Covina City Council
January 20, 2026

CITY OF COVINA

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2025
See accompanying Notes to Financial Statements.
(29)
Other Total
General Park Governmental Governmental
Fund Measure W ARPA Development Funds Funds

REVENUES
Property Taxes 18,999,802 $ - $ - $ - $ 629,705 $ 19,629,507 $ Sales Tax, Intergovernmental 20,036,945 - - - - 20,036,945 Transient Occupancy Taxes 157,193 - - - - 157,193
Property Transfer Taxes 251,463 - - - - 251,463
Business License Taxes 421,764 - - - 1,535 423,299
Utility User Taxes 6,315,245 - - - - 6,315,245
Franchise Taxes 2,489,668 - - - - 2,489,668
Licenses and Permits 1,535,642 - - - - 1,535,642
Intergovernmental 1,254,534 9,313,975 440,910 2,878,392 8,769,586 22,657,397 Charges for Services 4,498,393 - - - 418,552 4,916,945
Fines and Forfeits 781,877 - - - - 781,877
Special Assessments - - - - 1,110,586 1,110,586
Investment Earnings 2,938,604 744,220 - - 532,756 4,215,580 Other 957,564 - - - 266,128 1,223,692
Total Revenues 60,638,694 10,058,195 440,910 2,878,392 11,728,848 85,745,039

EXPENDITURES
Current:

General Government 2,957,806 - - - - 2,957,806
Public Safety - 37,469,096 407,483 - 1,145,140 39,021,719 Public Works 2,705,633 - - - 4,778,764 7,484,397
Culture and Recreation 5,061,918 - - - 133,609 5,195,527 Community Development 8,740,267 - 27,632 215,128 - 8,983,027 Transit - - - - 1,225,853 1,225,853
Redevelopment and Housing - - - - 458,452 458,452
Capital Outlay 785,452 - 5,795 6,476,420 5,001,074 12,268,741 Debt Service:

Principal Retirement 2,334,893 - - - 345,000 2,679,893
Interest and Fiscal Charges 1,100,610 - - - 204,142 1,304,752 Total Expenditures 60,370,223 785,452 440,910 6,691,548 13,292,034 81,580,167

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 9,272,743 268,471 - (3,813,156) 4,164,872 (1,563,186)

OTHER FINANCING SOURCES
(USES)
Transfers In 285,590 - - 919,155 612,923 1,817,668
Transfers Out - (2,774,628) - - (285,591) (3,060,219)
Lease Proceeds 42,122 - - - - 42,122
Total Other Financing
Sources (Uses) - (2,446,916) - 919,155 327,332 (1,200,429) NET CHANGE IN FUND BALANCES 9,272,743 (2,178,445) - (2,894,001) 2,964,443 (1,235,854) Fund Balances (Deficits) - Beginning
of Year, as Previously Reported 16,112,310 39,288,907 - (384,364) 13,793,919 68,810,772 Correction of Error - (974,084) - - 974,084 -
Fund Balances (Deficits) - Beginning
of Year, as Restated 16,112,310 38,314,823 - (384,364) 14,768,003 68,810,772

FUND BALANCES (DEFICITS) -
END OF YEAR $ 25,385,053 36,136,378 $ - $ (3,278,365) $ 13,532,149 $ 71,775,215 $

CITY OF COVINA

RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES,

EXPENDITURES, AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2025
See accompanying Notes to Financial Statements.
(30)
Net Change in Fund Balances - Governmental Funds $ 2,964,443 Amounts reported for governmental activities in the statement of activities are different because:

Governmental funds report capital outlays as expenditures and do not include capital contributions. However, in the statement of activities, the costs of those assets are allocated over their estimated useful lives as depreciation expense and capital contributions are recognized as revenue. This is the amount by which capital outlay exceeded depreciation expense in the current period and the amount of capital contributions received.

Capital Outlay $ 20,190,086
Deletions (2,961)
Depreciation Expense 14,381,429 (5,805,696)
The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums, discounts, and similar items when the debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. These amounts are the net effect of these differences in the treatment of long-term debt and related items.

Leases 3,921
Subscriptions 127,850
Principal Payments 2,679,893
Amortization Premium on Bonds 11,559 2,823,223
Pension expenditures reported in the governmental funds includes the annual required contributions. In the statement of activities, pension expense includes the change in the net pension liability, and related changes in pension amounts for deferred outflows of resources and deferred inflows of resources. 334,370 Other postemployment benefit expenditures reported in the governmental funds includes payment of premiums for the current year. In the statement of activities, OPEB expense includes the change in the net other postemployment benefit liability and OPEB related deferred inflows of resources. (630,296) Accrued interest is interest due on long-term debt payable. This is the net change in accrued interest for the current period.

Changes in Interest Payable for the Current Year 1,802
Internal service funds are used by management to charge costs of activities involved in rendering services to departments within the City. The changes in net position of the internal service funds are included in the statement of activities. 326,757
Compensated absences are not reported in the governmental funds until such amounts become due and payable. 770,968
Certain revenues in the governmental funds are deferred because they are not collected within the prescribed time period after year-end. However, the revenues are included on the accrual basis used in the government-wide statements. This amount represents the change during the fiscal year. 3,045,097 Change in Net Position of Governmental Activities as Reported on the Statement of Activities $ 24,017,793

CITY OF COVINA

STATEMENT OF NET POSITION

PROPRIETARY FUNDS
JUNE 30, 2025
See accompanying Notes to Financial Statements.
(31)
Governmental
Activities
Other Total Internal
Enterprise Enterprise Service
ASSETS Water Utility Sewer Funds Funds Funds
Current Assets:

Cash and Investments 17,596,550 $ 3,242,027 $ 1,578,740 $ 22,417,317 $ 17,799,347 $ Accounts Receivable, Net 1,951,438 - 360,758 2,312,196 84,944 Interest Receivable - 20,745 715 21,460 245
Lease Receivable - - 71,671 71,671 21,654
Due from Other Governments - 37,975 - 37,975 -
Prepaid Items 5,235 9,733 12,563 27,531 73,732
Inventories 93,057 - - 93,057 69,436
Total Current Assets 19,646,280 3,310,480 2,024,447 24,981,207 18,049,358 Noncurrent Assets:

Advance to Theater Fund - 2,511,929 - 2,511,929 -
Lease Receivable - - 220,973 220,973 -
Capital Assets:

Capital Assets, Not Depreciated/Amortized 622,668 - 17,696 640,364 - Capital Assets, Depreciated/Amortized, Net 43,929,339 11,762,796 8,032,706 63,724,841 3,799,210 Total Noncurrent Assets 44,552,007 14,274,725 8,271,375 67,098,107 3,799,210 Total Assets 64,198,287 17,585,205 10,295,822 92,079,314 21,848,568

DEFERRED OUTFLOWS OF RESOURCES
Deferred Amount on Refunding 50,284 - - 50,284 -
Deferred Amount on OPEB Plans 192,880 37,109 30,693 260,682 107,662 Deferred Amount on Pension Plans 692,124 197,582 142,807 1,032,513 356,038 Total Deferred Outflows of Resources 885,004 284,975 173,500 1,343,479 463,700

LIABILITIES
Current Liabilities:

Accounts Payable 491,509 63,426 100,607 655,542 535,332 Accrued Liabilities 12,053 - 10,000 22,053 -
Deposits Payable 597,340 - 745,962 1,343,302 -
Interest Payable 112,353 45,669 28,207 186,229 19,793
Unearned Revenue 85,957 - - 85,957 -
Compensated Absences 183,547 58,269 35,770 277,586 78,148 Lease Payable 3,565 - - 3,565 23,307
Claims Payable - - - - 2,177,000
Pension Obligation Bonds Payable 234,094 78,114 38,683 350,891 102,448 Bonds Payable 976,921 905,000 - 1,881,921 -
Total Current Liabilities 2,697,339 1,150,478 959,229 4,807,046 2,936,028 Noncurrent Liabilities:

Compensated Absences 277,559 104,810 79,564 461,933 124,973 Advance from Sewer Fund - - 2,511,929 2,511,929 -
Pension Bonds Payable 4,312,591 1,439,063 712,635 6,464,289 1,887,333 Bonds Payable 12,665,834 3,855,000 - 16,520,834 -
Claims Payable - - - - 6,347,139
Net OPEB Liability 247,833 1,185,442 193,415 1,626,690 539,123 Net Pension Liability 629,951 2,206,699 455,311 3,291,961 1,135,160 Total Noncurrent Liabilities 20,648,125 6,276,657 3,952,854 30,877,636 10,033,728 Total Liabilities 23,345,464 7,427,135 4,912,083 35,684,682 12,969,756

DEFERRED INFLOWS OF RESOURCES
Deferred Amounts on OPEB Plans 128,318 31,643 21,078 181,039 60,989 Deferred Amounts on Leases - - 253,977 253,977 17,738
Deferred Amount on Refunding - 100,478 - 100,478 -
Total Deferred Inflows of Resources 228,796 31,643 275,055 535,494 78,727

NET POSITION
Net Investment in Capital Assets 30,897,902 8,800,501 8,050,402 47,748,805 3,743,753 Unrestricted 10,611,129 1,610,901 9,453,812 (2,768,218) 5,520,032 Total Net Position 41,509,031 $ 10,411,402 $ 5,282,184 $ 57,202,617 9,263,785 $ Some amounts reported for business-type activities in the statement of activities are different to reflect the consolidation of internal service fund activities related to enterprise funds (1,354,142) Net Position of Business-Type Activities $ 55,848,475
Business-Type Activities

CITY OF COVINA

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2025
See accompanying Notes to Financial Statements.
(32)
Governmental
Activities
Other Total Internal
Enterprise Enterprise Service
Water Utility Sewer Funds Funds Funds

OPERATING REVENUES
Water Sales $ 12,822,849 $ - $ - $ 12,822,849 $ -
Charges for Services and Motor
Pool Charges - - 123,200 123,200 9,001,595
Environmental Fees - - 1,155,789 1,155,789 -
Sewer Fees 2,914,224 - - 2,914,224 -
Fire Line Fees 557,130 - 557,130 - -
Information Technology Charges - - - - -
Total Operating Revenues 13,379,979 2,914,224 1,278,989 17,573,192 9,001,595

OPERATING EXPENSES
General and Administrative 2,766,473 2,466,612 902,591 6,135,676 8,100,360 Vehicle and Equipment Operation - - - - 1,129,697
Utility Billing 8,449 - - 8,449 -
Customer Service 443,357 - 443,357 - -
Sales Promotion 69 - - 69 -
Source and Supply - 4,156,350 4,156,350 - -
Production and Storage 1,632,686 - 1,632,686 - -
Transmission and Distribution 1,798,561 - 1,798,561 - - Street Sweeping - - 174,928 174,928 -
Environmental Services - - 230,146 230,146 -
Industrial Waste - - 46,504 46,504 -
Waste Management - - 345,726 345,726 -
Depreciation 1,713,669 416,422 234,412 2,364,503 516,326 Total Operating Expenses 12,519,614 2,883,034 1,934,307 17,336,955 9,746,383 OPERATING INCOME (LOSS) 31,190 860,365 (655,318) 236,237 (744,788)

NONOPERATING REVENUES (EXPENSES)
Investment Income 1,282,686 181,986 78,559 1,543,231 523 Interest Expense (382,355) (175,525) (58,263) (616,143) (48,123) Rental Income - - 88,134 88,134 -
Total Nonoperating Revenues
(Expenses) 6,461 900,331 108,430 1,015,222 (47,600)
INCOME (LOSS) BEFORE TRANSFERS 37,651 1,760,696 (546,888) 1,251,459 (792,388)

TRANSFERS
Transfers In - - - - 1,346,142
Transfers Out (12,761) (89,745) (1,085) (103,591) -
Total Transfers (12,761) (89,745) (1,085) (103,591) 1,346,142 CHANGE IN NET POSITION 1,747,935 (52,094) (547,973) 1,147,868 553,754 Fund Balances - Beginning of Year,
as Previously Reported 39,695,053 10,444,535 5,817,245 8,675,749 Correction of Error 18,961 66,043 12,912 34,282
Fund Balances - Beginning of Year,
as Restated 39,761,096 10,463,496 5,830,157 8,710,031
NET POSITION - END OF YEAR $ 41,509,031 $ 10,411,402 $ 5,282,184 $ 9,263,785 Some amounts reported for business-type activities in the statement of activities are different to reflect the consolidation of internal service fund activities related to enterprise funds 226,996 Net Position of Business-Type Activities $ 1,374,864
Business-Type Activities

CITY OF COVINA

STATEMENT OF CASH FLOWS

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2025
See accompanying Notes to Financial Statements.
(33)
Governmental
Activities
Other Total Internal
Enterprise Enterprise Service
Water Utility Sewer Funds Funds Funds

CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from customers $ 13,073,933 $ 2,924,022 $ 1,277,956 $ 17,275,911 $ - Cash Received from User Departments - - - - 9,020,220
Cash Payments to Suppliers of Goods
and Services (7,703,012) (1,478,993) (889,624) (10,071,629) (7,470,191) Cash Payments to Employees for Services (3,333,778) (915,048) (644,231) (4,893,057) (1,503,826) Net Cash Provided (Used) by
Operating Activities 2,037,143 529,981 (255,899) 2,311,225 46,203

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Cash Received from Other Funds 119,963 - - 119,963 1,346,142 Cash Paid to Other Funds (12,761) (89,745) (1,085) (103,591) - Net Cash Provided (Used) by Noncapital
Financing Activities (12,761) 30,218 (1,085) 16,372 1,346,142

CASH FLOWS FROM CAPITAL AND

RELATED FINANCING ACTIVITIES
Acquisition of Capital Assets (2,929,521) (688,636) (114,530) (3,732,687) (1,606,970) Cash Received - Leases - - 135,981 135,981 -
Principal Paid - Leases (3,511) - - (3,511) (38,935)
Principal Paid (1,417,842) (962,558) (158,370) (2,538,770) (101,717) Interest and Debt Issuance Costs (395,395) (129,626) (59,372) (584,393) (48,487) Net Cash Used by Capital and
Related Financing Activities (4,746,269) (1,780,820) (196,291) (6,723,380) (1,796,109)

CASH FLOWS FROM INVESTING ACTIVITIES
Investment Income 1,282,686 181,986 78,174 1,542,846 -
NET CHANGE IN CASH AND CASH EQUIVALENTS (1,439,201) (1,038,635) (375,101) (2,852,937) (403,764) Cash and Cash Equivalents - Beginning of Year 19,035,751 4,280,662 1,953,841 25,270,254 18,203,111 CASH AND CASH EQUIVALENTS - END OF YEAR $ 17,596,550 $ 3,242,027 $ 1,578,740 $ 22,417,317 $ 17,799,347 Business-Type Activities

CITY OF COVINA

STATEMENT OF CASH FLOWS (CONTINUED)

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2025
See accompanying Notes to Financial Statements.
(34)
Governmental
Activities
Other Total Internal
Enterprise Enterprise Service
Water Utility Sewer Funds Funds Funds

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

OPERATING ACTIVITIES
Operating Income (Loss) $ 31,190 860,365 $ $ (655,318) $ 236,237 $ (744,788) Adjustments to Reconcile Operating Income (Loss)
to Net Cash Provided (Used) by Operating Activities:

Depreciation 1,713,669 416,422 234,412 2,364,503 516,326 Changes in Operating Assets, Deferred Outflows
of Resources, Liabilities, and Deferred Inflows of
Resources:
(Increase) Decrease in:

Accounts Receivable (306,046) - (1,033) (307,079) 18,190 Lease Receivable - - - - (21,654)
Due from Other Governments - 9,798 - 9,798 435
Inventory (46,044) - - (46,044) (5,560)
Prepaid Items (1,978) (6,478) (11,446) (19,902) (20,153) Deferred Outflows of Resources of
OPEB Plan 185,698 53,042 31,194 269,934 70,055
Deferred Outflows of Resources of
Pension Plans 479,003 138,623 86,155 703,781 251,894
Increase (Decrease) in:

Accounts Payable (703,224) (12,337) (67,399) (782,960) 34,866 Accrued Liabilities 7,990 - - 7,990 -
Deposits Payable 29,121 - 206,950 236,071 -
Unearned Revenue 58,322 - - 58,322 -
Deferred Inflows of Resources of
OPEB Plan (36,561) (10,444) (6,142) (53,147) (13,793)
Deferred Inflows of Resources Leases - - (77,044) (77,044) 17,738 Compensated Absences (21,263) 3,786 14,159 (3,318) (6,668) Net OPEB Liability 19,244 (32,329) 5,050 (8,035) 16,627 Net Pension Liability (201,153) (61,292) (15,437) (277,882) (114,758) Claims Payable - - - - 47,446
Net Cash Provided (Used) by
Operating Activities 2,037,143 $ 529,981 $ (255,899) $ 2,311,225 $ 46,203 $ Business-Type Activities

CITY OF COVINA

STATEMENT OF FIDUCIARY NET POSITION

FIDUCIARY FUNDS
JUNE 30, 2025
See accompanying Notes to Financial Statements.
(35)
Other
Postemployment
Private- Benefit Custodial
Purpose Trust Trust Fund Funds
ASSETS
Cash and Investments 1,120,161 $ 1,625,067 $ 875 $
Accounts Receivable - - 1,105
Interest Receivable 6,404 - -
Capital Assets, Not Being Depreciated 148,765 - -
Total Assets 1,275,330 1,625,067 1,980

LIABILITIES
Accounts Payable and Accrued Liabilities 36 - 1,980
Noncurrent Liabilities:

Due Within One Year 643 - -
Due in More Than One Year 32 - -
Total Liabilities 711 - 1,980

NET POSITION
Held for OPEB - 1,625,067 -
Held for Dissolution of Community
Redevelopment Agency 1,274,619 - -
Total Net Position 1,274,619 $ 1,625,067 $ - $

CITY OF COVINA

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

FIDUCIARY FUNDS
YEAR ENDED JUNE 30, 2025
See accompanying Notes to Financial Statements.
(36)
Other
Postemployment
Private- Benefit Custodial
Purpose Trust Trust Fund Funds

ADDITIONS
Property Tax Revenue $ 34,834 $ - $ -
Charges for Services 13,839 - -
Contributions - Employer - 100,000 -
Investment Earnings 28,879 130,391 -
Gain on Sale of Property 2,711,268 - -
Business Licenses Collected from
Property Owners - - 9,007
Total Additions 2,788,820 230,391 9,007

DEDUCTIONS
General and Administrative 24,170 - 9,007
Program Expenses 5,107,988 - -
Total Deductions 5,132,158 - 9,007
CHANGE IN NET POSITION (2,343,338) 230,391 -
Net Position - Beginning of Year 3,617,957 1,394,676 -
NET POSITION - END OF YEAR $ 1,274,619 $ 1,625,067 $ -

THIS PAGE INTENTIONALLY LEFT BLANK

CITY OF COVINA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(38)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Financial Reporting Entity
The financial statements of the City of Covina (the City) include the financial activities of the City, the Covina Public Financing Authority, and the Covina Housing Authority. Their financial operations are closely related, and the City Council has a continuing responsibility over the entities. The responsibility is determined based on budget adoption, taxing authority, funding, and appointments of the governing board. Blended component units, although legally separate entities, are part of the City’s operations and, therefore, data from these units are combined with data of the City.

Since the City Council acts as the Board of Directors and can impose its will on the Covina Public Financing Authority and the Covina Housing Authority, the City is the primary government, and the other two entities are component units. Additionally, since the governing boards of the City and the two other component units are the same, there is a potential for the component units to provide specific financial benefits to or impose specific financial burdens on the City. Therefore, the financial statements of the City and the two component units are blended.

The City of Covina was incorporated in 1901 as a General Law City. The City provides a broad range of services to its citizens, including general government, public safety, streets, sanitation and health, culture and park facilities. and social services.

The Covina Redevelopment Agency (the Agency) was established in 1969, pursuant to the state of California, Health and Safety Code, Section 33000. Its purpose is to prepare and carry out plans for the improvement, rehabilitation, and development of blighted areas within the territorial limits of the City of Covina. On June 28, 2011, Assembly Bill X1 26 (AB X1 26), the Dissolution bill was enacted. On December 29, 2011, the California Supreme Court upheld the constitutionality of AB X1 26, and all redevelopment agencies in California were dissolved by operation of law effective February 1, 2012. The legislation provides for successor agencies and oversight boards that are responsible for overseeing the dissolution process and wind down of redevelopment activity. On January 11, 2012, the City adopted a resolution declaring its intent to serve as the Successor Agency and on January 30, 2012, the City Council adopted a resolution to retain the Housing assets and functions of the former redevelopment agency, and the Housing Authority of the City will serve as the Housing Successor Agency.

CITY OF COVINA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(39)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) A. Financial Reporting Entity (Continued)
The Successor Agency to the Covina Redevelopment Agency (SACRA) was created to serve as a custodian for the assets and to wind down the affairs of the former Agency.

The SACRA is a separate public entity from the City, subject to the direction of an Oversight Board. In general, the SACRA’s assets can only be used to pay enforceable obligations in existence at the date of dissolution (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments). In future fiscal years, the SACRA will only be allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of the former Agency until all enforceable obligations of the former Agency have been paid in full and all assets have been liquidated. The SACRA is a fiduciary component unit and is reported as a fiduciary fund (private-purpose trust fund).

The Covina Public Financing Authority (the Authority) is a joint powers authority organized pursuant to the state of California Government Code, Section 6500. The Authority exists under a Joint Exercise of Power Agreement between the City of Covina and the Covina Redevelopment Agency. Its purpose is to facilitate financing for public capital improvements of the City and the Agency. Separate financial statements are not prepared for the Authority.

The Covina Housing Authority (the Housing Authority) was formed January 25, 2011, in order to continue to achieve the goals established by the Housing Element of the general plan. A housing authority collaborates with public, private, and nonprofit entities agencies for the purpose of providing sanitary and safe housing for people of very low-, low- or moderate-income within a city or county’s territorial jurisdiction. The core activities of many housing authorities are primarily to build, acquire, own, manage, and maintain residential rental units and to provide financial assistance for rentals or ownership in the private real estate market. A housing authority is governed by the state Housing Authority Law, and for purposes of major federal funding, if any is received, regulations of the U.S. Department of Housing and Urban Development (HUD). Further, a housing authority is not required under the Housing Authority Law to seek HUD or any other type of outside funding. On January 30, 2012, the City Council adopted a resolution to retain the Housing assets and functions of the dissolved Agency, and the Housing Authority of the City will serve as the Housing Successor Agency. The activity is reflected in the Housing Authority Special Revenue Fund. Separate financial statements are not prepared for the Housing Authority.

The accounting policies of the City, the Authority, and the Housing Authority conform to accounting principles generally accepted in the United States of America as applicable to governments. The following is a summary of the more significant policies.

CITY OF COVINA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(40)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Government-Wide and Fund Financial Statements
The accompanying financial statements are presented on the basis prescribed in Governmental Accounting Standards Board (GASB) Statement No. 34, Basic Financial Statements – and Management’s Discussion and Analysis – for State and Local Governments. The financial statements of the City are as follows:

Government-Wide Financial Statements
The statement of net position and statement of activities report information on all the activities of the primary government (including its blended component units). The City of Covina has no discretely presented component units. As a rule, the effect of interfund activity has been eliminated from the government-wide statements. Exceptions to this general rule are charges for the City water utility, sewer services and environmental services, and indirect general government expenses to other functions and funds of the City. Elimination of the water utility, sewer service charges, and environmental service charges would distort the direct costs and program revenues reported for the various functions concerned. Expenses reported in various funds include allocated indirect general government expenses. Governmental activities, which normally are supported by taxes, intergovernmental revenues, and other nonexchange transactions, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support.

The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include (1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a function or segment. Taxes and other items not properly included among program revenues are reported as general revenues.

Fund Financial Statements
Separate financial statements of the City, including blended component units, are provided for major individual governmental, proprietary and fiduciary funds, which include the private-purpose trust fund and custodial fund. The fiduciary funds are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements.

CITY OF COVINA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(41)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary and fiduciary funds statements. With this measurement focus, all assets, deferred outflows of resources, liabilities and deferred inflows of resources associated with the operation of the City are included on the statement of net position. Net position (assets plus deferred outflows of resources less liabilities less deferred inflows of resources) are segregated into net investment in capital assets (net of related debt), restricted and unrestricted components. The statement of activities and statement of revenues, expenses, and changes in fund net position of proprietary funds present increases (revenues) and decreases (expenses) in net total position. Revenues are recorded when earned and expenses are recorded when a liability is incurred regardless of the timing of the related cash flows. Under this determination, unbilled service receivables are recorded at fiscal year-end.

Nonexchange transactions are typically described as taxes, fines, and certain grants and donations. In a nonexchange transaction, a government gives (or receives) value without directly receiving (or giving) equal value in return. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

Government fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. With this measurement focus, only current assets, current liabilities and current deferred inflows of resources generally are included on the balance sheet. Operating statements of these funds’ present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in fund balance. Under the modified accrual basis of accounting, revenues are recognized when they become susceptible to accrual (i.e., when they become measurable and available to finance expenditures of the current period or soon enough thereafter to be used to pay liabilities of the current period). For this purpose, the City considers revenues including property taxes to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures are recorded when the related fund liability is incurred, except for unmatured principal and interest on long-term debt, claims and judgments and compensated absences, which are recognized only when due and payable at fiscal year-end. General capital asset acquisitions and debt service principal payments are reported as expenditures in governmental funds. Proceeds from long-term debt and acquisitions under leases are reported as other financing sources.

CITY OF COVINA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(42)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)
Property taxes, charges for services, grant revenues, and investment earnings are susceptible to accrual and have been recognized as revenues of the current fiscal period. Licenses and permits and fines and forfeitures are not susceptible to accrual because they are not measurable until received in cash. Grant revenues earned but not received are recorded as a receivable, and grants received before the related revenue recognition criteria have been met are reported as unearned revenues.

The City reports the following major governmental funds:

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

Measure W Special Revenue Fund
This fund accounts for the tax collected to provide a safe, clean water program.

American Rescue Plan Act (ARPA) Special Revenue Fund
This fund accounts for monies provided to the City to assist with COVID pandemicrelated response activities supporting public health response, address negative economic impacts, replace public sector revenue loss, fund essential government services and certain water, sewer, and broadband infrastructure improvements.

Park Development Capital Projects Fund
This fund accounts for federal and state grant monies used for parkland acquisition and development.

The City reports the following major proprietary funds:

Water Utility Fund
This enterprise fund is used to account for general and administrative, utility billing, customer service, sales promotion, source and supply, production and storage, and transmission and distribution operations.

Sewer Fund
This enterprise fund accounts for the operation and maintenance of the wastewater system within the City’s boundaries.

CITY OF COVINA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(43)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)
Additionally, the City reports the following fund types:

Special Revenue Funds
These funds are used to account for specific revenue sources that are legally restricted or otherwise assigned for specific purposes.

Capital Projects Funds
These funds are used to account for capital expenditures funded by various sources.

Enterprise Funds
These funds accounts for the general and administrative, environmental services, industrial waste, waste management operations, and theater operations.

Internal Service Funds
These funds account for the central equipment, management information systems, workers’ compensation and general liability services provided to other departments of the City.

Fiduciary Funds
Private-Purpose Trust Fund
This fund is to account for custodial responsibilities that are assigned to SACRA with the passage of AB X1 26 and was established on February 1, 2012. The fund accounts for the receipt of property tax revenues pursuant to the dissolution of the Agency and expenses incurred pursuant to the recognized obligation payment schedule (ROPS) approved by the State Department of Finance. This fund follows the accrual basis of accounting.

Other Postemployment Benefit Trust Fund
The fund is to account for resources that are held in an irrevocable trust for the benefit of participants in the City’s other postemployment benefit plan.

Custodial Funds
These funds are used to account for funds in which the City is acting as an agent for another entity. These funds are reported using the accrual basis of accounting.

CITY OF COVINA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(44)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses from operations generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the Water Utility, Sewer and nonmajor (Environmental) enterprise funds and the City’s internal service funds are charges to customers for sales and services. The Water Utility recognizes as operating revenue capital improvement fees intended for construction and rehabilitation of the water system. Operating expenses for enterprise and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

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

D. Encumbrances
Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditures of funds are recorded, is employed in governmental funds. Amounts encumbered in the current year are treated as restricted, committed, or assigned fund equity since they do not constitute expenditures or liabilities. At fiscal year-end, encumbrances outstanding are shown as restricted or assigned fund balance.

E. Use of Estimates
The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures.

Accordingly, actual results could differ from those estimates.

F. Cash and Cash Equivalents
The City considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents.

G. Investments
Investments are stated at fair value using quoted market prices. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Investment elements, including interest and changes in fair value, are aggregated and reported as investment earnings in the financial statements.

CITY OF COVINA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(45)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) H. Receivables
All accounts receivable are shown net of an allowance for uncollectible amounts. The allowance is estimated based on historical collections and a review of account receivable.

I. Inventories and Prepaid Items
Inventories are priced at the lower of cost or market on a first-in, first-out basis. The inventories consist primarily of water parts, vehicle and equipment parts and gasoline.

Inventories of governmental funds are considered immaterial and are recorded as expenditures when purchased under the purchase’s method. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements.

J. Compensated Absences
The City recognizes a liability for compensated absences for leave time that (1) has been earned for services previously rendered by employees, (2) accumulates and is allowed to be carried over to subsequent years, and (3) is more-likely-than-not to be used as time off or settled during or upon separation from employment. Based on the criteria listed, five types of leave qualify for liability recognition for compensated absences – vacation, sick, floating, administrative leave, and compensatory time. The liability for compensated absences is reported as incurred in the government-wide and proprietary fund financial statements. A liability for compensated absences is recorded in the governmental funds only if the liability has matured because of employee resignations or retirements. The liability for compensated absences includes salaryrelated benefits, where applicable.

K. Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (roads, bridges, sidewalks, water, sewer, and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the City as assets with a cost of more than $5,000 (more than $1,000 for certain vehicles and information technology equipment) and an estimated useful life of more than one year. Such assets are recorded at historical or estimated historical cost. Contributed and donated capital assets are recorded at acquisition value at the date of donation.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend the life of the asset are not capitalized. Major capital outlays and improvements are capitalized as projects are constructed.

CITY OF COVINA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(46)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) K. Capital Assets (Continued)
Property, plant, and equipment of the City is depreciated using the straight-line method over the following estimated useful lives:

Type of Asset Life in Years
Buildings and Structures 20 to 40 Years
Improvements Other Than Buildings 20 Years
Public Domain Infrastructure 15 to 50 Years
Water System Infrastructure 20 to 50 Years
Sanitary Sewer System Infrastructure 20 to 50 Years
Machinery and Equipment 5 to 20 Years
Subscription-Based Information Technology Arrangements (SBITA) assets are initially measured as the sum of the present value of payments expected to be made during the subscription term, payments associated with the SBITA contract made to the SBITA vendor at the commencement of the subscription term, when applicable, and capitalizable implementation costs, less any SBITA vendor incentives received form the SBITA vendor at the commencement of the SBITA term. SBITA assets are amortized in a systematic and rational manner over the shorter of the subscription term or the useful life of the underlying IT assets.

L. Leased Property
Lessee
The City is a lessee for noncancellable leases of equipment. The City recognizes a lease liability and an intangible right-to-use lease asset (lease asset) in the applicable governmental activities or business-type activities in the government-wide and in the proprietary fund financial statements. The City recognizes lease liabilities with an initial individual value of $5,000 or more. 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. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized on a straight-line basis over the shorter of the lease term or its useful life.

Lessor
The City recognizes a lease receivable and a deferred inflow of resources in the applicable governmental activities or business-type activities in the government-wide and in the governmental and proprietary fund financial statements. At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received.

CITY OF COVINA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(47)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) L. Leased Property (Continued)
The deferred inflow of resources is 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 inflow of resources is recognized as revenue over the life of the lease term.

For both the lessee and lessor the City uses the interest rate stated on the agreement when available. When the interest rate is not provided the City uses its estimated incremental borrowing rate as the discount rate.

M. Claims and Judgments
The accrual for workers’ compensation and general liability claims is based upon an actuarial review of the past experience which has been modified for current trends and information. While the ultimate amount of losses incurred through June 30, 2025 is dependent on future developments, based on information from the plan administrators, City management believes that the aggregate accrual is adequate to cover such losses, including amounts for incurred but not reported.

N. Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) plans (Plans) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported as fair value. CalPERS audited financial statements are publicly available reports that can be obtained on the CalPERS’s website under Forms and Publications.

O. Other Postemployment Benefits (OPEB)
For purposes of measuring the net OPEB liability and deferred outflows/inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s plan (OPEB Plan), and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis. For this purpose, benefit payments are recognized when due and payable in accordance with the benefit terms.

Investments are reported at fair value.

CITY OF COVINA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(48)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) P. Net Position
Net position in the statement of net position is categorized as net investment in capital assets, restricted and unrestricted.

Net Investment in Capital Assets – This category groups all capital assets into one component of net position. Accumulated depreciation and the outstanding balances of debt (including discounts and premiums) that are attributable to the acquisition, construction, or improvement of these assets reduce the balance in this category.

Restricted Net Position – This category presents external restrictions imposed by creditors, grantors, contributors, or laws or regulations of other governments and restrictions imposed by law or enabling legislation.

Unrestricted Net Position – This category represents net position of the City not restricted for any project or other purpose.

Q. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position includes a separate section for deferred outflows of resources. Deferred outflows of resources represent a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The category of deferred outflow of resources reported in the statement of net position is related to debt refunding, pensions, and other postemployment benefits. The deferred charge on refunding resulted from the difference between the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. Deferred outflows on pension and other postemployment benefits are more fully discussed in Notes 10 and 17.

In addition to liabilities, the statement of financial position and the governmental funds balance sheet includes a separate section for deferred inflows of resources. Deferred inflows of resources represent an acquisition of net assets or fund balance that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. In the government-wide financial statements. The City’s deferred inflows of resources reported on the statement of net position relate to pension and other postemployment benefits, which are more fully discussed in Notes 10 and 17. The statement of net position and the governmental funds balance sheet also reports a deferred inflow of resources related to leases.

Under the modified accrual basis of accounting, deferred inflows of resources also include revenues not collected within the availability period after the fiscal year-end. The City has reported deferred inflows of resources related to unavailable revenues for grants. These amounts are deferred and will be recognized as an inflow of resources in the period that amounts become available.

CITY OF COVINA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(49)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) R. Adoption of New Accounting Standards
During the year ended June 30, 2025, the City implemented GASB Statement No. 101, Compensated Absences, see Notes 11 and 1J for more information.

NOTE 2 STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
Excess of Charges over Appropriations
For the fiscal year ended June 30, 2025, expenditures exceeded appropriations in the following programs:

Variance with
Budget Actual Final Budget
Other Governmental Funds:

Special Revenue Funds:

State Gas Tax 1,591,164 $ 1,625,075 $ (33,911) $
Air Quality Improvement 28,231 28,380 (149)
Lighting Assessment 265,309 275,296 (9,987)
Funds with deficit balances were as follows:

Amount
Park Development Capital Projects Fund 3,278,365 $
Other Governmental Funds:

Special Revenue Funds:

State Gas Tax 37,715
Lighting Assessment 26,437
Measure R 19,985
Other Grants 144,144
The deficit in these funds will be reduced by transfers from the general fund or from receipt of grant revenues.

NOTE 3 CASH AND INVESTMENTS
The City is following the requirements associated with GASB Statement No. 40, Deposit and Investment Risk Disclosures. More commonly referred to as GASB 40, this statement adds to and changes financial statement disclosure requirements for cash and investments of local governments. GASB 40 amends GASB Statement No. 3, Deposits with Financial Institutions, Investments (including Repurchase Agreements), and Reverse Repurchase Agreements, to address common deposit and investment risks related to credit risk, interest rate risk, and foreign currency risk. As an element of interest rate risk, this statement requires certain disclosures of investments that have fair values with a high sensitivity to interest rate changes.

CITY OF COVINA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(50)
NOTE 3 CASH AND INVESTMENTS (CONTINUED)
Cash and investments as of June 30, 2025, are classified in the accompanying financial statements as follows:

Other
Business- Private- Postemployment
Governmental Type Purpose Trust Benefit Custodial
Activities Activities Fund Trust Fund Funds Total
Statement of Net Position:

Cash and Investments 86,626,490 $ 22,417,317 $ 1,120,161 $ 1,625,067 $ 875 $ 111,789,910 $ Cash and Investments With
Fiscal Agent 783 - - - - 783
Total Cash and
Investments $ 86,627,273 $ 22,417,317 $ 1,120,161 $ 1,625,067 $ 111,790,693 875 $ Cash and Investments as of
June 30, 2025, consist of the
Following:

Cash on Hand $ 7,280
Deposits With Financial
Institutions 7,361,035
Investments 104,422,378
Total Cash and
Investments $ 111,790,693
Fiduciary Funds
Authorized Investments
The table below identifies the investment types that are authorized for the City by the California Government Code and the City’s investment policy. The table also identifies certain provisions of the California Government Code (or the City’s investment policy, if more restrictive) that address interest rate risk, credit risk, and concentration of credit risk.

This table does not address investments of debt proceeds held by bond trustees 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.

Covina Covina Covina Covina
CGC Policy CGC Policy CGC Policy CGC Policy
Mutual Funds (Money Market Funds) N/A N/A 20% 10% 10% None AAA AAA Bankers Acceptance 180 Days 180 Days 40% 20% 30% None None Prime Commercial Paper 270 Days 180 Days 25% 15% 10% None A Prime Certificates and Time Deposits 5 Years 2 Years 30% 10% None None None None Corporate Notes 5 Years 2 Years 30% 10% None None A AAU.S. Treasury Securities 5 Years 5 Years None 30% None None None None U.S. Agency Securities 5 Years 5 Years None 30% None 10% None None Local Agency Investment Fund (LAIF) N/A N/A None None None None None None Maximum Maturity Portfolio Issuer Rating
Maximum Maximum
Percentage of Investment in One Minimum Credit
Investments Authorized by Debt Agreements
Investment of debt proceeds and reserves held by bond trustees are governed by the debt agreements, rather than the general provisions of the California Government Code.

CITY OF COVINA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(51)
NOTE 3 CASH AND INVESTMENTS (CONTINUED)
Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. 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.

Information about the sensitivity of the fair values of the City investments (including investments held by bond trustee) to market interest rate fluctuations is provided by the following table:
12 Months 13 to 36 37 to 60 More Than 60
Fair Value or Less Months Months Months
Investment Type:

State Investment Pool (LAIF) $ 39,637,700 39,637,700 $ - $ - $ - $ U.S. Agency Securities 31,877,666 992,900 15,920,827 14,963,939 - Negotiable Certificates of Deposit 22,075,508 5,425,344 10,751,456 5,898,708 - Money Market Mutual Funds 364,084 364,084 - - -
Held by OPEB Trust:

Money Market Mutual Funds 1,615,621 1,615,621 - - -
Held by Bond Trustee:

Money Market Mutual Funds 820 820 - - -
Total 95,571,399 48,035,649 $ 26,672,283 $ 20,862,647 $ - $ Not Subject to Investment Rate Risk:

Covina Irrigating Company 8,850,979
Total Investments 104,422,378 $
Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligations to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Certain investments, such as obligations, which are backed by the full faith and credit of the United States Government, are exempt from credit rating disclosures.

CITY OF COVINA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(52)
NOTE 3 CASH AND INVESTMENTS (CONTINUED)
Credit Risk (Continued)
Presented below is the minimum rating required by (where applicable) the California Government Code, the City’s investment policy or debt agreements and the actual rating from Standard & Poor’s as of fiscal year-end for each investment type:

Minimum
Credit Not Required
Fair Value Rating AAA AA+ Not Rated to be Rated
Investment Type:

State Investment Pool (LAIF) $ N/A - 39,637,700 $ $ - $ 39,637,700 $ - U.S. Agency Securities 31,877,666 N/A - 31,877,666 - -
Negotiable Certificates of Deposit 22,075,508 N/A - - 22,075,508 - Money Market Mutual Funds 364,084 N/A 364,084 - - -
Held by OPEB Trust:

Money Market Mutual Funds 1,615,621 N/A - - - 1,615,621 Held by Bond Trustee:

Money Market Mutual Funds N/A 820 820 - - -
Total 95,571,399 $ 364,904 $ 31,877,666 $ 61,713,208 $ 1,615,621 Not Subject to Credit Risk
Covina Irrigating Company 8,850,979
Total Investments $ 104,422,378
Concentration of Credit Risk
The investment policy of the City contains limitations on the amount that can be invested in any one issuer. There are no investments in any one issuer (other than U.S. Treasury securities, money market mutual funds, and external investment pools) that represent 5% or more of total City investments.

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 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 California Government Code requires that a financial institution secure deposit made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law. 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.

As of June 30, 2025, all the City’s deposits with financial institutions in excess of federal depository insurance limits were held in collateralized accounts.

CITY OF COVINA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(53)
NOTE 3 CASH AND INVESTMENTS (CONTINUED)
Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by the California Government Code under the oversight of the Treasurer of the State of California. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon its pro rata share of the fair value provided by LAIF for the entire LAIF portfolio. The balance available for withdrawal is based on LAIF accounting records and recorded on an amortized basis.

Investment in Covina Valley Water Company
The Covina Valley Water Company (the Company) is a nonprofit mutual water company.

The purpose of the Company is to develop, distribute, supply or deliver water at cost for irrigation and domestic uses of its stockholders. The governing board of directors consists of nine directors which are elected by the stockholders. The City’s investment in the Company has been recorded on the equity method of accounting in the Water Utility Enterprise Fund.

The City’s equity share is 42.19%.

Fair Value Measurements
The City categorizes its fair value measurement within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the assets. Level 1 inputs are quoted prices in active markets for identical assets, Level 2 inputs are quoted prices for similar assets in active markets and Level 3 inputs are significant unobservable inputs.

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

Quoted Prices in Significant
Active Markets Other Significant
for Identical Observable Unobservable
Investment by Fair Value Level Fair Value Assets (Level 1) Input (Level 2) Inputs (Level 3) Debt Securities:

U.S. Agency Securities 31,877,666 $ - $ 31,877,666 $ - $ Negotiable Certificates of Deposit 22,075,508 - 22,075,508 - Total Investments Measured
at Fair Value 53,953,174 - $ 53,953,174 $ - $
Investments:

State Investment Pool (LAIF)* 39,637,700
Money Market Mutual Funds* 1,980,525
Covina Irrigating Company* 8,850,979
Total Pooled Investments 104,422,378 $
* Not subject to fair value measurement hierarchy.

Fair Value Measurements Using
The annual money-weighted rate of return on fiduciary OPEB plan investments (calculated as the internal rate of return on plan investments, net of plan investment expense) for the year ended June 30, 2025 was 9.20%. The annual money-weighted rate of return expresses investment performance, net of OPEB plan investment expense, adjusted for the changing amounts actually invested.

CITY OF COVINA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(54)
NOTE 4 INTERFUND TRANSACTIONS
A. Interfund Balances
Operating receivables between funds are classified as due from or due to other funds.

Negative individual fund cash and investment balances are offset by a due from other funds in the General Fund with a due to other funds set up in those funds owing the General Fund. The following are due from and due to balances as of June 30, 2025:

Receivable Fund Payable Fund Amount
General Other Governmental Funds $ 78,498
Advances
Advances were made to the Theater Enterprise Fund from the Sewer Enterprise Fund during fiscal year 2022-2023. The advance was used to assist in the purchase of the preforming arts center. Interest on the outstanding balance on advances payable is charged at an annual rate of 1.57%. Payments started in December 2023 and the advance will mature in December 2042. At June 30, 2025 the outstanding balance was $2,511,929.

Interfund Transfers
Transfers between funds are generally subsidies from one fund to another fund, funding of workers compensation and general liability reserves. The following are the interfund transfers for fiscal year ended June 30, 2025.

Transfers In Fund Transfers Out Fund Amount
General Other Governmental Funds $ 285,590
Other Governmental Funds General 612,923
Park Development General 919,155
Internal Service Water Fund 12,761
Internal Service Sewer Fund 89,745
Internal Service General 1,242,551
Internal Service Other Enterprise Funds 1,085
Total $ 3,163,810
B. Internal Balances
Internal balances represent the net interfund receivables and payables remaining after elimination of all such balances within governmental and business-type activities.

NOTE 5 LEASE RECEIVABLE
The City, acting as lessor, leases wireless cell towers and land under long-term, noncancelable lease agreements. The leases expire at various dates through 2029 and do not provide for renewal options. During the year ended June 30, 2025, the City recognized $830,187 and $42,375 in lease revenue and interest revenue, respectively, pursuant to these contracts.

CITY OF COVINA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(55)
NOTE 6 PROPERTY TAXES
Property taxes are attached as an enforceable lien on property as of January 1. Taxes are levied in September and are payable in two installments on November 1 and February 1 and are delinquent after December 10 and April 10, respectively. Any unpaid amounts at the end of the fiscal year are recorded as property taxes receivable. The County of Los Angeles bills and collects the property taxes and subsequently remits the amount due to the City of Covina in installments during the year. Historically, the City has received substantially all of the taxes levied within two years from the date they are levied.

The County is permitted by State Law (Article XIII A of the California Constitution) to levy taxes at 1% of full market value (at time of purchase) and can increase the property’s value no more than 2% per year. The City receives a share of this basic levy proportionate to what it received in the 1976 to 1978 period.

NOTE 7 NOTES RECEIVABLE
The former Agency entered into agreement with Covina Gardens, KBS, L.P., a California Limited Partnership (the Developer) to effectuate the Redevelopment Plan for the Covina Revitalization Project No. 1 by providing for the rehabilitation of residential rental housing development existing on a site acquired by the Developer which will maintain the supply and availability of low- and moderate-income housing, including very low-income units. The former Agency provided assistance to the Developer in the form of notes secured by a second deed of trust in the amount not to exceed $4,742,000. The interest rate range is 2% per year, and notes receivable are due in 55 years. At June 30, 2025, the City has recorded an allowance for the balance of $5,445,755 for principal of $4,742,000 and accrued interest of $703,755 as management is not certain if this amount will be collected.

NOTE 8 LOANS RECEIVABLE
The City’s Community Development Block Grant (CDBG) program provides low-income housing and economic assistance to qualifying households and businesses. The loans do not require monthly repayment. In addition to CDBG loans, first-time homebuyer loans made by the former Covina Redevelopment Agency are now administered by the Housing Authority. The loans for the first-time homebuyer and for down payment assistance bear interest from 1.5% to 6.875%. The first-time home buyer loans are forgiven after 45 consecutive years of occupying the home purchased, while the down payment assistance is forgiven after 20 years of occupying the home purchased. The housing rehabilitation program loan is secured by a deed of trust on the property and is due upon sale or transfer of the title of the property. The outstanding balance as of June 30, 2025, of all loans was $1,879,466. Due to the forgiveness feature of these loans the City has established an allowance for uncollectible loans in the amount of $1,572,354.

CITY OF COVINA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(56)
NOTE 9 CAPITAL ASSETS
Governmental Activities
Capital asset activity for the fiscal year ended June 30, 2025 was as follows:

Beginning Deletions/ Ending
Balance Additions Transfers Balance
Governmental Activities:

Capital Assets, Not Depreciated/Amortized:

Land $ 12,335,553 $ 5,116,334 $ - $ 17,451,887
Construction in Progress 5,286,758 14,594,722 10,718,082 9,163,398 Total Capital Assets, Not
Depreciated/Amortized 17,622,311 19,711,056 10,718,082 26,615,285 Capital Assets, Depreciated/Amortized:

Buildings and Structures 41,202,096 2,279,982 22,252 43,459,826 Improvements Other Than Buildings 17,112,570 3,960,389 425,648 20,647,311 Public Domain Infrastructure 140,058,841 4,576,669 - 144,635,510 Sanitary Sewer Infrastructure 6,221,681 - - 6,221,681
Machinery and Equipment 12,828,614 1,979,108 1,493,886 13,313,836 Right-to-Use Assets 813,520 42,122 484,128 371,514
Subtotal 218,237,322 12,838,270 2,425,914 228,649,678
Less: Accumulated Depreciation/
Amortization for:

Buildings and Structures 15,944,928 894,080 21,008 16,818,000 Improvements Other Than Buildings 7,267,892 811,399 425,648 7,653,643 Public Domain Infrastructure 100,225,196 3,371,377 - 103,596,573 Sanitary Sewer Infrastructure 4,638,338 60,386 - 4,698,724 Machinery and Equipment 9,742,906 964,083 1,458,259 9,248,730 Right-to-Use Assets 455,808 220,697 484,128 192,377
Subtotal 138,275,068 6,322,022 2,389,043 142,208,047
Total Capital Assets,
Depreciated/Amortizated, Net 79,962,254 6,516,248 36,871 86,441,631 Total Capital Assets, Net $ 97,584,565 $ 26,227,304 $ 10,754,953 $ 113,056,916 Depreciation/amortization expense was charged to the following categories:

Governmental Activities:

General Government 350,905 $
Public Safety 707,230
Public Works 3,995,118
Culture and Recreation 899,704
Transit 369,065
Total Governmental Activities $ 6,322,022

CITY OF COVINA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(57)
NOTE 9 CAPITAL ASSETS (CONTINUED)
Business-Type Activities
Beginning Additions/ Ending
Balance Transfers Deletions Balance
Business-Type Activities:

Capital Assets, Not Depreciated/Amortized:

Land $ 377,408 $ - $ - $ 377,408
Construction in Progress 1,831,974 2,696,987 4,266,005 262,956 Total Capital Assets, Not
Depreciated/Amortization 2,209,382 2,696,987 4,266,005 640,364 Capital Assets, Depreciated/Amortized:

Buildings and Structures 19,442,090 15,000 - 19,457,090 Improvements Other Than Buildings 3,367,428 118,297 - 3,485,725 Water System Infrastructure 59,648,262 4,178,710 - 63,826,972 Machinery and Equipment 4,779,102 989,698 - 5,768,800
Right-to-Use Assets 17,306 - - 17,306
Subtotal 87,254,188 5,301,705 - 92,555,893
Less: Accumulated Depreciation/
Amortization for:

Buildings and Structures 4,723,138 392,268 - 5,115,406
Improvements Other Than Buildings 405,907 125,479 - 531,386 Water System Infrastructure 18,246,406 1,490,402 - 19,736,808 Machinery and Equipment 3,080,715 352,893 - 3,433,608
Right-to-Use Assets 10,383 3,461 - 13,844
Subtotal 26,466,549 2,364,503 - 28,831,052
Total Capital Assets,
Depreciated/Amortized, Net 60,787,639 2,937,202 - 63,724,841 Total Capital Assets, Net $ 62,997,021 $ 5,634,189 $ 4,266,005 $ 64,365,205 Depreciation/amortization expense was charged to the following categories.

Business-Type Activities:

Water Utility 1,713,669 $
Sewer 416,422
Nonmajor Fund - Other Enterprise Funds 234,412
Total Business-Type Activities $ 2,364,503

CITY OF COVINA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(58)
NOTE 10 PENSION PLANS
The following is a summary of pension related items for the year ended June 30, 2025:

Deferred Deferred
Pension Outflows of Inflows of Pension
Liability Resources Resources Expense
CalPERS Miscellaneous $ 12,474,273 $ 3,912,517 $ - $ 3,224,150 CalPERS Safety 17,705,195 11,699,921 11,041,046 1,111,350 Total $ 30,179,468 $ 15,612,438 $ 11,041,046 $ 4,335,500 Pension liabilities are liquidated from the related employees home program, with the majority funded out of the General Fund.

A. General Information About the Pension Plans
Plan Description
All qualified permanent and probationary employees are eligible to participate in the City’s Safety (police) cost sharing defined benefit plan and the Miscellaneous (all other) Plan, agent multiemployer defined benefit pension plans administered by the California Public Employees’ Retirement System (CalPERS), which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the Plans are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.

Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost-of-living adjustments 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 fulltime employment. Members with five years of total service are eligible to retire at age 50 to 62 with statutorily reduced benefits. For employees hired into a plan with the 1.5% at 65 formula, eligibility for service retirement is age 55 with at least five years of service.

PEPRA miscellaneous members become eligible for service retirement upon attainment of age 52 with at least five years of service. All members are eligible for nonduty disability benefits after five years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. Safety members can receive a special death benefit if the member dies while actively employed and the death is job related. The cost-of-living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.

CITY OF COVINA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(59)
NOTE 10 PENSION PLANS (CONTINUED)
A. General Information About the Pension Plans (Continued) Benefits Provided (Continued)
The Plans’ provisions and benefits in effect at the measurement date of June 30, 2024, are summarized as follows:

Prior to On or After
Hire Date January 1, 2013 January 1, 2013
Benefit Formula 2.5% @ 55 2.0% @ 62
Benefit Vesting Schedule 5 Years of Service 5 Years of Service Benefit Payments Monthly for Life Monthly for Life
Retirement Age 50 - 55 50 - 62
Monthly Benefits, as a %
of Eligible Compensation 2.0% - 2.7% 2.0% - 2.7%
Required Employee Contribution Rates 8.13% 6.50%
Required Employer Contribution Rates:

Normal Cost Rate 11.960% 8.250%
Payment of Unfunded Liability 342,574 $ - $
On or After
January 1, 2011
Prior to and Prior to On or After
Hire Date December 31, 2010 January 1, 2013 January 1, 2013 Benefit Formula 3.0% @ 50 3% @ 55 2.7% @ 57
Benefit Vesting Schedule 5 Years of Service 5 Years of Service 5 Years of Service Benefit Payments Monthly for Life Monthly for Life Monthly for Life Retirement Age 50 - 55 50 - 55 50 - 57
Monthly Benefits, as a %
of Eligible Compensation 3% 2.4% - 3% 2.0% - 2.7%
Required Employee Contribution Rates 8.99% 8.99% 14.50% Required Employer Contribution Rates:

Normal Cost Rate 29.300% 26.290% 14.500%
Payment of Unfunded Liability 594,049 $ 12,656 $ 23,469 $ Miscellaneous
Safety
Employees Covered
At the measurement date of June 30, 2024, the following employees were covered by the benefit terms for the Miscellaneous Plan:

Miscellaneous
Inactive Employees or Beneficiaries Currently
Receiving Benefits 286
Inactive Employees Entitled to But Not Yet
Receiving Benefits 319
Active Employees 122
Total 727

CITY OF COVINA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(60)
NOTE 10 PENSION PLANS (CONTINUED)
A. General Information About the Pension Plans (Continued) Contributions
Section 20814 of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’s annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. City contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contributions requirements are classified as plan member contributions. For the fiscal year ended June 30, 2025, employer contributions of $1,610,288 and $2,452,482 were made for the miscellaneous and safety plans, respectively.

B. Net Pension Liability
The City’s net pension liability for each Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of each of the Plans is measured as of June 30, 2024, using an annual actuarial valuation as of June 30, 2023, rolled forward to June 30, 2024 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown on the following page.

CITY OF COVINA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(61)
NOTE 10 PENSION PLANS (CONTINUED)
B. Net Pension Liability (Continued)
Actuarial Assumptions
The total pension liabilities in the June 30, 2023 actuarial valuations were determined using the following actuarial assumptions:

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

Discount Rate 6.90% 6.90%
Inflation 2.30% 2.30%
Projected Salary Increase (1) (1)
Mortality Rate Table (2) (2)
Postretirement Benefit Increase (3) (3)
(1) Varies by entry age and service.
(2) The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study for the period from 2001 to 2019. Pre-retirement and Post-retirement mortality rates include 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 CalPERS Experience Study and Review of Actuarial Assumptions report from November 2021 that can be found on the CalPERS website. (3) The less of contract COLA or 2.30% until Purchasing Power Protection Allowance Floor on purchasing power applies, 2.30% thereafter.

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.

CITY OF COVINA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(62)
NOTE 10 PENSION PLANS (CONTINUED)
B. Net Pension Liability (Continued)
Long-Term Expected Rate of Return (Continued)
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short term and long term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.

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

Assumed
Asset Real Return
Allocation (a) (b)
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 0.50
Investment Grade Corporates 10.00 1.56
High Yield 5.00 2.27
Emerging Market Debt 5.00 2.48
Private Debt 5.00 3.57
Real Assets 15.00 3.21
Leverage (5.00) (0.59)
Total 100.00 %
(a) An expected inflation of 2.30% used for this period. (b) Figures are based on the 2021-22 Asset Liability Management study.

Leverage
Discount Rate
The discount rate used to measure the total pension liability was 6.9%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

CITY OF COVINA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(63)
NOTE 10 PENSION PLANS (CONTINUED)
C. Changes in the Net Pension Liability
The changes in the net pension liability for the Miscellaneous Plan are as follows:

Total Plan Net Pension
Pension Fiduciary Liability
Liability Net Position (Asset)
Balance at June 30, 2023
(Measurement Date) 112,167,058 $ 98,639,804 $ 13,527,254 $ Changes in the Year:

Service Cost 1,841,249 - 1,841,249
Interest on the Total Pension
Liability 7,640,017 - 7,640,017
Differences between Expected
and Actual Experience 592,553 - 592,553
Contribution - Employer - 1,137,667 (1,137,667)
Contribution - Employee - 858,548 (858,548)
Net Investment Income - 9,210,849 (9,210,849)
Administrative Expenses - (80,264) 80,264
Benefit Payments, Including
Refunds of Employee
Contributions (5,910,702) (5,910,702) -
Net Changes 4,163,117 5,216,098 (1,052,981)
Balance at June 30, 2024
(Measurement Date) 116,330,175 $ 103,855,902 $ 12,474,273 $ Increase (Decrease)
Proportionate Share of Net Pension Liability Safety Plan As of June 30, 2025 (measurement date of June 30, 2024), the City reported $17,705,195 for its proportionate share of the net pension liability for the Safety Plan.

The City’s net pension liability for the Safety Plan is measured as the proportionate share of the net pension liability. The net pension liability of the Plan is measured as of June 30, 2024, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2023, rolled forward to June 30, 2024 using standard update procedures. The City’s proportionate share of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined.

CITY OF COVINA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(64)
NOTE 10 PENSION PLANS (CONTINUED)
C. Changes in the Net Pension Liability (Continued)
Proportionate Share of Net Pension Liability Safety Plan (Continued) The City’s proportionate share of the net pension liability for the Safety Plan as of the measurement dates ended June 30, 2023 and 2024 was as follows:

Safety
Proportion - June 30, 2023 0.243600%
Proportion - June 30, 2024 0.242840%
Change - Increase (Decrease) -0.000760%
Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the City for each Plan, calculated using the discount rate for each Plan, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower or 1-percentagepoint higher than the current rate:

Miscellaneous Safety
1% Decrease 5.90% 5.90%
Net Pension Liability $ 28,106,120 $ 38,621,127
Current Discount Rate 6.90% 6.90%
Net Pension Liability $ 12,474,273 $ 17,705,195
1% Increase 7.90% 7.90%
Net Pension Liability (Asset) $ (317,105) $ 598,903
Pension Plan Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

CITY OF COVINA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(65)
NOTE 10 PENSION PLANS (CONTINUED)
D. Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
For the year ended June 30, 2025, the City recognized pension expense of $3,224,150 and $1,111,350 for the Miscellaneous and Safety Plans, respectively. At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Deferred Deferred Deferred
Outflows of Inflows of Outflows of Inflows of
Resources Resources Resources Resources
Pension Contributions Subsequent
to Measurement Date $ - 1,610,288 $ 2,452,482 $ - $
Differences Between Expected and
Actual Experience - 280,683 1,444,901 (46,980)
Change in Assumptions - - 436,220 -
Change in Employer’s Proportion and
Differences Between the Employer’s
Contributions and the Employer’s
Proportionate Share of Contributions - - 6,510,530 (10,994,066) Net Differences Between Projected and
Actual Earnings on Plan Investments - 2,021,546 855,788 - Total $ - 3,912,517 $ 11,699,921 $ (11,041,046) $
Miscellaneous Safety
$1,610,288 and $2,452,482 reported as deferred outflows of resources related to contributions subsequent to the measurement date, for the Miscellaneous and Safety Plans, respectively, 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 as pension expense as follows:

Year Ending June 30, Miscellaneous Safety
2026 685,758 $ (1,910,639) $
2027 2,478,077 762,316
2028 (350,985) (352,472)
2029 (510,621) (292,812)
Payable to the Pension Plan
At June 30, 2025, the City had no outstanding amount of contributions to the pension plan required for the year ended June 30, 2025.

CITY OF COVINA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(66)
NOTE 11 COMPENSATED ABSENCES
For governmental funds, accumulated vacation and sick leave benefits payable at June 30, 2025 was $3,638,875. The short-term portion of $1,294,340 and long-term portion of $2,344,535 is not accounted in the governmental funds but is included in the governmental activities of the government-wide statements. Accumulated vacation and sick leave of $203,121, of which $78,148 represents the current portion, is recorded in the individual internal service funds and governmental activities of the government-wide financial statements. For enterprise funds, accumulated vacation and sick leave amounted to $739,519 of which $277,586 represents the current portion. The total amount is recorded within the respective proprietary funds and business-type activities of the government-wide statements.

Balance Current
June 30, 2025 Portion
Governmental Funds $ 3,638,875 $ 1,294,340
Internal Service 203,121 78,148
Total Governmental Activities $ 3,841,996 $ 1,372,488
Total Enterprise Funds $ 739,519 $ 277,586
NOTE 12 RISK MANAGEMENT
Workers’ Compensation and General Liability
The City has a program of insurance for any liability to City employees arising under the workers’ compensation laws for the State of California. By this action, the City will pay all claims up to $500,000. Amounts in excess of $500,000, up to $150,000,000, are covered through an excess commercial insurer. There are no claims that exceed insurance coverage over the last three years.

The City established general liability and workers’ compensation internal service funds. The funds have cash and investments of $4,740,574 and $7,316,945, respectively.

Actual settlements accrued are accounted for in the appropriate fund. Estimates for all remaining outstanding claims, including an estimate for incurred but not reported claims (IBNR), are not accounted for in the individual funds but are reported in the governmental activities of the government-wide statements under claims and judgements. At June 30, 2025, total actual and estimated claims and judgments payable were as follows:

General Liability $ 3,584,119
Workers’ Compensation 4,940,020
Total $ 8,524,139

CITY OF COVINA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(67)
NOTE 12 RISK MANAGEMENT (CONTINUED)
The following are changes in the claims and judgments liability for fiscal years 2025 and 2024:
2025 2024
Claims and Judgements - Beginning of Fiscal Year 8,476,693 $ 7,920,000 $ Claims Incurred (Including IBNRs) 1,839,177 1,801,357
Claims Paid (1,791,731) (1,244,664)
Claims and Judgements - End of Fiscal Year 8,524,139 $ 8,476,693 $ NOTE 13 LONG-TERM LIABILITIES
The following is a summary of changes in the long-term liabilities for the fiscal year ended June 30, 2025:

Beginning Ending Current
Balance Additions Deletions Balance Portion
Governmental Activities:

Other Long-Term Liabilities:

Compensated Absences 4,619,632 $ - $ 777,636 $ (1) $ 1,372,488 3,841,996 $ Claims and Judgments 8,476,693 1,839,177 1,791,731 8,524,139 2,177,000 Lease Payable 203,417 42,122 84,978 160,561 57,603
Other Debt:

Certificates of Participation
Payable (COP) - 4,260,000 220,000 4,040,000 225,000
Unamortized Premium on COP 173,391 - 11,559 161,832 11,559 Pension Obligation Bonds 50,101,430 - 2,436,610 47,664,820 2,454,109 Direct Borrowings and Placements:

Subscriptions Payable 129,180 - 127,850 1,330 1,330
Section 108 Loan 1,750,000 - 125,000 1,625,000 125,000
Total Long-Term Liabilities, Net 71,857,959 $ 1,881,299 $ 5,575,364 $ 66,019,678 $ 6,424,089 $ Beginning Ending Current
Balance Additions Deletions Balance Portion
Business-Type Activities:

Other Long-Term Liabilities:

Compensated Absences $ - 742,837 $ 3,318 $ (1) 739,519 $ 277,586 $ Lease Payable 7,076 - 3,511 3,565 3,565
Direct Borrowings and Placements:

Water Installment Agreement - 14,828,173 1,185,418 13,642,755 976,921 Other Debt:

Revenue Bonds Payable - 5,645,000 885,000 4,760,000 905,000 Pension Obligation Bonds - 7,163,570 348,390 6,815,180 350,891 Total Long-Term Liabilities, Net 28,386,656 $ - $ 2,425,637 $ 25,961,019 $ 2,513,963 $ (1) Change is shown net.

Internal service funds predominately serve the governmental funds. Accordingly, long-term liabilities for these funds are included as part of the above totals for governmental activities.

Claims and judgments, compensated absences, net pension liability, and net OPEB liability for the governmental activities are generally liquidated by the General Fund and Internal Service Funds.

CITY OF COVINA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(68)
NOTE 13 LONG-TERM LIABILITIES (CONTINUED)
Governmental Activities
Transportation Revenue Certificates of Participation, Series 2017 A In August 2017, $5,625,000 of 2017 Series A certificates of participation bonds were issued to provide funding to repair, upgrade or re-construct residential streets that are in poor to fair condition. The bonds mature annually through 2039, in amounts ranging from $175,000 to $355,000. Interest rates vary from 2.0% to a maximum of 5.0% and are payable semiannually on December 1 and June 1. At June 30, 2025, the outstanding balance of these bonds was $4,040,000. The total debt service requirements to maturity with respect to the certificates included in the governmental-type activities are as follows:

Year Ending June 30, Principal Interest Total
2026 $ 225,000 $ 140,738 $ 365,738
2027 230,000 135,112 365,112
2028 235,000 129,650 364,650
2029 250,000 117,900 367,900
2030 260,000 105,400 365,400
2031-2035 1,480,000 354,050 1,834,050
2036-2039 1,360,000 107,813 1,467,813
Total $ 4,040,000 $ 1,090,663 $ 5,130,663
Leases
The City leases equipment and vehicles for various terms under long-term, noncancelable lease agreements. The leases expire at various dates through 2030 and do not have renewal options.

Total future minimum lease payments are as follows:

Year Ending June 30, Principal Interest Total
2026 $ 57,603 $ 5,080 $ 62,683
2027 39,704 3,430 43,134
2028 31,491 1,985 33,476
2029 24,118 832 24,950
2030 7,645 156 7,801
Total $ 160,561 $ 11,483 $ 172,044
Right-to-use assets acquired through outstanding leases are shown below, by underlying asset class.

Governmental
Activities
Equipment $ 94,689
Vehicles 272,834
Less: Accumulated Amortization (189,716)
Total $ 177,807

CITY OF COVINA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(69)
NOTE 13 LONG-TERM LIABILITIES (CONTINUED)
Governmental Activities (Continued)
Subscription-Based Information Technology Arrangements
The City has entered into subscription-based information technology arrangements (SBITAs) for various software applications. The SBITA arrangements expire at various dates through 2026 and provide for renewal options.

As of June 30, 2025, SBITA assets and the related accumulated amortization totaled $3,991 and $2,661, respectively.

The future subscription payments under SBITA agreements are as follows:

Year Ending June 30, Principal Interest Total
2026 $ 1,330 $ 52 $ 1,382
Total $ 1,330 $ 52 $ 1,382
Section 108 Loan Payable
The County of Los Angeles provided funds under an interim agreement to loan $2,500,000 to the City to provide funds for Covina Senior and Community Center. The advance under the interim agreement was replaced by a Section 108 loan under the Community Development Block Grant Program of the Department of Housing and Urban Development. The City makes annual principal amount of $125,000 commencing August 1, 2018 and annually thereafter and semiannual interest payments on August 1 and February 1 each Year. At June 30, 2025 the outstanding loan balance was $1,625,000.

Year Ending June 30, Principal Interest Total
2026 $ 125,000 $ 50,686 $ 175,686
2027 125,000 47,188 172,188
2028 125,000 43,606 168,606
2029 125,000 39,947 164,947
2030 125,000 36,091 161,091
2031-2035 625,000 119,016 744,016
2036-2038 375,000 20,009 395,009
Total $ 1,625,000 $ 356,543 $ 1,981,543

CITY OF COVINA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(70)
NOTE 13 LONG-TERM LIABILITIES (CONTINUED)
Governmental Activities (Continued)
Pension Obligation Bonds
The City issued $62,795,000 of Taxable Pension Obligation Bonds, Series 2021 (POB), dated August 1, 2021 to fund a portion of the City’s obligations to CalPERS for the unfunded actuarial accrued liability with respect to the City’s miscellaneous and safety defined benefit pension plans. The City allocated the POB between governmental activities and business-type activities as follows:

Governmental Activities $ 47,664,820
Business-Type Activities 6,815,180
Total $ 54,480,000
The POB is due from 2022 through 2046 in annual principal installments of $65,000 to $3,585,000. Interest rates range from 0.299% to 3.001% and interest is payable semiannually on February 1 and August 1. The total outstanding principal as of June 30, 2025, is $54,480,000. The total annual debt service requirements on the POB are as follows:

Year Ending June 30, Principal Interest Total
2026 $ 2,805,000 $ 1,284,896 $ 4,089,896
2027 2,835,000 1,252,752 4,087,752
2028 2,870,000 1,211,853 4,081,853
2029 2,915,000 1,163,612 4,078,612
2030 2,970,000 1,109,405 4,079,405
2031-2035 15,785,000 4,556,401 20,341,401
2036-2040 15,815,000 2,376,088 18,191,088
2041-2045 7,935,000 586,621 8,521,621
2046 550,000 10,204 560,204
Total $ 54,480,000 $ 13,551,830 $ 68,031,830
The annual debt service requirements will be allocated 97% to governmental activities and 3% to business-type activities.

Business-Type Activities
Leases
The City leases equipment under a noncancelable lease agreement. The lease expires in 2026 and does not have a renewal option.

Total future principal and interest payments are as follows:

Year Ending June 30, Principal Interest Total
2026 $ 3,565 $ 30 $ 3,595
Total $ 3,565 $ 30 $ 3,595

CITY OF COVINA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(71)
NOTE 13 LONG-TERM LIABILITIES (CONTINUED)
Business-Type Activities (Continued)
Leases (Continued)
Right-to-use assets acquired through outstanding leases are shown below, by underlying asset class.

Business-Type
Activities
Equipment 17,306 $
Less: Accumulated Amortization (13,844)
Total 3,462 $
Revenue Bonds Payable, Sewer Enterprise Fund
Wastewater Sewer Revenue Bonds – 2019 Taxable Wastewater Revenue Refunding Bonds
In August 2020, the City, issued $9,930,000 2019 Taxable Wastewater Revenue Refunding Bonds (2019 Bonds) for the purpose of refunding the Sewer Revenue Bonds issued in 2009 and paying issuance costs related to the 2019 Bonds.

Proceeds from the 2019 Bonds and reserve funds from the 2009 Bonds were deposited in a redemption fund to redeem the outstanding amount of $10,740,000 2009 Bonds on October 1, 2019.

Interest on the 2019 Bonds is payable semi-annually on October 1 and April 1 of year at rates ranging from 1.966% to 2.686% with principal payable October 1 commencing October 1, 2019. The 2019 Bonds are not subject to optional redemption prior to their stated maturities. A reserve fund has not been established for the 2019 Bonds.

The bonds are secured by a pledge of the net revenues received by the City for the sewer fees. Net Revenues will be equal to 120% of the fiscal year debt service if there is a transfer from a rate stabilization fund. Net revenues without the inclusion of a transfer from the rate stabilization fund will be at least equal to 100% of the fiscal year debt service requirement. Total principal and interest remaining to be paid on the bonds is $5,079,419. Principal and interest paid for the current fiscal year and customer net revenues were $1,017,088 and $447,612, respectively.

The total debt service requirements to maturity with respect to the certificates included in the business-type activities are as follows:

Year Ending June 30, Principal Interest Total
2026 905,000 $ 111,745 $ 1,016,745 $
2027 930,000 89,301 1,019,301
2028 950,000 65,135 1,015,135
2029 975,000 39,808 1,014,808
2030 1,000,000 13,430 1,013,430
Total 4,760,000 $ 319,419 $ 5,079,419 $

CITY OF COVINA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(72)
NOTE 13 LONG-TERM LIABILITIES (CONTINUED)
Business-Type Activities (Continued)
Revenue Bonds Payable, Water Enterprise Fund (Continued) BBVA Mortgage Corporation Note Payable
On December 1, 2020, the City through a private placement financed debt in the amount of $18,883,578 to provide $5,500,000 in funds for capital projects related to the water enterprise, deposit $13,284,326 in an escrow fund to refund in advance the 2010 Water Revenue Bonds and the 2010 Lease payable with the remaining funds were used for costs of issuance. The interest rate on the debt is 1.97% with interest and principal payable April 1 and October 1 each year commencing April 1, 2021 through October 1, 2040. In consideration for the BBVA Mortgage Corporation (the Corporation) assistance in refinancing the City’s prior obligations, the City sold water capital improvements to the Corporation and concurrently, the Corporation resold
Under the agreement, the City has covenanted that it will prescribe, revise and collect such charges for the services and facilities of its municipal water system which will produce gross revenues that will generate net revenues equal to 1.25 times the maximum debt service. Principal and interest paid for the current year for all water related debt and customer net revenues were $1,471,748 and $2,574,034, respectively.

The total debt service requirements to maturity with respect to the note payable included in the business-type activities are as follows:

Year Ending June 30, Principal Interest Total
2026 $ 976,921 $ 262,871 $ 1,239,792
2027 763,400 245,786 1,009,186
2028 777,173 230,689 1,007,862
2029 792,577 215,301 1,007,878
2030 809,509 199,614 1,009,123
2031-2035 4,293,267 751,279 5,044,546
2036-2040 4,733,639 309,276 5,042,915
2041 496,269 4,888 501,157
Total $ 13,642,755 $ 2,219,704 $ 15,862,459
NOTE 14 FUND BALANCES
As prescribed by GASB Statement No. 54, governmental funds report fund balance in classifications based primarily on the extent to which the City is bound to honor constraints on the specific Purposes for which amounts in the funds can be spent. As of June 30, 2025, fund balances for governmental funds are made up of the following:

Nonspendable Fund Balance – Nonspendable fund balance includes amounts that are (a) not in spendable form, or (b) legally or contractually required to be maintained intact.

The not in spendable form criterion includes items that are not expected to be converted to cash (for example, inventories, prepaid amounts and due from successor agency in the General Fund).

CITY OF COVINA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(73)
NOTE 14 FUND BALANCES (CONTINUED)
Restricted Fund Balance – Restricted fund balance includes amounts that can be spent only for the specific purposes stipulated by external resource providers, constitutionally or through enabling legislation. Restrictions may effectively be changed or lifted only with the consent of resource providers.

Committed Fund Balance – Committed fund balance includes amounts that can only be used for the specific purposes determined by a formal action of the City’s highest level of decision-making authority, the City Council. Commitments may be changed or lifted only by the City Council taking the same formal action that imposed the constraint originally (for example: resolution and ordinance). Ordinance is the highest level of the City Council’s approval.

Assigned Fund Balance – Assigned fund balance comprises amounts intended to be used by the City for specific purposes that are neither restricted nor committed. Intent is expressed by (a) the City Council or (b) a body (for example: a budget or finance committee) or official to which the City Council has delegated through its fund balance policy the authority to assign amounts to be used for specific purposes. Assigned amounts also include all residual amounts in governmental funds (except negative amounts) other than the General Fund, that are not classified as nonspendable, restricted, or committed.

Unassigned Fund Balance – Unassigned fund Balance is the residual classification for the General Fund and includes all amounts not contained in the other classifications.

Unassigned amounts are technically available for any purpose.

In circumstances when an expenditure is made for a purpose for which amounts are available in multiple fund balance classifications, fund balance is depleted in the order of restricted, committed, assigned, and unassigned.

The City Council adopted a Reserve Policy. The policy aims to help reduce the negative impact on the City in times of economic uncertainty and potential losses of funding from other governmental agencies. City reserves are restricted for one-time purposes. The policy establishes minimum requirements for General Fund nondepartmental reserves and provides guidelines for the use of these funds.

CITY OF COVINA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(74)
NOTE 14 FUND BALANCES (CONTINUED)
General Fund Nondepartmental Reserve Requirements
Appropriation for contingencies is maintained at 20% of total General Fund net appropriations for one-time emergencies and economic uncertainties. Excess fund balance at year-end must first be used to replenish the reserve amount at the 20% level.

General Park Nonmajor
Fund Measure W ARPA Development Governmental Total
Nonspendable:

Prepaid Items 214,729 $ - $ $ - $ - $ 9,684 $ 224,413
Restricted:

Culture and Recreation 256,873 - - - 780,245 1,037,118
Redevelopment and Housing - - - - 2,880,621 2,880,621
Community Development - - - - 134,809 134,809
Law Enforcement 64,794 - - - 751,506 816,300
Transportation and
Street Projects - - - - 6,567,465 6,567,465
Air Quality Projects - - - - 92,805 92,805
Assessment Districts - - - - 1,898,012 1,898,012
Storm Water - - - - 45,473 45,473
Other Capital Projects - 25,385,053 - - 600,638 25,985,691 Total Restricted 321,667 25,385,053 - - 13,751,574 39,458,294 Committed:

Emergency Contingency - 12,074,045 - - - 12,074,045
Community Development 150,008 - - - - 150,008
Engineering - 12,311 - - - 12,311
City Manager 50,000 - - - - 50,000
Finance 2,400 - - - - 2,400
Law Enforcement 131,631 - - - - 131,631
Economic Development 2,004 - - - - 2,004
Other Capital Projects 110,401 - - - - 110,401
Total Committed 12,532,800 - - - - 12,532,800
Assigned:

Community Development 2,520 - - - - 2,520
Unassigned 23,064,662 - - (3,278,365) (229,109) 19,557,188 Total Fund Balances $ 36,136,378 $ 25,385,053 $ - $ (3,278,365) $ 13,532,149 $ 71,775,215 NOTE 15 CONTINGENCIES
The City is involved in several pending lawsuits of a nature common to many similar jurisdictions. City management estimates that potential claims against the City, not covered by insurance, will not have a material adverse effect on the financial position of the City.

CITY OF COVINA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(75)
NOTE 16 OTHER POSTEMPLOYMENT BENEFITS (OPEB)
A. General Information about the OPEB Plan
Plan Description
The City provides retiree medical benefits under the CalPERS health plan which provides medical insurance benefits to eligible retirees and their spouses in accordance with various labor agreements. This plan is a single employer defined benefit plan and does not issue separate financial statements. Copies of the CalPERS’s annual financial report may be obtained from the CalPERS Executive Office, 400 P Street, Sacramento, California 95814. Eligible employees that do not participate in the CalPERS health plan are eligible to receive monthly payments from the City. These benefits are accounted for under the OPEB liability.

Eligibility
Employees are eligible for retiree health benefits if they retire from the City on or after age 50 (unless disabled) and are eligible for a PERS pension. The benefits are available only to employees who retire from the City. Membership of the plan consisted of the following at the June 30, 2025 measurement date:

Active Plan Members 184
Inactive Employees or Beneficiaries Currently
Receiving Benefit Payments 141
Total 325
Contributions
The contribution requirements of plan members and the City are established and may be amended by the City and the City Council. The City must agree to make a defined monthly payment toward the cost of each retiree’s overage. For fiscal year 2025, $437,531 was contributed as insurance premiums, $100,000 to the trust, and an implicit subsidy $214,478 totaling $752,009.

B. Net OPEB Liability
The City’s net OPEB liability was measured as of June 30, 2025, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of July 1, 2024.

CITY OF COVINA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(76)
NOTE 16 OTHER POSTEMPLOYMENT BENEFITS (OPEB) (CONTINUED) B. Net OPEB Liability (Continued)
Actuarial Assumptions
The total OPEB liability in the July 1, 2024 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified.

Valuation Date July 1, 2024
Funding Method Entry-age normal cost, level percent of pay Discount Rate 5.00%
Investment Rate of Return 5.00% per year net of expenses Inflation 2.50%
Aggregate Payroll Increases 2.75%
Mortality Rate - Miscellaneous Pre-Retirement Mortality Rates for Public Agency Miscellaneous from CalPERS Experience Study (2000-2019).

Post-Retirement Mortality Rates for Public Agency
Miscellaneous from CalPERS Experience Study (2000-2019).

Mortality Rate - Safety Pre-Retirement Mortality Rates for Public Agency Police and Fire from CalPERS Experience Study (2000-2019).

Post-Retirement Mortality Rates for Public Agency Police and Fire from CalPERS Experience Study (2000-2019).

Healthcare Trend Rate 7.00% for 2025 decreasing to 5.40% for 2029,

5.25% for 2030-2034, 4.60% for 2035-2049,

4.50% for 2050-2064, 4.25% for 2065-2074, and

4.00% for 2075 and later years; Medicare ages: 4.50% for 2024-2064, 4.25% for 2065-2074, and 4.00% for 2075 and
later years.

Long-Term Expected Rate of Return
The long-term expected rate of return on OPEB plan investments was determined using a building block method in which expected future real rates of return (expected returns, net of investment expense and inflation) are developed for each major asset class. The calculated investment rate of return was set equal to the expected ten-year compound (geometric) real rate of return plus inflation (rounded to the nearest 25 basis point where appropriate).

The table below reflects the long-term expected real rate of return by asset class (based on published capital market assumptions).

Assumed Asset Real Rate
Asset Class Allocation of Return
Broad U.S. Equity 20 % 4.40 %
U.S. Fixed 75 1.80
Cash Equivalents 50.20
Total 100 %

CITY OF COVINA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(77)
NOTE 16 OTHER POSTEMPLOYMENT BENEFITS (OPEB) (CONTINUED) B. Net OPEB Liability (Continued)
Discount Rate
GASB 75 generally requires that a blended discount rate be used to measure the Total OPEB Liability. The long-term expected return on plan investments may be used to discount liabilities to the extent that the plan’s Fiduciary Net Position (fair market value of assets) is projected to cover benefit payments and administrative expenses. A 20-year high quality (AA/Aa or higher) municipal bond rate must be used for periods where the Fiduciary Net Position is not projected to cover benefit payments and administrative expenses. Determining the discount rate under GASB 75 will often require that the actuary perform complex projections of future benefit payments and asset values. This has resulted in a blended discount rate of 5.00%, which takes into account the long-term expected rate of return of 5.00% and the Bond Buyer 20-Bond GO Index municipal bond rate of 5.20%.

Change in Assumptions
The discount rate was changed from 4.72% to 5.00%.

C. Change in the Net OPEB Liability
The changes in the net OPEB liability are as follows:

Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability/(Asset)
(a) (b) (c) = (a) - (b)
Balance at June 30, 2024 (Measurement Date) * 7,524,677 $ 1,394,677 $ 6,130,000 $ Changes Recognized for the Measurement Period:

Service Cost 280,823 - 280,823
Interest on the Total OPEB Liability 381,508 - 381,508
Differences Between Expected and
Actual Experience 486,089 - 486,089
Changes of Assumptions (159,695) - (159,695)
Contribution from the Employer - 752,009 (752,009)
Net Investment Income - 134,144 (134,144)
Administrative Expenses - (3,753) 3,753
Benefit Payments (652,009) (652,009) -
Net Changes During July 1, 2024 to
June 30, 2025 336,716 230,391 106,325
Balance at June 30, 2025 (Measurement Date) 7,861,393 $ 1,625,068 $ 6,236,325 $ Increase (Decrease)
* During the year the City adjusted the measurement date from June 30, 2024 to June 30, 2025 which resulted in a prior period adjustment described in Note 20.

CITY OF COVINA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(78)
NOTE 16 OTHER POSTEMPLOYMENT BENEFITS (OPEB) (CONTINUED) C. Change in the Net OPEB Liability (Continued)
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following presents 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 1-percentagepoint lower (4.00%) or 1-percentage-point higher (6.00%) than the current discount rate:
1% Current 1%
Decrease Discount Rate Increase
Net OPEB Liability (Asset) $ 7,288,502 $ 6,236,325 $ 5,375,168 The following presents 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 healthcare cost trend rate that is 1-percentage-point lower or 1-percentage-point higher than the current discount rate:

Healthcare
1% Cost Trend 1%
Decrease Rate Increase
Net OPEB Liability $ 6,236,325 5,423,618 $ 7,287,342 $
Subsequent Events
There were no subsequent events that would materially affect the results presented in this disclosure.

D. OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the year ended June 30, 2025, the City recognized OPEB expense of $581,630. At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences Between Actual and Expected Experience $ 940,858 $ - Change in Assumptions - (597,977)
Net Differences Between Projected and Actual Earnings - (45,872) Total $ 940,858 $ (643,849)
The change in assumptions and differences between actual and expected experience are amortized over the expected average remaining service life. The expected average remaining service life for the 2025 measurement period is 7.6 years.

CITY OF COVINA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(79)
NOTE 16 OTHER POSTEMPLOYMENT BENEFITS (OPEB) (CONTINUED) D. OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB (Continued)
Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized as OPEB expense as follows:

Year Ending June 30, Amount
2026 82,255 $
2027 44,218
2028 29,128
2029 39,120
2030 34,361
Thereafter 67,927
E. Payable to the OPEB Plan
At June 30, 2025, the City had no outstanding amount of contributions to the OPEB plan required for the year ended June 30, 2025.

F. GASB 74
For the measurement date June 30, 2025, as prescribed by GASB 74, the Total OPEB liability is $7,861,393, the OPEB plan fiduciary net position is $1,625,068 and the Net OPEB liability is $6,236,325.

NOTE 17 RELATED PARTY TRANSACTIONS
The City entered into an agreement with Covina Valley Water Company (the Company) for the pumping, treating, and delivering the water to City reservoirs. During the fiscal year, the City paid $3,531,407 to the Covina Valley Water Company for the services of pumping, treating, and delivery of water.

NOTE 18 ENCUMBRANCES
The City uses encumbrances to control expenditure commitments for the year and to enhance cash management. Encumbrances represent commitments related to contracts not yet performed and purchase orders not yet filled (executory contracts; and open purchase orders). Commitments for such expenditure of monies are encumbered to reserve a portion of applicable appropriations. Encumbrances still open at year-end are not accounted for as expenditures and liabilities but, rather, as restricted or assigned governmental fund balance.

CITY OF COVINA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(80)
NOTE 18 ENCUMBRANCES (CONTINUED)
As of June 30, 2025, total governmental fund encumbrance balances for the City are as follows:

General Fund $ 102,266
Measure W 666,754
Park Development Fund 17,786,418
Nonmajor Governmental Fund 4,341,176
Total Governmental Funds $ 22,896,614
NOTE 19 SUCCESSOR AGENCY TRUST FOR ASSETS OF THE FORMER REDEVELOPMENT

AGENCY (SACRA)
The assets and liabilities of the former Redevelopment Agency were transferred to the Successor Agency of the Covina Redevelopment Agency on February 1, 2012, as a result of the dissolution of the former Redevelopment Agency. The City is acting in a fiduciary capacity for the assets and liabilities. Disclosure related to long-term liabilities are as follows:

Long-Term Liabilities
Long-term liability activity for the year ended June 30, 2025 was as follows:

Beginning Net Ending Current
Balance Change Balance Portion
Compensated Absences $ 40,362 $ 39,687 $ 675 $ 643
Total Long-Term Liabilities, Net 40,362 $ $ 39,687 $ 675 $ 643 NOTE 20 RESTATEMENT
Correction of Error in Previously Issued Financial Statements During the year, the City identified an issue with the coding of certain planning fees totaling $974,084 that were recorded in the General Fund, however, should have been recorded in another governmental special revenue fund.

Additionally, during the year the City changed the measurement date for OPEB from June 30, 2024 to June 30, 2025 to match the fiscal year to be in compliance with GASB 74.

This resulted in an increase in Governmental Activities Net Position by $273,114, BusinessType Activities by $97,916, Water Utility Enterprise Fund by $66,043, Sewer Enterprise Fund by $18,961, Other Enterprise Funds by $12,912, and Internal Service Funds by $34,282.

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REQUIRED SUPPLEMENTARY INFORMATION

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CITY OF COVINA
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS –

MISCELLANEOUS

LAST TEN MEASUREMENT PERIODS
See accompanying Note to Required Supplementary Information. (83)
Fiscal Year Ended June 30, 2025 2024 2023 2022 2021
Measurement Period June 30, 2024 2023 2022 2021 2020
Total Pension Liability:

Service Cost 1,841,249 $ 1,633,504 $ 1,576,526 $ 1,411,076 $ 1,493,026 $ Interest on Total Pension Liability 7,368,866 7,640,017 7,125,461 6,951,248 6,728,565 Differences Between Expected and
Actual Experience 592,553 420,345 (107,352) 207,569 129,660 Changes in Assumptions - - 3,217,843 - -
Benefit Payments, Including Refunds
of Employee Contributions (5,910,702) (5,627,420) (5,619,036) (5,397,430) (5,150,041) Net Change in Total Pension Liability 3,795,295 4,163,117 6,193,442 3,172,463 3,201,210 Total Pension Liability - Beginning of Year 112,167,058 108,371,763 102,178,321 99,005,858 95,804,648 Total Pension Liability - End of Year (a) 116,330,175 112,167,058 108,371,763 102,178,321 99,005,858 Plan Fiduciary Net Position:

Contributions - Employer 1,440,158 1,137,667 28,388,909 2,994,204 2,794,762 Contributions - Employee 858,548 740,739 675,453 648,674 652,852 Plan to Plan Resource Movement - - - - (1,599)
Net Investment Income 9,210,849 5,721,884 (7,776,639) 15,110,547 3,264,202 Benefit Payments (5,910,702) (5,627,420) (5,619,036) (5,397,430) (5,150,041) Administrative Expense (80,264) (70,914) (50,344) (67,457) (93,130) Net Change in Plan Fiduciary Net Position 5,216,098 2,204,447 15,618,343 13,288,538 1,467,046 Plan Fiduciary Net Position - Beginning of Year 98,639,804 96,435,357 80,817,014 67,528,476 66,061,430 Plan Fiduciary Net Position - End of Year (b) 103,855,902 98,639,804 96,435,357 80,817,014 67,528,476 Net Pension Liability - Ending (a)-(b) $ 12,474,273 $ 13,527,254 $ 11,936,406 $ 21,361,307 $ 31,477,382 Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability 89.28% 87.94% 88.99% 79.09% 68.21% Covered Payroll $ 9,876,443 $ 8,786,730 $ 8,337,323 $ 7,882,583 $ 7,996,049 Net Pension Liability as Percentage of
Covered Payroll 126.30% 153.95% 143.17% 270.99% 393.66% Notes to Schedule:

Benefit Changes:

There were no changes in benefits.

Changes in Assumptions:

From fiscal year June 30, 2016 to June 30, 2017: There were no changes in assumptions.

From fiscal year June 30, 2017 to June 30, 2018: The discount rate was reduced from 7.65% to 7.15%.

From fiscal year June 30, 2018 to June 30, 2022: There were no significant changes in assumptions.

From fiscal year June 30, 2022 to June 30, 2023: The discount rate and long-term rate of return decreased from 7.15% to 6.90% and the inflation rate decreased from 2.50% to 2.30%.

From fiscal year June 30, 2023 to June 30, 2024: There were no significant changes in assumptions.

From fiscal year June 30, 2024 to June 30, 2025: There were no significant changes in assumptions.

From fiscal year June 30, 2015 to June 30, 2016: GASB 68, paragraph 68 states that the long-term expected rate of return should be determined net of pension plan investment expense but without reduction for pension plan administrative expense. The discount rate of 7.50% used for the June 30, 2014 measurement date was net of administrative expenses. The discount rate of 7.65% used for the June 30, 2015 measurement date is without reduction of pension plan administrative expense.

CITY OF COVINA
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS –

MISCELLANEOUS (CONTINUED)

LAST TEN MEASUREMENT PERIODS
See accompanying Note to Required Supplementary Information. (84)
Fiscal Year Ended June 30, 2020 2019 2018 2017 2016
Measurement Period June 30, 2019 2018 2017 2016 2015
Total Pension Liability:

Service Cost 1,380,689 $ 1,347,039 $ 1,152,992 $ 1,486,092 $ 1,420,544 $ Interest on Total Pension Liability 6,146,087 6,507,596 5,977,026 6,066,839 5,848,966 Differences Between Expected and
Actual Experience 2,271,369 90,424 (3,886,390) (362,755) 269,486 Changes in Assumptions - (479,050) 5,024,331 - (1,428,592) Benefit Payments, Including Refunds
of Employee Contributions (4,817,247) (4,633,255) (4,314,593) (4,154,693) (4,028,300) Net Change in Total Pension Liability 2,471,245 5,342,407 3,953,366 3,035,483 2,082,104 Total Pension Liability - Beginning of Year 90,462,241 87,990,996 84,037,630 81,002,147 78,920,043 Total Pension Liability - End of Year (a) 90,462,241 95,804,648 87,990,996 84,037,630 81,002,147 Plan Fiduciary Net Position:

Contributions - Employer 2,064,731 2,386,884 1,424,175 1,410,961 1,599,026 Contributions - Employee 656,805 666,102 565,326 578,334 781,508 Plan to Plan Resource Movement - (148) 24,693 - 9,481
Net Investment Income 4,117,352 5,103,206 6,234,088 296,745 1,328,803 Benefit Payments (4,817,247) (4,633,255) (4,314,593) (4,154,693) (4,028,300) Administrative Expense (45,355) (274,830) (84,138) (35,892) (66,233) Net Change in Plan Fiduciary Net Position 2,298,439 2,925,806 3,849,551 (1,904,545) (375,715) Plan Fiduciary Net Position - Beginning of Year 63,762,991 60,837,185 56,987,634 58,892,179 59,267,894 Plan Fiduciary Net Position - End of Year (b) 63,762,991 66,061,430 60,837,185 56,987,634 58,892,179 Net Pension Liability - Ending (a)-(b) $ 29,743,218 $ 26,699,250 $ 27,153,811 $ 27,049,996 $ 22,109,968 Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability 68.95% 70.49% 69.14% 67.81% 72.70% Covered Payroll $ 6,130,981 $ 6,130,981 $ 8,782,015 $ 8,497,600 $ 7,967,419 Net Pension Liability as Percentage of
Covered Payroll 485.13% 435.48% 309.20% 318.33% 277.50%

CITY OF COVINA
SCHEDULE OF CONTRIBUTIONS –

MISCELLANEOUS

LAST TEN FISCAL YEARS
See accompanying Note to Required Supplementary Information. (85)
Fiscal Year Ended June 30, 2025 2024 2023 2022 2021
Actuarially Determined Contribution $ 1,610,288 $ 1,093,602 $ 1,440,158 $ 3,287,810 $ 2,995,659 Contributions in Relation to the Actuarially
Determined Contributions (1,610,288) (1,093,602) (1,440,158) (28,389,913) (2,995,659) Contribution Deficiency (Excess) - $ $ - $ - $ (25,102,103) $ - Covered Payroll $ 10,947,602 $ 9,876,443 $ 8,786,730 $ 8,337,323 $ 7,882,583 Contributions as a Percentage of
Covered Payroll 14.71% 11.07% 16.39% 340.52% 38.00%
Notes to Schedule:

Valuation Date June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 Methods and Assumptions Used to Determine
Contribution Rates:

Actuarial Cost Method Entry Age Entry Age Entry Age Entry Age Entry Age Amortization Method (1) (1) (1) (1) (1)
Asset Valuation Method Fair Value Fair Value Fair Value Fair Value Fair Value Inflation 2.30% 2.30% 2.30% 2.50% 2.50%
Salary Increases (2) (2) (2) (2) (2)
Investment Rate of Return 6.90% (3) 6.90% (3) 6.90% (3) 7.00% (3) 7.00% (3) Mortality (4) (4) (4) (4) (4)
(1) Level percentage of payroll, closed.
(2) Depending on age, service and type of employment.
(3) Net of pension plan investment expense, including inflation. (4) Mortality assumptions are based on mortality rates resulting from the most recent CalPERS Experience Study adopted by the CalPERS Board.

CITY OF COVINA

SCHEDULE OF CONTRIBUTIONS

MISCELLANEOUS (CONTINUED)

LAST TEN FISCAL YEARS
See accompanying Note to Required Supplementary Information. (86)
Fiscal Year Ended June 30, 2020 2019 2018 2017 2016
Actuarially Determined Contribution $ 2,794,762 $ 2,386,725 $ 1,424,175 $ 1,430,571 $ 1,599,026 Contributions in Relation to the Actuarially
Determined Contributions (2,794,762) (2,386,725) (2,078,674) (1,430,571) (1,599,026) Contribution Deficiency (Excess) - $ $ - $ (654,499) $ - $ - Covered Payroll $ 7,996,049 $ 7,646,268 $ 6,130,981 $ 8,782,015 $ 8,497,600 Contributions as a Percentage of
Covered Payroll 34.95% 31.21% 33.90% 16.29% 18.82%
Notes to Schedule:

Valuation Date June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 June 30, 2013 Methods and Assumptions Used to Determine
Contribution Rates:

Actuarial Cost Method Entry Age Entry Age Entry Age Entry Age Entry Age Amortization Method (1) (1) (1) (1) (1)
Asset Valuation Method Fair Value Fair Value Fair Value Fair Value Fair Value Inflation 2.63% 2.75% 2.75% 2.75% 2.75%
Salary Increases (2) (2) (2) (2) (2)
Investment Rate of Return 7.25% (3) 7.375% (3) 7.50% (3) 7.50% (3) 7.50% (3) Mortality (4) (4) (4) (4) (4)
(1) Level percentage of payroll, closed.
(2) Depending on age, service and type of employment.
(3) Net of pension plan investment expense, including inflation. (4) Mortality assumptions are based on mortality rates resulting from the most recent CalPERS Experience Study adopted by the CalPERS Board.

CITY OF COVINA
SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY – SAFETY

LAST TEN MEASUREMENT PERIODS
See accompanying Note to Required Supplementary Information. (87)
Fiscal Year Ended June 30, 2025 2024 2023 2022 2021
Measurement Period June 30, 2024 2023 2022 2021 2020
Plan’s Proportion of the Net Pension Liability 0.24360% 0.24360% 0.24672% 0.77033% 0.58950% Plan’s Proportionate Share of the Net
Pension Liability $ 17,705,195 $ 18,208,795 $ 16,953,344 $ 27,034,631 $ 39,280,317 Plan’s Covered Payroll $ 8,153,199 $ 7,971,446 $ 7,155,333 $ 6,861,894 $ 6,490,821 Plan’s Proportionate Share of the Net
Pension Liability as a Percentage of
Covered Payroll 217.16% 228.43% 236.93% 393.98% 605.17% Plan’s Proportionate Share of the Fiduciary
Net Position as a Percentage of the Plan's
Total Pension Liability 88.44% 87.72% 79.78% 79.78% 75.26% Notes to Schedule:

Benefit Changes:

There were no changes in benefits.

Changes in Assumptions:

From fiscal year June 30, 2015 to June 30, 2016: GASB 68, paragraph 68 states that the long-term expected rate of return should be determined net of pension plan investment expense but without reduction for pension plan administrative expense. The discount rate of 7.50% used for the June 30, 2014 measurement date was net of administrative expenses. The discount rate of 7.65% used for the June 30, 2015 measurement date is without reduction of pension plan administrative expense.

From fiscal year June 30, 2016 to June 30, 2017: There were no changes in assumptions.

From fiscal year June 30, 2017 to June 30, 2018: The discount rate was reduced from 7.65% to 7.15%.

From fiscal year June 30, 2018 to June 30, 2022: There were no significant changes in assumptions.

From fiscal year June 30, 2022 to June 30, 2023: The discount rate and long-term rate of return decreased from 7.15% to 6.90% and the inflation rate decreased from 2.50% to 2.30%.

From fiscal year June 30, 2023 to June 30, 2024: There were no significant changes in assumptions.

CITY OF COVINA
SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY –

SAFETY (CONTINUED)

LAST TEN MEASUREMENT PERIODS
See accompanying Note to Required Supplementary Information. (88)
Fiscal Year Ended June 30, 2020 2019 2018 2017 2016
Measurement Period June 30, 2019 2018 2017 2016 2015
Plan’s Proportion of the Net Pension Liability 0.56627% 0.54852% 0.56064% 0.56696% 0.46197% Plan’s Proportionate Share of the Net
Pension Liability $ 35,349,515 $ 32,026,302 $ 30,950,899 $ 26,302,740 $ 19,035,092 Plan’s Covered Payroll $ 6,548,655 $ 6,325,051 $ 6,325,051 $ 6,672,936 $ 6,433,232 Plan’s Proportionate Share of the Net
Pension Liability as a Percentage of
Covered Payroll 539.80% 506.34% 489.34% 394.17% 295.89% Plan’s Proportionate Share of the Fiduciary
Net Position as a Percentage of the Plan's
Total Pension Liability 75.26% 85.14% 85.14% 79.48% 81.50%

CITY OF COVINA
SCHEDULE OF CONTRIBUTIONS –
SAFETY

LAST TEN FISCAL YEARS
See accompanying Note to Required Supplementary Information. (89)
Fiscal Year Ended June 30, 2025 2024 2023 2022 2021
Contractually Required Contribution
(Actuarially Determined) $ 2,452,482 $ 1,734,540 $ 2,241,062 $ 4,346,122 $ 3,885,326 Contributions in Relation to the Actuarially
Determined Contributions (2,452,482) (1,734,540) (2,241,062) (36,196,719) (3,885,326) Contribution Deficiency (Excess) $ - $ - $ - $ (31,850,597) $ - Covered Payroll $ 8,234,798 $ 8,153,199 $ 7,971,446 $ 7,155,333 $ 6,861,894 Contributions as a Percentage of Covered
Payroll 29.78% 21.27% 28.11% 505.87% 56.62%
Notes to Schedule:

Valuation Date June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 Methods and Assumptions Used to Determine
Contribution Rates:

Actuarial Cost Method Entry Age Entry Age Entry Age Entry Age Entry Age Amortization Method (1) (1) (1) (1) (1)
Asset Valuation Method Fair Value Fair Value Fair Value Fair Value Fair Value Inflation 2.30% 2.30% 2.30% 2.50% 2.50%
Salary Increases (2) (2) (2) (2) (2)
Investment Rate of Return 6.9% (3) 6.9% (3) 6.9% (3) 7.00% (3) 7.00% (3) Mortality (4) (4) (4) (4) (4)
(1) Level percentage of payroll, closed.
(2) Depending on age, service and type of employment.
(3) Net of pension plan investment expense, including inflation. (4) Mortality assumptions are based on mortality rates resulting from the most recent CalPERS Experience Study adopted by the CalPERS Board.

CITY OF COVINA
SCHEDULE OF CONTRIBUTIONS –

SAFETY (CONTINUED)

LAST TEN FISCAL YEARS
See accompanying Note to Required Supplementary Information. (90)
Fiscal Year Ended June 30, 2020 2019 2018 2017 2016
Measurement Period June 30, 2019 2018 2017 2016 2015
Plan’s Proportion of the Net Pension Liability 0.56627% 0.54852% 0.56064% 0.56696% 0.46197% Plan’s Proportionate Share of the Net
Pension Liability 35,349,515 $ 32,026,302 $ 30,950,899 $ 26,302,740 $ 19,035,092 $ Plan’s Covered Payroll 6,548,655 $ 6,325,051 $ 6,325,051 $ 6,672,936 $ 6,433,232 $ Plan’s Proportionate Share of the Net
Pension Liability as a Percentage of
Covered Payroll 539.80% 506.34% 489.34% 394.17% 295.89% Plan’s Proportionate Share of the Fiduciary
Net Position as a Percentage of the Plan's
Total Pension Liability 75.26% 85.14% 85.14% 79.48% 81.50%

CITY OF COVINA

OTHER POSTEMPLOYMENT BENEFITS (OPEB)

SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS LAST TEN MEASUREMENT PERIODS*
See accompanying Note to Required Supplementary Information. (91)
Fiscal Year Ended June 30, 2025 2024 2023 2022 2021 2020 2019 2018 Measurement Period June 30, 2025 (1) 2023 2022 2021 2020 2019 2018 2017 Total OPEB Liability:

Service Cost $ 280,823 $ 219,590 $ 252,323 $ 263,838 $ 315,436 $ 271,591 $ 173,634 $ 155,856 Interest on Total OPEB Liability 381,508 323,307 273,031 252,672 234,306 253,720 285,949 287,858 Difference Between Expected and
Actual Experience 486,089 737,525 - 770,579 - - (963,933) - Change in Assumptions and Other
Inputs (159,695) (15,932) (286,721) (348,629) (631,555) 355,233 1,264,415 - Benefit Payments, Including Refunds
and the Implied Subsidy Benefit
Payments (652,009) (557,768) (554,251) (556,834) (510,755) (457,669) (411,596) (413,635) Net Change in Total OPEB Liability 336,716 (30,803) 421,907 (388,953) 248,035 422,875 348,469 30,079 Total OPEB Liability - Beginning of Year 7,524,677 7,610,279 7,188,372 7,577,325 7,329,290 6,906,415 6,557,946 6,527,867 Total OPEB Liability - End of Year (a) 7,861,393 7,579,476 7,610,279 7,188,372 7,577,325 7,329,290 6,906,415 6,557,946 Plan Fiduciary Net Position:

Contributions - Employer 752,009 557,768 654,251 1,056,834 510,755 457,669 411,596 413,635 Net Investment Income 134,144 29,046 (127,979) 47,030 27,077 34,489 9,519 18,600 Administrative Expenses (3,753) (6,183) (6,675) (3,353) (3,091) (2,728) (2,630) (2,372) Benefit Payments, Including Refunds
and the Implied Subsidy Benefit
Payments (652,009) (557,768) (554,251) (556,834) (510,755) (457,669) (411,596) (413,635) Net Change in Plan Fiduciary Net Position 230,391 22,863 (34,654) 543,677 23,986 31,761 6,889 16,228 Plan Fiduciary Net Position -
Beginning of Year 1,394,677 1,055,583 1,090,237 546,560 522,574 490,813 483,924 467,696 Plan Fiduciary Net Position -
End of Year (b) 1,625,068 1,078,446 1,055,583 1,090,237 546,560 522,574 490,813 483,924 Net OPEB Liability - Ending (a)-(b) $ 6,236,325 $ 6,501,030 $ 6,554,696 $ 6,098,135 $ 7,030,765 $ 6,806,716 $ 6,415,602 $ 6,074,022 Plan Fiduciary Net Position as a
Percentage of the Total OPEB Liability 20.67% 14.23% 13.87% 15.17% 7.21% 7.13% 7.11% 7.38% Covered - Employee Payroll 22,483,367 $ 21,814,848 $ 20,087,715 $ 19,596,677 $ 18,127,870 $ 17,042,879 $ 13,316,004 $ 12,959,615 $ Net OPEB Liability as Percentage of
Covered - Employee Payroll 27.74% 29.80% 32.63% 31.12% 38.78% 39.94% 48.18% 46.87% Notes to Schedule:
(1) See note 20 for restatement due to change in measurement period.

Benefit Changes:

There were no changes in benefits.

Changes in Assumptions:
* Fiscal year 2018 was the first year of implementation and, therefore, only eight years are shown.

The fiscal year ended June 30, 2018 is the first year of implementation. For fiscal year ended June 30, 2020, discount rate was changed to 3.17% from 3.65%, inflation rate remained 3.0% and health care trend was changed to 5.9% in 2019 decreasing to 5% in 2028. For fiscal year ended June 30, 2021, the discount rate was changed to

3.34% from 3.17% and the health care trend rate was changed to 4% decreasing to 3.5% for 2024 and later years. For fiscal year ended June 30, 2022, the discount rate was changed to 3.81% from 3.34% and the health care trend rate was changed to 4.0% for 2021-2023, 5.2% for 2024-2069 and 4.0% for 2070 and later. For fiscal year ended June 30, 2023, the discount rate was changed to 4.28% from 3.81% and the health care trend rate was changed to 6.50% for 2022, 6.00% for 2023, 5.50% for 2024, 5.25% for 2025-2029, 5.00% for 2030-2039, 4.75% for 2040-2049, 4.50% for 2050-2069, and 4.00% for 2070 and later years; Medicare ages: 4.50% for 2022-2029 and 4.00% for 2030 and later years. For fiscal year ended June 30, 2024, the discount rate was changed to 4.30% from 4.28% and the health care trend rate was changed to 6.00% for 2023, 5.50% for 2024, 5.25% for 2025-2029, 5.00% for 2030-2039, 4.75% for 2040-2049, 4.50% for 2050-2069, and 4.00% for 2070 and later years; Medicare ages: 4.50% for 2023-2029 and 4.00% for 2030 and later years. For fiscal year 2025 the discount rate was changed to 5.00% from 4.30%

CITY OF COVINA

OTHER POSTEMPLOYMENT BENEFITS (OPEB)

SCHEDULE OF CONTRIBUTIONS
LAST TEN FISCAL YEARS*
See accompanying Note to Required Supplementary Information. (92)
Fiscal Year Ended June 30, 2025 2024 2023 2022 2021 2020 2019 2018 Actuarially Determined Contribution $ 780,035 $ 720,929 $ 701,634 $ 490,144 $ 556,834 $ 511,353 $ 497,668 $ 409,995 Contributions in Relation to the
Actuarially Determined Contributions (752,009) (749,208) (559,989) (553,834) (477,026) (511,353) (497,668) (409,995) Contribution Deficiency
(Excess) $ 28,026 $ (28,279) $ 141,645 $ (63,690) $ 79,808 $ - $ - $ - Covered Employee Payroll $ 26,100,629 $ 22,483,367 $ 21,814,848 $ 20,087,715 $ 19,596,677 $ 18,127,870 $ 17,042,879 $ 13,316,004 Contributions as a Percentage
of Covered Employee Payroll 2.88% 3.33% 2.57% 2.76% 2.43% 2.82% 2.92% 3.08% Notes to Schedule:

Valuation Date June 30, 2024 June 30, 2022 June 30, 2022 June 30, 2020 June 30, 2020 June 30, 2018 June 30, 2018 June 30, 2017 Methods and Assumptions Used to
Determine Contribution Rates:

Discount Rate 5.00% 4.30% 4.28% 3.69% 2.45% 3.17% 3.65% 4.50% Inflation 2.50% 2.75% 2.75% 2.75% 2.75% 3.00% 3.00% 2.75% Mortality Rate (2) (2) (2) (2) (2) (1) (1) (1)
Healthcare Trend Rate
(1) 2014 CalPERS Mortality Rate for Active Safety, Retired Safety and Active Miscellaneous. (2) 2017 CalPERS Mortality Rate for Active Safety, Retired Safety and Active Miscellaneous. * Fiscal year 2018 was the first year of implementation and, therefore, only eight years are shown.

CITY OF COVINA

BUDGETARY COMPARISON SCHEDULE

GENERAL FUND
YEAR ENDED JUNE 30, 2025
See accompanying Note to Required Supplementary Information. (93)
Variance with
Final Budget
Positive
Original Final Actual (Negative)

RESTATED BUDGETARY FUND BALANCE -
BEGINNING OF YEAR $ 38,314,823 38,314,823 $ 38,314,823 $ - $ Resources (Inflows):

Property Taxes 16,785,000 17,870,000 18,999,802 1,129,802 Sales Tax, Intergovernmental 20,030,000 19,330,000 20,036,945 706,945 Transient Occupancy Taxes 280,000 220,000 157,193 (62,807) Property Transfer Taxes 200,000 200,000 251,463 51,463
Business License Taxes 370,000 370,000 421,764 51,764
Utility User Taxes 5,900,000 5,750,000 6,315,245 565,245 Franchise Taxes 2,362,500 2,362,500 2,489,668 127,168
Licenses and Permits 1,443,650 1,691,487 1,535,642 (155,845) Intergovernmental 987,800 1,194,665 1,254,534 59,869
Charges for Services 4,053,941 4,263,944 4,498,393 234,449 Fines and Forfeits 1,199,500 699,500 781,877 82,377
Investment Earnings 720,000 700,000 2,938,604 2,238,604 Miscellaneous 702,125 810,299 957,564 147,265
Lease Proceeds - - 42,122 42,122
Transfers In 8,819,473 15,804,493 285,590 (15,518,903)
Amounts Available for Appropriation 102,168,812 109,581,711 99,281,229 (10,300,482) Charges to Appropriations (Outflows):

Current:

General Government 3,464,825 3,530,360 2,957,806 572,554 Public Safety 39,190,355 39,610,581 37,469,096 2,141,485 Public Works 3,049,440 3,192,257 2,705,633 486,624
Culture and Recreation 5,934,354 6,008,662 5,061,918 946,744 Community Development 3,405,376 9,248,508 8,740,267 508,241 Debt Service:

Principal Retirement 2,334,893 2,334,893 2,334,893 -
Interest and Fiscal Charges (2,329,893) (2,329,893) 1,100,610 (3,430,503) Transfers Out 8,718,398 25,384,459 2,774,628 22,609,831 Total Charges to Appropriation 63,767,748 86,979,827 63,144,851 23,834,976 BUDGETARY FUND BALANCE - END OF YEAR $ 38,401,064 $ 22,601,884 $ 36,136,378 $ 13,534,494 Budgeted Amounts

CITY OF COVINA

BUDGETARY COMPARISON SCHEDULE

MEASURE W FUND
YEAR ENDED JUNE 30, 2025
See accompanying Note to Required Supplementary Information. (94)
Variance with
Final Budget
Final Positive
Budget Actual (Negative)

BUDGETARY FUND BALANCE -
BEGINNING OF YEAR $ 16,112,310 16,112,310 $ - $
Resources (Inflows):

Intergovernmental 8,815,082 9,313,975 498,893
Investment Earnings 2,800 744,220 741,420
Amounts Available for Appropriation 24,930,192 26,170,505 1,240,313 Charges to Appropriations (Outflows):

Capital Outlay 16,380,550 785,452 15,595,098
Total Charges to Appropriation 16,380,550 785,452 15,595,098 BUDGETARY FUND BALANCE - END OF YEAR $ 25,385,053 8,549,642 $ 16,835,411 $

CITY OF COVINA

NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2025
(95)
NOTE 1 STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
A. Budgetary Information
The City follows these procedures in establishing the budgetary data reflected in the financial statements:

1. City departments submit budget and service requests to the City Manager. The City Manager prepares a recommended budget to be presented to the City Council.

2. The annual budget is adopted by the City Council on or before June 30 of each fiscal year after holding public hearings to receive input for the general operation of the City. The operating budget includes proposed expenditures and the means of financing them.

3. The appropriated budget is prepared by fund, program and activity. Departments may make appropriation transfers within activities. The City Manager is authorized to make appropriation transfers between activities within funds excluding the contingency appropriation. The City Council approves total budgeted appropriations and any amendments between funds and the use of contingency appropriation. This appropriated budget covers City expenditures in all governmental funds. Actual expenditures may not exceed budgeted appropriations at the fund level. Budget figures used in the accompanying financial statements are the original budget including prior year carryovers and the final budget including current year amendments.

4. Formal budgetary integration is employed as a management control device during the year. Commitments for materials and services, such as purchase orders and contracts, are recorded as encumbrances to assist in controlling expenditures.

Encumbrances at year-end lapse, and then are added to the following year’s budgeted appropriations.

5. Annual budgets for governmental funds are adopted on a basis consistent with accounting principles generally accepted in the United States of America.

Accordingly, actual revenues and expenditures can be compared with related budgeted amounts without any significant reconciling items other than the American Rescue Plan Act (ARPA) Fund, Impact Special Revenue Fund, and EIFD Special Revenue Fund which did not have an adopted budget. No budgetary comparisons are presented for the proprietary funds, as the City is not legally required to adopt budgets for this fund type.

6. Appropriation for capital projects and certain grants and contributions authorized but not constructed or completed during the year lapse at year-end, and then are included as part of appropriations in the following years’ annual budget.

CITY OF COVINA

NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2025
(96)
NOTE 1 STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY (CONTINUED) A. Budgetary Information (Continued)

7. Under Article XIIIB of the California Constitution (the Gann Spending Limitation), the City is restricted as to the amount of annual appropriations from proceeds of taxes, and if proceeds of taxes exceed allowed appropriations, the excess must either be refunded to the State Controller or returned to the taxpayers through revised tax rates, revised fee schedules or other refund arrangements.

SUPPLEMENTARY INFORMATION

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CITY OF COVINA

OTHER GOVERNMENTAL FUNDS

NONMAJOR GOVERNMENTAL FUNDS
(99)
Special revenue funds account for revenues derived from specific taxes or other earmarked revenue sources. They are usually required by statute or local ordinance and/or resolution to finance particular functions, or activities. Nonmajor special revenue governmental funds of the City are as follows:

Community Development Block Grant Fund – is a special revenue fund that accounts for the funding from the Department of Housing and Urban Development (HUD) in the form of a Community Block Grant (CDBG) program. The program has specific federal guidelines and all CDBG fund expenditures are monitored for compliance with both federally mandated rules and regulations and County of Los Angeles regulations.

Proposition A Transit Fund – accounts for the receipts of the City’s share of the 1/2 cent sales tax levied in Los Angeles County for local transit uses.

Law Enforcement Fund – accounts for federal and state local law enforcement grants and subventions to finance certain police activities.

Narcotic Seizure Fund – accounts for receipts and disbursements associated with the federal, state, and local narcotic seizure programs.

State Gas Tax Fund – accounts for money apportioned by state statutes of the state of California to provide financing for street maintenance and improvements.

Proposition C Local Return Fund – accounts for financial activities for the City’s share of Proposition C monies; designated for transportation related activities.

Air Quality Improvement Fund – accounts for the motor vehicle fee for air and environmental improvements.

Municipal Parking District Fund – accounts for receipts and expenditures for electricity, lot maintenance, and engineering services in the various municipal parking lots.

Lighting Assessment District Fund – accounts for special assessment collections from benefited properties for street lighting energy and maintenance.

Landscaping Assessment District Fund – accounts for special assessment collections from benefited properties for landscape maintenance activities.

Community Facilities District Fund – accounts for special assessment collections from benefited properties for community facilities maintenance activities.

Shoppers Lane Parking District Fund – accounts for certain business tax registrations to finance parking maintenance and improvements in Shoppers Lane.

Measure M Fund – accounts for monies received from Measure M allocation, which can be used to major street resurfacing, rehabilitation and reconstruction; pothole repair; left turn signals; bikeway; pedestrian improvements; streetscapes; signal synchronizations; and transit operations.

CITY OF COVINA

OTHER GOVERNMENTAL FUNDS

NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)
(100)
TDA Grant Fund – accounts for monies received from the California State Transit Development Act of 1971 on a per capita basis to California cities for transit and non-transit related purposes that comply with regional transition plans, which can be used for construction of pedestrian and bicycle facilities.

Road Maintenance and Rehabilitation Act Fund – accounts for the deferred maintenance on the state highway system and the local street and road system.

PEG access Television Fund – accounts for the fees received from the cable operators for administration and improvement to any public, educational, and government access television.

Housing Authority Fund – administers the housing assets, liabilities, duties, and obligations related to the housing activities retained by the City following the dissolution of the Covina Redevelopment Agency. This fund receives the majority of its revenues from collections and interest on loans.

Measure R Fund – accounts for monies received from Measure R allocation, which can be used for major street resurfacing, rehabilitation and reconstruction; pothole repair; left turn signals; bikeway; pedestrian improvements; streetscapes; signal synchronizations; and transit operations.

Other Grants Fund – accounts for the various state grant monies for various programs of the City.

Impact Grant Fund – accounts for County Grant Monies used to fund certain Police activities.

EIFD Fund – serves as a catalyst for private investment and critical regional infrastructure to support affordable housing and economic development in the City of Covina and the San Gabriel Valley region of Los Angeles County.

Capital projects funds are used to finance and account for the acquisition and construction of major capital facilities other than those financed by other governmental type and proprietary funds. Nonmajor capital projects governmental funds of the City are as follows:

General Capital Fund – accounts for major infrastructure and general improvements not accounted for in other governmental and proprietary funds.

Covina Revitalization Projects Fund – accounts for the proceeds from the issuance of 2004 Taxable Tax Allocation Bonds used for the Covina Revitalization Project No. One project cost.

Transportation Fund – accounts for monies used for various Public Works Capital Improvement Projects.

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CITY OF COVINA

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2025
(102)
Community
Development Law
Block Grant Proposition A Enforcement
ASSETS
Cash and Investments - $ $ 2,900,978 $ 55,026
Cash and Investments - Restricted - - -
Receivables:

Accounts - 463 -
Interest - 6,439 -
Leases - 247,906 -
Loans 307,112 - -
Due from Other Governments 5,459 - 50,000
Prepaid Items - 8,856 -
Total Assets $ 312,571 $ 3,164,642 $ 105,026

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES

LIABILITIES
Accounts Payable $ 1,647 $ 95,185 $ 4,514
Accrued Liabilities - - -
Deposits Payable - 7,500 -
Due to Other Governments 307,112 - -
Due to Other Funds 3,812 - -
Unearned Revenue - - -
Total Liabilities 312,571 102,685 4,514

DEFERRED INFLOWS OF RESOURCES
Deferred Inflows - Leases - 242,121 -
Unavailable Revenue - - -
Total Deferred Inflows of Resources - 242,121 -

FUND BALANCES (DEFICITS)
Nonspendable - 8,856 -
Restricted for:

Redevelopment and Housing - - -
Community Development - - -
Law Enforcement - - 100,512
Transportation and Street Projects - 2,810,980 -
Air Quality Projects - - -
Assessment Districts - - -
Culture and Recreation - - -
Storm Water - - -
Other Capital Projects - - -
Unassigned - - -
Total Fund Balances (Deficits) - 2,819,836 100,512
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 312,571 $ 3,164,642 $ 105,026

CITY OF COVINA

COMBINING BALANCE SHEET (CONTINUED)

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2025
(103)
Air Municipal Lighting
Narcotics State Gas Quality Parking Assessment
Seizure Tax Proposition C Improvement District District $ - 360,585 $ 1,779,460 $ 93,024 $ 930,068 $ 2,510 $
- - - - - -
- - - - 2,924 -
- - - - 610 -
- - - - 184,894 -
- - - - - -
121,256 - - - 1,281 1,337
828 - - - - -
$ 122,084 360,585 $ 1,779,460 $ 93,024 $ 1,119,777 $ 3,847 $ $ 105,881 - $ 205,581 $ 219 $ 4,006 $ 21,784 $
- - - - 148 -
- - - - - 8,500
- - - - - -
53,918 - - - - -
- - - - - -
159,799 - 205,581 219 4,154 30,284
- - - - 179,945 -
- - - - - -
- - - - 179,945 -
828 - - - - -
- - - - - -
- - - - - -
- 360,585 - - - -
- - 1,573,879 - - -
- - - 92,805 - -
- - - - 935,678 -
- - - - - -
- - - - - -
- - - - - -
(38,543) - - - - (26,437)
(37,715) 360,585 1,573,879 92,805 935,678 (26,437)
$ 122,084 360,585 $ 1,779,460 $ 93,024 $ 1,119,777 $ 3,847 $

CITY OF COVINA

COMBINING BALANCE SHEET (CONTINUED)

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2025
(104)
Landscaping Community Shoppers Lane
Assessment Facilities Parking
District District District
ASSETS
Cash and Investments $ 656,480 $ 282,064 $ 67,764
Cash and Investments - Restricted - - -
Receivables:

Accounts - - 90
Interest - - -
Leases - - -
Loans - - -
Due from Other Governments 3,855 6,303 -
Prepaid Items - - -
Total Assets $ 660,335 $ 288,367 $ 67,854

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES

LIABILITIES
Accounts Payable $ 31,369 $ 169 $ -
Accrued Liabilities - - -
Deposits Payable 8,500 13,500 -
Due to Other Governments - - -
Due to Other Funds - - -
Unearned Revenue - - 684
Total Liabilities 39,869 13,669 684

DEFERRED INFLOWS OF RESOURCES
Deferred Inflows - Leases - - -
Unavailable Revenue - - -
Total Deferred Inflows of Resources - - -

FUND BALANCES (DEFICITS)
Nonspendable - - -
Restricted for:

Redevelopment and Housing - - -
Community Development - - -
Law Enforcement - - -
Transportation and Street Projects - - -
Air Quality Projects - - -
Assessment Districts 620,466 274,698 67,170
Culture and Recreation - - -
Storm Water - - -
Other Capital Projects - - -
Unassigned - - -
Total Fund Balances (Deficits) 620,466 274,698 67,170
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 660,335 $ 288,367 $ 67,854

CITY OF COVINA

COMBINING BALANCE SHEET (CONTINUED)

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2025
(105)
Road PEG
Maintenance and Access Housing Other
Measure M Rehabilitation Television Authority Measure R Grants Fund $ 649,590 72,611 $ 588,989 $ 2,911,810 $ - $ 218,550 $
- - - - 783 -
- - 12,037 - - 2,604
- - - - - -
- - - - - -
- - - - - -
246,697 - - - - 420,059
- - - - - -
$ 896,287 72,611 $ 601,026 $ 2,911,810 $ 783 $ 641,213 $ $ 103,991 35,198 $ 3,435 $ 25,519 $ - $ 124,977 $
- - - - - -
- - - 5,670 - -
- - - - - -
- - - - 20,768 -
- - - - - 347,278
103,991 35,198 3,435 31,189 20,768 472,255
- - - - - -
- - - - - 313,102
- - - - - 313,102
- - - - - -
- - - 2,880,621 - -
- - - - - -
- - - - - -
792,296 37,413 - - - -
- - - - - -
- - - - - -
- - 597,591 - - -
- - - - - -
- - - - - -
- - - - (19,985) (144,144)
792,296 37,413 597,591 2,880,621 (19,985) (144,144)
$ 896,287 72,611 $ 601,026 $ 2,911,810 $ 783 $ 641,213 $

CITY OF COVINA

COMBINING BALANCE SHEET (CONTINUED)

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2025
(106)
Total
Impact Special
Grant Fund EIFD Fund Revenue Funds
ASSETS
Cash and Investments $ 29,630 $ 51,768 $ 11,650,907
Cash and Investments - Restricted - - 783
Receivables:

Accounts - 8,405 26,523
Interest - - 7,049
Leases - - 432,800
Loans - - 307,112
Due from Other Governments - - 856,247
Prepaid Items - - 9,684
Total Assets $ 29,630 $ 60,173 $ 13,291,105

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES

LIABILITIES
Accounts Payable $ - $ - $ 763,475
Accrued Liabilities - - 148
Deposits Payable - - 43,670
Due to Other Governments - - 307,112
Due to Other Funds - - 78,498
Unearned Revenue 29,630 - 377,592
Total Liabilities 29,630 - 1,570,495

DEFERRED INFLOWS OF RESOURCES
Deferred Inflows - Leases - - 422,066
Unavailable Revenue - - 313,102
Total Deferred Inflows of Resources - - 735,168

FUND BALANCES (DEFICITS)
Nonspendable - - 9,684
Restricted for:

Redevelopment and Housing - - 2,880,621
Community Development - - -
Law Enforcement - - 461,097
Transportation and Street Projects - 60,173 5,274,741
Air Quality Projects - - 92,805
Assessment Districts - - 1,898,012
Culture and Recreation - - 597,591
Storm Water - - -
Other Capital Projects - - -
Unassigned - - (229,109)
Total Fund Balances (Deficits) - 60,173 10,985,442
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 29,630 $ 60,173 $ 13,291,105

CITY OF COVINA

COMBINING BALANCE SHEET (CONTINUED)

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2025
(107)
Covina Total Total Nonmajor
General Revitalization Capital Governmental
Projects Projects Transportation Projects Funds
$ 134,809 2,657,165 $ - $ 2,791,974 $ 14,442,881 $
- - - - 783
- 842 - 842 27,365
- - - - 7,049
- - - - 432,800
- - - - 307,112
- - - - 856,247
- - - - 9,684
$ 134,809 2,658,007 $ - $ 2,792,816 $ 16,083,921 $
$ - 246,109 $ - $ 246,109 $ 1,009,584 $
- - - - 148
- - - - 43,670
- - - - 307,112
- - - - 78,498
- - - - 377,592
- 246,109 - 246,109 1,816,604
- - - - 422,066
- - - - 313,102
- - - - 735,168
- - - - 9,684
- - - - 2,880,621
134,809 - - 134,809 134,809
- 290,409 - 290,409 751,506
- 1,292,724 - 1,292,724 6,567,465
- - - - 92,805
- - - - 1,898,012
- 182,654 - 182,654 780,245
- 45,473 - 45,473 45,473
- 600,638 - 600,638 600,638
- - - - (229,109)
134,809 2,411,898 - 2,546,707 13,532,149
$ 134,809 2,658,007 $ - $ 2,792,816 $ 16,083,921 $

CITY OF COVINA

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2025
(108)
Community
Development Law
Block Grant Proposition A Enforcement

REVENUES
Property Taxes $ - $ - $ -
Business License Taxes - - -
Intergovernmental 269,222 1,368,724 586,088
Charges for Services - 222,101 -
Special Assessments - - -
Investment Earnings - 133,332 8,000
Miscellaneous - - -
Total Revenues 269,222 1,724,157 594,088

EXPENDITURES
Current:

Public Safety - - 625,722
Public Works - - -
Culture and Recreation - - -
Transit - 1,225,853 -
Redevelopment and Housing 90,157 - -
Capital Outlay - - -
Debt Service:

Principal Retirement 125,000 - -
Interest 54,065 - -
Total Expenditures 269,222 1,225,853 625,722

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES - 498,304 (31,634)

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing Sources (Uses) - - -
NET CHANGE IN FUND BALANCES - 498,304 (31,634)
Fund Balances (Deficits) - Beginning of Year,
as Previously Reported - 2,321,532 132,146
Correction of Error - - -
Fund Balances (Deficits) - Beginning of Year,
as Restated - 2,321,532 132,146
FUND BALANCES (DEFICITS) - END OF YEAR $ - $ 2,819,836 $ 100,512

CITY OF COVINA

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)
YEAR ENDED JUNE 30, 2025
(109)
Air Municipal Lighting
Narcotics State Gas Quality Parking Assessment
Seizure Tax Proposition C Improvement District District $ - - $ - $ - $ 173,631 $ 134,107 $
- - - - - -
1,425,559 2,061 1,095,835 66,660 - -
- - - - 127,726 -
- - - - - -
2,123 15,888 75,637 3,485 8,228 -
- - - - - -
1,427,682 17,949 1,171,472 70,145 309,585 134,107
- - - - - -
1,625,075 - - 28,380 187,135 275,296
- - - - - -
- - - - - -
- - - - - -
- - 801,277 - - -
- - - - - -
- - - - - -
1,625,075 - 801,277 28,380 187,135 275,296
(197,393) 17,949 370,195 41,765 122,450 (141,189)
- - - - - 184,516
- - - - - -
- - - - - 184,516
(197,393) 17,949 370,195 41,765 122,450 43,327
159,678 342,636 1,203,684 51,040 813,228 (69,764)
- - - - - -
159,678 342,636 1,203,684 51,040 813,228 (69,764)
$ (37,715) 360,585 $ 1,573,879 $ 92,805 $ 935,678 $ (26,437) $

CITY OF COVINA

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)
YEAR ENDED JUNE 30, 2025
(110)
Landscaping Community Shoppers Lane
Assessment Facilities Parking
District District District

REVENUES
Property Taxes $ 214,348 $ - $ -
Business License Taxes - - 1,535
Intergovernmental - - -
Charges for Services - - 17,490
Special Assessments - 483,881 -
Investment Earnings - - -
Miscellaneous - - -
Total Revenues 214,348 483,881 19,025

EXPENDITURES
Current:

Public Safety - - -
Public Works 226,071 6,840 8,654
Culture and Recreation - - -
Transit - - -
Redevelopment and Housing - - -
Capital Outlay - - -
Debt Service:

Principal Retirement - - -
Interest - - -
Total Expenditures 226,071 6,840 8,654

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (11,723) 477,041 10,371

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - (285,591) -
Total Other Financing Sources (Uses) - (285,591) -
NET CHANGE IN FUND BALANCES (11,723) 191,450 10,371
Fund Balances (Deficits) - Beginning of Year,
as Previously Reported 632,189 83,248 56,799
Correction of Error - - -
Fund Balances (Deficits) - Beginning of Year,
as Restated 632,189 83,248 56,799
FUND BALANCES (DEFICITS) - END OF YEAR $ 274,698 620,466 $ 67,170 $

CITY OF COVINA

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)
YEAR ENDED JUNE 30, 2025
(111)
Road PEG
Maintenance and Access Housing Other
Measure M Rehabilitation Television Authority Measure R Grants Fund $ - - $ - $ - $ - $ - $
- - - - - -
1,399,931 930,986 - - 821,724 714,406
- - 51,235 - - -
- - - - - -
64,649 12,045 - 132,761 13,984 (6,314)
- - - - - 5,886
1,464,580 943,031 51,235 132,761 835,708 713,978
- - - - - 516,066
2,402,044 - - - - 18,810
- - 55,357 - - 78,252
- - - - - -
- - - 312,886 - 55,409
- 1,165,260 - - 1,351,251 121,246
- - - - 220,000 -
- - - - 150,077 -
2,402,044 1,165,260 55,357 312,886 1,721,328 789,783
(937,464) (222,229) (4,122) (180,125) (885,620) (75,805) - - - - - -
- - - - - -
- - - - - -
(937,464) (222,229) (4,122) (180,125) (885,620) (75,805) 1,729,760 259,642 601,713 3,060,746 865,635 (68,339)
- - - - - -
1,729,760 259,642 601,713 3,060,746 865,635 (68,339)
$ 792,296 37,413 $ 597,591 $ 2,880,621 $ (19,985) $ (144,144) $

CITY OF COVINA

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)
YEAR ENDED JUNE 30, 2025
(112)
Total
Impact Special
Grant Fund EIFD Fund Revenue Funds

REVENUES
Property Taxes $ - $ 60,632 $ 582,718
Business License Taxes - - 1,535
Intergovernmental 3,352 - 8,684,548
Charges for Services - - 418,552
Special Assessments - - 483,881
Investment Earnings - - 463,818
Miscellaneous - - 5,886
Total Revenues 3,352 60,632 10,640,938

EXPENDITURES
Current:

Public Safety 3,352 - 1,145,140
Public Works - 459 4,778,764
Culture and Recreation - - 133,609
Transit - - 1,225,853
Redevelopment and Housing - - 458,452
Capital Outlay - - 3,439,034
Debt Service:

Principal Retirement - - 345,000
Interest - - 204,142
Total Expenditures 3,352 459 11,729,994

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES - 60,173 (1,089,056)

OTHER FINANCING SOURCES (USES)
Transfers In - - 184,516
Transfers Out - - (285,591)
Total Other Financing Sources (Uses) - - (101,075)
NET CHANGE IN FUND BALANCES - 60,173 (1,190,131)
Fund Balances (Deficits) - Beginning of Year,
as Previously Reported - - 12,175,573
Correction of Error - - -
Fund Balances (Deficits) - Beginning of Year,
as Restated - - 12,175,573
FUND BALANCES (DEFICITS) - END OF YEAR $ - $ 60,173 $ 10,985,442

CITY OF COVINA

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)
YEAR ENDED JUNE 30, 2025
(113)
Covina Total Total Nonmajor
General Revitalization Capital Governmental
Projects Projects Transportation Projects Funds
$ - 46,987 $ - $ 46,987 $ 629,705 $
- - - - 1,535
- 12,776 72,262 85,038 8,769,586
- - - - 418,552
- 626,705 - 626,705 1,110,586
7,508 61,430 - 68,938 532,756
- - 260,242 260,242 266,128
7,508 747,898 332,504 1,087,910 11,728,848
- - - - 1,145,140
- - - - 4,778,764
- - - - 133,609
- - - - 1,225,853
- - - - 458,452
149,499 1,152,300 260,241 1,562,040 5,001,074
- - - - 345,000
- - - - 204,142
149,499 1,152,300 260,241 1,562,040 13,292,034
(141,991) (404,402) 72,263 (474,130) (1,563,186)
- 428,407 - 428,407 612,923
- - - - (285,591)
- 428,407 - 428,407 327,332
(141,991) 24,005 72,263 (45,723) (1,235,854)
276,800 1,413,809 (72,263) 1,618,346 13,793,919
- 974,084 - 974,084 974,084
276,800 2,387,893 (72,263) 2,592,430 14,768,003
$ 134,809 2,411,898 $ - $ 2,546,707 $ 13,532,149 $

CITY OF COVINA

BUDGETARY COMPARISON SCHEDULE

COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2025
(114)
Variance with
Final Budget
Final Positive
Budget Actual (Negative)

BUDGETARY FUND BALANCE -
BEGINNING OF YEAR $ - $ - $ -
Resources (Inflows):

Intergovernmental 537,247 269,222 (268,025)
Amounts Available for Appropriation 537,247 269,222 (268,025) Charges to Appropriations (Outflows):

Redevelopment and Housing 358,182 90,157 268,025
Debt Service:

Principal 125,000 125,000 -
Interest and Fiscal Charges 54,065 54,065 -
Total Charges to Appropriation 537,247 269,222 268,025
BUDGETARY FUND BALANCE - END OF YEAR $ - $ - $ -

CITY OF COVINA

BUDGETARY COMPARISON SCHEDULE

PROPOSITION A SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025
(115)
Variance with
Final Budget
Final Positive
Budget Actual (Negative)

BUDGETARY FUND BALANCE -
BEGINNING OF YEAR $ 2,321,532 2,321,532 $ - $
Resources (Inflows):

Intergovernmental 1,465,599 1,368,724 (96,875)
Charges for Services 243,984 222,101 (21,883)
Investment Earnings 10,000 133,332 123,332
Amounts Available for Appropriation 4,041,115 4,045,689 4,574 Charges to Appropriations (Outflows):

Transit 2,159,324 1,225,853 933,471
Capital Outlay 60,000 - 60,000
Total Charges to Appropriation 2,219,324 1,225,853 993,471 BUDGETARY FUND BALANCE - END OF YEAR $ 2,819,836 1,821,791 $ 998,045 $

CITY OF COVINA

BUDGETARY COMPARISON SCHEDULE

LAW ENFORCEMENT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025
(116)
Variance with
Final Budget
Final Positive
Budget Actual (Negative)

BUDGETARY FUND BALANCE -
BEGINNING OF YEAR $ 132,146 132,146 $ - $
Resources (Inflows):

Intergovernmental 1,023,566 586,088 (437,478)
Investment Earnings - 8,000 8,000
Amounts Available for Appropriation 1,155,712 726,234 (429,478) Charges to Appropriations (Outflows):

Public Safety 966,895 625,722 341,173
Total Charges to Appropriation 966,895 625,722 341,173
BUDGETARY FUND BALANCE - END OF YEAR $ 188,817 $ 100,512 $ (88,305)

CITY OF COVINA

BUDGETARY COMPARISON SCHEDULE

NARCOTICS SEIZURE SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025
(117)
Variance with
Final Budget
Final Positive
Budget Actual (Negative)

BUDGETARY FUND BALANCE -
BEGINNING OF YEAR $ 342,636 $ 342,636 $ -
Resources (Inflows):

Intergovernmental - 2,061 2,061
Investment Earnings - 15,888 15,888
Amounts Available for Appropriation 342,636 360,585 17,949 BUDGETARY FUND BALANCE - END OF YEAR $ 342,636 $ 360,585 $ 17,949

CITY OF COVINA

BUDGETARY COMPARISON SCHEDULE

STATE GAS TAX SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025
(118)
Variance with
Final Budget
Final Positive
Budget Actual (Negative)

BUDGETARY FUND BALANCE -
BEGINNING OF YEAR $ 159,678 $ 159,678 $ -
Resources (Inflows):

Intergovernmental 1,378,861 1,425,559 46,698
Investment Earnings 1,200 2,123 923
Amounts Available for Appropriation 1,539,739 1,587,360 47,621 Charges to Appropriations (Outflows):

Public Works 1,591,164 1,625,075 (33,911)
Total Charges to Appropriation 1,591,164 1,625,075 (33,911)

BUDGETARY FUND BALANCE (DEFICIT) -
END OF YEAR $ (37,715) (51,425) $ 13,710 $

CITY OF COVINA

BUDGETARY COMPARISON SCHEDULE

PROPOSITION C SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025
(119)
Variance with
Final Budget
Final Positive
Budget Actual (Negative)

BUDGETARY FUND BALANCE -
BEGINNING OF YEAR $ 1,203,684 1,203,684 $ - $
Resources (Inflows):

Intergovernmental 1,174,681 1,095,835 (78,846)
Investment Earnings 30,000 75,637 45,637
Amounts Available for Appropriation 2,408,365 2,375,156 (33,209) Charges to Appropriations (Outflows):

Capital Outlay 1,630,439 801,277 829,162
Total Charges to Appropriation 1,630,439 801,277 829,162 BUDGETARY FUND BALANCE - END OF YEAR $ 1,573,879 777,926 $ 795,953 $

CITY OF COVINA

BUDGETARY COMPARISON SCHEDULE

AIR QUALITY IMPROVEMENT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025
(120)
Variance with
Final Budget
Final Positive
Budget Actual (Negative)

BUDGETARY FUND BALANCE -
BEGINNING OF YEAR $ 51,040 $ 51,040 $ -
Resources (Inflows):

Intergovernmental 64,000 66,660 2,660
Investment Earnings - 3,485 3,485
Amounts Available for Appropriation 115,040 121,185 6,145 Charges to Appropriations (Outflows):

Public Works 28,231 28,380 (149)
Total Charges to Appropriation 28,231 28,380 (149)
BUDGETARY FUND BALANCE - END OF YEAR $ 86,809 $ 92,805 $ 5,996

CITY OF COVINA

BUDGETARY COMPARISON SCHEDULE

MUNICIPAL PARKING SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025
(121)
Variance with
Final Budget
Final Positive
Budget Actual (Negative)

BUDGETARY FUND BALANCE -
BEGINNING OF YEAR $ 813,228 813,228 $ - $
Resources (Inflows):

Property Taxes 165,739 173,631 7,892
Charges for Services 94,744 127,726 32,982
Investment Earnings - 8,228 8,228
Amounts Available for Appropriation 1,073,711 1,122,813 49,102 Charges to Appropriations (Outflows):

Public Works 161,430 187,135 (25,705)
Total Charges to Appropriation 161,430 187,135 (25,705) BUDGETARY FUND BALANCE - END OF YEAR $ 935,678 912,281 $ 23,397 $

CITY OF COVINA

BUDGETARY COMPARISON SCHEDULE

LIGHTING ASSESSMENT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025
(122)
Variance with
Final Budget
Final Positive
Budget Actual (Negative)

BUDGETARY FUND BALANCE (DEFICIT) -
BEGINNING OF YEAR $ (69,764) $ (69,764) $ -
Resources (Inflows):

Property Taxes 132,500 134,107 1,607
Transfers In 184,516 184,516 -
Amounts Available for Appropriation 247,252 248,859 1,607 Charges to Appropriations (Outflows):

Public Works 265,309 275,296 (9,987)
Total Charges to Appropriation 265,309 275,296 (9,987)

BUDGETARY FUND BALANCE (DEFICIT) -
END OF YEAR $ (26,437) (18,057) $ (8,380) $

CITY OF COVINA

BUDGETARY COMPARISON SCHEDULE

LANDSCAPING ASSESSMENT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025
(123)
Variance with
Final Budget
Final Positive
Budget Actual (Negative)

BUDGETARY FUND BALANCE -
BEGINNING OF YEAR $ 632,189 632,189 $ - $
Resources (Inflows):

Property Taxes 216,779 214,348 (2,431)
Amounts Available for Appropriation 848,968 846,537 (2,431) Charges to Appropriations (Outflows):

Public Works 240,289 226,071 14,218
Total Charges to Appropriation 240,289 226,071 14,218
BUDGETARY FUND BALANCE - END OF YEAR $ 620,466 608,679 $ 11,787 $

CITY OF COVINA

BUDGETARY COMPARISON SCHEDULE

COMMUNITY FACILITIES DISTRICT ASSESSMENT SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2025
(124)
Variance with
Final Budget
Final Positive
Budget Actual (Negative)

BUDGETARY FUND BALANCE -
BEGINNING OF YEAR $ 83,248 $ 83,248 $ -
Resources (Inflows):

Special Assessments 300,000 483,881 183,881
Amounts Available for Appropriation 383,248 567,129 183,881 Charges to Appropriations (Outflows):

Public Works 14,409 6,840 7,569
Transfers Out 285,591 285,591 -
Total Charges to Appropriation 300,000 292,431 7,569
BUDGETARY FUND BALANCE - END OF YEAR $ 83,248 $ 274,698 $ 191,450

CITY OF COVINA

BUDGETARY COMPARISON SCHEDULE

SHOPPERS LANE PARKING DISTRICT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025
(125)
Variance with
Final Budget
Final Positive
Budget Actual (Negative)

BUDGETARY FUND BALANCE -
BEGINNING OF YEAR $ 56,799 56,799 $ - $
Resources (Inflows):

Business License Taxes 2,000 1,535 (465)
Charges for Services 18,000 17,490 (510)
Amounts Available for Appropriation 76,799 75,824 (975) Charges to Appropriations (Outflows):

Public Works 11,564 8,654 2,910
Total Charges to Appropriation 11,564 8,654 2,910
BUDGETARY FUND BALANCE - END OF YEAR $ 67,170 65,235 $ 1,935 $

CITY OF COVINA

BUDGETARY COMPARISON SCHEDULE

MEASURE M SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025
(126)
Variance with
Final Budget
Final Positive
Budget Actual (Negative)

BUDGETARY FUND BALANCE -
BEGINNING OF YEAR $ 259,642 259,642 $ - $
Resources (Inflows):

Intergovernmental 1,998,479 930,986 (1,067,493)
Investment Earnings 5,000 12,045 7,045
Amounts Available for Appropriation 2,263,121 1,202,673 (1,060,448) Charges to Appropriations (Outflows):

Capital Outlay 2,263,121 1,165,260 1,097,861
Total Charges to Appropriation 2,263,121 1,165,260 1,097,861 BUDGETARY FUND BALANCE - END OF YEAR $ 37,413 - $ 37,413 $

CITY OF COVINA

BUDGETARY COMPARISON SCHEDULE

ROAD MAINTENANCE AND REHABILITATION SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2025
(127)
Variance with
Final Budget
Final Positive
Budget Actual (Negative)

BUDGETARY FUND BALANCE -
BEGINNING OF YEAR $ 1,729,760 1,729,760 $ - $
Resources (Inflows):

Intergovernmental 1,228,566 1,399,931 171,365
Investment Earnings 6,000 64,649 58,649
Amounts Available for Appropriation 2,964,326 3,194,340 230,014 Charges to Appropriations (Outflows):

Public Works 2,830,839 2,402,044 428,795
Total Charges to Appropriation 2,830,839 2,402,044 428,795 BUDGETARY FUND BALANCE - END OF YEAR $ 792,296 133,487 $ 658,809 $

CITY OF COVINA

BUDGETARY COMPARISON SCHEDULE

PEG ACCESS TELEVISION SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025
(128)
Variance with
Final Budget
Final Positive
Budget Actual (Negative)

BUDGETARY FUND BALANCE -
BEGINNING OF YEAR $ 601,713 $ 601,713 $ -
Resources (Inflows):

Charges for Services 70,000 51,235 (18,765)
Amounts Available for Appropriation 671,713 652,948 (18,765) Charges to Appropriations (Outflows):

Culture and Recreation 647,732 55,357 592,375
Total Charges to Appropriation 647,732 55,357 592,375
BUDGETARY FUND BALANCE - END OF YEAR $ 23,981 $ 597,591 $ 573,610

CITY OF COVINA

BUDGETARY COMPARISON SCHEDULE

HOUSING AUTHORITY SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025
(129)
Variance with
Final Budget
Final Positive
Budget Actual (Negative)

BUDGETARY FUND BALANCE -
BEGINNING OF YEAR $ 3,060,746 3,060,746 $ - $
Resources (Inflows):

Intergovernmental 1,778,506 - (1,778,506)
Investment Earnings 6,000 132,761 126,761
Amounts Available for Appropriation 4,845,252 3,193,507 (1,651,745) Charges to Appropriations (Outflows):

Current:

Redevelopment and Housing 4,048,797 312,886 3,735,911
Total Charges to Appropriation 4,048,797 312,886 3,735,911 BUDGETARY FUND BALANCE - END OF YEAR $ 2,880,621 796,455 $ 2,084,166 $

CITY OF COVINA

BUDGETARY COMPARISON SCHEDULE

MEASURE R SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025
(130)
Variance with
Final Budget
Final Positive
Budget Actual (Negative)

BUDGETARY FUND BALANCE -
BEGINNING OF YEAR $ 865,635 $ 865,635 $ -
Resources (Inflows):

Intergovernmental 881,011 821,724 (59,287)
Investment Earnings 9,843 13,984 4,141
Amounts Available for Appropriation 1,756,489 1,701,343 (55,146) Charges to Appropriations (Outflows):

Capital Outlay 1,365,730 1,351,251 14,479
Debt Service:

Principal Retirement 220,000 220,000 -
Interest and Fiscal Charges 150,688 150,077 611
Total Charges to Appropriation 1,736,418 1,721,328 15,090

BUDGETARY FUND BALANCE (DEFICIT) -
END OF YEAR $ 20,071 $ (19,985) $ (40,056)

CITY OF COVINA

BUDGETARY COMPARISON SCHEDULE

OTHER GRANTS SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025
(131)
Variance with
Final Budget
Final Positive
Budget Actual (Negative)

BUDGETARY FUND BALANCE (DEFICIT) -
BEGINNING OF YEAR $ (68,339) $ - (68,339) $
Resources (Inflows):

Intergovernmental 2,402,639 714,406 (1,688,233)
Investment Earnings - (6,314) (6,314)
Miscellaneous 219,661 5,886 (213,775)
Amounts Available for Appropriation 2,553,961 645,639 (1,908,322) Charges to Appropriations (Outflows):

Public Safety 708,717 516,066 192,651
Public Works 20,307 18,810 1,497
Culture and Recreation 106,779 78,252 28,527
Redevelopment and Housing 1,272,459 55,409 1,217,050
Capital Outlay 121,246 121,246 -
Total Charges to Appropriation 2,229,508 789,783 1,439,725

BUDGETARY FUND BALANCE (DEFICIT) -
END OF YEAR $ (144,144) 324,453 $ (468,597) $

CITY OF COVINA

BUDGETARY COMPARISON SCHEDULE

GENERAL PROJECTS FUND CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30, 2025
(132)
Variance with
Final Budget
Final Positive
Budget Actual (Negative)

BUDGETARY FUND BALANCE -
BEGINNING OF YEAR $ 2,387,893 $ 2,387,893 $ -
Resources (Inflows):

Property Taxes - 46,987 46,987
Intergovernmental 1,129,696 12,776 (1,116,920)
Special Assessments - 626,705 626,705
Investment Earnings - 61,430 61,430
Transfers In 890,200 428,407 (461,793)
Amounts Available for Appropriation 4,407,789 3,564,198 (843,591) Charges to Appropriations (Outflows):

Capital Outlay 2,763,970 1,152,300 1,611,670
Total Charges to Appropriation 2,763,970 1,152,300 1,611,670 BUDGETARY FUND BALANCE - END OF YEAR $ 1,643,819 $ 2,411,898 $ 768,079

CITY OF COVINA

BUDGETARY COMPARISON SCHEDULE

COVINA REVITALIZATION CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30, 2025
(133)
Variance with
Final Budget
Final Positive
Budget Actual (Negative)

BUDGETARY FUND BALANCE -
BEGINNING OF YEAR $ 276,800 276,800 $ - $
Resources (Inflows):

Investment Earnings 7,508 - 7,508
Amounts Available for Appropriation 284,308 276,800 7,508 Charges to Appropriations (Outflows):

Capital Outlay 149,499 208,482 58,983
Total Charges to Appropriation 149,499 208,482 58,983
BUDGETARY FUND BALANCE - END OF YEAR $ 134,809 68,318 $ 66,491 $

CITY OF COVINA
BUDGETARY COMPARISON SCHEDULE – MAJOR FUND

TRANSPORTATION CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30, 2025
(134)
Variance with
Final Budget
Positive
Original Final Actual (Negative)

BUDGETARY FUND BALANCE (DEFICIT) -
BEGINNING OF YEAR $ (72,263) $ (72,263) $ (72,263) $ -
Resources (Inflows):

Intergovernmental 4,000,000 7,722,262 72,262 (7,650,000) Miscellaneous - 260,242 260,242 -
Amounts Available for Appropriation 3,927,737 7,910,241 260,241 (7,650,000) Charges to Appropriations (Outflows):

Capital Outlay 4,000,000 7,910,241 260,241 7,650,000
Total Charges to Appropriation 4,000,000 7,910,241 260,241 7,650,000 BUDGETARY FUND BALANCE - END OF YEAR $ (72,263) $ - $ - $ - Budgeted Amounts

CITY OF COVINA
BUDGETARY COMPARISON SCHEDULE – MAJOR FUND

PARK DEVELOPMENT CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30, 2025
(135)
Variance with
Final Budget
Positive
Original Budget Actual (Negative)

BUDGETARY FUND BALANCE (DEFICIT) -
BEGINNING OF YEAR $ (384,364) (384,364) $ (384,364) $ - $ Resources (Inflows):

Intergovernmental 25,785,575 25,785,575 2,878,392 (22,907,183) Transfers In 7,547,026 7,547,026 919,155 (6,627,871)
Amounts Available for Appropriation 32,948,237 32,948,237 3,413,183 (29,535,054) Charges to Appropriations (Outflows):

Community Development 1,318,079 1,318,079 215,128 1,102,951 Capital Outlay 30,158,604 30,158,604 6,476,420 23,682,184 Total Charges to Appropriation 31,476,683 31,476,683 6,691,548 24,785,135

BUDGETARY FUND BALANCE (DEFICIT) -
END OF YEAR $ 1,471,554 $ 1,471,554 $ (3,278,365) $ (4,749,919) Budgeted Amounts

CITY OF COVINA

NONMAJOR ENTERPRISE FUNDS
JUNE 30, 2025
(136)
The following are the individual nonmajor enterprise funds of the City:

Environmental Fund – accounts for the general and administrative, environmental services, industrial waste, and waste management operations.

Theater Fund – accounts for the operation and production of public entertainment and economic development in downtown Covina.

CITY OF COVINA

COMBINING STATEMENT OF NET POSITION

NONMAJOR ENTERPRISE FUNDS
JUNE 30, 2025
(137)
Total
Nonmajor
Environmental Theater Enterprise
ASSETS Fund Fund Funds
Current Assets:

Cash and Investments 1,339,677 $ 239,063 $ 1,578,740 $
Accounts Receivable, Net 244 115 ,890 360 ,868 ,758
Interest Receivable - 715 715
Lease Receivable 71,671 - 71,671
Prepaid Items 12,481 82 12,563
Total Current Assets 1,597,048 427,399 2,024,447
Noncurrent Assets:

Lease Receivable 220,973 - 220,973
Capital Assets:

Capital Assets, not Depreciated 17,696 - 17,696
Capital Assets, Depreciated, Net 1,635,662 6,397,044 8,032,706 Total Noncurrent Assets 1,653,358 6,618,017 8,271,375
Total Assets 3,250,406 7,045,416 10,295,822

DEFERRED OUTFLOWS OF RESOURCES
Deferred Amount on OPEB Plans 30,693 - 30,693
Deferred Amount on Pension Plans 116,202 26,605 142,807 Total Deferred Outflows of Resources 146,895 26,605 173,500

LIABILITIES
Current Liabilities:

Accounts Payable 87,308 13,299 100,607
Accrued Liabilities 10 - 10 ,000 ,000
Deposits Payable 734,132 11,830 745,962
Interest Payable 7,462 20,745 28,207
Compensated Absences 35,308 462 35,770
Pension Obligation Bonds Payable 38,683 - 38,683
Total Current Liabilities 902,893 56,336 959,229
Noncurrent Liabilities:

Compensated Absences 79,564 - 79,564
Advance from Sewer Fund - 2,511,929 2,511,929
Pension Bonds Payable 712,635 - 712,635
Net OPEB Liability 193,415 - 193,415
Net Pension Liability 370,486 84,825 455,311
Total Noncurrent Liabilities 1,356,100 2,596,754 3,952,854 Total Liabilities 2,258,993 2,653,090 4,912,083

DEFERRED INFLOWS OF RESOURCES
Deferred Amounts on OPEB Plans 21,078 - 21,078
Deferred Amounts on Leases - 253 253 ,977 ,977
Total Deferred Inflows of Resources 21,078 253,977 275,055

NET POSITION
Net Investment in Capital Assets 1,653,358 6,397,044 8,050,402 Unrestricted (2,232,090) (536,128) (2,768,218)
Total Net Position 1,117,230 $ 4,164,954 $ 5,282,184 $

CITY OF COVINA

COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION

NONMAJOR ENTERPRISE FUNDS
YEAR ENDED JUNE 30, 2025
(138)
Total
Nonmajor
Environmental Theater Enterprise
Fund Fund Funds

OPERATING REVENUES
Charges for Services - $ $ 123,200 $ 123,200
Environmental Fees 1,155,789 - 1,155,789
Total Operating Revenues 1,155,789 123,200 1,278,989

OPERATING EXPENSES
General and Administrative 546,682 355,909 902,591
Street Sweeping 174,928 - 174,928
Environmental Services 230,146 - 230,146
Industrial Waste 46,504 - 46,504
Waste Management 345,726 - 345,726
Depreciation 73,291 161,121 234,412
Total Operating Expenses 1,417,277 517,030 1,934,307
OPERATING LOSS (261,488) (393,830) (655,318)

NONOPERATING REVENUES (EXPENSES)
Investment Income 58,113 20,446 78,559
Interest Expense (17,933) (40,330) (58,263)
Rental Income - 88,134 88,134
Total Nonoperating Revenues 40,180 68,250 108,430
LOSS BEFORE TRANSFERS (221,308) (325,580) (546,888)

TRANSFERS
Transfers Out (1,085) - (1,085)
CHANGE IN NET POSITION (222,393) (325,580) (547,973)
Fund Balances - Beginning of Year, as Previously Reported 1,328,010 4,489,235 5,817,245 Correction of Error 11,613 1,299 12,912
Fund Balances - Beginning of Year, as Restated 1,339,623 4,490,534 5,830,157 NET POSITION - END OF YEAR $ 1,117,230 $ 4,164,954 $ 5,282,184

CITY OF COVINA

COMBINING STATEMENT OF CASH FLOWS

NONMAJOR ENTERPRISE FUNDS
YEAR ENDED JUNE 30, 2025
(139)
Total
Nonmajor
Environmental Theater Enterprise
Fund Fund Funds

CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Customers 1,149,341 $ 128,615 $ 1,277,956 $ Cash Payments to Suppliers of Goods
and Services (531,446) (358,178) (889,624)
Cash Payments to Employees for Services (525,650) (118,581) (644,231) Net Cash Provided (Used) by Operating Activities 92,245 (348,144) (255,899)

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Cash Paid to Other Funds (1,085) - (1,085)

CASH FLOWS FROM CAPITAL AND RELATED FINANCING

ACTIVITIES
Acquisition of Capital Assets (94,529) (20,001) (114,530) Cash Received - Leases - 135,981 135,981
Principal Paid (119,963) (38,407) (158,370)
Interest and Debt Issuance Costs (18,051) (41,321) (59,372) Net Cash Used by Capital and Related
Financing Activities (150,987) (45,304) (196,291)

CASH FLOWS FROM INVESTING ACTIVITIES
Investment Income 58,113 20,061 78,174
NET DECREASE IN CASH AND CASH EQUIVALENTS (373,387) (1,714) (375,101) Cash and Cash Equivalents - Beginning of Year 1,341,391 612,450 1,953,841 CASH AND CASH EQUIVALENTS - END OF YEAR $ 239,063 1,339,677 $ 1,578,740 $

CITY OF COVINA

COMBINING STATEMENT OF CASH FLOWS

NONMAJOR ENTERPRISE FUNDS (CONTINUED)
YEAR ENDED JUNE 30, 2025
(140)
Total
Nonmajor
Environmental Theater Enterprise
Fund Fund Funds

RECONCILIATION OF OPERATING LOSS TO NET CASH

PROVIDED (USED) BY OPERATING ACTIVITIES
Operating Loss (261,488) $ (393,830) $ (655,318) $
Adjustments to Reconcile Operating Loss to Net Cash
Provided (Used) by Operating Activities:

Depreciation 73,291 161,121 234,412
Changes in Operating Assets, Deferred Outflows
of Resources, Liabilities, and Deferred Inflows of
Resources:
(Increase) Decrease in:

Accounts Receivable (6,448) 5,415 (1,033)
Prepaid Items (11,364) (82) (11,446)
Deferred Outflows of Resources on OPEB Plan 31,194 - 31,194 Deferred Outflows of Resources on Pension Plans 89,732 (3,577) 86,155 Increase (Decrease) in:

Accounts Payable 15,237 (82,636) (67,399)
Deposits Payable 203,702 3,248 206,950
Deferred Inflows of Resources of OPEB Plan (6,142) - (6,142) Deferred Inflows of Resources Leases - (77,044) (77,044) Compensated Absences 13,697 462 14,159
Net OPEB Liability 3,751 1,299 5,050
Net Pension Liability (52,917) 37,480 (15,437)
Net Cash Provided (Used) by Operating Activities $ 92,245 $ (348,144) $ (255,899)

CITY OF COVINA

INTERNAL SERVICES FUNDS
JUNE 30, 2025
(141)
The internal service funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the government and to other government units, on a cost reimbursement basis. Generally accepted accounting principles (GAAP) requires statement of net position items, and revenues and expenses of individual internal service funds be consolidated with the government-wide statement of net position and activities. GAAP still requires internal service funds to be presented in the financial statements.

The following are the individual internal service funds of the City:

Management Information Systems Fund – accounts for the accumulation and allocation of costs associated with data processing and electronic information technology.

Central Equipment Fund – accounts for the rental of motor vehicles to other departments and related costs.

Workers’ Compensation Fund – accounts for worker’s compensation to other departments.

General Liability Fund – accounts for general liability charges to other departments and related costs.

Building Maintenance Fund – accounts for all maintenance and improvement activities for all City facilities with the exception of the Police Department.

CITY OF COVINA

COMBINING STATEMENT OF NET POSITION

INTERNAL SERVICES FUNDS
JUNE 30, 2025
(142)
Management
Information Central Workers’ General Building
Systems Equipment Compensation Liability Maintenance Total ASSETS
Current Assets:

Cash and Cash Equivalents 1,613,959 $ 3,064,775 $ 7,316,945 $ 4,740,574 $ 1,063,094 $ 17,799,347 $ Accounts Receivable - 72,681 - 12,263 - 84,944
Interest Receivable - - - - 245 245
Lease Receivable - - - - 21,654 21,654
Prepaid Items 73,149 - - - 583 73,732
Inventories - 69,436 - - - 69,436
Total Current Assets 1,687,108 3,206,892 7,316,945 4,752,837 1,085,576 18,049,358 Noncurrent Assets:

Capital Assets:

Being Depreciated, Net 504,810 1,110,711 - 2,183,689 - 3,799,210 Total Noncurrent Assets 504,810 1,110,711 - 2,183,689 - 3,799,210 Total Assets 2,191,918 4,317,603 7,316,945 4,752,837 3,269,265 21,848,568

DEFERRED OUTFLOWS OF

RESOURCES
OPEB Related 31,456 53,906 12,423 6,216 3,661 107,662
Pension Related 133,808 42,646 37,169 47,341 95,074 356,038 Total Deferred Outflow of
Resources 165,264 96,552 49,592 53,557 98,735 463,700

LIABILITIES
Current Liabilities:

Accounts Payable 36,060 134,653 6,382 246,039 112,198 535,332 Interest Payable 8,497 6,626 2,937 1,733 - 19,793
Compensated Absences Payable 33,829 4,505 9,165 10,291 20,358 78,148 Lease Payable - 23,307 - - - 23,307
Pension Obligation Bonds Payable 44,049 34,191 15,224 8,984 - 102,448 Claims and Judgements - - 931,000 1,246,000 - 2,177,000 Total Current Liabilities 122,435 203,282 964,708 1,513,047 132,556 2,936,028 Noncurrent Liabilities:

Compensated Absences Payable 61,836 8,619 17,042 14,053 23,423 124,973 Pension Obligation Bonds Payable 811,484 629,877 280,456 165,516 - 1,887,333 Claims and Judgements - - 4,009,020 2,338,119 - 6,347,139 Net OPEB Liability 207,403 202,138 64,325 60,235 5,022 539,123 Net Pension Liability 426,620 135,970 118,506 150,939 303,125 1,135,160 Total Noncurrent Liabilities 1,507,343 976,604 4,489,349 2,728,862 331,570 10,033,728 Total Liabilities 1,629,778 1,179,886 5,454,057 4,241,909 464,126 12,969,756

DEFERRED INFLOWS OF

RESOURCES
OPEB Related 21,941 29,025 7,749 2,274 - 60,989
Lease Related - - - - 17,738 17,738
Total Deferred Inflows of
Resources 21,941 29,025 7,749 2,274 17,738 78,727

NET POSITION
Net Investment in Capital Assets 504,810 1,055,254 - 2,183,689 - 3,743,753 Unrestricted 200,653 2,149,990 1,904,731 562,211 702,447 5,520,032 Total Net Position $ 705,463 $ 3,205,244 $ 1,904,731 $ 562,211 $ 2,886,136 $ 9,263,785

CITY OF COVINA

COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION

INTERNAL SERVICES FUNDS
YEAR ENDED JUNE 30, 2025
(143)
Management
Information Central Workers’ General Building
Systems Equipment Compensation Liability Maintenance Total

OPERATING REVENUES
Charges for Services 1,864,507 $ 1,468,125 $ 1,313,575 $ 2,224,525 $ 1,514,257 $ 8,384,989 $ Motor Pool Charges - 616,606 - - - 616,606
Total Operating Revenues 1,864,507 2,084,731 1,313,575 2,224,525 1,514,257 9,001,595

OPERATING EXPENSES
General and Administrative 1,866,188 339,562 1,980,804 2,499,018 1,414,788 8,100,360 Vehicle and Equipment Operation - 1,129,697 - - - 1,129,697 Depreciation 133,557 313,995 - - 68,774 516,326
Total Operating Expenses 1,999,745 1,783,254 1,980,804 2,499,018 1,483,562 9,746,383 OPERATING INCOME (LOSS) 301,477 (135,238) (667,229) 30,695 (274,493) (744,788)

NONOPERATING REVENUES
(EXPENSES)
Interest Expense (20,420) (16,481) (7,057) - (4,165) (48,123) Interest Income - - - - 523 523
Total Nonoperating
Revenues (Expenses) (20,420) (16,481) (7,057) 523 (4,165) (47,600)

INCOME (LOSS) BEFORE
TRANSFERS 284,996 (155,658) (674,286) 31,218 (278,658) (792,388)

TRANSFERS
Transfers In - - - 800,000 546,142 1,346,142
CHANGES IN NET POSITION 284,996 (155,658) 521,342 (674,286) 577,360 553,754 Fund Balances - Beginning of Year,
as Previously Reported 848,024 2,916,649 2,576,049 35,341 2,299,686 8,675,749 Correction of Error 3,599 13,097 2,968 5,528 9,090 34,282 Fund Balances - Beginning of Year,
as Restated 861,121 2,920,248 2,579,017 40,869 2,308,776 8,710,031

TOTAL NET POSITION -
END OF YEAR $ 3,205,244 705,463 $ 1,904,731 $ 562,211 $ 2,886,136 $ 9,263,785 $

CITY OF COVINA

COMBINING STATEMENT OF CASH FLOWS

INTERNAL SERVICES FUNDS
YEAR ENDED JUNE 30, 2025
(144)
Management
Information Central Workers’ General Building
Systems Equipment Compensation Liability Maintenance Total

CASH FLOWS FROM OPERATING

ACTIVITIES
Receipts from User Departments 1,864,507 $ 2,050,160 $ 1,313,915 $ 2,277,381 $ 1,514,257 $ 9,020,220 $ Payments to Suppliers of Goods or
Services (1,222,633) (1,301,050) (1,402,549) (2,490,462) (1,053,497) (7,470,191) Payments to Employees (595,474) (115,605) (184,218) (116,182) (492,347) (1,503,826) Net Cash Provided (Used) by
Operating Activities 46,400 633,505 (272,852) (329,263) (31,587) 46,203

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Cash Received from Other Funds - - - 800,000 546,142 1,346,142

CASH FLOWS FROM CAPITAL AND

RELATED FINANCING ACTIVITIES
Interest Paid on Pension Bonds (20,555) (16,636) (7,103) (4,193) - (48,487) Principal Paid on Pension Bonds (43,735) (33,947) (15,115) (8,920) - (101,717) Principal Paid on Lease - (38,935) - - - (38,935)
Acquisition of Capital Assets (281,772) (422,752) - - (902,446) (1,606,970) Net Cash Used by Capital and
Related Financing Activities (346,062) (512,270) (22,218) (13,113) (902,446) (1,796,109)

NET INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS (299,662) 121,235 (295,070) 457,624 (387,891) (403,764) Cash and Cash Equivalents - Beginning of Year 1,913,621 2,943,540 7,612,015 4,282,950 1,450,985 18,203,111

CASH AND CASH EQUIVALENTS -
END OF YEAR $ 1,613,959 $ 3,064,775 $ 7,316,945 $ 4,740,574 $ 1,063,094 $ 17,799,347

CITY OF COVINA

COMBINING STATEMENT OF CASH FLOWS (CONTINUED)

INTERNAL SERVICES FUNDS
YEAR ENDED JUNE 30, 2025
(145)
Management
Information Central Workers’ General Building
Systems Equipment Compensation Liability Maintenance Total

RECONCILIATION OF OPERATING

INCOME (LOSS) TO NET CASH

PROVIDED (USED) BY OPERATING

ACTIVITIES
Operating Income (Loss) $ 301,477 (135,238) $ $ (667,229) $ 30,695 (274,493) $ $ (744,788) Adjustments to Reconcile Operating Income
(Loss) to Net Cash Provided (Used) by
Operating Activities:

Depreciation and Amortization 133,557 313,995 - - 68,774 516,326 (Increase) Decrease in Operating Assets
and Deferred Outflows of Resources:

Accounts Receivable - 340 (35,006) 52,856 - 18,190
Lease Receivable - - - - (21,654) (21,654)
Due from Other Governments - 435 - - - 435
Prepaids Items and Deposits - (19,570) - - (583) (20,153) Inventory - - (5,560) - - (5,560)
Deferred Outflows of Resources -
OPEB Related 35,921 11,448 9,978 12,708 - 70,055
Deferred Outflows of Resources -
Pension Related 98,443 21,174 15,466 50,691 66,120 251,894 Increase (Decrease) in Operating
Liabilities and Deferred Inflows
of Resources:

Accounts Payable and
Accrued Liabilities 23,692 (992) 188,694 (3,767) 34,866 (172,761) Compensated Absences Payable (11,800) 5,598 (1,366) 1,613 (713) (6,668) Net OPEB Liability 714 4,044 454 2,325 9,090 16,627
Net Pension Liability 4,756 (50,892) 10,288 (50,617) (28,293) (114,758) Claims Payable - - 357,984 - (310,538) 47,446
Deferred Inflows of Resources -
Lease Related - - - - 17,738 17,738
Deferred Inflows of Resources -
OPEB Related (7,073) (2,254) (1,964) - (2,502) (13,793) Total Adjustments 181,638 332,028 394,377 (54,770) 790,991 (62,282) Net Cash Provided (Used) by
Operating Activities 46,400 $ 633,505 $ (272,852) $ (329,263) $ (31,587) $ 46,203 $

CITY OF COVINA

CUSTODIAL FUNDS
JUNE 30, 2025
(146)
Custodial funds are used to account for assets held by the City as trustee or agent for individuals, private organizations, or other governmental units or funds.

Downtown District Fund – accounts for funds collected and disbursed by the City on behalf of the Downtown District Association members.

Prospero Park District Fund – accounts for funds collected and disbursed by the City on behalf of the Prospero Park District Association members.

CITY OF COVINA

COMBINING STATEMENT OF FIDUCIARY NET POSITION

CUSTODIAL FUNDS
JUNE 30, 2025
(147)
Total
Downtown Prospero Custodial
District Park District Funds
ASSETS
Cash and Investments 750 $ 125 $ 875 $
Accounts Receivable 743 362 1,105
Total Assets 1,493 487 1,980

LIABILITIES
Due to Property Owners 1,493 487 1,980
NET POSITION $ - - $ - $

CITY OF COVINA

COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

CUSTODIAL FUNDS
JUNE 30, 2025
(148)
Totals
Downtown Prospero Custodial
District Park District Funds

ADDITIONS
Business Licenses Collected from Property
Owners 8,744 $ 263 $ $ 9,007

DEDUCTIONS
Distributions to Property Owners 8,744 263 9,007

CHANGES IN NET POSITION - - -
Net Position - Beginning of the Year - - -
NET POSITION - END OF YEAR $ - $ - $ -

STATISTICAL SECTION

THIS PAGE INTENTIONALLY LEFT BLANK

CITY OF COVINA

STATISTICAL SECTION
(151)
This part of the City of Covina’s comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City’s overall financial health.

FINANCIAL TRENDS
These schedules contain trend information to help the
reader understand how the City’s financial
performance and well-being have changed over time. 153

REVENUE CAPACITY
These schedules contain information to help the
reader assess the City’s significant local revenue
source, the property tax. 160

DEBT CAPACITY
These schedules contain information to help the
reader assess the affordability of the City’s current
levels of outstanding debt and the ability to issue
additional debt in the future. 166

DEMOGRAPHIC AND ECONOMIC INFORMATION
These schedules offer demographic and economic
indicators to help the reader understand the
environment within which the City’s financial activities take place. 172

OPERATING INFORMATION
These schedules contain service and infrastructure
data to help the reader understand how the information
in the City’s financial report relates to the services the City provides and the activities it performs. 173

DEBT CONTINUING DISCLOSURE
These schedules contain information that complies
with continuing disclosure requirements of each
bond issued. 178

THIS PAGE INTENTIONALLY LEFT BLANK

CITY OF COVINA

NET POSITION BY COMPONENT

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(153)
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Governmental activities
Net investment in capital assets $ 70,757,663 $ 74,371,948 $ 74,766,840 $ 84,857,338 $ 84,273,491 $ 81,877,731 $ 83,025,178 $ 86,804,262 $ 90,168,855 $ 105,096,553Restricted 19,641,871 26,984,607 25,867,749 17,053,339 14,469,628 15,410,155 16,074,243 25,072,625 31,407,858 43,473,815 Unrestricted (35,598,486) (39,202,847) (43,430,116) (46,481,365) (44,202,396) (37,601,064) (30,538,742) (35,785,873) (32,082,117) (34,784,865) Total governmental activities net position $ 54,801,048 $ 62,153,708 $ 57,204,473 $ 55,429,312 $ 54,540,723 $ 59,686,822 $ 68,560,679 $ 76,091,014 $ 89,494,596 $ 113,785,503 Business-type activitiesNet investment in capital assets $ 13,901,014 $ 14,333,903 $ 17,635,065 $ 18,856,666 $ 26,398,843 $ 32,790,931 $ 31,942,562 $ 35,390,399 $ 43,484,788 $ 47,748,805Restricted - 4,353,289 5,613,256 7,122,938 - - - - - - Unrestricted 24,142,448 24,413,236 20,585,317 18,672,662 17,719,110 14,407,201 15,308,140 14,148,677 10,890,907 8,099,670 Total business-type activities net position $ 38,043,462 $ 43,100,428 $ 43,833,638 $ 44,652,266 $ 44,117,953 $ 47,198,132 $ 47,250,702 $ 49,539,076 $ 54,375,695 $ 55,848,475 Total net positionNet investment in capital assets $ 84,658,677 $ 88,705,851 $ 92,401,905 $ 103,714,004 $ 110,672,334 $ 114,668,662 $ 114,967,740 $ 122,194,661 $ 133,653,643 $ 152,845,358 Restricted 19,641,871 31,337,896 31,481,005 24,176,277 14,469,628 15,410,155 16,074,243 25,072,625 31,407,858 43,473,815 Unrestricted (11,456,038) (14,789,611) (22,844,799) (27,808,703) (26,483,286) (23,193,863) (15,230,602) (21,637,196) (21,191,210) (26,685,195) Total net position $ 92,844,510 $ 105,254,136 $ 101,038,111 $ 100,081,578 $ 98,658,676 $ 106,884,954 $ 115,811,381 $ 125,630,090 $ 143,870,291 $ 169,633,978

CITY OF COVINA, CALIFORNIA

CHANGES IN NET POSITION

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(154)
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Expenses
Governmental activities: General government $ 4,618,977 $ 5,786,202 $ 1,370,482 $ 2,082,578 $ 3,356,218 $ 3,131,410 $ 882,985 $ 3,792,606 $ 3,607,340 $ 3,264,852 Public safety 25,297,988 26,080,895 30,549,274 29,863,536 33,529,788 34,239,989 45,084,190 49,481,727 38,426,544 38,200,980 Public works 6,934,750 6,548,405 6,792,606 7,468,025 8,539,877 8,476,656 6,580,415 5,227,281 12,272,245 4,560,337 Culture and recreation 3,552,984 3,451,383 5,027,721 4,434,960 4,630,583 4,393,945 1,600,700 5,974,501 6,428,184 6,220,553 Community development 1,553,499 1,135,194 2,246,788 1,738,982 2,382,311 2,481,925 2,333,315 3,582,145 4,229,689 9,217,288 Transit 1,017,689 1,260,117 1,212,960 1,176,235 2,068,390 2,646,439 862,651 1,399,960 1,595,151 1,653,967 Redevelopment and housing 217,808 349,820 1,042,797 492,737 598,363 912,707 183,561 786,051 728,375 466,564 Interest on long-term debt - - - 287,459 251,550 238,058 708,305 1,336,291 1,315,414 1,291,391 Total governmental activities expenses 43,193,695 44,612,016 48,242,628 47,544,512 55,357,080 56,521,129 58,236,122 71,580,562 68,602,942 64,875,932 Business-type activities:

Water utility 8,369,874 8,056,727 12,815,344 10,289,222 10,318,472 10,893,841 10,333,944 11,001,848 12,037,535 12,901,969 Environmental protection 940,492 867,142 1,109,212 1,195,439 1,176,992 1,047,347 1,341,932 1,455,858 1,432,770 1,435,210 Sewer utility 1,575,182 1,429,207 1,757,186 2,444,970 2,829,014 2,485,405 2,063,288 2,301,782 530,467 557,360 Theater - - - - - - - 493,523 2,454,092 3,058,559
Total business-type activities expenses 10,885,548 10,353,076 15,681,742 13,929,631 14,324,478 14,426,593 13,739,164 15,253,011 16,454,864 17,953,098 Total expenses $ 54,079,243 $ 54,965,092 $ 63,924,370 $ 61,474,143 $ 69,681,558 $ 70,947,722 $ 71,975,286 $ 86,833,573 $ 85,057,806 $ 82,829,030 Program revenuesGovernmental activities: Charges for services:

General government $ 338,362 $ 290,160 $ 2,232,037 $ 2,192,160 $ 2,162,262 2,361,216 2,602,937 2,328,058 2,166,584 2,538,802 Public safety 1,490,083 1,443,134 1,769,892 1,727,746 1,521,571 1,655,557 2,049,262 2,283,281 2,307,522 1,937,926 Public works 623,693 796,475 733,029 802,080 684,035 754,691 970,378 1,108,388 882,087 1,375,688 Culture and recreation 794,192 793,114 785,814 834,854 507,771 306,697 687,296 734,037 774,565 703,211 Community development 1,138,415 1,266,266 1,968,358 1,771,843 1,349,738 1,845,242 2,045,672 2,063,716 2,233,865 1,846,092 Transit 315,887 242,912 214,650 226,255 180,644 107,574 126,513 144,349 143,607 222,101 Redevelopment and housing 320,620 302,665 263,574 228,506 881,603 1,124,210 241,182 289,574 326,479 483,881 Operating grants and contributions 5,216,063 10,563,152 7,540,661 7,962,987 8,081,089 9,809,684 13,635,757 22,818,540 20,963,432 19,702,447 Capital grants and contributions 2,428,605 8,209,341 2,579,102 4,308,857 245,420 1,087,845 567,243 2,206,174 1,697,052 6,394,822 Total governmental activities program revenues 12,665,920 23,907,219 18,087,117 20,055,288 15,614,133 19,052,716 22,926,240 33,976,117 31,495,193 35,204,970 (Continued)

CITY OF COVINA, CALIFORNIA

CHANGES IN NET POSITION (CONTINUED)

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(155)
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Business-type activities:

Charges for services:

Water utility $ 10,436,434 $ 11,011,015 $ 11,138,975 $ 9,586,220 $ 10,673,985 $ 11,681,271 $ 11,859,488 $ 11,469,148 $ 12,523,664 $ 13,491,391 Environmental protection 1,159,700 1,313,194 1,170,122 1,190,124 1,003,527 1,144,576 1,142,051 1,229,521 1,128,094 1,154,155 Theater - - - - - - - 33,198 191,693 123,200 Sewer utility 2,683,503 2,760,749 2,833,092 2,923,535 2,905,488 3,093,941 3,305,418 3,043,013 2,696,029 3,031,442 Operating grants and contributions - - - - - - - 1,154 31,572 - Capital grants and contributions - - - - - - - 2,999,768 - - Total business-type activities program revenues 14,279,637 15,084,958 15,142,189 13,699,879 14,583,000 15,919,788 16,306,957 15,776,034 19,570,820 17,800,188 Total program revenues $ 26,945,557 $ 38,992,177 $ 33,229,306 $ 33,755,167 $ 30,197,133 $ 34,972,504 $ 39,233,197 $ 49,752,151 $ 51,066,013 $ 53,005,158 Net (expense) revenueGovernmental activities $ (30,527,775) $ (20,704,797) $ (30,155,511) $ (27,489,224) $ (39,742,947) $ (37,468,413) $ (35,309,882) $ (37,604,445) $ (37,107,749) $ (29,670,962) Business-type activities 3,394,089 4,731,882 (539,553) (229,752) 258,522 1,493,195 2,859,617 523,023 3,115,956 (152,910) Total net expense $ (27,133,686) $ (15,972,915) $ (30,695,064) $ (27,718,976) $ (39,484,425) $ (35,975,218) $ (32,450,265) $ (37,081,422) $ (33,991,793) $ (29,823,872) General revenues Governmental activities: Property taxes $ 12,564,219 $ 11,642,704 $ 12,575,318 $ 13,123,606 $ 13,812,070 $ 14,862,914 $ 15,338,132 $ 16,429,930 $ 17,707,380 $ 19,629,507 Sales taxes 7,929,069 9,164,440 8,950,753 9,315,358 9,296,400 10,793,459 11,426,354 11,493,906 10,701,878 11,342,980 Transaction and use tax - - - 1,438,519 6,579,486 8,098,540 8,823,059 8,787,686 8,535,570 8,693,965 Transient occupancy taxes 482,727 327,570 388,491 240,946 130,831 3,661 95,950 193,649 252,508 157,193 Property transfer taxes 223,766 200,253 236,899 217,332 212,485 216,776 278,481 214,879 194,695 251,463 Business license taxes 328,716 337,626 348,793 372,756 347,110 357,655 363,496 431,423 404,183 423,249 Utility user taxes 4,632,448 4,689,894 4,573,428 4,590,983 4,523,187 4,847,226 5,082,103 6,041,869 6,024,393 6,315,245 Franchise taxes 1,447,780 1,449,399 1,594,522 1,625,802 1,910,641 2,219,586 2,246,113 2,393,981 2,452,804 2,489,668 Investment earnings 193,209 226,671 144,176 883,542 620,835 (257,680) (1,162,614) 712,611 4,149,726 4,195,491 Transfers in/out - 18,900 - - - 22,340 1,020,279 (1,820,000) (15,594) 103,591 Gain on sale of capital assets 32,551 - - 15,129 54,268 - 462,215 - - - Miscellaneous - - - 12,562 49,645 455,723 210,171 254,846 103,788 86,403 Extraordinary loss - - - - - - - - - - Total governmental activities 27,834,485 28,057,457 28,812,380 31,836,535 37,536,958 41,620,200 44,183,739 45,134,780 50,511,331 53,688,755 Business-type activities: Investment earnings 111,555 206,823 366,249 594,051 524,565 236,885 139,389 (129,871) 1,611,110 1,543,231 Investment earnings - CIC 21,524 137,161 906,514 454,329 - 1,372,439 (1,926,157) - - - Miscellaneous - - - - - - - 75,222 93,959 88,134
Transfers in/out - (18,900) - - - (22,340) (1,020,279) 1,820,000 15,594 (103,591) Total general revenues $ 27,967,564 $ 28,382,541 $ 30,085,143 $ 32,884,915 $ 38,061,523 $ 43,207,184 $ 41,376,692 $ 46,900,131 $ 52,231,994 $ 55,216,529 (Continued)

CITY OF COVINA, CALIFORNIA

CHANGES IN NET POSITION (CONTINUED)

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(156)
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Change in net position
Governmental activities $ (2,693,290) $ 7,352,660 $ (1,343,131) $ 4,347,311 $ (2,205,989) $ 4,151,787 $ 8,873,857 $ 7,530,335 $ 13,403,582 $ 24,017,793 Business-type activities 3,527,168 5,056,966 733,210 818,628 783,087 3,080,179 52,570 2,288,374 4,836,619 1,374,864 Total changes in net position $ 833,878 $ 12,409,626 $ (609,921) $ 5,165,939 $ (1,422,902) $ 7,231,966 $ 8,926,427 $ 9,818,709 $ 18,240,201 $ 25,392,657

CITY OF COVINA, CALIFORNIA

FUND BALANCES OF GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(157)
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
General fund
ReservedUnreservedNonspendable $ 753,534 $ 3,247,152 $ 3,116,097 $ 2,620,620 $ 2,621,554 $ 1,008,903 $ 82,179 $ 99,526 $ 92,959 $ 214,729 Restricted 347,012 395,420 448,927 385,692 428,079 387,764 20,136,982 10,422,833 15,878,181 12,532,800 Committed 6,483,613 2,656,872 3,708,388 6,981,901 8,029,233 8,508,328 385,762 362,653 332,545 321,667 Assigned 442,472 - 1,561,848 42,726 25,940 17,166 7,268 1,091 1,049 2,520 Unassigned (675,402) - - 3,167,653 - 10,878,058 6,786,935 22,431,703 22,984,173 23,064,662 Total general fund $ 6,908,757 $ 6,741,916 $ 8,835,260 $ 10,030,939 $ 14,272,459 $ 20,800,219 $ 27,399,126 $ 33,317,806 $ 39,288,907 $ 36,136,378 All other governmental fundsReservedUnreserved, reported in: Special revenue funds Capital projects fundsNonspendable $ - $ - $ - $ 5,631 $ 1,159 $ 22,553 $ 7,949 $ 8,445 $ 828 $ 9,684 Restricted 10,265,504 18,465,625 24,623,938 20,506,425 17,912,873 14,909,282 15,232,311 23,840,470 30,115,767 39,136,627 Assigned 877,646 1,270,910 491,368 111,473 - 100,116 - - - - Unassigned (46,555) (27,396) (53,943) (1,685,799) (832,212) (332,512) (463,734) (657,818) (594,730) (3,507,474) Total all other governmental funds 11,096,595 $ $ 19,709,139 $ 25,061,363 $ 18,937,730 $ 17,081,820 $ 14,699,439 $ 14,776,526 $ 23,191,097 $ 29,521,865 $ 35,638,837

CITY OF COVINA, CALIFORNIA

CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(158)
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Revenues
Taxes $ 27,608,725 $ 27,811,886 $ 28,668,204 $ 30,925,091 $ 36,812,970 $ 41,399,927 $ 43,653,728 $ 45,977,006 $ 46,273,416 $ 49,303,320 Licenses and permits 888,120 1,128,331 1,698,138 1,307,877 999,449 1,603,293 1,442,013 1,565,187 1,866,645 1,535,642 Intergovernmental 7,850,431 12,122,236 7,968,101 9,388,149 8,487,182 10,166,315 13,200,093 24,537,803 22,783,632 22,657,397 Charges for services 2,746,174 2,484,969 4,713,987 5,000,622 4,011,688 4,196,257 5,492,740 5,050,901 4,355,944 4,916,945 Fines and forfeits 862,009 930,478 907,304 926,644 907,080 890,254 1,081,458 1,340,191 1,108,302 781,877 Special assessments 524,949 590,948 634,282 533,047 1,414,617 1,469,594 592,885 880,496 853,971 1,110,586 Investment earnings 193,209 226,671 380,716 1,281,892 1,430,498 (59,645) (980,055) 737,184 4,183,700 4,215,580 Miscellaneous 240,998 550,247 723,058 570,700 738,688 825,456 727,918 814,559 594,235 1,223,692 Total revenues 40,914,615 45,845,766 45,693,790 49,934,022 54,802,172 60,491,451 65,210,780 80,903,327 82,019,845 85,745,039 ExpendituresGeneral government 3,928,177 3,476,163 2,235,447 1,790,386 2,593,801 2,561,757 5,382,805 2,599,832 2,820,455 2,957,806 Public safety 23,721,228 23,283,514 26,571,782 28,302,062 29,372,913 32,413,668 73,854,134 36,377,733 35,802,133 39,021,719 Public works 3,109,378 3,762,770 4,753,148 4,091,454 4,474,244 6,962,063 5,833,291 4,138,958 6,524,160 7,484,397 Culture and recreation 3,245,947 3,254,141 3,923,981 4,282,219 3,926,265 3,456,912 7,079,292 4,587,871 5,090,675 5,195,527 Community development 1,543,411 1,202,281 1,890,189 1,852,180 2,247,775 2,277,834 5,432,129 3,229,912 3,657,344 8,983,027 Transit 746,109 957,374 764,864 887,211 1,734,472 2,277,196 951,556 967,643 1,091,975 1,225,853 Redevelopment and housing 265,742 287,877 1,005,353 517,758 567,340 890,178 679,401 719,415 670,497 458,452Capital outlay 5,030,166 1,175,943 2,617,687 15,518,582 6,985,453 4,894,860 5,909,455 6,940,758 8,195,016 12,268,741 Debt service: Principal - 210,000 - 300,000 305,000 310,000 320,000 2,639,742 2,772,629 2,679,893 Interest and fiscal charges - 155,078 - 233,481 252,136 250,944 722,016 1,350,031 1,328,695 1,304,752 Bond issuance costs - - - 45,544 - - - - - -
Total expenditures 41,590,158 37,400,063 44,127,529 57,820,877 52,459,399 56,295,412 106,164,079 63,551,895 67,953,579 81,580,167 Excess of revenues over (under) expenditures (675,543) 8,445,703 1,566,261 (7,886,855) 2,342,773 4,196,039 (40,953,299) 17,351,432 14,066,266 4,164,872 (Continued)

CITY OF COVINA, CALIFORNIA

CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS (CONTINUED)

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(159)
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Other financing sources (uses)Transfers in $ 2,317,808 $ 1,373,629 $ 1,186,303 $ 2,422,806 $ 1,195,374 $ 625,625 $ 613,927 $ 1,531,080 $ 2,459,154 $ 1,817,668 Transfers out (2,317,808) (1,373,629) (1,186,303) (3,861,325) (1,195,374) (676,285) (6,103,294) (4,551,080) (4,375,020) (3,060,219) Capital leases - - - - - 460,000 - - - -
Loan Proceeds - - - - - 12,476 - 1,819 147,478 42,122
Subscription Proceeds - - - - - - - 3,991 - -
Proceeds from debt issuance - 5,625,000 - 2,500,000 - 52,646,184 - - - - Premium on debt issuance - 254,307 - - - - - - - - Payment to refunded bond account - - - - - - - - - - Gain (loss) on sale and disposal of capital assets - - - 42,837 - - - - - - Total other financing
sources (uses - 5,879,307 - 1,061,481 42,837 (50,660) 47,629,293 (3,018,181) (1,764,397) (1,200,429) Net changes in fund balances $ (675,543) $ 8,445,703 $ 7,445,568 $ (6,825,374) $ 2,385,610 $ 4,145,379 $ 6,675,994 $ 14,333,251 $ 12,301,869 $ 2,964,443 Debt service as a percentage of noncapital expenditures 0.0% 0.0% 0.9% 1.4% 1.2% 1.1% 1.0% 7.0% 6.9% 5.7%

CITY OF COVINA, CALIFORNIA

GENERAL GOVERNMENTAL TAX REVENUES BY SOURCE

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(160)
Fiscal Transient Property Business Utility Franchise
Year Property Taxes (1) Sales Taxes Occupancy Taxes Transfer Taxes License Taxes Users Taxes Taxes Total 2016 12,564,219 $ $ 7,929,069 $ 482,727 $ 223,766 $ 328,716 $ 4,632,448 $ 1,447,780 $ 27,608,725 2017 11,642,704 9,164,440 327,570 200,253 337,626 4,689,894 1,449,399 27,811,886 2018 12,575,318 8,950,753 388,491 236,899 348,793 4,573,428 1,594,522 28,668,204 2019 13,123,395 10,753,877 240,946 217,332 372,756 4,590,983 1,625,802 30,925,091 2020 13,812,820 15,875,886 130,831 212,485 347,120 4,523,187 1,910,641 36,812,970 2021 14,862,914 18,891,999 3,661 216,776 357,765 4,847,226 2,219,586 41,399,9272022 15,338,132 20,249,413 95,950 278,481 363,536 5,082,103 2,246,113 43,653,728 2023 16,419,598 20,281,592 193,649 214,879 431,438 6,041,869 2,393,981 45,977,006 2024 17,707,380 19,237,448 252,508 194,695 404,188 6,024,393 2,452,804 46,273,416 2025 19,629,507 20,036,945 157,193 251,463 423,299 6,315,245 2,489,668 49,303,320

CITY OF COVINA, CALIFORNIA

ASSESSED VALUE OF TAXABLE PROPERTY

LAST TEN FISCAL YEARS
(161)
Total
Fiscal Effective
Year Secured Nonunitary Unsecured Total Rate (2)
2016 4,622,530,801 $ $ 401,800 $ 136,586,370 $ 4,759,518,971 1.4548% 2017 4,833,140,987 656,500 129,151,190 4,962,948,677 1.4552% 2018 5,126,757,001 656,500 125,505,161 5,252,918,662 1.4801% 2019 5,368,832,086 53,800 130,846,429 5,499,732,315 1.4645% 2020 5,681,002,424 53,800 132,250,317 5,813,306,541 1.4974% 2021 5,986,855,692 9,148 138,241,671 6,125,106,511 1.4727% 2022 6,237,377,853 9,148 125,747,512 6,363,134,513 1.4892% 2023 6,605,639,837 9,148 144,173,457 6,749,822,442 1.4829% 2024 6,990,178,670 9,148 167,111,691 7,157,299,509 1.4616% 2025 7,382,826,566 6,098 177,571,128 7,560,403,792 1.4650% (1) Net of exemptions
Source: Los Angeles County/Hdl Companies
Assessed Value (1)
(2) Because of California's complicated taxing structure where different values are taxed at different rates due to Proposition 13 and Redevelopment dissolution statutes, we have used an effective rate. The rate has been calculated by dividing total revenue for the government preparing the statistical section by the total revenue base.

CITY OF COVINA, CALIFORNIA

ASSESSED VALUE OF TAXABLE PROPERTY BY USE

LAST TEN FISCAL YEARS
(162)
Total
Fiscal Effective
Year Residential Commercial Industrial Other Total Rate (2) 2016 3,429,044,663 $ 855,846,637 $ 228,745,403 $ 245,882,268 $ 4,759,518,971 $ 1.4548% 2017 3,577,650,675 901,743,008 232,619,329 250,935,665 4,962,948,677 1.4552% 2018 3,790,868,304 923,889,405 237,982,559 300,178,394 5,252,918,662 1.4801% 2019 3,999,408,804 943,988,485 248,088,436 308,246,590 5,499,732,315 1.4645% 2020 4,236,209,336 995,891,012 261,497,564 319,708,629 5,813,306,541 1.4974% 2021 4,477,167,443 1,041,244,830 288,116,648 318,577,590 6,125,106,511 1.4727% 2022 4,685,689,429 1,078,429,108 307,074,332 291,941,644 6,363,134,513 1.4892% 2023 4,989,022,923 1,136,324,463 312,388,220 312,086,836 6,749,822,442 1.4829% 2024 5,300,477,865 1,179,344,141 333,242,948 344,234,555 7,157,299,509 1.4616% 2025 5,624,116,304 1,216,951,629 354,614,177 364,721,682 7,560,403,792 1.4650% (1) Net of exemptions
Source: Los Angeles County/Hdl Companies
Assessed Value (1)
(2) Because of California's complicated taxing structure where different values are taxed at different rates due to Proposition 13 and Redevelopment dissolution statutes, we have used an effective rate. The rate has been calculated by dividing total revenue for the government preparing the statistical section by the total revenue base.

CITY OF COVINA, CALIFORNIA
PROPERTY TAX RATES (1)

DIRECT AND OVERLAPPING GOVERNMENTS

LAST TEN FISCAL YEARS
(163)
Community Vehicle Total
Fiscal Basic Flood School College Water Parking Effective Year Levy (2) General Control Total District (3) District (4) District District Rate (5) 2016 1.0000 0.0000 0.0000 0.0000 0.3258 0.0380 0.0035 0.0875 1.4548 2017 1.0000 0.0000 0.0000 0.0000 0.3162 0.0481 0.0035 0.0875 1.4553 2018 1.0000 0.0000 0.0000 0.0000 0.3431 0.0460 0.0035 0.0875 1.4801 2019 1.0000 0.0000 0.0000 0.0000 0.3267 0.0467 0.0035 0.0875 1.4645 2020 1.0000 0.0000 0.0000 0.0000 0.3368 0.0695 0.0035 0.0875 1.4974 2021 1.0000 0.0000 0.0000 0.0000 0.3156 0.0662 0.0035 0.0875 1.4727 2022 1.0000 0.0000 0.0000 0.0000 0.3038 0.0944 0.0035 0.0875 1.4892 2023 1.0000 0.0000 0.0000 0.0000 0.3041 0.0878 0.0035 0.0875 1.4829 2024 1.0000 0.0000 0.0000 0.0000 0.2886 0.0821 0.0035 0.0875 1.4616 2025 1.0000 0.0000 0.0000 0.0000 0.2841 0.0864 0.0070 0.0875 1.4650 (1) Per $100 of assessed value
Revenue Augmentation Fund ($0.242) and other agencies ($0.082). (3) Azusa Unified School District, Charter Oak Unified School District and Covina Valley Unified School District . (4) Citrus Community College District and Mt. San Antonio Community College District .

Source: Los Angeles County/Hdl Companies .
(5) Because of California's complicated taxing structure where different values are taxed at different rates due to Proposition 13 and Redevelopment dissolution statutes, we have used an effective rate. The rate has been calculated by dividing total revenue for the government preparing the statistical section by the total revenue base.

County
(2) Basic levy for City ($0.154), County ($0.338), Covina Valley Unified School District ($0.184), Educational .

CITY OF COVINA, CALIFORNIA

PRINCIPAL PROPERTY OWNERS)

LAST TEN FISCAL YEARS
(164)
Percentage of Percentage of
Taxable Total Taxable Taxable Total Taxable
Primary Assessed Assessed Assessed Assessed
Taxpayer Use Value Rank Value (1) Value Rank Value (1)
Ikea Property Inc Commercial 89,113,742 $ 1.18% 84,348,126 1 $ 1.18% 1 Vista Pointe Grand Apartments LLC Residential 67,142,550 0.89% 65,874,721 2 0.92% 2 KIR Covina Limited Partnership Commercial 60,506,055 0.80% 59,319,674 3 0.83% 3 Covina Grand Apartments LLC Residential 58,256,440 0.77% 57,102,740 4 0.80% 4 Sierra Health and Life Insurance CompanCommercial 51,312,528 0.68% 50,306,400 5 0.70% 5 UIMC Covina LLC Commercial 41,013,713 0.54% 40,209,527 6 0.56% 6 MV Covina Investor 1 LLC Commercial 40,124,500 0.53% 39,339,100 7 0.55% 7 FNL of Covina Partners LLC Commercial 36,351,601 0.48% 39,339,100 9 0.55% 8 LVGEM Hotel Corporation Commercial - 0.00% 35,638,832 0.50% 9 WLM AH LLC Commercial - 0.00% 31,485,835 10 0.44%
Oakmont of Covina LLC Institutional 38,473,872 0.51% 8 - 0.00% Vanllee Hospitality LLC Commercial 34,526,953 10 0.46% - 0.00% Total $ 516,821,954 6.84% 502,964,055 $ 7.03%
(1) Total assessed valuation of taxable property exclusive of exemptions.

Source: Los Angeles County/Hdl Companies
2025 2024
Principal Property Owners

CITY OF COVINA, CALIFORNIA
PROPERTY TAX LEVIES AND COLLECTIONS (1)

LAST TEN FISCAL YEARS
(165)
Percent of
Percent of Total Tax
Fiscal Total Tax Current Tax Current Taxes Delinquent Tax Total Tax Collections to Year Levy (2) Collections Collected Collections Collections Total Tax Levy 2016 5,553,269 $ 5,809,940 $ 104.6% (9,333) $ 5,800,607 $ 104.5% 2017 5,815,150 5,996,355 103.1% 11,769 6,008,124 103.3% 2018 6,154,437 6,485,903 105.4% 98,063 6,583,966 107.0% 2019 6,483,113 6,548,523 101.0% 87,221 6,635,744 102.4% 2020 6,795,929 6,868,907 101.1% 70,619 6,939,526 102.1% 2021 7,277,691 7,335,258 100.8% 125,446 7,460,704 102.5% 2022 7,609,654 7,827,091 102.9% 125,398 7,952,489 104.5% 2023 8,111,743 8,311,716 102.5% 122,754 8,434,470 104.0% 2024 8,671,894 8,850,281 102.1% 101,758 8,952,039 103.2% 2025 9,129,657 9,196,408 100.7% 136,076 9,332,484 102.2% (1) Includes only City general property taxes of the General Fund and Municipal Parking District Special Revenue Fund (2) Includes secured and unsecured property tax levies exclusive of homeowner exemption, supplemental roll and in-lieu motor vehicle licenses.

Source: Los Angeles County.

CITY OF COVINA, CALIFORNIA

RATIOS OF OUTSTANDING DEBT BY TYPE

LAST TEN FISCAL YEARS
(166)
Percentage of Percentage of
Fiscal Certificates of Revenue Section 108 Pension Obligation Installment Revenue Pension Obligation Personal Debt Year Participation Bonds Notes Leases Loan Bonds Agreement Bonds Leases Bonds Total Income (1) Per Capita (1) 2016 $ - $ - $ - $ - -$ $ - $ - $ 26,466,734 $ 3,482,249 $ - $ 29,948,983 4.14% 0.16% 2017 - - - - - - 25,483,722 - 3,186,043 - 28,669,765 4.38% 0.17%2018 5,657,747 - 496,571 - - - 24,465,710 - 2,875,237 - 33,495,265 3.77% 0.15%2019 5,471,187 - 496,571 - 2,375,000 - 23,407,697 - 2,549,111 - 34,299,566 3.88% 0.14%2020 5,279,627 - 244,087 - 2,250,000 - 21,443,255 - 2,206,909 - 31,423,878 4.36% 0.16%2021 5,083,068 - - 2,125,000 - - 18,290,271 8,210,000 - 33,708,339 - 4.23% 0.14%2022 4,876,509 - 227,389 - 2,000,000 54,939,654 17,132,316 7,370,000 13,934 7,855,346 94,415,148 1.58% 0.05%2023 4,659,950 305,403 - 153,335 1,875,000 52,529,291 15,991,560 6,515,000 10,531 7,510,709 89,550,779 1.92% 0.06%2024 4,433,391 129,180 - 203,417 1,750,000 50,101,430 14,828,172 5,645,000 7,076 7,163,570 84,261,236 2.24% 0.06% 2025 4,201,832 1,330 - 160,561 1,625,000 47,664,820 13,642,755 4,760,000 3,565 6,815,180 78,875,043 2.47% 0.06% Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. (1) See Demographic and Economic Statistics on page 172.(2) Due to the dissolution of the Covina Redevelopment Agency, the debt related to tax allocation bonds is no longer reported in this table.

Outstanding Debt by Type-Last Ten Fiscal Years
Governmental Activities Business-Type Activities

CITY OF COVINA, CALIFORNIA

RATIOS OF NET GENERAL BONDED DEBT OUTSTANDING

LAST TEN FISCAL YEARS
(167)
Percentage of
Taxable
Less Amounts Assessed
Fiscal Pension Obligation Available in Debt Valuation (1) Year Bonds Service Fund Total of Property Per Capita (2) 2016 $ - $ - $ - 0.00% 0.00%
2017 - - - 0.00% 0.00%
2018 - - - 0.00% 0.00%
2019 - - - 0.00% 0.00%
2020 - - - 0.00% 0.00%
2021 - - - 0.00% 0.00%
2022 54,939,654 6,786,935 48,152,719 0.76% 0.00%
2023 52,529,291 22,431,703 30,097,588 0.45% 0.17%
2024 50,101,430 22,984,173 27,117,257 0.38% 0.19%
2025 47,664,820 23,064,662 24,600,158 0.33% 0.21%
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. (1) See Assessed Value of Taxable Property-Last Ten Fiscal Years on page 161. (2) See Demographic and Economic Statistics on page 172.

CITY OF COVINA, CALIFORNIA

DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES BONDED DEBT AS OF JUNE 30, 2025
(168)
Net General
Activities Bonded Percentage Amount
and Capital Lease Applicable to Applicable to
Jurisdiction Debt Outstanding City of Covina(2) City of Covina Direct-City of Covina (1) $ 47,826,710 100.000% 47,826,710 $ Overlapping:

Water District:

Metropolitan Water District 17,155,000 0.186% 31,908
College:

Citrus Community College District 201,035,302 0.349% 701,613 Mt. San Antonio Community College District Certificates 1,062,368,464 6.088% 64,676,992 School District:

Azusa Unified School District 123,238,546 1.399% 1,724,107 Azusa Unified School District General Fund Obligations 3,872,000 1.399% 54,169 Charter Oak Unified School District 55,010,000 38.013% 20,910,951 Charter Oak Unified School District Certificates of
Participation 395,000 38.013% 150,151
Covina-Valley Unified School District 168,834,084 42.552% 71,842,279 Los Angeles County:

Los Angeles County General Fund Obligations 3,036,637,390 0.360% 10,931,895 Los Angeles County Superintendent of Schools
Certificates of Participation 2,331,775 0.360% 8,394
Subtotal overlapping debt 171,032,459
Total direct and overlapping debt $ 218,859,169
Amount Applicable to City of Covina
Source: Los Angeles County/Hdl Companies
(1) Includes governmental activities debt reported in the Ratios of Outstanding Debt by Type on page 166. (2) The percentage of overlapping debt applicable is estimated by using taxable assessed values. Applicable percentages were estimated by determining the portion of another governmental unit's taxable assessed value that is within the city's boundaries and dividing it by each unit's total taxable assessed value.

CITY OF COVINA, CALIFORNIA

LEGAL DEBT MARGIN INFORMATION

LAST TEN FISCAL YEARS
(169)
Total Debt Limitation- Total Debt
Fiscal Assessed Add Assessed 15% of Total Applicable Legal Year Value Exemptions Value Assessed Value to Limitation Debt Margin 2016 4,759,518,971 $ $ 183,697,385 $ 4,943,216,356 $ 741,482,453 $ - $ 741,482,453 2017 4,962,948,677 196,055,673 5,159,004,350 773,850,653 - 773,850,653 2018 5,252,918,662 91,194,219 5,344,112,881 801,616,932 - 801,616,932 2019 5,499,732,315 184,378,433 5,684,110,748 852,616,612 - 852,616,612 2020 5,813,838,744 149,727,735 5,963,566,479 894,534,972 - 894,534,972 2021 6,125,106,511 231,099,414 6,356,205,925 953,430,889 - 953,430,889 2022 6,363,134,513 200,232,342 6,563,366,855 984,505,028 - 984,505,028 2023 6,749,822,442 254,387,103 7,004,209,545 1,050,631,432 - 1,050,631,432 2024 7,157,299,509 244,197,326 7,401,496,835 1,110,224,525 - 1,110,224,525 2025 7,560,403,792 304,658,469 7,865,062,261 1,179,759,339 - 1,179,759,339 Assessed Valuations Legal Debt Margin

CITY OF COVINA, CALIFORNIA

PLEDGED-REVENUE BOND COVERAGE

WATER UTILITY FUND INSTALLMENT AGREEMENT AND REVENUE BONDS

LAST TEN FISCAL YEARS
(170)
Net Revenue
Fiscal Gross Operating Available for
Year Revenues (1) Expenses (2) Debt Service Principal Interest Total Coverage 2016 10,506,025 $ 6,394,614 $ 4,111,411 $ 280,000 $ 710,113 $ 990,113 $ 4.15 2017 11,148,725 7,238,966 3,909,759 290,000 698,713 988,713 3.95 2018 11,350,497 8,484,444 2,866,053 300,000 685,413 985,413 2.91 2019 9,876,708 8,319,258 1,557,450 315,000 671,613 986,613 1.58 2020 10,889,143 8,141,622 2,747,521 330,000 658,713 988,713 2.78 2021 11,805,889 8,774,975 3,030,914 933,307 569,062 1,502,369 2.02 2022 11,902,839 8,335,858 3,566,981 1,157,955 354,474 1,512,429 2.36 2023 11,659,206 8,990,972 2,668,234 1,140,756 331,945 1,472,701 1.81 2024 12,847,080 9,992,260 2,854,820 1,163,388 309,359 1,472,747 1.94 2025 13,785,894 10,805,945 2,979,949 1,185,418 286,330 1,471,748 2.02 (1) Total revenues (including investment earnings) excluding joint venture investment income and gain on sale of capital assets.
(2) Total operating expenses exclusive of depreciation.

Debt Service Requirements

CITY OF COVINA, CALIFORNIA

PLEDGED-REVENUE BOND COVERAGE

SEWER FUND REVENUE BONDS

LAST TEN FISCAL YEARS
(171)
Net Revenue
Fiscal Gross Operating Available for
Year Revenues (1) Expenses (2) Debt Service Principal Interest Total Coverage 2016 2,720,240 $ 785,109 $ 1,935,131 $ 675,000 $ 619,781 $ 1,294,781 $ 1.49 2017 2,818,015 661,138 2,156,877 695,000 598,363 1,293,363 1.67 2018 2,967,675 1,013,663 1,954,012 720,000 574,469 1,294,469 1.51 2019 3,193,723 1,721,983 1,471,740 745,000 547,900 1,292,900 1.14 2020 3,166,964 2,367,418 799,546 895,000 397,205 1,292,205 0.62 2021 3,186,247 1,848,785 1,337,462 825,000 202,631 1,027,631 1.30 2022 3,325,666 1,529,927 1,795,739 840,000 186,054 1,026,054 1.75 2023 3,002,790 1,731,926 1,270,864 855,000 168,768 1,023,768 1.24 2024 3,232,774 1,852,922 1,379,852 870,000 150,861 1,020,861 1.35 2025 3,257,493 2,466,612 790,881 885,000 132,088 1,017,088 0.78 (1) Total revenues (including investment earnings) excluding gain on sale of capital assets. (2) Total operating expenses exclusive of depreciation.

Debt Service Requirements

CITY OF COVINA, CALIFORNIA

DEMOGRAPHIC AND ECONOMIC STATISTICS
(172)
K-12 School
Year Population (1) Enrollment (2)
2016 49,291 16,860
2017 49,011 16,806
2018 49,006 16,627
2019 48,876 16,294
2020 48,846 16,200
2021 48,833 15,854
2022 50,449 15,453
2023 50,350 15,413
2024 50,485 15,391
2025 51,090 15,369
Personal Per Capita
Income(3) Personal
Year ($ Thousand) Income(3)
2016 1,240,869 $ 25,174 $
2017 1,256,462 25,636
2018 1,262,424 25,760
2019 1,330,564 27,223
2020 1,368,680 28,020
2021 1,426,212 29,205
2022 1,488,896 29,512
2023 1,717,049 34,102
2024 1,888,379 37,404
2025 1,947,550 38,119
Unemployment
Year Rate (4)
2016 8.0%
2017 6.3%
2018 5.1%
2019 4.9%
2020 4.7%
2021 13.3%
2022 9.5%
2023 5.1%
2024 5.1%
2025 5.4%

(1) State Department of Finance.
(2) State Department of Education-Covina Valley and Charter Oak Unified School Districts. (3) HdL, Coren & Cone.
(4) State Employment Development Department.

Last Ten Fiscal Years
Last Ten Fiscal Years
Last Ten Fiscal Years

CITY OF COVINA, CALIFORNIA

PRINCIPAL EMPLOYERS
AS OF JUNE 30, 2025
(173)
Employer Employees Rank
Percentage of
Total City
Employment Employees Rank
Percentage of
Total City
Employment
Covina Valley Unified School District 1,472 1 9.54% 1,537 1 9.93% Emanate Health Intercommunity Hospital 971 2 6.29% 1,007 2 6.51% Charter Oak Unified School District 654 3 4.24% 650 3 4.20% Alora Behavioral Health 365 4 2.37% 277 4 1.79%
Ikea U.S. West, Inc. 313 5 2.03% 313 7 2.02%
Wal-Mart 302 6 1.96% 210 6 1.36%
City of Covina 257 7 1.67% 249 5 1.61%
The Home Depot 192 8 1.24% 190 8 1.23%
Bert's Mega Mall 139 9 0.90% 161 9 1.04%
Composites Horizons LLC 131 10 0.85% - 0.00%
Med Plus Pharmacy - 0.00% 150 10 0.97%
Total 4,796 31.09% 4,744 30.66%
Source: City of Covina Finance Department, Covina Valley and Charter Oak School Districts and Citrus Valley Medical Center 2025 2024

CITY OF COVINA, CALIFORNIA

FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION

LAST TEN FISCAL YEARS
(174)
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
General government 20.56 28.00 25.50 26.50 27.00 29.50 29.50 30.00 30.00 30.50 Public safety 100.50 112.00 99.50 98.50 98.50 95.50 96.50 98.00 97.00 100.50 Public works 19.50 25.00 21.80 21.80 22.80 23.80 23.80 24.00 28.00 28.50 Culture and recreation 43.41 30.94 21.95 22.47 29.67 30.08 29.19 27.00 28.00 29.00 Community development 16.50 7.00 6.50 7.50 9.50 9.50 11.00 10.50 10.50 12.50 Transit 1.00 1.00 1.00 1.00 1.00 1.00 1.00 0.50 1.00 1.00 Redevelopment and housing 14.00 14.00 14.00 14.00 14.00 14.00 14.00 15.00 15.00 14.00 Water utility 3.75 4.00 3.50 4.00 4.00 4.00 3.50 2.50 1.00 1.00 Environmental protection 5.50 3.00 3.00 3.00 3.00 3.00 3.00 2.00 2.00 1.00 Central equipment 6.00 1.00 - 2.00 2.00 2.00 2.00 2.00 2.00 2.00 Management information systems - - - - 1.00 - 1.00 1.00 1.00 1.00 Total full-time equivalent positions 230.72 225.94 196.75 200.77 212.47 212.38 214.49 212.50 212.50 212.50 Source: Finance Department Budget

CITY OF COVINA, CALIFORNIA
OPERATING INDICATORS BY FUNCTION (1)

LAST TEN FISCAL YEARS
(175)
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
General Government
Finance:

Payroll checks issued 7,569 7,369 7,566 7,811 7,557 7,264 7,295 7,518 7,716 7,604 Accounts payable checks issued 5,729 5,281 5,296 5,500 5,153 5,445 5,380 5,234 5,339 5,178 Purchase orders issued 538 453 440 461 465 474 811 887 986 951 Community Development Block Grant (CDBG):

Seniors Served by Information and Referral Program N/A N/A 216 218 168 125 203 69 36 185 Seniors Served by Case Management Program N/A N/A 64 64 33 49 88 80 45 61 Seniors Served by Nutrition Program N/A N/A 132 127 307 115 239 341 181 256 Persons Served by Literacy Program N/A N/A 16 19 20 14 10 21 15 12 Persons Served by Job Training - - 5 3 14 12 13 11 7 -
Houses rehabilitated 3 2 1 - - - - 1 1 1
Housing:

Transitional House-Number of people served 17 22 11 14 13 21 27 15 5 - Covenants-Monitoring affordable units 460 460 460 460 449 460 460 460 460 460 Public Safety
Police:

Physical arrests 2,038 676 3,005 2,746 2,406 2,534 2,204 2,499 273 1,206 Parking violations 8,380 10,062 3,035 8,955 12,678 15,301 18,167 14,016 9,585 13,574 Traffic violations 1,711 5,426 12,063 1,598 1,355 1,540 2,068 1,895 2,038 1,949 Fire:

Number of calls answered 4,751 4,681 4,641 10,679 11,083 14,218 8,961 14,411 15,335 14,996 Inspections 1,389 2,583 1,472 2,843 2,383 1,964 2,415 1,756 1,936 1,926 Culture and Recreation
Parks and Recreation:

Leaders-in-Training participants 57 66 51 36 12 18 28 28 28 34 Youth sports participants 916 1,199 1,130 934 746 619 1,224 814 1,760 1,173 Leisure lifestyle classes participants 6,457 5,041 4,520 4,028 2,593 1,500 2,461 1,637 3,182 3,650 Cultural excursion program participants 565 595 406 468 326 150 397 420 889 857 Summer evening event attendees 25,000 16,975 17,170 10,100 9,200 1,500 3,827 6,275 9,500 9,500 Senior service participants (fee based) 3,202 2,296 1,036 1,248 939 364 727 357 999 1,462 Senior nutrition program meals served 14,641 12,798 11,642 11,628 19,088 33,758 31,248 42,627 8,391 11,133 Special events attendees 50,000 50,000 50,000 45,000 40,000 5,000 25,000 19,189 30,000 30,000 Special event participants - - - - - - 654 288 533 523
Aquatic participants 6,446 8,134 6,011 5,850 3,884 2,800 2,107 1,189 2,419 2,750 Day Camp Participants 745 842 682 580 402 2,800 375 415 367 401 Library:

Circulation
Books/Audiobooks/CD'S 102,019 100,913 99,434 97,548 67,451 10,564 46,050 54,321 58,051 49,113 DVD's 5,806 4,987 4,141 3,314 1,928 53 704 813 1,280 1,136 Toys 978 2,588 3,436 4,241 2,784 - - - - -
E-books - - 1,381 3,201 4,466 5,880 4,051 4,444 5,907 7,202 Total Circulation 108,803 108,488 108,392 108,303 76,629 16,587 50,805 59,578 65,238 57,451 Gate Count 194,182 189,432 189,021 187,098 120,381 1,273 50,750 48,992 32,279 61,801 Computer Services
Number of hours 10,782 10,374 12,825 12,891 6,298 45 900 1,890 2,324 2,165 Number of users 13,946 13,190 19,848 19,581 10,323 83 1,620 2,916 3,399 3,246 Library Cards
City Residents - Newly Issued 1,520 1,427 1,413 1,364 963 153 666 1,048 1,493 1,124 Non-City Residents - Newly Issued 1,679 1,594 1,257 1,198 865 106 788 954 1,314 750 Total Number of Current Library Cards 32,108 35,129 37,927 40,087 32,824 33,083 34,434 36,436 32,701 34,445 Library materials added
Books 2,580 2,866 2,475 1,827 1,600 1,736 1,605 1,659 2,545 1,471 CDs 222 196 131 198 156 191 117 - - -
Audiobooks 88 83 129 87 54 70 22 - - -
DVD's 150 215 155 212 154 145 179 76 40 54
Toys 119 99 97 67 27 - - - - -
Total Materials Added 3,159 3,459 2,987 2,391 1,991 2,142 1,923 1,697 2,585 1,525 Library Programs/Services
Storytime participants 1,756 1,649 1,542 1,662 1,317 592 390 805 1,301 1,712 Adult/Young Adult program participants 464 470 536 902 869 370 703 1,225 1,315 1,409 Children's program participants 4,264 5,351 7,343 7,264 5,171 1,034 1,085 1,398 1,780 1,809 Summer Reading Program participants 705 799 848 1,076 350 319 385 386 446 407 Joint Summer Reading program participants 811 1,153 1,468 1,818 1,806 - - - - - Accelerated Reader (AR) Testing Program Participants - - - 1,861 2,665 - - 84 507 129 In-N-Out Cover-to-Cover Reading Program 240 252 274 244 366 - 252 269 275 282 Outreach (Class Visits on and off-site, number of participants - - 546 1,227 591 50 - 400 527 482 Homework Help Tutors 11 15 10 - - - - - - -
Homework Help Participants 997 529 418 - - - - - - -
Library volunteer hours (3) 13,754 14,251 8,693 5,877 2,224 103 40 121 188 571

CITY OF COVINA, CALIFORNIA
OPERATING INDICATORS BY FUNCTION (CONTINUED) (1)

LAST TEN FISCAL YEARS
(176)
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Literacy
Number of tutors 23 23 22 20 16 1 1 2 6 7
Number of adults served 79 79 92 83 81 22 27 27 37 25
Number of children served 31 39 43 44 31 - - - - -
Reference Questions
Adult/Circulation 21,418 22,561 20,281 20,778 15,607 1,200 12,500 17,562 19,058 18,095 Childrens 6,650 5,738 7,839 8,312 6,090 - - - - -
Total Reference Questions 28,068 28,299 28,120 29,090 21,697 1,200 12,500 17,562 19,058 18,095 Planning
Planning reviews 1,733 1,820 1,911 283 156 388 633 741 600 636 Permits issued 1,344 1,411 1,482 71 - 147 633 741 - -
Inspections 192 230 242 - - - 633 741 - -
Building
Building reviews 1,362 561 792 820 842 1,040 254 284 372 850 Permits issued 3,494 1,514 894 3,927 3,290 4,598 4,852 335 1,215 1,453 Inspections 4,464 3,038 5,137 4,265 4,506 3,646 5,812 6,102 6,122 5,746 Transit
Average daily parking customers (station & structure paid) 747 (2) (2) 40 666 276 376 587 573 774 Average monthly parking customers (structure paid) - 1,296 688 608 433 326 261 203 194 184 Dial-A-Cab participants (monthly average) 1,158 1,454 1,584 1,722 1,468 933 1,010 890 884 790 Subsidized bus passes (monthly average) 28 52 48 50 30 11 11 13 15 12 Code Enforcement
Total Inspections 1,840 1,902 2,956 834 2,113 1,467 1,951 1,890 2,159 1,897 Signs removed from public right of way 522 233 153 294 278 113 71 42 51 102 Industrial Waste Inspections 1 2 220 176 138 375 343 139 266 228 Water Utility
Average daily consumption (gallons) 3,944,447 4,398,752 5,000,000 5,760,000 3,600,000 3,168,176 4,666,365 4,007,146 4,079,395 4,337,380 Meter reads 103,490 (2) 2,291 (2) 4,252 2,061 2,532 2,419 1,775 1,414 Meter replacements 88 (2) 77 32 28 37 59 31 88 106
Consumer responses 5,805 (2) 590 350 727 208 276 291 331 294 Service line repairs 48 (2) 43 59 33 108 50 38 68 80
Main line repairs 45 (2) 70 49 69 49 82 40 53 43
Street Maintenance
Traffic sign remove/replace/install 185 153 118 102 201 185 185 57 335 167 Potholes repaired 3,629 4,645 3,802 5,390 6,379 3,981 2,792 5,736 3,247 3,529 Curb painted (lf) 17,860 37,370 16,960 75,262 26,788 21,239 4,257 15,918 77,006 11,089 Utility cuts repaired (2) (2) 73 20 87 76 155 21 19 40
Trees trimmed 2,163 231 255 129 158 84 185 284 287 346
Equipment Maintenance
Preventative maintenance service 367 325 284 291 302 288 241 254 234 276 Safety inspections 425 371 320 319 327 332 261 281 237 283 New Tires 82 117 98 121 115 102 102 101 123 140
Tire repairs 177 183 164 167 122 177 185 191 130 70
Work orders completed 829 681 631 646 657 771 696 684 534 586 Environmental Protection
Refuse collected (tons/month) 2,363 2,482 2,450 2,416 1,825 2,991 2,809 3,016 2,760 2,685 Recyclables collected (tons/month) 192 185 162 162 200 351 431 487 570 790 Green waste collected (tons/month) 463 462 457 469 366 929 905 509 812 581 Compressed natural gas sold (gallon equivalents) 33,845 30,999 30,182 29,045 14,427 13,691.04 25,989.00 25,130.00 20,859.69 21,688.00 (1) Information provided by various departments (2) Information not available. (3)Combination of Homework Help volunteer hours and Total volunteer hours. * Revised

CITY OF COVINA, CALIFORNIA
CAPITAL ASSET STATISTICS BY FUNCTION (1)

LAST TEN FISCAL YEARS
(177)
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
General government
Buildings-civic center 1 1 1 1 1 1 1 1 1 1
Public safety
Police:

Stations 1 1 1 1 1 1 1 1 1 1
Patrol units 23 20 20 20 21 22 22 23 23 23
Fire stations 3 3 3 3 3 3 3 3 3 3
Public works
Arterial streets (miles) 35 35 35 35 47 47 47 47 47 47
Residential streets (miles) 87 81 81 81 80 80 80 80 80 80 Curb and gutter (miles) 230 230 230 230 230 230 230 230 230 230 Sidewalk (square feet) 1,001,000 1,001,000 1,001,000 1,001,000 1,001,000 1,001,000 1,001,000 1,001,000 1,001,000 1,001,000 Traffic signals 65 65 65 65 70 70 71 72 72 75
Sanitary sewer (miles) 121 121 121 121 120 120 120 120 120 120 Storm water catch basins 82 71 112 112 112 112 112 117 117 117 Street trees 9,465 9,485 9,473 9,501 9,266 9,058 9,401 9,274 9,184 9,274 Parking structure (spaces) 110 110 110 110 110 110 110 775 775 775 Culture and recreation
Parks and recreation:

Park acreage 54 54 54 54 54 54 54 54 54 54
Parks 9 9 9 9 9 9 9 9 9 9
Skate Park - - - - - - - - 1 1
Dog Parks - - - - - - - - - 1
Horse-walking trails 1 1 1 1 1 1 1 1 1 1
Nature trails 1 1 1 1 1 1 1 1 1 1
Rubberized walking tracks - - - - - - - - - 2
Fitness challenge course - - - - - - - - - 1
Playground areas 9 9 9 9 9 9 9 9 9 9
Swimming pools 2 2 2 2 2 2 2 2 2 2
Splash pad - - - - - - - - - 1
Softball fields 3 3 3 3 3 3 2 1 1 1
Baseball fields 3 3 3 3 3 3 3 3 3 3
Basketball courts 10 10 10 10 10 10 10 10 10 10
Roller hockey rinks 2 2 2 2 2 2 2 2 2 2
Tennis courts 3 3 3 3 3 3 3 3 3 3
Pickleball courts - - - - - - - - 4 4
Parks restrooms - - - - - - - - - 6
Buildings and centers 13 13 13 13 13 13 13 11 11 10
Library buildings 1 1 1 1 1 1 1 1 1 1
Transit
Parking structure (vehicle spaces) 665 665 665 665 663 663 663 663 663 663 Parking lot (secured bicycle spaces) 40 40 40 56 16 16 16 16 16 16 Transit vehicles 5 5 5 5 5 5 5 5 5 5
Housing
Transitional housing 1 1 1 1 1 1 1 1 1 1
Water utility
Water tanks 9 9 9 9 9 9 9 9 9 9
Pump stations 6 6 6 7 7 7 7 7 7 7
Water mains (miles) 102 102 102 102 102 111 111 111 111 109 Service meters 8,633 8,623 8,623 8,600 8,640 8,700 8,851 8,653 8,751 8,588 Fire hydrants 992 1,059 1,059 1,132 1,096 414 1,158 1,184 1,184 1,193 (1) Information provided by various departments for last nine fiscal years. There are no capital asset statistics available for community development and environmental protection. (2) Information not available.

CITY OF COVINA, CALIFORNIA

CONTINUING DISCLOSURE

WATER SYSTEM
(178)
6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022 6/30/2023 6/30/2024 6/30/2025 Water Purchased (in acre-feet)
Covina Irrigating Company (CIC) 4,166.26 4,756.72 5,068.03 5,035.22 5,106.32 5,347.83 5,209.95 4,395.59 4,414.39 4,847.47 Three Valley Muni Water Dist(MWD) 467.20 198.00 62.70 - - 151.00 23.50 92.80 155.00 11.00 Total Purchased 4,633.46 4,954.72 5,130.73 5,035.22 5,106.32 5,498.83 5,233.45 5,233.45 4,569.39 4,858.47 Potable Water Sold (in acre-feet) 4,418.34 4,508.53 4,909.82 4,720.74 4,620.64 4,825.99 4,647.69 4,003.99 3,997.52 4,523.05 Change from previous year -18.46% 2.04% 8.90% -3.85% -2.12% 4.44% -3.69% -13.85% -0.16% 13.15% Population 48,984 49,011 49,006 48,876 48,846 48,833 50,449 50,350 50,485 51,090 Cost of CIC Water $/a-f 495.00 $ 495.00 $ 530.00 $ 530.00 $ 495.00 $ 520.00 $ 474.19 $ 476.00 $ 497.00 $ 497.00 $ Cost of MWD Water $/a-f 906.76 981.67 987.00 987.00 987.00 1,098.00 1,119.10 1,104.02 1,234.12 1,361.55 Number of Water Accounts(1) 8,642 8,638 8,656 8,701 8,506 8,524 8,821 9,044 9,028 9,024 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022 6/30/2023 6/30/2024 6/30/2025 Operating Revenue
Charges for Services 10,436,434 11,011,015 11,138,975 9,586,220 10,673,985 11,681,271 11,823,907 11,401,122 12,380,295 13,379,979 Operating Expenses
Source & supply 2,707,841 2,849,099 3,190,768 3,116,482 3,067,435 3,561,787 3,202,530 3,376,108 3,690,592 4,156,350 Production & storage 911,509 1,072,317 2,224,760 928,941 1,093,228 1,155,010 1,222,831 1,380,661 1,484,185 1,632,686 Transmission & distribution 613,017 1,604,822 1,790,159 1,096,437 1,535,521 1,046,562 1,613,450 1,374,982 1,768,174 1,798,561 Customer acct & collections 1,363,414 1,474,373 1,347,476 1,304,399 906,296 603,793 548,231 433,053 488,170 451,875 Administrative & general 798,833 238,355 (68,719) 1,872,999 1,539,142 2,407,823 1,748,816 2,426,168 2,561,139 2,766,473 Depreciation 953,511 964,403 1,006,332 1,131,906 1,276,414 1,443,409 1,504,189 1,579,745 1,638,002 1,713,669 Total Operating Expenses 7,348,125 8,203,369 9,490,776 9,451,164 9,418,036 10,218,384 9,840,047 10,570,717 11,630,262 12,519,614 Net Revenues 3,088,309 2,807,646 1,648,199 135,056 1,255,949 1,462,887 1,983,860 830,405 750,033 860,365 2010 Bond Installment Payments 990,113 988,713 985,413 986,613 988,713 802,627 1,512,429 1,472,701 1,472,747 1,471,748 2020 BBVA Installment Payments - - - - - 699,742 56,842 341,398 342,204 341,661 Coverage 3.12 2.84 1.67 0.14 1.27 0.97 1.26 0.46 0.41 0.47 6/30/2020 6/30/2021 6/30/2022 6/30/2023 6/30/2024 6/30/2025* Minimum Charge:
5/8" & 3/4" 33.24 $ 36.22 $ 37.67 $ 39.18 40.75 42.38
1" 49.44 56.74 59.01 61.38 63.84 66.40
1-1/2" 76.43 103.65 107.80 112.12 116.61 121.28
2" 115.15 162.30 168.80 175.56 182.59 189.90
3" 215.92 349.95 363.95 378.51 393.66 409.41
4" 359.84 622.64 647.55 673.46 700.40 728.42
6" 719.70 1,376.19 1,431.24 1488.49 1548.03 1609.96
8"
Charge per hundred cubic feet (hcf): 20.90 20.09 21.74 22.61 23.52 Single Family (0-16 ccf) 2.71 45.24 47.05 48.94 50.90 52.94 Single Family (17+ ccf) 3.02 88.60 92.15 95.84 99.68 103.67 Multi-Family (0-12 ccf) 2.71 244.24 254.01 264.18 274.75 285.74 Multi-Family (13+ ccf) 2.96 512.69 533.20 554.53 576.72 599.79 Commercial/Institutional 3.16 916.49 953.15 991.28 1030.94 1072.18 Industrial/Manufacturing 2.74
Irrigation/Landscaping 3.16
City/Miscellaneous 2.75 2.86 2.98 3.10 3.23 3.36
Capital Improvements Projects Fee: 3.50 3.36 3.64 3.79 3.95 5/8" & 3/4" 2.54
1" 6.36 2.99 3.11 3.24 3.37 3.51
1-1/2" 12.72 3.01 3.14 3.27 3.41 3.55
2" 32.55 3.01 3.14 3.27 3.41 3.55
3" 61.03 3.05 3.18 3.31 3.45 3.59
4" 101.71 3.01 3.14 3.27 3.41 3.55
6" 203.43 3.10 3.23 3.36 3.50 3.64
8"
Private Fire Standby Service:
4" 21.71
6" 63.09
8" 134.46
10" 241.80
* Information presented is current as of 12/22/25
Customer
Type of
Business
Consumption
(in acre-feet)
% of total
consumption Revenue
% of total water
sales
Covina School District Governmental 112.42 2.49% $233,987.22 1.89% Inter-Comm Health SVC Commercial 76.04 1.68% $169,079.51 1.37% Covina 023-Woods 206 LP Multiple Family 62.70 1.39% $145,291.35 1.17% Charter Oak Unified School Dist Governmental 58.30 1.29% $101,666.92 0.82% Covina Bowl Owners Association Commercial 28.62 0.63% $88,408.81 0.71% Spruell, Rosario O. Multiple Family 25.79 0.57% $53,433.10 0.43% MZM properties LLC Commercial 23.55 0.52% $45,841.65 0.37% Gref GG Eastland Center L.P. Commercial 21.83 0.48% $53,246.25 0.43% Sonrise Christian School Commercial 21.44 0.47% $42,051.29 0.34% Forbush, Lucienne Multiple Family 20.44 0.45% $37,142.81 0.30% TOTALS 451.14 9.97% 970,149 $ 7.84%
GRAND TOTAL CONSUMPTION 4,523.05 GRAND TOTAL SALES 12, $ 375,668 (1) Information obtained from Water information system
(2) Information obtained from Covina Comprehensive Annual Financial Report Consumption Rates:

Single Family
Tier 1 (0-14 ccf)
Tier 2 (15+ ccf)
Multi-Family
3"
4"
6"
8"
10"
6"
Monthly Fire Line Service Charge:
2"
Monthly Service Charge:
5/8" and 3/4"
1"
1-1/2"
2"
Largest Water Accounts(1)
Summary of Operations
Water System Fund Revenues and Expenses(2)
Water Rates(1)
Uniform Rate
Commercial/Institutional
Industrial/Manufacturing
Irrigation/Landscaping
City/Miscellaneous
Construction
3"
4"

CITY OF COVINA, CALIFORNIA

CONTINUING DISCLOSURE

WASTEWATER SYSTEM
(179)
6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022 6/30/2023 6/30/2024 6/30/2025 Operating Revenue
Special Assessments 2,683,503 2,760,749 2,833,092 2,923,535 2,905,488 3,093,941 3,277,343 2,894,697 2,914,954 2,914,224 Operating Expenses
General & Administrative 785,109 661,138 1,013,663 1,721,983 2,367,418 1,848,785 1,529,927 1,731,926 1,852,922 2,466,612 Depreciation 167,735 167,735 167,735 168,680 179,627 225,865 288,962 356,327 406,018 416,422 Total Operating Expenses 952,844 828,873 1,181,398 1,890,663 2,547,045 2,074,650 1,818,889 2,088,253 2,258,940 2,883,034 Net Revenues 1,730,659 1,931,876 1,651,694 1,032,872 358,443 1,019,291 1,458,454 806,444 656,014 31,190 2009 Bond Installment Payments 1,294,781 1,293,363 1,294,469 1,292,900 266,966 2019 Ref Bond Installment Payments 1,025,239 1,027,631 1,026,054 1,023,768 1,020,861 117,088 2021 Pension Obligation Bonds 113,921 18,968 114,190 114,008 Coverage 1.34 1.49 1.28 0.80 0.28 0.99 1.40 0.71 0.58 0.03 6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022 6/30/2023 6/30/2024 6/30/2025

11.21 11.45 11.45 11.45 11.45 11.45 11.45 11.45
(1) Monthly Rates
Sewer Fund Revenues and Expenses
Sewer Rates (1)

ATTACHMENT B

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CliftonLarsonAllen LLP
CLAconnect.com

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CliftonLarsonAllen LLP
CLAconnect.com
Honorable Mayor and City Council
City of Covina
Covina, California
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Covina (the City), as of and for the year ended June 30, 2025, and have issued our report thereon dated January 7, 2026. We have previously communicated to you information about our responsibilities under auditing standards generally accepted in the United States of America, Government Auditing Standards, and Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), as well as certain information related to the planned scope and timing of our audit in our engagement agreement dated January 19, 2025.

Professional standards also require that we communicate to you the following information related to our audit.

Significant audit findings or issues
Qualitative aspects of accounting practices
Accounting policies
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements.

As described in Note 1, the City changed accounting policies related to compensated absences by adopting Governmental Accounting Standards Board (GASB) Statement No. 101, Compensated Absences, as of and for the year ended June 30, 2025. The cumulative effect of the accounting change as of the beginning of the year was not material.

Additionally, the City changed accounting policies related to the measurement date of the OPEB liability and related balances. Accordingly, the cumulative effect of the accounting change as of the beginning of the year is reported on the Statement of Net Position and Note 20.

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

Accounting estimates
Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the financial statements were:

The OPEB actuarially determined contribution, OPEB expense, total OPEB liability, and corresponding deferred outflows of resources and deferred inflows of resources for the City’s OPEB plan are based on certain actuarial assumptions and methods prepared by an outside consultant.

ATTACHMENT C
Honorable City Council
City of Covina

The claims payable for worker’s compensation and general liabilities are based on estimates by an actuary.

We evaluated the key factors and assumptions used to develop the above estimates in determining they are reasonable in relation to the financial statements taken as a whole.

Financial statement disclosures
Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the financial statements were:

The disclosure of the retirement commitments reported in Note 10 to the financial statements The disclosure of the risk management reported in Note 12 to the financial statements The disclosure of the OPEB commitments reported in Note 16 to the financial statements The financial statement disclosures are neutral, consistent, and clear.

Significant unusual transactions
We identified no significant unusual transactions.

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

Uncorrected misstatements
Professional standards require us to accumulate all misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management.

Management did not identify and we did not notify them of any uncorrected financial statement misstatements.

Corrected misstatements
The following material misstatements were corrected by management:

In FY 2025, the City identified an issue with the classification of development impact fees (DIF) restricted for capital improvement purposes. The City recorded a $974k adjustment to decrease the beginning fund balance of the General Fund and increased the beginning fund balance of various DIF funds.

Disagreements with management
For purposes of this communication, a disagreement with management is a disagreement on a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditors’ report. No such disagreements arose during our audit.

Honorable City Council
City of Covina

Circumstances that affect the form and content of the auditors’ report As previously communicated to you, the report was modified to report for a correction of an error.

Management representations
We have requested certain representations from management that are included in the management representation letter dated January 7, 2026.

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

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

Audits of group financial statements
We noted no matters related to the group audit that we consider to be significant to the responsibilities of those charged with governance of the group.

Required supplementary information
With respect to the required supplementary information (RSI) accompanying the financial statements, we made certain inquiries of management about the methods of preparing the RSI, including whether the RSI has been measured and presented in accordance with prescribed guidelines, whether the methods of measurement and preparation have been changed from the prior period and the reasons for any such changes, and whether there were any significant assumptions or interpretations underlying the measurement or presentation of the RSI. We compared the RSI for consistency with management’s responses to the foregoing inquiries, the basic financial statements, and other knowledge obtained during the audit of the basic financial statements. Because these limited procedures do not provide sufficient evidence, we did not express an opinion or provide any assurance on the RSI.

Supplementary information in relation to the financial statements as a whole With respect to the combining fund financial statements, and the individual budgetary schedules (collectively, the supplementary information) accompanying the financial statements, on which we were engaged to report in relation to the financial statements as a whole, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period or the reasons for such changes, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. We have issued our report thereon dated January 7, 2026.

Honorable City Council
City of Covina

Other information included in annual reports
Other information (financial or nonfinancial information other than the financial statements and our auditors’ report thereon) is being included in your annual report and is comprised of the introductory and statistical sections. Our responsibility for other information included in your annual report does not extend beyond the financial information identified in our opinion on the financial statements. We have no responsibility for determining whether such other information is properly stated and do not have an obligation to perform any procedures to corroborate other information contained in your annual report.

We are required by professional standards to read the other information included in your annual report and consider whether a material inconsistency exists between the other information and the financial statements because the credibility of the financial statements and our auditors’ report thereon may be undermined by material inconsistencies between the audited financial statements and other information.

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.

Our auditors’ report on the financial statements includes a separate section, “Other Information,” which states we do not express an opinion or any form of assurance on the other information included in the annual report. We did not identify any material inconsistencies between the other information and the audited financial statements.
* * *
This communication is intended solely for the information and use of the City Council and management of the City of Covina and is not intended to be, and should not be, used by anyone other than these specified parties.

CliftonLarsonAllen LLP
Irvine, California
January 7, 2026

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INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER

FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS

BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED

IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Honorable Mayor and Members of the City Council
City of Covina
Covina, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Covina (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, and have issued our report thereon dated January 7, 2026.

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

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified.

ATTACHMENT D

Honorable Mayor and Members of the City Council
City of Covina

We identified a certain deficiency in internal control, described in the accompanying schedule of finding and response as item 2025-001 that we consider to be a material weakness.

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

City’s Response to Finding
Government Auditing Standards requires the auditor to perform limited procedures on the City’s response to the finding identified in our audit and described in the accompanying schedule of finding and response. The City’s response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response.

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

CliftonLarsonAllen LLP
Irvine, California
January 7, 2026

CITY OF COVINA

SCHEDULE OF FINDING AND RESPONSE
YEAR ENDED JUNE 30, 2025
2025 – 001: Revenue Recognition
Type of finding: Material Weakness in Internal Control over Financial Reporting Condition: In FY 2025, the City identified an issue with the classification of development impact fees (DIF) restricted for capital improvement purposes. The issue resulted in an adjustment to the beginning fund balance of the General Fund and various DIF funds.

Criteria or specific requirement: The City’s management is responsible for establishing and maintaining internal controls for the proper recording of all the City’s accounting transactions.

Effect: Prior to the audit adjustments being recorded, the City’s financial statements were materially misstated. The City recorded a $974k adjustment to decrease the beginning fund balance of the General Fund and increased the beginning fund balance of various DIF funds.

Cause: The City’s ERP system was set up to report various restricted DIF collections as unrestricted zoning fees.

Recommendation: While the issue with the ERP system has been remedied, we recommend the City continue in its efforts to ensure restricted revenue is recorded in the appropriate fund.

Views of responsible officials and planned corrective actions: City management agrees with this finding and would like to expand on the cause: During implementation of the City’s ERP system, the general ledger mapping for impact fees was incorrect. There is no indication that this was a known issue, as management from that time left the City, mostly due to layoffs. New management, not knowing the presence of this error, attributed fluctuations in revenues to fluctuations in development.

Recently, Planning staff discovered that the fluctuations, although due partly to development, also were caused by misclassification. Upon further research, it was discovered that the misclassification was not due to clerical input but was a coding error. Planning, in conjunction with Finance staff, has implemented controls to over the DIF revenue process for the FY 2025/2026 audit.

CC Regular Meeting

AGENDA ITEM REPORT
ITEM NO. CC 19
Meeting: January 20, 2026
Title: Proposed Allocation of $308,795 in Permanent Local Housing Allocation (PLHA) Funds to a Future Homeownership Opportunities Assistance Program Presented by: Brian K. Lee, AICP, Deputy City Manager/Director of Community Development Alana Mantilla, Economic Development Manager
Recommendation: 1. Adopt Resolution CC 2026-12, approving the allocation of funds from participation in the Los Angeles Urban County Permanent Local Housing Allocation Program for FYs 2023-2024 and 2024-2025 to the Homeownership Opportunities Assistance category; and

2. Authorize the City Manager or his designee to execute related documents as necessary.

In 2017, Governor Brown signed Senate Bill 2 (“Building Homes and Jobs Act”) into law, which created the Permanent Local Housing Allocation (PLHA) Program to provide a permanent source of funding for affordable housing in the State of California. PLHA revenue is derived through a $75 recording fee imposed on real estate transactions and is administered by the State Department of Housing and Community Development (“HCD”) and Los Angeles Community Development Authority (“LACDA”).

Eligible activities under PLHA include the following types of activities: Acquisition/development costs for affordable, multi-family rental housing; Acquisition/development costs for affordable rental and ownership housing; Preservation and creation of permanent supportive housing; Assisting persons experiencing or at risk of homelessness; Accessibility modifications in lower-income, owner-occupied housing; and Homeownership opportunities, including down payment assistance.

On November 18, 2025, the City Council approved the reallocation of $785,076 in PLHA funds for FYs 20-21, 21-22, and 22-23 from Activity 1 (Multifamily Housing) to Activity 9 (Homeownership Opportunities Assistance) and directed staff to work to create a Homeownership Program using program funds.

As proposed, the City Council will consider reallocating $308,795 in FY 23-24 and FY 24-25 funds to the Homeownership Opportunities Assistance Program (“Homeownership Program”) utilizing approximately $308,795 in local PLHA funds that have accumulated to date. The proposed Homeownership Program has been reviewed by LACDA and determined to be an eligible use of the funds. If authorized, staff will continue to develop program application materials and guidelines and add this funding to the pool, with an anticipated program launch in spring 2026.

DISCUSSION:

The PLHA Program was designed to provide local agencies with resources to create and preserve affordable housing stock. A list of eligible PLHA activities is shown in Attachment A. Though the City has long desired to create an affordable housing project, the process of obtaining land and the future predevelopment, funding, entitlement, screening/selection of a development firm, and construction is likely to take several years to complete. Per the PLHA program guidelines, use of these funds must EXECUTIVE SUMMARY/ BACKGROUND:

provide occupied housing units no later than December 2029. Since it is likely that the completion of an affordable housing project would not be completed by 2029, the City Council may consider allocating funds to another eligible activity under the PLHA guidelines to meet this deadline.

In November 2025, the City Council authorized the reallocation of PLHA funds from prior fiscal years to a Homeownership Opportunities Assistance Program-first-time homebuyer down payment assistance program. As proposed, the attached resolution would allocate PLHA funds from fiscal year 2023-24 and 2024-25 totaling $308,795 for this purpose, augmenting existing funds previously allocated to the program. If authorized, an aggregate amount of approximately $1.09 million will be available for the down payment assistance program with up to twenty percent (20%) available for program administration, including legal support and staff resources to process applications, provide applicant assistance, and coordinate escrow materials, leaving approximately $750,000 available for direct down payment assistance loans or grants.

Program materials are anticipated to continue development over the next several months and will be brought back to the City Council for consideration, with an application process potentially launching in spring 2026. In accordance with PLHA guidelines, households earning up to one hundred fifty percent (150%) of area median income are eligible to participate in the program.

FISCAL IMPACT:

There is no impact to the general fund. Adequate appropriations exist in fund 2120.

CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):

This activity will not result in a reasonably foreseeable change to the physical environment; it is exempt from CEQA under State CEQA Guidelines 15061 (b) (2) and (3) and does not constitute a project.

Respectfully submitted,

ATTACHMENT B: PLHA ELIGIBLE ACTIVITIES
 Multifamily Rental Housing
 Acquisition  Predevelopment  Development
 Rehabilitation  Preservation  Operating Subsidies
The predevelopment, development, acquisition, rehabilitation, and preservation of multifamily, residential live-work, or rental housing that is Affordable to extremely low-, very low-, low-, or Moderate-income households (up to 120 percent of Area Median Income (AMI), or 150 percent of AMI in High-cost areas, see appendix B for a list of High-cost areas, including necessary Operating subsidies).
 Affordable Rental, Ownership, and ADU Housing
 Acquisition  Predevelopment  Development
 Rehabilitation  Preservation
The predevelopment, development, acquisition, rehabilitation, and preservation of Affordable rental and ownership housing, including Accessory dwelling units (ADUs), that meets the needs of a growing workforce earning up to 120 percent of AMI, or 150 percent of AMI in highcost areas. ADUs shall be available for occupancy for a term of no less than 30 days.  Matching Funds to Regional Housing Trust Funds
Matching portions of funds available through the Low- and Moderate-Income Housing Asset Fund pursuant to subdivision (d) of HSC Section 34176.
 Housing for Homeless
 Rapid Rehousing  Rental Assistance  Supportive Case Management  Operating Costs for Navigating Centers  Capital Costs for Navigation Centers  Operating Costs for Emergency Shelters  New Construction  Rehabilitation  Preservation
Assisting persons who are experiencing or At risk of homelessness, including, but not limited to, providing rapid rehousing, rental assistance, supportive/case management services that allow people to obtain and retain housing, operating and capital costs for navigation centers and emergency shelters, and the new construction, rehabilitation, and preservation of permanent and transitional housing. (A) This Activity may include subawards to Administrative Entities as defined in HSC Section 50490(a)(1-3) that were awarded CESH program or HEAP funds for rental assistance to continue assistance to these households. (B) Applicants must provide rapid rehousing, rental assistance, navigation centers, emergency shelter, and transitional housing activities in a manner consistent with the Housing First practices described in 25 CCR, Section 8409, subdivision (b)(1)-(6) and in compliance with WIC Section 8255(b)(8). An Applicant allocated funds for the new construction, rehabilitation, and preservation of Permanent supportive housing shall incorporate the core Department of Housing and Community Development 13 2019 PLHA Final Guidelines components of Housing First, as provided in WIC Section 8255, subdivision (b).

ATTACHMENT A

 Accessibility Modifications for Owner-Occupied Housing Accessibility modifications in Lower-income Owner-occupied housing.

NOTE: This PLHA Activity will now be funded under Affordable Rental, Ownership, and ADU Housing/Rehabilitation
 Homeownership Opportunities Assistance
Homeownership opportunities, including, but not limited to, down payment assistance.

GOALS:

Estimated Number of Accomplishments
Performance Indicators: Units or Households

December 3, 2024
Chris Marcarello, City Manager
City of Covina
125 E. College Street
Covina, CA 91723
Dear Chris Marcarello:

AWARD LETTER NOTICE YEAR 5 (2023 ALLOCATION)

PERMANENT LOCAL HOUSING ALLOCATION PROGRAM
The Los Angeles County Development Authority (LACDA) is pleased to announce that the City’s tentative Year 5 Permanent Local Housing Allocation (PLHA) funding allocation is $133,193. Overall, LACDA experienced a decreased level of funding for Year 5 PLHA funds, which is why you will see less funding available now compared to prior years.

Once the LACDA receives the Year 5 funding from the State of California Department of Housing and Community Development (HCD), the city of Covina will be required to enter a contract with the LACDA that will set forth the conditions for funding and program/regulatory requirements that are required to be met for the funding and implementation of the City’s PLHA funded activity. Please note that in order to receive funding, the City must be in compliance, specifically having a State approved Housing Element at the time of the award commitment from the State to LACDA.

If you wish to accept these funds for current or new eligible activities, the city of Covina must:

1. Submit a Letter of Intent which includes concise details of the proposed Activity and Sub-Activity and describes how the City plans to expend the funds by June 30, 2028;

2. Complete a proposed Exhibit A form for the planned activity;

3. Provide a city council approved resolution; and

4. Provide proof of 30-day Public Notice.

Please submit all required documentation on or before February 14, 2025. If the Letter of Intent, including supporting documentation is not received by the due date, the available allocation will be retained by the County and reallocated to Countywide program(s).

ATTACHMENT B

Chris Marcarello, City Manager
December 3, 2024

Should you have any PLHA funding allocation questions, please contact Jenny Salazar, PLHA Specialist at (626) 586-1633 or [email protected]. For assistance related to your PLHA program activities, please contact your contract manager, Vanessa Estella at [email protected] or (626) 586-1508.

Sincerely,
LINDA JENKINS, Director
Community Development Division
c: Alana Spector, Primary
Anita Agramonte, Financial Director
Attachments
LJ:MC:JED:JS:AB:lh
PLHA Award Letter Notice_Year
Micah Chen (Dec 3, 2024 15:23 PST)
Micah Chen

C:\Program Files\eSCRIBE\TEMP\17301254099\17301254099,,,Attachment C - Exhibit A.doc

ATTACHMENT C

PERMANENT LOCAL HOUSING ALLOCATION PROGRAM EXHIBIT A INPUT FORM

1. ACTIVITY:
(a) Project Title: Covina Down Payment Assistance Program (b) Beginning Date: 2/1/2026 Ending: 9/30/2026

2. OPERATING AGENCY:
(a) Agency Name: City of Covina
(b) Agency Address:
125 E. College Street, Covina, CA 91723
(c) Contact Information:

Name: Alana Mantilla
Title: Economic Development Manager
Telephone Number: 636-384-5443
E-mail Address:
[email protected]

3. PROJECT ADMINISTRATION:

City of Covina, 125 E. College Street, Covina, CA 91723 Alana Mantilla, Economic Development Manager – [email protected]; 626-384-5443 Alice Leung, Management Analyst – [email protected]; 626-384-5509

4. CONTRACTED SERVICES/SUBRECIPIENTS: (Describe duties to be performed.) We will contract with a consultant to administer the program following its creation. The cost will remain within the 20% cap provided. The consultant will administer the City’s Down Payment Assistance Program by managing program implementation, processing applications, verifying eligibility, and coordinating with lenders and escrow to close loans.

They will handle financial tracking, reporting, and compliance with all applicable regulations. The consultant will also provide outreach, applicant support, and program evaluation to help the City effectively assist eligible households in achieving homeownership.

C:\Program Files\eSCRIBE\TEMP\17301254099\17301254099,,,Attachment C - Exhibit A.doc

5. ACTIVITY ELIGIBILITY SUMMARY: Select Activity and Sub-Activity:
 Multifamily Rental Housing
 Acquisition  Predevelopment  Development
 Rehabilitation  Preservation  Operating Subsidies
 Affordable Rental, Ownership, and ADU Housing
 Acquisition  Predevelopment  Development
 Rehabilitation  Preservation
 Matching Funds to Regional Housing Trust Funds
 Housing for Homeless
 Rapid Rehousing  Rental Assistance  Supportive Case Management  Operating Costs for Navigating Centers  Capital Costs for Navigation Centers  Operating Costs for Emergency Shelters  New Construction  Rehabilitation  Preservation
X Homeownership Opportunities Assistance
(b) Estimated Number of Accomplishments:
5 households provided with assistance
(c) Performance Indicator:
 Units
x Households

6. ACTIVITY SUMMARY:
(a) Provide a detailed description of the activity to be implemented within the overall project. The summary should provide sufficient detail (who, what, when, where) to permit a clear understanding of the nature, beneficiaries, and eligibility of the activity.

The City of Covina is proposing to use grant funds to establish an approximately $50,000 Down Payment Assistance Program to support homeownership opportunities for approximately 5 households. The program will assist incomequalified buyers earning up to 150% of the Area Median Income (AMI) in purchasing homes located within the City of Covina. Assistance will be provided in the form of a deferred loan, with repayment required upon sale or rental of the home, or upon a refinance that results in cash out. This program will help expand access to homeownership and promote long-term community stability. If approved, this program will begin in 2026, ideally in Q2. Staff will design the program, and will hire a consultant to assist in administering the program and for legal fees and similar costs associated in the review of submissions and in program design. (b) Will this project involve construction expenses of $1,000 or more?  Yes x No

7. ACTIVITY SERVICE AREA INFORMATION:

C:\Program Files\eSCRIBE\TEMP\17301254099\17301254099,,,Attachment C - Exhibit A.doc (a) Service Area (Select the method by which you will define your service area):
x Citywide  Countywide  Districtwide
 Other - Please describe, i.e. San Gabriel Valley, Unincorporated South Whittier (b) Site Address/Type/Census Tract: n/a, will be City-wide Site Address Type (Choose one only.) Census
Tract(s)
 Construction Site
 Service Facility
 Construction Site
 Service Facility
 Construction Site
 Service Facility
 Construction Site
 Service Facility
 Construction Site
 Service Facility

8. ACTIVITY BUDGET SUMMARY: (The Operating Agency understands that no expenditures may be incurred before the contract has been fully executed.)
Budget by Cost Category Total
Personnel $
Non-Personnel $650,000
Capital Outlays $
Administration $135,076
TOTAL: $785,076

9. ACTIVITY LEVERAGED FUNDING SOURCES:

Source Amount Source Amount
n/a $n/a $
$ $
$ $
$ TOTAL: $

10. IMPLEMENTATION SCHEDULE: (For predevelopment, construction, acquisition, rehabilitation, or preservation activities only.)

C:\Program Files\eSCRIBE\TEMP\17301254099\17301254099,,,Attachment C - Exhibit A.doc Milestone Target Date (MonthDay-Year)Comments
Phase 1:

Phase 2:

Phase 3:

Phase 4:

Phase 5:

Phase 6:

Phase 7: Construction Completed
Phase 8: Post Construction/Labor
File Review

11. COMMENTS: If necessary, attach any additional information which you believe will assist in evaluating your project’s eligibility.

EXHIBIT A INPUT FORM INSTRUCTIONS
(1) ACTIVITY
(a) Project Title:

Each project is given an activity title that gives a clear indication of the overall nature of the activity (e.g., “Walnut Park Division Project - First District”). Do not exceed 60 characters. (b) Funding Period:

Each activity must be given a funding period. For each Program Year, no projects may start, or incur costs, earlier than the contract execution date and no later than 90-days prior to the Program Year deadline. Except for certain predevelopment costs, any costs incurred outside of the contract term must be disallowed. (2) OPERATING AGENCY
(a) Agency Name: Identify the Operating Agency of the proposed activity described in this Exhibit A Input Form. (b) Agency Address: Identify the Agency's mailing address. (c) Contact Information
 Contact Name: Identify the name of the Division's contact person. This contact person should be able to answer questions related to the project and the related contract that may develop from this Exhibit A Input Form. This person could be the Grants Manager, Division Budget Analyst, or Project Manager.  Title: Identify the title of the contact person.
 Telephone Number: Identify the area code and telephone number of the contact person.  E-mail Address: Identify the contact person’s e-mail address. (3) PROJECT ADMINISTRATION
Identify the entity administering the project. Include the name(s) and title(s) of the project manager(s), and the address and phone number for the Agency administering the project, if other than a LACDA Project Manager. (4) CONTRACTED SERVICES/SUBRECIPIENTS

C:\Program Files\eSCRIBE\TEMP\17301254099\17301254099,,,Attachment C - Exhibit A.doc List the name(s) of the individuals, firms, or subrecipients providing contracted services as part of the project.

Describe the duties to be performed under the contract or agreement, and indicate whether the individual, firm or agency has already been selected.
 Contracted services include legal counsel, bookkeeping, construction, as well as architectural and engineering services and must be obtained through a procurement process.  Subrecipient agencies include public or private non-profit entities providing services such as youth or senior programs.
(5) ACTIVITY ELIGIBILITY SUMMARY
(a) Select Activity and Sub-Activity: Indicate proposed project activity and budget. You may select more than one activity for each funding year.
(b) Expected Accomplishments:

Based on the the performance indicator, provide the specific accomplishments your Agency expects to achieve by the end of the contract period using PLHA funds only. Remember that the selection of the correct performance indicator at the inception of a project is very important because it identifies the nature of the activity to be undertaken. The Performance Indicator that is selected is then used as a tool to measure the performance of a funded project. The goal may include the number of households assisted housing units made available because of this funding. (c) Performance Indicator:

Identify the performance indicator that most correctly corresponds to the activity. The performance indicator may include number of units or households assisted.
(6) ACTIVITY SUMMARY:
(a) Detailed Description: Provide a detailed description of the activity to be implemented within the overall project.

The summary should provide sufficient detail (who, what, when, where) to permit a clear understanding of the nature, beneficiaries, and eligibility of the activity.

The description must clearly describe what PLHA funds will pay for and indicate whether a subrecipient, consultant, or staff will undertake the implementation of the activity. Please include a line-item level listing of proposed expenditures.

For example, "Funds will be used for travel, space costs, consultant services", etc. For equipment purchases exceeding $300 per unit, please specify the equipment to be purchased (e.g., a copier, facsimile machine, computer, etc.). Also, include proposed accomplishments for leveraged funding (e.g., Other specific public funds, Tax Credits, Bond Fees, Other Private, etc.).
(b) Will this project involve construction expenses of $1,000 or more?  Yes  No (7) ACTIVITY SERVICE AREA INFORMATION
(a) Service Area: Identify the service area for the proposed project. Please note that we will utilize Census 2000 data as found in Map Locator.
(b) Site Address/Type/Census Tracts: Indicate the address of the site(s). Indicate if it is a construction or a service facility. Indicate what census tract(s) it is in (if construction) or the census tracts it serves (if a facility). (8) ACTIVITY BUDGET SUMMARY
Budget: Indicate budgeted amounts by Cost Category: Personnel, Non-Personnel, Capital Outlays, and Administration.

In developing your construction activity (if applicable), consider whether State prevailing wage requirements apply to the activity. In general, State prevailing wage applies to construction projects with expenses of $1,000 or more.

Please complete an Exhibit A form for each Activity and Sub-Activity. It will be considered on a project-by project basis if these may be combined into a single project that will be completed during the same contract term using the same Program Year funding.
(9) ACTIVITY LEVERAGED FUNDING SOURCES
Indicate the type and amount of leveraged funds to be used for this activity. Please note that PLHA funds are not to be included in this Section. Leveraged funds are project funds in addition to PLHA funds. (10) IMPLEMENTATION SCHEDULE