Agenda packet — Lakewood City Council, December 12, 2023 (part 1 of 2)

AGENDA

REGULAR CITY COUNCIL MEETING

COUNCIL CHAMBERS
5000 CLARK AVENUE

LAKEWOOD, CALIFORNIA
December 12, 2023
RECEPTION: “Lakewood Celebrates . . .” 6:00 p.m.

CALL TO ORDER 7:30 p.m.

INVOCATION: Reverend Tamara John, Christ Presbyterian Church Lakewood PLEDGE OF ALLEGIANCE: Cub Scout Pack 208
ROLL CALL: Mayor Ariel Pe
Vice Mayor Todd Rogers
Council Member Cassandra Chase
Council Member Steve Croft
Council Member Jeff Wood
ANNOUNCEMENTS AND PRESENTATIONS:

ROUTINE ITEMS:

All items listed within this section of the agenda are considered to be routine and will be enacted by one motion without separate discussion. Any Member of Council may request an item be removed for individual discussion or further explanation. All items removed shall be considered immediately following action on the remaining items.

RI-1 MEETING MINUTES - Staff recommends City Council approve Minutes of the Meetings held November 14, and November 28, 2023
RI-2 PERSONNEL TRANSACTIONS - Staff recommends City Council approve report of personnel transactions.

RI-3 REGISTERS OF DEMANDS - Staff recommends City Council approve registers of demands.

RI-4 CITY COUNCIL COMMITTEES’ ACTIVITIES - Staff recommends City Council receive and file the report.

RI-5 MONTHLY REPORT OF INVESTMENT TRANSACTIONS - NOVEMBER 2023 - Staff recommends City Council receive and file the report.

RI-6 APPROVAL OF PROFESSIONAL SERVICES AGREEMENT WITH THE GATEWAY CITIES

COUNCIL OF GOVERNMENTS FOR IMPLEMENTATION OF THE GATEWAY CITIES LOCAL SOLUTIONS FUND - Staff recommends the City Council approve a professional services agreement with Gateway Cities Council of Governments for the implementation of the Gateway Cities Local Solutions Fund to continue the LCA 4 Homeless Services Liaison program, and authorize the City Manager to sign the agreement in a form approved by the City Attorney.

RI-7 APPROVAL OF CONSULTING SERVICES AUTHORIZATION – ARDURRA GROUP – WEINGART SR. CENTER IMPROVEMENTS - Staff recommends the City Council authorize work for the Weingart Sr. Center improvements per the Ardurra proposal dated November 28, 2023, in an amount not-to-exceed $47,905, and authorize the Mayor to sign the proposal.

In compliance with the Americans with Disabilities Act, if you are a qualified individual with a disability and need an accommodation to participate in the City Council meeting, please contact the City Clerk’s Office, 5050 Clark Avenue, Lakewood, CA, at 562/866-9771, ext. 2200; or at [email protected] at least 48 hours in advance to ensure that reasonable arrangements can be made to provide accessibility to the meeting.

Agenda items are on file in the Office of the City Clerk, 5050 Clark Avenue, Lakewood, and are available for public review during regular business hours. Any supplemental material distributed after the posting of the agenda will be made available for public inspection during normal business hours in the City Clerk’s Office. For your convenience, the agenda and the supporting documents are available in an alternate format by request and are also posted on the City’s website at www.lakewoodcity.org City Council Agenda
December 12, 2023

Page 2 ends

ROUTINE ITEMS: - Continued
RI-8 APPROVAL OF LEASE AGREEMENT BETWEEN THE CITY OF LAKEWOOD AND BIG BEN ENGINEERING - Staff recommends the City Council authorize the execution of the Lease Agreement between the City of Lakewood and Big Ben Engineering for the use of the property located at 20525-20529 Pioneer Boulevard for the purpose of staging for a water main replacement project.

RI-9 APPROVAL OF AFTER STUDY AND DESIGN ENGINEERING SERVICES FOR UNCONTROLLED MARKED CROSSWALKS - Staff recommends the City Council appropriate $100,000 in the project account 10109908-58800-60062 from the General Fund, for the after study and design engineering services related to the uncontrolled marked crosswalks; authorize Willdan Engineering’s services to conduct the after study and develop the technical memorandum of the uncontrolled marked crosswalks pilot locations, under their existing Agreement for Engineering Services, in an amount of $21,241 and authorize the Mayor to sign the proposal; and authorize Willdan Engineering’s design engineer services for the additional 23 uncontrolled marked crosswalks, under their existing Agreement for Engineering Services, in an amount of $134,000 and authorize the Mayor to sign the proposal
REPORTS:

3.1 REVIEW OF ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR) FOR YEAR ENDED JUNE 30, 2023, AND PRESENTATION OF GOVERNMENT FINANCE OFFICERS ASSOCIATION (GFOA) AWARD - Staff recommends City Council receive and file the ACFR for year ended June 30, 2023, and accept the GFOA Certificate of Achievement for Excellence in Financial Reporting award for fiscal year ending June 30, 2022.

3.2 APPROVAL OF EXPENSE REIMBURSEMENT AGREEMENT WITH CENTRAL BASIN MUNICIPAL WATER DISTRICT FOR WATER EFFICIENCY PROJECT - Staff recommends the City Council approve and authorize the mayor to sign the Expense Reimbursement Agreement with Central Basin Municipal Water District for an amount up to $110,000 to complete water efficiency projects at San Martin, Boyar and Del Valle parks.

3.3 EXTENSION OF AGREEMENT BETWEEN THE CITY OF LAKEWOOD AND CARE SOLACE, INC. - Staff recommends the City Council approve the five-month contract extension with Care Solace, Inc. and appropriate $28,125 of American Rescue Plan Act funds.

AGENDA

LAKEWOOD SUCCESSOR AGENCY

1. APPROVAL OF RECOGNIZED OBLIGATION PAYMENT SCHEDULE (ROPS) FOR JULY 1, 2024 THROUGH JUNE 30, 2025 – ROPS 24-25 AND ADMINISTRATIVE BUDGET FY 2024-25 – Staff recommends City Council approve the Recognized Obligation Payment Schedule for July 1, 2024 Through June 30, 2025 – ROPS 24-25 and the Administrative Budget for FY 2024-25.

ORAL COMMUNICATIONS:

ADJOURNMENT

RI-1
Routine Item 1 – City Council Minutes
will be available prior to the meeting.

COUNCIL AGENDA
December 12, 2023
TO: The Honorable Mayor and City Council
SUBJECT: Report of Personnel Transactions
Effective
Name Title Schedule Date

1. FULL-TIME EMPLOYEES
A. Appointments
None
B. Changes
None
C. Separations
None

PART-TIME EMPLOYEES
A. Appointments
Gabriel Argott Maintenance Services Aide IV B 11/13/2023 David Carver Maintenance Services Aide IV B 11/13/2023
B. Changes
Geoffrey Barker Maintenance Services Aide III
Maintenance Services Aide IV
B to
B 10/29/2023
C. Separations
Alyssa Anna Community Services Leader III B 11/08/2023
Stephen Echavarria Maintenance Services Aide III B 10/28/2023 Jonathan Siordia Paratransit Communications Operator B 11/08/2023 Jose Vega Community Services Leader II B 11/15/2023
Thaddeus McCormack
City Manager
RI-2

CITY OF LAKEWOOD
FUND SUMMARY 11/09/2023
In accordance with section 2521 of the Lakewood Municipal Code, presented herewith is a summary of obligations to be paid by the City of Lakewood. Each of the following demands has been audited by the Director of Finance and Administrative Services and approved by the City Manager. 1010 GENERAL FUND

AMERICAN RESCUE PLAN

CDBG CURRENT YEAR

COMMUNITY FACILITY

RETIREE BENEFITS

LAKEWOOD EQUESTRIAN CENTER

MISC-SPECIAL REVENUE FUND

LA CNTY MEASURER

LA CNTY MEASURE W
PROPOSITION "C*

GRAPHICS AND COPY CENTER

CENTRAL STORES

FLEET MAINTENANCE

WATER UTILITY FUND

LOCAL REHAB LOAN

TRUST DEPOSIT
452,539.67
310.00
17,055.38
23,898.32
7,450.00
14,218.08
10,111.64
3,328.50
44,833.12
2,198.19
394.81
5,069.38
26,711.69
876,608.30
238.00
3,568.98
1025
1030
1050
1070
1090
1500
1621
1623
3070
5010
5020
5030
7500
8020
8030
1,488,534.06
Council Approval
Date City Manager
Attest
City Clerk Director of Finance and Administrative Services RI-3

CITY OF LAKEWOOD

SUMMARY CHECK REGISTER
CHECK
DATE
CHECK

VENDOR NAME AMOUNT
11/09/2023
11/09/2023
11/09/2023
11/09/2023
11/09/2023
11/09/2023
11/09/2023
11/09/2023
11/09/2023
11/09/2023
11/09/2023
11/09/2023
11/09/2023
11/09/2023
11/09/2023
11/09/2023
11/09/2023
11/09/2023
11/09/2023
11/09/2023
11/09/2023
11/09/2023
11/09/2023
11/09/2023
11/09/2023
11/09/2023
11/09/2023
11/09/2023
11/09/2023
11/09/2023
11/09/2023
11/09/2023
11/09/2023
11/09/2023
11/09/2023
11/09/2023
11/09/2023
11/09/2023
11/09/2023
11/09/2023
11/09/2023
11/09/2023
11/09/2023
11/09/2023

A T & T CORP

ACTUARIAL RETIREMENT CONSULTING LLC

ADAMS-HILLERY SHARRON

AEF SYSTEMS CONSULTING INC

AIRE RITE A/C & REFRIGERATION INC

ALESHIRE & WYNDER LLP

ALL CITIES ENGINEERING INC

ALLIANT INSURANCE SERVICES

ALS GROUP USA CORP

AMAZON CAPITAL SERVICES INC

ARC DOCUMENT SOLUTIONS LLC
ATALLA. IBRAHIM
N. HARRIS COMPUTER CORPORATION

BAYAREA DRIVING SCHOOL INC
BIOMETRICS4ALL INC
BREA. CITY OF
BROEKER. CANDACE
LEE. YOUNG

C S M F O

CAL STATE AUTO PARTS INC

CHICAGO TITLE CO

CINTAS CORPORATION

CINTAS CORPORATION
COUCH. RON JR

CPS HR CONSULTING

CSI ELECTRICAL CONTRACTORS INC

DAHLIN GROUP INC

DE LAGE LANDEN FINANCIAL SERVICES
DELAROSA. LORRAINE

DIRECTV INC

DUNRITE PEST CONTROL INC

EMPLOYMENT DEVELOPMENT DEPT

FEDERAL EXPRESS CORP

FOGGIA INC
FONTELA. THAO

FRONTIER CALIFORNIA INC

GEORGE T HALL CO INC

HARA M LAWNMOWER CENTER

HOME DEPOT

HORIZON MECHANICAL CONTRACTORS

JHM SUPPLY INC

KDC INC

KICK IT UP KIDZ LLC

NORTH AMERICAN YOUTH ACTIVITIES LLC
368.63
4,350.00
6,450.00
310.00
29,808.69
156.00
806,181.40
1,426.00
1,784.13
1,269.45
17,621.84
117.00
33,361.60

32.50 14.25
35,382.00

16.25 274.52
405.00
641.65
238.00
251.25
343.84
240.00
976.50
10,120.00
78,814.87
394.81
162.44

46.25 635.00
6,282.00

15.30 363.83
100.00
2,336.73
18,374.13
891.87
1,097.05
1,002.40
672.40
2,160.00
672.75
2,167.75

Page 1 of 3 ends

CITY OF LAKEWOOD

SUMMARY CHECK REGISTER
CHECK
DATE
CHECK

3.858.76
270.00
119.72
20,395.44
3,368.98
6,148.23
7,892.50
308.26
810.00
830.69
686.66
115.76
11,440.00
1,415.63
139,307.29
240.00
1,390.10
518.17
330.03
700.00

55.93 1.638.76
KIM. YVONNE

LAKEWOOD ROTARY CLUB
LAKEWOOD. CITY OF

LONG BEACH CITY GAS & WATER DEPT
LOPEZ.ADRIANA

GREATER LOS ANGELES ZOO ASSOCIATION

M&M DISPLAY INC

MACRO AUTOMATICS

MALLORY SAFETY AND SUPPLY LLC
MERR1MAC PETROLEUM INC
MIEIR-KING.RICHARD

MUSCO CORPORATION

NADA BUS INC

O'REILLY AUTOMOTIVE STORES INC

ODP BUSINESS SOLUTIONS LLC

ONWARD ENGINEERING

PHASE II SYSTEMS INC

ROMBERG MILLING INC

S & J SUPPLY CO
SANCHEZ. EUGENE

BARRY SANDLER ENTERPRISES

SOUTHERN COUNTIES OIL CO

SEE'S CANDIES INC
SHELLITO. MICHAEL

SIERRA INSTALLATIONS INC

SIGNAL HILL AUTO ENTERPRISES INC
SIMPSON & SIMPSON CPAs

SITEONE LANDSCAPE SUPPLY LLC

SMART & FINAL INC

MWB COPY PRODUCTS INC

SOMERS ENTERPRISES INC

COMPUTER & PERIPHERALS GROUP

SOUTHERN CALIFORNIA EDISON CO

SPASEFF TED C
STEIN. ANDREW T

SULLY MILLER

TNEMEC COMPANY INC

BANDURRAGA ROBERT

UNITED WATERWORKS INC

CELLCO PARTNERSHIP
VOORHEES. RONDA

WATERLINE TECHNOLOGIES INC

WAXIE ENTERPRISES INC

WEST COAST ARBORISTS INC

32.50 4,440.87
1,888.42
71,490.30

Page 2 of 3 ends

CITY OF LAKEWOOD

SUMMARY CHECK REGISTER
CHECK
DATE
CHECK

VENDOR NAME AMOUNT
11/09/2023
11/09/2023
11/09/2023
11/09/2023
11/09/2023
11/09/2023
11/09/2023
11/09/2023
11/09/2023

WHITE HOUSE FLORIST INC
WILBER. BILL

WILLDAN ASSOCIATES
WYNN.LAKYN
ATANACIO.STEPHANIE

FRIENDS OF THE LAKEWOOD LIBARIES
HEATH. CATHY

MACERICH LAKEWOOD LLC
WESTBROOK. SHANNON

99.23 42.00

18.976.50

81.25 250.00
250.00
1,380.00
2,136.14
250.00
Total: 1,488,534.06

Page 3 of 3 ends

CITY OF LAKEWOOD
FUND SUMMARY 11/16/2023
In accordance with section 2521 of the Lakewood Municipal Code, presented herewith is a summary of obligations to be paid by the City of Lakewood. Each of the following demands has been audited by the Director of Finance and Administrative Services and approved by the City Manager. 1010 GENERAL FUND

CABLE TV

AMERICAN RESCUE PLAN

CDBG CURRENTYEAR

COMMUNITY FACILITY

RETIREE BENEFITS

STATE COPS GRANT

LA CNTY MEASURER
PROPOSITION "A"
PROPOSITION "C
!l

GRAPHICS AND COPY CENTER

CENTRAL STORES

FLEET MAINTENANCE

WATER UTILITY FUND

LOCAL REHAB LOAN

TRUST DEPOSIT
1,988,431.98
207.08
7,068.00
813.33
1,909.54
2,958.05
16,666.66
38,678.25
227,980.00

16.99 1020
1025
1030
1050
1070
1336
1621
3060
3070
5010 1.72
5020 2,040.25
3,130.63
32,336.99
4,219.00
37,390.23
5030
7500
8020
8030
2,363,848.70
Council Approval
Date City Manager
Attest
City Clerk Director of Finance and Administrative Services

CITY OF LAKEWOOD

SUMMARY CHECK REGISTER
CHECK
DATE
CHECK

VENDOR NAME AMOUNT
11/16/2023
11/16/2023
11/16/2023
11/16/2023
11/16/2023
11/16/2023
11/16/2023
11/16/2023
11/16/2023
11/16/2023
11/16/2023
11/16/2023
11/16/2023
11/16/2023
11/16/2023
11/16/2023
11/16/2023
11/16/2023
11/16/2023
11/16/2023
11/16/2023
11/16/2023
11/16/2023
11/16/2023
11/16/2023
11/16/2023
11/16/2023
11/16/2023
11/16/2023
11/16/2023
11/16/2023
11/16/2023
11/16/2023
11/16/2023
11/16/2023
11/16/2023
11/16/2023
11/16/2023
11/16/2023
11/16/2023
11/16/2023
11/16/2023
11/16/2023
11/16/2023

HEALTH AND HUMAN RESOURCES CENTER INC

ALEX MACIAS DOG TRAINING LLC

ALL STAR GLASS

AMAZON CAPITAL SERVICES INC

AOUATIC DESIGN GROUP

ARC DOCUMENT SOLUTIONS LLC

ARDURRA GROUP INC

ROSS AVIATION INVESTMENT LLC

AUTOLIFT SERVICES INC

B & H FOTO & ELECTRONICS CORP

BANNER BANK

BEAR COMMUNICATIONS INC

BEGINNERS EDGE SPORTS TRAINING LLC

TWO SHELLS ENTERPRISES INC
BROWN. BONNIE

BUCKNAM PETER JOSEPH

C S M F O

CALIFORNIA STATE DEPT OF JUSTICE

CANYON SPRINGS ENTERPRISES
COCHRAN. JACQUELINE

COLOMRICAN INC

DICKSON R F CO INC

EDCO WASTE SERVICES LLC

FEDERAL EXPRESS CORP

FLEMING ENVIRONMENTAL INC
GLAVINICH. JESSICA

GONSALVES JOE A & SON
HASS. BARBARA

HOME DEPOT

JHM SUPPLY INC
JONES RICHARD D. A PROF LAW CORP

KICK IT UP KIDZ LLC

KILEY GREGORYTHOMAS

KONO GINGER ANNA CHAN

LAKEWOOD CHAMBER OF COMMERCE
LAKEWOOD. CITY OF
LAKEWOOD. CITY WATER DEPT

LAWRENCE W ROSINE CO

LONG BEACH PUBLIC TRANSPORTATION CO

LOS ANGELES CO SHERIFFS DEPT

LA COUNTY DEPT OF PUBLIC WORKS
280.26
682.50
578.37

1.392.97
650.00
5,200.00
765.29
630,99
29,955.48

6.595.32
800.00
847.78
752.83

1.881.97
4,361.50
120.00
245.05
38,678.25
135.00
256.00
14,303.84
475.62
226.11
48,931,76
525,672.29
910.68
105.92
49,964.00
484.00
4,526.00
780.00
703.44
299.26
17,252.50
672.75
3,750.00
300.00

1.833.33
200.00
1,000.13
32,700.00
227,980.00
1,188,162.84
6,906.92

Page 1 of 3 ends

CITY OF LAKEWOOD

SUMMARY CHECK REGISTER
CHECK
DATE
CHECK

MALLORY SAFETYAND SUPPLY LLC
MARTUCCI. CHUCK
MC ENROE. BARBARA
MOTA. DANIEL

NIMCO INC
NOVAK. NORA

OCAJ INC

ODP BUSINESS SOLUTIONS LLC

DY-JO CORPORATION

PHASE II SYSTEMS INC

PATHWAYS VOLUNTEER HOSPICE
PULLMAN. GARY
PUN GROUP. THE LLP

REPTACULAR ANIMALS CORPORATION
S.T.E.A.M.

SCMAF OFFICE

SERVICEWEAR APPAREL INC

SHARP ELECTRONICS CORPORATION

SITEONE LANDSCAPE SUPPLY LLC

SMART & FINAL INC

SOUTHERN CALIFORNIA EDISON CO

SOUTHERN CALIFORNIA GAS CO

SOUTHWEST PATROL INC

SPECIALTY TIRES LLC

SU CASA ENDING DOMESTIC VIOLENCE

SUPERIOR COURT OF CALIFORNIA

SUPERIOR COURT OF CALIFORNIA
T2 SYSTEMS INC

TGIS CATERING SVCS INC

THE SALVATION ARMY

THE TECHNOLOGY DEPOT

TRAFFIC MANAGEMENT INC

FUSION METALWORKS INC

VITAL RECORDS HOLDING LLC

WAXIE ENTERPRISES INC

WESTERN WATER WORKS SUPPLY CO
WILBER. BILL
AVILA. BLANCA
FLORES.ADRIANNA
HEDBERG.WH
KELLY. JORDAN
MORALES. GILBERTO

NEW LIGHT ELECTRIC
SPINKS. TERRILL
605,08
125.53
187.20
250.00
1,819.14
178.70
19,00
737.71
790,00
2,958,05
548.33
725.00
15,000,00
1,010.00
15,499,24
330.49
693,58
2,057.79
3,963,25
151.98
14,452.51
2,935.48
23,165.00
1,085.38
265.00

6.894.50

9.997.50

95.00 780.00
7,068.00
7,659.23
2,766.60
5,790.44
73,78
383.69
3,537.03

28.00 250,00
250.00
189.34
250.00
881.20
4,200.00
250.00

Page 2 of 3 ends

CITY OF LAKEWOOD

SUMMARY CHECK REGISTER
CHECK
AMOUNT
CHECK

DATE VENDOR NAME
Total: 2
*
363,848.70

Page 3 of 3 ends

CITY OF LAKEWOOD
FUND SUMMARY 11/22/2023
In accordance with section 2521 of the Lakewood Municipal Code, presented herewith is a summary of obligations to be paid by the City of Lakewood, Each of the following demands has been audited by the Director of Finance andAdministrative Services and approved by the City Manager, 1010 GENERAL FUND
1015 SPECIAL OLYMPICS
1020 CABLE TV
1030 CDBG CURRENT YEAR
1035 CASP CERTIFICATION & TRNG FUND
1050 COMMUNITY FACILITY
1090 LAKEWOOD EQUESTRIAN CENTER
1623 LA CNTY MEASURE W
3070 PROPOSITION "C"
5020 CENTRAL STORES

FLEET MAINTENANCE
7500 WATER UTILITY FUND
8030 TRUST DEPOSIT
347,398,66

10.49 7,039.59
1,168,66

4.00 7.751.48
2,429.94
13,478.00
307.24

3.905.48
9,076.75
178,643.17
278.01
5030
571,491.47
Council Approval
Date City Manager
Attest
City Clerk Director of Finance and Administrative Services

CITY OF LAKEWOOD

SUMMARY CHECK REGISTER
CHECK
DATE
CHECK

VENDOR NAME AMOUNT
15,815.00
441.03
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023

ADVANCED INDUSTRIAL SERVICES INC

AGRI-TURF DISTRIBUTING

ALAN'S LAWN AND GARDEN CENTER INC
ALBANO'S PLUMBING INC .

ALLIED REFRIGERATION INC

AMAZON CAPITAL SERVICES INC

AMERICAN TRUCK & TOOL RENTAL INC

BACKSTREET SURVEILLANCE INC
BERG. APRIL

BIG STUDIO INC

TWO SHELLS ENTERPRISES INC
BREA.CITY OF

BRIZUELA XOCHITL

CAL BLEND SOILS INC

CALIF, STATE DISBURSEMENT UNIT

CALIF STATE FRANCHISE TAX BOARD

CAMERON WELDING SUPPLY
CERRITOS.CITY OF

CINTAS CORPORATION

CAMERON WELDING SUPPLY

COMMUNITY FAMILY GUIDANCE CTR

CORELOGIC INC

DANGELO COMPANY

DATA TICKET INC

ZW USA INC

EAST LONG BEACH POOL SUPPLY

EEC ACQUISITION LLC

C AND C ORGANIX ENTERPRISES LLC

FLUE STEAM INC

GANAHL LUMBER COMPANY

GOLDEN METERS SERVICES

GOLDEN STATE WATER COMPANY

GRAINGER W W INC

H & H NURSERY

HARA M LAWNMOWER CENTER
HAWK.TRUDY IFAHTIEM1
HEATON. KATHRYN

HOME DEPOT

HUMAN SERVICES ASSOCIATION

INTERNATIONAL ELECTRONIC ENTERPRISES INC

JHM SUPPLY INC
KARTER.JANET

KICK IT UP KIDZ LLC

87.98 395.00

43.88 2,616.74
930.72
10,616.00
591.50
192,94
120.00
41,632.50
257.40
1,323.00
849.68
104,02

26.55 33,973.70

4.55 355.48
185.64
548.33

66.00 931.99
207.60
457.43

94.86 5,460.16
66,237.50
241.00

69.53 575.00
11,557.27
267.77
137.81
870.98
159.25
195.00
5,454.93
598.33
5,859.79
1,399.30
873.60

29.25

Page 1 of 3 ends

CITY OF LAKEWOOD

SUMMARY CHECK REGISTER
CHECK
DATE
CHECK

VENDOR NAME AMOUNT
465,00
100.00
95,413.30
447.00
1,147.22
141.19
343.20
258.13
718.06
1,588.75
3,420.00
218.34
8,409.24
13,478.00
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023

LA OPINION LP
LAKEWOOD. CITY OF
LAKEWOOD.CITY WATER DEPT

LIFTECH ELEVATOR SERVICES INC
LONG BEACH.CITY OF

MALLORY SAFETY AND SUPPLY LLC
MC ENROE. BARBARA

MILLER DON & SONS

ODP BUSINESS SOLUTIONS LLC

BAR NONE GROUP INC

DY-JO CORPORATION

TAYLOR CORPORATION

PAYMENTUS CORPORATION

PUMPMAN LLC
MARTINEZ-RADZIUK. SONYA

RAYVERN LIGHTING SUPPLY CO INC

ROMBERG MILLING INC

S & J SUPPLY CO
SAN JUAN.CLYDE J
SCHRUBBE.JACOUELINE

STEARNS CONRAD & SCHMIDT CONSLT ENG

SERVICEWEAR APPAREL INC
SIEGEL.THEODORE

SITEONE LANDSCAPE SUPPLY LLC
SO CALIF SECURITY CENTERS rNC

SOUTHERN CALIFORNIA EDISON CO
STEPHENS.ERIC

SYN-TECH SYSTEMS INC
TENG. WHEA-FUN

TETRA TECH INC

THE RINKS-LAKEWOOD ICE

THURSTON ELEVATOR CONCEPTS INC

TUMBLE-N-KIDS INC

U S BANK NATIONALASSOCIATION

UNDERGROUND SERVICE ALERT

CELLCO PARTNERSHIP

VIDIFLO INC

WALTERS WHOLESALE ELECTRIC CO

WATER SYSTEM SERVICES LLC

WATERLINE TECHNOLOGIES INC

WAXIE ENTERPRISES INC

WECK ANALYTICAL ENVIRONMENTAL SERVICES F

WEST COAST ARBORISTS INC

WESTERN WATER WORKS SUPPLY CO

93.37 27.50
1,243.62
2,482.21
230.75
680.00
1,850.00
1,101.34
175.00
4,789.66
688.87
82,954.33

97.50 7/254.22
149.60
5,185.00
243.75
149.00
11,181.30
55,980.03
178.00
3,920.17
325.00

11.40 195.00
5,075.08
2,467.92
375.00
14,002.00
1,268.98

Page 2 of 3 ends

CITY OF LAKEWOOD

SUMMARY CHECK REGISTER
CHECK
AMOUNT
CHECK

DATE VENDOR NAME
16,565.00
7,664.10

WOOD RODGERS INC

WORLDWIDE RECOVERY SYSTEMS INC
WYNN. LAKYN
ALCALA. YESSENIA
ARCEO. MYA & GAIUS
DY. ALONNA

EAGLE SYSTEMS INTERNATIONAL INC
FERNANDEZ. CHARLENE CARPENTER

GUYOU CONSTRUCTION INC
HAWKINS. E'MIAH
JIMENEZ.JESSICA
JONES. KEANNA
MONROY. SARA
PEDRO. MIGUEL

SUNRUN INSTALLATION SERVICES

TRUE PWR CA LLC

VIZA ROOFING COMPANY INC
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023
11/22/2023

81.25 265.18

21.81 487.50

70.11 80.48
293.15
250,00
250.00
240.00
250.00
254.32
450.00
102.40
450.00
293.15

44.00 Total: 571,491.47

Page 3 of 3 ends

CITY OF LAKEWOOD
FUND SUMMARY 11/30/2023
In accordance with section 2521 of the Lakewood Municipal Code, presented herewith is a summary of obligations to be paid by the City of Lakewood. Each of the following demands has been audited by the Director of Finance and Administrative Services and approved by the City Manager. 1010 GENERAL FUND

CABLE TV

COMMUNITY FACILITY

LAKEWOOD EQUESTRIAN CENTER

AIR QUALITY IMPROVEMENT

GRAPHICS AND COPY CENTER

CENTRAL STORES

FLEET MAINTENANCE

WATER UTILITY FUND

LOCAL REHAB LOAN

TRUST DEPOSIT
242,762.82
1,768.44
86,575.50
18,813.71
61,718.52
480.19
3,554.51
2,957.11
401,279.20
7,081.23
500.00
1020
1050
1090
3000
5010
5020
5030
7500
8020
8030
827,491.23
Council Approval
Date City Manager
Attest
City Clerk Director of Finance and Administrative Services

CITY OF LAKEWOOD

SUMMARY CHECK REGISTER
CHECK
DATE
CHECK

VENDOR NAME AMOUNT
11/30/2023
11/30/2023
11/30/2023
11/30/2023
11/30/2023
11/30/2023
11/30/2023
11/30/2023
11/30/2023
11/30/2023
11/30/2023
11/30/2023
11/30/2023
11/30/2023
11/30/2023
11/30/2023
11/30/2023
11/30/2023
11/30/2023
11/30/2023
11/30/2023
11/30/2023
11/30/2023
11/30/2023

3.1/30/2023
11/30/2023
11/30/2023
11/30/2023
11/30/2023
11/30/2023
11/30/2023
11/30/2023
11/30/2023
11/30/2023
11/30/2023
11/30/2023
11/30/2023
11/30/2023
11/30/2023
11/30/2023
11/30/2023
11/30/2023
11/30/2023
11/30/2023
11/30/2023
11/30/2023
11/30/2023
305,00
1,499.40
11,238.89
1,389.87
1,821.44
1,652.11
8,580.00
1,614.59
1,481.76
390,154.69
5,671.81
266.81
724.05

19.50 499.38
849,68

25.00 45,950.00
225.00
480.19

COASTAL OCCUPATIONAL MEDICAL GROUP
ALAN’S LAWN AND GARDEN CENTER INC

ALLENSWORTH JASON

AMAZON CAPITAL SERVICES INC

AMERICAN TRUCK & TOOL RENTAL INC

AMERICAN SOCCER COMPANY INC

AOUATIC INFORMATICS INC

B & H FOTO & ELECTRONICS CORP
B.R, BREWER SIGN & GRAPHICS

BANC OF AMERICA PUBLIC CAPITAL CORP

BEAR COMMUNICATIONS INC

BIG STUDIO INC

BOBCAT OF CERRITOS
BROEKER. CANDACE
LEE. YOUNG

CALIF, STATE DISBURSEMENT UNIT

CALIF STATE FRANCHISE TAX BOARD

CALIFORNIA COMMERCIAL POOLS INC
CALIFORNIA. STATE OF

SEMA INC

CINTAS CORPORATION
DG INVESTMENT INTERMEDIATE HOLDINGS 2 INC

D&J INTERNATIONAL INC

DAHLIN GROUP INC

DELTA DENTAL INSURANCE COMPANY

DIRECTV INC

FARMERS & MERCHANTS BANK

GEORGE CHEVROLET

GIEMONT DEBORAH

HOME DEPOT

THE TUBBY CUBBY COMPANY

JHM SUPPLY INC

KICK IT UP KIDZ LLC

KLASSEN WOOD COMPANY

KOSMONT & ASSOCIATES INC
LAKEWOOD.CITY OF

LIEBERT CASSIDY WHITMORE

LA COUNTY DEPT OF PUBLIC WORKS

MC MASTER-CARR SUPPLY CO

MERRIMAC PETROLEUM INC

MITY-LITE

NATIONAL UNION FIRE INSURANCE CO

ODP BUSINESS SOLUTIONS LLC

CERRITOS FORD INC
SANCHEZ. EUGENE

SECTRAN SECURITY INC

4.55 2,505.00
796.56
21,120.00
912.39

46.25 5,933.00
30,551.85
158.52
2,202.96
695.62
283.12

19.50 7,469.65
1,856.40
500.00
624.50
262.86
17,391.36
543.34
2,957.11
86,575.50
444,55
1,727.48
47,730.39
630.00
211,11

Page 1 of 2 ends

CITY OF LAKEWOOD

SUMMARY CHECK REGISTER
CHECK
DATE
CHECK

VENDOR NAME AMOUNT
11/30/2023
11/30/2023
11/30/2023
11/30/2023
11/30/2023
11/30/2023
11/30/2023
11/30/2023
11/30/2023

3.1/30/2023
11/30/2023
11/30/2023
11/30/2023
11/30/2023
11/30/2023
11/30/2023
11/30/2023
11/30/2023
11/30/2023
11/30/2023
11/30/2023
11/30/2023
11/30/2023
11/30/2023
11/30/2023
11/30/2023
11/30/2023
11/30/2023
11/30/2023
11/30/2023
11/30/2023
11/30/2023
11/30/2023
11/30/2023
11/30/2023
31,166.67
140.35
2,387.07
484.25

97.69 SBLMAN CHEVROLET COMPANY

SERVICEWEAR APPAREL INC

SITEONE LANDSCAPE SUPPLY LLC

SKYHAWKS SPORTS ACADEMY LLC

SMART & FINAL INC

SO CALIF SECURITY CENTERS INC

SOUTHWEST PATROL INC
SPENCER. GORDON

TD SPORTS INC
STANDARD INSURANCE CO UNIT 22

STATE WATER RESOURCES CONTROL BOARD
STEPHENS. ERIC

TRAFFIC MANAGEMENT INC

TRANSAMERICA LIFE INSURANCE COMPANY

TUMBLE-N-KIDS INC

FUSION METALWORKS INC

WALTERS WHOLESALE ELECTRIC CO
WAMBA. DIANE B

WATERLINE TECHNOLOGIES INC
WAXiE ENTERPRISES INC

WESTERN EXTERMINATOR CO

COMPREHENSIVE PRINT GROUP LLC

WHITE HOUSE FLORIST INC

CALI EDGE BUILDERS

ENERGY SERVICE PARTNERS
GUEVARA. JULIETA
HERNDON. SAKILE
HU. ADAM
JOHNSON. BILLY
MEZA-YAW.MARIA

SMART WINDOW COMPANY

SUNRUN INSTALLATION SERVICES
THOMAS. JASMINE
WATER REPLENISHMENT DIST OF SOUTHERN CAL]
WILLIAMS. ALBERT

8.21 19,844.00
153.85
23,311.00
2,036.40

60.00 228.80
600.00
1,038.19
5,054.40
5,790.44
404.73
339.30
837,90
1,085.66
78,70
6,807.52
2,274.46
1,424.19
247.20
250.00
250.00

61.00 250.00

50.00 7,081.23
199.28
250.00
4,380.00
216.00
Total: 827,491.23

Page 2 of 2 ends

CITY OF LAKEWOOD
SUMMARY ACH/WIRE REGISTER NOVEMBER 2023
Period
Oct 15-28,2023
Oct 15-28, 2023
Oct 15-28, 2023
Oct 15-28, 2023
Oct 15-28, 2023
Oct 15-28, 2023
Oct 15-28, 2023
Oct 15-28, 2023
November 2023
November 2023
November 2023
Oct 29-Nov 11, 2023
Oct 29-Nov 11, 2023
Oct 29-Nov 11, 2023
Oct 29-Nov 11, 2023
Oct 29-Nov 11, 2023
Oct 29-Nov 11, 2023
Oct 29-Nov 11, 2023
November 2023
Recipient
Various
IRS via F&M
EDO
MidAmerica
VOYA
VOYA
PARS via U.S. Bank
PARS via U.S. Bank
The Technology Depot
Purpose
Employee Payroll
Payroll - Federal Taxes
Payroll - State Taxes
Retiree Medical Benefit
Payroll -Deferred Compensation
Payroll - Deferred Compensation
Payroll - Retirement Plan 1of 2
Payroll - Retirement Plan 2 of 2
Communications Services 1of 2
Reimbursement for Cash Collected
Invoice #525315 - Temp Power
Payroll - Federal Taxes
Employee Payroll
Payroll - State Taxes
Retiree Medical Benefit
Payroll -Deferred Compensation
Payroll - Retirement Plan 1of 1
Payroll - Deferred Compensation
Retiree Medical Benefit
Payroll - Retirement Plan
Employee Paid Dues
Communications Services 2 of 2
Payroll - Retirement Plan
Retirmnt-Unfunded Accrued Liab
Employee Payroll
Payroll - Federal Taxes
Payroll - State Taxes
Payroll -Deferred Compensation
Payroll -Deferred Compensation
Payroll - Deferred Compensation
Payroll - Retirement Plan 1of 1
Retiree Medical Benefit
ACH date
11/1/23
11/2/23
11/2/23
11/3/23
11/3/23
11/3/23
11/3/23
11/3/23
11/10/23
11/10/23
11/11/23
11/15/23
11/15/23
11/16/23
11/16/23
11/16/23
11/16/23
11/16/23
11/17/23
11/21/23
11/24/23
11/24/23
11/29/23
11/29/23
11/29/23
11/29/23
11/30/23
11/30/23
11/30/23
11/30/23
11/30/23
11/30/23
Amount
$638,773.55
$114,101.52
$32,034.33
$4,079.09
$14,366.94
$35,251.70
$3,425.00
$4,597.88
$3,006.14
$1,516.99
$437.00
$114,939.10
$648,728.32
$32,511.55
$4,238.27
$15,221.76
$8,002.62
$34,119.70
$26,126.22
$125,699.08
$2,600.00
$12,595.40
$126,409.76
$254,074.00
$693,225.49
$115,103.83
$30,366.62
$16,857.83
$14,895.36
$32,119.70
$8,029.68
$2,910.12
LEF
SCE
IRS via F&M
Various
EDD
MidAmerica
VOYA
PARS via U.S. Bank
VOYA
MidAmerica
CalPERS Oct 15-28, 2023
November 2023
November 2023
Oct 29-Nov 11, 2023
November 2023
Nov 12-25, 2023
Nov 12-25, 2023
Nov 12-25, 2023
Oct 29-Nov 11, 2023
Oct 29-Nov 11, 2023
Oct 29-Nov 11, 2023
Oct 29-Nov 11, 2023
Oct 29-Nov 11, 2023
LCEA
The Technology Depot
CalPERS
CalPERS
Various
IRS via F&M
EDD
VOYA
VOYA
VOYA
PARS via U.S. Bank
MidAmerica
Council Approval
Date City Manager
Attest:

City Clerk Director of Finance & Administrative Services

COUNCIL AGENDA
December 12, 2023
TO: The Honorable Mayor and City Council
SUBJECT: Report of City Council Committees’ Activities

INTRODUCTION
A brief update is provided for City Council review on the activities of the following standing committee: Public Safety Committee.

STATEMENT OF FACT
On November 9, 2023, the Public Safety Committee met and discussed:

Community Organizations Firework Stands Update
One vacancy has become available for 2024. A drawing will be held at the beginning of the year for eligible organizations. An interest list was provided for review. The committee received and filed the report without objection,
Crime Trends and Statistics
Overall, Part 1 Crimes are down. There has been an increase in reports of vandalism. A recent trend of “skimming” devices on exterior ATMs (automatic teller machines) was discussed. Safety and awareness tips will be shared with the community, At Lakewood Mall, extra patrols will occur during busy activity times. Traffic reports were presented for review.

Abatement Deputy Update
Updates were provided on several locations. Outreach services were offered alongside Homeless Services Liaison. Abatement Deputy is working with the Homeless Outreach Services Team (HOST) to create a protocol for the bridge at Carson St. and the San Gabriel Riverbed due to an increase of individuals in area.

Community Prosecutor Program Update
Updates were provided on various locations. Deputy District Attorney attending court matters for incidents in Lakewood.

Public Safety Department Update
Community Safety Officer recruitments continue with interviews scheduled for end of November 2023. Monthly block captain liaison meetings will begin January 2023. The Annual Emergency Response Training Exercise was a success.

RI-4
Council Committees' Activities
December 12, 2023

Page 2 ends

Public Outreach
Award of Valor event went smoothly. Holiday safety tips will be publicized. Southwest Patrol success stories will be shared in community newsletter for residents.

Follow-Up Items
Chairman Rogers suggested researching options for better traffic safety practices.

RECOMMENDATION
It is recommended that the City Council receive and file this report.

Thaddeus McCormack
City Manager

COUNCIL AGENDA
December 12, 2023
TO: The Honorable Mayor and City Council
SUBJECT: Monthly Report of Investment Transactions-November 2023

INTRODUCTION
In accordance with California Government Code Section 53607, the City Council has delegated to the City Treasurer the responsibility to invest or to reinvest funds, or to sell or exchange securities so purchased. The California Government Code Section 53607 requires that, if such responsibility has been delegated, then the Treasurer “shall make a monthly report of those transactions to the legislative body.” In compliance with this requirement, the Monthly Report of Investment Transactions is being rendered to be received and filed.

STATEMENT OF MONTHLY ACTIVITY
Date Amount at Cost Rate*
Investment Transaction
$135,219.16
367.25
465.98
109,961.50
3,187.50
1,608.75
454.984.66
194,800.56
149,943.24
299.719.67
4,085.00
600,000.00
3800.00
2,200.00
1,631.25

22.50 387.50
233.75
446.42
1,610.90
833.38
Ol-Nov-23
Ol-Nov-23
Ol-Nov-23
02-Nov-23
04-NOV-23
04-Nov-23
06-Nov-23
06-Nov-23
06-Nov-23
06-Nov-23
08-Nov-23
lO-Nov-23
10-Nov-23
10-Nov-23
11-Nov-23
12-Nov-23
15-Nov-23
15-Nov-23
15-Nov-23
15-Nov-23
15-Nov-23

CAMP POOL
BOND
CORP
CORP
CORP
CORP
TREAS
CORP
TREAS
TREAS
CORP

CAMP POOL
CORP
CORP
CORP
CORP
Interest
Interest
Interest
Purchase
Interest
Interest
Purchase

5.580%

0.565%

0.981%

5.600%

4.250%

1.650%

4.875%

0.776%

1.500%

1.750%

2.150%

5.580%

4.000%

1.125%

0.450%

4.650%

0.550%

4.870%

4.506%

3.390%
Sell
Sell
Sell
Interest
Sell
Interest
Interest
Interest
Interest
Interest
Interest
Interest
Interest
Interest
ABS
CORP
ABS
BOND
ABS
RI-5
Monthly Investment Transactions
December 12, 2023

Page 2 ends

Amount at Cost Rate* Date Investment Transaction
15-Nov-23 ABS
15-Nov-23
15-Nov-23
15-Nov-23
15-Nov-23
15-Nov-23
lS-Nov-23
15-Nov-23
15-Nov-23
15-Nov-23
15-Nov-23
15-Nov-23
15-Nov-23
15-Nov-23
15-N0V-23
15-Nov-23
15-Nov-23
15-Nov-23
15-Nov-23
15-Nov-23
15-Nov-23
15-Nov-23
15-Nov-23
15-Nov-23
15-Nov-23
15-NOV-23
15-Nov-23
15-Nov-23
15-Nov-23
15-Nov-23
15-Nov-23
15-Nov-23
15-Nov-23
15-NOV-23
16-Nov-23
16-Nov-23
1,683.29
2,626.74
375.83
902.42
$1,130.83
106.33
518.92

26.07 876.71
740.00
1,221.21
247.00
850.00
862.00

74.35 501.21
1,372.88
359.67
5,046.88
637.00
Interest
Interest
Interest
Interest
Interest
Interest
Interest
Interest
Interest
Interest
Interest
Interest
Interest
Interest
Interest
Interest
Interest
Interest
Interest
Interest
Interest
Interest
Interest
Interest
Interest
Interest
Interest
Interest
Interest
Paydown
Paydown
Paydown
Paydown
Paydown

5.690%

4.450%

4.510%

4.420%

5.900%

0.580%

4.790%

0.520%

3.970%

3.700%

5.530%

1.040%

1.700%

4.310%

0.550%

5.230%

3.320%

2.375%

5.460%

0.340%

0.380%

3.300%

5.160%

3.660%

2.875%

5.000%

5.480%

0.500%

0.380%

0.520%

0.550%

0.340%

0.500%

5.580%

5.450%
CORP
ABS
ABS
ABS
ABS
ABS
ABS
ABS
CORP
ABS
ABS
CORP
ABS
ABS
ABS
ABS
ABS
TREAS
ABS

5.76 ABS

9.72 ABS
2,970.00
1,311.50
366.00
11,140.63
1,583.33
365.33
CORP
ABS
ABS
TREAS
ABS
ABS

9.68 ABS
3,865.02
5,189.08
10,026.34
2,077.13
3,507.35
2,800,000.00 CAMP POOL
363.33
ABS
ABS
ABS
ABS
ABS
Sell
ABS Interest
Monthly Investment Transactions
December 12, 2023

Page 3 ends

Date Amount at Cost Rate* Investment Transaction
1,518.75 CORP
186.50
Interest
Interest
Interest
Interest
Paydown
Interest
Interest
Purchase
Interest
Interest
Interest
Interest
Interest
Interest
Interest
Interest
Interest
Interest
Interest
Interest
Interest
Interest
Interest
Paydown
Paydown
Interest

4.050%

3.730%

0.370%

5.410%

0.370%

3.150%

0.500%

5.069%

3.430%

4.819%

3.750%

3.224%

4.777%

4.800%

3.347%

4.190%

4.740%

3.243%

4.850%

2.745%

4.650%

2.653%

5.470%

3.750%

4.777%

1.200%

2.046%

2.021%

0.510%

1.375%

3.625%

0.375%

2.625%

1.250%

3.875%

0.750%
17-Nov-23
18-Nov-23
18-Nov-23
18-Nov-23
18-NOV-23
19-NOV-23
20-Nov-23
21-Nov-23
25-Nov-23
25-Nov-23
25-Nov-23
25-NOV-23
25-Nov-23
25-Nov-23
25-Nov-23
25-Nov-23
25-Nov-23
25-Nov-23
25-Nov-23
25-NOV-23
25-Nov-23
25-NOV-23
25-Nov-23
25-Nov-23
25-Nov-23
28-Nov-23
29-Nov-23
29-Nov-23
29-NOV-23
30-Nov-23
30-Nov-23
30-Nov-23
30-Nov-23
30-Nov-23
30-Nov-23
30-Nov-23
ABS

4.31 ABS
1,104.54
5,430.58

1.496.25
$18.75
139,989.52
1,171.92
1,505.94
606.02
1,074.67
1212.26
1,520.00
767.02
1,309.38
1,501.00
1,094.51
1,131.67
514.69

1.472.50
862.23
296.29

96.90 154.75
690.00
34,433.57
132,781.19
150,283.61
261,750.13
14,500.00
1,050.00

8.531.25

1.687.50
4,650.00
1,875.00
ABS
ABS
CORP
ABS
FNMA
FNMA
FNMA
FNMA
FNMA
FNMA
FNMA
FNMA
FNMA
FNMA
FNMA
FNMA
FNMA
FNMA
FNMA
ABS
FNMA
FNMA
CORP
BOND
BOND
BOND
TREAS
TREAS
TREAS
TREAS
TREAS
TREAS
TREAS
Sell
Sell
Sell
Purchase
Interest
Interest
Interest
Interest
Interest
Paydown
* Rates shown for MMF, LAIF, and CAMP are distribution yields. All others are coupon rates.

Monthly Investment Transactions
December 12, 2023

Page 4 ends

INVESTMENT GLOSSARY
ABS (Asset-Backed Securities)
A mortgage pass-through security, collateralized mortgage obligation, mortgage-backed or other pay-through bond, equipment lease-backed certificate, consumer receivable pass-through certificate, or consumer receivable-backed bond.

AGENCY (U.S. Government Agency Issues)
Federal agency or United States government-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises. There are no portfolio percentage limits for U, S. Government Agency issues.

BOND (Municipal Bonds or Note)
Registered treasury notes or bonds issued by states or municipalities, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 United States, in addition to California.

CAMP (California Asset Management Program) Pool and Term A Joint Powers Authority established in 1989 by the treasurers and finance directors of several California public agencies to provide an investment tool at a reasonable cost. Participation is limited to California public agencies. The Pool option offers daily liquidity with a variable rate of return. In recent years the Term option was added offering an investment tool for a fixed period (up to one year) and a fixed rate of return.

CD (Certificate of Deposit)
Negotiable CDs are issued by large banks and are freely traded in secondary markets as short term (2 to 52 weeks), large denomination ($100,000 minimum) CDs, that are either issued at a discount on its par value, or at a fixed interest rate payable at maturity.

COM (Commercial Paper)
Commercial paper of “prime” quality of the highest ranking or of the highest letter and number rating as provided for by a nationally recognized statistical-rating organization.

CORP (Corporate Notes)
Medium-term notes, defined as all corporate and depository institution debt securities with a maximum remaining maturity of five years or less, issued by corporations organized and operating within the Unites States or by depository institutions licensed by the United States, or any state and operating within the United States.

Monthly Investment Transactions
December 12, 2023

Page 5 ends

FNMA (Federal National Mortgage Association)
A government-sponsored, privately owned corporation established to create a secondary market for Federal Housing Administration mortgages.

LAIF (Local Agency Investment Fund, State of California) The Treasurer of the State of California administers this investment pool, providing a high-level of liquidity and strong safety through diversification of investments.

MMF (Money Market Fund)
This is a money market interest-bearing checking account that is fully insured and collateralized.

SUPRA (Supra-National Agency Bonds or Notes)
Supranational bonds and notes are debt of international or multi-lateral financial agencies. The debt is used to finance economic/inffastructure development, environmental protection, poverty reduction and renewable energy around the globe, rated AAA, highly liquid and issued in a range of maturities.

TREAS (U.S. Treasury Notes)
A Treasury obligation of the U.S. Government to provide for the cash flow needs of the Federal Government.

RECOMMENDATION
It is recommended that the City Council receive and file the Monthly Report of Investment Transactions rendered for the month of November 2023.

Jose Gomez
Director of Finance & Administrative Services
Thaddeus McCormack
City Manager

COUNCIL AGENDA
December 12, 2023
TO: The Honorable Mayor and City Council
SUBJECT: Approval of Professional Services Agreement with the Gateway Cities Council of Governments for Implementation of the Gateway Cities Local Solutions Fund

INTRODUCTION
On April 26, 2022, City Council approved an agreement with the Gateway Cities Council of Governments (GCCOG), a California joint powers authority, to implement the Gateway Cities Innovation Plan to hire a Homeless Services Liaison to serve the Local Coordinating Alliance 4 cities of Hawaiian Gardens, Lakewood and Signal Hill. On June 27, 2023, City Council approved an agreement amendment with GCCOG extending funding through December 31, 2023.

SUMMARY
The Homeless Services Liaison program originated from the Gateway Cities Innovation Plan, funded through the LA County Homeless Initiative using Measure H funds, to provide direct homeless outreach coordination services within LCA 4, of which Lakewood has served as the lead agency. Innovation Plan funds from the GCCOG expire December 31 2023.

The GCCOG Board approved an agreement with LA County in May 2023 to receive additional Measure H funding to implement the Gateway Cities Local Solutions Fund to support local initiatives to address homelessness in the Gateway Cities region. The LCA 4 Homeless Services Liaison program is eligible to continue to be funded under the Local Solutions Fund. The term of the agreement is through June 30, 2027, contingent upon sufficient budget allocation is approved by the LA County Board of Supervisors each fiscal. The annual allocation of funding for the LCA 4 Homeless Services Liaison program is $150,000.

RECOMMENDATION
Staff recommends City Council approve a professional services agreement with Gateway Cities Council of Governments for the implementation of the Gateway Cities Local Solutions Fund to continue the LCA 4 Homeless Services Liaison program, and authorize the City Manager to sign the agreement in a form approved by the City Attorney.

Joshua Yordt
Director of Public Safety5
Thaddeus McCormack
City Manager
RI-6

COUNCIL AGENDA
December 12, 2023
TO: The Honorable Mayor and City Council
SUBJECT: Consulting Services Authorization-Ardurra Group -Weingart Sr. Center Improvements

INTRODUCTION
The consulting engineering firm Ardurra has an agreement with the City of Lakewood to assist with various engineering matters and hassubmitted a proposal to provide a constructability review, project management, and construction management for the preliminary phases of the project.

STATEMENT OF FACT
On April 17th 2023, the CIP Committee directed staff to immediately increase resources to expedite the delivery of CIP Projects due to a recent influx of funding, several of which have looming funding deadlines. The City of Lakewood established an on-call consulting services agreement with the Ardurra Group Inc. in June 2023 for engineering and project management services in order to provide an extension of staff due to the Public Works Department’s current workload, Ardurra has provided a proposal under their on-call agreement for the services to accomplish the constructability review, as well as project management and construction management services for the preliminary phases of the project, including the pre-bid phase, bid phase and the contract award phase. The scope of work is comprehensive for the preliminary phases of the project to minimize the use of staff time and to allow staff to focus on the delivery of additional projects. Ardurra is ready to begin work immediately upon authorization of the agreement. Their fee for this scope of work will not exceed $47,905. There are adequate funds in the project account 10309922-58800- 70017 for this work.

RECOMMENDATION
Staff recommends that the City Council authorize work for the Weingart Sr. Center improvements per the Ardurra proposal dated November 28, 2023, in an amount not-to-exceed $47,905, and authorize the Mayor to sign the proposal.

Kelli Pickier
Director of Publicworks
Thaddeus McCormack
City Manager
RI-7
ARDURRA GROUP, INC.
1960 East Grand Avenue, El Segundo, CA 90245 | 310.359.1203 | www.ardurra.com November 28, 2023
Kelli Pickler, Public Works Director
City of Lakewood
5050 Clark Avenue
Lakewood, CA 90712
SUBJECT: REVISED PROPOSAL TO PROVIDE CONSTRUCTION MANAGEMENTSERVICES FOR THEWEINGART SENIOR

CENTER IMPROVEMENTS PROJECT
Dear Mrs. Pickler,
Ardurra Group, Inc. is pleased to present our revisedproposal to the City of Lakewoodto provide professional construction management (CM) services for the Weingart SeniorCenter Improvementsproject in accordance with Attachment “A” – Scope of Services and Attachment “B” – Estimated Fee Allowance.

PROJECT UNDERSTANDING
Ardurra understands the City wishes to retain an experienced construction management team capable of assisting the City with constructability review, the pre-bidphase,bid phaseand contract award/execution phaseservicesof the Weingart Senior Center improvements project. Construction management,administration and inspection services are excluded from this proposal and will be proposed for consideration and implementation at the time that the construction contract is processed for approval by the City.

Ardurra will review the constructability review comments, made previously by the Ardurrateam, to confirm that they have been included in the updated design and perform a final constructabilityreview. Ardurra assumes one backcheck is required. If multiple iterations are needed, Ardurra may seek an amendment for the additional effort required.

This project is intended toreplace depleted infrastructure and facilitate energy efficiency improvements tothe Weingart Senior Center. It is also anticipated that this project will provide functional alterations and repairs to the aging facility, which include, but may not be limited to,partial facility demolition, replacement of existing doorsand hardware, restroom fixtures and finishes, softscape and sidewalk lighting, ADA improvements, electrical improvements, removal of existing trees and indoor planters, upgraded finishes, painting andtrim, mechanical improvements, and replacement of wall-mounted non-illuminated exterior building signage.

As the new project is funded by various federal, state and local agencies, inclusive of Community Development Block Grant (CDBG), it will be imperative that the selected consultant provide expertise to safeguard all project funding and abide by all established funding source requirements, and to assist with mitigating impacts that result from these requirements.

It is Ardurra’s understanding that the estimated budget for construction costs is $4.5 million.

PROPOSED STAFFING
Ardurra proposes Mark Lewis, PE, TEas project director who will overseeMahina Payo-Siu, our proposed construction manager. Mahina will be assisted by Dustin Blackwell, who will provide document/project controls services. Resumes of the proposed team can be found in our on-call professional engineering servicesproposal/contract.

Ardurra’s estimated feeallowanceto provide the services outlined in this proposal is provided at the end of this document.

ARDURRA
City of Lakewood
November 28, 2023

Page 2 ends

We look forward to assisting the City with successfully engaginga qualified construction contractor for this project. If there are any questions regarding this proposal, please contact Omar Alameddineat 949.533.3012or [email protected] or Mark Lewis at 949.677.0391 or [email protected].

Respectfully submitted,
Ardurra Group, Inc.

Omar Alameddine Mark Lewis, PE, TE
Project and Construction Management Group Leader Project Director, Municipal Services Professional Construction ManagementServices for City of Lakewood Weingart SeniorCenter Improvements Project
3 | page
ATTACHMENT “A”

SCOPE OF SERVICES
Pre-Bid Phase Services
Biddability/Constructability:The Ardurra constructability/biddability review methodologyand scope of services is detailed below.
 Constructability Review of Bid Documents
Constructability reviews will be conducted as directed by the City. A punch list of comments and recommendations will be submitted to the City for consideration and implementation with the project architect.

The CM team will review the constructability review comments, made previously by the Ardurra team, to confirm that they have been included in the updated design and perform a final constructability review.

The CM team will review the plans for biddability and constructability and identify potential value engineering solutions, ambiguities, conflicts and/or omissions apparent during its review. The bid documents and technical specifications will also be reviewed for potential duplication/overlap of clauses, conflicts, proper placement of critical requirements within the order and precedence of documents. Ardurra will also recommend key contract provisions to provide the necessary controls and remedies for the City to maintain a proactive approach on the project.

The CM constructability/biddability review typically involves the following:
– Check pothole data and as-built underground and overhead utility information (as applicable)against proposed design and assist the design team in resolving any resulting conflicts. – Identify and implement quantity measurement methodologies to obtain the most efficient and accurate field measurements during construction.
– Compareplan notes with standard and special revisions, eliminating and/or removing any conflicts/ overlapping requirements.
– Check quantities (as applicable).
– Check construction notes and proposed improvements against bid items and bid item descriptions/identify and resolve apparent inconsistencies and/or gaps.
– Compare proposed removals with proposed improvements and existing field conditions. – Recommend special provisions language for project-specific and time-tested public contract remedies. – Recommend order and precedence revisions and/or standard specification modification, as applicable. – Recommend bid item allowances, alternates and minimum performance requirements, contractor deferred design items, e.g., detailed traffic control phases, pedestrian safety measures, public relations activities, SWPPP/NOI development and processing, etc.
– Establish bid evaluation criteria. Prepare Request for Bid documents. – Project Phasing: Minimum phasing plans or narrative requirements will be recommended for inclusion in the bid documents,and a separate bid line item(s) willbe established to identify the adequacy of the bidders’ intent to facilitate the necessary phasing requirements. Additionally, separate sub-milestones can be established (with separately calculated liquidated damages attached) to trackthat the phases are properly carried out to maintain continuous and unobstructed use of critical existing operations (if any). /v

ARDURRA
Professional Construction ManagementServices for City of Lakewood Weingart SeniorCenter Improvements Project
4 | page
– Project Scoping:Check for clear identification of project limits. For unit price contracts with budgetary limits (e.g., projects with indefinite paving rehabilitation areas),methodology to maintain quantities delivered within the budget program will be developed and implemented into the bid documents and project procedures.

Bid Phase Services
 Administer the bid process using the City’s bid distribution system.  Coordinate with the City Clerk’s Office and the Public Works Department to establish advertising dates, arrange pre-bid meeting and the bid opening date.
 Participate in pre-bid meeting to assist with answering bidder questions.  Confirm that the project is advertised in appropriate publications and online contractor bid announcement services. Directly contact contractors specializing in this type of construction to encourage their participation.  Assist with coordination with the City and other affected agencies/agencies having jurisdiction, as necessary.  Assist City staff in conducting public outreach and communications program for the project, including providing regular status updates of ongoing construction activities, budget and schedule; providing progress photos or videos of construction activities; attending and/or participating in up to two (2) community meetings or events; and addressing or responding to residents’ questions and concerns as they may arise.  Assist with the development of responses to bidder questions during bidding period.  Conduct reference checks on the low bidder.
 Check state licenses of bidder and subs.
 Review insurance and bonds for compliance with contract documents.  Compile bid analysis:
– Tabulate all bids with detailed breakdown with comparison to latest construction estimate. – Identify apparent unbalancing within bids.
– Identify apparent missing items.
– Monitor and document that all funding requirements are included in the bid documents. – Assist with addressing minor omissions or administrative issues as approved by the City. – Repeat above steps for next bidder if as-bid numerically low bidder appears to be unresponsive(additional allowance may be required).
 Assist with compiling recommendation to award to the successful bidder. – Make recommendation for confirmation of lowest responsive and responsible bidder with detailed basis, particularly if the as-bid numerically low bidder is not recommended.  Assist in preparation of staff reports for City Council contract awards.

Contract Award/Execution Services
 Attend City Council meeting for award of the construction contract.  Assist with coordinating contractor documentation requirements to support execution of contract.  Assist with expediting contract execution by the parties.  Assist with coordination with the City and other affected agencies/agencies having jurisdiction, as necessary.  Assist the City in preparing the agreement with the selected contractor. /v

ARDURRA
Professional Construction ManagementServices for City of Lakewood Weingart SeniorCenter Improvements Project
5 | page
ATTACHMENT “B”

ESTIMATED FEE ALLOWANCE
Notes:Terms and conditions shall be pursuant to the City of Lakewood On-Call Professional Engineering Services Contract dated June 13, 2023.

Role / Name Total
Hours
Hourly
Rate
Project Director/Agency Advisor 10.00 $ 240.00
Construction Manager 45.00 $ 230.00
Project Controls Engineer 85.00 $ 175.00
Role / Name Total
Hours
Hourly
Rate
Project Director/Agency Advisor 6.00 $ 240.00
Construction Manager 20.00 $ 230.00
Project Controls Engineer 40.00 $ 175.00
Role / Name Total
Hours
Hourly
Rate
Project Director/Agency Advisor 6.00 $ 240.00
Construction Manager 10.00 $ 230.00
Project Controls Engineer 20.00 $ 175.00
$ 13,040.00
Subtotal Bid Phase $ 27,625.00
Bid Phase
Extended
Fee
$ 1,440.00
$ 4,600.00
$ 7,000.00
City of Lakewood
Construction Management Services for the
Weingart Senior Center Improvements Project
Total Estimated Fee $ 47,905.00
$ 3,500.00
Extended
Fee
$ 2,300.00
Contract Execution Phase
$ 1,440.00
Subtotal Contract Execution Phase $ 7,240.00
Pre-Bid Phase
Extended
Fee
$ 10,350.00
$ 14,875.00
$ 2,400.00
Subtotal Bid Phase
/v

ARDURRA
II
•i
>

CITY COUNCIL AGENDA
December 12, 2023
TO: Honorable Mayor and Members of the Council
SUBJECT: Lease Agreement between the City of Lakewood and Big Ben Engineering

INTRODUCTION
Big Ben Engineering (“Big Ben”), contractors for Golden State Water Company, recently approached the City of Lakewood (“City”) requesting a permit to conduct a water main replacement project along Pioneer Boulevard between Del Amo Boulevard and 206th Street. As part of the request for permit, Big Ben is also requesting to lease Housing Successor Agency owned property located at 20525-20529 Pioneer Boulevard, situated at the northwest comer of Pioneer Boulevard and 206th Street for staging purposes for the water main replacement project.

STATEMENT OF FACT
Big Ben is proposing to begin a water main replacement project on December 18, 2023 along Pioneer Boulevard between 206th Street and Del Boulevard. Other streets included in this project are Roseton Avenue, Alburtis Avenue and 205th Street. The project is expected to take place for approximately four (4) months, commencing on December 18, 2023 until April 30, 2024 or until the project is complete, whichever comes first. The property is approximately 12,800 square feet in area and Big Ben is proposing to use the site as a staging area for the water main replacement project. The City will collect $3,000,00 monthly for the lease of the property.

The former Lakewood Redevelopment Agency (“Former Agency”) owned this property and slated it for development of affordable housing. The Former Agency was dissolved in February of 2012 and the City is the successor to the “housing assets” of the Former Agency. In its capacity as Housing Successor, the City owns this property and is currently negotiating with a developer for an affordable housing project, Should title to this property transfer prior to completion of the water main replacement project, the developer will carry the lease until the project is complete.

RECOMMENDATION
Staff recommends that the City Council authorize the execution of the Lease Agreement between the City of Lakewood and Big Ben Engineering for the use of the property located at 20525- 20529yffione/
r Boulevard for the purpose of staging for a water main replacempnfproject.

Abel Avalos
Director of Community Development
Thaddeus McCormack
City Manager
RI-8

LEASE AGREEMENT FOR USE OF THE PROPERTY LOCATED AT
20525-20529 PIONEER BOULEVARD FOR STAGING PURPOSES FOR

THE INSTALLATION OF A NEW WATER MAIN
This Agreement, made and entered into this 12th day of December, 2023, by and between the City of Lakewood, a municipal corporation, hereinafter referred to as “CITY”, and Big Ben Engineering, Contractors for Golden State Water Company, a Subsidiary of American States Water Company, hereinafter referred to as “TENANT”.

WITNESSETH:

WHEREAS, the City Council of the City of Lakewood authorizes the execution of a lease agreement for the use of the property located at 20525-20529 Pioneer Boulevard, Lakewood, CA as a temporary staging site for a water main replacement project taking place in the vicinity of the site for approximately four months commencing December 18, 2023
WHEREAS, said Tenant will occupy the site to perform a water main replacement project; and;
WHEREAS, the Tenant’s use ofsaid premises is a public purpose; NOW THEREFORE, THE CITY AND TENANT AGREE AS FOLLOWS:

1. The City does hereby lease to Tenant the exclusive right to occupy the property located at 20525-20529 Pioneer Boulevard, Lakewood, California, and hereinafter referred to as “property” for a term commencing December 18, 2023 until April 30, 2024 or until the project is complete, whichever comes first.

2. The parties hereto agree that the property is approximately 12,800 square feet in area and the City does hereby find and determine that the reasonable lease value of the property is $3,000.00 a month for the lease. It is therefore agreed by and between the parties hereto that Tenant shall pay the monthly lease payments to the City for the use of the property by the 10th day of each calendar month following each month in which Tenant occupies the property during the term of this agreement. Lease payments for any portion of a month shall be prorated accordingly.

3. It is understood by and between the parties hereto that Tenant will cover the site to prevent exposure of oil, gas and other hazardous materials to the site. All storage on the property shall be exclusively limited to equipment and materials necessary for the water main replacement project. All debris and backfill material kept on the site shall be maintained in a manner to prevent exposure to the site.

4. It is understood by and between the parties hereto that Tenant will provide all personnel and equipment necessary for the purpose of conducting a water main replacement project and that Tenant agrees to observe and comply with all rules, regulations and laws in effect or which may be in effect or which may be enacted during the continuation of this agreement by the City, State of California, and Federal Government, applicable to the occupancy and use of the property.

5. It is understood and agreed that Tenant shall be responsible for any damage to the premises and/or any liability imposed for damages or injuries pursuant to Government Code Section 810.8 where occurring by reason of anything done or omitted to be done by Tenant, its officers or employees or its invitees or guests while occupying the property. Further, it is understood and agreed that Tenant shall be responsible for the operation of the staging site and water main replacement project conducted on the property and City roadways and in that regard, neither City or any officer or employee thereof shall be responsible for the operation of the project or for any cost and chargesincurred in the conducting of the project when due and owing. Pursuant to Government Code Section 895.4, Tenant shall fully indemnify and hold harmless City, and each officer or employee thereof, from any liability' imposed for damages or injuries arising out of the foregoing.

6. Tenant covenants and agrees to maintain workmen’s compensation insurance policy as required by law and in addition comprehensive liability and property damage insurance in the amount of one million dollars ($1,000,000,00). The policy shall contain a provision that the same cannot be cancelled with at least thirty (30) days written notice to the City thereof and shall name the City as an additional insured.

7. Upon termination of this agreement, Tenant agrees to vacate the property and restore the property to the same condition the property was in prior to occupancy by Tenant except where directed otherwise by the Director of Community Development.

8. The parties further agree that the City maintains the right to transfer this agreement upon transfer of Title of the Property.

9. Any notice required to be given under this agreement shall be in writing and either personally served, mailed or emailed to the parties as follows:

City of Lakewood
Attention Abel Avalos, Director of Community Development 5050 Clark Avenue
Lakewood, CA 90712
[email protected]
Big Ben Engineering
Attention Sep Sharifi, President
4790 Irvine Boulevard #105-404
Irvine, CA 92620
[email protected]
IN WITNESS WHEREOF, the City has, by Motion, caused these presence to be executed by the Mayor and attested by the City Clerk and the Tenant has caused the same to be executed the day and year first written above.

CITY OF LAKEWOOD, A Municipal Corporation
By.

Mayor, Ariel Pe
ATTEST:

City Clerk, Jo Mayberry

BIG BEN ENGINEERING
By.

President, Sep Sharifi

COUNCIL AGENDA
December 12, 2023
TO: The Honorable Mayor and City Council
SUBJECT: Approval of After Study and Design Engineering Services for Uncontrolled Marked Crosswalks

INTRODUCTION
On November 24, 2021 the City Manager authorized the first phase in a comprehensive study of uncontrolled marked crosswalksin an amount not-to-exceed $18,480, to allow Willdan to collect data on twenty-eight uncontrolled marked crosswalks throughout the City. On December 14, 2021, City Council authorized the second phase of the study to determine if traffic control devices are warranted to address the needs of the crosswalk locations. In 2022, the City installed traffic controls devices at five pilot uncontrolled marked crosswalk locations. Now, staff is proposing that an “after study” of the five uncontrolled marked crosswalk pilot locations be conducted, as well as a technical memorandum which will address the effectiveness of the installations. In addition, staff proposes design engineering services commence for an additional 23 uncontrolled marked crosswalk locations city-wide.

STATEMENT OF FACT
Staff asked Willdan for a proposal to conduct an after study report of the five uncontrolled marked crosswalk pilot locations where the City implemented uncontrolled marked crosswalk improvements in 2022, These include the following locations:

1. Bellflower Blvd. and Hardwick St.

2. Bloomfield Ave. and Lemming St.

3. Del Amo Blvd. and Coldbrook Ave.

4. Norwalk Blvd. and 207th St.

5. Pioneer Blvd. and 205th St.

Willdan will field review each pilot location, and gather reported collision history from January 1, 2016 to the most current date available at each of the study locations. Willdan would then use their sub-consultant, National Data and Surveying Services (NDS) to collect 48 hours of video surveillance at each of the pilot locations. The surveillance would capture actions of pedestrians using the crossing and the motorists impacted by the crossings. The data will be collected when local schools are in session and under good weather conditions. NDS will analyze the captured data for four hours each day at each pilot location. The data will identify the amounts of pedestrians using the crosswalk as well as the vehicles traveling through the crosswalk. In addition, Willdan will develop a survey to determine the perception of the benefits and/or detriments to the improvements. The survey would be distributed to crossing guards stationed at each of the pilot locations, City staff who may have experience at those locations, Sheriff personnel who may have experience at those locations, and other staff as appropriate.

Ri-9
Approval of After Study for Uncontrolled Marked Crosswalks December 12, 2023

Page 2 ends

Willdan will review all of the information collected to develop an after study report. After the development of the after study report, Willdan would work with City staff to develop a technical memorandum. The memorandum will document any problems that occurred after the installation and what changes or revisions were made in response to the issues. The memorandum will include updated record drawings for the locations. In addition, Willdan will prepare and attend up to three public hearings. The proposed fee for the scope of work is $21,241.

Staff has also requested a proposal from Willdan to commence with design engineering services for 23 other locations city-wide that have uncontrolled marked crosswalks. The crosswalk locations are listed in the proposal. The design for the uncontrolled marked crosswalk improvements will be based on the study conducted by Willdan that analyzed if additional traffic controls are appropriate with respect to maintenance needs and the current California Manual on Uniform Traffic Control Devices (CA-MUTCD) standards. Improvements would include replacement or refresh of crosswalks with ladder crosswalks; installation of yield limit lines and signage; installation of school crosswalk signs; relocation or refresh of pavement markings; upgrade and installation of ADA curb ramps; and installation of rapid rectangular flashing beacons (RRFB), and other improvements as recommended. As part of their design engineer services, Willdan would prepare the contract documents suitable for bidding; inclusive of plans, specifications, and engineer estimates. The proposal also includes engineer support services during the construction phase of the project, estimated to commence in March of 2024. The proposed fee for the scope of work is $134,000.

In order to fully fund the scope of work for both proposals,staff needs authorization to appropriate additional funds in the project account, 10109908-58800-60062, in the amount of $100,000. 0 RECOMMENDATION
That the City Council:

1. Appropriate $100,000 in the project account 10109908-58800-60062 from the General Fund, for the after study and design engineering services related to the uncontrolled marked crosswalks.

2. Authorize Willdan Engineering’s services to conduct the after study and develop the technical memorandum of the uncontrolled marked crosswalks pilot locations, under their existing Agreement for Engineering Services, in an amount of $21,241 and authorize the Mayor to sign the proposal.

3. Authorize Willdan Engineering’s design engineer services for the additional 23 uncontrolled marked crosswalks, under their existing Agreement for Engineering Services, in an amount of $134,000 and authorize the Mayor to sign the-prop° salKelli Pickier
Director of Public Works
Thaddeus McCormack
City Manager
December 4, 2023
Ms. Kelli Pickler
Director of Public Works
City of Lakewood
5050 Clark Avenue
Lakewood, CA 90713
Subject: Proposal to Provide Professional Engineering Services for the After Study Report and Technical Memorandum of Uncontrolled Marked Crosswalks Pilot Locations
Dear Ms. Pickler:

Willdan Engineering is pleased to submit this proposal to the City of Lakewood (City) for the After Study Report of the 5 uncontrolled marked crosswalk Pilot locations. The After Study is intended to help identify benefits of the crosswalk improvements implemented in 2022. The Technical Memorandum will address the hardware and operational challenges of the installations. The Memorandum will also provide updated Record Drawings of the locations.

The 5 Pilot Locations include:

1. Bellflower Boulevard and Hardwick Street (#1)

2. Bloomfield Avenue and Lemming Street (#2)

3. Del Amo Boulevard and Coldbrook Avenue (#9)

4. Norwalk Boulevard and 207th Street (#17)

5. Pioneer Boulevard and 205th Street (#18)
The following is our proposed scope of work, schedule, and fee for the After Study and Technical Memorandum:

SCOPE OF WORK

AFTER STUDY ANALYSIS
Task 1: Field Observations and Data Collection
Willdan will field review each Pilot location. The field observations will identify any changes from the original installation plans of the locations. This could include changes in pole/post locations, equipment changes, etc.

Willdan will gather the reported collision history from January 1, 2016 to the most current date available at each of the study locations. The Pilot Location Study dated March 9, 2022 reviewed collision history from January 2016. The after data may not provide a “deep” analysis of reported collisions, but it is the data that will be available for this After Study.

Willdan will utilize our subconsultant, National Data & Surveying Services – NDS, to collect 48 hours of video surveillance at each of the Pilot locations. This surveillance will capture the actions and reactions of pedestrians using the crossings and the motorists’ impacted by the crossings. The data will be collected when local schools are in session and under good weather conditions.

WILLDAN
562.908.6200 | 800.499.4484 | fax: 562.695.2120
13191Crossroads Parkway North, Suite 405,Industry,California 91746-3443 | www.willdan.com City of Lakewood
After Study Report
Uncontrolled Marked Crosswalks Pilot Locations
December 4, 2023

Page 2 ends

NDS will review and breakdown the captured data for 4 hours (2 AM and 2 PM) for each day at each Pilot location. These AM and PM peak hours will be the same hours studied during the Pilot Location study. The data will include the number of vehicles traveling through the crosswalk and the number of pedestrians using the crosswalk. The data will further identify the following:
• Do the pedestrians push the button to activate the rectangular rapid flashing beacon (RRFB) or edge-lit signs?
• Do the motorists/vehicles stop for the pedestrians after they have pushed the button:
o When the pedestrian is still on the sidewalk?
o When the pedestrian is in the crosswalk
• If the pedestrian did not push the button (nothing is flashing), did the motorist/vehicle stop for the pedestrian in the crosswalk?
Deliverables:
✓ 1-year “plus” reported collision history
✓ AM and PM peak hour data sets (4 hours for 2 days)
✓ Video Surveillance files
Task 2: Survey of Crossing Guards and Knowledgeable Staff Willdan will develop a Survey to determine the perception of the benefits/detriments of the improvements. Distribution of this Survey will require assistance from Lakewood City Staff. Willdan recommends the Survey be distributed to:
• The crossing guards stationed at each of the Pilot locations, • Knowledgeable City staff who have experience at the locations, (field crews, bus/transit staff, Public Safety staff, street sweeping/trash drivers, etc.), • Knowledgeable Sheriff personnel who have experience at the locations, and • Other knowledgeable staff as appropriate.

Deliverables:
✓ Draft Survey for review (electronic copy)
✓ Final Survey (electronic copy)
Task 3: After Study Report
Willdan will review the information collected from Tasks 1 and 2 to develop the After Study Report.

The Report will summarize the methodology and findings at the 5 Pilot locations. The After Study Report will be submitted to the City for review and comment.

Comprehensive. Innovative. Trusted.

City of Lakewood
After Study Report
Uncontrolled Marked Crosswalks Pilot Locations
December 4, 2023

Page 3 ends

Electronic PDF versions of the DRAFT After Study Report will be prepared and delivered to the City for review by City staff. Upon receipt of City review comments, Willdan will prepare a FINAL Report signed, stamped, and dated by a Traffic Engineer licensed in the State of California. The FINAL Report will be provided to the City in an electronic PDF format.

Deliverables:
✓ Draft After Study Report (electronic copy)
✓ Final After Study Report (electronic copy)

TECHNICAL MEMORANDUM
Task 4: Meeting with City Staff
Willdan will schedule a meeting with City Staff to discuss and clarify the hardware and operational experience of the RRFB and edge-lit sign improvements implemented at the 5 Pilot locations. This meeting will provide the primary information for the development of the Technical Memorandum.

The Memorandum will document problems that occurred after the installations and what changes/revisions were made in response to those issues.

Deliverables:
✓ Meeting minutes within 7 working days
Task 5: Technical Memorandum
Willdan will prepare a Technical Memorandum documenting the hardware and operational experience of the Pilot Locations. This Memorandum will include updated Record Drawings for the locations.

Electronic PDF versions of the DRAFT Technical Memorandum will be prepared and delivered to the City for review by City staff. Upon receipt of City review comments, Willdan will prepare a FINAL Technical Memorandum, stamped, and dated by a Traffic Engineer licensed in the State of California. The FINAL Memorandum will be provided to the City in an electronic PDF format.

Deliverables:
✓ Draft Technical Memorandum (electronic copy)
✓ Final Technical Memorandum (electronic copy)
Task 6: Public Meetings/Hearings Attendance
Attendance and preparation for up to three (3) public meetings/hearings are included as part of this proposal. Attendance and preparation at any additional meetings/hearings will be on a time-andmaterials basis using the hourly rates identified in the current agreement with the City of Lakewood.

Comprehensive. Innovative. Trusted.

City of Lakewood
After Study Report
Uncontrolled Marked Crosswalks Pilot Locations
December 4, 2023

Page 4 ends

PROPOSED SCHEDULE
Upon authorization to proceed, we estimate that approximately 8 weeks from receipt of AM and PM peak surveillance analysis will be needed to provide the DRAFT After Study Report and DRAFT Technical Memorandum to the City for review. Willdan will provide the FINAL Report and Memorandum 10 working days after receipt of comments by the City.

PROPOSED FEE
We propose to provide the above professional services of the After Study Report and Technical Memorandum for a not-to-exceed fee of $21,241.00.

Please indicate the City’s approval and authorization to proceed by either printing out and signing two originals and returning one hard copy original to our office, or by scanning one signed original and returning it by e-mail.

Thank you for the opportunity to be of service to the City of Lakewood. We recognize the importance of this project to the City and are committed to realizing its timely and successful completion. Should you have questions regarding this proposal, please contact me at (562) 364- 8526 or via email [email protected].

Respectfully submitted, Approval and Authorization to Proceed By:

WILLDAN ENGINEERING CITY OF LAKEWOOD
Jeffrey Lau, PE, TE, ENV SP __________________________________ Deputy Director of Engineering Signature
__________________________________
Title
__________________________________
Date
910005/WW.00.60/P23-362_25896
Comprehensive. Innovative. Trusted.

December 4, 2023
Ms. Kelli Pickler
Director of Public Works
City of Lakewood
5050 Clark Avenue
Lakewood, CA 90713
Subject: Proposal to Provide Professional Engineering Design Services for the Uncontrolled Marked Crosswalk Improvements – 23 Locations Dear Ms. Pickler:

Willdan Engineering (Willdan) is pleased to submit this proposal to the City of Lakewood (City) to provide professional engineering design services for the Uncontrolled Marked Crosswalk Improvements. Uncontrolled marked crosswalk improvements are based on a study by Willdan Engineering that analyzed if any additional traffic controls are appropriate with respect to maintenance needs and current California Manual on Uniform Traffic Control Devices (CA-MUTCD) standards. Improvements include removal of uncontrolled crosswalks; replacement/refresh with ladder crosswalks; installation of yield limit lines and signs; installation of school crosswalk signs; relocation/refresh of pavement markings; upgrade/installation of ADA curb ramps; and installation of rapid rectangular flashing beacons (RRFB). We understand that the City desires to construct the proposed improvements starting in March 2024.

The following crosswalk locations have improvements:

1. Bloomfield Avenue and 215th Street

2. Candlewood Street and Hayter Avenue

3. Candlewood Street and Briercrest Avenue

4. Centralia Street and Eastbrook Avenue

5. Centralia Street and Dunrobin Avenue

6. Clark Avenue and Michelson Street

7. Del Amo Boulevard and Claretta Avenue

8. Downey Avenue and Michelson Street

9. Harvey Way and Marwick Avenue

10. Harvey Way and Lomina Avenue

11. Harvey Way and Gondar Avenue

12. Lakewood Boulevard and Hedda Street

13. Lakewood Boulevard and Michelson Street

14. Woodruff Avenue and Hardwick Street

15. 214th Street and Rossford Avenue

16. 215th Street and Rossford Avenue

17. Fairway Drive and Country Club Drive

18. Haston Place and 214th Street

19. Massinger Street and Alburtis Avenue

20. Michelson Street and Coke Avenue

21. Michelson Street and Pearce Avenue

22. Roseton Avenue and 205th Street

23. St. Pancratius Place and Verdura Avenue
Improvements at each crosswalk location can be found in Attachment A. The improvement list is taken from the Final Draft Analysis of Uncontrolled Marked Crosswalks – 23 Locations and is subject to change.

The following is our proposed scope, schedule, and fee:

WILLDAN
562.908.6200 | 800.499.4484 | fax: 562.695.2120
13191Crossroads Parkway North, Suite 405,Industry, California 91746-3443 | www.willdan.com City of Lakewood
Uncontrolled Marked Crosswalk Improvements – 23 Locations December 4, 2023

Page 2 ends

SCOPE OF WORK
Task 1 - Project Management

1. Attend a pre-design (kick-off) meeting with City representatives to review the project, in detail, to determine the City’s specific requirements concerning the project.

2. Maintain continuous communication with the City of Lakewood Project Manager, including meetings to review project status at 90%, and 100% completion.

3. Provide agendas of special items for discussion, and minutes listing agreed actions.

4. Provide a detailed project schedule with updates on a monthly basis.

5. Maintain continuous awareness of the status of each task as it proceeds and make provisions to expedite and resolve any difficulties that may impede progress.

6. Proactively initiate communications with City Project Manager and/or staff when questions arise due to inconsistency in the flow of work production.

Task 2A – Preliminary and Final Design for Proposed Crosswalk Improvements Task 2A.1 – Records Research and Field Reviews

1. Obtain available as-built drawings, survey data and utility contact information from the City of Lakewood. The research may include assessor parcel maps, tract maps, recently completed or planned improvement drawings, as-built drawings for street, traffic signals, signing, striping, and storm drain, as well as municipal improvements such as water and sewer as-builts, atlases, and/or GIS information. Willdan Engineering will verify known underground utilities to avoid conflicts with proposed traffic signal improvements.

2. Perform field investigations to verify existing conditions once base plans have been completed with existing as-built records. A photographic catalog of existing conditions will be provided for the design project limits.

3. Conduct topographic land surveys for horizontal and vertical control for curb ramp upgrades as needed.

Task 2A.2 – Utility Coordination

1. Provide utility coordination, including notices to all utility companies in accordance with City’s procedures. All documentation of contacts and responses will be copied to the City.

Willdan will prepare utility notices and deliver them to the City for mailing under City letterhead. If so desired by the City, Willdan can transmit these notices under Willdan’s letterhead; however, the City shall be responsible for any fees assessed to Willdan by the utility companies. In either case, all responses, questions, and correspondence from the utility companies will be addressed to Willdan’s Utility Coordinator.

Comprehensive. Innovative. Trusted.

City of Lakewood
Uncontrolled Marked Crosswalk Improvements – 23 Locations December 4, 2023

Page 3 ends

2. Review project scope of work with each utility company at the preconstruction conference.

Identify possible conflicts and work with each utility to assure that its facilities will be protected if properly identified.

3. Coordinate relocation work by utility companies as needed within the project limits.

Task 2A.3 - Plans, Specifications and Estimates (PS&E)

1. Prepare a title sheet which will include but not be limited to the following: City project number, plan sheet index, vicinity map, and general notes.

2. Prepare curb ramp detail plans (3 sheets) at a scale of 1”=10’. Plans will conform to current ADA standards and specifications.

3. Prepare signing and striping plans (5 sheets) at a scale of 1”=40’. Plans will conform to the latest edition of the CA MUTCD, Caltrans Standard Plans and Standard Specifications. Plan will include removal and refresh of crosswalks, installation of ladder crosswalks and yield lines, installation of advanced signs and installation of solar RRFB systems.

4. Prepare a detailed engineer’s estimate in Microsoft Excel spreadsheet format. The items will be arranged in chronological order of construction. The estimate will be based upon recent bid prices for similar projects as maintained by the City, Willdan, and Caltrans.

Backup quantity calculations will be provided showing detailed computations for accuracy of the quantities upon request.

5. The City will provide Willdan with its boilerplate specifications and general technical provisions in the current version of Microsoft Word for Windows format. Willdan will be responsible for compiling the project specifications, signed by a civil engineer registered in the State of California, which are complete and ready for bidding purposes. The latest edition of the Greenbook (Standard Specifications for Public Works Construction and subsequent amendments) will be used on the project, except for traffic design. The technical portion of the Caltrans Standard Specifications will be used for the traffic design.

Task 2B – Preliminary and Final Design for Crosswalk Removals (Optional Task) Task 2B.1 – Records Research and Field Reviews

Comprehensive. Innovative. Trusted.

City of Lakewood
Uncontrolled Marked Crosswalk Improvements – 23 Locations December 4, 2023

Page 4 ends

Task 2B.2 - Plans, Specifications and Estimates (PS&E)

1. Prepare signing and striping plans (1 sheet) at a scale of 1”=40’ for crosswalk removals at up to four (4) locations. Plans will conform to the latest edition of the CA MUTCD, Caltrans Standard Plans and Standard Specifications. Plans will also include removal of crosswalk related signs and pavement markings.

2. Prepare a detailed engineer’s estimate in Microsoft Excel spreadsheet format. The items will be arranged in chronological order of construction. The estimate will be based upon recent bid prices for similar projects as maintained by the City, Willdan, and Caltrans.

Backup quantity calculations will be provided showing detailed computations for accuracy of the quantities upon request.

Task 3 – Engineering Support During Construction

1. Respond to questions during project advertising and prepare project addenda, as necessary.

2. Attend the pre-construction meeting, job walk, and job-site meeting over the course of the construction schedule.

3. Assist the City during the construction support phase by reviewing and approving material submittals, responding to RFIs, and assisting with contract change orders as necessary. If a design oversight is identified in the design plans or specifications, we will make the appropriate design correction at no cost.

4. Provide engineering design services for revision to construction documents resulting from changed field conditions upon written authorization from the City. A detailed scope and fee estimate for each revision will be submitted to the City for approval.

5. Incorporate redline comments prepared by the Contractor and City’s Construction Manager on the signed design plans to provide As-Built Record Drawings. Willdan will assume no responsibility for the accuracy of the information provided by the City’s Construction Manager and the Contractor.

Task 4 – Advertising and Bidding Support (Optional Task)

1. Assist the City with advertisement and notifying various plan holders of the project.

2. Assist City staff with the preparation of the staff report to City Council.

3. Review and analyze bid results and prepare bid summary.

4. Verify contractor’s references, bonding, insurance, and contractor’s license for the three lowest bidders.

5. Provide recommendation to award project.

Comprehensive. Innovative. Trusted.

City of Lakewood
Uncontrolled Marked Crosswalk Improvements – 23 Locations December 4, 2023

Page 5 ends

PROPOSED SCHEDULE
We estimate that preliminary PS&E can be completed for review within six (6) weeks from the receipt of the signed proposal and the Notice-to-Proceed. Final PS&E can be completed within two (2) weeks after receipt of City Comments.

PROPOSED FEE
We propose to provide the above engineering design services, including all optional tasks, for a not-to-exceed fee of $134,000 based on the following breakdown:

Task 1 – Project Management $ 10,000
Task 2A – Preliminary and Final Design for Proposed X-Walk Improvements $ 110,000 Task 2B – Preliminary and Final Design for Crosswalk Removals (Optional) $ 5,000 Task 3 – Engineering Support During Construction $ 6,000 Task 4 – Advertising and Bidding Support (Optional) $ 3,000 Total $ 134,000
Please indicate the City’s approval and authorization to proceed by either printing out and signing two originals and returning one hard copy original to our office, or by scanning one signed original and returning it by e-mail.

Respectfully submitted, Approval and Authorization to Proceed By:

WILLDAN ENGINEERING CITY OF LAKEWOOD
Jeffrey Lau, PE, TE, ENV SP __________________________________ Deputy Director of Engineering Signature
__________________________________
Title
_________________________________
Date
910005/WW.00.60/P23-368R1_25907
Comprehensive. Innovative. Trusted.

Attachment A
Table 8 - Summary of Improvements
Crosswalk Remove
Uncontrolied
Crosswalk
Replace / Refresh
with Ladder
Crosswalk
Install Yield Install FYG SW24-2(CA) Relocate / Refresh Limit Lines and and/or SW24-3{CA) SLOW SCHOOL XING
R1-5 Signs
Iimprove /
Install ADA
Ramps
Install
RRFB Location 1 Comments
Color Type Signs Markings
CATEGORY: 5 PEDESTRIANSfCYCLISTS OR LESS
4 Candlewood Sl-Hayler Av While Standard X If these crosswalks are removed, the relocation of bus stops adjacent to the crosswalks should be discussed with the transit authorities. The crosswalk removal should remove the demand of bus riders crossing at this uncontrolled location.
14 Harvey Wy-Gondar Av Yellow Standard X X X X X II should be noied that the existing ADA ramp on the south side of Harvey Way is a dnveway to a residential home.

Consideralion should be given to the possible relocation of the crosswalk to the east leg of the intersection to aviod the residential dnveway.
15 Lakewood Blvd-lHedda St White Standard X If these crosswalks are removed, the relocation of bus stops adjacent to the crosswalks should be discussed with the transit authorities. The crosswalk removal should remove the demand of bus riders crossing at this uncontrolled location.

Lakewood Blvd-Michelson St Standard If these crosswalks are removed, the relocation of bus stops adjacent to (he crosswalks should be discussed with the transit authorities. The crosswalk removal should remove the demand of bus riders crossing at this uncontrolled location.
16 White X
19 Woodruff Ave-t lardwick St While Ladder X {Yellow) X X X X 25 Michelson Si-Coke Ave Yellow Siandard X X X X X
CATEGORY: 6 TO 29 PEDESTRIANS/CYCLISTS
3 Bloomfield Av-2151h St Yellow Ladder X X X
5 Candlewood Sl-Briercrest Ave Yellow Standard X X X X X 11 Downey Ave - Michelson St Yellow Ladder X X X X
12 Harvey Way-Marwick Ave Yellow Standard X X X X X
13 Harvey Way-Lomina Ave Yellow Standard X X X X X
21 215th St-Rosstord Ave Yellow Standard X X X X X ReplaceSl-1(mod) and "School Xing" sign al crowwalk with FYG SW24-2(CA) signs.Il should be noied that there is no ADA ramp on the southside of 215th Street at Rossford Avenue. 23 Haston PI-214th St Yellow Standard X X X X X Replace S1-1(mod) and "School Xing" sign al crowwalk with FYG SW24-2(CA) signs. It should be noted that there is no ADA ramp on the westside of Haston Place at 214th Street. There is also a fire hydrant on the westside which may impact the installation of an ADA ramp.
22 Fairway Dr-Country Club Dr Yellow Standard X X X X X Replace Sl-1(mod) and "School Xing" sign at crowwalk with FYG SW24-2(CA) signs.
26 Micheison St-Pearoe Ave Yellow Standard X X X X X
27 Roseton Ave-205th St Yellow Stardard X X X X X
28 St Pancratius Pl-Verdura Ave Yellow Standard X X X X X ReplaceSi-1(mod) and "School Xing" sign at crowwalk with FYG SW24-2(CA) signs.

Comprehensive. Innovative. Trusted.

Attachment A
Comprehensive. Innovative. Trusted.
*

COUNCIL AGENDA
December 12, 2023
TO: The Honorable Mayor and Members of the Council
SUBJECT: Annual Comprehensive Financial Report (ACFR) - Year Ended June 30, 2023 and Presentation of the Government Finance Officers Association (GFOA) Award

INTRODUCTION
The Annual Comprehensive Financial Report is a set of City financial statements that complies with Generally Accepted Accounting Principles (GAAP) as established by the Governmental Accounting Standards Board (GASB). It presents a wide variety of information needed for readers to understand the true fiscal picture of a local government’s finances.

The City of Lakewood’s ACFR is compiled by the Finance & Administrative Services Department staff and audited by an independent public accounting firm (The Pun Group LLP, Certified Public Accountants) whose unmodified opinion (the most favorable that can be obtained) is included within the financial section of the report.

In preparation for the City’s annual audit and the development of the ACFR, the City Council Audit Committee convened three times. The meetings, with staff and The Pun Group, took place during the audit and after its completion when the financial statements were available in draft form. The meetings covered a wide array of subjects and materials, including management/auditor roles and responsibilities, audit approach, financial statements, indicators, compliance matters, internal controls, audit results, and upcoming GASB accounting pronouncements.

STATEMENT OF FACT
The City of Lakewood’s Fiscal Year 2022-23 ACFR is composed in the standard format of four sections: Introductory, Financial, Supplemental, and Statistical. • The Introductory Section includes the Transmittal Letter to the City Council from the City Manager and the Director of Finance & Administrative Services, the City’s organizational chart and the GFOA Certificate of Achievement for Excellence in Financial Reporting.
• The Financial Section includes the Independent Auditor’s Report, staffs Management’s Discussion and Analysis that provides a high-level review of the year-over-year changes from the prior year’s ACFR, the Basic Financial Statements of the Governmental and Business Type Activities of the City, and the Fund, Proprietary and Fiduciary Financial Statements, followed by the Notes to the Basic Financial Statements.

3.1 Council Agenda- ACFR June 30, 2023
December 12, 2023

Page 2 ends

• The Supplemental Schedules section includes schedules of the City’s various special revenue funds (grants), and internal service and fiduciary funds. • The Statistical Section contains information regarding the financial trends, revenue and debt capacity, demographic and economic data and operational information of the City.

The City of Lakewood has two major fund groups, Governmental and Proprietary (Enterprise) that fall into two types of activities: governmental and business. The City’s water utility is the only Enterprise Fund and is presented as a business activity in the financial statements along with the internal service funds that serve as cost centers for all funds and functions of the City.

In the Governmental Funds financial statements. Governmental Funds are broken out into Major Funds and Non-Major Governmental Funds. The City of Lakewood has four major funds, the General Fund, American Rescue Plan Act (ARPA) Fund, Successor Housing Agency Fund and Capital Projects Fund; all remaining Governmental Funds are combined and represented under Non-Major Governmental Funds. The combined fund balance of the City’s Governmental Funds (page 31) increased by $20,147,122 over the prior year; this increase was mainly from the increase in the General Fund category.

The Proprietary Fund financial statements primarily represent the City's Water Utility. The Water Utility is treated as an Enterprise Fund and as such has retained earnings rather than a fund balance. Unrestricted retained earnings in the Water Fund increased by $646,208 (page 37). Retained earnings increases are necessary to fund future-year capital improvements.

Projects on the horizon include water main replacements, as well as water treatment and operational upgrades.

GENERAL FUND SUMMARY
The City’s General Fund is the City’s largest fund, over which the City Council has the greatest discretionary authority, and is extremely valuable in the provision of essential services, It is important to note that the presentation of information in the ACFR is different from that in the City’s budget. While a municipal budget is a spending plan for a future time period, an ACFR is a set of financial statements for a prior time period that complies with highly regimented accounting reporting requirements as established by GASB. More specifically, the ACER presents expenditure information without regard to the anticipated use of reserves (i.e., capital improvement projects - CIPs) or departmental expenses. On the revenue side, accounting principles require investments to be adjusted to year-end market value on the City's books each year even though they are held through maturity, The adjustment results in an unrealized “paper” gain or loss that is recorded.

When analyzing the City’s General Fund revenues versus expenditures, there was a “surplus” of $17,043,829 (page 103) at year-end. However, when excluding reserves for Capital Improvement Project (CIP) and Equipment Replacement for carry-over use the next fiscal year, the General Fund realized a $12,945,964 surplus. This is greater than the amount previously Council Agenda- ACFR June 30, 2023
December 12, 2023

Page 3 ends

anticipated when developing the budget, but still in line with the City’s long-term financial plan which projects revenues and expenditures out 20 years and has identified a need for surpluses over the initial years to offset expected increases in expenditures over the last 10 years of the 20- year forecast, Accordingly, the additional current-year funds received are needed and will be programmed to address identified and unanticipated fiscal needs over subsequent years to come.

The following are some of the major reasons for the surplus:

Revenues
Overall, General Fund Revenues, plus the transfer in from other sources, were greater than budgeted by $3,415,420. The largest component of this higher amount was Investment Income ($1,581,054) as interest rates and commensurate earnings rose rapidly over a short period of time. Following is a brief review of the major components of the revenues received by the City as presented on page 103 of the ACFR.

Sales tax revenues exceeded budgeted amounts. Traditional sales tax revenues (also known as Bradley-Bums) were greater than their budgeted amount by $241,871. Locally, “brick and mortar” sales remained strong throughout the year. The top two industry groups (Autos and Restaurant) experienced 15% and 5% increases, respectively over the prior year.

Measure L sales tax revenues (the City’s local transaction sales tax measure) generated $379,473 or 2.7% less than budgeted in its third year. In its first two years the local 0.75% transaction and use tax had been tracking higher (relative to the 1% Bradley-Bums rate that the City captures).

The passage of Measure L allowed for the City to capture those sales tax revenue dollars that otherwise would not have been allocated locally.

Current service charges exceeded budget projections by $744,638. The largest component was Refuse Collection fees, with revenues surpassing its budget estimate by $466,421.

Utility User’s Tax (UUT) revenue was higher than budget estimates by $451,673. This is largely reflective of higher commodity rates in the electricity and natural gas sectors during the year.

Property tax revenues were higher than expected by $349,303 when compared to budgeted estimates. The increase is mostly attributed to the continued increase in property values in addition to the annual countywide two-percent adjustment factor.

Expenditures
The ACFR presents expenditure activities by defined functions that differ from the City’s organizational and CIP structure. Overall, General Fund expenditures, plus the transfer out to other sources, were less than budgeted by $9,246,697. The vast majority of this amount ($6,879,376) represents funds that have been already budgeted to specific CIPs (typically completed over multiple years), but have not been spent. Much of the $6,879,376 above was from the Culture and leisure function, with expenditures $5,858,040 less than anticipated. Since Council Agenda- ACFR June 30, 2023
December 12, 2023

Page 4 ends

many of the City’s budgeted CIPs address park facilities, the year-end “savings” are recognized in the Culture and leisure function within the report.

The remaining portion ($2,367,321) of savings are due to operational activities. There were significant savings ($1,293,265) in labor costs. They are reflective of position vacancies (both full and part-time) throughout the organization as the City experienced the effects of a tight labor market. Organizationally, General Fund contractual costs were lower ($738,094) as staff shifted eligible expenditures away from the General Fund and utilized available grant monies. In some instances, as well, budgeted contingency amounts in various accounts were not fully utilized.

Fund Balance
As mentioned previously, General Fund revenues (including transfers in) exceeded expenditures (including capital projects) by $17,043,829 (without factoring in anticipated use of reserves). In general terms, the City has sound “rainy day” reserves. The fund balance is presented pursuant to GASB 54, which includes four components; the following is a brief review of these components as presented on page 26 of the ACFR.

The Nonspendable component includes prepaid items, inventories and loans to the Successor Agency. This component increased by $307,139 from the prior year. The Successor agency loan receivable is the major element of this component and of the year-over-year change.

The Committed component includes reserves for City obligations, current capital projects and economic uncertainties. This component increased by $1,758,340 from the prior year. It was primarily due to the increase in funds committed to the economic uncertainties reserves.

The Assigned component includes reserves for budgeted but unallocated capital replacement projects, equipment replacement needs, long-term stabilization set-asides as well as major emergencies or catastrophes. Two new categories are included in this year’s report: Legal Fees Contingency and Pension Obligations Paydown. Both provide set-aside funds that help stabilize and improve the City’s long-term fiscal health. Overall, this component increased by $13,419,511 with $4.4 million going into the Measure L long-term reserve.

The Unassigned component, which increased by $1,558,839 compared to the last fiscal year, is available to be allocated as needed.

GFOA Financial Reporting Award - Fiscal Year ending June 30, 2022 Recently, the GFOA awarded the Certificate of Achievement for Excellence in Financial Reporting to the City of Lakewood for the FY 2021-22 ACFR. This is the 41st consecutive year that the City has received this prestigious award. In order to be awarded the Certificate of Achievement, the ACFR must satisfy both generally accepted accounting principles and applicable legal requirements, as well as be easily readable and efficiently organized.

Mr. Ken Pun from The Pun Group will present this award to the Mayor and Council.

Council Agenda- ACFR June 30, 2023
December 12, 2023

Page 5 ends

RECOMMENDATION
Staff recommends the City Council:
• Receive and file the City of Lakewood Annual Comprehensive Financial Report (ACFR) for the Fiscal Year ended June 30, 2023.
• Accept the GFOA Certificate of Achievement for Excellence in Financial Reporting award for the Fiscal Year ended June 30, 2022.

Thaddeus McCormack
City Manager
Jose Gomez
Director of Finance & Administrative Services
Attached: City of Lakewood ACFR for the Fiscal Year ended June 30, 2023

CITY OF LAKEWOOD, CALIFORNIA

ANNUAL COMPREHENSIVE

FINANCIAL REPORT

WITH REPORTS ON AUDIT

BY INDEPENDENT

CERTIFIED PUBLIC ACCOUNTANTS

FOR THE YEAR ENDED
JUNE 30, 2023
Prepared by:

Finance and Administrative Services Department
Jose Gomez
Director of Finance and Administrative Services

City of Lakewood
Annual Comprehensive Financial Report
For the Year Ended June 30, 2023
Table of Contents
Page
INTRODUCTORY SECTION (Unaudited)
Letter of Transmittal.......................................................................................................................................................i Principal Officials...................................................................................................................................................... xiii Organizational Chart...................................................................................................................................................xiv GFOA Certificate of Achievement for Excellence in Financial Reporting .................................................................xv

FINANCIAL SECTION
Independent Auditors’ Report on the Financial Statements...................................................................................1 Management’s Discussion and Analysis
(Required Supplementary Information) (Unaudited) ..............................................................................................5 Basic Financial Statements:

Government-Wide Financial Statements:

Statement of Net Position ...............................................................................................................................18 Statement of Activities ...................................................................................................................................20 Fund Financial Statements:

Governmental Fund Financial Statements:

Balance Sheet...........................................................................................................................................26 Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position .........................................................................29 Statement of Revenues, Expenditures, and
Changes in Fund Balances.................................................................................................................30 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities ......................................................................................................................32 Proprietary Fund Financial Statements:

Statement of Net Position.........................................................................................................................34 Statement of Revenues, Expenses, and Changes in Net Position ............................................................37 Statement of Cash Flows..........................................................................................................................38 Fiduciary Fund Financial Statements:

Statement of Fiduciary Net Position ........................................................................................................43 Statement of Changes in Fiduciary Net Position .....................................................................................44 Notes to the Basic Financial Statements............................................................................................................49 Required Supplementary Information (Unaudited)
Budgetary Comparison Schedule:

General Fund ................................................................................................................................................103 American Rescue Plan Act Special Revenue Fund ......................................................................................104 Notes to Budgetary Comparison Schedule ........................................................................................................105 City of Lakewood
Annual Comprehensive Financial Report
For the Year Ended June 30, 2023
Table of Contents (Continued)
Page
FINANCIAL SECTION (Continued)
Required Supplementary Information (Unaudited) (Continued) Schedule of Changes in Net Pension Liability and Related Ratios California Public Employees’ Retirement System Defined Benefit Plan.....................................................106 Public Agency Retirement System Defined Benefit Plan ............................................................................108 Schedule of Contributions - Pensions:

California Public Employees’ Retirement System Defined Benefit Plan.....................................................110 Public Agency Retirement System Defined Benefit Plan ............................................................................112 Schedule of Changes in Net Other Postemployment Benefits Liability and Related Ratios Other Postemployment Benefits Plan...........................................................................................................114 Schedule of Contributions:

Other Postemployment Benefits Plan...........................................................................................................116 Supplementary Information:

Housing Admin and Program Capital Projects Fund ...................................................................................121 Lakewood Capital Improvements Capital Projects Fund .............................................................................122 Nonmajor Governmental Funds:

Combining Balance Sheet ............................................................................................................................125 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ....................................130 Schedules of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual:

AB 2766 Special Revenue Fund ............................................................................................................135 Beverage Container Recycle Grant Special Revenue Fund ...................................................................136 Community Development Block Grant Special Revenue Fund.............................................................137 JAG Grant Special Revenue Fund .........................................................................................................138 LA County Measure M Special Revenue Fund .....................................................................................139 Measure R Special Revenue Fund .........................................................................................................140 Measure W Special Revenue Fund ........................................................................................................141 Park Dedication Special Revenue Fund .................................................................................................142 Prop A Recreation Special Revenue Fund .............................................................................................143 Prop A Transit Special Revenue Fund...................................................................................................144 Prop C Transportation Special Revenue Fund .......................................................................................145 Road Maintenance and Rehab Account Special Revenue Fund ............................................................146 Sewer Reconstruction Special Revenue Funds......................................................................................147 State COPS Grants Special Revenue Fund ............................................................................................148 State Gasoline Tax Special Revenue Fund ............................................................................................149 TDA Article Grant Special Revenue Fund ............................................................................................150 Used Oil Grant Special Revenue Fund ..................................................................................................151 LEAP Grant Special Revenue Fund.......................................................................................................152 SB2 Housing Grant Special Revenue Fund ...........................................................................................153 CA Natural Resources Agency Grant Special Revenue Fund ...............................................................154 Open Space Special Revenue Fund........................................................................................................155 Internal Service Funds:

Combining Statement of Net Position ..........................................................................................................159 Combining Statement of Revenue, Expenses, and Changes in Net Position ...............................................160 Combining Statement of Cash Flows...........................................................................................................161 City of Lakewood
Annual Comprehensive Financial Report
For the Year Ended June 30, 2023
Table of Contents (Continued)
Page
STATISTICAL SECTION (Unaudited)
Description of Statistical Section Contents ...............................................................................................................165 Financial Trends:

Net Position by Component – Last Ten Fiscal Years .........................................................................................166 Changes in Net Position – Expenses and Program Revenues – Last Ten Fiscal Years......................................168 Fund Balances of Governmental Funds – Last Ten Fiscal Years .......................................................................172 Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years ....................................................174 Revenue Capacity:

Major Tax Revenue By Sources – Last Ten Fiscal Years...................................................................................177 Taxables Sales by Category – Last Ten Calendar Years ....................................................................................178 City Sales Tax Rates - Last Ten Fiscal Years.....................................................................................................180 Assessed Value and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years..............................181 Direct and Overlapping Property Tax Rates – Last Ten Fiscal Years ................................................................182 Principal Property Taxpayers – Current Year and Nine Years Ago ...................................................................183 Property Tax Levies and Collections – Last Ten Fiscal Years ...........................................................................185 Debt Capacity:

Ratios of Outstanding Debt by Type – Last Ten Fiscal Years............................................................................186 Direct and Overlapping Debt ..............................................................................................................................189 Legal Debt Margin Information – Last Ten Fiscal Years...................................................................................190 Pledged-Revenue Coverage – Last Ten Fiscal Years .........................................................................................192 Demographic and Economic Information:

Demographic and Economic Statistics – Last Ten Calendar Years....................................................................194 Operating Information:

Full-Time City Employees by Function – Last Ten Fiscal Years.......................................................................195 Operating Indicators by Function – Last Ten Fiscal Years.................................................................................196 Capital Assets Statistics by Function – Last Ten Fiscal Years ...........................................................................198

i
Todd Rogers Steve Croft
Vice Mayor Council Member
Cassandra Chase Jeff Wood
Council Member Council Member
Ariel Pe
Mayor
December 12, 2023
The Honorable Mayor and City Council
City of Lakewood
Lakewood, California

TRANSMITTAL LETTER
We are pleased to submit for your information and consideration the Annual Comprehensive Financial Report of the City of Lakewood. State law requires that all general-purpose local governments publish within six months of the close of the fiscal year a complete set of financial statements presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted government auditing standards by a firm of licensed certified public accountants.

Pursuant to that requirement, we hereby issue the annual comprehensive financial report of the City of Lakewood for the fiscal year ended June 30, 2023.

This report consists of management’s representations concerning the finances of the City of Lakewood.

Consequently, management assumes full responsibility for the completeness and reliability of all information presented in this report. To provide a reasonable basis for making these representations, management of the City of Lakewood has established a comprehensive internal control framework that is designed both to protect the government’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City of Lakewood’s financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the City of Lakewood’s comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that to the best of our knowledge and belief, this financial report is complete and reliable in all material respects.

The City of Lakewood’s financial statements have been audited by The Pun Group, LLP, a firm of licensed certified public accountants. The goal of the independent audit is to provide reasonable assurance that the financial statements of the City of Lakewood for the fiscal year ended June 30, 2023 are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statements presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering unmodified opinions that the City of Lakewood’s financial statements for the fiscal year ended June 30, 2023 are fairly presented in conformity with GAAP. The independent auditor’s report is presented as the first component of the financial section of this report. ii
GAAP requires that management provide a narrative introduction, overview and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). The letter of transmittal is designed to complement MD&A and should be read in conjunction with it. The City of Lakewood’s MD&A can be found immediately following the report of the independent auditors.

PROFILE OF THE GOVERNMENT
The City of Lakewood, incorporated in 1954, islocated in Southern Los Angeles County, 20 miles south of the City of Los Angeles. Lakewood enjoys the benefits of the diversified economy of Southern California. The City is primarily a bedroom community providing housing for the Southern California region. The City of Lakewood occupies a land area of 9.5 square miles and serves a population of 82,713 as of the 2020 census.

The City of Lakewood has operated under the council-manager form of government since its incorporation. The City is a “contract city,” having been the first in the country to adopt this form of government. John Stanford Todd’s contributions to Lakewood and city government are now honored by two John Sanford Todd Memorial Highway signs located near the northern and southern borders of Lakewood along the 605 freeway. Policy-making and legislative authority are vested in a governing council consisting of five members. The governing council is responsible for, among other things, passing ordinances, adopting the budget, appointing committees and hiring both the City Manager and City Attorney. The City Manager is responsible for carrying out the policies and ordinances of the governing council, for overseeing the day-to-day operations of the government, and for appointing the heads of the various departments. The Council is elected on a non-partisan basis. Council members serve four-year overlapping terms. The mayor is selected by the council from among its members and generally serves in that capacity for a one-year term.

The City of Lakewood provides a full range of services, including police protection, solid waste collection, construction and maintenance of highways, streets and infrastructure, planning and zoning activities, utilities (water), recreational activities, cultural events, housing and general administrative services. As mentioned above, the City of Lakewood is a “contract” city, meaning that some of these services are provided by contract with other agencies (both public and private) and some services are delivered by the City’s own employees. Library services, fire protection services, and sewer services are provided by special districts of the County of Los Angeles. The City has excluded the County of Los Angeles, as well as the State of California and various school districts, because they do not meet the established criteria for inclusion in the report.

The City budget serves as the foundation for the City of Lakewood’s financial planning and control. All departments of the City are required to submit requests for appropriation to the City Manager for inclusion in the budget that commences July 1st. The City Manager uses these requests, along with a query of City Council priorities, as the starting point for developing a proposed budget. The City Manager then presents a proposed budget to the Council for review prior to June 30. The Council is required to hold a public hearing on the proposed budget and to adopt a final budget by no later than June 30, the close of the City’s fiscal year. The appropriated budget is prepared by fund, function (e.g., solid waste collection), and department (e.g., public works). The City Manager may authorize transfers of appropriations within and between departments within funds. Budget-to-actual comparisons are provided in this report for each individual governmental fund for which an appropriated annual budget has been adopted. For the General Fund, this comparison is presented under the required supplementary information in the financial section of this report. For governmental funds, other than the General Fund, with appropriated annual budgets, this comparison is presented in the supplementary schedules section of this report.
iii
ASSESSING THE CITY’S ECONOMIC CONDITION AND OUTLOOK
The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City of Lakewood operates and serves.

The City of Lakewood is
primarily a residential
community with only 6% of the
City zoned for commercial use.

The City is home to one of the
largest mallsin the United States
with about 2.1 million square
feet of retail space, which is
strategically located in the center
of the City. By the end of the
1990’s, Lakewood was
essentially “built out,” leaving
very little of the 9.5 square miles of the City available for new development.

In the aftermath of the COVID-19 pandemic, local economic conditions and climate were favorable as restrictions were minimized. For the City of Lakewood, retail sales is the economic indicator that best heralds the City’s financial status. Sales tax revenues account for about 42% of all General Fund revenues. There are over 4,000 businesses (including home occupations) located in Lakewood that helped generate over $18 million in “Bradley-Burns” sales tax revenue for the City in Fiscal Year 2022-

23. This amount was supplemented by approximately $13.6 million in sales tax revenue generated by Measure L (the local 0.75% transaction and use tax). More on this below. The economic base of Lakewood is largely retail with the City’s “top twenty-five” retail businesses as a group producing 59% of the City’s “Bradley-Burns” sales tax revenues. Undeniably, Lakewood has long benefited from a popular regional shopping center and several smaller commercial plazas. In recent years, the City had been experiencing the slowing of sales tax revenue growth. Most of this was stemming from the continued migration of consumers away from traditional brick-and-mortar to online shopping.

Restrictions from the COVID-19 pandemic greatly exacerbated this phenomenon starting in March 2020 as many traditional retailers were forced to close their doors and shoppers were reluctant to leave their homes.

Over the last decade, state and county pools have provided a greater share of sales tax revenues to the City as online sales have grown and federal tax laws have evolved. This has somewhat offset the loss of brick-and-mortar salestax revenue to online shopping. Historically, “Bradley-Burns” sales tax collected from online sales had been disbursed to citiesthrough state and county pools based on each city’s percent of total brick-and-mortar sales. For Lakewood, this will diminish over time as the percentage of online sales grows in comparison to the City’s shrinking brick-and-mortar sales activity. The City’s outlook in the collection of sales tax revenue, however, greatly changed in the spring of 2020. iv
In March 2020, Lakewood voters passed Measure L allowing for a ¾ cent local sales tax measure which was expected to provide over $10 million in additional funds per year that benefit the Lakewood community. The tax applies to both brick-and-mortar and online sales transactions. Its importance cannot be overstated as the new revenue allows the City to continue providing and maintaining the essential services that help define the quality of life that residents deserve and expect. Its passage was also timely in that it came at the onset of the then unforeseen economic collapse from the COVID-19 pandemic, thus offering a needed buffer for the diminished revenue trends that were anticipated ahead.

More importantly, the impact from Measure L will be felt for years to come as it providesthe foundation for long-term economic stability, funding for needed community services and programs, as well as helping address the City’s aging facilities and infrastructure.

Despite a somewhat turbulent
environment, economic development in
the City added a number of retailersin the
past year. It allowed for expanded
shopping and dining opportunities, as
well as adding jobs from over 100 new
businesses in Lakewood including home
occupation businesses. This built on the
more than 5,000 jobs that new businesses
brought to Lakewood over the past
decade. Among the new businesses
opening or expanding during the year
were WalMart Fuel Station, Wave
Imagining/Breastlink, and Sola Salons.

The City is a “low property tax city,” which means the City assessed a small municipal property tax prior to 1978-79 that has been folded into the tax base under Proposition 13. Today, the City relies on a small 5.84% share of the county collections – the fourth lowest in the County.

The County Assessor increased property
tax assessments by 2%, the maximum
allowed by law.

During the last recession, the County
Assessor lowered property tax assessments
utilizing the 1978 Proposition 8 reduction
requirement where the lesser of the adjusted
base year value or market value is used for
taxation.

Not surprisingly, the number of Prop 8
reductions has steadily decreased in recent
years as property values have risen considerably. More so, about $23 million in Prop 8 values was restored from prior year value reductions throughout the City. Overall, the top two factors (transfer of ownership and a CPI increase of $208 million), along with the recapture of Prop 8 valuations largely accounted for the overall taxable value increase of more than $672 million. As in past years, the main driver of the increase was residential properties at $600 million followed by commercial properties at approximately $66 million.
v
The total assessed value of real property in the City was $11.7 billion for Fiscal Year 2022-23, a 6.1% increase from the previous year. The growth was only slightly less than the County’s rate of 6.97%.

With mortgage interest rates dropping to record lows during the COVID-19 pandemic, real estate values soared with the pandemic having no
detrimental impact on assessed values. The
housing market has changed more recently.

In calendar year 2023, the sales price for a
median single family Lakewood home has
remained flat. At $810,000, it is about the
same as it was in 2022. A major reason for
this leveling is the significant rise in
mortgage interest rates that have brought a
sharp decline in the number of homes sold
on a nationwide basis. It is anticipated that
the fewest homes will be sold in 2023, since
2007.

In Fiscal Year 2012-13, the City began to receive residual property tax from the dissolution of the Lakewood Redevelopment Agency (LRA). In that year, all property tax increment held by the LRA was shifted to the County and disbursed to local taxing agencies - the City’s share of this disbursement was $404,967. The significantly greater residual disbursement ($436,749) received in Fiscal Year 2015-16 was primarily the City’s share of the $9.4 million payment made that year to the County by the Successor Agency of the former Lakewood Redevelopment Agency. Annual residual property tax is expected to be approximately $250,000 in Fiscal Year 2023-24 due to former LRA bonds being fully paid.

In Fiscal Year 2007-08 the City joined in a collective action against Los Angeles County regarding property tax administrative fees. The case was settled in Fiscal Year 2012-13 resulting in a refund to the City of $804,544 in excess property tax fees. The settlement also resulted in an on-going annual reduction of the property tax administrative fee of about $150,000.

Property tax revenue in Fiscal Year 2022-23
increased by 7.7% over the prior year,
exceeding budget expectations by 5.3%, and is
expected to reflect a modest increase in Fiscal
Year 2023-24. Overall, property tax revenue
accounts for about 9% of General Fund
revenues. Since the 2004 passage of Prop 1A,
changes in property tax valuation have a
greater impact on revenue. Vehicle license fee
revenue growth is tied to property tax growth.

Property tax in-lieu of vehicle license fees accounts for an additional 15% of General Fund revenues.

The COVID-19 pandemic did not impact either of the above revenues, with little long-term effect.

During Fiscal Year 2022-23, over 4,900 construction and remodeling permits were issued, which is the fourth year in row of increased permits issued and the largest total since Fiscal Year 2005-06. *Budget *Budget
vi
City revenues are also affected by changes in
the commodity markets. The City’s assessed
utility user’s tax (UUT) revenue totaled
almost $3.9 million and represents 5.1% of
General Fund revenues. The 3% tax is
assessed on communications, electricity,
natural gas and water use. Fiscal Year 2022-
23 revenues increased over $490,000 across
all four utility areas when compared to the
prior year. The majority of the UUT increase
was from electricity and gas utilities. The
increased commodity prices during the year,
especially natural gas, were responsible. The telecommunications UUT revenue is less than one-third of its 2010 peak year and saw an 11% decrease from the prior year to $431,893 in Fiscal Year 2022-23.

Significant changes in technology have shifted core telecommunications usage outside of those subject to the City’s UUT.

In most years, Lakewood’s employment
rate depends largely on the regional job
market. The COVID-19 pandemic,
however, was largely responsible for a
tremendous swing in the unemployment
rate unlike any other in decades. The
sweeping effect of the COVID-19
pandemic initiated shut-downs in March
2020 that resulted in steep job losses. As
the economy recovered from the pandemic,
a decline in the size of the workforce drove
the unemployment rate downward
dramatically to 4.3% in 2022. Subsequently, it has risen to a rate of 4.8% as of October 2023.

Major employers located within city limits are Long Beach Unified School District, County of Los Angeles, Lakewood Regional Medical Center, and various retail, automotive and home improvement businesses, as well as the City itself.

The April to April Consumer Price Index
(CPI) for the Los Angeles, Riverside and
Orange County region, which is the basis
for many of the City’s contract increases,
was 3.8% in 2023. After reaching 40-year
highslast year, the CPI is approaching more
historically average levels. Partly
responsible for this decline are higher
interest rates. The U.S. Federal Reserve,
tasked with setting interest rates, has
increased them sharply in an attempt to lower the CPI to a more reasonable level. As it has declined, there are some indications that the Reserve may pause and not continue raising rates in the near future. *Budget
vii
Economic Outlook
Beacon Economics provides market insights and forecasts for communities across the western United States. In their recent analysis Beacon states, “Despite adding over 440,000 jobs since the pandemic, California's job growth is largely a result of its size. The state's labor force is still below pre-pandemic levels, with about 168,000 fewer workers. California is also facing a housing crisis, with a decline in population but an increase in new households. The number of job openings in the state exceeds the number of unemployed persons. California's housing shortage and high interest rates have limited home sales activity, but there is still a shortage of housing supply. Progress in easing the housing crisis will depend on a balance between demographic and economic factors.” The HdL Companies, the City’s sales tax revenue consultant also provided a restrained outlook stating, “Steady household spending, despite historically low unemployment, has shielded the economy from recession, a unique situation even as in ation exceeded Federal Reserve targets and interest rates on loans and credit cards rose. In California, sales tax performance for Fiscal Year 2022-23 grew by 2.1%, but it lags far behind the double-digit growth seen during the pandemic recovery. Looking ahead, households face tight budgets, and various industries grapple with challenges like labor costs, inventory issues, and competition. Spending generating sales taxes is expected to dip slightly in Fiscal Year 2023- 24, with limited expansion anticipated in the following year.”

LONG-TERM FINANCIAL PLANNING
Long-term financial planning involves the management of the City’s programs and assets. Programs include the services the City provides through its employees and contracts. Assets include cash and investments, as well asthe City’s entire infrastructure ofstreets, street lighting, signals, medians,signage, parks, recreation facilities, water mains, trees, sidewalks and bus stops, etc. Long-term debt, pension and post-employment benefits, and the depreciation and deterioration of the above named tangible assets, are also included in the long-term financial plan. The City’s policies provide parameters that reflect the City’s management and fiscal philosophy.

The City’s financial and operating budget policies serve as the guiding principles for the City’s financial management and annual budgetary process. The financial policy is written with the objective to maintain or improve an entity’s financial position, financial management and credit rating. The operating budget policy, along with the City’s purchasing policy, is written with the objective to promote good stewardship in the management of public funds and resources.

The City’s cash and investment policy is written with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints, liquidity needs and cash flow characteristics of the portfolio. Return on investment is of secondary importance compared to safety and liquidity objectives.

The City’s governmental fund balance policy is written with the objective to retain the proper levels of reserves for economic uncertainty (20% of operational costs), unforeseen capital expenditures and repairs, emergency response services, and pension obligations.

The City’s capital financing and debt management policy is written with the objective to set guidelines as to the financing of capital expenditures and long-term capital planning. viii
The City’s capital improvement program and replacement of assets policy provides guidance as to the objectives capital improvements shall meet. Capital improvement projects typically involve large outlays and cover multiple years. Although capital improvements are considered apart from the operating budget of the City, the operating budget includes set-aside funding for capital projects. In addition, Lakewood staff is encouraged and readily takes the steps necessary to acquire new, and retain current funding sources. New funding possibilities include various one-time competitive grants and on-going block grants. These grants fund public works projects, park and recreation facilities, public safety, transportation and housing programs. Following are examples of recent project and programmatic accomplishments:

Street, Stormwater and Traffic Signal Improvements:

Trimmed approximately 7,780 trees, removed over 168 trees determined to be in poor condition, and replanted 174 trees throughout the City.

Removed and Replaced 2.5 miles of curb & gutter and 5.4 miles of sidewalk, enabling better movement of pedestrians and run-off water throughout the City.

Resurfaced approximately 9 miles of street using rubberized asphalt.

Reconstructed 15 ADA curb ramps to bring them up to current standards.

Parks and Community Facilities Projects and Activities:

Pool equipment improvements completed at Mayfair pool with the installation of new rubber filter seals.

Improvements were completed at Mayfair Swim Pavilion, including the replacement of the water heater and the replacement of the carpet.

Construction was completed at Rynerson Park, with the installation of new picnic shelters and ADA-accessible parking improvements.

Construction was completed at San Martin Park, with improvements including new picnic shelters, a new tot lot playground, and ADA-accessible parking improvements.

Parks, Sports, Human Services and Special Events
The aquatics program provided 2,865 swim lessons and aquatic fitness classes for 709 individuals. A total of 17,167 people attended recreation swim over the three-plus month swim season.

Lakewood Youth Sports (LYS) continued to resurge following the pandemic. The traditional programmed sports include baseball, softball and t-ball, flag football, volleytennis, and basketball. This number increased from the prior year by 198 participants. An estimated 400+ volunteer coaches assisted with the program this year.

The Lakewood Youth Hall of Fame celebrated its 41st year in 2023. Fifty-one athletes and 13 league champion teams from local high schools were honored in front of over 300 attendees for their athletic and scholastic achievements.

Staff processed 1,454 facility reservations, including rooms and fields, totaling over $236,000 in revenue.

Contract class offerings and participation demonstrated a steady increase during the year as 1,394 class offerings were attended by 8,166 participants. This marks a 24.5% increase in participation from the prior year.

The 25th annual LAMP/LCEA Special Olympics Fundraiser was held on Friday, September 23, 2022 and it was a very successful event returning from a two-year, in-person hiatus due to the pandemic. Staff, family and community sponsors raised $7,000 for the Lakewood Special Olympics athletes.
ix
The Project Shepherd program continued to serve residents in need. Items were provided throughout the year, including backpacks with school supplies to 434 children in August, 412 families were provided Holiday assistance (grocery store gift cards, boxes of food and bags of toiletry items) for both Thanksgiving and December holidays. Utility assistance helped 77 families and 261 families were provided assistance with food and gift cards during the yearround program.

Public Safety Activities:

Sustained implementation of Citywide Neighborhood Safety Enhancement Plan, including:
o Dedicated Sheriff’s Deputy crime suppression unit
o Utilization of contracted private security to perform targeted overnight patrols o Purchase of the latest license plate reader cameras to be deployed citywide o Purchase of two radar trailers with variable message signs o Implementation of home security camera and catalytic converter anti-theft device rebate programs, and catalytic converter engraving events.

Continued events organized for residents to meet and interact with members of law enforcement at City events and programs. Events included Coffee with a Deputy, inaugural Doggies & Deputies and Kids n Cops Bowling Night, the return of the Connect with Public Safety series with community meeting and tours of Lakewood Sheriff’s Station.

Continued community outreach and education through the expanded use of social media and other public educations platforms.

Hosted American Red Cross’ “Sound the Alarm” for the first time in Lakewood, reaching over 300 residents to provide and install free smoke detectors in homes throughout the city.

Reinstated the School Safety Program as the Healthy and Safe Initiative since COVID. Public Safety staff partnered with American Red Cross to deliver educational topics on emergency preparedness and personal safety to Lakewood elementary school students.

Implemented the Community Prosecutor Program, a contract service through the Office of the District Attorney for a dedicated Deputy District Attorney focused on abating nuisance and criminal activity to improve quality of life issues in neighborhoods.

Addition of a Homeless Service Liaison to address homeless issues through coordinated efforts with various city departments, law enforcement, regional outreach service providers and other partner agencies. The program is funded using Measure H money made available through the Gateway cities Council of Government.

Water System Improvements:

Completed Phase II construction of the Well 13A arsenic treatment system. The project will allow Well 13A to resume production upon receiving approval from the State's Division of Drinking Water.

Completed construction of Plant 4 Tank 1 and 2 coating repairs and installation of a cathodic protection for corrosion control. The project will extend the service life of two existing steel storage tanks.

Completed construction of the Long Beach 2nd Interconnection which will allow the City to increase water sales to the City of Long Beach.

Executed two long-term water rights lease agreements with the City of Compton and City of Whittier for next three fiscal years to maximize the City’s unused water rights assets.

Completed replacement of Plant 4-Booster Pumps 4 & 5 to maintain pumping capability and enhance system reliability.

Completed rehabilitation of Well 18 with replacement of pump and motor to restore pumping capacity and extend the useful life of the well.
x
Commercial Development:

Walmart Fuel completed the construction of a 1.9 acre gasoline station, with six fuel pumps and a canopy.

Farmers and Merchants Bank completed the installation of a parking lot shade structure with solar panels.

The City celebrated the grand opening of varioussmall businesses, including: ContinuEM Urgent Care, Mattress Firm, Carwood Carwash, Shake Menu, Wave Imaging, and a Tesla supercharging station.

Residential Programs and Development:

The City maintained the Home Improvement Loans and Fix Up / Paint Up Programs. The Home Improvement Loan Program provides up to $18,000 to eligible homeowners for home improvements. The Fix Up / Paint Up Program assists eligible low-income homeowners by providing grants of approximately $3,000 for exterior repairs. Many of the participants are elderly and disabled residents who cannot cope with property upkeep. In the past year a total of ten loans and six grants were issued.

A total of 90 new Accessory Dwelling Unit (ADU) permits were issued. ADUs are small units built within an existing residential property, and can either be new construction or a conversion of an existing space, such as a garage.

Public Communication Projects:

The City continued to provide legendary customer service by receiving and processing over 10,000 service requests through multiple contact methods, including in-person, phone, and mobile apps.

The City Council adopted the city’s Vision, Mission and Values Statements, which serve as a guidepost in the city’s decision making process.

The City Council approved the formation of the Lakewood Leadership Academy, which is designed to educate and develop effective community leaders to take an active role towards building a stronger Lakewood. The initial class of 45 residents completed the 8-month program, and emerged as wanting to be more involved in the community because of the program.

The City Council approved an agreement with Care Solace to provide mental health care coordination for the Lakewood community.

Secured federal funding through the Congressional Project Funding process for Weingart Senior Center and Palms Park Community Center.

Secured state funding for the Weingart Senior Center and for capital projects at the City’s discretion.

Long-term Debt:

Long-term debt is limited to the City’s Governmental Activities and the Water Enterprise Fund. More detailed information regarding the City’s long-term debt is presented in the notes to the basic financial statements.

The Successor Agency of the former Redevelopment Agency holds debt in the form of City loans.

Senate Bill 107 allows for the payment of all outstanding loans made by the City to the Agency as recalculated using a four percent rate over the life of the loan. Loan payments to the City can resume once the housing deferrals have been fully paid; 20 % of the loan payments are required to fund housing operations and capital.
xi
Pension and Other Post Employment Benefit Liabilities:

The City provides three retirement benefit programs. The City takes measures to ensure that the City’s retirement benefit plans are financially secure and well-funded. These programs are as follows:

California Public Employee Retirement System (CalPERS) is a 2% at 55 pension plan for “classic” CalPERS members, and 2% at 62 pension plan for new members as defined by the Public Employees Pension Reform Act (PEPRA), who are employees that have never been a member of CalPERS or who had a break in service of six months or greater. CalPERS currently utilizes a 6.9% discount rate and is 76.06% funded as of June 30, 2022, per the CalPERS GASB 68 Accounting Valuation Report and the market value of assets.

PARS Retirement Enhancement Plan is a 0.5% at 60 pension plan. The PARS Plan was established in 2004 and is only available to full-time/permanent employees. The PARS Plan was closed to new employees on January 1, 2013 as restricted by the Public Employees Pension Reform Act (PEPRA).

This Plan utilizes a 5.5% discount rate and is 84.8% funded as of June 30, 2023, based on the assumptions of the GASB 67 and 68 Disclosure Document and the market value of assets.

The City offers other post-employment benefits (OPEB), a Career Employee Medical Retirement Benefit Plan, to eligible retirees. The plan is constructed to keep costs in check by limiting eligibility and length of benefit. The City provides limited supplemental payment for post-retirement healthcare benefits for full-time/permanent employees who have completed 20 years of service and have reached the age of 55, or who have completed 15 years and reached the age of 60, and who are retiring under CalPERS. The benefit is also limited by the retiree’s years of service. This Plan utilizes a 6% discount rate and is 93% funded as of June 30, 2023 based on the assumptions of the latest actuarial and the market value of assets.

More detailed information regarding the City’s pensions and other post-employment benefits is presented in the notes to the basic financial statements.

FINANCIAL MANAGEMENT POLICIES AND PRACTICES
GASB Statement No. 91. In May 2019, GASB issued Statement No. 91, Conduit Debt Obligations (GASB Statement No. 91), to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. This statement achieves those objectives by clarifying the existing definition of a conduit debt obligation; establishing that a conduit debt obligation is not a liability of the issuer; establishing standards for accounting and financial reporting of additional commitments and voluntary commitments extended by issuers and arrangements associated with conduit debt obligations; and improving required note disclosures. Implementation of this Statement did not have a significant effect on the City’s financial statements for the fiscal year ended June 30, 2023.

GASB Statement No. 94. In March 2020, GASB issued Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements (GASB Statement No. 94) to improve financial reporting by addressing issues related to public-private and public-public partnership arrangements (PPPs). This Statement also provides guidance for accounting and financial reporting for availability payment arrangements (APAs). Implementation of this Statement did not have a significant effect on the City’s financial statements for the fiscal year ended June 30, 2023.
xii
GASB Statement No. 96. In May 2020, GASB issued Statement No. 96, Subscription-Based Information Technology Arrangements (GASB Statement No. 96), to provide guidance on the accounting and financial reporting for subscription based information technology arrangements (SBITAs) for government end users (governments). This Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset- -an intangible asset and a corresponding subscription liability: (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. Implementation of this Statement had a significant effect on the City’s financial statements for the fiscal year ended June 30, 2023.

GASB Statement No. 99. In April 2022, the GASB issued Statement No. 99, Omnibus 2022. The objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing (1) practice issues that have been identified during implementation and application of certain GASB Statements and (2) accounting and financial reporting for financial guarantees. The Statement is effective immediately for the requirements related to extension of the use of LIBOR, accounting for SNAP distributions, disclosures of nonmonetary transactions, pledges of future revenues by pledging governments, clarification of certain provisions in Statement 34, as amended, and terminology updates related to Statement 53 and Statement 63. The Statement is effective for fiscal year years beginning after June 15, 2022 for requirements related to leases, PPPs, and SBITAS. Implementation of this Statement did not have a significant effect on the City’s financial statements for the fiscal year ended June 30, 2023.

AWARDS AND ACKNOWLEDGEMENTS
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Lakewood for its Annual Comprehensive Financial Report (formerly known as the Comprehensive Annual Financial Report) for the fiscal year ended June 30, 2022. This wasthe 41st consecutive year that Lakewood has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized Annual Comprehensive Financial Report. This report must satisfy both generally accepted accounting principles and applicable legal requirements.

A Certificate of Achievement is valid for a period of one year only. We believe that our current Annual Comprehensive Financial Report continues to meet the Certificate of Achievement Program’s requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate.

Preparation of this report was accomplished by the combined efforts of the Finance and Administrative Services Department staff. We appreciate the high level of professionalism and dedication that these staff members bring to the City. The contributions made by Anne Rodriguez, Assistant Director of Finance & Administrative Services and Claire Pierson, Senior Accountant deserve special recognition.

We also thank the members of the City Council, especially the Audit Committee, for their interest and support in the development of this report.

Respectfully submitted,
Thaddeus McCormack Jose Gomez
City Manager Director of Finance & Admin. Services

CITY OF LAKEWOOD PRINCIPAL OFFICERS

CITY COUNCIL

ARIEL PE
Mayor

TODD ROGERS CASSANDRA CHASE
Vice Mayor Council Member

STEVE CROFT
Council Member

JEFF WOOD
Council Member

ADMINISTRATION AND DEPARTMENT DIRECTORS
THADDEUS McCORMACK
City Manager
IVY M. TSAI
City Attorney

PAOLO BELTRAN
Deputy City Manager

ABEL AVALOS
Director of Community Development

VALARIE FROST
Director of Recreation and Community Services

JOSE GOMEZ
Director of Finance and Administrative Services

BILL GRADY
Director of Communications

DEREK NGUYEN
Director of Water Resources

KELLI PICKLER
Director of Public Works

JOSHUA YORDT
Director of Public Safety
xiii
xi
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Lakewood
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2022
Executive Director/CEO
x
xvi
INDEPENDENT AUDITORS’ REPORT
To the Honorable Mayor and the Members of the City Council of the City of Lakewood
Lakewood, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Lakewood, California (the “City), as of and for the year ended June 30, 2023, and the related notes to the basic financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2023, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Emphasis of Matter
Change in Accounting Principle - Implementation of GASB 96 As discussed in Note 2 to the basic financial statements, the City adopted new accounting guidance, Governmental Accounting Standards Board (“GASB”) Statement No. 96, Subscription-based Information Technology Arrangements. Our opinion is not modified with respect to this matter.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

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

To the Honorable Mayor and the Members of the City Council of the City of Lakewood
Lakewood, California

Page 2 ends

2 Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinions.

Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards, we:

Exercise professional judgment and maintain professional skepticism throughout the audit.

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.

Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

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

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis, the Budgetary Comparison Schedules – General Fund and American Rescue Plan Act Special Revenue Fund, the Budgetary Information, the Schedules of Changes in Net Pension Liability and Related Ratios, the Schedules of Contributions – Pensions, the Schedule of Changes in Net Other Postemployment Benefits Liability and Related Ratios, and the Schedule of Contributions – Other Postemployment Benefits as listed in the table of contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the Required Supplementary Information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

To the Honorable Mayor and the Members of the City Council of the City of Lakewood
Lakewood, California

Page 3 ends

3 Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying combining and individual nonmajor fund financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the annual report. The other information comprises the Introductory and Statistical sections but does not include the basic financial statements and our auditors’ report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

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

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 6, 2023, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City’s internal control over financial reporting and compliance.

Santa Ana, California
December 6, 2023
4 City of Lakewood
Management‘s Discussion and Analysis (Unaudited)
For The Year Ended June 30, 2023
5 As management of the City of Lakewood, California, (City) we offer readers of the City of Lakewood’s financial statements, this narrative overview and analysis of the financial activities of the City for fiscal year ended June 30, 2023. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found in the introductory section of this report, and with the City’s financial statements, which follow this discussion.

Financial Highlights
Net Position: The assets and deferred outflows of resources of the City (which include the value of streets, sidewalks and other infrastructure) exceeded liabilities and deferred inflows of resources at June 30, 2023, by $260,756,974.

Of this amount, $70,586,554 may be used to meet the government’s ongoing obligations to citizens and creditors, but is subject to designation for specific City programs.

Changes in Net Position: The government’s total net position increased by $24,487,160. The governmental activities increased by $23,898,818 and business-type activities by $588,342 at the end of fiscal year June 30, 2023.

Long Term Debt: The City of Lakewood’s total debt decreased by $1,151,876. This was attributable to normal scheduled debt service payments.

Governmental Funds: As ofJune 30, 2023, the City’s governmental funds reported a combined ending fund balance of $121,867,727. Approximately 59.2 percent of the ending fund balance, $72,195,177, is available for spending at the government’s discretion as either a committed, assigned, and unassigned fund balance within the guidelines of the funding sources.

General Fund: At June 30, 2023, committed, assigned and unassigned fund balance of the general fund was $70,543,413. All but $4,094,060 of these funds are committed or assigned for specific purposes in accordance with City policies and budgetary guidelines.

Government-wide financial statements.

The government-wide financial statements are designed to provide readers with a broad overview of the City overall financial status in a manner similar to a private sector business.

The statement of net position presents information on all of the City’s assets, deferred outflows of resources, liabilities, and deferred inflow of resources with the difference between the four reported as net positions. Over time, increase or decreases in net position may serve as a useful indicator of whether the financial position of the City of Lakewood is improving or deteriorating.

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

City of Lakewood
Management‘s Discussion and Analysis (Unaudited) (Continued) For The Year Ended June 30, 2023
6 Both of the government-wide financial statements distinguish functions of the City of Lakewood that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City of Lakewood include general government, public safety, transportation, community development, health and sanitation, and culture and leisure.

The government-wide financial statements include the City of Lakewood and a component unit the Lakewood Public Financing Authority. Financial information for this component unit is reported within the funds of the City. The Water Utility, although also legally separate, functions for all practical purposes as a department of the City of Lakewood, and therefore has been included as an integral part of the government.

The government-wide financial statements can be found on pages 17 - 21 of this report.

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

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

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental fund and governmental activities.

The City of Lakewood maintains twenty four governmental funds comprised of four major and twenty one nonmajor funds. Information is presented separately in the governmental fund balance sheet and the governmental funds statement of revenues, expenditures, and changes in fund balances. Data from the twenty one nonmajor governmental funds is combined into a single, aggregated presentation. Individual fund data for each of these other governmental funds is provided in the form of combining statements in the supplementary information.

The City of Lakewood adopts a biennial appropriated budget for its general fund. A budgetary comparison schedule has been provided for the general fund to demonstrate compliance with this budget in the required supplementary information. Budgetary comparisons for other funds are provided in the supplementary information of this report.

The governmental fund financial statements can be found on pages 25 - 32 of this report.

City of Lakewood
Management‘s Discussion and Analysis (Unaudited) (Continued) For The Year Ended June 30, 2023
7 Proprietary funds. The City of Lakewood maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City of Lakewood uses enterprise funds to account for its Water Utility operations. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City of Lakewood’s various functions. The City of Lakewood uses internal service funds to account for its central garage and graphics operations. Because all of these services predominately benefit governmental rather than businesstype functions, they have been included within governmental activities in the government-wide financial statements.

Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the Water Utility operations.

The Internal Service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report.

The proprietary fund financial statements can be found on pages 33 - 39 of this report.

Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City of Lakewood’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The fiduciary fund financial statement can be found on pages 41 - 44 of this report.

Notes to the basic financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 45 - 99 of this report.

Other information. In addition to the basic financialstatements and accompanying notes, thisreport also presents certain required supplementary information concerning the City of Lakewood’s General Fund budgetary comparison schedule, pension and changes in net pension liabilities and related ratio schedules, pension contribution schedules, and other post-employment funding progress schedule. Required supplementary information can be found on pages 101-117 of this report.

The combining statements referred to earlier in connection with other governmental funds, internal service funds and agency funds are presented immediately following the required supplementary information. Combining and individual fund statements and schedules can be found on pages 12-161 of this report.

Government-wide Financial Analysis
The government-wide financial statements provide long and short-term information about the City’s overall financial condition. The net positions may serve over time as a useful indicator of a government’s financial position. In the case of the City of Lakewood, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $260,756,974 at the close of the most recent fiscal year.

City of Lakewood
Management‘s Discussion and Analysis (Unaudited) (Continued) For The Year Ended June 30, 2023
8 2023 2022* 2023 2022* 2023 2022*
Current and other ass ets $141,930,605 $124,550,392 $ 23,553,005 $21,863,878 $165,483,610 $146,414,270 Capital assets 122,825,268 119,428,556 34,640,067 35,299,798 157,465,335 154,728,354 Total Assets 264,755,873 243,978,948 58,193,072 57,163,676 322,948,945 301,142,624 Deferred Outflow of Resources 15,728,144 8,722,263 1,722,908 936,770 17,451,052 9,659,033 Long-term liabilities outstanding 40,863,748 22,787,231 10,189,380 9,070,495 51,053,128 31,857,726 Other liabilities 16,551,449 19,146,219 5,282,866 3,867,309 21,834,315 23,013,528 Total Liabilities 57,415,197 41,933,450 15,472,246 12,937,804 72,887,443 54,871,254 Deferred Inflow of Resources 5,365,690 16,963,539 1,389,800 2,697,050 6,755,490 19,660,589 Net positions:

Net Investment in Capital Assets 121,076,026 118,073,852 27,470,407 27,686,379 148,546,433 145,760,231 Restricted 41,623,987 38,566,384 - - 41,623,987 38,566,384 Unrestricted 55,003,027 37,163,986 15,583,527 14,779,213 70,586,554 51,943,199 Total Net Position $217,703,040 $193,804,222 $ 43,053,934 $42,465,592 $260,756,974 $236,269,814 *re-stated due to GASB 96 implementation
City of Lakewood
Net Position
Governmental Activities Business-type Activities Total
By far, the largest portion of the City of Lakewood’s net positions, 57 percent, reflects its net investment in capital assets (i.e. land, buildings, improvements other than buildings, machinery and equipment, infrastructure, and construction in progress). The City of Lakewood uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City of Lakewood’s investment in its capital assets are reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from othersources since the capital assets themselves cannot be used to liquidate these liabilities.

Additional portion of the City of Lakewood’s net position, 16.0 percent, represents resources that are subject to external restrictions on how they may be used. The remaining balance of $70,586,554 may be used to meet the government’s ongoing obligation to citizens and creditors, but is subject to designation for specific City programs per the City’s Governmental Fund Balance Policy.

At the end of the current fiscal year, the City of Lakewood is able to report positive balances in all three categories of net positions, both for the government as a whole, as well as for its separate governmental and business-type activities. At year-end, 64 percent of the City of Lakewood’s business-type activities’ net position were invested in capital assets.

City of Lakewood
Management‘s Discussion and Analysis (Unaudited) (Continued) For The Year Ended June 30, 2023
9 2023 2022 2023 2022 2023 2022
Revenues:

Program revenues:

Charges for services $ 15,163,516 $ 11,968,030 $ 13,497,514 $13,787,798 $ 28,661,030 $ 25,755,828 Operating grants and contributions 16,264,335 13,575,994 16,264,335 13,575,994 Capital grants and contributions 2,532,217 2,957,680 2,532,217 2,957,680 General revenues:

Sales taxes 31,642,524 31,256,373 31,642,524 31,256,373 Property taxes 18,058,390 16,945,351 18,058,390 16,945,351 Franchise taxes 1,706,982 1,582,709 1,706,982 1,582,709 Business operation taxes 645,799 578,867 645,799 578,867 Utility user taxes 3,851,673 3,361,075 3,851,673 3,361,075 Other taxes 404,168 582,151 404,168 582,151
Investment income (loss) 2,221,985 (2,028,209) 638,544 (10,565) 2,860,529 (2,038,774) Gain on sale of property 146,530 - - - 146,530 -
Total revenues 92,638,119 80,780,021 14,136,058 13,777,233 106,774,177 94,557,254 Expenses:

General government 11,937,554 9,982,626 11,937,554 9,982,626 Public safety 19,143,257 17,505,002 19,143,257 17,505,002 Transportation 7,344,923 6,503,537 7,344,923 6,503,537
Community development 6,852,859 5,291,189 6,852,859 5,291,189 Health and sanitation 6,601,028 6,083,718 6,601,028 6,083,718 Culture and leisure 15,790,357 13,651,705 15,790,357 13,651,705 Unallocated infrastructure depreciation 2,853,732 2,723,750 2,853,732 2,723,750 Interest and fiscal charges 11,291 6,525 11,291 6,525
Water - - 11,752,016 11,481,342 11,752,016 11,481,342
Total expenses 70,535,001 61,748,052 11,752,016 11,481,342 82,287,017 73,229,394 Transfer in/(out) 1,795,700 1,795,700 (1,795,700) (1,795,700) - - Changes in net position 23,898,818 20,827,669 588,342 500,191 24,487,160 21,327,860 Net position at beginning
of year, as restated 193,804,222 172,976,553 42,465,592 41,965,401 236,269,814 214,941,954 Net position at end of year $ 217,703,040 $ 193,804,222 $43,053,934 $ 42,465,592 $ 260,756,974 $ 236,269,814 City of Lakewood
Changes in Net Position
Governmental Activities Business-type Activities Total
Additional information on the change in net position can be found on page 20 – 21 of this report.

Governmental activities. Overall, governmental revenues increased by $11,858,098 or 14.7 percent and expenditures increased by $8,786,949 or 14.2 percent from prior year. Key elements of the change are as follows:

Investment income increased by $4,250,194 due to the city’s investment earnings revenue benefitting from the sharp rise in interest rates.

Charges for services increased by $3,195,486. Charges for services includes building and safety permits, culture and leisure programs and facilities, rents and concessions, and other revenue. The increase is attributable mainly to the uptick in building permits associated with constructions of accessory dwelling units (ADU) throughout the city, as well as an increase in other revenue for the receipt of a one-time legal settlement. Building permits and other revenue increased by $1,203,377 and $1,293,969, respectively.

City of Lakewood
Management‘s Discussion and Analysis (Unaudited) (Continued) For The Year Ended June 30, 2023
10 The Operating grants and contributions increased by $2,688,341. The increase was derived from a combination of several grants: American Rescue Plan Act Special Revenue Fund (ARPA) for $839,456, Road Maintenance and Rehabilitation Account (RMRA) and Gas Tax for $607,855, and METRO Local Return funds Prop A and Prop C for $435,050.

The Property tax and sales tax revenues increased by a combined total of $1,499,190. Sales tax went up by $386,151. Property taxes went up by $1,113,039 mainly due to the higher property tax valuation experienced in FY 2022-23 compared to the previous fiscal year.

The Culture and leisure expense increased by $2,138,562. Overall salary and benefits experienced an uptick of $549,000 due to cost-of-living adjustment in FY 2022-23. Other increases are attributed to a more robust and additional community programs such as Fest-of-All, Pan Am Fiesta, and Block Party.

General government expense increased by $1,954,298. Salary and benefits increased by $427,000 due to a cost-of-living adjustment. Other increases were due to inflation and growing cost of doing business, as well as growth and volume in overall contractual services compared to the previous fiscal year. .

Public safety’s expense increase of $1,638,255 was due to a combination of increases in several contractual services including $425,918 for the continuing services of a private security patrol and $430,480 for enhanced patrol by the Los Angeles County Sheriff’s Department. Comprehensive helicopter maintenance is performed on a bi-annual basis, including FY 2022-23, contributing to the increase by $389,931.

Community Development’s expense increased by $1,561,670 due to an increase to salary and benefits of $568,000 and an increase of $357,000 for engineering services and economic development consulting.

The Water Fund transferred $1,795,700 into the General Fund to defray the Water Fund’s use of General Fund’s staff, resources, facilities, and infrastructures.

The City of Lakewood was allotted a total of $11.3 million in ARPA funding. Of that, the City has spent $2,421,399 through June 30, 2023. The City has approved plans to spend the full funding by December 31, 2026.

Additional information on activities and change in net position can be found on pages 20 - 21 of this report.

Business-type activities. The business-type activities reflect the City’s water system, which includes water operation, water treatment and water production and distribution. A slight decrease in the water sales of $290,284 was attributed to the overall reduction in demand and consumption of water. The combination of statewide drought conservation efforts and extraordinary amount of rainfall experienced during winter of 2023 adversely impacted revenues. For the year ended June 30, 2023, the City’s business-type activities’ change in net position was $588,342, an increase of 1.4 percent compared to last year. During the year, the water fixed and consumption rates were adjusted to help defray increases in cost of pumping and distributing water and administration of the utility and infrastructure improvements. Major improvements on the horizon include $8 million for Water Main Construction project, $6 million for Well 22B Equipping and Drilling, $1.3 million for Plant 13 Tanks Upgrade project, $1.2 million for Water Operations Improvements and $600,000 for Water Meter Replacement Program.

City of Lakewood
Management‘s Discussion and Analysis (Unaudited) (Continued) For The Year Ended June 30, 2023
11 Financial Analysis of the Government’s Funds
As noted earlier, the City of Lakewood uses fund accounting to ensure and demonstrate compliance with financerelated legal requirements.

Governmental funds. The focus of the City of Lakewood’s governmental funds is to provide information on nearterm inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City of Lakewood’s financing requirements. In particular, spendable fund balance may serve as a useful measure of a government’s net resources at the end of the fiscal year.

As of the end of the fiscal year, the City of Lakewood’s governmental funds reported combined ending fund balances of $121,867,727, an increase of $20,147,122 in comparison with the prior year. As noted in the Governmental Activities section, the increase was primarily due to the local tax measure that continue to add much needed boost to the city’s revenue. Of the City’s governmental funds ending fund balances, $72,195,177 or

59.2 percent constitute committed, assigned and unassigned fund balance, which is available for spending at the government’s discretion within the guidelines of the funding sources. The remainder of fund balance, $49,672,550, is either nonspendable or restricted for purposes imposed by creditors, grantors, contributors, laws or regulations of other governments or through enabling legislation.

Proprietary funds. The City of Lakewood’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail.

Unrestricted net position of the Water Enterprise at the end of the year amounted to $16,243,527 an increase of $862,180 from the prior year. These funds will be used to fund water operations and planned capital improvements. Other factors concerning the finance of this fund have already been addressed in the discussion of the City of Lakewood’s business-type activities.

Major and Nonmajor Fund Financial Highlights
The General Fund is the chief operating fund of the City of Lakewood. At the end of the current fiscal year, committed, assigned and unassigned fund balance of the general fund was $70,543,413, while total fund balance was $81,412,647. The general fund’s ending fund balance increased by $17,043,829 in comparison with the prior year. As a measure of the General Fund’s liquidity, it may be useful to compare only the committed, assigned and unassigned fund balance to total fund expenditures. Committed, assigned and unassigned fund balance represents

86.6 percent of the total general fund expenditures, most of which is committed or assigned to meet the City’s long-term obligations.

Overall, General Fund revenues (including other financing sources) increased year-over-year by $9,829,850. Taxrelated revenue increased by $1,326,579. Current service charges and Other revenue increased by $971,984 and $1,224,900, respectively. The Intergovernmental revenues and Investment income, rents, and concession also increased by $741,504 and $4,309,375, respectively. Overall expenditures (including other financing uses) increased by $4,291,531. Community Development increased by $1,013,613 due to reasons mentioned above in the Governmental Activities section. General government increased by $472,307 due to reasons mentioned above in the Governmental Activities section.

City of Lakewood
Management‘s Discussion and Analysis (Unaudited) (Continued) For The Year Ended June 30, 2023
12 Aside from the General Fund, the city has other major and nonmajor funds. Other major funds are the ARPA, Housing Admin and Program Capital Projects Fund, Capital Improvements Projects Fund, and the nonmajor Governmental Funds for Special Revenue sources. The ARPA fund will always have a zero fund balance due to the unspent allocation being booked as liabilities ready to be used for the next fiscal year. The Housing Admin and Program Capital Projects Fund’s ending fund balance decreased by $170,597 in comparison to the prior year due to the City providing two more rehabilitation loans in FY 2022-23 compared to FY 2021-22, plus the City received less revenue compared to the expenditures within the fiscal year. The Capital Improvements Projects Fund’s ending fund balance increased by $390,958 in comparison to the prior year. The nonmajor Special Revenue Fund consists of numerous accounts such as AB2766, Prop A Transit Fund, Prop C Transportation Fund and several others. The ending fund balance of the nonmajor Special Revenue funds increased by $2,882,932 in comparison to the prior year mainly due to the County and State funds where more revenue came in compared to what was spent within the fiscal year.

General Fund Budgetary Highlights
For the fiscal year ended June 30, 2023, the General Fund’s final amended expenditure budget increased over the original budget by $9,583,271 and actual expenditures were $10,434,965 lower than the final amended budget.

These can be briefly summarized as follows:

Capital projects that either started in FY 2022-23 or rolled over from previous fiscal years were not completed by June 30, 2023. Multi-year projects that had to be carried over into FY 2023-24 totaled of $9,302,126. Some of these projects are as follows: electrical, HVAC and room improvements for $1,845,889; the Centre lighting project for $568,576, replacement of the generators at City Hall for $731,280, Palms Park improvement for $777,810, and citywide ADA improvements for $319,019.

The City experienced a year-over-year increase of $3,103,263 in operating expenditures. This is attributed to a combination of salaries and benefits adjustments and the rising costs of materials and services.

Capital Asset and Debt Administration
Capital assets. The City of Lakewood’s net investment in capital assets for its governmental and business-type activities as of June 30, 2023, amounts to $157,465,335 an increase of $2,736,981 or 1.8 percent of total capital assets over prior year. This investment in capital assets includes land, buildings, improvements, machinery and equipment, park facilities, roads, highways, and bridges. 2023 2022* 2023 2022* 2023 2022*
Land $ 17,041,023 $ 17,041,023 $ 100,000 $ 100,000 $ 17,141,023 $ 17,141,023 Water rights - - 1,834,586 1,834,586 1,834,586 1,834,586 Construction in progress 43,187,031 43,089,201 4,749,839 3,499,642 47,936,870 46,588,843 Infrastructure 38,956,009 35,603,550 - 38,956,009 35,603,550 Structures and improv ements 21,174,358 22,284,164 14,912,181 15,641,756 36,086,539 37,925,920 Equipment 2,186,726 1,138,591 12,642,339 13,662,244 14,829,065 14,800,835 Leas e assets 119,069 157,007 - - 119,069 157,007
Subs cription Ass ets 161,052 115,020 401,122 561,570 562,174 676,590 Total $ 122,825,268 $ 119,428,556 $ 34,640,067 $ 35,299,798 $ 157,465,335 $ 154,728,354 *re-stated due to GASB 96 imp lementation
City of Lakewood
Capital Ass ets (Net of depreciation and amortization ) Governmental Activities Business-type Activities Total
Additional information on the City of Lakewood’s capital assets can be found in Note 9 to the basic financial City of Lakewood
Management‘s Discussion and Analysis (Unaudited) (Continued) For The Year Ended June 30, 2023
13 statements.

Long-term debt. At the end of the current fiscal year, the City of Lakewood’s total long-term debt outstanding decreased by $1,151,876 totaling $6,944,837. This was attributable to normal scheduled debt service payments. 2023 2022* 2023 2022* 2023 2022*
Loan Payable - - - 271,127 - 271,127
Loan Payable-MELPA 6,106,508 6,688,531 6,106,508 6,688,531 ADA Financing Program 154,123 309,075 - - 154,123 309,075 Leas e Payable 110,343 151,390 - - 110,343 151,390
Subs cription Liabilities 159,252 115,020 414,611 561,570 573,863 676,590 Total 423,718 $ $ 575,485 $ 6,521,119 $ 7,521,228 $ 6,944,837 $ 8,096,713 *re-stated due to GASB 96 implementation
City of Lakewood
Summary of Outstanding Debt
Governmental Activities Business-type Activities Total
Additional information on the City of Lakewood’s long-term debt can be found in Note 10 to the basic financial statements.

Economic Factors and Next Year’s Budgets and Rates
The City prudently anticipates and conservatively budgets for General Fund revenues to gradually increase as the economy transitions and recovers from the effects of the COVID-19 pandemic. The City’s sales tax revenues have shown a slow but continuous increase and the local sales and use tax (Measure L) has provided a cushion from the diminished revenue from other revenue sources. The passage provided a timely and much-needed stabilizing effect for the city. Other anticipated increase includes a modest increase in property tax revenues, a growth in current service charges, and a steady flow of activities in building permits as the impact of COVID-19 subsides and residents look to build more ADUs. Interest earnings are expected to take a slight dip, and gas tax and fines are both expected to remain flat through 2025.

The City’s general fund operational expenditures are also expected to increase annually over the next five years; in Fiscal Year 2023-24 General Fund expenditures increased by 5.9 percent. Employee services costs increased by 3.9 percent in Fiscal Year 2022-23 over that of the prior year. The City is a contract-city where 40.1 percent of the cost of operations is employee service-related, and contract services made up 45.2 percent of the City’s General Fund operational costs. The April to April Consumer Price Index (CPI) for the Los Angeles, Riverside, and Orange County region, which is the basis for many of the City’s contract increases, was 3.8 percent in 2023.

Overall, General Fund contract services increased by 9.6 percent in Fiscal Year 2022-23. The City’s water, refuse and building and safety fees also include the local CPI as a factor in determining rate increases.

The City weathered the Great Recession, the prolonged sluggish multi-year recovery, and now trying to withstand the lasting effects of the COVID-19 pandemic by adhering to its philosophy to stay focused on what is truly important – the core functions of operating a city – resulting in a healthy community for residents and business.

By keeping this focus, the City has built a large capital base that includes the entire inventory of City assets:
streets, sidewalks, water system, trees, parks, community facilities and goodwill. The City’s goodwill, cultivated through recreation, community services, public safety and economic development programs, creates the neighborly sense of community we all enjoy. Further detail regarding the impact of other factors on the City’s budget and finances can be read in the Transmittal Letter.

City of Lakewood
Management‘s Discussion and Analysis (Unaudited) (Continued) For The Year Ended June 30, 2023
14 Requests for Information
This financial report is designed to provide a general overview of the City’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Director of Finance and Administrative Services, City of Lakewood, Post Office Box 220, Lakewood, CA 90712.

BASIC FINANCIAL STATEMENTS
15 16

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

Cash and investments $ 107,909,709 $ 20,379,334 $ 128,289,043 Receivables:

Accounts 9,652,293 1,605,863 11,258,156
Accrued revenue - 1,100,042 1,100,042
Leases receivables 351,858 45,104 396,962
Internal balances 660,000 (660,000) -
Prepaid items 21,077 - 21,077
Inventories 123,744 70,140 193,884
Total current assets 118,718,681 22,540,483 141,259,164 Noncurrent assets:

Restricted cash and investments:

Cash in escrow 579,560 28,466 608,026
Held by City - 40,205 40,205
Notes receivable 2,423,622 - 2,423,622
Leases receivable 1,142,907 943,851 2,086,758
Receivable from Successor Agency 16,105,533 - 16,105,533 Land held for resale 2,960,302 - 2,960,302
Capital assets:

Nondepreciable 60,228,054 6,684,425 66,912,479
Depreciable, net 62,317,093 27,554,520 89,871,613
Intangible assets, net 280,121 401,122 681,243
Total capital assets 122,825,268 34,640,067 157,465,335 Total noncurrent assets 146,037,192 35,652,589 181,689,781 Total assets 264,755,873 58,193,072 322,948,945

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resources related to pensions 13,708,087 1,523,121 15,231,208 Deferred outflows of resources related to OPEB 2,020,057 199,787 2,219,844 Total deferred outflows of resources 15,728,144 1,722,908 17,451,052 Primary Government
City of Lakewood
Statement of Net Position
June 30, 2023
See accompanying Notes to the Basic Financial Statements. 18 Governmental Business-Type
Activities Activities Total

LIABILITIES
Current liabilities:

Accounts payable 4,909,844 4,301,643 9,211,487
Retention payable 579,560 44,281 623,841
Accrued liabilities 633,186 53,951 687,137
Accrued interest payable 1,070 12,637 13,707
Unearned revenues 9,208,758 20,382 9,229,140
Long-term liabilities - due within one year 1,219,031 849,972 2,069,003 Total current liabilities 16,551,449 5,282,866 21,834,315 Noncurrent liabilities:

Liabilities payable from restricted assets:

Customer deposits 1,051,624 40,205 1,091,829
Long-term liabilities - due in more than one year 1,098,937 5,857,151 6,956,088 Aggregate net pension liability 37,939,180 4,215,465 42,154,645 Net OPEB liability 774,097 76,559 850,656
Total noncurrent liabilities 40,863,838 10,189,380 51,053,218 Total liabilities 57,415,287 15,472,246 72,887,533

DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources related to pensions 2,183,309 242,590 2,425,899 Deferred inflows of resources related to OPEB 1,728,972 170,998 1,899,970 Deferred inflows of resources related to leases 1,453,409 976,212 2,429,621 Total deferred inflows of resources 5,365,690 1,389,800 6,755,490

NET POSITION
Net investment in capital assets 121,076,026 27,470,407 148,546,433 Restricted for:

Transportation 25,952,146 - 25,952,146
Public safety 30,958 - 30,958
Community development 13,139,654 - 13,139,654
Health and sanitation 274,395 - 274,395
Culture and leisure 2,226,834 - 2,226,834
Unrestricted 55,003,027 15,583,527 70,586,554
Total net position $ 217,703,040 $ 43,053,934 $ 260,756,974 Primary Government
City of Lakewood
Statement of Net Position (Continued)
June 30, 2023
See accompanying Notes to the Basic Financial Statements. 19 Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Governmental Activities:

General government $ 11,937,554 $ 2,701,247 $ 2,332,216 $ - Public safety 19,143,257 413,873 1,753,403 -
Transportation 7,344,923 - 11,517,484 2,404,102
Community development 6,852,859 3,164,754 442,595 111,238 Health and sanitation 6,601,028 7,145,242 218,637 -
Culture and leisure 15,790,357 1,738,400 - 16,877
Unallocated infrastructure depreciation 2,853,732 - - - Interest and fiscal charges 11,291 - - -
Total governmental activities 70,535,001 15,163,516 16,264,335 2,532,217 Business-type Activities:

Water 11,752,016 13,497,514 - -
Total business-type activities 11,752,016 13,497,514 - - Total primary government $ 82,287,017 $ 28,661,030 $ 16,264,335 $ 2,532,217 Program Revenues
City of Lakewood
Statement of Activities
For the Year Ended June 30, 2023
See accompanying Notes to the Basic Financial Statements. 20 Governmental Business-Type
Functions/Programs Activities Activities Total
Governmental Activities:

General government $ (6,904,091) $ - $ (6,904,091)
Public safety (16,975,981) - (16,975,981)
Transportation 6,576,663 - 6,576,663
Community development (3,134,272) - (3,134,272)
Health and sanitation 762,851 - 762,851
Culture and leisure (14,035,080) - (14,035,080)
Unallocated infrastructure depreciation (2,853,732) - (2,853,732) Interest and fiscal charges (11,291) - (11,291)
Total governmental activities (36,574,933) - (36,574,933) Business-type Activities:

Water - 1,745,498 1,745,498
Total business-type activities - 1,745,498 1,745,498
Total primary government (36,574,933) 1,745,498 (34,829,435) General revenues:

Taxes:

Sales taxes - Bradley Burns 31,642,524 - 31,642,524
Property taxes 18,058,390 - 18,058,390
Franchise taxes 1,706,982 - 1,706,982
Business operation taxes 645,799 - 645,799
Utility user taxes 3,851,673 - 3,851,673
Other taxes 404,168 - 404,168
Total taxes 56,309,536 - 56,309,536
Investment income 2,221,985 638,544 2,860,529
Gain on sale of property 146,530 - 146,530
Transfers 1,795,700 (1,795,700) -
Total general revenues 60,473,751 (1,157,156) 59,316,595 Changes in net position 23,898,818 588,342 24,487,160
Net position - beginning of year 193,804,222 42,465,592 236,269,814 Net position - end of year $ 217,703,040 $ 43,053,934 $ 260,756,974 Net (Expense) Revenue and
Changes in Net Position
City of Lakewood
Statement of Activities (Continued)
For the Year Ended June 30, 2023
See accompanying Notes to the Basic Financial Statements. 21 22

FUND FINANCIAL STATEMENTS
23 24

GOVERNMENTAL FUND FINANCIAL STATEMENTS
25 American Housing Admin Lakewood Capital
Rescue Plan and Program Improvements
General Act Special Capital Capital Projects
Fund Revenue Fund Projects Fund Fund
ASSETS
Cash and investments $ 68,501,459 $ 8,893,848 $ 2,190,093 $ 1,840,510 Restricted cash and investments:

Cash in escrow - - - 579,560
Accounts receivable 7,896,769 - - 524,993
Prepaid items 19,430 - - -
Inventories 59,274 - - -
Due from other funds 800,668 - - -
Receivable from Successor Agency 10,790,530 - 5,315,003 - Notes receivable - - 1,920,068 -
Leases receivable 1,494,765 - - -
Land held for resale - - 2,960,302 -
Total assets $ 89,562,895 $ 8,893,848 $ 12,385,466 $ 2,945,063

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable $ 4,156,158 $ 6,202 $ 104,195 $ 4,055
Accrued liabilities 617,403 - - -
Retention payable - - - 579,560
Deposit payable 1,050,757 - 867 -
Due to other funds - - - -
Unearned revenue 308,587 8,887,646 - -
Total liabilities 6,132,905 8,893,848 105,062 583,615
Deferred inflows of resources:

Unavailable revenue 563,934 - - 524,993
Deferred inflows of resources related to leases 1,453,409 - - - Total deferred inflows of resources 2,017,343 - - 524,993 Fund balances:

Nonspendable
Prepaid items 19,430 - - -
Inventories 59,274 - - -
Receivables from Successor Agency 10,790,530 - - -
Restricted
Public safety - - - -
Transportation projects and street maintenance - - - -
Community development - - 12,280,404 -
Health and sanitation - - - -
Culture and leisure - - - -
Committed
Self insurance 4,000,000 - - -
Pension and personnel obligations 6,874,209 - - -
Capital projects 5,222,544 - - 1,836,455
Refuse stabilization 1,964,966 - - -
Economic uncertainties 14,610,137 - - -
Assigned
Infrastructure development 6,000,000 - - -
Measure L CIP reserve 5,612,901 - - -
Equipment replacement 2,864,987 - - -
Contract emergency services 2,399,609 - - -
Legal fees contingency 1,300,000
Pension obligations paydown 1,000,000
Measure L long-term reserve 14,600,000 - - -
Unassigned (deficit) 4,094,060 - - -
Total fund balances 81,412,647 - 12,280,404 1,836,455
Total liabilities, deferred inflows of
resources, and fund balances $ 89,562,895 $ 8,893,848 $ 12,385,466 $ 2,945,063 Major Funds
June 30, 2023
City of Lakewood
Balance Sheet
Governmental Funds
See accompanying Notes to the Basic Financial Statements. 26 Nonmajor Total
Governmental Governmental
Funds Funds
ASSETS
Cash and investments $ 26,483,799 $ 107,909,709
Restricted cash and investments:

Cash in escrow - 579,560
Accounts receivable 1,230,531 9,652,293
Prepaid items - 19,430
Inventories - 59,274
Due from other funds - 800,668
Receivable from Successor Agency - 16,105,533
Notes receivable 503,554 2,423,622
Leases receivable - 1,494,765
Land held for resale - 2,960,302
Total assets $ 28,217,884 $ 142,005,156

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable $ 607,247 $ 4,877,857
Accrued liabilities - 617,403
Retention payable - 579,560
Deposit payable - 1,051,624
Due to other funds 800,668 800,668
Unearned revenue 12,525 9,208,758
Total liabilities 1,420,440 17,135,870
Deferred inflows of resources:

Unavailable revenue 459,223 1,548,150
Deferred inflows of resources related to leases - 1,453,409 Total deferred inflows of resources 459,223 3,001,559
Fund balances:

Nonspendable
Prepaid items - 19,430
Inventories - 59,274
Receivables from Successor Agency - 10,790,530
Restricted
Public safety 30,958 30,958
Transportation projects and street maintenance 22,529,227 22,529,227 Community development 352,452 12,632,856
Health and sanitation 274,395 274,395
Culture and leisure 3,335,880 3,335,880
Committed
Self insurance - 4,000,000
Pension and personnel obligations - 6,874,209
Capital projects - 7,058,999
Refuse stabilization - 1,964,966
Economic uncertainties - 14,610,137
Assigned
Infrastructure development - 6,000,000
Measure L CIP reserve - 5,612,901
Equipment replacement - 2,864,987
Contract emergency services - 2,399,609
Legal fees contingency 1,300,000
Pension obligations paydown 1,000,000
Measure L long-term reserve - 14,600,000
Unassigned (deficit) (184,691) 3,909,369
Total fund balances 26,338,221 121,867,727
Total liabilities, deferred inflows of
resources, and fund balances $ 28,217,884 $ 142,005,156 Governmental Funds
June 30, 2023
City of Lakewood
Balance Sheet (Continued)
See accompanying Notes to the Basic Financial Statements. 27 28
Total Fund Balances - Total Governmental Funds $ 121,867,727 Amounts reported for governmental activities in the statement of net position are different because:

Nondepreciable assets $ 60,228,054
Depreciable/amortizable assets 62,597,214
Less: Amount reported in Internal Service Fund
Depreciable assets (104,899) 122,720,369
1,548,150
783,246
Lease payable (264,466)
Subscription liability (159,252)
Interest payable (1,070)
Compensated absences (1,894,250)
Pensions:

Deferred outflows of resources related to pensions 13,708,087 Aggregate net pension liabilities (37,939,180)
Deferred inflows of resources related to pensions (2,183,309) Other postemployment benefits:

Deferred outflows of resources related to OPEB 2,020,057 Net OPEB liabilities (774,097)
Deferred inflows of resources related to OPEB (1,728,972) Net position of governmental activities $ 217,703,040
Internal service funds are used by the City to charge the cost of materials and supplies, maintenance and repair of vehicles and equipment and printing services provided to the various departments of the City. The assets and liabilities of the internal service funds are included in governmental activities in the Statement of Net Position. Internal Service funds net position, net of the deficit in the amount of $660,000 reported in Business-type activities.

Some of the City's receivables for operating and capital grant reimbursements, and taxes will be collected after year end, but are not available soon enough to pay for current-period expenditures, and therefore, are reported with an offset to unavailable revenues in the funds.

Long-term liabilities applicable to the City's governmental activities are not due and payable in the current period and, accordingly are not reported as fund liabilities. All liabilities, both current and long-term and related deferred outflows and inflows of resources are reported in the Statement of Net Position:

Amount reported in government-wide statement of position:

City of Lakewood
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2023
Capital assets used in governmental activities are not current financial resources and therefore are not reported in governmental funds. Those assets consist of:

See accompanying Notes to the Basic Financial Statements. 29 American Housing Admin Lakewood Capital
Rescue Plan and Program Improvements
General Act Special Capital Capital Projects
Fund Revenue Fund Projects Fund Fund
REVENUES:

Taxes 45,154,227 $ $ - $ - $ -
Licenses and permits 2,214,773 - - -
Fines and forfeitures 682,411 - - -
Investment income, rents, and concessions 3,054,219 - 76,613 - Intergovernmental revenues 11,498,072 1,527,254 - 877,153 Current service charges 9,658,905 - - -
Other 3,153,184 - 162,000 -
Total revenues 75,415,791 1,527,254 238,613 877,153
EXPENDITURES:

Current:

General government 11,216,593 202,802 - -
Public safety 17,717,031 725,174 - -
Transportation 3,774,297 62,316 - -
Community development 6,138,038 133,688 209,210 -
Health and sanitation 6,442,584 - - -
Culture and leisure 13,715,968 318,375 - -
Capital outlay:

General government 443,096 - - -
Public safety 217,398 75,685 - -
Transportation 177,240 - - 486,195
Community development 18,710 - - -
Culture and leisure 1,482,332 9,214 - -
Debt service:

Principal retirement 270,147 - - -
Interest payment 12,333 - - -
Total expenditures 61,625,767 1,527,254 209,210 486,195

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 13,790,024 - 29,403 390,958
OTHER FINANCING SOURCES (USES):

Transfers in 4,302,783 - - -
Transfers out (1,188,268) - (200,000) -
Issuance of debt 118,380 - - -
Proceeds from sale of properties 20,910 - - -
Total other financing sources (uses) 3,253,805 - (200,000) - NET CHANGES IN FUND BALANCES 17,043,829 - (170,597) 390,958 FUND BALANCES:

Beginning of year, 64,368,818 - 12,451,001 1,445,497
End of year $ 81,412,647 $ - $ 12,280,404 $ 1,836,455
(Continued)
Major Funds
City of Lakewood
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the Year Ended June 30, 2023
See accompanying Notes to the Basic Financial Statements. 30 Nonmajor Total
Governmental Governmental
Funds Funds
REVENUES:

Taxes $ 3,900,353 $ 49,054,580
Licenses and permits 262 2,215,035
Fines and forfeitures - 682,411
Investment income (loss), rents, and concessions 817,146 3,947,978 Intergovernmental revenues 9,667,276 23,569,755
Current service charges - 9,658,905
Other - 3,315,184
Total revenues 14,385,037 92,443,848
EXPENDITURES:

Current:

General government 23,744 11,443,139
Public safety 289,385 18,731,590
Transportation 3,148,531 6,985,144
Community development 205,679 6,686,615
Health and sanitation 26,136 6,468,720
Culture and leisure 180,806 14,215,149
Capital outlay:

General government 214,725 657,821
Public safety - 293,083
Transportation 4,897,049 5,560,484
Community development 297,235 315,945
Culture and leisure 37,352 1,528,898
Debt service:

Principal retirement - 270,147
Interest payment - 12,333
Total expenditures 9,320,642 73,169,068

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 5,064,395 19,274,780
OTHER FINANCING SOURCES (USES):

Transfers in - 4,302,783
Transfers out (2,307,083) (3,695,351)
Issuance of debt - 118,380
Proceeds from sale of properties 125,620 146,530
Total other financing sources (uses) (2,181,463) 872,342 NET CHANGES IN FUND BALANCES 2,882,932 20,147,122
FUND BALANCES:

Beginning of year, 23,455,289 101,720,605
End of year $ 26,338,221 $ 121,867,727
(Concluded)
Governmental Funds
For the Year Ended June 30, 2023
City of Lakewood
Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) See accompanying Notes to the Basic Financial Statements. 31 Net changes in fund balances - total governmental funds: $ 20,147,122 Amounts reported for governmental activities in the Statement of Activities are different because:

Capital outlay expenditures, $16,104 reported in Internal Service Funds $ 8,356,231 Non-capital expenditures reclassified to functional expense (156,896) Gain on disposal of capital assets (272,851)
Depreciation and amortization expense, net of $27,654 reported in Internal Service Funds (4,518,222) 3,408,262 47,741
Issuance of lease payable and SBITA liability (118,380) Lease, subscription liability, loan and ADA financing payment 270,147 Change in interest payable 1,042
Change in compensated absences (32,952)
(363,721)
560,802
(1,415)
(19,830)
Change in net position of governmental activities $ 23,898,818 Internal service funds are used by management to charge the costs of certain activities, such as fleet repair and maintenance, central stores and printing services to individual funds. The net revenue (expense) of these internal service funds are reported as governmental activities (net of $57,866 allocated to business-type activities).

Certain accrued revenues such as taxes, grants, and City's general billing charges, do not provide current financial resources and therefore, are not reported in the governmental funds as revenues. This is the amount of the net change in these accrued revenue amounts during the current period.

Some expenses reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in the governmental funds:

City of Lakewood
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities For the Year Ended June 30, 2023
Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over the estimated useful lives as depreciation expense. This is the amount by which capital expenditures exceeded depreciation in the current period:

Pension expense of CalPERS Plan, net of pension contribution made after measurement date in the amount of $4,249,841
Pension expense of PARS Plan, net of pension contribution made during the measurement period in the amount of $831,760
OPEB expense, net of OPEB contribution made during the measurement period in the amount of $603,276
See accompanying Notes to the Basic Financial Statements. 32 PROPRIETARY FUND FINANCIAL STATEMENTS
33 Business-Type Governmental
Activities - Activities -
Water Internal
Enterprise Fund Service Funds
ASSETS
Current assets:

Cash and investments $ 20,379,334 $ -
Restricted cash and investments:

Cash in escrow 28,466 -
Customer deposits 40,205 -
Accounts receivable 1,605,863 -
Accrued revenue 1,100,042 -
Inventories 70,140 64,470
Prepaids - 1,647
Leases receivable 45,104 -
Total current assets 23,269,154 66,117
Noncurrent assets:

Leases receivable 943,851 -
Capital assets:

Capital assets, not being depreciated:

Land 100,000 -
Water rights 1,834,586 -
Construction in progress 4,749,839 -
Capital assets, being depreciated:

Source of supply 6,878,096 -
Pumping plant 996,284 -
Water treatment 4,852,172 -
Transmission/distribution 34,548,038 -
General plant 5,884,600 -
Equipment 15,655,435 1,403,604
Less: accumulated depreciation (41,260,105) (1,298,705) Intangible asset, net 401,122 -
Total capital assets 34,640,067 104,899
Total noncurrent assets 35,583,918 104,899
Total assets 58,853,072 171,016
DEFERRED OUTFLOWS OF RESOURCES:

Deferred outflows of resources related to pensions 1,523,121 - Deferred outflows of resources related to OPEB 199,787 - Total deferred outflows of resources 1,722,908 -
(Continued)
City of Lakewood
Statement of Net Position
Proprietary Funds
June 30, 2023
See accompanying Notes to the Basic Financial Statements. 34 Business-Type Governmental
Activities - Activities -
Water Internal
Enterprise Fund Service Funds

LIABILITIES
Current liabilities:

Accounts payable $ 4,301,643 $ 31,987
Retention payable 44,281 -
Accrued liabilities 53,951 15,783
Accrued interest payable 12,637 -
Customer deposit 40,205 -
Unearned revenues 20,382 -
Compensated absences, due within one year 93,002 -
Lease payable, due within one year 599,792 -
Subscription liabilities, due in one year 157,178
Total current liabilities 5,323,071 47,770
Noncurrent liabilities:

Compensated absences, due in more than one year 93,002 - Lease payable, due in more than one year 5,506,716 -
Subscription liabilities, due in more than one year 257,433 Aggregate net pension liability 4,215,465 -
Net OPEB liability 76,559 -
Total noncurrent liabilities 10,149,175 -
Total liabilities 15,472,246 47,770

DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources related to pensions 242,590 - Deferred inflows of resources related to OPEB 170,998 - Deferred inflows of resources related to leases 976,212 - Total deferred inflows of resources 1,389,800 -

NET POSITION
Net investment in capital assets 27,470,407 104,899
Unrestricted 16,243,527 18,347
Total net position 43,713,934 $ 123,246
Adjustment to reflect the consolidation of internal
service fund activities to the water enterprise fund (660,000) Net position of business-type activities $ 43,053,934
(Concluded)
Statement of Net Position (Continued)
Proprietary Funds
June 30, 2023
City of Lakewood
See accompanying Notes to the Basic Financial Statements. 35 36
Business-Type Governmental
Activities- Activities -
Water Internal
Enterprise Fund Service Funds
OPERATING REVENUES:

Metered water sales $ 11,003,910 $ -
Reclaimed water sales 446,593 -
Fire protection 198,095 -
Service initiation and restoration charges 33,550 -
Billing to departments - 123,426
Other revenues 1,815,366 -
Total operating revenues 13,497,514 123,426
OPERATING EXPENSES:

Operations:

Supply, transmission and distribution 7,746,821 -
Customer service 213,884 -
Administration 1,474,561 -
Operating expenses 43,686 1,361,736
Depreciation and amortization 1,978,154 27,654
Total operating expenses 11,457,106 1,389,390
OPERATING INCOME (LOSS) 2,040,408 (1,265,964)
NONOPERATING REVENUES (EXPENSES):

Investment income 638,544 -
Interest expense (213,844) -
Loss on disposal capital assets (23,200)
Total nonoperating revenues (expenses) 401,500 -
INCOME (LOSS) BEFORE TRANSFERS 2,441,908 (1,265,964)
TRANSFERS:

Transfers in - 1,188,268
Transfers out (1,795,700) -
Total transfers (1,795,700) 1,188,268
CHANGES IN NET POSITION 646,208 (77,696)
NET POSITION:

Beginning of the year 43,067,726 200,942
End of the year $ 43,713,934 $ 123,246
Changes in net position - Business-type activities $ 646,208 Adjustment to reflect the consolidation of the internal service fund activities related to the Water Enterprise Fund (57,866) Changes in net position of business-type activities $ 588,342 City of Lakewood
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
For the Year Ended June 30, 2023
See accompanying Notes to the Basic Financial Statements. 37 Business-Type Governmental
Activities- Activities -
Water Internal
Enterprise Fund Service Fund
CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from customers $ 13,416,467 $ -
Receipts from interfund services provided - 123,426
Payments to suppliers (4,712,476) (1,295,590)
Payments to employees (3,007,930) -
Net cash provided by (used in) operating activities 5,696,061 (1,172,164)

CASH FLOWS FROM NONCAPITAL AND
RELATED FINANCING ACTIVITIES:

Transfers in/(out) (1,795,700) 1,188,268
Net cash (used in) noncapital financing activities (1,795,700) 1,188,268

CASH FLOWS FROM CAPITAL FINANCING
ACTIVITIES:

Acquisition of capital assets (1,389,534) (16,104)
Principal paid on leases and subscription liabilities (1,000,108) - Interest paid on revenue bonds (215,461) -
Net cash (used in) capital and related financing activities (2,605,103) (16,104) CASH FLOWS FROM INVESTING ACTIVITIES:

Investment income 638,544 -
Net cash provided by investing activities 638,544 -
Net increase in cash and cash equivalents 1,933,802 -
CASH AND CASH EQUIVALENTS:

Beginning of year 18,514,203 -
End of year $ 20,448,005 $ -
CASH AND CASH EQUIVALENTS:

Cash and investments $ 20,379,334 $ -
Cash in escrow 28,466 -
Customer deposit 40,205 -
Total cash and cash equivalents $ 20,448,005 $ -
(Continued)
City of Lakewood
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2023
See accompanying Notes to the Basic Financial Statements. 38 Business-Type Governmental
Activities- Activities -
Water Internal
Enterprise Fund Service Fund

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

Operating income (loss) $ 2,040,408 $ (1,265,964)
Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities:

Depreciation 1,978,154 27,654
Changes in assets, deferred outflows of resources, liabilities, and deferred inflows of resources:
(Increase) decrease in accounts receivable 127,040 -
(Increase) decrease in accrued revenue 4,787 -
(Increase) decrease in prepaids - (58,056)
(Increase) decrease in inventories 14,373 110,823
(Increase) decrease in lease receivable 40,609 -
(Increase) decrease in deferred outflows of resources related to pensions (848,558) - Increase (decrease) in accounts payable 1,772,044 8,390 Increase (decrease) in accrued liabilities 11,143 4,989 Increase (decrease) in customer deposits 7,142 -
Increase (decrease) in unearned revenues (213,294) -
Increase (decrease) in compensated absences (17,257) -
Increase (decrease) in net pension liability 2,050,974 - Increase (decrease) in net OPEB liability 35,746 -
Increase (decrease) in deferred inflows of resources related to pensions (1,224,313) - Increase (decrease) in deferred inflows of resources related to OPEB (35,606) - Increase (decrease) in deferred inflows of resources related to leases (47,331) - Total adjustments 3,655,653 93,800
Net cash provided by (used in) operating activities $ 5,696,061 $ (1,172,164) (Concluded)
Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended June 30, 2023
City of Lakewood
See accompanying Notes to the Basic Financial Statements. 39 40

FIDUCIARY FUND FINANCIAL STATEMENTS
41 42
Successor
Agency to the
City of Lakewood
Redevelopment
Agency
Private Purpose
Trust Fund
ASSETS:

Cash and investments $ 1,083,802
Total assets 1,083,802
LIABILITIES:

Due to the City of Lakewood 16,105,533
Total liabilities 16,105,533
NET POSITION (DEFICIT):

Held in trust (15,021,731)
Total net position (deficit) $ (15,021,731)
City of Lakewood
Statement of Fiduciary Net Position
Fiduciary Fund
June 30, 2023
See accompanying Notes to the Basic Financial Statements. 43 Successor
Agency to the
City of Lakewood
Redevelopment
Agency
Private Purpose
Trust Fund
ADDITIONS:

Redevelopment property tax trust fund $ 639,730
Investment loss (382,030)
Total additions 257,700
DEDUCTIONS:

Overhead 251,000
Total deductions 251,000
CHANGE IN NET POSITION 6,700
NET POSITION (DEFICIT):

Beginning of year (15,028,431)
End of year $ (15,021,731)
City of Lakewood
Statement of Changes in Fiduciary Net Position
Fiduciary Fund
For the Year Ended June 30, 2023
See accompanying Notes to the Basic Financial Statements. 44 45

NOTES TO THE BASIC FINANCIAL STATEMENTS
46 City of Lakewood
Index to the Notes to the Basic Financial Statements
For the Year Ended June 30, 2023
47 Note 1 – Reporting Entity ................................................................................................................................... 49 Note 2 – Summary of Significant Accounting Policies ...................................................................................... 50 A. Basis of Presentation ........................................................................................................................... 50 B. Measurement Focus, Basis of Accounting and Financial Statements Presentation ............................ 50 C. Cash, Cash Equivalents, and Investments........................................................................................... 53 D. Restricted Cash in Escrow................................................................................................................... 53 E. Fair Value Measurement..................................................................................................................... 53 F. Receivables ......................................................................................................................................... 54 G. Inventories........................................................................................................................................... 54 H. Prepaid Items....................................................................................................................................... 54 I. Interfund Transactions......................................................................................................................... 54 J. Land Held for Resale .......................................................................................................................... 54 K. Leases.................................................................................................................................................. 54 L. Capital Assets...................................................................................................................................... 56 M. Subscription-Based Information Technology Arrangements (SBITAs) ............................................. 56 N. Compensated Absences....................................................................................................................... 57 O. Pensions............................................................................................................................................... 57 P. Other Postemployment Benefits (“OPEB”) Plan ................................................................................ 58 Q. Long-Term Debt.................................................................................................................................. 59 R. Claims and Judgments......................................................................................................................... 59 S. Deferred Outflows of Resources and Deferred Inflows of Resources ................................................ 59 T. Net Position ......................................................................................................................................... 59 U. Fund Balances..................................................................................................................................... 60 V. Property Taxes .................................................................................................................................... 61 W. Use of Estimates.................................................................................................................................. 61 X. Implementation of New GASB Pronouncements ............................................................................... 61 Note 3 – Cash and Investments............................................................................................................................ 62 A. Demand Deposits ................................................................................................................................ 63 B. Investments Authorized by the California Government Code and the City’s Investment Policy.................................................................................................... 63 C. Investments Authorized by Debt Agreement...................................................................................... 64 D. Risk Disclosures.................................................................................................................................. 64 E. Fair Value Measurement Disclosure................................................................................................... 66 F. Investment in Local Agency Investment Fund (LAIF)....................................................................... 66 G. Investment in California Asset Management Program ....................................................................... 67 Note 4 – Notes Receivable .................................................................................................................................... 67 Note 5 – Leases Receivable and Lease-Related Deferred Inflows of Resources.............................................. 68 A. Governmental Activities ..................................................................................................................... 68 B. Business-Type Activities..................................................................................................................... 69 Note 6 – Interfund Transactions.......................................................................................................................... 70 A. Due From and To Other Funds ........................................................................................................... 70 B. Transfers In and Out............................................................................................................................ 70 City of Lakewood
Index to the Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023
48 Note 7 – Land Held for Resale ............................................................................................................................. 71 Note 8 – Receivable from Successor Agency ...................................................................................................... 71 Note 9 – Capital Assets......................................................................................................................................... 73 A. Governmental Activities ..................................................................................................................... 73 B. Business-Type Activities..................................................................................................................... 74 Note 10 – Long-Term Liabilities.......................................................................................................................... 75 A. Governmental Activities ..................................................................................................................... 75 B. Business-Type Activities..................................................................................................................... 76 Note 11 – Defined Contribution Plan.................................................................................................................. 78 Note 12 – Defined Benefit Pension Plan.............................................................................................................. 78 A. CalPERS Plan...................................................................................................................................... 79 B. Retirement Enhancement Plan ............................................................................................................ 85 Note 13 – Other Postemployment Benefits (“OPEB”)....................................................................................... 90 Note 14 – Deferred Compensation Plan.............................................................................................................. 95 Note 15 – Liabilities, Property, and Workers’ Compensation Protection....................................................... 96 A. Description of Self-Insurance Pool Pursuant to Joint Powers Agreement.......................................... 96 B. Primary Self-Insurance Programs of the Authority............................................................................. 96 C. Purchased Insurance............................................................................................................................ 97 D. Adequacy of Protection....................................................................................................................... 97 Note 16 – Commitments and Contingencies....................................................................................................... 98 A. Lawsuits .............................................................................................................................................. 98 B. Lighting Maintenance Contract with City Light and Power Lakewood, Inc. ..................................... 98 C. Agreement for Allocation of Tax Increment Revenue........................................................................ 98 D. Construction Commitments................................................................................................................. 98 Note 17 – Individual Fund Disclosures ............................................................................................................... 99 Note 18 – Net Investment in Capital Assets........................................................................................................ 99 Note 19 – Agreement with Paramount Petroleum............................................................................................. 99 City of Lakewood
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023
49 Note 1 – Reporting Entity
The City of Lakewood, California, (the “City”) was incorporated April 16, 1954, under the general laws of the State of California and enjoys all the rights and privileges pertaining to "General Law" cities.

The Lakewood Public Financing Authority (the “Financing Authority”) was created on December 12, 1995, by a Joint Exercise of Powers Agreement between the City and the former Redevelopment Agency pursuant to the State of California Joint Exercise of Powers Act. The primary purpose of the Financing Authority is assisting in the financing and refinancing of certain public programs and projects of the City or the Agency.

Blended Component Unit
In evaluating how to define the City for financial reporting purposes, management has considered all potential component units. The primary criteria for including a potential component unit within the reporting entity are the governing body’s financial accountability and a financial benefit or burden relationship and whether it is misleading to exclude. A primary government is financially accountable and shares a financial benefit or burden relationship, if it appoints a voting majority of an organization’s governing body and it is able to impose its will on the organization, or if there is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens on the primary government. A primary government may also be financially accountable if an organization is fiscally dependent on the primary government regardless of whether the organization has a separately elected governing board, a governing board appointed by a higher level of government, or a jointly appointed board, and there is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens on the primary government.

Management determined that the following component unit should be blended based on the criteria above:

Although the following is legally separate from the City, it has been “blended” as though it is part of the City because the component unit’s governing body is substantially the same as the City’s and there is a financial benefit or burden relationship between the City and the component unit; management of the City has operational responsibilities for the component unit; and/or the component unit provides services entirely, or almost entirely, to the City or otherwise exclusively, or almost exclusively, benefits the City, even though it does not provide services directly to it.

The Financing Authority
The members of the City Council also act as the governing body of the Financing Authority.

The Financing Authority is managed by employees of the City. No allocation of the City's salary and overhead expenses are made to the Financing Authority.

The City and the Financing Authority are financially interdependent. The Financing Authority arranges financing issues for the City. The City pays the debt service on the Financing Authority's financing issues.

No individual financial statements are prepared for the Financing Authority.

City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
50 Note 2 – Summary of Significant Accounting Policies
A. Basis of Presentation
Financial statement presentation follows the recommendations promulgated by the Governmental Accounting Standards Board (“GASB”) commonly referred to as accounting principles generally accepted in the United States of America (“U.S. GAAP”). GASB is the accepted standard-setting body for establishing governmental accounting and financial reporting standards.

B. Measurement Focus, Basis of Accounting and Financial Statements Presentation The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for by providing a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions. The minimum number of funds is maintained in accordance with legal and managerial requirements.

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

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

Certain types of transactions are reported as program revenues for the City in three categories:

Charges for services
Operating grants and contributions
Capital grants and contributions
Certain eliminations have been made in regards to interfund activities, payables and receivables. All internal balances in the Statement of Net Position have been eliminated except those representing balances between the governmental activities and the business-type activities, which are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities and Changes in Net Position, internal service fund transactions have been eliminated; however, those transactions between governmental and businesstype activities have not been eliminated. The following interfund activities have been eliminated:

Due to/from other funds
Transfers in/out
City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
51 Note 2 – Summary of Significant Accounting Policies (Continued) B. Measurement Focus, Basis of Accounting and Financial Statements Presentation (Continued) Government Fund Financial Statements
Governmental Fund Financial Statements include a Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances for all major governmental funds and nonmajor funds aggregated. An accompanying schedule is presented to reconcile and explain the differences in net position as presented in these statements to the net position presented in the Government-Wide Financial Statements. The City has presented all major funds that met the applicable criteria.

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

Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both “measurable” and “available” to finance expenditures of the current period.

Revenues are recognized as soon as they are both “measurable” and “available”. Revenues are considered to be available when they are collectible within the current period as soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. The primary revenue sources, which have been treated as susceptible to accrual by the City, are property taxes, sales tax, intergovernmental revenues and other taxes. Expenditures are recorded in the accounting period in which the related fund liability is incurred.

The Reconciliation of the Fund Financial Statements to the Government-Wide Financial Statements is provided to explain the differences.

The City reports the following major Governmental Funds:

The General Fund is used to account for all revenues and activities financed by the City, except those required to be accounted for in another fund.

The American Rescue Plan Act Special Revenue Fund is used to account for revenues and activities for American Rescue Plan Act funding which was provided to fund additional relief for individuals and businesses affected by the coronavirus pandemic.

The Housing Admin and Program Capital Projects Fund is used to account for the low- a n d mo d er at e -i n c ome housing activities that were transferred to the City upon dissolution of the former Redevelopment Agency.

The Lakewood Capital Improvements Capital Projects Fund is used to account for the receipt and disbursement of monies used for the construction of major capital facilities which generally require more than one budgetary cycle to complete. These projects are funded by the General Fund, Gas Tax Special Revenue Fund, and federal and state grants.

City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
52 Note 2 – Summary of Significant Accounting Policies (Continued) B. Measurement Focus, Basis of Accounting and Financial Statements Presentation (Continued) Proprietary Fund Financial Statements
Proprietary Fund Financial Statements include a Statement of Net Position, a Statement of Revenues, Expenses and Changes in Fund Net Position, and a Statement of Cash Flows for each major Proprietary Fund.

A separate column representing internal service funds is also presented in these statements. However, internal service balances and activities have been combined with the governmental activities in the Government-Wide Financial Statements. The City’s internal service funds include two individual funds which provide services directly to other City funds. These areas of service include Central Garage and Print Shop.

Proprietary funds are accounted for using the "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the Statement of Net Position. The Statement of Revenues, Expenses and Changes in Fund Net Position presents increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. In these funds, receivables have been recorded as revenue and provisions have been made for uncollectible amounts.

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

The City reports the following major proprietary fund:

The Water Enterprise Fund is used to account for the construction, operation, and maintenance of the City water system.

Fiduciary Fund Financial Statements
Fiduciary fund financial statements include a Statement of Net Position and a Statement of Changes in Fiduciary Net Position. The City’s fiduciary funds represent agency funds and private purpose trust funds. Both custodial funds and the private purpose trust funds are accounted for on the full accrual basis of accounting.

The City reports the following fiduciary fund:

The Private Purpose Trust Fund is used to account for the activities of the Successor Agency to the Lakewood Redevelopment Agency.

City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
53 Note 2 – Summary of Significant Accounting Policies (Continued) C. Cash, Cash Equivalents, and Investments
The City pools its available cash for investment purposes. The City considers pooled cash and investment amounts, with original maturities of three months or less, to be cash equivalents.

Highly liquid market investments with maturities of one year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value. Market value is used as fair value for those securities for which market quotations are readily available. The City reported its investments at fair value and the unrealized gain on investments amounted to $202,285 for the fiscal year ended June 30, 2023.

The statement of cash flows requires presentation of “cash and cash equivalents”. For the purposes of the statement of cash flows, the City considers all proprietary fund pooled cash and investments as “cash and cash equivalents”, as such funds are available to the various funds as needed.

Certain disclosure requirements, if applicable, for Deposits and Investment Risks in the following areas:

Interest Rate Risk
Credit Risk
- Overall
- Custodial Credit Risk
- Concentration of Credit Risk
Foreign Currency Risk
In addition, other disclosures are specified including use of certain methods to present deposits and investments, highly sensitive investments, credit quality at year-end and other disclosures.

D. Restricted Cash in Escrow
Cash and investments in escrow are restricted for capital projects retention payments.

E. Fair Value Measurement
U.S. GAAP defines fair value, establishes a framework for measuring fair value and establishes disclosures about fair value measurement. Investments, unless otherwise specified, recorded at fair value in the financial statements, are categorized based upon the level of judgment associated with the inputs used to measure their fair value.

Levels of inputs are as follows:

The three levels of the fair value measurement hierarchy are described below:

Level 1 - Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date.

Level 2 – Inputs, other than quoted prices included in Level 1, that are observable for the assets or liabilities through corroboration with market data at the measurement date.

Level 3 – Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the assets or liabilities at the measurement date.

City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
54 Note 2 – Summary of Significant Accounting Policies (Continued) F. Receivables
Receivables include such items as taxes, intergovernmental revenues, charges for services, miscellaneous accounts receivable, and interest receivable. No allowance for doubtful accounts has been established, as the City believes all amounts are considered to be collectible in the normal course of business.

G. Inventories
Inventories consist primarily of recreation equipment, maintenance and repair supplies, fuel, and office supplies for the governmental activities. Inventories consist primarily of water pipe, valves, and fittings for the Water Enterprise Fund. Inventories are valued at cost on a weighted average basis.

H. Prepaid Items
Prepaid items are payments made to vendors for services that will benefit periods beyond the fiscal year ended using purchase method.

I. Interfund Transactions
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from other funds” or “advances to/from other funds” (i.e., the current portion of interfund loans). Any residual balances outstanding between the governmental activities and businesstype activities are reported in the Government-Wide Financial Statements as “internal balances”.

J. Land Held for Resale
Land held for resale is recorded at the lower of acquisition cost or net realizable value in the Housing Admin and Program Capital Projects Fund.

K. Leases
Lessee
The City has a policy to recognize a lease liability and a right-to-use asset (lease asset) in the financial statements with an initial, individual value of $5,000 or more with a lease term greater than one year. Variable payments based on future performance or usage of the underlying assets are not included in the measurement of the lease liability.

At the commencement of a lease, the lease liability is measured at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made.

Lease assets are recorded at the amount of the initial measurement of the lease liabilities and modified by any lease payments made to the lessor at or before the commencement of the lease term, less any lease incentives received from the lessor at or before the commencement of the lease term along with any initial direct costs that are ancillary charges necessary to place the lease assets into service. Lease assets are amortized using the straight–line method over the shorter of the lease term or the useful life of the underlying asset, unless the lease contains a purchase option that the State has determined is reasonably certain of being exercised. In this case, the lease asset is amortized over the useful life of the underlying asset.

City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
55 Note 2 – Summary of Significant Accounting Policies (Continued) K. Leases (Continued)
Lessee (Continued)
Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments.

The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases.

The lease term includes the noncancelable period of the lease, plus any option periods that are reasonably certain to be exercised.

Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise. The City monitors changes in circumstances that would require a remeasurement of a lease and will remeasure any lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability.

Lease assets are reported as right-to-use along with other capital assets and lease liabilities are reported on the statement of net position.

Lessor
The City is a lessor for leases of buildings and land and recognizes leases receivable and deferred inflows of resources in the financial statements. Variable payments based on future performance or usage of the underlying asset are not included in the measurement of the lease receivable.

At the commencement of a lease, the lease receivable is measured at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflows of resources are initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflows of resources are recognized as revenue over the life of the lease term in a systematic and rational method.

Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts.

The City uses the average of the LAIF rate and the incremental borrowing rate (IBR) provided by the City’s financial institution for existing leases or the current rate at the time a new lease is executed.

The lease term includes the noncancelable period of the lease plus any option periods that are likely to be exercised.

Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee.

The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable.

City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
56 Note 2 – Summary of Significant Accounting Policies (Continued) L. Capital Assets
Capital assets, which include land, site improvements, buildings and improvements, equipment and infrastructure assets are reported in the applicable governmental or business-type activities in the accompanying governmentwide statement of net position. The City defines infrastructure as the basic physical assets that allow the City to function. The assets include roads, bridges, streetlights, traffic signals and sewer lines. Each major infrastructure system can be divided into subsystems. For example, the street system can be subdivided into pavement, curbs and gutters, sidewalks, medians, streetlights, landscaping and land. These subsystems were not delineated in the basic financial statements. The appropriate operating department maintains information regarding the subsystems.

Capital assets are valued at historical cost or estimated historical cost if actual historical cost was not available.

Donated capital assets are valued at their estimated acquisition value on the date donated. City policy has set the capitalization threshold for reporting capital assets at $5,000 for non-infrastructure assets and $25,000 for infrastructure assets.

Depreciation is recorded on a straight-line basis over estimated useful lives of the assets as follows:

Buildings 50 years
Building improvements 30 years
Water and sewer lines 50 years
Roads 30 years
Vehicles 7 years
Office equipment 7 years
Computer equipment/software 5 years
Other equipment 7 years
For all infrastructure systems, the City has elected to use the basic approach for infrastructure reporting.

M. Subscription-Based Information Technology Arrangements (SBITAs) The City has a policy to recognize a subscription liability and a righttouse subscription asset (subscription asset) in the financial statements. The City recognizes subscription liabilities with an initial, individual value of $5,000 or more with a subscription term greater than one year. Variable payments based on future performance of the City, usage of the underlying IT asset, or number of user seats are not included in the measurement of the subscription liability, rather, those variable payments are recognized as outflows of resources (expenses) in the period the obligation for those payments is incurred.

At the commencement of a SBITA, the City initially measures the subscription liability at the present value of payments expected to be made during the subscription term. Subsequently, the subscription liability is reduced by the principal portion of subscription payments made.

Subscription assets are recorded at the amount of the initial measurement of the subscription liabilities, less any payments made to the SBITA vendor before the commencement of the subscription term, and capitalizable initial implementation cost, less any incentives received from the SBITA vendor at or before the commencement of the subscription term.

Preliminary Project Stage: Outlays are expensed as incurred.

Initial Implementation Stage: Outlays are capitalized as an addition to the subscription asset.

City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
57 Note 2 – Summary of Significant Accounting Policies (Continued) M. Subscription-Based Information Technology Arrangements (SBITAs) (Continued) Operation and Additional Implementation Stage: Outlays are expensed as incurred unless they meet specific capitalization criteria.

Upon adoption, the City elected to exclude the capitalizable outlays associated with the initial implementation stage and the operation and additional implementation stage that were incurred prior to the implementation of this Statement in the measurement of subscription assets as of July 1, 2022.

Subscription assets are reported in capital assets and subscription liabilities are reported with long-term liabilities on the statement of net position. Subscription assets are amortized using the straight-line method over the shorter of the subscription term or the useful life of the underlying IT asset, unless the subscription contains a purchase option that the City has determined is reasonably certain of being exercised. In this case, the subscription asset is amortized over the useful life of the underlying IT asset.

Key estimates and judgments related to SBITA include how the City determines (1) the discount rate it uses to discount the expected subscription payments to present value, (2) subscription term, and (3) subscription payments.

The City uses the interest rate charged by the SBITA vendor as the discount rate. When the interest rate charged by the SBITA vendor is not provided, the District generally uses its estimated incremental borrowing rate as the discount rate for SBITA.

The subscription term includes the noncancellable period of the SBITA. Subscription payments included in the measurement of the subscription liability are composed of fixed payments and purchase option price that the District is reasonably certain to exercise.

N. Compensated Absences
It is the City's policy to permit employees to accumulate earned but unused vacation and sick leave (compensated absences). All vacation pay and eligible sick leave pay is accrued when incurred in the government-wide and proprietary fund financial statements. Compensated absences are reported in governmental funds only if they matured (i.e. unused reimbursable leave still outstanding following an employee's termination from employment).

Typically, the General Fund has been used to liquidate the liability for compensated absences.

Unpaid compensated absences of proprietary funds are recorded as a liability in those funds as the vested benefits to the employees accrue.

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

City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
58 Note 2 – Summary of Significant Accounting Policies (Continued) O. Pensions (Continued)
The following timeframes are used for pension reporting:

CalPERS
Valuation Date June 30, 2021
Measurement Date June 30, 2022
Measurement Period July 1, 2021 to June 30, 2022
PARS
Valuation Date June 30, 2021
Measurement Date June 30, 2023
Measurement Period July 1, 2022 to June 30, 2023
Gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time. The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and inflows of sources related to pensions and are to be recognized in further pension expense. The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized over five years. All other amounts are amortized straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period.

P. Other Postemployment Benefits (“OPEB”) Plan
For the purpose of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s OPEB Plan and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined on the same basis as they are reported by the Plan. For this purpose, the OPEB Plan recognizes benefit payments when due and payable in accordance with the benefit terms. Investments are reported at fair value, except for money market investments, which are reported at amortized cost.

The following timeframes are used for OPEB reporting:

Valuation Date July 1, 2021
Measurement Date June 30, 2023
Measurement Period July 1, 2022 to June 30, 2023
Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time. The first amortized amounts are recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense. The amortization period differs depending on the sources of gain or loss. The difference between projected and actual earnings is amortized on a straight-line basis over five years. All other amounts are amortized on a straight-line basis over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) at the beginning of the measurement period.

City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
59 Note 2 – Summary of Significant Accounting Policies (Continued) Q. Long-Term Debt
Government-Wide Financial Statements
Long-term debt and other financial obligations are reported as liabilities in the statement of net position.

Bond premiums and discounts, as well as gains and losses on refunding, are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable premium or discount. Issuance costs are expensed in the year of issuance.

Fund Financial Statements
The fund financial statements do not present long-term debt but are shown in the Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position.

R. Claims and Judgments
When it is probable that a claim liability has been incurred at year-end and the amount of the loss can be reasonably estimated, the City records the estimated loss, net of any insurance coverage under its self-insurance program. Small dollar claims and judgments are recorded as expenditures when paid.

The City's self-insurance program is administered through California Joint Powers Insurance Authority (the “Authority”), which is described i n Note 14 to the financial statements. The Authority is a public entity risk pool.

Claims losses recorded in the Authority include both current claims and incurred but not reported claims (IBNR).

Deposits to the Authority are recorded by the City as insurance expenditures in the General Fund when paid. These deposits are subject to retrospective adjustment. Favorable claims experience in prior years results in a refund of deposits from the Authority and such refunds, if any, are recorded as prepaid items in the General Fund since they will be used to offset future deposit requirements. Adverse claims experience in prior years results in the payment of additional deposits and such deposits, if any, are recorded as insurance expenditures when incurred.

S. Deferred Outflows of Resources and Deferred Inflows of Resources The Statement and Net Position and the Balance Sheet report separate sections for deferred outflows of resources, and deferred inflows of resources, when applicable.

Deferred Outflows of Resources represent a consumption of net assets that applies to future periods.

Deferred Inflows of Resources represent an acquisition of net assets that applies to future periods.

T. Net Position
In governmental-wide and proprietary fund financial statements, net positions are categorized as follows:

Net Investment in Capital Assets – This component of net position consists of capital assets, net of accumulated depreciation/amortization, reduced by the outstanding balances of debt that are attributable to the acquisition, construction, or improvement of those assets and retention payable.

Restricted – This component of net position consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets.

City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
60 Note 2 – Summary of Significant Accounting Policies (Continued) T. Net Position (Continued)
Unrestricted – This component of net position is the amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that are not included in the determination of net investment in capital assets or the restricted component of net position.

When expenses are incurred for purposes for which both restricted and unrestricted net position are available, the City’s policy is to apply restricted net position first, then unrestricted net position as they are needed.

U. Fund Balances
In governmental fund financial statements, fund balances are categorized as follows:

Nonspendable – Items that cannot be spent because they are not in spendable form, such as prepaid items, inventories, and loans receivable, items that are legally or contractually required to be maintained intact, such as principal of an endowment or revolving loan funds.

Restricted – Restricted fund balances encompass the portion of net fund resources subject to externally enforceable legal restrictions. This includes externally imposed restrictions by creditors, such as through debt covenants, grantors, contributors, laws or regulations of other governments, as well as restrictions imposed by law through constitutional provisions or enabling legislation. The use of proceeds from Housing Admin and Program Capital projects notes receivable is restricted; therefore, it is reported in the restricted fund balance classification.

Committed – Committed fund balances encompass the portion of net fund resources, the use of which is constrained by limitations that the government imposes upon itself at its highest level of decision making, normally the governing body, and that remain binding unless removed in the same manner. The City Council is considered the highest authority for the City. Adoption of a resolution by the City Council is required to commit resources or to rescind the commitment. The amount for economic uncertainties is computed as 20% of the General Fund’s annual operating expenditures. Economic uncertainties are held to offset major or unexpected reductions in revenue. Reduction in revenue equal to or greater than 10% would trigger the use of these funds to support core city services.

Assigned – Assigned fund balances encompass the portion of net fund resources reflecting the government’s intended use of resources. Assignment of resources can be done by the highest level of decision making or by a committee or official designated for that purpose. The City Council has by resolution authorized the City Manager to assign fund balance. The City Council may also assign fund balance as it does when appropriating fund balance to cover a gap between estimated revenue and appropriation in the subsequent year’s appropriated budget.

Unassigned – This amount is for any portion of the fund balances that do not fall into one of the above categories. The General Fund is the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it is not appropriate to report a positive unassigned fund balance amount. However, in governmental fund other than General Fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund.

City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
61 Note 2 – Summary of Significant Accounting Policies (Continued) U. Fund Balances (Continued)
When an expenditure is incurred for purposes for which both restricted and unrestricted fund balances are available, the City’s policy is to apply restricted fund balance first. Further, when the components of unrestricted fund balance can be used for the same purpose, the City uses the unrestricted resources in the following order:
committed, assigned, and unassigned. The description of each fund balance category is listed in the City’s adopted Governmental Fund Balance Policy.

V. Property Taxes
Property taxes are levied on March 1 and are payable in two installments: November 1 and February 1 of each year. Property taxes become delinquent on December 10 and April 10, for the first and second installments, respectively. The lien date is January 1. The County of Los Angeles, California (County) bills and collects property taxes and remits them to the City according to a payment schedule established by the County.

The County is permitted by State law to levy taxes at 1% of full market value (at time of purchase) and can increase the property tax rate no more than 2% per year or the current CPI, whichever is less. The City receives a share of this basic tax levy proportionate to what it received during the years 1980-1981.

Property tax revenue is recognized in the fiscal year for which the taxes have been levied, provided the taxes are received within 60 days after the end of the fiscal year. Property taxes received after this date are not considered available as a resource that can be used to finance the current year operations of the City and, therefore, are not recorded as revenue until collected.

No allowance for doubtful accounts was considered necessary.

W. Use of Estimates
The preparation of basic financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Actual results could differ from these estimates and assumptions.

X. Implementation of New GASB Pronouncements
GASB Statement No. 91 In May 2019, GASB issued Statement No. 91, Conduit Debt Obligations (GASB Statement No. 91), to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. This statement achieves those objectives by clarifying the existing definition of a conduit debt obligation; establishing that a conduit debt obligation is not a liability of the issuer; establishing standards for accounting and financial reporting of additional commitments and voluntary commitments extended by issuers and arrangements associated with conduit debt obligations; and improving required note disclosures. Implementation of this Statement did not have a significant effect on the City’s financial statements for the fiscal year ended June 30, 2023.

City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
62 Note 2 – Summary of Significant Accounting Policies (Continued) X. Implementation of New GASB Pronouncements (Continued) GASB Statement No. 94 In March 2020, GASB issued Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements (GASB Statement No. 94) to improve financial reporting by addressing issues related to public-private and public-public partnership arrangements (PPPs). This Statement also provides guidance for accounting and financial reporting for availability payment arrangements (APAs).

Implementation of this Statement did not have a significant effect on the City’s financial statements for the fiscal year ended June 30, 2023.

GASB Statement No. 96 In May 2020, GASB issued Statement No. 96, Subscription-Based Information Technology Arrangements (GASB Statement No. 96), to provide guidance on the accounting and financial reporting for subscription based information technology arrangements (SBITAs) for government end users (governments). This Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset- -an intangible asset and a corresponding subscription liability: (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. Implementation of this Statement had a significant effect on the City’s financial statements for the fiscal year ended June 30, 2023.

GASB Statement No. 99 - In April 2022, the GASB issued Statement No. 99, Omnibus 2022. The objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing (1) practice issues that have been identified during implementation and application of certain GASB Statements and (2) accounting and financial reporting for financial guarantees. The Statement is effective immediately for the requirements related to extension of the use of LIBOR, accounting for SNAP distributions, disclosures of nonmonetary transactions, pledges of future revenues by pledging governments, clarification of certain provisions in Statement 34, as amended, and terminology updates related to Statement 53 and Statement 63. The Statement is effective for fiscal year years beginning after June 15, 2022 for requirements related to leases, PPPs, and SBITAS. Implementation of this Statement did not have a significant effect on the City’s financial statements for the fiscal year ended June 30, 2023.

Note 3 – Cash and Investments
At June 30, 2023, cash and cash investments are classified in the accompanying financial statements as follows:

Government- Fiduciary
Wide Statement Fund Statement
of Net Position of Net Position Total
Unrestricted assets:

Cash and investments $ 128,289,043 $ 1,083,802 $ 129,372,845 Restricted assets:

Cash in escrow 608,026 - 608,026
Cash held by City 40,205 - 40,205
Total cash and investments $ 128,937,274 $ 1,083,802 $ 130,021,076 City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
63 Note 3 – Cash and Investments (Continued)
At June 30, 2023, cash and investments consisted of the following:

Deposits with financial institution $ 5,112,974
Petty cash 2,700
Investments 124,905,402
Total cash and investments $ 130,021,076
A. Demand Deposits
The carrying amount of the City’s cash deposits were $5,112,974 at June 30, 2023. Bank balances before reconciling items were $6,670,246 at that date, the total amount of which was insured or collateralized with securities held by the pledging financial institutions in the City’s name as discussed below.

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

The market value of pledged securities must equal at least 110% of the City's cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City’s total cash deposits. The City may waive collateral requirements for cash deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation. The City, however, has not waived the collateralization requirements.

B. Investments Authorized by the California Government Code and the City's Investment Policy The table below identifies the investment types that are authorized for the City by the California Government Code (or the City's investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City's investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City's investment policy.

Maximum Maximum
Maximum Percentage Investments in
Authoriz ed Investment Type Maturity Allowed One Issuer United States Treasury Bills, Bonds and Notes 5 Years None None United States Government Sponsored Enterprise Securities 5 Years None None Municipal Obligations 5 Years None None
Negotiable Certificates of Deposit 5 Years 30% None
Placement Service Deposits N/A 30% None
Money Market Funds N/A 20% 10%
Government Pools N/A None None
Local Agency Investment Fund (LAIF) N/A None None
Los Angeles County Pooled Fund N/A None None
Commercial paper 270 days 25% None
Corporate Notes 5 Years 30% None
Supranationals 5 Years 30% None
Asset-Backed Securities 5 Years 20% None
N/A - Not Applicable
City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
64 Note 3 – Cash and Investments (Continued)
C. Investments Authorized by Debt Agreement
Investments of debt proceeds held by bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City's investment policy.

Investments authorized for funds held by bond trustee include, United States Treasury Obligations, United States Government Sponsored Agency Securities, Certificates of Deposits, Commercial Paper, Local Agency Bonds, Banker's Acceptance, Money Market Mutual Funds, Investment Agreements, Repurchase Agreements, Local Agency Investment Fund of the State of California and any other investments permitted in writing by bond insurer. There were no limitations on the maximum amount that can be invested in one issuer, maximum percentage allowed or the maximum maturity of an investment.

D. Risk Disclosures
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.

Information about the sensitivity of the fair values of the City's investments (including investments held by bond trustee) to market interest rate fluctuations is provided by the following table that shows the distribution of the City's investments by maturity:
12 Months 13-24 25-36 37-48 49-60
Investment Type or Less Months Months Months Months Total Local Agency Investment Fund $ 5,337,266 $ - $ - $ - $ - $ 5,337,266 United States treasury notes 234,259 2,462,390 4,939,389 4,611,662 5,063,355 17,311,055 United States government-sponsored
agency securities - 1,909,176 744,768 1,679,693 - 4,333,637 Municipal bonds - 863,271 376,438 102,925 89,411 1,432,045 Supra-national agency notes 548,890 362,728 - - - 911,618 CAMP cash reserve portfolio 81,800,072 - - - - 81,800,072 Corporate medium-term notes 1,597,310 4,106,269 1,884,879 2,978,570 3,212,681 13,779,709 Total $ 89,517,797 $ 9,703,834 $ 7,945,474 $ 9,372,850 $ 8,365,447 $ 124,905,402 RemainingM aturity (In Months)
City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
65 Note 3 – Cash and Investments (Continued)
D. Risk Disclosures (Continued)
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code, the City's investment policy, or debt agreements, and the actual rating, by Standard and Poor's, as of June 30, 2023 for each investment type:

Fair Value M inimum
as of Legal Not
Investment Type June 30, 2023 Rating AAA AA A Rated
Local Agency Investment Fund $ 5,337,266 N/A $ - $ - $ - $ 5,337,266 United States treasury notes 17,311,055 N/A 17,311,055 - - - United States government-sponsored
agency securities 4,333,637 N/A - 4,333,637 - -
Municipal bonds 1,432,045 AA 544,939 887,106 - -
Supra-national agency notes 911,618 AA 911,618 - - -
CAM P cash reserve p ortfolio 81,800,072 A 81,800,072 - - - Corporate medium-term notes 13,779,709 A or A-* 3,547,428 3,007,255 7,225,026 - Total $ 124,905,402 $ 104,115,112 $ 8,227,998 $ 7,225,026 $ 5,337,266 N/A - Not Applicable
*Purchases are limited to securities rated in a rating category of "A" for long- term or "A-" for short term.

Disclosures Relating to Concentration of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code.

No investments in any one issuer represents 5% or more of total City’s investments at June 30, 2023.

Disclosures Relating to Custodial Credit Risk
Custodial credit risk is the risk that, in the event of the failure of the counter party, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. All securities, with the exception of LAIF and other pooled investments, are held by a third-party custodian.

City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
66 Note 3 – Cash and Investments (Continued)
E. Fair Value Measurement Disclosure
At June 30, 2023, investments are reported at fair value. The following table presents the fair value measurement of investments on a recurring basis and the levels within GASB 72 fair value hierarchy in which the fair value measurements fall at June 30, 2023:

Quoted Prices
in Active Markets Significant
for Identical Other Observable
Investment Type Assets (Level 1) Inputs (Level 2) Uncategorized Total Local Agency Investment Fund $ - $ - $ 5,337,266 $ 5,337,266 United States treasury notes 17,311,055 - - 17,311,055
United States government-sponsored
agency securities - 4,333,637 (1 ) - 4,333,637
Municipal bonds 1,432,045 (1 ) 1,432,045
Supra-national agency notes - 911,618 (1 ) - 911,618
CAMP cash reserve portfolio - - 81,800,072 81,800,072
Corporate medium-term notes - 13,779,709 (1 ) - 13,779,709 Total $ 17,311,055 $ 20,457,009 $ 87,137,338 $ 124,905,402 (1) Institutional Bond Quotes - evaluations based on various market and industry inputs Measurement Input
F. Investment in Local Agency Investment Fund (LAIF)
The City is a participant in LAIF which is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The City’s investments in LAIF at June 30, 2023 included a portion of pool funds invested in Structure Notes and Asset-Backed Securities:

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

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

As of June 30, 2023, the City had $5,337,266 invested in LAIF, which had invested 2.78% of the pool investment funds in Structured Notes and Asset-Back Securities. LAIF determines fair value on its investment portfolio based on market quotations for those securities where market quotations are readily available and based on amortized cost or best estimate for those securities where market value is not readily available. LAIF is reported at amortized cost, which approximates fair value.

City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
67 Note 3 – Cash and Investments (Continued)
G. Investment in California Asset Management Program
The City is a voluntary participant in the California Asset Management Program (“CAMP”), a California joint powers authority established in 1989 by the treasurers and finance directors of several California local agencies. CAMP offers its shareholders a California Asset Management Trust (“Trust”) Cash Reserve Portfolio, a short-term money market portfolio. The Trust's activities are directed by a board of trustees, all of whom are employees of California public agencies which are participants in the Trust. The Trust's investments are limited to investments permitted by subdivisions (a) to (o), inclusive, of Section 53601 of the California Government Code. The City's investment in the CAMP cash reserve portfolio is reported at amounts based upon the City's pro-rata share of the portfolio's amortized cost (which approximates fair value) as provided by CAMP. The balance available for withdrawal is based on the accounting records maintained by CAMP, which are recorded on an amortized cost basis. As of June 30, 2023, the City had $81,800,072 invested in CAMP.

Note 4 – Notes Receivable
At June 30, 2023, notes receivable consisted of the following:

Governmental
Activities
Home Improvement Loan Program $ 2,423,622
Total notes receivable $ 2,423,622
The former Redevelopment Agency made deferred loans to senior citizens, the physically handicapped, and low- and moderate-income residents which are not repaid until the title to the property changes. In Fiscal year 1996-97, the former Redevelopment Agency began to use Redevelopment Agency low and moderate housing 20% set-aside funds to provide housing rehabilitation loans to eligible applicants. The rehabilitation loans were made from the former Redevelopment Agency's low and moderate housing 20% set-aside funds. The loans were transferred to the Housing Admin and Program Capital Projects Fund on February 1, 2012, the effective date of the former Redevelopment Agency dissolution, since the City had accepted the role of being the Successor Housing Agency. The balance of these loans totaled $1,920,068 at June 30, 2023.

The City makes deferred loans to senior citizens, the physically handicapped, and low- and moderate-income residents which are not repaid until the title to the property changes. Through fiscal year 1997-98 and 2012-13, the City also used Housing and Community Development Block Grant (CDBG) funds to provide these loans. The rehabilitation loans made from CDBG funds and all HUD cash held for rehabilitation loans are reflected in the CDBG nonmajor special revenue fund. Since Department of Housing and Urban Development has a claim to any funds remaining when the program is terminated, these funds are reported as notes receivable and classified as restricted fund balance. The principal balance outstanding at June 30, 2023 was $503,554.

City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
68 Note 5 – Leases Receivable and Lease-Related Deferred Inflows of Resources The City leases various types of property including land and buildings. Leases receivable consist of agreements with other entities for the “right–to–use” the underlying assets at various locations owned by the City. The remaining terms of the agreements range from 1 to 35 years. The interest rates used calculated the net present value of the lease receivable ranged from 1% to 2.445%.

For the fiscal year ended June 30, 2023, the City recognized $225,125 in lease revenue and $41,218 in interest revenue, and the outstanding net present value of the lease receivable amount is $2,483,720.

A. Governmental Activities
A summary of changes in lease receivable for the governmental activities for the year ended June 30, 2023 is as follows:

Amounts Amounts
Balance Balance due within due in more
July 1, 2022 Addition Reductions June 30, 2023 one year than one year $ 1,679,281 $ - $ (184,516) $ 1,494,765 $ 351,858 $ 1,142,907 At June 30, 2023, the required payments for these leases, including interest, are:

NPV leases Total lease
receivables Interest payments
2024 $ 351,858 $ 15,447 $ 367,305
2025 205,739 12,218 217,957
2026 218,529 9,145 227,674
2027 131,843 6,583 138,426
2028 133,167 5,259 138,426
2029-2033 453,629 7,791 461,420
Total 1,494,765 $ $ 56,443 $ 1,551,208
At June 30, 2023, the amounts reported as deferred inflows of resources related to leases will be recognized as lease revenue as follows:

Year Ending
June 30, Amount
2024 358,480 $
2025 208,506
2026 186,438
2027 131,247
2028 131,247
2029-2033 437,491
Total 1,453,409 $
City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
69 Note 5 – Leases Receivable and Lease-Related Deferred Inflows of Resources (Continued) B. Business-Type Activities
A summary of changes in lease receivable for the business-type activities for the year ended June 30, 2023 is as follows:

Amounts Amounts
Balance Balance due within due in more
July 1, 2022 Addition Reductions June 30, 2023 one year than one year $ 1,029,564 $ - $ (40,609) $ 988,955 $ 45,104 $ 943,851 At June 30, 2023, the required payments for these leases, including interest, are:

NPV leases Total lease
receivables Interest payments
2024 $ 45,104 $ 14,525 $ 59,629
2025 45,785 13,844 59,629
2026 46,477 13,152 59,629
2027 47,179 12,450 59,629
2028 47,891 11,738 59,629
2029 - 2033 233,064 47,705 280,769
2034 - 2038 115,920 34,440 150,360
2039 - 2043 91,170 27,246 118,416
2044 - 2048 98,266 20,150 118,416
2049 - 2053 105,915 12,501 118,416
2054 - 2058 112,184 4,258 116,442
Total $ 988,955 $ 212,009 $ 1,200,964
At June 30, 2023, the amounts reported as deferred inflows of resources related to leases will be recognized as lease revenue as follows:

Year Ending
June 30, Amount
2024 51,147 $
2025 51,147
2026 51,147
2027 51,147
2028 51,147
2029 - 2033 239,167
2034 - 2038 119,503
2039 - 2043 91,199
2044 - 2048 91,199
2049 - 2053 91,199
2054 - 2058 88,210
Total 976,212 $
City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
70 Note 6 – Interfund Transactions
A. Due From and To Other Funds
At June 30, 2023, the City has the following due from and to other funds:

Due To
Othe r Funds
Nonmajor
Due From Other Funds Governmental Funds
Governmental Funds:

General Fund $ 800,668
These interfund balances represent routine short-term cash flow assistance.

B. Transfers In and Out
During the year ended June 30, 2023, the City had the following transfers in and transfers out:

Transfers provided funding for capital projects, capital acquisitions, and debt service.

City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
71 Note 7 – Land Held for Resale
At June 30, 2023, land held for resale consisted of the following:

Location/Address Amount Use of Property
20529 Pioneer Boulevard $ 129,557 Vacant. Future affordable housing development site 20525 Pioneer Boulevard 375,445 Vacant. Future affordable housing development site 11643 207th St 413,650 Affordable Housing
11647 207th St 413,650 Affordable Housing
11644 206th St 526,000 Affordable Housing
20920 Roseton Ave 257,000 Affordable Housing
11649 207th St 320,000 Affordable Housing
11610 207th St 262,500 Vacant Land
11618 207th St 262,500 Vacant Land
Total $ 2,960,302
Note 8 – Receivable from Successor Agency
At June 30, 2023, the receivables from Successor Agency are as follows:

Housing Admin
and Program
Capital
General Fund Projects Fund Total
Inter-Agency Loan $ 10,790,530 $ 2,697,632 $ 13,488,162 10-Year Interfund Loan - 90,491 90,491
5-Year Loan - 1,441,570 1,441,570
Housing Set-Aside Fund - 1,085,310 1,085,310
$ 10,790,530 $ 5,315,003 $ 16,105,533
Upon dissolution of former Lakewood Redevelopment Agency, the amount due by the former Lakewood Redevelopment Agency to the City was $30,950,525. Under AB 1X26, the Successor Agency was only able to list as enforceable obligation the amount of the initial City Loan for the plan area, which was $382,000. This obligation is payable in 10 annual payments of $38,200. The initial City Loan was paid off during the year ended June 30, 2022.

Subsequent legislation, AB1484, allowed interest for the City loans to be recalculated at the LAIF rate over the life of the loan. The outstanding interest on the City loan using the LAIF interest rate calculation is $2,612,099, of which, 80% are allocated to General Fund and 20% are allocated to the City's Housing Admin & Program Capital Projects Fund. Due to the Due Diligence Review called for under AB 1X26, the City reduced the amount receivable to the amount allowable, which resulted in the Successor Agency recognizing an extraordinary gain of $27,956,419 in the statement of changes in fiduciary net position. Pursuant Health and Safety (HSC) Section 34179.7, the Oversight Board approves the Successor Agency’s Finding of Completion on December 10, 2016; therefore, the City’s General Fund loaned to the Successor Agency an additional $9,400,000 to make its payment under Protest for Department of Finance Determination of Other Funds and Accounts Due Diligence Review. Pursuant to HSC Section 34191.6 (2), the Last and Final Recognized Obligation Payment Schedule shall include an interest rate of 4 percent. The City performed interest rate adjustment based on four percent interest rate and reallocated to General Fund and the City’s Housing Admin & Program Capital Projects Fund.

City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
72 Note 8 – Receivable from Successor Agency (Continued) At June 30, 2023, the total principal and interest due to the City General Fund and Housing Admin & Program Capital Projects Fund were in the amount of $10,790,530 and $2,697,632, respectively.

On April 14, 2005, the Agency Board approved a 10-year interfund loan from the Capital Projects Fund to the Debt Service Fund to provide partial funding for the required payment to the County of Los Angeles' Educational Revenue Augmentation Fund for the year ended June 30, 2005. No interest accrues on this loan and annual installments of $22,623 commenced May 10, 2006. The loan balance at June 30, 2023 was $90,491. The loan was transferred to the Successor Agency and the asset side was transferred to the Housing Admin & Program Capital Projects Fund as of the date of the dissolution of the Agency in accordance with Assembly Bill 1X26.

On February 9, 2011, the Agency Board approved a 5-year loan from the Capital Projects Fund to the Debt Service Fund to provide funding for the required payment to the County of Los Angeles' Supplemental Educational Revenue Augmentation Fund. On January 25, 2012, the Agency Board approved a second 5-year loan from the Capital Projects Fund to the Debt Service Fund for similar purposes. No interest accrues on these loans. The total loan balance at June 30, 2023 was $1,441,570. The liability side of this loan was transferred to the Successor Agency and the asset side was transferred to the Housing Admin & Program Capital Projects Fund as of the date of the dissolution of the Agency in accordance with Assembly Bill 1X26.

California Health and Safety Code Section 33334.6 requires that Redevelopment Agencies set aside 20% of the annual tax increment proceeds for the benefit of low- and moderate-income housing. However, an Agency may defer the setaside of 20% if it determines that the tax increment required to be deposited is necessary for the orderly and timely completion of programs approved by the Agency prior to January 1, 1986. The Agency made such a determination to defer the deposit of $1,383,310 of tax increment into the Housing Set-Aside Fund. The Agency has adopted a plan for repayment of this Housing Set-Aside Fund deficit. The Agency did not make a payment towards this deficit since the year ended June 30, 2015, as this deficit was not considered an enforceable obligation under Assembly Bill 1X26, the deficit total remains at $1,085,310; however, under subsequent legislation, AB1484, this deficit is now considered an enforceable obligation and payments from the Successor Agency are allowed to commence in fiscal year 2013-14 to the City's Housing Admin & Program Capital Projects Fund.

City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
73 Note 9 – Capital Assets
A. Governmental Activities
A summary of changes in capital assets of the governmental activities for the year ended June 30, 2023 is as follows:

Balance
July 1, 2022 Balance
(As Restated) Additions Deletions Reclassification June 30, 2023 Capital assets, not be ing depreciated:

Land 17,041,023 $ $ - $ - $ - $ 17,041,023
Construction in progress 43,089,201 6,576,872 (272,851) (6,206,191) 43,187,031 Total capital assets, not be ing depreciated 60,130,224 6,576,872 (272,851) (6,206,191) 60,228,054 Capital assets, be ing depreciated:

Structures/buildings, and improvements 51,463,631 - - - 51,463,631 Equipment 9,417,201 1,520,097 (228,773) - 10,708,525
Infrastructure/street 155,647,685 - - 6,206,191 161,853,876 Total capital asse ts, be ing depreciated 216,528,517 1,520,097 (228,773) 6,206,191 224,026,032 Le ss accumulated depre ciation for:

Structures/buildings, and improvements (29,179,467) (1,109,806) - - (30,289,273) Equipment (8,278,610) (471,962) 228,773 - (8,521,799)
Infrastructure/street (120,044,135) (2,853,732) - - (122,897,867) Total accumulated depreciation (157,502,212) (4,435,500) 228,773 - (161,708,939) Total capital asse ts, be ing depreciated, net 59,026,305 (2,915,403) - 6,206,191 62,317,093 Intangible assets, be ing amortized:

Lease assets 196,967 8,215 - - 205,182
Subscrip tion assets 115,020 110,255 - - 225,275
Total lease asse ts 311,987 118,470 - - 430,457
Less accumulated amortization for:

Lease assets (39,960) (46,153) - - (86,113)
Subscrip tion assets - (64,223) - - (64,223)
Total accumulated amortization (39,960) (110,376) - - (150,336) Total intangible assets,
being amortiz ed, net 272,027 8,094 - - 280,121
Gove rnmental activities capital assets, ne t $ 119,428,556 $ 3,669,563 $ (272,851) $ - $ 122,825,268 Depreciation and amortization expenses were charged to City functions/programs as follows:

General government $ 232,828
Public safety 58,396
Transportation 157,941
Community development 69,316
Culture and leisure 1,035,633
Unallocated depreciation for infrastructure 2,853,732
Internal service funds depreciation charged to programs 27,654 Lease assets amortization 46,153
Subscription assets amortization 64,223
Total depreciation/amortizationexpense - governmental activitie s $ 4,545,876 City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
74 Note 9 – Capital Assets (Continued)
B. Business-Type Activities
A summary of changes in capital assets of the business-type activities for the year ended June 30, 2023 is as follows:

Balance
July 1, 2022 Balance
(As Restated) Additions Deletions Reclassification June 30, 2023 Capital assets, not be ing depreciated:

Land 100,000 $ $ - $ - $ - $ 100,000
Water rights 1,834,586 - - - 1,834,586
Construction in progress 3,499,642 1,273,397 (23,200) - 4,749,839 Total capital asse ts, not being depreciated 5,434,228 1,273,397 (23,200) - 6,684,425 Capital assets, be ing depreciated:

Source of sup p ly 6,878,096 - - - 6,878,096
Pump ing p lant 996,284 - - - 996,284
Water treatment 4,852,172 - - 4,852,172
Transmission/distribution 34,548,038 - - - 34,548,038
General p lant and equipment 21,471,809 68,226 - - 21,540,035 Total capital asse ts, being depreciated 68,746,399 68,226 - - 68,814,625 Le ss accumulated depre ciation for:

Source of sup p ly (3,845,668) (149,345) - - (3,995,013) Pump ing p lant (665,650) (22,475) - - (688,125)
Water treatment (3,956,287) (228,571) - - (4,184,858)
Transmission/distribution (22,834,595) (659,818) - - (23,494,413) General p lant and equipment (8,140,199) (757,497) - - (8,897,696) Total accumulated depreciation (39,442,399) (1,817,706) - - (41,260,105) Total capital asse ts, being depreciated, net 29,304,000 (1,749,480) - - 27,554,520 Intangible assets, be ing amortized:

Subscrip tion assets 561,570 - - - 561,570
Total lease asse ts 561,570 - - - 561,570
Le ss accumulated amortization for:

Subscrip tion assets - (160,448) - - (160,448)
Total accumulated amortization - (160,448) - - (160,448) Total intangible assets,
being amortiz ed, ne t 561,570 (160,448) - - 401,122
Business-type activities capital asse ts, ne t $ 35,299,798 $ (636,531) $ (23,200) $ - $ 34,640,067 Depreciation and amortization expenses was charged to the Water Enterprise Fund in the amount of $1,978,154 for the year ended June 30, 2023.

City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
75 Note 10 – Long-Term Liabilities
A. Governmental Activities
A summary of changes in long-term liabilities for governmental activities for the year ended June 30, 2023 is as follows:

Balance
July 1, 2022 Balance Due within Due in M ore
(As Restated) Additions Deletions June 30, 2023 One Year Than One Year Governmental Activities:

Direct Borrowing:

ADA financing program $ 309,075 $ - $ (154,952) $ 154,123 $ 154,123 $ - Lease p ayable 151,390 8,125 (49,172) 110,343 49,868 60,475 Subscription liabilities 115,020 110,255 (66,023) 159,252 67,915 91,337 Compensated absences 1,861,298 864,152 (831,200) 1,894,250 947,125 947,125 Total governmental activities $ 2,436,783 $ 982,532 $ (1,101,347) $ 2,317,968 $ 1,219,031 $ 1,098,937 ADA Financing Program
In April 2019, the City entered into a lease financing agreement with the California Joint Powers Insurance Authority (the “CJPIA”). Pursuant to the agreement, CJPIA leased the City $750,000 for its participation in the ADA Financing Program which involves a lease and lease-back of certain real property and improvements thereon owned by the City with a value that is not less than the amount of funds to be advanced by CJPIA to the City to finance costs of the ADA Improvements under the ADA Financing Program. The lease is unsecured and bear an interest of 2.69% per annum. The term of the lease is five years from the initial lease disbursement date which occurred on April 1, 2019. Principal payments are due annually commencing April 1, 2020.

The debt service requirements to maturity are as follows:

Year Ending
June 30 Principal Interest Total
2024 $ 154,123 $ 4,278 $ 158,401
Total $ 154,123 $ 4,278 $ 158,401
Lease Payable
The City has entered leases for the right of way leases. The terms of the agreements are 60 months. The calculated interest rate used was 1% at June 30, 2023, the outstanding balance of the leases is $110,343.

Principal and interest payments to maturity at June 30, 2023 are as follows:

Year Ending
June 30, Principal Interest Total
2024 49,868 $ $ 1,051 $ 50,919
2025 51,890 571 52,461
2026 8,585 68 8,653
Total 110,343 $ $ 1,690 $ 112,033
City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
76 Note 10 – Long-Term Liabilities (Continued)
A. Governmental Activities (Continued)
Subscription Liabilities
The City entered into subscription agreements with various vendors for software. The terms of the agreements are ranging from 36 months to 42 months. The calculated interest rates range from 2.445% to 2.796%. .

The future subscription payments are as follows:

Year Ending
June 30, Principal Interest Total
2024 $ 67,915 $ 3,800 $ 71,715
2025 73,260 197 73,457
2026 18,077 129 18,206
Total $ 159,252 $ 4,126 $ 163,378
Compensated Absences
There is no fixed payment schedule for earned but unpaid compensated absences.

B. Business-Type Activities
Summary of changes in long-term liabilities for business-type activities for the year ended June 30, 2023 is as follows:

Balance
July 1, 2022 Balance Due within Due in M ore
(As Restated) Additions Deletions June 30, 2023 One Year Than One Year Business-type Activities:

Direct Borrowing:
2015 Photovolatic system lease
and sublease agreements $ 271,127 $ - $ (271,127) $ - $ - $ - 2017 Master equipment lease/
purchase agreement 6,688,530 - (582,022) 6,106,508 599,792 5,506,716 Subscription liabilities 561,570 - (146,959) 414,611 157,178 257,433 Compensated absences 203,261 759,278 (93,184) 186,004 93,002 93,002 Total business-type activities $ 7,724,488 $ 759,278 $ (1,093,292) $ 6,707,123 $ 849,972 $ 5,857,151 2015 Photovoltaic System Lease and Sublease Agreements
On May 25, 2015, the City entered into the $1,990,000 Photovoltaic System Lease and Sublease Agreements with CLP Holdings Inc. to refund the 2008 Water Revenue Bonds. The current refunding resulted in an economic gain in the amount of $194,632 and saving in debt service payments in the amount of $520,579. The current refunding resulted in no deferred gains or losses as the bond proceeds were sufficient to cover repayment of 2008 Water Revenue Bonds, the interest due, and issuance cost in the 2015 Photovoltaic System Lease and Sublease Agreements.

City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
77 Note 10 – Long-Term Liabilities (Continued)
B. Business-Type Activities (Continued)
2015 Photovoltaic System Lease and Sublease Agreements (Continued) Principal payments on the capital lease are due annually each April 1, commencing April 1, 2011. The bonds were sold through a negotiated sale and bears interest at a rate of 2.54%. Interest payments are payable semi-annually on April 1 and October 1. The City paid off the 2015 Photovoltaic System Lease and Sublease Agreements during the year ended June 30, 2023.
2017 Master Equipment Lease/Purchase Agreement
On May 23, 2017, the City entered the $8,965,667 Master Lease/Purchase Agreement with Fathom Water Management, Inc. for the City’s water operation and replacement of water meter throughout out the City. The contract rate for the lease is 3.030% and the taxable rate is 4.7456%.

Principal and interest payments on the capital lease are due annually each June 13 and December 13, commencing June 13, 2018.

The future annual required lease payments at June 30, 2023, are as follows:

Year Ending
June 30 Principal Interest Total
2024 $ 599,792 $ 198,286 $ 798,078
2025 618,103 162,207 780,310
2026 636,973 143,336 780,309
2027 656,420 123,890 780,310
2028-2032 3,595,220 306,326 3,901,546
Total 6,106,508 $ $ 934,045 $ 7,040,553
Subscription Liabilities
The City entered into subscription agreements with various vendors for software. The term of the agreement is 42 months. The calculated interest rate was 2.445%.

The future subscription payments are as follows:

Year Ending
June 30, Principal Interest Total
2024 157,178 $ $ 8,407 $ 165,585
2025 169,170 4,432 173,602
2026 88,263 631 88,894
Total 414,611 $ $ 13,470 $ 428,081
City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
78 Note 11 – Defined Contribution Plan
The City provides a tax qualified retirement savings plan under Section 401(a) of the Internal Revenue Code to classic employees hired before December 31, 2012. The plan is a defined contribution plan and benefits depend solely on amounts contributed to the plan and investment earnings. The plan is administered by the Public Agency Retirement System (“PARS”) and the City Council has the authority for establishing and amending the plan provisions. There were 85 employees covered by the plan for the year ended June 30, 2023. Employer lump sum contributions are based on an employee's tier of eligibility. Depending on the limits and requirements of the eligible tier, the City will contribute certain amounts equivalent to an employee's eligible unused accrued vacation time, compensatory time, floating holidays, sick leave and administrative leave. Employee contributions are mandatory and are also based on an employee's tier of eligibility. The amount of the mandatory employee contribution will depend on the limits and requirements of the tier which take into consideration an employee's longevity, merit adjustments and prescribed plan percentages. For the year ended June 30, 2023, there were 69 employees covered by the plan and the employer contributions totaled $35,741.

The City also provides a tax qualified retirement savings plan under Section 401(a) of the Internal Revenue Code to all full-time employees. This plan is administered by VOYA. Employer contributions are for pay-offs for administrative leave, compensation pay, gatekeeper pay, and sick leave. Bonus pay (if any) will be contributed into the plan as well.

Longevity pay are contributed into the plan based on the employees’ tier and year of service with the City. The last contribution is the vacation conversion which is the amount of vacation above the employees’ maximum hours. For the year ended June 30, 2023, there were 173 employees covered by the plan and the employer contributions totaled $40,164.

Note 12 – Defined Benefit Pension Plan
Summary of deferred outflows of resources related to pension, net pension liabilities, and deferred inflows of resources related to pension for both governmental activities and business-type activities for the year ended June 30, 2023 are as follows:

Governmental Business-Type
Governmental Activities Activities Activities Total
Deferred outflows of resources:

Pension contributions after measurement date
CalPERS 4,249,841 $ $ 472,205 $ 4,722,046
Change in assumptions:

CalPERS 3,059,233 339,915 3,399,148
PARS 10,820 1,202 12,022
Total change in assumptions 3,070,053 341,117 3,411,170 Difference between expected and actual experience
CalPERS 63,606 7,067 70,673
Difference in projected and actual earnings on
pension investments:

CalPERS 5,497,050 610,783 6,107,833
PARS 827,537 91,949 919,486
Total difference in projected and actual earnings on
pension investments 6,324,587 702,732 7,027,319
Total deferred outflows of resources $ 13,708,087 $ 1,523,121 $ 15,231,208 City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
79 Note 12 – Defined Benefit Pension Plan (Continued)
Governmental Business-Type
Governmental Activities Activities Activities Total
Net pension liabilities:

CalPERS $ 34,686,034 $ 3,854,004 $ 38,540,038
PARS 3,253,146 361,461 3,614,607
Total net pension liabilities $ 37,939,180 $ 4,215,465 $ 42,154,645 Deferred inflows of re sources:

Difference between expected and actual experience
CalPERS $ 1,306,678 $ 145,187 $ 1,451,865
PARS 876,631 97,403 974,034
Total difference between expected
and actual experience 2,183,309 242,590 2,425,899
Total de ferred inflows of resources $ 2,183,309 $ 242,590 $ 2,425,899 Pension Expense:

CalPERS $ 4,613,562 $ 512,619 $ 5,126,181
PARS 270,958 30,106 301,064
Total pension expense $ 4,884,520 $ 542,725 $ 5,427,245 A. CalPERS Plan
General Information about the Pension Plan
Plan Description
The City contributes to the California Public Employees’ Retirement System (“CalPERS”), an agent multiple-employer public employee defined benefit pension plan. CalPERS acts as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by state statute and City ordinance. A full description of the pension plan regarding number of employees covered, benefit provisions, assumptions (for funding, but not accounting purposes), and membership information are listed in the Annual Actuarial Valuation Report. This report and CalPERS’ audited financial statements are publicly available reports that can be obtained at CalPERS’ website under Forms and Publications.

Benefit Provided
CalPERS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. A classic CalPERS member becomes eligible for service retirement upon attainment of age 55 with at least 5 years of credited service. During the year ended June 30, 2013, the California's Public Employees' Pension Reform Act (“PEPRA”) went into effect. Employees hired after January 1, 2013 who are new to the CalPERS system are part of the PEPRA plan. PEPRA members become eligible for service retirement upon attainment of age 62 with at least 5 years of service. The service retirement benefit is a monthly allowance equal to the product of the benefit factor, years of service, and final compensation. The final compensation is the highest 36 or 12 consecutive months' full-time equivalent monthly pay. Retirement benefits for classic employees are calculated as 2% of the average final 12 months compensation. Retirement benefit for PEPRA employees are calculated as 2% of the average final 36 months compensation.

City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
80 Note 12 – Defined Benefit Pension Plan (Continued)
A. CalPERS Plan (Continued)
General Information about the Pension Plan (Continued)
Benefit Provided (Continued)
Participant is eligible for non-industrial disability retirement if becomes disabled and has at least 5 years of credited service. There is no special age requirement. The standard non-industrial disability retirement benefit is a monthly allowance equal to 1.8 percent of final compensation, multiplied by service. Industrial disability benefits are not offered.

An employee's beneficiary may receive the basic death benefit if the employee dies while actively employed. The employee must be actively employed with the City to be eligible for this benefit. An employee's survivor who is eligible for any other pre-retirement death benefit may choose to receive that death benefit instead of this basic death benefit. The basic death benefit is a lump sum in the amount of the employee's accumulated contributions, where interest is currently credited at 7.5 percent per year, plus a lump sum in the amount of one-month salary for each completed year of current service, up to a maximum of six-months salary. For purposes of this benefit, one month's salary is defined as the member's average monthly full-time rate of compensation during the 12 months preceding death.

Upon the death of a retiree, a one-time lump sum payment of $500 will be made to the retiree's designated survivor(s), or to the retiree's estate.

Benefit terms provide for annual cost-of-living adjustments to each employee’s retirement allowance. Beginning the second calendar year after the year of retirement, retirement and survivor allowances will be annually adjusted on a compound basis by 2 percent.

Employees Covered by Benefit Terms
At June 30, 2021, the valuation date, the following employees were covered by the benefit terms:

Active employees 275
Transferred and terminated employees 385
Retired employees and beneficiaries 279
Total 939
Contributions
Section 20814(c) of the California Public Employees’ Retirement Law (“PERL”) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. For the reporting period ended June 30, 2023, the classic active employee contribution rates was 7% of annual pay, the PEPRA active employee contribution rate was

6.75% of annual pay, and the required employer contribution rates were 8.85% of the annual payroll.

City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
81 Note 12 – Defined Benefit Pension Plan (Continued)
A. CalPERS Plan (Continued)
Net Pension Liability
Actuarial Methods and Assumptions Used to Determine Total Pension Liability The June 30, 2021 valuation was rolled forward to determine the June 30, 2022 total pension liability, based on the following actuarial methods and assumptions:

Actuarial Cost Method
Actuarial Assumptions:

Discount Rate
Inflation
Salary Increases
Mortality Rate Table1
Post Retirement Benefit Increase
Derived usingCalPERS’ Membership Data for all Funds.

The lesser of contract COLA or 2.30% until Purchasing Power Protection Allowance floor on purchasing power applies, 2.30% thereafter
Entry Age Normal

6.90%

2.30%
Varies by Entry Age and Service
1 The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study for the period from 2001 to 2019. Pre-retirement and Post-retirement mortality rates include generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from November 2021 that can be found on the CalPERS website.

Change of Assumptions
Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions.

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

In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 Basis points. The expected real rates of return by asset class are as follows:

City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
82 Note 12 – Defined Benefit Pension Plan (Continued)
A. CalPERS Plan (Continued)
Net Pension Liability (Continued)
Long-term Expected Rate of Return (Continued)
Assumed Asset
Asset Class1 Allocation Real Return 2,3
Global Equity - Cap-weighted 30.00% 4.54%
Global Equity - Non-Cap-weighted Private Equity 12.00% 3.84% Private Equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed Securities 5.00% 0.50%
Investment Grade Corporates 10.00% 1.56%
High Yield 5.00% 2.27%
Emerging Market Debt 5.00% 2.48%
Private Debt 5.00% 3.57%
Real Assets 15.00% 3.21%
Leverage -5.00% -0.59%
100.00%
2 An expected inflation of 2.30% used 3 Figures are based on the 2021 Asset Liability Management study. 1 In the CalPERS' Basic Financial Statements, Fixed Income is included in Global Debt Securities; Liquidity is included in Short-term Investments; Inflation Assets are included in both Global Equity Securities and Global Debt Securities.

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

Other Disclosures Related to CalPERS Pension Plans
On July 12, 2021, CalPERS reported a preliminary 21.3% net return on investments for fiscal year 2020-21. Based on the thresholds specified in CalPERS Funding Risk Mitigation policy, the excess return of 14.3% prescribes a reduction in investment volatility that corresponds to a reduction in the discount rate used for funding purposes of

0.20%, from 7.00% to 6.80%. Since CalPERS was in the final stages of the four-year Asset Liability Management (ALM) cycle, the board elected to defer any changes to the asset allocation until the ALM process concluded, and the board could make its final decision on the asset allocation in November 2021.

On November 17, 2021, the board adopted a new strategic asset allocation. The new asset allocation along with the new capital market assumptions, economic assumptions and administrative expense assumption support a discount rate of 6.90% (net of investment expense but without a reduction for administrative expense) for financial reporting purposes. This includes a reduction in the price inflation assumption from 2.50% to 2.30% as recommended in the November 2021 CalPERS Experience Study and Review of Actuarial Assumptions. This study also recommended modifications to retirement rates, termination rates, mortality rates and rates of salary increases that were adopted by the board. These new assumptions were reflected in the GASB 68 accounting valuation reports for the June 30, 2022, measurement date.

City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
83 Note 12 – Defined Benefit Pension Plan (Continued)
A. CalPERS Plan (Continued)
Amortization of Deferred Outflows and Deferred Inflows of Resources Under GASB 68, gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time.

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

The amortization period differs depending on the source of the gain or loss. Five year straight-line amortization is used for net difference between projected and actual earnings on pension plan investments and straight-line amortization over the expected average remaining service lifetime (“EARSL”) of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period is used for all other amounts.

Changes in the Net Pension Liability
The following table shows the changes in net pension liability recognized over the measurement period.

Total Pension Plan Fiduciary Net Net Pension
Liability Position Liability
(a) (b) (c) = (a) - (b)
Balance at June 30, 2021 (Valuation Date) $152,268,034 $135,089,620 $ 17,178,414 Changes Recognized for the Measurement Period:

Service Cost 2,973,011 - 2,973,011
Interest on the total pension liability 10,555,722 - 10,555,722 Changes of Assumptions 4,758,807 4,758,807
Difference between expected and actual experience (1,508,930) - (1,508,930) Contributions from the employer - 4,405,183 (4,405,183) Contributions from employees - 1,227,185 (1,227,185)
Net investment income - (10,131,229) 10,131,229
Benefit payments, including refunds of employee
contributions (8,045,870) (8,045,870) -
Administrative expense (84,153) 84,153
Net changes during July 1, 2021 to June 30, 2022 8,732,740 (12,628,884) 21,361,624 Balance at June 30, 2022 (M easurement Date) $ 161,000,774 $ 122,460,736 $ 38,540,038 Increase (Decrease )
Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the Plan as of the measurement date, calculated using the discount rate of 6.90%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (5.90%) or 1 percentage-point higher (7.90%) than the current rate:

City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
84 Note 12 – Defined Benefit Pension Plan (Continued)
A. CalPERS Plan (Continued)
Changes in the Net Pension Liability (Continued)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate (Continued) Discount Rate - 1% Current Discount Discount Rate + 1%
(5.90%) Rate (6.90%) (7.90%)
$ 59,467,220 $ 38,540,038 $ 21,220,624
Plan's Net Pension Liability/(Asset)
Pension Plan Fiduciary Net Position
Detailed information about the plan’s fiduciary net position is available in the separately issued CalPERS financial report.

Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions For the measurement period ended June 30, 2022, the City incurred a pension expense of $5,126,181.

As of measurement date of June 30, 2022, the City has deferred outflows and deferred inflows of resources related to pensions as follows:

Deferred outflows Deferred inflows
of Re source s of Resources
Contributions made after the measurement date $ 4,722,046 $ - Change in assumptions 3,399,148 -
Difference between expected and actual experience 70,673 (1,451,865) Net difference between projected and actual earnings on pension plan investments 6,107,833 -
Total 14,299,700 $ $ (1,451,865)
The amounts above are net of outflows and inflows recognized in the 2021-2022 measurement period expense.

The expected average remaining service lifetime (“EARSL”) is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired). The EARSL for the plan for the measurement period ending June 30, 2022 is 3.3 years, which was obtained by dividing the total service years of 3,021 (the sum of remaining service lifetimes of the active employees) by 939 (the total number of participants:
active, inactive, and retired). Inactive employees and retirees have remaining service lifetimes equal to 0. Total future service is based on the members’ probability of decrementing due to an event other than receiving a cash refund.

The $4,722,046 reported as deferred outflows of resources related to pension resulting from the City’s contributions subsequent to the measurement date during the year ended June 30, 2023 will be recognized as a reduction of the net pension liability in the year ending June 30, 2024. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in future pension expense as follows:

City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
85 Note 12 – Defined Benefit Pension Plan (Continued)
A. CalPERS Plan (Continued)
Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions (Continued)
Deferred
Outflows/(Inflows)
Year Ending of Resources
June 30 Miscellaneous Plan
2024 1,689,435 $
2025 1,704,370
2026 861,999
2027 3,869,985
2028 -
Thereafter -
Total $ 8,125,789
B. Retirement Enhancement Plan
General Information about the Pension Plan
Plan Description
The City provides a 401(a) defined benefit retirement enhancement plan under the terms of a Memorandum of Understanding (MOU) between the City and its employees. The Plan is part of an agent multiple employer plan administered by the Public Agency Retirement Service (PARS). A separate audited GAAP-basis post-employment benefit plan report is not available for this Plan. Due to PEPRA legislation the Plan is closed to employees hired by the City after December 31, 2012.

Benefit Provided
The benefit is equal to 0.5% of final average compensation for all future years of City service (on or after July 1, 2005) and for 75% of past years of City service (before July 1, 2005). Eligibility for an immediate benefit is defined as reaching age 60, completing two years of full-time continuous Lakewood service, and retiring concurrently from both the City and CalPERS after leaving City employment on or after July 1, 2006. Employees terminating from the City with two years of service and concurrent retirement with CalPERS but prior to age 60 may choose to receive either a deferred retirement benefit to begin at age 60 or a refund of their employee contributions with 3% interest compounded annually. All other terminating employees will receive a refund of their employee contributions with 3% interest.

Final average compensation is equal to the highest year of compensation with the City, including CalPERS employer paid member contributions (salary plus 3.75%), subject to IRC 401(a)(17) limitations. Salary includes longevity pay.

There is no disability benefit or death benefit under this plan.

The normal form of benefit is a life-only annuity. In lieu of a life-only annuity, a participant may elect an actuarial equivalent optional form of payment. The optional form is a joint and survivor annuity.

City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
86 Note 12 – Defined Benefit Pension Plan (Continued)
B. Retirement Enhancement Plan (Continued)
Any benefit in payment status will increase by 2% per annum on each participant’s anniversary date of retirement.

Employees Covered by Benefit Terms
At June 30, 2021, the valuation date, the following employees were covered by the benefit terms:

Active employees 85
Terminated employees 26
Retired employees and beneficiaries 83
Total 194
Contributions
Employees contribute 3.00% of compensation of which the City picks-up 0.13%. The employer contributed $924,177 during the year ended June 30, 2023.

Net Pension Liability
Actuarial Methods and Assumptions Used to Determine Total Pension Liability The June 30, 2021 valuation was rolled forward to determine the June 30, 2023 total pension liability, based on the following actuarial methods and assumptions:

Actuarial Cost Method
Actuarial Assumptions:

Investment Return 5.50%
Inflation 2.50%
Payroll Growth
Cost of Living Adjustment
Withdrawal/Disability
Mortality
Retirement
Maximum Benefits and Salary
Form of payment
Entry Age Normal

2.75%

2.00% compounded annually
Consistent with the Non-Industrial Rates used to value the CalPERS Miscellaneous Public Agency Pension Plans after June 30, 2017.

Pre-retirement: Consistent with the Non-Industrial rates used to value the CalPERS M iscellaneous Public Agency Pension Plans after June 30, 2017.

Post-retirement: Consistent with the Non-Industrial rates used to value the CalPERS M iscellaneous Public Agency Pension Plans after June 30, 2017.

Ranges from 3.65% to 100% at age 75+.

Single Life Annuity
Salary used in the calculation of final average compensation is subject to the limitations of IRC 401(a)(17). The limit is assumed to increase

2.50% per annum.

Change of Assumptions
There were no changes in actuarial assumptions and methods July 1, 2019 valuation to July 1, 2021 valuation.

City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
87 Note 12 – Defined Benefit Pension Plan (Continued)
B. Retirement Enhancement Plan (Continued)
Net Pension Liability (Continued)
Discount Rate
The discount rate used to measure the total pension liability was 5.50 percent. The long-term expected rate of return is determined by adding expected inflation to expected long-term real returns and reflecting expected volatility and correlation. The plan's fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the discount rate for calculating the total pension liability is equal to the long-term expected rate of return.

Long - Term Expected Rate of Return
The assumption for the long-term expected rate of return was selected by the City. Below is a projector of the 30- year average return derived by adding expected inflation to expected long-term real returns and reflecting expected volatility and correlation on the Plan’s current asset allocation.

The table below reflects long-term expected real return adjusted for inflation by asset classes:

Long-Term Long-Term
Expected Expected
Arithmetic Geometric
Real Rate Real Rate
Asset Class Index Allocation of Return of Return
US Cash BAML 3-Mon Tbill 5.05% 0.51% 0.49%
US Core Fixed Income Bloomberg Barclays Aggregate 46.61% 2.07% 1.93% US Equity M arket Russell 3000 37.09% 5.56% 3.90%
Foreign Developed Equity MSCI EAFE NR 5.95% 6.89% 5.07% Emerging Market Equities MSCI EM NR 3.71% 9.58% 6.18%
US REITs FTSE NAREIT Equity REIT 1.59% 6.96% 4.74%
100.00%
Assumed Inflation - Mean 2.32% 2.32%
Assumed Inflation - Standard Deviation 1.42% 1.42%
Portfolio Real Mean Return 3.93% 3.48%
Portfolio Nominal M ean Return 6.25% 5.89%
Portfolio Standard Deviation 8.90%
Long-Term Expected Rate of Return 5.50%
City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
88 Note 12 – Defined Benefit Pension Plan (Continued)
B. Retirement Enhancement Plan (Continued)
Changes in Net Pension Liability
The following table shows the changes in net pension liability recognized over the measurement period.

Total Pension Plan Fiduciary Net Net Pension
Liability Position Liability/(Asset)
(a) (b) (c) = (a) - (b)
Balance at June 30, 2022 $ 23,052,106 $ 18,585,607 $ 4,466,499 Changes Recognized for the Measurement Period:

Service cost 374,578 - 374,578
Interest on the total pension liability 1,263,556 - 1,263,556 Effect of economic/demographic gains or losses - - -
Effect of assumptions changes or inputs - - -
Benefit payments (918,195) (918,195) -
Employer contributions - 924,177 (924,177)
Member contributions - 198,880 (198,880)
Net investment income - 1,439,405 (1,439,405)
Administrative expense - (72,436) 72,436
Net changes during July 1, 2022 to June 30, 2023 719,939 1,571,831 (851,892) Balance at June 30, 2023 (Measurement Date) $ 23,772,045 $ 20,157,438 $ 3,614,607 Increase (Decrease)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the Plan as of the measurement date, calculated using the discount rate of 5.50%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (4.50%) or 1 percentage-point higher (6.50%) than the current rate:
1% Discount 1%
Decrease Rate Increase
(4.50%) (5.50%) (6.50%)
Plan's Net Pension Liability $ 6,675,513 $ 3,614,607 $ 1,053,685 Pension Plan Fiduciary Net Position
Detailed information about the plan’s fiduciary net position is available upon request.

Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions For the measurement period ended June 30, 2023, the City incurred a pension expense of $301,064.

As of measurement date of June 30, 2023, the City has deferred outflows and deferred inflows of resources related to pensions as follows:

City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
89 Note 12 – Defined Benefit Pension Plan (Continued)
B. Retirement Enhancement Plan (Continued)
Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions (Continued)
Deferred outflows Deferred inflows
of Re sources of Resources
Changes of assumptions $ 12,022 $ -
Difference between expected and actual experience - (974,034) Net difference between projected and actual earnings on pension plan investments 919,486 -
Total $ 931,508 $ (974,034)
The amounts above are net of outflows and inflows recognized in the 2022-2023 measurement period expense.

Amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in future pension expense as follows:

Defe rred
Year Ending Outflows/(Inflows)
June 30 of Resources
2024 (261,967) $
2025 (314,070)
2026 616,231
2027 (82,720)
2028 -
Thereafter -
Total $ (42,526)
City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
90 Note 13 – Other Postemployment Benefits (“OPEB”)
At June 30, 2023, net OPEB liability and related deferred inflows of resources are as follows:

Governmental Business-Type
Governmental Activities Activities Activities Total
Deferred outflows of resources:

Change in assumptions $ 426,342 $ 42,166 $ 468,508
Difference between expected and actual experience 225,970 22,349 248,319 Net difference between projected and actual earnings
on OPEB plan investment 1,367,745 135,272 1,503,017
Total deferred outflows of resources $ 2,020,057 $ 199,787 $ 2,219,844 Net OPEB liabilities: $ 774,097 $ 76,559 $ 850,656
Deferred inflows of resources:

Difference between expected and actual experience 1,047,620 103,611 1,151,231 Net difference between projected and actual earnings
on OPEB plan investment 681,352 67,387 748,739
Total deferred inflows of resource s $ 1,728,972 $ 170,998 $ 1,899,970 OPEB Expense (Credit) $ 604,691 $ 59,805 $ 664,496
Plan Description
Plan Administration
The City sponsors healthcare coverage under the California Public Employees Medical and Hospital Care Act ("PEMHCA"), commonly referred to as PERS Health. PEMHCA provides health insurance through a variety of Health Maintenance Organization (HMO) and Preferred Provider Organization (PPO) options.

Benefit Provided
The City offers PEMHCA coverage to its retirees. The City makes the required statutory PEMHCA contribution ($151 and $149 per month in calendar year 2023 and 2022, respectively). Furthermore, the City will make additional contributions towards certain eligible retirees' premiums for a given number of months after retirement equal to the employees' months of service with the City before retirement. This program is known as the "Career Employees Medical Retirement Benefit", and is also available to non-PEMHCA retirees in the form of monthly reimbursements upon proper verification of authorized healthcare costs.

In order to be eligible for the Career Medical Benefit, retirees must have satisfied either of the following age and service requirements:
(1) Later of age 55 and 20 years of service which are immediately prior to retirement with the City of Lakewood as a regular full-time employee; or
(2) Later of age 60 and 15 years of service, at least 10 years of which are immediately prior to retirement with the City of Lakewood as a regular full-time employee.

City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
91 Note 13 – Other Postemployment Benefits (“OPEB”) (Continued) Plan Description (Continued)
Benefit Provided (Continued)
For eligible individuals who retired prior to July 1, 2006, the grandfathered maximum City contribution is $434 per month until age 65 (now obsolete) and $347 per month beginning at age 65. For those retiring between July 1, 2007 and January 1, 2013, the 2019 limits are $504 and $306. For those retiring between January 1, 2014 and January 1, 2015, the 2019 limits are $564 and $306. For those retiring between January 1, 2015 and January 1, 2016, the 2019 pre-65 limit is $542 per month. For those retiring between January 1, 2016 and January 1, 2017, the 2019 pre65 limit is $555 per month. For those retiring between January 1, 2017 and January 1, 2018, the 2019 pre-65 limit is $574 per month. For those retiring between January 1, 2018 and January 1, 2019, the 2019 pre-65 limit is $643. For retirements during 2019, the limits are $619 and $324, respectively (the retiree-only premiums under PEMHCA for Kaiser - Los Angeles Area).

Beginning January 1, 2013, benefits in pay status are indexed (increased) by the lesser of 2% per year or the increase in the Kaiser PEMHCA premium for the Los Angeles Area. Retirees who retire prior to age 65 have as a base year for post-65 payments the PEMHCA Kaiser Senior Advantage premium for the year in which they reach age 65 (rather than the year of retirement).

Dental, vision, spousal and dependent child coverage may be provided if the retiree pays the required additional premium(s) over and above the applicable City maximum contribution. In addition, the City pays a 0.27%-of-premium administrative fee to PEMHCA for each retiree.

Employees Covered by Benefit Terms
At July 1, 2021, the date of the latest actuarial valuation, membership in the plan consisted of the following:

Inactive plan members or beneficiaries currently
receiving benefit payments 89
Active plan members 178
Total 267
Contributions
The City’s required contribution is based on projected pay-as-you-go financing requirements. The City has an irrevocable OPEB trust with the Public Agency Retirement Services (PARS). Contributions to the benefits paid outside of trust and implicit benefits paid were $ 470,349 and $192,592, respectively.

Net OPEB Liability
The City’s net OPEB liability was measured as of June 30, 2023 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of July 1, 2021. Standard actuarial update procedures were used to project/discount from valuation to measurement dates.

City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
92 Note 13 – Other Postemployment Benefits (“OPEB”) (Continued) Net OPEB Liability (Continued)
Actuarial Assumptions
The total OPEB liability in the July 1, 2021 was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified:

Inflation rate
Salary increases 3.00%
Discount rate
Investment rate of return
Healthcare cost trend rate

2.50%

6.00%

6.00%, net of OPEB plan investment expense

5.20 percent for 2022 through 2034; 5.00 percent for 2035 through 2049; 4.50 percent for 2050 through 2064; 4.00 percent for 2065 and later years
Mortality rates were based on the most recent CalPERS experience study. The actuarial assumptions used in the July 1, 2022 valuation were based on an actuarial experience study and a review of plan experience during the period July 1, 2021 to June 30, 2022.

Discount Rate
GASB 75 requires the use of a discount rate that considers the availability of the OPEB plan’s fiduciary net position associated with the OPEB of current active and inactive employees and the investment horizon of those resources.

OPEB plans with irrevocable trust accounts can utilize a discount rate equal to the long-term expected rate of return to the extent that the OPEB plan’s fiduciary net position is projected to be sufficient to make projected benefit payments and the OPEB plan assets are expected to be invested using a strategy to achieve that return.

To determine if the OPEB plan assets are sufficient, a calculation of the projected fiduciary net position and the amount of projected benefit payments is compared in each period. When OPEB plan assets are determined to not be sufficient, a blended rate is calculated.

For OPEB plans that do not have irrevocable trust accounts, GASB 75 requires a discount rate equal to the yield or index rate for 20-year, tax-exempt general obligation municipal bonds with an average rating of AA/Aa or higher.

The City has an irrevocable trust account for prefunding OPEB liabilities. Plan assets are expected to be sufficient. The discount rate used to measure the total OPEB liability is equal to the long-term expected rate of return.

The long-term expected rate of return on OPEB plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The table below provides the long-term expected real rates of return by asset class:

Assumed Asset Real Rate of
Asset Class Allocation Return
Board U.S. Equity 50.00% 4.40%
U.S. Fixed 50.00% 1.50%
City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
93 Note 13 – Other Postemployment Benefits (“OPEB”) (Continued) Net OPEB Liability (Continued)
Investment Rate of Return
The City’s policy regarding the allocation of the plan’s invested assets is established and may be amended by City management. The current investment selection is the PARS Moderate HighMark PLUS. The dual goals of the Moderate Strategy are growth of principal and income. The asset allocation ranges for this objective are listed below:

Stated
Asset Class Range
Cash 0 - 20%
Fixed Income 40% - 60%
Equity 40% - 60%
For the year ended on the measurement date, the annual money-weighted rate of return on investments, net of investment expense, was 7.62 percent. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts invested.

Change in the Net OPEB Liability
Total OPEB Plan Fiduciary Net Net OPEB
Liability Position Liability/(Asset)
(a) (b) (c) = (a) - (b)
Balance at July 1, 2022 $ 11,949,311 $ 10,802,274 $ 1,147,037 Changes Recognized for the Measurement Period:

Service cost 407,536 - 407,536
Interest on the total OPEB liability 721,812 - 721,812
Changes of benefit terms - - -
Changes of assumptions - - -
Difference between expected and actual experience - - - Contributions from the employer - 662,941 (662,941)
Contributions from employees - 820,756 (820,756)
Net investment income - - -
Benefit payments, including refunds of employee
contributions (662,941) (662,941) -
Administrative expense - (57,968) 57,968
Net Changes during July 1, 2022 to June 30, 2023 466,407 762,788 (296,381) Balance at June 30, 2023 (Measurement Date) $ 12,415,718 $ 11,565,062 $ 850,656 Increase (Decrease)
City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
94 Note 13 – Other Postemployment Benefits (“OPEB”) (Continued) Change in the Net OPEB Liability (Continued)
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following presents the net OPEB liability of the City, as well as what the City’s net OPEB liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage-point higher than the current discount rate:

Discount Rate - 1% Current Discount Discount Rate + 1%
(5.00%) Rate (6.00%) (7.00%)
$ 2,509,074 $ 850,656 $ (538,524)
Plan's Net OPEB Liability/(Asse t)
Sensitivity of the Net OPEB Liability to Changes in the Healthcare Cost Trend Rates The following presents the net OPEB liability of the City, as well as what the City’s net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1-percentagepoint higher than the current healthcare cost trend rates:

Healthcare Cost
1% De crease Trend Rates Trend Rate + 1%
(4.20% current,

3.00% ultimate)
(5.20% current,

4.00% ultimate)
(6.20 current,

5.00% ultimate)
$ (619,247) $ 850,656 $ 2,634,635
Plan's Net OPEB Liability/(Asset)
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended June 30, 2023, the City' recognized OPEB expense of $664,496. At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred outflows Deferred inflows
of Re source s of Resources
Changes of assumptions $ 468,508 $ -
Difference between expected and actual experience 248,319 (1,151,231) Net difference between projected and actual earnings on pension plan investments 1,503,017 (748,739)
Total $ 2,219,844 $ (1,899,970)
The difference between projected OPEB plan investment earnings and actual earnings is amortized over a five-year period. The remaining gains and losses are amortized over the expected average service life.

City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
95 Note 13 – Other Postemployment Benefits (“OPEB”) (Continued) OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB (Continued)
Amounts reported as deferred inflows of resources related to OPEB will be recognized as future OPEB expense as follows:

Deferred
Outflows/(Inflows)
Year Ending of Resources
June 30 OPEB Plan
2024 192,615 $
2025 141,434
2026 469,940
2027 (84,212)
2028 (108,082)
Thereafter (291,821)
Total $ 319,874
Note 14 – Deferred Compensation Plan
The City has made available to its employees two deferred compensation plans, whereby employees authorize the City to withhold funds from salary to be invested in the Voya Financial RetireFlex-MF Deferred Compensation Plan. Funds may be withdrawn by participants upon termination of employment or retirement. The City makes no contributions under the plans. The City withholds employee contributions from employee's payroll checks and transmits these monies to the plan providers on a bi-weekly basis. The City makes distributions from the plans based solely upon authorizations from the plan administrator.

Pursuant to changes in Internal Revenue Code (“IRC”) Section 457 on November 26, 1997, the City formally established a plan-level trust in which all assets and income of the 457 plan were placed. The assets, all property and rights purchased with such amount, and all income attributable to such amounts, property, or rights are held in trust for the exclusive benefit of the participants and their beneficiaries. These assets are no longer the property of the City and, as such, are no longer subject to the claims of the City's general creditors. As a result, the assets of the 457 plan are no longer reflected in the financial statements. The City had minimal involvement in the administration of the 457 plan and, therefore, lacks the fiduciary accountability that would have required the 457 plan to be recorded.

Plan assets are held in trust for the exclusive benefit of the participants and their beneficiaries; and therefore, are not included in the accompanying financial statements.

City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
96 Note 15 – Liabilities, Property, and Workers’ Compensation Protection A. Description of Self-Insurance Pool Pursuant to Joint Powers Agreement The City of Lakewood, California is a member of the California Joint Powers Insurance Authority (“Authority”).

The Authority is composed of 124 California public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq. The purpose of the Authority is to arrange and administer programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group purchased insurance for property and other lines of coverage. The California JPIA began covering claims of its members in 1978. Each member government has an elected official as its representative on the Board of Directors. The Board operates through a nine-member Executive Committee.

B. Primary Self-Insurance Programs of the Authority
Each member pays an annual contribution at the beginning of the coverage period. A retrospective adjustment is then conducted annually thereafter, for coverage years 2012-13 and prior. Coverage years 2013-14 and forward are not subject to routine annual retrospective adjustment. The total funding requirement for primary self-insurance programs is based on an actuarial analysis. Costs are allocated to individual agencies based on payroll and claims history, relative to other members of the risk-sharing pool.

Primary Liability Program
Claims are pooled separately between police and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $100,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $100,000 to $500,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $500,000 to $50 million, are distributed based on the outcome of cost allocation within the first and second loss layers.

The overall coverage limit for each member, including all layers of coverage, is $50 million per occurrence.

Subsidence losses also have a $50 million per occurrence limit. The coverage structure is composed of a combination of pooled self-insurance, reinsurance, and excess insurance. Additional information concerning the coverage structure is available on the Authority’s website: https://cjpia.org/coverage/risk-sharing-pools/.

Primary Workers' Compensation Program
Claims are pooled separately between public safety (police and fire) and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $75,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $75,000 to $200,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $200,000 to statutory limits are distributed based on the outcome of cost allocation within the first and second loss layers.

City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
97 Note 15 – Liabilities, Property, and Workers’ Compensation Protection (Continued) B. Self-Insurance Programs of the Insurance Authority (Continued) Primary Workers' Compensation Program (Continued)
For 2022-23 the Authority’s pooled retention is $1 million per occurrence, with reinsurance to statutory limits under California Workers’ Compensation Law. Employer’s Liability losses are pooled among members to $1 million. Coverage from $1 million to $5 million is purchased through reinsurance policies, and Employer’s Liability losses from $5 million to $10 million are pooled among members.

C. Purchased Insurance
Pollution Legal Liability Insurance
The City of Lakewood participates in the pollution legal liability insurance program which is available through the Authority. The policy covers sudden and gradual pollution of scheduled property, streets, and storm drains owned by the City of Lakewood. Coverage is on a claims-made basis. There is a $250,000 deductible. The Authority has an aggregate limit of $20 million.

Property Insurance
The City of Lakewood participates in the all-risk property protection program of the Authority. This insurance protection is underwritten by several insurance companies. City of Lakewood property is currently insured according to a schedule of covered property submitted by the City of Lakewood to the Authority. City of Lakewood property currently has all-risk property insurance protection in the amount of $102,560,319. There is a $10,000 deductible per occurrence except for non-emergency vehicle insurance which has a $2,500 deductible.

Crime Insurance
The City of Lakewood purchases crime insurance coverage in the amount of $3,000,000 with a $2,500 deductible.

The fidelity coverage is provided through the Authority.

Contract with Los Angeles County Sheriff’s Department
The City contracts for policing services through the Los Angeles County Sheriff’s Department. As part of the agreement for services, the City is required to pay an additional 4% premium over the contract price to the Sheriff's Department for liability insurance. The term of this agreement is from July 1, 2019 through June 30, 2024 and agreement may be renewed or extended for successive years. The total premium paid during the fiscal year ended June 30, 2023 was $1,033,557.

D. Adequacy of Protection
During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or insured liability coverage in 2022-2023.

Complete financial statements for the Authority may be obtained at their administrative office located at 8081 Moody Street, La Palma, California 90623.

City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
98 Note 16 – Commitments and Contingencies
A. Lawsuits
Numerous claims and suits have been filed against the City in the normal course of business. Based upon information received from the City Attorney and the self-insurance administrator, the estimated liability under such claims would be adequately covered by self-insurance designations and insurance coverage.

B. Lighting Maintenance Contract with City Light and Power Lakewood, Inc.

In November 1997, the City entered into a lighting maintenance contract with City Light and Power Lakewood, Inc. The contract requires the City to pay a basic annual rent of $544,250, with a portion of the basic rent adjusted annually using the current consumer price index. During the year ended June 30, 2023, the City paid $63,688 per month for the maintenance contract. The contract expires in April 2023.

C. Agreement for Allocation of Tax Increment Revenue
On June 13, 1989, the former Lakewood Redevelopment Agency (the “Agency”) entered into an agreement for the allocation of tax increment revenue generated from Project Area No. 2. As part of the agreement, the Agency is required to reimburse the Consolidated Fire Protection District of Los Angeles County 17.26% of tax increment revenues and Los Angeles County 54.59% of tax increment revenue. The Los Angeles County portion may be deferred in any year under certain terms of the agreement until total tax increment of the Agency reaches a cumulative total of $60,000,000. After the total reaches $60,000,000, the Agency is required to reimburse Los Angeles County 100% of tax increment revenue (net of the allocation to the Consolidated Fire Protection District of Los Angeles County) until the deferred sums have been repaid. Interest on any deferral amounts was prepaid in a lump sum of $842,000 in fiscal year 1990-91. At June 30, 2023, the Agency's outstanding deferral balance is $756,943.

D. Construction Commitments
The City had outstanding construction commitments in the amount of $3,807,232 as of June 30, 2023 as follows:

Governmental Funds:

General Fund $ 1,780,579
Lakewood Capital Improvements Capital Projects Fund 666,058 Nonmajor Governmental Fund 728,895
Proprietary Fund:

Water Enterprise Fund 631,700
Total $ 3,807,232
City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
99 Note 17 – Individual Fund Disclosures
Funds with a deficit fund balance/net position at June 30, 2023, are as follows:

Governmental Funds:

Prop A Recreation Special Revenue Fund $ (99,064)
SB2 Housing Grant Special Revenue Fund (28,483)
CA Natural Resources Agency Grant Special Revenue Fund (49,539) Open Space (7,605)
Fiduciary Fund:

Successor Agency Private Purpose Trust Fund (15,021,731) The Governmental Funds’ deficits are primarily the result of the unavailability of certain revenues at June 30, 2023 and will be eliminated upon receipts of the grant reimbursements in the following fiscal year. The Successor Agency deficit is due to the Advance from the City and will be recovered by future by Recognized Obligation Payment Schedule.

Note 18 – Net Investment in Capital Assets
The following is the calculation of net investment in capital assets at June 30, 2023:

Governmental Business-Type
Activitie s Activities
Capital assets, net of accumulated depreciation/amortization $ 122,825,268 $ 34,640,067 Less: outstanding principal on capital related debts (423,718) (6,521,119) Less: retention payable (579,560) (44,281)
Less: capital assets related accounts payable (745,964) (604,260) Net investment in capital assets $ 121,076,026 $ 27,470,407 Note 19 – Agreement with Paramount Petroleum
In 1992 the City and Paramount Petroleum Corporation entered into an agreement that allowed Paramount Petroleum to maintain their existing petroleum storage facility (tank farm) on a 4.24-acre site located at 2920 56th Way in Lakewood. The tank farm consists of two 55,000-barrel storage tanks and two 5,000 barrel water tanks and a petroleum pumping station. The agreement established a 15-year amortization period after which time the tanks were to be removed from the site.

Because of changes in the oil industry and the nature of development surrounding the tank farm, Ordinance No. 2005- 14 amended the provisions of the Lakewood Municipal Code 9392.B.1 (g) allowing Paramount Petroleum to operate an additional 10 years, ending in January 2017. The agreement also allowed for automatic two-year extensions, with the current extension valid through December 2024.
100

REQUIRED SUPPLEMENTARY INFORMATION
(UNAUDITED)
101
102
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Taxes 42,195,000 $ $ 44,419,000 $ 45,154,227 $ 735,227
Licenses and permits 1,326,000 2,053,600 2,214,773 161,173 Fines and forfeitures 757,100 662,100 682,411 20,311
Investment income, rents and concession 619,350 1,473,165 3,054,219 1,581,054 Intergovernmental revenues 11,074,000 11,390,800 11,498,072 107,272 Current service charges 8,234,990 8,914,267 9,658,905 744,638 Other 1,088,500 3,183,712 3,153,184 (30,528)
Total revenues 65,294,940 72,096,644 75,415,791 3,319,147 EXPENDITURES:

Current:

General government 11,517,467 11,837,175 11,216,593 620,582 Public safety 18,023,582 18,798,276 17,717,031 1,081,245 Transportation 3,791,925 4,053,773 3,774,297 279,476
Community development 6,642,526 6,850,725 6,138,038 712,687 Health and sanitation 6,577,835 6,550,640 6,442,584 108,056 Culture and leisure 15,037,475 14,588,590 13,715,968 872,622 Capital outlay:

General government 140,000 726,439 443,096 283,343
Public safety 112,000 347,870 217,398 130,472
Transportation 125,000 803,371 177,240 626,131
Community development 60,000 100 18,710 (18,610)
Culture and leisure 286,250 7,340,372 1,482,332 5,858,040 Debt service:

Principal retirement 151,068 151,068 270,147 (119,079)
Interest and fiscal charges 12,333 12,333 12,333 -
Total expenditures 62,477,461 72,060,732 61,625,767 10,434,965

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 2,817,479 35,912 13,790,024 13,754,112 OTHER FINANCING SOURCES (USES):

Transfers in 4,320,800 4,320,800 4,302,783 (18,017)
Transfers out - - (1,188,268) (1,188,268)
Issuance of debt - - 118,380 118,380
Procees from sale of properties 1,000 25,000 20,910 (4,090) Total other financing sources (use) 4,321,800 4,345,800 3,253,805 (1,091,995) NET CHANGES IN FUND BALANCE $ 7,139,279 $ 4,381,712 17,043,829 $ 12,662,117 FUND BALANCE:

Beginning of Year 64,368,818
End of Year $ 81,412,647
Required Supplementary Information (Unaudited)
Budgetary Comparison Schedule - General Fund
City of Lakewood
For the Year Ended June 30, 2023
103
Original Final Variance with
Budget Budget Actual Final Budget
Intergovernmental revenues $ 9,656,429 $ 9,656,429 $ 1,527,254 $ (8,129,175) Total revenues 9,656,429 9,656,429 1,527,254 (8,129,175) EXPENDITURES:

Current:

General government 157,295 233,195 202,802 30,393
Public safety - 158,023 725,174 (567,151)
Transportation - 62,316 62,316 -
Community development 1,000,000 1,035,495 133,688 901,807 Culture and leisure 28,296 318,658 318,375 283
Capital outlay:

General government 6,662,783 5,789,472 - 5,789,472
Public safety 55,010 133,448 75,685 57,763
Transportation - 79,527 - 79,527
Community development 1,885,000 1,686,133 - 1,686,133
Culture and leisure 8,704 9,214 9,214 -
Total expenditures 9,797,088 9,505,481 1,527,254 7,978,227 NET CHANGES IN FUND BALANCE $ (140,659) $ 150,948 - $ (150,948) FUND BALANCE:

Beginning of Year -
End of Year $ -
City of Lakewood
Required Supplementary Information (Unaudited)
Budgetary Comparison Schedule - American Rescue Plan Act Special Revenue Fund For the Year Ended June 30, 2023
104

1. The annual budget adopted by the City Council provides for the general operation of the City. It includes proposed expenditures and the means of financing them.

2. The City Council approves total budgeted appropriations and any amendments to appropriations throughout the year. This “appropriated budget" covers substantially all City expenditures, with the exception of debt service on bond issues and capital improvement projects, which expenditures constitute legally-authorized “nonappropriated budget". There were no significant non-budgeted financial activities. Actual expenditures may not exceed budgeted appropriations at the fund level. The City Manager is authorized to make transfers of budget appropriations between classifications and activities within a fund.

3. Formal budgetary integration is employed as a management control device. Commitments for materials and services, such as purchase orders and contracts, are recorded during the year as encumbrances to assist in controlling expenditures. Appropriations, which are encumbered at year end, are added to the following year’s budgeted appropriations. However, encumbrances at year end are reported as assigned fund balance.

4. Budgets for the General and Special Revenue Funds are adopted on a basis substantially consistent with accounting principles generally accepted in the United States of America. Accordingly, actual revenues and expenditures can be compared with related budgeted amounts without any significant reconciling items. No budgetary comparisons are presented for Proprietary Funds as the City is not legally required to adopt a budget for these types of funds.

5. Capital project budgets are long term in nature and, accordingly, no budgetary comparisons are reflected in the accompanying financial statements.

6. Under Article XIIIB of the California Constitution (the Gann Spending Limitation Initiative), the City is restricted as to the amount of annual appropriations from the proceeds of taxes, and if proceeds of taxes exceed allowed appropriations, the excess must either be refunded to the State Controller, returned to the taxpayers through revised tax rates or revised fee schedules, or an excess in one year may be offset against a deficit in the following year. For the fiscal year ended June 30, 2023, based on calculations by City Management, proceeds of taxes did not exceed related appropriations. Further, Section 5 of Article XIIIB allows the City to designate a portion of fund balance for general contingencies, to be used in future years without limitation. In fiscal year 2010, the City Council passed a resolution setting aside all unappropriated fund balances in the General Fund as contingency funds.

The City follows these procedures in establishing the budgetary data reflected in the financial statements:

City of Lakewood
Required Supplementary Information (Unaudited)
Notes to the Budgetary Comparison Schedule
For the Year Ended June 30, 2023
Budget and Budgetary Accounting
105
Measurement period 2013-14 2014-15 2015-16 2016-17 2017-18 Total pension liability
Service cost $ 2,144,455 $ 2,028,208 $ 2,109,082 $ 2,355,437 $ 2,527,432 Interest 8,019,215 8,236,636 8,472,508 8,766,071 9,163,433 Changes of benefit terms - - - - -
Changes of assumptions - (1,943,097) - 7,049,669 (603,969) Differences between expected and actual experience - (2,731,071) (2,102,094) (581,254) 738,883 Benefit payments, including
refunds of employee contributions (4,389,897) (4,981,710) (5,258,099) (5,386,901) (6,182,947) Net change in total pension liability 5,773,773 608,966 3,221,397 12,203,022 5,642,832 Total pension liability - beginning 108,045,583 113,819,356 114,428,322 117,649,719 129,852,741 Total pension liability - ending (a) $ 113,819,356 $ 114,428,322 $ 117,649,719 $ 129,852,741 $ 135,495,573 Pension fiduciary net position
Contributions - employer $ 1,873,372 $ 1,871,751 $ 2,717,060 $ 2,344,596 $ 2,573,441 Contributions - employee 1,012,408 939,852 1,051,966 1,098,583 1,161,949 Net investment income 14,100,175 2,111,030 554,532 10,269,191 8,596,094 Benefit payments, including
refunds of employee contributions (4,389,897) (4,981,710) (5,258,099) (5,386,901) (6,182,947) Net plan to plan resource movement - - - - (248)
Administrative expense - (105,557) (57,099) (136,863) (157,210) Other Miscellaneous Income/(Expense)
2 - - - - (298,545)
Net change in plan fiduciary net position 12,596,058 (164,634) (991,640) 8,188,606 5,692,534 Plan fiduciary net position - beginning 81,258,902 93,854,960 93,690,326 92,698,686 100,887,292 Plan fiduciary net position - ending (b)
3 $ 93,854,960 $ 93,690,326 $ 92,698,686 $ 100,887,292 $ 106,579,826 Plan net pension liability - ending (a) - (b) $ 19,964,396 $ 20,737,996 $ 24,951,033 $ 28,965,449 $ 28,915,747 Plan fiduciary net position as a percentage 82.46% 81.88% 78.79% 77.69% 78.66% of the total pension liability
$ 15,265,197 $ 15,213,079 $ 16,033,770 $ 16,036,475 $ 16,673,912 Plan net pension liability
as a percentage of covered payroll 130.78% 136.32% 155.62% 180.62% 173.42% 3 Includes any beginning of year adjustment.

Notes to Schedule:

Changes of Benefit Terms: The figures above generally include any liability impact that may have resulted from voluntary benefit changes that occurre d on or before the Measurement Date. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the Valuation Date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary. 1 Historical information is presented only for measurement periods after GASB 68 implementation in 2013-14. Additional years of information will be displayed as it becomes available.
2 During Fiscal Year 2017-18, as a result of Governmental Accounting Standards Board Statement (GASB) No. 75, Accounting and Financial Reporting for Postemployment Benefit Plans Other than Pensions (GASB 75), CalPERS reported its proportionate share of activity related to postemployment benefits for participation in the State of California’s agent OPEB plan. Accordingly, CalPERS recorded a one-time expense as a result of the adoption of GASB 75. Additionally, CalPERS employees participate in various State of California agent pension plans and during Fiscal Year 2017-18, CalPERS recorded a correction to previously reported financial statements to properly reflect its proportionate share of activity related to pensions in accordance with GASB Statement No. 68, Accounting and Financial Reporting for Pensions (GASB 68). 4 Includes one year’s payroll growth using 2.80% payroll growth assumption for fiscal year ended June 30, 2022; 2.75% payroll growth assumption for fiscal years ended June 30, 2018-21;3.00% payroll growth assumption for fiscal years ended June 30, 2014-17.

California Public Employees' Retirement System Defined Benefit Plan Last Ten Fiscal Years
Covered payroll
4 For the Year Ended June 30, 2023
City of Lakewood
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios 106
Measurement period 2018-19 2019-20 2020-21 2021-221
Total pension liability
Service cost $ 2,573,466 $ 2,616,888 $ 2,546,101 $ 2,973,011 Interest 9,686,135 10,069,685 10,347,723 10,555,722
Changes of benefit terms - - - -
Changes of assumptions - - - 4,758,807
Differences between expected and actual experience 2,203,972 335,690 (949,532) (1,508,930) Benefit payments, including
refunds of employee contributions (7,031,685) (7,473,686) (8,152,296) (8,045,870) Net change in total pension liability 7,431,888 5,548,577 3,791,996 8,732,740 Total pension liability - beginning 135,495,573 142,927,461 148,476,038 152,268,034 Total pension liability - ending (a) $ 142,927,461 $ 148,476,038 $ 152,268,034 $ 161,000,774 Pension fiduciary net position
Contributions - employer $ 2,938,083 $ 3,476,806 $ 3,879,340 $ 4,405,183 Contributions - employee 1,045,867 1,304,659 1,183,929 1,227,185 Net investment income 6,920,916 5,455,014 25,307,127 (10,131,229) Benefit payments, including
refunds of employee contributions (7,031,685) (7,473,686) (8,152,296) (8,045,870) Net plan to plan resource movement - - - -
Administrative expense (76,058) (155,605) (112,865) (84,153) Other Miscellaneous Income/(Expense)
2 248 - - -
Net change in plan fiduciary net position 3,797,371 2,607,188 22,105,235 (12,628,884) Plan fiduciary net position - beginning 106,579,826 110,377,197 112,984,385 135,089,620 Plan fiduciary net position - ending (b)
3 $ 110,377,197 $ 112,984,385 $ 135,089,620 $ 122,460,736 Plan net pension liability - ending (a) - (b) $ 32,550,264 $ 35,491,653 $ 17,178,414 $ 38,540,038 Plan fiduciary net position as a percentage 77.23% 76.10% 88.72% 76.06% of the total pension liability
$ 16,911,782 $ 17,025,948 $ 16,695,742 $ 17,813,128
Plan net pension liability
as a percentage of covered payroll 192.47% 208.46% 102.89% 216.36% Changes of Assumptions: Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptionChanges of Assumptions: Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review o Actuarial Assumptions. The ac counting discount rate was 7.15% for measurement dates 2017 through 2021, 7.65% for measurement dates 2015 through 2016, and 7.50% fo measurement date 2014.

Last Ten Fiscal Years
California Public Employees' Retirement System Defined Benefit Plan (Continued) Covered payroll
4 City of Lakewood
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios (Continued) For the Year Ended June 30, 2023
107
Measurement period 2014-151 2015-16 2016-17 2017-18 2018-19 Total pension liability
Service cost $ 501,866 $ 522,429 $ 538,102 $ 447,262 $ 513,290 Interest 972,653 898,895 1,102,003 1,161,853 1,184,779
Changes of benefit terms - - - - -
Differences between expected and actual experience - (345,830) - (127,926) - Changes of assumptions - 2,749,085 - 1,311,695 -
Benefit payments, including refunds of employee contributions (398,794) (417,601) (493,769) (611,458) (753,088) Net change in total pension liability 1,075,725 3,406,978 1,146,336 2,181,426 944,981 Total pension liability - beginning 13,589,197 14,664,922 18,071,900 19,218,236 21,399,662 Total pension liability - ending (a) $ 14,664,922 $ 18,071,900 $ 19,218,236 $ 21,399,662 $ 22,344,643 Pension fiduciary net position
Contributions - employer $ 3,884,844 $ 54,800 $ 597,130 $ 568,494 $ 644,970 Contributions - employee 293,815 281,187 272,183 243,461 224,569 Net investment income, net of investment expenses 212,179 (8,365) 1,290,294 878,414 954,443 Benefit payments, including refunds of employee contributions (398,794) (417,601) (493,769) (611,458) (753,088) Administrative expenses (19,517) (25,243) (23,483) (32,057) (25,249) Net change in plan fiduciary net position 3,972,527 (115,222) 1,642,355 1,046,854 1,045,645 Plan fiduciary net position - beginning 8,796,523 12,769,050 12,653,828 14,296,183 15,343,037 Plan fiduciary net position - ending (b) $ 12,769,050 $ 12,653,828 $ 14,296,183 $ 15,343,037 $ 16,388,682 Plan net pension liability - ending (a) - (b) $ 1,895,872 $ 5,418,072 $ 4,922,053 $ 6,056,625 $ 5,955,961 Plan fiduciary net position as a percentage 87.07% 70.02% 74.39% 71.70% 73.35% of the total pension liability
Covered payroll $ 10,819,843 $ 11,643,566 $ 11,992,873 $ 9,975,323 $ 8,214,154 Net pension liability as a percentage of covered payroll 17.52% 46.53% 41.04% 60.72% 72.51% City of Lakewood
Last Ten Fiscal Years
Public Agency Retirement System Defined Benefit Plan
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios (Continued) For the Year Ended June 30, 2023
1 Historical information is presented only for measurement periods after GASB 68 implementation in 2014-15. Additional years of information will be displayed as it becomes available.
108
Measurement period 2019-20 2020-21 2021-22 2022-23
Total pension liability
Service cost $ 410,916 $ 422,216 $ 364,553 $ 374,578
Interest 1,231,314 1,275,638 1,319,474 1,263,556
Changes of benefit terms - - - -
Differences between expected and actual experience (134,572) - (1,804,110) - Changes of assumptions 55,742 - - -
Benefit payments, including refunds of employee contributions (746,009) (792,274) (895,425) (918,195) Net change in total pension liability 817,391 905,580 (1,015,508) 719,939 Total pension liability - beginning 22,344,643 23,162,034 24,067,614 23,052,106 Total pension liability - ending (a) $ 23,162,034 $ 24,067,614 $ 23,052,106 $ 23,772,045 Pension fiduciary net position
Contributions - employer $ 708,372 $ 828,452 $ 925,173 $ 924,177 Contributions - employee 221,930 214,864 221,400 198,880 Net investment income, net of investment expenses 575,483 3,871,904 (2,755,385) 1,439,405 Benefit payments, including refunds of employee contributions (746,009) (792,274) (895,425) (918,195) Administrative expenses (30,561) (72,882) (78,117) (72,436) Net change in plan fiduciary net position 729,215 4,050,064 (2,582,354) 1,571,831 Plan fiduciary net position - beginning 16,388,682 17,117,897 21,167,961 18,585,607 Plan fiduciary net position - ending (b) $ 17,117,897 $ 21,167,961 $ 18,585,607 $ 20,157,438 Plan net pension liability - ending (a) - (b) $ 6,044,137 $ 2,899,653 $ 4,466,499 $ 3,614,607 Plan fiduciary net position as a percentage 73.90% 87.95% 80.62% 84.79% of the total pension liability
Covered payroll $ 8,440,043 $ 7,789,532 $ 7,789,532 $6,783,311 Net pension liability as a percentage of covered payroll 71.61% 37.22% 57.34% 53.29% City of Lakewood
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios (Continued) For the Year Ended June 30, 2023
Last Ten Fiscal Years
Public Agency Retirement System Defined Benefit Plan (Continued) 109
2013-141 2014-15 2015-16 2016-17 2017-18
Actuarially determined contribution $ 1,873,372 $ 1,871,751 $ 2,136,551 $ 2,344,596 $ 2,573,441 Contributions in relation to the actuarially determined contribution2 (1,873,372) (1,871,751) (2,717,060) (2,344,596) (2,573,441) Contribution deficiency (excess) $ - $ - $ (580,509) $ - $ - Covered payroll
3 $ 15,265,197 $ 15,213,079 $ 16,033,770 $ 16,036,475 $ 16,673,112 Contributions as a percentage of covered payroll
3 12.27% 12.30% 16.95% 14.62% 15.43%
Notes to Schedule:

Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry Age Normal
Amortization method Level percentage of payroll
Asset valuation method Fair Value of Assets.

Inflation 2.50%
Salary increases Varies by entry age and service
Payroll Growth 2.75%
Investment rate of return
Retirement age
Mortality
The probabilities of retirement are based on the 2014 CalPERS Experience study for the period from 1997 to 2015.

The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP2016 published by the Society of Actuaries.

7.00% Net of pension plan investment and administrative expenses; includes Inflation.
3 Includes one year’s payroll growth using 2.80% payroll growth assumption for fiscal year ended June 30, 2022; 2.75% payroll growth assumption for fiscal years ended June 30, 2018-21;3.00% payroll growth assumption for fiscal years ended June 30, 2014-17. 1 Historical information is presented only for measurement periods after GASB 68 implementation in 2013-14. Additional years of information will be displayed as it becomes available.
2 Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions.

Last Ten Fiscal Years
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2022-23 were derived from the June 30, 2020 funding valuation report.

City of Lakewood
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions
For the Year Ended June 30, 2023
California Public Employees' Retirement System Defined Benefit Plan 110
2018-19 2019-20 2020-21 2021-22 2022-23
Actuarially determined contribution $ 2,938,083 $ 3,476,806 $ 3,879,340 $ 4,405,183 $ 4,722,046 Contributions in relation to the actuarially determined contribution2 (2,938,083) (3,476,806) (3,879,340) (4,405,183) (4,722,046) Contribution deficiency (excess) $ - $ - $ - $ - $ -
Covered payroll
3 $ 16,911,782 $ 17,025,948 $ 16,695,742 $ 17,813,128 $ 18,311,896 Contributions as a percentage of covered payroll
3 17.37% 20.42% 23.24% 24.73% 25.79%
City of Lakewood
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions (Continued)
For the Year Ended June 30, 2023
Last Ten Fiscal Years
California Public Employees' Retirement System Defined Benefit Plan (Continued) 111
2013-141 2014-15 2015-16 2016-17 2017-18
Actuarially determined contribution $ 799,971 $ 871,044 $ 874,736 $ 594,125 $ 493,923 Contributions in relation to the
actuarially determined contribution (723,539) (3,884,844) (54,800) (54,800) (568,494) Contribution deficiency (excess) $ 76,432 $ (3,013,800) $ 819,936 $ 539,325 $ (74,571) Covered payroll $ 13,496,727 $ 10,819,843 $ 11,643,566 $ 11,992,873 $ 9,975,323 Contributions as a percentage of covered payroll 5.36% 35.90% 0.47% 0.46% 5.70% Notes to Schedule:

Valuation date: June 30, 2021
Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry Age Normal
Amortization method Level Dollar, Closed
Remaining amortization period 15 Years
Inflation 2.50%
Payroll growth 2.75%
Investment rate of return 5.50%
Salary increases
Cost of Living Adjustment 2.00%
Withdraw/Disability
Mortality
Retirement age
Maximum Benefits and Salary
Form of Payment Single Life Annuity
Public Agency Retirement System Defined Benefit Plan
Consistent with the rates used to value the CalPERS Miscellaneous Public Agency pension plans (Entry Age 20). Annual increase from 11.3% to 3.6% at 22+ year of service.

Consistent with the Non-Industrial Rates used to value the CalPERS Miscellaneous Public Agency Pension Plans after June 30, 2017.

Pre-retirement: Consistent with the Non-Industrial rates used to value the CalPERS Miscellaneous Public Agency Pension Plans after June 30, 2017.

Post-retirement: Consistent with the Non-Industrial rates used to value the CalPERS Miscellaneous Public Agency Pension Plans after June 30, 2017.

Rates are based on CalPERS rates for 20 years of service retirement for Miscellaneous Public Agency "2.5% at 55" Pension Plans, with increased rates of 30% at ages 60 and 62 and 50% at age 65. Rates are one-half the CalPERS rates for ages 55-59 for the deferred retirement benefit. Ranges from 3.65% at age 55 to 100% at age 75+.

Salary used in the calculation of final average compensation is subject to the limitations of IRC 401(a)(17). The limit is assumed to increase 2.50% per annum. 1 Historical information is presented only for measurement periods for which GASB 68 is applicable. Additional years' information will be displayed as it becomes available.

Schedule of Contributions - Pensions (Continued)
City of Lakewood
Required Supplementary Information (Unaudited)
For the Year Ended June 30, 2023
Last Ten Fiscal Years
112
2018-19 2019-20 2020-21 2021-22 2022-23
Actuarially determined contribution $ 814,859 $ 660,417 $ 816,996 $ 754,027 $ 338,440 Contributions in relation to the
actuarially determined contribution (644,970) (708,372) (828,452) (925,173) (924,177) Contribution deficiency (excess) $ 169,889 $ (47,955) $ (11,456) $ (171,146) $ (585,737) Covered payroll $ 8,214,154 $ 8,440,043 $ 7,789,532 $ 8,003,744 $ 6,783,311 Contributions as a percentage of covered payroll 7.85% 8.39% 10.64% 11.56% 13.62% Public Agency Retirement System Defined Benefit Plan (Continued) City of Lakewood
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions (Continued)
For the Year Ended June 30, 2023
Last Ten Fiscal Years
113
Measurement period 2017-181 2018-19 2019-20 2020-21 2021-22 Total OPEB liability
Service cost $ 320,972 $ 330,601 $ 299,960 $ 308,959 $ 395,666 Interest 573,684 599,131 693,671 722,666 693,385
Changes of benefit terms - - - - -
Differences between expected and actual experience - - 540,463 - (1,450,251) Changes of assumptions - - 325,404 - 401,856
Benefit payments, including refunds of employee contributions (417,410) (525,242) (514,369) (524,546) (592,348) Net change in total OPEB liability 477,246 404,490 1,345,129 507,079 (551,692) Total OPEB liability - beginning 9,767,059 10,244,305 10,648,795 11,993,924 12,501,003 Total OPEB liability - ending (a) $ 10,244,305 $ 10,648,795 $ 11,993,924 $ 12,501,003 $ 11,949,311 Plan fiduciary net position
Contributions - employer $ 417,410 $ 525,242 $ 514,369 $ 524,546 $ 592,348 Net investment income 575,333 652,234 390,793 2,315,064 (1,607,601) Benefit payments, including refunds of employee contributions (417,410) (525,242) (514,369) (524,546) (592,348) Administrative expense (48,048) (48,909) (53,841) (59,444) (63,710) Net change in plan fiduciary net position 527,285 603,325 336,952 2,255,620 (1,671,311) Plan fiduciary net position - beginning 8,750,403 9,277,688 9,881,013 10,217,965 12,473,585 Plan fiduciary net position - ending (b) $ 9,277,688 $ 9,881,013 $ 10,217,965 $ 12,473,585 $ 10,802,274 Plan net OPEB liability - ending (a) - (b) $ 966,617 $ 767,782 $ 1,775,959 $ 27,418 $ 1,147,037 Plan fiduciary net position as a percentage 90.56% 92.79% 85.19% 99.78% 90.40% of the total OPEB liability
Covered payroll $ 12,097,503 $ 13,157,503 $ 12,916,288 $ 14,121,769 $ 13,948,556 Plan net OPEB liability as a percentage of covered payroll 7.99% 5.84% 13.75% 0.19% 8.22% 1 Historical information is presented only for measurement periods after GASB 75 implementation in 2017-18. Additional years of information will be displayed as it becomes available.

City of Lakewood
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Other Postemployment Benefits Liability and Related Ratios For the Year Ended June 30, 2023
Last Ten Fiscal Years
Other Postemployment Benefits Plan
114
Measurement period 2022-23
Total OPEB liability
Service cost $ 407,536
Interest 721,812
Changes of benefit terms -
Differences between expected and actual experience -
Changes of assumptions -
Benefit payments, including refunds of employee contributions (662,941) Net change in total OPEB liability 466,407
Total OPEB liability - beginning 11,949,311
Total OPEB liability - ending (a) $ 12,415,718
Plan fiduciary net position
Contributions - employer $ 662,941
Net investment income 820,756
Benefit payments, including refunds of employee contributions (662,941) Administrative expense (57,968)
Net change in plan fiduciary net position 762,788
Plan fiduciary net position - beginning 10,802,274
Plan fiduciary net position - ending (b) $ 11,565,062
Plan net OPEB liability - ending (a) - (b) $ 850,656
Plan fiduciary net position as a percentage 93.15%
of the total OPEB liability
Covered payroll $ 13,194,612
Plan net OPEB liability as a percentage of covered payroll 6.45% Last Ten Fiscal Years
Other Postemployment Benefits Plan (Continued)
City of Lakewood
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Other Postemployment Benefits Liability and Related Ratios (Continued) For the Year Ended June 30, 2023
115
Fiscal year 2017-181 2018-19 2019-20 2020-21 2021-22
Actuarially determined contribution $ 373,794 $ 385,009 $ 402,839 $ 414,924 $ 364,789 Contributions in relation to the
actuarially determined contribution (417,410) (525,242) (514,369) (524,546) (592,348) Contribution deficiency (excess) $ (43,616) $ (140,233) $ (111,530) $ (109,622) $ (227,559) Covered payroll $ 12,097,503 $ 13,157,503 $ 12,916,288 $ 14,121,769 $ 13,948,556 Contributions as a percentage of covered payroll 3.45% 3.99% 3.98% 3.71% 4.25% Notes to Schedule:

Valuation date July 1, 2021
Reporting period July 1, 2022 to June 30, 2023
Measurement period July 1, 2022 to June 30, 2023
Actuarial cost method Entry age
Amortization method Level percentage of payroll, closed Amortization period 30 years
Asset valuation method Market value
Inflation
Salary increases
Investment rate of return 6.00 %, net of OPEB plan investment expense Healthcare cost trend rates
Mortality
1 Historical information is presented only for measurement periods for which GASB 75 is applicable. Additional years' information will be displayed as it becomes available.

3.00%

5.20 percent for 2023 through 2034; 5.00 percent for 2035 through 2049; 4.50 percent for 2050 through 2064; and 4.00 percent for 2065 and later years CalPERS Public Agency Miscellaneous Mortality, with fully generational mortality improvement using 80% of MP-2020 (most recent CalPERS Experience Study).

City of Lakewood
Required Supplementary Information (Unaudited)
Schedule of Contributions - Other Postemployment Benefits For the Year Ended June 30, 2023
Other Postemployment Benefits Plan
Last Ten Fiscal Years

2.50%
116
Fiscal year 2022-23
Actuarially determined contribution $ 375,733
Contributions in relation to the
actuarially determined contribution (662,941)
Contribution deficiency (excess) $ (287,208)
Covered payroll $ 13,194,612
Contributions as a percentage of covered payroll 5.02%
Other Postemployment Benefits Plan (Continued)
City of Lakewood
Required Supplementary Information (Unaudited)
Schedule of Contributions - Other Postemployment Benefits (Continued) For the Year Ended June 30, 2023
Last Ten Fiscal Years
117
118

SUPPLEMENTARY INFORMATION
119
120
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Investment income $ 150 $ 150 $ 76,613 $ 76,463
Other income 180,000 180,000 162,000 (18,000)
Total revenues 180,150 180,150 238,613 58,463
EXPENDITURES:

Current:

Community development 209,800 209,800 209,210 590
Total expenditures 209,800 209,800 209,210 590

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (29,650) (29,650) 29,403 57,873
OTHER FINANCING USES:

Transfers out (200,000) (200,000) (200,000) -
Total other financing uses (200,000) (200,000) (200,000) - NET CHANGES IN FUND BALANCE $ (229,650) $ (229,650) (170,597) $ 57,873 FUND BALANCE:

Beginning of year 12,451,001
End of year $ 12,280,404
City of Lakewood
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Housing Admin and Program Capital Projects Fund
For the Year Ended June 30, 2023
121
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Intergovernmental revenues $ - $ 865,985 $ 877,153 $ 11,168 Total revenues - 865,985 877,153 11,168
EXPENDITURES:

Capital outlay:

Transportation - 3,375,533 486,195 2,889,338
Total expenditures - 3,375,533 486,195 2,889,338
NET CHANGES IN FUND BALANCE $ - $ (2,509,548) 390,958 $ 2,900,506 FUND BALANCE:

Beginning of year 1,445,497
End of year $ 1,836,455
Lakewood Capital Improvements Capital Projects Fund
City of Lakewood
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2023
122

NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds are used to account for taxes and other revenues set aside in accordance with the law or administrative regulations for a specific purpose.

Nonmajor Special Revenue Funds:

AB 2766 Fund - To account for motor vehicle registration fees authorized by Assembly Bill 2766. These funds are to be used solely to reduce air pollution from mobile sources.

Beverage Container Recycle Grant Fund - To account for the Department of Resources Recycling and Recovery (CalRecycle) beverage container recycling program to reach and maintain an eighty percent recycling rate for all California refund value beverage containers - aluminum, glass, plastic and bi-metal.

Road Maintenance and Rehab Account Fund - To account for transportation taxes from the Road Repair and Accountability Act of 2017 (SB1 Beall) to be used for local streets and roads and other transportation uses. The source of the revenue are: (1) an additional 12 cent per gallon to the gas excise tax, (2) an additional 10 cent per gallon to the diesel fuel excise tax, and (3) an additional vehicle registration tax.

Community Development Block Grant ("CDBG") Fund - To account for funds received from the U.S. Department of Housing and Urban Development for use in community development projects.

Prop A Transit Fund - To account for Los Angeles County special 1/2 cent transportation sales tax which became effective July 1, 1982. These funds may be used only for certain transportation purposes.

LA County Measure M Fund - To account for Los Angeles County special 1/2 cent sales tax approved pursuant to SB767 which was approved by the METRO Board of Directors on June 23, 2016 and approved by the voters of Los Angeles County on November 8, 2016. These funds may be used to improve transportation and transit service and ease traffic congestion consistent with the Measure M Ordinance #16-01.

Measure R Fund - To account for Los Angeles County special 1/2 cent transportation sales tax which became effectively July 1, 2009. These funds may be used only for certain transportation purposes.

Measure W Fund - To account for funding from Los Angeles County Flood Control District to increase stormwater and urban runoff capture and reduce stormwater and urban runoff pollution.

Park Dedication Fund - To account for business taxes collected on the construction of dwelling units. These funds are used only for park and recreation land and facilities.

Prop A Recreation Fund - To account for expenditures and reimbursements of park maintenance and servicing of Prop A funded projects.

Prop C Transportation Fund - To account for Los Angeles County additional special 1/2 cent transportation sales tax which became effective July 1, 1992. These funds may be only used for certain transportation purposes.

JAG Grant Fund - To account for receipts and expenditures of federal grants to support a broad range of activities to prevent and control crime and to improve the criminal justice systems. 123
Open Space Fund – To account for funding received from the Los Angeles Regional Park and Open Space District for the West San Gabriel River Parkway Improvement Project – Phase III.

NONMAJOR GOVERNMENTAL FUNDS
Nonmajor Special Revenue Funds (Continued):

Sewer Reconstruction Fund - To account for charges collected on construction permits to be used for the reconstruction of sanitary sewers.

State COPS Grant Fund - To account for state funding under the Citizens Option for Public Safety program to supplement City's current funding for front-line law enforcement services.

Local Early Action Planning (LEAP) Grant Fund - To account for LEAP grant fund to assist the preparation and adoption of planning documents, and process improvements that accelerate housing production and facilitate compliance to implement the sixth-cycle Regional Housing Needs Assessment.

CA Natural Resources Agency Grant Fund – To account for the San Martin Park Improvement Project for a new Tot Lot Playground and two new picnic shelters.

SB2 Housing Grant Fund - To account for the Building Homes and Jobs Act funds to be used for updating planning documents and zoning ordinances in order to streamline and encouraging housing production, and to fund HCD to provide technical assistance in updating planning documents.

Used Oil Grant Fund - To account for funding received from California Integrated Waste Management for permanent and sustainable used oil recycling programs.

State Gasoline Tax Fund - To account for state gasoline taxes received by the City. These funds are restricted for street maintenance, right-of-way acquisition, and street construction.

TDA Article Grant Fund - To account for proceeds received from LACMTA under the Transportation Development Act for use on pedestrians, bikeways and handicapped accessibility projects. 124
Beverage
Container Recycle LA County
AB 2766 Grant CDBG JAG Grant Measure M
ASSETS
Cash and investments $ 279,682 $ 137,708 $ 209,897 $ - $ 5,482,899 Accounts receivables 26,973 - 95,177 18,608 -
Notes receivable - - 503,554 - -
Total assets $ 306,655 $ 137,708 $ 808,628 $ 18,608 $ 5,482,899 Liabilities:

Accounts payable $ - $ 1,050 $ 15,795 $ 18,608 $ 303,424 Retention payable - - - - -
Due to other funds - - 440,381 - -
Unearned revenue - - - - -
Total liabilities - 1,050 456,176 18,608 303,424
Deferred Inflows of Resources:

Unavailable revenues - - - - -
Total deferred inflows of resources - - - - -
Fund Balances (Deficit):

Restricted for:

Public safety - - - - -
Transportation 306,655 - - - 5,179,475
Community development - - 352,452 - -
Health and sanitation - 136,658 - - -
Culture and leisure - - - - -
Unassigned (deficit) - - - - -
Total fund balances (deficit) 306,655 136,658 352,452 - 5,179,475 Total liabilities, deferred inflows of
resources and fund balances $ 306,655 $ 137,708 $ 808,628 $ 18,608 $ 5,482,899 (Continued)

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
City of Lakewood
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
Special Revenue Funds
125
Park Prop A Prop A
Measure R Measure W Dedication Recreation Transit
ASSETS
Cash and investments $ 4,608,483 $ 3,214,538 $ 182,281 $ - $ 1,997,149 Accounts receivables - - - 108,358 -
Notes receivable - - - - -
Total assets $ 4,608,483 $ 3,214,538 $ 182,281 $ 108,358 $ 1,997,149 Liabilities:

Accounts payable $ 121,998 $ 60,939 $ - $ - $ 21,774
Retention payable - - - - -
Due to other funds - - - 99,064 -
Unearned revenue - - - - -
Total liabilities 121,998 60,939 - 99,064 21,774
Deferred Inflows of Resources:

Unavailable revenues - - - 108,358 -
Total deferred inflows of resources - - - 108,358 -
Fund Balances (Deficit):

Restricted for:

Public safety - - - - -
Transportation 4,486,485 - - - 1,975,375
Community development - - - - -
Health and sanitation - - - - -
Culture and leisure - 3,153,599 182,281 - -
Unassigned (deficit) - - - (99,064) -
Total fund balances (deficit) 4,486,485 3,153,599 182,281 (99,064) 1,975,375 Total liabilities, deferred inflows of
resources and fund balances $ 4,608,483 $ 3,214,538 $ 182,281 $ 108,358 $ 1,997,149 (Continued)

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Special Revenue Funds
City of Lakewood
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2023
126
Road State State
Prop C Maintenance and Sewer COPS Gasoline
Transportation Rehab Account Reconstruction Grant Tax
ASSETS
Cash and investments $ 4,663,280 $ 5,373,747 $ 111,932 $ 64,291 $ - Accounts receivables 112,880 321,917 - - 180,465
Notes receivable - - - - -
Total assets $ 4,776,160 $ 5,695,664 $ 111,932 $ 64,291 $ 180,465 Liabilities:

Accounts payable $ 7,742 $ - $ - $ 33,333 $ -
Retention payable - - - - -
Due to other funds - - - - 180,465
Unearned revenue - - - - -
Total liabilities 7,742 - - 33,333 180,465
Deferred Inflows of Resources:

Unavailable revenues - - - - -
Total deferred inflows of resources - - - - -
Fund Balances (Deficit):

Restricted for:

Public safety - - - 30,958 -
Transportation 4,768,418 5,695,664 - - -
Community development - - - - -
Health and sanitation - - 111,932 - -
Culture and leisure - - - - -
Unassigned (deficit) - - - - -
Total fund balances (deficit) 4,768,418 5,695,664 111,932 30,958 - Total liabilities, deferred inflows of
resources and fund balances $ 4,776,160 $ 5,695,664 $ 111,932 $ 64,291 $ 180,465 (Continued)

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Special Revenue Funds
City of Lakewood
Nonmajor Governmental Funds
Combining Balance Sheet (Continued)
June 30, 2023
127
TDA Used CA Natural
Article Oil LEAP SB2 Housing Resources
Grant Grant Grant Grant Agency Grant
ASSETS
Cash and investments $ - $ 41,159 $ 116,753 $ - $ -
Accounts receivables 6,288 - 29,178 281,687 49,000
Notes receivable - - - - -
Total assets $ 6,288 $ 41,159 $ 145,931 $ 281,687 $ 49,000 Liabilities:

Accounts payable $ - $ 2,829 $ 9,000 $ 3,150 $ -
Retention payable - - - - -
Due to other funds 5,886 - - 25,333 49,539
Unearned revenue - 12,525 - - -
Total liabilities 5,886 15,354 9,000 28,483 49,539
Deferred Inflows of Resources:

Unavailable revenues - - 20,178 281,687 49,000
Total deferred inflows of resources - - 20,178 281,687 49,000 Fund Balances (Deficit):

Restricted for:

Public safety - - - - -
Transportation 402 - 116,753 - -
Community development - - - - -
Health and sanitation - 25,805 - - -
Culture and leisure - - - - -
Unassigned (deficit) - - - (28,483) (49,539)
Total fund balances (deficit) 402 25,805 116,753 (28,483) (49,539) Total liabilities, deferred inflows of
resources and fund balances $ 6,288 $ 41,159 $ 145,931 $ 281,687 $ 49,000

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
City of Lakewood
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2023
Special Revenue Funds
128
Special Revenue
Funds
Open
Space Total
ASSETS
Cash and investments $ - $ 26,483,799
Accounts receivables - 1,230,531
Notes receivable - 503,554
Total assets $ - $ 28,217,884
Liabilities:

Accounts payable $ 7,605 $ 607,247
Retention payable - -
Due to other funds - 800,668
Unearned revenue - 12,525
Total liabilities 7,605 1,420,440
Deferred Inflows of Resources:

Unavailable revenues - 459,223
Total deferred inflows of resources - 459,223
Fund Balances (Deficit):

Restricted for:

Public safety - 30,958
Transportation - 22,529,227
Community development - 352,452
Health and sanitation - 274,395
Culture and leisure - 3,335,880
Unassigned (deficit) (7,605) (184,691)
Total fund balances (deficit) (7,605) 26,338,221
Total liabilities, deferred inflows of
resources and fund balances $ - $ 28,217,884
(Concluded)

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
City of Lakewood
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2023
129
Beverage
Container
Recycle LA County
AB2766 Grant CDBG JAG Grants Measure M
REVENUES:

Taxes - $ $ - $ - $ - $ -
Licenses and permits - - - - -
Investment income, rents and concession 8,826 4,297 2,410 - 167,748 Intergovernmental revenues 133,144 20,433 521,111 18,608 1,483,396 Other - - - - -
Total revenues 141,970 24,730 523,521 18,608 1,651,144
EXPENDITURES:

Current:

General government - - 729 - -
Public safety - - - 18,608 -
Transportation 10,000 - - - 65,381
Community development - - 152,210 - -
Health and sanitation - 17,534 - - -
Culture and leisure - - 112,402 - -
Capital outlay:

General government 214,725 - - - -
Transportation - - - - 1,056,753
Community development - - 290,095 - -
Culture and leisure - - - - -
Total expenditures 224,725 17,534 555,436 18,608 1,122,134

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (82,755) 7,196 (31,915) - 529,010
OTHER FINANCING SOURCES (USES):

Transfers in - - - - -
Transfers out - - - - -
Proceed from sale of property 12,740 - - - -
Total other financing sources (uses) 12,740 - - - -
NET CHANGES IN FUND BALANCES (70,015) 7,196 (31,915) - 529,010 FUND BALANCES (DEFICIT):

Beginning of year 376,670 129,462 384,367 - 4,650,465
End of year $ 306,655 $ 136,658 $ 352,452 $ - $ 5,179,475 (Continued)
Special Revenue Funds
City of Lakewood
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds
For the Year Ended June 30, 2023
130
Park Prop A Prop A
Measure R Measure W Dedication Recreation Transit
REVENUES:

Taxes - $ $ - $ 42,900 $ - $ 2,108,506
Licenses and permits - - - - -
Investment income, rents and concession 141,402 82,640 - - 57,068 Intergovernmental revenues 1,311,330 1,547,538 - - -
Other - - - - -
Total revenues 1,452,732 1,630,178 42,900 - 2,165,574
EXPENDITURES:

Current:

General government - - - - 23,015
Public safety - - - - -
Transportation 449,816 480,981 - - 1,269,485
Community development - - - - 912
Health and sanitation - - - - -
Culture and leisure - 26,582 - 41,822 -
Capital outlay:

General government - - - - -
Transportation 638,731 - - - 441,702
Community development - - - - -
Culture and leisure - 24,794 - - -
Total expenditures 1,088,547 532,357 - 41,822 1,735,114

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 364,185 1,097,821 42,900 (41,822) 430,460 OTHER FINANCING SOURCES (USES):

Transfers in - - - - -
Transfers out - - - - -
Proceed from sale of property - - - - -
Total other financing sources (uses) - - - - -
(41,822)
NET CHANGES IN FUND BALANCES 364,185 1,097,821 42,900 430,460 FUND BALANCES (DEFICIT):

Beginning of year 4,122,300 2,055,778 139,381 (57,242) 1,544,915 End of year $ 4,486,485 $ 3,153,599 $ 182,281 $ (99,064) $ 1,975,375 (Continued)
City of Lakewood
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2023
Special Revenue Funds
131
Road State State
Prop C Maintenance and Sewer COPS Gasoline
Transportation Rehab Account Reconstruction Grants Tax
REVENUES:

Taxes 1,748,947 $ $ - $ - $ - $ -
Licenses and permits - - 262 - -
Investment income, rents and concession 140,400 158,274 - 2,417 51,284 Intergovernmental revenues - 1,837,110 - 205,124 2,059,365 Other - - - - -
Total revenues 1,889,347 1,995,384 262 207,541 2,110,649 EXPENDITURES:

Current:

General government - - - - -
Public safety - - - 200,000 -
Transportation 572,868 300,000 - - -
Community development - - 34,782 - -
Health and sanitation - - - - -
Culture and leisure - - - - -
Capital outlay:

General government - - - - -
Transportation 1,096,616 1,587,747 - - -
Community development - - - - -
Culture and leisure - - - - -
Total expenditures 1,669,484 1,887,747 34,782 200,000 -

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 219,863 107,637 (34,520) 7,541 2,110,649 OTHER FINANCING SOURCES (USES):

Transfers in - - - - -
Transfers out - - - - (2,307,083)
Proceed from sale of property 112,880 - - - -
Total other financing sources (uses) 112,880 - - - (2,307,083) NET CHANGES IN FUND BALANCES 332,743 107,637 (34,520) 7,541 (196,434) FUND BALANCES (DEFICIT):

Beginning of year 4,435,675 5,588,027 146,452 23,417 196,434 End of year $ 4,768,418 $ 5,695,664 $ 111,932 $ 30,958 $ - (Continued)
City of Lakewood
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2023
Special Revenue Funds
132
TDA Used SB2 CA Natural
Article Oil LEAP Housing Resources
Grant Grant Grant Grant Agency Grant
REVENUES:

Taxes - $ $ - $ - $ - $ -
Licenses and permits - - - - -
Investment income, rents and concession 380 - - - -
Intergovernmental revenues 75,522 8,602 316,544 - 129,449 Other - - - - -
Total revenues 75,902 8,602 316,544 - 129,449
EXPENDITURES:

Current:

General government - - - - -
Public safety - - 70,777 - -
Transportation - - - - -
Community development - - 17,775 - -
Health and sanitation - 8,602 - - -
Culture and leisure - - - - -
Capital outlay:

General government - - - - -
Transportation 75,500 - - - -
Community development - - - 7,140 -
Culture and leisure - - - - 4,953
Total expenditures 75,500 8,602 88,552 7,140 4,953

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 402 - 227,992 (7,140) 124,496
OTHER FINANCING SOURCES (USES):

Transfers in - - - - -
Transfers out - - - - -
Proceed from sale of property - - - - -
Total other financing sources (uses) - - - - -
NET CHANGES IN FUND BALANCES 402 - 227,992 (7,140) 124,496 FUND BALANCES (DEFICIT):

Beginning of year - 25,805 (111,239) (21,343) (174,035) End of year $ 402 $ 25,805 $ 116,753 $ (28,483) $ (49,539) Special Revenue Funds
City of Lakewood
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2023
133
Special Revenue
Funds
Open
Space Total
REVENUES:

Taxes $ - $ 3,900,353
Licenses and permits - 262
Investment income, rents and concession - 817,146
Intergovernmental revenues - 9,667,276
Other - -
Total revenues - 14,385,037
EXPENDITURES:

Current:

General government - 23,744
Public safety - 289,385
Transportation - 3,148,531
Community development - 205,679
Health and sanitation - 26,136
Culture and leisure - 180,806
Capital outlay:

General government - 214,725
Transportation - 4,897,049
Community development - 297,235
Culture and leisure 7,605 37,352
Total expenditures 7,605 9,320,642

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (7,605) 5,064,395
OTHER FINANCING SOURCES (USES):

Transfers in - -
Transfers out - (2,307,083)
Proceed from sale of property 125,620
Total other financing sources (uses) - (2,181,463)
NET CHANGES IN FUND BALANCES (7,605) 2,882,932
FUND BALANCES (DEFICIT):

Beginning of year - 23,455,289
End of year $ (7,605) $ 26,338,221
(Concluded)
City of Lakewood
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2023
134
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Investment income $ 3,000 $ 5,000 $ 8,826 $ 3,826
Intergovernmental revenues 100,000 100,000 133,144 33,144 Other 1,000 3,000 - (3,000)
Total revenues 104,000 108,000 141,970 33,970
EXPENDITURES:

Current:

Transportation 10,000 10,000 10,000 -
Capital outlay:

General government 140,000 218,767 214,725 4,042
Total expenditures 150,000 228,767 224,725 4,042

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (46,000) (120,767) (82,755) 38,012 OTHER FINANCING SOURCES (USES):

Proceed from sale of property - 15,000 12,740 (2,260)
Total other financing sources (use) - 15,000 12,740 (2,260) NET CHANGES IN FUND BALANCE $ (46,000) $ (105,767) (70,015) $ 35,752 FUND BALANCE:

Beginning of year 376,670
End of year $ 306,655
City of Lakewood
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual AB2766 Special Revenue Fund
For the Year Ended June 30, 2023
135
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Investment income $ 1,500 $ 2,000 $ 4,297 $ 2,297
Intergovernmental revenues 17,000 17,000 20,433 3,433
Total revenues 18,500 19,000 24,730 5,730
EXPENDITURES:

Current:

Health and sanitation 18,500 19,299 17,534 1,765
Total expenditures 18,500 19,299 17,534 1,765
NET CHANGES IN FUND BALANCE $ - $ (299) 7,196 $ 7,495
FUND BALANCE:

Beginning of year 129,462
End of year $ 136,658
City of Lakewood
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Beverage Container Recycle Grant Special Revenue Fund
For the Year Ended June 30, 2023
136
Original Final Variance with
Budget Budget Actual Final Budget
Investment income $ 5,000 $ 5,000 $ 2,410 $ (2,590)
Intergovernmental revenues 492,232 600,000 521,111 (78,889) Total revenues 497,232 605,000 523,521 (81,479)
EXPENDITURES:

Current:

General government 6,286 5,772 729 5,043
Community development 248,219 215,346 152,210 63,136
Culture and leisure 115,237 114,389 112,402 1,987
Capital outlay:

Community development - 1,396,347 290,095 1,106,252
Total expenditures 369,742 1,731,854 555,436 1,176,418
NET CHANGES IN FUND BALANCE $ 127,490 $ (1,126,854) (31,915) $ 1,094,939 FUND BALANCE:

Beginning of year 384,367
End of year $ 352,452
City of Lakewood
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Community Development Block Grant Special Revenue Fund
For the Year Ended June 30, 2023
137
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Intergovernmental revenues $ - $ 18,608 $ 18,608 $ -
Total revenues - 18,608 18,608 -
EXPENDITURES:

Current:

Public safety - 18,608 18,608 -
Total expenditures - 18,608 18,608 -
NET CHANGES IN FUND BALANCE $ - $ - - $ -
FUND BALANCE:

Beginning of year -
End of year $ -
City of Lakewood
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual JAG Grant Special Revenue Fund
For the Year Ended June 30, 2023
138
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Investment income $ 30,000 $ 70,000 $ 167,748 $ 97,748
Intergovernmental revenues 1,379,850 1,379,850 1,483,396 103,546 Total revenues 1,409,850 1,449,850 1,651,144 201,294
EXPENDITURES:

Current:

Transportation 210,000 210,000 65,381 144,619
Capital outlay:

Transportation - 1,492,603 1,056,753 435,850
Total expenditures 210,000 1,702,603 1,122,134 580,469
NET CHANGES IN FUND BALANCE $ 1,199,850 $ (252,753) 529,010 $ 781,763 FUND BALANCE:

Beginning of year 4,650,465
End of year $ 5,179,475
City of Lakewood
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual LA County Measure M Special Revenue Fund
For the Year Ended June 30, 2023
139
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Investment income $ 30,000 $ 50,000 $ 141,402 $ 91,402
Intergovernmental revenues 1,217,500 1,217,500 1,311,330 93,830 Total revenues 1,247,500 1,267,500 1,452,732 185,232
EXPENDITURES:

Current:

Transportation 394,142 632,964 449,816 183,148
Capital outlay:

Transportation - 1,213,518 638,731 574,787
Total expenditures 394,142 1,846,482 1,088,547 757,935
NET CHANGES IN FUND BALANCE $ 853,358 $ (578,982) 364,185 $ 943,167 FUND BALANCE:

Beginning of year 4,122,300
End of year $ 4,486,485
City of Lakewood
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Measure R Special Revenue Fund
For the Year Ended June 30, 2023
140
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Investment income $ 5,000 $ 23,000 $ 82,640 $ 59,640
Intergovernmental revenues - 1,096,088 1,547,538 451,450 Total revenues 5,000 1,119,088 1,630,178 511,090
EXPENDITURES:

Current:

Transportation 596,900 575,053 480,981 94,072
Culture and leisure 38,812 31,050 26,582 4,468
Capital outlay:

Culture and leisure - 300,000 24,794 275,206
Total expenditures 635,712 906,103 532,357 373,746
NET CHANGES IN FUND BALANCE $ (630,712) $ 212,985 1,097,821 $ 884,836 FUND BALANCE:

Beginning of year 2,055,778
End of year $ 3,153,599
City of Lakewood
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Measure W Special Revenue Fund
For the Year Ended June 30, 2023
141
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Taxes $ 13,200 $ 35,000 $ 42,900 $ 7,900
Total revenues 13,200 35,000 42,900 7,900
NET CHANGES IN FUND BALANCE $ 13,200 $ 35,000 42,900 $ 7,900 FUND BALANCE:

Beginning of year 139,381
End of year $ 182,281
City of Lakewood
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Park Dedication Special Revenue Fund
For the Year Ended June 30, 2023
142
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Intergovernmental revenues $ 38,440 $ 38,440 $ - $ (38,440) Total revenues 38,440 38,440 - (38,440)
EXPENDITURES:

Current:

Culture and leisure 36,012 37,512 41,822 (4,310)
Total expenditures 36,012 37,512 41,822 (4,310)
NET CHANGES IN FUND BALANCE $ 2,428 $ 928 (41,822) $ (42,750) FUND BALANCE (DEFICIT):

Beginning of year (57,242)
End of year $ (99,064)
City of Lakewood
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Prop A Recreation Special Revenue Fund
For the Year Ended June 30, 2023
143
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Taxes 1,957,100 $ $ 1,957,100 $ 2,108,506 $ 151,406
Investment income 12,000 24,000 57,068 33,068
Total revenues 1,969,100 1,981,100 2,165,574 184,474
EXPENDITURES:

Current:

General government 13,666 22,415 23,015 (600)
Transportation 1,248,092 1,268,092 1,269,485 (1,393)
Community development 10,551 3,192 912 2,280
Capital outlay:

General government 225,000 - - -
Transportation - 441,703 441,702 1
Total expenditures 1,497,309 1,735,402 1,735,114 288
NET CHANGES IN FUND BALANCE $ 471,791 $ 245,698 430,460 $ 184,762 FUND BALANCE:

Beginning of year 1,544,915
End of year $ 1,975,375
City of Lakewood
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Prop A Transit Special Revenue Fund
For the Year Ended June 30, 2023
144
Original Final Variance with
Budget Budget Actual Final Budget
Taxes 1,623,350 $ $ 1,623,350 $ 1,748,947 $ 125,597
Investment income 25,000 65,000 140,400 75,400
Total revenues 1,648,350 1,688,350 1,889,347 200,997
EXPENDITURES:

Current:

Transportation 866,368 654,322 572,868 81,454
Capital outlay:

Transportation - 750,000 1,096,616 (346,616)
Total expenditures 866,368 1,404,322 1,669,484 (265,162)

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 781,982 284,028 219,863 (64,165)
OTHER FINANCING SOURCES (USES):

Proceed from sale of property - - 112,880 112,880
Total other financing sources (use) - - 112,880 112,880 NET CHANGES IN FUND BALANCE $ 781,982 $ 284,028 332,743 $ 48,715 FUND BALANCE:

Beginning of year 4,435,675
End of year $ 4,768,418
City of Lakewood
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Prop C Transportation Special Revenue Fund
For the Year Ended June 30, 2023
145
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Investment income $ 30,000 $ 70,000 $ 158,274 $ 88,274
Intergovernmental revenues 1,828,550 1,828,550 1,837,110 8,560 Total revenues 1,858,550 1,898,550 1,995,384 96,834
EXPENDITURES:

Current:

Transportation 300,000 300,000 300,000 -
Capital outlay:

Transportation - 2,125,537 1,587,747 537,790
Total expenditures 300,000 2,425,537 1,887,747 537,790
NET CHANGES IN FUND BALANCE $ 1,558,550 $ (526,987) 107,637 $ 634,624 FUND BALANCE:

Beginning of year 5,588,027
End of year $ 5,695,664
City of Lakewood
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Road Maintenance and Rehab Account Special Revenue Fund For the Year Ended June 30, 2023
146
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

License and permits $ 3,000 $ 300 $ 262 $ (38)
Total revenues 3,000 300 262 (38)
EXPENDITURES:

Current:

Community development - 35,140 34,782 358
Total expenditures - 35,140 34,782 358
NET CHANGES IN FUND BALANCE $ 3,000 $ (34,840) (34,520) $ 320 FUND BALANCE:

Beginning of year 146,452
End of year $ 111,932
City of Lakewood
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Sewer Reconstruction Special Revenue Fund
For the Year Ended June 30, 2023
147
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Investment income $ 1,000 $ 1,000 $ 2,417 $ 1,417
Intergovernmental revenues 200,000 200,000 205,124 5,124 Total revenues 201,000 201,000 207,541 6,541
EXPENDITURES:

Current:

Public safety 200,000 200,000 200,000 -
Total expenditures 200,000 200,000 200,000 -
NET CHANGES IN FUND BALANCE $ 1,000 $ 1,000 7,541 $ 6,541 FUND BALANCE:

Beginning of year 23,417
End of year $ 30,958
City of Lakewood
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual State COPS Grant Special Revenue Fund
For the Year Ended June 30, 2023
148
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Investment income $ 10,000 $ 10,000 $ 51,284 $ 41,284
Intergovernmental revenues 2,315,100 2,315,100 2,059,365 (255,735) Total revenues 2,325,100 2,325,100 2,110,649 (214,451)
OTHER FINANCING USES:

Transfers out (2,325,100) (2,325,100) (2,307,083) 18,017 Total other financing uses (2,325,100) (2,325,100) (2,307,083) 18,017 NET CHANGES IN FUND BALANCE $ - $ - (196,434) $ (196,434) FUND BALANCE:

Beginning of year 196,434
End of year $ -
City of Lakewood
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual State Gasoline Tax Special Revenue Fund
For the Year Ended June 30, 2023
149
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Investment income (loss), rents and concession $ - $ - $ 380 $ 380 Intergovernmental revenues 75,522 75,522 75,522 -
Total revenues 75,522 75,522 75,902 380
EXPENDITURES:

Capital outlay:

Transportation - 75,522 75,500 22
Total expenditures - 75,522 75,500 22
NET CHANGES IN FUND BALANCE $ 75,522 $ - 402 $ 402
FUND BALANCE:

Beginning of year -
End of year $ 402
City of Lakewood
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual TDA Article Grant Special Revenue Fund
For the Year Ended June 30, 2023
150
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Intergovernmental revenues $ 20,000 $ 20,000 $ 8,602 $ (11,398) Total revenues 20,000 20,000 8,602 (11,398)
EXPENDITURES:

Current:

Health and sanitation 20,000 11,098 8,602 2,496
Total expenditures 20,000 11,098 8,602 2,496
NET CHANGES IN FUND BALANCE $ - $ 8,902 - $ (8,902)
FUND BALANCE:

Beginning of year 25,805
End of year $ 25,805
City of Lakewood
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Used Oil Grant Special Revenue Fund
For the Year Ended June 30, 2023
151
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Intergovernmental revenues $ 52,400 $ 336,480 $ 316,544 $ (19,936) Total revenues 52,400 336,480 316,544 (19,936)
EXPENDITURES:

Current:

Public safety - 150,000 70,777 79,223
Community development 56,750 110,116 17,775 92,341
Total expenditures 56,750 260,116 88,552 171,564
NET CHANGES IN FUND BALANCE $ (4,350) $ 76,364 227,992 $ 151,628 FUND BALANCE (DEFICIT):

Beginning of year (111,239)
End of year $ 116,753
City of Lakewood
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual LEAP Grant Special Revenue Fund
For the Year Ended June 30, 2023
152
Original Final Variance with
Budget Budget Actual Final Budget
EXPENDITURES:

Capital outlay:

Community development - 285,573 7,140 278,433
Total expenditures - 285,573 7,140 278,433
NET CHANGES IN FUND BALANCE $ - $ (285,573) (7,140) $ 278,433 FUND BALANCE (DEFICIT):

Beginning of year (21,343)
End of year $ (28,483)
City of Lakewood
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual SB2 Housing Grant Special Revenue Fund
For the Year Ended June 30, 2023
153
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Intergovernmental revenues $ - $ 2,114,260 $ 129,449 $ (1,984,811) Total revenues - 2,114,260 129,449 (1,984,811)
EXPENDITURES:

Capital outlay:

Culture and leisure - 2,004,414 4,953 1,999,461
Total expenditures - 2,004,414 4,953 1,999,461
NET CHANGES IN FUND BALANCE $ - $ 109,846 124,496 $ 14,650 FUND BALANCE (DEFICIT):

Beginning of year (174,035)
End of year $ (49,539)
City of Lakewood
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual CA Natural Resources Agency Grant Special Revenue Fund
For the Year Ended June 30, 2023
154
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Intergovernmental revenues $ - $ 1,035,886 $ - $ (1,035,886) Total revenues - 1,035,886 - (1,035,886)
EXPENDITURES:

Capital outlay:

Culture and leisure - 1,035,886 7,605 1,028,281
Total expenditures - 1,035,886 7,605 1,028,281
NET CHANGES IN FUND BALANCE $ - $ - (7,605) $ (7,605)
FUND BALANCE (DEFICIT):

Beginning of year -
End of year $ (7,605)
City of Lakewood
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Open Space Special Revenue Fund
For the Year Ended June 30, 2023
155
156
Internal Service Funds
Central Garage - To account for maintenance and repair of vehicle and equipment used by various departments of the City. Costs are billed to the various departments as the work is completed.

Print Shop Fund - To account for the printing services provided to the various departments of the City. Costs of materials, supplies and services are billed as the work is completed. 157
158
Central Print
Garage Shop Total
ASSETS
Current Assets:

Inventories $ 58,056 $ 6,414 $ 64,470
Prepaid items 1,647 - 1,647
Total current assets 59,703 6,414 66,117
Noncurrent assets:

Capital assets:

Capital assets, being depreciated:

Equipment 1,403,604 - 1,403,604
Less: accumulated depreciation (1,298,705) - (1,298,705) Total capital assets, net 104,899 - 104,899
Total noncurrent assets 104,899 - 104,899
Total assets 164,602 6,414 171,016

LIABILITIES
Current liabilities:

Accounts payable 30,977 1,010 31,987
Accrued liabilities 11,045 4,738 15,783
Total current liabilities 42,022 5,748 47,770
Total liabilities 42,022 5,748 47,770

NET POSITION
Investment in capital assets 104,899 - 104,899
Unrestricted 17,681 666 18,347
Total net position $ 122,580 $ 666 $ 123,246
City of Lakewood
Combining Statement of Net Position
Internal Service Funds
June 30, 2023
159
Central Print
Garage Shop Total
OPERATING REVENUES:

Billing to departments $ 122,532 $ 894 $ 123,426
Total operating revenues 122,532 894 123,426
OPERATING EXPENSES:

Operating expenses 1,092,976 268,760 1,361,736
Depreciation 27,654 - 27,654
Total operating expenses 1,120,630 268,760 1,389,390
OPERATING INCOME (LOSS) (998,098) (267,866) (1,265,964) OTHER FINANCING SOURCES (USES):

Transfers in 915,411 272,857 1,188,268
Total other financing sources (uses) 915,411 272,857 1,188,268 CHANGE IN NET POSITION (82,687) 4,991 (77,696)
NET POSITION (DEFICIT):

Beginning of the year 205,267 (4,325) 200,942
End of the year $ 122,580 $ 666 $ 123,246
City of Lakewood
Combining Statement of Revenues, Expenses, and Changes in Net Position Internal Service Funds
For the Year Ended June 30, 2023
160
Central Print
Garage Shop Total
CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from interfund services provided $ 122,532 $ 894 $ 123,426 Payments to suppliers for goods and services (1,021,839) (273,751) (1,295,590) Net cash (used in) operating activities (899,307) (272,857) (1,172,164)

CASH FLOWS FROM NONCAPITAL AND
RELATED FINANCING ACTIVITIES:

Transfers in 915,411 272,857 1,188,268
Net cash provided by capital and related financing activities 915,411 272,857 1,188,268

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Acquisition of capital assets (16,104) - (16,104)
Net cash (used in) capital and related financing activities (16,104) - (16,104) Changes in cash and cash equivalents - - -
CASH AND CASH EQUIVALENTS:

Beginning of year - - -
End of year $ - $ - $ -

RECONCILIATION OF OPERATING (LOSS) TO
NET CASH (USED IN) OPERATING ACTIVITES:

Operating (loss) $ (998,098) $ (267,866) $ (1,265,964)
Adjustments to reconcile operating (loss) to net cash
(used in) operating activities:

Depreciation 27,654 - 27,654
Change in assets and liabilities:
(Increase) decrease in inventories 109,229 1,594 110,823 (Increase) decrease in prepaid (58,056) - (58,056)
Increase (decrease) in accounts payable 16,113 (7,723) 8,390 Increase (decrease) in accrued liabilities 3,851 1,138 4,989 Total adjustment 98,791 (4,991) 93,800
Net cash (used in) operating activities $ (899,307) $ (272,857) $ (1,172,164) City of Lakewood
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2023
161
162

STATISTICAL SECTION
163
164
Contents: Pages
166-175
177-185
186-193
194
195-199
Financial Trends - These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time.

Revenue Capacity - These schedules contain information to help the reader assess the City's most significant local revenue source, the property tax.

Debt Capacity - These schedules present information to help the reader assess the affordability of the City's current level of outstanding debt and the City's ability to issue additional debt in the future.

Demographic and Economic Information - These schedules offer demographics and economic indicators to help the reader understand the environment within which the City's financial activities take place.

Operating Information - These schedules contain service and infrastructure data to help the reader understand how the information in the City's financial report related to the services the City provides and activities it performs.

This part of the City of Lakewood's annual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information say about the government's overall financial health.

City of Lakewood
Description of Statistical Section Contents
June 30, 2023
165
2014* 2015 2016 2017** 2018
Government activities:

Net investment in capital assets $ 89,075,037 $ 88,511,175 $ 90,100,125 $ 94,918,550 $ 100,416,548 Restricted 3,994,605 15,464,118 10,805,986 15,160,381 21,751,112 Unrestricted 39,712,067 26,918,679 31,932,235 25,186,231 17,346,009 Total governmental activities
net position $ 132,781,709 $ 130,893,972 $ 132,838,346 $ 135,265,162 $ 139,513,669 Business-type activities:

Net investment in capital assets $ 24,587,382 $ 27,408,545 $ 28,527,530 $ 27,587,388 $ 26,543,189 Restricted - - - - -
Unrestricted 7,988,528 6,004,051 6,287,737 9,848,943 11,954,770 Total business-type activities
net position $ 32,575,910 $ 33,412,596 $ 34,815,267 $ 37,436,331 $ 38,497,959 Primary government:

Net investment in capital assets $ 113,662,419 $ 115,919,720 $ 118,627,655 $ 122,505,938 $ 126,959,737 Restricted 3,994,605 15,464,118 10,805,986 15,160,381 21,751,112 Unrestricted 47,700,595 32,922,730 38,219,972 35,035,174 29,300,779 Total primary government net position $ 165,357,619 $ 164,306,568 $ 167,653,613 $ 172,701,493 $ 178,011,628 * 2014 unrestricted net positions are restated as result of implementation of GASB Statements No. 68 and 71. ** 2017 unrestricted net positions are restated as result of implementation of GASB Statement No. 75. (accrual basis of accounting)
Fiscal Year
City of Lakewood
Net Position by Component
Last Ten Fiscal Years
Source: Department of Administrative Services, City of Lakewood 166
2019 2020 2021 2022 2023
Government activities:

Net investment in capital assets $ 108,108,047 $ 111,479,193 $ 115,207,736 $ 118,073,852 $ 121,076,026 Restricted 24,069,839 27,088,588 36,051,636 38,566,384 41,623,987 Unrestricted 16,446,872 13,077,407 21,717,181 37,163,986 55,003,027 Total governmental activities
net position $ 148,624,758 $ 151,645,188 $ 172,976,553 $ 193,804,222 $ 217,703,040 Business-type activities:

Net investment in capital assets $ 26,327,391 $ 27,211,808 $ 27,173,204 $ 27,686,379 $ 27,470,407 Restricted - - - - -
Unrestricted 13,057,126 12,982,718 14,792,197 14,779,213 15,583,527 Total business-type activities
net position $ 39,384,517 $ 40,194,526 $ 41,965,401 $ 42,465,592 $ 43,053,934 Primary government:

Net investment in capital assets $ 134,435,438 $ 138,691,001 $ 142,380,940 $ 145,760,231 $ 148,546,433 Restricted 24,069,839 27,088,588 36,051,636 38,566,384 41,623,987 Unrestricted 29,503,998 26,060,125 36,509,378 51,943,199 70,586,554 Total primary government net position $ 188,009,275 $ 191,839,714 $ 214,941,954 $ 236,269,814 $ 260,756,974 (accrual basis of accounting)
Fiscal Year
City of Lakewood
Net Position by Component (Continued)
Last Ten Fiscal Years
Source: Department of Administrative Services, City of Lakewood 167
2014 2015 2016 2017 2018
Expenses:

Governmental Activities:

General government $ 7,412,703 $ 10,354,630 $ 7,187,053 $ 7,618,899 $ 8,414,207 Public Safety 12,983,054 13,525,219 14,271,008 14,266,703 14,934,025 Transportation 4,587,061 4,772,202 4,740,336 4,915,779 5,319,350 Community development 4,967,510 4,622,036 4,759,414 5,216,400 5,602,768 Health and sanitation 4,925,697 4,888,091 4,901,125 5,066,047 5,173,751 Culture and leisure 11,386,411 12,090,213 11,770,595 12,757,229 13,919,102 Unallocated infrastructure depreciation 2,676,442 2,695,986 2,721,461 2,732,259 2,680,800 Interest on long-term debt - - 15,143 14,308 12,246
Total governmental activities expenses 48,938,878 52,948,377 50,366,135 52,587,624 56,056,249 Business-type activities:

Water 9,990,086 9,554,985 9,628,369 9,316,642 12,124,940 Total primary government expenses $ 58,928,964 $ 62,503,362 $ 59,994,504 $ 61,904,266 $ 68,181,189 Program revenues:

Governmental activities:

Charges for services:

General government $ 1,753,540 $ 1,679,199 $ 1,790,751 $ 1,961,794 $ 1,701,064 Public safety 863,286 866,028 912,841 828,408 799,898
Community development 1,199,667 1,647,432 1,754,359 1,687,297 1,644,380 Health and sanitation 5,111,702 5,242,204 5,309,601 5,430,005 5,493,200 Culture and leisure 1,562,310 1,577,319 1,543,688 1,591,984 1,505,685 Operating grants and contributions 4,810,026 4,176,696 3,585,692 6,100,046 8,633,736 Capital grants and contributions 866,959 1,726,390 3,365,208 8,542,663 6,315,712 Total governmental activities program
revenues 16,167,490 16,915,268 18,262,140 26,142,197 26,093,675 Business-type activities:

Charges for services:

Water 11,711,839 10,311,109 10,930,852 10,873,311 13,003,840 Total primary government
program revenues $ 27,879,329 $ 27,226,377 $ 29,192,992 $ 37,015,508 $ 39,097,515 Net revenues (expenses):

Governmental activities $ (32,771,388) $ (36,033,109) $ (32,103,995) $ (26,445,427) $ (29,962,574) Business-type activities 1,721,753 756,124 1,302,483 1,556,669 878,900 Total net revenues (expenses) $ (31,049,635) $ (35,276,985) $ (30,801,512) $ (24,888,758) $ (29,083,674) (accrual basis of accounting)
Fiscal Year
City of Lakewood
Changes in Net Position - Expenses and Program Revenues Last Ten Fiscal Years
Source: Department of Administrative Services, City of Lakewood 168
2019 2020 2021 2022 2023
Expenses:

Governmental Activities:

General government $ 8,623,397 $ 9,633,988 $ 11,542,121 $ 9,982,626 $ 11,937,554 Public Safety 15,587,612 15,847,990 16,955,187 17,505,002 19,143,257 Transportation 5,618,743 6,191,543 6,551,094 6,503,537 7,344,923 Community development 5,755,708 5,965,959 6,018,023 5,291,189 6,852,859 Health and sanitation 5,440,069 5,488,139 5,705,506 6,083,718 6,601,028 Culture and leisure 14,023,325 14,317,749 14,449,389 13,651,705 15,790,357 Unallocated infrastructure depreciation 2,610,286 2,472,242 2,772,636 2,723,750 2,853,732 Interest on long-term debt 10,065 24,865 25,131 6,525 11,291 Total governmental activities expenses 57,669,205 59,942,475 64,019,087 61,748,052 70,535,001 Business-type activities:

Water 12,722,577 12,340,848 10,534,148 11,481,342 11,752,016 Total primary government expenses $ 70,391,782 $ 72,283,323 $ 74,553,235 $ 73,229,394 $ 82,287,017 Program revenues:

Governmental activities:

Charges for services:

General government $ 1,842,865 $ 1,723,330 $ 1,549,999 $ 1,450,370 $ 2,701,247 Public safety 824,844 739,734 721,881 838,925 413,873
Community development 1,831,695 1,647,529 1,890,846 1,962,283 3,164,754 Health and sanitation 5,736,770 6,017,870 6,332,537 6,483,492 7,145,242 Culture and leisure 1,627,965 1,050,990 578,668 1,232,960 1,738,400 Operating grants and contributions 9,751,629 8,862,665 13,234,375 13,575,994 16,264,335 Capital grants and contributions 8,315,163 6,378,745 10,424,134 2,957,680 2,532,217 Total governmental activities program
revenues 29,930,931 26,420,863 34,732,440 28,501,704 33,960,068 Business-type activities:

Charges for services:

Water 13,354,770 12,869,000 13,965,629 13,787,798 13,497,514 Total primary government
program revenues $ 43,285,701 $ 39,289,863 $ 48,698,069 $ 42,289,502 $ 47,457,582 Net revenues (expenses):

Governmental activities $ (27,738,274) $ (33,521,612) $ (29,286,647) $ (33,246,348) $ (36,574,933) Business-type activities 632,193 528,152 3,431,481 2,306,456 1,745,498 Total net revenues (expenses) $ (27,106,081) $ (32,993,460) $ (25,855,166) $ (30,939,892) $ (34,829,435) (accrual basis of accounting)
Fiscal Year
City of Lakewood
Changes in Net Position - Expenses and Program Revenues (Continued) Last Ten Fiscal Years
Source: Department of Administrative Services, City of Lakewood 169
2014 2015 2016 2017 2018
General revenues and other changes in
net position:

Governmental activities:

Taxes:

Sales taxes $ 15,792,115 $ 15,890,678 $ 15,961,352 $ 14,133,828 $ 14,303,519 Property taxes 11,310,210 11,831,561 12,747,876 13,039,739 13,795,722 Franchise taxes 1,697,405 1,757,264 1,699,343 1,430,601 1,598,487 Business operation taxes 542,110 565,441 1,016,140 674,880 650,728 Utility user taxes 3,520,414 3,464,047 3,398,962 3,314,095 3,163,738 Other taxes 322,834 372,276 378,213 442,393 424,144
Unrestricted, motor vehicle in lieu 35,499 - - - -
Grants and contributions not
restricted to specific programs - - - - -
Gain on sale of property - - - 114,000 -
Transfers in
Investment income (loss) 377,099 264,105 482,676 459,477 274,743 Total governmental activities 33,597,686 34,145,372 35,684,562 33,609,013 34,211,081 Business-type activities:

Gain on sale of capital assets - - - 1,035,021 -
Transfers out
Investment income 60,664 80,562 100,188 131,040 182,728 Total business-type activities 60,664 80,562 100,188 1,166,061 182,728 Total primary government $ 33,658,350 $ 34,225,934 $ 35,784,750 $ 34,775,074 $ 34,393,809 Changes in net position, before
special and extraordinary item
Governmental activities $ 808,298 $ 1,373,984 $ (348,547) $ 1,505,018 $ 7,765,654 Business-type activities 1,782,417 1,802,315 856,312 2,468,544 1,739,397 Special item - - (1,636,193) - -
Extraordinary item - - - - -
Changes in net position
Governmental activities $ 808,298 $ 1,373,984 $ (1,984,740) $ 1,505,018 $ 7,765,654 Business-type activities 1,782,417 1,802,315 856,312 2,468,544 1,739,397 Total primary government $ 2,590,715 $ 3,176,299 $ (1,128,428) $ 3,973,562 $ 9,505,051 (accrual basis of accounting)
Fiscal Year
City of Lakewood
Changes in Net Position - Expenses and Program Revenues (Continued) Last Ten Fiscal Years
Source: Department of Administrative Services, City of Lakewood 170
2019 2020 2021 2022 2023
General revenues and other changes in
net position:

Governmental activities:

Taxes:

Sales taxes $ 14,635,987 $ 13,555,147 $ 26,182,543 $ 31,256,373 $ 31,642,524 Property taxes 14,637,510 15,657,307 16,600,433 16,945,351 18,058,390 Franchise taxes 1,543,020 1,519,485 1,535,167 1,582,709 1,706,982 Business operation taxes 651,364 462,677 560,252 578,867 645,799 Utility user taxes 3,061,021 2,650,026 3,034,416 3,361,075 3,851,673 Other taxes 409,432 469,328 541,524 582,151 404,168
Unrestricted, motor vehicle in lieu - - - - -
Grants and contributions not
restricted to specific programs - - - - -
Gain on sale of property 77,715 - - - 146,530
Transfers in 1,795,700 1,795,700 1,795,700
Investment income (loss) 1,833,314 2,228,072 182,662 (2,028,209) 2,221,985 Total governmental activities 36,849,363 36,542,042 50,432,697 54,074,017 60,473,751 Business-type activities:

Gain on sale of capital assets - - - - -
Transfers out (1,795,700) (1,795,700) (1,795,700)
Investment income 254,365 281,857 135,094 (10,565) 638,544 Total business-type activities 254,365 281,857 (1,660,606) (1,806,265) (1,157,156) Total primary government $ 37,103,728 $ 36,823,899 $ 48,772,091 $ 52,267,752 $ 59,316,595 Changes in net position, before
special and extraordinary item
Governmental activities $ 6,886,789 $ 8,803,768 $ 16,911,085 $ 20,827,669 $ 23,898,818 Business-type activities 1,133,265 914,050 (1,132,454) 500,191 588,342 Special item - - - - -
Extraordinary item - - - - -
Changes in net position
Governmental activities $ 6,886,789 $ 8,803,768 $ 16,911,085 $ 20,827,669 $ 23,898,818 Business-type activities 1,133,265 914,050 (1,132,454) 500,191 588,342 Total primary government $ 8,020,054 $ 9,717,818 $ 15,778,631 $ 21,327,860 $ 24,487,160 (accrual basis of accounting)
Fiscal Year
City of Lakewood
Changes in Net Position - Expenses and Program Revenues (Continued) Last Ten Fiscal Years
Source: Department of Administrative Services, City of Lakewood 171
2014 2015 2016 2017 2018
General fund:

Nonspendable 2,670,747 $ $ 3,334,102 $ 9,007,179 $ 9,242,133 $ 9,614,693 Restricted - - - - -
Committed 32,456,408 28,993,127 22,470,125 24,641,778 25,016,682 Assigned 8,738,457 8,784,875 9,060,489 7,941,985 4,573,815 Unassigned 3,640,285 4,737,497 2,545,033 1,388,222 1,721,244 Total general fund $ 47,505,897 $ 45,849,601 $ 43,082,826 $ 43,214,118 $ 40,926,434 All other governmental funds:

Nonspendable 8,537,919 $ $ 10,614,864 $ 7,216,652 $ 7,293,057 $ - Restricted 4,256,020 4,807,418 10,304,699 11,811,420 21,385,895 Unassigned (1,408,079) (834,768) (657,720) (3,223,534) (2,000,042) Total all other governmental funds $ 11,385,860 $ 14,587,514 $ 16,863,631 $ 15,880,943 $ 19,385,853 City of Lakewood
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
Source: Department of Administrative Services, City of Lakewood 172
2019 2020 2021 2022 2023
General fund:

Nonspendable 9,887,493 $ $ 10,088,435 $ 10,333,944 $ 10,562,095 $ 10,869,234 Restricted 617,122 62,478 - - -
Committed 24,952,465 26,389,437 27,296,545 30,913,516 32,671,856 Assigned 4,941,360 4,905,102 4,905,102 20,357,986 33,777,497 Unassigned 2,182,964 1,306,735 10,327,717 2,535,221 4,094,060 Total general fund $ 42,581,404 $ 42,752,187 $ 52,863,308 $ 64,368,818 $ 81,412,647 All other governmental funds:

Nonspendable - $ $ - $ - $ - $ -
Restricted/Committed 23,637,463 27,025,084 32,367,386 37,715,646 40,639,771 Unassigned (2,813,850) (2,942,067) 2,228,398 (363,859) (184,691) Total all other governmental funds $ 20,823,613 $ 24,083,017 $ 34,595,784 $ 37,351,787 $ 40,455,080 City of Lakewood
Fund Balances of Governmental Funds (Continued)
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
Source: Department of Administrative Services, City of Lakewood 173
2014 2015 2016 2017 2018
Revenues:

Taxes 26,076,260 $ $ 26,285,474 $ 28,512,153 $ 27,428,381 $ 27,840,342 Licenses and permits 860,267 1,236,029 1,305,394 1,271,711 1,213,898 Fines and forfeitures 794,905 800,988 792,042 726,158 803,671 Investment income, rents and concessions 1,229,344 1,348,984 1,579,999 1,628,636 1,549,043 From other agencies 11,732,076 12,262,584 13,040,289 16,801,522 21,529,691 Current service charges 7,354,833 7,603,770 7,820,247 7,676,870 7,727,896 Other 1,209,438 3,883,093 1,319,267 1,332,492 1,296,960 Total revenues 49,257,123 53,420,922 54,369,391 56,865,770 61,961,501 Expenditures:

Current:

General government 7,198,445 10,121,711 7,469,038 7,598,738 7,775,703 Public safety 12,622,353 13,279,510 14,035,382 13,957,135 14,643,744 Transportation 4,454,458 4,529,295 4,848,633 4,794,659 4,938,424 Community Development 4,822,302 4,550,855 4,877,917 5,266,588 5,448,344 Health and sanitation 4,789,347 4,884,931 4,908,103 5,064,902 5,173,879 Culture and leisure 11,057,389 11,029,303 11,356,886 11,845,756 12,296,334 Capital outlay:

General government - 43,032 60,392 71,163 125,383
Public safety - - 894,527 - -
Transportation 1,412,843 605,487 2,474,885 7,838,438 6,122,168 Community Development - 55,238 85,996 30,256 7,116
Culture and leisure 1,194,657 2,776,202 2,443,762 1,313,659 4,163,308 Debt service:

Owner participation agreement payments - - - - -
Principal retirement - - 31,313 35,564 37,626
Interest and fiscal charges - - 15,143 14,308 12,246
Total expenditures 47,551,794 51,875,564 53,501,977 57,831,166 60,744,275 Excess of revenues over (under)
expenditures 1,705,329 1,545,358 867,414 (965,396) 1,217,226 Other financing sources (uses):

Issuance of lease payable - - 278,121 - -
Transfers in 2,597,281 2,107,215 1,771,504 1,564,966 1,808,209 Transfers out (2,597,281) (2,107,215) (1,771,504) (1,564,966) (1,808,209) Sale of capital assets - - - 114,000 -
Proceeds from lease issuance - - - - -
Total other financing sources (uses) - - 278,121 114,000 - SPECIAL ITEMS:

Transfer to HACoLA - - - - -
Gain(loss) on interest adjustment on the
loans to the Successor Agency - - (1,636,193) - -
Net change in fund balances $ 1,705,329 $ 1,545,358 $ (490,658) $ (851,396) $ 1,217,226 Debt service as a percentage of
noncapital expenditures 0.00% 0.00% 0.10% 0.10% 0.10%
(modified accrual basis of accounting)
Fiscal Year
City of Lakewood
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
Source: Department of Administrative Services, City of Lakewood 174
2019 2020 2021 2022 2023
Revenues:

Taxes 28,653,388 $ $ 27,684,978 $ 41,098,863 $ 47,537,386 $ 49,054,580 Licenses and permits 1,356,208 1,311,229 1,451,338 1,454,830 2,215,035 Fines and forfeitures 877,832 734,643 748,656 743,167 682,411 Investment income, rents and concessions 3,172,061 3,392,410 924,009 (1,204,812) 3,947,978 From other agencies 22,305,483 21,703,390 31,019,031 21,443,120 23,569,755 Current service charges 8,102,123 7,789,524 8,076,990 8,686,921 9,658,905 Other 1,369,123 1,066,017 1,096,083 2,661,610 3,315,184 Total revenues 65,836,218 63,682,191 84,414,970 81,322,222 92,443,848 Expenditures:

Current:

General government 7,928,367 8,241,505 10,841,466 10,940,429 11,443,139 Public safety 15,297,771 15,583,762 16,673,133 17,740,952 18,731,590 Transportation 4,994,979 5,279,004 6,008,396 7,155,428 6,985,144 Community Development 5,576,834 5,544,163 5,772,175 5,583,986 6,686,615 Health and sanitation 5,406,156 5,477,528 5,706,406 6,099,067 6,468,720 Culture and leisure 12,275,314 11,886,225 12,511,815 14,249,773 14,215,149 Capital outlay:

General government 201,076 - 146,425 503,288 657,821
Public safety - - 103,239 14,400 293,083
Transportation 9,821,988 7,137,458 6,675,851 3,868,435 5,560,484 Community Development 24,532 7,414 22,048 205,203 315,945 Culture and leisure 1,994,314 881,672 1,097,870 2,266,698 1,528,898 Debt service:

Owner participation agreement payments - - - - -
Principal retirement 39,807 185,206 191,498 243,609 270,147 Interest and fiscal charges 10,065 28,067 21,775 16,757 12,333 Total expenditures 63,571,203 60,252,004 65,772,097 68,888,025 73,169,068 Excess of revenues over (under)
expenditures 2,265,015 3,430,187 18,642,873 12,434,197 19,274,780 Other financing sources (uses):

Issuance of lease payable 750,000 - - - -
Transfers in 1,571,741 2,213,002 3,593,665 3,854,822 4,302,783 Transfers out (1,571,741) (2,213,002) (1,797,965) (2,059,122) (3,695,351) Sale of capital assets 77,715 - - - 146,530
Proceeds from lease issuance - - - 31,616 118,380
Total other financing sources (uses) 827,715 - 1,795,700 1,827,316 872,342 SPECIAL ITEMS:

Transfer to HACoLA - - - - -
Gain(loss) on interest adjustment on the
loans to the Successor Agency - - - - -
Net change in fund balances $ 3,092,730 $ 3,430,187 $ 20,438,573 $ 14,261,513 $ 20,147,122 Debt service as a percentage of
noncapital expenditures 0.10% 0.41% 0.37% 0.42% 0.44%
(modified accrual basis of accounting)
Fiscal Year
City of Lakewood
Changes in Fund Balances of Governmental Funds (Continued) Last Ten Fiscal Years
Source: Department of Administrative Services, City of Lakewood 175
176
Fiscal Year
Ended June 30 Sales Taxes
Property
Taxes
Franchise
Taxes
Business
Operation
Taxes
Utility User
Taxes Other Taxes Total
2014 15,792,115 $ $ 11,310,210 $ 1,697,405 $ 542,110 $ 3,520,414 $ 322,834 $ 33,185,088 2015 15,890,678 11,831,561 1,757,264 565,441 3,464,047 372,276 33,881,267 2016 15,961,352 12,747,876 1,699,343 1,016,140 3,398,962 378,213 35,201,886 2017 14,133,828 13,039,739 1,430,601 674,880 3,314,095 442,393 33,035,536 2018 14,303,519 13,795,722 1,598,487 650,728 3,163,738 424,144 33,936,338 2019 14,635,987 14,637,510 1,543,020 662,914 3,061,021 409,432 34,949,884 2020 13,555,147 15,657,307 1,519,485 462,677 2,650,026 469,328 34,313,970 2021 26,182,543 15,783,601 1,535,167 1,213,169 3,034,416 541,524 48,290,420 2022 31,256,373 16,945,351 1,582,709 578,867 3,361,075 582,151 54,306,526 2023 31,642,524 18,058,390 1,706,982 645,799 3,851,673 404,168 56,309,536 City of Lakewood
Major Tax Revenue By Sources
Last Ten Fiscal Years
177
2013 2014 2015 2016 2017
Apparel Stores $ 94,682 $ 100,090 $ 104,262 $ 108,777 $ 107,971 General Merchandise 329,626 339,237 335,292 326,877 332,043 Food Stores 44,442 46,198 47,494 47,845 46,073
Eating and Drinking Places 167,347 176,455 189,057 197,497 204,971 Building Materials 63,714 66,480 67,557 73,781 78,690
Auto Dealers and Supplies 100,940 113,843 133,160 154,323 161,696 Service Stations 128,494 123,183 100,673 86,673 93,554
Other Retail Stores 178,010 185,630 190,440 191,145 195,787 All Other Outlets 174,803 188,879 192,439 209,133 220,039 $ 1,282,058 $ 1,339,995 $ 1,360,374 $ 1,396,051 $ 1,440,824 Source: HDL
(in thousands of dollars)
Fiscal Years
City of Lakewood
Taxable Sales by Category
Last Ten Calendar Years
178
2018 2019 2020 2021 2022
Apparel Stores $ 111,925 $ 111,451 $ 69,217 $ 120,346 $ 105,673 General Merchandise 319,083 324,131 285,728 346,224 381,187 Food Stores 46,429 47,825 54,744 53,932 55,399
Eating and Drinking Places 208,381 215,395 166,013 206,461 228,794 Building Materials 91,179 75,681 79,150 79,143 91,515
Auto Dealers and Supplies 130,424 129,173 128,152 176,857 268,377 Service Stations 107,480 102,185 67,688 98,487 135,060
Other Retail Stores 196,820 194,360 162,233 209,987 202,119 All Other Outlets 221,375 244,317 313,924 335,951 366,192 $ 1,433,096 $ 1,444,518 $ 1,326,849 $ 1,627,388 $ 1,834,316 Source: HDL
(in thousands of dollars)
Fiscal Years
City of Lakewood
Taxable Sales by Category (Continued)
Last Ten Calendar Years
179
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
City Sales Tax rate 9.000% 9.000% 9.000% 8.750% 9.500% 9.500% 9.500% 10.250% 10.250% 10.250% City of Lakewood
City Sales Tax Rates
Last Ten Fiscal Years
(Rate at June 30th of Fiscal Year)
Fiscal Years
Source: California State Board of Equalization 180
Fiscal Year Ended
June 30 Secured Nonunitary Unsecured
Taxable Assessed
Value
Total Direct Tax
Rate
2014 7,335,693 258 138,341 7,474,292 0.061%
2015 7,750,838 258 148,398 7,899,494 0.061%
2016 8,155,338 258 142,831 8,298,427 0.060%
2017 8,561,782 258 136,052 8,698,092 0.060%
2018 9,028,557 225 136,546 9,165,328 0.060%
2019 9,513,618 225 141,465 9,655,308 0.060%
2020 9,983,645 226 145,044 10,128,915 0.060%
2021 10,474,857 226 143,457 10,618,540 0.060%
2022 10,913,386 1 129,486 11,042,873 0.060%
2023 11,574,142 1 140,919 11,715,062 0.060%
Note: In 1978, the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum increase of 2%). With few exceptions, property is only re-assessed at the time that it is sold to a new owner. At that point, the new assessed value is re-assessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.

City of Lakewood
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
(in thousands of dollars)
Source: HdL
181
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
City Direct Rates:

City basic rate $ 0.0607 $ 0.0606 $ 0.0604 $ 0.0603 $ 0.0602 $ 0.0602 $ 0.0601 $ 0.0600 $ 0.0600 $ 0.0599 Overlapping Rates:

Los Angeles County - - - - - - - - - -
School Districts 0.3074 0.3716 0.3101 0.4015 0.5274 0.5233 0.6309 0.5320 0.5346 0.5425 Sanitation and Water - - - - - - - - - -
Water Districts 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 Other 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 Total Direct Rate $ 1.3681 $ 1.4357 $ 1.3706 $ 1.4619 $ 1.5876 $ 1.5870 $ 1.6944 $ 1.5955 $ 1.5981 $ 1.6059 Note: In 1978, California voters passed Proposition 13 which sets the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of the School District bonds.

Fiscal Years
City of Lakewood
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
(Rate per $100 of assessed value)
Source: HdL
182
Percent Percent
of Total City of Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Value Value Value
Macerich Lakewood LLC $ 401,046,611 3.42% $ 312,706,060 4.18% B9 MF 12350 DEL AMO LLC 142,228,464 1.21% N/A N/A
Lakewood Manor Apartments LLC 100,072,415 0.85% $ 85,075,614 1.14% Lakewood Regional Medical Center 65,453,677 0.56% $ 50,237,428 0.67% IRIS19 LP 61,599,053 0.53% N/A N/A
Lakewood Marketplace LLC 43,417,714 0.37% $ 37,177,904 0.50% May Company Department Stores 37,876,674 0.32% $ 30,815,497 0.41% Douglas Park Associates IV LLC 37,536,000 0.32% N/A N/A Carwood Center LLC 35,833,553 0.31% N/A N/A
The 5800 Apartment Homes LLC 34,480,566 0.29% N/A N/A
Total 959,544,727 $ 8.18% $ 516,012,503 6.9%
Note: The amounts shown above include assessed value data for both the City and the Redevelopment Agency.

City of Lakewood
Principal Property Taxpayers
Current Year and Nine Fiscal Years Ago
2022 2013
Source: HdL
183
184
Fiscal
Year Taxes Levied Collections
Ended for the Percentage in Subsequent Percentage
June 30 Fiscal Year Amount of Levy Years Amount of Levy 2014 4,109,676 4,017,643 97.76% 92,033 4,109,676 100.00% 2015 4,251,103 4,158,507 97.82% 92,596 4,251,103 100.00% 2016 4,553,569 4,452,399 97.78% 101,169 4,553,568 100.00% 2017 4,613,693 4,456,610 96.60% 157,083 4,613,693 100.00% 2018 4,960,161 4,808,236 96.94% 151,925 4,960,161 100.00% 2019 5,235,071 5,104,779 97.51% 130,292 5,235,071 100.00% 2020 5,406,685 5,286,360 97.77% 120,325 5,406,685 100.00% 2021 5,716,914 5,557,978 97.22% 158,936 5,716,914 100.00% 2022 5,943,809 5,615,340 94.47% 328,469 5,943,809 100.00% 2023 6,496,145 6,158,370 94.80% 337,775 6,496,145 100.00% Collected within the
Fiscal Year of the Levy Total Collections to Date
City of Lakewood
Property Tax Levies and Collections
Last Ten Fiscal Years
Source: Department of Administrative Services, City of Lakewood 185
Fiscal Year Ended June
30 General Obligation Bonds Tax Allocation Bonds
Lease Payable and
Subscription Liabilities
Total Governmental
Activities
2014 - - - -
2015 - - - -
2016 - - 246,808 246,808
2017 - - 211,244 211,244
2018 - - 173,617 173,617
2019 - - 883,811 883,811
2020 - - 698,605 698,605
2021 - - 507,107 507,107
2022 - - 460,465 460,465
2023 - - 423,718 423,718
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.

City of Lakewood
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities
Source: Department of Administrative Services, City of Lakewood 186
Water Revenue
Bonds
Loan Payable to
Water Replacement
District
Lease Payable and
Subscription
Liabilities
Total Business-type
Activities
Total Primary
Government
Percentage of
Personal
Income 1
Debt Per
Capita 1
3,385,206 1,184,881 - 4,570,087 4,570,087 0.19% 56
2,456,517 987,401 - 3,443,918 3,443,918 0.15% 42
- 789,921 1,762,532 2,552,453 2,799,261 0.12% 36
- 592,441 10,494,954 11,087,395 11,298,639 0.47% 143
- 394,961 10,139,347 10,534,308 10,707,925 0.43% 132
- 197,480 9,378,045 9,575,525 10,459,336 0.41% 129
- - 8,594,758 8,594,758 9,293,363 0.34% 116
- - 7,788,848 7,788,848 8,295,955 0.29% 103
- - 6,959,657 6,959,657 7,420,122 0.26% 92
- - 6,521,119 6,521,119 6,944,837 0.22% 87
1 These ratios are calculated using personal income and population for the prior calendar year.

City of Lakewood
Ratios of Outstanding Debt by Type (Continued)
Last Ten Fiscal Years
Business-type Activities
Source: Department of Administrative Services, City of Lakewood 187
188
Total Assessed Valuation $11,715,062,925
Percentage Applicable 1 Outstanding Debt
06/30/23
Estimated Share of
Overlapping Debt
Overlapping Debt:

Metropolitan Water District 0.322 $ 19,215,000 $ 61,872 Cerritos Community College District 7.201 445,232,887 32,061,220 Compton Community College District 2.612 104,371,964 2,726,196 Long Beach Community College District 8.422 589,058,855 49,610,537 ABC Unified School District 10.361 124,137,739 12,861,911 Bellflower Unified School District 28.088 74,495,000 20,924,156 Long Beach Unified School District 8.420 1,779,754,702 149,855,346 Paramount Unified School District 9.306 180,935,682 16,837,875 Total overlapping debt $ 3,317,201,829 $ 284,939,113
City Direct Debt:

Lease payable 100.000% 423,718 423,718
Total Direct and Overlapping Debt $ 285,362,831
City of Lakewood
Direct and Overlapping Debt
As of June 30, 2023
1 For debt repaid with property taxes, the percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentages were estimated by determining the portion of another governmental unit's taxable assessed value that is within the city's boundaries and Notes: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the city. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of Statistical. This process recognizes that, when considering the city's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident—and therefore responsible for repaying the debt—of each overlapping government.

Source: HdL
189
2014 2015 2016 2017 2018
Assessed valuation (In thousands) $ 7,474,292 $ 7,899,494 $ 8,298,427 $ 8,698,092 $ 9,165,328 Debt limit percentage 15% 15% 15% 15% 15%
Debt limit (In thousands) 1,121,144 1,184,924 1,244,764 1,304,714 1,374,799 Total net debt applicable to the limit:

General obligation bonds (In thousands) - - - - -
Legal debt margin (In thousands) $ 1,121,144 $ 1,184,924 $ 1,244,764 $ 1,304,714 $ 1,374,799

0.0% 0.0% 0.0% 0.0% 0.0%
The City of Lakewood has no general bonded indebtedness.

Note: Section 43605 of the Government Code of the State of California limits the amount of indebtedness for public improvements to 15% of the assessed valuation of all real and personal property of the City.

Total debt applicable to the limit as a
percentage of debt limit
City of Lakewood
Legal Debt Margin Information
Last Ten Fiscal Years
Fiscal Years
Source: HdL
190
2019 2020 2021 2022 2023
Assessed valuation (In thousands) $ 9,655,309 $ 10,128,915 $ 10,618,540 $ 140,919 $ 11,715,062 Debt limit percentage 15% 15% 15% 15% 15%
Debt limit (In thousands) 1,448,296 1,448,296 1,592,781 - 1,757,259 Total net debt applicable to the limit:

General obligation bonds (In thousands) - - - - -
Legal debt margin (In thousands) $ 1,448,296 $ 1,448,296 $ 1,592,781 $ - $ 1,757,259

0.0% 0.0% 0.0% 0.0% 0.0%
The City of Lakewood has no general bonded indebtedness.

Total debt applicable to the limit as a
percentage of debt limit
Fiscal Years
City of Lakewood
Legal Debt Margin Information (Continued)
Last Ten Fiscal Years
Source: HdL
191
Fiscal Year Less: Net
Ended Water Operating Available
June 30 Revenue Expenses Revenue Principal Interest Coverage 2014 11,712 6,927 4,785 645 172 5.86
2015 10,311 7,826 2,485 670 148 3.04
2016 10,931 7,849 3,082 687 67 4.09
2017 10,873 7,280 3,593 233 45 12.92
2018 13,004 9,589 3,415 233 38 12.60
2019 13,355 10,473 2,882 245 32 10.40
2020 12,869 10,112 2,757 251 27 9.92
2021 13,965 8,313 5,652 257 20 20.40
2022 13,787 9,286 4,501 271 7 16.19
2023 13,497 9,479 4,018 - - 100.00
City of Lakewood
Pledged-Revenue Coverage
Last Ten Fiscal Years
(In thousands)
Debt Service
Water Revenue Bonds
Notes: Details regarding the city's outstanding debt can be found in the notes to the financial statements. Operating expenses do not include interest, depreciation, or amortization expenses.

Source: Department of Administrative Services, City of Lakewood 192
Fiscal Year
Ended Tax
June 30 Increment Principal Interest Coverage
2014 1,436 1,155 281 1.00
2015 1,435 1,210 225 1.00
2016 1,430 1,265 165 1.00
2017 1,432 1,330 102 1.00
2018 1,425 1,390 35 1.00
2019 - - - -
2020 - - - -
2021 - - - -
2022 - - - -
2023 - - - -
Tax Allocation Bonds
Debt Service
City of Lakewood
Pledged-Revenue Coverage (Continued)
Last Ten Fiscal Years
(In thousands)
Notes: Details regarding the city's outstanding debt can be found in the notes to the financial statements. Operating expenses do not include interest, depreciation, or amortization expenses.

Source: Department of Administrative Services, City of Lakewood 193
Personal Per
Income Capita
Calendar (thousands Personal Unemployment
Year Population (1) of dollars) (2) Income (2) Rate (3) 2013 81,224 2,388,960 29,412 4.9%
2014 81,261 2,363,232 29,082 6.4%
2015 78,471 2,426,233 30,918 5.2%
2016 79,272 2,406,040 30,351 4.0%
2017 81,179 2,490,791 30,682 3.3%
2018 81,352 2,579,207 31,704 4.4%
2019 79,919 2,743,438 34,327 4.1%
2020 80,218 2,836,725 35,362 12.2%
2021 80,876 2,909,229 35,971 8.3%
2022 80,154 3,184,601 39,731 4.3%
City of Lakewood
Demographic and Economic Statistics
Last Ten Calendar Years
Sources: Hdl/Bureau of Labor Statistics
194
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
City Administration 31 30 30 30 29 29 29 13 13 16
Communications 12 11 7
City Clerk 2 2 2 2 2 2 2 2 2 5
Administrative Services 21 20 21 21 20 20 20 23 22 21
Community Development 15 14 14 14 14 14 13 14 14 15
Public Safety 7 7 7
Public Works 31 31 32 32 32 32 32 33 30 33
Recreation and Community Services 60 62 62 62 61 61 58 59 58 60 Water Resources 19 19 19 19 17 17 17 17 15 17
Total 179 178 180 180 175 175 171 180 172 181
Note: Communications and Public Safety are new departments in FY 20/21. They split from the Administration department.

Division
Fiscal Years
City of Lakewood
Full-Time City Employees by Function
Last Ten Fiscal Years
Source: Department of Administrative Services, City of Lakewood/Department of Human Resources , City of Lakewood 195
2014 2015 2016 2017 2018
Public works:

Street resurfacing (miles) 1 - 1 - -
Recreation and community services:

Number of recreation classes 1,812 1,615 1,931 1,711 1,924 Number of facility rentals 7,473 8,259 7,919 5,838 1,577** Water
New connections 11 6 2 7 4
Number of consumers 20,469 20,489 20,481 20,180 20,196
Average daily consumption
(thousands of gallons) 7,549 6,857 5,887 6,262 6,050
Community development
Number of building permits issued * 3,107 3,457 4,408 4,051 3,986 *Includes both residential and commercial permits.

Fiscal Years
City of Lakewood
Operating Indicators by Function
Last Ten Fiscal Years
Source: City of Lakewood
196
2019 2020 2021 2022 2023
Public works:

Street resurfacing (miles) 3 - 0.4 9.4 9.0
Number of recreation classes 1,888 1,355 3,608 1,365 1,397 Number of facility rentals 1,715** 1,446** 539*** 1,356 1,402 Water
New connections 9 7 8 14 34
Number of consumers 20,148 20,255 20,159 20,123 20,178
Average daily consumption
(thousands of gallons) 5,954 6,014 5,988 5,986 5,667
Community development
Number of building permits issued * 3,765 3,396 3,960 4,111 4,953 *Includes both residential and commercial permits.
**In November 2016 the RCS Department initiated a transition from CLASS facility booking software to the ActiveNet online system. For the duration of 2017 to date, inclusive of the 2017/18 fiscal year, the ActiveNet system has represented blocks of facility reservations for multiple dates as one event. The CLASS system previously represented a block of facility reservations for multiple dates as many events- i.e. one date equals one event. This is the reason for the significant decline in faculty rentals from FY 2017 to FY 2018. *** Went significantly down due to COVID-19 pandemic.

Recreation and community services:

Fiscal Years
City of Lakewood
Operating Indicators by Function (Continued)
Last Ten Fiscal Years
Source: City of Lakewood
197
2014 2015 2016 2017 2018
Public works:

Streets (miles) 196 196 196 196 196
Streetlights 6,654 6,654 6,654 6,654 6,654
Number of recreation facilities 13 13 13 13 13
Acreage of facilities 189.0 189.0 189.0 189.0 189.0
Number of pools 2 2 2 2 2
Water
Water mains (miles) 195.00 195.00 195.00 195.00 195.00
Wastewater
Sewers (miles) 167.00 167.00 167.00 167.00 167.00
Recreation and community services:

City of Lakewood
Capital Assets Statistics by Function
Last Ten Fiscal Years
Fiscal Years
Source: City of Lakewood
198
2019 2020 2021 2022 2023
Public works:

City of Lakewood
Capital Assets Statistics by Function (Continued)
Last Ten Fiscal Years
Fiscal Years
Source: City of Lakewood
199
200

COUNCIL AGENDA
December 12, 2023
TO: The Honorable Mayor and City Council
SUBJECT: Approval of Expense Reimbursement Agreement with Central Basin Municipal Water District

INTRODUCTION
California’s Proposition 84 (Prop 84), the Safe Drinking Water, Water Quality and Supply, Flood Control, River and Coastal Protection Act of 2006, was passed by California voters in the November 2006 general election. Central BasinMunicipal Water District (the District)is permitted to grant Prop 84 funding in their service area to purchase and install weather-based irrigation controllers and irrigation flow regulators to enhance water efficiency on city parks.

STATEMENT OF FACT
The District notified the cities in its service area, which includes Lakewood, of an available grant opportunity for water efficiency projects. In a grant submission to the District, staff proposed an irrigation project to purchase and install smart irrigation systems for San Martin, Boyar and Del Valle parks. The District approved Lakewood’s grant submission and has prepared an agreement indicating that the District will reimburse the city up to $110,000 for the proposed water efficiency project at three city parks.

Environmental Resources Division staff will coordinate the project, which will include project management and the purchase and installation ofirrigation controllers and corresponding irrigation components. Per the District’s agreement, the project must be completed by March 15, 2024, and staff is able to schedule and complete the work by the provided due date.

RECOMMENDATION
It is the recommendation of staff that the City Council approve and authorize the mayor to sign the Expense Reimbursement Agreement with Central Basin Municipal Water District for an amount up to $110,000 to complete water efficiency projects at San Martin, Boy^ Fand Del Valle
parks.

Valarie Frost, Director VP
Recreation and Community Services
Thaddeus McCormack
City Manager

3.2 PROPOSITION 84
Expense Reimbursement Agreement
This Expense Reimbursement Agreement (this “Agreement”!dated as of November 16 2023, is made by Central Basin Municipal Water District (the District) and agreed upon by the District and the City of Lakewood (the City).

Prop 84 allows the District to complete water efficiency projects throughout its service area which include devices such as high-efficiency toilets (tanks and flushometers), zero water and ultra-low water urinals, laminar flow restrictors, large rotary nozzles, rotating nozzles for spray heads, weather-based irrigation controllers, central computer irrigation controllers, and flow regulators.

Agreement:

The City will be reimbursed up to $110,000 for their water efficiency projects that will be funded through Prop 84 for labor and their choice of weather-based irrigation controllers, central computer irrigation controllers, and flow regulators.

Requirements for reimbursement include:

1. Participation in a water audit,

2. Completion of the project scope listed below,

3. Provide comprehensive reporting,

4. Provide a justification letter for not participating in a request for proposal process, and

5. Project completion by March 15, 2024.

1. Water Audit
The District will conduct a water audit among all of its purveyors and the City will submit information on its water efficiency project to participate.

2. Project Scope
The City's Irrigation Project includes a total water-efficient overhaul by installing Cal Sense smart irrigation systems at the following three parks to reduce future water use:

1. San Martin Park

2. Boyar Park
3 Del Valle Park
Irrigation Installation
The irrigation improvements of the project propose City staff installing nine irrigation controllers, 37 irrigation components, including master valves, flow meters, antennas and trench an estimated 1,500 linear feet for the installation of irrigation wire. The work is estimated to take 8 working days (overtime) totaling 134 hours excluding lead time for materials purchase. The 134 hours of overtime allows a small three-person team to work during trenching and installing master valves. The connection and installation of irrigation components will be completed by the City’s Irrigation Repair Technician and Park Maintenance Lead Worker.

City staff received pricing for the irrigation parts from Site One Landscape Supply. All material is available. Staff also requested pricing from JHM Landscape and Sprinkler Supply and Imperial Sprinkler Supply.

Schedule
The project will begin shortly after funding is awarded and will be completed by March 15, 2024.

Budget
The project cost is estimated at $99,095.40, with a 5% contingency of $4,954.77 for a total project cost of $104,050.17. Additionally, City staff recommends completing this overtime work to ensure that the project does not affect current projects and daily work schedules.

3. Reporting
City staff will provide documentation which includes invoices, staff timesheets, plans, photos, updates, materials used, a budget breakdown, and all other information related to the project. The District and the City will have meetings on an as-needed basis.

To comply with quarterly reporting requirements, formal updates will be provided on or before December 18, 2023, and March 15, 2024.

The City will also provide the District with an estimate of the yearly water savings in acre-feet for each park.

4. Justification Letter
To bypass the request for proposal process required by the Prop 84 grant, the City must write a justification letter for the reasoning for their Sole Source Agreement and reason why they should be able to bypass the request for proposal process.

5. Project Completion
Installation and reporting must be complete and submitted by March 15th, 2024.

Reimbursement:

The City will be reimbursed for all project costs within 6 months of the project completion date. This time frame allows for the reporting submittals to get to the Department of Water Resources which is funding Prop 84, to reimburse Gateway Management Authority which usually takes 2-3 months, and pass through the District which may take 4-8 weeks.

By signing below, the City understands that it is obligated to pay any funding amounts if any portion of the project goes unfulfilled at the time of the projection completion date.

This agreement is effective once signed by the District and the City and continues through June 30, 2024, or until a replacement agreement is approved and implemented by the District and signed by the City, whichever comes first. Funding may not be applied retroactively. This funding authorization is effective only for the designated period or until a new authorization is received and approved by the District.

By signing, the District and the City agree to these terms.

Central Basin Municipal Water District
November 16th. 2023
Authorizing Signature General Manager/Designee Date
PARTICIPANT AGENCY: City of Lakewood
Authorizing Signature General Manager/Designee Date

COUNCIL AGENDA
December 12, 2023
TO: The Honorable Mayor and City Council
SUBJECT: Extension of Agreement between the City of Lakewood and Care Solace, Inc.

INTRODUCTION
At its June 27, 2023 meeting, the City Council approved a pilot program with Care Solace, Inc. to provide mental health care coordination services to all City of Lakewood residents. The six-month pilot program commenced on August 1, 2023 and is set to expire on January 31, 2024. This report evaluates the program’s effectiveness, and if the City Council desires, the agreement can be extended until June 30, 2024.

STATEMENT OF FACT
Care Solace is an online resource with a live 24/7 concierge meant to assist individuals in finding local mental health related programs, substance use treatment providers and counseling services.

They serve as the central hub of mental health care by helping people navigate through the confusing and bureaucratic maze involved with both public and private mental health providers.

In implementing the program, city staff worked with Care Solace to train front line staff and promoting the free program to community members. Residents can access the program multiple ways. First is via a custom Care Solace city website, where community members can access the network anonymously and initiate the care. There is also a way to call for people who do not have Internet access. As mentioned above, community members can also access the program through our city employees. All of these contact methods lead to what is called a “Warm Handoff,” where once the person in need of help is put in the system, Care Solace takes over. Their team, based on the request, will coordinate with their service providers in their network to match the person with the provider. They will also be the ones to set up appointments, follow-ups and other care as necessary. This happens whether or not the person has insurance. This service removes one of the largest barriers to getting effective mental health care by eliminating the research and guesswork on the part of the requester.

To promote the service, the city has been spreading the message through different channels, including the Care Solace Lakewood website that was mentioned above. Staff also posts regular social media and Lakewood Connect e-Magazine articles. The resource is also promoted and mentioned at city events and presentations were made to community partners and stakeholders.

3.3 Care Solace Agreement Extension
December 12, 2023

Page 2 ends

Lakewood City CouncilDecember 12, 2023

Lakewood City Council
December 12, 2023