rate no longer includes revenue generated from the former redevelopment tax rate areas. Challenges to recognized enforceable obligations are assumed to have been resolved during 2012/13. For the purposes of this report, residual revenue is assumed to be distributed to the City/Agency in the same proportions as general fund revenue. 147
Percent of Percent of
Total City Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Value Taxpayer Value Value
Craig Realty Group Citadel LLC $ 325,189,941 4.48% Craig Realty Group Citadel LLC $ 3.81% 186,325,010 Dart Warehouse Corp
(Pending Appeals on Parcels) 225,651,614 2.27% AMB Institutional Alliance Fund I LP 176,735,106 3.21% Liberty Property LP 170,751,646 1.75% California Commerce Club Inc. 100,045,196 2.29% Proglogis LP 165,057,590 1.73% LIT Commerce Distribution Center LLC 92,500,925 1.98% Rexford Industrial Realty LP 131,461,593 1.63% Rreef America Reit II Corporation 87,059,909 1.69% Rexford Industrial-5300 Sheila LLC
(Pending Appeals on Parcels) 127,289,641 1.55% Prologis USLV NEWCA 6 LLC 81,892,726 1.53% AMB Institutional Alliance Fund II LP 125,931,081 1.54% VON'S Companies Inc 71,102,506 1.39% California Commerce Club Inc. 118,848,793 1.50% 99 Cents Only Stores 63,345,184 1.31% Rreef America Reit II Corporation 112,679,108 1.40% TELACU 60,946,011 1.17% LIT Commerce Distribution Center LLC 109,135,421 1.38% Terreno Garfield LLC 54,763,391 1.17% $ 19.23% 1,611,996,428 $ 19.55% 974,715,964
The amounts shown above include assessed value data for both the City and the Successor Agency.

Sources:

1. HDL 2023-24 ACFR Statistical Reports

2. County of Los Angeles Department of Auditor-Controller 2024/25 2015/16
Current Year and Nine Years Ago
City of Commerce
Principal Property Tax Payers
148
Fiscal Taxes Levied Collections in
Year Ended for the Percent Subsequent Percent
June 30 Fiscal Year Amount of Levy Years Amount of Levy 2016 $ 1,838,006 $ 1,811,369 98.55% 28,534 $ 1,839,903 100.10% 2017 1,814,622 1,792,768 98.80% 50,388 1,843,156 101.57% 2018 1,951,337 1,936,177 99.22% 65,548 2,001,725 102.58% 2019 2,204,661 2,260,554 102.54% 9,655 2,270,209 102.97% 2020 2,028,219 2,010,999 99.15% 26,875 2,037,874 100.48% 2021 2,079,925 2,102,809 101.10% 3,991 2,106,800 101.29% 2022 2,222,252 2,127,092 95.72% 99,151 2,226,243 100.18% 2023 2,180,356 2,223,028 101.96% 56,479 2,279,507 104.55% 2024 2,301,968 2,358,447 102.45% - 2,358,447 102.45%
2025 2,367,728 2,284,441 96.48% 83,287 2,367,728 100.00% Sources:

1. City of Commerce Finance Department

2. County of Los Angeles Assessor
Last Ten Fiscal Years
Property Tax Levies and Collections
City of Commerce
Fiscal Year of Levy Total Collections to Date
Collected within the
149
2016 2017 2018 2019 2020
Gross Card Room --
Gaming Revenue $ 24,883 $ 25,661 $ 28,097 $ 27,539 $ 19,960 Monthly License Fee 120 120 120 120 100
Total $ 25,003 $ 25,781 $ 28,217 $ 27,659 $ 20,060
Monthly Percentage applied (a) (a) (a) (a) (a)
Source: City of Commerce - Finance Department
City of Commerce
Card Club License Fee by Category
Last Ten Calendar Years
(in thousands of dollars)
Notes: The Tax is based upon the following formula as provided for in the agreement between the City and the Commerce Casino.

Each licensee (in this case, the Commerce Casino) shall pay to the city a monthly license fee of ten thousand dollars plus an amount based upon the total monthly gross revenue of the card game business licensed, according to the schedule presented on the next page. (a) The percentage varies depending on the monthly gross revenue. Detailed information is available upon request from the City of Commerce Finance Department.

Calendar Year
150
2021 2022 2023 2024 2025
Gross Card Room --
Gaming Revenue $ 8,959 $ 26,534 $ 31,453 $ 31,316 $ 30,444 Monthly License Fee 90 120 120 120 120
Total $ 9,049 $ 26,654 $ 31,573 $ 31,436 $ 30,564
Monthly Percentage applied (a) (a) (a) (a) (a)
Source: City of Commerce - Finance Department
City of Commerce
(a) The percentage varies depending on the monthly gross revenue. Detailed information is available upon request from the City of Commerce Finance Department.

Each licensee (in this case, the Commerce Casino) shall pay to the city a monthly license fee of ten thousand dollars plus an amount based upon the total monthly gross revenue of the card game business licensed, according to the schedule presented on the next page.

Notes: The Tax is based upon the following formula as provided for in the agreement between the City and the Commerce Casino.

Card Club License Fee by Category (Continued)
Last Ten Calendar Years
(in thousands of dollars)
Calendar Year
151
Monthly Gross Card Club Revenue 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 First $0 to $1,600,000 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% Next $1,600,001 to $8,500,000 13.2% 13.2% 13.2% 13.2% 13.2% 13.2% 13.2% 13.2% 13.2% 13.2% Next $8,500,001 to $12,000,000 13.8% 13.8% 13.8% 13.8% 13.8% 13.8% 13.8% 13.8% 13.8% 13.8% Next $12,000,001 to $16,000,000 14.4% 14.4% 14.4% 14.4% 14.4% 14.4% 14.4% 14.4% 14.4% 14.4% Over $16,000,000 13.2% 13.2% 13.2% 13.2% 13.2% 13.2% 13.2% 13.2% 13.2% 13.2% Average Rate 12.9%
Source: City of Commerce - Finance Department
Notes: The Tax is based upon the above formula as provided for in the agreement between the City and the Commerce Casino.

City of Commerce
Direct and Overlapping Card Club Rates
Last Ten Fiscal Years
152
Tax Percentage Tax Percentage
Tax Remitter Liability Rank of Total Liability Rank of Total Commerce Casino $ 30,443,683 1 100.00% $ 24,882,715 1 100.00% Total $ 30,443,683 100.00% $ 24,882,715 100.00%
Source: City of Commerce - Finance Department
City of Commerce
Principal Card Club Remitter
Current Year and Nine Years Ago
2025 2016
153
Fiscal Year Pension Tax Total Total Percentage Debt
Ended Obligation Allocation Finance Governmental Primary of Personal Per June 30 Bonds Bonds 1 Purchase Leases Subscriptions Activities Government Income 2 Capita 2 2016 -$ 55,109,280 $ - $ -$ -$ 55,109,280 $ $ 27.18% 4,198 55,109,280 2017 - 51,124,046 - - - 51,124,046 51,124,046 24.91% 3,913 2018 - 9,993,812 - - - 9,993,812 9,993,812 4.93% 765
2019 - 9,578,578 - - - 9,578,578 9,578,578 4.49% 736
2020 - 9,148,344 - - - 9,148,344 9,148,344 3.94% 711
2021 - 8,698,110 - - - 8,698,110 8,698,110 3.48% 680
2022 27,875,000 8,227,876 - 128,389 - 36,231,265 36,231,265 13.50% 2,984 2023 27,875,000 7,742,642 - 123,292 - 35,740,934 35,740,934 13.02% 2,970 2024 27,875,000 7,232,408 - 1,097,928 202,316 36,407,652 36,407,652 12.13% 3,003 2025 26,350,000 6,702,174 1,236,261 1,136,382 544,907 35,969,724 35,969,724 11.21% 2,961 Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements. 1 The City issued over $72 million of tax allocation bonds in 2007 (not all was new monies). 2 These ratios are calculated using personal income and population for the prior calendar year.

Sources:

1. HDL 2023-24 ACFR Statistical Reports

2. City of Commerce Finance Department
Governmental Activities
City of Commerce
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
154
Fiscal Year Pension Tax Percent of
Ended Obligation Allocation Assessed Per
June 30 Bonds Bonds Total Value1 Capita
2016 - $ 51,124,046 $ 51,124,046 $ 0.97% 3,895
2017 - 9,993,812 9,993,812 0.18% 765
2018 - 9,578,578 9,578,578 0.17% 733
2019 - 9,148,344 9,148,344 0.15% 703
2020 - 8,698,110 8,698,110 0.14% 676
2021 27,875,000 8,227,876 36,102,876 0.55% 2,822
2022 27,875,000 7,742,642 35,617,642 0.50% 2,934
2023 27,875,000 7,232,408 35,107,408 0.46% 2,917
2024 26,350,000 6,702,174 33,052,174 0.43% 2,726
2025 26,350,000 6,702,174 33,052,174 0.43% 2,721
Source: City of Commerce - Finance Department

General bonded debt is debt payable with governmental fund resources and general obligation bonds recorded in enterprise funds (of which, the City has none).
1 Assessed value has been used because the actual value of taxable property is not readily available in the State of California.

City of Commerce
Ratio of General Bonded Debt Outstanding
Last Ten Fiscal Years
(In Thousands, except Per Capita)
Outstanding General Bonded Debt
155
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156
Gross Bonded Debt
Balance
Percent Applicable to
City Net Bonded Debt
Total Direct Debt 35,969,724 $ 100.000% $ 35,969,724
Metropolitan Water District 17,155,000 0.188% 32,251
Los Angeles Unified School District 11,745,405,000 0.055% 6,459,973 Los Angeles City Community College District 4,919,505,000 0.644% 31,681,612 Montebello Unified School District 228,369,179 30.932% 70,639,154 Total Overlapping Debt 16,910,434,179 108,812,990
Total Direct and Overlapping Debt 16,946,403,903 $ $ 144,782,714 2024/25 Assessed Valuation: 3,968,772,926 $
Debt to Assessed Valuation Ratios: Direct Debt 0.91%
Overlapping Debt 2.74%
Total Debt 3.65%
Source: California Municipal Statistics
Note: Overlapping governments are those that coincide, at least in part, with geographic boundaries of the city. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the property taxpayers of the City of Commerce. This process recognizes that, when considering the government's ability to issue and repay long-term debt, the entire debt burden borne by the property taxpayers should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government.

City of Commerce
Direct and Overlapping Debt
June 30, 2025
157
2016 2017 2018 2019 2020
Assessed valuation $ 4,792,383,111 $ 5,059,632,808 $ 5,259,167,690 $ 5,408,920,657 $ 5,774,656,000 Conversion percentage 25% 25% 25% 25% 25%
Adjusted assessed valuation 1,198,095,778 1,264,908,202 1,314,791,923 1,352,230,164 1,443,664,000 Debt limit percentage 15% 15% 15% 15% 15%
Debt limit 179,714,367 189,736,230 197,218,788 202,834,525 216,549,600 Total net debt applicable to limit:

General obligation bonds 55,109,280 51,124,046 9,993,812 9,578,578 9,148,344 Legal debt margin $ 124,605,087 $ 138,612,184 $ 187,224,976 $ 193,255,947 $ 207,401,256 Total debt applicable to the limit
as a percentage of debt limit 30.7% 26.9% 5.1% 4.7% 4.2% Sources:

1. City of Commerce Finance Department

2. HDL 2023-24 ACFR Statistical Reports

3. County of Los Angeles Department of Auditor-Controller The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision was enacted when assessed valuation was based upon 25% of market value. Effective with the 1981-82 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The computations shown above reflect a conversion of assessed valuation data for each fiscal year from the current full valuation perspective to the 25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local governments located within the state.

Fiscal Year
City of Commerce
Legal Debt Margin Information
Last Ten Fiscal Years
158
2021 2022 2023 2024 2025
Assessed valuation $ 6,089,319,551 $ 6,210,852,946 $ 6,609,687,340 $ 7,118,266,894 $ 7,646,030,931 Conversion percentage 25% 25% 25% 25% 25%
Adjusted assessed valuation 1,522,329,888 1,552,713,237 1,652,421,835 1,779,566,724 1,911,507,733 Debt limit percentage 15% 15% 15% 15% 15%
Debt limit 228,349,483 232,906,985 247,863,275 266,935,009 286,726,160 Total net debt applicable to limit:

General obligation bonds 8,698,110 8,227,876 7,742,642 7,232,408 6,702,174 Legal debt margin $ 219,651,373 $ 224,679,109 $ 240,120,633 $ 259,702,601 $ 280,023,986 Total debt applicable to the limit
as a percentage of debt limit 3.8% 3.5% 3.1% 2.7% 2.3%
Sources:

1. City of Commerce Finance Department

2. HDL 2023-24 ACFR Statistical Reports

3. County of Los Angeles Department of Auditor-Controller The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision was enacted when assessed valuation was based upon 25% of market value. Effective with the 1981-82 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The computations shown above reflect a conversion of assessed valuation data for each fiscal year from the current full valuation perspective to the 25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local governments located within the state.

Fiscal Year
City of Commerce
Legal Debt Margin Information (Continued)
Last Ten Fiscal Years
159
City of Commerce
Demographic and Economic Statistics
Last Ten Calendar Years
Personal Per Capita
Calendar Income Personal Unemployment
Year Population (1) (in thousands) (2) Income (3) Rate (4) 2015 13,127 $ 202,739 $ 15,444 9.8%
2016 13,064 205,233 15,709 7.7%
2017 13,067 202,639 15,507 6.1%
2018 13,021 213,295 16,380 6.7%
2019 12,868 231,904 18,021 5.3%
2020 12,792 250,173 19,556 12.8%
2021 12,140 268,439 22,112 7.7%
2022 12,036 274,582 22,813 5.3%
2023 12,124 300,161 24,758 5.4%
2024 12,146 320,754 26,408 3.7%
Sources:

1. HDL 2023-24 ACFR Statistical Reports

2. State Department of Finance

3. U.S. Bureau of Economic Analysis

4. State of California Employment Development Department 160
City of Commerce
Principal Employers
Current Year and Nine Years Ago
Percent of Percent of
Number of Total Number of Total
Employer Employees Employment Employees Employment
The Commerce Casino & Hotel 2,148 4.07% 2,448 3.77%
Parsec, Inc. 943 1.79%
ONTRAC 942 1.78%
County of Los Angeles 800 1.52% 2,500 3.85%
Wine Warehouse 758 1.44% 379 0.58%
Mission Foods 647 1.23%
BNSF Railway Company 601 1.14%
Fedex Ground Package System, INC 380 0.72%
Monogram Aerospace Fasteners 344 0.65%
4 Earth Farms 343 0.65%
American Internation Industries 998 1.54%
99 Cents Only Stores #914 539 0.83%
Smart & Final Stores LLC 508 0.78%
Gibson Overseeas, Inc. 395 0.61%
Unified Grocers Inc. 377 0.58%
UPS Ground Freight, Inc. 351 0.54%
OnTrac 350 0.54%
"Total Employment" as used above represents the total employment of all employers located within City limits.

Sources:

1.City of Commerce Finance Department

2. State of California Employment Development Department 2025 2016
161
City of Commerce
Full-time and Part-time City Employees
by Function
Last Ten Fiscal Years
Function 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 General government 39 39 38 38 39 28 30 33 36 34
Public safety 1 - 1 - - - - - - - -
Community services 28 29 28 21 11 11 22 15 17 22
Public Works & Development Services 13 17 21 26 55 43 51 53 54 43 Park & Recreation 136 136 135 139 122 113 182 121 186 194 Library Services 39 39 39 43 45 42 27 36 42 44
Transportation 34 34 34 40 33 35 53 64 67 71
Total 289 295 295 307 305 272 365 322 402 408
1 Police and fire services were provided by the County.

Source: City of Commerce Annual Adopted Budget
162
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Police:

Stations - - - - - - - - - -
Fire:

Fire stations 3 3 3 3 3 3 3 3 3 3
Public services:

Streets (miles) 133.80 133.80 133.80 133.80 133.80 133.80 133.80 133.80 133.80 133.80 Streetlights 3,193 3,193 3,193 3,193 3,193 3,193 3,193 3,193 3,193 3,193 Traffic signals 80 80 80 80 80 80 80 80 80 80
Parks and recreation:

Parks 4 4 4 4 4 4 4 4 4 4
Community centers 2 2 2 2 2 2 2 2 3 4
Water:

Water mains (miles) 173.90 173.90 173.90 173.90 173.90 173.90 173.90 173.90 173.90 173.90 Maximum daily capacity
(thousands of gallons) 12,850 12,850 12,850 12,850 12,850 12,850 12,850 12,850 12,850 12,850 Wastewater:

Sanitary sewers (miles) 181.75 181.75 181.75 181.75 181.75 181.75 181.75 181.75 181.75 181.75 Storm sewers (miles) 58.50 58.50 58.50 58.50 58.50 58.50 58.50 58.50 58.50 58.50 Maximum daily treatment capacity
(thousands of gallons) 7,015 7,015 7,015 7,015 7,015 7,015 7,015 7,015 7,015 7,015 Library:

Libraries 4 4 4 4 4 4 4 4 4 4
Source: City of Commerce Annual Adopted Budget
City of Commerce
Capital Asset Statistics
by Function
Last Ten Fiscal Years
Fiscal Year
163
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164