Gardena City Council
December 17, 2024

Include names of Accountable Executive &
Training & Safety Manager and Person who
Prepared the Plan; and DAR areas of
service.

TBD After
Adoption

Included Accountable Executive City title;
Updated Self Certification language;
Inserted date before City Council.

Updated language regarding PTASP
Renamed PTASP Committee to Policy and
identified members

Executive Summary & Authority sections

Included Safety Management System and
Components; and Chief Safety Officer
authorization; Annual information updated

duties according to Regulations; Annual
Update

Committee; Annual Update

scheduled

City of Gardena
Gardena City Council Meeting

AGENDA REPORT SUMMARY
Agenda Item No. 8.M
Section: CONSENT CALENDAR
Meeting Date: December 17,
2024

TO: THE HONORABLE MAYOR AND MEMBERS OF THE GARDENA CITY COUNCIL AGENDA TITLE:

Approve Agreement with the Los Angeles County Metropolitan Transportation Authority for the Zero Emission Transit Capital Program CONTACT: TRANSPORTATION
COUNCIL ACTION REQUIRED:

RECOMMENDATION AND STAFF SUMMARY:

With the passage of SB 125 in 2023, the California State Transportation Agency (CalSTA) is required to guide the distribution of funding to regional transportation planning agencies (like Metro), which have the flexibility to use the money to fund transit operating and capital improvements. The transportation budget trailer bill also established the $1.1 billion Zero Emission Transit Capital Program (ZETCP) to be allocated to such agencies on both population-based and revenue-based formulas to fund zero-emission transit equipment and operations.

In July 2024, the California State Transportation Agency (CalSTA) approved Metro’s SB 125 allocation package and disbursed funds to the region. As the County's regional transportation planning agency, Metro will receive these ZETCP funds. The Metro Board approved a Los Angeles County Regional Zero Emission Bus Procurement Policy and its Fund Allocation Plan which will allocate, by formula, these one-time funds to transit operators, like GTrans.

GTrans is eligible to receive $2,042,965 on a reimbursement basis under this program.

GTrans will use these funds in support of its recent purchase of zero emission buses, scheduled to arrive in late 2025.

Therefore, it is recommended that Council approve the agreement with the Los Angeles County Metropolitan Transportation Authority (Metro) for the Zero Emission Transit Capital Program.

FINANCIAL IMPACT/COST:

The Agreement for the Zero Emission Transit Capital Program will allocate GTrans $2,042,965 in one-time funds to use towards its recent zero-emission bus purchase. There is no impact to the General Fund.

ATTACHMENTS:

City of Gardena ZETCP MOU.pdf

APPROVED:
___________________________________
Clint Osorio, City Manager
MOU # MOUZET25GAR1000
1 MEMORANDUM OF UNDERSTANDING TO ALLOCATE PROPOSITION C 40% DISCRETIONARY FUNDS FOR THE LOS ANGELES COUNTY REGIONAL ZERO EMISSION TRANSIT CAPITAL PROGRAM (ZETCP) This Memorandum of Understanding (“MOU”) is entered into as of October 1, 2024, by and between the Los Angeles County Metropolitan Transportation Authority (“LACMTA”) and City of Gardena (“GRANTEE”). WHEREAS, on September 26, 2024, the LACMTA Board adopted the Los Angeles County Regional Zero Emission Bus Procurement Policy; and WHEREAS, the Board approved the Los Angeles County Regional Zero Emission Transit Capital Program (ZETCP)-Equivalent Fund Allocation Framework (“Framework”); andWHEREAS, Senate Bill (SB) 125 Zero Emission Transit Capital Program will allocate $320.6 million to Metro, as the county’s regional transportation planning agency, over four years beginning in 2024; andWHEREAS, the Board approved the advancement of the total four-year allocation of $49.84 million in Proposition C 40% Discretionary funds for Included and Eligible Transit Operators pursuant to the Framework as presented in Exhibit A; andWHEREAS, SB 125 ZETCP provides the flexibility to use the approved funds to fund transit operating and capital improvements; and WHEREAS, all SB 125 ZETCP eligible projects must demonstrate that they will achieve a reduction in greenhouse gas emissions; and WHEREAS, there are specific qualification requirement for use of ZETCP equivalent funds; and WHEREAS, the GRANTEE is an Eligible or Included Operator and desires to receive the fundsfrom LACMTA for the Los Angeles County Regional ZETCP; and WHEREAS, LACMTA and GRANTEE desire to agree to the terms and conditions of the grant of funds. NOW THEREFORE, in consideration of the mutual term and conditions contained herein, LACMTA and GRANTEE hereby agree as follows: ARTICLE 1 - TERM 1.1. This MOU will be in effect from October 1, 2024, through June 30, 2028, unless terminated earlier as provided herein.

MOU # MOUZET25GAR1000
2 1.2 During the term of this MOU, LACMTA and Grantee shall not pursuelegislation, legal or other actions to alter the LACMTA Board approved funding sources currently subject to formula allocations. ARTICLE 2 - ALLOCATION OF PROPOSITION C 40% DISCRETIONARY FUNDS AND INVOICE PROCEDURE2.1 Attached as Exhibit A is the board approved ZETCP-EQUIVALENT FUND ALLOCATIONS. GRANTEE shall receive two million and forty-two thousand nine hundred sixty-five dollars ($2,042,965) in FY25 only. GRANTEE agrees that the advanced allocation of funds allows for immediate use. LACMTA shall not be obligated to forward the funds for the ZETCP to GRANTEE until it receives an invoice, and the ZETCP Service Improvement Plan described in Article 3.1 below. 2.2 GRANTEE shall send LACMTA invoice(s) for the ZETCP funds in an amount consistent with the amount shown on the ZETCP-Equivalent Fund Allocation. LACMTA shall disburse funds for operating purposes monthly in equal portions. LACMTA shall disburse funds for capital purposes on a reimbursement basis. ARTICLE 3 - USE OF FUNDS 3.1 Included in Exhibit B are the required elements of the ZETCP-Equivalent Funds Service Improvement Plan. GRANTEE shall submit a service improvement plan along with their request for funds. Funds can be used for capital and/or operating expenses. If GRANTEE intends to use for both purposes, then the plan must show the assignment of funds between operating and capital. The plan should explain how these services will achieve a reduction in greenhouse gas emissions. The service improvement plan may be amended by Grantee in coordination with the LACMTA. 3.2 GRANTEE shall use the funds as described in the service improvement plan. ARTICLE 4 - AUDIT AND REPORTING REQUIREMENTS 4.1 GRANTEE agrees to establish and maintain proper accounting procedures and cash management records and documents in accordance with conditions defined by this MOU. GRANTEE shall maintain all documents and records related to the ZETCP and the use of the funds for three (3) years after the end of the fiscal year in which funds were expended. LACMTA may audit as provided herein up to three years after the end of the fiscal year within which the funds were expended. 4.2 By January 31, 2026, the GRANTEE shall submit to the LACMTA a completed TPM form including the use of the funds for operating transit service.

MOU # MOUZET25GAR1000
3 ARTICLE 5 – MISCELLANEOUS 5.1 This grant shall be a one-time grant subject to the terms and conditions agreed to herein. Except as otherwise provided in this MOU, the grant does not imply nor obligate any future funding commitment on the part of the LACMTA. 5.2 GRANTEE understands and agrees that in programming the funds and entering into this MOU, LACMTA is acting pursuant to its statutory authority and shall have no liability in connection with the use of these funds for public transit purposes or the projects or services described in the service improvement plan. GRANTEE shall fully indemnify, defend and hold the LACMTA, its directors, officers, employees and agents harmless from and against any liability and expenses, including without limitation, defense costs, any costs or liability on account of bodily injury, death or personal injury of any person or for damage to or loss of risk of property, any environmental obligation, legal fees and any claims for damages of any nature whatsoever arising out of (i) breach of GRANTEE’s obligations under this MOU; (ii) misuse of the funds by GRANTEE or its officers, agents, employees or subcontractors; (iii) any act or omission of the GRANTEE or its officers, agents, employees or subcontractors in the performance and/or provision of the services provided under this MOU, the service improvement plan and/or the ZETCP-Equivalent Funds. 5.3 GRANTEE agrees to comply with all applicable local, state and federal laws and regulations in the provision of public transit services and any services rendered for the ZETCP. 5.4 LACMTA reserves the right to terminate this MOU and withhold the funds if the LACMTA Board terminates the ZETCP or if it is determined that the GRANTEE has not complied with all the terms and conditions contained herein until GRANTEE is determined to be in compliance. 5.5 No amendment or modification to this MOU shall be binding upon either party unless such amendment or modification is in writing duly executed by both parties. This MOU shall not be amended or modified by any acts or conduct of the parties. 5.6 GRANTEE is not a contractor, agent or employee of the LACMTA. GRANTEE shall not represent itself as a contractor, agent or employee of the LACMTA and shall have no power to bind the LACMTA in contract or otherwise. 5.7 This MOU and the Exhibits constitutes the entire agreement between the parties with respect to the subject matter of this Agreement and supersedes all prior and contemporaneous agreements and understandings.

MOU # MOUZET25GAR1000
4 IN WITNESS WHEREOF, the parties hereto have caused this Memorandum of Understanding to be duly executed as of the dates below with all the formalities required by law. CITY OF GARDENA LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY By:___________________________ By:_____________________________ Tasha Cerda Stephanie N. Wiggins Mayor Chief Executive OfficerDate:__________________________ Date:___________________________APPROVED AS TO FORM: APPROVED AS TO FORM: Carmen Vasquez DAWYN R. HARRISON City Attorney County Counsel By:___________________________ By:___________________________ Date:_________________________ Date:_________________________ ATTEST: By:___________________________ Mina Semenza City Clerk Date:__________________________ 11/22/2024

Operators Total ZETCP AllocationIncluded Operators:Arcadia 128,657$ Claremont 45,161$Commerce 164,790$Culver City 2,085,360$Foothill Transit 9,889,646$Gardena 2,042,965$La Mirada 36,667$Long Beach 9,216,219$Montebello 3,168,129$Norwalk 1,209,474$Redondo Beach DR 22,932$Redondo Beach MB 287,949$ Santa Monica7,861,768$Torrance 2,423,023$Eligible Operators:Antelope Valley 2,499,459$Santa Clarita2,079,675$LADOT Local 3,686,505$LADOT Express 1,873,488$Foothill BSCP 1,117,544$Total Municipal Operators49,839,411$

ZETCP-EQUIVALENT FUND ALLOCATIONSEXHIBIT A

EXHIBIT B
1 ZERO EMISSION TRANSIT CAPITAL PROGRAM (ZETCP) - EQUIVALENT FUNDQUALIFICATION REQUIREMENTS,SERVICE IMPROVEMENT PLAN, FINAL REPORT, AND LAPSING REQUIREMENT QUALIFICATION REQUIREMENTS Senate Bill (SB) 125 Zero Emission Transit Capital Program (ZETCP) will allocate $320.6 million to Metro, as the county’s regional transportation planning agency, over four years beginning in 2024. The Metro Board of Directors approved the advancement of the total four-year allocation of $49.84 million in Proposition C 40% Discretionary funds for included and eligible transit operators to cover the provisions of ZETCP. SB 125 ZETCP provides the flexibility for operators to use the approved funds to fund transit operating and capital improvements. Transit Capital Transit operators must participate in Metro’s SB 125 ZETCP Regional Bus Procurement Program or equivalent multi-agency procurement. Project must meet Terms of FTA February 2024 “Dear Colleague” letter (attached) corresponding provisions for reduced customizations, standardized specifications, and milestone payments with testing and performance bond or other security. Project must also meet Clean Air Resource Board (CARB) Innovative Clean Transit (ICT) Regulations. Transit Operations Funds may be used for operations only after the operator has drawn down fully on federal COVID relief funding, including American Rescue Plan Act (ARPA) and Coronavirus Response and Relief Supplemental Appropriations (CRRSA) Act funding. SERVICE IMPROVEMENT PLAN Transit Capital Transit operator requesting to use allocation of ZETCP-Equivalent Fund for capital projects (Zero Emission Bus Purchases/Charging Infrastructure & other Zero Emission Vehicles used for transit service), shall submit the following for each project: 1. A summary or fact sheet that includes the following elements: a. Implementing agency or agencies. b. Project title.c. Dates for the start and end of each project phase.d. Summary of project scope. e. Total project costs, including identification of the amount of funding used for project management as budgeted for the agency or agencies involved.

EXHIBIT B
2 2. A detailed project schedule, including the project’s current status, and the completion dates of all major delivery milestones.3. Project location – provide a map for each of the following, where relevant: a.Project location denoting the project site and impacted transit lines.b. Planned and existing active transportation infrastructure. 4. An explanation of greenhouse gas reducing features of the project. 5. An explanation of expected ridership benefits of the project when constructed, if any.When requesting reimbursement for capital related expenses, operator must show proof of participation in Metro’s regional bus procurement or equivalent multi-agency procurement that meets corresponding provisions for reduced customizations and milestone or advanced payment. Transit Operations An operator that requests to use its allocation of ZETCP-Equivalent funding for transit operationsshall include the following information: 1. Operator’s total ridership for FY22-23. 2. Amount of funding requested. 3. List of specific activities funded by the request, quantified where possible:a. Amount of service being paid for by the additional funding expressed in both revenue service hours and by nature of service retention, restoration or increase invested in (e.g. preventing a reduction in frequency on one or more routes (or systemwide), frequency increases on particular routes or launch of new routes made possible by the funds). Costs involved in maintaining current operations may include those necessary for ensuring safety and state of good repair of the vehicles and infrastructure necessary to operate service and shall be identified with respect to the current service level they are protecting.b. Identification of operating expenses invested in increased safety and security measures.c. Identification of operating expenses that are intended to increase ridership, including those that fund actions to improve coordination of routes and schedules.4. Identification of benefits to transit dependent riders of activities funded by the request. Operators request for funding must include elements of the above information to receive their allocation of funds. Final ReportUpon project completion, the operator must submit a Final Report that describes the improvements funded with the ZETCP-Equivalent funds and an estimate of greenhouse gas emissions reduced as a result of the project. For capital projects, operator will provide digital photographs. For transit operations related expenses, operators will provide proof of overall service improvements implemented.

EXHIBIT B
3 LAPSING REQUIREMENTOperators have four years, that is the year of allocation plus three years, to spend the funds allocated through this ZETCP. Lapsed funds will revert to a joint municipal operator fund, which will be allocated proportionally to all other municipal operators.

PLANNING AND ENVIRONMENTAL

QUALITY COMMISSION
Regular PEQC Meeting Notice and Agenda
Website: www.cityofgardena.org
Tuesday, December 3, 2024 – 7:00 PM
Council Chamber at City Hall
1700 W. 162nd Street, Gardena, California

6. PUBLIC HEARING ITEMS

6.A Conditional Use Permit #6-24 and Site Plan Review #2-94 (Modification #4) The Planning Commission considered a request for a conditional use permit, per Section 18.46.030.C.23 of the Gardena Municipal Code, to allow for the continuation of an existing automobile service station and modification to an original site plan review for the remodel of the gasoline dispenser canopy and the addition of three gasoline pumps to the existing ARCO gasoline station located at 1001 West Artesia Boulevard, within in the General Commercial (C-3) zone.

Environmental Assessment Consideration: The proposed project was considered for a categorical exemption from the provisions of the CEQA pursuant to Guidelines Sections 15303 and 15332.

Project Location: 1001 West Artesia Boulevard (APN: 6111-022-033) Project Applicant: A&S Engineering / Abigail Jara

Hyperlinked Attachments:
• Staff Report CUP #6-24_MOD #4 SPR #2-94.pdf
• Resolution No. PC 17-24 (CUP6-24).pdf
o Exhibit A - Conditions of Approval.pdf
o Exhibit B - Project Plans.pdf
Commission Action: The Planning Commission approved Resolution No. PC 17-24, by a vote of 4-0, approving Modification #4 for Conditional Use Permit #6- 24 and Site Plan Review #2 -94, to allow the continuation of an existing automobile service station and modification to an original site plan review for the remodel of the gasoline dispenser cano py and the addition of three gasoline pumps, subject to the conditions of approval and directed staff to file a Notice of Exemption.

City Council Action: Receive and file OR call for review which requires two requests from the City Council.

Planning Commission Action Sheet
December 3, 2024
2 6.B Environmental Impact Report (Environmental Assessment #20-21); General Plan Amendment #3-21; Zone Change #4-21; Zone Text Amendment #6- 21; Specific Plan #1-21; Site Plan Review #11-21; Vesting Tentative Map #4-21; Development Agreement #2 -21, and Affordable Housing Agreement.

Project Location: 16829, 16835, 16907, and 16911 S. Normandie Avenue (APN:
6106-030-011, 015, 016, and 017)
Project Applicant: Fred Shaffer and Steve Ludwig – 16911 Normandie Associates, LLC
Other Project Locations: 16964 Brighton Avenue (APN: 6106-030-008) and unaddressed Union Pacific Railroad parcel (APN: 6106-030-800)

The Planning Commission reviewed a request for recommendation to the City Council for the entitlements needed to establish the Normandie Crossing Specific Plan. The plan proposes a 333 -unit residential development on a 5.25 -acre site, featuring a six-story apartment building with one below -grade parking level for 258 units, along with 75 three-story townhomes.

Environmental Assessment Consideration : Approval of these items requires certification of an Environmental Impact Report, adoption of a Mitigation Monitoring and Reporting Plan, and CEQA required findings, and a Statement of Overriding Considerations.

Hyperlinked Attachments:
• Staff Report.pdf
• Attachment A - PC Staff Report March 19, 2024.pdf
• Attachment B - Resolution No. PC No. 18-24.pdf
o Exhibit 1 - City Council CEQA Resolution with Exhibits.pdf • Attachment C - Draft Resolution No. PC 19-24.pdf
o Exhibit 1 - Draft City Council General Plan Amendment Resolution with Exhibits.pdf
• Attachment D - Draft Resolution No. PC 20-24.pdf
o Exhibit 1 - Draft City Council Ordinance for Project with Exhibit A.pdf ▪ Exhibit B - DRAFT Normandie Specific Plan.pdf
▪ Exhibit C - Project Plans.pdf
▪ Exhibit D - Conditions of Approval.pdf
▪ Exhibit E - Draft Development Agreement.pdf
▪ Exhibit F - Draft Affordable Housing Agreement.pdf
o Exhibit 2 - Draft City Council Resolution for Tentative Map.pdf ▪ Exhibit A - Vesting Tent. Tract Map No. 83922 - VTTM Civil Plans - 241104.pdf
▪ Exhibit B - Conditions of Approval.pdf
• Attachment E - Original Economic Analysis Study, December 2023.pdf • Attachment F - Revised Economic Analysis Memo, November 2024.pdf • Attachment G - Letters of Support from Local Businesses.pdf

Planning Commission Action Sheet
December 3, 2024
3 Commission Action : The Planning Commission made motions for the resolutions of the following:
• The Planning Commission approved Resolution No. PC 18-24, by a vote of 2- 1, recommending the City Council to certify the FEIR and adopt a Mitigation Monitoring and Reporting Program, Findings Relating to Alternatives and Mitigation Measures, and a Statemen t of Overriding Considerations for the purposes of the project; and
• The Planning Commission approved Resolution No. PC 19-24, by a vote of 3- 0, recommending the City Council to approve General Plan Amendment #3 - 21, for the Project and the changes to the two adjacent properties; and • The Planning Commission approved Resolution No. PC 20-24, by a vote of 2- 1, recommending the City Council approve Zone Change #4 -21, which includes the changes to the two adjacent properties; Zone Text Amendment #6-21; Specific Plan #1 -21; Vesting Tentative Map #4 -21; Site Plan Review #11-21; Development Agr eement #2-21; and Affordable Housing Agreement for the Project subject to the attached conditions of approval for the Community Input Alternative which responds to community concerns.

City Council Action: No action necessary. These items will be brought before the City Council on January 14, 2025.

6.C Zone Text Amendment #7-24 (Ordinance No. 1877)
Recommendation to the City Council on adoption of Ordinance No. 1877 amending the Gardena Municipal Code Chapter 18.66 and Section 18.36.020 relating to allowing non - storefront retail medicinal cannabis delivery services businesses in the M-1 and M-2 zoning districts.

Hyperlinked Attachments:
• Staff Report - Non-storefront Medical Cannabis Delivery.pdf • Attachment A - Resolution PC No. 21-24.pdf Exhibit A - Ordinance No. 1877.pdf • Attachment B - Public Notice.pdf
Commission Action: The Planning Commission approved Resolution No. PC 21-24, by a vote of 4-0, recommending the City Council adopt the Ordinance No. 1877, amending the Gardena Municipal Code Chapter 18.66 and Section

18.36.020 relating to allowing non -storefront retail medicinal cannabis delivery services businesses in the M-1 and M-2 zoning districts.

City Council Action: No action necessary. These items will be brought before the City Council on January 14, 2025.

To view the complete Planning Commission agenda packet, CLICK HERE.

City of Gardena
Gardena City Council Meeting

AGENDA REPORT SUMMARY
Agenda Item No. 12.A
Section: DEPARTMENTAL

ITEMS - ADMINISTRATIVE

SERVICES
Meeting Date: December 17,
2024

TO: THE HONORABLE MAYOR AND MEMBERS OF THE GARDENA CITY COUNCIL AGENDA TITLE:

City of Gardena Audit Reports for Fiscal Year Ended June 30, 2024; Annual Comprehensive Financial Report (ACFR) & GTrans Enterprise Fund Report COUNCIL ACTION REQUIRED:

Staff Recommendation: Receive and File Audit Reports for Fiscal Year Ended June 30, 2024
RECOMMENDATION AND STAFF SUMMARY:

Presented for the City Council to receive and file are the audited financial reports for the fiscal year ended June 30, 2024, as prepared by the City's contracted auditing firm, Gruber and Lopez, Inc., an independent public accounting firm fully licensed and qualified to perform audits of local governments in the State of California. The goal of the independent audit is to provide reasonable assurance that the financial statements of the City for the fiscal year ended June 30,2024, are free of material misstatement.

There were no findings in the audit of the financial statements.

Annual Comprehensive Financial Report (ACFR) for Fiscal Year Ended June 30, 2024 The financial statements included in the ACFR represent all City funds. City management is responsible for the accuracy of the data, the fairness and completeness of the presentation, and the inclusion of all disclosures that are necessary for the reader to understand the City's operations. The report contains a citywide view of all governmental and business-type activities, as well as a focus on the financial position and operating results of the City's major funds. The auditors issued an unmodified opinion that based upon their audit, the City's financial statements are presented fairly, as of June 30, 2024, and changes in the financial position and cash flows are in accordance with Generally Accepted Accounting Principles (GAAP) in the United States.

GTrans Enterprise Fund Report for Fiscal Year Ended June 30, 2024 The auditor issued an unmodified opinion that the financial statements are presented fairly, in all material respects, the financial position of GTrans as of June 30, 2024, and the results of its operations and cash flows for the year then ended in conformity with Generally Accepted Accounting Principles (GAAP) in the United States.

The City received the Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Associations (GFOA) for the City's ACFR for fiscal year ended June 30, 2023. The Certificate of Achievement is the highest form of recognition in the area of governmental accounting and financial reporting, and its attainment represents a significant accomplishment by a government and its management. This was the 38th consecutive year that the City has been recognized with this achievement. The City will be submitting the fiscal year ended June 30, 2024 ACFR; for the Certificate of Achievement for Excellence in Financial Reporting with GFOA by December 31, 2024.

The ACFR can be found on the City's website by visiting www.cityofgardena.org/city-budget/.

FINANCIAL IMPACT/COST:

No Financial Impact
ATTACHMENTS:

Gardena Annual Comprehensive Financial Report (ACFR) 2024 - Final.pdf GTrans Financial Report 2024 - Final.pdf

APPROVED:
___________________________________
Clint Osorio, City Manager

For Fiscal Year Ended June 30, 2024
Annual Comprehensive
Financial Report

CITY OF GARDENA
— California —
www.cityofgardena.org

ANNUAL

COMPREHENSIVE

FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2024

CITY OF GARDENA, CALIFORNIA

PREPARED BY

THE ADMINISTRATIVE SERVICES DEPARTMENT

Clint Osorio
City Manager
And
Raymond Beeman
Director of Administrative Services

* * * * * * * * * * * * * * * * * * * *

City of Gardena
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
Table of Contents

Page

INTRODUCTORY SECTION (Unaudited)
Letter of Transmittal ................................................................................................................................................ i GFOA Certificate of Achievement for Excellence in Financial Reporting .............................................................ix Organization Chart ................................................................................................................................................... x Commissions, Boards, Committees, Etc. ................................................................................................................xi Officials of the City of Gardena, California .......................................................................................................... xii

FINANCIAL SECTION
Independent Auditors’ Report on the Financial Statements .............................................................................. 1 Management’s Discussion and Analysis (Required Supplementary Information) (Unaudited) ...................... 5 Basic Financial Statements:

Government-Wide Financial Statements:

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

Governmental Fund Financial Statements:

Balance Sheet ..................................................................................................................................... 28 Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position .................................................................... 31 Statement of Revenues, Expenditures, and Changes in Fund Balances .............................................. 32 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 .................................... 34 Proprietary Fund Financial Statements:

Statement of Net Position ................................................................................................................... 36 Statement of Revenues, Expenses, and Changes in Net Position ....................................................... 39 Statement of Cash Flows .................................................................................................................... 40 Index to Notes to the Basic Financial Statements ............................................................................................ 45 Notes to the Basic Financial Statements .......................................................................................................... 47 City of Gardena
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
Table of Contents (Continued)

Page
FINANCIAL SECTION (Continued)
Required Supplementary Information (Unaudited):

Budgetary Comparison Schedule – General Fund ......................................................................................... 101 Budgetary Comparison Schedule – Economic Development Grants Special Revenue Fund ........................ 102 Notes to the Budgetary Comparison Schedule .............................................................................................. 103 Schedule of Changes in Net Pension Liability and Related Ratios – CalPERS Miscellaneous Plan ............. 104 Schedule of City’s Proportionate Share of the Net Pension Liability and Related Ratios – CalPERS Safety Plan. ........................................................................................... 106 Schedule of Contributions – Pensions –
CalPERS Miscellaneous Plan ................................................................................................................. 107 CalPERS Safety Plan .............................................................................................................................. 108 Schedule of Changes in Net OPEB Liability and Related Ratios:

Governmental Activities Retiree Healthcare Plan ................................................................................... 109 GTrans Retiree Healthcare Plan .............................................................................................................. 111 Sewer Retiree Healthcare Plan ................................................................................................................ 113 Schedule of Contributions – Other Postemployment Benefits Plans:

Governmental Activities Retiree Healthcare Plan ................................................................................... 115 GTrans Retiree Healthcare Plan .............................................................................................................. 116 Sewer Retiree Healthcare Plan ................................................................................................................ 117 Supplementary Information:

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

City Capital Projects Fund. ..................................................................................................................... 120 Nonmajor Governmental Funds:

Combining Balance Sheet ....................................................................................................................... 124 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ............................... 126 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual:

Consolidated Lighting District Special Revenue Fund ..................................................................... 128 Prop C Local Return Special Revenue Fund .................................................................................... 129 Gas Tax Special Revenue Fund ........................................................................................................ 130 Asset Forfeiture Special Revenue Fund ........................................................................................... 131 Public Safety Grants Special Revenue Fund .................................................................................... 132 Public Works Grants Special Revenue Fund .................................................................................... 133 Human Services Grants Special Revenue Fund ................................................................................ 134 Community Development Block Grant (CDBG) Special Revenue Fund ......................................... 135 American Rescue Plan Special Revenue Fund ................................................................................. 136 All Debt Service Funds:

Combining Statement of Balance Sheet .................................................................................................. 139 Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances ................................. 141 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual:
2006 Refunding COPs, Series A Debt Service Fund ........................................................................ 143 2007 Refunding Revenue Bonds SBRPCA Debt Service Fund........................................................ 144 2014 Taxable Lease Revenue Refunding Bonds Debt Service Fund ................................................ 145 2017 Lease Financing Bonds - Debt Service Fund ........................................................................... 146 2020 Taxable Pension Obligation Bonds - Debt Service Fund ......................................................... 147 2021 Lease Revenue Bonds .............................................................................................................. 148 City of Gardena
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
Table of Contents (Continued)

Page
Supplementary Information (Continued):

Internal Service Funds:

Combining Statement of Net Position .................................................................................................... 151 Combining Statement of Revenues, Expenses and Changes in Net Position ......................................... 152 Combining Statement of Cash Flows ..................................................................................................... 153 STATISTICAL SECTION (Unaudited)
Net Position by Component ................................................................................................................................. 160 Changes in Net Position ....................................................................................................................................... 162 Fund Balances of Governmental Funds ............................................................................................................... 166 Changes in Fund Balances – Governmental Funds .............................................................................................. 168 Governmental Revenues by Sources .................................................................................................................... 170 General Governmental Expenditures by Function ............................................................................................... 172 Assessed Valuation and Actual Value of Taxable Property ................................................................................. 174 Assessed Value of Property by User Code ........................................................................................................... 176 Assessed Value and Estimated Value of Taxable Property .................................................................................. 178 Construction and Bank Deposits .......................................................................................................................... 180 Property Tax Rates – All Overlapping Governments ........................................................................................... 182 Direct and Overlapping Property Tax Rates ........................................................................................................ 184 Ten Largest Property Taxpayers .......................................................................................................................... 186 Top 25 Sales Tax Producers ................................................................................................................................. 187 Property Tax Levies, Tax Collections, and Delinquency ..................................................................................... 188 Card Club Gross Revenue Fee ............................................................................................................................. 189 Utility Users Tax Received .................................................................................................................................. 190 Taxable Sales by Category ................................................................................................................................... 191 Ratio of Outstanding Debt by Type ..................................................................................................................... 192 Pledged-Revenue Coverage ................................................................................................................................. 194 Ratio of General Bonded Debt Outstanding ......................................................................................................... 195 Direct and Overlapping Bonded Debt .................................................................................................................. 196 Legal Debt Margin Information ........................................................................................................................... 197 Debt Service Payment Schedule .......................................................................................................................... 199 Demographic and Economic Statistics ................................................................................................................. 202 Ten Principal Employers ...................................................................................................................................... 203 Unemployment Rates ........................................................................................................................................... 204 Full-Time and Part-Time City Employees by Function ....................................................................................... 205 Employee Union Representation .......................................................................................................................... 206 Operating Indicators by Function ......................................................................................................................... 207 Capital Asset Statistics by Function ..................................................................................................................... 208 Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards .............................................................. 210

City of Gardena
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024

(This page is intentionally left blank)
December 12, 2024
Members of the City Council,
and Citizens of Gardena

ANNUAL COMPREHENSIVE FINANCIAL REPORT
FISCAL YEAR 2023-2024

LETTER OF TRANSMITTAL
It is our pleasure to submit the Annual Comprehensive Financial Report (ACFR) of the City of Gardena (the City) for the fiscal year ended June 30, 2024 (FY 2023-24). The report is intended to update readers on the status of the City’s financial position and results of operations for the past fiscal year.

Management assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive framework of internal control that it has established for this purpose. Because the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements. This ACFR has been prepared in accordance with Generally Accepted Accounting Principles (GAAP) in the United States of America as promulgated by the Government Accounting Standards Board (GASB).

The report contains a Citywide view of all governmental and business-type activities, as well as a focus on the financial position and operating results of the City’s major funds.

The City’s financial statements have been audited by Gruber and Lopez, Inc., an independent public accounting firm fully licensed and qualified to perform audits of the State and local governments within the State of California. The financial statements included in this ACFR represent all City funds.

The goal of the independent audit is to provide reasonable assurance that the financial statements of the City for the fiscal year ended June 30, 2024, are free of material misstatement. The auditors concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the City’s financial statements for the fiscal year ended June 30, 2024, were fairly presented in conformity with GAAP. The independent auditor’s report is presented as the first component of the financial section of the ACFR. Management’s Discussion and Analysis (MD&A) immediately follows the independent auditor’s report and provides a narrative introduction, overview, and analysis of the basic financial statements. The MD&A complements this letter of transmittal and should be read in conjunction with it.
i

PROFILE OF THE GOVERNMENT
The City of Gardena is located just 5 miles from the beautiful California coast, near the interchange of the Harbor, San Diego, and Gardena freeways, and just 13 miles south of the City of Los Angeles, in the South Bay Area. Gardena is a part of the Los Angeles-Long Beach-Glendale Metropolitan Statistical Area.

Gardena has the singular distinction of having within its borders both the first legal card club licensed in the State of California, granted in 1936, and the newest club in the state, which opened in 2000. At one time only five-card draw and lowball poker could be played. During the 1960s, Gardena was the only City in Los Angeles County to have legal gambling. In the mid-1980s, a tremendous Asian influence arrived with the introduction of a number of California games. A complete listing is contained in the City of Gardena Resolution No. 6581.

The City of Gardena, incorporated on September 11, 1930 as a general law City, operates under the Council-Manager form of government. Policy-making and legislative authority are vested in a governing council consisting of four members of the City Council and a Mayor elected on a non- partisan basis at-large for four-year terms, with an election every two years. The Council is responsible for, among other things, establishing policy, passing ordinances, adopting an annual budget, appointing members to various City Commissions and Boards and hiring the City Manager and City Attorney. The City Manager is responsible for carrying out the policies and ordinances of the City Council, for overseeing the day-to-day operations of the government, and for appointing the heads of the various departments.

Gardena offers a full range of municipal services, including police and code enforcement; recreation and human services; public works; streets and parks; planning and building services; engineering; transportation services (enterprise fund); and general administration. Fire services are contracted with Los Angeles County.

BUDGET PROCESS
The City is required to adopt an initial budget for the fiscal year no later than June 30 preceding the beginning of the fiscal year on July 1. This annual budget serves as the foundation for the City of Gardena’s financial planning and control. The budget is prepared by fund, function (e.g. public safety), and department (e.g., police). Department heads may transfer resources within a department as they see fit. The City of Gardena adopts biennial budget, but the second fiscal year is being adopted in the subsequent fiscal year in the same manner and process.

The City’s annual budget process commences in February with the distribution of the updated Budget Manual that details the City’s general budgetary policy and the specific goals and objectives for the upcoming fiscal year. Departments are given specific instructions and timelines, the City’s chart of accounts, a rate schedule for apportioned costs such as liability and health insurance, and budget forms and formats.

The Director of Administrative Services, in coordination with all operating departments, provides the City Manager with proposed revenue projections. These revenue estimates are reviewed with the department budget requests to determine available funding levels for the fiscal ii
year. Supplemental requests for new personnel, services or capital/equipment purchases are subject to City Manager review and approval before becoming part of the proposed operating budget. This process applies to all governmental and enterprise funds.

The City Manager and Director of Administrative Services meet with the Department Heads to review all operating expenditures, budget change requests, department’s goals and programs for the upcoming fiscal year. After this final review and approval by the City Manager, a proposed budget will be presented to the Finance Committee for review and recommendation.

Budget study sessions and a public hearing are then presented to the City Council in May. A separate community budget forum will follow to present the proposed budget and address questions from the stakeholders. Then the budget is adopted by a resolution prior to June 30.

Throughout the fiscal year, actual expenditures and revenues are being presented to the Finance Committee for review on a quarterly basis. The budget can be amended as necessary to meet the City’s needs during the fiscal year. The City Council has the legal authority to amend the budget at any time. Department Heads may only authorize expenditures based on appropriations approved by City Council. Actual expenditures may exceed budget appropriations by line-item.

However, total expenditures within each fund may not exceed the total appropriation for that fund. The City Manager has the authority and discretion to approve interdepartmental appropriation transfers if they are within the same fund.

LOCAL ECONOMIC CONDITIONS AND OUTLOOK
The information presented in the financial statements, is perhaps best understood when considered from the broader perspective of the current economic environment in which the City of Gardena operates. It is important to consider various shifts in the national economy including the lowering of interest rates and the potential slowdown in consumer spending.

As the national inflationary pressure lowers and unemployment rate increases slightly, the Fed has signaled its intention to sharply lower the interest rates in the near term. While lowering the interest rate will negatively affect the City’s investment income long-term, it will also encourage future business expansion due to the cost of financing.

The General Fund revenues have shown stability in FY 2023-24 as sales tax, property tax, utility users’ tax, and vehicle license fees continue to show resilience and recovery. The top 5 sources of General Fund revenue account for 71.5% or $62 million. The remaining revenues account for

28.5% of the total and are represented by a broad range of sources. iii
Sales Tax
Sales Tax represents the single largest source of General Fund revenue at $28.1 million or 32.3%.

It is made up of the 7 categories below. The general retail category includes department stores, gas stations, general merchandise, restaurants, and hotels. General retail is the largest economic sector which generates 39% of the sales tax for Gardena. For fiscal year 2023-24, actual sales tax exceeds budget by 3.3% or $905,117. Overall, the City of Gardena’s sales per capita is higher than Los Angeles County average and consistently outperforms projections, a strong indicator of a vibrant local economy and strong business support.

32.3%

11.7%

10.3%9.8%

7.4%

28.5%
General Fund Revenues by Source
Fiscal Year Ended June 30, 2024
Sales Tax
Property Tax
Card Clubs Tax
Vehicle License Fee
Utility User Tax
Other

39.3%

15.6%

15.6%

6.7%

5.0% 17.8%
Sales Tax by Economic Categories
Fiscal Year Ended June 30, 2024
General Retails
Autos & Transportation
Building & Construction
Business & Industry
Food & Drugs
State & County Pool
iv
Property Tax
Gardena has a diverse land use for its 6 square miles. The City has a total assessed valuation of $8.65B. Of the City’s 14,829 parcels, 64.8% are residential, 27.6% are commercial/industrial and the remaining 7.6% for other miscellaneous uses.

Property tax is the second highest source of General Fund revenue at 11.7% or $10.1 million. The year-over-year increase of 2% and 1.6% over the budget amount from increased assessment value and recent developments in the City. Overall, the City and the South Bay region are experiencing an increase in housing prices.

Card Club Tax
City of Gardena is fortunate to have two card clubs within the City limits, Lucky Lady Casino and Hustler Casino. The City receives 12% of the gross revenue from both casinos. For the fiscal year 2023-24, the City collected card club tax of $8.9 million or 10.3% of General Fund revenue. This reflects a decrease of 3.1% or $283,143 vs the budgeted amount.

Vehicle License Fee (VLF)
The City receives $8.5 million or 9.8% of the General Fund revenue. This is the fourth largest source of General Fund revenue.

When a vehicle is registered in California, a license fee is charged by the State of California. This fee includes a small administrative fee and a property tax in-lieu fee. This in-lieu fee is allocated to cities and counties based on a per capita basis.

In 2005, the VLF was permanently reduced to 0.65% from 2.0% of the vehicle’s fair market value.

Any loss to cities by this rate reduction at that time was made up with an allocation from the County’s Educational Revenue Augmentation Fund property tax account. This allocation will grow with any corresponding growth in the City’s secured property tax valuation.

Utility User Tax (UUT)
The Utility User Tax revenue received by the City is based on adopted ordinances. The current UUT rate is 5% for telecommunications (wired and wireless), electricity, gas, and water. Effective in 2016, the UUT rate for prepaid wireless is 3.5%.

For the fiscal year, the City received $6.4 million or 7.4% of the total General Fund revenue. This is an increase of $442,031 or 7.4% when compared to the budget. The main factor for the increase is due to higher utility prices and increased usage from the recent extreme weather.

Overall, the total General Fund revenue increased by 5.9% or $4.9 million. This modest increase is mainly attributed to the revenue increase of $1.6 million for use of money & property from higher interest income and increase in sales tax revenue, an indicative of a healthy local economic condition.
v

LONG-TERM FINANCIAL PLANNING AND MAJOR INITIATIVES
The City Council has always been and continues to take a conservative approach in maintaining a strong financial position by limiting the growth of spending and acquiring additional debt. The City utilizes long-term financial forecast to make financial decisions, identifying opportunities for new revenues, enhancement of existing revenues, and exploration of potential funding options to support deferred maintenance to address the aging infrastructure throughout the City.

While maintaining the General Fund Reserve balance above the 25% threshold, the City adopted budget for fiscal year 2024-25 and fiscal year 2025-26 added a total of 16.45 Full-Time Equivalent positions to the City’s staffing resources, as well as investments in seniors, youth and community service programs and the largest Capital Improvement Program budget in the City’s history at $71.5 million.

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, 2024. The City’s issuer ratings are “AA- with S&P and “Aa3” with Moody’s. Which is reflective of a stable fiscal outlook and the expectation that Gardena will continue to maintain balanced operational costs with substantial fiscal reserves.

Aligning with the City’s vision of making Gardena as one of the most desired communities to live, do business, work, and play in the South Bay region, the adopted budget reflects the additional investments in maintaining a safe community environment as well as continue street and sidewalk improvements Citywide. To uphold its status as the “Most Business-Friendly City” in Los Angeles County as awarded by the Los Angeles County Economic Development Corporation (LAEDC) in 2022, the City continues to invest in streamlining the permitting process.

To further the City’s vision, in 2021 the City took a proactive approach to take advantage of the historical low interest rates and used its excellent issuer credit rating of AA- with S & P to obtain a Lease Revenue Bond in the amount of $15 Million dollars with a 20-year term at 1.98% true interest cost over the life of the bond. These bonds will be used to fund various capital projects including the Gardena Community Aquatic & Senior Center, a multigenerational community building to provide public access and recreational activities to residents.

CAPITAL IMPROVEMENT PROJECTS
The City continues to devote significant resources to maintenance and improvement of its top rated streets and roads. Gardena’s current street pavement condition index (PCI) of 81 is one of the highest in California.

Most of the projects are multi-year projects so at the end of the fiscal year 2023-24 only 9 budgeted projects were completed. Seven street projects were completed including the Budlong Ave & Halldale Ave Street Improvement which significantly improves existing and future traffic conditions.

Significant progress has been made with the two community projects. The Community Aquatic & Senior Center project is moving forward to the construction phase with the target completion date of Fall 2025. As for the Mas Fukai Park building, the initial design has been approved by the City Council and construction will begin starting fiscal year 2024-25. vi
In June 2024, the City adopted its Fiscal Year 2023-24 CIP budget of $71.5 million, the single largest fiscal year CIP budget in the City’s history. With $38.4 million of the CIP budget for park and facility projects including the construction of the Community Aquatic & Senior Center. $43.2 million for street, road, and storm drain improvement projects, including $3.7M for the Artesia Boulevard Traffic Signal Improvement project. This project will significantly address existing and future traffic conditions as well as improving landscape on a major City’s corridor.

PENSION & OPEB STABILIZATION FUNDS
To address the raising pension liability, the City issued $101 million in Taxable Pension Obligation Bonds in 2020 at 3.29% to save the City $51 million over the 19-year life of the bond.

The City also adopted an Unfunded Accrued Liability (UAL) Policy to address future pension liability. Under this policy, UAL Funds were created so each fiscal year the City must budget a contribution toward future pension liability. As of June 30, 2024, these funds have a balance of $5.97 million.

With the desire to address Other Post-Employment Benefits (OPEB) liability and take advantage of higher interest yields, in 2017 the City established the California Employers’ Retiree Benefit Trust (CERBT) accounts, IRC Section 115 Trust Accounts, with CalPERS. During the fiscal year 2023-24, the City made a $750,000 contribution to the trust. As of June 30, 2024, the City’s CERBT trust has a combined balance of $8.7 million, $2.9 million from the City and $5.8 million from GTrans’ CERBT account.

CASH MANAGEMENT
The City manages a pooled investment program for all funds in which temporarily idle cash is invested in a variety of instruments. The investment program is managed in accordance with the Investment Policy approved by the City Council on an annual basis. Safety, liquidity, and yield, in that order, are the objectives of the investment program. Investments are diversified among investment tools including certificates of deposit, Federal agency securities, State of California Local Agency Investment Fund (LAIF), corporate medium-term notes, money market mutual funds, California Asset Management Program (CAMP) Pool.

At the fiscal year end on June 30, 2024, the City had a total investment portfolio of $93.7 million.

Almost half of the portfolio is with CAMP, which is completely liquid and increased investment earnings substantially. The investment report is presented to City Council for review and approval monthly. It is also made available on the Financial Transparency Dashboard at www.cityofgardena.org.

RISK MANAGEMENT
The City maintains self-insurance programs for worker’s compensation and general liability insurance up to a maximum of $750,000 per occurrence. General liability claims that exceed the Self-Insured Retention (SIR) are covered by Public Risk Innovatin Solutions Management (PRISM). Worker’s compensation claims that exceed the SIR are insured by PRISM up to the vii
California statutory limits for workers' compensation. For the City's transit department, GT rans, the SIR is $250,000 and is being covered by California Transit Indemnity Pool (CalTIP).

The City is self-insured for its PPO Health Benefits Plan and carries stop-loss insurance on individual health benefit claims in excess of $100,000 for all members. The City contracts with a third party administrator who manage the claims filed against the City.

AWARDS and ACKNOWLEDGEMENTS
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Gardena for its ACFR for the fiscal year ended June 30, 2023. This was the thirty-eighth consecutive year that the government has achieved this prestigious award. In order to be awarded a Certificate of Achievement, the government had to publish an easily readable and efficiently organized ACFR that satisfied both generally accepted accounting principles and applicable program requirements.

A Certificate of Achievement for Excellence in Financial Reporting is valid for a period of one year only. However, we believe that our current ACFR continues to meet the Certificate of Achievement for Excellence in Financial Reporting Program's requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate.

The City also received the Distinguished Budget Presentation Award from GFOA for its recent biennial adopted budget fiscal year 2024-25 & 2025-26. This is the fourth consecutive budget cycle or eight years the City has received this award for preparing budget documents of the highest quality that reflect best practices in governmental budgeting.

The preparation of this report could not have been accomplished without the collaborative assistance of the Department Heads and staff in all City departments. First and foremost, we want to recognize the dedicated employees of the Administrative Services Department. Their professional expertise and unassuming commitment to excellence is constantly manifested in the quality of the City's financial records and reporting. Appreciation is also expressed to the audit staff of Gruber and Lopez, Inc. for their advice and assistance in the preparation of this report.

Finally, we would like to thank the members of the City Council for their support in planning and conducting the financial operations of the City in a responsible and progressive manner.

Respectfully submitted,
�
Clint D. Osorio, MPA
City Manager
Respectfully submitted,
�-----­-
Ray Beeman, CPA
Director of Administrative Services
viii
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Gardena
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2023
Executive Director/CEO
ix

CITY OF GARDENA ORGANIZATION CHART

CITIZENS OF GARDENA
CITY
CLERK
(Elected)

MAYOR & CITY

COUNCIL
(Elected)
CITY

TREASURER
(Elected)
CITY

MANAGER
(Appointed)
Elected &
Executive Offices
– Legislation
– Public Information
– C
ommunication
Serv
ices
– Strategic Planning
– Elections
– Public Policy Support
– O
rganizational
Leadership &
Dev
elopment
Transportation
(Enterprise Fund)
GTRANS
– Administrative
– Transportation
– Maintenance
– Vehicle Maintenance
– Special Transit
Police
– Operations
– Support Serv
ices

– Patrol Bureau
– Detective Bureau
– Special Investigations
– Transit Security
– Parking Enforcement
– Juv
enile Justice and
Interv
ention Program
Contracted
Services
– Los Angeles County
Consolidated Fire
Protection District
– SBRPCA –
Emergency Dispatch
CITY

ATTORNEY
(Contracted)
Commissions
& Committees
Public Works
– Street Maintenance
– Traffic Signals
and
Signs
–
Sanitation
– Equipment
Maintenance
–
Engineering
– Sewer Maintenance
– Buildings/Facility
Maintenance
– Parks Maintenance
and Special
Projects
– Civic Center
Grounds
–
Tree TrimmingAdministrative Services
– Grants Administration
– Financial Services
– Purchasing/Contract
Management
– Information Systems
– Cable Television/Public Access
–P a y r o l l
– Budget
– Audits
– Human Resources
– Risk Management
– Investment Management
Community Development
– Inspections
– Building Services
– Permits and Licenses
– Planning and Special Studies
– Development Services
– Building and
Entitlement
Records
–
Animal Control
– Economic Development
– Code Enforcement
– R
esidential Rehabilitation
Program
Recreation &
Human Services
– Youth and Family
Services
– Senior Citizens
– S
ocialization
Center
–
Emergency
Services
– Sports and
Aquatics
–
Developmentally
Disabled
– Special Events
Classes
–
Recreation and
Leisure Activ
ities
– Custodial
Serv
ices
x

CITY OF GARDENA
COMMISSIONS, BOARDS, COMMITTEES, ETC.

MAYOR & CITY

COUNCIL
(Elected)
Human Services
Commission
Gardena Youth
Commission
Recreation and
Parks Commission
Planning &
Environmental
Quality
Commission
Senior Citizens
Commission

APPOINTED

COMMISSIONS
Board of Appeals
Gardena
Rent Mediation
Board
City of Gardena
Financing
Agency
Housing Appeals
Board

AGENCIES/
BOARDS
Gardena Police
Foundation

NON-APPOINTED

COMMITTEES/

ASSOCIATIONS
Charitable Fund
Benefiting Gardena
Board
Gardena Sister City
Association
Gardena Valley
Affiliated Committee
on Aging
Gardena Economic
Business Advisory
Council

APPOINTED

ADVISORY
GROUPS
Gardena Traffic
Committee
Gardena Finance
Committee
Gardena
Beautification
Committee
xi

ELECTED OFFICIALS & EXECUTIVE STAFF
FISCAL YEAR 2023-2024

CITY OF GARDENA
ELECTED OFFICIALS .

Mayor………………………………………………………………… ..Tasha Cer
da
Mayor Pro Tem……………………………………………… .... Rodney G. Tanaka
Councilmember……………………………………………… ... Mark E. Henderson
Councilmember………………………………………………… Paulette C. Francis
Councilmember…………………………………………… …………...Wanda Love
City Clerk………………………………………… ………………… Mina Semenza
City Treasurer………………………… ……………………………… Guy H. Mato
EXECUTIVE STAFF & ADMINISTRATION OFFICIALS .

City Man
ager ......................................................................................... Clint Osorio City Attorney ................................................................................. Carmen Vasquez Chief of Police .................................................................................. Michael Saffell Director of Administrative Services ..................................................... Ray Beeman Director of Community Development ………………………..... ...... Greg Tsujiuchi Director of Public Works ......................................................................... Allan Rigg Director of Recreation and Human Services ................................... Stephany Santin Director of Transportation .................................................................... Ernie Crespo Assistant Fire Chief – LA County Fire District ...................................... Brian Kane xii

INDEPENDENT AUDITORS’ REPORT

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

Report on the Audit of the Financial Statements
Opinions

We have audited the accompanying financ ial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Gardena, California (the “City”), as of and for the year ended June 30, 2024 , and the related notes to the basic fi nancial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the bus iness-type activities, each major fund, and the aggregate remaining fund information of the City , as of June 30, 2024, and the respect ive changes in financial position and, where applicable, cash flows thereof fo r the year then ended in accordance with accounting principles generally accepted in the United States of America.

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

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

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

438 Old Newport Blvd – Newport Beach, CA 92663
Phone (949) 346-2900 – www.gruberlopezinc.com
1 To the Honorable Mayor and the Members of the City Council of the City of Gardena
Gardena, California

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, a nd 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 GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, fo rgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are consider ed material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS and Government Auditing Standards, we:

 exercise professional judgment and maintain professional skepticism throughout the audit.  identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures 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 control relevant to the audit in order 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 – General Fund and Major Sp ecial 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, th e Schedules of Contributions – 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 financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential pa rt 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 manageme nt’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 Supplementary Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statemen ts. The combining and individual nonma jor fund financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and w as derived from and relates directly to the underlying accounting and other records used to prepare the basic fina ncial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and cer tain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic fina ncial statements themselves, and other additional procedures in accordance with GAAS and Government Auditing Standards . In our opinion, the combining and individual nonmajor fund financial statements are fairly stated, in al l material respects, in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the ot her information included in the annual report. The other information comprises the introductory and the 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 wo rk 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 10, 2024, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and ot her matters. The purpose of that report is solely to describe the scope of our testing of inte rnal control over financial re porting and compliance and the results of that testing, and not to provi de 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.

GRUBER AND LOPEZ, INC.

Newport Beach, California
December 10, 2024

4 City of Gardena

Annual Comprehensive Financial Report
For the Year Ended June 30, 2024

(This page is intentionally left blank)
5 City of Gardena
Management’s Discussion and Analysis (Unaudited)

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, 2024. We encourage readers to consider the informatio n presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found in the introductory section of this report, as well as with the City’s financial statements, which follow this discussion.

Financial Highlights
 The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of the 2023-2024 fiscal year by $22,504,270 , which resulted in the City having a positive net position. The positive net positions were due primarily to GASB No. 75 Accounting and Financial Reporting for Postemployme nt benefits other than pensions and Long-Term Liabilities -Due in more than one year and higher fund balances for various grants received during the fiscal year. The Net Pension Liabilities and Other post-employment benefits (OPEB) were included within the government-wide financial st atements for both governmental and business- type financial reporting. At close of 2023-2024 fisc al year, the City’s Net Pension Liabilities were $27,771,137 and $1,839,594 for governmental and business-type activities for a total of $29,610,731.

The City’s Other post-employment benefit liabilities were $63,718,901 and $8,263,284 for governmental and business-type activities for a total of $71982,185. The Long-Term Liabilities were $118,483,307 and $20,437,229 for governmental and business-type activities for a total of $138,920,536 of which $85,610,000 is for the 2020 Taxable Pension Obligation Bonds; $66,802,423 for governmental and $18,807,577 for business-type activities.

 The City’s total net position increased by $41,448,280 in 2023-2024. Net position of governmental activities increased by $16,942,390 while net positi on of business type activities increased by $24,505,890. The increase for governmental activities was due primarily to 1) Additional Tax Revenue compared to the prior year in the amount of around $3 million as the economy continued to improve. 2) Additio nal grants received for a various projec ts in fiscal year 2023-2024. 3) The City’s OPEB liability decreased due to higher discount rate for the actuarial valuation. 4) A large proportion of the City’s expenditures were for capital assets, which incr eased by $36 millions for the fiscal year.

 At the close of the 2023-2024 fiscal year, the City ’s governmental funds reported combined fund balances of $95,573,941, an increase of $9,065,544 in comparison to the prior year. General Fund increased by $9,478,386. The increase is due primarily to increases in tax revenue, which was higher than prior year by about $3.1 Million. The City’s Use of Money and Property, primarily its return on investments increase by $1.6 million compared to the prior year because of higher investment returns and a greater fair market value on its in vestments. The City’s General Fund expenditures were approximately $4.1 million lower compared to the final adopted budget amount due to salary savings from various departments. Economic development grants special revenue fund increased by $1.8 million, as a result of the City receiving additional grants for City projects. City Debt Service fund increased by $678,917 due to higher interest on unspent project balance in maintained by the fiscal agent for the fiscal year.

 At the end of the 2023-2024 fiscal year, the unrestri cted fund balance (the total of the committed, assigned, and unassigned components of fund ba lance) for the General Fund was $59,270,000 or approximately 81.5% of total General Fund expenditures.

 The City’s long-term debt decreased by $5,245,753 compared to prior year based on the City paying the annual debt service principal payments for the applicable debts during the fiscal year.

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

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.

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.

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

Overview of the Financial Statements (Continued)

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, City Debt Service Fund, and the Capital Projects Fund, which are considered to be major funds. Data from the other ten (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 28-34 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 36-41 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 45-97 of this report.

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

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 fundin g its obligation to provide pension and OPEB benefits to its employees and includes Budgetary Comparison schedules for the General Fund and the Economic Development Grant s Special Revenue Fund. Required supplementary information can be found on pages 101-117 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 120-148 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, assets and defe rred outflows of resources exceeded liabilities and deferred inflows of resources by $22,504,270 at the close of the 2022-2023 fiscal year.

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

Government-wide Overall Financial Analysis (Continued)

By far, the largest portion of the City’s net position reflects its net 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 liabi lities - Due in more than one year, which decreased from $124,731,948 in 2022-2023 to $118,483,307 in fiscal year 2023-2024, or an decrease of $6,248,641, mainly from the debt service payments and lower subscription liability. The other additional long-term liabilities are Other Post-Employment Benefits (OPEB) of $63,718,901, a decrease of $1,049,363 compared to the prior year; this decrease is related to the increase of actu arial discount rate for 20-year Municipal Bond Index, which helped reduce the estimated liabilities. Thes e two liabilities total $182,202,208 for Governmental Activities, or 75%, of the total liability balance of $241,427,298 at June 30, 2024. The remaining liability is the pension liability, which has an increase of $11,650,311.

An additional portion of the City’s net position (R estricted) represents reso urces that are subject to external restrictions on how they may be used. The remaining balance of $ (149,435,390) 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, and OPEB liabilities.

At the end of the 2023-2024 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 term Liabilities- Due in more than one year wh ich includes the pension bond debt as a result of the 2020 Taxable Pension Obligation Bond 2) GASB 75, which is for other post-employment benefit liabilities; 3) GASB 68, which is for pension liabilities.

The City’s overall net position in creased by $44,448,280 from the prior fiscal year. The reasons for this overall decrease are discussed in the below sectio ns for governmental activities and business-type activities.

Governmental Activities. During 2023-2024 fiscal year, net position for governmental activities increased by $16,942,390 from the prior fiscal year for an ending balance of $(28,496,853). The increase in the overall net position was primarily related to: 1) The OPEB liabilit y decreased by $1 millio n due to the updated valuation report. 2) City received additional gran ts for Economic Development and Public Works, an increase of $2.8 million for various capital projects. 3) Long-term liabilities were lower by $6.2 million comparing to prior year due to debt service paymen t and the completion of the 2017 Direct Purchase Bonds. The General Fund Revenues were up $3.8 million or 4.7% compared to the prior year.

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

Government-wide Overall Financial Analysis (Continued)

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

Government-wide Overall Financial Analysis (Continued)

Business-type Activities . In the 2023-2024 fiscal year, the City’s business-type activities increased the net position by $24,505,890 compared to the prior year balance for the fiscal year ended June 30, 2023. Business- type activities revenue increased by $27,724,631 or 90% compared to the prior year for a total of $58,360,842 in revenues at year-end. In comparison to the prio r fiscal year, the charges for services increased by $226,014 or 5.3% with charges for services remainin g constant with prior years. Operating grants and contributions increased by $4,938,221 or 21.7% compared to the prior fiscal year, overall operating costs.

Therefore, GTrans used more operating subsidies to cover the shortfall. Capital grants and contributions increased by $22,373,220 or 702% primarily due the acquisition of 21 CNG buses and 7 zero-emission buses as well as increase in capital outlays. Investment income and miscellaneous increased by $187,176 or 42.8% compared to the prior year due to the City exploring additional investment options within its investment policy and earning significantly higher interest rates. Expenses for operations increased by $3,586,809 or

11.9% compared to prior year, which was largely due cost of living expenses paid to employees and higher operating cost.

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, 2024, the City’s governmental funds re ported combined fund balances of $95,573,941 an increase of $9,068,544 or 10.5% in comparison with the prior year. Approximately 0.3% of this amount or $277,695 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 $356,747 ; 2) restricted for purposes $35,969,499 ; 3) committed for purposes $33,309,406 ; or 4) assigned for purposes $25,660,594.

The General Fund is the chief operating fund of th e City. At the end of the 2023-2024 fiscal year, the unassigned fund balance of the General Fund was $30 0,000, while the total fund balance increased from $50,138,597 to $59,616,983, an increase of $9,478,386 or a 18.9% 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 0.3% of total general fund expenditures, while total fund balance represents approximately 81.5% 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 $9,478,386 during the 2023-2024 fiscal year. The Top 5 Revenue generators, which make up 71.5% of the General Fund Original Adopted Budget for Fiscal Year 2023-2024, was up $3..1 million compared to th e budgeted amount ; 1) Sales Tax from Measure G

0.75% was up $1.1 million compared to the final bu dget as a majority of the sales tax generators did significantly better than expected ; 2) Card Club re venue was down $283,143 compared to the budget as mainly due to the subpar performance from Lucky Lady Casino; 3) Property tax exceeded the final budget by $146,843 or 1.6% from active housing market and hi gher housing prices in the region; 4) Utility Users Tax increased by $442,031 from higher utility prices; and 5) Motor Vehicle In-Lieu increased by $520,913 from the budget primarily based on updated fee rates.

The Economic Development Grants Special Revenue Fu nd, a major fund, had a increase of $1 million in fund balance during the fiscal ye ar primarily due to receiving ad ditional grants 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 $678,917 in fund balance during the fiscal year, due to the interest income from remaining project balance in the 2021 Lease Revenue 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 renovating an existing bu ilding to be converted into a new Community Center and various park improvements.

The Capital Projects Fund, a major fund, had a fund balance of $301,894. Du ring the fiscal year, the expenditures for this fund were be ing reimbursed by the project fundin g sources such as local and state grants. Therefore, no changes in the fund balance for the fiscal year.

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

The unrestricted net position of GTrans at the end of the fiscal year was $(22,805,893) and for the Sewer Fund was $3,530,500. The total increase in unrestricted net position for GTrans was $1,697,127 and the Sewer Fund unrestricted net position increased by $932,348, respectively. GTrans increase in unrestricted net position was due to the increases in transit operation. The Sewe r Fund increase is based on the delay in starting several capital projects and the expenditures savings related to that.

General Fund Budgetary Highlights

The final budget for revenue was not amended and stay ed the same as the original adopted budget of $77,953,099. Actual revenue compared to the final budget was up by $5.6 million or 7.2% compared to the final budget. This is primarily a result of an increase in sales tax revenue compared to the budget of about $3.1 million. The other major contribution is the incr ease in interest earning of $1.63 million over the budgeted amount due to active investment activities and higher interest rates. A detailed budgetary comparison schedule for the year ended June 30, 2024, 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 Fu nd expenditures was $1.8 million higher than the original budget due to the purchase of Gardena Blvd parking lot, $76,750,988. The actual expenditures were less than the final budget by $4,097,991 or 5.3% percent, which was primarily due to salary savings from vacancies in various departments. A detailed budgetary comparison schedule for the year ended June 30, 2024, 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, 2024, amounts to $155,684,279 (net of accumulated depreciation and amortization). This investment in capital assets includes land, building s, machinery, equipment, vehicles, park facilities, roads, and highways. The total increase in capital assets compared to prior year was $35,943,695 or 30%, primarily due to the acquisition of buses and more capital projects being started in 2023-2024 fiscal year.

Major capital asset events
during the 2023-2024 fiscal year included the following:
 Acquisition of a property locate at 1112 W Gardena Blvd  Acquisition of a property locate at 15016 Nader Place  Acquisition of 21 CNG Buses
 Acquisition of 7 Zero-Emission Buses
 Completion of Budlong Ave & Halldale Ave Street Improvement, JN985  Completion of Van Ness Ave Street Improvement, JN992

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

14  Completion of Fire Station #158 Roof Replacement, JN509

Additional information on the City’s capital assets can be found in Note 7 on pages 67-68 of this report.

Long-term Debt. At the end of the 2023-2024 fiscal year, the City had total bonded debt outstanding of $104,160,075. The City’s long-term debt decreased by $5,245,753 or 4.8% compared to prior year based on the City paying the annual debt service principal payments 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, 2024. 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 69-76 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 Ci ty in its adopted budget for fiscal year 2024-2025 & fiscal year 2025-2026, to budget for and add a total of 14.45 full-time equivalent (FTE) positions, as well as investments in seniors, youth and community se rvice programs and the largest budgeted Capital Improvement Program in the Cities history with over $71.5 million budgeted for the budget cycle.

The City adopted Fiscal Year 2024- 2025 and fiscal year 2025-2026 budget on June 25, 2024. The General Fund Revenue Budget for the next fiscal year, 2024-2025, was $86,419,896 with expenditures of $86,265,644 for a surplus of $154,252.

In 2024-2025 the Top 5 Adopted Budgeted General Fund revenue sources, which make up 73% of the City’s General Fund, include: 1) Sales and Use Tax - $28.4 million (33%), 2) Property Taxes - $10.7 million (12%), 3) Card Club Gross Revenue Fees - $8.9 million (10%) 4) Vehicle License Fees - $8.9 million (10%), and 5) Utility Users Tax - $6.7 million (8%).

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

15 In 2024-2025, the budgeted General Fund expenditures were $86,265,644, with the Police Department making up $35.9 million or 42%, Non-Departmental (i ncluding the Fire Department and our South Bay Regional Public Communications Authority) $15.7 m illion or 18%, Transfers Out at $11.4 million or 13%, Public Works at $7.3 million or 8.4%, Recreation and Human Services at $6.6 million or 7.6%, Elected and City Managers Offices at $2.5 millio n or 3%, Community Development De partment at $3.4 million or 4% and the Administrative Services Department at $3.3 million or 4%.

While the City is on solid economic footing with diverse revenue base and prudent fiscal management, potential fiscal challenges remain. As we look to futures years, the continued reliance on card clubs’ revenue fee resurface as a major threat to the Gene ral Fund budget due to the recently signed casino legislation, the Gaming: Tribal Nati ons Access to Justice Act (SB 549). A court declaration in favor of the Indian tribe would stop almost all controlled Vegas-st yle games operated by the local card clubs. The potential adverse financial impact to the City would be the loss of $9 million per fiscal year.

The City will continue to be challenged by the rais ing CalPERS pension costs. The City, like many others, has a significant unfunded pension benefit liability with CalPERS. The City’s unfunded pension liability was $27.8 million as of June 30, 2024 per the CalPERS actuarial valuation. The City has been proactive and taken steps to reduce its unfunded pension liability including adopting the UAL policy during the issuance of the Pension Obligation Bonds in 2020. The City will continue to evaluate the projected contributions and funding levels and various options to lower the liability.

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, 2024

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17 BASIC FINANCIAL STATEMENTS
18 City of Gardena

Annual Comprehensive Financial Report
For the Year Ended June 30, 2024

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19 GOVERNMENT-WIDE

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

Cash and investments 95,601,484 $ 17,780,743 $ 113,382,227 $ Receivable, net 9,568,039 586,830 10,154,869 Due from other governments 4,750,166 7,679,670 12,429,836 Internal balances 10,736,740 (10,736,740) -
Prepaid items 402,253 117,532 519,785 Inventories 41,474
766,591 808,065
Total current assets 121,100,156 16,194,626 137,294,782 Noncurrent assets:

Restricted cash and investments:

Cash with fiscal agent 14,446,752 - 14,446,752 Loans receivable 1,835,295 - 1,835,295 Capital assets:

Capital assets, not being depreciated 22,688,555 24,641,502 47,330,057 Capital assets, being depreciated 45,085,623 61,880,839 106,966,462 Intangible asset, being amortized 1,223,220
164,540 1,387,760
Total capital assets 68,997,398 86,686,881 155,684,279 Total noncurrent assets 85,279,445 86,686,881 171,966,326 Total assets 206,379,601 102,881,507 309,261,108

DEFERRED OUTFLOWS OF RESOURCES
Pension related deferred outflows of resources 29,842,051 2,156,356 31,998,407 OPEB related deferred outflows of resources 10,053,521 2,218,832 12,272,353 Total deferred outflows of resources 39,895,572 4,375,188 44,270,760 Primary Government
City of Gardena
Statement of Net Position
June 30, 2024
See accompanying notes to the basic financial statements. 20 Governmental Business-Type
Activities Activities Total

LIABILITIES
Current liabilities:

Accounts payable 4,525,241 5,364,441 9,889,682 Accrued liabilities 99,385 113,122 212,507 Salaries and benefits payable 773,256 298,700 1,071,956 Due to other governments 1,027,656 - 1,027,656 Retention payable 236,541 - 236,541 Deposits payable 4,404,083 - 4,404,083 Unearned revenue 7,790,516 16,843,550 24,634,066 Accrued interest payable 790,121 5,364 795,485 Compensated absences - due within one year 2,084,224 407,413 2,491,637 Claims payable - due within one year 3,915,095 - 3,915,095 Long-term debt - due within one year 5,807,835
1,226,735 7,034,570
Total current liabilities 31,453,953 24,259,325 55,713,278 Noncurrent liabilities:

Compensated absences - due in more than one year 8,336,898 1,629,652 9,966,550 Claims payable - due in more than one year 11,794,169 - 11,794,169 Long-term debt - due in more than one year 98,352,240 18,807,577 117,159,817 Aggregate net pension liabilities 27,771,137 1,839,594 29,610,731 Aggregate net OPEB liabilities 63,718,901 8,263,284 71,982,185 Total noncurrent liabilities 209,973,345 30,540,107 240,513,452 Total liabilities 241,427,298 54,799,432 296,226,730

DEFERRED INFLOWS OF RESOURCES
Pension related deferred inflows of resources 20,535,195 326,854 20,862,049 OPEB related deferred inflows of resources 12,809,533 867,334 13,676,867 Total deferred inflows of resources 33,344,728 1,194,188 34,538,916

NET POSITION
Net investment in capital assets 54,842,470 81,080,908 135,923,378 Restricted for:

Law enforcement 1,046,383 - 1,046,383 Local street improvements 8,671,919 - 8,671,919 Economic development 6,077,248 - 6,077,248 Capital projects 17,981,086 - 17,981,086 Human services 30,747 - 30,747 Debt service 2,162,116
- 2,162,116
Total restricted 35,969,499 - 35,969,499 Unrestricted (Deficit) (119,308,822) (29,817,833) (149,126,655) Total net position (28,496,853)$ 51,263,075 $ 22,766,222 $ Primary Government
City of Gardena
Statement of Net Position (Continued)
June 30, 2024
See accompanying notes to the basic financial statements. 21 Operating Capital Total
Charges for Grants and Grants and Program
Expenses Services Contributions Contributions Revenue
Primary Government:

Governmental activities:

General government 10,765,058 $ 10,785,228 $ 33,938 $ - $ 10,819,166$ Public safety 53,473,334 2,694,787 525,753 - 3,220,540 Public works 11,783,411 3,112,536 4,955,198 5,535,276 13,603,010 Recreation and human services 8,503,950 632,632 1,758,252 - 2,390,884 Community development 5,022,928 939,062 840,603 - 1,779,665 Interest 3,233,912 - - - - Total governmental activities 92,782,593 18,164,245 8,113,744 5,535,276 31,813,265 Business-type activities:

GTrans 31,973,093 1,947,714 22,853,192 30,651,564 55,452,470 Sewer 1,723,699 2,545,381 - - 2,545,381 Total business-type activities 33,696,792 4,493,095 22,853,192 30,651,564 57,997,851 Total primary government 126,479,385$ 22,657,340 $ 30,966,936 $ 36,186,840 $ 89,811,116 $ City of Gardena
Statement of Activities
For the Year Ended June 30, 2024
Functions/Programs
Program Revenues
See accompanying notes to the basic financial statements. 22 Governmental Business-type
Activities Activities Total
Primary Government:

Governmental activities:

General government 54,108 $ - $ 54,108$ Public safety (50,252,794) - (50,252,794) Public works 1,819,599 - 1,819,599 Recreation and human services (6,113,066) - (6,113,066) Community development (3,243,263) - (3,243,263) Interest and fiscal charges (3,233,912) - (3,233,912) Total governmental activities (60,969,328) - (60,969,328) Business-type activities:

GTrans - 23,479,377 23,479,377
Sewer - 821,682 821,682
Total business-type activities - 24,301,059 24,301,059 Total primary government (60,969,328) 24,301,059 (36,668,269) General revenues:

Property taxes 10,141,426 - 10,141,426 Sales taxes 28,056,992 - 28,056,992 Business license 3,477,728 - 3,477,728 Utility users taxes 6,404,308 - 6,404,308 Franchise taxes 3,724,876 - 3,724,876 Card club 8,910,456 - 8,910,456 Other taxes 4,819,341 - 4,819,341 Total taxes 65,535,127 - 65,535,127 Vehicle license - unrestricted 8,558,629 - 8,558,629 Investment income 2,260,394 624,943 2,885,337 Miscellaneous 1,399,408 - 1,399,408 Total general revenues 77,753,558 624,943 78,378,501 Transfers 158,160 (158,160) -
Change in net position 16,942,390 24,767,842 41,710,232 Net position (deficit) - beginning of year (45,439,243) 26,495,233 (18,944,010) Net position (deficit) - end of year (28,496,853) $ 51,263,075 $ 22,766,222 $ Functions/Programs
City of Gardena
Statement of Activities (Continued)
For the Year Ended June 30, 2024
Changes in Net Position
Net (Expenses) Revenues and
See accompanying notes to the basic financial statements. 23 24

City of Gardena

Annual Comprehensive Financial Report
For the Year Ended June 30, 2024

(This page is intentionally left blank)
25 FUND FINANCIAL STATEMENTS

Governmental Fund Financial Statements
Proprietary Fund Financial Statements
Fiduciary Fund Financial Statements
26 City of Gardena

Annual Comprehensive Financial Report
For the Year Ended June 30, 2024

(This page is intentionally left blank)
27 GOVERNMENTAL FUND

FINANCIAL STATEMENTS

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

Economic Development Grants Special Revenue Fund - To account for the fourteenth funds used for housing, environmental issues, and land use improvement. Six 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 and community projects. 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 pa rk or recreational facilities using fees received from the develop ers as required by the City's ordinance. Two funds receive funding from the U.S. Enviro nmental 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 the 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 de velopment impact fee to provide infrastructure and facility improvements as required by City’s ordinance. One fund to account for a community project grant from the California Department of Technology (DOT).

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

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 City City
Grants Special Capital Debt
General Revenue Projects Service
Fund Fund Fund Fund
Cash and investments 58,489,571 $ 10,381,169 $ 2,156,590 $ - $ Cash and investments with fiscal agents - - - 14,446,752 Receivables:

Accounts 1,334,182 - - - Taxes 6,995,931 - - - Interest 62,134 - - - Employees 40,118 - -
Loans - 1,835,295 - - Inventories 41,474 - - - Prepaid items and deposits 305,509 - - 3,689 Due from other governments - - - - Due from other funds 22,305 - - - Total assets 67,291,224$ 12,216,464 $ 2,156,590 $ 14,450,441 $ Liabilities:

Accounts payable 2,423,395 $ 23,795 $ 1,618,630$ - $ Accrued liabilities - - - - Salaries and benefits payable 751,795 - - - Due to other funds - - - 22,305 Due to other governments - - - - Unearned revenues - 6,220,454 - - Retention payable - 475 236,066 - Deposits payable 4,404,083 - - - Total liabilities 7,579,273 6,244,724 1,854,696 22,305 Deferred Inflows of Resources:

Unavailable revenue 94,968 - - - Total deferred inflows of resources 94,968 - - - Fund Balances:

Nonspendable 346,983 - - 3,689 Restricted - - - 14,426,858 Committed 33,309,406 - 301,894 - Assigned 25,660,594 - - - Unassigned 300,000 5,971,740 - (2,411) Total fund balances 59,616,983 5,971,740 301,894 14,428,136 Total liabilities, deferred inflows
of resources and fund balances 67,291,224$
12,216,464 $ 2,156,590 $ 14,450,441 $
Major Funds
June 30, 2024
ASSETS
City of Gardena
Balance Sheet
Governmental Funds

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
See accompanying notes to the basic financial statements. 28 Nonmajor
Governmental
Funds Total
Cash and investments 13,079,782 $ 84,107,112 $
Cash and investments with fiscal agents - 14,446,752 Receivables:

Accounts 567,973 1,902,155
Taxes 557,808 7,553,739
Interest - 62,134
Employees - 40,118
Loans - 1,835,295
Inventories - 41,474
Prepaid items and deposits 6,075 315,273
Due from other governments 4,750,166 4,750,166
Due from other funds - 22,305
Total assets 18,961,804$ 115,076,523 $
Liabilities:

Accounts payable 256,075 $ 4,321,895 $
Accrued liabilities 21,042 21,042
Salaries and benefits payable 18,967 770,762 Due to other funds - 22,305
Due to other governments 1,027,656 1,027,656
Unearned revenues 1,570,062 7,790,516
Retention payable - 236,541
Deposits payable - 4,404,083
Total liabilities 2,893,802 18,594,800
Deferred Inflows of Resources:

Unavailable revenue 812,814 907,782
Total deferred inflows of resources 812,814 907,782 Fund Balances:

Nonspendable 6,075 356,747
Restricted 15,249,113 29,675,971
Committed - 33,611,300
Assigned - 25,660,594
Unassigned - 6,269,329
Total fund balances 15,255,188 95,573,941
Total liabilities, deferred inflows
of resources and fund balances 18,961,804$
115,076,523 $

LIABILITIES, DEFERRED INFLOWS OF RESOURCES,

AND FUND BALANCES
City of Gardena
Balance Sheet (Continued)
Governmental Funds
June 30, 2024
ASSETS
See accompanying notes to the basic financial statements. 29 30

City of Gardena

Annual Comprehensive Financial Report
For the Year Ended June 30, 2024

(This page is intentionally left blank)
Total Fund Balances - Total Governmental Funds 95,573,941$ Capital assets, not being depreciated 22,688,555 $
Capital assets, depreciable 125,608,396
Less accumulated depreciation (80,522,773)
Right-to-use lease assets 905,527
Right-to-use lease assets accumulated amortization (357,400) Right-to-use subscription assets 1,456,361
Right-to-use subscription assets accumulated amortization (781,268) 68,997,398 (790,121)
Long-term debt - due within one year (5,807,835)
Long-term debt - due in more than one year (98,352,240) Compensated absences - due within one year (2,084,224)
Compensated absences - due in more than one year (8,336,898) Pension related deferred outflows of resources 29,842,051 Aggregate net pension liabilities (27,771,137)
Pension related deferred inflows of resources (20,535,195) OPEB related deferred outflows of resources 10,053,521
Aggregate net OPEB liabilities (63,718,901)
OPEB related deferred inflows of resources (12,809,533) 6,334,538
907,782
Net position of governmental activities (28,496,853)$
City of Gardena
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2024
Amounts reported for governmental activities in the Statement of Net Position were reported differently because:

Capital assets used in governmental activities were not current financial resources.

Therefore, they were not reported in the Governmental Funds Balance Sheet.

Internal service funds are used by management to charge the costs of 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 $10,736,740 allocated to business- type activities).

Revenues earned but not available to pay for current expenditures for governmental funds are unavailable.

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

Long-term liabilities are not due and payable in the current period and accordingly are not reported as fund liabilities.

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

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

See accompanying notes to the basic financial statements. 31 Economic
Development City City
Fines and forfeitures Grants Special Capital Debt
General Revenue Projects Service
Fund Fund Fund Fund
REVENUES:

Taxes 71,026,695 $ - $ - $ - $ Licenses and permits 3,168,262 - - - Intergovernmental 512,624 172,655 - - Charges for services 5,718,391 564,000 - 5,541,063 Fines, forfeitures, and penalties 795,650 260,000 - - Use of money and property 1,986,496 123,281 - 678,940 Miscellaneous 399,558 207,501 - - Total revenues 83,607,676 1,327,437 - 6,220,003 EXPENDITURES:

Current:

General government 8,543,487 - - - Public safety 47,976,854 - - - Public works 7,227,210 - - - Recreation and human services 4,767,223 - - - Community development 3,138,525 830,470 - - Capital outlay 918,404 198,426 11,576,988 - Debt service:

Principal retirement 59,844 - - 4,895,063 Interest and fiscal charges 21,450
- - 3,601,134
Total expenditures 72,652,997 1,028,896 11,576,988 8,496,197

REVENUES OVER (UNDER)
EXPENDITURES 10,954,679 298,541 (11,576,988) (2,276,194)

OTHER FINANCING
SOURCES (USES):

Transfers in 3,385,222 - 11,576,985 2,970,461 Transfers out (4,866,568) (1,042,233) - (15,350) Proceeds from sale of assets 5,053 - - - Total other financing
sources (uses) (1,476,293) (1,042,233) 11,576,985 2,955,111 NET CHANGE IN FUND BALANCE 9,478,386 (743,692) (3) 678,917 Fund balances, beginning of year 50,138,597 6,715,432 301,897 13,749,219 Fund balances, end of year 59,616,983 $ 5,971,740 $ 301,894 $ 14,428,136$ Major Funds
City of Gardena
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the Year Ended June 30, 2024
See accompanying notes to the basic financial statements. 32 Nonmajor
Governmental
Funds Total
REVENUES:

Taxes 4,370,970 $ 75,397,665 $
Licenses and permits - 3,168,262
Intergovernmental 12,687,168 13,372,447
Charges for services - 11,823,454
Fines, forfeitures, and penalties 22,646 1,078,296 Use of money and property 477,039 3,265,756
Miscellaneous 67,032 674,091
Total revenues 17,624,855 108,779,971
EXPENDITURES:

Current:

General government 1,127 8,544,614
Public safety 286,273 48,263,127
Public works 1,860,164 9,087,374
Recreation and human services 2,586,120 7,353,343 Community development 221,335 4,190,330
Capital outlay 26,294 12,720,112
Debt service:

Principal retirement 21,918 4,976,825
Interest and fiscal charges 28,826
3,651,410
Total expenditures 5,032,057 98,787,135

REVENUES OVER (UNDER)
EXPENDITURES 12,592,798 9,992,836

OTHER FINANCING
SOURCES (USES):

Transfers in 543,815 18,476,483
Transfers out (13,494,172) (19,418,323)
Proceeds from sale of assets 12,495 17,548
Total other financing
sources (uses) (12,937,862) (924,292)
NET CHANGE IN FUND BALANCE (345,064) 9,068,544
Fund balances, beginning of year 15,600,252 86,505,397 Fund balances, end of year 15,255,188 $ 95,573,941 $
City of Gardena
Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Governmental Funds
For the Year Ended June 30, 2024
See accompanying notes to the basic financial statements. 33 Net Change in Fund Balances - Total Governmental Funds 9,068,544$ Amounts reported for governmental activities in the Statement of Activities are different because:
13,109,202
The net effect of disposal of capital assets. 2,006
(3,594,603)
148,570
(1,196,146)
(382,275)
(6,830,311)
Principal repayments of long-term debt 5,506,898 $
Interest accrual on loans payables (86,224)
Proceeds from issuance of long-term debt (267,731)
Amortization of bond premium 106,654
Amortization of bond discount (13,844) 5,245,753 1,914,333
(542,683)
Change in net position of governmental activities 16,942,390$ 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 $66,295 allocated to business-type activities).

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.

Unavailable revenue is not recognized as revenue in the governmental funds since the revenue is not available to fund expenditures of the current year.

City of Gardena
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balance to the Governmental-wide Statement of Activities For the Year Ended June 30, 2024
Acquisition of capital assets was reported as expenditures in the governmental funds. However, in the Government-Wide Statement of Activities, the cost of those assets was allocated over the estimated useful lives as depreciation expense. The following was the amount of capital assets recorded in the Pension expense net of contributions 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.

Capital outlay ($389,120) of capital outlay expenditures were for current public works expenditures for repairs and maintenance and therefore, were not capitalized.

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 funds.

Depreciation and amortization expenses on capital, lease, and subscription 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.

The fund financial statements record interest expenditures on the current financial resources of 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.

Long-term compensated absences expense was reported in the Government-Wide Statement of Activities, but it did not require the use of current resources. Therefore, the increase in other postemployment benefits liability and net pension liabilities were 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 increases in other postemployment benefits liability and net pension liabilities were not reported as an expenditure in the governmental funds.

See accompanying notes to the basic financial statements. 34 35

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 ope rating costs associated with the operation, maintenance, upgrade and periodic reconstructions of the City’s sanitary sewer system.

Internal Service Funds - To account for financing of goods and services prov ided by one department (general liability, workers’ compensation, and health benefits) to other departments of the City on a cost-reimbursement basis.

Governmental
Activities
GTrans Nonmajor Sewer Internal
Enterprise Fund Enterprise Fund Total Service Funds
ASSETS
Current assets:

Cash and investments 13,076,396 $ 4,704,347 $ 17,780,743 $ 11,494,372 $ Account receivables, net 349,341 237,489 586,830 9,893 Due from other governments 7,679,670 - 7,679,670 - Inventories 766,591 - 766,591 - Prepaid items and deposits 69,307 48,225 117,532 86,980 Total current assets 21,941,305 4,990,061 26,931,366 11,591,245 Noncurrent assets:

Capital assets, net 85,659,936 1,026,945 86,686,881 - Total noncurrent assets 85,659,936 1,026,945 86,686,881 - Total assets 107,601,241 6,017,006 113,618,247 11,591,245

DEFERRED OUTFLOWS

OF RSOURCES
Deferred outflows of resources
related to pensions 2,035,870 120,486 2,156,356 - Deferred outflows of resources related
to other postemployment benefits 2,144,444
74,388 2,218,832 -
Total deferred outflows
of resources 4,180,314
194,874 4,375,188 -
City of Gardena
Statement of Net Position
Proprietary Funds
June 30, 2024
Business-Type Activities
See accompanying notes to the basic financial statements. 36 Governmental
Activities
GTrans Nonmajor Sewer Internal
Enterprise Fund Enterprise Fund Total Service Funds

LIABILITIES
Current liabilities:

Accounts payable 5,361,612 2,829 5,364,441 203,346 Accrued liabilities 113,122 - 113,122 78,343 Salaries and benefits payable 281,539 17,161 298,700 2,494 Unearned revenue 16,843,550 - 16,843,550 - Accrued interest payable 4,344 1,020 5,364 - Compensated absences, due within one year 376,484 30,929 407,413 - Lease payable, due withing one year 17,884 - 17,884 - Subscription payable, due within one year 128,305 25,986 154,291 - Long-term debt, due within one year 1,007,520 47,040 1,054,560 - Claims payable, due within one year - - - 3,915,095 Total current liabilities 24,134,360 124,965 24,259,325 4,199,278 Noncurrent liabilities:

Compensated absences, due in more than one year 1,505,935 123,717 1,629,652 - Long-term debt, due in more than one year 17,973,636 833,941 18,807,577 - Claims payable, due in more than one year - - - 11,794,169 Aggregate net pension laibility 1,737,613 101,981 1,839,594 - Aggregate net other postemployment
benefits liabilities 7,945,597 317,687 8,263,284 - Total noncurrent liabilities 29,162,781 1,377,326 30,540,107 11,794,169 Total liabilities 53,297,141 1,502,291 54,799,432 15,993,447

DEFERRED INFLOWS

OF RSOURCES
Deferred inflows of resources
related to pensions 308,734 18,120 326,854 - Deferred inflows of resources related
to other postemployment benefits 600,977
266,357 867,334 -
Total deferred inflows of resources 909,711 284,477 1,194,188 -

NET POSITION
Net investment in capital assets 80,118,644 962,264 81,080,908 - Unrestricted (deficit) (22,543,941) 3,462,848 (19,081,093) (4,402,202) Total net position 57,574,703$ 4,425,112 $ 61,999,815 $ (4,402,202) $ Net position reconciliation
Net position of proprietary funds 57,574,703 $ 4,425,112 $ 61,999,815 $ (4,402,202) $ Adjustment to reflect the consolidation
of internal service fund activities related
to the GTrans and Sewer (10,795,573)
58,833 (10,736,740) 10,736,740
Net position of business-type activities 46,779,130 $ 4,483,945 $ 51,263,075 $ Net position of governmental activities 6,334,538 $
City of Gardena
Statement of Net Position (Continued)
Proprietary Funds
June 30, 2024
Business-Type Activities
See accompanying notes to the basic financial statements. 37 38

City of Gardena

Annual Comprehensive Financial Report
For the Year Ended June 30, 2024

(This page is intentionally left blank)
Governmental
Activities
GTrans Nonmajor Sewer Internal
Enterprise Fund Enterprise Fund Total Service Funds
OPERATING REVENUES:

Charges for services 1,710,139 $ 2,537,541 $ 4,247,680 $ 13,568,276 $ Other 219,985 7,840 227,825 1,038,088 Total operating revenues 1,930,124 2,545,381 4,475,505 14,606,364 OPERATING EXPENSES:

Salaries and benefits 18,824,869 1,042,392 19,867,261 121,463 Insurance claims - - - 5,719,250 General and administrative 5,918,113 357,829 6,275,942 7,891,742 Depreciation and amortization 3,925,720 196,178 4,121,898 - Other operating expenses 2,594,668 140,832 2,735,500 399,770 Total operating expenses 31,263,370 1,737,231 33,000,601 14,132,225 OPERATING INCOME (29,333,246) 808,150 (28,525,096) 474,139 NON-OPERATING REVENUES (EXPENSES):

Local transportation fund 3,190,038 - 3,190,038 - Other local assistance 14,494,964 - 14,494,964 - Federal transit assistance 3,234,000 - 3,234,000 - State transit assistance fund 1,934,190 - 1,934,190 - Interest income 524,127 100,816 624,943 273,899 Interest expense (601,562) (28,334) (629,896) - Gain on sale of capital assets 17,590 - 17,590 - Total non-operating revenues (expenses) 22,793,347 72,482 22,865,829 273,899

INCOME (LOSS) BEFORE
CONTRIBUTIONS AND TRANSFERS (6,539,899) 880,632 (5,659,267) 748,038

CONTRIBUTIONS AND TRANSFERS
Capital contributions 30,651,564 - 30,651,564 - Transfers in - 33,317 33,317 2,386,852 Transfers out - (191,477) (191,477) (1,286,852) Total contributions and transfers 30,651,564 (158,160) 30,493,404 1,100,000 Change in net position 24,111,665 722,472 24,834,137 1,848,038 Net position (deficit), beginning of year 33,463,038 3,702,640 37,165,678 (6,250,240) Net position (deficit), end of year 57,574,703 $ 4,425,112 $ 61,999,815 $ (4,402,202) $ Change in net position reconciliation:

Change in net position of proprietary funds 24,111,665$ 722,472 $ 24,834,137$ 1,848,038 $ Adjustments to reflect the consolidation
of internal service fund activities related
to the GTrans and Sewer (108,161)
41,866 (66,295) 66,295
Change in net position of business-type activities 24,003,504$ 764,338 $ 24,767,842$ Change in net position related to governmental activities 1,914,333 $ City of Gardena
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
For the year ended June 30, 2024
Business-Type Activities
See accompanying notes to the basic financial statements. 39 Governmental
Activities
GTrans Nonmajor Sewer Internal
Enterprise Fund Enterprise Fund Total Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from customers and users 1,609,340 $ 2,516,759 $ 4,126,099 $ 13,564,118 $ Receipts from claims and recoveries - - - 1,038,088 Payments for insurance claims - - - (8,469,313) Payments to suppliers (4,350,525) (529,107) (4,879,632) (8,490,476) Payments to employees (16,055,029) (858,276) (16,913,305) - Other receipts 219,985 7,840 227,825 - Net cash provided (used by) operating activities (18,576,229) 1,137,216 (17,439,013) (2,357,583)

CASH FLOWS FROM NON-CAPITAL
FINANCING ACTIVITIES:

Transfers from other funds - 33,317 33,317 2,386,852 Transfers to other funds - (191,477) (191,477) (1,286,852) Payments paid to other funds (7,093,382) - (7,093,382) - Principal payments on long term debt (979,427) (66,255) (1,045,682) - Interest paid (597,218) (27,314) (624,532) - Transit assistance funds received 18,698,956 - 18,698,956 - Net cash provided (used by) non-capital
financing activities 10,028,929
(251,729) 9,777,200 1,100,000

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Acquisition of capital assets (30,548,988) - (30,548,988) - Proceeds from sale of capital assets 17,590 - 17,590 - Receipt from capital grants 30,108,640 - 30,108,640 - Net cash provided (used by) capital and
related financing activities (422,758)
- (422,758) -
CASH FLOWS FROM INVESTING ACTIVITIES:

Interest received 524,128 100,816 624,944 273,899 Net cash provided (used by) investing activities 524,128 100,816 624,944 273,899 Net increase (decrease) in cash and cash equivalents (8,445,930) 986,303 (7,459,627) (983,684) Cash and equivalents, beginning of year 21,522,326 3,718,044 25,240,370 12,478,056 Cash and equivalents, end of year 13,076,396 $ 4,704,347 $ 17,780,743 $ 11,494,372 $ City of Gardena
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2024
Business-Type Activities
See accompanying notes to the basic financial statements. 40 Governmental
Activities
GTrans Nonmajor Sewer Internal
Enterprise Fund Enterprise Fund Total Service Funds

RECONCILIATION OF OPERATING

INCOME (LOSS) TO NET CASH (USED BY)
OPERATING ACTIVITIES:

Operating income (loss) (29,333,246) $ 808,150 $ (28,525,096)$ 474,139 $ Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:

Depreciation and amortization expenses 3,925,720 196,178 4,121,898 - (Increase) decrease:

Accounts receivable (100,799) (20,782) (121,581) (4,158) Inventories (21,947) - (21,947) - Prepaid items and deposits 2,559 (26,059) (23,500) (71,603) Deferred outflows of resources - pensions 4,990,251 308,809 5,299,060 - Deferred outflows of resources - OPEB 366,035 11,348 377,383 - Increase (decrease):

Accounts payable 4,177,650 (3,367) 4,174,283 107,386 Accrued liabilities 3,994 (1,020) 2,974 (234,747) Accrued salaries and benefits payable 51,838 2,640 54,478 2,494 Compensated absences 81,554 34,107 115,661 - Net pension liability (1,309,254) (84,182) (1,393,436) - Net other postemployment benefits liability 219,425 22,961 242,386 - Deferred outflows of resources - pensions (1,491,570) (91,879) (1,583,449) - Deferred outflows of resources - OPEB (138,439) (19,688) (158,127) - Deposits payable - - - - Claims payable -
- - (2,631,094) Total adjustments 10,757,017 329,066 11,086,083 (2,831,722) Net cash provided (used) by operating activities (18,576,229)$ 1,137,216 $ (17,439,013)$ (2,357,583) $ Supplemental disclosures of noncash investing and capital related financing activities:

The City had noncash financing transactions relating to operating leases on new equipment of $20,415 during the fiscal year June 30, 2024.

City of Gardena
Statement of Cash Flows (Continued)
Proprietary Funds
For the year ended June 30, 2024
Business-Type Activities
See accompanying notes to the basic financial statements. 41 42

City of Gardena

Annual Comprehensive Financial Report
For the Year Ended June 30, 2024

(This page is intentionally left blank)
43 NOTES TO THE BASIC

FINANCIAL STATEMENTS
44 City of Gardena

Annual Comprehensive Financial Report
For the Year Ended June 30, 2024

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City of Gardena
45 Index to the Notes to the Basic Financial Statements For the Year Ended June 30, 2024
Note 1 – Summary of Significant Accounting Policies ......................................................................................... 47 A. Financial Reporting Entity .................................................................................................................... 47 B. Basis of Accounting and Measurement Focus ...................................................................................... 47 C. Cash, Cash Equivalents and Investments .............................................................................................. 50 D. Cash and Investments with Fiscal Agents ............................................................................................. 50 E. Fair Value Measurement ....................................................................................................................... 50 F. Interfund Transactions. ......................................................................................................................... 50 G. Inventories and Prepaid Items ............................................................................................................... 51 H. Capital Assets ....................................................................................................................................... 51 I. Deferred Outflows and Inflows of Resources ....................................................................................... 52 J. Interest Payable..................................................................................................................................... 52 K. Unearned Revenue ................................................................................................................................ 52 L. Compensated Absences ........................................................................................................................ 52 M. Leases ................................................................................................................................................... 52 N. Pensions. ............................................................................................................................................... 53 O. Other Postemployment Benefits (“OPEB”) .......................................................................................... 54 P. Claims Payable ..................................................................................................................................... 54 Q. Subscription Based Information Technology Arrangements Liabilities ............................................... 54 R. Long-Term Debt ................................................................................................................................... 55 S. Property Taxes ...................................................................................................................................... 55 T. Net Position and Fund Balances ........................................................................................................... 56 U. Use of Estimates ................................................................................................................................... 57 V. Implementation of New GASB Pronouncements ................................................................................. 57 Note 2 – Stewardship, Compliance and Accountability ...................................................................................... 58 A. Deficit Net Position .............................................................................................................................. 58 B. Expenditures in Excess of Appropriations ............................................................................................ 58 Note 3 – Cash and Investments ............................................................................................................................. 59 A. Deposits ................................................................................................................................................ 60 B. Investments ........................................................................................................................................... 61 C. Fair Value Measurement ....................................................................................................................... 62 D. Risk Disclosures ................................................................................................................................... 62 Note 4 – Other Receivables .................................................................................................................................... 63 A. YMCA Receivables .............................................................................................................................. 63 B. State Mandated Claims Reimbursement ............................................................................................... 63 Note 5 – Loans Receivable ..................................................................................................................................... 64 A. Home-Owner Occupied Deferred Loans .............................................................................................. 64 B. Spring Park Senior Villa Developer Loan ............................................................................................. 64 Note 6 – Interfund Transactions ........................................................................................................................... 64 A. Government-Wide Financial Statements .............................................................................................. 64 B. Fund Financial Statements .................................................................................................................... 65 City of Gardena
46 Index to the Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024
Note 7 – Capital Assets ........................................................................................................................................... 67 A. Governmental Activities ....................................................................................................................... 67 B. Business-Type Activities. ..................................................................................................................... 68 Note 8 – Long-Term Liabilities ............................................................................................................................. 69 A. Governmental Activities ....................................................................................................................... 69 B. Business-Type Activities. ..................................................................................................................... 75 Note 9 – Self-Insurance Programs ........................................................................................................................ 77 A. Self-Insurance Programs of the City ..................................................................................................... 77 B. Purchased Insurance ............................................................................................................................. 77 C. Adequacy of Protection ........................................................................................................................ 77 Note 10 – Retirement Plans ................................................................................................................................... 78 A. California Public Employee’s Retirement System (“CalPERS”) .......................................................... 78 B. Public Agency Retirement System (“PARS”). ..................................................................................... 87 Note 11 – Other Postemployment Benefits (“OPEB”) ......................................................................................... 87 Note 12 – Deferred Compensation Plan ................................................................................................................ 95 Note 13 – Net Position and Fund Balances ........................................................................................................... 95 A. Government-Wide Financial Statements .............................................................................................. 95 B. Fund Financial Statements .................................................................................................................... 96 Note 14 – Jointly Governed Organization ............................................................................................................ 97 Note 15 – Commitments and Contingencies ......................................................................................................... 97 Note 16 – Family Child Care Program ............................................................................................................... 97 Note 17 – Subsequent Events .............................................................................................................................. . 97

47 City of Gardena

Notes to the Basic Financial Statements
For the Year Ended June 30, 2024

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 Boar d (“GASB”) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The following is a summary of the significant policies:

A. Financial Reporting Entity

The City was incorporated September 11, 1930, under the General Laws of the State of California. The City is governed by an elected five-member council.

Blended Component Unit

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 financial benefit or burde n relationship and whether it is misleading to exclude. A primary government is financially accountable and shares a financial benefit or burden relationship, if it appoints a voting majority of an organization’s governing body and it is able to impose its will on the organization, or if there is a potential for the or ganization to provide specific financial benefits to, or impose specific financial burdens on the primary governme nt. A primary government may also be financially accountable if an organization is fiscally dependent on the primary government regardless of whether the organization has a separately elected governing board, a governing board appointed by a higher level of government, or a jointly appointed board, and there is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens on the primary government.

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 body is substantially the same as the City’s and there is a financial benefit or burden relationship between the City and the component unit; management of the City has operational responsibilities 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 provide services directly to it.

City of Gardena Financing Agency - The City of Gardena Financing Ag ency (“the Agency”) was created primarily to finance the acquisition of a public parking structure. The members of the City Council serve as the governing board of the Agency and there is a financial benefit or burden relationshi p between the City and the Agency. The Agency does not issue separate financial statements.

The City had no discretely presented component units.

B. Basis of Accounting and Measurement Focus

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

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
48 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 the City’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources, including capital assets, as well as infrastructure assets, and long-term liabilities, are included in the accompanying Statement of Net Position. The Statement of Activities presents changes in net position. Under the accrual basis of accoun ting, 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 eliminated except those representing balances between the governmental activities and the business-type activities, which are presented as internal balances and eliminated in the total primary government column. In the Statemen t of Activities, internal service fund transactions have been eliminated; however, those transactions between gove rnmental 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 (expenditures and other financing uses) in fund balances.

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

Revenues are 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 enou gh 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 reve nue 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 state 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 th e 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, 2024
49 Note 1 – Summary of Significant Accounting Policies (Continued)

B. Basis of Accounting and Measurement Focus (Continued)

Governmental Fund Financial Statements (Continued)
The City reports 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 of housing, environmental activities, and land use improvement, including funding received from the U.S. Department of Housing and Urban Development (HUD), the U.S. Environmental Protection Agen cy, and California Department of Housing & Community Development (HCD) and to account for f ees received from developers to fund park and recreation facilities.

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

 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 Financial Statements

Proprietary funds 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 princi pal operating revenues of the proprietary funds are charges to customers for sales and services. Operating e xpenses 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 stat ements. 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 charges, fees, federal, state and county grants and all operating costs associated with the operation of the City’s bus line.

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
50 Note 1 – Summary of Significant Accounting Policies (Continued)

B. Basis of Accounting and Measurement Focus (Continued)

Proprietary Fund Financial Statements (Continued)
 Sewer Enterprise Fund (Nonmajor) - The Sewer Fund acc ounts for user charges, fees and all operating costs associated with th e operation, maintenance, upgrade and pe riodic reconstruction of the City’s sanitary sewer system.
 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 to be a major fund for the year ended June 30, 2024.

C. Cash, Cash Equivalents, and Investments

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

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 spec ified 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 id entical 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 re flect 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 activ ities 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, 2024
51 Note 1 – Summary of Significant Accounting Policies (Continued)

G. Inventories and Prepaid Items

Inventories within the various fund types consist of materials and supplies which are valued at cost on a first-in, first-out basis. Reported expenditures reflect the consumption method of rec ognizing inventory-related expenditures.

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

A nonspendable 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, capital asset s 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 infrastructure 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 divided into subsystems. For example, the street 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 operating department maintains information regarding the subsystems.

Major outlays for capital assets and improvements are cap italized 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 systems, the City elected to use the “Basic Approach”.

The intangible right‐to‐use asset includes lease assets or subscription-based information technology arrangements (“SBITA”) assets (“subscription asset”). These intangibl e assets are recorded at the amount of the initial measurement of the lease liabilities or SBITA liabilities (“subscription liabilities”) and adjusted by any lease made to the lessor or subscription payments to the SBITA vendor at or before the commencement of the lease or subscription term, less any incentives received from the lessor or SBITA vendor at or before the commencement of the lease or subscription term along with any initial di rect costs that are ancillar y charges necessary to place the lease assets into service or subscription implementati on costs. Lease assets are amortized using the straight- line method over the shorter of the lease term or the us eful life of the underlying asset, unless the lease contains a purchase option that the City has determined is reasona bly certain of being exercised. In this case, the lease asset is amortized over the useful life of the underlying asset. Subscription assets are amortized over the shorter of the subscription term or the useful life of the underlying Information Technology assets.

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

The lives used for depreciation purposes are as follows:

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
City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
52 Note 1 – Summary of Significant Accounting Policies (Continued)

I. Deferred Outflows and Inflows of Resources

The statement of net position and balance sheet – gove rnmental funds 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.

J. Interest Payable

In the Government-wide Financial Stat ements, interest payable on long-term debt is recognized 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. Th is 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

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 asset s are not included in the measurement of the lease liability.

At the commencement of a lease, the lease liability is measured at the pr esent 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.

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
53 Note 1 – Summary of Significant Accounting Policies (Continued)

M. Leases (Continued)

Lease assets are recorded at the amount of the initial measurement of the lease lia bilities 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 us eful life of the underlying asset, unless the lease contains a purchase option that the State has determined is reasona bly certain of being exercised. In this case, the lease asset is amortized over the useful life of the underlying asset.

Key estimates and judgments related to leases include how the City dete rmines (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 the interest rate charged by the lessor is not provided, the C ity generally uses its estimated in cremental 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 certa in to exercise. The City monitors changes in circumstances 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 pension liability, defe rred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the plans and additions to/deductions from the plans’ fiduciary net position have been determined on the same basis as they are reported by the plans. For this purpose, benefit 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:

Valuation Date June 30, 2022
Measurement Date June 30, 2023
Measurement Period July 1, 2022 to June 30, 2023

Gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time. The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are 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 differe nce between projected and actual earnings is amortized straight-line over 5 years. All other amounts are amorti zed straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period.

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
54 Note 1 – Summary of Significant Accounting Policies (Continued)

O. Other Postemployment Benefits (“OPEB”)

For the purpose of measuring the net OPEB liability, de ferred 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, 2022
Measurement Date June 30, 2024
Measurement Period July 1, 2022 to June 30, 2023

Gains and losses related to changes in total OPEB li ability 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, in active, 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 reporte d are also recorded if the probable amount of loss can be reasonably estimated. The City is self-insured for ge neral liability in the amount of $750,000 per claim and $250,000 per claim for GTrans. In addition, City also self-insured for workers’ compensation for $750,000 per claim for both the City and GTrans. Losses in excess of $750,000 for the City and $2 50,000 for GTrans, up to $25,000,000 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. Subscription Based Information Technology Arrangements Liabilities

The City recognizes subscription liabilities with an initial, individual value of $5,000 or more with a subscription term greater than one year in the government-wide and proprietary fund financial statements. Variable payments based on future performance of the City , usage of the underlying IT assets, or number of user seats are not included in the measurement of the subscription liability.

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

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
55 Note 1 – Summary of Significant Accounting Policies (Continued)

Q. Subscription Based Information Technology Arrangements Liabilities (Continued)

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

The City monitors changes in ci rcumstances that would require a remeasurement of its SBITA and will remeasure any subscription asset or liab ility if certain changes occur that ar e expected to significantly affect the amount of the subscription liability.

R. 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 usi ng 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. Consequently, long-term debt is shown as a reconciling item in the Reconciliation of the Government al Funds Balance Sheet to the Government-Wide Statement of Net Position.

S. 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, 2023 Unsecured, redemptions, and SB813 taxes December 20, 2023 Homeowners' exemption, secured, and SB813 taxes January 19, 2024 Homeowners' exemption, secured, and SB813 taxes February 20, 2024 Redemptions, secured, and SB813 taxes March 20, 2024 Secured and SB813 taxes
April 19, 2024 Secured and SB813 taxes
May 20, 2024 Redemptions, homeowners' exemption, secured, and SB813 taxes June 20, 2024 Homeowners' exemption, SB813 taxes
July 19, 2024 Secured and SB813 taxes
August 20, 2024 Secured, redemptions, unsecured, and SB813 taxes City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
56 Note 1 – Summary of Significant Accounting Policies (Continued)

T. Net Position and Fund Balances
In the Government-Wide Financial Statements and proprietary fund financial statements, net position is classified as follows:

Net Investment in Capital Assets – This component of net position c onsists of capital assets, net of accumulated depreciation and amortiza tion, reduced by the outstanding ba lances of retention payable and debt that are attributable to the acquisition, construction, or improvement of those assets.

Restricted – This component of net position consists of restricted assets reduced by liabilities and deferred outflows and inflows of resources related to those assets.

Unrestricted – This component of net positi on 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 governments, as well as restrictions imposed by law through constitutional provisions or enabling legislation.

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 in to 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 specific purposes exceed the amounts that are restricted, committed or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund.

Spending Policy
Government-Wide Financial Statements and the Proprietary Fund Financial Statements When expenses are incurred for purposes for which both restricted and unr estricted components of net position are available, the City’s policy is to apply the restrict ed component of net position first, then the unrestricted component of net position as needed.

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
57 Note 1 – Summary of Significant Accounting Policies (Continued)

T. Net Position and Fund Balances (Continued)

Spending Policy (Continued)
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, excep t for instances wherein an ordinance specifies the fund balance:
 Restricted
 Committed
 Assigned
 Unassigned
U. 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.

V. Implementation of New GASB Pronouncements

For the year ended June 30, 2024, the financial stat ements include the adoption of GASB Statement No. 100, Accounting Changes and Error Corrections . The primary objective of this statement is to enhance accounting and financial reporting requirements for accounting cha nges (such as changes in accounting principles and estimates) and error corrections to provide more unde rstandable, reliable, cons istent, and comparable information for making decisions or assessing accountability.

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
58 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, 2024 for its governmental activities of $(28, 496,853). The deficit was mainly due to the reporting of the aggregate net pension liabilities, the aggregate net OPEB liabilities and the pension obligation bonds issued to pay for the unfunded pension liabilities. The aggregate net pension liabilities reported were $27,771,137 and $1,839,594 for governmental activities and business-type activities, resp ectively. The aggregate net OPEB liabilities were $63,718,901 and $8,263,284 for governmental activities and business- type activities, respectively. The Pension Obligation Bonds were $70,547,863 a nd $19,862,137 for governmental activities and business-type activities, respectively.

The following funds had a deficit fund balance/net position at June 30, 2024:

Nonmajor Governmental Funds:
2014 Taxable Lease Revenue Refunding
Bonds Debt Service Fund
Internal Service Funds:

$ (1,205)
Workers' Compensation Fund (10,056,219)
In addition, the GTrans Enterprise had deficit unrestricted net position of $(22,805,893) at June 30, 2024.

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

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 treasurer $ 81,956 $ 95,646 $ 13,690
Public safety
L.A. County Fire Department 13, 493,514 13,689,106 195,592 Debt service:

Principal

-

59,844

59,844
Interest and fiscal charges - 21,450 21,450
City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
59 Note 2 – Stewardship, Compliance and Accountability (Continued)

B. Expenditures in Excess of Appropriations (Continued)

Excess of
Expenditures over
Fund Appropriations Expenditures Appropriations
Economic Development Grants Special Revenue Fund
Capital outlay

-

198,426

198,426
2006 Refunding COP’s, Series A Debt Service Fund
Debt service:

Interest and fiscal char
ges

360,189

360,431

242
2014 Taxable Lease Revenue Refunding Bonds Debt Service Fund Debt service:

Interest and fiscal charges

438,444

438,694

250
2020 Taxable Pension Obligation Bonds Debt Service Fund Debt service:

Interest and fiscal charges

2,258,500

2,258,750

250
Nonmajor Governmental Funds:

Prop C Local Return Special Revenue Fund
Public works 41,228 41,300 72
Gas Tax Special Revenue Fund
Public works 574,300 603,982 26,682
Debt service:

Principal retirement - 59 59
Public Safet Grants Special Revenue Fund
Public safety 276,126 286,273 10,147
Capital outlay - 8,357 8,357
Public Works Grants Special Revenue Fund
Recreation and human services

10,000

59,307

49,307
Debt service:

Principal retirement - 4,489 4,489
Interest and fiscal charges - 28,826 28,826
Human Services Grants Special Revenue Fund
Debt service:

Principal retirement - 4,193 4,193

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
60 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, 2024:

Governmental
Activities
Business-Type
Activities

Total
Cash and investments $ 95,601,484 $ 17,780,743 $ 113,382,227 Cash and investments held by fiscal agents 14,446,752 - 14,446,752 Total cash and investments $ 110,048,236 $ 17,780,743 $ 127,828,979

The City’s cash and investments at June 30, 2024, in more detail:

Cash:

Petty cash $ 5,670
Demand deposits 19,666,457
Total cash and cash equivalents 19,672,127
Investments:

Money market mutual fund 140,283
U.S. Treasury 13,610,682
Local Government investment pools 55,728,320
Corporate notes 9,618,210
Local Agency Investment Fund 5,486,588
U.S. Government sponsored enterprise securities 6,597,051 Foreign negotiable certificates of deposit 2,528,965
Total investments 93,710,099
Total cash and investments 113,382,226
Cash and investments with fiscal agents 14,446,753
Total $ 127,828,979

A. Deposits
The carrying amounts of the City’s demand deposits were $19,666,457 at June 30, 202 4. Bank balances at that date were $19,666,457, 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 colla teral. This Code states that colla teral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in the City's name.

The market value of pledged securities must equal at least 110% of the City's cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City’s total cash deposits. The City may waive collateral requirements for cash deposits, deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation (“FDIC”). The City did not waive the collateral requirement for deposits insured by FDIC.

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
61 Note 3 – Cash and Investments (Continued)
The City follows the practice of poo ling cash and investments of all funds, except for funds required to be held by fiscal agents under the provisions of bond indent ures. Interest income earned on pooled cash and investments is allocated on an accounting period basis to the various funds based on the period-end cash and investment balances. Interest income from cash and inv estments with fiscal agents is credited directly to the related fund.

B. Investments

Under the provisions of the City’s investment policy, and in accordance with California Government Code, the following investments are authorized:

Authorized Investment Type
Maximum
Maturity
M aximum
Percentage
of Portfolio *
M aximum
Investment in
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 L imit No Limit Medium-term notes 5 years 30% 5%
Asset-Backed, Mortgage-Backed, Mortgage Pass-
Through Securities, and Collateralized Mortgage

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
* Excluding amounts held by bond trustees that are not subject to California Government Code restrictions.

The City is a participant in LAIF which is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The City’s investments with LAIF at June 30, 2024, included a portion of the pool funds invested in Structured Notes and Asset-Backed Securities:

Structured Notes : debt securities (other than 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, 2024, the City had $5,486,588 invested in LAIF, which had invested 3.12% 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.

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
62 Note 3 – Cash and Investments (Continued)

C. Fair Value Measurement

At June 30, 2024, 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, 2024:

Measurement Input
Quoted Prices
in Active Significant
Markets for Other Observable

Investment Type

Money market mutual fund $ - $ - $ 140,283 $ 140,283 U.S. Treasury 13,610,682 - - 13,610,682
Local Government investment pools (1) - 55,728,320 - 55,728,320 Corporate notes(1) - 9,618,210 - 9,618,210
Local Agency Investment Fund - - 5,486,588 5,486,588
U.S. Government sponsored enterprise securities (1) - 6,597,051 - 6,597,051 Foreign negotiable certificates of deposit (2) - 2,528,965 - 2,528,965 Cash and investments with fiscal agents:

Money market mutual fund - 223,651 14,223,102 14,446,753 Total $ 13,610,682 $ 74,696,197 $ 19,849,973 $ 108,156,852 (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.

D. Risk Disclosures
Interest Rate Risk - As a means of limiting its exposure to fair valu e losses arising from rising interest rates, the City’s investment policy limits investments to a maximum maturity of five years. At June 30, 2024, the City had the following investment maturities:

Investment Maturities (in Years)
Investment Type Fair Value Less Than 1 Year 1 to 3 Years 4 to 5 Years Money market mutual fund $ 140,283 $ 140,283 $ - $ - U.S. Treasury 13,610,682 5,684,784 6,109,813 1,816,085
Local Government investment pools 55,728,320 55,728,320 - - Corporate notes 9,618,210 508,578 5,725,608 3,384,024 Local Agency Investment Fund 5,486,588 5,486,5588 - -
U.S. Government sponsored enterprise securities 6,597,051 1,146,853 1,453,481 3,996,717 Foreign negotiable certificates of deposit 2,528,965 1,312,703 715,329 500,933 Cash and investments with fiscal agents:

Money market mutual fund 14,446,753 14,446,753 - -
Total $ 108,156,852 $ 84,454,862 $ 14,004,231 $ 9,697,759

Custodial Credit Risk - For 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 recove r 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-deal er), 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.

Identical Assets Inputs
(Level 1) (Level 2) Uncategorized(3) Total
City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
63 Note 3 – Cash and Investments (Continued)
D. Risk Disclosures (Continued)
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, 2024, the City’s credit risks, expressed on a percentage basis, were as follows:

Credit Quality Distribution for Securities
with Credit Exposure as a Percentage of Total Investments

Investment Type
M oody's
Credit
Rating
S&P's
Credit
Rating
% of Investments
with Interest
Rate Risk
Local Agency Investment Fund Not Rated Not Rated 5.07% U.S. Treasury AAA Not Rated 12.58%
U.S. Government sponsored enterprise securities AAA AA+ 6.10% Local Government investment pools Not Rated Not Rated 51.53% Foreign negotiable certificates of deposit A2 Aa 2.34% Corporate notes A A 8.89%
Money market mutual fund P-1 Aa 13.49%
Total 100.00%
Concentration of Credit Risk - The City’s investment policy states that no more than 5% of the City’s total investment portfolio shall be invested in a single type or with a single financial institution. The only exception to these limits shall be the investment in U.S. Treasury a nd authorized pools. There are no investments in any one issuer than the external investment pools that represent 5% or more of total City investments.

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 agr eement, 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 January 2023, the monthly payment was increased from $71 to $367 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 $1,400,000 reduced by the amount already paid as of the time of purchase. As of June 30, 2024, future lease payments from the YMCA, including interest, were $369,915. Since the City has not earned the revenue for the future lease payments, there was no revenue recognized or receivables reported at June 30, 2024 for these future lease payments.

B. State Mandated Claims Reimbursement
The City recorded an outstanding receivable of $737,731 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 $737,731. 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, 2024.

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
64 Note 5 – Loans Receivable

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

Balance
July 1, 2023

Additions

Deletions

Allowance
Balance
June 30, 2024
Home-Owner Occupied Deferred Loans
CalHOM E

$ 372,094

$ -

$ (9,840)

$ -

$ 362,254
State HOME Loans 1,581,975 - (108,934) - 1,473,041
Subtotal 1,954,069 - (118,774) - 1,835,295
Spring Park Senior Villa Developer Loan 3,718,327 86,224 - (3,804,551) - Total $ 5,672,396 $ 86,224 $ (118,774) $ (3,804,551) $ 1,835,295

A. Home-Owner Occupied Deferred Loans
The City issues deferred payment loan s to home owners funded by the Fede ral Home Investment Partnerships Program (“HOME Program”) and Cal HOME to improve the living conditions of the lower income families.

These loans are to be repaid to the C ity, and the repayments of the loans are used to fund future home-owner occupied deferred loans. As of June 30, 2024, the outstanding loan balance is $1,835,295.

B. Spring Park Senior Villa Developer Loan

The City entered into a development agreement on Augus t 1, 2013, with Spring Park Senior Villa, Inc., a nonprofit organization for the development of the Spring Park Senior Villa in the City. The agreement provided funding for the development of 36 rental units and one manager unit (“the Project”) up to $2,874,115 for construction. The loan bears 3% simple interest over a term 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, 2024, the City funded $2, 874,115 for the development of the project and accrued interest in the amount of $930,436 which was required by the State of California. This results the City in reporting loans receivable in the amount of $3,804,551. However, management estimated that the loans will not be repaid due to negative residual receipts a nd reported an allowance for doubtful accounts in the amount of $3,804,551.

As a result, both the Economic Development Grants Sp ecial Revenue Fund in the governmental fund financial statements and governmental activities in the government -wide financial statements reported zero balances for loans receivable associated with the Spring Park Senior Villa as of June 30, 2024.

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
65 Due From Other Funds

Note 6 – Interfund Transactions

A. Fund Financial Statements

Due From/To Other Funds - At June 30, 2024, the City had the following due from/to other funds:

General Fund

Governmental Funds:

Nonmajor Governmental Funds $ 22,305 Total $ 22,305

The above amounts resulted from temporary reclassifications made at June 30, 2024 to cover cash shortfalls.

Transfers In/Out – During the year ended June 30, 2024, the City had the following transfers in/out, which arise in the normal course of operations:

Transfers In
Governmental Funds Enterprise Funds

Transfers Out

General
Fund
City
Capital
Projects
Fund

City
Debt
Service

Nonmajor
Governmental
Nonmajor
Sewer
Enterprise
Fund

Internal
Service
Funds

Total
Governmental Funds:

General Fund $ - $ 252,291 $2,970,462 $ 543,815 $ - $1,100,000 $ 4,866,568 Economic Development
Grants Special Revenue
Fund
1 1,042,232 - - - - 1,042,233
Deb
t Service Fund - 15,350 - - - - 15,350
Nonmajor
Governmental Funds
3,205,644 10,255,211 - - 33,317 - 13,494,172
Enterprise Funds:

Sewer 179,576 11,901 - - - - 191,477
Internal Service Funds - - - - - 1,286,852 1,286,852

Total $3,385,221 $11,576,985 $2,970,462 $2,970,461 $33,317 $2,386,852 $20,896,652

Due To Other Funds
City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
66 Note 6 – Interfund Transactions (Continued)

B. Fund Financial Statements (Continued)

Transfers In/Out (Continued)
General Fund transferred $252,291 to the City Capital Pr ojects Fund to fund the deferred maintenance projects, $2,970,462 to Debt Service Fund for debt service payments and bank admin fees, $543,815 to Nonmajor Governmental Funds to cover defi cit grants funds and FEMA unallowabl e expenditures, and $1,100,000 to Internal Service Funds to pay as you go general liability and workers’ compensation liability.

Economic Development Grants Special Revenue funds transferred $1,042, 232 to Nonmajor Governmental Funds to fund capital projects.

Transfers of $15,350 from Debt Service Fund to the City Capital Projects Fund was to fund for community projects.

Nonmajor Governmental Funds transfers to the General Fund consists of $1,566,822 for fiscal year 2024 ARPA claims and qualified expenditures, $988,520 for job costs relating capital projects, $75,500 for police department expenditures, $183,259 for street sweeping program, and $571,120 for tree maintenance and street maintenance program. Transfers from Nonmajor Governmental Funds of $10,255,211 to the City Capital Projects Fund are for grant funded projects, $33,317 to Nonmajor Sewer En terprise Fund is for reimbursement of street sweeping supplies and maintenance.

Sewer Enterprise Funds transfers consists of transfer of $179,576 to the General Fund for job costs related to capital projects and $11,901 to City Capital Projects Fund to fund the sewer funded capital projects.

Internal Service Funds transfers of $1,286,852 to Internal Service Funds to pay as you go workers’ compensation liability for $400,000 and pay as you general liability for $886,852.

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
67 Note 7 – Capital Assets
A. Governmental Activities
A summary of changes in the capital assets for the governmental activities for the year ended June 30, 2024 is as follows:

Governmental Activities

Balance
July 1, 2023

Additions

Deletions

Transfers
Balance
June 30, 2024
Capital assets, not being depreciated:

Land $ 11,820,349 $ 2,173,474 $ - $ - $ 13,993,823
Monuments 63,893 - - - 63,893
Construction in progress 6,710,764 5,293,880 - (3,373,805) 8,630,839 Total capital assets, not being depreciated 18,595,006 7,467,354 - (3,373,805) 22,688,555 Capital assets, being depreciated:

Buildings/structures and improvements 26,616,509 1,315,515 - - 27,932,024 Machinery and equipment 13,256,229 323,728 (233,913) - 13,346,044 Infrastructure:

Street lights network 1,292,393 - - - 1,292,393
Traffic lights network 12,940,788 - - - 12,940,788
Roadway network 62,980,096 3, 743,246 - 3,373,805 70,097,147 Total capital assets, being depreciated 117,086,015 5,382,489 (233, 913) 3,373,805 125,608,396 Less accumulated depreciation for:

Buildings/structures and improvements

(19,827,664)

(716,239)

-

-

(20,543,903)
Machinery and equipment (10,722,103) (784,040) 212,157 - (11,293,986) Infrastructure:

Street light network (1,076, 996) (43,080) - - (1,120,076) Traffic lights network (12,689,402) (12,569) - - (12,701,971) Roadway network (33,459,819) (1,403,018) - - (34,862,837) Total accumulated depreciation (77,775,984) (2,958,946) 212,157 - (80,522,773) Total capital assets, being depreciated, net 39,310,031 2,423,543 (21, 756) 3,373,805 45,085,623 Intangible assets, being amortized
Right-to-use lease assets-equipment 729,511 259,359 (83,343) - 905,527 Right-to-use subscription assets 1,456,363 - (2) - 1,456,361 Total intangible assets, being amortized 2,185,874 259,359 (102,535) - 2,361,888 Less accumulated amortization for:

Right-to-use lease assets-equipment (272,476) (192,016) 107,092 - (357,400) Right-to-use subscription assets (337,642) (443,641) 15 - (781,268) Total accumulated amortization (610,118) (635,657) 107,107 - (1,138,668) Total intangible assets, being amortized, net 1,575,756 (376,298) 23,762 - 1,223,220 Governmental activities capital assets, net $ 59,480,793 $ 9,514,599 $ 2,006 $ - $ 68,997,398 Depreciation and amortization expenses were charged to functions/programs of the governmental activities for the fiscal year ended June 30, 2024 as follows:

Depreciation Amortization
General government $ 673,159 $ 311,446
Public safety 784,040 141,446
Public works 1,403,018 92,477
Community development 55,649 43,484
Recreation and human services 43,080 46,804
Total depreciation expense $ 2,958,946 $ 635,657
City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
68 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, 2024 is as follows:

Business-Type Activities

Balance
July 1, 2023

Additions

Deletions

Transfers
Balance
June 30, 2024
Capital assets, not being depreciated:

Land

$ 12,956,405

$ -

$ - $

-

$ 12,956,405
Construction in progress 7,804,434 30,674,597 - (26,793,934) 11,685,097 Total capital assets, not being depreciated 20,760,839 30,674,597 - (26,793,934) 24,641,502 Capital assets, being depreciated:

Buildings/structures and improvements

39,893,428

-

-

-

39,893,428
Buses 43,375,270 - (7,888, 993) 25,645,653 61,131,930
Machinery and equipment 12,762,755 - (527,556) 1,118,410 13,353,609 Furniture and fixtures 1,639, 889 - (29,852) 29,871 1,639,908 Infrastructure 11,184,496 - - - 11,184,496
Total capital assets, being depreciated 108,855,838 - (8,446,401) 26,793,934 127,203,371 Less accumulated depreciation for:

Buildings/structures and improvements

(14,832,170)

(1,022,908)

-

-

(15,855,078)
Buses (32,105,744) (1,997,967) 7,888,993 - (26,214,718) Machinery and equipment (10,496,842) (999,360) 527,556 - (10,968,646) Furniture and fixtures (1,575,759) (42,179) 29,852 - (1,588,086) Infrastructure (10,662,315) (33,689) - - (10,696,004)
Total accumulated depreciation (69,672,830) (4,096,103) 8,446,401 - (65,322,532) Total capital assets, being depreciated, net 39,183,008 (4,096,103) - 26,793,934 61,880,839 Intangible assets, being amortized
Right-to-use lease assets-equipment

26,484

20,415

(26,484)

-

20,415
Right-to-use subscription assets 407,999 - (34;592) - 373,407 Total intangible assets, being amortized 434,483 20,415 (61,076) - 393,822 Less accumulated amortization for:

Right-to-use lease assets-equipment (13,242) (15,963) 26,484 - (2,721) Right-to-use subscription assets (105,297) (132,824) 11,560 - (226,561) Total accumulated amortization (118,539) (148,787) 38,044 - (229,282) Total intangible assets, being amortized, net 315,944 (128,372) (23,032) - 164,540 Business-type activities capital assets, net $ 60,259,791 $ 26, 450,122 $ (23,032) $ - $ 86, 686,881

Depreciation and amortization expenses for business-type activities for the year ended June 30, 2024 was charged as follows:

Depreciation Amortization
Gtrans major enterprise fund $ 3,818,690 $ 107,029
Sewer nonmajor enterprise fund 170,383 25,795
Total depreciation expense $ 3,989,073 $ 132,824
City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
69 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, 2024 is as follows:

Balance Balance Due within Due in more
July 1, 2023 Additions Deletions June 30, 2024 One Year One Year 2006 Refunding Certificates of
Participation Series A - publicly offered $ 5,940,000 $ - $ (665,000) $ 5,275,000 $ 705,000 $ 4,570,000 2007 Refunding Revenue
Bonds, Series A - publicly offered 1, 195,000 - (125,000) 1,070,000 130,000 940,000 2014 Taxable Lease Revenue
Refunding Bonds - publicly offered 8,750,000 - (70,000) 8,680,000 70,000 8,610,000 Bond discount - 2014 Taxable
Lease Revenue Refunding Bonds (178,289) - 13,884 (164,405) (13,884) (151,521) 2017 Direct Purchase Lease
- Private placement 285,000 - (285,000) - - -
2016 SCE On-Bill Financing Loan
- Direct borrowing 29,065 - (14,296) 14,769 7,769 7,000 2020 Taxable Pension Obligation
Bonds - publicly offered 73, 832,926 - (3,285,063) 70,547,863 3,745,440 66,802,423 2021 Lease Revenue Bonds
- Publicly offered 12,440,000 - (465,000) 11,975,000 490,000 11,485,000 Bond premium - 2021 Lease
Revenue Bonds 1,902,003 - (106,654) 1,795,349 106,654 1,688,695 Loan payable 3,718,327 86,224 - 3,804,551 - 3,804,551
Lease payable 459,635 281,987 (197,145) 544,477 149,396 395,081 Subscription liabilities 1,032,161 - (414,690) 617,471 417,460 200,011 Claims payable 18,340,358 5,665,770 (8,296,864) 15,709,264 3,915,095 11,794,169 Compensated absences 9,224,976 4,459,971 (3,263,825) 10,421,122 2,084,224 8,336,898 Total $ 136,971,162 $ 10,493,952 $ (17,174,653) $ 130,290,461 $ 11,807,154 $ 118,483,307

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 Proj ect, 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 fu nded by the 2006 Series A and B Certificates and the balance of $1 million from other av ailable City funds. Upon payment of the Initial Amount, the 1999 Leases as well as the pledges and security interests granted in co nnection 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, 2024
70 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, 2024 totaled $5,275,000. The annua l debt service requirements on these certificates are as follows:

Fiscal Year Principal Interest Total
2025

$ 705,000

$ 314,056 $ 1,019,056
2026 750,000 267, 641 1,017,641
2027 800,000 218, 196 1,018,196
2028 850,000 165, 561 1,015,561
2029 905,000 109, 577 1,014,577
2030-2031 1,265,000 59, 494 1,324,494
Total $ 5,275,000 $ 1,134,525 $ 6,409,525

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 Authority Revenue Bonds, 2001 Series A, to provide a reserve fund for the Bonds, and to pay certain costs of issuance of th e 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. Prin cipal 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 ref unding revenue bonds debt service payments will be made from the debt service funds.

The amount outstanding at June 30, 2024 totaled $1, 070,000. The annual debt service requirements on these bonds are as follows:

Fiscal Year Principal Interest Total
2025

$ 130,000

$ 54,325 $ 184,325
2026 135,000 47, 825 182,825
2027 145,000 41, 075 186,075
2028 155,000 33, 825 188,825
2029 160,000 25, 881 185,881
2030-2031 345,000 26,351 371,351
Total $ 1,070,000 $ 229,282 $ 1,299,282

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
71 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 Lease Revenue Refunding Bonds, Series 2014 in the amount of $9,110,000 to current refund 2006 Certificate of Particip ation, 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 a nnual installments ranging from $55,000 to $1,430,000, 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, 2024 totaled $8, 680,000. The annual debt service requirements on these bonds as follows:

Fiscal Year Principal Interest Total
2025

$ 70,000

$ 433,034 $ 503,034
2026 75,000 429, 709 504,709
2027 75,000 426, 148 501,148
2028 80,000 422, 586 502,586
2029 85,000 418, 787 503,787
2030-2034 5,875,000 1,546,253 7,421,253
2035-2036 2,420,000 170,500 2,590,500
Total $ 8,680,000 $ 3,847,017 $ 12,527,017

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
72 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, 2024 totaled $14,769. The annual debt service requirements on this loan as follows:

Fiscal Year Principal Interest Total
2025

$ 7,769

$ - $ 7,769
2026 7,000 - 7,000
Total $ 14,769 $ - $ 14,769

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

In November 2020, the City issued the Taxable Pension 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. The 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, 2024
73 Note 8 – Long-Term Liabilities (Continued)

A. Governmental Activities (Continued)

2020 Taxable Pension Obligation Bonds – Original Issuance $101,490,000 ($79,193,585 for Governmental Activities) (Continued)
The amount outstanding for the governmental activities at June 30, 2024 totaled $70,547,863. The annual debt service requirements for the governmental activities on these bonds are as follows:

Fiscal Year Principal Interest Total
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 4,131,689 1, 965,558 6,097,247
2029 4,244,832 1, 855,530 6,100,362
2030-2034 23,143, 698 7,356,447 30,500,145
2035-2039 27,284,128 3,207,018 30,491,146
Total $ 70,547,863 $ 20,795,220 $ 91,343,083

2021 Lease Revenue Bonds – Original Issuance $13,155,000 In September 2021, the City 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 payable 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 $11,752,150 at June 30, 2023.

The amount outstanding at June 30, 2024 totaled $11,975,000. The a nnual debt service requirements on these bonds as follows:

Fiscal Year Principal Interest Total
2025

$ 490,000

$ 452,750 $ 942,750
2026 510,000 428, 250 938,250
2027 540,000 402, 750 942,750
2028 565,000 375, 750 940,750
2029 595,000 347, 500 942,500
2030-2034 3,415,000 1,283,100 4,698,100
2035-2039 4,060,000 642,450 4,702,450
2040-2041 1,800,000 81,450 1,881,450
Total $ 11,975,000 $ 4,014,000 $ 15,989,000
City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
74 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 California 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, 2024, the City funded $2,874,115 for the development of the project and accrued interest in the amount of $930, 436. This results in the loans payable in the amount of $3,804,551 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 3.305% based on the term of the agreements.

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

Fiscal Year Principal Interest Total
2025 $ 150,995 $ 14,562 $ 165,557
2026 125,690 10, 959 136,649
2027 110,141 7, 382 117,523
2028 105,935 3, 734 109,669
2029 32,539 1,303 33,842
2030 - 2032 19,177 1,608 20,785
Total $ 544,477 $ 39,548 $ 584,025

Subscription Liabilities

The City has entered into subscriptions for information technology arrangements. Th e terms of the arrangements range from 24 to 60 months with implicit rates used be tween 0.552% to of 3.305%. Principal and interest to maturity are as follows:

Fiscal Year Principal Interest Total
2025 $ 417,460 $ 14,150 $ 431,610
2026 135,589 4, 183 139,772
2027 64,422 1,283 65,705
Total $ 617,471 $ 19,616 $ 637,087
Legal Debt Margin

The City is subject to legal debt margin and the City ’s legal debt limit was in the amount of $324,628,325 at June 30, 2024.

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
75 Note 8 – Long-Term Liabilities (Continued)

A. Governmental Activities (Continued)

Compensated Absences
The long-term portion of compensated absences payable has been accrued for the Governmental Activities on the Government-Wide Financial Statements. In prior years, the General Fund has typically been used to liquidate the liability. The balance outstanding at June 30, 2024 was $10,421,122.

B. Business-Type Activities
The following is a summary of cha nges in long-term liabilities for business- type activities for the year ended June 30, 2024:

Balance
July 1, 2023

Additions

Deletions
Balance
June 30, 2024
Due within
One Year
Due in more
One Year
2020 Taxable Pension Obligation
Bonds - publicly offered

$ 20,787,074

$ -

$ (924,937)

$ 19,862,137

$ 1,054,560

$ 18,807,577
Lease payable 13,353 20,415 (15,884) 17,884 3,903 13,981 Subscription liabilities 279,567 - (125,277) 154,290 126,910 27,380 Compensated absences 1,921,404 1,198,744 (1,083,083) 2,037,065 - 2,037,065 Total $ 23,001,398 $ 1,219,159 $ (2,149,182) $ 22,071,375 $ 1,185,373 $ 20,886,002 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 Pension 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. The bond debt service payments will be made from the debt service funds.

The amount outstanding for the business-type activities at June 30, 2024 totaled $19, 862,137. The annual debt service requirements for the business-type activities on these bonds are as follows:

Fiscal Year Principal Interest Total
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 1,163,312 553, 420 1,716,732
2029 1,195,168 522, 440 1,717,608
2030-2034 6,516,302 2,071,269 8,587,571
2035-2039 7,680,869 902,963 8,583,832
Total $ 19,862,137 $ 5,855,069 $ 25,717,206
City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
76 Note 8 – Long-Term Liabilities (Continued)

B. Business-Type Activities (Continued)

Lease Payable
The City’s business-type activities have entered leases for the machine uses. The terms of the agreements range from 18 months to 60 months. The calculated interest ra tes used were between 0.185% to 3.305% based on the term of the agreements.

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

Fiscal Year Principal Interest Total
2025

$ 3,903

$ 532 $ 4,435
2026 4,034 401 4,435
2027 4,169 266 4,435
2028 4,309 126 4,435
2029 1,469 10 1,477
Total $ 17,884 $ 1,335 $ 19,219
Subscription Liabilities

The City’s business-type activities has entered into subscriptions for information technology arrangements. The terms of the arrangements range from 24 to 60 months with implicit rates used between 0.552% to of 3.305%.

Principal and interest to maturity are as follows:

Fiscal Year Principal Interest Total
2025 $ 126,910 $ 4,028 $ 130,938
2026 16,097 850 16,947
2027 11,283 373 11,656
Total $ 154,290 $ 5,251 $ 159,541
Compensated Absences

All vested vacation and compensatory leave time is rec ognized 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, 2024 was $2,037,065.

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
77 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 cl aims in excess of $750,000 to $25,000,000 with 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, 2024, $15,709,264 has been accrued for the City’s self-insurance programs, of which $3,915,095 is considered to be cu rrent. Said accruals represent estimates of amounts to be paid for reported claims and incurred but unreported clai ms based upon past experience, modified for current trends and information. While the ultimate amounts of losses incurred through June 30, 2024 are dependent on future developments, based upon info rmation 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 the prior three (3) fiscal years, no se ttlements exceeded the City’s insurance coverage.

Changes in the balances of claims liabilities during the past three years are as follows:

Claims Payable

Beginning
Balance
Expenses and
Changes in
Estimates
Claims
Payments
Ending
Balance
Due within
One Year
Due in more
than One Year
2021-2022 $ 10,604,474 $ 6, 221,285 $ (22,134) $ 16,803,625 $ 12,477,264 $ 4,326,361 2022-2023 16,803,625 8, 658,461 (7,121,728) 18,340,358 4,811,358 13,529,000 2023-2024 18,340,358 5, 665,770 (8,296,864) 15,709,264 3,915,095 11,794,169

B. Purchased Insurance

Property Insurance - Several insurance companies underwrite this insurance protection. The City is currently insured according to a schedule of covered property submitted by the City to A lliant Property Insurance Company. Total all-risk property insurance coverage is $100 million. There is a $10,000 per loss deductible.

Crime Insurance - The City purchases crime insurance coverage w ith a limit of $2 million per occurrence. This policy provides coverage for all City employees. There is a $10,000 per loss deductible.

Cyber Security Insurance - The City purchases cyber security insuran ce coverage with a limit of $1 million per occurrence and $2 million aggregate limit.

C. Adequacy of Protection
During the past three fiscal years none of the above pr ograms of protection have ha d 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, 2024
78 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, 2023 and pension expense for the year then ended.

Governmental
Activities
Business-Type
Activities

Total
Deferred outflows of resources:

Pension contribution made after measurement date:

Safety $ 2,994,848 $ - $ 2,994,848 Change in assumptions:

Miscellaneous 1,662,511 343,966 2,006,477
Safety 1,101,845 - 1,101,845
Total change in assumptions 2,764,356 343,966 3,108,322 Difference in projected and actual earnings on pension investments:

Miscellaneous 7,688,126 1,590,637 9,278,763
Safety 2,583,684 - 2,583,684
Total difference in projected and actual earnings on pension investments 10,271,810 1,590,637 11,862,447 Differences between expected and actual experience
Miscellaneous 1,066,976 220,753 1,287,729
Safety 1,386,119 - 1,386,119
Total differences between expected and actual experience 2,453,095 220,753 2,673,848 Adjustment due to differences in proportions:

Safety 11,357,942 - 11,357,942
Total deferred outflows of resources $ 29,842,051 $ 2,155,356 $ 31,997,407 Aggregate net pension liabilities:

Miscellaneous $ 8,891,421 $ 1,839,594 $ 10,731,015
Safety 18,879,716 - 18,879,716
Total aggregate net pension liabilities $ 27,771,137 $ 1,839,594 $ 29,610,731 Deferred inflows of resources:

Differences between expected and actual experience:

Miscellaneous $ 1,579,801 $ 326,854 $ 1,906,655
Safety 118,666 - 118,666
Total differences between expected and actual experience 1,698,467 326,854 2,025,321 Difference between City's contribution and proportionate share of contributions:

Safety

11,520,964

-

11,520,964
Adjustment due to differences in proportions:

Safety

7,315,764

-

7,315,764
Total deferred inflows of resources $ 20,535,195 $ 326,854 $ 20,862,049 Pension Expense:

Miscellaneous

$ 4,033,293

$ 834,470

$ 4,867,763
Safety 7,280,030 - 7,280,030
Total pension expense $ 11,313,323 $ 834,470 $ 12,147,793 City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
79 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 pension plan for miscellaneous employees a nd a cost-sharing multiple-employer defined benefit plan for safety employees. CalPERS act s as a common investment an d administrative agent for participating public entities within the State of Californi a. 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, 2022 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 adju stments, 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 compensati on. 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 requ irement. 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 service, 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 fu ll-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, 2024
80 Note 10 – Retirement Plans (Continued)

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

General Information about the Pension Plan (Continued)
Benefit Provided (Continued)

Benefit terms provide for annual cost-of-living adjustments 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 compound basis by 2 percent.

Employees Covered by Benefit Terms

At June 30, 2022, the valuation date, the following employees were covered by the benefit terms:

Miscellaneous
Plans
Safety

Classic PEPRA
Active employees 391 37 27
Transferred and terminated employees 227 4 2
Retired Employees and Beneficiaries 385 33 0
Total 1,003 74 29
Contributions
Section 20814(c) of the California Public Employees ’ Retirement Law (“PERL”) re quires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate . The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees dur ing the year, with an additional amount to finance any unfunded accrued liability. The employer is required to contribute the di fference between the actuarially determined rate and the contribution rate of employees. The required contribution rates are as follow:

Measurement Period June 30, 2023
Plans
Miscellane ous Safety
Classic PEPRA Classic PEPRA
Employer Contribution Rate 9.180% 9.180% 25.640% 13.660% Employee Contribution Rate 7.000% 6.750% 9.000% 13.750%

Current Fiscal Year Ended June 30, 2024
Plans
Miscellane ous Safety
Classic PEPRA Classic PEPRA
Employer Contribution Rate 10.68% 10.68% 29.091% 14.5%
Employee Contribution Rate 7.000% 7.750% 9.000% 14.5%
City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
81 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, 2022 valuation was rolled forward to determine the June 30, 2023 total pension liability, based on following actuarial methods and assumptions:

Actuarial Cost Method
Actuarial Assumptions:

Discount Rate
Inflation
Salary Increases
M ortality Rate Table1
Post Retirement Benefit Increase
Entry Age Actuarial Cost Method

6.90%

2.300%
Varies by Entry Age and Service
Derived using CalPERS’ Membership Data for all Funds.

The lesser of contract COLA or 2.30% until Purchasing Power Protection Allowance floor on purchasing power applies, 2.30% thereafter
1 The mortality table used for June 30, 2022 was develope d based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study fo r the period from 2001 to 2019. Pre-retirement and Post- retirement mortality rates include generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from Novermber 2021 that can be found on the CalPERS website.

Change of Assumptions

Effective with the June 30, 2022 valuation date (2022 measurement date), the accounting discount rate remained at 6.90%. In determining the long-term expect ed rate of return, CalPERS took into account long-term market return expectations as well as the expected pe nsion fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabiliti es was informed by the long- term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2022 CalPERS Experience Study and Review of Actuarial 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. Using historical return s of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 basis points.

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
82 Note 10 – Retirement Plans (Continued)

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

Net Pension Liability (Continued)
Long-term Expected Rate of Return (Continued)

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

Asset Class1
Assumed Asset
Allocation
Real Return
Years 1 - 101, 2
Global Equity - Cap-weighted 30.00% 4.54%
Global Equity - Non-cap-weighted 12.00% 3.84%
Private Equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed Securities 5.00% 0.50%
Investment Grade Corporates 10.00% 1.56%
High Yield 5.00% 2.27%
Emerging Market Debt 5.00% 2.48%
Private Debt 5.00% 3.57%
Real Assets 15.00% 3.21%
Leverage -5.00% -0.59%
100.00%

1 An expected inflation of 2.30% used for this period.
2 Figures are based on the 2021 Asset Liability Management study.

Discount Rate
The discount rate used to measure the total pension li ability was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions fro m 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 memb ers. 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.

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
83 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.

Miscellaneous Pla n
Increase (Decrease)
Total Pension Plan Fiduciary Net Net Pension
Liability Position Liability
(a) (b) (c) = (a) - (b)
Balance at June 30, 2021 (Valuation Date) $ 188,747,017 $ 182,030,050 $ 6,716,968 Changes recognized for the measurement period:

Service Cost 3,290,767 - 3,290,767
Interest on the total pension liability 12,911,242 - 12,911,242 Changes of benefit terms 274,039 - 274,039
Difference between expected and actual experience 1,931,594 - 1,931,594 Changes of assumptions - - -
Plan to plan resource movement - (8,010) 8,010
Contributions from the employer - 1,934,460 (1,934,460) Contributions from employees - 1,594,067 (1,594,067)
Net investment income - 11,006,934 (11,006,934)
Benefit payments, including refunds of employee
contributions (10,957,147)

(10,957,147)

-
Administrative expense - (133,856) 133,856
Other miscellaneous income/(expense) - - -
Net changes during July 1, 2021 to June 30, 2022 7, 450,495 3,436,448 4,014,047 Balance at June 30, 2022 (Measurement Date) $ 196,197,513 $ 185,466,498 $ 10,731,015

Proportionate Share of Net Pension Liability and Pension Expense

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

Safety Plan
Increase (Decrease)
Total Pension
Liability
(a)
Plan Fiduciary Net
Position
(b)
Net Pension
Liability (asset)
(c) = (a) - (b)
Balance at June 30, 2022 (Valuation Date) $ 245,640,403 $ 233,003,515 $ 12,636,888 Balance at June 30, 2023 (Measurement Date) 259,527,416 240,647,700 18,879,716 Net Changes during 2022-2023 13,887, 013 7,644,185 6,242,828

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
84 Note 10 – Retirement Plans (Continued)

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

Changes in the Net Pension 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 pension expense to the 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 pool as a whole on the valua tion date (June 30, 2022). The risk pool’s fiduciary net position (“FNP”) subtracted from its total pe nsion liability (“TPL”) determines the net pension liability (“NPL”) at the valuation date.

(2) Using standard actuarial roll forward methods, the risk pool TPL is then computed at the measurement date (June 30, 2023). Risk pool FNP at the measureme nt date is then subtracted from this number to compute the NPL for the risk pool at the measuremen t date. For purposes of FN P in this step and any later reference thereto, the risk pool’s FNP at th e measurement date denotes the aggregate risk pool’s FNP at June 30, 2023 less the sum of all additional side fund (or unfunded liability) contributions made by all employers during the measurement period (2022-2023).

(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 date from (3) by the amounts in step (1), the risk pool’s total TPL and FNP, respectively.

(5) The plan’s TPL as of the Measurement Date is equal to the risk pool TPL generated in (2) multiplied by the TPL ratio generated in (4). The plan’s FNP as of the Measurement Date is equal to the FNP generated in (2) multiplied by the FNP ratio generated in (4) pl us any additional side fund (or unfunded liability) contributions made by the employer on behalf of the plan during the measurement period.

(6) The plan’s NPL at the Measurement Date is the difference between the TPL and FNP calculated in (5).

Deferred outflows of resources, deferred inflows of resources, and pension expense 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:

June 30, 2022 0.183901%
June 30, 2023 0.252574%
Change - Increase (Decrease) 0.068673%
City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
85 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 pl ans as of the measurement date, calculated using the discount rate of 6.90%, as well as what the net pension liabi lity would be if it were calculated using a discount rate that is 1 percentage-point lower (5.90%) or 1 percentage-point higher (7.90%) than the current rate:

Plan's Net Pension Liability (asset)
Discount Rate - 1% Current Discount Discount Rate + 1%
(5.90%) Rate (6.90%) (7.90%)
Miscellaneous Plan $ 36,477,535 $ 10,731,015 $ (10,417,372) Safety Plan $ 54,482,260 $ 18,879,716 $ (10,227,897)

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, 2024, the City recogni zed pension expense in the amounts of $4,867,763 and $7,280,030 for the miscellaneous plan and safety plan, respectively.

As of measurement date of June 30, 2023, the City has deferred outflows and deferred inflows of resources related to pensions as follows:

Miscellaneous Plan
Deferred outflows
of Resources
Deferred inflows
of Resources
Changes of assumptions $ 2,006,477 $ -
Difference between expected and actual experience 1,287,729 (1,906,654) Net difference between projected and actual earning on
pension plan investments

9,278,763

-
Total $ 12,572,969 $ (1,906,654)
City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
86 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)

Safety Plan
Deferred outflows Deferred inflows
of Resources of Resources
Pension contribution made after measurement date $ 2,994,848 $ - Changes of assumptions 1,101,845 -
Difference between expected and actual experience 1,386,119 (118,666) Difference between projected and actual earnings on
pension plan investments 2,583,684 -
Adjustment due to differences in proportions 11,357,942 (7,315,764) Difference between City contributions and
proportionate share of contributions - (11,520,964)
Total $ 19,424,438 $ (18,955,394)

The amounts above are net of outflows and inflows recognized in the 2022-23 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 2022-23 measurement period is 3.2 and 3.7 year s, which was obtained by dividing the total service years of 3,539 and 578,205 (the sum of remaining service lifetimes of the active employees) by 1,106 and 156,271 (the total number of participants: active, inactive, and retired), respectively.

$2,994,848 reported as deferred outflows of resources related to pensions for safety plan, resulting from the City’s contributions subsequent to the measurement da te will be recognized as a reduction of the net pension liability and collectively net pension liability, respectively, in the year ending June 30, 2025.

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

M easurement Periods Deferred Outflows/ (Inflows) of Resources Ended June 30 Miscellaneous Pla n Safety Pla n
2025

$ 2,437,871 $ (5,338,421)
2026 1,904,497 1,635,106
2027 6,067,263 1,105,395
2028 256,684 72,115
2029 - -
Thereafter - -
$ 10,666,315 $ (2,525,804)
City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
87 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 defined 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. Federal 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, 2024 the City’s payroll covered by the plan was $829,098. The City made employer contributions in the amount of $30,312. There were 74 participants of the Plan as of June 30, 2024.

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, 2024, total OPEB liability and related deferred outflows of resources and deferred inflows of resources are as follows:

Governmental
Activities
Business-Type
Activities

Total

Deferred outflows of resources:

OPEB contribution made after measurement date $ 3,810,971 $ 659,227 $ 4,470,198 Change in assumptions 5,711,883 115,567 5,827,450
Differences between expected and actual experience 519,691 1,130,699 1,650,390 Differences in projected and actual earnings 10,976 313,339 324,315 Total deferred outflows of resources $ 10,053,521 $ 2,218,832 $ 12,272,353 Total other postemployment benefit liabilities $ 63,718,901 $ 8,263,284 $ 71,982,185 Deferred inflows of resources:

Change in assumptions $ 11,905,519 $ 532,968 $ 12,438,487 Differences between expected and actual experience 904,014 334,366 1,238,380 Total deferred inflows of resources $ 12,809,533 $ 867,334 $ 13,676,867 OPEB expense $ 3,707,186 $ 969,700 $ 4,676,886
City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
88 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 situati on, or non-employer contributi on 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 a nd 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 $1,531 and $1,498 per month for the calendar years 2024 and 2023, respectively.

Eligibility
All of the Plan’s employees 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 J une 30, 2024 valuation date, the following numbers of participants were covered by the benefit terms:

Plans
Governmental
Activities

GTrans

Sewer
Inactives currently receiving benefits 191 43 -
Inactives entitled to benefit payments - - -
Active employees 219 101 4

Total 410 144 4

Contributions
Fiscal Year Ended June 30, 2024
Governmental
Activities

GTrans

Total
Benefit payments $ 3,216,034 $ 724,778 $ 3,940,812 Trust contributions 1,750,000 - 1,750,000

Total $ 4,966,034 $ 724,778 $ 5,690,812

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
89 Note 11 – Other Postemployment Benefits (“OPEB”) (Continued) Net OPEB Liability
The City’s Net OPEB liability was measured as of June 30, 2023, and total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of June 30, 2023.

Significant Actuarial Assumptions Used for Total OPEB Liability

The total OPEB liability, measured as of June 30, 2023, was determined using the following actuarial assumptions:

Actuarial Cost Method
Actuarial Assumptions:

Entry Age, Level Percent of Pay
Actuarial Valuation Date June 30, 2023
Valuation of Fiduciary Net Position

Recognition of deferred inflows and outflows of
resources
Salary Increases
Discount Rate

Inflation Rate
Investment Rate of Return
Healthcare Cost Trend Rate (City Plan)

Healthcare Cost Trend Rate (Kaiser)

Preretirement Mortality:

Miscellaneous

Safety

Preretirement Mortality:

Miscellaneous

Safety
Governmental Activities and Gtrans: Fair value assets.

Sewer: No assets held in an irrevocable trust as of the measurement date.

Closed period equal to the average of the expected remaining service lives of all employees provided with OPEB.

2.75%
Governmental Activities and Sewer: 3.54%
Gtrans: 6.25%

2.50%

6.25%, net OPEB plan investment expense

6.00% for 2023, 5.50% for 2024, 5.25% for
2025-2029, 5.00% for 2030-2039, 4.75% for 2040-2049, 4.50% for 2050-2069 and 4.00% for 2070 and later years.

6.00% for 2023, 5.50% for 2024, 5.25% for
2025-2029, 5.00% for 2030-2039, 4.75% for 2040-2049, 4.50% for 2050-2069 and 4.00% for 2070 and later years.

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

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

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

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

Actuarial assumptions used in the June 30, 2023 valuation were based on a review of the plan experience during the period June 30, 2023 to June 30, 2024.

Total OPEB Liability
Change in Assumptions

Discount rate changed from 3.54% at J une 30, 2022 to 3.65% at June 30, 2023 for the governmental activities and Sewer Enterprise’s plans. No change in discount rate for GTrans Plan. Medical plan assumption, trend rate assumption, demographic assumption and mortality improvement scale were updated.

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
90 Note 11 – Other Postemployment Benefits (“OPEB”) (Continued) Total OPEB Liability (Continued)
Discount Rate
a. A long-term expected rate of return on OPEB plan investme nts – to the extent that the OPEB plan’s fiduciary net position (if any) is projected to be enough to make projected benefit payments and assets are expected to be invested using a strategy to achieve that return.

b. A yield or index rate for 20-year, tax-exempt general obligation municipal bonds with an average rating of AA/Aa or higher – to the extent that the conditions in (a) are not met. To determine a resulting single (blended) rate, the amount of the plan’s projected fiduciary net position (if any) and the amount of projected benefit payments is compared in each period of projected benefit payments. Th e discount rate used to measure the City’s total OPEB liability is based on these requirements and the following information:

Long-Term Bond Buyer

Reporting Date
Expected Return of
Measurement Date Plan Investments
20-Bond GO
Index

Discount Rate
June 30, 2024

June 30, 2023 6.25% 3.65% 3.65%

The discount rate used to measure total OPEB liability for Governmental Activities and Sewer was 3.65%. The discount rate used to measure the total OPEB liability for GTrans was 6.25% percent.

Investment Policy

The City’s policy regarding the allocation of the plan’s invested assets is established and may be amended by City management. The City participates in the California Employers' Retiree Benefit Trust (CERBT), a Section 115 trust fund dedicated to prefunding Other Postemployment Benefits for all eligible California public agencies.

The City has adopted the CERBT Strategy 1 portfolio with an objective to seek returns that reflect the broad investment performance of the financial markets through capital appreciation and investment income. The portfolio is invested in various asset classes in percentages approved by the CalPERS Board.

Asset Class Component

Target Allocation
Expected Real
Rate of Return

Benchmark
Global Equity 49.00% +/-5% MSCI All Country Would Index IM I (net) Fixed Income 23.00% +/-5% Bloomberg Barclays Long Liability Index Treasury Inflation-Protected Securities 5.00% +/-3% Bloomberg Barclays Barclays US TIPS Index Real Estate Investment Trusts 20.00% +/-5% FTSE EPRA/NAREIT Developed Liquid Index (net) Commodities 3.00% +/-3% S&P GSCI Total Return Index
Cash 0.00% +2% 91 Day Treasury Bill
100.00%
City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
91 Note 11 – Other Postemployment Benefits (“OPEB”) (Continued) Total OPEB Liability (Continued)
Long-Term Expected Rate of Return
The long-term expected rate of return on OPEB plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of investment expense and inflation) are developed for each major asset class. The calculated investment rate of return was set equal to the expected ten-year compound (geometric) real return plus inflation (rounded to the nearest 25 basis points, where appropriate). The table below provides the long-term expected real rates of return by asset class (based on published capital market assumptions).

Change in Net OPEB Liability.

Asset Class
Assumed Asset
Allocation Real Rate of Return

Global ex-U.S. Equity 49.00% 4.80%
U.S. Fixed 23.00% 1.80%
TIPS 5.00% 1.60%
Real Estate 20.00% 3.70%
Commodities 3.00% 1.90%
100.00%

Rate of Return

For the year ended on the measurement date, the annual m oney-weighted rate of return on investments, net of investment expense, was 6.42 percent. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts invested.

Change in Net OPEB Liability
The following presents the changes in the net OPEB liability for the governmental activities’ Retiree Health Plan:

Increase (Decrease)
Total OPEB
Liability
(a)
Fiduciary
Net Position
(b)
Net OPEB
Liability
(c) = (a) - (b)
Balance at June 30, 2022 $ 64,941,611 $ 173,347 $ 64,768,264 Changes recognized for the measurement period:

Service Cost 2,096,595 - 2,096,595
Interest on the total pension liability 2,325,252 - 2,325,252 Differences between expected and actual experience - - - Changes in assumptions and other inputs (980,157) - (980,157) Contributions - employer - 4,479,974 (4,479,974)
Net investment income - 11,129 (11,129)
Benefits payments (2,729,974) (2,729,974) -
Administrative expenses - (50) 50
Net changes during July 1, 2022 to June 30, 2023 711,716 1,761,079 (1,049,363) Balance at June 30, 2023 (Measurement Date) $ 65, 653,327 $ 1,934,426 $ 63,718,901 City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
92 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:

Increase (Decrease)
Total Pension
Liability
(a)
Plan Fiduciary Net
Position
(b)
Net OPEB
Liability
(c) = (a) - (b)
Balance at June 30, 2022 $ 12,673,325 $ 4,947,153 $ 7,726,172 Changes recognized for the measurement period:

Service cost 315,938 - 315,938
Interest on the total OPEB liability 794,147 - 794,147
Differences between expected and actual experience - - - Changes in assumptions - - -
Contributions - employer - 574,545 (574,545)
Net investment income - 317,552 (317,552)
Benefit payments (574,545) (574,545) -
Administrative expenses - (1,437) 1,437
Net changes during July 1, 2022 to June 30, 2023 535,540 316,115 219,425 Balance at June 30, 2023 (Measurement Date) $ 13, 208,865 $ 5,263,268 $ 7,945,597

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

Increase (Decrease)
Total Pension
Liability
(a)
Plan Fiduciary Net
Position
(b)
Net OPEB
Liability
(c) = (a) - (b)
Balance at June 30, 2022 $ 294,726 $ - $ 294,726 Changes recognized for the measurement period:

Service cost 26,422 - 26,422
Interest on the total OPEB liability 11,207 - 11,207
Differences between expected and actual experience - - - Changes in assumptions (5,457) - (5,457)
Contributions - employer - - -
Net investment income - - -
Benefit payments (9,211) - (9,211)
Administrative expenses - - -
Net changes during July 1, 2022 to June 30, 2023 22,961 - 22,961 Balance at June 30, 2023 (Measurement Date) $ 317,687 $ - $ 317,687

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
93 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 govern mental activities and the Sewer’s Retiree Health Plans, as well as what the governmental activities and the Sewer Enterprise’s total OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (2.65 percent) or 1-percentage- point higher (4.65 percent) than the current discount rate:

Plan's Net OPEB Liability
Discount Rate - 1%
(2.65%)
Current Discount
Rate (3.65%)
Discount Rate + 1%
(4.65%)
Governmental Activities $ 73,503,542 $ 63,718,901 $ 55,728,381 Sewer $ 372,311 $ 317,687 $ 273,384

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:

Plan's Net OPEB Liability
Discount Rate - 1% Current Discount Discount Rate + 1%
(5.25%) Rate (6.25%) (7.25%)

$ 9,693,849 $ 7,945,597 $ 6,496,369

OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trend Rates

The following presents the total OPEB liability 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:

Plan's Net OPEB Liability
1% Decrease Current Trend 1% Increase
Governmental Activities $ 73,503,542 $ 63,718,901 $ 55,728,381 GTrans $ 6,185,648 $ 7,945,597 $ 10,130,039
Sewer $ 258,279 $ 317,687 $ 395,954
City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
94 Note 11 – Other Postemployment Benefits (“OPEB”) (Continued)

OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB (Continued)
For the measurement period ended June 30, 2023, the governmental activities recognized expense of $3,707,186. At June 30, 2024, 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 $ 519,691 $ (904,014) Changes in assumptions 5,711,883 (11,905,519)
Net difference between projected and actual earnings
on plan investments 10,976 -
Employer contributions made subsequent to
the measurement date 3,810,971 -
Total $ 10,053,521 $ (12,809,533)

For the measurement period ended June 30, 2023, GTrans recognized expense of $948,526. At June 30, 2024, the City reported deferred outflows of res ources and deferred inflows of resources related to GTrans OPEB from the following sources:

Deferred outflows Deferred inflows
of resources of resources
Difference between expected and actual experience $ 1,120,014 $ (149,047) Changes in assumptions 59,353 (451,930)
Net difference between projected and actual earnings
on plan investments 313,339 -
Employer contributions made subsequent to
the measurement date 651,738 -
Total $ 2,144,444 $ (600,977)

For the measurement period ended June 30, 2023, Sewer recognized expense of $21,174. At June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to Sewer OPEB from the following sources:

Deferred outflows
of resources
Deferred inflows
of resources
Difference between expected and actual experience $ 10,685 $ (185,319) Changes in assumptions 56,214 (81,038)
Employer contributions made subsequent to
the measurement date

7,489

-
Total $ 74,388 $ (266,357)

The difference between projected OPEB plan investment earnings 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 7.8 years, 8.2 years, and 14.2 years for the governmental activities, the GTrans, and the Sewer, respectively, which was determined as of June 30, 2023, 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, 2024
95 Note 11 – Other Postemployment Benefits (“OPEB”) (Continued)

OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB (Continued)
$3,810,971, $651,738, and $7,489 reported as deferred outflows of r esources related to OPEB under the governmental activities, GTrans, and Sewer, respectively r esulting 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, 2025. Other amount reported as deferred inflows of resources related to OPEB will be recognized in the future OPEB expense as follows:

Measurement
Periods

Deferred Outflows/(Inflows) of Resources
Ended June 30 Governmental Activities GTrans Sewer
2025

$ (423,031) $ 141,414 $ (14,455)
2026 (175,1 32) 113,546 (14,455)
2027 (646,512) 310,148 (14,455) 2028 (1,795,833) 86,560 (14,455) 2029 (1,889, 341) 107,925 (13,843)
Thereafter (1,637,134) 132,136 (127,795)
$ (6,566,983) $ 891,729 $ (199,458)

Note 12 – Deferred 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, pe rmits 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 cont rol 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, 2024, the amount held by the Trustee for the City employees is $33,082,959.

Note 13 – Net Position and Fund Balances
A. Government-Wide Financial Statements

Net Investment in Capital Assets

The following is the calculation of net investment in capital assets at June 30, 2024:

Governmental
Activities
Business-Type
Activities
Capital Assets, net of
accumulated depreciation and amortization $ 68,997,398 $ 86,655,955 Less: outstanding principal on capital related debt, net (24,532,661) (187,573) Add: Unspent debt proceeds 12,284,636 -
Less: capital assets related accounts payable (1,670,362) (5,364,441) Less: retention payable (236,541) (23,033)
Net investments in capital assets $ 54,842,470 $ 81,080,908 City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
96 Note 13 – Net Position and Fund Balances (Continued)

B. Fund Financial Statements
Fund Balance Classification:

At June 30, 2024, fund balances are classified in the governmental funds as follows:

Economic
Development

Nonmajor

Total
General Grants Special City Capital City Debt Governmental Governmental Fund Revenue Fund Projects Fund Service Fund Funds Funds Nonspendable:

Inventories
Prepaid items and deposits
Total nonspendable

Restricted:

Economic development
Debt service
Law enforcement
Local street improvements
Community development
Capital projects
Other purposes
Total restricted

Committed:

Emergency contingency
Senior and Aquatic Center Project
Pension stabilization fund
Total committed

Assigned:

ERP and vehicle replacement
Equipment replacement
Future debt service payments
Benefit liability stabilization
Total assigned
Unassigned:

Total fund balance

$ 41,474 $ - $ - $ - $ - $ 41,474
305,509 - - 3,689 6,075 315,273
346,983 - - 3,689 6,075 356,747

-

5,971,740

-

-

-

5,971,740
- - - 2,142,222 - 2,142,222
- - - - 1,046,383 1,046,383
- - - - 8,671,919 8,671,919
- - - - 105,508 105,508
- - 301,894 12,284,636 5,394,556 17,981,086
- - - - 30,747 30,747
- 5,971,740 301,894 14,426,858 15,249,113 35,949,605

16,990,487

-

-

-

-

16,990,487
10,944,000 - - - - 10,944,000
5,374,919 - - - - 5,374,919
33,309,406 - - - - 33,309,406

6,405,840

-

-

-

-

6,405,840
11,188,041 - - - - 11,188,041
5,140,440 - - - - 5,140,440
2,962,273 - - - - 2,962,273
25,660,594 - - - - 25,660,594
300,000 - - (2,411) - 297,589
$ 59,616,983 $ 5,971,470 $ 301,894 $ 14,428,136 $ 15,255,188 $ 95,573,941 City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
97 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 financ ial 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, 2024, the City’s percentage interest is 32.08%.

Note 15 – Commitments 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 aud its of these programs have not yet been completed. Accordingly, the City’s ultimate compliance with applicable gr ant 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 $37,042,495 as of June 30, 2024.

Note 16 – Family Child Care Program

On May 30, 2023, per Section General Provisions, Sub S ection – L. Contractor’s Termination for Convenience (5 CCR 18024) of the California Department of Social Se rvices (CDSS) Funding Terms and Conditions, the City provided the CDSS its 90 days’ notice of intent to term inate the Agreement. The c ontract between CDSS and the City was terminated effective August 31, 2023, with the Family Child Care Program’s last day being August 31, 2023.

Note 17 – Subsequent Events

On September 28, 2024, the Governor signed the Senate Bill 549: Gaming: Trial Nations Access to Justice Act (SB 549) into law. This law allows Indian tribes to bring legal action against California licensed card clubs and third- party proposition player services providers (TPPP) to seek a declaration as to whether controlled Las Vegas-style games operated by those card clubs and banked by TPPP violate state law. A court declaration in favor of the Indian tribe would stop almost all controlled games at local card clubs like the Huster Casino and the Lucky Lady Casino in Gardena. The potential adverse financial effect to the City is the loss of $9 million per fiscal year from the General Fund.

Management has evaluated subsequent events through December 10, 2024, which is the date the financial statements were available to be issued.

98 City of Gardena

Annual Comprehensive Financial Report
For the Year Ended June 30, 2024

(This page is intentionally left blank)
99 REQUIRED SUPPLEMENTARY

INFORMATION (UNAUDITED)
100

City of Gardena

Annual Comprehensive Financial Report
For the Year Ended June 30, 2024

(This page is intentionally left blank)
Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Taxes 67,906,603 $ 67,906,603 $ 71,026,695 $ 3,120,092 $ Licenses and permits 1,968,790 1,968,790 3,168,262 1,199,472 Intergovernmental 537,500 537,500 512,624 (24,876) Charges for services 5,461,996 5,461,996 5,718,391 256,395 Fines, forfeitures and penalties 1,220,924 1,220,924 795,650 (425,274) Use of money and property 355,000 355,000 1,986,496 1,631,496 Miscellaneous 502,286 502,286 399,558 (102,728) Total revenues 77,953,099 77,953,099 83,607,676 5,654,577 EXPENDITURES:

Current:

General government:

City clerk 606,383 606,383 548,659 57,724 City treasurer 348,947 81,956 95,646 (13,690) Executive office 1,864,266 1,864,266 1,372,875 491,391 Administrative services 3,089,421 3,356,682 3,021,390 335,292 Non-depratmental 2,149,043 3,949,043 3,504,917 444,126 Public safety:

Police 36,096,596 36,096,596 34,287,748 1,808,848 L.A. County Fire Department 13,493,514 13,493,514 13,689,106 (195,592) Public works 7,881,981 7,881,981 7,227,210 654,771 Recreation and human services 5,081,306 5,081,306 4,767,223 314,083 Community development 3,233,654 3,233,654 3,138,525 95,129 Capital outlay 1,105,607 1,105,607 918,404 187,203 Debt service:

Principal retirement - - 59,844 (59,844) Interest and fiscal charges -
- 21,450 (21,450)
Total expenditures 74,950,718 76,750,988 72,652,997 4,097,991

REVENUES OVER (UNDER)
EXPENDITURES 3,002,381 1,202,111 10,954,679 9,752,568

OTHER FINANCING
SOURCES (USES):

Transfers in 4,242,486 4,242,486 3,385,222 (857,264) Transfers out (5,260,128) (5,366,216) (4,866,568) 499,648 Proceed from sale of assets 10,000 10,000 5,053 (4,947) Total other financing sources (uses) (1,007,642) (1,113,730) (1,476,293) (362,563) NET CHANGE IN FUND BALANCE 1,994,739 88,381 9,478,386 9,390,005 FUND BALANCE:

Beginning of year 50,138,597
End of year 59,616,983 $
City of Gardena
Required Supplementary Information (Unaudited)
Budgetary Comparison Schedule - General Fund
For the Year Ended June 30, 2024
Budgeted Amounts
101
Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Intergovernmental - $ - $ 172,655$ 172,655 $ Charges for services - - 564,000 564,000 Fines, forfeitures and penalties 790,000 790,000 260,000 (530,000) Use of money and property 20,000 20,000 123,281 103,281 Miscellaneous 4,000,000 4,000,000 207,501 (3,792,499) Total revenues 4,810,000 4,810,000 1,327,437 (3,482,563) EXPENDITURES:

Current:

Community development 4,000,000 4,758,000 830,470 3,927,530 Capital outlay -
- 198,426 (198,426)
Total expenditures 4,000,000 4,758,000 1,028,896 3,729,104

REVENUES OVER (UNDER)
EXPENDITURES 810,000 52,000 298,541 246,541

OTHER FINANCING
SOURCES (USES):

Transfers out (4,656,000) (4,656,000) (1,042,233) 3,613,767 Total other financing sources (uses) (4,656,000) (4,656,000) (1,042,233) 3,613,767 NET CHANGE IN FUND BALANCE (3,846,000) (4,604,000) (743,692) 3,860,308 FUND BALANCE:

Beginning of year 6,715,432
End of year 5,971,740 $
City of Gardena
Required Supplementary Information (Unaudited)
Budgetary Comparison Schedule - Economic Development Grants Special Revenue Fund For the Year Ended June 30, 2024
Budgeted Amounts
102
City of Gardena
Required Supplementary Information (Unaudited)
Notes to the Budgetary Comparison Schedule
For the Year Ended June 30, 2024
103

Note 1 - Budgetary Control and Accounting Policy

The City adopts annual budgets for the Gene ral Fund, special revenue funds, and debt service funds as well as adopts project le ngth budgets for projects within the City Capital Projects Fund. During the year ended June 30, 2024, the City did not adopt a budge t for the Asset Forfeiture Special Revenue Fund.

The City’s budget is a detailed operating plan, which identifies estimated costs and results in re lation to estimated revenues. The budget includes (1) the programs, projects, services, and activitie s to be provided during the fiscal year, (2) the estimated r esources (inflows) and amounts available for appropriation and (3) the estimated charges to appropriations (outflows). The budget repres ents a process through which policy decisions are made, implemented, and controlled. The City’s policy prohibits expending funds for which there is no legal appropriation.

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

 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 Co uncil. The budget presented in the financial statements includes the original 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 C ity does not employ encumbra nce accounting. The budgets conform, in all material respects, to U.S. GAAP.
 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.

Measurement period 2013-14 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 - - - - - Change in assumptions - (2,344,195) - 8,715,907 (778,396) Difference 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)
1 - - - - (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 - beginning2
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
of the total pension liability 84.97% 82.27% 76.80% 75.13% 76.06% Covered payroll 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% 1 During Fiscal Year 2017-18, as a result of Governmental Accounting Standards Board Statement (GASB) No. 75, Accounting and Financial Reporting for Postemployment Benefit Plans Other than Pensions (GASB 75), CalPERS reported its proportionate share of activity related to postemployment benefits for participation in the State of California's agent OPEB plan. Accordingly, CalPERS recorded a one-time expense as a result of the adoption of GASB 75. Additionally, CalPERS employees participate in various State of California agent pension plans and during Fiscal Year 2017-18, CalPERS recorded a correction to previously reported financial statement to properly reflect its proportionate share of activity related to pensions in accordance with GASB Statement No. 68, Accounting and Financial Reporting for Pensions (GASB 68). 2 Includes one year's payroll growth using 2.80% payroll growth assumption for fiscal year ended June 20, 2022; 2.75% payroll growth assumption for fiscal years ended June 20, 2018-21; 3.00% payroll growth assumption for fiscal years ended June 30, 2014-17.

Notes to Schedule:

Benefit Changes: The figures above generally include any liability impact that may have resulted from voluntary benefit changes that occurred on or before the Management Date. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the Valuation Date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary.

City of Gardena
Schedule of Changes in Net Pension Liability and Related Ratios For the Year Ended June 30, 2024
Last Ten Fiscal Years
California Public Employees' Retirement System ("CalPERS") Miscellaneous Plan Required Supplementary Information (Unaudited)
104
Measurement period 2018-19 2019-20 2020-21 2021-22 2022-23 Total pension liability
Service cost 3,162,100 $ 3,329,543 $ 3,190,091 $ 3,211,338 $ 3,290,767 $ Interest 11,820,982 12,201,071 12,451,995 12,420,366 12,911,242 Changes of benefit terms - - - - 274,039 Change in assumptions - - - 5,350,605 - Difference between expected
and actual experience 3,672,690 (593,300) (1,841,509) (4,506,679) 1,931,594 Benefit payments, including refunds
of employee contributions (8,816,825)
(9,498,332) (10,721,565) (10,568,643) (10,957,147) Net change in total pension liability 9,838,947 5,438,982 3,079,012 5,906,987 7,450,495 Total pension liability - beginning 164,483,090 174,322,037 179,761,019 182,840,031 188,747,018 Total pension liability - ending (a) 174,322,037$ 179,761,019 $ 182,840,031 $ 188,747,018 $ 196,197,513 $ Pension fiduciary net position
Contributions - employer 3,688,807 $ 4,397,533 $ 46,940,155 $ 2,100,703 $ 1,934,460 $ Contributions - employee 1,457,546 1,611,737 1,203,298 1,242,880 1,594,067 Net investment income 8,130,102 6,417,192 35,069,162 (15,201,569) 11,006,934 Benefit payments, including refunds
of employee contributions (8,816,825) (9,498,332) (10,721,565) (10,568,643) (10,957,147) Net plan to plan resource movement - - - - (8,010) Administrative expense (89,280) (182,534) (132,085) (127,444) (133,856) Other miscellaneous income/(expense)
1 291 - - - - Net change in plan fiduciary net position 4,370,641 2,745,596 72,358,965 (22,554,073) 3,436,448 Plan fiduciary net position - beginning2
125,108,921 129,479,562 132,225,158 204,584,123 182,030,050 Plan fiduciary net position - ending (b) 129,479,562$ 132,225,158 $ 204,584,123 $ 182,030,050 $ 185,466,498 $ Plan net pension liability - ending (a)-(b) 44,842,475$ 47,535,861 $ (21,744,092) $ 6,716,968 $ 10,731,015 $ Plan fiduciary net position as a percentage
of the total pension liability 74.28% 73.56% 111.89% 96.44% 94.53% Covered payroll 20,102,352$ 21,343,226 $ 20,567,963 $ 18,319,096 $ 19,110,147 $ Plan net pension liability as a percentage
of covered payroll 223.07% 222.72% -105.72% 36.67% 56.15% California Public Employees' Retirement System ("CalPERS") Miscellaneous Plan City of Gardena
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios (Continued) For the Year Ended June 30, 2024
Last Ten Fiscal Years
105
Measurement period 2013-14 2014-15 2015-16 2016-17 2017-18 City's Proportion of the Net
Pension Liability/(Asset) 0.65549% 0.65832% 0.62924% 0.61206% 0.62701% City's Proportionate share
of the Net Pension Liability/(Asset) 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/(Asset) 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% 2018-19 2019-20 2020-21 2021-22 2022-23
City's Proportion of the Net
Pension Liability/(Asset) 0.55899% 0.56472% -0.50839% 0.10940% 0.25257% City's Proportionate share
of the Net Pension Liability/(Asset) 57,280,320 $ 61,443,923 $ (27,495,287) $ 12,636,888 $ 18,879,716 $ City's Covered payroll 12,156,428 $ 11,992,232 $ 11,768,395 $ 12,233,930 $ 13,043,131 $ City's Proportionate Share of the Net
Pension Liability/(Asset) as a
Percentage of its covered payroll 471.19% 512.36% -233.64% 103.29% 144.75% Plan's Proportionate Share of the
Fiduciary Net Position as a
Percentage of the Total Pension Liability 72.58% 72.05% 111.98% 94.86% 74.87% California Public Employees' Retirement System ("CalPERS") Safety Plan City of Gardena
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios For the Year Ended June 30, 2024
Last Ten Fiscal Years
106
2013-14 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 contributions 1
(1,628,415)$ (2,016,919) $ (2,317,060) $ (2,645,234) $ (3,015,630) $ Contribution deficiency (excess) - $ - $ - $ - $ - $ Covered payroll 2 17,651,457$ 18,094,788 $ 19,012,911 $ 19,306,012 $ 19,929,430 $ Contributions as a percentage of
covered employee payroll 9.23% 11.15% 12.19% 13.70% 15.13% 2018-19 2019-20 2020-21 3 2021-22 2022-23
Actuarially determined contribution 3,688,807$ 4,397,533 $ 4,625,188 $ 2,100,703 $ 1,934,460 $ Contributions in relation to the
actuarially determined contributions 1
(3,688,807)$ (4,397,533) $ (46,910,155) $ (2,100,703) $ (1,934,460) $ Contribution deficiency (excess) - $ - $ (42,284,967)$ - $ - $ Covered payroll 2 20,102,352$ 21,343,226 $ 20,567,963 $ 18,319,096 $ 19,110,147 $ Contributions as a percentage of
covered employee payroll 18.35% 20.60% 228.07% 11.47% 10.12% 1 Employers are assumed to make contributions equal to the actuarially determined contributions However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions.
2 Includes one year's payroll growth using 2.8% payroll growth assumption for fiscal year ended June 30, 2022; 2.75% payroll growth assumptions for fiscal year ended June 30, 2018-21; 3.00% payroll growth assumption for fiscal years ended June 30, 2014-17. 3 During FY2020-21, the City contributed $42,022,534 additional funds to CalPERS via proceeds of the 2020 Taxable Pension Obligation Bonds.

Notes to Schedule:

The actuarial methods and assumptions used to set the actuarially determined for Fiscal Year 2021-22 were derived from the June 30, 2019 funding valuation report.

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 Varies by entry age and service
Payroll Growth 2.750%
Investment rate of return 7.00% net of pension plan investment and administrative expenses; includes Inflation.

Retirement age The probabilities of retirement are based on the 2017 CalPERS Experience study for the period from 1997 to 2015
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.

California Public Employees' Retirement System ("CalPERS") Miscellaneous Plan City of Gardena
Required Supplementary Information (Unaudited)
Schedule of City's Contributions - Pensions
For the Year Ended June 30, 2024
Last Ten Fiscal Years
107
2014-15 2015-16 2016-17 2017-18 2018-19 2
Actuarially determined contribution 4,265,350$ 4,917,350 $ 5,401,275 $ 6,093,811 $ 6,617,559 $ Contributions in relation to the
actuarially determined contributions (4,265,350)$ (4,917,350) $ (5,401,275) $ (6,093,811) $ (12,677,559) $ Contribution deficiency (excess) - $ - $ - $ - $ (6,060,000)$ Covered payroll 1 9,351,143$ 10,491,839 $ 10,435,515 $ 11,232,919 $ 12,156,428 $ Contributions as a percentage of
covered employee payroll 45.61% 46.87% 51.76% 54.25% 104.29% 2019-20 2020-21 3 2021-22 2022-23 2023-24
Actuarially determined contribution 6,185,808$ 8,595,603 $ 2,950,604 $ 3,126,759 $ 2,994,848 $ Contributions in relation to the
actuarially determined contributions (6,185,808)$ (60,369,859) $ (2,950,604) $ (3,126,759) $ (2,994,848) $ Contribution deficiency (excess) - $ (51,774,256)$ - $ - $ - $ Covered payroll 1 21,343,226$ 11,768,395 $ 12,233,930 $ 12,576,480 $ 14,136,619 $ Contributions as a percentage of
covered employee payroll 28.98% 512.98% 24.12% 24.86% 21.19% 1 Payroll form 2021-22 was assumed to increase by the 2.8% payroll growth assumptions. 2 During FY 2018-19, the City contributed $6,060,000 to CalPERS to proceed with the 20 year fresh start of the unfunded liability to the safety plan.
3 During FY2020-21, the City contributed $51,774,256 additional funds to CalPERS via proceeds of the 2020 Taxable Pension Obligation Bonds.

Notes to Schedule:

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

Changes of Assumptions: Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long-term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumption s
The accounting discount rate was 7.15% for measurement dates 2017 through 2021, 7.65% for measurement dates 2015 through 2016, and 7.50%for measurement date 2014. 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% to 7.15%. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5% (net of administrative expense) to 7.65% (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5% discount rate.

California Public Employees' Retirement System ("CalPERS") Safety Plan City of Gardena
Required Supplementary Information (Unaudited)
Schedule of City's Contributions - Pensions
For the Year Ended June 30, 2024
Last Ten Fiscal Years
108
For the Measurement Period: 2016-17 1
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 in benefit terms - - - - - Changes in assumptions (7,755,000) (4,569,074) 3,665,059 10,099,593 654,965 Actual and expected experience difference - 2,253,827 - (2,109,370) - Benefit payments (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 65,056,000 59,608,000 58,518,198 63,866,434 73,949,668 Total OPEB liability - ending (a) 59,608,000$ 58,518,198 $ 63,866,434 $ 73,949,668 $ 76,481,166 $ Plan Fiduciary Net Position
Contribution - employer - $ 2,247,465$ 2,401,080 $ 2,075,527 $ 2,237,985 $ Contribution - 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 - - - 151,791 157,078 Plan fiduciary net position - ending (b) - - 151,791 157,078 200,187 Net OPEB liability (asset) - ending (a)-(b) 59,608,000$ 58,518,198 $ 63,714,643 $ 73,792,590 $ 76,280,979 $ Fiduciary net position as a % of
total OPEB liability 0.00% 0.00% 0.24% 0.21% 0.26%
Covered payroll 25,500,000 23,523,270 24,650,894 25,558,730 22,948,265 Net OPEB liability as a
percentage of payroll 233.76% 248.77% 258.47% 288.72% 332.40% 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.

Notes to Schedule:

Changes of assumptions: In 2022, the accounting discount rate increase from 2.16% to 3.54%. In addition, the demographic assumptions and the inflation rate assumption were changed in accordance with the 2002-2016 CalPERS Experience Study and Review of Actuarial Assumptions. In 2021, the accounting discount rate decreased from 2.21% to 2.16%. In 2020, the accounting discount rate decreased from 3.58% to 3.87%. In 2017, the accounting discount rate incareased from 2.85% to 3.58%.

Changes of benefit terms: There were no changes of benefitterms in 2022.

Governmental Activities Retiree Healthcare Plan
City of Gardena
Schedule of Changes in the Net OPEB Liability and Related Ratios For the Year Ended June 30, 2024
Required Supplementary Information (Unaudited)
Last Ten Fiscal Years
109
For the Measurement Period: 2021-22 2022-23
Total OPEB Liability
Service cost 2,815,579 $ 2,096,595 $
Transfers to Sewer - -
Interest 1,688,245 2,325,252
Changes in benefit terms - -
Changes in assumptions (14,060,251) (980,157)
Actual and expected experience difference 303,548 - Benefit payments (2,286,676) (2,729,974)
Other - funding rates used by benefits paid - - Net change in total OPEB liability (11,539,555) 711,716 Total OPEB liability - beginning 76,481,166 64,941,611 Total OPEB liability - ending (a) 64,941,611$ 65,653,327 $ Plan Fiduciary Net Position
Contribution - employer 2,286,676 $ 4,479,974 $
Contribution - employee - -
Net investment income (26,789) 11,129
Benefit payments, including refunds (2,286,676) (2,729,974) Administrative expense (51) (50)
Other changes - -
Net change in plan fiduciary net position (26,840) 1,761,079 Plan fiduciary net position - beginning 200,187 173,347 Plan fiduciary net position - ending (b) 173,347 1,934,426 $ Net OPEB liability (asset) - ending (a)-(b) 64,768,264$ 63,718,901 $ Fiduciary net position as a % of
total OPEB liability 0.27% 2.95%
Covered payroll 24,154,486 25,140,436
Net OPEB liability as a
percentage of payroll 268.14% 253.45%
Governmental Activities Retiree Healthcare Plan
City of Gardena
Required Supplementary Information (Unaudited)
Schedule of Changes in the Net OPEB Liability and Related Ratios (Continued) For the Year Ended June 30, 2024
Last Ten Fiscal Years
110
For the Measurement Period: 2016-17 1
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 in benefit terms - - - - - Changes in assumptions - (357,602) - 117,261 - Actual and expected experience difference - 301,185 - (294,459) - Benefit payments (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 8,774,000 9,332,000 9,649,186 10,311,986 10,865,356 Total OPEB liability - ending (a) 9,332,000 $ 9,649,186 $ 10,311,986 $ 10,865,356 $ 11,625,436 $ Plan Fiduciary Net Position
Contribution - employer 462,000 $ 4,516,245 $ 289,528 $ 276,271 $ 272,358 $ Contribution - 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 - - 4,081,157 4,332,030 4,482,902 Plan fiduciary net position - ending (b) - 4,081,157 4,332,030 4,482,902 5,713,012 Net OPEB liability (asset) - ending (a)-(b) 9,332,000$ 5,568,029 $ 5,979,956 $ 6,382,454 $ 5,912,424 $ Fiduciary net position as a % of
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 Net OPEB liability as a
percentage of payroll 95.62% 53.97% 61.03% 59.03% 67.25% 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.

Notes to Schedule:

Changes of assumptions: In 2022, there were no changes in discount rate; however, the demographic assumptions and the inflation rate assumptions were changed in accordance with the 2002-2019 CalPERS Experience Study and Review of Actuarial Assumptions.

In 2020, the discount rate change from 6.75% to 6.25% and the inflation assumption was changed from 2.75% per year to 2.50%.

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.

Changes of benefit terms: There were no changes of benefit terms in 2022.

City of Gardena
Required Supplementary Information (Unaudited)
Schedule of Changes in the Net OPEB Liability and Related Ratios For the Year Ended June 30, 2024
Last Ten Fiscal Years
GTrans Retiree Healthcare Plan
111
For the Measurement Period: 2021-22 2022-23
Total OPEB Liability
Service cost 300,182 $ 315,938 $
Interest 718,462 794,147
Changes in benefit terms (873,696) -
Changes in assumptions (475,092) -
Actual and expected experience difference 1,378,033 - Benefit payments - (574,545)
Other - funding rates used by benefits paid - - Net change in total OPEB liability 1,047,889 535,540 Total OPEB liability - beginning 11,625,436 12,673,325 Total OPEB liability - ending (a) 12,673,325$ 13,208,865 $ Plan Fiduciary Net Position
Contribution - employer 873,696 $ 574,545 $
Contribution - employee - -
Net investment income 357,018 317,552
Benefit payments, including refunds (873,696) (574,545) Administrative expense (1,447) (1,437)
Other changes (1,121,430) -
Net change in plan fiduciary net position (765,859) 316,115 Plan fiduciary net position - beginning 5,713,012 4,947,153 Plan fiduciary net position - ending (b) 4,947,153 5,263,268 $ Net OPEB liability (asset) - ending (a)-(b) 7,726,172$ 7,945,597 $ Fiduciary net position as a % of
total OPEB liability 39.04% 39.85%
Covered payroll 10,652,412 9,500,663
Net OPEB liability as a
percentage of payroll 72.53% 83.63%
City of Gardena
Required Supplementary Information (Unaudited)
Schedule of Changes in the Net OPEB Liability and Related Ratios (Continued) For the Year Ended June 30, 2024
Last Ten Fiscal Years
GTrans Retiree Healthcare Plan
112
For the Measurement Period: 2016-17 1
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 in benefit terms - - - - - Changes in assumptions - (32,020) 17,238 64,526 5,084 Actual and expected experience difference - (709) - 16,025 - Benefit payments - - - - - 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 - - 282,155 330,691 445,792 Total OPEB liability - ending (a) - $ 282,155$ 330,691 $ 445,792 $ 536,098 $ Plan Fiduciary Net Position
Contribution - employer - $ - $ - $ - $ - $ Contribution - employee - - - - - Net investment income - - - - - Benefit payments, including refunds - - - - - Administrative expense - - - - - Other changes - - - - - Net change in plan fiduciary net position - - - - - Plan fiduciary net position - beginning - - - - - Plan fiduciary net position - ending (b) - - - - - Net OPEB liability (asset) - ending (a)-(b) - $ 282,155$ 330,691 $ 445,792 $ 536,098 $ Fiduciary net position as a % of
total OPEB liability 0.00% 0.00% 0.00% 0.00% 0.00%
Covered payroll N/A 388,821 482,665 515,111 497,972 Net OPEB liability as a
percentage of payroll N/A 72.57% 68.51% 86.54% 107.66%
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.

Notes to Schedule:

Changes of assumptions: In 2022, the accounting discount rate increase from 2.16% to3.54%. In 2020, the accounting discount rate decreased from 2.21% to 2.16%. In 2020, the accounting discount rate decreased from 3.50% to 2.21%. In 2019, the accounting discount rate increased from 3.87% to 3.50%. In 2018, the accounting discount rate increased from 3.58% to 3.87%.

In 2017, the accounting discount rate increased from 2.85% to 3.58%.

Changes of benefit terms: There were no changes of benefit terms in 2022.

City of Gardena
Required Supplementary Information (Unaudited)
Schedule of Changes in the Net OPEB Liability and Related Ratios For the Year Ended June 30, 2024
Last Ten Fiscal Years
Sewer Retiree Healthcare Plan
113
For the Measurement Period: 2021-22 2022-23
Total OPEB Liability
Service cost 32,554 $ 26,422 $
Transfers from the Governmental Activities - - Interest 12,283 11,207
Changes in benefit terms - -
Changes in assumptions (71,603) (5,457)
Actual and expected experience difference (214,606) - Benefit payments - (9,211)
Other - funding rates used by benefits paid - - Net change in total OPEB liability (241,372) 22,961 Total OPEB liability - beginning 536,098 294,726 Total OPEB liability - ending (a) 294,726 $ 317,687 $ Plan Fiduciary Net Position
Contribution - employer - $ - $
Contribution - employee - -
Net investment income - -
Benefit payments, including refunds - - Administrative expense - -
Other changes - -
Net change in plan fiduciary net position - - Plan fiduciary net position - beginning - - Plan fiduciary net position - ending (b) - - $ Net OPEB liability (asset) - ending (a)-(b) 294,726$ 317,687 $ Fiduciary net position as a % of
total OPEB liability 0.00% 0.00%
Covered payroll 386,209 599,215
Net OPEB liability as a
percentage of payroll 76.31% 53.02%
City of Gardena
Required Supplementary Information (Unaudited)
Schedule of Changes in the Net OPEB Liability and Related Ratios (Continued) For the Year Ended June 30, 2024
Last Ten Fiscal Years
Sewer Retiree Healthcare Plan
114
For the Measurement Period: 2016-17 1
2017-18 2018-19 2019-20 2020-21
Actuarially determined contributions 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%
For the Measurement Period: 2021-22 2022-23 2023-24
Actuarially determined contributions 4,211,000$ 5,012,263 $ 5,150,100 $ Contributions in relation to the
actuarially determined contribution (2,286,676) (4,966,034) (4,479,974) Contribution deficiency (excess) 1,924,324$ 46,229 $ 670,126 $ Covered payroll 24,154,486 $ 24,818,734 $ 25,140,436 $ Contributions as a percentage
of covered payroll 9.47% 20.01% 17.82%
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.

Notes to Schedule:

The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2022-23 were derived from the June 30, 2022 funding valuation report.

Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry Age Normal, Level % of pay
Discount rate: Level % of pay
Long-term expected return 6.25%
Municipal bond index 3.54%
GASB 75 3.54%
Salary increases 2.75%
Withdrawal Miscellaneous and Safety - Terminated Refund and Terminated Vested Rates for Public Agency Miscellaneous and Police from CalPERS Experience Study (2000-2019).

Pre-retirement mortality Miscellaneous and Safety - Preretirement Mortality Rates for Public Agency Miscellaneous and Police and Fire from CalPERS Experience Study (2000-2019).

Postretirement mortality Miscellaneous and Safety - Postretirement Mortality Rates for Public Agency Miscellaneous and Police and Fire from CalPERS Experience Study (2000-2019).

Retirement Miscellaneous - Classic - Service Retirement Rates for Public Agency Miscellaneous -2.00% at 55-from CalPERS Experience Study (2000-2019).

Miscellaneous - PEPRA - Service Retirement Rates for Public Agency Miscellaneous -2.00% at 62-from CalPERS Experience Study (2000-2019).

Police - Classic - Service Retirement Rates for Public Agency Police-3.00% at 50-CalPERS Experience Study (2000-2019).

Police - PEPRA - Service Retirement Rates for Public Agency Police-2.70% at 57-CalPERS Experience Study (2000-2019).

Medical trend Pre-Medicare-6.5% for 2022, decreasing on an ultimate rate of 4.00% in 2070+. Medicare City Plan-6.0% for 2022, decreasing on an ultimate rate of 4.00% in 2070+. Medicare Kaiser-4.5% for 2022, decreasing on an ultimate rate of 4.00% in 2070+.

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, 2024
Last Ten Fiscal Years
115
For the Measurement Period: 2016-17 1
2017-18 2018-19 2019-20 2020-21
Actuarially determined contributions 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%
For the Measurement Period: 2021-22 2022-23 2023-24
Actuarially determined contributions 899,000$ 954,864 $ 981,123 $ Contributions in relation to the
actuarially determined contribution (873,696) (724,778) (574,545) Contribution deficiency (excess) 25,304 $ 230,086 $ 406,578 $ Covered payroll 10,484,293 $ 10,954,086 $ 9,500,663 $ Contributions as a percentage
of covered payroll 8.33% 6.62% 6.05%
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.

Notes to Schedule:

The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2022-23 were derived from the June 30, 2022 funding valuation report.

Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry Age Normal, Level % of pay
Discount rate: Level % of pay
Long-term expected return 6.25%
Municipal bond index 3.54%
GASB 75 6.25%
Salary increases 2.75%
Withdrawal Miscellaneous - Terminated Refund and Terminated Vested Rates for Public Agency Miscellaneous from CalPERS Experience Study (2000-2019).

Pre-retirement mortality Miscellaneous - Preretirement Mortality Rates for Public Agency Miscellaneous from CalPERS Experience Study (2000-2019).

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

Retirement Miscellaneous - Classic - Service Retirement Rates for Public Agency Miscellaneous -2.00% at 55-from CalPERS Experience Study (2000-2019).

Miscellaneous - PEPRA - Service Retirement Rates for Public Agency Miscellaneous -2.00% at 62-from CalPERS Experience Study (2000-2019).

Medical trend Pre-Medicare-6.5% for 2022, decreasing on an ultimate rate of 4.00% in 2070+. Medicare City Plan-6.0% for 2022, decreasing on an ultimate rate of 4.00% in 2070+. Medicare Kaiser-4.5% for 2022, decreasing on an ultimate rate of 4.00% in 2070+.

GTrans Retiree Healthcare Plan
City of Gardena
Required Supplementary Information (Unaudited)
Schedule of Contributions - Other Postemployment Benefits Plans For the Year Ended June 30, 2024
Last Ten Fiscal Years
116
For the Measurement Period: 2016-17 1
2017-18 2018-19 2019-20 2020-21
Actuarially determined contributions - $ - $ 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%
For the Measurement Period: 2021-22 2022-23 2023-24
Actuarially determined contributions 48,000$ 32,004 $ 74,388 $ Contributions in relation to the
actuarially determined contribution - (10,147) - Contribution deficiency (excess) 48,000 $ 21,857 $ 74,388 $ Covered payroll 386,578 $ 397,209 $ 599,215 $ Contributions as a percentage
of covered payroll 0.00% 2.55% 0.00%
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.

Notes to Schedule:

The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2022-23 were derived from the June 30, 2022 funding valuation report.

Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry Age Normal, Level % of pay
Discount rate: Level % of pay
Long-term expected return 6.25%
Municipal bond index 3.54%
GASB 75 3.54%
Salary increases 2.75%
Withdrawal Miscellaneous and Safety - Terminated Refund and Terminated Vested Rates for Public Agency Miscellaneous and Police from CalPERS Experience Study (2000-2019).

Pre-retirement mortality Miscellaneous and Safety - Preretirement Mortality Rates for Public Agency Miscellaneous and Police and Fire from CalPERS Experience Study (2000-2019).

Postretirement mortality Miscellaneous and Safety - Postretirement Mortality Rates for Public Agency Miscellaneous and Police and Fire from CalPERS Experience Study (2000-2019).

Retirement Miscellaneous - Classic - Service Retirement Rates for Public Agency Miscellaneous -2.00% at 55-from CalPERS Experience Study (2000-2019).

Miscellaneous - PEPRA - Service Retirement Rates for Public Agency Miscellaneous -2.00% at 62-from CalPERS Experience Study (2000-2019).

Police - Classic - Service Retirement Rates for Public Agency Police-3.00% at 50-CalPERS Experience Study (2000-2019).

Police - PEPRA - Service Retirement Rates for Public Agency Police-2.70% at 57-CalPERS Experience Study (2000-2019).

Medical trend Pre-Medicare-6.5% for 2022, decreasing on an ultimate rate of 4.00% in 2070+. Medicare City Plan-6.0% for 2022, decreasing on an ultimate rate of 4.00% in 2070+. Medicare Kaiser-4.5% for 2022, decreasing on an ultimate rate of 4.00% in 2070+.

Sewer Retiree Healthcare Plan
City of Gardena
Required Supplementary Information (Unaudited)
Schedule of Contributions - Other Postemployment Benefits Plans For the Year Ended June 30, 2024
Last Ten Fiscal Years
117
118

City of Gardena

Annual Comprehensive Financial Report
For the Year Ended June 30, 2024

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119

SUPPLEMENTARY INFORMATION
Original Final Actual Variance with
Budget Budget Amounts Final Budget
EXPENDITURES:

Capital outlay 50,894,884 $ 51,230,972 $ 11,576,988 $ (39,653,984) $ Total expenditures 50,894,884 51,230,972 11,576,988 (39,653,984)

OTHER FINANCING
SOURCES (USES):

Transfers in 50,894,884 51,230,972 11,576,985 (39,653,987) Total other financing sources (uses) 50,894,884 51,230,972 11,576,985 (39,653,987) NET CHANGE IN FUND BALANCE -$ - $ (3) (3) $ FUND BALANCE:

Beginning of year 301,897
End of year 301,894 $
City of Gardena
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual City Capital Projects Fund
For the Year Ended June 30, 2024
120
121

City of Gardena

Annual Comprehensive Financial Report
For the Year Ended June 30, 2024

(This page is intentionally left blank)
122

City of Gardena

Annual Comprehensive Financial Report
For the Year Ended June 30, 2024

(This page is intentionally left blank)
123

NONMAJOR

GOVERNMENTAL FUNDS

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 An geles County 1/2% sales tax, received from MTA and expended on streets and roads heavily used by public transit.

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.

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.

Public Safety Grants Special Revenue Fund - Represents twenty-two funds used to fund various police activities. Four of the grants receive funding from the California Office of Tra ffic Safety. These grants fund sobriety chec kpoints, saturation patrols, seatb elt enforcement, warrant/probation sweeps and additional activities to raise public awareness and reduce alcohol involved fatalities. Two grants from the U.S. Department of Justice provides funding for technological programs and equipment to improve public safety issues. One grant from Board of State and Community Corrections (“BSCC”) for establis hing officer wellness units and support.

Finally, The COPS grant and Traffic Safety grant are funds earma rked 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.

Public Works Grants Special Revenue Fund - Represents fourteenth funds used to implement various capital improvements projects. The Artesia Boulevard Landscaping Assessment is receive d from property assessments and restricted to funding district landscaping activities. Several funds to accou nt for various grants received from the California Department of Transportation o r Caltrans to implement programs that promot e pedestrian friendly areas, street and si gnal improvements. 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 & Measure M funds are derived from Los Angeles County 1/2 cent sales tax approved by voters 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 vot ers in November 2018 to increase local water su pply, improve water quality, and protect public health. This fund is use for Municipal Separate Storm Sewer System (“MS4”) programs and projects. Proposition 68 Fund to account for grant monies received from the Statewide Park Development and Community Revitalization Program (“SPP”) to create new parks and recreation opportunities in underserved communities.

Human Services Grants Special Revenue Fund - Represents seven 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 C are grants are funded by the California Department of Education Social Services (“CDSS”) and provides daycare and early education t o qualified families. Once fund to account for the Los Angeles County Measure H Homeless grant to provide homeless prevention and

referral services.

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 yo uth 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.

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.

Consolidated Prop C Public
Lighting Local Gas Asset Safety
District Return Tax Forfeiture Grants
Cash and investments 737,796 $ 2,974,338$ 4,532,258 $ 770,419 $ 259,648 $ Receivables:

Accounts - - 172,516 - 327,203 Taxes 19,040 103,565 268,980 - - Prepaid items and deposits - - 4,812 - - Due from other governments -
- - - 28,736 Total assets 756,836$ 3,077,903$ 4,978,566 $ 770,419 $ 615,587 $ Liabilities:

Accounts payable 55,289 $ - $ 57,588$ - $ 8,357$ Accrued liabilities - - 20,711 - 331 Salaries and benefits payable - 757 2,229 - 3,732 Due to other governments - - - - - Unearned revenue - - - - - Total liabilities 55,289 757 80,528 - 12,420 Deferred inflows of resources:

Unavailable revenue - - - - 327,203 Total deferred inflows of resources - - - - 327,203 Fund Balances:

Nonspendable - - 4,812 - - Restricted 701,547 3,077,146 4,893,226 770,419 275,964 Total fund balances 701,547 3,077,146 4,898,038 770,419 275,964 Total liabilities, deferred inflows
and fund balances 756,836$ 3,077,903$ 4,978,566 $ 770,419 $ 615,587 $ Special Revenue Funds
City of Gardena
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2024
ASSETS

AND FUND BALANCES

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,
124
Community Total
Public Human Development American Nonmajor
Works Services Block Grant Rescue Governmental
Grants Grants (CDBG) Plan Funds
Cash and investments 1,133,391 $ 990,472 $ 133,995 $ 1,547,465 $ 13,079,782 $ Receivables:

Accounts - 64,963 3,291 - 567,973 Taxes 166,223 - - - 557,808 Prepaid items and deposits - 1,263 - - 6,075 Due from other governments 4,633,677
61,228 26,525 - 4,750,166 Total assets 5,933,291$ 1,117,926 $ 163,811 $ 1,547,465 $ 18,961,804 $ Liabilities:

Accounts payable 51,732 $ 50,091 $ 33,018 $ - $ 256,075$ Accrued liabilities - - - - 21,042 Salaries and benefits payable 1,392 8,169 2,688 - 18,967 Due to other governments - 1,027,656 - - 1,027,656 Unearned revenue - - 22,597 1,547,465 1,570,062 Total liabilities 53,124 1,085,916 58,303 1,547,465 2,893,802 Deferred inflows of resources:

Unavailable revenue 485,611 - - - 812,814 Total deferred inflows of resources 485,611 - - - 812,814 Fund Balances:

Nonspendable - 1,263 - - 6,075 Restricted 5,394,556 30,747 105,508 - 15,249,113 Total fund balances (deficits) 5,394,556 32,010 105,508 - 15,255,188 Total liabilities, deferred inflows
and fund balances 5,933,291$ 1,117,926 $ 163,811 $ 1,547,465 $ 18,961,804 $ City of Gardena
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2024
Special Revenue Funds
ASSETS

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,

AND FUND BALANCES
125
Consolidated Prop C Public
Lighting Local Gas Asset Safety
District Return Tax Forfeiture Grants
REVENUES:

Taxes 865,581 $ 1,318,518$ - $ - $ - $ Intergovernmental - - 3,288,737 - 350,809 Fines, forfeitures, and penalities - - - - 22,646 Use of money and property 14,610 87,735 116,969 18,158 16,376 Miscellaneous - - 14,440 - - Total revenues 880,191 1,406,253 3,420,146 18,158 389,831 EXPENDITURES:

Current:

General government - - 1,127 - - Public safety - - - - 286,273 Public works 761,548 41,300 603,982 - - Recreation and human services - - - - - Community deveopment - - - - - Capital outlay - - - - 8,357 Debt service:

Principal retirement 13,177 - 59 - - Interest and fiscal charges - - - - - Total expenditures 774,725 41,300 605,168 - 294,630

REVENUES OVER
(UNDER) EXPENDITURES 105,466 1,364,953 2,814,978 18,158 95,201

OTHER FINANCING
SOURCES (USES):

Transfers in - - - - 314,243 Transfers out (100,869) (2,268,936) (3,184,493) - (75,500) Proceeds from the sale of assets - - - - - Total other financing
sources (uses) (100,869)
(2,268,936) (3,184,493) - 238,743 NET CHANGE IN FUND BALANCE 4,597 (903,983) (369,515) 18,158 333,944 Fund balances (deficits), beginning of year 696,950 3,981,129 5,267,553 752,261 (57,980) Fund balances, end of year 701,547 $ 3,077,146$ 4,898,038 $ 770,419 $ 275,964 $ Special Revenue Funds
City of Gardena
Nonmajor Governmental Funds
For the Year Ended June 30, 2024
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 126
Community Total
Public Human Development American Nonmajor
Works Services Block Grant Rescue Governmental
Grants Grants (CDBG) Plan Funds
REVENUES:

Taxes 2,186,871 $ - $ - $ - $ 4,370,970$ Intergovernmental 5,535,276 1,847,030 159,595 1,505,721 12,687,168 Fines, forfeitures, and penalities - - - - 22,646 Use of money and property 128,799 29,445 3,846 61,101 477,039 Miscellaneous - 52,592 - - 67,032 Total revenues 7,850,946 1,929,067 163,441 1,566,822 17,624,855 EXPENDITURES:

Current:

General government - - - - 1,127 Public safety - - - - 286,273 Public works 453,334 - - - 1,860,164 Recreation and human services 59,307 2,526,813 - - 2,586,120 Community deveopment - - 221,335 - 221,335 Capital outlay 17,937 - - - 26,294 Debt service:

Principal retirement 4,489 4,193 - - 21,918 Interest and fiscal charges 28,826 - - - 28,826 Total expenditures 563,893 2,531,006 221,335 - 5,032,057

REVENUES OVER
(UNDER) EXPENDITURES 7,287,053 (601,939) (57,894) 1,566,822 12,592,798

OTHER FINANCING
SOURCES (USES):

Transfers in - 229,572 - - 543,815 Transfers out (6,297,421) - (131) (1,566,822) (13,494,172) Proceeds from the sale of assets 12,495 - - - 12,495 Total other financing
sources (uses) (6,284,926)
229,572 (131) (1,566,822) (12,937,862) NET CHANGE IN FUND BALANCE 1,002,127 (372,367) (58,025) - (345,064) Fund balances (deficits), beginning of year 4,392,429 404,377 163,533 - 15,600,252 Fund balances, end of year 5,394,556 $ 32,010 $ 105,508 $ - $ 15,255,188$ Special Revenue Funds
City of Gardena
Nonmajor Governmental Funds
For the Year Ended June 30, 2024
Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) 127
Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Taxes 885,031 $ 885,031 $ 865,581 $ (19,450) $ Use of money and property 2,500 2,500 14,610 12,110 Total revenues 887,531 887,531 880,191 (7,340) EXPENDITURES:

Current:

Public works 820,769 820,769 761,548 59,221 Debt service:

Principal retirement 14,296
14,296 13,177 1,119
Total expenditures 835,065 835,065 774,725 60,340

REVENUES OVER (UNDER)
EXPENDITURES 52,466 52,466 105,466 53,000

OTHER FINANCING
SOURCES (USES):

Transfers out (298,000) (298,000) (100,869) 197,131 Total other financing sources (uses) (298,000) (298,000) (100,869) 197,131 NET CHANGE IN FUND BALANCE (245,534)$ (245,534) $ 4,597 250,131$ FUND BALANCE:

Beginning of year 696,950
End of year 701,547 $
City of Gardena
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget to Actual Consolidated Lighting District Special Revenue Fund
For the Year Ended June 30, 2024
Budgeted Amounts
128
Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Taxes 1,437,090 $ 1,437,090 $ 1,318,518 $ (118,572) $ Use of money and property 20,000 20,000 87,735 67,735 Total revenues 1,457,090 1,457,090 1,406,253 (50,837) EXPENDITURES:

Current:

Public works 41,228 41,228 41,300 (72) Total expenditures 41,228 41,228 41,300 (72)

REVENUES OVER (UNDER)
EXPENDITURES 1,415,862 1,415,862 1,364,953 (50,909)

OTHER FINANCING
SOURCES (USES):

Transfers out (4,240,117) (4,240,117) (2,268,936) 1,971,181 Total other financing sources (uses) (4,240,117) (4,240,117) (2,268,936) 1,971,181 NET CHANGE IN FUND BALANCE (2,824,255)$ (2,824,255) $ (903,983) 1,920,272 $ FUND BALANCE:

Beginning of year 3,981,129
End of year 3,077,146 $
City of Gardena
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget to Actual Prop C Local Return Special Revenue Fund
For the Year Ended June 30, 2024
Budgeted Amounts
129
Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Intergovernmental 3,318,681 $ 3,318,681 $ 3,288,737 $ (29,944) $ Use of money and property 27,500 27,500 116,969 89,469 Miscellanous - - 14,440 14,440 Total revenues 3,346,181 3,346,181 3,420,146 73,965 EXPENDITURES:

Current:

General government 16,297 16,297 1,127 15,170 Public works 574,300 574,300 603,982 (29,682) Debt service:

Principal retirement -
- 59 (59)
Total expenditures 590,597 590,597 605,168 (14,571)

REVENUES OVER (UNDER)
EXPENDITURES 2,755,584 2,755,584 2,814,978 59,394

OTHER FINANCING
SOURCES (USES):

Transfers out (7,229,000) (7,339,000) (3,184,493) 4,154,507 Total other financing sources (uses) (7,229,000) (7,339,000) (3,184,493) 4,154,507 NET CHANGE IN FUND BALANCE (4,473,416)$ (4,583,416) $ (369,515) 4,213,901 $ FUND BALANCE:

Beginning of year 5,267,553
End of year 4,898,038 $
City of Gardena
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget to Actual Gas Tax Special Revenue Fund
For the Year Ended June 30, 2024
Budgeted Amounts
130
Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Use of money and property - $ - $ 18,158$ 18,158 $ Total revenues - - 18,158 18,158 EXPENDITURES:

Current:

Public safety 150,000 150,000 - 150,000 Total expenditures 150,000 150,000 - 150,000 NET CHANGE IN FUND BALANCE (150,000)$ (150,000) $ 18,158 168,158 $ FUND BALANCE:

Beginning of year 752,261
End of year 770,419 $
City of Gardena
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget to Actual Asset Forfeiture Special Revenue Fund
For the Year Ended June 30, 2024
Budgeted Amounts
131
Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Intergovernmental 276,126 $ 276,126 $ 350,809 $ 74,683 $ Fines, forfeitures, and penalities 75,000 75,000 22,646 (52,354) Use of money and property 500 500 16,376 15,876 Total revenues 351,626 351,626 389,831 38,205 EXPENDITURES:

Current:

Public safety 276,126 276,126 286,273 (10,147) Capital outlay -
- 8,357 (8,357)
Total expenditures 276,126 276,126 294,630 (18,504)

REVENUES OVER (UNDER)
EXPENDITURES 75,500 75,500 95,201 19,701

OTHER FINANCING
SOURCES (USES):

Transfers in - - 314,243 314,243 Transfers out (75,000) (75,000) (75,500) (500) Total other financing sources (uses) (75,000) (75,000) 238,743 313,743 NET CHANGE IN FUND BALANCE 500$ 500 $ 333,944 333,444 $ FUND BALANCE (DEFICIT):

Beginning of year (57,980)
End of year 275,964 $
City of Gardena
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget to Actual Public Safety Grants Special Revenue Fund
For the Year Ended June 30, 2024
Budgeted Amounts
132
Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Taxes 2,401,007 $ 2,401,007 $ 2,186,871 $ (214,136) $ Intergovernmental 16,695,767 16,695,767 5,535,276 (11,160,491) Use of money and property 23,000 23,000 128,799 105,799 Total revenues 19,119,774 19,119,774 7,850,946 (11,268,828) EXPENDITURES:

Current:

Public works 730,319 730,319 453,334 276,985 Recreation and human services 10,000 10,000 59,307 (49,307) Capital outlay 31,900 31,900 17,937 13,963 Debt service:

Principal retirement - - 4,489 (4,489) Interest and fiscal charges -
- 28,826 (28,826)
Total expenditures 772,219 772,219 563,893 208,326

REVENUES OVER (UNDER)
EXPENDITURES 18,347,555 18,347,555 7,287,053 (11,060,502)

OTHER FINANCING
SOURCES (USES):

Transfers out (19,516,267) (19,636,267) (6,297,421) 13,338,846 Proceeds from the sale of assets - - 12,495 12,495 Total other financing sources (uses) (19,516,267) (19,636,267) (6,284,926) 13,351,341 NET CHANGE IN FUND BALANCE (1,168,712)$ (1,288,712) $ 1,002,127 2,290,839 $ FUND BALANCE:

Beginning of year 4,392,429
End of year 5,394,556 $
City of Gardena
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget to Actual Public Works Grants Special Revenue Fund
For the Year Ended June 30, 2024
Budgeted Amounts
133
Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Intergovernmental 4,322,192 $ 4,322,192 $ 1,847,030 $ (2,475,162) $ Use of money and property 4,000 4,000 29,445 25,445 Miscellaneous 31,000 31,000 52,592 21,592 Total revenues 4,357,192 4,357,192 1,929,067 (2,428,125) EXPENDITURES:

Current:

Recreation and human services 4,389,976 4,389,976 2,526,813 1,863,163 Debt service:

Principal retirement -
- 4,193 (4,193)
Total expenditures 4,389,976 4,389,976 2,531,006 1,858,970

REVENUES OVER (UNDER)
EXPENDITURES (32,784) (32,784) (601,939) (569,155)

OTHER FINANCING
SOURCES (USES):

Transfers in 32,784 32,784 229,572 196,788 Total other financing sources (uses) 32,784 32,784 229,572 196,788 NET CHANGE IN FUND BALANCE -$ - $ (372,367) (372,367) $ FUND BALANCE:

Beginning of year 404,377
End of year 32,010 $
City of Gardena
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget to Actual Human Services Grants Special Revenue Fund
For the Year Ended June 30, 2024
Budgeted Amounts
134
Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Intergovernmental 592,299 $ 592,299 $ 159,595 $ (432,704) $ Use of money and property - - 3,846 3,846 Total revenues 592,299 592,299 163,441 (428,858) EXPENDITURES:

Current:

Community development 592,299 592,299 221,335 370,964 Total expenditures 592,299 592,299 221,335 370,964

REVENUES OVER (UNDER)
EXPENDITURES - - (57,894) (57,894)

OTHER FINANCING
SOURCES (USES):

Transfers out - - (131) (131) Total other financing sources (uses) - - (131) (131) NET CHANGE IN FUND BALANCE -$ - $ (58,025) (58,025) $ FUND BALANCE:

Beginning of year 163,533
End of year 105,508 $
City of Gardena
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget to Actual Community Development Block Grant (CDBG) Special Revenue Fund For the Year Ended June 30, 2024
Budgeted Amounts
135
Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Intergovernmental 2,453,486 $ 2,453,486 $ 1,505,721 $ (947,765) $ Use of money and property - - 61,101 61,101 Total revenues 2,453,486 2,453,486 1,566,822 (886,664)

OTHER FINANCING
SOURCES (USES):

Transfers out (2,453,486) (2,453,486) (1,566,822) 886,664 Total other financing sources (uses) (2,453,486) (2,453,486) (1,566,822) 886,664 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 to Actual American Rescue Plan Special Revenue Fund
For the Year Ended June 30, 2024
Budgeted Amounts
136
137

City of Gardena

Annual Comprehensive Financial Report
For the Year Ended June 30, 2024

(This page is intentionally left blank)
138

CITY DEBT SERVICE FUNDS

DEBT SERVICE FUNDS:

To account for the accumulation of resource s for, and the payment of, interest and pr incipal on general long-term debt, includi ng certificates of participation and refunding revenue bonds, and capital leases.

2006 Refunding COPs, Series A Fund - To account for the accumulated funds for the payment of interest and principal for the certificates issued in 2006.

2007 Refunding Revenue Bonds SBRPCA Fund - To account for the accumulated funds for the payment of interest and principal for the refunding bonds issued in 2007.

2014 Taxable Lease Revenue Refunding Bonds Fund - To account for the accumulated fund s for the payment of interest and principal for the refunding bonds issued in 2014.

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.

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.

2021 Lease Revenue Bonds Fund - To account for the accumulated funds for the pa yment of interest and principal for the lease revenue bonds issued in 2021.
2006 2007 2014 2017
Refunding Refunding Taxable Lease
COP's Revenue Bonds Lease Revenue Financing
Series A SBRPCA Refunding Bonds Bonds
Cash and investments with fiscal agents 1,884,977$ 223,642 $ 9 $ - $ Prepaid items and deposits - 1,149 1,206 - Total assets 1,884,977$ 224,791 $ 1,215 $ - $ Liabilities:

Due to other funds - $ 1,149$ 2,420 $ - $ Total liabilities - 1,149 2,420 - Fund Balances:

Nonspendable - 1,149 1,206 - Restricted 1,884,977 222,493 - - Unassigned - - (2,411) - Total fund balances (deficits) 1,884,977 223,642 (1,205) - Total liabilities
and fund balances 1,884,977$ 224,791 $ 1,215 $ - $

LIABILITIES

AND FUND BALANCES
June 30, 2024
ASSETS
City of Gardena
Combining Balance Sheet
All Debt Service Fund
139
2020 2021
Taxable Pension Lease
Obligation Revenue
Bonds Bonds Total
Cash and investments with fiscal agents 47,548$ 12,290,576$ 14,446,752 $ Prepaid items and deposits 917 417 3,689 Total assets 48,465$ 12,290,993$ 14,450,441 $ Liabilities:

Due to other funds 917 $ 17,819$ 22,305 $ Total liabilities 917 17,819 22,305 Fund Balances:

Nonspendable 917 417 3,689 Restricted 46,631 12,272,757 14,426,858 Unassigned - - (2,411) Total fund balances (deficits) 47,548 12,273,174 14,428,136 Total liabilities
and fund balances 48,465$ 12,290,993$ 14,450,441 $

LIABILITIES

AND FUND BALANCES
June 30, 2024
ASSETS
City of Gardena
Combining Balance Sheet (Continued)
All Debt Service Fund
140
2006 2007 2014 2017
Refunding Refunding Taxable Lease
COP's Revenue Bonds Lease Revenue Financing
Series A SBRPCA Refunding Bonds Bonds
REVENUES:

Charges for services - $ - $ - $ - $ Use of money and property 51,052 9,420 2 - Total revenues 51,052 9,420 2 - EXPENDITURES:

Debt service:

Principal retirement 665,000 125,000 70,000 285,000 Interest and fiscal charges 360,431 61,809 438,694 2,950 Total expenditures 1,025,431 186,809 508,694 287,950

REVENUES OVER
(UNDER) EXPENDITURES (974,379) (177,389) (508,692) (287,950)

OTHER FINANCING
SOURCES (USES):

Transfers in 1,044,510 184,271 507,480 287,950 Transfers out - - - - Total other financing
sources (uses) 1,044,510
184,271 507,480 287,950
NET CHANGE IN FUND BALANCE 70,131 6,882 (1,212) - Fund balances, beginning of year 1,814,846 216,760 7 - Fund balances (deficits), end of year 1,884,977 $ 223,642 $ (1,205) $ - $ For the Year Ended June 30, 2024
City of Gardena
Combining Statement of Revenues, Expenditures and Changes in Fund Balances All Debt Service Funds
141
2020 2021
Taxable Pension Lease
Obligation Revenue
Bonds Bonds Total
REVENUES:

Charges for services 5,541,063 $ - $ 5,541,063$ Use of money and property 26,574 591,892 678,940 Total revenues 5,567,637 591,892 6,220,003 EXPENDITURES:

Debt service:

Principal retirement 3,285,063 465,000 4,895,063 Interest and fiscal charges 2,258,750 478,500 3,601,134 Total expenditures 5,543,813 943,500 8,496,197

REVENUES OVER
(UNDER) EXPENDITURES 23,824 (351,608) (2,276,194)

OTHER FINANCING
SOURCES (USES):

Transfers in 2,750 943,500 2,970,461 Transfers out - (15,350) (15,350) Total other financing
sources (uses) 2,750
928,150 2,955,111
NET CHANGE IN FUND BALANCE 26,574 576,542 678,917 Fund balances, beginning of year 20,974 11,696,632 13,749,219 Fund balances (deficits), end of year 47,548 $ 12,273,174$ 14,428,136 $ For the Year Ended June 30, 2024
City of Gardena
Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) All Debt Service Funds
142
Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Use of money and property - $ - $ 51,052$ 51,052 $ Total revenues - - 51,052 51,052 EXPENDITURES:

Debt service:

Principal retirement 665,000 665,000 665,000 - Interest and fiscal charges 360,189
360,189 360,431 (242)
Total expenditures 1,025,189 1,025,189 1,025,431 (242)

REVENUES OVER (UNDER)
EXPENDITURES (1,025,189) (1,025,189) (974,379) 50,810

OTHER FINANCING
SOURCES (USES):

Transfers in 1,025,189 1,025,189 1,044,510 19,321 Total other financing sources (uses) 1,025,189 1,025,189 1,044,510 19,321 NET CHANGE IN FUND BALANCE -$ - $ 70,131 70,131 $ FUND BALANCE:

Beginning of year 1,814,846
End of year 1,884,977 $
City of Gardena
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget to Actual 2006 Refunding COP's, Series A Debt Service Fund
For the Year Ended June 30, 2024
Budgeted Amounts
143
Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Use of money and property - $ - $ 9,420$ 9,420 $ Total revenues - - 9,420 9,420 EXPENDITURES:

Debt service:

Principal retirement 125,000 125,000 125,000 - Interest and fiscal charges 62,545
62,545 61,809 736
Total expenditures 187,545 187,545 186,809 736

REVENUES OVER (UNDER)
EXPENDITURES (187,545) (187,545) (177,389) 10,156

OTHER FINANCING
SOURCES (USES):

Transfers in 187,545 187,545 184,271 (3,274) Total other financing sources (uses) 187,545 187,545 184,271 (3,274) NET CHANGE IN FUND BALANCE -$ - $ 6,882 6,882 $ FUND BALANCE:

Beginning of year 216,760
End of year 223,642 $
City of Gardena
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget to Actual 2007 Refunding Revenue Bonds SBRPCA Debt Service Fund
For the Year Ended June 30, 2024
Budgeted Amounts
144
Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Use of money and property - $ - $ 2 $ 2 $ Total revenues - - 2 2 EXPENDITURES:

Debt service:

Principal retirement 70,000 70,000 70,000 - Interest and fiscal charges 438,444
438,444 438,694 (250)
Total expenditures 508,444 508,444 508,694 (250)

REVENUES OVER (UNDER)
EXPENDITURES (508,444) (508,444) (508,692) (248)

OTHER FINANCING
SOURCES (USES):

Transfers in 508,444 508,444 507,480 (964) Total other financing sources (uses) 508,444 508,444 507,480 (964) NET CHANGE IN FUND BALANCE -$ - $ (1,212) (1,212) $ FUND BALANCE (DEFICIT):

Beginning of year 7
End of year (1,205) $
City of Gardena
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget to Actual 2014 Taxable Lease Revenue Refunding Bonds Debt Service Fund For the Year Ended June 30, 2024
Budgeted Amounts
145
Actual Variance with
Original Final Amounts Final Budget
EXPENDITURES:

Debt service:

Principal retirement 285,000 $ 285,000 $ 285,000 $ - $ Interest and fiscal charges 2,950
2,950 2,950 -
Total expenditures 287,950 287,950 287,950 -

REVENUES OVER (UNDER)
EXPENDITURES (287,950) (287,950) (287,950) -

OTHER FINANCING
SOURCES (USES):

Transfers in 287,950 287,950 287,950 - Total other financing sources (uses) 287,950 287,950 287,950 - 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 to Actual 2017 Lease Financing Bonds Debt Service Fund
For the Year Ended June 30, 2024
Budgeted Amounts
146
Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Charges for services 5,543,563 $ 5,543,563 $ 5,541,063 $ (2,500) $ Use of money and property - - 26,574 26,574 Total revenues 5,543,563 5,543,563 5,567,637 24,074 EXPENDITURES:

Debt service:

Principal retirement 3,285,063 3,285,063 3,285,063 - Interest and fiscal charges 2,258,500
2,258,500 2,258,750 (250)
Total expenditures 5,543,563 5,543,563 5,543,813 (250)

REVENUES OVER (UNDER)
EXPENDITURES - - 23,824 23,824

OTHER FINANCING
SOURCES (USES):

Transfers in - - 2,750 2,750 Total other financing sources (uses) - - 2,750 2,750 NET CHANGE IN FUND BALANCE -$ - $ 26,574 26,574 $ FUND BALANCE:

Beginning of year 20,974
End of year 47,548 $
City of Gardena
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget to Actual 2020 Taxable Pension Obligation Bonds Debt Service Fund For the Year Ended June 30, 2024
Budgeted Amounts
147
Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Use of money and property - $ - $ 591,892$ 591,892 $ Total revenues - - 591,892 591,892 EXPENDITURES:

Debt service:

Principal retirement 465,000 465,000 465,000 - Interest and fiscal charges 478,500
478,500 478,500 -
Total expenditures 943,500 943,500 943,500 -

REVENUES OVER (UNDER)
EXPENDITURES (943,500) (943,500) (351,608) 591,892

OTHER FINANCING
SOURCES (USES):

Transfers in 943,500 943,500 943,500 - Transfers out (10,944,000) (10,944,000) (15,350) 10,928,650 Total other financing sources (uses) (10,000,500) (10,000,500) 928,150 10,928,650 NET CHANGE IN FUND BALANCE (10,944,000)$ (10,944,000) $ 576,542 11,520,542$ FUND BALANCE:

Beginning of year 11,696,632
End of year 12,273,174 $
City of Gardena
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget to Actual 2021 Lease Revenue Bonds Debt Service Fund
For the Year Ended June 30, 2024
Budgeted Amounts
148
149

City of Gardena

Annual Comprehensive Financial Report
For the Year Ended June 30, 2024

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150

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:

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.

Liability Workers' Health
Insurance Compnesation Benefit Total
ASSETS
Current assets:

Cash and investments 3,656,688 $ 2,105,747 $ 5,731,937 $ 11,494,372 $ Account receivables 7,917 - 1,976 9,893 Prepaid items and deposits 299 69,542 17,139 86,980 Total current assets 3,664,904 2,175,289 5,751,052 11,591,245 Total assets 3,664,904 2,175,289 5,751,052 11,591,245

LIABILITIES
Current liabilities:

Accounts payable 201,536 - 1,810 203,346 Accrued liabilities - 59,079 19,264 78,343 Salaries and benefits payable 886 1,608 - 2,494 Claims payable, due within one year 1,178,705 2,028,470 707,920 3,915,095 Total current liabilities 1,381,127 2,089,157 728,994 4,199,278 Long-term liabilities:

Claims payable, due in more than one year 1,651,818 10,142,351 - 11,794,169 Total long-term liabilities 1,651,818 10,142,351 - 11,794,169 Total liabilities 3,032,945 12,231,508 728,994 15,993,447

NET POSITION
Unrestricted (deficit) 631,959 (10,056,219) 5,022,058 (4,402,202) Total net position 631,959$ (10,056,219)$ 5,022,058 $ (4,402,202) $ City of Gardena
Combining Schedule of Net Position
Internal Service Funds
June 30, 2024
151
Liability Workers' Health
Insurance Compnesation Benefit Total
OPERATING REVENUES:

Charges for services 1,349,585 $ 1,437,241 $ 10,781,450 $ 13,568,276 $ Other 201,450 15,375 821,263 1,038,088 Total operating revenues 1,551,035 1,452,616 11,602,713 14,606,364 OPERATING EXPENSES:

Salaries and benefits 38,175 83,288 - 121,463 Insurance claims 1,278,663 805,365 3,635,222 5,719,250 General and administrative 1,374,864 480,627 6,036,251 7,891,742 Other operating expenses 105,413 92,158 202,199 399,770 Total operating expenses 2,797,115 1,461,438 9,873,672 14,132,225 OPERATING INCOME (1,246,080) (8,822) 1,729,041 474,139 NON-OPERATING REVENUES (EXPENSES):

Interest income 74,547 45,728 153,624 273,899 Total non-operating revenues (expenses) 74,547 45,728 153,624 273,899 INCOME BEFORE TRANSFERS (1,171,533) 36,906 1,882,665 748,038 Transfers in 986,852 1,400,000 - 2,386,852 Transfers out - - (1,286,852) (1,286,852) Total transfers 986,852 1,400,000 (1,286,852) 1,100,000 Change in net position (184,681) 1,436,906 595,813 1,848,038 Net position (deficit), beginning of year 816,640 (11,493,125) 4,426,245 (6,250,240) Net position (deficit), end of year 631,959 $ (10,056,219)$ 5,022,058 $ (4,402,202) $ City of Gardena
Combining Schedule of Revenues, Expenses, and Changes in Net Position All Internal Service Funds
For the year ended June 30, 2024
152
Liability Workers' Health
Insurance Compnesation Benefit Total
CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from users 1,347,403 $ 1,437,241 $ 10,779,474 $ 13,564,118 $ Receipts from claims and recoveries 201,450 15,375 821,263 1,038,088 Payments for insurance claims (1,962,429) (2,903,224) (3,603,660) (8,469,313) Payment to suppliers (1,628,362) (613,950) (6,248,164) (8,490,476) Net cash provided (used by) operating activities (2,041,938) (2,064,558) 1,748,913 (2,357,583)

CASH FLOWS FROM NON-CAPITAL
FINANCING ACTIVITIES:

Transfers from other funds 986,852 1,400,000 - 2,386,852 Transfers to other funds - - (1,286,852) (1,286,852) Net cash provided (used by)
non-capital financing activities 986,852
1,400,000 (1,286,852) 1,100,000
CASH FLOWS FROM INVESTING ACTIVITIES:

Interest received 74,547 45,728 153,624 273,899 Net cash provided (used by) investing activities 74,547 45,728 153,624 273,899 Net increase (decrease) in cash and cash equivalents (980,539) (618,830) 615,685 (983,684) Cash and equivalents, beginning of year 4,637,227 2,724,577 5,116,252 12,478,056 Cash and equivalents, end of year 3,656,688 $ 2,105,747 $ 5,731,937 $ 11,494,372 $

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

Operating income (loss) (1,246,080) $ (8,822) $ 1,729,041$ 474,139 $ Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:

Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable (2,182) - (1,976) (4,158) (Increase) decrease in prepaid items and deposits 1,326 (67,396) (5,533) (71,603) Increase (decrease) in accounts payable 108,126 (736) (4) 107,386 Increase (decrease) in accrued liabilities (257,537) 26,967 (4,177) (234,747) Increase (decrease) in salaries and benefits payable 886 1,608 - 2,494 Increase (decrease) in claims payable (646,477) (2,016,179) 31,562 (2,631,094) Total adjustments (795,858) (2,055,736) 19,872 (2,831,722) Net cash provided (used) by operating activities (2,041,938)$ (2,064,558) $ 1,748,913 $ (2,357,583) $ City of Gardena
Combining Schedule of Cash Flows
All Internal Service Funds
For the year ended June 30, 2024
153
154

City of Gardena

Annual Comprehensive Financial Report
For the Year Ended June 30, 2024

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City of Gardena

Annual Comprehensive Financial Report
For the Year Ended June 30, 2024

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STATISTICAL SECTION
Fiscal Year 2023-24

157

STATISTICAL SECTION
Fiscal Year 2023-24

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158

CITY OF GARDENA

STATISTICAL SECTION
Fiscal Year 2023-24

This part of the City of Gardena's annual comprehensive financ ial report presents detailed information as a context for underst anding what the information in the financial statements, note disclosures, and required supplementary information say about the government's ov erall financial health.

CONTENTS 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 160
- Changes in Net Position 162
- Fund Balances of Governmental Funds 166
- Changes in Fund Balances - Governmental Funds 168
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. - Governmental Revenues by Sources 170
- General Governmental Expenditures by Function 172
- Assessed Valuation and Actual Value of Taxable Property 174 - Assessed Value of Property by User Code 176
- Assessed Value and Estimated Value of Taxable Property 178 - Construction and Bank Deposits 180
- Property Tax Rates - All Overlapping Governments 182
- Direct and Overlapping Property Tax Rates 184
- Ten Largest Property Taxpayers 186
- Top 25 Sales Tax Producers 187
- Property Tax Levies, Tax Collections, and Delinquency 188 - Card Club Gross Revenue Fee 189
- Utility Users Tax Received 190
- Taxable Sales by Category 191
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. - Ratio of Outstanding Debt by Type 192
- Pledged - Revenue Coverage 194
- Ratio of General Bonded Debt Outstanding 195
- Direct and Overlapping Bonded Debt 196
- Legal Debt Margin Information 197
- Debt Service Payment Schedule 199
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. - Demographic and Economic Statistics 202
- Ten Principal Employers 203
- Unemployment Rates 204
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.
- Full-Time and Part-Time City Employees by Function 205 - Employee Union Representation 206
- Operating Indicators 207
- Capital Asset Statistics by Function 208

159

City of Gardena

Annual Comprehensive Financial Report
For the Year Ended June 30, 2024

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2023-24 2022-23 2021-22 2020-21 2019-20
Governmental Activities
Net Investment in Capital Assets 54,842,470 $ 43,557,695 $ 40,126,502 $ 28,550,313 $ 30,055,713 $ Restricted for:

Debt Service 2,162,116 1,994,718 1,617,913 1,681,507 1,708,162 Employment and Training Services - - - - - Law Enforcemen
t 1,046,383 1,414,499 1,459,666 1,593,265 1,080,052
Local Street Improvements 8,671,919 14,126,722 10,385,580 9,329,940 7,956,523 Economic Development 5,971,740 6,965,240 6,914,470 5,783,794 4,393,701 Capital Projects 17,981,086 301,897 273,887 273,887 273,887 Human Services 30,747 1,219,550 1,014,200 662,807 689,290 Community Developmen
t 105,508 - - - - Total Restricted: 35,969,499 26,022,626 21,665,716 19,325,200 16,101,615 Unrestricted(2) (119,308,822) (115,019,564) (95,499,040) (114,185,399) (126,640,099) Total governmental activities net position ($28,496,853) ($45,439,243) ($33,706,822) ($66,309,886) ($80,482,771) Business-type Activities
Net Investment in Capital Assets $81,127,691 $59,138,198 $59,701,427 $60,014,796 $50,474,813 Unrestricted(2) (30,126,568) (32,642,965) (33,216,568) (34,052,901) (32,350,671) Total business-type activities net position $51,001,123 $26,495,233 $26,484,859 $25,961,895 $18,124,142 Primary Government
Net Investment in Capital Assets $135,970,161 $102,695,893 $99,827,929 $88,565,109 $80,530,526 Restricted 35,969,499 26,022,626 21,665,716 19,325,200 16,101,615 Unrestricte
d(2) (149,435,390) (147,662,529) (128,715,608) (148,238,300) (158,990,770) Total Primary Government Net Position: 22,504,270$ (18,944,010) $ (7,221,963) $ (40,347,991) $ (62,358,629) $ 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) enablin g
legislation is enacted by the City.

Fiscal Year
City of Gardena
Net Position by Component (1)
Last Ten Fiscal Years Ended June 30, 2024
(accrual basis of accounting)
Source: City of Gardena, Administrative Services Department - Finance Division 160
2018-19 2017-18(2) 2016-17 2015-16 2014-15
Governmental Activities
Net Investment in Capital Assets 47,404,733 $ 27,748,135 $ 28,138,906 $ 27,897,717 $ 26,430,711 $ Restricted for:

Debt Service 1,669,313 1,916,945 1,924,432 2,679,363 2,965,697 Employment and Training Services - 5,287 43,611 164,116 300,190 Law Enforcemen
t 1,344,114 921,976 914,062 1,251,314 1,701,810
Local Street Improvements 7,130,678 6,060,770 6,205,701 7,072,378 7,930,518 Local Street Improvements 5,306,507 6,006,024 1,986,202 2,394,395 2,292,714 Economic Development 295,912 571,089 295,912 301,546 - Other Purposes 657,424 633,275 651,830 289,859 447,605
Specific Projects and Programs - - - - - Total Restricted: 16,403,948 16,115,366 12,021,750 14,152,971 15,638,534 Unrestricted (131,787,090) (107,886,487) (99,400,392) (60,913,888) (67,531,463) Total governmental activities net positio
n ($67,978,409) ($64,022,986) ($59,239,736) ($18,863,200) ($25,462,218) Business-type Activities
Net Investment in Capital Assets $53,054,448 $56,261,253 $60,150,166 $62,151,750 $67,684,810 Unrestricted (29,646,082) (27,969,730) (27,390,162) (21,068,543) (18,107,410) Total business-type activities net position $23,408,366 $28,291,523 $32,760,004 $41,083,207 $49,577,400 Primary Government
Net Investment in Capital Assets $100,459,181 $84,009,388 $88,289,072 $90,049,467 $94,115,521 Restricted 16,403,948 16,115,366 12,021,750 14,152,971 15,638,534 Unrestricte
d (161,433,172) (135,817,893) (126,790,554) (81,982,431) (85,638,873) Total Primary Government Net Position: (44,570,043)$ (35,693,139) $ (26,479,732) $ 22,220,007 $ 24,115,182 $ 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) enablin g
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 (Continued) (1)
Last Ten Fiscal Years Ended June 30, 2024
(accrual basis of accounting)
Source: City of Gardena, Administrative Services Department - Finance Division 161
2023-24 2022-23 2021-22 2020-21 2019-20
Expenses
Governmental Activitie
s
General Government 10,765,058$ 7,470,021 $ 7,771,663 $ 7,807,099 $ 7,383,173 $ Public Safety 53,473,334 77,971,300 27,964,662 47,363,640 47,760,821 Public Works 11,783,411 10,737,606 11,239,762 7,543,698 10,958,845 Recreation and Human Services 8,503,950 8,229,820 7,566,226 6,766,739 6,600,989 Community Developmen
t 5,022,928 2,266,794 5,946,949 2,986,934 2,692,644
Interest and fiscal charges 3,233,912 3,773,164 3,888,463 2,532,013 1,156,041 Total governmental activities expenses: 92,782,593 110,448,705 64,377,725 75,000,123 76,552,513 Business-type Activities
GTrans 31,973,093 28,643,376 27,966,497 29,505,837 31,024,629 Sewer 1,723,699 1,466,607 1,423,680 1,190,734 1,651,788 Total business-type activities expenses: 33,696,792 30,109,983 29,390,177 30,696,571 32,676,417 Total primary government expenses
: 126,479,385 140,558,688 93,767,902 105,696,694 109,228,930 Program Revenues
Governmental Activities
Charges for services:

General Government 10,785,228 4,149,501 8,769,328 5,333,187 4,072,004 Public Safety 2,694,787 1,251,096 1,236,057 1,240,360 1,338,121 Public Works 3,112,536 396,408 534,045 378,834 351,732
Recreation and Human Services 632,632 3,647,400 3,647,094 2,750,536 3,801,562 Community Developmen
t 939,062 2,521,913 3,139,836 2,499,553 2,246,297
Interest and fiscal charges - - - - - Operating Grants and Contributions 8,113,744 5,814,708 4,081,043 14,663,306 3,351,864 Capital Grants and Contributions 5,535,276 3,329,828 2,511,878 3,017,989 1,621,611 Total governmental activities program revenues: 31,813,265 21,110,854 23,919,281 29,883,765 16,783,191 Business-type Activities
Charges for services:

GTrans 1,947,714 1,793,580 1,643,970 135,875 1,766,952
Sewer 2,545,381 2,473,501 2,610,910 2,685,365 2,323,753 Operating Grants and Contributions 27,682,663 22,744,442 22,018,364 20,725,314 21,277,188 Capital Grants and Contributions 25,560,140 3,186,920 3,915,704 14,856,026 1,962,998 Total business-type activities program revenues: 57,735,898 30,198,443 30,188,948 38,402,580 27,330,891 Total primary government revenues
: 89,549,163$ 51,309,297 $ 54,108,229 $ 68,286,345 $ 44,114,082 $ City of Gardena
Changes in Net Position
Last Ten Fiscal Years Ended June 30, 2024
(accrual basis of accounting)
Fiscal Year
Source: City of Gardena, Administrative Services Department - Finance Division 162
2018-19 2017-18 2016-17 2015-16 2014-15
Expenses
Governmental Activitie
s
General Government 8,609,254$ 6,177,468 $ 5,848,247 $ 5,730,664 $ 6,239,825 $ Public Safety 43,617,238 41,420,762 38,700,824 36,304,203 35,912,110 Public Works 11,717,321 7,120,106 6,956,766 8,545,467 9,846,657 Recreation and Human Services 6,395,004 9,742,993 9,154,921 6,777,838 6,677,536 Community Developmen
t 2,662,554 2,938,656 2,796,216 2,538,835 2,675,341
Interest and fiscal charges 1,191,118 1,241,054 1,382,078 1,365,398 1,805,649 Total governmental activities expenses: 74,192,489 68,641,039 64,839,052 61,262,405 63,157,118 Business-type Activities
GTrans 28,646,739 27,804,739 28,195,640 26,410,211 26,643,082 Sewer 1,512,189 1,432,695 1,760,303 1,046,864 1,021,131 Total business-type activities expenses: 30,158,928 29,237,434 29,955,943 27,457,075 27,664,213 Total primary government expenses
: 104,351,417 97,878,473 94,794,995 88,719,480 90,821,331 Program Revenues
Governmental Activities
Charges for services:

General Government 4,107,289 3,864,795 3,504,735 3,298,306 3,022,929 Public Safety 1,862,764 1,312,945 1,422,001 1,174,116 1,337,761 Public Works 351,463 418,667 615,289 513,495 340,541
Recreation and Human Services 2,962,339 2,685,240 2,979,625 2,315,212 2,238,445 Community Developmen
t 1,687,652 1,724,501 1,771,754 2,187,082 1,432,560
Interest and fiscal charges - - - - - Operating Grants and Contributions 3,142,207 3,719,048 2,048,938 2,067,123 2,963,405 Capital Grants and Contributions 2,037,030 2,002,799 1,268,576 1,918,489 7,167,801 Total governmental activities program revenues: 16,150,744 15,727,995 13,610,918 13,473,823 18,503,442 Business-type Activities
Charges for services:

GTrans 2,382,758 2,459,105 2,482,516 2,685,573 3,346,233 Sewer 2,016,346 1,790,296 954,552 673,199 727,054
Operating Grants and Contributions 20,612,788 19,855,368 17,462,145 16,905,476 17,353,740 Capital Grants and Contributions 1,086,741 576,031 3,120,351 1,850,968 832,350 Total business-type activities program revenues: 26,098,633 24,680,800 24,019,564 22,115,216 22,259,377 Total primary government revenues
: 42,249,377$ 40,408,795 $ 37,630,482 $ 35,589,039 $ 40,762,819 $ City of Gardena
Fiscal Year
Changes in Net Position (Continued)
Last Ten Fiscal Years Ended June 30, 2024
(accrual basis of accounting)
Source: City of Gardena, Administrative Services Department - Finance Division 163
2023-24 2022-23 2021-22 2020-21 2019-20
Net (expense)/revenue: (1)
Governmental activities (60,969,328) (89,337,851) (40,458,444) (46,089,053) (59,769,322) Business-type activities 24,039,106 88,460 798,771 7,676,625 (5,345,526) Total net revenues (expenses): (36,930,222) (89,249,391) (39,659,673) (38,412,428) (65,114,848) General Revenue and Other Changes in Net Position
Governmental activities
Taxes:

Property taxes 10,141,426 9,985,883 9,186,838 8,799,364 8,205,539 Sales tax 28,056,992 29,662,286 27,908,699 23,760,125 12,440,147 Business license 3,477,728 2,733,939 2,647,094 2,508,287 2,438,304 Utility user taxes 6,404,308 6,317,851 5,481,395 4,970,799 4,801,229 Franchise taxes 3,724,876 3,275,380 3,075,659 2,809,101 2,816,277 Card club taxes 8,910,456 8,633,144 10,544,947 3,999,147 4,874,457 Other taxes 4,819,341 5,882,066 4,626,009 3,764,716 3,920,393 Vehicle license - unrestricte
d 8,558,629 8,073,890 7,485,678 7,203,563 6,788,130
Investment income 2,260,394 1,881,428 (1,520,476) (57,164) 1,036,057 Miscellaneous 1,399,408 643,709 3,281,484 2,730,183 690,353 Gain on sale of assets - - - (190,979) (863,795) Transfers 158,160 515,854 344,181 (35,204) 117,869 Total governmental activities 77,911,718 77,605,430 73,061,508 60,261,938 47,264,960 Business-type activities
Investment incom
e 624,944 437,768 68,374 125,924 162,760
Miscellaneous - - - - - Gain (loss) on sale of assets - - - - 16,411 Transfers (158,160) (515,854) (344,181) 35,204 (117,869) Total business-type activities: 466,784 (78,086) (275,807) 161,128 61,302 Total primary government: 78,378,502 77,527,344 72,785,701 60,423,066 47,326,262 Change in Net Position
Governmental activities 16,942,390 (11,732,421) 32,603,064 14,172,885 (12,504,362) Business-type activities 24,505,890 10,374 522,964 7,837,753 (5,284,224) Total primary government: 41,448,280 $ (11,722,047) $ 33,126,028 $ 22,010,638 $ (17,788,586) $ (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 .

City of Gardena
Fiscal Year
Changes in Net Position (Continued)
Last Ten Fiscal Years Ended June 30, 2024
(accrual basis of accounting)
Source: City of Gardena, Administrative Services Department - Finance Division 164
2018-19 2017-18 2016-17 2015-16 2014-15
Net (expense)/revenue: (1)
Governmental activities (58,041,745) (52,913,044) (51,228,234) (47,788,582) (44,653,676) Business-type activities (4,060,295) (4,556,634) (5,936,379) (5,341,859) (5,404,836) Total net revenues (expenses): (62,102,040) (57,469,678) (57,164,613) (53,130,441) (50,058,512) General Revenue and Other Changes in Net Position
Governmental activities
Taxes:

Property taxes 7,735,545 7,150,957 7,130,426 6,729,849 6,402,520 Sales tax 13,466,178 11,006,901 11,204,697 11,227,326 9,965,476 Business license 2,843,375 2,727,532 2,606,279 2,536,438 2,547,148 Utility user taxes 4,955,645 5,088,450 5,147,736 5,212,410 5,335,375 Franchise taxes 2,777,572 2,609,219 2,440,108 2,534,820 2,417,342 Card club taxes 8,101,583 8,071,001 8,975,991 9,057,202 9,517,550 Other taxes 4,354,725 3,985,315 3,855,705 3,479,372 3,136,222 Vehicle license - unrestricte
d 6,378,321 5,994,920 5,677,909 5,445,385 5,166,984
Investment income 1,061,732 158,902 129,187 499,279 248,773 Miscellaneous 1,384,272 1,134,729 2,261,772 2,566,919 3,329,396 Gain on sale of assets 10,622 201,560 883,201 1,877,151 - Transfers 978,428 38,632 9,898 3,221,449 200,846
Total governmental activities 54,047,998 48,168,118 50,322,909 54,387,600 48,267,632 Business-type activities
Investment incom
e 155,566 124,243 77,618 55,492 24,196
Miscellaneous - 2,542 18,512 13,623 4,370 Gain (loss) on sale of assets - - - - - Transfers (978,428) (38,632) (9,898) (3,221,449) (200,846) Total business-type activities: (822,862) 88,153 86,232 (3,152,334) (172,280) Total primary government: 53,225,136 48,256,271 50,409,141 51,235,266 48,095,352 Change in Net Position
Governmental activities (3,993,747) (4,744,926) (905,325) 6,599,018 3,613,956 Business-type activities (4,883,157) (4,468,481) (5,850,147) (8,494,193) (5,577,116) Total primary government: (8,876,904) $ (9,213,407) $ (6,755,472) $ (1,895,175) $ (1,963,160) $ (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 .

City of Gardena
Changes in Net Position (Continued)
Last Ten Fiscal Years Ended June 30, 2024
(accrual basis of accounting)
Fiscal Year
Source: City of Gardena, Administrative Services Department - Finance Division 165
2023-24 2022-23 2021-22 2020-21 2019-20
General Fund
Nonspendable (1) 346,983$ 327,406 $ 352,425 $ 1,214,022 $ 302,361 $ Restricted (1) - - - - - Committed (1) 33,309,406 26,848,674 26,936,620 18,697,703 7,310,676 Assigned (1) 25,660,594 22,662,517 14,236,728 8,670,503 2,848,416 Unassigned (1) 300,000 300,000 300,001 200,000 173,122 Total General Fund: $59,616,983 $50,138,597 $41,825,774 $28,782,228 $10,634,575 All Other Governmental Funds
Nonspendable (1) 9,764$ 311,097 $ 329,979 $ 342,428 $ 350,432 $ Restricted (1) 29,675,971 36,402,832 31,699,951 16,660,769 15,682,481 Committed (1) 301,894 - - - - Assigned (1) - - - - - Unassigned (1) 5,969,329 (347,129) (185,700) (1,298,092) (81,218) Total all other governmental funds: 35,956,958 $ 36,366,800 $ 31,844,230 $ 15,705,105 $ 15,951,695 $ 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, 2024
(modified accrual basis of accounting)
General Fund

62.38%
All Other
Governmental
Funds

49.82%
Fund Balances
Fiscal Year Ended June 30, 2024
166
2018-19 2017-18 2016-17 2015-16 2014-15
General Fund
Nonspendable (1) 333,803$ 385,931 $ 294,133 $ 189,819 $ 179,244 $ Restricted (1) - 5,287 43,611 164,116 327,752 Committed (1) 13,287,448 19,315,675 19,413,135 17,542,367 7,274,423 Assigned (1) 2,622,256 3,609,547 3,936,266 2,773,686 7,579,856 Unassigned (1) 271,377 200,000 200,000 200,000 400,362 Total General Fund: $16,514,884 $23,516,440 $23,887,145 $20,869,988 $15,761,637 All Other Governmental Funds
Nonspendable (1) 308,741$ 16,769,655 $ - $ - $ 4,734$ Restricted (1) 16,089,466 - 10,073,376 11,726,127 13,048,054 Committed (1) - - 3,765,323 3,776,154 3,051,323 Assigned (1) - - - (20,809) 179,079 Assigned (1) - - - - - Total all other governmental funds: 16,398,207 $ 16,769,655 $ 13,838,699 $ 15,481,472 $ 16,283,190 $ 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, 2024
(modified accrual basis of accounting)

15.90 15.48

13.84 16.77

16.40 15.95

15.71 31.84

36.37 0.00
0 5
10 15
20 25
30 35
40 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 (in Millions)
Fiscal Year
Fund Balances
All Other Governmental Funds
Last Ten Fiscal Years
167
2023-24 2022-23 2021-22 2020-21 (2) 2019-20
Revenues:

Taxes 75,397,665 $ 74,247,538 $ 70,663,462 $ 57,968,745 $ 46,128,710 $ Licenses and permits 3,168,262 2,158,749 2,900,062 2,389,538 1,646,059 Use of money and property 3,265,756 1,881,431 (1,517,780) (56,416) 1,036,059 Intergovernmental 13,372,447 12,265,983 13,689,853 16,142,006 7,157,208 Fines, forfeitures, and penalties 1,078,296 1,235,414 3,660,686 3,168,468 1,112,890 Charges for services 11,823,454 5,723,983 5,448,044 5,188,250 6,142,402 Miscellaneous 674,091 720,310 5,245,065 1,664,391 831,773 Total Revenues: 108,779,971 98,233,408 100,089,392 86,464,982 64,055,101 Expenditures:

Current:

General governmen
t 8,544,614 6,208,151 5,296,661 5,325,270 6,576,421
Public safety 48,263,127 42,327,977 41,545,473 37,558,085 41,295,066 Public works 9,087,374 8,435,997 7,868,811 6,776,073 8,372,502 Recreation and Human resources 7,353,343 8,221,690 7,318,062 6,232,436 6,155,882 Community developmen
t 4,190,330 2,837,108 3,061,632 2,789,072 2,474,928
Capital outlay 12,720,112 8,816,842 8,929,107 5,199,699 3,636,782 Debt service:

Principal 4,976,825 5,052,989 3,850,985 1,173,158 967,696 Interest and fiscal charges 3,651,410 3,750,867 3,899,642 2,340,735 1,155,814 Total Expenditures: 98,787,135 85,651,621 81,770,373 67,394,528 70,635,091 Excess of Revenues over (under) Expenditure
s 9,992,836 12,581,787 18,319,019 19,070,454 (6,579,990) Other Financing Sources (Uses):

Proceeds of long-term debt - - - - - Proceeds from sale of assets 17,548 34,093 127,623 3,492 46,241 Proceeds from debt issuance - - 15,391,848 79,193,585 - Issuance of capital leases - - - - - Costs of Bond issuance - - - - - Contribution to pension trust - - - (78,731,264) - Issuance of new debt - 1,048,143 - - - Issuance discount - - - - - Issuance of loans - - - - 86,223 Transfers in 18,476,483 18,089,299 16,400,118 12,724,862 7,476,706 Transfers out (19,418,323) (18,917,929) (21,055,937) (14,360,066) (7,356,001) Total Other Financing Sources (Uses): (924,292) 253,606 10,863,652 (1,169,391) 253,169 Net change in fund balances 9,068,544 $ 12,835,393 $ 29,182,671 $ 17,901,063 $ (6,326,821) $ Debt service as a percentage of
noncapital expenditures: (1) 8.77% 10.41% 9.66% 5.39% 3.14% 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) 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, 2024
Changes In Fund Balances - Governmental Funds
168
2018-19 2017-18 2016-17 2015-16 2014-15
Revenues:

Taxes 50,827,680 $ 47,527,518 $ 46,847,209 $ 46,222,802 $ 44,488,617 $ Licenses and permits 1,735,711 1,694,670 1,800,752 1,521,379 1,109,169 Use of money and property 1,061,734 158,902 129,186 499,278 248,773 Intergovernmental 7,409,245 6,201,645 5,549,872 5,705,627 11,575,383 Fines, forfeitures, and penalties 2,261,549 1,124,079 1,102,235 1,794,049 1,433,758 Charges for services 5,270,787 5,070,020 5,155,573 4,545,874 4,208,616 Miscellaneous 892,283 1,197,011 2,944,050 1,807,155 3,141,148 Total Revenues: 69,458,989 62,973,845 63,528,877 62,096,164 66,205,464 Expenditures:

Current:

General governmen
t 6,004,196 5,025,047 4,914,416 4,886,467 5,108,064
Public safety 45,783,773 37,851,314 36,977,198 34,674,068 32,542,544 Public works 8,058,427 4,012,134 4,064,485 5,584,816 5,352,388 Recreation and Human resources 6,138,238 9,194,054 8,631,034 6,498,830 6,135,402 Community developmen
t 2,382,263 2,734,299 2,757,861 2,533,734 2,594,007
Capital outlay 6,127,264 3,794,206 3,349,481 8,332,649 8,064,783 Debt service:

Principal 902,804 627,898 2,703,105 754,158 9,228,535
Interest and fiscal charges 1,198,262 1,227,659 1,431,641 1,369,936 2,029,383 Total Expenditures: 76,595,227 64,466,611 64,829,221 64,634,658 71,055,106 Excess of Revenues over (under) Expenditure
s (7,136,238) (1,492,766) (1,300,344) (2,538,494) (4,849,642) Other Financing Sources (Uses):

Proceeds of long-term debt - - - - - Proceeds from sale of property 16,413 423,735 1,024,538 4,990,156 - Proceeds from debt issuance - - - - - Issuance of capital leases - - - - - Costs of Bond issuance - - - - - Contribution to pension trust - - - - - Issuance of new debt - - 1,635,000 - 9,110,000 Issuance discount - - - - (297,460) Issuance of loans 86,223 86,223 86,223 311,026 408,740 Transfers in 9,013,583 6,747,282 6,487,933 11,143,623 10,368,953 Transfers out (8,350,155) (6,708,650) (6,558,966) (9,599,678) (11,368,107) Total Other Financing Sources (Uses): 766,064 548,590 2,674,728 6,845,127 8,222,126 Net change in fund balances (6,370,174) $ (944,176) $ 1,374,384 $ 4,306,633 $ 3,372,484 $ Debt service as a percentage of
noncapital expenditures: (1) 2.87% 3.03% 6.64% 3.51% 17.16% 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, 2024
(modified accrual basis of accounting)
169
Permits, Fines Uses of
Fiscal Licenses and Money and
Year Taxes and Fees Forfeitures Property
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) 2022-23 74,247,538 2,158,749 1,235,414 1,881,431 2023-24 75,397,665 3,168,262 1,078,296 3,265,756 Source: City of Gardena, Administrative Services Department - Finance Division City of Gardena
Governmental Revenues By Sources
Last Ten Fiscal Years
Taxes

69.31%
Permits/Licenses

2.91%
Fine/Forfeitures

0.99%
Use of
Money/Property

3.00%
Inter-Governmental

8.74%
Service Charges

10.87%
Other Revenue

0.62%
General Revenues by Sources
Fiscal Year Ended June 30, 2024
170
Charges
Fiscal Inter- for Other
Year Governmental Services Revenues Total
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 2022-23 12,265,983 5,723,983 720,310 98,233,408 2023-24 13,372,447 11,823,454 674,091 108,779,971 Source: City of Gardena, Administrative Services Department - Finance Division City of Gardena
Governmental Revenues By Sources (Continued)
Last Ten Fiscal Years
$66.2M
$62.1M $63.5M $63.M $69.5M $64.1M
$86.5M
$100.1M $98.2M
$108.8M
0 20,000,000
40,000,000
60,000,000
80,000,000
100, 000,000
120, 000,000
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Fiscal Year
General Revenues by Sources
Last Ten Fiscal Years
171
Recreation
and
Fiscal General Public Public Human
Year Government Safety Works Services
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 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 2022-23 6,208,151 42,327,977 8,435,997 8,221,690 2023-24 8,544,614 48,263,127 9,087,374 7,353,343 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.
(2) 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

8.65%
Public Safety

48.86%
Public Works

9.20%
Recreation/
Human Services

7.44%
Community
Development

4.24%
Capital Outlay

12.88%
Debt Services

8.73%
General Governmental Expenditures
by Function
Fiscal Year ended June 30, 2024
172
Fiscal Community Capital Debt
Year Development Outlay Service (1)(2) Total
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 2022-23 2,837,108 8,816,842 8,803,856 85,651,621 2023-24 4,190,330 12,720,112 8,628,235 98,787,135 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.
(2) 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 (Continued) Last Ten Fiscal Years
$71.1M
$64.6M $64.8M $64.5M
$76.6M
$70.6M $67.4M
$81.8M $85.7M
$98.8M
0 20,000,000
40,000,000
60,000,000
80,000,000
100, 000,000
120, 000,000
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Fiscal Year
Total General Governmental Expenditures
Last Ten Fiscal Years
173
Fiscal Improve- Personal Improve- Personal Other
Year Land ments Property Total Land ments Property Exemptions Total 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 2022-23 213,049 0 0 213, 049 4,581,077,862 3, 256,656,564 27,312,819 (83,188,820) 7,781,858,425 2023-24 79,755 0 0 79,755 4,996,682,580 3, 447,486,489 29,700,615 (128,753,189) 8,345,116,495 Source: (1) L.A. County Assessor 2023/24 Combined Tax Rolls (2) Hdl Coren & Cone.

City of Gardena
Assessed Valuation (1) and Actual Value of Taxable Property Last Ten Fiscal Years

STATE ASSESSED LOCALLY ASSESSED

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 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 Land

56.88%
Improvements

40.68%
Personal Property

2.45%
Assessed Valuation by Categories
(Total Secured and Unsecured)
Fiscal Year Ended June 30, 2024
174
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 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 2022-23 122,253,280 171,000,192 (1,151,403) 292,102,069 8,158,513, 766 8,074,173,543 7. 53% 0.11644% 44,725,326 2023-24 126,122,624 185,436,471 0 311,559, 095 8,785,508,534 8,656,755, 345 7.22% 0.11618% 44,144,720 Source: (1) L.A. County Assessor 2023/24 Combined Tax Rolls (2) Hdl Coren & Cone.

TOTALS
City of Gardena
Assessed Valuation (1) and Actual Value of Taxable Property (Continued) Last Ten Fiscal Years

LOCALLY ASSESSED

UNSECURED
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.
$5,170
$5,453
$5,687
$6,005
$6,398
$6,801
$7,224
$7,509
$8,074
$8,657
0 1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 (In Millions)
Fiscal Year
Total Assessed Valuation
(Taxable Values)
Last Ten Fiscal Years
175
CATEGORY 2023-24 2022-23 2021-22 2020-21 2019-20
Residential $5,697,161,939 $5,247,758,428 $4,857,419,242 $4,671,664,590 $4,397,530,388 Commercial 1,131,751,802 1,074,201,133 1,027,450,526 1,006,453,482 936,892,089 Industrial 1,298,035,540 1,208,490,671 1,117,152,653 1,037,251,905 964,891,072 Govt. Owned 116,674 22 - - - Recreational 43,240,677 42,678,387 41,518,155 40,966,262 40,263,960 Institutional 88,652,232 114,427,704 94,990,583 89,836,280 76,976,001 Miscellaneous 2,262,303 88 - - - Vacant land 56,048,027 66,945,560 66,349,257 69,851,264 75,744,666 SBE Nonunitary 79,755 213,049 213,049 384,066 257,048 Possessory Int. 27,847,301 27,356,432 14,807,227 12,903,295 13,675,983 Unsecured 311,559,095 292,102,069 288,608,090 294,669,329 294,349,387 Unknown - - - - - 8,656,755,345 8,074,173,543 7,508,508,782 7,223,980,473 6,800,580,594 Homeowner Exemption (1) - - - - - TOTALS: $8,656,755,345 $8,074,173,543 $7,508,508,782 $7,223,980,473 $6,800,580,594 Source: L.A. County Assessor 2014/15-2023/24 Combined Tax Rolls, HdL, Coren & Cone 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.

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 Fiscal Year
City of Gardena
Assessed Value of Property by User Code
Last Ten Fiscal Years
176
CATEGORY 2018-19 2017-18 2016-17 2015-16 2014-15
Residential $4,139,852,554 $3,879,882, 318 $3,623,545,163 $3,441, 407,499 $3,247,456,567 Commercial 888,959,749 831,348,140 791,527,339 750,255,119 715,396,379 Industrial 889,298,836 834,753,358 796,231,706 763,622,835 735,316,073 Govt. Owned - - 5,250,000 - - Recreational 39,491,086 38,342,794 38,760,141 39,348,412 38,689,706 Institutional 74,813,850 78,834,725 69,798,622 65,412,639 62,243,721 Miscellaneous - 451,519 442,667 - - Vacant land 62,990,225 46,086,466 54,308,182 57,298,803 46,471,775 SBE Nonunitary 257,048 257,048 257,048 257,048 3,447,881 Possessory Int. 10,002,510 8,787,949 8,513,799 7,783,045 6,245,168 Unsecured 291,947,663 286,651,391 298,317,633 327,711,675 315,062,605 Unknown - - - 22 - 6,397,613,521 6,005,395,708 5,686,952,300 5,453,097,097 5,170,329,875 Homeowner Exemption (1) - - - - - TOTALS: $6,397,613,521 $6,005,395, 708 $5,686,952,300 $5,453, 097,097 $5,170,329,875 Source: L.A. County Assessor 2014/15-2023/24 Combined Tax Rolls, HdL, Coren & Cone -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.
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 Fiscal Year
City of Gardena
Assessed Value of Property by User Code (Continued)
Last Ten Fiscal Years
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 $3,247 $3,441
$3,623
$3,879 $4,140 $4,398 $4,672 $4,857 $5,248 $5,248
(in Millions)
Fiscal Year
Assessed Value - Taxable Property
Last Ten Fiscal Years
Residential
Commercial
Vacant land
All others
177
Fiscal
Year Residential Commercial Industrial Agriculture Recreational Institutional Govt. Owned Vacant land 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 2022-23 5,247,759 1,074,201 1,208,491 - 42,678 114,428 - 66,946 2023-24 5,697,162 1,131,751 1,298,036 - 43,241 88,652 117 56,048 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 2014/15-2023/24 Combined Tax Rolls, HdL, Coren & Con e
City of Gardena
Assessed Value and Estimated Value of Taxable Property
Last Ten Fiscal Years
(in thousands)
178
Total Factor of
Direct Estimated Taxable
Fiscal SBE Tax Taxable Assessed
Year Nonunitary Possessory Int. Unsecured Misc. TOTAL Rate (1) Value (2) Value 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 2022-23 213 27,356 292,102 - 8,074,174 0.11644 10,768,607 1.33371 2023-24 80 27,847 311,559 2,262 8,656,755 0.11618 11,545,601 1.33371 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 2014/15-2023/24 Combined Tax Rolls, HdL, Coren & Con e
Assessed Value and Estimated Value of Taxable Property (Continued) City of Gardena
Last Ten Fiscal Years
(in thousands)
179
Fiscal No. of No. of No. of
Year Permits Valuation Permits Valuation Permits Valuation 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 2022-23 1,070 30,141,588 122 13,599,849 5 1,862,509 2023-24 856 97,341,915 123 22,062,761 14 1,528,900 Sources: (1) City of Gardena, Community Development Department. (2) City of Gardena-FDIC-Insured Institutions as of 06/30/2024 City of Gardena
Construction and Bank Deposits
(Miscellaneous Information)
Last Ten Fiscal Years
CONSTRUCTION (1)
Residential Commercial Industrial
2,445
3,010
3,152
2,951
3,038
2,723
1,915
2,167 1,700
1,483
0 500
1,000
1,500
2,000
2,500
3,000
3,500
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Fiscal Year
Number of Permits
Last Ten Fiscal Years
180
Bank
Fiscal No. of No. of Deposits (2)
Year Permits Valuation Permits Valuation (in Thousands) 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 2022-23 503 117,273 1,700 45,721,219 2,484,565 2023-24 490 1,943,979 1,483 122,877,556 2,352,713 Sources: (1) City of Gardena, Community Development Department. (2) City of Gardena-FDIC-Insured Institutions as of 06/30/2024 City of Gardena
Construction and Bank Deposits (Continued)
(Miscellaneous Information)
Last Ten Fiscal Years
TotalAll others
CONSTRUCTION (1)
22,727
30,372
34,999
44,483
34,815
44,468
95,620
70,956
45,721
122,878
0 20,000
40,000
60,000
80,000
100,000
120,000
140,000
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 (in Thousands)
Fiscal Year
Permit Valuation
Last Ten Fiscal Years
(in thousands)
181
Los Angeles
Fiscal Los Angeles Unified School
Year General County District
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
2022-23 1.000000 0.000000 0.121070
2023-24 1.000000 0.000000 0.124220
(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 othe r
jurisdictions. All other jurisdictions and the County can levy a tax rate for voter-approved debt.

Source: L.A. County Assessor 2014/15-2023/24 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

0.1242

0.0602

0.0000

0.0035
Tax Rates
Governments
Property Tax Rates -All Overlapping Governments
Fiscal Year ended June 30, 2024

GENERAL
LA
COUNTY
LA USD
LACCD
LACFC
MWD
182
Los Angeles Los Angeles
Community County Metropolitan
Fiscal College Flood Water
Year District Control District Total
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
2022-23 0.024880 0.000000 0.003500 1.149450
2023-24 0.060230 0.000000 0.003500 1.187950
(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 othe r
jurisdictions. All other jurisdictions and the County can levy a tax rate for voter-approved debt.

Source: L.A. County Assessor 2014/15-2023/24 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)

1.1906

1.1690

1.1706

1.1717

1.1729

1.1562

1.1836

1.1605

1.1495

1.1880

1.120

1.130

1.140

1.150

1.160

1.170

1.180

1.190

1.200
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Tax Rates
Fiscal Year
Total Overlapping Governments
Last Ten Fiscal Years
183
Agency 22-23 22-23 21-22 20-21 19-20
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 Service
s 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) Impoun
d 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 % 0.00000 % 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 Distric
t 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): 0.11618 % 0.11644 % 0.11672 % 0.11685 % 0.11711 % 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 2014/15-2023/24 Combined Tax Rolls, HdL, Coren & Cone Ten Fiscal Year Detail of Rates for Largest General Fund Tax Rates Area 00576 (Proposition 13 Rate)

FISCAL YEAR
City of Gardena
Direct and Overlapping Property Tax Rates
(rate per $100 of assessed value)
184
Agency 18-19 17-18 16-17 15-16 14-15
City of Gardena Tax District 1 0.11160 % 0.11160 % 0.11160 % 0.11160 % 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): 0.11737 % 0.11766 % 0.11790 % 0.11809 % 0.11837 % County of Los Angeles (1) 0.00000 % 0.00000 % 0.00000 % 0.00000 % 0.00000 %

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)
City of Gardena
Direct and Overlapping Property Tax Rates (Continued)

0.000%

0.020%

0.040%

0.060%

0.080%

0.100%
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24

0.118%

0.118%

0.118%

0.118%

0.117%

0.117%

0.117%

0.117%

0.116%

0.116%
Fiscal Year
Total Direct Rate
Last Ten Fiscal Years
185
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 $60,988,483 0.70 % MPT of Gardena PHS LP Hospital services 56,763,629 0.66 Terreno 139th LLC Non-residential property owners 41,066,410 0.47 Gardena Owner LP Non-residential property owners 35,789,760 0.41 JSL Gardena I LLC Non-residential property owners 33,481,922 0.39 14215 Normandie LLC Property managemen t 32,931,482 0.38 Showa Marine Inc Wholesale sale s 28,801,525 0.33
Liberty Property LP Non-residential property owners 28,381,819 0.33 Majestic Properties Inc Property managemen t 26,324,728 0.30 Brek Manufacturing Company Manufacturing 25,954,764 0.30 Hitco Technologies Inc. Manufacturing parts 96,752,230 1.87 % Nissin Foods Company Inc. Manufacturing 57,547,694 1.11 GA HC REIT II Gardena CA Hospital LL
C Hospital services 42,190,677 0.82
JSL Gardena I LLC Non-residential property owners 28,416,375 0.55 Majestic Properties Inc. Property managemen t 25,282,264 0.49 Brek Manufacturing Company Manufacturing 24,686,316 0.48 Gramercy Properties LL
C Non-residential property owners 21,917,192 0.42
Target Corporation Retail sales 20,302,729 0.39
WH Gardena Marketplace LLC Shopping Center 19,100,000 0.37 Sams Real Estate Business Trust Non-residential property owner s 18,320,848 0.35 Top Ten Totals (secured and unsecured): 370,484,522 4.28 % 354,516,325 6.86 % All Others (secured) 8,286,270,823 95.72 4,815,813,550 93.14 Total All Assessed Valuation (secured): $8,656,755,345 100.00 % $5,170,329,875 100.00 % Source: L.A. County Assessor 2014/15-2023/24 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 2023-24 Fiscal Year 2014-15
186
Business Type Tax Payers Business Type
1 76 Service Stations 76 Service Stations
2 A&A Chevron Service Stations 76 Service Stations
3 Albertsons Grocery Stores A&A Chevron Service Stations 4 Arco AM PM Service Stations Albertsons Grocery Stores 5 Beacon Roofing Supply Building Materials Beacon Roofing Supply Building Materials 6 Chick Fil A Quick-Service Restaurants Crenshaw Lumber Co Building Materials 7 Crenshaw Lumber Co Building Materials Crenshaw Wholesale Electric Supply Plumbing/Electrical Supplies 8 Crenshaw Wholesale Electric Supply Plumbing/Electrical Supplies Enterprise Rent A Car Transportation/Rentals 9 Enterprise Rent A Car Transportation/Rentals Food 4 Less Grocery Stores 10 Food 4 Less Grocery Stores G & C Equipment Finders Corp Contractors 11 G & C Equipment Finders Corp Contractors Gardena Blue Water Service Stations 12 Gardena Honda New Motor Vehicle Dealers Gardena Honda New Motor Vehicle Dealers 13 Honda Lease Trust Auto Lease Gardena Nissan New Motor Vehicle Dealers 14 In N Out Burger Quick-Service Restaurants 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 Nissan of Gardena New Motor Vehicle Dealers Nader's Furniture Home Furnishings 18 Raising Cane's Quick-Service Restaurants New York Times Sales Light Industrial/Printers 19 Ralphs Grocery Stores Sam's Club w/ Fuel Discount Dept Stores 20 Sam's Club w/ Fuel Discount Dept Stores Smardan Hatcher Co. Plumbing/Electrical Supplies 21 Smardan Hatcher Co. Plumbing/Electrical Supplies Target Discount Dept Stores 22 Target Discount Dept Stores United Oil Company Service Stations 23 Valero Service Stations 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, CDTFA, SCO, HdL Companie
s
(1) Period: from January to December
Calendar Year 2014
Tax Payers
Calendar Year 2023
City of Gardena
Top 25 Sales Tax Producers (1)
(Miscellaneous Information)
Previous Calendar Year and Ten Years Ago
of the total sales tax collected. of the total sales tax collected. -Account for 56.52% -Account for 56.25%
187

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 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% 2022-23 9,123,832 9,071,698 99.43% 52,134 9,123,832 100.00% 2023-24 9,771,544 9,717,972 99.45% 53,572 9,771,544 100.00% 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
10,000,000
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 9,771,544
9,771,544
Fiscal Year
Tax Collections and Delinquency
Last Ten Fiscal Years
Levies
Collections
188
Percent of
Fiscal Card Club General Fund General Fund
Year Revenue (1) Gross Revenue Revenue
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%
2022-23 8,633,145 83,114,369 10.39%
2023-24 8,910,456 86,997,951 10.24%
(1) Two 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

9.52 9.06

8.98 8.07

8.10 4.72

4.15 10.50

8.63 8.91
0 2
4 6
8 10
12 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Fiscal Year
Card Club Gross Revenue
Last Ten Fiscal Years
in Millions
189
2024 2023 2022 2021 2020
Utility Users Tax Electric 3,311,316$ 3,072,555 $ 2,584,392 $ 2,331,492 $ 2,110,227 $ Utility Users Tax Gas 793,877 1,177,694 837,674 648,472 616,341 Utility Users Tax Electric Service Provider 429,601 324,189 323,978 199,496 217,700 Utility Users Tax Gas-Non Core 112,050 127,587 111,839 88,421 91,533 UUT-Mobile/Cellular Telephones 235,814 240,469 216,708 181,548 313,603 UUT-Long Distance Telephone/Non Cellular 371,199 439,504 417,966 458,602 490,588 Utility Users Tax Water 1,097,773 898,171 930,300 947,276 902,866 UUT-Prepaid Mobile Telephone 52,680 37,681 58,537 115,493 58,372 TOTAL 6,404,308$ 6,317,851 $ 5,481,395 $ 4,970,799 $ 4,801,230 $ 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
190
2023 2022 2021 2020 2019
Apparel Stores 13,491$ 13,224 $ 13,671 $ 9,294 $ 12,209 $ General Merchandise 161,461 167,193 152,741 127,495 125,790 Food Stores 49,468 48,854 46,211 47,793 43,373 Eating and Drinking Places 244,557 237,796 208,331 169,453 194,542 Building Materials 230,320 269,392 239,752 167,892 151,441 Auto Dealers and Supplies 220,374 163,647 161,756 135,836 152,677 Service Stations 104,259 117,176 92,427 68,200 93,644 Other Retail Stores 80,850 85,265 95,811 89,810 87,059 All Other Outlets 454,835 468,004 151,132 150,482 192,835 TOTAL 1,559,615$ 1,570,551 $ 1,161,832 $ 966,255 $ 1,053,570 $ 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
Calendar Years 2019 through 2023
(in thousands)
191
Certificates of Revenue Pension Leases Subscription Direct Fiscal Year Population (1) Participation (2) Bonds
Obligation
Bonds Payable
Loan
Payable Liabilities
Purchase
Lease Other Total
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 3,632,103 755,138 565,000 43,361 113,417,220 2022-23 59,809 5,940,000 24,108,714 73,832,926 459,635 3,718,327 1,032,161 285,000 29,065 109,405,828 2023-24 60,028 5,275,000 23,355,944 70,547,863 544,477 3,804,551 617,471 - 14,769 104,160,075 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) Assessed value has been used because the actual value of taxable property is not readily available in the State of California (4) 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
$434
$424
$409
$396
$385 $371
$2,049
$2,258
$2,182 $2,069
0 500
1,000
1,500
2,000
2,500
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Fiscal Year
Outstanding Debt per Capita
Last Ten Fiscal Years
192
Percent of Average Percent
Pension Taxable Taxable Deb t Capita of Debt by
Fiscal Year
Obligation
Bonds Lease Payable
Subscription
Liabilities Total
Assessed Value
(3)
Assessed
Value per Capita
Personal
Income (4)
Personal
Income
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 21,592,275 158,923 205,064 21,956,262 7,508,508,782 1.80% 2,258 28,211 8.00% 2022-23 20,787,074 13,353 279,567 21,079,994 8,074,173,543 1.62% 2,182 30,493 7.15% 2023-24 19,862,137 17,884 154,290 20,034,311 8,656,755,345 1.43% 2,069 33,812 6.12% 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) Assessed value has been used because the actual value of taxable property is not readily available in the State of California (4) 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

BUSINESS-TYPE ACTIVITIES
City of Gardena
Ratio of Outstanding Debt by Type (Continued)
Last Ten Fiscal Years
193
(1)
Net
Fiscal Operating Available Percent
Year Revenue Expenses Revenue Principal Interest Coverage 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 2022-23 84,162,512 75,849,689 8,312,823 120,000 66,575 44.55 2023-24 86,997,951 77,519,565 9,478,386 125,000 60,575 51.08 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
194
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 2014-15 60,414 12,370,000 600,000 - - 11,770,000 4,957,766,359 0.24% 195 2015-16 60,785 11,770,000 640,000 - - 11,130,000 5,170,329,875 0.22% 183 2016-17 60,721 9,170,000 460,000 - - 8,710,000 5,453,097,097 0.16% 143 2017-18 61,246 8,710,000 490,000 - - 8,220,000 5,686,952,300 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 2022-23 59,809 5,940,000 665,000 94,620,000 4,210,000 95,685,000 8,074,173,543 1.19% 1,600 2023-24 60,028 5,275,000 705,000 90,410,000 4,800,000 90,180,000 8,656,755,345 1.04% 1,502 Source: (1) State of California, Finance Department.
(2) This is the amount for the COP debt service principal payments in the current fiscal year. (3) This is the amount for the POB debt service principal payments in the current fiscal year.

OUTSTANDING GENERAL BONDED DEBT
City of Gardena
Ratio of General Bonded Debt Outstanding
Last Ten Fiscal Years
$195 $183 $143 $134 $126
$117
$1,738 $1,677
$1,600
$1,502
0 200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Fiscal Year
General Bonded Debt Outstanding per Capita
Last Ten Fiscal Years
195
2023-24 Assessed Valuation: $8,656,755,345
Percent City's Share
Total Debt Applicable of Debt
Overlapping Tax and Assessment Debt: 06/30/2024 To City (1) 06/30/2024 Metropolitan Water District 18,210,000$ 0.224 % 40,790 $ Los Angeles Community College District 5,155,845,000 0.762 % 39,287,539 Los Angeles Unified School District 10,723,385,000 0.931 % 99,834,714 California Statewide Communities Development Authority 1915 Act Bonds 6,239,000 100.000 % 6,239,000 TOTAL GROSS OVERLAPPING TAX AND ASSESSMENT DEBT 145,402,043$ Less: Los Angeles Unified School District supported general obligation bonds 2,788,126 TOTAL NET OVERLAPPING TAX AND ASSESSMENT DEBT 142,613,917$ Direct and Overlapping General Fund Debt
Los Angeles County General Fund Obligations 2,479,229,730$ 0.432 % 10,710,272$ Los Angeles County Superintendent of Schools Certificates of Participation 2,857,300 0.432 % 12,344 Los Angeles Unified School District Certificates of Participation 471,590,000 0.931 % 4,390,503 City of Gardena General Fund Obligations 27,000,000 100.000 % 27,000,000 City of Gardena Pension Obligation Bonds 70,547,863 100.000 % 70,547,863 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT 112,660,982$ TOTAL DIRECT DEBT 97,547,863$
TOTAL GROSS OVERLAPPING DEBT 160,515,162$
TOTAL NET OVERLAPPING DEBT 157,727,036$
GROSS COMBINED TOTAL DEBT 258,063,025$ (2)
NET COMBINED TOTAL DEBT 275,137,036$
Ratios to 2023-24 Assessed Valuation:

Direct Debt ($97,547,863)….......................................................................... 1.13% Total Gross Overlapping Tax and Assessment Debt….................................. 1.68% Total Net Overlapping Tax and Assessment Debt…..................................... .1.65%
Gross Combined Total Debt…....................................................................... 3.21% Net Combined Total Debt….......................................................................... . 3.18%
City of Gardena
Direct and Overlapping Bonded Debt
June 30, 2024
(1) The percentage of overlapping debt applicable to the City is estimated using taxable property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the City divided by the district's total taxable assessed value. (2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue, non-bonded capital lease obligations, and sales tax revenue bonds. 196
23-24 22-23 21-22 20-21 19-20
Assessed valuation $8,656,755,345 $8,074,173,543 $7,508,508,782 $7,223,980,473 $6,800,580,594 Conversion percentage 25% 25% 25% 25% 25%
Adjusted assessed valuation 2,164,188,836 2,018,543,386 1,877,127,196 1,805,995,118 1,700,145,149 Debt limit percentage 15% 15% 15% 15% 15%
Debt limit $324,628,325 $302,781,508 $281,569,079 $270,899,268 $255,021,772 Total net debt applicable to limit:

General obligation bonds - - - - - Legal debt margin $324,628,325 $302,781,508 $281,569,079 $270,899,268 $255,021,772 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
197
18-19 17-18 16-17 15-16 14-15
Assessed valuation $6,397,613,521 $6,005, 395,708 $5,686,952,300 $5, 453,097,097 $5,170,329,875 Conversion percentage 25% 25% 25% 25% 25%
Adjusted assessed valuation 1,599,403, 380 1,501,348,927 1,421,738,075 1,363,274,274 1,292,582,469 Debt limit percentage 15% 15% 15% 15% 15%
Debt limit $239,910,507 $225,202, 339 $213,260,711 $204, 491,141 $193,887,370 Total net debt applicable to limit:

General obligation bonds - - - - - Legal debt margin $239,910,507 $225,202,339 $213,260,711 $204,491,141 $193,887,370 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 yea r
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
350
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 $194
$204
$213
$225
$240
$255
$271
$282
$303
$325
(in Million)
Fiscal Year
Legal Debt Margin
Last Ten Fiscal Years
198

YEAR PRINCIPAL INTEREST TOTAL PRINCIPAL INTEREST TOTAL PRINCIPAL INTEREST TOTAL 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 5,940,000$ 1,492,282 $ 7,432,282 $ 8,750,000 $ 4,282,812 $ 13,032,812 $ 1,195,000 $ 290,156 $ 1,485,156 $ City of Gardena
Debt Service Payment Schedule
2006 A REF COPS 2014 TAXABLE LEASE BONDS 2007A REV REF BONDS 199

YEAR PRINCIPAL INTEREST TOTAL PRINCIPAL INTEREST TOTAL PRINCIPAL INTEREST TOTAL 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 285,000$ 2,950 $ 287,950$ 94,620,000 $ 29,541,483 $ 124,161,483 $ 12,440,000 $ 4,490,000 $ 16,930,000 $ City of Gardena
Debt Service Payment Schedule (Continued)
2017 DIRECT LEASE 20 TAXABLE PENSION OBLIGATION BOND 2021 LEASE REVENUE BONDS 200

YEAR PRINCIPAL INTEREST TOTAL
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 123,230,000$ 40,099,683 $ 163,329,683 $
City of Gardena
Debt Service Payment Schedule (Continued)

ANNUAL BOND OBLIGATIONS
201
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) 2015 21,649 60,414 0.87% 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% 2023 22,933 59,809 -0.23% 9,761,210 -1.01% 1,823,814 30,493 563, 083 27,900 4.70% 2024 23,006 60,028 0.37% 9,824,091 0.64% 2, 028,673 33,812 557,352 28,400 6.10% NOTES:
(1) State of California, Finance Department.
(2) Income data was provided by HDL Coren & Cone using City of Gardena Average per Capita Personal Income. (3) Student Enrollment is from LAUSD website. LAUSD does not have breakdown per City count. (4) Employment and Unemployment rates are provided by the EDD's Labor Market Information Division.

City of Gardena
Demographic and Economic Statistics
Last Ten Calendar Years
60,414
60,785 60,721
61,246
61,042
60,937
60,344
59,947 59,809
60,028
58,500
59,000
59,500
60,000
60,500
61,000
61,500
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Calendar Year
City of Gardena Population
Last Ten Calendar Years
202
2020* 2015
Percent of Percent of
Number of Total Number o f Total
Employer Business Type Employees Employmen t Employees Employmen t 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%
Hustler Casino Casino 744 2.69%
Gardena Memorial Hospita
l Hospital services 740 2.67%
United Parcel Service Inc. Deliver y 348 1.26%
Hitco Carbon Composites, Inc. Manufacturing parts 486 1.75% Normandie Club, LP Casino 430 1.55%
Southwest Offset Printing Book binding and printing 365 1.32% Targe
t Retail 217 0.78%
Ramona's Mexican Food Food 150 0.54%
Sam's Club Retail 150 0.54%
Gardena Honda Auto Sales 122 0.44%
Total top ten employers 4,037 3,752
Total City Employment1
27,900 27,700
*Used 2020 employment data as 2024 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
203
2024 2023 2022 2021 2020
Federal Unemployment Rate 4.0% 3.8% 3.5% 4.8% 8.4%
State Unemployment Rate 5.2 4.6 3.9 6.4 10.8
County Unemployment Rate 6.0 5.0 4.8 9.7 15.1
City Unemployment Rate 6.1 4.7 4.8 9.8 15.2
Source: State of California Employment Development Department; Los Angeles-Long Beach Metropolitan Statistical Area and United States Bureau of Labor Statistics.

Employment
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 2020 through 2024.

City of Gardena
Unemployment Rates
Last Five Calendar Years
204
Function 2023-24 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 General government 142 130 120 115 151 181 209 186 181 181 Public safety 122 125 124 126 149 140 142 154 160 157
Public works 46 45 46 44 56 47 31 51 50 50
Community development 26 21 15 12 15 18 15 19 18 17
Transit - Bus line 141 143 141 136 165 148 140 140 144 147 Total 477 464 446 433 536 534 537 550 553 552
Source: City of Gardena, Administrative Services Department - Finance Divisio n
Fiscal Year
City of Gardena
Full-Time and Part-Time City Employees
by Function
Last Ten Fiscal Years
552
553
550
537
534
536
433
446
464
477
0 100
200
300
400
500
600
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Fiscal Year
City of Gardena Employment
Last Ten Fiscal Years
205
Name of Union
Number of
Employees
Represented as of
Number of
Employees
Represented as of
Number of
Employees
Represented as of
Number of
Employees
Represented as of
Expiration of
Contract
Gardena Municipal Employees Association 239 239 224 220 6/30/2025 Gardena Management Employees Organization 17 19 19 21 6/30/2025 Gardena Police Officers Association 84 89 84 86 7/31/2024 Gardena Police Executive Association 9666 N / A
349 353 333 333
Source: City of Gardena
City of Gardena
Employee Union Representation
206
Function 2023-24 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 Police:

Arrests 1,591 1,921 1,674 1,547 1,761 2,183 2,901 2,642 2,423 4,499 Number of parking citations issued 19,479 17,942 20,293 30,000 27,568 29,868 29,254 23,145 22,665 11,203 Public works:

Street resurfacing (miles) 4.29 4.17 3.58 2.25 5.68 19.06 0.49 4.52 2.95 7.00 Traffic lights and signals 91 91 91 91 91 91 91 91 90 89 Parks and recreation:

Number of recreation classes 151 216 272 0 432 1,374 1,226 1,410 1,466 1,150 Number of facility rentals 9,123 2,717 584 0 53 1,977 1,112 1,222 1,221 1,164 Transit:

Number of customers served
(1) 2,180,251 1,910,285 1,606,377 1,203,880 2,406,910 2,943,363 3,110,354 3,094,180 3,610,718 3,687,038 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
207
Function 2023-24 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 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 25.0 25.0 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 3,250 3,250 3,337 3,337 3,392 3,327 3,321 3,350 3,319 -City maintenance 194 194 194 193 193 194 191 198 385 197 Traffic signals 69 69 69 69 69 69 69 69 70 69
Traffic signals (shared) 22 22 22 22 22 22 22 22 23 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 487 492 492 492 492 492 492 595 595 595
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
208
209

City of Gardena

Annual Comprehensive Financial Report
For the Year Ended June 30, 2024

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REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND

OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN

ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

Independent Auditors’ Report

To the Honorable Mayor and the Members of the City Council of the City of 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, 2024, and the related not es to the basic financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated December 10, 2024.

Report on Internal Control Over Financial Reporting

In planning and performing our audit of the financial stat ements, we considered the C ity’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 expressi ng our opinions on the financial stat ements, 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 combinatio n 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 id entify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that were not identified.

Report on Compliance and Other Matters

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

438 Old Newport Blvd – Newport Beach, CA 92663
Phone (949) 346-2900 – www.gruberlopezinc.com
210

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