La Mesa City Council
November 12, 2025

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9. Conduct Traffic Enforcement operation(s), including but not limited to, primary crash factor violations.
7 10. Conduct highly publicized Distracted Driving enforcement operation(s) targeting drivers using hand held cell phones and texting.
5 11. Conduct highly publicized Motorcycle Safety enforcement operation(s) in areas or during events with a high number of motorcycle incidents or crashes resulting from unsafe speed, DUI, following too closely, unsafe lane changes, improper turning, and other primary crash factor violations by motorcyclists and other drivers. 1 12. Conduct highly publicized pedestrian and/or bicycle enforcement operation(s) in areas or during events with a high number of pedestrian and/or bicycle crashes resulting from violations made by pedestrians, bicyclists, and drivers. 2 13. Conduct Traffic Safety educational presentation(s) with an effort to reach community members. Note: Presentation(s) may include topics such as distracted driving, DUI, speed, bicycle and pedestrian safety, seat belts and child passenger safety.
2 14. Conduct Know Your Limit campaigns with an effort to reach members of the community.
4 15. Participate in highly visible collaborative DUI Enforcement operations. 1

16. Participate in highly visible collaborative Traffic Enforcement operations. 2

17. Participate in SFST/ARIDE/DRE POST-certified trainings for law enforcement officers.
2 3. METHOD OF PROCEDURE
A. Phase 1 Program Preparation (1st Quarter of Grant Year) outlined in the objectives section.

Conduct all training needed to implement the program, in the first quarter.

Purchase all grant related supplies and materials to implement the program, in the first quarter.

Items with a unit cost of $5,000 more (including tax and shipping) must comply with Buy America. dress, DOB,
description, current license status, and the number of times suspended or revoked for DUI. DUI BOLOs should be updated and distributed to traffic and patrol officers at least monthly.

Implementation of the STEP grant activities will be accomplished by deploying personnel at high crash locations.

Media Requirements
Issue a news release approved by the OTS PIO announcing the kick-off of the grant by December 31 and after the grant is signed and executed, but no sooner than October 1, the start of the grant year. The kick-off release must be approved by the OTS PIO. If you are unable to meet the December 31 deadline to issue a kick-off press release, communicate reasons to your OTS grant coordinator and OTS PIO.

B. Phase 2 Program Operations (Throughout Grant Year)
Media Requirements
The following requirements are for all grant-related activities:

Send all media advisories, alerts, videos, graphics, artwork, posters, radio/PSA/video scripts, storyboards, digital and/or print educational materials for grant-related activities to the OTS PIO at [email protected] for approval and copy your OTS grant coordinator. Optimum lead time would be 7 days before the scheduled release but at least 3 business days prior to the scheduled release date for review and approval is appreciated.

Send all PowerPoint presentations, online presentations and trainings for grant-related activities to the OTS PIO at [email protected] for approval and copy your OTS grant coordinator. Certified training courses are EXEMPT from the approval process.

The OTS PIO is responsible for the approval of the design and content of materials. The agency understands OTS PIO approval is not authorizing approval of budget expenditure or cost. Any cost approvals must come from the OTS grant coordinator.

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Pre-approval is not required when using any OTS-supplied template for media advisories, news releases, social media graphics, videos or posts, or any other OTS-supplied educational material.

However, copy the OTS PIO at [email protected] and your OTS grant coordinator when any material is distributed to the media and public, such as a news release, educational material, or link to social media post.

If an OTS-supplied template, educational material, social media graphic, post or video is substantially changed, the changes shall be sent to the OTS PIO at [email protected] for approval and copy your OTS grant coordinator.

News releases, social media posts and alerts on platforms such as NextDoor and Nixle reporting immediate and time-sensitive grant activities (e.g. enforcement operations, day of event highlights or announcements, event invites) are EXEMPT from the OTS PIO approval process.

The OTS PIO and your OTS grant coordinator should still be notified when the grant-related activity is happening (e.g. car seat checks, bicycle rodeos, community presentations, DUI checkpoints, etc.).

Enforcement activities such as warrant and probation sweeps, court stings, etc. that are embargoed or could impact operations by publicizing in advance are EXEMPT from the PIO approval process. However, announcements and results of activities should still be copied to the OTS PIO at [email protected] and your OTS grant coordinator with the embargoed date and time Any earned or paid media campaigns for TV, radio, digital or social media that are part of a specific grant objective, using OTS grant funds, or designed and developed using contractual services by a subgrantee, requires prior approval.

Social media posts highlighting state or national traffic safety campaigns (Distracted Driving Month, Motorcycle Safety Awareness Month, etc.), enforcement operations (DUI checkpoints, etc.), or any other grant-related activity such as Bicycle rodeos, presentations, or events, are highly encouraged but do not require prior approval.

Submit a draft or rough-cut of all digital, printed, recorded or video material (brochures, posters, scripts, artwork, trailer graphics, digital graphics, social posts connected to an earned or paid media campaign grant objective) to the OTS PIO at [email protected] and copy your OTS grant coordinator for approval prior to the production or duplication.

Use the following standard language in all press, media, and printed materials, space permitting:

Funding for this program was provided by a grant from the California Office of Traffic Safety, through the National Highway Traffic Safety Administration.

Space permitting, include the OTS logo on all grant-funded print materials, graphics and paid or earned social media campaign grant objective; consult the OTS PIO and copy your OTS grant coordinator for specifics, format-appropriate logos, or if space does not permit the use of the OTS logo.

Email the OTS PIO at [email protected] and copy your OTS grant coordinator at least 21 days in advance, or when first confirmed, a short description of any significant grant-related traffic safety event or program, particularly events that are highly publicized beforehand with anticipated media coverage so OTS has sufficient notice to arrange for attendance and/or participation in the event.

If unable to attend, email the OTS PIO and coordinator brief highlights and/or results, including any media coverage (broadcast, digital, print) of event within 7 days following significant grantrelated event or program. Media and program highlights are to be reflected in QPRs.

Any news releases, work plans, scripts, storyboards, artwork, graphics, videos or any educational or informational materials that received OTS PIO approval in a prior grant year needs to be resubmitted for approval in the current grant year.

For additional guidance, refer to the OTS Grants Materials Approval Process Guidelines and OTS Grants Media Approval Process FAQs on the OTS website.

Contact the OTS PIO or your OTS grant coordinator for consultation when changes from any of the above requirements might be warranted.

C. Phase 3 Data Collection & Reporting (Throughout Grant Year)

1. Prepare and submit grant claim invoices (due January 30, April 30, July 30, and October 30)

2. Prepare and submit Quarterly Performance Reports (QPR) (due January 30, April 30, July 30, and October 30)
Collect and report quarterly, appropriate data that supports the progress of goals and objectives.

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Provide a brief list of activity conducted, procurement of grant-funded items, and significant media activities. Include status of grant-funded personnel, status of contracts, challenges, or special accomplishments.

Provide a brief summary of quarterly accomplishments and explanations for objectives not completed or plans for upcoming activities.

Collect, analyze and report statistical data relating to the grant goals and objectives.

4. METHOD OF EVALUATION
the fourth/final Quarterly Performance Report (QPR). The Final Evaluation should provide a brief summary whether goals and objectives were met, exceeded, or an explanation of why objectives were not completed.

5. ADMINISTRATIVE SUPPORT
This program has full administrative support, and every effort will be made to continue the grant activities after grant conclusion.

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State of California Office of Traffic Safety

GRANT AGREEMENT
Schedule B

GRANT NUMBER
PT26141

FUND NUMBER CATALOG

NUMBER (CFDA)

FUND DESCRIPTION TOTAL AMOUNT
405e DDL-26 20.616 Distracted Driving Laws $12,000.00
402PT-26 20.600 State and Community Highway
Safety
$18,000.00
164AL-26 20.608 Minimum Penalties for Repeat
Offenders for Driving While
Intoxicated
$120,000.00

COST CATEGORY FUND
NUMBER

UNIT COST OR
RATE

UNITS TOTAL COST TO
GRANT
A. PERSONNEL COSTS
Straight Time
$0.00
Overtime
DUI/DL Checkpoints 164AL-26 $6,875.00 6 $41,250.00
DUI Saturation Patrols 164AL-26 $2,800.00 12 $33,600.00 Know Your Limit 164AL-26 $1,500.00 4 $6,000.00
Collaborative DUI Enforcement 164AL-26 $2,400.00 1 $2,400.00 SFST/ARIDE/DRE Instruction 164AL-26 $1,000.00 2 $2,000.00 Benefits- 164OT @ 6.15% 164AL-26 $85,250.00 1 $5,243.00 Traffic Enforcement 402PT-26 $1,050.00 7 $7,350.00
Motorcycle Safety Enforcement 402PT-26 $1,050.00 1 $1,050.00 Pedestrian and Bicycle Enforcement 402PT-26 $1,200.00 2 $2,400.00 Collaborative Traffic Enforcement 402PT-26 $1,200.00 2 $2,400.00 Benefits- 402OT @ 6.15% 402PT-26 $12,800.00 1 $787.00
Distracted Driving Enforcement 405e DDL26 $2,260.00 5 $11,300.00 Benefits- 405eOT @ 6.15% 405e DDL26 $11,390.00 1 $700.00 Category Sub-Total $116,480.00
B. TRAVEL EXPENSES
In State Travel 402PT-26 $4,013.00 1 $4,013.00
$0.00
Category Sub-Total $4,013.00
C. CONTRACTUAL SERVICES
$0.00
Category Sub-Total $0.00
D. EQUIPMENT DUI Trailer 164AL-26 $25,000.00 1 $25,000.00 Category Sub-Total $25,000.00
E. OTHER DIRECT COSTS
PAS Device/Calibration Supplies 164AL-26 $600.00 4 $2,400.00 DUI Checkpoint Supplies 164AL-26 $2,107.00 1 $2,107.00
Category Sub-Total $4,507.00
F. INDIRECT COSTS
$0.00

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Category Sub-Total $0.00
GRANT TOTAL $150,000.00

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State of California Office of Traffic Safety

GRANT AGREEMENT
Schedule B-1

GRANT NUMBER
PT26141

BUDGET NARRATIVE

PERSONNEL COSTS
DUI/DL Checkpoints - Overtime for grant funded law enforcement operations conducted by appropriate department personnel.

DUI Saturation Patrols - Overtime for grant funded law enforcement operations conducted by appropriate department personnel.

Know Your Limit - Overtime for grant funded traffic safety presentations or campaigns conducted by appropriate department personnel.

Collaborative DUI Enforcement - Overtime for grant funded Collaborative DUI Enforcement operations conducted by appropriate department personnel
SFST/ARIDE/DRE Instruction - Overtime for grant funded instructor training conducted by appropriate department personnel.

Benefits- 164OT @ 6.15% - Benefit Breakdown
Medicare 1.45%
Workers Comp 4.45%
Unemployment .25%
Total 6.15%
Claimed amounts must reflect actual benefit costs for overtime hours charged to the grant.

Traffic Enforcement - Overtime for grant funded law enforcement operations conducted by appropriate department personnel.

Motorcycle Safety Enforcement - Overtime for grant funded law enforcement operations conducted by appropriate department personnel.

Pedestrian and Bicycle Enforcement - Overtime for grant funded law enforcement operations conducted by appropriate department personnel.

Collaborative Traffic Enforcement - Overtime for grant funded Collaborative Traffic Enforcement operations conducted by appropriate department personnel
Benefits- 402OT @ 6.15% - Benefit Breakdown
Medicare 1.45%
Workers Comp 4.45%
Unemployment .25%
Total 6.15%
Claimed amounts must reflect actual benefit costs for overtime hours charged to the grant.

Distracted Driving Enforcement - Overtime for grant funded law enforcement operations conducted by appropriate department personnel.

Benefits- 405eOT @ 6.15% - Benefit Breakdown
Medicare 1.45%
Workers Comp 4.45%
Unemployment .25%
Total 6.15%
Claimed amounts must reflect actual benefit costs for overtime hours charged to the grant.

TRAVEL EXPENSES
In State Travel - Costs are included for appropriate staff to attend conferences and training events supporting the grant goals and objectives and/or traffic safety. Local mileage for grant activities and meetings is included. Anticipated travel may include the OTS Traffic Safety Law Enforcement Forum. All conferences, seminars or training not specifically identified in the Budget Narrative must be approved by OTS. All travel claimed must be at the agency approved rate. Per Diem may not be claimed for meals provided at conferences when registration fees are paid with OTS grant funds.

CONTRACTUAL SERVICES

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-EQUIPMENT
DUI Trailer-Fully equipped trailer to transport DUI checkpoint supplies and to serve as a communication and command post during OTS operations. Costs may include the trailer, sales tax, delivery, installation costs, and other modifications and accessories or other items necessary to make the trailer usable for grant purposes, such as a generator, lighting, paint and graphics. The trailer cannot include any furniture or fixtures not affixed to the trailer.

OTHER DIRECT COSTS
PAS Device/Calibration Supplies - Preliminary alcohol screening device to detect the presence of alcohol in a person's breath and calibration supplies to ensure accuracy. Costs may include mouth pieces, gas and accessories.

DUI Checkpoint Supplies - On-scene supplies needed to conduct sobriety checkpoints. Costs may include 28" traffic cones, MUTCD compliant traffic signs, MUTCD compliant high visibility vests (maximum of 10), traffic counters (maximum of 2), generator, gas for generators, lighting, reflective banners, electronic flares, PAS Device Supplies, PAS Calibration Supplies, heater, propane for heaters, fan, anti-fatigue mats, and canopies. Additional items may be purchased if approved by OTS. The cost of food and beverages will not be reimbursed.

INDIRECT COSTS
-STATEMENTS/DISCLAIMERS
There will be no program income generated from this grant. enforcement officer issue a specified or predetermined number of citations in pursuance of the goals and objectives here under.

The OTS grant funded activities must be separate from the CHP Cannabis Tax Fund Grant Program activities and maintained under separate accounting/tracking/other codes (example: the same DUI checkpoint may not be funded by both the CHP and the OTS).

Benefits for personnel costs can only be applied to straight time or overtime hours charged to the grant.

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State of California Office of Traffic Safety

GRANT AGREEMENT
Exhibit A

GRANT NUMBER
PT26141
Appendix A to Part 1300 Certifications and Assurances for Highway Safety Grants (23 U.S.C. Chapter 4 or Section 1906, Public Law 109-59, as amended by Section 25024, Public Law 117- 58)
The officials named on the grant agreement, certify by way of signature on the grant agreement signature page, that the Grantee Agency complies with all applicable Federal statutes, regulations, and directives and State rules, guidelines, policies, and laws in effect with respect to the periods for which it receives grant funding.

Applicable provisions include, but are not limited to, the following:

GENERAL REQUIREMENTS
The State will comply with applicable statutes and regulations, including but not limited to:
23 U.S.C. Chapter 4 Highway Safety Act of 1966, as amended; Sec. 1906, Public Law 109-59, as amended by Sec. 25024, Public Law 117-58; 23 CFR part 1300 Uniform Procedures for State Highway Safety Grant Programs; 2 CFR part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards;
2 CFR part 1201 Department of Transportation, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.

NONDISCRIMINATION
(applies to subrecipients as well as States)
The State highway safety agency [and its subrecipients] will comply with all Federal statutes and implementing limited to:

Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq., 78 stat. 252), (prohibits discrimination on the basis of race, color, national origin);
49 CFR part 21 (entitled Non-discrimination in Federally-Assisted Programs of the Department of Transportation Effectuation of Title VI of the Civil Rights Act of 1964); 28 CFR 50.3 (U.S. Department of Justice Guidelines for Enforcement of Title VI of the Civil Rights Act of 1964);
The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, (42 U.S.C. 4601), (prohibits unfair treatment of persons displaced or whose property has been acquired because of Federal or Federal-aid programs and projects);
Federal-Aid Highway Act of 1973, (23 U.S.C. 324 et seq.), and Title IX of the Education Amendments of 1972, as amended (20 U.S.C. 1681-1683 and 1685-1686) (prohibit discrimination on the basis of sex);
Section 504 of the Rehabilitation Act of 1973, (29 U.S.C. 794 et seq.), as amended, (prohibits discrimination on the basis of disability) and 49 CFR part 27; The Age Discrimination Act of 1975, as amended, (42 U.S.C. 6101 et seq.), (prohibits discrimination on the basis of age);
The Civil Rights Restoration Act of 1987, (Pub. L. 100-209), (broadens scope, coverage, and applicability of Title VI of the Civil Rights Act of 1964, The Age Discrimination Act of 1975 and Section 504 of the Rehabilitation Act of 1973, by expanding the definition include all of the programs or activities of the
Federal aid recipients, subrecipients and contractors, whether such programs or activities are Federallyfunded or not); Titles II and III of the Americans with Disabilities Act (42 U.S.C. 12131-12189) (prohibits discrimination on the basis of disability in the operation of public entities, public and private transportation systems, places of public accommodation, and certain testing) and 49 CFR parts 37 and 38

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The preceding statutory and regulatory cites hereinafter are referred to as the respectively.

GENERAL ASSURANCES
In accordance with the Acts, the Regulations, and other pertinent directives, circulars, policy, memoranda, and/or guidance, the Recipient hereby gives assurance that it will promptly take any measures necessary to ensure that:
the United States shall, on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination under any program or activity, for which the Recipient receives Federal financial assistance from The Civil Rights Restoration Act of 1987 clarified the original intent of Congress, with respect to Title VI of the Civil Rights Act of 1964 and other non-discrimination requirements (the Age Discrimination Act of 1975, and Section 504 of the Rehabilitation Act of 1973), by restoring the broad, institutional-wide scope and coverage of these nondiscrimination statutes and requirements to include all programs and activities of the Recipient, so long as any portion of the program is Federally assisted.

SPECIFIC ASSURANCES
More specifically, and without limiting the above general Assurance, the Recipient agrees with and gives the following Assurances with respect to its Federally assisted Highway Safety Grant Program:

1. 49 CFR part 21 will be (with regard to an facilitated, operated, or will be (with regard to a in compliance with all requirements imposed by, or pursuant to the Acts and the Regulations.

2. The Recipient will insert the following notification in all solicitations for bids, Requests For Proposals for work, or material subject to the Acts and the Regulations made in connection with all Highway Safety Grant Programs and, in adapted form, in all proposals for negotiated agreements regardless of funding source:
the Civil Rights Act of
1964 (78 Stat. 252, 42 U.S.C 2000d to 2000d-4) and the Regulations, hereby notifies all bidders that it will affirmatively ensure that in any contract entered into pursuant to this advertisement, disadvantaged business enterprises will be afforded full and fair opportunity to submit bids in response to this invitation and will not be discriminated against on the grounds of race, color, or national origin

3. The Recipient will insert the clauses of appendix A and E of this Assurance (also referred to as DOT order 1050.2A) [1]in every contract or agreement subject to the Acts and the Regulations.

4. The Recipient will insert the clauses of appendix B of DOT Order 1050.2A, as a covenant running with the land, in any deed from the United States effecting or recording a transfer of real property, structures, use, or improvements thereon or interest therein to a Recipient.

5. That where the Recipient receives Federal financial assistance to construct a facility, or part of a facility, the Assurance will extend to the entire facility and facilities operated in connection therewith.

6. That where the Recipient receives Federal financial assistance in the form of, or for the acquisition of, real property or an interest in real property, the Assurance will extend to rights to space on, over, or under such property.

7. That the Recipient will include the clauses set forth in appendix C and appendix D of this DOT Order 1050.2A, as a covenant running with the land, in any future deeds, leases, licenses, permits, or similar instruments entered into by the Recipient with other parties:
a. for the subsequent transfer of real property acquired or improved under the applicable activity, project, or program; and
b. for the construction or use of, or access to, space on, over, or under real property acquired or improved under the applicable activity, project, or program.

8. That this Assurance obligates the Recipient for the period during which Federal financial assistance is extended to the program, except where the Federal financial assistance is to provide, or is in the

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form of, personal property, or real property, or interest therein, or structures or improvements thereon, in which case the Assurance obligates the Recipient, or any transferee for the longer of the following periods:
a. the period during which the property is used for a purpose for which the Federal financial assistance is extended, or for another purpose involving the provision of similar services or benefits; or
b. the period during which the Recipient retains ownership or possession of the property.

9. The Recipient will provide for such methods of administration for the program as are found by the Secretary of Transportation or the official to whom he/she delegates specific authority to give reasonable guarantee that it, other recipients, sub-recipients, sub- grantees, contractors, subcontractors, consultants, transferees, successors in interest, and other participants of Federal financial assistance under such program will comply with all requirements imposed or pursuant to the Acts, the Regulations, and this Assurance.

10. The Recipient agrees that the United States has a right to seek judicial enforcement with regard to any matter arising under the Acts, the Regulations, and this Assurance.

By signing this ASSURANCE, the State highway safety agency also agrees to comply (and require any subrecipients, sub-grantees, contractors, successors, transferees, and/or assignees to comply) with all applicable provisions governing NHTSA's access to records, accounts, documents, information, facilities, and staff. You also recognize that you must comply with any program or compliance reviews, and/or complaint investigations conducted by NHTSA. You must keep records, reports, and submit the material for review upon request to NHTSA, or its designee in a timely, complete, and accurate way. Additionally, you must comply with all other reporting, data collection, and evaluation requirements, as prescribed by law or detailed in program guidance.

The State highway safety agency gives this ASSURANCE in consideration of and for obtaining any Federal grants, loans, contracts, agreements, property, and/or discounts, or other Federal-aid and Federal financial assistance extended after the date hereof to the recipients by the U.S. Department of Transportation under the Highway Safety Grant Program. This ASSURANCE is binding on the State highway safety agency, other recipients, sub-recipients, sub-grantees, contractors, subcontractors and their subcontractors', transferees, successors in interest, and any other participants in the Highway Safety Grant Program. The person(s) signing below is/are authorized to sign this ASSURANCE on behalf of the Recipient.

THE DRUG-FREE WORKPLACE ACT OF 1988 (41 U.S.C. 8103)
The Subgrantee will provide a drug-free workplace by:
a. Publishing a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession or use of a controlled substance is prohibited in the grantee's workplace, and specifying the actions that will be taken against employees for violation of such prohibition; b. Establishing a drug-free awareness program to inform employees about:

1. The dangers of drug abuse in the workplace;

2. The grantee's policy of maintaining a drug-free workplace;

3. Any available drug counseling, rehabilitation, and employee assistance programs;

4. The penalties that may be imposed upon employees for drug violations occurring in the workplace;

5. Making it a requirement that each employee engaged in the performance of the grant be given a copy of the statement required by paragraph (a); c. Notifying the employee in the statement required by paragraph (a) that, as a condition of employment under the grant, the employee will

1. Abide by the terms of the statement;

2. Notify the employer of any criminal drug statute conviction for a violation occurring in the workplace no later than five days after such conviction; d. Notifying the agency within ten days after receiving notice under subparagraph (c)(2) from an employee or otherwise receiving actual notice of such conviction; e. Taking one of the following actions, within 30 days of receiving notice under subparagraph (c)(2), with respect to any employee who is so convicted

1. Taking appropriate personnel action against such an employee, up to and including termination;

2. Requiring such employee to participate satisfactorily in a drug abuse assistance or

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rehabilitation program approved for such purposes by a Federal, State, or local health, law enforcement, or other appropriate agency;
f. Making a good faith effort to continue to maintain a drug-free workplace through implementation of all of the paragraphs above.

POLITICAL ACTIVITY (HATCH ACT)
(applies to subrecipients as well as States)
The State will comply with provisions of the Hatch Act (5 U.S.C. 1501-1508), which limits the political activities of employees whose principal employment activities are funded in whole or in part with Federal funds.

CERTIFICATION REGARDING FEDERAL LOBBYING
(applies to subrecipients as well as States)

CERTIFICATION FOR CONTRACTS, GRANTS, LOANS, AND COOPERATIVE AGREEMENTS The undersigned certifies, to the best of his or her knowledge and belief, that:

1. No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement;

2. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form-LLL,
instructions;

3. The undersigned shall require that the language of this certification be included in the award documents for all sub-awards at all tiers (including subcontracts, subgrants, and contracts under grant, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly.

This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure.

RESTRICTION ON STATE LOBBYING
(applies to subrecipients as well as States)
None of the funds under this program will be used for any activity specifically designed to urge or influence a State or local legislator to favor or oppose the adoption of any specific legislative proposal pending before any State or local legislative body. Such activities include both direct and indirect (e.g., lobbying activities, with one exception. This does not preclude a State official whose salary is supported with NHTSA funds from engaging in direct communications with State or local legislative officials, in accordance with customary State practice, even if such communications urge legislative officials to favor or oppose the adoption of a specific pending legislative proposal.

CERTIFICATION REGARDING DEBARMENT AND SUSPENSION
(applies to subrecipients as well as States)

INSTRUCTIONS FOR PRIMARY TIER PARTICIPANT CERTIFICATION (STATES)

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1. By signing and submitting this proposal, the prospective primary tier participant is providing the certification set out below and agrees to comply with the requirements of 2 CFR parts 180 and 1200. 2. The inability of a person to provide the certification required below will not necessarily result in denial of participation in this covered transaction. The prospective primary tier participant shall submit an explanation of why it cannot provide the certification set out below. The certification or explanation will be considered in connection with the department or agency's determination whether to enter into this transaction. However, failure of the prospective primary tier participant to furnish a certification or an explanation shall disqualify such person from participation in this transaction.

3. The certification in this clause is a material representation of fact upon which reliance was placed when the department or agency determined to enter into this transaction. If it is later determined that the prospective primary tier participant knowingly rendered an erroneous certification, in addition to other remedies available to the Federal Government, the department or agency may terminate this transaction for cause or default or may pursue suspension or debarment.

4. The prospective primary tier participant shall provide immediate written notice to the department or agency to which this proposal is submitted if at any time the prospective primary tier participant learns its certification was erroneous when submitted or has become erroneous by reason of changed circumstances.

5. The terms covered transaction, civil judgment, debarment, suspension, ineligible, participant, person, principal, and voluntarily excluded, as used in this clause, are defined in 2 CFR parts 180 and 1200. You may contact the department or agency to which this proposal is being submitted for assistance in obtaining a copy of those regulations.

6. The prospective primary tier participant agrees by submitting this proposal that, should the proposed covered transaction be entered into, it shall not knowingly enter into any lower tier covered transaction with a person who is proposed for debarment under 48 CFR part 9, subpart 9.4, debarred, suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction, unless authorized by the department or agency entering into this transaction.

7. The prospective primary tier participant further agrees by submitting this proposal that it will include Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion Lower Tier Covered provided by the department or agency entering into this covered transaction, without modification, in all lower tier covered transactions and in all solicitations for lower tier covered transactions and will require lower tier participants to comply with 2 CFR parts 180 and 1200. 8. A participant in a covered transaction may rely upon a certification of a prospective participant in a lower tier covered transaction that it is not proposed for debarment under 48 CFR part 9, subpart

9.4, debarred, suspended, ineligible, or voluntarily excluded from the covered transaction, unless it knows that the certification is erroneous. A participant is responsible for ensuring that its principals are not suspended, debarred, or otherwise ineligible to participate in covered transactions. To verify the eligibility of its principals, as well as the eligibility of any prospective lower tier participants, each participant may, but is not required to, check the System for Award Management Exclusions website
( https://www.sam.gov/).

9. Nothing contained in the foregoing shall be construed to require establishment of a system of records in order to render in good faith the certification required by this clause. The knowledge and information of a participant is not required to exceed that which is normally possessed by a prudent person in the ordinary course of business dealings.

10. Except for transactions authorized under paragraph 6 of these instructions, if a participant in a covered transaction knowingly enters into a lower tier covered transaction with a person who is proposed for debarment under 48 CFR part 9, subpart 9.4, suspended, debarred, ineligible, or voluntarily excluded from participation in this transaction, in addition to other remedies available to the Federal Government, the department or agency may terminate the transaction for cause or default.

CERTIFICATION REGARDING DEBARMENT, SUSPENSION, AND OTHER RESPONSIBILITY MATTERS PRIMARY TIER

COVERED TRANSACTIONS

1. The prospective primary tier participant certifies to the best of its knowledge and belief, that it and

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its principals:
a. Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participating in covered transactions by any Federal department or agency;
b. Have not within a three-year period preceding this proposal been convicted of or had a civil judgment rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (Federal, State, or local) transaction or contract under a public transaction; violation of Federal or State antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property; c. Are not presently indicted for or otherwise criminally or civilly charged by a governmental entity (Federal, State, or local) with commission of any of the offenses enumerated in paragraph (1)(b) of this certification; and d. Have not within a three-year period preceding this application/proposal had one or more public transactions (Federal, State, or local) terminated for cause or default.

2. Where the prospective primary tier participant is unable to certify to any of the Statements in this certification, such prospective participant shall attach an explanation to this proposal.

INSTRUCTIONS FOR LOWER TIER PARTICIPANT CERTIFICATION

1. By signing and submitting this proposal, the prospective lower tier participant is providing the certification set out below and agrees to comply with the requirements of 2 CFR parts 180 and 1200. 2. The certification in this clause is a material representation of fact upon which reliance was placed when this transaction was entered into. If it is later determined that the prospective lower tier participant knowingly rendered an erroneous certification, in addition to other remedies available to the Federal Government, the department or agency with which this transaction originated may pursue available remedies, including suspension or debarment.

3. The prospective lower tier participant shall provide immediate written notice to the person to which this proposal is submitted if at any time the prospective lower tier participant learns that its certification was erroneous when submitted or has become erroneous by reason of changed circumstances.

4. The terms covered transaction, civil judgment, debarment, suspension, ineligible, participant, person, principal, and voluntarily excluded, as used in this clause, are defined in 2 CFR parts 180 and 1200. You may contact the person to whom this proposal is submitted for assistance in obtaining a copy of those regulations.

5. The prospective lower tier participant agrees by submitting this proposal that, should the proposed covered transaction be entered into, it shall not knowingly enter into any lower tier covered transaction with a person who is proposed for debarment under 48 CFR part 9, subpart 9.4, debarred, suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction, unless authorized by the department or agency with which this transaction originated.

6. The prospective lower tier participant further agrees by submitting this proposal that it will include the clause titled
Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion Lower Tier Covered tier covered transactions and in all solicitations for
lower tier covered transactions and will require lower tier participants to comply with 2 CFR parts 180 and 1200. 7. A participant in a covered transaction may rely upon a certification of a prospective participant in a lower tier covered transaction that it is not proposed for debarment under 48 CFR part 9, subpart

9.4, debarred, suspended, ineligible, or voluntarily excluded from the covered transaction, unless it knows that the certification is erroneous. A participant is responsible for ensuring that its principals are not suspended, debarred, or otherwise ineligible to participate in covered transactions. To verify the eligibility of its principals, as well as the eligibility of any prospective lower tier participants, each participant may, but is not required to, check the System for Award Management Exclusions website
( https://www.sam.gov/).

8. Nothing contained in the foregoing shall be construed to require establishment of a system of

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records in order to render in good faith the certification required by this clause. The knowledge and information of a participant is not required to exceed that which is normally possessed by a prudent person in the ordinary course of business dealings.

9. Except for transactions authorized under paragraph 5 of these instructions, if a participant in a covered transaction knowingly enters into a lower tier covered transaction with a person who is proposed for debarment under 48 CFR part 9, subpart 9.4, suspended, debarred, ineligible, or voluntarily excluded from participation in this transaction, in addition to other remedies available to the Federal Government, the department or agency with which this transaction originated may pursue available remedies, including suspension or debarment.

CERTIFICATION REGARDING DEBARMENT, SUSPENSION, INELIGIBILITY AND VOLUNTARY EXCLUSION LOWER TIER

COVERED TRANSACTIONS

1. The prospective lower tier participant certifies, by submission of this proposal, that neither it nor its principals is presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participating in covered transactions by any Federal department or agency.

2. Where the prospective lower tier participant is unable to certify to any of the statements in this certification, such prospective participant shall attach an explanation to this proposal.

BUY AMERICA
(applies to subrecipients as well as States)
The State and each subrecipient will comply with the Buy America requirement (23 U.S.C. 313) when purchasing items using Federal funds. Buy America requires a State, or subrecipient, to purchase with Federal funds only steel, iron and manufactured products produced in the United States, unless the Secretary of Transportation determines that such domestically produced items would be inconsistent with the public interest, that such materials are not reasonably available and of a satisfactory quality, or that inclusion of domestic materials will increase the cost of the overall project contract by more than 25 percent. In order to use Federal funds to purchase foreign produced items, the State must submit a waiver request that provides an adequate basis and justification for approval by the Secretary of Transportation.

CERTIFICATION ON CONFLICT OF INTEREST
(applies to subrecipients as well as States)

GENERAL REQUIREMENTS
No employee, officer, or agent of a State or its subrecipient who is authorized in an official capacity to negotiate, make, accept, or approve, or to take part in negotiating, making, accepting, or approving any subaward, including contracts or subcontracts, in connection with this grant shall have, directly or indirectly, any financial or personal interest in any such subaward. Such a financial or personal interest would arise when the employee, officer, or agent, any member of his or her immediate family, his or her partner, or an organization which employs or is about to employ any of the parties indicated herein, has a financial or personal interest in or a tangible personal benefit from an entity considered for a subaward. Based on this policy:

1. The recipient shall maintain a written code or standards of conduct that provide for disciplinary actions to be applied for violations of such standards by officers, employees, or agents. a. The code or standards shall provide that the recipient's officers, employees, or agents may neither solicit nor accept gratuities, favors, or anything of monetary value from present or potential subawardees, including contractors or parties to subcontracts. b. The code or standards shall establish penalties, sanctions, or other disciplinary actions for violations, as permitted by State or local law or regulations.

2. The recipient shall maintain responsibility to enforce the requirements of the written code or standards of conduct.

DISCLOSURE REQUIREMENTS

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No State or its subrecipient, including its officers, employees, or agents, shall perform or continue to perform under a grant or cooperative agreement, whose objectivity may be impaired because of any related past, present, or currently planned interest, financial or otherwise, in organizations regulated by NHTSA or in organizations whose interests may be substantially affected by NHTSA activities. Based on this policy:

1. The recipient shall disclose any conflict of interest identified as soon as reasonably possible, making an immediate and full disclosure in writing to NHTSA. The disclosure shall include a description of the action which the recipient has taken or proposes to take to avoid or mitigate such conflict.

2. NHTSA will review the disclosure and may require additional relevant information from the recipient.

If a conflict of interest is found to exist, NHTSA may (a) terminate the award, or (b) determine that it is otherwise in the best interest of NHTSA to continue the award and include appropriate provisions to mitigate or avoid such conflict.

3. Conflicts of interest that require disclosure include all past, present, or currently planned organizational, financial, contractual, or other interest(s) with an organization regulated by NHTSA or with an organization whose interests may be substantially affected by NHTSA activities, and which are related to this award. The interest(s) that require disclosure include those of any recipient, affiliate, proposed consultant, proposed subcontractor, and key personnel of any of the above. Past interest shall be limited to within one year of the date of award. Key personnel shall include any person owning more than a 20 percent interest in a recipient, and the officers, employees or agents of a recipient who are responsible for making a decision or taking an action under an award where the decision or action can have an economic or other impact on the interests of a regulated or affected organization.

PROHIBITION ON USING GRANT FUNDS TO CHECK FOR HELMET USAGE (applies to subrecipients as well as States)
The State and each subrecipient will not use 23 U.S.C. Chapter 4 grant funds for programs to check helmet usage or to create checkpoints that specifically target motorcyclists.

POLICY ON SEAT BELT USE
In accordance with Executive Order 13043, Increasing Seat Belt Use in the United States, dated April 16, 1997, the Grantee is encouraged to adopt and enforce on-the-job seat belt use policies and programs for its employees when operating company-owned, rented, or personally-owned vehicles. The National Highway Traffic Safety Administration (NHTSA) is responsible for providing leadership and guidance in support of this Presidential initiative. For information and resources on traffic safety programs and policies for employers, please contact the Network of Employers for Traffic Safety (NETS), a public-private partnership dedicated to improving the traffic safety practices of employers and employees. You can download information on seat belt programs, costs of motor vehicle crashes to employers, and other traffic safety initiatives at www.trafficsafety.org. The NHTSA website ( www.nhtsa.gov) also provides information on statistics, campaigns, and program evaluations and references.

POLICY ON BANNING TEXT MESSAGING WHILE DRIVING
In accordance with Executive Order 13513, Federal Leadership On Reducing Text Messaging While Driving, and DOT Order 3902.10, Text Messaging While Driving, States are encouraged to adopt and enforce workplace safety policies to decrease crashes caused by distracted driving, including policies to ban text messaging while driving company-owned or rented vehicles, Government-owned, leased or rented vehicles, or privately-owned vehicles when on official Government business or when performing any work on or behalf of the Government. States are also encouraged to conduct workplace safety initiatives in a manner commensurate with the size of the business, such as establishment of new rules and programs or reevaluation of existing programs to prohibit text messaging while driving, and education, awareness, and other outreach to employees about the safety risks associated with texting while driving.

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INSTRUCTIONS FOR ADDING OR UPDATING GEMS USERS

1. Each agency is allowed a total of FIVE (5) GEMS Users. 2. GEMS Users listed on this form will be authorized to login to GEMS to complete and submit Quarterly Performance Reports (QPRs) and reimbursement claims.

3. Complete the form if adding, removing or editing a GEMS user(s).

4. The Grant Director must sign this form and return it with the Grant Agreement.

CURRENT GEMS USER(S)

1. Daniel Garcia
Title: Sergeant Media Contact: Yes
Phone: (619) 667-7576
Email: [email protected]

2. William Wilson
Title: Sergeant Media Contact: Yes
Phone: (619) 667-7551
Email: [email protected]
State of California Office of Traffic Safety
OTS-55 Grant Electronic Management System (GEMS) Access Exhibit C

GRANT NUMBER
PT26141

GRANT DETAILS
Grant Number: PT26141
Agency Name: La Mesa Police Department
Grant Title: Selective Traffic Enforcement Program (STEP) Agreement Total: $150,000.00
Authorizing Official: Raymond Sweeney
Fiscal Official: John Herrera
Grant Director: William Wilson

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Complete the below information if adding, removing or editing a GEMS user(s) GEMS User 1
Add/Change {{[]c11_es_:signer1}} Remove Access {{[] c12_es_:signer1}} Add as a media contact? Yes {{[]c1_es_:signer1}} No{{[]c2_es_:signer1}} {{UserName1_es_:signer1 }} {{UserTitle1_es_:signer1 }}
Name Job Title
{{UserEmail1_es_:signer1 }} {{UserPhone1_es_:signer1 }} Email address Phone number
GEMS User 2
Add/Change {{[]c13_es_:signer1}} Remove Access {{[]c14_es_:signer1}} Add as a media contact? Yes {{[]c3_es_:signer1}}No {{[]c4_es_:signer1}} {{UserName2_es_:signer1 }} {{UserTitle2_es_:signer1 }}
Name Job Title
{{UserEmail2_es_:signer1 }} {{UserPhone2_es_:signer1 }} Email address Phone number
GEMS User 3
Add/Change {{[]c15_es_:signer1}} Remove Access {{[]c16_es_:signer1}} Add as a media contact? Yes {{[]c5_es_:signer1}}No {{[]c6_es_:signer1}} {{UserName3_es_:signer1 }} {{UserTitle3_es_:signer1 }}
Name Job Title
{{UserEmail3_es_:signer1 }} {{UserPhone3_es_:signer1 }} Email address Phone number
GEMS User 4
Add/Change {{[]c17_es_:signer1}} Remove Access {{[]c18_es_:signer1}} Add as a media contact? Yes {{[]c8_es_:signer1}}No {{[]c7_es_:signer1}} {{UserName4_es_:signer1 }} {{UserTitle4_es_:signer1 }}
Name Job Title
{{UserEmail4_es_:signer1 }} {{UserPhone4_es_:signer1 }} Email address Phone number
GEMS User 5
Add/Change {{[]c19_es_:signer1}} Remove Access {{[]c20_es_:signer1}} Add as a media contact? Yes {{[]c9_es_:signer1}}No {{[]c10_es_:signer1}} {{UserName5_es_:signer1 }} {{UserTitle5_es_:signer1 }}
Name Job Title
{{UserEmail5_es_:signer1 }} {{UserPhone5_es_:signer1 }} Email address Phone number
Form completed by: {{Sig_es_:signer1:signature}} Date: {{Dte1_es_:signer1:date}} As a signatory I hereby authorize the listed individual(s) to represent and have GEMS user access. {{Sig_es_:signer2:signature}} {{Name1_es_:signer2:fullname }} Signature Name
{{Dte2_es_:signer2:date}} Grant Director
Date Title

DATE: November 12, 2025
TO: Mayor and Members of the City Council
FROM: Ray Sweeney, Chief of Police
VIA: Greg Humora, City Manager
SUBJECT: HOMELESS OUTREACH AND MOBILE ENGAGEMENT (“HOME”) PROGRAM QUARTERLY REPORT (JULY 2025 – SEPTEMBER 2025)
Please see the attached report.

City of La Mesa
Homeless Outreach &
Mobile Engagement (HOME) Program
Quarterly Report: July – September 2025

HOME Program Overview
The Homeless Outreach and Mobile Engagement (HOME) Team is an initiative of the City of La Mesa and the La Mesa Police Department (LMPD). The HOME Team provides a housing-first and traumainformed approach to addressing homelessness in La Mesa. The HOME Team utilizes progressive engagement and harm reduction to assist individuals who are unable to access homeless services on their own. This report breaks down the the HOME Team efforts and successes during the 3 rd quarter
of 2025.

Since the beginning of the quarter, the HOME program outreach specialists have:
 Contacted 172 total individuals experiencing homelessness and newly enrolled 74 adults and 21 children. Many of these newly enrolled adults are one-time contacts that were provided shortterm services as they passed through La Mesa. A total of 57 individuals contacted this quarter were connected to a temporary or permanent home.
 Responded to 680 service calls routed through LMPD dispatch, HOME hotline or city email, and as follow-ups to previous contacts. Historically, many of these calls would have been handled by city emergency response services and law enforcement.  Prioritized the most vulnerable individuals in the City of La Mesa, including individuals living on the street with chronic physical and mental health conditions, households with children, and individuals facing chronic homelessness.

Clients Served
The HOME Team operates out of LMPD headquarters in downtown La Mesa and responds to nonemergency calls for service related to homelessness that are generated through police dispatch, HOME email, and The HOME Hotline. Each of these calls is first attended by a HOME Team outreach specialist; PD or PERT officers are only requested for rare cases involving legal or safety concerns. 98 74
Total Number of Clients Served
New Clients in Quarter Continuing Clients
172
Instances of
Service*
381
Calls for
Service
680
HOME Team Assistance: 43
# of Calls LMPD Officers
requested HOME assistance
# of Calls the HOME team
requested:

Officer Assistance: 5
PERT Assistance: 0
*Instances of service are included in the total calls for service. This number represent interactions with clients that are enrolled in the county’s case management system. More than one client may be present during a single call for service.

Client Demographics and Household Composition
Housing Outcomes
37 households (57 people) people left the HOME program to a temporary or permanent placement during the quarter.
13 households (17 persons) exited to temporary housing, defined as an emergency shelter, transitional housing, or other location that provides housing/shelter without tenure.
24 households (40 people) exited to permanent housing, defined as a leased unit meeting United States Department of Housing and Urban Development (HUD) occupancy standards with or without supportive services, such as mental health counseling.
23 housing matches was provided through the Coordinated Entry System.

Single Person
Households
79 Adult Couple
Households
11 2
78 94
Female Male
32 13
23 25
36 33
10 0
0 to 17 18 to 24
25 to 34 35 to 44
45 to 54 55 to 64
65 or Above Unknown
Total Clients Served Demographics
Chronically
Homeless
56% Households
with Children
92

Housing Matches
Housing matches provided through the Coordinated Entry System (CES) are an essential part of people attempting to access permanent housing. In short, a housing match is when a person is connected to a housing provider for assistance in the form of a subsidized room or ongoing rental assistance. Once a person has been matched through CES, the HOME Team does their best to help a client connect with the housing provider to complete the housing process. During this quarter, the HOME Team clients received 23 housing matches.

Client Services
The HOME Team continues to excel in helping clients navigate and connect with a variety of existing services within the community. Some of these services include ongoing nutritional, medical, and financial support through programs such as Cal-Fresh, Medical, and General Relief.

The HOME Team was able to connect multiple people with these services by transporting and supporting these clients in navigating these services at the Family Resource Centers located in Lemon Grove and El Cajon.

The HOME Team continues to provide housing navigation throughout this quarter. Housing Navigation aids individuals who have an income, housing voucher, or rental assistance subsidies that could support a rental unit on an ongoing basis. The HOME Team Housing Navigator works with these clients to identify suitable units, pay for application fees, advocate to landlords, and provide financial assistance to cover the move-in costs related to the rental unit.

The HOME Team also continues to assist with acquiring identifying documentation. Almost all of the clients who successfully exited the program during this quarter worked with the HOME Team to acquire both State Identification cards and/ or Social Security Cards; attaining these documents was a necessity for their housing placements.

The HOME Team continues to work closely with a non-profit: 2 nd Chance. This non-profit provides a
Job Readiness Training (JRT) course for clients who struggle with connecting to employment due to their homelessness status and/ or involvement with the justice system. As part of the JRT, the participants are provided with professional interview attire. During the last week of JRT, the participants take part in a round of interviews with potential employers including but not limited to Western Towing, ACE Parking, and Sycuan Casino.

Having consistent access to a van continues to be an important resource for clients. During the quarter, the HOME Team utilized the van to view units for rent in El Cajon, Downtown San Diego, and San Diego County. Being able to go to units quickly and with little notice has resulted in clients being able to successfully exit our program into rental assistance programs. The HOME Team has also utilized this van to clear encampments by taking clients and their belongings to storage, housing opportunities, or alternative camping locations. Most importantly, this van is accessible to people that have disabilities or are experiencing mobility issues.

During this quarter, the HOME Team provided some form of financial and/or basic-needs assistance to all enrolled clients with the dual objectives of moving them toward a housing outcome and keeping them safe during the COVID-19 pandemic. These objectives have not changed throughout this quarter.

All clients received COVID-19-related services, including updates related to local public-health guidelines, vaccine information, hygiene supplies, and personal protective equipment (PPE), such as face masks and hand sanitizer.

All clients received food, water, or other nutrition services, with approximately 60 prioritized for on-going meal support.

HOME program staff distributed 43,306.39 in direct financial assistance, including vehicle repair, and funds used to secure new rental units. 3 household (4 persons) received accommodation in a motel, designed to provide short-term, bridge shelter for those with a concrete housing plan.

HOME program staff arranged 15 rides to apartment viewings, shelter stays, program intake interviews, and other critical appointments via ridesharing service.
23 Clients were connected to ongoing physical, mental, and/or behavioral healthcare.
19 Instances of clients connected to CA ID, Birth Certificate, and/ or Social Security Card.
12 Instances of clients connected to Cal Fresh and/ or Medi-Cal. 1 of clients connected to Serving Seniors.
3 Instances of people enrolled into employment training and support

Ongoing Care
Throughout the life of the program, HOME has noticed that the majority of calls related to someone experiencing homelessness were generated because of another community member’s concern for a person’s mental, physical, or behavioral health. Because of this, the HOME Team has prioritized connecting people to ongoing healthcare through organizations such as Family Health Centers, East County Behavioral Health, Jane Westin, Alvarado Parkway Institute, McAlister, Peoples Advocacy Voices & Education. and Volunteers in Medicine. All of these organizations provide low to no-cost services to people experiencing homelessness. Connecting people to ongoing and preventative care such as what is being offered at these organizations is essential to addressing issues that invariably result in emergent health situations for people experiencing homelessness. These situations result in over-burdend emergency rooms, ambulances, and other emergency services. Additionally, due to the limited nature of HOME services provided to a person after they are housed, having connections to ongoing community support is an important part of someone maintaining housing stability.

Calls for Service
The HOME Team responded to 680 calls for service during the quarter. This number includes service calls routed through LMPD dispatch, HOME hotline or city email, and follow-ups to previous contacts.

Of these calls for service, 133 calls were new requests for assistance related to homelessness in the City. Historically, these calls would have been addressed by city emergency response services and law enforcement.

Of these calls, 276 were direct responses to calls to the HOME hotline and email requests made by community members regarding someone experiencing homelessness.

Additionally, 293 calls were service-driven appointments with clients or proactive rapport-building contacts, in support of the HOME Team’s mission.

During the entirety of this quarter, the HOME Team was connected to the La Mesa Police Department’s dispatch center via police radio. Starting the 4th quarter of 2021, the HOME Team has been able to realize the benefits of the technology and partnerships with call-takers through decreased response times to current calls for service, improved support to police officers, enhanced understanding of the program workload and service provision through data tracking, and improved safety of the HOME Team members and the community.

Hotel Utilization
The HOME Team provided a hotel stay for 3 households and 4 clients during the quarter. One of the clients utilizing bridge-housing was a veteran who agreed to go into an emergency shelter outside the City of La Mesa. Due to the coordination necessary for this accommodation, the client was going to need to wait a few days for the bed to become available and an intake to be scheduled. To bridge this gap, the HOME Team was able to utilize a local hotel to help this veteran avoid unsheltered homelessness before receiving their accommodation. All of the other clients who utilized bridge housing were able to move into long-term housing by signing one-year leases at local properties.

Client success stories
In June 2025, the HOME Team encountered a veteran who reported experiencing homelessness since 2019. After meeting with this individual, the team began building rapport and exploring available resources that could support them. The veteran shared that while they were aware the VA offered some services, they did not realize the VA specifically provided housing support. They also felt they lacked the guidance needed to begin accessing these services.

The HOME Team quickly connected the veteran to a VA-funded program operated through PATH called Supportive Services for Veteran Families (SSVF). SSVF is a housing-first program that assists veterans in securing housing through rental assistance while they work toward financial stability and self-sufficiency.

To help the veteran fully utilize this program, the HOME Team assisted with obtaining a California LifeLine-funded phone and provided transportation to view potential rental units. Before moving into housing, the team also connected the veteran to Stand Down, an annual event in San Diego that offers veterans access to essential services. At this event, the veteran began the process of being assessed for service-related disabilities and connected with an employment program designed to help veterans reenter the civilian workforce. After several unit viewings, the veteran successfully secured housing on August 20, 2025.

Veteran is pictured (with permission) below:

In April 2025, the HOME Team met a 58-year-old man who began experiencing homelessness following a divorce. He had previously worked as a commercial truck driver but lost his Commercial Driver’s License (CDL) due to substance use.

There was an extended engagement period with this individual. Early on, he was hesitant to accept many of the resources offered by the HOME Team. During this time, his large encampment generated numerous calls for service from La Mesa community members, often resulting in contacts with the La Mesa Police Department, the HOME Team, and Public Works, followed by encampment cleanups.

Over time, this client chose to engage with PAVE, one of the treatment providers that conducts outreach alongside the HOME Team. Through this connection, he began participating in Substance Use Disorder (SUD) treatment and moved into a sober living residence operated by PAVE. He also started attending outpatient SUD support groups through McAlister.

Last month, the HOME Team helped the client complete his Department of Transportation (DOT) physical, a key step toward reinstating his CDL and returning to work. The client has expressed sincere gratitude to both the HOME Team and the La Mesa Police Department, sharing that his ongoing interactions with Officer Wilson gave him the motivation he needed to begin changing his life.

Community Support Partnerships
 Journey Community Church continues to provide any and all food items to the HOME Program, allowing HOME staff to feed up to 60 people per week
 La Mesa Village Association
 La Mesa Thrift Shop
 La Mesa First United Methodist Church
 Empire Thrift Store of El Cajon
 Eagle Scouts
Community Resource Partnerships
 Home-Start, Inc.
 East County Behavioral Health
 Center Star ACT
 McAlister Inc.
 La Mesa – Spring Valley School District Social Workers  East County Homeless Task Force
 San Diego County Mental Health
 HOME staff have developed a word-of-mouth network of donors and residents and regularly interface with anyone interested in helping those facing hardship on the streets of La Mesa.  Assisted Replacement Medication Therapy Medical Specialists  The Lodge of La Mesa (Transition Age Youth)
 Borrego Health-Centro Medico El Cajon
 New Found Homes ILF
 Mission Academy
 2
nd Chance
 Alvarado Parkway Institute
 Bayview Crisis Stabilization Unit
 Volunteers in Medicine
 Serving Seniors

HOME Program Historical Statistics
Client Enrollment
Quarter Total Clients
Served New Clients Continuing Clients
Q4 2020 56 n/a n/a
Q1 2021 108 61 47
Q2 2021 75 44 31
Q3 2021 86 44 31
Q4 2021 25 10 15
Q1 2022 69 48 21
Q2 2022 96 62 34
Q3 2022 73 38 35
Q4 2022 108 65 43
Q1 2023 71 28 43
Q2 2023 72 53 19
Q3 2023 71 43 28
Q4 2023 56 27 29
Q1 2024 43 29 14
Q2 2024 40 21 19
Q3 2024 39 24 15
Q4 2024 57 40 17
Q1 2025 95 24 71
Q2 2025 174 120 54
Q3 2025 172 98 74
Grand
Total 1586 879 640

Calls for Service
Quarter Instances of
Service1 Calls for Service
Calls Officers
requested
HOME
Assistance
Calls HOME
requested
Officer
Assistance
Calls HOME
requested
PERT
assistance
Q4 2020 191 110 --- 1 1
Q1 2021 397 187 --- 0 1
Q2 2021 349 355 --- 0 0
Q3 2021 393 134 --- 0 0
Q4 2021 237 81 --- 0 0
Q1 2022 373 617 24 10 0
Q2 2022 626 657 11 22 4
Q3 2022 584 549 26 5 1
Q4 2022 744 417 16 3 0
Q1 2023 633 435 19 7 0
Q2 2023 494 384 16 2 0
Q3 2023 173 447 12 3 0
Q4 2023 274 391 24 3 0
Q1 2024 273 443 19 2 0
Q2 2024 261 473 13 9 0
Q3 2024 244 463 23 12 0
Q4 2024 358 448 10 5 0
Q1 2025 476 465 11 5 1
Q2 2025 358 631 16 7 0
Q3 2025 381 680 43 5 0
Grand Total 7819 8367 283 101 8
1 Instances of service are included in the total calls for service. This number represent interactions with clients that are enrolled in the county’s case management system. More than one client may be present during a single call for service.

Services and Housing
Quarter HOME
Rides
Direct Financial
Assistance
Clients who
Received
Motel
Vouchers
Clients
Permanently
Housed
Households
Permanently
Housed
Clients
Temporarily
Housed
Households
Temporarily
Housed
Q4 2020 18 $ 3,357.00 7 5 --- 3 ---
Q1 2021 16 $ 10,506.00 7 --- 4 --- 19
Q2 2021 7 $ 4,967.00 9 8 7 --- 5
Q3 2021 144 $ 16,623.42 7 8 3 --- 5
Q4 2021 84 $ 1,071.40 0 12 11 --- 4
Q1 2022 92 $ 6,579.56 5 10 9 6 6
Q2 2022 96 $ 3,727.96 2 16 11 5 3
Q3 2022 68 $ 3,445.75 3 8 6 4 4
Q4 2022 69 $ 3,411.55 3 15 6 2 2
Q1 2023 56 $ 2,210.47 2 17 7 2 2
Q2 2023 59 $ 2,581.44 0 4 2 5 5
Q3 2023 59 $ 7,560.47 2 2 2 6 6
Q4 2023 91 $ 1,344.96 1 10 8 1 1
Q1 2024 52 $ 3,506.91 1 7 6 1 7
Q2 2024 86 $ 8,428.53 0 9 4 5 5
Q3 2024 61 $ 20,935.20 1 4 2 2 2
Q4 2024 56 $ 8,895.15 1 7 7 2 2
Q1 2025 58 $ 10,007.91 0 15 6 3 8
Q2 2025 23 $ 8,895.15 0 7 7 9 9
Q3 2025 15 $ 43,306.39 4 40 24 17 13
Grand
Total 1210 $ 171,362.22 55 204 132 73 108
Total People
Housed 277

REPORT to the MAYOR and MEMBERS of the CITY COUNCIL
From the CITY MANAGER
DATE: November 12, 2025
SUBJECT: RESOLUTION AUTHORIZING AN INCREASE IN

PROJECT REIMBURSEMENT EXPENDITURES AND

APPROVING A RELATED CHANGE ORDER FOR THE

SEWER INFLOW AND INFILTRATION PROJECT,
PHASE 6 (CAPITAL IMPROVEMENT PROJECT NO.
8103), IN THE AMOUNT OF $9,618,582
ISSUING DEPARTMENT: Public Works
SUMMARY:

Issues:

Should the City Council increase the authorized amount related to the reimbursement of project expenditures and approve a related Change Order for the Inflow and Infiltration Mitigation Project Phase 6 (CIP No. 8103) from $7,000,000 to $9,618,582?
Recommendation:

Increase the authorized amount related to the reimbursement of project expenditures and approve a related Change Order for the Inflow and Infiltration Mitigation Project Phase 6 (CIP No. 8103) from $7,000,000 to $9,618,582.

Fiscal Impact:

Funds for the repayment of the SRF loan are secured from wastewater revenues.

The City has an existing funding agreement signed with the State of California with authorization to expend up to $7,000,000 at a 1.65% interest rate. This action is part of a request that would increase the loan amount authorization from $7,000,000 to $9,618,582.

All expenditures for this loan will be made solely from wastewater funds. No General Fund monies will be used for this project.

Report to Mayor and Councilmembers
Date: November 12, 2025
Page: 2 of 3
City’s Strategic Goals:
 Invest in infrastructure to serve the needs of the community.

Environmental Review:

The project received environmental review and has completed a Class 2 16302(c) Notice of Exemption that is on record at the County of San Diego.

Climate Action Plan Reduction Strategy:

This item indirectly supports implementation of CAP Measure W-3, Pure Water Program, by reducing the inflow and infiltration to the sewer system requiring treatment.

BACKGROUND:

The City has an existing loan agreement to fund the Phase 6 Sewer Project to a level of $7,000,000 at an interest rate of 1.65%. Resolution 2021-044 approving the reimbursement of the $7,000,000 is included as Attachment B. The project, which consists of sewer replacement within the Vista La Mesa neighborhood, is currently in construction with a completion date of September 2026. A project map is included as Attachment C.

The City has additional bid additives that may be negotiated with the contractor and which would expand the current scope of the project. These additives include sewer pipe lining and the relocation of existing sewer lines on Violet and Paula Streets.

The City had initiated conversation with the State Water Resources Control Board (Loan Agency) about increasing the loan from $7,000,000 to $9,618.582 to explore funding the bid additives. This would increase the annual payment amount of the loan by approximately $159,000 per year. Existing low interest SRF Loans that the City is in repayment is included as Attachment D.

DISCUSSION:

The base bid (majority) of the project is currently being funded and constructed under the existing $7,000,000 loan authorization. Expanding the loan amount would allow the City to negotiate with the contactor to complete the additives as part of the current project.

The loan interest rate (1.65%) and availability of the contractor to perform the work

Report to Mayor and Councilmembers
Date: November 12, 2025
Page: 3 of 3
provides good value for the City to complete the additives by expanding the existing loan agreement. If the City and SC Valley Construction, the contractor, cannot come to an agreement on the price of the additives, the City will not award the extra work. It is recommended to authorize the Mayor to approve a related Change Order.

CONCLUSION:

Staff recommends that the City Council adopt the attached resolution increasing the authorized amount related to the Reimbursement of Project Expenditures for (CIP No. 8103) the Inflow and Infiltration Mitigation Project Phase 6 from $7,000,000 to $9,618,582 and authorizing the Mayor to approve the change order to the project.

Reviewed by: Respectfully submitted by:
____________________ ____________________________
Greg Humora Michael Throne, PE
City Manager Director of Public Works
Attachments: Attachment A- Resolution
Attachment B- Resolution 2021-044
Attachment C- Project Map
Attachment D- Loan Repayment Sheet

RESOLUTION NO. 2025-

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA MESA

AUTHORIZING THE REIMBURSEMENT OF PROJECT EXPENDITURES AND

APPROVING A RELATED CHANGE ORDER FOR THE INFLOW AND
INFILTRATION MITIGATION PROJECT, PHASE 6 (CAPITAL IMPROVEMENT PROJECT NO. 8103), IN THE AMOUNT OF $9,618,582
WHEREAS, this project will advance the City’s goal of investing in infrastructure to serve the needs of the community;
WHEREAS, the City’s wastewater capital improvement goals focus on replacement and/or rehabilitation of pipe with inadequate capacity, and/or in poor condition, and reduction of inflow and infiltration;
WHEREAS, the City has previously signed an agreement with the State Water Resources Control Board for financing of the project at an amount of $7,000,000; WHEREAS, the City of La Mesa desires to increase the funding amount to $9,618,582 in order to fund the project bid additives;
WHEREAS, the City of La Mesa intends to finance the planning, design, construction and construction management of the Project moneys (“Project Funds”) provided by the State of California, acting by and through the State Water Resources Control Board (State Water Board);
WHEREAS, the State Water Board may fund the Project Funds with proceeds from the sale of obligations the interest upon which is excluded from gross income for federal tax purposes (the “Obligations”);
WHEREAS, prior to either the issuance of the Obligations or the approval by the State Water Board of the Project Funds the Agency desires to incur certain capital expenses (the “Expenditures”) with respect to the Project from available monies of the Agency; and WHEREAS, the Agency has determined that those monies to be advances on and after the date hereof to pay the Expenditures are available only for a temporary period and it is necessary to reimburse the Agency for the Expenditures form the proceeds of the Obligations.

NOW, THEREFORE, BE IT AND IT IS HEREBY RESOLVED as follows:

SECTION 1: The City of La Mesa hereby states its intention and reasonably expects to reimburse Expenditures paid prior to the issuance of the Obligations or the approval by the State Water Board of the Project Funds.

SECTION 2: The reasonably expected maximum principal amount of the Project Funds is $9,618,582.

SECTION 3: The resolution is being adopted no later than 60 days after the date on which the Agency will expend moneys for the construction portion of the Project costs to be reimbursed with Project Funds.

SECTION 4: Each Agency expenditure will be of a type properly chargeable to a capital account under general income tax principles.

SECTION 5: To the best of our knowledge, this Agency is not aware of the previous adoption of official intents by the Agency that have been made as a matter of course for the purpose of reimbursing expenditures and for which tax-exempt obligations have not been issued.

SECTION 6: This resolution is adopted as official intent of the Agency to comply with Treasury Regulation §1.150-2 and any other regulations of the Internal Revenue Service relating to the qualification for reimbursement of Project costs.

SECTION 7: All the recitals in this Resolution are true and correct and this Agency so finds, determines and represents.

SECTION 8: The Mayor is authorized to approve on behalf of the City a contract Change Order with SC Valley Construction for the expanded scope of work contingent on agreement between the City and the Contractor as to cost and schedule.

PASSED AND ADOPTED at a Regular meeting of the City Council of the City of La Mesa, California, held the 12th day of November 2025, by the following vote, to wit:

AYES:

NOES:

ABSENT:

CERTIFICATE OF CITY CLERK
I, MEGAN WIEGELMAN, City Clerk of the City of La Mesa, California, do hereby certify the foregoing to be a true and exact copy of Resolution No. 2025- , duly passed and adopted by the City Council of said City on the date and by the vote therein recited.

MEGAN WEIGELMAN, CMC, City Clerk
(SEAL OF CITY)

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A B C D E F G H I
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City of La Mesa
State Revolving Fund Loans History and Status
No. Projects Total Pipe
Lengths
No. of
Manholes
Project Cost Date of
Completion
Annual Payment Loan Maturity
1 I&I Mitigation Project Phase 1 20,000 116 $4,040,000 March‐06 $304,569.07 March‐27 2 I&I Mitigation Project Phase 2 10,000 67 $2,521,000 September‐08 $189,473.17 September‐29 3 I&I Mitigation Project Phase 3 11,000 69 $2,314,000 October‐09 $178,076.21 October‐30 4 I&I Mitigation Project Phase 4 16,200 107 $2,862,000 November‐10 $184,991.19 November‐31 5 Alvarado Trunk Sewer Phase 2 2,400 20 $3,366,000 September‐17 $213,494.31 September‐28 6 Alvarado Trunk Sewer Phase 3 4,700 21 $5,295,986 June‐21 $297,930.00 June‐32 7 I&I Mitigation Project Phase 6 16,200 54 $9,618,582 Mid/Late 2026 $564,000.00 2046 PENDING

REPORT to the MAYOR and MEMBERS of the CITY COUNCIL
From the CITY MANAGER
DATE: November 12, 2025
SUBJECT: RESOLUTION AMENDING CHAPTER 12.64 OF THE LA

MESA MUNICIPAL CODE TO DESIGNATE THE

FOLLOWING STREET SEGMENTS AS SAFETY
CORRIDORS IN THE CITY OF LA MESA:

1. Violet Street from Pearson Street to Waite Drive (Vista La Mesa Academy)

2. Lowell Street from University Avenue to Normal Avenue (Helix Charter HS)

3. Orien Avenue from Normal to Helix’s south-west corner student parking lot driveway exit (Helix Charter HS)

4. Junior High Drive from Cinnabar Drive to Lowell Street/Orien Avenue (LM Arts Academy)

5. Parks Avenue from Sturgess Avenue to Normal Avenue (Dale Elem)

6. Olive Avenue from Sturgess Avenue to Normal Avenue (Dale Elem)

7. Tower Street from 70th Street to Terry Lane (Rolando Elem)

8. Maryland Avenue from Oakland Road to Guessman Avenue (Maryland Ave Elem)

9. Lemon Avenue from Glen Street to Jackson Drive (Lemon Ave Elem)

10.Glen Street from Lemon Avenue to Glenira Avenue (Lemon Ave Elem)

11.Milden Street from Water Street to Washington Street (Grossmont HS)

12.Gregory Street from Howell Drive to Henderson Drive (Northmont Elem)

13.Park Plaza Drive from Dallas Street (Parkway Middle)

14.El Paso Street from Jackson Drive to Lake Murray Boulevard (Murray Manor Elem)

15.Jackson Drive from Laird Street to the North City Limit (Murray Manor Elem) ISSUING DEPARTMENT: Public Works
SUMMARY:

Issues:

Should the City Council amend Chapter 12.64 of the Municipal Code to designate specified street segments as safety corridors in the City of La Mesa?

Report to Mayor and Councilmembers
Date: November 12, 2025
Page: 2 of 5
Recommendation:

Staff recommends that the City Council amend Chapter 12.64 of the Municipal Code to designate specified street segments as safety corridors in the City of La Mesa.

Fiscal Impact:

Funds are available for signage, striping, and outreach at approximately $5,000.

City’s Strategic Goals:
 Maintain a community where residents and visitors feel safe.

BACKGROUND:

The California State Legislature sets the regulations for California speed limits and the California Vehicle Code (CVC) places these regulations into language used primarily for enforcement purposes. Various jurisdictions have responsibility for roadways throughout California, including the responsibility to set speed limits on these roadways according to the standards and procedures established by Caltrans. The guidelines from the 2014 California Manual for setting speed limits published by Caltrans are used in this study.

These guidelines help in establishing speed limits that are uniform throughout the state and avoid influence from political pressure or emotional perceptions. CVC Section 40802 requires that an Engineering and Traffic Survey (E&TS) for speed limits should be conducted at least once every 5, 7, or 10 years based on established criteria. Under current state statute provisions, state and local agencies re-evaluate non-statutory speed limits on their street segments that have undergone a significant change in roadway characteristics or surrounding land uses since the speed limits were last reviewed. Speed limits are established primarily to protect the public from the behavior of reckless, unreliable, or dangerous drivers and at or near the 85th percentile speed. The 85th percentile speed, also referred to as “the critical speed,” is defined as the speed at or below which 85 percent of traffic is moving in free flow conditions. Speed limits established on this basis conform to the consensus of those who drive on the roadways as to what speed is reasonable and safe under normal driving conditions.

The California Legislature passed AB43 in September 2021, which grants Caltrans and local authorities greater flexibility in setting speed limits based on recommendations the Zero Traffic Fatality Task Force (Task Force) made in January 2020. The provisions of the bill allows Caltrans and local authorities to further reduce the speed limit by an additional five miles per hour for either of the following reasons:

Report to Mayor and Councilmembers
Date: November 12, 2025
Page: 3 of 5

1. The portion of a roadway has been designated as a safety corridor. A local authority shall not deem more than one-fifth of their streets as safety corridors, or

2. The portion of a roadway is adjacent to any land or facility that generates high concentrations of bicyclists or pedestrians, especially those from vulnerable groups such as children, seniors, persons with disabilities, and the unhoused.

DISCUSSION:

The following street segments were selected as safety corridors based on their proximity to public schools where additional reduction in the speed limit could better protect vulnerable road/pedestrian/bicyclist users such as children.

1. Violet Street from Pearson Street to Waite Drive (Vista La Mesa Academy)

2. Lowell Street from University Avenue to Normal Avenue (Helix Charter HS )

3. Orien Avenue from Normal to Helix’s south-west corner student parking lot driveway exit (Helix Charter HS)

4. Junior High Drive from Cinnabar Drive to Lowell Street/Orien Avenue (LM Arts Academy)

5. Parks Avenue from Sturgess Avenue to Normal Avenue (Dale Elem)

6. Olive Avenue from Sturgess Avenue to Normal Avenue (Dale Elem)

7. Tower Street from 70th Street to Terry Lane (Rolando Elem)

8. Maryland Avenue from Oakland Road to Guessman Avenue (Maryland Ave Elem)

9. Lemon Avenue from Glen Street to Jackson Drive (Lemon Ave Elem)

10.Glen Street from Lemon Avenue to Glenira Avenue (Lemon Ave Elem)

11.Milden Street from Water Street to Washington Street (Grossmont HS)

12.Gregory Street from Howell Drive to Henderson Drive (Northmont Elem)

13.Park Plaza Drive from Dallas Street (Parkway Middle)

14.El Paso Street from Jackson Drive to Lake Murray Boulevard (Murray Manor Elem)

15.Jackson Drive from Laird Street to the North City Limit (Murray Manor Elem) In addition, staff recommends making Municipal Code changes along Jackson Drive between Laird and the North City Limit, as this roadway section is already listed and will be removed from municipal code section 12.64.010 and be relocated to section 12.64.025 as follows:

A. Remove the following portions of streets from Section 12.64.010 of the La Mesa Municipal Code:

Jackson Drive from Laird Street to the north city Limits

Report to Mayor and Councilmembers
Date: November 12, 2025
Page: 4 of 5
Consequently, the above-mentioned streets are recommended to be added to Section12.64.025 – Decrease of state law maximum speed for a safety corridor - as follows:

Table 1

NAME OF STREET OR PORTION AFFECTED DECLARED PRIMA FACIE SPEED LIMIT
Violet Street from Pearson Street to Waite Drive 20
Lowell Street from University Avenue to Normal
Avenue 20
Orien Avenue from Normal to Helix south-west corner
student parking lot driveway exit 20
Junior High Drive from Cinnabar Drive to Lowell
Street/Orien Avenue 20
Parks Avenue from Sturgess Avenue to Normal
Avenue 20
Olive Avenue from Sturgess Avenue to Normal
Avenue 20
Tower Street from 70th Street to Terry Lane 20
Maryland Avenue from Oakland Road to Guessman
Avenue 20
Lemon Avenue from Glen Street to Jackson Drive 20
Glen Street from Lemon Avenue to Glenira Avenue 20
Milden Street from Water Street to Washington Street 20 Gregory Street from Howell Drive to Henderson Drive 20
Park Plaza Drive from Dallas Street 20
El Paso Street from Jackson Drive to Lake Murray
Boulevard 20
Jackson Drive from Laird Street to the North City Limit (Remove Jackson Drive segment from 12.64.010) 30
CONCLUSION:

Staff recommends the City Council amend Chapter 12.64 of the Municipal Code to designate the roadway segments listed in Table 1 of this report as Safety Corridors in the City of La Mesa.

Report to Mayor and Councilmembers
Date: November 12, 2025
Page: 5 of 5
Reviewed by: Respectfully submitted by:
____________________ ____________________________
Greg Humora Michael Throne, PE
City Manager Director of Public Works
Mike Kinnard
Engineering Project Manager
Attachments: A. Resolution
B. AB 43 Street Map Limits

RESOLUTION NO. 2025-

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA MESA
AMENDING CHAPTER 12.64 OF THE LA MESA MUNICIPAL CODE

DESIGNATING SPECIFIED STREET SEGMENTS AS SAFETY CORRIDORS

IN THE CITY OF LA MESA
NOW, THEREFORE, BE IT AND IT IS HEREBY RESOLVED by the City Council of the City of La Mesa, California, as follows:

Section 12.64.025 of the La Mesa Municipal Code is hereby amended to add the following:

Name of Street Declared PrIma Facie Speed Limit
Violet Street from Pearson Street to Waite Drive 20
Lowell Street from University Avenue to Normal Avenue 20 Orien Avenue from Normal to Helix south-west corner student parking lot driveway exit
20 Junior High Drive from Cinnabar Drive to Lowell Street/Orien Avenue
20 Parks Avenue from Sturgess Avenue to Normal Avenue 20 Olive Avenue from Sturgess Avenue to Normal Avenue 20
Tower Street from 70th Street to Terry Lane 20
Maryland Avenue from Oakland Road to Guessman Avenue 20 Lemon Avenue from Glen Street to Jackson Drive 20
Glen Street from Lemon Avenue to Glenira Avenue 20
Milden Street from Water Street to Washington Street 20 Gregory Street from Howell Drive to Henderson Drive 20
Park Plaza Drive from Dallas Street 20
El Paso Street from Jackson Drive to Lake Murray Boulevard 20 Jackson Drive from Laird Street to the North City Limit 30 Section 12.64.010 of the La Mesa Municipal Code is hereby amended to remove the following street segment:

Jackson Drive from Laird Street to the North City Limits PASSED AND ADOPTED at a Regular meeting of the City Council of the City of La Mesa, California, held the 12th day of November 2025, by the following vote, to wit:

AYES:

NOES:

ABSENT:

CERTIFICATE OF CITY CLERK
I, MEGAN WIEGELMAN, City Clerk of the City of La Mesa, California, do hereby certify the foregoing to be a true and exact copy of Resolution No. 2025- , duly passed and adopted by the City Council of said City on the date and by the vote therein recited.

MEGAN WIEGELMAN, CMC, City Clerk
(SEAL OF CITY)

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REPORT to the MAYOR and MEMBERS of the CITY COUNCIL
From the CITY MANAGER
DATE: November 12, 2025
SUBJECT: RESOLUTION AUTHORIZING A SERVICE
AGREEMENT WITH OPENGOV, INC. FOR

CARTEGRAPH ENTERPRISE ASSET MANAGEMENT

SOFTWARE
ISSUING DEPARTMENT: Public Works
SUMMARY:

Issues:

Should the City Council adopt a resolution authorizing a 36-month purchase agreement with OpenGov, Inc. for $347,165.90 for Cartegraph Enterprise Asset Management Software?
Recommendation:

Staff recommends that the City Council approve a resolution authorizing a threeyear purchase agreement with OpenGov, Inc. for $347,165.90 for Cartegraph Enterprise Asset Management Software.

Fiscal Impact:

Funds are budgeted and available in Public Works operating accounts 3101-6486 and 4142-6486.

City’s Strategic Goals:
 Invest in infrastructure to serve the needs of the community.

BACKGROUND:

Enterprise Asset Management software (EAM) allows the user to log in customer requests, issue work orders, track work and resources, schedule tasks, manage

Report to Mayor and Councilmembers
Date: November 12, 2025
Page: 2 of 3
infrastructure assets, compile data to assist with enhancement of public works services, and streamline the operational budgets. EAM is a means of modernization of public works service and work. EAM is being used by many jurisdictions throughout the country and becoming a standard tool in the public works field.

In 2003, the City chose to purchase Cartegraph Navigator for its operations and maintenance needs after extensive evaluation of available software at the time. In 2015, the City upgraded Cartegraph Navigator to Cartegraph OMS, which is asset-based software with mobile capabilities. This version of the software allows maintenance crews to receive requests, create tasks and log the work performed and resources used in the field with use of tablet computers.

The Public Works Department has implemented Cartegraph for several divisions and is continuing to expand the software’s services and capabilities to other divisions. Currently, external and internal requests are logged in Cartegraph for wastewater, streets, traffic, parks, and storm water divisions.

In 2017 Cartegraph added the See-Click-Fix mobile app. The City receives maintenance and other requests through this app and can seamlessly incorporate the work orders into Cartegraph. See-Click-Fix also allows the City to communicate with requesters of the work.

Cartegraph is now part of OpenGov, Inc., following its acquisition by OpenGov, Inc. in July 2022. Cartegraph's asset and operations management software is now integrated into the OpenGov Cloud.

DISCUSSION:

OpenGov, Inc., like many other software solutions, is on a subscription basis. OpenGov, Inc., has provided the City a 36-month purchase agreement starting in December 2025.

This agreement entails a price structure to the City of La Mesa without any budgetary commitments for second and third years. The City Council has already approved the current fiscal year’s budget, which includes sufficient funds to cover the first year of the agreement. The initial year's cost amounts to $110,124.00. The fees for the second and third years are $115,630.19 and $121,411.71, respectively.

The City’s Purchasing Officer may waive competitive bidding if the commodity being purchased is required to match or be compatible with equipment presently on hand, and the purchase is made from the supplier that supplied such other equipment, per La Mesa Municipal Code Section 2.40.070(a)(3). Purchasing OpenGov software will keep our EAM software consistent for both staff and the public. The facts are that OpenGov EAM can provide continued use of the same system and, as such, staff recommends that it is in the best interests of the City to enter into a 36-month purchase agreement with OpenGov,

Report to Mayor and Councilmembers
Date: November 12, 2025
Page: 3 of 3
Inc. for $347,165.90 without a formal bidding process.

CONCLUSION:

Staff recommends that the Council waive competitive bidding for the continued use of OpenGov EAM software and authorize a purchase agreement with OpenGov, Inc., for $347,165.90 for Cartegraph Enterprise Asset Management Software. .

Reviewed by: Respectfully submitted by:
____________________ ____________________________
Greg Humora Michael Throne, PE
City Manager Director of Public Works
____________________________
Carly Cubberley
Engineering Project Manager
Attachments: A. Resolution
B. Purchase Agreement

RESOLUTION NO. 2025-

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA MESA
AUTHORIZING A PURCHASE AGREEMENT WITH OPENGOV, INC. FOR

CARTEGRAPH ENTERPRISE ASSET MANAGEMENT SOFTWARE
________________________________________________________________ WHEREAS, the City’s has a strategic goal to invest in infrastructure to serve the needs of the community;
WHEREAS, the City’s Purchasing Officer may waive competitive bidding if the commodity being purchased is required to match or be compatible with equipment presently on hand, and the purchase is made from the supplier that supplied such other equipment, per La Mesa Municipal Code Section 2.40.070(a)(3);
WHEREAS, purchasing Cartegraph software (now part of OpenGov, Inc.) will maintain the continuity of the City’s current operation and maintenance software for both staff and the public; WHEREAS, OpenGov, Inc. has proposed a 36-month purchase agreement with fixed pricing structure of $110,124.00 for the first year and $115,630.19 and $121,411.71 for the second and third year, respectively;
WHEREAS, the purchase of the software for the current fiscal year is part of the approved budget; and
WHEREAS, the City is under no obligation to purchase the software for the second and third years should the City Council decide not to approve the budget for this purchase.

NOW, THEREFORE, BE IT AND IT IS HEREBY RESOLVED by the City Council of the City of La Mesa, pursuant to Municipal Code Section 2.40.070 paragraph (a)(3) that the City waives competitive bidding for the purchase of OpenGov Cartegraph Enterprise Asset Management software.

BE IT FURTHER RESOLVED that the Mayor is hereby authorized to execute the Purchase Agreement with OpenGov, Inc., in substantial form as presented, subject to final review and approval by the City Attorney.

PASSED AND ADOPTED at a Regular meeting of the City Council of the City of La Mesa, California, held the 12th day of November 2025, by the following vote, to wit:

AYES:

NOES:

ABSENT:

CERTIFICATE OF CITY CLERK
I, MEGAN WIEGELMAN, City Clerk of the City of La Mesa, California, do hereby certify the foregoing to be a true and exact copy of Resolution No. 2025- , duly passed and adopted by the City Council of said City on date and by the vote therein recited.

MEGAN WIEGELMAN, CMC, City Clerk
(SEAL OF CITY)

OpenGov Inc.
660 3rd Street, Suite 100
San Francisco, CA 94107
United States
Order Form Number: Q-10328 Prepared By: Allen Rosenbaum Created On: 08/08/2025 Email: [email protected]
Order Form Expiration: 11/30/2025 Contract Term: 36 Months Subscription Start Date: 12/01/2025
Subscription End Date: 11/30/2028
Customer Information:

Customer: City of La Mesa, CA Contact Name: Lindsey Hurley Bill To/Ship To: 8130 Allison Ave Email: [email protected] La Mesa, California Phone: (619)667-1480
91942
United States
Order Details:

Billing Frequency: Prepaid
Payment Terms: Net 30 Days
SOFTWARE SERVICES:

Product Name Start Date End Date Annual Fee
811 Integration 12/01/2025 11/30/2026 $5,570.25
Asset Builder (option) 12/01/2025 11/30/2026 $1,270.50
Facilities Domain 12/01/2025 11/30/2026 $0.00
Integration Toolkit (option) 12/01/2025 11/30/2026 $1,911.00 OMS Plus 12/01/2025 11/30/2026 $54,369.00
OMS User 12/01/2025 11/30/2026 $26,733.00
Parks & Recreation Domain 12/01/2025 11/30/2026 $0.00

Sanitary Sewer Domain 12/01/2025 11/30/2026 $0.00
SCF City 40,000 - 59,999 (includes 40 SCF users) 12/01/2025 11/30/2026 $20,270.25 Signal Domain 12/01/2025 11/30/2026 $0.00
Stormwater Domain 12/01/2025 11/30/2026 $0.00
Transportation Domain 12/01/2025 11/30/2026 $0.00
Walkability Domain 12/01/2025 11/30/2026 $0.00
Water Distribution Domain 12/01/2025 11/30/2026 $0.00
811 Integration 12/01/2026 11/30/2027 $5,848.76
Asset Builder (option) 12/01/2026 11/30/2027 $1,334.02
Facilities Domain 12/01/2026 11/30/2027 $0.00
Integration Toolkit (option) 12/01/2026 11/30/2027 $2,006.55 OMS Plus 12/01/2026 11/30/2027 $57,087.45
OMS User 12/01/2026 11/30/2027 $28,069.65
Parks & Recreation Domain 12/01/2026 11/30/2027 $0.00
Sanitary Sewer Domain 12/01/2026 11/30/2027 $0.00
SCF City 40,000 - 59,999 (includes 40 SCF users) 12/01/2026 11/30/2027 $21,283.76 Signal Domain 12/01/2026 11/30/2027 $0.00
Stormwater Domain 12/01/2026 11/30/2027 $0.00
Transportation Domain 12/01/2026 11/30/2027 $0.00

Walkability Domain 12/01/2026 11/30/2027 $0.00
Water Distribution Domain 12/01/2026 11/30/2027 $0.00
811 Integration 12/01/2027 11/30/2028 $6,141.20
Asset Builder (option) 12/01/2027 11/30/2028 $1,400.73
Facilities Domain 12/01/2027 11/30/2028 $0.00
Integration Toolkit (option) 12/01/2027 11/30/2028 $2,106.88 OMS Plus 12/01/2027 11/30/2028 $59,941.82
OMS User 12/01/2027 11/30/2028 $29,473.13
Parks & Recreation Domain 12/01/2027 11/30/2028 $0.00
Sanitary Sewer Domain 12/01/2027 11/30/2028 $0.00
SCF City 40,000 - 59,999 (includes 40 SCF users) 12/01/2027 11/30/2028 $22,347.95 Signal Domain 12/01/2027 11/30/2028 $0.00
Stormwater Domain 12/01/2027 11/30/2028 $0.00
Transportation Domain 12/01/2027 11/30/2028 $0.00
Walkability Domain 12/01/2027 11/30/2028 $0.00
Water Distribution Domain 12/01/2027 11/30/2028 $0.00
Customer Billing/Service Periods:

Period: Total:
12/01/2025 $110,124.00
12/01/2026 $115,630.19
12/01/2027 $121,411.71

Order Form Legal Terms:

This Order Form incorporates the OpenGov Master Services Agreement ("MSA") attached here or available at https://opengov.com/terms-of-service/master-services-agreement/.

The "Agreement" between OpenGov and the entity identified above ("Customer") consists of the Order Form, MSA, and, if Professional Services are purchased, the Statement of Work.

Unless otherwise specified above, fees for the Software Services and Professional Services shall be due and payable, in advance, 30 days from receipt of the invoice.

By signing this Agreement, Customer acknowledges that it has reviewed, and agrees to be legally bound by the Agreement. Each party’s acceptance of this Agreement is conditional upon the other’s acceptance of the Agreement to the exclusion of all other terms
City of La Mesa, CA: OpenGov, Inc.

Signature:
____________________________
Signature:
____________________________
Name:
____________________________
Name:
____________________________
Title:
____________________________
Title:
____________________________
Date:
____________________________
Date:
____________________________

REPORT to the MAYOR and MEMBERS of the CITY COUNCIL
From the CITY MANAGER
DATE: November 12, 2025
SUBJECT: APPROVAL OF A RESOLUTION AMENDING SECTION

12.44.130 OF THE LA MESA MUNICIPAL CODE

INSTALLING A DISABLED PERSONS PARKING SPACE
AT 4162 CHARLES STREET
ISSUING DEPARTMENT: Public Works
SUMMARY:

Issue:

Should the City Council adopt a resolution amending Section 12.44.130 of the La Mesa Municipal Code installing a disabled persons parking space at 4162 Charles Street?
Recommendation:

Staff recommends the City Council approve a resolution amending Section

12.44.130 of the La Mesa Municipal Code, installing a disabled persons parking space at 4162 Charles Street.

Fiscal Impact:

The cost to install the space should be less than $1,000 and can be covered by the Public Works Traffic Operations maintenance budget (3107-6420).

BACKGROUND:

Requests for an on-street disabled persons parking space require possession of a valid disabled person placard, available on-street space, and no or limited available access from the private property. The homeowner must provide a valid disabled placard issued by the State of California, have available on-street parking, and have limited accessible access to their property.

Report to Mayor and Councilmembers
Date: November 12, 2025
Page: 2 of 2
DISCUSSION:

The request for an on-street disabled persons parking space at 4162 Charles Street is from a homeowner who does not have access to a driveway and uses the stairs fronting his home to access his property. Due to his disability, he finds it difficult to walk distances, traverse stairs, and needs close, manageable access to his residence. At the November 5th Mobility Commission meeting, the commission voted to support the staff recommendation for the approval of the installation of a blue curb at 4162 Charles Street.

CONCLUSION:

Staff recommends that the City Council approve a resolution amending Section

12.44.130 of the La Mesa Municipal Code installing a disabled persons parking space at 4162 Charles Street.

Reviewed by: Respectfully submitted by:
____________________ ____________________________
Greg Humora Michael Throne, PE
City Manager Director of Public Works
______________________
Brianda De La Torre
Assistant Engineer
Attachments: A. Resolution
B. Frontage Picture of Residence

ATTACHMENT A
RESOLUTION NO. 2025-

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA MESA
AMENDING SECTION 12.44.130 OF THE LA MESA MUNICIPAL CODE INSTALLING A DISABLED PERSONS PARKING SPACE AT 4162 CHARLES STREET
NOW, THEREFORE, BE IT AND IT IS HEREBY RESOLVED by the City Council of the City of La Mesa, California, as follows:

Section 12.44.130 of the La Mesa Municipal Code is hereby amended to add the following:

Street Side of Street Location Description or Address
Charles Street West One parking space located at 4162 Charles Street PASSED AND ADOPTED at a Regular meeting of the City Council of the City of La Mesa, California, held the 12th day of November 2025, by the following vote, to wit:

AYES:

NOES:

ABSENT:

CERTIFICATE OF CITY CLERK
I, MEGAN WIEGELMAN, City Clerk of the City of La Mesa, California, do hereby certify the foregoing to be a true and exact copy of Resolution No. 2025- , duly passed and adopted by the City Council of said City on the date and by the vote therein recited.

MEGAN WIEGELMAN, CMC, City Clerk
(SEAL OF CITY)

Attachment B

DATE: November 12, 2025
TO: Mayor and Members of the City Council
FROM: John Herrera, CPA, Acting Finance Director
VIA: Greg Humora, City Manager
SUBJECT: ACCEPTANCE OF BASIC FINANCIAL STATEMENTS AND
INDEPENDENT AUDITOR’S REPORT FOR THE CITY OF LA MESA
FOR THE YEAR ENDING JUNE 30, 2024
The City’s independent audit for the fiscal year (FY) ended June 30, 2024, has been completed.

The City of La Mesa received an “unmodified audit opinion” from its independent auditing firm of Rogers, Anderson, Malody & Scott, CPAs. The Report on the Audit of the Financial Statements for FY 2024 is attached to this memo.

Upon acceptance and approval by the City Council, staff will publish these audited FY 2024 financial statements, to comply with bond rating agencies, and other continuing disclosure requirements.

City of La Mesa
La Mesa, California
Basic Financial Statements and
Independent Auditor’s Report
For the Year Ended June 30, 2024

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CITY OF LA MESA
Basic Financial Statements
For the Year Ended June 30, 2024
Table of Contents
Page
Independent Auditor's Report 1
Management's Discussion and Analysis 4
Basic Financial Statements
Government-Wide Financial Statements:

Statement of Net Position 13
Statement of Activities 14
Fund Financial Statements:

Governmental Fund Financial Statements:

Balance Sheet 16
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position 17
Statement of Revenues, Expenditures, and Changes in Fund Balances 18 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities 19
Proprietary Fund Financial Statements:

Statement of Net Position 20
Statement of Revenues, Expenses, and Changes in Fund Net Position 21 Statement of Cash Flows 22
Fiduciary Fund Financial Statements:

Statement of Fiduciary Net Position 23
Statement of Changes in Fiduciary Net Position 24
Index to Notes to the Basic Financial Statements 25
Notes to the Basic Financial Statements 27
Required Supplementary Information
Budgetary Information 82
Budgetary Comparison Schedule – General Fund 83
Budgetary Comparison Schedule – Miscellaneous Grants Fund 84 Schedules of Changes in Net Pension Liability and Related Ratios 85 Schedule of Plan Contributions 88
Schedule of Changes in Net OPEB Liability and Related Ratios 91 Schedule of OPEB Contributions 93

CITY OF LA MESA
Basic Financial Statements
For the Year Ended June 30, 2024
Table of Contents
Page
Supplementary Information
Non-Major Governmental Funds:

Combining Balance Sheet 94
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances 100
Internal Service Funds:

Combining Statement of Net Position 106
Combining Statement of Revenues, Expenses, and Changes in Net Position 107 Combining Statement of Cash Flows 108

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 City Council
City of La Mesa, 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 City of La Mesa, as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2024, and the respective changes in financial position, and, where applicable, cash flows thereof for the 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, 2024, the City adopted new accounting guidance under Governmental Accounting Standards Board (GASB) Statement No. 100, Accounting Changes and Error Corrections. Our opinions are not modified with respect to this matter.

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.

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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 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.

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison information and schedules, 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

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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’s basic financial statements. The combining and individual nonmajor fund financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and 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 Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated October 22, 2025 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

San Bernardino, California
October 22, 2025

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CITY OF LA MESA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Fiscal Year Ended June 30, 2024
‐4-
As management of the City of La Mesa (City), we offer readers of these financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2024. We encourage readers to consider the information presented here in conjunction with the Basic Financial Statements and attached notes. The reader should consider the prior period adjustments that will modify the amounts and percentages highlighted in the narrative below.

Financial Highlights
 The total assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources (net position) by $179.9 million at the close of fiscal year 2023- 2024. Due to the implementation of GASB 68 and 75 and the additions of the City’s long-term net pension liability and Other Post-Employment Benefits (OPEB) liability onto the statement of net position, the City reported a negative unrestricted net position of $35.9 million.  The City’s total net position increased $4.2 million from the prior fiscal year, prior to accounting for prior period adjustment.
 At the close of the current fiscal year, the City’s governmental funds reported combined fund balances of $91.8 million, an increase of just over $2.5 million from the prior year, excluding the prior period adjustment consideration. Approximately 52.9% of this amount or $48.6 million is available for spending at the government's discretion (unassigned fund balance).  At the end of the current fiscal year, the General Fund unrestricted fund balance (the total of the committed, assigned, and unassigned components of fund balance) was $51.4 million, or approximately 80.0% of actual general fund expenditures.  The City’s total capital assets (net of depreciation) increased by $0.2 million, for a total of $204.5 million, and total outstanding long-term debt decreased by $3.3 million during the current fiscal year, for net of $35.4 million.

Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements include three components: 1) government-wide financial statements, 2) governmental fund financial statements, and 3) notes to the financial statements.

This report also contains other supplementary information in addition to the basic financial statements themselves.

Government-wide financial statements. The Government-wide Financial Statements report information about the City as a whole, using accounting methods similar to those used by private-sector companies. The Statement of Net Position includes all of the City’s assets and liabilities. All of the current year’s revenues and expenses are accounted for in the Statement of Activities, regardless of when cash is received or paid.

The two Government-wide Financial Statements report the City’s net position and how it has changed.

Net position – the difference between the City’s assets and liabilities – is one way to measure the City’s financial health, or position. Over time, increases or decreases in the City’s net position are an indicator of whether the City’s financial health is improving or deteriorating.

CITY OF LA MESA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Fiscal Year Ended June 30, 2024
‐5-
The Government-wide Financial Statements of the City are divided into two categories:
• Governmental activities – Most of the City’s basic services, such as police, fire, public works, community development, community services, and internal services are included here. Taxes, revenues from other governments and agencies, income from property and investments, grants and contributions, and charges for services finance most of these activities. • Business-type activities – The City charges fees to customers to cover the cost of certain services it provides. The City’s wastewater operations is the business-type activity.

The government-wide financial statements include the City (known as the primary government) and the La Mesa Public Financing Authority, a separate legal entity for which the City is financially accountable.

The Public Financing Authority, although legally separate, functions for all practical purposes as a department of the City, and therefore has been included as an integral part of the primary government.

Fund financial statements. The Fund Financial Statements provide more detailed information about the City’s most significant funds – not the City as a whole. Funds are accounting devices used by the City to keep track of specific sources of funding and spending for particular purposes.

Governmental funds. Most of the City’s basic services are included in governmental funds. These funds are used to account for (1) cash and other financial assets that can readily be converted to cash, and (2) balances left at year-end that are available for future spending. Consequently, the Governmental Funds Statements provide a detailed short-term view that helps the reader determine the amount of financial resources that can be spent in the near future to finance the City’s programs. The statements are presented on a modified accrual basis of accounting. Reconciliation between the long-term and shortterm focus of the Government-wide Financial Statements is provided following each statement.

Proprietary funds.

Services for which the City charges customers a fee are generally reported in proprietary funds.

Proprietary funds, like Government-wide Financial Statements, provide both long- and short-term financial information, and are presented on an accrual basis of accounting.

There are two types of propriety funds, enterprise funds and internal service funds:

Enterprise funds are used to report activities that provide business-type services, generally to external customers. City’s wastewater operations fall under these criteria. In both the Government-wide Financial Statements and the Fund Financial Statements, these funds are shown under business-type activities.  Internal service funds are used to report activities that provide services and supplies for the City’s other programs and activities, such as Employee Benefits, Workers’ Compensation Insurance, Equipment Replacement, and Liability Risk Insurance. Because these services predominantly benefit governmental rather than business-type functions, they have been included with governmental activities in the government-wide financial statements.

Fiduciary funds. Included in fiduciary funds are private purpose trust funds. The private purpose trust funds were established in the wake of the dissolution of redevelopment. The private purpose trust funds account for the City of La Mesa Successor Agency and the La Mesa Redevelopment Obligation Retirement Fund.

CITY OF LA MESA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Fiscal Year Ended June 30, 2024
‐6-
Due to implementation of GASB 84 in the current fiscal year, all funds previously reported as agency funds are now reported as part of the General Fund.

Notes to the 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 and can be found in the Notes to the Basic Financial Statements section.

Other information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning financial and budgetary information for the general fund and the City’s progress in funding its obligation to provide pension and OPEB benefits to its employees. Included in the required supplementary information is information related to the City’s implementation of GASB Pronouncements 68 and 75 and related schedules of changes in net pension liability net OPEB liability. All required supplementary information is found in the RSI section of this report.

Combining and individual fund statements and schedules for non-major governmental, internal service, and fiduciary funds are found in the supplementary information section of this report.

Government-wide Overall Financial Analysis
2024 2023 2024 2023 2024 2023
ASSETS
Current and other assets 149,728,745 $ 145,606,902 $ 5,234,655 $ 5,551,873 $ 154,963,400 $ 151,158,775 $ Capital assets 167,536,840 166,084,323 36,960,293 38,233,302 204,497,133 204,317,625 Total assets 317,265,585 311,691,225 42,194,948 43,785,175 359,460,533 355,476,400

DEFERRED OUTFLOWS OF RESOURCES
Pension related 34,239,314 31,927,928 1,328,456 1,409,432 35,567,770 33,337,360 OPEB related 2,384,206 2,409,670 322,966 326,415 2,707,172 2,736,085 Loss on refunding 365,599 396,065 - - 365,599 396,065
Total deferred outflows of resources 36,989,119 34,733,663 1,651,422 1,735,847 38,640,541 36,469,510

LIABILITIES
Net pension liability 119,829,877 109,412,927 5,165,063 4,950,604 124,994,940 114,363,531 Net OPEB liability 666,024 1,475,821 90,220 199,915 756,244 1,675,736 Other long-term liabilities outstanding 25,762,794 26,087,430 11,434,529 11,434,234 37,197,323 37,521,664 Other current liabilities 24,973,619 24,014,126 255,315 1,526,416 25,228,934 25,540,542 Total liabilities 171,232,314 160,990,304 16,945,127 18,111,169 188,177,441 179,101,473

DEFERRED INFLOWS OF RESOURCES
Pension related 1,448,765 2,663,881 22,370 78,295 1,471,135 2,742,176 OPEB related 1,228,886 977,883 166,465 132,465 1,395,351 1,110,348 Unearned revenue 342,017 707,437 - - 342,017 707,437
Leases 26,780,790 27,747,273 - - 26,780,790 27,747,273
Total deferred inflows of resources 29,800,458 32,096,474 188,835 210,760 29,989,293 32,307,234

NET POSITION
Net investment in capital assets 148,223,792 144,716,039 25,577,084 25,518,104 173,800,876 170,234,143 Restricted 41,579,121 38,088,598 494,797 494,797 42,073,918 38,583,395 Unrestricted (36,580,981) (29,466,527) 640,527 1,186,192 (35,940,454) (28,280,335) Total net position 153,221,932 $ 153,338,110 $ 26,712,408 $ 27,199,093 $ 179,934,340 $ 180,537,203 $ Condensed Statement of Net Position
As of June 30,
Governmental Activities Business-Type Activities Total
Analyzing total net position over time may serve as a useful indicator of a government’s financial position. Increases or decreases in total net position indicate whether the financial position of the government is improving or deteriorating. As of June 30, 2024, the City’s total assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $179.6 million.

CITY OF LA MESA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Fiscal Year Ended June 30, 2024
‐7-
The largest portion of the City’s total citywide net position, $174.3 million and an increase of $4.1 million over prior year, reflects its investment in capital assets (e.g., land, buildings, machinery, equipment, vehicles, and infrastructure), 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’s investment in capital assets is reported net of related debt, it should be noted that the resources used to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.

An additional portion of the City’s net position, $41.7 million and an increase of $3.1 million over the previous year, represents resources that are subject to external restrictions on how they may be used.

The increase is primarily due to an increase in cash balances of $5.3 million, which was due in part to growth in governmental revenues across all funds, and $0.1 million in net changes in deferred outflows (inflows) of resources, and other governmental liabilities.

As it has been since fiscal year 2015 and the implementation of GASB 68 and subsequent addition of ongoing long-term pension related liabilities, deferred outflows, and deferred inflows to the Statement of Net Position, the City’s unrestricted net position is again negative, declining by $8.2 million to negative $36.5 million for governmental funds. The City’s negative unrestricted net position does not indicate that the City is unable to meet its current ongoing obligations; rather the net position presents a long-term view and highlights the importance of managing the future pension obligations.

The biggest impact to the citywide net position continues to be related to the implementation of GASB 68, and net pension liability.

Deferred outflows and inflows represent flows of resources into and out of a government that are related to future periods. In the case of deferred outflows and inflows of pension and OPEB-related resources, amounts arising from a single pension or OPEB-related source, that is, from differences between expected and actual experience with regard to economic or demographic factors, changes of assumptions, or differences between projected and actual earnings on pension plan investments, in different periods are reported as either deferred outflows or deferred inflows. Deferred outflows increase a City’s net position while they are being deferred and, conversely, deferred inflows decrease a City’s net position while they are being deferred.

Additional information related to pensions and OPEB can be found in Notes 11, 14 and 15.

CITY OF LA MESA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Fiscal Year Ended June 30, 2024
‐8-
2024 2023 2024 2023 2024 2023

REVENUES
Program revenues:

Charges for services 9,427,195 $ 10,009,014 $ 13,425,593 $ 13,675,770 $ 22,852,788 $ 23,684,784 $ Operating grants and contributions 10,040,773 6,512,927 31,170 1,117,265 10,071,943 7,630,192 Capital grants and contributions 1,394,065 4,010,452 - - 1,394,065 4,010,452 General revenues:

Property taxes 21,773,572 20,605,575 - - 21,773,572 20,605,575 Sales taxes 30,767,274 31,037,133 - - 30,767,274 31,037,133 Other taxes 7,345,802 7,038,974 - - 7,345,802 7,038,974 Investment earnings 3,959,800 1,903,405 482,727 (333,262) 4,442,527 1,570,143 Other 559,557 524,987 - - 559,557 524,987
Transfers 2,325,792 2,325,800 (2,325,792) (2,325,800) - - Total revenues 87,593,830 83,968,267 11,613,698 12,133,973 99,207,528 96,102,240

EXPENSES
General government 11,141,071 9,593,588 - - 11,141,071 9,593,588 Police 29,587,205 26,294,528 - - 29,587,205 26,294,528
Fire 18,835,881 15,626,401 - - 18,835,881 15,626,401
Public works 15,845,956 14,651,146 - - 15,845,956 14,651,146 Community services 3,277,035 2,918,676 - - 3,277,035 2,918,676 Community development 3,477,726 3,357,093 - - 3,477,726 3,357,093 Interest on long-term debt 728,880 773,296 - - 728,880 773,296 Wastewater - - 12,130,811 11,470,004 12,130,811 11,470,004 Total expenses 82,893,754 73,214,728 12,130,811 11,470,004 95,024,565 84,684,732 Change in net position 4,700,076 10,753,539 (517,113) 663,969 4,182,963 11,417,508 Net position, as previously stated 153,338,110 143,082,696 27,199,093 26,164,189 180,537,203 169,246,885 Prior period adjustment (4,816,254) (498,125) 30,428 370,935 (4,785,826) (127,190) Net position, beginning, as restated 148,521,856 142,584,571 27,229,521 26,535,124 175,751,377 169,119,695 Net position, ending 153,221,932 $ 153,338,110 $ 26,712,408 $ 27,199,093 $ 179,934,340 $ 180,537,203 $ For the Year Ended June 30,
Governmental Activities Business-Type Activities Total
Condensed Statement of Activities
The change in net position was $4.2 million in the current year, while ending net position from all activities decreased by $1.0 million when compared to last fiscal year.

Governmental activities. Most of the City’s basic services are included here. These services are funded primarily by taxes, revenues from other governments and agencies, income from property and investments, grants and contributions, and in some instances also by charges for services.  Total governmental revenues exceeded expenses by approximately $4.7 million. When compared to the previous year, total revenues were $3.1 million, or 4 percent higher.  Sales taxes decreased $0.3 million, operating grants and contributions increased by $3.5 million, other taxes increased by $0.3 million and property tax increased by $1.2 million.  When compared to the previous year, total expenses were $9.6 million or 13 percent higher.

Community Development expenses increased $0.1 million, Public Works increased $1.2 million, and general government increased $1.5 million.
 Citywide governmental expenses are reported on an accrual basis and include items such as depreciation, long-term debt, interest payable, and true pension expense that are not reported in the fund financial statements.

CITY OF LA MESA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Fiscal Year Ended June 30, 2024
‐9-
Business-type activities. The City charges fees to customers to cover the cost of certain services it provides. The business type activities for the City include Wastewater which provides engineering, construction, administration, and maintenance of the City’s wastewater system.  Wastewater revenues decreased by $0.3 million or 1.8 percent when compared to 2023. Charges for services decreased by $0.2 million and investment earnings increased by $0.8 million.  Wastewater expenses increased over the prior year by $0.7 million or 6.1 percent mainly due to the increases in professional services, and maintenance.

Financial Analysis of the City’s Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with financerelated legal requirements.

Governmental Funds. The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s short-term outlook. 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.

At June 30, 2024, the City’s governmental funds reported combined fund balances of $91.8 million, an increase of $2.5 million from the prior year operations. Approximately 52.9 percent of this amount or $48.6 million constitutes unassigned fund balance, which is available for spending at the government's discretion. The remainder of the fund balance is either not in spendable form ($5.1 million) or legally restricted for specific purposes ($37.8 million).

General Fund
The General Fund is the chief operating fund of the City. At the end of the current fiscal year, the total fund balance was $68.6 million, of which $51.4 million is considered unassigned fund balance and therefore available for discretionary use.

The remaining fund balance is made up of non-spendable fund balances of $5.1 million and restricted fund balances of $12.1 million.

Restricted fund balances are those resources that are subject to externally enforceable legal restrictions such as creditors, grantors, contributors and other governmental agencies. Restrictions also can arise when the authorization to raise revenues is conditioned upon the revenue being used for a particular purpose, pursuant to enabling legislation. At June 30, 2024, $8.6 million is restricted for the Section 115 Pension Trust Account and $3.4 million is restricted for encumbrances that remained outstanding at the end of the fiscal year.

Non-spendable fund balances are those assets that will never convert to cash (e.g., prepaid items and inventories of supplies), assets that will not convert to cash soon enough to affect the current period (e.g., the long-term portion of loans receivable), and resources that must be maintained intact pursuant to legal or contractual requirements. At June 30, 2024, the General Fund reported $4.7 million in advances to other funds comprising of the remaining balance owed by the former Redevelopment Agency for the old police station site. Other non-spendable items were $373,652 in inventories, and $2,572 for prepaid expenditures.

CITY OF LA MESA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Fiscal Year Ended June 30, 2024
‐10-
General Fund Budgetary Highlights
The final General Fund revenue budget for 2023-2024 totaled $67.7 million. The actual revenues were $69.3 million. Actual revenue plus transfers totaled $72.0 million for fiscal 2024, $1.2 million over budgeted amounts.

Almost all categories of General Fund revenues were received either at or above budgetary levels.

Property taxes were received above the target at $19.6 million. Sales tax and Prop L sales tax came in at a combined total of $30.3 million, $0.8 million over budget. Other taxes contributed $6.9 million, which came in right at budget, with cannabis business tax accounting for the majority of the increase. Charges for other services was the only revenue category ending below budget.

The final General Fund expenditure budget for 2023-2024, including prior year carry forward encumbrances, was $76.8 million. Actual expenditures and transfers were $68.6 million, under budgeted appropriations by $8.2 million.

All categories of General Fund expenditures were below budget. General Government, Public Safety, Public Works and Community Development, and Community Services, were below budget by $4.3 million, $2.0 million, $2.6 million, $1.4 million, and $0.3 million, respectively. The City’s budget has historically been conservatively estimated, and actual revenues have exceeded budget forecasts, which resulted in General Fund departments under budget, and fund balances above estimates.

Capital Asset and Debt Administration
Capital assets. The City’s total investment in capital assets includes land, buildings, improvements, equipment, infrastructure, and construction in progress. This investment for its governmental and business type activities, net of accumulated depreciation, totaled $204.5 million at June 30, 2024, an increase of $0.2 million, materially unchanged from 2023. There were significant prior period adjustments made in 2024, which affected the net change presented here. 2024 2023 2024 2023 2024 2023
Land and right-of-way 27,304,163 $ 27,304,163 $ - $ - $ 27,304,163 $ 27,304,163 $ Construction in progress 7,703,999 7,789,883 - 2,551,680 7,703,999 10,341,563 Buildings and improvements 32,915,012 29,058,403 - - 32,915,012 29,058,403 Vehicles and equipment 8,727,747 8,608,758 875,191 857,871 9,602,938 9,466,629 Infrastructure 89,873,994 91,761,192 36,014,768 34,656,013 125,888,762 126,417,205 Right-to-use assets 1,011,925 1,561,924 70,334 167,737 1,082,259 1,729,661 Total 167,536,840 $ 166,084,323 $ 36,960,293 $ 38,233,301 $ 204,497,133 $ 204,317,624 $ Capital Assets
As of June 30,
Governmental Activities Business-Type Activities Total
Additional information on the City’s capital assets can be found in Note 6 in the Notes to Basic Financial Statements section of this report.

Long-term debt. At June 30, 2024, the City had long-term debt totaling $35.4 million, a decrease of $3.4 million. Of the total long-term indebtedness, $16.8 million is general obligation refunding bond debt, $1.3 million is Certificates of Participation, $4.6 million is for vested leave time due City employees, and $11.4 million is a State Water Resources Control Board revolving fund loan.

CITY OF LA MESA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Fiscal Year Ended June 30, 2024
‐11-
2024 2023 2024 2023 2024 2023
Compensated absences 4,618,672 $ 4,653,062 $ - $ - $ 4,618,672 $ 4,653,062 $ General obligation refunding bonds 16,806,925 17,760,920 - - 16,806,925 17,760,920 Certificates of participation 1,325,000 1,710,000 - - 1,325,000 1,710,000 Financed purchases payable 284,845 421,496 - - 284,845 421,496 Leases/SBITA liabilities 896,278 1,475,868 51,320 162,316 947,598 1,638,184 State revolving fund loan - - 11,383,209 12,552,882 11,383,209 12,552,882 Total 23,931,720 $ 26,021,346 $ 11,434,529 $ 12,715,198 $ 35,366,249 $ 38,736,544 $ Governmental Activities Business-Type Activities Total
Long-Term Liabilities
As of June 30,
The only new borrowing was a draw on the State Water Resources revolving fund loan which is utilized for funding of wastewater projects. The outstanding loan balance decreased by $1.2 million, which due to principal payments of equal amount.

Additional information on the City’s long-term debt including compensated absences can be found in Notes 7, 8, 9 and 10 in the Notes to Basic Financial Statements section of this report.

Economic Factors and Next Year’s Budget
 Total assessed valuation in the City continues to increase in the current economic environment as market values rise and new construction remains robust. The projected increase is approximately 5.3 percent for fiscal year 2024-2025 and is reflected in the 2023-2025 biennial budgets.  Base sales tax revenues are budgeted at $17.2 million in fiscal year 2024-2025, an increase from the previous year, and at a level that reflects continued stable growth in retail sales.  2023-2024 was the thirteenth full year of collections for the Proposition L sales tax. This tax measure was passed by La Mesa voters on November 4, 2008 and became effective on April 1, 2009. Actual revenues for fiscal year 2023-2024 were above budgetary projections by $0.8 million. Budget amounts are projected to be $12.5 million in fiscal year 2024-2025, a decrease of $0.2 million from the previous year. Proceeds from the tax measure are being used to maintain reserves and to fund vital City services that otherwise would have had to be reduced.  Included in the 2023-2025 biennial budgets are cannabis business tax revenues that were approved by the voters in November 2018 and implemented in July 2019. Revenue exceeded expectations by $0.5 million in 2023-2024. Budget projections for 2023-2025 were held at $2.5 million each year.  California Public Employees Retirement System (CalPERS) employer contribution rates continue to be the primary driver of increases in citywide operating costs, exceeding any other category of expenditure in terms of percentage increase and real dollar costs. Previous changes that had a significant impact on the City’s pension costs include changes to the employer contribution methodology phased in reductions to the discount rate. Beginning in 2023, CalPERS implemented a new amortization which requires that future gains and losses be amortized over a fixed 20-year period. Adjustments to the discount rate and other foreseeable changes to valuation will be factored in at the mid-biennium budget.

CITY OF LA MESA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Fiscal Year Ended June 30, 2024
‐12-
 To help offset the impact of the CalPERS retirement rates, the City established a Section 115 Retirement Trust Fund in 2015. Combined with investment earnings, the balance in this fund is $8.6 million as of June 30, 2024. The City’s expectation is that these contributions and accumulated interest earnings will be used to soften the impact when the employer rates reach their highest point in approximately 2025.

All of the above factors were considered in the City’s 2023-2025 budget.

REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the City’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 City of La Mesa Finance Department, 8130 Allison Avenue, La Mesa, CA 91942.

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BASIC FINANCIAL STATEMENTS

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GOVERNMENT–WIDE FINANCIAL STATEMENTS

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CITY OF LA MESA
Statement of Net Position
June 30, 2024
The accompanying notes are an integral part of these financial statements. -13-
Governmental Business-Type
Activities Activities Total
Assets
Current assets:

Cash and investments $ 4,029,305 88,464,515 $ 92,493,820 $ Receivables:

Accounts, net 149,654 4,756,439 4,906,093
Loans - 375,147 375,147
Grants - 4,647,896 4,647,896
Interest - - -
Lease - 28,965,705 28,965,705
Due from successor agency - 246,881 246,881
Inventory - 373,652 373,652
Prepaid items 560,899 2,572 563,471
Advances to other agency - 4,707,657 4,707,657
Land held for resale - 8,350,000 8,350,000
Total current assets 4,739,858 140,890,464 145,630,322
Noncurrent assets:

Restricted cash and investments 8,838,281 494,797 9,333,078 Capital assets:

Nondepreciable - 35,008,162 35,008,162
Depreciable, net 36,960,293 132,528,678 169,488,971
Total capital assets 36,960,293 167,536,840 204,497,133 Total noncurrent assets 37,455,090 176,375,121 213,830,211 Total assets 42,194,948 317,265,585 359,460,533
Deferred Outflows of Resources
Pension related 1,328,456 34,239,314 35,567,770
OPEB related 322,966 2,384,206 2,707,172
Loss on refunding - 365,599 365,599
Total deferred outflows of resources 36,989,119 1,651,422 38,640,541 Liabilities
Current liabilities:

Accounts payable 99,875 5,914,219 6,014,094
Salaries payable 40,432 1,030,532 1,070,964
Deposits - 3,618,458 3,618,458
Interest payable 115,008 311,797 426,805
Unearned revenue - 9,708,727 9,708,727
Compensated absences payable - due within one year 2,362,230 - 2,362,230 Long-term liabilities - due within one year 608,661 51,320 659,981 Long-term debt - due within one year 1,418,995 1,185,420 2,604,415 Total current liabilities 1,492,055 24,973,619 26,465,674 Non-current liabilities:

Claims and judgments payable - 6,220,960 6,220,960
Compensated absences payable 2,256,442 - 2,256,442
Long-term liabilities - due in more than one year 572,462 - 572,462 Long-term debt - due in more than one year 16,712,930 10,197,789 26,910,719 Net pension liability 5,165,063 119,829,877 124,994,940 Net OPEB liability 90,220 666,024 756,244
Total noncurrent liabilities 15,453,072 146,258,695 161,711,767 Total liabilities 16,945,127 171,232,314 188,177,441
Deferred Inflows of Resources
Pension related 22,370 1,448,765 1,471,135
OPEB related 166,465 1,228,886 1,395,351
Unearned revenue - housing loans - 342,017 342,017
Leases - 26,780,790 26,780,790
Total deferred inflows of resources 29,800,458 188,835 29,989,293 Net Position
Net investment in capital assets 148,223,792 25,577,084 173,800,876 Restricted for:

Investment in Section 115 - 8,642,890 8,642,890
General government - 365,290 365,290
Public safety - 2,060,235 2,060,235
Capital projects - 10,806,355 10,806,355
Community services - 2,424,237 2,424,237
Community development - 12,992,109 12,992,109
Debt service 494,797 4,288,005 4,782,802
Total restricted 494,797 41,579,121 42,073,918
Unrestricted (deficit) 640,527 (36,580,981) (35,940,454) Total net position $ 26,712,408 153,221,932 $ 179,934,340 $

CITY OF LA MESA
Statement of Activities
For the Year Ended June 30, 2024
The accompanying notes are an integral part of these financial statements. -14-
Operating Capital Total
Charges for Contributions Contributions Program
Functions/Programs Expenses Services and Grants and Grants Revenues Primary government:

Governmental activities:

General government 11,141,071 $ 487,073 $ 766,018 $ - $ 1,253,091 $ Police 29,587,205 776,649 945,345 - 1,721,994
Fire 18,835,881 368,391 986,988 - 1,355,379
Public works 15,845,956 1,442,315 7,267,371 1,394,065 10,103,751 Community services 3,277,035 2,099,871 52,911 - 2,152,782 Community development 3,477,726 4,252,896 22,140 - 4,275,036 Interest on long-term debt 728,880 - - - -
Total governmental activities 82,893,754 9,427,195 10,040,773 1,394,065 20,862,033 Business-type activities:

Wastewater 12,130,811 13,425,593 31,170 - 13,456,763
Total business-type activities 12,130,811 13,425,593 31,170 - 13,456,763 Total primary government 95,024,565 $ 22,852,788 $ 10,071,943 $ 1,394,065 $ 34,318,796 $ General revenues:

Taxes:

Property taxes
Sales taxes
Franchise taxes
Motor vehicle license
Other taxes
Total taxes
Investment earnings
Miscellaneous
Transfers
Total general revenues and transfers
Change in net position
Net position, as previously stated
Prior period adjustment
Net position, beginning of year, as restated
Net position, end of year
Program Revenues

(continued)
-15-
Governmental Business-Type
Activities Activities Total
$ - (9,887,980) $ (9,887,980) $
- (27,865,211) (27,865,211)
- (17,480,502) (17,480,502)
- (5,742,205) (5,742,205)
- (1,124,253) (1,124,253)
- 797,310 797,310
- (728,880) (728,880)
- (62,031,721) (62,031,721)
1,325,952 - 1,325,952
1,325,952 - 1,325,952
1,325,952 (62,031,721) (60,705,769)
21,773,572 - 21,773,572
30,767,274 - 30,767,274
2,680,615 - 2,680,615
- 74,707 74,707
4,590,480 - 4,590,480
- 59,886,648 59,886,648
482,727 3,959,800 4,442,527
- 559,557 559,557
(2,325,792) 2,325,792 -
(1,843,065) 66,731,797 64,888,732
(517,113) 4,700,076 4,182,963
27,199,093 153,338,110 180,537,203
30,428 (4,816,254) (4,785,826)
27,229,521 148,521,856 175,751,377
$ 26,712,408 153,221,932 $ 179,934,340 $
and Changes in Net Position
Net (Expense) Revenue

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FUND FINANCIAL STATEMENTS

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GOVERNMENTAL FUND FINANCIAL STATEMENTS

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CITY OF LA MESA
Balance Sheet
Governmental Funds
June 30, 2024
The accompanying notes are an integral part of these financial statements. -16-
Non-Major
General Miscellaneous Governmental
Fund Grants Funds Totals
Assets
Cash and investments 53,207,450 $ 7,779,571 $ 18,064,065 $ 79,051,086 $ Restricted:

Cash and investments - - 182,590 182,590
Investment in Section 115 Trust 8,642,890 - - 8,642,890 Receivables:

Accounts 4,395,552 - 360,568 4,756,120
Loans 33,130 - 342,017 375,147
Grants - - 4,647,896 4,647,896
Lease 28,304,945 - 660,760 28,965,705
Due from other funds 1,445,101 - - 1,445,101
Due from successor agency 246,881 - - 246,881
Inventory 373,652 - - 373,652
Prepaid items 2,572 - - 2,572
Advances to other governments 4,707,657 - - 4,707,657
Land held for resale - - 8,350,000 8,350,000
Total assets 101,359,830 $ 7,779,571 $ 32,607,896 $ 141,747,297 $ Liabilities
Liabilities:

Accounts payable 1,965,034 $ 512 $ 1,296,737 $ 3,262,283 $ Salaries payable 997,292 - 24,470 1,021,762
Deposits 3,618,458 - - 3,618,458
Due to other funds - - 1,445,101 1,445,101
Unearned revenue - 8,860,773 847,954 9,708,727
Total liabilities 6,580,784 8,861,285 3,614,262 19,056,331 Deferred Inflows of Resources
Unavailable revenue - housing loans - - 342,017 342,017 Unavailable revenue - grants - 3,685,761 3,685,761
Leases 26,181,960 - 598,830 26,780,790
Total deferred inflows of resources 26,181,960 - 4,626,608 30,808,568 Fund Balances
Non-spendable:

Inventory 373,652 - - 373,652
Prepaids 2,572 - - 2,572
Advances to other governments 4,707,657 - - 4,707,657
Restricted for:

Investment in Section 115 Trust 8,642,890 - - 8,642,890 General government - - 365,290 365,290
Public safety - - 2,060,235 2,060,235
Capital outlays 3,427,328 - 3,693,266 7,120,594
Community services - - 2,424,237 2,424,237
Community development - - 12,992,109 12,992,109
Debt service - - 4,599,802 4,599,802
Unassigned (deficit) 51,442,987 (1,081,714) (1,767,913) 48,593,360 Total fund balances 68,597,086 (1,081,714) 24,367,026 91,882,398 Total liabilities, deferred inflows of
resources and fund balances 101,359,830 $ 7,779,571 $ 32,607,896 $ 141,747,297 $ Major Funds

CITY OF LA MESA
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2024
The accompanying notes are an integral part of these financial statements. -17-
Fund balances of governmental funds 91,882,398 $
Position are different because:

Capital assets used in governmental activities are not current financial resources. Therefore, they are not reported in the Governmental Funds Balance Sheet. The capital assets and intangible right-to-use assets were adjusted as follows:

Nondepreciable 35,008,162
Depreciable, net 121,715,192
Total capital assets 156,723,354
Accrued interest payable for the current portion of interest due on long-term debt has not been reported in the governmental funds. (306,480) Internal service funds were used by management to charge the costs of certain activities, such as employee benefits, workers' compensation, equipment replacement and liability risk, to individual funds. The assets and liabilities of the internal service funds were included in the governmental activities in the Government-Wide Statement of Net Position, less capital assets net of accumulated depreciation. 10,707,881
Other long-term assets are not available to pay current period expenditures, and therefore, are reported as unavailable revenue in the funds. 3,685,761
Deferred inflows and outflows of resources have not been reported in the governmental funds:

Deferred inflows - pension related (1,448,765)
Deferred inflows - OPEB related (1,228,886)
Deferred outflows - pension related 34,239,314
Deferred outflows - OPEB related 2,384,206
Deferred outflows - loss on refunding 365,599
Long-term liabilities were not due and payable in the current period.

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

Compensated absences (4,618,672)
Long-term liabilities - due within one year
Long-term liabilities - due in more than one year (18,667,877) Net pension liability (119,829,877)
Net OPEB liability (666,024)
Total long-term liabilities (143,782,450)
Net position of governmental activities 153,221,932 $
Amounts reported for governmental activities in the Statement of Net

CITY OF LA MESA
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the Year Ended June 30, 2024
The accompanying notes are an integral part of these financial statements. -18-
Non-Major
General Transportation Miscellaneous Governmental
Fund CIP (formerly major) Grants Funds Totals
Revenues:

Property taxes 19,583,792 $ - $ 1,894,647 $ 21,478,439 $ Other taxes 37,155,025 - 566,574 37,721,599
Licenses and permits 2,258,450 - 463,191 2,721,641
Fines and forfeitures 546,276 - 142,233 688,509
Use of money and property 4,594,408 161,088 1,035,278 5,790,774 Intergovernmental 1,639,768 610,528 5,641,289 7,891,585 Charges for services 2,640,725 - 438,485 3,079,210
Other revenues 975,290 - 298,079 1,273,369
Total revenues 69,393,734 771,616 10,479,776 80,645,126 Expenditures:

Current:

General government 7,990,097 - 1,073,048 9,063,145
Police 24,205,997 - 1,362,101 25,568,098
Fire 16,207,678 - 896 16,208,574
Public works 10,642,214 - - 10,642,214
Community development 2,300,928 443,959 389,743 3,134,630 Community services 2,472,055 - 83,128 2,555,183
Capital outlay - - 8,478,817 8,478,817
Debt service:

Principal retirement 504,832 - 1,301,474 1,806,306
Interest and fiscal charges 20,745 - 766,795 787,540
Total expenditures 64,344,546 443,959 13,456,002 78,244,507 Excess (deficiency) of revenues
over (under) expenditures 5,049,188 327,657 (2,976,226) 2,400,619 Other financing sources (uses):

Transfers in 2,639,823 - 9,432,190 12,072,013
Transfers out (4,252,612) (1,071,811) (6,617,798) (11,942,221) Total other financing sources (uses) (1,612,789) (1,071,811) 2,814,392 129,792 Net change in fund balances 3,436,399 (744,154) (161,834) 2,530,411 Fund balances (deficit), beginning of year, as previously reported (1,922,836) 69,800,379 (337,560) 25,744,226 93,284,209 Change within financial reporting entity (major to nonmajor) - 1,922,836 - - (1,922,836) Correction of error (4,639,692) - (3,932,222) 707,470
Fund balances (deficit), beginning of year, as restated 65,160,687 - (337,560) 24,528,860 89,351,987 Fund balances (deficit), end of year 68,597,086 $ - $ (1,081,714) $ 24,367,026 $ 91,882,398 $ Major Funds

CITY OF LA MESA
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities
For the Year Ended June 30, 2024
The accompanying notes are an integral part of these financial statements. -19-
Net change in fund balances - total governmental funds 2,530,411 $ differs because:

Governmental funds report capital outlays as expenditures. However, in the Government-Wide Statement of Activities, the costs of those assets are allocated over their estimated useful lives as depreciation and amortization expense. This was the amount by which
depreciation and amortization expense exceeded capital outlays in the current period (net of internal service funds). 2,344,194 Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. 3,664,494 The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of longterm debt consumes the current financial resources of the governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums, discounts, and similar items when the debt is first issued, whereas these amounts are deferred and amortized, in the statement of activities.

Principal repayments 1,806,306
Amortization of premium and loss on refunding, net 33,529 Changes in pension and OPEB related items (6,357,118)
Accrued interest for debt service. This is the net change in accrued interest for the current period. 25,131
Compensated absences expense was reported in the Statement of Activities, but does not require the use of current financial resources and, therefore, the change in compensated absences is not reported as an expenditure in governmental funds. 34,390
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.

Internal service funds were used by management to charge the costs of certain activities, such as employee benefits, workers' compensation, equipment replacement and liability risk, to individual funds. The net revenue (excluding depreciation and amortization) of the internal service funds was reported with governmental activities. 618,739 Change in net position of governmental activities 4,700,076 $ Amounts reported for governmental activities in the Statement of Activities

PROPRIETARY FUND FINANCIAL STATEMENTS

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CITY OF LA MESA
Statement of Net Position
Proprietary Funds
June 30, 2024
The accompanying notes are an integral part of these financial statements. -20-
Governmental
Activities
Internal
Wastewater Service Funds
Assets
Current assets:

Cash and investments 4,029,305 $ 9,413,429 $
Accounts receivable, net 149,654 319
Prepaid expenses - 560,899
Total current assets 4,739,858 9,413,748
Noncurrent assets:

Restricted cash and investments 494,797 12,801
Capital assets:

Depreciable, net 10,813,486 36,960,293
Total capital assets, net 36,960,293 10,813,486
Total noncurrent assets 37,455,090 10,826,287
Total assets 20,240,035 42,194,948
Deferred Outflows of Resources
Pension related - 1,328,456
OPEB related - 322,966
Total deferred outflows of resources 1,651,422 -
Liabilities
Current liabilities:

Accounts payable 2,651,936 99,875
Salaries payable 8,770 40,432
Interest payable 5,317 115,008
Long-term liabilities - due in one year 51,320 49,056
Notes payable - due within one year 1,185,420 -
Total current liabilities 1,492,055 2,715,079
Noncurrent liabilities:

Long-term liabilities - due in more than one year - 596,115 Notes payable - due in more than one year 10,197,789 -
Claims payable 6,220,960 -
Net pension liability - 5,165,063
Net OPEB liability - 90,220
Total noncurrent liabilities 15,453,072 6,817,075
Total liabilities 16,945,127 9,532,154
Deferred Inflows of Resources
Pension related - 22,370
OPEB related - 166,465
Total deferred inflows of resources 188,835 -
Net Position
Net investment in capital assets 25,577,084 10,168,315
Restricted 12,801 494,797
Unrestricted 526,765 640,527
Total net position 26,712,408 $ 10,707,881 $

CITY OF LA MESA
Statement of Revenues, Expenses, and Changes in Fund Net Position Proprietary Funds
For the Year Ended June 30, 2024
The accompanying notes are an integral part of these financial statements. -21-
Governmental
Activities
Internal Service
Wastewater Funds
Operating revenues:

Charges for services 13,425,593 $ 7,687,836 $
Other operating revenues - 353,829
Total operating revenues 13,425,593 8,041,665
Operating expenses:

Salaries and payroll 2,474,846 253,199
Professional services 8,250,514 6,748,279
Supplies, materials and miscellaneous 172,481 620,920
Insurance premiums and settlements - 2,934,214
Maintenance expenses 123,661 -
Depreciation 918,892 1,131,298
Amortization - 51,027
Total operating expenses 11,940,394 11,738,937
Operating income (loss) 1,485,199 (3,697,272)
Nonoperating revenues (expenses):

Investment income (loss) 482,727 958,418
Interest (expense) (190,417) (20,732)
Intergovernmental 31,170 -
Total nonoperating revenues (expenses) 323,480 937,686
Transfers:

Transfers in - 2,196,000
Transfers out (2,325,792) -
Total transfers (2,325,792) 2,196,000
Change in net position (517,113) (563,586)
Net position, beginning of year, as previously reported 27,199,093 6,479,244 Correction of error 30,428 4,792,223
Net position, beginning of year, as restated 27,229,521 11,271,467 Net position, end of year 26,712,408 $ 10,707,881 $

CITY OF LA MESA
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2024
The accompanying notes are an integral part of these financial statements. -22-
Governmental
Activities
Internal
Wastewater Service Funds

CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers/other funds $ 7,732,499 13,456,142 $ Cash payments to suppliers for goods and services (2,835,367) (8,527,961) Cash payments to employees for services (247,711) (2,306,559) Insurance premiums and settlements (5,974,850) -
Other operating revenues 354,292 -
Net Cash Provided by (Used for) Operating Activities (971,137) 2,621,622

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Intergovernmental - 31,170
Transfers in 2,196,000 -
Transfers out - (2,325,792)
Cash paid to other funds (126,198) -
Net Cash Provided by (Used for) Noncapital and Related Financing Activities (2,294,622) 2,069,802

CASH FLOWS FROM CAPITAL AND RELATED FINANCING

ACTIVITIES
Acquisition of capital assets - (176,060)
Payment of interest (20,732) (200,272)
Payments on notes/leases payable (184,935) (1,280,963)
Net Cash Provided by Capital and Related Financing Activities (1,657,295) (205,667)

CASH FLOWS FROM INVESTING ACTIVITIES
Investment income 958,418 482,727
Net Cash Used for Investing Activities 958,418 482,727
Net Increase (Decrease) in Cash and Cash Equivalents 1,851,416 (847,568) Cash and Cash Equivalents - beginning of the year 7,574,814 5,371,670 Cash and Cash Equivalents - end of the year $ 9,426,230 4,524,102 $

RECONCILIATION TO STATEMENT OF NET POSITION
Cash and cash equivalents - current $ 9,413,429 4,029,305 $ Cash and cash equivalents - restricted 12,801 494,797
Total cash and cash equivalents $ 9,426,230 4,524,102 $ Reconciliation of operating income (loss) to net cash provided by (used for) operating activities:

Operating income (loss) $ (3,697,272) 1,485,199 $
Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities:

Depreciation expense 1,131,298 918,892
Amortization expense 51,027 -
Changes in assets and liabilities:

Accounts receivable 45,126 30,549
Deferred outflows of resources - 84,425
Accounts payable 469,556 18,695
Claims payable 1,023,640 -
Salaries and benefits payable 5,488 1,023
Deferred inflows of resources - (21,925)
Net pension liability - 214,459
Net OPEB liability - (109,695)
Net Cash Provided by (Used for) Operating Activities $ (971,137) 2,621,622 $

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FIDUCIARY FUND FINANCIAL STATEMENTS

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CITY OF LA MESA
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2024
The accompanying notes are an integral part of these financial statements. -23-
Successor
Agency
Cash and investments 641,431 $
Capital assets not being depreciated:

Land 160,000
Total assets 801,431
Liabilities:

Accounts payable 1,935
Salaries payable 1,586
Due to the City 246,881
Advance from other governments 4,707,657
Due to other governments 471,397
Total liabilities 5,429,456
Held in trust for successor agency (4,628,025) $
Net Position (Deficit)
Assets
Liabilities

CITY OF LA MESA
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2024
The accompanying notes are an integral part of these financial statements. -24-
Successor
Agency
RPTTF Distribution $ 619,130
Investment Income 16,607
Total additions 635,737
Administrative expenses 127,778
Contributions to other agencies 93,087
Interest 14,088
Total deductions 234,953
Change in net position 400,784
Net position (deficit), beginning of year, as previously reported (5,204,805) Correction of error 175,996
Net position (deficit), beginning of year, as restated (5,028,809) Net position (deficit), end of year (4,628,025) $
Additions
Deductions

CITY OF LA MESA
Index to Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-25-
Page
Note 1 – Summary of Significant Accounting Policies 27
A. Description of the Reporting Entity 27
B. Basis of Accounting and Measurement Focus 27
C. Fund Classifications 30
D. Use of Restricted/Unrestricted Net Position 31
E. Cash, Cash Equivalents and Investments 31
F. Restricted Cash and Investments 31
G. Inventories 31
H. Interfund Transactions 32
I. Capital Assets 32
J. Compensated Absences 32
K. Long-Term Debt 32
L. Interest Payable 33
M. Property Taxes 33
N. Pension Plan 33
O. Other Postemployment Benefits (OPEB) 34
P. Net Position 34
Q. Fund Balances 35
R. Use of Estimates 35
S. Implementation of New GASB Pronouncement 36
Note 2 – Cash and Investments 37
A. Cash Deposits 37
B. Investments 37
C. Risk Disclosures 38
D. Summary of Investments to Maturity 40
E. Fair Value Measurements 40
Note 3 – Loans Receivable 41
Note 4 – Lease Receivable 41
Note 5 – Interfund Transactions 42
A. Advances From/To Other Governments 42
B. Due To/From Other Funds 42
C. Transfers In and Out 43
Note 6 – Capital Assets 44
A. Government-Wide Financial Statements 44
B. Fund Financial Statements 46

CITY OF LA MESA
Index to Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-26-
Page
Note 7 – Long-Term Debt 47
A. Governmental Activities Long-Term Debt 47
B. Business-Type Activities Long-Term Debt 50
Note 8 – Financed Purchase 51
Note 9 – Lease and Subscription Liability 52
Note 10 – Compensated Absences 54
Note 11 – Other Post Employment Benefits 54
Note 12 – Other Required Disclosures 59
Note 13 – Risk Management 59
Note 14 – Defined Benefit Pension Plans 60
A. General Information about the Pension Plans 60
B. Net Pension Liability 62
C. Changes in Net Pension Liability 66
D. Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions 68
E. Payable to the Pension Plan 71
Note 15 – Retirement Enhancement Plan 71
A. PARS Retirement Enhancement Plan 71
B. Net Pension Liability 73
C. Changes in the Net Pension Liability 75
D. Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions 77
E. Payable to the Pension Plan 77
Note 16 – Commitments and Contingencies 78
Note 17 – Related Party Transactions 78
Note 18 – Successor Agency 79
Note 19 – Successor Agency Long-Term Debt 79
Note 20 – Risk, Uncertainties & Contingencies 80
Note 21 – Prior Period Restatement 80

NOTES TO THE BASIC FINANCIAL STATEMENTS

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CITY OF LA MESA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-27-

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of the City of La Mesa, California (City) have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental agencies.

The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the City's accounting policies are described below.

A. Description of the Reporting Entity
The basic financial statements of the City include the financial activities of the City and its component units. The component units discussed below are included in the City's reporting entity through a blended presentation because of the significance of their operational and financial relationship with the City. Although these component units are legally separate from the City, they are reported as part of the primary government because their boards consist of all members of the City Council.

Blended Component Units
The La Mesa Public Financing Authority (Financing Authority) - The City established the Financing Authority on April 11, 2006, by and among the City and the La Mesa Community Redevelopment Agency (Members). The Financing Authority was created for the purpose of providing financing for public capital improvements to be owned by any of the Members. The Financing Authority was included within the scope of the reporting entity of the City because its governing body is composed in its entirety of council members of the City. There were no separate financial statements prepared for the Financing Authority.

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

Government - Wide Financial Statements
The City's government-wide financial statements include a Statement of Net Position and a Statement of Activities and Changes in Net Position. These statements present summaries of governmental and business-type activities for the City accompanied by a total column. Fiduciary activities of the City are not included in these statements.

These basic financial statements are presented on an "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all of the City's assets and liabilities, including capital assets, as well as infrastructure assets and long-term liabilities, are included in the accompanying Statement of Net Position. The Statement of Activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned, while expenses are recognized in the period in which the liability is incurred.

CITY OF LA MESA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-28-

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued) B. Basis of Accounting and Measurement Focus, (continued) Government - Wide Financial Statements, (continued)
Certain types of transactions are reported as program revenues for the City in three categories:
 Charges for services
 Operating grants and contributions
 Capital grants and contributions
Certain eliminations have been made as prescribed by generally accepted accounting principles in regards to interfund activities, payables and receivables. All internal balances in the Statement of Net Position have been eliminated except those representing balances between the governmental activities and the business-type activities, which are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities and Changes in Net Position, internal service fund transactions have been eliminated; however, those transactions between governmental and business-type activities have not been eliminated. The following interfund activities have been eliminated:
 Due to/from other funds
 Advances to/from other funds
 Transfers in/out
The City applies all applicable GASB pronouncements (including all NCGA Statements and Interpretations currently in effect).

Governmental Fund Financial Statements
Governmental fund financial statements include a Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances for all major governmental funds and non-major funds aggregated. An accompanying schedule is presented to reconcile and explain the differences in net position as presented in these Statements to the Net Position presented in the government-wide financial statements. The City has presented all major funds that met the applicable criteria.

All governmental funds are accounted for on a spending or "current financial resources" measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the Balance Sheet. The Statement of Revenues, Expenditures and Changes in Fund Balances presents increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period.

CITY OF LA MESA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-29-

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued) B. Basis of Accounting and Measurement Focus, (continued) Governmental Fund Financial Statements, (continued)
Revenues are recorded when received in cash, except for those revenues subject to accrual (generally 60 days after year-end) which are recognized when due. The primary revenue sources, which have been treated as susceptible to accrual by the City, are property tax, sales tax, intergovernmental revenues and other taxes. Expenditures are recorded in the accounting period in which the related fund liability is incurred.

Unavailable revenues arise when potential revenues do not meet both the "measurable" and "available" criteria for recognition in the current period. Unearned revenues arise when the government receives resources before it has a legal claim to them, as when grant monies are received prior to incurring qualifying expenditures. In subsequent periods, when both revenue recognition criteria are met or when the government has a legal claim to the resources, the unavailable revenue is removed from the Combined Balance Sheet and revenue is recognized.

Proprietary Fund Financial Statements
Proprietary fund financial statements include a Statement of Net Position, a Statement of Revenues, Expenses and Changes in Fund Net Position, and a Statement of Cash Flows for each major proprietary fund.

A separate column representing internal service funds is also presented in these statements.

However, internal service balances and activities have also been combined with the governmental activities in the Government-Wide Financial Statements.

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

Operating revenues in the proprietary funds are those revenues that are generated from the primary operations of the fund. All other revenues are reported as non-operating revenues. Operating expenses are those expenses that are essential to the primary operations of the fund. All other expenses are reported as non-operating expenses.

Fiduciary Fund Financial Statements
Fiduciary fund financial statements include a Statement of Fiduciary Net Position and Statement of Changes in Fiduciary Net Position. The City's fiduciary funds represent Private Purpose Trust Funds which act in a fiduciary capacity for assets held for the payment of recognized obligations of the former redevelopment agency. They are accounted for in essentially the same manner as proprietary funds.

CITY OF LA MESA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-30-

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued) B. Basis of Accounting and Measurement Focus, (continued) C. Fund Classifications
The City reports the following major governmental funds:

General Fund – The General Fund is the City’s primary operating fund and accounts for all financial resources of the general government, except those required to be accounted for in another fund.

Miscellaneous Grants Fund – The Miscellaneous Grants Fund is used for reporting of grants that are not public safety or community services related. This includes, but is not limited to, COVID-19 relief grants.

The City reports the following major enterprise funds:

Wastewater Fund – The Wastewater Fund accounts for the operation and maintenance of the City’s wastewater system.

Additionally, the City reports the following funds:

Special Revenue Funds – Special revenue funds are used to account for the proceeds of specific revenue sources that are legally restricted or committed to expenditure for specified purposes other than debt service or capital projects. These funds ensure that the revenue is used only for its intended purpose, such as funding for road maintenance, public safety, or grants.

Capital Projects Funds – Capital projects funds are used to account for financial resources that are restricted, committed, or assigned to the acquisition or construction of major capital assets (other than those financed by proprietary funds or trust funds). These funds help track the inflows and outflows related to large-scale infrastructure projects.

Debt Service Funds – Debt service funds are used to account for the accumulation of resources that are restricted, committed, or assigned to the payment of principal and interest on general longterm debt. These funds ensure that the government sets aside sufficient resources to meet its debt obligations as they come due.

Internal Service Funds – Internal service funds account for the financing of equipment and fleet, risk management services, and benefit services to other departments on a cost reimbursement basis.

Private Purpose Trust Fund – The Private Purpose Trust Fund holds the assets of the Successor Agency which were received from the City’s former redevelopment agency. The redevelopment agency was dissolved per Assembly Bill X1 26 which dissolved redevelopment agencies in California.

CITY OF LA MESA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-31-

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued) D. Use of Restricted/Unrestricted Net Position
When an expense is incurred for purposes for which both restricted and unrestricted net position is available, the City's policy is to apply restricted net position first.

E. Cash, Cash Equivalents and Investments
The City pools its available cash for investment purposes. The City's cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturity of three months or less from the date of acquisition. Cash and cash equivalents are combined with investments and displayed as Cash and Investments.

In accordance with generally accepted accounting principles, highly liquid market investments with maturities of one year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value. Market value is used as fair value for those securities for which market quotations are readily available.

The City participates in an investment pool managed by the State of California titled Local Agency Investment Fund (LAIF) which has invested a portion of the pool funds in Structured Notes and Asset-backed Securities. LAIF’s investments are subject to credit risk with the full faith and credit of the State of California collateralizing these investments. In addition, these Structured Notes and Asset-backed Securities are subject to market risk as to change in interest rates.

For purposes of reporting cash flows, the City considers each fund's share in the cash and investments pool to be cash and cash equivalents including cash with fiscal agents.

In accordance with generally accepted accounting principles, certain disclosure requirements, if applicable for deposit and investment risk are specified for the following areas:
 Interest Rate Risk
 Credit Risk
 Overall
 Custodial Credit Risk
 Concentration of Credit Risk
 Foreign Currency Risk
F. Restricted Cash and Investments
Certain restricted cash and investments are held by fiscal agents for the redemption of bonded debt and for acquisition and construction of capital projects. Cash and investments are also restricted for deposits held for others within the enterprise funds.

G. Inventories
Inventory is valued at the lower of cost (first-in, first-out) or market value and consists of expendable supplies held for consumption. Inventories are recorded using the consumption (capitalization) method.

CITY OF LA MESA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-32-

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued) H. Interfund Transactions
Activity 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 noncurrent 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." I. Capital Assets
The City's assets are capitalized at historical cost or estimated historical cost. City policy has set the capitalization threshold for reporting general capital assets at $8,000 and for reporting infrastructure assets at $25,000. Gifts or contributions of capital assets are reported at acquisition value when received. Depreciation is recorded on a straight-line basis over the useful lives of the assets as follows:

Buildings and Improvements 40 years
Improvements other than buildings 12 – 50 years
Machinery and Equipment 5 – 20 years
Infrastructure 20 – 60 years
The City defines infrastructure as the basic physical assets that allow the City to function. The assets include the streets, sewer collection and treatment system, park and recreation lands and improvement system, storm water conveyance system, and buildings combined with the site amenities, such as parking and landscaped areas used by the City in the conduct of its business.

Each major infrastructure system can be divided into subsystems. For example, the street system can be subdivided into pavement, curb and gutters, sidewalks, medians, streetlights, traffic control devices (signs, signals and pavement markings), landscaping and land. These subsystems were not delineated in the basic financial statements. The appropriate operating department maintains information regarding the subsystems.

J. Compensated Absences
The City accounts for compensated absences (unpaid vacation, sick leave and compensatory time) in accordance with generally accepted accounting principles. In governmental fund types, compensated absences are recorded as expenditures in the year paid, as it is the City's policy to liquidate any unpaid vacation or sick leave at June 30 from future resources rather than currently available expendable resources. Accordingly, the entire unpaid liability for the governmental fund types is recorded in the Government-Wide Financial Statements.

K. Long-Term Debt
In the Government-Wide Financial Statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bond issuance costs are expensed in the period incurred. Bonds payable are reported net of the applicable bond premium or discount.

CITY OF LA MESA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-33-

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued) K. Long-Term Debt (continued)
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financial sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

L. Interest Payable
In the Government-Wide Financial Statements, interest payable on long-term debt is recognized as the liability is incurred for governmental fund types and proprietary fund types.

In the fund financial statements, propriety fund types recognize the interest payable when the liability is incurred.

M. Property Taxes
Under California law, property taxes are assessed and collected by the counties at 1% of assessed value, plus other increases approved by the voters. The property taxes are pooled and are then allocated to the cities based on complex formulas. Accordingly, the City accrues only those taxes which are received within 60 days after year-end.

The City's property taxes are levied and collected by the San Diego County Treasurer. Property taxes (secured and unsecured) are levied on July 1 based on the previous March 1 assessed values as determined by the San Diego County Assessor. Secured taxes are due in two equal installments on November 1 and February 1 following the levy date and become delinquent on December 10 and April 10 following the levy date. Unsecured taxes are due on July 1 and become delinquent August 31 following the levy date.

N. Pension Plan
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 LA MESA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-34-

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued) N. Pension Plan (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, 2022
Measurement Date (MD) June 30, 2023
Measurement Period (MP) July 1, 2022 to June 30, 2023
The City additionally reports a PARS Retirement Enhancement Pension Plan for which the following actuarial valuation timeframes are used:

Valuation Date (VD) January 1, 2023
Measurement Date (MD) June 30, 2023
Measurement Period (MP) July 1, 2022 to June 30, 2023
O. Other Postemployment Benefits (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows and 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.

GASB 75 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) July 1, 2023
Measurement Date (MD) June 30, 2023
Measurement Period (MP) July 1, 2022 to June 30, 2023
P. Net Position
In the Government-Wide Financial Statements, net position are classified in the following categories:

Net Investment in Capital Assets - This amount consists of capital assets net of accumulated depreciation and reduced by outstanding debt that is attributed to the acquisition, construction, or improvement of the assets.

Restricted Net Position - This amount is restricted by external creditors, grantors, contributors, laws or regulations of other governments.

CITY OF LA MESA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-35-

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued) P. Net Position (continued)
Unrestricted Net Position - This amount is all net position that do not meet the definition of "net investment in capital assets" or "restricted net position." Q. Fund Balances
In accordance with generally accepted accounting principles, the following classifications describe the relative strength of the spending constraints placed on the purposes for which resources can be used:
 Nonspendable – amounts that are not in a spendable form (such as inventory) or are required to be maintained intact.
 Restricted – amounts constrained to specific purposes by their providers (such as grantors, bondholders and higher levels of government), through constitutional provisions or by enabling legislation.
 Committed – amounts constrained to specific purposes by a government itself, using the highest level of decision-making authority; to be reported as committed, amounts cannot be used for any other purpose unless the government takes the same highest level action to remove or change the constraint.
 Assigned – amounts a government intends to use for a specific purpose; intent can be expressed by the governing body or by an official or body to which the governing body delegates the authority.
 Unassigned – amounts that are for any purpose; positive amounts are reported only in a general fund.

The City Council, establishes (and modifies or rescinds) fund balance commitments by passage of an ordinance or resolution. The Director of Finance has the authority, granted by the Council, to commit City resources. When both restricted and unrestricted resources are available for use when an expenditure is incurred, it is the City’s policy to use restricted resources first, then unrestricted resources as they are needed. It is also the City’s policy to consider committed amounts as being reduced first, followed by assigned amounts and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of those unrestricted fund balance classifications could be used.

R. Use of Estimates
The preparation of the basic financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities. In addition, estimates affect the reported amount of expenses. Actual results could differ from these estimates and assumptions.

CITY OF LA MESA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-36-

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued) S. Implementation of New GASB Pronouncement
For the year ended June 30, 2024, the financial statements include the adoption of GASB Statement No. 100 – Accounting Changes and Error Corrections. This Statement defines accounting changes as changes in accounting principles, changes in accounting estimates, and changes to or within the financial reporting entity and describes the transactions or other events that constitute those changes. As part of those descriptions, for (1) certain changes in accounting principles and (2) certain changes in accounting estimates that result from a change in measurement methodology, a new principle or methodology should be justified on the basis that it is preferable to the principle or methodology used before the change. That preferability should be based on the qualitative characteristics of financial reporting—understandability, reliability, relevance, timeliness, consistency, and comparability. This Statement also addresses corrections of errors in previously issued financial statements. See Note 21 for details.

Remainder of this page intentionally left blank.

CITY OF LA MESA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-37-

2. CASH AND INVESTMENTS
The following is a summary of cash and investments at June 30, 2024:

Fiduciary
Funds
Governmental Business-Type Statement of
Activities Activities Fiduciary Assets Total
Cash and investments 88,464,515 $ $ 4,029,305 $ 93,135,251 641,431 $ Restricted:

Cash and investments 195,391 494,797 - 690,188
Investments in Section 115 Trust 8,642,890 - - 8,642,890 Total $ 4,524,102 97,302,796 $ 641,431 $ 102,468,329 $
Government-Wide
Statement of Net Position
Cash, cash equivalents, and investments consisted as follows, at June 30, 2024:

Cash and cash equivalents:

Petty Cash $ 1,250
Demand Deposit (731,005)
Total cash and cash equivalents (729,755)
Investments:

Local Agency Investment Fund 44,883,846
Investment in Section 115 Trust 8,642,890
Negotiable Certificates of Deposit 14,188,110
U.S. Government Obligations 35,483,238
Total Investments 103,198,084
Total cash and investments $ 102,468,329
A. Cash Deposits
As of June 30, 2024, none of the City's cash deposits with financial institutions in excess of federal depository insurance limits was held in uncollateralized accounts.

B. Investments
The City is authorized by State statutes and in accordance with the City's Investment Policy (Policy) to invest in the following:
 Certificates of Deposit
 Negotiable Certificates of
Deposit
 U.S. Treasury Obligations
 U.S. Agency Securities
 Bankers Acceptances
 California Local Agency Investment
Fund (LAIF)
 Repurchase Agreements
 Mutual Funds
 Commercial Paper
 Municipal Securities
 Corporate Notes

CITY OF LA MESA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-38-

2. CASH AND INVESTMENTS, (continued)
B. Investments, (continued)
The Policy, in addition to State statutes, establishes that funds on deposit in banks must be federally insured or collateralized and investments shall: (1) have maximum maturity not to exceed five years; (2) be laddered and based on cash flow forecasts; and (3) be subject to limitations to a certain percent of the portfolio for each of the authorized investments.

The City's investments with Local Agency Investment Fund (LAIF) at June 30, 2024 included a portion of the pooled funds invested in Structured Notes and Assets-Backed Securities. These investments included the following:

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

Asset-Backed Securities, the bulk of which are mortgage-backed securities, entitle their purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages (such as CMO's) or credit card receivables.

As of June 30, 2024, the City had $44,883,846 invested in LAIF.

C. Risk Disclosures
Interest Rate Risk
As a means of limiting its exposure to fair value losses arising from rising interest rates, the City's investment policy requires structuring the portfolio in a way so that securities mature to meet the City’s cash requirements for ongoing obligations; investing primarily in shorter term securities; and not paying a premium for any secondary market security which includes a call feature. The City is in compliance with this provision of the Policy.

Credit Risk
The City's Policy limits investments in commercial paper to the highest grade of stand alone or enhanced (prime) commercial paper as rated by Moody's Investor Service, Standard & Poor's Corporation, or Fitch Financial Services and requires that the management company of mutual funds must have attained the highest ranking or the highest letter and numerical rating provided by not less than two nationally recognized statistical rating organizations.

CITY OF LA MESA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-39-

2. CASH AND INVESTMENTS, (continued)
C. Risk Disclosures, (continued)
The City's investments are rated by the nationally recognized statistical rating organizations as follows:

Standard
Moody's & Poor's
Investment Pools:

State of California - Local Agency Investment Fund Not Rated Not Rated Investment in Section 115 trust Not Rated Not Rated
Negotiable Certificates of Deposit Aaa AAA
U.S. Government Agencies:

FNMA Aaa AA+
FHLB Aaa AA+
FHLMC Aaa AA+
Concentration of Credit Risk
The City’s Investment Policies instructs the city to remain within defined portfolio percentages to prevent a substantial loss related to the failure of one issue or issuer. For the Local Agency Investment Fund, there is no dictated percentage limit over the investment. For the Investment in Section 115 trust, there is no dictated percentage limit over the investment. For Certificates of Deposit, the City’s Investment Policy dictates that no more than 30% of the total portfolio may be invested in all Certificates of Deposits. As of June 30, 2024, the City is in compliance with its investment policies.

Custodial Credit Risk
The California Government Code (Code) requires California banks and savings and loan associations to secure the City's cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in the City's name.

The market value of pledged securities must equal at least 110% of the City's cash deposits.

California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City's total cash deposits. The City has waived collateral requirements for cash deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation. The City’s cash balances held with financial institutions in excess of the FDIC limit are held in collateralized accounts.

CITY OF LA MESA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-40-

2. CASH AND INVESTMENTS, (continued)
C. Risk Disclosures, (continued)
The following is a chart of City's investment portfolio:

Amount
Moody's Rating Invested
Aaa 34,965,913 $
Aa2 456,520
A1 497,270
N/A 5,297,743
Not rated 61,980,638
Total $ 103,198,084
D. Summary of Investments to Maturity
Investments held in the City Treasury grouped by maturity date at June 30, 2024, are shown below:

Investment Type Total 0-11 months 12-23 months 24-35 months 36-47 months 48-59 months Local Agency Investment Fund 44,883,846 $ 44,883,846 $ - $ - $ - $ - $ Investment in Section 115 Trust 8,642,890 8,642,890 - - - - Negotiable Certificates of Deposit 14,188,110 4,377,659 1,628,710 4,277,111 2,895,642 1,008,988 U.S. Government Obligations 35,483,238 2,966,390 10,452,370 16,841,190 983,520 4,239,768 Total 103,198,084 $ 60,870,785 $ 12,081,080 $ 21,118,301 $ 3,879,162 $ 5,248,756 $ Maturity
E. Fair Value Measurements
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. The City has the following recurring fair value measurements as of June 30, 2024:

Investments by Fair Value Level Total Level 1 Level 2 Level 3 Negotiable Certificates of Deposit 14,188,110 $ - $ 14,188,110 $ - $ U.S. Government Obligations 35,483,238 35,483,238 - -
Total investments by fair value 49,671,348 35,483,238 $ 14,188,110 $ - $ Investments not subject to GASB 72:

Investment in Section 115 trust 8,642,890
Local Agency Investment Fund 44,883,846
Total 103,198,084 $
Fair Value Measurement Using

CITY OF LA MESA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-41-

3. LOANS RECEIVABLE
As of June 30, 2024 the following loans were outstanding:

Governmental
Funds
Computer Loan Program $ 33,130
Housing Rehabilitation Loan Program 117,017
Total $ 375,147
Computer Loan Program
Zero interest loans were provided to City employees for purchases of personal computers. Loan payments are deducted from bi-weekly paychecks and are secured by the employees' accrued vacation hours. At June 30, 2024, the outstanding amount due to the City was $33,130.

Housing Rehabilitation Loan Program
Low interest loans were provided to qualified borrowers for financial assistance for improvements to low and moderate income housing. The loans, which are secured by trust deeds on the property, are due upon sale of property or death of the homeowner. At June 30, 2024, the outstanding amount due to the City was $117,017.

Housing Successor Loans
Housing Successor loans in the amount of $225,000 consist of low and moderate income housing loans for three properties located on Lubbock Avenue.

The low and moderate income housing loans are secured by trust deeds on the individual properties and are payable upon sale or transfer of the property by the original property owner.

4. LEASE RECEIVABLE
As of June 30, 2024, the City had 5 active leases. The leases have receipts that range from $8,802 to $414,691 and interest rates that range from 0.6720% to 2.5800%. As of June 30, 2024, the total combined value of the lease receivable is $28,965,705, and the combined value of the deferred inflow of resources is $26,780,790.

CITY OF LA MESA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-42-

5. INTERFUND TRANSACTIONS
A. Advances From/To Other Governments
As of June 30, 2024, balances of advances from/advances to were as follows:

Governmental Activities:

General Fund 4,707,657 $
Total 4,707,657 $
Advances to Other
Governments
Successor
Agency
Advances From
Other
Governments
The advance from the Housing Successor Agency to the City represents the amount owed for the sale of the site of the former police station for the purposes of developing low and moderate income housing. At June 30, 2024, the outstanding balance is $4,707,657.

B. Due To/From Other Funds
Interfund receivable and payable balances at June 30, 2024 were as follows:

Due to Other
Funds
Non-Major
Governmental
Funds Total
General
Fund $ 1,445,101 1,445,101 $
Due From
Other Funds
The above amounts represent short-term borrowings from the General Fund for temporary cash shortfalls for the funds listed above.

CITY OF LA MESA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-43-

5. INTERFUND TRANSACTIONS, (continued)
C. Transfers In and Out
Transfers in and out for the year ended June 30, 2024 were as follows:

Non-Major Internal
General Governmental Service
Fund Funds Funds Total
Governmental Activities:

General Fund 2,056,612 $ 2,196,000 $ 4,252,612 $
Miscellaneous Grants 1,071,811 1,071,811
Non-Major Governmental Funds 314,031 6,303,767 6,617,798 Business-Type Activities:

Wastewater 2,325,792 2,325,792
Total $ 9,432,190 2,639,823 $ 2,196,000 $ 14,268,013 $
Transfers out
Governmental Activities
Transfers In
Throughout the year, transfers are used to move revenues from the fund with collection authority to the fund with spending authority. This is the case with the following significant transfers:

General Fund Transfers In total $2,639,823 is comprised of: $101,925 from Fund 302 Transportation CIP Fund; $209,064 from Fund 218 Road Maint & Rehab Fund; $3,042 from Fund 214 Capital Projects Funds; $2,325,792 from Wastewater Fund 207.

Non-Major Governmental Funds Transfers In total $9,432,190 is comprised of: $2,056,612 from General Fund; $1,071,811 from Miscellaneous Grants; $6,303,767 from various Non-Major Governmental Funds.

Internal Service Funds Transfer In total $2,196,000 was received from the General Fund.

CITY OF LA MESA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-44-

6. CAPITAL ASSETS
At June 30, 2024 the City's capital assets consisted of the following:

Governmental Business-Type
Activities Activities Total
Non-depreciable assets:

Land $ 11,398,339 $ - $ 11,398,339
Right-of-way 15,905,824 - 15,905,824
Construction in progress 7,703,999 - 7,703,999
Total non-depreciable assets 35,008,162 - 35,008,162
Depreciable assets:

Buildings and improvements 50,197,281 - 50,197,281
Vehicles and equipment 18,230,526 2,202,180 20,432,706
Right-to-use asset - equipment 530,443 - 530,443
Right-to-use asset - subscription 1,557,172 157,356 1,714,528 Infrastructure 215,245,636 57,981,302 273,226,938
Total depreciable assets, at cost 285,761,058 60,340,838 346,101,896 Accumulated Depreciation:

Buildings and improvements (17,282,269) - (17,282,269)
Vehicles and equipment (9,502,779) (1,326,989) (10,829,768) Right-to-use asset - equipment (163,324) - (163,324)
Right-to-use asset - subscription (912,366) (87,022) (999,388) Infrastructure (125,371,642) (21,966,534) (147,338,176) Total accumulated depreciation (153,232,380) (23,380,545) (176,612,925) Total depreciable assets, net 132,528,678 36,960,293 169,488,971 Total capital assets $ 167,536,840 $ 36,960,293 $ 204,497,133

CITY OF LA MESA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-45-

6. CAPITAL ASSETS, (continued)
The following is a summary of capital assets for governmental activities:

Governmental activities: Balance Prior Period Balance
June 30, 2023 Adjustment Additions Deletions June 30, 2024 Non-depreciable assets:

Land $ 11,398,339 $ - $ - $ - $ 11,398,339
Right-of-way 15,905,824 - - - 15,905,824
Construction in progress 7,789,883 - 7,993,670 (8,079,554) 7,703,999 Total non-depreciable assets 35,094,046 - 7,993,670 (8,079,554) 35,008,162 Depreciable assets:

Buildings and improvements 47,796,770 - 2,400,511 - 50,197,281 Vehicles and equipment 17,917,138 (2,684,596) 3,587,931 (589,947) 18,230,526 Right-to-use asset - equipment 530,443 - - - 530,443
Right-to-use asset - subscription 1,619,802 - - (62,630) 1,557,172 Infrastructure 205,556,431 3,264,668 6,451,513 (26,976) 215,245,636 Total depreciable assets, at cost 273,420,584 580,072 12,439,955 (679,553) 285,761,058 Accumulated Depreciation
Buildings and improvements (18,738,367) 2,449,088 (992,990) - (17,282,269) Vehicles and equipment (9,308,380) 346,952 (1,131,298) 589,947 (9,502,779) Right-to-use asset - equipment (108,263) - (55,061) - (163,324) Right-to-use asset - subscription (480,058) - (447,183) 14,875 (912,366) Infrastructure (113,795,239) (7,644,484) (3,932,728) 809 (125,371,642) Total accumulated depreciation (142,430,307) (4,848,444) (6,559,260) 605,631 (153,232,380) Total depreciable assets, net 130,990,277 (4,268,372) 5,880,695 (73,922) 132,528,678 Total governmental activities $ 166,084,323 $ (4,268,372) $ 13,874,365 $ (8,153,476) $ 167,536,840 Governmental activities depreciation expense for capital assets for the year ended June 30, 2024 was as follows:

General government $ 1,246,733
Police 825,765
Fire 752,173
Public works 3,287,596
Community services 439,527
Community development 7,466
Total $ 6,559,260

CITY OF LA MESA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-46-

6. CAPITAL ASSETS, (continued)
The following is a summary of capital assets for business-type activities:

Business-Type activities: Balance Prior Period Balance
June 30, 2023 Adjustment Additions Deletions June 30, 2024 Non-depreciable assets:

Construction in progress $ 2,551,680 $ (562,799) $ 55,368 $ (2,044,249) $ - Total non-depreciable assets 2,551,680 (562,799) 55,368 (2,044,249) - Depreciable assets:

Vehicles and equipment 2,280,839 (78,659) - - 2,202,180 Infrastructure 55,891,233 45,820 2,044,249 - 57,981,302 Right-to-use asset - subscription 219,986 - - (62,630) 157,356 Total depreciable assets, at cost 58,392,058 (32,839) 2,044,249 (62,630) 60,340,838 Accumulated Depreciation:

Vehicles and equipment (1,422,968) 246,096 (150,117) - (1,326,989) Infrastructure (21,235,220) (12,188) (719,126) - (21,966,534) Right-to-use asset - subscription (52,249) - (49,649) 14,876 (87,022) Total accumulated depreciation (22,710,437) 233,908 (918,892) 14,876 (23,380,545) Total depreciable assets, net 35,681,621 201,069 1,125,357 (47,754) 36,960,293 Total business-type activities $ 38,233,301 $ (361,730) $ 1,180,725 $ (2,092,003) $ 36,960,293 Business-type activities depreciation expense of $918,892 was charged to the Wastewater fund for the year ended June 30, 2024.

The fund financial statements do not present general government capital assets, but capital assets are shown in the Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position.

CITY OF LA MESA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-47-

7. LONG-TERM DEBT
A. Governmental Activities Long-Term Debt
The summary of changes in long-term debt for governmental activities for the year ended June 30, 2024 was as follows:

Balance Balance Due Within Due in More
June 30, 2023 Additions Deletions June 30, 2024 One Year Than One Year Bonds payable:
2006 Certificates of participation:

Series A 675,000 $ - $ (150,000) $ 525,000 $ 160,000 $ 365,000 $ Series B 1,035,000 - (235,000) 800,000 250,000 550,000
2016 General obligation refunding bonds 16,865,000 - (890,000) 15,975,000 945,000 15,030,000 Unamortized bond premium 895,920 - (63,995) 831,925 63,995 767,930 Total $ - 19,470,920 $ (1,338,995) $ 18,131,925 $ 1,418,995 $ 16,712,930 $ Classification
Bonds Payable
2006 Certificates of Participation, Series A and B
On July 27, 2006, the La Mesa Public Financing Authority (The Authority) issued Certificates of Participation, Series 2006A in the amount of $1,830,000 and Series 2006B in the amount of $3,170,000, bearing interest rates of 4.15%-6.32% with maturity dates from August 1, 2007 to 2027.

The purpose of the issuance was to provide funds to construct a building and related site improvements at the City of La Mesa's Civic Center, to acquire a municipal bond debt service reserve insurance policy and a municipal bond insurance policy for the certificates, and to pay the costs of issuance incurred in connection with the execution and delivery of the certificates. Interest is payable on February 1 and August 1 each year, commencing August 1, 2007.

The City has pledged future post office lease revenue to repay the 2006 Certificates of Participation Series A. Total principal and interest remaining on the Certificates of Participation Series A is $576,666 payable through 2027. Total principal and interest remaining on the Certificates of Participation Series B is $856,748 payable through 2027.

Whenever any event of default referred to in the lease happens and continues, the Trustee, as the assignee of the Authority, is authorized under the terms of Lease to exercise any and all remedies available pursuant to the law or granted pursuant to the Lease; provided, however, that notwithstanding anything therein 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 due or past due to be immediately due and payable. Neither the Authority nor its assignee shall have any right to reenter or re-let the leased premises except following a default under the lease. Following an event of default, the Trustee or its assignee of the Authority, may elect either to terminate the Lease and seek to collect damages from the City or to maintain the Lease in effect and seek to collect the Lease Payments as they become due. The lease further provides that so long as an event of default exists under the lease, the trustee may reenter the leased premises for the purpose of taking possession of any portion of the leased premises and to re-let the lease premises, and in addition, at its option, with or without such entry to terminate the lease as described therein.

CITY OF LA MESA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-48-

7. LONG-TERM DEBT, (continued)
A. Governmental Activities Long-Term Debt, (continued)
Bonds Payable, (continued)
2006 Certificates of Participation, Series A and B, continued The outstanding principal balances of Series A and B at June 30, 2024 were $525,000 and $800,000 respectively, for a combined balance of $1,325,000.

The annual debt service requirements for the Series A and B Certificates outstanding at June 30, 2024 were as follows:

Year Ending
June 30, Principal Interest Total
2025 160,000 $ 28,124 $ 188,124 $
2026 175,000 17,538 192,538
2027 190,000 6,004 196,004
Total $ 51,666 525,000 $ 576,666 $
Year Ending
June 30, Principal Interest Total
2025 250,000 $ 30,988 $ 280,988 $
2026 265,000 19,205 284,205
2027 285,000 6,555 291,555
Total $ 56,748 800,000 $ 856,748 $
2006 Certificates of Participation Series B
2006 Certificates of Participation Series A

CITY OF LA MESA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-49-

7. LONG-TERM DEBT, (continued)
A. Governmental Activities Long-Term Debt, (continued)
Bonds Payable, (continued)
2016 General Obligation Refunding Bonds
On November 30, 2016, the City issued $21,825,000 in 2016 General Obligation Refunding Bonds for the purpose of refunding the outstanding 2004 General Obligation Bonds, Series A and B. The bonds are general obligation bonds of the City, payable solely from ad valorem property taxes levied on behalf of the City and collected by the County of San Diego. The bonds mature annually each August 1, 2017 through 2036 in amounts ranging from $720,000 to $1,565,000. The bonds bear variable interest rates ranging from 2% to 5%, and are payable semi-annually each February 1 and August 1, commencing February 1, 2017.

In the event of a failure of the City to comply with any provision of the disclosure certificate, the holder or beneficial owner of the bonds may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the City to comply with its obligations under the disclosure certificate. A default under the disclosure certificate shall not be deemed and event of default under the indenture, and the sole remedy under this disclosure certificate in the event of any failure of the City to comply with the disclosure certificate shall be an action to compel performance.

No holder or beneficial owner of the bonds may institute such action, suit or proceeding to compel performance unless they shall have first delivered to the City satisfactory written evidence of their status as such, and a written notice of and request to cure such failure, and the City shall have refused to comply therewith within a reasonable time.

The annual requirements for the 2016 General Obligation Refunding Bonds outstanding at June 30, 2024 were as follows:

Year Ending
June 30, Principal Interest Total
2025 945,000 $ 639,825 $ 1,584,825 $
2026 995,000 591,325 1,586,325
2027 1,050,000 548,075 1,598,075
2028 1,095,000 510,537 1,605,537
2029 1,145,000 471,337 1,616,337
2030 - 2034 6,510,000 1,655,675 8,165,675
2035 - 2037 4,235,000 294,675 4,529,675
Total $ 4,711,449 15,975,000 $ 20,686,449 $
2016 General Obligation Refunding Bonds

CITY OF LA MESA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-50-

7. LONG-TERM DEBT, (continued)
B. Business-Type Activities Long-Term Debt
The summary of changes in long-term debt for business-type activities for the year ended June 30, 2024 was as follows:

Balance Balance Due Within Due in More
June 30, 2023 Additions Deletions June 30, 2024 One Year Than One Year Notes payable:

State Revolving Fund Loan $ 12,552,882 $ - $ (1,169,673) $ 11,383,209 $ 1,185,420 $ 10,197,789 Total $ 12,552,882 $ - $ (1,169,673) $ 11,383,209 $ 1,185,420 $ 10,197,789 State Revolving Fund Loan
On July 25, 2006, the City entered into an agreement to obtain a low interest federal pass-through loan from the State Water Resources Control Board which would allow the City to borrow up to $14,500,000 at 2.4% from January 7, 2006 through February 1, 2028 for sewer system improvements. An additional $5,000,000, $7,000,000, and $970,619 was approved for borrowing on November 3, 2015, July 7, 2020, and February 27, 2023, respectively. At June 30, 2024, the City had borrowed $22,317,101, of which $11,383,209 remains outstanding.

The annual debt service requirements for the State Water Fund Loan outstanding at June 30, 2024 were as follows:

Year Ending June 30, Principal Interest Total
2025 1,185,420 $ 184,820 $ 1,370,240 $
2026 1,207,671 162,569 1,370,240
2027 1,230,387 139,854 1,370,241
2028 1,253,577 116,664 1,370,241
2029 972,682 92,989 1,065,671
2030 - 2034 2,637,426 291,295 2,928,721
2035 - 2039 2,017,126 121,539 2,138,665
2040 - 2044 878,920 20,285 899,205
Total $ 1,130,015 11,383,209 $ 12,513,224 $
State Revolving Fund Loan

CITY OF LA MESA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-51-

8. FINANCED PURCHASE
The summary of changes in long-term financed purchases for governmental activities for the year ended June 30, 2024 was as follows:

Balance Balance Due Within Due in More
June 30, 2023 Additions Deletions June 30, 2024 One Year Than One Year Financed purchase payable
San Diego County Next Gen RCS - 2017 $ 421,496 - $ $ (136,651) $ 284,845 $ 140,464 $ 144,381 Total $ 421,496 $ - $ (136,651) $ 284,845 $ 140,464 $ 144,381 Classification
San Diego County Next Gen RCS - 2017
The San Diego-Imperial County Regional Communications System (RCS) is utilized by the Police, Fire and Public Works Departments for their radio communications. The current system has reached end of life, and the RCS has developed plans for a new “next generation system” to meet the region’s needs (NextGen RCS).

On July 12, 2016, the City of La Mesa was notified by San Diego County that a contract for the NextGen RCS system was awarded to Motorola Solutions for $70,065,207. The City of La Mesa’s share of this amount is $1,279,649. Our shared infrastructure obligation will be financed by the County of San Diego at an annual interest rate of 2.79% per year, for a period of ten years, with an annual payment of $148,411 beginning in FY 16-17 and continuing for 10 years until the debt is paid. The annual payments as of June 30, 2024 were as follows:

Year Ending
June 30, Principal Interest Total
2025 $ 7,947 140,464 $ 148,411 $
2026 144,381 4,028 148,411
Total $ 11,975 284,845 $ 296,822 $
San Diego County Next Gen RCS - 2017

CITY OF LA MESA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-52-

9. LEASE AND SUBSCRIPTION LIABILITY
A. Governmental Activities
The summary of changes in long-term lease and subscription liabilities for governmental activities for the year ended June 30, 2024 was as follows:

Balance Balance Due Within Due in More
June 30, 2023 Additions Deletions June 30, 2024 One Year Than One Year Lease liability 422,517 $ - $ (52,292) $ 370,225 $ 53,115 $ 317,110 $ Subscription liability 1,053,351 - (527,298) 526,053 415,082 110,971 Total $ 1,475,868 $ - $ (579,590) $ 896,278 $ 468,197 $ 428,081 Classification
Lease Liability
As of June 30, 2024, the City had 2 active leases. The leases have payments that range from $4,163 to $54,822 and interest rates that range from 1.2900% to 1.6000%. As of June 30, 2024, the total combined value of the lease liability is $370,225. The combined value of the right to use asset, as of June 30, 2024 of $530,443 with accumulated amortization of $163,324 is included within the right-to-use asset – equipment in note 6.

The annual payments as of June 30, 2024 were as follows:

Year Ending
June 30, Principal Interest Total
2025 53,115 $ 6,642 $ 59,757 $
2026 53,953 5,816 59,769
2027 52,368 4,986 57,354
2028 51,449 4,183 55,632
2029 52,272 3,373 55,645
2030 - 2031 107,068 5,126 112,194
Total $ 30,126 370,225 $ 400,351 $
Lease Liability

CITY OF LA MESA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-53-

9. LEASE AND SUBSCRIPTION LIABILITY (continued)
A. Governmental Activities (continued)
Subscription Liability
As of June 30, 2024, the City had 9 active subscriptions. The subscriptions have payments that range from $4,590 to $169,931 and interest rates that range from 2.0240% to 2.9270%. As of June 30, 2024, the total combined value of the subscription liability is $526,053. The combined value of the right to use asset, as of June 30, 2024 of $1,557,172 with accumulated amortization of $912,366 is included within right-to-use asset – subscription in note 6.

The annual payments as of June 30, 2024 were as follows:

Year Ending
June 30, Principal Interest Total
2025 415,082 $ 11,384 $ 426,466 $
2026 48,805 2,534 51,339
2027 41,106 1,483 42,589
2028 3,973 617 4,590
2029 4,089 500 4,589
2030 - 2031 12,998 768 13,766
Total $ 17,286 526,053 $ 543,339 $
Subscription liability
B. Business-Type Activities
The summary of changes in long-term lease and subscription liabilities for business-type activities for the year ended June 30, 2024 was as follows:

Balance Balance Due Within Due in More
June 30, 2023 Additions Deletions June 30, 2024 One Year Than One Year Subscription liability $ 162,316 $ - $ (110,996) $ 51,320 $ 51,320 $ - Classification
As of June 30, 2024, the City had 1 active subscription that is split with the General Fund. The subscription has annual payments of $115,340 and interest rates of 2.1840%. As of June 30, 2023, the total combined value of the subscription liability is $51,320. The combined value of the right to use asset, as of June 30, 2023 of $157,356 with accumulated amortization of $87,022 is included within right-to-use asset – subscription in note 6.

The annual payments as of June 30, 2024 were as follows:

Year Ending
June 30, Principal Interest Total
2025 51,320 $ 1,121 $ 52,441 $
Total $ 1,121 51,320 $ 52,441 $
Subscription liability

CITY OF LA MESA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-54-

10. COMPENSATED ABSENCES
The summary of changes in compensated absences for governmental activities for the year ended June 30, 2024 was as follows:

Balance Balance Due Within Due in More
June 30, 2023 Additions Deletions June 30, 2024 One Year Than One Year $ 4,653,062 $ - $ (34,390) $ 4,618,672 $ 2,362,230 $ 2,256,442 Classification
The funds to be used to liquidate this liability include the General Fund, Housing Rehabilitation, Community Development Block Grant, Downtown Parking, Wastewater, Environmental Services, Workers Compensation Fund, Liability Risk Financing Fund and the Low-Moderate Housing Successor Fund.

11. OTHER POST– EMPLOYMENT BENEFITS
Plan Description
The City provides the minimum required employer contribution under the CalPERS Health Plan for eligible retirees and surviving spouses in receipt of a pension benefit from CaIPERS. An employee is eligible for this employer contribution provided they are vested in their CalPERS pension benefit and commence payment of their pension benefit within 60 days of retirement with the City. Vesting requires at least 5 years of CalPERS total service. The surviving spouse of an eligible retiree who elected spouse coverage under CalPERS is eligible for the employer contribution upon the death of the retiree.

The scheduled minimum required employer contributions for each eligible retiree under the CalPERS Health Plan are $157 per month per employee in 2024. The City does not issue a financial report for the plan. A separate financial report is not prepared for the Plan.

Employees Covered
As of the July 1, 2023 actuarial valuation, the following current and former employees were covered by the benefit terms under the Plan:

Active employees 251
Inactive employees or beneficiaries currently receiving benefits 148 Inactive employees entitled to, but not yet receiving benefits - Total 399

CITY OF LA MESA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-55-

11. OTHER POST– EMPLOYMENT BENEFITS, (continued)
Contributions
By unanimous vote of the City Council on May 12, 2009, the City adopted pre-funding through the California Employers' Retiree Benefit Trust (CERBT), a GASB eligible trust. The CERBT has an investment policy with an expected long-term rate of return equal to approximately 6.00% for employers fully funding the annual required contribution each year. For the fiscal year ended June 30, 2024, the City’s cash contributions were $1,029,200 in payments to the trust.

Net OPEB Liability
The City’s net OPEB liability was measured as of June 30, 2023 based on the following actuarial methods and assumptions:

Actuarial Assumptions June 30, 2023 Measurement Date
Actuarial Valuation Date July 1, 2023
Actuarial cost method Entry age normal
Discount Rate 6.40%
General Inflation 2.50%
Mortality Society of Actuaries (SOA) Pub-2010 Continuing Survivor Headcount Weighted Mortality Table fully
generational using Scale MP-2021.

Retirement, Disability,
Termination
According to the rates under the 2017 experience
study for the CalPERS Pension plan.

Salary increases 2.80%
Medical Trend 8.0% for 2024, decreasing to an ultimate rate of

4.5% in 2030 and later years
Healthcare Participation 50% of eligible active employees are assumed to elect medical coverage at retirement.

CITY OF LA MESA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-56-

11. OTHER POST– EMPLOYMENT BENEFITS, (continued)
Net OPEB Liability (continued)
The long-term expected rate of return on OPEB plan investments was determined using a building – block method in which expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

Asset Class Component Target Allocation
Long-Term
Expected Real
Rate of Return
Global equity 49% N/A
Global debt securities 23% N/A
Inflation assets 5% N/A
Commodities 3% N/A
REITs 20% N/A
Total 100%
Discount Rate
A discount rate of 6.40% was used in the valuation. This discount rate assumes the City continues to fully fund for its retiree health benefits through the CERBT under its investment allocation strategy.

Changes in the OPEB Liability
The changes in the net OPEB liability for the Plan are as follows:
(a) (b) (a) - (b) = (c)
Total OPEB
Liability
Plan
Fiduciary
Net Position
Net OPEB
Liability
Balance at June 30, 2022 (measurement date) 7,398,897 $ 5,723,161 $ 1,675,736 $ Changes recognized for the measurement period:

Service cost 220,710 - 220,710
Interest 441,639 - 441,639
Differences between expected and
actual experience 381,603 - 381,603
Changes of assumptions (543,748) - (543,748)
Contributions – employer - 1,021,725 (1,021,725)
Net investment income - 399,722 (399,722)
Benefit payments (525,553) (525,553) -
Administrative expense - (1,751) 1,751
Net changes (25,349) 894,143 (919,492)
Balance at June 30, 2023 (measurement date) $ 6,617,304 7,373,548 $ 756,244 $

CITY OF LA MESA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-57-

11. OTHER POST– EMPLOYMENT BENEFITS, (continued)
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following presents the net OPEB liability of the City if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2023:
1% Decrease
(5.40%)
Current Discount
Rate (6.40%)
1% Increase
(7.40%)
Net OPEB Liability/
(Asset) $ 756,244 1,613,663 $ 42,850 $
Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trend Rates The following presents the net OPEB liability of the City if it were calculated using health care cost trend rates that are one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2023:
1% Decrease
Current
Healthcare Cost
Trend Rates 1% Increase
Net OPEB Liability/
(Asset) $ 756,244 (25,206) $ 1,716,608 $
OPEB Plan Fiduciary Net Position
CalPERS issues a publicly available CERBT financial report that may be obtained from the CalPERS’ website at www.calpers.ca.gov.

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.

CITY OF LA MESA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-58-

11. OTHER POST– EMPLOYMENT BENEFITS, (continued)
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB A complete breakdown of the OPEB expense is as follows:

Service cost 220,710 $
Interest on total OPEB liability 441,639
Projected earnings on OPEB plan investments (358,006)
OPEB plan administrative expense 1,751
Current period recognition of deferred outflows (inflows) of resources:

Differences between expected and actual experience in
measurement of the total OPEB liability 37,189
Changes of assumptions (18,618)
Differences between projected and actual earnings on OPEB plan investments 96,594
Annual OPEB expense (credit) 421,259 $
For the fiscal year ended June 30, 2024, the City recognized OPEB expense of $421,259. As of fiscal year ended June 30, 2024, the City reported deferred inflows and outflows of resources related to OPEB from the following sources:

Deferred Outflows
of Resources
Deferred Inflows of
Resources
Net difference between projected and actual
earnings on OPEB plan investments 408,962 $ - $
Changes of assumptions 554,540 (494,316)
Difference between expected and actuarial experience 714,470 (901,035) Contributions to OPEB plan subsequent to the measurement date 1,029,200 - Total $ (1,395,351) 2,707,172 $
Contributions subsequent to the measurement date of $1,029,200, reported as deferred outflows of resources will be recognized as a reduction of the net OPEB liability in the upcoming fiscal year. Other amounts reported as deferred outflows or inflows of resources related to OPEB will be recognized as expense as follows:

Fiscal Year
Ended June 30
Deferred
Outflows/(Inflows)
of Resources
2025 44,222 $
2026 18,147
2027 207,979
2028 (57,330)
2029 (48,988)
Thereafter 118,591
$ 282,621

CITY OF LA MESA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-59-

12. OTHER REQUIRED DISCLOSURES
Generally accepted accounting principles require disclosure of certain information concerning unrestricted net position (deficit) and fund balance (deficit). At June 30, 2024, the following funds had the following deficit fund balances:

Governmental Funds
Miscellaneous Grants (1,081,714) $
Non-Major:

Transportation Improvement (730,876)
Environmental Services (159,726)
Public Safety Grants (335,901)
CIP Grants (7,805)
Transportation Fund (78,464)
2006 Certificates of Participation (8,097)
Storm Drains (411,276)
Transportation CIP (35,768)
The negative fund balance amount represents expenditures incurred before June 30, 2024, which as of the financial statement date and accrual period, were not yet reimbursed.

13. RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft or damage to, and destruction of, assets; errors and omissions; injuries to employees; and natural disasters. The City manages these risks through a combination of self-insurance, participation in risk-sharing pools, and the purchase of commercial insurance.

Workers’ Compensation
The City is self-insured for workers’ compensation claims and accounts for these activities in an internal service fund—the Workers’ Compensation Fund. Under the current program, the City retains risk for individual claims up to $250,000 per occurrence, including catastrophic illness. Claims in excess of this retention are covered through membership in the Public Entity Risk Management Authority (PERMA), which provides pooled risk-sharing coverage up to statutory limits for workers' compensation and $5,000,000 per occurrence for employer’s liability.

All City departments participate in the program and are charged based on estimated historical cost data and actuarial estimates of current and incurred-but-not-reported (IBNR) liabilities. Contributions are adjusted as necessary to ensure the fund is adequately financed. There have been no settlements in the past three fiscal years that have exceeded coverage limits.

General Liability
The City also self-insures for general liability exposures and participates in PERMA’s pooled liability program. The City retains a Self-Insured Retention (SIR) of $50,000 per claim. PERMA provides pooled coverage from the SIR up to $1,000,000, and excess commercial liability insurance extends the total coverage limit to $50,000,000 per occurrence.

CITY OF LA MESA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-60-

13. RISK MANAGEMENT, (continued)
Member contributions to the pool are based on actuarial estimates of the ultimate cost of claims and are subject to retrospective adjustment based on actual loss experience. The City accounts for this activity in an internal service fund.

Property
The City participates in PERMA’s All Risks Property Protection Program, which is underwritten by a commercial insurer. Coverage includes real and personal property, and premiums are based on reported insured values and selected deductible levels. Unlike the liability program, these premiums are not subject to retroactive adjustment.

The claim liability of $6,220,960 reported in the Government-Wide Statement of Net Position in accordance with generally accepted accounting principles, which require a liability for claims be reported if information prior to 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 loss can be reasonably estimated.

Changes in claims liability amount for fiscal years 2022, 2023 and 2024 were:

Beginning of
Fiscal Year
Liability
Current Year Claims
and Change in
Estimates
Claims
Payments
Balance at
Fiscal Year End
2021 - 2022 4,828,978 $ 1,543,974 $ $ (425,018) 5,947,934 $ 2022 - 2023 5,947,934 (614,232) (136,382) 5,197,320
2023 - 2024 5,197,320 1,083,307 (59,667) 6,220,960

14. DEFINED BENEFIT PENSION PLANS
A summary of pension plans and related deferred inflows and outflows of resources which reconciles to the Statement of Net Position is as follows:

PERS - Misc PERS - Safety PARS Total
Net Pension Liability / (Asset) 43, $ 81,688,176 294,745 $ 12,019 $ 124,994,940 $ Deferred Outflows - Pension Related 11,135,420 24,221,843 210,507 35,567,770 Deferred Inflows - Pension Related 187,510 1,283,625 - 1,471,135 A. General Information about the Pension Plans
Plan Description
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, 2022 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.

CITY OF LA MESA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-61-

14. DEFINED BENEFIT PENSION PLANS, (continued)
A. General Information about the Pension Plans, (continued) 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.

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 Plan’s provisions and benefits in effect at June 30, 2024 are summarized as follows:

On or after
January 1, 2011
Prior to And prior to On or after
Hire Date January 1, 2011 January 1, 2013 January 1, 2013 Benefit formula 3.0% @ 60 2.5% @ 55 2.0% @ 62
Benefit vesting schedule 5 years of service 5 years of service 5 years of service Benefit payments monthly for life monthly for life monthly for life Retirement age 50-60 50-55 52-62
Required employer contribution rates 11.260% 11.260% 11.260% On or after
January 1, 2011
Prior to And prior to On or after
Hire Date January 1, 2011 January 1, 2013 January 1, 2013 Benefit formula 3.0% @ 50 3.0% @ 55 2.7% @ 57
Benefit vesting schedule 5 years of service 5 years of service 5 years of service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 50 50
Required employer contribution rates 19.800% 19.800% 19.800% Miscellaneous
Safety

CITY OF LA MESA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-62-

14. DEFINED BENEFIT PENSION PLANS, (continued)
A. General Information about the Pension Plans, (continued) Employees Covered
At June 30, 2022, (valuation date) the following employees were covered by the benefit terms:

Miscellaneous Safety
Inactive employees or beneficiaries
currently receiving benefits 281 212
Inactive employees entitled to but
not yet receiving benefits 222 73
Active employees 146 106
Total 649 391
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. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions. Employer Contributions to the Plan for the fiscal year ended June 30, 2024 for the miscellaneous and safety plans were $5,202,504 and $8,362,610 respectively.

B. Net Pension Liability
The City’s net pension liability for each Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of each of the Plans is measured as of June 30, 2023, using an annual actuarial valuation as of June 30, 2022 rolled forward to June 30, 2023 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is as follows.

CITY OF LA MESA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-63-

14. DEFINED BENEFIT PENSION PLANS, (continued)
B. Net Pension Liability, (continued)
Actuarial Methods and Assumptions Used to Determine Total Pension Liability The June 30, 2022 valuation was rolled forward to determine the June 30, 2023 total pension liability, based on the following actuarial methods and assumptions:

Miscellaneous Safety
Valuation Date June 30, 2022 June 30, 2022
Measurement Date June 30, 2023 June 30, 2023
Actuarial Cost Method Entry Age Normal Entry Age Normal Asset Valuation Method Fair Value of Assets Fair Value of Assets Actuarial Assumptions
Discount Rate 6.90% 6.90%
Inflation 2.30% 2.30%
Salary Increases Varies by Entry Age and Service Varies by Entry Age and Service Mortality Rate Table (1) Derived using CALPERS' Derived using CALPERS' membership data for all funds membership data for all funds Post Retirement Benefit Increase
(1) The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study for the period from 2001 to 2019. Pre-retirement and Post-retirement mortality rates include generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries.

For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from November 2021 that can be found on the CalPERS website.

The lesser of contract COLA or

2.30% until Purchasing Power
Protection Allowance floor on
purchasing power applies, 2.30%
thereafter.

The lesser of contract COLA or

2.30% until Purchasing Power
Protection Allowance floor on
purchasing power applies, 2.30%
thereafter.

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

In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations. Using historical 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 rate of return was then adjusted to account for assumed administrative expenses of 10 Basis points.

CITY OF LA MESA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-64-

14. DEFINED BENEFIT PENSION PLANS, (continued)
B. Net Pension Liability, (continued)
Long-term Expected Rate of Return (continued)
The expected real rates of return by asset class are as follows:

Asset Class1
Assumed Asset
Allocation Real Return 1,2
Global equity - cap-weighted 30.00% 4.54%
Global equity - non-cap-weighted 12.00% 3.85%
Private equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed Securities 5.00% 0.50%
Investment grade corporates 10.00% 1.56%
High yield 5.00% 2.27%
Emerging market debt 5.00% 2.48%
Private debt 5.00% 3.57%
Real assets 15.00% 3.21%
Leverage (5.00%) (0.59%)
2 Figures are based on the 2021 Asset Liability Management study. 1 An expected inflation of 2.30% used for this period.

Change of Assumptions
There were no assumption changes in 2023. Effective with the June 30, 2021 valuation date (June 30, 2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. In addition, demographic assumptions and the price inflation assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates June 30, 2017 through June 30, 2021, 7.65% for measurement dates June 30, 2015 through June 30, 2016, and 7.50% for measurement date June 30, 2014.

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

CITY OF LA MESA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-65-

14. DEFINED BENEFIT PENSION PLANS, (continued)
B. Net Pension Liability, (continued)
Subsequent Events
There were no subsequent events that would materially affect the results presented in this disclosure.

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

Investments are reported at fair value.

Remainder of this page intentionally left blank.

CITY OF LA MESA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-66-

14. DEFINED BENEFIT PENSION PLANS, (continued)
C. Changes in Net Pension Liability
The following tables show the changes in net pension liability recognized over the measurement period for each plan.

Miscellaneous Plan:

Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
(a) (b) (c)=(a)-(b)
Balance at: 6/30/2022 (VD) $ 89,807,420 131,304,523 $ 41,497,103 $ Changes Recognized for the
Measurement Period
• Service Cost 2,084,057 - 2,084,057
• Interest on the Total Pension
Liability 9,026,635 - 9,026,635
• Changes of Benefit Terms 181,935 - 181,935
• Differences between Expected and
Actual Experience 2,075,153 - 2,075,153
• Changes of Assumptions - - -
• Net plan to plan resource movement - -
• Contributions from the Employer - 5,146,491 (5,146,491) • Contributions from the Employee - 876,819 (876,819)
• Net Investment Income - 5,612,868 (5,612,868)
• Benefit Payments, including
Refunds of Employee Contributions (7,565,710) (7,565,710) - • Administrative Expense - (66,040) 66,040
• Other miscellaneous expense - - -
Net Change during 2022-23 4,004,428 5,802,070 1,797,642 Balance at: 6/30/2023 (MD) $ 93,811,848 137,106,593 $ 43,294,745 $ Increases (Decreases)
Valuation Date (VD), Measurement Date (MD).

CITY OF LA MESA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-67-

14. DEFINED BENEFIT PENSION PLANS, (continued)
C. Changes in Net Pension Liability, (continued)
Safety Plan:

Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
(a) (b) (c)=(a)-(b)
Balance at: 6/30/2022 (VD) $ 141,226,405 214,082,807 $ 72,856,402 $ Changes Recognized for the
Measurement Period
• Service Cost 4,029,923 - 4,029,923
• Interest on the Total Pension Liability 15,029,104 - 15,029,104 • Changes of Benefit Terms 110,883 - 110,883
• Differences between Expected and
Actual Experience 7,782,892 - 7,782,892
• Changes of Assumptions - - -
• Net plan to plan resource movement - - -
• Contributions from the Employer - 8,027,346 (8,027,346) • Contributions from the Employee - 1,426,893 (1,426,893) • Net Investment Income - 8,770,640 (8,770,640)
• Benefit Payments, including Refunds
of Employee Contributions (12,356,890) (12,356,890) -
• Administrative Expense - (103,851) 103,851
• Other miscellaneous expense - - -
Net Change during 2022-23 5,764,138 14,595,912 8,831,774 Balance at: 6/30/2023 (MD) $ 146,990,543 228,678,719 $ 81,688,176 $ Increases (Decreases)
Valuation Date (VD), Measurement Date (MD).

Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the Plan as of the measurement date, calculated using the discount rate of 6.9 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 (5.9 percent) or 1 percentage-point higher (7.9 percent) than the current rate:

Discount Rate - 1% Current Discount Discount Rate + 1%
(5.90%) Rate (6.90%) (7.90%)
Miscellaneous Plan's
Net Pension Liability 60,038,752 $ 43,294,745 $ 29,377,532 $ Safety Plan's Net
Pension Liability 112,894,111 81,688,176 56,185,043

CITY OF LA MESA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-68-

14. DEFINED BENEFIT PENSION PLANS, (continued)
C. Changes in Net Pension Liability, (continued)
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
D. Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions
As of the start of the measurement period (July 1, 2022), the net pension liability for the Miscellaneous and Safety Plans is $41,497,103 and $72,856,402, respectively.

For the measurement period ending June 30, 2023 (the measurement date), the City incurred a pension expense of $7,212,592 and $13,407,908 for the Miscellaneous and Safety Plans, respectively. A complete breakdown of the pension expense is as follows:

CITY OF LA MESA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-69-

14. DEFINED BENEFIT PENSION PLANS, (continued)
D. Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions, (continued)
Miscellaneous Plan:

Description Amount
Service Cost $ 2,084,057
Interest on the Total Pension Liability 9,026,635
Changes of Benefit Terms 181,935
Recognized Differences between Expected and Actual Experience 656,909 Recognized Changes in Assumptions 1,413,935
Employee Contributions (876,819)
Projected Earnings on Pension Plan Investments (6,133,553) Recognized Differences between Projected and Actual Earnings on Plan Investments 793,453 Administrative Expense 66,040
Total Pension Expense $ 7,212,592
Safety Plan:

Description Amount
Service Cost $ 4,029,923
Interest on the Total Pension Liability 15,029,104
Changes of Benefit Terms 110,883
Recognized Differences between Expected and Actual Experience 1,776,666 Recognized Changes in Assumptions 2,120,864
Employee Contributions (1,426,893)
Projected Earnings on Pension Plan Investments (9,637,632) Recognized Differences between Projected and Actual Earnings on Plan Investments 1,301,142 Administrative Expense 103,851
Total Pension Expense $ 13,407,908

CITY OF LA MESA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-70-

14. DEFINED BENEFIT PENSION PLANS, (continued)
D. Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions, (continued)
As of June 30, 2024, the City has deferred outflows and deferred inflows of resources related to pensions as follows:

Miscellaneous Plan:

Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between Expected and
Actual Experience 1,210,506 $ 187,510 $
Changes of Assumptions 565,574 -
Net Difference between Projected and
Actual Earnings on Pension Plan
Investments 4,156,836 -
Pension Contributions Subsequent to
Measurement Date 5,202,504 -
Total $ 187,510 11,135,420 $
Safety Plan:

Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between Expected and
Actual Experience 5,815,813 $ 1,283,625 $
Changes of Assumptions 3,393,383 -
Net Difference between Projected and
Actual Earnings on Pension Plan
Investments 6,650,037 -
Pension Contributions Subsequent to
Measurement Date 8,362,610 -
Total $ 1,283,625 24,221,843 $
These amounts above are net of outflows and inflows recognized in the 2022-2023 measurement period expense. Contributions subsequent to the measurement date of $5,202,504 and $8,362,610 for the Miscellaneous and Safety Plans respectively, reported as deferred outflows of resources will be recognized as a reduction of the net pension liability in the 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:

CITY OF LA MESA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-71-

14. DEFINED BENEFIT PENSION PLANS, (continued)
D. Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions, (continued)
Miscellaneous Plan:

Measurement Period
Deferred
Outflows/(Inflows) of
Ended June 30: Resources
2024 1,954,609 $
2025 731,766
2026 2,954,894
2027 104,137
2028 -
Thereafter -
Safety Plan:

Measurement Period
Deferred
Outflows/(Inflows) of
Ended June 30: Resources
2024 4,728,941 $
2025 3,528,556
2026 6,144,711
2027 173,400
2028 -
Thereafter -
E. Payable to the Pension Plan
At June 30, 2024, the City of La Mesa reported a payable of $0 for the outstanding amount of contributions to the pension plans required for the year ended June 30, 2024.

15. RETIREMENT ENHANCEMENT PLAN
A. PARS Retirement Enhancement Plan
Plan Description
The plan is an enhanced agent pension plan administered, an agent multiple employer plan, by Public Agency Retirement Services (PARS). The plan enhancement was designed to provide a retirement factor of 3.0% at 60. At the time the plan was implemented, the CalPERS benefit only extended to 2.0% at 55. The plan was closed on January 13, 2006 when employees voted to change to the 3.0% at 60 benefit formula through CalPERS. At this time the nature of the plan changed, and the participants were divided into three groups, those that were already retired and receiving the defined benefit of the enhancement plan, those that are currently inactive and will not receive a defined benefit payment but do have their contributions set aside and available at retirement, and one active employee.

CITY OF LA MESA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-72-

15. RETIREMENT ENHANCEMENT PLAN, (continued)
A. PARS Retirement Enhancement Plan, (continued)
Benefits Provided
The benefit provided by PARS is equal to a percentage of the highest pay multiplied by years of service, with the percentage varying by retirement age based on a modified 3.0% target offset by CalPERS 3.0% at 60 formula for current actives. There are no active participants and twenty-one former employees who retired with PARS or are currently considered inactive. Benefits are increased by a 2% annual COLA after retirement. The plan has been closed to new entrants since January 7, 2006. Employees that elected to change over to the CalPERS 3.0% at 60 formula will receive their contributions made to the plan in a lump sum payment upon retirement.

The Plan’s provisions and benefits in effect at June 30, 2023, (measurement date) are summarized as follows:

Group I Group II Group III
Terminate before Inactive employees Active
Hire Date January 13, 2006 Not yet retired Employee
Benefit formula Modified 3.0% @ 60 Closed Plan Modified 3.0% @ 60 Benefit vesting schedule City CalPERS Service Vested City CalPERS Service Benefit payments
monthly for life-offset by
CalPERS Benefit at Retirement Accumulated Contributions monthly for life-offset by
CalPERS Benefit at Retirement
Retirement age 55-63 55-60 55-60
Monthly benefits, as a % of eligible compensation
combined with CalPERS 2.5%-3.0% N/A 2.7%-3.0%
Required employee contribution rates N/A N/A 1.5%
Required employer contribution rates Closed group-Normal Cost Closed Program Closed group-Normal Cost Employees Covered
At January 1, 2023 (valuation date), the following employees were covered by the benefit terms:

PARS
Inactive employees or beneficiaries
currently receiving benefits 19
Inactive employees entitled to but
not yet receiving benefits 2
Active employees -
Total 21
Contributions
The annual contribution for the PARS plan is determined on an actuarial basis. For the measurement period ended June 30, 2023 (the measurement date), the active employee contribution rate for the plan is 1.5% of annual pay. There are, however, no longer any active employees under this plan. The employer contributes an amount determined by an actuarial study performed at least every two years as long as the Plan exists. This is a closed plan.

CITY OF LA MESA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-73-

15. RETIREMENT ENHANCEMENT PLAN, (continued)
A. PARS Retirement Enhancement Plan, (continued)
Contributions (continued)
The City’s net pension liability for the Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of the Plan is measured as of June 30, 2023, using an annual actuarial valuation as of January 1, 2023 rolled forward to June 30, 2023 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is as follows.

B. Net Pension Liability
Actuarial Methods and Assumptions Used to Determine Total Pension Liability For the measurement period ended June 30, 2023 (the measurement date), the total pension liability was determined by rolling forward the January 1, 2023 total pension liability. The June 30, 2022 and June 30, 2023 total pension liabilities were based on the following actuarial methods and assumptions:

PARS
Valuation Date January 1, 2023
Measurement Date June 30, 2023
Actuarial Cost Method Entry Age Normal, Level % of Pay
Asset Valuation Method Market value of assets
Actuarial Assumptions
Discount Rate 5.50% at June 30, 2023, and June 30, 2022 Inflation 2.50%
Mortality Rate Table Mortality projected fully generational with Scale MP-2021 Discount Rate
The discount rate used to measure the total pension liability was 5.50%. The City chose a Moderate Risk Investment Strategy when setting up this plan. The current 5.50% discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long-term expected discount rate of 5.50% is applied to the plan. Administrative expenses are expected to be 0.6% of assets, this is added to the discount rate bringing the Expected Long-Term Net Rate of Return to

5.50%.

According to Paragraph 30 of Statement 68, the long-term discount rate should be determined without reduction for pension plan administrative expense. The 5.50% investment return assumption used in this accounting valuation is net of administrative expenses. Administrative expenses are assumed to be 0.6% of assets. An investment return excluding administrative expenses would have been 6.56%. Using this lower discount rate has resulted in a slightly higher total pension liability and net pension liability. This difference was deemed immaterial to the plan.

Refer to the sensitivity of the net pension liability to changes in the discount rate section of this note, which provides information on the sensitivity of the net pension liability to changes in the discount rate.

CITY OF LA MESA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-74-

15. RETIREMENT ENHANCEMENT PLAN, (continued)
B. Net Pension Liability, (continued)
Discount Rate (continued)
The following table reflects long-term expected real rate of return by asset class. Approximate expected real rates of return provided by Foster & Foster’s 2021 capital market assumptions which are based on a survey of various investment advisors’ expected asset class returns. These geometric rates of return are net of administrative expenses.

PARS Moderate Investment Policy
Target
Allocation
PARS -
Moderate
Expected
Real
Return
Global Equity 50.00% 4.56%
Fixed Income 45.00% 0.78%
Cash 5.00% -0.50%
Assumed Long-Term Rate of Inflation 2.50%
Expected Long-Tern Net Rate of Return, Rounded 5.50%
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 the City’s GASB 68 Employer Accounting Information report. 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 each plan.

Investments are reported at fair value.

CITY OF LA MESA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-75-

15. RETIREMENT ENHANCEMENT PLAN, (continued)
C. Changes in the Net Pension Liability
The following table shows the changes in net pension liability recognized over the measurement period.

Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
(a) (b) (c)=(a)-(b)
Balance at 6/30/2022 (MD) $ 2,342,652 2,352,678 $ 10,026 $ Changes Recognized for the
Measurement Period
• Interest on the Total Pension
Liability 123,635 123,635
• Differences between Expected and
Actual Experience 74,745 74,745
• Changes of Assumptions 12,585 12,585
• Contributions from the Employer - 80,000 (80,000)
• Contributions from the Employee - - -
• Net Investment Income - 137,377 (137,377)
• Benefit Payments, including
Refunds of Employee Contributions. (209,516) (209,516) - • Administrative Expenses - (8,405) 8,405
Net Change (544) 1,449 1,993
Balance at: 6/30/2023 (MD) $ 2,342,108 2,354,127 $ 12,019 $ Increases (Decreases)
Measurement Date (MD)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the Plan as of the measurement date, calculated using the discount rate of 5.50 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 (4.50 percent) or 1 percentagepoint higher (6.50 percent) than the current rate:

Discount Rate - 1% Current Discount Discount Rate + 1%
(4.50%) Rate (5.50%) (6.50%)
PARS Plan's Net Pension
Liability/(Asset) 198,858 $ 12,019 $ (151,641) $

CITY OF LA MESA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-76-

15. RETIREMENT ENHANCEMENT PLAN, (continued)
C. Changes in the Net Pension Liability, (continued)
Subsequent Events
There were no subsequent events that would materially affect the results presented in this disclosure.

Recognition of Gains and Losses
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 average expected remaining service lives of all
members that are provided with benefits
(active, inactive and retired) as of the
beginning of the measurement period
The expected average remaining service lifetime (EARSL) is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired).

The EARSL for the Plan for the measurement period is 0 years, which was obtained by dividing the total service years of 0 (the sum of the remaining service lifetimes of the active employee) by 21 (the total number of participants: active, inactive, and retired). The reason the EARSL is 0 is that this is a closed plan and there are no active employees with no remaining service life. The last active employee left the City in fiscal year 2018. There are 21 total covered employees. Inactive employees and retirees have remaining service lifetimes equal to 0. Total future service is based on the members’ probability of decrementing due to an event other than receiving a cash refund.

As of the start of the measurement period (July 1, 2022), the net pension liability is $10,026.

For the measurement period ending June 30, 2023 (the measurement date), the City of La Mesa incurred pension expense of $132,029 for the Plan. A complete breakdown of the pension income is as follows:

CITY OF LA MESA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-77-

15. RETIREMENT ENHANCEMENT PLAN, (continued)
D. Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions
Description Amount
Interest on the Total Pension Liability 123,635 $
Projected Earnings on Investments (124,620)
Administrative Expenses 8,405
Experience 74,745
Assumptions 12,585
Asset returns 37,279
Total Pension Expense (Income) $ 132,029
As of June 30, 2024, the City has deferred outflows and deferred inflows of resources related to pensions as follows:

Deferred Outflows Deferred Inflows
of Resources of Resources
Net Difference between Projected and
Actual Earnings on Pension Plan
Investments 155,507 $ - $
Pension Contributions Subsequent to
Measurement Date 55,000 -
Total $ - 210,507 $
These amounts above are net of outflows and inflows recognized in the 2022-2023 measurement period expense. Contributions subsequent to the measurement date of $55,000 reported as deferred outflows of resources will be recognized as a reduction of the net pension liability in the 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:

Measurement Period
Deferred
Outflows/(Inflows) of
Ended June 30: Resources
2024 (35,919) $
2025 (28,412)
2026 (93,729)
2027 2,553
2028 -
Thereafter -
E. Payable to the Pension Plan
At June 30, 2024, the City of La Mesa reported a payable of $0 for the outstanding amount of contributions to the pension plan required for the year ended June 30, 2024.

CITY OF LA MESA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-78-

16. COMMITMENTS AND CONTINGENCIES
Lawsuits in the Normal Course of Business
The City is presently involved in certain matters of litigation that have arisen in the normal course of conducting City business. City management believes, based upon consultation with the City Attorney, that these cases, in the aggregate, are not expected to result in a material adverse financial impact on the City. Additionally, City management believes that the City's insurance programs are sufficient to cover any potential losses should an unfavorable outcome materialize.

17. RELATED PARTY TRANSACTIONS
On November 25, 2008, the City entered into a Purchase and Sale Agreement with the Redevelopment Agency to sell certain real property located at 8181 Allison Avenue, La Mesa, California at the appraised value of $8,350,000 for the purposes of increasing, improving and preserving the community's supply of housing available at affordable cost to persons and families of low or moderate income. The Agency made an initial payment of $1,000,000 at closing and issued a promissory note to the City for $7,350,000.

The outstanding balance was transferred from the Agency to the Successor Agency on February 1, 2012 as part of the dissolution of redevelopment. At June 30, 2024, the outstanding balance of the advances from the City to the Successor Agency relating to this transaction was $4,707,657.

On August 23, 2012, the City of La Mesa acting as Successor Agency filed the Recognized Obligation Payment Schedule (ROPS III) for the January through June 2013 time period. As it had been for all previous ROPS, included on the ROPS III was the outstanding loan balance ($5,300,000 at June 30, 2012) for the Police Station Land Sale between the General Fund and the Successor Agency and the related annual debt service ($750,000 per year). The Department of Finance denied the debt on the ROPS III as an enforceable obligation, despite approving it on all previous ROPS, stating:

HSC section 34171 (d) defines enforceable obligations. Based on our review and application of the law, Item No.5- a loan agreement between the City of La Mesa (City) and the Agency in the amount of $5.3 million is not an enforceable obligation. The loan was used to purchase the land under the police station. HSC section 34171 (d) (2) states that agreements between the City and the Agency are not enforceable.

The City requested a Meet and Confer with the Department of Finance, which was held on November 21, 2012. On December 19, 2012, the City received a determination from the Department of Finance that upheld the original determination to deny both the outstanding loan balance and related annual debt service as enforceable obligations. However, on December 7, 2017, the Oversight Board for the Successor Agency approved a repayment schedule in accordance with the maximum repayment amounts specified in the Dissolution Law including H&S Code Section 34191.4(b)(3) until the loan is repaid in full. On January 23, 2018, the Department of Finance issued a Determination Letter, approving the loan balance of $5,300,000. Repayments of this loan will begin after other Deferrals listed on the ROPS are repaid.

CITY OF LA MESA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-79-

18. SUCCESSOR AGENCY
On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 (“the Bill”) that provides for the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the City of La Mesa that previously had reported a redevelopment agency within the reporting entity of the City as a blended component unit.

In accordance with the Bill, on January 10, 2012, the City Council elected to become the Successor Agency for the former redevelopment agency in accordance with the Bill as part of City resolution. The Successor Agency is subject to the control of the oversight board and remaining assets can only be used to pay enforceable obligations in existence at the date of dissolution of the redevelopment agency (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments).

In future fiscal years, successor agencies will only be allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of the former redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated.

19. SUCCESSOR AGENCY LONG-TERM DEBT

In accordance with the provisions of the Bill and the California Supreme Court’s decision to uphold the Bill, the obligations of the former redevelopment agency became vested with the funds established for the successor agency upon the date of dissolution, February 1, 2012. Former tax increment revenues pledged to fund the debts of the former redevelopment agency will be distributed to the Successor Agency subject to the reapportionment of such revenues as provided by the Bill.

The debt of the Successor Agency as of June 30, 2024 was as follows:

Balance Balance Due Within Due in More
June 30, 2023 Additions Deletions June 30, 2024 One Year Than One Year Bonds payable:
1998-1 AD improvement bonds $ 490,000 $ - $ (490,000) $ - $ - $ - Total $ 490,000 $ - $ (490,000) $ - $ - $ -
Classification
1998-1 AD Improvement Bonds
On June 24, 1998, the City issued Assessment District No. 1998-1 Limited Obligation Improvement Bonds in the amount of $6,825,000 bearing interest rates of 4.25-5.60% with maturity dates from September 2, 1999 to 2023. The Bonds were issued to provide funding for the acquisition of certain storm drains, surface improvements, rights-of-way associated with the improvements, to pay the costs of issuance and to establish a Reserve Fund. Interest is payable on March 2 and September 2 each year commencing March 2, 1999. The Successor Agency has pledged a portion of future property tax increment revenue to repay the Alvarado Creek AD 1998-1 Improvement Bonds. As of June 30, 2024, the bonds were paid in full.