Alex Vargas, Mayor
Alex Monteiro, Mayor Pro Tem
Angie Reyes English, Councilmember
Katrina Manning,Councilmember
Faye Johnson, Councilmember
Dayna S. Williams-Hunter, City Clerk
Marie Poindexter-Hornback, City Treasurer
CITY OF HAWTHORNE
CITY COUNCIL REGULAR MEETING
AGENDAFOR FEBRUARY 24, 2026 6:00 PM
COUNCIL CHAMBER AT CITY HALL
4455 W. 126th STREET, HAWTHORNE, CALIFORNIA
MEETING INFORMATION
IF YOU ARE AN INDIVIDUAL WITH A DISABILITY AND NEED REASONABLE
ACCOMMODATION OR MODIFICATION PURSUANT TO THE AMERICANS WITH DISABILITIES
ACT (ADA) PLEASE CONTACT THE CITY CLERK DEPARTMENT AT
[email protected] OR CALL (310) 349-2915 PRIOR TO THE MEETING FOR ASSISTANCE.
THE MEETING IS SHOWN LIVE ON CABLE CHANNEL 22, AND WILL BE REBROADCAST AS
PART OF THE REGULAR CITY COUNCIL, SUCCESSOR AGENCY, AND RELATED MEETINGS ACCORDING TO THE PUBLISHED CABLE SCHEDULE OF PROGRAMS. IT SHALL ALSO BE
BROADCAST LIVE AND BE MADE AVAILABLE THEREAFTER ON THE CITY OF HAWTHORNE'S WEBSITE:
MEETING VIDEO
Or online on YouTube by searching for Hawthorne Community Television ______________________
THE AGENDA, STAFF REPORTS AND ATTACHMENTS ARE AVAILABLE ONLINE AT AGENDA, STAFF REPORTS, ATTACHMENTS AND THEN SELECTING THE DESIRED MEETING.
MEMBERS OF THE PUBLIC MAY INSPECT (AT NO COST) AND/OR OBTAIN COPIES (UPON
PAYMENT OF THE CITY'S CURRENT COPYING FEE) OF ANY REGULAR SESSION ITEM BY CONTACTING THE CITY CLERK DEPARTMENT AT CITY HALL VIA TELEPHONE (310) 349-2915 OR EMAIL [email protected]
CALL TO ORDER
INVOCATION
PLEDGE OF ALLEGIANCE
ROLL CALL
PROCLAMATIONS/CERTIFICATES/PRESENTATIONS
1. Celebrating Black History Month - A. Monterio
2. Los Angeles Dream Center Presentation- Housing Department
3. LA Metro I-105 Project Update Presentation (K. Manning)
4. LA CADA for Homeless Outreach and Related Services- Hawthorne Police Department
PUBLIC COMMENTS
PUBLIC COMMENT INSTRUCTIONS
ANY PERSON DESIRING TO ADDRESS THE CITY COUNCIL AND PARKING AUTHORITY SHOULD COMPLETE
A SPEAKER REQUEST CARD AND SUBMIT THE CARD TO THE CITY CLERK/SECRETARY PRIOR TO THE COMMENCEMENT OF THE CITY COUNCIL, PARKING AUTHORITY AND HOUSING AUTHORITY MEETING.
AFTER OBTAINING PERMISSION TO PROCEED BY THE PRESIDING OFFICER SPEAKERS SHOULD FIRST STATE THEIR FULL NAME AND ADDRESS FOR THE RECORD. THEY THEN SHALL STATE THEIR BUSINESS
FOR ALL GOVERNING BODIES BRIEFLY AND COMPLETELY AND UNLESS GRANTED FURTHER TIME BY A GOVERNING BODY SHALL LIMIT THEIR ADDRESS TO THREE MINUTES. THE THREE-MINUTE LIMIT SHALL INCLUDE GOVERNING BODY OR STAFF RESPONSES, IF ANY, TO QUERIES POSED BY SPEAKERS.
HOWEVER, THE STATE OPEN MEETINGS LAW (GOVERNMENT CODE SECTION 54950 ET SEQ.) PROHIBITS
THE CITY COUNCIL FROM PROVIDING A DETAILED RESPONSE OR ACTING UPON ANY ITEM NOT CONTAINED ON THE AGENDA POSTED 72 HOURS BEFORE A REGULAR MEETING AND 24 HOURS BEFORE A SPECIAL MEETING. ALL REMARKS SHALL BE ADDRESSED TO THE GOVERNING BODIES AS A BODY AND NOT TO ANY PARTICULAR MEMBER THEREOF. THE GOVERNING BODY MAY EITHER DISPOSE OF THE
COMMUNICATION AT THE CLOSE THEREOF OR MAY REFER IT TO AN APPROPRIATE ADMINISTRATIVE OFFICER FOR STUDY, INVESTIGATION, REPORT, AND/OR RECOMMENDATION. DISCUSSION, IF ANY, SHALL BE BY MEMBERS OF A GOVERNING BODY ONLY. (H.M.C. 2.06.180, RESO. NO. 6443)
CITY CLERK'S CONSENT CALENDAR
5. The Finance Department requests approval of the warrants. Motion to approve the warrants.
RECOMMENDED MOTION:
Staff Recommends that the City Council approve the warrants issued for the period of 02/11/2026 to 02/24/2026 for a total of $4,015,891.13.
6. Approval of City Council meeting minutes for the regular meeting of February 10, 2026. Motion to approve minutes.
RECOMMENDED MOTION:
Staff recommends that the Council approve the regular City Council meeting minutes of February 10, 2026.
7. Approval of waiver of full readings of resolutions and ordinances on Tuesday, February 24, 2026's agenda. Motion to waive full readings.
RESOLUTIONS
8. Resolution 8589 to Authorize the City of Hawthorne to Apply for the Prohousing Designation from the California Department of Housing and Community Development.
RECOMMENDED MOTION:
Adopt the resolution.
ORDINANCES
9. ORDINANCE NO. 2261 (FIRST READING) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HAWTHORNE, CALIFORNIA AMENDING CHAPTER 10.36 (STOPPING, STANDING AND PARKING) OF TITLE 10 (VEHICLES AND TRAFFIC) OF THE HAWTHORNE MUNICIPAL CODE TO ESTABLISH PARKING METER ZONES, OPERATIONS, FEES AND PROCEDURES. (Motion to Introduce.)
RECOMMENDED MOTION:
Staff recommends that the City Council Introduce Ordinance No. 2261.
BIDS: OPENINGS & RESULTS
PUBLIC HEARINGS
GENERAL MATTERS
CITY MANAGER'S CONSENT CALENDAR
10. RETIREE HEALTHCARE PLAN June 30, 2025 GASBS 75 Disclosure Report RECOMMENDED MOTION:
Staff recommends that the City Council accept and file the OPEB Disclosure Report for Fiscal Year ending June 30, 2025, and approve the contribution to OPEB Trust.
11. Annual Comprehensive Financial Report of the City of Hawthorne for the Fiscal Year Ended June 30, 2025.
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, 2025.
12. Approval of Memorandum of Understanding with the Los Angeles Dream Center for Homelessness Response Collaboration.
RECOMMENDED MOTION:
Staff recommends that the City Council:
1. Approve the Memorandum of Understanding (MOU) between the City of Hawthorne and the Los Angeles Dream Center; and
2. Authorize the City Manager to execute the MOU in a form approved by the City Attorney.
13. Approval of Agreement with LA CADA for Homeless Outreach and Related Services; Appropriation of $100,000.00 from Opioid Settlement Funding.
RECOMMENDED MOTION:
Staff recommends that the City Council approve the one-year agreement between the City of Hawthorne and LA CADA (Los Angeles Centers for Alcohol and Drug Abuse) for homeless outreach and transportation services, and appropriating $100,000.00 from Opioid Settlement funding.
14. Progress Payment #2 in the amount of $167,152.50 due to Jermax Construction Inc. of San Fernando, CA for Holly Park Restroom Renovation (Project #25-07).
RECOMMENDED MOTION:
City staff recommends that the City Council approve this Progress Payment #2 for Jermax Construction Inc. of San Fernando, CA.
15. First Amendment to the Agreement Between the City of Hawthorne and MNS Engineers, Inc.
RECOMMENDED MOTION:
Approve the First Amendment to the MNS Engineers, Inc. contract with the City.
16. Acquisition of a portable, self-contained camera system for deployment in areas experiencing spikes in SB1383 Illegal dumping and contamination areas.
RECOMMENDED MOTION:
Approve the purchase of a "Wanco Portable Surveillance Camera Trailer" from "WANCO Inc.," for the related cost of $47,860.
17. Progress Payment #7 in the amount of $905,942.73 is due to Martinez Landscape Co., Inc of Sylmar, CA for the City of Hawthorne New City Yard (Project #24-02).
RECOMMENDED MOTION:
Staff recommends that the City Council approve this Progress Payment #7 to Martinez Landscape Co. Inc of Sylmar, CA.
18. Hero Housing Empowerment Recovery And Outreach Community Services Memorandum Of Understanding
RECOMMENDED MOTION:
City Council to approve theMOU for Street Outreach and CaseManagement,and also a Homeless Housing Coordinator to assist our Homeless Services Division.
CITY ATTORNEY'S CONSENT CALENDAR
DISCUSSION ITEMS
19. Hawthorne Municipal Airport News & Developments -- F. Johnson
20. Establishing a Public Works Commission -- K. Manning
21. Proclamation for Fair Housing Month (April) -- A. Monteiro/K. Manning
22. Donation of a Vehicle from SpaceX to the City of Hawthorne -- F. Johnson
ELECTED OFFICIALS REPORTS
COUNCIL DIRECTIVES
CLOSED SESSION
ADJOURNMENT
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS
CITY OF HAWTHORNE )
I, DIANA CUCALON, Deputy City Clerk for the City of Hawthorne, certify that a true and correct copy of the foregoing City Council Meeting Agenda was posted not less than 72 hours before the City Council Meeting to be held on Tuesday, February 24, 2026.
_______________________________________
DIANA CUCALON
HAWTHORNE DEPUTY CITY CLERK
AGENDA ITEM NO. 1.
CITY OF HAWTHORNE
City Council
AGENDA BILL
For the meeting of 02/24/2026
Originating Department: City Manager
SUBJECT:
Celebrating Black History Month - A. Monterio
AGENDA ITEM NO. 2.
CITY OF HAWTHORNE
City Council
AGENDA BILL
For the meeting of 02/24/2026
Originating Department: Housing
SUBJECT:
Los Angeles Dream Center Presentation- Housing Department AGENDA ITEM NO. 3.
CITY OF HAWTHORNE
City Council
AGENDA BILL
For the meeting of 02/24/2026
Originating Department: Public Works
SUBJECT:
LA Metro I-105 Project Update Presentation (K. Manning) AGENDA ITEM NO. 4.
CITY OF HAWTHORNE
City Council
AGENDA BILL
For the meeting of 02/24/2026
Originating Department: Police Department
SUBJECT:
LA CADA for Homeless Outreach and Related Services- Hawthorne Police Department AGENDA ITEM NO. 5.
CITY OF HAWTHORNE
City Council
AGENDA BILL
For the meeting of 02/24/2026
Originating Department: Licensing
City Manager: Department Head:
SUBJECT:
The Finance Department requests approval of the warrants. Motion to approve the warrants.
RECOMMENDED MOTION:
Staff Recommends that the City Council approve the warrants issued for the period of 02/11/2026 to 02/24/2026 for a total of $4,015,891.13.
DISCUSSION:
Staff plan to issue checks to the vendors that provide goods and services to the City of Hawthorne.
ECONOMIC DEVELOPMENT STRATEGIC PLAN:
Develop and implement clear, business-friendly methods of communicating useful and helpful information to vendors
FISCAL IMPACT:
None. Funds for these payments of the amount of $4,015,891.13 are available in the adopted Fiscal Year 2025-2026 budget.
Description of WarrantsAmount
Payroll City Warrants $ 968,170.54
General City Warrants $ 3,044,681.22
Housing Warrants $ 3,039.37
Asset Forfeiture Warrants $ -
Grand Total $ 4,015,891.13
NOTICING PROCEDURE:
72 hours posted notice pursuant to the Ralph M. Brown Act.
ATTACHMENTS
Council Warrants 02/24/26
ORIGINATING DEPARTMENT: FINANCE
The City Treasurer submits the following Payroll City Warrants for your approval:
Date Start Ending Warrant type Total $
2/12/26 41025 41338 PAYROLL 965,402.54
2/12/26 96825 196827 PAYROLL 2,768.00
* Emergency Issue - for ratification only 968,170.54
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 FEBRUARY 24, 2026
Warrant #s
K:\Finance\COUNCIL APPROVAL OF WARRANTS\2026\Council approval of Warrants 022426 ORIGINATING DEPARTMENT: FINANCE
The City Treasurer submits the following General City Warrants for your approval:
Date Start Ending Warrant type Total $
2/10/26 493818 493818 CITY - SPECIAL 757,687.25
2/17/26 493819 493819 CITY - SPECIAL 374.84
2/13/26 493838 493855 DEBT LEVIES 25,419.35
2/24/26 493856 493863 UTILITIES 193,557.65
2/24/26 493864 494012 CITY 2,067,642.13
3,044,681.22
* Emergency Issue - for ratification only
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 FEBRUARY 24, 2026
Warrant #s
City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 02/09/2026 10:12
User: sdixon
Program ID: appdwarr
CHECK: C021026S TO FISCAL 2026/01 07/01/2025 TO 06/30/2026
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 17857 SOUTH BAY REGIONAL PUBLIC
117103 12/01/25 2919 493818 T 02/10/26 10050121 43014 SB REG PUBLIC COMM AUTHOR 757,687.25 INVOICE: 04693
VENDOR TOTALS 1,060,762.15 YTD INVOICED 2,631,362.45 YTD PAID 757,687.25 REPORT TOTALS 757,687.25
COUNT AMOUNT
TOTAL EFT TRANSFERS 1 757,687.25
** END OF REPORT - Generated by Shuntell Dixon **
City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 02/12/2026 13:05
User: sdixon
Program ID: appdwarr
CHECK: C021726 TO FISCAL 2026/01 07/01/2025 TO 06/30/2026
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 124717 ACCESS PARTY RENTALS
117257 02/11/26 493819 P 02/17/26 990 23033 HPD GOOD NEIGHBOR GAMES 374.84 INVOICE: 02112026
VENDOR TOTALS .00 YTD INVOICED 374.84 YTD PAID 374.84
REPORT TOTALS 374.84
COUNT AMOUNT
TOTAL PRINTED CHECKS 1 374.84
** END OF REPORT - Generated by Shuntell Dixon **
City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 02/12/2026 17:42
User: sdixon
Program ID: appdwarr
CHECK: DL021326 TO FISCAL 2026/01 07/01/2025 TO 06/30/2026
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 123239 CA DISBURSEMENT UNIT
117336 02/12/26 493838 P 02/13/26 960 21630 GARNISHMENTS LIABILITY 704.30 INVOICE: 2026-5
VENDOR TOTALS 2,112.90 YTD INVOICED 11,973.10 YTD PAID 704.30 119637 CA SDU, STATE DISBURSEMENT UNIT
117333 02/12/26 493839 P 02/13/26 960 21630 GARNISHMENTS LIABILITY 258.46 INVOICE: 2026-5
VENDOR TOTALS 775.38 YTD INVOICED 4,393.82 YTD PAID 258.46 119685 CA SDU, STATE DISBURSEMENT UNIT
117334 02/12/26 493840 P 02/13/26 960 21630 GARNISHMENTS LIABILITY 142.15 INVOICE: 2026-5
VENDOR TOTALS 426.45 YTD INVOICED 2,416.55 YTD PAID 142.15 124677 CA. STATE DISBURSEMENT UNIT
117343 02/12/26 493841 P 02/13/26 960 21630 GARNISHMENTS LIABILITY 256.73 INVOICE: 2026-5
VENDOR TOTALS .00 YTD INVOICED 770.19 YTD PAID 256.73
124678 CA. STATE DISBURSEMENT UNIT
117345 02/12/26 493842 P 02/13/26 960 21630 GARNISHMENTS LIABILITY 200.30 INVOICE: 2026-5
VENDOR TOTALS .00 YTD INVOICED 600.90 YTD PAID 200.30
124099 CALIFORNIA STATE DISBURSEMENT UNIT
117335 02/12/26 493843 P 02/13/26 960 21630 GARNISHMENTS LIABILITY 533.53 INVOICE: 2026-5
VENDOR TOTALS 1,600.59 YTD INVOICED 9,070.01 YTD PAID 533.53 124612 FRANCHISE TAX BOARD
117339 02/12/26 493846 P 02/13/26 960 21630 GARNISHMENTS LIABILITY 110.82 INVOICE: 2026-5
VENDOR TOTALS .00 YTD INVOICED 886.56 YTD PAID 110.82
121291 FRANCHISE TAX BOARD
117340 02/12/26 493844 P 02/13/26 960 21630 GARNISHMENTS LIABILITY 200.00 INVOICE: 2026-5
VENDOR TOTALS .00 YTD INVOICED 1,000.00 YTD PAID 200.00 123629 FRANCHISE TAX BOARD
117342 02/12/26 493845 P 02/13/26 960 21630 GARNISHMENTS LIABILITY 100.00 INVOICE: 2026-5
City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 02/12/2026 17:42
User: sdixon
Program ID: appdwarr
CHECK: DL021326 TO FISCAL 2026/01 07/01/2025 TO 06/30/2026
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION VENDOR TOTALS 99.43 YTD INVOICED 699.43 YTD PAID 100.00 4 H.M.E.A.
117308 02/12/26 493847 P 02/13/26 960 21600 ACCRUED WAGES PAYABLE 1,620.00 INVOICE: 2026-5
VENDOR TOTALS 4,660.00 YTD INVOICED 27,340.00 YTD PAID 1,620.00 99379 HAWTHORNE EXECUTIVE GROUP
117306 02/12/26 493848 P 02/13/26 960 21600 ACCRUED WAGES PAYABLE 560.00 INVOICE: 2026-5
VENDOR TOTALS 1,320.00 YTD INVOICED 8,080.00 YTD PAID 560.00 124425 HAWTHORNE POLICE CIVILIAN ASSOCIATION (HPCA)
117331 02/12/26 493849 P 02/13/26 960 21600 ACCRUED WAGES PAYABLE 1,520.00 INVOICE: 2026-5
VENDOR TOTALS 3,960.00 YTD INVOICED 23,200.00 YTD PAID 1,520.00 3 HAWTHORNE POLICE OFFICERS ASSN
117309 02/12/26 493850 P 02/13/26 960 21600 ACCRUED WAGES PAYABLE 6,299.50 INVOICE: 2026-5A
117311 02/12/26 493850 P 02/13/26 960 21600 ACCRUED WAGES PAYABLE 680.00 INVOICE: 2026-5B
117313 02/12/26 493850 P 02/13/26 960 21640 ADDITIONAL INS LIABILITY 3,813.29 INVOICE: 2026-5C
VENDOR TOTALS 27,289.71 YTD INVOICED 176,945.17 YTD PAID 10,792.79 115942 NAKAGAWA, JOE
117383 02/12/26 493851 P 02/13/26 960 20220 PERS LIABLILITY 372.51 INVOICE: 2026-5
VENDOR TOTALS .00 YTD INVOICED 858.72 YTD PAID 372.51
115178 PRE PAID LEGAL SERVICES, INC.
117332 02/12/26 493852 P 02/13/26 960 21640 ADDITIONAL INS LIABILITY 207.87 INVOICE: 2026-5
VENDOR TOTALS 525.63 YTD INVOICED 2,890.25 YTD PAID 207.87 113121 TOTAL ADMINISTRATION SVCS CORP
117349 02/12/26 493853 P 02/13/26 960 21640 ADDITIONAL INS LIABILITY 1,067.30 INVOICE: 2026-5A
117350 02/12/26 493853 P 02/13/26 960 21640 ADDITIONAL INS LIABILITY 4,774.98 INVOICE: 2026-5
VENDOR TOTALS 12,035.79 YTD INVOICED 76,713.46 YTD PAID 5,842.28 City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 02/12/2026 17:42
User: sdixon
Program ID: appdwarr
CHECK: DL021326 TO FISCAL 2026/01 07/01/2025 TO 06/30/2026
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 103511 U.S. BANK PARS 6746022400, L.A. LOCKBOX 511649
117351 02/12/26 493854 P 02/13/26 960 20270 PARS LIABILITY 1,505.79 INVOICE: 2026-5A
117352 02/12/26 493854 P 02/13/26 960 20270 PARS LIABILITY 376.44 INVOICE: 2026-5B
VENDOR TOTALS 12,049.44 YTD INVOICED 36,277.95 YTD PAID 1,882.23 123240 VILLEGAS, ALBA
117338 02/12/26 493855 P 02/13/26 960 21630 GARNISHMENTS LIABILITY 115.38 INVOICE: 2026-5
VENDOR TOTALS 346.14 YTD INVOICED 1,961.46 YTD PAID 115.38 REPORT TOTALS 25,419.35
COUNT AMOUNT
TOTAL PRINTED CHECKS 18 25,419.35
** END OF REPORT - Generated by Shuntell Dixon **
City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 02/17/2026 09:38
User: sdixon
Program ID: appdwarr
CHECK: UT022426 TO FISCAL 2026/01 07/01/2025 TO 06/30/2026
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 115390 A T & T MOBILITY
117427 01/23/26 493856 P 02/24/26 10001221 43054 TELEPHONE 252.24 INVOICE: JA287311965804
VENDOR TOTALS .00 YTD INVOICED 1,656.08 YTD PAID 252.24 115783 AT&T
116944 01/07/26 493857 P 02/24/26 10001222 43054 TELEPHONE 31.53 INVOICE: JA9391026320
117015 01/07/26 493857 P 02/24/26 10001222 43054 TELEPHONE 31.88 INVOICE: JA9391026284
117016 01/07/26 493857 P 02/24/26 10001222 43054 TELEPHONE 131.24 INVOICE: JA9391031545
117017 01/12/26 493857 P 02/24/26 10001222 43054 TELEPHONE 91.27 INVOICE: JA9391026281
117018 01/12/26 493857 P 02/24/26 10001222 43054 TELEPHONE 31.46 INVOICE: JA9391026282
117019 01/13/26 493857 P 02/24/26 10001222 43054 TELEPHONE 83.86 INVOICE: JA9391031541
117020 01/20/26 493857 P 02/24/26 10001222 43054 TELEPHONE 140.68 INVOICE: JA9391031543
117021 01/20/26 493857 P 02/24/26 10001222 43054 TELEPHONE 512.79 INVOICE: JA9391026341
117022 01/20/26 493857 P 02/24/26 10001222 43054 TELEPHONE 66.06 INVOICE: JA9391031546
117023 01/20/26 493857 P 02/24/26 10001222 43054 TELEPHONE 66.06 INVOICE: JA9391031544
117024 01/10/26 493857 P 02/24/26 10001222 43054 TELEPHONE 155.40 INVOICE: JA9391053668
117025 01/10/26 493857 P 02/24/26 10001222 43054 TELEPHONE 155.40 INVOICE: JA9391053669
117026 01/13/26 493857 P 02/24/26 10001222 43054 TELEPHONE 83.86 INVOICE: JA9391031541
117027 01/12/26 493857 P 02/24/26 10001222 43054 TELEPHONE 613.47 INVOICE: JA9391036076
117028 01/12/26 493857 P 02/24/26 10001222 43054 TELEPHONE 503.80 INVOICE: JA9391036095
117029 01/20/26 493857 P 02/24/26 10001222 43054 TELEPHONE 512.79 INVOICE: JA9391026341
117030 01/20/26 493857 P 02/24/26 10001222 43054 TELEPHONE 140.68 INVOICE: JA9391031543
117031 01/27/26 493857 P 02/24/26 10001222 43054 TELEPHONE 466.64 INVOICE: JA9391057056
117032 01/27/26 493857 P 02/24/26 10001222 43054 TELEPHONE 101.55 INVOICE: JA9391026316
117418 02/01/26 493857 P 02/24/26 10001222 43054 TELEPHONE 63.94 INVOICE: FB9391026345
117419 02/01/26 493857 P 02/24/26 10001222 43054 TELEPHONE 86.02 INVOICE: FB9391026293
117421 02/01/26 493857 P 02/24/26 10001222 43054 TELEPHONE 31.97 INVOICE: FB9391026278
City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 02/17/2026 09:38
User: sdixon
Program ID: appdwarr
CHECK: UT022426 TO FISCAL 2026/01 07/01/2025 TO 06/30/2026
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 117422 02/01/26 493857 P 02/24/26 52035030 43054 TELEPHONE 62.38 INVOICE: FB9391026287
117423 01/01/26 493857 P 02/24/26 52035030 43054 TELEPHONE 62.21 INVOICE: JA9391026287
117426 02/01/26 493857 P 02/24/26 10001222 43054 TELEPHONE 254.92 INVOICE: FB9391026291
VENDOR TOTALS .00 YTD INVOICED 30,657.39 YTD PAID 4,481.86 103177 CALIFORNIA WATER SERVICE
117033 01/16/26 493858 P 02/24/26 22041060 45444 UTILITIES 284.73 INVOICE: JA9379311111
117034 01/16/26 493858 P 02/24/26 10061100 45444 UTILITIES 1,202.97 INVOICE: JA9056440300
117035 01/16/26 493858 P 02/24/26 46715732 45444 UTILITIES 216.41 INVOICE: JA4046764921
117036 12/21/25 493858 P 02/24/26 46615731 45444 UTILITIES 76.00 INVOICE: DC9309482003
117037 12/16/25 493858 P 02/24/26 46615731 45444 UTILITIES 540.82 INVOICE: DC7858758946
117038 01/16/26 493858 P 02/24/26 46615731 45444 UTILITIES 537.68 INVOICE: JA7858758946
117039 12/31/25 493858 P 02/24/26 10061100 45444 UTILITIES 549.60 INVOICE: DC3406289008
117428 01/29/26 493858 P 02/24/26 22041060 45444 UTILITIES 290.06 INVOICE: JA8639925174
117429 01/30/26 493858 P 02/24/26 10061100 45444 UTILITIES 505.25 INVOICE: JA3406289008
117430 01/27/26 493858 P 02/24/26 22041060 45444 UTILITIES 58.82 INVOICE: JA3124149340
117432 01/30/26 493858 P 02/24/26 46615731 45444 UTILITIES 76.00 INVOICE: JA9309482003
117433 01/15/26 493858 P 02/24/26 22041060 45444 UTILITIES 625.10 INVOICE: JA2207311111
117434 01/15/26 493858 P 02/24/26 10061100 45444 UTILITIES 107.53 INVOICE: JA6395574084
117435 01/15/26 493858 P 02/24/26 10061100 45444 UTILITIES 138.17 INVOICE: JA8717030744
117436 01/15/26 493858 P 02/24/26 10061100 45444 UTILITIES 48.94 INVOICE: JA1072582226
117437 01/15/26 493858 P 02/24/26 22041060 45444 UTILITIES 3,880.76 INVOICE: JA3089311111
117438 01/15/26 493858 P 02/24/26 10061100 45444 UTILITIES 54.09 INVOICE: JA4031446452
117439 01/21/26 493858 P 02/24/26 10061100 45444 UTILITIES 405.85 INVOICE: JA5297758587
117440 01/20/26 493858 P 02/24/26 46847150 45444 UTILITIES 102.92 INVOICE: JA8816940090
117441 01/20/26 493858 P 02/24/26 22041060 45444 UTILITIES 49.88 INVOICE: JA3357207262
117483 12/30/25 493858 P 02/24/26 10001221 45444 UTILITIES 359.00 City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 02/17/2026 09:38
User: sdixon
Program ID: appdwarr
CHECK: UT022426 TO FISCAL 2026/01 07/01/2025 TO 06/30/2026
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION INVOICE: DC5612411111
117483 12/30/25 493858 P 02/24/26 10041050 45444 UTILITIES 850.09 INVOICE: DC5612411111
117483 12/30/25 493858 P 02/24/26 10061100 45444 UTILITIES 8,194.32 INVOICE: DC5612411111
117483 12/30/25 493858 P 02/24/26 22041060 45444 UTILITIES 250.54 INVOICE: DC5612411111
117483 12/30/25 493858 P 02/24/26 52035030 45444 UTILITIES 196.43 INVOICE: DC5612411111
117483 12/30/25 493858 P 02/24/26 60031030 45444 UTILITIES 83.52 INVOICE: DC5612411111
117483 12/30/25 493858 P 02/24/26 46447150 45444 UTILITIES 560.90 INVOICE: DC5612411111
117484 01/29/26 493858 P 02/24/26 10001221 45444 UTILITIES 364.37 INVOICE: JA5612411111
117484 01/29/26 493858 P 02/24/26 10041050 45444 UTILITIES 837.14 INVOICE: JA5612411111
117484 01/29/26 493858 P 02/24/26 10061100 45444 UTILITIES 8,505.03 INVOICE: JA5612411111
117484 01/29/26 493858 P 02/24/26 22041060 45444 UTILITIES 247.81 INVOICE: JA5612411111
117484 01/29/26 493858 P 02/24/26 52035030 45444 UTILITIES 220.27 INVOICE: JA5612411111
117484 01/29/26 493858 P 02/24/26 60031030 45444 UTILITIES 82.59 INVOICE: JA5612411111
117484 01/29/26 493858 P 02/24/26 46447150 45444 UTILITIES 493.01 INVOICE: JA5612411111
VENDOR TOTALS 74.32 YTD INVOICED 247,665.17 YTD PAID 30,996.60 18100 GOLDEN STATE WATER CO.
117041 01/13/26 493859 P 02/24/26 10061100 45444 UTILITIES 442.38 INVOICE: JA87617300006
117042 01/12/26 493859 P 02/24/26 10061100 45444 UTILITIES 376.37 INVOICE: JA79588300008
117043 01/12/26 493859 P 02/24/26 10061100 45444 UTILITIES 1,343.86 INVOICE: JA77537000000
117044 01/12/26 493859 P 02/24/26 22041060 45444 UTILITIES 519.00 INVOICE: JA80946300003
117045 01/12/26 493859 P 02/24/26 22041060 45444 UTILITIES 102.23 INVOICE: JA70019046005
117046 01/12/26 493859 P 02/24/26 10061100 45444 UTILITIES 164.28 INVOICE: JA53247400004
117047 01/12/26 493859 P 02/24/26 10061100 45444 UTILITIES 451.08 INVOICE: JA82920958939
117048 01/12/26 493859 P 02/24/26 32420030 41144 PHLA PROJECT 345.99 INVOICE: JA77948662174
117049 01/12/26 493859 P 02/24/26 10061100 45444 UTILITIES 129.70 INVOICE: JA78588300000
117050 01/12/26 493859 P 02/24/26 22041060 45444 UTILITIES 900.22 INVOICE: JA70946300004
City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 02/17/2026 09:38
User: sdixon
Program ID: appdwarr
CHECK: UT022426 TO FISCAL 2026/01 07/01/2025 TO 06/30/2026
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 117051 01/09/26 493859 P 02/24/26 10061100 45444 UTILITIES 2,253.47 INVOICE: JA25440300009
117052 01/09/26 493859 P 02/24/26 10061100 45444 UTILITIES 620.89 INVOICE: JA34609100002
117053 01/09/26 493859 P 02/24/26 10061100 45444 UTILITIES 485.85 INVOICE: JA22215100003
117054 01/09/26 493859 P 02/24/26 10061010 45444 UTILITIES 584.49 INVOICE: JA14219000008
117055 01/09/26 493859 P 02/24/26 10061100 45444 UTILITIES 64.06 INVOICE: JA89950300007
117056 01/09/26 493859 P 02/24/26 10061100 45444 UTILITIES 64.06 INVOICE: JA88950300009
117057 01/09/26 493859 P 02/24/26 10061100 45444 UTILITIES 537.82 INVOICE: JA62719000002
117058 01/09/26 493859 P 02/24/26 10061100 45444 UTILITIES 64.06 INVOICE: JA29950300003
117059 01/09/26 493859 P 02/24/26 10061100 45444 UTILITIES 516.65 INVOICE: JA79617300003
117060 01/09/26 493859 P 02/24/26 10061100 45444 UTILITIES 159.08 INVOICE: JA58378300006
117061 01/09/26 493859 P 02/24/26 10061100 45444 UTILITIES 665.62 INVOICE: JA88617300004
117062 01/09/26 493859 P 02/24/26 10061100 45444 UTILITIES 400.70 INVOICE: JA83957100007
117443 02/04/26 493859 P 02/24/26 10061100 45444 UTILITIES 470.15 INVOICE: FB31438000007
117444 02/05/26 493859 P 02/24/26 10061100 45444 UTILITIES 57.55 INVOICE: FB29950300003
117445 02/05/26 493859 P 02/24/26 10061100 45444 UTILITIES 465.35 INVOICE: FB79617300003
117446 02/05/26 493859 P 02/24/26 10061100 45444 UTILITIES 147.18 INVOICE: FB58378300006
117447 02/05/26 493859 P 02/24/26 10061100 45444 UTILITIES 574.81 INVOICE: FB88617300004
117448 02/05/26 493859 P 02/24/26 10061100 45444 UTILITIES 520.91 INVOICE: FB83957100007
117449 02/05/26 493859 P 02/24/26 10061100 45444 UTILITIES 468.84 INVOICE: FB34609100002
117450 02/05/26 493859 P 02/24/26 10061100 45444 UTILITIES 2,300.47 INVOICE: FB25440300009
117451 02/05/26 493859 P 02/24/26 10061100 45444 UTILITIES 480.72 INVOICE: FB22215100003
117452 02/05/26 493859 P 02/24/26 10061010 45444 UTILITIES 520.06 INVOICE: FB14219000008
117453 02/05/26 493859 P 02/24/26 10061100 45444 UTILITIES 57.55 INVOICE: FB89950300007
117454 02/05/26 493859 P 02/24/26 10061100 45444 UTILITIES 57.55 INVOICE: FB88950300009
117455 02/05/26 493859 P 02/24/26 10061100 45444 UTILITIES 498.08 INVOICE: FB62719000002
117457 02/05/26 493859 P 02/24/26 22041060 45444 UTILITIES 219.94 City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 02/17/2026 09:38
User: sdixon
Program ID: appdwarr
CHECK: UT022426 TO FISCAL 2026/01 07/01/2025 TO 06/30/2026
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION INVOICE: FB53542320113
VENDOR TOTALS .00 YTD INVOICED 129,115.26 YTD PAID 18,031.02 17953 SO CALIF EDISON CO
116718 01/16/26 493860 P 02/24/26 10041050 45444 UTILITIES 108.93 INVOICE: JA700415178636
116721 01/16/26 493860 P 02/24/26 10041050 45444 UTILITIES 240.28 INVOICE: JA700415350812
116725 01/16/26 493860 P 02/24/26 32420030 41144 PHLA PROJECT 1,257.55 INVOICE: JA700781445279
116991 01/26/26 493860 P 02/24/26 10061010 45444 UTILITIES 80.28 INVOICE: JA700415041523
116992 01/26/26 493860 P 02/24/26 22041060 42104 SIGNAL MAINTENANCE 273.25 INVOICE: JA700413899448
116993 01/26/26 493860 P 02/24/26 10061010 45444 UTILITIES 59.03 INVOICE: JA700414028780
116994 01/26/26 493860 P 02/24/26 10041050 45444 UTILITIES 81.07 INVOICE: JA700412535081
116995 01/26/26 493860 P 02/24/26 22041060 42104 SIGNAL MAINTENANCE 77.76 INVOICE: JA700023530426
116996 01/26/26 493860 P 02/24/26 10061010 45444 UTILITIES 400.98 INVOICE: JA700123368078
116997 01/26/26 493860 P 02/24/26 20025000 45444 UTILITIES 62.51 INVOICE: JA700370247933
117110 02/02/26 493860 P 02/24/26 20025000 45444 UTILITIES 8.17 INVOICE: FB700201790760
117111 02/02/26 493860 P 02/24/26 10061010 45444 UTILITIES 276.37 INVOICE: FB700413829831
117112 02/02/26 493860 P 02/24/26 10061010 45444 UTILITIES 149.10 INVOICE: FB700196589136
117113 01/30/26 493860 P 02/24/26 22041060 42104 SIGNAL MAINTENANCE 33.00 INVOICE: JA700413948857
117114 01/30/26 493860 P 02/24/26 20025000 45444 UTILITIES 182.70 INVOICE: JA700616837087
117115 01/30/26 493860 P 02/24/26 22041060 42104 SIGNAL MAINTENANCE 111.55 INVOICE: JA700413964116
117116 01/30/26 493860 P 02/24/26 22041060 42104 SIGNAL MAINTENANCE 73.16 INVOICE: JA700415310392
117117 01/30/26 493860 P 02/24/26 22041060 42104 SIGNAL MAINTENANCE 129.35 INVOICE: JA700412466979
117118 02/02/26 493860 P 02/24/26 10061010 45444 UTILITIES 175.97 INVOICE: FB700413750211
117119 01/30/26 493860 P 02/24/26 10061100 45444 UTILITIES 34.33 INVOICE: JA700413787088
117120 01/30/26 493860 P 02/24/26 10061100 45444 UTILITIES 105.48 INVOICE: JA700413762234
117121 01/30/26 493860 P 02/24/26 22041060 42104 SIGNAL MAINTENANCE 74.28 INVOICE: JA700415322318
117123 01/30/26 493860 P 02/24/26 22041060 42104 SIGNAL MAINTENANCE 86.41 INVOICE: JA700385074482
City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 02/17/2026 09:38
User: sdixon
Program ID: appdwarr
CHECK: UT022426 TO FISCAL 2026/01 07/01/2025 TO 06/30/2026
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 117124 02/02/26 493860 P 02/24/26 20025000 45444 UTILITIES 146.44 INVOICE: FB700534679101
117125 02/02/26 493860 P 02/24/26 10061100 45444 UTILITIES 5.01 INVOICE: FB700413816693
117126 02/02/26 493860 P 02/24/26 22041060 42104 SIGNAL MAINTENANCE 134.12 INVOICE: FB700413657352
117128 02/02/26 493860 P 02/24/26 22041060 42104 SIGNAL MAINTENANCE 105.05 INVOICE: FB700413671395
117129 02/02/26 493860 P 02/24/26 10061010 45444 UTILITIES 313.34 INVOICE: FB700412405547
117130 02/02/26 493860 P 02/24/26 22041060 42104 SIGNAL MAINTENANCE 69.45 INVOICE: FB700413595112
117131 02/02/26 493860 P 02/24/26 22041060 42104 SIGNAL MAINTENANCE 125.91 INVOICE: FB700196576305
117132 02/02/26 493860 P 02/24/26 22041060 42104 SIGNAL MAINTENANCE 89.67 INVOICE: FB700413639568
117133 02/02/26 493860 P 02/24/26 22041060 42104 SIGNAL MAINTENANCE 103.87 INVOICE: FB700415157418
117134 02/02/26 493860 P 02/24/26 22041060 42104 SIGNAL MAINTENANCE 79.22 INVOICE: FB700415119022
117135 02/02/26 493860 P 02/24/26 22041060 42104 SIGNAL MAINTENANCE 203.12 INVOICE: FB700415109322
117136 02/02/26 493860 P 02/24/26 22041060 42104 SIGNAL MAINTENANCE 68.17 INVOICE: FB700541838004
117137 02/02/26 493860 P 02/24/26 20025000 45444 UTILITIES 8,201.80 INVOICE: FB700364926774
117138 02/02/26 493860 P 02/24/26 10061050 45444 UTILITIES 2,249.21 INVOICE: FB700250316527
117139 02/02/26 493860 P 02/24/26 22041060 42104 SIGNAL MAINTENANCE 149.57 INVOICE: FB700415168330
117140 02/02/26 493860 P 02/24/26 22041060 42104 SIGNAL MAINTENANCE 71.78 INVOICE: FB700413775974
117141 02/02/26 493860 P 02/24/26 22041060 42104 SIGNAL MAINTENANCE 129.04 INVOICE: FB700413801034
117142 02/02/26 493860 P 02/24/26 22041060 42104 SIGNAL MAINTENANCE 108.28 INVOICE: FB700415394157
117143 02/02/26 493860 P 02/24/26 22041060 45444 UTILITIES 88.53 INVOICE: FB700455547107
117170 02/03/26 493860 P 02/24/26 22041060 42104 SIGNAL MAINTENANCE 36.66 INVOICE: FB700415407897
117171 02/03/26 493860 P 02/24/26 22041060 45444 UTILITIES 125.13 INVOICE: FB700415444374
117172 02/03/26 493860 P 02/24/26 22041060 45444 UTILITIES 147.88 INVOICE: FB700413545497
117174 02/03/26 493860 P 02/24/26 22041060 42104 SIGNAL MAINTENANCE 123.70 INVOICE: FB700029139046
117175 02/03/26 493860 P 02/24/26 20025000 45444 UTILITIES 50.58 INVOICE: FB700591200088
117176 02/03/26 493860 P 02/24/26 20025000 45444 UTILITIES 453.29 INVOICE: FB700017571996
117177 02/03/26 493860 P 02/24/26 20025000 45444 UTILITIES 1,202.58 City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 02/17/2026 09:38
User: sdixon
Program ID: appdwarr
CHECK: UT022426 TO FISCAL 2026/01 07/01/2025 TO 06/30/2026
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION INVOICE: FB700610655258
117179 02/03/26 493860 P 02/24/26 22041060 42104 SIGNAL MAINTENANCE 384.93 INVOICE: FB700415101844
117180 02/04/26 493860 P 02/24/26 10061100 45444 UTILITIES 695.65 INVOICE: FB700415364047
117182 02/03/26 493860 P 02/24/26 22041060 42104 SIGNAL MAINTENANCE 105.16 INVOICE: FB700878401833
117183 02/04/26 493860 P 02/24/26 20025000 45444 UTILITIES 223.35 INVOICE: FB700413856406
117185 02/04/26 493860 P 02/24/26 10061100 45444 UTILITIES 444.83 INVOICE: FB700413581065
117187 02/04/26 493860 P 02/24/26 20025000 45444 UTILITIES 389.91 INVOICE: FB700415497120
117189 02/04/26 493860 P 02/24/26 20025000 45444 UTILITIES 63.65 INVOICE: FB700272148294
117190 02/04/26 493860 P 02/24/26 20025000 45444 UTILITIES 63,094.22 INVOICE: FB700364879789
117191 02/04/26 493860 P 02/24/26 20025000 45444 UTILITIES 1,234.48 INVOICE: FB700415468525
117192 02/04/26 493860 P 02/24/26 20025000 45444 UTILITIES 442.73 INVOICE: FB700599510261
117193 02/03/26 493860 P 02/24/26 20025000 45444 UTILITIES 273.16 INVOICE: FB700382576734
117195 02/03/26 493860 P 02/24/26 20025000 45444 UTILITIES 243.19 INVOICE: FB700028707802
117471 02/03/26 493860 P 02/24/26 20025000 45444 UTILITIES 33.66 INVOICE: FB700201940809
117482 02/03/26 493860 P 02/24/26 20025000 45444 UTILITIES 240.78 INVOICE: FB700203184631
VENDOR TOTALS 171,722.71 YTD INVOICED 1,272,854.69 YTD PAID 86,532.61 18000 SO CALIF GAS CO
117063 01/06/26 493861 P 02/24/26 10061010 45444 UTILITIES 1,806.30 INVOICE: 12990557006
117458 02/02/26 493861 P 02/24/26 10061010 45444 UTILITIES 79.05 INVOICE: 09730449007
117459 02/03/26 493861 P 02/24/26 10061010 45444 UTILITIES 130.76 INVOICE: 08140463004
117460 02/03/26 493861 P 02/24/26 10061010 45444 UTILITIES 14.62 INVOICE: 07510463859
117461 02/03/26 493861 P 02/24/26 10061100 45444 UTILITIES 94.07 INVOICE: 16330470002
117462 02/04/26 493861 P 02/24/26 46447150 45444 UTILITIES 14.06 INVOICE: 08220415015
117465 02/04/26 493861 P 02/24/26 46515730 42024 BUILDING MAINTENANCE 122.89 INVOICE: 14720396127
117466 02/04/26 493861 P 02/24/26 46615731 42024 BUILDING MAINTENANCE 603.75 INVOICE: 09680396372
117467 02/04/26 493861 P 02/24/26 10061100 45444 UTILITIES 11,405.40 INVOICE: 11580407002
City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 02/17/2026 09:38
User: sdixon
Program ID: appdwarr
CHECK: UT022426 TO FISCAL 2026/01 07/01/2025 TO 06/30/2026
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 117468 02/04/26 493861 P 02/24/26 46615731 45444 UTILITIES 56.49 INVOICE: 11780396591
117469 02/04/26 493861 P 02/24/26 46615731 45444 UTILITIES 6.68 INVOICE: 12200396963
117470 02/04/26 493861 P 02/24/26 10001221 43054 TELEPHONE 3,686.25 INVOICE: 18936983107
117481 02/03/26 493861 P 02/24/26 10061010 45444 UTILITIES 1,509.39 INVOICE: 12990557006
VENDOR TOTALS 15.29 YTD INVOICED 106,294.58 YTD PAID 19,529.71 112237 T-MOBILE
117473 01/21/26 493862 P 02/24/26 10001221 43054 TELEPHONE 115.18 INVOICE: JA982816099
117473 01/21/26 493862 P 02/24/26 52035030 43054 TELEPHONE 133.18 INVOICE: JA982816099
117473 01/21/26 493862 P 02/24/26 10001230 43054 TELEPHONE 133.18 INVOICE: JA982816099
117473 01/21/26 493862 P 02/24/26 10043010 43054 TELEPHONE 432.70 INVOICE: JA982816099
117473 01/21/26 493862 P 02/24/26 10015010 43054 TELEPHONE 391.18 INVOICE: JA982816099
117473 01/21/26 493862 P 02/24/26 10013010 43054 TELEPHONE 599.31 INVOICE: JA982816099
117473 01/21/26 493862 P 02/24/26 10042040 43054 TELEPHONE 266.36 INVOICE: JA982816099
117473 01/21/26 493862 P 02/24/26 60031030 43054 TELEPHONE 199.77 INVOICE: JA982816099
117473 01/21/26 493862 P 02/24/26 10016010 43054 TELEPHONE 133.18 INVOICE: JA982816099
117473 01/21/26 493862 P 02/24/26 10041120 43054 TELEPHONE 266.36 INVOICE: JA982816099
117473 01/21/26 493862 P 02/24/26 10061050 43054 TELEPHONE 66.59 INVOICE: JA982816099
117473 01/21/26 493862 P 02/24/26 10017010 43054 TELEPHONE 66.59 INVOICE: JA982816099
117473 01/21/26 493862 P 02/24/26 10061010 43054 TELEPHONE 466.13 INVOICE: JA982816099
117473 01/21/26 493862 P 02/24/26 10042010 43054 TELEPHONE 66.59 INVOICE: JA982816099
117473 01/21/26 493862 P 02/24/26 10041010 43054 TELEPHONE 2,107.98 INVOICE: JA982816099
117475 01/21/26 493862 P 02/24/26 10001221 43054 TELEPHONE 115.18 INVOICE: DC982816099
117475 01/21/26 493862 P 02/24/26 52035030 43054 TELEPHONE 133.18 INVOICE: DC982816099
117475 01/21/26 493862 P 02/24/26 10001230 43054 TELEPHONE 133.18 INVOICE: DC982816099
117475 01/21/26 493862 P 02/24/26 10043010 43054 TELEPHONE 432.70 INVOICE: DC982816099
117475 01/21/26 493862 P 02/24/26 10015010 43054 TELEPHONE 391.18 City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 02/17/2026 09:38
User: sdixon
Program ID: appdwarr
CHECK: UT022426 TO FISCAL 2026/01 07/01/2025 TO 06/30/2026
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION INVOICE: DC982816099
117475 01/21/26 493862 P 02/24/26 10013010 43054 TELEPHONE 599.31 INVOICE: DC982816099
117475 01/21/26 493862 P 02/24/26 10042040 43054 TELEPHONE 266.36 INVOICE: DC982816099
117475 01/21/26 493862 P 02/24/26 60031030 43054 TELEPHONE 199.77 INVOICE: DC982816099
117475 01/21/26 493862 P 02/24/26 10016010 43054 TELEPHONE 133.18 INVOICE: DC982816099
117475 01/21/26 493862 P 02/24/26 10041120 43054 TELEPHONE 266.36 INVOICE: DC982816099
117475 01/21/26 493862 P 02/24/26 10061050 43054 TELEPHONE 66.59 INVOICE: DC982816099
117475 01/21/26 493862 P 02/24/26 10017010 43054 TELEPHONE 66.59 INVOICE: DC982816099
117475 01/21/26 493862 P 02/24/26 10061010 43054 TELEPHONE 466.13 INVOICE: DC982816099
117475 01/21/26 493862 P 02/24/26 10042010 43054 TELEPHONE 66.59 INVOICE: DC982816099
117475 01/21/26 493862 P 02/24/26 10041010 43054 TELEPHONE 2,107.98 INVOICE: DC982816099
117476 12/21/25 493862 P 02/24/26 10001221 43054 TELEPHONE 7,592.59 INVOICE: DC960336852
117477 01/21/26 493862 P 02/24/26 10001221 43054 TELEPHONE 7,084.98 INVOICE: JA960336852
VENDOR TOTALS .00 YTD INVOICED 103,140.38 YTD PAID 25,566.13 113605 VERIZON WIRELESS
117064 12/23/25 493863 P 02/24/26 10001221 43054 TELEPHONE 20.02 INVOICE: DC470985090-4
117064 12/23/25 493863 P 02/24/26 10043010 43054 TELEPHONE 129.16 INVOICE: DC470985090-4
117064 12/23/25 493863 P 02/24/26 10042040 43054 TELEPHONE 200.05 INVOICE: DC470985090-4
117064 12/23/25 493863 P 02/24/26 10041040 43054 TELEPHONE 156.04 INVOICE: DC470985090-4
117478 12/23/25 493863 P 02/24/26 10001221 43054 TELEPHONE 7,156.94 INVOICE: DC470985090-1
117479 01/23/26 493863 P 02/24/26 10001221 43054 TELEPHONE 20.02 INVOICE: JA470985090-4
117479 01/23/26 493863 P 02/24/26 10043010 43054 TELEPHONE 129.16 INVOICE: JA470985090-4
117479 01/23/26 493863 P 02/24/26 10042040 43054 TELEPHONE 200.05 INVOICE: JA470985090-4
117479 01/23/26 493863 P 02/24/26 10041040 43054 TELEPHONE 156.04 INVOICE: JA470985090-4
VENDOR TOTALS .00 YTD INVOICED 43,096.90 YTD PAID 8,167.48 REPORT TOTALS 193,557.65
City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 02/17/2026 09:38
User: sdixon
Program ID: appdwarr
CHECK: UT022426 TO FISCAL 2026/01 07/01/2025 TO 06/30/2026
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION
COUNT AMOUNT
TOTAL PRINTED CHECKS 8 193,557.65
** END OF REPORT - Generated by Shuntell Dixon **
City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 02/17/2026 09:56
User: sdixon
Program ID: appdwarr
CHECK: C022426 TO FISCAL 2026/01 07/01/2025 TO 06/30/2026
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 122920 4283929 DELAWARE LLC.
117160 01/31/26 493880 T 02/24/26 10001230 40514 CONTRACT SERVICES 145.40 INVOICE: WC11536-I-0059
VENDOR TOTALS .00 YTD INVOICED 1,903.91 YTD PAID 145.40 123058 ACCESS INFORMATION INTERMEDIATE HOLDINGS I, LLC. 117070 01/31/26 493881 T 02/24/26 10013010 41514 OPERATING SUPPLIES 113.77 INVOICE: 12029732
117070 01/31/26 493881 T 02/24/26 10015010 41514 OPERATING SUPPLIES 113.77 INVOICE: 12029732
117070 01/31/26 493881 T 02/24/26 10016010 41514 OPERATING SUPPLIES 113.77 INVOICE: 12029732
117070 01/31/26 493881 T 02/24/26 10016020 41514 OPERATING SUPPLIES 113.77 INVOICE: 12029732
117070 01/31/26 493881 T 02/24/26 10017010 41514 OPERATING SUPPLIES 113.77 INVOICE: 12029732
117070 01/31/26 493881 T 02/24/26 10043010 41514 OPERATING SUPPLIES 113.77 INVOICE: 12029732
117194 01/31/26 493881 T 02/24/26 10002215 41514 OPERATING SUPPLIES 1,168.80 INVOICE: 12029734
VENDOR TOTALS .00 YTD INVOICED 17,158.09 YTD PAID 1,851.42 124327 ACTION TARGET INC.
117234 12/31/25 2436 493882 T 02/24/26 10001225 40514 CONTRACT SERVICES 62,000.00 INVOICE: Application No. 2
VENDOR TOTALS .00 YTD INVOICED 139,500.00 YTD PAID 62,000.00 114284 ADMINSURE INC.
117486 02/15/26 2917 493883 T 02/24/26 25019010 45684 WORKERS COMPENSATION ADMI 15,374.00 INVOICE: 18607
VENDOR TOTALS 8,710.00 YTD INVOICED 132,555.81 YTD PAID 15,374.00 117802 ADVANCED BATTERY SYSTEMS, INC.
116975 01/21/26 493884 T 02/24/26 60031030 42064 PARTS 1,725.87 INVOICE: 0203342-IN
117260 02/02/26 493884 T 02/24/26 60031030 42064 PARTS 645.93 INVOICE: 0203459-IN
VENDOR TOTALS .00 YTD INVOICED 11,764.38 YTD PAID 2,371.80 116315 AFLAC
117238 02/11/26 493885 T 02/24/26 990 20900 INSURANCE BENEFITS 6,888.08 INVOICE: 934969
VENDOR TOTALS 5,565.08 YTD INVOICED 48,154.40 YTD PAID 6,888.08 119085 AGUILAR, ROLANDO
City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 02/17/2026 09:56
User: sdixon
Program ID: appdwarr
CHECK: C022426 TO FISCAL 2026/01 07/01/2025 TO 06/30/2026
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 116981 01/12/26 493886 T 02/24/26 60031030 42064 PARTS 2,920.58 INVOICE: 004337
116982 01/14/26 493886 T 02/24/26 60031030 42064 PARTS 3,719.12 INVOICE: 004339
117231 02/02/26 493886 T 02/24/26 60031030 42064 PARTS 3,554.17 INVOICE: 004348
VENDOR TOTALS .00 YTD INVOICED 19,597.54 YTD PAID 10,193.87 112416 ALLIANCE DISTRIBUTION HOLDINGS INC.
117122 01/29/26 3149 493887 T 02/24/26 10001221 47404 MACHINERY & EQUIPMENT 20,468.80 INVOICE: 6002177163
VENDOR TOTALS .00 YTD INVOICED 20,702.80 YTD PAID 20,468.80 116419 ALTA LANGUAGE SERVICES, INC.
117226 01/31/26 493888 T 02/24/26 10017010 40514 CONTRACT SERVICES 72.00 INVOICE: IS828953
VENDOR TOTALS .00 YTD INVOICED 213.00 YTD PAID 72.00
111720 AMAZING BALLOONS BY GEE, LLC.
117420 02/09/26 493889 T 02/24/26 10061020 41514 OPERATING SUPPLIES 442.00 INVOICE: 2021-3705
VENDOR TOTALS .00 YTD INVOICED 5,126.34 YTD PAID 442.00 124601 AMERICAN WHOLESALE LIGHTING INC.
117382 12/09/25 3179 493890 T 02/24/26 50410060 40514 CONTRACT SERVICES 21,294.72 INVOICE: Retention #2 & Final
VENDOR TOTALS .00 YTD INVOICED 425,894.35 YTD PAID 21,294.72 123570 ANIMAL PEST MANAGMENT SERVICES, INC.
117424 01/31/26 493891 T 02/24/26 10061100 47304 IMPROV OTHER THAN BUILDIN 375.00 INVOICE: 716617
VENDOR TOTALS .00 YTD INVOICED 3,750.00 YTD PAID 375.00 109713 ARIAS JR., VINCENT
117200 01/13/26 493892 T 02/24/26 23210040 45144 GASOLINE & OIL 355.48 INVOICE: REIMB. 11/21/2025
VENDOR TOTALS .00 YTD INVOICED 355.48 YTD PAID 355.48
119713 ARTHUR J. GALLAGHER & CO.
117201 01/13/26 2903 493893 T 02/24/26 25190010 46244 AUTO PHYS DAM/CE/EARTH MO 3,021.74 INVOICE: 5951085
VENDOR TOTALS 2,373.14 YTD INVOICED 82,722.88 YTD PAID 3,021.74 City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 02/17/2026 09:56
User: sdixon
Program ID: appdwarr
CHECK: C022426 TO FISCAL 2026/01 07/01/2025 TO 06/30/2026
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 111399 ASSI SECURITY
117196 12/16/25 493894 T 02/24/26 10001221 41514 OPERATING SUPPLIES 2,981.40 INVOICE: P04381
VENDOR TOTALS 1,525.00 YTD INVOICED 16,081.84 YTD PAID 2,981.40 124650 AUSBON-GUILLORY, JEFFREY
117101 02/05/26 493895 T 02/24/26 10043020 45184 TRAINING 244.12 INVOICE: J-0003
VENDOR TOTALS .00 YTD INVOICED 244.12 YTD PAID 244.12
114628 BALBOA, HERMINIA I
117098 02/03/26 493896 T 02/24/26 10061010 40504 COMMISSIONER STIPENDS 50.00 INVOICE: 2-3-26
117107 01/06/26 493896 T 02/24/26 10061010 40504 COMMISSIONER STIPENDS 50.00 INVOICE: 1-6-26
VENDOR TOTALS .00 YTD INVOICED 300.00 YTD PAID 100.00
115285 BENTLEY SYSTEM INC.
117079 01/20/26 3177 493897 T 02/24/26 10041010 45104 DUES & SUBSCRIPTIONS 8,458.00 INVOICE: 48686863
VENDOR TOTALS .00 YTD INVOICED 8,458.00 YTD PAID 8,458.00 119831 BRISTOW, ERICA
116777 01/07/26 493898 T 02/24/26 10001224 45124 EDUCATIONAL REIMBURSEMENT 522.00 INVOICE: EDUC. BCJ355
117397 01/23/26 493898 T 02/24/26 10001224 45124 EDUCATIONAL REIMBURSEMENT 459.00 INVOICE: EDUC. BCJ 400
VENDOR TOTALS .00 YTD INVOICED 3,026.75 YTD PAID 981.00 110437 CATHOLIC CHARITIES OF
116922 11/26/25 3015 493899 T 02/24/26 72750711 44724 ST MARGARET EMERG ASST 4,568.88 INVOICE: 17
VENDOR TOTALS .00 YTD INVOICED 9,380.37 YTD PAID 4,568.88 123563 CARD INTEGRATORS CORPORATION
117164 01/08/26 493900 T 02/24/26 10002229 40514 CONTRACT SERVICES 1,705.00 INVOICE: Q-21597-2
VENDOR TOTALS .00 YTD INVOICED 4,258.81 YTD PAID 1,705.00 123668 CITIGUARD, INC.
117274 02/02/26 3019 493901 T 02/24/26 78480020 44824 SUPPORTIVE SERVICES 19,314.24 INVOICE: 78079
City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 02/17/2026 09:56
User: sdixon
Program ID: appdwarr
CHECK: C022426 TO FISCAL 2026/01 07/01/2025 TO 06/30/2026
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION VENDOR TOTALS .00 YTD INVOICED 188,882.40 YTD PAID 19,314.24 123567 CIVICA LAW GROUP, APC
117203 02/03/26 3043 493902 T 02/24/26 10015010 40744 RECEIVERSHIPS 182.40 INVOICE: 18873
117206 02/03/26 3043 493902 T 02/24/26 10015010 40744 RECEIVERSHIPS 212.80 INVOICE: 18874
117207 02/03/26 3043 493902 T 02/24/26 10015010 40744 RECEIVERSHIPS 444.80 INVOICE: 18875
VENDOR TOTALS .00 YTD INVOICED 105,793.70 YTD PAID 840.00 108324 BRAGG INVESTMENT COMPANY, INC.
117232 01/29/26 493903 T 02/24/26 60031030 42064 PARTS 268.00 INVOICE: 1318742
VENDOR TOTALS .00 YTD INVOICED 743.16 YTD PAID 268.00
124720 COFFEE KOMBUCHA TEA ON TAP
117267 01/24/25 493864 P 02/24/26 10000101 51114 BUSINESS LICENSE TAXES 145.00 INVOICE: REQ#2000-114997
VENDOR TOTALS .00 YTD INVOICED 145.00 YTD PAID 145.00
115849 COLANTUONO,HIGHSMITH & WHATLEY, PC
117212 02/05/26 493904 T 02/24/26 10015020 40514 CONTRACT SERVICES 97.50 INVOICE: 69112
VENDOR TOTALS .00 YTD INVOICED 1,430.00 YTD PAID 97.50
106811 COLONIAL LIFE & ACCIDENT INS.
117239 02/01/26 493905 T 02/24/26 990 20900 INSURANCE BENEFITS 2,007.00 INVOICE: 75010180201721
VENDOR TOTALS 1,965.83 YTD INVOICED 15,369.93 YTD PAID 2,007.00 91961 GPC INC.
116930 12/18/25 3000 493906 T 02/24/26 60031030 42064 PARTS 20.55 INVOICE: 099845
116931 12/02/25 3000 493906 T 02/24/26 60031030 42064 PARTS 208.61 INVOICE: 097715
116932 12/02/25 3000 493906 T 02/24/26 60031030 42064 PARTS 239.40 INVOICE: 097736
116933 12/03/25 3000 493906 T 02/24/26 60031030 42064 PARTS 251.94 INVOICE: 097850
116934 12/08/25 3000 493906 T 02/24/26 60031030 42064 PARTS 105.35 INVOICE: 098497
116935 12/08/25 3000 493906 T 02/24/26 60031030 42064 PARTS 160.74 INVOICE: 098557
116936 12/15/25 3000 493906 T 02/24/26 60031030 42064 PARTS 99.32 City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 02/17/2026 09:56
User: sdixon
Program ID: appdwarr
CHECK: C022426 TO FISCAL 2026/01 07/01/2025 TO 06/30/2026
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION INVOICE: 099370
116937 10/13/25 3000 493906 T 02/24/26 60031030 42064 PARTS 225.15 INVOICE: 091395
116974 12/17/25 3000 493906 T 02/24/26 60031030 42064 PARTS 64.05 INVOICE: 099740
116974 12/17/25 493906 T 02/24/26 60031030 42064 PARTS -36.00 INVOICE: 099740
116977 12/15/25 3000 493906 T 02/24/26 60031030 42064 PARTS 32.92 INVOICE: 099367
117162 01/21/26 3000 493906 T 02/24/26 60031030 42064 PARTS 142.01 INVOICE: 103715
117165 01/16/26 3000 493906 T 02/24/26 60031030 42064 PARTS 49.59 INVOICE: 103120
117208 01/20/26 3000 493906 T 02/24/26 60031030 42064 PARTS 49.03 INVOICE: 103626
117210 01/07/26 3000 493906 T 02/24/26 60031030 42064 PARTS 132.07 INVOICE: 101916
117213 01/13/26 3000 493906 T 02/24/26 60031030 42064 PARTS 154.49 INVOICE: 102691
117346 01/23/26 3000 493906 T 02/24/26 60031030 42064 PARTS 698.40 INVOICE: 104027
117346 01/23/26 493906 T 02/24/26 60031030 42064 PARTS -310.94 INVOICE: 104027
VENDOR TOTALS .00 YTD INVOICED 10,739.19 YTD PAID 2,286.68 122446 CONTRERAS, FRANKIE
117228 02/09/26 493907 T 02/24/26 29054010 45604 FINANCIAL INCENTIVES 30.00 INVOICE: 2900-111766
VENDOR TOTALS .00 YTD INVOICED 240.00 YTD PAID 30.00
92043 COUNTRY HILLS ANIMAL CLINIC
117153 01/09/26 493908 T 02/24/26 10002205 45594 K-9 EXPENSES 1,789.51 INVOICE: 107
117163 01/09/26 493908 T 02/24/26 10002205 45594 K-9 EXPENSES 181.58 INVOICE: 109
VENDOR TOTALS .00 YTD INVOICED 11,402.22 YTD PAID 1,971.09 103355 CRENSHAW WHOLESALE ELECTRIC
117411 02/11/26 493909 T 02/24/26 10061100 42014 REPAIR & MAINTENANCE SUPP 67.38 INVOICE: 876346
VENDOR TOTALS 295.93 YTD INVOICED 13,606.41 YTD PAID 67.38 123597 DELTA DENTAL INSURANCE COMPANY
117240 02/01/26 493910 T 02/24/26 990 20900 INSURANCE BENEFITS 898.96 INVOICE: BE006898680
City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 02/17/2026 09:56
User: sdixon
Program ID: appdwarr
CHECK: C022426 TO FISCAL 2026/01 07/01/2025 TO 06/30/2026
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION VENDOR TOTALS 1,137.67 YTD INVOICED 8,310.18 YTD PAID 898.96 91894 DELTA DENTAL OF CALIFORNIA
117241 02/01/26 493911 T 02/24/26 990 20900 INSURANCE BENEFITS 15,096.05 INVOICE: BE006899658
VENDOR TOTALS 15,112.35 YTD INVOICED 120,666.14 YTD PAID 15,096.05 119887 DEWEY PEST CONTROL
117406 02/01/26 493912 T 02/24/26 32420030 41144 PHLA PROJECT 155.00 INVOICE: 17881168
117408 02/01/26 493912 T 02/24/26 32420030 41144 PHLA PROJECT 167.00 INVOICE: 17886812
117409 02/01/26 493912 T 02/24/26 32420030 41144 PHLA PROJECT 37.00 INVOICE: 17888552
VENDOR TOTALS .00 YTD INVOICED 2,597.00 YTD PAID 359.00 121407 DIAL INSTANT PRINTERS, INC.
117167 01/21/26 493913 T 02/24/26 10002215 41514 OPERATING SUPPLIES 121.55 INVOICE: 12061
117168 02/02/26 493913 T 02/24/26 10002215 41514 OPERATING SUPPLIES 121.55 INVOICE: 12062
117169 02/02/26 493913 T 02/24/26 10021010 41514 OPERATING SUPPLIES 204.43 INVOICE: 12064
117169 02/02/26 493913 T 02/24/26 10001222 41514 OPERATING SUPPLIES 204.43 INVOICE: 12064
117169 02/02/26 493913 T 02/24/26 10002205 41514 OPERATING SUPPLIES 204.42 INVOICE: 12064
VENDOR TOTALS .00 YTD INVOICED 8,348.33 YTD PAID 856.38 119648 DIESEL AIR INC.
116970 01/26/26 493914 T 02/24/26 60031030 42064 PARTS 85.00 INVOICE: 33055
VENDOR TOTALS .00 YTD INVOICED 425.00 YTD PAID 85.00
122402 DRC ENGINEERING, INC.
116945 01/03/26 493915 T 02/24/26 18110050 44924 CIVIC CENTER PARK 3,347.26 INVOICE: 24-011-8
117077 12/06/25 3176 493915 T 02/24/26 29550060 40514 CONTRACT SERVICES 9,960.00 INVOICE: 25-523-3
117487 01/03/26 493915 T 02/24/26 29550060 40514 CONTRACT SERVICES 2,859.50 INVOICE: 25-523-4
VENDOR TOTALS .00 YTD INVOICED 125,683.98 YTD PAID 16,166.76 6550 EDDINGS BROTHERS INC.
117093 01/26/26 493916 T 02/24/26 10061100 42014 REPAIR & MAINTENANCE SUPP 104.08 City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 02/17/2026 09:56
User: sdixon
Program ID: appdwarr
CHECK: C022426 TO FISCAL 2026/01 07/01/2025 TO 06/30/2026
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION INVOICE: 960280
VENDOR TOTALS .00 YTD INVOICED 11,213.80 YTD PAID 104.08 124707 ELLIS, CHEKYRA
117229 02/09/26 493917 T 02/24/26 10017010 45584 HEALTH AND WELLNESS 103.55 INVOICE: 1701-113259
VENDOR TOTALS .00 YTD INVOICED 103.55 YTD PAID 103.55
6680 ENTENMANN-ROVIN COMPANY
117217 02/03/26 493918 T 02/24/26 10001224 41614 UNIFORMS & SAFETY EQUIPME 1,023.50 INVOICE: 0192975-IN
117233 02/03/26 493918 T 02/24/26 10001224 41614 UNIFORMS & SAFETY EQUIPME 168.58 INVOICE: 0192985-IN
VENDOR TOTALS 1,997.00 YTD INVOICED 5,312.30 YTD PAID 1,192.08 124328 ENTERPRISE FLEET MANAGEMENT INC.
117378 01/06/26 493919 T 02/24/26 23210040 48864 VEHICLE RENTAL - GRANT RE 1,804.80 INVOICE: 464335-010626
117379 12/03/25 493919 T 02/24/26 23210040 48864 VEHICLE RENTAL - GRANT RE 1,804.80 INVOICE: 464335-120325
117380 02/04/26 493919 T 02/24/26 23210040 48864 VEHICLE RENTAL - GRANT RE 1,804.80 INVOICE: 464335-020426
117381 02/04/26 2721 493919 T 02/24/26 22210010 47404 MACHINERY & EQUIPMENT 5,678.44 INVOICE: 464335-020426
VENDOR TOTALS 7,692.06 YTD INVOICED 58,349.06 YTD PAID 11,092.84 94292 FEDERAL EXPRESS CORPORATION
117084 02/02/26 493865 P 02/24/26 10015010 43044 POSTAGE 81.77 INVOICE: 9-160-81801
VENDOR TOTALS 69.05 YTD INVOICED 1,506.89 YTD PAID 81.77 124164 FINE LINE AUTO BODY INC
116989 01/26/26 2966 493920 T 02/24/26 60031030 42004 COLLISION REPAIR 4,139.46 INVOICE: 17161
VENDOR TOTALS 37,127.85 YTD INVOICED 150,642.36 YTD PAID 4,139.46 124165 FLOR JORGE
117219 02/12/26 493921 T 02/24/26 29054010 45604 FINANCIAL INCENTIVES 50.00 INVOICE: 2900-111765
VENDOR TOTALS .00 YTD INVOICED 100.00 YTD PAID 50.00
120493 CORPAY, INC./CORPAY TECHNOLOGIES OPERATING CO. LLC 117147 02/02/26 493922 T 02/24/26 60031030 45144 GASOLINE & OIL 4,650.43 INVOICE: NP69943094
City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 02/17/2026 09:56
User: sdixon
Program ID: appdwarr
CHECK: C022426 TO FISCAL 2026/01 07/01/2025 TO 06/30/2026
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION VENDOR TOTALS .00 YTD INVOICED 27,847.29 YTD PAID 4,650.43 122899 GARCIA RANGEL, AMANDA
117365 11/01/25 493923 T 02/24/26 10016010 45584 HEALTH AND WELLNESS 169.26 INVOICE: Wellness25-26-AGR2
VENDOR TOTALS .00 YTD INVOICED 2,378.33 YTD PAID 169.26 123436 GENERAL TECHNOLOGIES AND SOLUTIONS (GTS) LLC.
117080 01/28/26 3114 493924 T 02/24/26 28534000 40514 CONTRACT SERVICES 39,900.00 INVOICE: 220402-09
VENDOR TOTALS .00 YTD INVOICED 113,330.00 YTD PAID 39,900.00 119531 GOMEZ, JOSE
117392 01/27/26 493925 T 02/24/26 10001224 45124 EDUCATIONAL REIMBURSEMENT 5,400.00 INVOICE: EDUC. BCJ 565
VENDOR TOTALS .00 YTD INVOICED 5,400.00 YTD PAID 5,400.00 120011 GONZALEZ, STEVEN
117218 02/12/26 493926 T 02/24/26 29054010 45604 FINANCIAL INCENTIVES 50.00 INVOICE: 2900-111767
VENDOR TOTALS .00 YTD INVOICED 280.00 YTD PAID 50.00
97578 GRAINGER INDUSTRIAL SUPPLY
117151 01/14/26 493927 T 02/24/26 10001221 41514 OPERATING SUPPLIES 46.31 INVOICE: 9770816198
117152 01/16/26 493927 T 02/24/26 10001221 41514 OPERATING SUPPLIES 7.28 INVOICE: 9774025895
VENDOR TOTALS 264.31 YTD INVOICED 8,039.79 YTD PAID 53.59 124644 GREENBERG TRAURIG, LLP
117199 02/05/26 493928 T 02/24/26 25019020 45064 SETTLEMENTS / JUDGEMENTS 1,503.00 INVOICE: 1001284660
VENDOR TOTALS .00 YTD INVOICED 27,229.05 YTD PAID 1,503.00 115883 GREENLAND SUPPLY INC.
117412 02/04/26 493929 T 02/24/26 10061100 42014 REPAIR & MAINTENANCE SUPP 45.14 INVOICE: 283832
VENDOR TOTALS .00 YTD INVOICED 4,574.63 YTD PAID 45.14
124341 HANSEN, PAIGE KATHERINE AAGAARD
117000 02/02/26 493930 T 02/24/26 10042010 45584 HEALTH AND WELLNESS 172.01 INVOICE: Wellness3
City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 02/17/2026 09:56
User: sdixon
Program ID: appdwarr
CHECK: C022426 TO FISCAL 2026/01 07/01/2025 TO 06/30/2026
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION VENDOR TOTALS .00 YTD INVOICED 446.76 YTD PAID 172.01
120536 HARRIS & ASSOCIATES, INC.
116780 01/23/26 2943 493931 T 02/24/26 10042010 40514 CONTRACT SERVICES 7,358.50 INVOICE: 70838
116921 01/23/26 493931 T 02/24/26 46201113 40514 CONTRACT SERVICES 3,391.50 INVOICE: 70839
117181 02/11/26 3051 493931 T 02/24/26 46101112 40514 CONTRACT SERVICES 880.00 INVOICE: 71142
117197 02/11/26 3050 493931 T 02/24/26 10016010 40514 CONTRACT SERVICES 3,100.00 INVOICE: 71141
VENDOR TOTALS .00 YTD INVOICED 173,631.00 YTD PAID 14,730.00 123559 HARRIS, ALLEN
117414 02/07/26 493932 T 02/24/26 10061050 40264 CONTRACT LABOR SALARIES 105.00 INVOICE: 1
VENDOR TOTALS 230.00 YTD INVOICED 1,115.00 YTD PAID 105.00 106271 HAWTHORNE CHAMBER OF COMMERCE
117105 02/03/26 493933 T 02/24/26 10011500 45104 DUES & SUBSCRIPTIONS 1,500.00 INVOICE: 106
VENDOR TOTALS .00 YTD INVOICED 6,694.00 YTD PAID 1,500.00 111035 HAWTHORNE ELECTRIC SUPPLY
117410 01/15/26 493934 T 02/24/26 10061100 42514 SMALL TOOLS & MINOR EQUIP 287.30 INVOICE: 410135
VENDOR TOTALS .00 YTD INVOICED 2,610.83 YTD PAID 287.30 8950 HAWTHORNE HARDWARE
117003 01/28/26 493935 T 02/24/26 10061050 42514 SMALL TOOLS & MINOR EQUIP 26.49 INVOICE: 452486
VENDOR TOTALS .00 YTD INVOICED 249.13 YTD PAID 26.49
124718 SOCAL SURGERY CENTER, LLC.
117261 02/12/25 493866 P 02/24/26 10000101 51114 BUSINESS LICENSE TAXES 4,600.00 INVOICE: req#2000-114995
VENDOR TOTALS .00 YTD INVOICED 4,600.00 YTD PAID 4,600.00 121449 HDL COREN & CONE
117078 01/27/26 3049 493936 T 02/24/26 10016010 40514 CONTRACT SERVICES 4,694.73 INVOICE: SIN058836
VENDOR TOTALS 5,489.73 YTD INVOICED 14,879.19 YTD PAID 4,694.73 City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 02/17/2026 09:56
User: sdixon
Program ID: appdwarr
CHECK: C022426 TO FISCAL 2026/01 07/01/2025 TO 06/30/2026
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 106838 HENRY, MILDRED
117220 02/10/26 493937 T 02/24/26 10002205 40454 HEALTH INSURANCE BENEFITS 362.67 INVOICE: 1701-113262
VENDOR TOTALS .00 YTD INVOICED 448.83 YTD PAID 362.67
105919 HERALD PUBLICATIONS
116778 01/22/26 493938 T 02/24/26 10042010 43024 LEGAL ADVERTISING 105.00 INVOICE: 63160
VENDOR TOTALS .00 YTD INVOICED 13,385.00 YTD PAID 105.00 121623 HERO INDUSTRIES, INC.
117149 08/26/25 493939 T 02/24/26 10001206 41514 OPERATING SUPPLIES 4,825.00 INVOICE: 22611
VENDOR TOTALS .00 YTD INVOICED 8,275.00 YTD PAID 4,825.00 114714 INFANTE, RAFAEL
117092 01/21/26 493940 T 02/24/26 10061100 42014 REPAIR & MAINTENANCE SUPP 436.75 INVOICE: 031610
VENDOR TOTALS .00 YTD INVOICED 6,855.72 YTD PAID 436.75 112444 INSITE GRAFIX
117068 02/03/26 493941 T 02/24/26 10016020 41514 OPERATING SUPPLIES 221.00 INVOICE: 10614
117502 02/13/26 493941 T 02/24/26 10015010 41514 OPERATING SUPPLIES 221.00 INVOICE: 10636
VENDOR TOTALS 773.50 YTD INVOICED 4,394.85 YTD PAID 442.00 120150 INSTANT FIRE PROTECTION
117011 12/16/25 493942 T 02/24/26 10061100 42014 REPAIR & MAINTENANCE SUPP 282.53 INVOICE: 18909
VENDOR TOTALS .00 YTD INVOICED 282.53 YTD PAID 282.53
115272 JEREZ AUTO DETAIL INC.
116973 01/21/26 493943 T 02/24/26 60031030 40514 CONTRACT SERVICES 140.00 INVOICE: 060050
117224 01/28/26 493943 T 02/24/26 60031030 40514 CONTRACT SERVICES 120.00 INVOICE: 093850
VENDOR TOTALS .00 YTD INVOICED 920.00 YTD PAID 260.00
122781 JOHNSON 225 INVESTIGATIONS
117144 01/22/26 3172 493944 T 02/24/26 10021010 40514 CONTRACT SERVICES 10,200.00 INVOICE: 1125
117155 01/27/26 493944 T 02/24/26 10021010 40514 CONTRACT SERVICES 4,120.00 INVOICE: 1126
City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 02/17/2026 09:56
User: sdixon
Program ID: appdwarr
CHECK: C022426 TO FISCAL 2026/01 07/01/2025 TO 06/30/2026
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 117386 02/10/26 493944 T 02/24/26 10021010 40514 CONTRACT SERVICES 1,330.00 INVOICE: 1127
VENDOR TOTALS 8,350.00 YTD INVOICED 90,730.00 YTD PAID 15,650.00 113091 K & P JANITORIAL SERVICES INC
117214 01/01/26 2930 493945 T 02/24/26 10001221 42024 BUILDING MAINTENANCE 15,207.00 INVOICE: 77371
117216 01/21/26 2930 493945 T 02/24/26 10001221 42024 BUILDING MAINTENANCE 15,207.00 INVOICE: 117580
VENDOR TOTALS .00 YTD INVOICED 159,349.12 YTD PAID 30,414.00 107673 KANG, TOMMY
116744 12/11/25 493946 T 02/24/26 10001224 45124 EDUCATIONAL REIMBURSEMENT 459.00 INVOICE: EDUC. BAM 402
116745 12/25/25 493946 T 02/24/26 10001224 45124 EDUCATIONAL REIMBURSEMENT 459.00 INVOICE: EDUC. BAM 411
117393 01/29/26 493946 T 02/24/26 10001224 45124 EDUCATIONAL REIMBURSEMENT 459.00 INVOICE: EDUC. BCJ 100
117394 01/16/26 493946 T 02/24/26 10001224 45124 EDUCATIONAL REIMBURSEMENT 459.00 INVOICE: EDUC. BAM 421
VENDOR TOTALS .00 YTD INVOICED 1,836.00 YTD PAID 1,836.00 110516 KIM, ROBERT
117230 02/09/26 493947 T 02/24/26 10011500 44084 RETIREE HEALTH INSURANCE 4,959.29 INVOICE: 1701-113260
VENDOR TOTALS .00 YTD INVOICED 22,026.30 YTD PAID 4,959.29 123456 KIMLEY-HORN AND ASSOCIATES, INC.
116775 12/31/25 2767 493948 T 02/24/26 10042010 40514 CONTRACT SERVICES 19,778.81 INVOICE: 34470296
117082 12/31/25 2725 493948 T 02/24/26 10041030 40514 CONTRACT SERVICES 24,317.61 INVOICE: 34396815
117082 12/31/25 2725 493948 T 02/24/26 28534000 40514 CONTRACT SERVICES 2,275.12 INVOICE: 34396815
VENDOR TOTALS .00 YTD INVOICED 691,147.87 YTD PAID 46,371.54 102360 L A COUNTY FIRE DEPARTMENT
116990 01/30/26 2918 493867 P 02/24/26 10050121 40774 COUNTY FIRE SERVICES 1,280,608.92 INVOICE: C0013954
VENDOR TOTALS 2,438,234.29 YTD INVOICED 11,148,605.40 YTD PAID 1,280,608.92 105446 L A COUNTY SHERIFF'S DEPT
117156 01/22/26 2928 493949 T 02/24/26 10002220 45314 PRISONER EXPENSE 2,701.78 INVOICE: 261586BL
City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 02/17/2026 09:56
User: sdixon
Program ID: appdwarr
CHECK: C022426 TO FISCAL 2026/01 07/01/2025 TO 06/30/2026
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION VENDOR TOTALS .00 YTD INVOICED 17,704.49 YTD PAID 2,701.78 121776 LA UNIFORMS & TAILORING, INC.
117275 01/05/26 2929 493950 T 02/24/26 10001224 41614 UNIFORMS & SAFETY EQUIPME 552.28 INVOICE: 30712
117276 01/06/26 2929 493950 T 02/24/26 10001224 41614 UNIFORMS & SAFETY EQUIPME 150.86 INVOICE: 30723
117277 01/06/26 2929 493950 T 02/24/26 10001224 41614 UNIFORMS & SAFETY EQUIPME 402.95 INVOICE: 30731
117279 01/07/26 2929 493950 T 02/24/26 10001224 41614 UNIFORMS & SAFETY EQUIPME 618.58 INVOICE: 30746
117280 01/10/26 2929 493950 T 02/24/26 10001224 41614 UNIFORMS & SAFETY EQUIPME 237.52 INVOICE: 30781
117281 01/12/26 2929 493950 T 02/24/26 10001224 41614 UNIFORMS & SAFETY EQUIPME 276.14 INVOICE: 30810
117282 01/13/26 2929 493950 T 02/24/26 10001224 41614 UNIFORMS & SAFETY EQUIPME 278.35 INVOICE: 30826
117284 01/13/26 2929 493950 T 02/24/26 10001224 41614 UNIFORMS & SAFETY EQUIPME 138.07 INVOICE: 30827
117285 01/14/26 2929 493950 T 02/24/26 10001224 41614 UNIFORMS & SAFETY EQUIPME 127.02 INVOICE: 30837
117286 09/15/25 2929 493950 T 02/24/26 10001224 41614 UNIFORMS & SAFETY EQUIPME 36.52 INVOICE: 29073
117287 01/15/26 2929 493950 T 02/24/26 10001224 41614 UNIFORMS & SAFETY EQUIPME 345.86 INVOICE: 30862
117289 01/15/26 2929 493950 T 02/24/26 10001224 41614 UNIFORMS & SAFETY EQUIPME 331.39 INVOICE: 30863
117293 01/15/26 2929 493950 T 02/24/26 10001224 41614 UNIFORMS & SAFETY EQUIPME 345.86 INVOICE: 30864
117298 01/15/26 2929 493950 T 02/24/26 10001224 41614 UNIFORMS & SAFETY EQUIPME 70.66 INVOICE: 30868
117301 01/16/26 2929 493950 T 02/24/26 10001224 41614 UNIFORMS & SAFETY EQUIPME 276.14 INVOICE: 30887
117302 01/16/26 2929 493950 T 02/24/26 10001224 41614 UNIFORMS & SAFETY EQUIPME 10.00 INVOICE: 30893
117303 01/19/26 2929 493950 T 02/24/26 10001224 41614 UNIFORMS & SAFETY EQUIPME 202.10 INVOICE: 30915
117304 01/19/26 2929 493950 T 02/24/26 10001224 41614 UNIFORMS & SAFETY EQUIPME 196.58 INVOICE: 30916
117307 01/20/26 2929 493950 T 02/24/26 10001224 41614 UNIFORMS & SAFETY EQUIPME 196.58 INVOICE: 30930
117310 01/20/26 2929 493950 T 02/24/26 10001224 41614 UNIFORMS & SAFETY EQUIPME 196.58 INVOICE: 30931
117312 01/20/26 2929 493950 T 02/24/26 10001224 41614 UNIFORMS & SAFETY EQUIPME 15.00 INVOICE: 30935
117314 01/20/26 2929 493950 T 02/24/26 10001224 41614 UNIFORMS & SAFETY EQUIPME 351.22 INVOICE: 30941
117315 01/20/26 2929 493950 T 02/24/26 10001224 41614 UNIFORMS & SAFETY EQUIPME 216.47 INVOICE: 30942
117316 01/20/26 2929 493950 T 02/24/26 10001224 41614 UNIFORMS & SAFETY EQUIPME 56.30 City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 02/17/2026 09:56
User: sdixon
Program ID: appdwarr
CHECK: C022426 TO FISCAL 2026/01 07/01/2025 TO 06/30/2026
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION INVOICE: 30943
117317 01/21/26 2929 493950 T 02/24/26 10001224 41614 UNIFORMS & SAFETY EQUIPME 670.42 INVOICE: 30951
117318 01/22/26 2929 493950 T 02/24/26 10001224 41614 UNIFORMS & SAFETY EQUIPME 60.00 INVOICE: 30992
117319 01/23/26 2929 493950 T 02/24/26 10001224 41614 UNIFORMS & SAFETY EQUIPME 10.00 INVOICE: 31004
117320 01/23/26 2929 493950 T 02/24/26 10001224 41614 UNIFORMS & SAFETY EQUIPME 30.00 INVOICE: 31016
117321 01/23/26 2929 493950 T 02/24/26 10001224 41614 UNIFORMS & SAFETY EQUIPME 15.00 INVOICE: 31017
117322 01/24/26 2929 493950 T 02/24/26 10001224 41614 UNIFORMS & SAFETY EQUIPME 10.00 INVOICE: 31033
117323 01/26/26 2929 493950 T 02/24/26 10001224 41614 UNIFORMS & SAFETY EQUIPME 171.22 INVOICE: 31046
117324 01/27/26 2929 493950 T 02/24/26 10001224 41614 UNIFORMS & SAFETY EQUIPME 28.78 INVOICE: 31070
117325 01/27/26 2929 493950 T 02/24/26 10001224 41614 UNIFORMS & SAFETY EQUIPME 336.91 INVOICE: 31071
117326 01/27/26 2929 493950 T 02/24/26 10001224 41614 UNIFORMS & SAFETY EQUIPME 2,457.46 INVOICE: 31081
117327 01/27/26 2929 493950 T 02/24/26 10001224 41614 UNIFORMS & SAFETY EQUIPME 2,261.99 INVOICE: 31103
117328 01/27/26 2929 493950 T 02/24/26 10001224 41614 UNIFORMS & SAFETY EQUIPME 146.85 INVOICE: 31104
117329 01/27/26 2929 493950 T 02/24/26 10001224 41614 UNIFORMS & SAFETY EQUIPME 530.18 INVOICE: 31105
117330 01/28/26 2929 493950 T 02/24/26 10001224 41614 UNIFORMS & SAFETY EQUIPME 15.41 INVOICE: 31112
117356 01/28/26 2929 493950 T 02/24/26 10001224 41614 UNIFORMS & SAFETY EQUIPME 10.00 INVOICE: 31117
117357 01/29/26 2929 493950 T 02/24/26 10001224 41614 UNIFORMS & SAFETY EQUIPME 387.63 INVOICE: 31137
117360 01/29/26 2929 493950 T 02/24/26 10001224 41614 UNIFORMS & SAFETY EQUIPME 154.59 INVOICE: 31139
117363 01/29/26 2929 493950 T 02/24/26 10001224 41614 UNIFORMS & SAFETY EQUIPME 296.14 INVOICE: 31158
117364 01/30/26 2929 493950 T 02/24/26 10001224 41614 UNIFORMS & SAFETY EQUIPME 216.58 INVOICE: 31164
117366 01/30/26 2929 493950 T 02/24/26 10001224 41614 UNIFORMS & SAFETY EQUIPME 138.07 INVOICE: 31166
117368 01/30/26 2929 493950 T 02/24/26 10001224 41614 UNIFORMS & SAFETY EQUIPME 215.36 INVOICE: 31170
117369 01/31/26 2929 493950 T 02/24/26 10001224 41614 UNIFORMS & SAFETY EQUIPME 281.66 INVOICE: 31178
VENDOR TOTALS .00 YTD INVOICED 44,515.55 YTD PAID 14,073.28 116247 LAMB, THEODORE
117002 01/31/26 493951 T 02/24/26 10015020 40514 CONTRACT SERVICES 2,760.00 INVOICE: 01/31/2026
City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 02/17/2026 09:56
User: sdixon
Program ID: appdwarr
CHECK: C022426 TO FISCAL 2026/01 07/01/2025 TO 06/30/2026
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION VENDOR TOTALS .00 YTD INVOICED 16,800.00 YTD PAID 2,760.00 118893 LANE, MORGAN
117390 01/14/26 493952 T 02/24/26 10021010 45584 HEALTH AND WELLNESS 491.77 INVOICE: REIMB. 1/1/26
VENDOR TOTALS .00 YTD INVOICED 682.96 YTD PAID 491.77
122756 LARA, JOSE G.
117253 01/05/26 493953 T 02/24/26 46615731 42024 BUILDING MAINTENANCE 437.42 INVOICE: 106
117256 12/31/25 493953 T 02/24/26 46615731 42024 BUILDING MAINTENANCE 216.25 INVOICE: 105
VENDOR TOTALS .00 YTD INVOICED 3,516.22 YTD PAID 653.67 123674 LATONA, TYLER
117198 02/04/26 493954 T 02/24/26 10001224 41614 UNIFORMS & SAFETY EQUIPME 579.80 INVOICE: REIMB. 1/14/26
VENDOR TOTALS 1,377.00 YTD INVOICED 7,403.50 YTD PAID 579.80 124721 STEM STARTERS, LLC.
117266 12/22/25 493868 P 02/24/26 10000101 51114 BUSINESS LICENSE TAXES 658.00 INVOICE: REQ#2000-114996
117266 12/22/25 493868 P 02/24/26 10000106 51631 SB 1186 $4 STATE SURCHAR 4.00 INVOICE: REQ#2000-114996
VENDOR TOTALS .00 YTD INVOICED 662.00 YTD PAID 662.00
107288 LAWSON PRODUCTS, INC.
116969 01/12/26 493955 T 02/24/26 60031030 42014 REPAIR & MAINTENANCE SUPP 584.52 INVOICE: 9313126043
VENDOR TOTALS .00 YTD INVOICED 2,149.05 YTD PAID 584.52 123756 LAZATIN, MARIA
117227 02/09/26 493956 T 02/24/26 29054010 45604 FINANCIAL INCENTIVES 30.00 INVOICE: 2900-111765
117456 02/13/26 493956 T 02/24/26 10017010 45584 HEALTH AND WELLNESS 39.20 INVOICE: 1701-113265
VENDOR TOTALS 110.24 YTD INVOICED 815.98 YTD PAID 69.20 101286 SCP DISTRIBUTORS LLC
117091 01/28/26 493957 T 02/24/26 10061090 45754 SWIM POOL CHEMICALS 2,532.85 INVOICE: 37248910
117431 02/06/26 493957 T 02/24/26 10061090 41514 OPERATING SUPPLIES 638.81 INVOICE: 71693106
City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 02/17/2026 09:56
User: sdixon
Program ID: appdwarr
CHECK: C022426 TO FISCAL 2026/01 07/01/2025 TO 06/30/2026
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION VENDOR TOTALS .00 YTD INVOICED 43,745.45 YTD PAID 3,171.66 123417 LOS ANGELES CENTERS FOR ALCOHOL AND DRUG ABUSE
117278 01/14/26 3011 493958 T 02/24/26 78480020 44824 SUPPORTIVE SERVICES 63,646.31 INVOICE: #32 (December 2025)
VENDOR TOTALS .00 YTD INVOICED 674,430.15 YTD PAID 63,646.31 105143 LOS ANGELES COUNTY
117148 01/25/26 493869 P 02/24/26 10001230 40514 CONTRACT SERVICES 777.48 INVOICE: December 2025
VENDOR TOTALS .00 YTD INVOICED 21,540.92 YTD PAID 777.48 124716 LOS ANGELES LEGAL ADVOCATES
117236 02/09/26 493870 P 02/24/26 25019020 45064 SETTLEMENTS / JUDGEMENTS 13,500.00 INVOICE: 02/09/2026
VENDOR TOTALS .00 YTD INVOICED 13,500.00 YTD PAID 13,500.00 105619 LOS ANGELES TIMES
117204 12/02/25 493871 P 02/24/26 10002220 45314 PRISONER EXPENSE 801.65 INVOICE: Subs. Jan-April 2026
VENDOR TOTALS .00 YTD INVOICED 2,818.61 YTD PAID 801.65 123341 LOTUS TELECOMMUNICATIONS, LLC
117166 02/02/26 493959 T 02/24/26 10001221 42024 BUILDING MAINTENANCE 2,179.56 INVOICE: LTC25-0122-01
VENDOR TOTALS .00 YTD INVOICED 8,781.54 YTD PAID 2,179.56 117975 LUCERO, MATTHEW
116747 01/06/26 493960 T 02/24/26 10001224 45124 EDUCATIONAL REIMBURSEMENT 704.99 INVOICE: EDUC. BCJ 553
117396 01/27/26 493960 T 02/24/26 10001224 45124 EDUCATIONAL REIMBURSEMENT 675.00 INVOICE: EDUC. BCJ 562
VENDOR TOTALS .00 YTD INVOICED 5,286.76 YTD PAID 1,379.99 124159 MARIA KARLA EDITH CASTILLO MONTERROSO
117268 02/02/26 493961 T 02/24/26 46447150 42024 BUILDING MAINTENANCE 140.00 INVOICE: N/A
VENDOR TOTALS .00 YTD INVOICED 2,440.00 YTD PAID 140.00 123577 MARTINEZ, NANCY
117391 01/29/26 493962 T 02/24/26 10021010 45584 HEALTH AND WELLNESS 299.07 INVOICE: REIMB. 11/3/25
City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 02/17/2026 09:56
User: sdixon
Program ID: appdwarr
CHECK: C022426 TO FISCAL 2026/01 07/01/2025 TO 06/30/2026
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION VENDOR TOTALS .00 YTD INVOICED 299.07 YTD PAID 299.07
123469 MCCLAIN, TERRENCE
117096 01/28/26 493963 T 02/24/26 10061070 41514 OPERATING SUPPLIES 450.00 INVOICE: 702
VENDOR TOTALS .00 YTD INVOICED 1,350.00 YTD PAID 450.00 124287 MENDOZA, EDWIN
117388 01/26/26 493964 T 02/24/26 10021010 45584 HEALTH AND WELLNESS 500.00 INVOICE: REIMB. 11/28/25
VENDOR TOTALS .00 YTD INVOICED 500.00 YTD PAID 500.00
100108 MERRIMAC PETROLEUM, INC.
116984 01/29/26 2965 493965 T 02/24/26 60031030 45144 GASOLINE & OIL 12,802.70 INVOICE: 2244949
VENDOR TOTALS 35,779.87 YTD INVOICED 278,140.17 YTD PAID 12,802.70 117066 MICHALCZAK, JEROME
117202 02/04/26 493966 T 02/24/26 10001224 45184 TRAINING 100.00 INVOICE: REIMB. 1/22/2026
VENDOR TOTALS .00 YTD INVOICED 247.16 YTD PAID 100.00
115113 MITSUBISHI ELECTRIC &
117145 02/01/26 493967 T 02/24/26 10001221 42024 BUILDING MAINTENANCE 741.26 INVOICE: 555625
VENDOR TOTALS 689.41 YTD INVOICED 3,178.23 YTD PAID 741.26 123783 MORGAN STANLEY CAPITAL MANAGEMENT LLC
117222 01/07/26 3068 493968 T 02/24/26 10017010 40514 CONTRACT SERVICES 7,500.00 INVOICE: 11047626007
VENDOR TOTALS .00 YTD INVOICED 30,000.00 YTD PAID 7,500.00 123082 MPD PLUMBING, INC.
117265 01/31/26 493969 T 02/24/26 46715732 42024 BUILDING MAINTENANCE 220.00 INVOICE: WO#01302026
VENDOR TOTALS .00 YTD INVOICED 1,585.00 YTD PAID 220.00 124321 US BANK NATIONAL ASSOCIATION
117384 01/30/26 493970 T 02/24/26 23002244 45144 GASOLINE & OIL 401.31 INVOICE: 605156411
VENDOR TOTALS 453.86 YTD INVOICED 4,587.88 YTD PAID 401.31 City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 02/17/2026 09:56
User: sdixon
Program ID: appdwarr
CHECK: C022426 TO FISCAL 2026/01 07/01/2025 TO 06/30/2026
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 120965 NEW LOOK AUTO DETAIL
117264 01/19/26 493971 T 02/24/26 60031030 40514 CONTRACT SERVICES 540.00 INVOICE: 4279
117271 01/20/26 493971 T 02/24/26 60031030 40514 CONTRACT SERVICES 435.00 INVOICE: 4280
117283 01/22/26 493971 T 02/24/26 60031030 40514 CONTRACT SERVICES 540.00 INVOICE: 4281
117288 01/24/26 493971 T 02/24/26 60031030 40514 CONTRACT SERVICES 520.00 INVOICE: 4283
117290 01/02/26 493971 T 02/24/26 60031030 40514 CONTRACT SERVICES 540.00 INVOICE: 4273
117291 01/05/26 493971 T 02/24/26 60031030 40514 CONTRACT SERVICES 520.00 INVOICE: 4274
117292 01/06/26 493971 T 02/24/26 60031030 40514 CONTRACT SERVICES 390.00 INVOICE: 4275
117294 01/08/26 493971 T 02/24/26 60031030 40514 CONTRACT SERVICES 560.00 INVOICE: 4276
117296 01/12/26 493971 T 02/24/26 60031030 40514 CONTRACT SERVICES 520.00 INVOICE: 4277
117297 01/15/26 493971 T 02/24/26 60031030 40514 CONTRACT SERVICES 540.00 INVOICE: 4278
VENDOR TOTALS 12,385.00 YTD INVOICED 48,730.00 YTD PAID 5,105.00 113242 NORMAN, KEITH
117425 02/07/26 493972 T 02/24/26 10061050 40264 CONTRACT LABOR SALARIES 105.00 INVOICE: 1
VENDOR TOTALS .00 YTD INVOICED 185.00 YTD PAID 105.00
116422 OCCU-MED, LTD.
117223 10/31/25 493973 T 02/24/26 10017010 45324 PHYSICAL EXAMINATIONS 2,021.11 INVOICE: 1125111.1
VENDOR TOTALS .00 YTD INVOICED 9,445.97 YTD PAID 2,021.11 123279 ODP BUSINESS SOLUTIONS, LLC
116864 01/16/26 493974 T 02/24/26 10061010 41404 MATERIALS, SUPPLIES & OTH 93.22 INVOICE: 452753362001
116959 01/14/26 493974 T 02/24/26 10043010 41514 OPERATING SUPPLIES 131.21 INVOICE: 455510652001
116965 01/14/26 493974 T 02/24/26 10043010 41514 OPERATING SUPPLIES 14.86 INVOICE: 455516383001
117085 01/28/26 493974 T 02/24/26 10015020 41514 OPERATING SUPPLIES 113.76 INVOICE: 451697988001
117157 01/05/26 493974 T 02/24/26 10002215 41514 OPERATING SUPPLIES 26.50 INVOICE: 452624055002
117158 01/29/26 493974 T 02/24/26 10002215 41514 OPERATING SUPPLIES 60.63 INVOICE: 457637627001
117159 01/29/26 493974 T 02/24/26 10002215 41514 OPERATING SUPPLIES 26.50 INVOICE: 457646527001
City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 02/17/2026 09:56
User: sdixon
Program ID: appdwarr
CHECK: C022426 TO FISCAL 2026/01 07/01/2025 TO 06/30/2026
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 117243 02/06/26 493974 T 02/24/26 25019010 41514 OPERATING SUPPLIES 18.64 INVOICE: 458808364001
117371 12/10/25 493974 T 02/24/26 10012010 41514 OPERATING SUPPLIES 101.38 INVOICE: 450397509001
VENDOR TOTALS 3,829.70 YTD INVOICED 27,496.96 YTD PAID 586.70 123098 ORKIN SERVICES OF CALIFORNIA, INC
117088 01/30/26 493976 T 02/24/26 10061120 40514 CONTRACT SERVICES 308.29 INVOICE: 290459304
117089 01/12/26 493977 T 02/24/26 10061120 40514 CONTRACT SERVICES 308.29 INVOICE: 290459303
117090 12/11/25 493978 T 02/24/26 10061120 40514 CONTRACT SERVICES 276.00 INVOICE: 288979149
117150 01/28/26 493975 T 02/24/26 10001221 41514 OPERATING SUPPLIES 156.36 INVOICE: 290459299
VENDOR TOTALS 276.00 YTD INVOICED 9,586.86 YTD PAID 1,048.94 124657 PET ASSURE CORP
117237 02/05/26 493979 T 02/24/26 990 20900 INSURANCE BENEFITS 18.50 INVOICE: 240206
VENDOR TOTALS .00 YTD INVOICED 55.50 YTD PAID 18.50
123188 PETDATA, INC.
117083 12/31/25 493872 P 02/24/26 10000103 51332 ANIMAL LICENSES 2,105.97 INVOICE: 14778
VENDOR TOTALS .00 YTD INVOICED 2,105.97 YTD PAID 2,105.97 124350 POST, JOY
117066 01/29/26 493980 T 02/24/26 10012010 45124 EDUCATIONAL REIMBURSEMENT 798.70 INVOICE: 202600003
VENDOR TOTALS .00 YTD INVOICED 1,298.70 YTD PAID 798.70 16650 PRUDENTIAL OVERALL SUPPLY
116971 01/29/26 493981 T 02/24/26 60031030 40514 CONTRACT SERVICES 85.35 INVOICE: 43092678
116972 01/29/26 493981 T 02/24/26 60031030 40514 CONTRACT SERVICES 75.00 INVOICE: 43092679
116978 01/22/26 493981 T 02/24/26 60031030 40514 CONTRACT SERVICES 82.65 INVOICE: 43090959
116979 01/15/26 493981 T 02/24/26 60031030 40514 CONTRACT SERVICES 287.70 INVOICE: 43089260
116979 01/15/26 493981 T 02/24/26 60031030 40514 CONTRACT SERVICES -191.37 INVOICE: 43089260
116980 01/22/26 493981 T 02/24/26 60031030 40514 CONTRACT SERVICES 58.39 INVOICE: 43090960
117252 02/05/26 493981 T 02/24/26 60031030 40514 CONTRACT SERVICES 82.65 City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 02/17/2026 09:56
User: sdixon
Program ID: appdwarr
CHECK: C022426 TO FISCAL 2026/01 07/01/2025 TO 06/30/2026
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION INVOICE: 43094375
VENDOR TOTALS 231.50 YTD INVOICED 4,413.89 YTD PAID 480.37 118988 QUADIENT FINANCE USA, INC.
117072 01/28/26 2912 493982 T 02/24/26 10011500 43044 POSTAGE 194.20 INVOICE: INV17905183
VENDOR TOTALS .00 YTD INVOICED 22,642.28 YTD PAID 194.20 123536 R & A TANK TECHNOLOGIES LLC
117247 02/05/26 493983 T 02/24/26 60031030 40514 CONTRACT SERVICES 175.00 INVOICE: 010127-52
117250 02/05/26 493983 T 02/24/26 60031030 40514 CONTRACT SERVICES 175.00 INVOICE: 010127-53
117255 02/04/26 493983 T 02/24/26 60031030 40514 CONTRACT SERVICES 300.00 INVOICE: 01027-11
117258 02/04/26 493983 T 02/24/26 60031030 40514 CONTRACT SERVICES 300.00 INVOICE: 010127-12
117259 02/03/26 493983 T 02/24/26 60031030 40514 CONTRACT SERVICES 473.50 INVOICE: 01026-35
VENDOR TOTALS 700.00 YTD INVOICED 10,456.50 YTD PAID 1,423.50 123013 RACE TELECOMMUNICATIONS, INC.
117398 12/01/25 2982 493873 P 02/24/26 10001222 43054 TELEPHONE 2,805.00 INVOICE: RC1902208
117399 01/01/26 2982 493874 P 02/24/26 10001222 43054 TELEPHONE 2,805.00 INVOICE: RC1950519
117401 02/01/26 2982 493875 P 02/24/26 10001222 43054 TELEPHONE 2,849.18 INVOICE: RC2001082
VENDOR TOTALS 2,805.00 YTD INVOICED 22,484.18 YTD PAID 8,459.18 112503 REDFLEX TRAFFIC SYSTEMS, INC.
117071 01/31/26 2947 493876 P 02/24/26 10000104 51431 VEHICLE CODE FINES 22,402.31 INVOICE: INV0116082
VENDOR TOTALS 22,432.29 YTD INVOICED 179,398.90 YTD PAID 22,402.31 124485 RENNE PUBLIC LAW GROUP, LLP.
116924 11/30/25 493984 T 02/24/26 10015020 40514 CONTRACT SERVICES 137.03 INVOICE: 15512
116925 12/31/25 493984 T 02/24/26 10015020 40514 CONTRACT SERVICES 3,064.95 INVOICE: 15760
VENDOR TOTALS .00 YTD INVOICED 5,313.01 YTD PAID 3,201.98 115776 REPUBLIC SERVICES
117235 01/31/26 493985 T 02/24/26 46715732 45444 UTILITIES 425.57 INVOICE: 0902-013917481
City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 02/17/2026 09:56
User: sdixon
Program ID: appdwarr
CHECK: C022426 TO FISCAL 2026/01 07/01/2025 TO 06/30/2026
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 117245 01/31/26 493985 T 02/24/26 46615731 45444 UTILITIES 714.18 INVOICE: 0902-013915934
117248 01/31/26 493985 T 02/24/26 46447150 45444 UTILITIES 272.11 INVOICE: 0902-013927406
117249 01/31/26 493985 T 02/24/26 46515730 45444 UTILITIES 558.50 INVOICE: 0902-013915933
VENDOR TOTALS .00 YTD INVOICED 119,756.50 YTD PAID 1,970.36 124298 REYES, ROSA
117387 01/15/26 493986 T 02/24/26 10021010 45584 HEALTH AND WELLNESS 271.86 INVOICE: REIMB. 12/20/25
VENDOR TOTALS .00 YTD INVOICED 771.86 YTD PAID 271.86
111254 ROADLINE PRODUCTS INC USA
114929 09/03/25 493987 T 02/24/26 22541060 42014 REPAIR & MAINTENANCE SUPP 1,588.16 INVOICE: 21910
114930 09/30/25 493987 T 02/24/26 22541060 42014 REPAIR & MAINTENANCE SUPP 820.74 INVOICE: 22028
114933 08/07/25 493987 T 02/24/26 22541060 42014 REPAIR & MAINTENANCE SUPP 652.23 INVOICE: 21769
114934 10/30/25 493987 T 02/24/26 22541060 42014 REPAIR & MAINTENANCE SUPP 629.85 INVOICE: 22159
VENDOR TOTALS 9,060.23 YTD INVOICED 32,223.10 YTD PAID 3,690.98 124626 ROMERO JESSICA
117104 02/03/26 493988 T 02/24/26 10061010 40504 COMMISSIONER STIPENDS 50.00 INVOICE: 2-3-26
117106 01/06/26 493988 T 02/24/26 10061010 40504 COMMISSIONER STIPENDS 50.00 INVOICE: 1-6-26
VENDOR TOTALS .00 YTD INVOICED 100.00 YTD PAID 100.00
124252 ROSALES, GEORGE
117389 01/29/26 493989 T 02/24/26 10021010 45584 HEALTH AND WELLNESS 500.00 INVOICE: REIMB. 10/28/2025
VENDOR TOTALS .00 YTD INVOICED 500.00 YTD PAID 500.00
124719 PATEL, REEKESH R.
117262 02/12/25 493877 P 02/24/26 10000101 51114 BUSINESS LICENSE TAXES 200.00 INVOICE: REQ#2000-114994
VENDOR TOTALS .00 YTD INVOICED 200.00 YTD PAID 200.00
116672 SAM'S ALIGNMENT TIRE CENTER, INC.
116985 01/16/26 3001 493990 T 02/24/26 60031030 42554 TIRES 150.00 INVOICE: 35009
116987 01/27/26 3001 493990 T 02/24/26 60031030 42554 TIRES 100.00 City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 02/17/2026 09:56
User: sdixon
Program ID: appdwarr
CHECK: C022426 TO FISCAL 2026/01 07/01/2025 TO 06/30/2026
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION INVOICE: 35079
117353 02/03/26 3001 493990 T 02/24/26 60031030 42554 TIRES 85.00 INVOICE: 35141
117354 01/06/26 3001 493990 T 02/24/26 60031030 42554 TIRES 39.77 INVOICE: 959058
117355 01/12/26 3001 493990 T 02/24/26 60031030 42554 TIRES 77.34 INVOICE: 959355
117358 01/15/26 3001 493990 T 02/24/26 60031030 42554 TIRES 24.95 INVOICE: 959680
117359 01/21/26 3001 493990 T 02/24/26 60031030 42554 TIRES 80.59 INVOICE: 960052
117361 01/28/26 3001 493990 T 02/24/26 60031030 42554 TIRES 54.15 INVOICE: 960464
VENDOR TOTALS 1,706.10 YTD INVOICED 9,168.19 YTD PAID 611.80 123693 SANDOVAL, CINTHYA HERNANDEZ
117395 12/04/25 493991 T 02/24/26 10001224 45124 EDUCATIONAL REIMBURSEMENT 459.00 INVOICE: EDUC. GED 232
VENDOR TOTALS .00 YTD INVOICED 459.00 YTD PAID 459.00
108274 SANTA MONICA-UCLA
117178 01/23/26 493992 T 02/24/26 10002215 45024 FORENSIC TESTING 1,029.00 INVOICE: 28017186
VENDOR TOTALS .00 YTD INVOICED 7,203.00 YTD PAID 1,029.00 17550 SEERS LUMBER CO INC
117004 10/09/25 493993 T 02/24/26 10061100 42014 REPAIR & MAINTENANCE SUPP 7.29 INVOICE: 118353
117005 04/22/25 493993 T 02/24/26 10061100 42014 REPAIR & MAINTENANCE SUPP 16.56 INVOICE: 115969
117006 04/02/25 493993 T 02/24/26 10061100 42014 REPAIR & MAINTENANCE SUPP 427.86 INVOICE: 115738
117007 02/24/25 493993 T 02/24/26 10061100 42014 REPAIR & MAINTENANCE SUPP 10.61 INVOICE: 115251
117010 01/07/25 493993 T 02/24/26 10061100 42014 REPAIR & MAINTENANCE SUPP 5.16 INVOICE: 114693
117087 10/10/25 493993 T 02/24/26 10061120 42014 REPAIR & MAINTENANCE SUPP 3.05 INVOICE: 118367
VENDOR TOTALS 13.58 YTD INVOICED 2,562.38 YTD PAID 470.53 121161 SKOVOLD, JOHNATHON
116746 01/02/26 493994 T 02/24/26 10001224 45124 EDUCATIONAL REIMBURSEMENT 2,025.00 INVOICE: EDUC. BAM 515
VENDOR TOTALS .00 YTD INVOICED 4,090.00 YTD PAID 2,025.00 120162 SONSRAY MACHINERY LLC.
City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 02/17/2026 09:56
User: sdixon
Program ID: appdwarr
CHECK: C022426 TO FISCAL 2026/01 07/01/2025 TO 06/30/2026
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 117221 02/09/26 493995 T 02/24/26 60031030 42064 PARTS 1,684.66 INVOICE: SWO084882-2
VENDOR TOTALS .00 YTD INVOICED 4,992.12 YTD PAID 1,684.66 101153 SOUTH BAY FORD
116926 12/18/25 2973 493996 T 02/24/26 60031030 42064 PARTS 65.76 INVOICE: 569543
116927 12/17/25 2973 493996 T 02/24/26 60031030 42064 PARTS 69.62 INVOICE: 569272
116928 12/16/25 2973 493996 T 02/24/26 60031030 42064 PARTS 734.43 INVOICE: 569258
116929 12/16/25 2973 493996 T 02/24/26 60031030 42064 PARTS 35.36 INVOICE: 569265
116938 12/17/25 2973 493996 T 02/24/26 60031030 42064 PARTS 225.13 INVOICE: 569211
116939 12/15/25 2973 493996 T 02/24/26 60031030 42064 PARTS 183.23 INVOICE: 569006
116940 12/15/25 2973 493996 T 02/24/26 60031030 42064 PARTS 111.25 INVOICE: 569058
116941 12/11/25 2973 493996 T 02/24/26 60031030 42064 PARTS 55.01 INVOICE: 568569
116942 12/09/25 2973 493996 T 02/24/26 60031030 42064 PARTS 222.50 INVOICE: 568198
116943 12/04/25 2973 493996 T 02/24/26 60031030 42064 PARTS 1,192.46 INVOICE: 567565
116947 12/04/25 2973 493996 T 02/24/26 60031030 42064 PARTS 314.26 INVOICE: 567701
116948 12/03/25 2973 493996 T 02/24/26 60031030 42064 PARTS 281.27 INVOICE: 567457
116949 12/02/25 2973 493996 T 02/24/26 60031030 42064 PARTS 1,260.19 INVOICE: 566990
116950 12/01/25 2973 493996 T 02/24/26 60031030 42064 PARTS 888.42 INVOICE: 566742
116951 12/02/25 2973 493996 T 02/24/26 60031030 42064 PARTS 492.71 INVOICE: 530417
116953 12/02/25 2973 493996 T 02/24/26 60031030 42064 PARTS 252.65 INVOICE: 567212
116954 12/02/25 2973 493996 T 02/24/26 60031030 42064 PARTS 912.87 INVOICE: 529967
116956 12/02/25 2973 493996 T 02/24/26 60031030 42064 PARTS 2,073.26 INVOICE: 567078
116957 12/02/25 2973 493996 T 02/24/26 60031030 42064 PARTS 74.12 INVOICE: 567266
116958 12/01/25 2973 493996 T 02/24/26 60031030 42064 PARTS 1,347.22 INVOICE: 566998
116960 12/01/25 2973 493996 T 02/24/26 60031030 42064 PARTS 26.41 INVOICE: 566969
116961 12/29/25 2973 493996 T 02/24/26 60031030 42064 PARTS 159.12 INVOICE: 570565
116962 12/11/25 2973 493996 T 02/24/26 60031030 42064 PARTS 615.08 City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 02/17/2026 09:56
User: sdixon
Program ID: appdwarr
CHECK: C022426 TO FISCAL 2026/01 07/01/2025 TO 06/30/2026
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION INVOICE: 530501
116963 12/08/25 2973 493996 T 02/24/26 60031030 42064 PARTS 236.35 INVOICE: 567976
116964 12/04/25 2973 493996 T 02/24/26 60031030 42064 PARTS 286.42 INVOICE: 567376
116966 12/02/25 2973 493996 T 02/24/26 60031030 42064 PARTS 442.00 INVOICE: 567192
116967 10/27/25 2973 493996 T 02/24/26 60031030 42064 PARTS 60.98 INVOICE: 562619
116968 11/25/25 2973 493996 T 02/24/26 60031030 42064 PARTS 1,129.13 INVOICE: 530359
VENDOR TOTALS .00 YTD INVOICED 182,827.57 YTD PAID 13,747.21 17857 SOUTH BAY REGIONAL PUBLIC
117367 01/21/26 3178 493997 T 02/24/26 60031030 47404 MACHINERY & EQUIPMENT 11,978.39 INVOICE: 04713
117370 01/21/26 3178 493997 T 02/24/26 60031030 47404 MACHINERY & EQUIPMENT 1,468.95 INVOICE: 04711
117372 01/21/26 3178 493997 T 02/24/26 60031030 47404 MACHINERY & EQUIPMENT 665.00 INVOICE: 04727
117373 01/21/26 3178 493997 T 02/24/26 60031030 47404 MACHINERY & EQUIPMENT 11,187.90 INVOICE: 04731
VENDOR TOTALS 1,060,762.15 YTD INVOICED 2,656,662.69 YTD PAID 25,300.24 118526 SOUTH BAY WORKFORCE INVESTMENT
116923 01/16/26 3012 493998 T 02/24/26 72750711 44994 TEEN CENTER 22,732.57 INVOICE: 21
VENDOR TOTALS .00 YTD INVOICED 101,684.70 YTD PAID 22,732.57 123166 CHARTER COMMUNICATIONS HOLDINGS, LLC
117146 02/01/26 493999 T 02/24/26 10001221 40514 CONTRACT SERVICES 1,188.56 INVOICE: 235268301020126
VENDOR TOTALS 5,322.84 YTD INVOICED 50,691.14 YTD PAID 1,188.56 124624 T & G GLOBAL LLC
117246 10/30/25 3184 494000 T 02/24/26 10011500 45154 GENERAL EXPENSE 7,175.00 INVOICE: INV-3986
VENDOR TOTALS .00 YTD INVOICED 18,175.00 YTD PAID 7,175.00 122782 SUPERHUMAN PLATFORM INC.
115406 12/01/25 494001 T 02/24/26 10001222 40514 CONTRACT SERVICES 4,140.00 INVOICE: 39712
VENDOR TOTALS .00 YTD INVOICED 4,140.00 YTD PAID 4,140.00 117117 T-MOBILE
City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 02/17/2026 09:56
User: sdixon
Program ID: appdwarr
CHECK: C022426 TO FISCAL 2026/01 07/01/2025 TO 06/30/2026
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 117269 02/08/26 494002 T 02/24/26 10002215 41514 OPERATING SUPPLIES 230.00 INVOICE: L2602080235
VENDOR TOTALS 230.00 YTD INVOICED 2,825.00 YTD PAID 230.00 124007 THE FELDHAKE LAW FIRM, APC
117067 02/02/26 3042 494003 T 02/24/26 25019020 40514 CONTRACT SERVICES 7,767.75 INVOICE: 57260
VENDOR TOTALS 4,952.50 YTD INVOICED 35,290.29 YTD PAID 7,767.75 122858 THE LOVEJOY FOUNDATION
117385 02/08/26 2927 494004 T 02/24/26 10001230 40514 CONTRACT SERVICES 16,000.00 INVOICE: COH 02012025
VENDOR TOTALS 32,000.00 YTD INVOICED 128,000.00 YTD PAID 16,000.00 115132 THE STANDARD INSURANCE CO.
116797 01/15/26 494005 T 02/24/26 990 20900 INSURANCE BENEFITS 2,267.75 INVOICE: DIV2_2/1/2026
VENDOR TOTALS 4,789.50 YTD INVOICED 16,550.75 YTD PAID 2,267.75 118571 THE STANLEY LOUIS COMPANY
117251 11/20/25 2940 494006 T 02/24/26 50410060 40514 CONTRACT SERVICES 39,291.41 INVOICE: 253149
117251 11/20/25 494006 T 02/24/26 10001221 42024 BUILDING MAINTENANCE 934.36 INVOICE: 253149
117254 11/20/25 2951 494006 T 02/24/26 50410060 40514 CONTRACT SERVICES 15,936.48 INVOICE: 253150
117254 11/20/25 494006 T 02/24/26 10001221 42024 BUILDING MAINTENANCE 3,754.07 INVOICE: 253150
VENDOR TOTALS 13,408.59 YTD INVOICED 85,397.70 YTD PAID 59,916.32 94511 THE STATE BAR OF CALIFORNIA
117073 02/03/26 493878 P 02/24/26 10015010 45104 DUES & SUBSCRIPTIONS 551.00 INVOICE: 197734
VENDOR TOTALS .00 YTD INVOICED 551.00 YTD PAID 551.00
113121 TOTAL ADMINISTRATION SVCS CORP
117225 01/27/26 493879 P 02/24/26 10017010 40514 CONTRACT SERVICES 1,027.14 INVOICE: IN3670871
VENDOR TOTALS 12,035.79 YTD INVOICED 77,740.60 YTD PAID 1,027.14 123415 TRIPEPI, SMITH AND ASSOCIATES, INC.
117074 08/15/25 2914 494007 T 02/24/26 10011500 40514 CONTRACT SERVICES 3,300.00 INVOICE: 15361
City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 02/17/2026 09:56
User: sdixon
Program ID: appdwarr
CHECK: C022426 TO FISCAL 2026/01 07/01/2025 TO 06/30/2026
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION VENDOR TOTALS 3,300.00 YTD INVOICED 37,301.25 YTD PAID 3,300.00 112885 ULINE SHIPPING SUPPLY
117184 01/26/26 494008 T 02/24/26 10002220 41514 OPERATING SUPPLIES 1,032.55 INVOICE: 203334136
VENDOR TOTALS .00 YTD INVOICED 20,433.55 YTD PAID 1,032.55 124228 LOS ANGELES TRUCK CENTERS, LLC.
116983 01/28/26 494009 T 02/24/26 60031030 42064 PARTS 12.26 INVOICE: XA220699520:01
117244 01/29/26 494009 T 02/24/26 60031030 42064 PARTS 17.20 INVOICE: XA220699527:01
VENDOR TOTALS .00 YTD INVOICED 2,171.19 YTD PAID 29.46
123448 VERA PAINTING
117270 11/20/25 494010 T 02/24/26 10001221 42024 BUILDING MAINTENANCE 1,200.00 INVOICE: 11202025
117273 12/11/25 494010 T 02/24/26 10001221 42024 BUILDING MAINTENANCE 1,200.00 INVOICE: 12112025
VENDOR TOTALS .00 YTD INVOICED 10,700.00 YTD PAID 2,400.00 118487 VU, THE PAUL
117205 02/04/26 494011 T 02/24/26 10001224 45184 TRAINING 280.83 INVOICE: 2102-119743
117209 02/04/26 494011 T 02/24/26 10002229 41514 OPERATING SUPPLIES 77.02 INVOICE: 2102-119744
117209 02/04/26 494011 T 02/24/26 10002215 41514 OPERATING SUPPLIES 190.93 INVOICE: 2102-119744
117211 02/04/26 494011 T 02/24/26 10002219 41514 OPERATING SUPPLIES 220.00 INVOICE: 2102-119745
117211 02/04/26 494011 T 02/24/26 10002219 41614 UNIFORMS & SAFETY EQUIPME 61.17 INVOICE: 2102-119745
117211 02/04/26 494011 T 02/24/26 10001206 41514 OPERATING SUPPLIES 160.22 INVOICE: 2102-119745
117211 02/04/26 494011 T 02/24/26 10001224 45184 TRAINING 35.46 INVOICE: 2102-119745
VENDOR TOTALS .00 YTD INVOICED 1,596.11 YTD PAID 1,025.63 110730 WALKER, JOYCELYN
117173 02/02/26 494012 T 02/24/26 10001224 45184 TRAINING 73.11 INVOICE: 01212026
VENDOR TOTALS .00 YTD INVOICED 2,616.62 YTD PAID 73.11
REPORT TOTALS 2,067,642.13
City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 02/17/2026 09:56
User: sdixon
Program ID: appdwarr
CHECK: C022426 TO FISCAL 2026/01 07/01/2025 TO 06/30/2026
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION
COUNT AMOUNT
TOTAL PRINTED CHECKS 16 1,335,922.42
TOTAL EFT TRANSFERS 133 731,719.71
** END OF REPORT - Generated by Shuntell Dixon **
ORIGINATING DEPARTMENT: FINANCE
The City Treasurer submits the following Housing Authority Warrants for your approval:
Date Start Ending Warrant type Total $
2/9/26 81427 81427 HOUSING 2,223.00
2/24/26 81428 81430 HOUSING 816.37
* Emergency Issue - for ratification only 3,039.37
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 FEBRUARY 24, 2026
Warrant #s
City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 02/04/2026 16:24
User: sdixon
Program ID: appdwarr
CHECK: H020926 TO FISCAL 2026/01 07/01/2025 TO 06/30/2026
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 100458 CARRANZA, PATSY JEAN
117075 02/01/26 81427 T 02/09/26 83440010 45904 HOUSING VOUCHER 2,223.00 INVOICE: 10675-1
VENDOR TOTALS 2,223.00 YTD INVOICED 17,784.00 YTD PAID 2,223.00 REPORT TOTALS 2,223.00
COUNT AMOUNT
TOTAL EFT TRANSFERS 1 2,223.00
** END OF REPORT - Generated by Shuntell Dixon **
City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 02/17/2026 10:13
User: sdixon
Program ID: appdwarr
CHECK: H022426 TO FISCAL 2026/01 07/01/2025 TO 06/30/2026
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 123058 ACCESS INFORMATION INTERMEDIATE HOLDINGS I, LLC. 117069 01/31/26 81430 T 02/24/26 81044010 41514 OPERATING SUPPLIES 113.75 INVOICE: 12029732
VENDOR TOTALS .00 YTD INVOICED 17,271.84 YTD PAID 113.75 112237 T-MOBILE
117416 01/21/26 81428 P 02/24/26 81044010 43054 TELEPHONE 262.18 INVOICE: JA982816099
117417 12/21/25 81428 P 02/24/26 81044010 43054 TELEPHONE 262.18 INVOICE: DC982816099
VENDOR TOTALS .00 YTD INVOICED 103,664.74 YTD PAID 524.36 113605 VERIZON WIRELESS
117065 12/23/25 81429 P 02/24/26 81044010 43054 TELEPHONE 89.13 INVOICE: DC470985090-4
117480 01/23/26 81429 P 02/24/26 81044010 43054 TELEPHONE 89.13 INVOICE: JA470985090-4
VENDOR TOTALS .00 YTD INVOICED 43,275.16 YTD PAID 178.26 REPORT TOTALS 816.37
COUNT AMOUNT
TOTAL PRINTED CHECKS 2 702.62
TOTAL EFT TRANSFERS 1 113.75
** END OF REPORT - Generated by Shuntell Dixon **
AGENDA ITEM NO. 6.
CITY OF HAWTHORNE
City Council
AGENDA BILL
For the meeting of 02/24/2026
Originating Department: City Clerk
City Manager: Department Head:
SUBJECT:
Approval of City Council meeting minutes for the regular meeting of February 10, 2026. Motion to approve minutes.
RECOMMENDED MOTION:
Staff recommends that the Council approve the regular City Council meeting minutes of February 10, 2026.
DISCUSSION:
The purpose of the minutes is to historically preserve the events of the City Council meetings. The minutes typically describe the event of the meeting and may include a list of attendees, a statement of the issues considered by the participants and related responses or decisions related to the issues. It is not a requirement that the minutes be a transcript, but instead a historical preservation/record of the actions, guidance, and directives provided in conducting the wishes and the business of the City of Hawthorne by the said policy-making body.
ECONOMIC DEVELOPMENT STRATEGIC PLAN:
None.
FISCAL IMPACT:
None.
NOTICING PROCEDURE:
72 Hours posted notice pursuant to the Ralph M. Brown Act.
ATTACHMENTS
M 02.10.26
D R A F T
MINUTES OF A REGULAR MEETING OF THE
CITY COUNCIL OF THE CITY OF HAWTHORNE,
CALIFORNIA HELD FEBRUARY 10, 2026
CALL TO ORDER
INVOCATION
Pastor Ruben Sanders led the evening's invocation.
PLEDGE OF ALLEGIANCE
The pledge of allegiance was led by Interim Police Chief Eric Lane.
ROLL CALL
Present: Mayor Alex Vargas; Mayor Pro Tem Alex Monteiro; Council Member Angie Reyes English; Council Member Faye Johnson
Absent: Council Member Katrina Manning
Also
Present:
City Manager Vontray Norris; City Attorney Robert Kim; City Clerk Dayna Williams-Hunter
PROCLAMATIONS/CERTIFICATES/PRESENTATIONS
1. Francisco Sanchez 25 Years of Service -- A. Monteiro
2. Restaurant Week Recap: "Hawthorne Eats" -- Administrative Services
PUBLIC COMMENTS
Pat Donaldson announced upcoming Chamber of Commerce Events.
Valerie, shared concerns regarding Hawthorne PD, ICE, and the brown act.
Rev, provided an update regarding the Cypher Spot.
Richard Harrison, expressed various concerns.
Rueben Sanchez, expressed concerns regarding the recent events in the community.
CITY CLERK'S CONSENT CALENDAR
3. The Finance Department, on the City Treasurer's behalf, requests approval of the warrants. Motion to approve the warrants.
RECOMMENDED MOTION:
Staff Recommends that the City Council approve the warrants issued for the period of 01/28/2026 to 02/10/2026 for a total of $2,981,900.61.
4. Approval of City Council meeting minutes for the regular City Council meetings of January 13, 2026 and January 27, 2026.
RECOMMENDED MOTION:
Staff recommends that the Council approve the regular City Council meetings of January 13, 2026 and January 27, 2026.
5. Approval of waiver of full readings of resolutions and ordinances on Tuesday, February 10, 2026's agenda. Motion to waive full readings.
RESOLUTIONS
6. RESOLUTION NO. 8579 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HAWTHORNE, CALIFORNIA, APPROVING THE 2020-21 DEVELOPMENT IMPACT FEE ANNUAL REPORT PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 66006(B).
RECOMMENDED MOTION:
Adopt Resolution No. 8579.
7. RESOLUTION NO. 8580 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HAWTHORNE, CALIFORNIA, APPROVING THE 2021-22 DEVELOPMENT IMPACT FEE ANNUAL REPORT PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 66006(B).
RECOMMENDED MOTION:
Adopt Resolution No. 8580.
8. RESOLUTION NO. 8581 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HAWTHORNE, CALIFORNIA, APPROVING THE 2022-23 DEVELOPMENT IMPACT FEE ANNUAL REPORT PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 66006(B).
RECOMMENDED MOTION:
Adopt Resolution No. 8581.
9. RESOLUTION NO. 8586 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HAWTHORNE, CALIFORNIA ESTABLISHING AN ON-STREET HANDICAP PARKING SPACE AT 4858 W 115TH ST.
RECOMMENDED MOTION:
Staff recommends that the City Council approve Resolution 8586.
Mayor Vargas moved, Mayor Pro Tem Monteiro seconded to approve Item 9 on the City Clerk's Consent Calendar.
AYES: Councilmembers Johnson, Reyes English, Mayor Pro Tem Monteiro, and Mayor Vargas NOES: None.
ABSENT: Councilmember Manning
10. RESOLUTION NO. 8587 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HAWTHORNE, CALIFORNIA
APPOINTING ERIC LANE AS THE POLICE CHIEF, APPROVING AN EMPLOYMENT AGREEMENT, AND
ADOPTING THE SALARY SCHEDULE FOR THE POSITION OF POLICE CHIEF RECOMMENDED MOTION:
Staff recommends that the City Council adopt Resolution No. 8587, appointing Eric Lane as the Police Chief, approving an employment Agreement, and adopting the salary schedule for the position of Police Chief.
City Attorney David Caceres provided a brief oral report.
Mayor Pro Tem Monteiro moved, Councilmember Reyes English seconded to approve Item 10 on the City Clerk's Consent Calendar.
AYES: Councilmembers Johnson, Reyes English, Mayor Pro Tem Monteiro, and Mayor Vargas NOES: None.
ABSENT: Councilmember Manning
11. RESOLUTION NO. 8588 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HAWTHORNE,
CALIFORNIA AMENDING THE CITY'S SALARY SCHEDULE TO INCLUDE THE SALARY OF THE CITY MANAGER AND POLICE MEDICAL SERVICES DIRECTOR.
RECOMMENDED MOTION:
Staff recommends that this City Council adopt Resolution 8588 amending the City's salary schedule to include the salaries of the City Manager and Police Medical Services Director.
Councilmember Reyes English moved, Mayor Vargas seconded to approve the City Clerk's Consent Calendar Items 3-8 and 11.
Councilmember Reyes English pulled item 9 for discussion, and Item 10 was voted on separately.
AYES: Councilmembers Johnson, Reyes English, Mayor Pro Tem Monteiro, and Mayor Vargas NOES: None.
ABSENT: Councilmember Manning
ORDINANCES
(None at this time)
BIDS: OPENINGS & RESULTS
(None at this time)
PUBLIC HEARINGS
(None at this time)
GENERAL MATTERS
(None at this time)
CITY MANAGER'S CONSENT CALENDAR
12. City of Hawthorne's Investment Report for the quarter ended December 31, 2025.
RECOMMENDED MOTION:
Staff recommends that the City Council receive, approve and file the City of Hawthorne's Investment Report for the quarter ended December 31, 2025 of FY 25-26.
13. Moneta Gardens Mobility Improvement Project (City Project #22-08) - Out to Bid.
RECOMMENDED MOTION:
Staff recommends that the City Council approve the Plans and Specifications and authorize the Director of Public Works to advertise for construction bids with a return date of March 24th, 2026.
14. Progress Payment #1 in the amount of $201,922.50 due to Jermax Construction Inc. of San Fernando, CA for Holly Park Restroom Renovation (Project #25-07).
RECOMMENDED MOTION:
Staff recommends that the City Council approve this Progress Payment #1 for Jermax Construction Inc. of San Fernando, CA.
15. Progress Payment #11 is in the amount of $657,728.27 is due to PCN3 Inc of Los Alamitos, CA for City of Hawthorne New Senior Center (Project #24-03).
RECOMMENDED MOTION:
Staff recommends that the City Council approve this Progress Payment #11 to PCN3 Inc of Los Alamitos, CA
16. Progress Payment #12 and Final Acceptance in the amount of $117,845.84 due to Klassic Engineering & Construction, Inc of Orange, CA for Hawthorne Housing Rehabilitation of City Owned Properties 2023 (Project #23-09).
RECOMMENDED MOTION:
Staff recommends that the City Council approve this Progress Payment #12 and Final Acceptance and all recommend Change Orders #360 through #384 to Klassic Engineering & Construction Inc of Orange, CA and release 5% retention amount 35 days after final payment has been approved.
Mayor Vargas moved, Mayor Pro Tem Monteiro seconded to approve Item 12-16 on the City Manager's Consent Calendar.
AYES: Councilmembers Johnson, Reyes English, Mayor Pro Tem Monteiro, and Mayor Vargas NOES: None.
ABSENT: Councilmember Manning
CITY ATTORNEY'S CONSENT CALENDAR
(None at this time)
DISCUSSION ITEMS
17. Hawthorne Municipal Airport News & Developments -- F. Johnson Councilmember Johnson pulled Item 17.
18. Options Regarding the City Council's Methods of Self-Enforcement and Censure -- F. Johnson Councilmember Johnson moved, Mayor Vargas seconded to declare that the behavior discussed above that took place on January 13th and 27th is unacceptable and needs to stop, moving for all councilmembers will abide by the City's code of conduct and municipal code, any deviation moving forward will be discussed with the City Attorney to determine the council's options to enforce City codes of conduct and Municipal codes
AYES: Councilmembers Johnson and Mayor Vargas
NOES: Councilmember Reyes English
ABSTAIN: Mayor Pro Tem Monteiro
ABSENT: Councilmember Manning
ELECTED OFFICIALS REPORTS
COUNCIL DIRECTIVES
Mayor Pro Tem Monteiro gave the directive to invite the restaurant participants of Hawthorne Restaurant week to present them with a certificate of appreciation.
Mayor Pro Tem Monteiro moved, Councilmember Johnson seconded to approve this directive.
AYES: Councilmembers Johnson, Reyes English, Mayor Pro Tem Monteiro, and Mayor Vargas NOES: None.
ABSENT: Councilmember Manning
Mayor Pro Tem Monteiro gave the directive for a proclamation for Former Commander Roger Mercy.
Mayor Pro Tem Monteiro moved, Councilmember Johnson seconded to approve this directive.
AYES: Councilmembers Johnson, Reyes English, Mayor Pro Tem Monteiro, and Mayor Vargas NOES: None.
ABSENT: Councilmember Manning
Councilmember Johnson gave the directive to make the Veteran of the year parking space a Veteran Parking space.
Councilmember Johnson moved, Mayor Pro Tem seconded to approve this directive.
AYES: Councilmembers Johnson, Reyes English, Mayor Pro Tem Monteiro, and Mayor Vargas NOES: None.
ABSENT: Councilmember Manning
CLOSED SESSION
(None at this time)
ADJOURNMENT
The evening's meeting was adjourned at 8:05pm.
CERTIFICATION
Passed and approved this 24th day of February 2025.
___________________________
Dayna Williams-Hunter
City Clerk
AGENDA ITEM NO. 8.
CITY OF HAWTHORNE
City Council
AGENDA BILL
For the meeting of 02/24/2026
Originating Department: Planning
City Manager: Department Head:
SUBJECT:
Resolution 8589 to Authorize the City of Hawthorne to Apply for the Prohousing Designation from the California Department of Housing and Community Development.
RECOMMENDED MOTION:
Adopt the resolution.
DISCUSSION:
The Prohousing Designation Program (PDP) seeks to reward jurisdictions for going above-and-beyond what is required by state housing laws in accelerating housing production. Jurisdictions demonstrating how they promote vibrant and inclusive communities through land use and zoning reforms, such as streamlining permit processes, reducing construction costs, and providing financial subsidies for housing development, are eligible to receive a Prohousing Designation and take advantage of its benefits. Staff believes the benefits to the City are potentially great while the obligations of the program are largely already being adhered to, and the remaining tasks are very minor. Details of the benefits and obligations of the PDP are described below.
What are the benefits of receiving a Prohousing Designation? Receiving a Prohousing Designation will earn the CIty additional scoring points in many state grant programs, including:
Affordable Housing & Sustainable Communities (AHSC)
Infill Infrastructure Grant (IIG)
Transformative Climate Communities (TCC)
Solutions for Congested Corridors (SCCP)
Local Partnership Program (LPP)
Transit and Intercity Rail Capital Program (TIRCP)
Sustainable Transportation Planning Grants (STPG)
Prohousing Incentive Program (PIP)
The Prohousing Incentive Program (PIP) is intended to increase participation in HCD's PDP by pairing the designation with an exclusive and impactful award grant. PIP is a state investment from the Building Homes and Jobs Trust Fund to create and conserve affordable housing. HCD awards PIP funds exclusively to eligible jurisdictions with Prohousing Designation, with additional bonus dollars available based on a jurisdiction's PDP application score.
PDP Obligations:
1. Compliant Housing Element: Jurisdictions must have a Housing Element that is approved and in compliance with state law. Hawthorne's Housing Element is compliant.
2. Active Implementation of Policies: Jurisdictions must demonstrate they are adopting policies that go "above and beyond" baseline state law to accelerate housing production. Pursuant to our Housing Element, we adopted qualifying policies in 2023.
3. Enacting Proposed Policies: If a jurisdiction receives the designation based on "proposed" policies (rather than already enacted ones), they are obligated to implement those policies within two years of submitting their application. We will have two years to enact the following additional policies, which will be identified in our application.
Including a one-stop permitting center in the refurbished existing City Hall building Revise the ADU Ordinance to comply with current state laws Creating a case manager to shepherd ADU applications through permitting Streamline ADU permit processing
Maintain a list of technical consultants
Formalize policy that allows ADUs to be built simultaneously with room additions
4. Ongoing Compliance: The jurisdiction must continue to comply with state housing laws, including the Permit Streamlining Act and CEQA, and must not pass local laws that hinder housing production. We intend to continue complying with state housing laws, including the Permit Streamlining Act and CEQA, and must not pass local laws that hinder housing production.
5. Reporting: Jurisdictions must submit Annual Progress Reports (APR). This is an existing requirement the City performs annually for both the Housing Element and the General Plan.
6. Fair Housing Requirements: Policies must be consistent with the obligation to Affirmatively Further Fair Housing (AFFH): These policies are built into our Housing Element and either enacted or followed already.
As of January 1, 2026, the following jurisdictions have earned a Prohousing Designation:
Adelanto, Alameda, Berkeley, Brea, Bishop, Campbell, Chula Vista, Crescent City, El Cerrito, Emeryville, Eureka, Fairfield, Hayward, Healdsburg, Indio, Lancaster, Long Beach, Los Altos, Los Angeles, Moreno Valley, Mountain View, Napa, Needles, Petaluma, Pinole, Rancho Cordova, Rancho Cucamonga, Redwood City, Richmond, Riverside, Rohnert Park, Roseville, Sacramento, Salinas, San Leandro, San Luis Obispo, Santa Ana, Santa Cruz, Santa Monica, Santa Rosa, San Francisco, South Lake Tahoe, South San Francisco, Stockton, Sunnyvale, Ukiah, Walnut Creek, West Hollywood, Los Angeles County, Moraga, Nevada County, Placer County, Sacramento County, San Luis Obispo County, San Diego County, Sonoma County, Tulare County, Tuolumne County, Windsor, Yuba County.
ECONOMIC DEVELOPMENT STRATEGIC PLAN:
Goal 2: Develop revenue-generating programs
Goal 4: Update Zoning Code for the 21st Century
FISCAL IMPACT:
Bonus points on state grant applications and the ability to apply for the PIP grant may result in additional grant funding to the City.
NOTICING PROCEDURE:
72 hours posted notice pursuant to the Ralph M. Brown Act.
ATTACHMENTS
Reso. No. 8589
RESOLUTION NO. 8589
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF HAWTHORNE, CALIFORNIA, AUTHORIZING
APPLICATION TO, AND PARTICIPATION IN, THE
PROHOUSING DESIGNATION PROGRAM
WHEREAS, Government Code section 65589.9 established the Prohousing Designation Program (PDP), which creates incentives for jurisdictions that are compliant with state housing element requirements and that have enacted pro-housing local policies;
WHEREAS, such jurisdictions will be designated “prohousing,” and, as such, will receive additional points or other preference during the scoring of their competitive applications for specified housing and infrastructure funding; WHEREAS, the California Department of Housing and Community Development (HCD) adopted regulations (Cal. Code Regs., tit. 25, § 6600 et seq.) to implement the PDP, as authorized by Government Code section 65589.9, subdivision (d); WHEREAS, on January 21, 2026, the Planning Commission of the City of Hawthorne held a duly noticed public information meeting concerning the Prohousing Designation;
WHEREAS, the City Council of the City of Hawthorne desires to submit an application for the Prohousing Designation.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HAWTHORNE RESOLVES AS FOLLOWS:
SECTION 1. Staff is hereby authorized and directed to submit a Prohousing Designation application to HCD.
SECTION 2. The City Council acknowledges and confirms that it is currently in compliance with applicable state housing law.
SECTION 3. The City Council acknowledges and confirms that it will continue to comply with applicable housing laws and to refrain from enacting laws, developing policies, or taking other local governmental actions that may or do inhibit or constrain housing production. Examples of such local laws, policies, and actions include moratoriums on development; local voter approval requirements related to housing production; downzoning; and unduly restrictive or onerous zoning regulations, development standards, or permit procedures. Applicant further acknowledges and confirms that the Prohousing Policies in its application comply with its duty to affirmatively further fair housing pursuant to Government Code sections 8899.50 and 65583. The City Council further acknowledges and confirms that the Hawthorne General Plan is in alignment with an adopted sustainable communities strategy pursuant to Public Resources Code section 21155- 21155.4. The City Council further acknowledges and confirms that its policies for the treatment of homeless encampments on public property comply with and will continue to comply with the Constitution and that it has enacted best practices in in Hawthorne that are consistent with the United States Interagency Council on Homelessness’ “7 Principles for Addressing Encampments” (June 17, 2022, update).
SECTION 4. If the Application is approved, the City Manager is hereby authorized and directed to enter into, execute, and deliver all documents required or deemed necessary or appropriate to participate in the Prohousing Designation Program, and all amendments thereto.
SECTION 5. The City Council acknowledges and agrees that it shall be subject to the application; the terms and conditions specified in the program documents; the program regulations; and any and all other applicable law.
SECTION 6. The City Manager is authorized to execute and deliver the application and the program documents on behalf of the City Council for participation in the Prohousing Designation Program.
SECTION 7. CITY CLERK. The City Clerk shall attest to the adoption of this ordinance and shall cause this ordinance to be posted in the manner required by law.
PASSED, APPROVED AND ADOPTED this 25th day of February, 2026.
ALEX VARGAS, Mayor
City of Hawthorne, California
ATTEST:
DAYNA WILLIAMS-HUNTER, City Clerk
City of Hawthorne, California
APPROVED AS TO FORM
DAVID CACERES, City Attorney
City of Hawthorne, California
AGENDA ITEM NO. 9.
CITY OF HAWTHORNE
City Council
AGENDA BILL
For the meeting of 02/24/2026
Originating Department: Public Works
City Manager: Department Head:
SUBJECT:
ORDINANCE NO. 2261 (FIRST READING) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HAWTHORNE, CALIFORNIA AMENDING CHAPTER 10.36 (STOPPING, STANDING AND PARKING) OF TITLE 10 (VEHICLES AND TRAFFIC) OF THE HAWTHORNE MUNICIPAL CODE TO ESTABLISH PARKING METER ZONES, OPERATIONS, FEES AND PROCEDURES. (Motion to Introduce.) RECOMMENDED MOTION:
Staff recommends that the City Council Introduce Ordinance No. 2261.
DISCUSSION:
The purpose of this ordinance is to regulate the use of public on-street and City-owned off-street parking in order to:
• Promote parking availability and encourage short-term parking turnover; • Improve traffic circulation and reduce vehicle congestion; and • Support the safe and efficient movement of persons and goods.
This ordinance establishes a comprehensive parking management program designed to ensure the effective operation, maintenance, and enforcement of public parking resources. Revenues generated pursuant to this chapter shall be deposited into a special fund, designated as the "Parking Fund," and used exclusively for:
Purchasing, leasing, installing, repairing, maintaining, operating pay stations, and related equipment, including associated administrative and enforcement activities; Acquiring, improving, operating, and maintaining on-street and off-street parking facilities; Regulating, controlling, inspecting, and enforcing parking and traffic on public streets.
Designated parking management areas may include time limits, permits, pay stations, mobile applications, or other management tools to effectively manage parking supply and occupancy. The City may monitor parking utilization and adjust management strategies as necessary to maintain an optimal occupancy rate of approximately 85%.
ECONOMIC DEVELOPMENT STRATEGIC PLAN:
The implementation of on-street paid parking is a key economic development strategy to support a vibrant, accessible, and financially sustainable commercial environment. As the city's business areas continue to grow, curb space has become increasingly congested, with long-term parkers occupying high-demand areas intended for short-term customer use. Paid parking helps manage this limited resource by increasing turnover, ensuring that visitors, shoppers, and diners can reliably find parking near local businesses. Improved access directly supports sales activity, strengthens local businesses, and enhances the overall customer experience.
FISCAL IMPACT:
None. The funds were allocated during the 12/09/2025 City Council meeting.
NOTICING PROCEDURE:
72 hours posted notice pursaunt to the Ralph M. Brown Act.
ATTACHMENTS
Ordinance 2261
1 ORDINANCE NO. 2261
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF HAWTHORNE, CALIFORNIA AMENDING CHAPTER
10.36 (STOPPING, STANDING AND PARKING) OF
TITLE 10 (VEHICLES AND TRAFFIC) OF THE
HAWTHORNE MUNICIPAL CODE TO ESTABLISH
PARKING METER ZONES, OPERATIONS, FEES AND
PROCEDURES.
WHEREAS, the City of Hawthorne is authorized pursuant to California Vehicle Code Section 22508(a) to regulate parking on public streets and in City-owned parking facilities, including the establishment of paid parking zones; and WHEREAS, areas of the City experience high parking demand, long-term vehicle storage, and reduced parking turnover, which negatively impact access, circulation, and public safety; and
WHEREAS, the City desires to implement paid on-street and off-street parking as a regulatory measure to promote parking availability, improve traffic circulation, and recover the reasonable costs associated with parking management, maintenance, and enforcement; and
WHEREAS, Chapter 10.36 of the Hawthorne Municipal Code governs stopping, standing, and parking regulations, and it is appropriate to codify paid parking provisions within that Chapter to ensure consistent enforcement and administration; and WHEREAS, the City desires to establish designated paid parking zones, fee structures, permit programs, enforcement provisions, and a dedicated parking fund to support transportation-related improvements.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF
HAWTHORNE DOES ORDAIN AS FOLLOWS:
SECTION 1. The City Council of the City of Hawthorne hereby incorporates by reference all the recitals herein.
SECTION 2. Amendment to Hawthorne Municipal Code. Chapter 10.36 (Stopping, Standing and Parking) of Title 10 (Vehicles and Traffic) of the Hawthorne Municipal Code is hereby amended to add Sections 10.36.200 through 10.36.270 to read as follows:
2 I. 10.36.200 Paid Parking Zones – Authority.
A. The City Manager, or designee, shall cause paid on-street parking zones to be implemented. They are responsible for the installation and maintenance of all related parking equipment, including but not limited to pay stations and meter zones.
B. As stated in Section 10.36.015, the same police, city officials, or authorized contractors may issue parking citations. Citations must be issued in compliance with the referenced section. Contractors issuing citations shall:
1. Act solely as agents of the City;
2. Be subject to City oversight, training requirements, and performance standards;
3. Comply with all citation issuance, notice, appeal, and adjudication procedures set forth in Chapter 10.36 and applicable state law.
II. 10.36.210 Definitions.
For purposes of this Article the following definitions shall apply:
“Paid On-Street Parking Zone” means any public street or corridor designated by the City Council where on-street parking requires payment. “Paid Off-Street Parking Zone” means any public parking lot designated by the City Council where off-street parking requires payment. “Pay Station” means a City-approved device used to collect parking fees. “Enforcement Hours” means the hours during which paid parking is in effect. “Mobile Payment Application” – A City-approved app or online portal for payment of parking fees and permits.
III. 10.36.220 Designated Paid On-Street and Off-Street Parking Zones.
A. The City Council, after recommendation by the City Manager, or designee, is authorized to determine and establish by ordinance streets, portions of streets, or city-owned parking lot along which paid parking will reduce parking congestion, improve circulation, maximize parking utilization, and encourage parking turnover.
B. The maintenance superintendent or designated contractor shall mark and sign such streets, portions thereof, or parking facilities, indicating the areas for paid parking.
3 C. When signs or markings are in place indicating paid parking, no person shall park without:
1. Paying the applicable fee via pay station or mobile application;
2. Displaying a valid City-issued permit or exemption; or
3. Obtaining a virtual valid City-issued permit.
D. Paid parking shall be implemented on the following corridors and street segments:
1. Hawthorne Boulevard, from El Segundo Boulevard to Rosecrans Avenue, including curbside and median parking;
2. Jack Northrop Avenue, from Prairie Avenue to Crenshaw Boulevard;
3. 129th Street Lot: Parking lot west of Hawthorne Boulevard, between 129th Street and 130th Street. Directly east of 4443 W 130th Street.
4. 130th Street Lot: Northern part of the parking lot directly east of 4442 W 130th Street, south of W 130th Street, and west of Hawthorne Boulevard. The southern border of the paid parking in this lot are the median island placed approximately halfway through the lot; and
E. Jim Thorpe Park Parking Lot: Corner of Prairie Avenue and 139th Street A detailed map of designated zones shall be maintained by the Department of Public Works and made available to the public.
IV. 10.36.230 Fee Structure
A. Parking fees in paid zones shall be established as follows:
4 Parking Area Time Limit Fee Hours of Enforcement
Hawthorne
Boulevard –
Curbside
Parking
2-Hour
Maximum
$1.00/hour 24 hours a day, 7 days a week
Hawthorne
Boulevard –
Median
Parking
No Overnight
Parking
(Except
Permitted
Vehicles)
0 – 1 hour: Free
1 – 5 hours: $0.75/hour
5+ hours (Daily
Maximum): $3/day
Monthly Permit:
$55/month
24 hours a day, 7 days a week
Jack
Northrop
Avenue
No Time
Limit
0 – 7 hours: $1/hour
7+ hours (Daily
Maximum): $7/day
Monthly Permit:
$100/month
24 hours a day, 7 days a week
129th Street
Lot
No Overnight
Parking
(Except
Existing
Permitted
Vehicles)
0 – 1 hour: Free
1 – 5 hours: $0.75/hour
5+ hours (Daily
Maximum): $3/day
Monthly Permit:
$55/month
24 hours a day, 7 days a week
130th Street
Lot
No Overnight
Parking
(Except
Existing
Permitted
Vehicles)
0 – 1 hour: Free
1 – 5 hours: $0.75/hour
5+ hours (Daily
Maximum): $3/day
Monthly Permit:
$55/month
24 hours a day, 7 days a week
Jim Thorpe
Lot
No Overnight
Parking
(Except
Permitted
Vehicles)
0 – 1 hour: Free
1 – 5 hours: $0.75/hour
5+ hours (Daily
Maximum): $3/day
Monthly Permit:
$55/month
24 hours a day, 7 days a week
B. Adjustments.
1. During a fiscal year, the City Manager, or designee, may adjust on-street or offstreet hourly or daily parking rates up or down by a maximum $1.00 per hour based on average occupancy rates to achieve a target occupancy rate of 85 percent. Any increase over $1.00 per hour in a fiscal year shall require City Council approval.
5 2. During a fiscal year, the City Manager, or designee, may adjust monthly permit parking rates up or down by the associated year's Consumer Price Index (CPI) inflation rate. Any increase over this amount in a fiscal year shall require City Council approval.
i. All monthly permits will be virtual using the vehicle’s license plate as the credential.
C. Payment method.
1. Parking fees (hourly or daily) may be paid via the City’s mobile parking payment application using credit/debit card, Apple Pay, or Google Pay or via the pay station located in the parking lot or on the street using coins, credit/debit card, Apple Pay, or Google Pay.
2. Monthly permits may be purchased via the City’s mobile parking payment application using credit/debit card, Apple Pay, or Google Pay or via the city’s parking permit portal: www.XXX.com using credit/debit card, Apple Pay, Google Pay or PayPal.
V. 10.36.240 Permits and Exemptions.
A. The Department of Public Works, Police Department and/or designated contractor is authorized to issue parking permits for residents, businesses, and other approved parties within paid zones. These parties will not be required to pay the on-street or off-street hourly or daily parking fees. Exemptions shall apply to the following:
1. Vehicles displaying valid Disabled Person Placards or Plates
2. City-authorized service and emergency vehicles
3. Vehicles registered for valid Parking Permits
B. Duration of Monthly Permits.
1. Monthly permits shall be valid for one (1) month from the date of issuance and may be renewed monthly. A permit is non-transferable and may only be used by the individual to whom it is issued.
2. The monthly parking permit does not exempt the holder from other applicable parking restrictions, including but not limited to posted time limits, street sweeping schedules, and safety regulations.
6 VI. 10.36.250 Revenue Use.
All parking fee revenues shall be directed toward maintenance of transportation systems, improvement of parking infrastructure, enforcement costs, and other related City initiatives.
VII. 10.36.260 Parking Penalties.
A. If a parking fine is not paid within 21 days of issuance, the full base fine shall be due.
B. If unpaid 22 to 42 days after issuance, an additional $25 penalty applies.
C. If unpaid 43 to 63 days after issuance, an additional $30 penalty applies.
D. If the City incurs costs of collection, such costs shall be added to the total amount due. Costs of collection may include administrative, mailing, and contractor fees reasonably incurred by the City.
E. Total penalties and costs for a single violation shall not exceed three times the base fine amount.
SECTION 3. Severability. If any section, subsection, sentence, clause, or phrase of this resolution is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of this Ordinance.
SECTION 4. City Clerk. The City Clerk shall attest to the adoption of this Ordinance and shall cause this Ordinance to be posted in the manner required by law.
SECTION 5. Effective Date. This Ordinance shall take effect thirty (30) days after passage thereof.
SECTION 6. Publication. The City Clerk is directed to forward a copy of Ordinance No. 2259 to General Code, LLC, 781 Elmgrove Road, Rochester, NY 14824.
7 PASSED, APPROVED AND ADOPTED this 10th day of March, 2026. _____________________________
ALEX VARGAS, Mayor
City of Hawthorne, California
ATTEST:
______________________________________
DAYNA WILLIAMS-HUNTER, City Clerk
City of Hawthorne, California
APPROVED AS TO FORM:
______________________________
DAVID CACERES, City Attorney
City of Hawthorne, California
AGENDA ITEM NO. 10.
CITY OF HAWTHORNE
City Council
AGENDA BILL
For the meeting of 02/24/2026
Originating Department: Finance
City Manager: Department Head:
SUBJECT:
RETIREE HEALTHCARE PLAN June 30, 2025 GASBS 75 Disclosure Report RECOMMENDED MOTION:
Staff recommends that the City Council accept and file the OPEB Disclosure Report for Fiscal Year ending June 30, 2025, and approve the 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 Rael & Letson Actuaries to prepare an actuarial valuation of their post-retirement benefits program as of June 30, 2024. In accordance with GASB, this valuation was used to provide the attached June 30, 2025, 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. Rael & Letson 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, 2025, financial statement.
Key results:
Actuarial accrued liability totaled $105,113,362, which represents an increase of $801 thousand from the previous year of $104,312,362. Considering the OPEB trust Fiduciary Net Position, the Net Liability total decreases to $99,916,552, which is a decrease in liability of $5.2 million.
Annual Benefit Payments for 2023/2024 $3,211,093 and $3,610,395 for 2024-2025.
Assumption change:
Increase in the discount rate from 4.27% to 4.53% reflects the additional investment earning expected now that the City is partially pre-funding the benefit in a trust. The higher the discount rate, the lower the liability.
All assumptions are based on a partially pre-funded status at the measurement period being July 2023 through June 2024.
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, and $4,850,000 in January 2025.
Recommendation:
In order to pay down the unfunded actuarial liability over a 17-year period, the City should contribute $4.7 million to the OPEB trust in fiscal year 2025-26. With Council approval, this contribution will be made in February 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, 2025, GASBS 75 Disclosure report
OPEB 23-06-30 Valuation Report
2024/25 GASB Statement 75 Disclosure
As of June 30, 2024 Measurement Date
Based on June 30, 2023 Actuarial Valuation
City of Hawthorne
September 23, 2025
Rael & Letson
September 23, 2025
June 30, 2023 participant census and actuarial valuation Information provided by the City, including benefits paid during 2024/25 June 30, 2024 trust assets.
Respectfully submitted,
Rael & Letson
Doug Pryor, ASA, EA, MAAA Kateryna Pryor, ASA, MAAA
Actuarial Certification
This report is based on our understanding of GASB 75. We believe the assumptions used herein are reasonable and comply with GASB 75. Future measurements may differ significantly due to factors including: plan experience, assumption changes, the plan’s natural/expected continuation, and benefit changes. An analysis of the impact of these changes was not prepared.
Journal entries provided in our report are prepared in accordance with CCMA White Paper issued on February 2018 and not a part of actuarial calculations, so the certification does not apply to the journal entries.
To the best of our knowledge, this report is complete and accurate and, in our opinion, presents the information necessary to comply with GASB 75. As members of Society of Actuaries meeting the Qualifications Standards of the American Academy of Actuaries, we render the actuarial opinion contained This report uses a June 30, 2024 measurement date, with calculations based on the following:
We are pleased to present the 2024/25 Governmental Accounting Standards Board Statement No. 75 (GASB 75) disclosure information for the City of Hawthorne.
The purpose of the report is to fulfill the City’s GASB 75 reporting requirements. It may not be appropriate for other uses. Measurements of liabilities and other relevant information for purposes other than GASB 75 compliance may differ significantly from results in this report.
We reviewed this information for reasonableness but did not audit. We believe the information provided to us is appropriate for use in this report, but we are not responsible for its accuracy.
Rael & Letson
Page
Note Disclosures
1 2
3 4
5 7
8 Required Supplementary Information
9 10
11 13
Journal Entries............................................................................................................................................................................................
Backup Calculations..................................................................................................................................................................................
Table of Contents
Changes Since Prior Measurement Date .....................................................................................................................................................
Long-Term Expected Rate of Return.............................................................................................................................................................
Changes in the Net OPEB Liability and Related Ratios...................................................................................................................................
Schedule of Contributions..........................................................................................................................................................................
Dates and Participant Counts......................................................................................................................................................................
Changes in Net OPEB Liability.....................................................................................................................................................................
Sensitivity of Net OPEB Liability to Changes in Assumptions.........................................................................................................................
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB...............................................................................................
Actuarial Methods and Assumptions for Total OPEB Liability.........................................................................................................................
Rael & Letson
Dates
Valuation Date June 30, 2023
Measurement Date June 30, 2024
Measurement Period July 1, 2023 to June 30, 2024
Participant Counts
Active employees 289
Inactive employees or beneficiaries currently receiving benefits 259 Inactive employees entitled to, but not receiving benefits 56 604
Note Disclosures
Dates and Participant Counts
In compliance with GASB 75, this report uses the following timeframes for reporting purposes:
As of the June 30, 2024 measurment date, the following current and former employees were covered by the Plan:
2024/25 GASB Statement 75 Disclosure
◥
City of Hawthorne 1
Rael & Letson
Balance at June 30, 2024
(Measurement date June 30, 2023)
Changes recognized for the measurement period
Service cost
Interest
Changes of Plan benefits
Difference between expected and actual experience
Changes of assumptions
Contributions - employer 1
Contributions - employee
(Benefit Payments)
(Administrative expenses)
Net investment income 2
Net changes
Balance at June 30, 2025
(Measurement date June 30, 2024)
1 2
Note Disclosures
Changes in Net OPEB Liability
The changes in the Total OPEB Liability , Fiduciary Net Position, and Net OPEB Liability are as follows:
Contributions consist of: $1,000,000 trust contributions, $2,769,064 benefit payments made outside of the Trust, $442,029 implicit subsidy, and $9,652 administrative fees.
Expected investment return was $224,726, resulting in $288,551 invesment gain. 1,503,265 (702,522)
105,113,105 5,196,553 99,916,552
-
800,743
-
-
(3,211,093)
513,277 (513,277)
(19,664) 19,664
(3,211,093)
-
4,220,745
-
-
(3,679,915)
- -
(3,679,915)
-
-
-
-
-
(4,220,745)
-
-
-
Total OPEB Liability Net OPEB Liability
4,520,973 4,520,973
$ 100,619,074
3,170,778
$ 104,312,362
3,170,778
Fiduciary Net Position
$ 3,693,288
2024/25 GASB Statement 75 Disclosure ◥ City of Hawthorne 2 Rael & Letson
Discount Rate
Health Care Cost Trend Rates
Net OPEB Liability $ 85,137,896 $ 99,916,552 $ 118,608,423 1% Decrease Current Trend Rates 1% Increase
The following presents the City’s Net OPEB Liability at the current healthcare trend rates , as well as what it would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1-percentage-point higher than the current healthcare cost trend rates.
Net OPEB Liability $ 116,875,184 $ 99,916,552 $ 86,348,785 Current Discount Rate
(4.53%)
1% Decrease
(3.53%)
1% Increase
(5.53%)
The following presents the City’s Net OPEB Liability at the current discount rate of 4.53%, as well as what it would be if it were calculated using a discount rate that is 1-percentage-point lower or 1-percentage-point higher than the current rate.
Note Disclosures
Sensitivity of Net OPEB Liability to Changes in Assumptions 2024/25 GASB Statement 75 Disclosure ◥ City of Hawthorne 3 Rael & Letson
OPEB Expense
Deferred Outflows/Inflows of Resources
OPEB contributions subsequent to measurement date*
Difference between expected and actual experience
Changes of assumptions
*
-
Consists of $4,850,000 trust contributions, $3,019,395 cash benefit payments made outside of the Trust, $591,000 implicit subsidy, $8,024 administrative fees. 2026
2027
2028
2029
thereafter
total
(7,501,035)
(4,159,871)
(691,023)
Deferred
Outflows
Deferred
Inflows
2030
$ (6,613,631)
(507,575)
Net difference between projected and actual earnings on OPEB trust investments
Year Ending June 30 Recognition
Recognition of deferred resources in future OPEB expense:
Total
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB Note Disclosures
(19,473,135)
2,539,115
-
$ 15,378,460
(4,072,438)
(22,035,598)
(275,140)
$ (26,383,176)
$ 8,468,419 $ -
4,370,926
June 30, 2025
For the year ended June 30, 2025, the City recognized OPEB Expense of $3,226,609.
On June 30, 2025, the City reported deferred outflows and inflows of resources related to OPEB from the following sources of changes in Net OPEB Liability:
2024/25 GASB Statement 75 Disclosure ◥ City of Hawthorne 4 Rael & Letson
Long-Term Expected Rate of Return on Assets 5.75% at June 30, 2024 Aggregate: 2.75% annually
Merit: CalPERS 2000-2019 Experience Study
Valuation date
Funding policy
Discount rate
Salary increase
The June 30, 2024 total OPEB liability was determined based on the following significant actuarial assumptions:
Note Disclosures
Actuarial Methods and Assumptions for Total OPEB Liability June 30, 2023 (rolled forward to June 30, 2024 measurment date) City makes ad-hoc contibutions to the trust and makes benefit payments outside of the trust
4.27% at June 30, 2023
City contributions are not projected to be sufficient to pay all benefits from plan assets Municipal Bond Rate 3.93% at June 30, 2024
3.65% as of June 30, 2023
Bond Buyer 20-Bond GO Index
Inflation 2.50% annually
4.53% at June 30, 2024
2024/25 GASB Statement 75 Disclosure ◥ City of Hawthorne 5 Rael & Letson
Retirees: 100% if covered, 5% re-elect at 65 if waived
Note Disclosures
Actuarial Methods and Assumptions for Total OPEB Liability (continued)
Mortality, retirement, disabiltiy, and termination CalPERS 2000-2019 Experience Study Mortality improvement Mortality projected fully generational with Scale MP-2021 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 for Future Retirees Actives: 95% 2024/25 GASB Statement 75 Disclosure ◥ City of Hawthorne 6 Rael & Letson
Changes of Assumptions
Changes of Plan benefits
None
Note Disclosures
Changes Since Prior Measurement Date
Discount rate was updated based on crossover test
2024/25 GASB Statement 75 Disclosure ◥ City of Hawthorne 7 Rael & Letson
Global Equity
Fixed Income
Cash
Assumed Long-Term Rate of Inflation
Expected long-term rate of return
2.50%
5.75%
5% -0.50%
Target
Asset Allocation
Expected Real
Rate of Return
60% 4.56%
35% 0.78%
Note Disclosures
Long-Term Expected Rate of Return
The City has an OPEB trust with PARS under its Balanced investment allocation. 2024/25 GASB Statement 75 Disclosure ◥ City of Hawthorne 8 Rael & Letson
Changes in Total OPEB Liability
Service cost
Interest
Changes of Plan benefits
Difference between expected and actual experience
Changes of assumptions
(Benefit Payments)
Net change in total OPEB liability
Total OPEB liability - beginning
Total OPEB liability - ending
Changes in Plan Fiduciary Net Position
Contributions - employer
Contributions - employee
(Benefit Payments)
(Administrative expenses)
Net investment income
Net change in Plan fiduciary net position
Plan fiduciary net position - beginning
Plan fiduciary net position - ending
Related Ratios
City's net OPEB liability - ending
Plan fiduciary net position as a percentage of the total OPEB liability Covered-employee payroll
City's net OPEB liability as a percentage of covered-employee payroll *2023/24 measurement period.
1,503,265
3,693,288
5,196,553
$ 99,916,552
4.9%
32,583,616
306.6%
-
(3,679,915)
(3,211,093)
(19,664)
513,277
105,113,105
$ 4,220,745
104,312,362
Required Supplementary Information
Changes in the Net OPEB Liability and Related Ratios
$ 3,170,778
800,743
-
4,520,973
-
(3,211,093)
2024/25*
2024/25 GASB Statement 75 Disclosure ◥ City of Hawthorne 9 Rael & Letson
Actuarially Determined Contribution
Actuarially Determined Contribution
Contributions in relation to the Actuarially Determined Contribution Contribution deficiency / (excess)
Covered-employee payroll
Contributions as a percentage of covered-employee payroll Actuarial Assumptions
Actuarial cost method
Amortization method
Remaining amortization period
Asset valuation method
Discount Rate
Inflation
Medical Trend
Mortality
Mortality Improvement
Medicare (Non-Kaiser): 6.90% 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 CalPERS 2000-2019 Experience Study
Mortality projected fully generational with Scale MP-2021 Market value of assets
5.75% annually
2.50% annually
Non-Medicare: 7.90% for 2026, decreasing to an ultimate rate of 3.45% in 2076 Schedule of Contributions
Required Supplementary Information
2024/25
$ 8,583,000
8,468,419
Entry Age Normal
Level % of pay
17-year fixed period for 2024/25
114,581
36,480,635
23.2%
The following actuarial methods and assumptions from the June 30, 2023 actuarial valuation were used to determine the 2024/25 Actuarially Determined Contribution:
2024/25 GASB Statement 75 Disclosure ◥ City of Hawthorne 10 Rael & Letson
Reclassify 2023/24 Contributions
Net OPEB Liability / (Asset)
Deferred outflows - 2023/24 Contributions
Reclassify 2024/25 Contributions
Deferred outflows - 2024/25 Contributions
Implicit subsidy (active health care premiums)
OPEB Expense
OPEB Expense
Deferred outflows of resources*
Deferred inflows of resources*
Net OPEB Liability / (Asset)
OPEB Expense / (Income)
Total
* Please refer to page 11 if the City needs to track deferrals by source.
Journal Entries
(7,877,419)
$ 8,468,419
-
Debit
$ 4,220,745
- (4,220,745)
- (591,000)
Credit
$ -
$ -
$ - $ (6,668,890)
$ 10,403,187 $ (10,403,187)
7,176,578 (216,074)
-
3,226,609
(3,518,223)
-
2024/25 GASB Statement 75 Disclosure ◥ City of Hawthorne 11 Rael & Letson
Difference between expected and
actual experience
Changes of assumptions
Net differences between expected and
actual earnings on plan investments
Total
Debit Credit
- (5,518,646)
Deferred Outflows
Debit
This page provides information for agencies that keep track of deferrals by source. If the City determines that it needs to use this page, then it should ignore the deferred outflows/inflows of resources shown on page 10.
Credit
Deferred Inflows
(216,074)
$ -
-
$ (216,074)
Journal Entries
$ -
$ - $ (6,668,890) $ 7,176,578
$ (1,150,244) $ 3,171,254
4,005,324
- - -
Break Down of Deferrals by Source
2024/25 GASB Statement 75 Disclosure ◥ City of Hawthorne 12 Rael & Letson
Cash benefit payments
Implicity subsidy benefit payments
Total benefit payments
Administrative expenses (other than trust)
Trust reimbursements
Payments made outside of trust
Trust contributions
Total employer contributions
Backup Calculations
Employer Contributions
3,618,419
4,850,000
$ 8,468,419
$ 2,769,064
9,652
3,610,395
-
3,220,745
1,000,000
$ 4,220,745
-
8,024
Measurement Period
(July 1, 2023 to June 30, 2024)
442,029
3,211,093
Measurement Date to
Fiscal Year End
(July 1, 2024 to June 30, 2025)
$ 3,019,395
591,000
2024/25 GASB Statement 75 Disclosure ◥ City of Hawthorne 13 Rael & Letson
Experience
Fiscal Year 2024/25
End Loss/(Gain) Recognition Period Recognition Deferred Outflows Deferred Inflows 2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Totals:
Original June 30, 2025 Deferred Balances
Backup Calculations
Deferral Recognition Schedules
-
-
$ - $ -
-
$ -
-
Difference between expected and actual experience
-
- - -
-
(8,450,705)
-
-
$ -
-
-
5.60 -
-
-
-
-
-
-
5.40 -
-
6,671,414
-
5.80 -
-
-
-
- -
-
-
(4,072,438)
-
-
- -
-
-
-
4,370,926
(14,253,534)
- -
$ (4,072,438)
-
1,150,244
-
$ (2,021,010) $ 4,370,926
-
-
(625,980)
-
(2,545,274)
2024/25 GASB Statement 75 Disclosure ◥ City of Hawthorne 14 Rael & Letson
Assumptions
Original June 30, 2025 Deferred Balances
Fiscal Year 2024/25
End Loss/(Gain) Recognition Period Recognition Deferred Outflows Deferred Inflows 2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Totals:
Changes of assumptions
Backup Calculations
Deferral Recognition Schedules
- - - - -
$ - - $ - $ - $ -
- - - - -
- - - - -
- - - - -
- - - - -
5,945,521 5.40 440,411 - -
27,930,290 5.50 5,078,235 2,539,115 -
(8,870,441) 5.60 (1,584,007) - (2,534,413)
(25,044,228) 5.80 (4,317,970) - (12,090,318)
(6,663,008) 5.80 (1,148,794) - (4,365,420)
(3,679,915) 5.80 (634,468) - (3,045,447)
$ (2,166,593) $ 2,539,115 $ (22,035,598)
2024/25 GASB Statement 75 Disclosure ◥ City of Hawthorne 15 Rael & Letson
Investments
Original June 30, 2025 Deferred Balances
Fiscal Year 2024/25
End Loss/(Gain) Recognition Period Recognition Deferred Outflows Deferred Inflows 2020
2021
2022
2023
2024
2025
Totals:
Net Total:
-
-
- 5.00 - - -
- 5.00 - -
- (44,299)
5.00 - - -
Backup Calculations
Deferral Recognition Schedules
Net difference between projected and actual earnings on OPEB trust investments $ - 5.00 $ - $ - $ -
- (230,841)
$ - $ (275,140)
$ (72,477) - (275,140)
(73,833) 5.00 (14,767)
(288,551) 5.00 (57,710)
2024/25 GASB Statement 75 Disclosure ◥ City of Hawthorne 16 Rael & Letson
Service cost
Interest
(Expected Investment Return)
Employee contributions
Administrative expense
Changes of benefits
Recognition of deferrals
Experience
Assumptions
Investment return
OPEB expense/(income)
*2023/24 measurement period.
$ 3,226,609
19,664
-
(2,021,010)
(2,166,593)
(72,477)
Backup Calculations
OPEB Expense Detail
2024/25*
$ 3,170,778
4,520,973
(224,726)
-
2024/25 GASB Statement 75 Disclosure ◥ City of Hawthorne 17 Rael & Letson
Balances Prior and Current Fiscal Year
Total OPEB Liaibility
Fiduciary Net Position
Net OPEB Liability/(Asset)
Deferred Inflows
Expense Reconcilation
Deferred Outflows (13,578,931) (6,910,041)
33,343,680 26,383,176
$ 104,312,362 $ 105,113,105
3,693,288 5,196,553
100,619,074 99,916,552
Backup Calculations
Balance Equation
Fiscal Year
June 30, 2024 June 30, 2025
Balance Sheet $ 120,383,823 $ 119,389,687
(4,220,745)
$ 120,383,823
3,226,609
2024/25
Balance Sheet (beginning of year)
OPEB Expense/(Income)
(Contributions)
Balance Sheet (end of year) $ 119,389,687
2024/25 GASB Statement 75 Disclosure ◥ City of Hawthorne 18 Rael & Letson
2024/25 GASB Statement 75 Disclosure ◥ City of Hawthorne 19
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. 11.
CITY OF HAWTHORNE
City Council
AGENDA BILL
For the meeting of 02/24/2026
Originating Department: Finance
City Manager: Department Head:
SUBJECT:
Annual Comprehensive Financial Report of the City of Hawthorne for the Fiscal Year Ended June 30, 2025.
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, 2025.
DISCUSSION:
The General Fund actual revenues exceeded budgeted revenues by approximately $5.9 million in Fiscal Year 2024-2025. The excess revenue was primarily due to an increase in tax and special assessments revenues and operating transfers in. This resulted in an increase of 5.2% in General Fund revenues compared with the prior fiscal year 2023-2024. Revenue projections for FY 2024-2025 were based on conservative estimates to account for modest economic growth. The General Fund expenditures for Fiscal Year 2024-2025 were under budgeted expenditures by approximately $8.2 million. The decrease in expenditures was primarily due to a decrease in public safety expenditures; actual expenditures for most departments were below budgeted amounts.
The programs with lower than anticipated expenditure amounts included: City Manager of $332 thousand, City Attorney of $1 thousand, Administrative Services of $754 thousand, Public Safety of $4.2 million, Planning of $499 thousand, Building & Safety of $129 thousand, Parks & Recreation of $559 thousand, and Public Works of $1.8 million.
The City's unrestricted fund balance for the General Fund increased from $93.98 million at year end June 30, 2023, to $109.36 million at year end June 30, 2024. The City's unrestricted fund balance at fiscal year end June 30, 2025, for the General Fund was $114,610,688. This is approximately 117.32% of the total General Fund Expenditures. The required fund Balance for Fiscal Year 2024-25 was $27.4 million, or 3 months (25%) of budgeted expenditures.
T
heCity'stotal long-term liabilities increasedby$26millionduringthecurrentfiscal year, primarilydueto the increase inthebond liability inthefiscal year.
The City's operational liabilities, which include compensated absences, OPEB, pension-related debt and claims and judgments, total $142 million. This is a decrease of $5 million primarily in Net Pension Liability. Debt service payments for Fiscal Year 2024-25 totaled $5,350,850 as follows:
Debt Service Payment Amount
SBRPCA Direct Placement 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 $702,522 thousand to a total of $99,916,552. The City's OPEB liability decreased due to higher discount rate for the actuarial valuation. The increase in the discount rate from 4.27% to 4.53% reflects the additional investment earnings expected now that the City is partially pre-funding the benefit in a trust. The higher the discount rate, the lower the liability. 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 $9.35 million in contributions has been made to the trust since it was established.
The City's net position, at June 30, 2025 totaled $103.4 million. The total net position increased from the prior fiscal year 2023-24 by $28,861,646 primarily due to the decrease in public safety expenditures.
The following contributing items have impacted the overall net position:
· Taxes increased by $4 million
· Use of money & property increased by $1.8 million
· General Government expenditures decreased by $1 million · Public Safety expenditures decreased by $4.2 million
· Community Development expenditures decreased by $628 thousand · Parks & Recreation expenditures decreased by $559 thousand · Public works expenditures decreased by $$1.8 million
The following table reflects the change in net position from fiscal year 2023-24 to fiscal year 2024-25.
ECONOMIC DEVELOPMENT STRATEGIC PLAN:
.
FISCAL IMPACT:
None.
NOTICING PROCEDURE:
72 hours posted notice pursuant to the Ralph M. Brown Act.
ATTACHMENTS
ACFR 24-25
City of Hawthorne,
California
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
Prepared by the Hawthorne Finance Department
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City of Hawthorne,
California
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
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, 2025
TABLE OF CONTENTS
INTRODUCTORY SECTION:
Letter of Transmittal .............................................................................................................. i Organizational Chart ........................................................................................................... ix List of Principal Officials ....................................................................................................... x GFOA Certificate of Achievement for Excellence in Financial Reporting ............................. xi 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 Function
General Fund .......................................................................................................... 96 Hawthorne Housing Authority Special Revenue Fund ............................................. 98 American Rescue Plan Act Fund ............................................................................ 99 CA Parks & Recreation Community Center Special Revenue Fund ....................... 100 City of Hawthorne
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2025
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 ..................................................... 109 Supplementary Information:
Non-Major Governmental Funds:
Combining Balance Sheet .................................................................................... 116 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ................................................................................................ 129 Schedule of Revenues, Expenditures, and Changes Fund Balance – Budget and Actual
Park Improvements Capital Projects Fund – Major Fund ................................. 142 Civic Center Lease Bonds Fund – Major Fund ................................................. 143 Street Lighting Special Revenue Fund ............................................................ 144 Gas Tax Special Revenue Fund ..................................................................... 145 Street Special Revenue Fund ......................................................................... 146 Asset Forfeiture Special Revenue Fund .......................................................... 147 COPS Special Revenue Fund ......................................................................... 148 California Office of Traffic Safety Special Revenue Fund ................................ 149 Local Law Enforcement Block Grant Special Revenue Fund .......................... 150 MTA Measure R Special Revenue Fund ......................................................... 151 Proposition A Special Revenue Fund .............................................................. 152 MTA Measure M Special Revenue Fund ......................................................... 153 Proposition C Special Revenue Fund .............................................................. 154 Air Quality Special Revenue Fund .................................................................. 155 California Used Oil Recycling Special Revenue Fund ..................................... 156 California Beverage Container Recycling Special Revenue Fund ................... 157 CATV Peg Special Revenue Fund .................................................................. 158 Housing Asset Special Revenue Fund ............................................................ 159 HOME Grant Special Revenue Fund .............................................................. 160 Community Development Block Grant Special Revenue Fund ........................ 161 FEMA Grant Special Revenue Fund ............................................................... 162 SB1383 Local Assistance Grant Special Revenue Fund ................................. 163 Permanent Local Housing Allocation Special Revenue Fund .......................... 164 MTA Measure W Special Revenue Fund ........................................................ 165 SB2 Planning Grant Special Revenue Fund .................................................... 166 Urban Security Initiative Grant Special Revenue Fund ..................................... 167 City of Hawthorne
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2025
TABLE OF CONTENTS, (Continued)
FINANCIAL SECTION, (Continued):
Rain Water Grant Special Revenue Fund ........................................................ 168 Los Angeles Centers for Alcohol and Drug Abuse Special Revenue Fund ....... 169 California Parks & Recreation Senior Center Special Revenue Fund ............... 170 HUD Community Development Special Revenue Fund.................................... 171 Cannabis Retail Access Grant Special Revenue Fund ..................................... 172 Recycling Fund Special Revenue Fund ........................................................... 173 Homeland Security - StoneGarden Fund Special Revenue Fund ..................... 174 Asset Forfeiture - Justice Fund Special Revenue Fund .................................... 175 USDOT - SS4A Fund Special Revenue Fund .................................................. 176 Homeland Security/Treasury Forfeiture Fund Special Revenue Fund .............. 177 2009 Street Improvements Fund Special Revenue Fund ................................. 178 Development Impact Capital Projects Fund ..................................................... 179 Capital Improvement Capital Projects Fund ..................................................... 180 Public Financing Authority Debt Service Fund ................................................. 181 2016 Refunding Bonds Debt Service Fund ..................................................... 182 2016 Direct Placement Lease Financing Fund ................................................ 183 2019 Pension Obligation Bond Debt Service Fund .......................................... 184 Internal Service Funds:
Combining Statement of Net Position ................................................................... 185 Combining Statement of Revenues, Expenses and
Changes in Fund Net Position ......................................................................... 186 Combining Statement of Cash Flows .................................................................... 187 STATISTICAL SECTION (UNAUDITED):
Net Position by Component .............................................................................................. 189 Changes in Net Position ................................................................................................... 191 Fund Balances of Governmental Funds ........................................................................... 195 Changes in Fund Balances of Governmental Funds ......................................................... 197 Assessed Value and Estimated Actual Value of Taxable Property ................................... 199 Direct and Overlapping Property Tax Rates ..................................................................... 200 Principal Property Taxpayers ........................................................................................... 202 Property Tax Levies and Collections ................................................................................ 203 Ratios of Outstanding Debt by Type ................................................................................. 204 Ratios of General Bonded Debt Outstanding .................................................................... 205 Legal Debt Margin Information ......................................................................................... 206 Pledged-Revenue Coverage ............................................................................................ 208 Direct and Overlapping Debt ............................................................................................ 209 Demographic and Economic Statistics ............................................................................. 210 Principal Employers .......................................................................................................... 211 Full-Time and Part-Time Employees by Function ............................................................. 212 Operating Indicators by Function ...................................................................................... 213 Capital Asset Statistics by Function/Program ................................................................... 215 This page intentionally left blank.
-iJanuary 16, 2026
Honorable Mayor, City Council, and Citizens of the City of Hawthorne:
It is a pleasure to submit the Annual Comprehensive Financial Report (ACFR) of the City of Hawthorne for the fiscal year ended June 30, 2025. The financial statements are presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with Generally Accepted Auditing Standards by an independent auditing firm of licensed certified public accountants. Pursuant to that requirement, we hereby issue the Annual Comprehensive Financial Report of the City of Hawthorne for the fiscal year ended June 30, 2025.
While traditionally addressed to the governing legislative body of the City, this report is also intended to provide relevant financial information to the citizens of the City of Hawthorne, City staff, creditors, investors, and other concerned readers. We encourage all readers to contact the Finance Department with any questions or comments concerning this report.
Purpose and Management Responsibility – The report consists of management's representations concerning the finances of the City of Hawthorne. Management assumes full responsibility for the completeness and reliability of all the information presented. To provide a reasonable basis for making these representations, management of the City of Hawthorne has established a comprehensive internal control framework that is designed to both protect the government's assets from loss, theft or misuse and to compile sufficient reliable information for the preparation of the financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the City of Hawthorne's framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement.
As management, we affirm that to the best of our knowledge and belief, this financial report is complete and reliable in all material respects, and is presented in a manner designed to fairly represent the financial position and results of operations of the various funds and component units of the City of Hawthorne.
The City is responsible for ensuring the completeness and fairness of the information presented in this report. To provide a basis for making these representations, the City's management has established an internal control system that consists of defined responsibilities, authority, and procedures.
-iiAudited Financial Statements – Rogers, Anderson, Malody & Scott, LLP ("RAMS"), a firm of licensed certified public accountants, has audited the City of Hawthorne's financial statements.
The goal of the independent audit was to provide reasonable assurance that the City of Hawthorne's financial statements for the fiscal year ended June 30, 2025, are presented fairly in all material respects. After a thorough evaluation of the City's internal controls and all required financial documents, the independent auditors rendered an unmodified ("clean") opinion that the City of Hawthorne's financial statements contained herewith are fairly presented in conformity with GAAP. The independent auditors' report is presented as the first component of the Financial Section of this report.
Organization of Report – GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City of Hawthorne's MD&A can be found in the Financial Section, immediately following the report of the independent auditors.
City of Hawthorne Profile
The City of Hawthorne was incorporated in 1922 and encompasses 6 square miles. The City is located in the South Bay region of Los Angeles County. It is 17 miles east of downtown Los Angeles and 5 miles east of Los Angeles International Airport (LAX). Neighboring communities include Gardena, Lawndale, and Redondo Beach.
The City of Hawthorne is a California General Law city that operates under the Council/ City Manager form of government. The City Council, which consists of five members, is elected at large and each serves a term of four years. The City Council serves as the legislative and policymaking body of the City and as the Successor Agency to the former Hawthorne Redevelopment Agency, enacts all ordinances and operating resolutions, adopts the annual budget, appoints commissions and committees, and hires the City Manager. The City Manager serves as the chief executive officer and is responsible for implementing the policies, ordinances, and directives of the City Council, overseeing the day-to-day operations of the City, and appointing department directors with the concurrence of the City Council. The City Attorney and Chief of Police are also appointed directly by the Council.
In addition, the City Council appoints members of the following advisory boards and commissions.
Public Funds Advisory Committee Planning Commission
Recreation & Comm. Svc Commission Veterans' Affairs Commission Civil Service Commission Cannabis Program Committee
Senior Citizens' Commission Youth Commission
Every two years, two members of the City Council are elected at large by the community to serve four-year terms. Annually, the Council meets and elects a Mayor Pro Tem from its members to serve a one-year term. The Mayor acts as the presiding officer of the City Council. -iiiCity Services – The City offers a comprehensive range of services, including police protection, public works, engineering, storm drainage, planning and development, human services, park and landscape maintenance, code enforcement, building inspections, and administrative support. Fire protection and Library services are provided by Los Angeles County. Many recreation programs are available for all age groups, as well as services for the mature adult population, throughout the year. The City provides trash collection services through a contracted third-party provider.
Budgetary Policy and Control – The City operates on an annual budget schedule. The annual budget serves as the foundation for the City of Hawthorne's financial planning and management.
The budget development process begins in December. Finance staff updates Excel worksheets for each department. Those worksheets are distributed in February. Each department is responsible for developing the operational line items, while Finance staff is responsible for the salary and benefit line items.
The Finance Director, in coordination with all applicable operating departments, provides the City Manager with proposed revenue projections. These revenue estimates are reviewed in conjunction with the department's expenditure budget requests to determine available funding levels for the fiscal year. Supplemental requests, proposing changes to personnel, services, or capital/equipment purchases, are subject to City Manager review and approval. This procedure applies to all governmental and enterprise funds.
The City Manager and Finance Director meet with Department Heads to review all operating budgets, supplemental requests, department’s goals and programs for the upcoming fiscal year.
After the City Manager completes this review, the proposed budget is presented to the City Council. The City Council then holds a public workshop and a public hearing. The City Council adopts a budget recommended by the City Manager before June 30.
Any Grants, including but not limited to JAG, OTS, CDBG, HOME, Section 8, Street projects, FAA/Airport Grants, ARPA, Community Service/Parks/Homeless Grants, etc., that are not completed by the June 30 Fiscal Year End accrual period, require carry over amounts to be posted to the new fiscal year. This carry-over amount is processed administratively by the Finance Department after the reconciliation of the prior year is completed and reviewed by the department head or designee in charge of the grant administration.
Throughout the fiscal year, the budget can be amended as necessary to meet the City's requirements. After adoption, the City Council may modify appropriations at any time with majority approval. Department Heads and their designated representatives may only authorize expenditures based on appropriations approved by City Council action, and only from accounts under their organizational responsibility. Total expenditures within each fund may not exceed the total appropriations for that fund. Interfund transfers require a budget amendment by the City Council. Interfund transfers for the prior fiscal year closeout are processed administratively by the Finance Department after the reconciliation of the previous year is completed. -ivEconomic Condition and Outlook
Information presented in the City's financial statements is perhaps best understood when it is considered within the context of our broader economic conditions. It is essential to consider various shifts in the national economy, including the potential lowering of interest rates and a slowdown in consumer spending. The ongoing government shutdown delayed the release of the Commerce Department's initial estimate of the third-quarter GDP. Based on the most recent estimate from the Bureau of Economic Analysis, the United States' real gross domestic product (GDP) for the third quarter increased at an annual rate of 4.3% as of December 25, 2025. The second quarter increase was 3.8%. In the first quarter, real GDP decreased .6 percent. This growth was driven primarily by increases in private goods-producing industries, such as construction & manufacturing, and private services-producing industries, including utilities, finance, real estate, and healthcare.
Unemployment is one of the most important measures that economists track to gauge the health of an economy. In December 2025, the Bureau of Labor Statistics reported the national unemployment rate for November at 4.6%, the highest in 4 years, compared to 4.1% in October 2024. It has increased steadily since June 2025. The UCLA Anderson Forecast anticipated that the labor market would weaken further through the end of 2025, with the unemployment rate peaking at 4.6% at the beginning of 2026.
In November, the U.S. Bureau of Economic Analysis reported that the personal consumption expenditures (PCE) price index, a widely used measure of inflation, increased by 2.8% from a year ago. The consumer price index (CPI), another closely watched U.S. inflation gauge, was up 2.7% year-over-year in November. Down from 3.0% previously reported for September. The CPI measures changes in prices paid by urban consumers for a specific basket of goods and services.
On December 10, 2025, the Federal Reserve cut rates by 25 basis points, lowering the target range for the federal funds rate to 3.50% – 3.75%, following similar reductions in September and October, and in line with expectations. This brings borrowing costs to their lowest level since 2022. Policymakers aim to maintain economic stability as they head into 2026. This rate determines the interest banks charge each other for overnight lending, but it also often influences consumer loans such as mortgages, credit cards, and auto loans.
LOCAL ECONOMY
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; however, sales tax revenue increased by 1.7% in fiscal year 2024-25. The total overall Tax revenue category showed an increase over budget of $4 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. -vAccording to the February 2025 Economic Forecast prepared by the Los Angeles County Economic Development Corporation, "We expect slower growth of 2.0 percent in 2025 and 1.8 percent in 2026, in light of the country’s continuing battle against inflation and potentially destabilizing federal economic policies."
California's unemployment rate increased to 5.6% in September 2025, compared to 5.4% in October 2024 and 4.8% in November 2023. The unemployment rate in California has been higher than the national average in the US. Unemployment is one of the most important measures that economists track to gauge the health of an economy. Generally, low unemployment rates indicate a strong economy, as most workers can find employment. Most economists project the U.S. unemployment rate to hover around 4.5% in 2026.
According to Bureau of Labor Statistics data, the average unemployment rate in Los Angeles County for September 2025 was estimated at 5.70%, compared to 5.80% in September 2024. The unemployment rate is expected to average around 5.4% in 2026.
The City of Hawthorne is comprised of a majority of single-family homes, condominiums, and apartments, as well as a mixture of retail, office, industrial, and service entities providing a solid tax base for the City. Most businesses are oriented toward serving local residents and visitors.
The local business environment and the availability of amenities in the community make Hawthorne a desirable place to work and live.
Hawthorne's General Fund revenues for the 2024-2025 fiscal year increased 7.38% compared with the prior fiscal year. Revenues totaled $118.4 million for the year ended June 30, 2025. The City's major revenue sources are property taxes, sales taxes, and licenses/fees. The City also receives revenue through the State of California, including gasoline taxes, which are apportioned by the State based upon population, and property taxes in lieu of motor vehicle license fees, which are apportioned similarly to property taxes. Revenue projections for FY 2024-25 were based on conservative estimates to account for modest economic growth.
One of the City's single largest sources of revenue is sales tax. The City has experienced steady growth in sales tax revenues each year since 2012. Despite the economic slowdown caused by the COVID-19 Pandemic, the City continued to see an increase in Sales Tax revenues. In FY 23-24, the city experienced its first decrease in Sales Tax revenue, primarily due to a decline in the AutoTransportation Category and in business and industry. As mentioned earlier, the City has been fortunate to have a stable and diverse economic base, and Sales Tax showed an increase of 1.7% in FY 24-25. Two of the City’s largest categories are General Retail, which represents 13%, and New Auto sales, which represent 8% of Hawthorne's sales tax revenues. This year, there were decreases in the Auto-Transportation and Fuel Service Station Category, but these were offset by increases in the Business & Industry and Food & Drug categories.
On the expense side, total General Fund expenditures increased by 14.7% in fiscal year 2024-2025 from the prior fiscal year. Expenses for the City totaled $97.7 million for the year ended June 30, 2025. Pressures on the cost of providing these programs and services include, but are not limited to, increased labor costs, inflation, unfunded state and federal mandates (e.g., rising minimum wages and part-time benefits, stormwater runoff permit fees, etc.), and rising pension costs. -viTax Abatement Disclosures
GASB Statement 77 requires disclosure of tax abatement information about (1) a reporting government’s own tax abatement agreements and (2) those that are entered into by other governments and that reduce the reporting government’s tax revenues.
For the purposes of this report, Tax Abatements are defined as resulting from an agreement between a government and an individual or entity in which the government promises to forgo tax revenues and the individual or entity promises to subsequently take a specific action that contributes to economic development or otherwise benefits the government or its citizens.
The City entered into two such Tax Abatement agreements as noted below.
Sales Tax Total
Oceangate Properties, Inc. 07/23/2001 FY 2024-25 $2,209,420 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 automobiles and light trucks known as “South Bay Ford”. Pursuant to the Sixth Implementation Agreement, and in order to induce the Developer 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 City agreed provide to the Developer Sales Tax Incentive Payments. 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.
Transient Occupancy Tax Total
Mogul Hospitality Partners 08/30/2016 FY 2024-25 $1,764,033 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.
Financial Planning
Each year, the City undertakes two comprehensive processes of financial planning and review.
The first takes place during the City Council/Successor Agency Board's review of the City Manager's proposed budget in June, prior to the commencement of the fiscal year beginning July
1. The second is the mid-year review, which evaluates the operating results for the first half of the fiscal year. This mid-year review provides analyses of the City's financial position, with particular emphasis on the General Fund. The City has consistently adopted a fiscally conservative approach and remains in a financially stable position. The focal point of both reviews is the City's five-year projection of General Fund revenue and expenditures. In this context, financial planning considers a longer-term perspective.
-viiFinancial Policies
On September 10, 2019, the City Council approved a minimum Cash Reserve policy to ensure the general fund reserve balance does not fall below three months of average operating expenditures.
This amount is calculated by dividing the budgeted total operating expenditures for the current fiscal year by 4. The Fiscal Year 24-25 Cash Reserve is $27,487,466.
Cash Management
The City manages a pooled investment program for all funds in which temporarily idle cash is invested in a variety of instruments. The investment program is managed in accordance with the Investment Policy approved by the City Council. Safety, liquidity, and yield, in that order, are the objectives of the investment program. Investments are diversified among various investment tools, including certificates of deposit, Federal agency securities, and the State of California's Local Agency Investment Fund (LAIF).
In 2019, the Council approved the addition of a Money Market and Sweep account, both of which are highly liquid and have significantly increased investment earnings. Also in 2019, the Council authorized the investment of $7 million in the General Fund surplus Fund Balance, and in 2020, this amount was increased to $10 million. In 2024, it increased further to $15.5 million. Quarterly reports on investment status and activity are presented to the City Council.
Risk Management
In 2006, the City became an originating member of the Independent Cities Risk Management Authority (ICRMA), a joint powers authority of 18 California cities, for the purpose of pooling the City of Hawthorne's risk for general liability and workers' compensation losses with those of other member cities. The City maintains self-insurance programs for worker's compensation and general liability insurance up to a maximum of $500,000 and $500,000 per occurrence, respectively. General liability claims that exceed the self-insured retention (SIR) of $2 million are covered by ICRMA up to a maximum of $35,000,000 per incident. Worker's compensation claims that exceed the (SIR) are insured by the California Public Entity Insurance Authority up to the California statutory limits for worker's compensation. The City contracts with third party administrators who manages the majority of claims filed against the City.
Awards and Acknowledgments
The City's Comprehensive Annual Financial Report was prepared through the combined efforts of City staff. Special recognition is due to the Finance Department, whose continued efforts have met the requirements to be awarded the GFOA's Certificate of Achievement for Excellence in Financial Reporting for the 8th consecutive year. The department coordinated the closing of the books for the fiscal year, ensuring timely and accurate reporting. We would also like to express our appreciation to all members of the departments who assisted and contributed to the preparation of this report.
-viiiFinally, a special thank you goes to the Mayor, City Council, and City Manager for their support in upholding the highest standards of professionalism in managing the City of Hawthorne's finances. Through ongoing partnership with the community we serve, the City of Hawthorne will continue to be a leader in effective municipal governance and maintain its high quality of life.
-ixCITY 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, GRANTS, & PAYROLL Felice Lopez COMMUNITY SERVICES Kywanna Bowie Phone (310) 349-1640 HOUSING - CDBG/HOME Kimberly Mack Phone (310) 349-1600 BUILDING & SAFETY Paul Wu 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
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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, 2024
Executive Director/CEO
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Tel. 909-889-0871 | www.ramscpa.net | 735 E. Carnegie Dr. Suite 100, San Bernardino, CA 92408
CERTIFIED PUBLIC ACCOUNTANTS
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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, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.
In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position 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, 2025, 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.
Emphasis of Matter
As described in Note 1 to the financial statements during the year ended June 30, 2025, the City adopted new accounting guidance under Governmental Accounting Standards Board (GASB) Statement No. 101, Compensated Absences. Our opinions are not modified with respect to this matter.
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Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the 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.
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.
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.
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Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the required supplementary information, as 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 GAAS, 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. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the accompanying supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual comprehensive financial report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
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Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 16, 2026, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control over financial reporting and compliance.
San Bernardino, California
January 16, 2026
City of Hawthorne
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2025
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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, 2025. 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, 2025, the City’s net position (assets plus deferred outflows of resources less liabilities and deferred inflows of resources) was $103 million. Of this amount, $(151.4) million is unrestricted.
The City of Hawthorne total net position increased from the prior fiscal year by $28,861,646 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 $174,284,406, an increase of $37,845,589 in comparison with the prior year. Approximately 58% of this amount, $101,488,677, 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 $114,610,688 or approximately 117.32% 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, 2025
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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, 2025
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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, CA Parks and Recreation – Community Center Fund, Park Improvements Funds, and the Civic Center Lease Bonds 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, 2025
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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 34-94 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 96-110 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 $103.4 million at June 30, 2025. Approximately $182 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, 2025
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A portion of the City’s net position, $72.5 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 $(151.4) 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 2025 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. 2025 2024 2025 2024 2025 2024
Current and other assets 215,198,610 $ 187,145,806 $ 21,382,155 $ 23,227,057 $ 236,580,765 $ 210,372,863 $ Capital assets, net 189,697,303 172,322,763 14,008,061 11,470,932 203,705,364 183,793,695 Total assets 404,895,913 359,468,569 35,390,216 34,697,989 440,286,129 394,166,558 Deferred outflows of resources 40,794,103 57,105,547 396,801 737,164 41,190,904 57,842,711 Non-current liabilities 295,912,574 275,557,393 606,540 849,785 296,519,114 276,407,178 Other liabilities 21,361,609 31,310,303 1,440,128 527,867 22,801,737 31,838,170 Total Liabilities 317,274,183 306,867,696 2,046,668 1,377,652 319,320,851 308,245,348 Deferred inflows of resources 42,576,611 52,559,626 16,140,377 16,626,747 58,716,988 69,186,373 Net position Net investment in
capital assets 168,245,969 149,390,159 14,008,061 11,470,932 182,254,030 160,861,091 Restricted 72,543,061 34,192,411 - - 72,543,061 34,192,411 Unrestricted (154,949,808) (126,435,776) 3,591,911 5,959,822 (151,357,897) (120,475,954) Total net position 85,839,222 $ 57,146,794 $ 17,599,972 $ 17,430,754 $ 103,439,194 $ 74,577,548 $ Total
Business-Type
Activities
Governmental
Activities
Governmental Activities - The City’s net position from governmental activities totaled $85.8 million. The cost of all governmental activities this year was $137.6 million. However, as shown in the Statement of Activities, the amount that the taxpayers ultimately financed for these activities was only $72.6 million because some of the cost was paid by those who directly benefited from the programs ($19.3 million), or by other governments and organizations that subsidized certain programs with operating and capital grants and contributions ($45.7 million). Overall, the City’s governmental program revenues were $65.0 million. The City paid for the remaining “public benefit” portion of governmental activities with $21.7 million in taxes (some of which could only be used for certain programs) and with $8.7 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, 2025
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Capital contributions and grants decreased by $0.5 million from the prior fiscal year. This decrease is primarily due to a $0.3 million decrease in Parks and Recreation grants and a $0.2 million decrease in Public Works street improvements. Operating grants and contributions, the City’s second largest revenue source, decreased by $7.2 million from the prior fiscal year. This was primarily due a $6.7 million decrease in American Rescue Plan Act programs, and a $0.5 million reduction in Public Works grants in Community Development programs. Property tax increased by $1.6 million or 6.2%. Sales tax, the City’s largest revenue source, increased by $0.6 million or 1.7% from the prior fiscal year. Utility users tax taxes increased by $1.8 million primarily due to gas and electric utility rate increases, caused by inflation, climate change, in addition to higher consumer usage.
Increase
(Decrease) Percent
Percent From Increase
2025 of Total 2024 (Decrease)
Revenue Source
Charges for services 19,266,212 $ 11.6% 3,565,092 $ 18.5% Operating contributions and grants 25,978,623 15.6% (7,153,703) -27.5% Capital contributions and grants 19,734,808 11.9% (545,528) -2.8% Property taxes 26,024,052 15.7% 1,606,750 6.2%
Sales taxes 36,632,700 22.1% 620,302 1.7%
Transient occupancy taxes 7,458,960 4.4% 612,857 8.2%
Franchise taxes 2,084,128 1.3% (1,609,466) -77.2%
Business license taxes 9,809,437 5.9% (732,043) -7.5%
Utility users tax 9,846,539 5.9% 1,817,095 18.5%
Cannabis tax 460,422 0.3% 271,398 58.9%
Other 8,717,020 5.3% 918,011 10.5%
Total revenue $ 166,012,901 100% $ (629,235) -0.4%
Charges for
Services, 11.6%
Operating
Contributions and
Grants, 15.6%
Capital
Contributions and
Grants, 11.9%
Property Taxes,
15.7%
Sales Taxes,
22.1%
Franchise, UUT &
TOT, 11.6%
Business License
Tax, 5.9%
Cannabis Tax,
0.3%
Other General
Revenue and
Transfers, 5.3%
GOVERNMENTAL ACTIVITIES
Revenue by Source
Fiscal Year 2024-25
City of Hawthorne
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2025
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The most significant governmental expense for the City was in providing for public safety, which incurred expenses of $67.2 million. The change is mainly due to the unrealized change in the net pension liability.
Increase
(Decrease) Percent
Percent From Increase
2025 of Total 2024 (Decrease)
Function
General government 26,300,945 $ 19.2% 9,480,105 $ 36.0% Public safety 67,271,419 48.9% (4,395,861) -6.5%
Community development 18,027,905 13.1% (751,790) -4.2%
Parks and recreation 5,578,935 4.1% (513,493) -9.2%
Public works 14,195,033 10.3% (1,679,768) -11.8%
Interest on long-term debt 6,220,201 4.5% 1,780,636 28.6% Total expenses $ 137,594,438 100% $ 3,919,829 2.8%
Charges for
Services, 11.6%
Operating
Contributions and
Grants, 15.6%
Capital
Contributions and
Grants, 11.9%
Property Taxes,
15.7%
Sales Taxes,
22.1%
Franchise, UUT &
TOT, 11.6%
Business License
Tax, 5.9%
Cannabis Tax,
0.3%
Other General
Revenue and
Transfers, 5.3%
GOVERNMENTAL ACTIVITIES
Revenue by Source
Fiscal Year 2024-25
City of Hawthorne
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2025
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Business-type Activities. Revenues of the City’s business-type activities were $2.7 million for the fiscal year ending June 30, 2025. Expenses for the City’s business-type activities were $2.3 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 $1.4 million. Expenses for the City’s Airport were $1.3 million, resulting in an increase in net position before transfers of $98 thousand.
The most significant expenses of the Airport are $0.8 million for administration and $0.4 million in depreciation.
The City’s Sewer and Storm Drain Maintenance services recorded charges for service of $1.3 million, while expenses totaled $1 million, resulting in an increase in net position before transfers of $0.2 million. The most significant expenses of the Sewer Fund are $0.7 million for administration, and $0.1 million 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, 2025
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2025 2024 2025 2024 2025 2024
Revenues
Program revenues:
Charges for services 19,266,212 $ 15,701,120 $ 2,345,796 $ 1,908,298 $ 21,612,008 $ 17,609,418 $ Operating contributions and
grants 25,978,623 33,132,326 211,388 359,050 26,190,011 33,491,376 Capital contributions and grants 19,734,808 20,280,336 - - 19,734,808 20,280,336 General revenues:
Property taxes 26,024,052 24,417,302 - - 26,024,052 24,417,302 Sales taxes 36,632,700 36,012,398 - - 36,632,700 36,012,398 Transient occupancy taxes 7,458,960 6,846,103 - - 7,458,960 6,846,103 Franchise taxes 2,084,128 3,693,594 - - 2,084,128 3,693,594 Business License taxes 9,809,437 10,541,480 - - 9,809,437 10,541,480 Utility Users tax 9,846,539 8,029,444 - - 9,846,539 8,029,444 Cannabis tax 460,422 189,024 - - 460,422 189,024 Other 8,717,020 7,799,009 179,823 519,780 8,896,843 8,318,789 Total Revenues 166,012,901 166,642,136 2,737,007 2,787,128 168,749,908 169,429,264 Expenses General government 26,300,945 16,820,840 - - 26,300,945 16,820,840 Public safety 67,271,419 71,667,280 - - 67,271,419 71,667,280 Community development 18,027,905 18,779,695 - - 18,027,905 18,779,695 Parks and recreation 5,578,935 6,092,428 - - 5,578,935 6,092,428 Public works 14,195,033 15,874,801 - - 14,195,033 15,874,801 Interest on long-term debt 6,220,201 4,439,565 - - 6,220,201 4,439,565 Airport - - 1,306,868 1,466,634 1,306,868 1,466,634 Sewer and storm drain - - 986,956 933,692 986,956 933,692 Total Expenses 137,594,438 133,674,609 2,293,824 2,400,326 139,888,262 136,074,935 Increase in Net Position
Before Transfers 28,418,463 32,967,527 443,183 386,802 28,861,646 33,354,329 Transfers in/(out) 273,965 224,626 (273,965) (224,626) - - Change in Net Position 28,692,428 33,192,153 169,218 162,176 28,861,646 33,354,329 Net Position, Beginning 57,146,794 23,954,641 17,430,754 17,268,578 74,577,548 41,223,219 Net Position, Ending $ 85,839,222 $ 57,146,794 $ 17,599,972 $ 17,430,754 $ 103,439,194 $ 74,577,548 Total
Governmental
Activities
Business-Type
Activities
STATEMENT OF ACTIVITIES
For The Fiscal Year Ended June 30,
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, 2025
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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, 2025, the City of Hawthorne governmental funds reported combined fund balances of $174.3 million, an increase of $37.8 million in comparison with the prior year. Approximately 58% of this amount ($101.5 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 $114.6 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 117.32% of the total General Fund expenditures, while total fund balance represents approximately 117.42% of that same amount.
The fund balance of the City of Hawthorne General Fund increased by $5.2 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 $1.6 million, sales tax revenue increased by $0.6 million, and other taxes increased by $0.9 million from the prior fiscal year. Intergovernmental revenues increased by $21 thousand due to a decrease in state-mandated and Prop A reimbursements, offset by an increase in Prop A for Transit Police. General Fund expenditures were $12.6 million higher than in the previous fiscal year. This increase is due to increases in Public Safety and administrative services.
The Hawthorne Housing Authority Special Revenue Fund is used to account for the housing assistance programs for qualified low-income residents. This fund ended the year with a fund balance of $629 thousand, a increase of $196 thousand from the fiscal year 2024. The increase 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 $0, a decrease of $833 thousand from fiscal year 2024. The decrease was mainly due to the recognition of investment loss allocated to this fund.
The CA Parks & Recreation - Community Center Fund is used account for grant funding to rehabilitate the city’s community center. The fund ended the year with a deficit fund balance of $3.7 million, a decrease of $2.7 million from fiscal year 2024. The decrease was mainly due to pending reimbursement from current projects.
City of Hawthorne
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2025
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The Park Improvements Fund is used to provide a clean, safe, and accessible environment for the community members. The fund ended the year with a deficit fund balance of $3.6 million, a decrease of $3.3 million from fiscal year 2024. The decrease was mainly due to pending reimbursement from current projects.
The Civic Center Lease Bonds Fund is used to account for the 2024 Lease Revenue Bonds.
The fund ended the year with a fund balance of $31.5 million, an increase of $31.5 million from fiscal year 2024. The increase was mainly due to the issuance of the 2024 Lease Revenue Bonds.
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 $9.1 million. The total change in net position for the Airport Fund was negative $61 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 $8.0 million. The total change in net position for the Sewer and Storm Drain Fund was $207 thousand. The change was mainly due 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 $334 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 $3.6 million due to the implementation of public safety and community related programs and services, for a total amended expenditure budget of $105.9 million for Fiscal Year 2024-2025. 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 $5.9 million in Fiscal Year 2024-2025. The excess revenue was primarily due to an increase in tax and special assessments revenues and operating transfers in.
City of Hawthorne
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2025
-16-
The General Fund expenditures were under budgeted expenditures by approximately $8.2 million.
The less expenditures were primarily due to a decrease in Public safety.
The overall General Fund Budget for Fiscal Year 2024-2025 was approximately $14.1 million more favorably than projected due to the additional revenues, as noted above.
Difference
Taxes $ 98,138,428 94,124,937 $ 4,013,491 $
Licenses and permits 1,885,304 2,058,419 (173,115)
Intergovernmental 1,884,985 1,690,950 194,035 Charges for services 6,315,694 5,368,900 946,794 Fines and forfeitures 2,168,952 3,200,000 (1,031,048) Use of money and property 5,275,216 3,500,000 1,775,216 Contributions 200,000 200,000 - Miscellaneous 2,569,034 2,392,912 176,122 $ 118,437,613 112,536,118 $ 5,901,495 $ Estimated
Revenues Actual Revenues
Difference
General government $ 22,989,384 24,029,929 $ 1,040,545 $ Public safety 63,063,778 67,252,731 4,188,953 Community development 3,491,537 4,119,731 628,194 Parks and recreation 5,250,375 5,809,700 559,325 Public works 2,051,545 3,836,972 1,785,427 Capital outlay 848,008 856,091 8,083 $ 105,905,154 $ 97,694,627 $ 8,210,527 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, 2025, net capital assets totaled $189.7 million for governmental activities and $14.0 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, 2025
-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 2024- 2025 was $19.9 million compared to prior year.
2025 2024 2025 2024 2025 2024
Land 25,700,766 $ 25,350,766 $ 37,314 $ 37,314 $ 25,738,080 $ 25,388,080 $ Buildings and Improvements 15,912,839 17,377,563 802,920 854,315 16,715,759 18,231,878 Furniture and Equipment 6,784,265 7,033,348 660,229 - 7,444,494 7,033,348 Infrastructure 122,984,552 102,980,533 9,499,200 9,897,718 132,483,752 112,878,251 Investment in Joint Venture (RCC) 3,001,908 3,257,498 - - 3,001,908 3,257,498 Construction in progress 14,077,393 16,311,546 3,008,398 681,585 17,085,791 16,993,131 Right-to-use lease / subscriptions 1,235,580 11,509 - - 1,235,580 11,509 Total $ 172,322,763 189,697,303 $ 14,008,061 $ 11,470,932 $ 203,705,364 $ 183,793,695 $ 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 $153 million. The remainder of the City of Hawthorne’s long-term obligations comprises lease / SBITA payable, compensated absences, OPEB, pension-related debt, and claims and judgments.
City of Hawthorne’ Outstanding Liabilities 2025 2024 2025 2024 2025 2024 2025 2024 Long-Term Debt:
Bond 153,024,974 $ 128,193,600 $ - $ - $ - $ - $ 153,024,974 $ 128,193,600 $ Lease/ SBITA payable 1,173,470 - - 11,506 - - 1,173,470 11,506 Total $ 128,193,600 154,198,444 $ - $ 11,506 $ - $ - $ 154,198,444 $ 128,205,106 $ Operational Liabilities:
Compensated absences 9,703,727 $ 8,026,448 $ 67,071 $ 44,769 $ 135,078 $ 120,015 $ 9,905,876 $ 8,191,232 $ OPEB 99,916,552 100,619,074 - - - - 99,916,552 100,619,074 Net Pension Liability 25,145,711 31,441,816 404,080 625,470 471,462 729,770 26,021,253 32,797,056 Claims and Judgment payable - - 6,476,989 6,594,710 - - 6,476,989 6,594,710 Total $ 134,765,990 $ 140,087,338 $ 6,948,140 $ 7,264,949 $ 606,540 $ 849,785 $ 142,320,670 $ 148,202,072 Total Activities Governmental Business-Type Activities
Internal Service
Activities
The City’s total long-term liabilities increased by $20.1 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, 2025
-18-
ECONOMIC FACTORS AND NEXT YEAR'S BUDGET
Real GDP increased 4.3% at the end of the third quarter of 2025, on top of 3.8% in the second quarter of 2025. 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 revenues increased by 7.38% ($8,137,307) in FY 2025 compared to FY 2024.
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; however, sales tax revenue increased by 1.7% in fiscal year 2024-25. The total overall Tax revenue category showed an increase over budget of $4 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 2025 Economic Forecast prepared by the Los Angeles County Economic Development Corporation, "We expect slower growth of 2.0 percent in 2025 and 1.8 percent in 2026, in light of the country’s continuing battle against inflation and potentially destabilizing federal economic policies."
California's unemployment rate increased to 5.6% in September 2025, compared to 5.4% in October 2024 and 4.8% in November 2023. The unemployment rate in California has been higher than the national average in the US. Unemployment is one of the most important measures that economists track to gauge the health of an economy. Generally, low unemployment rates indicate a strong economy, as most workers can find employment. Most economists project the U.S. unemployment rate to hover around 4.5% in 2026.
According to Bureau of Labor Statistics data, the average unemployment rate in Los Angeles County for September 2025 was estimated at 5.70%, compared to 5.80% in September 2024.
The unemployment rate is expected to average around 5.4% in 2026.
In developing the budget for fiscal year 2024-25, the primary objective was to build upon the City Council's direction to reduce general fund expenditures and explore opportunities for new revenues. On that note, the City was successful in attracting new businesses such as Chipotle, Chicken Maison, and Sports Basement, to name a few. In order to continue to retain and attract business, the City must strive to maintain a business-friendly attitude. 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 2024- 25 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, 2025
-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, 2025
The accompanying notes are an integral part of these financial statements. -20-
Governmental Business-Type
Activities Activities Total
Assets
Cash and investments 151,959,581 $ 4,234,374 $ 156,193,955 $ Cash and investments with fiscal agents 35,550,983 - 35,550,983 Receivables:
Accounts 20,752,342 292,290 21,044,632
Taxes 246,000 - 246,000
Interest 804,965 36,888 841,853
Due from other governments 366,734 - 366,734
Leases 5,433,402 16,818,603 22,252,005
Inventories 84,603 - 84,603 Capital assets, not being depreciated 39,778,159 3,045,712 42,823,871 Capital assets, net of accumulated depreciation 149,919,144 10,962,349 160,881,493 Total assets 404,895,913 35,390,216 440,286,129 Deferred Outflows of Resources
Unamortized loss on defeasance of debt 184,487 - 184,487 Pension related 25,231,156 396,801 25,627,957 OPEB related 15,378,460 - 15,378,460 Total deferred outflows of resources 40,794,103 396,801 41,190,904 Liabilities
Accounts payable 6,606,359 1,291,504 7,897,863 Accrued liabilities 1,910,391 43,759 1,954,150 Accrued Benefits Payable 1,599,556 - 1,599,556
Accrued interest 1,363,602 - 1,363,602
Unearned revenue 7,037,922 84,601 7,122,523
Deposits payable 2,843,779 20,264 2,864,043
Non-current liabilities:
Due within one year
Claims and judgments 1,295,398 - 1,295,398 Compensated absences 1,954,159 27,016 1,981,175 Long-term debt 6,717,928 - 6,717,928
Due in more than one year
Claims and judgments 5,181,591 - 5,181,591
Compensated absences 7,816,639 108,062 7,924,701
Long-term debt 147,480,516 - 147,480,516 Net pension liability 25,549,791 471,462 26,021,253 OPEB liability 99,916,552 - 99,916,552 Total liabilities 317,274,183 2,046,668 319,320,851 Deferred Inflows of Resources Pension related 10,995,553 15,037 11,010,590 OPEB related 26,383,176 - 26,383,176 Lease related 5,197,882 16,125,340 21,323,222
Total deferred inflows of resources 42,576,611 16,140,377 58,716,988 Net Position (deficit)
Net investment in capital assets 168,245,969 14,008,061 182,254,030 Restricted for:
Public safety 1,821,431 - 1,821,431 Community development 8,682,362 - 8,682,362 Parks and recreation 451,871 - 451,871 Public works 20,289,154 - 20,289,154 Capital improvements 9,316,338 - 9,316,338 Debt service 31,981,905 - 31,981,905 Unrestricted (154,949,808) 3,591,911 (151,357,897) Total net position 85,839,222 $ 17,599,972 $ 103,439,194 $ City of Hawthorne
Statement of Activities
For the Fiscal Year Ended June 30, 2025
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 26,300,945 $ 6,705,543 $ 8,547,416 $ 79,331 $ Public safety 67,271,419 6,294,326 2,498,219 - Community development 18,027,905 1,963,225 10,095,436 16,943,060 Parks and recreation 5,578,935 689,745 - - Public works 14,195,033 3,613,373 4,837,552 2,712,417 Interest on long-term debt 6,220,201 - - - Total governmental activities 137,594,438 19,266,212 25,978,623 19,734,808 Business-type activities:
Airport 1,306,868 1,014,295 211,388 - Sewer and storm drain 986,956 1,308,386 - - Storm water - 23,115 - - Total business-type activities 2,293,824 2,345,796 211,388 - Total Primary Government 139,888,262 $ 21,612,008 $ 26,190,011 $ 19,734,808 $ 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, Beginning
Net Position, Ending
Functions/Programs
Program Revenues
-22-
Governmental Business-Type
Activities Activities Total
$ - (10,968,655) $ (10,968,655) $
- (58,478,874) (58,478,874)
- 10,973,816 10,973,816
- (4,889,190) (4,889,190)
- (3,031,691) (3,031,691)
- (6,220,201) (6,220,201)
- (72,614,795) (72,614,795)
(81,185) - (81,185)
321,430 - 321,430
23,115 - 23,115
263,360 - 263,360
263,360 (72,614,795) (72,351,435)
- 26,024,052 26,024,052
- 36,632,700 36,632,700
- 7,458,960 7,458,960
- 2,084,128 2,084,128
- 9,809,437 9,809,437
- 9,846,539 9,846,539
- 460,422 460,422
179,823 1,952,089 2,131,912
- 6,764,931 6,764,931
(273,965) 273,965 -
(94,142) 101,307,223 101,213,081
169,218 28,692,428 28,861,646
17,430,754 57,146,794 74,577,548
$ 17,599,972 85,839,222 $ 103,439,194 $
Net (Expense) Revenue and Changes in Net Position
City of Hawthorne
Balance Sheet – Governmental Funds
June 30, 2025
The accompanying notes are an integral part of these financial statements. -23-
CA Parks & RecreationHawthorne American Rescue Community Center General Housing Authority Plan Act (Formerly Nonmajor)
Cash and investments 100,486,949 $ 1,182,571 $ - $ - $
Cash and investments with fiscal agents - - 5,387,847 - Receivables:
Accounts 10,669,874 583,945 - 3,664,957 Taxes 234,505 - - - Interest 590,424 - - - Leases 5,433,402 - - - Due from other governments - - - - Due from other funds 11,212,181 - - - Inventories 70,292 - - - Total assets 128,697,627 $ 1,766,516 $ 5,387,847 $ 3,664,957 $ Liabilities:
Accounts payable 2,723,389 $ 20,110 $ 229,910 $ 51,328 $ Accrued liabilities 1,684,534 22,028 - 3,022 Accrued Benefits Payable 1,599,556 - - - Unearned revenue - 199,936 5,157,937 - Deposits payable 2,774,757 - - - Due to other funds - 334,736 - 3,610,607 Total liabilities 8,782,236 576,810 5,387,847 3,664,957 Unavailable revenue - 560,221 - 3,664,957
Lease related - 5,197,882 - - Total deferred inflows of resources 5,197,882 560,221 - 3,664,957 Nonspendable 70,292 - - - Restricted 36,529 629,485 - - Unassigned 114,610,688 - - (3,664,957) Total fund balances 114,717,509 629,485 - (3,664,957) Total liabilities, deferred inflows of
resources and fund balances 128,697,627 $ 1,766,516 $ 5,387,847 $ 3,664,957 $ Special Revenue Funds
LIABILITIES, DEFERRED INFLOWS OF
Deferred Inflows of Resources:
Fund Balances (Deficit):
ASSETS
RESOURCES AND FUND BALANCES
-24-
Capital Projects Funds Debt Service Fund
Park Nonmajor Total
Improvements Civic Center Governmental Governmental
(Formerly Nonmajor) Lease Bonds Funds Funds
$ 1,355,771 - $ 41,779,768 $ 144,805,059 $
30,163,129 - 7 35,550,983
- 3,577,043 2,231,657 20,727,476
- - 11,495 246,000
- - 214,541 804,965
- - - 5,433,402
- - 366,734 366,734
- - - 11,212,181
- - - 70,292 $ 31,518,900 3,577,043 $ 44,604,202 $ 219,217,092 $ $ - 251,793 $ 2,927,840 $ 6,204,370 $
- 1,422 173,242 1,884,248
- - - 1,599,556
- - 1,680,049 7,037,922
- - 69,022 2,843,779
- 3,316,252 3,950,586 11,212,181
- 3,569,467 8,800,739 30,782,056
- 3,577,043 1,150,527 8,952,748
- - 5,197,882 -
- 3,577,043 1,150,527 14,150,630
- - - 70,292
31,518,900 - 40,540,523 72,725,437
- (3,569,467) (5,887,587) 101,488,677
31,518,900 (3,569,467) 34,652,936 174,284,406
$ 31,518,900 3,577,043 $ 44,604,202 $ 219,217,092 $
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City of Hawthorne
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position June 30, 2025
The accompanying notes are an integral part of these financial statements. -25-
Fund balances of governmental funds 174,284,406 $
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. 186,295,474 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 24,891,067 $ Pension related deferred inflows of resources (10,982,665) Other post-employment benefits related deferred outflows of resources 15,378,460 Other post-employment benefits related deferred inflows of resources (26,383,176) 2,903,686 Long-term liabilities are not due and payable in the current period and are not reported in the governmental funds.
Bonds/Lease payable, net (154,198,444) Compensated absences (9,703,727) Net pension liability (25,145,711) Other post-employment benefits obligation (99,916,552) (288,964,434) 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 184,487 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 8,952,748 Accrued interest payable for the interest due on long-term debt has not been reported in the governmental funds. (1,363,602)
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. 3,546,457 Net position of governmental activities 85,839,222 $ City of Hawthorne
Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds
For the Fiscal Year Ended June 30, 2025
The accompanying notes are an integral part of these financial statements. -26-
2009 Street
Hawthorne American Rescue Improvement
General Housing Authority Plan Act (Formerly Major)
Revenues
Taxes $ - 98,138,428 $ - $
Licenses and permits - 1,885,304 -
Intergovernmental 1,884,985 12,160,068 4,223,722 Charges for services 856,853 6,315,694 - Fines and forfeitures - 2,168,952 - Use of money and property 115 5,275,216 (833,344) Contributions 200,000 - - Miscellaneous 5,150 2,569,034 - Total revenues 13,022,186 118,437,613 3,390,378 Expenditures Current:
General government - 22,989,384 4,223,722 Public safety - 63,063,778 - Community development 12,708,993 3,491,537 - Parks and recreation 5,250,375 2,781 - Public works 2,051,545 - - Capital outlay - 848,008 - Debt service:
Principal retirement - - -
Interest and fiscal charges - - - Bond issuance costs - - - Total expenditures 12,711,774 97,694,627 4,223,722 Excess (deficiency) of revenues over (under) expenditures 20,742,986 310,412 (833,344) Other Financing Sources (Uses) Issuance of debt - - - Premium on issuance of debt - - - Lease acquisition - - - Subscription aquisition 492,800 - - Transfers in - 41,494 - Transfers out (113,855) (16,033,444) - Total other financing sources (uses) (113,855) (15,499,150) - Net changes in fund balances 196,557 5,243,836 (833,344) Fund Balances (deficit) Beginning, previously reported 109,473,673 432,928 833,344 (1,589,972) Change from/to nonmajor/major - - - 1,589,972 Beginning, as restated 109,473,673 432,928 833,344 - Ending $ 629,485 114,717,509 $ - $ - $ Special Revenue Funds
City of Hawthorne
Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds
-27-
Special Revenue Funds Debt Service Fund
CA Parks & Recreation- Park Nonmajor Total
Community Center Improvements Civic Center Governmental Governmental (Formerly Nonmajor) (Formerly Nonmajor) Lease Bonds Funds Funds $ - - $ - $ 580,622 $ 98,719,050 $
- - - 153,820 2,039,124
- - - 23,050,293 41,319,068
- - - 218,955 7,391,502
- - - 1,800,130 3,969,082
2,288 - 797,456 2,401,945 7,643,676
- - - - 200,000
- - - 742,607 3,316,791
2,288 - 797,456 28,948,372 164,598,293
- - - 2,045,856 29,258,962
- - - 1,341,879 64,405,657
328,789 74,171 - 5,372,620 21,976,110
3,434,425 146,726 - 544,846 9,379,153
- - - 8,750,550 10,802,095
- 2,520,240 - 8,013,599 11,381,847
- - - 5,350,850 5,350,850
- - 778,556 4,407,284 5,185,840
- - 439,453 - 439,453
3,763,214 2,741,137 1,218,009 35,827,484 158,179,967
(3,760,926) (2,741,137) (420,553) (6,879,112) 6,418,326 - - 26,950,000 - 26,950,000
- - 3,489,453 - 3,489,453
- - - 325,632 325,632
- - - 744,176 1,236,976
411,721 - 1,500,000 15,939,895 17,893,110
- - - (2,320,339) (18,467,638)
411,721 - 31,939,453 14,689,364 31,427,533
(3,349,205) (2,741,137) 31,518,900 7,810,252 37,845,859 - - - 27,288,574 136,438,547
(220,262) (923,820) - (445,890) -
(220,262) (923,820) - 26,842,684 136,438,547 $ (3,569,467) (3,664,957) $ 31,518,900 $ 34,652,936 $ 174,284,406 $ Capital Projects Funds
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, 2025
The accompanying notes are an integral part of these financial statements. -28-
Net changes in fund balances - total governmental funds 37,845,859 $ 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 23,597,567 $
Capital asset disposals, net (839,164) Depreciation/amortization expense (6,382,214) 16,376,189 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 1,297,820 Long-term debt issued (26,950,000) Premium on issuance of debt (3,489,453) Acquisition of Lease and subscriptions (1,562,608) Principal payments on long-term debt 5,350,850 Principal payments of lease liability 13,583 Principal payments of subscription liability 375,555 (26,262,073) 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 (1,677,279) Changes in pension related items (4,736,552) Changes in other post-employment benefits related items 5,241,810 Change in accrued interest (815,241) Amortization of bond discount (8,498) Amortization of bond premium 265,727 Amortization of deferred amount on refunding (36,896) (1,766,929) 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. 1,201,562 Changes in net position of governmental activities 28,692,428 $ 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, 2025
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 1,247,587 $ 2,652,088 $ 334,699 $ 4,234,374 $ 7,154,522 $ Receivables:
Accounts 164,631 127,659 - 292,290 24,866 Leases - 16,818,603 - 16,818,603 - Interest 36,888 - - 36,888 -
Inventories - - - - 14,311 Total current assets 18,230,737 2,816,719 334,699 21,382,155 7,193,699 Noncurrent assets:
Capital assets, not depreciated/amortized 660,473 2,385,239 - 3,045,712 - Capital assets, net of depreciation/amortization 6,741,827 4,220,522 - 10,962,349 3,401,829 Total noncurrent assets 7,402,300 6,605,761 - 14,008,061 3,401,829 Total assets 9,422,480 25,633,037 334,699 35,390,216 10,595,528 Deferred Outflows of Resources Pension related 223,159 173,642 - 396,801 340,089 Current liabilities:
Accounts payable 1,261,464 30,040 - 1,291,504 401,989 Accrued liabilities 21,958 21,801 - 43,759 26,143 Unearned revenue - 84,601 - 84,601 - Deposits payable 20,264 - - 20,264 - Compensated absences 27,016 - - 27,016 13,414 Claims and judgements payable - - - - 1,295,398 Total current liabilities 183,879 1,283,265 - 1,467,144 1,736,944 Compensated absences - 108,062 - 108,062 53,657 Claims and judgements - - - - 5,181,591 Net pension liability 206,314 265,148 - 471,462 404,080 Total noncurrent liabilities 373,210 206,314 - 579,524 5,639,328 Total liabilities 1,489,579 557,089 - 2,046,668 7,376,272 Deferred Inflows of Resources Pension related 8,457 6,580 - 15,037 12,888 Lease related - 16,125,340 - 16,125,340 - Total deferred inflows of resources 6,580 16,133,797 - 16,140,377 12,888 Net position (Deficit) Net investment in capital assets 6,605,761 7,402,300 - 14,008,061 3,401,829 Unrestricted 1,494,202 1,763,010 334,699 3,591,911 144,628 Total net position $ 8,099,963 9,165,310 $ 334,699 $ 17,599,972 $ 3,546,457 $ 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, 2025
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 1,014,295 $ 1,308,386 $ 23,115 $ $ 10,823,706 2,345,796 $ Intergovernmental 211,388 - - 211,388 - Miscellaneous - 179,823 - 179,823 116,788 Total operating revenues 1,308,386 1,405,506 23,115 2,737,007 10,940,494 Operating Expenses Public safety - - - 78,924 - Administration and general 809,697 680,198 - 1,489,895 1,793,679 Materials and supplies 30,564 28,566 - 59,130 675,553 Contractual services 55,097 69,545 - 124,642 7,449,551 Cost of sales and services 53,244 78,390 - 131,634 - Depreciation 358,266 130,257 - 488,523 589,718 Total operating expenses 1,306,868 986,956 - 2,293,824 10,587,425 Operating income (loss) 321,430 98,638 23,115 353,069 443,183 Transfers Transfers in - - - 1,000,000 - Transfers out (160,216) (113,749) - (273,965) (151,507) Total transfers (113,749) (160,216) - (273,965) 848,493 Change in net position (61,578) 207,681 23,115 169,218 1,201,562 Net Position Beginning 9,226,888 7,892,282 311,584 17,430,754 2,344,895 Ending 9,165,310 $ 8,099,963 $ 334,699 $ 17,599,972 $ 3,546,457 $ Non-major Funds
City of Hawthorne
Statement of Cash Flows
Proprietary Funds
For the Fiscal Year Ended June 30, 2025
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 1,147,336 $ 1,307,091 $ 23,115 $ 2,477,542 $ 10,941,146 $ Cash paid to suppliers for goods and services 601,210 (412,315) - 188,895 (9,778,708) Cash paid to employees for services (486,646) (388,220) - (874,866) (517,856) Net cash provided by operating activities 248,375 1,520,081 23,115 1,791,571 644,582 Cash flows from noncapital financing activities Transfer from debt service funds - - - - 1,000,000
Transfer to debt service funds (160,216) (113,749) - (273,965) (151,507) Net cash provided (used) by noncapital financing activities (160,216) (113,749) - (273,965) 848,493 Cash flows from capital and related financing activities Acquisition and construction of capital assets (95,982) (2,929,670) - (3,025,652) (1,588,073) Payments on lease - - - - (11,506) Net cash used for capital and related financing activities (95,982) (2,929,670) - (3,025,652) (1,599,579) Net increase (decrease) in cash and cash equivalents (1,523,338) (7,823) 23,115 (1,508,046) (106,504) Cash and cash equivalents, beginning of year 1,255,410 4,175,426 311,584 5,742,420 7,261,026 Cash and cash equivalents, end of year 1,247,587 $ 2,652,088 $ 334,699 $ 4,234,374 $ 7,154,522 $ Reconciliation of operating income (loss) to net cash
provided by operating activities:
Operating income (loss) 98,638 $ 321,430 $ 23,115 $ 443,183 $ 353,069 $ Adjustments to reconcile operating income (loss) to
net cash provided (used) by operating activities:
Depreciation/amortization 358,266 130,257 - 488,523 589,718 (Increase) decrease in assets/deferred outflows:
Accounts receivable 12,765 (1,295) - 11,470 652 Lease receivable 325,386 - - 325,386 - Deferred outflows of resources - pension 191,418 148,945 - 340,363 291,718 Increase (decrease) in liabilities/deferred inflows:
Accounts payable (16,021) 1,029,590 - 1,013,569 (283,239) Accrued liabilities 1,371 1,794 - 3,165 - Due to other governments - - - - 4,778 Claims and judgements payable - - - - (117,721) Unearned revenue (104,473) - - (104,473) - Compensated absences 15,063 - - 15,063 22,302 Net pension liability (145,271) (113,037) - (258,308) (221,390) Deferred inflows of resources - pension 3,081 2,397 - 5,478 4,695 Deferred inflows of resources - leases (491,848) - - (491,848) - Total adjustments 149,737 1,198,651 - 1,348,388 291,513 Net cash provided by operating activities $ 1,520,081 248,375 $ 23,115 $ 1,791,571 $ 644,582 $ Non-major Funds
City of Hawthorne
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2025
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 945,623 $ 1,266,626 $
Receivables:
Taxes - 20,876
Interest 12,964 5,251
Restricted assets:
Cash and investments with fiscal agents 11,057 2,923,241 Total assets 969,644 4,215,994 Deferred Outflows of Resources Deferred amount on refunding 1,899,707 - Liabilities
Accounts payable 6,106 2,889 Accrued liabilities 3,305 - Interest payable 8,759 - Due to City of Hawthorne 366,734 - Long-term liabilities:
Due in more than one year 48,105,091 - Total liabilities 48,489,995 2,889 Deferred Inflows of Resources Deferred amount on refunding 4,724,783 - Fiduciary Net Position (Deficit) Restricted for other agencies - 4,213,105 Unrestricted net position (50,345,427) - Total fiduciary net position $ (50,345,427) $ 4,213,105 City of Hawthorne
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Fiscal Year Ended June 30, 2025
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 3,549,974 $ - $
Use of money and property 67,568 104,250
Miscellaneous revenue 233,265 - Tax collection for other agencies - 2,759,098 Contribution collection for other agencies 1,768,250 2,517,342 Total additions 5,619,057 5,380,690 Deductions
Administrative expenses 693,180 49,379
Contractual services 154,303 - Contribution to other agencies 2,115,157 - Bond issuance costs 1,361,817 - Debt service:
Principal payments - 2,990,000
Interest and fiscal charges 460,992 1,746,817
Payment to refunded bond escrow - 2,369,854
Total deductions 4,785,449 7,156,050 Change in fiduciary net position 833,608 (1,775,360) Net Position (Deficit) Beginning (51,179,035) 5,988,465 Ending (50,345,427) $ 4,213,105 $ This page intentionally left blank
City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2025
-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, 2025
-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, 2025
-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, 2025
-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 California Parks & Recreation Community Center Fund is used to account for grant funding to rehabilitate the city’s community center.
The Park Improvements Grants Fund is used 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.
The Civic Center Lease Bonds Fund is used to account for the debt service on 2024 Lease Revenue Bonds.
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.
Capital Projects Funds are used to account for financial resources used for the acquisition or construction of major capital facilities.
Debt Service Funds are used to account for the accumulation of resources for and the payment of principal and interest on general long-term debt.
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.
City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2025
-38-
1) ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
Measurement Focus, Basis of Accounting and Financial Statement Presentation, (continued)
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.
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.
City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2025
-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, 2025.
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, 2025.
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, 2025
-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 includes 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. 101 – Compensated Absences: the City reviewed its compensated absences policies and accrual methodology to ensure compliance with GASB 101. The evaluation confirmed that leave types meeting the criteria for recognition—those attributable to past service, accumulating, and more likely than not to be used or paid—were properly identified.
The calculation methodology was refined to reflect current pay rates and to include applicable salary-related costs.
City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2025
-41-
1) ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
Cash and Cash Equivalents
For the 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, 2025
-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, 2025
-43-
1) ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
Capital Assets, (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
Right-to-use lease and subscription assets are amortized over the life of the associated contract using the straight-line method.
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, 2025, 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, 2025
-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. 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, 2025
-45-
1) ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
Pensions, (continued)
Generally accepted accounting principles 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, 2024
Measurement Period (MP) July 1, 2023 to June 30, 2024
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.
Generally accepted accounting principles 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, 2024
Measurement Period (MP) July 1, 2023 to June 30, 2024
Upcoming Accounting Pronouncements
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, 2025
-46-
2) CASH AND INVESTMENTS
Cash and investments are classified in the accompanying financial statements as follows:
Statement of net position:
Cash and investments $ 156,193,955
Cash and investments with fiscal agents 35,550,983
Statement of fiduciary net position:
Successor Agency to the Dissolved RDA
Cash and investments 945,623
Cash and investments with fiscal agents 11,057
Community Facilities District
Cash and investments 1,266,626
Cash and investments with fiscal agents 2,923,241
Total $ 196,891,485
Cash and investments as of June 30, 2025, consisted of the following:
Cash and cash equivalents:
Petty cash 3,489 $
Demand deposits - City 17,486,294 Demand deposits - Successor Agency 211,870 Total cash and cash equivalents 17,701,653 Investments:
Local Agency Investment Fund 75,089,873
Negotiable Certificates of Deposit 6,788,236 U.S. Treasury Securities 15,621,054 U.S. Government Bonds 2,450,228
Medium term corporate notes 494,135 Fidelity Money Market 45,648,872 Held by Bond Trustee 33,097,434 Total investments 179,189,832 Total 196,891,485 $
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, 2025
-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, 2025
-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, 2025:
Minimum
Legal
Investment Type Amount Rating Aaa-A Not Rated
External Investment Pools -
Local Agency Investment Fund $ 75,089,873 N/A $ - $ 75,089,873 Negotiable Certificates of Deposits 6,788,236 N/A 6,788,236 - U.S. Treasury Securities 15,621,054 15,621,054 - U.S. Government Bonds 2,450,228 N/A - 2,450,228 Medium term corporate notes 494,135 N/A - 494,135
Fidelity Money Market 45,648,872 N/A 45,648,872 - Held by Bond Trustee:
Money Market Mutual Funds 33,097,434 N/A 33,097,434 - Total Investments $ 179,189,832 $ 25,353,653 $ 153,836,179 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, 2025, 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, 2025
-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, 2025, 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, 2025, 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 75,089,873 $ - $ - $ 75,089,873 $ Negotiable Certificates of Deposits 331,436 6,456,800 - 6,788,236 U.S. Treasury Securities 15,621,054 - - 15,621,054 U.S. Government Bonds 246,656 2,203,572 - 2,450,228 Medium term corporate notes - 494,135 - 494,135 Fidelity Money Market 45,648,872 - - 45,648,872 Held by Bond Trustee:
Money Market Mutual Funds 33,097,434 - - 33,097,434 Total Investments $ 9,154,507 170,035,325 $ - $ 179,189,832 $ 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, 2025
-50-
2) CASH AND INVESTMENTS, (continued)
Fair Value Measurements
Generally accepted accounting standards establish a fair value hierarchy that 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, 2025:
Total Level 1 Level 2 Level 3
Negotiable Certificates of Deposit 6,788,236 $ - $ 6,788,236 $ - $ U.S. Treasury Securities 15,621,054 - 15,621,054 - U.S. Government Bonds 2,450,228 - 2,450,228 - Medium term corporate notes 494,135 - 494,135 - Total Investments by Fair Value Level 25,353,653 - $ 25,353,653 $ - $ Not subject to the Fair Value Hierarchy:
Local Agency Investment Fund 75,089,873 Fidelity Money Market 45,648,872 Held by Bond Trustee:
Money Market Mutual Funds 33,097,434
Total Investments $ 179,189,832
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, 2025
-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, 2025 were $5,433,402, $5,197,882 and $498,245, respectively.
Total principal and interest expected to maturity is as follows:
Governmental Activities
Principal Interest Total
Fiscal Year Payments Payments Payments
2026 405,583 $ 137,863 $ 543,446 $
2027 317,418 128,541 445,959 2028 291,095 121,232 412,327 2029 301,244 113,806 415,050
2030 311,745 106,110 417,855
2031 - 2035 1,208,085 425,326 1,633,411 2036 - 2040 1,091,476 267,485 1,358,961 2041 - 2045 1,035,475 136,741 1,172,216
2046 - 2049 471,281 18,717 489,998 Total Remaining Receivable $ 5,433,402 $ 1,455,821 $ 6,889,223 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, 2025
-52-
3) LEASES RECEIVABLE, (continued)
Business Activities
The City has entered into leases as a Lessor for the use of the 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, 2025 were $16,818,603, $16,125,340 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
2026 333,726 $ 427,512 $ 761,238 $
2027 342,280 418,957 761,237 2028 351,054 410,184 761,238 2029 360,053 401,185 761,238
2030 369,283 391,955 761,238
2031 - 2035 1,993,367 1,812,821 3,806,188 2036 - 2040 2,262,354 1,543,835 3,806,189 2041 - 2045 2,021,767 1,266,650 3,288,417
2046 - 2050 2,235,170 995,718 3,230,888
2051 - 2055 2,530,869 688,019 3,218,888
2056 - 2060 2,795,507 345,381 3,140,888
2061 - 2062 1,223,173 33,182 1,256,355
Total Remaining Receivable $ 16,818,603 $ 8,735,399 $ 25,554,002 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, 2025
-53-
4) CAPITAL ASSETS
Capital asset activity was as follows for the year ended June 30, 2025:
Governmental activities: Balance Transfers/ Balance
June 30, 2024 Additions Deletions June 30, 2025
Capital assets, not being depreciated/amortized:
Land $ 350,000 25,350,766 $ - $ 25,700,766 $
Construction in progress 20,625,627 16,311,546 (22,859,780) 14,077,393 Total capital assets, not being depreciated 41,662,312 20,975,627 (22,859,780) 39,778,159 Capital assets, being depreciated/amortized:
Structures and improvements - 55,113,808 - 55,113,808 Machinery and equipment:
City 170,755 12,361,011 (748,661) 11,783,105 Equipment replacement/vehicles 1,588,073 7,320,167 (1,197,843) 7,710,397 Parking Authority - structures - 17,199,243 (839,689) 16,359,554 Infrastructure 23,188,569 175,593,553 - 198,782,122 Right-to-use leases:
Equipment replacement/vehicles 325,632 - - 325,632 Right-to-use subscriptions 1,735,755 34,523 (34,523) 1,735,755 Investment in joint venture (RCC) 49,498 7,307,384 - 7,356,882 Total capital assets, being depreciated/amortized 27,058,282 274,929,689 (2,820,716) 299,167,255 Less accumulated depreciation/amortization for:
Structures and improvements (1,464,724) (37,736,245) - (39,200,969) Machinery and equipment:
City (590,922) (8,704,218) 760,693 (8,534,447) Equipment replacement/vehicles (578,211) (4,928,200) 1,197,843 (4,308,568) Parking Authority - structures (11,121) (16,214,655) - (16,225,776) Infrastructure (3,184,550) (72,613,020) - (75,797,570) Right-to-use leases Equipment replacement/vehicles (10,627) - - (10,627) Right-to-use subscriptions (826,689) (23,014) 34,523 (815,180) Investment in joint venture (RCC) (305,088) (4,049,886) - (4,354,974) Total accumulated depreciation and amortization (144,269,238) (6,971,932) 1,993,059 (149,248,111) Total capital assets, being depreciated/amortized, net 130,660,451 (827,657) 20,086,350 149,919,144 Total governmental activities $ 172,322,763 $ (23,687,437) 41,061,977 $ $ 189,697,303 City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2025
-54-
4) CAPITAL ASSETS, (continued)
Business-type activities: Balance Transfers/ Balance
June 30, 2024 Additions Deletions June 30, 2025
Capital assets, not being depreciated:
Land Land $ - 37,314 $ - $ 37,314 $
Construction in progress 2,326,813 681,585 - 3,008,398 Total capital assets, not being depreciated 718,899 2,326,813 - 3,045,712 Capital assets, being depreciated:
Structures and improvements 3,020,109 - - 3,020,109
Machinery and equipment 28,130 - 698,839 726,969
Infrastructure:
Airport 12,319,397 - - 12,319,397
Storm and sewer drain 14,917,102 - - 14,917,102
Total capital assets, being depreciated 698,839 30,284,738 - 30,983,577 Less accumulated depreciation for:
Structures and improvements (2,165,794) (51,395) - (2,217,189) Machinery and equipment (28,130) (38,610) - (66,740) Infrastructure:
Airport (6,073,619) - (306,871) (6,380,490)
Storm and sewer drain (11,265,162) (91,647) - (11,356,809) Total accumulated depreciation (488,523) (19,532,705) - (20,021,228) Total capital assets, being depreciated, net 210,316 10,752,033 - 10,962,349 Total business-type activities $ 2,537,129 11,470,932 $ - $ 14,008,061 $ Depreciation/amortization expense was charged to functions/programs of the primary government as follows:
Governmental Activities:
General government $ 1,671,670
Public safety 1,590,020
Public works 2,878,212
Community development 94,537
Parks and recreation 147,775
Internal service fund 589,718
Total depreciation/amortization expense – governmental activities $ 6,971,932 Business-type Activities:
Structures and improvements - Airport 51,395 $
Machinery and equipment - Sewer Storm and Drain 38,610
Infrastructure:
Airport 306,871
Sewer and Storm Drain 91,647 Total depreciation expense – business-type activities 488,523 $ City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2025
-55-
5) INTERFUND ACTIVITY
The following represents the City’s interfund activity for the fiscal year ended June 30, 2025.
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, 2025:
Receivable Fund Amount Payable Fund Amount
General Fund $ 11,212,181 Major Funds:
Hawthorne Housing Authority 334,736 $
CA Parks & Recreation
Community Center 3,610,607 Park Improvements 3,316,252
Non-Major Funds:
Street Lighting 464,053 Street 78,047 California Office of Traffic Safety 43,952 Community Development Block Grant 330,008 MTA Measure W 429,159 CA Parks & Recreation
Senior Center 214,464
HUD Community Development 464,410 Building Resilient
Infrastructure & Communities 275,649
Cannabis Retail Acess Grant 31,342 Recycling Fund 68,959 Homeland Security - StoneGarden 98,429
Social Security Administration 3,715 USDOT – SS4A 227,207 2019 Pension Obligation Bond 1,221,192 Totals 11,212,181 $ 11,212,181 $ 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, 2025
-56-
5) INTERFUND ACTIVITY, (continued)
Interfund Transfers
Funds Transfers in Transfers out
Major Funds:
General $ 41,494 $ 16,033,444
Hawthorne Housing Authority 113,855 - Park Improvements 411,721 - Civic Center Lease Bonds 1,500,000 - Non-Major Funds:
Street Lighting 26,544 - Gas Tax 1,667,992 - Street 289,264 1,500,000 Proposition A 43,782 - MTA Measure M 55,491 - MTA Measure R 42,343 - Proposition C 10,934 - Housing Asset 66,578 - HOME Grant 48,039 - CDBG 7,158 - MTA Measure W 62,214 - Capital Improvement Fund - 3,295,633 2016 Refunding Bonds 3,288,713 - 2016 Direct Placement Lease Financing 240,352 -
2019 Pension Obligation Bond 7,615,197 -
Internal Service Funds:
Equipment Replacement 98,364 - Hardware Replacement 53,143 1,000,000 Enterprise Funds:
Airport 160,216 - Sewer and Storm Drain 113,749 - Total transfers 18,893,110 $ 18,893,110 $ Transfer to the General Fund of $41,494 was Hawthorne Blvd property expenses and CFD administrative fees.
The transfer to the 2019 Pension Obligation Bond fund was to fund the debt services payments, including $6,694,597 from the General Fund, $79,515 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, 2025
-57-
5) INTERFUND ACTIVITY, (continued)
Interfund Transfers, (continued)
The transfer from the General Fund in the amount of $240,352 consists of debt service payments on the 2007 SBPRCA Series B bonds/2016 Direct Placement Leasing.
The transfer of $3,288,713 to the 2016 Refunding Bonds fund was for debt service payments, including $2,891,141 from the General Fund, $34,340 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 $1,500,000 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, 2025 Balance Balance Due Within
June 30, 2024 Additions Deletions June 30, 2025 One Year Governmental Activities:
Bonds Payable:
Governmental Funds:
2016 Direct Placement Lease Financing 1,301,850 $ - $ (205,850) $ 1,096,000 $ 207,100 $ 2016 Certificates of Participation 17,375,000 - (2,215,000) 15,160,000 2,290,000 Plus (less) deferred amounts:
Issuance premium 1,037,735 - (163,951) 873,784 163,951
Issuance discount - (50,985) 8,498 (42,487) (8,498) 2019 Pension Obligation Bonds - direct placement - 108,530,000 (2,930,000) 105,600,000 3,000,000 2024 Lease Revenue Bonds 26,950,000 - - 26,950,000 395,000 Issuance premium 3,489,453 - (101,776) 3,387,677 174,473 Total Bonds Payble 30,439,453 128,193,600 (5,608,079) 153,024,974 6,222,026 Direct Borrowing:
Governmental Funds:
Lease payable - 325,632 (13,583) 312,049 78,198 SBITA payable - 1,236,976 (375,555) 861,421 417,704 Total Governmental Funds - 1,562,608 (389,138) 1,173,470 495,902 Internal Service Funds:
SBITA payable 11,506 - (11,506) - - Total Internal Service Funds - 11,506 (11,506) - - Total Direct Borrowing 1,562,608 11,506 (400,644) 1,173,470 495,902 Total long-term debt $ 32,002,061 128,205,106 $ (6,008,723) $ 154,198,444 $ 6,717,928 $ The City has a legal debt limit of 15% of gross Assesed valuation, or $430,222,895 in fiscal year 2024-2025. 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, 2025
-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, 2025 is $1,175,853 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, 2025, are as follows:
2026 207,100 $ 29,044 $ 236,144 $
2027 23,556 213,150 236,706 2028 15,010 218,600 233,610 2029 9,150 223,700 232,850
2030 3,093 233,450 236,543
Total $ 79,853 1,096,000 $ 1,175,853 $
Interest Total
Year Ending
June 30, Principal
City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2025
-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, 2025 is $14,474,700 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, 2025 is $2,563,181 payable through 2027.
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, 2025
-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, 2025, are as follows:
Year Ending
June 30, Principal Interest Principal Interest Principal Interest 2026 - $ 505,800 $ 2,290,000 $ 44,525 $ 2,290,000 $ 550,325 $ 2027 2,145,000 462,900 225,000 3,656 2,370,000 466,556 2028 2,470,000 370,600 - - 2,470,000 370,600 2029 2,570,000 269,800 - - 2,570,000 269,800 2030 2,675,000 164,900 - - 2,675,000 164,900 2031 2,785,000 55,700 - - 2,785,000 55,700 Total $ 1,829,700 12,645,000 $ 2,515,000 $ 48,181 $ 15,160,000 $ 1,877,881 $ Series A Series B Total
City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2025
-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, 2025 is $160,156,651.
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, 2025
-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, 2025, are as follows:
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 3,330,000 3,342,269 6,672,269
2031-2035 18,230,000 15,132,851 33,362,851 2036-2040 21,525,000 11,833,600 33,358,600 2041-2045 25,730,000 7,643,098 33,373,098
2046-2049 24,315,000 2,383,066 26,698,066
Total $ 54,556,651 105,600,000 $ 160,156,651 $
Year Ending
June 30, Principal Interest Total
City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2025
-63-
6) LONG-TERM DEBT, (continued)
2024 Lease Revenue Bonds
In September 2024, the City issued $29,950,000 to provide funds to (a) pay a portion of the costs of construction and renovation of the city hall expansion and new civic center park, new public works yard, expanded senior center, police facility improvements, aquatics center and pool improvements, and certain other related capital improvements, and (b) pay cost of issuance of the Bonds. The bonds bear variable interest of 5% and are payable semiannually on May 1 and November 1 of each year, commencing May 1, 2025 until maturity or earlier redemption. The bonds mature in fiscal year 2055. Total principal and interest remaining on the bonds as of June 30, 2025 is $52,511,306.
The total debt service requirements to maturity as of June 30, 2025, are as follows:
2026 395,000 $ 1,452,306 $ 1,847,306 $
2027 415,000 1,327,750 1,742,750 2028 440,000 1,307,000 1,747,000 2029 460,000 1,285,000 1,745,000
2030 485,000 1,262,000 1,747,000
2031-2035 2,820,000 5,920,500 8,740,500
2036-2040 3,630,000 5,138,750 8,768,750
2041-2045 4,655,000 4,133,750 8,788,750
2046-2050 5,980,000 2,545,500 8,525,500
2051-2055 7,670,000 1,188,750 8,858,750
Total $ 25,561,306 26,950,000 $ 52,511,306 $
Total
Year Ending
June 30, Principal Interest
Lease Payable
As of June 30, 2025, the City had 7 active leases. The leases have payments that range from $1,483 to $4,455 and interest rates that range from 2.822% to 2.899%. As of June 30, 2025, the total combined value of the lease liability is $312,049. The combined value of the right to use asset, as of June 30, 2025 of $325,632 with accumulated amortization of $10,627, which is detailed in Note 4.
City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2025
-64-
6) LONG-TERM DEBT, (continued)
Lease Payable, (continued)
The following is a schedule by year of future minimum lease payments under the agreements as of June 30, 2025:
Year Ending
June 30, Principal Interest Total
2026 78,198 $ 7,804 $ 86,002 $
2027 80,443 5,559 86,002 2028 82,753 3,249 86,002
2029 70,655 896 71,551
Total $ 17,508 312,049 $ 329,557 $
Subscriptions Payable
Governmental Funds
As of June 30, 2025 the City had 14 active subscriptions. The subscriptions have payments that range from $5,616 to $101,417 and interest rates that range from 1.710% to 3.281%. As of June 30, 2025, the total combined value of the subscription liability is $861,421, and the total combined value of the short-term subscription liability is $417,704. The combined value of the right to use asset, as of June 30, 2025 of $1,735,755 with accumulated amortization of $815,180, which is detailed in Note 4.
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. The City is required to make annual fixed payments of $11,506. The subscription has an interest rate of 2.1840%.
This has been paid in full and the related right to use asset and accumulated amortization have been removed from the City’s capital assets.
The following is a schedule by year of future minimum subscription payments under the agreement as of June 30, 2025:
Year Ending
June 30, Principal Interest Total
2026 417,704 $ 23,260 $ 440,964 $
2027 357,754 11,489 369,243 2028 85,963 2,037 88,000 Total $ 36,786 861,421 $ 898,207 $ City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2025
-65-
7) COMPENSATED ABSENCES
The following is a summary of changes in compensated absences for the year ended June 30, 2025:
Balance Balance Due Within
June 30, 2024 Net Change June 30, 2025 One Year
Governmental Funds 8,026,448 $ 1,677,279 $ 9,703,727 $ 1,940,745 $ Internal Service Funds 44,769 22,302 67,071 13,414 Business-Type Activities 120,015 15,063 135,078 27,016 Total compensated absences $ 1,714,644 8,191,232 $ 9,905,876 $ 1,981,175 $ 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. 8) CLAIMS AND JUDGMENTS
The following is a summary of changes in claims and judgments for the year ended June 30, 2025:
Balance Balance Due Within
June 30, 2024 Additions Deletions June 30, 2025 One Year Internal Service Funds:
Claims and judgements $ - 6,594,710 $ (117,721) $ 6,476,989 $ 1,295,398 $ As of June 30, 2025, 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, 2025, total estimated claims payable were $6,476,989 See note 14 for more information.
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City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2025
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9) NON-CITY OBLIGATION DEBT - SPECIAL ASSESSMENT BONDS
Assessment District Bonds
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, 2025, the bonds outstanding from this Community Facility District totaled $2,240,000.
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 Refunding 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, 2025, the bonds outstanding from this Community Facility District totaled $7,340,000.
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, 2025
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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, 2025 are presented below:
Governmental Business-Type
Activities Activities Total
Net Investment in Capital Assets:
Capital assets, net of accumulated depreciation 186,695,395 $ 14,008,061 $ 200,703,456 $ Less capital related debt balances:
2016 Direct Placement Lease Financing (1,096,000) - (1,096,000) 2016 Certificate of Participation - Series A (15,160,000) - (15,160,000) 2024 Lease Revenue Bonds (26,950,000) - (26,950,000) Plus unspent portion 30,149,018 - 30,149,018 Plus (less) deferred amounts:
Issuance premium (4,261,461) - (4,261,461)
Issuance discount 42,487 - 42,487 Leases payable (312,049) - (312,049) Subscriptions payable (861,421) - (861,421) - (18,449,426) (18,449,426) Total Net Investment in Capital Assets 168,245,969 14,008,061 182,254,030 Restricted for:
Public safety 1,821,431 - 1,821,431 Community development 8,682,362 - 8,682,362 Parks and recreation 451,871 - 451,871 Public works 20,289,154 - 20,289,154 Capital improvements 9,316,338 - 9,316,338 Debt service 31,981,905 - 31,981,905 Total Restricted 72,543,061 - 72,543,061 Unrestricted (154,949,808) 3,591,911 (151,357,897) Total $ 17,599,972 85,839,222 $ 103,439,194 $ 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, 2025
-68-
11) RETIREMENT PLANS, (continued)
A) General Information about the Pension Plans, (continued) Miscellaneous – Agent, Multiple-Employer Defined Benefit Pension Plan The Plan is an agent multiple-employer defined benefit pension plan administered by the California Public Employees’ Retirement System (CalPERS). 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, 2023 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.
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 or PERF C) administered by the California Public Employees’ Retirement System (CalPERS.) The Plan consists of a miscellaneous pool and a safety pool (also referred to as “risk pools”), which are comprised of individual employer miscellaneous and safety rate plans, respectively. 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 generally accepted accounting principles. Individual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools. The City participates in two safety plans in safety risk pools. Benefit provisions under the Plan are established by State statute and 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 five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 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, 2025
-69-
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, 2025, are summarized as follows:
Miscellaneous
Hire date
Prior to
January 1, 2013
On or after
January 1, 2013
Benefit formula 3% @ 60 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 3.0% 1.0% to 2.5% Required employee contribution rates 8.000% 7.500%
Required employer contribution rates 13.38% 13.38%
Safety
Hire date
Prior to
January 1, 2013
On or after
January 1, 2013
Benefit formula 3% @ 50 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 9.00% 14.50%
Required employer contribution rates 29.30% 14.72%
Employees Covered
As of June 30, 2023 (valuation date), the following employees were covered by the benefit terms:
Miscellaneous Safety
Inactive employees or beneficiaries
currently receiving benefits 360 250
Inactive employees entitled to but
not yet receiving benefits 295 47
Active employees 178 82
Total 379 833
City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2025
-70-
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 are 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 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, 2025, were $3,611,272.
Safety – Cost Sharing, Multiple-Employer Defined Benefit Pension Plan 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, 2025 were $5,657,559.
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, 2024, using an annual actuarial valuation as of June 30, 2023 rolled forward to June 30, 2024 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is as follows.
City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2025
-71-
11) RETIREMENT PLANS, (continued)
B) Net Pension Liability, (continued)
Actuarial Methods and Assumptions Used to Determine Total Pension Liability Valuation Date June 30, 2023
Measurement Date June 30, 2024
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% thereafter.
(1) The mortality table used was developed based on CalPERS-specific data. The rates incorporate Generational Mortality to capture ongoing mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details, please refer to the 2021 experience study report from November 2021 that can be found on the CalPERS website.
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.
City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2025
-72-
11) RETIREMENT PLANS, (continued)
B) Net Pension Liability, (continued)
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 2021-22 Asset Liability Management study. 1 An expected inflation of 2.30% used for this period.
Discount Rate
The discount rate used to measure the total pension liability for PERF C 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.
City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2025
-73-
11) RETIREMENT PLANS, (continued)
B) Net Pension Liability, (continued)
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.
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: 6/30/2023 (VD) $ 232,302,593 $ 217,628,277 $ 14,674,316 Changes Recognized for the
Measurement Period:
Service Cost 2,830,458 - 2,830,458
Interest on the total pension liability 15,648,199 - 15,648,199 Changes in benefit terms - - - Differences between expected and actual experience (518,345) - (518,345) Contributions from the employer - 1,970,337 (1,970,337) Contributions from employees - 1,147,931 (1,147,931) Net investment income - 20,213,228 (20,213,228) Benefit payments, including refunds of
employee contributions (12,827,967) (12,827,967) - Administrative expense - (177,085) 177,085 Net Changes during 2022-23 5,132,345 10,326,444 (5,194,099) Balance at: 6/30/2024 (MD) $ 237,434,938 $ 227,954,721 $ 9,480,217 Increase (decrease)
City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2025
-74-
11) RETIREMENT PLANS, (continued)
C) Proportionate Share of Net Pension Liability
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: 6/30/2023 (VD) 269,811,532 $ 251,688,792 $ 18,122,740 $ Balance at: 6/30/2024 (MD) 284,315,083 267,774,047 16,541,036 Net Changes during 2023-24 $ 16,085,255 14,503,551 $ (1,581,704) $ 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, 2023 and 2024 measurement dates was as follows:
Safety
Proportionate Share of NPL - June 30, 2023 0.24245%
Proportionate Share of NPL - June 30, 2024 0.22687%
Change - decrease (0.01558%)
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City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2025
-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 $ 9,480,217 39,690,357 $ (15,476,305) $ Safety Plan's Net
Pension Liability $ 16,541,036 55,378,203 $ (15,222,307) $ Amortization of Deferred Outflows and Deferred Inflows of Resources 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, 2025
-76-
11) RETIREMENT PLANS, (continued)
D) Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions
As of the start of the measurement period (July 1, 2023), the City’s total net pension liability was $32,797,056. For the measurement period ending June 30, 2024 (the measurement date), the City incurred a total pension expense of $14,168,163. 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.
Miscellaneous – Agent, Multiple-Employer Defined Benefit Pension Plan As of the start of the measurement period (July 1, 2023), the net pension liability was $14,674,316. For the measurement period ending June 30, 2024 (the measurement date), the City incurred a pension expense of $5,371,594 for the miscellaneous plan. A complete breakdown of the pension expense is as follows:
Description Amount
Service cost 2,830,458 $
Interest on the total pension liability 15,648,199 Changes of benefit terms - Recognized changes of assumptions 1,259,467 Differences between expected and actual experience 745,673 Contributions - employees (1,147,931) Projected earnings on pension plan investments (14,663,093) Recognized differences between projected and actual earnings on plan investments 521,736 Administrative expenses 177,085 Total Pension Expense $ 5,371,594
Safety – Cost Sharing, Multiple-Employer Defined Benefit Pension Plan As of the start of the measurement period (July 1, 2023), the net pension liability for the safety plan was $18,122,740. For the measurement period ending June 30, 2024 (the measurement date), the City incurred a pension expense of $8,796,569 for the safety plan.
City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2025
-77-
11) RETIREMENT PLANS, (continued)
D) Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions, (continued)
As of June 30, 2025, 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 346,162 $ 302,368 $ 1,349,896 $ 43,891 $ Changes of Assumptions - - 407,537 - Net Difference between Projected and Actual Earnings on Pension Plan
Investments 4,021,496 - 799,518 - Change in Employer's Proportion - - 9,434,517 - Difference in Actual vs Projected Contributions - - - 10,664,331 Pension Contributions Subsequent to Measurement Date 3,611,272 - 5,657,559 - Total $ 7,978,930 $ 302,368 $ 17,649,027 $ 10,708,222 Miscellaneous Safety
These amounts above are net of outflows and inflows recognized in the 2023/24 measurement period expense. The $3,611,272 and $5,657,559 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
2026 (10,217) $ 2,021,475 $
2027 5,983,491 178,685 2028 (797,957) (643,354) 2029 (1,110,027) (273,560) 2030 - - Thereafter - - Deferred Outflows/(Inflows) of
Resources, Net
E) Payable to the Pension Plan
As of June 30, 2025, 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, 2025
-78-
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, 2025
-79-
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 289
Inactive employees or beneficiaries currently receiving benefits 259 Inactive employees entitled to but not yet receiving benefit payments 56 Total 604
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 2024-25, the City paid $8,468,419 for other postemployment benefits, of which $3,027,419 was for health insurance benefits and $4,850,000 was for Trust contributions, and $591,000 in implicit subsidy benefit payments.
Actuarial Methods and Assumptions Used to Determine Total OPEB Liability The City’s total OPEB liability was measured as of June 30, 2024 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, 2024 total OPEB liability, based on the following actuarial methods and assumptions:
Actuarial Assumptions June 30, 2024 Measurement Date (MD) Actuarial Valuation Date June 30, 2023
Contribution Policy Ad-hoc contributions to trust, benefit payments outside of trust Discount Rate 4.53% at MD June 30, 2024, 4.27% at MD June 30, 2023 (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, 2025
-80-
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 4.53% was used in the valuation for measurement date June 30, 2024. This was updated from 4.27%.
Changes In Assumptions
The changes in assumptions as of the measurement date of June 30, 2024, were: The discount rate was updated based on crossover test from 4.27% to 4.53%, the municipal bond rate and the medical trend rate were updated.
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City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2025
-81-
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, 2024
(6/30/2023 measurement date) $ 3,693,288 104,312,362 $ 100,619,074 $ Changes recognized for
the measurement period:
Service cost - 3,170,778 3,170,778
Interest - 4,520,973 4,520,973
Changes of assumptions - (3,679,915) (3,679,915) Contributions – employer 4,220,745 - (4,220,745) Net investment income 513,277 - (513,277) Benefit payments (3,211,093) (3,211,093) - Administrative expense (19,664) - 19,664 Net change 1,503,265 800,743 (702,522) Balance at June 30, 2025 (6/30/2024 measurement date) $ 5,196,553 105,113,105 $ 99,916,552 $ 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, 2024:
Current
1% Decrease Discount Rate 1% Increase
3.53% 4.53% 5.53%
Total OPEB Liability 116,875,184 $ 99,916,552 $ 86,348,785 $ City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2025
-82-
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, 2024:
1% Decrease
Current Healthcare
Cost Trend Rates 1% Increase
Total OPEB Liability $ 99,916,552 85,137,896 $ 118,608,423 $ 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, 2025, the City recognized OPEB expense of $3,226,609 with details as follows:
Description Amount
Service Cost 3,170,778 $
Interest 4,520,973 Projected Earnings on Investments (224,726) Administrative Expenses 19,664 Recognition of deferred outflows/(inflows):
Plan Experience (2,021,010) Assumption Changes (2,166,593) Asset returns (72,477) Total OPEB Expense (Income) $ 3,226,609 City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2025
-83-
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, 2025, 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 4,370,926 $ 4,072,438 $ Changes of assumptions 2,539,115 22,035,598
Net difference between projected and actual earnings
on OPEB plan investments - 275,140
Contributions to OPEB plan subsequent to measurement date - 8,468,419 Total $ 26,383,176 15,378,460 $
The $8,468,419 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2024 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
2026 (6,613,631) $
2027 (7,501,035) 2028 (4,159,871)
2029 (691,023) 2030 (507,575)
Thereafter: -
City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2025
-84-
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 $6,476,989 reported in the Insurance Reserve Fund at June 30, 2025, 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 2023, 2024, and 2025, were as follows:
Beginning Changes in Claims Ending Due within
Fiscal Year Balance Estimates Payments Balances One Year 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 2024-2025 6,594,710 - (117,721) 6,476,989 1,295,398 City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2025
-85-
14) COMMITMENT AND CONTINGENCIES
Construction Commitments
The following construction commitments existed at June 30, 2025:
Remaining Commitments
as of June 30, 2025
Non-major Funds 234,692 $
Internal Service Funds:
Equipment Replacement 377,019 Enterprise Funds:
Airport 1,117 $ 612,828
Fund
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, 2025
-86-
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 2024-25, the City was assessed $3,061,676, 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, 2025, SBRPCA's preliminary financial information is as follows:
Net Position
Total assets 16,646,321 $
Total deferred outflows of resources 5,229,661 Total liabilities (12,488,175) Total deferred inflows of resources (2,317,166) Total net position 7,070,641 $ Change in Net Position
Operating revenues 14,360,147 $
Operating expenses (13,008,602) Operating income 1,351,545 Nonoperating revenues (expenses) 529,944 Change in net position 1,881,489 Beginning net position 5,189,152 Ending net position 7,070,641 $
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, 2025
-87-
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, 2025
Deferred outflows of resources
Unamortized loss on defeasance of debt 184,487 $
Governmental
Funds
at June 30, 2025
Deferred inflows of resources
Unavailable Revenue - Receivables that were not
received within the availability period and were
not recognized as revenues 8,952,748 $
Refer to Note 12 for deferred outflows and inflows of resources related to pensions and Note 13 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, 2025
-88-
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, 2025
-89-
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, 2025, the City abated TOT taxes totaling $1,764,033 under this agreement.
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Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2025
-90-
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, 2025:
Balance Balance Due Within
June 30, 2024 Additions Deletions June 30, 2025 One Year Bonds payable - Direct placement
Tax allocation bonds - 2016 17,435,000 $ - $ (17,435,000) $ - $ - $ Plus deferred amounts:
Issuance premium 3,229,014 - (3,229,014) - - Tax allocation bonds - 2025 - 13,540,000 - 13,540,000 - Plus deferred amounts:
Issuance premium - 1,423,386 - 1,423,386 - Total bonds payable 20,664,014 14,963,386 (20,664,014) 14,963,386 - Notes payable - Direct borrowing 33,061,331 1,125,000 (1,044,626) 33,141,705 - Total $ 16,088,386 53,725,345 $ (21,708,640) $ 48,105,091 $ - $ 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, 2025, the bonds were refunded with the 2025 Tax Allocation Bonds.
City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2025
-91-
18) SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY, (continued)
Disclosure of Successor Agency Debts, (continued)
2025 Tax Allocation Bonds
In June 2025, The Successor Agency issued $13,540,000 to provide funds to (a) refund the Successor Agency’s Subordinate Tax Allocation Refunding Bonds, Series 2016, outstanding in the principal amount of $15,625,000, the proceeds of which were used to refinance redevelopment activities of the former Community Redevelopment Agency of the City of Hawthorne (the “Former Agency”), (b) purchase a debt service reserve insurance policy for the Bonds, and (c) pay costs of issuance of the Bonds. The bonds bear variable interest of 5% and are payable semiannually on March 1 and September 1 of each year, commencing March 1, 2026 until maturity. The refunding of the bonds reduced the total debt service payments by $1,311,264 and to obtain an economic gain of $1,081,883. The bonds mature in fiscal year 2037.
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.
The bonds do not contain a provision allowing for the acceleration of the Bonds following an Event of Default.
The following schedule summarizes the debt service to maturity requirements for bonds outstanding as of June 30, 2025:
2026 $ 460,736 - $ 460,736 $
2027 655,875 845,000 1,500,875 2028 609,375 1,015,000 1,624,375 2029 557,500 1,060,000 1,617,500
2030 503,250 1,110,000 1,613,250
2031-2035 1,601,500 6,460,000 8,061,500
2036-2037 3,050,000 154,500 3,204,500
Total $ 4,542,736 13,540,000 $ 18,082,736 $
Total
Year Ending
June 30, Principal Interest
City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2025
-92-
18) SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY, (continued)
Disclosure of Successor Agency Debts, (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 canceled 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, 2025, the outstanding balance on this note totaled $33,141,705.
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.
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City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2025
-93-
19) OTHER REQUIRED DISCLOSURES
Deficit in Fund Balance
The following funds have deficits in fund balance or net position at June 30, 2025:
Fund Amount
Major Governmental Funds:
Special Revenue Funds:
CA Parks & Recreation-Community Center (3,664,957) $
Park Improvements (3,569,467) Nonmajor Governmental Funds:
Special Revenue Funds:
Street Lighting (460,746) Street (417,951)
California Office of Traffic Safety (53,058) HOME Grant (1,693,976) Community Development Block Grant (686,065) MTA Measure W (442,325) CA Parks & Recreation Senior Center (215,435)
HUD Community Development (428) Building Resilient Infrastructure & Communities (275,649) Cannabis Retail Access Grant (44,345) Recycling Fund (70,337) Homeland Security - StoneGarden (78,879)
USDOT – SS4A (227,207) Debt Service Fund:
2019 Pension Obligation Bon (1,221,186)
Internal Service Fund:
Insurance Reserve (6,543,168)
The City intends to fund these deficits with future revenue, transfers and reductions of expenditures/expenses.
City of Hawthorne
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2025
-94-
20) RESTATEMENT OF BEGINNING BALANCES
Due to the reclassification from major fund to nonmajor fund and vice versa, the beginning fund balance was restated.
Net position/fund Net position/fund
balance June 30, 2025 Change from/to balance June 30, 2025 as previously reported nonmajor/major as restated/adjusted Governmental funds
Major funds:
CA Parks & Recreation
- Community Center $ (923,820) - $ (923,820) $
Park Improvements - (220,262) (220,262) Nonmajor funds 27,288,574 (445,890) 26,842,684 Total governmental funds $ (1,589,972) 27,288,574 $ 25,698,602 $ The City also separated the fund presentation of the Asset Forfeiture Fund into Asset Forfeiture Fund, the Asset Forfeiture - Justice Fund and the Homeland Security/Treasury Forfeiture Fund in fiscal year ended June 30, 2025. The net change to the beginning fund balance for the nonmajor funds is zero.
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REQUIRED SUPPLEMENTARY
INFORMATION
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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.
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City of Hawthorne
Required Supplementary Information
Budgetary Comparison Schedule by Department
General Fund
For the Fiscal Year Ended June 30, 2025
-96-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Taxes $ 94,124,937 97,478,911 $ 98,138,428 $ 4,013,491 $ Licenses and permits 2,058,419 1,858,419 1,885,304 (173,115) Intergovernmental 1,466,000 1,690,950 1,884,985 194,035 Charges for services 4,618,500 5,368,900 6,315,694 946,794 Fines and forfeitures 3,200,000 3,200,000 2,168,952 (1,031,048) Use of money and property 3,500,000 1,500,000 5,275,216 1,775,216 Contributions 200,000 200,000 200,000 - Miscellaneous 2,392,912 1,882,331 2,569,034 176,122 Total revenues 112,536,118 112,204,161 118,437,613 5,901,495 Expenditures Current:
General government:
Mayor and City Council 9,541,828 8,812,681 9,677,605 (135,777) City clerk 446,175 446,563 357,770 88,405 City manager 950,213 962,222 618,657 331,556 City treasurer 54,888 52,366 52,940 1,948 City attorney 1,443,354 1,270,645 1,442,601 753 Administrative services 11,593,471 11,670,122 10,839,811 753,660 Public safety:
Police 65,473,611 67,252,731 63,063,778 4,188,953 Community development:
Planning 2,765,097 2,680,848 2,265,803 499,294 Building and safety 1,354,634 1,336,226 1,225,734 128,900 Parks and recreation 5,809,700 5,849,039 5,250,375 559,325 Public works 3,836,972 3,747,190 2,051,545 1,785,427 Capital outlay 856,091 24,720 848,008 8,083 Total expenditures 105,905,154 102,326,233 97,694,627 8,210,527 Excess (deficiency) of revenues over (under) expenditures 9,877,928 6,630,964 20,742,986 14,112,022 Other Financing Sources (Uses) Subscription acquisition 481,964 - 492,800 10,836 Transfers in 42,493 3,000,000 41,494 (999) Transfers out (7,623,630) (11,536,937) (16,033,444) (4,496,507) Total other financing sources (uses) (4,623,630) (11,012,480) (15,499,150) (4,486,670) Net change in fund balance 5,254,298 (4,381,516) 5,243,836 9,625,352 Fund Balance Beginning 109,473,673 109,473,673 109,473,673 - Ending $ 114,727,971 $ 105,092,157 $ 114,717,509 $ 9,625,352 Budgeted Amounts
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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.
California Parks & Recreation Community Center Fund is used to account for grant funding to rehabilitate the city’s community center.
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City of Hawthorne
Required Supplementary Information
Budgetary Comparison Schedule
Hawthorne Housing Authority Special Revenue Fund
For the Fiscal Year Ended June 30, 2025
-98-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Intergovernmental $ 12,375,267 12,375,267 $ 12,160,068 $ (215,199) $ Charges for services 1,097,185 1,097,185 856,853 (240,332) Use of money and property - - 115 115 Miscellaneous 16,484 16,484 5,150 (11,334) Total revenues 13,488,936 13,488,936 13,022,186 (466,750) Expenditures Current:
Community development 13,551,287 13,502,087 12,708,993 842,294 Community services 3,400 3,400 2,781 619 Total expenditures 13,554,687 13,505,487 12,711,774 842,913 Excess (deficiency) of revenues over (under) expenditures (16,551) (65,751) 310,412 376,163 Other Financing Uses Transfers out (146,183) (146,183) (113,855) 32,328 Total other financing uses (146,183) (146,183) (113,855) 32,328 Net change in fund balance (211,934) (162,734) 196,557 408,491 Fund Balance Beginning 432,928 432,928 432,928 - Ending 270,194 $ 220,994 $ 629,485 $ 408,491 $ Budgeted Amounts
City of Hawthorne
Required Supplementary Information
Budgetary Comparison Schedule
American Rescue Plan Act Fund
For the Fiscal Year Ended June 30, 2025
-99-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Intergovernmental $ - - $ 4,223,722 $ 4,223,722 $
Use of money and property - - (833,344) (833,344) Total revenues - - 3,390,378 3,390,378 Expenditures Current:
General government: 7,248,392 8,170,990 4,223,722 3,024,670 Public safety 2,230,182 2,230,182 - 2,230,182 Total expenditures 9,478,574 10,401,172 4,223,722 5,254,852 Net change in fund balance (10,401,172) (9,478,574) (833,344) 8,645,230 Fund Balance
Beginning 833,344 833,344 833,344 - Ending $ (9,567,828) $ (8,645,230) $ - $ 8,645,230 Budgeted Amounts
City of Hawthorne
Required Supplementary Information
Budgetary Comparison Schedule
CA Parks & Recreation Community Center Special Revenue Fund For the Fiscal Year Ended June 30, 2025
-100-
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 - - 74,171 (74,171) Parks and recreation 4,913,864 4,913,864 146,726 4,767,138 Capital outlay - 218,211 2,520,240 (2,302,029) Total expenditures 4,913,864 5,132,075 2,741,137 2,390,938 Net change in fund balance 86,136 (132,075) (2,741,137) (2,609,062) Fund Balance (Deficit) Beginning - - (923,820) (923,820) Ending 86,136 $ (132,075) $ (3,664,957) $ (3,532,882) $ Budgeted Amounts
City of Hawthorne
Required Supplementary Information
Schedule of Changes in Net Pension Liability and Related Ratios Last Ten Years
-101-
Measurement Period 2014-15 2015-16 2016-17 2017-18
TOTAL PENSION LIABILITY
Service Cost 2,320,007 $ 2,435,899 $ 2,423,798 $ 2,499,955 $ Interest 12,647,730 13,024,281 13,232,559 13,468,820 Changes of Benefit Terms - - - - Difference Between Expected and Actual Experience (3,637,760) (990,439) (1,869,811) (1,608,731) Changes of Assumptions (3,045,664) - 10,775,154 (888,445) Benefit Payments, Including Refunds of Employee Contributions (8,707,272) (9,518,736) (9,562,803) (10,222,978) Net Change in Total Pension Liability (422,959) 4,951,005 14,998,897 3,248,621 Total Pension Liability - Beginning 175,206,854 174,783,895 179,734,900 194,733,797 Total Pension Liability - Ending (a) 174,783,895 179,734,900 194,733,797 197,982,418
PLAN FIDUCIARY NET POSITION
Contributions - Employer 2,628,948 2,956,754 3,304,427 3,987,019 Contributions - Employee 1,100,494 1,074,004 973,001 990,915 Net Investment Income 3,019,296 700,955 14,402,918 11,595,557 Benefit Payments, Including Refunds of Employee Contributions (8,707,272) (9,518,736) (9,562,803) (10,222,978) Net Plan to Plan Resource Movement (36,608) - - (341) Administrative Expenses (154,341) (83,347) (194,723) (219,421) Other Miscellaneous Income/(Expense)1 - - - (416,685)
Net Change in Fiduciary Net Position (2,149,483) (4,870,370) 8,922,820 5,714,066 Plan Fiduciary Net Position - Beginning2 136,757,973 138,907,456 131,887,603 140,810,423 Plan Fiduciary Net Position - Ending (b) 136,757,973 131,887,603 140,810,423 146,524,489 Plan Net Position Liability / (Asset) - Ending (a) - (b) 38,025,922 $ 47,847,297 $ 53,923,374 $ 51,457,929 $ Plan Fiduciary Net Position as a Percentage of the Total Pension Liability / (Asset) 78.24% 73.38% 72.31% 74.01%
Covered Payroll3$ 14,172,919 13,145,259 $ 12,670,141 $ 12,808,459 $ Plan Net Pension Liability / (Asset) as a Percentage of Covered Payroll 289.27% 337.60% 425.59% 401.75% 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 2.80 percent payroll growth assumption for fiscal years ended June 30, 2022-24; 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-21; 3 percent payroll growth assumption for fiscal years ended June 30, 2015-17.
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-
2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
$ 2,391,450 2,467,368 $ 2,478,272 $ 2,662,009 $ 2,664,738 $ 2,830,458 $ 14,191,317 13,791,792 14,602,910 14,801,624 15,327,104 15,648,199 - - - - 226,510 -
154,829 (1,116,355) 699,629 (961,116) 2,653,910 (518,345) - - - 6,297,331 - -
(11,161,427) (10,415,096) (11,977,102) (12,481,867) (12,977,655) (12,827,967) 5,576,169 4,727,709 5,803,709 10,317,981 7,894,607 5,132,345 197,982,418 202,710,127 208,286,296 214,090,005 224,407,986 232,302,593 202,710,127 208,286,296 214,090,005 224,407,986 232,302,593 237,434,938 57,022,354 4,555,596 1,612,478 1,599,394 2,001,272 1,970,337 1,002,245 997,444 1,047,853 984,017 1,106,404 1,147,931 9,133,158 9,470,424 45,476,553 (17,954,498) 12,895,701 20,213,228 (11,161,427) (10,415,096) (11,977,102) (12,481,867) (12,977,655) (12,827,967) - (581) - - - -
(212,912) (104,563) (206,592) (151,228) (157,925) (177,085) - 341 - - - -
4,503,565 55,783,418 35,953,190 (28,004,182) 2,867,797 10,326,444 151,028,054 146,524,489 206,811,472 242,764,662 214,760,480 217,628,277 206,811,472 151,028,054 242,764,662 214,760,480 217,628,277 227,954,721 $ 1,474,824 51,682,073 $ (28,674,657) $ 9,647,506 $ 14,674,316 $ 9,480,217 $
74.50% 99.29% 113.39% 95.70% 93.68% 96.01%
$ 12,358,915 12,552,747 $ 12,768,014 $ 12,798,121 $ 12,873,129 $ 14,116,999 $ 411.72% 11.93% -224.58% 75.38% 113.99% 67.15%
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
6/30/2016 6/30/2015 2,956,754 $ (2,956,754) $ - $ 12,670,141 $ 23.34% 6/30/2017 6/30/2016 3,304,427 (3,304,427) - 12,808,459 25.80% 6/30/2018 6/30/2017 3,987,019 (3,987,019) - 12,552,747 31.76% 6/30/2019 6/30/2018 4,555,596 (4,555,596) - 12,358,915 36.86% 6/30/2020 6/30/2019 5,392,780 (57,022,354) (51,629,574) 12,768,014 42.24% 6/30/2021 6/30/2020 1,612,478 (1,612,478) - 12,798,121 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) - 14,116,999 15.21% 6/30/2025 6/30/2024 2,686,318 (3,611,272) (924,954) 14,228,821 18.88% 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, 2022 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 and Review of Actuarial Assumptions . Mortality rates incorporate full 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)
6/30/2015 0.60260% 41,362,512 $ 9,859,032 $ 419.54% 78.40% 6/30/2016 0.61630% 53,325,378 9,229,395 577.78% 74.06%
6/30/2017 0.61251% 60,744,172 8,569,976 708.80% 73.31%
6/30/2018 0.63994% 61,666,264 7,590,002 812.47% 75.26%
6/30/2019 0.64788% 66,388,233 10,129,496 655.40% 75.26% 6/30/2020 0.02863% 3,115,161 8,106,797 38.43% 75.10%
6/30/2021 -0.63645% (34,421,128) 8,335,602 -412.94% 88.29% 6/30/2022 0.09501% 10,974,696 9,084,823 120.80% 76.68%
6/30/2023 0.24245% 18,122,740 8,621,419 210.21% 76.21%
6/30/2024 0.22687% 16,541,036 8,858,957 186.72% 78.08%
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
6/30/2016 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% 6/30/2025 6/30/2024 4,304,114 (5,657,559) (1,353,445) 10,045,846 42.84% Notes to Schedule:
Changes in Assumptions: There were no assumption changes in 2023 or 2024. 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, and 7.65% for measurement dates June 30, 2015, through June 30, 2016.
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 $ 32,583,616 $ 13% 2025 8,583,000 (8,468,419) 114,581 36,480,635 23%
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
17-year fixed period for 2024-25
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
4.53%
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 4.27% to 4.53%, 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
Measurement Period 2016-17 2017-18 2018-19 2019-20
Total OPEB Liability
Service cost 4,251,000 $ 3,574,000 $ 3,405,180 $ 3,555,411 $ Interest 3,360,000 3,863,000 4,148,492 3,830,827 Differences between expected and actual experience - - (8,450,705) - Changes of assumptions (14,185,000) (5,105,000) 5,945,521 27,930,290 Benefit payments (2,713,000) (2,806,000) (2,926,000) (2,959,379) Net change in total OPEB liability (9,287,000) (474,000) 2,122,488 32,357,149 Total OPEB liability - beginning 115,015,000 105,728,000 105,254,000 107,376,488 Total OPEB liability - ending 105,728,000 $ 105,254,000 $ 107,376,488 $ 139,733,637 $ Plan Fiduciary Net Position (2)
Contributions – employer - - - - Net investment income - - - - Benefit payments - - - - Administrative expense - - - - Net change in plan fiduciary net position - - - - Plan fiduciary net position - beginning - - - - Plan fiduciary net position - ending (b) - - - - Net OPEB liability - ending (a) - (b) $ 105,728,000 $ 105,254,000 $ 107,376,488 $ 139,733,637 Plan fiduciary net position as a percentage
of the total OPEB liability 0.0% 0.0% 0.0% 0.0%
Covered-employee payroll (1) $ 25,246,508 24,186,000 $ 25,373,487 $ 27,111,119 $ Total OPEB liability as a percentage of covered-employee payroll (1) 437.1% 416.9% 423.2% 515.4% 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 coveredemployee 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. (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.
In fiscal year ended June 30, 2025 (Measurement date June 30, 20234, the discount rate was updated to 4.53% from prior years' rate of 4.27% *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.
-108-
2021-22 2022-23 2023-24 2024-25
2020-21 2021-22 2022-23 2023-24
$ 4,500,230 5,252,506 $ 3,198,898 $ 3,170,778 $
2,693,466 3,168,811 3,621,358 4,520,973
- (14,253,534) 6,671,414 -
(25,044,228) (8,870,441) (6,663,008) (3,679,915)
(3,263,442) (3,202,013) (3,231,292) (3,211,093)
(21,113,974) (17,904,671) 3,597,370 800,743
139,733,637 121,828,966 100,714,992 104,312,362
$ 121,828,966 $ 100,714,992 $ 104,312,362 $ 105,113,105 - - 6,740,492 4,220,745
- - 198,459 513,277
- - (3,231,292) (3,211,093)
- - (14,371) (19,664)
- - 3,693,288 1,503,265
- - - 3,693,288
- - 3,693,288 5,196,553 $ 121,828,966 $ 100,714,992 $ 100,619,074 $ 99,916,552
0.0% 0.0% 3.5% 4.9%
$ 31,883,839 27,282,854 $ 32,583,616 $ 36,480,635 $
446.5% 315.9% 308.8% 273.9%
City of Hawthorne
Notes to Required Supplementary Information
June 30, 2025
-109-
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: Hawthorne Boulevard Mobility Improvement Program, CARES Act, LEAP Grant, Homeless Prevention and Rapid Re-housing Program (HPRP), Edward Byrne Memorial Justice Assistance Program, Building Resilient Infrastructure & Communities, and the American Down Payment Dream Program.
The remainder of this page has been left blank intentionally.
City of Hawthorne
Notes to Required Supplementary Information
June 30, 2025
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Excess of Expenditures over Appropriations
Excesses of expenditures over appropriations at the department level are as follows:
Fund Appropriations Expenditures Excess
Major Governmental Fund
General Fund:
General government:
Mayor and City Council 9,541,828 $ 9,677,605 $ (135,777) $ CA Parks & Recreation Community Center:
Community development - 74,171 (74,171) Capital outlay 218,211 2,520,240 (2,302,029) Park Improvements Community development 231,756 328,789 (97,033) Civic Center Lease Bonds Interest and fiscal charges - 778,556 (778,556) Bond issuance costs - 439,453 (439,453) Nonmajor Governmental Funds
Special Revenue Fund:
Street Lighting
Public works 845,478 970,312 (124,834) Asset Forfeiture Capital outlay 837,713 840,175 (2,462) MTA Measure R
Capital outlay 970,000 970,996 (996) SB1383 Local Assistance Grant Community development 100,000 128,291 (28,291) Permanent Local Housing Allocation Community development 347,488 740,624 (393,136) LA Centers for Alcohol and Drug Abuse Parks and recreation 154,615 252,253 (97,638) CA Parks & Recreation Senior Center Community development - 12,734 (12,734)
Recycling Fund
Public works 40,000 44,806 (4,806) USDOT – SS4A
Public works 200,000 227,207 (27,207) Homeland Security/Treasury Forfeiture Public safety 21,654 41,607 (19,953)
SUPPLEMENTARY INFORMATION
City of Hawthorne
Non-Major Governmental Funds
-111-
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)
-112-
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)
-113-
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 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)
-114-
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. No budget was legally adopted for the fund.
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.
Homeland Security – StoneGarden Fund is used to account for Federal grants that provide increased operational capability in law enforcement along international boundaries, cross-border crime, and intelligence collection.
Asset Forfeiture – Justice Fund is a nationwide law enforcement initiative that removes the tools of crime from criminal organizations, deters crime and deprives wrongdoers of their criminal proceeds, and recovers property that may be used to compensate victims. Equitable sharing further enhances the law enforcement mission by fostering cooperation among federal, state, and local law enforcement agencies.
Federal law authorizes the Attorney General to share federally forfeited property with participating state and local law enforcement agencies.
Social Security Administration Fund is used to account for Federal grants that are used for placement of investigators on the SSA Task Force.
USDOT – SS4A Fund is the US Department of Transportation’s grant to create a Comprehensive Safety Action Plan to address areas where safety countermeasures are urgently needed, primarily in underserved communities.
Homeland Security/Treasury Forfeiture Fund is a nationwide law enforcement initiative that removes the tools of crime from criminal organizations, deters crime and deprives wrongdoers of the proceeds of their criminal proceeds, and recovers property that may be used to compensate victims. Equitable sharing further enhances the law enforcement mission by fostering cooperation among federal, state, and local law enforcement agencies. Federal law authorizes Treasury to share federally forfeited property with participating state and local law enforcement agencies. 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
Non-Major Governmental Funds, (Continued)
-115-
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.
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, 2025
-116-
Special Revenue Funds
Street Gas
Lighting Tax Street
ASSETS
Cash and investments - $ 4,247,929 $ - $
Cash and investments with fiscal agents - - - Receivables:
Accounts - 630,835 - Taxes 8,585 - 2,910
Interest - 25,314 - Due from Successor Agency - - - Total assets 8,585 $ 4,904,078 $ 2,910 $
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable 2,601 $ 65,401 $ 296,916 $
Accrued liabilities 2,677 19,112 45,898 Unearned revenue - - - Deposits payable - - - Due to other funds 464,053 - 78,047 Total liabilities 469,331 84,513 420,861 Deferred Inflows of Resources:
Unavailable revenue - - - Fund Balances (Deficit):
Restricted - 4,819,565 - Unassigned (460,746) - (417,951) Total fund balances (460,746) 4,819,565 (417,951) Total liabilities, deferred inflows of
resources, and fund balances 8,585 $ 4,904,078 $ 2,910 $
(continued)
-117-
Special Revenue Funds
California Edward Byrne Local Law
Asset Office of Memorial Justice Enforcement
Forfeiture COPS Traffic Safety Assistance Program Block Grant $ 363,302 968,270 $ - $ 17 $ 10,401 $
- - - - -
- - 45,194 - -
- - - - -
2,702 - - - -
- - - - - $ 366,004 968,270 $ 45,194 $ 17 $ 10,401 $
$ - 72,804 $ 1,350 $ - $ - $
- 21,299 7,756 17 -
- - - - -
- - - - -
- - 43,952 - -
- 94,103 53,058 17 -
- - 45,194 - -
366,004 874,167 - - 10,401
- - (53,058) - -
366,004 874,167 (53,058) - 10,401 $ 366,004 968,270 $ 45,194 $ 17 $ 10,401 $ City of Hawthorne
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2025
-118-
MTA Proposition MTA
Measure R A Measure M
Cash and investments 2,661,383 $ 6,018,310 $ 2,676,389 $ Cash and investments with fiscal agents - - - Receivables:
Accounts - - - Taxes - - -
Interest 16,535 39,227 17,013 Due from Successor Agency - - - Total assets 2,677,918 $ 6,057,537 $ 2,693,402 $
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable - $ 36,015 $ 154,332 $
Accrued liabilities 9,400 2,098 3,047 Unearned revenue - - - Deposits payable - - - Due to other funds - - - Total liabilities 9,400 38,113 157,379 Unavailable revenue - - - Restricted 2,668,518 6,019,424 2,536,023 Unassigned - - - Total fund balances 2,668,518 6,019,424 2,536,023 Total liabilities, deferred inflows of resources, and fund balances 2,677,918 $ 6,057,537 $ 2,693,402 $ Special Revenue Funds
Fund Balances (Deficit):
Deferred Inflows of Resources:
ASSETS
LIABILITIES, DEFERRED INFLOWS OF
(continued)
-119-
American California California
Down Payment Proposition Air Used Oil Beverage Container Dream Program C Quality Recycling Recycling
$ 4,240,153 15,600 $ 261,054 $ 182,170 $ 164,825 $
- - - - -
- - 29,784 - -
- - - - -
27,433 - 1,585 1,165 1,075
- - - - - $ 4,267,586 15,600 $ 292,423 $ 183,335 $ 165,900 $ $ 177,324 - $ 130 $ - $ - $
4,190 - - - 1,345
- - - 42,862 8,771
- - - - -
- - - - -
181,514 - 130 42,862 10,116
- - - - -
4,086,072 15,600 292,293 140,473 155,784
- - - - -
4,086,072 15,600 292,293 140,473 155,784 $ 4,267,586 15,600 $ 292,423 $ 183,335 $ 165,900 $ Special Revenue Funds
City of Hawthorne
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2025
-120-
Hawthorne Blvd
Mobility Improv. Housing
Program CATV Peg Asset
Cash and investments 674 $ 701,912 $ 8,061,237 $
Cash and investments with fiscal agents - - - Receivables:
Accounts - 17,611 - Taxes - - -
Interest 4 - 52,640 Due from Successor Agency - - 366,734 Total assets 678 $ 719,523 $ 8,480,611 $
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable - $ - $ 22,944 $
Accrued liabilities - - 3,982 Unearned revenue - - - Deposits payable - - 51,125 Due to other funds - - - Total liabilities - - 78,051 Unavailable revenue - - 366,734 Restricted 678 719,523 8,035,826 Unassigned - - - Total fund balances 678 719,523 8,035,826 Total liabilities, deferred inflows of resources, and fund balances 678 $ 719,523 $ 8,480,611 $ Deferred Inflows of Resources:
Fund Balances (Deficit):
ASSETS
LIABILITIES, DEFERRED INFLOWS OF
Special Revenue Funds
(continued)
-121-
Community SB1383 Local
HOME Development HPRP FEMA Assistance
Grant Block Grant Funds Grant Grant
$ 140,781 71,914 $ 15,153 $ 3,227 $ 154,770 $
- - - - -
328,751 18,420 - - -
- - - - -
- - - 21 1,059
- - - - - $ 469,532 90,334 $ 15,153 $ 3,248 $ 155,829 $ $ 641,565 907,266 $ - $ - $ - $
1,130 4,886 - - 6,132
- 872,158 - - 132,034
17,897 - - - -
330,008 - - - -
990,600 1,784,310 - - 138,166
- 164,997 - - -
- - 15,153 3,248 17,663
(686,065) (1,693,976) - - -
(686,065) (1,693,976) 15,153 3,248 17,663 $ 469,532 90,334 $ 15,153 $ 3,248 $ 155,829 $ Special Revenue Funds
City of Hawthorne
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2025
-122-
Permanent
Local Housing CARES MTA
Allocation Act Measure W
Cash and investments 330,678 $ 40 $ - $
Cash and investments with fiscal agents - - - Receivables:
Accounts - - 25,770 Taxes - - -
Interest 3,998 - - Due from Successor Agency - - - Total assets 334,676 $ 40 $ 25,770 $
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable 182,325 $ - $ 32,798 $
Accrued liabilities - - 6,138 Unearned revenue 55,232 - - Deposits payable - - - Due to other funds - - 429,159 Total liabilities 237,557 - 468,095 Unavailable revenue - - - Restricted 97,119 40 - Unassigned - - (442,325) Total fund balances 97,119 40 (442,325) Total liabilities, deferred inflows of
resources, and fund balances 334,676 $ 40 $ 25,770 $
Fund Balances (Deficit):
Deferred Inflows of Resources:
ASSETS
LIABILITIES, DEFERRED INFLOWS OF
Special Revenue Funds
(continued)
-123-
SB2 LA Centers
Planning LEAP Urban Security Rain Water for Alcohol
Grant Grant Initiative Grant Grant & Drug Abuse
$ - 44,881 $ - $ 473,855 $ 25,904 $
- - - - -
- - - - 118,638
- - - - -
- 293 - 3,099 120
- - - - - $ - 45,174 $ - $ 476,954 $ 144,662 $
$ - - $ - $ - $ 82,870 $
- - - - -
- - - 438,451 -
- - - - -
- - - - -
- - - 438,451 82,870
- - - - 57,030
- 45,174 - 38,503 4,762
- - - - -
- 45,174 - 38,503 4,762 $ - 45,174 $ - $ 476,954 $ 144,662 $ Special Revenue Funds
City of Hawthorne
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2025
-124-
CA Parks Building Resilient
& Recreation HUD Community Infrastructure &
Senior Center Development Communities
Cash and investments - $ - $ - $
Cash and investments with fiscal agents - - - Receivables:
Accounts - 465,662 - Taxes - - -
Interest - - - Due from Successor Agency - - - Total assets - $ 465,662 $ - $
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable - $ 1,680 $ - $
Accrued liabilities 349 - - Unearned revenue 622 - - Deposits payable - - - Due to other funds 214,464 464,410 275,649 Total liabilities 215,435 466,090 275,649 Unavailable revenue - - - Restricted - - - Unassigned (215,435) (428) (275,649) Total fund balances (215,435) (428) (275,649) Total liabilities, deferred inflows of
resources, and fund balances - $ 465,662 $ - $
Fund Balances (Deficit):
Deferred Inflows of Resources:
Special Revenue Funds
ASSETS
LIABILITIES, DEFERRED INFLOWS OF
(continued)
-125-
$ - - $ - $ 26,703 $ 3,715 $
- - - - -
29,800 45,000 106,000 - 3,715
- - - - -
- - - - -
- - - - - $ 29,800 45,000 $ 106,000 $ 26,703 $ 7,430 $
$ - 13,003 $ - $ - $ - $
1,378 - 7,571 - -
- - - - -
- - - - -
68,959 31,342 98,429 - 3,715
70,337 44,345 106,000 - 3,715
45,000 29,800 78,879 - 3,715
- - - 26,703 -
(70,337) (44,345) (78,879) - -
(70,337) (44,345) (78,879) 26,703 - $ 29,800 45,000 $ 106,000 $ 26,703 $ 7,430 $ Cannabis Retail
Acess Grant Recycling Fund
Homeland Security -
StoneGarden
Asset Forfeiture -
Justice
Social Security
Administration
Special Revenue Funds
City of Hawthorne
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2025
-126-
2009 Street
Improvement
(Formerly Major)
Cash and investments - $ 500,288 $ 1,522,411 $
Cash and investments with fiscal agents - - - Receivables:
Accounts 227,207 7,299 131,971 Taxes - - -
Interest - - 5,284 Due from Successor Agency - - - Total assets 227,207 $ 507,587 $ 1,659,666 $
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable - $ - $ 32,283 $
Accrued liabilities - - 22,754 Unearned revenue - - 129,919 Deposits payable - - - Due to other funds 227,207 - - Total liabilities 227,207 - 184,956 Unavailable revenue 227,207 - 131,971 Restricted - 507,587 1,342,739 Unassigned (227,207) - - Total fund balances (227,207) 507,587 1,342,739 Total liabilities, deferred inflows of resources, and fund balances 227,207 $ 507,587 $ 1,659,666 $ ASSETS
LIABILITIES, DEFERRED INFLOWS OF
Deferred Inflows of Resources:
Fund Balances (Deficit):
Homeland
Security/Treasury
USDOT – SS4A Forfeiture
Special Revenue Fund
(continued)
-127-
Public 2016
Development Financing Refunding
Impact Authority Bonds
$ 5,291,703 2,154,584 $ 277,144 $ 119,549 $
- - - 1
- - - -
- - - -
- 14,105 1,812 -
- - - - $ 5,291,703 2,168,689 $ 278,956 $ 119,550 $
$ 198,128 6,105 $ - $ - $
2,083 - - -
- - - -
- - - -
- - - -
200,211 6,105 - -
- - - -
5,091,492 2,162,584 278,956 119,550
- - - -
5,091,492 2,162,584 278,956 119,550 $ 5,291,703 2,168,689 $ 278,956 $ 119,550 $ Capital
Improvements
Capital Improvement Funds Debt Service Funds
This page intentionaly left blank
City of Hawthorne
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2025 (concluded)
-128-
2019 Total Nonmajor
Pension Obligation Governmental
Bond Funds
Cash and investments 48,842 $ - $ 41,779,768 $
Cash and investments with fiscal agents - 6 7 Receivables:
Accounts - - 2,231,657 Taxes - - 11,495
Interest 57 - 214,541 Due from Successor Agency - - 366,734 Total assets 48,899 $ 6 $ 44,604,202 $
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable - $ - $ 2,927,840 $
Accrued liabilities - - 173,242 Unearned revenue - - 1,680,049 Deposits payable - - 69,022 Due to other funds - 1,221,192 3,950,586 Total liabilities - 1,221,192 8,800,739 Unavailable revenue - - 1,150,527 Restricted 48,899 - 40,540,523 Unassigned - (1,221,186) (5,887,587) Total fund balances 48,899 (1,221,186) 34,652,936
Total liabilities, deferred inflows of
resources, and fund balances 48,899 $ 6 $ 44,604,202 $
Fund Balances (Deficit):
ASSETS
LIABILITIES, DEFERRED INFLOWS OF
Deferred Inflows of Resources:
2016 Direct
Placement Lease
Financing
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, 2025
-129-
Special Revenue Funds
Street Gas
Lighting Tax Street
Revenues
Taxes 580,622 $ - $ - $
Licenses and permits - - -
Intergovernmental 170,001 4,837,552 143,656 Charges for services - - 195,858 Fines and forfeitures - - - Use of money and property 388 183,977 7,956 Miscellaneous - - 352,507 Total revenues 751,011 5,021,529 699,977 Expenditures
Current:
General government - - - Public safety - - - Community development - - - Parks and recreation - - - Public works 970,312 1,271,865 1,825,726 Capital outlay - 1,200,000 884,692 Debt service:
Principal retirement - - -
Interest and fiscal charges - - - Total expenditures 970,312 2,471,865 2,710,418 Excess (deficiency) of revenues over (under) expenditures (219,301) 2,549,664 (2,010,441) Other Financing Sources (Uses) Lease acquisition - - - Subscription acquisition - - - Transfers in - - 1,500,000 Transfers out (26,544) (1,667,992) (289,264) Total other financing sources (uses) (26,544) (1,667,992) 1,210,736 Net change in fund balances (245,845) 881,672 (799,705) Fund Balances (Deficit) Fund balance, previously reported (214,901) 3,937,893 381,754 Change in presentation of fund activity - - - Change from/to nonmajor/major - - - Beginning, as restated 3,937,893 (214,901) 381,754 Ending (460,746) $ 4,819,565 $ (417,951) $ (continued)
-130-
Special Revenue Funds
California Edward Byrne Local Law
Asset Office of Memorial Justice Enforcement
Forfeiture COPS Traffic Safety Assistance Program Block Grant $ - - $ - $ - $ - $
- - - - -
258,276 - 223,016 - 276,720
- - - - -
- 1,254,647 - - -
18,773 - - - -
- - - - -
277,049 1,254,647 223,016 - 276,720
- - - - -
- 194,915 268,210 - 53,080
- - - - -
- - - - -
300,000 - - - -
- 840,175 - - -
- - - - -
- - - - -
300,000 1,035,090 268,210 - 53,080
(22,951) 219,557 (45,194) - 223,640
- 325,632 - - -
- 404,213 - - -
- - - - -
- - - - -
- 729,845 - - -
(22,951) 949,402 (45,194) - 223,640
388,955 633,246 (7,864) - (213,239)
- (708,481) - - -
- - - - -
388,955 (75,235) (7,864) - (213,239) $ 366,004 874,167 $ (53,058) $ - $ 10,401 $ City of Hawthorne
Combining Statement of Revenues, Expenditures and Changes in Fund Balance Non-Major Governmental Funds
For the Fiscal Year Ended June 30, 2025
-131-
MTA Proposition MTA
Measure R A Measure M
Revenues
Taxes - $ - $ - $
Licenses and permits - - -
Intergovernmental 1,398,678 2,248,710 1,584,655 Charges for services - 3,048 - Fines and forfeitures - - - Use of money and property 117,930 252,011 112,348 Miscellaneous - - - Total revenues 1,516,608 2,503,769 1,697,003 Expenditures Current:
General government - - - Public safety - - - Community development - - - Parks and recreation - - - Public works 274,057 1,390,510 151,338 Capital outlay 970,996 - 950,880 Debt service:
Principal retirement - - -
Interest and fiscal charges - - - Total expenditures 1,245,053 1,390,510 1,102,218 Excess (deficiency) of revenues over (under) expenditures 271,555 1,113,259 594,785 Other Financing Sources (Uses) Lease acquisition - - - Subscription acquisition - - - Transfers in - - - Transfers out (42,343) (43,782) (55,491) Total other financing sources (uses) (42,343) (43,782) (55,491) Net change in fund balances 229,212 1,069,477 539,294 Fund Balances (Deficit) Fund balance, previously reported 2,439,306 4,949,947 1,996,729 Change in presentation of fund activity - - - Change from/to nonmajor/major - - - Beginning, as restated 4,949,947 2,439,306 1,996,729 Ending 2,668,518 $ 6,019,424 $ 2,536,023 $ Special Revenue Funds
(continued)
-132-
American California California
Down Payment Proposition Air Used Oil Beverage Container Dream Program C Quality Recycling Recycling
$ - - $ - $ - $ - $
- - - - -
1,865,248 - 114,053 - 13,032
- - - - -
- - - - -
183,448 - 9,200 7,631 6,719
- - - - -
2,048,696 - 123,253 7,631 19,751
- - - - -
- - - - -
- - 24,213 - -
- - - - -
477,499 - - 24,288 12,492
1,159,592 - - - -
- - - - -
- - - - -
1,637,091 - 24,213 24,288 12,492
411,605 - 99,040 (16,657) 7,259
- - - - -
- - - - -
- - - - -
(10,934) - - - -
(10,934) - - - -
400,671 - 99,040 (16,657) 7,259
3,685,401 15,600 193,253 157,130 148,525
- - - - -
- - - - -
3,685,401 15,600 193,253 157,130 148,525 $ 4,086,072 15,600 $ 292,293 $ 140,473 $ 155,784 $ 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, 2025
-133-
Hawthorne Blvd
Mobility Improv. Housing
Program CATV Peg Asset
Revenues
Taxes - $ - $ - $
Licenses and permits - 76,395 -
Intergovernmental - - - Charges for services - - - Fines and forfeitures - - - Use of money and property 29 - 713,231 Miscellaneous - - - Total revenues 29 76,395 713,231 Expenditures Current:
General government - - 13,119 Public safety - - - Community development - - 224,808 Parks and recreation - - - Public works - - - Capital outlay - 95,924 - Debt service:
Principal retirement - - -
Interest and fiscal charges - - - Total expenditures - 95,924 237,927 Excess (deficiency) of revenues over (under) expenditures 29 (19,529) 475,304
Other Financing Sources (Uses)
Lease acquisition - - - Subscription acquisition - - - Transfers in - - - Transfers out - - (66,578) Total other financing sources (uses) - - (66,578) Net change in fund balances 29 (19,529) 408,726 Fund Balances (Deficit) Fund balance, previously reported 649 739,052 7,627,100 Change in presentation of fund activity - - - Change from/to nonmajor/major - - - Beginning, as restated 739,052 649 7,627,100 Ending 678 $ 719,523 $ 8,035,826 $ Special Revenue Funds
(continued)
-134-
Community SB1383 Local
HOME Development HPRP FEMA Assistance
Grant Block Grant Funds Grant Grant
$ - - $ - $ - $ - $
- - - - -
2,073,249 1,415,658 - - -
- - - - -
- - - - -
- 18,420 - 675 201,803
- - - - -
2,073,249 1,434,078 - 675 201,803
- - - - -
- - - - -
1,898,555 2,122,900 - - 128,291
- - - - -
- - - - 62,744
191,752 - - - -
- - - - -
- - - - -
2,090,307 2,122,900 - - 191,035
(17,058) (688,822) - 675 10,768
- - - - -
- - - - -
- - - - -
(7,158) (48,039) - - -
(7,158) (48,039) - - -
(24,216) (736,861) - 675 10,768
(661,849) (957,115) 15,153 2,573 6,895
- - - - -
- - - - -
(661,849) (957,115) 15,153 2,573 6,895 $ (686,065) (1,693,976) $ 15,153 $ 3,248 $ 17,663 $ 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, 2025
-135-
Permanent
Local Housing CARES MTA
Allocation Act Measure W
Revenues
Taxes - $ - $ - $
Licenses and permits - - -
Intergovernmental 748,222 - 25,770 Charges for services - - - Fines and forfeitures - - - Use of money and property 39,518 2 9,187 Miscellaneous - - - Total revenues 787,740 2 34,957 Expenditures Current:
General government - - - Public safety - - - Community development 740,624 - - Parks and recreation - - - Public works - - 459,772 Capital outlay 74,051 - 400,000 Debt service:
Principal retirement - - -
Interest and fiscal charges - - - Total expenditures 814,675 - 859,772 Excess (deficiency) of revenues over (under) expenditures (26,935) 2 (824,815) Other Financing Sources (Uses) Lease acquisition - - - Subscription acquisition - - - Transfers in - - - Transfers out - - (62,214) Total other financing sources (uses) - - (62,214) Net change in fund balances (26,935) 2 (887,029) Fund Balances (Deficit) Fund balance, previously reported 124,054 38 444,704 Change in presentation of fund activity - - - Change from/to nonmajor/major - - - Beginning, as restated 38 124,054 444,704 Ending 97,119 $ 40 $ (442,325) $ Special Revenue Funds
(continued)
-136-
SB2 LA Centers
Planning LEAP Urban Security Rain Water for Alcohol
Grant Grant Initiative Grant Grant & Drug Abuse
$ - - $ - $ - $ - $
- - - - -
75,291 - 88,000 - 256,832
- - - - -
- - - - -
- 1,967 - 20,767 183
- - - - -
75,291 1,967 88,000 20,767 257,015
- - - - -
- - - - -
- - - - -
- - - - 252,253
- - - - -
- - 427,963 - -
- - - - -
- - - - -
- - 427,963 - 252,253
75,291 1,967 (339,963) 20,767 4,762
- - - - -
- - 339,963 - -
- - - - -
- - - - -
- - 339,963 - -
75,291 1,967 - 20,767 4,762
(75,291) 43,207 - 17,736 -
- - - - -
- - - - -
(75,291) 43,207 - 17,736 - $ - 45,174 $ - $ 38,503 $ 4,762 $ 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, 2025
-137-
CA Parks & Recreation CA Parks
Community Center & Recreation HUD Community
(Formerly Nonmajor) Senior Center Development
Revenues
Taxes - $ - $
Licenses and permits - -
Intergovernmental - 465,662 Charges for services - - Fines and forfeitures - - Use of money and property 238,861 - Miscellaneous - - Total revenues 238,861 465,662 Expenditures Current:
General government - - Public safety - - Community development 12,734 15,569 Parks and recreation 292,593 - Public works - - Capital outlay 167,911 - Debt service:
Principal retirement - -
Interest and fiscal charges - - Total expenditures 473,238 15,569 Excess (deficiency) of revenues over (under) expenditures (234,377) 450,093 Other Financing Sources (Uses) Lease acquisition - - Subscription acquisition - - Transfers in - - Transfers out - - Total other financing sources (uses) - - Net change in fund balances (234,377) 450,093 Fund Balances (Deficit) Fund balance, previously reported (923,820) 18,942 (450,521) Change in presentation of fund activity - - - Change from/to nonmajor/major 923,820 - - Beginning, as restated 18,942 - (450,521) Ending - $ (215,435) $ (428) $ Special Revenue Funds
(continued)
-138-
Building Resilient
Infrastructure &
Communities
$ - - $ - $ - $ - $
- - - - -
- - 15,006 27,121 -
- - - - -
- - - - 441,557
- - - - -
140,100 - - - -
140,100 - 15,006 27,121 441,557
- - - - -
- - - 106,000 678,067
185,100 - - - -
- - - - -
- - 44,806 - -
- - - - -
- - - - -
- - - - -
185,100 - 44,806 106,000 678,067
(45,000) - (29,800) (78,879) (236,510)
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
(45,000) - (29,800) (78,879) (236,510)
655 (275,649) (40,537) - -
- - - - 263,213
- - - - -
655 (275,649) (40,537) - 263,213 $ (44,345) (275,649) $ (70,337) $ (78,879) $ 26,703 $ Asset Forfeiture -
Recycling Fund Justice
Cannabis Retail
Access Grant
Homeland
Security -
StoneGarden
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, 2025
-139-
Revenues
Taxes - $ - $ - $
Licenses and permits - - -
Intergovernmental - - - Charges for services - - - Fines and forfeitures - - 103,926 Use of money and property - - - Miscellaneous - - - Total revenues - - 103,926 Expenditures Current:
General government - - - Public safety - - 41,607 Community development - - - Parks and recreation - - - Public works - 227,207 - Capital outlay - - - Debt service:
Principal retirement - - -
Interest and fiscal charges - - - Total expenditures - 227,207 41,607 Excess (deficiency) of revenues over (under) expenditures - (227,207) 62,319
Other Financing Sources (Uses)
Lease acquisition - - - Subscription acquisition - - - Transfers in - - - Transfers out - - - Total other financing sources (uses) - - - Net change in fund balances - (227,207) 62,319 Fund Balances (Deficit) Fund balance, previously reported - - - Change in presentation of fund activity - - 445,268 Change from/to nonmajor/major - - - Beginning, as restated - - 445,268 Ending - $ (227,207) $ 507,587 $ Homeland
Security/Treasury
Forfeiture
Social Security
Administration USDOT – SS4A
Special Revenue Fund
(continued)
-140-
Special Revenue Fund Capital Projects Funds Debt Service Funds 2009 Street Park Public
Improvement Development Improvements Financing
(Formerly Major) Impact (Formerly Nonmajor) Authority
$ - - $ - $ - $
77,425 - - -
- 4,511,678 214,207 -
- - - -
- - - -
94,136 7,456 131,983 12,146
- 250,000 - -
171,561 4,769,134 346,190 12,146
- - 2,032,533 -
- - - -
19,826 - - -
- - - -
- 1,257,934 - -
71,174 578,489 - -
- - - -
- - - -
91,000 1,836,423 2,032,533 -
80,561 2,932,711 (1,686,343) 12,146
- - - -
- - - -
- - 3,295,633 -
- - - -
- - 3,295,633 -
80,561 2,932,711 1,609,290 12,146
2,082,023 - 3,482,202 (220,262) 266,810
- - - - -
- (1,589,972) - 220,262 -
2,082,023 (1,589,972) 3,482,202 - 266,810 $ 2,162,584 1,342,739 $ 5,091,492 $ - $ 278,956 $ Capital
Improvements
City of Hawthorne
Combining Statement of Revenues, Expenditures and Changes in Fund Balance Non-Major Governmental Funds
For the Fiscal Year Ended June 30, 2025 (concluded)
-141-
Total
2016 2019 Pension Non-major
Refunding Obligation Governmental
Bonds Bond Funds
Revenues
Taxes - $ - $ - $ 580,622 $
Licenses and permits - - - 153,820
Intergovernmental - - - 23,050,293 Charges for services 6,047 - 14,002 218,955 Fines and forfeitures - - - 1,800,130 Use of money and property 100 1,906 9,194 2,401,945 Miscellaneous - - - 742,607 Total revenues 6,147 1,906 23,196 28,948,372 Expenditures Current:
General government 204 - - 2,045,856 Public safety - - - 1,341,879 Community development - - - 5,372,620
Parks and recreation - - - 544,846 Public works - - - 8,750,550 Capital outlay - - - 8,013,599 Debt service:
Principal retirement 2,215,000 205,850 2,930,000 5,350,850 Interest and fiscal charges 623,372 34,499 3,749,413 4,407,284 Total expenditures 2,838,372 240,553 6,679,413 35,827,484 Excess (deficiency) of revenues over (under) expenditures (2,832,225) (238,647) (6,656,217) (6,879,112) Other Financing Sources (Uses) Lease acquisition - - - 325,632 Subscription acquisition - - - 744,176 Transfers in 3,288,713 240,352 7,615,197 15,939,895 Transfers out - - - (2,320,339) Total other financing sources (uses) 3,288,713 240,352 7,615,197 14,689,364 Net change in fund balances 456,488 1,705 958,980 7,810,252 Fund Balances (Deficit) Fund balance, previously reported (336,938) 47,194 (2,180,166) 27,288,574 Change in presentation of fund activity - - - - Change from/to nonmajor/major - - - (445,890) Beginning, as restated 47,194 (336,938) (2,180,166) 26,842,684 Ending 119,550 $ 48,899 $ (1,221,186) $ 34,652,936 $ 2016 Direct
Placement Lease
Financing
Debt Service Funds
City of Hawthorne
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Park Improvements Capital Projects Fund – Major Fund
For the Fiscal Year Ended June 30, 2025
-142-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Intergovernmental 5,574,990 $ 5,628,794 $ - $ (5,628,794) $ Use of money and property - 3,000 2,288 (712) Total revenues 5,574,990 5,631,794 2,288 (5,629,506) Expenditures Current:
Community development 231,756 231,756 328,789 (97,033) Parks and recreation 4,025,591 4,025,591 3,434,425 591,166 Total expenditures 4,257,347 4,257,347 3,763,214 494,133 Excess (deficiency) of revenues over
(under) expenditures 1,317,643 1,374,447 (3,760,926) (5,135,373) Other Financing Uses Transfers in - 411,721 411,721 - Total other financing uses - 411,721 411,721 - Net change in fund balance 1,317,643 1,786,168 (3,349,205) (5,135,373) Fund Balance (Deficit) Beginning - - (220,262) (220,262) Ending 1,317,643 $ 1,786,168 $ (3,569,467) $ (5,355,635) $ Budgeted Amounts
City of Hawthorne
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Civic Center Lease Bonds Fund – Major Fund
For the Fiscal Year Ended June 30, 2025
-143-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Use of money and property - $ 250,000 $ 797,456 $ 547,456 $ Total revenues - 250,000 797,456 547,456 Expenditures
Debt service:
Principal retirement 1,500,000 1,500,000 - 1,500,000
Interest and fiscal charges - - 778,556 (778,556) Bond issuance costs - - 439,453 (439,453) Total expenditures 1,500,000 1,500,000 1,218,009 281,991 Excess (deficiency) of revenues over (under) expenditures (1,500,000) (1,250,000) (420,553) 829,447 Other Financing Sources Issuance of debt - - 26,950,000 26,950,000 Premium on issuance of debt - - 3,489,453 3,489,453 Transfers in 1,500,000 1,500,000 1,500,000 - Total other financing sources 1,500,000 1,500,000 31,939,453 30,439,453 Net change in fund balance - 250,000 31,518,900 31,268,900 Fund Balance
Beginning - - - - Ending - $ 250,000 $ 31,518,900 $ 31,268,900 $ Budgeted Amounts
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, 2025
-144-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Taxes 580,000 $ 580,000 $ 580,622 $ 622 $
Intergovernmental 180,000 180,000 170,001 (9,999) Use of money and property 100 100 388 288 Total revenues 760,100 760,100 751,011 (9,089) Expenditures Current:
Public works 845,478 845,478 970,312 (124,834) Total expenditures 845,478 845,478 970,312 (124,834) Excess (deficiency) of revenues over
(under) expenditures (85,378) (85,378) (219,301) (133,923) Other Financing Uses Transfers out (32,208) (32,208) (26,544) 5,664 Total other financing uses (32,208) (32,208) (26,544) 5,664 Net change in fund balance (117,586) (117,586) (245,845) (128,259) Fund Balance (Deficit) Beginning (214,901) (214,901) (214,901) - Ending (332,487) $ (332,487) $ (460,746) $ (128,259) $ 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, 2025
-145-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Intergovernmental 4,647,213 $ 4,647,213 $ 4,837,552 $ 190,339 $ Use of money and property 100 130,100 183,977 53,877 Total revenues 4,647,313 4,777,313 5,021,529 244,216 Expenditures Current:
Public works 1,777,412 1,786,583 1,271,865 514,718 Capital Outlay 1,250,000 1,250,000 1,200,000 50,000 Total expenditures 3,027,412 3,036,583 2,471,865 564,718 Excess (deficiency) of revenues over (under) expenditures 1,619,901 1,740,730 2,549,664 808,934 Other Financing Uses Transfers out (1,677,141) (1,677,141) (1,667,992) 9,149 Total other financing uses (1,677,141) (1,677,141) (1,667,992) 9,149 Net change in fund balance (57,240) 63,589 881,672 818,083 Fund Balance Beginning 3,937,893 3,937,893 3,937,893 - Ending 3,880,653 $ 4,001,482 $ 4,819,565 $ 818,083 $ 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, 2025
-146-
Actual Variance with
Original Final Amount Final Budget
Revenues
Intergovernmental 123,008 $ 123,008 $ 143,656 $ 20,648 $ Charges for services 196,000 196,000 195,858 (142) Use of money and property 5,000 17,000 7,956 (9,044) Miscellaneous 300,000 300,000 352,507 52,507 Total revenues 624,008 636,008 699,977 63,969 Expenditures
Current:
Public works 2,264,884 2,264,884 1,825,726 439,158 Capital outlay 300,000 1,345,791 884,692 461,099 Total expenditures 2,564,884 3,610,675 2,710,418 900,257 Excess (deficiency) of revenues over
(under) expenditures (1,940,876) (2,974,667) (2,010,441) 964,226 Other Financing Sources (Uses) Transfers in 1,500,000 1,500,000 1,500,000 - Transfers out (208,071) (208,071) (289,264) (81,193) Total other financing sources (uses) 1,291,929 1,291,929 1,210,736 (81,193) Net change in fund balance (648,947) (1,682,738) (799,705) 883,033 Fund Balance Beginning 381,754 381,754 381,754 - Ending (267,193) $ (1,300,984) $ (417,951) $ 883,033 $ 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, 2025
-147-
Actual Variance with
Original Final Amount Final Budget
Revenues
Fines and forfeitures 1,040,000 $ - $ 1,254,647 $ 1,254,647 $ Total revenues 1,040,000 - 1,254,647 1,254,647 Expenditures Current:
Public safety 2,110,285 836,962 194,915 642,047 Capital outlay 100,000 837,713 840,175 (2,462) Total expenditures 2,210,285 1,674,675 1,035,090 639,585 Excess (deficiency) of revenues over (under) expenditures (1,170,285) (1,674,675) 219,557 1,894,232 Other Financing Sources Lease acquisition - 325,632 325,632 - Subscription acquisition - 404,213 404,213 - Total other financing sources - 729,845 729,845 - Net change in fund balance (1,170,285) (944,830) 949,402 1,894,232 Fund Balance Beginning fund Balance, previously reported 633,246 633,246 633,246 - Change in presentation of fund activity - - (708,481) (708,481) Beginning, as restated 633,246 633,246 (75,235) (708,481) Ending (537,039) $ (311,584) $ 874,167 $ 1,185,751 $ 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, 2025
-148-
Actual Variance with
Original Final Amount Final Budget
Revenues
Intergovernmental 230,000 $ 230,000 $ 258,276 $ 28,276 $ Use of money and property 2,000 10,000 18,773 8,773 Total revenues 232,000 240,000 277,049 37,049 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) (60,000) (22,951) 37,049 Fund Balance Beginning 388,955 388,955 388,955 - Ending 320,955 $ 328,955 $ 366,004 $ 37,049 $ 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, 2025
-149-
Actual Variance with
Original Final Amount Final Budget
Revenues
Intergovernmental 388,674 $ 388,674 $ 223,016 $ (165,658) $ Total revenues 388,674 388,674 223,016 (165,658) Expenditures Current:
Public safety 388,674 396,977 268,210 128,767 Total expenditures 388,674 396,977 268,210 128,767 Net change in fund balance - (8,303) (45,194) (36,891) Fund Balance (Deficit) Beginning (7,864) (7,864) (7,864) - Ending (7,864) $ (16,167) $ (53,058) $ (36,891) $ 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, 2025
-150-
Actual Variance with
Original Final Amount Final Budget
Revenues
Intergovernmental 39,876 $ 92,956 $ 276,720 $ 183,764 $ Total revenues 39,876 92,956 276,720 183,764 Expenditures Current:
Public safety 39,876 92,956 53,080 39,876 Total expenditures 39,876 92,956 53,080 39,876 Net change in fund balance - - 223,640 223,640 Fund Balance (Deficit) Beginning (213,239) (213,239) (213,239) - Ending (213,239) $ (213,239) $ 10,401 $ 223,640 $ 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, 2025
-151-
Actual Variance with
Original Final Amount Final Budget
Revenues
Intergovernmental 1,499,590 $ 1,499,590 $ 1,398,678 $ (100,912) $ Use of money and property 2,000 77,000 117,930 40,930 Total revenues 1,501,590 1,576,590 1,516,608 (59,982) Expenditures Current:
Public works 535,300 661,332 274,057 387,275 Capital outlay 900,000 970,000 970,996 (996) Total expenditures 1,435,300 1,631,332 1,245,053 386,279 Excess (deficiency) of revenues over (under) expenditures 66,290 (54,742) 271,555 326,297 Other Financing Uses Transfers out (51,033) (51,033) (42,343) 8,690 Total other financing uses (51,033) (51,033) (42,343) 8,690 Net change in fund balance 15,257 (105,775) 229,212 334,987 Fund Balance Beginning 2,439,306 2,439,306 2,439,306 - Ending 2,454,563 $ 2,333,531 $ 2,668,518 $ 334,987 $ 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, 2025
-152-
Actual Variance with
Original Final Amount Final Budget
Revenues
Intergovernmental 2,410,509 $ 2,410,509 $ 2,248,710 $ (161,799) $ Charges for services 1,800 2,300 3,048 748 Use of money and property 2,000 152,000 252,011 100,011 Total revenues 2,414,309 2,564,809 2,503,769 (61,040) Expenditures Current:
Public works 4,767,271 5,180,815 1,390,510 3,790,305 Total expenditures 4,767,271 5,180,815 1,390,510 3,790,305 Excess (deficiency) of revenues
over (under) expenditures (2,352,962) (2,616,006) 1,113,259 3,729,265 Other Financing Uses Transfers out (15,081) (15,081) (43,782) (28,701) Total other financing uses (15,081) (15,081) (43,782) (28,701) Net change in fund balance (2,368,043) (2,631,087) 1,069,477 3,700,564 Fund Balance Beginning 4,949,947 4,949,947 4,949,947 - Ending 2,581,904 $ 2,318,860 $ 6,019,424 $ 3,700,564 $ 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, 2025
-153-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Intergovernmental 1,699,536 $ 1,699,536 $ 1,584,655 $ (114,881) $ Use of money and property 2,000 52,000 112,348 60,348 Total revenues 1,701,536 1,751,536 1,697,003 (54,533) Expenditures Current:
Public works 658,428 680,931 151,338 529,593 Capital outlay 1,000,000 1,000,000 950,880 49,120 Total expenditures 1,658,428 1,680,931 1,102,218 578,713 Excess (deficiency) of revenues over (under) expenditures 43,108 70,605 594,785 524,180 Other Financing Uses Transfers out (42,249) (42,249) (55,491) (13,242) Total other financing uses (42,249) (42,249) (55,491) (13,242) Net change in fund balance 859 28,356 539,294 510,938 Fund Balance Beginning 1,996,729 1,996,729 1,996,729 - Ending 1,997,588 $ 2,025,085 $ 2,536,023 $ 510,938 $ 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, 2025
-154-
Actual Variance with
Original Final Amount Final Budget
Revenues
Intergovernmental 1,999,454 $ 1,999,454 $ 1,865,248 $ (134,206) $ Use of money and property 2,000 92,000 183,448 91,448 Total revenues 2,001,454 2,091,454 2,048,696 (42,758) Expenditures Current:
Public works 1,027,272 1,393,884 477,499 916,385 Capital outlay 1,320,000 1,320,000 1,159,592 160,408 Total expenditures 2,347,272 2,713,884 1,637,091 1,076,793 Excess (deficiency) of revenues over (under) expenditures (345,818) (622,430) 411,605 1,034,035 Other Financing Uses Transfers out (87,848) (87,848) (10,934) 76,914 Total other financing uses (87,848) (87,848) (10,934) 76,914 Net change in fund balance (433,666) (710,278) 400,671 1,110,949 Fund Balance Beginning 3,685,401 3,685,401 3,685,401 - Ending 3,251,735 $ 2,975,123 $ 4,086,072 $ 1,110,949 $ 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, 2025
-155-
Actual Variance with
Original Final Amount Final Budget
Revenues
Intergovernmental 100,000 $ 100,000 $ 114,053 $ 14,053 $ Use of money and property 500 4,500 9,200 4,700 Total revenues 100,500 104,500 123,253 18,753 Expenditures Current:
Community development 113,840 213,840 24,213 189,627 Total expenditures 113,840 213,840 24,213 189,627 Net change in fund balance (13,340) (109,340) 99,040 208,380 Fund Balance
Beginning 193,253 193,253 193,253 - Ending 179,913 $ 83,913 $ 292,293 $ 208,380 $ 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, 2025
-156-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Intergovernmental 20,000 $ 20,000 $ - $ (20,000) $
Use of money and property 100 5,100 7,631 2,531 Total revenues 20,100 25,100 7,631 (17,469) Expenditures Current:
Public works 24,695 24,695 24,288 407 Total expenditures 24,695 24,695 24,288 407 Excess (deficiency) of revenues
over (under) expenditures (4,595) 405 (16,657) (17,062) Other Financing Uses Transfers out (288) (288) - 288 Total other financing uses (288) (288) - 288 Net change in fund balance (4,883) 117 (16,657) (16,774) Fund Balance Beginning 157,130 157,130 157,130 - Ending 152,247 $ 157,247 $ 140,473 $ (16,774) $ 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, 2025
-157-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Intergovernmental 50,000 $ 50,000 $ 13,032 $ (36,968) $ Use of money and property 100 5,100 6,719 1,619 Total revenues 50,100 55,100 19,751 (35,349) Expenditures Current:
Public works 14,270 14,270 12,492 1,778 Total expenditures 14,270 14,270 12,492 1,778 Excess (deficiency) of revenues over
(under) expenditures 35,830 40,830 7,259 (33,571) Other Financing Uses Transfers out (288) (288) - 288 Total other financing uses (288) (288) - 288 Net change in fund balance 35,542 40,542 7,259 (33,283) Fund Balance Beginning 148,525 148,525 148,525 - Ending 184,067 $ 189,067 $ 155,784 $ (33,283) $ Budgeted Amounts
City of Hawthorne
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
CATV Peg Special Revenue Fund
For the Fiscal Year Ended June 30, 2025
-158-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Licenses and permits 100,000 $ 100,000 $ 76,395 $ (23,605) $ Total revenues 100,000 100,000 76,395 (23,605) Expenditures Capital outlay 200,000 280,000 95,924 184,076 Total expenditures 200,000 280,000 95,924 184,076 Net change in fund balance (100,000) (180,000) (19,529) 160,471 Fund Balance
Beginning 739,052 739,052 739,052 - Ending 639,052 $ 559,052 $ 719,523 $ 160,471 $ 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, 2025
-159-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Use of money and property $ 633,844 412,844 $ 713,231 $ 79,387 $ Total revenues 412,844 633,844 713,231 79,387 Expenditures Current:
General government 900,000 1,330,625 13,119 1,317,506 Community development 506,502 233,880 224,808 281,694 Total expenditures 1,837,127 1,133,880 237,927 1,599,200 Excess (deficiency) of revenues over (under) expenditures (721,036) (1,203,283) 475,304 1,678,587 Other Financing Uses Transfers out (8,916) (50,409) (66,578) (16,169) Total other financing uses (8,916) (50,409) (66,578) (16,169) Net change in fund balance (729,952) (1,253,692) 408,726 1,662,418 Fund Balance Beginning 7,627,100 7,627,100 7,627,100 - Ending 6,897,148 $ 6,373,408 $ 8,035,826 $ 1,662,418 $ 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, 2025
-160-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Intergovernmental 7,287,660 $ 7,287,660 $ 1,415,658 $ (5,872,002) $ Use of money and property - - 18,420 18,420 Total revenues 7,287,660 7,287,660 1,434,078 (5,853,582) Expenditures Current:
Community development 7,289,404 8,241,412 2,122,900 6,118,512 Total expenditures 7,289,404 8,241,412 2,122,900 6,118,512 Excess (deficiency) of revenues over
(under) expenditures (1,744) (953,752) (688,822) 264,930 Other Financing Uses Transfers out (5,452) (5,452) (48,039) (42,587) Total other financing uses (5,452) (5,452) (48,039) (42,587) Net change in fund balance (7,196) (959,204) (736,861) 222,343 Fund Balance (Deficit) Beginning (957,115) (957,115) (957,115) - Ending (964,311) $ (1,916,319) $ (1,693,976) $ 222,343 $ 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, 2025
-161-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Intergovernmental 3,208,131 $ 3,208,131 $ 2,073,249 $ (1,134,882) $ Use of money and property 45,000 45,000 - (45,000) Total revenues 3,253,131 3,253,131 2,073,249 (1,179,882) Expenditures Current:
Community development 1,902,621 2,502,672 1,898,555 604,117 Capital outlay 1,080,000 868,796 191,752 677,044 Debt service:
Principal retirement - 335,000 - 335,000
Interest and fiscal charges - 4,774 - 4,774 Total expenditures 2,982,621 3,711,242 2,090,307 1,620,935 Excess (deficiency) of revenues over (under) expenditures 270,510 (458,111) (17,058) 441,053 Other Financing Uses Transfers out (19,051) (733) (7,158) (6,425) Total other financing uses (19,051) (733) (7,158) (6,425) Net change in fund balance 251,459 (458,844) (24,216) 434,628 Fund Balance (Deficit) Beginning (661,849) (661,849) (661,849) - Ending (410,390) $ (1,120,693) $ (686,065) $ 434,628 $ 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, 2025
-162-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Intergovernmental 158,468 $ 158,468 $ - $ (158,468) $
Use of money and property - 1,000 675 (325) Total revenues 158,468 159,468 675 (158,793) Expenditures Current:
Public safety 158,468 158,468 - 158,468 Total expenditures 158,468 158,468 - 158,468 Net change in fund balance - 1,000 675 (325) Fund Balance Beginning 2,573 2,573 2,573 - Ending 2,573 $ 3,573 $ 3,248 $ (325) $ 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, 2025
-163-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Use of money and property 229,999 $ 333,069 $ 201,803 $ (131,266) $ Total revenues 229,999 333,069 201,803 (131,266) Expenditures Current:
Community development 50,000 100,000 128,291 (28,291) Public works 120,000 120,000 62,744 57,256 Total expenditures 170,000 220,000 191,035 28,965 Net change in fund balance 59,999 113,069 10,768 (102,301) Fund Balance Beginning 6,895 6,895 6,895 - Ending 66,894 $ 119,964 $ 17,663 $ (102,301) $ 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, 2025
-164-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Intergovernmental 1,048,208 $ 1,048,208 $ 748,222 $ (299,986) $ Use of money and property - 25,000 39,518 14,518 Total revenues 1,048,208 1,073,208 787,740 (285,468) Expenditures Current:
Community development 136,220 347,488 740,624 (393,136) Capital outlay 2,986,906 2,986,906 74,051 2,912,855 Total expenditures 3,123,126 3,334,394 814,675 2,519,719 Net change in fund balance (2,074,918) (2,261,186) (26,935) 2,234,251 Fund Balance
Beginning 124,054 124,054 124,054 - Ending (1,950,864) $ (2,137,132) $ 97,119 $ 2,234,251 $ 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, 2025
-165-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Intergovernmental 800,000 $ 800,000 $ 25,770 $ (774,230) $ Use of money and property 300 8,300 9,187 887 Total revenues 800,300 808,300 34,957 (773,343) Expenditures Current:
Public Works 743,005 942,879 459,772 483,107 Capital outlay 400,000 400,000 400,000 - Total expenditures 1,143,005 1,342,879 859,772 483,107 Excess (deficiency) of revenues over (under) expenditures (342,705) (534,579) (824,815) (290,236) Other Financing Uses Transfers out (79,889) (79,889) (62,214) 17,675 Total other financing uses (79,889) (79,889) (62,214) 17,675 Net change in fund balance (422,594) (614,468) (887,029) (272,561) Fund Balance (Deficit) Beginning 444,704 444,704 444,704 - Ending 22,110 $ (169,764) $ (442,325) $ (272,561) $ 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, 2025
-166-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Use of money and property - $ 1,200 $ 1,967 $ 767 $
Total revenues - 1,200 1,967 767 Net change in fund balance - 1,200 1,967 767 Fund Balance
Beginning - 43,207 43,207 - Ending - $ 44,407 $ 45,174 $ 767 $ 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, 2025
-167-
Actual Variance with
Original Final Amount Final Budget
Revenues
Intergovernmental 123,372 $ 123,372 $ 88,000 $ (35,372) $ Total revenues 123,372 123,372 88,000 (35,372) Expenditures Capital outlay 123,753 463,716 427,963 35,753 Total expenditures 123,753 463,716 427,963 35,753 Excess (deficiency) of revenues over
(under) expenditures (381) (340,344) (339,963) 381 Other Financing Uses Subscription acquisition 339,963 339,963 - Total other financing uses - 339,963 339,963 - Net change in fund balance (381) (381) - 381 Fund Balance Beginning - - - - Ending (381) $ (381) $ - $ 381 $
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, 2025
-168-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Use of money and property - $ 10,000 $ 20,767 $ 10,767 $ Total revenues - 10,000 20,767 10,767 Net change in fund balance - 10,000 20,767 10,767 Fund Balance
Beginning 17,736 17,736 - Ending - $ 27,736 $ 38,503 $ 10,767 $ 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, 2025
-169-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Intergovernmental 289,985 $ 289,985 $ 256,832 $ (33,153) $ Use of money and property - - 183 183 Total revenues 289,985 289,985 257,015 (32,970) Expenditures Current:
Parks and recreation 154,615 154,615 252,253 (97,638) Total expenditures 154,615 154,615 252,253 (97,638) Net change in fund balance 135,370 135,370 4,762 (130,608) Fund Balance Beginning - - - - Ending 135,370 $ 135,370 $ 4,762 $ (130,608) $ 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, 2025
-170-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Use of money and property - $ 5,000 $ 238,861 $ 233,861 $ Total revenues - 5,000 238,861 233,861 Expenditures
Current:
Community development - - 12,734 (12,734) Parks and recreation 485,400 774,162 292,593 481,569 Capital outlay - 237,029 167,911 69,118 Total expenditures 485,400 1,011,191 473,238 537,953 Net change in fund balance (485,400) (1,006,191) (234,377) 771,814 Fund Balance (Deficit)
Beginning 18,942 18,942 18,942 - Ending (466,458) $ (987,249) $ (215,435) $ 771,814 $ 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, 2025
-171-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Intergovernmental 500,000 $ 500,000 $ 465,662 $ (34,338) $ Total revenues 500,000 500,000 465,662 (34,338) Expenditures Current:
Community development 16,200 99,179 15,569 83,610 Total expenditures 16,200 99,179 15,569 83,610 Net change in fund balance 483,800 400,821 450,093 49,272 Fund Balance (Deficit)
Beginning (450,521) (450,521) (450,521) - Ending 33,279 $ (49,700) $ (428) $ 49,272 $ 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, 2025
-172-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Miscellaneous 315,000 $ 315,000 $ 140,100 $ (174,900) $ Total revenues 315,000 315,000 140,100 (174,900) Expenditures Current:
Community development 315,000 315,000 185,100 129,900 Total expenditures 315,000 315,000 185,100 129,900 Net change in fund balance - - (45,000) (45,000) Fund Balance (Deficit) Beginning 655 655 655 - Ending 655 $ 655 $ (44,345) $ (45,000) $ 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, 2025
-173-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Intergovernmental 40,000 $ 40,000 $ 15,006 $ (24,994) $ Total revenues 40,000 40,000 15,006 (24,994) Expenditures Current:
Public works 34,000 40,000 44,806 (4,806) Total expenditures 34,000 40,000 44,806 (4,806) Net change in fund balance 6,000 - (29,800) (29,800) Fund Balance (Deficit) Beginning (40,537) (40,537) (40,537) - Ending (34,537) $ (40,537) $ (70,337) $ (29,800) $ Budgeted Amounts
City of Hawthorne
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Homeland Security - StoneGarden Fund Special Revenue Fund For the Fiscal Year Ended June 30, 2025
-174-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Intergovernmental - $ - $ 27,121 $ 27,121 $
Miscellaneous - 106,000 - (106,000) Total revenues - 106,000 27,121 (78,879) Expenditures Current:
Public safety - 106,000 106,000 - Total expenditures - 106,000 106,000 - Net change in fund balance - - (78,879) (78,879) Fund Balance (Deficit) Beginning - - - - Ending - $ - $ (78,879) $ (78,879) $
Budgeted Amounts
City of Hawthorne
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Asset Forfeiture - Justice Fund Special Revenue Fund
For the Fiscal Year Ended June 30, 2025
-175-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Fines and forfeitures - $ 1,000,000 $ 441,557 $ (558,443) $ Total revenues - 1,000,000 441,557 (558,443) Expenditures Current:
Public safety - 1,874,043 678,067 1,195,976 Total expenditures - 1,874,043 678,067 1,195,976 Net change in fund balance - (874,043) (236,510) 637,533 Fund Balance Beginning 263,213 263,213 263,213 - Ending 263,213 $ (610,830) $ 26,703 $ 637,533 $ Budgeted Amounts
City of Hawthorne
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
USDOT – SS4A Fund Special Revenue Fund
For the Fiscal Year Ended June 30, 2025
-176-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Use of money and property - $ 200,000 $ - $ (200,000) $ Total revenues - 200,000 - (200,000) Expenditures
Current:
Public works - 200,000 227,207 (27,207) Total expenditures - 200,000 227,207 (27,207) Net change in fund balance - - (227,207) (227,207) Fund Balance (Deficit) Beginning - - - - Ending - $ - $ (227,207) $ (227,207) $ Budgeted Amounts
City of Hawthorne
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Homeland Security/Treasury Forfeiture Fund Special Revenue Fund For the Fiscal Year Ended June 30, 2025
-177-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Fines and forfeitures - $ 41,654 $ 103,926 $ 62,272 $
Total revenues - 41,654 103,926 62,272 Expenditures
Current:
Public safety - 21,654 41,607 (19,953) Total expenditures - 21,654 41,607 (19,953) Net change in fund balance - 20,000 62,319 42,319 Fund Balance Beginning 445,268 445,268 445,268 - Ending 445,268 $ 465,268 $ 507,587 $ 42,319 $ Budgeted Amounts
City of Hawthorne
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
2009 Street Improvements Fund Special Revenue Fund
For the Fiscal Year Ended June 30, 2025
-178-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Intergovernmental 15,752,000 $ 15,752,000 $ 4,511,678 $ (11,240,322) $ Use of money and property 2,000 2,000 7,456 5,456 Miscellaneous - - 250,000 250,000 Total revenues 15,754,000 15,754,000 4,769,134 (10,984,866) Expenditures Current:
Public works 12,674,000 13,505,112 1,257,934 12,247,178 Capital outlay 3,000,000 3,000,000 578,489 2,421,511 Total expenditures 15,674,000 16,505,112 1,836,423 14,668,689 Net change in fund balance 80,000 (751,112) 2,932,711 3,683,823 Fund Balance (Deficit) Beginning - - (1,589,972) (1,589,972) Ending 80,000 $ (751,112) $ 1,342,739 $ 2,093,851 $ 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, 2025
-179-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Licenses and permits 500,000 $ 500,000 $ 77,425 $ (422,575) $ Use of money and property 5,000 65,000 94,136 29,136 Total revenues 505,000 565,000 171,561 (393,439) Expenditures Current:
Community development 50,804 50,804 19,826 30,978 Capital outlay 1,000,000 1,000,000 71,174 928,826 Total expenditures 1,050,804 1,050,804 91,000 959,804 Net change in fund balance (545,804) (485,804) 80,561 566,365 Fund Balance
Beginning 2,082,023 2,082,023 2,082,023 - Ending 1,536,219 $ 1,596,219 $ 2,162,584 $ 566,365 $ 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, 2025
-180-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Intergovernmental - $ - $ 214,207 $ 214,207 $
Use of money and property - 130,000 131,983 1,983 Total revenues - 130,000 346,190 216,190 Expenditures Current:
General government 4,155,585 4,155,585 2,032,533 2,123,052 Total expenditures 4,155,585 4,155,585 2,032,533 2,123,052 Excess (deficiency) of revenues over
(under) expenditures (4,155,585) (4,025,585) (1,686,343) 2,339,242 Other Financing Sources Transfers in - 3,295,633 3,295,633 - Total other financing sources - 3,295,633 3,295,633 - Net change in fund balance (4,155,585) (729,952) 1,609,290 2,339,242 Fund Balance Beginning 3,482,202 3,482,202 3,482,202 - Ending (673,383) $ 2,752,250 $ 5,091,492 $ 2,339,242 $ 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, 2025
-181-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Use of money and property - $ 7,000 $ 12,146 $ 5,146 $
Total revenues - 7,000 12,146 5,146 Net change in fund balance - 7,000 12,146 5,146 Fund Balance
Beginning 266,810 266,810 266,810 - Ending 266,810 $ 273,810 $ 278,956 $ 5,146 $ 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, 2025
-182-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Charges for services - $ - $ 6,047 $ 6,047 $
Use of money and property 300 300 100 (200) Total revenues 300 300 6,147 5,847 Expenditures Debt service:
Principal retirement 2,215,000 2,215,000 2,215,000 -
Interest and fiscal charges 673,372 673,372 623,372 50,000 Total expenditures 2,888,372 2,888,372 2,838,372 50,000 Excess (deficiency) of revenues over
(under) expenditures (2,888,072) (2,888,072) (2,832,225) 55,847 Other Financing Sources Transfers in 2,510,166 2,510,166 3,288,713 778,547 Total other financing sources 2,510,166 2,510,166 3,288,713 778,547 Net change in fund balance (377,906) (377,906) 456,488 834,394 Fund Balance (Deficit)
Beginning (336,938) (336,938) (336,938) - Ending (714,844) $ (714,844) $ 119,550 $ 834,394 $ 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, 2025
-183-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Use of money and property 400 $ 1,500 $ 1,906 $ 406 $
Total revenues 400 1,500 1,906 406 Expenditures
Current:
General government 5,704 5,704 204 5,500 Debt service:
Principal retirement 205,850 205,850 205,850 -
Interest and fiscal charges 34,500 34,500 34,499 1 Total expenditures 246,054 246,054 240,553 5,501 Excess (deficiency) of revenues over (under) expenditures (245,654) (244,554) (238,647) 5,907 Other Financing Sources Transfers in 240,350 240,350 240,352 2 Total other financing sources 240,350 240,350 240,352 2 Net change in fund balance (5,304) (4,204) 1,705 5,909 Fund Balance Beginning 47,194 47,194 47,194 - Ending 41,890 $ 42,990 $ 48,899 $ 5,909 $ 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, 2025
-184-
Actual Variance with
Original Final Amounts Final Budget
Revenues
Charges for services - $ - $ 14,002 $ 14,002 $
Use of money and property - - 9,194 9,194 Total revenues - - 23,196 23,196 Expenditures Debt service:
Principal retirement 2,930,000 2,930,000 2,930,000 -
Interest and fiscal charges 3,749,603 3,749,603 3,749,413 190 Total expenditures 6,679,603 6,679,603 6,679,413 190 Excess (deficiency) of revenues over
(under) expenditures (6,679,603) (6,679,603) (6,656,217) 23,386 Other Financing Sources Transfers in 6,526,432 6,526,432 7,615,197 1,088,765 Total other financing sources 6,526,432 6,526,432 7,615,197 1,088,765 Net change in fund balance (153,171) (153,171) 958,980 1,112,151 Fund Balance (Deficit)
Beginning (2,180,166) (2,180,166) (2,180,166) - Ending (2,333,337) $ (2,333,337) $ (1,221,186) $ 1,112,151 $ Budgeted Amounts
City of Hawthorne
Combining Statement of Net Position
Internal Service Funds
June 30, 2025
-185-
Equipment Hardware Insurance
Replacement Replacement Reserve Total
Current Assets:
Cash and investments 3,154,522 $ 4,000,000 $ - $ 7,154,522 $ Receivables:
Accounts 24,794 - 72 24,866
Inventories 14,311 - - 14,311
Total current assets 3,193,627 4,000,000 72 7,193,699 Noncurrent assets:
Capital assets, net of depreciation/amortization 3,401,829 - - 3,401,829 Total noncurrent assets 3,401,829 - - 3,401,829 Total assets 6,595,456 4,000,000 72 10,595,528 Deferred Outflows of Resources Pension related 153,841 - 186,248 340,089 Current liabilities:
Accounts payable 385,839 - 16,150 401,989 Accrued liabilities 18,144 - 7,999 26,143 Compensated absences 13,414 - - 13,414 Claims and judgements - - 1,295,398 1,295,398 Total current liabilities 417,397 - 1,319,547 1,736,944 Noncurrent liabilities:
Compensated absences 53,657 - - 53,657 Claims and judgements - - 5,181,591 5,181,591 Net pension liability 182,788 - 221,292 404,080 Total noncurrent liabilities 236,445 - 5,402,883 5,639,328 Total liabilities 653,842 - 6,722,430 7,376,272 Deferred Inflows of Resources
Pension related 5,830 - 7,058 12,888 Net Position (deficit) Net investment in capital assets 3,401,829 - - 3,401,829 Unrestricted 2,687,796 4,000,000 (6,543,168) 144,628 Total net position 6,089,625 $ 4,000,000 $ (6,543,168) $ 3,546,457 $ 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, 2025
-186-
Equipment Hardware Insurance
Replacement Replacement Reserve Total
Operating Revenues
Sales and service charges 3,054,042 $ - $ 7,769,664 $ 10,823,706 $ Miscellaneous 116,788 - - 116,788 Total operating revenues 3,170,830 - 7,769,664 10,940,494 Operating Expenses
Public safety 78,924 - - 78,924 Administration and general 1,418,469 - 375,210 1,793,679 Materials and supplies 672,564 - 2,989 675,553 Contractual services 183,317 - 7,266,234 7,449,551 Depreciation 589,718 - - 589,718 Total operating expenses 2,942,992 - 7,644,433 10,587,425 Operating income (loss) 227,838 - 125,231 353,069 Transfers Transfers in - 1,000,000 - 1,000,000 Transfers out (98,364) - (53,143) (151,507) Total transfers (98,364) 1,000,000 (53,143) 848,493 Change in net position 129,474 1,000,000 72,088 1,201,562 Net Position (Deficit)
Beginning 5,960,151 3,000,000 (6,615,256) 2,344,895 Ending 6,089,625 $ 4,000,000 $ (6,543,168) $ 3,546,457 $ City of Hawthorne
Combining Statement of Cash Flows
Internal Service Funds
For the Fiscal Year Ended June 30, 2025
-187-
Equipment Hardware Insurance
Replacement Replacement Reserve Total
Cash flows from operating activities
Cash received from customers and users 3,151,792 $ - $ 7,789,354 $ 10,941,146 $ Cash paid to suppliers for goods and services (2,159,530) - (7,619,178) (9,778,708) Cash paid to employees for services (400,823) - (117,033) (517,856) Net cash provided by operating activities 591,439 - 53,143 644,582 Cash flows from noncapital financing activities Transfer from other service funds - 1,000,000 - 1,000,000 Transfer to debt service funds (98,364) - (53,143) (151,507) Net cash provided (used) by noncapital financing activities (98,364) 1,000,000 (53,143) 848,493 Cash flows from capital and related financing activities Acquisition and construction of capital assets (1,588,073) - - (1,588,073) Payments on SBITA (11,506) - - (11,506) Net cash used for capital and related financing activities (1,599,579) - - (1,599,579) Net increase (decrease) in cash and cash equivalents 1,000,000 (1,106,504) - (106,504) Cash and cash equivalents, beginning of year 4,261,026 3,000,000 - 7,261,026 Cash and cash equivalents, end of year 3,154,522 $ 4,000,000 $ - $ 7,154,522 $ Reconciliation of operating income (loss) to net cash
provided by operating activities:
Operating income (loss) 227,838 $ - $ 125,231 $ 353,069 $ Adjustments to reconcile operating income (loss) to net cash provided by operating activities:
Depreciation/amortization 589,718 - - 589,718 (Increase) decrease in operating assets:
Accounts receivable (19,038) - 19,690 652 Deferred outflows of resources 131,961 - 159,757 291,718 Increase (decrease) in operating liabilities: - Accounts payable (267,354) - (15,885) (283,239) Accrued liabilities 4,035 - 743 4,778 Claims and judgements payable - - (117,721) (117,721) Compensated absences 22,302 - - 22,302 Net pension liability (100,147) - (121,243) (221,390) Deferred inflows of resources 2,124 - 2,571 4,695 Total adjustments 363,601 - (72,088) 291,513 Net cash provided by operating activities $ - 591,439 $ 53,143 $ 644,582 $
STATISTICAL SECTION
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City of Hawthorne
Statistical Section
-188-
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 189
Revenue Capacity 199
Debt Capacity 204
Demographic and Economic Information 210
Operating Information 213
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)
-189-
2016 2017 2018 2019 2020
Governmental Activities:
Net investment in capital assets 98,816,219 $ 104,229,572 $ 105,088,517 $ 113,929,703 $ 115,535,476 $ Restricted for:
Public safety 293,845 1,400,432 539,905 908,793 2,132,992 Community development 3,211,422 4,086,416 6,417,462 7,686,125 7,489,182 Parks and recreation - - - - 221,702 Public works 5,821,832 6,174,648 6,772,717 7,328,057 12,391,232 Capital improvements 4,428,834 4,243,801 4,974,337 3,787,315 4,273,286 Debt service 1,989,372 1,776,572 1,785,449 2,287,599 2,443,670 Unrestricted (104,694,912) (114,897,815) (199,077,160) (195,983,739) (196,188,925) Total governmental activities net position 9,866,612 $ 7,013,626 $ (73,498,773) $ (60,056,147) $ (51,701,385) $ Business-type activities:
Net investment in capital assets 10,443,914 $ 10,034,549 $ 9,657,296 $ 9,269,159 $ 8,894,639 $ Unrestricted 770,871 1,479,009 863,905 994,105 4,414,574 Total business-type activities net position 11,214,785 $ 11,513,558 $ 10,521,201 $ 10,263,264 $ 13,309,213 $ Primary Government:
Net investment in capital assets 109,260,133 $ 114,264,121 $ 114,745,813 $ 123,198,862 $ 124,430,115 $ Restricted for:
Public safety 293,845 1,400,432 539,905 908,793 2,132,992 Community development 3,211,422 4,086,416 6,417,462 7,686,125 7,489,182 Parks and recreation - - - - 221,702 Public works 5,821,832 6,174,648 6,772,717 7,328,057 12,391,232 Capital improvements 4,428,834 4,243,801 4,974,337 3,787,315 4,273,286 Debt service 1,989,372 1,776,572 1,785,449 2,287,599 2,443,670 Unrestricted (103,924,041) (113,418,806) (198,213,255) (194,989,634) (191,774,351) Total primary government net position 21,081,397 $ 18,527,184 $ (62,977,572) $ (49,792,883) $ (38,392,172) $ Fiscal Year
Source: City of Hawthorne, Finance Department
-190-
2021 2022 2023 2024 2025
$ 117,437,597 115,055,399 $ 135,562,068 $ 149,390,159 $ 168,245,969 $ 1,441,602 1,220,865 1,240,790 1,892,112 1,821,431
7,937,659 7,628,820 8,189,764 7,204,311 8,682,362
439,384 523,567 475,684 451,871 451,871
16,267,086 14,519,981 17,717,046 17,566,534 20,289,154
4,906,446 4,466,496 4,914,903 6,747,980 9,316,338
2,242,510 2,483,866 285,016 329,603 31,981,905
(122,568,622) (196,644,055) (144,430,630) (126,435,776) (154,949,808) $ 28,103,662 (50,745,061) $ 23,954,641 $ 57,146,794 $ 85,839,222 $ $ 11,008,202 8,638,581 $ 11,296,460 $ 11,470,932 $ 14,008,061 $ 4,953,411 5,036,958 5,972,118 5,959,822 3,591,911 $ 15,961,613 13,675,539 $ 17,268,578 $ 17,430,754 $ 17,599,972 $ $ 128,445,799 123,693,980 $ 146,858,528 $ 160,861,091 $ 182,254,030 $ 1,441,602 1,220,865 1,240,790 1,892,112 1,821,431
7,937,659 7,628,820 8,189,764 7,204,311 8,682,362
439,384 523,567 475,684 451,871 451,871
16,267,086 14,519,981 17,717,046 17,566,534 20,289,154
4,906,446 4,466,496 4,914,903 6,747,980 9,316,338
2,242,510 2,483,866 285,016 329,603 31,981,905
(117,615,211) (191,607,097) (138,458,512) (120,475,954) (151,357,897) $ 44,065,275 (37,069,522) $ 41,223,219 $ 74,577,548 $ 103,439,194 $ Fiscal Year
City of Hawthorne
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
-191-
2016 2017 2018 2019 2020
Expenses:
Governmental Activities:
General government 9,959,013 $ 11,094,220 $ 14,701,855 $ 14,732,354 $ 11,217,900 $ Public safety 47,961,278 54,633,003 54,381,340 54,981,502 59,715,116 Community development 11,948,791 12,849,025 15,498,320 14,471,029 15,845,559 Parks and recreation 3,539,851 3,827,432 4,521,785 4,365,183 3,832,039 Public works 10,020,953 12,051,189 10,335,197 13,563,064 10,587,442 Interest on long-term debt 2,862,959 918,037 1,348,742 1,003,660 4,903,784 Total governmental activities expenses 86,292,845 95,372,906 100,787,239 103,116,792 106,101,840 Business-type activities:
Airport 931,989 1,131,440 1,230,891 1,745,924 1,603,543 Sewer and storm drain 838,433 933,015 2,342,547 884,469 709,837 Total business-type activities expenses 1,770,422 2,064,455 3,573,438 2,630,393 2,313,380 Total primary government expenses 88,063,267 97,437,361 104,360,677 105,747,185 108,415,220 Program Revenues:
Governmental Activities:
General government (1) 11,770,484 11,224,984 11,003,976 11,202,311 10,219,365 Public safety 9,250,179 5,460,890 5,673,185 6,089,974 5,006,103 Community development (1) 7,923,370 12,460,275 13,194,352 14,155,829 16,745,927 Parks and recreation 663,082 642,713 709,246 637,610 445,260 Public works 4,682,406 9,318,132 6,181,485 13,830,239 12,524,253 Total governmental activities program revenues 34,289,521 39,106,994 36,762,244 45,915,963 44,940,908 Business-type activities:
Airport 860,162 908,988 1,009,726 882,878 1,497,105 Sewer and storm drain 1,459,572 1,448,366 1,559,160 1,482,507 1,335,231 Total business-type activities program revenues 2,319,734 2,357,354 2,568,886 2,365,385 2,832,336 Total primary government program revenues 36,609,255 41,464,348 39,331,130 48,281,348 47,773,244 Net (expenses) revenues:
Governmental activities (52,003,324) (56,265,912) (64,024,995) (57,200,829) (61,160,932) Business-type activities 549,312 292,899 (1,004,552) (265,008) 518,956 Total primary government net (expenses)/revenues (51,454,012) (55,973,013) (65,029,547) (57,465,837) (60,641,976) 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-
2021 2022 2023 2024 2025
$ 10,495,723 13,076,135 $ 18,556,345 $ 16,820,840 $ 26,300,945 $ 8,867,389 64,422,256 100,223,524 71,667,280 67,271,419
14,158,033 16,134,233 16,020,080 18,779,695 18,027,905
3,234,730 3,588,888 5,755,134 6,092,428 5,578,935
11,318,323 11,234,733 14,305,443 15,874,801 14,195,033
4,699,446 4,882,047 4,535,860 4,439,565 6,220,201
52,773,644 113,338,292 159,396,386 133,674,609 137,594,438 808,620 1,155,254 1,209,697 1,466,634 1,306,868
642,025 706,086 385,151 933,692 986,956
1,450,645 1,861,340 1,594,848 2,400,326 2,293,824
54,224,289 115,199,632 160,991,234 136,074,935 139,888,262 12,193,870 10,261,589 20,180,711 20,969,476 15,332,290
6,732,123 5,999,374 8,085,082 7,047,480 8,792,545
17,614,291 17,223,580 20,152,742 27,553,728 29,001,721
562,525 307,385 568,916 970,295 689,745
9,131,706 6,908,300 9,335,044 12,572,803 11,163,342
46,234,515 40,700,228 58,322,495 69,113,782 64,979,643
1,993,209 1,023,571 1,000,940 1,035,369 1,225,683
1,490,743 1,399,410 1,636,519 1,231,979 1,331,501
3,483,952 2,422,981 2,637,459 2,267,348 2,557,184
49,718,467 43,123,209 60,959,954 71,381,130 67,536,827
(6,539,129) (72,638,064) (101,073,891) (64,560,827) (72,614,795) 2,033,307 561,641 1,042,611 (132,978) 263,360
(4,505,822) (72,076,423) (100,031,280) (64,693,805) (72,351,435) Fiscal Year
City of Hawthorne
Changes in Net Position, (continued)
Last Ten Fiscal Years
(accrual basis of accounting)
-193-
2016 2017 2018 2019 2020
General Revenues and Other Changes in Net
Positions:
Governmental activities:
Taxes:
Property taxes 14,693,230 $ 17,000,228 $ 17,212,040 $ 18,297,687 $ 19,494,231 $ Sales taxes 14,721,975 16,856,609 18,498,130 28,408,757 28,627,941 Transient occupancy taxes 4,806,401 5,200,111 5,412,476 5,970,823 5,548,885 Franchise taxes 1,809,159 1,724,565 1,765,717 2,171,334 1,980,644 Business license taxes 6,419,659 5,615,982 6,314,957 6,921,485 7,851,079 Utility users tax 6,667,384 6,613,873 6,726,815 6,358,691 6,476,401 Other taxes - - - - - Miscellaneous revenue 1,060,219 1,649,614 11,507,607 2,104,588 850,007 Gain on sale of assets - - - - 177,628 Use of money and property 69,833 40,189 100,699 410,090 999,325 Transfers in/(out) - - - - (2,490,447) Total governmental activities 50,247,860 54,701,171 67,538,441 70,643,455 69,515,694 Business-type activities:
Miscellaneous 23,963 5,874 12,195 7,071 36,546 Transfers in/(out) - - - - 2,490,447 Total business-type activities 23,963 5,874 12,195 7,071 2,526,993 Total primary government 50,271,823 54,707,045 67,550,636 70,650,526 72,042,687 Change in Net Position:
Governmental activities (1,755,464) (1,564,741) 3,513,446 13,442,626 8,354,762 Business-type activities 573,275 298,773 (992,357) (257,937) 3,045,949 Total primary government (1,182,189) $ (1,265,968) $ 2,521,089 $ 13,184,689 $ 11,400,711 $ Fiscal Year
Source: City of Hawthorne, Finance Department
-194-
2021 2022 2023 2024 2025
$ 21,799,982 20,793,917 $ 22,825,681 $ 24,417,302 $ 26,024,052 $ 38,271,401 32,184,097 40,393,795 36,012,398 36,632,700
6,071,367 4,186,432 7,891,009 6,846,103 7,458,960
2,536,844 2,277,912 3,090,928 3,693,594 2,084,128
9,456,866 6,293,567 9,452,193 10,541,480 9,809,437
7,459,343 6,837,852 8,792,532 8,029,444 9,846,539
- - 676,610 189,024 460,422
749,456 620,764 1,185,504 1,529,779 1,952,089
- - - - -
(1,166,634) 188,680 2,421,009 6,269,230 6,764,931
209,227 211,167 195,609 224,626 273,965
85,387,852 73,594,388 96,924,870 97,752,980 101,307,223 461,994 15,852 459,963 519,780 179,823
(209,227) (211,167) (195,609) (224,626) (273,965)
252,767 (195,315) 264,354 295,154 (94,142)
85,640,619 73,399,073 97,189,224 98,048,134 101,213,081 78,848,723 956,324 (4,149,021) 33,192,153 28,692,428
2,286,074 366,326 1,306,965 162,176 169,218 $ 81,134,797 1,322,650 $ (2,842,056) $ 33,354,329 $ 28,861,646 $ Fiscal Year
City of Hawthorne
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
-195-
2016 2017 2018 2019 2020
General Fund:
Nonspendable 3,217,524 $ 53,986 $ 49,432 $ 52,198 $ 80,632 $ Restricted - - - - - Unassigned 10,763,286 16,615,228 26,066,029 37,202,338 44,563,186 Total General Fund 13,980,810 16,669,214 26,115,461 37,254,536 44,643,818 All Other Governmental Funds:
Nonspendable 335,181 - - - 20,318 Restricted 15,412,581 17,790,488 21,191,173 21,997,889 28,952,064 Unassigned (1,874,224) (625,215) (911,566) (760,486) (2,123,366) Total all other governmental funds 13,873,538 17,165,273 20,279,607 21,237,403 26,849,016 Total governmental funds 27,854,348 $ 33,834,487 $ 46,395,068 $ 58,491,939 $ 71,492,834 $ Fiscal Year
Source: City of Hawthorne, Finance Department
-196-
2021 2022 2023 2024 2025
$ 69,652 1,900,896 $ 67,458 $ 70,471 $ 70,292 $
36,529 36,529 36,529 36,529 36,529
78,747,034 57,837,119 93,988,358 109,366,673 114,610,688 78,853,215 59,774,544 94,092,345 109,473,673 114,717,509 - - - 88,000 -
33,192,169 30,807,066 33,300,890 35,112,998 72,688,908
(3,259,095) (2,427,492) (4,449,863) (8,236,124) (13,122,011) 29,933,074 28,379,574 28,851,027 26,964,874 59,566,897 $ 108,786,289 88,154,118 $ 122,943,372 $ 136,438,547 $ 174,284,406 $ Fiscal Year
City of Hawthorne
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
-197-
2016 2017 2018 2019 2020
Revenues:
Taxes 54,107,964 $ 58,115,240 $ 63,954,559 $ 75,799,317 $ 73,088,871 $ Licenses and permits 2,291,930 2,535,471 3,384,070 4,121,946 3,861,839 Intergovernmental 16,469,698 22,245,586 21,283,289 22,515,800 24,208,218 Charges for services 2,500,544 2,412,936 2,325,798 2,631,104 2,605,973 Fines and forfeitures 3,934,011 5,850,331 3,101,340 4,241,409 4,621,263 Use of money and property 471,056 530,465 580,685 937,192 1,420,058 Contributions 188,206 873,620 888,145 3,670,175 4,640,773 Miscellaneous 5,279,485 5,392,496 12,435,535 4,093,289 2,025,498 Total Revenues 85,242,894 97,956,145 107,953,421 118,010,232 116,472,493 Expenditures:
Current:
General government (1) 9,517,701 9,388,771 10,130,387 12,073,085 32,079,731 Public safety 43,038,523 46,173,983 49,374,104 50,438,881 120,366,980 Community development (1) 12,590,103 12,747,063 14,603,141 13,807,096 24,445,268 Parks and recreation 3,467,866 3,654,856 3,743,089 3,767,113 10,795,897 Public works 8,202,451 13,565,765 11,786,057 18,750,519 21,327,728 Capital outlay 2,438,251 3,164,810 2,183,616 3,360,606 2,408,275 Debt service:
Principal retirement 4,010,186 5,473,428 2,365,154 2,414,644 4,718,303 Interest and fiscal charges 2,658,786 980,189 1,207,292 1,142,617 3,694,549 Bond issuance costs 941,625 108,692 - - 1,112,189 Total expenditures 86,865,492 95,257,557 95,392,840 105,754,561 220,948,920 Excess/(deficiency) of Revenues Over Expenditures (1,622,598) 2,698,588 12,560,581 12,255,671 (104,476,427) Other financing sources (uses):
Issuance of debt 31,803,741 2,730,900 - - 121,865,000 Premium on issuance of debt - - - - - Payment to bond escrow agent (29,910,984) - - - - Proceeds from disposal of assets - - - - 8,602 Lease acquisition - 550,651 - - - Subscription acquisition - - - - - Transfers in 5,894,967 2,759,313 2,804,428 2,950,318 8,423,404 Transfers out (5,894,967) (2,759,313) (2,804,428) (3,109,118) (12,819,684) Total other financing sources (uses) 1,892,757 3,281,551 - (158,800) 117,477,322 Net Change in Fund Balances 270,159 $ 5,980,139 $ 12,560,581 $ 12,096,871 $ 13,000,895 $ Debt service as a percentage of noncapital expenditures 7.89% 7.34% 4.05% 4.40% 3.89% 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
-198-
2021 2022 2023 2024 2025
$ 89,449,254 76,549,888 $ 97,282,234 $ 93,641,913 $ 98,719,050 $ 1,987,892 2,268,593 1,746,860 2,035,110 2,039,124
28,410,517 25,920,897 38,969,342 46,001,617 41,319,068
3,378,713 2,465,164 5,236,034 5,117,107 7,391,502
4,485,414 2,996,112 5,405,531 4,020,318 3,969,082
(686,139) 782,986 2,924,818 7,023,048 7,643,676
1,854,290 492,799 200,000 200,000 200,000
1,894,159 1,782,379 3,207,985 2,622,420 3,316,791
130,774,100 113,258,818 154,972,804 160,661,533 164,598,293 11,870,620 10,589,644 20,484,434 19,332,706 29,258,962
54,876,411 47,760,972 56,901,806 58,062,768 64,405,657
15,619,482 15,033,877 15,765,070 19,534,211 21,976,110
3,704,975 2,901,385 5,584,740 5,304,040 9,379,153
12,723,514 9,776,751 12,635,793 14,210,768 10,802,095
1,237,324 1,070,437 19,338,781 15,623,046 11,381,847
5,638,129 4,861,023 6,124,000 5,904,300 5,350,850
4,866,191 4,995,712 4,693,492 4,578,803 5,185,840
- - - - 439,453
110,536,646 96,989,801 141,528,116 142,550,642 158,179,967 20,237,454 16,269,017 13,444,688 18,110,891 6,418,326
- - - - 26,950,000
- - - - 3,489,453
- - - - -
- - - - -
- - - - 325,632
- - 400,042 - 1,236,976
12,375,331 11,510,975 17,532,349 31,895,480 17,893,110
(11,980,614) (11,118,708) (17,219,996) (36,511,196) (18,467,638) 394,717 392,267 712,395 (4,615,716) 31,427,533 $ 20,632,171 16,661,284 $ 14,157,083 $ 13,495,175 $ 37,845,859 $
10.53% 10.04% 9.04% 9.02% 7.83%
Fiscal Year
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City of Hawthorne
Assessed Value and Estimated Actual Value of Taxable Property (1) Last Ten Fiscal Years
-199-
Fiscal
Year
Ended
June 30 Secured Unsecured
Less:
Exemptions
Taxable
Assessed Value
Direct Tax
Rate (2)
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 2025 10,224,617,091 1,364,389,748 (116,396,307) 11,472,610,532 0.08605 Notes:
(2) Tax Rate Area 13-115.
Source: Los Angeles County Assessor 2024/25 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)
-200-
2016 2017 2018 2019 2020
City basic rate 0.09484 0.09484 0.09484 0.09484 0.09484 Redevelopment agency
Overlapping Rates
El Camino Community College 0.01745 0.02294 0.02120 0.02223 0.02155 Hawthorne School District 0.10176 0.09553 0.08818 0.08395 0.11025 Inglewood Unified School Dist 0.12761 0.11351 0.11675 0.13079 0.09832 LA Community College District 0.03575 0.03596 0.04599 0.04621 0.02717 Lawndale Elementary School Dist 0.04207 0.04064 0.06143 0.06385 0.06343 Lennox School District 0.08456 0.09078 0.16337 0.16522 0.17202 Los Angeles Unified School District 0.12971 0.13110 0.12219 0.12323 0.12552 Metropolitan Water District 0.00350 0.00350 0.00350 0.00350 0.00350 Wiseburn School District 0.13341 0.10166 0.11222 0.10532 0.11111 Wiseburn-Centinela Unified 0.14481 0.16592 0.13062 0.17572 0.15734 Total Direct Rate 0.09137 0.09174 0.09127 0.08993 0.08950 Notes:
Fiscal Year
(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. (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.
(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. -201-
2021 2022 2023 2024 2025
0.09484 0.09484 0.09484 0.09484 0.09484
0.02362 0.02264 0.02299 0.02116 0.02101
0.10069 0.09933 0.08637 0.06723 0.07167
0.09294 0.14381 0.12904 0.07881 0.06440
0.04016 0.04376 0.02488 0.06023 0.05136
0.06246 0.05494 0.05821 0.05750 0.08534
0.17062 0.16888 0.16320 0.16423 0.14441
0.13993 0.11323 0.12107 0.12422 0.12802
0.00350 0.00350 0.00350 0.00350 0.00700
0.08507 0.08631 0.09948 0.10150 0.10737
0.18371 0.17242 0.18567 0.14387 0.17592
0.08648 0.08939 0.08625 1.82225 1.85650
Fiscal Year
City of Hawthorne
Principal Property Taxpayers
Current Year and Nine Years Ago
-202-
2024/2025 2015/2016
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 874,193,612 $ 1 7.62 % CRESTONE DC ASSETS LLC 114,860,160 2 1.00
DCT CARGO LLC 93,014,587 3 0.81 68,403,006 $ 1 1.04 %
MOGUL HOSPITALITY PARTNERS HAWTHORNE LLC 92,576,402 4 0.81 FALCON LANDING LLC 73,441,029 5 0.64
M & A GABAEE
6 0.61 46,011,481 70,088,197 5 0.70
ASHFORD HAWTHORNE LP 69,518,617 7 0.61
COSTCO WHOLESALE CORPORATION 68,132,283 8 0.59 55,948,047 2 0.85 BSP ZELMAN HAWTHORNE LLC 68,010,966 9 0.59 42,961,274 6 0.65 EQUITY HOLDINGS LLC 63,362,712 10 0.55
RS HAWTHORNE LLC 52,089,500 3 0.79
RT ROCKET ROAD LLC 46,650,000 4 0.71
OCEANGATE PROPERTY LLC 40,244,879 7 0.61
2 LA CIENEGA INC 39,755,252 8 0.60
TRIUMPH AEROSTRUCTURES VOUGHT AIRCRAF 33,280,750 9 0.51 HAWTHORNE GATEWAY LP 32,537,498 10 0.49
Total 1,587,198,565 $ 13.83 % 457,881,687 $ 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 2024/2025 Combined Tax Rolls City of Hawthorne
Property Tax Levies and Collections
Last Ten Fiscal Years
-203-
Fiscal
Year Taxes Levied Collections in
Ended for the Fiscal Percentage Subsequent
June 30, Year Amount of Levy Years Amount Percentage
2016 $ 5,109,479 6,479,711 $ 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 2025 11,060,879 10,896,147 98.51 266,875 11,163,022 100.92 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
-204-
Fiscal
Year
General
Obligation Bonds
Revenue
Bonds
Notes
Payable
Capital
Leases
Loans
Payable
Lease / SBITA
Payable
Total Primary
Government
Percentage of
Personal
Income
Per
Capita
2016 31,684,772 $ 7,174,930 $ - $ 6,778 $ 3,218,691 $ - $ 42,085,171 $ 0.023 480 2017 30,032,646 4,353,127 2,587,550 482,893 2,856,328 - 40,312,544 0.022 454 2018 29,211,468 3,178,249 2,419,000 378,119 2,493,585 - 37,680,421 0.020 429 2019 27,752,014 2,618,249 2,247,100 269,455 2,130,448 - 35,017,266 0.018 399 2020 26,352,538 1,987,303 2,067,000 156,759 1,766,893 - 32,330,492 0.016 372 2021 141,764,586 1,354,131 1,884,150 39,880 1,757,899 - 146,800,646 0.066 1,687 2022 137,170,635 691,503 1,693,650 44,749 1,400,000 - 141,000,536 0.064 1,624 2023 132,121,683 - 1,501,150 15,964 1,045,000 - 134,683,797 0.053 1,572 2024 126,891,744 - 1,301,850 - - - 128,193,594 0.045 1,498 2025 121,591,297 30,337,677 1,096,000 - - 1,173,470 154,198,444 0.053 1,800 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
-205-
Fiscal
Year
General
Obligation Bonds
Revenue Bonds
(1) Total
Percent of
Assessed
Value (2) Per Capita
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 126,891,744 - 126,891,744 1.181 1,483
2025 121,591,297 30,337,677 151,928,974 1.324 1,774
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
-206-
2016 2017 2018 2019 2020
Total assessed valuation 6,583,853,815 $ 7,276,798,609 $ 7,726,172,392 $ 8,189,909,990 $ 8,630,805,267 $ Conversion percentage 25% 25% 25% 25% 25%
Adjusted assessed valuation 1,645,963,454 1,819,199,652 1,931,543,098 2,047,477,498 2,157,701,317 Debt limit percentage 15% 15% 15% 15% 15% Debt limit 246,894,518 272,879,948 289,731,465 307,121,625 323,655,198 Total net debt applicable to limit:
General obligation bonds - - - - - Legal debt margin 246,894,518 $ 272,879,948 $ 289,731,465 $ 307,121,625 $ 323,655,198 $ 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
-207-
2021 2022 2023 2024 2025
$ 9,404,578,626 9,176,580,892 $ 10,073,968,075 $ 10,741,271,088 $ 11,472,610,532 $ 25% 25% 25% 25% 25%
2,351,144,657 2,294,145,223 2,518,492,019 2,685,317,772 2,868,152,633 15% 15% 15% 15% 15% 352,671,698 344,121,783 377,773,803 402,797,666 430,222,895 - - - - - $ 352,671,698 344,121,783 $ 377,773,803 $ 402,797,666 $ 430,222,895 $
0.000% 0.000% 0.000% 0.000% 0.000%
Fiscal Year
City of Hawthorne
Pledged-Revenue Coverage
Last Ten Fiscal Years
-208-
Debt Service (2)
Fiscal Year Revenue Principal Interest Coverage
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 - - - 2025 1,500,000 - 778,556 - 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, 2025
-209-
2024-25 Assessed Valuation: $11,472,610,532
OVERLAPPING TAX AND ASSESMENT DEBT:
Metropolitan Water District 17,155,000.00 $ 0.282% $ 48,377 El Camino Community College District 480,045,366 6.672% 32,028,627 Los Angeles Community College District 4,919,505,000 0.078% 3,837,214 Los Angeles Unified School District 11,745,405,000 0.095% 11,158,135 Centinela Valley Union High School District 223,190,827 37.954% 84,709,846 Centinela Valley Union High School District SFID No. 2016-1 213,360,000 36.536% 77,953,210 Inglewood Unified School District 319,615,000 0.030% 95,885 Wiseburn Unified School District 152,564,464 14.694% 22,417,822 Hawthorne School District 62,991,440 97.312% 61,298,230 Lawndale School District 49,225,000 19.482% 9,590,015
Lennox School District 33,609,174 7.200% 2,419,861
City of Hawthorne Community Facilities District No. 2004-1 2,240,000 100% 2,240,000 City of Hawthorne Community Facilities District No. 2006-1 7,340,000 100% 7,340,000 TOTAL GROSS OVERLOPPING TAX & ASSESSMENT DEBT $ 315,137,221 Less: Los Angeles Unified School District supported general obligation bonds $ 438,169 TOTAL NET OVERLAPPING TAX AND ASSESSMENT DEBT $ 314,699,052 DIRECT AND OVERLAPPING GENERAL FUND DEBT:
Los Angeles County General Fund Obligations 3,036,637,390 $ 0.546% $ 16,580,040 Los Angeles County Superintendent of Schools Certificates of Participation 2,331,775 0.546% 12,731 Los Angeles Unified School District Certificates of Participation 225,010,000 0.095% 213,760 Centinela Valley Union High School District Certificates of Participation 4,895,000 58.991% 2,887,609 Inglewood Unified School District Certificates of Participation 975,000 0.030% 293 Wiseburn Unified School District General Fund Obligations 10,220,476 14.694% 1,501,797 Hawthorne School District Certificates of Participation 9,730,000 97.312% 9,468,458 Lennox School District Certificates of Participation 3,105,000 7.200% 223,560 City of Hawthorne General Fund Obligations 47,424,974 100% 47,424,974 City of Hawthorne Pension Obligation Bonds 105,600,000 100% 105,600,000 Lease and SBITA 1,173,470 100% 1,173,470
TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT $ 185,086,691 OVERLAPPING TAX INCREMENT DEBT (Successor Agency): 13,540,000.00 $ 100% $ 13,540,000 TOTAL DIRECT DEBT $ 154,198,444
TOTAL GROSS OVERLAPPING DEBT $ 359,565,468
TOTAL NET OVERLAPPING DEBT $ 359,127,299
(2) $ 513,763,912
$ 513,325,743
(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 2024-25 Assessed Valuation: Total Gross Overlapping Tax and Assessment Debt…………………………………… 2.75% Total Net Overlapping Tax and Assessment Debt………………………………………. 2.74% Total Direct Debt ($154,198,444)………………………………………………………….. 1.34% Gross Combined Total Debt……………………………………………………………….. 4.43% Net Combined Total debt…………………………………………………………………… 4.43% Ratios to Redevelopment Successor Agency Incremental Valuation ($2,782,924,355):
Total Overlapping Tax and Assessment Debt…………………………………………… 0.47% Total Debt 06/30/25 % Applicable (1)
City's Share of Debt
06/30/25
City of Hawthorne
Demographic and Economic Statistics
Last Ten Calendar Years
-210-
Fiscal
Year
Square
Miles Population
Population
Percentage
Change
Personal Income
(In Thousands)
Per Capita
Personal
Income (1)
Unemployment
Rate (2)
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%
2024 6.08 85,653 0.10% 2,891,771 33,761 5.7%
Sources:
HdL Coren & Cone
City of Hawthorne
Principal Employers
Current Year and Nine Years Ago
-211-
Employer
Number of
Employees
Percent of
Total
Employment
Number of
Employees
Percent of
Total
Employment
SpaceX - Space Exploration Technologies 7,661 17.57% 4,781 10.77% Hawthorne School District 1,063 2.44% 801 1.80%
Wiseburn Unified School District 530 1.22% 357 0.80%
Amazon Fulfillment Center (includes Ring HQ) 299 0.69%
OSI Systems Inc 275 0.63% 350 0.79%
Home Depot* 257 0.59% 0.70%
Teledyne Relays 254 0.58% 309 0.74%
City of Hawthorne 253 0.58% 328
South Bay Ford 174 0.40% 225 0.51%
Hawthorne Healthcare and Wellness Center 158 0.36%
Lithographix Inc 242 0.55%
Costco Wholesale 166 0.37%
Target 150 0.34%
Total 25.00% 7,709 10,924 17.36%
Total City Employment (1) 43,600 44,400
Source: MuniServices, LLC / Neumo
Source: FY2017, City of Hawthorne - ACFR Publication (Historical data is unavailable.) (1) Total City Labor Force provided by EDD Labor Force Data.
Notes:
*Includes FT, and PT Employment
2025 2017
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City of Hawthorne
Full-time and Part-time Employees by Function
Last Ten Fiscal Years
-212-
Function/Program: 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 General government 120 130 129 141 123 131 133 130 131 143 Public safety 112 100 99 97 98 94 97 88 90 91
Public works, streets maint 47 48 45 45 43 40 43 32 34 36 Comm dev-planning, building, housing 28 26 27 30 27 29 31 28 25 30 Recreation & Comm-serv, parks 84 99 92 100 90 89 71 88 85 121 Total 391 403 392 413 381 383 375 366 365 421
Source: City Finance Department.
Fiscal Year
City of Hawthorne
Operating Indicators by Function
Last Ten Years
-213-
Function/Program 2015-16 2016-17 2017-18 2018-19
General Government:
Number of business licenses issued 6,221 5,992 5,752 6,588 Number of requests for public information 152 223 201 179 Number of new hires including part-time 97 95 84 96 Number of invoices processed 9,478 21,887 20,958 19,501 Public Safety:
Police:
Number of emergency calls 51,402 40,002 39,703 40,658 Fire:
Contracts with the Los Angeles N/A N/A N/A N/A
Highways and Streets:
Number of street lights added in current year - 1 2 - Number of traffic signals added in current year - 1 - 2 Miles of streets swept 15,184 15,184 15,184 15,184 Storm drain structures cleaned and repaired 993 993 993 997 Culture and Recreation:
Number of facility rentals 867 889 847 1,044 Number of swim program participants 24,280 25,494 30,625 30,520 Number of adult sports participants 80 80 30 2,458 Number of youth sports participants 577 605 701 3,490 Number of senior nutrition program meals served 18,750 18,750 16,841 17,290 Community Development:
Number of building permits issued 712 594 775 695 Approximate number of building inspections conducted 7,020 4,000 6,200 6,475 Number of new business licenses issued 839 764 669 930 Source: Various City Departments. -214-
2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
6,016 6,001 5,351 5,910 6,308 5,556
276 188 233 387 353 435
80 39 62 62 86 55
18,842 19,486 19,218 19,533 19,638 20,261
42,395 42,221 41,298 40,508 40,655 37,421 N/A N/A N/A N/A N/A N/A 1 3 - 1 - -
- - - 1 1 1
15,184 15,184 15,184 15,184 15,184 15,184
997 997 997 997 997 997
95 300 1,350 1,325 1,295 1,152
21,352 11,757 18,043 19,056 19,990 21,052
200 1,708 2,972 3,052 2,056 -
200 2,442 4,268 4,986 5,830 3,895
34,272 13,125 29,120 29,120 28,564 25,982
802 644 629 359 130 197
3,323 4,000 4,180 3,399 5,967 6,405
531 686 479 150 468 654
City of Hawthorne
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
-215-
Function/Program 2016 2017 2018 2019
Public Safety:
Police (1)
Number of police stations 1 1 1 1 Number of emergency vehicles 99 96 96 101 Fire Number of fire stations (1) N/A N/A N/A N/A
Number of emergency vehicles N/A N/A N/A N/A
Highways and Streets:
Miles of streets (2) 91 91 91 91 Number of street lights 3,639 3,639 3,639 3,639 Culture and Recreation:
Parks 10 10 10 10 Acres of park land 50.38 50.38 50.38 47.14 Pools 1 1 1 2 Notes:
(1) The Fire station is owned by LA County. We contract the fire service (2) The number includes both California Edison Owned street lights and street light owned by City of Hawthorne
Sources: Various City departments.
-216-
2020 2021 2022 2023 2024 2025
1 1 1 1 1 1
105 113 105 113 118 118 N/A N/A N/A N/A N/A N/A
N/A N/A N/A N/A N/A N/A
91 91 91 91 91 91
3,645 3,639 3,645 3,645 3,645 3,645
10 10 10 10 10 10
57.06 47.14 57.06 57.06 57.06 57.06
2 2 2 2 2 2
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AGENDA ITEM NO. 12.
CITY OF HAWTHORNE
City Council
AGENDA BILL
For the meeting of 02/24/2026
Originating Department: Housing
City Manager: Department Head:
SUBJECT:
Approval of Memorandum of Understanding with the Los Angeles Dream Center for Homelessness Response Collaboration.
RECOMMENDED MOTION:
Staff recommends that the City Council:
1. Approve the Memorandum of Understanding (MOU) between the City of Hawthorne and the Los Angeles Dream Center; and
2. Authorize the City Manager to execute the MOU in a form approved by the City Attorney.
DISCUSSION:
BACKGROUND
On June 9, 2025, Hawthorne staff attended a site tour of the Los Angeles Dream Center to observe its homelessness outreach, case management, recovery services, food distribution, and transitional housing programs. The tour provided insight into the organization's operational capacity, service model, and potential alignment with the City's homelessness response efforts.
Following the visit, staff identified opportunities to formalize a collaborative framework that would enhance services for persons experiencing homelessness (PEH) within the City of Hawthorne.
The proposed MOU establishes a cooperative, non-binding framework to clarify roles, outline areas of collaboration, and promote coordinated service delivery consistent with each Party's mission and available resources.
DISCUSSION
The MOU outlines shared programmatic goals, including:
• Improving outreach and engagement to PEH within Hawthorne; • Increasing access to supportive services and referrals; • Enhancing coordination among service providers;
• Supporting City-led homelessness initiatives and events; and • Exploring grant and funding opportunities when appropriate.
Subject to availability and capacity, the Los Angeles Dream Center may provide services such as:
• Street-based outreach and engagement;
• Case management and service navigation;
• Referrals to emergency shelter, transitional housing, and recovery programs; • Food distribution and hunger relief;
• Clothing, hygiene, and basic needs assistance; and
• Life skills, employment readiness, and recovery-oriented programming.
The MOU also provides for collaboration during Monday PEH-focused events at the Hawthorne Memorial Center and other City-sponsored initiatives.
Importantly, the MOU:
• Is non-binding in nature;
• Does not obligate either Party to expend funds;
• Does not create a partnership or joint venture;
• Requires separate written agreements for any financial commitments or grant-funded activities; and
• Includes standard provisions related to confidentiality, indemnification, and compliance with applicable laws.
This agreement strengthens the City's ability to connect residents experiencing homelessness with established nonprofit service providers while maintaining fiscal and legal safeguards.
ECONOMIC DEVELOPMENT STRATEGIC PLAN:
This action supports the City's ongoing commitment to addressing homelessness through coordinated outreach, partnerships, and service alignment with qualified nonprofit organizations.
FISCAL IMPACT:
None.
NOTICING PROCEDURE:
72 hours posted notice pursuant to the Ralph M. Brown Act.
ATTACHMENTS
Dream Center - Hawthorne MOU
Los Angeles Dream Center Presentation
City of
Los Angeles Dream Center
www.dreamcenter.org
P r e s e n t a t i o n - 2 0 2 6
Hawthorne
Vision And Mission
Our Company
Our Vision
Our Mission
We envision a community where every person has the
opportunity to rise above struggles, realize their potential, and live with purpose, hope, and dignity. Through service, outreach, and leadership development, we strive to create lasting impact, one life at a time, across Los Angeles and beyond.
The Dream Center exists to transform lives and restore hope by providing free programs and resources that address
homelessness, hunger, addiction, and life-controlling
challenges. We empower individuals and families through education, mentorship, community, and hands-on support, enabling them to rebuild their lives and achieve lasting change. www.dreamcenter.org
Discipleship
Dream Center
The Dream Center’s Discipleship recovery program
is a one-year residential program designed to
support men and women who are overcoming lifecontrolling issues, and recovering from drug and alcohol addictions, depression, and abuse. This
program is structured to eliminate distractions so
that participants can focus on building a healthy
foundation to rebuild their lives. Food, housing,
education, and mentorship, are all provided free of
charge.
www.dreamcenter.org
Transitional Housing Programs
Dream Center
Veterans
The Dream Center Veterans Program is a one-year
residential program designed to help equip male and
female military veterans with the spiritual, practical, and foundational skills needed to transition back into civilian life.
In collaboration with local organizations, volunteers, and the Dream Center community, and by providing individualized assistance, the program enables veterans to develop
positive social skills, build life skills, find employment resources, continue in education, learn to utilize veterans’ benefits, and grow in a like-minded environment.
Foster Youth
Roughly 20% of youth who age out of Foster
Care end up homeless within the first two
years? Dedicated to helping youths who have
transitioned out of the foster care system, this
program supports young adults (ages 18-26)
by providing the resources for educational
learning and job training, along with a
supportive community and mentorship
www.dreamcenter.org
Family Floors
Dream Center
Thousands of struggling homeless families
have found refuge through our Transitional
Housing Program for Homeless Families. This
program provides the opportunity for
struggling homeless families to gain support
in spiritual, emotional, educational, financial
and vocational areas, while establishing
stability and engaging in community. To
equip these families, especially parents, for
long-term success, this program focuses on
building a strong foundation and provides
opportunities to transition out with a healthy
and sustainable future.
www.dreamcenter.org
Food Ministries
On-site
DC Diner
DC Food Bank
The Food Ministry is a cornerstone of the Dream
Center’s Food & Essential Resources pillar,
encompassing the operations of the Food Bank
and the DC Diner. It exists to alleviate hunger,
provide consistent access to nutritious meals,
and foster relational connection. The Diner
gives out more then 1,000 meals daily
The Dream Center’s Food Bank aims to meet the
surrounding community’s basic food needs while
supporting individuals’ transitions to a more
sustainable lifestyle. Every month, over half a million pounds of food gets distributed to various
communities through the Dream Center’s programs
including Food Truck outreach and Carey Kitchen, as
well as other service-led organizations. www.dreamcenter.org Clothing Outreach
Dream Center
Our vision is to build a compassionate Los Angeles
where every person — regardless of housing status or
income level — has access to clean, suitable clothing
that restores dignity, supports well-being, and fosters confidence. In a region where an estimated 75,000+
individuals experience homelessness on any given night
and many more families struggle with poverty and
clothing insecurity, we envision a network of communitydriven clothing support that reaches every neighborhood in need.
www.dreamcenter.org
www.dreamcenter.org
Adult Education
Dream Center
The Adult Education program provides
free individualized GED tutoring, life skills
classes, job readiness classes, and
additional coaching to Dream Center
program residents. This program is also
available to the general public. By
providing a safe, supportive learning
environment with qualified tutors,
teachers, and coaches, adults are
enabled to pursue higher education,
successful careers, financial stability, and
brighter futures.
The vision of the Care Team is to provide holistic,
trauma-informed, and faith-centered support to
vulnerable populations navigating instability and
transition. We are committed to walking alongside
families, individuals in recovery, veterans, and
fosterfyouthfexperiencingfhomelessness
addressing immediate crises while equipping
clients with practical tools, life skills, resources, and spiritual support necessary for long-term stability
and restored purpose.
ThekCarelTeamlseeksltolbreaklcycleslof
homelessness,daddiction,ddisconnection,dand
generational trauma by offering compassionate,
Christ-centeredfcaredgroundeddinddignity,
accountability, and hope, in alignment with the
Dream Center's Leadership Declaration.
Care Management
Dream Center
California Psychological Services is a family-owned and operated therapy practice that is committed to providing high quality, person-centered, accessible mental health services in order to share the Good News of the Gospel of Jesus Christ. Our mission is to meet those in need of care with quality services regardless of where they are in their faith journey. For those that are not interested in receiving Gospel-centered services, we provide services that respect their desire for care that is rooted in clinical best practice while not proselytizing, but embodying the love of Christ through providing compassion to those that are hurting. For those that desire to overtly incorporate the power of the Gospel into their services, we train clinicians to fully integrate the Gospel and Christian practices into their services. We commit to provide care that is accessible by joining all insurance networks, including Medi-Cal, so that people can use their benefits to access high quality, faith integrated services. Further, we strive to provide the best training and development to faith-based Clinicians in order to increase the number of mental health practitioners that can confidently integrate the power of the Gospel into their clinical work.
California Psychological Services
Off-site Outreaches
Dream Center
Food Truck
An estimated 2 million people in Los Angeles county live with food insecurity, which means 1 in 5 people who live here may not know where their next meal is coming from (Los Angeles Regional Food Bank, 2019). The Dream Center addresses this need by distributing food to individuals and families through multiple local distribution sites. On average, our food programs feed more than 20,000 people monthly. Over the course of a year, more than 500,000 bags of groceries are distributed.
Foster Care Intervention
The Foster Care Intervention team works with individual families who have open cases with the Department of Children and Family Services. We help families stay together by providing basic necessities and in many cases, the furniture they need.
Our goal in partnering with DCFS is to help loving families avoid separation, provide support families who are in the process of reunification and ultimately help close their case.
www.dreamcenter.org
www.dreamcenter.org
CONTACTUS
(213) 273-7000
2301Bellevue Ave. Los Angeles,CA 90026
[email protected]
Home About Us Content Contact
AGENDA ITEM NO. 13.
CITY OF HAWTHORNE
City Council
AGENDA BILL
For the meeting of 02/24/2026
Originating Department: Police Department
City Manager: Department Head:
SUBJECT:
Approval of Agreement with LA CADA for Homeless Outreach and Related Services; Appropriation of $100,000.00 from Opioid Settlement Funding.
RECOMMENDED MOTION:
Staff recommends that the City Council approve the one-year agreement between the City of Hawthorne and LA CADA (Los Angeles Centers for Alcohol and Drug Abuse) for homeless outreach and transportation services, and appropriating $100,000.00 from Opioid Settlement funding.
DISCUSSION:
The Hawthorne Police Department has maintained a longstanding and highly effective collaboration with LA CADA, a nonprofit organization specializing in behavioral health, addiction treatment, and homeless outreach services. Over several years, this partnership has successfully provided homeless outreach and transportation to unhoused individuals in the community. LA CADA has demonstrated exceptional professionalism, effectiveness, and dedication in supporting the Department's homeless outreach efforts.
To continue and formalize this partnership, staff proposes entering into a one-year agreement with LA CADA for the following services:
• Homeless outreach services five (5) days per week, from 6:00 AM to 9:00 AM, working directly alongside the Hawthorne Police Department's homeless outreach program. • Transportation of unhoused individuals seeking treatment, along with documentation of daily activities (typically occurring after 9:00 AM).
Funding for this program is available through Opioid Settlement funds, with approximately $100,000.00 anticipated annually for these allowable expenses (consistent with guidelines for abatement activities related to opioid impacts, including support for unhoused individuals affected by substance use). The agreement is for one year in the amount of $100,000.00.
The attached document outlining allowable expenses under the Opioid Settlement funding supports the use of these funds for this purpose. The proposed agreement will include scope of services, performance metrics, and other standard terms to ensure accountability and effectiveness.
This partnership has proven highly beneficial to the City's unhoused residents by facilitating connections to treatment, housing resources, and support services.
ECONOMIC DEVELOPMENT STRATEGIC PLAN:
N/A
FISCAL IMPACT:
Appropriation of $100,000.00 from the Opioid Settlement Fund. There will be no impact to the General Fund.
NOTICING PROCEDURE:
72 hours posted notice pursuant to the Ralph M. Brown Act.
ATTACHMENTS
Agreement with LA CADA
CA-OSF-Allowable-Expenses
1 CITY OF HAWTHORNE
AGREEMENT FOR CONSULTANT SERVICES
THIS CONSULTANT AGREEMENT ("Agreement”) is made and effective as of February 1, 2026 between the City of Hawthorne Police Department ("City") and Los Angeles Centers for Alcohol and Drug Abuse, a California nonprofit public-benefit corporation (“L.A. CADA” or "Consultant") (collectively, the “Parties”). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows:
1. TERM
This Agreement shall commence on February 1, 2026, and shall remain in effect for one (1) year through January 31, 2027 (“Initial Term”).
The Agreement may be renewed annually upon the City’s review and approval of the Consultant’s performance and compliance with the terms of this Agreement.
The City shall have the option, at its sole discretion, to extend the Agreement for one (1) additional one-year term, allowing the Agreement to be extended through January 31, 2028. To exercise this option, the City shall provide Consultant with written notice of its intent to extend at least ninety (90) days prior to the expiration of the Initial Term.
Upon the City’s provision of such notice, mutual agreement by the Parties on applicable work items and rates, and approval by the City Council, the Agreement shall be extended for an additional twelve (12) months.
2. SERVICES
Consultant shall perform the tasks described and set forth in Exhibit A, attached hereto and incorporated herein as though set forth in full, as part of its services.
Consultant may be asked to provide additional services if necessary during the term of this Agreement, in which case, the Parties will mutually agree upon such additional services, specifically as to the scope of work and compensation therefor, in a signed Amendment to this Agreement.
3. PERFORMANCE
Consultant shall at all times faithfully, competently and to the best of his/her ability, experience, and talent, perform all tasks described herein. Consultant shall employ, at a minimum, generally accepted standards and practices utilized by persons engaged in providing similar services as are required of Consultant hereunder in meeting its obligations under this Agreement.
2 4. PAYMENT
(a) The City agrees to pay Consultant in accordance with the payment rates and terms and the schedule of payment as set forth in Exhibit C, attached hereto and incorporated herein by this reference as though set forth in full, according to the Annual Contract Sum and Monthly Fee reflected in the Schedule of Compensation and Budget indicated in Exhibit C of this Agreement, unless additional payment is approved as provided in this Agreement.
(b) Consultant shall not be compensated for any services rendered in connection with its performance of this Agreement which are in addition to those set forth herein, unless such additional services are authorized in advance and in writing by the Chief of Police. Consultant shall be compensated for any additional services in the amounts and in the manner as agreed to by the Chief of Police and at the time the City's written authorization is given to Consultant for the performance of said services. Any such additional services will also be memorialized in an Amendment to this Agreement signed by all Parties.
(c) Consultant will submit invoices to support City’s payment of the Monthly Fee per the Schedule of Compensation in Exhibit C hereto. Payment shall be made within thirty (30) days of receipt of each invoice as to all non-disputed fees. If the City disputes any of Consultant's fees it shall give written notice to Consultant within thirty (30) days of receipt of an invoice of any disputed fees set forth on the invoice.
5. SUSPENSION OR TERMINATION OF AGREEMENT WITHOUT CAUSE (a) The City may at any time, for any reason, with or without cause, suspend or terminate this Agreement, or any portion hereof, by serving upon the consultant at least thirty (30) days prior written notice. Upon receipt of said notice, the Consultant shall immediately cease all work under this Agreement, unless the notice provides otherwise. If the City suspends or terminates a portion of this Agreement such suspension or termination shall not make void or invalidate the remainder of this Agreement.
(b) In the event this Agreement is terminated pursuant to this Section, the City shall pay to Consultant the pro-rated portions of any outstanding amounts of the Monthly Fee owed for services rendered up to the time of termination. Upon termination of the Agreement pursuant to this Section, the Consultant will submit an invoice to the City.
6. DEFAULT OF CONSULTANT
(a) The Consultant's failure to comply with the provisions of this Agreement shall constitute a default. In the event that Consultant is in default for cause under the terms of this Agreement, City shall have no obligation or duty to continue 3 compensating Consultant for any work performed after the date of default and can terminate this Agreement immediately by written notice to the Consultant. If such failure by the Consultant to make progress in the performance of work hereunder arises out of causes beyond the Consultant's control, and without fault or negligence of the Consultant, it shall not be considered a default. (b) If the Chief of Police or his delegate determines that the Consultant is in default in the performance of any of the terms or conditions of this Agreement, he/she shall cause to be served upon the Consultant a written notice of the default. The Consultant shall have ten (10) days after service upon it of said notice in which to cure the default by rendering a satisfactory performance. In the event that the Consultant fails to cure its default within such period of time, the City shall have the right, notwithstanding any other provision of this Agreement, to terminate this Agreement without further notice and without prejudice to any other remedy to which it may be entitled at law, in equity or under this Agreement.
7. OWNERSHIP OF DOCUMENTS
(a) Consultant shall maintain complete and accurate records with respect to sales, costs, expenses, receipts, and other such information required by City that relate to the performance of services under this Agreement. Consultant shall maintain adequate records of services provided in sufficient detail to permit an evaluation of services. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible.
Consultant shall provide free access to the representatives of City or its designees at reasonable times to such books and records; shall give City the right to examine and audit said books and records; shall permit City to make transcripts therefrom as necessary; and shall allow inspection of all work, data, documents, proceedings, and activities related to this Agreement. Such records, together with supporting documents, shall be maintained for a period of three (3) years after receipt of final payment.
(b) Upon completion of, or in the event of termination or suspension of this Agreement, all original documents, designs, drawings, maps, models, computer files, surveys, notes, and other documents prepared in the course of providing the services to be performed pursuant to this Agreement shall become the sole property of the City and may be used, reused, or otherwise disposed of by the City without the permission of the Consultant.