Gardena City Council
December 13, 2022

2 Auditors’ Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whet her 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 opinion.

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 auditing standard s generally accepted in the United States of America 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 ove rride 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 w ith auditing standards generally accepted in the United States of America 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 res ponsive 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 c ontrol relevant to the audit in orde r to design audit procedures that are appropriate in the circumstances, but not for the purpo se 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 Stat es of America require that the Management’s Discussion and Analysis, the Budgetary Comparison Schedules – Gene ral Fund and Major Special Revenue Funds, the Schedule of Changes in Net Pension Liability and Related Ratios, the Schedule of City’s Proportionate Share of the Net Pension Liability and Related Ratios, the Schedules of Cont ributions – Pensions, the Schedules of Changes in Net Other Postemployment Benefits Liab ility and Related Ratios, and the Sc hedules of Contributions – Other Postemployment Benefits as listed in the table of contents be presented to s upplement the basic financial statements.

Such information, although not a part of the basic financ ial 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 manage ment about the methods of preparing the information and comparing the information for consistency with manage ment’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 Gardena
Gardena, California

3 Other Information
Management is responsible for the othe r information included in the annual re port. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditors’ report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

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

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 8 2022, on our consideration of the City’s internal control over financia l reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an 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 8, 2022

o
f Gardena
Management’s Discussion and Analysis
4 City of Gardena
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
(This page is intentionally left blank)
City of Gardena
Management’s Discussion and Analysis (Unaudited)
5 As management of the City of Gardena (City), California, we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2022. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in ou r letter of transmittal, which can be found in the introductory section of this report, as well as with the City’s financial stat ements, which follow this discussion.

Financial Highlights
 The liabilities and deferred inflows of resources of the City exceeded its assets and deferred outflows of resources at the close of the 2021-2022 fiscal year by $(7,221,963), which resulted in the City having a negative net positi on. The negative positions were due primarily to GASB No. 75 Accounting and Financial Reporting for Postemployment benefits other than pensions . The Other post- employment benefits (OPEB) were included with in the government-wide financial statements for both governmental and business-type financial re porting. At close of 2021-2022 fiscal year, the City’s Other post-employment benefit liabilities were $76,280,979 and $6,448,522 for governmental and business-type activities for a total of $82,729,501.  The City’s total net position increased by $33,126,028 in 2021-2022. Net position of governmental activities increased by $32,603,064 while net positi on of business type activities increased by $522,964. The increase for governmental activities was due primarily to 1) Additional Sales Tax Revenue compared to the prior year in the amount of around $3.7 Million as the economy continued to improve. 2) The American Rescue Pl an Act, which was guaranteed direct relief to cities, towns and villages in the United States was passed on March 11, 2021 and the City of Gardena was allocated $15,002,061; th e City recognized $3.5 million in additional funds for the 2021-2022 fiscal year. 3) The Cities two Card Cl ubs; the Hustler Casino and Lucky Lady Casino both did better than expected realizing in $6.5 million more in revenue in 21-22 compared to 20-21 with the Casino starting to rebound from the Covi d closures. 4) The City’s expenses decreased by about $11 million as a result of a decrease in pension liabilities due to the Pension Obligation Bond issued in fiscal year 2021 and the increase in the actual investment rate of return (21.3%) compared to the expected investment rate of return (7.15%) for CalPERS pension plans.  At the close of the 2021-2022 fiscal year, the City ’s governmental funds reported combined fund balances of $73,670,004, an increase of $29,182,671 in comparison to the prior year. General Fund increased by $13,043,546. The incr ease is due primarily to increa ses in Sales Tax Revenue for the Bradley Burns and Measure G sales tax revenue, which was higher than prior year by about $3.7 Million. The passage of the American Rescue Plan Act, which the City recognized $3.5 million, in revenue in 2021-2022, as well as the City’s Casinos doing remarkable better than the prior year and showed an increase of $6.4 million in Casino. The City’s expenditures, in contrast, only increased by approximately $6 million compared to the prio r year as the City held the line in terms of expenditures and was under budge t in the general fund by $1.2 million. Economic development grants special revenue fund increased by $1.7 million, as a result of the City receiving additional Park In Lieu revenue due to the increase in City projects. City Debt Service fund increased by $11.4 million as the City issued a Lease Revenue Bond in the amount of $13.2 million dollars and $2M premium with a 20-year term at 1.98% true interest cost over the life of the bond.  At the end of the 2021-2022 fiscal year, the unrestricted fund balance (the total of the nonspendable, committed, assigned, and unassigned components of fund balance) for the General Fund was $41,825,774, or approximately 71% of total General Fund expenditures.

City of Gardena
Management’s Discussion and Analysis (Unaudited) (Continued)

6  The City’s total outstanding long-term debt increased by $10,712,900 during the 2021-2022 fiscal year. The City’s governmental long-term debt increased by $11,552,091 or 11.4% compared to prior year due to the issuance of 2021 Lease Revenue Bond in the amount of $13.2 million dollars with a 20-year term at 1.98% true interest cost over the life of the bond and net with the City’s annual debt service principal payments made for the applicable debts during the fiscal year.

Overview of the Financial Statements

The discussion and analysis provided here are intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statem ents consist of three components: 1) government- wide financial statements; 2) fund financial statements ; and 3) the notes to financial statements. This report also includes supplementary information inte nded to furnish additional detail to support the basic financial statements themselves.

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

The statement of net po s i t i o n presents financial information about all of the City’s assets, deferred outflows of resources, liabilities, and deferred inflow s of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.

The statement of activities presents information showing how the Ci ty’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows . Thus, revenues and expenses are reported for some items that will only result in cash flows in future fi scal periods (e.g., uncollected taxes and earned but unused vacation leave).

Both of the government-wide financial statements dist inguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges ( business-type activities). The governmental activities of the City in clude general government, public safety, public works, community development, and recreation and hu man services. The business-type activities of the City include GTrans and the City's Sewer Maintenance Program.

The government-wide financial statements can be found on pages 20-23 of this report.

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

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

City of Gardena
Management’s Discussion and Analysis (Unaudited) (Continued) 7 Overview of the Financial Statements (Continued)
Because the focus of governmental funds is na rrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions.

Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The City maintains thirteen (13) individual governme ntal funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund, the Economic Development Grants Special Revenue Fund, and the City Debt Service Fund, which are considered to be major funds. Data from the other nine (9) governmental funds are combined into a single aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements in the combining and individual fund statements and schedules section of this report.

The City adopts an annual appropriated budget for it s general fund. A budgetary comparison statement has been provided for the general fund to demonstrate compliance with this budget.

The governmental fund financial statements can be found on pages 29-32 of this report.

Proprietary Funds. The City maintains two (2) different types of proprietary funds. Enterprise Funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to a ccount for its transit operation and for its sewer maintenance. Internal Service Funds are an accounting device used to accumulate and allocate costs internally among the City’s various functions. The Ci ty uses internal service funds to account for the management of its retained risks which includes liabi lity insurance, workers’ compensation, and health insurance. Because all of these services predominant ly benefit governmental rather than business-type functions, they have been included within governmental activities in the government-wide financial statements.

Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the transit operation and for the sewer maintenance, both of which are considered to be major funds of the City.

Conversely, internal service funds ar e combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds are provided in the form of combining statements in the combining and individual fund statements and schedules section of this report.

The proprietary fund financial statements can be found on pages 34-39 of this report.

Notes to the Financial Statements. The notes provide additional information that is necessary to acquire a full understanding of the data pr ovided in the government-wide an d fund financial statements. The notes to the financial statements can be found on pages 45-93 of this report.

City of Gardena
Management’s Discussion and Analysis (Unaudited) (Continued)

8 Overview of the Financial Statements (Continued)

Other Information. In addition to the basic financial statements and accompanying notes, this report also presents required supplementary information concerning the City’s funding its liability to provide pension and OPEB benefits to its employees and includes Budgetary Comparison schedules for the General Fund and the Economic Development Grants Sp ecial Revenue Fund. Required supplementary information can be found on pages 97-117 of this report

The combining statements, referred to earlier in connection with nonmajor governmental funds and internal service funds, are presen ted immediately following the requ ired supplementary information.

Combining and individual fund statements and schedules can be found on pages 122-153 of this report.

Government-wide Overall Financial Analysis

As noted earlier, net position, over time, may serve as a useful indicator of a government’s financial position. In the case of the City, liabilities and defe rred inflows of resources exceeded assets and deferred outflows of resources by $7,221,963 at the close of the 2021-2022 fiscal year.

`
2022 2021 2022 2021 2022 2021
Current and Non Current assets 108,775,385 $ 72,359,766 $ 11,074,930 $ 11,619,780 $ 119,850,315 $ 83,979,546 $ Aggregate net pension assets 38,527,341 - 10,712,038 - 49,239,379 - Capital assets 54,488,904 50,331,013 59,864,535 60,030,514 114,353,439 110,361,527 Total Assets: 201,791,630 122,690,779 81,651,503 71,650,294 283,443,133 194,341,073 Deferred outflow of resources related to pensions 42,960,563 94,396,978 1,293,367 24,812,818 44,253,930 119,209,796 Deferred outflow of resources related to OPEB 13,080,884 14,774,417 1,198,735 780,373 14,279,619 15,554,790 Total deferred outflows of resources: 56,041,447 109,171,395 2,492,102 25,593,191 58,533,549 134,764,586 Current liabilities 33, 278,888 21,249,985 18,174,777 17,013,122 51,453,665 38,263,107 Non-current liabilities
Long-term liabilities-Due in more than one year 119,315,985 105,836,442 22,353,013 22,871,698 141,668,998 128,708,140 Aggregate net pension liabilities - 85,202,345 - 23,777,439 - 108,979,784 Aggregate net other postemployment benefits liabilities 76, 280,979 73,792,590 6,448,522 6,828,246 82,729,501 80,620,836 Subtotal Non-current liabilities 195,596,964 264,831,377 28,801,535 53,477,383 224,398,499 318,308,760 Total Liabilities: 228,875,852 286,081,362 46,976,312 70,490,505 275,852,164 356,571,867 Deferred inflows of resources related to pensions 57,719,674 4,961,148 9,584,820 272,184 67,304,494 5,233,332 Deferred inflows of resources related to OPEB 4,944,373 7,129,550 1,097,614 518,900 6,041,987 7,648,450 Total deferred outflows of resources: 62,664,047 12,090,698 10,682,434 791,084 73,346,481 12,881,782 Net Investment in Capital
Assets 40,126,502 29,523,008 59,701,427 60,014,796 99,827,929 89,537,804 Restricted 21,665,716 19,325,200 - - 21,665,716 19,325,200 Unrestricted (deficit) (95,499,040) (115,158,094) (33,216,568) (34,052,900) (128,715,608) (149,210,994) Total Net Position: (33,706,822)$ (66,309,886) $ 26,484,859$ 25,961,896 $ (7,221,963)$ (40,347,990) $ Governmental Activities Business-type Activities TOTAL

CITY OF GARDENA NET POSITION
City of Gardena
Management’s Discussion and Analysis (Unaudited) (Continued) 9 Government-wide Overall Financial Analysis (Continued) By far, the largest portion of the City’s net position reflects its investment in capital assets (e.g., land, buildings, machinery, equipment, vehicles, and infr astructure), less any related outstanding debt that was used to acquire those assets. The City uses these capital assets to pr ovide a variety of services to its citizens. Accordingly, these assets are not available for future spending. Althou gh the City’s investment in capital assets is reported net of related debt, it should be noted that the resources used to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.

The City’s largest liabilities are their Long-term liabilities - Due in more than one year, which increased from $105,836,442 in 2020-2021 to $119,315,985 in fiscal year 2021-2022, or an increase of $13,479,543, as a result of the City issuing a 2021 Lease Revenue Bond to take advantage of the historical low interest rates in the amount of $13.2 million dollars with a 20-year term at 1.98% true interest cost over the life of the bond. The 2021 Lease Revenue Bond will be used to fund a portion of the new Gardena Community Aquatic & Senior Center, the cost of acquiring and re novating an existing building to be converted into a new Community Center and various park improvements. The other additional long-term liabilities are Other Post-Employment Benefits (OPEB) of $76,280,979, an increase of $2.5 million compared to the prior year. These two liabilities total $91,177,636 or 39.84%, of the total liability ba lance of $228, 875,852 at June 30, 2022.

An additional portion of the City’s net position (R estricted) represents resources that are subject to
external restrictions on how they may be used. The remaining balance of $ (95,499,040) is unrestricted and if positive, may be used to meet the government’s ongoing obligations to its citizens and creditors which include the net debt, required actuarial determined contributions for pension and OPEB liabilities.

At the end of the 2021-2022 fiscal year, the City is able to report positive balances in all reported categories of net position with the exception of unrestricted, both for the government as a whole, as well as for its separate governmental and business-type activities. The negative in unrestricted net position is a result of 1) Long t
erm pension bond debt as a result of the newly issued Pension Obligation Bond, this ha s been grouped
in the Long-Term Liabilities-Due in more than one year category 2) GASB 75, which is for other post-employment benefit liabi
lities. These two it ems made up approximately 67% of the overall $228,875,852 in Total Liabilit
ies in 2021-2022 fiscal year.

The City’s
overall net position in creased by $33,126,028 from the prior fiscal year. The reasons for this overall increase are discussed in the below sectio ns for governmental activities and business-type activities.

Governmental Activities. During 2021-2022 fiscal year, net position for governmental activities increased by $32,603,064 from the prior fiscal year for an ending balance of $(33,706,822). The increase in the overall net position was primarily related to: 1) Total ge neral revenues increased by $12.2 million or 20.2% compared to the prior year, which is due primarily to, sales tax revenue being higher than budget by about $1.8 Million, the passage of the American Rescue Plan Act, which the City recognized $3.5 million in 2021- 2022 fiscal year, along with the overall economy rebounding and not being hit as hard from the Covid-19 pandemic as originally expected; and 2) a decrease in expenses for the governmental actives by $11.8 million or 15% compared to the prior year; primarily as a result of the decreases in CalPERS pension liabilities (assets) as a result of the pension obligation bond issued in the prior year the increase in the actual investment rate of return (21.3%) compared to the expected investment rate of return (7.15%) for CalPERS pension plans which resulted in reporting net pension asset for the year ended June 30, 2022.

City of Gardena
Management’s Discussion and Analysis (Unaudited) (Continued)

10 Government-wide Overall Financial Analysis (Continued)

2022 2021 2022 2021 2022 2021
Revenues:

Program Revenues:

Charges for services 17,326,360 $ 12,202,470 $ 4,254,880 $ 2,791,856 $ 21,581,240 $ 14,994,326 $ Operating grants and contributions 4,081,043 14,663,306 22,018,364 20,725,315 26,099,407 35,388,621 Capital grants and contributions 2,511,878 3,017,989 3,915,704 14,856,026 6,427,582 17,874,015 General Revenues:

Property taxes 9,186,838 8,799,364 - - 9,186,838 8,799,364 Sales and other taxes 61,769,481 49,015,738 - - 61,769,481 49,015,738 Investment income and miscellaneous 1,761,008 2,673,019 68,374 125,924 1,829,382 2,798,943 Total Revenues: 96,636,608 90,371,886 30,257,322 38,499,121 126,893,930 128,871,007 Expenses:

General government 7,771,663 7,807,099 - - 7,771,663 7,807,099 Public safety 27,964,662 47,363,640 - - 27,964,662 47,363,640 Public works 11,239,762 8,707,372 - - 11,239,762 8,707,372 Recreation and human services 7,566,226 6,766,739 - - 7,566,226 6,766,739 Community development 5,946,949 2,986,934 - - 5,946,949 2,986,934 Interest and fiscal charges 3,888,463 2,532,013 - - 3,888,463 2,532,013 Enterprise operations - - 29,390,177 30,696,571 29,390,177 30,696,571 Total Expenses: 64,377,725 76,163,797 29,390,177 30,696,571 93,767,902 106,860,368 Increase (decrease) in Net Position 32,258,883 14,208,089 867,145 7,802,550 33,126,028 22,010,639 before other revenues and transfers
Transfers 344,181 (35,204) (344,181) 35,204 - - Change in Net Position 32,603,064 14,172,885 522,964 7,837,754 33,126,028 22,010,639 Net position- beginnin g of year (66,309,886) (80,482,771) 25,961,895 18,124,142 (40,347,991) (62,358,629) Net position - end of year (33,706,822)$ (66,309,886) $ 26,484,859$ 25,961,896 $ (7,221,963)$ (40,347,990) $ Governmental Activities Business -type Activities TOTAL

CITY OF GARDENA'S CHANGES IN NET POSITION

City of Gardena
Management’s Discussion and Analysis (Unaudited) (Continued) 11 Government-wide Overall Financial Analysis (Continued) Business-type Activities . In the 2021-2022 fiscal year, the City’s business-type activities increased the net position by $522,964 or 2 % compared to the prior year balance fo r the fiscal year ended June 30, 2022.

Business-type activities revenue de creased by $8,241,799 or 21% compared to the prior year for a total $30,257,322 in revenues at year-end. In comparison to the prior fiscal year, the charges for services increased by $1,463,024 or 52%, due to GTrans resuming fare collection on July 1, 2021. In FY21 due to Covid-19, GTrans stopped enforcing fare collection. Operating grants and contributions increased by $1,293,049 or 6% compared to the prior fiscal year, primarily due to GTrans restoring service in FY22 that had been reduced due to COVID-19 and higher fuel prices. Therefore, GTr ans used more operating subsidies to cover the shortfall. Capital grants and contributions decreased by $10,940,322 or 74% primarily due to the purchase of 18 CNG buses in 2021. No buses were purchased in FY22, however, there was advancement of several projects such as the scheduling and operations management software, CAD/AVL, the bus signal priority projects and the installa tion of the CNG station. Investment income and miscellaneous decreased $57,550 or 46% compared to the prior year due to the significant decreases in interest rates as the federal reserve tried to keep th e rates low to help stimulate the economy in response to the Covid-19 pandemic. Expenses for operations decreased by $1,306,394 or 4% compared to prior year, which was largely due to the lower pension and other post-employment benefits expenditures.

Financial Analysis of Governmental Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

Governmental Funds. The focus of the City’s governmental funds is to provide information about near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In particular, an unassigned fund balance may serve as a useful measure of a government’s net resources available for discretionary use as they represent the portion of fund balance which has not yet been limited to use for a particular purpose by either an external party, the City itself, or a group or individual that has been delegated authority to assign resources for use for particular purposes by the City’s Council.

On June 30, 2022, the City’s governmental funds reported combined fund balances of $73,670,004 with an increase of $29,182,671 or 66% in comparison with th e prior year. Approximately (1%) of this amount is $114,301 and constitutes an unassigned fund balance, which is available for spending at the government’s discretion. The remainder of the fund balance is either nonspendable, restricted, committed, or assigned to indicate that it is: 1) not in spendable form $682,404 ; 2) restricted for purposes $31,699,951 ; 3) committed for purposes $26,936,620 ; or 4) assigned for purposes $14,236,728.

The General Fund is the chief operating fund of th e City. At the end of the 2021-2022 fiscal year, the unassigned fund balance of the General Fund was $30 0,001, while the total fund balance increased from $28,782,228 to $41,825,774, an increase of $13,043,546 or a 45% increase from the prior year. As a measure of the General Fund’s liquidity, it may be useful to compare both the una ssigned fund balance and the total fund balance to total general fund expenditures. Unassigned fund balance represents approximately 0.5% of total general fund expenditures, while total fund balance represents approximately 70.5% of that same amount.

City of Gardena
Management’s Discussion and Analysis (Unaudited) (Continued)

12 Financial Analysis of Governmental Funds (Continued)

The fund balance of the City’s General Fund increased by $13,043,546 during the 2021-2022 fiscal year. The Top 5 Revenue generators, which make up 74% of th e General Fund Original Adopted Budget for Fiscal Year 2021-2022, was up $3.1 million compared to the bu dgeted amount or 6% ; 1) Sales Tax revenue for the Bradley Burns 1% was up $694,883k compared to budget and Sales Tax from Measure G .75% was up $1.1 million compared to the budget for a total increase of overall sales tax of $1.8 million as a majority of the sales tax generators did significantly better than expected ; 2) Card Club revenue was up $285K compared to the budget as both casinos started to co me back recover from the covid shut downs in the prior years; 3) Property Taxes were up $398K co mpared to budget with the continued thriving development in the City and higher housing prices in the region; 4) Utility Users Tax increased by $604K as more business were back open compared to the prior year covid closures ; and 5) Motor Vehicle In-Lieu increased by $30K from the budget primarily based on updated fee rates.

The Economic Development Grants Special Revenue Fu nd, a major fund, had an increase of $1.8 million in fund balance during the fiscal year primarily due to an additional park in lieu related fees for the various development projects within the city that were completed in the fiscal year.

The debt service fund, a major fund, had an increase of $11.4 million in fund balance during the fiscal year, due to the City issuing a 2021 Lease Revenue Bond to take advantage of the historical low interest rates in the amount of $13.2 million dollars with a 20-year term at 1.98% true interest cost over the life of the bond.

The 2021 Lease Revenue Bond will be used to fund a portion of the new Gardena Community Aquatic & Senior Center, the cost of acquir ing and renovating an existing building to be converted into a new Community Center and various park improvements.

Proprietary Funds . The City’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail.

Unrestricted net position of GTrans at the end of the fiscal year was $(25,133,911) and for the Sewer Fund was $2,270,436. The total increase in net position for GTrans was $895k and the Sewer Fund net position increased by $908k, respectively. GTrans increase in net position was due to the increases in charges for services as Gtrans resumed collect ing fares as of July 1, 2021. The Sewer Fund increase is based on the delay in starting capital projects and the expenditures saving s related to that, as Covid and staffing limitations delayed project starts.

General Fund Budgetary Highlights

The final amended budget for revenue was amended and increased from $64,974,874 to $72,222,039. Actual revenue compared to the final budget was up by $2.9 million or 4% compared to the final budget primarily increase in sales tax revenue compared to the budget of about $1.9 million, an increase of $603K for utility users tax compared to budget and overall, a rebound for the economy. A detailed budgetary comparison schedule for the year ended June 30, 2022, is presented as required supplementary information following the notes to the financial statements.

City of Gardena
Management’s Discussion and Analysis (Unaudited) (Continued) 13 General Fund Budgetary Highlights (Continued)
The final amended budget for combined General Fund expenditures was slightly different than the original budget, it was less by $ 360,105 or less than 1 percent. Actual expenditures were less than the final amended budget by around $1.2 Million or 1% percent, which was primarily the result of filling budgeted vacancies. A detailed budgetary comparison schedule for the year ended June 30, 2022, is presented as required supplementary information following the notes to the financial statements.

Capital Assets and Debt Administration
Capital Assets. The City’s investment in capital assets for its governmental and business-type activities as of June 30, 2022, amounts to $114,353,439 (net of accumulated depreciation and amortization). This investment in capital assets includes land, buildings, machinery, equipment, vehicles, park facilities, roads, leased assets and highways. The total increa se in capital assets compared to prior year was $3,306,104 or 2.98%, primarily due to more capital projects being completed in 2021-2022 fiscal year.

Major capital asset events during the 2021-2022 fiscal year included the following:
 Acquisition of Chase Property on 2501 West Rosecrans Avenue  Completion of Western
Avenue Street Improvement project
 Completion of 139th Street and Van Ness Avenue Street Improvements  Acquisition of 2 Gtrans
Trolleys
Additional information on the City’s capital assets can be found in Note 7 on pages 65-66 of this report. 2022 2021 2022 2021 2022 2021
Non-depreciable assets:

Land 11,544,572$ 9,708,520 $ 12,956,405 $ 12,956,405 $ 24,500,977 $ 22,664,925$ Monuments 63,893 63,893 - - 63,893 63,893 Construction in progress 2,247,985 3,580,865 4,870,249 1,865,040 7,118,234 5,445,905 Total Non-depreciable assets 13,856,450 13,353,278 17,826,654 14,821,445 31,683,104 28,174,723 Capital assets/lease assets, being depreciated:

Building/structures and improvements 7,085,119 5,596,156 26,084,166 27,107,074 33,169,285 32,703,230 Buses - - 12,495,655 14,494,670 12,495,655 14,494,670 Machinery and equipment 2,963,820 3,646,455 2,655,548 2,951,194 5,619,368 6,597,649 Furniture and fixtures - - 94,586 66,572 94,586 66,572 Infrastructure - - 555,870 589,559 555,870 589,559 Leased Assets 323,168 381,696 152,056 304,112 475,224 685,808 Street lights network 4,458,045 301,557 - - 4,458,045 301,557 Traffic lights network 263,956 695,316 - - 263,956 695,316 Roadway network 25,538,346 26,738,251 - - 25,538,346 26,738,251 Total depreciable assets (net) 40,632,454 37,359,431 42,037,881 45,513,181 82,670,335 82,872,612 Total capital assets 54,488,904 50,712,709 59,864,535 60,334,626 114,353,439 111,047,335 G
overnmental Activities Business -type Activities TOTAL

CITY OF GARDENA'S CAPITAL ASSETS
(Net of depreciation)
City of Gardena
Management’s Discussion and Analysis (Unaudited) (Continued)

14 Capital Assets and Debt Administration (Continued)

Long-term Debt. At the end of the 2021-2022 fiscal year, the City had total bonded debt outstanding of $112,662,082. The City’s long-term debt increased by $10,712,900 or 9% compared to prior year due to the issuance of 2021 Lease Revenue Bonds net with the City’s annual debt service principal payments made for the applicable debts below during the fiscal year.

The City maintains an existing lease rating of “A+” rating from Standard & Poor’s and an “A1” rating with Moody’s for its general fund lease supported debt as of June 30, 2022. The City’s issuer ratings are “AA-“ with S & P and “Aa3” with Moody’s.

Additional information about the City’s long-term debt can be found in Note 8 on pages 67-72 of this report.

Economic Factors and Next Year’s Budget and Rates

As a result of the City’s fiscally conservative approach taken these past couple of years, the City finds itself in a financially stable position, which allowed the City in its adopted budget for fiscal year 2022-2023 and 2023-2024, to budget for and add a total of 83 additional positions ( 42-Full Time and 40-Part Time), as well as investments in seniors, youth and community service programs and the largest budgeted Capital Improvement Program in the Cities history with over $56 million budgeted for the next two fiscal years.

The City adopted a two year budget on June 28, 2022 for Fiscal Years 2022-2023 and Fiscal Years 2023-2024.

The General Fund Revenue Budget for 2022-2023 was $76,6 53,769 with expenditures of $76,616,761 for a surplus of $37,008. In 2023-2024 the General Fund adopted revenue budget was $77,593,605 with expenditures of $77,554,469 for a surplus of $39,136 in 2023-2024. 2022 2021 2022 2021 2022 2021
Refunding Revenue Bonds 10,130,000$ 10,310,000 $ - $ - $ 10,130,000$ 10,310,000 $ Certificates of Participation 6,565,000 7,150,000 - - 6,565,000 7,150,000 Direct Purchase Lease 565,000 845,000 - - 565,000 845,000 - Bond discount (192,173) (206,057) - - (192,173) (206,057) Pension Obligation Bonds 76,692,725 79,029,723 21,592,275 22,250,277 98,285,000 101,280,000 Lease Revenue Bonds 12,880,000 - - - 12,880,000 - - Bond premium 2,008,657 - - - 2,008,657 - SCE On-Bill Financing Loan 43,361 53,749 - - 43,361 53,749 Loan Payable 3,632,103 3,545,880 - - 3,632,103 3,545,880 Lease Payable 337,409 381,696 158,923 340,112 496,332 721,808 112,662,082 101,109,991 21,751,198 22,590,389 134,413,280 123,700,380 Governmental Activities TOTAL

CITY OF GARDENA'S OUTSTANDING DEBT
Business-Type Activities
City of Gardena
Management’s Discussion and Analysis (Unaudited) (Continued) 15 Economic Factors and Next Year’s Budget and Rates (Continued) In 2022-2023 the Top 5 Adopted Budgeted General Fund revenue sources, which make up 72% of the City’s General Fund, include: 1) Sales and Use Tax - $25.2 m illion (32%), 2) Property Taxes - $9 million (12%), 3) Card Club Gross Revenue Fees - $8.8 million (11%) 4) Vehicle License Fees - $7.5 million (8%), and 5) Utility Users Tax - $4.9 million (6%).

In 2022-2023 the Top 5 Adopted Budgeted General Fund expenditures were $76,616,761, with the Police Department making up $32.9 million or 43%, Non-Departmental (including the Fi re Department and our South Bay Regional Public Communications Authority) $13.5 Million or 18%, Transfers Out at $8.7 Million or 11%, Public Works at $6.5 Million or 9%, Recreation and Human Services at $4.4 Million or 6%, Debt Service Payments at $3 Million or 4%, Elected and City Managers Offices at $2.6 Million or 3%, Community Development Department at $ 2.5 Million or 3% and the Administrative Services Department at $2.5 Million or 3%.

As we look to futures years the economy and threats on a recession loom, however the City is well prepared to face these events if they do occur as we are very fortunate to have a stable diverse economic base, which somewhat shields our economy from downturns in any specific category.

Requests for Information
This financial report is designed to provide our citi zens, taxpayers, customers, investors, and creditors with a general overview of the City’s and to show the city’s accountability for the money it receives. If you have questions about this report or need additional financial inform ation, contact the Administrative Services Department, 1700 W. 162
nd Street, Gardena, CA 90247.
16 City of Gardena
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
(This page is intentionally left blank)

BASIC FINANCIAL STATEMENTS
17 18
City of Gardena
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
(This page is intentionally left blank)

GOVERNMENT-WIDE

FINANCIAL STATEMENTS
19 Governmental Business-Type
Activities Activities Total
ASSETS
Current assets:

Cash and investments 69,098,624 $ 18,914,863 $ 88,013,487 $ Receivables, net 9,912,401 540,308 10,452,709 Due from other governments 1,249,532 3,153,122 4,402,654 Internal balances 12,426,495 (12,426,495) - Prepaid items 630,526 66,745 697,271 Inventories 54,334 826,387 880,721 Total current assets 93,371,912 11,074,930 104,446,842 Noncurrent assets:

Restricted cash and investments:

Cash with fiscal agent 13,436,529 - 13,436,529 Loans receivable 1,966,944 - 1,966,944 Aggregate net pension assets 38,527,341 10,712,038 49,239,379 Capital assets:

Nondepreciable 13,856,450 17,826,654 31,683,104 Depreciable, net 40,632,454 42,037,881 82,670,335 Total capital assets 54,488,904 59,864,535 114,353,439 Total noncurrent assets 108,419,718 70,576,573 178,996,291 Total assets 201,791,630 81,651,503 283,443,133

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resources related to pensions 42,960,563 1,293,367 44,253,930 Deferred outflows of resources related to other postemployment benefits 13,080,884 1,198,735 14,279,619 Total deferred outflows of resources 56,041,447 2,492,102 58,533,549 Primary Government
City of Gardena
Statement of Net Position
June 30, 2022
See accompanying Notes to the Basic Financial Statements. 20 Governmental Business-Type
Activities Activities Total

LIABILITIES
Current liabilities:

Accounts payable 2,724,222 1,302,373 4,026,595 Accrued liabilities 841,950 168,859 1,010,809 Salaries and benefits payable 1,726,082 724,825 2,450,907 Retention payable 37,611 4,185 41,796
Deposits payable 3,647,195 - 3,647,195
Unearned revenue 4,483,427 14,618,926 19,102,353 Accrued interest payable 909,848 - 909,848 Compensated absences - due within one year 1,751,766 391,485 2,143,251 Claims payable - due within one year 12,477,264 - 12,477,264 Long-term debt - due within one year 4,679,523 964,124 5,643,647 Total current liabilities 33,278,888 18,174,777 51,453,665 Noncurrent liabilities:

Compensated absences - due in more than one year 7,007,065 1,565,939 8,573,004 Claims payable - due in more than one year 4,326,361 - 4,326,361 Long-term debt - due in more than one year 107,982,559 20,787,074 128,769,633 Aggregate net other postemployment benefits liabilities 76,280,979 6,448,522 82,729,501 Total noncurrent liabilities 195,596,964 28,801,535 224,398,499 Total liabilities 228,875,852 46,976,312 275,852,164

DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources related to pensions 57,719,674 9,584,820 67,304,494 Deferred inflows of resources related to other postemployment benefits 4,944,373 1,097,614 6,041,987 Total deferred inflows of resources 62,664,047 10,682,434 73,346,481

NET POSITION
Net investment in capital assets 40,126,502 59,701,427 99,827,929 Restricted for:

Law enforcement 1,459,666 - 1,459,666
Local street improvements 10,385,580 - 10,385,580 Economic development 6,914,470 - 6,914,470
Other purposes 1,014,200 - 1,014,200
Capital projects 273,887 - 273,887
Debt service 1,617,913 - 1,617,913
Total restricted 21,665,716 - 21,665,716
Unrestricted (deficit) (95,499,040) (33,216,568) (128,715,608) Total net position (deficit) (33,706,822)$ 26,484,859 $ (7,221,963) $ Primary Government
City of Gardena
Statement of Net Position (Continued)
June 30, 2022
See accompanying Notes to the Basic Financial Statements. 21 Operating Capital Total
Charges for Grants and Grants and Program
Functions/Programs Expenses Services Contributions Contributions Revenues Governmental activities:

General government 7,771,663 $ 8,769,328 $ 731,866 $ - $ 9,501,194$ Public safety 27,964,662 1,236,057 652,444 - 1,888,501 Public works 11,239,762 534,045 1,212,408 2,496,478 4,242,931 Recreation and human services 7,566,226 3,647,094 851,713 - 4,498,807 Community development 5,946,949 3,139,836 632,612 15,400 3,787,848 Interest and fiscal charges 3,888,463 - - - - Total governmental activities 64,377,725 17,326,360 4,081,043 2,511,878 23,919,281 Business-type Activities:

GTrans 27,966,497 1,643,970 22,018,364 3,915,704 27,578,038 Sewer 1,423,680 2,610,910 - - 2,610,910 Total business-type activities 29,390,177 4,254,880 22,018,364 3,915,704 30,188,948 Total primary government 93,767,902$ 21,581,240 $ 26,099,407 $ 6,427,582 $ 54,108,229 $ City of Gardena
Statement of Activities
For the Year Ended June 30, 2022
Program Revenues
See accompanying Notes to the Basic Financial Statements. 22 Governmental Business-Type
Functions/Programs Activities Activities Total
Governmental activities:

General government 1,729,531 $ - $ 1,729,531$
Public safety (26,076,161) - (26,076,161)
Public works (6,996,831) - (6,996,831)
Recreation and human services (3,067,419) - (3,067,419) Community development (2,159,101) - (2,159,101) Interest and fiscal charges (3,888,463) - (3,888,463) Total governmental activities (40,458,444) - (40,458,444) Business-type Activities:

GTrans - (388,459) (388,459)
Sewer - 1,187,230 1,187,230
Total business-type activities - 798,771 798,771
Total primary government (40,458,444) 798,771 (39,659,673) General revenues and transfers:

General revenues:

Taxes:

Property taxes 9,186,838 - 9,186,838
Sales taxes 27,908,699 - 27,908,699
Business license 2,647,094 - 2,647,094
Utility users taxes 5,481,395 - 5,481,395
Franchise taxes 3,075,659 - 3,075,659
Card club 10,544,947 - 10,544,947
Other taxes 4,626,009 - 4,626,009
Total taxes 63,470,641 - 63,470,641
Vehicle license - unrestricted 7,485,678 - 7,485,678 Investment income (loss) (1,520,476) 68,374 (1,452,102) Miscellaneous 3,281,484 - 3,281,484
Total general revenues 72,717,327 68,374 72,785,701 Transfers 344,181 (344,181) -
Changes in net position 32,603,064 522,964 33,126,028 Net position (deficit) - beginning of year (66,309,886) 25,961,895 (40,347,991) Net position (deficit) - end of year (33,706,822)$ 26,484,859 $ (7,221,963) $ Net (Expense) Revenue and
Changes in Net Position
City of Gardena
Statement of Activities (Continued)
For the Year Ended June 30, 2022
See accompanying Notes to the Basic Financial Statements. 23 24
City of Gardena
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
(This page is intentionally left blank)

FUND FINANCIAL STATEMENTS
Governmental Fund Financial Statements
Proprietary Fund Financial Statements
Fiduciary Fund Financial Statements
25 26
City of Gardena
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
(This page is intentionally left blank)

GOVERNMENTAL FUND

FINANCIAL STATEMENTS
General Fund - To account for and report all financial resources not accounted for and reported in another fund.

City Debt Service Fund - To account for and report financial resources that are restricted, committed or assigned to expenditure for principal and interest.

Nonmajor Governmental Funds - To account for the aggregate of all the nonmajor governmental funds.

Economic Development Grants Special Revenue Fund - To account for the ten funds used for housing and environmental issues.

Four of the funds receive pass-through funding from the California U.S. Department of Housing and Urban Development ("HUD") or program income to assist cities and counties to create and retain affordable housing. Eligible activities include housing rehabilitation loans to benefit lower income owners and loans for development of the low income senior rental property. One fund is used to provide off-street parking in described areas and to provide park or recreational facilities using fees received from the developers as required by the City's ordinance. Two funds receive funding from the U.S. Environmental Protection Agency ("EPA"). These grants are used to empower communities and other stakeholders in economic redevelopment to work together in a timely manner to prevent, assess, safely clean up, and sustainably use brownfields (previously unusable land) reuse contaminated properties. Two funds receive funding from California Department of Housing and Community Development (“HCD”) to assist local government for the preparation, adoption, and implementation of planning and process improvements that streamline housing approvals and accelerate housing production. One fund to account for development impact fee to provide infrastructure and facility improvements as required by City’s ordinance.
27 28
City of Gardena
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
(This page is intentionally left blank)
Economic
Development Nonmajor Total
General Grants Special City Governmental Governmental
Fund Revenue Debt Service Funds Funds
ASSETS
Cash and investments 36,720,138 $ 4,837,230 $ - $ 17,356,019$ 58,913,387$ Cash and investments with fiscal agents - - 13,436,529 - 13,436,529 Receivables:

Accounts 2,117,745 316,908 - 1,112,027 3,546,680 Taxes 6,069,789 - - 25,132 6,094,921 Interest 36,136 - - - 36,136
Employees 28,929 - - - 28,929
Loans - 1,966,944 - - 1,966,944
Inventories 54,334 - - - 54,334
Prepaid items and deposits 298,091 - 288,931 41,048 628,070 Due from other governments - - - 1,249,532 1,249,532 Due from other funds 3,910,326 - - - 3,910,326 Total assets 49,235,488$ 7,121,082$ 13,725,460$ 19,783,758$ 89,865,788$

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable 1,285,779$ 65,042$ -$ 1,120,613$ 2,471,434$ Accrued liabilities 197,467 - - 70 197,537 Salaries and benefits payable 1,645,384 - - 80,698 1,726,082 Due to other funds - 251,866 372,250 1,494,423 2,118,539 Unearned revenue 532,620 - - 3,950,807 4,483,427 Retention payable - - - 37,611 37,611
Deposits payable 3,647,195 - - - 3,647,195
Total liabilities 7,308,445 316,908 372,250 6,684,222 14,681,825 Deferred inflows of resources:

Unavailable revenue 101,269 301,508 - 1,111,182 1,513,959 Total deferred inflows of resources 101,269 301,508 - 1,111,182 1,513,959 Fund balances:

Nonspendable 352,425 - 288,931 41,048 682,404 Restricted - 6,502,666 13,065,376 12,131,909 31,699,951 Committed 26,936,620 - - - 26,936,620
Assigned 14,236,728 - - - 14,236,728
Unassigned (deficit) 300,001 - (1,097) (184,603) 114,301 Total fund balances 41,825,774 6,502,666 13,353,210 11,988,354 73,670,004 Total liabilities, deferred inflows of
resources, and fund balances 49,235,488$ 7,121,082$ 13,725,460$ 19,783,758$ 89,865,788$ Major Funds
City of Gardena
Balance Sheet
Governmental Funds
June 30, 2022
See accompanying Notes to the Basic Financial Statements. 29 Total Fund Balances - Total Governmental Funds 73,670,004$ Amounts reported for governmental activities in the statement of net position are different because:

Capital assets, not being depreciated 13,856,450 $
Capital assets, depreciable 115,318,675
Less accumulated depreciation (75,009,389)
Lease assets 531,835
Less accumulated amortization (208,667) 54,488,904 (909,848)
(4,679,523)
(107,982,559)
(1,751,766)
(7,007,065)
42,960,563
38,527,341
(57,719,674)
13,080,884
(76,280,979)
(4,944,373)
3,327,310
1,513,959
Net position of governmental activities (33,706,822)$
Aggregate net pension liabilities
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
Revenues earned but not available to pay for current expenditures for governmental funds are unavailable.

City of Gardena
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2022
Capital assets used in governmental activities are not financial resources and are not reported in 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 Internal service funds are used by management to charge the costs o f general liability, workers' compensation and health benefit claims to individual funds. The assets and liabilities of the internal service funds are included in the governmental activities in the Government-Wide Statement of Net Position
(net of $10,634,708 allocated to business-type activities).

Amount reported in government-wide statement of position:

Long-term debt - due within one year
Long-term debt - due in more than one year
Aggregate net OPEB liabilities
OPEB related deferred inflows of resources
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
See accompanying Notes to the Basic Financial Statements. 30 Economic
Development Nonmajor Total
General Grants Special City Governmental Governmental
Fund Revenue Debt Service Funds Funds
REVENUES:

Taxes 66,503,135 $ - $
-$
4,160,327$ 70,663,462$
Licenses and permits 2,900,062 -
-
-
2,900,062
Intergovernmental 522,015 15,400 - 13,152,438
13,689,853
Charges for services 5,365,786 39,000 - 43,258
5,448,044
Fines, forfeitures, and penalties 923,049 2,710,489 - 27,148
3,660,686
Use of money and property (1,607,573) 16,082 31,094 42,617 (1,517,780)
Miscellaneous 555,490 9
4,653,993 35,573
5,245,065
Total revenues 75,161,964 2,780,980 4,685,087 17,461,361 100,089,392 EXPENDITURES:

Current:

General government 5,187,813 -

-
108,848 5,296,661
Public safety 41,172,977 -
-
372,496 41,545,473
Public works 6,091,797 -
-
1,777,014 7,868,811
Recreation and human services 3,310,663 -
-
4,007,399 7,318,062
Community development 2,410,655 236,433 - 414,544
3,061,632
Capital outlay 954,834 62,734 - 7,911,539
8,929,107
Debt service:

Principal retirement 152,428 -
3,656,998
41,559 3,850,985
Interest and fiscal charges 26,815 -
3,867,537 5,290 3,899,642
Total expenditures 59,307,982 299,167 7,524,535 14,638,689 81,770,373

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 15,853,982 2,481,813 (2,839,448) 2,822,672 18,319,019 OTHER FINANCING SOURCES (USES):

Transfers in 5,442,274 -

2,585,364
8,372,480 16,400,118
Transfers out (8,513,520) (697,700) (3,617,687) (8,227,030) (21,055,937)
Proceeds from sale of assets 121,498 -
-
6,125
127,623
Proceeds from debt issuance 139,312 -
15,252,536
-
15,391,848
Total
other financing sources (uses) (2,810,436) (697,700) 14,220,213 151,575 10,863,652 NET CHANGES IN FUND BALANCES 13,043,546 1,784,113 11,380,765 2,974,247 29,182,671 FUND BALANCES:

Beginning of year 28,782,228 4,718,553 1,972,445 9,014,107 44,487,333 End of year 41,825,774$ 6,502,666$ 13,353,210$ 11,988,354$ 73,670,004$ Major Funds
City of Gardena
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the Year Ended June 30, 2022
See accompanying Notes to the Basic Financial Statements. 31 Net change in fund balances - total governmental funds: 29,182,671$ Amounts reported for governmental activities in the Statement of Activities are different because:
7,431,322
The net effect of disposal of capital assets. (23,285)
(3,631,842)
111,286
(896,819)
(1,996,745)
19,534,745
Principal repayments of long-term debt 3,850,985
Interest accrual on loans payables (86,223)
Proceeds from issuance of long-term debt (15,391,848)
Amortization of bond discount (13,884) (11,640,970) (1,910,177)
(3,557,122)
Change in net position of governmental activities 32,603,064$ Capital outlay ($1,497,785 of capital outlay expenditures were for current public works expenditures for repairs and maintenance and therefore, were not capitalized).

City of Gardena
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, 2022
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:

Internal service funds were used by management to charge the costs of certain activities, such as insurance, to individual funds. The net revenue of the internal service funds was reported with governmental activities (net of $1,561,061 allocated to business-type activities).

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

Long-term compensated absences 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 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 credit net of contribution made after measurement date reported in deferred outflows of resources in the Government-Wide Statement of Net Position but reported as pension expenditures in the governmental funds in the amount of $4,016,414.

OPEB expense net of contribution made after measurement date reported in deferred outflows of resources in the Government-Wide Statement of Net Position but reported as OPEB expenditures in the governmental fund in the amount of $2,283,676.

See accompanying Notes to the Basic Financial Statements. 32 Internal Service Funds - To account for financing of goods and services provided by one department (general liability, workers’ compensation, and health benefits) to other departments of the City on a cost-reimbursement basis.

PROPRIETARY FUND

FINANCIAL STATEMENTS
GTrans Enterprise Fund - To account for user charges, fees, federal, state and county grants and all operating costs associated with the operation of the City’s bus line.

Sewer Enterprise Fund (Nonmajor) - To account for user charges, fees and all operating costs associated with the operation, maintenance, upgrade and periodic reconstructions of the City’s sanitary sewer system. 33 Governmental
Activities
GTrans Nonmajor Sewer Internal
Enterprise Fund Enterprise Fund Total Service Funds
ASSETS
Current assets:

Cash and investments 15,340,334 $ 3,574,529 $ 18,914,863 $ 10,185,237 $ Accounts receivable, net 324,690 215,618 540,308 205,735 Due from other governments 3,153,122 - 3,153,122 - Inventories 826,387 - 826,387 - Prepaid items and deposits 52,018 14,727 66,745 2,456 Total current assets 19,696,551 3,804,874 23,501,425 10,393,428 Noncurrent assets:

Aggregate net pension assets 10,155,145 556,893 10,712,038 - Capital assets, net 59,000,601 863,934 59,864,535 - Total noncurrent assets 69,155,746 1,420,827 70,576,573 - Total assets 88,852,297 5,225,701 94,077,998 10,393,428

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resources related to pensions 1,226,128 67,239 1,293,367 - Deferred outflows of resources related to other
postemployment benefits 1,114,456 84,279 1,198,735 - Total deferred outflows of resources 2,340,584 151,518 2,492,102 - (Continued)
City of Gardena
Statement of Net Position
Proprietary Funds
June 30, 2022
Business-Type Activities
See accompanying Notes to the Basic Financial Statements. 34 Governmental
Activities
GTrans Nonmajor Sewer Internal
Enterprise Fund Enterprise Fund Total Service Funds

LIABILITIES
Current liabilities:

Accounts payable 1,290,315 12,058 1,302,373 252,788 Accrued liabilities 168,859 - 168,859 644,413 Salaries and benefits payable 688,835 35,990 724,825 - Due to other funds 1,791,787 - 1,791,787 -
Retention payable 4,185 - 4,185 -
Unearned revenue 14,618,926 - 14,618,926 -
Compensated absences, due within one year 356,555 34,930 391,485 - Lease payable, due within one year 158,923 - 158,923 Long-term debt, due within one year 769,284 35,917 805,201 - Claims payable, due within one year - - - 12,477,264 Total current liabilities 19,847,669 118,895 19,966,564 13,374,465 Noncurrent liabilities:

Compensated absences, due in more than one year 1,426,219 139,720 1,565,939 - Claims payable, due in more than one year - - - 4,326,361 Long-term debt, due in more than one year 19,864,835 922,239 20,787,074 - Aggregate net other postemployment benefits liabilities 5,912,424 536,098 6,448,522 - Total noncurrent liabilities 27,203,478 1,598,057 28,801,535 4,326,361 Total liabilities 47,051,147 1,716,952 48,768,099 17,700,826

DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources related to pensions 9,086,528 498,292 9,584,820 - Deferred inflows of resources related to other
postemployment benefits 1,070,009 27,605 1,097,614 - Total deferred inflows of resources 10,156,537 525,897 10,682,434 -

NET POSITION
Net investment in capital assets 58,837,493 863,934 59,701,427 - Unrestricted (deficit) (24,852,296) 2,270,436 (22,581,860) (7,307,398) Total net position 33,985,197$ 3,134,370 $ 37,119,567 $ (7,307,398) $ Net position reconciliation:

Net position of proprietary funds 33,985,197$ 3,134,370 $ 37,119,567 $ (7,307,398) $ Adjustment to reflect the consolidation of .
internal service fund activities related to the
GTrans and Sewer (10,650,650) 15,942 (10,634,708) 10,634,708 Net position of business-type activities 23,334,547$ 3,150,312$ 26,484,859$ Net position related to governmental activities 3,327,310$ (Concluded)
June 30, 2022
Business-Type Activities
City of Gardena
Statement of Net Position (Continued)
Proprietary Funds
See accompanying Notes to the Basic Financial Statements. 35 36
City of Gardena
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
(This page is intentionally left blank)
Governmental
Activities
GTrans Nonmajor Sewe r Internal
Enterprise Fund Enterprise Fund Total Service Funds
OPERATING REVENUES:

Charges for services 1,380,961 $ 2,604,435 $ 3,985,396 $ 10,913,022 $ Operating governmental grants:

Local transportation fund 5,833,372 - 5,833,372 - Other local assistance 11,713,377 - 11,713,377 - Federal transit assistance 3,596,324 - 3,596,324 - State transit assistance fund 875,291 - 875,291 - Total operating governmental grants: 22,018,364 - Other 249,975 - 249,975 903,759
Total operating revenues 23,649,300 2,604,435 26,253,735 11,816,781 OPERATING EXPENSES:

Salaries and benefits 13,463,944 866,671 14,330,615 - Insurance claims - - - 14,111,721
General and administrative 5,308,350 250,534 5,558,884 6,029,634 Depreciation and amortization 4,755,979 144,765 4,900,744 - Other operating expenses 2,305,675 79,073 2,384,748 173,176 Total operating expenses 25,833,948 1,341,043 27,174,991 20,314,531 OPERATING INCOME (LOSS) (2,184,648) 1,263,392 (921,256) (8,497,750) NONOPERATING REVENUES (EXPENSES):

Interest income 57,239 11,135 68,374 26,512
Interest expense (624,991) (29,134) (654,125) - Gain on sale of capital assets 13,034 6,475 19,509 - Total nonoperating revenues (expenses) (554,718) (11,524) (566,242) 26,512

INCOME (LOSS) BEFORE
CONTRIBUTIONS AND TRANSFERS (2,739,366) 1,251,868 (1,487,498) (8,471,238) CONTRIBUTIONS AND TRANSFERS:

Capital contributions 3,915,704 - 3,915,704 - Transfers i
n - 45,275 45,275 6,604,982
Transfers out - (389,456) (389,456) (1,604,982) Total contributions and transfers 3,915,704 (344,181) 3,571,523 5,000,000 CHANGES IN NET POSITION 1,176,338 907,687 2,084,025 (3,471,238) NET POSITION (DEFICIT):

Beginning of year 32,808,859 2,226,683 35,035,542 (3,836,160) End of year 33,985,197$ 3,134,370$ 37,119,567$ (7,307,398)$ Change in net position reconciliation:

Change in net position of proprietary funds 1,176,338$ 907,687$ 2,084,025$ (3,471,238)$ Adjustment to reflect the consolidation of
internal service fund activities related to the
GTrans and Sewer (1,507,558) (53,503) (1,561,061) 1,561,061 Change in net position of business-type activities (331,220)$ 854,184 $ 522,964 $ Change in net position related to governmental activities (1,910,177) $ City of Gardena
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
For the Year Ended June 30, 2022
Business-Type Activities
See accompanying Notes to the Basic Financial Statements. 37 Governmental
Activities
GTrans Nonmajor Sewer Internal
Enterprise Fund Enterprise Fund Total Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from customers and users 1,299,626 $ 2,626,357 $ 3,925,983 $ 10,713,924 $ Receipts from claims and recoveries - - - 903,759 Payments for insurance claims - - - (7,912,570) Payments to suppliers (7,123,741) (321,084) (7,444,825) (5,418,244) Payments to employees (14,934,018) (783,650) (15,717,668) - Transit assistance funds received 21,678,300 - 21,678,300 - Net cash provided by (used in) operating activities 920,167 1,521,623 2,441,790 (1,713,131)

CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:

Transfers from other funds
- 45,275 45,275 6,604,982 Transfers to other funds - (389,456) (389,456) (1,604,982) Payments made to other funds 1,022,782 - 1,022,782 - Principal payments on long term debt (773,840) (29,351) (803,191) - Interest paid (624,991) (29,134) (654,125) - Net cash provided by (used in)
noncapital financing activities (376,049) (402,666) (778,715) 5,000,000

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Acquisition of capital assets (3,931,419) (510,767) (4,442,186) - Proceeds from sale of capital assets 13,034 6,475 19,509 - Receipt from capital grants 3,915,704 - 3,915,704 - Net cash used in capital
and related financing activities (2,681) (504,292) (506,973) - CASH FLOWS FROM INVESTING ACTIVITIES:

Interest received 57,239 11,135 68,374 26,512 Net cash provided by investing activities 57,239 11,135 68,374 26,512 Net change in cash and cash equivalents 598,676 625,800 1,224,476 3,313,381 CASH AND CASH EQUIVALENTS:

Beginning of year 14,741,658 2,948,729 17,690,387 6,871,856 End of year 15,340,334 $ 3,574,529 $ 18,914,863 $ 10,185,237 $ (Continued)
City of Gardena
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2022
Business-Type Activities
See accompanying Notes to the Basic Financial Statements. 38 Governmental
Activities
GTrans Nonmajor Sewer Internal
Enterprise Fund Enterprise Fund Total Service Funds

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

Operating income (loss) (2,184,648) $ 1,263,392 $ (921,256) $ (8,497,750) $ Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities:

Depreciation and amortization expenses 4,755,979 144,765 4,900,744 - (Increase) decrease in:

Accounts receivable (81,335) 21,922 (59,413) (199,098) Due from other government (585,727) - (585,727) - Unearned revenue (4,312) - (4,312) -
Inventory (187,914) - (187,914) -
Prepaid items and deposits 19,281 (745) 18,536 376,540 Deferred outflows of resources - pensions 22,485,440 1,034,011 23,519,451 - Deferred outflows of resources - OPEB (421,968) 3,606 (418,362) - Increase (decrease) in:

Accounts payable 583,768 9,268 593,036 17,856 Accrued liabilities 75,149 - 75,149 405,865
Accrued payroll 122,862 8,699 131,561 -
Compensated absences 277,739 80,409 358,148 - Net pension liability (32,877,287) (1,612,190) (34,489,477) - Net other postemployment benefits liability (470,030) 90,306 (379,724) - Deferred inflows of resources - OPEB 586,745 (8,031) 578,714 - Deferred inflows of resources - pensions 8,826,425 486,211 9,312,636 - Deposits payable - - - (15,695)
Claims payable -
- - 6,199,151
Total adjustment 3,104,815 258,231 3,363,046 6,784,619 Net cash provided by (used in) operating activities 920,167$ 1,521,623 $ 2,441,790 $ (1,713,131) $ (Concluded)
Business-Type Activities
Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended June 30, 2022
City of Gardena
See accompanying Notes to the Basic Financial Statements. 39 40
City of Gardena
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
(This page is intentionally left blank)
41 NOTES TO THE BASIC

FINANCIAL STATEMENTS
42 City of Gardena
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
(This page is intentionally left blank)
City of Gardena
Index to the Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
43 Note 1 – Summary of Significant Accounting Policies ..................................................................................... 45 A. Financial Reporting E ntity .................................................................................................................. 45 B. Basis of Accounting and Measurement Focus .................................................................................... 45 C. Cash, Cash Equivalents and Investments ............................................................................................ 48 D. Cash and Investments with Fiscal Agents ........................................................................................... 48 E. Fair Value Measurement ..................................................................................................................... 48 F. Interfund Transactions......................................................................................................... ................ 48 G. Inventories and Prepaid Items ............................................................................................................. 49 H. Capital Assets ...................................................................................................................................... 49 I. Deferred Outflows and Inflows of Resources ..................................................................................... 49 J. Interest Payable ................................................................................................................................... 50 K. Unearned Revenue .............................................................................................................................. 50 L. Compensated Absences ....................................................................................................................... 50 M. Leases .................................................................................................................................................. 50 N. Pensions....................................................................................................................... ........................ 51 O. Other Postemployment Benefits (“OPEB”) ........................................................................................ 52 P. Claims Payable .................................................................................................................................... 52 Q. Long-Term Debt .................................................................................................................................. 52 R. Property Taxes ................................................................................................................ .................... 53 S. Net Position and Fund Balances .......................................................................................................... 53 T. Use of Estimates .................................................................................................................................. 54 U. Implementation of New GASB Pronouncements ............................................................................... 55 Note 2 – Stewardship, Compliance and Accountability .................................................................................... 56 A. Deficit Net Position ............................................................................................................................. 56 B. Expenditures
in Excess of Appropriations .......................................................................................... 57 Note 3 – Cash and Investments ............................................................................................................................ 58 A. Deposits ............................................................................................................................................... 58 B. Investments ................................................................................................................... ...................... 59 C. Fair Value Measurement
..................................................................................................................... 60 D. Risk Disclosures .................................................................................................................................. 61 Note 4 – Other Receivables .................................................................................................................................. 62 A. YMCA Receivables .............................................................................................................. .............. 62 B. State Mandated Claims Reimbursement
............................................................................................. 62 Note 5 – Loans Receivable .................................................................................................................................... 62 A. Home-Owner Occupied Deferred Loans ............................................................................................. 62 B. Spring Park Senior Villa Developer Loan ........................................................................................... 63 Note 6 – Interfund Transactions .......................................................................................................................... 63 A. Government-Wide Financial Statements .......................................................................................... .. 63 B. Fund Financial Statements .................................................................................................................. 64 City of Gardena
Index to the Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2022

44 Note 7 – Capital Assets ......................................................................................................................................... 65

A. Governmental Activities ....................................................................................................... .............. 65 B. Business-Type Activities....................................................................................................... .............. 66

Note 8 – Long-Term Liabilities ............................................................................................................................ 67

A. Governmental Activities ....................................................................................................... .............. 67 B. Business-Type Activities....................................................................................................... .............. 72

Note 9 – Self-Insurance Programs ....................................................................................................................... 74

A. Self-Insurance Programs of the City ................................................................................................... 74 B. Purchased Insurance ............................................................................................................................ 74 C. Adequacy of Protection ....................................................................................................................... 74

Note 10 – Retirement Plans .................................................................................................................................. 75

A. California Public Employee’s Retirement System (“CalPERS”) ........................................................ 75 B. Public Agency Retirement System (“PARS”)..................................................................................... 84

Note 11 – Other Postemployment Benefits (“OPEB”) ....................................................................................... 84

Note 12 – Deferred Compensation Plan .............................................................................................................. 91

Note 13 – Net Position and Fund Balances ......................................................................................................... 91

A. Government-Wide Financial Statements .......................................................................................... .. 91 B. Fund Financial Statements .................................................................................................................. 92

Note 14 – Jointly Governed Organization .......................................................................................................... 93

Note 15 – Commitments and Contingencies ....................................................................................................... 93

City of Gardena
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
45 Note 1 – Summary of Significant Accounting Policies
The basic financial statements of the City of Gardena, 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 reportin g principles. The following is a summary of the significant policies:

A. Financial Reporting Entity
The City was incorporated
September 11, 1930, under the General Laws of the State of California. The City is governed b
y an elected five-member council.

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

Blended Component Unit
Management
determined that the following component unit should be blended based on the criteria above:

Although
the following is legally separate from the City, it has been “blended” as though it is part of the City because the component unit’s governing bod y is substantially the same as the City’s and there is a fina ncial benefit or
burden relationship between the City and the component unit; management of the City has operational responsibiliti
es for the component unit; and/or the component unit provides services entirely, or almost entirely, to the City
or otherwise exclusively, or almost exclus ively, benefits the City, even though it does not prov ide services dire
ctly to it.

City of Gard
ena Financing Agency - The City of Gardena Financing Agency (“the Agency”) was created primarily to finance the acquisition of a public parking structure. The members of the City Council serve as th e governin
g board of the Agency and there is a financial benefit or burden relationship between the City and th e Agency. The Agency does not issue separate financial
statements.

The City had
no discretely presented component units.

B. Basis of Accounting an
d Measurement Focus
The accounts of the City are organized
on the basis of funds, each of which is considered a separate accoun ting entity. The operations of each fund are accounted for by pr oviding 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 account
ed for in individual funds based upon the purposes for which they are to be spent and the means by which spendi
ng activities are controlled.

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

46 Note 1 – Summary of Significant Accounting Policies (Continued)

B. Basis of Accounting and Measurement Focus (Continued)

Government-Wide Financial Statements

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

Certain types of transactions are reported as program revenues for the City in three categories:
 Charges for services
 Operating grants and contributions
 Capital grants and contributions

Certain eliminations have been made in regards to in terfund activities, payables and receivables. All internal balances in the Statement of Net Position have been e liminated 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 Statemen t 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 and to other funds
 Transfers in and out

Governmental Fund Financial Statements

All governmental funds are accounted for on a spending or “current financial resources” measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the Balance Sheet. The Statement of Revenues, Expenditures and Changes in Fund Balances present increases (revenues and other financing sources) and decreases (expe nditures and other financing uses) in fund balances.

Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period.

Revenues are recognized as soon as they are both “measurable” and “available”. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For these purposes, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. The primary re venue sources, which have been treated as susceptible to accrual by the City, are property taxes, other local taxes, franchise fees, forfeitures and penalties, motor license fees, rents and concessions, interest revenue, and stat e and federal grants and subventions. Expenditures are recorded in the accounting period in which the related fund liability is incurred.

Reconciliations of the fund financial statements to the Government-Wide Financial Statements are provided to explain the differences.

Certain indirect costs are included as part of the program expenses reported for individual functions and activities.

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
47 Note 1 – Summary of Significant Accounting Policies (Continued) B.

Basis of Accounting and Measurement Focus (Continued)
Governmental Fund F
inancial Statements (Continued)
The City repo
rts the following major governmental funds:
 General Fund - The General Fund is used to account for and report all financial resources not accounted for and reported in another fund.
 Economic Development Grants Sp ecial Revenue Fund - The Economic Development Grants Special Revenue Fund is used to account for and report housing and environmental activities, including funding received from the U.S. D
epartment of Housing an d Urban Development and the U.S. Environmental Protection Agency, and to account for fees received from developers to fund parking, and park and recreation facilities.
 City Debt Service Fund - The City Debt Service Fund is used to account for and report financial resources that are restricted, committed or assigned to expenditure for principal and interest.

Proprietary Fund Fi
nancial Statements
Proprietary f
unds are accounted for using the “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the Statement of Net Position. The Statement of Revenues, Expenses and Changes in Net Position presents increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred.

Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and pr oducing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The prin cipal operating revenues of the proprietary funds are charges to customers for sales and services. Operating ex penses for the proprietary funds include the costs of sales and services, administrative expenses and deprecia tion on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

A separate column representing internal service funds is also presented in these statements. However, internal service balances and activities have been combined with the governmental activities and business-type activities in the Government-Wide Financial Statements. The City’s internal service funds include three individual funds which provide services directly to other City funds. These areas of service include general liability, workers’ compensation, and health benefits.

The City reports the following proprietary funds:
 GTrans Enterprise Fund - The GTrans Fund accounts for user charg es, fees, federal, state and county grants and all operating costs associated with the operation of the City’s bus line.  Sewer Enterprise Fund (Nonmajor) - The Sewer Fund accounts for user charges, fees and all operating costs associated with th e operation, maintenance, upgrade and pe riodic reconstruction of th e City’s sanitary sew
er system.

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

48 Note 1 – Summary of Significant Accounting Policies (Continued)

B. Basis of Accounting and Measurement Focus (Continued)

Proprietary Fund Financial Statements (Continued)

 Internal Service Funds – The Internal Service Funds account for financing of goods and services provided by one department (general liability, workers’ compen sation, and health benef its) to other departments of the City on a cost-reimbursement basis.

The City considers the GTrans Enterprise Fund a major fund for the year ended June 30, 2022.

C. Cash, Cash Equivalents, and Investments

The City’s cash and cash equivalents are considered to be cash on hand, dema nd deposits, and short-term investments with original maturity of three months or less from the date of acquisition. All cash and investments of proprietary funds are held in the City's investment pool. These cash pools have the general characteristics of a demand deposit account, therefore, all cash and investments in the proprietary funds are considered cash and cash equivalents for Statement of Cash Flows purposes.

Investments are stated at fair value.

D. Cash and Investments with Fiscal Agents

Cash and investments with fiscal agents are restricted for the redemption of bonded debt and for acquisition and construction of capital projects.

E. Fair Value Measurement

U.S. GAAP defines fair value, establishes a framework for measuring fair value and establishes disclosure about fair value measurement. Investments, unless otherwise speci fied at fair value in the financial statements, are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Levels of inputs are as follows:

 Level 1 –
Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date.
 Level 2 – Inputs, other than quoted prices included in Level 1, that are observable for the assets or liabilities through corroboration with market data at the measurement date.  Level 3 – Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the assets or liabilities at the measurement date.

F. Interfund Transactions

Activity between funds that are representative of lending/ borrowing arrangements outstanding at the end of the fiscal year are referred to as “due from/to other fund s” (i.e., current portion of interfund loans). Any residual balances outstanding between the governmental activiti es and business-type activities are reported in the Government-Wide Financial Statements as “internal balances”.

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
49 Note 1 – Summary of Significant Accounting Policies (Continued) G. Inventories and Prepaid Items
Inventories within the various fund types consist of materials and s upplies which are valued at cost on a first-in,
first-out basis. Reported expenditures reflect the c onsumptio n method of recogni zing inventor y-related
expenditures.

Certain payments to vend
ors reflect costs applicable to future accounting periods and are reco rded as prepaid items in both
the government-wide and fund financial statements by using purchase method.

A nonspenda
ble fund balance has been reported in the govern mental funds to show that inventories and prepaid items do not
constitute “available spendable resources,” even though they are a component of current assets.

H. Capital Assets
In the Government-Wide Financial Statements, capi
tal assets are recorded at cost wh ere historical records are available and at an estimated original cost where no historical records exist. Donated capital assets are valued at their acquisition value. City policy
has set the capitalization threshold for reporting capital assets at $5,000.

The City defines infrastruc
ture assets as the basic physical assets that a llow the City to function. The assets include streets, bridges, sidewalks, drainage systems, and lighting systems, etc. Each major infrastructure system can be divi
ded into subsystems. For example, the str eet system can be subdivided into pavement, curb and gutters, sidewalks, medians, streetlights, landscaping and land. These subsystems were not delineated in the basic financial statements. The appropriate op
erating department maintains information regarding the subsystems.

Major outlays for capital asset
s and improvements are capitalized as projects are constructed. Capital assets acquired under capital lease are capitalized at the net present value of the total lease payments.

For all infrastructure syste
ms, the City elected to use the “Basic Approach”.

Capital assets used in oper
ations are depreciated over their estimated useful lives using the straight-line method.

The lives used for depreciation purposes are as follow
s:

Buildings/structures and improvements 40 years
Machinery and equipment 3-15 years
Buses 12 years
Furniture and fixtures 3-10 years
Infrastructure 30
-60 years
I. Defe
rred Outflows and Inflows of Resources
The statement of net position reports separate sections for deferred outflows of resources and deferred inflows of resources, when applicable.

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

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

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

50 Note 1 – Summary of Significant Accounting Policies (Continued)

J. Interest Payable

In the Government-wide Financial Statements, interest pa yable on long-term debt is re cognized as the liability incurred for governmental activities and business-type activities.

In the Fund Financial Statements, only proprietary fund types recognize the interest payable when the liability is incurred.

K. Unearned Revenue

Unearned revenue is recognized for transactions for which revenue has not yet been earned. Typical transactions recorded as unearned revenues are prepaid charges for services and grants received but not yet earned.

L. Compensated Absences

It is the City’s policy to accrue annual leave when in curred in the Government-wide Financial Statements and the proprietary funds. In governmental funds, the costs fo r annual leave that are expected to be liquidated with expendable available financial resources are reported as an expenditure and reported as a liability of the governmental fund only if they have matured.

A liability is recorded for unused sick leave balances only to the extent that it is probable that the unused balances will result in termination payments. This is estimated by including in the liability the unused balances of employees currently entitled to receive termination benefits, as well as those who are expected to become eligible to receive termination benefits as a result of continuing their employment with the City. Other amounts of unused sick leave are excluded from the liability since their payment is contingent solely upon the occurrence of a future event (illness) which is outside the control of the City and the employee.

M. Leases

Lessee

The City has a policy to recognize a lease liability and a right-to-use asset (lease asset) in the financial statements with an initial, individual value of $5, 000 or more with a lease term greater than one year. Variable payments based on future performance or usage of the underlying assets are not included in the measurement of the lease liability.

At the commencement of a lease, the lease liability is measured 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.

Lease assets are recorded at the am ount of the initial measurement of th e lease liabilities and modified by any lease payments made to the lessor at or before the commencement of the lease term, less any lease incentives received from the lessor 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 u seful life of the underlying asset, unless the lease contains a purchase option that the State has determined is reasonabl y certain of being exercised. In this case, the lease asset is amortized over the useful life of the underlying asset.

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
51 Note 1 – Summary of Significant Accounting Policies (Continued) M. Leases (Cont inued)
Less
ee (Continued)
Key estimates and judgments related to
leases include how the City de termines (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 the interest rate charged by the lessor as the discount rate. When th e interest rate charged by the lessor is not provided, the City generally uses its esti mated incremental borrowing rate as the
discount rate for leases.
 The lease term includes the noncancelable period of the lease, plus any option periods that are reasonably certain to be exercised.
 Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the City is reasonably cert ain to exercise. The Ci ty monitors changes in circumst
ances that would require a remeasurement of a 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.

Lease
assets are reported as right-to-use along with other capital assets and lease liabilities are reported on the statement of net position.

N. Pensions
For purposes of measuring the
net pe nsion liability, deferred outflows of resources a nd deferred inflows of resources related to pensions, and pensi
on 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 paymen ts (including refunds of employee contributions ) are recognized when due and
payable in accordance with benefit terms. Investments are reported at fair value.

The
following timeframes are used for pension reporting:

V aluation Date June 30, 2020
Measurement Date June 30, 2021
Measurement Period July 1, 2020 to June 30, 2021
Gains and losses r
elated 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 categor ized 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 av erage expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period.

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

52 Note 1 – Summary of Significant Accounting Policies (Continued)

O. Other Postemployment Benefits (“OPEB”)

For the purpose of measuring the net OPEB liability, defe rred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s OPEB Plan and additions to/deductions from the 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.

The following timeframes are reported OPEB reporting:

OPEB
Valuation Date June 30, 2020
Measurement Date June 30, 2021
Measurement Period July 1, 2020 to June 30, 2021

Gains and losses related to changes in total OPEB liab ility 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 categor ized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense. The amortization period differs depending on the sources of gain or loss. The difference between projected and actual earnings is amortized on a straight-line basis over 5 years. All other amounts 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.

P. Claims Payable

Claims payable in the Internal Service Fund represents estimates of claims against the City. The estimated claims payable represents the City’s best estimate of the amount to be paid on workers’ compensation and general liability claims. Losses for claims incurred but not reported are also recorded if the probable amount of loss can be reasonably estimated. The City is self-insured for general liability in the amount of $750,000 per claim for both City and GTrans and workers’ compensation for $750,000 per claim for both the City and GTrans. Losses in excess of $750,000, up to $25,0 00,000 for general liability, and in excess of $750,000 for both the City and GTrans, up to the statutory limit for workers’ compensation, are covered by outside insurance.

Q. Long-Term Debt

In the Government-Wide Financial Statements and Propr ietary Fund Financial Statem ents, long-term debt and other long-term obligations are reported as liabilities in the appropriate activities. Bond premium and discounts are deferred and amortized over the life of the bonds us ing the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are expensed when incurred.

The governmental fund financial statements do not presen t long-term liabilities. Con sequently, long-term debt is shown as a reconciling item in th e Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position.

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
53 Note 1 – Summary of Significant Accounting Policies (Continued) R. Property Taxes
Under California law, property taxes are assessed and collected by the counties for up to 1% of assessed property value, plus other increases approved by the voters. Property taxes collected are pooled and then allocated to the cities based on complex formulas. The following are
key dates pertaining to property taxes:

January 1 Lien Date
June 30 Levy Date
November 1 and February 1 Due Dates
December 10 and April 10 Collection Dates
Distribution Dates:

November 20, 2021 Unsecured, redemptions, and SB813 taxes December 20, 2021 Homeowners' exemption, secured, and SB813 taxes January 20, 2022 Homeowners' exemption, secured, and SB813 taxes February 18, 2022 Redemptions, secured, and SB813 taxes March 18, 2022 Secured and SB813 taxes
April 20, 2022 Secured and SB813 taxes
May 20, 2022 Redemptions, homeowners' exemption, secured, and SB813 taxes June 17, 2022 Homeowners' exemption, SB813 taxes
July 20, 2022 Secured and SB813 taxes
August 20, 2022 Secured, redemptions, unsecured, and SB813 taxes S. Net Position and Fund Balances
In the Government-Wide Financial Statements and proprietary fund financial statements, net position is classified
as follows:

Net Investm
ent in Capital Assets – This component of net position consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of retention payable and debt that are attributable to the acquisition, construction, or improvement of those assets.

Restricted – This component of net positi on consists of restricted assets reduced by liabilities and deferred outflows and 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.

In the Governmental Fund Financial Statements, fund balances are classified as follows:

Nonspendable – Nonspendable fund balances are items that cannot be spent because they are not in spendable form, such as prepaid items and inventories, or item s that are legally or contractually required to be maintained intact, such as principal of an endowment or revolving loan funds.

Restricted – Restricted fund balances encompass the portion of net fund resources subject to externally enforceable legal restrictions. This includes externally imposed restrictions by creditors, such as through debt covenants, grantors, contributors, la ws or regulations of other governmen ts, as well as restrictions imposed by law through constitutional provisions or enabling legislation.

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

54 Note 1 – Summary of Significant Accounting Policies (Continued)

S. Net Position and Fund Balances (Continued)

Committed – Committed fund balances encompass the portion of net fund resources, the use of which is constrained by limitations that the government imposes upon itself at its highest level of decision making, normally the governing body, and that remain binding unless removed in the same manner. The City Council is considered the highest authority for the City. Adop tion of a resolution by the City Council is required to commit resources or to rescind the commitment.

Assigned – Assigned fund balances encompass the portion of net fund resources reflecting the government’s intended use of resources. Assignment of resources can be done by the highest level of decision making or by a committee or official designated for that purpose. The City Council has authorized by resolution the City Manager or the City Fiscal Officer for that purpose.

Unassigned – This amount is for any portion of the fund ba lances that do not fall into one of the above categories. The General Fund is the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it is not appropriate to report a positive unassigned fund balance amount. However, in governmental funds other than General Fund, if expenditures incurred for sp ecific 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.

Spending Policy

Government-Wide Financial Statements and the Proprietary Fund Financial Statements

When expenses are incurred for purpo ses for which both restricted and unrestricted components of net position are available, the City’s policy is to apply the restricted component of ne t position first, then the unrestricted component of net position as needed.

Governmental Fund Financial Statements

When expenditures are incurred for purposes for which all restricted, committed, assigned and unassigned fund balances are available, the City’s policy is to apply in the following order, ex cept for instances wherein an ordinance specifies the fund balance:

 Restricted
 Unassigned
 Committed
 Assigned

T. Use of Estimates

The preparation of the basic financial statements in c onformity 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 Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
55 Note 1 – Summary of Significant Accounting Policies (Continued) U. Implementation of New GASB Pronouncements
During the fiscal year ended June 30, 2022, the City implemented the following new GASB pronouncemen ts:

GASB Statement No. 87
– In June 2017, GASB issued Statement No. 87, Leases (GASB Statement No. 87), to better meet the information needs of fina
ncial statement users by improving accounting and fi nancial reporting for leases by governments. This statement increases the usefulne ss of governments’ financial statemen ts by
requiring recognition
of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or out
flows of resources based on the payment provisions of the contract. It also establishes a single model for lease accounting ba sed on the foundational principle that le ases
are financings of the right to use an underlying asset.

Implementation of this Statement had a significant effect on the City’s financial statements for the fiscal year ended June 30, 2022.

GASB Statement No. 89 – In June 2018, GASB is
sued Statement No. 89, Accounting for Interest Cost Incurred before the En
d of a Construction Period . This Statement establishes accounti ng requirements for interest cost incurred befo
re the end of a construction period. Such in terest cost includes all interest that previously was accounted for in accordance with the requirements of pa ragraphs 5–22 of Statement No. 62, Codification of Accounting and Financial Reporting Guidance Co
ntained in Pre–November 30, 1989 FA SB and AICPA
Pronou
ncements, which are superseded by this Statement. This Statement requires that inte rest cost incurred before the end of a construction period be recognized as an expen se in the period in which th e cost is incurred
for financial
statements prepared using the economic r esources measurement focus. As a result, interest cost incurred before the end of
a construction period will not be included in the historical cost of a capital asset reported in a business–type activity or enterprise fund. Implementation of this Statement did not have a significant effect on the City’s financial statements for the fiscal year ended June 30, 2022.

GASB Statement No. 92
– In January 2020, GASB issued Statement No. 92, Omnibus 2020 . The primary objectives of this Statement are to enhance comparabi lity in accounting and financia l reporting and to improve consistency of authoritative litera ture by addressing practice issues that have been identified durin g implementati
on and application of certain GASB Statemen ts. Implementation of this Statement did not ha ve a significant effect on the City’s financial state
ments for the fiscal year ended June 30, 2022.

GASB Statement No. 93 – In March 2020, GASB issued Statement No. 93, Replacement o f Interbank Offered
Rates. Some governments have entered into agreements in which variable payments made or received depend on an interbank offered rate (IBOR)—most notably, the London Interbank Offered Rate (LIBOR). As a result of global reference rate reform, LIBOR is expected to cease to exist in its current form at the end of 2021, prompting governments to amend or replace financi
al instruments for the purpose of replacing LIBOR with other reference rates, by either changing t
he reference rate or adding or changing fallback provisions related to the reference rate.

The objective of this Statement is to address those and other accounting and financial reporting implications that result from the replacement of an IBOR. Implementation of this Statement did not have a significant effect on the City’s financial statements for the fiscal year end ed June 30, 2022.

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

56 Note 1 – Summary of Significant Accounting Policies (Continued)

U. Implementation of New GASB Pronouncements (Continued)

GASB Statement No. 97 – In June 2020, GASB issued Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans – An Amendment of GASB Statements No. 14 and No. 84, and a Supersession of GASB Statement No. 32. The primary objectives of this Statement are to (1) increase consistency and comparability related to the reporting of fiduciary component units in circumstances in which a potential component unit does not have a governing board and the primary government performs the duties that a governin g board typically would perform; (2) mitigate costs associated with the reporting of certain defined cont ribution pension plans, de fined contribution other postemployment benefit (OPEB) plans, and employee bene fit plans other than pension plans or OPEB plans (other employee benefit plans) as fiduciary component units in fiduciary fund financial statements; and (3) enhance the relevance, consistency, and comparability of the accounting and financial reporting for Internal Revenue Code (IRC) Section 457 deferred compensation plans (Section 457 plans) that meet the definition of a pension plan and for benefits provide d through those plans. Implementation of this Statement did not have a significant effect on the City’s financial statements for the fiscal year ended June 30, 2022.

Note 2 – Stewardship, Compliance and Accountability

A. Deficit Net Position

In the Government-Wide Financial Statements, the City had a deficit unrestricted net position at June 30, 2022 for its governmental activities of $(95, 499,040) and business-type activities of $(33,216,568). The deficit was mainly due to the reporting of the aggregate net O PEB liabilities. The aggregate net OPEB liabilities were $76,280,979 and $6,448,522 for governmental activities and business-type activities, respectively.

The following funds had a deficit fund balance/net position at June 30, 2022:

Nonmajor Governmental Funds:

Public Safety Grants Special Revenue Fund (172,103)$
Internal Service Funds:

Liability Insurance Fund (959,836)
Workers' Compensation Fund (10,587,033)

In addition, the GTrans Enterprise had deficit unrestricted net position of $(24,852,296) at June 30, 2022.

The net position balance includes both short and long-ter m liabilities. The deficit balances are expected to be recovered through future interfund transfers and other revenues as applicable for this purpose.

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

57 Note 2 – Stewardship, Compliance and Accountability (Continued)

B. Expenditures in Excess of Appropriations

The following funds had expenditures in excess of appropriations:

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

General Fund
General government:

City clerk 584,044$ 667,308$ 83,264$ City treasurer 271,815 295,387 23,572 Non-departmental 672,397 856,286 183,889 Public Safety:

Community development 1,986,333 2,410,655 424,322 Economic Development Grants Special Revenue Fund
Capital outlay - 62,734 62,734 City Debt Service Funds: 2021 Lease revenue bondss Debt Service Fund Debt service:

Interest and fiscal charges 331,216 573,827 242,611 Nonmajor Governmental Funds:

Gas Tax Special Revenue Fund
Public works 281,503 555,718 274,215 Public Safety Grants Special Revenue Fund
General government - 99,443 99,443 Public works - 1,765 1,765 Recreation and human services - 6,422 6,422 Community development - 12,861 12,861 Public Works Grants Special Revenue Fund
Public works 427,264 473,972 46,708 Recreation and human services - 12,682 12,682 Human Services Grants Special Revenue Fund
Recreation and human services 3,902,809 3,988,295 85,486

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

58 Note 3 – Cash and Investments

The City maintains a cash and investment pool, which includes cash balances and authorized investments of all funds.

Certain restricted funds which are held and invested by independent outside custodians through contractual agreements are not pooled. These restricted funds include cash and investments with fiscal agents.

The City had the following cash and investments at June 30, 2022:

Governmental Business-Type
Activities Activities Total
Cash and investments 69,098,624 $ 18,914,863 $ 88,013,487 $ Cash and investments held by fiscal agents 13,436,529 - 13,436,529 Total cash and investments 82,535,153$ 18,914,863 $ 101,450,016 $ Government-Wide Financial Statement

The City’s cash and investments at June 30, 2022, in more detail:

Cash:

Petty cash 6,560 $
Demand deposits 13,727,565
Total cash and cash equivalents 13,734,125
Investments:

Money market mutual fund 6,718,971
U.S. Treasury 14,962,709
Negotiable certificates of deposit 3,289,290
Corporate notes 5,022,901
Local Agency Investment Fund 37,221,443
U.S. Government sponsored enterprise securities 5,303,058 Foreign negotiable certificates of deposit 1,760,990
Total investments 74,279,362
Total cash and investments 88,013,487
Cash and investments with fiscal agents 13,436,529
Total 101,450,016$

A. Deposits

The carrying amounts of the City’s demand deposits were $13,727,565 at June 30, 2022. Bank balances at that date were $15,150,251, the total amount of which was collateralized or insured with accounts held by the pledging financial institutions in the City’s name as discussed below.

The California Government Code requires California banks and savings and loan associations to secure the City’s cash deposits by pledging securities as collateral. This C ode 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.

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
59 Note 3 – Cash and Investments (Continued)
A. Deposits (Continued)
The market v
alue of pledged securities must equal at least 110% of the City's cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of
the City’s total cash deposits. The City may waive collateral requirements for cash deposits, deposits, which are fully insured
up to $250,000 by the Federal Deposit Insurance Corporation (“FDIC”). The City did not waive the collateral req
uirement for deposits insured by FDIC.

The City follows the pract
ice 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 accounti
ng period basis to the vari ous funds based on the period-end cash and i nvestment balances. Interest income
from cash and investments with fiscal agents is credited directly to the related fund.

B. Invest
ments
Under the provisions of the City’s investment policy, and in accordance with Ca lifornia Government Code, the following investments are authorized:

Ma x i m um Ma x i m um
Maximum Percentage Investment in
Authorized Investment Type Maturity of Portfolio * One Issuer Municipal securities 5 years 30% 5%
United states treasury obligations 5 years No Limit No Limit U.S. Government sponsored enterprise securities 5 years No Limit 25% Bankers' acceptances 180 days 40% 5%
Commercial paper 270 days 25% 5%
Negotiable certificates of deposit 5 years 30% 5%
Federally insured time deposits 5 years 20% Federally Insured Collateralized time deposits 5 years 20% Federally Insured Certificate of deposit placement service ("CDARS") 5 years 30% Federally Insured Local Agency Investment Fund ("LAIF") N/A No Limit No Limit Medium-term notes 5 years 30% 5%
Asset-Backed, M ortgage-Backed, M ortgage Pass-
Through Securities, and Collateralized Mortgage
Obligations 5 years 20% 5%
Mutual funds N/A 20% 10%
Money market mutual funds N/A 20% 20%
Supranationals 5 years 30% 10%
Investment Trust of California ("CalTrust") N/A No Limit No Limit N/A - Not Applicable
* E
xcluding amounts held by bond trustees that are not subject to California Government Code restrictions.

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

60 Note 3 – Cash and Investments (Continued)

B. Investments (Continued)

The City is a participant in LAIF which is regulat ed by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The City’s investments with LAIF at June 30, 2022, included a portion of the pool funds invested in Structured Notes and Asset-Backed Securities:

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

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

As of June 30, 2022, the City had $37,221,443 invested in LAIF, which had invested 1.14% of the pool investment funds in Structured Notes and Asset-Backed Securities. Th e fair value of the City’s portion in the pool is the same as the value of the pool shares and reported at amortized cost.

C. Fair Value Measurement

At June 30, 2022, investments are reported at fair value. The following table presents the fair value measurements of investments on a recurring basis and the levels with GASB 72 fair value hierarchy in which the fair value measurements fall at June 30, 2022:

Quoted Prices
in Active Significant
Markets for Other Observable
Identical Assets Inputs
Investment Type (Level 1) (Level 2) Uncategorized(3)
Total
Money market mutual fund - $ - $ 6,718,971$ 6,718,971 $ U.S. Treasury 14,962,709 - - 14,962,709 Negotiable certificates of deposit (1)
- 3,289,290 - 3,289,290 Corporate notes (1)
- 5,022,901 - 5,022,901 Local Agency Investment Fund - - 37,221,443 37,221,443 U.S. Government sponsored enterprise securities (1)
5,269,397 33,661 - 5,303,058 Foreign negotiable certificates of deposit (2)
- 1,760,990 - 1,760,990 Cash and investments with fiscal agents:

Money market mutual fund - - 13,436,529 13,436,529 Total 20,232,106$ 10,106,842 $ 57,376,943 $ 87,715,891 $ (1) Pricing based on Institutional Bond Quotes - evaluations based on various market and industry inputs. (2) Pricing based on Intercontinental Exchange Extel Financial Ltd - evaluations based on various market factors. (3) Cash and cash equivalent.

M easurement Input

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
61 Note 3 – Cash and Investments (Continued)
D. Risk Disclosures
Interest Rate Risk - As a means of limiting its exposure to fair valu e losses arising from rising interest rates, th e City’s investment policy limits investments to a maximum maturity of five years. At June 30, 2022, the City had the following investment maturities:

Investment Ty p e Fair Value Less Than 1 Year 1 to 2 Years 2 to 3 Years 3 to 4 Years 4 to 5 Years Money market mutual fund 6,718,971$ 6,718,971$ -$ -$ -$ -$ U.S. Treasury 14,962,709 4,105,836 4,085,805 2,764,802 2,393,970 1,612,296 Negotiable certificates of deposit 3,289,290 1,713,125 153,535 571,295 426,627 424,708 Corporate notes 5,022,901 1,401,943 2,238,328 1,261,301 84,956 36,373 Local Agency Investment Fund 37,221,443 37,221,443 - - - - U.S. Government sponsored enterprise securities 5,303,058 1,643,082 2,221,412 1,117,229 321,335 - Foreign negotiable certificates of deposit 1,760,990 - 878,706 882,284 - - Cash and investments with fiscal agents:

Money market mutual fund 13,436,529 13,436,529 - - - - Total 87,715,891$ 66,240,929$ 9,577,786$ 6,596,911$ 3,226,888$ 2,073,377$ Investment Maturities (in Years)
Custodial Credit Risk - Fo
r deposits, custodial credit risk is the risk that, in the event of the failure of a depository financial institution, the City will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer), the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party.

Credit Risk - State law limits investments in commercial paper and corporate bonds to the top two ratings issued by nationally recognized statistical rating organizations (NRSROs). It is the City’s policy to limit its investments in these investment types to the top rating issued by Standard & Poor’s and Moody’s Investors Service. At June 30, 2022, the City’s credit risks, expressed on a percentage basis, were as follows:

Moody's S&P's % of Investments
Cre
dit Credit with Interest
Investment Type Rating Rating Rate Risk
Local Agency Investment Fund Not Rated Not Rated 50.11% U.S. Treasury AAA Not Rated 20.14%
U.S. Government sponsored enterprise securities AAA AA+ 7.14% Negotiable certificates of deposit Not Rated Not Rated 4.43% Foreign negotiable certificates of deposit A2 Aa 2.37%
Corporate notes A A 6.76%
Money market mutual fund P-1 Aa 9.05%
Total 100.00%
Credit Quality Distribution for Securities
with Credit Exposure as a Percentage of Total Investments City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

62 Note 4 – Other Receivables

A. YMCA Receivables

In February 1994, the City entered into a long-term lease contract to lease land to the YMCA for construction of a new YMCA facility that would benefit the community. The facility opened on February 6, 1995 with a 30-year lease term, ending in 2024. Under the terms of the agreem ent, the maximum amount that the City could receive was $1,400,000. This amount is payable in monthly payments, with annual rent adjustments over a 30-year lease term. In May 2022, the monthly pa yment was decreased from $764 to $71 per month. At the adjustment date, annual rent was equal to total rent of $1,400,000 less all previous payments, multiplied by the six-month average LAIF interest rate. The lease includes two 25-year options to renew and an option to purchase the land at the end of the lease for the amount of $1,400,0 00 reduced by the amount already paid as of the time of purchase. As of June 30, 2022, future lease payments from the YMCA, including interest, were $372,874. Since the City has not earned the revenue for the future lease payments, there was no revenue recognized or receivables reported at June 30, 2022 for these future lease payments.

B. State Mandated Claims Reimbursement

The City recorded an outstanding receivable of $726,616 for the State Mandated Claims Reimbursement (SB90 Claims) from the State of California (the “State”). Th e payments of the mandated claims reimbursement are subject to State approval and manage ment cannot estimate the timing and am ount of the payments that will be made and reported an allowance for doubtful accounts in the amount of $726,616. As a result, both the General Fund in the governmental fund financial statements and governmental activities in the government-wide financial statements reported zero balances for accounts receiva ble associated with the State Mandated Claims Reimbursement as of June 30, 2022.

Note 5 – Loans Receivable

Loans receivable consists of Home-Owner Occupied Deferr ed Loans and Spring Park Senior Villa Developer Loan as following:

Balance Balance
July 1, 2021 Additions Deletions Allowance June 30, 2022 Home-Owner Occupied Deferred Loans
CalHOME 399,609 $ - $ (27,515)$ - $ 372,094$ State HOME Loans 1,721,890 - (127,040) - 1,594,850 Subtotal 2,121,499 - (154,555) - 1,966,944 Spring Park Senior Villa Developer Loan 3,545,880 86,223 - (3,632,103) - Total 5,667,379$ 86,223 $ (154,555) $ (3,632,103) $ 1,966,944 $

A. Home-Owner Occupied Deferred Loans

The City issues deferred payment loans to home owners funded by the Federal Home Investment Partnerships Program (“HOME Program”) and CalHOM E to improve the living conditions of the lower income families.

These loans are to be repaid to the Ci ty, and the repayments of the loans are used to fund future home-owner occupied deferred loans. As of June 30, 2022, the outstanding loan balance is $1,966,944.

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
63 Note 5 – Loans Receivable (Continued)
B. Spring Park Senior Villa Developer Loan
The City entered into a development agreement on August 1, 2013, with Spri ng Park Seni or Villa, Inc., a
nonpr
ofit organization for the development of the Spring Park Senior Villa in the City. The agreement provided fundin
g for the development of 36 rental units and one manager unit (“the Project”) up to $2,874,115 fo r construction.

The loan bears 3% simple interest over a te rm of 55 years. The repayment of the loan is based on the residual receipts of the rental units. The affordability covenant also expires in 55 years after completion of
the project.

As of June 30, 2022, the City funded $2,8 74,115 for the development of the project and accrued interest in the amount of $757,988 which was required by the State of California. This results the City in reporting loans receivable in the amount of $3,632,103. However, management estimated that the loans will not be repaid due to negative residual receipts and reported an allo wance for doubtful accounts in the amo unt of $3,632,103.

As a result, b
oth the Economic Development Grants Sp ecial Revenue Fund in the governmental fund fina ncial statements and g
overnmental activities in the government -wide financial statements reported zero balanc es for loans receivable associated
with the Spring Park Senior Villa as of June 30, 2022.

Note 6 – Interfund Transactions
A.

Government-Wide Financial Statements
Internal Bal
ances - At June 30, 2022, the City had the follo wing internal receivable an d payable, which represents int
ernal service charges between the governmental activities and business-type activities:

Internal Payable
Business-Type
Internal Receivable Activities
Governmental Activities 12,426,495 $
Transfer
s – For the year ended June 30, 2022, the City had the following transfers:

Transfers Out
Business-Type
Transfers In Activities
Governmental Activities 344,181 $
The pur
poses of the transfers were for subsidizing the governmental activities for public works engineering job costs and administrative costs.

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

64 Note 6 – Interfund Transactions (Continued)

B. Fund Financial Statements

Due From/To Other Funds - At June 30, 2022, the City had the following due from/to other funds:

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

Economic Development Grants
Special Revenue Fund 251,866 $
City Debt Service Fund 372,250
Nonmajor Governmental Funds 1,494,423
Proprietary Fund:

GTrans Enterprise Fund 1,791,787
Total 3,910,326$

The above amounts resulted from temporary reclassifications made at June 30, 2022 to cover cash shortfalls.

Transfers In/Out – During the year ended June 30, 2022, the City had the following transfers in/out, which arise in the normal course of operations:

Nonmajor
Sewer
General City Nonmajor Enterprise Internal
Transfers Out Fund Debt Service Governmental Fund Service Funds Total Governmental Funds:

General Fund - $ 2,585,364$ 928,156 $ - $ 5,000,000$ 8,513,520 $ Economic Development Grants
Special Revenue Fund - - 697,700 - - 697,700 Debt Service Fund 3,617,687 3,617,687
Nonmajor Governmental
Funds 5,299,125 - 2,882,630 45,275 - 8,227,030 Enterprise Funds:

Sewer 143,149 - 246,307 - - 389,456 Internal Service Funds - - - - 1,604,982 1,604,982 Total 5,442,274$ 2,585,364 $ 8,372,480 $ 45,275 $ 6,604,982$ 23,050,375 $ Transfers In
Governmental Funds Enterprise Funds

Administratively, resources may be transferred from one City fund to another. The purpose of the majority of transfers was to provide funding for other funds with the City Council’s approvals, such as debt service, capital projects and internal service funds.

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
65 Note 7 – Capital Assets
A. Govern ment al Activities
A summary of changes in the capital assets for the governmental activities for the year ended June 30, 2022 is as follows:

Balance
July 1, 2021 Balance
(As Restated) Additions Deletions Transfers June 30, 2022 Capital assets, not being depreciated:

Land 9,708,520$ 1,836,052$ -$
-$
11,544,572$
Monuments 63,893 - - - 63,893
Construction in progress 3,580,865 1,160,820 -
(2,493,700)
2,247,985
Total capital assets, not being depreciated 13,353,278 2,996,872 - (2,493,700)
13,856,450
Capital asse ts, being depreciate d:

Buildings/structures and improvements 24,138,320 2,064,036 - 62,204
26,264,560
M achinery and equipment 12,895,648 452,203 (499,558) - 12,848,293
In
frastructure:

Street lights network 1,292,393 1,768,072 -
2,431,496 5,491,961
T
raffic lights network 12,940,788 - - - 12,940,788 R
oadway network 57,773,073 - - - 57,773,073 T
otal capital assets, being depreciated 109,040,222 4,284,311 (499,558) 2,493,700 115,318,675 Less accumulated depreciation:

Buildings/structures and improvements (18,542,164) (637,277) - - (19,179,441) M achinery and equipment (9,249,193) (1,111,553) 476,273 - (9,884,473)
In
frastructure:

Street light network (990,836) (43,080) - - (1,033,916) T
raffic lights network (12,245,472) (431,360) - - (12,676,832) Ro
adway network (31,034,822) (1,199,905) - - (32,234,727) T
otal accumulated depreciation (72,062,487) (3,423,175) 476,273 - (75,009,389) L
ease assets:

Buildings/structures and improvements 40,074 - - - 40,074 M achinery and equipment 341,622 150,139 - - 491,761 Total lease assets 381,696 150,139 - - 531,835 Less accumulated amortization:

Buildings/structures and improvements -
(24,328)
- - (24,328)
M achinery and equipment -
(184,339)
- - (184,339)
Total accumulated depreciation -
(208,667)
- - (208,667)
Total capital assets, being depreciated, net 37,359,431 802,608 (23,285) 2,493,700 40,632,454 Governmental activities
capital assets, net 50,712,709$ 3,799,480$ (23,285)$ -$ 54,488,904$
Governmental Activities
Depreciation and amortization expenses were charged to functions/programs of the governmental activities for the fiscal year ended June 30, 2022 as follows:

Depreciation Amortization
General government 809,141$ 66,919$
Public safety 675,054 80,890
Public works 1,838,681 27,314
Community development -
26,859
Re
creation and human services 100,299 6,685
T
otal depreciation expense 3,423,175$ 208,667$
City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

66 Note 7 – Capital Assets (Continued)

B. Business-Type Activities

A summary of changes in the capital assets for the business-type activities for the year ended June 30, 2022 is as follows:

Balance
July 1, 2021 Balance
(As Restated) Additions Deletions Transfers June 30, 2022 Capital assets, not being depreciated:

Land 12,956,405 $ - $ - $ - $ 12,956,405$ Construction in progress 1,865,040 3,919,887 - (914,678) 4,870,249 Total capital assets, not being depreciated 14,821,445 3,919,887 - (914,678) 17,826,654 Capital assets, being depreciated:

Buildings/structures and improvements 39,893,428 - - - 39,893,428 Buses 47,860,722 - (3,429,407) 456,172 44,887,487 Machinery and equipment 11,358,302 510,766 (101,215) 385,299 12,153,152 Furniture and fixtures 1,552,314 - - 73,207 1,625,521 Infrastructure 11,184,496 - - - 11,184,496 Total capital assets, being depreciated 111,849,262 510,766 (3,530,622) 914,678 109,744,084 Less accumulated depreciation:

Buildings/structures and improvements (12,786,354) (1,022,908) - - (13,809,262) Buses (33,366,052) (2,455,187) 3,429,407 - (32,391,832) Machinery and equipment (8,407,108) (1,191,711) 101,215 - (9,497,604) Furniture and fixtures (1,485,742) (45,193) - - (1,530,935) Infrastructure (10,594,937) (33,689) - - (10,628,626) Total accumulated depreciation (66,640,193) (4,748,688) 3,530,622 - (67,858,259) Total capital assets, being depreciated, net 45,209,069 (4,237,922) - 914,678 41,885,825 Lease assets:

Machinery and equipment 304,112 - - - 304,112 Total lease assets 304,112 - - - 304,112 Less accumulated amortization:

Buildings/structures and improvements - (152,056) - - (152,056) Total accumulated depreciation - (152,056) - - (152,056) Total capital assets, being depreciated, net 45,513,181 (4,389,978) - 914,678 42,037,881 Business-type activities
capital assets, net 60,334,626$ (470,091) $ - $ - $ 59,864,535$ Business-Type Activities

Depreciation and amortization expenses for business-type activities for the year ended June 30, 2022 was charged as follows:

Depreciation Amortization
Gtrans major enterprise fund 4,603,923 $ 152,056
Sewer nonmajor enterprise fund 144,765 -
Total depreciation expense 4,748,688$ 152,056 $

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

67 Note 8 – Long-Term Liabilities

A. Governmental Activities

A summary of changes in long-term liabilities for governmental activities for the year ended June 30, 2022 is as follows:

Balance
July 1, 2021 Balance Due within Due in more
(As Restated) Additions Deletions June 30, 2022 One Year One Year 2006 Refunding Certificates of
Participation Series A - publicly offered 7,150,000$ - $ (585,000)$ 6,565,000 $ 625,000 $ 5,940,000 $ 2007 Refunding Revenue
Bonds, Series A - publicly offered 1,430,000 - (115,000) 1,315,000 120,000 1,195,000 2014 Taxable Lease Revenue
Refunding Bonds - publicly offered 8,880,000 - (65,000) 8,815,000 65,000 8,750,000 Bond discount - 2014 Taxable
Lease Revenue Refunding Bonds (206,057) - 13,884 (192,173) (13,884) (178,289) 2017 Direct Purchase Lease
- Private placement 845,000 - (280,000) 565,000 280,000 285,000 2016 SCE On-Bill Financing Loan
- Direct borrowing 53,749 - (10,388) 43,361 14,296 29,065 2020 Taxable Pension Obligation
Bonds - publicly offered 79,029,723 - (2,336,998) 76,692,725 2,859,800 73,832,925 2021 Lease Revenue Bonds
- Publicly offered - 13,155,000 (275,000) 12,880,000 440,000 12,440,000 Bond premium - 2021 Lease
Revenue Bonds - 2,097,536 (88,879) 2,008,657 106,654 1,902,003 Loan payable 3,545,880 86,223 - 3,632,103 - 3,632,103 Lease payable 381,696 139,312 (183,599) 337,409 182,657 154,752 Claims payable 10,604,474 6,221,285 (22,134) 16,803,625 12,477,264 4,326,361 Compensated absences 7,862,012 3,623,861 (2,727,042) 8,758,831 1,751,766 7,007,065 Total 119,576,477$ 25,323,217$ (6,675,156)$ 138,224,538$ 18,908,553$ 119,315,985$

Typically, the General Fund has been used to liquidate the liability for compensated absences, claims payable, and net other postemployment benefits.

2006 Certificates of Participation, Series A – Original Issuance $12,495,000

In June 2006, the Agency issued the 2006 Refinancing Pr oject, Series A Taxable Certificates of Participation in the amount of $12,495,000. The purpose of the issue was to refinance the City’s 1999 Certificates of Participation in connection with a Memorandum of Understanding (“MOU”) entered into with certain financial institutions.

Pursuant to the MOU, the Agency paid the financial institutions $19 million (the “Initial Amount”) as prepayment of the 1999 Certificates, of which $18 million were funded by the 2006 Series A and B Certificates and the balance of $1 million from other available City funds. Upon payment of the Initial Amount, the 1999 Leases as well as the pledges and security interests granted in connection with the 1999 Leases will be terminated and the City’s obligations under the Reimbursement Agreement for the 1999 Certificates will be terminated. The Initial Payment represents approximately 75% of the principal owed.

Interest rates for the 2006A Certificates range from 5.98% to 6.38% with principal maturing through July 1, 2030.

Mandatory prepayment of the 2006 Series A Certificates occurred in July 2008 and will occur again in July 2030.

The certificates of participation debt service payments will be made from the debt service funds.

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

68 Note 8 – Long-Term Liabilities (Continued)

A. Governmental Activities (Continued)

2006 Certificates of Participation, Series A – Original Issuance $12,495,000 (Continued)

The amount outstanding at June 30, 2022 totaled $6 ,565,000. The annual debt service requirements on these certificates are as follows:

Fiscal Year Principal Interest Total
2023 625,000$ 398,910 $ 1,023,910 $ 2024 665,000 357,759 1,022,759 2025 705,000 314,056 1,019,056 2026 750,000 267,641 1,017,641 2027 800,000 218,195 1,018,195 2028-2031 3,020,000 334,631 3,354,631 Total 6,565,000$ 1,891,192 $ 8,456,192 $

2007 Refunding Revenue Bonds, Series A – Original Issuance $2,800,000

In January 2007, the City issued the South Bay Regional Public Communications Authority Refunding Revenue Bonds, 2007 Series A in the amount of $2,800,000. The purpose of the bonds was to advance refund the South Bay Regional Public Communications Au thority Revenue Bonds, 2001 Series A, to provide a reserve fund for the Bonds, and to pay certain costs of issuance of the Bonds. The 2001 Series A Bonds were fully redeemed as of January 1, 2012.

The bonds accrue interest at rates between 5% and 5.12 5%. Interest on the bonds is payable semiannually on each January 1 and July 1, commencing July 1, 2007. Principal payments are due in annual installments ranging from $70,000 to $175,000, commencing July 1, 2007 through January 1, 2031. The bonds are subject to optional and mandatory redemption prior to maturity. The refunding revenue bonds debt service payments will be made from the debt service funds.

The amount outstanding at June 30, 2022 totaled $1 ,315,000. The annual debt service requirements on these bonds are as follows:

Fiscal Year Principal Interest Total
2023 120,000$ 66,575 $ 186,575 $
2024 125,000 60,575 185,575
2025 130,000 54,325 184,325
2026 135,000 47,825 182,825
2027 145,000 41,075 186,075
2028-2031 660,000 86,357 746,357 Total 1,315,000$ 356,732 $ 1,671,732 $

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
69 Note 8 – Long-Term Liabilities (Continued)
A.

Governmental Activities (Continued)
2014 Taxable Lease Revenue Refunding Bonds – Original Issuance $9,110,000 In December 2014, the City issued the Taxable Leas e Revenue Refunding Bonds, Series 2014 in the amount of $9,110,000 to current refund 2006 Certificate of Partic ipation, Series B. The current refunding resulted in an economic gain in the amount of $
1,637,398 and saving in debt service payments in the amount of $2,360,051.

The current refunding resulted in no deferred gains or losses as the bond proceeds net of the issuance discount was sufficient to cover repayment of 2006 Certificates of Participation, Series B, the interests due, and the issuance cost
on the 2014 Taxable Lease Revenue Refunding Bonds.

The bonds bear interest at rates between 3.95% and 5%. Interest on the bonds is payable annually on each May 1 and November 1. Principal payments are due in annual installments ranging from $55,000 to $1,430,00 0, commencing May 1, 2018
through May 1, 2036. The bonds are subject to optional and mandatory redemption prior to maturity. The refunding revenue bonds debt service payments will be made from the debt service funds.

The amount outstanding at June 30, 2022 totaled $8 ,815,000. The annual debt service requirements on these bonds as follows:

Fiscal Year Principal Interest Total
2023 65,000$ 438,366$ 503,366$
2024 70,000 435,799 505,799
2025 70,000 433,034 503,034
2026 75,000 429,709 504,709
2027 75,000 426,148 501,148
2028-2032 3,390,000 1,945,373 5,335,373
2033-2036 5,070,000 612,750 5,682,750
Total 8,815,000$ 4,721,179$ 13,536,179$
2017 Direct Purchase Lease
In June 2017, the City issued the Direct Purchase Lea se in the amount of $1,635,000 to currently refund 2006 Certificate of Participation, Series C. The economic gain on the current refunding was $112,585 and the saving in debt service payments is $89,363.

The bonds bear interest at 2.07%. Interest on the bonds is payable annually on each July 1. Principal payments are due in annual installments ranging from $245,000 to $285,000, commencing July 1, 2018 through July 1, 2023. The refunding revenue bonds debt service payments will be made from the debt service funds.

In the event of default, the lender may exercise any one or more of the following remedies (a) enforcement of payments without termination, (b) termination of lease, (c) proceeding at law or in equity, or (d) remedies under the lease and facilities lease.

The amount outstanding at June 30, 2022 totaled $565,000. T he annual debt service requirements on these bonds
as follows:

Fiscal Year Principal Interest Total
2023 280,000$ 8,798$ 288,798$
2024 285,000 2,950 287,950
Total 565,000$ 11,748$ 576,748$
City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

70 Note 8 – Long-Term Liabilities (Continued)

A. Governmental Activities (Continued)

2016 SCE On-Bill Financing Loan

On April 4, 2016, the City entered into a loan agreement with Southern California Edison (“SCE”) for the Energy Management Solutions Incentives Application. The agreem ent provides zero- percent interest financing for the installation of certain energy efficient equipment for up to $126,580, of which is to be repaid over ten years through the Customer’s electric utility bills.

SCE may determine the loan to be breached and the City to be in default if the City (1) sells, assigns or otherwise transfers ownership, possession or title of the site or th e equipment, (2) fails to pay the money payment when due, (3) closes, discontinues or otherwise causes the te rmination of the service account(s), or (4) otherwise breaches this agreement, and the breach is not cured as specified therein. Following a breach, SCE shall have the right to declare the entire unpaid balance of the loan obligation due and payable.

The amount outstanding at June 30, 2022 totaled $43,361. The annual debt service requirements on this loan as follows:

Fiscal Year Principal Interest Total
2023 14,296 $ - $ 14,296$ 2024 14,296 - 14,296 2025 7,769 - 7,769 2026 7,000 - 7,000 Total 43,361 $ - $ 43,361$

2020 Taxable Pension Obligation Bonds – Original Issuance $101,490,000 ($79,193,585 for Governmental Activities)

In November 2020, the City issued the Taxable Pe nsion Obligation Bonds, Series 2020 in the amount of $101,490,000. The purpose of the bonds was to finance a portion of the City’s unfunded accrued actuarial liability to the California Public Employees’ Retirement System (CalPERS) for the benefit of the City’s employees and to pay the costs of issuance of the bonds. Of the original $101,490,000 of bond principal issued, $79,193,585 was allocated to governmental activities and $22,296,415 was allocated to business-type activities.

The bonds accrue interest at rates between 1.081% and 3.363%. Interest on the bonds is payable semiannually on each April 1 and October 1, commencing April 1, 2021. Principal payments are due in annual installments ranging from $2,995,000 to $7,525,000, commencing April 1, 2021 through April 1, 2039. The bonds are not subject to optional and mandatory redemption prior to maturity. Th e bond debt service payments will be made from the debt service funds.

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
71 Note 8 – Long-Term Liabilities (Continued)
A.

Governmental Activities (Continued)
2020 Taxabl
e Pension Obligation Bonds – Original Issuance $101,490,000 ($79,193,585 for Governmental Activities) (Continued)
The amount outstandin
g for the governmental activities at June 30, 2022 totaled $76,692,725. The annual debt service requir
ements for the governmental activities on these bonds are as follows:

Fiscal Year Principal Interest Total
2023 2,859,800$ 2,293,263$ 5,153,063$
2024 3,285,063 2,256,000 5,541,063
2025 3,745,440 2,206,659 5,952,099
2026 3,960,023 2,142,911 6,102,934
2027 4,038,053 2,061,097 6,099,150
2028-2032 21,844,499 8,653,120 30,497,619
2033-2037 25,433,879 5,060,959 30,494,838
2038-2039 11,525,968 670,474 12,196,442
Total 76,692,725$ 25,344,483$ 102,037,208$
2021 Lease Revenue Bo
nds – Original Issuance $13,155,000
In September 2021, the Cit
y of Gardena Financing Agency issued the Lease Revenue Bonds, Series 2021 in the amount of $13,155,000. The purpose of the bonds was to fund various capital projects including the Gardena Community Aquatic & Senior Center, the Community Center, and various Park Improvement projects.

The bonds bear interest at rates between 3% and 5%. Interest on the bonds is paya ble annually on each May 1.

Principal payments are due in annual installments ranging from $275,000 to $915,000, commencing May 1, 2022 through May 1, 2041. The bonds are subject to optional and mandatory redemption prior to maturity. The revenue bonds debt service payments will be made from the debt service funds. The unspent project fund is in the amount of $11,447,463 at June 30, 2022.

The amount outstanding at June 30, 2022 totaled $12, 880,000. The annual debt service requirements on these bonds as follows:

Fiscal Year Principal Interest Total
2023 440,000$ 498,000$ 938,000$
2024 465,000 476,000 941,000
2025 490,000 452,750 942,750
2026 510,000 428,250 938,250
2027 540,000 402,750 942,750
2028-2032 3,120,000 1,581,750 4,701,750
2033-2037 3,820,000 882,400 4,702,400
2038-2041 3,495,000 266,100 3,761,100
Total 12,880,000$ 4,988,000$ 17,868,000$
City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

72 Note 8 – Long-Term Liabilities (Continued)

A. Governmental Activities (Continued)

Loans Payable

On August 1, 2013, the City entered into a loan agreemen t with the State of Californ ia Department of Housing and Community Development (“California HCD”) for the funding of the Spring Park Senior Villa. The agreement provides funding for the development of the project for up to $2,974,115, of which, $2,874,115 is to be used for construction costs in the form of a construction loan and $100,000 to be used for activity delivery and administration costs in the form of grants. If the HO ME-assisted rental housing does not meet the minimum affordability period of 55 years per the City’s agreement with the California HCD, the repayment of all HOME funds to the State is required of the City. As of June 30, 2022, the City funded $2,874,115 for the development of the project and accrued interest in the amount of $757, 988. This results in the loans payable in the amount of $3,632,103 to the California HCD. Please refer to Note 5B for additional information.

Lease Payable

The City has entered leases for the building, vehicle, and machine uses. The terms of the agreements range from 18 months to 60 months. The calculated interest rates u sed were between 0.185% to 1.705% based on the term of the agreements.

Principal and interest payments to maturity at June 30, 2022 are as follows:

Fiscal Year Principal Interest Total
2023 182,657$ 950 $ 681,607$ 2024 87,834 501 564,335 2025 47,826 207 500,783 2026 19,092 33 447,375 Total 337,409$ 1,691 $ 2,194,100$

Legal Debt Margin

The City is subject to legal debt margin and the City ’s legal debt limit was in the amount of $281,569,079 at June 30, 2022.

Compensated Absences

The long-term portion of compensated absences payable has been accrued for the G overnmental 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, 2022 was $8,758,831.

B. Business-Type Activities

The following is a summary of changes in long-term liabilities for business-type activities for the year ended June 30, 2022:

Balance Balance Due within Due in more
July 1, 2021 Additions Deletions June 30, 2022 One Year One Year 2020 Taxable Pension Obligation
Bonds - publicly offered 22,250,277 $ - $ (658,002)$ 21,592,275 $ 805,201 $ 20,787,074 $ Lease payable 304,112 - (145,189) 158,923 158,923 - Compensated absences 1,599,276 1,063,036 (704,888) 1,957,424 391,485 1,565,939 Total 24,153,665$ 1,063,036 $ (1,508,079) $ 23,708,622 $ 1,355,609 $ 22,353,013 $ City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

73 Note 8 – Long-Term Liabilities (Continued)

B. Business-Type Activities (Continued)

2020 Taxable Pension Obligation Bonds – Original Issuance $101,490,000 ($22,296,415 for Business-Type Activities)

In November 2020, the City issued the Taxable Pe nsion Obligation Bonds, Series 2020 in the amount of $101,490,000. The purpose of the bonds was to finance a portion of the City’s unfunded accrued actuarial liability to the California Public Employees’ Retirement System (CalPERS) for the benefit of the City’s employees and to pay the costs of issuance of the bonds. Of the original $101,490,000 of bond principal issued, $79,193,585 was allocated to governmental activities and $22,296,415 was allocated to business-type activities.

The bonds accrue interest at rates between 1.081% and 3.363%. Interest on the bonds is payable semiannually on each April 1 and October 1, commencing April 1, 2021. Principal payments are due in annual installments ranging from $2,995,000 to $7,525,000, commencing April 1, 2021 through April 1, 2039. The bonds are not subject to optional and mandatory redemption prior to maturity. Th e bond debt service payments will be made from the debt service funds.

The amount outstanding for the business-type activities at June 30, 2022 totaled $21, 592,275. The annual debt service requirements for the business-type activities on these bonds are as follows:

Fiscal Year Principal Interest Total
2023 805,201$ 645,688$ 1,450,889$
2024 924,937 635,196 1,560,133
2025 1,054,560 621,303 1,675,863
2026 1,114,978 603,355 1,718,333
2027 1,136,948 580,319 1,717,267
2028-2032 6,150,502 2,436,358 8,586,860 2033-2037 7,161,122 1,424,956 8,586,078 2038-2039 3,244,027 188,776 3,432,803 Total 21,592,275$ 7,135,951$ 28,728,226$

Lease Payable

The City’s business-activities have entered leases for the machine uses. The terms of the agreements range from 18 months to 60 months. The calculated interest rates u sed were between 0.185% to 1.705% based on the term of the agreements.

Principal and interest payments to maturity at June 30, 2022 are as follows:

Fiscal Year Principal Interest Total
2023 158,923$ 188$ 159,111$

Compensated Absences

All vested vacation and compensatory leave time is recognized as an expense and as a liability in the business- type funds at the time the liability vests. GTrans and the Sewer Enterprise funds have been used to liquidate the liability. The balance outstanding at June 30, 2022 was $1,957,424.

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

74 Note 9 – Self-Insurance Programs

A. Self-Insurance Programs of the City

The City is self-insured for the first $750,000 of each workers’ compensation claim for both the GTrans and the City, $750,000 each general liability claim and $250,000 of each GTrans claim against the City. In addition, the City carries insurance of individual general liability claims in excess of $750,000 to $45,000,000 w ith Public Risk Innovation Solutions Management (“PRISM”). Additionally, the City has health insurance coverage for the employees and their families with an annual maximum amount of $1 million for all services.

The City carries stop-loss insurance of individual health benefit claims in excess of $75,000 for Medicare retirees and $50,000 for all other members. At June 30, 2022, $16,803,625 has been accrued for the City’s self-insurance programs, of which $12,477,264 is considered to be current. Said accruals represent estimates of amounts to be paid for reported claims and incurred but unreported cl aims based upon past experience, modified for current trends and information. While the ultimate amounts of losses incurred through June 30, 2022 are dependent on future developments, based upon in formation provided from the City Attorney, outside counsel and others involved with the administration of the programs, City management believes that the aggregate accrual is adequate to cover such losses. For th e prior three (3) fiscal years, no settle ments exceeded the City’s insurance coverage.

Changes in the reported liability since June 30, 2022 resulted from the following:

Expenses and
Beginning Changes in Claims Ending Due within Due in more Balance Estimates Payments Balance One Year than One Year 2019-2020 12,238,048$ 368,419 $ (3,193,864)$ 9,412,603 $ 7,454,180 $ 1,958,423 $ 2020-2021 9,412,603 1,243,589 (51,718) 10,604,474 8,389,641 2,214,833 2021-2022 10,604,474 6,221,285 (22,134) 16,803,625 12,477,264 4,326,361 Claims Payable

B. Purchased Insurance

Property Insurance - Several insurance companies underwrite this insurance protection. The City is currently insured according to a schedule of covered property submitte d by the City to Alliant Property Insurance Company. Total all-risk property insurance coverage is $105.6 million. There is a $10,000 per loss deductible.

Crime Insurance - The City purchases crime insurance coverage with a limit of $2 million per occurrence. This policy provides coverage for all City employees. There is a $2,500 per loss deductible.

C. Adequacy of Protection

During the past three fiscal years none of the above programs of protecti on have had settlements or judgments that exceeded pooled or insured coverage. There have been no significant reductions in insured liability coverage from coverage in the prior year.

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
75 Note 10 – Retirement Plans
A.

California Public Employees’ Retirement System (“CalPERS”) The following is the summary of net pension liability and related deferred outflows of resources and deferred inflows of resources at June 30, 2022 and pension expense for the year then ended.

Governmental Business-Type
Activities Activities Total
Deferred outflows of resources:

Pension contribution made after measurement date:

Miscellaneous 1,065,810$ 1,034,893$ 2,100,703$
Safety 2,950,604
- 2,950,604
T
otal pension contribution made after measurement date 4,016,414 1,034,893 5,051,307 Differences between expected and actual experience
Miscellaneous 266,196 258,474 524,670
Safety 3,236,902
- 3,236,902
T
otal differences between expected and actual experience 3,503,098 258,474 3,761,572 Adjustment due to differences in proportions:

Safety 140,156
- 140,156
Difference between City's contribution and proportionate share of contributions:

Safety 35,300,895
- 35,300,895
Total deferred outflows of resources 42,960,563$ 1,293,367$ 44,253,930$ Aggregate net pension liabilities (assets):

Miscellaneous (11,032,054)$ (10,712,038)$ (21,744,092)$ Safety (27,495,287)
- (27,495,287)
Total aggregate net pension liab ilities (38,527,341)$ (10,712,038) $ (49,239,379) $ Deferred inflows of resources:

Differences between expected and actual experience:

Miscellaneous 797,814 774,673 1,572,487
Difference in projected and actual earnings on pension investments:

Miscellaneous 9,073,348 8,810,147 17,883,495
Safety 11,276,486
- 11,276,486

Total difference in projected and actual earnings on pension investments 20,349,834 8,810,147 29,159,981 Difference between City's contribution and proportionate share of contributions:

Safety 952,892
- 952,892
Adjustment due to differences in proportions:

Safety 35,619,134
- 35,619,134
Total deferred inflows of resources 57,719,674$ 9,584,820$ 67,304,494$ Pension Expense (credit):

Miscellaneous (664,502)$ (622,496)$ (1,286,998)$ Safety (14,853,830)
- (14,853,830)
Total pension expense (15,518,332)$ (622,496) $ (16,140,828)$ City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

76 Note 10 – Retirement Plans (Continued)

A. California Public Employees’ Retirement System (“CalPERS”) (Continued)

General Information about the Pension Plan

Plan Description

The City contribution to the California Public Employ ees Retirement System (“CalPERS”), an agent multiple- employer defined benefit pe nsion plan for miscellaneous employ ees and a cost-sharing multiple-employer defined benefit plan for safety empl oyees. CalPERS acts as a common investment and administrative agent for participating public entities within the State of Califo rnia. Benefit provisions and all other requirements are established by state statue and City ordinance. A full description of the pension plan regarding number of employees covered, benefit provisions, assumptions (for funding, but not accounting purposes), and membership information are listed in the June 30, 2020 Annual Actuarial Valuation Report. This report and CalPERS’ audited financial statements are publicly available reports that can be obtained at CalPERS’ website under Forms and Publications.

Benefit Provided

CalPERS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. A classic CalPERS me mber or PEPRA Safety member becomes eligible for service retirement upon attainment of age 50 with at l east 5 years of credited service. PEPRA miscellaneous members become eligible for service re tirement upon attainment of age 52 with at least 5 years of service. The service retirement benefit is a monthly allowance equal to the product of the benefit factor, years of service, and final compensation.

The final compensation is the monthly average of the member’s highest 36 or 12 consecutive months’ full-time equivalent monthly pay. Retirement benefits for classic miscellaneous employees are calculated as 2% of average final 12 months compensation. Retirement benefit for PEPRA miscellaneous employees are calculated as 2% of the average final 36 months compensation. Retirement benefits for classic safety employees are calculated as 3% of the average final 12 months compensation. Retirement benefits for PEPRA safety employees are calculated as

2.7% of average final 36 months.

Participant is eligible for non-industrial disability retirement if the participant becomes disabled and has at least 5 years credited service. There is no special age requir ement. The standard non-industrial disability retirement benefit is a monthly allowance equal to 1.8 percent of final compensation, multiplied by service.

Industrial disability benefits are not offered to misce llaneous employees. The City provides industrial disability retirement benefit to safety employees. The industrial disability retirement benefit is a monthly allowance equal to 50 percent of final compensation.

An employee's beneficiary may receive the basic death benefit if the employee becomes deceased while actively employed. The employee must be actively employed with the City to be eligible for this benefit. An employee's survivor who is eligible for any other pre-retirement death benefit may choose to receive that death benefit instead of this basic death benefit. The basic death benefit is a lump sum in the amount of the employee's accumulated contributions, where interest is currently credited at 7.5 percent per year, plus a lump sum in the amount of one month's salary for each completed year of current servi ce, up to a maximum of six months' salary. For purposes of this benefit, one month's salary is defined as the member's average monthly full-time rate of compensation during the 12 months preceding death. Upon the death of a retiree, a one-time lump sum payment of $500 will be made to the retiree’s designated survivor(s), or to the retiree’s estate.

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
77 Note 10 – Retirement Plans (Continued)
A.

California Public Employees’ Retirement System (“CalPERS”) (Continued) General Information about the Pension Plan (Cont
inued)
Benefit Provided (Continued)
Benefit terms provide for annual cost-of-living adjust
ments to each employee’s retirement allowance. Beginning the second calendar year after the year of retirement, retirement and survivor allowances will be annually adjusted on a compou
nd basis by 2 percent.

Employees C
overed by Benefit Terms
At June 30, 2020, t
he valuation date, the following employees were covered by the benefit terms:

Miscellaneous
Classic PEPRA
Active employees 331 68 17
Transferred and terminated employees 360 48 7
Retired Employees and Beneficiaries 410 241 0
Total 1,101 357 24
Plans
SafetyContributio
ns
Section 20814(c) of the California Public Employees’ Retirement Law (“PERL”) requires that the employer
contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a ch ange in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees duri ng the year, with an additional amount to finance any unfunded accrued liability. Th e employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. The required contribution rates are as follow:

Classic PEPRA Classic PEPRA
Employer Contribution Rate 9.362% 9.362% 25.540% 13.884% Employee Contribution Rate 7.000% 6.750% 9.000% 12.750% Classic PEPRA Classic PEPRA
Employer Contribution Rate 9.250% 9.250% 25.590% 13.980% Employee Contribution Rate 7.000% 6.750% 9.000% 13.750% Miscellaneous Safety
Measurement Period June 30, 2021
Plans
Miscellaneous Safety
Current Fiscal Year Ended June 30, 2022
Plans
City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

78 Note 10 – Retirement Plans (Continued)

A. California Public Employees’ Retirement System (“CalPERS”) (Continued)

Net Pension Liability

Actuarial Methods and Assumption Used to Determine Total Pension Liability

The June 30, 2020 valuation was rolled forward to determine the June 30, 2021 total pension liability, based on following actuarial methods and assumptions:

Actuarial Cost M ethod
Actuarial Assumptions:

Discount Rate
Inflation
Salary Increases
Investment Rate of Return
Morta l i ty Ra te Ta bl e
1 Post Retirement Benefit Increase
Entry Age Normal

7.15%

2.500%
Varies by Entry Age and Service

7.25% includes inflation
Derived using CalPERS’ Membership Data for all Funds.

Contract COLA up to 2.00% until Purchasing Power Protection Allowance Floor on Purchasing Power applies, 2.50% thereafter 1 The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries.

For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from December 2017 that can be found on the CalPERS website.

Change of Assumptions

There were no changes of assumptions.

Long-term Expected Rate of Return

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

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

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
79 Note 10 – Retirement Plans (Continued)
A.

California Public Employees’ Retirement System (“CalPERS”) (Continued) Net Pension Liability (Continued)
Long-term Expected Rate of Return (Con
tinued)
The expected real rates of return by asset class are as followed:

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

Discount Rate
The discount
rate used to measure the total pension liability was 7.15%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers w ill 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 proj ected benefit payments to determine the total pension liability.

Subsequent Events
On July
12, 2021, CalPERS reported a preliminary 21.3% net return on i nvestments for fiscal year 2020-21.

Based on the thresholds specified in CalPERS Fundi ng Risk Mitigation policy, the excess return of 14.3% prescribes a reduction in investment volatility that corresponds to a reduction in the discount rate used for funding purposes of 0.20%, from 7.00% to 6.80%. Since CalPERS was in the final stages of the four-year Asset Liability Management (ALM) cycle, the board elected to defer any changes to the asset allocation until the ALM process concluded, and the board could make its final decision on the asset allocation in November 2021.

On November 17, 2021, the board adopted a new strategic asset allocation. The new asset allocation along with the new capital market assumptions, economic assumptions and administrative expense assumption support a discount rate of 6.90% (net of investment expense but without a reduction for administrative expense) for financial reporting purposes. This includes a reduction in the price inflation assumption from 2.50% to 2.30% as recommended in the November 2021 CalPERS Experience Study and Review of Actuarial Assumptions. This study also recommended modifications to retirement rates, termination rates, mortality rates and rates of salary increases that were adopted by the board. These new assumptions will be reflected in the GASB 68 accounting valuation reports for the June 30, 2022, measurement date.

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

80 Note 10 – Retirement Plans (Continued)

A. California Public Employees’ Retirement System (“CalPERS”) (Continued)

Changes in the Net Pension Liability

The following table shows the changes in net pension liability for the City’s Miscellaneous Plan recognized over the measurement period.

Total Pension Plan Fiduciary Net Net Pension
L iability Position L iability
(a) (b) (c) = (a) - (b)
Balance at June 30, 2020 (Valuation Date) 179,761,019 $ 132,225,158 $ 47,535,861 $ Changes recognized for the measurement period:

Service Cost 3,190,091 - 3,190,091 Interest on the total pension liability 12,451,995 - 12,451,995 Changes of benefit terms - - - Difference between expected and actual experience (1,841,509) - (1,841,509) Changes of assumptions - - - Plan to plan resource movement - - - Contributions from the employer - 46,940,155 (46,940,155) Contributions from employees - 1,203,298 (1,203,298) Net investment income - 35,069,162 (35,069,162) Benefit payments, including refunds of employee
contributions (10,721,565) (10,721,565) - Administrative expense - (132,085) 132,085 Other miscellaneous income/(expense) - - - Net changes during July 1, 2020 to June 30, 2021 3,079,012 72,358,965 (69,279,953) Balance at June 30, 2021 (Measurement Date) 182,840,031$ 204,584,123 $ (21,744,092) $ Increase (Decrease)
Miscellaneous Plan

Proportionate Share of Net Pension Liability and Pension Expense

The following table shows the City’s safety plan’s pr oportionate share of the risk pool collective net pension liability over the measure period.

Total Pension Plan Fiduciary Net Net Pension
L iability Position L iability (asset)
(a) (b) (c) = (a) - (b)
Balance at June 30, 2020 (Valuation Date) 219,815,760 $ 158,371,837 $ 61,443,923 $ Balance at June 30, 2021 (Measurement Date) 229,573,818 257,069,105 (27,495,287) Net Changes during 2020-2021 9,758,058 98,697,268 (88,939,210) Safety Plan
Increase (Decrease)

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
81 Note 10 – Retirement Plans (Continued)
A.

California Public Employees’ Retirement System (“CalPERS”) (Continued) Changes in the Net Pensi
on Liability (Continued)
Proportionate Share of Net Pension Liability and Pension Expense (Continued) The following is the approach established by the plan actuary to allocate the net pension liability and pe nsion expense to th
e individual employers within the risk pool.
(1)
In determining a cost-sharing plan ’s proportionate share, total amounts of liabilities and assets are first calculated for the risk p
ool as a whole on the valuat ion date (June 30, 2020). 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 ris k pool TPL is then computed at the measurement date (June 30, 2021). 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 purpo ses of FNP in this step and any later reference thereto, the risk pool’s F
NP at the measurement date denotes the aggregate risk pool’s FNP at June 30, 2021 less the sum of all additional side fund (or unfunded liability) contributions made by all employers during the measurement period (2020-2021). (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 market value assets.
(4) Two ratios are created by dividing the plan’s individual TPL and FNP as of the valuation dat e 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 Measuremen t 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 re sources, and pension expense are allocated based on the City’s share of net pension liability at the end of measurement date.

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

Safety Plan
June 30, 2020 0.564720%
June 30, 2021 -0.508390%
Change - Increase (Decrease) -1.073110%
City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

82 Note 10 – Retirement Plans (Continued)

A. California Public Employees’ Retirement System (“CalPERS”) (Continued)

Changes in the Net Pension Liability (Continued)

Sensitivity of the Net Pension Liability to Changes in the Discount Rate

The following presents the net pension liability of the plans as of the measu rement date, calculated using the discount rate of 7.15%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (6.15%) or 1 percentage-point higher (8.15%) than the current rate:

Discount Rate - 1% Current Discount Discount Rate + 1%
(6.15%) Rate (7.15%) (8.15%)
Miscellaneous Plan 1,625,294$ (21,744,092) $ (41,050,863) $ Safety Plan (55,136,714) $ (27,495,287) $ (4,791,269) $ Plan's Net Pension L iability (asset)

Pension Plan Fiduciary Net Position

Detailed information about the plan’s fiduciary net position is available in the separately issued CalPERS financial report.

Pension Expense (Credit) and Deferred Outflows and Deferred Inflows of Resources Related to Pensions

For the year ended June 30, 2022, the City recognized pension credit in the amounts of $1,286,998 and $14,853,830 for the miscellaneous plan and safety plan, respectively.

As of measurement date of June 30, 2021, the City has deferred outflows and deferred inflows of resources related to pensions as follows:

Deferred outflows Deferred inflows
of Resources of Resources
Pension contribution made after measurement date 2,100,703$ - $ Changes of assumptions - - Difference between expected and actual experience 524,670 (1,572,487) Net difference between projected and actual earning on
pension plan investments - (17,883,495) Total 2,625,373 $ (19,455,982) $
Miscellaneous Plan

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
83 Note 10 – Retirement Plans (Continued)
A.

California Public Employees’ Retirement System (“CalPERS”) (Continued) Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions (Continued)
Deferred outflows Deferred inflows
of Resources of Resources
Pension contribution made after measurement date 2,950,604$ -$ Changes of assumptions - -
Difference between expected and actual experience 3,236,902 - Difference between projected and actual earnings on
pension plan investments - (11,276,486)
Adjustment due to differences in proportions 140,156 (35,619,134) Difference between City contributions and
proportionate share of contributions 35,300,895 (952,892) Total 41,628,557$ (47,848,512)$
Safety Plan
The amounts above are net of outfl
ows and inflows recognized in the 2020-21 measurement period expense.

The expected average remaining service lifetime (“EARSL” ) is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired). The EARSL for the miscellaneous plan and the safety risk pool for the 2020-21 measurement period is 3.4 and 3.7 years, which was obtained by dividing the total service years of 3,777 and 561,622 (the sum of remaining service lifetimes of the active employees) by 1,101 and 150,648 (the total number of participants: active, inactive, and retired), respectively. $2,100,703 and $2,950,604 reported as deferred outflows of resources related to pensions for miscellaneous plan and safety plan, respectively, resulting from the City’s contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability and collectively net pension liability, respectively, in the year ending June 30, 2022.

Other amounts reported as deferred out flows and deferred inflows of res ources related to pensions will be recognized in the future pension expense as follows:

Deferred Outflows/ Deferred Outflows/
(Inflows) of Resources (Inflows) of Resources
Ended June 30 Miscellaneous Plan Safety Plan
2023 (4,694,372)$ (1,682,593)$
2024 (4,840,581) (2,036,505)
2025 (4,536,984) (2,348,328)
2026 (4,859,375) (3,103,133)
2027 - -
Thereafter - -
(18,931,312)$ (9,170,559)$
City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

84 Note 10 – Retirement Plans (Continued)

B. Public Agency Retirement System (“PARS”)

Defined Contribution Pension Plan

For all of its part-time employees who are not eligible for coverage under the CalPERS pension plan, the City provides pension benefits through a de fined contribution plan. In a define d contribution plan, benefits depend solely on amounts contributed to the plan plus investment earnings. The plan is administered as part of the Public Agency Retirement Systems (“PARS”). The PARS Trust Agreement may be amended by a two-thirds majority or greater of the Member Agencies. The plan conforms to the requirements under Internal Revenue Code 401(a) and has received a favorable Letter of Determination from the Internal Revenue Service.

All part-time employees are eligible to participate from the date of employment. Fe deral legislation requires contributions of at least 7.5 percent to a retirement plan, and City Council resolved to match the employees’ contributions up to 3.75 percent. The City’s contributions for each employee (and interest earned by the accounts) are fully vested immediately. For the year ended June 30, 2021 the City’s payroll covered by the plan was $165,499. The City made employer contributions in the amount of $6,207. There were 52 participants of the Plan as of June 30, 2021.

The assets of the defined contribution pension plan are t hose of the part-time employees and are not included in the accompanying financial statements.

Note 11 – Other Postemployment Benefits (“OPEB”)

At June 30, 2022, total OPEB liability and related deferred outflows of res ources and deferred inflows of resources are as follows:

Governmental Business-Type
Activities Activities Total
Deferred outflows of resources:

OPEB contribution made after measurement date 2,286,676$ 873,696 $ 3,160,372 $ Change in assumptions 9,846,949 159,231 10,006,180 Differences between expected and actual experience 947,259 165,808 1,113,067 Total deferred outflows of resources 13,080,884$ 1,198,735 $ 14,279,619 $ Total other postemployment benefit liabilities 76,280,979$ 6,448,522 $ 82,729,501 $ Deferred inflows of resources:

Change in assumptions 3,413,334 $ 208,170 $ 3,621,504 $ Differences between expected and actual experience 1,506,692 222,198 1,728,890 Differences in projected and actual earnings 24,347 667,246 691,593 Total deferred inflows of resources 4,944,373$ 1,097,614 $ 6,041,987 $ OPE B expense 4,283,421$ 654,324 $ 4,937,745 $

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
85 Note 11 – Other Postemployment Benefits (“OPEB”) (Continued) General Information about the OPEB Plan
Plan Description
The City provides retiree
healthcare benefits for employ ees who retire simultaneously from CalPERS and the City and who meet the qualifying criteria negotiated by the various City labor groups. The OPEB plan is a single employer plan with a trust, but without special funding situation, or non-employer contribution entities. The City offers insurance coverage from Kaiser Permanente and a self-insured PPO.

Miscellaneous employees hired prior to July 1, 2002 must be 55 years of age and have at least 13 years of full-time service with the City. Effective July 1, 2002, miscellaneous (non-management) employees must have at least 20 years of full-time service to qualify. Safety employees must be 50 years of age and have 25 years of full-time service in the police or fire department of the City. In October 2000 , City fire services transferred to contracted services with the Los Angeles County Fire District. Postemployment benefits continue only for fire personnel retiring from service prior to that date.

The City’s health plan year runs February through January with open-enrollment every January prior to the start of the new plan year. The monthly benefits to be paid by the City are $1,329 and $1,167 per month for the calendar years 2022 and 2021, respectively.

Eligibility
All of the Plan’s e
mployees became participants in accordance with a negotiated Memorandum of Understanding (“MOU”) as negotiated by each group or bargaining unit. In order to receive benefits, eligible employees must meet the minimum requirements defined in their MOU. At June 30, 2021 measurement date, the following numbers of participants were covered by the benefit terms:

Governmental
Activities GTrans Sewer
Inactives currently receiving benefits 191 43 -
Inactives entitled to benefit payments - - -
Active employees 201 115 5
Total 392 158 5
Plans
Contributio
ns
Governmental
Activities Gtrans Total
Benefit payments 2,286,676 $ 873,696$ 3,160,372$
Trust contributions - - -
Total 2,286,676$ 873,696$ 3,160,372$
Fiscal Year Ended June 30, 2022
City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

86 Note 11 – Other Postemployment Benefits (“OPEB”) (Continued)

Net OPEB Liability

The OPEB liability was measured as of June 30, 2021, and total liability used to calculate the net OPEB liability was determined by an actuarial valuation as of June 30, 2020.

Significant Actuarial Assumptions Used for Total OPEB Liability

The total OPEB liability, measured as of June 30, 2021, was determined using the following actuarial assumptions:

Actuarial Cost Method
Actuarial Assumptions:

Actuarial Valuation Date June 30, 2020
Contribution Policy
Discount Rate and Long-Term Expected Rate of
Return on Assets
Inflation
Mortality, Retirement, Disability, Termination
Mortality Improvement
Salary Increases
Me di c a l Tre nd
M edical Plan at Retirement
Healthcare Participation for Future Retirees
CalPERS 1997-2015 Experience Study
Entry Age Normal
City began making contributions to CERBT#1 in 2018/19 on an ad-hoc basis
Governmental activities and Sewer: 2.16% at June 30, 2021 GTrans: 6.25% at June 30, 2021
Expected Agency contributions projected to keep sufficient plan assets to pay all benefits from trust.

2.50%
Post-retirement mortality projected fully generational with Scale MP-2020
Aggregate - 2.75%
Merit - CalPERS 1997-2015 Experience Study
Non-Medicare - 6.75% for 2022, decreasing to an ultimate rate of

3.75% in 2076.

Medicare - 5.85% for 2022, decreasing to an ultimate rate of 4.0% in 2076.

Current actives pre-Medicare: 40% Kaiser, 60% City plan Current actives post-Medicare: 25% Kaiser, 75% City plan Current retirees: current election
Currently covered: retiree - 100%, spouse - 50-100% based on the City Contribution.

Currently waived: 10%

Total OPEB Liability

Change in Assumptions

Discount rate changed from 2.21% at June 30, 2020 to 2.16% at June 30, 2021 for governmental activities and Sewer Enterprise’s plans. Medical plan assumption, trend rate assumption, demographic assumption and mortality improvement scale were updated.

Discount Rate

The discount rate used to measure the total OPEB liability for the governmental activities and Sewer Enterprise was

2.16%. This discount rate is the mid-point, rounded to five basis points, of the range of 3-20 year municipal bond rate indices; S&P Municipal bond 20 Year High Grade Rate Index, Bond Buyer 20-Bond GO Index, and Fidelity GO AA 20 Year Bond Index.

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
87 Note 11 – Other Postemployment Benefits (“OPEB”) (Continued) Total OPEB Liability (Continued)
Discount Rat
e (Continued)
The discount
rate used to measure the total OPEB liability for GTrans was 6.25% percent. The fiduciary net position is projected to be sufficient to make projected benefit payments, and the plan assets are expected to be invested using the strategy to achieve the expected return. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

Expected Long-Term Rates of Return
Asset Class Component
Targ et Allocation1
CERBT Strategy
Expected Real
Rate of Return
Global Equity 59.00% 4.56%
Fixed Income 25.00% 0.78%
TIPS 5.00% -0.08%
Commodities 3.00% 1.22%
REITs 8.00% 4.06%
100.00%
Assumed Long-Term Rate of Inflation 2.50%
Expected Long-Term Net Rate of Return, Rounded 6.25%
1 Policy target effective October 1, 2018.

The long-ter
m expected rates of return are presented as geometric means.

Change in Net OPEB Liability
The following presents the changes in the net OPEB liability for t he governmental activities’ Retiree Health Plan:

Total OPEB Fiduciary Net OPEB
L iability Net Position L iability
(a) (b) (c)
= (a) - (b)
Balance at June 30, 2020 73,949,668$ 157,078$ 73,792,590$ Changes recognized for the measurement period:

Service Cost 2,450,797 - 2,450,797
Interest on the total pension liability 1,663,721 - 1,663,721 Differences between expected and actual experience - - - Changes in assumptions 654,965 - 654,965
Cont
ributions - employer - 2,237,985 (2,237,985)
Net investment income - 43,168
(43,168)
Benefits payments (2,237,985) (2,237,985) -
Administrative expenses - (59) 59
Net changes during July 1, 2020 to June 30, 2021 2,531,498 43,109 2,488,389 Balance at June 30, 2021 (Measurement Date) 76,481,166$ 200,187$ 76,280,979$ Increase (Decrease)
City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

88 Note 11 – Other Postemployment Benefits (“OPEB”) (Continued)

Change in Net OPEB Liability (Continued)

The following presents the changes in the net OPEB liability for the GTrans Enterprise’s retiree OPEB Plan:

Total Pension Plan Fiduciary Net Net OPE B
L iability Position L iability
(a) (b) (c) = (a) - (b)
Balance at June 30, 2020 10,865,356 $ 4,482,902 $ 6,382,454 $ Changes recognized for the measurement period:

Service cost 340,578 - 340,578 Interest on the total OPEB liability 691,860 - 691,860 Differences between expected and actual experience - - - Changes in assumptions - - - Contributions - employer - 272,358 (272,358) Net investment income - 1,231,806 (1,231,806) Benefit payments (272,358) (272,358) - Administrative expenses - (1,696) 1,696 Net changes during July 1, 2020 to June 30, 2021 760,080 1,230,110 (470,030) Balance at June 30, 2021 (Measurement Date) 11,625,436 $ 5,713,012 $ 5,912,424 $ Increase (Decrease)

The following presents the changes in the net OPEB liability for the Sewer Enterprise Fund (nonmajor):

Total Pension Plan Fiduciary Net Net OPE B
L iability Position L iability
(a) (b) (c) = (a) - (b)
Balance at June 30, 2020 445,792 $ - $ 445,792$ Changes recognized for the measurement period:

Service Cost 73,740 - 73,740 Interest on the total OPEB liability 11,482 - 11,482 Differences between expected and actual experience - - - Changes in assumptions 5,084 - 5,084 Contributions - employer - - - Net investment income - - - Benefit payments - - - Administrative expenses - - - Net changes during July 1, 2020 to June 30, 2021 90,306 - 90,306 Balance at June 30, 2021 (Measurement Date) 536,098 $ - $ 536,098$ Increase (Decrease)

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
89 Note 11 – Other Postemployment Benefits (“OPEB”) (Continued) Change in Net OPEB Liability (Continued)
Sensitivity of the net OPEB Liability to Changes in the Discount Rate The following presents the net OPEB liability of the
governmental activities and the Sewer’s Retiree Health Plans, as well as what the governmental activities and the Sewer En terprise’s total OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (1.16 percent) or 1-percentage- point higher (3.16 percent) than the current discount rate:

Discount Rate - 1% Current Discount Discount Rate + 1%
(1.16%) Rate (2.16%) (3.16%)
Gove rnme ntal Acti vi ti e s 91,345,230$ 76,280,979$ 64,622,898$ Sew er 653,582$ 536,098$ 446,035$
Plan's Net OPE B L iability
The following presents the net OPEB liability of the GTra ns Enterprise Retiree Health Plan, as well as what the GTrans Enterprise Retiree
Health Plan’s total OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (5.25 percent) or 1-percentage- point higher (7.25 percent) than the current discount rate:

Discount Rate - 1% Current Discount Discount Rate + 1%
(5.25%) Rate (6.25%) (7.25%)
7,527,781$ 5,912,424$ 4,583,124$
Plan's Net OPE B L iability
Sensitivity of the Net OPEB Liability to
Changes in the Health Care Cost Trend Rates
The following presents the total OPEB l
iability of the City, GTrans, and Sewer, as well as what the City’s, GTrans’, and Sewer’s total OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage- point lower or 1-percentage-point higher than the current healthcare cost trend rates:
1% Decrease Current Trend 1% Increase
Gove rnme ntal Acti vi ti e s 63,070,582$ 76,280,979$ 93,812,264$ GTrans 4,313,035$ 5,912,424$ 7,906,799$
Sew er 422,679$ 536,098$ 694,311$
Plan's Net OPE B L iability
City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

90 Note 11 – Other Postemployment Benefits (“OPEB”) (Continued)

OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB

For the measurement period ended June 30, 2021, the governmental activities recognized expense of $1,996,745. At June 30, 2022, the City reported de ferred outflows of resources and deferre d inflows of resources related to governmental activities OPEB from the following sources:

Deferred outflows Deferred inflows
of resources of resources
Difference between expected and actual experience 947,259$ (1,506,692)$ Changes in assumptions 9,846,949 (3,413,334) Net difference between projected and actual earnings
on plan investments - (24,347) Employer contributions made subsequent to
the measurement date 2,286,676 -
Total 13,080,884 $ (4,944,373) $

For the measurement period ended June 30, 2021, GTrans recognized expense of $305,253. At June 30, 2022, the City reported deferred outflows of r esources and deferred inflows of resour ces related to GTrans OPEB from the following sources:

Deferred outflows Deferred inflows
of resources of resources
Difference between expected and actual experience 152,453$ (221,753) $ Changes in assumptions 88,307 (181,010) Net difference between projected and actual earnings
on plan investments - (667,246) Employer contributions made subsequent to
the measurement date 873,696 -
Total 1,114,456 $ (1,070,009) $

For the measurement period ended June 30, 2021, Sewer recognized expense of $85,881. At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to Sewer OPEB from the following sources:

Deferred outflows Deferred inflows
of resources of resources
Difference between expected and actual experience 13,355$ (445) $ Changes in assumptions 70,924 (27,160) Net difference between projected and actual earnings
on plan investments - -
Employer contributions made subsequent to
the measurement date - -
Total 84,279 $ (27,605) $

The difference between projected OPEB plan investment ear nings and actual earnings is amortized over a five-year period. The remaining gains and losses are amortized over the expected average remaining service life. The expected average remaining service life is 7.0 years, 8.2 years, and 13.3 years for the governmental activities, the GTrans, and the Sewer, respectively, which was determined as of July 1, 2020, the beginning of the measurement period, for employees covered by the OPEB plan benefit terms.

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
91 Note 11 – Other Postemployment Benefits (“OPEB”) (Continued) OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB (Continued)
$2,286,676 and $873,696 reported as
deferred outflows of resources related to OPEB under the governmental activities and GTrans, respectively resulting from the City’s contributions subsequent to the measurement date will be recognized as a reduction of the net OPEB liability in the year ending June 30, 202 2. Other amount reported as deferred inflows of resources related to OPEB will be recognized in the future OPEB expense as follows:

Deferred Outflows/ Deferred Outflows/ Deferred Outflows/ (Inflows) of Resources (Inflows) of Resources (Inflows) of Resources Ended June 30 Gove rnme ntal Acti vi ti e s GTrans S e we r 2023 178,659$ (185,564)$ 659$
2024 1,177,661 (186,564) 3,659
2025 1,458,509 (191,307) 5,659
2026 1,706,408 (219,175) 5,659
2027 1,235,029 (22,573) 5,659
Thereafter 93,569 (24,066) 35,379
5,849,835$ (829,249)$ 56,674$
Note 12 – Deferr
ed Compensation Plan
The City offers its employees a deferred compensation pl an created in accordance with Internal Revenue Code Section 457. The plan, available to all City employees, permits them to defer a portion of their salaries until future years. The deferred compensation is not available to employees until termination, retirement, death or unforeseeable emergency. The plan assets are under the participants contro l and are principally invested in demand deposits and mutual funds and are held in trust for the exclusive benefit of the participants and their beneficiaries. The plan assets are not included in the accompanying financial statements. At June 30, 2022, the amount held by the Trustee for the City employees is $26,776,711.

Note 13 – Net Position and Fund Balances
A. Government-Wide Financial Statements
Net Invest
ment in Capital Assets
The following is the calculation of net investment in c apital assets at June 30, 2022:

Governmental Business-Type
Activities Activities Total
Capital Assets, net of
accumulated depreciation and amortization 54,488,904$ 59,864,535$ 114,353,439$ Less: outstanding principal on capital related debt, net (25,772,254) (158,923) (25,931,177) Add: Unspent debt proceeds 11,447,463 - 11,447,463
Less: retention payable (37,611) (4,185) (41,796)
Net investments in capital assets 40,126,502$ 59,701,427$ 99,827,929$ City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

92 Note 13 – Net Position and Fund Balances (Continued)

B. Fund Financial Statements

Fund Balance Classification:

At June 30, 2022, fund balances are classified in the governmental funds as follows:

Economic
Development Nonmajor Total
General Grants Special City Debt Governmental Governmental Fund Revenue Fund Service Fund Funds Funds
Nonspendable:

Inventories 54,334 $ - $ - $ - $ 54,334$ Prepaid items and deposits 298,091 - 288,931 41,048 628,070 Total nonspendable 352,425 - 288,931 41,048 682,404 Restricted:

Economic development - 6,502,666 - - 6,502,666 Debt service - - 13,065,376 - 13,065,376 Law enforcement - - - 751,879 751,879 Local street improvements - - - 7,384,727 7,384,727 Community development - - - 76,018 76,018 Capital projects - - - 3,495,362 3,495,362 Other purposes - - - 423,923 423,923 Total restricted - 6,502,666 13,065,376 12,131,909 31,699,951 Committed:

Emergency contingency 13,697,606 - - - 13,697,606 Senior and Aquatic Center Project 10,000,000 - - - 10,000,000 Pension stabilization fund 2,239,014 - - - 2,239,014 OPEB Stabilization Fund 1,000,000 - - - 1,000,000 Total committed 26,936,620 - - - 26,936,620 Assigned:

Vehicle replacement 1,298,420 - - - 1,298,420 Equipment replacement 4,844,596 - - - 4,844,596 Future debt service payments 8,093,712 - - - 8,093,712 Total assigned 14,236,728 - - - 14,236,728 Unassigned: 300,001 - (1,097) (184,603) 114,301 Total fund balance 41,825,774$ 6,502,666 $ 13,353,210 $ 11,988,354 $ 73,670,004 $

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
93 Note 14 – Jointly Governed Organization
South Bay Regional Public Communications Authority
The City is a member of the South Bay Regional Pub lic Communications Authority (“SBRPCA”), which provides financing and equipment for a police communications system for the City and the other member municipalities of
SBRPCA - Hawthorne and Manhattan Beach. SBRPCA financia l statements can be obtained from the SBRPCA at 4440 West Broadway, Hawthorne, California 90250.

Revenues, expenses and indebtedness incurred by the SBRPCA relating to services associated with central dispatch are divided by member agencies in accordance with set percentages; however, expenses incurred relating to specific equipment and services requested by an individual member agency for use by its own public safety services are paid entirely by that member agency. As of June 30, 2022, the City’s percentage interest is 32.08%.

As of and for the year ended June 30, 2022, the lat est available information, SBRPCA’s unaudited financial information is as follows:

Total assets 13,855,876$
Total deferred outflows of resources 3,432,657
Total liabilities 7,588,259
Total deferred inflows of resources 5,777,598
Net position 3,922,676$
Total revenues 12,429,641$
Total expenses (11,549,971)
Change in net position 879,670$
Note 15 – Co
mmitments and Contingencies
The City participates in a number of federal and state assisted grant programs, which are subject to program compliance audits by the grantors or their representatives. Final closeout audits of these programs have not yet been completed. Accordingly, the City’s ultimate compliance with applicable grant requirements will be established at some future date. Expenditures, if any, which may be disallowed by the granting agencies cannot be determined at this time, although the City expects such amounts, if any, to be immaterial.

The City is currently a party to various claims and legal proceedings. In management’s opinion, the ultimate liabilities, if any, resulting from such claims and proceedings, will not materially affect the City’s financial position.

The City had outstanding construction commitments in the amount of $29,699,396 as of June 30, 2022. 94 City of Gardena
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
(This page is intentionally left blank)

REQUIRED SUPPLEMENTARY

INFORMATION (UNAUDITED)
95 96
City of Gardena
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
(This page is intentionally left blank)
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Taxes 55,741,766 $ 62,939,991 $ 66,503,135 $ 3,563,144 $ Licenses and permits 1,779,976 1,995,001 2,900,062 905,061 Intergovernmental 527,500 527,500 522,015 (5,485) Charges for services 5,079,337 4,984,384 5,365,786 381,402 Fines, forfeitures and penalties 980,000 1,080,368 923,049 (157,319) Use of money and property 255,000 151,000 (1,607,573) (1,758,573) Miscellaneous 611,295 543,795 555,490 11,695 Total revenues 64,974,874 72,222,039 75,161,964 2,939,925 EXPENDITURES:

Current:

General government:

City Clerk 584,044 584,044 667,308 (83,264) City treasurer 271,815 271,815 295,387 (23,572) Executive office 1,955,757 1,451,833 1,435,134 16,699 Administrative services 1,862,712 2,058,091 1,933,698 124,393 Non-departmental 924,484 672,397 856,286 (183,889) Public safety:

Police 29,900,384 29,900,384 29,100,808 799,576 L.A. County Fire District 12,018,155 12,105,043 12,072,169 32,874 Public works 6,338,125 6,338,125 6,091,797 246,328 Recreation and human services 3,397,540 3,397,540 3,310,663 86,877 Community development 1,857,031 1,986,333 2,410,655 (424,322) Capital outlay 1,758,600 1,563,694 954,834 608,860 Debt service:

Principal retirement -
152,428 152,428 -
Interest and fiscal charges - 26,815 26,815 -
Total expenditures 60,868,647 60,508,542 59,307,982 1,200,560

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 4,106,227 11,713,497 15,853,982 4,140,485 OTHER FINANCING SOURCES (USES):

Transfers in 6,752,279 13,254,862 5,442,274 (7,812,588) Transfers out (11,087,556) (15,133,678) (8,513,520) 6,620,158 Proceed from sale of assets 10,000 10,000 121,498 111,498 Proceeds from debt issuance - - 139,312 139,312 Total other financing sources (uses) (4,325,277) (1,868,816) (2,810,436) (941,620) NET CHANGE IN FUND BALANCE (219,050)$ 9,844,681$ 13,043,546 3,198,865$ FUND BALANCE:

Beginning of Year 28,782,228
End of Year 41,825,774$
Required Supplementary Information (Unaudited)
Budgetary Comparison Schedule
City of Gardena
For the Year Ended June 30, 2022
General Fund
97 Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Intergovernmental 610,000 $ 610,000 $ 15,400 $ (594,600) $ Charges for services - - 39,000 39,000 Fines, forfeitures and penalties 750,000 750,000 2,710,489 1,960,489 Use of money and property 20,000 20,000 16,082 (3,918) Miscellaneous - - 9 9 Total revenues 1,380,000 1,380,000 2,780,980 1,400,980 EXPENDITURES:

Current:

Community development 469,006 469,006 236,433 232,573 Capital outlay - - 62,734 (62,734) Total expenditures 469,006 469,006 299,167 169,839

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 910,994 910,994 2,481,813 1,570,819 OTHER FINANCING USES:

Transfers out (1,328,952) (1,328,952) (697,700) 631,252 Total other financing uses (1,328,952) (1,328,952) (697,700) 631,252 NET CHANGE IN FUND BALANCE (417,958)$ (417,958) $ 1,784,113 2,202,071 $ FUND BALANCE:

Beginning of Year 4,718,553
End of Year 6,502,666$
City of Gardena
Required Supplementary Information (Unaudited)
Budgetary Comparison Schedule (Continued)
For the Year Ended June 30, 2022
Economic Development Grants Special Revenue Fund
98 Note 1 - Budgetary Control and Accounting Policy




 Appropriations lapse at year-end to the extent they have not been expended, except for capital projects appropriations which lapse when individual projects are completed.

The budget is prepared under the City Manager’s direction and adopted by the City Council, generally prior to June 30 of each year. It is revised periodically during the year by the City Council. The budget presented in the financial statements includes the ori
ginal and final amounts.

The budget serves as a policy document for the deliverance of public services; however, expenditures are individually approved by the City Council. The City Manager is authorized to transfer amounts within individual fund budgets without the approval of City Council. Additional appropriations during the year may be submitted to the City Council for review and approval.

Budget information is presented for the governmental fund types. Budgeted revenue amounts represent the original budget modified by Council-authorized adjustments during the year, which were contingent upon new, or additional revenue sources.

Budgeted expenditure amounts represent original appropriations adjusted for supplemental appropriations during the year.

Total expenditures of each governmental fund may not legally exceed fund appropriations, and total expenditures for each department (for example: police department, public works department, community development department, etc.) may not legally exceed departmental appropriations. The City does not employ encumbrance accounting. The budgets conform, in all material respects, to generally accepted accounting principles.

The City’
s budget is a detailed operating plan, whic h identifies estimated costs and results in relation to estimate d revenues. The budget includes (1) the programs, projects, services, and activities to be provided during the fiscal year, (2) the estimated resources (inflows) and amounts available for appropriation and (3) the estimated charges to appropriations (outflows). The budget represents a process through which policy decisions are made, implemented, and controlled. The City’s policy prohibits expending funds for which there is no le
gal appropriation.

The City’s procedures for preparing the budgetary data reflected in the financial statements are:

City of Gardena
Required Supplementary Information (Unaudited)
Notes to the Budgetary Comparison Schedule
For the Year Ended June 30, 2022
The City adopts annual budgets for the General Fund, special revenue funds, and debt service funds as well as adopts project length budgets for projects within the City Capital Projects Fund. During the year ended June 30, 2022, the City did not adopt budgets for the Asset Forfeiture Special Revenue Fund.
99 Measurement period 2013-141 2014-15 2015-16 2016-17 2017-18 Total pension liability
Service cost 2,713,029 $ 2,672,238 $ 2,740,901 $ 3,129,118 $ 3,173,762 $ Interest 9,625,167 10,024,136 10,454,955 10,781,297 11,153,035 Changes of benefit terms - - - - - Changes of assumptions - (2,344,195) - 8,715,907 (778,396) Differences between expected and actual experience - (500,092) (36,375) (553,030) 122,851 Benefit payments, including
refunds of employee contributions (6,617,452) (6,931,772) (7,193,626) (7,669,492) (8,486,647) Net change in total pension liability 5,720,744 2,920,315 5,965,855 14,403,800 5,184,605 Total pension liability - beginning 130,287,771 136,008,515 138,928,830 144,894,685 159,298,485 Total pension liability - ending (a) 136,008,515$ 138,928,830 $ 144,894,685 $ 159,298,485 $ 164,483,090 $ Pension fiduciary net position
Contributions - employer 1,628,415 $ 2,016,919 $ 2,317,060 $ 2,645,234 $ 3,015,630 $ Contributions - employee 1,181,161 1,242,246 1,321,368 1,327,795 1,405,045 Net investment income 17,430,461 2,536,012 604,797 12,260,577 10,029,125 Benefit payments, including
refunds of employee contributions (6,617,452) (6,931,772) (7,193,626) (7,669,492) (8,486,647) Net plan to plan resource movement - - (1,234) 11,249 (291) Administrative expense - (128,654) (69,658) (164,291) (186,505) Other miscellaneous income/ (expense)2 - - - - (354,176) Net change in plan fiduciary net position 13,622,585 (1,265,249) (3,021,293) 8,411,072 5,422,181 Plan fiduciary net position - beginning3 101,939,625 115,562,210 114,296,961 111,275,668 119,686,740 Plan fiduciary net position - ending (b) 115,562,210$ 114,296,961 $ 111,275,668 $ 119,686,740 $ 125,108,921 $ Plan net pension liability - ending (a) - (b) 20,446,305$ 24,631,869 $ 33,619,017 $ 39,611,745 $ 39,374,169 $ Plan fiduciary net position as a percentage 84.97% 82.27% 76.80% 75.13% 76.06% of the total pension liability
Covered payroll4
17,651,457$ 18,094,788 $ 19,012,911 $ 19,306,012 $ 19,929,430 $ Plan net pension liability as a percentage
of covered payroll 115.83% 136.13% 176.82% 205.18% 197.57% Notes to Schedule:

City of Gardena
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios For the Year Ended June 30, 2022
Last Ten Fiscal Years
1 Historical information is presented only for measurement periods for periods after GASB 68 implementation in 2013-14. Additional years of informat ion will be displayed as it becomes available.

California Public Employees' Retirement System ("CalPERS") - Miscellaneous Plan 2 During Fiscal Year 2017-18, as a result of Governmental Accounting Standards Board Statement (GASB) No. 75, Accounting and Financial Reporting for Postemployment Benefit Plans Other than Pensions (GASB 75), CalPERS reported its proportionate share of activity related to postemployment benefits for participation in the State of C alifornia’s agent OPEB plan. Accordingly, CalPERS recorded a one-time expense as a result of the adoption of GASB 75. Additionally, CalPERS employees participate in various State of California agent pension plans and during Fiscal Year 2017-18, CalPERS recorded a correction to previously reported financial statements to properly reflect its proportionate share of activity re lated to pensions in accordance with GASB Statement No. 68, Accounting and Financial Reporting for Pensions (GASB 68). 3 Includes any beginning of year adjustment.
4Includes one year's payroll growth using 2.75% payroll growth assumption for fiscal years ended June 30, 2018-21; 3.00% payroll growth assumption for fiscal year ended June 30, 2014 -17.

Changes of Assumptions: None in 2019 -2021. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Assumptions December 2017. There were no changes in the discount rate. In 2017, the discount rate was reduced from 7.65 percent to 7.15 percent. In 2016, there were n o changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 percent discount rate.

Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2018 v aluation date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes). 100
Measurement period 2018-19 2019-2020 2020-2021
Total pension liability
Service cost 3,162,100$ 3,329,543$ 3,190,091$ Interest 11,820,982 12,201,071 12,451,995
Changes of benefit terms - - -
Changes of assumptions - - -
Differences between expected and actual experience 3,672,690 (593,300) (1,841,509) Benefit payments, including
refunds of employee contributions (8,816,825) (9,498,332) (10,721,565) Net change in total pension liability 9,838,947 5,438,982 3,079,012 Total pension liability - beginning 164,483,090 174,322,037 179,761,019 Total pension liability - ending (a) 174,322,037$ 179,761,019 $ 182,840,031 $ Pension fiduciary net position
Contributions - employer 3,688,807 $ 4,397,533 $ 46,940,155 $ Contributions - employee 1,457,546 1,611,737 1,203,298 Net investment income 8,130,102 6,417,192 35,069,162 Benefit payments, including
refunds of employee contributions (8,816,825) (9,498,332) (10,721,565) Net plan to plan resource movement - - -
Administrative expense (89,280) (182,534) (132,085) Other miscellaneous income/ (expense)
2 291 - -
Net change in plan fiduciary net position 4,370,641 2,745,596 72,358,965 Plan fiduciary net position - beginning3 125,108,921 129,479,562 132,225,158 Plan fiduciary net position - ending (b) 129,479,562$ 132,225,158 $ 204,584,123 $ Plan net pension liability - ending (a) - (b) 44,842,475$ 47,535,861 $ (21,744,092) $ Plan fiduciary net position as a percentage 74.28% 73.56% 111.89% of the total pension liability
Covered payroll4
20,102,352$ 21,343,226 $ 20,567,963 $
Plan net pension liability as a percentage
of covered payroll 223.07% 222.72% -105.72%
City of Gardena
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios (Continued) For the Year Ended June 30, 2022
Last Ten Fiscal Years
California Public Employees' Retirement System ("CalPERS") - Miscellaneous Plan 101
Measurement period June 30, 20141 June 30, 2015 June 30, 2016 June 30, 2017 June 30, 2018 City Proportion of the Net Pension Liability 0.65549% 0.65832% 0.62924% 0.61206% 0.62701% City's Proportionate Share of
the net Pension Liability 40,787,661 $ 45,186,413 $ 54,448,433 $ 60,699,742 $ 60,419,894 $ City's Covered Payroll 9,078,779 $ 9,351,143 $ 10,491,839 $ 10,435,515 $ 11,232,919 $ City's Proportionate Share of the Net Pension
Liability as a Percentage of Its Covered Payroll 449.26% 483.22% 518.96% 581.67% 537.88% Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Total Pension Liability 75.54% 77.40% 68.79% 68.27% 69.50% Last Ten Fiscal Year
s
City of Gardena
Required Supplementary Information (Unaudited)
Schedule of the City's Proportionate Share of the Net Pension Liability and Related Ratios For the Year Ended June 30, 2022
1 Historical information is presented only for measurement periods for periods after GASB 68 implementation in 2013-14. Additional years of information will be displayed as it becomes available.

California Public Employees' Retirement System ("CalPERS") - Safety Plan 102
Measurement period June 30, 2019 June 30, 2020 June 30, 2021 City Proportion of the Net Pension Liability 0.55899% 0.56472% -0.50839% City's Proportionate Share of
the net Pension Liability 57,280,320$ 61,443,923$ (27,495,287)$ City's Covered Payroll 12,156,428$ 11,992,232$ 11,768,395$ City's Proportionate Share of the Net Pension
Liability as a Percentage of Its Covered Payroll 471.19% 512.36% -233.64% Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Total Pension Liability 72.58% 11,992,232$ 11,768,395$ Last Ten Fiscal Year
s
California Public Employees' Retirement System ("CalPERS") - Safety Plan City of Gardena
Required Supplementary Information (Unaudited)
Schedule of the City's Proportionate Share of the Net Pension Liability and Related Ratios (Continued) For the Year Ended June 30, 2022
103
2013-141 2014-15 2015-16 2016-17 2017-18
Actuarially determined contribution 1,628,415 $ 2,016,919 $ 2,317,060 $ 2,645,234 $ 3,015,630 $ Contributions in relation to
the actuarially determined contribution2 (1,628,415) (2,016,919) (2,317,060) (2,645,234) (3,015,630) Contribution deficiency (excess) - $ - $ - $ - $ - $ Covered payroll3
17,651,457$ 18,094,788 $ 19,012,911 $ 19,306,012 $ 19,929,430 $ Contributions as a percentage of covered payroll3 9.23% 11.15% 12.19% 13.70% 15.13% Notes to Schedule:

Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll
Asset valuation method Fair value
Inflation 2.50%
Salary increases Var ies by entry age and service
Payroll Growth 2.750%
Investment rate o
f return
Retirement age
Mortality
The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries.

City of Gardena
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions
For the Year Ended June 30, 2022
1 Historical information is presented only for measurement periods after GASB 68 implementation in 2013-14. Additional years of information will be displayed as it becomes available.

The actuarial methods and assumptions used to se t the actuarially determined contributions for Fiscal Year 2019-20 were derived from the June 30, 2017 funding valuation report.

7.00% net of pension plan investment and administrative expenses; includes Inflation.

The probabilities of retirement are based on the 2017 CalPERS Experience stud y for the period from 1997 to 2015.
3 Includes one year’s payroll growth using 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-22; 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
2 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. 104
2018-19 2019-20 2020-214 2021-22
Actuarially determined contribution 3,688,807$ 4,397,533$ 4,625,188$ 2,100,703$ Contributions in relation to
the actuarially determined contribution2 (3,688,807) (4,397,533) (46,940,155) (2,100,703) Contribution deficiency (excess) - $ - $ (42,314,967) $ - $ Covered payroll3
20,102,352$ 21,343,226 $ 20,567,963 $ 21,133,582 $
Contributions as a percentage of covered payroll3 18.35% 20.60% 228.22% 9.94% Required Supplementary Information (Unaudited) (Continued) Schedule of Contributions - Pensions (Continued)
For the Year Ended June 30, 2022
Last Ten Fiscal Years
California Public Employees' Retirement System ("CalPERS") - Miscellaneous Plan 4 During FY2020-21, the City contributed $42,022,534 additional funds to CalPERS via proceeds of the 2020 Taxable Pension Obligation Bonds.

City of Gardena
105
2013-141 2014-15 2015-16 2016-17 2017-18
Actuarially determined contribution 3,930,218 $ 4,265,350 $ 4,917,350 $ 5,401,275 $ 6,093,811 $ Contributions in relation to the
actuarially determined contribution (3,930,218) (4,265,350) (4,917,350) (5,401,275) (6,093,811) Contribution deficiency (excess) - $ - $ - $ - $ - $ Covered payroll 2
9,078,779$ 9,351,143 $ 10,491,839 $ 10,435,515 $ 11,232,919 $ Contributions as a percentage of covered payroll 43.29% 45.61% 46.87% 51.76% 54.25% Notes to Schedule:

Changes of Assumptions: None in 2019-2021. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Assumptions December 2017. There were no changes in the discount rate. In 2017, the discount rate was reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 percent discount rate.
2 Payroll from 2020-21 was assumed to increase by the 2.75 percent payroll growth assumption.

City of Gardena
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions (Continued)
For the Year Ended June 30, 2022
1 Historical information is presented only for measurement periods after GASB 68 implementation in 2013-14. Additional years of information will be displayed as it becomes available.

Change in Benefit Terms: There was no change in benefit terms.

California Public Employees' Retirement System ("CalPERS") - Safety Plan Last Ten Fiscal Years
106
2018-19 3 2019-20 2020-21 4 2021-222
Actuarially determined contribution 6,617,559$ 6,185,808$ 8,595,603$ 2,950,604$ Contributions in relation to the
actuarially determined contribution3 (12,677,559) (6,185,808) (60,369,859) (2,950,604) Contribution deficiency (excess) (6,060,000) $ - $ (51,774,256) $ - $ Covered payroll 12,156,428 $ 11,992,232 $ 11,768,395 $ 12,092,026 $ Contributions as a percentage of covered payroll 104.29% 51.58% 512.98% 24.40% California Public Employees' Retirement System ("CalPERS") - Safety Plan 3 During FY2018-19, the City contributed $6,060,000 to CalPERS to proceed with the 20 year fresh start of the unfunded liability to the safety plan.
4 During FY2020-21, the City contributed $51,774,256 additional funds to CalPERS via proceeds of the 2020 Taxable Pension Obligation Bonds.

City of Gardena
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions (Continued)
For the Year Ended June 30, 2022
Last Ten Fiscal Years
107
108
City of Gardena
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
(This page is intentionally left blank)
Measurement period 2016-171 2017-18 2018-19 2019-20 2020-21 Total OPEB liability
Service cost 2,001,000 $ 1,619,506 $ 1,649,332 $ 1,902,932 $ 2,450,797 $ Transfers to Sewer - (288,000) - - -
Interest 1,888,000 2,141,404 2,284,925 2,265,606 1,663,721 Changes of benefit terms - - - - -
Changes of assumptions (7,755,000) (4,569,074) 3,665,059 10,099,593 654,965 Differences between expected and actual experience - 2,253,827 - (2,109,370) - Benefit payments, including refunds (2,162,000) (2,247,465) (2,251,080) (2,075,527) (2,237,985) Other - funding rates used by benefits paid 580,000 - - - - Net change in total OPEB liability (5,448,000) (1,089,802) 5,348,236 10,083,234 2,531,498 Total OPEB liability - beginning of the year 65,056,000 59,608,000 58,518,198 63,866,434 73,949,668 Total OPEB liability - end of the year (a) 59,608,000$ 58,518,198 $ 63,866,434 $ 73,949,668 $ 76,481,166 $ OPEB fiduciary net position
Contributions - employer - $ 2,247,465$ 2,401,080$ 2,075,527$ 2,237,985$ Contributions - employee - - - - -
Net investment income - - 1,792 5,361 43,168 Benefit payments, including refunds - (2,247,465) (2,251,080) (2,075,527) (2,237,985) Administrative expense - - (1) (74) (59)
Other changes - - - - -
Net change in plan fiduciary net position - - 151,791 5,287 43,109 Plan fiduciary net position - beginning of year - - - 151,791 157,078 Plan fiduciar
y net position - end of year (b) -$ -$ 151,791$ 157,078$ 200,187$ Plan net OPEB liability - end of year (a) - (b) 59,608,000$ 58,518,198 $ 63,714,643 $ 73,792,590 $ 76,280,979 $ Plan fiduciary net position as a percentage
of the total OPEB liability 0.00% 0.00% 0.24% 0.21% 0.26% Covered payroll2
25,500,000$ 23,523,270 $ 24,650,894 $ 25,558,730 $ 22,948,265 $ Plan net OPEB liability as a percentage of
covered payroll 233.76% 248.77% 258.47% 288.72% 332.40% Notes to Schedule:

Changes of benefit terms: There were no changes of benefit terms in 2020.

Changes of assumptions: In 2020, the accounting discunt rate decrease from 2.21 percent to 2.16 percent. In 2020, the accounting discount rate decreased from 3.50 percent to 2.21 percent. In 2019, the accounting discount rate increased from 3.87 percent to 3.50 percent. In 2018, the accounting discount rate increased from 3.58 percent to 3.87 percent. In 2017, the accounting discount rate increased from 2.85 percent to 3.58 percent.
1 Historical information is presented for measurement periods after GASB 75 implementation in 2016-17. Additional years' information will be displayed as it becomes available.

City of Gardena
Required Supplementary Information (Unaudited)
Schedule of Changes in Net OPEB Liability and Related Ratios For the Year Ended June 30, 2022
Last Ten Fiscal Years
Governmental Activities Retiree Healthcare Plan
109
Measurement period 2016-171 2017-18 2018-19 2019-20 2020-21 Total OPEB liability
Service cost 232,000 $ 238,960 $ 291,129 $ 299,863 $ 340,578 $ Interest 598,000 629,344 661,199 706,976 691,860 Changes of benefit terms - - - - - Changes of assumptions - (357,602) - 117,261 - Differences between expected and actual experience - 301,185 - (294,459) - Benefit payments, including refunds (462,000) (494,701) (289,528) (276,271) (272,358) Other - funding rates used by benefits paid 190,000 - - - - Net change in total OPEB liability 558,000 317,186 662,800 553,370 760,080 Total OPEB liability - beginning of year 8,774,000 9,332,000 9,649,186 10,311,986 10,865,356 Total OPEB liability - end of year (a) 9,332,000$ 9,649,186 $ 10,311,986 $ 10,865,356 $ 11,625,436 $ OPEB fiduciary net position
Contributions - employer 462,000 $ 4,516,245 $ 289,528 $ 276,271 $ 272,358 $ Contributions - employee - - - - - Net investment income - 60,118 251,747 152,987 1,231,806 Benefit payments, including refunds (462,000) (494,701) (289,528) (276,271) (272,358) Administrative expense - (505) (874) (2,115) (1,696) Other changes - - - - - Net change in plan fiduciary net position - 4,081,157 250,873 150,872 1,230,110 Plan fiduciary net position - beginning of year - - 4,081,157 4,332,030 4,482,902 Plan fiduciary net position - end of year (b) -$ 4,081,157$ 4,332,030 $ 4,482,902 $ 5,713,012 $ Plan net OPEB liability - end of year (a) - (b) 9,332,000$ 5,568,029 $ 5,979,956 $ 6,382,454 $ 5,912,424 $ Plan fiduciary net position as a percentage
of the total OPEB liability 0.00% 42.30% 42.01% 41.26% 49.14% Covered payroll 9,759,000$ 10,316,000 $ 9,798,690 $ 10,811,701 $ 8,791,518 $ Plan net OPEB liability as a percentage of
covered payroll 95.62% 53.97% 61.03% 59.03% 67.25%
Notes to Schedule:

Changes of benefit terms: There were no changes of benefit terms in 2020.

Changes of assumptions: In 2020, the discount rate changed from 6.75 percent to 6.25 percent and the inflation assumption was changed from 2.75 percent per year to 2.50 percent. In 2019, There were no changes in assumptions. In 2018, medical plan at retirement assumption updated, trend rate updated, demographic assumptions were updated to CalPERS 1997-2015 Experience Study, and mortality improvement scale was updated to Scale MP-2018. In 2017, there were no changes.
1 Historical information is presented only for measurement periods after GASB 75 implementation in 2016-17.

City of Gardena
Required Supplementary Information (Unaudited)
Schedule of Changes in Net OPEB Liability and Related Ratios (Continued) For the Year Ended June 30, 2022
Last Ten Fiscal Years
GTrans Retiree Healthcare Plan
110
Measurement period 2016-171 2017-18 2018-19 2019-20 2020-21 Total OPEB liability
Service cost - $ 16,001$ 19,620$ 22,199$ 73,740$ Transfers from the Governmental Activities - 288,000 - - - Interest - 10,883 11,678 12,351 11,482 Changes of benefit terms - - - - -
Changes of assumptions - (32,020) 17,238 64,526 5,084 Differences between expected and actual experience - (709) - 16,025 - Benefit payments, including refunds - - - - -
Other - funding rates used by benefits paid - - - - - Net change in total OPEB liability - 282,155 48,536 115,101 90,306 Total OPEB liability - beginning of year - - 282,155 330,691 445,792 Total OPEB liability - end of year (a) -$ 282,155$ 330,691$ 445,792$ 536,098$ OPEB fiduciary net position
Contributions - employer -$ -$ -$ -$ -$
Contributions - employee - - - - -
Net investment income - - - - -
Benefit payments, including refunds - - - - -
Administrative expense - - - - -
Other changes - - - - -
Net change in plan fiduciary net position - - - - - Plan fiduciary net position - beginning of year - - - - - Plan fiduciar
y net position - end of year (b) -$ -$ -$ -$ -$
Plan net OPEB liability - end of year (a) - (b) -$ 282,155$ 330,691$ 445,792$ 536,098$ Plan fiduciary net position as a percentage 0.00% 0.00% 0.00% 0.00% 0.00% of the total OPEB liability
Covered payroll N/A 388,821$ 482,665$ 515,111$ 497,972$ Plan net OPEB liability as a percentage of
covered payroll N/A 72.57% 68.51% 86.54% 107.66%
Notes to Schedule:

Changes of benefit terms: There were no changes of benefit terms in 2020.

Changes of assumptions: In 2020, the accounting discunt rate decrease from 2.21 percent to 2.16 percent. In 2020, the accounting discount rate decreased from 3.50 percent to 2.21 percent. In 2019, the accounting discount rate increased from 3.87 percent to 3.50 percent. In 2018, the accounting discount rate increased from 3.58 percent to 3.87 percent. In 2017, the accounting discount rate increased from 2.85 percent to 3.58 1 Historical information is presented only for measurement periods after GASB 75 implementation in 2016-17.

City of Gardena
Required Supplementary Information (Unaudited)
Schedule of Changes in Net OPEB Liability and Related Ratios (Continued) For the Year Ended June 30, 2022
Last Ten Fiscal Years
Sewer Retiree Healthcare Plan
111
2016-171 2017-18 2018-19 2019-20 2020-21
Actuarially determined contribution 5,029,000 $ N/A 3,631,000 $ 3,867,000 $ 3,941,000 $ Contributions in relation to
the actuarially determined contribution (2,162,000) (2,247,465) (2,557,088) (2,075,527) (2,237,985) Contribution deficiency (excess) 2,867,000 $ (2,247,465) $ 1,073,912 $ 1,791,473 $ 1,703,015 $ Covered payroll N/A 23,523,270 $ 24,650,894 $ 25,558,730 $ 22,948,265 $ Contributions as a percentage of covered payroll N/A N/A 10.37% 8.12% 9.75% Notes to Schedule:

Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry Age Normal, Level % of pay
Amortization method Level % of pay
Amortization period 17-year average remaining period for 2021/22 Asset valuation method gains and
Discount rate 6.25%
General inflation 2.50%
Medical trend
Mortality CalPERS 1997-2015 experience study.

Mortality improvement
Governmental Activities Retiree Healthcare Plan
City of Gardena
Required Supplementary Information (Unaudited)
Schedule of Contributions - Other Postemployment Benefits Plans For the Year Ended June 30, 2022
Last Ten Fiscal Years
1 Historical information is presented only for measurement periods after GASB 75 implementation in 2016-17.

The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2021-22 were derived from the June 30, 2020 funding valuation report.

Non-Medicare - 6.75% for 2022, decreasing to an ultimate rate of 3.75% in 2076.

Medicare - 4.75% for 2022, decreasing to an ultimate rate of 3.75% in 2076.

Post-retirement mortality projected fully generational with Scale MP-2020. 112
2021-22
Actuarially determined contribution 4,211,000$
Contributions in relation to
the actuarially determined contribution (2,286,676)
Contribution deficiency (excess) 1,924,324$
Covered payroll 24,154,486$
Contributions as a percentage of covered payroll 9.47%
Governmental Activities Retiree Healthcare Plan (Continued) City of Gardena
Required Supplementary Information (Unaudited)
Schedule of Contributions - Other Postemployment Benefits Plans (Continued) For the Year Ended June 30, 2022
Last Ten Fiscal Years
113
2016-171 2017-18 2018-19 2019-20 2020-21
Actuarially determined contribution 848,000 $ 785,000 $ 721,000 $ 776,000 $ 848,000 $ Contributions in relation to
the actuarially determined contribution (462,000) (4,516,544) (532,056) (276,271) (272,358) Contribution deficiency (excess) 386,000 $ (3,731,544) $ 188,944 $ 499,729 $ 575,642 $ Covered payroll 9,759,000 $ 10,316,000 $ 9,798,690 $ 10,811,701 $ 8,791,518 $ Contributions as a percentage of covered payroll 4.73% 43.78% 5.43% 2.56% 3.10% Notes to Schedule:

Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry Age Normal, Level % of pay
Amortization method Level % of pay
Amortization period 17-year average remaining period for 2021/2 Asset valuation method gains and
Discount rate 6.25%
General inflation 2.50%
Medical trend
Mortality CalPERS 1997-2015 experience study.

Mortality improvement
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2021-22 were derived from the June 30, 2020 funding valuation report.

Post-retirement mortality projected fully generational with Scale MP-2020.

Non-Medicare - 6.75% for 2022, decreasing to an ultimate rate of 3.75% in 2076.

Medicare - 5.85% for 2021, decreasing to an ultimate rate of 3.75% in 2076.

GTrans Retiree Healthcare Plan
1 Historical information is presented only for measurement periods after GASB 75 implementation in 2016-17.

City of Gardena
Required Supplementary Information (Unaudited)
Schedule of Contributions - Other Postemployment Benefits Plans (Continued) For the Year Ended June 30, 2022
Last Ten Fiscal Years
114
2021-22
Actuarially determined contribution 899,000$
Contributions in relation to
the actuarially determined contribution (873,696)
Contribution deficiency (excess) 25,304$
Covered payroll 10,484,293$
Contributions as a percentage of covered payroll 8.33%
GTrans Retiree Healthcare Plan (Continued)
City of Gardena
Required Supplementary Information (Unaudited)
Schedule of Contributions - Other Postemployment Benefits Plans (Continued) For the Year Ended June 30, 2022
Last Ten Fiscal Years
115
2016-171 2017-18 2018-19 2019-20 2020-21
Actuarially determined contribution - $ - $ 25,000$ 26,000 $ 46,000 $ Contributions in relation to
the actuarially determined contribution - - - - - Contribution deficiency (excess) - $ - $ 25,000$ 26,000 $ 46,000 $ Covered payroll N/A 388,821 $ 482,665 $ 515,111 $ 497,972 $ Contributions as a percentage of covered payroll N/A N/A 0.00% 0.00% 0.00% Notes to Schedule:

Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry Age Normal, Level % of pay
Amortization method Level % of pay
Amortization period 17-year average remaining period for 2021/22 Asset valuation method gains and
Discount rate 6.25%
General inflation 2.50%
Medical trend
Mortality CalPERS 1997-2015 experience study.

Mortality improvement
Sewer Retiree Healthcare Plan
City of Gardena
Required Supplementary Information (Unaudited)
Schedule of Contributions - Other Postemployment Benefits Plans (Continued) For the Year Ended June 30, 2022
Last Ten Fiscal Years
1 Historical information is presented only for measurement periods after GASB 75 implementation in 2016-17.

The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2021-22 were derived from the June 30, 2020 funding valuation report.

Non-Medicare - 6.75% for 2022, decreasing to an ultimate rate of 3.75% in 2076.

Medicare - 4.75% for 2022, decreasing to an ultimate rate of 3.75% in 2076.

Post-retirement mortality projected fully generational with Scale MP-2020. 116
2021-22
Actuarially determined contribution 48,000$
Contributions in relation to
the actuarially determined contribution -
Contribution deficiency (excess) 48,000$
Covered payroll 386,578$
Contributions as a percentage of covered payroll 0.00%
Sewer Retiree Healthcare Plan (Continued)
City of Gardena
Required Supplementary Information (Unaudited)
Schedule of Contributions - Other Postemployment Benefits Plans (Continued) For the Year Ended June 30, 2022
Last Ten Fiscal Years
117
118
City of Gardena
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
(This page is intentionally left blank)

SUPPLEMENTARY INFORMATION
119
120
City of Gardena
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
(This page is intentionally left blank)
Human Services Grants Special Revenue Fund - Represents six funds. Two of the funds provide meals to the elderly and disabled funded by Aging Program. These meals are served at the Nakaoka Center or delivered directly to the participants. One grant provides for a socialization program for elderly persons suffering from Alzheimer's Disease or dementia. The two Family Child Care grants are funded by the California Department of Education Social Services (“CDSS”) and provides daycare and early education to qualified families.

Community Development Block Grant (CDBG) Special Revenue Fund - To account for funding from HUD to fund programs that benefit low income, elderly or disabled individuals. A number of programs are funded with these monies, including an at-risk youth program, code enforcement, a handy worker program for small home repairs and access ramps, projects to improve or eliminate slum blight conditions, as well as assistance for landlords in designated areas to improve living conditions for qualified tenants.

Gas Tax Special Revenue Fund - To account for funding from the State of California for the state and county gas tax allocation and the Senate Bill No. 1 (SB1) allocation.

Public Works Grants Special Revenue Fund - Represents thirteen funds used to implement various capital improvements projects.

The Artesia Boulevard Landscaping Assessment is received from property assessments and restricted to funding district landscaping activities. The Transportation Community and System Preservation grants is received from Caltrans to implement programs that promote pedestrian friendly areas, job growth, and business retention along the Rosecrans corridor. The Measure Proposition A Park Bond Safe neighborhood Parks Proposition of 1992 and 1996 is received from Los Angeles County Regional Park and Open Space District to be used for acquisition and improvements to parks. The South Coast AQMD fund is monies received from the motor vehicle tax to be expended on programs to reduce air pollution, which is necessary to comply with the California Clean Air Act of 1988. Measure R funds are derived from Los Angeles County 1/2 cent sales tax approved by voters in November 2008 to meet the transportation needs of Los Angeles County. The program is to be used for transportation projects that have been approved by the Los Angeles County Metropolitan Transportation Authority ("MTA"). The Measure W fund is derived from Los Angeles County 2.5 cents parcel tax approved by voters in November 2018 to increase local water supply, improve water quality, and protect public health. This fund is use for Municipal Separate Storm Sewer System (“MS4”) programs and projects.

City Capital Projects Fund - Represents the financial resources that are restricted, committed or assigned to expenditures for capital outlay.

American Rescue Plan Special Revenue Fund - To account for revenues and activities for American Rescue Plan Act funding which was provided to fund additional relief for individuals and businesses affected by the coronavirus pandemic.

NONMAJOR

GOVERNMENTAL FUNDS
Public Safety Grants Special Revenue Fund - Represents twenty-one funds used to fund various police activities. Four of the grants receive funding from the California Office of Traffic Safety. These grants fund sobriety checkpoints, saturation patrols, seatbelt enforcement, warrant/probation sweeps and additional activities to raise public awareness and reduce alcohol involved fatalities. Two One grants from the U.S. Department of Justice provides funding for technological programs and equipment to improve public safety issues. Finally, The COPS grant and Traffic Safety grant are funds earmarked for any police activity that will increase public safety.

The Federal Emergency Management Agency (“FEMA”) Coronavirus Pandemic Public Assistance Program provides support to meet emergency needs during the COVID-19 pandemic. The State Homeland Security Grant Program (“HSGP”) provides funding to prevent terrorism and other catastrophic events and to prepare local governments for the threats and hazards that pose the greatest risk to the security of the community.

Consolidated Lighting District Special Revenue Fund - To account for monies received from property assessments restricted to fund district lighting activities.

Prop C Local Return Special Revenue Fund - To account for monies derived from Los Angeles County 1/2% sales tax, received from MTA and expended on streets and roads heavily used by public transit.

Asset Forfeiture Special Revenue Fund - To account for monies that were seized from criminal activities and is to be used solely for law enforcement purposes.
121
Consolidated Prop C
Lighting Local Gas Asset
District Return Tax Forfeiture
ASSETS
Cash and investments 598,999 $ 3,402,625 $ 3,208,903 $ 769,662 $ Receivables:

Accounts - - 295,725 - Taxes 25,104 - - - Prepaid items and deposits - - 4,818 - Due from other governmental agencies - - - - Total assets 624,103$ 3,402,625 $ 3,509,446 $ 769,662 $ Liabilities:

Accounts payable 44,429 $ - $ 39,186$ 17,783 $ Accrued liabilities - - - - Salaries and benefits payable - 1,604 4,676 - Due to other funds - - 56,734 - Retention payable - - - - Unearned revenue - - - - Total liabilities 44,429 1,604 100,596 17,783 Deferred inflows of resources:

Unavailable revenue - - - - Total deferred inflows of resources - - - - Fund Balances:

Nonspendable - - 4,818 - Restricted 579,674 3,401,021 3,404,032 751,879 Unassigned (deficit) - - - - Total fund balances 579,674 3,401,021 3,408,850 751,879 Total liabilities, deferred inflows of
resources, and fund balances 624,103$ 3,402,625 $ 3,509,446 $ 769,662 $ (Continued)

RESOURCES AND FUND BALANCES
City of Gardena
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2022

LIABILITIES, DEFERRED INFLOWS OF
Special Revenue Funds
122
Community
Development
Public Safety Public Works Human Services Block Grant
Grants Grants Grants (CDBG)
ASSETS
Cash and investments 520,887 $ 3,555,951 $ 154,646 $ 113,806 $ Receivables:

Accounts 777,937 - 2,870 35,495
Taxes - 28 - -
Prepaid items and deposits 12,500 19,498 4,232 - Due from other governmental agencies 27,934 505,229 716,369 - Total assets 1,339,258$ 4,080,706$ 878,117$ 149,301$ Liabilities:

Accounts payable 8,057$ 16,681$ 250,934$ 3,318$ Accrued liabilities - - 70 -
Salaries and benefits payable 4,364 3,164 55,171 11,719 Due to other funds 791,153 485,152 137,416 23,968 Retention payable - - - -
Unearned revenue - - - -
Total liabilities 803,574 504,997 443,591 39,005 Deferred inflows of resources:

Unavailable revenue 707,787 362,746 6,371 34,278 Total deferred inflows of resources 707,787 362,746 6,371 34,278 Fund Balances:

Nonspendable 12,500 19,498 4,232 -
Restricted - 3,193,465 423,923 76,018
Unassigned (deficit) (184,603) - - -
Total fund balances (172,103)
3,212,963 428,155 76,018
Total liabilities, deferred inflows of
resources, and fund balances 1,339,258$ 4,080,706$ 878,117$ 149,301$ (Continued)

RESOURCES AND FUND BALANCES

LIABILITIES, DEFERRED INFLOWS OF
City of Gardena
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2022
Special Revenue Funds
123
Special Capital
Revenue Fund Projects Fund
Total
American City Nonmajor
Rescue Capital Governmental
Plan Projects Funds
ASSETS
Cash and investments 3,950,807 $ 1,079,733 $ 17,356,019 $ Receivables:

Accounts - - 1,112,027 Taxes - - 25,132 Prepaid items and deposits - - 41,048 Due from other governmental agencies - - 1,249,532 Total assets 3,950,807$ 1,079,733 $ 19,783,758 $ Liabilities:

Accounts payable -$ 740,225$ 1,120,613 $ Accrued liabilities - - 70 Salaries and benefits payable - - 80,698 Due to other funds - - 1,494,423 Retention payable - 37,611 37,611 Unearned revenue 3,950,807 - 3,950,807 Total liabilities 3,950,807 777,836 6,684,222 Deferred inflows of resources:

Unavailable revenue - - 1,111,182 Total deferred inflows of resources - - 1,111,182 Fund Balances:

Nonspendable - - 41,048 Restricted - 301,897 12,131,909 Unassigned (deficit) - - (184,603) Total fund balances - 301,897 11,988,354 Total liabilities, deferred inflows of
resources, and fund balances 3,950,807$ 1,079,733 $ 19,783,758 $ (Concluded)

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
City of Gardena
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2022
124
Consolidated Prop C
Lighting Local Gas Asset
District Return Tax Forfeiture
REVENUES:

Taxes 764,029 $ 1,276,438 $ - $
-$
In
tergovernmental -
-
2,685,713 29,046
Charges for services -
-
-
-
Fine
s, forfeitures, and penalties -
-
-
-
U
se of money and property 2,071
10,598 9,718
2,490
Mis
cellaneous -
-
-
-
To
tal revenues 766,100 1,287,036 2,695,431 31,536 EXPENDITURES:

Current:

General government -

-
9,405
-
P
ublic safety -
-
-
58,791
Public works 711,935 33,624 555,718 - Recreat
ion and human services -
-
-
-
C
ommunity development -
-
-
-
Ca
pital outlay -
-
-
-
Deb
t service:

Principal retirement 10,388 -
-
-
In
terest and fiscal charges -
-
-
-
To
tal expenditures 722,323 33,624 565,123 58,791

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 43,777 1,253,412 2,130,308 (27,255) OTHER FINANCING SOURCES (USES):

Proceeds from sale of assets -

-
-
6,125
Transfers in - - - -
T
ransfers out (23,325) (748,793) (885,067) - Total
other financing sources (uses) (23,325) (748,793) (885,067) 6,125

NET CHANGES
IN FUND BALANCES 20,452 504,619 1,245,241 (21,130) FUND BALANCES:

Beginning of year 559,222 2,896,402 2,163,609 773,009
End of year 579,674$ 3,401,021$ 3,408,850$ 751,879$ (Continued)
Special Revenue Funds
City of Gardena
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds
For the Year Ended June 30, 2022
125
Community
Development
Public Safety Public Works Human Services Block Grant
Grants Grants Grants (CDBG)
REVENUES:

Taxes -$ 2,119,860$ - $ - $ Intergovernmental 317,529 1,120,714 4,100,185 1,346,667 Charges for services - 43,258 - - Fines, forfeitures, and penalties 27,148 - - - Use of money and property 1,538 14,605 1,462 135 Miscellaneous - 324 35,249 - Total revenues 346,215 3,298,761 4,136,896 1,346,802 EXPENDITURES:

Current:

General government 99,443 - - - Public safety 313,705 - - - Public works 1,765 473,972 - - Recreation and human services 6,422 12,682 3,988,295 - Community development 12,861 - - 401,683 Capital outlay - 60,985 - - Debt service:

Principal retirement - 26,825 4,346 - Interest and fiscal charges 4,893 397
Total expenditures 434,196 579,357 3,993,038 401,683

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (87,981) 2,719,404 143,858 945,119 OTHER FINANCING SOURCES (USES):

Proceeds from sale of assets - - - - Transfers in 331,302 12,772 177,852 -
Transfers out - (3,017,261) - - Total other financing sources (uses) 331,302 (3,004,489) 177,852 - NET CHANGES IN FUND BALANCES 243,321 (285,085) 321,710 945,119 FUND BALANCES:

Beginning of year (415,424) 3,498,048 106,445 (869,101) End of year (172,103) $ 3,212,963 $ 428,155 $ 76,018 $ (Continued)
Special Revenue Funds
City of Gardena
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2022
126
Special Capital
Revenue Fund Projects Fund
Total
American City Nonmajor
Rescue Capital Governmental
Plan Projects Funds
REVENUES:

Taxes -$ -$ 4,160,327$
Intergovernmental 3,552,584 - 13,152,438
Charges for services - - 43,258
Fines, forfeitures, and penalties - - 27,148
Use of money and property - - 42,617
Miscellaneous - - 35,573
Total revenues 3,552,584 - 17,461,361
EXPENDITURES:

Current:

General government - - 108,848
Public safety - - 372,496
Public works - - 1,777,014
Recreation and human services - - 4,007,399
Community development - - 414,544
Capital outlay - 7,850,554 7,911,539
Debt service:

Principal retirement - - 41,559
Interest and fiscal charges 5,290
Total expenditures - 7,850,554 14,638,689

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 3,552,584 (7,850,554) 2,822,672 OTHER FINANCING SOURCES (USES):

Proceeds from sale of assets - - 6,125
Transfers in - 7,850,554 8,372,480
Transfers out (3,552,584) - (8,227,030)

Total other financing sources (uses) (3,552,584) 7,850,554 151,575 NET CHANGES IN FUND BALANCES - - 2,974,247
FUND BALANCES:

Beginning of year - 301,897 9,014,107
End of year -$ 301,897$ 11,988,354$
(Concluded)
City of Gardena
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2022
127
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Taxes 778,181 $ 778,181 $ 764,029 $ (14,152) $ Use of money and property 2,500 2,500 2,071 (429) Total revenues 780,681 780,681 766,100 (14,581) EXPENDITURES:

Current:

Public works 716,831 716,831 711,935 4,896 Debt service:

Principal retirement 13,850 13,850 10,388 3,462 Total expenditures 730,681 730,681 722,323 8,358

EXCESS OF REVENUES OVER
EXPENDITURES 50,000 50,000 43,777 (6,223) OTHER FINANCING USES:

Transfers out (50,000) (25,000) (23,325) 1,675 Total other financing uses (50,000) (25,000) (23,325) 1,675 NET CHANGE IN FUND BALANCE -$ 25,000$ 20,452 (4,548) $ FUND BALANCE:

Beginning of year 559,222
End of year 579,674$
City of Gardena
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Consolidated Lighting District Special Revenue Fund
For the Year Ended June 30, 2022
128
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Taxes 1,020,743$ 1,020,743$ 1,276,438$ 255,695$ Use of money and property 20,000 20,000 10,598 (9,402) Total revenues 1,040,743 1,040,743 1,287,036 246,293 EXPENDITURES:

Current:

Public works 34,103 34,103 33,624 479 Total expenditures 34,103 34,103 33,624 479

EXCESS OF REVENUES OVER
EXPENDITURES 1,006,640 1,006,640 1,253,412 246,772 OTHER FINANCING USES:

Transfers out (3,350,000) (3,350,000) (748,793) 2,601,207 Total other financing uses (3,350,000) (3,350,000) (748,793) 2,601,207 NET CHANGE IN FUND BALANCE (2,343,360)$ (2,343,360)$ 504,619 2,847,979$ FUND BALANCE:

Beginning of year 2,896,402
End of year 3,401,021$
City of Gardena
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Prop C Local Return Special Revenue Fund
For the Year Ended June 30, 2022
129
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Intergovernmental 2,818,386 $ 2,818,386 $ 2,685,713 $ (132,673) $ Use of money and property 22,500 22,500 9,718 (12,782) Total revenues 2,840,886 2,840,886 2,695,431 (145,455) EXPENDITURES:

Current:

General government 14,468 14,468 9,405 5,063 Public works 281,503 281,503 555,718 (274,215) Total expenditures 295,971 295,971 565,123 (269,152)

EXCESS OF REVENUES OVER
EXPENDITURES 2,544,915 2,544,915 2,130,308 (414,607) OTHER FINANCING USES:

Transfers out (3,992,047) (4,042,047) (885,067) 3,156,980 Total other financing uses (3,992,047) (4,042,047) (885,067) 3,156,980 NET CHANGE IN FUND BALANCE (1,447,132)$ (1,497,132) $ 1,245,241 2,742,373 $ FUND BALANCE:

Beginning of year 2,163,609
End of year 3,408,850$
City of Gardena
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Gas Tax Special Revenue Fund
For the Year Ended June 30, 2022
130
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Intergovernmental 447,181$ 447,181$ 317,529$ (129,652)$ Fines, forfeitures, and penalties 75,000 75,000 27,148 (47,852) Use of money and property 1,500 1,500 1,538 38
Total revenues 523,681 523,681 346,215 (177,466) EXPENDITURES:

Current:

General government - - 99,443 (99,443)
Public safety 448,181 448,181 313,705 134,476 Public works - - 1,765 (1,765)
Recreation and human services - - 6,422 (6,422)
Community development - - 12,861 (12,861)
Total expenditures 448,181 448,181 434,196 13,985

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 75,500 75,500 (87,981) (163,481) OTHER FINANCING SOURCES (USES):

Transfers in - - 331,302 331,302
Transfers out (75,500) (75,500) - 75,500 Total other financing (sources) uses (75,500) (75,500) 331,302 406,802 NET CHANGE IN FUND BALANCE -$ -$ 243,321 243,321$
FUND BALANCE:

Beginning of year (415,424)
End of year (172,103)$
City of Gardena
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Public Safety Grants Special Revenue Fund
For the Year Ended June 30, 2022
131
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Taxes 1,683,087 $ 1,683,087 $ 2,119,860 $ 436,773 $ Charges for services - - 43,258 43,258 Intergovernmental 6,182,760 6,182,760 1,120,714 (5,062,046) Use of money and property 18,100 18,100 14,605 (3,495) Miscellaneous - - 324 324 Total revenues 7,883,947 7,883,947 3,298,761 (4,585,186) EXPENDITURES:

Current:

Public works 458,982 427,264 473,972 (46,708) Recreation and human services - - 12,682 (12,682) Capital outlay 77,000 77,000 60,985 16,015 Debt service:

Principal retirement - 26,825 26,825 - Interest and fiscal charges - 4,893 4,893 - Total expenditures 535,982 535,982 579,357 (43,375)

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 7,347,965 7,347,965 2,719,404 (4,628,561) OTHER FINANCING USES:

Transfers in - - 12,772 12,772 Transfers out (9,726,260) (9,676,260) (3,017,261) 6,658,999 Total other financing uses (9,726,260) (9,676,260) (3,004,489) 6,671,771 NET CHANGE IN FUND BALANCE (2,378,295)$ (2,328,295) $ (285,085) 2,043,210 $ FUND BALANCE:

Beginning of year 3,498,048
End of year 3,212,963$
City of Gardena
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Public Works Grants Special Revenue Fund
For the Year Ended June 30, 2022
132
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Intergovernmental 3,307,187$ 3,790,015$ 4,100,185$ 310,170$ Use of money and property 4,000 4,000 1,462 (2,538)
Miscellaneous 93,500 58,500 35,249 (23,251)
Total revenues 3,404,687 3,852,515 4,136,896 284,381 EXPENDITURES:

Current:

Recreation and human services 3,459,724 3,902,809 3,988,295 (85,486) Debt service:

Principal retirement - 4,346 4,346 -
Interest and fiscal charges - 397 397 -
Total expenditures 3,459,724 3,907,552 3,993,038 (85,486)

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (55,037) (55,037) 143,858 198,895 OTHER FINANCING SOURCES:

Transfers in 55,037 75,037 177,852 102,815 Total other financing sources 55,037 75,037 177,852 102,815 NET CHANGE IN FUND BALANCE -$ 20,000$ 321,710 301,710$ FUND BALANCE:

Beginning of year 106,445
End of year 428,155$
City of Gardena
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Human Services Grants Special Revenue Fund
For the Year Ended June 30, 2022
133
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Intergovernmental 628,378 $ 628,378 $ 1,346,667 $ 718,289 $ Use of money and property - - 135 135 Total revenues 628,378 628,378 1,346,802 718,424 EXPENDITURES:

Current:

Community development 628,378 628,378 401,683 226,695 Total expenditures 628,378 628,378 401,683 226,695 NET CHANGE IN FUND BALANCE -$ - $ 945,119 945,119 $ FUND BALANCE:

Beginning of year (869,101)
End of year 76,018$
City of Gardena
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Community Development Block Grant (CDBG) Special Revenue Fund For the Year Ended June 30, 2022
134
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Intergovernmental -$ 7,501,031$ 3,552,584$ (3,948,447)$ Total revenues - 7,501,031 3,552,584 (3,948,447) OTHER FINANCING USES:

Transfers out - (3,552,584) (3,552,584) -
Total other financing uses - (3,552,584) (3,552,584) - NET CHANGE IN FUND BALANCE -$ 3,948,447$ - (3,948,447)$ FUND BALANCE:

Beginning of year -
End of year -$
City of Gardena
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual American Rescue Plan Special Revenue Fund
For the Year Ended June 30, 2022
135
Original Final Variance with
Budget Budget Actual Final Budget
EXPENDITURES:

Capital outlay 21,608,953 $ 23,131,484 $ 7,850,554 $ 15,280,930 $ Total expenditures 21,608,953 23,131,484 7,850,554 15,280,930 OTHER FINANCING SOURCES:

Transfers in 21,608,953 19,631,484 7,850,554 (11,780,930) Total other financing sources 21,608,953 19,631,484 7,850,554 (11,780,930) NET CHANGE IN FUND BALANCE -$ 3,500,000$ - 3,500,000$ FUND BALANCE:

Beginning of year 301,897
End of year 301,897$
City of Gardena
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual City Capital Projects Fund
For the Year Ended June 30, 2022
136
DEBT SERVICE FUNDS:
2021 Lease Revenue Bonds Fund - To account for the accumulated funds for the payment of interest and principal for the lease revenue bonds issued in 2021.
2020 Taxable Pension Obligation Bonds Fund - To account for the accumulated funds for the payment of interest and principal for the pension obligation bonds issued in 2020.
2017 Lease Financing Bonds Fund - To account for the accumulated funds for the payment of interest and principal for the refunding bonds issued in 2017.

CITY DEBT SERVICE FUNDS
To account for the accumulation of resources for, and the payment of, interest and principal on general long-term debt, including certificates of participation and refunding revenue bonds, and capital leases. 2006 Refundin g COPs, Series A Fund - To accoun t for the accumulated funds for the payment of interest and principal fo r the certificates issued in 2006.
2007 Refunding Revenue Bonds SBRPCA Fund - To accoun t for the accumulated funds for the payment of interest and principal for the refunding bonds issued in 2007.
2014 Taxable Lease Revenue Refundin g Bonds Fund - To accoun t for the accumulate d funds fo r the payment of interes t and principal for the refunding bonds issued in 2014.
137
2006 2007 2014 2017
Refunding Refunding Taxable Lease
COPs, Revenue Bonds Lease Revenue Financing
Series A SBRPCA Refunding Bonds Bonds
ASSETS
Cash and investments with fiscal agents 1,775,363 $ 213,672 $ 5 $ - $ Prepaid items and deposits - 1,148 1,102 285,848 Total assets 1,775,363$ 214,820 $ 1,107 $ 285,848 $

LIABILITIES AND

FUND BALANCES
Liabilities:

Due to other funds - $ 34,436$ 1,102 $ 285,848 $ Total liabilities - 34,436 1,102 285,848 Fund Balances:

Nonspendable - 1,148 1,102 - Restricted 1,775,363 179,236 - - Unassigned - - (1,097) - Total fund balances 1,775,363 180,384 5 - Total liabilities and
fund balances 1,775,363$ 214,820 $ 1,107 $ 285,848 $ City of Gardena
Combining Statement of Net Position
All Debt Service Funds
June 30, 2022
138
2020 2021
Taxable Pension Lease
Obligation Obligation
Bonds Bonds Total
ASSETS
Cash and investments with fiscal agents 24$
11,447,465$ 13,436,529$
Prepaid items and deposits 833 - 288,931
Total assets 857$ 11,447,465$ 13,725,460$

LIABILITIES AND

FUND BALANCES
Liabilities:

Due to other funds -$
50,864$
372,250$
Total liabilities - 50,864 372,250
Fund Balances:

Nonspendable 833 - 288,931
Restricted 24 11,396,601 13,065,376
Unassigned - (1,097)
Total fund balances 857 11,396,601 13,353,210
Total liabilities and
fund balances 857$ 11,447,465$ 13,725,460$ City of Gardena
Combining Statement of Net Position (Continued)
All Debt Service Funds
June 30, 2022
139
2006 2007 2014 2017
Refunding Refunding Taxable Lease
COPs, Revenue Bonds Lease Revenue Financing
Series A SBRPCA Refunding Bonds Bonds
REVENUES:

Use of money and property 23,946 $ 61 $ 1 $ - $ Miscellaneous - - - - Total revenues 23,946 61 1 - EXPENDITURES:

Debt service:

Principal retirement 585,000 115,000 65,000 280,000 Interest and fiscal charges 439,939 74,237 443,579 14,594 Total expenditures 1,024,939 189,237 508,579 294,594

REVENUES OVER
(UNDER) EXPENDITURES (1,000,993) (189,176) (508,578) (294,594) OTHER FINANCING SOURCES (USES):

Transfers in 1,022,594 151,983 507,477 294,594 Transfers out - - - - Issuance of debt - - - - Total other financing sources 1,022,594 151,983 507,477 294,594 CHANGES IN FUND BALANCES 21,601 (37,193) (1,101) - NET POSITION:

Beginning of the year 1,753,762 217,577 1,106 - End of the year 1,775,363$ 180,384 $ 5 $ - $ City of Gardena
Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances All Debt Service Funds
For the Year Ended June 30, 2022
140
2020 2021
Taxable Pension Lease
Obligation Revenue
Bonds Bonds Total
REVENUES:

Use of money and property 2,723 $ 4,363 $ 31,094 $ Miscellaneous 4,653,993 - 4,653,993
Total revenues 4,656,716 4,363 4,685,087
EXPENDITURES:

Debt service:

Principal retirement 2,336,998 275,000 3,656,998
Interest and fiscal charges 2,321,361 573,827 3,867,537 Total expenditures 4,658,359 848,827 7,524,535

REVENUES OVER
(UNDER) EXPENDITURES (1,643) (844,464) (2,839,448) OTHER FINANCING SOURCES (USES):

Transfers in 2,500 606,216 2,585,364
Transfers out - (3,617,687) (3,617,687)
Issuance of debt - 15,252,536 15,252,536
Total other financing sources 2,500 12,241,065 14,220,213 CHANGES IN FUND BALANCES 857 11,396,601 11,380,765
NET POSITION:

Beginning of the year - - 1,972,445
End of the yea
r 857$ 11,396,601$ 13,353,210 $
City of Gardena
Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances (Continued) All Debt Service Funds
For the Year Ended June 30, 2022
141
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Use of money and property - $ - $ 23,946$ 23,946 $ Total revenues - - 23,946 23,946 EXPENDITURES:

Debt Service:

Principal retirement 585,000 585,000 585,000 - Interest and fiscal charges 439,939 439,939 439,939 - Total expenditures 1,024,939 1,024,939 1,024,939 -

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (1,024,939) (1,024,939) (1,000,993) 23,946 OTHER FINANCING SOURCES:

Transfers in 1,024,939 1,024,939 1,022,594 (2,345) Total other financing sources 1,024,939 1,024,939 1,022,594 (2,345) NET CHANGE IN FUND BALANCE -$ - $ 21,601 21,601 $ FUND BALANCE:

Beginning of year 1,753,762
End of year 1,775,363$
City of Gardena
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual 2006 Refunding COPs, Series A Debt Service Fund
For the Year Ended June 30, 2022
142
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Use of money and property -$ -$ 61$ 61$
Total revenues - - 61 61
EXPENDITURES:

Debt Service:

Principal retirement 115,000 115,000 115,000 - Interest and fiscal charges 74,325 74,325 74,237 88
Total expenditures 189,325 189,325 189,237 88

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (189,325) (189,325) (189,176) 149 OTHER FINANCING SOURCES:

Transfers in 189,325 189,325 151,983 (37,342) Total other financing sources 189,325 189,325 151,983 (37,342) NET CHANGE IN FUND BALANCE -$ -$ (37,193) (37,193)$
FUND BALANCE:

Beginning of year 217,577
End of year 180,384$
City of Gardena
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual 2007 Refunding Revenue Bonds SBRPCA Debt Service Fund
For the Year Ended June 30, 2022
143
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

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

Debt Service:

Principal retirement 65,000 65,000 65,000 - Interest and fiscal charges 443,579 443,579 443,579 - Total expenditures 508,579 508,579 508,579 -

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (508,579) (508,579) (508,578) 1 OTHER FINANCING SOURCES:

Transfers in 508,579 508,579 507,477 (1,102) Total other financing sources 508,579 508,579 507,477 (1,102) NET CHANGE IN FUND BALANCE -$ - $ (1,101) (1,101) $ FUND BALANCE:

Beginning of year 1,106
End of year 5$
City of Gardena
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual 2014 Taxable Lease Revenue Refunding Bonds Debt Service Fund For the Year Ended June 30, 2022
144
Original Final Variance with
Budget Budget Actual Final Budget
EXPENDITURES:

Debt Service:

Principal retirement 280,000$ 280,000$ 280,000$ -$ Interest and fiscal charges 14,594 14,594 14,594 -
Total expenditures 294,594 294,594 294,594 - OTHER FINANCING SOURCES:

Transfers in 294,594 294,594 294,594 - Total other financing sources 294,594 294,594 294,594 - NET CHANGE IN FUND BALANCE -$ -$ - -$
FUND BALANCE:

Beginning of year -
End of year -$
City of Gardena
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual 2017 Lease Financing Bonds - Debt Service Fund
For the Year Ended June 30, 2022
145
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Use of money and property 3,635 $ 3,635 $ 2,723 $ (912) $ Intra governmental reimbursements 4,671,983 4,671,983 4,653,993 (17,990) Total revenues 4,675,618 4,675,618 4,656,716 (18,902) EXPENDITURES:

Debt Service:

Principal retirement 2,354,807 2,354,257 2,336,998 17,259 Interest and fiscal charges 2,320,811 2,321,361 2,321,361 - Total expenditures 4,675,618 4,675,618 4,658,359 17,259

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES - - (1,643) (1,643) OTHER FINANCING SOURCES:

Transfers in - - 2,500 2,500 Total other financing sources - - 2,500 2,500 NET CHANGE IN FUND BALANCE -$ - $ 857 857 $ FUND BALANCE:

Beginning of year -
End of year 857$
City of Gardena
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual 2020 Taxable Pension Obligation Bonds Debt Service Fund For the Year Ended June 30, 2022
146
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Use of money and property -$ -$ 4,363$ 4,363$
Total revenues - - 4,363 4,363
EXPENDITURES:

Debt Service:

Principal retirement - 275,000 275,000 - Interest and fiscal charges - 331,216 573,827 (242,611) Total expenditures - 606,216 848,827 (242,611)

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES - (606,216) (844,464) (238,248) OTHER FINANCING SOURCES:

Transfers in - 606,216 606,216 -
Transfers out - (1,227,625) (3,617,687) (2,390,062) Issuance of debt - - 15,252,536 15,252,536
Total other financing sources - (621,409) 12,241,065 12,862,474 NET CHANGE IN FUND BALANCE -$ (1,227,625)$ 11,396,601 12,624,226$ FUND BALANCE:

Beginning of year -
End of year 11,396,601$
City of Gardena
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual 2021 Lease Revenue Bonds
For the Year Ended June 30, 2022
147
148
City of Gardena
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
(This page is intentionally left blank)
Liability Insurance Fund - To finance and account for the City's general liability claims program.

Workers' Compensation Fund - To finance and account for the workers' compensation claims program.

Health Benefit Fund - To finance and account for the health benefit claims program.

INTERNAL SERVICE FUNDS
The Internal Service Fund accounts for financing of goods and services provided by one department to other departments of the City on a cost-reimbursement basis.

Internal Service Funds include:
149
150
City of Gardena
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
(This page is intentionally left blank)
Liability Workers' Health
Insurance Compensation Benefit Total
ASSETS
Current Assets:

Cash and investments 2,731,211$ 2,422,587$ 5,031,439$ 10,185,237$ Accounts receivables 5,735 200,000 - 205,735 Prepaid items and deposits 310 2,146 - 2,456
Total current assets 2,737,256 2,624,733 5,031,439 10,393,428 Total assets 2,737,256 2,624,733 5,031,439 10,393,428

LIABILITIES
Current liabilities:

Accounts payable 245,927 6,861 - 252,788
Accrued liabilities 501,452 14,847 128,114 644,413 Claims payable - due within one year 821,695 10,991,715 663,854 12,477,264 Total current liabilities 1,569,074 11,013,423 791,968 13,374,465 Noncurrent liabilities:

Claims payable - due in more than one year 2,128,018 2,198,343 - 4,326,361 Total noncurrent liabilities 2,128,018 2,198,343 - 4,326,361 Total liabilities 3,697,092 13,211,766 791,968 17,700,826

NET POSITION
Unrestricted (deficit) (959,836) (10,587,033) 4,239,471 (7,307,398) Total net position (959,836)$ (10,587,033) $ 4,239,471 $ (7,307,398) $ City of Gardena
Combining Statement of Net Position
Internal Service Funds
June 30, 2022
151
Liability Workers' Health
Insurance Compensation Benefit Total
OPERATING REVENUES:

Charges for services 1,050,303 $ 1,000,769 $ 8,861,950 $ 10,913,022 $ Other 12,020 345,990 545,749 903,759 Total operating revenues 1,062,323 1,346,759 9,407,699 11,816,781 OPERATING EXPENSES:

Insurance claims 5,178,113 6,260,687 2,672,921 14,111,721 General and administrative 768,610 465,943 4,795,081 6,029,634 Other operating expenses 34,313 34,701 104,162 173,176 Total operating expenses 5,981,036 6,761,331 7,572,164 20,314,531 OPERATING INCOME (LOSS) (4,918,713) (5,414,572) 1,835,535 (8,497,750) NONOPERATING REVENUES:

Interest income 141 3,183 23,188 26,512 Total nonoperating revenues 141 3,183 23,188 26,512 INCOME (LOSS) BEFORE TRANSFERS (4,918,572) (5,411,389) 1,858,723 (8,471,238) TRANSFERS:

Transfers in 4,504,982 2,100,000 - 6,604,982 Transfers out - - (1,604,982) (1,604,982) Total transfers 4,504,982 2,100,000 (1,604,982) 5,000,000 CHANGES IN NET POSITION (413,590) (3,311,389) 253,741 (3,471,238) NET POSITION:

Beginning of year (546,246) (7,275,644) 3,985,730 (3,836,160) End of year (959,836) $ (10,587,033) $ 4,239,471 $ (7,307,398) $ City of Gardena
Combining Statement of Revenues, Expenses, and Changes in Net Position Internal Service Funds
For the Year Ended June 30, 2022
152
Liability Workers' Health
Insurance Compensation Benefit Total
CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from users 1,049,723$ 800,769$ 8,863,432$ 10,713,924$ Receipts from claims recoveries 12,020 345,990 545,749 903,759 Payments for insurance claims (3,481,300) (1,736,215) (2,695,055) (7,912,570) Payments to suppliers (512,160) (493,151) (4,412,933) (5,418,244) Net cash provided by (used in) operating activities (2,931,717) (1,082,607) 2,301,193 (1,713,131)

CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:

Transfers from other funds 4,504,982 2,100,000 - 6,604,982 Transfers to other funds - - (1,604,982) (1,604,982) Net cash provided by (used in)
noncapital financing activities 4,504,982 2,100,000 (1,604,982) 5,000,000 CASH FLOWS FROM INVESTING ACTIVITIES:

Interest received 141 3,183 23,188 26,512 Net cash provided by investing activities 141 3,183 23,188 26,512 Net change in cash and cash equivalents 1,573,406 1,020,576 719,399 3,313,381 CASH AND CASH EQUIVALENTS:

Beginning of year 1,157,805 1,402,011 4,312,040 6,871,856 End of year 2,731,211$ 2,422,587$ 5,031,439$ 10,185,237$

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

Operating income (loss) (4,918,713)$ (5,414,572)$ 1,835,535$ (8,497,750)$ Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:
(Increase)decrease in accounts receivable (580) (200,000) 1,482 (199,098) (Increase)decrease in prepaid items and deposits - - 376,540 376,540 Increase (decrease) in accounts payable 12,819
6,861 (1,824) 17,856
Increase (decrease) in accrued liabilities 277,944 632 127,289 405,865 Increase (decrease) in deposits payable - - (15,695) (15,695) Increase (decrease) in claims payable 1,696,813 4,524,472 (22,134) 6,199,151 Total adjustment 1,986,996 4,331,965 465,658 6,784,619 Net cash provided by (used in) operating activities (2,931,717)$ (1,082,607) $ 2,301,193 $ (1,713,131) $ City of Gardena
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2022
153
154
City of Gardena
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
(This page is intentionally left blank)

STATISTICAL SECTION
Fiscal Year 2021-22
155

STATISTICAL SECTION
Fiscal Year 2021-22
(This page is intentionally left blank)
156
Page
Financial Trends - These tables contain trend information that may assist the reader in the City's current financial performance by placing it in historical perspective.
- Net
Position by Component 158
- C
hanges in Net Position 160
- Fund B
alances of Governmental Funds 164
- Cha
nges in Fund Balances - Governmental Funds 166
Revenue Capacity - These tables contain information that may help in assessing the viability of the City's most significant revenue sources, the property and sales taxes. - Gov
ernmental Revenues by Sources 168
- Gener
al Governmental Expenditures by Function 170
- As
sessed Valuation and Actual Value of Taxable Property 172 - As
sessed Value of Property by User Code 174
- As
sessed Value and Estimated Value of Taxable Property 176 - Cons
truction and Bank Deposits 178
- Pro
perty Tax Rates - All Overlapping Governments 180
- Di
rect and Overlapping Property Tax Rates 182
- Ten La
rgest Property Taxpayers 184
- Top
25 Sales Tax Producers 185
- P
roperty Tax Levies, Tax Collections, and Delinquency 186 - Ca
rd Club Gross Revenue Fee 187
- U
tility Users Tax Received 188
- Ta
xable Sales by Category 189
Debt Capacity - These tables present information that may assist the reader in analyzing the affordability of the City's current levels of outstanding debt and the City's ability to issue debt in the future. - R
atio of Outstanding Debt by Type 190
- P
ledged - Revenue Coverage 193
- Ra
tio of General Bonded Debt Outstanding 194
- Di
rect and Overlapping Bonded Debt 195
- L
egal Debt Margin Information 196
- Deb
t Service Payment Schedule 198
Demographic and Economic Information - These tables offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place. - Dem
ographic and Economic Statistics 201
- T
en Principal Employers 202
- Unem
ployement Rates 203
Operating Information - These tables contain service and infrastructure indicators that can inform one's understanding how the information in the City's financial statements relate to the services the City provides and the activities it performs.
- F
ull-Time and Part-Time City Employees by Function 204
- Em
ployee Union Representation 205
- Op
erating Indicators 206
- C
apital Asset Statistics by Function 207

CONTENTS

CITY OF GARDENA

STATISTICAL SECTION
Fiscal Year 2021-22
This part of the City of Gardena's annual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information say about the government's overall financial health.
157
2021-22 2020-21 2019-20 2018-19 2017-18(2)
Governmental Activities
Net Investment in Capital Assets $40,126,502 $28,550,313 $30,055,713 $47,404,733 $27,748,135 Restricted for:

Debt Service 1,617,913 1,681,507 1,708,162 1,669,313 1,916,945 Employment and Training Services - - - - 5,287 Law Enforcement 1,459,666 1,593,265 1,080,052 1,344,114 921,976 Local Street Improvements 10,385,580 9,329,940 7,956,523 7,130,678 6,060,770 Economic Development 6,914,470 5,783,794 4,393,701 5,306,507 6,006,024 Capital Projects 273,887 273,887 273,887 295,912 571,089 Other Purposes 1,014,200 662,807 689,290 657,424 633,275 Specific Projects and Programs - - - - - Total Restricted: 21,665,716 19,325,200 16,101,615 16,403,948 16,115,366 Unrestricted
(2) (95,499,040) (114,185,399) (126,640,099) (131,787,090) (107,886,487) Total governmental activities net position ($33,706,822) ($66,309,886) ($80,482,771) ($67,978,409) ($64,022,986) Business-type Activities
Net Investment in Capital Assets $59,701,427 $60,014,796 $50,474,813 $53,054,448 $56,261,253 Unrestricted(2) (33,216,568) (34,052,901) (32,350,671) (29,646,082) (27,969,730) Total business-type activities net position $26,484,859 $25,961,895 $18,124,142 $23,408,366 $28,291,523 Primary Government
Net Investment in Capital Assets $99,827,929 $88,565,109 $80,530,526 $100,459,181 $84,009,388 Restricted 21,665,716 19,325,200 16,101,615 16,403,948 16,115,366 Unrestricte
d(2) (128,715,608) (148,238,300) (158,990,770) (161,433,172) (135,817,893) Total Primary Government Net Position: ($7,221,963) ($40,347,991) ($62,358,629) ($44,570,043) ($35,693,139) NOTE: (1)
Accounting standards require that net position be reported in three components in the financial statements: net investment in capital assets, restricted, and unrestricted. Net position are considered restricted only when (1) an external party, such as the State of California or the federal government, places a restriction on how the revenues may be used, or (2) enabling legislation is enacted by the City.
(2) 2017 balances were restated due to implementation of GASB 75 Fiscal Year
City of Gardena
Net Position by Component (1)
Last Ten Fiscal Years Ended June 30, 2022
(accrual basis of accounting)
Source: City of Gardena, Administrative Services Department - Finance Division 158
2016-17 2015-16 2014-15 2013-14 2012-13
Governmental Activities
Net Investment in Capital Assets $28,138,906 $27,897,717 $26,430,711 $21,675,303 $22,478,931 Restricted for:

Debt Service 1,924,432 2,679,363 2,965,697 3,471,506 3,458,249 Employment and Training Services 43,611 164,116 300,190 397,593 537,583 Law Enforcement 914,062 1,251,314 1,701,810 2,186,672 2,203,648 Local Street Improvements 6,205,701 7,072,378 7,930,518 7,049,906 6,020,275 Local Street Improvements 1,986,202 2,394,395 2,292,714 - - Economic Development 295,912 301,546 - - 2,679,485 Other Purposes 651,830 289,859 447,605 478,453 389,852 Specific Projects and Programs - - - - -
Total Restricted: 12,021,750 14,152,971 15,638,534 13,584,130 15,289,092 Unrestricted (99,400,392) (60,913,888) (67,531,463) (64,355,607) (3,568,866) Total governmental activities net position ($59,239,736) ($18,863,200) ($25,462,218) ($29,096,174) $34,199,157 Business-type Activities
Net Investment in Capital Assets $60,150,166 $62,151,750 $67,684,810 $70,809,060 $75,906,094 Unrestricted (27,390,162) (21,068,543) (18,107,410) (15,654,544) (1,617,195) Total business-type activities net position $32,760,004 $41,083,207 $49,577,400 $55,154,516 $74,288,899 Primary Government
Net Investment in Capital Assets $88,289,072 $90,049,467 $94,115,521 $92,484,363 $98,385,025 Restricted 12,021,750 14,152,971 15,638,534 13,584,130 15,289,092 Unrestricte
d (126,790,554) (81,982,431) (85,638,873) (79,990,151) (5,186,061) Total Primary Government Net Position: ($26,479,732) $22,220,007 $24,115,182 $26,078,342 $108,488,056 NOTE: (1)
Accounting standards require that net position be reported in three components in the financial statements: net investment in capital assets, restricted, and unrestricted. Net position are considered restricted only when (1) an external party, such as the State of California or the federal government, places a restriction on how the revenues may be used, or (2) enabling legislation is enacted by the City.

Fiscal Year
City of Gardena
Net Position by Component (Continued) (1)
Last Ten Fiscal Years Ended June 30, 2022
(accrual basis of accounting)
Source: City of Gardena, Administrative Services Department - Finance Division 159
2021-22 2020-21 2019-20 2018-19 2017-18
Expenses
Governmental Activities
General Government 7,771,663 $ 7,807,099 $ 7,383,173 $ 8,609,254 $ 6,177,468 $ Public Safety 27,964,662 47,363,640 47,760,821 43,617,238 41,420,762 Public Works 11,239,762 8,516,393 10,958,845 11,717,321 7,120,106 Recreation and Human Services 7,566,226 6,766,739 6,600,989 6,395,004 9,742,993 Community Development 5,946,949 2,986,934 2,692,644 2,662,554 2,938,656 Interest and fiscal charges 3,888,463 2,532,013 1,156,041 1,191,118 1,241,054 Total governmental activities expenses: 64,377,725 75,972,818 76,552,513 74,192,489 68,641,039 Business-type Activities
GTrans 27,966,497 29,535,221 31,024,629 28,646,739 27,804,739 Sewer 1,423,680 1,190,734 1,651,788 1,512,189 1,432,695 Total business-type activities expenses: 29,390,177 30,725,955 32,676,417 30,158,928 29,237,434 Total primary government expenses: 93,767,902 106,698,773 109,228,930 104,351,417 97,878,473 Program Revenues
Governmental Activities
Charges for services:

General Government 8,769,328 5,333,187 4,072,004 4,107,289 3,864,795 Public Safety 1,236,057 1,240,360 1,338,121 1,862,764 1,312,945 Public Works 534,045 378,834 351,732 351,463 418,667 Recreation and Human Services 3,647,094 2,750,536 3,801,562 2,962,339 2,685,240 Community Development 3,139,836 2,499,553 2,246,297 1,687,652 1,724,501

Interest and fiscal charges - - - - - Operating Grants and Contributions 4,081,043 14,663,306 3,351,864 3,142,207 3,719,048 Capital Grants and Contributions 2,511,878 3,017,989 1,621,611 2,037,030 2,002,799 Total governmental activities program revenues: 23,919,281 29,883,765 16,783,191 16,150,744 15,727,995 Business-type Activities
Charges for services:

GTrans 1,643,970 135,875 1,766,952 2,382,758 2,459,105 Sewer 2,610,910 2,685,365 2,323,753 2,016,346 1,790,296 Operating Grants and Contributions 22,018,364 20,725,314 21,277,188 20,612,788 19,855,368 Capital Grants and Contributions 3,915,704 14,856,026 1,962,998 1,086,741 576,031 Total business-type activities program revenues: 30,188,948 38,402,580 27,330,891 26,098,633 24,680,800 Total primary government revenues: 54,108,229 $ 68,286,345 $ 44,114,082 $ 42,249,377 $ 40,408,795 $ Fiscal Year
City of Gardena
Changes in Net Position
Last Ten Fiscal Years Ended June 30, 2022
(accrual basis of accounting)
Source: City of Gardena, Administrative Services Department - Finance Division 160
2016-17 2015-16 2014-15 2013-14 2012-13
Expenses
Governmental Activities
General Government 5,848,247 $ 5,730,664 $ 6,239,825 $ 11,808,280 $ 11,534,998 $ Public Safety 38,700,824 36,304,203 35,912,110 32,551,301 31,266,838 Public Works 6,956,766 8,545,467 9,846,657 10,300,134 8,904,024 Recreation and Human Services 9,154,921 6,777,838 6,677,536 6,147,992 6,424,691 Community Development 2,796,216 2,538,835 2,675,341 7,470,002 2,153,815 Interest and fiscal charges 1,382,078 1,365,398 1,805,649 1,466,193 1,564,640 Total governmental activities expenses: 64,839,052 61,262,405 63,157,118 69,743,902 61,849,006 Business-type Activities
GTrans 28,195,640 26,410,211 26,643,082 23,188,943 23,375,194 Sewer 1,760,303
1,046,864 1,021,131 849,779 862,965 Total business-type activities expenses: 29,955,943 27,457,075 27,664,213 24,038,722 24,238,159 Total primary government expenses: 94,794,995 88,719,480 90,821,331 93,782,624 86,087,165 Program Revenues
Governmental Activities
Charges for services:

General Government 3,504,735 3,298,306 3,022,929 3,013,410 3,012,767 Public Safety 1,422,001 1,174,116 1,337,761 1,404,006 1,405,062 Public Works 615,289 513,495 340,541 384,600 291,644 Recreation and Human Services 2,979,625 2,315,212 2,238,445 2,092,788 1,998,540 Community Development 1,771,754 2,187,082 1,432,560 2,922,090 851,981 Interest and fiscal charges
- - - - -
Operating Grants and Contributions 2,048,938 2,067,123 2,963,405 7,092,380 5,084,561 Capital Grants and Contributions 1,268,576 1,918,489 7,167,801 3,531,787 1,602,081 Total governmental activities program revenues: 13,610,918 13,473,823 18,503,442 20,441,061 14,246,636 Business-type Activities
Charges for services:

GTrans 2,482,516 2,685,573 3,346,233 3,434,257 3,410,708 Sewer 954,552
673,199 727,054 922,304 732,421 Operating Grants and Contributions 17,462,145 16,905,476 17,353,740 15,518,103 16,005,906 Capital Grants and Contributions 3,120,351 1,850,968 832,350 1,470,222 740,916 Total business-type activities program revenues: 24,019,564 22,115,216 22,259,377 21,344,886 20,889,951 Total primary government revenues: 37,630,482$ 35,589,039$ 40,762,819$ 41,785,947$ 35,136,587$ Fiscal Year
Changes in Net Position (Continued)
Last Ten Fiscal Years Ended June 30, 2022
(accrual basis of accounting)
City of Gardena
Source: City of Gardena, Administrative Services Department - Finance Division 161
2021-22 2020-21 2019-20 2018-19 2017-18
Net (expense)/revenue: (1)
Governmental activities (40,458,444) $ (46,089,053) $ (59,769,322) $ (58,041,745) $ (52,913,044) $ Business-type activities 798,771 7,676,625 (5,345,526) (4,060,295) (4,556,634) Total net revenues (expenses): (39,659,673) (38,412,428) (65,114,848) (62,102,040) (57,469,678) General Revenue and Other Changes in Net Position
Governmental activities
Taxes:

Property taxes 9,186,838 8,799,364 8,205,539 7,735,545 7,150,957 Sales tax 27,908,699 23,760,125 12,440,147 13,466,178 11,006,901 Business license 2,647,094 2,508,287 2,438,304 2,843,375 2,727,532 Utility user taxes 5,481,395 4,970,799 4,801,229 4,955,645 5,088,450 Franchise taxes 3,075,659 2,809,101 2,816,277 2,777,572 2,609,219 Card club taxes 10,544,947 3,999,147 4,874,457 8,101,583 8,071,001 Other taxes 4,626,009 3,764,716 3,920,393 4,354,725 3,985,315 Vehicle license - unrestricted 7,485,678 7,203,563 6,788,130 6,378,321 5,994,920 Investment income (loss) (1,520,476) (57,164) 1,036,057 1,061,732 158,902 Miscellaneous 3,281,484 2,730,183 690,353 1,384,272 1,134,729 Gain on sale of assets - (190,979) (863,795) 10,622 201,560 Transfers 344,181 (35,204) 117,869 978,428 38,632 Total governmental activities 73,061,508 60,261,938 47,264,960 54,047,998 48,168,118 Business-type activities
Investment income 68,374 125,924 162,760 155,566 124,243 Miscellaneous - - - - 2,542 Gain (loss) on sale of assets - - 16,411 - - Transfers (344,181) 35,204 (117,869) (978,428) (38,632) Total business-type activities: (275,807) 161,128 61,302 (822,862) 88,153 Total primary government: 72,785,701 60,423,066 47,326,262 53,225,136 48,256,271 Change in Net Position
Governmental activities 32,603,064 14,172,885 (12,504,362) (3,993,747) (4,744,926) Business-type activities 522,964 7,837,753 (5,284,224) (4,883,157) (4,468,481) Total primary government: 33,126,028 $ 22,010,638 $ (17,788,586) $ (8,876,904) $ (9,213,407) $ (1) Net (expense)/revenue is the difference between the expenses and program revenues of a function or program. It indicates the degree to which a function or program is supported with its own fees and program specific grants versus its reliance upon funding from taxes and other general revenues.
-A number in parentheses are net expenses, indicating that expenses were greater than program revenues and therefore, general revenues were needed to finance that function or program. -Numbers without parentheses are net revenues, meaning that program revenues were more than sufficient to cover expenses.

Fiscal Year
Changes in Net Position (Continued)
Last Ten Fiscal Years Ended June 30, 2022
(accrual basis of accounting)
City of Gardena
Source: City of Gardena, Administrative Services Department - Finance Division 162
2016-17 2015-16 2014-15 2013-14 2012-13
Net (expense)/revenue: (1)
Governmental activities (51,228,234)$ (47,788,582)$ (44,653,676)$ (49,302,841)$ (47,602,370)$ Business-type activities (5,936,379) (5,341,859) (5,404,836) (2,693,836) (3,348,208) Total net revenues (expenses): (57,164,613) (53,130,441) (50,058,512) (51,996,677) (50,950,578) General Revenue and Other Changes in Net Position
Governmental activities
Taxes:

Property taxes 7,130,426 6,729,849 6,402,520 6,192,249 5,924,450 Sales tax 11,204,697 11,227,326 9,965,476 9,472,341 9,093,802 Business license 2,606,279 2,536,438 2,547,148 2,218,097 2,224,694 Utility user taxes 5,147,736 5,212,410 5,335,375 5,383,285 5,224,829 Franchise taxes 2,440,108 2,534,820 2,417,342 2,351,576 2,311,421 Card club taxes 8,975,991 9,057,202 9,517,550 9,467,078 8,394,406 Other taxes 3,855,705 3,479,372 3,136,222 2,965,176 2,773,929 Vehicle license - unrestricted 5,677,909 5,445,385 5,166,984 4,958,745 4,792,063 Investment income (loss) 129,187 499,279 248,773 270,187 163,025 Miscellaneous 2,261,772 2,566,919 3,329,396 2,643,424 2,419,479 Gain on sale of assets 883,201 1,877,151 - - - Transfers 9,898 3,221,449 200,846 408,925 1,397,691 Total governmental activities 50,322,909 54,387,600 48,267,632 46,331,083 44,719,789 Business-type activities
Investment income 77,618 55,492 24,196 11,333 33,606 Miscellaneous 18,512 13,623 4,370 2,733 (45,366)
Gain (loss) on sale of assets - - - (2,600,806) - Transfers (9,898) (3,221,449) (200,846) (408,925) (1,397,691) Total business-type activities: 86,232 (3,152,334) (172,280) (2,995,665) (1,409,451) Total primary government: 50,409,141 51,235,266 48,095,352 43,335,418 43,310,338 Change in Net Position
Governmental activities (905,325) 6,599,018 3,613,956 (2,971,758) (2,882,581) Business-type activities (5,850,147) (8,494,193) (5,577,116) (5,689,501) (4,757,659) Total primary government: (6,755,472)$ (1,895,175)$ (1,963,160)$ (8,661,259)$ (7,640,240)$ (1) Net (expense)/revenue is the difference between the expenses and program revenues of a function or program. It indicates the degree to which a function or program is supported with its own fees and program specific grants versus its reliance upon funding from taxes and other general revenues.
-A number in parentheses are net expenses, indicating that expenses were greater than program revenues and therefore, general revenues were needed to finance that function or program. -Numbers without parentheses are net revenues, meaning that program revenues were more than sufficient to cover expenses.

Fiscal Year
City of Gardena
Changes in Net Position (Continued)
Last Ten Fiscal Years Ended June 30, 2022
(accrual basis of accounting)
Source: City of Gardena, Administrative Services Department - Finance Division 163
2021-22 2020-21 2019-20 2018-19 2017-18
General Fund
Nonspendable (1) 352,425$ 1,214,022 $ 302,361 $ 333,803 $ 385,931 $ Restricted (1) - - - - 5,287 Committed (1) 26,936,620 18,697,703 7,310,676 13,287,448 19,315,675 Assigned (1) 14,236,728 8,670,503 2,848,416 2,622,256 3,609,547 Unassigned (1) 300,001 200,000 173,122 271,377 200,000 Total General Fund: $41,825,774 $28,782,228 $10,634,575 $16,514,884 $23,516,440 All Other Governmental Funds
Nonspendable (1) 329,979$ 342,428 $ 350,432 $ 308,741 $ 16,769,655 $ Restricted (1) 31,699,951 16,660,769 15,682,481 16,089,466 - Committed (1) - - - - - Assigned (1) - - - - - Unassigned (1) (185,700) (1,298,092) (81,218) - - Total all other governmental funds: $31,844,230 $15,705,105 $15, 951,695 $16,398,207 $16,769,655 NOTES:
(1) New reporting requirements per GASB 54.

Source: City of Gardena, Administrative Services Department - Finance Division Fiscal Year
City of Gardena
Fund Balances of Governmental Funds
Last Ten Fiscal Years Ended June 30, 2022
(modified accrual basis of accounting)
General Fund

56.77%
All Other
Governmental
Funds

49.82%
Fund Balances
Fiscal Year Ended June 30, 2022
164
2016-17 2015-16 2014-15 2013-14 2012-13
General Fund
Nonspendable (1) 294,133$ 189,819 $ 179,244 $ 181,457 $ 198,145 $ Restricted (1) 43,611 164,116 327,752 57,980 56,014
Committed (1) 19,413,135 17,542,367 7,274,423 7,274,423 6,825,301 Assigned (1) 3,936,266 2,773,686 7,579,856 4,357,472 2,906,950 Unassigned (1) 200,000 200,000 400,362 238,582 274,236 Total General Fund: $23,887,145 $20,869,988 $15,761,637 $12,109,914 $10,260,646 All Other Governmental Funds
Nonspendable (1) -$ -$ 4,734$ -$ 8,990$
Restricted (1) 10,073,376 11,726,127 13,048,054 13,526,150 15,233,078 Committed (1) 3,765,323 3,776,154 3,051,323 2,658,379 - Assigned (1) - (20,809) 179,079 377,900 654,243
Assigned (1) - - - - -
Total all other governmental funds: $13,838,699 $15,481,472 $16,283,190 $16,562,429 $15,896,311 NOTES:
(1) New reporting requirements per GASB 54.

Source: City of Gardena, Administrative Services Department - Finance Division Fiscal Year
City of Gardena
Fund Balances of Governmental Funds (Continued)
Last Ten Fiscal Years Ended June 30, 2022
(modified accrual basis of accounting)

15.90 16.56

16.28 15.48

13.84 16.77

16.40 15.95

15.71 35.80
0 5
10 15
20 25
30 35
40 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 (in Millions)
Fiscal Year
Fund Balances
All Other Governmental Funds
Last Ten Fiscal Years
165
2021-22 2020-21(2)
2019-20 2018-19 2017-18
Revenues:

Taxes $70,663,462 $57,968,745 $46,128,710 $50,827,680 $47,527,518 Licenses and permits 2,900,062 2,389,538 1,646,059 1,735,711 1,694,670 Use of money and property (1,517,780) (56,416) 1,036,059 1,061,734 158,902 Intergovernmental 13,689,853 16,142,006 7,157,208 7,409,245 6,201,645 Fines, forfeitures, and penalties 3,660,686 3,168,468 1,112,890 2,261,549 1,124,079 Charges for services 5,448,044 5,188,250 6,142,402 5,270,787 5,070,020 Miscellaneous 5,245,065 1,664,391 831,773 892,283 1,197,011 Total Revenues: 100,089,392 86,464,982 64,055,101 69,458,989 62,973,845 Expenditures:

Current:

General government 5,296,661 5,325,270 6,576,421 6,004,196 5,025,047 Public safety 41,545,473 37,558,085 41,295,066 45,783,773 37,851,314 Public works 7,868,811 6,776,073 8,372,502 8,058,427 4,012,134 Recreation and Human resources 7,318,062 6,232,436 6,155,882 6,138,238 9,194,054 Community development 3,061,632 2,789,072 2,474,928 2,382,263 2,734,299 Capital outlay 8,929,107 5,199,699 3,636,782 6,127,264 3,794,206 Debt service:

Principal 3,850,985 1,173,158 967,696 902,804 627,898
Interest and fiscal charges 3,899,642 2,340,735 1,155,814 1,198,262 1,227,659 Total Expenditures: 81,770,373 67,394,528 70,635,091 76,595,227 64,466,611 Excess of Revenues over (under) Expenditures 18,319,019 19,070,454 (6,579,990) (7,136,238) (1,492,766) Other Financing Sources (Uses):

Proceeds of long-term debt - - - - - Proceeds from sale of assets 127,623 3,492 46,241 16,413 423,735 Proceeds from debt issuance 15,391,848 79,193,585 - - - Issuance of capital leases - - - - - Contribution to pension trust - (78,731,264) - - - Issuance of new debt - - - - - Issuance discount - - - - - Issuance of loans - - 86,223 86,223 86,223 Transfers in 16,400,118 12,724,862 7,476,706 9,013,583 6,747,282 Transfers out (21,055,937) (14,360,066) (7,356,001) (8,350,155) (6,708,650) Total Other Financing Sources (Uses): 10,863,652 (1,169,391) 253,169 766,064 548,590 Net change in fund balances $29,182,671 $17,901,063 ($6,326,821) ($6,370,174) ($944,176) Debt service as a percentage of
noncapital expenditures:
(1) 9.66% 5.21% 3.14% 2.87% 3.03%
NOTE:
(1) Ratio is calculated by dividing total debt service expenditures by total non-capital expenditures (difference between total expenditures and capitalized capital outlay expenditures) (2) 2021 cost of bond issuance was reclassified into interest and fiscal charges from other financing uses.

Source: City of Gardena, Administrative Services Department - Finance Division Fiscal Year
City of Gardena
(modified accrual basis of accounting)
Last Ten Fiscal Years Ended June 30, 2022
Changes In Fund Balances - Governmental Funds
166
2016-17 2015-16 2014-15 2013-14 2012-13
Revenues:

Taxes $46,847,209 $46,222,802 $44,488,617 $43,008,547 $40,739,594 Licenses and permits 1,800,752 1,521,379 1,109,169 1,023,180 915,614 Use of money and property 129,186 499,278 248,773 270,187 163,025 Intergovernmental 5,549,872 5,705,627 11,575,383 11,983,118 7,917,316 Fines, forfeitures, and penalties 1,102,235 1,794,049 1,433,758 1,226,243 1,629,217 Charges for services 5,155,573 4,545,874 4,208,616 4,146,210 4,087,263 Miscellaneous 2,944,050 1,807,155 3,141,148 2,754,989 2,116,705 Total Revenues: 63,528,877 62,096,164 66,205,464 64,412,474 57,568,734 Expenditures:

Current:

General government 4,914,416 4,886,467 5,108,064 4,938,101 6,256,927 Public safety 36,977,198 34,674,068 32,542,544 32,069,172 30,007,184 Public works 4,064,485 5,584,816 5,352,388 5,395,817 5,145,179 Recreation and Human resources 8,631,034 6,498,830 6,135,402 6,086,777 6,161,518 Community development 2,757,861 2,533,734 2,594,007 7,499,226 2,119,111 Capital outlay 3,349,481 8,332,649 8,064,783 6,075,302 5,806,502 Debt service:

Principal 2,703,105 754,158 9,228,535 844,172 645,065
Interest and fiscal charges 1,431,641 1,369,936 2,029,383 1,482,716 1,518,953 Total Expenditures: 64,829,221 64,634,658 71,055,106 64,391,283 57,660,439 Excess of Revenues over (under) Expenditures (1,300,344) (2,538,494) (4,849,642) 21,191 (91,705) Other Financing Sources (Uses):

Proceeds of long-term debt - - - 2,521,577 - Proceeds from sale of property 1,024,538 4,990,156 - - - Proceeds from debt issuance - - - - -
Issuance of capital leases - - - 201,829 - Contribution to pension trust - - - - -
Issuance of new debt 1,635,000 - 9,110,000 - - Issuance discount - - (297,460) - -
Issuance of loans 86,223 311,026 408,740 - - Transfers in 6,487,933 11,143,623 10,368,953 7,765,591 7,379,793 Transfers out (6,558,966) (9,599,678) (11,368,107) (7,994,802) (6,382,102) Total Other Financing Sources (Uses): 2,674,728 6,845,127 8,222,126 2,494,195 997,691 Net change in fund balances $1,374,384 $4,306,633 $3,372,484 $2,515,386 $905,986 Debt service as a percentage of
noncapital expenditures:
(1) 6.64% 3.51% 17.16% 3.81% 4.00%
NOTE:
(1) Ratio is calculated by dividing total debt service expenditures by total non-capital expenditures (difference between total expenditures and capitalized capital outlay expenditures) Source: City of Gardena, Administrative Services Department - Finance Division Fiscal Year
City of Gardena
Changes In Fund Balances - Governmental Funds (Continued) Last Ten Fiscal Years Ended June 30, 2022
(modified accrual basis of accounting)
167
Permits, Fines Uses of
Fiscal Licenses and Money and
Year Taxes and Fees Forfeitures Property
2012-13 40,739,594 $ 915,614 $ 1,629,217 $ 163,025 $ 2013-14 43,008,547 1,023,180 1,226,243 270,187 2014-15 44,488,617 1,109,169 1,433,758 248,773 2015-16 46,222,802 1,521,379 1,794,049 499,278 2016-17 46,847,209 1,800,752 1,102,235 129,186 2017-18 47,527,518 1,694,670 1,124,079 158,902 2018-19 50,827,680 1,735,711 2,261,549 1,061,734 2019-20 46,128,710 1,646,059 1,112,890 1,036,059 2020-21 57,968,745 2,389,538 3,168,468 (56,416) 2021-22 70,663,462 2,900,062 3,660,686 (1,517,780) Source: City of Gardena, Administrative Services Department - Finance Division City of Gardena
Governmental Revenues By Sources
Last Ten Fiscal Years
Taxes

68.52%
Permits/Licenses

2.81%
Fine/Forfeitures

3.55%
Use of
Money/Property
-1.47%
Inter-Governmental

8.74%
Service Charges

5.28%
Other Revenue

5.09%
General Revenues by Sources
Fiscal Year Ended June 30, 2022
168
Charges
Fiscal Inter- for Other
Year Governmental Services Revenues Total
2012-13 7,917,316 $
4,087,263$
2,116,705$
57,568,734$
2013-14 11,983,118
4,146,210
2,754,989
64,412,474
2014-
15 11,575,383
4,208,616
3,141,148
66,205,464
2015-
16 5,705,627
4,545,874
1,807,155
62,096,164
2016-
17 5,549,872
5,155,573
2,944,050
63,528,877
2017-
18 6,201,645
5,070,020
1,197,011
62,973,845
2018-
19 7,409,245
5,270,787
892,283
69,458,989
2019-
20 7,157,208
6,142,402
831,773
64,055,101
2020-
21 16,142,006
5,188,250
1,664,391
86,464,982
2021-
22 13,689,853
5,448,044
5,245,065
100,089,392
Source: City of Gardena, Administrative Services Department - Finance Division City of Gardena
Governmental Revenues By Sources (Continued)
Last Ten Fiscal Years
$57.6M $64.4M $66.2M $62.1M $63.5M $63.M $69.5M $64.1M
$86.5M
$100.1M
0 20,000,000
40,000,000
60,000,000
80,000,000
100, 000,000
120, 000,000
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 Fiscal Year
General Revenues by Sources
Last Ten Fiscal Years
169
Recreation
and
Fiscal General Public Public Human
Year Government Safety Works Services
2012-13 6,256,927 $ 30,007,184 $ 5,145,179 $ 6,161,518 $ 2013-14 4,938,101 32,069,172 5,395,817 6,086,777 2014-15 5,108,064 32,542,544 5,352,388 6,135,402 2015-16 4,886,467 34,674,068 5,584,816 6,498,830 2016-17 4,914,416 36,977,198 4,064,485 8,631,034 2017-18 5,025,047 37,851,314 4,012,134 9,194,054 2018-19 6,004,196 45,783,773 8,058,427 6,138,238 2019-20 6,576,421 41,295,066 8,372,502 6,155,882 2020-21(2) 5,325,270 37,558,085 6,776,073 6,232,436 2021-22 5,296,661 41,545,473 7,868,811 7,318,062 Note: These figures include all governmental fund types and exclude other financing sources (uses). (General, Special Revenue, Capital Projects and Debt Service Funds) (1) These figures include Lease/Bonds, Payments for Debt Services and excluding Cost of bonds issuance and escrow payments.
(1) 2021 cost of bond issuance was reclassified into debt service from other financing uses.

Source: City of Gardena, Administrative Services Department - Finance Division City of Gardena
General Governmental Expenditures By Function
Last Ten Fiscal Years
General
Government

6.48%
Public Safety

50.81%
Public Works

9.62%
Recreation/ Human
Services

8.95%
Community
Development

3.74%
Capital Outlay

10.92%
Debt Services

9.48%
General Governmental Expenditures
by Function
Fiscal Year ended June 30, 2022
170
Fiscal Community Capital Debt
Year Development Outlay Service (1)(2) Total
2012-13 2,119,111 $
5,806,502$
2,164,018$
57,660,439$
2013-14 7,499,226
6,075,302
2,326,888
64,391,283
2014-
15 2,594,007
8,064,783
11,257,918
71,055,106
2015-
16 2,533,734
8,332,649
2,124,094
64,634,658
2016-
17 2,757,861
3,349,481
4,134,746
64,829,221
2017-
18 2,734,299
3,794,206
1,855,557
64,466,611
2018-
19 2,382,263
6,127,264
2,101,066
76,595,227
2019-
20 2,474,928
3,636,782
2,123,510
70,635,091
2020-
21 2,789,072
5,199,699
3,513,803
67,394,438
2021-
22 3,061,632
8,929,107
7,750,627
81,770,373
Not
e: These figures include all governmental fund types and exclude other financing sources (uses). (General, Special Revenue, Capital Projects and Debt Service Funds) (1) T hese figures include Lease/Bonds, Payments for Debt Services and excluding Cost of bo
nds issuance and escrow payments.

Source: City of Gardena, Administrative Services Department - Finance Division City of Gardena
General Governmental Expenditures By Function (Continued) Last Ten Fiscal Years
$57.7M
$64.4M
$71.1M
$64.6M $64.8M $64.5M
$76.6M
$70.6M $67.4M
$81.8M
0 10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
70,000,000
80,000,000
90,000,000
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 Fiscal Year
Total General Governmental Expenditures
Last Ten Fiscal Years
171
Fiscal Improve- Personal Improve- Personal Other
Year Land ments Property Total Land ments Property Exemptions Total 2012-13 3,447,381$ 500 $ - $ 3,447,881$ 2,523,336,461$ 2,007,313,501 $ 19,615,465 $ (100,457,741)$ 4,449,807,686 $ 2013-14 3,447,381 500 0 3,447,881 2,610,426,775 2,096, 160,323 20,014,837 (93,299,293) 4,633,302,642 2014-15 3,447,381 500 0 3,447,881 2,733,522,040 2,198, 829,256 21,125,783 (101,657,690) 4,851,819,389 2015-16 256,548 500 0 257, 048 2,901,287,675 2, 302,898,593 21,733,418 (100,791,312) 5,125,128,374 2016-17 256,548 500 0 257, 048 3,059,313,278 2, 408,565,245 21,982,639 (101,483,543) 5,388,377,619 2017-18 256,548 500 0 257, 048 3,259,570,366 2, 534,031,367 22,671,336 (97,785,800) 5,718,487,269 2018-19 256,548 500 0 257, 048 3,514,987,541 2, 674,639,058 22,263,329 (106,481,118) 6,105,408,810 2019-20 256,548 500 0 257, 048 3,745,803,302 2, 836,862,048 22,530,962 (99,222,153) 6,505,974,159 2020-21 379,899 4,167 0 384,066 4,005,949,237 3, 004,367,152 24,551,498 (105,940,809) 6,928,927,078 2021-22 213,049 0 0 213, 049 4,213,320,667 3, 080,008,549 27,201,792 (100,843,365) 7,219,687,643 Source: (1) L.A. County Assessor 2021/22 Combined Tax Rolls (2) Hdl Coren & Cone.
by all the taxing agencies for which the subject property resides within. In addition to 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds.

Taxation Code.

Assessed valuation is based on 100% of full value in accordance with Section 135 of the California Revenue and

SECUREDSECURED -UTILITY
In 1978, California voters passed Proposition 13 which set the property tax at a 1.00% fixed amount. This 1.00% is shared City of Gardena
Assessed Valuation (1) and Actual Value of Taxable Property Last Ten Fiscal Years

STATE ASSESSED LOCALLY ASSESSED
Land

55.36%
Improvements

42.06%
Personal Property

2.58%
Assessed Valuation by Categories
(Total Secured and Unsecured)
Fiscal Year Ended June 30, 2022
172
Home-
Before Taxable % Total Owner
Fiscal Improve- Personal Other O ther Assessed INCR. Direct Property Year ments Property Exemptions Total Exemptions Value (DECR.) Rate (2) Tax Relief 2012-13 151,830,307$ 179,827,045 $ (100,604) $ 331,556,748$ 4,885,370,660 $ 4,784,812,315 $ 1.50% 0.11875% 50,719,063 $ 2013-14 145,965,185 175,158,651 (108,000) 321,015,836 5,051,173,652 4,957,766,359 3.61% 0.11856% 50,015,653 2014-15 140,748,595 174,403,010 (89,000) 315,062,605 5,272,076,565 5,170,329,875 4.29% 0.11837% 49,327,059 2015-16 149,004,701 178,788,974 (82,000) 327,711,675 5,553,970,409 5,453,097,097 5.47% 0.11809% 48,873,792 2016-17 130,722,770 167,676,863 (82,000) 298,317,633 5,788,517,843 5,686,952,300 4.29% 0.11790% 48,088,576 2017-18 125,455,566 161,242,825 (47,000) 286,651,391 6,103,228,508 6,005,395,708 5.60% 0.11766% 47,602,798 2018-19 125,099,278 166,925,685 (77,300) 291,947,663 6,504,171,939 6,397,613,521 6.53% 0.11737% 46,936,370 2019-20 123,980,060 170,442,727 (73,400) 294,349,387 6,899,876,147 6,800,580,594 6.30% 0.11711% 46,368,399 2020-21 119,705,782 174,999,947 (36,400) 294,669,329 7,329,957,682 7,223,980,473 6.23% 0.11685% 45,437,387 2021-22 120,700,759 169,061,580 (1,154,249) 288,608,090 7,610,506,396 7,508,508,782 3.94% 0.11672% 44,954,554 Source: (1) L.A. County Assessor 2021/22 Combined Tax Rolls (2) H dl Coren & Cone.

In 1978, California voters passed Proposition 13 which set the property tax at a 1.00% fixed amount. This 1.00% is shared by all the taxing agencies for which the subject property resides within. In addition to 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds.

Assessed valuation is based on 100% of full value in accordance with Section 135 of the California Revenue and Taxation Code.

LOCALLY ASSESSED

UNSECURED
TOTALS
City of Gardena
Assessed Valuation (1) and Actual Value of Taxable Property (Continued) Last Ten Fiscal Years
$4,785
$4,958
$5,170
$5,453
$5,687
$6,005
$6,398
$6,801
$7,224
$7,509
0 1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 (In Millions)
Fiscal Year
Total Assessed Valuation
(Taxable Values)
Last Ten Fiscal Years
173
CATEGORY 2021-22 2020-21 2019-20 2018-19 2017-18
Residential 4,857,419,242$ 4,671,664,590 $ 4,397,530,388 $ 4,139,852,554 $ 3,879,882,318 $ Commercial 1,027,450,526 1,006,453,482 936,892,089 888,959,749 831,348,140 Industrial 1,117,152,653 1,037,251,905 964,891,072 889,298,836 834,753,358 Govt. Owned - - - - - Recreational 41,518,155 40,966,262 40,263,960 39,491,086 38,342,794 Institutional 94,990,583 89,836,280 76,976,001 74,813,850 78,834,725 Miscellaneous - - - - 451,519 Vacant land 66,349,257 69,851,264 75,744,666 62,990,225 46,086,466 SBE Nonunitary 213,049 384,066 257,048 257,048 257,048 Possessory Int. 14,807,227 12,903,295 13,675,983 10,002,510 8,787,949 Unsecured 288,608,090 294,669,329 294,349,387 291,947,663 286,651,391 Unknown - - - - - 7,508,508,782 7,223,980,473 6,800,580,594 6,397,613,521 6,005,395,708 Homeowner Exemption (1) - - - - - TOTALS: 7,508,508,782$ 7,223,980,473 $ 6,800,580,594 $ 6,397,613,521 $ 6,005,395,708 $ Source: L.A. County Assessor 2012/13-2021/22 Combined Tax Rolls, HdL, Coren & Cone Fiscal Year
City of Gardena
Assessed Value of Property by User Code
Last Ten Fiscal Years
Notes: In 1978 the voters of the State of California passed Proposition 13 which limited taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum of 2%). With few exemptions, property is only reassessed as a result of new construction or at the time it is sold to a new owner. At that point, the property is reassessed based upon the added value of the construction or at the purchase price (market value) or economic value of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitation just mentioned.
-Exempt values are not included in Total.
(1) In 2006-07 certain report formatting changes have been made to comply with GASB 44 standard reporting requirements; therefore, the net of Homeowner Exemption is separated from previous years. 174
CATEGORY 2016-17 2015-16 2014-15 2013-14 2012-13
Residential 3,623,545,163$ 3,441,407,499$ 3,247,456,567$ 3,069,926,331$ 2,964,299,525$ Commercial 791,527,339 750,255,119 715,396,379 680,433,002 656,284,650 Industrial 796,231,706 763,622,835 735,316,073 726,907,557 710,111,242 Govt. Owned 5,250,000 -
-
-
-
Recrea
tional 38,760,141 39,348,412 38,689,706 38,596,521 38,681,903 Institutional 69,798,622 65,412,639 62,243,721 68,337,737 29,057,255 Miscellaneous 442,667 -
-
-
-
Va
cant land 54,308,182 57,298,803 46,471,775 43,043,588 45,420,007 SBE Nonunitary 257,048 257,048 3,447,881 3,447,881 3,447,881 Possessory Int. 8,513,799 7,783,045 6,245,168 6,057,906 5,953,104 Unsecured 298,317,633 327,711,675 315,062,605 321,015,836 331,556,748 Unknown -
22 -
-
-
5,
686,952,300 5,453,097,097 5,170,329,875 4,957,766,359 4,784,812,315 Homeowner Exemption (1) - - - - -
TO
TALS: 5,686,952,300 5,453,097,097 5,170,329,875 4,957,766,359 4,784,812,315 Source: L.A. County Assessor 2012/13-2021/22 Combined Tax Rolls, HdL, Coren & Cone Fiscal Year
City of Gardena
Assessed Value of Property by User Code (Continued)
Last Ten Fiscal Years
above represents the only data currently available with respect to the actual market value of taxable property maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum of 2%). With few exemptions, property is only reassessed as a result of new construction or at the time it is sold to a new owner. At that point, the property is reassessed based upon the added value of the construction or at the purchase price (market value) or economic value of the property sold. The assessed valuation data shown Notes: In 1978 the voters of the State of California passed Proposition 13 which limited taxes to a total -
Exempt values are not included in Total.
reporting requirements; therefore, the net of Homeowner Exemption is separated from previous years. (1) In 2006-07 certain report formatting changes have been made to comply with GASB 44 standard and is subject to the limitation just mentioned.
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 $2,964 $3,070
$3,247
$3,441
$3,623
$3,879 $4,
140 $4,
398 $4,672 $4.
857
(in Millions)
Fiscal Year
Assessed Value - Taxable Property
Last Ten Fiscal Years
Residential
Commercial
Vacant land
All others
175
Fiscal
Year Residential Commercial Industrial Agriculture Recreational Institutional Govt. Owned Vacant land 2012-13 2,964,300$ 656,285 $ 710,111 $ - $ 38,682$ 29,057 $ - $ 45,420$ 2013-14 3,069,926 680,433 726,908 - 38,597 68,338 - 43,043 2014-15 3,247,457 715,396 735,316 - 38,690 62,244 - 46,472 2015-16 3,441,407 750,255 763,623 - 39,348 65,413 - 57,299 2016-17 3,623,545 791,527 796,232 - 38,760 69,798 5,250 54,308 2017-18 3,879,882 831,348 834,753 - 38,342 78,834 - 46,086 2018-19 4,139,853 888,960 889,299 - 39,491 74,814 - 62,990 2019-20 4,397,530 936,892 964,891 - 40,264 76,976 - 75,745 2020-21 4,671,665 1,006,453 1,037,252 - 40,967 89,836 - 69,851 2021-22 4,857,419 1,027,451 1,117,153 - 41,518 94,991 - 66,349 NOTES: Report formatting changes have been made to comply with GASB 44 standard reporting requirements.

Public Utility values are not included in this report.
(1) Tax Rate Areas: TRA 000576
-Tax rate limit: A state constitutional amendment (Proposition 13) provided that the tax rate was limited to 1% of full cash values, levied only by the County and shared with all other jurisdictions. All other jurisdictions and the County can levy a tax rate for voter-approved debt.
(2) Estimated Actual Value is derived from a series of calculations comparing median assessed values from 1940 to current median sales price and the Factor of Taxable Assessed Value is the result. This factor is changing from year to year; however, since the previous fiscal years calculating data is not available, the fiscal year 2007-08 factor is used.

Source: L.A. County Assessor 2012/13-2021/22 Combined Tax Rolls, HdL, Coren & Cone City of Gardena
Assessed Value and Estimated Value of Taxable Property
Last Ten Fiscal Years
(in thousands)
176
Total Factor of
Direct Estimated Taxable
Fiscal SBE Tax Taxable Assessed
Year Nonunitary Possessory Int. Unsecured Misc. TOTAL Rate (1) Value (2) Value 2012-13 3,448 $ 5,953 $ 331,557$ - $ 4,784,813$ 0.11875 6,381,553$ 1.33371
2013-14 3,448 6,058 321,015 - 4,957,766 0.11856 6,612,222 1.33371 2014-15 3,448 6,245 315,062 - 5,170,330 0.11837 6,895,721 1.33371 2015-16 257 7,783 327,712 - 5,453,097 0.11809 7,272,850 1.33371 2016-17 257 8,514 298,317 442 5,686,950 0.11790 7,584,742 1.33371 2017-18 257 8,787 286,651 - 6,004,940 0.11790 8,008,849 1.33371 2018-19 257 10,002 291,948 - 6,397,614 0.11737 8,532,562 1.33371 2019-20 257 13,676 294,349 - 6,800,580 0.11711 9,070,002 1.33371 2020-21 384 12,903 294,669 - 7,223,980 0.11685 9,634,694 1.33371 2021-22 213 14,807 288,608 - 7,508,509 0.11672 10,014,174 1.33371 Report formatting changes have been made to comply with GASB 44 standard reporting requirements.

Public Utility values are not included in this report.
(1) Tax Rate Areas: TRA 000576
-Tax rate limit: A state constitutional amendment (Proposition 13) provided that the tax rate was limited to 1% of full cash values, levied only by the County and shared with all other jurisdictions. All other jurisdictions and the County can levy a tax rate for voter-approved debt.
(2) Estimated Actual Value is derived from a series of calculations comparing median assessed values from 1940 to current median sales price and the Factor of Taxable Assessed Value is the result. This factor is changing from year to year; however, since the previous fiscal years calculating data is not available, the fiscal year 2007-08 factor is used.

Source:

L.A. County Assessor 2012/13-2021/22 Combined Tax Rolls, HdL, Coren & Cone Assessed Value and Estimated Value of Taxable Property (Continued) City of Gardena
Last Ten Fiscal Years
(in thousands)
177
Fiscal No. of No. of No. of
Year Permits Valuation Permits Valuation Permits Valuation 2012-13 430 10,378,040 $ 239 12,953,704 $ 4 116,531 $ 2013-14 650 11,943,363 232 10,733,859 2 225,600 2014-15 785 11,173,245 295 10,524,008 2 63,500 2015-16 1,126 18,042,192 253 12,303,725 2 26,500 2016-17 1,161 10,988,165 269 16,919,670 9 7,091,565 2017-18 964 18,379,450 264 25,034,187 15 1,069,280 2018-19 1,107 23,699,914 220 10,676,880 11 437,850 2019-20 927 33,001,214 164 11,378,321 10 88,468 2020-21 737 82,991,894 105 10,605,434 5 1,712,440 2021-22 1,041 49,722,116 146 20,804,846 2 320,000 Sources: (1) City of Gardena, Community Development Department. (2) City of Gardena-FDIC-Insured Institutions as of 06/30/2022 CONSTRUCTION (1)
Residential Commercial Industrial
City of Gardena
Construction and Bank Deposits
(Miscellaneous Information)
Last Ten Fiscal Years
1,512
2,078
2,445 3,010
3,152
2,951
3,038
2,723 1,915
2,167
0 500
1,000
1,500
2,000
2,500
3,000
3,500
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 Fiscal Year
Number of Permits
Last Ten Fiscal Years
178
Bank
Fiscal No. of No. of Deposits (2)
Year Permits Valuation Permits Valuation (in Thousands) 2012-13 839 150,000$ 1,512 23,598,275$ 1,609,537 2013-14 1,194 10,000 2,078 22,912,822 1,694,573 2014-15 1,363 966,527 2,445 22,727,280 1,656,979 2015-16 1,629 - 3,010 30,372,417 2,311,146
2016-17 1,713 - 3,152 34,999,400 1,913,039
2017-18 1,708 - 2,951 44,482,917 1,913,039
2018-19 1,700 - 3,038 34,814,644 1,980,803
2019-20 1,622 - 2,723 44,468,003 2,285,338
2020-21 1,068 310,030 1,915 95,619,798 2,483,396 2021-22 978 109,000 2,167 70,955,962 2,618,588 Sources: (1) City of Gardena, Community Development Department. (2) City of Gardena-FDIC-Insured Institutions as of 06/30/2022 TotalAll others
CONSTRUCTION (1)
Last Ten Fiscal Years
City of Gardena
Construction and Bank Deposits (Continued)
(Miscellaneous Information)
23,598
22,913
22,727
30,372
34,999
44,483
34,815
44,468
95,620
70,956
0 20,000
40,000
60,000
80,000
100,000
120,000
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 (in Thousands)
Fiscal Year
Permit Valuation
Last Ten Fiscal Years
(in thousands)
179
Los Angeles
Fiscal Los Angeles Unified School
Year General County District
2012-13 1.000000 0.000000 0.175610
2013-14 1.000000 0.000000 0.146440
2014-15 1.000000 0.000000 0.146880
2015-16 1.000000 0.000000 0.129710
2016-17 1.000000 0.000000 0.131100
2017-18 1.000000 0.000000 0.122190
2018-19 1.000000 0.000000 0.123230
2019-20 1.000000 0.000000 0.125520
2020-21 1.000000 0.000000 0.139930
2021-22 1.000000 0.000000 0.113230
(1) Tax Rate Areas: TRA 000576
-Tax rate limit: A state constitutional amendment (Proposition 13) provided that the tax rate was limited to 1% of full cash values, levied only by the County and shared with all other jurisdictions. All other jurisdictions and the County can levy a tax rate for voter-approved debt.

Source: L.A. County Assessor 2012/13-2021/22 Combined Tax Rolls, HdL, Coren & Cone City of Gardena
Property Tax Rates (1) - All Overlapping Governments
Last Ten Fiscal Years
(Rate per $100 of Taxable Value)

0.0000

0.1000

0.2000

0.3000

0.4000

0.5000

0.6000

0.7000

0.8000

0.9000

1.0000

1.0000

0.0000

0.1132

0.0438

0.0000

0.0035
Tax Rates
Governments
Property Tax Rates -All Overlapping Governments
Fiscal Year ended June 30, 2022

GENERAL
LA
COUNTY
LA USD
LACCD
LACFC
MWD
180
Los Angeles Los Angeles
Community County Metropolitan
Fiscal College Flood Water
Year District Control District Total
2012-13 0.048750 0.000000 0.003500 1.227860
2013-14 0.044540 0.000000 0.003500 1.194480
2014-15 0.040170 0.000000 0.003500 1.190550
2015-16 0.035750 0.000000 0.003500 1.168960
2016-17 0.035960 0.000000 0.003500 1.170560
2017-18 0.045990 0.000000 0.003500 1.171680
2018-19 0.046210 0.000000 0.003500 1.172940
2019-20 0.027170 0.000000 0.003500 1.156190
2020-21 0.040160 0.000000 0.003500 1.183590
2021-22 0.043760 0.000000 0.003500 1.160490
(1) Tax Rate Areas: TRA 000576
-Tax rate limit: A state constitutional amendment (Proposition 13) provided that the tax rate was limited to 1% of full cash values, levied only by the County and shared with all other jurisdictions. All other jurisdictions and the County can levy a tax rate for voter-approved debt.

Source: L.A. County Assessor 2012/13-2021/22 Combined Tax Rolls, HdL, Coren & Cone City of Gardena
Property Tax Rates (1) - All Overlapping Governments (Continued) Last Ten Fiscal Years
(Rate per $100 of Taxable Value)

1.2279

1.1945

1.1906

1.1690

1.1706

1.1717

1.1729

1.1562

1.1836

1.1605

1.120

1.140

1.160

1.180

1.200

1.220

1.240
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 Tax Rates
Fiscal Year
Total Overlapping Governments
Last Ten Fiscal Years
181
Agency 21-22 20-21 19-20 18-19 17-18
City of Gardena Tax District 1 0.11160 % 0.11160 % 0.11160 % 0.11160 % 0.11160 % Children's Institutional Tuition Fund 0.00285 % 0.00285 % 0.00285 % 0.00285 % 0.00285 % County Sanitation District No. 5 Operations 0.01256 % 0.01256 % 0.01256 % 0.01256 % 0.01256 % County School Services 0.00144 % 0.00144 % 0.00144 % 0.00144 % 0.00144 % County School Service Fund Los Angeles 0.00001 % 0.00001 % 0.00001 % 0.00001 % 0.00001 % Development Center for Handicapped Minors -LA Unified School District 0.00127 % 0.00127 % 0.00127 % 0.00127 % 0.00127 % Educational Augmentation Fund Impound 0.16240 % 0.16240 % 0.16240 % 0.16240 % 0.16240 % Educational Augmentation Fund (ERAF) Impound 0.07820 % 0.07820 % 0.07820 % 0.07820 % 0.07820 % LA City Community College District 0.03070 % 0.03070 % 0.03070 % 0.03070 % 0.03070 % LA County Community College Children's Center Fund 0.00032 % 0.00032 % 0.00032 % 0.00032 % 0.00032 % LA County Accumulative Capital Outlays 0.00012 % 0.00012 % 0.00012 % 0.00012 % 0.00012 % LA County Fire - Ffw 0.00747 % 0.00747 % 0.00747 % 0.00747 % 0.00747 % LA County Flood Control Dr. Improvement District 0.00178 % 0.00178 % 0.00178 % 0.00178 % 0.00178 % LA County Library 0.02380 % 0.02380 % 0.02380 % 0.02380 % 0.02380 % LA County Flood Control Maintenance 0.01007 % 0.01007 % 0.01007 % 0.01007 % 0.01007 % Los Angeles Children's Center Fund 0.00371 % 0.00371 % 0.00371 % 0.00371 % 0.00371 % LA County General 0.32520 % 0.32520 % 0.32520 % 0.32520 % 0.32520 % Los Angeles Unified School District 0.22590 % 0.22590 % 0.22590 % 0.22590 % 0.22590 % Greater L A Co Vector Control 0.00038 % 0.00038 % 0.00038 % 0.00038 % 0.00038 % Water Replacement District of Southern California 0.00018 % 0.00018 % 0.00018 % 0.00018 % 0.00018 % Total Prop. 13 Rate: 1.00000 % 1.00000 % 1.00000 % 1.00000 % 1.00000 % TOTAL DIRECT RATE (Producing Revenue for The City)
(1): 0.11672 % 0.11685 % 0.11711 0.11737 % 0.11766 %
County of Los Angeles (1) 0.00000 % 0.00000 % 0.00000 0.00000 % 0.00000 % Notes: General fund tax rates are representative and based upon the direct and overlapping rates for the largest General Fund tax rates area (TRA) by net taxable value.

Total Direct Rate (1) is weighted average of all individual direct rates applied by the government preparing the statistical section information. The percentages presented in the columns above do not sum across rows.

RDA rate is based on the largest RDA tax rate area (TRA) and includes only rate(s) from indebtedness adopted prior to 1989 per California State statute. RDA direct and overlapping rates are applied only to the incremental property values.

In 1978, California voters passed Proposition 13 which set the property tax at a 1.00% fixed amount. This 1.00% is shared by all the taxing agencies for which the subject property resides within. In addition to 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds.

Source:
(1)
L.A. County Assessor 2012/13-2021/22 Combined Tax Rolls, HdL, Coren & Cone City of Gardena
Direct and Overlapping Property Tax Rates
(rate per $100 of assessed value)
Ten Fiscal Year Detail of Rates for Largest General Fund Tax Rates Area 00576 (Proposition 13 Rate)

FISCAL YEAR
182
Agency 16-17 15-16 14-15 13-14 12-13
City of Gardena Tax District 1 0.11160 % 0.11160 % 0.11157 % 0.11157 % 0.11157 % Children's Institutional Tuition Fund 0.00285 % 0.00285 % 0.00285 % 0.00285 % 0.00285 % County Sanitation District No. 5 Operations 0.01256 % 0.01256 % 0.01256 % 0.01256 % 0.01256 % County School Services 0.00144 % 0.00144 % 0.00144 % 0.00144 % 0.00144 % County School Service Fund of Angeles -LAUSD 0.00001 % 0.00001 % 0.00001 % 0.00001 % 0.00001 % Development Center for Handicapped Minors -LA Unified School District 0.00127 % 0.00127 % 0.00127 % 0.00127 % 0.00127 % Educational Augmentation Fund Impound 0.16240 % 0.16240 % 0.16240 % 0.16240 % 0.16240 % Educational Augmentation Fund (ERAF) Impound 0.07820 % 0.07820 % 0.07820 % 0.07820 % 0.07820 % LA County Community College District 0.03070 % 0.03070 % 0.03070 % 0.03070 % 0.03070 % LA County Community College Children's Center Fund 0.00032 % 0.00032 % 0.00032 % 0.00032 % 0.00032 % LA County Accumulative Capital Outlays 0.00012 % 0.00012 % 0.00012 % 0.00012 % 0.00012 % LA County Fire - Ffw 0.00747 % 0.00747 % 0.00747 % 0.00747 % 0.00747 % LA County Flood Control Improvement District 0.00178 % 0.00178 % 0.00178 % 0.00178 % 0.00178 % LA County Library 0.02380 % 0.02380 % 0.02380 % 0.02380 % 0.02380 % LA County Flood Control Maintenance 0.01007 % 0.01007 % 0.01007 % 0.01007 % 0.01007 % Los Angeles Children's Center Fund 0.00371 % 0.00371 % 0.00371 % 0.00371 % 0.00371 % LA County General 0.32520 % 0.32520 % 0.32520 % 0.32520 % 0.32520 % Los Angeles Unified School District 0.22590 % 0.22590 % 0.22590 % 0.22590 % 0.22590 % Greater L A Co Vector Control 0.00038 % 0.00038 % 0.00038 % 0.00038 % 0.00038 % Water Replacement District of Southern California 0.00018 % 0.00018 % 0.00018 % 0.00018 % 0.00018 % Total Prop. 13 Rate: 1.00000 % 1 .00000 % 1.00000 % 1.00000 % 1.00000 % TOTAL DIRECT RATE (Producing Revenue for The City)
(1): 0.11790 % 0.11809 % 0.11837 % 0.11856 % 0.11875 %
County of Los Angeles (1) 0.00000 % 0.00000 % 0.00000 % 0.00000 % 0.00000 % City of Gardena
Direct and Overlapping Property Tax Rates (Continued)

FISCAL YEAR
(rate per $100 of assessed value)
Ten Fiscal Year Detail of Rates for Largest General Fund Tax Rates Area 00576 (Proposition 13 Rate)

0.000%

0.020%

0.040%

0.060%

0.080%

0.100%
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22

0.119%

0.119%

0.118%

0.118%

0.118%

0.118%

0.117%

0.117%

0.117%

0.117%
Fiscal Year
Total Direct Rate
Last Ten Fiscal Years
183
Percent of Percent of
Total Total City Total Total City
Business Assessed Assessed Assessed Assessed
Type Value Value Value Value
Nissin Foods USA Company Inc Manufacturing $56,220,281 0.75 % MPT of Gardena PHS LP Hospital services 54,559,436 0.73 Terreno 139th LLC Non-residential property owners 39,471,753 0.53 Avcorp Composite Fabrication Manufacturing 32,858,149 0.44 JSL Gardena I LLC Non-residential property owners 32,181,779 0.43 14215 Normandie LLC Property management 31,651,445 0.42 Ray Pellegrino Trust Property management 25,986,740 0.35 Majestic Properties Inc Property management 25,259,140 0.34 Target Corporation Retail sales 23,297,718 0.31
PK I Gardena Gateway Center LP Retail sales 22,898,561 0.30 Hitco Carbon Composites Inc Manufacturing 104,587,902 2.19 % Nissin Foods Co Inc Manufacturing 58,707,765 1.23
JSL Gardena I LLC Non-residential property owners 27,733,284 0.58 Brek Manufacturing Company Lessee Manufacturing 27,685,697 0.58 Southwest Offset Printing Company Inc Manufacturing 27,030,076 0.56 Majestic Properties Inc Property management 25,916,271 0.54 Gramercy Properties LLC Non-residential property owners 20,848,081 0.44 Target Corporation Retail sales 20,190,867 0.42
Russmar Investment Group Property management 17,693,245 0.37 New Group Gardena LLC Non-residential property owners 16,638,680 0.35 To
p Ten Totals (secured and unsecured): 344,385,002 4.59 % 347,031,868 7.25 % All Others (secured) 7,164,123,780 95.41 4,437,780,447 92.75 Total All Assessed Valuation (secured): $7,508,508,782 100.00 % $4,784,812,315 100.00 % Source: L.A. County Assessor 2012/13-2021/22 Combined Tax Rolls and the SBE Non Unitary Tax Roll City of Gardena
Ten Largest Property Taxpayers
Current Year and Nine Years Ago
Owner/Taxpayer
Fiscal Year 2021-22 Fiscal Year 2012-13
184
Business Type Tax Payers Business Type
1 76 Service Stations 76 Service Stations
2 A&A Chevron Service Stations A&A Chevron Service Stations 3 Arco AM PM Service Stations Beacon Roofing Supply Building Materials 4 Beacon Roofing Supply Building Materials Carrows Casual Dining 5 Chick Fil A Quick-Service Restaurants Crenshaw Lumber Co Building Materials 6 Crenshaw Lumber Co Building Materials dd's Discounts Family Apparel 7 Crenshaw Wholesale Electric Supply Plumbing/Electrical Supplies Enterprise Rent A Car Transportation/Rentals 8 Enterprise Rent A Car Transportation/Rentals Food 4 Less Grocery Stores 9 G & C Equipment Finders Corp Contractors G & C Equipment Finders Corp Contractors 10 Gardena Electric & Lighting Electrical Equipment Gardena Blue Water Service Stations 11 Gardena Honda New Motor Vehicle Dealers Gardena Honda New Motor Vehicle Dealers 12 Gardena Nissan New Motor Vehicle Dealers Gardena Nissan New Motor Vehicle Dealers 13 Honda Lease Trust Auto Lease Hitco Technologies Heavy Industrial 14 Irg Plotters & Printers Auto Lease Marukai Market Grocery Stores 15 Marukai Market Grocery Stores McDonald's Quick-Service Restaurants 16 McDonald's Quick-Service Restaurants Mobil Gardena Service Stations 17 Nader's Furniture Home Furnishings New York Times Sales Light Industrial/Printers 18 Nissan of Gardena New Motor Vehicle Dealers Pam's Shell Service Stations 19 Raising Cane's Quick-Service Restaurants Sam's Club Discount Dept Stores 20 Ralphs Grocery Stores Smardan Hatcher Co Contractors 21 Sam's Club Discount Dept Stores Target Discount Dept Stores 22 Smardan Hatcher Co. Contractors United Oil Company Service Stations 23 Target Discount Dept Stores Vons Fuel Service Stations 24 Vons Fuel Service Stations Wood Oil Company Petroleum Prod/Equipment 25 Wood Oil Company Petroleum Prod/Equipment Z Gallerie Home Furnishings *** The names are listed in alphabetical order, not sales tax volume.

Source: SBOE data - HdL Companies
(1) Period: from July 1 to June 30
Fiscal Year 2012-13
Tax Payers
Fiscal Year 2021-22
City of Gardena
Top 25 Sales Tax Producers (1)
(Miscellaneous Information)
Current Fiscal Year and Nine Years Ago
of the total sales tax collected. of the total sales tax collected. -Account for 55.90% -Account for 59.25%
185

COLLECTED WITHIN THE

FISCAL YEAR OF LEVY TOTAL COLLECTIONS TO DATE
Fiscal Taxes Levied for Percent of Collections in Percent of Year the Fiscal Year Amount Levy Subsequent Years Amount Levy 2012-13 5,491,677$ 5,491,096 $ 99.99% 581 5,491,677 $ 100.00% 2013-14 5,698,386 5,695,450 99.95% 2,936 5,698,386 100.00% 2014-15 5,948,939 5,946,829 99.96% 2,109 5,948,939 100.00% 2015-16 6,208,056 6,192,921 99.76% 15,134 6,208,056 100.00% 2016-17 6,447,952 6,433,016 99.77% 14,936 6,447,952 100.00% 2017-18 6,832,148 6,816,038 99.76% 16,110 6,832,148 100.00% 2018-19 7,198,451 7,164,319 99.53% 34,132 7,198,451 100.00% 2019-20 7,660,514 7,640,236 99.74% 20,278 7,660,514 100.00% 2020-21 8,233,669 8,207,649 99.68% 26,020 8,233,669 100.00% 2021-22 8,540,847 8,524,459 99.81% 16,388 8,540,847 100.00% NOTE: Article XIII-A of the Constitution of the State of California adopted by the electorate in June 1978, precludes the City from a local property tax levy. All general-purpose property taxes are levied by the County and allocated to other governmental entities on a predetermined formula.

Sources: City of Gardena, Administrative Services Department - Finance Division City of Gardena
Property Tax Levies, Tax Collections, and Delinquency
Last Ten Fiscal Years
0 1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 8,540,847
8,540,847
Fiscal Year
Tax Collections and Delinquency
Last Ten Fiscal Years
Levies
Collections
186
Percent of
Fiscal Card Club General Fund General Fund
Year Revenue (1) Gross Revenue Revenue
2012-13 8,394,406$
47,637,218$ 17.62%
2013-14 9,467,078 51,004,568 18.56%
2014-15 9,517,550 54,413,202 17.49%
2015-16 9,057,202 54,092,710 16.74%
2016-17 8,975,991 56,237,621 15.96%
2017-18 8,071,001 55,972,281 14.42%
2018-19 8,101,583 60,267,575 13.44%
2019-20 4,718,691 55,906,560 8.44%
2020-21 4,154,913 79,772,701 5.21%
2021-22 10,544,948 80,865,048 13.04%
(1) T wo card clubs: Lucky Lady Casino & Hustler Casino City
receives 12% of the total monthly gross revenue of the card game business.

City of Gardena
Last Ten Fiscal Years
Card Club Gross Revenue Fee

8.39 9.47

9.52 9.06

8.98 8.07

8.10 4.72

4.15 10.50
0 2
4 6
8 10
12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 Fiscal Year
Card Club Gross Revenue
Last Ten Fiscal Years
in Millions
187
2022 2021 2020 2019 2018
Utility Users Tax Electric 2,584,392$ 2,331,492$ 2,110,227$ 2,215,028$ 2,202,782$ Utility Users Tax Gas 837,674 648,472 616,341 585,308 534,547 Utility Users Tax Electric Service Provider 323,978 199,496 217,700 171,490 179,887 Utility Users Tax Gas-Non Core 111,839 88,421 91,533 90,338 73,074 UUT-Mobile/Cellular Telephones 216,708 181,548 313,603 425,866 571,794 UUT-Long Distance Telephone/Non Cellular 417,966 458,602 490,588 535,347 515,858 Utility Users Tax Water 930,300 947,276 902,866 859,531 888,203 UUT-Prepaid Mobile Telephone 58,537 115,493 58,372 72,738 122,306 TOTAL 5,481,395$ 4,970,799$ 4,801,230$ 4,955,645$ 5,088,450$ Sources: City of Gardena, Administrative Services Department - Finance Division City of Gardena
Utility Users Tax Received
Last Five Fiscal Years
Fiscal Year Ended June 30
188
2021 2020 2019 2018 2017
Apparel Stores 13,485$ 9,217 $ 12,203 $ 11,198 $ 10,148 $ General Merchandise 152,715 127,460 125,848 94,324 88,651 Food Stores 46,206 47,765 43,372 42,878 42,836
Eating and Drinking Places 207,980 168,695 193,262 177,628 166,504 Building Materials 227,448 155,871 141,356 176,282 162,453 Auto Dealers and Supplies 162,045 136,376 152,810 146,803 155,973 Service Stations 92,371 68,189 93,644 93,104 81,452 Other Retail Stores 86,316 89,396 86,793 83,225 84,618 All Other Outlets 418,638 428,278 380,353 381,836 334,355 TOTAL 1,407,204$ 1,231,247$ 1,229,641$ 1,207,278$ 1,126,990$ Source: State Board of Equalization, California Department of Taxes and Fees Administration, State Controller's Office, HdL Companies City of Gardena
Taxable Sales by Category
Fiscal Years 2017 through 2021
(in thousands)
Fiscal Year
189
Fiscal Certificates of Revenue Pension Lease Direct
Year Po pulation (1) Participation (2) Bonds
Obligation
Bonds payable(3)
Loan
Payable
Purchase
Lease Other Total
2012-13 59,566 21,995,000 2,175,000 - 153,004 - - - 24,323,004 2013-14 60,082 21,455,000 2,095,000 - 130,661 2,521,577 - - 26,202,238 2014-15 60,414 12,370,000 10,835,639 - 67,125 2,930,317 - - 26,203,081 2015-16 60,785 11,770,000 10,764,523 - - 3,114,763 - 124,548 25,773,834 2016-17 60,721 9,170,000 10,688,407 - - 3,200,986 1,635,000 111,443 24,805,836 2017-18 61,246 8,710,000 10,552,291 - - 3,287,209 1,635,000 93,545 24,278,045 2018-19 61,042 8,220,000 10,411,175 - - 3,373,432 1,390,000 80,741 23,475,348 2019-20 60,937 7,700,000 10,260,059 - - 3,459,655 1,120,000 68,045 22,607,759 2020-21 60,344 7,150,000 10,103,943 79,029,723 381,696 3,545,880 845,000 53,749 101,109,991 2021-22 59,947 6,565,000 24,826,484 76,692,725 337,409 3,632,103 565,000 43,361 112,662,082 NOTES:
(1) State of California, Finance Department
(2) The City of Gardena had 6 Certificates of Participations at the end of fiscal year 1996-97. At the end of fiscal year 2005-06, there were only two Certificates of Participation Series 2001A and 2006AB&C. During the fiscal year 2005-06, the City refunded the Certificates of Participation Series 1994 and 1999 A & B by Series 2006 A B & C.

In fiscal year 2006-07, the City refunded Certificates of Participation Series 2001A by the Refunding Revenue COPs series 2007A.

In fiscal year 2014-15, the City refunded Certificates of Participation Series 2006 B by the Taxable Lease Revenue Refunding Bonds 2014.

In fiscal year 2016-17, the City refunded Certificates of Participation Series 2006 C by the 2017 Direct Purchase Lease. -Refer to Notes in the Financial Statement for details of the City's outstanding debt (3) Lease payable balance as of 6/30/21 was restated due to the implementation of GASB 87 (4) Assessed value has been used because the actual value of taxable property is not readily available in the State of California (5) Income data was provided by HDL Coren & Cone using City of Gardena Average per Capita Personal Income.

Sources: City of Gardena, Administrative Services Department - Finance Division County of Los Angeles, Auditor-Controller Office/Tax Division HdL Coren & Cone

GOVERNMENTAL ACTIVITIES
City of Gardena
Ratio of Outstanding Debt by Type
Last Ten Fiscal Years
$408
$436
$434
$424
$409
$396
$385
$371
$2,049 $2,242
0 500
1,000
1,500
2,000
2,500
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 Fiscal Year
Outstanding Debt per Capita
Last Ten Fiscal Years
190
Percent of
Average
per Percent
Taxable Taxable Debt Capita of Debt by
Fiscal Pension Lease
Assessed Assessed per Personal Personal
Year
Obligation
Bonds payable Total Value (4) Value Ca pita Income (5) Income 2012-13 - $
-$
4,784,812,315$ 0.51% 408 22,651 1.80%
2013-14 - - 4,957,766,359 0.53% 436 23,037 1.89%
2014-15 - - 5,170,329,875 0.51% 434 23,032 1.88%
2015-16 - - 5,453,097,097 0.47% 424 22,808 1.86%
2016-17 - - 5,686,952,300 0.44% 409 23,246 1.76%
2017-18 - - 6,005,395,708 0.40% 396 23,584 1.68%
2018-19 - - 6,397,613,521 0.37% 385 24,282 1.58%
2019-20 - - 6,800,580,594 0.33% 371 25,991 1.43%
2020-21 22,250,277 304,112 22,554,389 7,223,980,473 1.71% 2,049 27,372 7.49% 2021-22 21,592,275 158,923 21,751,198 7,508,508,782 1.79% 2,242 28,211 7.95%

BUSINESS-TYPE ACTIVITIES
City of Gardena
Ratio of Outstanding Debt by Type (Continued)
Last Ten Fiscal Years
191

STATISTICAL SECTION
Fiscal Year 2021-22
(This page is intentionally left blank)
192
(1)
Net
Fiscal Operating Available Percent
Year Revenue Expenses Revenue Principal Interest Coverage 2017-18 55,972,281 56,342,986 (370,705) 95,000 92,825 (1.97) 2018-19 60,267,575 67,269,131 (7,001,556) 100,000 88,075 (37.23) 2019-20 55,906,560 61,786,869 (5,880,309) 105,000 83,075 (31.27) 2020-21 79,772,701 61,625,048 18,147,653 110,000 77,825 96.62 2021-22 80,865,048 67,821,502 13,043,546 115,000 72,325 69.63 NOTES:
(1) On January 24, 2007, the City issued the Refunding Revenue Bonds, Series 2007A to refund the Certificates of Participation Series 2001A. No principal and interest were paid during the fiscal year 2006-07. -Details regarding the City's outstanding debt can be found in the notes to the financial statements. -Shortfall in net available revenue was covered by the general fund balance Sources: City of Gardena, Administrative Services Department - Finance Division Debt Service
Refunding Certificates of Participation
City of Gardena
Pledged-Revenue Coverage
Last Five Fiscal Years
193
Percent
of
Less: Amounts Less: Amounts Taxable Taxable Debt
Fiscal Certificates of Available in Debt Pension Available in Debt Assessed Assessed per Year Population (1)
Participation Service Fund (2)
Obligation Bonds Service Fund (3)
Total Value Value Capita
2012-13 59,566 21,995,000 540,000 - - 21,455,000 4,784,812,315 0.45% 360 2013-14 60,082 21,455,000 570,000 - - 20,885,000 4,957,766,359 0.42% 348 2014-15 60,414 12,370,000 600,000 - - 11,770,000 5,170,329,875 0.23% 195 2015-16 60,785 11,770,000 640,000 - - 11,130,000 5,453,097,097 0.20% 183 2016-17 60,721 9,170,000 460,000 - - 8,710,000 5,686,952,300 0.15% 143 2017-18 61,246 8,710,000 490,000 - - 8,220,000 6,005,395,708 0.14% 134 2018-19 61,042 8,220,000 520,000 - - 7,700,000 6,397,613,521 0.12% 126 2019-20 60,937 7,700,000 550,000 - - 7,150,000 6,800,580,594 0.11% 117 2020-21 60,344 7,150,000 585,000 101,280,000 2,995,000 104,850,000 7,223,980,473 1.45% 1,738 2021-22 59,947 6,565,000 625,000 98,285,000 3,665,001 100,559,999 7,508,508,782 1.34% 1,677 Source: (1) State of California, Finance Department.
(2) This is the amount restricted for the COP debt service principal payments.

OUTSTANDING GENERAL BONDED DEBT
City of Gardena
Ratio of General Bonded Debt Outstanding
Last Ten Fiscal Years
$372 $360 $348
$195 $143 $134 $126 $117
$1,738
$1,677
0 200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 Fiscal Year
General Bonded Debt Outstanding per Capita
Last Ten Fiscal Years
194
2021-22 Assessed Valuation: $7,508,508,782
2021-22 Population: 59,947
Percent Cit y's Share
Total Debt A pplicable of Debt
06/30/2022 To Cit y (1) 06/30/2022
Direct Debt
GARDENA GENERAL FUND OBLIGATIONS 112,662,082 100.000 % 112,662,082 Total Direct Debt 112,662,082 112,662,082

OVERLAPPING DEBT
METROPOLITAN WATER DISTRICT 9,835,780 0.454 % 44,687
LA CCD DS 2003 TAXABLE SERIES 2004B 2,115,000 0.751 % 15,874 LA CCD DS 2001 TAXABLE SERIES 2004A 31,555,000 0.751 % 236,839 LA CCD DS 2008, 2009 TAXABLE SER B 75,000,000 0.751 % 562,920 LA CCD DS 2008, 2010 TAX SERIES D 125,000,000 0.751 % 938,200 LA CCD DS 2008, 2010 TAX SER E (BABS) 900,000,000 0.751 % 6,755,043 LA CCD DS 2013 13,000,000 0.751 % 97,573
LA CCD DS 2013 REF BONDS 8,380,000 0.751 % 62,897
LA CCD DS 2008 SERIES G 30,765,000 0.751 % 230,910
LA CCD DS 2015 REF SERIES A 144,260,000 0.751 % 1,082,758 LA CCD DS 2015 REF SERIES B 14,965,000 0.751 % 112,321
LA CCD DS 2015 REF SERIES C 178,565,000 0.751 % 1,340,238 LA CCD DS 2008 SERIES I 184,220,000 0.751 % 1,382,682
LA CCD DS 2008 SERIES J 173,020,000 0.751 % 1,298,620
LA CCD DS 2016 REF BONDS 239,880,000 0.751 % 1,800,444
LA CCD DS 2020 REF BONDS 1,750,350,000 0.751 % 13,137,433 LA CCD DS 2016 SERIES C 275,440,000 0.751 % 2,067,343
LOS ANGELES UNIF DS 2002 SERIES E (BABS) 200,000,000 0.917 % 1,834,917 LOS ANGELES UNIF DS 2005 SERIES H 207,560,000 0.917 % 1,904,276 LOS ANGELES UNIF MEASURE R SERIES KRY BABS 363,005,000 0.917 % 3,330,420 LOS ANGELES UNIF MEASURE Y 2009 SERIES RY BABS 806,795,000 0.917 % 7,402,008 LOS ANGELES UNIF MEASURE R 2010 SERIES RY BABS 477,630,000 0.917 % 4,382,056 LOS ANGELES UNIF MEASURE Y 2010 SERIES RY BABS 772,955,000 0.917 % 7,091,540 LOS ANGELES UNIF DS 2005 2010 SERIES J-1 QSCBS 115,480,000 0.917 % 1,059,481 LOS ANGELES UNIF DS 2005 2010 SERIES J-2 QSCBS 60,710,000 0.917 % 556,989 LOS ANGELES UNIF DS 2012 REFUNDING BOND SERIES A 27,435,000 0.917 % 251,705 LOS ANGELES UNIF DS 2014 REF BOND SERIES A 17,090,000 0.917 % 156,794 LOS ANGELES UNIF DS 2014 REF BOND SERIES B 20,480,000 0.917 % 187,895 LOS ANGELES UNIF DS 2014 REF BOND SERIES C 100,155,000 0.917 % 918,880 LOS ANGELES UNIF DS 2014 REF BOND SERIES D 713,850,000 0.917 % 6,549,276 LOS ANGELES UNIF DS 2015 REF BONDS SERIES A 95,430,000 0.917 % 875,530 LOS ANGELES UNIF DS 2008 SERIES A 2016 164,550,000 0.917 % 1,509,678 LOS ANGELES UNIF DS 2016 REF BONDS SERIES A 359,570,000 0.917 % 3,298,905 LOS ANGELES UNIF DS 2016 REF BONDS SERIES B 238,230,000 0.917 % 2,185,661 LOS ANGELES UNIF DS 2017 REF BONDS SER A PROP BB 498,240,000 0.917 % 4,571,144 LOS ANGELES UNIF DS 2017 REF BONDS SER A MEAS K 109,935,000 0.917 % 1,008,608 LOS ANGELES UNIF DS 2005 SERIES M 1 2018 921,240,000 0.917 % 8,451,993 LOS ANGELES UNIF DS 2008 SERIES B 1 2018 108,220,000 0.917 % 992,873 LOS ANGELES UNIF DS 2019 REF 2002 SER D MEAS K 1,007,820,000 0.917 % 9,246,328 LOS ANGELES UNIF DS 2019 REF 2004 SER I MEAS R 135,105,000 0.917 % 1,239,532 LOS ANGELES UNIF DS 2019 REF 2005 SER F MEAS Y 299,825,000 0.917 % 2,750,769 LOS ANGELES UNIF MEASURE R 2020 SERIES RYQ 81,115,000 0.917 % 744,196 LOS ANGELES UNIF MEASURE Y 2020 SERIES RYQ 29,955,000 0.917 % 274,825 LOS ANGELES UNIF MEASURE Q 2020 SERIES RYQ 151,450,000 0.917 % 1,389,491 LOS ANGELES UNIF DS MEASURE Q SER C 2020 603,245,000 0.917 % 5,534,521 LOS ANGELES UNIF 2020 REF A MEAS K 108,865,000 0.917 % 998,791 LOS ANGELES UNIF 2020 REF A MEAS R 108,375,000 0.917 % 994,295 LOS ANGELES UNIF 2020 REF A MEAS Y 74,215,000 0.917 % 680,892 LOS ANGELES UNIF 2021 REF A PROP BB 893,005,000 0.917 % 8,192,949 LOS ANGELES UNIF 2020 REF A MEAS Q 673,280,000 0.917 % 6,177,063 Total Overlapping Debt 14,701,165,780 0.917 % 127,911,066 Total Direct and Overlapping Debt 240,573,148$ (2)
Per
Ratios to 2020-21 Assessed Valuation Capita
-Direct Debt………….….…….

1.50% 1,879
-Overlapping Debt…….………

1.70% 2,134
-Total Debt……………………

3.20% 4,013
STATE SCHOOL BUILDING AID REPAYABLE AS OF 6/30/2022: $0 Source: HDL Coren & Cone, Los Angeles County Assessor's Office (1) Percentage of overlapping agency's assessed valuation located within boundaries of the City. (2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue, and tax allocation bonds, and non-bonded capital lease obligations.

City of Gardena
Direct and Overlapping Bonded Debt
June 30, 2022
195
21-22 20-21 19-20 18-19 17-18
Assessed valuation $7,508,508,782 $7,223,980,473 $6,800,580,594 $6,397,613,521 $6,005,395,708 Conversion percentage 25% 25% 25% 25% 25%
Adjusted assessed valuation 1,877,127,196 1,805,995,118 1,700,145,149 1,599,403,380 1,501,348,927 Debt limit percentage 15% 15% 15% 15% 15%
Debt limit $281,569,079 $270,899,268 $255,021,772 $239,910,507 $225,202,339 Total net debt applicable to limit:

General obligation bonds - - - - - Legal debt margin $281,569,079 $270,899,268 $255,021,772 $239,910,507 $225,202,339 Total debt applicable to the limit
as a percentage of debt limit - 0% - 0% - 0% - 0% - 0%
Section 43605 of the Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision was enacted when assessed valuation was based upon 25% OF MARKET VALUE. Effective with 1981-82 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The Computations shown above reflect a conversion of assessed valuation data for each fiscal year from current full valuation perspective to the 25% level that was in effect at the time the legal debt margin was enacted by the State of California for local governments located within the State.

Source: City of Gardena, Administrative Services Department - Finance Division Fiscal Year
City of Gardena
Legal Debt Margin Information
Last Ten Fiscal Years
196
16-17 15-16 14-15 13-14 12-13
Assessed valuation $5,686,952,300 $5,453, 097,097 $5,170,329,875 $4,957,766,359 $4,784,812,315 Conversion percentage 25% 25% 25% 25% 25%
Adjusted assessed valuation 1,421,738,075 1,363,274,274 1,292,582,469 1,239,441,590 1,196,203,079 Debt limit percentage 15% 15% 15% 15% 15%
Debt limit $213,260,711 $204,491, 141 $193,887,370 $185, 916,238 $179,430,462 Total net debt applicable to limit:

General obligation bonds -
-
-
-
-
L
egal debt margin $213,260,711 $204,491,141 $193,887,370 $185,916,238 $179,430,462 Total debt applicable to the limit
as a percentage of debt limit - 0%
- 0%
- 0%
- 0%
- 0%
S
ection 43605 of the Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision was enacted when assessed valuation was based upon 25% OF MARKET VALUE. Effective with 1981-82 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The Computations shown above reflect a conversion of assessed valuation data for each fiscal year from current full valuation perspective to the 25% level that was in effect at the time the legal debt margin was enacted by the State of California for local governments located within the State.

SOURCE: City of Gardena, Administrative Services Department - Finance Division City of Gardena
Legal Debt Margin Information (Continued)
Last Ten Fiscal Years
Fiscal Year
0 50
100
150
200
250
300
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 $179
$186
$194
$204
$213
$225
$240
$255
$271
$282
(in Million)
Fiscal Year
Legal Debt Margin
Last Ten Fiscal Years
197

FISCAL YEAR PRINCIPAL INTEREST TOTAL PRINCIPAL INTEREST TOTAL PRINCIPAL INTEREST TOTAL 2021-2022 585,000$ 437,509 $ 1,022,509 $ 65,000$ 440,934$ 505,934 $ 115,000$ 72,325$ 187,325 $ 2022-2023 625,000 398,910 1,023,910 65,000 438,366 503,366 120,000 66,575 186,575 2023-2024 665,000 357,759 1,022,759 70,000 435,799 505,799 125,000 60,575 185,575 2024-2025 705,000 314,056 1,019,056 70,000 433,034 503,034 130,000 54,325 184,325 2025-2026 750,000 267,641 1,017,641 75,000 429,709 504,709 135,000 47,825 182,825 2026-2027 800,000 218,196 1,018,196 75,000 426,148 501,148 145,000 41,075 186,075 2027-2028 850,000 165,561 1,015,561 80,000 422,586 502,586 155,000 33,825 188,825 2028-2029 905,000 109,577 1,014,577 85,000 418,787 503,787 160,000 25,881 185,881 2029-2030 965,000 49,924 1,014,924 815,000 414,750 1,229,750 170,000 17,681 187,681 2030-2031 300,000 9,570 309,570 1,175,000 374,000 1,549,000 175,000 8,969 183,969 2031-2032 1,235,000 315,250 1,550,250
2032-2033 1,295,000 253,500 1,548,500
2033-2034 1,355,000 188,750 1,543,750
2034-2035 1,430,000 121,000 1,551,000
2035-2036 990,000 49,500 1,039,500
2036-2037
2037-2038
2038-2039
2039-2040
2040-2041
TOTAL 7,150,000 2,328,700 9,478,700 8,880,000 5,162,112 14,042,112 1,430,000 429,056 1,859,056 City of Gardena
Debt Service Payment Schedule
2006 A REF COPS 2014 TAXABLE LEASE BONDS 2007A REV REF BONDS 198

FISCAL YEAR PRINCIPAL INTEREST TOTAL PRINCIPAL INTEREST TOTAL PRINCIPAL INTEREST TOTAL 2021-2022 280,000$ 14,594 $ 294,594 $ 2,995,000$ 2,972,825$ 5,967,825 $ 275,000 $ 331,216 $ 606,216 $ 2022-2023 280,000 8,798 288,798 3,665,000 2,938,951 6,603,951 440,000 498,000 938,000 2023-2024 285,000 2,950 287,950 4,210,000 2,891,196 7,101,196 465,000 476,000 941,000 2024-2025 4,800,000 2,827,962 7,627,962 490,000 452,750 942,750 2025-2026 5,075,000 2,746,266 7,821,266 510,000 428,250 938,250 2026-2027 5,175,000 2,641,416 7,816,416 540,000 402,750 942,750 2027-2028 5,295,000 2,518,976 7,813,976 565,000 375,750 940,750 2028-2029 5,440,000 2,377,970 7,817,970 595,000 347,500 942,500 2029-2030 5,590,000 2,227,663 7,817,663 620,000 317,750 937,750 2030-2031 5,750,000 2,067,621 7,817,621 655,000 286,750 941,750 2031-2032 5,920,000 1,897,249 7,817,249 685,000 254,000 939,000 2032-2033 6,105,000 1,714,143 7,819,143 715,000 226,600 941,600 2033-2034 6,295,000 1,521,042 7,816,042 740,000 198,000 938,000 2034-2035 6,500,000 1,315,636 7,815,636 765,000 175,800 940,800 2035-2036 6,720,000 1,097,041 7,817,041 790,000 152,850 942,850 2036-2037 6,975,000 838,052 7,813,052 810,000 129,150 939,150 2037-2038 7,245,000 569,236 7,814,236 835,000 104,850 939,850 2038-2039 7,525,000 290,014 7,815,014 860,000 79,800 939,800 2039-2040 885,000 54,000 939,000
2040-2041 915,000 27,450 942,450
TOTAL 845,000 26,341 871,341 101,280,000 35,453,259 136,733,259 13,155,000 5,319,216 18,474,216 City of Gardena
Debt Service Payment Schedule (Continued)
2017 DIRECT LEASE 2021 LEASE REVENUE BONDS
2020 TAXABLE PENSION

OBLIGATION BONDS
199

FISCAL YEAR PRINCIPAL INTEREST TOTAL
2021-2022 4,315,000$ 4,269,401 $ 8,584,401 $
2022-2023 5,195,000 4,349,599 9,544,599
2023-2024 5,820,000 4,224,278 10,044,278
2024-2025 6,195,000 4,082,126 10,277,126
2025-2026 6,545,000 3,919,691 10,464,691
2026-2027 6,735,000 3,729,585 10,464,585
2027-2028 6,945,000 3,516,698 10,461,698
2028-2029 7,185,000 3,279,715 10,464,715
2029-2030 8,160,000 3,027,768 11,187,768
2030-2031 8,055,000 2,746,910 10,801,910
2031-2032 7,840,000 2,466,499 10,306,499
2032-2033 8,115,000 2,194,243 10,309,243
2033-2034 8,390,000 1,907,792 10,297,792
2034-2035 8,695,000 1,612,436 10,307,436
2035-2036 8,500,000 1,299,391 9,799,391
2036-2037 7,785,000 967,202 8,752,202
2037-2038 8,080,000 674,086 8,754,086
2038-2039 8,385,000 369,814 8,754,814
2039-2040 885,000 54,000 939,000
2040-2041 915,000 27,450 942,450
TOTAL 132,740,000 48,718,684 181,458,684
City of Gardena
Debt Service Payment Schedule (Continued)

ANNUAL BOND OBLIGATIONS
200
City of City of Average Los Angeles Average Gardena Per Capita Gardena Gardena Gardena Annual County Annual Personal Personal LAUSD Gardena Unemployment Housing Population Percentage Population Percentage Income Income Enrollment Employment Rate Year Units (1) Increase (1) Increase (1,000s) (2) (2) (3) (4) (4) 2013 21,501 59,566 0.75% 9,958,091 0.74% 1,349,229 22,651 655,716 27,100 7.10% 2014 21,629 60,082 0.87% 10,041,797 0.84% 1,384,109 23,037 651,322 27,700 8.20% 2015 21,649 60,414 0.55% 10,136,559 0.94% 1,384,454 23,032 643,493 28,200 6.70% 2016 21,714 60,785 0.61% 10,400,000 2.60% 1,386,384 22,808 664,774 29,000 5.20% 2017 21,815 60,721 -0.11% 10,271,018 -1.24% 1,411,571 23,246 713,871 29,500 4.40% 2018 21,815 61,246 0.86% 10,163,507 -1.05% 1,444,440 23,584 694,096 29,300 4.80% 2019 22,092 61,042 -0.33% 10,105,518 -0.57% 1,482,260 24,282 673,849 29,000 4.70% 2020 22,137 60,937 -0.17% 10,079,000 -0.26% 1,583,855 25,991 464,731 24,900 4.50% 2021 22,371 60,344 -0.97% 10,044,458 -0.34% 1,651,792 27,372 628,468 27,400 9.80% 2022 22,761 59,947 -0.66% 9,861,224 -1.82% 1,691,219 28,211 565,479 27,900 4.80% NOTES:
(1) S tate of California, Finance Department.
(2) I ncome data was provided by HDL Coren & Cone using City of Gardena Average per Capita Personal Income. (3) S tudent Enrollment is from LAUSD website. LA USD does not have breakdown per City count. (4) Em ployment and Unemployment rates are provided by the EDD's Labor Market Information Division.

City of Gardena
Demographic and Economic Statistics
Last Ten Calendar Years
59,566
60,082
60,414
60,785
60,721
61,246
61,042
60,937
60,344
59,947
58,500
59,000
59,500
60,000
60,500
61,000
61,500
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Calendar Year
City of Gardena Population
Last Ten Calendar Years
201
2022* 2013
Percent of Percent of
Number of Total Number of Total
Employer Business Type Employees Employment Employees Employment United Parcel Service Inc. Delivery 789 2.83%
Gardena Memorial Hospital Hospital services 750 2.69%
Nissin Foods Company Manufacturing 550 1.97%
Hustler Casino Casino 465 1.67%
Air Fayre Airline caterers 289 1.04%
Avcorp Manufacturing parts 289 1.04%
Larry Flynt's Lucky Lady Casino Casino 245 0.88%
Southwest Offset Printing Book binding and printing 235 0.84% Kindred Hospital South Bay Hospital services 225 0.81%
Target Retail 200 0.72%
Gardena Memorial Hospital 735 2.71%
Hustler Casino 720 2.66%
United Parcel Service Inc. 678 2.50%
Hitco Carbon Composites, Inc. 505 1.86%
Normandie Club, LP 409 1.51%
Southwest Offset Printing 371 1.37%
Ramona's Mexican Food 240 0.89%
Nissin Foods Company 225 0.83%
Target 200 0.74%
Sam's Club 160 0.59%
Total top ten employers 4,037 4,243
Total City Employmen
t1
27,900 27,100
*Used 2020 employment data as 2022 was unavailable
NOTE: Non-Governmental Employers.

Several potential businesses that may qualify for Top 10 ranking. However, current employee counts were unattainable at the time of report preparation. Previous historical data is not available.

1Total City employment provided by EDD-Labor Market Information Division.

SOURCE: Economic Development Staff
City of Gardena
Ten Principal Employers
Current Year and Nine Years Ago
202
2022 2021 2020 2019 2018
Federal Unemployment Rate 3.5% 4.8% 8.4% 3.7% 4.0%
State Unemployment Rate 3.9 6.4 10.8 4.0 4.2
County Unemployment Rate 4.8 9.7 15.1 4.5 4.8
City Unemployment Rate 4.8 9.8 15.2 4.7 4.8
Source: State of California Employment Development Department; Los Angeles-Long Beach Metropolitan Statistical Area and United States Bureau of Labor Statistics.

Employment
Last Five Calendar Years
Unemployment Rates
City of Gardena
The following table shows unemployment information for the United States (the "Federal"), California (the "State"), Los Angeles County (the "County") and the City of Gardena (the "City") for calendar years 2018 through 2022. 203
Function 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 2013-14 2012-13 General government 120 115 151 181 209 186 181 181 181 168 Public safety 124 126 149 140 142 154 160 157 162 158
Public works 46 44 56 47 31 51 50 50 47 45
Community development 15 12 15 18 15 19 18 17 16 16
Transit - Bus line 141 136 165 148 140 140 144 147 143 145 Total 446 433 536 534 537 550 553 552 549 532
Source: City of Gardena, Administrative Services Department - Finance Division Fiscal Year
City of Gardena
Full-Time and Part-Time City Employees
by Function
Last Ten Fiscal Years
532
549
552
553
550
537
534
536
433
446
0 100
200
300
400
500
600
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 Fiscal Year
City of Gardena Employment
Last Ten Fiscal Years
204
Name of Union
Number of
Employees
Represented as of
June 30, 2022
Number of
Employees
Represented as of
June 30, 2021
Number of
Employees
Represented as of
June 30, 2020
Number of
Employees
Represented as of
June 30, 2019
Expiration of
Contract
Gardena Municipal Employees Association 224 220 253 273 6/30/2025 Gardena Management Employees Organization 19 21 19 19 6/30/2025 Gardena Police Officers Association 84 86 79 76 7/31/2024 Gardena Police Executive Association 6 6 7 10 N/A
333 333 358 378
Source: City of Gardena
City of Gardena
Employee Union Representation
205
Function 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 2013-14 2012-13 Police:

Arrests 1,674 1,547 1,761 2,183 2,901 2,642 2,423 4,499 3,251 3,333 Number of parking citations issued 20,293 30,000 27,568 29,868 29,254 23,145 22,665 11,203 24,622 26,615 Public works:

Street resurfacing (miles) 3.58 2.25 5.68 19.06 0.49 4.52 2.95 7.00 3.38 5.15 Traffic lights and signals 91 91 91 91 91 91 90 89 88 88 Parks and recreation:

Number of recreation classes 272 0 432 1,374 1,226 1,410 1,466 1,150 1,080 1,232 Number of facility rentals 584 0 53 1,977 1,112 1,222 1,221 1,164 1,072 876 Transit:

Number of customers served (1) 1,606,377 1,203,880 2,406,910 2,943,363 3,110,354 3,094,180 3,610,718 3,687,038 3,689,142 3,761,506 NOTE:
(1) Fiscal Year 2017-18 data includes Fixed Route and Demand Response customers. Prior Year data includes Fixed Route only.

Source: City of Gardena, Administrative Services Department City of Gardena
Operating Indicators
by Function
Last Ten Fiscal Years
Fiscal Year
206
Function 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 2013-14 2012-13 Police:

Stations 11111111 1 1
Public works:

Streets (miles)
-Two lanes street

83.0 83.0 83.0 83.0 83.0 83.0 83.0 83.0 83.0 83.0
-Four lanes street

25.0 25.0 25.0 25.0 25.0 25.0 25.0 50.0 50.0 50.0
-Alley

5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0
-Sidewalks
113.5 113.5 113.5 113.5 113.5 113.5 113.5 113.5 113.5 113.5 Street lights
-Edison maintenance (1) 3,250 3,337 3,337 3,392 3,327 3,321 3,350 3,319 3,181 3,229 -City maintenance
194 193 193 194 191 198 385 197 192 192
Traffic signals 69 69 69 69 69 69 70 69 68 68
Traffic signals (shared) 22 22 22 22 22 22 23 20 20 20
Parks and recreation:

Number of parks 66666666 6 6
Number of parkette 11111111 1 1
Number of municipal pool 11111111 1 1
Number of gymnasiums 22222222 2 2
Community center 11111111 1 1
Transit:

Stations 11111111 1 1
Bus stops 492 492 492 492 492 595 595 595 595 649
NOTES:
(1) Streetlights maintained by Southern California Edison Company.

Source: City of Gardena, Administrative Services Department - Finance Division City of Gardena
Capital Asset Statistics
by Function
Last Ten Fiscal Years
Fiscal Year
207

STATISTICAL SECTION
Fiscal Year 2021-22
(This page is intentionally left blank)
208
200 E. Sandpointe Avenue, Suite 600
Santa Ana, California 92707

REPORT ON INT

ERNAL 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 Honor
able Mayor and the Members of the City Council
of the City of Gardena
Gardena, California
We have audited, in accordance with the auditing standa rds generally accepted in the United States of America and the standards applicable to fi nancial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund informa tion of the City of Gardena, California (“City”), as of and for the year ended June 30, 2022, 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 8, 2022.

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

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assi gned 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 City’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 pur pose described in the first paragraph of this section and was not designed to identify all defici encies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, duri ng our audit we did not identify any defi ciencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

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