Lakewood City Council
January 28, 2025

AGENDA

REGULAR CITY COUNCIL MEETING

COUNCIL CHAMBERS
5000 CLARK AVENUE

LAKEWOOD, CALIFORNIA
January 28, 2025, 7:30 p.m.

CALL TO ORDER 7:30 p.m.

INVOCATION: Pastor Terence Brooks, One Church Lakewood
PLEDGE OF ALLEGIANCE: Scout Pack 21
ROLL CALL: Mayor Todd Rogers
Vice Mayor Cassandra Chase
Council Member David Arellano
Council Member Steve Croft
Council Member Jeff Wood
ANNOUNCEMENTS AND PRESENTATIONS:

Presentation by Captain Dan Holguin, Lakewood Sheriff’s Station, Regarding Quarterly Public Safety Report
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 - It is recommended City Council approve Minutes of the Meetings held November 12, 2024, and January 14, 2025
RI-2 PERSONNEL TRANSACTIONS - It is recommended City Council approve report of personnel transactions.

RI-3 REGISTERS OF DEMANDS - It is recommended City Council approve registers of demands.

RI-4 CITY COUNCIL COMMITTEES’ ACTIVITIES - It is recommended City Council receive and file the report.

RI-5 MONTHLY REPORT OF INVESTMENT TRANSACTIONS - DECEMBER 2024 - It is recommended City Council receive and file the report.

RI-6 REASSIGNMENT OF SUNSTONE MANAGEMENT, INC. SERVICE AGREEMENT - It is recommended City Council approve the reassignment agreement.

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
January 28, 2025

ROUTINE ITEMS: - Continued
RI-7 APPROVAL OF AGREEMENT AMENDMENT WITH SOUTHWEST PATROL, INC.

INCREASING NUMBER OF PRIVATE SECURITY GUARDS TO IMPLEMENT DAYTIME PATROLS - It is recommended City Council approve an agreement amendment with Southwest Patrol, Inc. to increase the number of unarmed private security guards to six and to implement daytime patrols, for a term commencing January 30, 2025 through June 30, 2025, and authorize the City Manager to sign the agreement in a form as approved by the City Attorney.

LEGISLATION:

2.1 SECOND READING AND ADOPTION OF ORDINANCE NO. 2025-1; REGARDING SHOPPING CARTS - It is recommended City Council adopt proposed ordinance.

REPORTS:

3.1 ANNUAL CITY INVESTMENT POLICY AND QUARTERLY SCHEDULE OF INVESTMENTS – AS OF DECEMBER 31, 2024 - Staff recommends City Council adopt the attached Investment Policy and receive and file the Quarterly Schedule of Investments for December 31, 2024.

3.2 REVIEW OF ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR) FOR YEAR ENDED JUNE 30, 2024, AND PRESENTATION OF GOVERNMENT FINANCE OFFICERS ASSOCIATION (GFOA) AWARD - Staff recommends City Council receive and file the ACFR for year ended June 30, 2024, and accept the GFOA Certificate of Achievement for Excellence in Financial Reporting award for fiscal year ending June 30, 2023.

AGENDA

LAKEWOOD HOUSING SUCCESSOR AGENCY

1. REGISTER OF DEMANDS - It is recommended Housing Successor Agency approve registers of demands.

ORAL COMMUNICATIONS:

ADJOURNMENT

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

DIVIDERSHE

COUNCIL AGENDA
January 28, 2025
TO: The Honorable Mayor and City Council
SUBJECT: Report of Personnel Transactions
Title Schedule
Effective
Name Date

1. FULL-TIME EMPLOYEES
A. Appointments
None
B. Changes
None
C. Separations
Michelle Santiago Planning Technician 16B 01/10/2025

PART-TIME EMPLOYEES
A. Appointments
Michael Quijada Community Services Specialist B 01/07/2025 B. Changes
Kyle Ramirez Maintenance Trainee I B to
Maintenance Trainee II B 01/19/2025
C. Separations
Roberto Aguilera-Rodriguez Maintenance Trainee I B 01/09/2025 Brandon Kojaku Maintenance Trainee II B 01/16/2025
^fCaddeusMcComack^^^
City Manager
RI-2

CITY OF LAKEWOOD
FUND SUMMARY 1/16/2025
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 302,301.39
1030 CDBG CURRENT YEAR 1,195.58
1090 LAKEWOOD EQUESTRIAN CENTER 718.56
1500 MISC-SPECIAL REVENUE FUND 200,00
1623 LA CNTY MEASURE W-REGIONAL 2,835,00
3001 CAPITAL IMPROV PROJECT FUND 11,974.50
3015 ROAD MAINTC & REHAB ACCT 62,345.53
3060 PROPOSITION "A" 11,200.00
3070 PROPOSITION "C" 134.98
5010 GRAPHICS AND COPY CENTER 1,464.80
5020 CENTRAL STORES 5,145.72
5030 FLEET MAINTENANCE 2,176.40
7500 WATER UTILITY FUND 122,102.89
8020 LOCAL REHAB LOAN 25,540.27
8030 TRUST DEPOSIT 200,00
549,535.62
Council Approval
Date City Manager
Attest
City Clerk Director of Finance andAdministrative Services RI-3

CITY OF LAKEWOOD

SUMMARY CHECK REGISTER
CHECK

DATE VENDOR NAME
CHECK
AMOUNT
01/15/2025 MARK, ADAM 1,764.00
01/15/2025 ALL CITY MANAGEMENT SERVICES INC 12,723.44
01/15/2025 AMAZON CAPITAL SERVICES INC 1,699.61
01/15/2025 AVENU STR IP LLC 4,500.00
01/15/2025 BRENNTAG PACIFIC INC 1,609.90
01/15/2025 CAL STATE AUTO PARTS INC 104.39
01/15/2025 CALIF. STATE DISBURSEMENT UNIT 680,76
01/15/2025 SEMA INC 627.01
01/15/2025 CHRISTIAN JAMES 780.00
01/15/2025 CINTAS CORPORATION 375.08
01/15/2025 CITY & COUNTY ENGINEER'S ASSOC 200.00
01/15/2025 CJ CONCRETE CONSTRUCTION INC 62,345.53
01/15/2025 COMMUNITY FAMILY GUIDANCE CTR 583.33
01/15/2025 CORELOGIC INC 86.75
01/15/2025 CPS HR CONSULTING 1,323.05
01/15/2025 D&J INTERNATIONAL INC 1,593.11
01/15/2025 DAHLIN GROUP INC 26,463.06
01/15/2025 DANIEL’S TIRE SERVICE INC 56.90
01/15/2025 DUNRITE PEST CONTROL INC 375.00
01/15/2025 EEC ACQUISITION LLC 1,365.17
01/15/2025 FRONTIER CALIFORNIA INC 2,076.72
01/15/2025 . GANAHL LUMBER COMPANY 3,535.57
01/15/2025 HOME DEPOT 378.22
01/15/2025 JHM SUPPLY INC 1,355.84
01/15/2025 JONES RICHARD D. A PROF LAW CORP 3,545.02
01/15/2025 KIDSGUIDE INC 550.00
01/15/2025 LAGERLOF. LLP 55.00
01/15/2025 LAKEWOOD. CITY OF 200.00
01/15/2025 LANDCARE HOLDINGS INC 8,315.00
01/15/2025 LIFTECH ELEVATOR SERVICES INC 469.00
01/15/2025 LIVAS GILBERTA 1,575.00
01/15/2025 LA COUNTY DEPT OF PUBLIC WORKS 92,694.28
01/15/2025 MAINTEX INC 313.44
01/15/2025 MC MASTER-CARR SUPPLY CO 181.10
01/15/2025 NATIONAL PACIFIC ISLANDER EDUCATOR 100.00
01/15/2025 NICHOLLS CONSULTING INC 250.00
01/15/2025 OC VACUUM INC 2,835.00
01/15/2025 ODP BUSINESS SOLUTIONS LLC 72.94
01/15/2025 ORKIN SERVICES OF CALIFORNIA INC 112.50
01/15/2025 PHASE II SYSTEMS INC 2,986.79
01/15/2025 PATHWAYS VOLUNTEER HOSPICE 583.33
01/15/2025 US BANCORPASSET MANAGEMENT INC 3,063.83
01/15/2025 RAYVERN LIGHTING SUPPLY CO INC 460.34
01/15/2025 RUIZ. TAWNY 207.25

CITY OF LAKEWOOD

SUMMARY CHECK REGISTER
CHECK

DATE VENDOR NAME
CHECK
AMOUNT
01/15/2025 S& J SUPPLY CO 2,114.78
01/15/2025 S.T.E.A.M. 29,234.87
01/15/2025 BARRY SANDLER ENTERPRISES 478.94
01/15/2025 SECURITAS TECHNOLOGY CORPORATION 1,207.28
01/15/2025 SHUSTER ADVISORY GROUP LLC 2,400.00
01/15/2025 SIGNAL HILL AUTO ENTERPRISES INC 308.26
01/15/2025 SITEONE LANDSCAPE SUPPLY LLC 361.73
01/15/2025 SOUTHERN CALIFORNIA EDISON CO 13,847.35
01/15/2025 SOUTHERN CALIFORNIA EDISON CO 143.59
01/15/2025 SOUTHERN CALIFORNIAGAS CO 367.77
01/15/2025 CHARTER COMMUNICATIONS HOLDINGS LLC 6,144.39 01/15/2025 SPICERS PAPER INC 837.79
01/15/2025 STANDARD INSURANCE CO UNIT 22 11,476.42
01/15/2025 STATE WATER RESOURCES CONTROLBOARD 88,269.12 01/15/2025 ARIZONA MACHINERY LLC 1,647.34
01/15/2025 SUNBELT RENTALS INC 2,391.73
01/15/2025 SUPERIOR COURT OF CALIFORNIA 9,592.50
01/15/2025 SUPERIOR COURT OF CALIFORNIA 6,568.00
01/15/2025 TALEWISE LLC 400.00
01/15/2025 TGIS CATERING SVCS INC 90.00
01/15/2025 THE SALVATION ARMY 27,202.50
01/15/2025 USPS-POC . 25,000.00
01/15/2025 VERITIV OPERATING COMPANY 414.30
01/15/2025 CELLCO PARTNERSHIP 4,881.63
01/15/2025 WATER SYSTEM SERVICES LLC 195.00
01/15/2025 WAXIE ENTERPRISES INC 1,131.03
01/15/2025 WESTERN WATER WORKS SUPPLY CO 14,487.55
01/15/2025 WILBER. BILL 210.00
01/15/2025 WILLDAN ASSOCIATES 11,974.50
01/15/2025 WILLIAMS, MICHELLE 296.00
01/15/2025 WOOD, JEFF 0.01
01/15/2025 WORLDWIDE RECOVERY SYSTEMS INC 746.00
01/15/2025 XAVUS SOLUTIONS. LLC 11,200.00
01/15/2025 YBARRA. ALBERT JR 375.00
01/15/2025 AUSTIN. MAEVE 23.07
01/15/2025 BALTICA HOMES 3,440.27
01/15/2025 BUAN. ELWYN 150.00
01/15/2025 DURAN. ALEJANDRO 150.00
01/15/2025 FRIENDS OF LAKEWOOD LIBRARIES 10.00
01/15/2025 GEARY. MARIA 90.00
01/15/2025 GUNAWARDENA. MAHASEN 150.00
01/15/2025 MORENO. HELEN 150.00
01/15/2025 PENA. RONALD 435.00
01/15/2025 PEREZ. MARIA 250.00

CITY OF LAKEWOOD

SUMMARY CHECK REGISTER
CHECK

DATE VENDOR NAME
CHECK
AMOUNT
01/15/2025 ROBINSON. YALINDA 250.00
01/15/2025 RUHLOW. DEBBIE 5.00
01/15/2025 SEREBOFF. JACQUELINE 92.20
01/15/2025 SOCALROOFING SOLUTIONS 18,650.00
01/15/2025 STRAIGHT GATE FENCE COMPANY 3,450.00
01/15/2025 SUNRUN INSTALLATION SERVICES. INC 299.91
01/15/2025 WINWOOD. KEVIN 150,00
01/15/2025 WONG, HERMAN 150.00
01/15/2025 ARELLANO DAVID 0.01
01/15/2025 CAMACHO, ANDREW 0.01
01/15/2025 CARRION, LUIS 0.01
01/15/2025 CASTELLO-CHASE, CASSANDRA 0.01
01/15/2025 COPELAND, VERONICA 0.01
01/15/2025 FRANCO, CELESTE 0.01
01/15/2025 FROST, VALARIE A 0.01
01/15/2025 JENKINS, MICHAEL 0.01
01/15/2025 MONTGOMERY-DILLARD, SANDRA 0.01
01/15/2025 ROGERS, TODD 0.01
01/15/2025 SANCHEZ, KAITLIN 0.01
01/15/2025 SCHULTZ, ISABELLE 0.01
01/15/2025 THE TECHNOLOGY DEPOT 472.41
Total: 549,535.62

CITY OF LAKEWOOD
FUND SUMMARY 1/23/2025
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 1,799,671.88
1336 STATE COPS GRANT 16,666.66
1500 MISC-SPECIAL REVENUE FUND 6,134.39
1621 LA CNTY MEASURER 4,559.20
1622 LA CNTY MEASURE M 34,992.00
1744 LA COUNTY REGIONAL OPEN SPACE 26,234.08
3001 CAPITAL IMPROV PROJECT FUND 318.20
3070 PROPOSITION "C" 611.54
5020 CENTRAL STORES 892.04
5030 FLEET MAINTENANCE 7,747.35
7500 WATER UTILITY FUND 111,096.98
8020 LOCAL REHAB LOAN 1,601.00
8030 TRUST DEPOSIT 34,740,70
2,045,266.02
Council Approval
Date City Manager
Attest
City Clerk Director of Finance andAdministrative Services

CITY OF LAKEWOOD

SUMMARY CHECK REGISTER
CHECK

DATE VENDOR NAME
CHECK
AMOUNT
01/23/2025 AMAZON CAPITAL SERVICES INC 41.88
01/23/2025 ARDURRA GROUP INC 14,996.72
01/23/2025 BIG STUDIO INC 266.81
01/23/2025 BRENNTAG PACIFIC INC 1,509.18
01/23/2025 CAL STATE AUTO PARTS INC 297.29
01/23/2025 CALIFORNIA MOBILITYAND PARKING ASSOCIATION 250.00 01/23/2025 CALIFORNIA STATE DEPT OF JUSTICE 544.00
01/23/2025 CINTAS CORPORATION 30.00
01/23/2025 CINTAS CORPORATION 72.47
01/23/2025 CINTAS CORPORATION 199.50
01/23/2025 DATATICKET INC 205.58
01/23/2025 DUNRITE PEST CONTROL INC 230.00
01/23/2025 GOVERNANCE SCIENCES GROUP INC 9,900.00
01/23/2025 GALLS PARENT HOLDINGS LLC 34.84
01/23/2025 GLASBY MAINTENANCE SUPPLY CO 479.85
01/23/2025 GRAINGER WWINC 225.04
01/23/2025 HARA M LAWNMOWER CENTER 1,047.18
01/23/2025 HAWK. TRUDY IFAHTIEMJ 95.55
01/23/2025 HERMAN. LINDA 300.00
01/23/2025 HIRSCH & ASSOCIATES INC 1,303.00
01/23/2025 HOME DEPOT 1,085.16
01/23/2025 JHM SUPPLY INC 998.37
01/23/2025 JONES RICHARD D. A PROF LAW CORP 18,921.55
01/23/2025 KOSMONT & ASSOCIATES INC 1,090.70
01/23/2025 LAKEWOOD CHAMBER OFCOMMERCE 2,500.00
01/23/2025 LONG BEACH CITY GAS & WATER DEPT 457.32
01/23/2025 LONG BEACH. CITY OF 1,055.10
01/23/2025 LOS ANGELES CO CLERK 75.00
01/23/2025 LOS ANGELES CO SHERIFFS DEPT 1,084,629.40
01/23/2025 LA COUNTY DEPT OF PUBLIC WORKS 47,991.29
01/23/2025 MALLORY SAFETYAND SUPPLY LLC 642.49
01/23/2025 LEON MANUEL 600.00
01/23/2025 MEJIA. EDMUNDO 55.13
01/23/2025 O'REILLYAUTOMOTIVE STORES INC 454.76
01/23/2025 ODP BUSINESS SOLUTIONS LLC 267.81
01/23/2025 NICK BARBIERI TRUCKING LLC 2,387.21
01/23/2025 ORTCO INC 33,220.47
01/23/2025 REGIONAL GOVERNMENT SERVICES AUTHORITY 6,644.10 01/23/2025 S & J SUPPLY CO 1,131.52
01/23/2025 SALCEDALUIS 150.00
01/23/2025 SOUTHERN COUNTIES OIL CO 3,259.17
01/23/2025 SECRETARY OF STATE 1.00
01/23/2025 SECTRAN SECURITY INC 234.33
01/23/2025 SIEGEL. THEODORE 150.00
Page I of 2

CITY OF LAKEWOOD

SUMMARY CHECK REGISTER

CHECK CHECK

DATE VENDOR NAME AMOUNT
01/23/2025 SMART & FINAL INC 39.73
01/23/2025 MWB COPY PRODUCTS INC 115.76
01/23/2025 SOUTHERN CALIFORNIA EDISON CO 65,452.31
01/23/2025 SOUTHERN CALIFORNIA GAS CO 4,844.19
01/23/2025 SOUTHLAND INDUSTRIES 16,744.00
01/23/2025 SOUTHWEST PATROL INC 20,336.00
01/23/2025 SUNBELT RENTALS INC 883.08
01/23/2025 T2 SYSTEMS INC 95.00
01/23/2025 TETRA TECH INC 14,271.75
01/23/2025 TGIS CATERING SVCS INC 2,418.69
01/23/2025 THE SALVATION ARMY 26,325.00
01/23/2025 TURF STAR 24.14
01/23/2025 US POSTAL SERVICE 4,600.00
01/23/2025 HD SUPPLY INC 300.96
01/23/2025 WATERLINE TECHNOLOGIES INC 5,863.02
01/23/2025 WECK ANALYTICAL ENVIRONMENTAL SERVICES 662.00 01/23/2025 WILLDAN ASSOCIATES 43,737.90
01/23/2025 WORLDWIDE RECOVERYSYSTEMS INC 25,275.60
01/23/2025 YOUNG CHAMPIONS RECREATION PROGRAMS INC 1,911.00 01/23/2025 BECKWITH. ERIN 250.00
01/23/2025 CHICAGO TITLE COMPANY 100.00
01/23/2025 CHICAGO TITLE COMPANY 4.00
01/23/2025 EULBERG. LORI 30.59
01/23/2025 EVERGUARD HOME INSULATION 1,497.00
01/23/2025 FARWEST CORROSION CONTROL CO 681.83
01/23/2025 HOLGUIN. CLAUDIA 181.51
01/23/2025 IRVING JOSEPH 214.66
01/23/2025 JOHNSTON. HOLLY 22.91
01/23/2025 MANGUNE. HELEN 150.00
01/23/2025 NICHOLSON, BRENDA 250.00
01/23/2025 EDCO WASTE SERVICES LLC 564,360.25
01/23/2025 JENNINGS, MARJORIE 0.01
01/23/2025 LAKEWOOD EDUCATION FOUNDATION 3,592.34
01/23/2025 RUIZ, TAWNY 0.01
01/23/2025 WOOD, JEFF 0.01
Total: 2,045,266.02

DIVIDER

COUNCIL AGENDA
January 28, 2025
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: Water Resource Committee.

STATEMENT OF FACT
On January 7, 2025, the Water Resources Committee met and discussed:

Updates were provided on CIP and maintenance projects and water supply.

New Water Main Replacement Update
• The design consultant is completing a utility search and finalizing design drawings and specifications, focusing on areas with undersized pipes and leak history. •
The replacement will cover approximately 2 miles, including parts of Hayter Ave., Downey Ave., Allred St., and several other streets.
• Construction bidding plans are expected to be finalized later this fiscal year, with construction beginning early next fiscal year.

Hydraulic Model Update
• Staff hasstarted using the new hydraulic modeling software, Aquanuity AquaTwin Water, and will soon collaborate with a consultant to calibrate the model. •
The software is currently being used to confirm fire flow tests and will later be utilized to update the city's Water Master Plan.

Leak Detection Program
• DWR conducted a Leak Detection Equipment (LDE) pilot study with Fluid Conservation Systems (FCS) in May 2024, testing LDE in areas like Lakewood Mall, Lakewood Country Club, and various residential areas. Based on the results, DWR will expand the program to more locations with aging or undersized pipelines.
• The city received a $50,000 grant from the Central Basin Municipal Water District to support this expansion, with equipment delivery and installation expected by March 2025.

Reimbursement for the project will be sought after completion.

RI-4
Council Committees’ Activities
January 28, 2025

Water Billing and Customer Service
• Staff introduced the new Utility Billing Supervisor Jacob Borgain. •
Staff reported on the second round of funding from the state arrearages program with the city receiving $240,000.
• Staff reported that an agreement has been signed for the utility billing software upgrade, and a kickoff meeting will be scheduled soon.

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

Thaddeus McCormack
City Manager

COUNCIL AGENDA
January 28, 2025
TO: The Honorable Mayor and City Council
SUBJECT: Monthly Report of Investment Transactions-December 2024

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 Investment Transaction Rate*
Ol-Dec-24 $392.00 BONDS INTEREST 0.560%
Ol-Dec-24 140,000.00 BONDS INTEREST 0.560%
Ol-Dec-24 183,168.98 CAMP POOL INTEREST 4.730%
02-Dec-24 2,230.21 MMF INTEREST 3.700%
05-Dec-24 1,079,954.16 TREAS PURCHASE 1.250%
05-Dec-24 313,381.70 TREAS PURCHASE 2.250%
05-Dec-24 319,276.47 CORP SELL 3.050%
ll-Dec-24 7,275.00 CORP INTEREST 4.850%
ll-Dec-24 15,261.00 CORP INTEREST 5.087%
12-Dec-24 305,273.18 TREAS PURCHASE 4.500%
12-Dec-24 305,383.42 CORP SELL 4.850%
12-Dec-24 1,200,000.00 CAMP POOL SELL 4.730%
15-Dec-24 3,536.25 CORP INTEREST 3.450%
15-Dec-24 3,537.05 CORP INTEREST 5.150%
15-Dec-24 1,372.88 ABS INTEREST 5.230%
15-Dec-24 902.42 ABS INTEREST 4.420%
15-Dec-24 1,683.29 ABS INTEREST 5.690%
15-Dec-24 576.53 ABS INTEREST 3.970%
15-Dec-24 1,221.21 ABS INTEREST 5.530%
15-Dec-24 1,284.17 ABS INTEREST 4.600%
15-Dec-24 270.08 ABS INTEREST 3.660%
Rl-5
Monthly Investment Transactions
January 28, 2025

Date Amount at Cost Investment Transaction Rate*
15-Dec-24 862.00 ABS INTEREST 4.310%
15-Dec-24 1,605.50 ABS INTEREST 4.940%
15-Dec-24 1,311.50 ABS INTEREST 5.160%
15-Dec-24 19.66 ABS INTEREST 0.550%
15-Dec-24 $326.97 ABS INTEREST 4.510%
15-Dec-24 446.41 ABS INTEREST 4.870%
15-Dec-24 786.25 ABS INTEREST 5.100%
15-Dec-24 1,130.83 ABS INTEREST 5.900%
15-Dec-24 637.00 ABS INTEREST 5.460%
15-Dec-24 518.92 ABS INTEREST 4.790%
15-Dec-24 387.50 ABS INTEREST 4.650%
15-Dec-24 365.33 ABS INTEREST 5.480%
15-Dec-24 501.21 ABS INTEREST 5.230%
15-Dec-24 6,292.58 ABS PAYDOWN 3.660%
15-Dec-24 5,508.12 ABS PAYDOWN 4.510%
15-Dec-24 12,774.99 ABS PAYDOWN 3.970%
15-Dec-24 7,476.13 ABS PAYDOWN 0.550%
16-Dec-24 179,054.57 TREAS PURCHASE 3.500%
16-Dec-24 363.33 ABS INTEREST 5.450%
16-Dec-24 181,456.48 CORP SELL 2.950%
18-Dec-24 107.44 ABS INTEREST 3.730%
18-Dec-24 1,104.54 ABS INTEREST 5.410%
18-Dec-24 3,419.07 ABS PAYDOWN 3.730%
19-Dec-24 1,300,000.00 CAMP POOL SELL 4.730%
23-Dec-24 1,000,000.00 CAMP POOL PURCHASE 4.730%
25-Dec-24 564.26 FNMA INTEREST 3.303%
25-Dec-24 791.67 FNMA INTEREST 5.000%
25-Dec-24 862.23 FNMA INTEREST 2.653%
25-Dec-24 1,501.00 FNMA INTEREST 4.740%
25-Dec-24 1,094.51 FNMA INTEREST 3.243%
25-Dec-24 1,074.67 FNMA INTEREST 3.224%
25-Dec-24 1,131.67 FNMA INTEREST 4.850%
25-Dec-24 1,560.98 FNMA INTEREST 4.803%
25-Dec-24 1,524.00 FNMA INTEREST 4.572%
25-Dec-24 591.38 FNMA INTEREST 5.069%
25-Dec-24 1,202.63 FNMA INTEREST 4.777%
25-Dec-24 850.50 FNMA INTEREST 4.860%
Monthly Investment Transactions
January 28, 2025

Date Amount at Cost Investment Transaction Rate*
25-Dec-24 749.43 FNMA INTEREST 3.347%
25-Dec-24 1,258.67 FNMA INTEREST 4.720%
25-Dec-24 1,520.00 FNMA INTEREST 4.800%
25-Dec-24 1,502.67 FNMA INTEREST 4.508%
25-Dec-24 1,248.53 FNMA INTEREST 4.181%
25-Dec-24 $958.20 FNMA INTEREST 4.791%
25-Dec-24 1,505.94 FNMA INTEREST 4.819%
25-Dec-24 1,362.90 FNMA INTEREST 4.543%
25-Dec-24 1,472.50 FNMA INTEREST 4.650%
25-Dec-24 1,171.92 FNMA INTEREST 3.430%
25-Dec-24 1,200.48 FNMA INTEREST 4.377%
25-Dec-24 296.29 ABS INTEREST 5.470%
25-Dec-24 7,125.00 CORP INTEREST 4.750%
25-Dec-24 365.58 FNMA PAYDOWN 4.377%
25-Dec-24 250.37 FNMA PAYDOWN 4.777%
25-Dec-24 2.29 FNMA PAYDOWN 4.181%
25-Dec-24 561.50 FNMA PAYDOWN 3.347%
27-Dec-24 10,480,877.05 CAMP TERM MATURITY 4.250%
27-Dec-24 10,480,877.05 CAMP POOL PURCHASE 4.730%
31-Dec-24 10,656.25 TREAS INTEREST 3.875%
31-Dec-24 10,000,000.00 CAMP POOL SELL 4.730%
31-Dec-24 10,000,000.00 CAMP TERM PURCHASE 4.250%
31-Dec-24 5,000,000.00 CAMP POOL PURCHASE 4.730%
* Rates shown for MMF, LAIF, and CAMP are distribution yields. All others are coupon rates.

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.

Monthly Investment Transactions
January 28, 2025

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 ‘‘prune” 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.

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/infrastructure development, environmental protection, poverty reduction and renewable energy around the globe, rated AAA, highly liquid and issued in a range of maturities.

Monthly Investment Transactions
January 28, 2025

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 December 2024.
4^
Jose Gomez Thaddeus McCormack
Director of Finance & Administrative Services City Manager

COUNCIL AGENDA
January 28, 2025
TO: Honorable Mayor and City Council
SUBJECT: Reassignment of Sunstone Management, Inc. Service Agreement

STATEMENT OF FACTS
On March 26, 2024, the City of Lakewood City Council approved a Professional Services Agreement with Sunstone Management, Inc., (“Sunstone”) for the preparation of an Economic Development Strategic Plan. Since that date Sunstone has made consistent progress towards that goal and provided deliverables in a timely and professional manner. Sunstone recently decided to legally reorganize and create a subsidiary organization named Sunstone Cities, LLC. There is no change in the consulting staff that will continue to provide required performance and completion of the Lakewood Economic Development Strategic Plan. The attached Assignment of Agreement was prepared by the Lakewood City Attorney and will be approved as to form by him. This Agreement assigns the service agreement from the original consulting entity Sunstone Management. Inc. as the Assignor to the subsidiary entity Sunstone Cities, LLC, as the Assignee.

Otherwise, the original agreement remains as originally negotiated and approved. This is for internal Sunstone reorganization purposes only.

Rl-6

ASSIGNMENT OFAGREEMENT
ThisAssignment is made and effective as ofJanuary 28, 2025; thisAssignment affects that certain Professional Services Agreement dated March 26, 2024 (the “PSA”), between the City of Lakewood (“City”) and Sunstone Management, Inc. (“Assignor”).

Pursuant to Section 17 of the PSA, Assignor hereby assigns all of its rights and responsibilities under the PSA to Sunstone Cities, LLC. (“Assignee”). Assignee hereby accepts such Assignment. The City hereby consents to such Assignment.

Intending to be legally bound, the parties’ authorized representatives have executed this Assignment, below, as of the date first set forth above.

ASSIGNOR
Sunstone Management, Inc.

ASSIGNEE
Sunstone Cities, LLC
John P. Keisler
CEO & Managing Partner
John P. Keisler
CEO & Managing Member
Jessica Dela Rosa, Administrative Officer Jessica Dela Rosa, Managing Member and Board Secretary and Secretary
CITY OFLAKEWOOD ATTEST;
Mayor Todd Rogers City Clerk
Approved as to Form
CityAttorney
r

COUNCIL AGENDA
September 10, 2024
TO: Honorable Mayor and City Council
SUBJECT: Approval of Agreement Amendment with Southwest Patrol, Inc. Increasing Number of Private Security Guards

INTRODUCTION
Since April 2022, overnight private security patrol service have been component of Lakewood’s overall public safety model to increase our capacity to deter criminal activity and improve the safety and security of our community. In response to an uptick of daytime crime in June 2024, additional private security patrols were deployed during daytime hours as an initial 60-day trial basis which was then extended through October 2024.

STATEMENT OF FACT
In June, staff saw an uptick of daytime crime, including residential burglaries. In response, Council approved an agreement amendment with Southwest Patrol to deploy two unarmed security guards during the hours of 9 a.m. to 3 p.m., seven days a weeks. The guards were assigned to patrol one-half of the city each, covering the entire city. Their focus was to patrol within residential neighborhoods, being highly visible. This deployment was approved for a 60- day trial basis through August 27, 2024, and subsequently extended through October 2024. We have seen another increasing trend of daytime crime and recommend to amend our deployment of private security patrols to provide daytime coverage.

Specifically, staff is recommending to increase the number of security guards from four to a total of six, and provide for the shift timeframes to be determined by the Director of Public Safety in consultation with the Sheriffs Department based on regular reviews of crime data and trends.

This approach will allow the city the most flexibility to deploy the private security in the most effective and efficient manner providing for a blend daytime and nighttime patrols. The estimated cost for the additional private security guards is $105,000. Funds are available in the approved FY 2024-2025 General Fund budget.

RECOMMENDATION
Staff recommends the City Council approve an agreement amendment with Southwest Patrol, Inc. to increase the number of unarmed private security guards to six, for a term commencing January 30, 2025 through June 30, 2025, and authorize the City Manager to sigpAhe agreement in a form as approved by the City Attorney. s'
Joshua Yordt \ Thaofleus McCormack
Director of Public'Safety City Manager
RI-7

ORDINANCE NO. 2025-1

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
LAKEWOOD ADDING SUBSECTION 4323 Q. TO THE

LAKEWOOD MUNICIPAL CODE TO REQUIRE

COMMERCIAL BUSINESSES TO HAVE A PROGRAM FOR

SHOPPING CART IDENTIFICATION, RETENTION, AND

RETRIEVAL AND TO FIND THAT ABANDONED CARTS ARE

A PUBLIC NUISANCE

THE CITY COUNCIL OF THE CITY OF LAKEWOOD DOES ORDAIN AS FOLLOWS:

SECTION 1. PURPOSE. The Lakewood City Council hereby finds that ongoing shopping cart theft, vandalism and abandonment are ongoing problems that are public nuisances per se. Abandoned carts create potential hazards to the health and safety of Lakewood residents and often interfere with pedestrian and vehicular traffic safety within the City of Lakewood. The accumulation of abandoned and vandalized shopping carts on both public and private property creates conditions with visual blight that reduce property values, encourage property deterioration and otherwise impact the general welfare of Lakewood residents. This is an avoidable situation, and the purpose of this ordinance is to require commercial property owners and tenants to take responsibility for the monitoring, retention and retrieval of their shopping and laundry carts. They shall create programs and procedures to provide public notice, prevent theft and removal of carts and to facilitate the regular retrieval of abandoned carts in a timely manner.

SECTION 2. Subsection 4323 Q of the Lakewood Municipal Code establishing a commercial cart identification, retention, and retrieval program is hereby added to read asfollows:
4323. PROPERTY NUISANCES.

Q. Cart Retention and Retrieval Program. Each commercial business owner or tenant (“Cart Owner”) that provides five (5) or more shopping or laundry carts (“Carts”) for use by their customers on their business premises shall develop and implement a Cart Retention and Retrieval Program (“CRRP”) for their commercial business. The CRRP shall cover all Cart operations on the business premises, which includes the retail building/ tenant space and all related parking lot areas, including those that are shared with reciprocal accessrightsin a shopping center. The CRRP shall address proceduresfor Cart identification, property signage prohibitingCart removal without written permission, Cart retention systems and Cart retrieval services/programs in conformance with California Business and Professions Code (“BPC”) Section 22435 et. seq.

Each Cart Owner shall submit to and obtain approval from the Community Development Director or their designee of the CRRP. The Cart Owner shall then sign and submit an annual CRRP Certification Letter to City Finance Director prior to issuance and as a condition of the Ordinance No. 2025-1

annual business license renewal or the initial business license issuance by the City Finance Director. The Cart Owner shall acknowledge in the certification letter that they have an approved CRRP and that they will properly implement the CRRP as detailed in the approved plan or as modified and updated in the CRRP Certification Letter.

The updated information to be listed in the CRRP Certification Letter includes: any changes in the number, color and/or sizes of Carts on the subject site, any changes to the required Cart or property signage and/or any changes to the approved retention and retrieval procedures.

Any Cart Owner that fails to submit a CRRP shall not be issued a business license until such time the CRRP is submitted, reviewed and approved by the Community Plan Director and the CRRP Certification Letter is submitted and accepted by the Finance Director. Any failure to properly implement and update the approved CRRP is a violation of the Lakewood Municipal Code, and the City may pursue any available enforcement remedy provided by the code, including administrative citations and fines.

1. Definitions for Cart Retention and Retrieval Programs. Definitions of words related to Cart requirements in this section shall be as currently listed and as amended from time to time in state law as BPC section 22435 et. seq. and in addition, as follows:
(a) “Abandoned Cart” means any shopping Cart that has been removed, without written consent of the Cart Owner, from the Cart Owner’s business premises and/or parking areas of the retail establishment on which the Cart Owner’s business premises is located.

The Cart Owner’s business premises may include a multi-store shopping center with shared areas of parking and public access.
(b) “Cart Retention and Retrieval Plan” or “CRRP” shall mean a document submitted by the Cart Owner and approved by the City that provides a plan for how the Cart Owner will prevent Carts from becoming abandoned and acts as an implied promise by the Cart Owner to comply with the plan.
(c) “Cart” means a basket which is mounted on wheels or a similar device generally used in a retail establishment by a customer for transporting goods of any kind, including, but not limited to, grocery store shopping Carts and laundromat laundry Carts. (d). “Owner or Cart Owner” means any person, firm, partnership, corporation, association, tenant, or other entity who owns, possesses, or makes a Cart available for the use of the Owner’s customers or the public in connection with the management and operation of the Owner’s business. “Owner” for the purposes of this section shall also include the Owner’s on-site business manager or designated agent that provides Carts for use by Owner’s customers or the public.
(e) “Premises” means the entire area owned, utilized or under the control of the business establishment that provides Carts for use by customers, including any parking area or other off-street area provided by or for use by a customer of the business establishment.
(f) “Unidentified Cart” means any Cart that does not have the required Cart identification sign permanently attached in compliance with BPC 22435 et. seq.

2. Unauthorized Cart Removal or Cart Possession. In conformance and compliance with California Business and Professions Code Section 22435 et. seq., it is unlawful for any person to have the intent to temporarily or permanently deprive the Cart Owner of possession of a Cart and do any of the following
Ordinance No. 2025-1

(a) Remove a Cart from the Cart Owner’s business premises. (b) To leave or abandon a Cart at a location other than the subject business premises. (c) To be in possession of any Cart, while that Cart is not located on the Cart Owner’s business premises.
(d) To alter, convert, or tamper with a Cart, or to remove any part or portion thereof or to remove, obliterate or alter serial numbers or the identification placard on a Cart. (e) These provisions do not apply to the Cart Owner or to their agents or employees, or to a Cart Owner customer, who has written consent from the Cart Owner to be in possession of the Cart and/or to be allowed to remove the Cart from the Cart Owner’s business premises or to do any of the acts specified, required and allowed in this section.

3. All Carts Secured Daily. All Cart Owners, regardless of the number of Carts owned, shall ensure that all Carts are secured from public access after the close of business every day.

4. Cart Identification. Each Cart at a business shall have a permanently installed and readily visible identification placard that states the business name, address, phone number and, if applicable, an email address for the Cart Owner. The placard shall state that the removal of the Cart from the business premises and or possession of a Cart removed from the premises is a punishable violation of BPC 22435 et. seq. Placard example:

DO NOT REMOVE THIS CART
Unauthorized Removal or Possession of this Cart
Away from the business location is a violation of
State Law BPC 22435 et. seq.

IF FOUND – PLEASE CALL OR RETURN TO:
(List business address, phone number, email and/or Cart retrieval service)

5. Property Warning Signs. Each Cart Owner shall permanently install readily visible warning signs at each point of normal ingress and egress both inside the retail store at doors and in parking lots that state that the removal of the Cart from the business premises and or possession of a Cart removed from the premises is a violation of BPC 22435 et. seq. Warning sign example:

WARNING

DO NOT REMOVE CARTS FROM PROPERTY
Unauthorized Removal or Possession of a Cart
Away from this Business Location is a Violation of
State Law BPC 22435 et. seq. and it will be Enforced.

IF FOUND, PLEASE RETURN CARTS

6. Cart Retention Program. The Cart Owner shall include in the CRRP a description of the specific measures that they propose to implement to prevent Cart removal and to retain Carts on the business premises. Approval of the Community Development Director or designee is required. These measures may include, but are not limited to:
(a) Electronic/magnetic wheel locks or other physical disabling devices on the Carts so they cannot be easily removed from the store or from a parking lot, (b) Security staff to prevent removal from the store or from a parking lot, (c) Courtesy clerks to accompany customers out and return the Carts to the store, (d) Security deposit for temporary use of a Cart, or
(e) Other acceptable Cart removal prevention procedures or methods.

Ordinance No. 2025-1

7. Cart Retrieval Program. Cart Owners shall establish an internal program or contract with an external service to retrieve abandoned Carts in the City of Lakewood within seventy-two (72) hours of being notified of the location of the abandoned Cart. The Cart Owner shall include in the CRRP a description of the specific retrieval system they propose to implement. Approval of the Community Development Director or designee is required. These measures may include, but are not limited to:
(a) Cart Owner staff picking up and returning any reported abandoned Carts daily. (b) Cart Owner staff canvassing the area within ½ mile of the business weekly. (c) Contracting with a Cart retrieval service to canvass and pickup Carts, daily. (d) Multiple businesses may collaborate and submit a single retrieval plan (e) Other acceptable Cart retrieval procedures or methods.

8. City Retrieval and Disposal of Carts. The City may retrieve an abandoned Cart from public property (or private property with the consent of the private property Owner) in the following circumstances:
(a) The Cart is an unidentified Cart without the required identification placard. (b) The location of the Cart is on public right-of-way and impeding safe operations. (c) The location of the Cart has been determined to be unsafe by an emergency service agency staff member (e.g., fire or sheriff, etc.) (d) The City has confirmed notification of the Cart Owner, the Owner’s agent, and/ or the contracted Cart retrieval service listed by the Cart Owner in the approved CRRP and the Cart has not been retrieved within five (5) city business days from the confirmed notification.

Confirmed notification to the Cart Owner or their identified agent/staff by city staff includes the following: 1) a connected two-way phone conversation, not just a message; 2) a confirmed email message acknowledging the Cart will be picked up and 3) a certified return receipt letter notifying Cart Owner of the Cart location.

Following such retrievals and compliance with the above listed notification and allowed retrieval requirements, the City may then dispose of such unidentified or unclaimed Carts by destruction, recycling, donation, or surplus sales.

9. Enforcement. Abandoned, unidentified and unclaimed Carts are all hereby determined to be a public nuisance per se. The unauthorized removal or possession of a Cart away from the Cart Owner’s business premises is an unlawful act prohibited by state law and city regulation. The failure of a Cart Owner to have an approved CRRP or to properly implement or update an approved CRRP is a violation of this Code. These are all subject to all enforcement remedies and actions allowed by the Lakewood Municipal Code or as otherwise required by state law, including but not limited to administrative citations, fines and criminal law penalties, when applicable.

SECTION 3. SEVERABILITY. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance, is for any reason held to be invalid or unconstitutional by the decision of any court of competent authority, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional.

Ordinance No. 2025-1

SECTION 4. CONTINUITY. To the extent the provisions of the Lakewood Municipal Code as amended by this Ordinance are substantially the same as the provisions of that Code as they read immediately prior to the adoption of this Ordinance, then those provisions shall be construed as continuations of the earlier provisions and not as new enactments.

SECTION 5. CERTIFICATION. The City Clerk shall certify the adoption of this Ordinance and shall post a certified copy of this Ordinance, including the vote for and against same, in the Office of the City Clerk, in accordance with Government Code Section 36933. The City Council hereby finds and determines there are no newspapers of general circulation both published and circulated within the City and, in compliance with Section 36933 of the Government Code, directs the City Clerk to cause the ordinance within 15 days after its passage to be posted in at least three (3) public places within the City as established by Ordinance.

SECTION 6. EFFECTIVE DATE. This Ordinance shall be posted and/or published as required by law and shall take effect thirty (30) days after its adoption.

ADOPTED AND APPROVED this __________ day of ______________________, 2025, by the following roll call vote:

AYES NAYS ABSENT
Council Member Wood
Council Member Croft
Council Member Arellano
Council Member Chase
Mayor Rogers
_____________________________
Mayor
ATTEST:
_____________________________
City Clerk

DIVIDERSHEE

COUNCIL AGENDA
January 28, 2025
TO: Honorable Mayor and City Council
SUBJECT: Annual City Investment Policy and Quarterly Schedule of Investments ~ as of December 31, 2024

INTRODUCTION
The annual review and adoption of the City’s investment policy by the City Council is a best practice that the City has adhered to for years. It was last adopted in January 2024. As expressed in our Investment Policy, the City’sinvestment objectives continue to be safety, liquidity and yield in the investment of public funds.

STATEMENT OF FACTS
Attached is the City's proposed investment policy for 2025. There are no changes from the prior year’s policy asthe State has not mandated any modifications nor are there any proposed strategic changes by staff since last year. The City’s first policy was adopted in 1980, and has been updated since then to conform to new laws and sound investment practices. PFM Asset Mahagement LLC (PFM), the City’s professional investment consultant advises the City on these matters and has indicated that there are no proposed changes in investment strategy. Therefore, the current policy remains appropriate for the next 12 months.

The City’s investment portfolio includes funds managed by PFM as well as deposits in the Local Agency Investment Fund (LAIF - a state-wide pooled account), and the California Asset Management Program (CAMP - a joint powers authority established to provide public agencies with professional investment services).

In addition to reviewing the City's investment policy, it is also appropriate to review PFM’s investment performance. This includes a comparison of the managed investment portfolio to the established market index. Since inception, the portfolio under PFM’s management has gained greater total return than the benchmark, currently the ICE Bank of America Merrill Lynch (BofAML) 1-5 Year U.S. Treasury Index provided by Bloomberg Financial Markets.

Following is a table with a comprehensive view of the City’s portfolio for the quarter ending December 31, 2024, including the funds managed by PFM:

3.1 January 28, 2025

Summary - Schedule of Investments as of December 31, 2024

PMF MANAGED PORTFOLIO
$5,551,471
Security Type
Market
Value
% of
Portfolio
% Change
vs. 9/30/24
Permitted
by Policy
In
Compliance
U.S. Treasury Notes $ 18,670,462 45.9% 8.0% 100%
Corporate Notes 8,237,432 20.2% -5.9% 30%
Negotiable CDs 1,197,375 2.9% -1.0% 30% V
Federal Agency 293,948 0.7% 0.0% 100% V
Municipal Bonds 549,654 1.3% -0.7% 100% V
Federal Agency CMBS 7,465,364 18.3% 0.8% 100% V
Asset Backed Securities 4,361,204 10.7% -1.2% 20% V
Total Managed Portfolio $40,775,439
POOLED INVESTMENT ACCOUNTS Market Value
LAIF State of CA $3,929,960
CAMP - Pool US Bank 49,425,813
CAMP - Term US Bank 40,000,000
$93,355,773
BANK ACCOUNTS Balance
City - Checking * F&M $2,842,716
City Payroll F&M 54,683
Successor Housing-Checking F&M $2,654,072
Funds held Inreserve as required by debt Issuance or non-agency funds - not available for City expenditures:

Successor Agency -Checking $569,072
TOTAL PORTFOLIO $140,251,755
* A significant portion represents uncashed recently-issued checks Richard Babbe from PFM will provide a detailed investment presentation at the City Council meeting, including broader market and economic policy factors.

RECOMMENDATION
Staff recommends that the Council adopt the attached Investment Policy and receive and file the Quarterly Schedule of Investments for December 31, 2024.

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

CITY OF LAKEWOOD
INVESTMENT POLICY - January 2025
I. Scope
This policy applies to the investment of the City of Lakewood’s (“City”) applies to all funds accounted for in the annual budget. Funds of the City will be invested in compliance with the provisions of, but not necessarily limited to California Government Code Section 53601 et seq. and other applicable statutes. Investments will be in accordance with these policies and written administrative procedures. This policy does not regulate the investment of bond proceeds.

II. Objectives
The objectives, in priority order, of the City of Lakewood’s investment activities shall be:

Safety. Safety of principal is the primary and most important objective of the investment program.

Investments of the City will be made in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, the City will endeavor to mitigate credit and market risk.

Liquidity. The City’s investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated. This will be achieved through maturity diversification and purchases of securities with an established secondary market.

Yield. The City’s investment portfolio shall be designed 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 the safety and liquidity objectives described above.

III. Standards of Care
Prudence
The City of Lakewood adheres to the guidance provided by the “prudent investor” standard (CA 53600.3) to insure that:
“When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law.”
This standard of prudence is to be used by all investment staff and will be applied in the context of managing an overall portfolio.

January 28, 2025

Ethics and Conflicts of Interest
Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with the proper execution and management of the investment program, or that could impair their ability to make impartial decisions. Employees and investment officials shall disclose any material interests in financial institutions with which they conduct business.

They shall further disclose any personal financial/investment positions that could be related to the performance of the investment portfolio. Employees and officers shall refrain from undertaking personal investment transactions with the same individual with whom business is conducted on behalf of the City.

Delegation of Authority
The authority to invest City funds is delegated to the Director of Finance & Administrative Servicesfor a period of one year. The Director of Finance & Administrative Services is also subject to the direction and supervision of the City Manager. Subject to review, the City Council may renew the delegation of authority each year or more frequently, if desired. Additionally, the City Manager is granted the ability to unilaterally reassign or modify these responsibilities. If carried out, he/she will notify the City Council no later than the subsequent City Council meeting. The Director of Finance & Administrative Services and his/her designated staff, herein referred to as investment staff, are responsible for City’s investment program. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established. The Director of Finance & Administrative Services shall be responsible for all transactions undertaken and will establish a system of controls to regulate the activities of subordinate officials.

The City may delegate its investment decision making and execution authority to an investment advisor. The advisor shall follow the policy and such other written instructions as are provided.

IV. Authorized and Suitable Investments
Surplus funds of local agencies may only be invested in certain eligible securities as listed below.

Percentage holding limits, where shown, apply at the time the security is purchased. Credit criteria listed in this section refers to the credit rating at the time the security is purchased. If an investment’s credit rating falls below the minimum rating required at the time of purchase, the City’s investment advisor (if any) and Director of Finance & Administrative Services will review the rating agency action and decide whether to sell or hold the investment. The investment strategy for the City of Lakewood is to administer an operational portfolio. A definition of an operational portfolio is to have adequate funds available at all times to meet appropriated and projected cash flow requirements for the City of Lakewood.

The City of Lakewood does not purchase or sell securities on margin.

1. U.S. Treasury Obligations. United States Treasury notes, bonds, bills, or certificates of indebtedness, or those for which the full faith and credit of the United States are pledged for the payment of principal and interest. There are no portfolio percentage limits for U.S. Treasury obligations.

January 28, 2025

2. 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.

3. Municipal Obligations. Municipal obligations to include the following:
(a) Registered Treasury Notes or Bonds of the State of California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the state or by a department, board, agency, or authority of the state. (b) Bonds, notes, warrants, or other evidences of indebtedness of any local agency within the State of California, including bonds payable solely out of the revenues from a revenueproducing property owned, controlled, or operated by the local agency, or by a department, board, agency, or authority of the local agency.
(b) Registered Treasury Notes or Bonds of any of the other 49 United States in addition to California, 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.

Obligations are required to be rated in a rating category of “AA” or its equivalent or better by a nationally recognized statistical rating organization (NRSRO). There are no portfolio percentage limits for municipal obligations.

4. Negotiable Certificates of Deposit. Negotiable certificates of deposit or deposit notes issued by a nationally or state-chartered bank or a state or federal savings and loan association or by a federally licensed or state-licensed branch of a foreign bank. Purchases are limited to securities rated in a rating category of “A” (long-term) or “A-1” (short-term) or their equivalents or better by an NRSRO. No more than 30% of the City’s portfolio may be invested in negotiable certificates of deposit.

5. Placement Service Deposits. Fully insured deposits placed through a deposit placement service that meets the requirements under Code Section 53601.8. No more than 30% of the City’s portfolio may be invested in placement service deposits.

6. Money Market Funds. Shares of beneficial interest issued by diversified management companies that are money market funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. See. 80a-1, et seq.). To be eligible for investment pursuant to this subdivision, these companies shall either: (1) attain the highest ranking or the highest letter and numerical rating provided by not less than two nationally recognized statistical rating organizations; or (2) retain an investment advisor registered or exempt from registration with the Securities and Exchange commission with not less than five years' experience managing money market mutual funds with assets under management in excess of five hundred million dollars ($500,000,000). No more than 20% of the City’s portfolio may be invested in money market funds. The purchase price of shares shall not include any commission charged by the fund. No more than 10% of the City’s portfolio may be invested in any one fund.

January 28, 2025

7. Government Pools. Shares of beneficial interest issued by a joint powers authority (6509.7) that invests in securities authorized by Section 53601 of the California Government Code. Each share shall represent an equal proportional interest in the underlying pool of securities owned by the joint powers authority. To be eligible under this section, the joint powers authority issuing the shares shall have retained an investment adviser that meets all of the following criteria:
(a) The adviser is registered or exempt from registration with the Securities and Exchange Commission.
(b) The adviser has not less than five years of experience investing in the securities and obligations authorized in California Government Code section subdivisions (a) to (q), inclusive.
(c) The adviser has assets under management in excess of five hundred million dollars ($500,000,000).

There is no portfolio percentage limit for Government Pools.

8. State of California's Local Agency Investment Fund. Investment in LAIF may not exceed the current LAIF limit and should be reviewed periodically.

9. Los Angeles County Pool. Investment in the Los Angeles County Pool may not exceed the current pool limits and should be reviewed periodically.

10. 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. The entity that issues the commercial paper shall meet all of the following conditions in either paragraph (a) or paragraph (b):
(a) The entity meets the following criteria: (i) Is organized and operating in the United States as a general corporation. (ii) Has total assets in excess of five hundred million dollars ($500,000,000). (iii) Has debt other than commercial paper, if any, that is rated in a rating category of “A” or its equivalent or higher by a NRSRO. (b) The entity meets the following criteria: (i) Is organized within the United States as a special purpose corporation, trust, or limited liability company. (ii) Has program wide credit enhancements including, but not limited to, over collateralization, letters of credit, or surety bond. (iii) Has commercial paper that is rated “A-1” or higher, or the equivalent, by a NRSRO.

Purchases of commercial paper shall have a maximum maturity of 270 days. No more than 25% of the City’s portfolio may be invested in commercial paper.

11. Corporate Notes. Medium-term notes, defined as all corporate and depository institution debt securities with a maximum remaining maturity of five years of less, issued by corporations organized and operating within the Unites States or by depository institutions licensed by the January 28, 2025

United States, or any state and operating within the United States. Medium-term corporate notes shall be rated in a rating category of “A” or its equivalent or better by a NRSRO. No more than 30% of the City’s portfolio may be invested in corporate notes.

12. Supranationals. Supranationals, defined as United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank, with a maximum remaining maturity of five years or less, and eligible for purchase and sale within the United States. Supranationals shall be rated in a rating category of “AA” or its equivalent or better by a NRSRO. No more than 30% of the City’s portfolio may be invested in supranationals.

13. Asset-Backed Securities. A mortgage passthrough security, collateralized mortgage obligation, mortgage-backed or other pay-through bond, equipment lease-backed certificate, consumer receivable passthrough certificate, or consumer receivable-backed bond. For securities eligible for investment under this subdivision not issued or guaranteed by an agency or issuer identified in subdivision (1) or (2) above, the following limitations apply:
a) The security shall be rated in a rating category of “AA” or its equivalent or better by an NRSRO and have a maximum remaining maturity of five years or less. b) Purchase of securities authorized by this paragraph shall not exceed 20% of the City’s portfolio.

V. Ineligible Investments
Any security type or structure not specifically approved by this policy is hereby prohibited; these include, but are not restricted to, the following:
(a) "Complex" derivative securities such as range notes, dual index notes, inverse floating-rate notes, leveraged or deleveraged floating-rate notes, or any other complex variable-rate or structured note.
(b) Interest-only strips that are derived from a pool of mortgages, or any security that could result in zero interest accrual if held to maturity except as authorized by Code Section 53601.6. (c) Financial Futures and Financial Options also known as forward contracts for securities.

VI. Investment Parameters
Diversification. The City’s investments shall be diversified by:
• Limiting investments to avoid over concentration in securities from a specific issuer or sector. No more than 10% of the portfolio may be invested in the securities of any one issuer, regardless of security type; excluding U.S. Treasuries, federal agencies, supranationals, and pooled investments such as LAIF, LA County Pool, and Government Pools. • Limiting investment in securities that have higher credit risks. • Investing in securities with varying maturities.

January 28, 2025

• Continuously investing a portion of the portfolio in readily available funds such as local government investment pools or money market funds to ensure that appropriate liquidity is maintained in order to meet ongoing obligations.

Maximum Maturities. To the extent possible, the City shall attempt to match its investments with anticipated cash flow requirements. Unless stated otherwise in Section IV of this Policy, the maximum maturity of the City’s eligible investments will not exceed five years unless the City Council has granted express authority to make that investment either specifically or as a part of an investment program approved by the City Council no less than three months prior to the investment.

Sale of Securities. The City does not make investments for the purpose of trading or speculation, but buys with the prevalent intent to hold securities to maturity. The prohibition of speculative investment precludes pursuit of profit through unusual risk or conjectural fluctuations in market prices. However, fluctuations in market rates or changes in credit quality may produce situations where securities may be sold at a nominal loss in order to mitigate further erosion of principal or to reinvest proceeds of sale in securities that will out-perform the original investment.

VII. Depository Services
Legal Constraints
Money must be deposited in state or national banks, state or federal savings associations, or state or federal credit unions in the state. It may be in inactive deposits, active deposits or interestbearing active deposits. The deposits cannot exceed the amount of the bank's or savings and loan's paid up capital and surplus.

The bank or savings and loan must secure the active and inactive deposits with eligible securities having a market value of 110% of the total amount of the deposits. State law also allows, as an eligible security, first trust deeds having a value of 150% of the total amount of the deposits. A third class of collateral is letters of credit drawn on the Federal Home Loan Bank (FHLB). As a matter of policy, the City does not accept 150% collateral in first trust deeds or 105% Letters of Credit drawn on the FHLB, even though the state statutes allow municipalities to accept them.

The Director of Finance & Administrative Services may at his discretion waive security for that portion of a deposit which is insured pursuant to federal law. Currently, the first $250,000 of a deposit is federally insured. It is to the City's advantage to waive this collateral requirement for the first $250,000 because we receive a higher interest rate. If funds are to be collateralized, the collateral we accept is 110% of the deposit in government securities.

Depository Services
Active deposits are demand or checking accounts which receive revenues and pay disbursements.

The City of Lakewood has four demand accounts:
• General checking account
• Payroll checking account
• Successor agency project account
January 28, 2025

• Successor agency housing account
Interest-bearing active deposits are money market accounts at a financial institution (i.e., bank, savings and loan, credit union). These accounts are demand accounts (i.e., checking accounts) with restricted transaction activity.

Inactive deposits are Certificates of Deposit issued in any amount for periods of time as short as 14 days and as long as several years. Interest must be calculated on a 360-day basis, actual number of days. There is no portfolio percentage limit for Inactive Deposits. The maximum maturity shall be limited to one year.

We require that each financial institution submit current financial statements which are evaluated by staff prior to the investment of funds. We use the following criteria:

The institution must have been in business at least three years.

The institution must submit audited financial statements.

The institution must have assets of at least $50 million and a net worth to liability ratio of 3.5 to 1. For calculations, net worth does not include subordinated debt and Reserves for Allowance for Loan Losses.

City investments of less than 180 days to maturity can use a net worth to asset ratio of 3 to 1.

Investments in Credit Unions require an Equity (net worth) to Asset Value of 5.0%. The loan balance to share draft ratio is compared to industry standards, but should not exceed 90%. The City may invest funds for a period up to 120 days in institutions with a Regular Reserve to Loan Balance ratio of at least 3.25%. For longer periods of time, the ratio must be at least

4.0%.

In addition, examination is made of the Reserve for Loan Losses category to evaluate the financial trend of the institution's asset base. Comparison is made of institution ratio values to the industry averages.

Under deposits, if data is available, we track the ratio of $250,000 certificates of deposit (brokered money) to the total deposit base. A percent greater than 50% is an area of concern.

Whenever possible, the use of several years' financial data is evaluated to present a trend of activity in the institution.

We also require that interest be paid to the City on a monthly basis (current state law only requires quarterly payment). We do not place more than $250,000 in a savings and loan, small bank, or credit union.

VIII. Safekeeping and Custody
Delivery vs. Payment
All investment transactions conducted with deliverable securities will be executed on a delivery versus payment basis. Deliverable securities will be held in safekeeping by a third party custodian January 28, 2025

designated by the City. The custodian will be required to provide timely (written or on-line) confirmation of receipt and monthly position and transaction reports.

IX. Reporting Requirements
Monthly Reporting
The Director of Finance & Administrative Services will provide to the City Council monthly investment reports that provide a detailed summary of transactions in the City’s portfolio.

Quarterly Reporting
The Director of Finance & Administrative Services will provide to the City Council quarterly investment reports which provide a detailed summary of the status of the investment program. The quarterly report will contain the following:
• The type of investment, issuer, and date of maturity par and dollar amount invested on all securities, investments and moneys held by the local agency. • A description of any of the local agency's funds, investments, or programs that are under the management of contracted parties, including lending programs. • A current market value as of the date of the report and the source of this same valuation for all securities held by the local agency, and under management of any outside party that is not also a local agency or the State of California Local Agency Investment Fund. • A statement of compliance with the Government Code and this policy. • A statement denoting the ability of the local agency to meet its pool's expenditure requirements for the next six months, or provide an explanation as to why sufficient money shall, or may, not be available.

X. Performance Standards
The City’s portfolios are managed with the objective of obtaining a market rate of return, commensurate with identified risk constraints and cash flow characteristics. Because the composition of the portfolio fluctuates, depending on market and credit conditions, various indices will be used to monitor performance.

XI. Investment Advisor Review
The performance of the City’s investment advisor and investment advisory firm shall be reviewed annually based on the following criteria:
• Understanding of the city’s overall investment program and the investment objectives and constraints unique to the city, and approach to management of the city’s portfolio. • Experience, resources, and qualifications of the firm and individuals assigned to this account. • Experience of the firm in managing state/local/district government reserve funds.

January 28, 2025

• Performance of the managed portion of the city’s portfolio. • Reporting methodology and additional investment of financial services offered or available through affiliation.
• Fees, relative to services.

XII. Policy Considerations
This policy shall be reviewed on an annual basis. Any changes must be approved by the investment officer and any other appropriate authority, as well as the individual(s) charged with maintaining internal controls.

COUNCIL AGENDA
January 28, 2025
TO: The Honorable Mayor and Members of the Council
SUBJECT: Annual Comprehensive Financial Report (ACFR) - Year Ended June 30, 2024 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 two 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 2023-24 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.

3.2 Council Agenda- ACFR June 30, 2024
January 28, 2025

•
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.

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 S20,500,584 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 $995,737 (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 ACFR presents expenditure information without regard to the anticipated use of reserves (he., 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.

Comparing the City’s General Fund revenues versus expenditures results in a “surplus” of $17,560,039 (page 99) at year-end. However, when excluding reserves for Capital Improvement Projects (CIP) and Equipment Replacement for carry-over use the next fiscal year, the General Fund realized a revised $12,591,845 surplus. Furthermore, the surplus reflects a one-time internal exchange and use of $7,420,410 in American Rescue Plan Act of 2021(ARPA) Funds on department operations in place of General Funds. Although General Fund monies will fund Council Agenda- ACFR June 30, 2024
January 28, 2025

future projects in the same amount, on an annual basis the exchange amount is included in the surplus. When excluding it, the revised surplus is $5,171,435. This is still greater than the amount previously anticipated when developing the budget and in line with the City’s long-term financial plan. The plan projects revenues and expenditures out 20 years and has identified a need for larger 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 $1,534,381. The largest component of this higher amount was Investment Income ($748,971) 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 99 of the ACFR.

Sales tax revenues came just under the budgeted amounts. Traditional sales tax revenues (also known as Bradley-Burns) were slightly lower than their budgeted amount by $123,755 (0.7%).

Locally, “brick and mortar” sales remained strong, but plateaued through the year. Measure L sales tax revenues (the City’s local transaction sales tax measure) generated $274,972 or 2.0% less than budgeted in its fourth year. In its first three years the local 0.75% transaction and use tax had been tracking higher (relative to the 1% Bradley-Burns 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 $555,439. The largest component was Refuse Collection fees, with revenues surpassing its budget estimate by $225,750.

Utility User’s Tax (UUT) revenue was higher than budget estimates by $98,274. This is largely reflective of higher commodity rates in the electricity sector during the year.

Property tax revenues were higher than expected by $161,600 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 $13,104,805. The vast majority of this amount ($11,110,686) represents funds that have been already budgeted for specific CIPs (typically completed over multiple years), but have not been spent. Much of the $11,110,686 above is allocated to the Culture and Leisure function, with expenditures $8,421,809 less than anticipated.

Council Agenda- ACFR June 30, 2024
January 28, 2025

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

The remaining portion ($1,994,119) of savings are due to operational activities. There were significant savings ($867,011) 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 ($2,073,561) 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 $17,560,039 (without factoring in anticipated use of reserves). In general terms, the City has very 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 $377,488 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 $3,892,769 from the prior year. It was primarily due to the increase in funds committed to the economic uncertainties reserve.

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. A new category in this year’s report is the ARPA Exchange (balance). As previously mentioned, it provides set-aside funds for future projects. Overall, this component increased by $14,724,112 with $4.0 million going into the Measure L long-term reserve.

The Unassigned component, at $2,616,589, is available to be allocated as needed.

GFOA Financial Reporting Award - Fiscal Year ending June 30, 2023 Recently, the GFOA awarded the Certificate of Achievement for Excellence in Financial Reporting to the City of Lakewood for the prior year FY 2022-23 ACFR. This is the 42nd 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.

Ms. Sophia Kuo from The Pun Group will present this award to the Mayor and Council.

Council Agenda- ACFR June 30, 2024
January 28, 2025

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, 2024.
• Accept the GFOA Certificate of Achievement for Excellence in FinancialRfsporting award for the Fiscal Year ended June 30, 2023. s'
Jose Gomez Thaddeus McCormack
Director of Finance & Administrative Services City Manager Attached: City of Lakewood ACFR for the Fiscal Year ended June 30, 2024

CITY OF LAKEWOOD, CALIFORNIA

ANNUAL COMPREHENSIVE

FINANCIAL REPORT

WITH REPORTS ON AUDIT

BY INDEPENDENT

CERTIFIED PUBLIC ACCOUNTANTS

FOR THE YEAR ENDED
JUNE 30, 2024
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, 2024
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 Schedules:

General Fund .................................................................................................................................................. 99 American Rescue Plan Act Special Revenue Fund ...................................................................................... 100 Notes to Budgetary Comparison Schedules ...................................................................................................... 101 City of Lakewood
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
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 ..................................................... 102 Public Agency Retirement System Defined Benefit Plan ............................................................................ 104 Schedule of Contributions - Pensions:

California Public Employees’ Retirement System Defined Benefit Plan ..................................................... 106 Public Agency Retirement System Defined Benefit Plan ............................................................................ 108 Schedule of Changes in Net Other Postemployment Benefits Liability and Related Ratios Other Postemployment Benefits Plan ........................................................................................................... 110 Schedule of Contributions:

Other Postemployment Benefits Plan ........................................................................................................... 112 Supplementary Information:

Housing Admin and Program Capital Projects Fund ................................................................................... 117 Lakewood Capital Improvements Capital Projects Fund ............................................................................. 118 Nonmajor Governmental Funds:

Combining Balance Sheet ............................................................................................................................ 121 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances .................................... 126 Schedules of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual:

AB2766 Special Revenue Fund ............................................................................................................. 131 Beverage Container Recycle Grant Special Revenue Fund ................................................................... 132 CA Natural Resources Agency Grant Special Revenue Fund ............................................................... 133 Community Development Block Grant Special Revenue Fund ............................................................. 134 LA County Measure M Special Revenue Fund ..................................................................................... 135 Measure R Special Revenue Fund ......................................................................................................... 136 Measure W Special Revenue Fund ........................................................................................................ 137 Miscellaneous Special Revenue Fund .................................................................................................... 138 Open Space Special Revenue Fund ........................................................................................................ 139 Park Dedication Special Revenue Fund ................................................................................................. 140 Prop A Recreation Special Revenue Fund ............................................................................................. 141 Prop A Transit Special Revenue Fund ................................................................................................... 142 Prop C Transportation Special Revenue Fund ....................................................................................... 143 Permanent Local Housing Allocation Program (“PLHA”) Grant Special Revenue Fund ..................... 144 Road Maintenance and Rehab Account Special Revenue Fund ............................................................ 145 SB2 Housing Grant 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 Internal Service Funds:

Combining Statement of Net Position .......................................................................................................... 155 Combining Statement of Revenue, Expenses, and Changes in Net Position ............................................... 156 Combining Statement of Cash Flows ........................................................................................................... 157 City of Lakewood
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
Table of Contents (Continued)
Page
STATISTICAL SECTION (Unaudited)
Description of Statistical Section Contents ............................................................................................................... 161 Financial Trends:

Net Position by Component – Last Ten Fiscal Years ......................................................................................... 162 Changes in Net Position – Expenses and Program Revenues – Last Ten Fiscal Years ...................................... 164 Fund Balances of Governmental Funds – Last Ten Fiscal Years ....................................................................... 168 Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years .................................................... 170 Revenue Capacity:

Major Tax Revenue By Sources – Last Ten Fiscal Years ................................................................................... 173 Taxable Sales by Category – Last Ten Calendar Years ...................................................................................... 174 City Sales Tax Rates – Last Ten Fiscal Years .................................................................................................... 176 Assessed Value and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years .............................. 177 Direct and Overlapping Property Tax Rates – Last Ten Fiscal Years ................................................................ 178 Principal Property Taxpayers – Current Year and Nine Years Ago ................................................................... 179 Property Tax Levies and Collections – Last Ten Fiscal Years ........................................................................... 181 Debt Capacity:

Ratios of Outstanding Debt by Type – Last Ten Fiscal Years ............................................................................ 182 Direct and Overlapping Debt .............................................................................................................................. 185 Legal Debt Margin Information – Last Ten Fiscal Years ................................................................................... 186 Pledged-Revenue Coverage – Last Ten Fiscal Years ......................................................................................... 188 Demographic and Economic Information:

Demographic and Economic Statistics – Last Ten Calendar Years .................................................................... 190 Operating Information:

Full-Time City Employees by Function – Last Ten Fiscal Years ....................................................................... 191 Operating Indicators by Function – Last Ten Fiscal Years ................................................................................. 192 Capital Assets Statistics by Function – Last Ten Fiscal Years ........................................................................... 194

i
Cassandra Chase Steve Croft
Vice Mayor Council Member
David Arellano Jeff Wood
Council Member Council Member

Todd Rogers
Mayor
December 10, 2024
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, California (the “City”). 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 in the United States of America (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 for the fiscal year ended June 30, 2024.

This report consists of management’s representations concerning the finances of the City. 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 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’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’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 for the fiscal year ended June 30, 2024 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’s financial statements for the fiscal year ended June 30, 2024 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, incorporated in 1954, is located 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 occupies a land area of 9.5 square miles and serves a population of 82,713 as of the 2020 census.

The City 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 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 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’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 is primarily a
residential community with
only 6% of the City zoned for
commercial use. The City is
home to one of the largest
malls in 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.

For the City, retail sales is the economic indicator that best heralds the City’s financial status. Sales tax revenues account for about 40% of all General Fund revenues. There are over 4,000 businesses (including home occupations) located in Lakewood that helped generate over $17.6 million in “BradleyBurns” sales tax revenue for the City in Fiscal Year 2023-24. This amount was supplemented by approximately $13.5 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 58% 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, which ebbed and flowed during the COVID-19 pandemic but has returned to a similar trajectory seen prior to the pandemic.

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 sales tax
revenue to online shopping.

Historically, “Bradley-Burns” sales tax
collected from online sales had been
disbursed to cities through 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.
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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, as well as providing the foundation for long-term economic stability and helping address the City’s aging facilities and infrastructure.

Notwithstanding the transition through and out of historically high inflation, economic development in the City added a number of retailers in the past year. It allowed for expanded shopping and dining opportunities, as well as adding 240 full-time and 267 part-time jobs from over 173 new businesses in Lakewood, including home occupation businesses. Among the new businesses opening or expanding during the year were WalMart Fulfillment Center, Biolife Plasma, Phenix Salons, Savers, Sender One, Padekua Café, Zoom Room, Footlocker and Zumiez.

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.

During the year, the County Assessor
increased property tax assessments by
2%, the maximum allowed by law. The
last recession saw the County Assessor
lower 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 Proposition 8 reductions steadily decreased over recent years as property values rose considerably. This year, however, saw a change with about $38 million in net Proposition 8 values reduced from the prior year as mortgage interest rates rose and certain property values slightly dipped. Citywide, values still rose with the top two factors being transfer of ownership ($300 million) and the annual CPI increase ($225 million) largely accounting for the overall taxable value increase of more than $564 million. As in past years, the main driver of the increase was almost entirely residential properties at $562 million.

The total assessed value of real
property in the City was $12.3 billion
for Fiscal Year 2023-24, a 4.8%
increase from the previous year. The
growth was moderate, but lower than
the County’s rate of 5.9%. Overall, the
housing market has slowed in the last
two years after real estate values soared
during the COVID-19 pandemic.

Nevertheless, the sales price for a
median single-family Lakewood home
still increased 4.9%, from $810,000 to
$850,000 during the last year. While
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mortgage interest rates remain at levels not seen in almost two decades, many experts claim that the shortage of housing supply continues to fuel home price increases.

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 2024-25 due to former LRA bonds being fully paid.

Property tax revenue in Fiscal Year
2023-24 increased by 2.9% over the
prior year, exceeding budget
expectations by 2.3%. It is again
expected to also reflect a modest
increase in Fiscal Year 2024-25.

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. As property tax in-lieu of vehicle license fees, it accounts for 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 2023-24, over 4,000 construction and remodeling permits were issued, which is significant but slightly less than the prior year after four consecutive years of growth.

City revenues are also affected by changes
in the commodity markets. The City’s
assessed utility user’s tax (UUT) revenue
totaled over $3.8 million and represents

4.9% of General Fund revenues. The 3%
tax is assessed on communications,
electricity, natural gas and water use.

Fiscal Year 2023-24 revenues decreased
about $15,000 across all four utility areas
when compared to the prior year. While
electricity and water UUT revenues
experienced modest increases, they were
slightly more than offset by lower natural gas and telecommunications UUT revenues. Lower gas commodity prices during the year were largely responsible for the natural gas component revenues. The telecommunications UUT revenue is less than one-quarter of its 2010 peak year and saw a 4% decrease from the prior year to $414,859 in Fiscal Year 2023-24. Significant changes in technology have shifted core telecommunications usage outside of those subject to the City’s UUT.

Lakewood’s employment rate depends largely on the regional job market. The unemployment rate generally tracks on the same trajectory as the County of Los Angeles but lower in percentage. Outside of the extraordinary rate seen during the COVID-19 pandemic, Lakewood’s rate has ranged from 3.6% *Budget
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to 5.2% over the last decade. As of
October 2024, Lakewood’s
unemployment rate had risen slightly to

5.2% with the County rate at 6.1%.

Major employers located within city
limits are Long Beach Unified School
District, County of Los Angeles, UCI
Health – Lakewood (formerly
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 3.9%
in 2024. After reaching 40-year highs
in 2022, 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, increased them sharply in an
attempt to lower the CPI to their
targeted level. As it has declined, the
Reserve has slighty lowered rates and
is likely to continue doing so into the
foreseeable future.

Economic Outlook
Beacon Economics provides market insights and forecasts for communities across the western United States. In their recent analysis Beacon states, “Real median household income in California remains substantially higher than the national average, with the latest data showing over $85,000 annually - approximately 15% above the national median of less than $75,000 even with this income edge, California’s economy is following the same trend as the rest of the country. Nominal GDP grew at an annualized rate of 4.42% in Q1 2024, down from 8.51% in Q1 2023. When adjusted for inflation, real GDP growth has decelerated even further, from 3.99% in Q1 2023 to just 1.25% in Q1 2024.

Job growth is solid and while unemployment has climbed…California is still adding jobs, with an average of 23,925 jobs gained per month since August 2023. All in all, the foundation of California’s economy is robust, and we can see that in rising home prices and low vacancy rates…But it’s not all sunshine and roses. The state faces real challenges: misguided housing and minimum wage policies, the high cost of doing business, and skyrocketing energy expenses are creating headwinds.” The HdL Companies, the City’s sales tax revenue consultant also provided a restrained outlook stating, “For Fiscal Year (FY) 2024-25, 1% to 1.5% growth expectations have been revised downwards due to second quarter 2024 performance. Flat growth compared to last year is anticipated in the near term, with

2.5% to 3% growth for FY 2025-26, aligning with historical trends. Key factors include interest rate reductions, the continued growth of e-commerce, and the potential impact of lower gas prices on consumer spending. These elements will shape the short and long-term economic outlook.

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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 as the City’s entire infrastructure of streets, 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, considering 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.

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 7,398 trees, removed over 239 trees determined to be in poor condition, and replanted 259 trees throughout the City.
· Removed and replaced 1.8 miles of curb & gutter and 6.2 miles of sidewalk, enabling better movement of pedestrians and run-off water throughout the City. · Reconstructed 55 ADA curb ramps to bring them up to current standards.

Parks and Community Facilities Projects and Activities:
· Park hardscape improvements were completed at Rynerson Park and Biscailuz Park. · Two bridges that connect Studebaker road to Rynerson Park were refurbished inclusive of refabrication of the steel girder and rail supports, and replacement of the wood decking. viii
· New security cameras were installed at Arbor Yard, Youth Center, Del Valle Park, Bloomfield Park, Boyar Park, San Martin Park, Bolivar Park, Biscailuz Park, The Centre, City Hall, and Weingart Senior Center, Burns Community Center, and Mayfair Park. · Bathroom improvements were completed at Mayfair Park. · A new fire alarm system installation commenced at The Centre. · Kitchen improvements were completed at Burns Community Center, with repair of drywall, removal and replacement of kitchen cabinets, painting, and flooring improvements. · Painting Improvements were completed at The Centre, with new paint in the lobby and second floor foyer.
· Carpet was replaced at The Centre Weingart Ballroom.
· New LED lighting and acoustical ceiling tiles were installed at The Centre Weingart Ballroom · Playground surfacing improvements were completed at Palms Park, Mayfair Park, and San Martin Park.
· Game court improvements were finalized at Palms Park with the installation of a new mini pitch, court surfacing, and LED lighting improvements.
· A new modular office trailer was installed at City Hall to accommodate staff from the Public Works and Community Development departments.
· Refurbishment of City Hall commenced with the renovation of the Public Works, Community Development, and Finance & Administrative Services departments.

Parks, Sports, Human Services and Special Events
· The Civic Center Block Party was held in late June 2024. Event elements included live entertainment, a food court, a family fun zone, and a spectacular fireworks display. Over 20,000 people attended the spectacular event.
· The inaugural LeadHer Lakewood series aimed at a celebration of women’s empowerment and leadership in Lakewood during Women’s History Month was held during March 2024. Over the four-week series, about 250 people attended and 20 Lakewood-based businesses and non-profit organizations played a direct role in bringing the event to women in the community. · The aquatics program provided almost 2,500 swim lessons and aquatic fitness classes for over 320 participants. A total of 14,821 individuals participated in recreation swim. · The Recreation and Community Services department processed 1,336 facility reservations, inclusive of facility meeting rooms and sports fields uses, totaling $204,000 in revenue for the year.
· Contract class offerings and participation saw a slight increase. The 1,513 class offerings were attended by 8,343 participants, a 2.17% increase in participation in the fiscal year. · The Project Shepard program continued to serve residents in need throughout the year. Backpacks with school supplies were handed out to 460 school-age children in August for the school year.

In December, 1,761 Lakewood residents (467 families) were provided Project Shepard Holiday assistance, including grocery store gift cards, boxes of food and bags of toiletry items for both Thanksgiving and December holidays. Toys were included for 780 children, as donations were given according to their holiday wish lists.
· Staff took over management of the Lakewood Equestrian Center (LEC) in November 2023. Staff are responsible for administrative oversight, facility and grounds maintenance, office administration, facility supervision, operational expenses and revenues, and internal and external communications.

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Public Safety Activities:
· Sustained implementation of key components of the Neighborhood Safety Enhancement Plan, included:
o Dedicated Sheriff’s Deputy crime suppression unit
o Utilization of contracted private security to perform targeted overnight patrols o Installation of 12 new generation license plate reader cameras throughout the city · Organized multiple events for residents to meet and interact with members of law enforcement and Public Safety Department staff. These included Coffee with a Deputy bi-monthly, two Kids and Cops events, and the Connect with Public Safety series with community meetings 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 second time in Lakewood, reaching over 150 residents to provide and install free smoke detectors in homes throughout the city. · Provided personal safety and good decision-making education to Lakewood elementary schoolaged students through the Healthy and Safe Initiative program. Public Safety staff partnered with American Red Cross to deliver educational topics on emergency preparedness and personal safety to Lakewood elementary school students.
· Provided weekly targeted traffic monitoring in residential zones based on community reports through Lakewood’s service request system using radar trailers with variable messaging boards.

Data collected supported Los Angeles County Sheriff Department (LASD) traffic enforcement citywide.
· Increased Public Safety Officer (PSO) program staff to multiply reach of services within the community. PSOs provide essential field support to LASD Deputies working within Lakewood and provided key services to Lakewood residents through service request response, city-wide patrols and municipal code enforcement to enhance quality of life. · Continued the Community Prosecutor Program, a contract service through the Los Angeles County 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. · Continued the services 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. · Increased the number of contracted dedicated shelter beds at Salvation Army’s Bell Shelter for Lakewood-based individuals experiencing homelessness.
· Developed integrated emergency management staff education and training program, “TTEC” (Tabletop Exercise Committee), comprised of two staff from each City department. TTEC members design and deliver an annual tabletop exercise of an EOC activation in response to a probable event that could impact the Lakewood community. · Received a Pre-Disaster Mitigation Planning Grant from FEMA through Cal OES to update Lakewood’s Local Hazard Mitigation Plan and initiated RFP process to secure consultant services to facilitate the update process in the next year.

Water System Improvements:
· Completed commissioning of Well 13A Water Treatment Plant – allowing the City to resume production and continued use of an existing water well that would otherwise be rendered inoperable.
· Completed the fire hydrant flushing program with over 1,500 fire hydrants flushed throughout the City to improve overall water quality.
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· Upgraded and replaced eight new fire hydrants within the Lakewood Country Club area to enhance fire flow protection.
· Completed installation of over 12,000 feet of new 8-in PVC water mains to improve serviceability, water quality, fire protection and water supply reliability. · Completed pipeline assessment and preliminary design of the proposed Pure Water Southern California Project pipeline alignment within the City.
· Upgraded and replaced existing SCADA antennae to enhance communications for water operations.
· Installed new Halogen chlorine analyzers, replaced chemical feed pumps, recoated storage tanks and improved water sample stations.
· Completed the 2023 Annual Water Quality Report meeting 100% Federal and State drinking water standards.
· Successfully completed the 2023 Water Loss Audit per AWWA Standards.

Commercial Development:
· Walmart Fuel completed the construction of a fulfillment pick-up center for online sales. · The City celebrated the grand opening of various small businesses, including: BioLife Plasma, Phenix Salons, Savers, Sender One, Padekia Café, Zoom Room, Footlocker and Zumiez.

Residential Programs and Development:
· The City continued offering the Home Improvement Loan 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 $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 four grants were issued.
· A total of 120 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 second cohort of the Lakewood Leadership Academy took place, which continues to educate and develop effective community leaders to take an active role towards building a stronger Lakewood. The second class of 45 residents completed the eight-month program, and emerged as wanting to be more involved in the community because of the program. · The City Council approved the beautification of City-owned utility boxes throughout the City.

The program has transformed several boxes with historical and modern photographs of the City that reflect the Lakewood community.

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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.

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 75.72% funded as of June 30, 2023, 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 95.4% funded as of June 30, 2024, 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 103% funded as of June 30, 2024 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. 100 – In June 2022, the GASB issued Statement No. 100, Accounting Changes and Error Corrections—An Amendment of GASB Statement No. 62. The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. The requirements of this Statement are effective for accounting changes and error corrections made in fiscal years beginning after June 15, 2023, and all reporting periods thereafter. There were no significant impacts on the City’s financial statements.
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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, 2023. This was the 42nd consecutive year that Lakewood has obtained 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, Accounting & Grants Manager 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

TODD ROGERS
Mayor

CASSANDRA CHASE DAVID ARELLANO
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
J. PATRICK McGUCKIAN
Acting 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
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City Manager
Deputy
City Manager
City Attorney
City Council
Successor
Housing
Agency
Successor
Agency
Planning &
Environment
Commission
Community
Safety
Commission
Recreation &
Community
Services
Commission
Administration
Finance &
Administrative
Services
Communications Community
Development Public Safety
Lakewood
Public
Financing Authority
People of Lakewood
Recreation &
Community
Services
Water
Resources
Public Works
xiv
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, 2023
Executive Director/CEO
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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, 2024, 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, 2024, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America 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.

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

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, American Rescue Plan Act Special Revenue Fund, the Budgetary Information, the Schedules of Changes in Net Pension Liability and Related Ratios - Pensions, 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

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 November 25, 2024, 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
November 25, 2024
4 City of Lakewood
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2024
5 As management of the City of Lakewood, California, (City), we offer readers of the City’s financial statements, this narrative overview and analysis of the financial activities of the City for fiscal year ended June 30, 2024. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, 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, 2024, by $285,267,411.

Of this amount, $87,372,590 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 $24,510,437. The governmental activities increased by $22,854,700 and business-type activities by $1,655,737 at the end of fiscal year June 30, 2024.
· Long Term Debt: The City’s total debt decreased by $1,028,875. This was attributable to normal scheduled debt service payments and the American with Disabilities (ADA) loan payoff. · Governmental Funds: As of June 30, 2024, the City’s governmental funds reported a combined ending fund balance of $142,368,311. Approximately 63.8 percent of the ending fund balance, $90,833,928, 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, 2024, committed, assigned and unassigned fund balance of the general fund was $87,725,964 out of total fund balance of $98,972,686. All but $2,616,589 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 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, 2024
6 Both of the government-wide financial statements distinguish functions of the City 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 include general government, public safety, transportation, community development, health and sanitation, and culture and leisure.

The government-wide financial statements include the City 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, and therefore has been included as an integral part of the government.

The government-wide financial statements can be found on pages 18 - 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, 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 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 maintains twenty five 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 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 26 - 32 of this report.

City of Lakewood
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2024
7 Proprietary funds. The City 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’s various functions. The City uses internal service funds to account for its central garage and graphics operations. Because all of these services predominately benefit governmental rather than business-type functions, they have been included within governmental activities in the government-wide financial statements. During the year end June 30, 2024, the City closed the internal service funds into the City’s General Fund.

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 34 - 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’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 43 - 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 49 - 95 of this report.

Other information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City’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 99-113 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 121-157 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, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $285,267,411 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, 2024
8 2024 2023 2024 2023 2024 2023
Current and other as sets $ 154,596,332 $ 141,930,605 $ 19,615,196 $ 23,553,005 $ 174,211,528 $ 165,483,610 Capital assets 126,290,449 122,825,268 37,691,260 34,640,067 163,981,709 157,465,335 Total Ass ets 280,886,781 264,755,873 57,306,456 58,193,072 338,193,237 322,948,945 Deferred Outflow of Resources 14,016,744 15,728,144 1,540,459 1,722,908 15,557,203 17,451,052 Long-term liabilities outstanding 40,000,946 40,863,838 9,345,257 10,189,380 49,346,203 51,053,218 Other liabilities 9,609,440 16,551,449 3,488,137 5,282,866 13,097,577 21,834,315 Total Liabilities 49,610,386 57,415,287 12,833,394 15,472,246 62,443,780 72,887,533 Deferred Inflow of Resources 4,735,399 5,365,690 1,303,850 1,389,800 6,039,249 6,755,490 Net positions:

Net Investment in Capital Assets 125,001,849 121,076,026 31,927,110 27,470,407 156,928,959 148,546,433 Restricted 40,965,862 41,623,987 - 40,965,862 - 41,623,987 Unrestricted 74,590,029 55,003,027 12,782,561 15,583,527 87,372,590 70,586,554 Total Net Position 240,557,740 $ $ 217,703,040 $ 44,709,671 $ 43,053,934 $ 285,267,411 $ 260,756,974 City of Lakewood
Net Position
Governmental Activities Bus ines s-type Activities Total By far, the largest portion of the City’s net positions, 55.0 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 uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’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 other sources since the capital assets themselves cannot be used to liquidate these liabilities.

An additional portion of the City’s net position, 14.4 percent, represents resources that are subject to external restrictions on how they may be used. The remaining balance of $87,372,590 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 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,

71.4 percent of the City’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, 2024
9 2024 2023 2024 2023 2024 2023
Revenues:

Program revenues:

Charges for services $ 14,671,023 $ 15,163,516 $ 12,992,428 $ 13,497,514 $ 27,663,451 $ 28,661,030 Operating grants and contributions 26,237,087 16,264,335 734,065 26,971,152 - 16,264,335 Capital grants and contributions 1,534,046 2,532,217 - 1,534,046 - 2,532,217 General revenues:

Sales taxes 31,208,121 31,642,524 - 31,208,121 - 31,642,524 Property taxes 18,819,630 18,058,390 - 18,819,630 - 18,058,390 Franchise taxes 1,722,859 1,706,982 - 1,722,859 - 1,706,982 Business operation taxes 699,707 645,799 - 699,707 - 645,799 Utility user taxes 3,836,274 3,851,673 - 3,836,274 - 3,851,673 Other taxes 409,272 404,168 - 409,272 - 404,168
Investment income 4,169,777 2,221,985 426,194 638,544 4,595,971 2,860,529 Gain on sale of property 85,029 146,530 - - 85,029 146,530 Total revenues 103,392,825 92,638,119 14,152,687 14,136,058 117,545,512 106,774,177 Expenses:

General government 14,693,300 11,937,554 - 14,693,300 - 11,937,554 Public safety 19,847,784 19,143,257 - 19,847,784 - 19,143,257 Transportation 9,196,277 7,344,923 - 9,196,277 - 7,344,923 Community development 11,541,397 6,852,859 - 11,541,397 - 6,852,859 Health and sanitation 7,018,202 6,601,028 - 7,018,202 - 6,601,028 Culture and leisure 16,854,174 15,790,357 - 16,854,174 - 15,790,357 Unallocated infrastructure depreciation 2,960,331 2,853,732 - 2,960,331 - 2,853,732 Interest and fiscal charges 7,388 11,291 - - 7,388 11,291 Water - 10,916,222 - 11,752,016 10,916,222 11,752,016
Total expenses 82,118,853 70,535,001 10,916,222 11,752,016 93,035,075 82,287,017 Excess (deficiency) of revenues over expenses
before transfers 21,273,972 22,103,118 3,236,465 2,384,042 24,510,437 24,487,160 Transfers (net) 1,580,728 1,795,700 (1,580,728) (1,795,700) - - Changes in net position 22,854,700 23,898,818 1,655,737 588,342 24,510,437 24,487,160 Net position at beginning of year, 217,703,040 193,804,222 43,053,934 42,465,592 260,756,974 236,269,814 Net position at end of year $ 240,557,740 $ 217,703,040 $ 44,709,671 $ 43,053,934 $ 285,267,411 $ 260,756,974 City of Lakewood
Changes i n Net Positi on
Governmental Activities Business-type Activities Total
Additional information on the change in net position can be found on pages 20 – 21 of this report.

Governmental activities. Overall, governmental revenues increased by $10,754,706 or 11.6 percent and expenditures increased by $11,583,852 or 16.4 percent from prior year. Key elements of the change are as follows:
· Operating Grants and Contributions increased by $9,972,752. The increase was derived from a combination of several grants, with the American Rescue Plan Act Special Revenue Fund (ARPA) having an increase of $8,887,645. The next ones with the highest increase are the Road Maintenance and Rehabilitation Account (RMRA) and Gas Tax combining for $513,460, and METRO Local Return funds Prop A and Prop C combining for $175,000. · Investment income increased by $1,947,792 due to the City’s investment earnings revenue benefitting from the sharp rise in interest rates.

City of Lakewood
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2024
10 · Charges for Services experienced an overall decrease of $492,493. This category includes building and safety permits, culture and leisure programs and facilities, rents and concessions, and other revenue. There was a combined increase of $937,448 mainly attributable to the new revenues collected in conjunction with the Lakewood Equestrian Center operations of $569,285 and an increase in Refuse Collections of $384,901. This was offset by one-time legal settlement revenue during the prior year in the amount of $1,293,969. · The Property Tax and Sales Tax revenues increased by a combined total of $326,827. Property tax revenues rose by $761,240 mainly due to the higher valuation on Lakewood properties. Sales tax decreased slightly by $434,403, indicating a flattening out of sales tax revenues.
· Community Development’s expenditures increased by $4,688,538 mainly due to the recording of a sale of properties at a loss, the creation of the new Lakewood Equestrian Center fund and its associated costs, and the increase in contracted engineering and consulting services for capital improvement projects. · General Government expenditures increased by $2,755,746 due to the purchase of vehicles and equipment, added contributions to the PARS pension, higher costs for fire and security alarm services, and the higher costs for general liability insurance.
· Culture and Leisure expenditures increased by $1,063,817 due to an uptick in hardscape repairs, the new smart irrigation system at three (3) parks, and the annual increases to salaries and benefits. · The Water Fund transferred $1,795,700 into the General Fund to defray costs for the Water Fund’s use of General Fund’s staff, resources, facilities, and infrastructure. · The City was allotted a total of $11.3 million in ARPA funding. Of that, the City spent the full amount as of June 30, 2024, ahead of the December 31, 2026 grant deadline.

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 $505,586 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 the winter of 2024 adversely impacted revenues. For the year ended June 30, 2024, the City’s business-type activities’ change in net position was $1,655,737, an increase of

3.9 percent compared to last year. During the year, the water fixed and volumetric rates were adjusted to help defray increases in the cost of pumping and distributing water and the administration of the utility and infrastructure improvements. Major improvements on the horizon include $6.6 million for a water main construction project, $3.5 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.

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

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

City of Lakewood
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2024
11 As of the end of the fiscal year, the City’s governmental funds reported a combined ending fund balance of $142,368,311, an increase of $20,500,584 in comparison with the prior year. As noted in the Governmental Activities section, the increase was primarily due to the increases in operating grants in contributions from grants received from several entities. Of the City’s governmental funds ending fund balance, $90,833,928 or 63.8 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, $51,534,383, 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’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail.

The unrestricted net position of the Water Enterprise fund at the end of the year amounted to $12,782,561, a decrease of $3,460,966 from the prior year. This decrease was due to directing funds into capital improvements, including the drilling and equipping of Well 28 and the completion of the Well 13A treatment system. These funds will be used to fund future water operations and planned capital improvements. Other factors concerning the specific of this fund have already been addressed in the discussion of the City’s business-type activities.

Major and Nonmajor Fund Financial Highlights
The General Fund is the chief operating fund of the City. At the end of FY 2023-24, committed, assigned and unassigned fund balance of the General Fund was $87,725,964, while total fund balance was $98,972,686. The General Fund’s ending fund balance increased by $17,560,039 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 88.6 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 $2,128,043. The Investment Income, Rents, and Concession category was favorable with an increase of $2,385,502. Current service charges and Intergovernmental revenues increased by $304,234 and $554,841, respectively. The increases were offset by decreases from License and Permits, Fines and Forfeitures, Taxes, and Miscellaneous revenues combining for $1,266,206.

Overall expenditures (including other financing uses) increased by $1,611,833. The biggest change is the decrease to Public Safety by $7,106,003 because of the ARPA fund exchange. See more about the ARPA exchange in the Transmittal Letter section. The rest of the categories increased, with Capital Outlay for Culture and Leisure having the highest increase compared to the other categories by $2,544,864. This was due to multiple projects and purchase of vehicles/equipment. One of the biggest projects completed this year as the City Hall Improvements with an increase of $1,057,000 while vehicle/equipment purchases increased by $984,000.

Aside from the General Fund, the City has other major and nonmajor funds, including American Resue Plan Rescue Plan Act Special Revenue Fund (“ARPA”) Housing Admin and Program Capital Projects Fund, Capital Improvements Projects Fund, and the nonmajor Governmental Funds for Special Revenue sources. The ARPA fund was fully expended in the year. The Housing Admin and Program Capital Projects Fund’s ending fund balance decreased by $3,041,680, mainly due to recognition of the loss from the sale of properties held for resale. The Capital Improvements Projects Fund’s ending fund balance increased by $1,311,349 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 $4,670,876 in comparison to the prior year, mainly due to County and State funds being greater than expenditures during the fiscal year.

City of Lakewood
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2024
12 General Fund Budgetary Highlights
For the fiscal year ended June 30, 2024, the General Fund’s final amended expenditure budget increased over the original budget by $9,067,836, however, actual expenditures were $14,751,974 lower than the final amended budget.

These can be briefly summarized as follows:
· Capital projects that either started in FY 2023-24 or rolled over from previous fiscal years were not completed by June 30, 2024. Multi-year projects that had to be carried over into FY 2024-25 totaled $8,401,000. Some of these projects are as follows: Electrical, HVAC and Roof improvements for $1,838,683; replacement of the generators at City Hall for $731,280, Palms Park improvements for $1,156,384, and Citywide median improvement for $2,107,725.
· Actual expenditures were $3,727,859 lower than the operating final budget due to the following: a number of vacant full-time and part-time positions and savings from positions filled at a lower pay step, lower tree and street maintenance costs during the year, and fewer contracted engineering services, lastly election and legal services expenditures were lower than anticipated.

Capital Asset and Debt Administration
Capital assets. The City’s net investment in capital assets for its governmental and business-type activities as of June 30, 2024, amounts to $163,981,709, an increase of $6,516,374 or 4.1 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.
2024 2023 2024 2023 2024 2023
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 44,251,612 43,187,031 144,937 4,749,839 44,396,549 47,936,870 Infrastructure 36,320,174 38,956,009 - 36,320,174 - 38,956,009 Structures and improvements 24,703,445 21,174,358 23,099,959 14,912,181 47,803,404 36,086,539 Equipment 3,790,465 2,186,726 12,271,104 12,642,339 16,061,569 14,829,065 Lease assets 74,102 119,069 - - 74,102 119,069
Subscription assets 109,628 161,052 240,674 401,122 350,302 562,174 Total $ 126,290,449 $ 122,825,268 $ 37,691,260 $ 34,640,067 $ 163,981,709 $ 157,465,335 City of Lakewood
Capital Assets (Net of depreciation and Amortization)
Governmental Activities Business-type Activities Total
Additional information on the City’s capital assets can be found in Note 8 to the basic financial statements.

Long-term debt. At the end of FY 2023-24, the City’s total long-term debt outstanding decreased by $1,028,875, totaling $5,915,962. This was attributable to normal scheduled debt service payments.

City of Lakewood
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2024
13 2024 2023 2024 2023 2024 2023
Loan Payable-MELPA $ - $ 5,506,717 - $ $ 6,106,508 $ 5,506,717 $ 6,106,508 ADA Financing Program 154,123 - - - - 154,123
Lease Payable 60,475 110,343 - - 60,475 110,343
Subscription Liabilities 91,337 159,252 257,433 414,611 348,770 573,863 Total $ 151,812 $ 423,718 $ 5,764,150 $ 6,521,119 $ 5,915,962 $ 6,944,837 City of Lakewood
Summary of Outstanding Debt
Governmental Activities Business-type Activities Total
Additional information on the City’s long-term debt can be found in Note 9 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 recovers from the lingering effects of the COVID-19 pandemic. The City’s sales tax revenues have shown a slow and steady increase but since have plateaued based on recent economic trends. 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 culture and leisure, and a steady flow of activities in building permits as residents look to build more accessible dwelling units (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 slightly increased by 1.0 percent. Employee services costs increased by 8.6 percent in Fiscal Year 2023-24 over that of the prior year. The City is a contract-city where 44.4 percent of the cost of operations is employee service-related, and contract services made up 35.6 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 3.9 percent in 2024. Overall, General Fund contract services decreased by 28.1 percent in Fiscal Year 2023-24 due to ARPA funds defraying some of the operational costs from the General Fund. 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, 2024
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 124,368,827 $ 15,950,451 $ 140,319,278 $ Receivables:

Accounts 9,730,986 1,434,617 11,165,603
Accrued revenue 1,101,682 - 1,101,682
Leases receivables 205,739 45,785 251,524
Prepaid items 58,327 - 58,327
Inventories 92,241 92,081 184,322
Total current assets 134,456,120 18,624,616 153,080,736 Noncurrent assets:

Restricted cash and investments:

Cash in escrow 599,658 - 599,658
Held by City - 58,285 58,285
Notes receivable 2,525,436 2,525,436 -
Leases receivable 937,168 898,066 1,835,234
Receivable from Successor Agency 15,731,858 15,731,858 - Net OPEB asset 346,092 34,229 380,321
Capital assets:

Nondepreciable 61,292,635 2,079,523 63,372,158
Depreciable, net 64,814,084 35,371,063 100,185,147
Intangible assets, net 183,730 240,674 424,404
Total capital assets 126,290,449 37,691,260 163,981,709 Total noncurrent assets 146,430,661 38,681,840 185,112,501 Total assets 280,886,781 57,306,456 338,193,237

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resources related to pensions 12,627,829 1,403,094 14,030,923 Deferred outflows of resources related to OPEB 1,388,915 137,365 1,526,280 Total deferred outflows of resources 14,016,744 1,540,459 15,557,203 Primary Government
City of Lakewood
Statement of Net Position
June 30, 2024
See accompanying Notes to the Basic Financial Statements. 18 Governmental Business-Type
Activities Activities Total

LIABILITIES
Current liabilities:

Accounts payable 5,352,620 2,252,248 7,604,868
Retention payable 688,914 - 688,914
Accrued liabilities 1,049,314 71,665 1,120,979
Accrued interest payable - 8,206 8,206
Unearned revenues 1,446,317 258,374 1,704,691
Long-term liabilities - due within one year 1,072,275 897,644 1,969,919 Total current liabilities 9,609,440 3,488,137 13,097,577 Noncurrent liabilities:

Liabilities payable from restricted assets:

Customer deposits 1,107,816 58,285 1,166,101
Long-term liabilities - due in more than one year 1,095,618 5,087,248 6,182,866 Aggregate net pension liability 37,797,512 4,199,724 41,997,236 Total noncurrent liabilities 40,000,946 9,345,257 49,346,203 Total liabilities 49,610,386 12,833,394 62,443,780

DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources related to pensions 1,534,738 170,526 1,705,264 Deferred inflows of resources related to OPEB 2,105,731 208,259 2,313,990 Deferred inflows of resources related to leases 1,094,930 925,065 2,019,995 Total deferred inflows of resources 4,735,399 1,303,850 6,039,249

NET POSITION
Net investment in capital assets 125,001,849 31,927,110 156,928,959 Restricted for:

Transportation 28,681,870 28,681,870 -
Public safety 67,130 - 67,130
Community development 9,746,509 9,746,509 -
Health and sanitation 262,914 - 262,914
Culture and leisure 2,207,439 2,207,439 -
Unrestricted 74,590,029 12,782,561 87,372,590
Total net position $ 44,709,671 240,557,740 $ 285,267,411 $ Primary Government
City of Lakewood
Statement of Net Position (Continued)
June 30, 2024
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 $ 14,693,300 $ 1,471,591 $ 2,033,071 $ - Public safety 19,847,784 393,394 9,123,818 -
Transportation 9,196,277 11,785,880 - 1,500,282
Community development 11,541,397 2,984,948 924,921 23,225 Health and sanitation 7,018,202 7,530,143 369,397 -
Culture and leisure 16,854,174 2,290,947 2,000,000 10,539 Unallocated infrastructure depreciation 2,960,331 - - - Interest and fiscal charges 7,388 - - -
Total governmental activities 82,118,853 14,671,023 26,237,087 1,534,046 Business-type Activities:

Water 10,916,222 12,992,428 734,065 -
Total business-type activities 10,916,222 12,992,428 734,065 - Total primary government $ 27,663,451 93,035,075 $ 26,971,152 $ 1,534,046 $ Program Revenues
City of Lakewood
Statement of Activities
For the Year Ended June 30, 2024
See accompanying Notes to the Basic Financial Statements. 20 Governmental Business-Type
Functions/Programs Activities Activities Total
Governmental Activities:

General government (11,188,638) $ - $ (11,188,638) $
Public safety (10,330,572) - (10,330,572)
Transportation 4,089,885 - 4,089,885
Community development (7,608,303) - (7,608,303)
Health and sanitation 881,338 - 881,338
Culture and leisure (12,552,688) - (12,552,688)
Unallocated infrastructure depreciation (2,960,331) - (2,960,331) Interest and fiscal charges (7,388) - (7,388)
Total governmental activities (39,676,697) (39,676,697) - Business-type Activities:

Water 2,810,271 - 2,810,271
Total business-type activities 2,810,271 - 2,810,271
Total primary government 2,810,271 (39,676,697) (36,866,426) General revenues:

Taxes:

Sales taxes - Bradley Burns 31,208,121 - 31,208,121
Property taxes 18,819,630 - 18,819,630
Franchise taxes 1,722,859 - 1,722,859
Business operation taxes 699,707 - 699,707
Utility user taxes 3,836,274 - 3,836,274
Other taxes 409,272 - 409,272
Total taxes 56,695,863 - 56,695,863
Investment income 4,169,777 426,194 4,595,971
Gain on sale of property 85,029 - 85,029
Total general revenues 426,194 60,950,669 61,376,863
Transfer:

Transfers (net) 1,580,728 (1,580,728) -
Total transfer (1,580,728) 1,580,728 -
Changes in net position 1,655,737 22,854,700 24,510,437 Net position - beginning of year 43,053,934 217,703,040 260,756,974 Net position - end of year $ 44,709,671 240,557,740 $ 285,267,411 $ Net (Expense) Revenue and
Changes in Net Position
City of Lakewood
Statement of Activities (Continued)
For the Year Ended June 30, 2024
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 $ 86,746,303 $ - $ 2,698,042 $ 3,161,189 Restricted cash and investments:

Cash in escrow - - - 599,658
Accounts receivable 8,026,766 - - 524,993
Prepaid items 58,327 - - -
Inventories 92,241 - - -
Due from other funds 585,844 - - -
Receivable from Successor Agency 11,096,154 - 4,635,704 - Notes receivable - - 2,045,746 -
Leases receivable 1,142,907 - - -
Total assets $ 107,748,542 $ - $ 9,379,492 $ 4,285,840

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable $ 4,709,972 $ - $ 139,939 $ 13,385
Accrued liabilities 1,049,314 - - -
Retention payable 79,157 - - 599,658
Deposit payable 1,106,987 - 829 -
Due to other funds - - - -
Unearned revenue 282,218 - - -
Total liabilities 7,227,648 - 140,768 613,043
Deferred inflows of resources:

Unavailable revenue 453,278 - - 524,993
Deferred inflows of resources related to leases 1,094,930 - - - Total deferred inflows of resources 1,548,208 - - 524,993 Fund balances:

Nonspendable
Prepaid items 58,327 - - -
Inventories 92,241 - - -
Receivables from Successor Agency 11,096,154 - - -
Restricted
Public safety - - - -
Transportation projects and street maintenance - - - -
Community development - - 9,238,724 -
Health and sanitation - - - -
Culture and leisure - - - -
Committed
Self insurance 4,000,000 - - -
Pension and personnel obligations 6,894,823 - - -
Capital projects 7,020,709 - - 3,147,804
Refuse stabilization 1,964,966 - - -
Economic uncertainties 16,684,127 - - -
Assigned
Infrastructure development - 6,000,000 - -
ARPA exchange (balance) 7,420,410 - - -
Measure L CIP reserve 9,263,687 - - -
Equipment replacement - 2,384,230 - -
Contract emergency services - 2,576,423 - -
Legal fees contingency - 1,300,000 - -
Pension obligations paydown 1,000,000 - - -
Measure L long-term reserve 18,600,000 - - -
Unassigned (deficit) 2,616,589 - - -
Total fund balances 98,972,686 - 9,238,724 3,147,804
Total liabilities, deferred inflows of
resources, and fund balances $ - 107,748,542 $ 9,379,492 $ 4,285,840 $ Major Funds
June 30, 2024
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 $ 31,763,293 $ 124,368,827
Restricted cash and investments:

Cash in escrow - 599,658
Accounts receivable 1,179,227 9,730,986
Prepaid items - 58,327
Inventories - 92,241
Due from other funds - 585,844
Receivable from Successor Agency 15,731,858 -
Notes receivable 2,525,436 479,690
Leases receivable 1,142,907 -
Total assets $ 33,422,210 $ 154,836,084

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable $ 489,324 $ 5,352,620
Accrued liabilities - 1,049,314
Retention payable 10,099 688,914
Deposit payable - 1,107,816
Due to other funds 585,844 585,844
Unearned revenue 1,164,099 1,446,317
Total liabilities 2,249,366 10,230,825
Deferred inflows of resources:

Unavailable revenue 163,747 1,142,018
Deferred inflows of resources related to leases - 1,094,930 Total deferred inflows of resources 163,747 2,236,948
Fund balances:

Nonspendable
Prepaid items - 58,327
Inventories - 92,241
Receivables from Successor Agency 11,096,154 -
Restricted
Public safety 67,130 67,130
Transportation projects and street maintenance 26,454,906 26,454,906 Community development 9,596,196 357,472
Health and sanitation 262,914 262,914
Culture and leisure 3,906,515 3,906,515
Committed
Self insurance 4,000,000 -
Pension and personnel obligations 6,894,823 -
Capital projects 10,168,513 -
Refuse stabilization 1,964,966 -
Economic uncertainties 16,684,127 -
Assigned
Infrastructure development 6,000,000 -
ARPA exchange (balance) 7,420,410 -
Measure L CIP reserve 9,263,687 -
Equipment replacement 2,384,230 -
Contract emergency services 2,576,423 -
Legal fees contingency 1,300,000 -
Pension obligations paydown 1,000,000 -
Measure L long-term reserve 18,600,000 -
Unassigned (deficit) 2,576,749 (39,840)
Total fund balances 142,368,311 31,009,097
Total liabilities, deferred inflows of
resources, and fund balances $ 154,836,084 33,422,210 $ Governmental Funds
June 30, 2024
City of Lakewood
Balance Sheet (Continued)
See accompanying Notes to the Basic Financial Statements. 27 28
Total Fund Balances - Total Governmental Funds $ 142,368,311 Amounts reported for governmental activities in the statement of net position are different because:

Nondepreciable assets $ 61,292,635
Depreciable/amortizable assets 64,997,814 126,290,449
1,142,018
Lease payable (60,475)
Subscription liability (91,337)
Compensated absences (2,016,081)
Pensions:

Deferred outflows of resources related to pensions 12,627,829 Aggregate net pension liabilities (37,797,512)
Deferred inflows of resources related to pensions (1,534,738) Other postemployment benefits:

Deferred outflows of resources related to OPEB 1,388,915 Net OPEB liabilities 346,092
Deferred inflows of resources related to OPEB (2,105,731) Net position of governmental activities $ 240,557,740
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, 2024
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 44,985,027 $ - $ - $ - $
Licenses and permits 2,153,053 - - -
Fines and forfeitures 751,654 - - -
Investment income, rents, and concessions 5,439,721 - 76,406 - Intergovernmental revenues 12,052,913 8,887,646 - 2,000,000 Current service charges 9,963,139 - - -
Other 2,048,655 - 239,092 -
Total revenues 8,887,646 77,394,162 315,498 2,000,000
EXPENDITURES:

Current:

General government 13,098,264 14,526 - -
Public safety 10,611,028 8,567,078 - -
Transportation 3,604,890 - - -
Community development 7,693,067 33,750 3,157,178 -
Health and sanitation 6,722,554 - - -
Culture and leisure 15,104,544 - - -
Capital outlay:

General government 832,670 - - -
Public safety 128,409 2,697 - -
Transportation 558,503 - - 688,576
Community development 117,210 - - -
Culture and leisure 4,027,196 - - 75
Debt service:

Principal retirement 271,906 - - -
Interest payment 8,458 - - -
Total expenditures 62,778,699 8,618,051 3,157,178 688,651

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 14,615,463 269,595 (2,841,680) 1,311,349 OTHER FINANCING SOURCES (USES):

Transfers in 4,506,716 - - -
Transfers out (1,647,169) (269,595) (200,000) -
Proceeds from sale of properties 85,029 - - -
Total other financing sources (uses) 2,944,576 (269,595) (200,000) - NET CHANGE IN FUND BALANCES 17,560,039 - (3,041,680) 1,311,349 FUND BALANCES:

Beginning of year 81,412,647 - 12,280,404 1,836,455
End of year $ - 98,972,686 $ 9,238,724 $ 3,147,804 $
(Continued)
Major Funds
City of Lakewood
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the Year Ended June 30, 2024
See accompanying Notes to the Basic Financial Statements. 30 Nonmajor Total
Governmental Governmental
Funds Funds
REVENUES:

Taxes $ 3,961,664 $ 48,946,691
Licenses and permits - 2,153,053
Fines and forfeitures - 751,654
Investment income, rents, and concessions 1,058,926 6,575,053 Intergovernmental revenues 10,044,041 32,984,600
Current service charges - 9,963,139
Other 51,991 2,339,738
Total revenues 15,116,622 103,713,928
EXPENDITURES:

Current:

General government 40,509 13,153,299
Public safety 316,370 19,494,476
Transportation 5,184,032 8,788,922
Community development 383,879 11,267,874
Health and sanitation 124,707 6,847,261
Culture and leisure 181,983 15,286,527
Capital outlay:

General government 383,967 1,216,637
Public safety - 131,106
Transportation 1,209,105 2,456,184
Community development 288,349 405,559
Culture and leisure 65,155 4,092,426
Debt service:

Principal retirement - 271,906
Interest payment - 8,458
Total expenditures 8,178,056 83,420,635

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 6,938,566 20,293,293
OTHER FINANCING SOURCES (USES):

Transfers in - 4,506,716
Transfers out (2,267,690) (4,384,454)
Proceeds from sale of properties - 85,029
Total other financing sources (uses) (2,267,690) 207,291 NET CHANGE IN FUND BALANCES 4,670,876 20,500,584
FUND BALANCES:

Beginning of year 26,338,221 121,867,727
End of year $ 142,368,311 31,009,097 $
(Concluded)
Governmental Funds
For the Year Ended June 30, 2024
City of Lakewood
Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) See accompanying Notes to the Basic Financial Statements. 31 NET CHANGE IN FUND BALANCEs - total governmental funds: $ 20,500,584 Amounts reported for governmental activities in the Statement of Activities are different because:

Capital outlay expenditures, $16,104 reported in Internal Service Funds 8,301,912 $ Non-capital expenditures reclassified to functional expense (22,451) Depreciation and amortization expense, net of $28,741 reported in Internal Service Funds (4,785,539) 3,493,922 (406,132)
Lease, subscription liability, loan and ADA financing payment 271,906 Change in interest payable 1,070
Change in compensated absences (121,831)
(1,815,671)
1,525,652
112,288
26,977
(734,065)
Change in net position of governmental activities $ 22,854,700 Absorbing the consolidation of the internal service fund activities due to closing of the internal service fund 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 $74,065 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, 2024
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 $4,463,140
Pension expense of PARS Plan, net of pension contribution made during the measurement period in the amount of 1,394,148
OPEB expense, net of OPEB contribution made during the measurement period in the amount of $600,952
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 $ - 15,950,451 $
Accounts receivable - 1,434,617
Accrued revenue - 1,101,682
Inventories - 92,081
Leases receivable - 45,785
Total current assets - 18,624,616
Noncurrent assets:

Restricted cash and investments:

Customer deposits - 58,285
Leases receivable 898,066 -
Net OPEB Asset 34,229 -
Capital assets:

Capital assets, not being depreciated:

Land - 100,000
Water rights - 1,834,586
Construction in progress - 144,937
Capital assets, being depreciated:

Source of supply - 11,647,678
Pumping plant - 5,710,419
Water treatment - 4,852,172
Transmission/distribution 34,548,038 -
General plant - 5,884,600
Equipment - 15,961,622
Less: accumulated depreciation (43,233,466) -
Intangible asset, net - 240,674
Total capital assets - 37,691,260
Total noncurrent assets - 38,681,840
Total assets - 57,306,456
DEFERRED OUTFLOWS OF RESOURCES:

Deferred outflows of resources related to pensions 1,403,094 - Deferred outflows of resources related to OPEB 137,365 - Total deferred outflows of resources 1,540,459 -
(Continued)
City of Lakewood
Statement of Net Position
Proprietary Funds
June 30, 2024
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 $ - 2,252,248 $
Accrued liabilities - 71,665
Accrued interest payable 8,206 -
Unearned revenues 258,374 -
Compensated absences, due within one year 110,371 -
Lease payable, due within one year 618,103 -
Subscription liabilities, due in one year 169,170 -
Total current liabilities 3,488,137 -
Noncurrent liabilities:

Customer deposit 58,285 -
Compensated absences, due in more than one year 110,371 - Lease payable, due in more than one year 4,888,614 -
Subscription liabilities, due in more than one year 88,263 - Aggregate net pension liability 4,199,724 -
Total noncurrent liabilities 9,345,257 -
Total liabilities 12,833,394 -

DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources related to pensions 170,526 - Deferred inflows of resources related to OPEB 208,259 - Deferred inflows of resources related to leases 925,065 - Total deferred inflows of resources 1,303,850 -

NET POSITION
Net investment in capital assets 31,927,110 -
Unrestricted 12,782,561 -
Total net position $ - 44,709,671 $
(Concluded)
Statement of Net Position (Continued)
Proprietary Funds
June 30, 2024
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 $ - 12,109,402 $
Reclaimed water sales - 473,008
Fire protection - 192,998
Service initiation and restoration charges 64,584 -
Billing to departments 118,637 -
Other revenues - 152,436
Total operating revenues 118,637 12,992,428
OPERATING EXPENSES:

Operations:

Supply, transmission and distribution 6,683,523 -
Customer service 226,824 -
Administration 1,559,744 -
Operating expenses 1,595,450 53,763
Depreciation and amortization 2,133,809 28,741
Total operating expenses 1,624,191 10,657,663
OPERATING INCOME (LOSS) (1,505,554) 2,334,765
NONOPERATING REVENUES (EXPENSES):

Investment income - 426,194
Interest expense - (184,494)
Capital contributions - (76,158)
Total nonoperating revenues (expenses) 241,700 (76,158) INCOME (LOSS) BEFORE TRANSFERS 2,576,465 (1,581,712)
TRANSFERS:

Transfers in 214,972 1,458,466
Transfers out (1,795,700) -
Total transfers (1,580,728) 1,458,466
CHANGES IN NET POSITION 995,737 (123,246)
NET POSITION:

Beginning of the year 43,713,934 123,246
End of the year $ - 44,709,671 $
Changes in net position - Business-type activities $ 995,737 Adjustment to reflect the consolidation of the internal service fund activities related to the Water Enterprise Fund (74,065) Absorbing the consolidation of the internal service fund activities due to closing of the internal service fund 734,065
Changes in net position of business-type activities $ 1,655,737 City of Lakewood
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
For the Year Ended June 30, 2024
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 $ - 13,412,063 $
Receipts from interfund services provided - 118,637
Payments to suppliers (1,577,103) (7,394,924)
Payments to employees - (3,126,697)
Net cash provided by (used in) operating activities (1,458,466) 2,890,442

CASH FLOWS FROM NONCAPITAL AND
RELATED FINANCING ACTIVITIES:

Transfers in/(out) 1,458,466 (1,580,728)
Net cash (used in) noncapital financing activities 1,458,466 (1,580,728)

CASH FLOWS FROM CAPITAL FINANCING
ACTIVITIES:

Acquisition of capital assets - (5,229,283)
Principal paid on leases and subscription liabilities (756,969) - Interest paid on revenue bonds - (188,925)
Net cash (used in) capital and related financing activities - (6,175,177) CASH FLOWS FROM INVESTING ACTIVITIES:

Investment income - 426,194
Net cash provided by investing activities - 426,194
Net increase in cash and cash equivalents - (4,439,269) CASH AND CASH EQUIVALENTS:

Beginning of year - 20,448,005
End of year $ - 16,008,736 $
CASH AND CASH EQUIVALENTS:

Cash and investments $ - 15,950,451 $
Customer deposit - 58,285
Total cash and cash equivalents 16,008,736 $ - $
(Continued)
City of Lakewood
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2024
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) $ (1,505,554) 2,334,765 $
Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities:

Depreciation 28,741 2,133,809
Changes in assets, deferred outflows of resources, liabilities, and deferred inflows of resources:
(Increase) decrease in accounts receivable 171,246 -
(Increase) decrease in accrued revenue (1,640) -
(Increase) decrease in prepaids - 58,056
(Increase) decrease in inventories (21,941) 8,061
(Increase) decrease in lease receivable 45,104 -
(Increase) decrease in deferred outflows of resources related to pensions 120,027 - Increase (decrease) in accounts payable (2,049,395) (31,987) Increase (decrease) in accrued liabilities 17,714 (15,783) Increase (decrease) in customer deposits 18,080 -
Increase (decrease) in unearned revenues 237,992 -
Increase (decrease) in compensated absences 34,738 -
Increase (decrease) in net pension liability (15,741) - Increase (decrease) in net OPEB liability (48,366) -
Increase (decrease) in deferred inflows of resources related to pensions (72,064) - Increase (decrease) in deferred inflows of resources related to OPEB 37,261 - Increase (decrease) in deferred inflows of resources related to leases (51,147) - Total adjustments 555,677 47,088
Net cash provided by (used in) operating activities $ (1,458,466) 2,890,442 $ NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES:

Transfer capital assets to the governmental activities to close the fund - $ (76,158) $ (Concluded)
Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended June 30, 2024
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 $ 1,010,029
Total assets 1,010,029
LIABILITIES:

Due to the City of Lakewood 15,731,858
Total liabilities 15,731,858
NET POSITION (DEFICIT):

Held in trust (14,721,829)
Total net position (deficit) $ (14,721,829)
City of Lakewood
Statement of Fiduciary Net Position
Fiduciary Fund
June 30, 2024
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 $ 931,932
Investment loss (382,030)
Total additions 549,902
DEDUCTIONS:

Overhead 250,000
Total deductions 250,000
CHANGE IN NET POSITION 299,902
NET POSITION (DEFICIT):

Beginning of year (15,021,731)
End of year $ (14,721,829)
City of Lakewood
Statement of Changes in Fiduciary Net Position
For the Year Ended June 30, 2024
Fiduciary Fund
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, 2024
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 ........................................................................................... 52 D. Restricted Cash in Escrow................................................................................................................... 53 E. Fair Value Measurement ..................................................................................................................... 53 F. Receivables ......................................................................................................................................... 53 G. Inventories ........................................................................................................................................... 53 H. Prepaid Items ....................................................................................................................................... 54 I. Interfund Transactions......................................................................................................................... 54 J. Land Held for Resale .......................................................................................................................... 54 K. Leases .................................................................................................................................................. 54 L. Capital Assets ...................................................................................................................................... 55 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 .................................................................................................................................. 58 R. Claims and Judgments ......................................................................................................................... 59 S. Deferred Outflows of Resources and Deferred Inflows of Resources ................................................ 59 T. Net Position ......................................................................................................................................... 59 U. Fund Balances ..................................................................................................................................... 59 V. Property Taxes .................................................................................................................................... 60 W. Use of Estimates .................................................................................................................................. 61 X. Implementation of New GASB Pronouncements ............................................................................... 61 Note 3 – Cash and Investments ............................................................................................................................ 61 A. Demand Deposits ................................................................................................................................ 62 B. Investments Authorized by the California Government Code and the City’s Investment Policy .................................................................................................... 62 C. Investments Authorized by Debt Agreement ...................................................................................... 63 D. Risk Disclosures .................................................................................................................................. 63 E. Fair Value Measurement Disclosure ................................................................................................... 65 F. Investment in Local Agency Investment Fund (LAIF) ....................................................................... 65 G. Investment in California Asset Management Program ....................................................................... 66 Note 4 – Notes Receivable .................................................................................................................................... 66 Note 5 – Leases Receivable and Lease-Related Deferred Inflows of Resources .............................................. 66 A. Governmental Activities ..................................................................................................................... 67 B. Business-Type Activities..................................................................................................................... 67 Note 6 – Interfund Transactions .......................................................................................................................... 69 A. Due From and To Other Funds ........................................................................................................... 69 B. Transfers In and Out ............................................................................................................................ 69 City of Lakewood
Index to the Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024
48 Note 7 – Receivable from Successor Agency ...................................................................................................... 69 Note 8 – Capital Assets ......................................................................................................................................... 71 A. Governmental Activities ..................................................................................................................... 71 B. Business-Type Activities..................................................................................................................... 72 Note 9 – Long-Term Liabilities ............................................................................................................................ 73 A. Governmental Activities ..................................................................................................................... 73 B. Business-Type Activities..................................................................................................................... 74 Note 10 – Defined Contribution Plan .................................................................................................................. 75 Note 11 – Defined Benefit Pension Plan .............................................................................................................. 76 A. CalPERS Plan ...................................................................................................................................... 77 B. Retirement Enhancement Plan ............................................................................................................ 82 Note 12 – Other Postemployment Benefits (“OPEB”) ....................................................................................... 86 Note 13 – Deferred Compensation Plan .............................................................................................................. 91 Note 14 – Liabilities, Property, and Workers’ Compensation Protection ....................................................... 91 A. Description of Self-Insurance Pool Pursuant to Joint Powers Agreement .......................................... 91 B. Primary Self-Insurance Programs of the Authority ............................................................................. 91 C. Purchased Insurance ............................................................................................................................ 92 D. Adequacy of Protection ....................................................................................................................... 93 Note 15 – Commitments and Contingencies ....................................................................................................... 93 A. Lawsuits .............................................................................................................................................. 93 B. Agreement for Allocation of Tax Increment Revenue ........................................................................ 93 C. Construction Commitments................................................................................................................. 94 D. BKK Landfill ...................................................................................................................................... 94 Note 16 – Individual Fund Disclosures ............................................................................................................... 94 Note 17 – Net Investment in Capital Assets ........................................................................................................ 95 Note 18 – Agreement with Paramount Petroleum ............................................................................................. 95 City of Lakewood
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
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.

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.

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

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, 2024
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:

Ø Charges for services
Ø Operating grants and contributions
Ø 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 business-type activities have not been eliminated. The following interfund activities have been eliminated:

Ø Due to/from other funds
Ø Transfers in/out
City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
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-and moderateincome 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, 2024
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. These two funds were closed to the General Fund at June 30, 2024.

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 fund represents a private purpose trust fund. The private purpose trust fund is 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.

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 $720,463 for the fiscal year ended June 30, 2024.

City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
53 Note 2 – Summary of Significant Accounting Policies (Continued) C. Cash, Cash Equivalents, and Investments (Continued)
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:

Ø Interest Rate Risk
Ø Credit Risk
- Overall
- Custodial Credit Risk
- Concentration of Credit Risk
Ø 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:

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

Ø 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.

Ø 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.

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 and the consumption method is used to account for inventory for the governmental activities. Inventories consist primarily of water pipe, valves, and fittings for the Water Enterprise Fund and are valued at cost on a weighted average basis.

City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
54 Note 2 – Summary of Significant Accounting Policies (Continued) 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. The land held for resale was sold during June 30, 2024; therefore, there was no land held for resale reported on the financial statements at June 30, 2024.

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.

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.

City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
55 Note 2 – Summary of Significant Accounting Policies (Continued) K. Leases (Continued)
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 or 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.

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.

City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
56 Note 2 – Summary of Significant Accounting Policies (Continued) L. Capital Assets (Continued)
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 right‐to‐use 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.

Ø Preliminary Project Stage: Outlays are expensed as incurred.

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

Ø 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.

City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
57 Note 2 – Summary of Significant Accounting Policies (Continued) M. Subscription-Based Information Technology Arrangements (SBITAs) (Continued) 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.

Ø 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.

Ø 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.

The following timeframes are used for pension reporting:

CalPERS
Valuation Date June 30, 2022
Measurement Date June 30, 2023
Measurement Period July 1, 2022 to June 30, 2023
PARS
Valuation Date June 30, 2023
Measurement Date June 30, 2024
Measurement Period July 1, 2023 to June 30, 2024
City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
58 Note 2 – Summary of Significant Accounting Policies (Continued) O. Pensions (Continued)
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, 2023
Measurement Date June 30, 2024
Measurement Period July 1, 2023 to June 30, 2024
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.

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.

City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
59 Note 2 – Summary of Significant Accounting Policies (Continued) 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 in 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.

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.

City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
60 Note 2 – Summary of Significant Accounting Policies (Continued) U. Fund Balances (Continued)
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.

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.

City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
61 Note 2 – Summary of Significant Accounting Policies (Continued) V. Property Taxes (Continued)
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. 100 – In June 2022, the GASB issued Statement No. 100, Accounting Changes and Error Corrections—An Amendment of GASB Statement No. 62. The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. The requirements of this Statement are effective for accounting changes and error corrections made in fiscal years beginning after June 15, 2023, and all reporting periods thereafter. There were no significant impacts on the City’s financial statements.

Note 3 – Cash and Investments
At June 30, 2024, 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 140,319,278 $ 1,010,029 $ 141,329,307 $ Restricted assets:

Cash in escrow 599,658 - 599,658
Cash held by City 58,285 - 58,285
Total cash and investments $ 1,010,029 140,977,221 $ 141,987,250 $ At June 30, 2024, cash and investments consisted of the following:

Deposits with financial institution $ 8,104,837
Petty cash 2,700
Investments 133,879,713
Total cash and investments $ 141,987,250
City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
62 Note 3 – Cash and Investments (Continued)
A. Demand Deposits
The carrying amount of the City’s cash deposits were $8,104,837 at June 30, 2024. Bank balances before reconciling items were $9,210,061 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
Authorized 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, 2024
63 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.

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 $ 3,814,702 $ - $ - $ - $ 3,814,702 - $ Money Market Fund 13,087 - - - - 13,087
United States treasury notes 243,318 5,085,100 3,649,293 5,284,493 1,579,888 15,842,092 United States government-sponsored
agency securities 138,713 562,000 3,083,359 1,039,887 2,112,635 6,936,594 Municip al bonds 265,124 254,339 191,638 89,273 800,374 - Supra-national agency notes 600,876 - - - 600,876 -
CAMP cash reserve p ortfolio 90,581,559 - - - 90,581,559 - Corporate medium-term notes 584,733 1,113,035 4,779,238 3,471,665 5,341,758 15,290,429 Total $ 96,242,112 $ 7,014,474 $ 11,703,528 $ 9,885,318 $ 9,034,281 $ 133,879,713 Remaining Maturity (In Months)
City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
64 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, 2024 for each investment type:

Fair Value M inimum
as of Legal Not
Investment Type June 30, 2024 Rating AAA AA A Rated
Local Agency Investment Fund 3,814,702 $ N/A - $ - $ - $ 3,814,702 $ M oney M arket Fund 13,087 N/A - - - 13,087
United States treasury notes 15,842,092 N/A 15,842,092 - - - United States government-sponsored
agency securities 6,936,594 N/A - 6,936,594 - -
M unicipal bonds 800,374 AA 137,197 663,177 - -
Supra-national agency notes 600,876 AA - 600,876 - -
CAM P cash reserve portfolio 90,581,559 A 90,581,559 - - - Corporate medium-term notes 15,290,429 A or A-* 4,247,601 1,116,094 9,926,734 - Total $ 133,879,713 $ 110,808,449 $ 9,316,741 $ 9,926,734 $ 3,827,789 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, 2024.

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, 2024
65 Note 3 – Cash and Investments (Continued)
E. Fair Value Measurement Disclosure
At June 30, 2024, 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, 2024:

Quoted Prices
in Active Markets Significant
for Identical Other Observable
Investment Type Assets (Level 1) Inputs (Level 2) Uncategorized Total Local Agency Investment Fund - $ - $ 3,814,702 $ 3,814,702 $ Money Market Fund - - 13,087 13,087
United States treasury notes 15,842,092 - - 15,842,092
United States government-sponsored
agency securities - 6,936,594 (1) 6,936,594 -
Municipal bonds - 800,374 (1) 800,374 -
Supra-national agency notes - 600,876 (1) 600,876 -
CAMP cash reserve portfolio - - 90,581,559 90,581,559
Corporate medium-term notes - 15,290,429 (1) 15,290,429 - Total $ 23,628,273 15,842,092 $ 94,409,348 $ 133,879,713 $ (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, 2024 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, 2024, the City had $3,814,702 invested in LAIF, which had invested 3.00% 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, 2024
66 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, 2024, the City had $90,581,589 invested in CAMP.

Note 4 – Notes Receivable
At June 30, 2024, notes receivable consisted of the following:

Governmental
Activities
Home Improvement Loan Program 2,525,436 $
Total notes receivable $ 2,525,436
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 $2,045,746 at June 30, 2024.

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, 2024 was $479,690.

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%.

City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
67 Note 5 – Leases Receivable and Lease-Related Deferred Inflows of Resources (Continued) For the fiscal year ended June 30, 2024, the City recognized $409,626 in lease revenue and $29,972 in interest revenue, and the outstanding net present value of the lease receivable amount is $2,086,758.

A. Governmental Activities
A summary of changes in lease receivable for the governmental activities for the year ended June 30, 2024 is as follows:

Amounts Amounts
Balance Balance due within due in more
July 1, 2023 Addition Reductions June 30, 2024 one year than one year $ - 1,494,765 $ (351,858) $ 1,142,907 $ 205,739 $ 937,168 $ At June 30, 2024, the required payments for these leases, including interest, are:

NPV leases Total lease
receivables Interest payments
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 134,505 3,921 138,426
2030-2034 319,124 3,871 322,995
Total 1,142,907 $ $ 40,997 $ 1,183,904
At June 30, 2024, the amounts reported as deferred inflows of resources related to leases will be recognized as lease revenue as follows:

Year Ending
June 30, Amount
2025 208,506 $
2026 186,438
2027 131,247
2028 131,247
2029 131,247
2030-2034 306,245
Total 1,094,930 $
B. Business-Type Activities
A summary of changes in lease receivable for the business-type activities for the year ended June 30, 2024 is as follows:

Amounts Amounts
Balance Balance due within due in more
July 1, 2023 Addition Reductions June 30, 2024 one year than one year $ - 988,955 $ (45,104) $ 943,851 $ 45,785 $ 898,066 $
City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
68 Note 5 – Leases Receivable and Lease-Related Deferred Inflows of Resources (Continued) B. Business-Type Activities (Continued)
At June 30, 2024, the required payments for these leases, including interest, are:

NPV leases Total lease
receivables Interest payments
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 48,615 11,014 59,629
2030 - 2034 213,256 44,345 257,601
2035 - 2039 104,805 32,778 137,583
2040 - 2044 92,547 25,869 118,416
2045 - 2049 99,750 18,666 118,416
2050 - 2054 107,514 10,902 118,416
2055 - 2058 90,032 2,727 92,759
Total $ 943,851 $ 197,485 $ 1,141,336
At June 30, 2024, the amounts reported as deferred inflows of resources related to leases will be recognized as lease revenue as follows:

Year Ending
June 30, Amount
2025 51,147 $
2026 51,147
2027 51,147
2028 51,147
2029 51,147
2030 - 2034 217,786
2035 - 2039 107,976
2040 - 2044 91,199
2045 - 2049 91,199
2050 - 2054 91,199
2055 - 2059 69,971
Total 925,065 $
City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
69 Note 6 – Interfund Transactions
A. Due From and To Other Funds
At June 30, 2024, the City has the following due from and to other funds:

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

General Fund $ 585,844
These interfund balances represent routine short-term cash flow assistance.

B. Transfers In and Out
During the year ended June 30, 2024, the City had the following transfers in and transfers out:

Governmental
Funds
Internal Service
Transfers Out General Fund Water Fund Fund Total
Governmental Funds:

General Fund $ - $ 188,703 $ 1,458,466 $ 1,647,169
American Rescue Plan Act Special Revenue Fund 243,326 26,269 - 269,595 Lakewood Capital Improvements
Cap ital Projects Fund 200,000 - - 200,000
Nonmajor Special Revenue Funds 2,267,690 - - 2,267,690
Enterprise Fund:

Water 1,795,700 - - 1,795,700
Total $ 4,506,716 $ 214,972 $ 1,458,466 $ 6,180,154
Transfers In
Funds
Proprietary
Transfers provided funding for capital projects, capital acquisitions, and debt service.

Note 7 – Receivable from Successor Agency
At June 30, 2024, the receivables from Successor Agency are as follows:

Housing Admin
and Program
Capital
General Fund Projects Fund Total
Inter-Agency Loan 11,096,154 $ 2,774,040 $ 13,870,194 $ 10-Year Interfund Loan - 90,491 90,491
5-Year Loan 685,863 - 685,863
Housing Set-Aside Fund 1,085,310 - 1,085,310
$ 11,096,154 $ 4,635,704 $ 15,731,858
City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
70 Note 7 – Receivable from Successor Agency (Continued) 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.

At June 30, 2024, the total principal and interest due to the City General Fund and Housing Admin & Program Capital Projects Fund were in the amount of $11,096,154 and $2,774,040, 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, 2024 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, 2024 was $685,863. 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, 2024
71 Note 8 – Capital Assets
A. Governmental Activities
A summary of changes in capital assets of the governmental activities for the year ended June 30, 2024 is as follows:

Balance Balance
July 1, 2023 Additions Deletions Transfer June 30, 2024 Capital assets, not being depreciated:

Land $ 17,041,023 $ - $ - $ 17,041,023 - $
Construction in progress 43,187,031 4,030,716 (2,966,135) - 44,251,612 Total capital assets, not being depreciated 60,228,054 4,030,716 (2,966,135) - 61,292,635 Capital assets, being depreciated:

Structures/buildings, and improvements 51,463,631 1,673,232 2,966,135 - 56,102,998 Equipment 10,708,525 2,251,017 (586,815) 12,372,727 -
Infrastructure/street 161,853,876 324,496 - 162,178,372 - Total capital assets, being depreciated 224,026,032 4,248,745 (586,815) 2,966,135 230,654,097 Less accumulated depreciation for:

Structures/buildings, and improvements (30,289,273) (1,110,280) - (31,399,553) - Equipment (8,521,799) (647,278) 586,815 (8,582,262) -
Infrastructure/street (122,897,867) (2,960,331) - (125,858,198) - Total accumulated depreciation (161,708,939) (4,717,889) 586,815 (165,840,013) - Total capital assets, being depreciated, net 62,317,093 (469,144) 2,966,135 - 64,814,084 Intangible assets, being amortized:

Lease assets 205,182 - - 205,182 -
Subscription asset s 225,275 - - 225,275 -
Total lease assets 430,457 - - 430,457 -
Less accumulated amortization for:

Lease assets (86,113) (44,967) - (131,080) -
Subscript ion assets (64,223) (51,424) - (115,647) -
Total accumulated amorti zation (150,336) (96,391) - (246,727) - Total intangibl e assets, being amortized, net 280,121 (96,391) - 183,730 - Governmental activities capital assets, net $ 122,825,268 $ 3,465,181 $ - $ 126,290,449 - $ Depreciation and amortization expenses were charged to City functions/programs as follows:

General government $ 361,255
Public safety 67,649
Transportation 236,516
Community development 27,797
Culture and leisure 1,035,600
Unallocated depreciation for infrastructure 2,960,331
Internal service funds depreciation charged to programs 28,741 Lease assets amortization 44,967
Subscription assets amortization 51,424
Total depreciation/amortizationexpense - governmental activities $ 4,814,280 City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
72 Note 8 – 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, 2024 is as follows:

Balance Balance
July 1, 2023 Additions Deletions Transfer June 30, 2024 Capi tal assets, not being depreciated:

Land $ 100,000 $ - $ - $ 100,000 - $
Water rights 1,834,586 - - 1,834,586 -
Construction in p rogress 4,749,839 101,113 (4,706,015) - 144,937 Total capital assets, not be ing depreciated 6,684,425 101,113 (4,706,015) - 2,079,523 Capital assets, being depreciated:

Source of supply 6,878,096 432,092 4,337,490 - 11,647,678 Pumping plant 996,284 4,345,610 368,525 - 5,710,419
Water treat ment 4,852,172 - - 4,852,172 -
Transmission/distribution 34,548,038 - - 34,548,038 -
General plant and equipment 21,540,035 306,187 - 21,846,222 - Total capital assets, being depreciated 68,814,625 5,083,889 4,706,015 - 78,604,529 Less accumulated depreciation for:

Source of supp ly (3,995,013) (198,550) - (4,193,563) - Pumping plant (688,125) (93,187) - (781,312) -
Water treat ment (4,184,858) (228,571) - (4,413,429) -
Transmission/distribution (23,494,413) (775,631) - (24,270,044) - General plant and equipment (8,897,696) (677,422) - (9,575,118) - Total accumulated depre ciation (41,260,105) (1,973,361) - (43,233,466) - Total capital assets, being depreciated, net 27,554,520 3,110,528 4,706,015 - 35,371,063 Intangibl e assets, bein g amortized:

Subscription assets 561,570 - - 561,570 -
Total lease assets 561,570 - - 561,570 -
Less accumulated amortization for:

Subscription assets (160,448) (160,448) - (320,896) -
Total accumulated amorti zation (160,448) (160,448) - (320,896) - Total in tangi ble assets, being amortized, net 401,122 (160,448) - 240,674 - Business-type activities capital assets, net $ 34,640,067 $ 3,051,193 $ - $ 37,691,260 - $

Depreciation and amortization expenses was charged to the Water Enterprise Fund in the amount of $2,133,809 for the year ended June 30, 2024.

City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
73 Note 9 – Long-Term Liabilities
A. Governmental Activities
A summary of changes in long-term liabilities for governmental activities for the year ended June 30, 2024 is as follows:

Balance Balance Due within Due in More
July 1, 2023 Additions Deletions June 30, 2024 One Year Than One Year Governmental Activities:

Direct Borrowing:

ADA financing program $ 154,123 $ (154,123) - $ $ - $ - $ - Lease payable 110,343 (49,868) - 60,475 51,890 8,585
Subscription liabilities 159,252 (67,915) - 91,337 73,260 18,077 Compensated absences 1,894,250 874,593 (752,762) 2,016,081 947,125 1,068,956 Total governmental activities $ 2,317,968 $ 874,593 $ (1,024,668) $ 2,167,893 $ 1,072,275 $ 1,095,618 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 loan was fully paid off during the year ended June 30, 2024.

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, 2024, the outstanding balance of the leases is $60,475.

Principal and interest payments to maturity at June 30, 2024 are as follows:

Year Ending
June 30, Principal Interest Total
2025 $ 595 51,890 $ 52,485 $
2026 8,585 81 8,666
$ 60,475 $ 676 $ 61,151
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%.

City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
74 Note 9 – Long-Term Liabilities (Continued)
A. Governmental Activities (Continued)
Subscription Liabilities (Continued)
The future subscription payments are as follows:

Year Ending
June 30, Principal Interest Total
2025 $ 197 73,260 $ 73,457 $
2026 18,077 129 18,206
$ 91,337 $ 326 $ 91,663
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, 2024 is as follows:

Balance Balance Due within Due in More
July 01, 2023 Additions Deletions June 30, 2024 One Year T han One Year Business-type Activities:

Direct Borrowing:
2017 M aster equipment lease/
p urchase agreement $ 6,106,508 $ (599,791) - $ $ 5,506,717 $ 618,103 $ 4,888,614 Subscription liabilities 414,611 (157,178) - 257,433 169,170 88,263 Comp ensated absences 186,004 91,662 (62,321) 220,742 110,371 110,371 Total busi ness-type activities $ 6,707,123 $ 91,662 $ (819,290) $ 5,984,892 $ 897,644 $ 5,087,248 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.

City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
75 Note 9 – Long-Term Liabilities (Continued)
B. Business-Type Activities (Continued)
2017 Master Equipment Lease/Purchase Agreement (Continued) The future annual required lease payments at June 30, 2024, are as follows:

Year Ending
June 30 Principal Interest Total
2025 $ 618,103 $ 162,207 $ 780,310
2026 636,974 143,336 780,310
2027 656,420 123,890 780,310
2028 676,460 103,850 780,310
2029 697,112 83,198 780,310
2030-2032 2,221,648 119,279 2,340,927
$ 5,506,717 $ 735,760 $ 6,242,477
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
2025 $ 4,432 169,170 $ 173,602 $
2026 88,263 631 88,894
$ 257,433 $ 5,063 $ 262,496
Note 10 – 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 69 employees covered by the plan for the year ended June 30, 2024. 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, 2024, there were 69 employees covered by the plan and the employer contributions totaled $9,564.

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, 2024, there were 185 employees covered by the plan and the employer contributions totaled $408,775.

City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
76 Note 11 – 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, 2024 are as follows:

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

Pension contributions after measurement date
CalPERS $ 4,463,140 $ 495,905 $ 4,959,045
Change in assumptions:

CalPERS 1,835,540 203,949 2,039,489
PARS 125,140 13,905 139,045
Total change in assumptions 1,960,680 217,854 2,178,534 Difference between expected and actual experience
CalPERS 992,294 110,255 1,102,549
Difference in projected and actual earnings on
pension investments:

CalPERS 5,211,715 579,080 5,790,795
Total deferred outflows of resources $ 12,627,829 $ 1,403,094 $ 14,030,923 Net pension liabilities:

CalPERS $ 36,781,638 $ 4,086,849 $ 40,868,487
PARS 1,015,874 112,875 1,128,749
Total net pension liabilities $ 37,797,512 $ 4,199,724 $ 41,997,236 Deferred inflows of resources:

Difference between expected and actual experience
CalPERS $ 659,704 $ 73,301 $ 733,005
PARS 645,377 71,708 717,085
Total difference between expected
and actual experience 1,305,081 145,009 1,450,090
Difference in projected and actual earnings on
pension investments:

PARS 229,657 25,517 255,174
Total deferred inflows of resources $ 1,534,738 $ 170,526 $ 1,705,264 Pension Expense:

CalPERS $ 6,278,811 $ 697,645 $ 6,976,456
PARS (131,504) (14,612) (146,116)
Total pension expense (credit) $ 6,147,307 $ 683,033 $ 6,830,340 City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
77 Note 11 – Defined Benefit Pension Plan (Continued)
A. CalPERS Plan
General Information about the Pension Plan
Plan Description
The City contributes to the California Public Employees’ Retirement System (“CalPERS”), an agent multipleemployer 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.

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.

City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
78 Note 11 – Defined Benefit Pension Plan (Continued)
A. CalPERS Plan (Continued)
General Information about the Pension Plan (Continued)
Employees Covered by Benefit Terms
At June 30, 2022, the valuation date, the following employees were covered by the benefit terms:

Active employees 278
Transferred and terminated employees 411
Retired employees and beneficiaries 292
Total 981
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, 2024, the classic active employee contribution rates was 7% of annual pay, the PEPRA active employee contribution rate was

7.75% of annual pay, and the required employer contribution rates were 9.81% of the annual payroll.

Net Pension Liability
Actuarial Methods and Assumptions Used to Determine Total Pension Liability The June 30, 2022 valuation was rolled forward to determine the June 30, 2023 total pension liability, based on the following actuarial methods and assumptions:

Actuarial Cost Method
Actuarial Assumptions:

Discount Rate
Inflation
Salary Increases
Mortality Rate Table1
Post Retirement Benefit Increase
Derived using CalPERS’ 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 and Review of Actuarial Assumptions. Mortality rates incorporate full generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the 2021 experience study report from November 2021 that can be found on the CalPERS website.

City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
79 Note 11 – Defined Benefit Pension Plan (Continued)
A. CalPERS Plan (Continued)
Net Pension Liability (Continued)
Change of Assumptions
In 2023, there were no changes of 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:

Assumed Asset
Asset Class1 Allocation Real Return 1,2
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%
1 An expected inflation of 2.30% used.
2 Figures are based on the 2021 Asset Liability Management study.

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

City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
80 Note 11 – 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, 2022 (Valuation Date) $ 161,000,774 $ 122,460,736 $ 38,540,038 Changes Recognized for the Measurement Period:

Service Cost 2,934,655 - 2,934,655
Interest on the total pension liability 11,040,943 - 11,040,943 Changes of Assumptions 184,767 - 184,767
Difference between expected and actual experience 1,561,945 - 1,561,945 Contributions from the employer - 4,722,046 (4,722,046) Contributions from employees - 1,240,587 (1,240,587)
Net investment income - 7,521,280 (7,521,280)
Benefit payments, including refunds of employee
contributions (8,402,294) (8,402,294) -
Administrative expense - (90,052) 90,052
Net changes during July 1, 2022 to June 30, 2023 7,320,016 4,991,567 2,328,449 Balance at June 30, 2023 (Measurement Date) $ 168,320,790 $ 127,452,303 $ 40,868,487 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:

Discount Rate - 1% Current Discount Discount Rate + 1%
(5.90%) Rate (6.90%) (7.90%)
$ 62,557,568 $ 40,868,487 $ 22,945,919
Plan's Net Pension Liability/(Asset)
City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
81 Note 11 – Defined Benefit Pension Plan (Continued)
A. CalPERS Plan (Continued)
Changes in the Net Pension Liability (Continued)
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, 2023, the City incurred a pension expense of $6,976,456.

As of measurement date of June 30, 2023, the City has deferred outflows and deferred inflows of resources related to pensions as follows:

Deferred outflows Deferred inflows
of Resources of Resources
Contributions made after the measurement date 4,959,045 $ - $ Change in assumptions 2,039,489 -
Difference between expected and actual experience 1,102,549 (733,005) Net difference between projected and actual earnings on pension plan investments 5,790,795 -
Total $ 13,891,878 $ (733,005)
The amounts above are net of outflows and inflows recognized in the 2022-2023 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, 2023 is 3.4 years, which was obtained by dividing the total service years of 3,333 (the sum of remaining service lifetimes of the active employees) by 981 (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 $4,958,045 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, 2024 will be recognized as a reduction of the net pension liability in the year ending June 30, 2025. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in future pension expense as follows:

Deferred
Outflows/(Inflows)
Year Ending of Resources
June 30 Miscellaneous Plan
2025 2,328,997 $
2026 1,486,626
2027 4,218,973
2028 165,232
2029 -
Thereafter -
Total $ 8,199,828
City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
82 Note 11 – Defined Benefit Pension Plan (Continued)
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.

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, 2023, the valuation date, the following employees were covered by the benefit terms:

Active employees 71
Terminated employees 28
Retired employees and beneficiaries 90
Total 189
Contributions
Employees contribute 3.00% of compensation of which the City picks-up 0.13%. The employer contributed $1,549,054 during the year ended June 30, 2024.

City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
83 Note 11 – Defined Benefit Pension Plan (Continued)
B. Retirement Enhancement Plan (Continued)
Net Pension Liability
Actuarial Methods and Assumptions Used to Determine Total Pension Liability The June 30, 2022 valuation was rolled forward to determine the June 30, 2024 total pension liability, based on the following actuarial methods and assumptions:

Actuarial Cost Method
Actuarial Assumptions:

Investment Return 5.50%
Inflation 2.30%
Payroll Growth
Salary Increases
Cost of Living Adjustment
Withdrawal/Disability
Mortality
Retirement
Maximum Benefits and Salary
Form of payment
Entry Age Normal

2.80%

2.00%
Consistent with the Non-Industrial Rates used to value the CalPERS Miscellaneous Public Agency Pension Plans after June 30, 2021.

Pre-retirement: Consistent with the Non-Industrial rates used to value CalPERS Miscellaneous Public Agency Pension Plans after June 30, 2021.

Post-retirement: Consistent with the Non-Industrial rates used to value CalPERS Miscellaneous Public Agency Pension Plans after June 30, 2021.

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 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.

Consistent with the rates used to value the CalPERS Miscellaneous Public Agency Pension Plans (Entry Age 20) as of June 30, 2021.

Change of Assumptions
The inflation rate used changed from 2.5% to 2.3% from June 30, 2021 valuation to June 30, 2023 valuation.

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.

City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
84 Note 11 – Defined Benefit Pension Plan (Continued)
B. Retirement Enhancement Plan (Continued)
Net Pension Liability (Continued)
Long - Term Expected Rate of Return (Continued)
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 BAM L 3-M on Tbill 5.00% 0.94% 0.91%
US Core Fixed Income Bloomberg Barclays Aggregate 33.50% 2.52% 2.36% US Short (1-3 Yr) Bonds Bloomberg US Govt/Credit 1-3 Yr 10.00% 1.65% 1.59% US High Yield Bonds ICE BofA US High Yield 1.50% 4.43% 3.87% US Large & Mid Cap Equity Russell 1000 26.50% 5.41% 3.74% US Mid Cap Equity Russell Mid Cap 5.00% 5.98% 3.90%
US Small Cap Equity Russell 2000 7.50% 6.99% 4.41%
Foreign Developed Equity MSCI EAFE NR 6.00% 6.92% 5.12% Emerging Market Equities MSCI EM NR 3.25% 9.34% 6.21%
US REITs FTSE NAREIT Equity REIT 1.75% 6.91% 4.72%
100.00%
Assumed Inflation - Mean 2.31% 2.30%
Assumed Inflation - Standard Deviation 1.45% 1.45%
Portfolio Real Mean Return 4.22% 3.70%
Portfolio Nominal Mean Return 6.52% 6.10%
Portfolio Standard Deviation 9.63%
Long-Term Exp ected Rate of Return 5.50%
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 Posi tion Liability/(Asset)
(a) (b) (c) = (a) - (b)
Balance at June 30, 2023 23,772,045 $ 20,157,438 $ 3,614,607 $ Changes Recognized for the Measurement Period:

Service cost 338,091 - 338,091
Interest on the total pension liability 1,299,653 - 1,299,653 Effect of economic/demograp hic gains or losses (281,900) - (281,900) Effect of assumptions changes or inputs 195,433 - 195,433 Benefit payments (973,181) (973,181) -
Emp loyer contributions - 1,549,054 (1,549,054)
Member contributions - 197,304 (197,304)
Net investment income - 2,367,091 (2,367,091)
Administrative exp ense - (76,314) 76,314
Net changes during July 1, 2023 to June 30, 2024 578,096 3,063,954 (2,485,858) Balance at June 30, 2024 (Measurement Date) 24,350,141 $ 23,221,392 $ 1,128,749 $ Increase (Decrease )
City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
85 Note 11 – Defined Benefit Pension Plan (Continued)
B. Retirement Enhancement Plan (Continued)
Changes in Net Pension Liability (Continued)
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 $ 4,230,093 $ 1,128,749 $ (1,466,894) 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, 2024, the City incurred a pension credit of $146,116.

As of measurement date of June 30, 2024, the City has deferred outflows and deferred inflows of resources related to pensions as follows:

Deferred outflows Deferred inflows
of Resources of Resources
Changes of assumptions 139,045 $ - $
Difference between expected and actual experience - (717,085) Net difference between projected and actual earnings on pension plan investments - (255,174)
Total $ (972,259) 139,045 $
The amounts above are net of outflows and inflows recognized in the 2023-2024 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:

Deferred
Year Ending Outflows/(Inflows)
June 30 of Resources
2025 $ (587,407)
2026 342,894
2027 (340,796)
2028 (247,905)
2029 -
Thereafter -
Total $ (833,214)
City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
86 Note 12 – Other Postemployment Benefits (“OPEB”)
At June 30, 2024, 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 348,626 $ 34,480 $ 383,106 $
Difference between expected and actual experience 159,508 15,775 175,283 Net difference between projected and actual earnings
on OPEB plan investment 880,781 87,110 967,891
Total deferred outflows of resources $ 137,365 1,388,915 $ 1,526,280 $ Net OPEB Assets: $ (34,229) (346,092) $ (380,321) $
Deferred inflows of resources:

Difference between expected and actual experience 1,297,984 128,372 1,426,356 Net difference between projected and actual earnings
on OPEB plan investment 807,747 79,887 887,634
Total deferred inflows of resources $ 208,259 2,105,731 $ 2,313,990 $ OPEB Expense (Credit) $ 48,329 488,664 $ 536,993 $
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. The Plan is part of an agent multiple-employer plan administered by the Public Agency Retirement Service (PARS).

Benefit Provided
The City offers PEMHCA coverage to its retirees. The City makes the required statutory PEMHCA contribution ($157 and $151 per month in calendar year 2024 and 2023, 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, 2024
87 Note 12 – 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, 2023, the date of the latest actuarial valuation, membership in the plan consisted of the following:

Inactive plan members or beneficiaries currently
receiving benefit payments 94
Active plan members 164
Total 258
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 $450,005 and $210,381, respectively.

Net OPEB Asset
The City’s net OPEB asset was measured as of June 30, 2024 and the total OPEB asset used to calculate the net OPEB asset was determined by an actuarial valuation as of July 1, 2023. 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, 2024
88 Note 12 – Other Postemployment Benefits (“OPEB”) (Continued) Net OPEB Liability (Continued)
Actuarial Assumptions
The total OPEB liability in the July 1, 2023 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 2024 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
Mortality rates were based on the most recent CalPERS experience study. The actuarial assumptions used in the July 1, 2023 valuation were based on an actuarial experience study and a review of plan experience during the period July 1, 2021 to June 30, 2023.

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 target allocation and best estimates of real rates of return for each major asset class, based on published capital market assumptions, are summarized in the following table:

Assumed Asset Real Rate of
Asset Class Allocation Return
Board U.S. Equity 50.00% 5.30%
U.S. Fixed 50.00% 0.90%
City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
89 Note 12 – 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 11.87 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, 2023 $ 12,415,718 $ 11,565,062 $ 850,656 Changes Recognized for the Measurement Period:

Service cost 485,386 - 485,386
Interest on the total OPEB liability 726,032 - 726,032
Changes of benefit terms - - -
Changes of assumptions - - -
Difference between expected and actual experience (475,187) - (475,187) Contributions from the employer - 660,386 (660,386)
Contributions from employees - 1,368,573 (1,368,573)
Net investment income - - -
Benefit payments, including refunds of employee
contributions (660,386) (660,386) -
Administrative expense - (61,751) 61,751
Net Changes during July 1, 2023 to June 30, 2024 75,845 1,306,822 (1,230,977) Balance at June 30, 2024 (Measurement Date) $ 12,491,563 $ 12,871,884 $ (380,321) Increase (Decrease)
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%)
$ 1,209,995 $ (380,321) $ (1,720,922)
Plan's Net OPEB Liability/(Asset)
City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
90 Note 12 – Other Postemployment Benefits (“OPEB”) (Continued) Change in the Net OPEB Liability (Continued)
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% Decrease Trend Rates Trend Rate + 1%
(4.20% current,

3.00% ultimate)
(5.20% current,

4.00% ultimate)
(6.20 current,

5.00% ultimate)
$ (380,321) (1,763,465) $ 1,291,395 $
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, 2024, the City' recognized OPEB expense of $536,993. At June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred outflows Deferred inflows
of Resources of Resources
Changes of assumptions $ 383,106 $ -
Difference between expected and actual experience 175,283 (1,426,356) Net difference between projected and actual earnings on pension plan investments 967,891 (887,634)
Total $ 1,526,280 $ (2,313,990)
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 which is 9.4 years at the beginning of the measurement period June 30, 2024.

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
2025 $ (31,703)
2026 296,808
2027 (257,352)
2028 (281,216)
2029 (158,634)
Thereafter (355,613)
Total $ (787,710)
City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
91 Note 13 – 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.

Note 14 – Liabilities, Property, and Workers’ Compensation Protection A. Description of Self-Insurance Pool Pursuant to Joint Powers Agreement The City is a member of the California Joint Powers Insurance Authority (the “Authority”). The Authority is composed of 126 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. 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.

City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
92 Note 14 – Liabilities, Property, and Workers’ Compensation Protection (Continued) B. Primary Self-Insurance Programs of the Authority (Continued) Primary Liability Program (Continued)
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.

For 2023-24 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 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 participates in the all-risk property protection program of the Authority. This insurance protection is underwritten by several insurance companies. The City’s property is currently insured according to a schedule of covered property submitted by the City to the Authority. The City’s property currently has all-risk property insurance protection in the amount of $115,752,767. There is a $10,000 deductible per occurrence except for nonemergency vehicle insurance which has a $2,500 deductible.

Earthquake and Flood Insurance
The City purchases earthquake and flood insurance on a portion of its property. The earthquake insurance is part of the property protection insurance program of the Authority. The City’s property currently has earthquake protection in the amount of $49,523,278. There is a deductible of 5% per unit of value with a minimum deductible of $100,000.

City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
93 Note 14 – Liabilities, Property, and Workers’ Compensation Protection (Continued) C. Purchased Insurance (Continued)
Crime Insurance
The City 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, 2024 was $633,272.

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 2023-2024.

Complete financial statements for the Authority may be obtained at their administrative office located at 8081 Moody Street, La Palma, California 90623.

Note 15 – 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. 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, 2024, the Agency's outstanding deferral balance is $756,943.

City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
94 Note 15 – Commitments and Contingencies (Continued)
C. Construction Commitments
The City had outstanding construction commitments in the amount of $5,184,950 as of June 30, 2024 as follows:

Governmental Funds:

General Fund 2,452,969 $
Lakewood Capital Improvements Capital Projects Fund 258,907 Nonmajor Governmental Fund 2,102,095
Proprietary Fund:

Water Enterprise Fund 370,979
Total 5,184,950$
D. BKK Landfill
Many years ago the City was put on notice that parties who have reached settlement regarding the environmental cleanup of the BKK Landfill in West Covina, California someday would be seeking contribution toward that settlement from the City, based on waste from the City having been transported to BKK during the years that it was open. Recently, the City learned that the amount being sought from the City is in excess of $10,000,000.

While the City believes it has some exposure to liability, that amount seems extremely excessive. It is too early in the legal process to provide a realistic estimate of the amount of financial exposure. The City has agreed to participate in (non-binding) mediation to attempt to reach a settlement. Litigation against the City has not been commenced, but it is possible perhaps even probable that the parties will be unable to resolve this prior to the filing of a lawsuit. The City had some insurance coverage which might be applicable to this matter and is in contact with multiple insurers. The coverage limits were very low, but there may be an obligation to pay the City's defense costs, notwithstanding the very low coverage limits.

Note 16 – Individual Fund Disclosures
Funds with a deficit fund balance/net position at June 30, 2024, are as follows:

Governmental Funds:

Prop A Recreation Special Revenue Fund (28,762) $
CA Natural Resources Agency Grant Special Revenue Fund (539) Open Space (10,539)
Fiduciary Fund:

Successor Agency Private Purpose Trust Fund (14,721,829) $ The Governmental Funds’ deficits are primarily the result of the unavailability of certain revenues at June 30, 2024 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.

City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
95 Note 17 – Net Investment in Capital Assets
The following is the calculation of net investment in capital assets at June 30, 2024:

Governmental Business-Type
Activities Activities
Capital assets, net of accumulated depreciation/amortization 126,290,449 $ 37,691,260 $ Less: outstanding principal on capital related debts (151,812) (5,764,150) Less: retention payable (688,914) -
Less: capital assets related accounts payable (447,874) - Net investment in capital assets 125,001,849 $ 31,927,110 $ Note 18 – 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.
96 REQUIRED SUPPLEMENTARY INFORMATION
(UNAUDITED)
97 98
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Taxes $ 45,389,111 $ 45,106,500 $ 44,985,027 $ (121,473) Licenses and permits 2,160,100 2,017,000 2,153,053 136,053 Fines and forfeitures 662,100 655,100 751,654 96,554
Investment income, rents and concession 1,500,775 4,690,750 5,439,721 748,971 Intergovernmental revenues 11,914,800 11,919,800 12,052,913 133,113 Current service charges 9,485,982 9,407,700 9,963,139 555,439 Other 1,110,200 2,047,150 2,048,655 1,505
Total revenues 72,223,068 75,844,000 77,394,162 1,550,162 EXPENDITURES:

Current:

General government 12,669,677 13,963,574 13,098,264 865,310 Public safety 20,004,382 10,931,396 10,611,028 320,368
Transportation 4,199,375 4,376,455 3,604,890 771,565
Community development 8,161,273 8,324,427 7,693,067 631,360 Health and sanitation 6,870,652 6,891,978 6,722,554 169,424 Culture and leisure 15,872,235 16,074,376 15,104,544 969,832 Capital outlay:

General government 10,000 899,969 832,670 67,299
Public safety 242,000 144,750 128,409 16,341
Transportation 5,000 3,163,238 558,503 2,604,735
Community development 500 117,712 117,210 502
Culture and leisure 270,050 12,449,005 4,027,196 8,421,809 Debt service:

Principal retirement 149,235 185,235 271,906 (86,671)
Interest and fiscal charges 8,458 8,558 8,458 100
Total expenditures 68,462,837 77,530,673 62,778,699 14,751,974

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 3,760,231 (1,686,673) 14,615,463 16,302,136 OTHER FINANCING SOURCES (USES):

Transfers in 4,324,200 4,569,526 4,506,716 (62,810)
Transfers out - (1,647,169) - (1,647,169)
Procees from sale of properties 10,000 38,000 85,029 47,029 Total other financing sources (use) 4,334,200 4,607,526 2,944,576 (1,662,950) NET CHANGE IN FUND BALANCE $ 8,094,431 $ 2,920,853 17,560,039 $ 14,639,186 FUND BALANCE:

Beginning of year 81,412,647
End of year $ 98,972,686
Required Supplementary Information (Unaudited)
Budgetary Comparison Schedule - General Fund
City of Lakewood
For the Year Ended June 30, 2024
99 Original Final Variance with
Budget Budget Actual Final Budget
Intergovernmental revenues $ 8,887,646 - $ $ 8,887,646 $ - Total revenues 8,887,646 - 8,887,646 -
EXPENDITURES:

Current:

General government 91,600 14,526 14,526 -
Public safety 100,000 8,567,095 8,567,078 17
Community development - 33,750 33,750 -
Capital outlay:

Public safety - 2,700 2,697 3
Total expenditures 191,600 8,618,071 8,618,051 20

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (191,600) 269,575 269,595 20
OTHER FINANCING SOURCES (USES):

Transfers out - - (269,595) (269,595)
Total other financing sources (use) - - (269,595) (269,595) NET CHANGE IN FUND BALANCE $ 269,575 (191,600) $ - (269,575) $ 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, 2024
100

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 comparsion is presented for the JAG Special Revenue Fund and the Permanent Local Housing Allocation Program ("PLHA") Grant Special Revenue Fund since no budgets were adopted foe the funds. 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 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, 2024, 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 Schedules
For the Year Ended June 30, 2024
Budget and Budgetary Accounting
101
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) $ 114,428,322 113,819,356 $ 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 (4,981,710) (4,389,897) (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)
1 - - - - (298,545)
Net change in plan fiduciary net position (164,634) 12,596,058 (991,640) 8,188,606 5,692,534 Plan fiduciary net position - beginning 93,854,960 81,258,902 93,690,326 92,698,686 100,887,292 Plan fiduciary net position - ending (b)
2 $ 93,854,960 $ 93,690,326 $ 92,698,686 $ 100,887,292 $ 106,579,826 Plan net pension liability - ending (a) - (b) $ 20,737,996 19,964,396 $ 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
Covered Payroll
3 $ 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% 2 Includes any beginning of year adjustment.

Notes to Schedule:

For the Year Ended June 30, 2024
City of Lakewood
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios Changes of Benefit Terms: The figures above generally include any liability impact that may have resulted from voluntary benefit changes that occurred 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.

In 2022, SB 1168 increased the standard retiree lump sum death benefit from $500 to $2,000 for any death occurring on or after July 1, 2023. The impact, if any, is included in the changes of benefit terms.
1 During Fiscal Year 2017-18, as a result of Governmental Accounting Standards Board Statement (GASB) No. 75, Accounting and Financial Reporting for Postemployment Benefit Plans Other than Pensions (GASB 75), CalPERS reported its proportionate share of activity related to postemployment benefits for participation in the State of California’s agent OPEB plan. Accordingly, CalPERS recorded a one-time expense as a result of the adoption of GASB 75. Additionally, CalPERS employees participate in various State of California agent pension plans and during Fiscal Year 2017-18, CalPERS recorded a correction to previously reported financial statements to properly reflect its proportionate share of activity related to pensions in accordance with GASB Statement No. 68, Accounting and Financial Reporting for Pensions (GASB 68). 3 Includes one year’s payroll grow th using 2.80% payroll grow th assumption for fiscal years ended in 2022 and 2023; 2.75% payroll grow th assumption for fiscal years ended in 2018 through 2021; 3.00% payroll grow th assumption for fiscal years ended in 2014 through 2017.

California Public Employees' Retirement System Defined Benefit Plan Last Ten Fiscal Years
102
Measurement period 2018-19 2019-20 2020-21 2021-22 2022-23 Total pension liability
Service cost $ 2,573,466 $ 2,616,888 $ 2,546,101 $ 2,973,011 $ 2,934,655 Interest 9,686,135 10,069,685 10,347,723 10,555,722 11,040,943 Changes of benefit terms - - - 184,767 -
Changes of assumptions - - 4,758,807 - -
Differences between expected and actual experience 2,203,972 335,690 (949,532) (1,508,930) 1,561,945 Benefit payments, including
refunds of employee contributions (7,031,685) (7,473,686) (8,152,296) (8,045,870) (8,402,294) Net change in total pension liability 7,431,888 5,548,577 3,791,996 8,732,740 7,320,016 Total pension liability - beginning 135,495,573 142,927,461 148,476,038 152,268,034 161,000,774 Total pension liability - ending (a) $ 148,476,038 142,927,461 $ 152,268,034 $ 161,000,774 $ 168,320,790 $ Pension fiduciary net position
Contributions - employer 2,938,083 $ 3,476,806 $ 3,879,340 $ 4,405,183 $ 4,722,046 $ Contributions - employee 1,045,867 1,304,659 1,183,929 1,227,185 1,240,587 Net investment income 6,920,916 5,455,014 25,307,127 (10,131,229) 7,521,280 Benefit payments, including
refunds of employee contributions (7,473,686) (7,031,685) (8,152,296) (8,045,870) (8,402,294) Net plan to plan resource movement - - - - -
Administrative expense (76,058) (155,605) (112,865) (84,153) (90,052) Other Miscellaneous Income/(Expense)
1 - 248 - - -
Net change in plan fiduciary net position 2,607,188 3,797,371 22,105,235 (12,628,884) 4,991,567 Plan fiduciary net position - beginning 110,377,197 106,579,826 112,984,385 135,089,620 122,460,736 Plan fiduciary net position - ending (b)
2 $ 112,984,385 110,377,197 $ 135,089,620 $ 122,460,736 $ 127,452,303 $ Plan net pension liability - ending (a) - (b) $ 35,491,653 32,550,264 $ 17,178,414 $ 38,540,038 $ 40,868,487 $ Plan fiduciary net position as a percentage 77.23% 76.10% 88.72% 76.06% 75.72% of the total pension liability
Covered Payroll
3 $ 17,025,948 16,911,782 $ 16,695,742 $ 17,813,128 $ 17,721,348 $ Plan net pension liability
as a percentage of covered payroll 192.47% 208.46% 102.89% 216.36% 230.62% City of Lakewood
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios (Continued) For the Year Ended June 30, 2024
Last Ten Fiscal Years
California Public Employees' Retirement System Defined Benefit Plan (Continued) 103
Measurement period 2014-15 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) $ 18,071,900 14,664,922 $ 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 (115,222) 3,972,527 1,642,355 1,046,854 1,045,645 Plan fiduciary net position - beginning 12,769,050 8,796,523 12,653,828 14,296,183 15,343,037 Plan fiduciary net position - ending (b) $ 12,653,828 12,769,050 $ 14,296,183 $ 15,343,037 $ 16,388,682 $ Plan net pension liability - ending (a) - (b) $ 5,418,072 1,895,872 $ 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 $ 11,643,566 10,819,843 $ 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, 2024
This schedule is presented to illustrate the requirement to show information for 10 years. However, recalculations of prior years are not required, and if prior years are not reported in accordance with the current GASB standards, they should not be reported. 104
Measurement period 2019-20 2020-21 2021-22 2022-23 2023-24 Total pension liability
Service cost $ 410,916 $ 422,216 $ 364,553 $ 374,578 $ 338,091 Interest 1,231,314 1,275,638 1,319,474 1,263,556 1,299,653 Changes of benefit terms - - - - -
Differences between expected and actual experience (134,572) (1,804,110) - (281,900) - Changes of assumptions 55,742 - - 195,433 -
Benefit payments, including
refunds of employee contributions (746,009) (792,274) (895,425) (918,195) (973,181) Net change in total pension liability 817,391 905,580 (1,015,508) 719,939 578,096 Total pension liability - beginning 22,344,643 23,162,034 24,067,614 23,052,106 23,772,045 Total pension liability - ending (a) $ 24,067,614 23,162,034 $ 23,052,106 $ 23,772,045 $ 24,350,141 $ Pension fiduciary net position
Contributions - employer 708,372 $ 828,452 $ 925,173 $ 924,177 $ 1,549,054 $ Contributions - employee 221,930 214,864 221,400 198,880 197,304 Net investment income, net of investment expenses 575,483 3,871,904 (2,755,385) 1,439,405 2,367,091 Benefit payments, including
refunds of employee contributions (746,009) (792,274) (895,425) (918,195) (973,181) Administrative expenses (30,561) (72,882) (78,117) (72,436) (76,314) Net change in plan fiduciary net position 4,050,064 729,215 (2,582,354) 1,571,831 3,063,954 Plan fiduciary net position - beginning 17,117,897 16,388,682 21,167,961 18,585,607 20,157,438 Plan fiduciary net position - ending (b) $ 21,167,961 17,117,897 $ 18,585,607 $ 20,157,438 $ 23,221,392 $ Plan net pension liability - ending (a) - (b) $ 2,899,653 6,044,137 $ 4,466,499 $ 3,614,607 $ 1,128,749 $ Plan fiduciary net position as a percentage 73.90% 87.95% 80.62% 84.79% 95.36% of the total pension liability
Covered payroll $ 7,789,532 8,440,043 $ 7,789,532 $ $6,783,311 $7,041,948 Net pension liability as a percentage of covered payroll 71.61% 37.22% 57.34% 53.29% 16.03% City of Lakewood
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios (Continued) For the Year Ended June 30, 2024
Last Ten Fiscal Years
Public Agency Retirement System Defined Benefit Plan (Continued) 105
2014-15 2015-16 2016-17 2017-18 2018-19
Actuarially determined contribution 1,871,751 $ 2,136,551 $ 2,344,596 $ 2,573,441 $ 2,938,083 $ Contributions in relation to the
actuarially determined contribution2 (2,717,060) (1,871,751) (2,344,596) (2,573,441) (2,938,083) Contribution deficiency (excess) $ (580,509) - $ $ - $ - $ - Covered payroll3 $ 16,033,770 15,213,079 $ 16,036,475 $ 16,673,112 $ 16,911,782 $ Contributions as a percentage of covered payroll3 12.30% 16.95% 14.62% 15.43% 17.37% 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 2.80%
Investment rate of return
Retirement age
Mortality
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, 2024
California Public Employees' Retirement System Defined Benefit Plan 1 As prescribed in GASB 68, paragraph 46, the information presented in the Schedule of Plan Contributions should also be presented as of the employer’s most recent fiscal year-end. The employer is responsible for determining this information as prescribed by the standard as this data is not available to CalPERS.

Last Ten Fiscal Years1
The probabilities of retirement are based on the 2017 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. Mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 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 and 2023; 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. 2 Employers are assumed to make contributions equal to the actuarially determined contributions. How ever, some employers may choose to make additional contributions tow ards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions. 106
2019-20 2020-21 2021-22 2022-23 2023-24
Actuarially determined contribution 3,476,806 $ 3,879,340 $ 4,405,183 $ 4,722,046 $ 4,959,045 $ Contributions in relation to the
actuarially determined contribution2 (3,879,340) (3,476,806) (4,405,183) (4,722,046) (4,959,045) Contribution deficiency (excess) $ - $ - $ - $ - $ -
Covered payroll3 $ 16,695,742 17,025,948 $ 17,813,128 $ 17,721,348 $ 18,217,546 $ Contributions as a percentage of covered payroll3 20.42% 23.24% 24.73% 26.65% 27.22% Last Ten Fiscal Years
California Public Employees' Retirement System Defined Benefit Plan (Continued) City of Lakewood
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions (Continued)
For the Year Ended June 30, 2024
107
2014-15 2015-16 2016-17 2017-18 2018-19
Actuarially determined contribution 871,044 $ 874,736 $ 594,125 $ 493,923 $ 814,859 $ Contributions in relation to the
actuarially determined contribution (3,884,844) (54,800) (54,800) (568,494) (644,970) Contribution deficiency (excess) (3,013,800) $ 819,936 $ 539,325 $ (74,571) $ 169,889 $ Covered payroll 10,819,843 $ 11,643,566 $ 11,992,873 $ 9,975,323 $ 8,214,154 $ Contributions as a percentage of covered payroll 35.90% 0.47% 0.46% 5.70% 7.85% Notes to Schedule:

Valuation date: June 30, 2023
Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry Age Normal
Amortization method Level Dollar, Closed
Remaining amortization period 13 Years
Inflation 2.30%
Payroll growth 2.80%
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
City of Lakewood
Required Supplementary Information (Unaudited)
For the Year Ended June 30, 2024
Last Ten Fiscal Years
Schedule of Contributions - Pensions (Continued)
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 10.44% to 3.50% 3.6% at 30+ year of service.

Consistent with the Non-Industrial Rates used to value the CalPERS Miscellaneous Public Agency Pension Plans after June 30, 2021.

Pre-retirement: Consistent with the Non-Industrial rates used to value the CalPERS Miscellaneous Public Agency Pension Plans after June 30, 2021.

Post-retirement: Consistent with the Non-Industrial rates used to value the CalPERS Miscellaneous Public Agency Pension Plans after June 30, 2021.

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.

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.

This schedule is presented to illustrate the requirement to show information for 10 years. However, recalculations of prior years are not required, and if prior years are not reported in accordance with the current GASB standards, they should not be reported. 108
2019-20 2020-21 2021-22 2022-23 2023-24
Actuarially determined contribution 660,417 $ 816,996 $ 754,027 $ 338,440 $ 295,241 $ Contributions in relation to the
actuarially determined contribution (708,372) (828,452) (925,173) (924,177) (1,549,054) Contribution deficiency (excess) (47,955) $ (11,456) $ (171,146) $ (585,737) $ (1,253,813) $ Covered payroll 8,440,043 $ 7,789,532 $ 8,003,744 $ 6,783,311 $ 7,041,948 $ Contributions as a percentage of covered payroll 8.39% 10.64% 11.56% 13.62% 22.00% 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, 2024
Last Ten Fiscal Years
109
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 404,490 477,246 1,345,129 507,079 (551,692) Total OPEB liability - beginning 10,244,305 9,767,059 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) $ 9,881,013 9,277,688 $ 10,217,965 $ 12,473,585 $ 10,802,274 $ Plan net OPEB liability - ending (a) - (b) $ 767,782 966,617 $ 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 $ 13,157,503 12,097,503 $ 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 Asset and Related Ratios For the Year Ended June 30, 2024
Last Ten Fiscal Years
Other Postemployment Benefits Plan
110
Measurement period 2022-23 2023-24
Total OPEB liability
Service cost $ 485,386 407,536 $
Interest 726,032 721,812
Changes of benefit terms - -
Differences between expected and actual experience - (475,187) Changes of assumptions - -
Benefit payments, including refunds of employee contributions (662,941) (660,386) Net change in total OPEB liability 75,845 466,407
Total OPEB liability - beginning 12,415,718 11,949,311
Total OPEB liability - ending (a) $ 12,491,563 12,415,718 $ Plan fiduciary net position
Contributions - employer $ 660,386 662,941 $
Net investment income 1,368,573 820,756
Benefit payments, including refunds of employee contributions (662,941) (660,386) Administrative expense (61,751) (57,968)
Net change in plan fiduciary net position 1,306,822 762,788 Plan fiduciary net position - beginning 11,565,062 10,802,274 Plan fiduciary net position - ending (b) $ 12,871,884 11,565,062 $ Plan net OPEB liability - ending (a) - (b) $ (380,321) 850,656 $ Plan fiduciary net position as a percentage 93.15% 103.04% of the total OPEB liability
Covered payroll $ 14,549,535 13,194,612 $
Plan net OPEB liability as a percentage of covered payroll 6.45% -2.61% Last Ten Fiscal Years
Other Postemployment Benefits Plan (Continued)
City of Lakewood
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Other Postemployment Benefits Asset and Related Ratios (Continued) For the Year Ended June 30, 2024
111
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, 2023
Reporting period July 1, 2023 to June 30, 2024
Measurement period July 1, 2023 to June 30, 2024
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 Based on the most recent experience study for CalPERS members.

City of Lakewood
Required Supplementary Information (Unaudited)
Schedule of Contributions - Other Postemployment Benefits For the Year Ended June 30, 2024
Other Postemployment Benefits Plan
Last Ten Fiscal Years

2.50%
112
Fiscal year 2022-23 2023-24
Actuarially determined contribution $ 534,594 375,733 $ Contributions in relation to the
actuarially determined contribution (660,386) (662,941) Contribution deficiency (excess) $ (125,792) (287,208) $ Covered payroll $ 14,549,535 13,194,612 $
Contributions as a percentage of covered payroll 5.02% 4.54% City of Lakewood
Required Supplementary Information (Unaudited)
Schedule of Contributions - Other Postemployment Benefits (Continued) For the Year Ended June 30, 2024
Last Ten Fiscal Years
Other Postemployment Benefits Plan (Continued)
113
114

SUPPLEMENTARY INFORMATION
115
116
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Investment income $ 150 $ 150 $ 76,406 $ 76,256
Other income 180,000 187,300 239,092 51,792
Total revenues 180,150 187,450 315,498 128,048
EXPENDITURES:

Current:

Community development 211,400 209,800 3,157,178 (2,947,378) Total expenditures 211,400 209,800 3,157,178 (2,947,378)

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (31,250) (22,350) (2,841,680) 3,075,426 OTHER FINANCING USES:

Transfers out (200,000) (200,000) (200,000) -
Total other financing uses (200,000) (200,000) (200,000) - NET CHANGE IN FUND BALANCE $ (231,250) $ (222,350) (3,041,680) $ 3,075,426 FUND BALANCE:

Beginning of year 12,280,404
End of year $ 9,238,724
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, 2024
117
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Intergovernmental revenues $ 2,000,000 - $ $ 2,000,000 $ - Total revenues 2,000,000 - 2,000,000 -
EXPENDITURES:

Current:

Culture and leisure 2,000,000 - 75 1,999,925
Capital outlay:

Transportation 5,109,088 688,576 - 4,420,512
Total expenditures 7,109,088 - 688,651 6,420,437
NET CHANGE IN FUND BALANCE $ (5,109,088) - $ 1,311,349 $ 6,420,437 FUND BALANCE:

Beginning of year 1,836,455
End of year $ 3,147,804
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, 2024
118

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:

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.

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.

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.

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.

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.

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.

Miscellaneous Grants Special Revenue Fund - To account for multiple non-CIP related special revenue such as (1) LEAP grant – 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; (2) Measure H grant – to account for the Gateway Cities Innovation Plan to combat homelessness; (3) CalRecycle-SB 1383 grant – to assist with the efforts to reduce, recycle and reuse solid waste thereby preserving landfill capacity and protecting public health and safety and the environment; (4) Habitat for Humanity – to assist with cost in preparation to sell vacant lots; and lastly (5) Prop 84 grant – to assist in installing smart irrigation system at 3 City parks. 119
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.

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.

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.

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.

Permanent Local Housing Allocation Program ("PLHA") Grant Special Revenue Fund - To account for the State Senate Bill (SB)2 Building Homes and Jobs Act’s Permanent Local Housing Allocation (PLHA) program to provide a source of funding for cities and counties to help increase the availability of affordable homes.

NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)
Nonmajor Special Revenue Funds (Continued):
120
Beverage CA Natural
Container Recycle Resources LA County
AB 2766 Grant Agency Grant CDBG Measure M
ASSETS
Cash and investments - $ 126,751 $ - $ 206,619 $ 6,701,288 $ Accounts receivables 26,967 - - 28,358 119,156
Notes receivable - - - 479,690 -
Total assets $ 126,751 26,967 $ - $ 714,667 $ 6,820,444 $ Liabilities:

Accounts payable - $ 1,574 $ - $ 13,325 $ 28,511 $
Retention payable - - - 9,872 227
Due to other funds 4,690 - 539 333,998 -
Unearned revenue - - - - -
Total liabilities 1,574 4,690 539 357,195 28,738
Deferred Inflows of Resources:

Unavailable revenues - - - - -
Total deferred inflows of resources - - - - -
Fund Balances (Deficit):

Restricted for:

Public safety - - - - -
Transportation 22,277 - - - 6,791,706
Community development - - - 357,472 -
Health and sanitation - 125,177 - - -
Culture and leisure - - - - -
Unassigned (deficit) - - (539) - -
Total fund balances (deficit) 22,277 125,177 (539) 357,472 6,791,706 Total liabilities, deferred inflows of
resources and fund balances $ 26,967 $ 126,751 $ 714,667 - $ $ 6,820,444 (Continued)
City of Lakewood
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2024
Special Revenue Funds

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
121
Miscellaneous Open Park
Measure R Measure W Grants Space Dedication
ASSETS
Cash and investments 4,999,638 $ 3,757,139 $ 103,109 $ - $ 220,561 $ Accounts receivables - 105,100 133,392 10,539 -
Notes receivable - - - - -
Total assets $ 3,757,139 5,104,738 $ 236,501 $ 10,539 $ 220,561 $ Liabilities:

Accounts payable 133,421 $ 71,185 $ 9,098 $ 13 $ - $
Retention payable - - - - -
Due to other funds - - - 10,526 -
Unearned revenue - - - - -
Total liabilities 71,185 133,421 9,098 10,539 -
Deferred Inflows of Resources:

Unavailable revenues - - 115,149 10,539 -
Total deferred inflows of resources - - 115,149 10,539 - Fund Balances (Deficit):

Restricted for:

Public safety - - - - -
Transportation 4,971,317 - 112,254 - -
Community development - - - - -
Health and sanitation - - - - -
Culture and leisure 3,685,954 - - 220,561 -
Unassigned (deficit) - - (10,539) - -
Total fund balances (deficit) 4,971,317 3,685,954 112,254 (10,539) 220,561 Total liabilities, deferred inflows of
resources and fund balances $ 5,104,738 $ 3,757,139 $ 236,501 $ 10,539 $ 220,561 (Continued)
Special Revenue Funds
City of Lakewood
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2024

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
122
Road
Prop A Prop A Prop C PLHA Maintenance and
Recreation Transit Transportation Grant Rehab Account
ASSETS
Cash and investments - $ 1,893,706 $ 5,274,349 $ 1,152,783 $ 7,077,252 $ Accounts receivables 38,059 - 139,723 - 370,215
Notes receivable - - - - -
Total assets $ 1,893,706 38,059 $ 5,414,072 $ 1,152,783 $ 7,447,467 $ Liabilities:

Accounts payable - $ 21,977 $ 3,082 $ - $ 173,223 $
Retention payable - - - - -
Due to other funds 28,762 - - - -
Unearned revenue - - - 1,152,783 -
Total liabilities 21,977 28,762 3,082 1,152,783 173,223 Deferred Inflows of Resources:

Unavailable revenues 38,059 - - - -
Total deferred inflows of resources - 38,059 - - -
Fund Balances (Deficit):

Restricted for:

Public safety - - - - -
Transportation - 1,871,729 5,410,990 - 7,274,244
Community development - - - - -
Health and sanitation - - - - -
Culture and leisure - - - - -
Unassigned (deficit) (28,762) - - - -
Total fund balances (deficit) (28,762) 1,871,729 5,410,990 7,274,244 - Total liabilities, deferred inflows of
resources and fund balances $ 1,893,706 38,059 $ 5,414,072 $ 1,152,783 $ 7,447,467 $ (Continued)
Special Revenue Funds
City of Lakewood
Nonmajor Governmental Funds
Combining Balance Sheet (Continued)
June 30, 2024

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
123
State State TDA
SB2 Housing Sewer COPS Gasoline Article
Grant Reconstruction Grant Tax Grant
ASSETS
Cash and investments $ 111,932 - $ $ 100,463 $ - $ -
Accounts receivables - - 191,944 - 15,774
Notes receivable - - - - -
Total assets $ 111,932 - $ $ 100,463 $ 191,944 $ 15,774 Liabilities:

Accounts payable $ - $ - $ 33,333 $ - $ -
Retention payable - - - - -
Due to other funds - - 191,944 - 15,385
Unearned revenue - - - - -
Total liabilities - - 33,333 191,944 15,385
Deferred Inflows of Resources:

Unavailable revenues - - - - -
Total deferred inflows of resources - - - - -
Fund Balances (Deficit):

Restricted for:

Public safety - - 67,130 - -
Transportation - - - - 389
Community development - - - - -
Health and sanitation 111,932 - - - -
Culture and leisure - - - - -
Unassigned (deficit) - - - - -
Total fund balances (deficit) 111,932 - 67,130 - 389
Total liabilities, deferred inflows of
resources and fund balances $ 111,932 - $ $ 100,463 $ 191,944 $ 15,774 (Continued)

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
City of Lakewood
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2024
Special Revenue Funds
124
Used
Oil
Grant Total
ASSETS
Cash and investments $ 31,763,293 37,703 $
Accounts receivables 1,179,227 -
Notes receivable 479,690 -
Total assets $ 33,422,210 37,703 $
Liabilities:

Accounts payable $ 489,324 582 $
Retention payable 10,099 -
Due to other funds 585,844 -
Unearned revenue 1,164,099 11,316
Total liabilities 2,249,366 11,898
Deferred Inflows of Resources:

Unavailable revenues 163,747 -
Total deferred inflows of resources 163,747 -
Fund Balances (Deficit):

Restricted for:

Public safety 67,130 -
Transportation 26,454,906 -
Community development 357,472 -
Health and sanitation 262,914 25,805
Culture and leisure 3,906,515 -
Unassigned (deficit) (39,840) -
Total fund balances (deficit) 31,009,097 25,805
Total liabilities, deferred inflows of
resources and fund balances $ 33,422,210 37,703 $
(Concluded)

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
City of Lakewood
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2024
Special Revenue
Funds
125
Beverage
Container CA Natural
Recycle Resources LA County
AB2766 Grant Agency Grant CDBG Measure M
REVENUES:

Taxes - $ - $ $ - $ - $ -
Licenses and permits - - - - -
Investment income, rents and concession 1,772 4,475 - 15,209 211,290 Intergovernmental revenues 107,817 20,378 49,000 484,792 1,506,050 Other - - - - -
Total revenues 109,589 24,853 49,000 500,001 1,717,340
EXPENDITURES:

Current:

General government - 17,864 - 672 -
Public safety - - - - -
Transportation 10,000 18,470 - 105,109 -
Community development - - 355,919 - -
Health and sanitation - - - - -
Culture and leisure - - 115,373 - -
Capital outlay:

General government 383,967 - - - -
Transportation - - - - -
Community development - - - 23,017 -
Culture and leisure - - - - -
Total expenditures 393,967 36,334 494,981 - 105,109

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (284,378) (11,481) 49,000 5,020 1,612,231 OTHER FINANCING SOURCES (USES):

Transfers out - - - - -
Total other financing sources (uses) - - - - -
NET CHANGE IN FUND BALANCES (284,378) (11,481) 49,000 5,020 1,612,231 FUND BALANCES (DEFICIT):

Beginning of year 306,655 136,658 (49,539) 352,452 5,179,475 End of year $ 125,177 22,277 $ (539) $ 357,472 $ 6,791,706 $ (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, 2024
126
Miscellaneous Open Park
Measure R Measure W Grants Space Dedication
REVENUES:

Taxes $ - $ - $ - $ - $ 38,280
Licenses and permits - - - - -
Investment income, rents and concession 168,933 123,898 - - - Intergovernmental revenues 1,333,716 1,098,615 355,246 - - Other - - - - -
Total revenues 1,502,649 1,222,513 355,246 - 38,280
EXPENDITURES:

Current:

General government - - - - -
Public safety - 116,370 - - -
Transportation 638,140 599,383 80,960 - -
Community development - - 25,450 - -
Health and sanitation - 112,182 - - -
Culture and leisure - 28,554 - - -
Capital outlay:

General government - - - - -
Transportation 379,677 - 24,783 - -
Community development - - - - -
Culture and leisure - 62,221 - 2,934 -
Total expenditures 1,017,817 690,158 359,745 2,934 -

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 484,832 532,355 (4,499) (2,934) 38,280 OTHER FINANCING SOURCES (USES):

Transfers out - - - - -
Total other financing sources (uses) - - - - -
NET CHANGE IN FUND BALANCES 484,832 532,355 (4,499) (2,934) 38,280 FUND BALANCES (DEFICIT):

Beginning of year 4,486,485 3,153,599 116,753 (7,605) 182,281 End of year $ 3,685,954 4,971,317 $ $ 112,254 $ (10,539) $ 220,561 (Continued)
For the Year Ended June 30, 2024
Special Revenue Funds
City of Lakewood
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
127
Road
Prop A Prop A Prop C PLHA Maintenance and
Recreation Transit Transportation Grant Rehab Account
REVENUES:

Taxes - $ 2,144,539 $ 1,778,845 $ - $ - $
Licenses and permits - - - - -
Investment income, rents and concession - 70,343 184,116 - 227,527 Intergovernmental revenues 108,358 - - 2,322 2,124,276
Other - 51,991 - - -
Total revenues 2,266,873 108,358 1,962,961 2,322 2,351,803 EXPENDITURES:

Current:

General government - 21,973 - - -
Public safety - - - - -
Transportation - 2,348,358 610,389 - 773,223
Community development - 188 - 2,322 -
Health and sanitation - - - - -
Culture and leisure 38,056 - - - -
Capital outlay:

General government - - - - -
Transportation - 710,000 - - -
Community development - - - - -
Culture and leisure - - - - -
Total expenditures 38,056 2,370,519 1,320,389 2,322 773,223

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 70,302 (103,646) 642,572 1,578,580 - OTHER FINANCING SOURCES (USES):

Transfers out - - - - -
Total other financing sources (uses) - - - - -
NET CHANGE IN FUND BALANCES 70,302 (103,646) 642,572 1,578,580 - FUND BALANCES (DEFICIT):

Beginning of year (99,064) 1,975,375 4,768,418 5,695,664 - End of year $ 1,871,729 (28,762) $ $ 5,410,990 $ 7,274,244 - $ (Continued)
Special Revenue Funds
City of Lakewood
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) For the Year Ended June 30, 2024
Nonmajor Governmental Funds
128
SB2 State State TDA
Housing Sewer COPS Gasoline Article
Grant Reconstruction Grants Tax Grant
REVENUES:

Taxes $ - $ - $ - $ - $ -
Licenses and permits - - - - -
Investment income, rents and concession - - 3,925 47,430 8 Intergovernmental revenues 293,815 232,247 - 2,220,260 94,624 Other - - - - -
Total revenues 293,815 236,172 - 2,267,690 94,632
EXPENDITURES:

Current:

General government - - - - -
Public safety - 200,000 - - -
Transportation - - - - -
Community development - - - - -
Health and sanitation - - - - -
Culture and leisure - - - - -
Capital outlay:

General government - - - - -
Transportation - - - - 94,645
Community development 265,332 - - - -
Culture and leisure - - - - -
Total expenditures 265,332 200,000 - - 94,645

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 28,483 - 36,172 2,267,690 (13)
OTHER FINANCING SOURCES (USES):

Transfers out - - (2,267,690) - -
Total other financing sources (uses) - - (2,267,690) - - NET CHANGE IN FUND BALANCES 28,483 - 36,172 - (13)
FUND BALANCES (DEFICIT):

Beginning of year (28,483) 111,932 30,958 - 402
End of year $ 111,932 - $ $ 67,130 $ - $ 389
(Continued)
City of Lakewood
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2024
Special Revenue Funds
129
Used
Oil
Grant Total
REVENUES:

Taxes $ 3,961,664 - $
Licenses and permits - -
Investment income, rents and concession 1,058,926 -
Intergovernmental revenues 10,044,041 12,525
Other 51,991 -
Total revenues 15,116,622 12,525
EXPENDITURES:

Current:

General government 40,509 -
Public safety 316,370 -
Transportation 5,184,032 -
Community development 383,879 -
Health and sanitation 124,707 12,525
Culture and leisure 181,983 -
Capital outlay:

General government - 383,967
Transportation 1,209,105 -
Community development 288,349 -
Culture and leisure 65,155 -
Total expenditures 8,178,056 12,525

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 6,938,566 -
OTHER FINANCING SOURCES (USES):

Transfers out (2,267,690) -
Total other financing sources (uses) (2,267,690) -
NET CHANGE IN FUND BALANCES 4,670,876 -
FUND BALANCES (DEFICIT):

Beginning of year 25,805 26,338,221
End of year $ 31,009,097 25,805 $
(Concluded)
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, 2024
130
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Investment income $ 3,000 $ 3,000 $ 1,772 $ (1,228)
Intergovernmental revenues 100,000 100,000 107,817 7,817 Other 1,000 - - -
Total revenues 104,000 103,000 109,589 6,589
EXPENDITURES:

Current:

Transportation 10,000 10,000 10,000 -
Capital outlay:

General government 420,000 - 383,967 36,033
Total expenditures 10,000 430,000 393,967 36,033

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 94,000 (327,000) (284,378) 42,622
OTHER FINANCING SOURCES (USES):

Proceed from sale of property 7,000 7,000 (7,000) -
Total other financing sources (use) 7,000 7,000 (7,000) - NET CHANGE IN FUND BALANCE $ 101,000 $ (320,000) (284,378) $ 35,622 FUND BALANCE:

Beginning of year 306,655
End of year $ 22,277
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, 2024
131
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Investment income $ 1,500 $ 4,000 $ 4,475 $ 475
Intergovernmental revenues 17,000 20,378 20,378 -
Total revenues 18,500 24,378 24,853 475
EXPENDITURES:

Current:

General government 799 22,592 17,864 4,728
Transportation 18,500 18,500 18,470 30
Total expenditures 19,299 41,092 36,334 4,758
NET CHANGE IN FUND BALANCE $ (799) $ (16,714) (11,481) $ 5,233 FUND BALANCE:

Beginning of year 136,658
End of year $ 125,177
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, 2024
132
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Intergovernmental revenues $ 49,000 - $ $ 49,000 $ -
Total revenues 49,000 - 49,000 -
EXPENDITURES:

Capital outlay:

Culture and leisure 1,999,461 - 1,999,461 -
Total expenditures 1,999,461 - 1,999,461 -
NET CHANGE IN FUND BALANCE $ (1,950,461) - $ 49,000 $ 1,999,461 FUND BALANCE (DEFICIT): -
Beginning of year (49,539)
End of year $ (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, 2024
133
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Investment income $ 5,000 $ 3,000 $ 15,209 $ 12,209
Intergovernmental revenues 445,734 445,734 484,792 39,058 Total revenues 450,734 448,734 500,001 51,267
EXPENDITURES:

Current:

General government 5,690 5,690 672 5,018
Transportation - - - -
Community development 240,565 404,776 355,919 48,857
Culture and leisure 115,785 113,471 115,373 (1,902)
Capital outlay:

Community development 1,094,972 - 23,017 1,071,955
Total expenditures 362,040 1,618,909 494,981 1,123,928
NET CHANGE IN FUND BALANCE $ 88,694 $ (1,170,175) 5,020 $ 1,175,195 FUND BALANCE:

Beginning of year 352,452
End of year $ 357,472
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, 2024
134
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Investment income $ 30,000 $ 140,000 $ 211,290 $ 71,290 Intergovernmental revenues 1,647,993 1,647,993 1,506,050 (141,943) Total revenues 1,677,993 1,787,993 1,717,340 (70,653)
EXPENDITURES:

Current:

Transportation 215,000 467,837 105,109 362,728
Capital outlay:

Transportation 1,714,385 - 1,714,385 - ,
Total expenditures 2,182,222 215,000 105,109 2,077,113
NET CHANGE IN FUND BALANCE $ (394,229) 1,462,993 $ 1,612,231 2,006,460 $ FUND BALANCE:

Beginning of year 5,179,475
End of year $ 6,791,706
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, 2024
135
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Investment income $ 30,000 $ 120,000 $ 168,933 $ 48,933 Intergovernmental revenues 1,454,111 1,454,111 1,333,716 (120,395) Total revenues 1,484,111 1,574,111 1,502,649 (71,462)
EXPENDITURES:

Current:

Transportation 698,176 906,661 638,140 268,521
Capital outlay:

Transportation 1,956,693 - 379,677 1,577,016
Total expenditures 698,176 2,863,354 1,017,817 1,845,537 NET CHANGE IN FUND BALANCE $ 785,935 $ (1,289,243) 484,832 $ 1,774,075 FUND BALANCE:

Beginning of year 4,486,485
End of year $ 4,971,317
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, 2024
136
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Investment income $ 5,000 $ 100,000 $ 123,898 $ 23,898
Intergovernmental revenues 1,550,066 - 1,098,615 (451,451) Total revenues 5,000 1,650,066 1,222,513 (427,553)
EXPENDITURES:

Current:

Transportation 647,500 734,245 599,383 134,862
Culture and leisure 38,294 38,275 28,554 9,721
Capital outlay:

Culture and leisure 275,206 - 62,221 212,985
Total expenditures 685,794 1,047,726 690,158 357,568
NET CHANGE IN FUND BALANCE $ (680,794) $ 602,340 532,355 $ (69,985) FUND BALANCE:

Beginning of year 3,153,599
End of year $ 3,685,954
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, 2024
137
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Intergovernmental revenues $ 166,700 $ 329,147 $ 355,246 $ 26,099 Total revenues 166,700 329,147 355,246 26,099
EXPENDITURES:

Current:

Public safety 150,000 131,250 116,370 14,880
Transportation 307,837 - 80,960 226,877
Community development 17,350 - 25,450 (8,100)
Health and sanitation 114,000 - 112,182 1,818
Capital outlay:

Capital outlay: 24,783 - 24,783 -
Total expenditures 150,000 595,220 359,745 235,475
NET CHANGE IN FUND BALANCE $ 16,700 $ (266,073) (4,499) $ 261,574 FUND BALANCE:

Beginning of year 116,753
End of year $ 112,254
City of Lakewood
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Miscellaneous Special Revenue Fund
For the Year Ended June 30, 2024
138
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Intergovernmental revenues $ 50,000 - $ $ (50,000) - $
Total revenues 50,000 - (50,000) -
EXPENDITURES:

Capital outlay:

Culture and leisure 1,028,281 - 2,934 1,025,347
Total expenditures 1,028,281 - 2,934 1,025,347
NET CHANGE IN FUND BALANCE $ (978,281) - $ (2,934) $ 975,347 FUND BALANCE (DEFICIT):

Beginning of year (7,605)
End of year $ (10,539)
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, 2024
139
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Taxes $ 20,000 $ 20,000 $ 38,280 $ 18,280
Total revenues 20,000 20,000 38,280 18,280
NET CHANGE IN FUND BALANCE $ 20,000 $ 20,000 38,280 $ 18,280 FUND BALANCE:

Beginning of year 182,281
End of year $ 220,561
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, 2024
140
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Intergovernmental revenues $ 38,440 $ 108,359 $ 108,358 $ (1) Total revenues 38,440 108,359 108,358 (1)
EXPENDITURES:

Current:

Culture and leisure 37,935 37,285 38,056 (771)
Total expenditures 37,935 37,285 38,056 (771)
NET CHANGE IN FUND BALANCE $ 505 $ 71,074 70,302 $ (772) FUND BALANCE (DEFICIT):

Beginning of year (99,064)
End of year $ (28,762)
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, 2024
141
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Taxes $ 2,337,404 $ 2,337,404 $ 2,144,539 $ (192,865)
Investment income 12,000 62,000 70,343 8,343
Other 51,991 - 51,991 -
Total revenues 2,451,395 2,349,404 2,266,873 (184,522)
EXPENDITURES:

Current:

General government 23,453 23,468 21,973 1,495
Transportation 1,320,079 2,356,654 2,348,358 8,296
Community development 4,975 1,935 188 1,747
Total expenditures 2,382,057 1,348,507 2,370,519 11,538 NET CHANGE IN FUND BALANCE $ 69,338 1,000,897 $ (103,646) (172,984) $ FUND BALANCE:

Beginning of year 1,975,375
End of year $ 1,871,729
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, 2024
142
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Taxes $ 1,938,815 $ 1,938,815 $ 1,778,845 $ (159,970)
Investment income 25,000 120,000 184,116 64,116
Total revenues 1,963,815 2,058,815 1,962,961 (95,854)
EXPENDITURES:

Current:

Transportation 779,999 678,544 610,389 68,155
Capital outlay:

Transportation 710,000 - 710,000 -
Total expenditures 779,999 1,388,544 1,320,389 68,155
NET CHANGE IN FUND BALANCE $ 1,183,816 $ 670,271 642,572 $ (27,699) FUND BALANCE:

Beginning of year 4,768,418
End of year $ 5,410,990
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, 2024
143
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Investment income $ - $ 2,322 - $ $ 2,322
Total revenues - 2,322 - 2,322
EXPENDITURES:

Current:

Community development - 2,322 - (2,322)
Total expenditures - 2,322 - (2,322)
NET CHANGE 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 Permanent Local Housing Allocation Program ("PLHA") Grant Special Revenue Fund For the Year Ended June 30, 2024
144
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Investment income $ 30,000 $ 150,000 $ 227,527 $ 77,527 Intergovernmental revenues 1,830,000 1,830,000 2,124,276 294,276 Total revenues 1,980,000 1,860,000 2,351,803 371,803
EXPENDITURES:

Current:

Transportation 600,000 780,000 773,223 6,777
Capital outlay:

Transportation - 3,037,790 - 3,037,790
Total expenditures 3,817,790 600,000 773,223 3,044,567
NET CHANGE IN FUND BALANCE $ (1,837,790) 1,260,000 $ 1,578,580 3,416,370 $ FUND BALANCE:

Beginning of year 5,695,664
End of year $ 7,274,244
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, 2024
145
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Intergovernmental revenues $ 306,916 - $ $ 293,815 $ (13,101) Total revenues 306,916 - 293,815 (13,101)
EXPENDITURES:

Capital outlay:

Community development 278,433 - 265,332 13,101
Total expenditures 278,433 - 265,332 13,101
NET CHANGE IN FUND BALANCE $ 28,483 - $ 28,483 $ -
FUND BALANCE (DEFICIT):

Beginning of year (28,483)
End of year $ -
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, 2024
146
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

License and permits $ 300 $ 300 $ - $ (300)
Total revenues 300 300 - (300)
NET CHANGE IN FUND BALANCE $ 300 $ 300 - $ (300)
FUND BALANCE:

Beginning of year 111,932
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, 2024
147
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Investment income $ 1,000 $ 4,000 $ 3,925 $ (75)
Intergovernmental revenues 200,000 240,000 232,247 (7,753) Total revenues 201,000 244,000 236,172 (7,828)
EXPENDITURES:

Current:

Public safety 200,000 200,000 200,000 -
Total expenditures 200,000 200,000 200,000 -
NET CHANGE IN FUND BALANCE $ 1,000 $ 44,000 36,172 $ (7,828) FUND BALANCE:

Beginning of year 30,958
End of year $ 67,130
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, 2024
148
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Investment income $ 10,000 $ 20,000 $ 47,430 $ 27,430
Intergovernmental revenues 2,318,500 2,310,500 2,220,260 (90,240) Total revenues 2,328,500 2,330,500 2,267,690 (62,810)
OTHER FINANCING USES:

Transfers out (2,328,500) (2,328,500) (2,267,690) 60,810 Total other financing uses (2,328,500) (2,328,500) (2,267,690) (60,810) NET CHANGE IN FUND BALANCE $ 2,000 - $ (123,620) - $
FUND BALANCE:

Beginning of year -
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, 2024
149
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Investment income (loss), rents and concession $ - $ 50 $ 8 $ (42) Intergovernmental revenues 94,624 94,624 94,624 -
Total revenues 94,624 94,674 94,632 (42)
EXPENDITURES:

Capital outlay:

Transportation 94,646 - 94,645 1
Total expenditures 94,646 - 94,645 1
NET CHANGE IN FUND BALANCE $ 94,624 $ 28 (13) $ (41)
FUND BALANCE:

Beginning of year 402
End of year $ 389
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, 2024
150
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Intergovernmental revenues $ 20,000 $ 12,525 $ 12,525 $ - Total revenues 20,000 12,525 12,525 -
EXPENDITURES:

Current:

Health and sanitation 22,590 12,525 12,525 -
Total expenditures 22,590 12,525 12,525 -
NET CHANGE IN FUND BALANCE $ (2,590) $ - - $ -
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, 2024
151
152
These two Internal Service Funds were closed to the General Fund at June 30, 2024.

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. 153
154
Central Print
Garage Shop Total
ASSETS
Current Assets:

Cash and investments $ - $ - $ -
Inventories - - -
Prepaid items - - -
Total current assets - - -
Noncurrent assets:

Capital assets:

Capital assets, being depreciated:

Equipment - - -
Less: accumulated depreciation - - -
Total capital assets, net - - -
Total noncurrent assets - - -
Total assets - - -

LIABILITIES
Current liabilities:

Accounts payable - - -
Accrued liabilities - - -
Total current liabilities - - -
Total liabilities - - -

NET POSITION
Investment in capital assets - - -
Unrestricted - - -
Total net position $ - - $ $ -
City of Lakewood
Combining Statement of Net Position
Internal Service Funds
June 30, 2024
155
Central Print
Garage Shop Total
OPERATING REVENUES:

Billing to departments $ 118,135 $ 502 $ 118,637
Total operating revenues 118,135 502 118,637
OPERATING EXPENSES:

Operating expenses 1,301,765 293,685 1,595,450
Depreciation 28,741 - 28,741
Total operating expenses 1,330,506 293,685 1,624,191
OPERATING INCOME (LOSS) (1,212,371) (293,183) (1,505,554) NONOPERATING (EXPENSE):

Capital contributions (76,158) (76,158) -
Total nonoperating (expenses) (76,158) (76,158) -
INCOME (LOSS) BEFORE TRANSFERS (1,288,529) (293,183) (1,581,712) TRANSFERS:

Transfers in 1,165,949 292,517 1,458,466
Total other financing sources (uses) 1,165,949 292,517 1,458,466 CHANGE IN NET POSITION (122,580) (666) (123,246)
NET POSITION (DEFICIT):

Beginning of the year 122,580 666 123,246
End of the year $ - - $ $ -
City of Lakewood
Combining Statement of Revenues, Expenses, and Changes in Net Position Internal Service Funds
For the Year Ended June 30, 2024
156
Central Print
Garage Shop Total
CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from interfund services provided $ 118,135 $ 502 $ 118,637 Payments to suppliers for goods and services (1,284,084) (293,019) (1,577,103) Net cash (used in) operating activities (1,165,949) (292,517) (1,458,466)

CASH FLOWS FROM NONCAPITAL AND
RELATED FINANCING ACTIVITIES:

Transfers in 1,165,949 292,517 1,458,466
Net cash provided by capital and related financing activities 1,165,949 292,517 1,458,466

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Acquisition of capital assets - - -
Net cash (used in) capital and related financing activities - - - 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) $ (1,212,371) $ (293,183) $ (1,505,554) Adjustments to reconcile operating (loss) to net cash
(used in) operating activities:

Depreciation 28,741 - 28,741
Change in assets and liabilities:
(Increase) decrease in inventories 1,647 6,414 8,061
(Increase) decrease in prepaid 58,056 - 58,056
Increase (decrease) in accounts payable (30,977) (1,010) (31,987) Increase (decrease) in accrued liabilities (11,045) (4,738) (15,783) Total adjustment 46,422 666 47,088
Net cash (used in) operating activities $ (292,517) (1,165,949) $ (1,458,466) $ NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES:

Transfer capital assets to the governmental activities to close the fund $ - (76,158) $ (76,158) $ City of Lakewood
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2024
157
158

STATISTICAL SECTION
159
160
Contents: Pages
162-171
173-181
182-189
190
191-195
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, 2024
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.
161
2015 2016 2017** 2018 2019
Government activities:

Net investment in capital assets $ 88,511,175 $ 90,100,125 $ 94,918,550 $ 100,416,548 $ 108,108,047 Restricted 15,464,118 10,805,986 15,160,381 21,751,112 24,069,839 Unrestricted 26,918,679 31,932,235 25,186,231 17,346,009 16,446,872 Total governmental activities
net position $ 130,893,972 $ 132,838,346 $ 135,265,162 $ 139,513,669 $ 148,624,758 Business-type activities:

Net investment in capital assets $ 27,408,545 $ 28,527,530 $ 27,587,388 $ 26,543,189 $ 26,327,391 Restricted - - - - -
Unrestricted 6,004,051 6,287,737 9,848,943 11,954,770 13,057,126 Total business-type activities
net position $ 33,412,596 $ 34,815,267 $ 37,436,331 $ 38,497,959 $ 39,384,517 Primary government:

Net investment in capital assets $ 115,919,720 $ 118,627,655 $ 122,505,938 $ 126,959,737 $ 134,435,438 Restricted 15,464,118 10,805,986 15,160,381 21,751,112 24,069,839 Unrestricted 32,922,730 38,219,972 35,035,174 29,300,779 29,503,998 Total primary government net position $ 164,306,568 $ 167,653,613 $ 172,701,493 $ 178,011,628 $ 188,009,275 ** 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 162
2020 2021 2022 2023 2024
Government activities:

Net investment in capital assets $ 111,479,193 $ 115,207,736 $ 118,073,852 $ 121,076,026 $ 125,001,849 Restricted 27,088,588 36,051,636 38,566,384 41,623,987 44,113,666 Unrestricted 13,077,407 21,717,181 37,163,986 55,003,027 71,442,225 Total governmental activities
net position $ 151,645,188 $ 172,976,553 $ 193,804,222 $ 217,703,040 $ 240,557,740 Business-type activities:

Net investment in capital assets $ 27,211,808 $ 27,173,204 $ 27,686,379 $ 27,470,407 $ 31,927,110 Restricted - - - - -
Unrestricted 12,982,718 14,792,197 14,779,213 15,583,527 12,782,561 Total business-type activities
net position $ 40,194,526 $ 41,965,401 $ 42,465,592 $ 43,053,934 $ 44,709,671 Primary government:

Net investment in capital assets $ 138,691,001 $ 142,380,940 $ 145,760,231 $ 148,546,433 $ 156,928,959 Restricted 27,088,588 36,051,636 38,566,384 41,623,987 44,113,666 Unrestricted 26,060,125 36,509,378 51,943,199 70,586,554 84,224,786 Total primary government net position $ 191,839,714 $ 214,941,954 $ 236,269,814 $ 260,756,974 $ 285,267,411 (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 163
2015 2016 2017 2018 2019
Expenses:

Governmental Activities:

General government $ 10,354,630 $ 7,187,053 $ 7,618,899 $ 8,414,207 $ 8,623,397 Public Safety 13,525,219 14,271,008 14,266,703 14,934,025 15,587,612 Transportation 4,772,202 4,740,336 4,915,779 5,319,350 5,618,743 Community development 4,622,036 4,759,414 5,216,400 5,602,768 5,755,708 Health and sanitation 4,888,091 4,901,125 5,066,047 5,173,751 5,440,069 Culture and leisure 12,090,213 11,770,595 12,757,229 13,919,102 14,023,325 Unallocated infrastructure depreciation 2,695,986 2,721,461 2,732,259 2,680,800 2,610,286 Interest on long-term debt - 15,143 14,308 12,246 10,065 Total governmental activities expenses 52,948,377 50,366,135 52,587,624 56,056,249 57,669,205 Business-type activities:

Water 9,554,985 9,628,369 9,316,642 12,124,940 12,722,577 Total primary government expenses $ 62,503,362 $ 59,994,504 $ 61,904,266 $ 68,181,189 $ 70,391,782 Program revenues:

Governmental activities:

Charges for services:

General government $ 1,679,199 $ 1,790,751 $ 1,961,794 $ 1,701,064 $ 1,842,865 Public safety 866,028 912,841 828,408 799,898 824,844
Community development 1,647,432 1,754,359 1,687,297 1,644,380 1,831,695 Health and sanitation 5,242,204 5,309,601 5,430,005 5,493,200 5,736,770 Culture and leisure 1,577,319 1,543,688 1,591,984 1,505,685 1,627,965 Operating grants and contributions 4,176,696 3,585,692 6,100,046 8,633,736 9,751,629 Capital grants and contributions 1,726,390 3,365,208 8,542,663 6,315,712 8,315,163 Total governmental activities program
revenues 16,915,268 18,262,140 26,142,197 26,093,675 29,930,931 Business-type activities:

Charges for services:

Water 10,311,109 10,930,852 10,873,311 13,003,840 13,354,770 Operating grants and contributions - - - - -
Total business-type activities program
revenues 10,311,109 10,930,852 10,873,311 13,003,840 13,354,770 Total primary government
program revenues $ 27,226,377 $ 29,192,992 $ 37,015,508 $ 39,097,515 $ 43,285,701 Net revenues (expenses):

Governmental activities $ (36,033,109) $ (32,103,995) $ (26,445,427) $ (29,962,574) $ (27,738,274) Business-type activities 756,124 1,302,483 1,556,669 878,900 632,193 Total net revenues (expenses) $ (35,276,985) $ (30,801,512) $ (24,888,758) $ (29,083,674) $ (27,106,081) (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 164
2020 2021 2022 2023 2024
Expenses:

Governmental Activities:

General government $ 9,633,988 $ 11,542,121 $ 9,982,626 $ 11,937,554 $ 14,693,300 Public Safety 15,847,990 16,955,187 17,505,002 19,143,257 19,847,784 Transportation 6,191,543 6,551,094 6,503,537 7,344,923 9,196,277 Community development 5,965,959 6,018,023 5,291,189 6,852,859 11,541,397 Health and sanitation 5,488,139 5,705,506 6,083,718 6,601,028 7,018,202 Culture and leisure 14,317,749 14,449,389 13,651,705 15,790,357 16,854,174 Unallocated infrastructure depreciation 2,472,242 2,772,636 2,723,750 2,853,732 2,960,331 Interest on long-term debt 24,865 25,131 6,525 11,291 7,388 Total governmental activities expenses 59,942,475 64,019,087 61,748,052 70,535,001 82,118,853 Business-type activities:

Water 12,340,848 10,534,148 11,481,342 11,752,016 10,916,222 Total primary government expenses $ 72,283,323 $ 74,553,235 $ 73,229,394 $ 82,287,017 $ 93,035,075 Program revenues:

Governmental activities:

Charges for services:

General government $ 1,723,330 $ 1,549,999 $ 1,450,370 $ 2,701,247 $ 1,471,591 Public safety 739,734 721,881 838,925 413,873 393,394
Community development 1,647,529 1,890,846 1,962,283 3,164,754 2,984,948 Health and sanitation 6,017,870 6,332,537 6,483,492 7,145,242 7,530,143 Culture and leisure 1,050,990 578,668 1,232,960 1,738,400 2,290,947 Operating grants and contributions 8,862,665 13,234,375 13,575,994 16,264,335 26,237,087 Capital grants and contributions 6,378,745 10,424,134 2,957,680 2,532,217 1,534,046 Total governmental activities program
revenues 26,420,863 34,732,440 28,501,704 33,960,068 42,442,156 Business-type activities:

Charges for services:

Water 12,869,000 13,965,629 13,787,798 13,497,514 12,992,428 Operating grants and contributions - - - 734,065 -
Total business-type activities program
revenues 12,869,000 13,965,629 13,787,798 13,497,514 13,726,493 Total primary government
program revenues $ 39,289,863 $ 48,698,069 $ 42,289,502 $ 47,457,582 $ 56,168,649 Net revenues (expenses):

Governmental activities $ (33,521,612) $ (29,286,647) $ (33,246,348) $ (36,574,933) $ (39,676,697) Business-type activities 528,152 3,431,481 2,306,456 1,745,498 2,810,271 Total net revenues (expenses) $ (32,993,460) $ (25,855,166) $ (30,939,892) $ (34,829,435) $ (36,866,426) (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 165
2015 2016 2017 2018 2019
General revenues and other changes in
net position:

Governmental activities:

Taxes:

Sales taxes $ 15,890,678 $ 15,961,352 $ 14,133,828 $ 14,303,519 $ 14,635,987 Property taxes 11,831,561 12,747,876 13,039,739 13,795,722 14,637,510 Franchise taxes 1,757,264 1,699,343 1,430,601 1,598,487 1,543,020 Business operation taxes 565,441 1,016,140 674,880 650,728 651,364 Utility user taxes 3,464,047 3,398,962 3,314,095 3,163,738 3,061,021 Other taxes 372,276 378,213 442,393 424,144 409,432
Gain on sale of property - 114,000 - - 77,715
Transfers in - - - - -
Investment income (loss) 264,105 482,676 459,477 274,743 1,833,314 Total governmental activities 34,145,372 35,684,562 33,609,013 34,211,081 36,849,363 Business-type activities:

Gain on sale of capital assets - 1,035,021 - - -
Transfers out - - - - -
Investment income 80,562 100,188 131,040 182,728 254,365 Total business-type activities 80,562 100,188 1,166,061 182,728 254,365 Total primary government $ 34,225,934 $ 35,784,750 $ 34,775,074 $ 34,393,809 $ 37,103,728 Changes in net position, before special item
Governmental activities $ 1,373,984 $ (348,547) $ 1,505,018 $ 7,765,654 $ 6,886,789 Business-type activities 1,802,315 856,312 2,468,544 1,739,397 1,133,265 Special item (1,636,193) - - - -
Changes in net position
Governmental activities $ 1,373,984 $ (1,984,740) $ 1,505,018 $ 7,765,654 $ 6,886,789 Business-type activities 1,802,315 856,312 2,468,544 1,739,397 1,133,265 Total primary government $ (1,128,428) 3,176,299 $ $ 3,973,562 $ 9,505,051 $ 8,020,054 (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 166
2020 2021 20222 2023 2024
General revenues and other changes in
net position:

Governmental activities:

Taxes:

Sales taxes $ 13,555,147 $ 26,182,543 $ 31,256,373 $ 31,642,524 $ 31,208,121 Property taxes 15,657,307 16,600,433 16,945,351 18,058,390 18,819,630 Franchise taxes 1,519,485 1,535,167 1,582,709 1,706,982 1,722,859 Business operation taxes 462,677 560,252 578,867 645,799 699,707 Utility user taxes 2,650,026 3,034,416 3,361,075 3,851,673 3,836,274 Other taxes 469,328 541,524 582,151 404,168 409,272
Gain on sale of property - - 146,530 - 85,029
Transfers in 1,795,700 - 1,795,700 1,795,700 1,580,728
Investment income (loss) 2,228,072 182,662 (2,028,209) 2,221,985 4,169,777 Total governmental activities 36,542,042 50,432,697 54,074,017 60,473,751 62,531,397 Business-type activities:

Gain on sale of capital assets - - - - -
Transfers out (1,795,700) - (1,795,700) (1,795,700) (1,580,728) Investment income 281,857 135,094 (10,565) 638,544 426,194 Total business-type activities 281,857 (1,660,606) (1,806,265) (1,157,156) (1,154,534) Total primary government $ 36,823,899 $ 48,772,091 $ 52,267,752 $ 59,316,595 $ 61,376,863 Changes in net position, before special item
Governmental activities $ 8,803,768 $ 16,911,085 $ 20,827,669 $ 23,898,818 $ 22,854,700 Business-type activities 914,050 (1,132,454) 500,191 588,342 1,655,737 Special item - - - - -
Changes in net position
Governmental activities $ 8,803,768 $ 16,911,085 $ 20,827,669 $ 23,898,818 $ 22,854,700 Business-type activities 914,050 (1,132,454) 500,191 588,342 1,655,737 Total primary government $ 15,778,631 9,717,818 $ $ 21,327,860 $ 24,487,160 $ 24,510,437 (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 167
2015 2016 2017 2018 2019
General fund:

Nonspendable $ 3,334,102 $ 9,007,179 $ 9,242,133 $ 9,614,693 $ 9,887,493 Restricted - - - 617,122 -
Committed 28,993,127 22,470,125 24,641,778 25,016,682 24,952,465 Assigned 8,784,875 9,060,489 7,941,985 4,573,815 4,941,360 Unassigned 4,737,497 2,545,033 1,388,222 1,721,244 2,182,964 Total general fund $ 45,849,601 $ 43,082,826 $ 43,214,118 $ 40,926,434 $ 42,581,404 All other governmental funds:

Nonspendable $ 10,614,864 $ 7,216,652 $ 7,293,057 $ - $ - Restricted 4,807,418 10,304,699 11,811,420 21,385,895 23,637,463 Committed - - - - -
Unassigned (834,768) (657,720) (3,223,534) (2,000,042) (2,813,850) Total all other governmental funds $ 14,587,514 $ 16,863,631 $ 15,880,943 $ 19,385,853 $ 20,823,613 (modified accrual basis of accounting)
Fiscal Year
City of Lakewood
Fund Balances of Governmental Funds
Last Ten Fiscal Years
Source: Department of Administrative Services, City of Lakewood 168
2020 2021 2022 2023 2024
General fund:

Nonspendable $ 10,088,435 $ 10,333,944 $ 10,562,095 $ 10,869,234 $ 11,246,722 Restricted 62,478 - - - -
Committed 26,389,437 27,296,545 30,913,516 32,671,856 36,564,625 Assigned 4,905,102 4,905,102 20,357,986 33,777,497 48,544,750 Unassigned 1,306,735 10,327,717 2,535,221 4,094,060 2,616,589 Total general fund $ 42,752,187 $ 52,863,308 $ 64,368,818 $ 81,412,647 $ 98,972,686 All other governmental funds:

Nonspendable $ - $ - $ - $ - $ -
Restricted 27,025,084 32,367,386 37,715,646 38,803,316 43,435,465 Committed - - 1,836,455 - -
Unassigned (2,942,067) 2,228,398 (363,859) (184,691) (39,840) Total all other governmental funds $ 24,083,017 $ 34,595,784 $ 37,351,787 $ 40,455,080 $ 43,395,625 (modified accrual basis of accounting)
Fiscal Year
City of Lakewood
Fund Balances of Governmental Funds (Continued)
Last Ten Fiscal Years
Source: Department of Administrative Services, City of Lakewood 169
2015 2016 2017 2018 2019
Revenues:

Taxes $ 26,285,474 $ 28,512,153 $ 27,428,381 $ 27,840,342 $ 28,653,388 Licenses and permits 1,236,029 1,305,394 1,271,711 1,213,898 1,356,208 Fines and forfeitures 800,988 792,042 726,158 803,671 877,832 Investment income, rents and concessions 1,348,984 1,579,999 1,628,636 1,549,043 3,172,061 From other agencies 12,262,584 13,040,289 16,801,522 21,529,691 22,305,483 Current service charges 7,603,770 7,820,247 7,676,870 7,727,896 8,102,123 Other 3,883,093 1,319,267 1,332,492 1,296,960 1,369,123 Total revenues 53,420,922 54,369,391 56,865,770 61,961,501 65,836,218 Expenditures:

Current:

General government 10,121,711 7,469,038 7,598,738 7,775,703 7,928,367 Public safety 13,279,510 14,035,382 13,957,135 14,643,744 15,297,771 Transportation 4,529,295 4,848,633 4,794,659 4,938,424 4,994,979 Community development 4,550,855 4,877,917 5,266,588 5,448,344 5,576,834 Health and sanitation 4,884,931 4,908,103 5,064,902 5,173,879 5,406,156 Culture and leisure 11,029,303 11,356,886 11,845,756 12,296,334 12,275,314 Capital outlay:

General government 43,032 60,392 71,163 125,383 201,076 Public safety 894,527 - - - -
Transportation 605,487 2,474,885 7,838,438 6,122,168 9,821,988 Community Development 55,238 85,996 30,256 7,116 24,532 Culture and leisure 2,776,202 2,443,762 1,313,659 4,163,308 1,994,314 Debt service:

Principal retirement - 31,313 35,564 37,626 39,807
Interest and fiscal charges - 15,143 14,308 12,246 10,065 Total expenditures 51,875,564 53,501,977 57,831,166 60,744,275 63,571,203 Excess of revenues over (under)
expenditures 1,545,358 867,414 (965,396) 1,217,226 2,265,015 Other financing sources (uses):

Issuance of lease payable 278,121 - - 750,000 -
Transfers in 2,107,215 1,771,504 1,564,966 1,808,209 1,571,741 Transfers out (2,107,215) (1,771,504) (1,564,966) (1,808,209) (1,571,741) Sale of capital assets - 114,000 - - 77,715
Proceeds from lease issuance - - - - -
Total other financing sources (uses) 278,121 - 114,000 827,715 - SPECIAL ITEMS:

Gain(loss) on interest adjustment on the
loans to the Successor Agency (1,636,193) - - - -
Net change in fund balances $ 1,545,358 $ (490,658) $ (851,396) $ 1,217,226 $ 3,092,730 Debt service as a percentage of
noncapital expenditures 0.00% 0.10% 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 170
2020 2021 2022 2023 2024
Revenues:

Taxes $ 27,684,978 $ 41,098,863 $ 47,537,386 $ 49,054,580 $ 48,946,691 Licenses and permits 1,311,229 1,451,338 1,454,830 2,215,035 2,153,053 Fines and forfeitures 734,643 748,656 743,167 682,411 751,654 Investment income, rents and concessions 3,392,410 924,009 (1,204,812) 3,947,978 6,575,053 From other agencies 21,703,390 31,019,031 21,443,120 23,569,755 32,984,600 Current service charges 7,789,524 8,076,990 8,686,921 9,658,905 9,963,139 Other 1,066,017 1,096,083 2,661,610 3,315,184 2,339,738 Total revenues 63,682,191 84,414,970 81,322,222 92,443,848 103,713,928 Expenditures:

Current:

General government 8,241,505 10,841,466 10,940,429 11,443,139 13,153,299 Public safety 15,583,762 16,673,133 17,740,952 18,731,590 19,494,476 Transportation 5,279,004 6,008,396 7,155,428 6,985,144 8,788,922 Community development 5,544,163 5,772,175 5,583,986 6,686,615 11,267,874 Health and sanitation 5,477,528 5,706,406 6,099,067 6,468,720 6,847,261 Culture and leisure 11,886,225 12,511,815 14,249,773 14,215,149 15,286,527 Capital outlay:

General government 146,425 - 503,288 657,821 1,216,637
Public safety 103,239 - 14,400 293,083 131,106
Transportation 7,137,458 6,675,851 3,868,435 5,560,484 2,456,184 Community Development 7,414 22,048 205,203 315,945 405,559 Culture and leisure 881,672 1,097,870 2,266,698 1,528,898 4,092,426 Debt service:

Principal retirement 185,206 191,498 243,609 270,147 271,906 Interest and fiscal charges 28,067 21,775 16,757 12,333 8,458 Total expenditures 60,252,004 65,772,097 68,888,025 73,169,068 83,420,635 Excess of revenues over (under)
expenditures 3,430,187 18,642,873 12,434,197 19,274,780 20,293,293 Other financing sources (uses):

Issuance of lease payable - - - - -
Transfers in 2,213,002 3,593,665 3,854,822 4,302,783 4,506,716 Transfers out (2,213,002) (1,797,965) (2,059,122) (3,695,351) (4,384,454) Sale of capital assets - - 146,530 - 85,029
Proceeds from lease issuance - - 31,616 118,380 -
Total other financing sources (uses) 1,795,700 - 1,827,316 872,342 207,291 SPECIAL ITEMS:

Gain(loss) on interest adjustment on the
loans to the Successor Agency - - - - -
Net change in fund balances $ 3,430,187 $ 20,438,573 $ 14,261,513 $ 20,147,122 $ 20,500,584 Debt service as a percentage of
noncapital expenditures 0.41% 0.37% 0.42% 0.44% 0.37%
(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 171
172
Fiscal Year
Ended June 30 Sales Taxes
Property
Taxes
Franchise
Taxes
Business
Operation
Taxes
Utility User
Taxes Other Taxes Total
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 2024 31,208,121 18,819,630 1,722,859 699,707 3,836,274 409,272 56,695,863 City of Lakewood
Major Tax Revenue By Sources
Last Ten Fiscal Years
173
2014 2015 2016 2017 2018
Apparel Stores 100,090$ 104,262$ 108,777$ 107,971$ 111,925$ General Merchandise 339,237 335,292 326,877 332,043 319,083 Food Stores 46,198 47,494 47,845 46,073 46,429
Eating and Drinking Places 176,455 189,057 197,497 204,971 208,381 Building Materials 66,480 67,557 73,781 78,690 91,179
Auto Dealers and Supplies 113,843 133,160 154,323 161,696 130,424 Service Stations 123,183 100,673 86,673 93,554 107,480
Other Retail Stores 185,630 190,440 191,145 195,787 196,820 All Other Outlets 188,879 192,439 209,133 220,039 221,375 $ 1,339,995 1,360,374$ 1,396,051$ 1,440,824$ 1,433,096$ Source: HdL Companies
Based on the calendar year; therefore, the most recent year is 2023. (in thousands of dollars)
Fiscal Years
City of Lakewood
Taxable Sales by Category
Last Ten Calendar Years
174
2019 2020 2021 2022 2023
Apparel Stores 111,451$ 69,217$ 120,346$ 105,673$ 97,218$ General Merchandise 324,131 285,728 346,224 381,187 382,858 Food Stores 47,825 54,744 53,932 55,399 55,936
Eating and Drinking Places 215,395 166,013 206,461 228,794 234,169 Building Materials 75,681 79,150 79,143 91,515 89,668
Auto Dealers and Supplies 129,173 128,152 176,857 268,377 250,982 Service Stations 102,185 67,688 98,487 135,060 111,597
Other Retail Stores 194,360 162,233 209,987 202,119 189,181 All Other Outlets 244,317 313,924 335,951 366,192 349,303 $ 1,444,518 1,326,849$ 1,627,388$ 1,834,316$ 1,760,912$ Source: HdL Companies
(in thousands of dollars)
Fiscal Years
City of Lakewood
Taxable Sales by Category (Continued)
Last Ten Calendar Years
175
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
City Sales Tax rate 9.000% 9.000% 8.750% 9.500% 9.500% 9.500% 10.250% 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
176
Fiscal Year Ended
June 30 Secured Nonunitary Unsecured
Taxable Assessed
Value
Total Direct Tax
Rate
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%
2024 12,124,727 1 154,954 12,279,682 0.598%
City of Lakewood
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
(in thousands of dollars)
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.

Source: HdL
177
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
City Direct Rates:

City basic rate 0.0606$ 0.0604$ 0.0603$ 0.0602$ 0.0602$ 0.0601$ 0.0600$ 0.0600$ 0.0599$ 0.0598$ Overlapping Rates:

Los Angeles County - - - - - - - - - -
School Districts 0.3716 0.3101 0.4015 0.5274 0.5233 0.6309 0.5320 0.5346 0.5425 0.5836 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 1.4357$ 1.3706 $ 1.4619 $ 1.5876 $ 1.5870 $ 1.6944 $ 1.5955 $ 1.5981 $ 1.6059 $ 1.6468 $ 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
178
Percent Percent
of Total City of Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Value Value Value
Macerich Lakewood LLC $ 407,338,745 3.33% $ 350,970,412 4.44% B9 MF 12350 DEL AMO LLC 144,776,950 1.18% N/A N/A
Lakewood Manor Apartments LLC 102,077,465 0.83% 85,455,043 1.08% The Regents 64,719,449 0.53% N/A N/A
Lakewood Marketplace LLC 44,286,054 0.36% 37,418,400 0.05% May Company Department Stores 38,848,538 0.32% 30,877,960 0.39% Douglas Park Associates IV LLC 38,286,720 0.31% N/A N/A Carwood Center LLC 36,550 0.30% 31,020,488 0.39%
The 5800 Apartment Homes LLC 35,172,500 0.29% N/A N/A
Regency Center LLC 35,083,977 0.29% 28,555,358 0.36%
Total $ 910,626,948 7.74% $ 564,297,661 6.7%
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 Years Ago
2024 2015
Source: HdL Companies
179
180
Fiscal
Year Taxes Levied Collections
Ended for the Percentage in Subsequent Percentage
June 30 Fiscal Year Amount of Levy Years Amount of Levy 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% 2024 6,597,752 6,280,152 95.19% 317,600 6,597,752 100.00% 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 181
Fiscal Year Ended June
30 Lease Payable SBITA Payable
Total Governmental
Activities
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 460,465 115,020 575,485
2023 264,466 159,252 423,718
2024 60,475 91,337 151,812
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.

Govermmental-Activities
City of Lakewood
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Source: Department of Administrative Services, City of Lakewood 182
Water Revenue
Bonds
Loan Payable to
Water
Replacement
District Lease Payable SBITA Payable
Total Businesstype ActivitiesTotal Primary
Government
Percentage of
Personal Income 1Debt Per
Capita 1
$ 987,401 2,456,517 $ - $ - $ 3,443,918 $ 3,443,918 $ 0.14% 44 - 789,921 1,762,532 - 2,552,453 2,799,261 0.12% 35
- 592,441 10,494,954 11,087,395 - 11,298,639 0.45% 139
- 394,961 10,139,347 10,534,308 - 10,707,925 0.42% 132
- 197,480 9,378,045 - 9,575,525 10,459,336 0.38% 131
- 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 - 561,570 7,521,227 8,096,712 0.23% 93
- 6,106,508 - 414,611 6,521,119 6,944,837 0.20% 87
- 5,506,717 - 257,433 5,764,150 5,915,962 0.17% 74
1 These ratios are calculated using personal income and population for the prior calendar year.

Business-type Activities
City of Lakewood
Ratios of Outstanding Debt by Type (Continued)
Last Ten Fiscal Years
Source: Department of Administrative Services, City of Lakewood 183
184
Total Assessed Valuation $12,279,683,775
Percentage Applicable 1 Outstanding Debt
06/30/24
Estimated Share of
Overlapping Debt
Overlapping Debt:

Metropolitan Water District 0.317 18,210,000 $ 57,726 $ Cerritos Community College District 7.195 433,766,921 31,209,530 Compton Community College District 2.572 151,206,912 3,889,042 Long Beach Community College District 8.261 555,519,244 45,891,445 ABC Unified School District 10.322 116,814,373 12,057,580 Bellflower Unified School District 28.172 69,400,000 19,551,368 Long Beach Unified School District 8.259 1,718,791,399 141,954,982 Paramount Unified School District 9.211 177,304,187 16,331,489 Total overlapping debt $ 270,943,162 3,241,013,036 $
City Direct Debt:

Lease payable 100.000% 151,812 151,812
Total Direct and Overlapping Debt $ 271,094,974
City of Lakewood
Direct and Overlapping Debt
As of June 30, 2024
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 dividing it by each unit's total taxable assessed value.

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 Source: HdL
185
2015 2016 2017 2018 2019
Assessed valuation (In thousands) $ 7,899,494 $ 8,298,427 $ 8,698,092 $ 9,165,328 $ 9,655,309 Debt limit percentage 15% 15% 15% 15% 15%
Debt limit (In thousands) 1,184,924 1,244,764 1,304,714 1,374,799 1,448,296 Total net debt applicable to the limit:

General obligation bonds (In thousands) - - - - -
Legal debt margin (In thousands) $ 1,184,924 $ 1,244,764 $ 1,304,714 $ 1,374,799 $ 1,448,296

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
186
2020 2021 2022 2023 2024
Assessed valuation (In thousands) $ 10,128,915 $ 10,618,540 $ 11,042,873 $ 11,715,062 $ 12,279,682 Debt limit percentage 15% 15% 15% 15% 15%
Debt limit (In thousands) 1,448,296 1,592,781 1,757,259 - 1,841,952 Total net debt applicable to the limit:

General obligation bonds (In thousands) - - - - -
Legal debt margin (In thousands) $ 1,448,296 $ 1,592,781 $ 1,757,259 - $ $ 1,841,952

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
Fiscal Years
City of Lakewood
Legal Debt Margin Information (Continued)
Last Ten Fiscal Years
Source: HdL
187
Fiscal Year Less: Net
Ended Water Operating Available
June 30 Revenue Expenses Revenue Principal Interest Coverage 2015 $ 10,311 $ 2,485 7,826 $ 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
2024 12,992 8,524 4,468 - - 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 188
Fiscal Year
Ended Tax
June 30 Increment Principal Interest Coverage
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 - - - -
2024 - - - -
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.

Tax Allocation Bonds
Debt Service
Source: Department of Administrative Services, City of Lakewood 189
Personal Per
Income Capita
Calendar (thousands Personal Unemployment
Year Population (1) of dollars) (2) Income (2) Rate (3) 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%
2023 80,162 3,511,442 43,804 4.3%
Based on the calendar year; therefore, the most recent year is 2023.

City of Lakewood
Demographic and Economic Statistics
Last Ten Calendar Years
Sources: Hdl/Bureau of Labor Statistics
190
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
City Administration 30 30 30 29 29 29 13 13 16 15
Communications 12 11 7 12
City Clerk 2 2 2 2 2 2 2 2 5 2
Administrative Services 20 21 21 20 20 20 23 22 21 23
Community Development 14 14 14 14 14 13 14 14 15 14
Public Safety 7 7 7 8
Public Works 31 32 32 32 32 32 33 30 33 34
Recreation and Community Services 62 62 62 61 61 58 59 58 60 61 Water Resources 19 19 19 17 17 17 17 15 17 17
Total 178 180 180 175 175 171 180 172 181 186
Note: Communications and Public Safety are new departments in FY 20/21. They split from the Administration department.

City of Lakewood
Full-Time City Employees by Function
Last Ten Fiscal Years
Fiscal Years
Division
Source: Department of Administrative Services, City of Lakewood/Department of Human Resources , City of Lakewood 191
2015 2016 2017 2018 2019
Public works:

Street resurfacing (miles) - 1 - - 3
Recreation and community services:

Number of recreation classes 1,615 1,931 1,711 1,924 1,888 Number of facility rentals 8,259 7,919 5,838 1,577** 1,715** Water
New connections 6 2 7 4 9
Number of consumers 20,489 20,481 20,180 20,196 20,148
Average daily consumption
(thousands of gallons) 6,857 5,887 6,262 6,050 5,954
Community development
Number of building permits issued * 3,457 4,408 4,051 3,986 3,765 *Includes both residential and commercial permits.

Fiscal Years
City of Lakewood
Operating Indicators by Function
Last Ten Fiscal Years
Source: City of Lakewood
192
2020 2021 2022 2023 2024
Public works:

Street resurfacing (miles) - 0.4 9.4 9.0 -
Number of recreation classes 1,355 3,608 1,365 1,397 1,483 Number of facility rentals 1,446** 539*** 1,356 1,402 1,315 Water
New connections 7 8 14 34 16
Number of consumers 20,255 20,159 20,123 20,178 20,185
Average daily consumption
(thousands of gallons) 6,014 5,988 5,986 5,667 5,611
Community development
Number of building permits issued * 3,396 3,960 4,111 4,953 4,065 *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.

Fiscal Years
Recreation and community services:

City of Lakewood
Operating Indicators by Function (Continued)
Last Ten Fiscal Years
Source: City of Lakewood
193
2015 2016 2017 2018 2019
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 189 189 189 189 189
Number of pools 2 2 2 2 2
Water
Water mains (miles) 195 195 195 195 195
Wastewater
Sewers (miles) 167 167 167 167 167
Recreation and community services:

City of Lakewood
Capital Assets Statistics by Function
Last Ten Fiscal Years
Fiscal Years
Source: City of Lakewood
194
2020 2021 2022 2023 2024
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 189 189 189 189 189
Number of pools 2 2 2 2 2
Water
Water mains (miles) 195 195 195 195 195
Wastewater
Sewers (miles) 167 167 167 167 167
Recreation and community services:

City of Lakewood
Capital Assets Statistics by Function (Continued)
Last Ten Fiscal Years
Fiscal Years
Source: City of Lakewood
195
196

CITY OF LAKEWOOD SUCCESSOR AGENCY - HOUSING
FUND SUMMARY 1/16/2025
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. 3901 HOUSING SUCCESSOR AGENCY 4.40

4.40 Council Approval
Date City Manager
Attest
City Clerk Director of Finance and Administrative Services LHSA-1

CITY OF LAKEWOOD SUCCESSOR AGENCY - HOUSING

SUMMARY CHECK REGISTER
CHECK
DATE
CHECK

VENDOR NAME AMOUNT
01/16/2025 FEDERAL EXPRESS CORP 4.40
Totals: 4.40