Hawthorne City Council
January 28, 2025

CHECK: H010125 TO FISCAL 2025/07 07/01/2023 TO 06/30/2025

VENDOR NAME

DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION INVOICE: 10692
VENDOR TOTALS 12,250.00 YTD INVOICED 33,296.00 YTD PAID 1,750.00 122420 FLOYD JR., KING S.
89860 01/01/25 76006 T 01/01/25 82044100 45904 HOUSING VOUCHER 2,320.00 INVOICE: 10555
VENDOR TOTALS 16,232.00 YTD INVOICED 44,048.00 YTD PAID 2,320.00 120780 FRANCO, SILVANO
90285 01/01/25 76007 T 01/01/25 81544100 45904 HOUSING VOUCHER 886.00 INVOICE: 4617
VENDOR TOTALS 6,207.00 YTD INVOICED 16,910.00 YTD PAID 886.00 105403 FRANCO, WALTER & SANDRA
90199 01/01/25 76008 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,511.00 INVOICE: 8033
VENDOR TOTALS 10,577.00 YTD INVOICED 36,869.00 YTD PAID 1,511.00 122987 FRANKLIN DENNIS CASE, TRUSTEE OF DENNIS CASE TRUST 90200 01/01/25 76009 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,073.00 INVOICE: 10612
VENDOR TOTALS 7,511.00 YTD INVOICED 20,591.00 YTD PAID 1,073.00 93783 FREDERIKSEN, PETER
89861 01/01/25 76010 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,375.00 INVOICE: 10062
89862 01/01/25 76010 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,779.00 INVOICE: 10669
89863 01/01/25 76010 T 01/01/25 81544100 45904 HOUSING VOUCHER 849.00 INVOICE: 8985
VENDOR TOTALS 26,366.00 YTD INVOICED 81,902.00 YTD PAID 4,003.00 108406 FURBERT, REGINALD
89864 01/01/25 76011 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,963.00 INVOICE: 10244
89865 01/01/25 76011 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,312.00 INVOICE: 8573
89866 01/01/25 76011 T 01/01/25 81544100 45904 HOUSING VOUCHER 837.00 INVOICE: 9792
VENDOR TOTALS 28,924.00 YTD INVOICED 77,564.00 YTD PAID 4,112.00 103655 GAMBOA, LUIS
89950 01/01/25 76012 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,417.00 INVOICE: 10531
City of Hawthorne, CA

PAID INVOICES REPORT
Report generated: 12/19/2024 09:02
User: sdixon
Program ID: appdwarr

CHECK: H010125 TO FISCAL 2025/07 07/01/2023 TO 06/30/2025

VENDOR NAME

DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION VENDOR TOTALS 9,829.00 YTD INVOICED 25,870.00 YTD PAID 1,417.00 118612 GARG, ANU
90202 01/01/25 76013 T 01/01/25 81544100 45904 HOUSING VOUCHER 2,076.00 INVOICE: 10756
90203 01/01/25 76013 T 01/01/25 81544100 45904 HOUSING VOUCHER 83.00 INVOICE: 8864
VENDOR TOTALS 15,113.00 YTD INVOICED 33,947.00 YTD PAID 2,159.00 94471 GARG, BASANT
89867 01/01/25 76014 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,527.00 INVOICE: 10088
89868 01/01/25 76014 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,501.00 INVOICE: 10285
89869 01/01/25 76014 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,534.00 INVOICE: 10365
89870 01/01/25 76014 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,604.00 INVOICE: 10402
89871 01/01/25 76014 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,478.00 INVOICE: 10416
89872 01/01/25 76014 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,535.00 INVOICE: 10575
89873 01/01/25 76014 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,154.00 INVOICE: 10811
89874 01/01/25 76014 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,506.00 INVOICE: 8286
89875 01/01/25 76014 T 01/01/25 81544100 45904 HOUSING VOUCHER 953.00 INVOICE: 8551
89876 01/01/25 76014 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,530.00 INVOICE: 8668
89877 01/01/25 76014 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,567.00 INVOICE: 9004
89878 01/01/25 76014 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,525.00 INVOICE: 9700
VENDOR TOTALS 124,100.00 YTD INVOICED 333,701.00 YTD PAID 17,414.00 119132 GLADNEY, BEVERLY
89880 01/01/25 76015 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,370.00 INVOICE: 9879
VENDOR TOTALS 9,590.00 YTD INVOICED 25,706.00 YTD PAID 1,370.00 111586 GOFF, MARK
89881 01/01/25 76016 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,306.00 INVOICE: 10641
VENDOR TOTALS 9,142.00 YTD INVOICED 25,265.00 YTD PAID 1,306.00 City of Hawthorne, CA

PAID INVOICES REPORT
Report generated: 12/19/2024 09:02
User: sdixon
Program ID: appdwarr

CHECK: H010125 TO FISCAL 2025/07 07/01/2023 TO 06/30/2025

VENDOR NAME

DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 105399 GOLBAZ-HAGH, MASOUD
89959 01/01/25 76017 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,539.00 INVOICE: 4601
VENDOR TOTALS 10,773.00 YTD INVOICED 28,217.00 YTD PAID 1,539.00 120993 H&JR DEVELOPMENT LLC.
89882 01/01/25 76018 T 01/01/25 82044100 45904 HOUSING VOUCHER 2,630.00 INVOICE: 10556
89883 01/01/25 76018 T 01/01/25 82044100 45904 HOUSING VOUCHER 2,719.00 INVOICE: 10805
89884 01/01/25 76018 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,770.00 INVOICE: 9817
VENDOR TOTALS 43,891.00 YTD INVOICED 94,360.00 YTD PAID 7,119.00 100966 HANAFI, MOHAMMAD
90153 01/01/25 76019 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,660.00 INVOICE: 4738
VENDOR TOTALS 11,768.00 YTD INVOICED 27,842.00 YTD PAID 1,660.00 101692 HANNA, ATEF
89709 01/01/25 76020 T 01/01/25 81544100 45904 HOUSING VOUCHER 495.00 INVOICE: 10036
89710 01/01/25 76020 T 01/01/25 81544100 45904 HOUSING VOUCHER 351.00 INVOICE: 4887
VENDOR TOTALS 5,971.00 YTD INVOICED 22,029.00 YTD PAID 846.00 119116 HANNA, JOSEPH
89901 01/01/25 76021 T 01/01/25 81544100 45904 HOUSING VOUCHER 967.00 INVOICE: 5082
VENDOR TOTALS 6,819.00 YTD INVOICED 18,138.00 YTD PAID 967.00 122151 HAWK MGMT, INC.
89885 01/01/25 76022 T 01/01/25 81544100 45904 HOUSING VOUCHER 988.00 INVOICE: 8641
89886 01/01/25 76022 T 01/01/25 81544100 45904 HOUSING VOUCHER 878.00 INVOICE: 9028
VENDOR TOTALS 12,606.00 YTD INVOICED 34,116.00 YTD PAID 1,866.00 122211 HAWTHORNE CHATEAU APTS., LTD
89887 01/01/25 76023 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,402.00 INVOICE: 9620
VENDOR TOTALS 9,814.00 YTD INVOICED 26,007.00 YTD PAID 1,402.00 121644 HAWTHORNE PACIFIC ASSOCIATES, LP
City of Hawthorne, CA

PAID INVOICES REPORT
Report generated: 12/19/2024 09:02
User: sdixon
Program ID: appdwarr

CHECK: H010125 TO FISCAL 2025/07 07/01/2023 TO 06/30/2025

VENDOR NAME

DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 90204 01/01/25 76024 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,159.00 INVOICE: 10779
VENDOR TOTALS 8,113.00 YTD INVOICED 12,749.00 YTD PAID 1,159.00 115163 HAYWOOD, LARON
89919 01/01/25 76025 T 01/01/25 82044100 45904 HOUSING VOUCHER 2,202.00 INVOICE: 10795
89920 01/01/25 76025 T 01/01/25 81544100 45904 HOUSING VOUCHER 935.00 INVOICE: 4766
VENDOR TOTALS 24,161.00 YTD INVOICED 35,423.00 YTD PAID 3,137.00 113815 HEIBEL, WILLIAM
89888 01/01/25 76026 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,410.00 INVOICE: 2229
VENDOR TOTALS 10,259.00 YTD INVOICED 24,877.00 YTD PAID 1,410.00 101156 HEMPHILL, RUBY
90330 01/01/25 76027 T 01/01/25 83440010 45904 HOUSING VOUCHER 983.00 INVOICE: 10774
VENDOR TOTALS 6,881.00 YTD INVOICED 12,524.00 YTD PAID 983.00 118411 HENDERSON TRUST & RICK AND, COLLETE HENDERSON
90325 01/01/25 76028 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,288.00 INVOICE: 10103
90326 01/01/25 76028 T 01/01/25 84440010 45904 HOUSING VOUCHER 649.00 INVOICE: 10747
90327 01/01/25 76028 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,700.00 INVOICE: 9390
VENDOR TOTALS 21,573.00 YTD INVOICED 55,974.00 YTD PAID 3,637.00 110755 HENRY, JAMES R.
89894 01/01/25 76029 T 01/01/25 81544100 45904 HOUSING VOUCHER 776.00 INVOICE: 7021
89895 01/01/25 76029 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,331.00 INVOICE: 9153
VENDOR TOTALS 14,298.00 YTD INVOICED 26,138.00 YTD PAID 2,107.00 123723 HICKS, KELVIN
90239 01/01/25 76030 T 01/01/25 81544100 45904 HOUSING VOUCHER 816.00 INVOICE: 10340
VENDOR TOTALS 5,400.00 YTD INVOICED 12,858.00 YTD PAID 816.00 113153 HINKLE, M. SIMONNE
89889 01/01/25 76031 T 01/01/25 81544100 45904 HOUSING VOUCHER 766.00 City of Hawthorne, CA

PAID INVOICES REPORT
Report generated: 12/19/2024 09:02
User: sdixon
Program ID: appdwarr

CHECK: H010125 TO FISCAL 2025/07 07/01/2023 TO 06/30/2025

VENDOR NAME

DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION INVOICE: 10534
89890 01/01/25 76031 T 01/01/25 81544100 45904 HOUSING VOUCHER 931.00 INVOICE: 9656
VENDOR TOTALS 11,917.00 YTD INVOICED 32,530.00 YTD PAID 1,697.00 123622 HIRATA PROPERTIES, LLC.
90205 01/01/25 76032 T 01/01/25 82044100 45904 HOUSING VOUCHER 1,750.00 INVOICE: 10133
90206 01/01/25 76032 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,660.00 INVOICE: 10390
90207 01/01/25 76032 T 01/01/25 81544100 45904 HOUSING VOUCHER 663.00 INVOICE: 8096
90208 01/01/25 76032 T 01/01/25 81544100 45904 HOUSING VOUCHER 2,135.00 INVOICE: 8997
90209 01/01/25 76032 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,340.00 INVOICE: 9456
90210 01/01/25 76032 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,474.00 INVOICE: 9520
VENDOR TOTALS 72,001.00 YTD INVOICED 193,905.00 YTD PAID 9,022.00 112248 HOANG, NGUYET
89989 01/01/25 76033 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,064.00 INVOICE: 8788
VENDOR TOTALS 7,448.00 YTD INVOICED 19,662.00 YTD PAID 1,064.00 110936 HOUSING AUTHORITY OF THE, COUNTY OF SAN BERNARDIN 89636 01/01/25 76034 T 01/01/25 83440020 45944 ADMIN FEES PAID - VOUCHER 100.28 INVOICE: 10740
89637 01/01/25 76034 T 01/01/25 81044010 45944 ADMIN FEES PAID - VOUCHER 100.28 INVOICE: 4961
90049 01/01/25 76034 T 01/01/25 83440010 45904 HOUSING VOUCHER 2,324.00 INVOICE: 10740
90050 01/01/25 76034 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,233.00 INVOICE: 4961
VENDOR TOTALS 29,653.48 YTD INVOICED 29,653.48 YTD PAID 3,757.56 116670 HOWARD, CHRISTINE
89891 01/01/25 76035 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,708.00 INVOICE: 10509
89892 01/01/25 76035 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,840.00 INVOICE: 10566
VENDOR TOTALS 24,121.00 YTD INVOICED 63,348.00 YTD PAID 3,548.00 123879 HRW 13700 KORNBLUM LLC
90269 01/01/25 76036 T 01/01/25 83440010 45904 HOUSING VOUCHER 1,381.00 INVOICE: 10778
City of Hawthorne, CA

PAID INVOICES REPORT
Report generated: 12/19/2024 09:02
User: sdixon
Program ID: appdwarr

CHECK: H010125 TO FISCAL 2025/07 07/01/2023 TO 06/30/2025

VENDOR NAME

DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION VENDOR TOTALS 9,667.00 YTD INVOICED 13,810.00 YTD PAID 1,381.00 96028 HUBERT-MITCHELL, JUDITH
89911 01/01/25 76037 T 01/01/25 81544100 45904 HOUSING VOUCHER 625.00 INVOICE: 4786
89912 01/01/25 76037 T 01/01/25 81544100 45904 HOUSING VOUCHER 392.00 INVOICE: 4885
VENDOR TOTALS 6,999.00 YTD INVOICED 19,421.00 YTD PAID 1,017.00 122522 HUNT ENTERPRISES, INC.
89893 01/01/25 76038 T 01/01/25 81544100 45904 HOUSING VOUCHER 383.00 INVOICE: 10600
VENDOR TOTALS 2,681.00 YTD INVOICED 7,539.00 YTD PAID 383.00 123479 INFINITY PROPERTY MANAGEMENT INC.
90211 01/01/25 76039 T 01/01/25 83440010 45904 HOUSING VOUCHER 790.00 INVOICE: 10716
90212 01/01/25 76039 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,496.00 INVOICE: 10722
VENDOR TOTALS 15,796.00 YTD INVOICED 42,684.00 YTD PAID 2,286.00 123217 IRD, LP
90213 01/01/25 76040 T 01/01/25 83440010 45904 HOUSING VOUCHER 1,441.00 INVOICE: 10701
90214 01/01/25 76040 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,144.00 INVOICE: 10755
VENDOR TOTALS 15,584.00 YTD INVOICED 34,180.00 YTD PAID 2,585.00 123396 JAMISON, LARRY D.
90224 01/01/25 76041 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,307.00 INVOICE: 10730
VENDOR TOTALS 9,129.00 YTD INVOICED 23,847.00 YTD PAID 1,307.00 114933 JEFFERIES, JOYCE E.
89908 01/01/25 76042 T 01/01/25 81544100 45904 HOUSING VOUCHER 304.00 INVOICE: 9319
VENDOR TOTALS 2,350.00 YTD INVOICED 7,048.00 YTD PAID 304.00 122956 JENNIFER PAZZIA
89711 01/01/25 76043 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,900.00 INVOICE: 4652
VENDOR TOTALS 13,300.00 YTD INVOICED 34,273.00 YTD PAID 1,900.00 City of Hawthorne, CA

PAID INVOICES REPORT
Report generated: 12/19/2024 09:02
User: sdixon
Program ID: appdwarr

CHECK: H010125 TO FISCAL 2025/07 07/01/2023 TO 06/30/2025

VENDOR NAME

DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 123367 JODELE, TOMAS
90332 01/01/25 76044 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,302.00 INVOICE: 1708
VENDOR TOTALS 9,114.00 YTD INVOICED 24,972.00 YTD PAID 1,302.00 119730 JOHNSON, NORIKO
89897 01/01/25 76045 T 01/01/25 81544100 45904 HOUSING VOUCHER 835.00 INVOICE: 10106
VENDOR TOTALS 5,850.00 YTD INVOICED 16,007.00 YTD PAID 835.00 108271 JOHNSON, STEVE A.
90072 01/01/25 76046 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,182.00 INVOICE: 8398
VENDOR TOTALS 8,274.00 YTD INVOICED 24,048.00 YTD PAID 1,182.00 101465 JOHNSON, TERRY
90077 01/01/25 76047 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,532.00 INVOICE: 10568
90078 01/01/25 76047 T 01/01/25 81544100 45904 HOUSING VOUCHER 961.00 INVOICE: 9752
VENDOR TOTALS 16,911.00 YTD INVOICED 43,547.00 YTD PAID 2,493.00 123246 JONATHAN WEIR
90297 01/01/25 76048 T 01/01/25 81544100 45904 HOUSING VOUCHER 621.00 INVOICE: 8824
VENDOR TOTALS 4,347.00 YTD INVOICED 18,463.00 YTD PAID 621.00 123425 JR AJ, LLC.
89612 11/01/24 76049 T 01/01/25 81544100 45904 HOUSING VOUCHER 813.00 INVOICE: 10826-1
90256 01/01/25 76049 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,661.00 INVOICE: 10696
90280 01/01/25 76049 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,626.00 INVOICE: 10826
90291 01/01/25 76049 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,278.00 INVOICE: 8412
90303 01/01/25 76049 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,640.00 INVOICE: 9482
VENDOR TOTALS 34,544.00 YTD INVOICED 98,895.00 YTD PAID 7,018.00 123887 JRAB PROPERTIES, LLC
90237 01/01/25 76050 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,896.00 INVOICE: 10305
City of Hawthorne, CA

PAID INVOICES REPORT
Report generated: 12/19/2024 09:02
User: sdixon
Program ID: appdwarr

CHECK: H010125 TO FISCAL 2025/07 07/01/2023 TO 06/30/2025

VENDOR NAME

DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION VENDOR TOTALS 13,272.00 YTD INVOICED 20,198.00 YTD PAID 1,896.00 118833 KANNIKE-MARTINS, JOSEPHINE
89904 01/01/25 76051 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,655.00 INVOICE: 10559
89905 01/01/25 76051 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,430.00 INVOICE: 10563
89906 01/01/25 76051 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,664.00 INVOICE: 10806
VENDOR TOTALS 29,421.00 YTD INVOICED 68,346.00 YTD PAID 4,749.00 124222 KELLY DAVID FRENCH TRUST
89940 01/01/25 76052 T 01/01/25 81544100 45904 HOUSING VOUCHER 594.00 INVOICE: 8649
VENDOR TOTALS 1,839.00 YTD INVOICED 1,839.00 YTD PAID 594.00 121877 KGM LLC.
89914 01/01/25 76053 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,453.00 INVOICE: 10467
VENDOR TOTALS 8,731.00 YTD INVOICED 10,311.00 YTD PAID 1,453.00 117978 KOBAYASHI, DAVID
90191 01/01/25 76054 T 01/01/25 81544100 45904 HOUSING VOUCHER 415.00 INVOICE: 10060
90192 01/01/25 76054 T 01/01/25 81544100 45904 HOUSING VOUCHER 450.00 INVOICE: 8860
VENDOR TOTALS 6,191.00 YTD INVOICED 18,578.00 YTD PAID 865.00 105118 KOLBY JR., RAYMOND T
90323 01/01/25 76055 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,231.00 INVOICE: 9342
VENDOR TOTALS 10,597.00 YTD INVOICED 28,917.00 YTD PAID 1,231.00 123939 KOUTEK, NORMAN
90317 01/01/25 76056 T 01/01/25 81544100 45904 HOUSING VOUCHER 679.00 INVOICE: 10775
90318 01/01/25 76056 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,672.00 INVOICE: 9774
VENDOR TOTALS 16,457.00 YTD INVOICED 20,845.00 YTD PAID 2,351.00 123700 KSR HAWTHORNE 1 LLC
90283 01/01/25 76057 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,464.00 INVOICE: 4101
City of Hawthorne, CA

PAID INVOICES REPORT
Report generated: 12/19/2024 09:02
User: sdixon
Program ID: appdwarr

CHECK: H010125 TO FISCAL 2025/07 07/01/2023 TO 06/30/2025

VENDOR NAME

DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION VENDOR TOTALS 10,248.00 YTD INVOICED 36,497.00 YTD PAID 1,464.00 123701 KSR HAWTHORNE 2 LLC
90229 01/01/25 76058 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,385.00 INVOICE: 10126
90235 01/01/25 76058 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,099.00 INVOICE: 10277
90304 01/01/25 76058 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,389.00 INVOICE: 9540
VENDOR TOTALS 27,150.00 YTD INVOICED 75,169.00 YTD PAID 3,873.00 123855 KSR SAN BERNARDINO LLC
90308 01/01/25 76059 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,127.00 INVOICE: 9764
VENDOR TOTALS 7,421.00 YTD INVOICED 11,886.00 YTD PAID 1,127.00 123977 KUETEMAN, HELEN KARLENE
90254 01/01/25 76060 T 01/01/25 83440010 45904 HOUSING VOUCHER 749.00 INVOICE: 10693
VENDOR TOTALS 5,243.00 YTD INVOICED 6,891.00 YTD PAID 749.00 108846 KUHR ENTERPRISES
89917 01/01/25 76061 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,086.00 INVOICE: 9648
VENDOR TOTALS 7,493.00 YTD INVOICED 19,136.00 YTD PAID 1,086.00 121862 KUMAMOTO, BRIAN A.
89927 01/01/25 76062 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,428.00 INVOICE: 10459
VENDOR TOTALS 9,883.00 YTD INVOICED 25,975.00 YTD PAID 1,428.00 120290 LAM, DIEP
89842 01/01/25 76063 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,780.00 INVOICE: 7050
VENDOR TOTALS 12,460.00 YTD INVOICED 32,097.00 YTD PAID 1,780.00 113862 LANEY, GARY
89918 01/01/25 76064 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,181.00 INVOICE: 9654
VENDOR TOTALS 7,413.00 YTD INVOICED 18,198.00 YTD PAID 1,181.00 121310 LARSON, KIRBY
89922 01/01/25 76065 T 01/01/25 81544100 45904 HOUSING VOUCHER 943.00 City of Hawthorne, CA

PAID INVOICES REPORT
Report generated: 12/19/2024 09:02
User: sdixon
Program ID: appdwarr

CHECK: H010125 TO FISCAL 2025/07 07/01/2023 TO 06/30/2025

VENDOR NAME

DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION INVOICE: 4128
89923 01/01/25 76065 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,388.00 INVOICE: 9167
VENDOR TOTALS 24,687.00 YTD INVOICED 70,356.00 YTD PAID 2,331.00 124021 LAWRENCE AND DONNA COCKE FAMILY TRUST
90272 01/01/25 76066 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,425.00 INVOICE: 10797
90275 01/01/25 76066 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,657.00 INVOICE: 10807
VENDOR TOTALS 16,934.00 YTD INVOICED 18,359.00 YTD PAID 3,082.00 108097 LE, TIEN
89926 01/01/25 76067 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,195.00 INVOICE: 10225
89928 01/01/25 76067 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,848.00 INVOICE: 10610
VENDOR TOTALS 21,301.00 YTD INVOICED 57,253.00 YTD PAID 3,043.00 101260 LEE, JUXIN (BOB)
89913 01/01/25 76068 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,725.00 INVOICE: 2638
VENDOR TOTALS 12,075.00 YTD INVOICED 30,855.00 YTD PAID 1,725.00 123397 LEMOLI PARTNERS-93, A CALIFORNIA PARTNERSHIP
90313 01/01/25 76069 T 01/01/25 82044100 45904 HOUSING VOUCHER 2,517.00 INVOICE: 10719
VENDOR TOTALS 17,414.00 YTD INVOICED 44,892.00 YTD PAID 2,517.00 122038 LEONARD, JOHN
89944 01/01/25 76070 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,690.00 INVOICE: 10408
VENDOR TOTALS 11,605.00 YTD INVOICED 29,689.00 YTD PAID 1,690.00 123113 LESTER & JENNIFER CANO
89943 01/01/25 76071 T 01/01/25 81544100 45904 HOUSING VOUCHER 507.00 INVOICE: 9971
VENDOR TOTALS 3,549.00 YTD INVOICED 8,889.00 YTD PAID 507.00 120271 LEWIS, VANESSA
90095 01/01/25 76072 T 01/01/25 81544100 45904 HOUSING VOUCHER 127.00 INVOICE: 10177
City of Hawthorne, CA

PAID INVOICES REPORT
Report generated: 12/19/2024 09:02
User: sdixon
Program ID: appdwarr

CHECK: H010125 TO FISCAL 2025/07 07/01/2023 TO 06/30/2025

VENDOR NAME

DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION VENDOR TOTALS 1,404.00 YTD INVOICED 6,126.00 YTD PAID 127.00 124277 LFD LEMOLI LLC.
89614 11/01/24 76073 T 01/01/25 81544100 45904 HOUSING VOUCHER 361.00 INVOICE: 10803-1
90044 01/01/25 76073 T 01/01/25 81544100 45904 HOUSING VOUCHER 903.00 INVOICE: 10803
90045 01/01/25 76073 T 01/01/25 82044100 45904 HOUSING VOUCHER 1,701.00 INVOICE: 10818
VENDOR TOTALS 6,476.00 YTD INVOICED 6,476.00 YTD PAID 2,965.00 117147 LIMRA, LLC.
89945 01/01/25 76074 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,940.00 INVOICE: 8900
VENDOR TOTALS 13,580.00 YTD INVOICED 37,148.00 YTD PAID 1,940.00 94084 LINCIR, TOM
90085 01/01/25 76075 T 01/01/25 81544100 45904 HOUSING VOUCHER 680.00 INVOICE: 8500
VENDOR TOTALS 4,744.00 YTD INVOICED 19,132.00 YTD PAID 680.00 123316 LING, PAUL SIONG KUONG
90133 01/01/25 76076 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,150.00 INVOICE: 4974
VENDOR TOTALS 8,120.00 YTD INVOICED 25,360.00 YTD PAID 1,150.00 123419 LING, PAUL SIONG KUONG
90261 01/01/25 76077 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,469.00 INVOICE: 10725
VENDOR TOTALS 9,677.00 YTD INVOICED 24,599.00 YTD PAID 1,469.00 122559 LISSE MO, LLC.
89946 01/01/25 76078 T 01/01/25 81544100 45904 HOUSING VOUCHER 807.00 INVOICE: 4714
VENDOR TOTALS 6,729.00 YTD INVOICED 18,125.00 YTD PAID 807.00 122235 LLS GRP #3, LLC
89947 01/01/25 76079 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,661.00 INVOICE: 3883
VENDOR TOTALS 21,207.00 YTD INVOICED 59,069.00 YTD PAID 1,661.00 124235 LO, CHING PING
89613 11/01/24 76080 T 01/01/25 81544100 45904 HOUSING VOUCHER 792.00 City of Hawthorne, CA

PAID INVOICES REPORT
Report generated: 12/19/2024 09:02
User: sdixon
Program ID: appdwarr

CHECK: H010125 TO FISCAL 2025/07 07/01/2023 TO 06/30/2025

VENDOR NAME

DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION INVOICE: 10819-1
89807 01/01/25 76080 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,584.00 INVOICE: 10819
VENDOR TOTALS 3,960.00 YTD INVOICED 3,960.00 YTD PAID 2,376.00 121100 LOMBARDO, JEANINE
90286 01/01/25 76081 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,657.00 INVOICE: 4729
VENDOR TOTALS 11,599.00 YTD INVOICED 32,230.00 YTD PAID 1,657.00 124126 LOUIS HAHNE REVOCABLE TRUST
90300 01/01/25 76082 T 01/01/25 81544100 45904 HOUSING VOUCHER 691.00 INVOICE: 9139
VENDOR TOTALS 5,233.00 YTD INVOICED 5,233.00 YTD PAID 691.00 103811 LOZANO, JESUS AND NATALIA
89948 01/01/25 76083 T 01/01/25 81544100 45904 HOUSING VOUCHER 327.00 INVOICE: 9407
VENDOR TOTALS 2,537.00 YTD INVOICED 8,171.00 YTD PAID 327.00 112319 LUCHA, ENRIQUE
89855 01/01/25 76084 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,115.00 INVOICE: 10545
VENDOR TOTALS 7,847.00 YTD INVOICED 21,535.00 YTD PAID 1,115.00 100503 LY, ANDY QUOC
89929 01/01/25 76085 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,247.00 INVOICE: 10651
VENDOR TOTALS 8,752.00 YTD INVOICED 23,625.00 YTD PAID 1,247.00 119952 MALEK, FARSHID
89939 01/01/25 76086 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,571.00 INVOICE: 8488
VENDOR TOTALS 10,586.00 YTD INVOICED 27,449.00 YTD PAID 1,571.00 101822 MALONEY, KEVIN
90222 01/01/25 76087 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,010.00 INVOICE: 10117
90223 01/01/25 76087 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,249.00 INVOICE: 9435
VENDOR TOTALS 15,829.00 YTD INVOICED 38,015.00 YTD PAID 2,259.00 104604 MAO, NICK
City of Hawthorne, CA

PAID INVOICES REPORT
Report generated: 12/19/2024 09:02
User: sdixon
Program ID: appdwarr

CHECK: H010125 TO FISCAL 2025/07 07/01/2023 TO 06/30/2025

VENDOR NAME

DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 89990 01/01/25 76088 T 01/01/25 81544100 45904 HOUSING VOUCHER 44.00 INVOICE: 9782
VENDOR TOTALS 308.00 YTD INVOICED 647.00 YTD PAID 44.00 120949 MAOR, NOAM
89938 01/01/25 76089 T 01/01/25 81544100 45904 HOUSING VOUCHER 992.00 INVOICE: 8323
VENDOR TOTALS 6,944.00 YTD INVOICED 18,317.00 YTD PAID 992.00 124192 MARIN MANAGEMENT, LLC.
90279 01/01/25 76090 T 01/01/25 83440010 45904 HOUSING VOUCHER 1,854.00 INVOICE: 10815
VENDOR TOTALS 6,399.00 YTD INVOICED 6,399.00 YTD PAID 1,854.00 115853 MARSELA DEVELOPMENT CORP.
89956 01/01/25 76091 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,395.00 INVOICE: 9500
VENDOR TOTALS 9,647.00 YTD INVOICED 24,917.00 YTD PAID 1,395.00 107637 MARSH, JAMES
89957 01/01/25 76092 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,827.00 INVOICE: 9184
VENDOR TOTALS 12,789.00 YTD INVOICED 33,451.00 YTD PAID 1,827.00 124280 MASSIMO, DONALD
89843 01/01/25 76093 T 01/01/25 81544100 45904 HOUSING VOUCHER 2,376.00 INVOICE: 10817
VENDOR TOTALS 6,811.00 YTD INVOICED 6,811.00 YTD PAID 2,376.00 122935 MATTHEWS FAMILY LIVING TRUST
89960 01/01/25 76094 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,500.00 INVOICE: 10636
VENDOR TOTALS 10,500.00 YTD INVOICED 28,500.00 YTD PAID 1,500.00 121781 MEA PROPERTIES, LLC.
90314 01/01/25 76095 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,003.00 INVOICE: 8417
VENDOR TOTALS 7,021.00 YTD INVOICED 17,950.00 YTD PAID 1,003.00 120580 MESA PARK SOUTH, LLC.
89961 01/01/25 76096 T 01/01/25 81544100 45904 HOUSING VOUCHER 801.00 INVOICE: 9563
City of Hawthorne, CA

PAID INVOICES REPORT
Report generated: 12/19/2024 09:02
User: sdixon
Program ID: appdwarr

CHECK: H010125 TO FISCAL 2025/07 07/01/2023 TO 06/30/2025

VENDOR NAME

DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION VENDOR TOTALS 10,605.00 YTD INVOICED 30,807.00 YTD PAID 801.00 115116 MICHAEL, SAMIR
89962 01/01/25 76097 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,399.00 INVOICE: 10089
89963 01/01/25 76097 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,655.00 INVOICE: 10300
89964 01/01/25 76097 T 01/01/25 81544100 45904 HOUSING VOUCHER 2,328.00 INVOICE: 8632
VENDOR TOTALS 37,338.00 YTD INVOICED 66,494.00 YTD PAID 5,382.00 104002 MINGO, WILLIAM & RUBY
89966 01/01/25 76098 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,190.00 INVOICE: 9771
VENDOR TOTALS 8,330.00 YTD INVOICED 26,470.00 YTD PAID 1,190.00 123677 MITTAL ASSETS, LP.
90265 01/01/25 76099 T 01/01/25 83440010 45904 HOUSING VOUCHER 467.00 INVOICE: 10760
VENDOR TOTALS 3,831.00 YTD INVOICED 13,263.00 YTD PAID 467.00 123465 MITTAL LEGACY, LP.
90246 01/01/25 76100 T 01/01/25 81544100 45904 HOUSING VOUCHER 504.00 INVOICE: 10603
90276 01/01/25 76100 T 01/01/25 81544100 45904 HOUSING VOUCHER 2,232.00 INVOICE: 10808
VENDOR TOTALS 12,456.00 YTD INVOICED 18,256.00 YTD PAID 2,736.00 123111 ML-12020 GREVILLEA LLC
89967 01/01/25 76101 T 01/01/25 81544100 45904 HOUSING VOUCHER 358.00 INVOICE: 10039
VENDOR TOTALS 2,506.00 YTD INVOICED 12,516.00 YTD PAID 358.00 111620 MOBRICI, ALBERTO
89687 01/01/25 76102 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,167.00 INVOICE: 10449
VENDOR TOTALS 13,092.00 YTD INVOICED 36,611.00 YTD PAID 1,167.00 105400 MOGEL, JOSEPH
89902 01/01/25 76103 T 01/01/25 81544100 45904 HOUSING VOUCHER 875.00 INVOICE: 10732
89903 01/01/25 76103 T 01/01/25 81544100 45904 HOUSING VOUCHER 978.00 INVOICE: 9534
City of Hawthorne, CA

PAID INVOICES REPORT
Report generated: 12/19/2024 09:02
User: sdixon
Program ID: appdwarr

CHECK: H010125 TO FISCAL 2025/07 07/01/2023 TO 06/30/2025

VENDOR NAME

DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION VENDOR TOTALS 12,387.00 YTD INVOICED 37,880.00 YTD PAID 1,853.00 112018 MONARK, LP
89968 01/01/25 76104 T 01/01/25 84440010 45904 HOUSING VOUCHER 1,688.00 INVOICE: 10752
VENDOR TOTALS 11,816.00 YTD INVOICED 32,984.00 YTD PAID 1,688.00 99468 MONGELLI, RICK
90037 01/01/25 76105 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,661.00 INVOICE: 8707
VENDOR TOTALS 11,139.00 YTD INVOICED 27,913.00 YTD PAID 1,661.00 107461 MONICA WUERTH DAVIS
90315 01/01/25 76106 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,738.00 INVOICE: 10043
90316 01/01/25 76106 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,109.00 INVOICE: 10634
VENDOR TOTALS 21,757.00 YTD INVOICED 60,330.00 YTD PAID 2,847.00 30143 MONUS, BELA C
89969 01/01/25 76107 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,470.00 INVOICE: 10281
89970 01/01/25 76107 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,795.00 INVOICE: 10493
89971 01/01/25 76107 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,295.00 INVOICE: 8113
89972 01/01/25 76107 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,377.00 INVOICE: 8807
89973 01/01/25 76107 T 01/01/25 81544100 45904 HOUSING VOUCHER 2,440.00 INVOICE: 9420
VENDOR TOTALS 55,843.00 YTD INVOICED 147,883.00 YTD PAID 8,377.00 111172 MORA, RUBEN
89974 01/01/25 76108 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,612.00 INVOICE: 4943
VENDOR TOTALS 11,284.00 YTD INVOICED 27,799.00 YTD PAID 1,612.00 123963 MORAN, ALEX MILTON
90115 01/01/25 76109 T 01/01/25 82044100 45904 HOUSING VOUCHER 18.00 INVOICE: 10785-U
VENDOR TOTALS 126.00 YTD INVOICED 198.00 YTD PAID 18.00 119610 MUNOZ, ERNESTO
89856 01/01/25 76110 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,384.00 City of Hawthorne, CA

PAID INVOICES REPORT
Report generated: 12/19/2024 09:02
User: sdixon
Program ID: appdwarr

CHECK: H010125 TO FISCAL 2025/07 07/01/2023 TO 06/30/2025

VENDOR NAME

DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION INVOICE: 10102
VENDOR TOTALS 9,702.00 YTD INVOICED 25,880.00 YTD PAID 1,384.00 110239 NAGER, JAY
89975 01/01/25 76111 T 01/01/25 81544100 45904 HOUSING VOUCHER 312.00 INVOICE: 9397
VENDOR TOTALS 2,366.00 YTD INVOICED 7,036.00 YTD PAID 312.00 116979 NATIONAL COMMUNITY RENAISSANCE
89616 05/01/24 76112 T 01/01/25 81544100 45904 HOUSING VOUCHER -1,181.00 INVOICE: 8990-D
89617 06/01/24 76112 T 01/01/25 81544100 45904 HOUSING VOUCHER -1,181.00 INVOICE: 8990-D
89618 07/01/24 76112 T 01/01/25 81544100 45904 HOUSING VOUCHER -1,181.00 INVOICE: 8990-D
89619 08/01/24 76112 T 01/01/25 81544100 45904 HOUSING VOUCHER -1,181.00 INVOICE: 8990-D
89620 09/01/24 76112 T 01/01/25 81544100 45904 HOUSING VOUCHER -1,181.00 INVOICE: 8990-D
89976 01/01/25 76112 T 01/01/25 81544100 45904 HOUSING VOUCHER 688.00 INVOICE: 10259
89977 01/01/25 76112 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,587.00 INVOICE: 10348
89978 01/01/25 76112 T 01/01/25 81544100 45904 HOUSING VOUCHER 432.00 INVOICE: 10668
89979 01/01/25 76112 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,664.00 INVOICE: 4099
89980 01/01/25 76112 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,575.00 INVOICE: 4104
89981 01/01/25 76112 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,470.00 INVOICE: 4247
89982 01/01/25 76112 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,469.00 INVOICE: 8531
89983 01/01/25 76112 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,183.00 INVOICE: 8563
89984 01/01/25 76112 T 01/01/25 81544100 45904 HOUSING VOUCHER 864.00 INVOICE: 8687
89985 01/01/25 76112 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,646.00 INVOICE: 9312
89986 01/01/25 76112 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,259.00 INVOICE: 9327
89987 01/01/25 76112 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,103.00 INVOICE: 9590
89988 01/01/25 76112 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,537.00 INVOICE: 9688
VENDOR TOTALS 120,407.00 YTD INVOICED 341,874.00 YTD PAID 10,572.00 123888 NC DEVELOPMENT GROUP, INC.

City of Hawthorne, CA

PAID INVOICES REPORT
Report generated: 12/19/2024 09:02
User: sdixon
Program ID: appdwarr

CHECK: H010125 TO FISCAL 2025/07 07/01/2023 TO 06/30/2025

VENDOR NAME

DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 90288 01/01/25 76113 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,029.00 INVOICE: 6056
VENDOR TOTALS 6,964.00 YTD INVOICED 10,124.00 YTD PAID 1,029.00 109774 NEVAREZ, JOSE
89900 01/01/25 76114 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,736.00 INVOICE: 9946
VENDOR TOTALS 12,152.00 YTD INVOICED 49,602.00 YTD PAID 1,736.00 121197 NGUYEN, MAI
89951 01/01/25 76115 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,762.00 INVOICE: 10375
VENDOR TOTALS 12,334.00 YTD INVOICED 36,234.00 YTD PAID 1,762.00 120381 NGUYEN, STEVE
90073 01/01/25 76116 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,145.00 INVOICE: 9047
VENDOR TOTALS 8,015.00 YTD INVOICED 21,832.00 YTD PAID 1,145.00 109058 NOUH, JOSEPHINE
89907 01/01/25 76117 T 01/01/25 81544100 45904 HOUSING VOUCHER 210.00 INVOICE: 8484
VENDOR TOTALS 1,608.00 YTD INVOICED 5,054.00 YTD PAID 210.00 106411 NWOKO, JOHN
89896 01/01/25 76118 T 01/01/25 81544100 45904 HOUSING VOUCHER 699.00 INVOICE: 8869
VENDOR TOTALS 4,893.00 YTD INVOICED 12,921.00 YTD PAID 699.00 121322 OKOOBOH, SYLVANUS
89991 01/01/25 76119 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,376.00 INVOICE: 10120
89992 01/01/25 76119 T 01/01/25 81544100 45904 HOUSING VOUCHER 2,363.00 INVOICE: 10809
89993 01/01/25 76119 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,329.00 INVOICE: 9625
VENDOR TOTALS 27,161.00 YTD INVOICED 69,922.00 YTD PAID 5,068.00 122967 OLIVARES, SAL
89936 01/01/25 76120 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,039.00 INVOICE: 4755
89937 01/01/25 76120 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,703.00 INVOICE: 4777
City of Hawthorne, CA

PAID INVOICES REPORT
Report generated: 12/19/2024 09:02
User: sdixon
Program ID: appdwarr

CHECK: H010125 TO FISCAL 2025/07 07/01/2023 TO 06/30/2025

VENDOR NAME

DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION VENDOR TOTALS 19,676.00 YTD INVOICED 50,877.00 YTD PAID 2,742.00 100096 ORANGE COUNTY HOUSING
89632 01/01/25 76121 T 01/01/25 81044010 45944 ADMIN FEES PAID - VOUCHER 100.28 INVOICE: 10171
89633 01/01/25 76121 T 01/01/25 81044010 45944 ADMIN FEES PAID - VOUCHER 100.28 INVOICE: 10392
89634 01/01/25 76121 T 01/01/25 81044010 45944 ADMIN FEES PAID - VOUCHER 100.28 INVOICE: 10551
89635 01/01/25 76121 T 01/01/25 81044010 45944 ADMIN FEES PAID - VOUCHER 100.28 INVOICE: 4656
89994 01/01/25 76121 T 01/01/25 81544100 45904 HOUSING VOUCHER 3,688.00 INVOICE: 10171
89995 01/01/25 76121 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,989.00 INVOICE: 10392
89996 01/01/25 76121 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,551.00 INVOICE: 10551
89997 01/01/25 76121 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,880.00 INVOICE: 4656
VENDOR TOTALS 83,206.80 YTD INVOICED 215,495.40 YTD PAID 9,509.12 124006 PARKER, AAMINAH
90116 01/01/25 76122 T 01/01/25 83440010 45904 HOUSING VOUCHER 62.00 INVOICE: 10717-U
VENDOR TOTALS 2,376.00 YTD INVOICED 2,523.00 YTD PAID 62.00 120180 PARSLEY, LLC.
90319 01/01/25 76123 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,600.00 INVOICE: 10208
90320 01/01/25 76123 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,593.00 INVOICE: 10608
90321 01/01/25 76123 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,314.00 INVOICE: 9496
90322 01/01/25 76123 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,324.00 INVOICE: 9987
VENDOR TOTALS 35,567.00 YTD INVOICED 90,220.00 YTD PAID 5,831.00 123502 PAZZIA, JENNIFER
90146 01/01/25 76124 T 01/01/25 81544100 45904 HOUSING VOUCHER 798.00 INVOICE: 8976
90147 01/01/25 76124 T 01/01/25 81544100 45904 HOUSING VOUCHER 2,513.00 INVOICE: 9258
VENDOR TOTALS 22,789.00 YTD INVOICED 61,028.00 YTD PAID 3,311.00 102871 PETTWAY, VERRIE O.
90096 01/01/25 76125 T 01/01/25 82044100 45904 HOUSING VOUCHER 1,407.00 City of Hawthorne, CA

PAID INVOICES REPORT
Report generated: 12/19/2024 09:02
User: sdixon
Program ID: appdwarr

CHECK: H010125 TO FISCAL 2025/07 07/01/2023 TO 06/30/2025

VENDOR NAME

DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION INVOICE: 10762
90097 01/01/25 76125 T 01/01/25 81544100 45904 HOUSING VOUCHER 2,781.00 INVOICE: 9583
VENDOR TOTALS 30,634.00 YTD INVOICED 87,387.00 YTD PAID 4,188.00 114815 PINNACLE ACACIA LLC
90001 01/01/25 76126 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,633.00 INVOICE: 10074
90002 01/01/25 76126 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,551.00 INVOICE: 5023
90003 01/01/25 76126 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,588.00 INVOICE: 9180
90004 01/01/25 76126 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,646.00 INVOICE: 9915
VENDOR TOTALS 43,780.00 YTD INVOICED 111,037.00 YTD PAID 6,418.00 120583 PINNACLE DOTY LLC.
90005 01/01/25 76127 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,640.00 INVOICE: 10395
90006 01/01/25 76127 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,657.00 INVOICE: 10399
90007 01/01/25 76127 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,611.00 INVOICE: 9926
VENDOR TOTALS 32,084.00 YTD INVOICED 83,335.00 YTD PAID 4,908.00 118916 PINNACLE LEMOLI LLC.
90008 01/01/25 76128 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,538.00 INVOICE: 10367
90009 01/01/25 76128 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,615.00 INVOICE: 10431
90010 01/01/25 76128 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,116.00 INVOICE: 10473
90011 01/01/25 76128 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,540.00 INVOICE: 10476
VENDOR TOTALS 40,357.00 YTD INVOICED 110,145.00 YTD PAID 5,809.00 113548 POWELLS, TAURENCE KEVIN
90282 01/01/25 76129 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,610.00 INVOICE: 3304
VENDOR TOTALS 10,275.00 YTD INVOICED 26,632.00 YTD PAID 1,610.00 120470 POZZOULI FAMILY LLC.
90012 01/01/25 76130 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,065.00 INVOICE: 10238
90013 01/01/25 76130 T 01/01/25 81544100 45904 HOUSING VOUCHER 901.00 INVOICE: 10278
City of Hawthorne, CA

PAID INVOICES REPORT
Report generated: 12/19/2024 09:02
User: sdixon
Program ID: appdwarr

CHECK: H010125 TO FISCAL 2025/07 07/01/2023 TO 06/30/2025

VENDOR NAME

DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 90014 01/01/25 76130 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,076.00 INVOICE: 10303
90015 01/01/25 76130 T 01/01/25 81544100 45904 HOUSING VOUCHER 913.00 INVOICE: 10345
90016 01/01/25 76130 T 01/01/25 83440010 45904 HOUSING VOUCHER 923.00 INVOICE: 10742
90017 01/01/25 76130 T 01/01/25 81544100 45904 HOUSING VOUCHER 970.00 INVOICE: 4952
90018 01/01/25 76130 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,434.00 INVOICE: 6084
90019 01/01/25 76130 T 01/01/25 81544100 45904 HOUSING VOUCHER 864.00 INVOICE: 8878
90020 01/01/25 76130 T 01/01/25 81544100 45904 HOUSING VOUCHER 810.00 INVOICE: 9831
90021 01/01/25 76130 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,757.00 INVOICE: 9996
VENDOR TOTALS 70,971.00 YTD INVOICED 188,612.00 YTD PAID 10,713.00 121650 PRAIRIE RENTALS, LLC
90022 01/01/25 76131 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,600.00 INVOICE: 10398
VENDOR TOTALS 10,600.00 YTD INVOICED 28,300.00 YTD PAID 1,600.00 122042 PROFESSIONAL PROPERTY MANAGERS, INC.
90023 01/01/25 76132 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,366.00 INVOICE: 10176
90024 01/01/25 76132 T 01/01/25 81544100 45904 HOUSING VOUCHER 983.00 INVOICE: 10249
90025 01/01/25 76132 T 01/01/25 81544100 45904 HOUSING VOUCHER 908.00 INVOICE: 10602
90026 01/01/25 76132 T 01/01/25 83440010 45904 HOUSING VOUCHER 1,410.00 INVOICE: 10700
90027 01/01/25 76132 T 01/01/25 84440010 45904 HOUSING VOUCHER 1,703.00 INVOICE: 10705
90028 01/01/25 76132 T 01/01/25 84440010 45904 HOUSING VOUCHER 1,328.00 INVOICE: 10729
90029 01/01/25 76132 T 01/01/25 82044100 45904 HOUSING VOUCHER 1,493.00 INVOICE: 10738
90030 01/01/25 76132 T 01/01/25 84440010 45904 HOUSING VOUCHER 1,795.00 INVOICE: 10751
90031 01/01/25 76132 T 01/01/25 84440010 45904 HOUSING VOUCHER 1,583.00 INVOICE: 10759
90032 01/01/25 76132 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,169.00 INVOICE: 2525
90033 01/01/25 76132 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,195.00 INVOICE: 6018
VENDOR TOTALS 106,372.00 YTD INVOICED 286,846.00 YTD PAID 14,933.00 City of Hawthorne, CA

PAID INVOICES REPORT
Report generated: 12/19/2024 09:02
User: sdixon
Program ID: appdwarr

CHECK: H010125 TO FISCAL 2025/07 07/01/2023 TO 06/30/2025

VENDOR NAME

DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 123313 QUALITY DEVELOPMENT CORP.
89910 01/01/25 76133 T 01/01/25 81544100 45904 HOUSING VOUCHER 941.00 INVOICE: 2719
90221 01/01/25 76133 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,038.00 INVOICE: 8955
VENDOR TOTALS 13,881.00 YTD INVOICED 47,594.00 YTD PAID 1,979.00 109045 QUERUBIN, JAMES & MYLENE
90034 01/01/25 76134 T 01/01/25 81544100 45904 HOUSING VOUCHER 887.00 INVOICE: 5037
VENDOR TOTALS 6,329.00 YTD INVOICED 16,872.00 YTD PAID 887.00 123704 R3 PROPERTIES 1 LLC
90230 01/01/25 76135 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,313.00 INVOICE: 10181
90231 01/01/25 76135 T 01/01/25 82044100 45904 HOUSING VOUCHER 2,222.00 INVOICE: 10215
90240 01/01/25 76135 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,240.00 INVOICE: 10386
90249 01/01/25 76135 T 01/01/25 83440010 45904 HOUSING VOUCHER 1,083.00 INVOICE: 10672
90257 01/01/25 76135 T 01/01/25 83440010 45904 HOUSING VOUCHER 1,398.00 INVOICE: 10703
90262 01/01/25 76135 T 01/01/25 84440010 45904 HOUSING VOUCHER 1,912.00 INVOICE: 10734
90310 01/01/25 76135 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,418.00 INVOICE: 9921
VENDOR TOTALS 64,713.00 YTD INVOICED 118,361.00 YTD PAID 10,586.00 121412 RABNUB, LLC.
90035 01/01/25 76136 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,311.00 INVOICE: 9251
VENDOR TOTALS 8,942.00 YTD INVOICED 21,581.00 YTD PAID 1,311.00 120613 RAEDEKE, MICHAEL JOHN
90263 01/01/25 76137 T 01/01/25 82044100 45904 HOUSING VOUCHER 1,948.00 INVOICE: 10739
90298 01/01/25 76137 T 01/01/25 81544100 45904 HOUSING VOUCHER 839.00 INVOICE: 8855
VENDOR TOTALS 20,949.00 YTD INVOICED 60,837.00 YTD PAID 2,787.00 98951 RAMSUNDAR, KHAIMWATTEE-13604 CHADRON
89941 01/01/25 76138 T 01/01/25 81544100 45904 HOUSING VOUCHER 845.00 INVOICE: 9225
City of Hawthorne, CA

PAID INVOICES REPORT
Report generated: 12/19/2024 09:02
User: sdixon
Program ID: appdwarr

CHECK: H010125 TO FISCAL 2025/07 07/01/2023 TO 06/30/2025

VENDOR NAME

DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION VENDOR TOTALS 10,391.00 YTD INVOICED 29,347.00 YTD PAID 845.00 123212 REAL PROPERTY MANAGEMENT INC.
90324 01/01/25 76139 T 01/01/25 83440010 45904 HOUSING VOUCHER 1,161.00 INVOICE: 10682
VENDOR TOTALS 8,127.00 YTD INVOICED 22,749.00 YTD PAID 1,161.00 114801 REAL, JOHN
89357 08/01/23 76140 T 01/01/25 81544100 45904 HOUSING VOUCHER 345.00 INVOICE: 9939
90220 01/01/25 76140 T 01/01/25 81544100 45904 HOUSING VOUCHER 272.00 INVOICE: 9939
VENDOR TOTALS 2,260.00 YTD INVOICED 6,122.00 YTD PAID 617.00 122281 REASON, EVELYN W.
90036 01/01/25 76141 T 01/01/25 81544100 45904 HOUSING VOUCHER 845.00 INVOICE: 8749
VENDOR TOTALS 5,950.00 YTD INVOICED 16,379.00 YTD PAID 845.00 123731 REED, LANCE
90267 01/01/25 76142 T 01/01/25 81544100 45904 HOUSING VOUCHER 545.00 INVOICE: 10767
VENDOR TOTALS 4,983.00 YTD INVOICED 16,273.00 YTD PAID 545.00 120283 RICKS, PATRICIA
89998 01/01/25 76143 T 01/01/25 81544100 45904 HOUSING VOUCHER 827.00 INVOICE: 10552
89999 01/01/25 76143 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,137.00 INVOICE: 5036
90000 01/01/25 76143 T 01/01/25 81544100 45904 HOUSING VOUCHER 784.00 INVOICE: 9451
VENDOR TOTALS 18,899.00 YTD INVOICED 50,837.00 YTD PAID 2,748.00 120616 RIDGWAY, JR., WILLIAM
90264 01/01/25 76144 T 01/01/25 84440010 45904 HOUSING VOUCHER 1,532.00 INVOICE: 10754
90294 01/01/25 76144 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,596.00 INVOICE: 8700
90309 01/01/25 76144 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,568.00 INVOICE: 9823
VENDOR TOTALS 31,634.00 YTD INVOICED 82,856.00 YTD PAID 4,696.00 121872 RIVAS, JR., JOSE N.
89909 01/01/25 76145 T 01/01/25 81544100 45904 HOUSING VOUCHER 887.00 City of Hawthorne, CA

PAID INVOICES REPORT
Report generated: 12/19/2024 09:02
User: sdixon
Program ID: appdwarr

CHECK: H010125 TO FISCAL 2025/07 07/01/2023 TO 06/30/2025

VENDOR NAME

DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION INVOICE: 10523
VENDOR TOTALS 6,209.00 YTD INVOICED 25,355.00 YTD PAID 887.00 120585 RIVERA, STEFANY
90068 01/01/25 76146 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,118.00 INVOICE: 4834
VENDOR TOTALS 7,826.00 YTD INVOICED 19,878.00 YTD PAID 1,118.00 119641 RIVERA, YOLY
90038 01/01/25 76147 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,309.00 INVOICE: 10478
VENDOR TOTALS 9,163.00 YTD INVOICED 21,851.00 YTD PAID 1,309.00 121526 ROSALES PROPERTY INVESTMENTS INC.
90041 01/01/25 76148 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,164.00 INVOICE: 8695
VENDOR TOTALS 8,903.00 YTD INVOICED 17,862.00 YTD PAID 1,164.00 104881 ROSENBERG, BARBARA
90260 01/01/25 76149 T 01/01/25 83440010 45904 HOUSING VOUCHER 1,550.00 INVOICE: 10717
VENDOR TOTALS 10,850.00 YTD INVOICED 29,450.00 YTD PAID 1,550.00 122999 ROSS MOORE REALTY INC
90329 01/01/25 76150 T 01/01/25 83440010 45904 HOUSING VOUCHER 1,372.00 INVOICE: 10708
VENDOR TOTALS 9,604.00 YTD INVOICED 27,184.00 YTD PAID 1,372.00 123211 ROULETTE, GAIL R.
90201 01/01/25 76151 T 01/01/25 81544100 45904 HOUSING VOUCHER 749.00 INVOICE: 4265
VENDOR TOTALS 5,606.00 YTD INVOICED 18,738.00 YTD PAID 749.00 121988 ROUSSEVE, DARVI
90042 01/01/25 76152 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,712.00 INVOICE: 8691
VENDOR TOTALS 11,825.00 YTD INVOICED 26,259.00 YTD PAID 1,712.00 123578 RT 2, LLC
90234 01/01/25 76153 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,661.00 INVOICE: 10273
City of Hawthorne, CA

PAID INVOICES REPORT
Report generated: 12/19/2024 09:02
User: sdixon
Program ID: appdwarr

CHECK: H010125 TO FISCAL 2025/07 07/01/2023 TO 06/30/2025

VENDOR NAME

DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION VENDOR TOTALS 10,865.00 YTD INVOICED 27,404.00 YTD PAID 1,661.00 123903 SAINT DANIEL BUILDING LLC.
90287 01/01/25 76154 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,092.00 INVOICE: 4798
VENDOR TOTALS 7,459.00 YTD INVOICED 11,087.00 YTD PAID 1,092.00 123904 SAINT DAVID BUILDING LLC.
90299 01/01/25 76155 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,661.00 INVOICE: 8980
VENDOR TOTALS 10,895.00 YTD INVOICED 16,563.00 YTD PAID 1,661.00 119012 SAINT MARK PROPERTY LLC.
90047 01/01/25 76156 T 01/01/25 81544100 45904 HOUSING VOUCHER 986.00 INVOICE: 8265
VENDOR TOTALS 6,902.00 YTD INVOICED 18,079.00 YTD PAID 986.00 109912 SALMERON, FAUSTINO & ARACELY
90048 01/01/25 76157 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,986.00 INVOICE: 9666
VENDOR TOTALS 13,342.00 YTD INVOICED 16,204.00 YTD PAID 1,986.00 102029 SAMIA, IMELDA
89935 01/01/25 76158 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,092.00 INVOICE: 4133
VENDOR TOTALS 7,659.00 YTD INVOICED 20,832.00 YTD PAID 1,092.00 115679 SAMMUT, TOM
90086 01/01/25 76159 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,013.00 INVOICE: 9436
VENDOR TOTALS 6,986.00 YTD INVOICED 18,135.00 YTD PAID 1,013.00 117370 SANCHEZ, MANUEL
89954 01/01/25 76160 T 01/01/25 81544100 45904 HOUSING VOUCHER 766.00 INVOICE: 10379
VENDOR TOTALS 5,362.00 YTD INVOICED 21,535.00 YTD PAID 766.00 111243 SANFORD, TERESA
90243 01/01/25 76161 T 01/01/25 81544100 45904 HOUSING VOUCHER 2,868.00 INVOICE: 10557
90289 01/01/25 76161 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,235.00 INVOICE: 8017
City of Hawthorne, CA

PAID INVOICES REPORT
Report generated: 12/19/2024 09:02
User: sdixon
Program ID: appdwarr

CHECK: H010125 TO FISCAL 2025/07 07/01/2023 TO 06/30/2025

VENDOR NAME

DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION VENDOR TOTALS 33,173.00 YTD INVOICED 95,299.00 YTD PAID 4,103.00 121206 SCOTT, FRED
90051 01/01/25 76162 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,486.00 INVOICE: 10258
90052 01/01/25 76162 T 01/01/25 81544100 45904 HOUSING VOUCHER 791.00 INVOICE: 10770
90053 01/01/25 76162 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,207.00 INVOICE: 9998
VENDOR TOTALS 24,373.00 YTD INVOICED 63,070.00 YTD PAID 3,484.00 106104 SCOTT, FRED A. & EMMA L.
90054 01/01/25 76163 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,166.00 INVOICE: 8030
VENDOR TOTALS 8,162.00 YTD INVOICED 22,420.00 YTD PAID 1,166.00 122385 SCROGGINS, FRANK
90055 01/01/25 76164 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,623.00 INVOICE: 10546
VENDOR TOTALS 10,642.00 YTD INVOICED 27,833.00 YTD PAID 1,623.00 120252 SF KINGS TOWER PROPERTIES LLC.
90056 01/01/25 76165 T 01/01/25 82044100 45904 HOUSING VOUCHER 2,559.00 INVOICE: 10763
90057 01/01/25 76165 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,090.00 INVOICE: 7088
90058 01/01/25 76165 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,325.00 INVOICE: 9453
VENDOR TOTALS 34,442.00 YTD INVOICED 86,452.00 YTD PAID 4,974.00 109678 SHEPHERD, DEREK
89949 01/01/25 76166 T 01/01/25 82044100 45904 HOUSING VOUCHER 2,289.00 INVOICE: 10624
VENDOR TOTALS 14,329.00 YTD INVOICED 34,377.00 YTD PAID 2,289.00 121972 SHORE WEST PROPERTIES, LLC.
90059 01/01/25 76167 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,042.00 INVOICE: 10421
90060 01/01/25 76167 T 01/01/25 81544100 45904 HOUSING VOUCHER 730.00 INVOICE: 8721
90061 01/01/25 76167 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,920.00 INVOICE: 9080
VENDOR TOTALS 25,408.00 YTD INVOICED 66,896.00 YTD PAID 3,692.00 City of Hawthorne, CA

PAID INVOICES REPORT
Report generated: 12/19/2024 09:02
User: sdixon
Program ID: appdwarr

CHECK: H010125 TO FISCAL 2025/07 07/01/2023 TO 06/30/2025

VENDOR NAME

DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 119834 SHORTER, JEFFREY A.
90062 01/01/25 76168 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,533.00 INVOICE: 4596
VENDOR TOTALS 10,731.00 YTD INVOICED 28,083.00 YTD PAID 1,533.00 117711 SIMERAL, STEVE
90063 01/01/25 76169 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,438.00 INVOICE: 10657
90064 01/01/25 76169 T 01/01/25 81544100 45904 HOUSING VOUCHER 2,049.00 INVOICE: 9533
VENDOR TOTALS 21,713.00 YTD INVOICED 56,101.00 YTD PAID 3,487.00 106124 SINGLETON, JANET N
90065 01/01/25 76170 T 01/01/25 81544100 45904 HOUSING VOUCHER 880.00 INVOICE: 10439
VENDOR TOTALS 5,828.00 YTD INVOICED 15,560.00 YTD PAID 880.00 111337 SMITH, VIOLA M.
90331 01/01/25 76171 T 01/01/25 84440010 45904 HOUSING VOUCHER 1,360.00 INVOICE: 10721
VENDOR TOTALS 9,475.00 YTD INVOICED 24,853.00 YTD PAID 1,360.00 104618 SOTO, RUTH
90046 01/01/25 76172 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,661.00 INVOICE: 8978
VENDOR TOTALS 10,850.00 YTD INVOICED 27,630.00 YTD PAID 1,661.00 93156 SOUTH BAY SENIOR HOUSING CORP.
90066 01/01/25 76173 T 01/01/25 81544100 45904 HOUSING VOUCHER 815.00 INVOICE: 10445
VENDOR TOTALS 5,755.00 YTD INVOICED 15,825.00 YTD PAID 815.00 122922 SPACE ODYSSEY, LLC.
90067 01/01/25 76174 T 01/01/25 81544100 45904 HOUSING VOUCHER 2,095.00 INVOICE: 10676
VENDOR TOTALS 10,513.00 YTD INVOICED 22,217.00 YTD PAID 2,095.00 123779 STANDIFER SR, DELBERT
90278 01/01/25 76175 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,669.00 INVOICE: 10814
VENDOR TOTALS 16,095.00 YTD INVOICED 27,183.00 YTD PAID 1,669.00 103194 STEPHENSON, RUDDIE L.

City of Hawthorne, CA

PAID INVOICES REPORT
Report generated: 12/19/2024 09:02
User: sdixon
Program ID: appdwarr

CHECK: H010125 TO FISCAL 2025/07 07/01/2023 TO 06/30/2025

VENDOR NAME

DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 90069 01/01/25 76176 T 01/01/25 81544100 45904 HOUSING VOUCHER 896.00 INVOICE: 10359
90070 01/01/25 76176 T 01/01/25 81544100 45904 HOUSING VOUCHER 363.00 INVOICE: 3480
90071 01/01/25 76176 T 01/01/25 81544100 45904 HOUSING VOUCHER 846.00 INVOICE: 9282
VENDOR TOTALS 14,789.00 YTD INVOICED 52,792.00 YTD PAID 2,105.00 116817 SUKARTO, NANY
90074 01/01/25 76177 T 01/01/25 81544100 45904 HOUSING VOUCHER 2,222.00 INVOICE: 4792
90075 01/01/25 76177 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,454.00 INVOICE: 8867
90076 01/01/25 76177 T 01/01/25 81544100 45904 HOUSING VOUCHER 2,168.00 INVOICE: 8939
VENDOR TOTALS 39,500.00 YTD INVOICED 115,172.00 YTD PAID 5,844.00 123758 TAYLOR, CLAUDETTE L.
90266 01/01/25 76178 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,617.00 INVOICE: 10766
VENDOR TOTALS 10,992.00 YTD INVOICED 24,029.00 YTD PAID 1,617.00 119666 THE MONTECITO APTS. INVESTMENT, LP
90079 01/01/25 76179 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,429.00 INVOICE: 4754
90080 01/01/25 76179 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,547.00 INVOICE: 5024
90081 01/01/25 76179 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,197.00 INVOICE: 5048
VENDOR TOTALS 29,073.00 YTD INVOICED 76,454.00 YTD PAID 4,173.00 119883 TARLOW, MARVIN
90082 01/01/25 76180 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,114.00 INVOICE: 10099
VENDOR TOTALS 7,738.00 YTD INVOICED 20,753.00 YTD PAID 1,114.00 122416 THREE RAINBOWS LLC.
90083 01/01/25 76181 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,769.00 INVOICE: 10547
90084 01/01/25 76181 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,473.00 INVOICE: 9038
VENDOR TOTALS 22,408.00 YTD INVOICED 59,948.00 YTD PAID 3,242.00 122711 TOMI LYNN KATZ FAMILY TRUST
90087 01/01/25 76182 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,238.00 City of Hawthorne, CA

PAID INVOICES REPORT
Report generated: 12/19/2024 09:02
User: sdixon
Program ID: appdwarr

CHECK: H010125 TO FISCAL 2025/07 07/01/2023 TO 06/30/2025

VENDOR NAME

DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION INVOICE: 10512
90088 01/01/25 76182 T 01/01/25 82044100 45904 HOUSING VOUCHER 2,684.00 INVOICE: 10664
VENDOR TOTALS 26,968.00 YTD INVOICED 69,661.00 YTD PAID 3,922.00 115015 TOWNSEND, LATANYA
90089 01/01/25 76183 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,278.00 INVOICE: 10079
90090 01/01/25 76183 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,538.00 INVOICE: 9332
VENDOR TOTALS 19,985.00 YTD INVOICED 48,954.00 YTD PAID 2,816.00 119386 TRAN, TRINH
90091 01/01/25 76184 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,133.00 INVOICE: 10368
90092 01/01/25 76184 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,308.00 INVOICE: 8934
VENDOR TOTALS 17,087.00 YTD INVOICED 42,582.00 YTD PAID 2,441.00 109127 TRUJILLO, DANIEL
89830 01/01/25 76185 T 01/01/25 81544100 45904 HOUSING VOUCHER 527.00 INVOICE: 8460
VENDOR TOTALS 3,515.00 YTD INVOICED 8,202.00 YTD PAID 527.00 123667 TRUONG, NICOLE
90302 01/01/25 76186 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,719.00 INVOICE: 9338
VENDOR TOTALS 12,033.00 YTD INVOICED 27,169.00 YTD PAID 1,719.00 103619 TUCKER, LENVILLE H.
90093 01/01/25 76187 T 01/01/25 82044100 45904 HOUSING VOUCHER 2,253.00 INVOICE: 10536
90094 01/01/25 76187 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,579.00 INVOICE: 7040
VENDOR TOTALS 23,806.00 YTD INVOICED 62,947.00 YTD PAID 3,832.00 107689 UMUKORO, JAMES
90333 01/01/25 76188 T 01/01/25 82044100 45904 HOUSING VOUCHER 871.00 INVOICE: 10450
90334 01/01/25 76188 T 01/01/25 82044100 45904 HOUSING VOUCHER 2,274.00 INVOICE: 10590
90335 01/01/25 76188 T 01/01/25 82044100 45904 HOUSING VOUCHER 1,680.00 INVOICE: 10768
90336 01/01/25 76188 T 01/01/25 82044100 45904 HOUSING VOUCHER 1,984.00 INVOICE: 10800
City of Hawthorne, CA

PAID INVOICES REPORT
Report generated: 12/19/2024 09:02
User: sdixon
Program ID: appdwarr

CHECK: H010125 TO FISCAL 2025/07 07/01/2023 TO 06/30/2025

VENDOR NAME

DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 90337 01/01/25 76188 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,678.00 INVOICE: 10810
90338 01/01/25 76188 T 01/01/25 81544100 45904 HOUSING VOUCHER 2,139.00 INVOICE: 10821
90339 01/01/25 76188 T 01/01/25 81544100 45904 HOUSING VOUCHER 563.00 INVOICE: 9289
VENDOR TOTALS 74,458.00 YTD INVOICED 225,101.00 YTD PAID 11,189.00 123449 VELASQUEZ, ROBERTO
90281 01/01/25 76189 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,663.00 INVOICE: 3157
VENDOR TOTALS 10,921.00 YTD INVOICED 26,993.00 YTD PAID 1,663.00 123143 VIDJAK, FRANK V.
90296 01/01/25 76190 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,124.00 INVOICE: 8812
VENDOR TOTALS 7,868.00 YTD INVOICED 20,761.00 YTD PAID 1,124.00 116891 VISCOT VENTURES, LLC
89615 11/01/24 76191 T 01/01/25 81544100 45904 HOUSING VOUCHER 183.00 INVOICE: 9681-1
90340 01/01/25 76191 T 01/01/25 83440010 45904 HOUSING VOUCHER 727.00 INVOICE: 10687
90341 01/01/25 76191 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,116.00 INVOICE: 9681
VENDOR TOTALS 12,169.00 YTD INVOICED 34,105.00 YTD PAID 2,026.00 123979 WALKER, JENNIFER LEIGH
90117 01/01/25 76192 T 01/01/25 81544100 45904 HOUSING VOUCHER 189.00 INVOICE: 10756-U
VENDOR TOTALS 1,323.00 YTD INVOICED 1,707.00 YTD PAID 189.00 110341 WALTER, MELVIN E.
90098 01/01/25 76193 T 01/01/25 81544100 45904 HOUSING VOUCHER 2,439.00 INVOICE: 10233
90099 01/01/25 76193 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,547.00 INVOICE: 10400
VENDOR TOTALS 28,019.00 YTD INVOICED 51,241.00 YTD PAID 3,986.00 107712 WARD, JULIUS
89931 01/01/25 76194 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,545.00 INVOICE: 10771
89932 01/01/25 76194 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,328.00 INVOICE: 10772
City of Hawthorne, CA

PAID INVOICES REPORT
Report generated: 12/19/2024 09:02
User: sdixon
Program ID: appdwarr

CHECK: H010125 TO FISCAL 2025/07 07/01/2023 TO 06/30/2025

VENDOR NAME

DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION VENDOR TOTALS 19,087.00 YTD INVOICED 41,857.00 YTD PAID 2,873.00 100596 WATSON, HUBERT
90100 01/01/25 76195 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,253.00 INVOICE: 10352
90101 01/01/25 76195 T 01/01/25 81544100 45904 HOUSING VOUCHER 714.00 INVOICE: 10462
90102 01/01/25 76195 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,200.00 INVOICE: 10609
90103 01/01/25 76195 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,343.00 INVOICE: 10648
90104 01/01/25 76195 T 01/01/25 83440010 45904 HOUSING VOUCHER 881.00 INVOICE: 10728
90105 01/01/25 76195 T 01/01/25 83440010 45904 HOUSING VOUCHER 1,714.00 INVOICE: 10735
90106 01/01/25 76195 T 01/01/25 84440010 45904 HOUSING VOUCHER 1,761.00 INVOICE: 10757
90107 01/01/25 76195 T 01/01/25 82044100 45904 HOUSING VOUCHER 1,998.00 INVOICE: 10761
90108 01/01/25 76195 T 01/01/25 82044100 45904 HOUSING VOUCHER 1,407.00 INVOICE: 9106
VENDOR TOTALS 84,717.00 YTD INVOICED 239,684.00 YTD PAID 12,271.00 122062 WEAVER, KAREN
90109 01/01/25 76196 T 01/01/25 82044100 45904 HOUSING VOUCHER 2,224.00 INVOICE: 10488
VENDOR TOTALS 14,934.00 YTD INVOICED 37,568.00 YTD PAID 2,224.00 104447 WHISTLER, YUOVENE
90344 01/01/25 76197 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,293.00 INVOICE: 4728
VENDOR TOTALS 9,051.00 YTD INVOICED 24,747.00 YTD PAID 1,293.00 121311 WHITE, FREDDIE
90110 01/01/25 76198 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,024.00 INVOICE: 5094
VENDOR TOTALS 7,168.00 YTD INVOICED 18,169.00 YTD PAID 1,024.00 107451 WIJESIRIWARDENA, LASANTHA
89924 01/01/25 76199 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,220.00 INVOICE: 8899
VENDOR TOTALS 8,116.00 YTD INVOICED 21,616.00 YTD PAID 1,220.00 121801 WILLIAMS, MARSHALL
89958 01/01/25 76200 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,380.00 City of Hawthorne, CA

PAID INVOICES REPORT
Report generated: 12/19/2024 09:02
User: sdixon
Program ID: appdwarr

CHECK: H010125 TO FISCAL 2025/07 07/01/2023 TO 06/30/2025

VENDOR NAME

DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION INVOICE: 9067
VENDOR TOTALS 9,660.00 YTD INVOICED 26,080.00 YTD PAID 1,380.00 111459 WILSON, TERI
90342 01/01/25 76201 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,468.00 INVOICE: 10475
90343 01/01/25 76201 T 01/01/25 84440010 45904 HOUSING VOUCHER 1,410.00 INVOICE: 10712
VENDOR TOTALS 19,495.00 YTD INVOICED 51,206.00 YTD PAID 2,878.00 108377 WRIGHT, PAMELA D.
90111 01/01/25 76202 T 01/01/25 84440010 45904 HOUSING VOUCHER 1,261.00 INVOICE: 10746
90112 01/01/25 76202 T 01/01/25 81544100 45904 HOUSING VOUCHER 926.00 INVOICE: 8234
VENDOR TOTALS 15,309.00 YTD INVOICED 40,958.00 YTD PAID 2,187.00 110909 WYNNE, MARJORIE
89955 01/01/25 76203 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,861.00 INVOICE: 8332
VENDOR TOTALS 13,027.00 YTD INVOICED 34,770.00 YTD PAID 1,861.00 124279 11651 - 11652 YORK AVENUE, LLC.
89934 01/01/25 76204 T 01/01/25 81544100 45904 HOUSING VOUCHER 856.00 INVOICE: 10822
VENDOR TOTALS 2,397.00 YTD INVOICED 2,397.00 YTD PAID 856.00 123707 YORK ROSE LLC
90292 01/01/25 76205 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,798.00 INVOICE: 8422
VENDOR TOTALS 12,586.00 YTD INVOICED 25,355.00 YTD PAID 1,798.00 91877 ZAPF (12318 BIRCH AVE), RODNEY
90039 01/01/25 76206 T 01/01/25 81544100 45904 HOUSING VOUCHER 1,408.00 INVOICE: 10656
VENDOR TOTALS 9,856.00 YTD INVOICED 31,873.00 YTD PAID 1,408.00 115662 ZAPF (12726 TRURO), ROD
90040 01/01/25 76207 T 01/01/25 81544100 45904 HOUSING VOUCHER 993.00 INVOICE: 9963
VENDOR TOTALS 6,951.00 YTD INVOICED 19,916.00 YTD PAID 993.00 REPORT TOTALS 945,624.60
City of Hawthorne, CA

PAID INVOICES REPORT
Report generated: 12/19/2024 09:02
User: sdixon
Program ID: appdwarr

CHECK: H010125 TO FISCAL 2025/07 07/01/2023 TO 06/30/2025

VENDOR NAME

DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION

COUNT AMOUNT
TOTAL EFT TRANSFERS 318 945,624.60
** END OF REPORT - Generated by Shuntell Dixon **
City of Hawthorne, CA

PAID INVOICES REPORT
Report generated: 01/16/2025 14:51
User: sdixon
Program ID: appdwarr

CHECK: H012825 TO FISCAL 2025/07 07/01/2023 TO 06/30/2025

VENDOR NAME

DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 112237 T-MOBILE
91056 12/22/24 76208 P 01/28/25 81044010 43054 TELEPHONE 260.46 INVOICE: DC982816099
VENDOR TOTALS 92,181.03 YTD INVOICED 235,299.31 YTD PAID 260.46 113605 VERIZON WIRELESS
91120 12/23/24 76209 P 01/28/25 81044010 43054 TELEPHONE 89.13 INVOICE: DC470985090-4
VENDOR TOTALS 32,445.65 YTD INVOICED 82,233.29 YTD PAID 89.13 REPORT TOTALS 349.59

COUNT AMOUNT
TOTAL PRINTED CHECKS 2 349.59
** END OF REPORT - Generated by Shuntell Dixon **
ORIGINATING DEPARTMENT: FINANCE
The City Treasurer submits the following Asset Forfeiture Warrants for your approval:

Date Start Ending Warrant type Total $
12/24/24 11009 11011 ASSET FORFEITURE 5,511.25
1/28/25 11012 11016 ASSET FORFEITURE 26,632.83
* Emergency Issue - for ratification only 32,144.08
State of California, County of Los Angeles SS:

The foregoing claims/demands/warrants have been filed with me; each one bearing an endorsement of the officer or employee of the department, requiring same, that the price is correct.

City Treasurer
City Clerk

CITY OF HAWTHORNE
FOR THE MEETING OF JANUARY 28, 2025
Warrant #s
City of Hawthorne, CA

PAID INVOICES REPORT
Report generated: 12/18/2024 12:42
User: sdixon
Program ID: appdwarr

CHECK: AF122424 TO FISCAL 2025/06 07/01/2023 TO 06/30/2025

VENDOR NAME

DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 117149 ADVANCED AIR, LLC.
89335 12/05/24 20 11009 T 12/24/24 23002244 45144 GASOLINE & OIL 3,295.79 INVOICE: November 2024
VENDOR TOTALS 9,488.44 YTD INVOICED 21,325.54 YTD PAID 3,295.79 124016 EGM FLYING SERVICES
89009 12/01/24 11010 T 12/24/24 23021020 41514 OPERATING SUPPLIES 1,365.00 INVOICE: 008
VENDOR TOTALS 7,280.00 YTD INVOICED 12,775.00 YTD PAID 1,365.00 123386 THE VITALITY GROUP, INC.
89336 12/09/24 11011 T 12/24/24 23021020 41514 OPERATING SUPPLIES 850.46 INVOICE: 90044345
VENDOR TOTALS 8,113.74 YTD INVOICED 24,665.30 YTD PAID 850.46 REPORT TOTALS 5,511.25

COUNT AMOUNT
TOTAL EFT TRANSFERS 3 5,511.25
** END OF REPORT - Generated by Shuntell Dixon **
City of Hawthorne, CA

PAID INVOICES REPORT
Report generated: 01/16/2025 14:42
User: sdixon
Program ID: appdwarr

CHECK: AF012825 TO FISCAL 2025/07 07/01/2023 TO 06/30/2025

VENDOR NAME

DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 117149 ADVANCED AIR, LLC.
91152 01/13/25 20 11012 T 01/28/25 23002244 45144 GASOLINE & OIL 2,442.49 INVOICE: December 2024
VENDOR TOTALS 11,930.93 YTD INVOICED 23,768.03 YTD PAID 2,442.49 124016 EGM FLYING SERVICES
91000 01/01/25 11013 T 01/28/25 23021020 41514 OPERATING SUPPLIES 2,695.00 INVOICE: 009
VENDOR TOTALS 9,975.00 YTD INVOICED 15,470.00 YTD PAID 2,695.00 123553 INTERVIEW NOW, INC.
90998 06/21/24 2593 11014 T 01/28/25 23021020 40514 CONTRACT SERVICES 5,250.00 INVOICE: 2064
VENDOR TOTALS 5,250.00 YTD INVOICED 5,250.00 YTD PAID 5,250.00 123899 M & S AIR SUPPLY, INC.
90999 12/30/24 2594 11015 T 01/28/25 23002244 42014 REPAIR & MAINTENANCE SUPP 12,606.97 INVOICE: 19297
VENDOR TOTALS 15,623.66 YTD INVOICED 20,259.89 YTD PAID 12,606.97 123386 THE VITALITY GROUP, INC.
91153 01/13/25 11016 T 01/28/25 23021020 41514 OPERATING SUPPLIES 3,638.37 INVOICE: 90044864
VENDOR TOTALS 11,752.11 YTD INVOICED 28,303.67 YTD PAID 3,638.37 REPORT TOTALS 26,632.83

COUNT AMOUNT
TOTAL EFT TRANSFERS 5 26,632.83
** END OF REPORT - Generated by Shuntell Dixon **
AGENDA ITEM NO. 5.

CITY OF HAWTHORNE
City Council

AGENDA BILL
For the meeting of 01/28/2025
Originating Department: Planning
City Manager: Department Head:

SUBJECT:

RESOLUTION NO. 8507

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HAWTHORNE, CALIFORNIA, UPHOLDING THE

PLANNING COMMISSION APPROVAL OF A CONDITIONAL USE PERMIT TO OPERATE A DRIVE-THRU AT 13324 S. INGLEWOOD AVENUE, SUBJECT TO CONDITIONS AND MAKING FINDINGS IN SUPPORT

THEREOF
RECOMMENDED MOTION:

Staff recommends that the City Council approve Resolution No. 8507.

DISCUSSION:

The Planning Commission approved Resolution No. PC 2024-19 for a drive-thru at 13324 S. Inglewood Avenue on November 20, 2024. The approval was called for review by Council Member Reyes English and a duly noticed public hearing on the call for review was held on December 10, 2024. After testimony of all interested parties was given, the City Council voted to uphold the Planning Commission decision with modifications to the conditions of approval and directed staff to prepare this resolution.

Several modified conditions relate to improvements in the public right-of-way (signal lights at the proposed crosswalk on Inglewood Avenue, left turn lane for southbound Inglewood Avenue, and oneway streets north and south of the project site; and reduced hours of operation for the drive-thru.

The Public Works Department received a grant to redesign and rebuild Inglewood Avenue in the near future, and without knowing the specifics of the redesigned street, staff recommends the applicant provide a bond to cover the costs associated with right-of-improvements immediately adjacent to the subject property rather than pay for improvements that may not be included in the final redesign. The Police Department requested that the drive-thru be allowed to operate 24 hours per day as a nuisance deterrent. However, if within the first six months of operations, the Chief of Police determines that the drive-thru being open 24 hours is actually causing a public nuisance, the drive-thru must remain closed from 12:00 am until 5:00 am daily.

ECONOMIC DEVELOPMENT STRATEGIC PLAN:

N/A
FISCAL IMPACT:

None
NOTICING PROCEDURE:

The public hearing of December 10, 2024, was properly noticed. No notice is required to adopt this resolution.

ATTACHMENTS
Planning Commission Resolution PC 2024-19
Resolution 8507
PLANNING COMMISSION RESOLUTION NO. PC 2024-19
CONDITIONAL USE PERMIT CU-2024-0007

A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF HAWTHORNE,

CALIFORNIA, ADOPTING A NOTICE OF EXEMPTION IN ACCORDANCE WITH THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) AND APPROVING CONDITIONAL USE PERMIT CU-2024-0007 FOR A DRIVE-THRU RESTAURANT AT 13324 S. INGLEWOOD AVE., IN THE CITY OF HAWTHORNE, SUBJECT TO

CONDITIONS AND MAKING FINDINGS IN SUPPORT THEREOF
WHEREAS, Scott Wilkeson (Applicant), filed a complete application requesting the approval of a Conditional Use Permit (CUP} for a drive-thru restaurant in accordance with Hawthorne Municipal Code (HMC} Chapter 17.26; and
WHEREAS, the Application applies to a property located at 13324 S. Inglewood Ave., Hawthorne, California, Assessor's Parcel Numbers 4042-011-026 and 4042-011-024 ("Property"}; and WHEREAS, the Land Use Element of the General Plan designates the Property as General Commercial and the zoning as General Commercial (C-3}; and WHEREAS, in accordance with the HMC Chapters 17.26 and 17.28 a drive-thru restaurant requires the granting of a conditional use permit by the Planning Commission; and WHEREAS, the project is categorically exempt from review pursuant to State CEQA Guidelines Section 15332, Class 32, for Infill Development Projects; and WHEREAS, on November 20, 2024, a duly noticed public hearing on the project was held before the Planning Commission where all interested parties were given an opportunity to be heard; and WHEREAS, evidence was heard and presented from all persons in favor of the application, from all persons opposed to the application and from members of the City staff; and that the Planning Commission having heard and received all of said evidence, testimony, and statements and being fully informed of the application.

THE PLANNING COMMISSION OF THE CITY OF HAWTHORNE DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS:

SECTION 1. The Planning Commission finds that all of the facts set forth in the Recitals are true and correct, and are incorporated herein by reference.

SECTION 2. Based upon independent review and consideration of the written and oral comments of interested parties thereon, the responses thereto by City staff, the Conditions of Approval (Exhibit A} as well as the entire record of its proceedings, and having exercised its independent judgement thereon, the Planning Commission hereby finds that the Project is exempt from the California Environmental Quality Act pursuant to CEQA State Guidelines Section 15332, Class 32 which exempts projects consistent with both the general plan and zoning designations and regulations. The proposed Planning Commission Resolution 2024-19 1
use would occur within city limits on a site significantly less than five acres and surrounded by urban uses. Additionally, the subject site is not home to endangered species and will therefore not jeopardize the habitat of rare or threatened species. The proposal also complies with Class 32 exemptions due to the site's location in an area already served by utility and public service providers.

SECTION 3. Based upon substantial evidence presented to the Planning Commission during the November 20, 2024, public meeting, including public testimony and written and oral staff reports, the Planning Commission finds as follows:

1. The proposed use is properly one for which a CUP is authorized by this code, as follows:

As discussed above, the project site is located in the C-3 zone. HMC Section 17.28.020 permits uses in the C-3 zone that are permitted in the C-2 zone and subject to the same regulations as in the C-2 zone. As such, a conditional use permit is a proper use.

2. The proposed use will not adversely affect the adjoining land uses, or the growth and development of the area in which it is proposed to be located, as follows:

The project location in the General Commercial zone is intended for commercial activity and development, including restaurants. Through careful design and subsequent design review, the drive-thru will be oriented in a way to minimize interference with the adjoining commercial and residential land uses.

3. That the size and shape of the site proposed for the use is adequate to allow the full development of the proposed use, in a manner not detrimental to either the particular area or health and safety.

The proposed structure is 3, 781 sq. ft. which covers 10% of the existing 37,500 square foot lot. The site can easily accommodate the new building and proposed parking. The portion of the site dedicated to the drive-thru is adequate to accommodate a queue of vehicles. Additionally, the drive-thru entrance is proposed to be 24 ft. wide, accommodating two lanes and two ordering stations. This style of drive-thru design provides additional queuing space.

4. That the traffic generated by the proposed use will not impose an undue burden upon the streets and highways designed and improved to carry the traffic in the area.

The purpose of a drive-thru is to collect cars in an orderly queue to receive service.

The proposed queue demonstrates ample space to accommodate vehicles and minimize overflow into the establishment's parking lot and adjacent streets. The drivethru will be accessible via curb cuts on two streets, Inglewood Ave. and 134th Street.

The drive-thru will have signage and directional arrows guiding traffic in one direction.

The Applicant and the City will take an additional precaution to reduce the burden of traffic at the intersection of Inglewood Avenue and 133rd Street. A curb cut on the Planning Commission Resolution 2024-19 2
property along 133rd Street will serve as an exit only, directing vehicles toward Inglewood Avenue. This will mitigate the potential for vehicle stacking on 133rd St.

5. That the granting of the conditional use permit under the conditions imposed will not be detrimental to the health and safety of the citizens of the City of Hawthorne.

Provisions of the HMC permit drive-thru restaurants with the approval of a CUP. The findings above demonstrate the project's conformity to the surrounding land uses and regulations of the Zoning Code. Additionally, the conditions of approval enumerated in Exhibit A, subject the project to review by agencies such as Fire, Police, and others regulating public safety.

SECTION 4. Based on the forgoing, the Planning Commission hereby grants Conditional Use Permit CU-2024-0007 subject to the conditions set forth in Exhibit A attached hereto.

SECTION 5. This resolution shall become effective 10 days after its adoption, unless within that period of time it is appealed to the City Council. In the event of an appeal, this resolution shall not become effective unless reinstated by the City Council after the hearing on the appeal. The City Council resolution determining the appeal shall be controlling, and unless the matter is remanded to the Planning Commission, the resolution of the City Council shall be final.

SECTION 6. A copy of this resolution shall be mailed to the applicant and copies shall be filed with the City.

PASSED, APPROVED and ADOPTED this 20th day of November 2024.

ATTEST: R
~ Q ____
GREGG McCLAIN, SECRETARY
Planning Commission Resolution 2024-19 3
Application:

Applicant:

Owner:

Authorized Agent:

Location:

EXHIBIT A

CONDITIONS OF APPROVAL
CONDITIONAL USE PERMIT CU-2024-0007
CU-2024-0007

SCOTT WILKESON, MCDONALD'S USA, LLC
11383 PLAYA STREET LLC C/O PERRY G. DE LUNA

ROBERT PREECE
13324 S. INGLEWOOD AVE. & 13324 W. 133rd ST.

CONDITIONS OF APPROVAL
Conditions of approval are unique provisions, beyond the requirements of law, the municipal code, or standard practices that are applied to a project per Section 17.40.050 of the Zoning Code. Please note that if the design of your project or site conditions change, the conditions of approval may also change. If you have any questions regarding these requirements, please contact the City of Hawthorne.

1. The applicant shall comply with all applicable requirements and provisions set forth by the Uniform Building Code, Uniform Fire Code, Hawthorne Municipal Code (HMC), and any additional requirements by the Fire Department, Director of Building and Safety, or Director of Planning, as related to this application.

2. The property shall be developed substantially in conformance with the floor plans received, and approved by the Planning Commission and as conditioned by the requirements contained in this resolution of approval. Any deviation from said plans shall first be reviewed by the Planning Department to determine whether proposed modifications are within the scope of approval.

3. The applicant and subsequent property owners/tenants must conform to all Business License regulations and maintain a current city license at all times.

4. All signage on the property shall comply with Chapter 17.35 of the HMC.

5. Signs shall be posted on the site per CA Penal Code Sections 552 through 555.5 and 11532 to prohibit loitering on the property.

6. The number of persons shall not exceed the maximum occupancy load as determined by the Fire Department. Signs indicating the occupant load shall be posted in a conspicuous place on the approved sign near the main exit from the building.

7. Graffiti shall be removed within 24 hours of its discovery.

8. Signage and pavement arrows to direct internal traffic shall be included on plans, subject to City approval.

9. Property owners shall keep parking lot clean at all times.

Exhibit A 1

10. All direct lighting produced by the development must be contained on site. The Owner/Applicant shall ensure any exterior night lighting and illuminated signage installed on the project site is of low intensity, low glare design, minimum height, and shall be hooded to direct light downward onto the subject lot and prevent spill-over onto the adjacent residential lots.

11. The applicant shall ensure all exterior noise generated by the project, such as that generated by the drive-thru ordering system, will comply with Section 9.34.030 Exterior Noise Standards of the Hawthorne Municipal Code. This section provides for an allowable noise level not to exceed 70 dBA between 7:00 am and 10:00 pm and 65 DBA between 10:00ppm and 7:00 am, as measured at the site property lines.

12. All County Fire Department requirements must be met before any building permits will be released.

13. Off-street parking shall be provided at all times in accordance with the originally approved site plan and, per Municipal Code Chapter 8.16, shall be maintained in a clean and attractive manner (striping maintained, pot-holes and cracks repaired, and trash, litter, or other materials shall be removed regularly).

14. Per Municipal Code Chapter 8.14, all landscaped areas shall be maintained in accordance with the originally approved landscaped plan and in a healthy and well-kept condition and kept weed-free.

15. The approved conditions of approval shall be included on building plans upon submission.

16. The Applicant shall ensure patrons do not block loading areas or trash enclosures during hours of operation.

17. The property shall be developed in substantial conformity with the plans approved by the Planning Commission on November 20, 2024, as conditioned by the requirements contained in the resolution of approval for Conditional Use Permit Application CU-2024-0007. Any more intensive use of the property, or deviation from said plans, shall first be reviewed as a modification of this permit.

18. The applicant shall commence construction of the structure or establish the use that is authorized by this approval within three (3) years of the effective date of this approval. Failure to commence construction of the structure or establish the use within that three-year time period shall render this approval null and void any attempt to commence construction or establish the use thereafter shall first require approval of a new application. Applications for a time extension to the commencement date as specified herein must be filed a minimum of thirty (30) days prior to the expiration date. The Planning Director may renew the approval for a single one-year period if a request is received at least 30 calendar days before approval lapses. Requests for a time extension must be accompanied by a formal application, all required exhibits and plans, and the required application fees. Any additional requests for extension shall require Planning Commission approval.

Exhibit A 2

19. The Applicant/property owner must submit payment for all outstanding fees payable to the City prior to issuance of any permit, including building, grading, or demolition.

20. The Applicant shall pay the applicable public facility impact fees to the Building and Safety Department in the amount that is in effect at the time such fees are to be collected.

21. The Applicant shall comply with all applicable requirements and provisions set forth by the Uniform Building Code, Uniform Fire Code, Hawthorne Municipal Code (HMC), and any additional requirements by the Fire Department, Director of Building and Safety, or Director of Planning, as related to this application.

22. All signs, banners, or other outside advertising materials or structures on the property must be approved by the City and shall comply with Chapter 17.35 of the HMC.

23. No outside display of goods, wares, or merchandise shall be permitted, unless approved by the Planning Director.

24. Per the Department of Public Works - Abide by requirements as requested in memo dated September 10, 2024.

25. The applicant shall provide signage and a barrier at the vehicle egress point located at W. 133rd St. to guide cars left onto the street as shown in the attached diagram.

Exhibit A 3
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W 133RD STREET
(MASSACHUSETTS AVE)
PUBLIC R.O.W.
, n
~ PROPOSED SIGN POST
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PROPERTY LINE
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RESOLUTION NO. 8507

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

HAWTHORNE, CALIFORNIA, UPHOLDING THE PLANNING

COMMISSION APPROVAL OF A CONDITIONAL USE PERMIT TO
OPERATE A DRIVE-THRU AT 13324 S. INGLEWOOD AVENUE,

SUBJECT TO CONDITIONS AND MAKING FINDINGS IN SUPPORT

THEREOF
WHEREAS, Scott Wilkeson filed a complete application requesting the approval of a Conditional Use Permit (CUP) for a drive-thru restaurant in accordance with Hawthorne Municipal Code (HMC) Chapter 17.26; and
WHEREAS, the application applies to a property located at 13324 S. Inglewood Avenue, Hawthorne, California, assessor’s parcel number 4042-011-026 and 4042-011- 024; and
WHEREAS, the Land Use Element of the General Plan designates the property as General Commercial and the zoning as General Commercial (c-3); and WHEREAS, in accordance with the HMC Chapters 17.26 and 17.28, a drive-thru restaurant requires the granting of a Conditional Use Permit by the Planning Commission; and
WHEREAS, the Planning Commission found that the project is categorically exempt from the California Environmental Quality Act pursuant to CEQA Guidelines Section 15332, Class 32, which exempts projects consistent with both the General Plan and zoning designations and regulations. The proposed use would occur within City limits on a site of far less than five acres and surrounded by urban uses; and WHEREAS, on October 16, 2024, a duly noticed public hearing on the project was held before the Planning Commission where all interested parties were given an opportunity to be heard; and
WHEREAS, the Planning Commission continued the October 16 meeting to November 20, 2024, and all interested parties were again provided an opportunity to be heard; and
WHEREAS, on November 20, 2024, after evidence was again heard and presented from all persons in favor of the application, from all persons opposed to the application, and from members of the City staff; the Planning Commission, having heard and received all of said evidence, testimony, and statements, and being fully informed of the application, approved Resolution No. 2024-19; and
WHEREAS, the Planning Commission approval was called for review by Council Member Reyes English and a duly noticed public hearing on the project was held 2 December 10, 2024, before the City Council where all interested parties were given an opportunity to be heard; and
WHEREAS, evidence was heard and presented from all persons in favor of the application, from all persons opposed to the application, and from members of the City staff; and that the City Council, having heard and received all of said evidence, testimony, and statements, and being fully informed of the application, upheld Planning Commission Resolution No. 2024-19 with proposed additional conditions; and WHEREAS, the City of Hawthorne Public Works Department received a grant to redesign and rebuild Inglewood Avenue in the near future, and without knowing the specifics of the redesigned street, staff recommends the applicant provide a bond to cover the costs associated with right-of-improvements immediately adjacent to the subject property rather than pay for improvements that may not be included in the final redesign; and
WHEREAS, upon recommendation of the Chief of Police, limiting the hours of operation for the restaurant is not recommended because it creates opportunities for criminal activity on the property during closed hours.

THE CITY COUNCIL OF THE CITY OF HAWTHORNE DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS:

SECTION 1. All of the facts set forth in the Recitals are true and correct, and are incorporated herein by reference.

SECTION 2. The City Council finds that all of the facts set forth in the Recitals are true and correct, and are incorporated herein by reference.

SECTION 3. Based upon substantial evidence presented to the Planning Commission during the October 16, 2024, public meeting, including public testimony and written and oral staff reports, the Planning Commission founds as follows:

1. The proposed use is one for which a CUP is properly authorized by the HMC, as follows: The project site is located in the C-3 zone. HMC Section

17.28.020 permits uses in the C-3 zone that are permitted in the C-2 zone with the approval of a Conditional Use Permit.

2. The drive-thru use will not adversely affect the adjoining land uses, or the growth and development of the area in which it is to be located, as follows:

The project location, in the General Commercial zone, is intended for commercial activity and developments which generate more traffic than less intense commercial zones in the City. However, through careful design and subsequent design review, the drive-thru will be oriented in a way to minimize interference with the adjoining commercial and residential uses.

3. That the size and shape of the site proposed for the use is adequate to allow the full development of the use, in a manner not detrimental to either the 3 particular area or health and safety. The portion of the site dedicated to the drive-thru is more than adequate to accommodate a queue of vehicles. The applicant provided a queuing analysis demonstrating ample space for a total of 11 vehicles to stack in the drive-thru. Additionally, the drive-thru entrance is proposed to be 24 feet wide, accommodating two lanes and two ordering stations. This style of drive-thru design provides additional queuing space and shortens the time in line.

4. That the traffic generated by the drive-thru will not impose an undue burden upon the streets and highways designed and improved to carry the traffic in the area. The purpose of a drive-thru is to collect cars in an orderly queue to receive service. The queue design demonstrates ample space to accommodate vehicles and minimize overflow into the establishment’s parking lot and onto adjoining streets. The property will be accessible via curb cuts on Inglewood Avenue and 134th Street, and subject to directional arrows guiding traffic in one direction to the order boards. An additional curb cut is proposed along 133rd Street, however, this will serve only as an exit to prevent vehicles stacking on 133rd Street.

5. That the granting of the Conditional Use Permit under the conditions imposed will not be detrimental to the health and safety of the citizens of the City of Hawthorne. The granting of the CUP will not be detrimental to the health and safety of the citizens of the City of Hawthorne as conditioned because the drive-thru is a permitted use in the zone and is common in urbanized areas, such as the project site.

SECTION 4. Based on the forgoing, the City Council hereby upholds the Planning Commission Resolution No, 2024-19 for Conditional Use Permit CU-2024-0007 subject to the revised conditions set forth in Exhibit A attached hereto.

SECTION 5. This resolution is effective immediately upon its adoption.

SECTION 6. A copy of this Resolution shall be mailed to the applicant and copies shall be filed with the City Clerk.

SECTION 7. The documents and other materials that constitute the record of the proceedings upon which the City Council’s actions are based, which include, but are not limited to, the staff reports for the project and all of the materials that support the staff reports, are located in the office of the Planning Director of the City of Hawthorne, at 4455 West 126th Street, Hawthorne, California 90250. The custodian of these documents is the Planning Director of the City of Hawthorne.

SECTION 8. The City Clerk shall certify to the passage and adoption of this Resolution and shall forward a copy to the City Manager and City Attorney. 4 PASSED, APPROVED, and ADOPTED this 28th day of January, 2025.

ALEX VARGAS, Mayor
City of Hawthorne, California
ATTEST:

DAYNA WILLIAMS-HUNTER, City Clerk
City of Hawthorne, California

APPROVED AS TO FORM

ROBERT KIM,
City Attorney
City of Hawthorne, California
5 EXHIBIT A

CONDITIONS OF APPROVAL
CONDITIONAL USE PERMIT CU-2024-0007
Application: CU-2024-0007
Applicant: Scott Wilkeson, McDonald’s USA, LLC
Property Owner: 11383 Playa Street LLC c/o Perry G. De Luna Authorized Agent: Robert Preece
Location: 13324 S. Inglewood Avenue

CONDITIONS OF APPROVAL
Conditions of approval are unique provisions, beyond the requirements of law, the municipal code, or standard practices that are applied to a project per Section 17.40.050 of the Zoning Code. Please note that if the design of your project or site conditions change, the conditions of approval may also change. If you have any questions regarding these requirements, please contact the City of Hawthorne.

1. The applicant shall comply with all applicable requirements and provisions set forth by the California Building Code, California Fire Code, Hawthorne Municipal Code, and any additional requirements by the Fire Department, Director of Building Safety, or Director of Planning, as related to this application.

2. The property shall be developed substantially in conformance with the site plan and floor plans received, and approved by the Planning Commission and as conditioned by the requirements contained in this resolution of approval. Any deviation from said plans shall first be reviewed by the Planning Director to determine whether proposed modifications are within the scope of approval.

3. The applicant and subsequent property owners and tenants must conform to all Business License regulations and maintain a current City license at all times.

4. All signs on the property shall comply with Chapter 17.35 of the HMC.

5. Signs shall be posted on the site per California Penal Code Sections 552 through 555.5 and 11532 to prohibit loitering on the property.

6. The number of persons shall not exceed the maximum occupancy load as determined by the Fire Department. Signs indicating the occupant load shall be posted in a conspicuous place on the approved sign near the main exit of the building.
6 7. Graffiti shall be removed within 24 hours of its discovery.

8. Directional signs and pavement arrows to direct internal traffic shall be included on construction plans, and are subject to City approval.

9. All direct lighting produced by the development must be contained on site. The owner and tenant shall ensure any exterior night lighting and illuminated signs installed on the site is of low intensity, low glare design, minimum height, and shall be hooded to direct light downward onto the subject lot and prevent spill-over onto the adjacent residential lots.

11. The applicant shall ensure all exterior noise generated by the project, such as that generated by the drive-thru ordering system, will comply with Section 9.34.030 Exterior Noise Standards of the HMC. This section provides for an allowable noise level not to exceed 70 dBA between 7:00 am and 10:00 pm and 65 DBA between 10:00ppm and 7:00 am, as measured at the site property lines.

12. All County Fire Department requirements must be met before any building permits will be released.

13. The parking lot and drive-thru shall be provided in accordance with the approved site plan, and, per HMC Chapter 8.16, shall be maintained in a clean and attractive manner (striping maintained, pot-holes and cracks repaired, and trash, litter, or other materials shall be removed regularly).

14. Per HMC Chapter 8.14, all landscaped areas shall be maintained in accordance with the approved landscaped plan and in a healthy and well-kept condition and kept weed-free.

15. The tenant shall ensure patrons do not block loading areas or trash enclosures during hours of operation. Further, delivery vehicles may not block parking spaces between 6:00am and 10:00pm daily.

16. The property shall be developed in substantial conformity with the plans approved by the Planning Commission on November 20, 2024, for Conditional Use Permit Application CU-2024-0007. A more intensive use of the property, or significant deviation from said plans, shall be reviewed as a modification of this permit.

17. The applicant shall commence construction of the structure or establish the use that is authorized by this approval within three years of the effective date of this approval. Failure to commence construction of the structure within that three-year period shall render this approval null and void. Any attempt to commence construction of the use thereafter shall first require approval of a new conditional use application. Applications for a time extension to the commencement date as specified herein must be filed in writing a minimum of 30 days prior to the expiration date. The Planning Director may renew the approval for a single one-year period if a request is properly filed. Any additional requests for extension shall require Planning Commission approval.
7 18. The applicant and property owner must submit payment for all outstanding fees payable to the City prior to issuance of any permit, including building, grading, or demolition.

19. The applicant shall pay the applicable public facility impact fees to the Building Safety Department in the amount that is in effect at the time such fees are to be collected.

20. No outside display of goods, wares, or merchandise shall be permitted, unless approved by the Planning Director.

21. Per the Public Works Department, applicant must abide by requirements as requested in memo dated September 10, 2024.

22. The applicant shall provide signs and a barrier (curb) at the driveway located on W. 133rd Street such that no entry to the site shall be permitted at that driveway and all exiting vehicles are limited to left turn only. Further, signs at the driveway located on W. 134rd Street shall be installed that prohibit vehicles exiting the property from that driveway.

23. In lieu of constructing improvements in the public right-of-way, the applicant shall agree to post a bond of $40,000 to finance the cost of specified public right-of-way improvements immediately adjacent to the subject property, should they be included in the specifications of the Public Works Department related to the impending redesign and construction of Inglewood Avenue. The bond shall be dismissed if not used after five years from its filing. The specified improvements are: a) pedestrian crosswalk over Inglewood Avenue; b) signals and signs related to the crosswalk; c) left turn lane to the property’s Inglewood Avenue driveway or to 134th Street for southbound vehicles on Inglewood Avenue.

24. The drive-thru may be operated 24 hours per day. However, if within the first six months of operations the Chief of Police determines that these hours create a public nuisance, and allowing some time, at the discretion of the Chief, to remedy said nuisance, the drive-thru shall remain closed from 12:00am until 5:00 am daily.

25. These conditions of approval shall be included on building plans upon submission.

AGENDA ITEM NO. 6.

CITY OF HAWTHORNE
City Council

AGENDA BILL
For the meeting of 01/28/2025
Originating Department: City Attorney
City Manager: Department Head:

SUBJECT:

RESOLUTION NO. 8509

A RESOLUTION OFTHE CITY COUNCIL OFTHE CITY OF HAWTHORNE, CALIFORNIA, AMENDING THEMEMBERSHIP

COMPOSITION OFTHE KHHR COMMUNITIES NETWORK COMMITTEE AND CLARIFYING THEELECTIONS AND TERMS

OFTHE CHAIR AND VICE-CHAIR
RECOMMENDED MOTION:

Staff Recommends that the City Council adopt Resolution No. 8509 DISCUSSION:

The City of Hawthorne maintains the Hawthorne Municipal Airport ("Airport"), which is currently the subject of a master lease agreement between the City of Hawthorne and Hawthorne Airport, LLC. The city adopted Resolutions No. 8030 and 8038 help address community concerns as to noise and the general operation of the airport. After the implementation of the committee, the city amended the composition of the committee to remove the FAA, who were not allowed to participate, and to add the representatives from the City of Manhattan Beach and Beach Cities Aviation Academy. This resolution would once again amend the composition of the committee by removing members who are either no longer in existence, are redundant, or who have asked to be removed. This will help the committee reach a quorum on a more regular basis. This resolution also clarifies a conflicting provision as to the term and elections of the Chair and Vice-Chair. In order to avoid confusion, this resolution repeals resolution no. 8120 in its entirety.

ECONOMIC DEVELOPMENT STRATEGIC PLAN:

N/A
FISCAL IMPACT:

None
NOTICING PROCEDURE:
72 hours posted notice pursuant to the Ralph M. Brown Act

ATTACHMENTS
RESOLUTION NO. 8509
- 1 -
RESOLUTION NO. 8509

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

HAWTHORNE, CALIFORNIA, AMENDING THE MEMBERSHIP

COMPOSITION OF THE KHHR COMMUNITIES NETWORK

COMMITTEE AND CLARIFYING THE ELECTIONS AND

TERMS OF THE CHAIR AND VICE-CHAIR
WHEREAS, the City of Hawthorne maintains the Hawthorne Municipal Airport (“Airport”), which is currently the subject of a master lease agreement between the City of Hawthorne and Hawthorne Airport, LLC; and
WHEREAS, the Airport’s approaching and departing flight paths cross over residential properties to the east, west and southerly directions; and WHEREAS, on October 9, 2018, the City of Hawthorne adopted Resolution No. 8030 to encourage implementation of the Voluntary Pilot Guide and noise abatement procedures as a follow-up to the Federal Aviation Administration’s (“FAA”) approval of the Hawthorne Airport Noise Compatibility Program; and
WHEREAS, on December 11, 2018, the City Council adopted Resolution No. 8038 which established the KHHR Communities Network Committee (“KHHR Committee”) to address Airport concerns in an open, transparent and organized manner; and WHEREAS, on August 27, 2019 the City Council adopted Resolution No. 8120 replacing the FAA, after it notified the City of Hawthorne that it is not permitted to participate in the KHHR Committee meeting, with a representative from the City of Manhattan Beach as well as replacing the Planning & Zoning Commission representative with a representative from the Beach Cities Aviation Academy; and
WHEREAS, in order to ensure more reliable attendance by a quorum of members, the City Council now wishes to further amend the composition of the KHHR Committee; and WHEREAS, Advanced Air LLC dba Jet Center Los Angeles has agreed to be removed to help lower the number necessary for a quorum as Hawthorne Airport LLC is on the KHHR Committee and can represent their interests; and
WHEREAS, Star Helicopter and Hawthorne Hanger Operations are no longer present at the Airport and Beach Cities Aviation Academy has expressed a desire to no longer be on the KHHR Committee; and
WHEREAS, a member of Planning & Zoning Commission will be reinstated as a member, to be selected by the Planning & Zoning Commission from among their active members; and
- 2 -
WHEREAS, Resolution No. 8038 section 3, subsection III, also needs to be amended for clarity as it states the term for Chair and Vice-Chair is two years but goes on to require elections every year; and
WHEREAS, in order to avoid confusion the City Council will repeal Resolution No. 8120 in its entirety.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hawthorne does hereby find, determine and order as follows:

Section 1. The City Council of the City of Hawthorne, California, hereby incorporates by reference all the recitals herein and finds that they are true and correct.

Section 2. The Council of the City of Hawthorne, California hereby repeals Resolution No. 8120 adopted on August 27, 2019.

Section 3. The Council of the City of Hawthorne, California hereby amends Resolution No. 8038 pertaining to membership in the KHHR Committee by replacing section 3 subsection II in its entirety with the following:

Membership. The Committee shall be composed of fourteen (14) members. Members shall serve at the pleasure of the appointing party. One member shall be appointed from and by each of the following businesses, groups, geographic areas and/or organizations: (1) City Council of the City of Hawthorne (must be an elected member of City Council); (2) the City of Manhattan Beach; (3) City of Redondo Beach; (4) City of Gardena; (5) City of Hermosa Beach; (6) Hawthorne Airport, LLC; (7) Ramona Homeowner’s Association; (8) Holly Glen Homeowner’s Association; (9) Unincorporated L.A. County area of West Athens (must be resident); (10) Holly Park Homeowner’s Association; (11) North Hawthorne Homeowner’s Association; (12) City of Hawthorne Planning and Zoning Commission (must be member); (13) Unincorporated L.A. County area of Wiseburn; and (14) the City of Los Angeles community of Harbor Gateway North (must be resident). The member from the City Council must be appointed by the City Council from among its active members. The Planning & Zoning Commission member must be chosen by the Planning & Zoning Commission from among its active members.

Geographic areas located within the City or County of Los Angeles that do not have a Homeowner’s Association to perform the function of appointment shall have members appointed by the Office of the Supervisor of the Second District, or Office of the Councilmember representing the District in which it is located. A letter of appointment from the appropriate official of the Supervisorial District or Councilmember’s Office will be required before an individual may serve.

Section 4. The Council of the City of Hawthorne, California hereby amends Resolution No. 8038 pertaining to the Chair and Vice-Chair of the KHHR Committee by replacing the final sentence in section 3 subsection III with the following:
- 3 -
Elections shall take place in January of every odd year or as soon thereafter as practicable.

Section 5. Except as otherwise specifically amended in this Resolution, all other provisions of Resolution No. 8038 (a true and correct copy is attached as “Exhibit A” to this Resolution) establishing the KHHR committee shall remain in full force and effect Section 6. The City Clerk shall certify to the adoption of this Resolution and shall take effect immediately.

PASSED, APPROVED, and ADOPTED this 28th day of January, 2025. ______________________________
ALEX VARGAS, Mayor
City of Hawthorne, California
ATTEST:
______________________________
DAYNA WILLIAMS-HUNTER, City Clerk
City of Hawthorne, California
APPROVED AS TO FORM:
___________________________________
ROBERT M. KIM, City Attorney
City of Hawthorne, California
AGENDA ITEM NO. 7.

CITY OF HAWTHORNE
City Council

AGENDA BILL
For the meeting of 01/28/2025
Originating Department: Public Works
City Manager: Department Head:

SUBJECT:

Progress Payment #3 in the amount of $131,021.08 due to Sequel Contractors, Inc. of Santa Fe Springs, CA for 120th St Improvements - Crenshaw Blvd to Felton Ave, Phase II (Project #21-03) RECOMMENDED MOTION:

Staff recommends that the City Council approve this Progres Payment #3 to Sequel Contractors, Inc. of Santa Fe Springs, CA
DISCUSSION:

This project consists of excavation and removal of existing pavement, concrete and asphalt paving, construction of curb and gutter, sidewalks, driveways, storm drain, potholing and ADA ramps. In addition, work will include traffic striping, adjustment of utilities and all other work necessary to complete the improvements in accordance with the plans and specifications.

Traffic control, striping, cold milling and paving were performed up to this time.

ECONOMIC DEVELOPMENT STRATEGIC PLAN:

This project is a result of the City working closely with funding and regulatory agencies to support and improve our infrastructure.

FISCAL IMPACT:

None. Funds for this progress payment in the amount of $131,021.08 are available in the adopted Fiscal Year 2024-2025 budget and will be paid for with the approved and allocated MTA Measure R Grant.

NOTICING PROCEDURE:
72 hours posted notice pursuant to the Ralph M. Brown Act

ATTACHMENTS
Progress Payment #3

AGENDA ITEM NO. 8.

CITY OF HAWTHORNE
City Council

AGENDA BILL
For the meeting of 01/28/2025
Originating Department: Finance
City Manager: Department Head:

SUBJECT:

Retiree Healthcare Plan June 30, 2024 GASBS 75 Actuarial Report RECOMMENDED MOTION:

Staff recommends that the City Council accept and file the OPEB Valuation Report for Fiscal Year ending June 30, 2024, and approve contribution to OPEB Trust.

DISCUSSION:

The City of Hawthorne provides medical insurance for retired employees subject to certain limitations.

This type of employee benefit is referred to as Other Post-Employment Benefits (OPEB), other than pensions, that employers provide to their retired employees. The City of Hawthorne is required to measure and disclose an amount for annual OPEB costs. Annual OPEB cost is determined by an actuarial valuation required every two years. Actuarial valuations involve estimates and assumptions about the probability of occurrence of events far into the future.

The City engaged Foster & Foster Actuaries to prepare an actuarial valuation of their post-retirement benefits program as of June 30, 2023. In accordance with GASB, this valuation was used to provide the attached June 30, 2024 GASBS 75 disclosure report. This report was prepared using employee census data, enrollment data, premiums, participant contributions and plan provision information provided by personnel of the City Hawthorne. Foster & Foster did not audit this data, although it was reviewed for reasonability. The results of the valuation are dependent on the accuracy of the data. The purpose of the report is to provide the current funded position of the City's post-retirement benefits program and related accounting information to be reported in the City's June 30, 2024, financial statement.

Key results:
- Actuarial accrued liability totaled $104,312,362, which represents an increase of $3.6 million from the previous year of $100,714,992. Considering the OPEB trust Fiduciary Net Position, the Net Liability total drops to $100,619,074, which is a decrease in liability of $96 thousand. - Annual Benefit Payments $3,231,292 for 2022/23 and $3,211,093 for 2023/2024. - Assumption change:

Increase in the discount rate from 3.54% to 4.27% reflects the additional investment earning expected now that the City is partially pre-funding the benefit in a trust All assumptions are based on a partially pre-funded status at the measurement period being July 2022 through June 2023
The City began pre-funding in the PARS Balanced Strategy with a $3.5 million contribution in November 2022. An additional $1 million contribution was made in April 2024.

Recommendation:

In order to pay down the unfunded actuarial liability over a 17 year period, the City should contribute $4.85 million to the OPEB trust in fiscal year 2024-25. With Council approval, this contribution will be made in January 2025.

ECONOMIC DEVELOPMENT STRATEGIC PLAN:

Create financial stability by reducing long-term liabilities and improving the City's net position.

FISCAL IMPACT:

None.

NOTICING PROCEDURE:
72 hours posted notice pursuant to the Ralph M. Brown Act

ATTACHMENTS
June 30, 2024, GASBS 75 Accounting Information Report
June 30, 2023, OPEB Actuarial Valuation Report
City of Hawthorne
Retiree Healthcare Plan
June 30, 2024 GASBS 75 Accounting Information
As of Measurement Date June 30, 2023
Based on the June 30, 2023 Actuarial Valuation
Doug Pryor, ASA, EA, MAAA
Katherine Moore, ASA, MAAA
Matthew Childs
Foster & Foster, Inc.

October 23, 2024
Topic Page
Applicable Dates
Note Disclosures
Required Supplementary Information
Actuarial Certification
Supporting Calculations
Journal Entries
l:\hawthornecity\opeb\2023\gasbs_75\2024\f&f_hawthornecity_24-10-23_gasbs75_24-06-30_report.pdf 2 14
19 20
31 1
Contents
■ Measurement date
■ Measurement period
■ Actuarial valuation date
Applicable Dates and Periods
Applicable Dates
June 30, 2023
July 1, 2022 to
June 30, 2023
June 30, 2023
Fiscal Year Ended
June 30, 2024
City of Hawthorne
1 October 23, 2024 GASBS 75
■ Plan type
■ OPEB trust
■ Special funding situation
■ Nonemployer contributing entities
■ Plan closed to new entrants Yes
No
Plan Information
Note Disclosures
Fiscal Year Ended
June 30, 2024
Agent Multiple Employer
Yes
No
City of Hawthorne
2 October 23, 2024 GASBS 75
■ Asset Class Component
● Global Equity
● Fixed Income
● Cash
■ Assumed Long-Term Rate of Inflation
■ Expected Long-Term Net Rate of Return, Rounded
Expected Real

4.56%

0.78%
Rate of Return
Expected Long-Term Rate of Return
Note Disclosures
Target Allocation
PARS-Balanced
60%
35%
5%

5.75%
(0.50%)

2.50%
The long-term expected real rates of return are presented as geometric means.

City of Hawthorne
3 October 23, 2024 GASBS 75
■ Inactives currently receiving benefits
■ Inactives entitled to but not yet receiving benefits
■ Active employees
■ Total
Covered Participants
Number of
Covered
Participants
262
260
583
61 Note Disclosures
At June 30, 2023, the measurement date, the following numbers of participants were covered by the benefit terms:

City of Hawthorne
4 October 23, 2024 GASBS 75
■ Total OPEB Liability (TOL)
■ Fiduciary Net Position (FNP)*
■ Net OPEB Liability (NOL)
■ Funded status (FNP/TOL)
* Asset information is from PARS' "Public Agencies Post-Employment Benefits Trust Schedule of Changes in Fiduciary Net Position by Subaccount" (audited asset statement) for the year ended June 30, 2023.

Fiscal Year Ended
Note Disclosures
100,714,992 100,619,074

0.0% 3.5%
Net OPEB Liability/(Asset)
-
6/30/24
6/30/23
$ 104,312,362
3,693,288
6/30/23
6/30/22
$ 100,714,992
Measurement Date Measurement Date
City of Hawthorne
5 October 23, 2024 GASBS 75
■
■ Changes for the year
● Service Cost
● Interest
● Changes of benefit terms
● Actual vs. expected experience
● Assumption changes
● Contributions - employer*
● Contributions - employee
● Net investment income
● Benefit payments*
● Administrative expenses**
■ Net Changes
■
* See the measurement period column on page 20 for details. ** Includes trust administrative expenses on page 27 and other administrative expenses on page 20. 198,459 - (198,459)
(6,740,492)
3,597,370
14,371
(3,231,292) (3,231,292) -
6,671,414
3,621,358
- - -
-
Total OPEB
Liability
Fiduciary Net
Position
- 6,671,414
(6/30/22 measurement date)
$ -
(6/30/23 measurement date)
Balance at 6/30/24
Note Disclosures
Changes in Net OPEB Liability/(Asset)
Balance at 6/30/23
Net OPEB
Liability
-
(95,918)
3,198,898
3,693,288
3,198,898
$ 100,714,992 100,714,992 $
$ 3,693,288 104,312,362 $ 100,619,074 $
-
(14,371) -
- (6,663,008)
3,621,358
- -
(6,663,008)
6,740,492 -
City of Hawthorne
6 October 23, 2024 GASBS 75
■
■ Net OPEB Liability
■
■ Net OPEB Liability 85,953,001 $ 100,619,074 $ 119,168,552 $ Changes in the Discount Rate
Changes in the Healthcare Trend Rate
Healthcare Trend Rate
1% Decrease Current Trend 1% Increase
$ 100,619,074 117,448,517 $ 87,154,666 $
Sensitivity of Net OPEB Liability/(Asset)
1% Decrease
(3.27%)
Current Rate
(4.27%)
1% Increase
(5.27%)
Discount Rate
Note Disclosures
City of Hawthorne
7 October 23, 2024 GASBS 75
■ OPEB Expense/(Income)*
* See page 26 for OPEB expense/(income) detail, which is not a required disclosure.

OPEB Expense/(Income) for Fiscal Year
2023/24
$ 2,573,745
Note Disclosures
2022/23
Measurement Period
City of Hawthorne
8 October 23, 2024 GASBS 75
■
■ Changes in assumptions
■
■
■ Total
* See page 20 for details.

Net difference between projected and
actual earnings on plan investments
Employer contributions made
subsequent to the measurement date*
33,343,680 17,799,676
26,040,922 8,057,761
59,066 -
- 4,220,745
June 30, 2024
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
$ 7,243,692 5,521,170 $ Differences between expected and actual experience
Deferred Outflows/Inflows Balances at June 30, 2024
Note Disclosures
City of Hawthorne
9 October 23, 2024 GASBS 75
■ 2025
■ 2026
■ 2027
■ 2028
■ 2029
■ Thereafter
in Future OPEB Expense
$ (3,567,902)
(5,921,453)
(3,467,693)
-
1,156
Deferred
Outflows/(Inflows)
FYE June 30 of Resources
(6,808,857)
Recognition of Deferred Outflows and Inflows of Resources Note Disclosures
City of Hawthorne
10 October 23, 2024 GASBS 75
■ ■
■ ■
■ ■
■
■
■ ■

■ ■
■ ■
■
■
■ ■
Actuarial Assumption June 30, 2023 Measurement Date
Note Disclosures
Significant Actuarial Assumptions Used for Total OPEB Liability General Inflation

3.54% at June 30, 2022

2.50% annually

5.75% at June 30, 2023
(Bond Buyer 20-Bond Index)

3.54% as of June 30, 2022
Bond Buyer 20-Bond GO Index
Municipal Bond Rate 3.65% as of June 30, 2023
Actuarial Valuation Date June 30, 2023
Contribution Policy City makes ad-hoc contibutions to the trust and makes benefit payments outside of the trust
Crossover Test Projected contributions based on expected pay-go costs less normal costs for future new members
plus $1 million annual trust contribution
Discount Rate
Long-Term Expected
Rate of Return on Assets
City contributions are not projected to be sufficient
to pay all benefits from plan assets. Crossover
occurs in fiscal year 2043/44

4.27% at June 30, 2023
City of Hawthorne
11 October 23, 2024 GASBS 75
■ ■
■ ■
■ ■
■
■ ■
■
■
■ ■
■
Medicare (Kaiser) - 5.65% for 2026, decreasing to
an ultimate rate of 3.45% in 2076
Healthcare Participation Actives - 95%
at Retirement Retirees - 100% if covered, 5% re-elect at 65 if waived
Significant Actuarial Assumptions Used for Total OPEB Liability Actuarial Assumption June 30, 2023 Measurement Date
Medicare (Non-Kaiser) - 6.90% for 2026,
decreasing to an ultimate rate of 3.45% in 2076
Salary Increases Aggregate - 2.75% annually
Merit - CalPERS 2000-2019 Experience Study
Non-Medicare - 7.90% for 2026, decreasing to an
ultimate rate of 3.45% in 2076
Medical Trend
Mortality Improvement Mortality projected fully generational with Scale MP-2021
Mortality, Retirement,
Disability, Termination
CalPERS 2000-2019 Experience Study
Note Disclosures
City of Hawthorne
12 October 23, 2024 GASBS 75
■ ■
■
■ Changes of benefit terms None ■
Note Disclosures
Updated medical trend
Changes Since June 30, 2022 Measurement Date
June 30, 2023 Measurement Date
Changes of assumptions Discount rate was updated based on crossover test City of Hawthorne
13 October 23, 2024 GASBS 75
■ Changes in Total OPEB Liability
● Service Cost
● Interest
● Changes of benefit terms
● Actual vs. expected experience
● Assumption changes
● Benefit payments
■ Net Changes
■ Total OPEB Liability (beginning of year)
■ Total OPEB Liability (end of year)
Schedule of Changes in Net OPEB Liability/(Asset) and Related Ratios Required Supplementary Information
2023/24
2022/23
Measurement Period
3,621,358
6,671,414
$ 3,198,898
104,312,362
100,714,992
(6,663,008)
(3,231,292)
3,597,370
-
City of Hawthorne
14 October 23, 2024 GASBS 75
■ Changes in Plan Fiduciary Net Position
● Contributions - employer
● Contributions - employee
● Net investment income
● Benefit payments
● Administrative expenses
● Other changes
● Net Changes
■ Plan Fiduciary Net Position (beginning of year)
■ Plan Fiduciary Net Position (end of year)
$ 6,740,492
-
-
3,693,288
-
2022/23
Schedule of Changes in Net OPEB Liability/(Asset) and Related Ratios 3,693,288
198,459
Required Supplementary Information
(3,231,292)
(14,371)
2023/24
Measurement Period
City of Hawthorne
15 October 23, 2024 GASBS 75
■
■
■
■
* For the 12-month period ended on June 30, 2023 (Measurement Date).

As reported by the City.
2023/24
Fiduciary Net Position as a percentage of the
Total OPEB Liability
Covered employee payroll*
Net OPEB Liability as a percentage of covered
employee payroll
Net OPEB Liability/(Asset)

3.5%
$ 100,619,074
31,883,839
315.6%
Measurement Date
6/30/23
Schedule of Changes in Net OPEB Liability/(Asset) and Related Ratios Required Supplementary Information
City of Hawthorne
16 October 23, 2024 GASBS 75
■
■
■
■
■
* See page 20 for details.
** For the 12-month period ended on June 30, 2024 (fiscal year end).

As reported by the City.

Covered employee payroll** 32,583,616
Contributions as a percentage of covered
employee payroll

13.0%
Contributions in relation to the actuarially
determined contribution*
Contribution deficiency/(excess) 4,126,255
4,220,745
Fiscal Year
2023/24
Actuarially Determined Contribution (ADC) $ 8,347,000
Required Supplementary Information
Schedule of Employer Contributions
City of Hawthorne
17 October 23, 2024 GASBS 75
■ ■
■ ■
■ ■
■ ■
■ ■
■ ■
■ ■
■ ■
■
■
■ ■
■ Mortality Improvement Mortality projected fully generational with Scale ■ MP-2021
General Inflation 2.50%
Medical Trend Non-Medicare - 7.90% for 2026, decreasing to an ultimate rate of 3.45% in 2076
Medicare (Kaiser) - 5.65% for 2023, decreasing to
an ultimate rate of 3.45% in 2076
Mortality CalPERS 2000-2019 Experience Study
Medicare (Non-Kaiser) - 6.90% for 2026,
decreasing to an ultimate rate of 3.45% in 2076
Discount Rate 5.75%
Amortization Method Level % of pay
Amortization Period 18-year fixed period for 2023/24
Asset Valuation Method Set to Market Value of Assets
Valuation Date June 30, 2023
Actuarial Cost Method Entry Age Normal, Level % of pay
2023/24 Actuarially Determined Contribution
Methods and Assumptions for
Required Supplementary Information
Notes to Schedule of Employer Contribution
City of Hawthorne
18 October 23, 2024 GASBS 75
To the best of our knowledge, this report is complete and accurate and has been conducted using generally accepted actuarial principles and practices and complies with applicable Actuarial Standards of Practice. Additionally, in our opinion, actuarial methods and assumptions comply with GASBS 75. As the actuary, we have recommended the assumptions used in this report, and we believe they are reasonable. As members of the American Academy of Actuaries meeting the Academy Qualification Standards, we certify the actuarial results and opinions herein.

Respectfully submitted,
This report presents the City of Hawthorne Retiree Healthcare Plan 2023/24 disclosure under Governmental Accounting Standards Board Statement No. 75 (GASBS 75). This report may not be appropriate for other purposes, although it may be useful to the City for the Plan’s financial management.

Future actuarial measurements may differ significantly from the current measurements presented in this report due to such factors as: plan experience differing from that anticipated by the assumptions; changes in assumptions; changes expected as part of the natural progression of the plan; and changes in plan provisions or applicable law. Actuarial models necessarily rely on the use of estimates and are sensitive to changes. Small variations in estimates may lead to significant changes in actuarial measurements. Due to the limited scope of this assignment, we did not perform an analysis of the potential range of such measurements.

This report is based on information provided by the City which we relied on and did not audit. Additional information on the actuarial valuation can be found in the June 30, 2023 actuarial valuation report.

Actuarial Certification
The Journal Entries in this report are provided for the City's convenience and are not an actuarial communication. Therefore, this actuarial certification does not apply to the Journal Entries.

Katherine Moore, ASA, MAAA
Foster & Foster, Inc.

October 23, 2024
Doug Pryor, ASA, EA, MAAA
Foster & Foster, Inc.

October 23, 2024
City of Hawthorne
19 October 23, 2024 GASBS 75
■
■
■
■
■
■
■
■
■
Measurement period (7/1/22 to 6/30/23): $6,740,492
Fiscal year (7/1/23 to 6/30/24): $4,220,745
- - -
$ 2,769,064 2,588,292 $
3,211,093 3,231,292 3,231,292
Measurement
Period
Measurement
Date to FYE
Prior
Measurement
Date to Prior
FYE
7/1/22 to
6/30/23
7/1/23 to
6/30/24
Same as
Measurement
Period
Employer Contributions
Supporting Calculations
4,220,745 6,740,492 6,740,492
-
3,500,000 1,000,000 3,500,000
- -
Total employer contributions
Non-trust admin expenses reimbursed from trust
Trust contributions
9,200
Cash benefit payments
Implicit subsidy benefit payments
Total benefit payments
Benefit payments reimbursed from trust
Benefit payments paid outside of trust
Non-trust admin expenses
3,211,093 3,231,292 3,231,292
9,652 9,200
$ 2,588,292
442,029 643,000 643,000
City of Hawthorne
20 October 23, 2024 GASBS 75
* Participants with no liability excluded for the purpose of calculating the average. 6/30/21 3,155.2 years 544 5.8 years
6/30/23 3,034.7 years 525 5.8 years 5.8 years
July 1, 2022 (beginning of the measurement period) was not a valuation date and no census data was available to the actuary as of that date. Therefore, the average of the expected remaining service lives was estimated as follows:

Valuation
Date
Total expected
remaining
service lives*
Covered
participants*
Average of the
expected
remaining
service lives as of
valuation date
Average of the
expected
remaining
service lives as of
7/1/22 (not less
than 1 yr)
Average of the Expected Remaining Service Lives
Supporting Calculations
City of Hawthorne
21 October 23, 2024 GASBS 75
Total (2,959,975) (2,021,010) (1,395,030) (376,920) 1,150,244 920,194 - 23/24 5.8 1,150,244 1,150,244 1,150,244
Fiscal
Year 26/27
1,150,244
19/20 5.4 (1,564,945) (625,980)
Differences between Expected and Actual Experience
Recognition of Deferred Outflows/Inflows at June 30, 2024 Supporting Calculations
- 920,194
Initial
Recog
Period
Amount Recognized in OPEB Expense for FY
23/24 24/25 28/29 29/30+ 25/26 27/28
1,150,244
18/19 - - - - - - - -
- - - - -
20/21 - - - - - - - -
- -
21/22 5.6 (2,545,274) (2,545,274) (2,545,274) (1,527,164) - - - 22/23 - - - - - - - -
(6,617,712) -
Deferred Balances
June 30, 2024
Outflows (Inflows)
- 5,521,170
(7,243,692) 5,521,170
Initial Amt
-
(8,450,705)
-
(14,253,534)
-
6,671,414
- -
(625,980) -
- -
City of Hawthorne
22 October 23, 2024 GASBS 75
Total (1,161,514) (1,532,125) (4,511,656) (6,417,170) (4,603,172) (919,038) - 23/24 5.8 (1,148,794) (1,148,794)
Fiscal
Year
(1,148,794) (1,148,794) (919,038) (1,148,794) -
24/25 25/26 26/27 27/28 28/29
Initial
Recog
Period
Amount Recognized in OPEB Expense for FY
23/24 29/30+
-
Recognition of Deferred Outflows/Inflows at June 30, 2024 Supporting Calculations
Changes of Assumptions
18/19 5.3 (290,000) - - - - - -
19/20 5.4 1,101,022 440,411 - - - -
20/21 5.5 5,078,235 5,078,235 2,539,115 - - - -
21/22 5.6 (1,584,007) (1,584,007) (1,584,007) (950,406) - - - 22/23 5.8 (4,317,970) (4,317,970) (4,317,970) (4,317,970) (3,454,378) - - - 7,617,350
(4,118,420) -
Deferred Balances
June 30, 2024
Outflows (Inflows)
(16,408,288) -
(5,514,214) -
(26,040,922) 8,057,761
Initial Amt
(5,105,000)
5,945,521
27,930,290
(8,870,441)
(25,044,228)
(6,663,008)
- -
- 440,411
City of Hawthorne
23 October 23, 2024 GASBS 75
Calculation of initial amount for 2023/24 (2022/23 measurement period):

Projected earnings on investments of $124,626 (page 27), less Actual earnings on investments of $198,459 (net investment income, page 15) Net Deferred Outflows/(Inflows) (59,066) -
Total (14,767) (14,767) (14,767) (14,767) (14,765) - -
23/24 5.0 (14,767) (14,767) (14,767)
Fiscal
Year 26/27
(14,767)
-
- -
Recognition of Deferred Outflows/Inflows at June 30, 2024 Projected Versus Actual Earnings on Investments
Supporting Calculations
- -
Initial
Recog
Period
Amount Recognized in OPEB Expense for FY
23/24 24/25 28/29 29/30+ 25/26 27/28
(14,765)
-
22/23 - - - - - - -
21/22 - - - - - - -
20/21 - - - - - -
19/20 - - - - - - - -
- -
- -
Deferred Balances
June 30, 2024
Outflows (Inflows)
- -
(59,066) -
(59,066) -
Initial Amt
-
-
-
-
(73,833)
- -
City of Hawthorne
24 October 23, 2024 GASBS 75
■
■
■
■ 1,156 -
Supporting Calculations
Recognition of Deferred Outflows/Inflows in Future OPEB Expense (14,767) (14,767) (14,767) (14,765)
(1,395,030) (2,021,010) (376,920) 1,150,244
(4,511,656) (1,532,125) (6,417,170) (4,603,172)
Differences between
Expected and
Actual Experience
Changes of
Assumptions
Projected Versus
Actual Earnings on
Investments
Total
29/30+
-
-
-
28/29
920,194
(919,038)
-
(5,921,453) (3,567,902) (6,808,857) (3,467,693)
Thereafter
24/25 25/26 26/27 27/28
City of Hawthorne
25 October 23, 2024 GASBS 75
■ Service Cost
■ Interest on Total OPEB Liability
■ Projected earnings on investments
■ Employee contributions
■ Administrative expense
■ Changes of benefit terms
■ Recognition of deferred outflows/(inflows)
● Experience
● Assumptions
● Asset returns
■ OPEB Expense/(Income) 2,573,745
2023/24
$ 3,198,898
3,621,358
(124,626)
(1,161,514)
(14,767)
-
14,371
-
Measurement Period
Supporting Calculations
Components of GASBS 75 OPEB Expense
(2,959,975)
2022/23
City of Hawthorne
26 October 23, 2024 GASBS 75
■
■
■
■
■
■
* The items on this page reflect trust activity only.
-
Administrative expenses 5.75% 50% (149) (5,171)
Disbursements
Employee contributions 5.75% -

5.75% 0% - -
0%
Projected earnings 124,626
Dollar
Amount
Expected
Return
Portion of
Year
Projected
Earnings
Components of GASBS 75 OPEB Expense*
Supporting Calculations
2022/23 Measurement Period
Calculation of Projected Earnings on Investments
Employer contributions 5.75% 62% 124,775 3,500,000
Fiduciary Net Position
(beginning of year)
$ 5.75% 0% - - $
City of Hawthorne
27 October 23, 2024 GASBS 75
■
■
■
■
■
■
■
* Liability determined as of the end of the measurement period, so no interest charge is applicable. 2022/23 Measurement Period
-

3.54% 0% - (6,663,008)

3.54% 0% - 6,671,414
Changes of benefit terms
Assumption changes*

3.54% 0% -
Experience*
Total interest
$ 3.54% 100,714,992
Benefit payments
$ 3,565,311
113,241

3.54% 50% (3,231,292) (57,194)
Total OPEB Liability
Service Cost
3,621,358
100%

3.54% 100% 3,198,898
Components of GASBS 75 OPEB Expense
Portion of
Year
Supporting Calculations
Calculation of Interest on Total OPEB Liability
Interest
Dollar
Amount
Discount
Rate
City of Hawthorne
28 October 23, 2024 GASBS 75
■ Total OPEB Liability
■ Fiduciary Net Position
■ Net OPEB Liability/(Asset)
■ Deferred inflows of resources
■ Deferred (outflows) of resources
■ Balance Sheet
Check:
■ Balance Sheet 6/30/23
● OPEB Expense/(Income)
● Employer Contributions*
■ Balance Sheet 6/30/24
* See the measurement period column on page 20 for details. (14,237,018) (13,578,931)
3,693,288 -
100,619,074 100,714,992
33,343,680 38,072,596
120,383,823
(6,740,492)
2,573,745
120,383,823 124,550,570
$ 124,550,570
6/30/22 6/30/23
$ 104,312,362 100,714,992 $
Fiscal Year Ended
6/30/23 6/30/24
Measurement Date Measurement Date
GASBS 75 Balance Equation
Supporting Calculations
City of Hawthorne
29 October 23, 2024 GASBS 75
This page intentionally blank
Supporting Calculations
City of Hawthorne
30 October 23, 2024 GASBS 75
■
■
■
■
■
Check
Deferred Outflow - 7/1/22 to 6/30/23 contributions
Deferred Outflow - 7/1/23 to 6/30/24 contributions
$ 6,740,492
-
4,220,745
$ -
(6,740,492)
-
Employer Contributions
Journal Entries
The entries below assume cash benefit payments, Trust contributions, and administrative expenses have been charged to OPEB Expense when paid, and that no accounting entries have been made for the current year implicit subsidy payment, which is recorded as a reduction to active employee health care costs. See page 20 for details.

Following records the impact of employer contributions as deferred outflows of resources and as a reduction to Net OPEB Liability.

Debit (Credit)
Net OPEB Liability - (for contributions paid 7/1/22 to
6/30/23)
10,961,237 (10,961,237)
Active employee health care costs - (implicit subsidy payments 7/1/23 to 6/30/24)
OPEB Expense - (for contributions paid 7/1/23 to 6/30/24) -
-
(442,029)
(3,778,716)
City of Hawthorne
31 October 23, 2024 GASBS 75
Following records the impact of current year OPEB expense ■ Deferred Outflows*
■ Deferred Inflows**
■ OPEB Expense/Credit
■ Net OPEB Liability
Check
* See page 34 ('Subtotal' row) for details.
** See page 35 for details.
(12,882,897) 12,882,897
(59,066)
- 2,573,745
(6,644,574) -
Summary Journal Entries - OPEB Expense
Journal Entries
Debit (Credit)
$ (6,179,257) 5,521,170 $
4,787,982
City of Hawthorne
32 October 23, 2024 GASBS 75
■
■ Deferral: Changes of assumptions
■
■
■ Net OPEB Liability (NOL)
■ Contributions after the Measurement Date
■ Net Impact
Check:
■ Total OPEB expense/(income) for FYE 2024
- 116,163,078
4,220,745
(100,619,074)
-
(59,066)
Deferral: Net differences between projected and
actual earnings on plan investments
-
Total deferred outflow/inflow 13,578,931 (33,343,680)
-
Ending Balances at June 30, 2024
(26,040,922) 8,057,761
Deferral: Differences between expected and actual
experience
Debit (Credit)
$ (7,243,692) 5,521,170 $
Journal Entries
(133,962,754) 133,962,754
- 2,573,745
City of Hawthorne
33 October 23, 2024 GASBS 75
■
■
■
■
■
■
4,220,745 6,740,492 (6,740,492) 4,220,745
Total Deferred Outflows 9,741,915 20,977,510 (12,919,749) 17,799,676 Contributions after the Measurement Date
Differences between projected and actual
earnings on plan investments - - - -
Subtotal - actuarial deferrals 14,237,018 5,521,170 (6,179,257) 13,578,931 Differences between actual and expected
experience $ 5,521,170 - $ - $ 5,521,170 $
Change in assumptions - 14,237,018 (6,179,257) 8,057,761 Opening
Balance -
Debit
Journal
Entry -
Debit
Journal
Entry -
(Credit)
Ending
Balance -
Deferred Outflows Debit
Detail for page 32
Reconciliation of Deferred Outflows
Journal Entries
City of Hawthorne
34 October 23, 2024 GASBS 75
■
■
■
■ Total Deferred (Inflows) (38,072,596) (59,066) 4,787,982 (33,343,680) Differences between projected and actual
earnings on plan investments (59,066) - - (59,066)
Differences between actual and expected
experience $ - (11,353,911) $ 4,110,219 $ (7,243,692) $ Change in assumptions - (26,718,685) 677,763 (26,040,922) Reconciliation of Deferred Inflows
Deferred Inflows
Opening
Balance -
(Credit)
Journal
Entry-
(Credit)
Journal
Entry -
Debit
Ending
Balance -
(Credit)
Detail for page 32
Journal Entries
City of Hawthorne
35 October 23, 2024 GASBS 75
■ Total OPEB (Liability)
■ Fiduciary Net Position
■ Net OPEB (Liability)/Asset
■ Deferred (inflows) of resources
■ Deferred outflows of resources
■ Balance Sheet Impact
Deferred Outflows include contributions after the measurement date.

Summary of Balances
(116,163,078) (117,810,078)
(100,619,074) (100,714,992)
(33,343,680) (38,072,596)
17,799,676 20,977,510
6/30/22 6/30/23
$ (104,312,362) (100,714,992) $
- 3,693,288
Fiscal Year Ended
6/30/23 6/30/24
Measurement Date Measurement Date
Reconciliation of Deferred Outflows/(Inflows)
Journal Entries
City of Hawthorne
36 October 23, 2024 GASBS 75

CITY OF HAWTHORNE

RETIREE HEALTHCARE PLAN
June 30, 2023 OPEB Actuarial Valuation

Doug Pryor, ASA, EA, MAAA
Katherine Moore, ASA, MAAA
Matthew Childs
Foster & Foster, Inc.

October 23, 2024
Contents
l:\hawthornecity\opeb\2023\reports\f&f_hawthornecity_24-10-23_opeb_23-06-30_valuation_report.docx Topic Page
Benefit Summary 1
Implicit Subsidy 3
Data Summary 5
Actuarial Assumptions Highlights 7
Actuarial Methods 12
Assets 13
Results 15
Actuarial Certification 26
Exhibits
Premiums E - 1
Participant Statistics E - 4
Actuarial Assumptions E - 12
Definitions E - 18

October 23, 2024 1

BENEFIT SUMMARY
 Eligibility  Retire directly from the City under CalPERS1 (age 502
and 5 years of service or disability)
 Medical
Benefit3
 Miscellaneous
City pays single premium
 Police
City pays full premium less:

Coverage Retiree Contribution
Single None
2-Party $14.15/month
Family $23.99/month
 PEMHCA
Administrative
Fee
 0.24% of retiree premium for 2024/25
 Paid by City
 Surviving
Spouse Benefit
 Surviving spouse coverage continues based on CalPERS
retirement plan election
 Other OPEB  No City-paid dental, vision, Medicare Part B or life 1 Police: Age 50 and 20 years of service or disability per MOU 2 52 for Miscellaneous PEPRA members
3 City contributes single premium for 17 Fire retirees. Current retired Council members receiving full premium.

October 23, 2024 2

BENEFIT SUMMARY
 Pay-as-you-go
Costs4
(in $000’s)
4 Amounts before 2016/17 from City’s Annual Financial Reports.

October 23, 2024 3

IMPLICIT SUBSIDY
 For PEMHCA, employer cost for allowing retirees to participate at active rates.  General trend:
 Sample active age 40, retire age 60:

Premiums PEMHCA Cost of Benefits
$1,000 Active
$2,000
$400 Active
$1,000 Retiree $1,600 Retiree
25 30 35 40 45 50 55 60 64
Cost by Age 400 600 700 700 800 1,000 1,200 1,300 1,600 Premium 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 $-
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
← Under 50
Over 50 →

October 23, 2024 4

IMPLICIT SUBSIDY
 GASB defers to actuarial standards of practice.
 Actuarial Standards of Practice No. 65 (ASOP 6), released in May 2014:
 Requires implicit subsidy valued for community rated plans such as PEMHCA.  Effective with all valuations on or after March 31, 2015  The June 30, 2015 and later valuations include the implicit subsidy 5 Measuring Retiree Group Benefits Obligations and Determining Retiree Group Benefits Plan Costs or Contributions.

October 23, 2024 5

DATA SUMMARY
Actives
6/1/13 6/30/156 6/30/17 6/30/19 6/30/21 6/30/23
 Participants
• Miscellaneous 149 192 173 167 179 178
• Safety 94 97 94 89 87 82
• Total 243 289 267 256 266 260
 Average
• Age n/a 43.3 43.6 43.4 42.4 42.5
• City Service n/a 11.7 12.2 12.2 11.2 11.3
• Salary n/a $ 70,600 $ 73,600 $ 74,400 $ 86,8007 $ 91,4008  Total Salary (000’s) n/a 20,404 19,643 19,034 23,093 23,752 6 Data as of March 2015.
7 Salaries for 2020/21 estimated from City’s 2020 CalPERS actuarial valuation reports. 8 Salaries for 2022/23 estimated from City’s 2022 CalPERS actuarial valuation reports.

October 23, 2024 6

DATA SUMMARY
Retirees
6/1/13 6/30/159 6/30/17 6/30/19 6/30/21 6/30/23
 Participants (benefitting)
• Miscellaneous 145 138 140 143 149 137
• Safety 114 113 112 121 123 125
• Total10 259 251 252 264 272 262
 Average
• Age n/a 70.0 68.8 68.9 69.8 70.3
• Service Retirement Age
 Miscellaneous n/a 58.5 58.1 58.0 58.3 58.4
 Safety n/a 54.5 53.5 53.2 53.6 53.7
9 Data as of March 2015.
10 Excludes 55, 75, 59, 59 & 61 waived participants at 6/30/15, 6/30/17, 6/30/19, 6/30/21 & 6/30/23, respectively.

October 23, 2024 7

ACTUARIAL ASSUMPTIONS HIGHLIGHTS
PARS Fund Options11
Conservative
Moderately
Conservative Moderate Balanced
Capital
Appreciation
 Target Allocation
• Equity 15% 30% 50% 60% 75%
• Fixed Income 80% 65% 45% 35% 20%
• Cash 5% 5% 5% 5% 5%
• Total 100% 100% 100% 100% 100%
 Median Return 4.00% 4.50% 5.50% 5.75% 6.25%
 Discount RateConfidence Level
• 50% 4.00% 4.50% 5.50% 5.75% 6.25%
• 55% 3.75% 4.50% 5.25% 5.50% 6.00%
• 60% 3.75% 4.25% 5.00% 5.25% 5.50%

11 City established a trust in the PARS Balanced Strategy in April 2022.

October 23, 2024 8

ACTUARIAL ASSUMPTIONS HIGHLIGHTS
June 30, 2021 Valuation June 30, 2023 Valuation
 Valuation Date  June 30, 2021
 2021/22 & 2022/23 GASBS 75
(separate report)
 June 30, 2023
 2023/24, 2024/25, and 2025/26
ADC fiscal years
 2023/24 & 2024/25 GASBS 75
(separate report)
 Funding Policy  Pay-as-you-go  Ad-hoc contributions to trust  Discount Rate  2.16% Bond Buyer 20-Bond
GO Index at June 30, 2021
(GASBS 75 specified)
 Not prefunded; assets in
General Investment Fund
 Prefunding illustrated at 5.75%
 5.75% return PARS Balanced
strategy
 GASBS 75 discount rate will
differ
 General
Inflation
 2.50%  Same
 Mortality,
Withdrawal &
Disability
 CalPERS 2000-2019
Experience Study
 Mortality improvement
projection MP-2021
 Same

October 23, 2024 9

ACTUARIAL ASSUMPTIONS HIGHLIGHTS
June 30, 2021 Valuation June 30, 2023 Valuation
 Healthcare
Trend
Increase from Prior Year12
Medicare
Year Non-Medicare Kaiser Other
2021 Actual Premiums
2022 Actual Premiums
2023 6.50% 4.60% 5.65%
2024 6.25% 4.45% 5.45%
↓ ↓ ↓ ↓
2030 4.95% 4.05% 4.45%
31-35 4.80% 4.00% 4.35%
36-45 4.65% 3.95% 4.25%
46-55 4.50% 3.90% 4.20%
56-65 4.35% 3.85% 4.15%
66-75 4.05% 3.80% 3.95%
2076+ 3.75% 3.75% 3.75%
Increase from Prior Year
Medicare
Year Non-Medicare Kaiser Other
2021 n/a
2022 n/a
2023 Actual Premiums
2024 Actual Premiums
2025 Actual Premiums
2026 7.90% 5.65% 6.90%
2027 7.35% 5.45% 6.50%
2028 6.75% 5.25% 6.10%
2029 6.20% 5.05% 5.70%
2030 5.60% 4.85% 5.25%
2031 5.05% 4.65% 4.85%
32-38 4.45% 4.45% 4.45%
39-40 4.35% 4.35% 4.35%
2041 4.30% 4.30% 4.30%
↓ ↓ ↓ ↓
2076+ 3.45% 3.45% 3.45%
12 Medical premiums after 2022 and estimated claims after 2021 do not take into account buy-downs (CalPERS subsidizations of premium rates from the reserves).

October 23, 2024 10

ACTUARIAL ASSUMPTIONS HIGHLIGHTS
June 30, 2021 Valuation June 30, 2023 Valuation
 Retirement  CalPERS 2000-2019
Experience Study:

Misc Police
Benefit 3%@60 3%@50
ERA 60.8 53.8
Benefit 2%@62 2.7%@57
ERA 61.8 55.9
 CalPERS 2000-2019 Experience
Study:

Misc Police
Benefit 3%@60 3%@50
ERA 60.7 53.9
Benefit 2%@62 2.7%@57
ERA 61.8 55.9
 Aggregate
Payroll Increase
 2.75%  Same
 Salary Merit
and Longevity
Increases
 CalPERS 2000-2019
Experience Study
 Same
 Age-related
Claims Costs
for Medicare
Advantage
Plans
 Due to age-risk adjusted
federal subsidies, no age-based
claims costs were included for
Medicare Advantage plans
 Same

October 23, 2024 11

ACTUARIAL ASSUMPTIONS HIGHLIGHTS
June 30, 2021 Valuation June 30, 2023 Valuation
 Participation at
Retirement
 Actives: 95%
 Retirees:
• Covered – 100%
• Waived – 5% Re-elect
at age 65
 Same
 Dependents at
Retirement
 Safety Actives: 45% until age
65  Safety Retirees: Based on
current coverage election
 Same
 Data
Adjustments
 Data based on CalPERS OPEB
data extract with additional
information provided by City
 Pay estimated from 6/30/20
CalPERS valuation reports
 Data based on CalPERS OPEB
data extract.
 Pay estimated from 6/30/22
CalPERS valuation reports

October 23, 2024 12

ACTUARIAL METHODS
June 30, 2021 Valuation June 30, 2023 Valuation
 Cost Method  Entry Age Normal  Same
 Amortization
Method
 Level Percent of Payroll  Same
 Actuarial Value of
Assets
 No Plan assets  Market Value of Assets
 Amortization
Periods
 Sensitivity: 6/30/21 unfunded
liability amortized over closed
20 years for 2021/22
 Contribution gains/losses
amortized over closed 20
years
 6/30/23 unfunded liability
amortized over closed 18
years for 2023/24

October 23, 2024 13
ASSETS
Market Value of Plan Assets
(amounts in 000’s)
2022/23 2023/24
Market Value
(beginning of year) $ - $3,693
• Contribution 3,500 1,000
• Benefit Payments - -
• Administrative Expenses (5) (10)
• Investment Return 198 513
Market Value
(end of year) 3,693 5,197
Approximate Return 9.2% 11.5%

October 23, 2024 14
ASSETS
Historical Asset Changes
(amounts in 000’s)

October 23, 2024 15

RESULTS
Actuarial Obligations
(amounts in 000’s)
6/30/21 6/30/23

2.16% 5.75% 5.75%
 Present Value of Benefits
• Actives $103,630 $40,510 $ 48,889
• Retirees 78,735 48,661 57,338
• Total 182,365 89,171 106,227
 Actuarial Accrued Liability
• Actives 43,094 22,736 27,994
• Retirees 78,735 48,661 57,338
• Total 121,829 71,397 85,332
 Assets - - 3,693
 Unfunded Liability 121,829 71,397 81,639
 Funded Ratio 0.0% 0.0% 4.3%

October 23, 2024 16

RESULTS
Actuarial Accrued Liability
(amounts in 000’s)

October 23, 2024 17

RESULTS
Estimated Actuarial Gain/Loss Analysis

5.75% Discount Rate
(amounts in 000’s)
AAL Assets UAAL
 Actual @ 6/30/21 $71,397 $ - $71,397
 Expected @ 6/30/23 76,958 7,319 69,639
 Changes
• Premiums larger than expected 6,968 - 6,968
• Updated medical trend 3,687 - 3,687
• Contribution loss - (3,702) 3,702
• Investment gain - 75 (75)
• Demographic & other (2,281) - (2,281)
• Total 8,374 (3,626) 12,000
 Actual @ 6/30/23 85,332 3,693 81,639

October 23, 2024 18

RESULTS
Actuarially Determined Contribution (ADC)
(amounts in 000’s)
6/30/2021 Val 6/30/2023 Val
2021/22 2022/23 2023/24 2024/25 2025/26
 ADC - $
• Normal Cost $1,915 $1,968 $2,273 $2,335 $2,399
• Admin. Expenses 7 7 17 28 38
• UAAL Amortization 4,894 5,029 6,058 6,220 6,391
• Total ADC 6,817 7,004 8,347 8,583 8,828
 Projected Payroll 23,728 24,381 24,405 25,076 25,766
 ADC - %
• Normal Cost 8.1% 8.1% 9.3% 9.3% 9.3%
• Admin. Expenses 0.0% 0.0% 0.1% 0.1% 0.1%
• UAAL Amortization 20.6% 20.6% 24.8% 24.8% 24.8%
• Total ADC 28.7% 28.7% 34.2% 34.2% 34.2%

October 23, 2024 19

RESULTS
Amortization Bases
(amounts in 000’s)
6/30/2021 Val 6/30/2023 Val
6/30/21 6/30/22 6/30/23 6/30/24 6/30/25
 Initial UAAL $71,397 $70,608 $69,639 $68,476 $67,104
 (Gain)/Loss
• 2023 valuation - - 12,000 11,739 11,504
 Total 71,397 70,608 81,639 80,215 78,607

October 23, 2024 20

RESULTS
Amortization Payments
(amounts in 000’s)
6/30/2021 Val 6/30/2023 Val
2021/22 2022/23 2023/24 2024/25 2025/26
 Initial UAAL $4,894 $5,029 $5,167 $5,309 $5,455
 (Gain)/Loss
• 2023 valuation - - 890 910 935
 Total 4,894 5,029 6,058 6,220 6,391
 Amortization years 20 19 18 17 16

October 23, 2024 21

RESULTS
Projection
(amounts in 000’s)
Fiscal
Year Cash13
Implicit
Subsidy
PEMHCA
Admin
Fees
Additional
Pre-Funding Total Payroll
Contr. % of
Payroll
2023/24 $2,825 $ 442 $ 9 $5,071 $ 8,347 $24,405 34.2%
2024/25 3,139 591 10 4,843 8,583 25,076 34.2%
2025/26 3,497 649 11 4,671 8,828 25,766 34.3%
2026/27 3,790 726 12 4,549 9,077 26,474 34.3%
2027/28 4,067 761 13 4,490 9,331 27,203 34.3%
2028/29 4,390 848 14 4,341 9,593 27,951 34.3%
2029/30 4,665 912 14 4,272 9,863 28,719 34.3%
2030/31 4,921 990 15 4,213 10,139 29,509 34.4%
2031/32 5,169 1,078 16 4,160 10,423 30,321 34.4%
2032/33 5,301 1,074 16 4,321 10,712 31,154 34.4%

13 Includes PEMHCA administrative expenses.

October 23, 2024 22

RESULTS
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October 23, 2024 23

RESULTS
Actuarial Obligations by Cash and Implicit Subsidy
June 30, 2023
(amounts in 000’s)
Cash
Subsidy
Implicit
Subsidy Total
 Present Value of Benefits
• Actives $43,582 $ 5,307 $ 48,889
• Retirees 47,317 10,021 57,338
• Total 90,899 15,328 106,227
 Actuarial Accrued Liability
• Actives 24,643 3,350 27,994
• Retirees 47,317 10,021 57,338
• Total 71,960 13,371 85,332
 Actuarial Value of Assets 3,114 579 3,693
 Unfunded AAL 68,846 12,792 81,639
 2023/24 Normal Cost 2,061 212 2,273
 2023/24 Pay-As-You-Go Cost 2,825 442 3,267

October 23, 2024 24

RESULTS
Actuarially Determined Contribution (ADC) – Fiscal Year 2023/24 (amounts in 000’s)
Cash
Subsidy
Implicit
Subsidy Total
 ADC - $
• Normal Cost $2,061 $ 212 $2,273
• Administrative Expenses 17 - 17
• UAAL Amortization 5,108 949 6,058
• Total 7,186 1,161 8,347
 Projected Payroll 25,076 25,076 25,076
 ADC - %
• Normal Cost 8.4% 0.9% 9.3%
• Administrative Expenses 0.1% 0.0% 0.1%
• UAAL Amortization 20.9% 3.9% 24.8%
• Total 29.4% 4.8% 34.2%

October 23, 2024 25

RESULTS
Discount Rate Sensitivity
(amounts in 000’s)
Discount Rate

5.75% 3.65%
 Present Value of Benefits $106,227 $155,794
 Funded Status
• Actuarial Accrued Liability 85,332 114,287
• Actuarial Value of Assets 3,693 3,693
• Unfunded Actuarial Accrued Liability 81,639 110,594
 2023/24 ADC - $
• Normal Cost14 2,289 3,747
• UAAL Amortization15 6,058 6,851
• Total 8,347 10,598
14 Includes $17,000 in PEMHCA and CERBT administrative expenses. 15 18-year amortization.

October 23, 2024 26

ACTUARIAL CERTIFICATION
This report presents the City of Hawthorne Retiree Healthcare Plan (“Plan”) June 30, 2023 actuarial valuation. The purpose of this valuation is to:
 Determine the Plan’s June 30, 2023 Funded Status, and  Calculate 2023/24, 2024/25, and 2025/26 Actuarially Determined Contributions.

Information provided in this report may be useful to the City for the Plan’s financial management. Future actuarial measurements may differ significantly from the current measurements presented in this report due to such factors as: plan experience differing from that anticipated by the assumptions; changes in assumptions; changes expected as part of the natural progression of the plan; and changes in plan provisions or applicable law. Actuarial models necessarily rely on the use of estimates and are sensitive to changes. Small variations in estimates may lead to significant changes in actuarial measurements. Due to the limited scope of this assignment, we did not perform an analysis of the potential range of such measurements.

The valuation is based on Plan provisions, participant data, and asset information provided by the City as summarized in this report, which we relied on and did not audit. We reviewed the participant data for reasonableness.

To the best of our knowledge, this report is complete and accurate and has been conducted using generally accepted actuarial principles and practices. As members of the American Academy of Actuaries meeting the Academy Qualification Standards, we certify the actuarial results and opinions herein.

Respectfully submitted,

Doug Pryor, ASA, EA, MAAA
Foster & Foster, Inc.

October 23, 2024
Katherine Moore, ASA, MAAA
Foster & Foster, Inc.

October 23, 2024

October 23, 2024 E-1

PREMIUMS
2023 PEMHCA Monthly Premiums
Region 3
Non-Medicare Eligible Medicare Eligible
Medical Plan Single 2-Party Family Single 2-Party Family Anthem HMO Select $737.91 $1,475.82 $1,918.57 $413.59 $827.18 $1,240.77 Anthem HMO Traditional 942.73 1,885.46 2,451.10 413.59 827.18 1,240.77 Blue Shield Access+ 738.29 1,476.58 1,919.55 361.90 723.80 1,085.70 Blue Shield Trio 661.49 1,322.98 1,719.87 361.90 723.80 1,085.70 Health Net Salud y Más 606.34 1,212.68 1,576.48 n/a n/a n/a Health Net SmartCare 755.29 1,510.58 1,963.75 n/a n/a n/a Kaiser Permanente 754.64 1,509.28 1,962.06 n/a n/a n/a
Kaiser Senior Advantage n/a n/a n/a 283.25 566.50 849.75 Kaiser SA Summit n/a n/a n/a 336.29 672.58 1,008.87
UnitedHealthcare Alliance 790.46 1,580.92 2,055.20 n/a n/a n/a UnitedHealthcare Harmony 713.55 1,427.10 1,855.23 n/a n/a n/a UnitedHealthcare Group n/a n/a n/a 299.68 599.36 899.04 UnitedHealthcare Edge n/a n/a n/a 357.70 715.40 1,073.10 PERS Platinum 992.59 1,985.18 2,580.73 420.02 840.04 1,260.06 PERS Gold 680.37 1,360.74 1,768.96 392.71 785.42 1,178.13 PORAC 820.00 1,600.00 2,100.00 465.00 1,030.00 1,395.00

October 23, 2024 E-2

PREMIUMS
2024 PEMHCA Monthly Premiums
Region 3
Non-Medicare Eligible Medicare Eligible
Medical Plan Single 2-Party Family Single 2-Party Family Anthem HMO Select $ 841.13 $1,682.26 $2,186.94 $405.83 $ 811.66 $1,217.49 Anthem HMO Traditional 1,012.67 2,025.34 2,632.94 405.83 811.66 1,217.49 Blue Shield Access+ 756.65 1,513.30 1,967.29 392.68 785.36 1,178.04 Blue Shield Trio 704.69 1,409.38 1,832.19 392.68 785.36 1,178.04 Health Net Salud y Más 630.13 1,260.26 1,638.34 n/a n/a n/a Kaiser Permanente 865.41 1,730.82 2,250.07 n/a n/a n/a
Kaiser Senior Advantage n/a n/a n/a 324.79 649.58 974.37 Kaiser SA Summit n/a n/a n/a 386.55 773.10 1,159.65
UnitedHealthcare Alliance 826.44 1,652.88 2,148.74 n/a n/a n/a UnitedHealthcare Harmony 734.76 1,469.52 1,910.38 n/a n/a n/a UnitedHealthcare Group n/a n/a n/a 341.72 683.44 1,025.16 UnitedHealthcare Edge n/a n/a n/a 366.01 732.02 1,098.03 PERS Platinum 1,131.47 2,262.94 2,941.82 448.15 896.30 1,344.45 PERS Gold 785.28 1,570.56 2,041.73 406.60 813.20 1,219.80 PORAC 926.00 1,863.00 2,371.00 465.00 1,030.00 1,395.00

October 23, 2024 E-3

PREMIUMS
2025 PEMHCA Monthly Premiums
Region 3
Non-Medicare Eligible Medicare Eligible
Medical Plan Single 2-Party Family Single 2-Party Family Anthem HMO Select $ 916.88 $1,833.76 $2,383.89 $ 487.56 $ 975.12 $1,462.68 Anthem HMO Traditional 1,065.46 2,130.92 2,770.20 487.56 975.12 1,462.68 Blue Shield Access+ 828.48 1,656.96 2,154.05 448.28 896.56 1,344.84 Blue Shield Trio 738.11 1,476.22 1,919.09 448.28 896.56 1,344.84 Health Net Salud y Más 714.40 1,428.80 1,857.44 n/a n/a n/a Kaiser Permanente 926.52 1,853.04 2,408.95 n/a n/a n/a
Kaiser Senior Advantage n/a n/a n/a 343.08 686.16 1,029.24 Kaiser SA Summit n/a n/a n/a 408.31 816.62 1,224.93
UnitedHealthcare Alliance 866.40 1,732.80 2,252.64 n/a n/a n/a UnitedHealthcare Harmony 756.28 1,512.56 1,966.33 n/a n/a n/a UnitedHealthcare Group n/a n/a n/a 442.25 884.50 1,326.75 PERS Platinum 1,263.73 2,527.46 3,285.70 584.70 1,169.40 1,754.10 PERS Gold 868.15 1,736.30 2,257.19 546.13 1,092.26 1,638.39 PORAC 970.00 1,951.00 2,484.00 507.00 1,123.00 1,521.00

October 23, 2024 E-4

PARTICIPANT STATISTICS
Medical Plan Participation
Retirees
Plan Actives Pre-65 Post-65 Total
Anthem Select 3% 0% 0% 0%
Anthem Traditional 9% 2% 3% 3%
Blue Shield Access+ 18% 22% 1% 8%
Blue Shield Trio 1% 0% 0% 0%
Health Net SmartCare 0% 0% 0% 0%
Health Net Salud y Mas 0% 0% 0% 0%
Kaiser 30% 7% 10% 10%
Sharp 0% 0% 1% 0%
UnitedHealthcare 1% 0% 12% 8%
PERS Platinum 24% 36% 57% 50%
PERS Gold 0% 1% 0% 0%
PORAC 13% 31% 16% 21%
Total 100% 100% 100% 100%

October 23, 2024 E-5

PARTICIPANT STATISTICS
Current Active Medical Plan Coverage
Plan Single 2-Party Family Waived Total
Anthem Select 4 2 - - 6
Anthem Traditional 14 3 2 - 19
Blue Shield Access+ 21 4 13 - 38
Blue Shield Trio 1 - 1 - 2
Health Net SmartCare 1 - - - 1
Health Net Salud y Mas 1 - - - 1
Kaiser 44 10 11 - 65
UnitedHealthcare 2 - - - 2
PERS Platinum 33 7 12 - 52
PERS Gold 1 - - - 1
PORAC 7 7 14 - 28
Waived - - - 45 45
Total 129 33 53 45 260

October 23, 2024 E-6

PARTICIPANT STATISTICS
Retiree Medical Plan Coverage
Pre 65
Plan Single 2-Party Family Waived Total
Anthem Traditional 2 - - - 2
Blue Shield Access+ 8 4 6 - 18
Kaiser 3 1 2 - 6
UnitedHealthcare - - - - -
PERS Platinum 17 5 7 - 29
PERS Gold 1 - - - 1
PORAC 4 7 14 - 25
Waived - - - 3 3
Total 35 17 29 3 84

October 23, 2024 E-7

PARTICIPANT STATISTICS
Retiree Medical Plan Coverage
Post 65
Plan Single 2-Party Family Waived Total
Anthem Traditional 4 2 - - 6
Blue Shield Access+ 1 1 - - 2
Kaiser 16 3 - - 19
Sharp - 1 - - 1
UnitedHealthcare 13 8 - - 21
PERS Platinum 70 30 3 - 103
PERS Gold - - - - -
PORAC 12 17 - - 29
Waived - - - 58 58
Total 116 62 3 58 239

October 23, 2024 E-8

PARTICIPANT STATISTICS
Actives by Age and Service
Miscellaneous
City Service
Age < 1 1-4 5-9 10-14 15-19 20-24 ≥ 25 Total
< 25 6 5 - - - - - 11
25-29 5 12 7 - - - - 24
30-34 4 9 6 2 - - - 21
35-39 4 5 4 4 3 - - 20
40-44 1 6 1 6 3 2 - 19
45-49 1 5 3 3 3 8 2 25
50-54 4 3 1 4 7 3 3 25
55-59 1 - 3 2 2 2 4 14
60-64 - 1 2 2 2 2 3 12
≥ 65 1 - 1 2 - 2 1 7
Total 27 46 28 25 20 19 13 178

October 23, 2024 E-9

PARTICIPANT STATISTICS
Actives by Age and Service
Safety
City Service
Age < 1 1-4 5-9 10-14 15-19 20-24 ≥ 25 Total
< 25 - 1 - - - - - 1
25-29 - 5 4 - - - - 9
30-34 - 3 8 3 - - - 14
35-39 - 1 3 6 3 - - 13
40-44 1 - 1 1 6 3 - 12
45-49 - - 1 3 4 10 1 19
50-54 - 1 - 2 - 4 3 10
55-59 - - 1 - - - 2 3
60-64 - - - - - - 1 1
≥ 65 - - - - - - - -
Total 1 11 18 15 13 17 7 82

October 23, 2024 E-10

PARTICIPANT STATISTICS
Retirees Medical Plan Coverage by Age
Miscellaneous
Medical Coverage
Age Single 2-Party Family Waived Total
Under 50 - - - - -
50-54 2 - - 1 3
55-59 3 1 2 - 6
60-64 19 5 - 1 25
65-69 24 7 1 10 42
70-74 18 10 - 8 36
75-79 15 2 - 11 28
80-84 9 2 - 4 15
85 & Over 14 2 1 7 24
Total 104 29 4 42 179
Average Age 72.7 71.5 67.4 75.9 73.1

October 23, 2024 E-11

PARTICIPANT STATISTICS
Retirees Medical Plan Coverage by Age
Safety
Medical Coverage
Age Single 2-Party Family Waived Total
Under 50 - - 5 - 5
50-54 1 4 8 - 13
55-59 4 2 13 1 20
60-64 6 5 1 - 12
65-69 8 13 1 - 22
70-74 5 7 - 5 17
75-79 7 7 - 7 21
80-84 11 8 - 3 22
85 & Over 5 4 - 3 12
Total 47 50 28 19 144
Average Age 73.5 71.1 54.0 78.5 69.5

October 23, 2024 E-12

ACTUARIAL ASSUMPTIONS
June 30, 2021 Valuation June 30, 2023 Valuation
 Spouses  Actives:
• Currently covered: current
marital status
• Currently waived – Safety:
80% married
• Currently waived – Misc:
20% married
 Retirees: based on current
coverage
 Same
 Medical Plan at
Retirement
 Currently covered: same as
current elections
 Currently waived: PERS
Platinum Region 3
 Same
 Retiree
Contribution
Increases
(Police only)
 No future increases assumed in
retiree contributions
($0/$14.15/$23.99 for
single/2-party/family coverage)
 Same

October 23, 2024 E-13

ACTUARIAL ASSUMPTIONS
June 30, 2021 Valuation June 30, 2023 Valuation
 Spouse Age  Males 3 years older than
females if spouse birth date not
provided
 Same
 Medicare
Eligible Rate
 Actives:
• Hired < 4/1/1986: 90%
• Hired > 4/1/1986:100%
 Retirees < 65:
• 95%
 Everyone eligible for Medicare
will elect Part B coverage
 Same
 PEMHCA
Administrative
Fees
 Percent of premium added to
Normal Cost: 0.25% of
premium for 2021/22 and later
years
 Percent of premium added to
Normal Cost: 0.30% of
premium for 2023/24 and later
years (5-year average)

October 23, 2024 E-14

ACTUARIAL ASSUMPTIONS
June 30, 2023 Valuation
 HMO Medical
Claims Costs
2024
PEMHCA
Implicit
Subsidy
Estimate
 Sample estimated monthly claims costs
Region 3 - Non-Medicare Eligible
BS Access+ Kaiser UnitedHealthcare
Age M F M F M F
25 $275 $453 $314 $519 $300 $495
35 361 635 413 726 394 693
45 515 687 590 786 563 750
55 811 886 927 1,013 885 968
60 1,020 1,026 1,166 1,174 1,114 1,121
65 1,263 1,209 1,444 1,383 1,379 1,321
70 1,420 1,355 1,625 1,550 1,551 1,480
75 1,598 1,521 1,828 1,739 1,746 1,661
80 1,843 1,739 2,108 1,989 2,013 1,899

October 23, 2024 E-15

ACTUARIAL ASSUMPTIONS
June 30, 2023 Valuation
 PPO Medical
Claims Costs
2024
PEMHCA
Implicit
Subsidy
Estimate
 Sample estimated monthly claims costs
Region 3 - NonMedicare Eligible
PERS Platinum PERS Gold PORAC
Age M F M F M F
25 $357 $582 $314 $511 $324 $539
35 466 810 409 710 428 757
45 660 876 579 767 614 820
55 1,031 1,126 903 986 968 1,059
60 1,294 1,302 1,133 1,141 1,220 1,228
65 1,599 1,532 1,401 1,342 1,512 1,448
70 1,772 1,691 1,552 1,481 1,745 1,664
75 1,973 1,878 1,728 1,645 1,999 1,901
80 2,273 2,145 1,990 1,879 2,306 2,175
Region 3 - Medicare Eligible
PERS Platinum PERS Gold PORAC
Age M F M F M F
65 $447 $428 $370 $354 $408 $391
70 484 463 401 384 442 423
75 516 495 427 410 471 452
80 532 514 440 425 486 469

October 23, 2024 E-16

ACTUARIAL ASSUMPTIONS
June 30, 2023 Valuation
 Basis for
Assumptions
 No experience study performed for this Plan
 CalPERS 2000-2019 experience study was used
 Mortality improvement based on Society of Actuaries table  Inflation based on the Plan’s very long time horizon
 Medical trends based on expectations over short term blended into long term trends using the Society of Actuaries Getzen Model  Age-based claims costs based on demographic data provided by CalPERS and Society of Actuaries studies
 Participation and coverage based in part on Plan experience  Capital market assumptions based on 2021 Foster & Foster stochastic analysis, taking into account capital market assumptions of investment advisory firms
 Actuarial
Modeling
 Valuation prepared using ProVal, an actuarial model leased from WinTech. Use of ProVal is consistent with its intended purpose. We reviewed and understand ProVal and its operation.
 Data Quality  Our valuation used census data provided by the City and CalPERS OPEB data extract. We reviewed the data for reasonableness and resolved any questions with the City. We believe the resulting data can be relied on for all purposes of this valuation.

October 23, 2024 E-17

DEFINITIONS
Present Value of Benefits
(PVB)
PVB - Present Value of all Benefits
 Discounted value, at measurement date (valuation date) of all future expected benefit payments
 Expected benefit payments based on various actuarial assumptions

October 23, 2024 E-18

DEFINITIONS
 AAL – Actuarial Accrued Liability / Actuarial Obligation  Discounted value at measurement date (valuation date) of benefits “earned” through measurement date based on actuarial cost method
 Portion of PVB “earned” at measurement
 NC - Normal Cost
 Value of benefits “earned” during current year
 Portion of PVB allocated to current year
 Actuarial Cost Method
 Determines how benefits are “earned” or allocated to each year of service  Has no effect on PVB
 Has significant effect on Actuarial Obligations and Normal Cost  Pay-As-You-Go Cost (PayGo)
 Cash Subsidy – Actual cash benefit payments to retirees  Implicit Subsidy – Difference between cost of retiree benefits and retiree premiums  PayGo is the expected retiree benefit payments for the year while Normal Cost is the cost of benefits accrued by active employees during the year.

AGENDA ITEM NO. 9.

CITY OF HAWTHORNE
City Council

AGENDA BILL
For the meeting of 01/28/2025
Originating Department: Housing
City Manager: Department Head:

SUBJECT:

Publicly receive, open, declare sealed request for bids and award of Section 3 Contract for the Community Development Block Grant (CDBG) funded Hawthorne Crenshaw Village Commercial Rehabilitation Project #CRP-2401.

RECOMMENDED MOTION:

Staff recommends that the City Council publicly receive, open, declare sealed request for bids and award the Section 3 Contract to the lowest responsive and responsible bidder, Dan Contractor of Riverside, CA.

DISCUSSION:

The City's Commercial Rehabilitation Program (CRP) was authorized by the City Council on July 23, 2021. After an application process, design phase, and Planning Commission approval, the staff publicly advertised the Crenshaw Village CRP with a due date of December 20, 2024. The City received three bids with each accompanied by bid bonds. After a thorough review of the proposal, reference checks, and verification of the contractor's license, staff determined that Dan Contractor of Riverside, CA. was the lowest responsive and responsible bidder.

This project consists of demolition, structure installation, storefront windows, electrical, lath and plaster, VICWEST wall siding system, metal wall cap, storefront door and window repairs, scissor gates or roll-up gates, exterior paint, exterior lighting, address identifiers, channel letter signs, concrete planter box removal, and all other work necessary to complete the improvements in accordance with the Plans and Specifications.

ECONOMIC DEVELOPMENT STRATEGIC PLAN:

None.

FISCAL IMPACT:

None. The approximate cost of $319,200 will be funded through the allocated and approved CDBG Funds.

NOTICING PROCEDURE:
72 hours posted notice pursuant to the Ralph M. Brown Act

ATTACHMENTS
Bid List

AGENDA ITEM NO. 10.

CITY OF HAWTHORNE
City Council

AGENDA BILL
For the meeting of 01/28/2025
Originating Department: Finance
City Manager: Department Head:

SUBJECT:

American Rescue Plan Act (ARPA) Update and request for approval of recommendation RECOMMENDED MOTION:

Staff recommends that the City Council provide approval of the reallocation recommendation and receive and file the ARPA Economic Development Plan Programs update.

DISCUSSION:

At the July 13, 2021, City Council meeting, staff and HdL Companies' Principal, Barry Foster, gave an overview of the agenda staff report, introducing the American Rescue Plan Act (ARPA). The report also described that local governments are encouraged to use payments from ARPA to respond to the direct and immediate needs of the pandemic and its negative economic impacts and the needs of households and businesses that are disproportionately and negatively impacted by the public health emergency.

Included in the report to the City Council were several economic development ideas for programs and projects for ARPA funding.

In subsequent meetings, the Council adopted an ARPA Plan, which outlined various projects and programs for expenditures of the 1st Tranche of ARPA funds $15,260,827. At the February 28, 2023, City Council meeting, staff and HDL Sr. Advisor Ken Duran, presented to the City Council a list of projects utilizing the 2nd tranche of American Rescue Plan Act (ARPA) funds $15,260,827.

The ARPA Guidelines required that funds must be obligated to specific projects by December 31, 2024, and must be spent by December 31, 2026. Under the SLFRF Frequently Asked Questions 17.16 section, however, if a contract entered into by December 31, 2024, expressly provides for change orders or contract contingencies, the recipient may use SLFRF funds to cover increased costs attributable to such change orders or contract contingencies. Such increased costs are not considered new obligations but are instead attributable to a preexisting obligation to accommodate the change or contingency. Staff has evaluated the programs approved under the adopted ARPA Plan for Tranches 1 and 2; and are requesting reallocation of funds to the existing Hawthorne Housing Revitalization program. The Interagency Agreement with the Housing Division allows for increased cost contingencies.

The following outlines the Programs approved by the Council and the reallocation request for use of American Rescue Plan Act (ARPA) funds.

1. Hero Pay for essential workers $ 883,000

2. Vital Medical -- Mental Health Clinician - Emgcy Calls for PD $ 100,000

3. Bi Polar Ionization System for PD $ 29,540

4. Air Filtration w/UV Sterilization module in Basement $ 75,000

5. Personal Protective Equipment & Training $ 0

6. Emergency Kits for City Hall and PD $ 7,145

7. Sanitation $ 360,000

8. Energov Virtual City Hall Project $ 737,510

9. Revitalization of City Properties $ 599,430

10. Communication Upgrades $ 150,000

11. Virtual Electronic Document Migration $ 500,000

12. Virtual Desktop Interface $ 700,000

13. Fire Contract $ 3,900,000

14. Police Salaries $ 2,815,610

15. Public Works Salaries $ 200,000

16. Community Service Salaries $ 300,000

17. Homeless Coordination $ 88,384
Total Approved Projects Designated for General Fund $11,445,620 Designated General Fund Revenue Recovery Approved Uses -- ARPA 1st Tranche

APPROVED USES
$11,445,620 Revenue Recovery
ARPA 1st Tranche Recovery Program Approved Uses & Add'l Recommendations

APPROVED USES
$ 3,815,207 Designated for Recovery projects

1. Telehealth Van LLC Services $1,261,630.00

2. Homelessness -- Pallet Shelters $1,664,180.10

3. Health and Wellness Events $ 15,000.00

4. Tablet Program $ 22,108.72

5. Business Recovery Assistance $ 428,846.51
- Business Res Consultant $ 1,846.51
- Yiftee Gift Cards $ 7,000.00
- Bus Asst Grants/Loans $105,000.00
- Marketing Asst Prog $ 20,000.00
- Board Up Removal/Paint $ 19,600.00
- Administration $275,400.00
Balance -- Carry Over to 2nd Tranche projects $ 423,441.67 Total Approved Recovery Designated Projects $3,815,207.00

RECOMMENDED REALLOCATION REQUEST
Tranche 1 - $ 3,815,207 Designated for Recovery projects Unused Funds

2. Homelessness -- Pallet Shelters ($1,152,218.40)
Recommended Programs

8. Revitalization Low Income Housing Units $1,152,218.40 Total recommended reallocation $1,152,218.40
Total 1st Tranche Allocations $15,260,827.00
General Fund Revenue Recovery Approved Uses and Recommendations -- ARPA 2nd Tranche

APPROVED USES
$7,363,358 Revenue Recovery

1. Fire Contract $5,000,000

2. Police Salaries $2,363,358
Total Approved Projects Designated for General Fund $7,363,358 Designated Recovery Program Approved Uses -- ARPA 2nd Tranche

APPROVED USES
$7,897,469.00 Designated for Recovery projects

1. Water Tower Project $1,172,500.00

2. Sewer System Project $2,899,445.11

3. Air Conditioning & Generator Project $2,580,000.00

4. Employment Opportunities and Assistance for the Unhoused $ 3,973.39

5. School District Programs $ 0

6. Urgent Care Facility $ 3,540.00

7. Landlord Rental Assistance Program $ 0

8. Revitalization Low Income Housing Units $1,148,897.28

9. Cyber Security $ 94,000.00

10. EOC Upgrades $ 200,000.00

11. Civic Center Park $ 218,554.89
Total 2nd Tranche Approved Recovery Projects $8,320,910.67 MINUS Carry Over from 1st Tranche $ 423,441.67
Total 2nd Tranche Approved Recovery Projects $7,897,469.00

REALLOCATION RECOMMENDATION
To date the City has expended $24,232,412.62 in funds for the approved projects. Staff has identified $1,152,218.40 in unused funds that should be reallocated. The recommendation for distribution of the reallocated funds is as follows:

Recovery Projects -- 2nd Tranche

8. Revitalization Low Income Housing Units $1,152,218.40 Total Reallocation Recommendation $1,152,218.40
ECONOMIC DEVELOPMENT STRATEGIC PLAN:

Establish partnerships with entities that can work toward City goals and objectives.

FISCAL IMPACT:

None.

NOTICING PROCEDURE:
72 hours posted notice pursuant to the Ralph M. Brown Act

ATTACHMENTS
Interagency Agreement – Hawthorne Housing Rehabilitation

INTER-AGENCY AGREEMENT

BETWEEN

THE CITY
MANAGER’S OFFICE
AND

THE HOUSING DEPARTMENT
THIS INTER-AGENCY AGREEMENT (“Agreement”) is made between two agencies of the City of Hawthorne (“CITY”), namely the City Manager’s Office and the Housing Department (“Department”).

WHEREAS, the 2021 American Rescue Plan Act (“ARPA”) provided $30,260,827 million to the City from the Coronavirus State and Local Recovery Fund (“SLFRF”), which consists of the Coronavirus State Fiscal Recovery Fund (“CSFRF”) and Coronavirus Local Fiscal Recovery Fund (“CLFRF”) (hereinafter, collectively, called “ARPA funding”); WHEREAS, the U.S. Department of Treasury is the federal agency that administers the ARPA funding and has provided the City with the ARPA funding conditional on the City complying with its rules and regulations; and
WHEREAS, the City has established a process for City agencies and organizations external to the City to apply for ARPA funding; and
WHEREAS, the City desires to engage in a housing revitalization project known as the Hawthorne Housing Rehabilitation of the City Owned Properties 2023 (Project#23-09). This HUD approved project will update 38 existing low-income affordable housing units.

WHEREAS, the Hawthorne Housing Rehabilitation of the City Owned Properties 2023 (Project#23-09) is an eligible expense under the SLFRF Guidelines under the category for development, repair, and operation of affordable housing and services or programs to increase long-term housing security” is an enumerated eligible use to respond to impacts of the pandemic on households and communities; and
WHEREAS, the Hawthorne Housing Rehabilitation of the City Owned Properties 2023 (Project#23-09) in accordance with SLFRF Guidelines 17.16 may use SLFRF funds to cover increased costs attributable to change orders or contract contingencies. Such increased costs are not considered new obligations but are instead attributable to a preexisting obligation to accommodate the change or contingency; and
WHEREAS, the Hawthorne Housing Rehabilitation of the City Owned Properties 2023 (Project#23-09) has incurred additional expenses and requires a change to the original amount of the Agreement in the amount of $1,152,218.40 amending the total contracted amount of the Agreement to $2,310,115.68.

WHEREAS, Housing has the expertise and resources to provide such services and agrees to provide the services in accordance with the terms of this Agreement; NOW, THEREFORE, the parties agree as follows:

1. PURPOSE
City Manager’s Office hereby agrees to provide ARPA funding, in the amount set forth herein, to the Department to facilitate the implementation of the program.

2. SCOPE OF SERVICES
Housing agrees to manage the project and pay the contractor according to the job specifications for each site. The scope of work includes:

Remodeling, renovating and modifying the City’s apartment buildings, kitchens, and restrooms and to comply with the requirements of the Americans with Disability Act (ADA). The work also consist of new doors and frames, hardware, flooring, drywall, toilet compartments, toilet fixtures, windows, caulking and sealants, stripping, patching, painting, cleaning, plumbing, electrical and mechanical work and all other incidental work necessary to complete the improvement in accordance with the Specifications. This project will bring units up to code and upgrade living conditions.

3. TERM
The term of this Agreement shall commence on December 10, 2024 and shall continue until December 31, 2026, unless terminated earlier in accordance with Section 7 of this Agreement.

4. CONTRACT AMOUNT
• The City agrees to provide ARPA funding for the Hawthorne Housing Rehabilitation of the City Owned Properties 2023 (Project#23-09) under this Agreement in the amount not to exceed $2,301,115.68, payable to the vendor, selected during Bid process, upon the completion of the services. Any expenses/costs incurred by Department in excess of this amount shall be the sole responsibility of Department.
• Housing shall provide invoices to the City on monthly or quarterly basis, detailing the services performed by the vendor.

5. RESPONSIBILITIES OF HOUSING
Housing shall:
• Ensure all work is performed in a professional and timely manner. • Comply with all applicable laws, ordinances, and regulations. • Provide necessary tools, equipment, and personnel required to complete project management.
• Ensure that all expenditures are to be in accordance with the approved budget.

6. RESPONSIBILITIES OF THE CITY
The City shall:
• Provide access to all relevant city property and facilities required by Housing and selected vendor to perform its services.
• The City shall make ARPA funding as specified in this Agreement available for use. The ARPA funding shall be used to provide the services described in this Agreement

7. ENTIRE AGREEMENT
This Agreement constitutes the entire understanding between the City and Housing and supersedes all prior agreements or understandings, whether oral or written.

8. AMENDMENTS
This Agreement may be amended only in writing, signed by both parties.

9. GOVERNING LAW
This Agreement shall be governed by and construed in accordance with the laws of the State of California.

IN WITNESS WHEREOF, the parties hereby evidence their agreement to the above terms and conditions by having caused this Agreement to be executed below.

CITY OF HAWTHORNE
CITY MANAGER’S OFFICE
By: ________________________
Vontray Norris
City Manager
Date:_______________________

HOUSING DEPARTMENT
By: ________________________
Kimberly Mack
Housing Director
Date:_______________________
EXHIBIT 1

SCOPE OF SERVICES AND BUDGET

1. The Department will implement the program, as approved by CITY MANAGER’S OFFICE, which is attached hereto and incorporated herein.

2. The Department’s implementation of the program may include but not be limited to contracting with contractors or vendors, providing oversight of contractors or vendors, and providing budget oversight, drafting reports, and overseeing program evaluation.

3. The Department supported by CITY MANAGER’S OFFICE will provide grant management, compliance support, and fiscal oversight consistent with ARPA funding requirements.

4. The Department will work with contractors to track program outcomes and will provide draft program reports to CITY MANAGER’S OFFICE as requested. Information from the reports will be summarized and sent to the U.S. Department of Treasury by FINANCE DEPARTMENT.

5. The Department will receive invoices from contractors or vendors, track expenditures, and complete draft fiscal reports for submission to CITY MANAGER’S OFFICE.

6. The Department shall follow the instructions of CITY MANAGER’S OFFICE related to compliance with ARPA funding requirements.

AGENDA ITEM NO. 11.

CITY OF HAWTHORNE
City Council

AGENDA BILL
For the meeting of 01/28/2025
Originating Department: Finance
City Manager: Department Head:

SUBJECT:

Annual Comprehensive Financial Report of the City of Hawthorne for the Fiscal Year Ended June 30, 2024.

RECOMMENDED MOTION:

Staff recommends that the City Council receive and file the Annual Comprehensive Financial Report of the City of Hawthorne for the Fiscal Year ended June 30, 2024.

DISCUSSION:

The General Fund actual revenues exceeded budgeted revenues by approximately $10.1 million in Fiscal Year 2023-2024. The excess revenue was primarily due to an increase in tax and special assessments revenues and operating transfers in. While the City received 10.1% more than budgeted, with the slowing of the economy, this resulted in a decrease, the first since 2012, of 1.7% in General Fund revenues compared with the prior fiscal year 2022-2023. Revenue projections for FY 2023-2024 were based on conservative estimates to account for modest economic growth. The General Fund expenditures for Fiscal Year 2023-2024 were under budgeted expenditures by approximately $12.6 million. The decrease in expenditures was primarily due to a decrease in capital outlay; actual expenditures for all departments were below budgeted amounts.

The programs with lower than anticipated expenditure amounts included Mayor and City Council of $511 thousand, City Manager of $190 thousand, City Attorney of $138 thousand, Administrative Services of $619 thousand, Public Safety of $12.1 million, Planning of $654 thousand, Building & Safety of $184 thousand, Parks & Recreation of $590 thousand, and Public Works of $1.2 million.

The City's unrestricted fund balance for the General Fund increased from $78.7 million at year end June 30, 2022 to $93.98 million at year end June 30, 2023. The City's unrestricted fund balance at fiscal year end June 30, 2024 for the General Fund was $109,366,673. This is approximately 128.48% of the total General Fund Expenditures. The required fund Balance for Fiscal Year 2023-24 was $24.1 million, or 3 months (25%) of budgeted expenditures.

The City's total long-term liabilities decreased by $6.5 million during the current fiscal year, primarily due to the decrease in the bond liability in the fiscal year.

The City's operational liabilities, which include Compensated absences, OPEB, pension-related debt and claims and judgments, total $148 million. This is an increase of $13 million primarily in Net Pension Liability. Debt service payments for Fiscal Year 2023-24 totaled $5,350,850 as follows:

Debt Service Payment Amount
SBRPCA Lease $ 205,850
Certificates of Participation (Refinance of 2015 POB and Police Facility)
$2,215,000
2019 Pension Obligation Bonds $2,930,000
Total $5,350,850
As determined by the latest actuarial valuation, the City's OPEB Liability decreased by $96 thousand to a total of $100,619,074. The City currently pays the postemployment health insurance on a pay as you go basis, with payments totaling $3,211,093 in Fiscal Year 2023-2024. The Council authorized the PARS IRS approved Section 115 Trust which was established in November of 2022. A total of $4.5 million in contributions have been made to the trust since it was established.

The City's net position, at June 30, 2024 totaled $74.6 million. The total net position increased from the prior fiscal year 2022-23 by $33,354,329 primarily due to the decrease in public safety expenditures.

The following contributing items have impacted the overall net position:
· Taxes increased by $8.3 million
· Use of money & property increased by $2.7 million
· General Government expenditures decreased by $1.5 million middot; Public Safety expenditures decreased by $12.1 million · Community Development expenditures decreased by $838 thousand · Parks & Recreation expenditures decreased by $590 thousand · Public works expenditures decreased by $$1.2 million The following table reflects the change in net position from fiscal year 2022-23 to fiscal year 2023-24. nbsp;
ECONOMIC DEVELOPMENT STRATEGIC PLAN:
.

FISCAL IMPACT:

None.

NOTICING PROCEDURE:
72 hours posted notice pursuant to the Ralph M. Brown Act

ATTACHMENTS
ACFR 23-24
City of Hawthorne,
California

ANNUAL COMPREHENSIVE

FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
Prepared by the Hawthorne Finance Department
This page intentionally left blank.

City of Hawthorne,
California

ANNUAL COMPREHENSIVE

FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
Prepared by the Hawthorne Finance Department
This page intentionally left blank.

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

TABLE OF CONTENTS
INTRODUCTORY SECTION:

Letter of Transmittal ................................................................................................................ i Organizational Chart ............................................................................................................ viii List of Principal Officials ........................................................................................................ ix GFOA Certificate of Achievement for Excellence in Financial Reporting ............................... x FINANCIAL SECTION:

Independent Auditor's Report ................................................................................................ 1 Management's Discussion and Analysis ................................................................................ 5 Basic Financial Statements:

Government-Wide Financial Statements:

Statement of Net Position ......................................................................................... 20 Statement of Activities .............................................................................................. 21 Fund Financial Statements
Balance Sheet – Governmental Funds .................................................................... 23 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ................................................................................... 25 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds .......................................................................................... 26 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities .............. 28 Proprietary Funds
Statement of Net Position ......................................................................................... 29 Statement of Revenues, Expenses and Changes in Fund Net Position .................. 30 Statement of Cash Flows ......................................................................................... 31 Fiduciary Funds
Statement of Fiduciary Net Position ......................................................................... 32 Statement of Changes in Fiduciary Net Position ...................................................... 33 Notes to Basic Financial Statements ............................................................................. 34 Required Supplementary Information:

Budgetary Comparison Schedule by Department
General Fund ........................................................................................................... 96 Hawthorne Housing Authority Special Revenue Fund ............................................. 98 American Rescue Plan Act Fund ............................................................................. 99 2009 Street Improvements Special Revenue Fund ................................................. 100 City of Hawthorne
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2024
TABLE OF CONTENTS, (Continued)
FINANCIAL SECTION, (Continued):

Required Supplementary Information, (continued):

California Public Retirement System
Schedule of Changes in Net Pension Liability and Related Ratios ........................ 101 Schedule of Plan Contributions – Agent Plan ........................................................ 103 Schedule of City’s Proportionate Share of the Plan’s Net Pension Liability and Related Ratios as of the Measurement Date ............................................. 104 Schedule of Plan Contributions – Cost Sharing Plan ............................................. 105 Schedule of Plan Contributions – OPEB ................................................................ 106 Schedule of Changes in the Net OPEB Liability and Related Ratios ..................... 107 Notes to Required Supplementary Information ...................................................... 108 Supplementary Information:

Non-Major Governmental Funds:

Combining Balance Sheet ...................................................................................... 114 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ................................................................................................. 126 Schedule of Revenues, Expenditures, and Changes Fund Balance – Budget and Actual
Street Lighting Special Revenue Fund ............................................................. 138 Gas Tax Special Revenue Fund ...................................................................... 139 Street Special Revenue Fund .......................................................................... 140 Asset Forfeiture Special Revenue Fund ........................................................... 141 COPS Special Revenue Fund .......................................................................... 142 California Office of Traffic Safety Special Revenue Fund ................................ 143 Local Law Enforcement Block Grant Special Revenue Fund ........................... 144 MTA Measure R Special Revenue Fund .......................................................... 145 Proposition A Special Revenue Fund ............................................................... 146 MTA Measure M Special Revenue Fund .......................................................... 147 Proposition C Special Revenue Fund ............................................................... 148 Air Quality Special Revenue Fund ................................................................... 149 California Used Oil Recycling Special Revenue Fund ...................................... 150 California Beverage Container Recycling Special Revenue Fund ................... 151 Hawthorne Boulevard Mobility Improvement Special Revenue Fund .............. 152 CATV Peg Special Revenue Fund ................................................................... 153 Housing Asset Special Revenue Fund ............................................................. 154 HOME Grant Special Revenue Fund ............................................................... 155 Community Development Block Grant Special Revenue Fund ........................ 156 FEMA Grant Special Revenue Fund ................................................................ 157 SB1383 Local Assistance Grant Special Revenue Fund ................................. 158 Permanent Local Housing Allocation Special Revenue Fund .......................... 159 MTA Measure W Special Revenue Fund ......................................................... 160 SB2 Planning Grant Special Revenue Fund .................................................... 161 LEAP Grant Special Revenue Fund .................................................................. 162 Urban Security Initiative Grant Special Revenue Fund ..................................... 163 City of Hawthorne
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2024
TABLE OF CONTENTS, (Continued)
FINANCIAL SECTION, (Continued):

Rain Water Grant Special Revenue Fund ......................................................... 164 Los Angeles Centers for Alcohol and Drug Abuse Special Revenue Fund ....... 165 California Parks & Recreation Community Center Special Revenue Fund ....... 166 California Parks & Recreation Senior Center Special Revenue Fund ............... 167 HUD Community Development Special Revenue Fund .................................... 168 Building Resilient Infrastructure & Communities Special Revenue Fund .......... 169 Cannabis Retail Access Grant Special Revenue Fund ..................................... 170 Recycling Fund Special Revenue Fund ............................................................ 171 Development Impact Capital Projects Fund ...................................................... 172 Capital Improvement Capital Projects Fund ...................................................... 173 Parks Improvement Capital Projects Fund ........................................................ 174 Public Financing Authority Debt Service Fund .................................................. 175 2016 Refunding Bonds Debt Service Fund ...................................................... 176 2016 Direct Placement Lease Financing Fund ................................................. 177 2019 Pension Obligation Bond Debt Service Fund .......................................... 178 Internal Service Funds:

Combining Statement of Net Position .................................................................... 179 Combining Statement of Revenues, Expenses and
Changes in Fund Net Position .......................................................................... 180 Combining Statement of Cash Flows ..................................................................... 181 STATISTICAL SECTION (UNAUDITED):

Net Position by Component ............................................................................................... 183 Changes in Net Position ..................................................................................................... 185 Fund Balances of Governmental Funds ............................................................................. 189 Changes in Fund Balances of Governmental Funds ......................................................... 191 Assessed Value and Estimated Actual Value of Taxable Property .................................... 193 Direct and Overlapping Property Tax Rates ...................................................................... 194 Principal Property Taxpayers ............................................................................................. 196 Property Tax Levies and Collections .................................................................................. 197 Ratios of Outstanding Debt by Type .................................................................................. 198 Ratios of General Bonded Debt Outstanding ..................................................................... 199 Legal Debt Margin Information ........................................................................................... 200 Pledged-Revenue Coverage .............................................................................................. 202 Direct and Overlapping Debt .............................................................................................. 203 Demographic and Economic Statistics ............................................................................... 204 Principal Employers ........................................................................................................... 205 Full-Time and Part-Time Employees by Function .............................................................. 206 Operating Indicators by Function ....................................................................................... 207 Capital Asset Statistics by Function/Program .................................................................... 209 This page intentionally left blank.

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CITY COUNCIL
Cable Usage Corporation / Housing
Authority
Parking Authority / Redevelopment

CITY MANAGER
Von Norris
Phone (310) 349-2910

CITY TREASURER'S OFFICE
Marie Pondexter - Hornback
Phone (310) 349-2910

CITY ATTORNEY
Robert Kim
Phone (310) 349-2960

CITY CLERK'S OFFICE
Dayna Williams - Hunter
Phone (310) 349-2915

PUBLIC WORKS
Akbar Farokhi
Phone (310) 349-2980

HUMAN RESOURCES
Erika Lampkin
Phone (310) 349-2950

POLICE SERVICES
Chief Gary Tomatani
Phone (310) 349-2810
FINANCE - GL, Payroll & GRANTS
Felice Lopez
Phone (310) 349-2920

COMMUNITY SERVICES
Vacant
Phone (310) 349-1640

HOUSING - CDBG/HOME
Kimberly Mack
Phone (310) 349-1600

BUILDING & SAFETY
Vacant
Phone (310) 349-2990
Revenue and AP Manager
Shuntell Dixon
Phone (310) 349-2926

ELECTORATE
PW GRANTS, MAINT. & FLEET
Akbar Farokhi
Phone (310) 349-2980
PLANNING & CODE ENF.

Gregg McClain
Phone (310) 349-2970
YLiL

ALEX VARGAS
MAYOR

ALEX MONTEIRO

COUNCILMEMBER
Von Norris
City Manager
Robert Kim
City Attorney
Marie Poindexter - Hornback
City Treasurer
Akbar Farokhi Gary Tomatani
Public Works/Engineering Chief of Police
Felice Lopez Shuntell Dixon
Finance - GL, Payroll & Grants Revenue and A/P Manager
Vacant Paul Wu
Community Services Director Building & Safety
Erika Lampkin Kimberly Mack
Human Resources Director Housing Director
Akbar Farokhi Gregg McClain
PW Grants, Maintenance & Fleet Planning Director

CITY OFFICIALS
L. DAVID PATTERSON

COUNCILMEMBER

MAYOR AND CITY COUNCIL

CITY OF HAWTHORNE

KATRINA MANNING

COUNCILMEMBER

ANGIE REYES ENGLISH

MAYOR PRO TEM
ix
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Hawthorne
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2023
Executive Director/CEO
[
This page intentionally left blank.
735 E. Carnegie Dr. Suite I 00
San Bernardino. CA 92408
909 889 0871 T
909 889 5361 F
ramscpa. net

PARTNERS
Scott W Manno. CPA. CGMA
Leena Shanbhag, CPA. MST. CGMA
Bradferd A. Welebir. CPA. MBA. CGMA
Jenny W. Liu. CPA, MST
Ga,·denya Duran, CPA, CGMA
Brianna Schultz, CPA. CGMA
Brenda L. Odle. CPA. MST (Partne, Emeritus)
Te, ry P Shea, CPA (Panner Emenws)

MANAGERS/ STAFF
Seong-Hyea Lee. CPA. MBA
Evelyn Morenlin-Barcena. CPA
Vernnica Hernandez, CPA
Laura A1v1zu. CPA
John Maldonado, CPA, MSA
Julia Rodriguez Fuentes. CPA, MSA
Dem, Hite. CPA
Jeffrey McKennan. CPA
Mornca Wysock,, CPA
Jacob Weatherb,e. CPA, MSA
Bolim Han. CPA. MAcc
Anny Gonzalez, CPA

MEMBERS
Amencan lnsutuce of
Certified Public Accountants
PCPS The A/CPA Alliance
(01 CPA Fi,ms
Governmental Audit
Q11C1/1ty Cenre,
Califot nia Society of
Certified Public Accountants
•
Proud Member of
AlliottGlobalAlliance~

ROGERS, ANDERSON , MALODY & SCOTT, LLP
CERTIFIED PUBLIC ACCOUNTANTS. SINCE 1948
STABILITY. ACCURACY. TRUST.
-1-
Independent Auditor’s Report
To the Honorable Mayor and Members of the City Council
City of Hawthorne, California
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Hawthorne (the City), as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

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

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States (Government Auditing Standards). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
-2-
Responsibilities of Management for the Financial Statements The City’s management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Other Matters
As discussed in Note 1 to the financial statements, in the year ended June 30, 2024, the City adopted new accounting guidance under Governmental Accounting Standards Board (GASB) Statement No.100, Accounting Changes and Error Corrections. Our opinions are not modified with respect to this matter.

Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS and Government Auditing Standards, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.
 Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks.

Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.
 Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
-3-
 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

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

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

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Hawthorne's basic financial statements. The combining and individual nonmajor fund financial statements and schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The combining and individual nonmajor fund financial statements and schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and the nonmajor fund budgetary comparison schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
-4-
Other Information Included in the Annual Comprehensive Financial Report Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections of the Annual Comprehensive Financial Report but does not include the financial statements and our auditor's report thereon.

Our opinions on the 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 financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 20, 2024, on our consideration of the City of Hawthorne’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on 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 City of Hawthorne's internal control over financial reporting and compliance.

San Bernardino, California
December 20, 2024
City of Hawthorne
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2024
-5-
As management of the City of Hawthorne, we offer readers of the City of Hawthornes’ financial statements this narrative overview and analysis of the financial activities of the City of Hawthorne for the fiscal year ended June 30, 2024. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, and the accompanying basic financial statements.

FINANCIAL HIGHLIGHTS
 At June 30, 2024, the City’s net position (assets plus deferred outflows of resources less liabilities and deferred inflows of resources) was $74 million. Of this amount, $(120.5) million is unrestricted.
 The City of Hawthorne total net position increased from the prior fiscal year by $33,354,329 primarily due to the decrease in public safety expenditures.  At the close of the current fiscal year, the City of Hawthorne governmental funds reported combined fund balances of $136,438,547, an increase of $13,495,175 in comparison with the prior year. Approximately 74% of this amount, $101,130,549, is unassigned fund balance.
 At the end of the current fiscal year, unrestricted fund balance (the total of the committed, assigned, and unassigned components of fund balance) for the General Fund was $109,366,673 or approximately 128.48% of total General Fund expenditures.

OVERVIEW OF THE ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR) The City is required to present its financial statement in accordance with Generally Accepted Accounting Principles (GAAP) as promulgated by the Government Accounting Standards Board (GASB) pronouncements. The discussion and analysis provided here is intended to serve as an introduction to the City of Hawthorne basic financial statements. The City of Hawthorne basic financial statements consist of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to basic financial statements. This report also includes supplementary information intended to furnish additional detail to support the basic financial statements themselves.

City of Hawthorne
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2024
-6-
Government-Wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview of the City of Hawthorne finances, in a manner similar to a private-sector business.

The statement of net position presents financial information on all of the City of Hawthorne assets, liabilities, and deferred inflows/outflows 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 of Hawthorne is improving or declining.

The statement of activities presents information showing how the City of Hawthorne 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, with the use of the accrual basis of accounting, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).

Both of the government-wide financial statements distinguish functions of the City of Hawthorne 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 of Hawthorne include general government, community development, public safety, highways, streets, and parks, and culture and recreation. The business-type activities of the City of Hawthorne include the City’s Airport, Sewer and Storm Drain, and Storm Water.

The basic financial statements include the City (Primary government) and all legally separate entities (component units) for which the government is financially accountable. The City’s component units consist of the following: The Housing Authority of the City of Hawthorne, The Parking Authority of the City of Hawthorne, and the Hawthorne Public Financing Authority. These component units have been included in the basic financial statements as an integral part of the primary government using the blended method.

The government-wide financial statements can be found on pages 20-22 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 activities or objectives. The City of Hawthorne, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with financerelated legal requirements. All of the funds of the City of Hawthorne can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.

City of Hawthorne
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2024
-7-
Governmental Funds - Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements.

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 governments near-term financing requirements.

Because the focus of governmental funds is narrower 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 City of Hawthorne nearterm financing decisions. Both the governmental fund Balance Sheet and the governmental funds Statement of Revenues, Expenditures, and Changes in Fund Balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The major governmental funds include the General Fund, the Hawthorne Housing Authority Fund, the American Rescue Plan Act Fund and the 2009 Street Improvement Fund, which are reported in detail in the governmental Fund Financial Statements. All other funds are shown in the aggregate as other non-major funds. Individual fund data for other non-major governmental fund is provided in the form of supplementary information elsewhere in the report.

The basic governmental fund financial statements can be found on pages 23-28 of this report.

Proprietary Funds - The City of Hawthorne maintains two types of proprietary funds: enterprise funds and internal service 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 account for its Airport, Sewer and Storm Drain, and Storm Water operations. Internal service funds are an accounting mechanism used to accumulate and allocate costs internally among the City’s various functions. The City uses internal service funds to account for its Risk Management and Vehicles & Equipment Replacement. Because these services benefit both the governmental and the business-type activities, they have been allocated between governmental and business-type 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 enterprise funds and internal service funds are each combined into a single aggregated presentation by fund type in the proprietary fund financial statements. Individual fund data for the enterprise funds and internal service funds is provided in the form of supplementary information elsewhere in the report.

The basic proprietary fund financial statements can be found on pages 29-31 of this report.

City of Hawthorne
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2024
-8-
Fiduciary Funds - Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds.

Trust funds use the flow of economic resources measurement focus and the accrual basis of accounting. The Custodial Fund also uses the accrual basis of accounting and are custodial in nature. The fiduciary funds also include the Successor Agency to the Dissolved Hawthorne Redevelopment Agency in addition to agency funds. The Successor Agency is presented as a Private Purpose Trust Fund in this report.

The fiduciary fund financial statements can be found on pages 32-33 of this report.

Notes to Basic Financial Statements - The notes provide additional information that is necessary to acquire a full understanding of the data provided in the government-wide and fund financial statements. The notes to basic financial statements can be found on pages 34-95 of this report.

Other Information - In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning budgetary comparison schedules, the City’s proportionate share of the net pension liability and the related schedule of contributions, and schedule of changes in the Net OPEB Liability and related ratios.

Required supplementary information can be found on 96-108 of this report.

GOVERNMENT-WIDE OVERALL FINANCIAL ANALYSIS
The government-wide financial statements provide information about the City’s overall financial picture from the perspective of all the City’s governmental and business-type funds combined together. This form of financial reporting is intended to provide a perspective similar to that found in the private sector with its basis in full accrual accounting and elimination or reclassification of internal activities. The government-wide financial statements provide long-term and short-term information about the City’s overall financial condition. This analysis addresses the financial statements of the City as a whole.

Statement of Net Position - Net position may serve over time as a useful indicator of a government’s financial condition. In the case of the City, assets and deferred outflows exceeded liabilities and deferred inflows by $74.5 million at June 30, 2024. Approximately $160 million of the City’s net position reflect its investment in capital assets (e.g., land, buildings, machinery, and equipment), less any related outstanding debt that was used to acquire those assets. The City uses these capital assets to provide a variety of services to its citizens. Accordingly, these assets are not available for future spending. Although the City 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.

City of Hawthorne
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2024
-9-
A portion of the City’s net position, $34.2 million represents resources that are subject to external restrictions on how they may be used. The remaining balance is a deficit in unrestricted net position of, $(120.5) million, is for unrestricted uses in accordance with finance-related legal requirements. This deficit reflects liabilities which exceeds assets on hand and is related mainly due to pension and OPEB liabilities, and long-term liabilities for funding the unfunded pension obligation.

At the end of the 2024 fiscal year, the City is able to report positive balances in all categories of net position for the government as a whole except for unrestricted net position. 2024 2023 2024 2023 2024 2023
Current and other assets 187,145,806 $ $ 167,931,412 $ 23,227,057 $ 23,324,857 $ 210,372,863 $ 191,256,269 Capital assets, net 172,322,763 150,864,840 11,470,932 11,296,460 183,793,695 162,161,300 Total assets 359,468,569 318,796,252 34,697,989 34,621,317 394,166,558 353,417,569 Deferred outflows
of resources 57,105,547 82,499,376 737,164 805,410 57,842,711 83,304,786 Non-current liabilities 275,557,393 269,169,316 849,785 580,663 276,407,178 269,749,979 Other liabilities 31,310,303 35,826,288 527,867 439,771 31,838,170 36,266,059 Total Liabilities 306,867,696 304,995,604 1,377,652 1,020,434 308,245,348 306,016,038 Deferred inflows
of resources 52,559,626 72,345,383 16,626,747 17,137,715 69,186,373 89,483,098 Net position
Net investment in
capital assets 149,390,159 135,562,068 11,470,932 11,296,460 160,861,091 146,858,528 Restricted 34,192,411 32,823,203 - 34,192,411 - 32,823,203 Unrestricted (126,435,776) (144,430,630) 5,959,822 5,972,118 (120,475,954) (138,458,512) Total net position 57,146,794 $ $ 23,954,641 $ 17,430,754 $ 17,268,578 $ 74,577,548 $ 41,223,219 Total
Business-Type
Activities
Governmental
Activities
Governmental Activities - The City’s net position from governmental activities totaled $57.14 million. The cost of all governmental activities this year was $133.6 million. However, as shown in the Statement of Activities, the amount that the taxpayers ultimately financed for these activities was only $89.7 million because some of the cost was paid by those who directly benefited from the programs ($15.7 million), or by other governments and organizations that subsidized certain programs with operating and capital grants and contributions ($53.4 million). Overall, the City’s governmental program revenues were $69.1 million. The City paid for the remaining “public benefit” portion of governmental activities with $22.3 million in taxes (some of which could only be used for certain programs) and with $7.8 million of other revenues, such as interest earnings and general entitlements.

City of Hawthorne
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2024
-10-
Capital contributions and grants increased by $6.3 million from the prior fiscal year. This increase is primarily due to $2.2 million in public works street Improvements, and $3.2 million in Community Development programs. Operating grants and contributions, the City’s second largest revenue source, increased by $5.5 million from the prior fiscal year. This is primarily the result of $2.5 million in American Rescue Plan Act programs, and $2.8 million in Community Development programs. Property tax increased by $1.5 million or 6.5%. Sales tax, the City’s largest revenue source, decreased by $4.3 million or 12.2% from the prior fiscal year. This decrease was primarily the result of a decrease in the Auto and Transportation and Business and Industry categories, due to higher interest rates. Transient occupancy taxes decreased by $1 million primarily due a decrease in Hotel stays as a result of inflation and increases in rental rates.

Increase
(Decrease) Percent
Percent From Increase
2024 of Total 2023 (Decrease)
Revenue Source
Charges for services 15,701,120 $ 9.4% (1,045,383) $ -6.7% Operating contributions and grants 33,132,326 19.9% 5,508,158 16.6% Capital contributions and grants 20,280,336 12.2% 6,328,512 31.2% Property taxes 24,417,302 14.7% 1,591,621 6.5%
Sales taxes 36,012,398 21.6% (4,381,397) -12.2%
Transient occupancy taxes 6,846,103 4.0% (1,044,906) -15.3% Franchise taxes 3,693,594 2.2% 602,666 16.3%
Business License taxes 10,541,480 6.3% 1,089,287 10.3%
Utility Users tax 8,029,444 4.8% (763,088) -9.5%
Cannabis tax 189,024 0.1% (487,586) -257.9%
Other 7,799,009 4.7% 4,192,496 53.8%
Total revenue 166,642,136 $ 100% 11,590,380 $ 7.0%
Charges for
Services, 9.4%
Operating
Contributions and
Grants, 19.9%
Capital
Contributions and
Grants, 12.2%
Property Taxes,

14.7%
Sales Taxes,

21.6%
Franchise, UUT &
TOT, 11.0%
Business License
Tax, 6.3%
Cannabis Tax,

0.1%
Other General
Revenue and
Transfers, 4.7%

GOVERNMENTAL ACTIVITIES
Revenue by Source
Fiscal Year 2023-24
City of Hawthorne
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2024
-11-
The most significant governmental expense for the City was in providing for public safety, which incurred expenses of $71.6 million. The change is mainly due to the unrealized change in the net pension liability.

Increase
(Decrease) Percent
Percent From Increase
2024 of Total 2023 (Decrease)
Function
General government 16,820,840 $ 12.7% (1,735,505) $ -10.3% Public safety 71,667,280 53.6% (28,556,244) -39.8%
Community development 18,779,695 14.0% 2,759,615 14.7%
Parks and recreation 6,092,428 4.6% 337,294 5.5%
Public works 15,874,801 11.9% 1,569,358 9.9%
Interest on long-term debt 4,439,565 3.3% (96,295) -2.2% Total expenses 133,674,609 $ 100% (25,721,777) $ -19.2% General
Government,

12.7%
Public Safety,

53.6%
Community
Development,

14.0%
Highways, Streets
and Parks, 4.6%
Public Works,

11.9%
Interest on LongTerm Debt, 3.3%

GOVERNMENTAL ACTIVITIES
Expenses by Function
Fiscal Year 2023-24
City of Hawthorne
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2024
-12-
Business-type Activities. Revenues of the City’s business-type activities were $2.7 million for the fiscal year ending June 30, 2024. Expenses for the City’s business-type activities were $2.4 million and transfers out of $0.2 million for the year, resulting in a net increase in net position of $0.2 million. The net revenues are the result of several factors, including the following:

The City’s Airport recorded total revenue of $1.5 million. Expenses for the City’s Airport were $1.4 million, resulting in a increase in net position before transfers of $88 thousand.

The most significant expenses of the Airport are $0.8 million for administration and general, $0.1 million for contractual services and $0.3 million in depreciation.

The City’s Sewer and Storm Drain Maintenance services recorded charges for service of $1.2 million, while expenses totaled $0.9 million, resulting in an increase in net position before transfers of $0.2 million. The most significant expenses of the Sewer Fund are $0.6 million for administration, $0.1 million for contractual services, and $90 thousand for depreciation.

The City’s Storm Water services recorded charges for services of $23 thousand. No expenses were incurred, resulting in an increase in net position of $23 thousand.

The decrease in change of net position from business-type activities from prior year is primarily due to a decrease in operating contributions and grants received.

City of Hawthorne
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2024
-13-
2024 2023 2024 2023 2024 2023
Revenues
Program revenues:

Charges for services $ 15,701,120 $ 16,746,503 $ 1,908,298 $ 2,331,517 $ 17,609,418 $ 19,078,020 Operating contributions and
grants 33,132,326 27,624,168 359,050 305,942 33,491,376 27,930,110 Capital contributions and grants 20,280,336 13,951,824 - 20,280,336 - 13,951,824 General revenues:

Property taxes 24,417,302 22,825,681 - 24,417,302 - 22,825,681 Sales taxes 36,012,398 40,393,795 - 36,012,398 - 40,393,795 Transient occupancy taxes 6,846,103 7,891,009 - 6,846,103 - 7,891,009 Franchise taxes 3,693,594 3,090,928 - 3,693,594 - 3,090,928 Business License taxes 10,541,480 9,452,193 - 10,541,480 - 9,452,193 Utility Users tax 8,029,444 8,792,532 - 8,029,444 - 8,792,532 Cannabis tax 189,024 676,610 - - 189,024 676,610
Other 7,799,009 3,606,513 519,780 459,963 8,318,789 4,066,476 Total Revenues 166,642,136 155,051,756 2,787,128 3,097,422 169,429,264 158,149,178 Expenses
General government 16,820,840 18,556,345 - 16,820,840 - 18,556,345 Public safety 71,667,280 100,223,524 - 71,667,280 - 100,223,524 Community development 18,779,695 16,020,080 - 18,779,695 - 16,020,080 Parks and recreation 6,092,428 5,755,134 - 6,092,428 - 5,755,134 Public works 15,874,801 14,305,443 - 15,874,801 - 14,305,443 Interest on long-term debt 4,439,565 4,535,860 - 4,439,565 - 4,535,860 Airport - 1,466,634 - 1,209,697 1,466,634 1,209,697
Sewer and storm drain - - 933,692 385,151 933,692 385,151 Total Expenses 133,674,609 159,396,386 2,400,326 1,594,848 136,074,935 160,991,234 Increase in Net Position
Before Transfers 32,967,527 (4,344,630) 386,802 1,502,574 33,354,329 (2,842,056) Transfers in/(out) 224,626 195,609 (224,626) (195,609) - - Change in Net Position 33,192,153 (4,149,021) 162,176 1,306,965 33,354,329 (2,842,056) Net Position, Beginning 23,954,641 28,103,662 17,268,578 15,961,613 41,223,219 44,065,275 Net Position, Ending $ 57,146,794 $ 23,954,641 $ 17,430,754 $ 17,268,578 $ 74,577,548 $ 41,223,219

STATEMENT OF ACTIVITIES
Total
Governmental
Activities
Business-Type
Activities

FINANCIAL ANALYSIS OF GOVERNMENTAL FUNDS
As noted earlier, the City of Hawthorne uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

Governmental Funds
The focus of the City of Hawthorne’s governmental fund is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City of Hawthorne financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.

City of Hawthorne
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2024
-14-
In particular, 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 of Hawthorne itself, or a group or individual that has been delegated authority to assign resources for use for particular purposes by the City of Hawthorne’s Council.

At June 30, 2024, the City of Hawthorne governmental funds reported combined fund balances of $136.4 million, an increase of $13.5 million in comparison with the prior year. Approximately 74% of this amount ($101.1 million) constitutes unassigned fund balance. The remainder of the fund balance is either nonspendable or restricted.

Major Funds
The General Fund is the chief operating fund of the City of Hawthorne. At the end of the current fiscal year, unassigned fund balance of the General Fund was $109.3 million. As a measure of the General Fund’s liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total General Fund expenditures. Unassigned fund balance represents approximately 128.48% of the total General Fund expenditures, while total fund balance represents approximately 118.81% of that same amount.

The fund balance of the City of Hawthorne General Fund increased by $15 million during the current fiscal year. As discussed earlier in connection with governmental activities, the increase was due primarily to the increase in operating and capital contributions and grants. As discussed above, property tax revenue increased by $1.5 million, sales tax revenue decreased by $4.3 million, and other taxes decreased by $0.1 million from the prior fiscal year. Intergovernmental revenues increased by $212 thousand due to state mandated and Prop A reimbursements.

General Fund expenditures were $12.4 million less than in the previous fiscal year. This decrease is due a reduction in Capital Outlay.

The Hawthorne Housing Authority Special Revenue Fund is used to account for the housing assistance programs for the qualified low-income residents. This fund ended the year with a fund balance of $432 thousand, a decrease of $40 thousand from the fiscal year 2023. The decrease was mainly due to the increase in charges for services.

The American Rescue Plan Act is used to provide relief to the City for the negative impacts caused from the COVID-19 Pandemic. The fund ended the year with a fund balance of $833 thousand, an increase of $428 thousand from fiscal year 2023. The increase was mainly due to the recognition of prior years’ unearned revenue.

The 2009 Street Improvements Fund is used to account for the City's roadway improvement projects. The fund ended the year with a deficit fund balance of $1.5 million, a decrease of $2.5 million from fiscal year 2023. The decrease was mainly due to pending reimbursement from current Street Improvement projects.

City of Hawthorne
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2024
-15-
Proprietary Funds
The City of Hawthorne proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail.

Airport Fund accounts for the operation of the City’s airport, which is operated in a manner similar to a private airport. At the end of the year, the net position amounted to $9.2 million. The total change in net position for the Airport Fund was negative $30 thousand. The change was mainly due to the unrealized change in the net pension liability.

Sewer and Storm Drain Fund accounts for the operation of the City’s sewer services. At the end of the year, the net position amounted to $7.8 million. The total change in net position for the Sewer and Storm Drain Fund was $169 thousand. The change was mainly due to the to the unrealized change in the net pension liability.

Storm Water Fund accounts for the operation of the City’s storm water services. At the end of the year, the net position amounted to $311 thousand. The total change in net position for the Storm Water Fund was $23 thousand. The change was due to the decreased storm water inspection fees.

GENERAL FUND BUDGETARY HIGHLIGHTS
During the year, the City’s adopted General Fund revenue and expenditure budgets were amended. The operating expenditure budget was increased by $7.6 million due to the implementation of continued implementation of American Rescue Plan Act/Covid-19 and community related programs and services, for a total amended expenditure budget of $97 million for Fiscal Year 2023-2024. These amendments to original budgeted appropriations were authorized by City Council during the mid-year review. Other minor amendments to reallocate appropriations among departments took place. The movement of the appropriations between departments was not significant and did not increase the overall operating budget.

The General Fund revenues exceeded budgeted revenues by approximately $10.1 million in Fiscal Year 2023-2024. The excess revenue was primarily due to an increase in tax and special assessments revenues and operating transfers in.

The General Fund expenditures were under budgeted expenditures by approximately $12.6 million. The less expenditures were primarily due a decrease in Capital Outlay.

The overall General Fund Budget for Fiscal Year 2023-2024 was approximately $22.7 million more favorably than projected due to the additional revenues, as noted above.

City of Hawthorne
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2024
-16-
Difference
Taxes 84,762,000 $ 93,065,191 $ 8,303,191 $
Licenses and permits 1,925,000 1,756,594 (168,406)
Intergovernmental 1,567,250 1,864,291 297,041
Charges for services 4,710,200 4,206,780 (503,420)
Fines and forfeitures 3,200,000 2,707,336 (492,664)
Use of money and property 1,900,000 4,612,450 2,712,450 Contributions 200,000 200,000 -
Miscellaneous 1,901,331 1,887,664 (13,667)
$ 110,300,306 100,165,781 $ 10,134,525 $
Estimated
Revenues
Actual
Revenues
Difference
General government 16,364,648 $ 14,813,594 $ 1,551,054 $ Public safety 68,569,664 56,452,918 12,116,746
Community development 4,291,435 3,453,512 837,923
Parks and recreation 5,348,847 4,758,783 590,064
Public works 3,133,067 1,878,545 1,254,522
Capital outlay 25,075 3,763,382 (3,738,307)
$ 85,120,734 97,732,736 $ 12,612,002 $
Appropriated
Expenditures
Actual
Expenditures

CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets. Capital assets including infrastructure of the City are those assets that are used in the performance of the City’s functions. At June 30, 2024, net capital assets totaled $172.3 million for governmental activities and $11.4 million for business-type activities, net of accumulated depreciation on capital assets, which is recognized in the Government-wide Financial Statements.

City of Hawthorne
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2024
-17-
This investment in capital includes land, building, improvements other than buildings, infrastructure (Prairie Ave Project, Holly & Ramona Park Improvement, Street Inlet Improvement, Taxiway Rehab and Sewer Construction etc.) and machinery and equipment (Police vehicle replacement, etc.). The total increase in the City’s investment in capital asset for Fiscal Year 2023- 2024 was $21.6 million compared to prior year.
2024 2023 2024 2023 2024 2023
Land $ 25,350,766 $ 21,599,187 $ 37,314 $ 37,314 $ 25,388,080 $ 21,636,501 Buildings and Improvements 17,377,563 18,842,287 854,315 905,710 18,231,878 19,747,997 Furniture and Equipment 7,033,348 3,832,920 - - 7,033,348 3,832,920 Infrastructure 102,980,533 100,954,536 9,897,718 7,389,552 112,878,251 108,344,088 Investment in Joint Venture (RCC) 3,257,498 3,587,673 - - 3,257,498 3,587,673 Construction in progress 16,311,546 1,815,120 681,585 2,963,884 16,993,131 4,779,004 Right-to-use subscriptions 11,509 233,117 - - 11,509 233,117 Total $ 172,322,763 $ 11,470,932 150,864,840 $ 11,296,460 $ 183,793,695 $ 162,161,300 $ Activities Activities Total
Governmental Business-Type
Additional information on the City of Hawthorne’s capital assets can be found in Note 4 on pages 53-54 of this report.

Long-term liabilities. At the end of the current fiscal year, the City had total bonded debt outstanding of $128.2 million. The remainder of the City of Hawthorne’s long-term obligations comprises lease payable, loan payable, compensated absences, OPEB, pension-related debt, and claims and judgments.

City of Hawthorne’ Outstanding Liabilities
2024 2023 2024 2023 2024 2023 2024 2023
Long-Term Debt:

Bond $ 128,193,600 $ 133,563,353 $ - -$ -$ -$ 128,193,600 $ 133,563,353 $ Lease payable - 88,856 11,506 22,766 - - 11,506 111,622 Loan payable - 1,045,000 - - - - - 1,045,000
Total $ 128,193,600 $ 134,697,209 $ 11,506 $ 22,766 -$ -$ 128,205,106 $ 134,719,975 $ Operational Liabilities:

Compensated absences $ 8,026,448 $ 7,920,319 $ 44,769 $ 93,965 $ 120,015 $ 100,881 $ 8,191,232 $ 8,115,165 OPEB 100,619,074 100,714,992 - - - - 100,619,074 100,714,992 Net Pension Liability 31,441,816 19,731,209 625,470 411,211 729,770 479,782 32,797,056 20,622,202 Claims and Judgment payable - 6,594,710 - 5,577,645 - - 6,594,710 5,577,645 Total $ 140,087,338 $ 128,366,520 $ 7,264,949 $ 849,785 6,082,821 $ $ 580,663 $ 135,030,004 148,202,072 $ Activities
Governmental Business-Type
Activities
Internal Service
Activities
Total
The City’s total long-term liabilities increased by $13.1 million during the current fiscal year, primarily due to actuarial change in net pension liability.

Additional information on the City of Hawthorne' long-term liabilities can be found in Note 6, 7, 8, 9, 11, and 12 of this report.

City of Hawthorne
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2024
-18-

ECONOMIC FACTORS AND NEXT YEAR'S BUDGET
Real GDP increased 2.8% at the end of the third quarter of 2024, on top of 3% in the second quarter of 2024. The City continues to focus on maintaining a conservative outlook, particularly with respect to revenues. In the case of the City of Hawthorne, slow and steady growth is projected at this point. The City's total General Fund revenue decreased for the first time since 2012 by 1.7% ($1,893,575) in FY 2024 compared to FY 2023.

The City of Hawthorne has been fortunate to have a stable and diverse economic base, which has somewhat shielded its economy from downturns in any one specific category. With the slowing economy, the City of Hawthorne experienced its first decrease in Sales Tax revenue in fiscal year 2023-24, but the total overall Tax revenue category showed an increase over budget of $8.3 M. The City's top five revenue sources are Sales Tax, Vehicle License Fees, Property Tax, Business License Tax, and Utility Users Tax. The Los Angeles County Economic Development Corporation (LAEDC) produces an annual forecast to assess and predict key national, state, regional, and local economic indicators. According to the February 2024 Economic Forecast prepared by the Los Angeles County Economic Development Corporation, " While we believe that the nation and the Los Angeles region will avoid a recession during the next two years, higher interest rates will continue to weigh down the economy for some time. That said, the Los Angeles economy is robust and resilient. How we decide to address our challenges and position ourselves to take advantage of emerging opportunities will shape the prosperity and quality of life for our diverse communities for years to come." California's unemployment rate increased to 5.4% in October 2024, compared to 4.8% in November 2023 and 4.8% in November 2022. In October 2024, the unemployment rate in California was higher than the US overall. Unemployment is one of the most important measures that economists track to gauge the health of an economy. In general, low unemployment rates mean an economy is strong because most workers can find jobs. In September, the Federal Open Market Committee projected the U.S. unemployment rate will average 4.4% in 2024 and 2025.

According to the Bureau of Labor Statistics data the average unemployment rate in Los Angeles County, for October 2024, was estimated at 5.40%, compared to October 2023 at 5.30%. The UCLA Anderson Forecast predicts an annual average of 5.6% in 2024, 5.1% in 2025, and 5.7% in 2026.

In developing the budget for fiscal year 2024-25, the first priority was to build on City Council's direction to reduce general fund expenditures and seek opportunities for new revenues. In order to continue to retain and attract business, the City must strive to maintain a business-friendly approach.

The City of Hawthorne's financial outlook remains positive. The recommended fiscal year 2023- 24 budget is balanced and in compliance with the City Council's amended General Fund Reserve Policy and the adopted Fiscal Management Policy. The City continues to operate efficiently and effectively, all while continuing to provide outstanding services for the community.

City of Hawthorne
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2024
-19-

REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the City of Hawthorne's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Finance Department, 4455 West 126th Street, Hawthorne, California, 90250.

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BASIC FINANCIAL STATEMENTS

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City of Hawthorne
Statement of Net Position
June 30, 2024
The accompanying notes are an integral part of these financial statements. -20-
Governmental Business-Type
Activities Activities Total
Assets
Cash and investments 149,067,831 $ 5,742,420 $ 154,810,251 $ Cash and investments with fiscal agents 10,442,124 - 10,442,124 Receivables:

Accounts 19,997,449 303,760 20,301,209
Taxes 369,970 - 369,970
Notes and loans 63,529 - 63,529
Interest 820,736 36,888 857,624
Leases 5,860,882 17,143,989 23,004,871
Due from Successor Agency 350,503 - 350,503
Prepaid expenses 88,000 - 88,000
Inventories 84,782 - 84,782
Capital assets, not being depreciated 41,662,312 718,899 42,381,211 Capital assets, net of accumulated depreciation 130,660,451 10,752,033 141,412,484 Total assets 359,468,569 34,697,989 394,166,558
Deferred Outflows of Resources
Unamortized loss on defeasance of debt 221,379 - 221,379 Pension related 39,084,492 737,164 39,821,656
OPEB related 17,799,676 17,799,676 -
Total deferred outflows of resources 57,105,547 737,164 57,842,711 Liabilities
Accounts payable 11,176,692 277,935 11,454,627
Accrued liabilities 1,619,063 40,594 1,659,657
Accrued interest 548,361 - 548,361
Unearned revenue 13,929,630 189,074 14,118,704
Deposits payable 4,036,557 20,264 4,056,821
Non-current liabilities:

Due within one year
Claims and judgments 1,318,942 - 1,318,942
Compensated absences 1,614,244 24,003 1,638,247
Long-term debt 5,517,809 - 5,517,809
Due in more than one year
Claims and judgments 5,275,768 - 5,275,768
Compensated absences 6,456,973 96,012 6,552,985
Long-term debt 122,687,297 - 122,687,297
Net pension liability 32,067,286 729,770 32,797,056
OPEB liability - 100,619,074 100,619,074
Total liabilities 306,867,696 1,377,652 308,245,348
Deferred Inflows of Resources
Pension related 13,519,819 9,559 13,529,378
OPEB related 33, - 343,680 33,343,680
Lease related 5,696,127 16,617,188 22,313,315
Total deferred inflows of resources 52,559,626 16,626,747 69,186,373 Net Position (deficit)
Net investment in capital assets 149,390,159 11,470,932 160,861,091 Restricted for:

Public safety 1,892,112 - 1,892,112
Community development 7,204,311 - 7,204,311
Parks and recreation 451,871 - 451,871
Public works 17,566,534 - 17,566,534
Capital improvements 6,747,980 - 6,747,980
Debt service 329,603 - 329,603
Unrestricted (126,435,776) 5,959,822 (120,475,954)
Total net position (deficit) 57,146,794 $ 17,430,754 $ 74,577,548 $ City of Hawthorne
Statement of Activities
For the Fiscal Year Ended June 30, 2024
The accompanying notes are an integral part of these financial statements. -21-
Charges Operating Capital
for Grants and Grants and
Expenses Services Contributions Contributions
Governmental activities:

General government 16,820,840 $ 4,316,954 $ 16,576,826 $ 75,696 $ Public safety 71,667,280 5,271,455 1,776,025 -
Community development 18,779,695 2,712,601 10,134,955 14,706,172 Parks and recreation 6,092,428 684,735 - 285,560
Public works 15,874,801 2,715,375 4,644,520 5,212,908
Interest on long-term debt 4,439,565 - - -
Total governmental activities 133,674,609 15,701,120 33,132,326 20,280,336 Business-type activities:

Airport 1,466,634 676,319 359,050 -
Sewer and storm drain 933,692 1,208,511 - -
Storm water - 23,468 - -
Total business-type activities 2,400,326 1,908,298 359,050 - Total Primary Government 136,074,935 $ 17,609,418 $ 33,491,376 $ 20,280,336 $ General revenues:

Taxes:

Property taxes
Sales taxes
Transient occupancy taxes
Franchise taxes
Business license taxes
Utility users tax
Cannabis tax
Miscellaneous revenue
Use of money and property
Transfers in/(out):

Total general revenues and transfers
Change in Net Position
Net Position (Deficit), Beginning
Net Position (Deficit), Ending
Functions/Programs
Program Revenues
-22-
Governmental Business-Type
Activities Activities Total
$ 4,148,636 $ - $ 4,148,636
(64,619,800) - (64,619,800)
8,774,033 - 8,774,033
(5,122,133) - (5,122,133)
(3,301,998) - (3,301,998)
(4,439,565) - (4,439,565)
(64,560,827) - (64,560,827)
- (431,265) (431,265)
- 274,819 274,819
- 23,468 23,468
- (132,978) (132,978)
(64,560,827) (132,978) (64,693,805)
24,417,302 - 24,417,302
36,012,398 - 36,012,398
6,846,103 - 6,846,103
3,693,594 - 3,693,594
10,541,480 - 10,541,480
8,029,444 - 8,029,444
189,024 - 189,024
1,529,779 519,780 2,049,559
6,269,230 - 6,269,230
224,626 (224,626) -
97,752,980 295,154 98,048,134
33,192,153 162,176 33,354,329
23,954,641 17,268,578 41,223,219
$ 57,146,794 $ 17,430,754 $ 74,577,548
Net (Expense) Revenue and Changes in Net Position
City of Hawthorne
Balance Sheet – Governmental Funds
June 30, 2024
The accompanying notes are an integral part of these financial statements. -23-
2009 Street
Hawthorne American Rescue Improvement
General Housing Authority Plan Act (Formerly Nonmajor)
Cash and investments 100,285,574 $ 1,433,969 $ - $ $ -
Cash and investments with fiscal agents - - 10,442,118 - Receivables:

Accounts 9,064,557 198,176 - 3,809,165
Taxes 359,209 - - -
Notes and loans - - - -
Interest - 551,433 58,350 -
Leases 5,860,882 - - -
Due from Successor Agency - - - -
Due from other funds 6,419,497 - - -
Prepaid expenses - - - -
Inventories 70,471 - - -
Total assets $ 1,632,145 122,611,623 $ $ 10,500,468 $ 3,809,165 Liabilities:

Accounts payable $ 2,035,924 $ 102,263 $ 303,465 $ 1,400,329 Accrued liabilities 1,439,164 19,112 - 39,137
Unearned revenue - 796,896 9,363,659 928,898
Deposits payable 3,966,735 - - -
Due to other funds - 124,170 - 483,208
Total liabilities 7,441,823 1,042,441 9,667,124 2,851,572 Unavailable revenue - 156,776 - 2,547,565
Lease related 5,696,127 - - -
Total deferred inflows of resources 5,696,127 156,776 - 2,547,565 Nonspendable 70,471 - - -
Restricted 36,529 432,928 833,344 -
Unassigned 109,366,673 - - (1,589,972)
Total fund balances 109,473,673 432,928 833,344 (1,589,972) Total liabilities, deferred inflows of
resources and fund balances $ 1 122,611,623 $ ,632,145 $ 10,500,468 $ 3,809,165 Special Revenue Funds

LIABILITIES, DEFERRED INFLOWS OF
Deferred Inflows of Resources:

Fund Balances (Deficit):

ASSETS

RESOURCES AND FUND BALANCES
-24-
Nonmajor Total
Governmental Governmental
Funds Funds
$ 40,087,262 $ 141,806,805
10,442,124 6
6,900,033 19,971,931
10,761 369,970
63,529 63,529
210,953 820,736
5,860,882 -
350,503 350,503
6,419,497 -
88,000 88,000
- 70,471
$ 47,711,047 $ 186,264,448
$ 6,649,483 $ 10,491,464
100,285 1,597,698
2,840,177 13,929,630
69,822 4,036,557
5,812,119 6,419,497
15,471,886 36,474,846
4,950,587 7,654,928
5,696,127 -
4,950,587 13,351,055
88,000 158,471
33,846,726 35,149,527
(6,646,152) 101,130,549
27,288,574 136,438,547
$ 47,711,047 $ 186,264,448
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City of Hawthorne
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position June 30, 2024
The accompanying notes are an integral part of these financial statements. -25-
Fund balances of governmental funds $ 136,438,547
Amounts reported for governmental activities in the statement of net position are different because:

Capital assets net of depreciation/amortization have not been included as financial resources of the governmental funds. This amount excludes capital assets reported in the internal service funds. 169,919,289
Deferred outflows and inflows of resources related to pensions have not been reported in the governmental funds. These amounts exclude pension related deferred outflow and inflows reported in the internal service funds.

Pension related deferred outflows of resources $ 38,452,685 Pension related deferred inflows of resources (13,511,626) Other post-employment benefits related deferred outflows of resources 17,799,676 Other post-employment benefits related deferred inflows of resources (33,343,680) 9,397,055 Long-term liabilities are not due and payable in the current period and are not reported in the governmental funds.

Bonds/Lease payable, net (128,193,600)
Compensated absences (8,026,448)
Net pension liability (31,441,816)
Other post-employment benefits obligation (100,619,074) (268,280,938) Governmental funds report the effect of gains or losses on debt refundings when the debt is first issued, whereas these amounts are deferred and amortized in the statement of activities.

Unamortized loss on defeasance of debt 221,379
Unavailable revenues are not available to pay for current expenditures, therefore, are deferred in the governmental funds but are recognized as revenues in the statement of activities 7,654,928
Accrued interest payable for the interest due on long-term debt has not been reported in the governmental funds. (548,361)
Internal service funds are used to charge the cost of activities to individual funds.

The assets and liabilities are included in governmental activities in the statement of net position. 2,344,895
Net position of governmental activities $ 57,146,794
City of Hawthorne
Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds
For the Fiscal Year Ended June 30, 2024
The accompanying notes are an integral part of these financial statements. -26-
2009 Street
Hawthorne American Rescue Improvement
General Housing Authority Plan Act (Formerly Nonmajor)
Revenues
Taxes 93,065,191 $ - $ - $ - $
Licenses and permits 1,756,594 - - -
Intergovernmental 1,864,291 11,194,536 10,938,118 2,310,287 Charges for services 4,206,780 695,688 - -
Fines and forfeitures 2,707,336 - - -
Use of money and property 4,612,450 93 428,240 241
Contributions 200,000 - - -
Miscellaneous 1,887,664 15,876 - -
Total revenues 110,300,306 11,906,193 11,366,358 2,310,528 Expenditures
Current:

General government 14,813,594 - 3,574,760 -
Public safety 56,452,918 - - -
Community development 3,453,512 11,823,928 - -
Parks and recreation 4,758,783 2,138 - -
Public works 1,878,545 - - 4,859,962
Capital outlay 3,763,382 - - -
Debt service:

Principal retirement - - - -
Interest and fiscal charges - - - -
Total expenditures 85,120,734 11,826,066 3,574,760 4,859,962 Excess (deficiency) of revenues
over (under) expenditures 25,179,572 80,127 7,791,598 (2,549,434) Other Financing Sources (Uses)
Transfers in 17,377,354 - - -
Transfers out (27,175,598) (120,327) (7,363,358) -
Total other financing sources (uses) (9,798,244) (120,327) (7,363,358) - Net changes in fund balances 15,381,328 (40,200) 428,240 (2,549,434) Fund Balances (deficit)
Beginning fund Balance, previously reported 94,092,345 473,128 405,104 - Adjustment - change from nonmajor to major - - - 959,462 Beginning 94,092,345 473,128 405,104 959,462
Ending $ 109,473,673 $ 432,928 $ 833,344 $ (1,589,972)
Special Revenue Funds
City of Hawthorne
Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds

-27-
Nonmajor Total
Governmental Governmental
Funds Funds
$ 93,641,913 576,722 $
2,035,110 278,516
19,694,385 46,001,617
214,639 5,117,107
1,312,982 4,020,318
1,982,024 7,023,048
- 200,000
718,880 2,622,420
24,778,148 160,661,533
944,352 19,332,706
1,609,850 58,062,768
4,256,771 19,534,211
543,119 5,304,040
7,472,261 14,210,768
11,859,664 15,623,046
5,904,300 5,904,300
4,578,803 4,578,803
37,169,120 142,550,642
(12,390,972) 18,110,891
14,518,126 31,895,480
(1,851,913) (36,511,196)
12,666,213 (4,615,716)
275,241 13,495,175
27,972,795 122,943,372
(959,462) -
27,013,333 122,943,372
$ 27,288,574 $ 136,438,547
City of Hawthorne
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Fiscal Year Ended June 30, 2024
The accompanying notes are an integral part of these financial statements. -28-
Net changes in fund balances - total governmental funds $ 13,495,175 Amounts reported for governmental activities in the statement of activities are different because:
statement of activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount of capital assets and depreciation expense recorded in the current period.

This amount excludes capital acquisitions/disposals and depreciation expense reported in the internal service fund.

Capital additions $ 26,271,710
Capital asset disposals, net (374,789)
Depreciation/amortization expense (5,174,013) 20,722,908 Certain revenues in the governmental funds are deferred inflows of resources because they are measurable but not available under the modified accrual basis of accounting. However, the revenues are included on the accrual basis used in the government-wide statements. This amount represents the change during the year:

Grants and other reimbursement revenue 5,537,123
Principal payments on long-term debt 5,214,300
Principal payments of capital leases 15,964
Principal payments of notes payable 690,000
Loan forgiveness on notes payable 355,000
Principal payments of subscription liability 72,892 6,348,156 Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds:

Change in compensated absences (106,129)
Changes in pension related items (19,024,645)
Changes in other post-employment benefits related items 1,647,000 Change in accrued interest 30,048
Amortization of bond discount (8,498)
Amortization of bond premium 163,951
Amortization of deferred amount on refunding (46,263) (17,344,536) Internal service funds are used by management to charge the costs of certain activities to individual funds. The net revenue (expense) of the internal service funds is included in the statement of activities. 4,433,327 Changes in net position of governmental activities $ 33,192,153 Governmental funds report capital outlay as expenditures. However in the The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long term debt consumes the current financial resources of governmental funds.

Neither transaction, however, has an effect on net position:

City of Hawthorne
Statement of Net Position
Proprietary Funds
June 30, 2024
The accompanying notes are an integral part of these financial statements. -29-
Governmental
Activities -
Sewer and Internal Service
Airport Storm Drain Storm Water Total Funds
Current assets:

Cash and investments 1,255,410 $ 4,175,426 $ 311,584 $ 5,742,420 $ 7,261,026 $ Receivables:

Accounts 140,424 163,336 - 303,760 25,518
Leases 17,143,989 - 17,143,989 - -
Interest 36,888 - - 36,888 -
Inventories - - - - 14,311
Total current assets 18,576,711 4,338,762 311,584 23,227,057 7,300,855 Noncurrent assets:

Capital assets, not depreciated/amortized 564,491 154,408 - 718,899 - Capital assets, net of depreciation/amortization 7,100,093 3,651,940 10,752,033 - 2,403,474 Total noncurrent assets 7,664,584 3,806,348 11,470,932 - 2,403,474 Total assets 26,241,295 8,145,110 311,584 34,697,989 9,704,329 Deferred Outflows of Resources
Pension related 414,577 322,587 - 737,164 631,807
Current liabilities:

Accounts payable 46,061 231,874 - 277,935 685,228
Accrued liabilities 20,587 20,007 - 40,594 21,365
Unearned revenue 189,074 - - 189,074 -
Deposits payable 20,264 - - 20,264 -
Compensated absences 24,003 - - 24,003 8,954
Claims and judgements payable - - - - 1,318,942
SBITA payable - - - - 11,506
Total current liabilities 299,989 251,881 - 551,870 2,045,995 Compensated absences 96,012 - - 96,012 35,815
Claims and judgements - - - - 5,275,768
Net pension liability 410,419 319,351 - 729,770 625,470 Total noncurrent liabilities 506,431 319,351 - 825,782 5,937,053 Total liabilities 806,420 571,232 1,377,652 - 7,983,048 Deferred Inflows of Resources
Pension related 5,376 4,183 - 9,559 8,193
Lease related 16,617,188 - 16,617,188 - -
Total deferred inflows of resources 16,622,564 4,183 16,626,747 - 8,193 Net position (Deficit)
Net investment in capital assets 7,664,584 3,806,348 11,470,932 - 2,391,968 Unrestricted 1,562,304 4,085,934 311,584 5,959,822 (47,073) Total net position $ 9,226,888 $ 7,892,282 $ 311,584 $ 17,430,754 $ 2,344,895 Liabilities
Noncurrent liabilities:

Assets
Non-major Funds
City of Hawthorne
Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds
For the Fiscal Year Ended June 30, 2024
The accompanying notes are an integral part of these financial statements. -30-
Governmental
Activities -
Sewer and Internal Service
Airport Storm Drain Storm Water Total Funds
Operating Revenues
Sales and service charges $ 676,319 $ 1,208,511 $ 23,468 $ 1,908,298 $ 8,795,555 Intergovernmental 359,050 - - 359,050 -
Miscellaneous 519,780 - - 519,780 88,480
Total operating revenues 1,555,149 1,208,511 23,468 2,787,128 8,884,035 Operating Expenses
Public safety - - - - 120,593
Administration and general 857,146 630,485 - 1,487,631 1,517,690 Materials and supplies 36,176 12,101 - 48,277 596,187
Contractual services 161,802 113,645 - 275,447 6,731,167 Cost of sales and services 53,244 86,650 - 139,894 -
Depreciation 358,266 90,811 - 449,077 325,413
Total operating expenses 1,466,634 933,692 - 2,400,326 9,291,050 Operating income (loss) 88,515 274,819 23,468 386,802 (407,015) Change in net position (deficit) before
transfers 88,515 274,819 23,468 386,802 (407,015)
Transfers
Transfers in - - - - 5,000,000
Transfers out (119,231) (105,395) (224,626) - (159,658) Total transfers (119,231) (105,395) - (224,626) 4,840,342 Change in net position (30,716) 169,424 23,468 162,176 4,433,327 Net Position (Deficit)
Beginning 9,257,604 7,722,858 288,116 17,268,578 (2,088,432) Ending $ 9,226,888 $ 7,892,282 $ 311,584 $ 17,430,754 $ 2,344,895 Non-major Funds
City of Hawthorne
Statement of Cash Flows
Proprietary Funds
For the Fiscal Year Ended June 30, 2024
The accompanying notes are an integral part of these financial statements. -31-
Governmental
Activities
Internal
Sewer and Service
Airport Storm Drain Storm Water Total Funds
Cash flows from operating activities
Cash received from customers and users 1,416,422 $ 1,099,942 $ 23,468 $ 2,539,832 $ 8,865,111 $ Cash paid to suppliers for goods and services (543,140) (498,508) - (1,041,648) (7,242,078) Cash paid to employees for services (360,123) (226,542) - (586,665) (330,386) Net cash provided (used) by operating activities 513,159 374,892 23,468 911,519 1,292,647 Cash flows from noncapital financing activities
Transfer from debt service funds - - - 5,000,000 -
Transfer to debt service funds (119,231) (105,395) - (224,626) (159,658) Net cash used for noncapital financing activities (119,231) (105,395) - (224,626) 4,840,342 Cash flows from capital and related financing activities Acquisition and construction of capital assets (449,327) (174,222) - (623,549) (1,060,427) Payments on lease - - - - (11,260)
Net cash used for capital and related financing activities (449,327) (174,222) - (623,549) (1,071,687) Net increase (decrease) in cash and cash equivalents (55,399) 95,275 23,468 63,344 5,061,302 Cash and cash equivalents, beginning of year 1,310,809 4,080,151 288,116 5,679,076 2,199,724 Cash and cash equivalents, end of year $ 1,255,410 $ 4,175,426 $ 311,584 $ 5,742,420 $ 7,261,026 Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:

Operating income (loss) $ 88,515 $ 274,819 $ 23,468 $ 386,802 $ (407,015) Adjustments to reconcile operating income (loss) to
net cash provided (used) by operating activities:

Depreciation/amortization 358,266 90,811 - 449,077 325,413 (Increase) decrease in assets/deferred outflows:

Accounts receivable (47,541) (108,569) - (156,110) (18,924) Lease receivable 317,254 - - 317,254 -
Deferred outflows of resources - pension 38,381 29,865 - 68,246 58,490 Increase (decrease) in liabilities/deferred inflows:

Accounts payable 16,464 (17,706) - (1,242) 175,740
Accrued liabilities 1,287 4,643 - 5,930 -
Due to other governments - - - - (6,799)
Claims and judgements payable - - - 1,017,065 -
Unearned revenue 83,408 - - 83,408 -
Compensated absences 19,134 - - 19,134 (49,196)
Net pension liability 140,592 109,396 - 249,988 214,259 Deferred inflows of resources - pension (10,753) (8,367) - (19,120) (16,386) Deferred inflows of resources - leases (491,848) - - (491,848) - Total adjustments 424,644 100,073 - 524,717 1,699,662
Net cash provided (used) by operating activities $ 513,159 $ 374,892 $ 23,468 $ 911,519 $ 1,292,647 Non-major Funds
City of Hawthorne
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2024
The accompanying notes are an integral part of these financial statements. -32-
Successor Agency
to the Dissolved
Redevelopment
Agency Community
Private Purpose Facilities Districts
Trust Fund Custodial Fund
Assets
Cash and investments 2,313,333 $ 1,015,162 $
Receivables:

Taxes - 13,125
Interest 12,062 4,575
Restricted assets:

Cash and investments with fiscal agents 2,053 4,982,492 Total assets 2,327,448 6,015,354
Deferred Outflows of Resources
Deferred amount on refunding 885,265 -
Liabilities
Accounts payable 21,216 26,889
Accrued liabilities 4,101 -
Interest payable 290,583 -
Due to City of Hawthorne 350,503 -
Long-term liabilities:

Due within one year 1,810,000 -
Due in more than one year 51,915,345 -
Total liabilities 54,391,748 26,889
Fiduciary Net Position (Deficit)
Restricted for other agencies - 5,988,465
Unrestricted net position (51,179,035) -
Total fiduciary net position (51,179,035) $ 5,988,465 $ City of Hawthorne
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Fiscal Year Ended June 30, 2024
The accompanying notes are an integral part of these financial statements. -33-
Successor Agency
to the Dissolved
Redevelopment
Agency Community
Private-Purpose Facilities Districts
Trust Fund Custodial Fund
Additions
Taxes 4,492,822 $ - $
Use of money and property 56,495 153,784
Miscellaneous revenue 10,400 -
Tax collection for other agencies - 2,985,665
Contribution collection for other agencies 2,681,750 2,553,251 Writeoff of debt disallowed by DOF 46,422,894 -
Total additions 53,664,361 5,692,700
Deductions
Administrative expenses 675,962 81,430
Contractual services 519,650 -
Contribution due to other agencies 2,827,815 -
Debt service:

Principal payments - 1,700,000
Interest and fiscal charges 693,178 1,736,222
Payment to refunded bond escrow - 687,869
Total deductions 4,716,605 4,205,521
Change in fiduciary net position 48,947,756 1,487,179
Net Position (Deficit)
Beginning (100,126,791) 4,501,286
Ending (51,179,035) $ 5,988,465 $
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City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-34-
1) ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Entity
The City of Hawthorne was incorporated on July 25, 1922, as a general law city and operates under a Council/City Manager form of government. It is governed by an elected five-member council.

As required by generally accepted accounting principles, these financial statements present the financial activities of the City of Hawthorne (the primary government) and its component units.

The component units discussed below are included in the City's reporting entity because of the significance of their operational or financial relationship with the City. These entities are legally separate from each other. However, the City of Hawthorne’s elected officials have a continuing full or partial accountability for fiscal matters of the other entities. The financial reporting entity consists of: 1) the City, 2) organizations for which the City is financially accountable, and 3) organizations for which the nature and significance of their relationship with the City are such that exclusions would cause the City's financial statements to be misleading or incomplete.

An organization is fiscally dependent on the primary government if it is unable to adopt its budget, levy taxes or set rates or charges, or issue bonded debt without approval by the primary government. In a blended presentation, component units’ balances and transactions are reported in a manner similar to the balances and transactions of the City. Component units are presented on a blended basis when the component unit's body is substantially the same as the City’s or the component unit provides services almost entirely to the City.

Housing Authority of the City of Hawthorne (Hawthorne Housing Authority) The Housing Authority of the City of Hawthorne is a public agency created by the City in 1984 to administer housing assistance programs for qualified low-income residents. The Housing Authority is governed by the City Council. The Housing Authority's administrative functions are performed by City employees. The financial activity of the Housing Authority is included in the City's financial statements as the Housing Authority Special Revenue Fund. Separate financial statements were not prepared for the Housing Authority of the City of Hawthorne.

Parking Authority of the City of Hawthorne (Parking Authority) The Parking Authority is a public financing agency created by the City to provide parking facilities for the City's Redevelopment Plaza Project. The City Council serves as the Parking Authority's governing board and is, therefore, responsible for the fiscal and administrative activities of this related entity. The financial activity of the Parking Authority is reported in the City's financial statements in the Community Facilities District Fund which is a custodial fund. Separate financial statements were not prepared for the Parking Authority.

City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-35-
1) ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
Description of Entity, (continued)
Hawthorne Public Financing Authority (Authority)
The Authority was formed as a result of a joint powers agreement between the City of Hawthorne (the City) and the Community Redevelopment Agency of the City of Hawthorne (the Agency).

The purpose of the Authority is to provide financing for the acquisition, construction and improvements of capital assets and infrastructure, working capital requirements, or liability or other insurance programs of any local Agency. The Authority is governed by a Board of Directors, composed of the five members of the City’s City Council. The financial activity of the Authority is reported in the City’s financial statements as the Hawthorne Public Financing Authority Debt Service Fund. Separate financial statements were not prepared for the Hawthorne Public Financing Authority.

Government-wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the non-fiduciary activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements, however, interfund services provided and used are not eliminated in the process of consolidation. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. Likewise, the primary government is reported separately from certain legally separate component units for which the primary government is financially accountable.

The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment.

Program revenues include: 1) charges to customers or applicants who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment, and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Internally dedicated resources, such as taxes, are reported as general revenues rather than program revenues.

Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements.

City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-36-
1) ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
Measurement Focus, Basis of Accounting and Financial Statement Presentation Measurement focus is commonly used to describe the types of transactions and events that are reported in a fund's operating statement. Once it has been determined whether a fund is to measure changes in total economic resources or changes in current financial resources, the next issue to be addressed is the timing of the recognition of transactions and events. The technical term that describes the criteria governing the timing of the recognition of transactions and events is basis of accounting.

The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 90 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.

Property taxes, franchise taxes, licenses and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the government.

Grants, entitlements or shared revenues recorded in governmental funds are recognized as revenue in the accounting period when they become susceptible to accrual, i.e., both measurable and available (modified accrual basis). Grants received before the revenue recognition criteria have been met are reported as unearned revenue, a liability account. Such resources not received are reported as a receivable if the revenue recognition criteria have been met.

City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-37-
1) ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
Measurement Focus, Basis of Accounting and Financial Statement Presentation, (continued)
The City reports the following major governmental funds:
 The General Fund is the City's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.
 The Hawthorne Housing Authority Special Revenue Fund is used to account for the housing assistance programs for the qualified low-income residents.  The American Rescue Plan Act Fund is used to provide relief to the City for the negative impacts caused from the COVID-19 Pandemic.
 The 2009 Street Improvements Fund is used to account for the City's roadway improvement projects from street and intersection widening to pavement rehabilitations/reconstructions, upgrade or replacement of traffic signals, improvement of street grading and drainage and concrete improvement including ADA accessibility as well as sidewalks and curbs/gutters throughout the City. Funding for such projects are varied and usually received through competitive grants based on availability.

The City's fund structure also includes the following fund types:

Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditure for specific purposes.

Fiduciary Funds are used by the City to account for resources held and administered under trust or similar arrangement for the benefits of individuals, private organizations, or other governments. These funds report a Statement of Fiduciary Net Position and a Statement of Changes in Fiduciary Net Position. The City has the following Fiduciary Funds:
 Custodial Fund - This fund accounts for money and property held by the City as a custodian. This fund reports the assets, liabilities, and activities of the Community Facilities Districts. The Custodial Funds account for assets held for specific uses that are not part of the City's operating activities; specifically, monies held by the City as an agent for property owners with special assessments and monies collected from individuals, private organizations or other governments who have made special deposits with the City for various purposes.
 Successor Agency Private Purpose Trust Fund - Private Purpose Trust Fund is a fiduciary fund type used by the City to report trust arrangements under which principal and income benefit other governments. This fund reports the assets, liabilities, and activities of the Successor Agency to the Dissolved Hawthorne Redevelopment Agency.

City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-38-
1) ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
Measurement Focus, Basis of Accounting and Financial Statement Presentation, (continued)
The City reports the following major proprietary funds:
 The Airport Fund accounts for the operation of the City's airport, which is operated in a manner similar to a private airport.

Additionally, the City reports the following fund type:
 Internal Service Funds account for financial transactions related to repair, replacement and maintenance of City-owned equipment and the City's self-insurance programs. These services are provided to other departments or agencies of the City on a cost reimbursement basis.

The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles (GAAP).

Use of Estimates
The preparation of basic financial statements in conformity with accounting principles generally accepted in the United States of America requires City management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenditures during the reporting period. Actual results could differ from those estimates.

The remainder of this page has been left blank intentionally.

City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-39-
1) ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
Fund Balance Reporting
Fund balance classifications are comprised of a hierarchy based primarily on the extent to which a government is bound to observe constraints imposed upon the use of the resources reported in governmental funds, described as follows:

Nonspendable fund balance includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact. The City’s nonspendable fund balance represents inventories, prepaid items, and long-term advances, the collectability of which is not assured.

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

Committed fund balance includes amounts that can be used only for the specific purposes determined by a formal action of the City’s highest level of decision-making authority. The City does not have committed fund balances as of June 30, 2024.

Assigned fund balance includes funds that are set aside for specific purposes by the City’s highest level of decision-making authority or a body or official that has been given the authority to assign funds. The City does not have assigned fund balances as of June 30, 2024.

Unassigned fund balance is the residual classification for the City’s fund balance and includes all spendable amounts not contained in the other classifications. This category also provides the resources necessary to meet unexpected expenditures and revenue shortfalls. The General Fund is the only fund that reports a positive unassigned fund balance amount.

The City Council, as the City’s highest level of decision-making authority, may commit fund balance for specific purposes pursuant to constraints imposed by formal actions taken.

Committed amounts cannot be used for any other purpose unless the City Council removes or changes the specific use through the same type of formal action taken to establish the commitment. The City Council considers a resolution to constitute a formal action of the City Council for the purposes of establishing committed fund balance.

The City Council delegates the authority to assign fund balance to the City Manager for purposes of reporting in the annual financial statements.

City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-40-
1) ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
Fund Balance Reporting, (continued)
The City considers the restricted fund balances to have been spent when an expenditure is incurred for purposes for which both unrestricted and restricted fund balance is available. The City considers unrestricted fund balances to have been spent when an expenditure is incurred for purposes for which amounts in any of the unrestricted classifications of fund balance could be used. When expenditures are incurred for purposes for which amounts in any of the unrestricted fund balance classifications could be used, it is the policy of the City to reduce the committed amounts first, followed by assigned amounts, and then unassigned amounts.

Net Position
Classifications of Net Position are as follows:

Net investment in capital assets - This represents the City's total investment in capital assets, net of accumulated depreciation and outstanding debt obligations related to those capital assets.

Restricted net position - Restricted net position include resources in which the City is legally or contractually obligated to spend resources in accordance with restrictions imposed by external third parties or by enabling legislation adopted by the City.

Unrestricted net position - Unrestricted net position represents resources available to be used for transactions relating to the general operations of the City, and may be used at the discretion of the governing board, as designated, to meet current expenses or for specific future purposes.

Sometimes the City will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted net position and unrestricted net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the government’s policy to consider restricted net position to have been depleted before unrestricted net position is applied.

Implementation of New Pronouncement
GASB Statement No. 100 – Accounting Changes and Error Corrections: The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. The requirements of this Statement are effective for fiscal years beginning after December 15, 2023.

City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-41-
1) ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
Cash and Cash Equivalents
For purpose of the statement of cash flows, the City considers cash and cash equivalents as short-term, highly liquid investments that are both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. The City follows the practice of pooling cash and investments of all funds. Since cash and investments are pooled, the City utilizes the assumption that cash and investments in the Enterprise and Internal Service Funds are cash and cash equivalents.

Investments
Investments for the City as well as for its component units are reported at fair value, and all investment income; including changes in the fair value of investments, is recognized as revenue in the operating statements. The City's policy is generally to hold investments until maturity or until fair values equal or exceed cost. The State Treasurer's Investment Pool operates in accordance with appropriate state laws and regulations. The reported value of the pool is the same as the fair value of the pool shares.

Receivables and Payables
Activities between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either due to/from other funds (i.e., the current portion of interfund loans) or advances to/from other funds (i.e., the non-current portion of interfund loans). Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as internal balances.

Advances to Successor Agency, as reported in the fund financial statements, are offset by unavailable revenue account in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources.

All trade and property tax receivables are shown net of allowance for uncollectible amounts.

City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-42-
1) ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
Inventories
Inventories of materials and supplies are carried at cost on a first-in, first-out basis. The City uses the consumption method of accounting for inventories. Special reporting treatments are also applied to governmental fund inventories to indicate that they do not represent available spendable resources, even though they are a component of net current assets. Such amounts are generally offset by fund balance nonspendable accounts.

Prepaid Costs and Land Held for Resale
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements, using the consumption method. Land purchased for resale is capitalized as inventory at acquisition costs or net realizable value if lower. The fund balances in the governmental funds have been classified as nonspendable for amounts equal to prepaid costs and land held for resale in the fund-level statements since these amounts are not available to the City's current operations.

Capital Assets
Capital assets, which include property, plant, equipment, intangible assets and infrastructure assets (e.g., roads, bridges, sidewalks and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements.

Capital assets are defined by the City as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of five years. Such assets are recorded at historical cost if purchased or constructed. Donated capital assets are recorded at the estimated acquisition value at the time of acquisition. The City has reported its general infrastructure assets which include streets, sidewalks, storm drains, curbs and gutters, handicap ramps and trails.

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

Major outlays for capital assets and improvements are capitalized as projects or as constructed.

Interest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalized value of the assets constructed.

City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-43-
1) ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
The provision for depreciation of capital assets of the primary government, as well as its component units, is computed using the straight-line method over the following estimated useful lives:

Years
Curbs and gutters 40
Parks 50
Sewer 40
Sidewalks 40
Streets 50
Traffic signs and signals 30
Machinery and equipment 5-50
Vehicles 5
Buildings 40
Deferred Outflows and Inflows of Resources
A deferred outflow of resources is defined as a consumption of net assets that applies to future periods. A deferred inflow of resources is defined as an acquisition of net assets that applies to future periods Refer to Note 16 for the list of deferred inflows and deferred outflows of resources the City has recognized as of June 30, 2024, excluding pension and OPEB related amounts.

Claims and Judgments
The City is partially self-insured for general liability and workers' compensation claims. The City records estimated liabilities for such claims filed or estimated to be filed for incidents which have occurred. The City's claims and judgments payable are recorded in the City's Insurance Reserve Internal Service Fund.

Employee Compensated Absences
Vacation pay is payable to employees at the time a vacation is taken or upon termination of employment. Employees may accrue a maximum of half their annual accrual rate. Upon termination an employee will be paid for any unused accrued vacation pay. Sick leave is payable when an employee is unable to work because of illness. Upon retirement, employees are entitled to receive the full value of their accumulated sick leave time.

City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-44-
1) ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
Employee Compensated Absences, (continued)
Only the short-term liability for compensated absences (the amount due to employees for future absences, such as vacation and compensatory time, which are attributable to services already rendered) is reported as a current liability in the governmental funds and only if they have matured, for example, as a result of employee resignations and retirements; the long-term liability is reported in the government-wide financial statements. The short-term liability is the amount that will be liquidated with current financial resources and is expected to be paid during the next fiscal year. All of the liability for compensated absences applicable to proprietary funds is reported in those funds.

The long-term portion of compensated absences payable has been accrued for the Governmental Activities on the Government-Wide Financial Statement. Also, compensated absences are generally liquidated by the General Fund. There is no fixed payment schedule to pay these liabilities.

Property Tax Revenue
Property tax revenue is recognized in the fiscal year for which the taxes have been levied providing they become available. Available means then due, or past due and receivable within the current period and collected within the current period or expected to be collected soon enough thereafter (not to exceed 60 days) to be used to pay liabilities of the current period. The County of Los Angeles collects property taxes for the City. Tax liens attach annually as of 12:01 A.M. on the first day in January preceding the fiscal year for which the taxes are levied. Taxes are levied on both real and personal property as it exists on that date. The tax levy covers the fiscal period July 1 to June 30. All secured personal property taxes and one-half of the taxes on real property are due November 1; the second installment is due February 1. All taxes are delinquent, if unpaid, on December 10 and April 10, respectively. Unsecured personal property taxes become due on March 1 each year and are delinquent, if unpaid, on August 31.

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

City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-45-
1) ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
GAAP requires that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used.

Valuation Date (VD) June 30, 2022
Measurement Date (MD) June 30, 2023
Measurement Period (MP) July 1, 2022 to June 30, 2023
Other Post-Employment Benefits (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s plan (OPEB Plan) and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined on the same basis. For this purpose, benefit payments are reported at fair value.

GAAP requires that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used.

Valuation Date (VD) June 30, 2023
Measurement Date (MD) June 30, 2023
Measurement Period (MP) July 1, 2022 to June 30, 2023
Upcoming Accounting Pronouncements
GASB Statement No. 101 – Compensated Absences: The objective of this statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. The requirements of this statement are effective for fiscal years beginning after December 15, 2023.

Statement No. 102, Certain Risk Disclosures: The primary objective of this Statement is to provide users of government financial statements with essential information about risks related to a government’s vulnerabilities due to certain concentrations or constraints. The requirements of this statement are effective for fiscal years beginning after June 15, 2024.

Statement No. 103, Financial Reporting Model Improvements: The objective of this Statement is to improve key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing a government’s accountability. The requirements of this statement are effective for fiscal years beginning after June 15, 2025.

Statement No. 104, Disclosure of Certain Capital Assets: The objective of this statement is to provide users of government financial statements with essential information about certain types of capital assets. The requirements of this statement are effective for fiscal years beginning after June 15, 2025.

City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-46-
2) CASH AND INVESTMENTS
Cash and investments are classified in the accompanying financial statements as follows:

Statement of net position:

Cash and investments $ 154,810,251
Cash and investments with fiscal agents 10,442,124
Statement of fiduciary net position:

Successor Agency to the Dissolved RDA
Cash and investments 2,313,333
Cash and investments with fiscal agents 2,053
Community Facilities District
Cash and investments 1,015,162
Cash and investments with fiscal agents 4,982,492
Total $ 173,565,415
Cash and investments as of June 30, 2024, consisted of the following:

Cash and cash equivalents:

Petty cash 3,489 $
Demand deposits - City 79,095,506
Demand deposits - Successor Agency 545,426
Total cash and cash equivalents 79,644,421
Investments:

Local Agency Investment Fund 73,942,294
Negotiable Certificates of Deposit 6,599,361
U.S. Treasury Securities 5,564,805
U.S. Government Bonds 2,364,978
Medium term corporate notes 465,005
Held by Bond Trustee 4,984,551
Total investments 93,920,994
Total 173,565,415 $
The City maintains a cash and investment pool that is available for use for all funds. Each fund type's position in the pool is reported on the combined balance sheet as cash and investments.

The City has adopted an investment policy, which authorizes it to invest in various investments.

City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-47-
2) CASH AND INVESTMENTS, (continued)
Investments
Under provision of the City's investment policy, and in accordance with the California Government Code, the following investments are authorized:

Authorized by Maximum Maximum
Investment Maximum Percentage Investment
Authorized Investment Type Policy Maturity of Portfolio In One Issuer U.S. Treasury Obligation Yes 5 years None None
U.S. Agency Securities Yes 5 years 75% 30%
Banker's Acceptances Yes 180 days 40% 30%
Commercial Paper Yes 270 days 25% 10%
Certificate of Deposit Yes 5 years None None
Medium-Term Notes Yes 5 years 30% 5%
Money Market Mutual Funds Yes N/A 20% None
Local Agency Investment Fund Yes N/A None $75 million
Negotiable Certificates of Deposits Yes 5 years 30% None Mutual Funds Yes N/A 20% 10%
Local Government Investment Pool Yes N/A 20% None
Supranational Yes 5 years 30% None
Asset Backed Securities Yes N/A 20% 10%
Investments Authorized by Debt Agreements
The above investments do not address investment of debt proceeds held by a bond trustee.

Investments of debt proceeds held by a bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City's investment policy.

Investments in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. LAlF is overseen by the Local Agency Investment Advisory Board, which consists of five members, in accordance with State statute. The State Treasurer's Office audits the fund annually. The fair value of the portion in the investment pool is the same as the value of the pool shares.

City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-48-
2) CASH AND INVESTMENTS, (continued)
Credit Risk
The City's investment policy limits investments in commercial paper to those rated "A-1” or higher by Standard and Poor's (S&P) or by Moody's. Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization.

Presented below is the minimum rating required by the City’s Investment Policy and the actual rating as of June 30, 2024:

Minimum
Legal
Investment Type Amount Rating Aaa-A Not Rated
External Investment Pools -
Local Agency Investment Fund $ 73,942,294 N/A - $ $ 73,942,294 Negotiable Certificates of Deposits 6,599,361 N/A 6,599,361 - U.S. Treasury Securities 5,564,805
U.S. Government Bonds 2,364,978 N/A 2,364,978 -
Medium term corporate notes 465,005 N/A 465,005 -
Held by Bond Trustee:

Money Market Mutual Funds 4,984,551 N/A 4,984,551 -
Total Investments $ 93,920,994 $ 9,429,344 $ 78,926,845 Custodial Credit Risk
The California Government Code requires California financial institutions to secure a City's deposits by pledging government securities with a value of 110% of a City's deposits. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of a City's total deposits. The City Treasurer may waive the collateral requirement for deposits which are fully insured up to $250,000 by the FDIC. The collateral for deposits in federal and state chartered banks is held in safekeeping by an authorized Agent of Depository recognized by the State of California Department of Banking. These securities are physically held in an undivided pool for all California public agency depositors.

Under Government Code Section 53655, the placement of securities by a financial institution with an "Agent of Depository" has the effect of perfecting the security interest in the name of the local governmental agency. Accordingly, all collateral held by California Agents of Depository are considered to be held for, and in the name of, the local governmental agency.

The custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover deposits or will not be able to recover collateral securities that are in the possession of an outside party. At June 30, 2024, the City deposits (bank balances) were collateralized under California Law.

City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-49-
2) CASH AND INVESTMENTS, (continued)
Concentration of Credit Risk
The City's investment policy imposes restrictions on the percentage that the City can invest in certain types of investments. As of June 30, 2024, there were no investments in any one issuer that represents 5% or more of the total City’s investments. Investments guaranteed by the U.S. government and investments in mutual funds and external investment pools are excluded from this requirement.

Interest Rate Risk
The City's investment policy limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. The City has elected to use the segmented time distribution method of disclosure for its interest rate risk.

As of June 30, 2024, the City had the following investments and original maturities:

Less than 1 to 3 3 to 5
Investment Types 1 year years years Total
External Investment Pools -
Local Agency Investment Fund 73,942,294 $ - $ $ 73,942,294 - $ Negotiable Certificates of Deposits 1,076,828 5,522,533 6,599,361 - U.S. Treasury Securities 5,564,805 - 5,564,805 -
U.S. Government Bonds 2,364,978 - 2,364,978 -
Medium term corporate notes 465,005 - - 465,005
Held by Bond Trustee:

Money Market Mutual Funds 4,984,551 - 4,984,551 -
Total Investments $ 8,352,516 85,568,478 $ $ 93,920,994 - $ The remainder of this page has been left blank intentionally.

City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-50-
2) CASH AND INVESTMENTS, (continued)
Fair Value Measurements
Generally accepted accounting standards establish a fair value hierarchy consists of three broad levels: Level 1 inputs consist of quoted prices (unadjusted) for identical assets and liabilities in active markets that a government can access at the measurement date, Level 2 inputs consist of inputs other than quoted prices that are observable for an asset or liability, either directly or indirectly, that can include quoted prices for similar assets or liabilities in active or inactive markets, or market-corroborated inputs, and Level 3 inputs have the lowest priority and consist of unobservable inputs for an asset or liability.

The following table presents the balances of the assets measured at fair value on a recurring basis as of June 30, 2024:

Total Level 1 Level 2 Level 3
Negotiable Certificates of Deposit 6,599,361 $ - $ 6,599,361 $ - $ U.S. Treasury Securities 5,564,805 - 5,564,805 -
U.S. Government Bonds 2,364,978 - 2,364,978 -
Medium term corporate notes 465,005 - 465,005 -
Total Investments by Fair Value Level 14,994,149 - $ 14,994,149 $ - $ Not subject to the Fair Value Hierarchy:

Local Agency Investment Fund 73,942,294
Held by Bond Trustee:

Money Market Mutual Funds 4,984,551
Total Investments $ 93,920,994
Fair Value Measurement Using
Investments by Fair Value Level
The remainder of this page has been left blank intentionally.

City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-51-
3) LEASES RECEIVABLE
Government Activities
The City has entered into leases as a Lessor for the use of cell towers, infrastructure and buildings, for a period of 51 to 319 months. The initial lease receivables were recorded in the range between $71,855 to $2,598,160. The lessee is required to make monthly fixed payments in the range between $2,723 to $110,000. The leases have an interest rate in the range between

0.8930% to 3.6500%. The cell towers, infrastructure and buildings estimated useful life have a range between 51 to 319 months as of the contract commencement. The cell towers, infrastructure and buildings have 2 to 3 extension options each for 60 months.

Total lease receivable, deferred inflow of resources and revenue recognized at June 30, 2024 were $5,860,882, $5,696,127 and $498,245, respectively.

Total principal and interest expected to maturity is as follows:

Governmental Activities
Principal Interest Total
Fiscal Year Payments Payments Payments
2025 427,480 $ 147,315 $ 574,795 $
2026 405,582 137,863 543,445
2027 317,418 128,541 445,959
2028 291,095 121,232 412,327
2029 301,244 113,806 415,050
2030 - 2034 1,288,821 458,961 1,747,782
2035 - 2039 1,114,217 297,547 1,411,764
2040 - 2044 1,028,917 161,979 1,190,896
2045 - 2049 686,108 35,892 722,000
Total Remaining Receivable $ 1,603,136 5,860,882 $ 7,464,018 $ The remainder of this page has been left blank intentionally.

City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-52-
4) LEASES RECEIVABLE, (continued)
Business Activities
The City has entered into leases as a Lessor for the use of a HHO/Tarmac Airport, the Hawthorne Municipal Airport and the Zelman Airport, for a period of 234 to 401 months. The initial lease receivables were recorded in the range between $384,836 to $15,910,384. The lessee is required to make monthly fixed payments in the range between $1,500 to $52,348. The leases have an interest rate in the range between 2.3780% to 2.5830%. The Hawthorne Municipal Airport and the Zelman Airport have 2 and 3 extension options, respectively, each for 60 months.

Total lease receivable, deferred inflow of resources and revenue recognized at June 30, 2024 were $17,143,989, $16,617,188 and $491,848, respectively.

Total principal and interest expected to maturity is as follows:

Business-Type Activities
Principal Interest Total
Fiscal Year Payments Payments Payments
2025 325,386 $ 435,852 $ 761,238 $
2026 333,727 427,512 761,239
2027 342,280 418,957 761,237
2028 351,054 410,184 761,238
2029 360,053 401,185 761,238
2030 - 2034 1,943,541 1,862,648 3,806,189
2035 - 2039 2,205,795 1,600,393 3,806,188
2040 - 2044 2,083,974 1,319,504 3,403,478
2045 - 2049 2,178,235 1,052,652 3,230,887
2050 - 2054 2,478,185 752,703 3,230,888
2055 - 2059 2,730,267 416,621 3,146,888
2060 - 2062 1,811,492 73,041 1,884,533
Total Remaining Receivable $ 17,143,989 $ 9,171,252 $ 26,315,241 The remainder of this page has been left blank intentionally.

City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-53-
4) CAPITAL ASSETS
Capital asset activity was as follows for the year ended June 30, 2024:

Governmental activities: Balance Transfers/ Balance
June 30, 2023 Additions Deletions June 30, 2024
Capital assets, not being depreciated/amortized:

Land $ 21,599,187 $ 3,751,579 $ - $ 25,350,766
Construction in progress 1,815,120 15,673,163 (1,176,737) 16,311,546 Total capital assets, not being
depreciated 23,414,307 19,424,742 (1,176,737) 41,662,312 Capital assets, being depreciated/amortized:

Structures and improvements 55,113,808 - - 55,113,808
Machinery and equipment:

City 10,212,636 2,172,916 (24,541) 12,361,011
Equipment replacement/vehicles 6,534,628 883,708 (98,169) 7,320,167 Parking Authority - structures 16,359,554 1,016,409 (176,720) 17,199,243 Infrastructure 170,761,785 4,831,768 175,593,553 -
Right-to-use leases
City 669,759 (669,759) - -
Equipment replacement/vehicles 333,881 (333,881) - -
Right-to-use subscriptions 434,565 (400,042) - 34,523
Investment in joint venture (RCC) 7,305,275 2,612 (503) 7,307,384 Total capital assets, being depreciated/amortized 267,725,891 8,907,413 (1,703,615) 274,929,689 Less accumulated depreciation/amortization for:

Structures and improvements (36,271,521) (1,464,724) - (37,736,245) Machinery and equipment:

City (8,181,181) (547,578) 24,541 (8,704,218)
Equipment replacement/vehicles (4,889,183) (313,906) 274,889 (4,928,200) Parking Authority - structures (16,203,534) (11,121) - (16,214,655) Infrastructure (69,807,249) (2,805,771) - (72,613,020)
Right-to-use leases
City (657,727) (12,032) 669,759 -
Equipment replacement/vehicles (333,881) - 333,881 -
Right-to-use subscriptions (213,480) (11,507) 201,973 (23,014) Investment in joint venture (RCC) (3,717,602) (332,787) 503 (4,049,886) Total accumulated depreciation and amortization (140,275,358) (5,499,426) 1,505,546 (144,269,238) Total capital assets, being
depreciated/amortized, net 127,450,533 3,407,987 (198,069) 130,660,451 Total governmental activities $ 150,864,840 $ 22,832,729 $ (1,374,806) $ 172,322,763 City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-54-
4) CAPITAL ASSETS, (continued)
Business-type activities: Balance Transfers/ Balance
June 30, 2023 Additions Deletions June 30, 2024
Capital assets, not being depreciated:

Land 37,314 $ -$ -$ $ 37,314
Construction in progress 2,963,884 603,735 (2,886,034) 681,585 Total capital assets, not being
depreciated 3,001,198 603,735 (2,886,034) 718,899
Capital assets, being depreciated:

Structures and improvements 3,020,109 - - 3,020,109
Machinery and equipment 28,130 - - 28,130
Infrastructure:

Airport 10,723,022 1,596,375 - 12,319,397
Storm and sewer drain 13,607,629 19,814 1,289,659 14,917,102 Total capital assets, being depreciated 27,378,890 19,814 2,886,034 30,284,738 Less accumulated depreciation for:

Structures and improvements (2,114,399) (51,395) - (2,165,794) Machinery and equipment (28,130) - - (28,130)
Infrastructure:

Airport (5,766,748) (306,871) - (6,073,619)
Storm and sewer drain (11,174,351) (90,811) - (11,265,162) Total accumulated depreciation (19,083,628) (449,077) - (19,532,705) Total capital assets, being
depreciated, net 8,295,262 (429,263) 2,886,034 10,752,033 Total business-type activities $ 11,296,460 $ 174,472 $ - $ 11,470,932 Depreciation/amortization expense was charged to functions/programs of the primary government as follows:

Governmental Activities:

General government 554,063 $
Public safety 1,658,148
Public works 2,729,141
Community development 84,886
Parks and recreation 147,775
Internal service fund 325,413
Total depreciation/amortization expense – governmental activities 5,499,426 $ Business-type Activities:

Structures and improvements - Airport 51,395 $
Infrastructure:

Airport 306,871
Sewer and storm drain 90,811
Total depreciation expense – business-type activities 449,077 $ City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-55-
5) INTERFUND ACTIVITY
The following represents the City’s interfund activity for the fiscal year ended June 30, 2024.

Current Interfund Balances
Current interfund balances arise in the normal course of business and are expected to be repaid shortly after the end of the year. The following is a summary of current interfund balances as of June 30, 2024:

Interfund Balances
Receivable Fund Amount Payable Fund Amount
General Fund 6,419,497 $ Major Funds:

Hawthorne Housing Authority $ 124,170
2009 Street Improvements 483,208
Non-Major Funds:

Street Lighting 143,654
California Office of Traffic Safety 43,323
Local Law Enforcement Block Grant 213,239
Home Grant 527,502
Community Development Block Grant 278,382
Park Improvements 457,307
Leap Grant 300,000
Urban Security Initiative Grant 199,163
Los Angeles CADA 125,658
CA Parks & Recreation
Community Center 186,760
Project Revitalization 448,957
Building Resilient
Infrastructure & Communities 331,539
Recycling Fund 39,525
2016 Pension Obligation Bond 336,939
2019 Pension Obligation Bond 2,180,171
Totals 6,419,497 $ 6,419,497 $
The loans from the General Fund to the major and non-major funds were made to eliminate shortterm cash deficits.

City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-56-
5) INTERFUND ACTIVITY, (continued)
Interfund Transfers
Interfund Transfers
Funds Transfers in Transfers out
Major Funds:

General 17,377,354 $ 27,175,598 $
Hawthorne Housing Authority - 120,327
American Rescue Plan Act - 7,363,358
Non-Major Funds:

Street Lighting - 16,974
Gas Tax - 1,109,825
Street 900,000 203,571
Proposition A - 35,415
MTA Measure M - 34,584
MTA Measure R - 48,163
Proposition C - 16,265
Hawthorne Blvd Mobility Improvement - 232,593
SB2 Planning Grant - 19,515
Housing Asset - 33,239
HOME Grant - 5,977
CDBG - 38,281
MTA Measure W - 57,511
Capital Improvement Fund 4,257,593 -
2016 Refunding Bonds 2,533,738 -
2016 Direct Placement Lease Financing 239,080 -
2019 Pension Obligation Bond 6,587,715 -
Internal Service Funds:

Equipment Replacement 2,000,000 89,664
Hardware Replacement 3,000,000 69,994
Enterprise Funds:

Airport - 119,231
Sewer and Storm Drain - 105,395
Total transfers 36,895,480 $ 36,895,480 $
The transfer to the 2019 Pension Obligation Bond fund was to fund the debt services payments, including $5,412,257 from the General Fund, $102,674 from the Hawthorne Housing Authority Fund, and the non-major funds for the remainder
City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-57-
5) INTERFUND ACTIVITY, (continued)
Interfund Transfers, (continued)
The transfer from the General Fund in the amount of $237,384 consists of debt service payments on the 2007 SBPRCA Series B bonds/2016 Direct Placement Leasing.

The transfer of $2,533,738 to the 2016 Refunding Bonds fund was for debt service payments, including $2,074,258 from the General Fund, $35,384 from the Hawthorne Housing Authority Fund, and the non-major funds for the remainder.

The transfer from the Gas Tax Fund to the Street Fund in the amount of $900,000 was to fund eligible projects and programs in the Street Fund.
6) LONG-TERM DEBT
The following is a summary of changes in long-term debt for the year ended June 30, 2024 Balance Balance Due Within
June 30, 2023 Additions Deletions June 30, 2024 One Year Governmental Activities:

Bonds Payable:

Governmental Funds:
2016 Direct Placement Lease Financing $ 1,501,150 $ - $ (199,300) $ 1,301,850 $ 205,850 2016 Certificates of Participation 19,525,000 (2,150,000) - 17,375,000 2,215,000 Plus (less) deferred amounts:

Issuance premium 1,201,686 - (163,951) 1,037,735 163,951 Issuance discount (59,483) - 8,498 (50,985) (8,498)
2019 Pension Obligation Bonds - direct placement 111,395,000 (2,865,000) - 108,530,000 2,930,000 Total Bonds Payble 133,563,353 (5,369,753) - 128,193,600 5,506,303 Direct Borrowing:

Governmental Funds:

Loan payable - Section 108 1,045,000 (1,045,000) - - -
Lease payable - Ricoh Copier Lease 15,964 - (15,964) - - SBITA payable 72,892 - (72,892) - -
Total Governmental Funds 1,133,856 (1,133,856) - - -
Internal Service Funds:

SBITA payable 22,766 - (11,260) 11,506 11,506
Total Internal Service Funds 22,766 - (11,260) 11,506 11,506 Total Direct Borrowing 1,156,622 (1,145,116) - 11,506 11,506 Total long-term debt $ 134,719,975 $ (6,514,869) - $ $ 128,205,106 $ 5,517,809 The City has a legal debt limit of 15% of gross Assesed valuation, or $406,583,620 in fiscal year 2023-2024. None of the City’s general obligation bonds are applicable to this limit.

City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-58-
6) LONG-TERM DEBT, (continued)
2016 Direct Placement Lease Financing
In August 2016, the 2016 Direct Placement Lease Financing was issued in the amount of $2,730,900 to refund $2,755,000 in SBRPCA 2007 Series B Bonds. The bonds consisting of serial bonds maturing in annual installments of $143,350 to $233,450. The bonds bear interest at 2.650%. Total principal and interest remaining on the bonds as of June 30, 2024 is $1,416,202 payable through 2030.

The obligation of the City to make Lease Payments pursuant to the Lease Agreement does not constitute a debt of the City or of the State of California or of any political subdivision thereof within the meaning of any constitutional or statutory debt limitation or restriction and does not constitute an obligation for which the City is obligated to levy or pledge any form of taxation or for which the City has levied or pledged any form of taxation. The City will pay Lease Payments from its general funds. No amounts in the general funds of the City will be segregated, set aside or pledged to the payment of the Lease Payments and no amounts will be reasonably expected to be used directly or indirectly to pay Lease Payments. The 2016 Direct Placement Lease Financing is subject to optional redemption prior to maturity.

If the City fails to perform any of its obligations under the Lease Agreement, the Sublessor may take such action as may be necessary to cure such failure, including the advancement of money, and the City shall be obligated to repay all such advances as additional rental as provided for under the terms of the agreement, with interest at the rate set forth in Section 4.3(c) of the agreement.

The total debt service requirements to maturity as of June 30, 2024, are as follows:
2025 $ 205,850 $ 34,499 $ 240,349
2026 207,100 29,044 236,144
2027 213,150 23,556 236,706
2028 218,600 15,010 233,610
2029 223,700 9,150 232,850
2030 233,450 3,093 236,543
Total $ 1,301,850 $ 114,352 $ 1,416,202
Interest Total
Year
Ending Principal

City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-59-
6) LONG-TERM DEBT, (continued)
2016 Certificate of Participation Series A and Series B Series A Certificates
In May 2016, The City issued $12,645,000 Series A Certificates of Participation to provide funds to (a) refinance the obligations of the City under a lease agreement by and between the California Infrastructure and Economic Development Bank and the City, executed in 2001 to finance the costs of construction of the City of Hawthorne Police Headquarters, (b) pay a portion of the costs of the reserve fund municipal bond insurance policy in lieu of cash funding a reserve fund for the Certificates and (3) pay delivery costs incurred in connection with the execution, delivery, and sale of the Series A Certificates. Total principal and interest remaining on the bonds as of June 30, 2024 is $14,980,500 payable through 2031.

The Series A Certificates maturing on August 1, 2026, are not subject to optional redemption prior to maturity. The Series A Certificates maturing on and after August 1, 2027, are subject to optional redemption prior to maturity in whole or in part on any date in such order of maturity as shall be designated by the City (or, if the City shall fail to so designate the order of redemption, in pro rata among maturities) and by lot within a maturity, on or after August 1, 2026, at a redemption price equal to the principal amount of the Certificates to be redeemed, together with accrued interest, without premium, to the date fixed for redemption, from the proceeds of the optional prepayment of Series A Lease Payments made by the City pursuant to the Lease Agreement.

Series B Certificates
In May 2016, the City issued $17,470,000 Series B Certificates of Participation to provide funds to (a) refinance the obligations with respect to the City of Hawthorne Pension Obligation Bonds, Series 2005, (b) pay a portion of the costs of the Reserve Policy and (c) pay delivery costs incurred in connection with the execution, delivery and sale of the Series B Certificates. Total principal and interest remaining on the bonds as of June 30, 2024 is $4,983,856 payable through 2031.

The Series B Certificates are not subject to optional redemption prior to maturity.

The obligation of the City to make the Lease Payments under the Lease Agreement for the 2016 Certificate of Participation Series A and Series B does not constitute an obligation of the City for which the City is obligated to levy or pledge any form of taxation or for which the City has levied or pledged any form of taxation. The obligation of the City to make Lease Payments does not constitute a debt of the City, the State of California or any political subdivision thereof within the meaning of any constitutional or statutory debt limitation or restriction.

City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-60-
6) LONG-TERM DEBT, (continued)
2016 Certificate of Participation Series A and Series B, (continued) Although the Lease Agreement does not create a pledge, lien or encumbrance upon the funds of the City, the City is obligated under the Lease Agreement to pay the Lease Payments from any source of legally available funds and the City has covenanted in the Lease Agreement that, for so long as the Property is available for its use, it will make the necessary annual appropriations within its budget for the Lease Payments. The City is currently liable and may become liable on other obligations payable from general revenues, some of which may have a priority over the Lease Payments, or which the City, in its discretion, may determine to pay prior to the Lease Payments.

Whenever any Event of Default shall have happened and be continuing, it shall be lawful for the Corporation to exercise any and all remedies available pursuant to law or granted pursuant to the Lease Agreement; provided, however, that notwithstanding anything in the Lease Agreement or in the Trust Agreement to the contrary, there shall be no right under any circumstances to accelerate the Lease Payments or otherwise declare any Lease Payments not then in default to be immediately due and payable. Each and every covenant in the Lease Agreement to be kept and performed by the City is expressly made a condition and upon the breach thereof, the Corporation may exercise any and all rights of entry and reentry upon the Property, and also, at its option, with or without such entry, may terminate the Lease Agreement; provided, that no such termination shall be effected either by operation of law or acts of the parties to the Lease Agreement, except only in the manner expressly provided in the Lease Agreement. In the event of such default and notwithstanding any re-entry by the Corporation, the City shall, as expressly provided in the Lease Agreement, continue to remain liable for the payment of the Lease Payments and/or damages for breach of the Lease Agreement and the performance of all conditions contained in the Lease Agreement and, in any event such rent and/or damages shall be payable to the Corporation at the time and in the manner as provided on the Lease Agreement.

The total debt service requirements to maturity as of June 30, 2024, are as follows:

Year Ending
June 30, Principal Interest Principal Interest Principal Interest 2025 - $ 505,800 $ 2,215,000 $ 116,624 $ 2,215,000 $ 622,424 $ 2026 - 505,800 2,290,000 81,738 2,290,000 587,538
2027 2,145,000 462,900 225,000 44,525 2,370,000 507,425 2028 2,470,000 370,600 - 7,313 2,470,000 377,913
2029 2,570,000 269,800 - 3,656 2,570,000 273,456
2030-2032 5,460,000 220,600 - - 5,460,000 220,600
Total $ 2,335,500 12,645,000 $ 4,730,000 $ 253,856 $ 17,375,000 $ 2,589,356 $ Series A Series B Total

City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-61-
6) LONG-TERM DEBT, (continued)
2019 Pension Obligation Bonds
On September 24, 2019, the City of Hawthorne issued 2019 Taxable Pension Obligation Bonds, Series 2019 in the amount of $121,865,000. The 2019 Bonds were placed with U.S. Bank National Association. The bonds were issued to (a) finance a portion of the City’s unfunded accrued liability to the California Public Employees’ Retirement System (CalPERS) for the benefit of the City’s employees and to pay a portion of current normal costs, and (b) pay the costs incurred in connection with the issuance of the bonds. The bonds bear variable interest rates ranging from 2.115% to 3.299% and are payable semiannually on June 1 and December 1 of each year, commencing June 1, 2020 until maturity or earlier redemption. The bonds mature in fiscal year 2049. Total principal and interest remaining on the bonds as of June 30, 2024 is $166,830,752.

The obligations of the City under the Bonds, including the obligation to make all payments of interest and principal when due, are obligations of the City imposed by law and are absolute and unconditional, without any right of set-off or counterclaim. The Bonds do not constitute an obligation of the City for which the City is obligated to levy or pledge any form of taxation. Neither the Bonds nor the obligations of the City to make payments on the Bonds constitute an indebtedness of the City, the State of California, or any of its political subdivisions in contravention of any constitutional or statutory debt limitation or restriction.

For the purpose of paying the principal of and interest on the Bonds, the City Council has covenanted under the Trust Agreement, to take such actions annually as are necessary or appropriate to cause the debt service on the Bonds due in any fiscal year to be included in the budget for such fiscal year and to make the necessary appropriations therefor from any legally available funds, including the General Fund, to ensure that sufficient sums are available to pay the annual principal of and interest on the Bonds as the same become due.

The Bonds maturing on or before June 1, 2029, are not subject to optional redemption prior to their respective stated maturities. The Bonds maturing on and after June 1, 2030, are subject to optional redemption from any source of available funds of the City, prior to their respective maturities, in whole or in part among maturities as specified by the City, and by lot within a maturity, on any date on or after June 1, 2029, at a redemption price equal to the principal amount of the Bonds to be redeemed, plus accrued interest thereon to the date of redemption, without premium.

The Bonds maturing on June 1, 2039 and June 1, 2044, are also subject to mandatory sinking fund redemption on June 1 in the years, and in the amounts, as set forth in the Official Statement at a redemption price equal to one hundred percent (100%) of the principal amount thereof to be redeemed (without premium), together with interest accrued thereon to the date fixed for redemption.

City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-62-
6) LONG-TERM DEBT, (continued)
2019 Pension Obligation Bonds, (continued)
The following events constitute Events of Default under the Trust Agreement: (a) if default shall be made in the due and punctual payment of the principal of any Bond when and as the same shall become due and payable, whether at maturity as therein expressed, by declaration or otherwise; (b) if default shall be made in the due and punctual payment of any installment of interest on any Bond when and as such interest installment shall become due and payable; (c) if default shall be made by the City in the observance of any of the covenants, agreements or conditions on its part in the Trust Agreement or in the Bonds contained, and such default shall have continued for a period of thirty (30) days after written notice thereof to the City; or (d) if the City shall file a petition seeking reorganization or arrangement under the federal bankruptcy laws or any other applicable law of the United States of America, or if a court of competent jurisdiction shall approve a petition, seeking reorganization of the City under the federal bankruptcy laws or any other applicable law of the United States of America, or if, under the provisions of any other law for the relief or aid of debtors, any court of competent jurisdiction shall assume custody or control of the City or of the whole or any substantial part of its property. A Bondholder may exercise any remedies available pursuant to the law or the Trust Agreement if an event of default occurs under the Trust Agreement.

The total debt service requirements to maturity as of June 30, 2024, are as follows:
2025 $ 2,930,000 $ 3,744,103 $ 6,674,103
2026 3,000,000 3,672,670 6,672,670
2027 3,075,000 3,598,030 6,673,030
2028 3,155,000 3,518,110 6,673,110
2029 3,240,000 3,432,957 6,672,957
2030-2034 17,680,000 15,681,819 33,361,819
2035-2039 20,800,000 12,561,184 33,361,184
2040-2044 24,810,000 8,560,571 33,370,571
2045-2049 29,840,000 3,531,310 33,371,310
Total $ 108,530,000 $ 58,300,752 $ 166,830,752
Year
Ending Principal Interest Total
Section 108 Loan
Section 108 Loan of $7,800,000 was advanced to the City for commercial rehabilitation on CDBG projects. The loan is guaranteed by the Secretary of Housing and Urban Development. Total principal payments of $355,000 is due semi-annually on February 1 and August 1. The notes mature from 2012 to 2024 and bear varying interest rates. The notes were paid/redeemed during the current fiscal year.

City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-63-
6) LONG-TERM DEBT, (continued)
Lease Payable - Ricoh Copier Lease
In February 2019, the City entered into a lease with First American Commercial Bancorp, Inc. to acquire equipment. These assets have been capitalized with the obligation shown in the statement of net position. The lease was paid in full during the current year and the leased asset has been removed from the City’s capital assets.

Subscriptions Payable
Governmental Funds
On July 1, 2022, the City entered into numerous subscriptions for the use of various intangible assets, which have a range between 13 and 36 months. The initial subscription liability was recorded in the range between $10,375 and $117,670. As of June 30, 2024, the value of the subscription liability is $72,892. The City is required to make annual fixed payments in the range between $9,180 to $123,157. The subscriptions have an interest rate between 1.7100% and

3.1440%. This have been paid in full and the related right to use asset and accumulated amortization have been removed from the City’s capital assets.

Internal Service Funds
In prior years, the City entered into a 36-month subscription for the use of WinCams Maintenance & ISM. An initial subscription liability was recorded in the amount of $34,523. As of June 30, 2024, the value of the subscription liability is $22,766. The City is required to make annual fixed payments of $11,506. The subscription has an interest rate of 2.1840%. The value of the right to use asset as of June 30, 2024 is $34,523 with accumulated amortization of $23,014, which is detailed in Note 4.

The following is a schedule by year of future minimum subscription payments under the agreement as of June 30, 2024:

Year Ending
June 30, Principal Interest Total
2025 $ 11,506 $ 251 11,757$
Total $ 11,506 $ 251 11,757$
City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-64-
7) COMPENSATED ABSENCES
The following is a summary of changes in compensated absences for the year ended June 30, 2024:

Balance Balance Due Within
June 30, 2023 Additions Deletions June 30, 2024 One Year Governmental Funds $ 7,920,319 $ 17,135,228 $ (17,029,099) $ 8,026,448 $ 1,605,290 Internal Service Funds 93,965 50,813 (100,009) 44,769 8,954 Business-Type Activities 100,881 157,514 (138,380) 120,015 24,003 Total compensated absences $ 8,115,165 $ 17,343,555 $ (17,267,488) $ 8,191,232 $ 1,638,247 As discussed in Note 1 of the financial statements for governmental fund types, the City's liability for vested and unpaid compensated absences (accrued vacation and sick pay) that exceeds expendable, available financial resources is reported in long-term liabilities. The accrual is calculated in accordance with GASB Code Section C60.109. For governmental activities, the liability will be paid in future years by the General Fund, and for business-type activities, the liability will be paid by the Airport Fund.
8) CLAIMS AND JUDGMENTS
The following is a summary of changes in claims and judgments for the year ended June 30, 2024:

Balance Balance Due Within
June 30, 2023 Additions Deletions June 30, 2024 One Year Internal Service Funds:

Claims and judgements $ 5,577,645 $ 1,017,065 $ - $ 6,594,710 $ 1,318,942 As of June 30, 2024, the City is party to certain lawsuits. After reviewing these lawsuits with legal counsel, management has estimated the potential claims against the City not covered by insurance resulting from such litigation, and has recorded a liability in the Internal Service Fund.

At June 30, 2024, total estimated claims payable were $6,594,710 See note 13 for more information.

The remainder of this page has been left blank intentionally.

City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-65-
9) NON-CITY OBLIGATION DEBT - SPECIAL ASSESSMENT BONDS
Assessment District Bonds
During the year ended June 30, 1992, two Community Facilities Districts (Districts) were established by the former Community Redevelopment Agency (Agency) of the City of Hawthorne.

Bonds have been issued to finance certain capital costs which have a special and direct benefit to the related property owners. Under the terms and conditions of these bonds, the Agency acts as agent for the property owners in collecting the special taxes and forwarding the collections to the bond holders. These bonds have been subsequently refunded by the issuance of 2010 Special Tax Refunding Bonds in the amount of $13,180,000. As of June 30, 2024, the bonds outstanding from these Community Facility Districts totaled $2,350,000.

On April 20, 2005, the District issued the 2004-1 (Fusion at South Bay) 2005 Special Tax Bonds totaling $3,880,000 to acquire an easement and certain public facilities of benefit to the District.

As of June 30, 2024, the bonds outstanding from this Community Facility District totaled $2,390,000.

On November 21, 2006, the City of Hawthorne issued the 2006 Special Tax Bonds totaling $14,755,000 for its Community Facilities District No. 2006-1 (Three Sixty Degrees @ South Bay) (the “District”), to finance the acquisition of an easement and certain public facilities in the vicinity of the District. The bonds are payable solely from Special Tax Revenues levied upon the District.

On January 23, 2020, the City of Hawthorne, for and on behalf the District, issued the 2020 Special Tax Rending Bonds in the amount of $9,435,000 to (i) refund the outstanding City of Hawthorne Community Facilities District No. 2006-1 (Three Sixty Degrees @ South Bay) 2006 Special Tax Bonds, (ii) fund a reserve fund for the Bonds, and (iii) pay costs of issuing the Bonds.

The Bonds are payable from the proceeds of an annual Special Tax (as defined in the Fiscal Agent Agreement) being levied on certain property located within the District, and from certain funds pledged under the Fiscal Agent Agreement. The Special Tax is being levied according to a rate and method of apportionment of Special Taxes approved in 2006.

Interest on the Bonds is payable on March 1 and September 1 of each year, commencing on September 1, 2020. The Bonds are subject to optional redemption and redemption from Special Tax Prepayments prior to their respective maturities. As of June 30, 2024, the bonds outstanding from this Community Facility District totaled $7,830,000.

Such bonds do not constitute an indebtedness of either the City or the Agency, and are payable solely from special taxes collected from property owners within the Districts. In the opinion of City and Agency officials, these bonds are not payable from any revenues or assets of the City or Agency and none of the full faith and credit of the City, the Agency, the Districts, the State or any political subdivision thereof is obligated to the payment of the principal or interest on the bonds.

Accordingly, no liability has been recorded as long-term debt.

City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-66-
10) NET POSITION CLASSIFICATIONS
Net position for governmental activities and business-type activities is classified as (1) net investment in capital assets, (2) restricted, (3) unrestricted. The capital assets, net of accumulated depreciation do not include assets with joint ventures The details of the Net Position as of June 30, 2024 are presented below:

Governmental Business-Type
Activities Activities Total
Net Investment in Capital Assets:

Capital assets, net of accumulated depreciation 169,065,265 $ 11,470,932 $ 180,536,197 $ Less capital related debt balances:
2016 Direct Placement Lease Financing (1,301,850) - (1,301,850) 2016 Certificate of Participation - Series A (17,375,000) - (17,375,000) Plus (less) deferred amounts:

Issuance premium (1,037,735) - (1,037,735)
Issuance discount 50,985 - 50,985
Subscriptions payable (11,506) - (11,506)
(19,675,106) - (19,675,106)
Total Net Investment in Capital Assets 149,390,159 11,470,932 160,861,091 Restricted for:

Public safety 1,892,112 - 1,892,112
Community development 7,204,311 - 7,204,311
Parks and recreation 451,871 - 451,871
Public works 17,566,534 - 17,566,534
Capital improvements 6,747,980 - 6,747,980
Debt service 329,603 - 329,603
Total Restricted 34,192,411 - 34,192,411
Unrestricted (126,435,776) 5,959,822 (120,475,954)
Total $ 57,146,794 $ 17,430,754 $ 74,577,548
11) RETIREMENT PLANS
A) General Information about the Pension Plans
Plan Descriptions
The Plans consist of an agent multiple-employer defined benefit pension plan and a public agency cost-sharing multiple-employer defined benefit pension plan administered by the California Public Employees’ Retirement System (CalPERS).

City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-67-
11) RETIREMENT PLANS, (continued)
A) General Information about the Pension Plans, (continued) Miscellaneous – Agent, Multiple-Employer Defined Benefit Pension Plan 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 plan’s June 30, 2018 Annual Actuarial Valuation Report (funding valuation). Details of the benefits provided can be obtained in Appendix B of the actuarial valuation report. This report and CalPERS’ audited financial statements are publicly available reports that can be obtained at CalPERS’ website, at www.calpers.ca.gov.

Safety – Cost Sharing, Multiple-Employer Defined Benefit Pension Plan All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost-Sharing Multiple-Employer Defined Benefit Pension Plan (Plan) administered by the California Public Employees’ Retirement System (CalPERS.) The Plan consists of individual rate plans (benefit tiers) within a safety risk pool (police and fire) and a miscellaneous risk pool (all other). Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous pools. Accordingly, rate plans within the safety or miscellaneous pools are not separate plans under GASB Statement No. 68. Individual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools.

The City sponsors two safety plans in safety risk pools. Benefit provisions under the Plan are established by State statute and the City resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS’ website, at www.calpers.ca.gov.

Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with 5 years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 5 years of service. The death benefit is one of the following: The Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost-of-living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.

City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-68-
11) RETIREMENT PLANS, (continued)
A) General Information about the Pension Plans, (continued)

The Plan operates under the provisions of the California Public Employees’ Retirement Law (PERL), the California Public Employees’ Pension Reform Act of 2013 (PEPRA), and the regulations, procedures and policies adopted by the CalPERS Board of Administration. The Plan’s authority to establish and amend the benefit terms are set by the PERL and PEPRA and may be amended by the California state legislature and in some cases require approval by the CalPERS Board.

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

Miscellaneous
Hire date
Prior to
January 1, 2013
On or after
January 1, 2013
Benefit formula 2.7% @ 55 2% @ 62
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Retirement age 50 - 55 52 - 57
Monthly benefits, as a % of eligible compensation 2.0% to 2.7% 1.0% to 2.5% Required employee contribution rates 7.840% 7.500%
Required employer contribution rates 13.47% 13.47%
Safety
Hire date
Prior to
January 1, 2013
On or after
January 1, 2013
Benefit formula 3% @ 55 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Retirement age 50 50 - 57
Monthly benefits, as a % of eligible compensation 3.0% 2.0% to 2.7% Required employee contribution rates 8.99% 14.50%
Required employer contribution rates 29.09% 14.50%
Employees Covered
As of June 30, 2022 (valuation date), the following employees were covered by the benefit terms:

Miscellaneous Safety
Inactive employees or beneficiaries
currently receiving benefits 356 237
Inactive employees entitled to but
not yet receiving benefits 281 52
Active employees 177 87
Total 376 814
City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-69-
11) RETIREMENT PLANS, (continued)
A) General Information about the Pension Plans, (continued) Contributions
Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process.

Miscellaneous – Agent, Multiple-Employer Defined Benefit Pension Plan 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 during the year, with an additional amount to finance any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions. Employer Contributions to the Plan for the fiscal year ended June 30, 2024, were $1,970,114.

Safety – Cost Sharing, Multiple-Employer Defined Benefit Pension Plan For public agency cost-sharing plans covered by either the Miscellaneous or Safety risk pools, the Plan’s actuarially determined rate is based on the estimated amount necessary to pay the Plan’s allocated share of the risk pool’s costs of benefits earned by employees during the year, and any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

Employer contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions.

Employer Contributions to the Plan for the fiscal year ended June 30, 2024, were $3,023,248.

The actual employer payments of $3,471,882 made to CalPERS by the City during the measurement period ended June 30, 2023, differed from the City’s proportionate share of the employer’s contributions of $10,029,770 by $6,557,888 which is being amortized over the expected average remaining service lifetime in the Public Agency Cost-Sharing Multiple Employer Plan.

City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-70-
11) RETIREMENT PLANS, (continued)
B) Net Pension Liability
The City’s net pension liability for the Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of the Plan is measured as of June 30, 2023, using an annual actuarial valuation as of June 30, 2022. A summary of principal assumptions and methods used to determine the net pension liability is as follows.

Actuarial Methods and Assumptions Used to Determine Total Pension Liability Valuation Date June 30, 2022
Measurement Date June 30, 2023
Actuarial Cost Method Entry Age Acturial Cost Method
Asset Valuation Method Fair Value of Assets
Actuarial Assumptions:

Discount Rate 6.90%
Inflation 2.30%
Salary Increases Varies by Entry Age and Service
Mortality Rate Table (1) Derived using CALPERS' membership data for all funds
Post Retirement Benefit Increase The lesser of contract COLA or 2.30% until Purchasing Power Protection Allowance floor
on purchasing power applies, 2.30%
(1) The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. Mortality rates incorporate full 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 2021 experience study report from November 2021 that can be found on the CalPERS website.

The remainder of this page has been left blank intentionally.

City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-71-
11) RETIREMENT PLANS, (continued)
B) Net Pension Liability, (continued)
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 shortterm and long-term market return expectations. Using historical returns 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.

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

Asset Class
Assumed
Asset
Allocation
Real
Return1,2
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%
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%)
2 Figures are based on the 2021 Asset Liability Management study. 1 An expected inflation of 2.30% used for this period.

City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-72-
11) RETIREMENT PLANS, (continued)
B) Net Pension Liability, (continued)
Change of Assumptions
There were no assumption changes in 2023. Effective with the June 30, 2021 valuation date (June 30, 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. In addition, demographic assumptions and the price inflation 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 June 30, 2017 through June 30, 2021, 7.65% for measurement dates June 30, 2015 through June 30, 2016, and 7.50% for measurement date June 30, 2014.

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

Subsequent Events
There were no subsequent events that would materially affect the results presented in this disclosure.

Pension Plan Fiduciary Net Position
Information about the pension plan’s assets, deferred outflows of resources, liabilities, deferred inflows of resources, and fiduciary net position are presented in CalPERS’ audited financial statements, which are publicly available reports that can be obtained at CalPERS’ website, at www.calpers.ca.gov. The plan’s fiduciary net position and additions to/deductions from the plan’s fiduciary net position have been determined on the same basis used by the pension plan, which is the economic resources measurement focus and the accrual basis of accounting. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. Investments are reported at fair value.

City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-73-
11) RETIREMENT PLANS, (continued)
B) Net Pension Liability, (continued)
The plan fiduciary net position disclosed in the GASB 68 accounting valuation report may differ from the plan assets reported in the funding actuarial valuation report due to several reasons. First, for the accounting valuations, CalPERS must keep items such as deficiency reserves, fiduciary self-insurance and Other Post-Employment Benefits (OPEB) expense included as assets. These amounts are excluded for rate setting purposes in the funding actuarial valuation. In addition, differences may result from early Annual Comprehensive Financial Report closing and final reconciled reserves.

Miscellaneous – Agent, Multiple-Employer Defined Benefit Pension Plan The following table shows the changes in net pension liability over the measurement period.

Total Pension
Liability
(a)
Plan Fiduciary Net
Position
(b)
Net Pension Liability /
(Asset)
(c) = (a) - (b)
Balance at: 6/30/2022 (VD) 224,407,986 $ 214,760,480 $ 9,647,506 $ Changes Recognized for the
Measurement Period:

Service Cost 2,664,738 - 2,664,738
Interest on the total pension liability 15,327,104 - 15,327,104 Changes of in benefit terms 226,510 - 226,510
Differences between expected and actual
experience 2,653,910 - 2,653,910
Contributions from the employer - 2,001,272 (2,001,272) Contributions from employees - 1,106,404 (1,106,404)
Net investment income - 12,895,701 (12,895,701)
Benefit payments,
including refunds of
employee contributions (12,977,655) (12,977,655) -
Administrative expense - (157,925) 157,925
Net Changes during 2021-22 7,894,607 2,867,797 5,026,810 Balance at: 6/30/2023 (MD) 232,302,593 $ 217,628,277 $ 14,674,316 $ Increase (decrease)
City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-74-
11) RETIREMENT PLANS, (continued)
C) Proportionate Share of Net Pension Liability, (continued) Safety – Cost Sharing, Multiple-Employer Defined Benefit Pension Plan The following table shows the Plan’s proportionate share of the net pension liability over the measurement period.

Plan Total
Pension Liability
(a)
Plan Fiduciary
Net Position
(b)
Plan Net Pension
Liability / (Asset)
(c ) = (a) - (b)
Balance at: 6/30/2022 (VD) 251,662,721 $ 240,688,025 $ 10,974,696 $ Balance at: 6/30/2023 (MD) 269,811,532 251,688,792 18,122,740 Net Changes during 2022-23 $ 11,000,767 18,148,811 $ 7,148,044 $ Valuation Date (VD), Measurement Date (MD).

Increase (Decrease)
The City’s proportion of the net pension liability was determined by CalPERS using the output from the Actuarial Valuation System and the fiduciary net position, as provided in the CalPERS Public Agency Cost-Sharing Allocation Methodology Report, which is a publicly available report that can be obtained at CalPERS’ website, at www.calpers.ca.gov. City’s proportionate share of the net pension liability for the safety Plan as of the June 30, 2022 and 2023 measurement dates was as follows:

Safety
Proportionate Share of NPL - June 30, 2022 0.15971%
Proportionate Share of NPL - June 30, 2023 0.24245%
Change - increase 0.08274%
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City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-75-
11) RETIREMENT PLANS, (continued)
C) Proportionate Share of Net Pension Liability, (continued) Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the City’s proportionate share of the net pension liability of each Plan as of the measurement date, calculated using the discount rate of 6.90 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (5.90 percent) or 1 percentage-point higher (6.90 percent) than the current rate:

Discount Rate - 1%
(5.90%)
Current Discount
Rate (6.90%)
Discount Rate + 1%
(7.90%)
Miscellaneous Plan's
Net Pension Liability 44,134,476 $ 14,674,316 $ (9,664,282) $ Safety Plan's Net
Pension Liability 55,136,081 $ 18,122,740 $ (12,138,300) $ Amortization of Deferred Outflows and Deferred Inflows of Resources Under GASB Statement No. 68, gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time.

The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense.

The amortization period differs depending on the source of the gain or loss:

Difference between
projected and actual
earnings
5 year straight-line amortization
All other amounts Straight-line amortization over the expected average remaining service lives (EARSL) of
all members that are provided with benefits
(active, inactive and retired) as of the
beginning of the measurement period
City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-76-
11) RETIREMENT PLANS, (continued)
C) Proportionate Share of Net Pension Liability, (continued) For the agent, multiple employer plan, the expected average remaining service lifetime (EARSL) is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired). For the cost sharing, multiple employer plan, the EARSL is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired) in the Public Agency Cost Sharing MultipleEmployer Plan (PERF C).

The EARSL for the miscellaneous agent plan for the measurement date ending June 30, 2023, is 2.3 years, which was obtained by dividing the total service years of 1,927 (the sum of remaining service lifetimes of the active employees) by 824 (the total number of participants: active, inactive, and retired). Inactive employees and retirees have remaining service lifetimes equal to 0. Total future service is based on the members’ probability of decrementing due to an event other than receiving a cash refund.

The EARSL for PERF C for the measurement period ending June 30, 2023 is 3.8 years, which was obtained by dividing the total service years of 600,538 (the sum of remaining service lifetimes of the active employees) by 160,073 (the total number of participants: active, inactive, and retired) in PERF C. Inactive employees and retirees have remaining service lifetimes equal to 0. Total future service is based on the members’ probability of decrementing due to an event other than receiving a cash refund.

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

As of the start of the measurement period (July 1, 2022), the City’s total net pension liability was $20,622,202. For the measurement period ending June 30, 2023 (the measurement date), the City incurred a total pension expense of $24,574,731. A breakdown of the pension expense and deferred outflows and deferred inflows of resources related to each pension plan is presented on the following pages.

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City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-77-
11) RETIREMENT PLANS, (continued)
D) Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions, (continued)
Miscellaneous – Agent, Multiple-Employer Defined Benefit Pension Plan As of the start of the measurement period (July 1, 2022), the net pension liability was $9,647,506. For the measurement period ending June 30, 2023 (the measurement date), the City incurred a pension expense of $7,986,035 for the miscellaneous plan. A complete breakdown of the pension expense is as follows:

Description Amount
Service cost $ 2,664,738
Interest on the total pension liability 15,327,104
Changes of benefit terms 226,510
Recognized changes of assumptions 2,518,932
Differences between expected and actual experience 860,683 Contributions - employees (1,106,404)
Projected earnings on pension plan investments (14,456,047) Recognized differences between projected and
actual earnings on plan investments 1,792,594
Administrative expenses 157,925
Total Pension Expense $ 7,986,035
Safety – Cost Sharing, Multiple-Employer Defined Benefit Pension Plan As of the start of the measurement period (July 1, 2022), the net pension liability for the safety plan was $10,974,696. For the measurement period ending June 30, 2023 (the measurement date), the City incurred a pension expense of $16,588,696 for the safety plan.

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City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-78-
11) RETIREMENT PLANS, (continued)
D) Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions, (continued)
As of June 30, 2024, the City has deferred outflows and deferred inflows of resources related to pensions as follows:

Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Differences between Expected and
Actual Experience 1,500,036 $ 192,224 $ 1,330,543 $ 113,909 $ Changes of Assumptions 1,259,467 - 1,057,667 -
Net Difference between Projected and
Actual Earnings on Pension Plan
Investments 10,093,367 - 2,480,092 -
Change in Employer's Proportion - - 17,107,122 -
Difference in Actual vs Projected Contributions - - - 13,223,245 Pension Contributions Subsequent to
Measurement Date 1,970,114 - 3,023,248 -
Total $ 192,224 14,822,984 $ 24,998,672 $ 13,337,154 $
Miscellaneous Safety
These amounts above are net of outflows and inflows recognized in the 2022/23 measurement period expense. The $1,970,114 and $3,023,248 reported as deferred outflows of resources related to the contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in upcoming fiscal year. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in future pension expense as follows:

Fiscal Year
Ended
June 30, Miscellaneous Safety
2025 3,852,880 $ 4,538,358 $
2026 1,315,787 2,907,045
2027 7,179,909 1,123,643
2028 312,070 69,224
2029 - -
Thereafter - -
Deferred Outflows/(Inflows) of
Resources, Net
E) Payable to the Pension Plan
As of June 30, 2024, the City reported a payable of $0 for the outstanding amount of contributions to the pension plans required for the year then ended.

City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-79-
12) OTHER POST-EMPLOYMENT EMPLOYEE BENEFITS
Plan Description
The City provides certain postemployment health care benefits under a agent multiple employer defined benefit plan, in accordance with the various City Council Resolutions: No. 966, No. 5967, No. 5978, No. 5983, No. 5984, No. 6022 and No. 6046, to the following three employee categories: general, fire and police.

The following is a description of the eligibility requirements, the term of the benefits, and the postemployment health benefits available to eligible employees:

General
All employees who have retired from a classification covered by the memorandum of understanding, are receiving retirement benefits from PERS, and have a minimum of 10 years of full-time employment, shall be entitled to enroll in a PERS health plan. The City agrees to reimburse an amount equal to the coverage for the plan in which the employee is enrolled. This benefit commences upon the employee's retirement date and ceases when the employee becomes ineligible for coverage under the PERS health benefits plan.

Fire
All employees who have retired from a classification covered by the memorandum of understanding, are receiving retirement benefits from PERS and have a minimum of 15 years of full-time employment, shall be entitled to enroll in a PERS health plan. The City agrees to reimburse an amount equal to the cost of the coverage for the plan in which the employee is enrolled. This benefit commences upon the employee's retirement date and ceases when the employee becomes ineligible for coverage under the PERS health benefits plan. The City began contracting with the County of Los Angeles beginning in February 1997. Therefore, this benefit pertained only to those employees retiring before February 1997.

Police
All employees who have retired, have at least 20 years of service in the Hawthorne Police Department, and have reached the age of 50, shall be entitled to enroll in a PERS health plan.

The City agrees to pay for health insurance for the retired employee and his or her dependent spouse or family less the retiree contribution of $14.15 per month for 2-party coverage or $23.99 per month for family coverage.

A qualified retiree shall be covered by this provision as long as he/she is eligible for PERS health insurance coverage. The dependent spouse of a qualified retiree shall be covered until he/she reaches the age of 65. Any employee who retires with less than the minimum requirements as noted above shall be offered the opportunity to continue their participation in the group health insurance (PERS) in effect at that time. The City does not provide dental, vision, Medicare Part B, or life insurance as part of the plan.

City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-80-
12) OTHER POST-EMPLOYMENT EMPLOYEE BENEFITS, (continued) Employees Covered
As of the June 30, 2023 actuarial valuation, the following current and former employees were covered by the benefit terms under the Plan:

Category Count
Active employees 260
Inactive employees or beneficiaries currently receiving benefits 262 Inactive employees entitled to but not yet receiving benefit payments 61 Total 583
Funding Policy
The contribution requirements of plan members and the City are established and may be amended by the City, City Council and/or the employee association. Currently, contributions are not required from plan members. If liquidation of the policy were to occur, the General Fund would be responsible for funding the outstanding OPEB liability.

The City pays for postemployment health insurance on a pay-as-you-go basis which has been funded by trust fund account. For fiscal year 2023-24, the City paid $4,220,745 for other postemployment benefits, of which $3,231,292 was for health insurance benefits and $1,000,000 was for Trust contributions.

Actuarial Methods and Assumptions Used to Determine Total OPEB Liability The City’s total OPEB liability was measured as of June 30, 2023 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation using the Alternative Measurement Method dated June 30, 2023 that was rolled forward to determine the June 30, 2023 total OPEB liability, based on the following actuarial methods and assumptions:

Actuarial Assumptions June 30, 2023 Measurement Date (MD) Actuarial Valuation Date June 30, 2023
Contribution Policy Ad-hoc contributions to trust, benefit payments outside of trust
Discount Rate 4.27% at MD June 30, 2023

3.54% at MD June 30, 2022
(Bond Buyer 20-Bond Index)
General Inflation 2.50% annually
Mortality, Retirement, Disability,
Termination
Based on CalPERS 2000-2019 Experience
Study
Salary increases Aggregate - 2.75% annually
Merit - CalPERS 2000-2019 Experience Study
Medical Trend Non-Medicare – 7.90% for 2026, decreasing to an ultimate rate of 3.45% in 2076.

Medicare (Non-Kaiser) – 6.90% for 2026,
decreasing to an ultimate rate of 3.45% in 2076.

Medicare (Kaiser) - 5.65% for 2026, decreasing
to an ultimate rate of 3.45% in 2076
Healthcare Participation Actives: 95%
Retirees: 100% if covered, 5% re-elect at 65 if
waived.

City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-81-
12) OTHER POST-EMPLOYMENT EMPLOYEE BENEFITS, (continued) 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, both short-term and long-term market return expectations are taken into account. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 years using a buildingblock approach.

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

Asset Class
Target
Allocation
Long-term
expected real rate
Asset class component:

Global Equity 60% 4.56%
Fixed income 35% 0.78%
Cash 5% -0.50%
Total 100%
Discount Rate
A discount rate of 4.27% was used in the valuation for measurement date June 30, 2023.

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City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-82-
12) OTHER POST-EMPLOYMENT EMPLOYEE BENEFITS, (continued) Changes in the net OPEB Liability
The changes in the net OPEB liability for the Plan are as follows:

Total OPEB
Liability
Fiduciary Net
Position
Net OPEB
Liabiltiy
(a) {b} {c} = {a} - {b}
Balance at June 30, 2023
(6/30/2022 measurement date) $ 100,714,992 -$ 100,714,992 $ Changes recognized for
the measurement period:

Service cost 3,198,898 - 3,198,898
Interest 3,621,358 - 3,621,358
Actual vs. expected experience 6,671,414 - 6,671,414
Changes of assumptions (6,663,008) - (6,663,008)
Contributions – employer - 6,740,492 (6,740,492)
Net investment income - 198,459 (198,459)
Benefit payments (3,231,292) (3,231,292) -
Administrative expense - (14,371) 14,371
Net change 3,597,370 3,693,288 (95,918)
Balance at June 30, 2024
(6/30/2023 measurement date) $ 104,312,362 $ 3,693,288 $ 100,619,074 Increase (decrease)
Sensitivity of the net OPEB Liability to Changes in the Discount Rate The following presents the net OPEB liability of the City if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2023:

Current
1% Decrease Discount Rate 1% Increase

3.27% 4.27% 5.27%
Total OPEB Liability 117,448,517 $ $ 100,619,074 $ 87,154,666 City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-83-
12) OTHER POST-EMPLOYMENT EMPLOYEE BENEFITS, (continued) Sensitivity of the net OPEB Liability to Changes in the Health Care Trend Rates The following presents the net OPEB liability of the City if it were calculated using health care cost trend rates that are one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2023:
1% Decrease
Current Healthcare
Cost Trend Rates 1% Increase
Total OPEB Liability $ 100,619,074 85,953,001 $ 119,168,552 $ Recognition of Deferred Outflows and Deferred Inflows of Resources Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time. Amounts are first recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense. The net difference between projected and actual earnings on OPEB plan investments is amortized using the straight-line method over 5 years, while all other amounts are amortized over the expected average remaining service lifetime (EARSL) of plan participants.

OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2024, the City recognized OPEB expense of $2,573,745 with details as follows:

Description Amount
Service Cost $ 3,198,898
Interest 3,621,358
Projected Earnings on Investments (124,626)
Administrative Expenses 14,371
Recognition of deferred outflows/(inflows):

Plan Experience (2,959,975)
Assumption Changes (1,161,514)
Asset returns (14,767)
Total OPEB Expense (Income) $ 2,573,745
City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-84-
12) OTHER POST-EMPLOYMENT EMPLOYEE BENEFITS, (continued) OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB, (continued)
The amortization period differs depending on the source of the gain or loss:

Net difference between
projected and actual earnings
on pension plan investments
5-year straight-line amortization
All other amounts Straight-line amortization over the expected average remaining service lives (EARSL) of all members that
are provided with benefits (active, inactive and retired) as of the beginning of the measurement period (5.8
years).

As of fiscal year ended June 30, 2024, the City reported deferred outflows of resources related to OPEB from the following sources:

Deferred Deferred
Outflows Inflows
of Resources of Resources
Differences between expected and actual experience 5,521,170 $ 7,243,692 $ Changes of assumptions 8,057,761 26,040,922
Net difference between projected and actual earnings
on OPEB plan investments - 59,066
Contributions to OPEB plan subsequent to measurement 4,220,745 - Total $ 33,343,680 17,799,676 $
The $4,220,745 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2023 measurement date will be recognized as a reduction of the total OPEB liability in the upcoming years:

Fiscal Year
Ended June 30:

Deferred
Outflows/(Inflows)
of Resources
2025 $ (3,567,902)
2026 (5,921,453)
2027 (6,808,857)
2028 (3,467,693)
2029 1,156
Thereafter: -

City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-85-
12) OTHER POST-EMPLOYMENT EMPLOYEE BENEFITS, (continued) Changes In Assumptions
The changes in assumptions as of the measurement date of June 30, 2023, were: The discount rate was updated based on crossover test from 3.54% to 4.27%, and that the medical trend was updated.
13) INSURANCE
The City is exposed to various risks of loss related to torts, theft of, damage to, and destruction of assets, errors and omissions, injuries to employees, and natural disasters. The City established the Insurance Reserve Fund to account for and finance its uninsured risks of loss and records its risk in long-term debt.

The Insurance Reserve Fund provides coverage for up to a maximum of $250,000 for each workers' compensation claim and $250,000 for each general liability claim. The City is a member of the Independent Cities Risk Management Authority (ICRMA) for its excess liability insurance coverage and workers' compensation coverage and purchases commercial insurance for claims in excess of coverage provided by the fund for all other risks of loss. Settled claims have not exceeded this commercial coverage in any of the past three fiscal years.

All funds of the City except the fiduciary funds participate in the program and make payments to the fund based on actuarial estimates of the amounts needed to pay prior year and current year claims. The claims liability of $6,594,710 reported in the Insurance Reserve Fund at June 30, 2024, is based on the requirements of Governmental Accounting Standards Board Statement No. 10, which requires that a liability for claims be reported if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated.

Changes in the Insurance Reserve Fund's claims liability amounts in the fiscal years 2022, 2023, and 2024, were as follows:

Beginning Changes in Claims Ending Due within
Fiscal Year Balance Estimates Payments Balances One Year 2021-2022 4,312,384 $ 1,527,798 $ - $ 5,840,182 $ 1,168,036 $ 2022-2023 5,840,182 - (262,537) 5,577,645 1,115,529
2023-2024 5,577,645 1,017,065 6,594,710 - 1,318,942
City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-86-
14) COMMITMENT AND CONTINGENCIES
Construction Commitments
The following material construction commitments existed at June 30, 2024:

Remaining Commitments
as of June 30, 2024
$ 459,420
Non-major Funds 511,065
Internal Service Funds 212,606
$ 1,183,091
Fund
Major Funds:

ARPA
Litigation
The City of Hawthorne has been named as a defendant in numerous lawsuits and claims arising in the course of operations. In the aggregate, these claims seek monetary damages in significant amounts. To the extent the outcome of such litigation has been determined to result in probable financial loss to the City, such loss has been accrued in the accompanying combined financial statements.

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City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-87-
15) JOINT VENTURES
South Bay Regional Public Communications Authority (SBRPCA) The City is a member of the South Bay Regional Public Communications Authority (SBRPCA), a joint powers authority of the Cities of Hawthorne, Gardena, Manhattan Beach and El Segundo.

SBRPCA was formed October 14, 1975, for the purpose of financing a public safety communications system for the member cities. The governing board is composed of the mayor of each member city. During fiscal year 2023-24, the City was assessed $3,017,865, which was paid to SBRPCA for the operations and maintenance of the consolidated regional public safety services communications system that SBRPCA provides to its member cities.

The City’s share of SBRPCA capital assets is recorded as a component of the City’s capital assets (see note 4). Ownership percentages are determined by joint agreement. As of June 30, 2024, the following Member Agencies have the following approximate ownership interest:

City of Hawthorne 32.08%
City of Gardena 45.07%
City of Manhattan Beach 22.85%
As of and for the year ended June 30, 2024, SBRPCA's preliminary financial information is as follows:

Net Position
Total assets $ 14,297,651
Total deferred outflows of resources 5,674,146
Total liabilities (12,659,596)
Total deferred inflows of resources (2,123,049)
Total net position $ 5,189,152
Change in Net Position
Operating revenues $ 13,068,123
Operating expenses (11,930,301)
Operating income 1,137,822
Nonoperating revenues (expenses) 128,654
Change in net position 1,266,476
Beginning net position 3,922,676
Ending net position $ 5,189,152
Complete financial statements for the SBRPCA may be obtained from the City's Finance Department.

Should SBRPCA liquidate, all members would receive their equity in the SBRPCA based upon their cumulative contributions.

City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-88-
16) DEFERRED OUTFLOWS/INFLOWS OF RESOURCES
The City recognizes deferred outflows of resources in the City’s financial statements pertaining to the unamortized loss on defeasance of debt and pension contributions made subsequent to the measurement date. The unamortized loss on defeasance of debt is recognized as a component of interest expense in a systematic and rational manner over the remaining life of the old debt or the life of the new debt, whichever is shorter.

The deferred inflows of resources pertains to unavailable revenues which represent receivables that were not received within the availability period and the difference between actual and projected income on pension plan investments.

Governmental
Activities Balance
at June 30, 2024
Deferred outflows of resources
Unamortized loss on defeasance of debt 221,379 $
Governmental
Funds
at June 30, 2024
Deferred inflows of resources
Unavailable Revenue - Receivables that were not
received within the availability period and were
not recognized as revenues 7,654,928 $
Refer to Note 11 for deferred outflows and inflows of resources related to pensions and Note 12 for deferred outflows and inflows of resources related to other post-employment benefits. 17) TAX ABATEMENTS
The Community Redevelopment Agency of the City of Hawthorne (the City) entered into an agreement with Oceangate Properties, Inc. on July 23, 2001. The Developer leases certain real property located at 13900 Hawthorne Boulevard on which the Developer operates a facility for the retail sale of new and used automobile and light trucks known as “South Bay Ford”. At the time of the agreement the Developer will be the owner of certain real property (“Parcel 1”) located in the City. Parcel 1 and the Hawthorne Boulevard Property were both located within the Hawthorne Redevelopment Project No. 2 in the City and are subject to the provisions of the Redevelopment Plan for the project adopted by the City Council of the City on November 26, 1984, by Ordinance No. 1330, as amended. In connection with the Owner Participation Agreement, as amended by the fifth implementation agreement dated April 12, 1999, hereinafter collectively referred to as the “OPA”. In connection with the OPA, the Agency and the City entered into a cooperation and Loan agreement (“Cooperation Agreement”), pursuant to which the City agreed the make a loan to the Agency to be used by the Agency to make certain payments required by the OPA.

City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-89-
17) TAX ABATEMENTS, (continued)
Oceangate Properties, INC.

Pursuant to the OPA, the site was subdivided into eight (8) parcels: Parcels 1, 2, 3, 4A, 4B, 5, 6A, and 6B. The Developer and the Agency have entered into a “Sixth Implementation Agreement” which amends and restates the provisions of the OPA governing the redevelopment of Parcel 1, and the City and the Agency have entered into a Revised Cooperation and Loan Agreement revising the provisions of the Cooperation Agreement with respect to Parcel 1 only.

Pursuant to the Sixth Implementation Agreement, the Developer intends to develop a facility for the retail sale and/or leasing of new automobiles and/or light trucks on Parcel 1 and relocate the Developer’s new car sales operations to Parcel 1. The Developer further intends to continue to use the Hawthorne Boulevard Property for the sale of used vehicles and for service, parts and warranty purposes.

In connection with the sale of Parcel 1 to the Developer, the Developer’s immediate predecessor in interest, Mission-Oceangate, a California general Partnership (“Mission”), has assigned to the Developer its right to received periodic payments of “Sales Tax Generation” and “Net Tax Increment” from Parcels 2-6 as defined in the revised method of financing to the first implementation. In addition, Mission has assigned to the Developer its right to receive periodic payments of “Mello-Roos Reimbursement” from Parcel 1. The thirty (30) year term for the Agency’s payment of Net Tax Increment to the Developer commenced on July 1, 1992 and terminated on September 30, 2022. The thirty (30) year term for the payment of Sales Tax Generation to the Developer commenced on July 1, 1992 and terminated on July 1, 2022.

Payments of Parcel 1 Net Tax Increment Revenue shall be made annually in arrears on or before September 30 of each fiscal year. Payments of Parcel 1 Apportioned Sales Tax Generation shall be made quarterly in arrears, on October 1 (for the first quarter of the calendar year), January 1 (for the second quarter of the preceding calendar year), April 1 (for the third quarter of the preceding year) and July 1 (for the fourth quarter of the preceding calendar year).

Payments of Parcel 1 Apportioned Sales Tax Generation attributable to leasing activity shall be made annually in arrears on July 1 (for the preceding year), provided, however, that if the Developer is able to document to the Agency’s satisfaction on a quarterly basis the amount of Parcel 1 Apportioned Sales Tax Generation attributable to leasing activity, then such payments attributable to leasing activity shall be made at the same time (on a quarterly basis) as other payments of Parcel 1 Apportioned Sales Tax Generation.

Parcel 1 Net Tax Increment Revenue shall be paid to the Agency pursuant to California Health and Safety Code Section 33670(b) that is attributable to assessed value of Parcel 1 in excess of $8,240,000 less any portion of such Parcel 1 Net Tax Increment Revenues required to be deposited in the Agency’s Low- and Moderate-Income Housing Fund.

Parcel 1 Apportioned Sales Tax Generation shall be defined as an amount equal to the applicable portion of tax revenues actually received by the City from the application of Bradley-Burns Local Sales and Use Tax Law on the privilege of selling and leasing tangible personal property at retail on transactions occurring on Parcel 1 and cannot exceed the sum of the Parcel 1 Apportioned Sales Tax Generation Annual Cap and carry over payment.

City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-90-
17) TAX ABATEMENTS, (continued)
Mogul Hospitality Partners – Hawthorne LLC
The City entered into an agreement Mogul Hospitality Partners on August 30, 2016. The Developer is the owner of certain real property totaling approximately 4,000 square feet and located in the City of Hawthorne on which the Developer operates and maintains hotels known as “Marriott Courtyard” and “TownePlace Suites”. In order to induce the Developer to construct and operate the hotels on the property for the Operating Period, and upon the fulfillment of the City Disbursement Conditions, the City agreed provide to the Developer TOT Incentive Payments upon the terms set and as follows:

The City shall pay TOT Incentive Payments to Developer pursuant to and in accordance with the terms of the Agreement in an amount equal to fifty percent (100%) of the Net Transient Occupancy Tax Revenues collected and remitted to the City from the Hotels during the term of the lease, however, that the aggregate total of TOT Incentive Payments shall not exceed a total amount of Two Million Five Hundred Thousand Dollars ($2,500,000), subject to the limitations set forth in the definitions of Net Transient Occupancy Tax Collected and TOT Incentive Payments.

Upon commencement of the lease, TOT Incentive Payments shall be made by the City to Developer following the issuance of a certificate of occupancy (including a temporary certificate of occupancy) for the Hotels, which is 45 days after the date Hotel TOT revenues are collected and received by the City, but in any event (i) if the Hotel Transient Occupancy Tax Revenues are collected and received by the City quarterly, the Lease Payment Date shall occur not more than 90 days after the end of each calendar quarter; and (ii) if the Hotel Transient Occupancy Tax Revenues are collected and received by the City monthly, the Lease Payment Date shall occur not more than 90 days after the end of each calendar month.

As of June 30, 2024, the City abated TOT taxes totaling $1,948,762 under this agreement.

The remainder of this page has been left blank intentionally City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-91-
18) SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY The accompanying financial statements also include the Private-purpose Trust Fund for the Successor Agency to the City’s former Redevelopment Agency (Successor Agency). The City, as the Successor Agency, serves in a fiduciary capacity, as custodian for the assets and to wind down the affairs of the former Redevelopment Agency. Its assets are held in trust for the benefit of the taxing entities within the former Redevelopment Agency’s boundaries and as such, are not available for the use of the City.

Disclosure of Successor Agency Debts
The following is a summary of changes in long-term debt for the year ended June 30, 2024:

Balance Balance Due Within
June 30, 2023 Additions Deletions 2024 One Year
Bonds payable - Direct placement
Tax allocation bonds $ 19,160,000 $ (1,725,000) - $ $ 17,435,000 $ 1,810,000 Plus deferred amounts:

Issuance premium 3,477,401 (248,387) - 3,229,014 -
Total bonds payable 22,637,401 (1,973,387) - 20,664,014 1,810,000 Notes payable - Direct borrowing 33,088,033 1,125,000 (1,151,702) 33,061,331 - Total $ 55,725,434 $ 1,125,000 $ (3,125,089) $ 53,725,345 $ 1,810,000 The remainder of this page has been left blank intentionally City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-92-
18) SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY, (continued)
Disclosure of Successor Agency Debts, (continued)
Tax Allocation Bonds
Redevelopment Project Area 2:
2016 Tax Allocation Bonds
2016 Project Area No. 2 Tax Allocations Bonds, Series 2016 was issued to (a) refund certain outstanding bonds issued by the former Community Redevelopment Agency of the City of Hawthorne (the “Former Agency”), the proceeds of which were used to finance and refinance redevelopment activities of the Former Agency, (b) purchase a municipal bond insurance policy in lieu of funding a debt service reserve fund for the Bonds, and (c) provide for the costs of issuing the Bonds. The Bonds are payable from and secured by a first lien on the Tax Revenues, as defined in the Indenture, and moneys in certain funds and accounts established under the Indenture. The bonds consist of $29,785,000 serial bonds with an annual maturity dates from September 1, 2016 through September 1, 2036, bearing interest ranging from 2.00% to 5.00%.

As of June 30, 2024, total principal and interest outstanding on this 2016 Tax Allocation Bonds is $25,322,875.

The Successor Agency shall not submit a Last and Final ROPS without the prior written consent of Assured Guaranty Municipal Corp., or any successor thereto.

If an Event of Default has occurred under the Indenture and is continuing, the Trustee may, and, if requested in writing by the Owners of a majority in aggregate principal amount of the Bonds then Outstanding the Trustee shall, (a) declare the principal of the Bonds, together with the accrued interest thereon, to be due and payable immediately, and upon any such declaration the same shall become immediately due and payable, anything in the Indenture or in the Bonds to the contrary notwithstanding, and (b) the Trustee shall, subject to the Indenture, exercise any other remedies available to the Trustee and the Bond Owners in law or at equity.

The following schedule summarizes the debt service to maturity requirements for bonds outstanding as of June 30, 2024:
2025 1,810,000 $ 826,500 $ 2,644,125 $
2026 980,000 756,750 2,639,875
2027 1,030,000 706,500 2,636,500
2028 1,085,000 653,625 1,738,625
2029 1,135,000 598,125 1,733,125
2030-2034 11,395,000 2,424,625 13,819,625
Total $ 5,966,125 17,435,000 $ 25,211,875 $
Total
Year Ending
June 30, Principal Interest
City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-93-
18) SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY, (continued)
Note Payable
AutoNation/Costco Note – A first implementation agreement to a Disposition and Development Agreement (DDA) was entered with certain developers in August 2000, paying interest at 9.0%.

The developers had advanced to the Agency $5,500,000 and cancelled a note owed by the Agency (the Costco note) for approximately $7,000,000. In return, the Agency executed a promissory note to the developers for $12,500,000. Sources for repayment of this note consist of Mello-Roos tax refunds, sales tax and transient occupancy tax refunds to the extent these taxes are generated within the project site. As of June 30, 2024, the outstanding balance on this note totaled $33,061,331.

The Agency pledged the Tax Increment to payment of the special taxes on the Refunding Bonds and repayment of the Agency Note pursuant to Health and Safety Code Sections 33641 and 33671.5 and other applicable provisions of law. The Tax Increment shall be subordinate to the Agency’s obligations to make debt service payments on any Tax Allocation Bonds.

The Agency shall deposit or cause all Tax Increments to be deposited in a special fund administered by a trustee that shall be the fiscal agent for the Refunding Bonds.

Commitments and Contingencies
The Successor Agency has assumed a commitment of the former Hawthorne Redevelopment Agency, pertaining to the Oceangate Development.

The Developer is reimbursed 25% of the sales tax generated from parcels two to four and 40% from parcels five and six for 15 years; commencing January 1, 1999. All Mello-Roos taxes received in excess of $506,800 are refunded to the Developer until the 1998 Special Tax Refunding bonds are fully repaid and all tax increments received, except from parcel one, less the low- and moderate-income housing set-aside amount which is refunded to the Developer for a period of 30 years.

The remainder of this page has been left blank intentionally.

City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-94-
19) OTHER REQUIRED DISCLOSURES
Deficit in Fund Balance
The following funds have deficits in fund balance or net position at June 30, 2024:

Fund Amount
Major Governmental Funds:

Special Revenue Funds:
2009 Street Improvement $ (1,589,972)
Nonmajor Governmental Funds:

Special Revenue Funds:

Street Lighting (214,901)
California Office of Traffic Safety (7,864)
Local Law Enforcement Block Grant (213,239)
HOME Grant (957,115)
Community Development Block Grant (661,849)
LEAP Grant (75,291)
CA Parks & Recreation Community Center (923,820)
HUD Community Development (450,521)
Building Resilient Infrastructure & Communities (275,649) Recycling Fund (40,537)
Capital Projects Fund:

Park Improvements (220,262)
Debt Service Fund:
2016 Refunding Bonds (336,938)
2019 Pension Obligation Bond (2,180,166)
Internal Service Fund:

Insurance Reserve (6,615,256)
The City intends to fund these deficits with future revenue, transfers and reductions of expenditures/expenses.
20) SUBSEQUENT EVENT
On September 12, 2024, the City of Hawthorne issued HPFA Lease Revenue Bonds Series 2024 in the amount of $30,237,328. The 2024 Bonds were placed with U.S. Bank National Association.

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REQUIRED SUPPLEMENTARY

INFORMATION
This page intentionally left blank.

City of Hawthorne
Required Supplementary Information
General Fund
-95-
Major Governmental Fund
General Fund is used to account for financial resources traditionally associated with general government operations, which are not required legally or by financial management to be accounted for in another fund.

City of Hawthorne
Required Supplementary Information
Budgetary Comparison Schedule by Department
General Fund
For the Fiscal Year Ended June 30, 2024
-96-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Taxes 83,562,000 $ 84,762,000 $ 93,065,191 $ 8,303,191 $ Licenses and permits 1,716,000 1,925,000 1,756,594 (168,406) Intergovernmental 1,526,000 1,567,250 1,864,291 297,041 Charges for services 4,010,200 4,710,200 4,206,780 (503,420) Fines and forfeitures 3,200,000 3,200,000 2,707,336 (492,664) Use of money and property 500,000 1,900,000 4,612,450 2,712,450 Contributions 200,000 200,000 200,000 -
Miscellaneous 2,902,000 1,901,331 1,887,664 (13,667)
Total revenues 97,616,200 100,165,781 110,300,306 10,134,525 Expenditures
Current:

General government:

Mayor and City Council 7,627,308 6,649,147 6,137,903 511,244 City clerk 196,530 207,832 119,172 88,660
City manager 800,673 880,925 691,374 189,551
City treasurer 40,316 44,236 40,124 4,112
City attorney 1,099,230 977,450 839,280 138,170
Administrative services 7,727,120 7,605,058 6,985,741 619,317 Public safety:

Police 60,063,791 68,569,664 56,452,918 12,116,746
Community development:

Planning 2,615,987 2,777,200 2,123,073 654,127
Building and safety 1,320,701 1,514,235 1,330,439 183,796 Parks and recreation 5,414,227 5,348,847 4,758,783 590,064 Public works 3,201,900 3,133,067 1,878,545 1,254,522
Capital outlay 24,720 25,075 3,763,382 (3,738,307)
Total expenditures 90,132,503 97,732,736 85,120,734 12,612,002 Excess (deficiency) of revenues over
(under) expenditures 7,483,697 2,433,045 25,179,572 22,746,527 Other Financing Sources (Uses)
Transfers in (2,886) 9,994,480 17,377,354 7,382,874
Transfers out (6,101,505) (27,690,813) (27,175,598) 515,215 Total other financing sources (uses) (6,104,391) (17,696,333) (9,798,244) 7,898,089 Net change in fund balance 1,379,306 (15,263,288) 15,381,328 30,644,616 Fund Balance
Beginning 94,092,345 94,092,345 94,092,345 -
Ending $ 95,471,651 $ 78,829,057 $ 109,473,673 $ 30,644,616 Budgeted Amounts
City of Hawthorne
Required Supplementary Information
Major Special Revenue Funds
-97-
Major Special Revenue Funds
Hawthorne Housing Authority Special Revenue Fund is used to account for the housing assistance programs for the qualified low-income residents.

American Rescue Plan Act Fund is used to provide relief to the City for the negative impacts caused from the COVID-19 Pandemic.
2009 Street Improvements Fund is used to account for the City's roadway improvement projects from street and intersection widening to pavement rehabilitations/reconstructions, upgrade or replacement of traffic signals, improvement of street grading and drainage and concrete improvement including ADA accessibility as well as sidewalks and curbs/gutters throughout the City. Funding for such projects are varied and usually received through competitive grants based on availability.

City of Hawthorne
Required Supplementary Information
Budgetary Comparison Schedule
Hawthorne Housing Authority Special Revenue Fund
For the Fiscal Year Ended June 30, 2024
-98-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Intergovernmental $ 11,161,941 $ 11,161,941 $ 11,194,536 $ 32,595 Charges for services 1,059,916 1,059,916 695,688 (364,228) Use of money and property - - 93 93
Miscellaneous 13,418 13,418 15,876 2,458
Total revenues 12,235,275 12,235,275 11,906,193 (329,082) Expenditures
Current:

Community development 11,811,971 11,811,971 11,823,928 (11,957) Community services 3,400 3,400 2,138 1,262
Total expenditures 11,815,371 11,815,371 11,826,066 (10,695) Excess (deficiency) of revenues over
(under) expenditures 419,904 419,904 80,127 (339,777)
Other Financing Uses
Transfers out (127,314) (127,314) (120,327) 6,987
Total other financing uses (127,314) (127,314) (120,327) 6,987 Net change in fund balance 292,590 292,590 (40,200) (332,790) Fund Balance
Beginning 473,128 473,128 473,128 -
Ending $ 765,718 $ 765,718 $ 432,928 $ (332,790)
Budgeted Amounts
City of Hawthorne
Required Supplementary Information
Budgetary Comparison Schedule
American Rescue Plan Act Fund
For the Fiscal Year Ended June 30, 2024
-99-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Charges for services 15,260,827 $ 15,260,827 $ 10,938,118 $ (4,322,709) $ Use of money and property - 250,000 428,240 178,240
Total revenues 15,260,827 15,510,827 11,366,358 (4,144,469) Expenditures
Current:

General government: 3,089,851 10,780,630 3,574,760 7,205,870 Public Safety 15,260,827 15,260,827 - 15,260,827
Total expenditures 18,350,678 26,041,457 3,574,760 22,466,697 Excess (deficiency) of revenues over
(under) expenditures (3,089,851) (10,530,630) 7,791,598 18,322,228 Other Financing Sources (Uses)
Transfers out - - (7,363,358) (7,363,358)
Total other financing sources (uses) - - (7,363,358) (7,363,358) Net change in fund balance (3,089,851) (10,530,630) 428,240 10,958,870 Fund Balance
Beginning 405,104 405,104 405,104 -
Ending $ (2,684,747) $ (10,125,526) $ 833,344 $ 10,958,870 Budgeted Amounts
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City of Hawthorne
Required Supplementary Information
Budgetary Comparison Schedule
2009 Street Improvements Special Revenue Fund
For the Fiscal Year Ended June 30, 2024
-100-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Intergovernmental 8,444,000 $ 8,529,000 $ 2,310,287 $ (6,218,713) $ Use of money and property 2,000 2,000 241 (1,759)
Total revenues 8,446,000 8,531,000 2,310,528 (6,220,472) Expenditures
Current:

Public works 5,779,000 6,575,051 4,859,962 1,715,089
Capital outlay 3,600,000 3,600,000 3,600,000 -
Total expenditures 9,379,000 10,175,051 4,859,962 5,315,089 Excess (deficiency) of revenues
over (under) expenditures (933,000) (1,644,051) (2,549,434) 905,383 Net change in fund balance (933,000) (1,644,051) (2,549,434) (905,383) Fund Balance (Deficit)
Beginning 959,462 959,462 959,462 -
Ending $ 26,462 $ (684,589) $ (1,589,972) $ (905,383)
Budgeted Amounts
City of Hawthorne
Required Supplementary Information
Schedule of Changes in Net Pension Liability and Related Ratios Last Ten Years
-101-
Measurement Period 2013-14 2014-15 2015-16 2016-17

TOTAL PENSION LIABILITY
Service Cost $ 2,320,007 2,388,303 $ 2,435,899 $ 2,423,798 $ Interest 12,647,730 12,438,551 13,024,281 13,232,559
Changes of Benefit Terms - - - -
Difference Between Expected and Actual Experience - (3,637,760) (990,439) (1,869,811) Changes of Assumptions (3,045,664) - - 10,775,154
Benefit Payments, Including Refunds of Employee Contributions (8,546,377) (8,707,272) (9,518,736) (9,562,803) Net Change in Total Pension Liability 6,280,477 (422,959) 4,951,005 14,998,897 Total Pension Liability - Beginning 168,926,377 175,206,854 174,783,895 179,734,900 Total Pension Liability - Ending (a) 175,206,854 174,783,895 179,734,900 194,733,797

PLAN FIDUCIARY NET POSITION
Contributions - Employer 2,197,052 2,628,948 2,956,754 3,304,427 Contributions - Employee - 1,100,494 1,074,004 973,001
Net Investment Income 1,118,891 3,019,296 700,955 14,402,918 Benefit Payments, Including Refunds of Employee Contributions 20,960,975 (8,707,272) (9,518,736) (9,562,803) Net Plan to Plan Resource Movement (8,546,377) (36,608) - - Administrative Expenses - (154,341) (83,347) (194,723)
Other Miscellaneous Income/(Expense)1 - - - -
Net Change in Fiduciary Net Position 15,730,541 (2,149,483) (4,870,370) 8,922,820 Plan Fiduciary Net Position - Beginning2 138,907,456 123,176,915 136,757,973 131,887,603 Plan Fiduciary Net Position - Ending (b) 138,907,456 136,757,973 131,887,603 140,810,423 Plan Net Position Liability / (Asset) - Ending (a) - (b) 36,299,398 $ 38,025,922 $ 47,847,297 $ 53,923,374 $ Plan Fiduciary Net Position as a Percentage of the Total Pension Liability / (Asset) 82.23% 78.24% 73.38% 72.31%
Covered Payroll3 $ 13,145,259 13,000,397 $ 14,172,919 $ 12,670,141 $ Plan Net Pension Liability / (Asset) as a Percentage of Covered Payroll 279.22% 289.27% 337.60% 425.59% 2 Includes any beginning of year adjustment.

Notes to Schedule:
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 statements 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). 3 Includes one year’s payroll growth using 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-19; 3.00 percent payroll growth assumption for fiscal years ended June 30, 2014-17.

Changes in Benefit Terms: There were no changes to benefit terms that applied to all members of the Public Agency Pool. Additionally, the figures above do not include any liability impact that may have resulted from Golden Handshakes that occurred after the June 30, 2021 valuation date, unless the liability impact is deemed to be material to the Public Agency Pool.

Changes in 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.There were no assumption changes for 2021. For 2020, the Plan adopted a new amortization policy effective with the 2019 actuarial valuation. The new amortization policy shortens the period over which actuarial gains and losses are amortized from 30 years to 20 years with the payments computed as a level dollar amount. In addition, the new policy does not utilize a five-year ramp-up and ramp-down on UAL bases attributable to assumption changes and non-investment gains/losses. The new policy also does not utilize a five-year ramp-down on investment gains/losses.

These changes apply only to new UAL bases established on or after June 30, 2019. There were no changes in assumptions in 2019. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate in 2019. In 2017, the accounting discount rate was reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes in the discount rate. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 percent discount rate. -102-
2017-18 2018-19 2019-20 2020-21 2021-22 2022-23
$ 2,499,955 $ 2,467,368 $ 2,391,450 $ 2,478,272 $ 2,662,009 $ 2,664,738 13,468,820 13,791,792 14,191,317 14,602,910 14,801,624 15,327,104 - - - - - 226,510
(1,608,731) (1,116,355) 154,829 699,629 (961,116) 2,653,910 (888,445) - - - 6,297,331 -
(10,222,978) (10,415,096) (11,161,427) (11,977,102) (12,481,867) (12,977,655) 3,248,621 4,727,709 5,576,169 5,803,709 10,317,981 7,894,607 194,733,797 197,982,418 202,710,127 208,286,296 214,090,005 224,407,986 197,982,418 202,710,127 208,286,296 214,090,005 224,407,986 232,302,593 3,987,019 4,555,596 57,022,354 1,612,478 1,599,394 2,001,272 990,915 997,444 1,002,245 1,047,853 984,017 1,106,404
11,595,557 9,470,424 9,133,158 45,476,553 (17,954,498) 12,895,701 (10,222,978) (10,415,096) (11,161,427) (11,977,102) (12,481,867) (12,977,655) (341) (581) - - - -
(219,421) (104,563) (212,912) (206,592) (151,228) (157,925) (416,685) 341 - - - -
5,714,066 4,503,565 55,783,418 35,953,190 (28,004,182) 2,867,797 140,810,423 146,524,489 151,028,054 206,811,472 242,764,662 214,760,480 146,524,489 151,028,054 206,811,472 242,764,662 214,760,480 217,628,277 $ 51,457,929 $ 51,682,073 $ 1,474,824 $ (28,674,657) $ 9,647,506 $ 14,674,316

74.01% 74.50% 99.29% 113.39% 95.70% 93.68%
$ 12,808,459 $ 12,552,747 $ 12,358,915 $ 12,768,014 $ 12,798,121 $ 12,873,129 401.75% 411.72% 11.93% -224.58% 75.38% 113.99%
City of Hawthorne
Required Supplementary Information
Schedule of Plan Contributions – Agent Plan
Last Ten Years
-103-
Miscellaneous Plan
Fiscal
Year
Measurement
Date
Actuarially
Determined
Contribution
Contributions in
Relation to the
Actuarially
Determined
Contribution
Contribution
Deficiency
(Excess)
Employer's
Covered
Payroll
Contributions
as a
Percentage of
Covered
Payroll
6/30/2015 6/30/2014 $ 2,628,948 $ (2,628,948) $ - $ 13,145,259 20.00% 6/30/2016 6/30/2015 2,956,754 (2,956,754) 14,172,919 - 20.86% 6/30/2017 6/30/2016 3,304,427 (3,304,427) 12,670,141 - 26.08% 6/30/2018 6/30/2017 3,987,019 (3,987,019) 12,808,459 - 31.13% 6/30/2019 6/30/2018 4,555,596 (4,555,596) 12,552,747 - 36.29% 6/30/2020 6/30/2019 5,392,780 (57,022,354) (51,629,574) 12,358,915 43.63% 6/30/2021 6/30/2020 1,612,478 (1,612,478) 12,768,014 - 12.63% 6/30/2022 6/30/2021 1,598,786 (1,598,786) 12,798,121 - 12.49% 6/30/2023 6/30/2022 2,000,024 (2,000,024) 12,873,129 - 15.54% 6/30/2024 6/30/2023 1,970,114 (1,970,114) 12,956,526 - 15.21% Notes to Schedule:

Actuarial Cost Method
Amortization Method/Period
Asset Valuation Method
Actuarial Assumptions:

Discount Rate
Inflation
Salary Increases
Mortality Rate Table
Post Retirement Benefit Increase The lesser of contract COLA or 2.30% until Purchasing Power Protection Allowance floor on purchasing power applies, 2.30% thereafter.

2.30%
Varies by Entry Age and Service

6.90%
Fair Value of Assets
For details, see June 30, 2021 Funding Valuation Report.

Entry Age Actuarial Cost Method
The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study for the period from 2001 to 2019.

Pre-retirement and Post-retirement mortality rates include generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries.

The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2022-23 were from the June 30, 2021 Funding Valuation Report.

City of Hawthorne
Required Supplementary Information
Schedule of City’s Proportionate Share of the Plan’s Net Pension Liability and Related Ratios as of the Measurement Date
Last Ten Years
-104-
Safety Plan
Measurement Date
Employer's
Proportion of the
Collective Net
Pension Liability /
(Asset)1
Employer's
Proportionate
Share of the
Collective Net
Pension Liability /
(Asset)
Employer's
Covered Payroll
Employer's
Proportionate
Share of the
Collective Net
Pension Liability
/ (Asset) as a
percentage of
the Employer's
Covered Payroll
Pension Plan's
Fiduciary Net
Position as a
percentage of
the Total
Pension Liability
/ (Asset)
6/30/2014 0.56329% 35,050,308 $ 7,923,329 $ 442.37% 81.42% 6/30/2015 0.60260% 41,362,512 9,859,032 419.54% 78.28%
6/30/2016 0.61630% 53,325,378 9,229,395 577.78% 72.80%
6/30/2017 0.61251% 60,744,172 8,569,976 708.80% 70.97%
6/30/2018 0.63994% 61,666,264 7,590,002 812.47% 71.33%
6/30/2019 0.64788% 66,388,233 10,129,496 655.40% 70.47% 6/30/2020 0.02863% 3,115,161 8,106,797 38.43% 98.67%
6/30/2021 -0.63645% (34,421,128) 8,335,602 -412.94% 114.32% 6/30/2022 0.09501% 10,974,696 9,084,823 120.80% 95.64%
6/30/2023 0.24245% 18,122,740 8,621,419 210.21% 93.28%
1 Proportion of the net pension liability represents the plan's proportion of PERF C, which includes both the Miscellaneous and Safety Risk Pools excluding the 1959 Survivors Risk Pool.

City of Hawthorne
Required Supplementary Information
Schedule of Plan Contributions – Cost Sharing Plan
Last Ten Years
-105-
Safety Plan
Fiscal Year
Measurement
Date
Actuarially
Determined
Contribution
Contributions in
Relation to the
Actuarially
Determined
Contribution
Contribution
Deficiency
(Excess)
Employer's
Covered Payroll
Contributions
as a Percentage
of Covered
Payroll
6/30/2015 6/30/2014 2,714,348 $ (2,714,348) $ - $ 9,859,032 $ 27.53% 6/30/2016 6/30/2015 3,638,229 (3,638,229) - 9,229,395 39.42% 6/30/2017 6/30/2016 4,092,276 (4,092,276) - 8,569,976 47.75% 6/30/2018 6/30/2017 4,728,485 (4,728,485) - 7,590,002 62.30% 6/30/2019 6/30/2018 5,532,655 (5,532,655) - 10,129,496 54.62% 6/30/2020 6/30/2019 6,347,166 (73,465,481) (67,118,315) 8,106,797 78.29% 6/30/2021 6/30/2020 2,397,913 (2,397,913) - 8,335,602 28.71% 6/30/2022 6/30/2021 2,851,665 (2,851,665) - 9,084,823 31.39% 6/30/2023 6/30/2022 3,471,882 (3,471,882) - 8,621,419 40.27% 6/30/2024 6/30/2023 3,023,248 (3,023,248) - 8,858,957 34.13% Notes to Schedule:

Changes in 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.There were no assumption changes for 2021. For 2020, the Plan adopted a new amortization policy effective with the 2019 actuarial valuation. The new amortization policy shortens the period over which actuarial gains and losses are amortized from 30 years to 20 years with the payments computed as a level dollar amount. In addition, the new policy does not utilize a five-year ramp-up and ramp-down on UAL bases attributable to assumption changes and non-investment gains/losses. The new policy also does not utilize a five-year ramp-down on investment gains/losses. These changes apply only to new UAL bases established on or after June 30, 2019. There were no changes in assumptions in 2019. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate in 2019. In 2017, the accounting discount rate was reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes in the discount rate. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 percent discount rate.

Changes in Benefit Terms: There were no changes to benefit terms that applied to all members of the Public Agency Pool. Additionally, the figures above do not include any liability impact that may have resulted from Golden Handshakes that occurred after the June 30, 2021 valuation date, unless the liability impact is deemed to be material to the Public Agency Pool.

City of Hawthorne
Required Supplementary Information
Schedule of Plan Contributions – OPEB
Last Ten Years*
-106-
Fiscal Year
Actuarially
Determined
Contributions
(ADC)
Contributions in
relation to the
ADC
Contribution
Deficiency
(Excess)
Coveredemployee
payroll
Contribution as
a percentage
of coveredemployee
payroll
2024 $ 8,347,000 $ (4,220,745) $ 4,126,255 $ 32,586,616 13% Notes to schedule:

Changes in assumptions:

Methods and assumptions used to determine contributions:

Actuarial Cost Method
Entry age normal, level percent of pay.

Amortization Method
Level percent of pay.

Amortization Period
18-year fixed period for 2023-24
Inflation

2.50%
Assumed Payroll Growth

2.75%
Healthcare Cost Trend Rates
Non-Medicare: 7.9% trending down to 3.75%.

Medicare (non-Kaiser): 6.90% trending down to 3.45%.

Medicare (Kaiser): 5.65% trending down to 3.45%.

Discount rate

4.27%
Mortality and Retirement Rates
CalPERS rates
Contributions are fixed and not based on a measure of pay, therefore covered-employee payroll is used in the schedule.

Discount rate was updated based on crossover test from 3.54% to 4.27%, and medical trend was updated. * Historical information is required only for measurement period for which GASB 75 is applicable. Future years' information will be displayed up to 10 years as information becomes available. Fiscal Year 2023-24 was the first year the City had a trust.

City of Hawthorne
Required Supplementary Information
Schedule of Changes in the Net OPEB Liability and Related Ratios Last Ten Years*
-107-
Fiscal Year 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Measurement Period 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 Total OPEB Liability
Service cost $ 4,251,000 $ 3,574,000 $ 3,405,180 $ 3,555,411 $ 5,252,506 $ 4,500,230 $ 3,198,898 Interest 3,360,000 3,863,000 4,148,492 3,830,827 3,168,811 2,693,466 3,621,358 Differences between expected and
actual experience - (8,450,705) - (14,253,534) - 6,671,414 - Changes of assumptions (14,185,000) (5,105,000) 5,945,521 27,930,290 (8,870,441) (25,044,228) (6,663,008) Benefit payments (2,713,000) (2,806,000) (2,926,000) (2,959,379) (3,202,013) (3,263,442) (3,231,292) Net change in total OPEB liability (9,287,000) (474,000) 2,122,488 32,357,149 (17,904,671) (21,113,974) 3,597,370 Total OPEB liability - beginning 115,015,000 105,728,000 105,254,000 107,376,488 139,733,637 121,828,966 100,714,992 Total OPEB liability - ending $ 105,728,000 $ 105,254,000 $ 107,376,488 $ 139,733,637 $ 121,828,966 $ 100,714,992 $ 104,312,362 Plan Fiduciary Net Position (2)
Contributions – employer - - - - - 6,740,492 -
Net investment income - - - - - - 198,459
Benefit payments - - - - - (3,231,292) -
Administrative expense - - - - - - (14,371)
Net change in plan fiduciary net position - - - - - 3,693,288 - Plan fiduciary net position - beginning - - - - - - -
Plan fiduciary net position - ending (b) - - - - - 3,693,288 - Net OPEB liability - ending (a) - (b) $ 105,728,000 $ 105,254,000 $ 107,376,488 $ 139,733,637 $ 121,828,966 $ 100,714,992 $ 100,619,074 Plan fiduciary net position as a percentage
of the total OPEB liability 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 3.5% Covered-employee payroll (1) $ 25,246,508 24,186,000 $ 25,373,487 $ 27,111,119 $ 27,282,854 $ 31,883,839 $ 32,583,616 $ Total OPEB liability as a percentage of covered-employee payroll (1) 437.1% 416.9% 423.2% 515.4% 446.5% 315.9% 320.1% Notes to schedule:

Significant changes in assumptions:
(1) Covered-employee payroll represented above is based on covered-employee payroll provided by the employer. GASB 75 defines covered-employee payroll as the total payroll of employees that are provided OPEBs through the OPEB plan. Contributions are not based on a measure of pay, therefore, covered-employee payroll is used in this schedule.

In fiscal year ended June 30, 2024 (Measurement date June 30, 2023), the discount rate was updated to 4.27% from prior years' rate of 2.16% *Historical information is required only for measurement periods for which GASB 75 is applicable. Future years' information will be displayed up to 10 years as information becomes available.
(2) The city opened a PARS trust in fiscal year ended June 30, 2024, prior to this, the City did not have assets accumulated in a trust that met the criteria of GASB 75 to pay related benefits.

City of Hawthorne
Notes to Required Supplementary Information
June 30, 2024
-108-
General Budget Policies
The City Council approves each year's budget submitted by the City Manager prior to the beginning of the new fiscal year. Public hearings are conducted prior to its adoption by the Council. Supplemental appropriations, where required during the period, are also approved by the Council. Intradepartmental budget changes are approved by the City Manager. Expenditures may not exceed appropriations at the department level, which is the legal level of control. During the year, several supplementary appropriations were necessary. At fiscal year-end, all operating budget appropriations lapse.

Budgets for all governmental type funds are adopted on a basis consistent with generally accepted accounting principles. Annual budgets are adopted for the General, Special Revenue, Capital Project and Debt Service Funds, with the exception of the following Special Revenue Funds:1) Homeless Prevention and Rapid Re-housing Program (HPRP); 2) Edward Byrne Memorial Justice Assistance Program; 3) American Down Payment Dream Program; 4) CARES Act.

Excess of Expenditures over Appropriations
Excesses of expenditures over appropriations at the department level are as follows:

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City of Hawthorne
Notes to Required Supplementary Information
June 30, 2024
-109-
Fund Appropriations Expenditures Excess
Major Governmental Fund
General Fund:

Capital outlay $ 25,075 $ 3,763,382 $ (3,738,307)
Hawthorne Housing Authority:

Community development 11,811,971 11,823,928 (11,957)
Nonmajor Governmental Funds
Special Revenue Fund:

Gas Tax
Capital outlay 1,400,000 1,524,426 (124,426)
Street
Capital outlay 1,248,488 1,262,736 (14,248)
Asset Forfeiture
Capital outlay 100,031 145,533 (45,502)
MTA Measure R
Capital outlay 1,000,000 1,237,100 (237,100)
MTA Measure M
Capital outlay 1,101,542 1,214,185 (112,643)
Proposition C
Capital outlay 1,196,937 1,320,583 (123,646)
Hawthorne Blvd Mobility Improvement Program
Public works - 466 (466)
Community Development Block Grant
Principal retirement 355,000 690,000 (335,000)
Interest and fiscal charges 14,518 19,291 (4,773)
MTA Measure W
Capital outlay 330,607 500,000 (169,393)
LA Centers for Alcohol and Drug Abuse
Parks and recreation 253,158 268,728 (15,570)
CA Parks & Recreation Senior Center
Parks and recreation 67,000 123,970 (56,970)
Building Resilient Infrastructure & Communities
Public works 400,000 406,116 (6,116)
Debt Service Fund:
2019 Pension Obligation Bond
Interest and fiscal charges 3,816,186 3,828,686 (12,500) City of Hawthorne
Non-Major Governmental Funds
-110-
Special Revenue Funds
Special revenue funds are used to account for specific revenues that are legally restricted to expenditure for particular purposes.

Street Lighting Fund is used to account for the cost of providing lighting and intersection safety lighting on all City streets. The Engineering Division provides engineering and administration for the street lighting assessment district.

Gas Tax Fund is used to account for the City’s share of revenues derived from the State Highway Users Tax Account Sections 2105, 2106, 2107 and 2107.5. Gasoline taxes must be used for maintenance and improvement of City streets, which serve as State and County thoroughfares.

Street Fund is used to account for all related revenues and expenditures, including street repair, reconstruction and maintenance, which are not required to be accounted for in the City's State Gas Tax Fund.

Asset Forfeiture Fund is used to account for all revenues and expenditures related to monies and property seized by the Police Department in drug related incidents. These funds may only be expended on activities used to enhance law enforcement activities.

COPS Fund is used to account for money appropriated statewide and to be used for the supplemental funding of front line law enforcement. These services include personnel, equipment, and programs that meet front line law enforcement objectives.

California Office of Traffic Safety Fund is used to assist in offsetting the personnel costs for the Sobriety Checkpoint Program and the Seat Belt Compliance Program. No budget was legally adopted for the fund.

Edward Byrne Memorial Justice Assistance Program Fund is used to account for financial assistance provided to local law enforcement's agencies to expand efforts in addressing alcoholrelated problems. No budget was legally adopted for the fund.

Local Law Enforcement Block Grant Fund is used to account for both Federal (90%) and City (10%) funds. This program allows for local law enforcement to provide equipment, technology and other materials directly related to law enforcement functions.

MTA Measure R Fund is an ongoing maintenance and Capital Improvement Transportation Fund.

Proposition A Fund is used to account for revenues received by the State; funneled to the City through the Los Angeles County Metropolitan Transit Authority. The City uses these funds for Dial-A-Ride, Recreational Transit and Bus Stop Maintenance. Excess of these funds are traded with other Los Angeles County municipalities for General Funds.

MTA Measure M Fund is used to account for the ongoing maintenance and Capital Improvement Transportation Fund.

City of Hawthorne
Non-Major Governmental Funds, (Continued)
-111-
Special Revenue Funds, (continued)
American Down Payment Dream Program Fund is used to eliminate the obstacles to lower income families by providing upfront down payment and closing costs assistance. No budget was legally adopted for the fund.

Proposition C Fund is used to account for a second half-cent sales tax approved by the voters, the proceeds of which are used to improve transit service and operations, reduce traffic congestion, improve air quality and efficiently operate and improve the condition of streets and highways utilized by public transit.

Air Quality Fund is used to support the South Coast Air Quality Management District's (SCAQMD) imposition of an additional vehicle registration fee and to receive fee revenues for implementing programs to reduce air pollution from motor vehicles.

California Used Oil Recycling Fund is used to account for all the revenues and expenditures associated with grant funds received from the State Integrated Waste Management Board to promote the recycling of used motor oil.

California Beverage Container Recycling Fund is used to account for all the revenues and expenditures associated with grant funds received from the Department of Conservation. Program is funded by (CRV) California Redemption Value Funds. The program targets public education and other programs targeting increased bottle recycling.

Hawthorne Blvd Mobility Improvement Program Fund is used to account for the project that will improve the storm drain system along Hawthorne Blvd., between El Segundo Blvd. and Rosecrans Ave. to eliminate local flooding and will install large infiltration chambers in three preselected areas under center medians for diverting runoff from Dominguez Channel to underground water supply. All traffic signals will be replaced and upgraded throughout the project limits and a new traffic signal will be constructed at the intersection of Hawthorne Blvd. and 141st Street. All center medians will be completely reconstructed with new designs to accommodate new dedicated left turn pockets and as result, entire landscape areas will be replaced with newly designed landscape and irrigation systems. New trees will be planted. 105,000 square feet of new sidewalks and entire pavement structural system will be replaced throughout the project limits.

CATV Peg Fund is used to account for monies received from the City’s cable television franchisee.

Housing Asset Fund accounts for assets used for low and moderate income housing activities in accordance with the applicable housing-related regulations HOME Grant Fund is used to account for HOME Fund grants received from the U.S. Department of Housing & Urban Development. These funds are to be used predominantly to aid low & moderate income residents with their housing needs.

Community Development Block Grant Fund is used to account for Federal grants received from the Department of Housing and Urban Development (HUD). Grant activity is administered by the Community Development Department and is predominantly restricted to activities in ‘target areas’.

City of Hawthorne
Non-Major Governmental Funds, (Continued)
-112-
Special Revenue Funds, (continued)
HPRP Funds is used to account for transactions related to the Homeless Prevention and Rapid Rehousing Program. The aim of the program is to assist homeless households and those at risk of homelessness. No budget was legally adopted for the fund.

FEMA Grant Fund is used to provide the city with assistance for the management, control and reduction of immediate threats to public health and safety.

SB1383 Local Assistance Grant Fund is used to aid in implementing CalRecycle regulations associated with capacity planning, collection, edible food recovery, and education & outreach. No budget was legally adopted for the fund.

Permanent Local Housing Allocation Fund is used to address local community housing needs. No budget was legally adopted for the fund.

CARES Act Fund is used to provide direct economic aid to State and Local governments negatively impact by the COVID-19 pandemic. No budget was legally adopted for the fund.

MTA Measure W Fund is used to account for the ongoing maintenance and Capital Improvement Transportation Fund.

SB2 Planning Grant Fund is used to implement the Safety and Environmental Justice Elements of the Housing Element to advance policies and strategies that address climate resiliency, sustainability, and equity and fair access to housing, job, healthy groceries, and mobility options.

LEAP Grant Fund is used to implement a development permit tracking system and complete the 6th cycle Housing Element and RHNA allocation.

Urban Area Security Initiative Fund is used to account for funding to enhance regional preparedness and capabilities in designated high-threat, high-density areas.

Rain Water Grant Fund is used to account settlement funds to pay for PCB and rain water sampling, and mitigation methods.

LA Centers for Alcohol & Drug Abuse Fund. is used to account for grant funding to provide services to those struggling with addiction and behavioral issues.

California Parks & Recreation Community Center Fund is used to account for grant funding to rehabilitate the city’s community center.

California Parks & Recreation Senior Center Fund is to used to account for grant funding to rehabilitate the city’s senior center.

HUD Community Development Fund is used to account for funds to develop and revitalize viable urban and rural communities through projects initiated and developed at the local level based on local needs, priorities, and benefits.

City of Hawthorne
Non-Major Governmental Funds, (Continued)
-113-
Special Revenue Funds, (continued)
Building Resilient Infrastructure & Communities Fund is used to account for federal funds available to states, U.S territories, federally recognized tribal governments, and local communities for hazard mitigation activities.

Cannabis Retail Access Grant Fund is used to account for grant funding that provides local governments with resources to develop and implement cannabis retailer licensing programs.

Recycling Fund is used to account for all the revenues and expenditures associated with grant funds received from the State of California to promote recycling.

Capital Projects Funds
Capital projects funds are used to account for the acquisition and construction of major capital facilities other than those financed by proprietary funds.

Development Impact Fund is used to account for both the collection and expenditures of impact fees imposed on all developments within the City boundaries. These fees are used to defray the costs associated with infrastructure improvements due to new developments.

Capital Improvements Fund is used to account for current and future city capital improvement projects.

Current projects include the City Hall Renovation, Civic Center, new City Yard.

Park Improvements Grants Fund is to provide a clean, safe, and accessible environment for the community members. The project scope includes removal of deteriorated play equipment and installation of new equipment, reconfiguration of walking paths and fitness zone to increase accessibility.

Debt Service Funds
Debt service funds are used to account for debt service transactions including revenue collection and payments of principal and interest on long-term obligations.

Public Financing Authority Fund is used to account for debt issued for the purpose of financing capital improvements throughout the City. In 1992, the Authority issued $10 million in Certificates of Participation to provide financing for acquisitions, construction, and improvements within the City. In 1997, these certificates were refunded by the 1997 Certificate of Participation. Funds are transferred from the General Fund to make the debt service payments.
2016 Refunding Bonds is used to account for the debt service on the 2016 Certificate of Participation Series A and Series B bonds.
2016 Direct Placement Lease Financing Fund is used to account for the debt service on the 2016 Direct Placement Lease Financing.
2019 Pension Obligation Bond Fund is used to account for the debt service on the 2019 Taxable Pension Obligation Bonds.

City of Hawthorne
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2024
-114-
Special Revenue Funds
Street Gas
Lighting Tax Street
ASSETS
Cash and investments - $ 4,874,815 $ 967,676 $
Cash and investments with fiscal agents - - -
Receivables:

Accounts - 601,058 -
Taxes 8,084 - 2,677
Interest - 24,760 5,338
Notes and loans - - -
Due from Successor Agency - - -
Prepaid expenses - - -
Total assets 8,084 $ 5,500,633 $ 975,691 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable 76,740 $ 1,543,463 $ 563,522 $
Accrued liabilities 2,591 19,277 30,415
Unearned revenue - - -
Deposits payable - - -
Due to other funds 143,654 - -
Total liabilities 222,985 1,562,740 593,937
Deferred Inflows of Resources:

Unavailable revenue - - -
Fund Balances (Deficit):

Nonspendable - - -
Restricted - 3,937,893 381,754
Unassigned (214,901) - -
Total fund balances (214,901) 3,937,893 381,754
Total liabilities, deferred inflows of
resources, and fund balances 8,084 $ 5,500,633 $ 975,691 $

(continued)
-115-
Special Revenue Funds
California Edward Byrne Local Law
Asset Office of Memorial Justice Enforcement
Forfeiture COPS Traffic Safety Assistance Program Block Grant $ 386,577 680,788 $ - $ 17 $ - $
- - - - -
- 38,328 66,551 - -
- - - - -
2,378 - - - -
- - - - -
- - - - -
- - - - -
$ 388,955 719,116 $ 66,551 $ 17 $ - $
$ - 79,823 $ 11,075 $ - $ - $
- 6,047 7,117 17 -
- - 12,900 - -
- - - - -
- - 43,323 - 213,239
- 85,870 74,415 17 213,239
- - - - -
- - - - -
633,246 388,955 - - -
- - (7,864) - (213,239)
633,246 388,955 (7,864) - (213,239)
$ 719,116 $ 388,955 $ 66,551 $ 17 $ -
City of Hawthorne
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2024
-116-
MTA Proposition MTA
Measure R A Measure M
Cash and investments $ 2,588,585 $ 5,088,417 $ 2,748,572 Cash and investments with fiscal agents - - -
Receivables:

Accounts 112,852 - 127,945
Taxes - - -
Interest 15,555 28,097 13,859
Notes and loans - - -
Due from Successor Agency - - -
Prepaid expenses - - -
Total assets $ 2,716,992 $ 5,116,514 $ 2,890,376

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable $ 273,059 $ 165,107 $ 890,786
Accrued liabilities 4,627 1,460 2,861
Unearned revenue - - -
Deposits payable - - -
Due to other funds - - -
Total liabilities 277,686 166,567 893,647
Unavailable revenue - - -
Nonspendable - - -
Restricted 2,439,306 4,949,947 1,996,729
Unassigned - - -
Total fund balances 2,439,306 4,949,947 1,996,729
Total liabilities, deferred inflows of
resources, and fund balances $ 2,716,992 $ 5,116,514 $ 2,890,376 Special Revenue Funds
Fund Balances (Deficit):

Deferred Inflows of Resources:

ASSETS

LIABILITIES, DEFERRED INFLOWS OF

(continued)
-117-
Special Revenue Funds
American California
Down Payment Proposition Air Used Oil
Dream Program C Quality Recycling
$ 4,162,971 15,600 $ 171,821 $ 167,875 $
- - - -
150,028 - 28,833 -
- - - -
23,288 - 829 896
- - - -
- - - -
- - - -
$ 4,336,287 15,600 $ 201,483 $ 168,771 $
$ 644,413 - $ 8,230 $ - $
6,473 - - -
- - - 11,641
- - - -
- - - -
650,886 - 8,230 11,641
- - - -
- - - -
3,685,401 15,600 193,253 157,130
- - - -
3,685,401 15,600 193,253 157,130
$ 15,600 $ 4,336,287 $ 201,483 $ 168,771
City of Hawthorne
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2024
-118-
California Hawthorne Blvd
Beverage Container Mobility Improv.

Recycling Program CATV Peg
Cash and investments 148,030 $ 644 $ 717,532 $
Cash and investments with fiscal agents - - -
Receivables:

Accounts - - 21,520
Taxes - - -
Interest 735 5 -
Notes and loans - - -
Due from Successor Agency - - -
Prepaid expenses - - -
Total assets 148,765 $ 649 $ 739,052 $

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable - $ - $ - $
Accrued liabilities 60 - -
Unearned revenue 180 - -
Deposits payable - - -
Due to other funds - - -
Total liabilities 240 - -
Unavailable revenue - - -
Nonspendable - - -
Restricted 148,525 649 739,052
Unassigned - - -
Total fund balances 148,525 649 739,052
Total liabilities, deferred inflows of
resources, and fund balances 148,765 $ 649 $ 739,052 $
Special Revenue Funds
Deferred Inflows of Resources:

Fund Balances (Deficit):

ASSETS

LIABILITIES, DEFERRED INFLOWS OF

(continued)
-119-
Special Revenue Funds
Community
Housing HOME Development HPRP FEMA
Asset Grant Block Grant Funds Grant
$ 60,213 7,653,196 $ - $ 15,153 $ 2,255 $
- - - - -
2,103,370 - 746,793 - -
- - - - -
- 41,653 - - 318
63,529 - - - -
- 350,503 - - -
- - - - -
$ 2,227,112 8,045,352 $ 746,793 $ 15,153 $ 2,573 $
$ 153,918 12,583 $ 490,905 $ - $ - $
793 3,241 3,551 - -
872,158 - - - -
- 51,925 17,897 - -
527,502 - 278,382 - -
1,554,371 67,749 790,735 - -
1,629,856 350,503 617,907 - -
- - - - -
7,627,100 - - 15,153 2,573
- (957,115) (661,849) - -
7,627,100 (957,115) (661,849) 15,153 2,573
$ 8,045,352 $ 2,227,112 $ 746,793 $ 15,153 $ 2,573
City of Hawthorne
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2024
-120-
SB1383 Local Permanent
Assistance Local Housing CARES
Grant Allocation Act
Cash and investments $ 336,394 $ 1,095,662 $ 38
Cash and investments with fiscal agents - - -
Receivables:

Accounts - - -
Taxes - - -
Interest 1,000 6,757 -
Notes and loans - - -
Due from Successor Agency - - -
Prepaid expenses - - -
Total assets $ 337,394 $ 1,102,419 $ 38

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable $ 1,225 $ 174,912 $ -
Accrued liabilities 6,206 - -
Unearned revenue 323,068 803,453 -
Deposits payable - - -
Due to other funds - - -
Total liabilities 330,499 978,365 -
Unavailable revenue - - -
Nonspendable - - -
Restricted 6,895 124,054 38
Unassigned - - -
Total fund balances 6,895 124,054 38
Total liabilities, deferred inflows of
resources, and fund balances $ 337,394 $ 1,102,419 $ 38 Deferred Inflows of Resources:

Fund Balances (Deficit):

Special Revenue Funds
ASSETS

LIABILITIES, DEFERRED INFLOWS OF

(continued)
-121-
SB2
MTA Planning LEAP Urban Security Rain Water
Measure W Grant Grant Initiative Grant Grant
$ 42,902 446,398 $ - $ - $ 453,713 $
- - - - -
41,196 - 300,000 199,163 -
- - - - -
305 2,850 - - 2,474
- - - - -
- - - - -
- - - 88,000 -
$ 84,403 449,248 $ 300,000 $ 287,163 $ 456,187 $
$ - 2,356 $ - $ - $ - $
- 2,188 - - -
- - - - 438,451
- - - - -
- - 300,000 199,163 -
- 4,544 300,000 199,163 438,451
41,196 - 75,291 88,000 -
- - - 88,000 -
444,704 43,207 - - 17,736
- - (75,291) (88,000) -
444,704 43,207 (75,291) - 17,736
$ 449,248 $ 84,403 $ 300,000 $ 287,163 $ 456,187
Special Revenue Funds
City of Hawthorne
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2024
-122-
LA Centers CA Parks CA Parks
for Alcohol & Recreation & Recreation
& Drug Abuse Community Center Senior Center
Cash and investments $ - $ - $ 317,970
Cash and investments with fiscal agents - - -
Receivables:

Accounts 214,562 923,820 -
Taxes - - -
Interest - - 2,085
Notes and loans - - -
Due from Successor Agency - - -
Prepaid expenses - - -
Total assets $ 214,562 $ 923,820 $ 320,055

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable $ 85,055 $ 736,495 $ 66,736
Accrued liabilities - 565 -
Unearned revenue 3,849 - 234,377
Deposits payable - - -
Due to other funds 125,658 186,760 -
Total liabilities 214,562 923,820 301,113
Unavailable revenue - 923,820 -
Nonspendable - - -
Restricted - - 18,942
Unassigned - (923,820) -
Total fund balances - (923,820) 18,942
Total liabilities, deferred inflows of
resources, and fund balances $ 214,562 $ 923,820 $ 320,055 Fund Balances (Deficit):

Special Revenue Funds
ASSETS

LIABILITIES, DEFERRED INFLOWS OF
Deferred Inflows of Resources:

(continued)
-123-
Building Resilient
HUD Community Infrastructure &
Development Communities
$ 56,003 - $ 180,000 $ - $
- - - -
275,649 450,521 - 40,537
- - - -
- - 655 -
- - - -
- - - -
- - - -
$ 331,652 450,521 $ 180,655 $ 40,537 $
$ 1,564 $ 113 $ 39,900 $ -
- - - 1,012
- - 140,100 -
- - - -
448,957 331,539 - 39,525
450,521 331,652 180,000 40,537
450,521 275,649 - 40,537
- - - -
- - 655 -
(450,521) (275,649) - (40,537)
(450,521) (275,649) 655 (40,537)
$ 450,521 $ 331,652 $ 180,655 $ 40,537
Special Revenue Funds
Cannabis Retail
Acess Grant Recycling Fund
City of Hawthorne
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2024
-124-
Development Park
Impact Improvements
Cash and investments 2,255,418 $ 3,903,751 $ 235,759 $
Cash and investments with fiscal agents - - -
Receivables:

Accounts - - 457,307
Taxes - - -
Interest 12,277 22,066 1,286
Notes and loans - - -
Due from Successor Agency - - -
Prepaid expenses - - -
Total assets 2,267,695 $ 3,925,817 $ 694,352 $

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable 185,672 $ 441,831 $ - $
Accrued liabilities - 1,784 -
Unearned revenue - - -
Deposits payable - - -
Due to other funds - - 457,307
Total liabilities 185,672 443,615 457,307
Unavailable revenue - - 457,307
Nonspendable - - -
Restricted 2,082,023 3,482,202 -
Unassigned - - (220,262)
Total fund balances 2,082,023 3,482,202 (220,262)
Total liabilities, deferred inflows of
resources, and fund balances 2,267,695 $ 3,925,817 $ 694,352 $ Fund Balances (Deficit):

Capital Projects Fund
ASSETS

LIABILITIES, DEFERRED INFLOWS OF
Deferred Inflows of Resources:

Capital
Improvements

(concluded)
-125-
Public 2016 2016 2019 Total Nonmajor
Financing Refunding Direct Placement Pension Obligation Governmental Authority Bonds Lease Financing Bond Funds
$ 265,363 $ - $ 47,154 $ - $ 40,087,262
- 1 - 5 6
- - - - 6,900,033
- - - - 10,761
1,447 - 40 - 210,953
- - - - 63,529
- - - - 350,503
- - - - 88,000
$ 266,810 $ 1 $ 47,194 $ 47,711,047 5 $
$ - $ - $ - $ - $ 6,649,483
- - - - 100,285
- - - - 2,840,177
- - - - 69,822
- 336,939 - 2,180,171 5,812,119
- 336,939 - 2,180,171 15,471,886
- - - - 4,950,587
- - - - 88,000
266,810 - 47,194 - 33,846,726
- (336,938) - (2,180,166) (6,646,152)
266,810 (336,938) 47,194 (2,180,166) 27,288,574
$ 266,810 $ 1 $ 47,194 $ 47,711,047 5 $
Debt Service Funds
City of Hawthorne
Combining Statement of Revenues, Expenditures and Changes in Fund Balance Non-Major Governmental Funds
For the Fiscal Year Ended June 30, 2024
-126-
Special Revenue Funds
Street Gas
Lighting Tax Street
Revenues
Taxes 576,722 $ - $ - $
Licenses and permits - - -
Intergovernmental 177,998 4,644,520 134,257
Charges for services - - 195,083
Fines and forfeitures - - -
Use of money and property - 143,357 32,098
Miscellaneous - - 639,744
Total revenues 754,720 4,787,877 1,001,182
Expenditures
Current:

General government - - -
Public safety - - -
Community development - - -
Parks and recreation - - -
Public works 817,633 1,143,922 1,788,799
Capital outlay - 1,524,426 1,262,736
Debt service:

Principal retirement - - -
Interest and fiscal charges - - -
Total expenditures 817,633 2,668,348 3,051,535
Excess (deficiency) of revenues
over (under) expenditures (62,913) 2,119,529 (2,050,353) Other Financing Sources (Uses)
Transfers in - - 900,000
Transfers out (16,974) (1,109,825) (203,571)
Total other financing sources (uses) (16,974) (1,109,825) 696,429 Net change in fund balances (79,887) 1,009,704 (1,353,924) Fund Balances (Deficit)
Fund balance, previously reported (135,014) 2,928,189 1,735,678 Adjustments - Change from nonmajor to major - - -
Beginning (135,014) 2,928,189 1,735,678
Ending $ (214,901) $ 3,937,893 $ 381,754
(continued)
-127-
Special Revenue Funds
California Edward Byrne Local Law
Asset Office of Memorial Justice Enforcement
Forfeiture COPS Traffic Safety Assistance Program Block Grant $ - $ - $ - $ - $ -
- - - - -
- 248,811 270,073 - -
- - - - -
1,312,982 - - - -
- 15,452 - - -
39,236 - - - -
1,352,218 264,263 270,073 - -
- - - - -
1,352,971 - 256,879 - -
- - - - -
- - - - -
- 300,000 - - -
145,533 - - - -
- - - - -
- - - - -
1,498,504 300,000 256,879 - -
(146,286) (35,737) 13,194 - -
- - - - -
- - - - -
- - - - -
(146,286) (35,737) 13,194 - -
779,532 424,692 (21,058) - (213,239)
- - - - -
779,532 424,692 (21,058) - (213,239)
$ 633,246 $ 388,955 $ (7,864) $ - $ (213,239)
City of Hawthorne
Combining Statement of Revenues, Expenditures and Changes in Fund Balance Non-Major Governmental Funds
For the Fiscal Year Ended June 30, 2024
-128-
2009 Street MTA Proposition
Improvements Measure R A
Revenues
Taxes $ - $ - $ -
Licenses and permits - - -
Intergovernmental - 1,432,085 2,302,709
Charges for services - - 3,000
Fines and forfeitures - - -
Use of money and property - 104,840 164,964
Miscellaneous - - -
Total revenues - 1,536,925 2,470,673
Expenditures
Current:

General government - - -
Public safety - - -
Community development - - -
Parks and recreation - - -
Public works - 330,707 1,415,407
Capital outlay - 1,237,100 -
Debt service:

Principal retirement - - -
Interest and fiscal charges - - -
Total expenditures - 1,567,807 1,415,407
Excess (deficiency) of revenues
over (under) expenditures - (30,882) 1,055,266
Other Financing Sources (Uses)
Transfers in - - -
Transfers out - (48,163) (35,415)
Total other financing sources (uses) - (48,163) (35,415) Net change in fund balances - (79,045) 1,019,851
Fund Balances (Deficit)
Fund balance, previously reported 959,462 2,518,351 3,930,096 Adjustments - Change from nonmajor to major (959,462) - - Beginning - 2,518,351 3,930,096
Ending $ - $ 2,439,306 $ 4,949,947
Special Revenue Funds
(continued)
-129-
Special Revenue Funds
American California
MTA Down Payment Proposition Air Used Oil
Measure M Dream Program C Quality Recycling
$ - $ - $ - $ - $ -
- - - - -
1,617,128 - 1,910,044 115,279 19,176
- - - - -
- - - - -
84,436 - 142,150 6,005 5,648
- - - - -
1,701,564 - 2,052,194 121,284 24,824
- - - - -
- - - - -
- - - 109,713 -
- - - - -
196,872 - 539,201 - 19,176
1,214,185 - 1,320,583 - -
- - - - -
- - - - -
1,411,057 - 1,859,784 109,713 19,176
290,507 - 192,410 11,571 5,648
- - - - -
(34,584) - (16,265) - -
(34,584) - (16,265) - -
255,923 - 176,145 11,571 5,648
1,740,806 15,600 3,509,256 181,682 151,482
- - - - -
1,740,806 15,600 3,509,256 181,682 151,482
$ 1,996,729 $ 15,600 $ 3,685,401 $ 193,253 $ 157,130
City of Hawthorne
Combining Statement of Revenues, Expenditures and Changes in Fund Balance Non-Major Governmental Funds
For the Fiscal Year Ended June 30, 2024
-130-
Special Revenue Funds
California Hawthorne Blvd
Beverage Container Mobility Improv.

Recycling Program CATV Peg
Revenues
Taxes - $ - $ - $
Licenses and permits - - 112,928
Intergovernmental 21,619 - -
Charges for services - - -
Fines and forfeitures - - -
Use of money and property 4,681 5,135 -
Miscellaneous - - -
Total revenues 26,300 5,135 112,928
Expenditures
Current:

General government - - -
Public safety - - -
Community development - - -
Parks and recreation - - -
Public works 21,619 466 -
Capital outlay - - 33,467
Debt service:

Principal retirement - - -
Interest and fiscal charges - - -
Total expenditures 21,619 466 33,467
Excess (deficiency) of revenues
over (under) expenditures 4,681 4,669 79,461
Other Financing Sources (Uses)
Transfers in - - -
Transfers out - (232,593) -
Total other financing sources (uses) - (232,593) -
Net change in fund balances 4,681 (227,924) 79,461
Fund Balances (Deficit)
Fund balance, previously reported 143,844 228,573 659,591 Adjustments - Change from nonmajor to major - - -
Beginning 143,844 228,573 659,591
Ending $ 148,525 $ 649 $ 739,052
(continued)
-131-
Special Revenue Funds
Community
Housing HOME Development HPRP FEMA
Asset Grant Block Grant Funds Grant
$ - - $ - $ - $ - $
- - - - -
671,551 - 1,347,515 - -
- - - - -
- - - - -
- 594,106 45,000 - 763
- - - - -
671,551 594,106 1,392,515 - 763
- 40,681 - - -
- - - - -
2,171,872 208,141 707,479 - -
- - - - -
- - - - -
- - 513,871 - -
- - 690,000 - -
- - 19,291 - -
2,171,872 248,822 1,930,641 - -
345,284 (1,500,321) (538,126) - 763
- - - - -
(33,239) (5,977) (38,281) - -
(33,239) (5,977) (38,281) - -
312,045 (1,506,298) (576,407) - 763
7,315,055 549,183 (85,442) 15,153 1,810
- - - - -
7,315,055 549,183 (85,442) 15,153 1,810
$ 7,627,100 $ (957,115) $ (661,849) $ 15,153 $ 2,573
City of Hawthorne
Combining Statement of Revenues, Expenditures and Changes in Fund Balance Non-Major Governmental Funds
For the Fiscal Year Ended June 30, 2024
-132-
SB1383 Local Permanent
Assistance Local Housing CARES
Grant Allocation Act
Revenues
Taxes - $ - $ - $
Licenses and permits - - -
Intergovernmental - 1,735,098 -
Charges for services - - -
Fines and forfeitures - - -
Use of money and property 22,295 44,315 1
Miscellaneous - - -
Total revenues 22,295 1,779,413 1
Expenditures
Current:

General government - - -
Public safety - - -
Community development 8,003 707,120 -
Parks and recreation - - -
Public works 9,742 - -
Capital outlay - 956,008 -
Debt service:

Principal retirement - - -
Interest and fiscal charges - - -
Total expenditures 17,745 1,663,128 -
Excess (deficiency) of revenues
over (under) expenditures 4,550 116,285 1
Other Financing Sources (Uses)
Transfers in - - -
Transfers out - - -
Total other financing sources (uses) - - -
Net change in fund balances 4,550 116,285 1
Fund Balances (Deficit)
Fund balance, previously reported 2,345 7,769 37
Adjustments - Change from nonmajor to major - - -
Beginning 2,345 7,769 37
Ending $ 6,895 $ 124,054 $ 38
Special Revenue Funds
(continued)
-133-
SB2
MTA Planning LEAP Urban Security Rain Water
Measure W Grant Grant Initiative Grant Grant
$ - - $ - $ - $ - $
- - - - -
- 804,211 224,709 111,163 -
- - - - -
- - - - -
2,011 19,518 - - 15,495
- - - - -
2,011 823,729 224,709 111,163 15,495
- - - - -
- - - - -
- - 133,880 - -
- - - - -
- 442,064 - - -
- 500,000 - 34,970 -
- - - - -
- - - - -
- 942,064 133,880 34,970 -
(118,335) 2,011 90,829 76,193 15,495
- - - - -
(57,511) (19,515) - - -
(57,511) (19,515) - - -
(175,846) (17,504) 90,829 76,193 15,495
620,550 60,711 (166,120) (76,193) 2,241
- - - - -
620,550 60,711 (166,120) (76,193) 2,241
$ 444,704 $ 43,207 $ (75,291) $ - $ 17,736
Special Revenue Funds
City of Hawthorne
Combining Statement of Revenues, Expenditures and Changes in Fund Balance Non-Major Governmental Funds
For the Fiscal Year Ended June 30, 2024
-134-
LA Centers CA Parks CA Parks
for Alcohol & Recreation & Recreation
& Drug Abuse Community Center Senior Center
Revenues
Taxes $ - $ - $ -
Licenses and permits - - -
Intergovernmental 268,728 - -
Charges for services - - -
Fines and forfeitures - - -
Use of money and property - - 282,508
Miscellaneous - - -
Total revenues 268,728 - 282,508
Expenditures
Current:

General government - - -
Public safety - - -
Community development - 140,202 -
Parks and recreation 268,728 24,762 123,970
Public works - - -
Capital outlay - 732,520 142,152
Debt service:

Principal retirement - - -
Interest and fiscal charges - - -
Total expenditures 268,728 897,484 266,122
Excess (deficiency) of revenues
over (under) expenditures - (897,484) 16,386
Other Financing Sources (Uses)
Transfers in - - -
Transfers out - - -
Total other financing sources (uses) - - -
Net change in fund balances - (897,484) 16,386
Fund Balances (Deficit)
Fund balance, previously reported - (26,336) 2,556
Adjustments - Change from nonmajor to major - - -
Beginning - (26,336) 2,556
Ending $ - $ (923,820) $ 18,942
Special Revenue Funds
(continued)
-135-
Building Resilient
HUD Community Infrastructure &
Development Communities
$ - - $ - $ - $
- - - -
165,856 - - -
- - - -
- - - -
- - 655 -
- - 39,900 -
165,856 - 40,555 -
- - - -
- - - -
5,435 12,629 39,900 -
- - - -
406,116 - - 40,537
- 434,860 - -
- - - -
- - - -
411,551 447,489 39,900 40,537
(245,695) (447,489) 655 (40,537)
- - - -
- - - -
- - - -
(447,489) (245,695) 655 (40,537)
(3,032) (29,954) - -
- - - -
(3,032) (29,954) - -
$ (450,521) $ (275,649) $ 655 $ (40,537)
Cannabis
Retail Access
Grant Recycling Fund
Special Revenue Funds
City of Hawthorne
Combining Statement of Revenues, Expenditures and Changes in Fund Balance Non-Major Governmental Funds
For the Fiscal Year Ended June 30, 2024
-136-
Development Park
Impact Improvements
Revenues
Taxes - $ - $ - $
Licenses and permits 165,588 - -
Intergovernmental - - 1,471,855
Charges for services - - -
Fines and forfeitures - - -
Use of money and property 101,323 128,076 5,289
Miscellaneous - - -
Total revenues 266,911 128,076 1,477,144
Expenditures
Current:

General government - 903,467 -
Public safety - - -
Community development 12,397 - -
Parks and recreation - - 125,659
Public works - - -
Capital outlay 1,807,253 - -
Debt service:

Principal retirement - - -
Interest and fiscal charges - - -
Total expenditures 1,819,650 903,467 125,659
Excess (deficiency) of revenues
over (under) expenditures (1,552,739) (775,391) 1,351,485 Other Financing Sources (Uses)
Transfers in - 4,257,593 -
Transfers out - - -
Total other financing sources (uses) - 4,257,593 -
Net change in fund balances (1,552,739) 3,482,202 1,351,485 Fund Balances (Deficit)
Fund balance, previously reported 3,634,762 - (1,571,747) Adjustments - Change from nonmajor to major - - -
Beginning 3,634,762 - (1,571,747)
Ending $ 2,082,023 $ 3,482,202 $ (220,262)
Capital Projects Funds
Capital
Improvements
(concluded)
-137-
Total
Public 2016 2016 2019 Non-major
Financing Refunding Direct Placement Pension Obligation Governmental Authority Bonds Lease Financing Bond Funds
$ - - $ - $ - $ 576,722 $
- - - - 278,516
- - - - 19,694,385
4,599 - - 11,957 214,639
- - - - 1,312,982
7 9,066 1,490 1,340 1,982,024
- - - - 718,880
4,606 9,066 1,490 13,297 24,778,148
- - 204 - 944,352
- - - - 1,609,850
- - - - 4,256,771
- - - - 543,119
- - - - 7,472,261
- - - - 11,859,664
2,150,000 - 199,300 2,865,000 5,904,300
691,046 - 39,780 3,828,686 4,578,803
- 2,841,046 239,284 6,693,686 37,169,120
9,066 (2,836,440) (237,794) (6,680,389) (12,390,972)
- 2,533,738 239,080 6,587,715 14,518,126
- - - - (1,851,913)
- 2,533,738 239,080 6,587,715 12,666,213
9,066 (302,702) 1,286 (92,674) 275,241
257,744 (34,236) 45,908 (2,087,492) 27,972,795
- - - - (959,462)
257,744 (34,236) 45,908 (2,087,492) 27,013,333
$ 266,810 $ (336,938) $ 47,194 $ (2,180,166) $ 27,288,574 Debt Service Funds
City of Hawthorne
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Street Lighting Special Revenue Fund
For the Fiscal Year Ended June 30, 2024
-138-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Taxes 578,000 $ 578,000 $ 576,722 $ (1,278) $
Intergovernmental 178,000 178,000 177,998 (2)
Use of money and property 100 100 - (100)
Total revenues 756,100 756,100 754,720 (1,380)
Expenditures
Current:

Public works 873,459 873,459 817,633 55,826
Total expenditures 873,459 873,459 817,633 55,826
Excess (deficiency) of revenues over
(under) expenditures (117,359) (117,359) (62,913) 54,446 Other Financing Uses
Transfers out (31,979) (31,979) (16,974) 15,005
Total other financing uses (31,979) (31,979) (16,974) 15,005 Net change in fund balance (149,338) (149,338) (79,887) 69,451 Fund Balance (Deficit)
Beginning (135,014) (135,014) (135,014) -
Ending $ (284,352) $ (284,352) $ (214,901) $ 69,451
Budgeted Amounts
City of Hawthorne
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Gas Tax Special Revenue Fund
For the Fiscal Year Ended June 30, 2024
-139-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Intergovernmental 4,659,087 $ 4,659,087 $ 4,644,520 $ (14,567) $ Use of money and property 100 80,100 143,357 63,257
Total revenues 4,659,187 4,739,187 4,787,877 48,690
Expenditures
Current:

Public works 1,636,135 1,832,221 1,143,922 688,299
Capital Outlay 1,400,000 1,400,000 1,524,426 (124,426)
Total expenditures 3,036,135 3,232,221 2,668,348 563,873 Excess (deficiency) of revenues over
(under) expenditures 1,623,052 1,506,966 2,119,529 612,563 Other Financing Uses
Transfers out (1,040,594) (1,040,594) (1,109,825) (69,231) Total other financing uses (1,040,594) (1,040,594) (1,109,825) (69,231) Net change in fund balance 582,458 466,372 1,009,704 543,332 Fund Balance
Beginning 2,928,189 2,928,189 2,928,189 -
Ending $ 3,510,647 $ 3,394,561 $ 3,937,893 $ 543,332
Budgeted Amounts
City of Hawthorne
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Street Special Revenue Fund
For the Fiscal Year Ended June 30, 2024
-140-
Actual Variance with
Original Final Amount Final Budget
Revenues
Intergovernmental 131,603 $ 131,603 $ 134,257 $ 2,654 $ Charges for services 194,000 194,000 195,083 1,083
Use of money and property 5,000 30,000 32,098 2,098
Miscellaneous 300,000 300,000 639,744 339,744
Total revenues 630,603 655,603 1,001,182 345,579
Expenditures
Current:

Public works 1,999,993 2,175,212 1,788,799 386,413
Capital outlay 500,000 1,248,488 1,262,736 (14,248)
Total expenditures 2,499,993 3,423,700 3,051,535 372,165 Excess (deficiency) of revenues over
(under) expenditures (1,869,390) (2,768,097) (2,050,353) 717,744 Other Financing Sources (Uses)
Transfers in 900,000 900,000 900,000 -
Transfers out (128,926) (128,926) (203,571) (74,645)
Total other financing sources (uses) 771,074 771,074 696,429 (74,645) Net change in fund balance (1,098,316) (1,997,023) (1,353,924) 643,099 Fund Balance
Beginning 1,735,678 1,735,678 1,735,678 -
Ending 637,362 $ (261,345) $ 381,754 $ 643,099 $
Budgeted Amounts
City of Hawthorne
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Asset Forfeiture Special Revenue Fund
For the Fiscal Year Ended June 30, 2024
-141-
Actual Variance with
Original Final Amount Final Budget
Revenues
Fines and forfeitures 1,040,000 $ 1,042,000 $ 1,312,982 $ 270,982 $ Miscellaneous - 50,000 39,236 (10,764)
Total revenues 1,040,000 1,092,000 1,352,218 260,218
Expenditures
Current:

Public safety 2,931,657 3,441,534 1,352,971 2,088,563
Capital outlay 100,000 100,031 145,533 (45,502)
Total expenditures 3,031,657 3,541,565 1,498,504 2,043,061 Excess (deficiency) of revenues
over (under) expenditures (1,991,657) (2,449,565) (146,286) 2,303,279 Net change in fund balance (1,991,657) (2,449,565) (146,286) 2,303,279 Fund Balance
Beginning 779,532 779,532 779,532 -
Ending (1,212,125) $ (1,670,033) $ 633,246 $ 2,303,279 $ Budgeted Amounts
City of Hawthorne
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
COPS Special Revenue Fund
For the Fiscal Year Ended June 30, 2024
-142-
Actual Variance with
Original Final Amount Final Budget
Revenues
Intergovernmental 230,000 $ 230,000 $ 248,811 $ 18,811 $ Use of money and property 2,000 12,000 15,452 3,452
Total revenues 232,000 242,000 264,263 22,263
Expenditures
Current:

Public works 300,000 300,000 300,000 -
Total expenditures 300,000 300,000 300,000 -
Net change in fund balance (68,000) (58,000) (35,737) 22,263 Fund Balance
Beginning 424,692 424,692 424,692 -
Ending $ 356,692 $ 366,692 $ 388,955 $ 22,263
Budgeted Amounts
City of Hawthorne
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
California Office of Traffic Safety Special Revenue Fund For the Fiscal Year Ended June 30, 2024
-143-
Actual Variance with
Original Final Amount Final Budget
Revenues
Intergovernmental $ 388,674 $ 388,674 $ 270,073 $ (118,601) Total revenues 388,674 388,674 270,073 (118,601)
Expenditures
Current:

Public safety 388,674 388,674 256,879 131,795
Total expenditures 388,674 388,674 256,879 131,795
Net change in fund balance - - 13,194 13,194
Fund Balance (Deficit)
Beginning (21,058) (21,058) (21,058) -
Ending $ (21,058) $ (21,058) $ (7,864) $ 13,194
Budgeted Amounts
City of Hawthorne
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Local Law Enforcement Block Grant Special Revenue Fund
For the Fiscal Year Ended June 30, 2024
-144-
Actual Variance with
Original Final Amount Final Budget
Revenues
Intergovernmental 180,930 $ 180,930 $ -$ (180,930) $
Total revenues 180,930 180,930 - (180,930)
Expenditures
Current:

Public safety 39,876 39,876 - 39,876
Total expenditures 39,876 39,876 - 39,876
Net change in fund balance 141,054 141,054 - (141,054)
Fund Balance (Deficit)
Beginning (213,239) (213,239) (213,239) -
Ending $ (72,185) $ (72,185) $ (213,239) $ (141,054)
Budgeted Amounts
City of Hawthorne
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
MTA Measure R Special Revenue Fund
For the Fiscal Year Ended June 30, 2024
-145-
Actual Variance with
Original Final Amount Final Budget
Revenues
Intergovernmental 1,561,359 $ 1,561,359 $ 1,432,085 $ (129,274) $ Use of money and property 2,000 72,000 104,840 32,840
Total revenues 1,563,359 1,633,359 1,536,925 (96,434)
Expenditures
Current:

Public works 553,083 676,413 330,707 345,706
Capital outlay 1,000,000 1,000,000 1,237,100 (237,100)
Total expenditures 1,553,083 1,676,413 1,567,807 108,606 Excess (deficiency) of revenues over
(under) expenditures 10,276 (43,054) (30,882) 12,172
Other Financing Uses
Transfers out (43,455) (43,455) (48,163) (4,708)
Total other financing uses (43,455) (43,455) (48,163) (4,708) Net change in fund balance (33,179) (86,509) (79,045) 7,464 Fund Balance
Beginning 2,518,351 2,518,351 2,518,351 -
Ending 2,485,172 $ 2,431,842 $ 2,439,306 $ 7,464 $
Budgeted Amounts
City of Hawthorne
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Proposition A Special Revenue Fund
For the Fiscal Year Ended June 30, 2024
-146-
Actual Variance with
Original Final Amount Final Budget
Revenues
Intergovernmental 2,509,798 $ 2,509,798 $ 2,302,709 $ (207,089) $ Charges for services 800 2,100 3,000 900
Use of money and property 2,000 102,000 164,964 62,964
Total revenues 2,512,598 2,613,898 2,470,673 (143,225)
Expenditures
Current:

Public works 4,753,875 4,890,769 1,415,407 3,475,362
Total expenditures 4,753,875 4,890,769 1,415,407 3,475,362 Excess (deficiency) of revenues
over (under) expenditures (2,241,277) (2,276,871) 1,055,266 3,332,137 Other Financing Uses
Transfers out (12,631) (12,631) (35,415) (22,784)
Total other financing uses (12,631) (12,631) (35,415) (22,784) Net change in fund balance (2,253,908) (2,289,502) 1,019,851 3,309,353 Fund Balance
Beginning 3,930,096 3,930,096 3,930,096 -
Ending 1,676,188 $ 1,640,594 $ 4,949,947 $ 3,309,353 $
Budgeted Amounts
City of Hawthorne
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
MTA Measure M Special Revenue Fund
For the Fiscal Year Ended June 30, 2024
-147-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Intergovernmental 1,769,540 $ 1,769,540 $ 1,617,128 $ (152,412) $ Use of money and property 2,000 52,000 84,436 32,436
Total revenues 1,771,540 1,821,540 1,701,564 (119,976)
Expenditures
Current:

Public works 488,855 488,855 196,872 291,983
Capital outlay 1,100,000 1,101,542 1,214,185 (112,643)
Total expenditures 1,588,855 1,590,397 1,411,057 179,340 Excess (deficiency) of revenues over
(under) expenditures 182,685 231,143 290,507 59,364
Other Financing Uses
Transfers out (37,792) (37,792) (34,584) 3,208
Total other financing uses (37,792) (37,792) (34,584) 3,208 Net change in fund balance 144,893 193,351 255,923 62,572 Fund Balance
Beginning 1,740,806 1,740,806 1,740,806 -
Ending $ 1,885,699 $ 1,934,157 $ 1,996,729 $ 62,572
Budgeted Amounts
City of Hawthorne
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Proposition C Special Revenue Fund
For the Fiscal Year Ended June 30, 2024
-148-
Actual Variance with
Original Final Amount Final Budget
Revenues
Intergovernmental 2,081,812 $ 2,081,812 $ 1,910,044 $ (171,768) $ Use of money and property 2,000 92,000 142,150 50,150
Total revenues 2,083,812 2,173,812 2,052,194 (121,618)
Expenditures
Current:

Public works 562,942 713,876 539,201 174,675
Capital outlay 1,020,000 1,196,937 1,320,583 (123,646)
Total expenditures 1,582,942 1,910,813 1,859,784 51,029 Excess (deficiency) of revenues
over (under) expenditures 500,870 262,999 192,410 (70,589) Other Financing Uses
Transfers out (5,270) (5,270) (16,265) (10,995)
Total other financing uses (5,270) (5,270) (16,265) (10,995) Net change in fund balance 495,600 257,729 176,145 (81,584) Fund Balance
Beginning 3,509,256 3,509,256 3,509,256 -
Ending $ 4,004,856 $ 3,766,985 $ 3,685,401 $ (81,584)
Budgeted Amounts
City of Hawthorne
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Air Quality Special Revenue Fund
For the Fiscal Year Ended June 30, 2024
-149-
Actual Variance with
Original Final Amount Final Budget
Revenues
Intergovernmental 100,000 $ 100,000 $ 115,279 $ 15,279 $ Use of money and property 500 3,700 6,005 2,305
Total revenues 100,500 103,700 121,284 17,584
Expenditures
Current:

Community development 113,840 213,840 109,713 104,127
Total expenditures 113,840 213,840 109,713 104,127
Net change in fund balance (13,340) (110,140) 11,571 121,711 Fund Balance
Beginning 181,682 181,682 181,682 -
Ending 168,342 $ 71,542 $ 193,253 $ 121,711 $
Budgeted Amounts
City of Hawthorne
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
California Used Oil Recycling Special Revenue Fund
For the Fiscal Year Ended June 30, 2024
-150-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Intergovernmental 20,000 $ 20,000 $ 19,176 $ (824) $
Use of money and property 100 4,100 5,648 1,548
Total revenues 20,100 24,100 24,824 724
Expenditures
Current:

Public works 24,199 24,199 19,176 5,023
Total expenditures 24,199 24,199 19,176 5,023
Excess (deficiency) of revenues
over (under) expenditures (4,099) (99) 5,648 5,747
Other Financing Uses
Transfers out (264) (264) - 264
Total other financing uses (264) (264) - 264
Net change in fund balance (4,363) (363) 5,648 6,011
Fund Balance
Beginning 151,482 151,482 151,482 -
Ending $ 147,119 $ 151,119 $ 157,130 $ 6,011
Budgeted Amounts
City of Hawthorne
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
California Beverage Container Recycling Special Revenue Fund For the Fiscal Year Ended June 30, 2024
-151-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Intergovernmental 60,000 $ 60,000 $ 21,619 $ (38,381) $ Use of money and property 100 4,100 4,681 581
Total revenues 60,100 64,100 26,300 (37,800)
Expenditures
Current:

Public works 29,223 29,223 21,619 7,604
Total expenditures 29,223 29,223 21,619 7,604
Excess (deficiency) of revenues over
(under) expenditures 30,877 34,877 4,681 (30,196)
Other Financing Uses
Transfers out (1,076) (1,076) - 1,076
Total other financing uses (1,076) (1,076) - 1,076
Net change in fund balance 29,801 33,801 4,681 (29,120) Fund Balance
Beginning 143,844 143,844 143,844 -
Ending $ 173,645 $ 177,645 $ 148,525 $ (29,120)
Budgeted Amounts
City of Hawthorne
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Hawthorne Boulevard Mobility Improvement Program Special Revenue Fund For the Fiscal Year Ended June 30, 2024
-152-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Use of money and property - $ 5,000 $ 5,135 $ 135 $
Total revenues - 5,000 5,135 135
Expenditures
Current:

Public works - - 466 (466)
Total expenditures - - 466 (466)
Excess (deficiency) of revenues over
(under) expenditures - 5,000 4,669 (331)
Other Financing Sources (Uses)
Transfers out (232,593) - (232,593) -
Total other financing sources (uses) (232,593) - (232,593) - Net change in fund balance (227,593) - (227,924) (331)
Fund Balance
Beginning 228,573 228,573 228,573 -
Ending $ 228,573 $ 980 $ 649 $ (331)
Budgeted Amounts
City of Hawthorne
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
CATV Peg Special Revenue Special Revenue Fund
For the Fiscal Year Ended June 30, 2024
-153-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Licenses and permits 100,000 $ 100,000 $ 112,928 $ 12,928 $ Total revenues 100,000 100,000 112,928 12,928
Expenditures
Capital outlay 200,000 290,000 33,467 256,533
Total expenditures 200,000 290,000 33,467 256,533
Net change in fund balance (100,000) (190,000) 79,461 269,461 Fund Balance
Beginning 659,591 659,591 659,591 -
Ending $ 559,591 $ 469,591 $ 739,052 $ 269,461
Budgeted Amounts
City of Hawthorne
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Housing Asset Special Revenue Fund
For the Fiscal Year Ended June 30, 2024
-154-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Use of money and property 420,332 $ 535,332 $ 594,106 $ 58,774 $ Total revenues 420,332 535,332 594,106 58,774
Expenditures
Current:

General government 900,000 1,335,644 40,681 1,294,963
Community development 241,679 241,679 208,141 33,538
Total expenditures 1,141,679 1,577,323 248,822 1,328,501 Excess (deficiency) of revenues over
(under) expenditures (721,347) (1,041,991) 345,284 1,387,275 Other Financing Uses
Transfers out (8,321) (8,321) (33,239) (24,918)
Total other financing uses (8,321) (8,321) (33,239) (24,918) Net change in fund balance (729,668) (1,050,312) 312,045 1,362,357 Fund Balance
Beginning 7,315,055 7,315,055 7,315,055 -
Ending 6,585,387 $ 6,264,743 $ 7,627,100 $ 1,362,357 $
Budgeted Amounts
City of Hawthorne
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
HOME Grant Special Revenue Fund
For the Fiscal Year Ended June 30, 2024
-155-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Intergovernmental 7,408,516 $ 6,823,565 $ 671,551 $ (6,152,014) $ Use of money and property 45,000 45,000 - (45,000)
Total revenues 7,453,516 6,868,565 671,551 (6,197,014)
Expenditures
Current:

Community development 7,394,730 6,934,461 2,171,872 4,762,589 Total expenditures 7,394,730 6,934,461 2,171,872 4,762,589 Excess (deficiency) of revenues over
(under) expenditures 58,786 (65,896) (1,500,321) (1,434,425) Other Financing Uses
Transfers out (5,307) (5,908) (5,977) (69)
Total other financing uses (5,307) (5,908) (5,977) (69) Net change in fund balance 53,479 (71,804) (1,506,298) (1,434,494) Fund Balance (Deficit)
Beginning 549,183 549,183 549,183 -
Ending $ 602,662 $ 477,379 $ (957,115) $ (1,434,494)
Budgeted Amounts
City of Hawthorne
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Community Development Block Grant Special Revenue Fund
For the Fiscal Year Ended June 30, 2024
-156-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Intergovernmental 3,659,382 $ 3,010,163 $ 1,347,515 $ (1,662,648) $ Use of money and property - 45,000 45,000 -
Total revenues 3,659,382 3,055,163 1,392,515 (1,662,648) Expenditures
Current:

Community development 1,711,027 1,096,997 707,479 389,518 Capital outlay 1,540,542 1,677,112 513,871 1,163,241
Debt service:

Principal retirement 355,000 355,000 690,000 (335,000)
Interest and fiscal charges 14,518 14,518 19,291 (4,773) Total expenditures 3,621,087 3,143,627 1,930,641 1,212,986 Excess (deficiency) of revenues over
(under) expenditures 38,295 (88,464) (538,126) (449,662) Other Financing Uses
Transfers out (15,287) (4,167) (38,281) (34,114)
Total other financing uses (15,287) (4,167) (38,281) (34,114) Net change in fund balance 23,008 (92,631) (576,407) (483,776) Fund Balance (Deficit)
Beginning (85,442) (85,442) (85,442) -
Ending (62,434) $ (178,073) $ (661,849) $ (483,776) $
Budgeted Amounts
City of Hawthorne
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
FEMA Grant Special Revenue Fund
For the Fiscal Year Ended June 30, 2024
-157-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Intergovernmental 214,471 $ 214,471 $ - $ (214,471) $
Use of money and property - - 763 763
Total revenues 214,471 214,471 (213,708) 763
Expenditures
Current:

Public safety 107,263 112,263 - 112,263
Total expenditures 107,263 112,263 - 112,263
Net change in fund balance 107,208 102,208 (101,445) 763 Fund Balance
Beginning 1,810 1,810 1,810 -
Ending $ 109,018 $ 104,018 $ 2,573 $ (101,445)
Budgeted Amounts
City of Hawthorne
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
SB1383 Local Assistance Grant Special Revenue Fund
For the Fiscal Year Ended June 30, 2024
-158-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Use of money and property 115,127 $ 119,127 $ 22,295 $ (96,832) $ Total revenues 115,127 119,127 22,295 (96,832)
Expenditures
Current:

Community Development 50,000 50,000 8,003 41,997
Public Works 64,000 64,000 9,742 54,258
Total expenditures 114,000 114,000 17,745 96,255
Net change in fund balance 1,127 5,127 4,550 (577)
Fund Balance
Beginning 2,345 2,345 2,345 -
Ending 3,472 $ 7,472 $ 6,895 $ (577) $
Budgeted Amounts
City of Hawthorne
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Permanent Local Housing Allocation Special Revenue Fund For the Fiscal Year Ended June 30, 2024
-159-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Intergovernmental 1,048,208 $ 1,491,208 $ 1,735,098 $ 243,890 $ Use of money and property - 25,000 44,315 19,315
Total revenues 1,048,208 1,516,208 1,779,413 263,205
Expenditures
Current:

Community development 136,220 965,717 707,120 258,597
Capital outlay 3,522,906 3,522,906 956,008 2,566,898
Total expenditures 3,659,126 4,488,623 1,663,128 2,825,495 Net change in fund balance (2,610,918) (2,972,415) 116,285 3,088,700 Fund Balance
Beginning 7,769 7,769 7,769 -
Ending (2,603,149) $ (2,964,646) $ 124,054 $ 3,088,700 $ Budgeted Amounts
City of Hawthorne
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
MTA Measure W Special Revenue Fund
For the Fiscal Year Ended June 30, 2024
-160-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Intergovernmental $ 747,000 $ 747,000 $ 804,211 $ 57,211 Use of money and property 300 1,800 19,518 17,718
Total revenues 747,300 748,800 823,729 74,929
Expenditures
Current:

Public Works 742,580 1,630,207 442,064 1,188,143
Capital outlay 300,000 330,607 500,000 (169,393)
Total expenditures 1,042,580 1,960,814 942,064 1,018,750 Excess (deficiency) of revenues over
(under) expenditures (295,280) (1,212,014) (118,335) 1,093,679 Other Financing Uses
Transfers out (82,375) (82,375) (57,511) 24,864
Total other financing uses (82,375) (82,375) (57,511) 24,864 Net change in fund balance (377,655) (1,294,389) (175,846) 1,118,543 Fund Balance
Beginning 620,550 620,550 620,550 -
Ending $ 242,895 $ (673,839) $ 444,704 $ 1,118,543
Budgeted Amounts
City of Hawthorne
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
SB2 Planning Grant Special Revenue Fund
For the Fiscal Year Ended June 30, 2024
-161-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Intergovernmental $ 249,289 $ 249,289 $ - $ (249,289)
Use of money and property - 1,200 2,011 811
Total revenues 249,289 250,489 2,011 (248,478)
Excess (deficiency) of revenues over
(under) expenditures 249,289 250,489 2,011 (248,478)
Other Financing Uses
Transfers out - - (19,515) (19,515)
Total other financing uses - - (19,515) (19,515)
Net change in fund balance 249,289 250,489 (17,504) (267,993) Fund Balance
Beginning - 60,711 60,711 -
Ending $ 249,289 $ 311,200 $ 43,207 $ (267,993)
Budgeted Amounts
City of Hawthorne
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
LEAP Grant Special Revenue Fund
For the Fiscal Year Ended June 30, 2024
-162-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Intergovernmental $ 300,000 $ 300,000 $ 224,709 $ (75,291) Total revenues 300,000 300,000 224,709 (75,291)
Expenditures
Current:

Community development 233,536 246,161 133,880 112,281
Total expenditures 233,536 246,161 133,880 112,281
Net change in fund balance 66,464 53,839 90,829 36,990
Fund Balance (Deficit)
Beginning (166,120) (166,120) (166,120) -
Ending $ (99,656) $ (112,281) $ (75,291) $ 36,990
Budgeted Amounts
City of Hawthorne
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Urban Security Initiative Grant Special Revenue Fund
For the Fiscal Year Ended June 30, 2024
-163-
Actual Variance with
Original Final Amount Final Budget
Revenues
Intergovernmental 123,372 $ 123,372 $ 111,163 $ (12,209) $ Total revenues 123,372 123,372 111,163 (12,209)
Expenditures
Capital outlay 123,372 123,372 34,970 88,402
Total expenditures 123,372 123,372 34,970 88,402
Net change in fund balance - - 76,193 76,193
Fund Balance (Deficit)
Beginning (76,193) (76,193) (76,193) -
Ending $ (76,193) $ (76,193) -$ $ 76,193
Budgeted Amounts
City of Hawthorne
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Rain Water Grant Special Revenue Fund
For the Fiscal Year Ended June 30, 2024
-164-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Use of money and property - $ 450,000 $ 15,495 $ (434,505) $ Total revenues - 450,000 15,495 (434,505)
Net change in fund balance - 450,000 15,495 (434,505)
Fund Balance
Beginning 2,241 2,241 -
Ending $ - $ 452,241 $ 17,736 $ (434,505)
Budgeted Amounts
City of Hawthorne
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Los Angeles Centers for Alcohol and Drug Abuse Special Revenue Fund For the Fiscal Year Ended June 30, 2024
-165-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Intergovernmental 289,985 $ 289,985 $ 268,728 $ (21,257) $ Total revenues 289,985 289,985 268,728 (21,257)
Expenditures
Current:

Parks and recreation 154,615 253,158 268,728 (15,570)
Total expenditures 154,615 253,158 268,728 (15,570)
Net change in fund balance 135,370 36,827 - (36,827)
Fund Balance
Beginning - - - -
Ending 135,370 $ 36,827 $ - $ (36,827) $
Budgeted Amounts
City of Hawthorne
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
California Parks & Recreation Community Center Special Revenue Fund For the Fiscal Year Ended June 30, 2024
-166-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Use of money and property $ 5,000,000 $ 5,000,000 $ (5,000,000) - $ Total revenues 5,000,000 5,000,000 (5,000,000) -
Expenditures
Current:

Community development - 553,000 140,202 412,798
Parks and recreation 4,974,651 231,651 24,762 206,889
Capital outlay - 4,190,000 732,520 3,457,480
Total expenditures 4,974,651 4,974,651 897,484 4,077,167 Net change in fund balance 25,349 25,349 (897,484) (922,833) Fund Balance (Deficit)
Beginning (26,336) (26,336) (26,336) -
Ending $ (987) $ (987) $ (923,820) $ (922,833)
Budgeted Amounts
City of Hawthorne
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
California Parks & Recreation Senior Center Special Revenue Fund For the Fiscal Year Ended June 30, 2024
-167-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Use of money and property 500,000 $ 510,000 $ 282,508 $ (227,492) $ Total revenues 500,000 510,000 282,508 (227,492)
Expenditures
Current:

Community development - 33,000 - 33,000
Parks and recreation 500,000 67,000 123,970 (56,970)
Capital outlay - 400,000 142,152 257,848
Total expenditures 500,000 500,000 266,122 233,878
Net change in fund balance - 10,000 16,386 6,386
Fund Balance
Beginning 2,556 2,556 2,556 -
Ending $ 2,556 $ 12,556 $ 18,942 $ 6,386
Budgeted Amounts
City of Hawthorne
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
HUD Community Development Special Revenue Fund
For the Fiscal Year Ended June 30, 2024
-168-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Intergovernmental 500,000 $ 500,000 $ - $ (500,000) $
Total revenues 500,000 500,000 - (500,000)
Expenditures
Current:

Community development 100,000 111,600 12,629 98,971
Capital outlay 399,491 434,860 434,860 -
Total expenditures 499,491 546,460 447,489 98,971
Net change in fund balance 509 (46,460) (447,489) (401,029) Fund Balance (Deficit)
Beginning (3,032) (3,032) (3,032) -
Ending $ (2,523) $ (49,492) $ (450,521) $ (401,029)
Budgeted Amounts
City of Hawthorne
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Building Resilient Infrastructure & Communities Special Revenue Fund For the Fiscal Year Ended June 30, 2024
-169-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Intergovernmental 430,000 $ 430,000 $ 165,856 $ (264,144) $ Total revenues 430,000 430,000 165,856 (264,144)
Expenditures
Current:

Community development 130,000 22,000 5,435 16,565
Public works 300,000 400,000 406,116 (6,116)
Total expenditures 430,000 422,000 411,551 10,449
Net change in fund balance - 8,000 (245,695) (253,695)
Fund Balance (Deficit)
Beginning (29,954) (29,954) (29,954) -
Ending (29,954) $ (21,954) $ (275,649) $ (253,695) $
Budgeted Amounts
City of Hawthorne
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Cannabis Retail Access Grant Special Revenue Fund
For the Fiscal Year Ended June 30, 2024
-170-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Use of money and property - $ -$ $ 655 $ 655
Miscellaneous - 315,000 39,900 (275,100)
Total revenues - 315,000 40,555 (274,445)
Expenditures
Current:

Community development - 315,000 39,900 275,100
Total expenditures - 315,000 39,900 275,100
Net change in fund balance - - 655 655
Fund Balance
Beginning - - - -
Ending $ - -$ $ 655 $ 655
Budgeted Amounts
City of Hawthorne
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Recycling Fund Special Revenue Fund
For the Fiscal Year Ended June 30, 2024
-171-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Intergovernmental 40,000 $ 40,000 $ -$ $ (40,000)
Total revenues 40,000 40,000 - (40,000)
Expenditures
Current:

Public works 5,000 45,000 40,537 4,463
Total expenditures 5,000 45,000 40,537 4,463
Net change in fund balance 35,000 (5,000) (40,537) (35,537) Fund Balance (Deficit)
Beginning - - - -
Ending $ 35,000 $ (5,000) $ (40,537) $ (35,537)
Budgeted Amounts
City of Hawthorne
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Development Impact Capital Projects Fund
For the Fiscal Year Ended June 30, 2024
-172-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Licenses and permits 500,000 $ 500,000 $ 165,588 $ (334,412) $ Use of money and property 5,000 75,000 101,323 26,323
Total revenues 505,000 575,000 266,911 (308,089)
Expenditures
Current:

Community development 70,804 70,804 12,397 58,407
Public works 2,500,000 2,521,823 1,807,253 714,570
Total expenditures 2,570,804 2,592,627 1,819,650 772,977 Net change in fund balance (2,065,804) (2,017,627) (1,552,739) 464,888 Fund Balance
Beginning 3,634,762 3,634,762 3,634,762 -
Ending 1,568,958 $ 1,617,135 $ 2,082,023 $ 464,888 $
Budgeted Amounts
City of Hawthorne
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Capital Improvements Capital Projects Fund
For the Fiscal Year Ended June 30, 2024
-173-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Use of money and property - $ -$ $ 128,076 $ 128,076
Total revenues - - 128,076 128,076
Expenditures
Current:

General government 3,025,000 - 903,467 2,121,533
Total expenditures 3,025,000 - 903,467 2,121,533
Excess (deficiency) of revenues over
(under) expenditures (3,025,000) - (775,391) 2,249,609
Other Financing Sources
Transfers in 4,257,593 - 4,257,593 -
Total other financing sources 4,257,593 - 4,257,593 -
Net change in fund balance 1,232,593 - 3,482,202 2,249,609 Fund Balance
Beginning - - - -
Ending $ 1,232,593 - $ $ 3,482,202 $ 2,249,609
Budgeted Amounts
City of Hawthorne
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Parks Improvements Capital Projects Fund
For the Fiscal Year Ended June 30, 2024
-174-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Intergovernmental $ 5,574,990 $ 5,574,990 $ 1,471,855 $ (4,103,135) Use of money and property - 3,000 5,289 2,289
Total revenues 5,574,990 5,577,990 1,477,144 (4,100,846) Expenditures
Current:

Community development 231,756 231,756 - 231,756
Parks and recreation 4,257,835 4,257,835 125,659 4,132,176 Total expenditures 4,489,591 4,489,591 125,659 4,363,932 Net change in fund balance 1,085,399 1,088,399 1,351,485 263,086 Fund Balance (Deficit)
Beginning (1,571,747) (1,571,747) (1,571,747) -
Ending $ (486,348) $ (483,348) $ (220,262) $ 263,086
Budgeted Amounts
City of Hawthorne
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Public Financing Authority Debt Service Fund
For the Fiscal Year Ended June 30, 2024
-175-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Use of money and property - $ 7,000 $ 9,066 $ 2,066 $
Total revenues - 7,000 9,066 2,066
Net change in fund balance - 7,000 9,066 2,066
Fund Balance
Beginning 257,744 257,744 257,744 -
Ending $ 257,744 $ 264,744 $ 266,810 $ 2,066
Budgeted Amounts
City of Hawthorne
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
2016 Refunding Bonds Debt Service Fund
For the Fiscal Year Ended June 30, 2024
-176-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Charges for services - $ - $ 4,599 $ 4,599 $
Use of money and property 300 300 7 (293)
Total revenues 300 300 4,606 4,306
Expenditures
Debt service:

Principal retirement 2,150,000 2,150,000 2,150,000 -
Interest and fiscal charges 741,046 741,046 691,046 50,000 Total expenditures 2,891,046 2,891,046 2,841,046 50,000 Excess (deficiency) of revenues over
(under) expenditures (2,890,746) (2,890,746) (2,836,440) 54,306 Other Financing Sources
Transfers in 2,510,166 2,510,166 2,533,738 23,572
Total other financing sources 2,510,166 2,510,166 2,533,738 23,572 Net change in fund balance (380,580) (380,580) (302,702) 77,878 Fund Balance (Deficit)
Beginning (34,236) (34,236) (34,236) -
Ending (414,816) $ (414,816) $ (336,938) $ 77,878 $
Budgeted Amounts
City of Hawthorne
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
2016 Direct Placement Lease Financing Debt Service Fund For the Fiscal Year Ended June 30, 2024
-177-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Use of money and property 400 $ 1,900 $ 1,490 $ (410) $ Total revenues 400 1,900 1,490 (410)
Expenditures
Current:

General government 5,704 5,704 204 5,500
Debt service:

Principal retirement 199,300 199,300 199,300 -
Interest and fiscal charges 39,781 39,781 39,780 1
Total expenditures 244,785 244,785 239,284 5,501
Excess (deficiency) of revenues over
(under) expenditures (244,385) (242,885) (237,794) 5,091 Other Financing Sources
Transfers in 239,081 239,081 239,080 (1)
Total other financing sources 239,081 239,081 239,080 (1) Net change in fund balance (5,304) (3,804) 1,286 5,090
Fund Balance
Beginning 45,908 45,908 45,908 -
Ending 40,604 $ 42,104 $ 47,194 $ 5,090 $
Budgeted Amounts
City of Hawthorne
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
2019 Pension Obligation Bond Debt Service Fund
For the Fiscal Year Ended June 30, 2024
-178-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Charges for services - $ - $ 11,957 $ 11,957 $
Use of money and property - - 1,340 1,340
Total revenues - - 13,297 13,297
Expenditures
Debt service:

Principal retirement 2,865,000 2,865,000 2,865,000 -
Interest and fiscal charges 3,816,186 3,816,186 3,828,686 (12,500) Total expenditures 6,681,186 6,681,186 6,693,686 (12,500) Excess (deficiency) of revenues over
(under) expenditures (6,681,186) (6,681,186) (6,680,389) 797 Other Financing Sources
Transfers in 6,526,432 6,526,432 6,587,715 61,283
Total other financing sources 6,526,432 6,526,432 6,587,715 61,283 Net change in fund balance (154,754) (154,754) (92,674) 62,080 Fund Balance (Deficit)
Beginning (2,087,492) (2,087,492) (2,087,492) -
Ending (2,242,246) $ (2,242,246) $ (2,180,166) $ 62,080 $ Budgeted Amounts
City of Hawthorne
Combining Statement of Net Position
Internal Service Funds
June 30, 2024
-179-
Equipment Hardware Insurance
Replacement Replacement Reserve Total
Current Assets:

Cash and investments 4,261,026 $ 3,000,000 $ -$ 7,261,026 $ Receivables:

Accounts 5,756 - 19,762 25,518
Inventories 14,311 - - 14,311
Total current assets 4,281,093 3,000,000 19,762 7,300,855 Noncurrent assets:

Capital assets, net of depreciation/amortization 2,403,474 - - 2,403,474 Total noncurrent assets 2,403,474 - - 2,403,474
Total assets 6,684,567 3,000,000 19,762 9,704,329
Deferred Outflows of Resources
Pension related 285,802 - 346,005 631,807
Current liabilities:

Accounts payable 653,193 - 32,035 685,228
Accrued liabilities 14,109 - 7,256 21,365
Compensated absences 8,954 - - 8,954
Claims and judgements - 1,318,942 - 1,318,942
Subscription liability 11,506 - - 11,506
Total current liabilities 687,762 1,358,233 - 2,045,995 Noncurrent liabilities:

Compensated absences 35,815 - - 35,815
Claims and judgements - 5,275,768 - 5,275,768
Net pension liability 282,935 - 342,535 625,470
Total noncurrent liabilities 318,750 5,618,303 - 5,937,053 Total liabilities 1,006,512 6,976,536 - 7,983,048
Deferred Inflows of Resources
Pension related 3,706 - 4,487 8,193
Net Position (defioit)
Net investment in capital assets 2,391,968 - - 2,391,968 Unrestricted 3,568,183 3,000,000 (6,615,256) (47,073)
Total net position $ 5,960,151 $ 3,000,000 $ (6,615,256) $ 2,344,895 Liabilities
Assets
City of Hawthorne
Combining Statement of Revenues, Expenses and Changes in Fund Net Position Internal Service Funds
For the Fiscal Year Ended June 30, 2024
-180-
Equipment Hardware Insurance
Replacement Replacement Reserve Total
Operating Revenues
Sales and service charges 3,053,226 $ - $ 5,742,329 $ $ 8,795,555 Miscellaneous 88,480 - - 88,480
Total operating revenues 3,141,706 5,742,329 8,884,035 - Operating Expenses
Public Safety 120,593 - - 120,593
Administration and general 1,099,053 - 418,637 1,517,690 Materials and supplies 595,382 - 805 596,187
Contractual services 341,293 6,389,874 - 6,731,167
Depreciation 325,413 - - 325,413
Total operating expenses 2,481,734 6,809,316 9,291,050 - Operating income (loss) 659,972 (1,066,987) - (407,015) Change in net position before
transfers 659,972 (1,066,987) - (407,015)
Transfers
Transfers in 2,000,000 3,000,000 5,000,000 -
Transfers out (89,664) - (69,994) (159,658)
Total transfers 1,910,336 3,000,000 (69,994) 4,840,342
Change in net position 2,570,308 3,000,000 (1,136,981) 4,433,327 Net Position (Deficit)
Beginning 3,389,843 (5,478,275) - (2,088,432)
Ending $ 5,960,151 $ 3,000,000 $ (6,615,256) $ 2,344,895 City of Hawthorne
Combining Statement of Cash Flows
Internal Service Funds
For the Fiscal Year Ended June 30, 2024
-181-
Equipment Hardware Insurance
Replacement Replacement Reserve Total
Cash flows from operating activities
Cash received from customers and users $ 3,142,544 $ - $ 5,722,567 $ 8,865,111 Cash paid to suppliers for goods and services (1,595,216) (5,646,862) - (7,242,078) Cash paid to employees for services (324,675) - (5,711) (330,386) Net cash provided (used) by operating activities 1,222,653 - 69,994 1,292,647 Cash flows from noncapital financing activities
Transfer from other service funds 2,000,000 3,000,000 5,000,000 - Transfer to debt service funds (89,664) - (69,994) (159,658) Net cash provided (used) by noncapital
financing activities 1,910,336 3,000,000 (69,994) 4,840,342 Cash flows from capital and related financing activities Acquisition of capital assets (1,060,427) - (1,060,427) - Payments on SBITA/lease (11,260) - - (11,260)
Net cash used for capital and related financing activities (1,071,687) - (1,071,687) - Net increase in cash and cash equivalents 2,061,302 3,000,000 5,061,302 - Cash and cash equivalents, beginning of year 2,199,724 - 2,199,724 - Cash and cash equivalents, end of year $ 4,261,026 $ 3,000,000 $ 7,261,026 - $ Reconciliation of operating income (loss) to net cash
provided by operating activities:

Operating income (loss) $ 659,972 $ (1,066,987) - $ $ (407,015) Adjustments to reconcile operating income (loss) to net cash provided by operating activities:

Depreciation/amortization 325,413 - - 325,413
(Increase) decrease in operating assets:

Accounts receivable 838 - (19,762) (18,924)
Deferred outflows of resources 26,458 - 32,032 58,490
Increase (decrease) in operating liabilities: -
Accounts payable 168,684 - 7,056 175,740
Accrued liabilities 976 - (7,775) (6,799)
Claims and judgements payable - 1,017,065 - 1,017,065
Compensated absences (49,196) - - (49,196)
Net pension liability 96,921 - 117,338 214,259
Deferred inflows of resources (7,413) - (8,973) (16,386) Total adjustments 562,681 1,136,981 - 1,699,662
Net cash provided by operating activities $ 1,222,653 $ - $ 69,994 $ 1,292,647 This page intentionally left blank.

STATISTICAL SECTION
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City of Hawthorne
Statistical Section
-182-
This section of the City’s annual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the government’s overall financial health.

Page
Financial Trends 183
Revenue Capacity 193
Debt Capacity 198
Demographic and Economic Information 204
Operating Information 207
These schedules contain service and infrastructure data to help the reader understand how the information in the City's financial report relates to the services the government provides and the activities it performs.

CONTENTS
These schedules contain trend information to help the reader understand how the City's financial performance and well being have changed over time.

These schedules contain information to help the reader assess one of the City's most significant local revenue source, the property tax.

These schedules present information to help the reader assess the affordability of the City's current levels of outstanding debt and its ability to issue additional debt in the future.

These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place.

Sources: Unless otherwise noted, the information in these schedules is derived from the annual comprehensive financial reports for the relevant year.

City of Hawthorne
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
-183-
2015 2016 2017 2018 2019
Governmental Activities:

Net investment in capital assets $ 98,764,480 $ 98,816,219 $ 104,229,572 $ 105,088,517 $ 113,929,703 Restricted for:

Public safety 205,942 293,845 1,400,432 539,905 908,793 Community development 6,983,229 3,211,422 4,086,416 6,417,462 7,686,125 Parks and recreation - - - - -
Public works - 5,821,832 6,174,648 6,772,717 7,328,057
Capital improvements 4,028,388 4,428,834 4,243,801 4,974,337 3,787,315 Debt service 1,751,788 1,989,372 1,776,572 1,785,449 2,287,599 Unrestricted (100,463,431) (104,694,912) (114,897,815) (199,077,160) (195,983,739) Total governmental activities net position 11,270,396 $ $ 9,866,612 $ 7,013,626 $ (73,498,773) $ (60,056,147) Business-type activities:

Net investment in capital assets $ 10,761,597 $ 10,443,914 $ 10,034,549 $ 9,657,296 $ 9,269,159 Unrestricted (446,027) 770,871 1,479,009 863,905 994,105 Total business-type activities net position 10,315,570 $ $ 11,214,785 $ 11,513,558 $ 10,521,201 $ 10,263,264 Primary Government:

Net investment in capital assets $ 109,526,077 $ 109,260,133 $ 114,264,121 $ 114,745,813 $ 123,198,862 Restricted for:

Public safety 205,942 293,845 1,400,432 539,905 908,793 Community development 6,983,229 3,211,422 4,086,416 6,417,462 7,686,125 Parks and recreation - - - - -
Public works - 5,821,832 6,174,648 6,772,717 7,328,057
Capital improvements 4,028,388 4,428,834 4,243,801 4,974,337 3,787,315 Debt service 1,751,788 1,989,372 1,776,572 1,785,449 2,287,599 Unrestricted (100,909,458) (103,924,041) (113,418,806) (198,213,255) (194,989,634) Total primary government net position $ 21,585,966 $ 21,081,397 $ 18,527,184 $ (62,977,572) $ (49,792,883) Fiscal Year
Source: City of Hawthorne, Finance Department
-184-
2020 2021 2022 2023 2024
$ 115,535,476 $ 115,055,399 $ 117,437,597 $ 135,562,068 $ 149,390,159 2,132,992 1,220,865 1,441,602 1,240,790 1,892,112
7,489,182 7,628,820 7,937,659 8,189,764 7,204,311
221,702 523,567 439,384 475,684 451,871
12,391,232 14,519,981 16,267,086 17,717,046 17,566,534
4,273,286 4,466,496 4,906,446 4,914,903 6,747,980
2,443,670 2,483,866 2,242,510 285,016 329,603
(196,188,925) (196,644,055) (122,568,622) (144,430,630) (126,435,776) $ (51,701,385) $ (50,745,061) $ 28,103,662 $ 23,954,641 $ 57,146,794 $ 8,894,639 $ 8,638,581 $ 11,008,202 $ 11,296,460 $ 11,470,932 4,414,574 5,036,958 4,953,411 5,972,118 5,959,822
$ 13,309,213 $ 13,675,539 $ 15,961,613 $ 17,268,578 $ 17,430,754 $ 124,430,115 $ 123,693,980 $ 128,445,799 $ 146,858,528 $ 160,861,091 2,132,992 1,220,865 1,441,602 1,240,790 1,892,112
7,489,182 7,628,820 7,937,659 8,189,764 7,204,311
221,702 523,567 439,384 475,684 451,871
12,391,232 14,519,981 16,267,086 17,717,046 17,566,534
4,273,286 4,466,496 4,906,446 4,914,903 6,747,980
2,443,670 2,483,866 2,242,510 285,016 329,603
(191,774,351) (191,607,097) (117,615,211) (138,458,512) (120,475,954) $ (38,392,172) $ (37,069,522) $ 44,065,275 $ 41,223,219 $ 74,577,548 Fiscal Year
City of Hawthorne
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
-185-
2015 2016 2017 2018 2019
Expenses:

Governmental Activities:

General government $ 9,677,945 $ 9,959,013 $ 11,094,220 $ 14,701,855 $ 14,732,354 Public safety 48,115,574 47,961,278 54,633,003 54,381,340 54,981,502 Community development 15,380,435 11,948,791 12,849,025 15,498,320 14,471,029 Parks and recreation 2,097,720 3,539,851 3,827,432 4,521,785 4,365,183 Public works 14,921,503 10,020,953 12,051,189 10,335,197 13,563,064 Interest on long-term debt 2,084,801 2,862,959 918,037 1,348,742 1,003,660 Total governmental activities expenses 92,277,978 86,292,845 95,372,906 100,787,239 103,116,792 Business-type activities:

Airport 949,809 931,989 1,131,440 1,230,891 1,745,924
Sewer and storm drain 1,581,953 838,433 933,015 2,342,547 884,469 Total business-type activities expenses 2,531,762 1,770,422 2,064,455 3,573,438 2,630,393 Total primary government expenses 94,809,740 88,063,267 97,437,361 104,360,677 105,747,185 Program Revenues:

Governmental Activities:

General government (1) 9,966,590 11,770,484 11,224,984 11,003,976 11,202,311 Public safety 5,595,120 9,250,179 5,460,890 5,673,185 6,089,974 Community development (1) 21,395,006 7,923,370 12,460,275 13,194,352 14,155,829 Parks and recreation 785,977 663,082 642,713 709,246 637,610 Public works 7,104,305 4,682,406 9,318,132 6,181,485 13,830,239 Total governmental activities program revenues 44,846,998 34,289,521 39,106,994 36,762,244 45,915,963 Business-type activities:

Airport 919,129 860,162 908,988 1,009,726 882,878
Sewer and storm drain 1,648,704 1,459,572 1,448,366 1,559,160 1,482,507 Total business-type activities program revenues 2,567,833 2,319,734 2,357,354 2,568,886 2,365,385 Total primary government program revenues 47,414,831 36,609,255 41,464,348 39,331,130 48,281,348 Net (expenses) revenues:

Governmental activities (47,430,980) (52,003,324) (56,265,912) (64,024,995) (57,200,829) Business-type activities 36,071 549,312 292,899 (1,004,552) (265,008) Total primary government net (expenses)/revenues (47,394,909) (51,454,012) (55,973,013) (65,029,547) (57,465,837) Notes:
(1) Beginning in fiscal year 2009-2010, all costs relating to the construction inspection function are reported under community development instead of highways, streets, and parks. Also, the storm water management function is under general government instead of highways, streets, and parks.

Source: City of Hawthorne, Finance Department
Fiscal Year
-186-
2020 2021 2022 2023 2024
$ 11,217,900 $ 13,076,135 $ 10,495,723 $ 18,556,345 $ 16,820,840 59,715,116 64,422,256 8,867,389 100,223,524 71,667,280
15,845,559 16,134,233 14,158,033 16,020,080 18,779,695
3,832,039 3,588,888 3,234,730 5,755,134 6,092,428
10,587,442 11,234,733 11,318,323 14,305,443 15,874,801
4,903,784 4,882,047 4,699,446 4,535,860 4,439,565
106,101,840 113,338,292 52,773,644 159,396,386 133,674,609 1,603,543 1,155,254 808,620 1,209,697 1,466,634
709,837 706,086 642,025 385,151 933,692
2,313,380 1,861,340 1,450,645 1,594,848 2,400,326
108,415,220 115,199,632 54,224,289 160,991,234 136,074,935 10,219,365 10,261,589 12,193,870 20,180,711 20,969,476
5,006,103 5,999,374 6,732,123 8,085,082 7,047,480
16,745,927 17,223,580 17,614,291 20,152,742 27,553,728
445,260 307,385 562,525 568,916 970,295
12,524,253 6,908,300 9,131,706 9,335,044 12,572,803
44,940,908 40,700,228 46,234,515 58,322,495 69,113,782
1,497,105 1,023,571 1,993,209 1,000,940 1,035,369
1,335,231 1,399,410 1,490,743 1,636,519 1,231,979
2,832,336 2,422,981 3,483,952 2,637,459 2,267,348
47,773,244 43,123,209 49,718,467 60,959,954 71,381,130
(61,160,932) (72,638,064) (6,539,129) (101,073,891) (64,560,827) 518,956 561,641 2,033,307 1,042,611 (132,978)
(60,641,976) (72,076,423) (4,505,822) (100,031,280) (64,693,805) Fiscal Year
City of Hawthorne
Changes in Net Position, (continued)
Last Ten Fiscal Years
(accrual basis of accounting)
-187-
2015 2016 2017 2018 2019
General Revenues and Other Changes in Net
Positions:

Governmental activities:

Taxes:

Property taxes $ 15,582,864 $ 14,693,230 $ 17,000,228 $ 17,212,040 $ 18,297,687 Sales taxes 14,521,823 14,721,975 16,856,609 18,498,130 28,408,757 Transient occupancy taxes 3,357,279 4,806,401 5,200,111 5,412,476 5,970,823 Franchise taxes 1,833,145 1,809,159 1,724,565 1,765,717 2,171,334 Business license taxes 4,947,687 6,419,659 5,615,982 6,314,957 6,921,485 Utility users tax 6,842,540 6,667,384 6,613,873 6,726,815 6,358,691 Other taxes 115,589 - - - -
Miscellaneous revenue 159,031 1,060,219 1,649,614 11,507,607 2,104,588 Gain on sale of assets - - - - -
Use of money and property 9,017 69,833 40,189 100,699 410,090 Transfers in/(out) - - - - -
Total governmental activities 47,368,975 50,247,860 54,701,171 67,538,441 70,643,455 Business-type activities:

Miscellaneous - 23,963 5,874 12,195 7,071
Transfers in/(out) - - - - -
Total business-type activities - 23,963 5,874 12,195 7,071 Total primary government 47,368,975 50,271,823 54,707,045 67,550,636 70,650,526 Change in Net Position:

Governmental activities (62,005) (1,755,464) (1,564,741) 3,513,446 13,442,626 Business-type activities 36,071 573,275 298,773 (992,357) (257,937) Total primary government $ (25,934) $ (1,182,189) $ (1,265,968) $ 2,521,089 $ 13,184,689 Source: City of Hawthorne, Finance Department
Fiscal Year
Source: City of Hawthorne, Finance Department
-188-
2020 2021 2022 2023 2024
$ 20,793,917 19,494,231 $ 21,799,982 $ 22,825,681 $ 24,417,302 $ 32,184,097 28,627,941 38,271,401 40,393,795 36,012,398
4,186,432 5,548,885 6,071,367 7,891,009 6,846,103
2,277,912 1,980,644 2,536,844 3,090,928 3,693,594
6,293,567 7,851,079 9,456,866 9,452,193 10,541,480
6,837,852 6,476,401 7,459,343 8,792,532 8,029,444
- - - 676,610 189,024
620,764 850,007 749,456 1,185,504 1,529,779
- 177,628 - - -
188,680 999,325 (1,166,634) 2,421,009 6,269,230
211,167 (2,490,447) 209,227 195,609 224,626
73,594,388 69,515,694 85,387,852 96,924,870 97,752,980
15,852 36,546 461,994 459,963 519,780
(211,167) 2,490,447 (209,227) (195,609) (224,626)
(195,315) 2,526,993 252,767 264,354 295,154
73,399,073 72,042,687 85,640,619 97,189,224 98,048,134
956,324 8,354,762 78,848,723 (4,149,021) 33,192,153
3,045,949 366,326 2,286,074 1,306,965 162,176
$ 11,400,711 $ 1,322,650 $ 81,134,797 $ (2,842,056) $ 33,354,329 Fiscal Year
City of Hawthorne
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
-189-
2015 2016 2017 2018 2019
General Fund:

GASB 54:

Nonspendable $ 4,223,582 $ 3,217,524 $ 53,986 $ 49,432 $ 52,198 Restricted - - - - -
Unassigned 11,846,918 10,763,286 16,615,228 26,066,029 37,202,338 Total General Fund 16,070,500 13,980,810 16,669,214 26,115,461 37,254,536 All Other Governmental Funds:

GASB 54:

Nonspendable 335,181 - - -
Restricted 15,071,577 15,412,581 17,790,488 21,191,173 21,997,889 Unassigned (3,391,518) (1,874,224) (625,215) (911,566) (760,486) Total all other governmental funds 11,680,059 13,873,538 17,165,273 20,279,607 21,237,403 Total governmental funds $ 27,750,559 $ 27,854,348 $ 33,834,487 $ 46,395,068 $ 58,491,939 Fiscal Year
Source: City of Hawthorne, Finance Department
-190-
2020 2021 2022 2023 2024
$ 80,632 $ 1,900,896 $ 69,652 $ 67,458 $ 70,471
- 36,529 36,529 36,529 36,529
44,563,186 57,837,119 78,747,034 93,988,358 109,366,673 44,643,818 59,774,544 78,853,215 94,092,345 109,473,673 20,318 - - - 88,000
28,952,064 30,807,066 33,192,169 33,300,890 35,112,998
(2,123,366) (2,427,492) (3,259,095) (4,449,863) (8,236,124) 26,849,016 28,379,574 29,933,074 28,851,027 26,964,874
$ 71,492,834 $ 88,154,118 $ 108,786,289 $ 122,943,372 $ 136,438,547 Fiscal Year
City of Hawthorne
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
-191-
2015 2016 2017 2018 2019
Revenues:

Taxes $ 52,613,639 $ 54,107,964 $ 58,115,240 $ 63,954,559 $ 75,799,317 Licenses and permits 3,890,427 2,291,930 2,535,471 3,384,070 4,121,946 Intergovernmental 26,682,989 16,469,698 22,245,586 21,283,289 22,515,800 Charges for services 2,170,626 2,500,544 2,412,936 2,325,798 2,631,104 Fines and forfeitures 3,527,228 3,934,011 5,850,331 3,101,340 4,241,409 Use of money and property 446,438 471,056 530,465 580,685 937,192 Contributions 365,361 188,206 873,620 888,145 3,670,175 Miscellaneous 6,793,843 5,279,485 5,392,496 12,435,535 4,093,289 Total Revenues 96,490,551 85,242,894 97,956,145 107,953,421 118,010,232 Expenditures:

Current:

General government (1) 7,299,439 9,517,701 9,388,771 10,130,387 12,073,085 Public safety 42,841,325 43,038,523 46,173,983 49,374,104 50,438,881 Community development (1) 14,241,571 12,590,103 12,747,063 14,603,141 13,807,096 Parks and recreation 1,703,966 3,467,866 3,654,856 3,743,089 3,767,113 Public works 11,755,008 8,202,451 13,565,765 11,786,057 18,750,519 Capital outlay 13,571,753 2,438,251 3,164,810 2,183,616 3,360,606 Debt service:

Principal retirement 3,741,924 4,010,186 5,473,428 2,365,154 2,414,644 Interest and fiscal charges 2,224,946 2,658,786 980,189 1,207,292 1,142,617 Bond issuance costs - 941,625 108,692 - -
Total expenditures 97,379,932 86,865,492 95,257,557 95,392,840 105,754,561 Excess/(deficiency) of Revenues Over Expen (889,381) (1,622,598) 2,698,588 12,560,581 12,255,671 Other financing sources (uses):

Issuance of debt 31,803,741 - 2,730,900 - -
Gain on sale of land held for resale
Premium on bonds issued
Discount on bonds issued
Payment to bond escrow agent (29,910,984) - - - -
Proceeds from disposal of assets - - - - -
Loan proceeds - - - - -
Bond proceeds - - - - -
Capital Lease proceeds - - 550,651 - -
Subscription acquisition - - - - -
Transfers in 4,034,710 5,894,967 2,759,313 2,804,428 2,950,318 Transfers out (4,730,250) (5,894,967) (2,759,313) (2,804,428) (3,109,118) Total other financing sources (uses) (695,540) 1,892,757 3,281,551 (158,800) - Net Change in Fund Balances $ (1,584,921) $ 270,159 $ 5,980,139 $ 12,560,581 $ 12,096,871 Debt service as a percentage of noncapital ex 6.25% 7.89% 7.34% 4.05% 4.40% Notes:
(1) Beginning in fiscal year 2009-2010, all costs relating to the construction inspection function are reported under community development instead of highways, streets, and parks. Also, the storm water management function is under general government instead of highways, streets, and parks.

Source: City of Hawthorne, Finance Department
Fiscal Year
-192-
2020 2021 2022 2023 2024
$ 73,088,871 $ 76,549,888 $ 89,449,254 $ 97,282,234 $ 93,641,913 3,861,839 2,268,593 1,987,892 1,746,860 2,035,110
24,208,218 25,920,897 28,410,517 38,969,342 46,001,617
2,605,973 2,465,164 3,378,713 5,236,034 5,117,107
4,621,263 2,996,112 4,485,414 5,405,531 4,020,318
1,420,058 782,986 (686,139) 2,924,818 7,023,048
4,640,773 492,799 1,854,290 200,000 200,000
2,025,498 1,782,379 1,894,159 3,207,985 2,622,420
116,472,493 113,258,818 130,774,100 154,972,804 160,661,533 32,079,731 10,589,644 11,870,620 20,484,434 19,332,706
120,366,980 47,760,972 54,876,411 56,901,806 58,062,768 24,445,268 15,033,877 15,619,482 15,765,070 19,534,211
10,795,897 2,901,385 3,704,975 5,584,740 5,304,040
21,327,728 9,776,751 12,723,514 12,635,793 14,210,768
2,408,275 1,070,437 1,237,324 19,338,781 15,623,046
4,718,303 4,861,023 5,638,129 6,124,000 5,904,300
3,694,549 4,995,712 4,866,191 4,693,492 4,578,803
1,112,189 - - - -
220,948,920 96,989,801 110,536,646 141,528,116 142,550,642 (104,476,427) 16,269,017 20,237,454 13,444,688 18,110,891 121,865,000 - - - -
- - - - -
8,602 - - - -
- - - - -
- - - - -
- - - - -
- - - 400,042 -
8,423,404 11,510,975 12,375,331 17,532,349 31,895,480
(12,819,684) (11,118,708) (11,980,614) (17,219,996) (36,511,196) 117,477,322 392,267 394,717 712,395 (4,615,716)
$ 13,000,895 $ 16,661,284 $ 20,632,171 $ 14,157,083 $ 13,495,175

3.89% 10.53% 10.04% 9.04% 9.02%
Fiscal Year
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City of Hawthorne
Assessed Value and Estimated Actual Value of Taxable Property (1) Last Ten Fiscal Years
-193-
Fiscal
Year
Ended
June 30 Secured Unsecured
Less:

Exemptions
Taxable
Assessed Value
Direct Tax
Rate (2)
2015 5,975,266,047 $ 271,246,528 $ (38,278,306) $ 6,208,234,269 $ 0.09115 2016 6,360,930,083 261,718,287 (38,794,555) 6,583,853,815 0.09137 2017 6,761,280,688 586,347,166 (70,829,245) 7,276,798,609 0.09174 2018 7,149,882,995 639,095,098 (62,805,701) 7,726,172,392 0.09127 2019 7,532,179,160 732,745,553 (75,014,723) 8,189,909,990 0.09104 2020 7,971,171,054 728,823,022 (69,188,809) 8,630,805,267 0.08950 2021 8,394,513,934 871,235,153 (89,168,195) 9,176,580,892 0.08648 2022 8,771,167,546 740,382,503 (106,971,423) 9,404,578,626 0.08939 2023 9,143,741,870 997,321,789 (67,095,584) 10,073,968,075 0.08939 2024 9,650,550,517 1,189,309,755 (98,589,184) 10,842,229,863 0.08517 Notes:
(2) Tax Rate Area 13-115.

Source: Los Angeles County Assessor 2023/24 Combined Tax Rolls point, the new assessed value is re-assessed at the purchase price of the property sold. The assessed (1) In 1978 the voters of the State of California passed Proposition 13 which limited property 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 increase of 2%). With few exceptions, property is only re-assessed at the time that it is sold to a new owner. At that value of taxable property and is subject to the limitations described above. valuation data shown above represents the only data currently available with respect to the actual market City of Hawthorne
Direct and Overlapping Property Tax Rates (1)
Last Ten Fiscal Years
(rate per $100 of assessed value)
-194-
2015 2016 2017 2018 2019
City basic rate 0.09484 0.09484 0.09484 0.09484 0.09484 Redevelopment agency
Overlapping Rates
El Camino Community College 0.01742 0.01745 0.02294 0.02120 0.02223 Hawthorne School District 0.10620 0.10176 0.09553 0.08818 0.08395 Inglewood Unified School Dist 0.14992 0.12761 0.11351 0.11675 0.13079 LA Community College District 0.04017 0.03575 0.03596 0.04599 0.04621 Lawndale Elementary School Dist 0.04334 0.04207 0.04064 0.06143 0.06385 Lennox School District 0.08464 0.08456 0.09078 0.16337 0.16522 Los Angeles Unified School District 0.14688 0.12971 0.13110 0.12219 0.12323 Metropolitan Water District 0.00350 0.00350 0.00350 0.00350 0.00350 Wiseburn School District 0.13062 0.13341 0.10166 0.11222 0.10532 Wiseburn-Centinela Unified 0.16730 0.14481 0.16592 0.13062 0.17572 Total Direct Rate 0.09115 0.09137 0.09174 0.09127 0.08993 Notes:
(1) In 1978, California voters passed Proposition 13 which sets the property tax rate at a 1% fixed amount. This 1% is shared by all taxing agencies in which the subject property resides. In addition to the 1% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of various voter-approved bonds.
(2) Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all property owners.
(3) City's Share of 1% Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the City. The ERAF portion of the City's Levy has been subtracted where known. (4) Redevelopment Rate is based on the largest RDA tax rate area and only includes 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. The approval of ABX1 26 eliminated Redevelopment from the State of California for the fiscal year 2012/13 and years thereafter.
(5) Total Direct Rate is the weighted average of all individual direct rates applied by the City/Agency preparing the statistical section information and excludes revenues derived from aircraft. Beginning in 2013/14 the Total Direct Rate no longer includes revenue generated from the former redevelopment tax rate areas. Challenges to recognized enforceable obligations are assumed to have been resolved during 2012/13. For the purposes of this report, residual revenue is assumed to be distributed to the City/Agency in the same proportions as general fund revenue.

Fiscal Year
-195-
2020 2021 2022 2023 2024

0.09484 0.09484 0.09484 0.09484 0.09484

0.02155 0.02362 0.02264 0.02299 0.02116

0.11025 0.10069 0.09933 0.08637 0.06723

0.09832 0.09294 0.14381 0.12904 0.07881

0.02717 0.04016 0.04376 0.02488 0.06023

0.06343 0.06246 0.05494 0.05821 0.05750

0.17202 0.17062 0.16888 0.16320 0.16423

0.12552 0.13993 0.11323 0.12107 0.12422

0.00350 0.00350 0.00350 0.00350 0.00350

0.11111 0.08507 0.08631 0.09948 0.10150

0.15734 0.18371 0.17242 0.18567 0.14387

0.08950 0.08648 0.08939 0.08625 1.82225
Fiscal Year
City of Hawthorne
Principal Property Taxpayers
Current Year and Nine Years Ago
-196-
2023/2024 2014/2015
Taxpayer
Taxable
Assessed Value
(1) Rank
Percentage
of Total City
Taxable
Assessed
Value
Taxable
Assessed
Value (1) Rank
Percentage
of Total City
Taxable
Assessed
Value
SPACE EXPLORATION TECHNOLOGIES CORP $ 713,339,704 1 6.58 % HOLSTON DC ASSETS LLC 112,608,000 2 1.04
DCT CARGO LLC 91,513,963 3 0.84 67,063,089 $ 1 1.08 %

FALCON LANDING LLC
(Pending Appeals On Parcels) 91,190,775 4 0.84
BSP ZELMAN HAWTHORNE LLC 88,599,590 5 0.82 42,119,724 5 0.68 COSTCO WHOLESALE CORPORATION 66,786,978 6 0.62 55,289,688 2 0.89 HAWTHORNE CREATIVE LLC 66,677,419 7 0.61
EQUITY HOLDINGS LLC 61,997,640 8 0.57
15000 AVIATION VENTURES LLC 60,439,650 9 0.56
RT ROCKET ROAD LLC 57,814,819 10 0.53
RS HAWTHORNE LLC 51,069,140 3 0.82

M AND A GABAEE
45,110,198 4 0.73
OCEANGATE PROPERTY LLC 39,456,545 6 0.64
CCF PCG HAWTHORNE LLC 34,179,688 7 0.55
TRIUMPH AEROSTRUCTURES VOUGHT AIRCRAF 34,056,697 8 0.55 HAWTHORNE GATEWAY LP 31,900,137 9 0.51
TARGET CORP 30,986,694 10 0.50
Total $ 13.01 1,410,968,538 % 431,231,600 $ 6.95 %
Note:

The amounts shown above include assessed value date for both the City and the Successor Agency (former Redevelopment Agency).

Source: HDL Coren & Core, Los Angeles County Assessor 2023/2024 Combined Tax Rolls City of Hawthorne
Property Tax Levies and Collections
Last Ten Fiscal Years
-197-
Fiscal
Year Taxes Levied Collections in
Ended for the Fiscal Percentage Subsequent
June 30, Year Amount of Levy Years Amount Percentage
2015 $ 5,513,166 6,088,145 $ 90.56 $ 5,513,166 - $ 90.56 2016 6,479,711 5,109,479 78.85 - 5,109,479 78.85
2017 7,170,731 6,339,236 88.40 - 6,339,236 88.40
2018 7,600,938 6,731,784 88.57 350,002 7,081,786 93.17
2019 8,045,958 7,121,892 88.52 132,075 7,253,967 90.16
2020 8,468,355 8,048,688 95.04 216,167 8,264,855 97.60
2021 8,979,687 8,658,320 96.42 230,657 8,888,976 98.99
2022 9,198,418 9,083,898 98.76 620,967 9,704,865 105.51 2023 9,760,440 9,548,020 97.82 532,296 10,080,316 103.28 2024 10,453,491 10,166,094 97.25 383,094 10,549,189 100.92 Source: Los Angeles County Auditor and Controller Office.

Collected within the Fiscal
Year of the Levy Total Collections to Date
City of Hawthorne
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
-198-
Fiscal
Year
General
Obligation
Bonds
Revenue
Bonds
Notes
Payable Capital Leases
Subscription
Payable Loans Payable
Total Primary
Government
Percentage
of Personal
Income
2015 - $ 7,828,114 $ - $ 22,219 $ - $ 3,580,698 $ 11,431,031 $ 0.007 2016 31,684,772 7,174,930 - 6,778 3,218,691 - 42,085,171 0.023 2017 30,032,646 4,353,127 2,587,550 482,893 2,856,328 - 40,312,544 0.022 2018 29,211,468 3,178,249 2,419,000 378,119 2,493,585 - 37,680,421 0.020 2019 27,752,014 2,618,249 2,247,100 269,455 2,130,448 - 35,017,266 0.018 2020 26,352,538 1,987,303 2,067,000 156,759 1,766,893 - 32,330,492 0.016 2021 141,764,586 1,354,131 1,884,150 39,880 1,757,899 - 146,800,646 0.066 2022 137,170,635 691,503 1,693,650 44,749 1,400,000 - 141,000,536 0.064 2023 132,121,683 1,501,150 - 15,964 72,892 1,045,000 134,756,689 0.053 2024 126,891,750 1,301,850 - - 11,506 128,205,106 - 0.045 Note:
(1) General bonded debt is debt payable with governmental fund resources. Details regarding the City's outstanding debt can be found in the notes to basic financial statements.

Source: City Finance Department.

Governmental Activities (1)
City of Hawthorne
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
-199-
Fiscal
Year
General
Obligation
Bonds
Revenue Bonds
(1) Total
Percent of
Assessed
Value (2) Per Capita
2015 - $ 7,828,114 $ 7,828,114 $ 0.126 90
2016 31,684,772 7,174,930 38,859,702 0.590 442
2017 30,032,646 4,353,127 34,385,773 0.473 392
2018 29,211,468 3,178,249 32,389,717 0.419 365
2019 27,752,014 2,618,249 30,370,263 0.371 346
2020 26,352,538 1,987,303 28,339,841 0.328 326
2021 141,764,586 1,354,131 143,118,717 1.560 1,645
2022 137,170,635 691,503 137,862,138 1.466 1,588
2023 132,121,683 - 132,121,683 1.312 1,542
2024 126,891,750 - 126,891,750 1.170 1,483
Notes:
(1) The revenue bonds are secured by lease payments to be made by the City (2) Assessed value has been used because actual value of taxable property is not readily available in the State of California.

Source: City Finance Department.

City of Hawthorne
Legal Debt Margin Information
Last Ten Fiscal Years
-200-
2015 2016 2017 2018 2019
Total assessed valuation $ 6,583,853,815 6,208,234,269 $ 7,276,798,609 $ 7,726,172,392 $ 8,189,909,990 $ Conversion percentage 25% 25% 25% 25% 25%
Adjusted assessed valuation 1,552,058,567 1,645,963,454 1,819,199,652 1,931,543,098 2,047,477,498 Debt limit percentage 15% 15% 15% 15% 15%
Debt limit 232,808,785 246,894,518 272,879,948 289,731,465 307,121,625 Total net debt applicable to limit:

General obligation bonds - - - - -
Legal debt margin $ 232,808,785 $ 246,894,518 $ 272,879,948 $ 289,731,465 $ 307,121,625 Total debt applicable to the limit
as a percentage of debt limit 0.000% 0.000% 0.000% 0.000% 0.000% Note:

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 the 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 the current full valuation perspective to the 25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local governments located within the State.

Source: City Finance Department
County of Los Angeles Tax Assessor's Office
Fiscal Year
-201-
2020 2021 2022 2023 2024
$ 8,630,805,267 $ 9,176,580,892 $ 9,404,578,626 $ 10,073,968,075 $ 10,842,229,863 25% 25% 25% 25% 25%
2,157,701,317 2,294,145,223 2,351,144,657 2,518,492,019 2,710,557,466 15% 15% 15% 15% 15%
323,655,198 344,121,783 352,671,698 377,773,803 406,583,620 - - - - -
$ 323,655,198 $ 344,121,783 $ 352,671,698 $ 377,773,803 $ 406,583,620

0.000% 0.000% 0.000% 0.000% 0.000%
Fiscal Year
City of Hawthorne
Pledged-Revenue Coverage
Last Ten Fiscal Years
-202-
Debt Service (2)
Fiscal Year Revenue Principal Interest Coverage
2015 999,499 $ 625,939 $ 387,708 $ 0.99
2016 1,249,488 653,184 370,536 1.22
2017 3,744,990 823,428 409,710 3.04
2018 976,241 730,152 187,849 1.06
2019 897,558 754,644 199,655 0.94
2020 973,932 608,203 110,698 1.35
2021 1,003,000 633,172 84,758 1.40
2022 19,698 662,628 57,754 0.03
2023 243,684 691,503 - 0.35
2024 249,634 - - 0
Notes:
(1) Revenue bonds are secured by lease payments to be made by the City (2) Debt service shown is annual debt service.

Source: City Finance Department.

Revenue Bonds (1)
City of Hawthorne
Direct and Overlapping Debt
As of June 30, 2024
-203-
2023-24 Assessed Valuation: $10,842,229,863
OVERLAPPING TAX AND ASSESMENT DEBT:

Metropolitan Water District $ 18,210,000 0.280% 50,988
El Camino Community College District 447,104,356 6.720% 30,045,413 Los Angeles Community College District 5,155,845,000 0.079% 4,073,118 Los Angeles Unified School District 10,723,385,000 0.097% 10,401,683 Centinela Valley Union High School District 230,179,380 37.703% 86,784,532 Centinela Valley Union High School District SFID No. 2016-1 216,840,000 36.210% 78,517,764 Inglewood Unified School District 166,325,000 0.038% 63,204 Wiseburn Unified School District 123,686,771 14.795% 18,299,458 Hawthorne School District 64,771,520 97.236% 62,981,235 Lawndale School District 50,650,000 19.401% 9,826,607
Lennox School District 35,166,818 7.799% 2,742,660
City of Hawthorne Community Facilities District No. 1999-1 2,350,000 100% 2,350,000 City of Hawthorne Community Facilities District No. 2004-1 2,390,000 100% 2,390,000 City of Hawthorne Community Facilities District No. 2006-1 7,830,000 100% 7,830,000 TOTAL GROSS OVERLOPPING TAX & ASSESSMENT DEBT $ 316,356,662 Less: Los Angeles Unified School District supported general obligation bonds $ 290,492 TOTAL NET OVERLAPPING TAX AND ASSESSMENT DEBT $ 316,066,170 DIRECT AND OVERLAPPING GENERAL FUND DEBT:

Los Angeles County General Fund Obligations $ 2,479,229,730 0.541% $ 13,412,633 Los Angeles County Superintendent of Schools Certificates of Participation 2,857,300 0.541% 15,458 Los Angeles Unified School District Certificates of Participation 471,590,000 0.097% 457,442 Centinela Valley Union High School District Certificates of Participation 5,665,000 58.958% 3,339,971 Inglewood Unified School District Certificates of Participation 1,050,000 0.038% 399 Hawthorne School District Certificates of Participation 9,980,000 97.236% 9,704,153 Lennox School District Certificates of Participation 3,340,000 7.799% 260,487 City of Hawthorne Subscription Payable 11,506 100% 11,506 City of Hawthorne General Fund Obligations 19,663,600 100% 19,663,600 City of Hawthorne Pension Obligation Bonds 108,530,000 100% 108,530,000 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT $ 155,395,648 OVERLAPPING TAX INCREMENT DEBT (Successor Agency): $ 17,435,000.00 100% $ 17,435,000 TOTAL DIRECT DEBT $ 128,205,106
TOTAL GROSS OVERLAPPING DEBT $ 360,982,204
TOTAL NET OVERLAPPING DEBT $ 360,691,712
(2) $ 489,187,310
$ 488,896,818
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed 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 and non-bonded capital lease obligations.

Ratios to 2023-24 Assessed Valuation:

Total Gross Overlapping Tax and Assessment Debt…………………………………… 2.92% Total Net Overlapping Tax and Assessment Debt………………………………………. 2.92% Total Direct Debt ($127,218,356)………………………………………………………….. 1.17% Gross Combined Total Debt……………………………………………………………….. 4.50% Net Combined Total debt…………………………………………………………………… 4.50% Ratios to Redevelopment Successor Agency Incremental Valuation ($2,782,924,355):

Total Overlapping Tax and Assessment Debt…………………………………………… 0.63% Total Debt
06/30/24 % Applicable (1)
City's Share of Debt
06/30/24
City of Hawthorne
Demographic and Economic Statistics
Last Ten Calendar Years
-204-
Fiscal
Year
Square
Miles Population
Population
Percentage
Change
Personal Income
(In Thousands)
Per Capita
Personal
Income (1)
Unemployment
Rate (2)
2014 6.08 86,685 0.05% 1,715,583 $ $ 19,791 7.4%
2015 6.08 88,003 1.52% 1,755,987 19,954 6.0%
2016 6.08 87,662 -0.39% 1,801,255 20,548 4.7%
2017 6.08 88,772 1.27% 1,841,485 20,744 5.2%
2018 6.08 87,854 -1.03% 1,958,750 22,296 4.8%
2019 6.08 86,903 -1.08% 2,078,695 23,920 4.4%
2020 6.08 86,999 0.11% 2,233,826 25,676 15.1%
2021 6.08 86,841 -0.18% 2,219,718 25,561 10.4%
2022 6.08 85,702 -1.31% 2,530,079 29,522 5.0%
2023 6.08 85,566 -0.16% 2,821,044 32,969 4.8%
Sources:

HdL Coren & Cone
City of Hawthorne
Principal Employers
Current Year and Nine Years Ago
-205-
Employer
Number of
Employees
Percent of
Total
Employment
Number of
Employees
Percent of
Total
Employment
SpaceX - Space Exploration Technologies 7,428 17.27% 4,781 10.77% Hawthorne School District 1,025 2.38% 801 1.80%
Wiseburn Unified School District 492 1.14% 357 0.80%
Amazon Fulfillment Center (includes Ring HQ) 471 1.10%
OSI Systems Inc 266 0.62% 350 0.79%
Teledyne Relays 245 0.57% 309 0.70%
City of Hawthorne 244 0.57% 328 0.74%
Home Depot* 220 0.51%
South Bay Ford 205 0.48% 225 0.51%
Hawthorne Healthcare and Wellness Center 152 0.35%
Lithographix Inc 242 0.55%
Costco Wholesale 166 0.37%
Target 150 0.34%
Total 25.00% 7,709 10,748 17.36%
Total City Employment (1) 43,000 44,400
Source: MuniServices, LLC / Avenu Insights & Analytics
Source: 2017, previously published ACFR, historical data is unavailable. *Includes FT, and PT Employment
(1) Total City Labor Force provided by EDD Labor Force Data.

Note: 7/17/2024 Per Orange County Register News: Elon Musk announces, SpaceX to move from Hawthorne to Texas. 2024 2015
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City of Hawthorne
Full-time and Part-time Employees by Function
Last Ten Fiscal Years
-206-
Function/Program: 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 General government 132 120 130 129 141 123 131 133 130 131 Public safety 108 112 100 99 97 98 94 97 88 90
Public works, streets maint 46 47 48 45 45 43 40 43 32 34 Comm dev-planning, building, housing 32 28 26 27 30 27 29 31 28 25 Recreation & Comm-serv, parks 94 84 99 92 100 90 89 71 88 85 Total 412 391 403 392 413 381 383 375 366 365
Source: City Finance Department.

Fiscal Year
City of Hawthorne
Operating Indicators by Function
Last Ten Years
-207-
Function/Program 2014-15 2015-16 2016-17 2017-18
Number of new hires including part-time 97 95 84 57
Number of invoices processed 10,007 9,478 21,887 20,958 Public Safety: