Gardena City Council
December 9, 2025

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 financial statements themselves, a nd 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 other 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 inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the 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 re port dated December 4, 2025, 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 4, 2025

4 City of Gardena

Annual Comprehensive Financial Report
For the Year Ended June 30, 2025

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

5 As management of the City of Gardena (City), California, we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2025. 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 2024-2025 fiscal year by $48,067,647 , 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 Postemployment benefits other than pensions and lowering of Long- Term Liabilities -Due in more than one year and higher fund balances for various grants received during the fiscal year. The Net Pension Liabilit ies and Other post-employment benefits (OPEB) were included within the government-wide fi nancial statements for both governmental and business-type financial reporting. At close of 2024-2025 fiscal year, the City’s Net Pension Liabilities were $25,370,960 and $1,501,014 for governmental and business-type activities for a total of $26,871,974. The City’s Other post-employment benefit liabilities were $60,080,037 and $9,753,373 for governmental and business-type activities for a total of $69,833,410. The Long-Term Liabilities were $112,344,803 and $19,923,080 for governmental and business-type activities for a total of $132,267,883 of which $89,355,440 is for the 2020 Taxable Pension Obligation Bonds; $70,547,863 for governmental and $18,807,577 for business-type activities.

 The City’s total net position increased by $25,301,425 in 2024-2025. Net position of governmental activities increased by $29,637,635 while net positi on of business type activities decreased by $4,336,210. The increase in governmental activities was due primarily to 1) Additional Tax Revenue compared to the prior year in the amount of ar ound $4.1 million as the economy continued to improve. 2) Additional grants rece ived during the fiscal year. 3) Investment income increased by $3 million due to active investment management and higher interest rates. 4) Overall 8% decreased in expenses compared to prior year.

 At the close of the 2024-2025 fiscal year, the City ’s governmental funds reported combined fund balances of $104,391,859, an increase of $8,817,918 or 9.2% in comparison to the prior year. General Fund increased by $7,432,436 or 12.5%. The increase is due primarily to increases in tax revenue, which was higher than prior year by about $1.2 Million. The City’s Use of Money and Property, primarily its return on investments increase by $1.4 million compared to the prior year because of higher investment returns and a gr eater fair market value on its investments. The City’s General Fund expenditures were approximately $5.5 millio n higher compared to the previous year’s amount due to additional CalPERS unfunded accr ued liability (UAL) payment and cost of living adjustments. Nonmajor Governmental Funds increased by $5,411,698 or 35%, as a result of the City receiving additional grants for various projects. City Debt Service fund balance decreased by $4,087,650 due to the draw down of reserve for the fiscal year.

 At the end of the 2024-2025 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 $67,049,419 or approximately 85.3% of total General Fund expenditures.

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

6  The City’s long-term liabilities decreased by $6,374, 641 or 4.6% compared to prior year based on the City paying the annual debt service principa l payments for the applicable debts during the fiscal year.

Overview of the Financial Statements

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

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

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

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

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

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

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

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

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.

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

7 Overview of the Financial Statements (Continued)

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

The City maintains thirteen (13) individual governme ntal funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund, the Economic Development Grants Special Revenue Fund, 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 35-41 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 47-97 of this report.

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

8 Overview of the Financial Statements (Continued)

Other Information. In addition to the basic financial statements and accompanying notes, this report also presents required supplementary information concerning the City’s 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 Grants 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 req uired supplementary information.

Combining and individual fund statements and schedules can be found on pages 120-153 of this report.

Government-wide Overall Financial Analysis

As noted earlier, net position, over time, may serve as a useful indicator of a government’s financial position. In the case of the City, assets and defe rred outflows of resources exceeded liabilities and deferred inflows of resources by $48,067,647 at the close of the 2024-2025 fiscal year.

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

9 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 liabilities - Due in more than one year, which decreased to $132,545,895 for the fiscal year 2024-2025, a decrease of $6,374,641 or 4.6%, mainly from the debt service payment. The other additional long-term liabilitie s are Other Post-Employment Benefits (OPEB) of $69,833,410, a decrease of $2,148,775 or 3% compared to the prior year; this decrease is related to the increase in contributions and 115 OPEB trust asset valu e, which helped reduce the estimated liabilities.

These two liabilities total $202,379,305, or 88%, of the total liability balance of $229,251,279 at June 30, 2025.

The remaining liability is the pension liability, which decreased by 9% or $2,738,757.

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 $ (134,428,294) 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 2024-2025 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 $25,310,425 from the prior fiscal year. The reasons for this overall increase are discussed in the below sectio ns for governmental activities and business-type activities.

Governmental Activities. During 2024-2025 fiscal year, net position for governmental activities increased by $29,637,635 from the prior fisc al year for an ending balance of $1,140,782. The increase in the overall net position was primarily related to: 1) City received additional grants for various projects or $3.8 million increase in ; 2) Other taxes includ ing UUT and TOT, increased by $4.1 million or 6% from prior year; 3) Expenses decreased by 8% or $7.4 million mainly due to large expenses from last fiscal year; 4) Investment income and miscellaneous revenue increased by 89% or $3.3 million from active investment management strategy and higher interest yield. The Governmental activities total re venues increased by $6,339,589 or

5.7% compared to fiscal year 2023-2024.

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

10 Government-wide Overall Financial Analysis (Continued)

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

11 Government-wide Overall Financial Analysis (Continued)

Business-type Activities . In the 2024-2025 fiscal year, the City’s business-type activities decreased the net position by $4,336,210 compared to the prior year balance, for the fiscal year ended June 30, 2025. Business- type activities revenue decreased by $22,138,214 or approximately 38% compared to the prior year for a total of $36,484,580 in revenues at year-end. In comparison to the prior fiscal year, the charges for services increased by $88,670 or 2% with charges for services remaining constant with prior years. Operating grants and contributions increased by $5,168,980 or 22.6% comp ared to the prior fiscal year. Operation costs increased by $6,923,734 or 20.5%, which was largely due to the cost-of-living expenses paid to employees and higher operating costs. Capital grants and contri butions decreased by $27,8 35,710 or approximately 91% primarily due to the major acquisition in prior fiscal year, which includes the 21 CNG buses and 7 zero-emission buses. Investment income and miscell aneous increased by $439,846 or 70.4% compared to the prior year due to the City expl oring additional investment option s within its investment policy and earning significantly higher interest rates.

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, 2025, the City’s governmental funds re ported combined fund balances of $104,391,859 an increase of $8,817,918 or 9% in comparison with the prior year. Approximately 0.3% of this amount or $298,796 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 $408,842; 2) restricted for purposes $36,989,142 ; 3) committed for purposes $36,418,505 ; or 4) assigned for purposes $30,276,574.

The General Fund is the chief operating fund of th e City. At the end of the 2024-2025 fiscal year, the unassigned fund balance of the General Fund was $30 0,000, while the total fund balance increased from $59,616,983 to $67,049,419, an increase of $7,432,436 or a 12.5% 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 85.3% of that same amount.

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

12 Financial Analysis of Governmental Funds (Continued)

The fund balance of the City’s General Fund increased by $7,432,436 during the 2024-2025 fiscal year. The Taxes make up 84.4% of the General Fund total revenu es, which represents an increase of $1.2 million or approximately 2% from prior year. The increase is mainly from Motor Vehicle In-Lieu increased and property taxes which from increased assessed valuat ion. The use of money and property also increased by $1.4 million or 70% due to active investment management and higher interest rates.

The Economic Development Grants Special Revenue Fu nd, a major fund, had a decrease in fund balance of $455,444 during the fiscal year pr imarily due to receiving additio nal expenditures for the various development projects within the fiscal year.

The Debt Service Fund, a major fund, had a decrease of $2,050,418 in fund balance during the fiscal year, due to drawdown for project . 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 building 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.

General Fund Budgetary Highlights

The final budget of $77,953,104 for revenue was amended with a decrease of $5,502,894 from the original adopted budget. Actual revenue compared to the fi nal budget was up by $7.6 million or 9.8% compared to the final budget. This is primarily a result of an increase in tax revenue compared to the budget of about $4.3 million. The other major contributi on is the increase in the use of money and property of $3 million over the final budgeted amount due to active investment activities and higher interest rates. A detailed budgetary comparison schedule for the year ended June 30, 2025, is presented as required supplementary information following the notes to the financial statements.

The final budget for combined General Fund expendit ures was $76,812,790, which is $3.5 million lower than the original budget due to the cancellation of some capital projects. The actual expenditure total was less than the final budget by $1,828,004 or 2.3%, which was primarily due to salary savings from vacancies in various departments. A detailed budgetary comparis on schedule for the year ended June 30, 2025, 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, 2025, amounts to $161,960,031 (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 $6,275,752 or 4%, primarily due to the completion of GTrans CNG Station Facility Project of $5,884,511.

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

13 Major capital asset events
during the 2024-2025 fiscal year included the following:
 Completion of the GTrans CNG Station Facility Project  Completion of the Demolition of the Community Building on Rosecrans  Completion of Marked Crosswalk on Vermont and 133rd Street  Completion of Pedestrian Safety Improvement FY2023-24 Project  Completion of Nakaoka Community Center HVAC Upgrade

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

Long-Term Liabilities. At the end of the 2024-2025 fiscal year, the City had total bonded debt outstanding of $99,579,479. The City’s long-term liabilities, ex cluding compensated absenc es and claim payables, decreased by $5,983,018 or approximately 5% compared to prior year based on the City paying the annual debt service principal payments for the applicable debts below during the fiscal year.

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

14 The City maintains an existing lease ra ting 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, 2025. 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 $70.7 million budgeted for the budget cycle.

The City adopted the biennial budget for Fiscal Year 2024-2025 & 2025-2026 budget on June 25, 2024. The Fiscal Year 2025-2026 budget was amended on June 24, 2025, with the total General Fund revenue of $87,404,784 with expenditures of $87,331,738 for a surplus of $73,046.

In 2025-2026 the Top 5 Amended Budgeted General Fu nd revenue sources, which make up 74% of the City’s General Fund, include: 1) Sales and Use Ta x - $28 million (32%), 2) Property Taxes - $11.1 million (13%), 3) Card Club Gross Revenue Fees - $9.2 million (10%), 4) Vehicle License Fees - $9.4 million (11%), and 5) Utility Users Tax - $7.2 million (8%).

The Amended General Fund expenditures were $87,331,738, with the Police Department making up $38.4 million or 44%, Non-Departmental (including the Fire Department and our South Bay Regional Public Communications Authority) $16.6 million or 19%, Transf ers Out at $8.1 million or 9%, Public Works at $7.6 million or 9%, Recreation and Human Services at $6.7 million or 8%, Elected and City Managers Offices at $2.9 million or 3.3%, Community Developm ent Department at $3.6 million or 4.1% and the Administrative Services Department at $3.4 million or 3.9%.

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

15 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 resurfaces 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 $8-$10 million per fiscal year. In October 2025, the court dismissed the case, but the plaintiff is appealing.

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 wi th CalPERS. The City’s net total unfunded pension liability was $26.8 million as of June 30, 2025, per the CalPERS actuaria l valuation. The City has been proactive and taken steps to reduce its unfunded pe nsion 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.

One of the immediate financial challenges confronting the City arose in July 2023, when the Los Angeles County Fire Department requested an amendment to the existing contract to include an annual cost share of $1.7 million. This change would add $1.7 million to the City’s General Fund expenditures, along with a recurring 5%–6% increase each year. The City is ac tively negotiating with the Fire Department and reviewing all possible options to address this issue.

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, 2025

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17 BASIC FINANCIAL STATEMENTS
18 City of Gardena

Annual Comprehensive Financial Report
For the Year Ended June 30, 2025

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19 GOVERNMENT-WIDE

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

Cash and investments 109,889,991 $ 19,646,421 $ 129,536,412 $ Receivable, net 8,504,392 580,357 9,084,749 Due from other governments 4,609,252 2,804,751 7,414,003 Internal balances 9,987,259 (9,987,259) - Prepaid items 385,489 43,024 428,513 Inventories 52,628
838,887 891,515
Total current assets 133,429,011 13,926,181 147,355,192 Noncurrent assets:

Restricted cash and investments:

Cash with fiscal agent 15,092,284 - 15,092,284 Loans receivable 1,786,704 - 1,786,704 Capital assets:

Capital assets, not being depreciated 34,433,613 14,614,227 49,047,840 Capital assets, being depreciated 44,428,420 66,904,141 111,332,561 Intangible asset, being amortized 1,141,302
438,328 1,579,630
Total capital assets 80,003,335 81,956,696 161,960,031 Total noncurrent assets 96,882,323 81,956,696 178,839,019 Total assets 230,311,334 95,882,877 326,194,211

DEFERRED OUTFLOWS OF RESOURCES
Pension related deferred outflows of resources 19,916,992 1,021,412 20,938,404 OPEB related deferred outflows of resources 11,371,679 3,252,195 14,623,874 Total deferred outflows of resources 31,288,671 4,273,607 35,562,278 Primary Government
City of Gardena
Statement of Net Position
June 30, 2025
See accompanying notes to the basic financial statements. 20 Governmental Business-Type
Activities Activities Total

LIABILITIES
Current liabilities:

Accounts payable 7,873,849 1,191,221 9,065,070 Accrued liabilities 114,633 179,302 293,935 Salaries and benefits payable 891,735 344,691 1,236,426 Due to other governments 1,092,823 - 1,092,823 Retention payable 960,711 - 960,711 Deposits payable 4,520,483 - 4,520,483 Unearned revenue 6,452,611 17,745,531 24,198,142 Accrued interest payable 750,109 12,649 762,758 Compensated absences - due within one year 2,084,224 502,994 2,587,218 Claims payable - due within one year 3,936,012 - 3,936,012 Long-term debt - due within one year 5,974,895
1,243,984 7,218,879
Total current liabilities 34,652,085 21,220,372 55,872,457 Noncurrent liabilities:

Compensated absences - due in more than one year 9,726,955 2,011,974 11,738,929 Claims payable - due in more than one year 13,807,427 - 13,807,427 Long-term debt - due in more than one year 89,088,433 17,911,106 106,999,539 Aggregate net pension liabilities 25,370,960 1,501,014 26,871,974 Aggregate net OPEB liabilities 60,080,037 9,753,373 69,833,410 Total noncurrent liabilities 198,073,812 31,177,467 229,251,279 Total liabilities 232,725,897 52,397,839 285,123,736

DEFERRED INFLOWS OF RESOURCES
Pension related deferred inflows of resources 10,424,601 43,869 10,468,470 OPEB related deferred inflows of resources 17,308,725 787,911 18,096,636 Total deferred inflows of resources 27,733,326 831,780 28,565,106

NET POSITION
Net investment in capital assets 64,707,716 80,417,960 145,125,676 Restricted for:

Law enforcement 3,425,402 - 3,425,402 Local street improvements 10,691,870 - 10,691,870 Economic development 6,033,175 - 6,033,175 Capital projects 6,817,525 - 6,817,525 Human services 62,900 - 62,900 Debt service 10,339,393
- 10,339,393
Total restricted 37,370,265 - 37,370,265 Unrestricted (Deficit) (100,937,199) (33,491,095) (134,428,294) Total net position 1,140,782$ 46,926,865 $ 48,067,647 $ Primary Government
City of Gardena
Statement of Net Position (Continued)
June 30, 2025
See accompanying notes to the basic financial statements. 21 Operating Capital Total
Charges for Grants and Grants and Program
Expenses Services Contributions Contributions Revenue
Primary Government:

Governmental activities:

General government 9,107,752 $ 10,706,359 $ 1,685,513 $ - $ 12,391,872$ Public safety 56,285,591 1,329,081 2,830,299 327,203 4,486,583 Public works 8,013,865 312,825 4,714,940 2,600,830 7,628,595 Recreation and human services 3,220,079 523,835 871,016 - 1,394,851 Community development 6,125,888 2,232,223 1,764,727 155,421 4,152,371 Interest 3,715,867 - - - - Total governmental activities 86,469,042 15,104,323 11,866,495 3,083,454 30,054,272 Business-type activities:

GTrans 38,864,525 2,047,491 28,022,172 2,815,854 32,885,517 Sewer 1,756,000 2,534,274 - - 2,534,274 Total business-type activities 40,620,525 4,581,765 28,022,172 2,815,854 35,419,791 Total primary government 127,089,567$ 19,686,088 $ 39,888,667 $ 5,899,308 $ 65,474,063 $ City of Gardena
Statement of Activities
For the Year Ended June 30, 2025
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 3,284,120 $ - $ 3,284,120$ Public safety (51,799,008) - (51,799,008) Public works (385,270) - (385,270) Recreation and human services (1,825,228) - (1,825,228) Community development (1,973,517) - (1,973,517) Interest and fiscal charges (3,715,867) - (3,715,867) Total governmental activities (56,414,770) - (56,414,770) Business-type activities:

GTrans - (5,979,008) (5,979,008) Sewer - 778,274 778,274
Total business-type activities - (5,200,734) (5,200,734) Total primary government (56,414,770) (5,200,734) (61,615,504) General revenues:

Property taxes 10,874,154 - 10,874,154 Sales taxes 31,656,201 - 31,656,201 Business license 3,153,491 - 3,153,491 Utility users taxes 6,829,968 - 6,829,968 Franchise taxes 3,572,251 - 3,572,251 Card club 8,808,950 - 8,808,950 Other taxes 4,901,510 - 4,901,510 Total taxes 69,796,525 - 69,796,525 Vehicle license - unrestricted 9,142,820 - 9,142,820 Investment income 5,315,119 1,064,789 6,379,908 Miscellaneous 1,597,676 - 1,597,676 Total general revenues 85,852,140 1,064,789 86,916,929 Transfers 200,265 (200,265) -
Change in net position 29,637,635 (4,336,210) 25,301,425 Net position (deficit) - beginning of year (28,496,853) 51,263,075 22,766,222 Net position (deficit) - end of year 1,140,782 $ 46,926,865 $ 48,067,647 $ Functions/Programs
City of Gardena
Statement of Activities (Continued)
For the Year Ended June 30, 2025
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, 2025

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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, 2025

(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 62,061,214 $ 10,719,086 $ 5,682,204 $ - $ Cash and investments with fiscal agents - - - 15,092,284 Receivables:

Accounts 1,815,721 - - - Taxes 5,838,983 - - - Interest 63,144 - - - Employees 42,979 - -
Loans - 1,786,704 - - Inventories 52,628 - - - Prepaid items and deposits 303,605 - - 2,297 Due from other governments - - - - Due from other funds 4,771,460 - - - Total assets 74,949,734$ 12,505,790 $ 5,682,204 $ 15,094,581 $ Liabilities:

Accounts payable 2,350,169 $ 20,004 $ 4,422,028$ - $ Accrued liabilities 65,472 - - - Salaries and benefits payable 872,373 - - - Due to other funds - - - 4,754,095 Due to other governments - - - - Unearned revenues - 6,452,611 - - Retention payable - - 958,283 - Deposits payable 4,520,483 - - - Total liabilities 7,808,497 6,472,615 5,380,311 4,754,095 Deferred Inflows of Resources:

Unavailable revenue 91,818 - - - Total deferred inflows of resources 91,818 - - - Fund Balances:

Nonspendable 356,233 - - 2,297 Restricted - 6,033,175 - 10,339,393 Committed 36,116,612 - 301,893 - Assigned 30,276,574 - - - Unassigned 300,000 - - (1,204) Total fund balances 67,049,419 6,033,175 301,893 10,340,486 Total liabilities, deferred inflows
of resources and fund balances 74,949,734$
12,505,790 $ 5,682,204 $ 15,094,581 $
Major Funds
June 30, 2025
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 17,422,578 $ 95,885,082 $
Cash and investments with fiscal agents - 15,092,284 Receivables:

Accounts 265,595 2,081,316
Taxes 451,961 6,290,944
Interest - 63,144
Employees - 42,979
Loans - 1,786,704
Inventories - 52,628
Prepaid items and deposits 50,312 356,214
Due from other governments 4,609,252 4,609,252
Due from other funds - 4,771,460
Total assets 22,799,698$ 131,032,007 $
Liabilities:

Accounts payable 602,224 $ 7,394,425 $
Accrued liabilities - 65,472
Salaries and benefits payable 11,956 884,329 Due to other funds 17,365 4,771,460
Due to other governments 1,092,823 1,092,823
Unearned revenues - 6,452,611
Retention payable 2,428 960,711
Deposits payable - 4,520,483
Total liabilities 1,726,796 26,142,314
Deferred Inflows of Resources:

Unavailable revenue 406,016 497,834
Total deferred inflows of resources 406,016 497,834 Fund Balances:

Nonspendable 50,312 408,842
Restricted 20,616,574 36,989,142
Committed - 36,418,505
Assigned - 30,276,574
Unassigned - 298,796
Total fund balances 20,666,886 104,391,859
Total liabilities, deferred inflows
of resources and fund balances 22,799,698$
131,032,007 $

LIABILITIES, DEFERRED INFLOWS OF RESOURCES,

AND FUND BALANCES
City of Gardena
Balance Sheet (Continued)
Governmental Funds
June 30, 2025
ASSETS
See accompanying notes to the basic financial statements. 29 30

City of Gardena

Annual Comprehensive Financial Report
For the Year Ended June 30, 2025

(This page is intentionally left blank)
Total Fund Balances - Total Governmental Funds 104,391,859$ Capital assets, not being depreciated 34,433,613 $
Capital assets, depreciable 132,891,445
Less accumulated depreciation (88,463,025)
Right-to-use lease assets 889,592
Right-to-use lease assets accumulated amortization (402,760) Right-to-use subscription assets 1,795,336
Right-to-use subscription assets accumulated amortization (1,140,866) 80,003,335 (750,109)
Long-term debt - due within one year (5,974,895)
Long-term debt - due in more than one year (89,088,433) Compensated absences - due within one year (2,084,224)
Compensated absences - due in more than one year (9,726,955) Pension related deferred outflows of resources 19,916,992 Aggregate net pension liabilities (25,370,960)
Pension related deferred inflows of resources (10,424,601) OPEB related deferred outflows of resources 11,371,679
Aggregate net OPEB liabilities (60,080,037)
OPEB related deferred inflows of resources (17,308,725) 5,768,022
497,834
Net position of governmental activities 1,140,782$
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 $9,987,259 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:

City of Gardena
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2025
Amounts reported for governmental activities in the Statement of Net Position were reported differently because:

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

Taxes 72,234,462 $ - $ - $ - $ Licenses and permits 1,967,596 - - - Intergovernmental 501,611 528,716 - - Charges for services 5,941,699 157,000 - 5,952,098 Fines, forfeitures, and penalties 1,017,194 11,251 - - Use of money and property 3,384,334 161,308 - 626,280 Miscellaneous 517,710 137,542 - - Total revenues 85,564,606 995,817 - 6,578,378 EXPENDITURES:

Current:

General government 7,746,625 - - - Public safety 51,354,947 - - - Public works 7,853,200 - - - Recreation and human services 5,659,246 373,912 - - Community development 3,513,725 25,567 - - Capital outlay 1,886,398 79,459 13,297,684 - Debt service:

Principal retirement 536,927 - - 5,140,440 Interest and fiscal charges 89,726
- - 3,475,170 Total expenditures 78,640,794 478,938 13,297,684 8,615,610

REVENUES OVER (UNDER)
EXPENDITURES 6,923,812 516,879 (13,297,684) (2,037,232)

OTHER FINANCING
SOURCES (USES):

Transfers in 3,614,730 4,048 13,297,683 2,692,510 Transfers out (3,591,816) (459,492) - (4,742,928) Issuance of subscription debt 485,710 - - - Total other financing
sources (uses) 508,624 (455,444) 13,297,683 (2,050,418) NET CHANGE IN FUND BALANCE 7,432,436 61,435 (1) (4,087,650) Fund balances, beginning of year 59,616,983 5,971,740 301,894 14,428,136 Fund balances, end of year 67,049,419 $ 6,033,175 $ 301,893 $ 10,340,486$ Major Funds
City of Gardena
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the Year Ended June 30, 2025
See accompanying notes to the basic financial statements. 32 Nonmajor
Governmental
Funds Total
REVENUES:

Taxes 4,369,171 $ 76,603,633 $
Licenses and permits - 1,967,596
Intergovernmental 16,493,661 17,523,988
Charges for services - 12,050,797
Fines, forfeitures, and penalties 35,381 1,063,826 Use of money and property 790,569 4,962,491
Miscellaneous 61,643 716,895
Total revenues 21,750,425 114,889,226
EXPENDITURES:

Current:

General government 32 7,746,657
Public safety 286,211 51,641,158
Public works 2,591,995 10,445,195
Recreation and human services 964,529 6,997,687 Community development 1,154,922 4,694,214
Capital outlay 47,579 15,311,120
Debt service:

Principal retirement 78,084 5,755,451
Interest and fiscal charges 905
3,565,801
Total expenditures 5,124,257 106,157,283

REVENUES OVER (UNDER)
EXPENDITURES 16,626,168 8,731,943

OTHER FINANCING
SOURCES (USES):

Transfers in 60,634 19,669,605
Transfers out (11,275,104) (20,069,340)
Issuance of subscription debt - 485,710 Total other financing
sources (uses) (11,214,470) 85,975
NET CHANGE IN FUND BALANCE 5,411,698 8,817,918
Fund balances, beginning of year 15,255,188 95,573,941 Fund balances, end of year 20,666,886 $ 104,391,859 $ City of Gardena
Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Governmental Funds
For the Year Ended June 30, 2025
See accompanying notes to the basic financial statements. 33 Net Change in Fund Balances - Total Governmental Funds 8,817,918$ Amounts reported for governmental activities in the Statement of Activities are different because:
20,124,702
(9,118,765)
40,012
(1,390,057)
457,830
2,585,712
Principal repayments of long-term debt 8,952,760 $
Interest accrual on loans payables 536,927
Proceeds from issuance of long-term debt (485,710)
Amortization of bond premium 106,654
Amortization of bond discount (13,884) 9,096,747 (566,516)
(409,948)
Change in net position of governmental activities 29,637,635$ 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.

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, 2025
Acquisition of capital assets was reported as expenditures in the governmental funds. However, in the Government-Wide Statement of Activities, the cost of those assets was allocated over the estimated useful lives as depreciation expense. The following was the amount of capital assets recorded in the 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 $749,481 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.

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 14,046,261 $ 5,600,160 $ 19,646,421 $ 14,004,909 $ Account receivables, net 358,653 221,704 580,357 26,009 Due from other governments 2,804,751 - 2,804,751 - Inventories 838,887 - 838,887 - Prepaid items and deposits 40,450 2,574 43,024 29,275 Total current assets 18,089,002 5,824,438 23,913,440 14,060,193 Noncurrent assets:

Capital assets, net 80,974,007 982,689 81,956,696 - Total noncurrent assets 80,974,007 982,689 81,956,696 - Total assets 99,063,009 6,807,127 105,870,136 14,060,193

DEFERRED OUTFLOWS

OF RSOURCES
Deferred outflows of resources
related to pensions 962,654 58,758 1,021,412 - Deferred outflows of resources related
to other postemployment benefits 3,180,052
72,143 3,252,195 -
Total deferred outflows
of resources 4,142,706
130,901 4,273,607 -
City of Gardena
Statement of Net Position
Proprietary Funds
June 30, 2025
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 1,191,221 - 1,191,221 479,424 Accrued liabilities 176,180 3,122 179,302 49,161 Salaries and benefits payable 335,843 8,848 344,691 7,406 Unearned revenue 17,745,531 - 17,745,531 - Accrued interest payable 10,476 2,173 12,649 - Compensated absences, due within one year 454,183 48,811 502,994 - Lease payable, due withing one year 4,034 - 4,034 - Subscription payable, due within one year 111,792 13,180 124,972 - Long-term debt, due within one year 1,065,243 49,735 1,114,978 - Claims payable, due within one year - - - 3,936,012 Total current liabilities 21,094,503 125,869 21,220,372 4,472,003 Noncurrent liabilities:

Compensated absences, due in more than one year 1,816,733 195,241 2,011,974 - Long-term debt, due in more than one year 17,102,640 808,466 17,911,106 - Claims payable, due in more than one year - - - 13,807,427 Aggregate net pension laibility 1,414,666 86,348 1,501,014 - Aggregate net other postemployment
benefits liabilities 9,506,335 247,038 9,753,373 - Total noncurrent liabilities 29,840,374 1,337,093 31,177,467 13,807,427 Total liabilities 50,934,877 1,462,962 52,397,839 18,279,430

DEFERRED INFLOWS

OF RSOURCES
Deferred inflows of resources
related to pensions 41,345 2,524 43,869 - Deferred inflows of resources related
to other postemployment benefits 462,538
325,373 787,911 -
Total deferred inflows of resources 503,883 327,897 831,780 -

NET POSITION
Net investment in capital assets 79,472,710 945,250 80,417,960 - Unrestricted (deficit) (27,705,755) 4,201,919 (23,503,836) (4,219,237) Total net position 51,766,955$ 5,147,169 $ 56,914,124 $ (4,219,237) $ Net position reconciliation
Net position of proprietary funds 51,766,955 $ 5,147,169 $ 56,914,124 $ (4,219,237) $ Adjustment to reflect the consolidation
of internal service fund activities related
to the GTrans and Sewer (10,102,279)
115,020 (9,987,259) 9,987,259
Net position of business-type activities 41,664,676 $ 5,262,189 $ 46,926,865 $ Net position of governmental activities 5,768,022 $
City of Gardena
Statement of Net Position (Continued)
Proprietary Funds
June 30, 2025
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, 2025

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

Charges for services 1,648,528 $ 2,530,554 $ 4,179,082 $ 18,233,959 $ Other 398,963 3,720 402,683 986,663 Total operating revenues 2,047,491 2,534,274 4,581,765 19,220,622 OPERATING EXPENSES:

Salaries and benefits 18,586,918 1,031,417 19,618,335 261,279 Insurance claims - - - 11,202,291 General and administrative 10,055,367 413,711 10,469,078 8,143,898 Depreciation and amortization 7,878,544 199,211 8,077,755 - Other operating expenses 2,439,642 140,134 2,579,776 392,086 Total operating expenses 38,960,471 1,784,473 40,744,944 19,999,554 OPERATING INCOME (36,912,980) 749,801 (36,163,179) (778,932) NON-OPERATING REVENUES (EXPENSES):

Local transportation fund 3,990,153 - 3,990,153 - Other local assistance 12,305,961 - 12,305,961 - Federal transit assistance 1,500,000 - 1,500,000 - State transit assistance fund 10,226,058 - 10,226,058 - Interest income 864,554 200,235 1,064,789 361,897 Interest expense (597,348) (27,714) (625,062) - Total non-operating revenues (expenses) 28,289,378 172,521 28,461,899 361,897

INCOME (LOSS) BEFORE
CONTRIBUTIONS AND TRANSFERS (8,623,602) 922,322 (7,701,280) (417,035)

CONTRIBUTIONS AND TRANSFERS
Capital contributions 2,815,854 - 2,815,854 - Transfers in - 56,858 56,858 2,033,776 Transfers out - (257,123) (257,123) (1,433,776) Total contributions and transfers 2,815,854 (200,265) 2,615,589 600,000 Change in net position (5,807,748) 722,057 (5,085,691) 182,965 Net position (deficit), beginning of year 57,574,703 4,425,112 61,999,815 (4,402,202) Net position (deficit), end of year 51,766,955 $ 5,147,169 $ 56,914,124 $ (4,219,237) $ Change in net position reconciliation:

Change in net position of proprietary funds (5,807,748)$ 722,057 $ (5,085,691)$ 182,965 $ Adjustments to reflect the consolidation
of internal service fund activities related
to the GTrans and Sewer 693,294
56,187 749,481 (749,481)
Change in net position of business-type activities (5,114,454)$ 778,244 $ (4,336,210)$ Change in net position related to governmental activities (566,516) $ City of Gardena
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
For the year ended June 30, 2025
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 1,639,216 $ 2,546,339 $ 4,185,555 $ 18,217,843 $ Receipts from claims and recoveries - - - 986,663 Payments for insurance claims - - - (9,424,483) Payments to suppliers (16,645,781) (507,901) (17,153,682) (8,231,383) Payments to employees (17,274,546) (929,213) (18,203,759) - Other receipts 398,963 3,720 402,683 - Net cash provided (used by) operating activities (31,882,148) 1,112,945 (30,769,203) 1,548,640

CASH FLOWS FROM NON-CAPITAL
FINANCING ACTIVITIES:

Transfers from other funds - 62,871 62,871 2,033,776 Transfers to other funds - (263,136) (263,136) (1,433,776) Principal payments on long term debt (843,636) (35,586) (879,222) - Interest paid (591,216) (26,561) (617,777) - Transit assistance funds received 32,897,091 - 32,897,091 - Net cash provided (used by) non-capital
financing activities 31,462,239
(262,412) 31,199,827 600,000

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Acquisition of capital assets (3,192,615) (154,955) (3,347,570) - Receipt from capital grants 3,717,835 - 3,717,835 - Net cash provided (used by) capital and
related financing activities 525,220
(154,955) 370,265 -
CASH FLOWS FROM INVESTING ACTIVITIES:

Interest received 864,554 200,235 1,064,789 361,897 Net cash provided (used by) investing activities 864,554 200,235 1,064,789 361,897 Net increase (decrease) in cash and cash equivalents 969,865 895,813 1,865,678 2,510,537 Cash and equivalents, beginning of year 13,076,396 4,704,347 17,780,743 11,494,372 Cash and equivalents, end of year 14,046,261 $ 5,600,160 $ 19,646,421 $ 14,004,909 $ City of Gardena
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2025
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) (36,912,980) $ 749,801 $ (36,163,179)$ (778,932) $ Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:

Depreciation and amortization expenses 7,878,544 199,211 8,077,755 - (Increase) decrease:

Accounts receivable (9,312) 15,785 6,473 (16,116) Inventories (72,296) - (72,296) - Prepaid items and deposits 28,857 45,651 74,508 57,705 Deferred outflows of resources - pensions 1,073,216 61,728 1,134,944 - Deferred outflows of resources - OPEB (1,035,608) 2,245 (1,033,363) - Increase (decrease):

Accounts payable (4,170,391) (2,829) (4,173,220) 276,078 Accrued liabilities 63,058 3,122 66,180 (29,182) Accrued salaries and benefits payable 54,304 (8,313) 45,991 4,912 Compensated absences 388,497 89,406 477,903 - Net pension liability (322,947) (15,633) (338,580) - Net other postemployment benefits liability 1,560,738 (70,649) 1,490,089 - Deferred outflows of resources - pensions (267,389) (15,596) (282,985) - Deferred outflows of resources - OPEB (138,439) 59,016 (79,423) - Claims payable -
- - 2,034,175 Total adjustments 5,030,832 363,144 5,393,976 2,327,572 Net cash provided (used) by operating activities (31,882,148)$ 1,112,945 $ (30,769,203)$ 1,548,640 $ Supplemental disclosures of noncash investing and capital related financing activities:

The City had noncash financing transactions relating to operating leases on new equipment of $0 during the fiscal year June 30, 2025.

City of Gardena
Statement of Cash Flows (Continued)
Proprietary Funds
For the year ended June 30, 2025
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, 2025

(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, 2025

(This page is intentionally left blank)
City of Gardena
45 Index to the Notes to the Basic Financial Statements For the Year Ended June 30, 2025
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, 2025
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 – Risks Due to Additional Spending ...................................................................................................... 97 Note 17 – Subsequent Events .............................................................................................................................. . 97

47 City of Gardena

Notes to the Basic Financial Statements
For the Year Ended June 30, 2025

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, 2025
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, 2025
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, 2025
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, 2025.

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, 2025
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, 2025
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 accordan ce with GASB Statement No. 101 – Compensated Absences. In governmental funds, the costs for 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, 2025
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, 2023
Measurement Date June 30, 2024
Measurement Period July 1, 2023 to June 30, 2025

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, 2025
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, 2024
Measurement Date June 30, 2025
Measurement Period July 1, 2023 to June 30, 2024

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, 2025
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, 2024 Unsecured, redemptions, and SB813 taxes December 20, 2024 Homeowners' exemption, secured, and SB813 taxes January 17, 2025 Homeowners' exemption, secured, and SB813 taxes February 20, 2025 Redemptions, secured, and SB813 taxes March 20, 2025 Secured and SB813 taxes
April 17, 2025 Secured and SB813 taxes
May 20, 2025 Redemptions, homeowners' exemption, secured, and SB813 taxes June 20, 2025 Homeowners' exemption, SB813 taxes
July 18, 2025 Secured and SB813 taxes
August 20, 2025 Secured, redemptions, unsecured, and SB813 taxes City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
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, 2025
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, 2025, the financial stat ements include the adoption of GASB Statement No. 101, Compensated Absences . The objective of this statement is to bette r meet the information needs of financial statement users by updating the recognition and meas urement guidance for co mpensated absences. The cumulative effect of adopting this st andard was not significant, hence, no restatement of beginning net position was required.

The City also adopted GASB Statement No. 102, Certain Risk Exposures during the current year. See notes 16 and 17 below for certain risk exposure disclosures.

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
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, 2025 for its governmental activities of $(100,937,199). The defic it 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 $25,370,960 and $1,501,014 for governmental activities and business-type activities, resp ectively. The aggregate net OPEB liabilities were $60,080,037 and $9,753,373 for governmental activities and business- type activities, respectively. The Pension Obligation Bonds were $66,802,423 a nd $18,807,577 for governmental activities and business-type activities, respectively.

The following funds had a deficit fund balance/net position at June 30, 2025:

Nonmajor Governmental Funds:

Community Development Block Grant
(CDBG)
Internal Service Funds:

$ (79,230)

Liability Insurance Fund (922,997)
Workers' Compensation Fund (8,310,177)
In addition, the GTrans Enterprise had deficit unrestricted net position of $(27,705,757) at June 30, 2025.

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 $ 81,686 $ 108,102 $ (26,416)
Public safety
Police 36,096,596 37,446,965 (1,350,369)
L.A. County Fire Department 13, 493,514 13,907,982 (414,468) Recreation and human services 5,083,378 5,659,246 (575,868) Community development 3,263,654 3,513,725 (250,071)
Capital outlay 1,105,607 1,479,262 (373,655)
Debt service:

Principal

-

536,927

(536,927)
Interest and fiscal charges - 89,726 (89,726)
City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
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
Recreation and human services
Capital outlay

-
-

373,912
79,459

(373,912)
(79,459)

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

Princi
pal retirement

665,000

705,000

(40,000)
2007 Refunding Revenue Bonds SBRPCA Debt Service Fund
Debt service:

Principal retirement

125,000

130,000

(5,000)
2020 Taxable Pension Obligation Bonds Debt Service Fund Debt service:

Principal retirement

3,285,063

3,745,440

(460,377)
Nonmajor Governmental Funds:

Prop C Local Return Special Revenue Fund 41,228 55,335 (14,107) Gas Tax Special Revenue Fund 574,300 1,262,338 (688,038) Public Safet Grants Special Revenue Fund 276,126 379,290 (103,164) Community Development Block Grant (CDBG)
Special Revenue Fund

592,299

1,154,922

(562,623)

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
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, 2025:

Governmental
Activities
Business-Type
Activities

Total
Cash and investments $ 109,889,991 $ 19,646,421 $ 129,536,412 Cash and investments held by fiscal agents 15,092,284 - 15,092,284 Total cash and investments $ 124,982,275 $ 19,646,421 $ 144,628,696

The City’s cash and investments at June 30, 2025, in more detail:

Cash:

Petty cash $ 1,490
Demand deposits 23,785,145
Total cash and cash equivalents 23,786,635
Investments:

Money market mutual fund 35,251,124
U.S. Treasury 14,224,587
Local Government investment pools 30,538,591
Corporate notes 11,659,679
Local Agency Investment Fund 5,770,315
U.S. Government sponsored enterprise securities 6,379,733 Foreign negotiable certificates of deposit 1,925,748
Total investments 105,749,777
Total cash and investments 129,536,412
Cash and investments with fiscal agents 15,092,284
Total $ 144,628,696

A. Deposits
The carrying amounts of the City’s demand deposits were $23,785,145 at June 30, 202 5. Bank balances at that date were $23,787,348, 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, 2025
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, 2025, 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, 2025, the City had $5,770,315 invested in LAIF, which had invested 3.81% 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, 2025
62 Note 3 – Cash and Investments (Continued)
C. Fair Value Measurement
At June 30, 2025, 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, 2025:

Measurement Input
Quoted Prices
in Active Significant
Markets for Other Observable

Investment Type

Money market mutual fund $ - $ - $ 35,251,124 $ 35,351,124 U.S. Treasury 14,224,587 - - 14,224,587
Local Government investment pools
(1) - 30,538,591 - 30,538,591
Corporate notes(1) - 11,659,679 - 11,659,679
Local Agency Investment Fund - - 5,770,315 5,770,315
U.S. Government sponsored enterprise securities (1) - 6,379,733 - 6,379,733 Foreign negotiable certificates of deposit (2) - 1,925,748 - 1,925,748 Cash and investments with fiscal agents:

Money market mutual fund - - 14,862,488 14,862,488
U.S. Government sponsored enterprise securities (1) - 229,796 - 229,796 Total $ 14,224,587 $ 50,733,547 $ 55,883,927 $ 120,842,061 (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, 2025, 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 $ 35,251,124 $ 35,251,124 $ - $ - U.S. Treasury 14,224,587 4,621,829 7,423,320 2,179,438
Local Government investment pools 30,538,591 30,538,591 - - Corporate notes 11,659,679 1,552,838 5,397,687 4,709,154 Local Agency Investment Fund 5,770,315 5,770,315 - - U.S. Government sponsored enterprise securities 6,379,733 790,758 3,394,545 2,194,430 Foreign negotiable certificates of deposit 1,925,748 - 899,485 1,026,263 Cash and investments with fiscal agents:

Money market mutual fund 14,862,488 14,862,488 - -
U.S. Government sponsored enterprise securities 229,796 229,796 - - Total $ 120,842,061 $ 93,617,739 $ 17,115,037 $ 10,109,285

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, 2025
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, 2025, 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 4.78% U.S. Treasury Aaa Not Rated 11.77%
U.S. Government sponsored enterprise securities Aa1 AA+ 5.28% Local Government investment pools Not Rated Not Rated 25.27% Foreign negotiable certificates of deposit A2 Aa 1.59% Corporate notes Aaa A 9.65%
Money market mutual fund Aaa AAAm 41.47%
U.S. Government sponsored enterprise securities AAA AAAm 0.19% 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 commun ity. The facility opened on February 6, 1995 with a renewable 30-year lease term. On Febr uary 28, 2025, the lease term was ex tended to February 29, 2040. Under the terms of the agreement, the ma ximum amount that the City could r eceive was $1,400,000. This amount is payable in monthly payments, with annual rent adju stments over the lease term. In January 2025, the monthly payment was increased from $1,030 to $1,336 per month. At the adjustment date, annual rent was equal to total rent of $1,400,000 less all previous payments, multip lied by the six-month average LAIF interest rate. The lease includes an option to purchase the land at the e nd 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, 2025, future lease payments from the YMCA, including interest, were $346,717. Since the City has not earned the revenue for the future lease payments, there was no revenue recognized or receivabl es reported at June 30, 2025 for these future lease payments.

B. State Mandated Claims Reimbursement
The City recorded an outstanding receivable of $818, 539 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 $818,539. 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 receivable associated with the State Mandated Claims Reimbursement as of June 30, 2025.

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
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, 2024

Additions

Deletions

Allowance
Balance
June 30, 2025
Home-Owner Occupied Deferred Loans
CalHOM E

$ 362,254

$ -

$ -

$ -

$ 362,254
State HOME Loans 1,473,041 - (48,591) - 1,424,450
Subtotal 1,835,295 - (48,591) - 1,786,704
Spring Park Senior Villa Developer Loan - - - - -
Total $ 1,835,295 $ - $ (48,591) $ - $ 1,786,704

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, 2025, the outstanding loan balance is $1,786,704.

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 Pa rk 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 te rm of 55 years. The repayment of the loan is based on the residual receipts of the rental units. The affordability covenant also expires in 55 years after completion of the project. As of June 30, 2025, the City funded $2, 874,115 for the development of the project and accrued interest in the amount of $1,016,659 which was required by the State of California. This results the City in reporting loans receivable in the amount of $3,890,774. However, management estimated that the loans will not be repaid due to negative residual receipts and reported an allowance for doubtful accounts in the amount of $3,890,774. As a result, both the Economic Developm ent Grants Special Revenue Fund in the governmental fund financial statements and gove rnmental activities in the government -wide financial statements reported zero balances for loans receivable associated with the Spring Park Senior Villa as of June 30, 2025.

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
65 Due From Other Funds

Note 6 – Interfund Transactions

A. Fund Financial Statements

Due From/To Other Funds - At June 30, 2025, the City had the following due from/to other funds:

General Fund

Governmental Funds:

City Debt Service Funs $ 4,754,095
Nonmajor Governmental Funds $ 17,365 Total $ 4,771, 460

The above amounts resulted from temporary reclassifications made at June 30, 2025 to cover cash shortfalls.

Transfers In/Out – During the year ended June 30, 2025, 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
Economic
Develop-
ment
Fund

City
Debt
Service
Nonmajor
Govern-
Mental
Funds
Nonmajor
Sewer
Enterprise
Fund

Internal
Service
Funds

Total
Governmental Funds:

General Fund $ - $ 234,393 $ 4,048 $2,692,510 $ 60,634 $ - $ 600,000 $ 3,591,585 Economic Development
Grants Special Revenue
Fund

-

459,952

-

-

-

-

-

459,952
Debt Service Fund - 4,742,928 - - - - - 4,742,928 Nonmajor
Governmental Funds

3,357,607

7,860,409

-

-

-

56,858

-

11,274,874
Enterprise Funds:

Nonmajor Sewe
r 257,123 - - - - - - 257,123
Internal Service Funds - - - - - - 1,433,776 1,433,776

Total $3,614,730 $13,297,683 $ 4,048 $2,692,510 $ 60,634 $ 56,858 $2,033,776 $21,760,239

Due To Other Funds
City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
66 Note 6 – Interfund Transactions (Continued)

B. Fund Financial Statements (Continued)

Transfers In/Out (Continued)
General Fund transferred $234,393 to the City Capital Pr ojects Fund to fund the deferred maintenance projects, $2,692,510 to Debt Service Fund for debt service pa yments and bank admin f ees, $64,048to Nonmajor Governmental Funds and Grants to cover deficit grants funds and grant unallowable expenditures, and $600,000 to Internal Service Funds to pay as you go general liability and workers’ compensation liability.

Economic Development Grants Special Revenue funds tran sferred $459,952 to Capital Project Fund to fund capital projects

Transfers of $4,742,928 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 $3,357,607 for fiscal year 2025 ARPA claims and qualified expenditures job costs relating cap ital projects, police departme nt expenditures, street sweeping program, and tree maintenance and street maintenance program. Transfers from Nonmajor Governmental Funds of $7,860,409 to the City Capital Projects Fund are for grant funded projects Sewer Enterprise Funds transfers consists of transfer of $257,123 to the General Fund for job costs related to capital projects.

Internal Service Funds transfers of $1,433,776 to Internal Service Funds to pay as you go workers’ compensation liability and pay as you general liability.

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
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, 2025 is as follows:

Governmental Activities

Balance
July 1, 2024

Additions

Deletions

Transfers
Balance
June 30, 2025
Capital assets, not being depreciated:

Land $ 13,993,823 $ - $ - $ - $ 13,993,823 Monuments 63,893 - - - 63,893
Investments in JPA - 223,346 - - 223,346
Construction in progress 8,630,839 11,610,804 - (89,092) 20,152,551 Total capital assets, not being depreciated 22,688,555 11,834,150 - (89,092) 34,433,613 Capital assets, being depreciated:

Buildings/structures and improvements 27,932,024 342,710 (1,731,987) - 26,542,747 Machinery and equipment 13,346,044 1,915,204 (415,460) 89,092 14,934,881 Investment in JPA - 7,083,490 - - 7,083,490
Infrastructure:

Street lights network 1,292,393 - - - 1,292,393
Traffic lights network 12,940,788 - - - 12,940,788
Roadway network 70,097,147 - - - 70,097,147
Total capital assets, being depreciated 125,608,396 9,341,404 (2, 147,447) 89,092 132,891,445 Less accumulated depreciation for:

Buildings/structures and improvements

(20,543,903)

(635,891)

140,431

-

(21,039,363)
Machinery and equipment (11,293,986) (769,965) 355,497 - (11,708,454) Investment in JPA - (5,571,656) - - (5,571,656)
Infrastructure:

Street light network (1,120, 076) (43,080) - - (1,163,156) Traffic lights network (12,701,971) (12,570) - - (12,714,541) Roadway network (34,862,837) (1,403,018) - - (36,265,855) Total accumulated depreciation (80,522,773) (8,436,180) 495,928 - (88,463,025) Total capital assets, being depreciated, net 45,085,623 905,224 (1,651, 519) 89,092 44,428,420 Intangible assets, being amortized
Right-to-use lease assets-equipment 905,527 128,744 (144,679) - 889,592 Right-to-use subscription assets 1,456,361 471,179 (132,204) - 1,795,336 Total intangible assets, being amortized 2,361,888 599,923 (276,883) - 2,684,928 Less accumulated amortization for:

Right-to-use lease assets-equipment (357,400) (190,039) 144,679 - (402,760) Right-to-use subscription assets (781,268) (492,547) 132,949 - (1,140,866) Total accumulated amortization (1,138,668) (682,586) 277,628 - (1,543,626) Total intangible assets, being amortized, net 1,223,220 (82,663) 745 - 1,141,302 Governmental activities capital assets, net $ 68,997,398 $ 12,656,711 $ (1,650,774) $ - $ 80,003,335 Depreciation and amortization expenses were charged to functions/programs of the governmental activities for the fiscal year ended June 30, 2025 as follows:

Depreciation Amortization
General government $ 297,605 $ 158,351
Public safety 6,198,432 237,812
Public works 1,679,940 67,194
Community development 248,919 93,916
Recreation and human services 11,284 125,313
Total depreciation expense $ 8,436,180 $ 682,586
City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
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, 2025 is as follows:

Business-Type Activities

Balance
July 1, 2024

Additions

Deletions

Transfers
Balance
June 30, 2025
Capital assets, not being depreciated:

Land

$ 12,956,405

$ -

$ - $

-

$ 12,956,405
Construction in progress 11,685,097 2,845,736 - (12,873,011) 1,657,822 Total capital assets, not being depreciated 24,641,502 2,845,736 - (12,873,011) 14,614,227 Capital assets, being depreciated:

Buildings/structures and improvements

39,893,428

-

-

-

39,893,428
Buses 61,131,930 - - - 61,131,930
Machinery and equipment 13,353,609 69,616 (29,973) 12,873,011 26,266,263 Furniture and fixtures 1,639,908 - - - 1,639,908 Infrastructure 11,184,496 - - - 11,184,496
Total capital assets, being depreciated 127,203,371 69,616 (29,973) 12,873,011 140,116,025 Less accumulated depreciation for:

Buildings/structures and improvements

(15,855,078)

(1,022,908)

-

-

(16,877,986)
Buses (26,214,718) (3,365,477) - - (29,580,195) Machinery and equipment (10,968,646) (3,459,531) 24,985 - (14,403,192) Furniture and fixtures (1,588,086) (32,732) - - (1,620,818) Infrastructure (10,696,004) (33,689) - - (10,729,693)
Total accumulated depreciation (65,322,532) (7,914,337) 24,985 - (73,211,884) Total capital assets, being depreciated, net 61,880,839 (7,844,721) (4,988) 12,873,011 66,904,141 Intangible assets, being amortized
Right-to-use lease assets-equipment

20,415

-

-

-

20,415
Right-to-use subscription assets 373,407 474,542 (74;988) - 772,961 Total intangible assets, being amortized 393,822 474,542 (74,988) - 793,376 Less accumulated amortization for:

Right-to-use lease assets-equipment (2,721) (4,081) - - (6,802) Right-to-use subscription assets (226,561) (165,613) 43,928 - (348,246) Total accumulated amortization (229,282) (169,694) 43,928 - (355,048) Total intangible assets, being amortized, net 164,540 304,848 (31,060) - 438,328 Business-type activities capital assets, net $ 86,686,881 $ (4,694,137) $ (36,048) $ - $ 81,956,696

Depreciation and amortization expenses for business-type activities for the year ended June 30, 2025 was charged as follows:

Depreciation Amortization
Gtrans major enterprise fund $ 7,743,454 $ 135,090
Sewer nonmajor enterprise fund 170,883 34,604
Total depreciation expense $ 7,914,337 $ 169,694
City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
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, 2025 is as follows:

Balance Balance Due within Due in more
July 1, 2024 Additions Deletions June 30, 2025 One Year One Year 2006 Refunding Certificates of
Participation Series A - publicly offered $ 5,275,000 $ - $ (705,000) $ 4,570,000 $ 750,000 $ 3,820,000 2007 Refunding Revenue
Bonds, Series A - publicly offered 1, 070,000 - (130,000) 940,000 135,000 805,000 2014 Taxable Lease Revenue
Refunding Bonds - publicly offered 8,680,000 - (70,000) 8,610,000 75,000 8,535,000 Bond discount - 2014 Taxable
Lease Revenue Refunding Bonds (164,405) - 13,884 (150,521) (13,884) (136,637) 2016 SCE On-Bill Financing Loan
- Direct borrowing 14,769 - (7,769) 7,000 7,000 -
2020 Taxable Pension Obligation
Bonds - publicly offered 70, 547,863 - (3,745,440) 66,802,423 3,960,023 62,842,400 2021 Lease Revenue Bonds
- Publicly offered 11,975,000 - (490,000) 11,485,000 510,000 10,975,000 Bond premium - 2021 Lease
Revenue Bonds 1,795,349 - (106,654) 1,688,695 106,654 1,582,041 Loan payable 3,804,551 - (3,804,551) - - - Lease payable 544,477 - (47,407) 497,070 148,758 348,312 Subscription liabilities 617,471 485,710 (489,520) 613,661 296,344 317,317 Claims payable 15,709,264 11,108,465 (9,074,290) 17,743,439 3,936,012 13,807,427 Compensated absences 10,421,122 1,390,057 * - 11,811,179 2,084,224 9,726,955 Total $ 130,290,461 $ 12,984,232 $ (18,656,747) $ 124,617,946 $ 11,995,131 $ 112,622,815

* The change in the compensated absences liability is presented as a net change.

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, 2025
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, 2025 totaled $4,570,000. The annua l debt service requirements on these certificates are as follows:

Fiscal Year Principal Interest Total
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 965,000 49, 923 1,014,923
2031 300,000 9, 570 309,570
Total $ 4,570,000 $ 820,468 $ 5,390,468

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, 2025 totaled $9 40,000. The annual debt service requirements on these bonds are as follows:

Fiscal Year Principal Interest Total
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 170,000 17, 681 187,681
2031 175,000 8, 670 183,670
Total $ 940,000 $ 174,957 $ 1,114,957

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
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, 2025 totaled $8, 610,000. The annual debt service requirements on these bonds as follows:

Fiscal Year Principal Interest Total
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 815,000 414, 750 1,229,750
2031-2035 6,490,000 1,252,500 7,742,500
2036 990,000 49, 500 1,039,500
Total $ 8,610,000 $ 3,413,980 $ 12,023,980

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
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, 2025 totaled $7,000. The annual debt service requirements on this loan as follows:

Fiscal Year Principal Interest Total
2026

$ 7,000

$ - $ 7,000
Total $ 7,000 $ - $ 7,000

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, 2025
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, 2025 totaled $66,802,423. The annual debt service requirements for the governmental activities on these bonds are as follows:

Fiscal Year Principal Interest Total
2026

$ 3,960,023

$ 2,142,912 $ 6,102,935
2025 4,038,053 2, 061,098 6,099,151
2028 4,131,689 1, 965,558 6,097,247
2029 4,244,832 1, 855,530 6,100,362
2030 4,361,877 1, 738,244 6,100,121
2031-2035 23,853, 772 6,644,794 30,498,566
2036-2039 22,212,177 2,234,488 24,446,665
Total $ 66,802,423 $ 18,642,624 $ 85,445,047

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 $12,837,149 at June 30, 2025.

The amount outstanding at June 30, 2025 totaled $11,485,000. The a nnual debt service requirements on these bonds as follows:

Fiscal Year Principal Interest Total
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 620,000 317, 750 937,750
2031-2035 3,560,000 912,550 4,472,550
2036-2040 4,180,000 520,650 4,700,650
2041 915,000 27, 450 942,450
Total $ 11,485,000 $ 3,332,650 $ 14,817,650
City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
74 Note 8 – Long-Term Liabilities (Continued)

A. Governmental Activities (Continued)
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, 2025 are as follows:

Fiscal Year Principal Interest Total
2025 $ 148,758 $ 12,761 $ 161,519
2026 133,823 8, 777 142,600
2027 128,829 4, 668 133,497
2028 49,872 1,812 51,684
2029 17,119 925 18,044
2030 - 2032 18,669 543 19,212
Total $ 497,070 $ 29,486 $ 526,556

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
2026 $ 296,344 $ 16,432 $ 312,776
2027 220,072 8, 856 228,928
2028 73,284 2,818 76,102
2029 21,695 545 22,240
2030 2,266 9 2,275
Total $ 613,661 $ 28,660 $ 642,321
Legal Debt Margin

The City is subject to legal debt margin and the City ’s legal debt limit was in the amount of $343,155,948 at June 30, 2025.

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
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, 2025 was $11,811,179.

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, 2025:

Balance
July 1, 2024

Additions

Deletions
Balance
June 30, 2025
Due within
One Year
Due in more
One Year
2020 Taxable Pension Obligation
Bonds - publicly offered

$ 19,862,137

$ -

$ (1,054,560)

$ 18,807,577

$ 1,114,978

$ 17,692,599
Lease payable 17,884 - (3,902) 13,982 4,034 9,948
Subscription liabilities 154,290 496,882 (317,641) 333,531 124,972 208,559 Compensated absences 2,037,065 477,903 * - 2,514,968 502,994 2,011,974 Total $ 22,071,376 $ 974,785 $ (1,376,103) $ 21,670,058 $ 1,746,978 $ 19,923,080

* The change in the compensated absences liability is presented as a net change. 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, 2025 totaled $18, 807,577. The annual debt service requirements for the business-type activities on these bonds are as follows:

Fiscal Year Principal Interest Total
2025

$ 1,114,978

$ 603,356 $ 1,718,334
2026 1,136,948 580, 320 1,717,268
2027 1,163,312 553, 420 1,716,732
2028 1,195,168 522, 440 1,717,608
2029 1,228,123 489, 418 1,717,541
2030-2034 6,716,230 1,870,896 8,587,126
2035-2039 6,252,818 613,920 6,866,738
Total $ 18,807,577 $ 5,233,770 $ 24,041,347
City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
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, 2025 are as follows:

Fiscal Year Principal Interest Total
2026

$ 4,034

$ 401 $ 4,435
2027 4,170 265 4,435
2028 4,309 126 4,435
2029 1,469 10 1,479
Total $ 13,982 $ 802 $ 14,784
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
2026 $ 124,973 $ 9,949 $ 134,922
2027 134,859 6,255 141,114
2028 73,699 2,274 75,973
Total $ 333,531 $ 18,478 $ 352,009
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, 2025was $2,514,968.

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
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, 2025, $17,743,439 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, 2025 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
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 2024-2025 15,709,264 11,108,465 (9,074,290) 17,743,439 3,936,012 13,807,427

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, 2025
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, 2024 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 $ 4,153,900 $ - $ 4,153,900 Change in assumptions:

Miscellaneous 282,330 52,083 334,413
Safety 424,620 - 424,620
Total change in assumptions 706,950 52,083 759,033
Difference in projected and actual earnings on pension investments:

Miscellaneous 3,112,673 574,217 3,686,890
Safety 833,031 - 833,031
Total difference in projected and actual earnings on pension investments 3,945,704 574,217 4,519,921 Differences between expected and actual experience
Miscellaneous 2,141,792 395,112 2,536,904
Safety 1,406,479 - 1,406,479
Total differences between expected and actual experience 3,548,271 395,112 3,943,383 Adjustment due to differences in proportions:

Safety 7,562,167 - 7,652,167
Total deferred outflows of resources $ 19,916,992 $ 1,021,412 $ 20,938,404 Aggregate net pension liabilities:

Miscellaneous $ 8,136,581 $ 1,501,014 $ 9,637,595
Safety 17,234,379 - 17,234,379
Total aggregate net pension liabilities $ 25,370,960 $ 1,501,014 $ 26,871,974 Deferred inflows of resources:

Differences between expected and actual experience:

Miscellaneous $ 237,799 $ 43,869 $ 281,668
Safety 45,731 - 45,731
Total differences between expected and actual experience 283,530 43,869 327,399 Difference between City's contribution and proportionate share of contributions:

Safety

10,141,071

-

10,141,071
Adjustment due to differences in proportions:

Safety

-

-

-
Total deferred inflows of resources $ 10,424,601 $ 43,869 $ 10,468,470 Pension Expense:

Miscellaneous

$ 4,384,347

$ 808,812

$ 5,193,159
Safety (1,215,788) - (1,215,788)
Total pension expense $ 3,168,559 $ 808,812 $ 3,977,371 City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
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, 2023 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, 2025
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, 2023, the valuation date, the following employees were covered by the benefit terms:

Miscellaneous
Plans
Safety

Classic PEPRA
Active employees 301 51 38
Transferred and terminated employees 404 45 12
Retired Employees and Beneficiaries 439 245 0
Total 1,144 341 50
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, 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%

Current Fiscal Year Ended June 30, 2025
Plans
Miscellane ous Safety
Classic PEPRA Classic PEPRA
Employer Contribution Rate 10.34% 10.34% 29.30% 14.72%
Employee Contribution Rate 7.000% 7.750% 9.000% 14.500% City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
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, 2023 valuation was rolled forward to determine the June 30, 2024 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, 2023 valuation date (2023 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 2023 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, 2025
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, 2025
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, 2022 (Valuation Date) $ 196,197,513 $ 185,466,498 $ 10,731,015 Changes recognized for the measurement period:

Service Cost 3,573,524 - 3,573,524
Interest on the total pension liability 13,456,137 - 13,456,137 Changes of benefit terms - - -
Difference between expected and actual experience 2,839,560 - 2,839,560 Changes of assumptions - - -
Plan to plan resource movement - (2,486) 2,486
Contributions from the employer - 1,896,803 (1,896,803) Contributions from employees - 1,898,079 (1,898,079)
Net investment income - 17,321,160 (17,321,160)
Benefit payments, including refunds of employee
contributions (11,614,714)

(11,614,714)

-
Administrative expense - (150,915) 150,915
Other miscellaneous income/(expense) - - -
Net changes during July 1, 2022 to June 30, 2023 8, 254,507 9,347,927 (1,093,420) Balance at June 30, 2023 (Measurement Date) $ 204,452,020 $ 194,814,425 $ 9,637,595

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, 2023 (Valuation Date) $ 259,527,416 $ 240,647,700 $ 18,879,716 Balance at June 30, 2024 (Measurement Date) 270,914,930 253,680,551 17,234,379 Net Changes during 2023-2024 11,387,514 13,032,851 (1,645,337)

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
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, 2023). 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, 2024). 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 (2023-2024).

(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, 2023 0.252574%
June 30, 2024 0.236384%
Change - Increase (Decrease) (0.016190)%
City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
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 $ 36,490,811 $ 9,637,595 $ (12,399,319) Safety Plan $ 54,241,098 $ 17,234,379 $ (13,031,915)

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, 2025, the City recognized pe nsion expense (credit) in the amounts of $5,193,159 and $(1,215,788) for the miscellaneous plan and safety plan, respectively.

As of measurement date of June 30, 2024, 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 $ 334,413 $ -
Difference between expected and actual experience 2,536,904 (281,668) Net difference between projected and actual earning on
pension plan investments

3,686,890

-
Total $ 6,558,207 $ (281,668)
City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
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 $ 4,153,900 $ - Changes of assumptions 424,620 -
Difference between expected and actual experience 1,406,479 (45,731) Difference between projected and actual earnings on
pension plan investments 833,031 -
Adjustment due to differences in proportions 7,562,167 - Difference between City contributions and
proportionate share of contributions - (10,141,071)
Total $ 14,380,197 $ (10,186,802)

The amounts above are net of outflows and inflows recognized in the 2023-24 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 2023-24 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.

$4,153,900 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, 2026.

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
2026

$ 1,889,781 $ 770,126
2027 6,052,547 178,674
2028 (704,552) (624,279)
2029 (961,237) (285,026)
2030 - -
Thereafter - -
$ 6,276,539 $ 39,495
City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
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, 2025 the City’s payroll covered by the plan was $823,668. The City made employer contributions in the amount of $30,646. There were 74 participants of the Plan as of June 30, 2025.

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, 2025, 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 $ 3,914,761 $ 764,333 $ 4,679,094 Change in assumptions 3,644,350 961,889 4,606,239
Differences between expected and actual experience 3,812,568 1,470,170 5,282,738 Differences in projected and actual earnings - 55,803 55,803 Total deferred outflows of resources $ 11,371,679 $ 3,252,195 $ 14,623,874 Total other postemployment benefit liabilities $ 60,080,037 $ 9,753,373 $ 69,833,410 Deferred inflows of resources:

Change in assumptions $ 16,643,669 $ 422,603 $ 17,066,272 Net difference between projected and actual return
on OPEB investment

62,381

-

62,381
Differences between expected and actual experience 602,675 365,308 967,983 Total deferred inflows of resources $ 17,308,725 $ 787,911 $ 18,096,636 OPEB expense $ 3,456,931 $ 1,141,636 $ 4,598,567
City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
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 $1,566 and $1,531 per month for the calendar years 2025 and 2024, 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, 2025 valuation date, the following numbers of participants were covered by the benefit terms:

Plans
Governmental
Activities

GTrans

Sewer
Inactives currently receiving benefits 193 41 1
Inactives entitled to benefit payments - - -
Active employees 226 101 2

Total 419 142 3

Contributions
Fiscal Year Ended June 30, 2025
Governmental
Activities

GTrans

Total
Benefit payments $ 3,060,971 $ 651,738 $ 3,712,709 Trust contributions 750,000 - 750,000

Total $ 3,810,971 $ 651,738 $ 4,462,709

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
89 Note 11 – Other Postemployment Benefits (“OPEB”) (Continued) Net OPEB Liability
The City’s Net OPEB liability was measured as of June 30, 2024, and total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of June 30, 2024.

Significant Actuarial Assumptions Used for Total OPEB Liability

The total OPEB liability, measured as of June 30, 2024, was determined using the following actuarial assumptions:

Actuarial Cost Method
Actuarial Assumptions:

Entry Age, Level Percent of Pay
Actuarial Valuation Date June 30, 2024
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, 2024 valuation were based on a review of the plan experience during the period June 30, 2024 to June 30, 2025.

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, 2025
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, 2025

June 30, 2024 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, 2025
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, 2023 $ 65,653,327 $ 1, 934,426 $ 63,718,901 Changes recognized for the measurement period:

Service Cost 2,150,896 - 2,150,896
Interest on the total pension liability 2,419,492 - 2,419,492 Differences between expected and actual experience 4,175,127 - 4,175,127 Changes in assumptions and other inputs (8,362,730) - (8,632,730) Contributions - employer - 3,810,971 (3,810,971)
Net investment income - 211,315 (211,315)
Benefits payments (3,060,971) (3,060,971) -
Administrative expenses - (637) 637
Net changes during July 1, 2023 to June 30, 2024 (2, 678,186) 960,078 (3,638,864) Balance at June 30, 2024 (Measurement Date) $ 62, 975,141 $ 2,895,104 $ 60,080,037 City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
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, 2023 $ 13,208,865 $ 5,263,268 $ 7,945,597 Changes recognized for the measurement period:

Service cost 338,423 - 338,423
Interest on the total OPEB liability 826,647 - 826,647
Differences between expected and actual experience 628,776 - 628,776 Changes in assumptions 992,561 - 992,561
Contributions - employer - 651,738 (651,738)
Net investment income - 575,646 (575,646)
Benefit payments (651,738) (651,738) -
Administrative expenses - (1,715) 1,715
Net changes during July 1, 2023 to June 30, 2024 2, 134,669 573,931 1,560,738 Balance at June 30, 2024 (Measurement Date) $ 15, 434,534 $ 5,837,199 $ 9,506,335

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, 2023 $ 317,687 $ - $ 317,687 Changes recognized for the measurement period:

Service cost 10,819 - 10,819
Interest on the total OPEB liability 11,855 - 11,855
Differences between expected and actual experience (92,381) - (92,381) Changes in assumptions 6,997 - 6,997
Contributions - employer - - -
Net investment income - - -
Benefit payments (7,489) - (7,489)
Administrative expenses - - -
Net changes during July 1, 2023 to June 30, 2024 (70,649) - (70,649) Balance at June 30, 2024 (Measurement Date) $ 247,038 $ - $ 247,308

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
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 Retiree Health Plans, as well as what the governmental activities total OPEB liability would be if it were calculated using a discount rate that is 1- percentage-point lower (4.11 percent) or 1-percentage- point higher (6.11 percent) than the current discount rate:

Plan's Net OPEB Liability
Discount Rate - 1%
(4.11%)
Current Discount
Rate (5.11%)
Discount Rate + 1%
(6.11%)
Governmental Activities $ 68,837,918 $ 60,080,037 $ 52,870,492 The following presents the net OPEB liability of the Se wer’s Retiree Health Plans, as well as what the Sewer Enterprise’s total OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (2.93 percent) or 1-percentage- point higher (4.93 percent) than the current discount rate:

Plan's Net OPEB Liability
Discount Rate - 1%
(2.93%)
Current Discount
Rate (3.93%)
Discount Rate + 1%
(4.93%)
Sewer $ 285,499 $ 247,038 $ 215,293

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%)

$ 11,574,721 $ 9,506,335 $ 7,796,867

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 $ 68,837,918 $ 60,080,037 $ 52,570,492 GTrans $ 7,557,050 $ 9,506,335 $ 11,923,649
Sewer $ 209,603 $ 247,038 $ 293,788
City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
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, 2024, the governmental activities recognized expense of $3,456,931. At June 30, 2025, 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 $ 3,812,568 $ (602,675) Changes in assumptions 3,644,350 (16,643,669)
Net difference between projected and actual earnings
on plan investments - (62,381)
Employer contributions made subsequent to
the measurement date 3,914,761 -
Total $ 11,371,679 $ (17,308,725)

For the measurement period ended June 30, 2024, GTrans recognized expense of $1,143,283. At June 30, 2025, 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 $ 1,460,820 $ (112,694) Changes in assumptions 906,837 (349,844)
Net difference between projected and actual earnings
on plan investments 55,803 -
Employer contributions made subsequent to
the measurement date 756,592 -
Total $ 3,180,052 $ (462,538)

For the measurement period ended June 30, 2024, Sewer rec ognized a credit of $1,647. At June 30, 2025, 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 $ 9,350 $ (252,614) Changes in assumptions 55,052 (72,759)
Employer contributions made subsequent to
the measurement date

7,741

-
Total $ 72,143 $ (325,373)

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, 2024, 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, 2025
95 Note 11 – Other Postemployment Benefits (“OPEB”) (Continued)

OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB (Continued)
$3,914,761, $756,592, and $7,741 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, 2026. 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
2026

$ (743,672) $ 277,531 $ (24,321)
2027 (1,215, 325) 474,133 (24,321)
2028 (2,364,646) 250,545 (24,321) 2029 (2,458,154) 239,192 (23,709) 2030 (2,087, 604) 323,449 (21,608)
Thereafter (982,133) 363,354 (142,691)
$ (9,851,534) $ 1,928,204 $ (260,971)

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, 2025, the amount held by the Trustee for the City employees is $38,599,034.

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, 2025:

Governmental
Activities
Business-Type
Activities
Capital Assets, net of
accumulated depreciation and amortization $ 80,003,335 $ 81,956,694 Less: outstanding principal on capital related debt, net (22,743,905) (347,513) Add: Unspent debt proceeds 12,828,297 -
Less: capital assets related accounts payable (4,422,028) (1,191,221) Less: retention payable (958,283) -
Net investments in capital assets $ 64,707,716 $ 80,417,960 City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
96 Note 13 – Net Position and Fund Balances (Continued)

B. Fund Financial Statements
Fund Balance Classification:

At June 30, 2025, 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

$ 52,628 $ - $ - $ - $ - $52,628 303,605 - - 2,297 50,312 356,214
356,233 - - 2,297 50,312 408,842

- 6,033,175 - - - 6,033,175
- - - 10,339,393 - 10,339,393
- - - - 3,425,402 3,425,402
- - - - 10,691,870 10,691,870
- - - - (79,230) (79,230)
- - 301,893 - 6,515,632 6,817,525
- - - - 62,900 62,900
- 6,033,175 301,893 10,339,393 20,616,574 37,291,035

16,876,424 - - - - 16,876,424
11,299,375 - - - - 11,299,375
7,940,813 - - - - 7,940,813
36,116,612 - - - - 36,116,612

7,038,597 - - - - 7,038,597
14,267,131 - - - - 14,267,131
5,529,793 - - - - 5,529,793
3,441,053 - - - - 3,441,053
30,276,574 - - - - 30,276,574
300,000 - - (1,204) - 298,796
$67,049,419 $6,033,175 $ 301,983 $ 10,340,486 $20,666,886 $104,391,859

City of Gardena
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
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, 2025, the City’s percentage interest is 45.07%.

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 $56,502,247 as of June 30, 2025.

Note 16 – Risk Due to Additional Spending

Since 2000, the City of Gardena has contracted with Lo s Angeles County to provide fi re protection and emergency services. In July 2023, the Los Angeles County Fire Depart ment requested that the City amend its contract to include an annual cost share of $1.7 million going forward. This adjustment would result in an additional $1.7 million plus 5%-6% increase each year in expenditure for the General Fund. Th e City is currently negotiating with the Los Angeles County Fire Department and evaluating all available options.

Note 17 – Subsequent Events

On September 28, 2024, SB549: Gaming Tr ial Nations Access to Justic Act was signed into law. This law allows Indian tribes to bring legal action against California licensed card clubs. A court declaration in favor of the Indian tribe would stop almost all controlled games at local card clubs like the Hustler Casino and the Lucky Lady Casino in Gardena. The potential adverse financial effect to th e City is estimated to be around $8-$10 million per fiscal year for the General Fund. In October 2025, the court dismissed the case, but the plaintiff is appealing.

Management has evaluated subsequent events through Decemb er 4, 2025, 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, 2025

(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, 2025

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

Taxes 71,987,230 $ 67,906,603 $ 72,234,462 $ 4,327,859 $ Licenses and permits 2,047,130 1,968,790 1,967,596 (1,194) Intergovernmental 452,500 537,500 501,611 (35,889) Charges for services 6,445,052 5,461,996 5,941,699 479,703 Fines, forfeitures and penalties 875,000 1,220,929 1,017,194 (203,735) Use of money and property 1,147,050 355,000 3,384,334 3,029,334 Miscellaneous 502,036 502,286 517,710 15,424 Total revenues 83,455,998 77,953,104 85,564,606 7,611,502 EXPENDITURES:

Current:

General government:

City clerk 641,173 761,567 587,413 174,154 City treasurer 92,546 81,686 108,102 (26,416) Executive office 1,945,742 1,864,266 1,509,598 354,668 Administrative services 3,615,151 3,356,682 3,123,429 233,253 Non-departmental 1,753,662 3,793,859 2,418,083 1,375,776 Public safety:

Police 37,490,259 36,096,596 37,446,965 (1,350,369) L.A. County Fire Department 14,645,597 13,493,514 13,907,982 (414,468) Public works 8,333,344 7,911,981 7,853,200 58,781 Recreation and human services 6,864,213 5,083,378 5,659,246 (575,868) Community development 3,592,599 3,263,654 3,513,725 (250,071) Capital outlay 1,348,472 1,105,607 1,886,398 (780,791) Debt service:

Principal retirement - - 536,927 (536,927) Interest and fiscal charges -
- 89,726 (89,726)
Total expenditures 80,322,758 76,812,790 78,640,794 (1,828,004)

REVENUES OVER (UNDER)
EXPENDITURES 3,133,240 1,140,314 6,923,812 5,783,498

OTHER FINANCING
SOURCES (USES):

Transfers in 11,358,940 11,272,245 3,614,730 (7,657,515) Transfers out (12,690,623) (12,428,759) (3,591,816) 8,836,943 Issuance of subscription debt - - 485,710 485,710 Total other financing sources (uses) (1,331,683) (1,156,514) 508,624 1,665,138 NET CHANGE IN FUND BALANCE 1,801,557 (16,200) 7,432,436 7,448,636 FUND BALANCE:

Beginning of year 59,616,983
End of year 67,049,419 $
City of Gardena
Required Supplementary Information (Unaudited)
Budgetary Comparison Schedule - General Fund
For the Year Ended June 30, 2025
Budgeted Amounts
101
Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Intergovernmental - $ - $ 528,716$ 528,716 $ Charges for services 46,000 - 157,000 157,000 Fines, forfeitures and penalties 486,000 790,000 11,251 (778,749) Use of money and property 30,000 20,000 161,308 141,308 Miscellaneous 3,800,000 4,000,000 137,542 (3,862,458) Total revenues 4,362,000 4,810,000 995,817 (3,814,183) EXPENDITURES:

Current:

Public works 4,000,000 4,000,000 - 4,000,000 Recreation and human services - - 373,912 (373,912) Community development 30,000 4,758,000 25,567 4,732,433 Capital outlay -
- 79,459 (79,459)
Total expenditures 4,030,000 8,758,000 478,938 8,279,062

REVENUES OVER (UNDER)
EXPENDITURES 332,000 (3,948,000) 516,879 4,464,879

OTHER FINANCING
SOURCES (USES):

Transfers in - - 4,048 4,048 Transfers out (9,432,178) (4,656,000) (459,492) 4,196,508 Total other financing sources (uses) (9,432,178) (4,656,000) (455,444) 4,200,556 NET CHANGE IN FUND BALANCE (9,100,178) (8,604,000) 61,435 8,665,435 FUND BALANCE:

Beginning of year 5,971,740
End of year 6,033,175 $
City of Gardena
Required Supplementary Information (Unaudited)
Budgetary Comparison Schedule - Economic Development Grants Special Revenue Fund For the Year Ended June 30, 2025
Budgeted Amounts
102
City of Gardena
Required Supplementary Information (Unaudited)
Notes to the Budgetary Comparison Schedule
For the Year Ended June 30, 2025
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, 2025, 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 2014-15 2015-16 2016-17 2017-18 2018-19 Total pension liability
Service cost 2,672,238 $ 2,740,901 $ 3,129,118 $ 3,173,762 $ 3,162,100 $ Interest 10,024,136 10,454,955 10,781,297 11,153,035 11,820,982 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 3,672,690 Benefit payments, including refunds
of employee contributions (6,931,772)
(7,193,626) (7,669,492) (8,486,647) (8,816,825) Net change in total pension liability 2,920,315 5,965,855 14,403,800 5,184,605 9,838,947 Total pension liability - beginning 136,008,515 138,928,830 144,894,685 159,298,485 164,483,090 Total pension liability - ending (a) 138,928,830$ 144,894,685 $ 159,298,485 $ 164,483,090 $ 174,322,037 $ Pension fiduciary net position
Contributions - employer 2,016,919 $ 2,317,060 $ 2,645,234 $ 3,015,630 $ 3,688,807 $ Contributions - employee 1,242,246 1,321,368 1,327,795 1,405,045 1,457,546 Net investment income 2,536,012 604,797 12,260,577 10,029,125 8,130,102 Benefit payments, including refunds
of employee contributions (6,931,772) (7,193,626) (7,669,492) (8,486,647) (8,816,825) Net plan to plan resource movement - (1,234) 11,249 (291) - Administrative expense (128,654) (69,658) (164,291) (186,505) (89,280) Other miscellaneous income/(expense)
1 - - - (354,176) 291 Net change in plan fiduciary net position (1,265,249) (3,021,293) 8,411,072 5,422,181 4,370,641 Plan fiduciary net position - beginning2
115,562,210 114,296,961 111,275,668 119,686,740 125,108,921 Plan fiduciary net position - ending (b) 114,296,961$ 111,275,668 $ 119,686,740 $ 125,108,921 $ 129,479,562 $ Plan net pension liability - ending (a)-(b) 24,631,869$ 33,619,017 $ 39,611,745 $ 39,374,169 $ 44,842,475 $ Plan fiduciary net position as a percentage
of the total pension liability 82.27% 76.80% 75.13% 76.06% 74.28% Covered payroll 18,094,788$ 19,012,911 $ 19,306,012 $ 19,929,430 $ 20,102,352 $ Plan net pension liability as a percentage
of covered payroll 136.13% 176.82% 205.18% 197.57% 223.07% 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, 2025
Last Ten Fiscal Years
California Public Employees' Retirement System ("CalPERS") Miscellaneous Plan Required Supplementary Information (Unaudited)
104
Measurement period 2019-20 2020-21 2021-22 2022-23 2023-24 Total pension liability
Service cost 3,329,543 $ 3,190,091 $ 3,211,338 $ 3,290,767 $ 3,573,524 $ Interest 12,201,071 12,451,995 12,420,366 12,911,242 13,456,137 Changes of benefit terms - - - 274,039 - Change in assumptions - - 5,350,605 - - Difference between expected
and actual experience (593,300) (1,841,509) (4,506,679) 1,931,594 2,839,560 Benefit payments, including refunds
of employee contributions (9,498,332)
(10,721,565) (10,568,643) (10,957,147) (11,614,714) Net change in total pension liability 5,438,982 3,079,012 5,906,987 7,450,495 8,254,507 Total pension liability - beginning 174,322,037 179,761,019 182,840,031 188,747,018 196,197,513 Total pension liability - ending (a) 179,761,019$ 182,840,031 $ 188,747,018 $ 196,197,513 $ 204,452,020 $ Pension fiduciary net position
Contributions - employer 4,397,533 $ 46,940,155 $ 2,100,703 $ 1,934,460 $ 1,896,803 $ Contributions - employee 1,611,737 1,203,298 1,242,880 1,594,067 1,898,079 Net investment income 6,417,192 35,069,162 (15,201,569) 11,006,934 17,321,160 Benefit payments, including refunds
of employee contributions (9,498,332) (10,721,565) (10,568,643) (10,957,147) (11,614,714) Net plan to plan resource movement - - - (8,010) (2,486) Administrative expense (182,534) (132,085) (127,444) (133,856) (150,915) Other miscellaneous income/(expense)
1 - - - - - Net change in plan fiduciary net position 2,745,596 72,358,965 (22,554,073) 3,436,448 9,347,927 Plan fiduciary net position - beginning2
129,479,562 132,225,158 204,584,123 182,030,050 185,466,498 Plan fiduciary net position - ending (b) 132,225,158$ 204,584,123 $ 182,030,050 $ 185,466,498 $ 194,814,425 $ Plan net pension liability - ending (a)-(b) 47,535,861$ (21,744,092) $ 6,716,968 $ 10,731,015 $ 9,637,595 $ Plan fiduciary net position as a percentage
of the total pension liability 73.56% 111.89% 96.44% 94.53% 95.29% Covered payroll 21,343,226$ 20,567,963 $ 18,319,096 $ 19,110,147 $ 20,897,800 $ Plan net pension liability as a percentage
of covered payroll 222.72% -105.72% 36.67% 56.15% 46.12% 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, 2025
Last Ten Fiscal Years
105
Measurement period 2014-15 2015-16 2016-17 2017-18 2018-19 City's Proportion of the Net
Pension Liability/(Asset) 0.65832% 0.62924% 0.61206% 0.62701% 0.55899% City's Proportionate share
of the Net Pension Liability/(Asset) 45,186,413 $ 54,448,433 $ 60,699,742 $ 60,419,894 $ 57,280,320 $ City's Covered payroll 9,351,143 $ 10,491,839 $ 10,435,515 $ 11,232,919 $ 12,156,428 $ City's Proportionate Share of the Net
Pension Liability/(Asset) as a
Percentage of its covered payroll 483.22% 518.96% 581.67% 537.88% 471.19% Plan's Proportionate Share of the
Fiduciary Net Position as a
Percentage of the Total Pension Liability 77.40% 68.79% 68.27% 69.50% 72.58% 2019-20 2020-21 2021-22 2022-23 2023-24
City's Proportion of the Net
Pension Liability/(Asset) 0.56472% -0.50839% 0.10940% 0.25257% 0.23638% City's Proportionate share
of the Net Pension Liability/(Asset) 61,443,923 $ (27,495,287) $ 12,636,888 $ 18,879,716 $ 17,234,379 $ City's Covered payroll 11,992,232 $ 11,768,395 $ 12,233,930 $ 13,043,131 $ 14,136,619 $ City's Proportionate Share of the Net
Pension Liability/(Asset) as a
Percentage of its covered payroll 512.36% -233.64% 103.29% 144.75% 121.91% Plan's Proportionate Share of the
Fiduciary Net Position as a
Percentage of the Total Pension Liability 72.05% 111.98% 94.86% 74.87% 76.66% 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, 2025
Last Ten Fiscal Years
106
2014-15 2015-16 2016-17 2017-18 2018-19
Actuarially determined contribution 2,016,919$ 2,317,060 $ 2,645,234 $ 3,015,630 $ 3,688,807 $ Contributions in relation to the
actuarially determined contributions 1
(2,016,919)$ (2,317,060) $ (2,645,234) $ (3,015,630) $ (3,688,807) $ Contribution deficiency (excess) - $ - $ - $ - $ - $ Covered payroll 2 18,094,788$ 19,012,911 $ 19,306,012 $ 19,929,430 $ 20,102,352 $ Contributions as a percentage of
covered employee payroll 11.15% 12.19% 13.70% 15.13% 18.35% 2019-20 2020-21 3 2021-22 2022-23 2023-24
Actuarially determined contribution 4,397,533$ 4,625,188 $ 2,100,703 $ 1,934,460 $ 1,896,803 $ Contributions in relation to the
actuarially determined contributions 1
(4,397,533)$ (46,910,155) $ (2,100,703) $ (1,934,460) $ (1,896,803) $ Contribution deficiency (excess) - $ (42,284,967)$ - $ - $ - $ Covered payroll 2 21,343,226$ 20,567,963 $ 18,319,096 $ 19,110,147 $ 20,897,800 $ Contributions as a percentage of
covered employee payroll 20.60% 228.07% 11.47% 10.12% 9.08% 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, 2025
Last Ten Fiscal Years
107
2015-16 2016-17 2017-18 2018-19 2 2019-20
Actuarially determined contribution 4,917,350$ 5,401,275 $ 6,093,811 $ 6,617,559 $ 6,185,808 $ Contributions in relation to the
actuarially determined contributions (4,917,350)$ (5,401,275) $ (6,093,811) $ (12,677,559) $ (6,185,808) $ Contribution deficiency (excess) - $ - $ - $ (6,060,000)$ - $ Covered payroll 1 10,491,839$ 10,435,515 $ 11,232,919 $ 12,156,428 $ 21,343,226 $ Contributions as a percentage of
covered employee payroll 46.87% 51.76% 54.25% 104.29% 28.98% 2020-21 3 2021-22 2022-23 2023-24 2024-25
Actuarially determined contribution 8,595,603$ 2,950,604 $ 3,126,759 $ 2,994,848 $ 4,153,900 $ Contributions in relation to the
actuarially determined contributions (60,369,859)$ (2,950,604) $ (3,126,759) $ (2,994,848) $ (4,153,900) $ Contribution deficiency (excess) (51,774,256)$ - $ - $ - $ - $ Covered payroll 1 11,768,395$ 12,233,930 $ 12,576,480 $ 14,136,619 $ 15,369,014 $ Contributions as a percentage of
covered employee payroll 512.98% 24.12% 24.86% 21.19% 27.03% 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 Assumptions.

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, 2025
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, 2025
Required Supplementary Information (Unaudited)
Last Ten Fiscal Years
109
For the Measurement Period: 2021-22 2022-23 2023-24
Total OPEB Liability
Service cost 2,815,579 $ 2,096,595 $ 2,150,896 $ Transfers to Sewer - - - Interest 1,688,245 2,325,252 2,419,492 Changes in benefit terms - - - Changes in assumptions (14,060,251) (980,157) (8,362,730) Actual and expected experience difference 303,548 - 4,175,127 Benefit payments (2,286,676) (2,729,974) (3,060,971) Other - funding rates used by benefits paid - - - Net change in total OPEB liability (11,539,555) 711,716 (2,678,186) Total OPEB liability - beginning 76,481,166 64,941,611 65,653,327 Total OPEB liability - ending (a) 64,941,611$ 65,653,327 $ 62,975,141 $ Plan Fiduciary Net Position
Contribution - employer 2,286,676 $ 4,479,974 $ 3,810,971 $ Contribution - employee - - - Net investment income (26,789) 11,129 211,315 Benefit payments, including refunds (2,286,676) (2,729,974) (3,060,971) Administrative expense (51) (50) (637) Other changes - - - Net change in plan fiduciary net position (26,840) 1,761,079 960,678 Plan fiduciary net position - beginning 200,187 173,347 1,934,426 Plan fiduciary net position - ending (b) 173,347 1,934,426 $ 2,895,104 $ Net OPEB liability (asset) - ending (a)-(b) 64,768,264$ 63,718,901 $ 60,080,037 $ Fiduciary net position as a % of
total OPEB liability 0.27% 2.95% 4.60%
Covered payroll 24,154,486 25,140,436 29,862,164 Net OPEB liability as a
percentage of payroll 268.14% 253.45% 201.19%
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, 2025
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.

For the Year Ended June 30, 2025
Last Ten Fiscal Years
GTrans Retiree Healthcare Plan
City of Gardena
Required Supplementary Information (Unaudited)
Schedule of Changes in the Net OPEB Liability and Related Ratios 111
For the Measurement Period: 2021-22 2022-23 2023-24
Total OPEB Liability
Service cost 300,182 $ 315,938 $ 338,423 $ Interest 718,462 794,147 826,647 Changes in benefit terms (873,696) - - Changes in assumptions (475,092) - 992,561 Actual and expected experience difference 1,378,033 - 628,776 Benefit payments - (574,545) (651,738) Other - funding rates used by benefits paid - - - Net change in total OPEB liability 1,047,889 535,540 2,134,669 Total OPEB liability - beginning 11,625,436 12,673,325 13,208,865 Total OPEB liability - ending (a) 12,673,325$ 13,208,865 $ 15,343,534 $ Plan Fiduciary Net Position
Contribution - employer 873,696 $ 574,545 $ 651,738 $ Contribution - employee - - - Net investment income 357,018 317,552 575,646 Benefit payments, including refunds (873,696) (574,545) (651,738) Administrative expense (1,447) (1,437) (1,715) Other changes (1,121,430) - - Net change in plan fiduciary net position (765,859) 316,115 573,931 Plan fiduciary net position - beginning 5,713,012 4,947,153 5,263,268 Plan fiduciary net position - ending (b) 4,947,153 5,263,268 $ 5,837,199 $ Net OPEB liability (asset) - ending (a)-(b) 7,726,172$ 7,945,597 $ 9,506,335 $ Fiduciary net position as a % of
total OPEB liability 39.04% 39.85% 38.04%
Covered payroll 10,652,412 9,500,663 11,337,927 Net OPEB liability as a
percentage of payroll 72.53% 83.63% 83.85%
For the Year Ended June 30, 2025
Last Ten Fiscal Years
GTrans Retiree Healthcare Plan
City of Gardena
Required Supplementary Information (Unaudited)
Schedule of Changes in the Net OPEB Liability and Related Ratios (Continued) 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.

For the Year Ended June 30, 2025
Last Ten Fiscal Years
Sewer Retiree Healthcare Plan
City of Gardena
Required Supplementary Information (Unaudited)
Schedule of Changes in the Net OPEB Liability and Related Ratios 113
For the Measurement Period: 2021-22 2022-23 2023-24
Total OPEB Liability
Service cost 32,554 $ 26,422 $ 10,819 $ Transfers from the Governmental Activities - - - Interest 12,283 11,207 11,855 Changes in benefit terms - - - Changes in assumptions (71,603) (5,457) 6,997 Actual and expected experience difference (214,606) - (92,831) Benefit payments - (9,211) (7,489) Other - funding rates used by benefits paid - - - Net change in total OPEB liability (241,372) 22,961 (70,649) Total OPEB liability - beginning 536,098 294,726 317,687 Total OPEB liability - ending (a) 294,726 $ 317,687 $ 247,038 $ 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 $ 247,038 $ Fiduciary net position as a % of
total OPEB liability 0.00% 0.00% 0.00%
Covered payroll 386,209 599,215 675,219 Net OPEB liability as a
percentage of payroll 76.31% 53.02% 36.59%
For the Year Ended June 30, 2025
Last Ten Fiscal Years
Sewer Retiree Healthcare Plan
City of Gardena
Required Supplementary Information (Unaudited)
Schedule of Changes in the Net OPEB Liability and Related Ratios (Continued) 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 2024-25 Actuarially determined contributions 4,211,000$ 5,012,263 $ 5,150,100 $ 6,158,729 $ Contributions in relation to the
actuarially determined contribution (2,286,676) (4,966,034) (4,479,974) (3,810,971) Contribution deficiency (excess) 1,924,324$ 46,229 $ 670,126 $ 2,347,758 $ Covered payroll 24,154,486 $ 24,818,734 $ 29,862,164 $ 30,703,972 $ Contributions as a percentage
of covered payroll 9.47% 20.01% 15.00% 12.41%
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 2023-24 were derived from the June 30, 2023 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, 2025
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 2024-25 Actuarially determined contributions 899,000$ 954,864 $ 981,123 $ 1,286,603 $ Contributions in relation to the
actuarially determined contribution (873,696) (724,778) (574,545) (651,738) Contribution deficiency (excess) 25,304 $ 230,086 $ 406,578 $ 634,865 $ Covered payroll 10,484,293 $ 10,954,086 $ 11,337,927 $ 11,764,091 $ Contributions as a percentage
of covered payroll 8.33% 6.62% 5.07% 5.54%
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 2023-24 were derived from the June 30, 2023 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, 2025
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 2024-25 Actuarially determined contributions 48,000$ 32,004 $ 74,388 $ 24,046 $ Contributions in relation to the
actuarially determined contribution - (10,147) - (7,489.00) Contribution deficiency (excess) 48,000 $ 21,857 $ 74,388 $ 16,557.00$ Covered payroll 386,578 $ 397,209 $ 675,219 $ 712,031 $ Contributions as a percentage
of covered payroll 0.00% 2.55% 0.00% 1.05%
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 2023-24 were derived from the June 30, 2023 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, 2025
Last Ten Fiscal Years
117
118

City of Gardena

Annual Comprehensive Financial Report
For the Year Ended June 30, 2025

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119

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

Capital outlay - $ - $ 13,297,684$ 13,297,684 $ Total expenditures - - 13,297,684 13,297,684

OTHER FINANCING
SOURCES (USES):

Transfers in 71,530,102 51,230,972 13,297,683 (37,933,289) Total other financing sources (uses) 71,530,102 51,230,972 13,297,683 (37,933,289) NET CHANGE IN FUND BALANCE 71,530,102$ 51,230,972 $ (1) (51,230,973)$ FUND BALANCE:

Beginning of year 301,894
End of year 301,893 $
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, 2025
120
121

City of Gardena

Annual Comprehensive Financial Report
For the Year Ended June 30, 2025

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122

City of Gardena

Annual Comprehensive Financial Report
For the Year Ended June 30, 2025

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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 746,261 $ 3,845,868$ 6,016,007 $ 2,797,419 $ 710,218 $ Receivables:

Accounts - - 4,058 8,655 26,622 Taxes 15,177 - 436,770 - - Prepaid items and deposits - - 4,812 - 45,500 Due from other governments -
- - - 30,693 Total assets 761,438$ 3,845,868$ 6,461,647 $ 2,806,074 $ 813,033 $ Liabilities:

Accounts payable 57,177 $ - $ 311,729$ - $ 119,266$ Salaries and benefits payable - 1,537 1,828 - 2,317 Due to other funds - - - - - Due to other governments - - - - - Retention payable - - - - - Total liabilities 57,177 1,537 313,557 - 121,583 Deferred inflows of resources:

Unavailable revenue - - - - 26,622 Total deferred inflows of resources - - - - 26,622 Fund Balances (Deficits):

Nonspendable - - 4,812 - 45,500 Restricted 704,261 3,844,331 6,143,278 2,806,074 619,328 Total fund balances (deficits) 704,261 3,844,331 6,148,090 2,806,074 664,828 Total liabilities, deferred inflows
and fund balances 761,438$ 3,845,868$ 6,461,647 $ 2,806,074 $ 813,033 $ ASSETS

AND FUND BALANCES

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,
Special Revenue Funds
City of Gardena
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
124
Community Total
Public Human Development American Nonmajor
Works Services Block Grant Rescue Governmental
Grants Grants (CDBG) Plan Funds
Cash and investments 2,212,355 $ 1,094,450 $ - $ - $ 17,422,578$ Receivables:

Accounts 104,370 42,660 79,230 - 265,595 Taxes 14 - - - 451,961 Prepaid items and deposits - - - - 50,312 Due from other governments 4,505,286
73,273 - - 4,609,252 Total assets 6,822,025$ 1,210,383 $ 79,230 $ - $ 22,799,698$ Liabilities:

Accounts payable 3,589 $ 53,060 $ 57,403 $ - $ 602,224$ Salaries and benefits payable 2,640 1,600 2,034 - 11,956 Due to other funds - - 17,365 - 17,365 Due to other governments - 1,092,823 - - 1,092,823 Retention payable - - 2,428 - 2,428 Total liabilities 6,229 1,147,483 79,230 - 1,726,796 Deferred inflows of resources:

Unavailable revenue 300,164 - 79,230 - 406,016 Total deferred inflows of resources 300,164 - 79,230 - 406,016 Fund Balances:

Nonspendable - - - - 50,312 Restricted 6,515,632 62,900 (79,230) - 20,616,574 Total fund balances (deficits) 6,515,632 62,900 (79,230) - 20,666,886 Total liabilities, deferred inflows
and fund balances 6,822,025$ 1,210,383 $ 79,230 $ - $ 22,799,698$ ASSETS

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,

AND FUND BALANCES
City of Gardena
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2025
Special Revenue Funds
125
Consolidated Prop C Public
Lighting Local Gas Asset Safety
District Return Tax Forfeiture Grants
REVENUES:

Taxes 884,566 $ 1,301,704$ - $ - $ - $ Intergovernmental - - 3,413,631 1,987,793 703,465 Fines, forfeitures, and penalties - - - - 35,381 Use of money and property 23,332 135,666 215,191 47,862 29,308 Miscellaneous - - 9,942 - - Total revenues 907,898 1,437,370 3,638,764 2,035,655 768,154 EXPENDITURES:

Current:

General government - - 32 - - Public safety - - - - 286,211 Public works 780,315 55,335 1,262,338 - - Recreation and human services - - - - - Community development - - - - - Capital outlay - - - - 47,579 Debt service:

Principal retirement 11,915 - - - 45,500 Interest and fiscal charges - - - - - Total expenditures 792,230 55,335 1,262,370 - 379,290

REVENUES OVER
(UNDER) EXPENDITURES 115,668 1,382,035 2,376,394 2,035,655 388,864

OTHER FINANCING
SOURCES (USES):

Transfers in - - - - - Transfers out (112,954) (614,850) (1,126,342) - - Total other financing
sources (uses) (112,954)
(614,850) (1,126,342) - -
NET CHANGE IN FUND BALANCE 2,714 767,185 1,250,052 2,035,655 388,864 Fund balances, beginning of year 701,547 3,077,146 4,898,038 770,419 275,964 Fund balances (deficits), end of year 704,261$ 3,844,331$ 6,148,090 $ 2,806,074 $ 664,828 $ Special Revenue Funds
City of Gardena
Nonmajor Governmental Funds
For the Year Ended June 30, 2025
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 2,182,901 $ - $ - $ - $ 4,369,171$ Intergovernmental 6,647,685 814,058 1,379,564 1,547,465 16,493,661 Fines, forfeitures, and penalties - - - - 35,381 Use of money and property 249,661 41,682 - 47,867 790,569 Miscellaneous - 51,701 - - 61,643 Total revenues 9,080,247 907,441 1,379,564 1,595,332 21,750,425 EXPENDITURES:

Current:

General government - - - - 32 Public safety - - - - 286,211 Public works 494,007 - - - 2,591,995 Recreation and human services 53,869 910,660 - - 964,529 Community development - - 1,154,922 - 1,154,922 Capital outlay - - - - 47,579 Debt service:

Principal retirement 16,827 3,842 - - 78,084 Interest and fiscal charges 905 - - - 905 Total expenditures 565,608 914,502 1,154,922 - 5,124,257

REVENUES OVER
(UNDER) EXPENDITURES 8,514,639 (7,061) 224,642 1,595,332 16,626,168

OTHER FINANCING
SOURCES (USES):

Transfers in 12,610 48,024 - - 60,634 Transfers out (7,406,173) (10,073) (409,380) (1,595,332) (11,275,104) Total other financing
sources (uses) (7,393,563)
37,951 (409,380) (1,595,332) (11,214,470) NET CHANGE IN FUND BALANCE 1,121,076 30,890 (184,738) - 5,411,698 Fund balances (deficits), beginning of year 5,394,556 32,010 105,508 - 15,255,188 Fund balances (deficits), end of year 6,515,632$ 62,900 $ (79,230) $ - $ 20,666,886$ Special Revenue Funds
City of Gardena
Nonmajor Governmental Funds
For the Year Ended June 30, 2025
Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) 127
Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Taxes 907,157 $ 885,031 $ 884,566 $ (465) $ Use of money and property 5,000 2,500 23,332 20,832 Total revenues 912,157 887,531 907,898 20,367 EXPENDITURES:

Current:

Public works 842,894 820,769 780,315 40,454 Debt service:

Principal retirement 14,296
14,296 11,915 2,381
Total expenditures 857,190 835,065 792,230 42,835

REVENUES OVER (UNDER)
EXPENDITURES 54,967 52,466 115,668 63,202

OTHER FINANCING
SOURCES (USES):

Transfers out (294,600) (298,000) (112,954) 185,046 Total other financing sources (uses) (294,600) (298,000) (112,954) 185,046 NET CHANGE IN FUND BALANCE (239,633)$ (245,534) $ 2,714 248,248$ FUND BALANCE:

Beginning of year 701,547
End of year 704,261 $
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, 2025
Budgeted Amounts
128
Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Taxes 1,395,362 $ 1,437,090 $ 1,301,704 $ (135,386) $ Use of money and property 20,000 20,000 135,666 115,666 Total revenues 1,415,362 1,457,090 1,437,370 (19,720) EXPENDITURES:

Current:

Public works 31,151 41,228 55,335 (14,107) Total expenditures 31,151 41,228 55,335 (14,107)

REVENUES OVER (UNDER)
EXPENDITURES 1,384,211 1,415,862 1,382,035 (33,827)

OTHER FINANCING
SOURCES (USES):

Transfers out (4,000,000) (4,240,117) (614,850) 3,625,267 Total other financing sources (uses) (4,000,000) (4,240,117) (614,850) 3,625,267 NET CHANGE IN FUND BALANCE (2,615,789)$ (2,824,255) $ 767,185 3,591,440$ FUND BALANCE:

Beginning of year 3,077,146
End of year 3,844,331 $
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, 2025
Budgeted Amounts
129
Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Intergovernmental 3,281,883 $ 3,318,681 $ 3,413,631 $ 94,950 $ Use of money and property 40,000 27,500 215,191 187,691 Miscellanous - - 9,942 9,942 Total revenues 3,321,883 3,346,181 3,638,764 292,583 EXPENDITURES:

Current:

General government 10,284 16,297 32 16,265 Public works 817,686
574,300 1,262,338 (688,038)
Total expenditures 827,970 590,597 1,262,370 (671,773)

REVENUES OVER (UNDER)
EXPENDITURES 2,493,913 2,755,584 2,376,394 (379,190)

OTHER FINANCING
SOURCES (USES):

Transfers out (5,952,058) (7,249,000) (1,126,342) 6,122,658 Total other financing sources (uses) (5,952,058) (7,249,000) (1,126,342) 6,122,658 NET CHANGE IN FUND BALANCE (3,458,145)$ (4,493,416) $ 1,250,052 5,743,468 $ FUND BALANCE:

Beginning of year 4,898,038
End of year 6,148,090 $
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, 2025
Budgeted Amounts
130
Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Intergovernmental - $ - $ 1,987,793$ 1,987,793 $ Use of money and property - - 47,862 47,862 Total revenues - - 2,035,655 2,035,655 EXPENDITURES:

Current:

Public safety - 150,000 - 150,000 Total expenditures - 150,000 - 150,000 NET CHANGE IN FUND BALANCE -$ (150,000)$ 2,035,655 2,185,655 $ FUND BALANCE:

Beginning of year 770,419
End of year 2,806,074 $
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, 2025
Budgeted Amounts
131
Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Intergovernmental 100,000 $ 276,126 $ 703,465 $ 427,339 $ Fines, forfeitures, and penalities 75,500 75,000 35,381 (39,619) Use of money and property - 500 29,308 28,808 Total revenues 175,500 351,626 768,154 416,528 EXPENDITURES:

Current:

Public safety 100,000 276,126 286,211 (10,085) Capital outlay - - 47,579 (47,579) Principal retirement -
- 45,500 (45,500)
Total expenditures 100,000 276,126 379,290 (103,164)

REVENUES OVER (UNDER)
EXPENDITURES 75,500 75,500 388,864 313,364

OTHER FINANCING
SOURCES (USES):

Transfers out (75,500) (75,500) - 75,500 Total other financing sources (uses) (75,500) (75,500) - 75,500 NET CHANGE IN FUND BALANCE -$ - $ 388,864 388,864 $ FUND BALANCE:

Beginning of year 275,964
End of year 664,828 $
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, 2025
Budgeted Amounts
132
Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Taxes 2,334,252 $ 2,401,007 $ 2,182,901 $ (218,106) $ Intergovernmental 28,898,106 18,595,767 6,647,685 (11,948,082) Use of money and property 40,000 23,000 249,661 226,661 Total revenues 31,272,358 21,019,774 9,080,247 (11,939,527) EXPENDITURES:

Current:

Public works 618,992 730,319 494,007 236,312 Recreation and human services 25,000 10,000 53,869 (43,869) Capital outlay - 31,900 - 31,900 Debt service:

Principal retirement 38,600 - 16,827 (16,827) Interest and fiscal charges -
- 905 (905)
Total expenditures 682,592 772,219 565,608 206,611

REVENUES OVER (UNDER)
EXPENDITURES 30,589,766 20,247,555 8,514,639 (11,732,916)

OTHER FINANCING
SOURCES (USES):

Transfers in - - 12,610 12,610 Transfers out (22,375,512) (16,321,767) (7,406,173) 8,915,594 Total other financing sources (uses) (22,375,512) (16,321,767) (7,393,563) 8,915,594 NET CHANGE IN FUND BALANCE 8,214,254$ 3,925,788 $ 1,121,076 (2,817,322) $ FUND BALANCE:

Beginning of year 5,394,556
End of year 6,515,632 $
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, 2025
Budgeted Amounts
133
Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Intergovernmental 857,257 $ 4,322,192 $ 814,058 $ (3,508,134)$ Use of money and property - 4,000 41,682 37,682 Miscellaneous 30,000 31,000 51,701 20,701 Total revenues 887,257 4,357,192 907,441 (3,449,751) EXPENDITURES:

Current:

Recreation and human services 923,557 4,389,976 910,660 3,479,316 Debt service:

Principal retirement -
- 3,842 (3,842)
Total expenditures 923,557 4,389,976 914,502 3,475,474

REVENUES OVER (UNDER)
EXPENDITURES (36,300) (32,784) (7,061) 25,723

OTHER FINANCING
SOURCES (USES):

Transfers in 36,300 32,784 48,024 15,240 Transfers out - - (10,073) (10,073) Total other financing sources (uses) 36,300 32,784 37,951 5,167 NET CHANGE IN FUND BALANCE -$ - $ 30,890 30,890 $ FUND BALANCE:

Beginning of year 32,010
End of year 62,900 $
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, 2025
Budgeted Amounts
134
Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Intergovernmental 1,235,790 $ 592,299 $ 1,379,564 $ 787,265 $ Use of money and property - - - - Total revenues 1,235,790 592,299 1,379,564 787,265 EXPENDITURES:

Current:

Community development 592,299 592,299 1,154,922 (562,623) Total expenditures 592,299 592,299 1,154,922 (562,623)

REVENUES OVER (UNDER)
EXPENDITURES 643,491 - 224,642 224,642

OTHER FINANCING
SOURCES (USES):

Transfers out (643,491) - (409,380) (409,380) Total other financing sources (uses) (643,491) - (409,380) (409,380) NET CHANGE IN FUND BALANCE -$ - $ (184,738) (184,738) $ FUND BALANCE (DEFICIT):

Beginning of year 105,508
End of year (79,230) $
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, 2025
Budgeted Amounts
135
Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Intergovernmental 1,586,364 $ 2,453,486 $ 1,547,465 $ (906,021) $ Use of money and property - - 47,867 47,867 Total revenues 1,586,364 2,453,486 1,595,332 (858,154)

OTHER FINANCING
SOURCES (USES):

Transfers out (1,586,364) (2,453,486) (1,595,332) 858,154 Total other financing sources (uses) (1,586,364) (2,453,486) (1,595,332) 858,154 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, 2025
Budgeted Amounts
136
137

City of Gardena

Annual Comprehensive Financial Report
For the Year Ended June 30, 2025

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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 1,954,124$ 229,796 $ 2 $ - $ Prepaid items and deposits - 1,091 1,206 - Total assets 1,954,124$ 230,887 $ 1,208 $ - $ Liabilities:

Due to other funds 22,511 $ 1,091 $ 1,206 $ - $ Total liabilities 22,511 1,091 1,206 - Fund Balances:

Nonspendable - 1,091 1,206 - Restricted 1,931,613 228,705 - - Unassigned - - (1,204) - Total fund balances (deficits) 1,931,613 229,796 2 - Total liabilities
and fund balances 1,954,124$ 230,887 $ 1,208 $ - $ City of Gardena
Combining Balance Sheet
All Debt Service Fund

LIABILITIES

AND FUND BALANCES
June 30, 2025
ASSETS
139
2020 2021
Taxable Pension Lease
Obligation Revenue
Bonds Bonds Total
Cash and investments with fiscal agents 71,213$ 12,837,149$ 15,092,284 $ Prepaid items and deposits - - 2,297 Total assets 71,213$ 12,837,149$ 15,094,581 $ Liabilities:

Due to other funds - $ 4,729,287$ 4,754,095 $ Total liabilities - 4,729,287 4,754,095 Fund Balances:

Nonspendable - - 2,297 Restricted 71,213 8,107,862 10,339,393 Unassigned - - (1,204) Total fund balances (deficits) 71,213 8,107,862 10,340,486 Total liabilities
and fund balances 71,213$ 12,837,149$ 15,094,581 $ City of Gardena
Combining Balance Sheet (Continued)
All Debt Service Fund

LIABILITIES

AND FUND BALANCES
June 30, 2025
ASSETS
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 46,636 9,404 2 - Total revenues 46,636 9,404 2 - EXPENDITURES:

Debt service:

Principal retirement 705,000 130,000 70,000 - Interest and fiscal charges 316,996 56,253 435,929 - Total expenditures 1,021,996 186,253 505,929 -

REVENUES OVER
(UNDER) EXPENDITURES (975,360) (176,849) (505,927) -

OTHER FINANCING
SOURCES (USES):

Transfers in 1,021,996 183,003 507,134 - Transfers out - - - - Total other financing
sources (uses) 1,021,996
183,003 507,134 -
NET CHANGE IN FUND BALANCE 46,636 6,154 1,207 - Fund balances (deficits), beginning of year 1,884,977 223,642 (1,205) - Fund balances (deficits), end of year 1,931,613 $ 229,796 $ 2 $ - $ For the Year Ended June 30, 2025
City of Gardena
Combining Schedule 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 5,952,098 $ - $ 5,952,098$ Use of money and property 23,665 546,573 626,280 Total revenues 5,975,763 546,573 6,578,378 EXPENDITURES:

Debt service:

Principal retirement 3,745,440 490,000 5,140,440 Interest and fiscal charges 2,210,325 455,667 3,475,170 Total expenditures 5,955,765 945,667 8,615,610

REVENUES OVER
(UNDER) EXPENDITURES 19,998 (399,094) (2,037,232)

OTHER FINANCING
SOURCES (USES):

Transfers in 3,667 976,710 2,692,510 Transfers out - (4,742,928) (4,742,928) Total other financing
sources (uses) 3,667
(3,766,218) (2,050,418)
NET CHANGE IN FUND BALANCE 23,665 (4,165,312) (4,087,650) Fund balances (deficits), beginning of year 47,548 12,273,174 14,428,136 Fund balances (deficits), end of year 71,213 $ 8,107,862$ 10,340,486 $ For the Year Ended June 30, 2025
City of Gardena
Combining Schedule 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 - $ - $ 46,636$ 46,636 $ Total revenues - - 46,636 46,636 EXPENDITURES:

Debt service:

Principal retirement 705,000 665,000 705,000 (40,000) Interest and fiscal charges 316,806
360,189 316,996 43,193
Total expenditures 1,021,806 1,025,189 1,021,996 3,193

REVENUES OVER (UNDER)
EXPENDITURES (1,021,806) (1,025,189) (975,360) 49,829

OTHER FINANCING
SOURCES (USES):

Transfers in 1,021,806 1,025,189 1,021,996 (3,193) Total other financing sources (uses) 1,021,806 1,025,189 1,021,996 (3,193) NET CHANGE IN FUND BALANCE -$ - $ 46,636 46,636 $ FUND BALANCE:

Beginning of year 1,884,977
End of year 1,931,613 $
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, 2025
Budgeted Amounts
143
Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Use of money and property - $ - $ 9,404$ 9,404 $ Total revenues - - 9,404 9,404 EXPENDITURES:

Debt service:

Principal retirement 130,000 125,000 130,000 (5,000) Interest and fiscal charges 56,325
62,545 56,253 6,292
Total expenditures 186,325 187,545 186,253 1,292

REVENUES OVER (UNDER)
EXPENDITURES (186,325) (187,545) (176,849) 10,696

OTHER FINANCING
SOURCES (USES):

Transfers in 186,325 187,545 183,003 (4,542) Total other financing sources (uses) 186,325 187,545 183,003 (4,542) NET CHANGE IN FUND BALANCE -$ - $ 6,154 6,154 $ FUND BALANCE:

Beginning of year 223,642
End of year 229,796 $
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, 2025
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 435,784
438,444 435,929 2,515
Total expenditures 505,784 508,444 505,929 2,515

REVENUES OVER (UNDER)
EXPENDITURES (505,784) (508,444) (505,927) 2,517

OTHER FINANCING
SOURCES (USES):

Transfers in 505,784 508,444 507,134 (1,310) Total other financing sources (uses) 505,784 508,444 507,134 (1,310) NET CHANGE IN FUND BALANCE -$ - $ 1,207 1,207 $ FUND BALANCE (DEFICIT):

Beginning of year (1,205)
End of year 2 $
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, 2025
Budgeted Amounts
145
Actual Variance with
Original Final Amounts Final Budget
EXPENDITURES:

Debt service:

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

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

OTHER FINANCING
SOURCES (USES):

Transfers in - 287,950 - (287,950) Total other financing sources (uses) - 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, 2025
Budgeted Amounts
146
Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Charges for services 5,808,797 $ 5,543,563 $ 5,952,098 $ 408,535 $ Use of money and property - - 23,665 23,665 Total revenues 5,808,797 5,543,563 5,975,763 432,200 EXPENDITURES:

Debt service:

Principal retirement 3,599,389 3,285,063 3,745,440 (460,377) Interest and fiscal charges 2,209,408
2,258,500 2,210,325 48,175
Total expenditures 5,808,797 5,543,563 5,955,765 (412,202)

REVENUES OVER (UNDER)
EXPENDITURES - - 19,998 19,998

OTHER FINANCING
SOURCES (USES):

Transfers in - - 3,667 3,667 Total other financing sources (uses) - - 3,667 3,667 NET CHANGE IN FUND BALANCE -$ - $ 23,665 23,665 $ FUND BALANCE:

Beginning of year 47,548
End of year 71,213 $
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, 2025
Budgeted Amounts
147
Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Use of money and property - $ - $ 546,573$ 546,573 $ Total revenues - - 546,573 546,573 EXPENDITURES:

Debt service:

Principal retirement 490,000 490,000 490,000 - Interest and fiscal charges 455,250
478,500 455,667 22,833
Total expenditures 945,250 968,500 945,667 22,833

REVENUES OVER (UNDER)
EXPENDITURES (945,250) (968,500) (399,094) 569,406

OTHER FINANCING
SOURCES (USES):

Transfers in 945,250 943,500 976,710 33,210 Transfers out (11,299,375) (10,944,000) (4,742,928) 6,201,072 Total other financing sources (uses) (10,354,125) (10,000,500) (3,766,218) 6,234,282 NET CHANGE IN FUND BALANCE (11,299,375)$ (10,969,000) $ (4,165,312) 6,803,688 $ FUND BALANCE:

Beginning of year 12,273,174
End of year 8,107,862 $
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, 2025
Budgeted Amounts
148
149

City of Gardena

Annual Comprehensive Financial Report
For the Year Ended June 30, 2025

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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 4,350,453 $ 3,854,499 $ 5,799,957 $ 14,004,909 $ Account receivables 1,134 20,921 3,954 26,009 Prepaid items and deposits - 2,146 27,129 29,275 Total current assets 4,351,587 3,877,566 5,831,040 14,060,193 Total assets 4,351,587 3,877,566 5,831,040 14,060,193

LIABILITIES
Current liabilities:

Accounts payable 474,636 500 4,288 479,424 Accrued liabilities - 13,032 36,129 49,161 Salaries and benefits payable 3,436 3,970 - 7,406 Claims payable, due within one year 1,571,903 1,587,423 776,686 3,936,012 Total current liabilities 2,049,975 1,604,925 817,103 4,472,003 Long-term liabilities:

Claims payable, due in more than one year 3,224,609 10,582,818 - 13,807,427 Total long-term liabilities 3,224,609 10,582,818 - 13,807,427 Total liabilities 5,274,584 12,187,743 817,103 18,279,430

NET POSITION
Unrestricted (deficit) (922,997) (8,310,177) 5,013,937 (4,219,237) Total net position (922,997)$ (8,310,177)$ 5,013,937 $ (4,219,237) $ City of Gardena
Combining Schedule of Net Position
Internal Service Funds
June 30, 2025
151
Liability Workers' Health
Insurance Compnesation Benefit Total
OPERATING REVENUES:

Charges for services 2,779,271 $ 4,155,749 $ 11,298,939 $ 18,233,959 $ Other 1,148 45,985 939,530 986,663 Total operating revenues 2,780,419 4,201,734 12,238,469 19,220,622 OPERATING EXPENSES:

Salaries and benefits 90,341 170,938 - 261,279 Insurance claims 3,801,114 2,728,599 4,672,578 11,202,291 General and administrative 1,374,759 617,984 6,151,155 8,143,898 Other operating expenses 103,413 90,470 198,203 392,086 Total operating expenses 5,369,627 3,607,991 11,021,936 19,999,554 OPERATING INCOME (2,589,208) 593,743 1,216,533 (778,932) NON-OPERATING REVENUES (EXPENSES):

Interest income 100,476 52,299 209,122 361,897 Total non-operating revenues (expenses) 100,476 52,299 209,122 361,897 INCOME BEFORE TRANSFERS (2,488,732) 646,042 1,425,655 (417,035) Transfers in 933,776 1,100,000 - 2,033,776 Transfers out - - (1,433,776) (1,433,776) Total transfers 933,776 1,100,000 (1,433,776) 600,000 Change in net position (1,554,956) 1,746,042 (8,121) 182,965 Net position (deficit), beginning of year 631,959 (10,056,219) 5,022,058 (4,402,202) Net position (deficit), end of year (922,997) $ (8,310,177)$ 5,013,937 $ (4,219,237) $ City of Gardena
Combining Schedule of Revenues, Expenses, and Changes in Net Position All Internal Service Funds
For the year ended June 30, 2025
152
Liability Workers' Health
Insurance Compnesation Benefit Total
CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from users 2,786,054 $ 4,134,828 $ 11,296,961 $ 18,217,843 $ Receipts from claims and recoveries 1,148 45,985 939,530 986,663 Payments for insurance claims (1,922,916) (2,897,755) (4,603,812) (9,424,483) Payment to suppliers (1,204,773) (686,605) (6,340,005) (8,231,383) Net cash provided (used by) operating activities (340,487) 596,453 1,292,674 1,548,640

CASH FLOWS FROM NON-CAPITAL
FINANCING ACTIVITIES:

Transfers from other funds 933,776 1,100,000 - 2,033,776 Transfers to other funds - - (1,433,776) (1,433,776) Net cash provided (used by)
non-capital financing activities 933,776
1,100,000 (1,433,776) 600,000
CASH FLOWS FROM INVESTING ACTIVITIES:

Interest received 100,476 52,299 209,122 361,897 Net cash provided (used by) investing activities 100,476 52,299 209,122 361,897 Net increase (decrease) in cash and cash equivalents 693,765 1,748,752 68,020 2,510,537 Cash and equivalents, beginning of year 3,656,688 2,105,747 5,731,937 11,494,372 Cash and equivalents, end of year 4,350,453 $ 3,854,499 $ 5,799,957 $ 14,004,909 $

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

Operating income (loss) (2,589,208) $ 593,743 $ 1,216,533$ (778,932) $ 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 6,783 (20,921) (1,978) (16,116) (Increase) decrease in prepaid items and deposits 299 67,396 (9,990) 57,705 Increase (decrease) in accounts payable 273,100 500 2,478 276,078 Increase (decrease) in accrued liabilities - (46,047) 16,865 (29,182) Increase (decrease) in salaries and benefits payable 2,550 2,362 - 4,912 Increase (decrease) in claims payable 1,965,989 (580) 68,766 2,034,175 Total adjustments 2,248,721 2,710 76,141 2,327,572 Net cash provided (used) by operating activities (340,487)$ 596,453 $ 1,292,674$ 1,548,640 $ City of Gardena
Combining Schedule of Cash Flows
All Internal Service Funds
For the year ended June 30, 2025
153
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City of Gardena

Annual Comprehensive Financial Report
For the Year Ended June 30, 2025

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City of Gardena

Annual Comprehensive Financial Report
For the Year Ended June 30, 2025

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STATISTICAL SECTION
Fiscal Year 2024-25

157

STATISTICAL SECTION
Fiscal Year 2024-25

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158

CITY OF GARDENA

STATISTICAL SECTION
Fiscal Year 2024-25

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, 2025

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2024-25 2023-24 2022-23 2021-22 2020-21
Governmental Activities
Net Investment in Capital Assets 64,707,716 $ 54,842,470 $ 43,557,695 $ 40,126,502 $ 28,550,313 $ Restricted for:

Debt Service 10,339,393 2,162,116 1,994,718 1,617,913 1,681,507 Employment and Training Services - - - - - Law Enforcemen
t 3,425,402 1,046,383 1,414,499 1,459,666 1,593,265
Local Street Improvements 10,691,870 8,671,919 14,126,722 10,385,580 9,329,940 Economic Development 6,033,175 5,971,740 6,965,240 6,914,470 5,783,794 Capital Projects 6,817,525 17,981,086 301,897 273,887 273,887 Human Services 62,900 30,747 1,219,550 1,014,200 662,807 Community Developmen
t - 105,508 - - - Total Restricted: 37,370,265 35,969,499 26,022,626 21,665,716 19,325,200 Unrestricted(2) (100,937,199) (119,308,822) (115,019,564) (95,499,040) (114,185,399) Total governmental activities net position $1,140,782 ($28,496,853) ($45,439,243) ($33,706,822) ($66,309,886) Business-type Activities
Net Investment in Capital Assets $80,417,960 $81,127,691 $59,138,198 $59,701,427 $60,014,796 Unrestricted(2) (33,491,095) (30,126,568) (32,642,965) (33,216,568) (34,052,901) Total business-type activities net position $46,926,865 $51,001,123 $26,495,233 $26,484,859 $25,961,895 Primary Government
Net Investment in Capital Assets $145,125,676 $135,970,161 $102,695,893 $99,827,929 $88,565,109 Restricted 37,370,265 35,969,499 26,022,626 21,665,716 19,325,200 Unrestricte
d(2) (134,428,294) (149,435,390) (147,662,529) (128,715,608) (148,238,300) Total Primary Government Net Position: 48,067,647$ 22,504,270 $ (18,944,010) $ (7,221,963) $ (40,347,991) $ 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, 2025
(accrual basis of accounting)
Source: City of Gardena, Administrative Services Department - Finance Division 160
2019-20 2018-19 2017-18(2) 2016-17 2015-16
Governmental Activities
Net Investment in Capital Assets 30,055,713 $ 47,404,733 $ 27,748,135 $ 28,138,906 $ 27,897,717 $ Restricted for:

Debt Service 1,708,162 1,669,313 1,916,945 1,924,432 2,679,363 Employment and Training Services - - 5,287 43,611 164,116 Law Enforcemen
t 1,080,052 1,344,114 921,976 914,062 1,251,314
Local Street Improvements 7,956,523 7,130,678 6,060,770 6,205,701 7,072,378 Local Street Improvements 4,393,701 5,306,507 6,006,024 1,986,202 2,394,395 Economic Development 273,887 295,912 571,089 295,912 301,546 Other Purposes 689,290 657,424 633,275 651,830 289,859
Specific Projects and Programs - - - - - Total Restricted: 16,101,615 16,403,948 16,115,366 12,021,750 14,152,971 Unrestricted (126,640,099) (131,787,090) (107,886,487) (99,400,392) (60,913,888) Total governmental activities net positio
n ($80,482,771) ($67,978,409) ($64,022,986) ($59,239,736) ($18,863,200) Business-type Activities
Net Investment in Capital Assets $50,474,813 $53,054,448 $56,261,253 $60,150,166 $62,151,750 Unrestricted (32,350,671) (29,646,082) (27,969,730) (27,390,162) (21,068,543) Total business-type activities net position $18,124,142 $23,408,366 $28,291,523 $32,760,004 $41,083,207 Primary Government
Net Investment in Capital Assets $80,530,526 $100,459,181 $84,009,388 $88,289,072 $90,049,467 Restricted 16,101,615 16,403,948 16,115,366 12,021,750 14,152,971 Unrestricte
d (158,990,770) (161,433,172) (135,817,893) (126,790,554) (81,982,431) Total Primary Government Net Position: (62,358,629)$ (44,570,043) $ (35,693,139) $ (26,479,732) $ 22,220,007 $ 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, 2025
(accrual basis of accounting)
Source: City of Gardena, Administrative Services Department - Finance Division 161
2024-25 2023-24 2022-23 2021-22 2020-21
Expenses
Governmental Activitie
s
General Government 9,107,752$ 10,765,058 $ 7,470,021 $ 7,771,663 $ 7,807,099 $ Public Safety 56,285,591 53,473,334 77,971,300 27,964,662 47,363,640 Public Works 8,013,865 11,783,411 10,737,606 11,239,762 7,543,698 Recreation and Human Services 3,220,079 8,503,950 8,229,820 7,566,226 6,766,739 Community Developmen
t 6,125,888 5,022,928 2,266,794 5,946,949 2,986,934
Interest and fiscal charges 3,715,867 3,233,912 3,773,164 3,888,463 2,532,013 Total governmental activities expenses: 86,469,042 92,782,593 110,448,705 64,377,725 75,000,123 Business-type Activities
GTrans 38,864,525 31,973,093 28,643,376 27,966,497 29,505,837 Sewer 1,756,000 1,723,699 1,466,607 1,423,680 1,190,734 Total business-type activities expenses: 40,620,525 33,696,792 30,109,983 29,390,177 30,696,571 Total primary government expenses
: 127,089,567 126,479,385 140,558,688 93,767,902 105,696,694 Program Revenues
Governmental Activities
Charges for services:

General Government 10,706,359 10,785,228 4,149,501 8,769,328 5,333,187 Public Safety 1,329,081 2,694,787 1,251,096 1,236,057 1,240,360 Public Works 312,825 3,112,536 396,408 534,045 378,834
Recreation and Human Services 523,835 632,632 3,647,400 3,647,094 2,750,536 Community Developmen
t 2,232,223 939,062 2,521,913 3,139,836 2,499,553
Interest and fiscal charges - - - - - Operating Grants and Contributions 11,866,495 8,113,744 5,814,708 4,081,043 14,663,306 Capital Grants and Contributions 3,083,454 5,535,276 3,329,828 2,511,878 3,017,989 Total governmental activities program revenues: 30,054,272 31,813,265 21,110,854 23,919,281 29,883,765 Business-type Activities
Charges for services:

GTrans 2,047,491 1,947,714 1,793,580 1,643,970 135,875
Sewer 2,534,274 2,545,381 2,473,501 2,610,910 2,685,365 Operating Grants and Contributions 28,022,172 27,682,663 22,744,442 22,018,364 20,725,314 Capital Grants and Contributions 2,815,854 25,560,140 3,186,920 3,915,704 14,856,026 Total business-type activities program revenues: 35,419,791 57,735,898 30,198,443 30,188,948 38,402,580 Total primary government revenues
: 65,474,063$ 89,549,163 $ 51,309,297 $ 54,108,229 $ 68,286,345 $ Fiscal Year
City of Gardena
Changes in Net Position
Last Ten Fiscal Years Ended June 30, 2025
(accrual basis of accounting)
Source: City of Gardena, Administrative Services Department - Finance Division 162
2019-20 2018-19 2017-18 2016-17 2015-16
Expenses
Governmental Activitie
s
General Government 7,383,173$ 8,609,254 $ 6,177,468 $ 5,848,247 $ 5,730,664 $ Public Safety 47,760,821 43,617,238 41,420,762 38,700,824 36,304,203 Public Works 10,958,845 11,717,321 7,120,106 6,956,766 8,545,467 Recreation and Human Services 6,600,989 6,395,004 9,742,993 9,154,921 6,777,838 Community Developmen
t 2,692,644 2,662,554 2,938,656 2,796,216 2,538,835
Interest and fiscal charges 1,156,041 1,191,118 1,241,054 1,382,078 1,365,398 Total governmental activities expenses: 76,552,513 74,192,489 68,641,039 64,839,052 61,262,405 Business-type Activities
GTrans 31,024,629 28,646,739 27,804,739 28,195,640 26,410,211 Sewer 1,651,788 1,512,189 1,432,695 1,760,303 1,046,864 Total business-type activities expenses: 32,676,417 30,158,928 29,237,434 29,955,943 27,457,075 Total primary government expenses
: 109,228,930 104,351,417 97,878,473 94,794,995 88,719,480 Program Revenues
Governmental Activities
Charges for services:

General Government 4,072,004 4,107,289 3,864,795 3,504,735 3,298,306 Public Safety 1,338,121 1,862,764 1,312,945 1,422,001 1,174,116 Public Works 351,732 351,463 418,667 615,289 513,495
Recreation and Human Services 3,801,562 2,962,339 2,685,240 2,979,625 2,315,212 Community Developmen
t 2,246,297 1,687,652 1,724,501 1,771,754 2,187,082
Interest and fiscal charges - - - - - Operating Grants and Contributions 3,351,864 3,142,207 3,719,048 2,048,938 2,067,123 Capital Grants and Contributions 1,621,611 2,037,030 2,002,799 1,268,576 1,918,489 Total governmental activities program revenues: 16,783,191 16,150,744 15,727,995 13,610,918 13,473,823 Business-type Activities
Charges for services:

GTrans 1,766,952 2,382,758 2,459,105 2,482,516 2,685,573 Sewer 2,323,753 2,016,346 1,790,296 954,552 673,199
Operating Grants and Contributions 21,277,188 20,612,788 19,855,368 17,462,145 16,905,476 Capital Grants and Contributions 1,962,998 1,086,741 576,031 3,120,351 1,850,968 Total business-type activities program revenues: 27,330,891 26,098,633 24,680,800 24,019,564 22,115,216 Total primary government revenues
: 44,114,082$ 42,249,377 $ 40,408,795 $ 37,630,482 $ 35,589,039 $ Fiscal Year
Changes in Net Position (Continued)
Last Ten Fiscal Years Ended June 30, 2025
(accrual basis of accounting)
City of Gardena
Source: City of Gardena, Administrative Services Department - Finance Division 163
2024-25 2023-24 2022-23 2021-22 2020-21
Net (expense)/revenue: (1)
Governmental activities (56,414,770) (60,969,328) (89,337,851) (40,458,444) (46,089,053) Business-type activities (5,200,734) 24,039,106 88,460 798,771 7,676,625 Total net revenues (expenses): (61,615,504) (36,930,222) (89,249,391) (39,659,673) (38,412,428) General Revenue and Other Changes in Net Position
Governmental activities
Taxes:

Property taxes 10,874,154 10,141,426 9,985,883 9,186,838 8,799,364 Sales tax 31,656,201 28,056,992 29,662,286 27,908,699 23,760,125 Business license 3,153,491 3,477,728 2,733,939 2,647,094 2,508,287 Utility user taxes 6,829,968 6,404,308 6,317,851 5,481,395 4,970,799 Franchise taxes 3,572,251 3,724,876 3,275,380 3,075,659 2,809,101 Card club taxes 8,808,950 8,910,456 8,633,144 10,544,947 3,999,147 Other taxes 4,901,510 4,819,341 5,882,066 4,626,009 3,764,716 Vehicle license - unrestricte
d 9,142,820 8,558,629 8,073,890 7,485,678 7,203,563
Investment income 5,315,119 2,260,394 1,881,428 (1,520,476) (57,164) Miscellaneous 1,597,676 1,399,408 643,709 3,281,484 2,730,183 Gain on sale of assets - - - - (190,979) Transfers 200,265 158,160 515,854 344,181 (35,204) Total governmental activities 86,052,405 77,911,718 77,605,430 73,061,508 60,261,938 Business-type activities
Investment incom
e 1,064,789 624,944 437,768 68,374 125,924
Miscellaneous - - - - - Gain (loss) on sale of assets - - - - - Transfers (200,265) (158,160) (515,854) (344,181) 35,204 Total business-type activities: 864,524 466,784 (78,086) (275,807) 161,128 Total primary government: 86,916,929 78,378,502 77,527,344 72,785,701 60,423,066 Change in Net Position
Governmental activities 29,637,635 16,942,390 (11,732,421) 32,603,064 14,172,885 Business-type activities (4,336,210) 24,505,890 10,374 522,964 7,837,753 Total primary government: 25,301,425 $ 41,448,280 $ (11,722,047) $ 33,126,028 $ 22,010,638 $ (1) Net (expense)/revenue is the difference between the expenses and program revenues of a function or program. It indicates the degree to which a function or program is supported with its own fees and program specific grants versus its reliance upon funding from taxes and other general revenues.
-A number in parentheses are net expenses, indicating that expenses were greater than program revenues and therefore ,
general revenues were needed to finance that function or program. -Numbers without parentheses are net revenues, meaning that program revenues were more than sufficient to cover expenses .

Fiscal Year
Changes in Net Position (Continued)
Last Ten Fiscal Years Ended June 30, 2025
(accrual basis of accounting)
City of Gardena
Source: City of Gardena, Administrative Services Department - Finance Division 164
2019-20 2018-19 2017-18 2016-17 2015-16
Net (expense)/revenue: (1)
Governmental activities (59,769,322) (58,041,745) (52,913,044) (51,228,234) (47,788,582) Business-type activities (5,345,526) (4,060,295) (4,556,634) (5,936,379) (5,341,859) Total net revenues (expenses): (65,114,848) (62,102,040) (57,469,678) (57,164,613) (53,130,441) General Revenue and Other Changes in Net Position
Governmental activities
Taxes:

Property taxes 8,205,539 7,735,545 7,150,957 7,130,426 6,729,849 Sales tax 12,440,147 13,466,178 11,006,901 11,204,697 11,227,326 Business license 2,438,304 2,843,375 2,727,532 2,606,279 2,536,438 Utility user taxes 4,801,229 4,955,645 5,088,450 5,147,736 5,212,410 Franchise taxes 2,816,277 2,777,572 2,609,219 2,440,108 2,534,820 Card club taxes 4,874,457 8,101,583 8,071,001 8,975,991 9,057,202 Other taxes 3,920,393 4,354,725 3,985,315 3,855,705 3,479,372 Vehicle license - unrestricte
d 6,788,130 6,378,321 5,994,920 5,677,909 5,445,385
Investment income 1,036,057 1,061,732 158,902 129,187 499,279 Miscellaneous 690,353 1,384,272 1,134,729 2,261,772 2,566,919 Gain on sale of assets (863,795) 10,622 201,560 883,201 1,877,151 Transfers 117,869 978,428 38,632 9,898 3,221,449
Total governmental activities 47,264,960 54,047,998 48,168,118 50,322,909 54,387,600 Business-type activities
Investment incom
e 162,760 155,566 124,243 77,618 55,492
Miscellaneous - - 2,542 18,512 13,623 Gain (loss) on sale of assets 16,411 - - - - Transfers (117,869) (978,428) (38,632) (9,898) (3,221,449) Total business-type activities: 61,302 (822,862) 88,153 86,232 (3,152,334) Total primary government: 47,326,262 53,225,136 48,256,271 50,409,141 51,235,266 Change in Net Position
Governmental activities (12,504,362) (3,993,747) (4,744,926) (905,325) 6,599,018 Business-type activities (5,284,224) (4,883,157) (4,468,481) (5,850,147) (8,494,193) Total primary government: (17,788,586) $ (8,876,904) $ (9,213,407) $ (6,755,472) $ (1,895,175) $ (1) Net (expense)/revenue is the difference between the expenses and program revenues of a function or program. It indicates the degree to which a function or program is supported with its own fees and program specific grants versus its reliance upon funding from taxes and other general revenues.
-A number in parentheses are net expenses, indicating that expenses were greater than program revenues and therefore ,
general revenues were needed to finance that function or program. -Numbers without parentheses are net revenues, meaning that program revenues were more than sufficient to cover expenses .

Fiscal Year
City of Gardena
Changes in Net Position (Continued)
Last Ten Fiscal Years Ended June 30, 2025
(accrual basis of accounting)
Source: City of Gardena, Administrative Services Department - Finance Division 165
2024-25 2023-24 2022-23 2021-22 2020-21
General Fund
Nonspendable (1) 356,233$ 346,983 $ 327,406 $ 352,425 $ 1,214,022 $ Restricted (1) - - - - - Committed (1) 36,116,612 33,309,406 26,848,674 26,936,620 18,697,703 Assigned (1) 30,276,574 25,660,594 22,662,517 14,236,728 8,670,503 Unassigned (1) 300,000 300,000 300,000 300,001 200,000 Total General Fund: $67,049,419 $59,616,983 $50,138,597 $41,825,774 $28,782,228 All Other Governmental Funds
Nonspendable (1) 52,609$ 9,764 $ 311,097 $ 329,979 $ 342,428 $ Restricted (1) 37,291,035 29,675,971 36,402,832 31,699,951 16,660,769 Committed (1) - 301,894 - - - Assigned (1) - - - - - Unassigned (1) (1,204) 5,969,329 (347,129) (185,700) (1,298,092) Total all other governmental funds: 37,342,440 $ 35,956,958 $ 36,366,800 $ 31,844,230 $ 15,705,105 $ 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, 2025
(modified accrual basis of accounting)
General Fund

64.23%
All Other
Governmental
Funds

49.82%
Fund Balances
Fiscal Year Ended June 30, 2025
166
2019-20 2018-19 2017-18 2016-17 2015-16
General Fund
Nonspendable (1) 302,361$ 333,803 $ 385,931 $ 294,133 $ 189,819 $ Restricted (1) - - 5,287 43,611 164,116 Committed (1) 7,310,676 13,287,448 19,315,675 19,413,135 17,542,367 Assigned (1) 2,848,416 2,622,256 3,609,547 3,936,266 2,773,686 Unassigned (1) 173,122 271,377 200,000 200,000 200,000 Total General Fund: $10,634,575 $16,514,884 $23,516,440 $23,887,145 $20,869,988 All Other Governmental Funds
Nonspendable (1) 350,432$ 308,741 $ 16,769,655$ - $ - $ Restricted (1) 15,682,481 16,089,466 - 10,073,376 11,726,127 Committed (1) - - - 3,765,323 3,776,154 Assigned (1) - - - - (20,809) Assigned (1) (81,218) - - - - Total all other governmental funds: 15,951,695 $ 16,398,207 $ 16,769,655 $ 13,838,699 $ 15,481,472 $ 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, 2025
(modified accrual basis of accounting)

15.48 13.84

16.77 16.40

15.95 15.71

31.84 36.37

35.96 0.00
0 5
10 15
20 25
30 35
40 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 (in Millions)
Fiscal Year
Fund Balances
All Other Governmental Funds
Last Ten Fiscal Years
167
2024-25 2023-24 2022-23 2021-22 2020-21 (2)
Revenues:

Taxes 76,603,633 $ 75,397,665 $ 74,247,538 $ 70,663,462 $ 57,968,745 $ Licenses and permits 1,967,596 3,168,262 2,158,749 2,900,062 2,389,538 Use of money and property 4,962,491 3,265,756 1,881,431 (1,517,780) (56,416) Intergovernmental 17,523,988 13,372,447 12,265,983 13,689,853 16,142,006 Fines, forfeitures, and penalties 1,063,826 1,078,296 1,235,414 3,660,686 3,168,468 Charges for services 12,050,797 11,823,454 5,723,983 5,448,044 5,188,250 Miscellaneous 716,895 674,091 720,310 5,245,065 1,664,391 Total Revenues: 114,889,226 108,779,971 98,233,408 100,089,392 86,464,982 Expenditures:

Current:

General governmen
t 7,746,657 8,544,614 6,208,151 5,296,661 5,325,270
Public safety 51,641,158 48,263,127 42,327,977 41,545,473 37,558,085 Public works 10,445,195 9,087,374 8,435,997 7,868,811 6,776,073 Recreation and Human resources 6,997,687 7,353,343 8,221,690 7,318,062 6,232,436 Community developmen
t 4,694,214 4,190,330 2,837,108 3,061,632 2,789,072
Capital outlay 15,311,120 12,720,112 8,816,842 8,929,107 5,199,699 Debt service:

Principal 5,755,451 4,976,825 5,052,989 3,850,985 1,173,158 Interest and fiscal charges 3,565,801 3,651,410 3,750,867 3,899,642 2,340,735 Total Expenditures: 106,157,283 98,787,135 85,651,621 81,770,373 67,394,528 Excess of Revenues over (under) Expenditure
s 8,731,943 9,992,836 12,581,787 18,319,019 19,070,454
Other Financing Sources (Uses):

Proceeds of long-term debt 485,710 - - - - Proceeds from sale of assets - 17,548 34,093 127,623 3,492 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 - - - - - Transfers in 19,669,605 18,476,483 18,089,299 16,400,118 12,724,862 Transfers out (20,069,340) (19,418,323) (18,917,929) (21,055,937) (14,360,066) Total Other Financing Sources (Uses): 85,975 (924,292) 253,606 10,863,652 (1,169,391) Net change in fund balances 8,817,918 $ 9,068,544 $ 12,835,393 $ 29,182,671 $ 17,901,063 $ Debt service as a percentage of
noncapital expenditures: (1) 10.26% 8.77% 10.41% 9.66% 5.39% 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, 2025
Changes In Fund Balances - Governmental Funds
168
2019-20 2018-19 2017-18 2016-17 2015-16
Revenues:

Taxes 46,128,710 $ 50,827,680 $ 47,527,518 $ 46,847,209 $ 46,222,802 $ Licenses and permits 1,646,059 1,735,711 1,694,670 1,800,752 1,521,379 Use of money and property 1,036,059 1,061,734 158,902 129,186 499,278 Intergovernmental 7,157,208 7,409,245 6,201,645 5,549,872 5,705,627 Fines, forfeitures, and penalties 1,112,890 2,261,549 1,124,079 1,102,235 1,794,049 Charges for services 6,142,402 5,270,787 5,070,020 5,155,573 4,545,874 Miscellaneous 831,773 892,283 1,197,011 2,944,050 1,807,155 Total Revenues: 64,055,101 69,458,989 62,973,845 63,528,877 62,096,164 Expenditures:

Current:

General governmen
t 6,576,421 6,004,196 5,025,047 4,914,416 4,886,467
Public safety 41,295,066 45,783,773 37,851,314 36,977,198 34,674,068 Public works 8,372,502 8,058,427 4,012,134 4,064,485 5,584,816 Recreation and Human resources 6,155,882 6,138,238 9,194,054 8,631,034 6,498,830 Community developmen
t 2,474,928 2,382,263 2,734,299 2,757,861 2,533,734
Capital outlay 3,636,782 6,127,264 3,794,206 3,349,481 8,332,649 Debt service:

Principal 967,696 902,804 627,898 2,703,105 754,158
Interest and fiscal charges 1,155,814 1,198,262 1,227,659 1,431,641 1,369,936 Total Expenditures: 70,635,091 76,595,227 64,466,611 64,829,221 64,634,658 Excess of Revenues over (under) Expenditure
s (6,579,990) (7,136,238) (1,492,766) (1,300,344) (2,538,494) Other Financing Sources (Uses):

Proceeds of long-term debt - - - - - Proceeds from sale of property 46,241 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 - Issuance discount - - - - - Issuance of loans 86,223 86,223 86,223 86,223 311,026 Transfers in 7,476,706 9,013,583 6,747,282 6,487,933 11,143,623 Transfers out (7,356,001) (8,350,155) (6,708,650) (6,558,966) (9,599,678) Total Other Financing Sources (Uses): 253,169 766,064 548,590 2,674,728 6,845,127 Net change in fund balances (6,326,821)$ (6,370,174) $ (944,176) $ 1,374,384$ 4,306,633 $ Debt service as a percentage of
noncapital expenditures: (1) 3.14% 2.87% 3.03% 6.64% 3.51% 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, 2025
(modified accrual basis of accounting)
169
Permits, Fines Uses of
Fiscal Licenses and Money and
Year Taxes and Fees Forfeitures Property
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 2024-25 76,603,633 1,967,596 1,063,826 4,962,491 Source: City of Gardena, Administrative Services Department - Finance Division City of Gardena
Governmental Revenues By Sources
Last Ten Fiscal Years
Taxes

66.68%
Permits/Licenses

1.71%
Fine/Forfeitures

0.93%
Use of
Money/Property

4.32%
Inter-Governmental

8.74%
Service Charges

10.49%
Other Revenue

0.62%
General Revenues by Sources
Fiscal Year Ended June 30, 2025
170
Charges
Fiscal Inter- for Other
Year Governmental Services Revenues Total
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 2024-25 17,523,988 12,050,797 716,895 114,889,226 Source: City of Gardena, Administrative Services Department - Finance Division City of Gardena
Governmental Revenues By Sources (Continued)
Last Ten Fiscal Years
$62.1M $63.5M $63.M $69.5M $64.1M
$86.5M
$100.1M $98.2M
$108.8M$114.9M
0 20,000,000
40,000,000
60,000,000
80,000,000
100, 000,000
120, 000,000
140, 000,000
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Fiscal Year
General Revenues by Sources
Last Ten Fiscal Years
171
Recreation
and
Fiscal General Public Public Human
Year Government Safety Works Services
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 2024-25 7,746,657 51,641,158 10,445,195 6,997,687 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

7.30%
Public Safety

48.65%
Public Works

9.84%
Recreation/
Human Services

6.59%
Community
Development

4.42%
Capital Outlay

14.42%
Debt Services

8.78%
General Governmental Expenditures
by Function
Fiscal Year ended June 30, 2025
172
Fiscal Community Capital Debt
Year Development Outlay Service (1)(2) Total
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 2024-25 4,694,214 15,311,120 9,321,252 106,157,283 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
$64.6M $64.8M $64.5M
$76.6M
$70.6M $67.4M
$81.8M $85.7M
$98.8M
$106.2M
0 20,000,000
40,000,000
60,000,000
80,000,000
100, 000,000
120, 000,000
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 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 2015-16 256,548 500 - 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 - 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 - 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 - 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 - 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 - 384,066 4,005,949, 237 3,004,367,152 24,551,498 (105,940,809) 6,928,927,078 2021-22 213,049 - - 213,049 4,213,320, 667 3,080,008,549 27,201,792 (100,843,365) 7,219,687,643 2022-23 213,049 - - 213,049 4,581,077, 862 3,256,656,564 27,312,819 (83,188,820) 7,781,858,425 2023-24 79,755 - - 79,755 4,996,682,580 3,447,486,489 29,700,615 (128,753,189) 8,345,116,495 2024-25 144,998 - - 144,998 5,287,905, 802 3,652,857,990 37,394,092 (136,792,317) 8,841,365,567 Source: (1) L.A. County Assessor 2024/25 Combined Tax Rolls (2) Hdl Coren & Cone.
by all the taxing agencies for which the subject property resides within. In addition to 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds.

Taxation Code.

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

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

STATE ASSESSED LOCALLY ASSESSED
Land

56.94%
Improvements

40.67%
Personal Property

2.39%
Assessed Valuation by Categories
(Total Secured and Unsecured)
Fiscal Year Ended June 30, 2025
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 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 - 311,559,095 8,785,508, 534 8,656,755,345 7. 22% 0.11618% 44,144,720 2024-25 124,749,617 184,601,293 (36,200) 309,314,710 9,287,653, 792 9,150,825,275 5. 71% 0.11600% 44,277,773 Source: (1) L.A. County Assessor 2024/25 Combined Tax Rolls (2) Hdl Coren & Cone.

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

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

LOCALLY ASSESSED

UNSECURED
TOTALS
City of Gardena
Assessed Valuation (1) and Actual Value of Taxable Property (Continued) Last Ten Fiscal Years
$5,453
$5,687
$6,005
$6,398
$6,801
$7,224
$7,509
$8,074
$8,657
$9,151
0 1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 (In Millions)
Fiscal Year
Total Assessed Valuation
(Taxable Values)
Last Ten Fiscal Years
175
CATEGORY 2024-25 2023-24 2022-23 2021-22 2020-21
Residential $6,073,947,328 $5,697,161,939 $5,247,758,428 $4,857,419,242 $4,671,664,590 Commercial 1,170,904,268 1,131,751,802 1,074,201,133 1,027,450,526 1,006,453,482 Industrial 1,345,452,591 1,298,035,540 1,208,490,671 1,117,152,653 1,037,251,905 Govt. Owned 116,674 116,674 22 - - Recreational 43,358,893 43,240,677 42,678,387 41,518,155 40,966,262 Institutional 118,581,852 88,652,232 114,427,704 94,990,583 89,836,280 Miscellaneous 2,270,512 2,262,303 88 - - Vacant land 57,140,993 56,048,027 66,945,560 66,349,257 69,851,264 SBE Nonunitary 144,998 79,755 213,049 213,049 384,066 Cross Reference 29,592,412 27,847,301 27,356,432 14,807,227 12,903,295 Unsecured 309,314,710 311,559,095 292,102,069 288,608,090 294,669,329 Unknown 44 - - - - 9,150,825,275 8,656,755,345 8,074,173,543 7,508,508,782 7,223,980,473 Homeowner Exemption (1) - - - - - TOTALS: $9,150,825,275 $8,656,755,345 $8,074,173,543 $7,508,508,782 $7,223,980,473 Source: L.A. County Assessor 2015/16-2024/25 Combined Tax Rolls, HdL, Coren & Cone Fiscal Year
City of Gardena
Assessed Value of Property by User Code
Last Ten Fiscal Years
Notes: In 1978 the voters of the State of California passed Proposition 13 which limited taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum of 2%). With few exemptions, property is only reassessed as a result of new construction or at the time it is sold to a new owner. At that point, the property is reassessed based upon the added value of the construction or at the purchase price (market value) or economic value of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitation just mentioned.
-Exempt values are not included in Total.
(1) In 2006-07 certain report formatting changes have been made to comply with GASB 44 standard reporting requirements; therefore, the net of Homeowner Exemption is separated from previous years. 176
CATEGORY 2019-20 2018-19 2017-18 2016-17 2015-16
Residential $4,397,530,388 $4,139,852, 554 $3,879,882,318 $3,623, 545,163 $3,441,407,499 Commercial 936,892,089 888,959,749 831,348,140 791,527,339 750,255,119 Industrial 964,891,072 889,298,836 834,753,358 796,231,706 763,622,835 Govt. Owned - - - 5,250,000 - Recreational 40,263,960 39,491,086 38,342,794 38,760,141 39,348,412 Institutional 76,976,001 74,813,850 78,834,725 69,798,622 65,412,639 Miscellaneous - - 451,519 442,667 - Vacant land 75,744,666 62,990,225 46,086,466 54,308,182 57,298,803 SBE Nonunitary 257,048 257,048 257,048 257,048 257,048 Cross Reference 13,675,983 10,002,510 8,787,949 8,513,799 7,783,045 Unsecured 294,349,387 291,947,663 286,651,391 298,317,633 327,711,675 Unknown - - - - 22 6,800,580,594 6,397,613,521 6,005,395,708 5,686,952,300 5,453,097,097 Homeowner Exemption (1) - - - - - TOTALS: $6,800,580,594 $6,397,613, 521 $6,005,395,708 $5,686, 952,300 $5,453,097,097 Source: L.A. County Assessor 2015/16-2024/25 Combined Tax Rolls, HdL, Coren & Cone Fiscal Year
City of Gardena
Assessed Value of Property by User Code (Continued)
Last Ten Fiscal Years
above represents the only data currently available with respect to the actual market value of taxable property maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum of 2%). With few exemptions, property is only reassessed as a result of new construction or at the time it is sold to a new owner. At that point, the property is reassessed based upon the added value of the construction or at the purchase price (market value) or economic value of the property sold. The assessed valuation data shown Notes: In 1978 the voters of the State of California passed Proposition 13 which limited taxes to a total -Exempt values are not included in Total.
reporting requirements; therefore, the net of Homeowner Exemption is separated from previous years. (1) In 2006-07 certain report formatting changes have been made to comply with GASB 44 standard and is subject to the limitation just mentioned.
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $3,441 $3,624
$3,880 $4,140 $4,398 $4,672 $4,857 $5,248 $5,697 $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 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 2024-25 6,073,947 1,170,903 1,345,453 - 43,359 118,582 117 57,141 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 2015/16-2024/25 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 Cross Reference Unsecured Misc. TOTAL Rate (1) Value (2) Value 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 0.11766 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 2024-25 145 29,592 309,315 2,271 9,150,825 0.11600 12,204,547 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 2015/16-2024/25 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 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 2024-25 835 29,098,547 138 10,843,539 3 1,756,751 Sources: (1) City of Gardena, Community Development Department. (2) City of Gardena-FDIC-Insured Institutions as of 06/30/2025 CONSTRUCTION (1)
Residential Commercial Industrial
City of Gardena
Construction and Bank Deposits
(Miscellaneous Information)
Last Ten Fiscal Years
3,010
3,152
2,951
3,038 2,723
1,915
2,167
1,700
1,483
1,577
0 500
1,000
1,500
2,000
2,500
3,000
3,500
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 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) 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 2024-25 601 2,633,285 1,577 44,332,121 2,343,363 Sources: (1) City of Gardena, Community Development Department. (2) City of Gardena-FDIC-Insured Institutions as of 06/30/2025 TotalAll others
CONSTRUCTION (1)
City of Gardena
Construction and Bank Deposits (Continued)
(Miscellaneous Information)
Last Ten Fiscal Years
30,372
34,999
44,483
34,815
44,468
95,620
70,956
45,721
122,878
44,332
0 20,000
40,000
60,000
80,000
100,000
120,000
140,000
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 (in Thousands)
Fiscal Year
Permit Valuation
Last Ten Fiscal Years
(in thousands)
181
Los Angeles
Fiscal Los Angeles Unified School
Year General County District
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
2024-25 1.000000 0.000000 0.128020
(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 2015/16-2024/25 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

0.1280

0.0514

0.0000

0.0070
Tax Rates
Governments
Property Tax Rates -All Overlapping Governments
Fiscal Year ended June 30, 2025

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
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
2024-25 0.051360 0.000000 0.007000 1.186380
(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 2015/16-2024/25 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)

1.1690

1.1706

1.1717

1.1729

1.1562

1.1836

1.1605

1.1495

1.1880

1.1864

1.130

1.140

1.150

1.160

1.170

1.180

1.190

1.200
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Tax Rates
Fiscal Year
Total Overlapping Governments
Last Ten Fiscal Years
183
Agency 24-25 23-24 22-23 21-22 20-21
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 % 0.00032 % 0.00000 % 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): 0.11600 % 0.11618 % 0.11644 % 0.11672 % 0.11685 % 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 2015/16-2024/25 Combined Tax Rolls, HdL, Coren & Cone City of Gardena
Direct and Overlapping Property Tax Rates
(rate per $100 of assessed value)
Ten Fiscal Year Detail of Rates for Largest General Fund Tax Rates Area 00576 (Proposition 13 Rate)

FISCAL YEAR
184
Agency 19-20 18-19 17-18 16-17 15-16
City of Gardena Tax District 1 0.11160 % 0.11160 % 0.11160 % 0.11160 % 0.11160 % Children's Institutional Tuition Fund 0.00285 % 0.00285 % 0.00285 % 0.00285 % 0.00285 % County Sanitation District No. 5 Operations 0.01256 % 0.01256 % 0.01256 % 0.01256 % 0.01256 % County School Services 0.00144 % 0.00144 % 0.00144 % 0.00144 % 0.00144 % County School Service Fund 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): 0.11711 % 0.11737 % 0.11766 % 0.11790 % 0.11809 % County of Los Angeles (1) 0.00000 % 0.00000 % 0.00000 % 0.00000 % 0.00000 % City of Gardena
Direct and Overlapping Property Tax Rates (Continued)

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

0.000%

0.020%

0.040%

0.060%

0.080%

0.100%
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25

0.118%

0.118%

0.118%

0.117%

0.117%

0.117%

0.117%

0.116%

0.116%

0.116%
Fiscal Year
Total Direct Rate
Last Ten Fiscal Years
185
Percent of Percent of
Total Total City Total Total City
Primary Assessed Assessed Assessed Assessed
Use Value Value Value Value
MPT of Gardena PHS LP Institutional $91,061,007 1.00 %
Nissin Foods USA Company Inc Industrial 69,908,787 0.76 Terreno 139th LLC Industrial 41,887,738 0.46
Gardena Owner LP Industrial 36,505,555 0.40
JSL Gardena I LLC Commercial 34,151,560 0.37
14215 Normandie LLC Commercial 33,571,879 0.37
Showa Marine Inc Industrial 28,974,786 0.32
Liberty Property L
P Industrial 28,949,454 0.32
Majestic Properties Inc Recreational 26,135,815 0.29
PK I Gardena Gateway Center L
P Commercial 24,300,130 0.27
Hitco Carbon Composites Inc Unsecure d 91,052,743 1.67 % Nissin Foods USA Company Inc Industrial 57,280,846 1.05 GA HC Reit II Gardena CA Hospital LLC Institutional 43,033,643 0.79 JSL Gardena I LLC Commercial 28,984,133 0.53
Brek Manufacturing Company Lessee Unsecure d 27,175,194 0.50 Majestic Properties Inc Recreational 25,105,270 0.46
Gramercy Properties LL
C Industrial 22,399,915 0.41
PK I Gardena Gateway Center LP Commercial 20,623,319 0.38 Target Corporation Commercial 20,494,891 0.38
WH Gardena Marketplace LLC Commercial 19,481,618 0.36
Top Ten Totals (secured and unsecured): 415,446,711 4.54 % 355,631,572 6.52 % All Others (secured) 8,735,378,564 95.46 5,097,465,525 93.48 Total All Assessed Valuation (secured): $9,150,825,275 100.00 % $5,453,097,097 100.00 % Source: L.A. County Assessor 2015/16-2024/25 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 2024-25 Fiscal Year 2015-16
186
Business Category Tax Payers Business Category
1 1981 Publishing Light Industrial/Printers 76 Service Stations 2 76 Service Stations 76 Service Stations
3 A&A Chevron Service Stations A&A Chevron Service Stations 4 Arco AM PM Service Stations Albertsons Grocery Stores 5 Arco AM PM Service Stations Arco AM PM Service Stations 6 Beacon Roofing Supply Building Materials Beacon Roofing Supply Building Materials 7 Chick Fil A Quick-Service Restaurants Crenshaw Lumber Co Building Materials 8 Crenshaw Lumber Co Building Materials Crenshaw Wholesale Electric Supply Plumbing/Electrical Supplies 9 Crenshaw Wholesale Electric Supply Plumbing/Electrical Supplies Enterprise Rent A Car Transportation/Rentals 10 Enterprise Rent A Car Transportation/Rentals Food 4 Less Grocery Stores 11 G & C Equipment Finders Corp Contractors G & C Equipment Finders Corp Contractors 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 Hitco Technologies Heavy Industrial 15 Julien's Auctions Auctioneers Honda Lease Trust Auto Lease 16 Lab Fabrication Heavy Industrial Marukai Market Grocery Stores 17 Marukai Market Grocery Stores McDonald's Quick-Service Restaurants 18 McDonald's Quick-Service Restaurants Nader's Furniture Home Furnishings 19 Nissan of Gardena New Motor Vehicle Dealers New York Times Sales Light Industrial/Printers 20 Raising Cane's Quick-Service Restaurants Sam's Club w/ Fuel Discount Dept Stores 21 Sam's Club w/ Fuel Discount Dept Stores Smardan Hatcher Co. Plumbing/Electrical Supplies 22 Smardan Hatcher Co. Plumbing/Electrical Supplies Target Discount Dept Stores 23 Target Discount Dept Stores Vons Fuel Service Stations 24 Vons Fuel Service Stations Wood Oil Company Petroleum Prod/Equipment 25 Wood Oil Company Petroleum Prod/Equipment Z Gallerie Home Furnishings *** The names are listed in alphabetical order, not sales tax volume.

Source: SBOE, CDTFA, SCO, HdL Companie
s
(1) Period: from January to December
Calendar Year 2015
Tax Payers
Calendar Year 2024
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 55.75% -Account for 57.04%
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 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% 2024-25 10,167,107 10,117,937 99.52% 49,169 10,167,107 100.00% 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 2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 10,167,107
10,167,107
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
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%
2024-25 8,808,950 89,665,046 9.82%
(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

9.06 8.98

8.07 8.10

4.72 4.15

10.54 8.63

8.91 8.81
0 2
4 6
8 10
12 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Fiscal Year
Card Club Gross Revenue
Last Ten Fiscal Years
in Millions
189
2025 2024 2023 2022 2021
Utility Users Tax Electric 3,480,656$ 3,311,316 $ 3,072,555 $ 2,584,392 $ 2,331,492 $ Utility Users Tax Gas 872,589 793,877 1,177,694 837,674 648,472 Utility Users Tax Electric Service Provider 472,206 429,601 324,189 323,978 199,496 Utility Users Tax Gas-Non Core 80,816 112,050 127,587 111,839 88,421 UUT-Mobile/Cellular Telephones 254,066 235,814 240,469 216,708 181,548 UUT-Long Distance Telephone/Non Cellular 355,562 371,199 439,504 417,966 458,602 Utility Users Tax Water 1,272,146 1,097,773 898,171 930,300 947,276 UUT-Prepaid Mobile Telephone 41,926 52,680 37,681 58,537 115,493 TOTAL 6,829,968$ 6,404,308 $ 6,317,851 $ 5,481,395 $ 4,970,799 $ 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
2024 2023 2022 2021 2020
Apparel Stores 12,346$ 13,531 $ 13,226 $ 13,741 $ 9,294 $ General Merchandise 158,139 161,461 167,198 152,741 127,495 Food Stores 54,453 49,469 48,796 46,264 47,844 Eating and Drinking Places 258,711 247,515 239,633 208,601 169,620 Building Materials 199,026 230,910 269,402 240,132 168,154 Auto Dealers and Supplies 225,322 219,073 163,186 160,972 135,332 Service Stations 101,764 104,240 117,216 92,427 68,200 Other Retail Stores 76,698 82,147 85,951 97,300 89,880 All Other Outlets 481,972 456,515 465,159 404,472 407,807 TOTAL 1,568,431$ 1,564,861 $ 1,569,767 $ 1,416,650 $ 1,223,626 $ 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 2020 through 2024
(in thousands)
191
Certificates of Revenue Pension Subscription Direct
Fiscal Year Population (1) Participation (2) Bonds
Obligation
Bonds
Loan
Payable Liabilities
Purchase
Lease Other Total
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 2024-25 60,263 4,570,000 22,573,174 66,802,423 497,070 - 613,661 - 7,000 95,063,328 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
Leases
Payable
$424
$409
$396
$385
$371
$2,049
$2,258
$2,182
$2,069
$1,895
0 500
1,000
1,500
2,000
2,500
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 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
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% 2024-25 18,807,577 13,982 333,531 19,155,090 9,150,825,275 1.25% 1,895 35,510 5.34% 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 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 2024-25 89,665,046 82,232,610 7,432,436 130,000 54,325 40.32 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 60,785 11,770,000 640,000 - - 11,130,000 5,453,097,097 0.20% 183 2015-16 60,721 9,170,000 460,000 - - 8,710,000 5,686,952,300 0.15% 143 2016-17 61,246 8,710,000 490,000 - - 8,220,000 6,005,395,708 0.14% 134 2017-18 61,042 8,220,000 520,000 - - 7,700,000 6,397,613,521 0.12% 126 2018-19 60,937 7,700,000 550,000 - - 7,150,000 6,800,580,594 0.11% 117 2019-20 60,344 7,150,000 585,000 101,280,000 2,995,000 104,850,000 7,223,980,473 1.45% 1,738 2020-21 59,947 6,565,000 625,000 98,285,000 3,665,001 100,559,999 7,508,508,782 1.34% 1,677 2021-22 59,809 5,940,000 665,000 94,620,000 4,210,000 95,685,000 8,074,173,543 1.19% 1,600 2022-23 60,028 5,275,000 705,000 90,410,000 4,800,000 90,180,000 8,656,755,345 1.04% 1,502 2023-24 60,263 4,570,000 750,000 85,610,000 5,075,001 84,354,999 9,150,825,275 0.92% 1,400 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
$183 $143 $134 $126
$117
$1,738
$1,677
$1,600
$1,502
$1,400
0 200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Fiscal Year
General Bonded Debt Outstanding per Capita
Last Ten Fiscal Years
195
2024-25 Assessed Valuation: $9,150,825,275
Percent City's Share
Total Debt Applicable of Debt
Overlapping Tax and Assessment Debt: 06/30/2025 To City (1) 06/30/2025 Metropolitan Water District 17,155,000$ 0.225 % 38,599 $ Los Angeles Community College District 4,919,505,000 0.770 % 37,880,189 Los Angeles Unified School District 11,745,405,000 0.941 % 110,524,261 California Statewide Communities Development Authority 1915 Act Bonds 6,099,000 100.000 % 6,099,000 TOTAL GROSS OVERLAPPING TAX AND ASSESSMENT DEBT 154,542,049$ Less: Los Angeles Unified School District supported general obligation bonds 4,340,177 TOTAL NET OVERLAPPING TAX AND ASSESSMENT DEBT 150,201,872$ Direct and Overlapping General Fund Debt
Los Angeles County General Fund Obligations 3,036,637,390$ 0.435 % 13,209,373$ Los Angeles County Superintendent of Schools Certificates of Participation 2,331,775 0.435 % 10,143 Los Angeles Unified School District Certificates of Participation 225,010,000 0.941 % 2,117,344 City of Gardena General Fund Obligations 28,260,905 100.000 % 28,260,905 City of Gardena Pension Obligation Bonds 66,802,423 100.000 % 66,802,423 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT 110,400,188$ TOTAL DIRECT DEBT 95,063,328$
TOTAL GROSS OVERLAPPING DEBT 169,878,909$
TOTAL NET OVERLAPPING DEBT 165,538,732$
GROSS COMBINED TOTAL DEBT 264,942,237$ (2)
NET COMBINED TOTAL DEBT 260,602,060$
Ratios to 2024-25 Assessed Valuation:

Direct Debt ($95,063,328)….......................................................................... 1.04% Total Gross Overlapping Tax and Assessment Debt….................................. 1.69% Total Net Overlapping Tax and Assessment Debt…..................................... .1.64%
Gross Combined Total Debt…....................................................................... 2.90% Net Combined Total Debt….......................................................................... . 2.85%
City of Gardena
Direct and Overlapping Bonded Debt
June 30, 2025
(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
2024-25 2023-24 2022-23 2021-22 2020-21
Assessed valuation $9,150,825,275 $8,656,755,345 $8,074,173,543 $7,508,508,782 $7,223,980,473 Conversion percentage 25% 25% 25% 25% 25%
Adjusted assessed valuation 2,287,706,319 2,164,188,836 2,018,543,386 1,877,127,196 1,805,995,118 Debt limit percentage 15% 15% 15% 15% 15%
Debt limit $343,155,948 $324,628,325 $302,781,508 $281,569,079 $270,899,268 Total net debt applicable to limit:

General obligation bonds - - - - - Legal debt margin $343,155,948 $324,628,325 $302,781,508 $281,569,079 $270,899,268 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
2019-20 2018-19 2017-18 2016-17 2015-16
Assessed valuation $6,800,580,594 $6,397, 613,521 $6,005,395,708 $5, 686,952,300 $5,453,097,097 Conversion percentage 25% 25% 25% 25% 25%
Adjusted assessed valuation 1,700,145, 149 1,599,403,380 1,501,348,927 1,421,738,075 1,363,274,274 Debt limit percentage 15% 15% 15% 15% 15%
Debt limit $255,021,772 $239,910, 507 $225,202,339 $213, 260,711 $204,491,141 Total net debt applicable to limit:

General obligation bonds - - - - - Legal debt margin $255,021,772 $239,910,507 $225,202,339 $213,260,711 $204,491,141 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
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $204
$213
$225
$240
$255
$271
$282
$303
$325
$343
(in Million)
Fiscal Year
Legal Debt Margin
Last Ten Fiscal Years
198

PRINCIPAL INTEREST TOTAL PRINCIPAL INTEREST TOTAL PRINCIPAL INTEREST TOTAL 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 5,275,000$ 1,134,524 $ 6,409,524 $ 8,680,000 $ 3,847,013 $ 12,527,013 $ 1,070,000 $ 229,581 $ 1,299,581$ City of Gardena
Debt Service Payment Schedule
FISCAL
YEAR
2006 A REF COPS 2014 TAXABLE LEASE BONDS 2007A REV REF BONDS 199

PRINCIPAL INTEREST TOTAL PRINCIPAL INTEREST TOTAL PRINCIPAL INTEREST TOTAL 2024-2025 4,800,000 2,827,962 7,627,962 490,000 452,750 942,750 6,195,000 4,082,126 10,277,126 2025-2026 5,075,000 2,746,266 7,821,266 510,000 428,250 938,250 6,545,000 3,919,691 10,464,691 2026-2027 5,175,000 2,641,416 7,816,416 540,000 402,750 942,750 6,735,000 3,729,585 10,464,585 2027-2028 5,295,000 2,518,976 7,813,976 565,000 375,750 940,750 6,945,000 3,516,698 10,461,698 2028-2029 5,440,000 2,377,970 7,817,970 595,000 347,500 942,500 7,185,000 3,279,715 10,464,715 2029-2030 5,590,000 2,227,663 7,817,663 620,000 317,750 937,750 8,160,000 3,027,768 11,187,768 2030-2031 5,750,000 2,067,621 7,817,621 655,000 286,750 941,750 8,055,000 2,746,910 10,801,910 2031-2032 5,920,000 1,897,249 7,817,249 685,000 254,000 939,000 7,840,000 2,466,499 10,306,499 2032-2033 6,105,000 1,714,143 7,819,143 715,000 226,600 941,600 8,115,000 2,194,243 10,309,243 2033-2034 6,295,000 1,521,042 7,816,042 740,000 198,000 938,000 8,390,000 1,907,792 10,297,792 2034-2035 6,500,000 1,315,636 7,815,636 765,000 175,800 940,800 8,695,000 1,612,436 10,307,436 2035-2036 6,720,000 1,097,041 7,817,041 790,000 152,850 942,850 8,500,000 1,299,391 9,799,391 2036-2037 6,975,000 838,052 7,813,052 810,000 129,150 939,150 7,785,000 967,202 8,752,202 2037-2038 7,245,000 569,236 7,814,236 835,000 104,850 939,850 8,080,000 674,086 8,754,086 2038-2039 7,525,000 290,014 7,815,014 860,000 79,800 939,800 8,385,000 369,814 8,754,814 2039-2040 885,000 54,000 939,000 885,000 54,000 939,000 2040-2041 915,000 27,450 942,450 915,000 27,450 942,450 TOTAL 90,410,000$ 26,650,287 $ 117,060,287 $ 11,975,000 $ 4,014,000 $ 15,989,000 $ 117,410,000 $ 35,875,405 $ 153,285,405 $ City of Gardena
Debt Service Payment Schedule (Continued)
ANNUAL BOND OBLIGATIONS2021 LEASE REVENUE BONDS
2020 TAXABLE PENSION

OBLIGATION BONDSFISCAL
YEAR
200
201

City of Gardena

Annual Comprehensive Financial Report
For the Year Ended June 30, 2025

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City of Cit y of Avera geL o s A n geles Avera ge Gardena Per Ca pita Gardena Gardena Gardena Annual Count y Annual Personal Personal LAUSD Gardena Unem ployment Housing Population Percentage Population Percent age Income Income Enrollment Employment Rate Year Units (1) Increase (1) Increase (1,000s) (2) (2) (3) (4) (4) 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% 2,029,673 33,812 557,352 28,400 6.10% 2025 23,060 60,263 0.39% 9,876,811 0.54% 2,139,988 35,510 549,487 30,000 6.20% 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
60,785 60,721
61,246 61,042 60,937
60,344
59,947 59,809
60,028
60,263
58,500
59,000
59,500
60,000
60,500
61,000
61,500
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Calendar Year
City of Gardena Population
Last Ten Calendar Years
202
2020* 2016
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 2.88%
Gardena Memorial Hospital Hospital services 750 2.74%
Nissin Foods Company Manufacturing 550 2.01%
Hustler Casino Casino 465 1.70%
Air Fayre Airline caterers 289 1.05%
Avcorp Manufacturing parts 289 1.05%
Larry Flynt's Lucky Lady Casino Casino 245 0.89%
Southwest Offset Printing Book binding and printing 235 0.86% Kindred Hospital South Bay Hospital services 225 0.82%
Target Retail 200 0.73%
Hustler Casino Casino 777 2.68%
Gardena Memorial Hospita
l Hospital services 756 2.61%
United Parcel Service Inc. Deliver y 754 2.60%
Avcorp Manufacturing parts 562 1.94%
Nissin Foods Food 562 1.94%
Southwest Offset Printing Book binding and printing 366 1.26% Larry Flynt's Lucky Lady Casin
o Casino 347 1.20%
Marukai Corporation Retail 318 1.10%
Target Retail 200 0.69%
Sam's Club Retail 185 0.64%
Total top ten employers 4,037 4,827
Total City Employment1
27,400 29,000
*Used 2020 employment data as 2025 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
2025 2024 2023 2022 2021
Federal Unemployment Rate 4.5% 4.0% 3.8% 3.5% 4.8%
State Unemployment Rate 5.8 5.2 4.6 3.9 6.4
County Unemployment Rate 6.3 6.0 5.0 4.8 9.7
City Unemployment Rate 6.2 6.1 4.7 4.8 9.8
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 2021 through 2025.

City of Gardena
Unemployment Rates
Last Five Calendar Years
204
Function 2024-25 2023-24 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 General government 157 142 130 120 115 151 181 209 186 181 Public safety 128 122 125 124 126 149 140 142 154 160
Public works 46 46 45 46 44 56 47 31 51 50
Community development 26 26 21 15 12 15 18 15 19 18
Transit - GTrans 153 141 143 141 136 165 148 140 140 144 Total 510 477 464 446 433 536 534 537 550 553
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
553
550
537
534
536
433
446
464
477
510
0 100
200
300
400
500
600
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 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 245 239 239 224 6/30/2025 Gardena Management Employees Organization 18 17 19 19 6/30/2025 Gardena Police Officers Association 82 84 89 84 7/31/2024 Gardena Police Executive Association 6966 N / A
351 349 353 333
Source: City of Gardena
City of Gardena
Employee Union Representation
206
Function 2024-25 2023-24 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 Police:

Arrests 1,702 1,591 1,921 1,674 1,547 1,761 2,183 2,901 2,642 2,423 Number of parking citations issued 31,780 19,479 17,942 20,293 30,000 27,568 29,868 29,254 23,145 22,665 Public works:

Street resurfacing (miles) 0.00 4.29 4.17 3.58 2.25 5.68 19.06 0.49 4.52 2.95 Traffic lights and signals 91 91 91 91 91 91 91 91 91 90 Parks and recreation:

Number of recreation classes 228 151 216 272 0 432 1,374 1,226 1,410 1,466 Number of facility rentals 10,182 9,123 2,717 584 0 53 1,977 1,112 1,222 1,221 Transit:

Number of customers served
(1) 2,471,629 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 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 2024-25 2023-24 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 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 25.0 -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 3,250 3,337 3,337 3,392 3,327 3,321 3,350 -City maintenance 194 194 194 194 193 193 194 191 198 385 Traffic signals 69 69 69 69 69 69 69 69 69 70
Traffic signals (shared) 22 22 22 22 22 22 22 22 22 23
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 487 487 492 492 492 492 492 492 595 595
NOTES:
(1) Street lights 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
209

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, 2025, 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 4, 2025.

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