Cudahy City Council
January 21, 2025

AGENDA

A REGULAR MEETING

OF THE CUDAHY CITY COUNCIL
and JOINT MEETING of the
CITY OF CUDAHY AS SUCCESSOR AGENCY and HOUSING SUCCESSOR AGENCY

TO THE CUDAHY DEVELOPMENT COMMISSION
Tuesday, January 21, 2025 – 6:30 P.M.

Written materials distributed to the City Council within 72 hours of the City Council meeting shall be available for public inspection at www.cityofcudahy.com In compliance with the Americans with Disabilities Act (ADA) if you need special assistance to participate in this meeting, you should contact the City Clerk’s Office at (323) 773-5143 at least 72 hours in advance of the meeting.

Rules of Decorum
Under the Government Code, the City Council may regulate disruptive behavior that impedes the City Council Meeting.

Disruptive conduct may include, but is not limited to:
• Screaming or yelling during another audience member’s public comments period; • Profane language directed at individuals in the meeting room; • Throwing objects at other individuals in the meeting room; • Verbal altercations with other individuals in the meeting room; and • Going beyond the allotted three-minute public comment period granted.

When a person’s or group’s conduct disrupts the meeting, the Mayor or presiding officer will request that the person or group stop the disruptive behavior and WARN the person or group that they will be asked to leave the meeting room if the behavior continues.

If the person or group refuses to stop the disruptive behavior, the Mayor or presiding officer may order the person or group to leave the meeting room and may request that those persons be escorted from the meeting room. Any person who, without authority of law, willfully disturbs or breaks up a City Council meeting is guilty of a misdemeanor. (Pen. Code, § 403.)
Elizabeth Alcantar Loza, Mayor
Cynthia Gonzalez, Vice Mayor
Martin U. Fuentes, Council Member
Amanda Gomez, Council Member
Daisy Lomelí, Council Member
This meeting will be conducted in
person, telephonically, and
electronically.

Council Chambers/Bedwell Hall
5240 Santa Ana Street
Cudahy, CA 90201
Teleconference Phone Number:
1 (669) 900-6833
Meeting ID: 813 0750 6432
https://us06web.zoom.us/j/81307506432

City of Cudahy
City Council and Successor Agency
Regular Meeting Agenda
January 21, 2025, at 6:30 P.M.

1. CALL TO ORDER

2. ROLL CALL
Council / Agency Member Fuentes
Council / Agency Member Gomez
Council / Agency Member Lomelí
Vice Mayor / Vice Chair Gonzalez
Mayor / Chair Alcantar Loza

3. APPROVAL OF AGENDA

4. PLEDGE OF ALLEGIANCE

5. LAND ACKNOWLEDGMENT
We would like to acknowledge that the land we inhabit today was once known as Tovangaar, the home of the Gabrieleño-Tongva people. We show our respects to the Gabrieleño-Tongva people, as well as all Indigenous people, past, present, and future, and honor their labor as original caretakers of this land. We commit to uplifting the Gabrieleño-Tongva people, invite you to acknowledge the history, and join us in caring for this land.

6. PRESENTATIONS
A. Republic Services Quarterly Update
B. Presentation by the Office of Economic Opportunity

7. PUBLIC COMMENTS
(Each member of the public may provide a public comment in person, telephonically or electronically.

In person participants must submit one comment card if they wish to address the City Council. Only speakers that submit a comment card within the first 20 minutes of the meeting will be permitted to speak. Remote participants may provide public comment by clicking the hand icon on Zoom or pressing star (*) nine (9) on the telephone, if they wish to address the City Council. Members of the public are permitted to speak for three (3) minutes concerning items under the City Council’s jurisdiction, including items on the council agenda.)
(Any person who, without authority of law, willfully disturbs or breaks up a City Council meeting is guilty of a misdemeanor. (Pen. Code, § 403).)

8. CITY COUNCIL COMMENTS / REQUESTS FOR AGENDA ITEMS (Each Council Member is limited to three minutes.)
(This is the time for the City Council / Agency to comment on any topics related to “City Business,” including announcements, reflections on city / regional events, response to public comments,

City of Cudahy
City Council and Successor Agency
Regular Meeting Agenda
January 21, 2025, at 6:30 P.M.

suggested discussion topics for future council meetings, general concerns about particular city matters, questions to the staff, and directives to the staff (subject to approval / consent of the City Council majority members present, regarding staff directives). Each Council / Agency Member will be allowed to speak for a period not to exceed three (3) minutes. Notwithstanding the foregoing, the City Council Members shall not use this comment period for serial discussions or debate between members on City business matters not properly agendized. The City Attorney shall be responsible for regulating this aspect of the proceeding.)

9. CITY MANAGER REPORT (information only)

10. REPORTS REGARDING AD HOC, ADVISORY, STANDING, OR OTHER COMMITTEE

MEETINGS

11. WAIVER OF FULL READING OF RESOLUTIONS AND ORDINANCES (Consideration to waive full text reading of all Resolutions and Ordinances by single motion made at the start of each meeting, subject to the ability of the City Council / Agency to read the full text of selected resolutions and ordinances when the item is addressed by subsequent motion.) (COUNCIL / AGENCY)
Recommendation: Approve the Waiver of Full Reading of Resolutions and Ordinances.

12. CONSENT CALENDAR
(Items under the Consent Calendar are considered routine and will be enacted by one motion, prior to the vote to approve the Consent Calendar, each Council Member shall have a maximum of three (3) minutes to comment on the Consent Calendar as a whole. There will be no separate discussion of these items unless a Council / Agency Member so requests specific item(s) be removed from the Consent Calendar for separate action. Items may only be considered as a separate action if either (1) a Council Member must recuse themselves due to a conflict of interest or (2) a Council Member has specific questions for City Staff. Items called for separate discussion will be heard as the next order of business.)

AS CITY COUNCIL
A. Consideration to Review and Approve the Draft Minutes of December 3, 2024, for the Special Meeting of the City Council and the Joint Meeting of the City of Cudahy as Successor Agency and Housing Successor Agency to the Cudahy Development Commission (page 9) Presented by the City Clerk
Recommendation: The City Council is requested to review and approve the City Council / Successor Agency Draft Minutes for December 3, 2024.

B. Approval of the Local Agency Investment Fund (LAIF) for the Month of December 2024 (page 23)

City of Cudahy
City Council and Successor Agency
Regular Meeting Agenda
January 21, 2025, at 6:30 P.M.

Presented by the Finance Director
Recommendation: The City Council is requested to approve the Local Agency Investment Fund (LAIF) Report for the month of December 2024 in the amount of $11,156,151.16.

C. Approval of the City Demands and Payroll Including Statement of Investment for the Month of December 2024 (page 27)
Presented by the Finance Director
Recommendation: The City Council is requested to approve the Demands and Payroll in the amount of $1,601,849.17 including the Statement of Investments for the month of December 2024.

AS SUCCESSOR AGENCY
D. Consideration to Adopt Resolution No. SA 25-01 for Approval of the Administrative Budget for Fiscal Period of July 1, 2025 to June 30, 2026 (page 39) Presented by the Finance Director
Recommendation: The Successor Agency is requested to adopt a proposed Resolution No.

SA 25-01 approving the Administrative Budget for the Recognized Obligation Payment Schedule (ROPS) for the fiscal period of July 1, 2025 to June 30, 2026 (ROPS 25-26).

E. Approval of the Recognized Obligation Payment Schedule for the Fiscal Period of July 1, 2025 to June 30 2026 (ROPS 25-26) (page 47)
Presented by the Finance Director
Recommendation: The Successor Agency is requested to approve the Recognized Obligation Payment Schedule (ROPS) for the fiscal period of July 1, 2025 to June 30, 2026 (ROPS 25-26), for submission to the City of Cudahy Oversight Board.

13. PUBLIC HEARING
A. A Public Hearing to Consider and Adopt Resolution No. 25-01 of the City Council Approving the Community Development Block Grant (“CDBG”) Programs and Funding for Fiscal Year 2025-2026 (page 55)
Presented by Senior Planner

City of Cudahy
City Council and Successor Agency
Regular Meeting Agenda
January 21, 2025, at 6:30 P.M.

Recommendation: The City Council is requested to take the following action(s):

1. Open the public hearing, receive testimony and presentation of the proposed programs; and

2. Authorize City staff to release a Request for Proposal to seek qualified consulting firms for the provisions of CDBG Housing Rehabilitation Services and CDBG Administration for Fiscal Year 2025-26; and

3. Authorize City staff to release a Request for Proposal to seek qualified organizations/providers to administer the Youth Crime Prevention Program for Fiscal Year 2025-26; and

4. Adopt Resolution No. 25-01 approving the CDBG programs and budget for Fiscal Year 2025-2026; and

5. Authorize the City Manager to execute all contracts and agreements with the Los Angeles County Development Authority, CDBG Program subrecipients, and CDBG Program consultants.

14. BUSINESS SESSION
A. Receive and File of the FY 2023-24 Audited Financial Statements and Related Reports (page 67) Presented by the Finance Director
Recommendation: The City Council is requested to receive and file the FY 2023-24 Audited Financial Statements and Related Reports.

B. City Manager’s Annual Presentation (page 187)
Presented by the City Manager
Recommendation: The City Council is requested to receive and file the City Manager’s Annual Presentation.

C. Adoption of a Proposed Resolution No. 25-02 Augmenting the City of Cudahy Fiscal Year (FY) 2024-2025 City Budget (page 189)
Presented by the Finance Director
Recommendation: The City Council is requested to:

1. Receive and file the Fiscal Year (FY) 2024-2025 Mid-Year Budget review and related reports; and

City of Cudahy
City Council and Successor Agency
Regular Meeting Agenda
January 21, 2025, at 6:30 P.M.

2. Adopt proposed Resolution No. 25-02 augmenting the City of Cudahy Fiscal Year (FY) 2024-2025 City Budget.

D. Adoption of the City’s 2025 Legislative Platform (Platform) (page 207) Presented by the Assistant to the City Manager
Recommendation: The City Council is requested to adopt the 2025 Legislative Platform (Platform) to guide the City’s legislative priorities and funding efforts at the local, regional, state, and federal levels of government.

E. Consideration to Appoint a Delegate and Alternate to the Southeast Gateway Line Corridor Cities Committee (page 227)
Presented by the City Clerk
Recommendation: The City Council is recommended to appoint a Delegate and Alternate to the Southeast Gateway Line Corridor Cities Committee.

F. Discussion and Direction Regarding Potential Withdrawal from the California Cities for SelfReliance Joint Powers Authority (page 237) Presented by the City Clerk
Recommendation: The City Council is requested to discuss and consider directing staff to commence the withdrawal process from the California Cities for SelfReliance Joint Powers Authority.

G. City Council Discussion: Public Safety Strategies and Related Concerns (page 261) Presented by the Assistant to the City Manager
Recommendation: The City Council is requested to provide city staff with further direction on public safety strategies and related concerns.

15. COUNCIL DISCUSSION - NONE

16. CLOSED SESSION - NONE

17. CLOSED SESSION ANNOUNCEMENT - NONE

City of Cudahy
City Council and Successor Agency
Regular Meeting Agenda
January 21, 2025, at 6:30 P.M.

18. ADJOURNMENT
I, Richard Iglesias, hereby certify under penalty of perjury under the laws of the State of California that the foregoing agenda was posted on the City’s Website, City Hall, Clara Park, and Lugo Park not less than 72 hours prior to the meeting. A copy of said Agenda is on file in the City Clerk’sOffice.

Dated this 16th day of January 2025
Richard Iglesias
City Clerk

Blank Page

“Serving the People” "Sirviendo A La Comunidad"
Staff Report
01/21/2025 Page 1 of 2

STAFF REPORT
Date: January 21, 2025
To: Honorable Mayor/Chair and City Council/Agency Members From: Alfonso Noyola, City Manager/Executive Director
By: Richard Iglesias, City Clerk
Subject: Consideration to Review and Approve the Draft Minutes of December 3, 2024, for the Special Meeting of the City Council and the Joint Meeting of the City of Cudahy as Successor Agency and Housing Successor Agency to the Cudahy Development Commission

RECOMMENDATION
The City Council is requested to review and approve the City Council / Successor Agency Draft Minutes for December 3, 2024.

BACKGROUND / ANALYSIS
On December 12, 2016, the City Council of the City of Cudahy adopted Resolution No. 16-38, approving the use of summary action minutes, meant to allow the City Clerk's Office to write the minutes in brief, assuring a record of Council's actions, due to having a recording of the full Council Meeting on the City’s website.

Historically
The Municipal Clerk is one of the oldest professions in government, dating back to 1272 A.D., originating in England. The record keeper then was called Remembrancer, an English official whose job was to remind the Lord Treasurer and Barons of Court, of business pending.

Years later, in the 1600s, when early colonists came to America, the office of the Clerk was one of the first offices to be established. Over the years, the City Clerk’s office has become the core for local government, and the liaison to the residents of the Community. The Municipal Item Number
12A

“Serving the People” "Sirviendo A La Comunidad"
Staff Report
01/21/2025 Page 2 of 2
Clerk (City Clerk) is the record keeper of a City’s recorded history.

William Bennett Munro, a Canadian historian, and political scientist, who taught at Harvard University and the California Institute of Technology, stated in one of his first textbooks written: “No other office in municipal service has so many contacts. It serves the Mayor, the City Council, the City Manager (when there is one), and all administrative departments, without exception. All of them call upon it, almost daily, for some service or information. Its work is not spectacular, but it demands versatility, alertness, accuracy, and no end of patience.

The public does not realize how many loose ends of city administration this office pulls together.”
Moving forward to the present time, the City Clerk’s office today is generally responsible for keeping a record of City Council meetings; agreements; recordings of official documents; legal advertisements; municipal elections; commissions and committees current files; claims against the city; and other legal or official documents.

City Clerks are required to keep record of the proceedings (minutes) of Council meetings (Government Code Sections 36814 and 40801). Minutes are the official record of a meeting which provides a history of the Council’s decisions and actions.

CONCLUSION
The City Council is requested to approve the attached City Council / Agency Draft Minutes of the proceedings of December 3, 2024.

STRATEGIC PLAN CORRELATION
No correlation to the strategic plan.

FINANCIAL IMPACT
No Financial Impact.

ATTACHMENT
A. December 3, 2024, Draft Minutes
B. Resolution No. 16-38, approving the City Clerk’s use of Summary Action Minutes as the Official Record of the City Council proceedings.

City Council/Successor Agency Minutes of 12/3/2024 Page 1 of 10

MINUTES
CUDAHY CITY COUNCIL REGULAR MEETING and
CITY OF CUDAHY AS SUCCESSOR AGENCY and

HOUSING SUCCESSOR AGENCY TO THE CUDAHY

DEVELOPMENT COMMISSION JOINT MEETING
December 3, 2024, 6:30 P.M.

1. CALL TO ORDER
Mayor / Chair J. Gonzalez called the meeting to order at 6:35 p.m.

2. ROLL CALL
PRESENT: Council / Agency Member Martin Fuentes
Council / Agency Member Cynthia Gonzalez
Council / Agency Member Daisy Lomelí
Vice Mayor / Vice Chair Elizabeth Alcantar
Mayor / Chair Jose R. Gonzalez
ABSENT: None
ALSO PRESENT: City Manager, Alfonso Noyola, Assistant City Manager, Community Development Director, Juan Arauz, Assistant City Attorney, Paloma McEvoy, City Clerk, Richard Iglesias, Assistant City Clerk, Estefania Zamora, Finance Director, Joshua Calhoun, Public Works Director, Raul Diaz, Community Services Director, Brenda Rodriguez, Assistant to the City Manager, John Peraza, Senior Planner, Cecilia Madrigal-Gonzalez, and Administrative Analyst, Lisette Gonzalez.

3. APPROVAL OF AGENDA
Motion: Council Member Fuentes motioned to table item 14E to the next regular City Council meeting, seconded by Vice Mayor Alcantar. Motion passed 4-0 by the following roll call vote:

AYES: Fuentes, C. Gonzalez, Lomelí, and Alcantar
NOES: None
ABSENT: None
ABSTAIN: J. Gonzalez
Motion: Council Member Lomelí motioned to approve agenda without item 14E, seconded by Vice Mayor Alcantar. Motion passed 5-0 by the following roll call vote:

AYES: Fuentes, C. Gonzalez, Lomelí, Alcantar, and J. Gonzalez NOES: None
Attachment A Page 11 of 262
City Council/Successor Agency Minutes of 12/3/2024 Page 2 of 10 ABSENT: None
ABSTAIN: None

4. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Council Member Fuentes.

5. LAND ACKNOWLEDGEMENT
The Land Acknowledgment was led by Council Member Lomelí.

We would like to acknowledge that the land we inhabit today was once known as Tovangaar, the home of the Gabrieleño-Tongva people. We show our respects to the Gabrieleño-Tongva people, as well as all Indigenous people, past, present, and future, and honor their labor as original caretakers of this land. We commit to uplifting the Gabrieleño-Tongva people, invite you to acknowledge the history, and join us in caring for this land.

9. CITY MANAGER REPORT (information only)

6. PRESENTATIONS
A. Recognition to and from Wheels of Hope LA
B. Recognition to Erica Dominguez, Planning Commissioner C. Recognition to Speaker Emeritus Anthony Rendon
D. Proclamation - Purple Heart City
E. Proclamation - International Day of Persons with Disabilities

7. PUBLIC COMMENTS
Carlos thanked the City Council for installing streetlights on his street and expressed concerns about an individual with mental health issues, requested the City to send a social worker or other assistance, also mentioned another individual in an abandoned lot where cars used to be fixed and asked if the City could provide help for this person as well.

Patty Ramirez thanked the City Council for the great work they are doing and mentioned that previous complaints she had made seem to be resulting in progress, commented on working together reporting the damages that happen in the street, thanked Council for the installation of street lights, raised concerns about cars speeding through Atlantic and Cecilia, provided a letter regarding what is taking place on the street, mentioned a car that has been left on the street for three months and her attempts to communicate with City staff.

Jesus Rojas on behalf of the Apartment Association of Greater Los Angeles provided background information on the organization, spoke against the rental registry program

City Council/Successor Agency Minutes of 12/3/2024 Page 3 of 10 and its fee price, suggested a program tailored towards Cudahy's needs and financial resources.

8. CITY COUNCIL COMMENTS / REQUESTS FOR AGENDA ITEMS
Council Member Fuentes wished everyone a happy belated Thanksgiving, shared he was absent at the previous Council Meeting due to attending the NALEO Newly Elected Policy Institute, participated in the City's tree lighting ceremony at Clara Park, thanked staff, and requested a proclamation for Small Business Week next year in May.

Council Member C. Gonzalez acknowledged the loss of life and mentioned she wants to see more action where the community can sense a change, thanked staff for putting on the Christmas tree lighting, requested immediate support from a gang task force from the Sheriff's Department, state Senator Lena Gonzalez, County Supervisor, and Congressman Robert Garcia to help find funds to bring a task force to target gangs, suggested making public heat maps showing where gangs are located in the City, identifying what gangs exist in the City, and educating the public on what the different tagging means and which parts of the community are impacted, inquired about what information could be released to get help from the public in identifying people, recommended having a safety summit to educate parents on what to look for, also mentioned there are things the community should have zero tolerance for, that a "no" from the Sheriff's Department in taking action on some of these issues is unacceptable, and that more should be done beyond Sheriff Luna to show the City is addressing these concerns seriously.

Council Member Lomelí mentioned her attendance at the tree lighting event, thanked staff, the importance of humanizing people and the youth, stating that no one deserves what happened, as it was a life lost, and mentioned that the gang offered a sense of belonging, acknowledged the preventative work being done but emphasized the need for more, mentioned another incident earlier in the year, called for an action plan, noticed that something always happens during the holidays and extra efforts may be needed, need all hands on deck.

Vice Mayor Alcantar acknowledged what happened and commented on the next steps, stating it is important to meet with Sheriff Luna and the Captain as she feels there is a disconnect, shared her experience with a call to the Sheriff's office and pointed out that over five million dollars are being paid for the contract, which could be used for kids programming or hiring more youth in the community, stated she chose to support the contract for public safety not to ignore calls and to strategize so deputies aren’t going into situations by themselves, also mentioned that tagging should be covered up immediately to prevent things from escalating and gave direction to staff to pursue gang intervention work.

Mayor J. Gonzalez echoed his colleagues' comments and recommended establishing a joint task force working with the schools, mentioned hiring an expert consultant who understands the situation and not depend on any agency that cannot be directly

City Council/Successor Agency Minutes of 12/3/2024 Page 4 of 10 overseen, suggested having that expert lead an effort through an Ad Hoc committee that includes the Sheriff's Department, schools, and others involved in addressing the issue.

10. REPORTS REGARDING AD HOC, ADVISORY, STANDING OR OTHER COMMITTEE MEETINGS – NONE

11. WAIVER OF FULL READING OF RESOLUTIONS AND ORDINANCES Motion: Vice Mayor Alcantar motioned to waive full reading of resolutions and ordinances, seconded by Council Member Lomelí. Motion passed 5-0 by the following roll call vote:

AYES: Fuentes, C. Gonzalez, Lomelí, Alcantar, and J. Gonzalez NOES: None
ABSENT: None
ABSTAIN: None

12. CONSENT CALENDAR
A. Consideration to Review and Approve the Draft Minutes of October 15, 2024, and November 19, 2024, for the Regular Meeting of the City Council and the Joint Meeting of the City of Cudahy as Successor Agency and Housing Successor Agency to the Cudahy Development Commission
Presented by the City Clerk
Recommendation: The City Council is requested to review and approve the City Council / Successor Agency Draft Minutes for October 15, 2024, and November 19, 2024.

B. Consideration to Approve Construction Contingency and Contract Change Order to the Contract Services Agreement with Elecnor-Belco Electric, for the Salt Lake Avenue Pedestrian Safety Improvement Project – CIP Project No. TRE-001 Presented by the Public Works Director
Recommendation: The City Council is requested to approve 10% Construction Contingency in the amount of $20,018 and Contract Change Order (CCO) No. 1 in the amount of $28,000 to the existing Contract Services Agreement in the amount of $200,182 with Elecnor-Belco Electric, Inc., for the Salt Lake Avenue Pedestrian Safety Improvement Project, City Project No. TRE-001, funded by the Highway Safety Improvement Grant Program Cycle 7 (HSIP-7).

Motion: Vice Mayor Alcantar motioned to approve the Consent Calendar items, seconded by Council Member C. Gonzalez. Motion passed 5-0 by the following roll call vote:

City Council/Successor Agency Minutes of 12/3/2024 Page 5 of 10 AYES: Fuentes, C. Gonzalez, Lomelí, Alcantar, and J. Gonzalez NOES: None
ABSENT: None
ABSTAIN: None

13. PUBLIC HEARING
A. A Public Hearing to Consider and Adopt Resolution No. 24-38 of the City of Cudahy City Council to Approving Changes to the Community Development Block Grant (“CDBG”) Fiscal Year 2024-25 to Cancel CDBG Program 602616-24, Entitled, “Camp Commerce” and Reprogram this Project’s Unspent Balance in the amount of $10,000 and Unallocated Funds in the amount of $39,113 into Two (2) Upcoming FY 2024-25 CDBG Eligible Programs, Youth Services and Food Distribution Recommendation: City staff recommends the City Council take the following action(s):

Open the public hearing, receive public comment, and presentation from City staff; and Adopt Resolution No. 24-38 approving the cancellation of the CDBG Program 602616- 24, entitled, “Camp Commerce” and reprogram this Project’s Unspent Balance in the amount of $10,000 and Unallocated Funds in the amount of $39,113 into two (2) Upcoming FY 2024-25 CDBG Eligible Programs, Youth Services and Food Distribution; and Authorize the City Manager, or his or her designee, to make adjustments to the CDBG project applications and CDBG agreements, due to programmatic interpretations by the Los Angeles County Community Development Authority (“LACDA”).

At 7:26 p.m. Mayor J. Gonzalez opened public comment, there being none, closed public comment.

Motion: Council Member Lomelí motioned to open the public hearing, receive public comment, and presentation from City staff, adopt Resolution No. 24-38 approving the cancellation of the CDBG Program 602616-24, entitled, “Camp Commerce” and reprogram this Project’s Unspent Balance in the amount of $10,000 and Unallocated Funds in the amount of $39,113 into two (2) Upcoming FY 2024-25 CDBG Eligible Programs, Youth Services and Food Distribution; and Authorize the City Manager, or his or her designee, to make adjustments to the CDBG project applications and CDBG agreements, due to programmatic interpretations by the Los Angeles County Community Development Authority (“LACDA”), seconded by Council Member C. Gonzalez. Motion passed 5-0 by the following roll call vote:

AYES: Fuentes, C. Gonzalez, Lomelí, Alcantar, and J. Gonzalez NOES: None
ABSENT: None
ABSTAIN: None
B. A Public Hearing to Adopt Resolution No. 24-39, Establishing New Registration Fees for Rental Units Pursuant to Cudahy Municipal Code (“CMC”) Chapter 5.13, Rent Stabilization

City Council/Successor Agency Minutes of 12/3/2024 Page 6 of 10 Recommendation: City staff is recommending the City Council take the following action(s): Open the public hearing and receive public comment; and Adopt Resolution No. 24-39 establishing an annual rental registration fee of $126.00 and rental unit exemption fee of $91.00, subject to late fees and annual consumer price index (“CPI”) adjustments, based on the recommendation of the RSO and TPO cost of services study.

At 7:43 p.m. Mayor J. Gonzalez opened public comment, there being none, closed public comment.

Motion: Vice Mayor Alcantar motioned to open the public hearing and receive public comment, adopt Resolution No. 24-39 establishing an annual rental registration fee of $126.00 and rental unit exemption fee of $91.00, subject to late fees and annual consumer price index (“CPI”) adjustments, based on the recommendation of the RSO and TPO cost of services study, seconded by Council Member Lomelí. Motion passed 5-0 by the following roll call vote:

AYES: Fuentes, C. Gonzalez, Lomelí, Alcantar, and J. Gonzalez NOES: None
ABSENT: None
ABSTAIN: J. Gonzalez

14. BUSINESS SESSION
At 7:44 p.m., Mayor J. Gonzalez recused himself from item 14A pursuant to SB1439.

A. Republic Services Proposal for SB1383 Amendment Implementation and Compliance
Presented by the Assistant to the City Manager
Recommendation: The City Council is requested to select either Proposal 2 or Proposal 3 submitted by Republic Services for the implementation and compliance of SB1383.

Motion: Council Member Lomelí motioned to select Proposal 2 for the implementation and compliance of SB1383, seconded by Council Member Fuentes. Motion passed 4-0- 1 by the following roll call vote:

AYES: Fuentes, C. Gonzalez, Lomelí, and Alcantar
NOES: None
ABSENT: J. Gonzalez (recused)
ABSTAIN: None
At 8:02 p.m., Mayor J. Gonzalez returned to the Chambers B. Approval of Professional Services Agreement to Provide Design Phase Engineering Services for the Cudahy Citywide Signal Improvements – HSIP Cycle 11 Project – Project No. TRE-009

City Council/Successor Agency Minutes of 12/3/2024 Page 7 of 10 Presented by the Public Works Director
Recommendation: The City Council is requested to award a Professional Services Agreement (PSA) to Kimley-Horn and Associates, Inc. (Kimley-Horn) to provide design phase engineering services for the preparation of PS&E Plan, Specifications, and Estimates) for the Cudahy Citywide Signal Improvements – HSIP Cycle 11 Project – Project No. TRE-009 (Project), not to exceed $108,092.01.

Motion: Vice Mayor Alcantar motioned to award a Professional Services Agreement (PSA) to Kimley-Horn and Associates, Inc. (Kimley-Horn) to provide design phase engineering services for the preparation of PS&E Plan, Specifications, and Estimates) for the Cudahy Citywide Signal Improvements – HSIP Cycle 11 Project – Project No. TRE009 (Project), not to exceed $108,092.01, seconded by Council Member Lomelí. Motion passed 5-0 by the following roll call vote:

AYES: Fuentes, C. Gonzalez, Lomelí, Alcantar, and J. Gonzalez NOES: None
ABSENT: None
ABSTAIN: None
C. Consideration to adopt Resolution No. 24-40 and Award a Contract Services Agreement to Byrom-Davey, Inc., a California Corporation, for Lugo Park Soccer Field Rehabilitation Project – CIP Project No. PRE-005
Presented by the Public Works Director
Recommendation: The City Council is requested to Adopt Resolution No. 24-40 appropriating $212,373 of Development Impact Fee Parks funding and $277,627 of Measure A funding, for a total amount of $490,000 amending the Lugo Park Soccer Field Rehabilitation Project (Project) – CIP Project No. PRE-005, project funding; Approve Plans and Specifications for the Lugo Park Soccer Field Rehabilitation Project – CIP Project No. PRE-005; Award a Contract Services Agreement to Byrom-Davey, Inc. for the Project in the amount of $972,958.20 for the Lugo Park Soccer Field Rehabilitation Project; and Approve 10% construction contingency for unforeseen conditions in the amount of $97,296 for utilization by the Public Works Director or designee for potential Construction Change Orders (CCO) and 5% construction oversight in the amount of $48,600.00.

Motion: Council Member Lomelí motioned to adopt Resolution No. 24-40 appropriating $212,373 of Development Impact Fee Parks funding and $277,627 of Measure A funding, for a total amount of $490,000 amending the Lugo Park Soccer Field Rehabilitation Project (Project) – CIP Project No. PRE-005, project funding; Approve Plans and Specifications for the Lugo Park Soccer Field Rehabilitation Project – CIP Project No.

PRE-005, award a Contract Services Agreement to Byrom-Davey, Inc. for the Project in the amount of $972,958.20 for the Lugo Park Soccer Field Rehabilitation Project; and

City Council/Successor Agency Minutes of 12/3/2024 Page 8 of 10 Approve 10% construction contingency for unforeseen conditions in the amount of $97,296 for utilization by the Public Works Director or designee for potential Construction Change Orders (CCO) and 5% construction oversight in the amount of $48,600.00, seconded by Vice Mayor Alcantar. Motion passed 5-0 by the following roll call vote:

AYES: Fuentes, C. Gonzalez, Lomelí, Alcantar, and J. Gonzalez NOES: None
ABSENT: None
ABSTAIN: None
D. Consideration to Award a Contract Services Agreement to American Pride Builders Co., for the ADA Door Replacement Project Clara Park Community Center: 4835 Clara St, Cudahy CA 90201 – CIP Project No. CIF-007, CBDG Project Number:
602661-23
Presented by the Public Works Director
Recommendation: The City Council is requested to Approve Plans and Specifications for the ADA Door Installation Project Clara Park Community Center: 4835 Clara St, Cudahy CA 90201 – CIP Project No. CIF-007, CDBG Project Number: 602661-23 (Project); Award a Contract Services Agreement to American Pride Builders Co. for the Project in the amount of $ 137,500.00; and Approve 10% construction contingency for unforeseen conditions in the amount of $13,750.00 for utilization by the Public Works Director or designee for potential Construction Change Orders (CCO) and 5% construction management oversight in the amount of $7,000.00.

Motion: Council Member Lomelí motioned to approve Plans and Specifications for the ADA Door Installation Project Clara Park Community Center: 4835 Clara St, Cudahy CA 90201 – CIP Project No. CIF-007, CDBG Project Number: 602661-23 (Project), Award a Contract Services Agreement to American Pride Builders Co. for the Project in the amount of $ 137,500.00; and Approve 10% construction contingency for unforeseen conditions in the amount of $13,750.00 for utilization by the Public Works Director or designee for potential Construction Change Orders (CCO) and 5% construction management oversight in the amount of $7,000.00, seconded by Council Member C. Gonzalez. Motion passed 5-0 by the following roll call vote:

AYES: Fuentes, C. Gonzalez, Lomelí, Alcantar, and J. Gonzalez NOES: None
ABSENT: None
ABSTAIN: None
E. Approval of Professional Services Agreement with Absolute International Security, Inc. (AIS) for Professional Security Guard Services
Presented by the Assistant to the City Manager

City Council/Successor Agency Minutes of 12/3/2024 Page 9 of 10 Recommendation: The City Council is requested to award a Professional Services Agreement (PSA) to Absolute International Security, Inc. (AIS) for professional security guard services in a not-to-exceed fiscal year sum of $118,000.

Motion: Council Member Fuentes motioned to table item until the next regular City Council Meeting, seconded by Vice Mayor Alcantar. Motion passed 5-0 by the following roll call vote:

AYES: Fuentes, C. Gonzalez, Lomelí, and Alcantar
NOES: None
ABSENT: None
ABSTAIN: J. Gonzalez
F. Adoption of Resolution No. 24-41, expressing the City of Cudahy’s commitment to ensuring access to safe and clean drinking water for all residents Presented by the Assistant to the City Manager
Recommendation: The City Council is requested to adopt Resolution No. 24-41, expressing the City of Cudahy’s “City” commitment to ensuring access to safe and clean drinking water for all residents.

Motion: Mayor J. Gonzalez motioned to adopt Resolution No. 24-41, expressing the City of Cudahy’s “City” commitment to ensuring access to safe and clean drinking water for all residents and change language on the Resolution from “providers” to “mutuals’, seconded by Vice Mayor Alcantar. Motion passed 5-0 by the following roll call vote:

AYES: Fuentes, C. Gonzalez, Lomelí, Alcantar, and J. Gonzalez NOES: None
ABSENT: None
ABSTAIN: None
G. Immigration Support Information Initiative Presentation Presented by the Assistant to the City Manager
Recommendation: The City Council is requested to receive and file presentation on the development of the City of Cudahy’s Immigration Support Information Initiative to support the immigrant community, particularly the undocumented population.

Motion: Vice Mayor Alcantar motioned to receive and file presentation on the development of the City of Cudahy’s Immigration Support Information Initiative to support the immigrant community, particularly the undocumented population, seconded by Council Member Lomelí. Motion passed 5-0 by the following roll call vote:

City Council/Successor Agency Minutes of 12/3/2024 Page 10 of 10 AYES: Fuentes, C. Gonzalez, Lomelí, Alcantar, and J. Gonzalez NOES: None
ABSENT: None
ABSTAIN: None
H. Annual Emergency Preparedness Update
Presented by the Assistant to the City Manager
Recommendation: The City Council is requested receive and file the annual Emergency Preparedness Update, which highlights the City of Cudahy's ongoing efforts and initiatives related to emergency preparedness, including training, planning, and collaborations with regional and federal partners.

Motion: Council Member C. Gonzalez motioned to receive and file the annual Emergency Preparedness Update, which highlights the City of Cudahy's ongoing efforts and initiatives related to emergency preparedness, including training, planning, and collaborations with regional and federal partners, seconded by Council Member Fuentes.

Motion passed 5-0 by the following roll call vote:

AYES: Fuentes, C. Gonzalez, Lomelí, Alcantar, and J. Gonzalez NOES: None
ABSENT: None
ABSTAIN: None

15. COUNCIL DISCUSSION – NONE

16. CLOSED SESSION – NONE

17. CLOSED SESSION ANNOUNCEMENT – NONE

18. ADJOURNMENT
The City Council / Agency meeting adjourned at 8:54 p.m.

Jose R. Gonzalez
Mayor
ATTEST:

Richard Iglesias
City Clerk

Attachment
B

“Serving The People” "Sirviendo A La Comunidad"
Staff Report
01/21/2025 Page 1 of 2

STAFF REPORT
Date: January 21, 2025
To: Honorable Mayor/Chair and City Council/Agency Members From: Alfonso Noyola, City Manager/Executive Director
By: Joshua Calhoun, Finance Director
Subject: Approval of the Local Agency Investment Fund (LAIF) for the Month of December 2024

RECOMMENDATION
The City Council is requested to approve the Local Agency Investment Fund (LAIF) Report for the month of December 2024 in the amount of $11,156,151.16.

BACKGROUND

1. In 1955, the Pooled Money Investment Account (PMIA) started. LAIF became part of the PMIA. The oversight is provided by the Pooled Money Investment Board (PMIB) and an inhouse Investment Committee. The PMIB members consist of the State Treasurer, Director of Finance, and State Controller.

2. In 1977, LAIF was created as a voluntary program by Section 16429.1 et seq. of the California Government Code. The program was intended to be used as an investment alternative for California's local governments and special districts. The LAIF continues today under State Treasurer, Fiona Ma's administration.

3. On December 1, 2024, the balance in LAIF was $11,156,151.16 (See Attachment).

4. On December 31, 2024, the balance in LAIF was $11,156,151.16 (See Attachment).

ANALYSIS
The voluntary program offers local agencies the opportunity to participate in a major portfolio, which invests hundreds of millions of dollars, using the investment expertise of the State Item Number
14B

“Serving The People” "Sirviendo A La Comunidad"
Staff Report
01/21/2025 Page 2 of 2
Treasurer’s Office investment staff at no additional cost to the taxpayer.

All securities are purchased under the authority of Government Code Section 16430 and 16480.4. The State Treasurer's Office takes delivery of all securities purchased on a delivery versus payment basis using a third-party custodian.

Cudahy Municipal Code Section 3.04.080 indicates, "Except as otherwise provided, no warrant shall be drawn or evidence of indebtedness issued unless there shall be at the time sufficient money in the treasury legally applicable to the payment of the same."

CONCLUSION
Once the City Council approves the current LAIF, this balance may be relied upon when determining if the City has sufficient funds available to pay demands and payroll as required by Cudahy Municipal Code Section 3.04.080.

STRATEGIC PLAN CORRELATION
Strategy #2. Provide regular updates to the City Council and community about the city’s finances.

FINANCIAL IMPACT
None

ATTACHMENT
A. Local Agency Investment Fund (LAIF) Balance.

LOCAL AGENCY INVESTMENT FUND
General Account - City #98-19-225
Beginning Balance as of December 01, 2024 $11,156,151.16 LAIF Interest earned 0
Transfer from City operating account 0
Transfer to City operating account 0
Ending Balance as of December 31, 2024 $11,156,151.16
Attachment A Page 25 of 262
Blank Page

“Serving The People” "Sirviendo A La Comunidad"
Staff Report
01/21//2025 Page 1 of 2

STAFF REPORT
Date: January 21, 2025
To: Honorable Mayor/Chair and City Council/Agency Members From: Alfonso Noyola, City Manager/Executive Director
By: Joshua Calhoun, Finance Director
Subject: Approval of the City Demands and Payroll Including Statement of Investment for the Month of December 2024

RECOMMENDATION
The City Council is requested to approve the Demands and Payroll in the amount of $1,601,849.17 including the Statement of Investments for the month of December 2024.

BACKGROUND

1. On December 13, 1993, Ordinance 476 was adopted and codified as Cudahy Municipal Code Section 3.04.080 indicating, "Except as otherwise provided, no warrant shall be drawn, or evidence of indebtedness issued unless there shall be at the time sufficient money in the treasury legally applicable to the payment of the same."

2. During the month, the Finance Department completed the following demands and payroll:

A/P Demands $1,065,834.69
Payroll $536,014.48
Total: $1,601,849.17
Attachment A
Attachment B
Item Number
14C

“Serving The People” "Sirviendo A La Comunidad"
Staff Report
01/21//2025 Page 2 of 2

ANALYSIS
The Check Register Report (Attachment A), Payroll Warrants including payroll taxes and insurance premiums (Attachment B), Statement of Investment (Attachment C) indicate that the cash and investment balance was sufficient for disbursements for the month, a summary of cash received and disbursed by month during Fiscal Year (FY) 2024-25 (Attachment D), and a summary of cash received and disbursed by month during FY 2023-24 (Attachment E).

Cudahy Municipal Code Section 3.04.070 indicates, "Budgeted demands paid by warrant prior to audit by the council shall be presented to the council for ratification and approval..."

CONCLUSION
The Finance Director certifies the accuracy and availability of funds for payment. A Demand/Warrant Register has been submitted to the City Council for approval in accordance with Cudahy Municipal Code Section 3.04.070.

STRATEGIC PLAN CORRELATION
Goal (Financial Stability and Transparency)
• Provide regular updates to the City Council and Community about the City’s finances.

FINANCIAL IMPACT
The Statement of Investments Report (Attachment C) indicates that there are sufficient funds within the City’s holdings to meet the City’s cash flow requirements.

ATTACHMENTS
A. Accounts Payable Check Register Report.

B. Payroll Warrants including payroll taxes and insurance premiums.

C. Statement of Investments
D. Summary of Cash Receipt / Disbursement by Month FY 2024-25 E. Summary of Cash Receipt / Disbursement by Month FY 2023-24 F. Credit Card Payment Detail

1/6/2025 4:04:58 PM Page 1 of 4
Check Report
City of Cudahy, CA By Check Number
Date Range: 12/01/2024 - 12/31/2024
Vendor Number Vendor Name Payment Date Discount Amount Payment Type Payment Amount Number Bank Code: WF Checking-WF Checking
**Void** 12/04/2024 Regular 0.00 0.00 56238
**Void** 12/04/2024 Regular 0.00 0.00 56239
**Void** 12/04/2024 Regular 0.00 0.00 56240
**Void** 12/04/2024 Regular 0.00 0.00 56241
**Void** 12/04/2024 Regular 0.00 0.00 56242
**Void** 12/04/2024 Regular 0.00 0.00 56243
**Void** 12/04/2024 Regular 0.00 0.00 56244
**Void** 12/04/2024 Regular 0.00 0.00 56245
**Void** 12/04/2024 Regular 0.00 0.00 56246
**Void** 12/04/2024 Regular 0.00 0.00 56247
**Void** 12/04/2024 Regular 0.00 0.00 56248
**Void** 12/04/2024 Regular 0.00 0.00 56249
**Void** 12/04/2024 Regular 0.00 0.00 56250
**Void** 12/04/2024 Regular 0.00 0.00 56251
2378-3 8330 ATLANTIC AVE INC 12/04/2024 Regular 0.00 804.98 56252 10603 ADVANCED IMAGING SOLUTIONS 12/04/2024 Regular 0.00 206.54 56253 7995 AMERICAN CITY PEST & TERMITE 12/04/2024 Regular 0.00 457.00 56254 10896 Anaheim Lawnmower Shop 12/04/2024 Regular 0.00 4,588.79 56255 10595 ARAMSCO INC 12/04/2024 Regular 0.00 1,275.24 56256 10413 CALIFORNIA CONTRACT CITIES ASSOCIATION 12/04/2024 Regular 0.00 4,300.00 56257 10520 CASTRO DISCOUNT TIRES INC 12/04/2024 Regular 0.00 30.00 56258 0136 CITY OF SOUTH GATE 12/04/2024 Regular 0.00 75.00 56259 10711 CLEARNETWORK, INC. 12/04/2024 Regular 0.00 395.84 56260 2289 CONSOLIDATED DISPOSAL INC. 12/04/2024 Regular 0.00 3,030.47 56261 1206-2 COUNTY OF LOS ANGELES DEPT. OF PUBLIC WO 12/04/2024 Regular 0.00 2,009.30 56262 10872 CSLM Construction, Inc. 12/04/2024 Regular 0.00 1,290.00 56263 11090 Dakota Unger 12/04/2024 Regular 0.00 135.00 56264 0097-3 EMPLOYMENT DEVELOPMENT DEPT. 12/04/2024 Regular 0.00 1,016.00 56265 10581 FIESTA TAXI COOPERATIVE INC. 12/04/2024 Regular 0.00 10,456.61 56266 6087 FIRST AMERICAN DATA TREE 12/04/2024 Regular 0.00 99.00 56267 10876 Foster & Foster, Inc. 12/04/2024 Regular 0.00 11,250.00 56268 10804 Gabriel Cervantes 12/04/2024 Regular 0.00 1,100.00 56269 10916 Isai Roblero 12/04/2024 Regular 0.00 1,000.00 56270 11101 Issa Arroyo 12/04/2024 Regular 0.00 700.00 56271
11077 Jose de Santiago 12/04/2024 Regular 0.00 1,114.20 56272 11106 Juan Contreras. 12/04/2024 Regular 0.00 25.00 56273 10583 LUCERO'S IRON WORK 12/04/2024 Regular 0.00 4,650.00 56274 11105 Lucy Rodriguez 12/04/2024 Regular 0.00 25.00 56275 11092 Marcus Wimberly 12/04/2024 Regular 0.00 360.00 56276 11104 Maribel Diaz 12/04/2024 Regular 0.00 200.00 56277 10736 NHA ADVISORS, LLC. 12/04/2024 Regular 0.00 14,756.25 56278 10201-1 OLIVAREZ MADRUGA LAW ORGANIZATION, LLP 12/04/2024 Regular 0.00 1,107.50 56279 11103 Plan It Software LLC. 12/04/2024 Regular 0.00 517.50 56280 10570 RADAR ENVIRONMENTAL 12/04/2024 Regular 0.00 995.90 56281 9737 REGIONAL TAP SERVICE CENTER 12/04/2024 Regular 0.00 67.20 56282 2802 SAM'S CLUB 12/04/2024 Regular 0.00 5,467.42 56283
11102 Sandra Lora 12/04/2024 Regular 0.00 100.00 56284
5958 STATE WATER RESOURCES CONTROL BOARD 12/04/2024 Regular 0.00 10,920.00 56285 10827 Teslarian, Inc. 12/04/2024 Regular 0.00 3,200.00 56286 11061 The Huntington National Bank 12/04/2024 Regular 0.00 125,934.22 56287 8066 TYLER TECHNOLOGIES INC. 12/04/2024 Regular 0.00 230.25 56288 10881 Valerie Unger 12/04/2024 Regular 0.00 315.00 56289 9951 WILLDAN 12/04/2024 Regular 0.00 8,367.00 56290
10805 World Trip, Inc. 12/04/2024 Regular 0.00 1,275.00 56291 Attachment A Page 29 of 262
Check Report Date Range: 12/01/2024 - 12/31/2024
1/6/2025 4:04:58 PM Page 2 of 4
Vendor Number Vendor Name Payment Date Discount Amount Payment Type Payment Amount Number 10735 YUNEX, LLC. 12/04/2024 Regular 0.00 39,808.67 56292 11036 ACC Business 12/18/2024 Regular 0.00 439.83 56293 10603 ADVANCED IMAGING SOLUTIONS 12/18/2024 Regular 0.00 140.82 56294 10393 ALEX'S AUTO SMOG 12/18/2024 Regular 0.00 120.00 56295 11107 Alma Sotelo 12/18/2024 Regular 0.00 100.00 56296
10595 ARAMSCO INC 12/18/2024 Regular 0.00 1,876.99 56297 0057-4 AT & T 12/18/2024 Regular 0.00 373.66 56298
9966 AT & T LONG DISTANCE SERVICE 12/18/2024 Regular 0.00 48.90 56299 8021 AT & T MOBILITY 12/18/2024 Regular 0.00 2,368.16 56300 10490 CHARTER COMMUNICATIONS 12/18/2024 Regular 0.00 975.00 56301 10065-2 CHIARA GIGLIOTTI 12/18/2024 Regular 0.00 3,447.00 56302 11110 Cine.Angel Photo 12/18/2024 Regular 0.00 500.00 56303 0136 CITY OF SOUTH GATE 12/18/2024 Regular 0.00 75.00 56304 0186 COUNTY OF LOS ANGELES DEPT OF ANIMAL CA 12/18/2024 Regular 0.00 14,069.23 56305 10872 CSLM Construction, Inc. 12/18/2024 Regular 0.00 1,290.00 56306 5552 CUDAHY AUTO CENTER INC 12/18/2024 Regular 0.00 169.41 56307 11090 Dakota Unger 12/18/2024 Regular 0.00 360.00 56308 10162 DE SANTIAGO SUSANA 12/18/2024 Regular 0.00 1,979.70 56309 10616 EDISON FIRE EXTINGUISHER CO IN DBA: EDISON 12/18/2024 Regular 0.00 349.50 56310 11073 Emilia DiPiazza 12/18/2024 Regular 0.00 3,400.00 56311 10485 ENTERPRISE FM TRUST 12/18/2024 Regular 0.00 5,219.87 56312 8179 GENERAL CODE, LLC 12/18/2024 Regular 0.00 3,022.00 56313 11077 Jose de Santiago 12/18/2024 Regular 0.00 1,114.20 56314 0197 LA COUNTY SHERIFF'S DEPARTMENT 12/18/2024 Regular 0.00 395,442.61 56315 10868 Language Network, Inc. 12/18/2024 Regular 0.00 2,760.50 56316 10598 LEAF 12/18/2024 Regular 0.00 1,004.03 56317
11108 Los Angeles Regional Ineroperable Communicat 12/18/2024 Regular 0.00 160.00 56318 10655 LUIS AGUILAR 12/18/2024 Regular 0.00 420.00 56319 11092 Marcus Wimberly 12/18/2024 Regular 0.00 630.00 56320 7014 NATIONWIDE ENVIRONMENTAL SERVICES INC 12/18/2024 Regular 0.00 10,584.65 56321 10201-1 OLIVAREZ MADRUGA LAW ORGANIZATION, LLP 12/18/2024 Regular 0.00 105,510.50 56322 0095 PETTY CASH 12/18/2024 Regular 0.00 513.72 56323
10610 PHILIP PRIDEMORE 12/18/2024 Regular 0.00 1,000.00 56324 10919 Polytechnique Environmental, Inc. 12/18/2024 Regular 0.00 14,676.98 56325 9737 REGIONAL TAP SERVICE CENTER 12/18/2024 Regular 0.00 14.40 56326 10727 SANCHEZ AWARDS Victor Javier Sanchez 12/18/2024 Regular 0.00 851.68 56327 10483-1 SOUTHERN CALIFORNIA NEWS GROUP 12/18/2024 Regular 0.00 1,731.36 56328 5958 STATE WATER RESOURCES CONTROL BOARD 12/18/2024 Regular 0.00 3,945.00 56329 10467 STEAMX, LLC SIGNAL HILL 12/18/2024 Regular 0.00 1,262.26 56330 10853 SWA Group, Inc. 12/18/2024 Regular 0.00 9,020.60 56331 10827 Teslarian, Inc. 12/18/2024 Regular 0.00 3,200.00 56332 9991 TRANSTECH ENGINEERING, INC. 12/18/2024 Regular 0.00 71,086.25 56333 10745 TRAVELERS 12/18/2024 Regular 0.00 180.00 56334
8066 TYLER TECHNOLOGIES INC. 12/18/2024 Regular 0.00 3,045.00 56335 10401 WILLDAN FINANCIAL SERVICES 12/18/2024 Regular 0.00 2,772.00 56336 10735 YUNEX, LLC. 12/18/2024 Regular 0.00 43,127.49 56337 10640 AMAZON CAPITAL SERVICES, INC. 12/04/2024 Bank Draft 0.00 3,000.93 DFT0000715 10053 HAULAWAY STORAGE CONTAINERS 12/04/2024 Bank Draft 0.00 89.04 DFT0000716 0070 SOUTHERN CALIFORNIA EDISON 12/04/2024 Bank Draft 0.00 794.30 DFT0000717 0070 SOUTHERN CALIFORNIA EDISON 12/04/2024 Bank Draft 0.00 2,769.56 DFT0000718 0070 SOUTHERN CALIFORNIA EDISON 12/04/2024 Bank Draft 0.00 1,126.21 DFT0000719 10729 WELLSONE COMMERCIAL CARD 12/09/2024 Bank Draft 0.00 27,006.66 DFT0000720 10485 ENTERPRISE FM TRUST 12/12/2024 Bank Draft 0.00 5,362.64 DFT0000729 10490 CHARTER COMMUNICATIONS 12/18/2024 Bank Draft 0.00 229.98 DFT0000732 10490 CHARTER COMMUNICATIONS 12/18/2024 Bank Draft 0.00 229.98 DFT0000733 10490 CHARTER COMMUNICATIONS 12/18/2024 Bank Draft 0.00 319.98 DFT0000734 10053 HAULAWAY STORAGE CONTAINERS 12/18/2024 Bank Draft 0.00 89.04 DFT0000735 2724 HOME DEPOT CREDIT SERVICES 12/18/2024 Bank Draft 0.00 6,973.39 DFT0000736 2802 SAM'S CLUB 12/18/2024 Bank Draft 0.00 600.55 DFT0000737 0071-1 SO CAL GAS 12/18/2024 Bank Draft 0.00 39.07 DFT0000738 0071-1 SO CAL GAS 12/18/2024 Bank Draft 0.00 -39.07 DFT0000738

Check Report Date Range: 12/01/2024 - 12/31/2024
1/6/2025 4:04:58 PM Page 3 of 4
Vendor Number Vendor Name Payment Date Discount Amount Payment Type Payment Amount Number 0071-1 SO CAL GAS 12/18/2024 Bank Draft 0.00 63.03 DFT0000739 0071-1 SO CAL GAS 12/18/2024 Bank Draft 0.00 237.82 DFT0000740 0070 SOUTHERN CALIFORNIA EDISON 12/18/2024 Bank Draft 0.00 45.93 DFT0000741 0070 SOUTHERN CALIFORNIA EDISON 12/18/2024 Bank Draft 0.00 2,627.17 DFT0000742 0070 SOUTHERN CALIFORNIA EDISON 12/18/2024 Bank Draft 0.00 14,608.96 DFT0000743 0070 SOUTHERN CALIFORNIA EDISON 12/18/2024 Bank Draft 0.00 -14,608.96 DFT0000743 0070 SOUTHERN CALIFORNIA EDISON 12/18/2024 Bank Draft 0.00 27.26 DFT0000744 10643 STATE COMPENSATION INS FUND 12/18/2024 Bank Draft 0.00 16,054.72 DFT0000745 0071-1 SO CAL GAS 12/19/2024 Bank Draft 0.00 707.93 DFT0000748 0070 SOUTHERN CALIFORNIA EDISON 12/19/2024 Bank Draft 0.00 14,848.75 DFT0000749 0070 SOUTHERN CALIFORNIA EDISON 12/19/2024 Bank Draft 0.00 1,500.05 DFT0000750 0070 SOUTHERN CALIFORNIA EDISON 12/19/2024 Bank Draft 0.00 3,095.59 DFT0000751 Regular Checks
Manual Checks
Voided Checks
Discount
Payment
Payment Type Count
Bank Code WF Checking Summary
Bank Drafts
EFT's
86 0
14 27
0 0.00

0.00 0.00

0.00 0.00
127 0.00
Payment
978,034.18

0.00 0.00
87,800.51

0.00 1,065,834.69
Payable
Count
130
0 0
26 0
156

Check Report Date Range: 12/01/2024 - 12/31/2024
1/6/2025 4:04:58 PM Page 4 of 4
All Bank Codes Check Summary
Payment Type Discount
Payment
Count Payment
Payable
Count
Regular Checks
Manual Checks
Voided Checks
Bank Drafts
EFT's
86 0
14 27
0 0.00

0.00 0.00

0.00 0.00
127 0.00
978,034.18

0.00 0.00
87,800.51

0.00 1,065,834.69
130
0 0
26 0
156
Fund Name Amount Period
Fund Summary
998 Pooled Cash 12/2024 1,065,834.69
1,065,834.69

12/13/24 12/19/24 12/31/24 Total
Payroll Check Issued 207.60 - - 207.60
(a) Direct Deposits 123,950.74 70,323.04 129,072.79 323,346.57 (b) ICMA & Union Dues 5,410.00 - 2,705.00 8,115.00
(c) CalPERS Ret & 457 Plan 24,528.10 - 24,400.31 48,928.41 (d) Payroll taxes 28,692.89 11,732.46 30,031.34 70,456.69 (e) CalPERS Medical 73,028.00 - - 73,028.00
(f) Medical 2,542.65 4,192.06 5,197.50 11,932.21
Total Amount 258,359.98 86,247.56 191,406.94 536,014.48 (a) Employees / Council Members / Commissioners
(b) ICMA & Union Dues
(c) CalPERS Retirement & 457 Plan
(d) Federal / State payroll taxes and unemployment
(e) CalPERS Medical (active and retired)
(f) Medical Insurance - Active and Retired employees

CITY OF CUDAHY
Payroll - including payroll taxes and insurance premiums:

Attachment B Page 33 of 262
Type Issuer Amount % of Total
Deposit - 4588 Wells Fargo 3,933,629.67 20.74%
Successor Agency - 0688 Wells Fargo 3,084,069.03 16.26% Checking - 7128 Wells Fargo 673,464.81 3.55%
Payroll - 4570 Wells Fargo 108,718.61 0.57%
Savings - 4752 Wells Fargo 152.72 0.00%
Money Market Account Bank of New York (BNY) (a) 12,182.77 0.06% Pooled Savings State Local Agency 11,156,151.16 58.81%
Investment Fund (LAIF)
Total 18,968,368.77 100.00%
Pursuant to California Government Code Section 53646(b), I hereby certify that all investments held by the Authority are in compliance with state law and the agency's Statement of Investment Policy, and that there are sufficient funds within the agency's investment holdings to meet the Authority's cash flow requirements for the next six (6) months.

Respectfully submitted,
Joshua Calhoun
Joshua Calhoun
Finance Director

CITY OF CUDAHY
Statement of Investments
December 31, 2024
Attachment C Page 34 of 262
Month
Receipts Disbursement
July 2024 $ 1,537,864.08 $ 3,641,311.49 (a)
August 2024 995,697.04 1,290,369.09
September 2024 913,424.92 3,023,210.74 (b)
October 2024 1,231,618.97 2,197,219.69 (c)
November 2024 210,291.23 842,168.80
December 2024 808,306.87 1,601,849.17
January 2025
February 2025
March 2025
April 2025
May 2025
June 2025
Total: $ 5,697,203.11 12,596,128.98
Note (a) - City liab. & workers comp insurance, and PERS unfunded pension liab.

Note (b) - Includes $1.7M Debt Service payment
Note (c) - Includes Aug & Sep Sherrif invoice payments
Month
Cash Receipts Disbursement
July 2024 $ 963,942.68 $ 2,896,825.05 (1)
August 2024 678,458.46 1,051,901.91
September 2024 545,421.73 998,247.07
October 2024 765,107.19 1,845,289.62 (2)
November 2024 133,653.35 647,782.87
December 2024 571,683.73 1,210,748.09
January 2025
February 2025
March 2025
April 2025
May 2025
June 2025
Total: $ 3,658,267.14 $ 8,650,794.61
Note (1) - City liab. & workers comp insurance, and PERS unfunded pension liab.

Note (2) - Includes Aug & Sep Sherrif invoice payments
All Funds
General Fund
City of Cudahy
Summary of Cash Receipt/Disbursement by Month - FY 2024-2025 Attachment D Page 35 of 262
Month
Receipts Disbursement
July 2023 $ 1,698,263.55 $ 2,043,188.80 (a)
August 2023 1,570,904.87 3,148,357.16 (b)
September 2023 1,125,855.21 1,693,834.27
October 2023 1,259,614.45 848,009.43
November 2023 1,061,252.71 1,514,985.44
December 2023 770,294.89 1,120,942.42
January 2024 3,400,198.28 (c) 2,880,738.20 (d)
February 2024 1,189,496.91 1,382,500.65
March 2024 846,479.31 1,818,213.76 (e)
April 2024 1,764,923.25 1,399,214.40
May 2024 2,994,309.17 (f) 1,090,538.63
June 2024 1,114,305.30 1,906,535.54
Total: $ 18,795,897.90 20,847,058.70
Note (a) - City liab. & workers comp insurance, and PERS unfunded pension liab.

Note (b) - Includes $1,893,444 to Siemens Industries
Note (c) - Includes $1,786,952 in Motor Vehicle In-lieu fees Note (d) - Includes $1,141,928 paid to LA County Sheriff - 3 invoices Note (e) - Includes $158,445 paid to National Auto Fleet - vehicle Note (f) - Includes $1,786,952 in Motor Vehicle In-lieu receipt Month
Cash Receipts Disbursement
July 2023 $ 913,951.26 $ 1,604,912.00 (1)
August 2023 1,069,666.17 2,784,467.93 (2)
September 2023 797,120.38 1,543,754.51
October 2023 759,320.17 710,945.37
November 2023 632,862.51 1,244,543.67
December 2023 526,471.62 679,307.44
January 2024 2,671,465.70 (3) 2,421,667.28 (4)
February 2024 740,080.40 1,107,319.93
March 2024 563,376.03 1,261,506.18
April 2024 1,187,411.21 1,169,015.14
May 2024 2,640,204.13 (5) 567,429.42
June 2024 872,580.09 1,373,988.45
Total: $ 13,374,509.67 $ 16,468,857.32
Note (1) - City liab. & workers comp insurance, and PERS unfunded pension liab.

Note (2) - Includes $1,893,444 to Siemens Industries
Note (3) - Includes $1,786,952 in Motor Vehicle In-lieu fees Note (4) - Includes $158,445 paid to National Auto Fleet - vehicle Note (4) - Includes $1,786,952 in Motor Vehicle In-lieu receipt.

All Funds
General Fund
City of Cudahy
Summary of Cash Receipt/Disbursement by Month - FY 2023-2024 Attachment E Page 36 of 262
Supplier - Name Transaction Transaction - Business Purpose Smart And Final 319 5,460.07 Turkeys purchase for Novembers food distribution.

Hilton Hotels 2,934.01 MMASC Annual Conference- Hotel Reservation Uci Div Cont Ed 2,175.00 Assistant City Clerk courses to draft contracts.

Southwes 1,849.75 Housing Conference - Roundtrip Flight for L. Cardenas Feverup* Litebrite Wor 1,342.38 Community Excursion - Lite Brite.

Event Fee 2025 Housing 1,300.00 Housing Conference for (2) staff Vivint Inc/Us 997.45 Alarm company (repairs)
Embassy Suites Downey 873.49 Conference room for management training sessions Msft * E0300uebec 697.20 Microsoft 365 Monthly Subscription Adobe *adobe 668.54 Adobe Acrobat Monthly Subscription
Amazon Mktpl 648.89 Decorations for Holiday and tree lighting event.

Oreilly 2959 580.95 Auto parts for Code Enf unit 2,3,4, and 5 Full Source, Llc 497.79 Uniforms
Staples Inc 460.54 Office Supplies
Honeybaked Ham Store # 457.24 Employee Recognition
Albertsons #0158 365.55 Trophies and Awards
24hourwristbands.Com 350.00 Food Distribution
Sq *agua Y Salud 340.94 Office Supplies
World Famous Grill 328.02 Office Supplies
Msft * E0300uebf9 326.27 Subscription
Dominos 8112 305.12 Training and Education
Otc Brands 297.41 Special Event
The Home Depot #6627 272.45 Special Event
Mimis Cafe (Downey Ca #1 271.76 Training and Education
Autozone #5371 255.90 Vehicle Maintenance
Amzn Mktp Us 248.06 Special Event
Crypto.Com Arena La Live 200.00 Excursions
Icma Online 200.00 Professional Membership
Elpolloloco 193.40 Employee Recognition
Norms - Downey 170.11 Travel and meetings
Wm Supercenter #3180 158.99 Employee Recognition
Business.Apple.Com 140.53 Subscription
Costco Whse #0685 115.43 Office Supplies
Samsclub.Com 110.51 Office Supplies
Starbucks 800-782-7282 105.55 Training and Education
Ornament Shop 101.89 Special Projects
Habit South Gate #87 101.18 Travel and meetings
Amtrak .Com 98.00 Travel and meetings
Amtrak Mobil 98.00 Travel and meetings
Sams Club #6613 90.73 Office Supplies
Remotepc 818-275-5909 80.00 Subscription
Hilton Barra Acros 76.60 Travel and meetings
Cudahy 74.95 Vehicle Maintenance
Grubhub*dunkin 74.10 Training and Education
South Gate - Cafishgrill 64.45 Travel and meetings
Bestbuy.Com 00009944 55.11 Recreation Supplies
Petco 2137 53.45 Special Event
Soup Shop 47.93 Travel and meetings
U-Haul At Atlantic Ave 47.62 Food Distribution
Amazon Mark* D92936we3 44.09 Street Maintenance supplies Starbucks Store 67663 Travel and meetings 44.00
Glorias Cocina Mexicana 40.00 Travel and meetings
Zoom.Us 888-799-9666 Contractual 40.00
Cudahy Sinclair Gasoline 36.09
Msft * E0300ue820 Subscription 28.00
Staples 00113860 Recreation Supplies 27.49
La Princessa Bakery Cafe Meeting/Conference Supplies 24.00 Bargain World #1 Training and Education 23.51
Target 00034066 Training and Education 22.30
Players Health Recreation Supplies 20.00
Ferguson Ent 1456 Park Maintenance & Supplies 15.23
Dollar Tree Employee Recognition 9.58
Msft * E0300uebfa Subscription 8.00

CITY OF CUDAHY
Credit Card Payment Detail
Nov 01, 2024 to Nov 30, 2024 paid on Dec 09, 2024

Attachment F Page 37 of 262

ATTACHMENT F
Supplier - Name Transaction Transaction - Business Purpose Wal-Mart #3180 Travel and meetings 6.97
Hp *instant Ink Office Supplies 5.50
Sprouts Farmers Mar Travel and meetings 5.19
Sams Club #6626 Special Event (156.60)
27,006.66

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Staff Report
01/21/2025 Page 1 of 3

STAFF REPORT
Date: January 21, 2025
To: Honorable Chair and Agency Members
From: Alfonso Noyola, City Manager/Executive Director
By: Joshua Calhoun, Finance Director/Finance Officer
Subject: Consideration to Adopt Resolution No. SA 25-01 for Approval of the Administrative Budget for Fiscal Period of July 1, 2025 to June 30, 2026

RECOMMENDATION
The Successor Agency is requested to adopt a proposed Resolution No. SA 25-01 approving the Administrative Budget for the Recognized Obligation Payment Schedule (ROPS) for the fiscal period of July 1, 2025 to June 30, 2026 (ROPS 25-26).

BACKGROUND

1. On January 17, 2012, the City Council adopted Resolution No. 12-04 electing to serve as the Successor Agency to the Cudahy Community Development Commission.

2. On February 1, 2012, the former Cudahy Community Redevelopment Agency was dissolved pursuant to ABX1 26 (Stats 2011-12, 1st Ex Sess., Chapter 5), and collectively the AB X1 26, as amended by subsequent legislation, shall be referred to as the “State Redevelopment Dissolution Law.”

3. On February 1, 2012, the State Redevelopment Dissolution Law requires the Successor Agency to prepare a proposed "Administrative Budget" for the period concurrent with the six-month fiscal period of each ROPS.

4. On June 27, 2012, Assembly Bill 1484 was signed into law to augment and expand the State Redevelopment Dissolution Law by clarifying agencies’ roles in the dissolution process and changing the six-month ROPS submission schedule to an annual reporting process, beginning July 1, 2016.

Item Number
14D

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Staff Report
01/21/2025 Page 2 of 3

5. On September 23, 2015, Governor Brown signed Senate Bill 107 into law to augment and expand the State Redevelopment Dissolution Law by imposing additional responsibilities on successor agencies and setting milestones for redevelopment dissolution.

6. On January 21, 2025, Successor Agency prepared and approved the Administrative Budget for the fiscal period July 1, 2025 through June 20, 2026.

ANALYSIS
The approved Administrative Budget, which pertains to the Successor Agency’s “Administrative Cost Allowance,” will be listed on ROPS 25-26 and accordingly will be considered an enforceable obligation. Only those enforceable obligations listed and approved on the ROPS may be paid by funds from the Redevelopment Property Tax Trust Fund (RPTTF).

Administrative Cost Allowance is paid to the Successor Agency by the State from property tax revenues allocated by the Los Angeles County Auditor-Controller. This allowance has a limit of up to a maximum of 3% of the property tax allocated for enforceable obligations, but not less than $250,000 for any fiscal year, unless the Oversight Board reduces this amount. Given the reduced activities of the Successor Agency, the amount of staff time for staff administration is being reduced. The allowance sought by the Successor Agency for such allowance through this proposed administrative budget is $150,220.

Successor Agency staff have prepared and now submit to the Successor Agency the Administrative Budget for the period of July 1, 2025 to June 30, 2026 (Exhibit A to Resolution).

Pursuant to Section 34177(j), an Administrative Budget is to include all of the following: (a) estimated amounts of the Successor Agency’s administrative costs for the upcoming twelvemonth fiscal period (July 1, 2025 to June 30, 2026); (b) the proposed sources of payment for the costs identified in (a); and (c) proposals for arrangements for administrative and operations services provided by the City to the Successor Agency.

Under the State Redevelopment Dissolution Law, each ROPS includes a line item for the Successor Agency’s Administrative Budget for the applicable period and requires that the ROPS 25-26 be approved by the Successor Agency and Oversight Board and submitted to the State Department of Finance (DOF) as a part of the ROPS 25-26 by February 1, 2025. The ROPS is subject to review by the Oversight Board, DOF, and the County-Auditor Controller. If the DOF approves the ROPS enforceable obligations, the County-Auditor Controller allocates and remits funds from the RPTTF to be used for payments of the enforceable obligations listed on the ROPS.

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Staff Report
01/21/2025 Page 3 of 3

CONCLUSION
If approved, the Administrative Budget will be submitted to the Oversight Board for review and approval at a regular meeting on January 22, 2025. Under Section 4177(k), the Successor Agency would then provide to the County of Los Angeles Auditor-Controller (County) the administrative cost estimates from the approved Administrative Budget that are to be paid from property tax revenues deposited into the Redevelopment Property Tax Trust Fund for such fiscal period.

STRATEGIC PLAN CORRELATION
Goal (Financial Stability and Transparency)
• Provide regular updates to the City Council and Community about the City’s finances.

FINANCIAL IMPACT
The Successor Agency will be reimbursed up to $150,220 for expenses and costs related to the dissolution of the former Cudahy Community Development Commission for the fiscal period of July 1, 2025 to June 30, 2026, if approved by the Oversight Board, and the State Department of Finance.

ATTACHMENT
A. Draft Proposed Resolution No. SA 25-01 with Exhibit “A” – Cudahy Successor Agency Administrative Budget

RESOLUTION NO. SA 25-01

A RESOLUTION OF THE SUCCESSOR AGENCY TO THE FORMER

CUDAHY REDEVELOPMENT AGENCY (CUDAHY COMMUNITY

DEVELOPMENT COMMISSION) APPROVING AN ADMINISTRATIVE
BUDGET FOR THE PERIOD JULY 1, 2025 THROUGH JUNE 30, 2026 PURSUANT TO HEALTH AND SAFETY CODE SECTION 34177 AND

TAKING CERTAIN ACTIONS IN CONNECTION THEREWITH
A. Pursuant to Part 1.85 of the Community Redevelopment Law (commencing with Health and Safety Code Section 34170) (“Part 1.85”), the Successor Agency to the former Cudahy Redevelopment Agency (Cudahy Community Development Commission) (“Successor Agency”) is required to undertake a number of actions related to winding down the affairs of the former Cudahy Redevelopment Agency (the “Former Redevelopment Agency”) pursuant to Health and Safety Code Section 34177(h).

B. In connection with the administration and operations of the Successor Agency, the Successor Agency is and will be utilizing the staff, facilities, and other resources of the City of Cudahy. The City Manager of the City serves as Executive Director of the Successor Agency, the Finance Director serves as Finance Officer of the Successor Agency, and the City Clerk or Deputy City Clerk serves as Secretary to the Successor Agency. Planning, finance, engineering, public works, legal and other City departments devote and are expected to devote substantial time with respect to the administration and operations of the Successor Agency, including gathering information relating to the Former Redevelopment Agency’s enforceable obligations, conferring with public officials representing governmental agencies, and undertaking other activities in connection with administration and operations of the Successor Agency.

C. Pursuant to Health and Safety Code Section 34171(d)(1)(F), contracts or agreements necessary for the administration or operation of the Successor Agency are enforceable obligations and pursuant to Health and Safety Code Sections 34178(a) and 34180(h), and the Successor Agency may enter into agreements with the City with the approval of the Oversight Board for the Successor Agency (the “Oversight Board”).

D. Pursuant to Health and Safety Code Section 34177(j), the Successor Agency is required to prepare a proposed administrative budget for each fiscal period and submit each proposed administrative budget to the Oversight Board for its approval. Each proposed administrative budget shall include all of the following: (1) estimated amounts for Successor Agency administrative costs for the applicable fiscal period; (2) proposed sources of payment for the costs identified in (1); and (3) proposals for arrangements for administrative and operations services provided by the City or another entity.

E. Pursuant to Health and Safety Code Section 34177(k), the Successor Agency is required to provide administrative cost estimates, from its approved administrative budget that are to be paid from property tax revenues deposited in the Redevelopment Property Tax Trust Fund, to the County Auditor-Controller for each applicable twelve-month fiscal period.

F. Staff of the Successor Agency seeks the Successor Agency’s approval of the administrative budget for the period beginning on July 1, 2025 through June 30, 2026 (“Administrative Budget 25-26”), in the form attached to this Resolution as Exhibit “A”, and the Successor Agency’s authorization to submit the approved Administrative Budget 25-26 to the Oversight Board for its approval and to forward the information required by Health and Safety Code 34177(k) to the County Auditor-Controller.

G. Administrative Budget 25-26 has been prepared in accordance with Health and Safety Code Section 34177(j) and is consistent with the requirements of the Health and Safety Attachment A Page 42 of 262
Resolution No. SA 25-01

Code and other applicable law. The proposed source of payment of the costs set forth in Administrative Budget 25-26 is property taxes from the Redevelopment Property Tax Trust Fund of Los Angeles County established for the Successor Agency.

H. The activity proposed for approval by this Resolution is not a “project” for purposes of the California Environmental Quality Act (‘CEQA”), as that term is defined by CEQA Guidelines Section 15378, because the activity approved by this Resolution is an organizational or administrative activity that will not result in a direct or indirect physical change in the environment, in accordance with CEQA Section 15378(b)(5) of the Guidelines.

NOW, THEREFORE, THE SUCCESSOR AGENCY TO THE CUDAHY

REDEVELOPMENT AGENCY (CUDAHY COMMUNITY DEVELOPMENT COMMISSION) DOES HEREBY RESOLVE, FIND, DETERMINE AND ORDER AS FOLLOWS:

Section 1. The above recitals are true and correct and are a substantive part of this Resolution.

Section 2. This Resolution is adopted pursuant to the provisions of Part 1.85.

Section 3. The Successor Agency hereby approves the proposed administrative budget for the twelve-month fiscal period commencing July 1, 2025 and ending June 30, 2026 attached hereto as Exhibit “A” and incorporated herein by reference.

Section 4. The officers and staff of the Successor Agency are hereby authorized and directed, jointly and severally, to do any and all things which they may deem necessary or advisable to effectuate this Resolution, and any such actions previously taken by such officers and staff are hereby ratified and confirmed.

Section 5. The Successor Agency hereby determines that the activity approved by this Resolution is not a “project” for purposes of CEQA, as that term is defined by CEQA Guidelines Section 15378, because the activity approved by this Resolution is an organizational or administrative activity that will not result in a direct or indirect physical change in the environment, per Section 15378(b)(5) of the CEQA Guidelines.

PASSED, APPROVED, AND ADOPTED this 21st day of January 2025. ________________________________
Elizabeth Alcantar Loza
Chair of the Successor Agency to the
Former Cudahy Redevelopment Agency
ATTEST:
_____________________________
Richard Iglesias
Secretary to the Successor Agency

Resolution No. SA 25-01

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS:

CITY OF CUDAHY )
I, Richard Iglesias, Secretary to the Successor Agency, do hereby certify that the above and foregoing Resolution No. SA 25-01 was passed, approved, and adopted by the Successor Agency to the former Cudahy Community Development Commission/Redevelopment Agency of the City of Cudahy, signed by the Chair and attested by the Secretary to the Successor Agency at a meeting of said Successor held on this 21st day of January 2025, and that said Resolution was adopted by the following votes to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

Richard Iglesias
Secretary to the Successor Agency

Resolution No. SA 25-01

Exhibit “A”

SUCCESSOR AGENCY TO THE CUDAHY COMMUNITY DEVELOPMENT COMMISSION

ANNUAL & SIX-MONTH ADMINISTRATIVE BUDGETS
FISCAL YEAR 2025-26
Expense Category
Annual
FY 2025-26
Jul - Dec
2025
Jan - Jun
2026 Description
Personnel Expenses
City Manager / Executive
Director $ 23,400 $ 11,700 $ 11,700
City Manager's Office - Provide
direction to staff and consultants as
needed; reviews and oversees SA
administration.

Finance Director / Finance
Officer $ 18,720 $ 9,360 $ 9,360
Finance Department - Process
payment of enforceable obligations;
maintain documentation of SA
records; coordinate with consultants
to answer questions and provide
documentation as needed for
reporting preparation and as
requested by the Oversight board,
County Auditor-Controller, and
DOF; administration and
implementation of SA wind-down
activities.

Senior Accountant and/or
Accounting Technician $ 20,200 $ 10,100 $ 10,100
Community Development
Director $ 18,540 $ 9,270 $ 9,270
Community Development Office – is
a liaison between the City and the
various entities
Building Inspector $ 9,360 $ 4,680 $ 4,680 The Building Inspector inspects the various properties
Personnel Costs Subtotal $ 90,220 $ 45,110 $ 45,110
Service expenses
Legal Services $ 60,000 $ 30,000 $ 30,000
Provide general legal services as
needed, review staff reports and
resolutions, other legal services as
needed.

Service Costs Subtotal $ 60,000 $ 30,000 $ 30,000
Total Expenses $ 150,220 $ 75,110 $ 75,110
Source of Repayment is Redevelopment Property Tax Trust Fund (RPTTF)

Blank Page

“Serving The People” "Sirviendo A La Comunidad"
Staff Report
01/21/2025 Page 1 of 3

STAFF REPORT
Date: January 21, 2025
To: Honorable Chair and Agency Members
From: Alfonso Noyola, City Manager/Executive Director
By: Joshua Calhoun, Finance Director
Subject: Approval of the Recognized Obligation Payment Schedule for the Fiscal Period of July 1, 2025 to June 30 2026 (ROPS 25-26)

RECOMMENDATION
The Successor Agency is requested to approve the Recognized Obligation Payment Schedule (ROPS) for the fiscal period of July 1, 2025 to June 30, 2026 (ROPS 25-26), for submission to the City of Cudahy Oversight Board.

BACKGROUND

1. On January 17, 2012, the City Council adopted Resolution No. 12-04 electing to serve as the Successor Agency to the Cudahy Community Development Commission.

2. On February 1, 2012, the former Cudahy Community Redevelopment Agency was dissolved pursuant to ABX1 26 (Stats 2011-12, 1st Ex Sess., Chapter 5), and collectively the AB X1 26, as amended by subsequent legislation, shall be referred to as the “State Redevelopment Dissolution Law.”

3. On February 1, 2012, the Successor Agency to the Community Development Commission of the City began performing its functions under the Dissolution Law, Parts 1.8 and 1.85 of the Health and Safety Code, as amended by Assembly Bill 1484 and other subsequent legislation (together, the “Dissolution Law”), to administer the enforceable obligations and otherwise unwind the former Agency’s affairs, all subject to the review and approval by the Oversight Board.

4. On June 27, 2012, Assembly Bill 1484 was signed into law to augment and expand the State Redevelopment Dissolution Law by clarifying agencies’ roles in the dissolution process and Item Number
14E

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Staff Report
01/21/2025 Page 2 of 3

changing the six-month ROPS submission schedule to an annual reporting process, beginning July 1, 2016.

5. On September 23, 2015, Governor Brown signed Senate Bill 107 into law to augment and expand the State Redevelopment Dissolution Law by imposing additional responsibilities on successor agencies and setting milestones for redevelopment dissolution, including a deadline of February 1, 2017 for the submission of future ROPS to State Department of Finance (DOF).

6. On January 21, 2025, the Successor Agency, pursuant to the Dissolution Law, approved ROPS 23-24 as it had passed all prior ROPS and thereafter submitted to DOF and approved.

Pursuant to Section 34 171(g) of Part 1.85, ROPS means the document setting forth the minimum payment amounts, and due dates of payments required by enforceable obligations for each fiscal period as provided in subdivision (m) of Section 34177.

ANALYSIS
AB X1 26 requires the Successor Agency to prepare a ROPS for each twelve-month period, beginning with the twelve-month period July 1, 2025 to June 30, 2026. The ROPS serves as an invoice between the Successor Agency and the Los Angeles County Auditor-Controller (County) and dictates how much former property tax increment will be released by the County for the twelve-month period to the Successor Agency to pay for enforceable obligations. Only payments listed on the ROPS may be made by the Successor Agency during this period.

Currently, the Successor Agency’s sources of revenue available to pay for costs listed on the approved ROPS include Former Tax Increment, now held by the County in the Redevelopment Property Tax Trust Fund (RPTTF).

Attachment A reflects the twelve-month estimated payment obligations for the Successor Agency in the online format provided by the DOF. The ROPS 25-26 will be submitted to the County, State Controller's Office (SCO) and the DOF by February 1, 2026, the statutory deadline.

CONCLUSION
It is recommended that the Successor Agency approve ROPS 25-26 for submission to the Oversight Board meeting on January 22, 2025, to ensure a timely submission of ROPS 25-26. If the Successor Agency does not approve the ROPS 25-26 and accordingly would not allow the Oversight Board the opportunity to approve the ROPS 25-26 and submit ROPS 25-26 by February 1, 2025 the Successor Agency will be fined a civil penalty of $10,000 per day for the

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Staff Report
01/21/2025 Page 3 of 3

failure to submit on time.

STRATEGIC PLAN CORRELATION
Goal (Financial Stability and Transparency)
• Provide regular updates to the City Council and Community about the City’s finances.

FINANCIAL IMPACT
The Proposed Recognized Obligation Payment Schedule (ROPS 25-26) will approve the RPTTF to provide the funds necessary to make payments on the debt.

ATTACHMENT
A. Proposed Recognized Obligation Payment Schedule (ROPS 25-26) – ROPS Detail

Successor Agency: Cudahy
County: Los Angeles
A Enforceable Obligations Funded as Follows (B+C+D) $ 745,000 - $ 745,000 B Bond Proceeds - - -
C Reserve Balance 745,000 - 745,000
D Other Funds - - -
E Redevelopment Property Tax Trust Fund (RPTTF) (F+G) $ 996,954 993,413 1,990,367 F RPTTF 921,844 918,303 1,840,147
G Administrative RPTTF 75,110 75,110 150,220
H Current Period Enforceable Obligations (A+E) $ 1,741,954 993,413 $ 2,735,367 Certification of Oversight Board Chairman:

Name Title
/s/ Signature Date
Pursuant to Section 34177 (o) of the Health and Safety
code, I hereby certify that the above is a true and
accurate Recognized Obligation Payment Schedule for
the above named successor agency.
25-26A Total
(July -
December)
25-26B Total
(January -
June)
ROPS 25-26
Total
Recognized Obligations Payment Schedule (ROPS 25-26) - Summary Filed for the July 01, 2025 through June 30, 2026 Period.

Current Period Requested Funding for Enforceable
Obligations (ROPS Detail)
Attachment A Page 50 of 262

CITY OF CUDAHY
Recognized Obligation Payument Schedule (ROPS 23-24) - ROPS Detail July 1, 2023 through June 30, 2024

B C D E F G H I J K L M N O P Q R S T U V W
Bond
Proceeds
Reserve
Balance
Other
Funds
RPTTF Admin
RPTTF
Bond
Proceeds
Reserve
Balance
Other
Funds
RPTTF Admin
RPTTF
$10,659,470 $2,738,367 $0 $745,000 $0 $921,844 $75,110 $1,741,954 $0 $0 $0 $921,303 $75,110 $996,413 8 Fiscal Agent Fees Fees 10/28/
1999
10/01/2027 The Bank of
New York
Mellon Trust
Company,
N.A.

Annual fiscal
agent fees for
bonds issues
and Arbitrage
Calculations
Citywide 18,000 N $1,800 - - - - - 0 - - - 1,800 - $1,800 9 Bond Disclosure
Services
Fees 06/27/
2011
03/31/2027 HdL Coren &
Cone
Annual
continuing
disclosure for
bond issues
Citywide 14,700 N $1,200 - - - - - 0 - - - 1,200 - $1,200 24 Successor
Agency Admin.

Cost
Admin Costs 07/01/
2022
06/30/2023 Various Greater of 3% or
$250,000
Citywide 150,220 N 150,220 - - - - 75,110 75,110 - - - - 75,110 75,110 52 Taxable Tax
Allocation
Refunding Bonds,
Series 2018
Bonds Issued
After 12/31/10
09/25/
2018
10/01/2027 The Bank of
New York
Mellon Trust
Company,
N.A.

Refunding of
multiple bond
issues
Citywide 9,135,188 N 2,585,147 - 745,000 - 921,844 - 1,666,844 - - - 918,303 - 918,303 25-26A
Total
ROPS 25-26 (Jan - Jun)
25-26B
Total
Fund Sources Fund Sources
ROPS 25-26 (Jul - Dec)
Description Project
Area
Total
Outstanding
Obligation
Retired ROPS 25-
26 Total Payee Item #
Project Name Obligation
Type
Agreement
Execution
Date
Agreement
Termination
Date

A B C D E F G H
Reserve Balance Other Funds RPTTF
Bonds issued
on or before
12/31/10
Bonds issued on
or after 01/01/11
Prior ROPS RPTTF
and Reserve
Balances retained
for future period(s)
Rent, grants,
interest, etc.

Non-Admin
and Admin
1 Beginning Available Cash Balance (Actual) RPTTF amount should exclude "A" period distribution amount.
2,205 2,535,965 745,000 147,600 0
2 Revenue/Income (Actual)
RPTTF amount should tie to the ROPS total distribution from the County Auditor-Controller
0 0 0 0 2,121,796
3 Expenditures for ROPS Enforceable Obligations (Actual) 0 0 0 0 1,959,459 4 Retention of Available Cash Balance (Actual) RPTTF amount retained should only include the amounts distributed as reserve for future period(s)
2,205 2,535,965 745,000 147,600 162,337
5 ROPS RPTTF Prior Period Adjustment
RPTTF amount should tie to the Agency's ROPS PPA form submitted to the CAC
0 6 Ending Actual Available Cash Balance (06/30) C to F = (1 + 2 - 3 - 4), G = (1 + 2 - 3 - 4 - 5)
$- $- $- $- $-
No entry required
Cudahy
Recognized Obligations Payment Schedule (ROPS 25-26) - Report of Cash Balances July 01, 2025 through June 30, 2026 (Report Amounts in Whole Dollars) Pursuant to Health and Safety Code section 34177 (l), Redevelopment Property Tax Trust Fund (RPTTF) may be listed as a source of payment on the ROPS, but only to the extent no other funding source is available or when payment from property tax revenues is required by an enforceable obligation.

ROPS 25-26 Cash Balances (07/01/25 - 06/30/26
Fund Sources
Comments
Bond Proceeds

Cudahy
Recognized Obligation Payment Schedule (ROPS 25-26) - Notes July 01, 2025 through June 30, 2026.

Item # Notes/Comments
8 9
13 17
18 23
24 52
53 54
55 56

ESTIMATED ANNUAL ADMINISTRATIVE EXPENSES
City Staff Costs Funding Source
City Manager 23,400 RPTTF Administrative Allowance
Finance Director 18,720 RPTTF Administrative Allowance
Sr Accountant and Accounting Technician 20,020 RPTTF Administrative Allowance Comm Development Director 18,720 RPTTF Administrative Allowance Building Inspector 9,360 RPTTF Administrative Allowance 90,220
External Consultants
Attorney Costs 60,000 RPTTF Administrative Allowance
Estimated Annual Total 150,220
RPTTF - Redevelopment Property Tax Trust Fund
Exhibit "B"

CUDAHY SUCCESSOR AGENCY ADMINISTRATIVE BUDGET COVERING
July 01, 2025 through June 30, 2026

“Serving The People” "Sirviendo A La Comunidad"
Staff Report
1/21/2025 Page 1 of 6

STAFF REPORT
Date: January 21, 2025
To: Honorable Mayor and City Council Members
From: Alfonso Noyola, City Manager
By: Cecilia Madrigal-Gonzalez, Senior Planner
Subject: A Public Hearing to Consider and Adopt Resolution No. 25-01 of the City Council Approving the Community Development Block Grant (“CDBG”) Programs and Funding for Fiscal Year 2025-2026

RECOMMENDATION
The City Council is requested to take the following action(s):

1. Open the public hearing, receive testimony and presentation of the proposed programs; and

2. Authorize City staff to release a Request for Proposal to seek qualified consulting firms for the provisions of CDBG Housing Rehabilitation Services and CDBG Administration for Fiscal Year 2025-26; and

3. Authorize City staff to release a Request for Proposal to seek qualified organizations/providers to administer the Youth Crime Prevention Program for Fiscal Year 2025-26; and

4. Adopt Resolution No. 25-01 (Attachment A) approving the CDBG programs and budget for Fiscal Year 2025-2026; and

5. Authorize the City Manager to execute all contracts and agreements with the Los Angeles County Development Authority, CDBG Program subrecipients, and CDBG Program consultants.

BACKGROUND
The City of Cudahy (“City”) receives federal CDBG funds from the U.S. Department of Housing Item Number
13A

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and Urban Development (“HUD”) as administered by the Los Angeles County Development Authority (“LACDA”). The funds must be used to meet national objectives to develop viable communities and to serve low- and moderate-income populations. Use of these funds also requires compliance with statutory requirements including financial, environmental review, procurement, construction, eligibility, reporting, and citizen participation. LACDA requires that all planning and budgeting documents for the Fiscal Year (“FY”) 25-26 CDBG program year be submitted in February 2025. The submittals include City Council approval of the planning and budget documents, evidenced by a signed resolution and proof of public participation and noticing of a public hearing.

LACDA has advised the City that for FY 25-26, it should be expected to receive approximately $301,085 in CDBG funding. Additionally, approximately $99,000.00 in previously unspent, unallocated CDBG funds are available for reprogramming into CDBG FY 25-26. The City’s proposed CDBG allocation is a planning estimate only; LACDA will release final appropriations in spring 2025.

On December 17, 2025, the City Council received a presentation from City staff summarizing the recommended projects/programs to be funded in FY 25-26. After review and feedback, the City Council directed City staff to move forward with continuing existing programs such as owner-occupied rehabilitation, business assistance, and code enforcement. Further, direction was given to move forward with drafting a new program with a focus on youth crime prevention.

ANALYSIS
The primary objectives of the CDBG program are to develop urban communities by supporting activities that create or enhance the following focus areas:

1. Decent housing; and

2. A suitable living environment; and

3. Economic opportunities.

The HUD regulations require all CDBG-funded activities to meet one of the three national objectives:

1. Benefit low-and very-low-income persons; or

2. Aid in the prevention or elimination of slums or blight; or

3. Meet other community development needs having urgency or posing a serious and immediate threat to the health or welfare of the community.

The CDBG program requires that a minimum of seventy percent (70%) of the program funds be spent on activities that benefit low and moderate‐income persons. CDBG offers grant recipients

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a high level of flexibility in choosing program activities. Cities are free to select those activities that best meet the needs of their communities, in accordance with the national objectives and other requirements of the CDBG Program. The general rule is that any activity not specifically authorized under the CDBG regulations and statute is ineligible to be assisted with CDBG funds.

TABLE 1 – ELIGIBLE AND INELIGIBLE ACTIVITIES FOR FUNDING Eligible Ineligible
• Land acquisition and disposition; and
• Development of, and improvements to,
public facilities; and
• Street and other infrastructure
improvements; and
• Demolition and clearance of property
improvements; and
• Code Enforcement; and
• Relocation assistance; and
• Public service activities such as health
care, childcare, crime prevention; and
• Housing and commercial rehabilitation;
and
• Economic development activities; and
• Program administration.
• Construction of city halls, county
administrative buildings, or other
facilities in which the legislative, judicial,
or general administrative affairs of the
government are conducted; and
• Purchase of equipment, unless otherwise
required for program purposes; and
• Operating and maintenance expenses;
and
• General government expenses; and
• Political activities.

PROPOSED FY 2025-2026 PROJECTS AND FUNDING ALLOCATION
City staff recommends 2025-2026 CDBG funding for two housing and neighborhood improvement projects, one economic development project, and one public service project. The following is the proposed list of CDBG Program activities and funding recommendations:

PROGRAM YEAR 2025-2025 CDBG ALLOCATION
Estimated New Year Funds: $301,085 Carryover Funds: $99,814 Total Amount Available: $400,899
Project Recommended
Amount
Housing and Neighborhood Improvement Projects
Owner Occupied Housing Rehabilitation* $65,000
Code Enforcement Program $231,000
Economic Development Projects
Business Assistance $49,229
Public Service Projects (15% Maximum Cap)
Youth Crime Prevention $20,000
TOTAL $355,229

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*Includes CDBG Program Management and Administration Costs Housing and Neighborhood Improvement Projects
Owner-Occupied Housing Rehabilitation Program: This continuing program offers grants used for eligible rehabilitation work based on the order of priority: 1) Correction of health and safety deficiencies; 2) Correction of code violations; 3) Repairs and alterations for supportive disabled occupants; 4) Repairs and alterations of energy efficiency; 5) Other eligible general rehabilitation work. This program is in conjunction with the Code Enforcement Program. Grants are provided based on the income eligibility of each applicant, i.e., those households earning 80% or less of median income. Approximately two housing rehabilitation projects are anticipated to be completed with a maximum grant amount for single-family residences is $20,000, a multi-family unit is $30,000 and mobile homes are $15,000. The City contracted with Avant-Garde in 2024 to perform Housing Rehabilitation administration services. The Agreement will expire on June 30, 2025. Staff is requesting that the City Council approve the release of a Request for Proposal in spring 2024 to solicit proposals from qualified firms to provide Housing Rehabilitation administration services.

Code Enforcement Program: This continuing program assists in addressing the decline of residential and neighborhood commercial businesses that have been deemed deteriorating or deteriorated. These residential and neighborhood commercial businesses are in the following designated areas: Census Tracts 5338.06, 5343.01, 5343.02, 5344.03, 5344.04, 5344.05, and 5344.06. The most common violations that will be addressed through this CDBG‐funded activity are prohibited conditions, unsightliness, and building code violations. This will continue to fund the salary and benefits of one full-time community preservation officer, and partially fund one full-time community preservation manager. This program works in conjunction with the Owner-Occupied Rehabilitation Program.

Economic Development Projects
Business Assistance Program: This continuing program assists existing/potential new business owners in retaining, expanding, or opening a business in the City of Cudahy. The program assists business owners with completing applications for permits, and business licenses, and provides technical assistance through one‐to‐one consultations/training to address the needs of the City's business community. Some topics include but are not limited to business expansion plans, how to market your business, how to obtain a business loan, and how to strengthen your business. These services are provided to the business community by city staff, long‐time business owners, and commercial bank personnel. This program funding covers the partial salary and benefits of one (1) full-time employee.

Public Service Projects
Youth Crime Prevention Program: A new program, tentatively titled “Youth Crime Prevention” is proposed. This new program intends to use CDBG funds to partner with a youth crime prevention organization/provider to implement an intervention program targeting youth at risk

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of gang and associated youth violence. This program would focus on gang intervention, violence prevention, and youth development by addressing the risk factors and concerns by offering a wide range of social and economic services such as education activities, mental health treatment, crisis intervention, family counseling, support for rebuilding family relationships, employment services, critical life, and leadership development, financial literacy, job counseling and training, job readiness training, and transportation. This program will assist low- and moderate-income at-risk Cudahy youth. Staff is requesting that the City Council approve the release of a Request for Proposal in spring 2024 to solicit proposals from qualified organizations/providers to create and administer this program through a sub-recipient agreement.

CDBG Program Administration
Participating cities in the LACDA’s Urban County CDBG Program may charge up to 20% administrative costs on a per-project basis to annually implement the CDBG Program.

Administrative costs provide reimbursement for the time spent administering the overall CDBG program, including reporting requirements, preparation of Memoranda of Understanding, subrecipient agreements, LACDA contracts, reviews of federal required documentation, CDBG program monitoring, and general CDBG project management. Previously, the City has relied on consulting services to fully administer the CDBG program, however, due to staffing increases the Housing and Planning Divisions have administered the CDBG programs in 2024-2025. In 2025-2026, a portion of the Owner-Occupied Housing Rehabilitation project budget will be allocated to the general CDBG Administration for City staff to use for technical assistance in administering the continuing and new programs. This allocation lowers the General Fund cost associated with CDBG program technical assistance.

CONCLUSION
City staff recommends the City Council Adopt Resolution No. 25-XX approving the CDBG programs and budget for Fiscal Year 2025-2026.

STRATEGIC PLAN CORRELATION
Goal B, Strategy #3. Pursue grant opportunities as available to help residents with cash assistance or other needs.

Goal C, Strategy #1. Increase the use of residential rehabilitation programs using Community Development Block Grant (CDBG) funds.

FINANCIAL IMPACT
Approved CDBG projects will be reflected in the 2024-2025 City budget adoption process. The recommended amount is based on preliminary planning figures. City staff will make any minor

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adjustments to reflect the actual, final grant allocation awarded to the City.

ATTACHMENTS
A. Draft Resolution No. 25-01
B. Notice of Public Hearing

R0ESOLUTION NO. 25-01

A RESOLUTION OF THE CITY OF CUDAHY CITY COUNCIL APPROVING FISCAL YEAR 2025-2026 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM BUDGET.

WHEREAS, on August 22, 1974, the President of the United States signed into law the Housing and Community Development Act of 1974 (Act); and WHEREAS, the primary goals of Title I of the Act are the development of viable urban communities by providing decent housing and a suitable living environment, and expanding economic opportunities, principally for persons of low and moderate-income; and
WHEREAS, the City of Cudahy (“City”) contracts with the Los Angeles County Development Authority (“LACDA”) for the disbursement of Community Development Block Grant (“CDBG”) funds, through the Los Angeles Urban County CDBG Program; and
WHEREAS, the City of Cudahy will receive an estimated total of $301,050 in Fiscal Year 2025-2026 in CDBG Funds and will commit approximately $64,114 in previous year funds, for a total of $365,229.00 during Fiscal Year 2025-2026; and WHEREAS, the Cudahy City Council has published information regarding eligible activities under the Act and has conducted a public hearing to solicit suggestions from the community for the utilization of these funds.

NOW, THEREFORE, BE IT RESOLVED,
Section 1: The Cudahy City Council hereby allocates the City’s available CDBG funds and carry-over funds for FY 2025-26 for the following purposes:

Owner Occupied Rehabilitation $ 65,000
Business Assistance $ 49,229
Code Enforcement $ 231,000
Youth Crime Prevention $ 20,000
Grand Total $ 365,229
Section 2: The City Council authorizes the City Manager to execute and adjust the Program budget as necessary throughout the Fiscal Year. This includes, but is not limited to, allocating amounts on a per project basis, adjust project budgets, implementing a new or cancelling existing activities, to allow for the timely expenditure of CDBG-funds.

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Cudahy at its regular meeting on this 21st day of January 2025.

Attachment A Page 61 of 262
Resolution No. 25-01

Elizabeth Alcantar Loza
Mayor
ATTEST:

Richard Iglesias
City Clerk

Resolution No. 25-01

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS:

CITY OF CUDAHY )
I, Richard Iglesias, City Clerk of the City of Cudahy, hereby certify that the foregoing Resolution No. 25-01 was passed and adopted by the City Council of the City of Cudahy, signed by the Mayor and attested by the City Clerk at a regular meeting of said Council held on the 21st day of January 2025, and that said Resolution was adopted by the following vote, to-wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

Richard Iglesias
City Clerk

Attachment B

NOTICE OF PUBLIC HEARING

FOR THE

COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM
FOR THE 2025-2026 FISCAL YEAR
NOTICE IS HEREBY GIVEN that the City Council of the City of Cudahy will conduct a Public Hearing to consider the City’s Fiscal Year 2025-2026 Community Development Block Grant (“CDBG”) funding, as further detailed below:

DATE OF HEARING: Tuesday, January 21, 2025
TIME OF HEARING: 6:30 P.M., OR soon thereafter that the matter can be heard.

LOCATION OF HEARING: City of Cudahy – Council Chambers 5240 Santa Ana St, Cudahy CA 90201
HEARING ITEM:

The City of Cudahy received a CDBG allocation of $301,085.00 for FY 2025-2026 from the U.S.

Department of Housing and Urban Development (“HUD”) as administered by the Los Angeles County Development Authority (“LACDA”). CDBG funds are intended for a wide variety of purposes including property acquisition, disposition, housing, public facilities, improvements, public services, commercial/industrial improvements, and other economic development activities. To use CDBG funding for any of these eligible activities, it must be shown that the activity will: 1) Directly benefit low and/or moderate-income persons; 2) Help eliminate slum and blight conditions; or 3) Address an urgent need.

The City of Cudahy City Council will consider approval of its CDBG funds for the below-listed programs/projects. No more than 15 percent, or approximately $45,162 (this amount may change slightly based on the final allocation), can be allocated for public services.

Program Name Proposed Budget
CODE ENFORCEMENT $231,000
BUSINESS ASSISTANCE $49,229

OWNER-OCCUPIED HOUSING

REHABILITATION
$65,000

YOUTH CRIME PREVENTION
(Public Service)
$20,000
TOTAL: $355,229
(Note: FY 25-26 Allocation and $64,114 from
Unallocated Funds)

INVITATION TO BE HEARD
All interested parties are invited to attend the public hearing and express their opinions on the use of the City’s CDBG funds during FY 2025-2026. Further information on the CDBG program may be obtained by contacting Cecilia Madrigal-Gonzalez, Senior Planner at [email protected] or (323)- 773-5143 ext. 252.

Richard Iglesias, City Clerk
Date Posted: January 7, 2025

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STAFF REPORT
Date: January 21, 2025
To: Honorable Mayor/Chair and City Council/Agency Members From: Alfonso Noyola, City Manager/Executive Director
By: Joshua Calhoun, Finance Director
Subject: Receive and File of the FY 2023-24 Audited Financial Statements and Related Reports

RECOMMENDATION
The City Council is requested to receive and file the FY 2023-24 Audited Financial Statements and Related Reports.

BACKGROUND

1. The firm The Pun Group, LLP was engaged on May 23, 2024, to perform an independent audit of the financial statements of the City for FY2023-24.

2. The firm completed the audit process and have issued related reports as of December 31, 2024.

ANALYSIS
The City’s independent auditor, The Pun Group, LLP, have completed their annual audit of the City’s general ledger for the fiscal year ending June 30, 2024. The City’s annual financial statements were prepared by the audit firm in accordance with Generally Accepted Accounting Principals (GAAP), Government Auditing Standards, and comply with other rules and regulations applicable to government entities.

At the conclusion of the audit test work, the audit firm issues an opinion as to the fairness of presentation of the financial position of City activities. The City received an unmodified opinion from the independent auditors. An unmodified opinion is an independent auditor’s judgement that an organization’s financial records and statements are fairly and appropriately presented in accordance with GAAP. In addition, the audit firm is required to issue reports related to internal controls and communicate with the Council on how the audit was planned and conducted. All reports and letters are attached.

Item Number
14A

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The financial statements consists of several parts: the basic financial statements which includes the government-wide financial statements, the fund financial statements, and notes to the financial statements. The required supplementary information provides additional financial information regarding the City not provided in the basic financial statements.

Within the auditor’s Letter of Comments to Management the auditors found no significant deficiencies or material weaknesses in the City’s internal controls.

Additionally, the auditors performed an agreed-upon procedures engagement on the City’s Appropriations Limit Schedule. A copy of the agreed-upon procedures report are attached.

The auditors found no exceptions based on their procedures performed.

CONCLUSION
The City’s financial statements are presented fairly and appropriately in accordance with GAAP.

STRATEGIC PLAN CORRELATION
Goal D (Financial Stability and Transparency), Objectives:

2. Provide regular updates to the City Council and community about the City’s finances.

4. Ensure internal financial controls are in place and regularly monitored.

FINANCIAL IMPACT
There is no fiscal impact associated with this report. Costs associated with the annual audit were included in the fiscal year 2023-24 adopted budget.

ATTACHMENTS
A. Independent Auditors’ Reports and Basic Financial Statements for the Year Ended June 30, 2024
B. Auditor’s Communication with Those Charged with Governance Pursuant to Statement on Auditing Standards 114
C. Independent Accountant’s Report on Agreed-upon Procedures Applied to Appropriations Limit Worksheet for Year Ended June 30, 2024

City of Cudahy
Cudahy, California
Independent Auditors’ Reports and
Basic Financial Statements
For the Year Ended June 30, 2024
Attachment A Page 69 of 262

City of Cudahy
Basic Financial Statements
For the Year Ended June 30, 2024
Table of Contents
Page
Independent Auditors’ Reports on the Audit of the Financial Statements ............................................................. 1 Basic Financial Statements:

Government-Wide Financial Statements:

Statement of Net Position .................................................................................................................................. 9 Statement of Activities .................................................................................................................................... 10 Fund Financial Statements:

Governmental Fund Financial Statements:

Balance Sheet ............................................................................................................................................ 14 Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position .......................................................................... 17 Statement of Revenues, Expenditures, and Changes in Fund Balances ............................................. 18 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities and Changes in Net Position ......................................................................... 20 Fiduciary Fund Financial Statements:

Statement of Fiduciary Net Position ......................................................................................................... 23 Statement of Changes in Fiduciary Net Position ...................................................................................... 24 Notes to the Basic Financial Statements ................................................................................................................ 29 Required Supplementary Information (Unaudited):

Budgetary Comparison Schedules:

General Fund ................................................................................................................................................... 63 Other Grants Special Revenue Fund ............................................................................................................... 64 State Gas Tax Special Revenue Fund .............................................................................................................. 65 Notes to the Budgetary Comparison Schedules ..................................................................................................... 67 Schedule of the City’s Proportionate Share of the Net Pension Liabilities and Related Ratios ........................................................................................................................................... 68 Schedule of Contributions – Pensions .................................................................................................................... 70 Schedule of Changes in Net Other Postemployment Benefits Liability and Related Ratios .......................................................................................................................................... 72 Schedule of Contributions – Other Postemployment Benefits Plan ....................................................................... 74

City of Cudahy
Basic Financial Statements
For the Year Ended June 30, 2024
Table of Contents (Continued)
Page
Supplementary Information:

Nonmajor Governmental Funds:

Combining Balance Sheet ............................................................................................................................... 81 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ....................................... 86 Schedules of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual Nonmajor Special Revenue Funds:

Proposition A Special Revenue Fund ................................................................................................. 91 Proposition C Special Revenue Fund ................................................................................................. 92 Measure R Special Revenue Fund ...................................................................................................... 93 Measure M Special Revenue Fund ..................................................................................................... 94 Measure W Special Revenue Fund ..................................................................................................... 95 AQMD Special Revenue Fund ........................................................................................................... 96 Community Oriented Policing Services (COPS) Special Revenue Fund ........................................... 97 TDA Transportation Development Special Revenue Fund ................................................................ 98 Street Lighting Special Revenue Fund ............................................................................................... 99 Development Impact Fees Special Revenue Fund ........................................................................... 100 Surface Transportation Program Special Revenue Fund .................................................................. 101 CDBG Special Revenue Fund .......................................................................................................... 102 Community Benefit Special Revenue Fund ..................................................................................... 103 Permanent Local Housing Special Revenue Fund ............................................................................ 104 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 ............................................................................................................... 105

200 E. Sandpointe Avenue, Suite 600
Santa Ana, California 92707
INDEPENDENT AUDITORS’ REPORT
To the Honorable Mayor and the Members of the City Council of the City of Cudahy
Cudahy, California
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Cudahy, California (the “City”), as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2024, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America.

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

Emphasis of Matter
As discussed in Note 13 to the financial statements, the beginning governmental net position and fund balances were restated to correct errors. Our opinion is not modified with respect to this matter.

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

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

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

2 Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinions.

Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS and Government Auditing Standards, we:
 exercise professional judgment and maintain professional skepticism throughout the audit.  identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.  evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.  conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

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

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Budgetary Comparison Schedules – General Fund, Major Special Revenue Funds, the Schedule of City’s Proportionate Share of the Net Pension Liability and Related Ratios, the Schedule of Contributions – Pensions, the Schedules of Changes in Net Other Postemployment Benefits Liability and Related Ratios, and the Schedules of Contributions – Other Postemployment Benefits as listed in the table of contents be presented to supplement the basic financial statements.

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

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

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

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying Combining and Individual Fund Financial Statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the Combining and Individual Fund Financial Statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 31, 2024, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Santa Ana, California
December 31, 2024

o
Cudahy
Management’s Discussion and Analysis
4 City of Cudahy
Basic Financial Statements
For the Year Ended June 30, 2024
(This page is intentionally left blank)

BASIC FINANCIAL STATEMENTS
5

(This page is intentionally left blank)
City of Cudahy
Basic Financial Statements
For the Year Ended June 30, 2024
6

GOVERNMENT-WIDE

FINANCIAL STATEMENTS
7

City of Cudahy
Basic Financial Statements
For the Year Ended June 30, 2024
(This page is intentionally left blank)
8

Primary Government
Governmental
Activities
ASSETS
Current assets:

Cash and investments $ 18,983,296
Receivables 2,767,082
Prepaid items 113,514
Total current assets 21,863,892
Noncurrent assets:

Restricted investments in escrow 2,085,814
Notes receivables, net 3,642,586
Land held for resale 940,000
Capital assets:

Capital assets, not being depreciated 18,920,650
Capital assets, being depreciated 18,818,805
Intangible assets, being amortized 127,335
Total capital assets 37,866,790
Total noncurrent assets 44,535,190
Total assets 66,399,082

DEFERRED OUTFLOWS OF RESOURCES
Pension related 2,016,965
Other postemployment benefits related 1,170,482
Total deferred outflows of resources 3,187,447

LIABILITIES
Current liabilities:

Accounts payable 2,310,793
Due to other governments 141,000
Deposits 66,197
Interest payable 117,763
Unearned revenue -
Long-term debt - due within one year 275,776
Total current liabilities 2,911,529
Noncurrent liabilities:

Long-term debt - due in more than one year 5,377,191
Net pension liability 4,549,042
Net other postemployment benefits liability 2,981,921
Total noncurrent liabilities 12,908,154
Total liabilities 15,819,683

DEFERRED INFLOWS OF RESOURCES
Pension related 540,831
Other postemployment benefits related 268,979
Total deferred inflows of resources 809,810

NET POSITION
Net investment in capital assets 34,721,345
Restricted 20,519,179
Unrestricted (2,283,488)
Total net position $ 52,957,036
City of Cudahy
Statement of Net Position
June 30, 2024
See accompanying Notes to the Basic Financial Statements. 9

Net (Expense)
Operating Capital Total Revenue and
Charges for Grants and Grants and Program Change in
Functions/Programs Expenses Services Contributions Contributions Revenues Net Position Governmental activities:

General government 5,008,801 $ 28,399 $ - $ - $ 28,399 $ (4,980,402) $ Public safety 5,046,865 714,967 189,862 - 904,829 (4,142,036) Public works 2,045,804 - 802,162 - 802,162 (1,243,642)
Community services 2,566,218 177,522 2,912,051 - 3,089,573 523,355 Community development 3,408,110 1,978,394 3,081,457 - 5,059,851 1,651,741 Interest and fiscal charges 193,270 - - - - (193,270)
Total primary government $ 2,899,282 18,269,068 $ 6,985,532 $ - $ 9,884,814 $ (8,384,254) General Revenues:

Property Taxes 696,030
Sales and use taxes 2,709,691
Franchise and transfer taxes 789,763
Transient occupancy taxes 53,224
Business license taxes 294,922
Motor vehicle in-lieu taxes 3,573,904
Utility users tax 1,343,823
Investment income 665,196
Other revenue 376,950
Total general and other revenues 10,503,503
Change in net position 2,119,249
Net position, beginning of year, as restated (Note 13) 50,837,787 Net position, end of year $ 52,957,036
Program Revenues
City of Cudahy
Statement of Activities
For the Year Ended June 30, 2024
Primary Government
Governmental Activities
See accompanying Notes to the Basic Financial Statements. 10

FUND FINANCIAL STATEMENTS
Governmental Fund Financial Statements
Fiduciary Fund Financial Statements
11

City of Cudahy
Basic Financial Statements
For the Year Ended June 30, 2024
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12

State Gas Tax Special Revenue Fund - To account for gas tax revenue received from the State of California to cover costs of street maintenance and improvements.

GOVERNMENTAL FUND

FINANCIAL STATEMENTS
General Fund - To account for all general revenues of the City not specifically levied or collected for other City funds and for expenditures related to the rendering of general services by the City.

Housing Authority Special Revenue Fund - To account for assets used for low-and-moderate income housing activities in accordance with the applicable housing-related regulations.

Other Grants Special Revenue Fund - To account for State Grants relating to future development in the City including transportation related projects.
13

State Gas Tax
General Housing Other (Formerly
Fund Authority Grants Nonmajor Fund)
ASSETS
Cash and investments 4,526,676 $ 842,945 $ - $ 2,365,485 $ Taxes receivables 620,954 - - 155,851
Grant receivables - - 1,498,798 -
Notes receivables, net - 3,275,438 - -
Interest receivables 145,151 - - -
Other receivables 6,210 - - -
Prepaid items 77,459 - - -
Due from other funds 1,807,258 - - -
Land held for resale - 940,000 - -
Restricted cash and investments:

Cash and investments in escrow 2,085,814 - - -
Total assets $ 5,058,383 9,269,522 $ 1,498,798 $ 2,521,336 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities 1,658,443 $ - $ 202,866 $ 283,881 $ Deposits payable 66,197 - - -
Due to other governments - - - -
Due to other funds - - 1,295,932 362,540
Unearned revenue - - - -
Total liabilities - 1,724,640 1,498,798 646,421
Deferred inflows of resources:

Unavailable revenue - - 34,501 -
Total deferred inflows of resources - - 34,501 -
Fund balances:

Nonspendable 77,459 - - -
Restricted 2,085,814 5,058,383 - 1,874,915
Committed 900,000 - - -
Unassigned 4,481,609 - (34,501) -
Total fund balances 7,544,882 5,058,383 (34,501) 1,874,915 Total liabilities, deferred inflows of
resources, and fund balances $ 9,269,522 $ 5,058,383 $ 1,498,798 $ 2,521,336 Special Revenue Funds
City of Cudahy
Balance Sheet
Governmental Funds
June 30, 2024
See accompanying Notes to the Basic Financial Statements. 14

Nonmajor Total
Governmental Governmental
Funds Funds
ASSETS
Cash and investments $ 18,983,296 11,248,190 $
Taxes receivables 101,012 877,817
Grant receivables 134,215 1,633,013
Notes receivables, net 367,148 3,642,586
Interest receivables 104,891 250,042
Other receivables - 6,210
Prepaid items 36,055 113,514
Due from other funds - 1,807,258
Land held for resale - 940,000
Restricted cash and investments:

Cash and investments in escrow - 2,085,814
Total assets $ 11,991,511 $ 30,339,550

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities $ 165,603 $ 2,310,793 Deposits payable - 66,197
Due to other governments 141,000 141,000
Due to other funds 148,786 1,807,258
Unearned revenue - -
Total liabilities 455,389 4,325,248
Deferred inflows of resources:

Unavailable revenue - 34,501
Total deferred inflows of resources - 34,501
Fund balances:

Nonspendable 36,055 113,514
Restricted 11,500,067 20,519,179
Committed - 900,000
Unassigned - 4,447,108
Total fund balances 11,536,122 25,979,801
Total liabilities, deferred inflows of
resources, and fund balances $ 11,991,511 $ 30,339,550
City of Cudahy
Balance Sheet (Continued)
Governmental Funds
June 30, 2024
See accompanying Notes to the Basic Financial Statements. 15

City of Cudahy
Basic Financial Statements
For the Year Ended June 30, 2024
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16

Total Fund Balances - Total Governmental Funds $ 25,979,801 Amounts reported for governmental activities in the statement of net position are different because:

Capital assets, not being depreciated 18,920,650 $
Capital assets, being depreciated 70,771,553
Less accumulated depreciation (51,952,748)
Intangible assets, being amortized 149,660
Less accumulated amortization (22,325) 37,866,790
(117,763)
(129,448)
(4,970,552)
Lease liabilities - due within one year (25,013)
Lease liabilities - due in more than one year (106,246) (33,585)
(153,000)
Claims liabilities - due within one year (87,730)
Claims liabilities - due in more than one year (5,652,967) (147,393) 2,016,965
(4,549,042)
(540,831)
1,170,482
(2,981,921)
(268,979)
unavailable. 34,501
$ 52,957,036
Long-term debt - due in more than one year
Net position of governmental activities
OPEB related deferred inflows of resources
City of Cudahy
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2024
Capital assets used in governmental activities are not financial resources and are not reported in the funds:

Long-term liabilities were not due and payable in the current period. Therefore, they were not reported in the Governmental Funds' Balance Sheet.

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

Amount reported in government-wide statement of position:

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

Pension related deferred outflows of resources
Net pension liability
Revenues earned but not available to pay for current expenditures for governmental funds are Pension related deferred inflows of resources
Net other postemployment benefits liability and the related deferred outflows of resources and deferred inflows of resources are not due and payable in the current period or not available for current expenditures and are not reported in the governmental fund financial statements:

OPEB related deferred outflows of resources
Compensated absences - due within one year
Compensated absences - due in more than one year
See accompanying Notes to the Basic Financial Statements. 17

State Gas Tax
General Housing Other (Formerly
Fund Authority Grants Nonmajor Fund)
REVENUES:

Taxes 5,592,531 $ - $ - $ - $
Licenses and permits 2,581,906 - - -
Intergovernmental 3,588,929 - 1,525,549 1,208,629
Charges for services 145,985 - - -
Fines, forfeitures, and penalties 451,288 - - 65,062
Use of money and property 665,196 85,468 - -
Other revenue 376,950 - - -
Total revenues 85,468 13,402,785 1,525,549 1,273,691
EXPENDITURES:

Current:

General government 5,057,610 - - -
Public safety 4,965,840 - - -
Public works 1,276,315 - - -
Community services 1,339,916 - 658,799 -
Community development 1,218,731 - - 1,327,855
Capital outlay 3,046,131 - 909,053 -
Debt service:

Principal Retirement - - - -
Interest and fiscal charges 252,778 - - -
Total expenditures - 17,157,321 1,567,852 1,327,855

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 85,468 (3,754,536) (42,303) (54,164) OTHER FINANCING SOURCES (USES):

Transfers in 430,542 - 7,802 383,885
Transfers out (787,152) - - -
Proceeds from issuance of debt - - - -
Total other financing sources (uses) (356,610) - 7,802 383,885 NET CHANGES IN FUND BALANCES (4,111,146) 85,468 (34,501) 329,721 FUND BALANCES:

Beginning of year, as previously reported 11,656,028 1,782,945 - - Change in the financial reporting entity
(nonmajor to major fund) - - - 1,545,194
Error correction - 3,189,970 - -
Beginning of year, as restated (Note 13) 11,656,028 4,972,915 - 1,545,194 End of year $ 7,544,882 $ 5,058,383 $ (34,501) $ 1,874,915 Special Revenue Funds
City of Cudahy
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the Year Ended June 30, 2024
See accompanying Notes to the Basic Financial Statements. 18

Nonmajor Total
Governmental Governmental
Funds Funds
REVENUES:

Taxes $ 488,669 $ 6,081,200
Licenses and permits 122,179 2,704,085
Intergovernmental 3,217,955 9,541,062
Charges for services 29 146,014
Fines, forfeitures, and penalties - 516,350
Use of money and property 237,491 988,155
Other revenue - 376,950
Total revenues 4,066,323 20,353,816
EXPENDITURES:

Current:

General government - 5,057,610
Public safety 100,000 5,065,840
Public works 252,220 1,528,535
Community services 593,151 2,591,866
Community development 630,567 3,177,153
Capital outlay 280,455 4,235,639
Debt service:

Principal Retirement 18,401 18,401
Interest and fiscal charges 10,265 263,043
Total expenditures 1,885,059 21,938,087

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 2,181,264 (1,584,271)
OTHER FINANCING SOURCES (USES):

Transfers in 395,465 1,217,694
Transfers out (430,542) (1,217,694)
Proceeds from issuance of debt 149,660 149,660
Total other financing sources (uses) 114,583 149,660
NET CHANGES IN FUND BALANCES 2,295,847 (1,434,611)
FUND BALANCES:

Beginning of year, as previously reported 10,451,778 23,890,751 Change in the financial reporting entity
(nonmajor to major fund) (1,545,194) -
Error correction 333,691 3,523,661
Beginning of year, as restated (Note 13) 9,240,275 27,414,412 End of year $ 11,536,122 $ 25,979,801
City of Cudahy
Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Governmental Funds
For the Year Ended June 30, 2024
See accompanying Notes to the Basic Financial Statements. 19

Net Change in Fund Balances - Total Governmental Funds: $ (1,434,611) Amounts reported for governmental activities in the Statement of Activities are different because:
4,209,625
(972,350)
69,773
Claims liabilities $ 9,746
Compensated absences 18,892 9,146
1,255
323,423
Capitalize issuance of long-term debt (149,660)
Principal repayment of long-term debt 18,401
34,501
Change in net position of governmental activities $ 2,119,249 Unavailable revenue is not recognized as revenue in the governmental funds since the revenue is not available to fund expenditures of the current year.

The fund financial statements record interest expenditures on the current financial resources measurement focus whereas the Government-Wide Statement of Activities recognize interest expense on the accrual basis. The reconciling amount was the change in accrued interest from the prior year.

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

Depreciation and amortization expenses on capital assets were reported in the Government-Wide Statement of Activities, but they did not require the use of current financial resources. Therefore, depreciation expenses were not reported as an expenditure in the governmental funds.

Long-term compensated absences and claims liabilities expense was reported in the Government-Wide Statement of Activities, but it did not require the use of current financial resources. Therefore, the change in long-term compensated absences and claims liabilities was not reported as an expenditure in the governmental funds.

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

Pension expense, net of pension contribution made after measurement date in the amount of $665,150 OPEB expense
Capital outlay ($26,014 of capital outlay expenditures were for current public works expenditures for repairs and maintenance and therefore, were not capitalized).

City of Cudahy
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities and Changes in Net Position For the Year Ended June 30, 2024
Acquisition of capital assets was reported as expenditures in the governmental funds. However, in the Government-Wide Statement of Activities, the cost of those assets was allocated over the estimated useful lives as depreciation expense. The following was the amount of capital assets recorded in the current period:

See accompanying Notes to the Basic Financial Statements. 20

FIDUCIARY FUND

FINANCIAL STATEMENTS
Custodial Funds - To account for the assets held by the City as an agent for individuals, private organizations or other government units and/or other funds. The City’s custodial fund is the Cudahy Youth Foundation.

Successor Agency to the Dissolved Cudahy Community Development Commission Private-Purpose Trust Fund - This is a fiduciary fund type used by the City to report trust arrangements under which principal and income benefit other governments. This fund reports the assets, liabilities and activities of the Successor Agency to the Dissolved Cudahy Community Development Commission. The Private-Purpose Trust Fund reports a Statement of Fiduciary Net Position and a Statement of Changes in Fiduciary Net Position.
21

City of Cudahy
Basic Financial Statements
For the Year Ended June 30, 2024
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22

Private
Custodial Purpose Trust
Fund Fund
Successor
Agency to the
Dissolved Cudahy
Cudahy Youth Community
Foundation Development
ASSETS:

Cash and cash equivalents $ 4,620,459 48,606 $
Restricted cash and investments wish fiscal agent - 10,763 Total assets 4,631,222 48,606
DEFERRED OUTFLOWS OF RESOURCES:

Unamortized loss on defeasance of debt 609,306 -
Total deferred outflows of resources 609,306 -
LIABILITIES:

Accrued interest payable - 63,422
Long-term liabilities:

Bonds payable - due within one year - 1,590,000
Bonds payable - due in more than one year - 5,195,000
County tax deferrals - due in more than one year 1,478,851 - Total liabilities 8,327,273 -
NET POSITION (DEFICIT):

Held in trust for individuals, organizations, and other governments (3,086,745) 48,606 Total net position (deficit) $ (3,086,745) 48,606 $
City of Cudahy
Statement of Fiduciary Net Position
Fiduciary Fund
June 30, 2024
See accompanying Notes to the Basic Financial Statements. 23

Private
Custodial Purpose Trust
Fund Fund
Successor
Agency to the
Dissolved Cudahy
Cudahy Youth Community
Foundation Development
ADDITIONS:

Property tax trust fund $ - $ 1,823,156
Interest and investment income 1,300 152,604
Contributions 797 -
Other revenue 10,679 -
Total revenue 12,776 1,975,760
DEDUCTIONS:

Interest and fiscal charges - 540,583
Administrative expenses 6,316 251,500
Total expenses 6,316 792,083
Change in net position 6,460 1,183,677
SPECIAL ITEM:

Note payable written off - 1,409,928
NET CHANGES IN FUND BALANCES 6,460 2,593,605
NET POSITION (DEFICIT):

Beginning of year 42,146 (5,680,350)
End of year $ (3,086,745) 48,606 $
City of Cudahy
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2024
See accompanying Notes to the Basic Financial Statements. 24

25 NOTES TO THE BASIC

FINANCIAL STATEMENTS

26 City of Cudahy
Basic Financial Statements
For the Year Ended June 30, 2024
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City of Cudahy
Index to the Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
27 Page
Note 1 – Summary of Significant Accounting Policies ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 29 A. Financial Reporting Entity ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 29 B. Measurement Focus, Basis of Accounting, and Financial Statement Presentation ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 30 C. Cash and Investments ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 32 D. Land Held for Resale ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 32 E. Prepaid Item ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 32 F. Capital Assets ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 32 G. Interest Payable ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 33 H. Unearned Revenue ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 33 I. Compensated Absences ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 33 J. Pension ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 33 K. Deferred Outflows/Inflows of Resources ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 34 L. Other Postemployment Benefits (OPEB) ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 34 M. Long-Term Liabilities ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 35 N. Lease Liabilities ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 35 O. Property Taxes ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 35 P. Net Position ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 35 Q. Fund Balancesꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 36 R. Use of Estimates ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 36 S. Implementation of New GASB Pronouncementsꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 37 Note 2 – Stewardship, Compliance and Accountabilityꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 37 A. Deficit Net Position ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 37 B. Expenditures in Excess of Appropriations ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 37 Note 3 – Cash and Investments ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 38 A. Demand Deposits ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 38 B. Investments ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 38 C. Risk Disclosures ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 39 D. Investment in State Investment Pool ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 40 Note 4 – Notes Receivablesꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 40 Note 5 – Interfund Receivables, Payables, and Transfersꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 41 A. Due to/from Other Funds ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 41 B. Interfund Transfers ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 41 Note 6 – Capital Assetsꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 42 Note 7 – Long-Term Liabilities ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 43 Note 8 – Risk Management ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 44 A. Self-Insurance Programs of the Authority ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 44 B. Adequacy of Protection ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 45 C. Claims and Judgments ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 45

City of Cudahy
Index to the Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024
28 Page
Note 9 – Defined Benefit Pension Planꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 46 A. General Information about the Pension Plan Description ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 46 B. Pension Liability, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 47 C. Payable to the Pension Plan ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 51 Note 10 – Other Postemployment Benefits (“OPEB”) ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 52 A. General Information about the OPEB Plan ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 52 B. Net OPEB Liability ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 52 C. Change in the Net OPEB Liability ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 53 D. OPEB Expense and Deferred Inflows and Outflows of Resources Related to OPEB ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 54 Note 11 – Restricted Net Positionꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 55 Note 12 – Net Investment in Capital Assets ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 55 Note 13 – Changes to or within the Financial Reporting Entity and Error Correctionꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 56 Note 14 – Fund Balance Classifications ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 57 Note 15 – Commitments and Contingenciesꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 57 Note 16 – Successor Agencyꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 57

City of Cudahy
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
29 Note 1 – Summary of Significant Accounting Policies
The basic financial statements of the City of Cudahy, California, (the “City”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) as applied to governmental agencies. The Governmental Accounting Standards Board (“GASB”) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The following is a summary of the significant policies:

A. Financial Reporting Entity
The City is a municipal corporation governed by an elected five-member council. As required by generally accepted accounting principles, these financial statements present the primary government and its component units, which are separate legal entities for which the City is considered to be financially accountable.

Component Units
The financial statements includes the financial activities of the City, the primary government, and its component units, entities for which the City is considered to be financially accountable. The City is considered to be financially accountable for an organization if the City appoints a voting majority of that organization's governing body and the City is able to impose its will on that organization, or there is a financial benefits or financial burden relationship. The City is also considered to be financially accountable for an organization if that organization is fiscally dependent (i.e., it is unable to adopt its budget, levy taxes, set rates or charges, or issue bonded debt without approval from the City) and there is a financial burden or benefit component to the relationship. In certain cases, other organizations are included as component units if the nature and significance of their operational and financial relationship with the City are such that their exclusion would cause the City's financial statements to be misleading or incomplete.

Management determined that the following component units should be blended based on the criteria above:

Cudahy Economic Development Corporation (“CEDC”)
The CEDC was created to hold the assets of the former redevelopment agency of the City. In 2014, the State Controller’s Office ordered the transfer of the assets to the Successor Agency to the former Cudahy Community Development Commission/ Redevelopment Agency (Successor Agency). In 2015, the Board of Directors of CEDC and the Oversight Board to the Successor Agency approved the asset transfer agreement. Accordingly, all properties of CEDC were transferred to the Successor Agency on October 19, 2015.

Cudahy Financing Authority (the “Financing Authority”)
The Financing Authority is a joint powers authority whose members are the City and the Successor Agency. The Financing Authority is duly organized and existing under a Joint Exercise of Powers agreement by and between the City and the former Redevelopment Agency, under the provisions of Chapter 5 of Division 7 of Title 1 of the California Government Code. Its purpose is to assist the City and the Successor Agency in providing financing for capital projects and improvements. The officers of the City and the Successor Agency serve as the officers of the Financing Authority.

The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity.

The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses, as appropriate. City resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.

City of Cudahy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
30 Note 1 – Summary of Significant Accounting Policies (Continued) B. Measurement Focus, Basis of Accounting, and Financial Statement Presentation Government-Wide Financial Statements
The government-wide financial statements are reported using the “economic resources” measurement focus and the accrual basis of accounting. Under the economic resources measurement focus, all assets and deferred outflows of resources and liabilities and deferred inflows of resources (whether current or noncurrent) are included in the Statement of Net Position. Operating statements present increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows.

The Statement of Net Position and Statement of Activities report information about the reporting government as a whole, except for its fiduciary activities.

The Statement of Activities presents a comparison between direct expenses and program revenues for each function of the City's governmental activities. Direct expenses are those that are specifically associated with a program or function and are clearly identifiable to a particular function. Program revenues include: 1) charges paid by the recipients of goods or services offered by the programs and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.

Certain eliminations have been made in regards to interfund activities, payables and receivables. All internal balances in the statement of net position have been eliminated, except those representing balances between the governmental activities and the business-type activities, which are presented as internal balances and eliminated in the total primary government column. In the statement of activities, internal service fund transactions have been eliminated; however, those transactions between governmental and business-type activities have not been eliminated.

The following interfund activities have been eliminated:
 Due from/to other funds
 Transfers in/out
Nonexchange transactions, in which the City gives (or receives) value without directly receiving (or giving) equal value in exchange include property taxes, grants, and contributions. Revenues from grants, and contributions are recognized in the fiscal year in which all the eligibility requirements have been satisfied.

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 they are needed.

Governmental fund financial statements
Governmental fund financial statements are reported using the “current financial resources” measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collected within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period, except for certain grants which are considered available if collected within 7 months after year-end. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.

City of Cudahy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
31 Note 1 – Summary of Significant Accounting Policies (Continued) B. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) Governmental fund financial statements (Continued)
The City reports the following major governmental funds:

General Fund: This fund is used to account for all financial resources of the City, except for those required to be accounted for in another fund.

Housing Authority Special Revenue Fund: This fund accounts for assets used for low-and-moderate income housing activities in accordance with the applicable housing-related regulations.

Other Grants Special Revenue Fund: This fund accounts for assets used for low-and-moderate income housing activities in accordance with the applicable housing-related regulations.

State Gas Tax Special Revenue Fund: This fund accounts for assets used for low-and-moderate income housing activities in accordance with the applicable housing-related regulations.

Fiduciary Fund Financial Statements
Fiduciary fund financial statements include a Statement of Net Position and a Statement of Changes in Fiduciary Net Position. The City’s fiduciary funds represent custodial funds and private purpose trust funds. Both custodial funds and the private purpose trust funds are accounted for on the full accrual basis of accounting where the assets associated with the activity are controlled by the City and the assets are not derived 1) solely from the government’s own-source revenues or 2) from government-mandated nonexchange transactions or voluntary nonexchange transactions.

The City reports the following two types of fiduciary funds:

Custodial Funds
These funds are used to account for the assets held by the City in a purely custodial capacity, as an agent for individuals, private organizations or other government units and/or other funds.

Successor Agency Private-Purpose Trust Fund
Private-Purpose trust fund is a fiduciary fund type used by the City to report trust arrangements under which principal and income benefit other governments. This fund is used to report the assets, liabilities and activities of the Successor Agency to the Dissolved Cudahy Community Development Commission. The Private - Purpose Trust Fund reports a statement of fiduciary net position and a statement of changes in fiduciary net position.

City of Cudahy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
32 Note 1 – Summary of Significant Accounting Policies (Continued) C. Cash and Investments
The City pools cash and investments of all funds. Each fund’s share in this pool is displayed in the accompanying financial statements as cash and investments.

The City pools cash from all funds in order to increase income earned through its investment program.

Investment income from pooled investments is allocated to those funds which are required by law or administrative action to receive interest. Investment income is allocated on a quarterly basis based on the weighted average cash balance in each fund.

D. Land Held for Resale
Land held for resale is carried at the lower of cost or estimated net realizable value.

E. Prepaid Items
Certain payments to vendors reflect costs applicable to future periods and are recorded under prepaid expenses in both government-wide and fund financial statements. These costs will be recognized in the period when services are received or when the City receives title to the property.

F. Capital Assets
Capital assets, which include land, buildings, improvements, equipment and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items) are reported in the governmental activities column in the government-wide financial statements. Capital assets are recorded at the lower of actual historical cost or fair value (as of the date donated for contributed assets).

It is the City's policy to capitalize all land, building, improvements, equipment and infrastructure assets, except assets costing less than $5,000, and to capitalize infrastructure assets costing $50,000 or more. In the governmentwide financial statements, costs of assets sold or retired (and related amounts of accumulated depreciation) are eliminated from the accounts in the year of sale or retirement and the resulting gain or loss is included in the statement of activities. In governmental funds, the sale of general capital assets is included in the statement of revenues, expenditures and changes in fund balances as proceeds from sale.

The City has analyzed its capital assets for potential impairment. The City does not believe that any capital assets are impaired at June 30, 2024.

The costs of normal maintenance and repairs that do not add to the value of the assets or materially extend asset lives are not capitalized.

The City established a threshold to recognize a right-to-use including lease asset in the government-wide financial statements right-to-use asset over $5,000.

City of Cudahy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
33 Note 1 – Summary of Significant Accounting Policies (Continued) F. Capital Assets (Continued)
Lease assets are recorded at the amount of the initial measurement of the lease liabilities and adjusted by any lease payments made to the lessor at or before the commencement of the lease term, less any lease incentives received at or before the commencement of the lease term along with any initial direct costs that are ancillary charges necessary to place the lease assets into service. Lease assets are amortized using the straight-line method over the shorter of the lease term or the useful life of the underlying asset, unless the lease contains a purchase option that the City has determined is reasonably certain of being exercised. In this case, the lease asset is amortized over the useful life of the underlying asset.

Capital assets are depreciated using the straight-line method over the following estimated useful lives:

Building and improvements 50 years
Parks and park improvements 40 years
Infrastructure 10 to 40 years
Vehicles, furniture and equipment 3 to 5 years
G. Interest Payable
In the government-wide financial statements, interest payable on long-term debt is recognized, as the liability is incurred, for governmental activities. In the fund financial statements, only private-purpose trust fund types recognize the interest payable when the liability is incurred.

H. Unearned Revenue
Unearned revenues arise when the City receives resources before it has a legal claim to them (e.g., when grant monies are received prior to the incurrence of qualifying expenditures).

I. Compensated Absences
City employees receive up to 240 paid vacation hours per year, depending upon their length of service. In the fund financial statements, the City accounts for compensated absences (unpaid vacation and sick leave) as expenditures in the year paid, as it is the City's policy to liquidate any unpaid vacation or compensatory pay from future resources, rather than from currently available expendable resources.

All unpaid vacation and sick pay is accrued when earned in the government-wide and fiduciary fund financial statements.

J. Pension
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the plans and additions to/deductions from the plans’ fiduciary net position have been determined on the same basis as they are reported by the plans. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with benefit terms. Investments are reported at fair value.

City of Cudahy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
34 Note 1 – Summary of Significant Accounting Policies (Continued) J. Pension (Continued)
The following timeframes are used for pension reporting:

Valuation Date June 30, 2022
Measurement Date June 30, 2023
Measurement Period July 1, 2022 to June 30, 2023
Gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time. The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense. The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized straight-line over 5 years. All other amounts are amortized straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period.

K. Deferred Outflows/Inflows of Resources
The Statement of Net Position and Balance Sheet report separate sections for deferred outflows of resources, and deferred inflows of resources, when applicable.

Deferred Outflows of Resources represent a consumption of net asset that apply to future periods.

Deferred Inflows of Resources represent an acquisition of net asset that apply to future periods.

L. Other Postemployment Benefits (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the OPEB Plan and additions to/deductions from OPEB Plan's fiduciary net position have been determined on the same basis as they are reported by the Plan. For this purpose, the OPEB Plan recognizes benefit payments when due and payable in accordance with the benefit terms. Investments are reported at fair value, except for money market investments, which are reported at amortized cost.

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

The following timeframes are reported OPEB reporting:

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

City of Cudahy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
35 Note 1 – Summary of Significant Accounting Policies (Continued) M. Long-Term Liabilities
In the government-wide and fiduciary fund financial statements, long-term debt and other long-term obligations are reported as liabilities. Bond premiums and discounts are deferred and amortized over the life of the bonds.

Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are expensed when incurred.

N. Lease Liabilities
The City recognizes lease liabilities with an initial, individual value of $5,000 or more with a lease term greater than one year in the government-wide and proprietary fund financial statements. Variable payments based on future performance of the lessee or usage of the underlying asset are not included in the measurement of the lease liability.

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

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

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

O. Property Taxes
Assessed values are levied on an annual basis by the Los Angeles County Assessor as of July 1. Taxes become a lien on real property on January 1 and are payable in two installments on November 1 and February 1. They become delinquent if not paid by December 10 and April 10, respectively.

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

Net Investment in Capital Assets – This component of net position consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of debt that are attributable to the acquisition, construction, or improvement of those assets, net of unspent debt proceeds, and the capital debt related deferred outflows and inflows of resources.

City of Cudahy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
36 Note 1 – Summary of Significant Accounting Policies (Continued) P. Net Position (Continued)
Restricted – This component of net position consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets.

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

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

Nonspendable fund balance – includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact. The City’s nonspendable fund balances represent prepaid items.

Restricted fund balance – includes resources that are subject to externally enforceable legal restrictions. It includes amounts that can be spent only for the specific purposes stipulated by constitution, external resource providers, or through enabling legislation.

Committed fund balance – includes amounts that can be used only for the specific purposes determined by a formal action or resolution of the City’s highest level of decision-making authority (City Council). Committed amounts cannot be used for any other purpose unless the City Council removes or changes the specific use through the same type of formal action or resolution taken to establish the commitment. The City has no committed fund balances.

Assigned fund balance – consists of funds that are set aside for specific purposes by the City’s highest level of decision-making authority or a body or official that has been given the authority to assign funds. The City Council delegates the authority to assign fund balance to the City Manager for purposes of reporting in the annual financial statements. The City has no assigned fund balances.

Unassigned fund balance – is the residual classification for the City’s general fund and includes all spendable amounts not contained in the other classifications. This category also provides the resources necessary to meet unexpected expenditures and revenue shortfalls. However, in governmental funds other than General Fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund.

R. Use of Estimates
The preparation of the basic financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

City of Cudahy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
37 Note 1 – Summary of Significant Accounting Policies (Continued) S. Implementation of New GASB Pronouncements
In June 2022, GASB issued Statement No. 100, Accounting Changes and Error Corrections – an Amendment of GASB Statement No. 62. The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. Application of this statement did not have a significant effect on City’s fiscal year ending June 30, 2024.

Note 2 – Stewardship, Compliance and Accountability
A. Deficit Net Position
The following funds had deficit net positions at June 30, 2024:

Governmental Funds:

Other Grants Special Revenue Fund (34,501) $
Fiduciary Funds:

Succesor Agency to the Dissolved Cudahy
Community Development (3,086,745)
The deficit in the Other Grant Special Revenue Fund is temporary and will be resolved as the unavailable revenue becomes available when grant reimbursements are received.

The deficit in the Successor Agency to the Dissolved Cudahy Community Development Fund will be eliminated through future revenues received from the Recognized Obligation Payment Schedule (ROPS).

B. Expenditures in Excess of Appropriations
The following funds have expenditures in excess of appropriations:

Excess of
Expenditures over
Fund Appropriations Expenditures Appropriations
Nonmajor Governmental Fund:

AQMD Special Revenue Fund $ 51,500 $ 184,736 $ (133,236) Street Lighting Special Revenue Fund 73,044 207,887 (134,843) Development Impact Fees Special Revenue Fund 117,900 - (117,900)

City of Cudahy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
38 Note 3 – Cash and Investments
The following is a summary of pooled cash and investments, including cash and investments with fiscal agents at June 30, 2024:

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

Cash and investments 18,983,296 $ 4,669,065 $ 23,652,361 $ Restricted assets:

Investments in escrow 2,085,814 - 2,085,814
Investments with fiscal agent - 10,763 10,763
Total cash and investments $ 4,679,828 21,069,110 $ 25,748,938 $ Cash and investments consisted of the following at June 30, 2024:

Petty cash $ 1,900
Demand deposits 10,833,259
Investments 14,913,779
Total cash and investments $ 25,748,938
A. Demand Deposits
The carrying amounts of the City’s demand deposits were $10,833,259 at June 30, 2024. Bank balances at that date were $10,075,166, the total amount of which was collateralized or insured with securities held by the pledging financial institutions in the City’s name as discussed below. The difference between the carrying amount and bank balances represents outstanding checks, deposits in transit, and other reconciling items.

The California Government Code requires California banks and savings and loan associations to secure the City’s cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in the City's name.

The market value of pledged securities must equal at least 110% of the City's cash deposits. California law also allows institutions to secure City’s deposits by pledging first trust deed mortgage notes having a value of 150% of the City’s total cash deposits. The City may waive collateral requirements for cash deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation (“FDIC”).

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

B. Investments
Investments Authorized by the City’s Investment Policy
The following table 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 trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City's investment policy.

City of Cudahy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
39 Note 3 – Cash and Investments (Continued)
B. Investments (Continued)
Investments Authorized by the City’s Investment Policy (Continued) Authorized by Maximum Maximum
Investment Maximum Percentage Investment in
Authorized Investment Type Policy Maturity of Portfolio * One Issuer United States treasury obligations Yes 5 years No Limit No Limit United States Agency Securities Yes 5 years No Limit No Limit Local Agency Bonds Yes 1 year N/A N/A
Negotiable certificates of deposit Yes 5 years 30% none Bankers' acceptances Yes 180 days 40% 30%
Commercial paper Yes 270 days 25% none
Money market mutual funds Yes N/A 20% none
Local Agency Investment Fund ("LAIF") Yes N/A None No Limit Joint Powers Authority pooled investment funds Yes 5 years N/A N/A Reverse repurchase agreements No N/A N/A N/A
Medium-term notes No N/A N/A N/A
Mutual funds No N/A N/A N/A
Mortgage pass through No N/A N/A N/A
N/A - Not Applicable
* Excluding amounts held by bond trustees that are not subject to California Government Code restrictions.

C. Risk Disclosures
Interest Rate Risk
As a means of limiting its exposure to fair value losses arising from rising interest rates, the City’s investment provides that, final maturities of securities cannot exceed five years. Specific maturities of investments depend on liquidity needs. At June 30, 2024, the City’s investments had the following maturities:

Investment Type Fair Value 1 Year or Less
1 Year to 3
Years
3 Years to 5
Years
Local Agency Investment Fund 12,817,202 $ $ 12,817,202 $ - $ - Helf by fiscal agents:

Money market funds 10,763 10,763 - -
In escrow:

Money market funds 2,085,814 2,085,814 - -
Total $ 14,913,779 $ 14,913,779 $ - $ -
Remaining Maturity
Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. To be eligible to receive City money, a bank, savings association, federal association, or federally insured industrial loan company shall have received an overall rating of not less than "satisfactory" in its most recent evaluation by the appropriate federal financial supervisory agency of its record of meeting the credit needs of California's communities, including low-and-moderate income neighborhoods.

The City’s investments are either not rated or not required to be rated by the nationally recognized statistical rating organization.

City of Cudahy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
40 Note 3 – Cash and Investments (Continued)
D. Investment in State Investment Pool
The City is a participant in the Local Agency Investment Fund (“LAIF”) which is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. As of June 30, 2024, the City had $12,817,202 invested in LAIF. The fair value of the City’s position in the pool is the same as the value of the pool shares and reported at amortized cost which approximates fair value.

Note 4 – Notes Receivables
Notes receivable in the governmental activities at June 30, 2024 include the following:

Housing Authority loans $ 3,275,438
Home-owner loans:

Cal HOME loans 141,000
Community Development Block Grants Loans 226,148
Home-owner loans total 367,148
Total $ 3,642,586
Housing Authority Loans
Pursuant to the provisions of ABX1 26 and Resolution No 12-04, the City assumed all housing assets and housing functions of the former Redevelopment Commission. The housing assets transferred on February 1, 2012 to the Housing Authority included the following notes receivables which represent loans made for assistance in rehabilitating property for affordable housing, plus accrued interest. Because interest is payable at maturity and is not available to finance current operations, interest on notes receivable is not recognized in the financial statements as a current period revenue:

In November 1995 and May 1997, the Successor Agency (previously Cudahy Community Development Commission) loaned $220,000 and $60,000, respectively, to Elizabeth West & East L.P. The note is collateralized by a deed of trust on 5225-27 Elizabeth Street. The note bears compounding interest at 6.55% and all principal and accrued interest is due in November 2025. The balance of the loan at June 30, 2024 was $1,608,692.

In June 1998, February 2000, and September 2000, the Successor Agency loaned $150,000, $140,000 and $210,000, respectively, to 5159 Clara Street LLP for a total loan of $500,000. The note is collateralized by a deed of trust on 5159 Clara Street. The note bears simple interest at 1% and all principal and accrued interest are due in May 2026.

The balance of the loan at June 30, 2024 was $623,233.

During the year ended June 30, 2000, the Successor Agency agreed to loan $650,000 to Live Oak LLP, of which $590,000 had been advanced through June 30, 2003. The note is collateralized by a deed of trust on 5203 Live Oak.

The note bears interest at 2.5% and all principal and accrued interest are due in August 2029. The balance of the loan at June 30, 2024 was $1,043,513.

City of Cudahy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
41 Note 4 – Notes Receivables (Continued)
Home-owner Loans
The City granted loans to qualified individual homeowners in connection with the Cal Home and CDBG programs.

The loans are collateralized by deeds of trust in favor of the City. The notes vary as to terms and conditions. The notes have varying interest rates up to 3% and due dates from 5 years to unspecified. As of June 30, 2024, the outstanding loan balances were $367,148.

Note 5 – Interfund Receivables, Payables, and Transfers A. Due to/From Other Funds
At June 30, 2024, the City had the following advances to/from other funds:

Due From Other Funds
Due To Other Funds General Fund
Governmental Funds:

Other Grants 1,295,932 $
State Gas Tax 362,540
Nonmajor Governmental Funds 148,786
Total $ 1,807,258
The receivable of the General Fund from the Nonmajor Governmental Funds represents routine and temporary cash flow assistance to cover cash shortfalls.

B. Interfund Transfers
For the year ended June 30, 2024, the City had the following interfund transfers:

Other Grants State Gas Tax Nonmajor
General Special revenue Special revenue Governmental
Transfers Out Fund Funds Funds Funds Total
Governmental Funds:

General Fund - $ 7,802 $ 383,885 $ 395,465 $ 787,152 $
Nonmajor Governmental Funds 430,542 - - - 430,542
Total $ 7,802 430,542 $ 383,885 $ 395,465 $ 1,217,694 $ Governmental Funds
Transfers In
The General Fund transferred $7,802 to Other Grants Special Revenue Funds, $383,885 State Gas Tax Special Revenue Funds, and $395,465 to Nonmajor Governmental Funds to cover the operations.

The Nonmajor Governmental Funds transferred $430,542 to General Fund to close Prop 1B Local Street Special Revenue Funds and Recycling Conservation Grants Special Revenue Funds and to cover administrative and program costs accounted for within the General Fund.

City of Cudahy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
42 Note 6 – Capital Assets
A summary of changes in the governmental activities capital assets for the year ended June 30, 2024 is as follows:

Balance Balance
July 1, 2023 Additions Deletions Transfers June 30, 2024 Capital assets, not being depreciated:

Land $ 14,183,012 $ - $ - $ 14,183,012 - $
Construction in progress 872,450 3,865,188 - 4,737,638 - Total capital assets, not being depreciated 15,055,462 3,865,188 - 18,920,650 - Capital assets, being depreciated:

Structures and improvements 17,102,146 - - 17,102,146 - Infrastructure 52,066,276 - - 52,066,276 -
Vehicles 806,464 158,445 - 964,909 -
Furniture and equipment 601,890 36,332 - 638,222 -
Total capital assets, being depreciated 70,576,776 194,777 - 70,771,553 - Less accumulated depreciation for:

Structures and improvements (6,691,532) (312,928) - (7,004,460) - Infrastructure (43,523,083) (500,933) - (44,024,016) -
Vehicles (483,611) (74,336) - (557,947) -
Furniture and equipment (304,497) (61,828) - (366,325) - Total accumulated depreciation (51,002,723) (950,025) - (51,952,748) - Total capital assets, being depreciated, net 19,574,053 (755,248) - 18,818,805 - Intangible assets, being amortized:

Right of use - leased vehicles 149,660 - - 149,660 -
Total capital assets, being depreciated 149,660 - - 149,660 - Less accumulated amortization for:

Right of use - leased vehicles (22,325) - (22,325) -
Total accumulated amortization (22,325) - - (22,325) -
Total intangble assets, being amortized, net 127,335 - - 127,335 - Governmental activities
capital assets, net $ 34,629,515 $ 3,237,275 $ - $ 37,866,790 - $ Depreciation expense was charged to functions of the governmental activities for the year June 30, 2024 as follows:

General government $ 70,072
Public works 523,258
Community services 66,092
Community development 312,928
Total depreciation and amortization expense $ 972,350

City of Cudahy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
43 Note 7 – Long-Term Liabilities
The summary of changes in the governmental activities long-term liabilities for the year ended June 30, 2024 is as follows:

Balance Balance Due within Due in more
July 1, 2023 Additions Deletions June 30, 2024 One Year One Year Siemens purchase finance 5,100,000 $ $ - $ 5,100,000 - $ $ 129,448 $ 4,970,552 Lease liabilities 149,660 - (18,401) 131,259 25,013 106,246 Claims liabilities (Note 8) 244,869 771,310 (781,056) 235,123 87,730 147,393 Compensated absences 195,731 136,954 (146,100) 186,585 33,585 153,000 Total $ 5,540,600 $ 1,057,924 $ (945,557) $ 5,652,967 $ 275,776 $ 5,377,191 Siemens Purchase Finance
The City entered into a tax-exempt purchase finance agreement with Siemens Public, Inc. to finance the City-Wide Energy Efficiency Facilities Modernization Project on October 7, 2022. The principal is subject to 4.9029% interest and are due October 7, 2024 through October 7, 2038. The outstanding balance at June 30, 2024 was $5,100,000.

The annual future debt service requirements are as follows:

Fiscal Year Principal Interest Total
2025 $ 129,448 $ 376,108 $ 505,556
2026 266,709 238,847 505,556
2027 280,028 225,528 505,556
2028 294,012 211,544 505,556
2029 308,694 196,862 505,556
2030-2034 1,790,689 737,093 2,527,782
2035-2039 2,030,420 244,584 2,275,004
Total 5,100,000 $ $ 2,230,566 $ 7,330,566
Lease Liabilities
On October 1, 2023, the City entered into a 60 month lease as Lessee for the use of vehicles. An initial liability was recorded in the amount of $149,660. The City is required to make annual variable principal and interest payments of $38,222. As of June 30, 2024, the outstanding balance of the lease liability is $131,259. The lease has interest rates ranges from 11.0012 to 11.0151%. The value of the right of use asset as of June 30, 2024 of $149,660 with accumulated amortization of $22,325 is included on the governmental activities intangible assets.

Principal and interest payments to maturity at June 30, 2024 are as follows:

Fiscal Year Principal Interest Total
2025 $ 25,013 $ 13,209 $ 38,222
2026 27,909 10,313 38,222
2027 31,140 7,082 38,222
2028 34,745 3,477 38,222
2035-2039 12,452 287 12,739
Total $ 131,259 $ 34,368 $ 165,627

City of Cudahy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
44 Note 7 – Long-Term Liabilities (Continued)
Compensated Absences
The long-term portion of compensated absences payable has been accrued for the Governmental Activities on the Government-Wide Financial Statements. In prior years, the General Fund has typically been used to liquidate the liability. The balance outstanding at June 30, 2024 was $186,595.

Note 8 – Risk Management
A. Self-Insurance Programs of the Authority
Municipal Insurance Cooperative (“MIC”) provides comprehensive and cost-effective coverage in terms of limits of liability and insurance coverage. MIC is available to public entities of all sizes, providing an insurance program that will assist them in maximizing valuable resources.

Liability
In the liability program, each member is individually rated based upon current market conditions and loss experience and exposures. Members have the option to purchase any and all of the available insurance program that makes sense for their agency. The City has elected to purchase excess liability coverage through MIC with total limits of $10M with a $100K self-insured retention. Premiums for the coverage are paid annually and are not subject to retrospective adjustments.

Workers' Compensation
In the workers’ compensation program, the City is individually rated based upon current market conditions, exposures and loss experience with the option to secure coverage at a retention level that is appropriate to the City’s appetite for risk. The City of Cudahy has elected to purchase excess workers’ compensation coverage through Arch Insurance Company with statutory limits and a self-insured retention of $1M. Premiums for the coverage are paid annually and are not subject to retrospective adjustments.

Property Insurance
The City purchases stand-alone all-risk property coverage for all city owned property excluding earthquake and flood. The City currently has all-risk property insurance protection based upon total insurable values of $30,669,962. The coverage deductibles consist of $10,000 per occurrence for covered perils, $50,000 for vacant buildings, $100,000 for wildfire and $10,000 for service interruption. Premiums for the coverage are paid annually and are not subject to retrospective adjustments.

Crime Insurance
The City purchases government crime insurance coverage in the amount of $5,000,000 with a $50,000 deductible.

The fidelity coverage is provided through commercial insurance. Premiums are paid annually and are not subject to retrospective adjustments.

City of Cudahy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
45 Note 8 – Risk Management (Continued)
A. Self-Insurance Programs of the Authority (Continued) Cyber Liability Insurance
The City purchases cyber liability also known as data security breach coverage consisting of both first party and third-party liability through commercial insurance. Coverage limits consist of $1,000,000 per occurrence with a $10,000 retention, per claim. Premiums are paid annually and are not subject to retrospective adjustments.

Special Event Tenant User Liability Insurance
The City further protects against liability damages by requiring tenant users of certain property to purchase lowcost tenant user liability insurance for certain activities on agency property. The insurance premium is paid by the tenant user and the insurance is arranged by the City’s insurance broker, Keenan & Associates.

B. Adequacy of Protection
During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceeded insured coverage. There were also no significant reductions in pooled or insured liability coverage in 2023-24.

C. Claims and Judgments
The City accounts for uninsured, material claims and judgments and associated legal and administrative costs when it is probable that the liability claim has been incurred and the amount of the loss can be reasonably estimated. Included therein are claims incurred but not reported, which consists of (a) known loss events expected to be presented as claims later, (b) unknown loss events that are expected to become claims, and (c) expected future development on claims already reported. This is based upon historical actual results that have established a reliable pattern supplemental by specific information about current matters. Small dollar claims and judgments are recorded as expenditures when paid. There were worker’s compensation claims that remained outstanding for claims occurred prior to leaving California Joint Powers Insurance Authority.

A summary of the changes in claims liabilities for the past three fiscal years is as follows:

Expenses and
Beginning Changes in Claims Ending
Balance Estimates Payments Balance
2021-2022 343,032 $ 25,679 $ $ (165,755) $ 202,956
2022-2023 202,956 101,455 (59,542) 244,869
2023-2024 244,869 771,310 (781,056) 235,123

City of Cudahy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
46 Note 9 – Defined Benefit Pension Plan
A. General Information about the Pension Plan Description Plan Description
All qualified permanent and probationary employees are eligible to participate in the City’s Miscellaneous Employee Pension Plan, cost-sharing multiple employer defined benefit pension plan administered by the California Public Employees’ Retirement System (“CalPERS”). Benefit provisions under the Plan are established by State statute and the City’s resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.

Classic participants (defined as eligible participants prior to January 1, 2013) are required to contribute 8% of their annual covered salary. New or Public Employees’ Pension Reform Act of 2013 (PEPRA) participants (defined as eligible employees brought into CalPERS membership for the first time on or after January 1, 2013) contribute at least half the normal cost rate as determined by CalPERS. The City contributes the remaining amounts necessary to fund the benefits for its employees, using the actuarial basis adopted by the CalPERS Board of Administration.

Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to Plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost-of-living adjustments for each plan are applied as specified by the California Public Employees’ Retirement Law.

The Plans’ provisions and benefits in effect as of June 30, 2024 are summarized as follows:

Classic Second Tier PEPRA
Hire Date Prior to January 1, 2013 Prior to January 1, 2013 January 1, 2013 and after Benefit Formula 2.7% at 55 2% at 60 2% at 62
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 52-67
Monthly benefits, as a % of eligible compensation 2.0% to 2.7% 2.0% to 2.7% 1.0% to 2.5% Required employee contribution rate (22-23) 8.000% 7.000% 6.750% Required employer contribution rate (22-23) 14.030% 9.120% 7.470% Miscellaneous Plan
Employees Covered by Benefit Terms
As of June 30, 2022, the valuation dates, the following number of employees were covered by the benefit terms:

Classic Second Tier PEPRA
Active employees 42 25
Transferred and terminated employees 16 6 6
Retired employees and beneficiaries 40 2 2
Total 60 10 33

City of Cudahy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
47 Note 9 – Defined Benefit Pension Plan (Continued)
A. General Information about the Pension Plan Description (Continued) Contributions
Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS. 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.

For the year ended June 30, 2024 the contributions made to the Plan were as follows:

Miscellaneous
Contributions - employer 665,150 $
Contributions - employee 273,664
B. Pension Liability, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions
Actuarial Methods and Assumptions Used to Determine Total Pension Liability The June 30, 2022 valuations were rolled forward to determine the June 30, 2023 total pension liabilities based on the following actuarial methods and assumptions:

Actuarial Cost Method Entry Age Normal
Actuarial Assumptions:

Discount Rate
Inflation
Salary Increases Varies by Entry Age and Service
Mortality Rate Table1 Derived using CalPERS' Membership Data for all Funds Post Retirement Benefit Increase

6.90%

2.30%
The lesser of contract COLA or 2.30% until Purchasing
Power Protection. Allowance floor on purchasing
power applies, 2.30% thereafter
1 The mortality table used was developed based on CalPERS-specific data. The rates incorporate Generational Mortality to capture ongoing mortality improvement using 80% of Scale MP 2020 publised by the Society of Actuaries. For more details, please refer to the to 2021 study report that can be found on the CalPERS website.

City of Cudahy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
48 Note 9 – Defined Benefit Pension Plan (Continued)
B. Pension Liability, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued)
Change of Assumptions
There were no assumption changes in 2023.

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

In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated and, combined with risk estimates, are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return.

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

Assumed Asset
Asset Class1 Allocation Real Return 1,2
Global Equity - Cap-weighted 30.00% 4.54%
Global Equity - Non-cap-weighted 12.00% 3.84%
Private Equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed Securities 5.00% 0.50%
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%
100.00%
1 An expected inflation of 2.30% used for this
2 Figures are based on the 2021-22 Asset Liability Management study.

Discount Rate
The discount rate used to measure the total pension liability was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

City of Cudahy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
49 Note 9 – Defined Benefit Pension Plan (Continued)
B. Pension Liability, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued)
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the Plan as of the measurement date, calculated using the discount rate of 6.90%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (5.90%) or 1 percentage-point higher (7.90%) than the current rate:

Discount Rate Current Discount Discount Rate
Measurement Date - 1% (5.90%) Rate (6.90%) + 1% (7.90%) June 30, 2023 6,509,324 $ 4,549,042 $ 2,935,563 $
Plan's Aggregate Net Pension Liability (Asset)
Pension Plan Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

Proportionate Share of Net Pension Liability and Pension Expense The following table shows the plan’s proportionate share of the risk pool collective net pension liability over the measurement periods:

Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
(a) (b) (c) = (a) - (b)
Balance at 6/30/22 (Valuation Date) $ 13,901,679 $ 9,599,532 $ 4,302,147 Balance at 6/30/23 (Measurement Date) 14,494,218 9,945,176 4,549,042 Net Changes during 2022-2023 592,539 345,644 246,895
Increase (Decrease)
The following is the approach established by the plan actuary to allocate the net pension liability and pension expense to the individual employers within the risk pool for the measurement period ended June 30, 2023. (1) In determining a cost-sharing plan’s proportionate share, total amounts of liabilities and assets are first calculated for the risk pool as a whole on the valuation date June 30, 2022 The risk pool’s fiduciary net position (“FNP”) subtracted from its total pension liability (“TPL”) determines the net pension liability (“NPL”) at the valuation date.
(2) Using standard actuarial roll forward methods, the risk pool TPL is then computed at the measurement dates June 30, 2023. Risk pool FNP at the measurement date is then subtracted from this number to compute the NPL for the risk pool at the measurement date. For purposes of FNP in this step and any later reference thereto, the risk pool’s FNP at the measurement date denotes the aggregate risk pool’s FNP at June 30, 2023 less the sum of all additional side fund (or unfunded liability) contributions made by all employers during the measurement period (2022-2023).

City of Cudahy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
50 Note 9 – Defined Benefit Pension Plan (Continued)
B. Pension Liability, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued)
Proportionate Share of Net Pension Liability and Pension Expense (3) The individual plan’s TPL, FNP and NPL are also calculated at the valuation date. TPL is allocated based on the rate plan’s share of the actuarial accrued liability. FNP is allocated based on the rate plan’s share of the market value assets.
(4) Two ratios are created by dividing the plan’s individual TPL and FNP as of the valuation date from (3) by the amounts in step (1), the risk pool’s total TPL and FNP, respectively. (5) The plan’s TPL as of the Measurement Date is equal to the risk pool TPL generated in (2) multiplied by the TPL ratio generated in (4). The plan’s FNP as of the Measurement Date is equal to the FNP generated in (2) multiplied by the FNP ratio generated in (4) plus any additional side fund (or unfunded liability) contributions made by the employer on behalf of the plan during the measurement period. (6) The plan’s NPL at the Measurement Date is the difference between the TPL and FNP calculated in (5).

Deferred outflows of resources, deferred inflows of resources, and pension expense is allocated based on the City’s share of net pension liability.

The City proportionate share of the net pension liability was as follows:

Measurement Date
June 30, 2022 0.03725%
June 30, 2023 0.03646%
Change - Increase (Decrease) -0.00078%
For the years ended June 30, 2024, the City recognized pension expense in the amounts of $341,727 for CalPERS plan.

The expected average remaining service lifetime (“EARSL”) is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired). The EARSL for PERF C for the measurement period is 3.8 years, which was obtained by dividing the total service years 2022-23 of 600,538 (the sum of remaining service lifetimes of the active employees) by 160,073 (the total number of participants: active, inactive, and retired) in PERF C. Inactive employees and retirees have remaining service lifetimes equal to 0.

Total future service is based on the members’ probability of decrementing due to an event other than receiving a cash refund.

City of Cudahy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
51 Note 9 – Defined Benefit Pension Plan (Continued)
B. Pension Liability, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued)
Proportionate Share of Net Pension Liability and Pension Expense At June 30, 2024, the City has deferred outflows and deferred inflows of resources related to pensions as follows:

Deferred outflows Deferred inflows
of Resources of Resources
Contribution made after the measurement date 665,150 $ - $ Changes of assumptions 274,646 -
Difference between expected and actual experience 232,389 (36,050) Net difference between projected and actual earning
on pension plan investments 736,529 -
Adjustment due to differences in proportions - (286,374) Difference between the City's contributions and
proportionate share of contributions 108,251 (218,407)
Total $ (540,831) 2,016,965 $
$665,150 reported as deferred outflows of resources related to pensions for the fiscal year ended June 30, 2024, resulting from the City’s contributions subsequent to the measurement date will be recognized as a reduction of the collective net pension liability in the year ending June 30, 2025.

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

Deferred
Outflows/(Inflows)
Year Ending of Resources
2025 90,734 $
2026 115,351
2027 583,765
2028 21,134
2029 -
Total 810,984 $
C. Payable to the Pension Plan
As of June 30, 2024, the City did not have outstanding amounts of contributions due to the pension plan.

City of Cudahy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
52 Note 10 – Other Postemployment Benefits (“OPEB”)
A. General Information about the OPEB Plan
Plan Description
Integrated medical/prescription drug coverage is provided through CalPERS under the Public Employees' Medical and Hospital Care Act (PEMHCA). Employees may choose from a variety of HMO and PPO options.

The City pays 100% of the cost of PEMHCA coverage for active full-time employees, including coverage for spouse and dependent children. The City also pays a 0.36% of premium administrative charge for all active employees. The City offers the same medical plans to its eligible retirees as to its active employees, with the exception that once a retiree becomes eligible for Medicare (that is, reaches age 65), he or she must join a Medicare HMO or a Medicare Supplement plan under PEMHCA.

Certain employees become eligible to retire and receive City-paid healthcare benefits upon attainment of age 50 and 5 years of covered Public Employees' Retirement System (PERS) service, or by qualifying disability retirement status.

Benefits Provided
Benefits are paid for the lifetime of the retiree and, if applicable, the surviving spouse of the retiree.

Employees Covered Benefit Terms
At June 30, 2024 (the measurement date), the following employees were covered by the benefit terms:

Active employees 53
Inactive employees or beneficiaries currently receiving benefit 12 Inactive employees entitled to but not yet receiving benefit payment 9 Total 74
Funding Policy and Contributions
The City's contribution on behalf of all eligible retirees is the same as it is for active employees (100% of the cost of coverage for retiree, spouse and dependent children). The City has elected the equal contribution method, where the contribution will remain the same annually.

The City opened an irrevocable trust account with Public Agency Retirement Services (PARS). The contribution requirements of the City are established and may be amended by the City Council. The required contribution is based on pay-as-you-go financing requirements plus $100 thousand contribution to the trust which were payable from City assets from 2018/19 to 2021/22. There were no further pre-funding since July 1, 2022. For the fiscal year ended June 30, 2024, the City contributed $150,567 to the plan.

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

City of Cudahy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
53 Note 10 – Other Postemployment Benefits (“OPEB”) (Continued) B. Net OPEB Liability (Continued)
Actuarial Methods and Assumptions Used to Determine Total OPEB Liability The total OPEB liability for the June 30, 2023 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:

Actuarial Cost Method Entry-Age Normal Cost Method
Inflation 2.50%
Salary Increases 2.75% per year
Discount Rate 4.27% at June 30, 2024

5.50% at June 30, 2023
Medical Trend
Dental and vision trend 2.75% per year
Family Coverage at
retirement
Mortality Rate Table
Non-Medicare - 7.90% for 2026, decreasing to an ultimate rate of

3.45% in 2076
25% of future retirees cover non-spouse family members until retiree age 65
CalPERS 2000-2019 Experience Study
Medicare (Non-Kaiser) - 6.90% for 2026, decreasing to an ultimate rate of 3.45% in 2076
Medicare (Kaiser) - 5.56% for 2026, decreasing to an ultimate rate of 3.45% in 2076
Discount Rate
The discount rate used to measure the total OPEB liability was 4.27% at June 30,2024 measurement date.

C. Change in the Net OPEB Liability
The changes in the total OPEB Liability for the plan are as follows:

Total OPEB Fiduciary Net Net OPEB
Liability Position Liability
(a) (b) ( c ) = (a) - (b)
Balance at June 30, 2023 2,290,332 $ 439,895 $ 1,850,437 $ Changes Recognized for the Measurement Period:

Service cost 62,854 - 62,854
Interest 125,298 - 125,298
Changes of benefit terms - - -
Difference between expected and actual experience 602,661 - 602,661 Changes of assumptions 539,854 - 539,854
Contributions from the employer - 150,567 (150,567)
Contributions from the employee - - -
Actual investment income - 50,234 (50,234)
Actual payments from trust - - -
Actual payments from employer (150,086) (150,086) -
Administrative expenses - (1,618) 1,618
Net Changes 1,180,581 49,097 1,131,484
Balance at June 30, 2024 3,470,913 $ 488,992 $ 2,981,921 $ Increase (Decrease)

City of Cudahy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
54 Note 10 – 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 net OPEB liability of the City, as well as what the City’ net OPEB liability would be if it were calculated using a discount rate that is one percentage point lower (3.27%) or one percentage point higher (5.27%) follows:

Discount Rate -1% Current Discount Discount Rate +1%
Measurement Date (3.27%) Rate (4.27%) (5.27%)
June 30, 2024 3,447,848 $ 2,981,921 $ 2,597,874 $
Plan's Net OPEB Liability
Sensitivity of the Net OPEB liability to Changes in the Healthcare Cost Trend Rates The net OPEB liability of the City, as well as what the City's net OPEB liability would be if it were calculated using healthcare cost trend rates that are one percentage point lower or one percentage point higher than current healthcare cost trend rates follows:

Measurement Date 1% Decrease Current Trend 1% Increase
June 30, 2024 2,796,262 $ 2,981,921 $ 3,135,041 $
Plan's Net OPEB Liability
D. OPEB Expense and Deferred Inflows and Outflows of Resources Related to OPEB For the year ended June 30, 2024, the City recognized OPEB expense of $149,312 with details as follows:

Service Cost $ 62,854
Interest on Total OPEB Liability 125,298
Projected earnings on investments (24,163)
Administrative expense 1,618
Recognition of deferred outflows/(inflows):

Experience 32,247
Assumptions (47,923)
Asset returns (619)
Total OPEB Expense $ 149,312
The City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred outflows Deferred inflows
of resources of resources
Difference between expected and actual experience 618,455 $ (124,892) $ Changes in assumptions 552,027 (138,915)
Difference between projected and actual
return on assets - (5,172)
Total 1,170,482 $ (268,979) $

City of Cudahy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
55 Note 10 – Other Postemployment Benefits (“OPEB”) (Continued) D. OPEB Expense and Deferred Inflows and Outflows of Resources Related to OPEB (Continued) Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in future OPEB expenses based on expected average remaining service lifetime for the measurement periods as follows:

Deferred
Year Ending Outflows/(Inflows)
June 30 of Resources
2025 (6,310) $
2026 63,654
2027 75,132
2028 76,500
2029 114,875
Thereafter 577,652
Total 901,503 $
Note 11 – Restricted Net Position
At June 30, 2024, the restricted net position consists of the following:

Governmental
Activities
Restricted for:

Transportation 8,589,420 $
Community development 7,916,739
Community services 1,904,327
Capital projects 2,085,814
Other purposes 22,879
$ 20,519,179
Note 12 – Net Investment in Capital Assets
The investment in capital assets is calculated as follows:

Governmental
Activities
Total capital assets, net 37,866,790 $
Unspent capital debt proceed 2,085,814
Capital related debt (5,231,259)
Net investment in capital assets 34,721,345 $

City of Cudahy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
56 Note 13 – Changes to or within the Financial Reporting Entity and Error Correction During the fiscal year ended June 30, 2024, changes to or within the financial reporting entity and error correction resulted in adjustments to and restatements of beginning net position and fund balances, as follows:

July 1, 2023 Change to or
As Previously within the Finanial Error July 1, 2023
Reported Reporting Entity (a) Correction (b) As Restated Governmental-Wide
Governmental Activities 50,504,096 $ - $ 333,691 $ 50,837,787 $ Total Primary Government $ - 50,504,096 $ 333,691 $ 50,837,787 $ Governmental-Funds
Major Funds:

General Fund 11,656,028 $ - $ - $ 11,656,028 $
Housing Authority Special Revenue Fund 1,782,945 - 3,189,970 4,972,915 Other Grants Special Revenue Fund - - - -
State Gas Tax Special Revenue Fund - 1,545,194 - 1,545,194 Nonmajor Funds 10,451,778 (1,545,194) 333,691 9,240,275 Total Governmental Funds $ - 23,890,751 $ 3,523,661 $ 27,414,412 $ (a) The State Gas Tax Special Revenue Fund was previously reported as a nonmajor fund. The fund meets the quantitative threshold requiring the fund to be reported as a major fund for the fiscal year ended June 30, 2024. The changes to or within the financial reporting entity resulted in restatement of beginning fund balance is shown in the table above.
(b) The Housing Authority Special Revenue Fund beginning fund balance was restated to report $3,189,970 notes receivable previously recorded as unavailable revenue in the restricted fund balance. Additionally, the Governmental Activities beginning net position was restated to correct recognition of interest on notes receivable for Cal Home Special Revenue Fund of $78,886 and CDBG Special Revenue Fund of $254,805, moving it from unearned revenue to the beginning restricted fund balance.

City of Cudahy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
57 Note 14 – Fund Balance Classifications
At June 30, 2024, fund balances are classified in the governmental funds as follows:

Housing Other Grants State Gas Nonmajor Total
General Authority Special Special Tax Special Governmental Governmental Fund Revenue Fund Revenue Fund Revenue Fund Funds Funds Nonspendable:

Prepaid items $ 77,459 $ - $ - $ - $ 36,055 $ 113,514
Total nonspendable 77,459 - - - 36,055 113,514
Restricted:

Transportation - - - 8,589,420 - 8,589,420
Community development 5,058,383 - - 2,858,356 7,916,739 Community services - - 1,874,915 - 29,412 1,904,327
Capital projects 2,085,814 - - - 2,085,814 -
Other purposes - - - - 22,879 22,879
Total restricted 2,085,814 5,058,383 1,874,915 - 11,500,067 20,519,179 Committed:

Strategic Plan Implementation
Programs 900,000 - - - 900,000 -
Total committed 900,000 - - - 900,000 -
Unassigned: 4,481,609 - (34,501) - 4,447,108 -
Total fund balance $ 7,544,882 $ 5,058,383 $ (34,501) $ 1,874,915 $ 11,536,122 $ 25,979,801 Note 15 – Commitments and Contingencies
The City has an outstanding commitment of $900,000 for the Implementation of Strategic Plan Implementation Programs as of June 30, 2024.

The City is a defendant in a number of lawsuits, which have arisen in the normal course of business. While substantial damages are alleged in some of these actions, their outcome cannot be predicted with certainty.

Amounts received or receivable from granting agencies are subject to audit and adjustment by grantor agencies.

While no matters of noncompliance were disclosed by the audit of the financial statements or single audit of the Federal grant programs, grantor agencies may subject grant programs to additional compliance tests, which may result in disallowed costs. In the opinion of management, future disallowances of current or prior grant expenditures, if any, would not have a material adverse effect on the financial position of the City.

Note 16 – Successor Agency
The accompanying financial statements also include the Private-purpose Trust Fund for the Successor Agency to the City’s former Redevelopment Agency (“Successor Agency”). The City, as the Successor Agency, serves in a fiduciary capacity, as custodian for the assets and to wind down the affairs of the former Redevelopment Agency. Its assets are held in trust for the benefit of the taxing entities within the former Redevelopment Agency’s boundaries and as such, are not available for the use of the City.

In 2014, the State Controller’s Office ordered the transfer of assets from Cudahy Economic Development Corporation (CEDC) back to the Successor Agency. In 2015, the Board of Directors of CEDC and the Oversight Board to the Successor Agency approved the asset transfer agreement. The assets were returned to the Successor Agency with the recording of quit claim deeds on October 19, 2015.

City of Cudahy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
58 Note 16 – Successor Agency (Continued)
Disclosures related to long-term liabilities of the Successor Agency are as follows:

Long-term Debt
The summary of changes in the Successor Agency’s long-term liabilities for the year ended June 30, 2024 is as follows:

Balance Balance Due within Due in more
July 1, 2023 Additions Deletions June 30, 2024 One Year One Year 2018 Series Tax Allocation
Refunding Bonds $ 8,325,000 $ (1,540,000) - $ $ 6,785,000 $ 1,590,000 $ 5,195,000 Notes Payable 1,409,928 (1,409,928) - - - -
County Tax Deferral 1,408,430 70,421 1,478,851 - 1,478,851 - Total $ 11,143,358 $ 70,421 $ (2,949,928) $ 8,263,851 $ 1,590,000 $ 6,673,851 Taxable Tax Allocation Refunding Bonds, Series 2018
In September 2018, the Successor Agency to the Former Cudahy Community Development Commission issued the Taxable Tax Allocation Refunding Bonds, Series 2018 in the amount of $14,030,000 to (i) refund certain obligations of the Cudahy Community Development Commission (the “Former Agency”) in the aggregate principal amount of $16,460,000, (ii) to purchase a municipal bond insurance policy (the “Policy”) with respect to certain 2018 Bonds; (iii) to purchase a municipal debt service reserve insurance policy for the 2018 Bonds (the “Reserve Policy”), and (iv) to pay certain costs of issuance of the 2018 Bonds. Accordingly, the old debt was defeased and replaced by the new debt. The difference between the reacquisition price and the net carrying amount of the old debt of $1.8 million was reported as deferred loss on debt refunding and is being amortized as a component of interest expense over the remaining life of the new debt.

Interest on the 2018 Taxable Tax Allocation Refunding Bonds which ranges from 2.8% to 3.8% is payable semiannually on April 1 and October 1 of each year, commencing April 1, 2019, until maturity. The Bonds are payable from the Pledged Tax Revenues deposited in the Redevelopment Property Tax Trust Fund and payable from amounts on deposit therein after payments of certain County of Los Angeles administrative costs and payments to certain taxing agencies.

The 2018 Bonds are insured. In the event of default of the payment of the scheduled principal of or interest on the Insured Bonds when all or some becomes due, the Trustee on behalf of any owner of the Insured Bonds shall have a claim under the Policy for such payments.

The outstanding balance of the 2018 bonds as of June 30, 2024 was $6,785,000.

The future annual debt service requirements for 2018 Taxable Tax Allocation Refunding Bonds are as follows:

Fiscal Year Principal Interest Total
2025 1,590,000 239,418 1,829,418
2026 1,640,000 181,273 1,821,273
2027 1,700,000 119,210 1,819,210
2028 1,855,000 53,271 1,908,271
Total 6,785,000 $ $ 593,172 $ 7,378,172

City of Cudahy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
59 Note 16 – Successor Agency (Continued)
Pledged Future Revenues
The City pledged future tax revenues associated with bond issuance for Series 2018 Tax Allocation Refunding Bonds.

These debt issuance and pledged tax revenues are reported in the Private-Purpose Trust Fund (fiduciary funds). The pledged tax revenues are to be used solely for the repayment of principal and interest on the bonds until they are paid in full through 2028 and are not available for other purposes during the duration that the bonds are outstanding. The total principal and interest remaining is approximately $7,378,172. Management expects that pledged tax revenues will be sufficient to make future principal and interest payments on the bonds.

Note Payable
In 1986-1987, the Agency borrowed a total of $1,000,000 from a financial institution for costs associated with a development project (Parcel A). Payments are due in annual installments equal to the incremental difference between sales tax revenue from Parcel A as of the 1984-1985 tax year and sales tax revenues for each subsequent fiscal year.

Sales tax incremental revenue from Parcel A is insufficient to make loan payments. At June 30, 2024, the City wrote off the note due to the absence of supporting documentation in City files, previous auditor’s correspondence with Downey Savings and Loan that no accounts existed in the Bank’s records, or inclusion in the Recognized Obligation Payment Schedule (ROPS) for several years.

County Deferrals
The City, Agency and County entered into agreements whereby the County will defer tax increment generated within the project area to meet the Agency's debt service obligations. The outstanding balance accrues interest of five percent (5%) compounded annually and shall be repaid with the property tax revenues received by the Agency in excess of its debt service payment requirements. The County Deferral is recorded as tax revenue when earned and debt in the fiduciary funds. Outstanding balance of the County Tax Deferral as of June 30, 2024 was $1,478,851.

60 City of Cudahy
Basic Financial Statements
For the Year Ended June 30, 2024
(This page is intentionally left blank)

REQUIRED SUPPLEMENTARY

INFORMATION (UNAUDITED)
61

City of Cudahy
Basic Financial Statements
For the Year Ended June 30, 2024
(This page is intentionally left blank)
62

Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Taxes $ 4,349,605 $ 4,349,605 5,592,531 $ 1,242,926
Licenses and permits 5,209,552 4,440,977 2,581,906 (1,859,071) Intergovernmental 3,479,191 3,573,904 3,588,929 15,025
Charges for services 265,500 270,500 145,985 (124,515)
Fines, forfeitures and penalties 216,000 211,500 451,288 239,788 Use of money and property 146,200 188,700 665,196 476,496 Other revenue 479,000 479,000 376,950 (102,050)
Total revenues 14,145,048 13,514,186 13,402,785 (111,401) EXPENDITURES:

Current:

General government 5,969,892 6,045,143 5,057,610 987,533 Public safety 5,099,847 5,128,873 4,965,840 163,033
Public works 1,364,701 1,462,978 1,276,315 186,663
Community services 2,032,454 1,671,395 1,339,916 331,479 Community development 2,132,272 2,309,367 1,218,731 1,090,636 Capital outlay 5,269,390 5,269,390 3,046,131 2,223,259
Debt service:

Interest and fiscal charges 379,167 379,167 252,778 126,389 Total expenditures 22,247,723 22,266,313 17,157,321 5,108,992

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (8,102,675) (8,752,127) (3,754,536) 4,997,591 OTHER FINANCING SOURCES (USES):

Transfers in - - 430,542 430,542
Transfers out (574,638) (574,638) (787,152) (212,514)
Total other financing sources (uses) (574,638) (574,638) (356,610) 218,028 NET CHANGE IN FUND BALANCE $ (9,326,765) (8,677,313) $ (4,111,146) 5,215,619 $ FUND BALANCE:

Beginning of year 11,656,028
End of year $ 7,544,882
Required Supplementary Information (Unaudited)
Budgetary Comparison Schedule
City of Cudahy
For the Year Ended June 30, 2024
General Fund
63

Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Intergovernmental $ 12,480,393 $ 12,864,793 $ 1,525,549 $ (11,339,244) Total revenues 12,480,393 12,864,793 1,525,549 (11,339,244) EXPENDITURES:

Current:

Community development 3,233,699 3,508,699 658,799 2,849,900 Capital outlay 9,275,744 9,385,144 909,053 8,476,091
Total expenditures 12,509,443 12,893,843 1,567,852 11,325,991

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (29,050) (29,050) (42,303) (13,253) OTHER FINANCING SOURCES:

Transfers in - - 7,802 7,802
Total other financing sources - - 7,802 7,802
NET CHANGE IN FUND BALANCE $ (29,050) $ (29,050) (34,501) $ (5,451) FUND BALANCE:

Beginning of year -
End of year $ (34,501)
City of Cudahy
For the Year Ended June 30, 2024
Required Supplementary Information (Unaudited)
Budgetary Comparison Schedule
Other Grants Special Revenue Fund
64

Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Intergovernmental $ 1,212,400 $ 1,212,400 $ 1,208,629 $ (3,771) Use of money and property 8,000 8,000 65,062 57,062
Total revenues 1,220,400 1,220,400 1,273,691 53,291
EXPENDITURES:

Current:

Community development 3,038,451 3,038,451 1,327,855 1,710,596 Total expenditures 3,038,451 3,038,451 1,327,855 1,710,596

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (1,818,051) (1,818,051) (54,164) 1,763,887 OTHER FINANCING SOURCES:

Transfers in 585,683 585,683 383,885 (201,798)
Total other financing sources 585,683 585,683 383,885 (201,798) NET CHANGE IN FUND BALANCE $ (1,232,368) $ (1,232,368) 329,721 $ 1,562,089 FUND BALANCE:

Beginning of year 1,545,194
End of year $ 1,874,915
City of Cudahy
Required Supplementary Information (Unaudited)
Budgetary Comparison Schedule
For the Year Ended June 30, 2024
State Gas Tax Special Revenue Fund
65

City of Cudahy
Basic Financial Statements
For the Year Ended June 30, 2024
(This page is intentionally left blank)
66

Note 1 - Budgetary Control and Accounting Policy





TheCity Council approves total budgeted appropriations and any amendments to increase appropriations throughout the budget period. The legal level of control is considered to be at the fund level since management can reassign resources within a fund without special approval from City Council.

The basis for budgeting in the General Fund, Special Revenue Funds is substantially consistent with U.S. GAAP, except that payments made on financing leases are recorded as functional expenditures. The lease agreements are not budgeted as a financing source and the acquisition price of the acquired asset is not budgeted as an expenditure.

The budget is formally integrated into the accounting system and employed as a management control tool during the year. At fiscal year-end, unexpended appropriations lapse, with the exception of capital improvements. All appropriations for capital improvements are carried forward until such time as the project is completed or terminated by action of the City Council.

The budget is formally integrated into the accounting system and employed as a management control tool during the year. At fiscal year-end, unexpended appropriations lapse, with the exception of capital improvements. All appropriations for capital improvements are carried forward until such time as the project is completed or terminated by action of the City Council.

Periodically, budget review sessions will be held by the City Council. Necessary adjustments to expenditures and available revenue sources will be reviewed and approved by the City Council.

Preparation of the budget consists of the following steps:

City of Cudahy
Required Supplementary Information (Unaudited)
Notes to the Budgetary Comparison Schedule
For the Year Ended June 30, 2024
The City adopts annual budgets for the General Fund and Special Revenue Funds. The Successor Agency's operating expenditures are adopted separately and not included in the City Budgeting process. The City does not have Capital Projects Funds, rather, capital projects are budgeted in the appropriate special revenue funds. During the year ended June 30, 2024, the City did not adopt budgets for the Housing Authority Special Revenue Fund, County Park Bond Special Revenue Funds, Recycling Conservation Grants Special Revenue Fund, Prop 1B Special Revenue Fund, ARPA (other grants) Special Revenue Fund and Cal Home Special Revenue Fund.

Departments submit budget estimates to the Finance Department for review and input into the excel budget worksheets.

The City Manager issues budget guidelines.

The City Manager issues a budget calendar.

Departments submit the percentage allocation of employee salaries and benefits to various activities (special funding) based on projected time spent on these activities.

The Personnel Department calculates salary and benefit costs and allocates them to activities based on the department submittals. 67

Measurement Period Classic Second Tier PERPA Classic Second Tier PERPA 2015-16 Proportion of the Net Pension Liability 0.033470% 0.000010% 0.000000% 0.070240% 0.000510% 0.000170% 0.090580% Proportionate Share of the Net Pension Liability 2,082,443 $ $ 4,983 $ 2,626,208 140 $ $ 534 $ 3,146,658 (757) $ Covered Payroll $ 628,845 $ 320,891 $ 88,443 $ 463,703 $ 452,647 $ 257,941 $ 1,174,291 Proportionate share of the net pension liability
as a percentage of its covered payroll 331.15% 1.55% 0.16% 566.36% 0.12% -0.29% 267.96% Plan Fiduciary net position as a percentage of
the total pension liability 79.87% 83.03% 83.05% 72.59% 99.23% 103.32% 68.73% Notes to Schedule:
2014-15
Benefit Changes: There were no changes in benefits.
2013-14
For the Year Ended June 30, 2024
Changes of Assumptions: No change in 2023. Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement 2020 through 2021.

Last Ten Fiscal Years
City of Cudahy
Required Supplementary Information (Unaudited)
Schedule of the City’s Proportionate Share of the Net Pension Liability and Related Ratios 68

Measurement Period 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 Proportion of the Net Pension Liability 0.029050% 0.090810% 0.089930% 0.089320% 0.133980% 0.037250% 0.036460% Proportionate Share of the Net Pension Liability 3,539,977 $ $ 3,422,376 $ 3,601,385 $ 3,767,399 $ 2,544,002 $ 4,302,147 $ 5,449,042 Covered Payroll $ 1,179,459 $ 1,325,975 $ 1,368,001 $ 1,502,899 $ 1,270,525 $ 1,306,100 $ 1,342,670 Proportionate share of the net pension liability
as a percentage of its covered payroll 300.14% 258.10% 263.26% 250.68% 200.23% 329.39% 405.84% Plan Fiduciary net position as a percentage of
the total pension liability 69.21% 70.91% 67.61% 70.07% 80.28% 69.05% 68.61% For the Year Ended June 30, 2024
Last Ten Fiscal Years
City of Cudahy
Required Supplementary Information (Unaudited)
Schedule of the City’s Proportionate Share of the Net Pension Liability and Related Ratios (Continued) 69

2016-17 2017-18
Classic PEPRA Classic PEPRA
Actuarially determined contribution 118,139$ 12,145$ 73,439$ 14,443$ 91,846$ 101,829$ Contributions in relation to
the actuarially determined contribution1 (118,139) (12,145) (73,439) (14,443) (91,846) (101,829) Contribution deficiency (excess) -$ -$ -$ -$ -$ -$
Covered payroll2 949,736$ 88,443$ 916,350$ 257,941$ $ 1,179,459 1,325,975$ Contributions as a percentage of covered payroll 12.44% 13.73% 8.01% 5.60% 7.79% 7.68% Notes to Schedule:

Change in Benefit Terms: There were no changes in benefit term.

Changes of Assumptions: No change in 2023. Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement 2020 through 2021. 2 Includes one year's payroll growth using 2.80 percent payroll growth for fiscal year ended June 30, 2022-24; 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-21; 3.00 percent payroll growth assumption for fiscal years ended June 30, 2014-17.

California Public Employees' Retirement System ("CalPERS") - Miscellaneous Plan Last Ten Fiscal Years
City of Cudahy
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions
For the Year Ended June 30, 2024
2014-15 2015-16
1 Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions. 70

2018-19 2019-20 2020-21 2021-22 2022-23 2023-2024
Actuarially determined contribution 103,577$ 112,357$ 109,592$ 145,192$ 560,350$ 665,150$ Contributions in relation to
the actuarially determined contribution1 (103,577) (112,357) (109,592) (145,192) (560,350) (665,150) Contribution deficiency (excess) -$ -$ -$ -$ -$ -$
Covered payroll2 $ 1,502,899$ 1,368,001 1,270,525$ 1,306,100$ 1,342,670$ 1,380,265$ Contributions as a percentage of covered payroll 7.57% 7.48% 8.63% 11.12% 41.73% 48.19% City of Cudahy
Last Ten Fiscal Years
California Public Employees' Retirement System ("CalPERS") - Miscellaneous Plan Required Supplementary Information (Unaudited) (Continued) Schedule of Contributions - Pensions (Continued)
For the Year Ended June 30, 2024
71

Measurement period 2017-181 2018-19 2019-20 2020-21 2021-22 Total OPEB liability
Service cost 121,259$ 118,228$ 83,187$ 71,216$ 73,353$
Interest 98,653 106,800 133,413 118,018 121,345
Changes of benefit terms 441 - - - -
Changes of assumptions (101,442) (609,512) (58,153) - 86,669 Differences between expected and actual experience - - (277,197) - 100,010 Experience (Gains)/ Losses - - - - -
Benefit payments, including refunds of employee contributions (110,633) (113,023) (120,236) (131,500) (140,317) Net change in total OPEB liability 8,278 (497,507) (238,986) 57,734 241,060 Total OPEB liability - beginning 2,689,713 2,697,991 2,200,484 1,961,498 2,019,232 Total OPEB liability - ending (a) $ 2,200,484$ 2,697,991 1,961,498$ 2,019,232$ 2,260,292$ OPEB fiduciary net position
Contributions - employer -$ 213,280$ 220,541$ 231,834$ 240,669$ Contributions - employee - - - - -
Investment income - 1,149 8,394 51,049 (46,070)
Benefit payments, including refunds of employee contributions - (113,023) (120,236) (131,500) (140,317) Other - (257) (581) (977) (2,454)
Net change in plan fiduciary net position - 101,149 108,118 150,406 51,828 Plan fiduciary net position - beginning - - 101,149 209,267 359,673 Plan fiduciary net position - ending (b) -$ 101,149$ 209,267$ 359,673$ 411,501$ Net OPEB liability - ending (a) - (b) $ 2,099,335$ 2,697,991 1,752,231$ 1,659,559$ 1,848,791$ Plan fiduciary net position as a percentage
of the total OPEB liability 0.00% 4.60% 10.67% 17.81% 18.21% Covered-employee payroll 720,987$ $ 1,368,001 1,502,899$ 1,502,899$ 1,613,163$ Net OPEB liability as a percentage of covered-employee payroll 374.21% 153.46% 116.59% 110.42% 115% For the Year Ended June 30, 2024
Last Ten Fiscal Years
1 Historical information is presented only for measurement periods after GASB 75 was implemented in 2017-2018.

City of Cudahy
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Other Postemployment Benefits Liability and Related Ratios 72

Measurement period 2022-23 2023-24
Total OPEB liability
Service cost 61,172$ 62,854$
Interest 123,430 125,298
Changes of benefit terms - -
Changes of assumptions - 539,854
Differences between expected and actual experience - 602,661 Experience (Gains)/ Losses - -
Benefit payments, including refunds of employee contributions (154,562) (150,086) Net change in total OPEB liability 30,040 1,180,581
Total OPEB liability - beginning 2,260,292 2,290,332
Total OPEB liability - ending (a) $ 3,470,913$ 2,290,332 OPEB fiduciary net position
Contributions - employer 155,048$ 150,567$
Contributions - employee - -
Investment income 29,441 50,234
Benefit payments, including refunds of employee contributions (154,562) (150,086) Other (1,533) (1,618)
Net change in plan fiduciary net position 28,394 49,097 Plan fiduciary net position - beginning 411,501 439,895 Plan fiduciary net position - ending (b) 439,895$ 488,992$ Net OPEB liability - ending (a) - (b) $ 2,981,921$ 1,850,437 Plan fiduciary net position as a percentage
of the total OPEB liability 19.21% 14.09%
Covered-employee payroll 2,932,703 3,634,444
Net OPEB liability as a percentage of covered-employee payroll 63% 82% For the Year Ended June 30, 2024
Last Ten Fiscal Years
City of Cudahy
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Other Postemployment Benefits Liability and Related Ratios (Continued) 73

Fiscal Year: 2017-181 2018-19 2019-20 2020-21 2021-22
Actuarially Determined Contribution2 110,633$ 113,023$ 197,212$ 203,407$ 209,797$ Contribution in Relation to the Actuarially Determined Contribution (110,633) (213,280) (220,541) (231,834) (240,669) Contribution Deficiency (Excess) -$ (100,257) $ $ (23,329) $ (28,427) $ (30,872) Covered-employee Payroll 720,987$ $ 1,368,001 1,502,899$ 1,502,899$ 1,613,163$ Contributions as a Percentage of Covered-employee Payroll 15.34% 15.59% 14.67% 15.43% 14.92% 2 The actuarially determined contribution was calculated based on annual required benefit payments. 1 Historical information is presented only for measurement periods after GASB 75 was implemented in 2017-18.

Other Postemployment Benefits Plan
For the Year Ended June 30, 2024
Last Ten Fiscal Years
City of Cudahy
Required Supplementary Information (Unaudited)
Schedule of Contributions - Other Postemployment Benefits Plan 74

Fiscal Year: 2022-23 2023-24
Actuarially Determined Contribution2 207,954$ 210,904$
Contribution in Relation to the Actuarially Determined Contribution (155,048) (150,567) Contribution Deficiency (Excess) 52,906$ 60,337$
Covered-employee Payroll $ 3,634,444$ 2,932,703
Contributions as a Percentage of Covered-employee Payroll 5.29% 4.14% Other Postemployment Benefits Plan
For the Year Ended June 30, 2024
Last Ten Fiscal Years
City of Cudahy
Required Supplementary Information (Unaudited)
Schedule of Contributions - Other Postemployment Benefits Plan (Continued) 75

City of Cudahy
Basic Financial Statements
For the Year Ended June 30, 2024
(This page is intentionally left blank)
76

SUPPLEMENTARY INFORMATION
77

City of Cudahy
Basic Financial Statements
For the Year Ended June 30, 2024
(This page is intentionally left blank)
78

Permanent Local Housing Authority (PHLA) - To account for housing-related projects and programs that assist in addressing the unmet housing needs of the community.

Development Impact Fees Special Revenue Fund - To account for monies received from developers restricted to finance the acquisition and develop new parkland space. These monies are restricted under the Quimby Act by ordinance and require the dedication of land or impose a requirement of the payment of fee in lieu.

Surface Transportation Program Local (STPL) Special Revenue Fund - To account for Federal, state, and local Surface Transportation Program funds received from Los Angeles County Metropolitan Transportation Authority for transportation related projects.

Community Development Block Grant (CDBG) Special Revenue Fund - To account for expenses of the Community Development Block Grant received through the County of Los Angeles.

Community Benefit Fund Special Revenue Fund - To account for revenues and expenses for the Community Benefits Program under various Commercial Cannabis Development Agreements.

TDA – Transportation Development Special Revenue Fund - To account for funds received from the Transportation Development Authority for transport projects.

Street Lighting Special Revenue Fund - To account for revenues and costs associated with the City’s street lighting program.

Cal Home Special Revenue Funds - To account for transactions funded by the Cal Home program.

NONMAJOR

GOVERNMENTAL FUNDS
Measure R Special Revenue Fund - To account for revenues and expenditures for projects from a voter-approved sales tax measure (Measure R) for public transportation purposes.

Prop B1 Local Street Improvements Special Revenue Fund - Prop 1B came from bond proceeds issued to fund maintenance and improvement of local streets and roads. The City has closed this fund during the fiscal year ended June 30, 2024.

Proposition A Special Revenue Fund - To account for revenues and expenditures for projects from a voter-approved sales tax override for public transportation purposes.

Measure M Special Revenue Fund - To account for revenues and expenditures for Measure M Local Return money from LACMTA that are restricted for specific use.

Air Quality Improvement District (AQMD) Special Revenue Fund - To account for the additional vehicle registration fees received from Southern California Air Quality Management District in accordance with AB 2766, as authorized by the California Clean Air Act of 1988.

Recycling Conservation Grants Special Revenue Fund - To account for revenue and expenditure pertaining to recycling grants.The City has closed this fund during the fiscal year ended June 30, 2024.

Proposition C Special Revenue Fund - To account for financial transactions in accordance with Proposition C of the Local Transit Assistance Act.

Measure W Special Revenue Fund - To account for the Measure W Funds and expenditure allowable under the Measure W – Safe, Clean Water Program.

County Park Bond Special Revenue Fund -To account for projects and grants funded by the County Park Bond Act.

COPS Special Revenue Fund - To account for financial transactions in accordance with grant requirements from the California Office of Criminal Justice.
79

City of Cudahy
Basic Financial Statements
For the Year Ended June 30, 2024
(This page is intentionally left blank)
80

Prop 1B
Local Street
Improvements Proposition A Proposition C Measure M
ASSETS
Cash and investments - $ 1,475,058 $ 1,564,963 $ 2,214,043 $ Taxes receivable - - 38,557 32,882
Grants receivable - - - -
Notes receivable - - - -
Interest receivable - - - -
Prepaid items - 9,885 26,170 -
Total assets $ 1,484,943 - $ 1,629,690 $ 2,246,925 $
Liabilities:

Accounts payable - $ 75,278 $ 7,396 $ 9,731 $
Due to other governments - - - -
Due to other funds - - - -
Total liabilities 75,278 - 7,396 9,731
Fund Balances:

Nonspendable - 9,885 26,170 -
Restricted - 1,399,780 1,596,124 2,237,194
Total fund balances 1,409,665 - 1,622,294 2,237,194
Total liabilities and fund balances $ 1,484,943 - $ 1,629,690 $ 2,246,925 $ (Continued)
City of Cudahy
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2024

LIABILITIES AND FUND BALANCES
Special Revenue Funds
81

Recycling
Conservation
Measure R Measure W AQMD Grants
ASSETS
Cash and investments 2,508,428 $ 731,097 $ 123,602 $ 22,879 $ Taxes receivable 29,003 - - -
Grants receivable - - - -
Notes receivable - - - -
Interest receivable - - - -
Prepaid items - - - -
Total assets $ 731,097 2,537,431 $ 123,602 $ 22,879 $
Liabilities:

Accounts payable 14,089 $ 2,701 $ - $ - $
Due to other governments - - - -
Due to other funds - - - -
Total liabilities 2,701 14,089 - -
Fund Balances:

Nonspendable - - - -
Restricted 2,523,342 728,396 123,602 22,879
Total fund balances 728,396 2,523,342 123,602 22,879
Total liabilities and fund balances $ 731,097 2,537,431 $ 123,602 $ 22,879 $ (Continued)

LIABILITIES AND FUND BALANCES
City of Cudahy
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2024
Special Revenue Funds
82

TDA
County Park Transportation Street
COPS Bond Development Lightning
ASSETS
Cash and investments - $ 29,412 $ 30,637 $ 112,077 $
Taxes receivable - - - 570
Grants receivable - - - -
Notes receivable - - - -
Interest receivable - - - -
Prepaid items - - - -
Total assets $ 29,412 - $ 30,637 $ 112,647 $
Liabilities:

Accounts payable - $ - $ - $ 18,403 $
Due to other governments - - - -
Due to other funds - - - 94,244
Total liabilities - - - 112,647
Fund Balances:

Nonspendable - - - -
Restricted - 29,412 30,637 -
Total fund balances 29,412 - 30,637 -
Total liabilities and fund balances $ 29,412 - $ 30,637 $ 112,647 $ (Continued)
City of Cudahy
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2024
Special Revenue Funds

LIABILITIES AND FUND BALANCES
83

Development Surface
Impact Transportation
Cal Home Fees Program Local CDBG
ASSETS
Cash and investments 130,363 $ 917,975 $ 831,963 $ 555,693 $ Taxes receivable - - - -
Grants receivable - - - 79,673
Notes receivable 141,000 - - 226,148
Interest receivable 80,191 - - 24,700
Prepaid items - - - -
Total assets $ 351,554 $ 917,975 $ 831,963 $ 886,214
Liabilities:

Accounts payable $ 5,000 $ - $ 29,620 $ 3,385
Due to other governments 141,000 - - -
Due to other funds - - - -
Total liabilities 146,000 - 29,620 3,385
Fund Balances:

Nonspendable - - - -
Restricted 205,554 917,975 802,343 882,829
Total fund balances 205,554 917,975 802,343 882,829
Total liabilities and fund balances $ 351,554 $ 917,975 $ 831,963 $ 886,214 (Continued)
City of Cudahy
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2024

LIABILITIES AND FUND BALANCES
Special Revenue Funds
84

Community Permanent
Benefit Local Housing
Fund Authority Total
ASSETS
Cash and investments $ - - $ 11,248,190 $
Taxes receivable - - 101,012
Grants receivable 54,542 - 134,215
Notes receivable - - 367,148
Interest receivable - - 104,891
Prepaid items - - 36,055
Total assets $ 54,542 - $ 11,991,511 $
Liabilities:

Accounts payable $ - - $ 165,603 $
Due to other governments - - 141,000
Due to other funds 54,542 - 148,786
Total liabilities 54,542 - 455,389
Fund Balances:

Nonspendable - - 36,055
Restricted - - 11,500,067
Total fund balances - - 11,536,122
Total liabilities and fund balances $ 54,542 - $ 11,991,511 $ (Concluded)
June 30, 2024
City of Cudahy
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds

LIABILITIES AND FUND BALANCES
Special Revenue Funds
85

Prop 1B
Local Street
Improvements Proposition A Proposition C Measure M
REVENUES:

Taxes $ - - $ - $ 415,599 $
Licenses and Permits - - - -
Intergovernmental - 591,792 490,879 -
Charges for services - - 29 -
Use of money and property - 39,667 39,251 59,555
Total revenues 631,459 - 530,159 475,154
EXPENDITURES:

Current:

Public safety - - - -
Public works - - - -
Community development - - - 19,638
Community services - 429,474 76,400 31,576
Capital outlay - - - -
Debt service:

Principal retirement - - - -
Interest and fiscal charges - - - -
Total expenditures 429,474 - 76,400 51,214

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 201,985 - 453,759 423,940
OTHER FINANCING SOURCES (USES):

Transfers in - - 60,730 17,846
Transfers out (283) - - -
Proceeds from issuance of debt - - - -
Total other financing sources (uses) (283) - 60,730 17,846 NET CHANGES IN FUND BALANCES (283) 201,985 514,489 441,786 FUND BALANCES:

Beginning of year, as previously reported 283 1,207,680 1,107,805 1,795,408 Change n the financial reporting entity
(nonmajor to major fund) - - - -
Error correction - - - -
Beginning of year, as restated (Note 13) 283 1,207,680 1,107,805 1,795,408 End of year $ 1,409,665 - $ $ 1,622,294 $ 2,237,194
(Continued)
Special Revenue Funds
City of Cudahy
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds
For the Year Ended June 30, 2024
86

Recycling
Conservation
Measure R Measure W AQMD Grants
REVENUES:

Taxes - $ - $ - $ - $
Licenses and Permits - - - -
Intergovernmental 368,044 166,934 28,649 -
Charges for services - - - -
Use of money and property 66,453 16,165 - -
Total revenues 183,099 434,497 28,649 -
EXPENDITURES:

Current:

Public safety - - - -
Public works - 96,150 156,070 -
Community development 49,861 - - -
Community services - - - -
Capital outlay - - - -
Debt service:

Principal retirement - - 18,401 -
Interest and fiscal charges - - 10,265 -
Total expenditures 49,861 96,150 184,736 -

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 384,636 86,949 (156,087) -
OTHER FINANCING SOURCES (USES):

Transfers in 66,194 - - -
Transfers out - - - (662)
Proceeds from issuance of debt - 149,660 - -
Total other financing sources (uses) 66,194 149,660 - (662) NET CHANGES IN FUND BALANCES 450,830 86,949 (6,427) (662) FUND BALANCES:

Beginning of year, as previously reported 2,072,512 641,447 130,029 23,541 Change n the financial reporting entity
(nonmajor to major fund) - - - -
Error correction - - - -
Beginning of year, as restated (Note 13) 2,072,512 641,447 130,029 23,541 End of year $ 2,523,342 $ 728,396 $ 123,602 $ 22,879
(Continued)
Special Revenue Funds
City of Cudahy
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2024
87

TDA
County Park Transportation Street
COPS Bond Development Lightning
REVENUES:

Taxes - $ - $ - $ 73,070 $
Licenses and Permits - - - -
Intergovernmental 186,159 - - -
Charges for services - - - -
Use of money and property - - - 287
Total revenues - 186,159 - 73,357
EXPENDITURES:

Current:

Public safety 100,000 - - -
Public works - - - -
Community development - - - -
Community services - - 996 54,705
Capital outlay - - - 153,182
Debt service:

Principal retirement - - - -
Interest and fiscal charges - - - -
Total expenditures - 100,000 996 207,887

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES - 86,159 (996) (134,530)
OTHER FINANCING SOURCES (USES):

Transfers in - - - 134,530
Transfers out (305,984) - - -
Proceeds from issuance of debt - - - -
Total other financing sources (uses) (305,984) - - 134,530 NET CHANGES IN FUND BALANCES (219,825) - (996) -
FUND BALANCES:

Beginning of year, as previously reported 219,825 29,412 31,633 - Change n the financial reporting entity
(nonmajor to major fund) - - - -
Error correction - - - -
Beginning of year, as restated (Note 13) 219,825 29,412 31,633 - End of year $ - $ 29,412 $ 30,637 $ -
(Continued)
City of Cudahy
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2024
Special Revenue Funds
88

Development Surface State Gas Tax
Impact Transportation (Formerly
Cal Home Fees Program Local Nonmajor Fund)
REVENUES:

Taxes $ - - $ - $
Licenses and Permits - - -
Intergovernmental - 893,963 -
Charges for services - - -
Use of money and property 10,474 4,205 -
Total revenues 898,168 10,474 -
EXPENDITURES:

Current:

Public safety - - -
Public works - - -
Community development - - 23,096
Community services - - -
Capital outlay - 117,900 -
Debt service:

Principal retirement - - -
Interest and fiscal charges - - -
Total expenditures 117,900 - 23,096

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 780,268 10,474 (23,096)
OTHER FINANCING SOURCES (USES):

Transfers in - 64,579 -
Transfers out - - -
Proceeds from issuance of debt - - -
Total other financing sources (uses) 64,579 - -
NET CHANGES IN FUND BALANCES 844,847 10,474 (23,096)
FUND BALANCES:

Beginning of year, as previously reported 116,194 73,128 825,439 1,545,194 Change n the financial reporting entity
(nonmajor to major fund) - - (1,545,194) -
Error correction 78,886 - - -
Beginning of year, as restated (Note 13) 195,080 73,128 825,439 - End of year $ 205,554 $ 917,975 $ 802,343 $ -
(Continued)
City of Cudahy
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2024
Special Revenue Funds
89

Community Permanent
Benefit Local Housing
CDBG Fund Authority Total
REVENUES:

Taxes $ - - $ - $ 488,669 $
Licenses and Permits - 122,179 - 122,179
Intergovernmental 429,277 - 62,258 3,217,955
Charges for services - - - 29
Use of money and property - 1,434 - 237,491
Total revenues 123,613 429,277 62,258 4,066,323
EXPENDITURES:

Current:

Public safety - - - 100,000
Public works - - - 252,220
Community development 424,128 - 113,844 630,567
Community services - - - 593,151
Capital outlay 9,373 - - 280,455
Debt service:

Principal retirement - - - 18,401
Interest and fiscal charges - - - 10,265
Total expenditures - 433,501 113,844 1,885,059

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 123,613 (4,224) (51,586) 2,181,264 OTHER FINANCING SOURCES (USES):

Transfers in - - 51,586 395,465
Transfers out - (123,613) - (430,542)
Proceeds from issuance of debt - - - 149,660
Total other financing sources (uses) - (123,613) 51,586 114,583 NET CHANGES IN FUND BALANCES (4,224) - 2,295,847 -
FUND BALANCES:

Beginning of year, as previously reported 632,248 - 10,451,778 - Change n the financial reporting entity
(nonmajor to major fund) - - (1,545,194) -
Error correction 254,805 - 333,691 -
Beginning of year, as restated (Note 13) 887,053 - 9,240,275 - End of year $ 882,829 $ - $ 11,536,122 - $
(Concluded)
Special Revenue Funds
City of Cudahy
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2024
90

Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Intergovernmental $ 645,014 $ 645,014 $ 591,792 $ (53,222) Use of money and property 5,500 5,500 39,667 34,167
Total revenues 650,514 650,514 631,459 (19,055)
EXPENDITURES:

Current:

Community services 678,831 678,831 429,474 249,357
Total expenditures 678,831 678,831 429,474 249,357
NET CHANGE IN FUND BALANCE $ (28,317) $ (28,317) 201,985 $ 230,302 FUND BALANCE:

Beginning of year 1,207,680
End of year $ 1,409,665
City of Cudahy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Proposition A Special Revenue Fund
For the Year Ended June 30, 2024
91

Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Intergovernmental $ 535,022 $ 535,022 $ 490,879 $ (44,143) Charges for services 25,000 25,000 29 (24,971)
Use of money and property 3,500 3,500 39,251 35,751
Total revenues 563,522 563,522 530,159 (33,363)
EXPENDITURES:

Current:

Community services 710,965 710,965 76,400 634,565
Total expenditures 710,965 710,965 76,400 634,565

EXCESS OF REVENUES OVER
EXPENDITURES (147,443) (147,443) 453,759 601,202
OTHER FINANCING SOURCES:

Transfers in - - 60,730 60,730
Total other financing sources - - 60,730 60,730
NET CHANGE IN FUND BALANCE $ (147,443) $ (147,443) 514,489 $ 661,932 FUND BALANCE:

Beginning of year 1,107,805
End of year $ 1,622,294
City of Cudahy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Proposition C Special Revenue Fund
For the Year Ended June 30, 2024
92

Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Intergovernmental $ 401,267 $ 401,267 $ 368,044 $ (33,223) Use of money and property 10,500 10,500 66,453 55,953
Total revenues 411,767 411,767 434,497 22,730
EXPENDITURES:

Current:

Community development 434,438 434,438 49,861 384,577
Capital outlay 1,386,320 1,386,320 1,386,320 -
Total expenditures 1,820,758 1,820,758 49,861 1,770,897

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (1,408,991) (1,408,991) 384,636 1,793,627 OTHER FINANCING SOURCES:

Transfers in - - 66,194 66,194
Total other financing sources - - 66,194 66,194
NET CHANGE IN FUND BALANCE $ (1,408,991) $ (1,408,991) 450,830 $ 1,859,821 FUND BALANCE:

Beginning of year 2,072,512
End of year $ 2,523,342
City of Cudahy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Measure R Special Revenue Fund
For the Year Ended June 30, 2024
93

Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Taxes $ 454,769 $ 454,769 $ 415,599 $ (39,170)
Use of money and property 7,500 7,500 59,555 52,055
Total revenues 462,269 462,269 475,154 12,885
EXPENDITURES:

Current:

Community development 625,721 625,721 19,638 606,083
Community services 254,994 254,994 31,576 223,418
Total expenditures 880,715 880,715 51,214 829,501

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (418,446) (418,446) 423,940 842,386 OTHER FINANCING SOURCES:

Transfers in - - 17,846 17,846
Total other financing sources - - 17,846 17,846
NET CHANGE IN FUND BALANCE $ (418,446) $ (418,446) 441,786 $ 860,232 FUND BALANCE:

Beginning of year 1,795,408
End of year $ 2,237,194
City of Cudahy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Measure M Special Revenue Fund
For the Year Ended June 30, 2024
94

Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Intergovernmental $ 170,000 $ 170,000 $ 166,934 $ (3,066) Use of money and property - - 16,165 16,165
Total revenues 170,000 170,000 183,099 13,099
EXPENDITURES:

Current:

Community development 170,000 170,000 96,150 73,850
Total expenditures 170,000 170,000 96,150 73,850
NET CHANGE IN FUND BALANCE $ - $ - 86,949 $ 86,949
FUND BALANCE:

Beginning of year 641,447
End of year $ 728,396
City of Cudahy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Measure W Special Revenue Fund
For the Year Ended June 30, 2024
95

Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Intergovernmental $ 31,500 $ 31,500 $ 28,649 $ (2,851)
Total revenues 31,500 31,500 28,649 (2,851)
EXPENDITURES:

Current:

Public works 31,500 51,500 156,070 (104,570)
Debt service:

Principal retirement - - 18,401 (18,401)
Interest and fiscal charges - - 10,265 (10,265)
Total expenditures 31,500 51,500 184,736 (133,236)

EXCESS IF REVENUES OVER (UNDER)
EXPENDITURES - (20,000) (156,087) (136,087)
OTHER FINANCING SOURCES:

Transfers in - - 149,660 $ 149,660
Total other financing sources - - 149,660 149,660
NET CHANGE IN FUND BALANCE $ - $ (20,000) (6,427) $ 13,573 FUND BALANCE:

Beginning of year 130,029
End of year $ 123,602
City of Cudahy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual AQMD Special Revenue Fund
For the Year Ended June 30, 2024
96

Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Intergovernmental $ 186,159 $ 100,000 $ 186,159 $ 86,159 Total revenues 186,159 100,000 186,159 86,159
EXPENDITURES:

Current:

Public safety 100,000 100,000 100,000 -
Total expenditures 100,000 100,000 100,000 -

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 86,159 - 86,159 86,159
OTHER FINANCING USES:

Transfers out - - (305,984) (305,984)
Total other financing uses - - (305,984) (305,984)
NET CHANGE IN FUND BALANCE $ 86,159 $ - (219,825) $ (219,825) FUND BALANCE:

Beginning of year 219,825 ,
End of year $ -
City of Cudahy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Community Oriented Policing Services (COPS) Special Revenue Fund For the Year Ended June 30, 2024
97

Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Intergovernmental $ 26,117 $ 26,117 $ - (26,117)
Total revenues 26,117 26,117 - (26,117)
EXPENDITURES:

Commuinty services - 128,964 996 127,968
Total expenditures - 128,964 996 127,968
NET CHANGE IN FUND BALANCE $ 26,117 $ (102,847) (996) $ 101,851 FUND BALANCE:

Beginning of year 31,633
End of year $ 30,637
City of Cudahy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual TDA Transportation Development Special Revenue Fund
For the Year Ended June 30, 2024
98

Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Taxes $ 73,044 $ 73,044 $ 73,070 $ 26
Use of money and property - - 287 287
Total revenues 73,044 73,044 73,357 313
EXPENDITURES:

Current:

Community services - - 54,705 (54,705)
Capital outlay 73,044 73,044 153,182 (80,138)
Total expenditures 73,044 73,044 207,887 (134,843)

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES - - (134,530) (134,530)
OTHER FINANCING SOURCES:

Transfers in - - 134,530 134,530
Total other financing sources - - 134,530 134,530
NET CHANGE IN FUND BALANCE $ - $ - - $ -
FUND BALANCE:

Beginning of year -
End of year $ -
City of Cudahy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Street Lighting Special Revenue Fund
For the Year Ended June 30, 2024
99

Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Intergovernmental $ - $ 123,305 $ 893,963 $ 770,658
Use of money and property 250 250 4,205 3,955
Total revenues 250 123,555 898,168 774,613
EXPENDITURES:

Capital outlay - - 117,900 (117,900)
Total expenditures - - 117,900 (117,900)

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 250 123,555 780,268 656,713
OTHER FINANCING SOURCES:

Transfers in - - 64,579 64,579
Total other financing sources - - 64,579 64,579
NET CHANGE IN FUND BALANCE $ 250 $ 123,555 844,847 $ 721,292 FUND BALANCE:

Beginning of year 73,128
End of year $ 917,975
City of Cudahy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Development Impact Fees Special Revenue Fund
For the Year Ended June 30, 2024
100

Original Final Variance with
Budget Budget Actual Final Budget
EXPENDITURES:

Current:

Community development $ 23,097 $ 719,264 $ 23,096 $ 696,168 Total expenditures 23,097 719,264 23,096 696,168
NET CHANGE IN FUND BALANCE $ (23,097) $ (719,264) (23,096) $ 696,168 FUND BALANCE:

Beginning of year 825,439
End of year $ 802,343
City of Cudahy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Surface Transportation Program Special Revenue Fund
For the Year Ended June 30, 2024
101

Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Intergovernmental $ 562,384 $ 562,384 $ 429,277 $ (133,107) Total revenues 562,384 562,384 429,277 (133,107)
EXPENDITURES:

Current:

Community development 332,384 332,384 424,128 (91,744)
Capital outlay 230,000 230,000 9,373 220,627
Total expenditures 562,384 562,384 433,501 128,883
NET CHANGE IN FUND BALANCE $ - $ - (4,224) $ (4,224)
FUND BALANCE:

Beginning of year 632,248
End of year $ 628,024
City of Cudahy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual CDBG Special Revenue Fund
For the Year Ended June 30, 2024
102

Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Licenses and permits $ - $ 297,150 $ 122,179 $ (174,971) Use of money and property - - 1,434 1,434
Total revenues - 297,150 123,613 (173,537)
OTHER FINANCING USES:

Transfers out - - (123,613) (123,613)
Total other financing uses - - (123,613) (123,613)
NET CHANGE IN FUND BALANCE $ - $ 297,150 - $ (297,150)
FUND BALANCE:

Beginning of year -
End of year $ -
City of Cudahy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Community Benefit Special Revenue Fund
For the Year Ended June 30, 2024
103

Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Intergovernmental $ - $ - $ 62,258 62,258
Total revenues - - 62,258 62,258
EXPENDITURES:

Current:

Community development - 345,110 113,844 231,266
Total expenditures - 345,110 113,844 231,266

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES - (345,110) (51,586) 293,524
OTHER FINANCING SOURCES:

Transfers in - - 51,586 51,586
Total other financing sources - - 51,586 51,586
NET CHANGE IN FUND BALANCE $ - $ (345,110) - $ 345,110
FUND BALANCE:

Beginning of year -
End of year $ -
City of Cudahy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Permanent Local Housing Special Revenue Fund
For the Year Ended June 30, 2024
104

200 E. Sandpointe Avenue, Suite 600
Santa Ana, California 92707

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND

OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN

ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Independent Auditors’ Report
To the Honorable Mayor and the Members of the City Council of the City of Cudahy
Cudahy, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (“Government Auditing Standards”), the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Cudahy, California (the “City”), as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated December 31, 2024.

Report on Internal Control Over Financial Reporting
In planning and performing our audits 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 opinion 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. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.

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

106
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether 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.

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

Santa Ana, California
December 31, 2024

200 E. Sandpointe Avenue, Suite 600
Santa Ana, California 92707
December 31, 2024
To the Honorable Mayor and the Members of the City Council of the City of Cudahy
Cudahy, California
We have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Cudahy, California (the “City”) for the year ended June 30, 2024.

Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, and Government Auditing Standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated May 23, 2024. Professional standards also require that we communicate the following information related to our audit.

Significant Audit Matters
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the basic financial statements. As described in Note 1 to the financial statements, the City changed accounting policies related to accounting changes and error corrections by adopting Statement of Governmental Accounting Standards (GASB Statement) No. 100, Accounting Changes and Error Corrections – an Amendment of GASB Statement No. 62, in 2024. Accordingly, the cumulative effect of the accounting change as of the beginning of the year is reported in the statement of revenues, expenditures and changes in fund balances. No other new accounting policies were adopted and the application of existing policies was not changed during 2024. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.

Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the City’s financial statements were:
 Management’s estimate of the depreciation and amortization on capital assets is based on the industry standard and past experience on actual useful life of the asset groups. We evaluated the key factors and assumptions used to develop the depreciation on capital assets in determining that it is reasonable in relation to the financial statements taken as a whole.  Management’s estimate of the net pension liability is based on the proportionate share of actuarial valuation on total pension liability and based on the proportionate share of audited financial statements on fiduciary net position. We evaluated the key factors and assumptions used to develop the net pension liability in determining that it is reasonable in relation to the financial statements taken as a whole.
 Management’s estimate of the net other postemployment benefits (“OPEB”) liability is based on the actuarial valuation on total OPEB liability and financial statements on fiduciary net position. We evaluated the key factors and assumptions used to develop the OPEB liability in determining that it is reasonable in relation to the financial statements taken as a whole.

Attachment B Page 179 of 262
To the Honorable Mayor and Members of the City Council
of the City of Cudahy
Cudahy, California

Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the financial statements were:
 Note 1 – Summary of Significant Accounting Policies
 Note 2 – Stewardship, Compliance and Accountability
 Note 9 – Defined Benefit Pension Plan
 Note 10 – Other Postemployment Benefits (“OPEB”)
 Note 13 – Prior Period Adjustments
 Note 16 – Commitments and Contingencies
The financial statement disclosures are neutral, consistent, and clear.

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

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

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

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

Management Representations
We have requested certain representations from management that are included in the management representation letter dated December 31, 2024.

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.

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