CITY OF LA MESA
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
-142-
Fiscal Year
2016 2017 2018 2019
Expenses:
Governmental Activities:
General government 7,051,268 $ 6,523,062 $ 7,318,535 $ 7,680,680 $ Police 14,478,239 18,142,492 20,945,561 23,111,518
Fire 8,953,167 10,577,326 12,440,406 13,000,852
Public Works 10,279,567 13,330,892 13,745,094 17,627,643 Community services 1,965,340 1,882,162 2,223,813 2,208,030 Community development 2,192,142 1,861,233 2,197,420 2,608,391 Interest on long-term debt 1,308,668 757,816 978,734 966,233 Total governmental activities expenses 46,228,391 53,074,983 59,849,563 67,203,347 Business-type activities:
Wastewater 7,740,104 8,925,354 9,816,894 10,707,027
Total business-type activities expenses 7,740,104 8,925,354 9,816,894 10,707,027 Total primary government expenses 53,968,495 $ 62,000,337 $ 69,666,457 $ 77,910,374 $ Program Revenues:
Governmental Activities:
Charges for services:
General government 366,543 $ 387,445 $ 365,820 $ 365,290 $ Police 931,880 967,248 828,381 857,604
Fire 146,693 244,535 397,380 729,570
Public Works 815,653 820,624 637,178 1,092,727
Community services 975,339 869,183 1,046,355 966,314
Community development 1,519,487 1,783,274 1,917,863 2,877,777 Operating contributions and grants 3,584,964 3,471,575 3,215,592 4,607,947 Capital contributions and grants 6,262,843 3,128,523 4,079,834 4,859,035 Total governmental activities program revenues 14,603,402 11,672,407 12,488,403 16,356,264 Business-type activities:
Charges for services:
Wastewater 11,424,757 11,050,859 11,922,268 12,713,010
Operating grants and contributions 389,738 119,137 15,469 897,748 Total business-type activities program revenues 11,814,495 11,169,996 11,937,737 13,610,758 Total primary government program revenues 26,417,897 $ 22,842,403 $ 24,426,140 $ 29,967,022 $ Net (expenses) revenues:
Governmental activities (31,624,989) $ (41,402,576) $ (47,361,160) $ (50,847,083) $ Business-type activities 4,074,391 2,244,642 2,120,843 2,903,731 Total primary government net (expenses)/revenues (27,550,598) $ (39,157,934) $ (45,240,317) $ (47,943,352) $ Source: City of La Mesa, Finance Department
-143-
Fiscal Year
2020 2021 2022 2023 2024 2025
$ 7,561,189 9,164,540 $ 9,264,707 $ 9,593,588 $ 11,141,071 $ 12,508,226 $ 24,851,419 24,846,243 21,938,671 26,294,528 29,587,205 32,358,121 14,355,572 13,814,443 12,640,814 15,626,401 18,835,881 19,283,415 15,479,378 14,364,313 13,835,151 14,651,146 15,845,956 15,796,254 2,171,228 2,286,777 2,146,023 2,918,676 3,277,035 3,395,332 4,855,472 3,027,489 3,451,332 3,357,093 3,477,726 4,475,634 836,932 1,040,137 795,843 773,296 728,880 668,762
70,111,190 68,543,942 64,072,541 73,214,728 82,893,754 88,485,744 11,864,202 11,148,586 9,724,858 11,470,004 12,130,811 11,926,655 11,864,202 11,148,586 9,724,858 11,470,004 12,130,811 11,926,655 $ 81,975,392 79,692,528 $ 73,797,399 $ 84,684,732 $ 95,024,565 $ 100,412,399 $ $ 518,960 470,999 $ 506,909 $ 546,141 $ 487,073 $ 675,996 $ 316,028 668,891 599,214 785,210 776,649 622,448
489,478 484,802 458,400 681,786 368,391 430,019
829,099 1,212,667 1,341,648 1,769,012 1,442,315 1,024,852 588,650 779,890 1,138,072 2,046,733 2,099,871 2,191,478 2,719,806 2,800,960 3,894,912 4,180,132 4,252,896 4,813,034 6,743,355 4,277,817 6,783,831 6,512,927 10,040,773 7,386,027 2,841,618 5,337,212 2,637,108 4,010,452 1,394,065 9,228,624 15,046,994 16,033,238 17,360,094 20,532,393 20,862,033 26,372,478 12,418,128 13,264,331 12,849,117 13,675,770 13,425,593 14,939,864 52,695 16,777 80,647 1,117,265 31,170 43,737
12,470,823 13,281,108 12,929,764 14,793,035 13,456,763 14,983,601 $ 27,517,817 29,314,346 $ 30,289,858 $ 35,325,428 $ 34,318,796 $ 41,356,079 $ $ (55,064,196) (52,510,704) $ (46,712,447) $ (52,682,335) $ (62,031,721) $ (62,113,266) $ 606,621 2,132,522 3,204,906 3,323,031 1,325,952 3,056,946 $ (54,457,575) (50,378,182) $ (43,507,541) $ (49,359,304) $ (60,705,769) $ (59,056,320) $
CITY OF LA MESA
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
-144-
Fiscal Year
2016 2017 2018 2019
General Revenues and Other Changes in Net
Positions:
Governmental activities:
Taxes:
Property taxes 13,400,107 $ 14,393,106 $ 15,303,996 $ 16,253,621 $ Sales tax 21,910,837 21,566,533 22,173,606 22,527,184
Franchise taxes 2,239,195 2,099,952 2,150,426 2,085,816 Motor vehicle license 23,730 26,872 - 61,139
Other 1,942,860 1,907,000 2,003,252 2,141,785
Investment earnings 611,411 317,297 407,933 2,220,236
Miscellaneous 1,155,503 883,698 1,571,647 1,332,776
Sale of assets - (31,659) - (47,490)
Transfers in (out) 1,592,600 457,600 1,473,200 1,536,900 Total governmental activities 42,876,243 41,620,399 45,084,060 48,111,967 Business-type activities:
Investment earnings 82,601 10,654 36,938 331,031
Miscellaneous - - - -
Sale of assets - - - -
Transfers (1,592,600) (457,600) (1,473,200) (1,536,900) Total business-type activities (1,509,999) (446,946) (1,436,262) (1,205,869) Total primary government 41,366,244 $ 41,173,453 $ 43,647,798 $ 46,906,098 $ Change in Net Position:
Governmental activities 11,251,254 $ 217,823 $ (2,277,100) $ (2,735,116) $ Business-type activities 2,564,392 1,797,696 684,581 1,697,862 Total primary government 13,815,646 $ 2,015,519 $ (1,592,519) $ (1,037,254) $ Source: City of La Mesa, Finance Department
-145-
Fiscal Year
2020 2021 2022 2023 2024 2025
$ 18,011,887 17,180,958 $ 18,292,171 $ 20,605,575 $ 21,773,572 $ 22,572,562 $ 27,153,142 21,432,220 30,167,279 31,037,133 30,767,274 30,302,483 2,062,295 2,116,444 1,871,986 2,247,197 2,680,615 1,861,230 43,981 48,136 68,828 61,994 74,707 95,607
4,186,752 2,345,909 5,388,040 4,729,783 4,590,480 3,889,839 904,479 2,290,232 (2,591,908) 1,903,405 3,959,800 5,876,497 1,100,573 898,211 853,466 524,987 559,557 751,195
- (31,748) - - - -
1,672,570 1,559,600 2,146,300 2,325,800 2,325,792 1,108,980 55,135,679 47,839,962 56,196,162 63,435,874 66,731,797 66,458,393 (4,321) 298,783 (163,384) (333,262) 482,727 -
- - - - - 269,352
- - (22,218) - - -
(1,672,570) (1,559,600) (2,146,300) (2,325,800) (2,325,792) (1,108,980) (1,676,891) (1,260,817) (2,331,902) (2,659,062) (1,843,065) (839,628) $ 53,458,788 46,579,145 $ 53,864,260 $ 60,776,812 $ 64,888,732 $ 65,618,765 $ $ 71,483 (4,670,742) $ 9,483,715 $ 10,753,539 $ 4,700,076 $ 4,345,127 $ (1,070,270) 871,705 873,004 663,969 (517,113) 2,217,318 $ (998,787) (3,799,037) $ 10,356,719 $ 11,417,508 $ 4,182,963 $ 6,562,445 $
CITY OF LA MESA
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
-146-
Fiscal Year
2016 2017 2018 2019
General Fund:
Nonspendable 5,363,262 $ 5,350,263 $ 5,348,776 $ 5,360,347 $ Restricted 1,095,734 6,252,097 6,539,085 10,115,082
Unassigned 29,418,952 29,713,285 31,565,648 31,499,284
Total General Fund 35,877,948 41,315,645 43,453,509 46,974,713 All Other Governmental Funds:
Nonspendable 8,350,000 8,350,000 - -
Restricted 10,219,378 9,541,924 19,178,958 19,539,657
Unassigned (37,154) (937,776) (2,054,204) (2,985,750)
Total all other governmental funds 18,532,224 16,954,148 17,124,754 16,553,907 Total governmental funds 54,410,172 $ 58,269,793 $ 60,578,263 $ 63,528,620 $ Source: City of La Mesa, Finance Department
-147-
Fiscal Year
2020 2021 2022 2023 2024 2025
$ 5,354,605 5,335,940 $ 5,439,066 $ 5,368,899 $ 5,083,881 $ 4,507,779 $ 11,411,212 10,357,172 10,792,988 11,365,959 12,070,218 7,676,639 36,598,856 32,051,168 42,751,878 53,065,521 51,442,987 59,495,458 53,364,673 47,744,280 58,983,932 69,800,379 68,597,086 71,679,876 - - - - - -
21,903,852 20,559,516 24,235,595 27,032,983 26,134,939 31,356,102 (641,667) (30,936) (2,676,152) (3,549,153) (2,849,627) (3,622,544) 21,262,185 20,528,580 21,559,443 23,483,830 23,285,312 27,733,558 $ 74,626,858 68,272,860 $ 80,543,375 $ 93,284,209 $ 91,882,398 $ 99,413,434 $
CITY OF LA MESA
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
-148-
Fiscal Year
2016 2017 2018 2019
Revenues:
Property taxes 13,400,107 $ 14,393,107 $ 15,303,997 $ 16,253,621 $ Other taxes 25,721,755 25,208,250 25,934,796 26,357,920 Licenses and permits 1,753,494 1,627,942 2,030,650 2,933,508 Fines and forfeitures 649,584 834,344 895,079 759,967
Use of money and property 1,362,126 1,301,900 1,994,973 2,963,728 Intergovernmental 9,633,325 6,202,380 7,216,892 9,570,309 Charges for services 2,479,775 2,559,784 2,589,353 2,592,544 Other revenue 607,471 336,777 697,874 1,120,059
Total Revenues 55,607,637 52,464,484 56,663,614 62,551,656 Expenditures:
Current:
General government 6,935,345 5,826,859 6,100,816 6,863,513 Police 15,544,733 17,498,397 18,706,838 19,332,614
Fire 9,474,449 10,331,238 11,047,666 11,052,157
Public works 6,841,853 7,255,709 7,851,975 8,588,764
Community development 2,320,558 1,852,135 2,016,186 2,356,090 Community services 1,960,495 1,786,452 1,947,484 1,861,929 Capital outlay 5,068,565 5,135,577 4,555,318 10,213,182 Debt service:
Principal retirement 1,294,811 1,057,189 1,305,000 980,000 Interest and fiscal charges 1,318,825 822,827 1,041,831 1,008,047 Total expenditures 50,759,634 51,566,383 54,573,114 62,256,296 Excess/(deficiency) of Revenues Over Expenditures 4,848,003 898,101 2,090,500 295,360 Other financing sources (uses):
Transfers in 8,183,929 8,646,260 6,203,260 13,358,849
Transfers out (8,033,862) (7,532,660) (5,985,290) (12,703,852) Proceeds from loan - - - 2,000,000
Proceeds from lease - - - -
Proceeds of refunding bonds - 23,104,890 - -
Payment to refunded bond escrow agent - (22,854,327) - - Total other financing sources (uses) 150,067 1,364,163 217,970 2,654,997 Net Change in Fund Balances 4,998,070 $ 2,262,264 $ 2,308,470 $ 2,950,357 $ Source: City of La Mesa, Finance Department
-149-
Fiscal Year
2020 2021 2022 2023 2024 2025
$ 18,011,887 17,180,958 $ 18,292,171 $ 20,213,065 $ 21,478,439 $ 22,230,416 $ 33,103,338 25,503,934 37,029,983 37,920,147 37,721,599 36,058,203 1,580,779 3,040,210 2,495,310 2,892,641 2,721,641 2,598,357 305,362 589,740 571,586 588,747 688,509 598,500
2,191,029 2,894,417 (102,194) 4,185,726 5,790,774 8,021,030 10,654,674 9,055,357 10,231,173 11,159,904 7,891,585 19,659,695 2,031,358 3,096,545 3,005,278 3,762,666 3,079,210 3,007,370 616,329 546,286 265,431 1,388,257 1,273,369 1,145,972
68,494,756 61,907,447 71,788,738 82,111,153 80,645,126 93,319,543 6,736,643 6,635,491 8,366,854 7,960,847 9,063,145 10,260,155 21,089,779 20,452,014 23,140,909 24,114,335 25,568,098 29,241,221 12,400,879 11,472,475 13,541,528 14,309,238 16,208,574 17,290,901 8,770,752 8,788,766 8,751,602 8,997,778 10,642,214 11,087,053 4,607,639 2,697,098 3,684,602 3,332,619 3,134,630 4,305,506 1,794,948 1,865,581 2,073,243 2,205,139 2,555,183 2,754,534 4,339,213 2,832,428 4,058,791 7,086,947 8,478,817 10,451,274 1,580,004 1,535,004 1,642,310 2,182,433 1,806,306 1,774,140 938,390 999,820 889,951 847,623 787,540 733,239
62,258,247 57,278,677 66,149,790 71,036,959 78,244,507 87,898,023 6,236,509 4,628,770 5,638,948 11,074,194 2,400,619 5,421,520 6,616,007 7,155,572 5,497,004 4,603,684 12,072,013 13,234,549 (6,498,518) (7,040,102) (5,239,604) (4,473,884) (11,942,221) (14,321,569) - - - - - -
- - 20,169 1,536,840 - -
- - - - - -
- - - - - -
117,489 115,470 277,569 1,666,640 129,792 (1,087,020)
$ 6,353,998 4,744,240 $ 5,916,517 $ 12,740,834 $ 2,530,411 $ 4,334,500 $
CITY OF LA MESA
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
-150-
Fiscal
Year
Certificates of
Participation
General
Obligation
Bonds
TransNET
Commercial
Paper
Financed
Purchase
Payable
Lease
Liability
Subscription
Liability
Total Primary
Government
Percentage
of Personal
Income
2016 3,705,000 $ 23,082,189 $ - $ - $ 1,653,109 $ - $ 28,440,298 $ 1.59% 2017 3,485,000 23,104,890 - - 2,485,915 - 29,075,805 1.61% 2018 3,245,000 21,975,895 - - 2,076,532 - 27,297,427 1.48% 2019 2,985,000 21,191,900 2,000,000 - 1,653,109 - 27,830,009 1.46% 2020 2,700,000 20,377,905 1,499,996 - 1,215,131 - 25,793,032 1.30% 2021 2,395,000 19,538,910 999,992 - 888,464 - 23,822,366 1.16% 2022 2,065,000 18,664,915 499,988 658,097 473,996 - 22,361,996 1.01% 2023 1,710,000 17,760,920 - 421,496 422,517 1,053,351 21,368,284 0.89% 2024 1,325,000 16,806,925 - 284,845 370,225 526,053 19,313,048 0.72% 2025 915,000 15,797,930 - 144,382 317,109 110,971 17,285,392 0.61% Source: City Finance Department.
Source: HdL, Coren & Cone
CITY OF LA MESA
Direct and Overlapping Debt
As of June 30, 2025
-151-
2024-25 Assessed Valuation: $10,098,655,033
DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT:
Metropolitan Water District 17,155,000 $ 0.248% $ 42,544 Grossmont-Cuyamaca Community College District 331,030,377 14.108% 46,701,766 San Diego Community College District 2,095,834,859 0.002% 41,917 San Diego Unified School District 5,900,351,185 0.002% 118,007 Grossmont Union High School District 623,428,398 14.503% 90,415,821 La Mesa-Spring Valley School District 130,032,265 46.849% 60,918,816 Lemon Grove School District 34,320,521 13.637% 4,680,289 City of La Mesa 15,030,000 100.000% 15,030,000
Grossmont Hospital District 198,875,853 13.309% 26,468,387 TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT $ 244,417,547 DIRECT AND OVERLAPPING GENERAL FUND DEBT:
San Diego County General Fund Obligations $ 351,065,000 1.362% $ 4,781,505 San Diego County Pension Obligations 140,370,000 1.362% 1,911,839 San Diego County Superintendent of Schools Certificates of Participation 5,125,000 1.362% 69,803 Grossmont Union High School District Certificates of Participation 30,125,000 14.503% 4,369,029 Lemon Grove School District Certificates of Participation 24,175,000 13.637% 3,296,745 City of La Mesa General Fund Obligations 915,000 100.000% 915,000 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT $ 15,343,921 TOTAL DIRECT DEBT 15,945,000
TOTAL OVERLAPPING DEBT $ 243,816,468
COMBINED TOTAL DEBT (2) $ 259,761,468
(1)
(2)
Ratios to 2024-25 Assessed Valuation:
Direct Debt ($15,030,000)………………………………………………. 0.15%
Total Overlapping Tax and Assessment Debt………………………… 2.42% Total Direct Debt ($15,945,000)…………………………………………. 0.16%
Combined Total Debt………………………………………….................. 2.57% The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district’s assessed value that is within the boundaries of the city divided by the district’s total taxable assessed value.
Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations.
Total Debt
06/30/25
%
Applicable(1)
City's Share of
Debt 06/30/25
!"
""""'!& #
$%!!&
!
"#
$
%&"'(
) *+
'
,
*
+
-
*+
()*(+ ,(*)(*(-.*)) ,(*./*+/(*-
./
#
0
-
./
1
! "# $
%& 0
$
'.'11
'&)'23'
- 15 -
!
"#
$%&
'#"
(
)
*
+
,-
'
#
!.
/(
!0(
1
!
2
1
3
,-
'
#
!.
13(
0!
4
(
55,-
4
(
51
'
!
1
,6
!"#"$%
$&'()'!
$"!"
*+,-
.&/"."0"
'1#"$
$'!(2..&$&'
"3$"!0& "
! "# $
%&
7 # ("
8811/-&
- 15 -
!"
#!$ %
&!&'
''
'"
&"#!$
!
"#
$%
!"
! ()*+*),-*)
(.+*/.*)
(
%
! (/*/--*+*.
0
'
&"1 ()-*-)*/.
& '(
%
)
0
'
&"
()*,+*-
().-*),*./+
(
(
0'&$ !"
!" ()*+)*)-/*++
%
!"
0
'
&"
()*/.*,.)*-
(.),*+,*/
%
'#2
!" (
! "# $
%&
#*
++
,
-.
- 15 -
!"#$%!#&'
(!)
*!+!
# !,(#!-
+)!,(#!- $+(+*&
#' !&$&
./
+0!
12321
14
5
14153
14 633.
52
121513 623.
23
514214152 62.
3
515411 56.
211441
643.
21431331
465
.
4
31351
314 36
2. 4
315
113 623.
131214 4624.
++(
7#$8&/
&!. 6.
!"
#$
%
#&'
''%
()
$*
!"'
#$
)
!%+&#,
-.!+,/
%
%
#
0
%1
$&#
(
0' $*%
*
$*
0
'
)
!"# #$!#%
&' 2
'
3
45
- 15 -
!"#$!"%&
'!(
) )* *+ + , ,
!!"#
!
$
%!-#"&
.#%!(/
!"#
$#% $
"
$ $#
#$ &
&'
(!)*
"
$
$
$
+ "
$
#
'
,
)
$
#
$
$
#
,
#
$
#-
# #
!"#$"%& ! '$ #
()
.//(0(12$3*
- 15 -
!" #
$
$
%
$
& '
& ()*
*( '
+
*(
,
&
-./#01..0!
.2/!3
!"
# "$ #
%
!%&'' &(
)) -.4#0 .40 5
*%
"
))
.24!3 '
+", (%& -.
%( -('
/#&%/
0
0 1 -.!605/#0 #
%
$"
.2! 3
!"
# "$ 2"$
"+
33
&"
4%
5/
-%6
-'
1 -..#015 0 !.
%
$"
.2.#3
!"
# "$ 2"$
"+
33
&"
7-##-%'&
-'
10)0 -51044.0 !5
%
$"
0
2513
!"
# "$ 2"$
"+
33
&"
'-(
%( -(
8& -'
6-
)
0 ) 0) -5.06! 0/..
%
$"
25.3
!"
# "$ !-%
-!/0./50 /#
%
$"
1
2!/3 '
+", -(%
%9
%(-%'
))1 0 -!5054.04.1
%
$"
2!53
!"
# "$ '
4 -'
-'
1
) -!#0/41061#
%
$"
)
0
2!#3
!"
# "$ 2"$
"+
33
&"
: #
/
/#&%/
&-
-'
0)0 -!60 540!6.
*%
"
2!63
!"
# "$
-'
'-/&%
//!
1)
1
1
1
-1!401510 4. 126/3
* 1100) )0)1 -. 0 140/4.0 6
(
3 &;"
$
$
"
<<
=,
>;
"+
>
+>
)<0<
2
"
! "# $
%&
'()
*
%& 3$
&"
<<
:,
4 - 15 -
!"#!$
%
%
&
%
' (
' )*+
+) (
,
+)
-
'
.! /0$1!02 !
!
!
!3445 "
# $ %& %&'()
* +"",+-
- +(('.
((
.6206 60 !
//0
!
!3$25 (
,
*
% 1 &2+3
&'"-,'-
+,.
4 ."401420$/!
01 0
!
3645 (
,
*
% 1 5 10 #
66
+
2 '
*+
,%
(&"-
2(-&,+
4 ."/02$ 0" /
//0
!
3615 (
,
*
% 1 5 10 #
66
+
"
'
7+()&*"
((
4
. 60 !0 !!
01 0
!
!
3" 5 "
# $ "
(
,'"
((
4
4 . 60 $ 0!!!
01 0
!
3/65 "
# $
'- (
8
-' "
(
4 . 20"!!04 $
01 0
!
3/25 (
,
*
% 1 )*&+
-' "
(
4
. "0/46062"
//0
!
!
3/15 "
# $
+"-
+
37+('"('
+ + -&+
4 . 04/!0 /!
01 0
!
!
3165 (
,
*
% 1 &,'
,&
((
. 0/1"06
//0
!
31"5 "
# $ 9' 2
7 '(-.
* +9
((
4
4
!
4
!
./4!0 1/0!/1 43665+
4 4
."02620/"$0""1
-
6 +:
101
;;
<$
/=:
0 #
=
#=
4;;4
50
!
!"#$"%
&'
()*
+
&' 61
+
;;
2$
,3
- 15 -
!
"#
$
%#&!' ()*+ (+*, (,*- (-*. (.*( ((*( ((*(( (((*(/ ((/*(0 ((0*()
!
#1'2
!"
!
"
#
$
"
%&
#
$
'(
)
"
#
*
'
$
(
+
'
!
"
'
, -
3
" $#! 1#$"
44 &%.
5
#
60/,, 60(+, 60/+ 60()./ 60-/() 60,0) 60.+/, 60,+, 60+0+- 60,00 '7
8
$#39:
#1'
#$
$34//
3 #$
44$31#; '#<
#
#;#1#"34=#&
#
3
" $#!
#
3 #
>
01
2
-
*
(
3(
4
((
"
5
6
-5
!
7
6
&"
5
-
4
!&8
((
"
4
1
6
-5
!
2 ((
"
4
5
(
-
((
"
*!
-
("
-
"
*
((*
&
.%*
((
-
!
"
*
(("
((
"
4
4
"
9
*
((
(("
((
"
4
/
":
'
-
6
#
*"
&
":
-
-!
5
4
5&
*!
4
"
7
;<=>
(
-
":
#
*"
&
!&
4
? 4
<
*
(
<
&
<=
5
"
!
@A
-
&
(
(
(
-
'
!
<=
*
((
((
"
((
"
*!
7
((* -
=B
<
*
(
-
'
-
-
-
-
"
C
"
-
7
<
4
*
-
*!
((
&"
"C=
"
(
(
-
5!
*
!
*
-
-
C
7
<
!
*
!
-
-
*
(
5
D
-
&
&
!
*
&
*
!
C
>
(!(
-
(
2
!
*
!
!
&
&!
"C=
"
((
-!
*
!
!"#$"%& ! '$ #()
3
(
%
C
C
"
$+
- 15
-
!"
"
#"$
%
!"
&#"$%'(
%
%($
#)
*
"+((,
$%
%
+$!
-)
$.)!
!
%
!
%($
#)
!
%
!
%($
#)
-)
$.)!
!
%($
#)
-)
$.)!
"#$%&$'$
%&$'$
()*
&()*
+$!
+#!
/$
!!
%
+$!
/%
!(
!
+%#(0
*
+ ,
'-
,.
-+ ,
/
-0
-
1
2&
)/)*
-+/'!1
3
)0
)4
&
,$
*) )
)-
&$-
),
*5
6(
*$
0 $ 74
*)) 1
2&)/)*
-1
'*5**
2
* '*0
)89
95 :;
-1 -
!
!"# ! " !
!$%
'
)'&'( &'( *+
&'( )&'(
'
&'(
!
"
# !
$
%
&''
($)
-1 -
!
"
#
$
%&
'()(* %++
,$#-! ,$ -
" ,$$-!$! ,$ -!
,$ -"$ ,##-
,
-
" ,$$-
,$-
# ,$#-"$ .
(
-
#
-$!
-
#-$$
!-
$ -$#
#-
!
# -
#
$- #
-
"/
"-$$" #
-
#
-# #
-
#
- "! #$-
# # -
# -#
# $
-
$ #"-"$ ' *01 (
$ -#!
-
-
$
-
-
#$-
!"
!!-
"
#-
-!
!-
2
#
-$
! # -!
# $
-
$
$$-
! $#-#
-"
-
$" -$#
-$
-
%*
++
#
"-!
#
- ##!-$# #
-
#
-$"" !
-
#
-
"!-
$! "- $
-$$
3(
!-
" "-" # $-
$
! -#"
!
- #
-
-
"-!
!$- !#-
4
5
"-#!
!"-!!
! -"$
-"$"
#-!#$
-
$
- !!
- "
-$
! #!-
%4
4
-#
-#
-!
#$-$"
"-
!$ ##!-#
#"
-!!
$
-
! $
-!
! $
!-
#!
,
- $-#
$ ,
-!-#$
,
-#$-"$! ,
-#
-$
$ ,
-#
"-# ,
-#
#-"$
,
- "-"$" ,
- ! -"
$ ,
-
"- " ,
- "-"
(
6
2 '7 8 - *
+ )
/
%)
-
9
4(
-
:)+
;
6 *
(
-
)
3
+
3
<
(
+
+3
3
)
(
9
3
<
-1 -
!"#
!"
#$$
%$
&
'
!
# ( ')
*
&
+
$
,
+
-".
$
&
*
+
/
$
%
*
"
. $
"
0
"$
*
$$
* !"
#$$
!
$
)
-
$
-
+
*
-
%. +
+
&"
$
&
$
*
1 !
"
#$
0
2 %
3435
-
"
3435
2
67
8
$
"
-9
!
#
"
8
.
8
-
/
"$
0
:
-
0
-$
3;
#
<
;=,>4?
0
@@4A343;
#
#
B
6 "
-1 -
!"#
!
"# $ %
!
!
&
'
!
#!
( )#
*
!
) +
+
,
' #
!
'
*
- &#
*
- ,
#
*# '
#
!
&
'
.
!
.
# (/
+
+
0
+
)
'
1 &'
#
*#2 (
3456 .
' 3456
2
# "
0
7
"
'
" .
8
# &
#'
7
/
%""7 .
,#
'
*
"
#
9
.
*
# . 36
: ;5<=;>
*
# 554=3436
#?
# "
'
-1 -
Tel. 909-889-0871 | www.ramscpa.net | 735 E. Carnegie Dr. Suite 100, San Bernardino, CA 92408
CERTIFIED PUBLIC ACCOUNTANTS
-1-
June 17, 2026
To the Honorable City Council
City of La Mesa, California
We have audited the financial statements of the City of La Mesa (the entity) as of and for the year ended June 30, 2025, and have issued our report thereon dated June 17, 2026. Professional standards require that we advise you of the following matters relating to our audit.
Our Responsibility in Relation to the Financial Statement Audit As communicated in our engagement letter dated January 9, 2026, our responsibility, as described by professional standards, is to form and express opinions about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your respective responsibilities.
Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of the system of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control over financial reporting. Accordingly, as part of our audit, we considered the system of internal control of the entity solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control.
We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process.
However, we are not required to design procedures for the purpose of identifying other matters to communicate to you.
We have provided our comments regarding significant control deficiencies over financial reporting and material weaknesses and material noncompliance, and other matters noted during our audit in a separate letter to you dated June 17, 2026.
Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously communicated to you.
-2-
Compliance with All Ethics Requirements Regarding Independence The engagement team, others in our firm, as appropriate, and our firm have complied with all relevant ethical requirements regarding independence.
We have evaluated whether certain nonattest services performed by our firm during the audit have created a significant threat to our independence in relation to the entity. We have identified a threat to our independence (preparation of the entity’s financial statements, creating a self-review threat) that if not reduced to an acceptable level, would impair our independence. In order to reduce the threat to an acceptable level, we have applied the following safeguard:
Prior to the issuance of the entity’s financial statements, another partner or manager, independent of the engagement, will review the financial statements.
Significant Risks Identified
We have identified the possibility of the following significant risks:
Management's override of internal controls over financial reporting – Management override of internal controls is the intervention by management in handling financial information and making decisions contrary to internal control policy.
Revenue recognition – Revenue recognition is a generally accepted accounting principle that refers to the conditions under which an entity can recognize a transaction as revenue. Auditing standards indicate that recognizing revenue is a presumed fraud risk and usually classified as a significant risk in most audits.
These significant risks are presumptive in most audits and merit attention by the auditors due to the direct impact over financial reporting and internal control processes. Although identified as significant risks, we noted no matters of management override of controls or deviations from generally accepted accounting principles which caused us to modify our audit procedures or any related matters which are required to be communicated to those charged with governance due to these identified risks.
Qualitative Aspects of the Entity’s Significant Accounting Practices Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the entity is included in Note 1 to the financial statements. The City adopted GASB Statement No. 101, Compensated Absence, and GASB Statement No. 102, Certain Risk Disclosures during 2025. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus.
Significant Accounting Estimates and Related Disclosures Accounting estimates and related disclosures are an integral part of the financial statements prepared by management and are based on management’s current judgments. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management’s current judgments.
-3-
The most sensitive accounting estimates affecting the entity’s financial statements are:
Management’s estimate of the net pension liability and related deferred inflows and outflows of resources are based on actuarial reports by independent actuaries. We evaluated the key factors and assumptions used to develop the estimate in determining that it is reasonable in relation to the basic financial statements taken as a whole and in relation to the applicable opinion units.
Management’s estimate of the liability for other post-employment benefits (OPEB) and related deferred inflows and outflows of resources are based on actuarial reports provided by independent actuaries. We evaluated the key factors and assumptions used to develop the estimate in determining that it is reasonable in relation to the basic financial statements taken as a whole and in relation to the applicable opinion units.
Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users.
The most sensitive disclosures affecting the entity’s financial statements relate to:
The disclosure of fair value of investments in the basic financial statements represents amounts susceptible to market fluctuations.
The disclosure of capital assets (and related accumulated depreciation) in the basic financial statements is based on historical information which could differ from actual useful lives of each capitalized item.
The disclosure of net pension liability and related deferred inflows and outflows of resources in the basic financial statements is based on actuarial assumptions. Actual future liabilities and actuarial deferred inflows and outflows may vary from disclosed estimates.
The disclosures of the other post-employment benefits (OPEB) liability and related deferred inflows and outflows of resources in the basic financial statements is based on actuarial assumptions. Actual future liabilities and actuarial deferred inflows and outflows may vary from disclosed estimates.
The disclosure of claims payable in the basic financial statements is based on claims loss reports from third party claims management companies. Actual future liabilities may vary from disclosed estimates.
The disclosure of leases receivable, deferred inflows of resources related to leases, lease amortization, leases liabilities, right-to-use assets, and asset amortization in the basic financial statements is based on certain terms and assumptions in the lease agreements which could differ from actual amounts.
Significant Difficulties Encountered during the Audit
We encountered no significant difficulties in dealing with management relating to the performance of the audit.
-4-
Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole and each applicable opinion unit. There were no uncorrected misstatements noted.
In addition, professional standards require us to communicate to you all material, corrected misstatements that were brought to the attention of management as a result of our audit procedures.
Attachment A reflects all material misstatements that we identified as a result of our audit procedures that were brought to the attention of, and corrected by, management.
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to the entity’s financial statements or the auditor’s report.
No such disagreements arose during the course of the audit.
Representations Requested from Management
We have requested certain written representations from management, which are included in the attached letter dated June 17, 2026.
Management’s Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, the entity utilized the services of MuniTemps for consulting services related to the fiscal yearend closing process.
Other Significant Matters, Findings, or Issues
In the normal course of our professional association with the entity, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, significant events or transactions that occurred during the year, operating and regulatory conditions affecting the entity, and operational plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as the entity’s auditors.
Other Information Included in Annual Reports
Pursuant to professional standards, our responsibility as auditors for other information, whether financial or nonfinancial, included in the entity’s annual reports, does not extend beyond the information identified in the audit report, and we are not required to perform any procedures to corroborate such other information. However, in accordance with such standards, we have:
Read the transmittal letter and statistical section and considered whether a material inconsistency existed between the other the information and the basic financial statements, or the other information otherwise appears to be materially misstated. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.
-5-
Our responsibility also includes communicating to you any information which we believe is a material misstatement of fact. Nothing came to our attention that caused us to believe that such information, or its manner of presentation, is materially inconsistent with the information, or manner of its presentation, appearing in the financial statements.
This report is intended solely for the information and use of the City Council and management of the entity and is not intended to be and should not be used by anyone other than these specified parties.
Very truly yours,
Client: CIT0032 - City of La Mesa
Engagement: 2025 - City of La Mesa
Period Ending: 6/30/2025
Workpaper: 2900.21 - SAS 114 AJES Attachment A
Account Description W/P Ref Debit Credit
6100.05
201-45460-000-000000 INTEREST INCOME 15,885.00
212-45460-000-000000 INTEREST INCOME 252.00
215-45460-000-000000 INTEREST INCOME 161,108.00
216-45460-000-000000 INTEREST INCOME 149.00
220-45460-000-000000 INTEREST INCOME 7,030.00
304-45460-000-000000 INTEREST INCOME 10,523.00
307-45460-000-000000 INTEREST INCOME 1,958.00
312-45460-000-000000 INTEREST INCOME 21,557.00
501-46560-000-000000 TDA REVENUE 354,492.00
701-45460-000-000000 INTEREST INCOME 78,626.00
710-45460-000-000000 INTEREST INCOME 9,967.41
712-23020-000-000000 ADVANCE FROM OTHER FUNDS 365,420.00 201-39000-000-000000 FUND BALANCE 15,885.00
212-39000-000-000000 FUND BALANCE 252.00
215-39000-000-000000 FUND BALANCE 161,108.00
216-39000-000-000000 FUND BALANCE 149.00
220-39000-000-000000 FUND BALANCE 7,030.00
304-39000-000-000000 FUND BALANCE 10,523.00
307-39000-000-000000 FUND BALANCE 1,958.00
312-39000-000-000000 FUND BALANCE 21,557.00
501-39000-000-000000 FUND BALANCE 354,492.00
701-39000-000-000000 FUND BALANCE 78,626.00
710-3900 FUND BALANCE 9,967.41
712-39000-000-000000 FUND BALANCE 365,420.00
Total 1,026,967.41 1,026,967.41
7000.00
101-42100-000-000000 Sales Tax 1,616,795.69
101-42120-000-000000 Prop L Sales Tax 1,218,284.54
204-46620-000-000000 Gas Tax 2105 32,254.00
204-46630-000-000000 Gas Tax 2106 20,980.55
204-46640-000-000000 Gas Tax 2107 44,571.69
204-46670-000-000000 Gas Tax 2103 46,139.72
101-39000-000-000000 FUND BALANCE 2,835,080.23
204-39000-000-000000 FUND BALANCE 143,945.96
Total 2,979,026.19 2,979,026.19
5600.02
207-15650-000-000000 PREPAID EXPENSES 14,757.03
207-66920-401-000000 Interest Expense 14,757.03
Total 14,757.03 14,757.03
4600.15
603-17950-000-000000 ACCUM DEPR-EQUIP,BLDG,IMP 712,478.39 603-17950-000-000000 ACCUM DEPR-EQUIP,BLDG,IMP 188,425.40 801-39000-000-000000 FUND BALANCE 900,903.79
603-39000-000-000000 FUND BALANCE 712,478.39
603-64410-143-000000 Depreciation 188,425.40
801-17950-000-000000 ACCUM DEPR-EQUIP,BLDG,IMP 900,903.79 Total 1,801,807.58 1,801,807.58
4600.05
801-35860-000-000000 INVESTMENT IN EQUIP,VEHIC 1,013,585.00 801-17860-000-000000 FIXED ASSETS - VEH/EQUIP 1,013,585.00 Total 1,013,585.00 1,013,585.00
5600.20
603-22310-000-000000 INTEREST PAYABLE 2,014.00
603-27590-000-000000 LEASED LIABILITY 49,056.48
603-64420-143-000000 AMOTIZATION - LEASES 51,027.38
603-66920-143-000000 INTEREST EXPENSE 4,592.94
801-17891-000-000000 GASB 87 LEASED ASSETS 10,241.51
801-39000-000-000000 FUND BALANCE 4,033.86
603-17990-000-000000 ACCUM DEPR- LEASED ASSETS 51,027.38 603-22310-000-000000 INTEREST PAYABLE 4,592.94
603-27590-143-000000 LEASED LIABILITY 49,056.48
603-66920-143-000000 INTEREST EXPENSE 2,014.00
801-17891-134-000000 GASB 87 ACCUM AMORTIZATION 10,241.51 801-17891-134-000000 GASB 87 ACCUM AMORTIZATION 4,033.86 Total 120,966.17 120,966.17
Adjusting Journal Entries JE # 107
Adjusting Journal Entries
Adjusting Journal Entries JE # 101
To record adjustment to agree to prior year issued statements Adjusting Journal Entries JE # 102
To fix tax accrual from 2024.
Adjusting Journal Entries JE # 103
To adjust prepaid for debt service for SRF loan 2, 3, and 6 Adjusting Journal Entries JE # 105
To record a correction of error for depreciation expense recorded in fund 603 that was governmental activity related Adjusting Journal Entries JE # 106
To correct CY ISF recorded in fund 801 and correct $199 variance from fixed asset summary.
To correct CY lease balance and record amortization expense. To reverse AJE 1879 and record correct interest accrual for lease
5600.02
801-17890-134-000000 GASB96 EQ ASSET 408,054.49
801-35890-000-000000 INVESTMENT IN SBITA 408,054.49
Total 408,054.49 408,054.49
4600.05
603-39000-000-000000 FUND BALANCE 2,379,433.00
603-64410-143-000000 Depreciation 131,908.00
603-17950-000-000000 ACCUM DEPR-EQUIP,BLDG,IMP 2,511,341.00 Total 2,511,341.00 2,511,341.00
7950.10
602-22800-000-000000 EST CLAIMS AND JUDGMENTS 766,135.00 604-22800-000-000000 EST CLAIMS AND JUDGMENTS 46,516.96 602-64520-136-000000 Estimated Claims and Judgments 766,135.00 604-64520-136-000000 Estimated Claims and Judgments 46,516.96 Total 812,651.96 812,651.96
204-11010-000-000000 CASH 156,671.96
218-39000-000-000000 FUND BALANCE 10,560.34
218-46870-000-000000 Gas Tax RMRA Funds 156,671.96
204-46870-000-000000 GAS TAX RMRA FUNDS 156,671.96
218-11010-000-000000 CASH 156,671.96
218-46870-000-000000 Gas Tax RMRA Funds 10,560.34
Total 323,904.26 323,904.26
4200.17
101-13210-000-000000 ACCOUNTS RECEIVABLE 115,491.87
101-39000-000-000000 FUND BALANCE 115,491.87
Total 115,491.87 115,491.87
8800S.05
101-11010-000-000000 CASH 22,960.39
215-22900-000-000000 DEFERRED REVENUE 2,975,851.92
215-52000-000-000000 INTERFUND TRANSFERS OUT 1,961,782.39 304-11010-000-000000 CASH 1,938,821.60
101-50100-000-000000 Interfund Transfers In 22,960.39
215-11010-000-000000 CASH 1,961,782.39
215-46560-000-215012 AMERICAN RESCUE ACT (ARA) 2,975,851.92 304-50100-000-000000 Interfund Transfers In 1,938,821.60 Total 6,899,416.30 6,899,416.30
5900.05
215-46560-000-215019 LOCAL EARLY ACTION PLAN (LEAP) 300,000.00 215-22900-000-000000 DEFERRED REVENUE 300,000.00
Total 300,000.00 300,000.00
603-39000-000-000000 FUND BALANCE 46,731.31
603-65850-143-000000 Vehicle Replacement 46,731.31
Total 46,731.31 46,731.31
7475.00
101-11010-000-000000 CASH 33,843.00
460-50100-000-000000 Interfund Transfers In 33,843.00
101-52000-000-000000 INTERFUND TRANSFERS OUT 33,843.00
460-11010-000-000000 CASH 33,843.00
Total 67,686.00 67,686.00
214-46560-000-214066 PW YARD SOLAR PANEL & BATTERY 400,000.00 214-22900-000-000000 DEFERRED REVENUE 400,000.00
Total 400,000.00 400,000.00
5400.06
205-13220-000-000000 DUE FROM OTHER GOVERNMENTS 1,470,002.00 205-22901-000-000000 UNAVAILABLE REVENUE 1,470,002.00
Total 1,470,002.00 1,470,002.00
3700.02
214-13650-000-000000 GRANTS RECEIVABLE 55,979.96
214-22901-000-000000 UNAVAILABLE REVENUE 55,979.96
Total 55,979.96 55,979.96
Adjusting Journal Entries JE # 108
To adjust SBITA A/D to actual
Adjusting Journal Entries JE # 109
To correct depreciation and accumulated depreciation for other assets - intangibles Adjusting Journal Entries JE # 116
Adjusting Journal Entries JE # 111
To adjust workers comp and general liabilities based on actuarial valuation.
Adjusting Journal Entries JE # 112
To correct RMRA revenue, per client no allocation of RMRA funds to fund 204 in 2025.
To correct ariance in RMRA to f nd balance res lt from recording in FY2024 Adjusting Journal Entries JE # 113
To correct property tax 2024 accrual, not recorded in AR in prior year Adjusting Journal Entries JE # 114
To recognize revenue based on SEFA expenditures for ARPA funds.
To record a transfer o t of the ARPA f nds to f nd 101 and 304 that recorded some of the c rrent ear ARPA e pendit res Adjusting Journal Entries JE # 115
To reclass LEAP grant received in advance of qualifying expenditures.
To record deferred revenue for TransNet expenditures in Fiscal Year 2025 Adjusting Journal Entries JE # 201
To record accrual grants
To correct AJE 1923 for actual net position adjustment.
Adjusting Journal Entries JE # 117
To reduce the COPS Transfer from client aJE 1922 to the budgeted amount. This amount was transferred for the debt service payment, but the f nd earned interest to co er the difference
Adjusting Journal Entries JE # 118
Based on inquiry with Monica, and review of support $400K was received in advance and no expenditures incurred as of 6/30/2025.
Reclassification to nearned re en e re en e ill be recogni ed as e pendit res are inc rred Adjusting Journal Entries JE # 119
3700.05
710-39700-000-000000 TRUST FUND RECEIPTS 876,912.00
710-39700-000-000000 TRUST FUND RECEIPTS 20,000.00
711-11010-000-000000 CASH 896,912.00
710-11010-000-000000 CASH 876,912.00
710-11010-000-000000 CASH 20,000.00
711-41980-000-000000 RPTTF Distribution 896,912.00
Total 1,793,824.00 1,793,824.00
3700.06
101-11010-000-000000 CASH 17,740.50
206-11010-000-000000 CASH 26,034.32
101-43200-000-000000 Business Licenses 17,740.50
206-45510-000-000000 Parking Meter 26,034.32
Total 43,774.82 43,774.82
3700.07
603-17860-000-000000 FIXED ASSETS - VEH/EQUIP 1,013,585.50 603-65850-143-000000 Vehicle Replacement 1,013,585.50
Total 1,013,585.50 1,013,585.50
3700.09
101-11010-000-000000 CASH 686,656.00
711-23020-000-000000 ADVANCE FROM OTHER FUNDS 686,656.00 711-64320-670-000000 Contribution To Other Agencies 171,664.00 712-11010-000-000000 CASH 171,664.00
101-13690-000-000000 ADVANCE TO ACRDA 686,656.00
711-11010-000-000000 CASH 858,320.00
712-48990-000-000000 Misc Other Revenue 171,664.00
Total 1,716,640.00 1,716,640.00
3700.10
603-22320-000-000000 ACCOUNTS PAYABLE 206,227.83
603-65860-143-000000 Computer/Related Equipment 206,227.83 Total 206,227.83 206,227.83
3700.11
603-17860-000-000000 FIXED ASSETS - VEH/EQUIP 206,227.83 603-64410-143-000000 Depreciation 2,454.93
603-17950-000-000000 ACCUM DEPR-EQUIP,BLDG,IMP 2,454.93 603-65860-143-000000 Computer/Related Equipment 206,227.83 Total 208,682.76 208,682.76
3700.12
452-45460-000-000000 Interest Income 204,436.00
452-13760-000-000000 INTEREST RECEIVABLE 204,436.00
Total 204,436.00 204,436.00
3700.14 7000.00
101-41010-000-000000 Property Taxes-Current 88,594.15
101-41020-000-000000 Property Taxes-Delinquent 3,992.98 101-42130-000-000000 Property Transfer Tax 22,904.74
452-41010-000-000000 Property Taxes-Current 11,086.97
452-41020-000-000000 Property Taxes-Delinquent 412.16
101-13210-000-000000 ACCOUNTS RECEIVABLE 115,491.87
452-13210-000-000000 ACCOUNTS RECEIVABLE 11,499.13
Total 126,991.00 126,991.00
3700.16
603-17860-000-000000 FIXED ASSETS - VEH/EQUIP 812,322.52 603-65850-143-000000 Vehicle Replacement 1,013,585.50
801-17860-000-000000 FIXED ASSETS - VEH/EQUIP 1,013,585.50 801-17860-000-000000 FIXED ASSETS - VEH/EQUIP 201,262.98 603-17860-000-000000 FIXED ASSETS - VEH/EQUIP 1,013,585.50 603-65840-143-000000 Equipment Replacement 236,198.46
603-65850-143-000000 Vehicle Replacement 576,124.06
801-35860-000-000000 INVESTMENT IN EQUIP,VEHIC 1,013,585.50 801-35860-000-000000 INVESTMENT IN EQUIP,VEHIC 201,262.98 Total 3,040,756.50 3,040,756.50
3700.17
603-17950-000-000000 ACCUM DEPR-EQUIP,BLDG,IMP 1,260.67 603-39000-000-000000 FUND BALANCE 597,603.26
603-39000-000-000000 FUND BALANCE 1,260.67
603-65850-143-000000 Vehicle Replacement 597,603.26
Total 598,863.93 598,863.93
Adjusting Journal Entries JE # 209
Adjusting Journal Entries JE # 204
ROPS for 2025
Adjusting Journal Entries JE # 205
To accrue business licenses and parking.
Adjusting Journal Entries JE # 206
To correct capitalization of assets in fund 603
Adjusting Journal Entries JE # 207
To record repayment for old police station
Adjusting Journal Entries JE # 208
To reverse duplicate AP entry
Client JE 1911 - To record fixed assets in fund 603.
Adjusting Journal Entries JE # 210
To record reversal of interest income (duplicate entry) Adjusting Journal Entries JE # 212
To reverse PY accrual of Property Taxes
Adjusting Journal Entries JE # 213
Client AJE 1908 - To record transfer fund 603 Fixed Asset Corrected.
Adjusting Journal Entries JE # 214
AJE 1920 - PPA for the Peterbuilt Truck.
3700.18
603-17860-000-000000 FIXED ASSETS - VEH/EQUIP 173,255.46 603-17950-000-000000 ACCUM DEPR-EQUIP,BLDG,IMP 56,985.10 603-22320-000-000000 ACCOUNTS PAYABLE 57,751.82
603-39000-000-000000 FUND BALANCE 225,235.84
603-65850-143-000000 Vehicle Replacement 165,188.19
801-17860-000-000000 FIXED ASSETS - VEH/EQUIP 63,304.82 801-35860-000-000000 INVESTMENT IN EQUIP,VEHIC 970,622.17 603-17860-000-000000 FIXED ASSETS - VEH/EQUIP 63,304.82 603-17860-000-000000 FIXED ASSETS - VEH/EQUIP 93,327.68 603-64410-143-000000 Depreciation 188,893.26
603-65840-143-000000 Equipment Replacement 101,883.37
603-65850-143-000000 Vehicle Replacement 173,255.46
603-65850-143-000000 Vehicle Replacement 57,751.82
801-17860-000-000000 FIXED ASSETS - VEH/EQUIP 920,057.98 801-17950-000-000000 ACCUM DEPR-EQUIP,BLDG,IMP 50,564.19 801-35860-000-000000 INVESTMENT IN EQUIP,VEHIC 63,304.82 Total 1,712,343.40 1,712,343.40
3700.19
603-64410-143-000000 Depreciation 131,908.00
603-39000-000-000000 FUND BALANCE 131,908.00
Total 131,908.00 131,908.00
3700.20
101-62160-101-000000 Retirement - PERS UAL 1,861.18
101-62160-102-000000 Retirement - PERS UAL 5,467.65
101-62160-103-000000 Retirement - PERS UAL 6,909.28
101-62160-131-000000 Retirement - PERS UAL 16,529.38
101-62160-132-000000 Retirement - PERS UAL 10,958.28
101-62160-133-000000 Retirement - PERS UAL 5,217.64
101-62160-141-000000 Retirement - PERS UAL 22,683.84
101-62160-142-000000 Retirement - PERS UAL 223.19
101-62160-201-000000 Retirement - PERS UAL 47,895.56
101-62160-202-000000 Retirement - PERS UAL 176,590.27
101-62160-203-000000 Retirement - PERS UAL 78,094.06
101-62160-204-000000 Retirement - PERS UAL 32,434.22
101-62160-207-000000 Retirement - PERS UAL 5,991.61
101-62160-222-000000 Retirement - PERS UAL 144,895.54
101-62160-223-000000 Retirement - PERS UAL 4,117.98
101-62160-225-000000 Retirement - PERS UAL 6,804.86
101-62160-226-000000 Retirement - PERS UAL 28,840.21
101-62160-302-000000 Retirement - PERS UAL 8,009.89
101-62160-303-000000 Retirement - PERS UAL 8,475.43
101-62160-311-000000 Retirement - PERS UAL 6,094.11
101-62160-312-000000 Retirement - PERS UAL 9,944.83
101-62160-313-000000 Retirement - PERS UAL 758.65
101-62160-314-000000 Retirement - PERS UAL 6,995.49
101-62160-315-000000 Retirement - PERS UAL 8,464.89
101-62160-317-000000 Retirement - PERS UAL 3,894.79
101-62160-318-000000 Retirement - PERS UAL 2,350.67
101-62160-319-000000 Retirement - PERS UAL 4,693.67
101-62160-320-000000 Retirement - PERS UAL 14,263.01
101-62160-321-000000 Retirement - PERS UAL 4,476.23
101-62160-322-000000 Retirement - PERS UAL 1,387.03
101-62160-323-000000 Retirement - PERS UAL 1,377.45
101-62160-502-000000 Retirement - PERS UAL 3,478.11
101-62160-504-000000 Retirement - PERS UAL 3,872.76
101-62160-505-000000 Retirement - PERS UAL 4,054.76
101-62160-506-000000 Retirement - PERS UAL 5,473.40
101-62160-601-000000 Retirement - PERS UAL 13,224.66
101-62160-602-000000 Retirement - PERS UAL 14,748.66
206-62160-208-000000 Retirement - PERS UAL 1,174.38
206-62160-640-000000 Retirement - PERS UAL 1,166.71
207-62160-401-000000 Retirement - PERS UAL 19,831.24
207-62160-402-000000 Retirement - PERS UAL 18,499.77
208-62160-301-000000 Retirement - PERS UAL 7,863.34
601-11010-000-000000 CASH 779,590.00
602-62160-136-000000 Retirement - PERS UAL 2,919.65
604-62160-137-000000 Retirement - PERS UAL 2,919.65
711-62160-670-000000 Retirement - PERS UAL 2,077.67
712-62160-680-000000 Retirement - PERS UAL 1,584.35
101-11010-000-000000 CASH 721,553.24
206-11010-000-000000 CASH 2,341.09
207-11010-000-000000 CASH 38,331.01
208-11010-000-000000 CASH 7,863.34
601-22580-000-000000 PERS UAL PREPAYMENT 779,590.00
602-11010-000-000000 CASH 2,919.65
604-11010-000-000000 CASH 2,919.65
711-11010-000-000000 CASH 2,077.67
712-11010-000-000000 CASH 1,584.35
Total 1,559,180.00 1,559,180.00
Adjusting Journal Entries JE # 215
To correct fixed assets and expenditures.
Adjusting Journal Entries JE # 216
Final correction fixed assets fund 603.
Adjusting Journal Entries JE # 217
To record AJE 1915.
3700.21
101-11010-000-000000 CASH 618,190.44
206-11010-000-000000 CASH 1,543.26
207-11010-000-000000 CASH 33,301.03
208-11010-000-000000 CASH 5,658.22
213-11010-000-000000 CASH 5,511.25
601-22490-000-000000 DEFERRED COMP ER MATCH 670,278.34
602-11010-000-000000 CASH 2,072.32
604-11010-000-000000 CASH 2,072.29
711-11010-000-000000 CASH 611.88
712-11010-000-000000 CASH 1,317.67
101-62050-101-000000 Retirement - PERS 1,363.08
101-62050-102-000000 Retirement - PERS 4,609.18
101-62050-103-000000 Retirement - PERS 4,831.86
101-62050-131-000000 Retirement - PERS 13,772.81
101-62050-132-000000 Retirement - PERS 8,005.49
101-62050-133-000000 Retirement - PERS 5,677.10
101-62050-134-000000 Retirement - PERS 8,312.63
101-62050-141-000000 Retirement - PERS 13,515.61
101-62050-142-000000 Retirement - PERS 172.78
101-62050-201-000000 Retirement - PERS 35,223.89
101-62050-202-000000 Retirement - PERS 170,373.50
101-62050-203-000000 Retirement - PERS 67,761.95
101-62050-204-000000 Retirement - PERS 27,696.13
101-62050-207-000000 Retirement - PERS 4,989.93
101-62050-222-000000 Retirement - PERS 143,416.79
101-62050-223-000000 Retirement - PERS 1,455.90
101-62050-225-000000 Retirement - PERS 6,729.32
101-62050-226-000000 Retirement - PERS 26,751.50
101-62050-302-000000 Retirement - PERS 4,378.53
101-62050-303-000000 Retirement - PERS 3,738.61
101-62050-311-000000 Retirement - PERS 2,982.81
101-62050-312-000000 Retirement - PERS 5,799.16
101-62050-313-000000 Retirement - PERS 482.08
101-62050-314-000000 Retirement - PERS 3,900.85
101-62050-315-000000 Retirement - PERS 4,133.76
101-62050-317-000000 Retirement - PERS 1,499.49
101-62050-318-000000 Retirement - PERS 1,594.94
101-62050-319-000000 Retirement - PERS 1,638.91
101-62050-320-000000 Retirement - PERS 9,150.03
101-62050-321-000000 Retirement - PERS 2,857.06
101-62050-322-000000 Retirement - PERS 834.42
101-62050-323-000000 Retirement - PERS 703.87
101-62050-502-000000 Retirement - PERS 963.41
101-62050-504-000000 Retirement - PERS 893.57
101-62050-505-000000 Retirement - PERS 598.48
101-62050-506-000000 Retirement - PERS 2,246.89
101-62050-507-000000 RETIREMENT - PERS 4,923.53
101-62050-508-000000 RETIREMENT - PERS 644.73
101-62050-509-000000 RETIREMENT - PERS 508.83
101-62050-601-000000 Retirement - PERS 11,285.79
101-62050-602-000000 Retirement - PERS 7,771.24
206-62050-208-000000 Retirement - PERS 632.74
206-62050-640-000000 Retirement - PERS 910.52
207-62050-401-000000 Retirement - PERS 24,788.47
207-62050-402-000000 Retirement - PERS 8,512.56
208-62050-301-000000 Retirement - PERS 5,658.22
213-62050-000-213065 RETIREMENT - PERS 2,873.04
213-62050-000-213066 RETIREMENT - PERS 2,638.21
601-11010-000-000000 CASH 670,278.34
602-62050-136-000000 Retirement - PERS 2,072.32
604-62050-137-000000 Retirement - PERS 2,072.29
711-62050-670-000000 Retirement - PERS 611.88
712-62050-680-000000 Retirement - PERS 1,317.67
101-62050-205-000000 RETIREMENT - PERS
Total 1,340,556.70 1,340,556.70
3700.22
601-22420-000-000000 HEALTH INSURANCE 601,567.99
601-47110-000-000000 Health Insurance 601,567.99
Total 601,567.99 601,567.99
Adjusting Journal Entries JE # 218
To record AJE 1916.
Adjusting Journal Entries JE # 219
To record AJE 1917
3700.23
601-22370-000-000000 PERS 91,746.60
601-22370-000-000000 PERS 53,357.48
601-22370-000-000000 PERS 52,694.45
601-22370-000-000000 PERS 39,628.56
601-22370-000-000000 PERS 30,128.97
601-22370-000-000000 PERS 91,005.49
601-22370-000-000000 PERS 54,433.73
601-22370-000-000000 PERS 53,314.09
601-22370-000-000000 PERS 39,637.46
601-22370-000-000000 PERS 30,128.97
601-22380-000-000000 STATE DISABILITY INS 3,385.10
601-22400-000-000000 DEFERRED COMPENSATION 37,216.09
601-22400-000-000000 DEFERRED COMPENSATION 5,304.54
601-22400-000-000000 DEFERRED COMPENSATION 1,084.76
601-22400-000-000000 DEFERRED COMPENSATION 8,748.08
601-22400-000-000000 DEFERRED COMPENSATION 37,231.09
601-22400-000-000000 DEFERRED COMPENSATION 5,304.54
601-22400-000-000000 DEFERRED COMPENSATION 1,084.76
601-22400-000-000000 DEFERRED COMPENSATION 8,748.08
601-22400-000-000000 DEFERRED COMPENSATION 44,970.92
601-22400-000-000000 DEFERRED COMPENSATION 5,045.69
601-22400-000-000000 DEFERRED COMPENSATION 1,084.76
601-22400-000-000000 DEFERRED COMPENSATION 5,273.08
601-22400-000-000000 DEFERRED COMPENSATION 46,921.13
601-22400-000-000000 DEFERRED COMPENSATION 113,879.59
601-39000-000-000000 FUND BALANCE 321,897.11
601-39000-000-000000 FUND BALANCE 3,385.10
601-39000-000-000000 FUND BALANCE 536,075.80
Total 861,358.01 861,358.01
3700.25
101-52000-000-000000 INTERFUND TRANSFERS OUT 493,043.00 460-11010-000-000000 CASH 493,043.00
101-11010-000-000000 CASH 493,043.00
460-50100-000-000000 Interfund Transfers In 493,043.00
Total 986,086.00 986,086.00
3700.26
101-52000-000-000000 INTERFUND TRANSFERS OUT 1,087,020.00 207-52000-400-000000 INTERFUND TRANSFERS OUT 1,108,980.00 604-11010-000-000000 CASH 2,196,000.00
101-11010-000-000000 CASH 1,087,020.00
207-11010-000-000000 CASH 1,108,980.00
604-50100-000-000000 Interfund Transfers In 2,196,000.00 Total 4,392,000.00 4,392,000.00
3700.27
603-17950-000-000000 ACCUM DEPR-EQUIP,BLDG,IMP 18,659.44 603-65840-143-000000 Equipment Replacement 83,055.83
603-39000-000-000000 FUND BALANCE 65,390.75
603-65850-143-000000 Vehicle Replacement 36,324.52
Total 101,715.27 101,715.27
3700.28
214-13650-000-000000 GRANTS RECEIVABLE 900,000.00
214-13650-000-000000 GRANTS RECEIVABLE 14,806.29
214-22901-000-000000 UNAVAILABLE REVENUE 14,806.29
214-46560-000-214025 BLVD DR STORM DRAIN IMPR 900,000.00 Total 914,806.29 914,806.29
3700.29
207-39000-000-000000 FUND BALANCE 148,957.77
207-61010-401-000000 Regular Salaries 46,495.78
207-61010-402-000000 Regular Salaries 35,075.76
802-13010-000-000000 AMT TO BE PROVIDED LTD 1,298,594.16 802-13010-000-000000 AMT TO BE PROVIDED LTD 339,074.38
207-27400-000-000000 Compensated Absences 81,571.54
207-27400-000-000000 Compensated Absences 148,957.77
802-27400-000-000000 COMPENSATED ABSENCES 1,298,594.16
802-27400-000-000000 COMPENSATED ABSENCES 339,074.38
Total 1,868,197.85 1,868,197.85
3700.30
101-61010-601-000000 Regular Salaries 22,266.17
711-11010-000-000000 CASH 22,266.17
101-11010-000-000000 CASH 22,266.17
711-61010-670-000000 Regular Salaries 22,266.17
Total 44,532.34 44,532.34
Adjusting Journal Entries JE # 222
Adjusting Journal Entries JE # 220
To record AJE 1918.
To record AJE 1922.
Adjusting Journal Entries JE # 223
To record AJE 1925.
Adjusting Journal Entries JE # 224
To post AJE 1923.
Adjusting Journal Entries JE # 225
AJE 1926: to accrue revenue in fund 214
Adjusting Journal Entries JE # 226
To record compensated absences.
Adjusting Journal Entries JE # 227
To record AJE 1928
3700.31
501-23010-000-000000 DUE TO OTHER FUNDS 76,424.00
501-23030-000-000000 Due To Other Governments 76,424.00 Total 76,424.00 76,424.00
3700.08
214-11010-000-000000 CASH 5,276,523.03
214-52000-000-000000 INTERFUND TRANSFERS OUT 5,914,156.14 218-52000-000-000000 INTERFUND TRANSFERS OUT 346,114.14 302-11010-000-000000 CASH 4,656,367.00
302-11010-000-000000 CASH 346,114.14
304-11010-000-000000 CASH 1,106,820.27
305-11010-000-000000 CASH 150,968.87
214-11010-000-000000 CASH 5,914,156.14
214-52000-000-214012 INTERFUND TRANSFERS OUT 58,926.67
214-52000-000-214025 INTERFUND TRANSFERS OUT 979,990.71 214-52000-000-214029 INTERFUND TRANSFERS OUT 3,000,000.00 214-52000-000-214033 INTERFUND TRANSFERS OUT 180,570.13 214-52000-000-214034 INTERFUND TRANSFERS OUT 159,502.84 214-52000-000-214035 INTERFUND TRANSFERS OUT 125,000.00 214-52000-000-214038 INTERFUND TRANSFERS OUT 215,394.00 214-52000-000-214040 INTERFUND TRANSFERS OUT 230,000.00 214-52000-000-214042 INTERFUND TRANSFERS OUT 327,138.68 218-11010-000-000000 CASH 346,114.14
302-50100-000-000000 Interfund Transfers In 4,656,367.00 302-50100-000-000000 Interfund Transfers In 346,114.14
304-50100-000-000000 Interfund Transfers In 1,106,820.27 305-50100-000-000000 Interfund Transfers In 150,968.87
Total 17,797,063.59 17,797,063.59
3700.01
302-50100-000-000000 Interfund Transfers In 726,138.32
304-50100-000-000000 Interfund Transfers In 979,990.31
305-50100-000-000000 Interfund Transfers In 125,000.00
306-50100-000-000000 Interfund Transfers In 3,445,394.00 302-11010-000-000000 CASH 726,138.32
304-11010-000-000000 CASH 979,990.31
305-11010-000-000000 CASH 125,000.00
306-11010-000-000000 CASH 3,445,394.00
Total 5,276,522.63 5,276,522.63
3700.32
710-39800-000-000000 TRUST FUND DISBURSEMENTS 876,912.00 710-39800-000-000000 TRUST FUND DISBURSEMENTS 20,000.00 710-39700-000-000000 TRUST FUND RECEIPTS 896,912.00
Total 896,912.00 896,912.00
Total All Journal Entries 67,883,324.94 67,883,324.94
Adjusting Journal Entries JE # 228
To correct successor Agency
To record client AJE 1929
Adjusting Journal Entries JE # 229
To record AJE 1932.
Adjusting Journal Entries JE # 230
To book AJE 1933
Adjusting Journal Entries JE # 231
June 17, 2026
Rogers, Anderson, Malody & Scott, LLP
This representation letter is provided in connection with your audit of the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of La Mesa (the entity) which compromise the statement of financial position as of June 30, 2025, and the respective change in financial position and, where applicable, cash flows for the year then ended, and the related notes to the financial statements, for the purpose of expressing opinions on whether the financial statements of the various opinion units are presented fairly, in all material respects, in accordance with accounting principles generally accepted for governments in the United States of America (U.S. GAAP).
Certain representations in this letter are described as being limited to matters that are material.
Items are considered material, regardless of size, if they involve an omission or misstatement of accounting information such that, in the light of surrounding circumstances, 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.
We confirm that, to the best of our knowledge and belief, having made such inquiries as we considered necessary for the purpose of appropriately informing ourselves as of June 17, 2026.
Financial Statements
• We have fulfilled our responsibilities, as set out in the terms of the audit engagement letter dated January 9, 2025, for the preparation and fair presentation of the financial statements of the various opinion units referred to above in accordance with U.S.
GAAP.
• The financial statements refer to above have been fairly presented in accordance with U.S. GAAP and include all properly classified funds, required supplementary information, and noted to the basic financial statements. • We acknowledge our responsibility for the design, implementation, and maintenance of the system 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.
• We acknowledge our responsibility for the design, implementation, and maintenance of internal control to prevent and detect fraud.
• The methods, data and significant assumptions used by us in making accounting estimates and their related disclosures, are appropriate to achieve recognition, measurement, or disclosure that is reasonable in the context of U.S. GAAP.
• All related party relationships and transactions have been appropriately accounted for and disclosed in accordance with the requirements of U.S. GAAP. • All events subsequent to the date of the financial statements and for which U.S. GAAP requires adjustment or disclosure have been adjusted or disclosed. • We acknowledge our responsibility for compliance with the laws, regulations, and provisions of contracts and grant agreements.
• The effects of all known actual or possible litigation and claims have been accounted for and disclosed in accordance with U.S. GAAP.
• All component units, as well as joint ventures with an equity interest, if any, are included and other joint ventures and related organizations are properly disclosed. • All funds and activities are properly classified.
• All funds that meet the quantitative criteria in GASB Statement No. 34, Basic Financial Statements—and Management's Discussion and Analysis—for State and Local Governments, GASB Statement No. 37, Basic Financial Statements—and Management's Discussion and Analysis—for State and Local Governments: Omnibus as amended, and GASB Statement No. 65, Items Previously Reported as Assets and Liabilities, for presentation as major are identified and presented as such and all other funds that are presented as major are considered important to financial statement users. • All components of net position, nonspendable fund balance, and restricted, committed, assigned, and unassigned fund balance are properly classified and, if applicable, approved.
• Our policy regarding whether to first apply restricted or unrestricted resources when an expense is incurred for purposes for which both restricted and unrestricted net position/fund balance are available is appropriately disclosed and net position/fund balance is properly recognized under the policy.
• All revenues within the statement of activities have been properly classified as program revenues, general revenues, contributions to term or permanent endowments, or contributions to permanent fund principal.
• All expenses have been properly classified in or allocated to functions and programs in the statement of activities, and allocations, if any, have been made on a reasonable basis.
• All interfund and intra-entity transactions and balances have been properly classified and reported.
• Special items and extraordinary items have been properly classified and reported. • Deposit and investment risks have been properly and fully disclosed. • Capital assets, including infrastructure assets, are properly capitalized, reported, and if applicable, depreciated.
• Nonexchange and exchange financial guarantees, either written or oral, under which it is more likely than not that a liability exists have been properly recorded, or if we are obligated in any manner, are disclosed
• We have reviewed, approved, and taken responsibility for the financial statements and related notes.
• We have reviewed and approved the various adjusting journal entries that were proposed by you for recording in our books and records and reflected in the financial statements and the effects of material adjustments are summarized in the attached schedule.
• We have evaluated all of our lease and subscription agreements and have given you our assessment as to whether each agreement is subject to GASB Statement No. 87, Leases and GASB Statement No. 96, Subscription Based Information Technology Arrangements.
• With regard to investments and other instruments reported at fair value:
− The underlying assumptions are reasonable and they appropriately reflect management’s intent and ability to carry out its stated courses of action. − The measurement methods and related assumptions used in determining fair value are appropriate in the circumstances and have been consistently applied. − The disclosures related to fair values are complete, adequate, and in accordance with U.S. GAAP.
− There are no subsequent events that require adjustments to the fair value measurements and disclosures included in the financial statements. • With regard to pensions and OPEB:
− We believe that the actuarial assumptions and methods used to measure pension and OPEB liabilities and costs for financial accounting purposes are appropriate in the circumstances.
− Increases in benefits, elimination of benefits and all similar amendments have been disclosed in accordance with U.S. GAAP and are included in the most recent actuarial valuation, or disclosed as a subsequent event. • We have conducted a comprehensive risk assessment and disclosed all material concentrations and constraints in accordance with GASB Statement No. 102, Certain Risk Disclosures. These disclosures provide sufficient detail to enable users of financial statements to understand the nature of the circumstances disclosed and the government’s vulnerability to the risk of a substantial impact associated with the concentration or constraint, if applicable.
• We have evaluated the concentrations and constraints, including those that occur subsequent to the statement of net position date but before the financial statements are issued and have been properly disclosed in the financial statements as subsequent events. • With respect to preparation of the financial statements, we have performed the following:
− Made all management decisions and performed all management functions; − Assigned a competent individual to oversee the services; − Evaluated the adequacy of the services performed;
− Evaluated and accepted responsibility for the result of the service performed; and
− Established and maintained internal controls, a process to monitor the system of internal controls.
• There have been no changes or updates to legal information disclosed to you by our attorneys since the date of such legal response and now.
Information Provided
• We have provided you with:
− Access to all information, of which we are aware that is relevant to the preparation and fair presentation of the financial statements of the various opinion units referred to above, such as records, documentation, meeting minutes, and other matters; − Additional information that you have requested from us for the purpose of the audit; and
− Unrestricted access to persons within the entity from whom you determined it necessary to obtain audit evidence.
− A written acknowledgement of all the documents that we expect to issue that will be included in the annual report and the planned timing and method of issuance of that annual report;
− A final version of the annual report (including all the documents that, together, comprise the annual report) in a timely manner prior to the date of the auditor’s report.
• The financial statements and any other information included in the annual report are consistent with one another, and the other information does not contain any material misstatements.
• All information provided in electronic form are true representations of the original documents.
• All transactions have been recorded in the accounting records and are reflected in the financial statements.
• We have disclosed to you the results of our assessment of the risk that the financial statements may be materially misstated as a result of fraud. • We have provided to you our analysis of the entity’s ability to continue as a going concern, including significant conditions and events present, concentrations and constraints, and we believe that our use of the going concern basis of accounting is appropriate.
• We have no knowledge of any fraud or suspected fraud that affects the entity and involves:
− Management;
− Employees who have significant roles in internal control; or − Others where the fraud could have a material effect on the financial statements. • We have no knowledge of any instances, that have occurred or are likely to have occurred, of fraud and noncompliance with provisions of laws and regulations that have a material
effect on the financial statements or other financial data significant to the audit objectives, and any other instances that warrant the attention of those charged with governance, whether communicated by employees, former employees, vendors (contractors), analysts, regulators, or others.
• We have no knowledge of any instances that have occurred or are likely to have occurred, of noncompliance with provisions of contracts and grant agreements that has a material effect on the determination of financial statement amounts or other financial data significant to the audit objectives.
• We have no knowledge of any instances that have occurred or are likely to have occurred of abuse that could be quantitatively or qualitatively material to the financial statements or other financial data significant to the audit objectives. • We have a process to track the status of audit findings and recommendations. • We have identified for you all previous audits, attestation engagements, and other studies related to the audit objectives and whether related recommendations have been implemented.
• We have provided views on your reported audit findings, conclusions, and recommendations, as well as our planned corrective actions, for the report. • We have disclosed to you all known actual or possible litigation, claims, and assessments whose effects should be considered when preparing the financial statements. • There have been no communications from regulatory agencies concerning noncompliance with or deficiencies in accounting, internal control, or financial reporting practices. • The entity has no plans or intentions that may materially affect the carrying value or classification of assets and liabilities.
• For nonexchange financial guarantees where we have declared liabilities, the amount of the liability recognized is the discounted present value of the best estimate of the future outflows expected to be incurred as a result of the guarantee. Where there was no best estimate but a range of estimated future outflows has been established, we have recognized the minimum amount within the range.
• We have disclosed to you all significant estimates and material concentrations known to management that are required to be disclosed in accordance with GASB Statement No. 62 (GASB-62), Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements. Significant estimates are estimates at the balance sheet date that could change materially within the next year.
Concentrations refer to volumes of business, revenues, available sources of supply, or markets or geographic areas for which events could occur that would significantly disrupt normal finances within the next year.
• We have identified and disclosed to you the laws, regulations, and provisions of contracts and grant agreements that could have a direct and material effect on financial statement amounts, including legal and contractual provisions for reporting specific activities in separate funds.
• We have disclosed to you all nonexchange financial guarantees, under which we are obligated and have declared liabilities and disclosed properly in accordance with GASB Statement No. 70, Accounting and Financial Reporting for Nonexchange Financial Guarantees, for those guarantees where it is more likely than not that the entity will make a payment on any guarantee.
• There are no:
− Violations or possible violations of laws or regulations, or provisions of contracts or grant agreements whose effects should be considered for disclosure in the financial statements or as a basis for recording a loss contingency, including applicable budget laws and regulations.
− Unasserted claims or assessments that our lawyer has advised are probable of assertion and must be disclosed in accordance with GASB-62. − Other liabilities or gain or loss contingencies that are required to be accrued or disclosed by GASB-62
− Continuing disclosure consent decree agreements or filings with the Securities and Exchange Commission and we have filed updates on a timely basis in accordance with the agreements (Rule 240, 15c2-12).
• The entity has satisfactory title to all owned assets, and there are no liens or encumbrances on such assets nor has any asset or future revenue been pledged as collateral, except as disclosed to you.
• We have complied with all aspects of grant agreements and other contractual agreements that would have a material effect on the financial statements in the event of noncompliance.
Use of a Specialist
• We agree with the findings of specialists in evaluating the entity’s net pension and net other post-employment benefit liabilities and related deferred amounts and have adequately considered the qualifications of the specialist in determining the amounts and disclosures used in the financial statements and underlying accounting records. We did not give or cause any instructions to be given to specialists with respect to the values or amounts derived in an attempt to bias their work, and we are not otherwise aware of any matters that have had an impact on the independence or objectivity of the specialists.
Cybersecurity
• There have been no cybersecurity breaches or other cyber events whose effects should be considered for disclosure in the financial statements, as a basis for recording a loss contingency, or otherwise considered when preparing the financial statements.
Single Audit Report
We confirm, that to the best of our knowledge and belief, having made such inquiries as we considered necessary for the purpose of appropriately informing ourselves as of June 17, 2026:
1. We are responsible for understanding and complying with and have complied with the requirements of the Uniform Guidance.
2. We are responsible for the preparation and presentation of the schedule of expenditures of federal awards in accordance with the Uniform Guidance.
3. We believe the schedule of expenditures of federal awards, including its form and content, is fairly presented in accordance with the Uniform Guidance.
4. As part of your audit, you prepared the draft financial statements and related notes and schedule of expenditures of federal awards. We have designated an individual with suitable skill, knowledge, or experience to oversee your services and have made all management decisions and performed all management functions. We have reviewed, approved, and accepted responsibility for those financial statements and related notes and schedule of expenditures of federal awards.
5. The methods of measurement or presentation have not changed from those used in the prior period.
6. We are responsible for including the auditor’s report on the schedule of expenditures of federal awards in any document that contains the schedule and that indicates that the auditor has reported on such information.
7. We have identified and disclosed all of our government programs and related activities subject to the Uniform Guidance compliance audit.
8. We have notified you of federal awards and funding increments that were received before December 26, 2014 (if any), and differentiated those awards from awards and funding increments received on or after December 26, 2014, and subject to the audit requirements of the Uniform Guidance.
9. When the schedule of expenditures of federal awards is not presented with the audited financial statements, we will make the audited financial statements readily available to the intended users of the schedule of expenditures of federal awards no later than the date of issuance by the entity of the schedule of expenditures of federal awards and the auditor’s report thereon.
10. We have, in accordance with the Uniform Guidance, identified in the schedule of expenditures of federal awards, expenditures made during the audit period for all awards provided by federal agencies in the form of grants, federal cost-reimbursement contracts, loans, loan guarantees, property (including donated surplus property), cooperative agreements, interest subsidies, food commodities, direct appropriations, and other assistance.
11. We have no knowledge of any instances that have occurred or are likely to have occurred, of fraud and noncompliance with provisions of laws and regulations that have
a material effect on the financial statements or other financial data significant to the audit objectives, and any other instances that warrant the attention of those charged with governance, whether communicated by employees, former employees, vendors, regulators, or others.
12. We have no knowledge of any instances, that have occurred or are likely to have occurred, of noncompliance with provisions of contracts and grant agreements that has a material effect on the determination of financial statement amounts or other financial data significant to the audit objectives.
13. We have no knowledge of any instances, that have occurred or are likely to have occurred, of abuse that could be quantitatively or qualitatively material to the financial statements or other financial data significant to the audit objectives.
14. We have a process to track the status of audit findings and recommendations.
15. We have identified for you all previous audits, attestation engagements, and other studies related to the audit objectives and whether related recommendations have been implemented.
16. We have provided to you our interpretations of any compliance requirements that are subject to varying interpretations.
17. We have made available to you all federal awards (including amendments, if any) and any other correspondence relevant to federal programs and related activities that have taken place with federal agencies or pass-through entities.
18. We have received no requests from a federal agency to audit one or more specific programs as a major program.
19. We have identified and disclosed to you all amounts questioned and any known noncompliance with the direct and material compliance requirements of federal awards, including the results of other audits or program reviews, or stated that there was no such noncompliance. We also know of no instances of noncompliance with direct and material compliance requirements occurring subsequent to the period covered by the auditor’s report.
20. We have disclosed to you any communications from federal awarding agencies and pass-through entities concerning possible noncompliance with the direct and material compliance requirements, including communications received from the end of the period covered by the compliance audit to the date of the auditor’s report, if applicable.
21. We have made available to you all documentation related to compliance with the direct and material compliance requirements, including information related to federal program financial reports and claims for advances and reimbursements.
22. Federal program financial reports and claims for advances and reimbursements are supported by the books and records from which the basic financial statements have been prepared and are prepared on a basis consistent with the schedule of expenditures of federal awards.
23. The copies of federal program financial reports provided to you are true copies of the reports submitted, or electronically transmitted, to the respective federal agency or passthrough entity, as applicable.
24. We have monitored subrecipients, as necessary, to determine if they have expended subawards in compliance with federal statutes, regulations, and the terms and conditions of the subaward and have met the other pass-through entity requirements of the Uniform Guidance.
25. We have considered the results of subrecipients’ audits and have made any necessary adjustments to our own books and records.
26. We have properly classified amounts claimed or used for matching in accordance with related guidelines in the Uniform Guidance as applicable.
27. We have charged costs to federal awards in accordance with applicable cost principles.
28. We are responsible for and have accurately prepared the summary schedule of prior audit findings to include all findings required to be included by the Uniform Guidance, and we have provided you with all information on the status of the follow-up on prior audit findings by federal awarding agencies and pass-through entities, including all management decisions.
29. We have disclosed to you the findings received and related corrective actions taken for previous audits, attestation engagements, and internal or external monitoring that directly relate to the objectives of the compliance audit, including findings received and corrective actions taken from the end of the period covered by the compliance audit to the date of the auditor’s report.
30. The reporting package does not contain personally identifiable information.
31. We have disclosed all contracts or other agreements with service organizations and disclosed to you all communications from these service organizations relating to noncompliance at the organizations.
32. We have disclosed to you the nature of any subsequent events that provide additional evidence with respect to conditions that existed at the end of the reporting period that affect noncompliance during the reporting period, if applicable.
In addition:
33. We are responsible for understanding and complying with the requirements of federal statutes, regulations, and the terms and conditions of federal awards related to each of our federal programs and have identified and disclosed to you the federal statutes, regulations, and the terms and conditions of federal awards that are considered to have a direct and material effect on each major federal program; and we have complied with these direct and material compliance requirements.
34. We are responsible for establishing and maintaining, and have established and maintained, effective internal control over compliance for federal programs that provide reasonable assurance that we are managing our federal awards in compliance with
federal statutes, regulations, and the terms and conditions of the federal award that could have a material effect on our federal programs. Also, no changes have been made in the internal control over compliance or other factors that might significantly affect internal control, including any corrective action taken by management with regard to significant deficiencies and material weaknesses in internal control over compliance have occurred subsequent to the period covered by the auditor’s report.
35. We are responsible for and have accurately completed the appropriate sections of the Data Collection Form and we are responsible for taking corrective action on audit findings of the compliance audit and have developed a corrective action plan that meets the requirements of the Uniform Guidance.
36. All electronic documents provided to you are true copies of the original documents.
To the best of our knowledge and belief, no events have occurred subsequent to the date of the schedule of expenditures of federal awards and through the date of this letter that would require adjustment to or disclosure in the aforementioned schedule of expenditures of federal awards.
Supplementary Information in Relation to the Financial Statements as a Whole With respect to supplementary information accompanying the financial statements:
• We acknowledge our responsibility for the presentation of the supplementary information in accordance with accounting principles generally accepted in the United States of America.
• We believe the supplementary information, including its form and content, is fairly presented in accordance with accounting principles generally accepted in the United States of America.
• The methods of measurement or presentation have not changed from those used in the prior period.
• We believe any significant assumptions or interpretations underlying the measurement or presentation of the supplementary information, and the basis for our assumptions and interpretations, are reasonable and appropriate in the circumstances. • When the supplementary information is not presented with the audited financial statements, management will make the audited financial statements readily available to the intended users of the supplementary information no later than the date of issuance by the entity of the supplementary information and the auditor’s report thereon. • We acknowledge our responsibility to include the auditor’s report on the supplementary information in any document containing the supplementary information and that indicates the auditor reported on such supplementary information. • We acknowledge our responsibility to present the supplementary information with the audited financial statements or, if the supplementary information will not be presented with the audited financial statements, to make the audited financial statements readily available
to the intended users of the supplementary information no later than the date of issuance by the entity of the supplementary information and the auditor’s report thereon.
Required Supplementary Information
With respect to the required supplementary information accompanying the financial statements:
• We acknowledge our responsibility for the presentation of the required supplementary information in accordance with U.S. GAAP.
• We believe the required supplementary information, including its form and content, is measured and fairly presented in accordance with U.S. GAAP. • The methods of measurement or presentation have not changed from those used in the prior period.
• We believe the significant assumptions or interpretations underlying the measurement or presentation of the required supplementary information, and the basis for our assumptions and interpretations, are reasonable and appropriate in the circumstances.
Accounting Estimates and Related Disclosures
• The significant judgments made in making the accounting estimates have taken into account all relevant information of which we are aware. • We have consistently and appropriately selected and applied methods, assumptions, and data when making accounting estimates.
• The assumptions we used in making and disclosing accounting estimates appropriately reflect our intent and ability to carry out specific courses of action on behalf of the entity, when relevant to the accounting estimates and disclosures. • The disclosures related to accounting estimates, including those disclosures describing estimation uncertainty, are complete and are reasonable in the context of the applicable financial reporting framework.
• We have obtained and applied appropriate specialized skills and expertise in making accounting estimates, if needed.
• We are not aware of any events subsequent to the date of the financial statements that require adjustment to our accounting estimates and related disclosures included in the financial statements.
Shannon Esenwein, Director of Finance
Tel. 909-889-0871 | www.ramscpa.net | 735 E. Carnegie Dr. Suite 100, San Bernardino, CA 92408
CERTIFIED PUBLIC ACCOUNTANTS
-1-
Independent Accountant’s Report
To the Honorable City Council
City of La Mesa, California
We have performed the procedures enumerated below to the accompanying Appropriations Limit Worksheet of the City of La Mesa, (the entity) for the year ended June 30, 2025. The management of the entity is responsible for the accompanying Appropriations Limit Worksheet.
The entity has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of meeting the requirements of Section 1.5 of Article XIII-B of the California Constitution. These procedures, which were suggested by the League of California Cities and presented in the publication entitled Agreed-upon Procedures Applied to the Appropriations Limitation Prescribed by Article XIII-B of the California Constitution, were performed solely to assist you in meeting the requirements. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.
The procedures and the associated findings are as follows:
1. We obtained the completed worksheets and compared the limit and annual adjustment factors included in those worksheets to the limit and annual adjustment factors that were adopted by resolution of the City Council. We also compared the population and inflation options included in the aforementioned documents to those that were selected by a recorded vote of the City Council.
Finding: No exceptions were noted as a result of our procedures.
2. For the accompanying Appropriations Limit Worksheet, we added last year’s limit to total adjustments and agreed the resulting amount to this year’s limit.
Finding: No exceptions were noted as a result of our procedures.
3. We agreed the current year information presented in the accompanying Appropriations Limit Worksheet to the other documents referenced in number one above.
Finding: No exceptions were noted as a result of our procedures.
-2-
4. We agreed the prior year appropriations limit presented in the accompanying Appropriations Limit Worksheet to the prior year appropriations limit adopted by the City Council during the prior year.
Finding: No exceptions were noted as a result of our procedures.
We were engaged by the entity to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review, the objective of which would be the expression of an opinion or conclusion, respectively, on accompanying Appropriations Limit Worksheet for the year ended June 30, 2025. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.
We are required to be independent of the entity and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.
This report is intended solely for the information and use of the entity Council and management of the City of La Mesa, and is not intended to be and should not be used by anyone other than these specified parties. However, this report is a matter of public record and its distribution is not limited.
San Bernardino, California
June 17, 2026
-3-
City of La Mesa
APPROPRIATIONS LIMIT WORKSHEET
2024 – 2025
Growth in non-residential assessed values
due to new construction 0.1290
Change in City Population 0.07%
Growth in non-residential assessed values
due to new construction - Converted to a ratio 1.1290
Change in County Population -
Converted to a ratio 1.0007
Calculation of factor for ratio of change
(1.129 x 1.0007) 1.1298
2023 - 2024 Limit 1,401,062,353 $
2024 - 2025 Limit
($1,401,062,353 x 1.129 x 1.0007) 1,582,906,656 $ *
* allow for rounding
DATE: June 23, 2026
TO: Mayor and Members of the City Council
FROM: Megan Wiegelman, City Clerk
VIA: Greg Humora, City Manager
SUBJECT: CONSIDERATION OF APPOINTING A SECOND ALTERNATE
REPRESENTATIVE TO THE SAN DIEGO METRO WASTEWATER
JOINT POWERS AUTHORITY/COMMISSION
The City currently appoints a primary representative and first alternate representative to serve on the San Diego Metro Wastewater Joint Powers Authority (JPA)/Commission.
To provide additional flexibility and help ensure the City maintains representation at JPA meetings, the Council is being asked to consider the appointment of a second alternate representative.
On occasion, both the primary representative and first alternate may be unavailable to attend a San Diego Metro Wastewater JPA/Commission meeting. Establishing a second alternate would help ensure the City remains represented and able to participate in discussions and actions before the San Diego Metro Wastewater JPA/Commission.
This approach is consistent with the City's representation on the San Diego Association of Governments (SANDAG), where the City has appointed a primary representative, first alternate, and second alternate to help ensure continuous representation at meetings.
Staff recommends that the Council appoint a second alternate representative to serve in the absence of both the primary representative and first alternate.
REPORT to the MAYOR and MEMBERS of the CITY COUNCIL
From the CITY MANAGER
DATE: June 23, 2026
SUBJECT: RESOLUTION AUTHORIZING AN AGREEMENT WITH
THE SAN DIEGO EAST COUNTY ECONOMIC
DEVELOPMENT COUNCIL FOR THE ADMINISTRATION
OF THE LEAP FORWARD PROGRAM
ISSUING DEPARTMENT: City Manager’s Office
Recommendation:
Staff recommends that the City Council approve the resolution authorizing an agreement with the San Diego East County Economic Development Council for the administration of the LEAP Forward Program.
Fiscal Impact:
No General Fund allocation is being requested. The proposed agreement will utilize the remaining $45,000 in American Rescue Plan Act (ARPA) funding previously allocated for economic development programming under the LEAP initiative.
City’s Strategic Goals:
Ensure a strong financial outlook through careful planning, sustainable service levels, and fiscal sustainability.
BACKGROUND:
In 2022, the City Council established the La Mesa Entrepreneurship Accelerator Program (LEAP) using American Rescue Plan Act (ARPA) funding to support post-pandemic economic recovery. The program aimed to encourage entrepreneurship, activate vacant commercial spaces, and assist small businesses impacted by COVID-19.
Report to Mayor and Councilmembers
Date: June 23, 2026
Page: 2 of 3
During the initial phases of the program, the City partnered with the East County Economic Development Council (ECEDC) and the Small Business Development Center (SBDC) to support entrepreneurs seeking to open new brick-and-mortar businesses in La Mesa. Participants completed business development training, received one-on-one advising, and became eligible for grants to offset startup costs.
Through these early phases, 18 new businesses successfully opened in La Mesa, helping fill commercial vacancies, expand local economic activity, and promote business creation within the community.
As the program progressed, staff evaluated changing market conditions and identified a significant shift in the local commercial environment. Commercial vacancy rates declined substantially, reducing the number of available storefronts for new entrepreneurs.
In response to these conditions, the City strategically refocused LEAP away from startup support and business attraction and instead prioritized assistance for existing La Mesa businesses.
In 2024, the City launched an updated LEAP model providing direct support to 33 existing businesses through grant funding and technical assistance intended to strengthen operational sustainability, improve business performance, and increase revenue generation.
DISCUSSION:
The proposed LEAP Forward Program represents the final phase of the City’s ARPA-funded small business assistance initiative and builds on the success and lessons learned from previous LEAP cohorts.
LEAP Forward is designed to help existing La Mesa businesses strengthen operations, increase revenues, improve long-term sustainability, and remain competitive in a challenging economic environment.
The program will utilize the remaining $45,000 in ARPA funding to support 20 La Mesa businesses, organized into two cohorts of 10 businesses each.
Participants will receive individualized technical assistance and structured business development services, including:
Dedicated case management
Individualized advising and coaching
A minimum of three hours of one-on-one advising
Support with business planning
Assistance navigating licensing and permitting
Report to Mayor and Councilmembers
Date: June 23, 2026
Page: 3 of 3
Participants will also complete a structured business development curriculum delivered in partnership with the Small Business Development Center (SBDC), covering key operational topics:
Developing Financial Projections for Your Business: Guidance on financial forecasting, budgeting, and improving financial decision-making.
Social Media Strategies for Business Growth: Foundational marketing techniques to boost online visibility, customer engagement, and revenue opportunities.
Artificial Intelligence for Small Business Operations: Practical applications of AI tools to automate tasks, streamline operations, and improve efficiency.
Human Resources Fundamentals for Small Businesses: Core requirements and best practices related to employment laws, hiring, compliance, and workforce management.
This final phase shifts the City’s focus from direct grant assistance to long-term capacity building, ensuring businesses receive the tools and knowledge needed to remain competitive and financially sustainable.
CONCLUSION:
Staff recommends that the City Council approve the resolution authorizing an agreement with the San Diego East County Economic Development Council for the administration of the LEAP Forward Program.
Reviewed by: Respectfully submitted by:
____________________ ____________________________
Greg Humora Amanda Lee
City Manager Assistant City Manager
Attachments:
A. Agreement with the San Diego East County Economic Development Council for the Administration of the LEAP Forward Program
B. Resolution authorizing agreement with the San Diego East County Economic Development Council for the Administration of the Leap Forward Program
RESOLUTION NO. 2026-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA MESA
AUTHORIZING AN AGREEMENT WITH THE SAN DIEGO EAST COUNTY
ECONOMIC DEVELOPMENT COUNCIL FOR THE ADMINISTRATION OF THE
LEAP FORWARD PROGRAM
________________________________________________________________ WHEREAS, on March 11, 2021, the President of the United States signed the American Rescue Plan Act of 2021 (“ARPA”) into law;
WHEREAS, ARPA provides funding for local governments to address the negative economic impacts of the Covid 19 pandemic, provides support for eligible workers, provides fiscal recovery funds to replace lost municipal revenues, and provides funding for capital infrastructure projects related to water, sewer, and broadband;
WHEREAS, ARPA enabled local governments to create specific programs that responded to and further enabled local recovery efforts consistent with guidance provided by the Federal Treasury;
WHEREAS, La Mesa received $10,826,584 in ARPA funding from the Federal Treasury; WHEREAS, the Council established the Council American Rescue Plan Act Ad-hoc Subcommittee (“Subcommittee”) to recommend expenditure phases based on eligible programs; WHEREAS, the Council authorized four total phases of ARPA funding appropriations recommended by the Subcommittee, including a second phase that appropriated $800,000 for the La Mesa Entrepreneurship Accelerator Program (“LEAP”); WHEREAS, after the conclusion of the LEAP program, a remaining balance of $45,000 exists in appropriated ARPA funding for LEAP; and
WHEREAS, the City and San Diego East County Economic Development Council desire to utilize the remaining $45,000 in appropriated ARPA funding to enter into an Agreement for administration of the LEAP Forward program.
NOW, THEREFORE, BE IT AND IT IS HEREBY RESOLVED by the City Council of the City of La Mesa, California, that the City Council approves an agreement with San Diego East County Economic Development Council for the administration of the LEAP Forward program.
PASSED AND ADOPTED at a Regular meeting of the City Council of the City of La Mesa, California, held the 23rd day of June 2026, 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. 2026- , 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)
City of La Mesa
SERVICES AGREEMENT
ADMINISTRATION OF LEAP FORWARD PROGRAM
Agreement: Administration of LEAP Forward Program
Version 2025.2 2
TABLE OF CONTENTS
1. STANDARD AGREEMENT FOR PROFESSIONAL SERVICES ...............................
2. ENGAGEMENT OF CONTRACTOR............................................................................
3. SERVICES TO BE PERFORMED BY CONTRACTOR ..............................................
4. LOCATION OF SERVICES...........................................................................................
5. KEY PROJECT PERSONNEL .......................................................................................
6. CITY REPRESENTATION ............................................................................................
7. RESPONSIBILITIES OF THE CITY .............................................................................
8. PERFORMANCE SCHEDULE......................................................................................
9. ITEMS TO BE DELIVERED TO CITY.........................................................................
10. COMPENSATION TO CONTRACTOR........................................................................
11. NOTICES.........................................................................................................................
12. HOLD HARMLESS ........................................................................................................
13. INSURANCE...................................................................................................................
14. TERMINATION OF AGREEMENT FOR CAUSE OR CONVENIENCE...................
15. DISPUTE RESOLUTION...............................................................................................
16. CONTRACTORS ............................................................................................................
17. INTEREST OF MEMBERS OF THE CITY...................................................................
18. INTEREST OF CONTRACTOR AND EMPLOYEES;.................................................
19. INDEPENDENT CONTRACTOR..................................................................................
20. PERS ELIGIBILITY INDEMNIFICATION .................................................................
21. CONTRACTOR NOT AGENT.......................................................................................
22. FACILITIES AND EQUIPMENT ..................................................................................
23. RECORDS.......................................................................................................................
24. DESIGN CHANGES OR REVISIONS...........................................................................
25. OWNERSHIP OF WORK...............................................................................................
26. INTEGRATION; AMENDMENTS ................................................................................
27. ADDITIONAL SERVICES OUTSIDE SCOPE .............................................................
28. CHANGES.......................................................................................................................
29. NON-DISCLOSURE.......................................................................................................
30. JOB SITE SAFETY.........................................................................................................
31. BUSINESS LICENSE .....................................................................................................
32. PREVAILING WAGES FOR PUBLIC WORKS PROJECTS.......................................
33. CONFLICT BETWEEN AGREEMENT AND OTHER DOCUMENTS ......................
34. OTHER PUBLIC AGENCIES ........................................................................................
35. SIGNATURES.................................................................................................................
Attachments: Proposal & Scope of Work
Agreement: Administration of LEAP Forward Program
Version 2025.2 3
1. STANDARD AGREEMENT FOR PROFESSIONAL SERVICES
Between the City of La Mesa and
San Diego East County Economic Development Council
for the Administration of the LEAP Forward Program
This Agreement is entered into by City of La Mesa as of ____________, by and between the City of La Mesa, a municipal corporation, hereinafter referred to as "the City", and San Diego East County Economic Development Council, hereinafter referred to as "Contractor." WITNESSETH THAT:
WHEREAS, the City has need for professional services for administration of the LEAP Forward program and is willing to compensate Contractor for such services; WHEREAS, the City desires to engage Contractor to render certain technical and professional services for the administration of the LEAP Forward program; and WHEREAS, Contractor is qualified to provide said professional services and the City has allocated funds.
NOW THEREFORE, the parties do mutually agree as follows:
2. ENGAGEMENT OF CONTRACTOR
The City hereby agrees to engage Contractor and Contractor hereby agrees to perform the services set forth in this Agreement. This Agreement shall be for a term from the execution date of the Agreement through June 30, 2027 and may be renewed for an additional one-year term by mutual written consent of both parties. The City Manager shall have sole and exclusive right to exercise any options contained in this Agreement on behalf of the City.
3. SERVICES TO BE PERFORMED BY CONTRACTOR
Contractor shall commence performance of the Project upon execution of this Agreement by both parties. The term "Project" as used in this Agreement shall include all of the tasks and items listed and described in Exhibit "A", attached hereto and incorporated herein as part of this Agreement.
4. LOCATION OF SERVICES
Contractor agrees to provide the services at 8054 Allison Avenue (EOC/Council Overflow Room) or 8085 University Avenue (PD Community Room) within the City for the full term of this Agreement. No changes will be made without prior written approval by the City.
Agreement: Administration of LEAP Forward Program
Version 2025.2 4
5. KEY PROJECT PERSONNEL
Contractor agrees to provide the services of Matt Sanford, President and CEO, Alex Eberhart, Director, and Sarah Gyselbrecht, Program Manager, respectively, for the full term of this Agreement. No substitutions will be made without prior written approval by the City. The City reserves the right to request specific qualifications for personnel substituted under this section.
6. CITY REPRESENTATION
The City Manager for the City of La Mesa, or their designated representative, shall represent the City in all matters pertaining to the services rendered pursuant to this Agreement and shall administer said Agreement on behalf of the City. This person shall hereinafter be referred to as the "City's Representative."
7. RESPONSIBILITIES OF THE CITY
The City will provide the Contractor, or cause to be provided with, the following documents, services and site information, at no charge to the Contractor.
A. Any necessary electronic files, documents, information and/or data as needed for the Contractor’s performance in carrying out the task and items listed and described in Exhibit “A” attached hereto and incorporated herein as part of this Agreement.
B. Reasonable access and scheduling of the Council Overflow/Emergency Operations Center Room located at 8054 Allison Avenue and La Mesa Police Department Community Room located at 8085 University Avenue for the LEAP Forward curriculum.
8. PERFORMANCE SCHEDULE
Both Contractor and the City recognize that time is of the essence in the completion of this work and the following schedule is dependent upon timely actions by the Contractor and the City.
Accordingly, the Contractor shall complete all of the work outlined in Exhibit "A" and as scheduled therein.
The Contractor shall not be responsible for damages or be in default or deemed to be in default by reason of strikes, lockouts, accidents, or acts of God, or failure of City to furnish timely information or to approve or disapprove Contractor's work promptly, or delay or faulty performance by City, or governmental agencies.
Contractor shall devote such time to the performance of services pursuant to this Agreement as may be reasonably necessary for satisfactory performance of Contractor's obligations pursuant to this Agreement.
9. ITEMS TO BE DELIVERED TO CITY
The following items shall be delivered by Contractor to the City of La Mesa:
A. See Exhibit "A"
Agreement: Administration of LEAP Forward Program
Version 2025.2 5
10. COMPENSATION TO CONTRACTOR
The amount to be billed shall be based on the satisfactory completion of activities listed in Exhibit “A” attached hereto and incorporated herein as part of this Agreement, as deemed by the City Representative of the City of La Mesa or his/her designee.
The total fee for professional services shall be billed with a total amount not to exceed $45,000 as described on page 1 of Exhibit "A". The Project Milestone Payment Schedule shall be as follows:
• Fifty percent (50%) payment of $22,500 due to Contractor at execution of Agreement • Fifty percent (50%) payment of $22,500 due to Contractor at launch of Cohort 1 The City shall compensate Contractor for the services performed hereunder within thirty (30) calendar days of receipt of Contractor's invoice for the services performed.
The City shall promptly review invoicing and notify Contractor of any objection thereto in writing within fifteen (15) days of receipt of the invoice; absent such objection the invoice shall be deemed proper and acceptable.
In the event that any undisputed invoice is not paid within thirty (30) calendar days after receipt of the invoice by the City, it shall commence bearing interest on the date that the invoice was rendered at the rate of 1% per month and the City agrees to pay all accrued interest, together with the charges for services rendered.
11. NOTICES
Notices and requests to the City or Contractor shall be delivered at the following addresses, either served personally on the designated representative or by U.S. Postal Service at the following addresses:
City:
Greg Humora, City Manager
City of La Mesa
8130 Allison Avenue, La Mesa, CA 91942
(619) 667-1105
[email protected]
Contractor:
Matt Sanford, President and CEO
San Diego East County Economic Development Council
127 E. Lexington Ave., El Cajon, CA 92020
(619) 258-3670
Agreement: Administration of LEAP Forward Program
Version 2025.2 6
[email protected]
12. HOLD HARMLESS
To the furthest extent allowed by law, Contractor shall indemnify, hold harmless and defend City and each of its officers, officials, employees, agents and volunteers from any and all loss, liability, fines, penalties, forfeitures, costs and damages (whether in contract, tort or strict liability, including but not limited to personal injury, death at any time and property damage), and from any and all claims, demands and actions in law or equity (including reasonable attorney's fees and litigation expenses) that arise out of, pertain to, or relate to the negligence, recklessness or willful misconduct of Contractor, its principals, officers, employees, agents or volunteers in the performance of this Agreement.
If Contractor should subcontract all or any portion of the services to be performed under this Agreement, Contractor shall require each subcontractor to indemnify, hold harmless and defend City and each of its officers, officials, employees, agents and volunteers in accordance with the terms of the preceding paragraph.
This section shall survive termination or expiration of this Agreement.
13. INSURANCE
Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder and the results of that work by the Contractor, his agents, representatives, employees or subcontractors.
The certificate holder should be stated as:
City of La Mesa
Attn: Risk Management
8130 Allison Avenue, La Mesa, CA 91942
MINIMUM SCOPE AND LIMIT OF INSURANCE
Coverage shall be at least as broad as:
A. Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering CGL on an “occurrence” basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than $2,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit.
B. Automobile Liability: ISO Form Number CA 00 01 covering any auto (Code 1), or if Contractor has no owned autos, hired, (Code 8) and non-owned autos (Code 9), with limit no less than $1,000,000 per accident for bodily injury and property damage.
Agreement: Administration of LEAP Forward Program
Version 2025.2 7
C. Sexual Abuse or Molestation (SAM) Liability (applicable to programs/services working with youth): If the CGL policy referenced above is not endorsed to include affirmative coverage for sexual abuse or molestation, Contractor shall obtain and maintain a policy covering Sexual Abuse and Molestation with a limit no less than $1,000,000 per occurrence or claim.
D. Workers’ Compensation: as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with limit of no less than $1,000,000 per accident for bodily injury or disease.
E. Professional Liability (Errors and Omissions): Insurance appropriate to the Contractor’s profession, with limit no less than $2,000,000 per occurrence or claim, $2,000,000 aggregate. (If applicable)
F. If the Contractor maintains broader coverage and/or higher limits than the minimums shown above, the City requires and shall be entitled to the broader coverage and/or the higher limits maintained by the contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.
G. Cyber Insurance (If applicable):
Consultant or Vendor shall procure and maintain for the duration of the contract insurance against claims for security breaches, system failures, injuries to persons, damages to software, or damages to property (including computer equipment) which may arise from or in connection with the performance of the work hereunder by the Consultant, its agents, representatives, or employees. Consultant shall procure and maintain for the duration of the contract insurance claims arising out of their services and including, but not limited to loss, damage, theft or other misuse of data, infringement of intellectual property, invasion of privacy and breach of data.
Cyber Insurance, with limits not less than $2,000,000 per occurrence or claim, $2,000,000 aggregate. Coverage shall be sufficiently broad to respond to the duties and obligations as is undertaken by Consultant in this agreement and shall include, but not be limited to, claims involving security breach, system failure, data recovery, business interruption, cyber extortion, social engineering, infringement of intellectual property, including but not limited to infringement of copyright, trademark, trade dress, invasion of privacy violations, information theft, damage to or destruction of electronic information, release of private information, and alteration of electronic information. The policy shall provide coverage for breach response costs, regulatory fines and penalties as well as credit monitoring expenses.
Technology Professional Liability Errors and Omissions Insurance appropriate to the Consultant’s profession and work hereunder, with limits not less than $2,000,000 per occurrence. Coverage shall be sufficiently broad to respond to the duties and obligations as is undertaken by the Consultant in this agreement and shall include, but not be limited to, claims involving security breach, system failure, data recovery, business interruption, cyber extortion, social engineering, infringement of intellectual property, including but not
Agreement: Administration of LEAP Forward Program
Version 2025.2 8
limited to infringement of copyright, trademark, trade dress, invasion of privacy violations, information theft, damage to or destruction of electronic information, release of private information, and alteration of electronic information. The policy shall provide coverage for breach response costs, regulatory fines and penalties as well as credit monitoring expenses. a. The Policy shall include, or be endorsed to include, property damage liability coverage for damage to, alteration of, loss of, or destruction of electronic data and/or information “property” of the Agency in the care, custody, or control of the Consultant.
If the Consultant maintains broader coverage and/or higher limits than the minimums shown above, the City requires and shall be entitled to the broader coverage and/or the higher limits maintained by the Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.
OTHER INSURANCE PROVISIONS
The insurance policies are to contain, or be endorsed to contain, the following provisions:
Additional Insured Status
The City, its officers, officials, employees, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Contractor including materials, parts, or equipment furnished in connection with such work or operations. Coverage can be provided in the form of an endorsement to the Contractor’s insurance (at least as broad as ISO Form CG 20 10 11 85 or the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 if a later edition is used).
Primary Coverage
For any claims related to this contract, the Contractor’s insurance coverage shall be primary and non-contributory and at least as broad as ISO CG 20 01 12 19 as respects the Entity, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the Contractor’s insurance and shall not contribute with it. This requirement shall also apply to any Excess or Umbrella liability policies.
Umbrella or Excess Policy
The Contractor may use Umbrella or Excess Policies to provide the liability limits as required in this agreement. The Umbrella or Excess policies shall be provided on a true “following form” or broader coverage basis, with coverage at least as broad as provided on the underlying Commercial General Liability insurance.
Notice of Cancellation
Each insurance policy required above shall provide that coverage shall not be canceled, nonrenewed, reduced in coverage or in limits except after 30 calendar day written notice has been given to City. Upon issuance by the insurer, broker, or agent of a notice of cancellation, nonrenewal, or reduction in coverage or in limits, Contractor shall furnish City with a new certificate
Agreement: Administration of LEAP Forward Program
Version 2025.2 9
and applicable endorsements for such policy(ies). In the event any policy is due to expire during the work to be performed for City, Contractor shall provide a new certificate, and applicable endorsements, evidencing renewal of such policy not less than 15 calendar days prior to the expiration date of the expiring policy.
Waiver of Subrogation
Contractor hereby grants to City a waiver of any right to subrogation which any insurer of said Contractor may acquire against the City by virtue of the payment of any loss under such insurance.
Contractor agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer.
Self-Insured Retentions
Self-insured retentions must be declared to and approved by the City. The City may require the Contractor to purchase coverage with a lower retention or provide proof of ability to pay losses and related expenses within the retention. The policy language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named insured or City.
Acceptability of Insurers
Insurance is to be placed with insurers authorized to conduct business in the state with a current A.M. Best’s rating of no less than A:VII, unless otherwise acceptable to the City.
Claims Made Policies (applicable only to professional liability, see below) If any of the required policies provide claims-made coverage:
1. The Retroactive Date must be shown and must be before the date of the contract or the beginning of contract work.
2. Insurance must be maintained, and evidence of insurance must be provided for at least five (5) years after completion of the contract of work.
3. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a Retroactive Date prior to the contract effective date, the Contractor must purchase “extended reporting” coverage for a minimum of five (5) years after completion of work.
Verification of Coverage
Contractor shall furnish the City with original certificates and amendatory endorsements or copies of the applicable policy language effecting coverage required by this clause All documents are to be received and approved by the City before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the Contractor’s obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time. These requirements shall survive expiration or termination of the Agreement.
Agreement: Administration of LEAP Forward Program
Version 2025.2 10
Special Risks or Circumstances
City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.
If at any time during the life of this Agreement or any extension, Contractor or any of its subcontractors fail to maintain any required insurance in full force and effect, all work under this Agreement shall be discontinued immediately, and all payments due or that become due to Contractor shall be withheld until notice is received by City that the required insurance has been restored to full force and effect and that the premiums therefore have been paid for a period satisfactory to City. Any failure to maintain the required insurance shall be sufficient cause for City to terminate this Agreement. No action taken by City hereunder shall in any way relieve Contractor of its responsibilities under this Agreement.
The fact that insurance is obtained by Contractor shall not be deemed to release or diminish the liability of Contractor, including, without limitation, liability under the indemnity provisions of this Agreement. The duty to indemnify City and its elected officials, officers, officials, employees, agents and volunteers shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by Contractor. Approval or purchase of any insurance contracts or policies shall in no way relieve from liability nor limit the liability of Contractor, its principals, officers, employees, agents, persons under the supervision of Contractor, vendors, suppliers, invitees, Contractors, subcontractors, or anyone employed directly or indirectly by any of them.
If Contractor should subcontract all or any portion of the services to be performed under this Agreement, Contractor shall require each subcontractor to provide insurance protection in favor of City, its elected officials, officers, officials, employees, agents and volunteers in accordance with the terms of each of the preceding paragraphs, except that the subcontractors' certificates and endorsements shall be on file with Contractor and City prior to the commencement of any work by the subcontractor.
14. TERMINATION OF AGREEMENT FOR CAUSE OR CONVENIENCE
If, through any cause, the Contractor shall fail to fulfill in timely and proper manner their obligations under this Agreement, or if the Contractor shall violate any of the covenants, agreements, or stipulations of this Agreement, the City shall thereupon have the right to terminate this Agreement immediately by giving written notice to the Contractor of such termination and specifying the effective date thereof. In such event, all finished or unfinished documents, data, studies, surveys, drawings, maps, models, photographs and reports prepared by the Contractor under this Agreement shall, at the option of the City, become its property and the Contractor shall be entitled to receive just and equitable compensation for any work satisfactorily completed hereunder.
In addition to termination for cause, the City may terminate this Agreement for City’s convenience upon not less than fifteen (15) days written notice to Contractor. Upon receipt of said notice, the Contractor shall immediately cease all work under this Agreement unless said notice provides
Agreement: Administration of LEAP Forward Program
Version 2025.2 11
otherwise. If this Agreement is terminated as provided in this paragraph for City’s convenience, the Contractor shall be required to provide to City all finished or unfinished documents, data, studies, services, etc., prepared by the Contractor as may be requested by City and such work shall become City’s property upon payment to Contractor for the value of the work performed, less payments of compensation previously made.
Notwithstanding the above, the Contractor shall not be relieved of liability to the City for damages sustained by the City by virtue of any breach of the Agreement by the Contractor, and the City may withhold any payments to the Contractor for the purpose of set-off until such time as the exact amount of damages due the City from the Contractor is determined.
15. DISPUTE RESOLUTION
The City shall require that all Contractors agree to submit any unresolved claims, counterclaims, disputes, controversies and other matters between them and the City or the Contractor and/or any subcontractors of any tier arising out of or relating to their agreement with the City or the breach thereof (“disputes”) first to mediation and then if not resolved, to non-binding arbitration prior to initiating suit or judicial proceeding.
If applicable – As provided in Public Contract Code section 9204, any claim filed by the Contractor on a public works project shall be reviewed by the City with 45 days and a written statement will be provided to the Contractor identifying what portion of the claim is disputed and what portion is undisputed. Upon receipt of a claim, the City and the Contractor may, by mutual agreement, extend the time period or it may be extended to allow City Council approval. The Contractor shall include reasonable documentation to support the claim. Any payment due on an undisputed portion of the claim shall be processed and made within 60 days after the City issues its written statement.
16. CONTRACTORS
Contractor will utilize the services of the following subcontractors during the course of this study:
None.
Payment for such services shall be the responsibility of the Contractor. No substitution of proposed subcontractors shall be made without prior written approval by the City.
None of the services covered by the Agreement shall be subcontracted without the prior consent of the City. The Contractor shall be as fully responsible to the City for the acts and omissions of their subcontractors, and of persons either directly or indirectly employed by them, as they are for the acts and omissions of persons directly employed by them. The Contractor shall insert in each subcontract appropriate provisions requiring compliance with the labor standards provisions of this Agreement.
Contractor shall not assign, delegate, or transfer this Agreement or any work hereunder, nor assign any monies due or to become due hereunder, except as expressly stated herein. In no event shall any contractual relation be created between any third party and the City without prior written
Agreement: Administration of LEAP Forward Program
Version 2025.2 12
consent of the City. A consent to one assignment shall not be deemed to be consent to any subsequent assignment.
17. INTEREST OF MEMBERS OF THE CITY
No member of the governing body of the City and no other officer, employee, or agent of the City who exercises any functions or responsibilities in connection with the planning and carrying out of the program, shall have any personal financial interest, direct or indirect, in this Agreement; and the Contractor shall take appropriate steps to assure compliance.
18. INTEREST OF CONTRACTOR AND EMPLOYEES;
STATEMENT OF ECONOMIC INTERESTS
The Contractor covenants that they presently have no interest and shall not acquire interest, direct or indirect, in the study area or any parcels therein or any other interest which would conflict in any manner or degree with the performance of their services hereunder. The Contractor further covenants that in the performance of this Agreement, no person having any such interest shall be employed. City may require Contractor to complete and submit a Form 700, Statement of Economic Interests, in accordance with applicable law, to City Clerk.
19. INDEPENDENT CONTRACTOR
At all times during the term of this Agreement, Contractor shall be an independent contractor and shall not be an employee of City. City shall have the right to control Contractor only insofar as the results of Contractor's services rendered pursuant to this Agreement; however, City shall not have the right to control the means by which Contractor accomplishes services rendered pursuant to this Agreement.
20. PERS ELIGIBILITY INDEMNIFICATION
In the event that Contractor’s employee and/or agent providing services under this Agreement claims or is determined by a court of competent jurisdiction or the California Public Employees Retirement System (PERS) to be eligible for enrollment in PERS of the City, Contractor shall indemnify, defend, and hold harmless City for the payment of any employer and employee contributions for PERS benefits on behalf of the employee as well as for payment of any penalties and interest on such contributions which would otherwise be the responsibility of the City.
Notwithstanding any other agency, state or federal policy, rule, regulation, law or ordinance to the contrary, Contractor’s employees providing service under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any claims to, any compensation and benefit including but not limited to eligibility to enroll in PERS as an employee of City and entitlement to any contributions to be paid by City for employer contributions and/or employee contributions for PERS benefits.
Agreement: Administration of LEAP Forward Program
Version 2025.2 13
21. CONTRACTOR NOT AGENT
Except as City may specify in writing, Contractor shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever as an agent. Contractor shall have no authority, express or implied, pursuant to this Agreement to bind City to any obligation whatsoever.
22. FACILITIES AND EQUIPMENT
Contractor shall, at its sole cost and expense, furnish all facilities and equipment which may be required for furnishing services pursuant to this Agreement.
23. RECORDS
Contractor shall maintain adequate records to permit inspection audit of Contractor's time-andmaterial charges under this Agreement. Contractor shall make such records available to the City and to other public agencies responsible for approval, funding or auditing the project, during normal business hours upon reasonable notice. Nothing herein shall convert such records into public records and they will be available only to the City or to public agencies involved with approval, funding or audit functions. Such records shall be maintained by the Contractor for three (3) years following completion of the work under this Agreement.
24. DESIGN CHANGES OR REVISIONS
No design changes or revisions will be required and no payment therefor will be made except pursuant to the provisions of this Agreement. No extra compensation shall be paid the Contractor for revisions required by reason of omissions or errors by the Contractor in the preparation of the original document, plans, working drawings, or specifications. Changes to the scope of this Agreement shall be negotiated prior to commencement of extra work.
25. OWNERSHIP OF WORK
All finished or unfinished documents, studies, reports, computer files and materials prepared by Contractor and subcontractors under this Agreement shall be considered the property of the City and will be turned over to the City upon demand, but in any event, upon completion of the Project.
The Contractor shall be allowed to retain copies of documents for his permanent records, if desired.
26. INTEGRATION; AMENDMENTS
This Agreement sets forth the entire understanding of the parties with respect to the subject matter herein. There are no other agreements, expressed or implied, oral or written, except as set forth herein. This Agreement may be amended upon written mutual consent of both parties hereto.
Amendment requiring changes in compensation shall be subject to the City's change order procedures.
27. ADDITIONAL SERVICES OUTSIDE SCOPE
Only after written authorization from the City, additional services that Contractor could provide, or cause to be provided, include the following:
Agreement: Administration of LEAP Forward Program
Version 2025.2 14
A. Additional work related to the Project but not included in the Scope of Work.
B. Additional work caused by changes unrelated to the Scope of Work described herein.
Contractor will be compensated for Contractor time and direct personnel expenses as approved by the City.
28. CHANGES
The City may, from time to time, request changes in the Scope of Services of the Contract to be performed hereunder. Such changes, including any increase or decrease in the amount of the Contractor's compensation, which are mutually agreed upon by and between the City and the Contractor shall be incorporated to this Contract.
29. NON-DISCLOSURE
The designs, plans, reports, investigations, materials and documents prepared or acquired by the Contractor pursuant to this Agreement (including any duplicate copies kept by the Contractor) shall not be shown to any other public or private person or entity, except as authorized by the City.
The Contractor shall not disclose to any other public or private person or entity any information regarding the activities of the City except as authorized by the City.
30. JOB SITE SAFETY
The general or prime Contractor who is responsible for means, methods and procedures of the project shall be responsible for job site safety.
The prime contractor and all subcontractors of all tiers shall:
A. Be responsible for the safety of their respective employees as required by law.
B. Come under the jurisdiction and supervision of the general or prime contractor’s job site safety program.
C. Exercise reasonable care to avoid risk of injury to others as required by the professional standard of care.
31. BUSINESS LICENSE
The Contractor, including all subcontractors, shall obtain a business license for work within the City of La Mesa pursuant to La Mesa Municipal Code Sections 6.08.010 through 6.08.240.
No payments shall be made to any Contractor until such business license has been obtained, and all fees paid therefor, by the Contractor and all subcontractors. Business license applications and information may be obtained from the Finance Department, City Hall, 8130 Allison Avenue, La Mesa, CA 91942-5502, (619) 667-1118 or online at cityoflamesa.us/buslic.
Agreement: Administration of LEAP Forward Program
Version 2025.2 15
32. PREVAILING WAGES FOR PUBLIC WORKS PROJECTS
IF APPLICABLE
A. No professional Contractor or subcontractor subject to the requirements of State of California’s prevailing wages may be awarded a contract, or contracted with, for a public works project (submitted on or after April 1, 2015) unless registered with the Department of Industrial Relations pursuant to Labor Code section 1725.5 [with limited exceptions from this requirement for bid purposes only under Labor Code section 1771.1(a)].
B. This Project is subject to compliance monitoring and enforcement by the Department of Industrial Relations.
33. CONFLICT BETWEEN AGREEMENT AND OTHER DOCUMENTS
In the event of a conflict between this Agreement and any documents incorporated by reference in this Agreement, the terms and conditions of this Agreement shall supersede those contained in any such document incorporated by reference.
34. OTHER PUBLIC AGENCIES
If this Agreement is based on a competitive solicitation, other public agencies may piggyback on this Agreement in order to enter into contracts with the Contractor for any and all services specified within.
(CONTINUE ON NEXT PAGE)
Agreement: Administration of LEAP Forward Program
Version 2025.2 16
35. SIGNATURES
IN WITNESS WHEREOF, City and Contractor have executed the Agreement.
San Diego East County Economic Development Council
By: _________________________________ Date: _____________ Matt Sanford, President and CEO
CITY OF LA MESA,
A Municipal Corporation
By: _________________________________ Date: _____________ Dr. Mark Arapostathis, Mayor
By: _________________________________ Date: _____________ Greg Humora, City Manager
APPROVED AS TO FORM
By: _________________________________
CITY ATTORNEY
Attachment: Exhibit A – Proposal and Scope of Work
LEAP FORWARD
S M A L L B U S I N E S S B O O S T
P R O J E C T D E S C R I P T I O N
The La Mesa Entrepreneurship Accelerator Program (LEAP) is a business support initiative designed to strengthen and expand existing businesses within the City of La Mesa through targeted technical assistance, individualized advising, and strategic business development support. The program will provide participating businesses with customized resources tailored to their unique operational needs, helping them improve long-term sustainability, competitiveness, and growth potential. Upon completion of the program, businesses will be better positioned to secure financial resources and growth capital, including revolving loan funds, SBA financing, and traditional lending opportunities.
The East County Economic Development Council (ECEDC) will serve as the program’s case manager, working directly with participating businesses to ensure they remain actively engaged throughout the program and receive the support necessary to achieve successful outcomes. This hands-on approach will encourage program completion, strengthen business readiness, and improve long-term economic impact.
Through LEAP Forward, ECEDC will also serve as an economic development partner for the City of La Mesa by providing ongoing support, guidance, and access to business resources that foster local business growth, attract new investment, support job creation, and strengthen the city’s overall economic vitality.
C O S T
$ 4 5 , 0 0 0
P R O G R A M O P E R A T I O N A N D D E L I V E R Y - $ 4 5 , 0 0 0 2 L E A P C O H O R T S - 1 0 B U S I N E S S E S T R A I N E D P E R C O H O R T ( 2 0 T O T A L )
C A S E M A N A G E M E N T & I N D I V I D U A L I Z E D B U S I N E S S
A D V I S I N G
S B D C T R A I N I N G C L A S S E S & C U R R I C U L U M D E L I V E R Y
M A R K E T I N G & P A R T I C I P A N T R E C R U I T M E N T
A P P L I C A T I O N I N T A K E , S C R E E N I N G , A N D E V A L U A T I O N
O N G O I N G P E R F O R M A N C E T R A C K I N G & R E P O R T I N G Exhibit "A" - Proposal & Scope of Work
LEAP FORWARD
S M A L L B U S I N E S S B O O S T
P R O P O S E D C O U R S E S
Developing Financial Projections for Your Business Plan and As a Tool to Manage Your Business (Jeff Bernstein): Top 20 highly attended SBDC Workshop. This workshop provides step-by-step guidance to help business owners create accurate financial projections for their business plan, enabling better budgeting and informed decisionmaking to improve profitability.
How Successful Companies Use Social Media (Hayato Nakamura): Ranked #1 highly attended SBDC workshop. This workshop offers foundational principles, common pitfalls to avoid, and strategies employed by successful companies to enhance online presence and drive profitability.
Artificial Intelligence Course (Brian Westpoint): This interactive AI workshop is designed for small business owners, solopreneurs, and professionals looking to better understand how artificial intelligence can improve productivity and simplify day-to-day operations. Participants will spend the day building practical, intelligent systems that can automate repetitive tasks, streamline workflows, and create more time for strategy, leadership, and creativity. By the end of the workshop, attendees will leave with realworld tools and actionable knowledge they can immediately apply to their business or professional life.
B U S I N E S S T R A I N I N G P R O G R A M - E A C H
B U S I N E S S W I L L R E C E I V E
C A S E M A N A G E R
4 S B D C T R A I N I N G C L A S S E S
B U S I N E S S A D V I S O R A S S I G N E D
3 + H O U R S O F B U S I N E S S A D V I S I N G
A S S I S TA N C E W I T H B U S I N E S S P L A N
A S S I S TA N C E W I T H B U S I N E S S L I C E N S E S A N D P E R M I T S HR Basics for Your Business (Sara Nicholson): Whether you have employees or are considering hiring, your business must have a basic HR foundation. This conversation will help you understand the essential Federal, State, and local mandates for hiring & ongoing maintenance to help protect you and your business. .
LEAP FORWARD
S M A L L B U S I N E S S B O O S T
D E L I V E R A B L E S - W H A T T H E $ 4 5 , 0 0 0 P R O D U C E S
B U S I N E S S I M P A C T
2 L E A P C O H O R T S S U C C E S S F U L LY E X E C U T E D 2 0 L A M E S A B U S I N E S S E S T R A I N E D & C O U N S E L E D 5 0 J O B S S U P P O R T E D
P R O G R A M M A N A G E M E N T
S T R U C T U R E D A P P L I C A T I O N & C O H O R T S E L E C T I O N P R O C E S S C O M P R E H E N S I V E T R A I N I N G C U R R I C U L U M , I N C L U D I N G :
F I N A N C E , M A R K E T I N G , H R , & A I
A C C O U N T A B I L I T Y A N D G R O W T H
P E R F O R M A N C E T R A C K I N G , I N C L U D I N G :
J O B S , R E V E N U E G R O W T H & B U S I N E S S S U R V I V A B I L I T Y
E X P E C T E D O U T C O M E S
Support the growth and Long-Term sustainability of existing small businesses within the City of La Mesa.
Support local job retention and future job creation by helping businesses expand operations and increase competitiveness.
Increase business survivability and revenue growth among participating companies.
Encourage continued investment and economic activity within the City of La Mesa.
Strengthen the City of La Mesa’s overall economic vitality through small business support and entrepreneurship development.
S B D C I M P A C T
LEAP Forward will be delivered in partnership with the San Diego & Imperial Small Business Development Center (SBDC), part of California’s statewide SBDC network that assists more than 100,000 small businesses annually and generates over $2 billion in economic impact across California each year. Since 2023, the San Diego & Imperial SBDC has helped create more than $1.9 billion in regional economic impact, including 6,320 jobs created, 745 businesses opened, $711 million in sales and contracts generated, and over $1.2 billion in business funding secured.
By leveraging the proven expertise, technical assistance, and economic development track record of the SBDC network, LEAP Forward will help strengthen La Mesa’s small business ecosystem, support local job growth, and contribute to the city’s long-term economic vitality and resilience.
LEAP FORWARD
S M A L L B U S I N E S S B O O S T
P R O J E C T D E S C R I P T I O N
The La Mesa Entrepreneurship Accelerator Program (LEAP) is a business support initiative designed to strengthen and expand existing businesses within the City of La Mesa through targeted technical assistance, individualized advising, and strategic business development support. The program will provide participating businesses with customized resources tailored to their unique operational needs, helping them improve long-term sustainability, competitiveness, and growth potential. Upon completion of the program, businesses will be better positioned to secure financial resources and growth capital, including revolving loan funds, SBA financing, and traditional lending opportunities.
The East County Economic Development Council (ECEDC) will serve as the program’s case manager, working directly with participating businesses to ensure they remain actively engaged throughout the program and receive the support necessary to achieve successful outcomes. This hands-on approach will encourage program completion, strengthen business readiness, and improve long-term economic impact.
Through LEAP Forward, ECEDC will also serve as an economic development partner for the City of La Mesa by providing ongoing support, guidance, and access to business resources that foster local business growth, attract new investment, support job creation, and strengthen the city’s overall economic vitality.
C O S T
$ 4 5 , 0 0 0
P R O G R A M O P E R A T I O N A N D D E L I V E R Y - $ 4 5 , 0 0 0 2 L E A P C O H O R T S - 1 0 B U S I N E S S E S T R A I N E D P E R C O H O R T ( 2 0 T O T A L )
C A S E M A N A G E M E N T & I N D I V I D U A L I Z E D B U S I N E S S
A D V I S I N G
S B D C T R A I N I N G C L A S S E S & C U R R I C U L U M D E L I V E R Y
M A R K E T I N G & P A R T I C I P A N T R E C R U I T M E N T
A P P L I C A T I O N I N T A K E , S C R E E N I N G , A N D E V A L U A T I O N
O N G O I N G P E R F O R M A N C E T R A C K I N G & R E P O R T I N G Exhibit "A" - Proposal & Scope of Work
LEAP FORWARD
S M A L L B U S I N E S S B O O S T
P R O P O S E D C O U R S E S
Developing Financial Projections for Your Business Plan and As a Tool to Manage Your Business (Jeff Bernstein): Top 20 highly attended SBDC Workshop. This workshop provides step-by-step guidance to help business owners create accurate financial projections for their business plan, enabling better budgeting and informed decisionmaking to improve profitability.
How Successful Companies Use Social Media (Hayato Nakamura): Ranked #1 highly attended SBDC workshop. This workshop offers foundational principles, common pitfalls to avoid, and strategies employed by successful companies to enhance online presence and drive profitability.
Artificial Intelligence Course (Brian Westpoint): This interactive AI workshop is designed for small business owners, solopreneurs, and professionals looking to better understand how artificial intelligence can improve productivity and simplify day-to-day operations. Participants will spend the day building practical, intelligent systems that can automate repetitive tasks, streamline workflows, and create more time for strategy, leadership, and creativity. By the end of the workshop, attendees will leave with realworld tools and actionable knowledge they can immediately apply to their business or professional life.
B U S I N E S S T R A I N I N G P R O G R A M - E A C H
B U S I N E S S W I L L R E C E I V E
C A S E M A N A G E R
4 S B D C T R A I N I N G C L A S S E S
B U S I N E S S A D V I S O R A S S I G N E D
3 + H O U R S O F B U S I N E S S A D V I S I N G
A S S I S TA N C E W I T H B U S I N E S S P L A N
A S S I S TA N C E W I T H B U S I N E S S L I C E N S E S A N D P E R M I T S HR Basics for Your Business (Sara Nicholson): Whether you have employees or are considering hiring, your business must have a basic HR foundation. This conversation will help you understand the essential Federal, State, and local mandates for hiring & ongoing maintenance to help protect you and your business. .
LEAP FORWARD
S M A L L B U S I N E S S B O O S T
D E L I V E R A B L E S - W H A T T H E $ 4 5 , 0 0 0 P R O D U C E S
B U S I N E S S I M P A C T
2 L E A P C O H O R T S S U C C E S S F U L LY E X E C U T E D 2 0 L A M E S A B U S I N E S S E S T R A I N E D & C O U N S E L E D 5 0 J O B S S U P P O R T E D
P R O G R A M M A N A G E M E N T
S T R U C T U R E D A P P L I C A T I O N & C O H O R T S E L E C T I O N P R O C E S S C O M P R E H E N S I V E T R A I N I N G C U R R I C U L U M , I N C L U D I N G :
F I N A N C E , M A R K E T I N G , H R , & A I
A C C O U N T A B I L I T Y A N D G R O W T H
P E R F O R M A N C E T R A C K I N G , I N C L U D I N G :
J O B S , R E V E N U E G R O W T H & B U S I N E S S S U R V I V A B I L I T Y
E X P E C T E D O U T C O M E S
Support the growth and Long-Term sustainability of existing small businesses within the City of La Mesa.
Support local job retention and future job creation by helping businesses expand operations and increase competitiveness.
Increase business survivability and revenue growth among participating companies.
Encourage continued investment and economic activity within the City of La Mesa.
Strengthen the City of La Mesa’s overall economic vitality through small business support and entrepreneurship development.
S B D C I M P A C T
LEAP Forward will be delivered in partnership with the San Diego & Imperial Small Business Development Center (SBDC), part of California’s statewide SBDC network that assists more than 100,000 small businesses annually and generates over $2 billion in economic impact across California each year. Since 2023, the San Diego & Imperial SBDC has helped create more than $1.9 billion in regional economic impact, including 6,320 jobs created, 745 businesses opened, $711 million in sales and contracts generated, and over $1.2 billion in business funding secured.
By leveraging the proven expertise, technical assistance, and economic development track record of the SBDC network, LEAP Forward will help strengthen La Mesa’s small business ecosystem, support local job growth, and contribute to the city’s long-term economic vitality and resilience.