Lakewood City Council
December 9, 2025

Report run on: 11/20/2025
Total Count: 4,674
253556 2020 - Av. 2024/Nov 18, 2025 Crashes in the City of Lakewood, Los Angeles Co.

Case Listing

Prima'Y. RdLAKEWOOOD BL Distance(ft) I Direction Secondary Rd HEDDA ST NCIC 1900 State Hwy? N Route Pas/mile Prefix Pas/mile Side of Hwy City LAKEWOOD County LOS ANGELES Popula/lon 5 Rpt Dist 1322 Beat 132Z2 T pe Ca/Trans D,st 8.-id , LK7656:rasl1 Date 20250225 Time 1540 Day TUE Primary Cras/1 Factor R-O-WAUTO Violation 21801 A Cras/1 Type BROADSIDE Severity PDQ ti Killed 0 # ln1ured 0 TowAway? N Process Date 20250409 Weather/ CLEAR Weather2 Rdwy Surface DRY Rdw Condi NO UNUSLCND Rdwy Cond2 Spec Cond 0 Hit and Run Motor Veh Involved With OTHER MV Lighting DAYLIGHT Ped Action Cntrl Dev NT PRSIFCTR Loe Type Ramp/Int Latitude Longitude Local Rpl # 925-03337-1322-4 72 Case ID 9796266

PARTY INFO VICTIM INFO
Part Type Age Sex Race SobrielJ'.'.1 Sobriety2 Move Pre Dir SW Ve/1 Chp Veh Make Year Sp Info OAF/ Viol OAF2 Safety Equip Role Ext Of lnJ Age Sex Seat Pos Safety Egwp E'ected Crash
1F DRVR 46 F H HNBD LFTTURN w A 0700 FORD 2013 . 3 N f• I MG 2 DRVR 35 F B HNBD PROC ST s A 0700 JEEP 2017 . 3 N /. ) MG Primary Rdl-605 NIB Distance(ft) 1000 Direction N Secondary Rd CARSON NC/C 9550 State Hwy? Y Route Postmile Prefix Postmile Side of Hwy City LAKEWOOD County LOS ANGELES Population 5 Rpt Dist Beat 652 Type 1 Ca/Trans Dist Badge02420C rash Date 20250226 Time 0450 Day WED Primary Crash Factor IMPROPTURN Violation 22107 Crash Type SIDESWIPE Severity PDO #Killed 0 # Injured 0 TowAway?N Process Date 20250317 Weather/ CLEAR Weather2 Rdwy Surface DRY Rdwy Condi NO UNUSL CND RdwyCond2 SpecCond 0 Hit and Run MISDEMEANOR Motor Veh Involved With OTHERMV Lighting DARK-STLTS Ped Action Cntrl Dev NT PRSIFCTR Loe Type Ramp/Int Latitude 33.83446 Longitude 118.08559 Local Rpt # 9550-2025-01055 Case ID 94599837

PARTY INFO VICTIM INFO
Party Type Age Sex Race Sobriety/ Sobriety2 Move Pre Dir SW Veh Chp Veh Make Year Sp Info OAF1 Viol OAF2 Safety Equip Role Ext Of lnj Age Sex Seat Pos Safety Equip Ejected Crash
1F DRVR 998 . IMP UNK IMP UNK OTHER N . 9900 . . 3 N . BB 2 DRVR 52 F A HNBD PROCST N A 0700 TOYT 2020 . 3 N . MG Primary Rdl-605 NIB Distance(ft) 1100 Direction N Secondary Rd CARSON AVENUE NC/C 9550 State Hwy? Y Route Postmile Prefix Postmile Side of Hwy City LAKEWOOD County LOS ANGELES Population 5 Rpt Dist Beat 652 Type 1 Ca/Trans Dist Badge02420C rash Date 20250226 Time 0451 Day WED Primary Crash Factor IMPROPTURN Violation 22107 Crash Type SIDESWIPE Severity PDQ #Killed 0 # Injured 0 TowAway?N Process Date 20250317 Weather/ CLEAR Weather2 Rdwy Surface DRY Rdwy Condi NO UNUSL CND RdwyCond2 SpecCond 0 Hit and Run MISDEMEANOR Motor Veh Involved With OTHERMV Lighting DARK-STLTS Ped Action Cntrl Dev NT PRSIFCTR Loe Type Ramp/Int Latitude 33.83455 Longitude 118.08565 Local Rpt # 9550-2025-01192 Case ID 94599839

PARTY INFO VICTIM INFO
Party Type Age Sex Race Sobriety/ Sobriety2 Move Pre Dir SW Veh Chp Veh Make Year Sp Info OAF/ Viol OAF2 Safety Equip Role Ext Of lnj Age Sex Seat Pos Safety Equip Ejected Crash
1F DRVR 998 . IMP UNK IMP UNK OTHER N . 9900 . . 4 N . BB 2 DRVR 52 F A HNBD PROCST N A 0700 TOYT 2020 . 3 I . MG

Report run on: 11/20/2025
Total Count: 4,674
253556 2020 - Av. 2024/Nov 18, 2025 Crashes in the City of Lakewood, Los Angeles Co.

Case Listing

Primary RdLAKEWOOD BL Distance(ft) 150 Direction S Secondary Rd HEDDA ST NCIC 1900 State Hwy? N Route Postmile Prefix Pas/mile Side of Hwy City LAKEWOOD County LOS ANGELES Popula/lon 5 Rpt Dist 1322 Beat 132T1 Type Ca/Trans D,st 811d, 67096J;rash Date 20250308 Time 0054 Day SAT Pmnary Crash Factor IMPROPTURN Violation 22107 Crasl1 Type SIDESWIPE Severity PDQ ti Killed 0 # Injured 0 TowAway? N Process Date 20250402 Weather/ CLEAR Weather2 Rdwy Surface DRY Rdw Condi NO UNUSLCND Rdwy Cond2 Spec Cond 0 Hit and Run MISDEMEANOR Motor Veh Involved With FIXED OBJ Lighting DARK-ST LTS Ped Action Cntrl Dev Loe Type Ramp' lnt Latitude Lon itude Local Rpl # 925-04004-1322-250 Case ID 9790749

PARTY INFO VICTIM INFO
Party Type Age Sex Race Sobnety_ 1 Sobnety2 Move Pre Dir SW Ve/I Chp Veh Make Year Sp Info OAF/ Vio~ OAF2 Safety Equip Role Ext Of lnJ A e Sex Seat Pos Safety Egwp E'ecteJ Crash
1F DRVR 998 - IMP UNK IMP UNK PROC ST N . 9900 - - - N - B - Primary, RdLAKEWOOD BL Distance(ft) 150 Direction S Secondary Rd HEDDA ST NCIC 1900 State Hwy? N Route Postmile Prefix Pas/mile Side of Hwy City LAKEWOOD County LOS ANGELES Population 5 Rpt Dist 1322 Beat 132T1 Type Ca/Trans Dist b ,a,, 670961;rash Date 20250308 Time 0100 Day SAT Primary Crash Factor NOT DRIVER Viola/Ion Crash Type HEAD-ON Severity PDQ # Killed 0 # Injured 0 TowAway?Y Process Date 20250402 Weather/ CLEAR Weather2 Rdwy Surface DRY Rdwy Condi NO UNUSL CND Rdwy Cond2 Spec Cond 0 Hit and Run Motor Veh Involved With FIXED OBJ L1ght1ng DARK-ST LTS Ped Action Cntrl Dev NT PRSIFCTR Loe Type Ramp/Inf Latitude Longilude Local R l ti 925-04005-1322-472 Case ID 9790777

PARTY INFO VICTIM INFO
Party Type Age Sex Race Sobnety 1 Sobriety2 Move Pre Dif SW Veh Chp Veh Make Year Sp Info OAF/ Viol OAF2 Safely Equip Role Ext Of lnJ Age Sex Seat Pas Safety Eqwp E ected Crash
1 DRVR 18 M B HNBD PROC ST N A 0100 . 2015 . 3 N . MG
Primary RdNIXON ST Distance(ft) 282 Direction W Secondary Rd SHADWAY RD NCIC 1900 State Hwy? N Route Postmile Prefix Postmile Side of Hwy City LAKEWOOD County LOS ANGELES Population 5 Rpt Dist 1325 Beat 132Tt Type Ca/Trans Dist Badge64831 S::rash Date 20250308 Time 0341 Day SAT Primary Crash Factor IMPROPTURN Violation 22107 Crash Type SIDESWIPE Severity PDO #Killed 0 # Injured 0 TowAway?N Process Date 20250409 Weather/ CLEAR Weather2 Rdwy Surface DRY Rdwy Condi NO UNUSL CND RdwyCond2 SpecCond 0 Hit and Run MISDEMEANOR Motor Veh Involved With PKDMV Lighting DARK-STLTS Ped Action Cntrl Dev FNCTNG Loe Type Ramp/Int Latitude 33.84369 Longitude 118.10020 Local Rpt # 925040151325250 Case ID 9799907

PARTY INFO VICTIM INFO
Party Type Age Sex Race Sobriety/ Sobriety2 Move Pre Dir SW Veh Chp Veh Make Year Sp Info OAF/ Viol OAF2 Safety Equi;; Role Ext Of lnj Age Sex Seat Pos Safety Equip Ejected Crash
1F DRVR 998 . IMP UNK IMP UNK PROC ST w A 0100 - . . N - - B 2 PRKD 998 . PARKED w A 0100 - 2022 . 3 N - -.

Report run on: 11/20/2025
Total Count: 4,674
253556 2020 - Av. 2024/Nov 18, 2025 Crashes in the City of Lakewood, Los Angeles Co.

Case Listing

Primary RdDEL AMO BL Distance(ft) 226 Direction W Secondary Rd PARAMOUNT BL NCIC 1900 State Hwy? N Route Postmile Prefix Postmile Side of Hwy City LAKEWOOD County LOS ANGELES Population 5 Rpt Dist 1320 8eat 132 Type Ca/Trans Dist 8adge65818-Crash Date 20250511 Time 1412 Day SUN Primary Crash Factor TOO CLOSE Violation 21703 Crash Type REAR END Severity INJURY #Killed 0 # Injured 1 TowAway?N Process Date 20250814 Weather1 CLEAR Weather2 Rdwy Surface DRY Rdwy Cond1 NO UNUSL CND RdwyCond2 SpecCond 0 Hit and Run Motor Veh Involved With OTHERMV Lighting DAYLIGHT Ped Action Cntrl Dev FNCTNG Loe Type Ramp/Int Latitude Longitude Local Rpt# 925-07950-1320-471 Case ID 9871310

PARTY INFO VICTIM INFO
Party Type Age Sex Race Sobriety1 Sobriety2 Move Pre Dir SW Veh Chp Veh Make Year Sp Info OAF1 Viol OAF2 Safety Equip Role Ext Of lnj Age Sex SeatPos Safety Equip Ejected Crash
1F DRVR 19 F H HNBD PROCST E A 0100 FORD 2016 - - N - MB 2 DRVR 43 M H HNBD STOPPED E A 0100 - 2019 - - N - MB PASS 50 F 3 MB 0 PASS MINOR 18 F 6 MB 0
Pr,ma RdLAKEWOOD BL D1stance(ft) I Direction Secondary Rd MICHELSON ST NCIC 1900 StateH ? N Route Pas/mile Prefix Pas/mile Side of Hwy_ City LAKEWOOD County LOS ANGELES Population 5 Rpl Dist 1320 Beat 132T1 Type Ca/Trans Dist fl~d ,. 63862B:;rasl1 Date 20250511 Time 1720 Day SUN Primary Crash Factor R-O-WAUTO Viola/Ion 21801 Crash Type HEAD-ON Severity INJURY # Ki/lea 0 # Injured 2 TowAway?Y Process Date 20250610 Weather1 CLEAR Weather2 Rdwy Surface DRY Rdwy Condi NO UNUSL CND Rdwy Cond2 Spec Cond 0 Hit and Run Mntor VAh Involved With OTHER MV I ighr1'!9_ DAYLIGHT PArl Acr,nn (;nfrl nAv NT PRSIFCTR I oc Tjtpe Ramp/Int Latitude Longitude Local Rpt # 925-07957-1320-471 Case ID 9815744

PARTY INFO VICTIM INFO
Party Type Age Sex Race Sobriety) Sobnety_2 Move Pre Dff SW Veh Chp Vel1 Make Year Sp Info OAF/ Viol OAF2 Safety Eqwp Role Ext Of lnJ Age Sex Seat Pas Safety Eqwp E1ected Crash
1F DRVR 21 M B HNBD LFTTURN N A 0100 - 2015 - 3 N f•I LG PASS MINOR 23 M 3 LG 0 2 DRVR 53 M H HNBD PROC ST s A 0100 - 2024 - 3 N r.1 LG DRVR MINOR 53 M 1 LG 0 Primary Rd ASHWORTH ST Distance(ft) 333 Direction E Secondary Rd CLARK AV NC/C 1900 State Hwy? N Route Postmi/e Prefix Postmi/e Side of Hwy City LAKEWOOD County LOS ANGELES Population 5 Rpt Dist 1322 8ea/ 132T2 Type Ca/Trans Dist Badge 65737'£rash Date 20250511 Time 2118 Day SUN Primary Crash Factor UNSAFE SPEED Viola/Ion 22350 Crash Type BROADSIDE Severity PDQ #Killed 0 # Injured 0 TowAway?Y Process Date 20250603 Weather/ CLEAR Weather2 Rdwy Surface DRY Rdwy Condi NO UNUSL CND RdwyCond2 SpecCond 0 Hit and Run Motor Veh Involved With OTHER MV Lighting DARK- ST LTS Ped Action Cntrl Dev NT PRS/FCTR Loe Type Ramp/Int Latitude Longitude Local Rpt# 925-07964-1322-472 Case ID 9815508

PARTY INFO VICTIM INFO
Party Type Age Sex Race Sobriety1 Sobriety2 Move Pre Dir SW Veh Chp Veh Make Year Sp Info OAF1 Viol OAF2 Safety Equip Role Ext Of lnj Age Sex Seat Pas Safety Equip Ejected Crash
1F DRVR 67 F w HNBD PROCST w A 0700 FORD 2002 - 3 N - MG 2 DRVR 35 M H HNBD SLOWING w A 0700 - 2011 - 3 N - MG

Report run on: 11/20/2025
Total Count: 4,674
253556 2020 - Av. 2024/Nov 18, 2025 Crashes in the City of Lakewood, Los Angeles Co.

Case Listing

Primary RdLAKEWOOD BL Distance(ft) 116 Direction N Seconda1y Rdi HEDDA ST NCIC 1900 State Hw ? N Route Postmile Prefix Postmile Side of Hw City LAKEWOOD County LOS ANGELES Population 5 Rpt Dist 1322 Beat 132T1 Type Ca/Trans Dist f 111,, 62353s::;rash Date 20250527 Time 0813 Day TUE Primary Crash Factor LANE CHANGE Violation 21658A Crash Type HEAD-ON Severity INJURY # Killed 0 # Injured 1 TowAway?Y Process Date 20250708 Weather/ CLEAR Weather2 Rdwr, Surface DRY Rdw Condi NO UNUSL CND Rdw Cond2 Spec Con 0 Hiland Run Motor Veh Involved With FIXED OBJ Li htin DAYLIGHT Ped Action Cntrl Dev NT PRS/FCTR Loe T e Ramp/Int Latitude Longitude Local R tit 925088841322471 Case ID 9829625

PARTY INFO VICTIM INFO
Pa,ry Type Age Sex Race Sobriety 1 Sobriety2 Move Pre Dir SW Veh Chp Veh Make Year Sp Info OAF/ Vio l OAF2 Safety Eqwp Role Ext Of In) Age Sex Sear Pos Safety Equip Eected Crash
1F DRVR 73 M H FATG PROC ST N D 2200 - 2003 - 3 N - LG DRVR POSSIBLE 73 M 1 LG 0 Primary Rd209TH ST Distance(ft) 121 Direction W Secondary Rd THORNLAKE AV NC/C 1900 State Hwy? N Route Postmile Prefix Postmile Side of Hwy City LAKEWOOD County LOS ANGELES Population 5 Rpt Dist 1328 Beat 132T2 Type Ca/Trans Dist Badge60827!Crash Date 20250528 Time 1951 Day WED Primary Crash Factor DRVR ALCIDRG Violation 23152A Crash Type HEAD-ON Severity PDO #Killed 0 # Injured 0 TowAway?Y Process Date 20250711 Weather/ CLEAR Weather2 Rdwy Surface DRY Rdwy Condi NO UNUSL CND RdwyCond2 SpecCond 0 Hit and Run Motor Veh Involved With PKDMV Lighting DUSK/DAWN Ped Action Cntrl Dev NT PRS/FCTR Loe Type Ramp/Int Latitude 33.84007 Longitude 118.07152 Local Rpt # 925-08998-1328-242 Case ID 9826580

PARTY INFO VICTIM INFO
Party Type Age Sex Race Sobriety/ Sobriety2 Move Pre Dir SW Veh Chp Veh Make Year Sp Info OAF1 Viol OAF2 Safety Equip Role Ext Of lnj Age Sex Seat Pos Safety Equip Ejected Crash
1F DRVR 33 M H HBD-UI PROCST w A 0700 JEEP 2013 - 3 A22350 - MB 2 PRKD 998 - PARKED E D 2200 - 1997 - - N - --
Primary RdDEL AMO BL Distance(ft) 140 Direction E Secondary Rd PARAMOUNT BL NCIC 1900 State Hwy? N Route Postmile Prefix Postmile Side of Hwy City LAKEWOOD County LOS ANGELES Population 5 Rpt Dist 1320 Beat 132T2 Type Ca/Trans Dist Badge60827!Crash Date 20250529 Time 1530 Day THU Primary Crash Factor UNSAFE SPEED Violation 22350 Crash Type REAR END Severity INJURY #Killed 0 # Injured 1 TowAway?N Process Date 20250702 Weather/ CLEAR Weather2 Rdwy Surface DRY Rdwy Condi NO UNUSL CND RdwyCond2 SpecCond 0 Hit and Run Motor Veh Involved With OTHERMV Lighting DAYLIGHT Ped Action Cntrl Dev FNCTNG Loe Type Ramp/Int Latitude 33.84712 Longitude 118.15930 Local Rpt # 925-09044-1320-250 Case ID 9826982

PARTY INFO VICTIM INFO
Party Type Age Sex Race Sobriety/ Sobriety2 Move Pre Dir SW Veh Chp Veh Make Year Sp Info OAF/ Viol OAF2 Safety Equip Role Ext Of lnj Age Sex SeatPos Safety Equip Ejected Crash
1F DRVR 998 M B IMP UNK IMP UNK PROC ST w A 0100 - 2012 - 3 N - . B 2 DRVR 47 M B HNBD SLOWING w A 0100 FIAT 2013 - 3 N - MG PASS POSSIBLE 57 F 3 MG 0

Report run on: 11/20/2025
Total Count: 4,674
253556 2020 - Av. 2024/Nov 18, 2025 Crashes in the City of Lakewood, Los Angeles Co.

Case Listing

Primary RdLAKEWOOD BL Distance(ft) I Direction Secondary Rd HEDDA ST NCIC 1900 State Hwy? N Route Postmile Prefix Poslmile Side of Hwy Ci(y LAKEWOOD County LOS ANGELES Population 5 Rpt Dist 1322 Beat 132T1 Type Ca/Trans Dist c, ,d, 65818}'.;ras/1 Date 20250626 Time 1510 Day THU Pomar Cras/1 Factor R-O-WAUTO Violation 21804A Cras/1 Type BROADSIDE Severity INJURY II Killed 0 II Jn1ured 1 TowAway? N Process Date 20250925 Weather/ CLEAR Weather2 Rdwy Surface DRY Rdw Condi NO UNUSLCND Rdwy Cond2 Spec Cond 0 Hit and Run Motor Veh Involved With OTHERMV Lighting DAYLIGHT Ped Action Cntrl Dev NT PRS/FCTR Loe Type Rampt/n/ Latitude Longitude Local Rpt # 925-10730-1322-4 71 Case 10 9873541

PARTY INFO VICTIM INFO
Part Type Age Sex Race Sobnet).'.1 Sobriety2 Move Pre Dir SW Ve/1 Chp Veh Make Year Sp Info OAF/ Viol OAF2 Safety Equip Role Ext Of lnJ Age Sex Seat Pos Safety Equip Ejected Crash
1F DRVR 23 F H HNBD PROC ST w D 2200 . 2019 . I• N f• I MB 2 DRVR 85 M A HNBD PROC ST s A 0100 . 2017 . r. N /. ) MB DRVR POSSIBLE 85 . . MB 0 Primary RdCARSON ST Distance(ft) I Direction Secondary Rd RT 605 NC/C 1900 State Hwy? N Route Postmile Prefix Postmile Side of Hwy City LAKEWOOD County LOS ANGELES Population 5 Rpt Dist 1327 8eat 132T2 Type Ca/Trans Dist Badge60827!Crash Date 20250626 Time 1529 Day THU Primary Crash Factor STOP SGNISIG Violation 21453A Crash Type BROADSIDE Severity PDQ #Killed 0 # Injured 0 TowAway?Y Process Date 20250806 Weather/ CLEAR Weather2 Rdwy Surface DRY Rdwy Condi NO UNUSL CND RdwyCond2 SpecCond 0 Hit and Run Motor Veh Involved With OTHERMV Lighting DAYLIGHT Ped Action Cntrl Dev FNCTNG Loe Type Ramp/Int Latitude 33.83149 Longitude 118.08588 Local Rpt# 925-10734-1327-472 Case ID 9814209

PARTY INFO VICTIM INFO
Party Type Age Sex Race Sobriety/ Sobriety2 Move Pre Dir SW Veh Chp Veh Make Year Sp Info OAF1 Viol OAF2 Safety Equip Role Ext Of lnj Age Sex Seat Pos Safety Equip Ejected Crash
1 DRVR 69 M A HNBD PROCST w A 0100 . 2002 . 3 N . MG
2 DRVR 40 M w HNBD PROCST s A 0100 . 2019 . 3 N . MG
Primary RdWOODRUFF AV Distance(ft) 40 Direction s Secondary Rd ASHWORTH ST NCIC 1900 State Hwy? N Route Postmile Prefix Postmile Side of Hwy City LAKEWOOD County LOS ANGELES Population 5 Rpt Dist 1322 Beat 13224 Type Ca/Trans Dist BadgePSOHl£rash Date 20250626 Time 1600 Day THU Primary Crash Factor IMPROPTURN Violation 22107 Crash Type HEAD-ON Severity PDQ #Killed I)'-• # Injured 0 TowAway?N Process Date 20250717 Weather/ CLEAR Weather2 Rdwy Surface DRY Rdwy Condi NO UNUSL CND RdwyCond2 SpecCond 0 Hit and Run Motor Veh Involved With OTHERMV Lighting DAYLIGHT Ped Action Cntrl Dev NT PRS/FCTR Loe Type Ramp/Int Latitude Longitude Local Rpt# 925107351322472 Case ID 9813032

PARTY INFO VICTIM INFO
Party Type Age Sex Race Sobriety/ Sobriety2 Move Pre Dir SW Veh Chp Veh Make Year Sp Info OAF/ Viol OAF2 Safety Equip Role Ext Of lnj Age Sex Seat Pos Safety Equip Ejected Crash
1F DRVR 32 F B HNBD U-TURN s A 0100 FORD 2016 . 3 N . MG 2 DRVR 30 F H HNBD PROCST s A 0700 . 2021 . 3 N . MG

Report run on: 11/20/2025
Total Count: 4,674
253556 2020 - Av. 2024/Nov 18, 2025 Crashes in the City of Lakewood, Los Angeles Co.

Case Listing

Primary RdLAKEWOOD BL Distance(ft) I Direction Secondary Rd HEDDA ST NCIC 1900 State Hwy? N Route Postmile Prefix Pas/mile Side of Hwy Ci(y LAKEWOOD County LOS ANGELES Popula/lon 5 Rpt Dist 1322 Beat 132Z3 T pe Ca/Trans D,st Bids, LK806fi;rasl1 Date 20250820 Time 1600 Day WED Pomar Cras/1 Factor R-O-WAUTO Violation 21801 A Cras/1 Type BROADSIDE Severity PDQ # Killed 0 # Injured 0 TowAway? N Process Date 20250917 Weather/ CLEAR Weather2 Rdwy Surface DRY Rdw Condi NO UNUSLCND Rdwy Cond2 Spec Cond 0 Hit and Run Motor Veh Involved With OTHER MV Lighting DAYLIGHT Ped Action Cntrl Dev FNCTNG Loe Type Ramptlnt Latitude 33.86411 Lon itude 118.14265 Local Apt# 925-14071-1322-4 72 Case ID 9878245

PARTY INFO VICTIM INFO
Party T pe Age Sex Race Sobriety 1 Sobnety2 Move Pre Dir SW Ve/1 Chp Veh Make Year Sp Info OAF1 Viol OAF2 Safety Equip Role Ext Of lnJ Age Sex Seat Pos Safety Equip Ejected Crash
1F DRVR 63 M w HNBD LFTTURN N A 0100 . 2016 . 3 N 1• 1 LG 2 DRVR 24 F w HNBD PROC ST s A 0700 . 2017 . 3 N i.:J MG PASS 10 F 6 MG IPASS 7 M 4 MG ' .

Primary RdLAKEWOOD BL Distance(ft) 95 Direction N Secondary Rd DEL AMO BL NC/C 1900 State Hwy? N Route Postmile Prefix Pas/mile Side of Hwy City LAKEWOOD County LOS ANGELES Population 5 Rpt Dist 1320 8eat 132T1 Type Ca/Trans Dist Badge64631 &;rash Date 20250821 Time 0820 Day THU Primary Crash Factor IMPROPTURN Violation 22107 Crash Type SIDESWIPE Severity PDO #Killed 0 # Injured 0 TowAway? N Process Date 20250925 Weather/ CLEAR Weather2 Rdwy Surface DRY Rdwy Condi NO UNUSL CND RdwyCond2 SpecCond 0 Hit and Run Motor Veh Involved With OTHERMV Lighting DAYLIGHT Ped Action Cntrl Dev FNCTNG Loe Type Ramp/Int Latitude Longitude Local Rpt# 925-14116-1320-472 Case ID 9876926

PARTY INFO VICTIM INFO
Party Type Age Sex Race Sobriety/ Sobriety2 Move Pre Dir SW Veh Chp Veh Make Year Sp Info OAF1 Viol OAF2 Safety Equip Role Ext Of lnj Age Sex Seat Pos Safety Equip Ejected Crash
1F DRVR 25 F H HNBD CHANG LN s A 0100 - 2005 - 3 N - MG 2 DRVR 29 F H HNBD PROCST s A 0700 - 2019 - 3 N - MG
Primary RdCLARK AV Distance(ft) 32 Direction s Secondary Rd MICHELSON ST NCIC 1900 State Hwy? N Route Postmile Prefix Postmile Side of Hwy City LAKEWOOD County LOS ANGELES Population 5 Rpt Dist 1321 8eat 132T1 Type Ca/Trans Dist Badge64631 &;rash Date 20250821 Time 1240 Day THU Primary Crash Factor IMPROPTURN Violation 22107 Crash Type SIDESWIPE Severity INJURY #Killed 0 # Injured 2 TowAway?N Process Date 20250917 Weather/ CLEAR Weather2 Rdwy Surface DRY Rdwy Condi NO UNUSL CND RdwyCond2 SpecCond 0 Hit and Run Motor Veh Involved With OTHERMV Lighting DAYLIGHT Ped Action Cntrl Dev FNCTNG Loe Type Ramp/Int Latitude 33.85722 Longitude 118.13373 Local Rpt # 925-14136-1321-471 Case ID 9876151

PARTY INFO VICTIM INFO
Party Type Age Sex Race Sobriety/ Sobriety2 Move Pre Dir SW Veh Chp Veh Make Year Sp Info OAF/ Viol OAF2 Safety Equip Role Ext Of lnj Age Sex SeatPos Safety Equip Ejected Crash
1F DRVR 18 M B HNBD CHANG LN N A 0100 - 2017 - 3 N - MG PASS 18 M 3 MG 0 2 DRVR 52 M w HNBD PROCST N A 0100 - 2004 - 3 N - M- DRVR POSSIBLE 52 M 1 MG 0 PASS POSSIBLE 76 M 3 MG 0

- - ---- -- ------- ----- - -- ---
TO: The Honorable Mayor and Members of the Council

COUNCIL AGENDA
December 9, 2025
SUBJECT: Annual Comprehensive Financial Report (ACFR) - Year Ended June 30, 2025 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, audlit 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 2024-25 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, staff's 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, 2025
December 9, 2025
Page2
• 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 three major funds, the General 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 3 1) increased by $20,184,844 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 $2,939,779 (Page 37). Retained earnings increases are necessary to fund future-year capital improvements.

Projects on the horizon include water main replacements, well quipping and drilling, 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 infonnation without regard to the anticipated use of reserves (i.e., capital improvement projects - CIPs) or departmental expenses. On the revenue side, accounting principles require investments to be adjusted to year-end market value on the City's books each year even though they are held through maturity. The adjustment results in an unrealized "paper" gain or loss that is recorded.

Comparing the City's General Fund revenues versus expenditures results in a "surplus" of $16,588,303 (Page 101) at year-end. As required by GASB, this includes $10,648,964 in restricted funds obtained through a lease purchase agreement for the City's comprehensive HVAC/RooflElectrical CIP. When excluding this the revised surplus is $5,939,339, still greater than the amount previously anticipated surplus (approximately $2.4 million) in the City's budget.

It also remains in line with the City's long-term financial plan developed in early 2020. 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- Council Agenda- ACFR June 30, 2025
December 9, 2025
Page3
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 $742,078 (Page 101). There are several components contributing to this amount, with the largest one being Investment Income exceeding the budget by $979,622 as interest rates and commensurate earnings were greater than anticipated. Additionally, there were several development-related revenue sources that performed better than anticipated. Licenses and Permits revenues exceeded budget projections by $394,407. Building & Safety Permit revenues surpassed budget estimates by $313,666. Current Service Charges and Plan Check Fee revenues exceeded budget projections by $146,893 and $89,776, respectively.

The positive variances above were somewhat offset by several tax revenues falling short of budgeted amounts by $802,253. The largest components were the City's sales tax revenues.

Traditional sales tax revenues (also known as Bradley-Bums) were $384,023 or 2.18% lower than their budgeted amount. Locally, "brick and mortar" sales remained relatively strong, but reflect broader consumer trends. Measure L sales tax revenues (the City's local transaction sales tax measure) generated $254,332 or 1.86% less than budgeted. While in its fifth year, this is the first year Measure L revenues fell short of its forecasted amount.

Expenditures
The ACFR presents expenditure act1v1t1es 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 $33,699,958. The vast majority of this amount ($28,841,087) represents funds that have been already budgeted for specific CIPs (typically completed over multiple years) but have not been spent. Much of the $28,841,087 above is specifically allocated to the Culture and Leisure function (which includes park facility CIPs), with realized expenditures totaling only $3,937,653.

The remaining portion of expenditure savings ($4,858,871) are due to operational activities.

There were significant savings ($1,294,579) in labor costs, reflective of position vacancies (both full and part-time) throughout the organization as the City experienced the ongoing effects of a tight labor market. Organizationally, General Fund contractual costs were lower ($2,287,681) as staff shifted eligible expenditures away from the General Fund and utilized available grant monies instead. There were also machinery/vehicle/equipment items that were ordered and subsequently backordered at the end of the fiscal year for a sum of$1,284,323.

Fund Balance
As previously mentioned, General Fund revenues (including transfers in) exceeded expenditures (including capital projects) by $16,588,303 (without factoring in anticipated use of reserves). In general terms, the City has very sound "rainy day" reserves. The fund balance is presented Council Agenda- ACFR June 30, 2025
December 9, 2025
Page4
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 $340,783 from the prior year. The Successor Agency loan receivable is the major element of this component and of the year-over-year change.

The Restricted component is a newly added component to the City's ACFR. This is to account for the net fund resources subject to externally enforceable legal restrictions. At the end of the fiscal year, the City had $10,648,964 attributed to the HVAC/roofi'electrical project.

The Committed component includes reserves for City obligations, current capital projects and economic uncertainties. This component increased by $13,086,701 from the prior year. It was primarily due to the increase in funds formally committed to specific capital projects.

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. Overall, this component decreased by $5,542,056 due to the majority portion of the American Rescue Plan Act of2021 (ARP A) exchange ($4,697,162) being transferred out of the Assigned and into to the Committed component after City Council action, leaving $2,196,460 in the Assigned component.

The Unassigned component, at $670,501, is available to be allocated as needed.

GFOA Financial Reporting Award- Fiscal Year ending June 30, 2024 Recently, the GFOA awarded the Certificate of Achievement for Excellence in Financial Reporting to the City of Lakewood for the prior year FY 2023-24 ACFR. This is the 43nl 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.

RECOMMENDATION
Staffreco=ends the City Council:
• Receive and file the City of Lakewood Annual Comprehensive Financial Report (ACFR) for the Fiscal Year ended June 30, 2025.
• Accept the GFOA Certificate of Achievement for Excellence in Financial Reporting award for the Fiscal Year ended June 30, 2024.
~J:( ··Ji,
Jose Go~ez
Director of Finance & Administrative Services
/'!////(1
Thaddeus McCormack
City Manager
Attached: City of Lakewood ACFR for the Fiscal Year ended June 30, 2025

CITY OF LAKEWOOD, CALIFORNIA

ANNUAL COMPREHENSIVE

FINANCIAL REPORT

WITH REPORTS OF INDEPENDENT

CERTIFIED PUBLIC ACCOUNTANTS

FOR THE YEAR ENDED
JUNE 30, 2025
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, 2025
Table of Contents
INTRODUCTORY SECTION (Unaudited)
Page
Letter of Transmittal ....................................................................................................................................................... i Principal Officials ......................................................................................................................................................... xi Organizational Chart.. ................................................................................................................................................. xii GFOA Certificate of Achievement for Excellence in Financial Reporting ............................................................... xiii

FINANCIAL SECTION
Independent Auditor's Report on the Financial Statements ................................................................................... I 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 Funds 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 Govenunental 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 .......................................................................................................................... 3 8 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):

Notes to Budgetary Comparison Schedules ........................................................................................................ 99 Budgetary Comparison Schedules:

General Fund ................................................................................................................................................ IO I City of Lakewood
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Table of Contents (Continued)
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 Benefltv Liability and Related Ratios:

Other Postemployment Benefits Plan ........................................................................................................... 110 Schedule of Contributions:

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

Housing Adm in 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 ............................................................................................................. 13 l 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 JAG Grant Special Revenue Fund ......................................................................................................... 135 LA County Measure M Special Revenue Fund ..................................................................................... 136 Measure R Special Revenue Fund ......................................................................................................... 137 Measure W Special Revenue Fund ........................................................................................................ 13 8 Miscellaneous Special Revenue Fund .................................................................................................... 139 Open Space Special Revenue Fund ........................................................................................................ 140 Park Dedication Special Revenue Fund ................................................................................................. 141 Prop A Recreation Special Revenue Fund ............................................................................................. 142 Prop A Transit Special Revenue Fund ................................................................................................... 143 Prop A Incentive NTD Fund .................................................................................................................. 144 Prop C Transportation Special Revenue Fund ....................................................................................... 145 Permanent Local Housing Allocation Program ("PLHA") Grant Special Revenue Fund ..................... 146 Road Maintenance and Rehab Account Special Revenue Fund ............................................................ 14 7 Sewer Reconstruction Special Revenue Fund ........................................................................................ 148 State COPS Grant Special Revenue Fund .............................................................................................. 149 State Gasoline Tax Special Revenue Fund ............................................................................................ 150 TDA Article Grant Special Revenue Fund ............................................................................................ 151 Used Oil Grant Special Revenue Fund .................................................................................................. 152 City of Lakewood
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Table of Contents (Continued)
STATISTICAL SECTION (Unaudited)
Page
Description of Statistical Section Contents ............................................................................................................... 155 Financial Trends:

Net Position by Component - Last Ten Fiscal Years ......................................................................................... I 56 Changes in Net Position- Expenses and Program Revenues -Last Ten Fiscal Years ...................................... 158 Fund Balances of Governmental Funds - Last Ten Fiscal Years ....................................................................... I 62 Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years .................................................... 164 Revenue Capacity:

Major Tax Revenue By Sources - Last Ten Fiscal Years ................................................................................... I 67 Taxable Sales by Category-Last Ten Calendar Years ...................................................................................... 168 City Sales Tax Rates - Last Ten Fiscal Years .................................................................................................... I 70 Assessed Value and Estimated Actual Value of Taxable Property- Last Ten Fiscal Years .............................. 171 Direct and Overlapping Property Tax Rates -Last Ten Fiscal Years ................................................................ I 72 Principal Property Taxpayers - Current Year and Nine Years Ago ................................................................... I 73 Property Tax Levies and Collections - Last Ten Fiscal Years ........................................................................... I 75 Debt Capacity:

Ratios of Outstanding Debt by Type - Last Ten Fiscal Years ............................................................................ I 76 Direct and Overlapping Debt .............................................................................................................................. 179 Legal Debt Margin Information - Last Ten Fiscal Years ................................................................................... 180 Pledged-Revenue Coverage-Last Ten Fiscal Years ................... : ..................................................................... 182 Demographic and Economic Information:

Demographic and Economic Statistics - Last Ten Calendar Years .................................................................... I 84 Operating Information:

Full-Time City Employees by Function-Last Ten Fiscal Years ....................................................................... 185 Operating Indicators by Function - Last Ten Fiscal Years ................................................................................. I 86 Capital Assets Statistics by Function - Last Ten Fiscal Years ........................................................................... 188 Independent Auditor's Report ou Internal Control Over Financial Reporting aud ou Compliance and Other Matters Based ou an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ..................................................................................... 191

J d l \\ 1111d
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December 9, 2025
The Honorable Mayor and City Council
City of Lakewood, California:

C ""an,11 , ( h ••c
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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 all general-purpose local governments to publish, within six months of the close of the fiscal year a complete set of financial statements presented in conformity with accounting principles generally accepted 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 financia l report of the City for the fiscal year ended June 30, 2025.

This report consists of management's representations concerning the City's finances. Accordingly, management assumes full responsibility for the completeness and reliability of all infomrntion presented.

To provide a reasonable basis for these representations, City management has established a comprehensive internal control framework designed to both safeguard the City's assets from loss, theft, or misuse and to ensure the preparation of reliable financ ial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the City's internal control structure provides reasonable rather than absolute assurance that the fmancial statements are free from material misstatement. As management, we affirm that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects.

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 for the fiscal year ended June 30, 2025 are free of material misstatement. The independent audit included 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 presentation of the financial statements. Based on their audit, the independent auditors concluded that there was a reasonable basis for issuing unmodified opinions stating that the City's financial statements for the fiscal year ended June 30, 2025, are fairly presented in confonnity with GAAP. The independent auditor's report appears as the first component of the Financial Section of this report.

GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements, in the fom1 of a Management's Discussion and Analysis (MD&A). The letter of transmittal is intended to complement the MD&A and should be read in conjunction with it. The City of Lakewood's MD&A immediately follows the independent auditor's repo1t.

PROFILE OF THE GOVERNMENT
The City, incorporated in I 954, is located in Southern Los Angeles County, 20 miles south of the City of Los Angeles. Lakewood benefits from the diversified economy of Southern California and is primarily a bedroom community providing regional housing in Southern California. The City encompasses 9.5 square miles and serves a population of 82,713 according to the 2020 census.

Lal<ewood
Annual Comprehensive Financial Report
December 9, 2025

Since incorporation, the City has operated under the counc il-manager form of government and is recognized as the nation's first "contract city." John Stanford Todd's contributions to Lakewood and municipal governance are honored with t\¥0 memorial highway signs along the 605 freeway at the City's northern and southern boundaries. Policy-making and legislative authority are vested in a five-member City Council res ponsible for enacting ordinances, adopting the budget, establishing committees and appointing both the City Manager and City Attorney. The City Manager implements Council policies, oversees daily municipal operations, and appoints department heads. Counc il members are e lected on a non-partisan by-district basis to four-year overlapp ing terms, and the mayor is selected annually by the Counci l from among its members and generally serves in that capacity for a one-year term.

The City provides a full array of municipal services, inc luding police protection, solid waste collection, street and infrastructure maintenance, planning and zon ing, water utility services, recreation programs, cultural events, housing programs, and general administrative functions. As a "contract city," many of these services are delivered through agreements with other public agencies or private providers, while others are performed directly by City staff. Library, fire protection, and sewer services are provided by Los Angeles County special districts. The County, the State of California, and local school districts are excluded from this report because they do not meet the established criteria for inclusion.

The City's budget serves as the foundation for its financial planning and control. Each department submits budget requests to the City Manager for the fiscal year beg inning July 1. Using these requests, along with City Council priorities, the City Manager prepares a proposed budget for Council rev iew prior to June 30.

The Council must ho ld a public hearing and adopt the fi nal budget no later than June 30, coinc iding with the end of the fiscal year.

The appropriated budget is organized by fund, function (e.g., solid waste collection), and department (e.g., public works). The City Manager may authorize transfers of appropriations within or bet\1/een departments within a fund. Budget-to-actua l compa risons are included in this report for each governmental fund with an adopted annual budget. For the General Fund, this schedule is included in the required supplementary information section; for other governmental funds, it appears in the supplementary schedules.

ASSESSING THE CITY'S ECONOMIC CONDITION AND OUTLOOK
Understanding the information in the financial statements is enhanced by considering the specific economic environment in which the City operates.

Lakewood is predominantly
residential, with only 6% of
land zoned for commercial
use. The C ity is home to one
of the nation's largest malls,
featuring approximate ly 2.1
million square feet of retail
space centrally located
within city limits. By the late
1990s, the City was
essentially "built out,"
leaving minimal land
available for new
developme nt.

Lakewood Business Activity
ii
Consumer Goods
■ Restaurants
State & County Pools
Autos & Transportation
■ Service Stations
Food & Drugs
■ Building & Construction
Business & Industry
Annual Comprehensive Financ ial Repo1t
December 9, 2025

Retail sales remain the City's primary economic indicator and a maj or driver of General Fund revenue.

Sales tax revenues account for approximately 34% of General Fund revenues. More than 4,000 businesses - including home-based operations - generated approximately $ 17.2 million in Bradley-Burns sales tax revenue in Fiscal Year (FY) 2024-25. Measure L, the local 0.75% transactions and use tax approved by voters in March 2020, provided an add itional $ 13.5 million during the year. The City's top twenty-five retailers collective ly produce 57% of Bradley-Burns revenue. $35
$30
$25
$20
$15
$10
$5
Lakewood Sales Tax Revenue
(in Millions of Dollars)
End of Triple Flip
• Sales Tax - Local (Measure L)
• Sales Tax (Bradley Burns)
.. ,.
..
$0 ~/1!!!!!!!~ ~~~::R!!!!;::l!~bl;::~ ;:::6~ ~-;:.:1:~-:j!!J!;::!,,!;;:;:_!!!!!;:~;:::1!!~-:j!!J7~ Like many commun1t1es, Lakewood
has experienced slowing growth in
brick-and-mo1tar sales due to the
continued shift to online shopping.

This trend, accelerated during the
COVID-19 pandemic, has largely
returned to pre-pandemic patterns.
lncreased online sales have boosted
the City's allocation from state and
county sa les-tax pools; however, this
offset is expected to diminish over
time as the City's share of statewide
brick-and-mortar sales declines. 0 ~ ~ ~ ~ ½ ~ ~ ~ ~ 0 ~ ~ ~ ~ ~ * ~
~~~~~~~~~~&&&&&&~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
*Budget Measure L significantly reshaped the
City's fiscal outlook. Revenue from
the tax-applied to both in-store and online transactions-he lps the City maintain essentia l services, address aging facilities and infrastructure, and suppo1t long-term financial stability.

Despite 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 oppo1t unities, as well as add ing 147 fu ll-time and 166 part-time jobs from over 80 new businesses in Lakewood, including home occupation businesses. Among the new businesses opening or expanding during the year were Big Blue Swim School, Boba Blitz, and Ziggi's Coffee.

Lakewood 1s considered a " low
property tax city," rece1v111g
approximately 5.84% of countywide
collections the fourth-lowest
al locati on in Los Angeles County--due
to its historically small municipal levy
prior to the passage of Proposition 13 in
the late l 970's.

During the year, the County Assessor
increased assessments by 2%, the
maximum allowable annual increase.

While most Proposition 8 reductions
from the Great Recession had been
$14,000
$12,000
$10,000
$8,000
$6,000
$4,000
$2,000
/
V
V
v
v
~ ,_ - ,_ -
Lakewood Net Taxable Property Value
(in millions of dollars) - r - - - .. - - - ~
.. - - f- - f- - - t. ,_ -- - ,_ - ,_ - - - - ,_ - -
- - ,_ - ,_I' - ,_ - ,_ - -
>- - - Year-Over-Year Change in Property Value

8.0% ----------------------

4.0% t - ::.:::~;:.~-.'7"'-<~ .... ~~-~-~~•=!:• =•~,,.·-··~t!!!:::.~ .... ~~ ..... ,-.. .- 0.0¾ ~ I • ?"'." I I I ,: I -4.0"/4 -'-·---------------------
reversed in recent years, FY 2024-25 saw $5.5 million in net reductions due to rising mortgage rates and slight declines in some property values. Nevertheless, overall taxable value increased by more than $546 million, driven primarily by the a llowable annua l increase.

Annua l Comprehensive Financ ia l Report
December 9, 2025

1,000,000
900,000
800,000
700,000
600,000
500,000
400,000
300,000
200,000
100,000
0 Median Price Single Family Home • Number of Annual Home Sales

I I I I I I I I
1,000
900
800
700
600
500
400
300
200
100
0 The City 's tota l FY 2024-25
assessed valuation was $12.8
billion, a 4.4% increase from the
prior year, though slightly below the
County's overall growth rate of

4.9%. The median si ngle-family
home price rose 0.6%, from
$850,000 to $855,000, reflecting the
impact of continued elevated
mortgage interest rates and
affordabi I ity cha! lenges.

Residual property tax revenues from
the dissolution of the Lakewood
Redevelopment Agency (LRA),
which began in FY 201 2-1 3, are expected to be approximately $220,000 in FY 2025-26 as former LRA bonds have been fu lly repaid.

FY 2024-25 property tax revenue
increased 6.2% from the prior year, $s,ooo,ooo ■
however they fe ll slightly sho1t of ■
he ightened budget expectations by 1.3%. $G,ooo,ooo
Overall, property tax accounts for roughly
Lakewood Property Tax Revenue
Residual Property Tax
PTAF Settlement
9% of General Fund revenue, while
prope1ty-tax-in-lieu of vehicle license fees $
4 ,ooo,ooo
represents an additional 15%. While the
COVID- 19 pandemic had a significant $2,000,000
effect oncerta inrevenues, it had a minimal ~ ;;, $ $ ~ & ;;, ;: ~ 'V ~ 'V 'V 'V ~ ~ ~ ~ long-term effect on prope1ty tax revenue "' sources. Fu1thermore, bui lding activity * Budget
has continued to be strong and growing. In rev iewing the year's deve lopments, over 4,000 construction and remodeling permits were issued during FY 2024-25 - or about 5% more than the prev ious year. -- Lakewood Utility Users Tax Revenue $5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$-
* Budget
Among other factors, City revenues
are sensitive to changes in the
commodity markets. The City's 3%
Utility User's Tax (UUT) generated
approximately $3.9 million in FY
2024-25, representing 4.3% of General
Fund revenues. While gas, electricity
and water components increased
modestly, telecommunications
revenues declined. This reflects the
long-term shift away from taxable
telecommunications services.

Telecommun ications UUT revenue is now less than one-quarter of its 20 10 peak, declining 2 .9% in FY 2024-25 to $402,848.
iv
Annual Comprehensive Financ ial Repo11
December 9, 2025

Lakewood's unemployment rate
c losely tracks that of Los Angeles
County but is generally lower.

Excluding the pandemic spike, rates
have ranged from 3.6% to 5.7% over
the past decade. As of August 2025,
Lakewood's unemployment rate was

5.7% compared with the County's

6.3%. Major employers include the
Long Beach Unified School District,
Los Angeles County, UCJ Hea lthLakewood, the City of Lakewood, and a range ofreta il, automotive, and homeimprovement businesses.

Lakewood Unemployment Rate Labor Force

8.0% ------ Los Angeles Area April-April CPI --- The April-to-April Consumer Price Index (CPI) for the Los AngelesRiverside-Orange County region was 3.0% in 2025. After reaching 40-
year highs in 2022, inflation has
moderated toward historica l norms.

Higher interest rates, implemented
by the Federal Reserve in recent
years to control inflation, have begun
to ease, with further reductions
anticipated in upcoming actions.

6.0%
4 .0%

ECONOMIC OUTLOOK
Beacon Economics provides market insights and forecasts for communities across the western United States. In their recent analysis Beacon projects that Southern Califo rnia will remain economically resilient into late 2025 and early 2026, but that growth will be modest compared with the post-pandemic boom.

Beacon Economics also proj ects slowing gross domestic product (GDP) and hiring growth as the economy cools toward more normal rates, with the state avoiding a broad downturn but fac ing a less favora ble outlook than previously antic ipated.

Retail and sales-tax dynamics will be the chief near-term drivers for many local governments. The HdL Companies, the City's sales tax revenue consultant, recently published sales-tax reports showing only minimal statewide sales-tax growth in 2025 with a muted outlook for the tail end of the year, reflecting continued strength in e-commerce, inventory dynamics, and uneven brick-and-mo11ar performance; HdL expects flat to low single-dig it growth in the near term, w ith vo latility persisting.

Key challenges into early 2026 inc lude higher borrowing costs, housing supply constraints, and policy unce11ainties that could restrain business investment and consumer spending. Beacon highlights that inflationary pressures have eased from the highs seen in 2022, but that slower real GDP growth and housing market headwinds (tight supply, e levated mortgage rates) continue to c loud the outlook. If interest rates continue falling as proj ected, consumer demand and taxable sales could firm up in 2026.

V
Annual Comprehensive Financial Report
December 9, 2025

Overall, though, there is still concern over growing federal deficits and the federal government's dependency on lower bowering costs to pay for that debt, which has been greatly aided through the significant increase in foreign investment. Fed policy going forward will greatly depend on the balancing of the attractiveness of US markets for investment with the lack of impetus to reign in government spending due to lower borrowing costs. Beacon Economics opines that the imbalance could break over the next year or so or could last years into the future. Given the City's strong financial foundation and the makeup of its sales tax base (primarily mid-level, general goods retailers), the City is well positioned either way.

LONG-TERM FINANCIAL PLANNING
Long-term financial planning encompasses the ongoing management of the City's programs and capital assets, including infrastructure such as streets, streetlights, traffic signals, medians, signage, parks, recreation facilities, water mains, sidewallcs, trees, and bus stops. The City's long-term plan also accounts for debt obligations, pension and post-employment benefit liabilities, and the maintenance and replacement of capital assets. Policies have been established to guide financial management in alignment with the City's fiscal philosophy.

The City's fmancial and operating budget policies provide the framework for maintaining or improving financial position, governance practices, and credit ratings. The purchasing and operating budget policies promote stewardship of public resources.

The cash and investment policy focuses on achieving a market-rate return within the constraints of safety, liquidity, and cash-flow needs - prioritizing safety and liquidity above return.

The govennnental fund balance policy establishes reserve requirements for economic uncertainty (20% of operating costs), unforeseen capital expenditures, emergency response, and pension obligations.

The capital financing and debt management policy establishes guidelines for the fmancing of long-term assets and capital improvements.

The capital improvement program and replacement-of-assets policy guides the development of multi-year capital projects. Although capital improvements are separate from the operating budget, annual operating budgets include set-aside funding for capital needs. City staff actively seek grants to support capital projects, infrastructure maintenance, public safety, recreation, transportation, and housing programs. Recent project and program accomplishments include:

Public Safety Activities:
• Implemented key components of the Neighborhood Safety Enhancement Plan, including the Dedicated Sheriff's Deputy crime suppression unit and utilization of contracted private security to perform targeted overnight patrols.
• Organized multiple events for residents to meet and interact with members of law enforcement and Public Safety Department staff. These included the bi-monthly Coffee with a Deputy series, two Kids and Cops events and the Connect with Public Safety series with community meetings and tours of Lakewood Sheriff's Station.
• Increased Neighborhood Watch participants with six additional block captains Citywide. • 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. vi
Annual Comprehensive Financial Report
December 9, 2025

• 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. • Increased staffing for Homeless Service program with addition of two contracted Homeless Services Liaisons to enhance outreach to homeless individuals in coordination with various city departments, law enforcement, regional outreach service providers and other partner agencies. Continued Homeless Services Liaison program funded using Measure H money made available through the Gateway Cities Council of Govermnent and general ftmds.
• Continued to contract for 15 dedicated shelter beds at Salvation Army's Bell Shelter for Lakewoodbased individuals experiencing homelessness.

Development in the City:
• During FY 2024-25, the City issued a total of 4,246 commercial and residential building permits, a 5% increase from the prior year.
• The Planning Division processed over 600 applications for new projects. • There were a number of investments in Lakewood from companies within the Lakewood Center, which included various interior renovation projects.
• The Lalcewood Center was put on the market for sale with a credible, prospective buyer being identified prior to the end of the fiscal year.

Street, Stormwater and Traffic Signal Improvements:
• Trimmed approximately 6,848 trees, removed over 137 trees determined to be in poor condition, and replanted 403 trees.
• Removed and replaced I.I miles of curb & gutter and 10.3 miles of sidewalk, enabling better movement of pedestrians and run-off water.
• Reconstructed 7 ADA curb ramps to bring them up to current standards.

Water System Improvements:
• Completed design plans for Well 22B, providing for a new high-capacity water well capable of producing over three million gallons per day upon completion. • Completed design plans for two miles of pipelines which will be constructed in FY 25-26 to improve Citywide water quality, fire protection and water supply reliability. • Completed the installation of security cameras at Plant 13 & Plant 22, enhancing operational efficiency and ensuring water quality and safety.
• Completed the Cross-Connection Control Plan to protect public drinking water supply and prevent contamination or pollution from backflow.

Parks and Commnnity Facilities Pro,iects and Activities:
• Completed security improvements at every public facility with the installation of panic buttons, allowing for discrete notification of emergency services. This included the installation of FOB access at City Hall. • Playgrow1d improvements were completed at Biscailuz and Boyar Parks, including the replacement of the Biscailuz tot lot playground and both the tot lot and school-age playground at Boyar. • Playground repairs and Poured-In-Place surfacing were completed at Palms and Mayfair Pru·ks. • The Civic Center Block Party was held Saturday, June 28, 2025. Over 15,000 people attended the spectacular event.
• The second annual LeadHer Lakewood event delivered a celebration of women's empowerment and leadership in Lakewood with over 200 people attending.
vii
Annual Comprehensive Financial Report
December 9, 2025

• During FY 2024-25 the Aquatics Program provided recreation swim for 13,125 attendees and 3,338 swim lessons.
• Attendance in the Human Services Association (HSA) daily Nutrition Program increased 10%, from the prior year to 19,703 meals served in FY 2024-25. The increase has been attributed to an increased desire in Lakewood's older adult population to "get out and socialize," as well as economic factors. • The Project Shepherd program continued to serve residents in need. Backpacks filled with school supplies were given to a record 584 school-age children in August 2024. In December 2024, 1,605 Lakewood residents ( 4 31 families) were provided Project Shepherd 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 739 children as donations were given according to their holiday wish lists.
• The 27th annual LAMP/LCEA Special Olympics Fundraiser was held on Friday, September 20, at the Lakewood Youth Center and Del Valle Park, and was another very successful event. Staff, family and friends raised $5,202 for the Lakewood Special Olympics athletes.

Public Communication Projects:
• The City continued to provide legendary customer service by receiving and processing over I 0,000 service requests through multiple contact methods, including in-person, phone, and mobile apps. • The third cohort consisting of35 residents in the Lakewood Leadership Academy took place, continuing to educate and develop effective community leaders to take an active role towards building a stronger Lakewood.
• The City was awarded the Beacon Spotlight Gold Award by the Institute for Local Government. The award recognizes city accomplishments in sustainability best practices. • The City published 147 e-Magazines this past year, an increase of65% from the prior year. Similarly, social media posts on official city pages over the past year increased by 18% from 614 to 727, highlighting the City's commitment to informing the community through varions public information channels.

Long-term Debt:

Long-term debt is limited to the City's Goverrunental 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 nsing 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 oversees 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

80.26% funded as of June 30, 2024, per the CalPERS GASB 68 Accounting Valuation Report and the market value of assets.
vii
Annual Comprehensive Financial Report
December 9, 2025

• 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 101.01% funded as of June 30, 2025, 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 108.01 % funded as of June 30, 2025, 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. 101 - In June 2022, the GASB issued Statement No. 101, Compensated Absences.

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. Implementation of this Statement resulted in restatement of beginning net position on July 1, 2024 presented in Note 19.

GASB Statement No. 102 - In December 2023, the GASB issued Statement No. 102, Certain Risk Disclosures. It requires governments to provide standardized disclosures about significant risks and uncertainties that could materially affect their financial position or operations. This includes vulnerabilities related to concentrations (such as reliance on a major employer, taxpayer, or grantor), constraints on resource availability, and uncertainties that could impact services or fmancial stability. The goal is to improve transparency and comparability of risk-related information. GASB 102 was effective for fiscal years beginning after June 15, 2024, with earlier application encouraged. There were no significant impacts on the City's financial statements.

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, 2024. This was the 43nl 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. ix
Annual Comprehensive Financial Report
December 9, 2025
Page I 0
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 c ity. 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 Counci l, especially the Audit Committee, for their interest and suppoti in the development of this report.

Respectfully submitted,
/ t /,?///~ Thaddeus McCormack
City Manager Director of Finance & Adm in. Services
X

CITY OF LAKEWOOD PRINCIPAL OFFICERS

CITY COUNCIL

CASSANDRA CHASE
Mayor

JEFF WOOD
Vice Mayor

STEVE CROFT
Council Member

DAVID ARELLANO
Council Member

TODD ROGERS
Council Member

ADMINISTRATION AND DEPARTMENT DIRECTORS
THADDEUS McCORMACK
City Manager

JONES MAYER
City Attorney

PAOLO BELTRAN
Deputy City Manager

ALDO CERVANTES VALARIE FROST
Director of Community Development Director of Recreation and Community Services

JOSE GOMEZ
Director of Finance and Administrative Services

KELLI PICKLER
Director of Public Works
xi

DEREK NGUYEN
Director of Water Resources

JOSHUA YORDT
Director of Public Safety
X
People of Lakewood
Administration
---------, ----------- City Council
Successor
Agency
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Communications
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Successor
Housing
Agency
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Community
Development
Planning &
Environment
Commission
City Manager
Finance &
Administrat ive
Services
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City Attorney
Community
Safety
Commission
Recreation &
Community
Services
Commission
Deputy
City Manager
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Lakewood
Public
Financing
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Pu blic Safety Public Works
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Government Finance Officers Association
Certificate of
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for Excellence
in Financial
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Presented to
City of Lakewood
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2024
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Executive Director/CEO
xiii
xiv

INDEPENDENT AUDITOR'S REPORT
To the Honorable Mayor and the Members of the City Counc il of the City of Lakewood
Lakewood, Ca lifornia
Repo11 on the Audit of the Financial Statements
Opinions
6 Hutton Centre Drive, Suite 1200 /<>II
Santa Ana, California 92707 \?..I
www.pungroup.cpa (tE]
We have audited the financ ia l statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund in formation of the City of Lakewood, Californ ia (the "City), as of and for the year ended June 30, 2025, 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 accompany ing financial statements referred to above present fairly, in a ll mate rial respects, the respective financial position of the governmental activities, the business-type activ ities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2025, and the respective changes in financ ial 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 fu1ther described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance w ith the relevant eth ical req uirements relating to o ur audit. We be lieve that the audit evidence we have obtained is suffic ient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statemeuts 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 financ ial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financia l 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 financia l statement date, including any curre ntly known information that may raise s ubstantial doubt shortly thereafter.

ORANGE COUNTY • SAN DIEGO • SACRAMENTO • WALNUT CREEK • LAS VEGAS • PHOENIX 000 To the Honorable Mayor and the Members of the City Council of the City of Lakewood
Lakewood, California
Page2
Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions.

Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with 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 amotmts 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, iu 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 Schedule - General Ftmd, 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 fmancial statements.

Such information is the responsibility of management and, although not a part of the basic fmancial 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. 2 To the Honorable Mayor and the Members of the City Council of the City ofLakewood
Lakewood, California

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 accmmting 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 arumal rep01t. The other information comprises the Introductory and Statistical sections but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

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

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated November 26, 2025, on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control over financial repo1ting 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 26, 2025
3 4
City of Lakewood
Management's Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2025
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, 2025. 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 ofresources of the City (which include the value of streets, sidewalks and other infrastructure) exceeded liabilities and deferred inflows of resources at June 30, 2025, by $307,513,859.

Of this amount, $99,195,677 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 $22,364,584. The governmental activities increased by $19,424,805 and business-type activities by $2,939,779 for the year ended June 30, 2025. • Long Term Debt: The City's total debt increased by $9,587,578. This was attributable to the capital financing agreement entered into in FY 2024-25.
• Governmental Funds: As ofJune 30, 2025, the City's governmental funds repo1ted a combined ending fund balance of$162,553,195. Approximately 59.1 percent of the ending fund balance, $96,025,663, 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, 2025, committed, assigned and unassigned fund balance of the general fund was $93,324,520 out of total fund balance of $115,560,989. All but $670,50 I 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).
5 City of Lakewood
Management's Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
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 ofrelated 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 ftmds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.

Governmental funds. Governmental fonds 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 fmancial 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 fond and governmental activities.

The City maintains twenty seven governmental funds comprised of three major and twenty two 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, Budgetruy comparisons for other funds are provided in the supplementary information of this report.

The goverrunental fund financial statements can be found on pages 26 - 32 of this report. 6 City of Lakewood
Management's Discnssion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
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.

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 proprietary fund financial statements can be found on pages 34 - 39 of this repmt.

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 fmancial 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 goverrunental funds and agency funds are presented immediately following the required supplementary information. Combining and individual fund statements and schedules can be found on pages 121-152 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. TI1e 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 $307,513,859 at the close of the most recent fiscal year. 7 City of Lakewood
Management's Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
The fo ll owing table shows the City 's net position as of June 30, 2025 and 2024:

City of Lakewood
Net Position
Governmental Activities Business-type Activities Total
2025 2024* 2025 2024* 2025
Current and other assets $ 176.740,79 1 $ 154.596,332 $ 24.102,337 $ 19.6 15, 196 $ 200,843, 128 $ Cap ital assets 131 ,495,704 126,290,449 35,593,015 37.691 ,260 167,088,719 Total Assets 308,236.495 280,886,78 1 59.695,352 57.306.456 367.93 1,847 Deferred Out·flow of Resources 10,466,115 14,016.744 1.158,457 1,540.459 11 ,624,572 Long-tenn liabil ities outstanding 43, 147,668 40, 114,20 1 7,803,039 9.350, 138 50,950.707 Other liabilities 10,067,790 9.609,440 4,023,417 3,488, 137 14.09 1 .207 Total Liabilil ies 53,215A58 49,723,641 11,826,456 12,838,275 65,041.914 Deterred Inflow of Resources 5.617.862 4,735.399 1,382.784 1,303.850 7,000,646 N el posit ions:

Net Investment in Capital Assets 130,340,973 125,00 1.849 30,599.968 31 ,927. 11 0 I 60. 940,94 I Restricted 47,257,79 1 40,965.862 11 9,450 47,377,241
Unrestricted 82,270,526 74.476.774 16,925, 151 12,777,680 99. 195,677 Total Net Position $ 259,869.290 $ 240,444,485 $ 47,644,569 $ 44,704,790 $ 307,5 I 3,859 $ * 2024 balances were restated due to the implementation or G ASB IO I. 2024*
174.21 1,528
163,98 1.709
338.193.237
15,557,203
49,464.339
13,097.577

62.56 1.9 16
6,039,249
156,928,959
40,965.862
87,254,454
285, I 49.275
By far, the largest portion of the City 's net position, 52.3 percent, reflects its net investment in capital assets (i.e. land, buildings, improvements other than buildings, machinery and equipment, infrastructure, and construction in progress).

T he 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 capita l assets are repo1ted net ofre lated debt, it should be noted that the resources needed to repay this debt must be prov ided from other sources since the capital assets themselves cannot be used to liquidate these liabilities.

A n additiona l po1t ion of the City 's net position, 15.4 percent, represents resources that are subj ect to externa l restrictions o n how they may be used. The remaining balance of $99,195,677 may be used to meet the government's ongoing o bligation to citizens and creditors, but is subj ect to designation for spec ific City programs per the City's Governmental F und Balance Po licy.

At the end of the current fiscal year, the City is able to report positive balances in all three categories of net position, both for the government as a whole, as well as for its separate governmental and business-type activities. At year-end,

50.1 percent of the City's governmental net position and 64.2 percent of the City's business-type activities' net position were invested in capital assets.
8 City of Lakewood
Management's Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
The following table shows the City's changes in net position for the years ended June 30, 2025 and 2024:

City of Lakewood
Chungcs in Net Position
Govemmental Activities Business-type Activities Tmal
2025 2024 2025 2024 2025
Revenues:

Program revenues:

Char1,ies for services s 14.954,916 14.67 1,023 s 15, 133. 11 0 s 12.992.428 s 30,088,026 s Operating grants and comributions 16, 195,885 26.237.087 734.065 16,195.885 CapitaJ grants and contributions n os,826 1.534.046 4.208.826 GeneraJ revenues:

Sales taxes 30.843.759 31.208, 121 30,843,759
Property taxes 19.446,829 IS.S 19.630 19,446.829
Sales taxes-others
Franchise ra.xcs 1,591.-176 1.722.859 1,592.476
Business operation ta.-.;:cs 1.021.0 13 699,707 1,021.0IJ Utility user taxes 3.934,710 3.836.27-1 3.934.7 IO
Other taxes 780,927 409.272 780,927
Investment income 6.309,816 4. 169.777 695,737 -126. 194 7.005.553 Gain on sale of propen y 185.716 85,029 185,716
TotaJ revenues 99,474,873 !03.392.825 15,828.847 14.1 52.687 115.303,720 E~penses:

General govemmcnt 16.649.381 14.693.300 16,649.381
Public safe1y 21.7 16.-120 19,847.784 21.7 16.420
Transpona1ion 8.857.706 9, 196,:277 8.857.706
Community dcvclopmcnl 9.7 11.914 11,541 ,397 9.7 11.914 Health and sanitation 7,524.212 7,018.202 7.524.212
Culture and leisure 14.284.375 16,854.174 14,284,375
Unallocated infrastmc1urc deprecimion 2.852. 149 2.960,33 1 2.852, 149 Interest and fiscal charges 223,514 7.388 223.5 14
Water 11 . 11 9.465 10.916.222 11 ,1 19,465
Total expenses 81.8 I 9.671 82. 1 I 8.853 11 , 11 9.-165 10.9 16.222 92.939, 136 Excess (deficiency) of revenues over e:\vcnses
before lransfers 17.655.202 21.273.972 4. 709.382 3.236.465 22.364.584 Transfers (ne1) 1.769.603 1.580.728 ( I, 769,603) ( 1.580. 728) Changes in net position 19.424,805 22.854,700 2,939.779 1,655,737 22.364,584 Net position nt beginning of yt'.ar. 240,444.485 2 I 7,703,040 44.704,790 43,053,934 285,149.275 Change in accounting principle (GASB IOI) ( 113.255) {4,88 I) Net position at end of year s 259.869,290 s 240.444.485 s 47,644,569 $ -14,704,790 s 307,5 I 3,859 $ Add itional information on the change in net position can be found on pages 20 - 2 1 of this report. 2024
27,663,451

26.971.152

1.534.046

31.208, 12 1

18.819.630

1.722.859
699.707

3.836,174
409.271

4.595.97 1
85,029
117.545.5 12

14.693.300

19.847.784

9. 196,277

11.541.397

7.0 18.202

16.854, 174

2.960.33 1

7.388

10.916,222

93.035.075

14.510,437
24,5 10.437
160.756.974
( 118,136)
285. 149.275
Governmental activities. Overall, governmental revenues decreased by $3,917,952 or 3.8 percent and expenses also decreased by $299,182 or 0.4 percent from prior year. Key e lements of the change are as follows:
• Operating Grants and Contributions decreased by $ 10,041,202. The decrease was derived from a combination of several grants staiting with the American Rescue Plan Act Specia l Revenue Fund (ARPA) be ing a $8,887,645 revenue in FY 2023-24 but not in FY 2024-25. Another maj or contributor is the decrease in Measure W-Regional grant by $1, 186,4 10. The City did not recei ve any Measure W-Regional fund in FY 2024-25 causing the decrease between FY 2023-24 and FY 2024-25.
• Investment income increased by $2,140,039 due to the City's investment earnings revenue benefitting from the sharp rise in interest rates within a short period of time. 9 City of Lakewood
Management's Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
• The Property Tax and Sales Tax revenues decreased by a combined total of $262,837. Property tax revenues rose by $627,199 mainly due to the higher valuation on Lakewood properties. Sales tax decreased slightly by $364,362, indicating a flattening out of sales tax revenues.
• Community Development's expenses decreased by $1,829,483 mainly due to the recording ofa sale of Land Held for Resale properties that transpired in FY 2023-24 but not in FY 2024-25. This was offset by the reclassification of several activities under Culture and Leisure activities in FY 2023-24 that is now under Community Development. • General Government expenses increased by $1,956,081 mainly due to the $2M payment to CalPERS to bring down the unfunded liability.
• Public Safety expenses increased by $1,769,603 due to a combined $989,000 increase in contractual services with the Los Angeles County Sheriff, Southwest Patrol, The Salvation Army and homeless services liaison. In addition, the helicopters had their planned bi-annual maintenance for $315,531. • 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.

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. An increase in the water sales of $2,140,682 was attributed to the combination of the increase in overall demand and consumption of water and the increase in fixed and consumption rates effective July 1, 2024. For the year ended June 30, 2025, the City's business-type activities' change in net position was $2,939,779, an increase of 65.8 percent compared to last year. During the year, the water fixed and volmnetric rates were adjusted to help defray increases in the cost ofpmnping and distributing water and the administration of the utility and infrastructure improvements. Major improvements on the horizon include $6.4 million for a water main construction project, $2.9 million for Well 22B Equipping and Drilling, $1.3 million for Plant 13 Tanks Upgrade project, $800,000 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.
10 City of Lakewood
Management's Discussion and Analysis (Unaudited) (Continued) For the Year Euded June 30, 2025
As of the end of the fiscal year, the City's governmental funds reported a combined ending fund balance of $162,553;195, an increase of$20,184,884 in comparison with the prior year. As noted in the Governmental Activities section, the increase was primarily due to capital financing agreement entered into FY 2024-25. Of the City's governmental funds ending fund balance, $96,025,663 or 59.1 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, $66,527,532, 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 $16,925,151, an increase of $4,147,471 from the prior year. These funds will be used to fund future water operations and plarmed 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 2024-25, committed, assigned and unassigned ftmd balance of the General Fund was $93,324,520, while total fund balance was $115,560,989. The General Fund's ending fund balance increased by $16,588,303 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 80.8 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 $13,356,276. The biggest increase is due to the $JO.SM restricted asset that the City had at FYE June 30, 2025 which is the issuance of debt for the City's HV AC/Roof/Electrical project. The other biggest increase is in the Investment Income, Rents, and Concession category which was favorable for an amount of$1,781,456. Current service charges and Intergovernmental revenues increased by $803,794 and $465,911, respectively. The increases were offset by decreases from Taxes, and Miscellaneous revenues combining for $456,764.

Overall expenditures (including other financing uses) increased by $14,328,012. The biggest change is the increase to Public Safety by $10,655,018 because of the ARP A fund exchange funding part of the cost in FY 2023-24 but not in FY 2024-25. The rest of the categories increased, with General Government having the highest increase compared to the other categories by $3,549,301. This was mainly due to an increase of $2.6M contribution to the Ca!PERS Unfunded Liability and a $500,000 increase to salary/benefits.

Aside from the General Fund, the City has other major and nonmajor funds, including Housing Admin and Program Capital Projects Fund, Lakewood Capital Improvements Projects Fund, and the nonmajor Governmental Funds for Special Revenue sources. The Housing Admin and Program Capital Projects Fund's ending fund balance decreased by $682,704, mainly due to the transfer of activities of the Salvation Army dedicated shelter beds for the Lakewood-based homeless from the General Fund to the I-lousing fund. The Lakewood Capital hnprovements Projects Fund's ending fund balance decreased by $421,090 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 $4,700,375 in comparison to the prior year, mainly due to Comity and State funds being greater than expenditures during the fiscal year. 11 City of Lakewood
Management's Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
General Fund Budgetary Highlights
For the fiscal year ended June 30, 2025, the General Fund's final ame nded expenditure budget increased over the original budget by $35,848,177, however, actual expenditures were $33,726,055 lower than the final amended budget.

These can be briefly summarized as follows:
• Capital proj ects that either started in FY 2024-25 or rolled over from previous fiscal years were not completed by June 30, 2025. Multi-year projects that had to be carried over into FY 2025-26 totaled $25,001 ,000. Some of these proj ects are as follows: Electrical, HV AC and Roof improvements fo r $ 17,240,865; Palms Park improvements for $1, I 02, 743, replacement of generators at City Hall and the Center for $ 1,385,203, Counc il Chambers AV improvement for $1,256,521, and facilities renovation for $1 , 164,484. • Actua l expenditures were $7,009,52 1 lower than the operating final budget due to the fo llowing: purc hase of vehicle/equipment were back-ordered, a number of vacant ful l-time and patt-time positions and savings from positions filled at a lower pay step, the Genera l Plan for Commun ity Development was not able to be worked on in FY 24/25, and lastly there were fewer contracted eng ineering services.

Capital Asset and Debt Administration
Capital assets. The City's investment in capital assets for its governmental and business-type act1v1t1es as of June 30, 2025, amounts to $ 167,088,719, an increase of $3, I 07,0 IO or 1. 9 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.

Capital assets as of June 30, 2025 and 2024 are comprised of the following:

City of Lakewood
Capital Assets (Net of_ dep_reciatim, mid Amortir,afio11 ) Governmental Activities Business-ty pe Activities Total 2025 2024 2025 2024 2025 2024
Land $ 17.041.023 $ 17,04 1.023 $ 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 44.4 16,209 44.251,612 2 15.573 144.937 44,631.782 44.396,549 In rrastructurc 33,878,332 36,320.174 33,878,332 36.320.174 Structures and improvements 32.063,663 24,703.445 2 1,623.629 23,099,959 53,687.292 4 7.803.404 Equipment 4.027.347 3.790,465 11,739,00 1 12.271 , 104 15,766,348 16.06 1569 Lease assets 29, 117 74. 102 29. 1 l 7 74.102
Subs~ription assets 40,0 13 I 09.628 80.226 240.674 120.239 350,302 Total $ 131.495, 704 $ 126,290.449 $ 35,593.0 15 $ 37.691.260 $ I 67,088.7 I 9 $ 163,98 1,709 Additional information on the City's capital assets can be found in Note 8 to the basic financ ia l statements.

Long-term debt. At the end of FY 2024-25, the City's total long-term debt outstanding increased by $9,587,578, tota ling $15,503,540. The sign ificant increase is due to the capital financing agreement that was issued in FY 2024-25. 12 City of Lakewood
Management's Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
Long-term debt as of June 30, 2025 and 2024 are comprised of the fo llowing:

City of Lakewood
Summary of Outstanding Debt
Governmental Activities Business-type Act ivities Total 2025 2024 2025 2024 2025
Loan Pay able-M ELPA $ $ $ 4,888,6 14 $ 5,506,7 17 $ 4.888,614 $ Cap ital financing program 10,500.000 I 0,500,000
Lease Payable 8.585 60,475 8,585
Subscription Liabilities 18,078 9 1,337 88,263 257.433 106,34 1 Total $ I 0,526,663 $ 151 ,8 12 $ 4,976,877 $ 5.764, 150 $ 15.503,540 $ 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
2024

5.506,7 l 7

60.475
348,770
5,9 15.962
The City prudently antic ipates and conservatively budgets for General Fund revenues to gradually increase as the economy recovers from the lingering effects of the COVlD-19 pandemic. The City's sales tax reven ues 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 dim inished revenue from other revenue sources. The passage provided a timely and much-needed stabilizing effect for the city. Other anticipated increase inc ludes a modest increase in property tax revenues, a grmvth in culture and le isure, 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 fl at through 2026.

The City 's General Fund operational expenditures are also expected to increase annua lly over the next fi ve years: in Fiscal Year 2024-25 General Fund expenditures increased by 18.1 percent due to the use of ARP A fu nds in FY 2023- 24 that are no longer available in FY 2024-25. Employee serv ices costs increased by 7.7 percent in Fiscal Year 2024- 25 over that of the prior year. The City is a contract-city where 39.4 percent of the cost of operations is employee service-related, and contract services made up 44.4 percent of the City's General Fund operational costs. The April to April Consume r 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 3.0 percent in 2025. Overall, General Fund contract services increased by

34.4 percent in Fiscal Year 2024-25 due to ARPA funds defraying the general fund expenditures in FY 2023-24. The C ity's water, refuse and building and safety fees also inc lude the local CPI as a factor in determining rate increases.

T he City weathered the Great Recession, the prolonged sluggish multi-year recovery, a nd now try ing to withstand the lasting effects of the COVID-1 9 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 commun ity for residents and business. By keeping this foc us, the City has built a large capital base that includes the entire inventory of City assets: streets, sidewalks, water system, trees, parks, community fac ilities and goodwill. The City's goodwill, cultivated through recreation, community services, public safety and econom ic development programs, creates the ne ighborly 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 Transmitta l Letter.
13 City of Lakewood
Management's Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
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 shonld be addressed to the Director of Finance and Administrative Services, City of Lakewood, Post Office Box 220, Lakewood, CA 90712.
14 BASIC FINANCIAL STATEMENTS
15 16

GOVERNMENT-WIDE FINANCIAL STATEMENTS
17 ASSETS
Current assets:

Cash and investments
Receivables:

Accounts
Accmed revenue
Leases receivable
Prepaid items
Inventories
Total current assets
Noncurrent assets:

Restricted cash and investments:

Cash in escrow
Held by City
Notes receivable
Leases receivable
Receivable from Successor Agency
Net pension asset
Net OPEB asset
Capital assets:

Nondepreciable
Depreciable, net
Intangible assets, net
Total capital assets
Total noncurrent nssets
Totnl assets

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resources related to pensions
Deferred outflows of resources related to OPEB
Total deferred outflows of resources
See accompanying Notes to the Dasie Financial Statements.

City of Lakewood
Statement of Net Position
June 30, 2025
$
18 Governmental
Activities
134,843,563
10,546,296
218,529
66,634
119,093
145,794,115
10,648,964
2,756,767
718,639
15,642,712
228,239
951,355
61,457,232
69,969,342
69,130
131,495,704
162,442,380
308,236,495
10,102,159
363,956
10,466,115
Prirnaty Government
Business~ Type
Activities Total
$ 20,438,561 $ 155,282,124
1,114,883 ll,661,l79
1,359,286 1,359,286
46,477 265,006
66,634
108,259 227,352
23,067,466 168,861,581
10,648,964
63,832 63,832
2,756,767
851,589 1,570,228
15,642,712
25,360 253,599
94,090 1,045,445
2,150,159 63,607,391
33,362,630 103,331,972
80,226 149,356
35,593,015 167,088,719
36,627,886 199,070,266
59,695,352 367,931,847
1,122,462 11,224,621
35,995 399,951
1,158,457 11,624,572
(Continued)
City of Lakewood
Statement of Net Position (Continued)
June 30, 2025

LIABILITIES
Curre11t liabilities:

Accounts payable
Retention payable
Accrued liabilities
Accrued interest payable
Unearned revenues
Long-term liabilities - due within one year
Total current liabilities
Noncurrent liabilities:

Liabilities payable from restricted assets:

Customer deposits
Long-term liabilities - due in more than one year
Aggregate net pension liability
Total noncurrent liabilities
Total liabilities

DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources related to pensions
Deferred inflows of resources related to OPEB
Deferred inflows of resources related to leases
Total deferred inflows of resour·ces

NET POSITION
Net investment in capital assets
Restricted for:

Transportation
Public safety
Community development
Health and sanitation
Culture and leisure
Net pension asset
Net OPEB asset
Unrestricted
Total net position
See accompanying Notes to the Basic Financial Statements. $
19 Governmental
Activities
6,128,000
237,189
952,217
220,932
1,383,098
1,146,354
10,067,790
1,308,620
11,619,690
30,219,358
43,147,668
53,215,458
3,351,644
1,379,795
886,423
5,617,862
130,340,973
33,862,658
115,192
8,991,321
166,928
2,942,098
228,239
951,355
82,270,526
259,869,290
Primary Government
Business-Type
Activities
3,012,393
71,662
84,265
855,097
4,023,417
63,832
4,381,501
3,357,706
7,803,039
11,826,456
372,404
136,463
873,917
1,382,784
30,599,968
25,360
94,090
16,925,151
$ 47,644,569 $
Total
9,140,393
237,189
1,023,879
220,932
1,467,363
2,001,451
14,091,207
1,372,452
16,001,191
33,577,064
50,950,707
65,041,914
3,724,048
1,516,258
1,760,340
7,000,646
160,940,941
33,862,658
115,192
8,991,321
166,928
2,942,098
253,599
1,045,445
99,195,677
307,513,859
( Concluded)
City of Lakewood
Statement of Activities
For the Year Ended June 30, 2025
Charges for
Functions/ProGroms Expenses Services
Governmental Activities:

General government $ 16,649,381 $ 1,204,600
Public safety 21,716,420 419,290
Transportation 8,857,706
Community development 9,711,914 3,301,936
Health and sanitation 7,524,212 8,130,286
Culture and leisure 14,284,375 1,898,804
Unallocated infrastructure depreciation 2,852,149
Interest and fiscal charges 223,514
Total governmentol activities 81,819,671 14,954,916
Business-type Activities:

Water 11,119,465 15,133,110
Total business-type activities 11,119,465 15,133,110
Total primary government $ 92,939,136 $ 30,088,026
See accompanying Notes to the Basic Financial Statements. 20 Program Revenues
Operating Capital
Grants and Grants and
Contributions Contributions
$ 2,244,433 $ 1,558,767
268,104
11,935,300 1,742,917
1,348,513
151,560
247,975 907,142
16,195,885 4,208,826
$ 16,195,885 $ 4,208,826
City of Lakewood
Statement of Activities (Continued)
For the Year Ended June 30, 2025
Net (Expense) Revenue and
Changes in Net Position
Governmental Business-Type
Functions/Prog;rnms Activities Activities Total
Governmental Activities:

General government $ (11,641,581) $ $ (11,641,581)
Public sufety (21,029,026) (21,029,026)
Transportation 4,820,511 4,820,511
Community development (5,061,465) (5,061,465)
Health and sanitation 757,634 757,634
Culture and leisure (11,230,454) (I 1,230,454)
Unallocated infrastructure depreciation (2,852,149) (2,852,149) Interest and fiscal charges (223,514) (223,514)
Total governmental activities (46,460,044) (46,460,044) Business-type Activities:

Water 4,013,645 4,013,645
Total business-type activities 4,013,645 4,013,645
Total primary government (46,460,044) 4,013,645 (42,446,399) Genernl revenues:

Taxes:

Sales taxes - Bradley Burns 30,843,759 30,843,759
Property taxes 19,446,829 19,446,829
Franchise taxes 1,592,476 1,592,476
Business operation taxes 1,021,013 1,021,013
Utility user taxes 3,934,710 3,934,710
Other taxes 780,927 780,927
Total taxes 57,619,714 57,619,714
Investment income 6,309,816 695,737 7,005,553
Gain on sale of property 185,716 185,716
Total general revenues 64,115,246 695,737 64,810,983
T1·ansfer:

Transfers (net) 1,769,603 (1,769,603)
Total transfer 1,769,603 (1,769,603)
Changes in net position 19,424,805 2,939,779 22,364,584 Net position - beginning of year, as previously reported 240,557,740 44,709,671 285,267,411 Chnngc in accounting principle (GASB 101) (113,255) (4,881) (118,136) Beginning of year, as restated 240,444,485 44,704,790 285,149,275 Net position - end of year $ 259,869,290 $ 47,644,569 $ 307,513,859 See accompanying Notes to the Basic Fin!lflcial Statements. 21 22

FUND FINANCIAL STATEMENTS
23 24

GOVERNMENTAL FUND FINANCIAL STATEMENTS
25 City of Lakewood
Balance Sheet
Governmental Funds
June 30, 2025
Major Funds
Housing Admin Lakewood Capital
and Program Improvements
General Capital Capital Projects
Fund Projects Fund Fund
ASSETS
Cash and investments $ 93,997,960 $ 2,289,184 $ 2,015,627 Restricted cash and investments:

Cash in escrow 10,648,964
Accounts receivable 7,274,886 1,529,887
Prepaid items 66,634
Inventories 119,093
Due from other funds 574,341
Receivable from Successor Agency 11,401,778 4,240,934
Notes receivable 2,286,077
Leases receivable 937,168
Total assets $ 125 g2g si& $ 8 8l{i,125 $ 3 515 ~I&

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable $ 5,596,311 $ 259,346 $ 12,000
Accrued liabilities 952,217
Retention payable 146,382 81,807
Deposit payable 1,307,791 829
Due to other funds
Unearned revenue 245,390
Total liabilities 8,248,091 260,175 93,807
Deferred inflows of resources:

Unavailable revenue 325,321 724,993
Deferred inflows of resources related to leases 886,423 Total deferred inflows of resources 1,211,744 724,993
Fund balances:

Nonspendable
Prepaid items 66,634
Inventories 119,093
Receivables from Successor Agency 11,401,778
Restricted
Public safety
Transportation projects and street maintenance
Community development 8,556,020
Health and sanitation
Culture and leisure
Capital projects 10,648,964
Connnitted
Self insurance 4,000,000
Pension and personnel obligations 6,780,334
Capital projects 14,091,033 2,726,714
Refuse stabilization 1,964,966
ARP A exchange 4,697,162
Economic uncertainties 18,117,831
Assigned
Infrastructure development 6,000,000
ARPA exchange (for corner lot) 2,196,460
Measure L CIP reserve 5,107,599
Equipment replacement 2,803,367
Contract emergency services 2,495,267
Legal fees contingency 1,300,000
Pension obligations paydown 1,000,000
Measure L long-term reserve 22,100,000
Unassigned (deficit) 670,501
Total fund balances 115,560,989 8,556,020 2,726,714
Total liabilities, deferred inflows of
resources, and fund balances $ 125 Q2Q 824 $ 8 ~16 195 $ 3 515 514 See accompanying Notes to the Busic Financial Statements. 26 City of Lakewood
Balance Sheet (Continued)
Governmental Funds
June 30, 2025
Nonmajor Total
Governmental Governmental
Funds Funds
ASSETS
Cash and investments $ 36,540,792 $ 134,843,563
Restricted cash and investments:

Cash in escrow 10,648,964
Accounts receivable 1,741,523 10,546,296
Prepaid items 66,634
Inventories 119,093
Due from other funds 574,341
Receivable from Successor Agency 15,642,712
Notes receivable 470,690 2,756,767
Leases receivable 937,168
Total assets $ JB Z5J oos $ IZ~ I,~ ~J8

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable $ 260,343 $ 6,128,000
Accrued liabilities 952,217
Retention payable 9,000 237,189
Deposit payable 1,308,620
Due to other funds 574,341 574,341
Unearned revenue 1,137,708 1,383,098
Total liabilities 1,981,392 10,583,465
Deferred inflows of resources:

Unavailable revenue 1,062,141 2,112,455
Deferred inflows of resources related to leases 886,423 Total deferred inflows of resources 1,062,141 2,998,878 Fu.nd balances:

Nonspendable
Prepaid items 66,634
Inventories 119,093
Receivables from Successor Agency 11,401,778
Restricted
Public safety 115,192 I 15,192
Transportation projects and street maintenance 30,447,039 30,447,039 Community development 318,518 8,874,538
Health and sanitation 166,928 166,928
Culture and leisure 4,687,366 4,687,366
Capital projects 10,648,964
Committed
Self insurance 4,000,000
Pension and personnel obligations 6,780,334
Capital projects 16,817,747
Refuse stabilization 1,964,966
ARPA Exchange ( committed) 4,697,162
Economic uncertainties 18,117,831
Assigned
Infrastructure development 6,000,000
ARP A exchange (balance) 2,196,460
Measure L CIP reserve 5,107,599
Equipment replacement 2,803,367
Contract emergency services 2,495,267
Legal fees contingency 1,300,000
Pension obligations paydown 1,000,000
Measure L long-term reserve 22,100,000
Unassigned (deficit) (25,571) 644,930
Total fund balances 35,709,472 162,553,195
Total liabilities, deferred inflows of
resources, Rnd fund b11lanccs
See accompanying Notes to the Basic Financial Statements. $ 381~3 OQ~ $ 110 IJ5 5J8
27 28
City of Lakewood
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2025
Total Fund Balances -Total Governmental Funds
Amounts reported for governmental activities in the statement of net position are different because:

Capital assets used in governmental activities are not current financial resources and therefore are not reported in governmental funds. Those assets consist of:

Amount reported in government-wide statement of position:

Nondepreciable assets
Depreciable/amortizable assets
$ 61,457,232
70,038,472
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:

Leases payable
Subscription liability
Interest payable
Compensated absences
Pensions:

Deferred outflows of resources related to pensions
Net PARS pension asset
Net CalPERS pension liabilities
Deferred inflows of resources related to pensions
Other postemployment benefits:

Deferred outflows of resources related to OPEB
Net OPEB liabilities
Deferred inflows of resources related to OPEB
Net position of governmental activities
See accompanying Notes to lhe Basic Financial Statements. 29 $ 162,553,195
131,495,704
2,112,455
(10,508,585)
(18,078)
(220,932)
(2,239,381)
10,102,159
228,239
(30,219,358)
(3,351,644)
363,956
951,355
(1,379,795)
$ 259,869,290
City of Lakewood
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the Year Ended June 30, 2025
Major Funds
Housing Admin Lakewood Capital
and Program Improvements
General Capital Capital Projects
Fund Projects Fund Fund
REVENUES:

Taxes $ 44,723,747 $ $
Licenses and permits 2,442,507
Fines and forfeitures 735,077
Investment income, rents, and concessions 7,221,177 76,406 Intergovernmental revenues 12,518,824 1,558,767
Current service charges 10,766,933
Other 1,853,171 333,000
Total revenues 80,261,436 409,406 1,558,767
EXPENDITURES:

Current:

General government 16,647,565
Public safety 21,266,046 294,898
Transportation 4,523,479
Community development 9,670,490 447,213
Health and sanitation 7,418,814
Culture and leisure 14,063,894
Capital outlay:

General government 44,928
Public safety 59,776
Transportation 967,407 1,979,857
Community development
Culture and leisure 3,937,653
Debt service:

Principal retirement 125,149
Interest payment 2,582
Total expenditures 78,727,783 742,111 1,979,857

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 1,533,653 (332,705) (421,090)
OTHER FINANCING SOURCES (USES):

Transfers in 4,509,359
Transfers out (26,097) (349,999)
Proceeds from issuance of debt 10,500,000
Proceeds from sale of properties 71,388
Total other financing sources (uses) 15,054,650 (349,999) NET CHANGE IN FUND BALANCES 16,588,303 (682,704) (421,090) FUND BALANCES:

Beginning of year 98,972,686 9,238,724 3,147,804
End of year $ 115,560,989 $ 8,556,020 $ 2,726,714
(Continued)
See accompanying Notes to the Basic Financial Statements. 30 City of Lakewood
Statement of Revenues, Expenditures, and Changes in Fuud Balances (Continued) Governmental Funds
For the Year Ended June 30, 2025
Nonmajor Total
Governmental Governmental
Funds Funds
REVENUES:

Taxes $ 3,892,518 $ 48,616,265
Licenses and permits 227 2,442,734
Fines and forfeitures 735,077
Investment income, rents, and concessions 1,496,277 8,793,860 Intergovenunental revenues 10,771,477 24,849,068
Current service charges l0,766,933
Other 2,186,171
Total revenues 16,160,499 98,390,108
EXPENDITURES:

Current:

General government 87,700 16,735,265
Public safety 325,647 21,886,591
Transportation 4,782,850 9,306,329
Community development 156,420 10,274,123
Health and sanitation 109,616 7,528,430
Culture and leisure 187,300 14,251,194
Capital outlay:

General government 226,876 271,804
Public safety 59,776
Transportation 2,036,057 4,983,321
Community development 319,796 319,796
Culture and leisure 907,142 4,844,795
Debt service:

Principal retirement 125,149
Interest payment 2,582
Total expenditures 9,139,404 90,589,155

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 7,021,095 7,800,953
OTHER FINANCING SOURCES (USES):

Transfers in 97,567 4,606,926
Transfers out (2,461,227) (2,837,323)
Proceeds from issuance of debt 10,500,000
Proceeds from sale of properties 42,940 114,328
Total other financing sources (uses) (2,320,720) 12,383,931 NET CHANGE IN FUND BALANCES 4,700,375 20,184,884
FUND BALANCES:

Beginning of year 31,009,097 142,368,311
End of year $ 35,709,472 $ 162,553,195
(Concluded)
See accompanying Notes to the Dasie Financial Statements. 31 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, 2025
NET CHANGE IN FUND BALANCES - total governmental funds:

Amounts reported for governmental activities in the Statement of Activities are different because:

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:

Capital outlay expenditures
Non-capital expenditures reclassified to functional expense Depreciation and amortization expense
$ 10,479,492
6,020
(5,280,257)
Long-term debt provides current financial resources to govermnental funds, but issuing debt increases long-tel'm liabilities in the statement of net position. Repayment of principal are expenditures in the governmental funds, but the repayment reduces long-tenn liabilities in the statement of net position. Long-term debt proceeds are as follows:

Lease and subscription liability, financing purchase payment Proceeds from capital financing program
Certain accmed 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:

Change in interest payable
Change in compensated absences
Pension expense of CalPERS Plan, net of pension contributions made after measurement date in the an1ount of$6,916,578
Pension expense of PARS Plan, net of pension conlJ·ibutions made during the measurement period in the amount of$574,791
OPEB expense, net of OPEB contributions made <luting the measurement period in the amount of $637,132
Change in net position of governmental activities
See accompanying Notes to the Basic Financial Statements. 32 $
$
20,184,884
5,205,255
125,149
(I0,500,000)
970,437
(220,932)
(I I0,045)
2,451,517
1,012,300
306,240
19,424,805

PROPIUETARY FUND FINANCIAL STATEMENTS
33 Current assets:

Cash and investments
Accounts receivable
Accrued revenue
Inventories
Leases receivable
ASSETS
Total current assets
Noncurrent assets:

Restricted cash and investments:

Customer deposits
Leases receivable
Net pension asset
Net OPEB asset
Capital assets:

Capital assets, not being depreciated:

Land
Water rights
Construction in progress
Capital assets, being depreciated:

Source of supply
Pumping plant
Water treatment
Transmission/distribution
General plant
Equipment
Less: accumulated depreciation
Intangible asset, net
Total capital assets
Total noncurrent assets
Total assets
DEFERRED OUTFLOWS OF RESOURCES:

Deferred outflows of resources related to pensions
Deferred outflows of resources related to OPEB
Total deferred outflows of resources
See accompanying Notes to the Basic Financial Statements.

City of Lakewood
Statement of Net Position
Proprietary Fund
June 30, 2025
34 Business-Type
ActivitiesWater
Enterprise Fund
$ 20,438,561
1,114,883
1,359,286
108,259
46,477
23,067,466
63,832
851,589
25,360
94,090
100,000
1,834,586
215,573
11,647,678
5,710,419
4,852,172
34,548,038
5,884,600
16,166,263
(45,446,540)
80,226
35,593,015
36,627,886
59,695,352
1,122,462
35,995
1,158,457
(Continued)
City of Lakewood
Statement of Net Position (Continued)
Proprietary Fond
Current liabilities:

Accounts payable
Accrued liabilities
Unearned revenues

LIABILITIES
Compensated absences, due within one year
Lease payable, due within one year
Subscription liabilities, due in one year
Total c11rrent liabilities
Noncurrent liabilities:

Customer deposit
Compensated absences, due in more than one year
Lease payable, due in more than one year
Net pension liability
Total noncurrent liabilities
Totnl liabilities

DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources related to pensions
Deferred inflows of resources related to OPEB
Deferred inflows of resources related to leases
Total deferred inflows of resources

NET POSITION
Net investment in capital assets
Restricted for:

Net pension asset
Net OPEB asset
Unrestricted
Totol net position
See accompanying Notes to the Dasie Financial Statements.

Jone 30, 2025
35 Business-Type
ActivitiesWater
Enterprise Fund
$ 3,012,393
71,662
84,265
129,861
636,973
88,263
4,023,417
63,832
129,860
4,251,641
3,357,706
7,803,039
11,826,456
372,404
136,463
873,917
1,382,784
30,599,968
25,360
94,090
16,925,151
$ 47,644,569
(Concluded)
36 City of Lakewood
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Fund
For the Year Ended June 30, 2025
OPERA TING REVENUES:

Metered water sales
Reclaimed water sales
Fire protection
Service initiation and restoration charges
Other revenues
Total operating revenues
OPERATING EXPENSES:

Operations:

Supply, transmission and distribution
Customer service
Administration
Operating expenses
Depreciation and amortization
Total operating expenses

OPERATING INCOME
NONOPERATING REVENUES (EXPENSES):

Investment income
Loss on disposal of capital asset
Total nonoperating revenues (expenses)

INCOME BEFORE TRANSFERS
TRANSFERS:

Transfers in
Transfers out
Total transfers

CHANGE IN NET POSITION
NET POSITION:

Net position - beginning of year, as previously stated
Change in accounting principle (GASB 101) (Note 19)
Beginning of year, as restated
End of the year
See accompanying Notes to the Basic FinanciaJ Statements. 37 Business-Type
ActivitiesWater
Enterprise Fund
$ 14,026,015
$
652,871
160,503
64,848
228,873
15,133,110
6,964,397
585,955
941,291
267
2,469,122
10,961,032
4,172,078
695,737
(158,433)
537,304
4,709,382
26,097
(1,795,700)
(1,769,603)
2,939,779
44,709,671
(4,881)
44,704,790
47,644,569
City of Lakewood
Statement of Cash Flows
Proprietary Fund
For the Year Ended June 30, 2025
CASH FLOWS FROM OPERA TING ACTIVITIES:

Receipts from customers
Payments to suppliers
Payments to employees
Net cash provided by operating activities

CASH FLOWS FROM NONCAPITAL AND
RELATED FINANCING ACTIVITIES:

Transfers in/(out)
Net cash (used in) uoncapital financing activities

CASH FLOWS FROM CAPITAL FINANCING
ACTIVITIES:

Acquisition of capital assets
Principal paid on bonds, leases and subscription liabilities Interest paid on revenue bonds, leases and subscription liabilities Net cash (used in) capital and related financing activities CASH FLOWS FROM INVESTING ACTIVITIES:

Investment income
Net cash provided by investing activities
Net increase in cash and cash equivalents
CASH AND CASH EQUIVALENTS:

Beginning of year
End of year
CASH AND CASH EQUIVALENTS:

Cash and investments
Customer deposits
Total cash and cash equivalents
See accompanying Notes to the Basic Financial Statements. 38 Business-Type
ActivitiesWater
Enterprise Fund
$
$
$
$
15,021,315
(4,700,262)
(3,428,741)
6,892,312
(1,769,603)
(l,769,6Ql)
(370,877)
(787,273)
(166,639)
(1,324,789)
695,737
695,737
4,493,657
16,008,736
20,502,393
20,438,561
63,832
20,502,393
(Continued)
City of Lakewood
Statement of Cash Flows (Continued)
Proprietary Fund
For the Year Ended June 30, 2025

RECONCILIATION OF OPERATING INCOME TO
NET CASH PROVIDED BY OPERA TING ACTIVITIES:

Operating income
Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities:

Depreciation and amortization
Changes in assets, deferred outflows ofresources, Jiabilities, and defen-ed inflows ofresources:
(Increase) decrease in accounts receivable
(Increase) decrease in accrued revenue
(Increase) decrease in inventories
(Increase) decrease in lease receivable
(Increase) decrease in deferred outflows of resources related to pension~ Increase (decrease) in accounts payable
Increase (decrease) in accrued liabilities
Increase (decrease) in customer deposits
Increase (decrease) in unearned revenues
Increase (decrease) in compensated absences
Increase (decrease) in net pension liability
Increase (decrease) in net OPEB liability
Increase (decrease) in deferred inflows of resources related to pensions Increase (decrease) in deferred inflows of resources related to OPEB Increase (decrease) in deferred inflows of resources related to leases Total adjustments
Net cash provided by operating activities
See accompanying Notes to the Basic FinanciaJ Statements. 39 Business-Type
ActivitiesWater
Enterprise Fund
$ 4,172,078
2,469,122
319,734
(257,604)
(16,178)
45,785
280,632
760,145
(3)
5,547
(174,109)
34,098
(867,378)
41,509
201,878
(71,796)
(51,148)
2,720,234
$ 6,892,312
(Concluded)
40 FIDUCIARY FUND FINANCIAL STATEMENTS
41 42
ASSETS:

Cosh and investments
Total assets
LIABILITIES:

Due to the City ofLnkewood
Total liabilities
NET POSITION (DEFICIT):

Held in trust
Total net position (deficit)
City of Lakewood
Statement of Fiduciary Net Position
Fiduciary Fund
June 30, 2025
Sec accompanying Notes to the Basic Financial Statements. 43 Successor
Agency to the
City ofLnkewood
Redevelopment
Agency
Private Purpose
Trust Fund
$ 594,138
594,138
15,642,712
15,642,712
(15,048,574)
$ (15,048,574)
City of Lakewood
Statement of Changes in Fiduciary Net Position
Fiduciary Fund
ADDITIONS:

Redevelopment property tax trust fund
Contribution from other governments
Investment loss
Total additions
DEDUCTIONS:

Overhead
Total deductions

CHANGE IN NET POSITION
NET POSITION (DEFICIT):

Beginning of year
End of year
For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements. 44 Successor
Agency to the
City of Lakewood
Redevelopment
Agency
Private Purpose
Trust Fund
$ 227,579
(382,030)
(154,451)
172,294
172,294
(326,745)
(14,721,829)
$ (15,048,574)

NOTES TO THE BASIC FINANCIAL STATEMENTS
45 46
City of Lakewood
Index to the Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
Note 1 - Reporting Entity .................................................................................................................................... 49 Note 2 - Summary of Significant Accounting Policies ...................................................................................... 50 A. Basis of Presentation ........................................................................................................................... 50 B.

C.

D.

E.

F.

G.

H.

I.

J.

K.

L.

M.

Measurement Focus, Basis of Accounting and Financial Statements Presentation ............................ 50 Cash, Cash Equivalents, and Investments ........................................................................................... 52 Restricted Cash in Escrow ................................................................................................................... 53 Fair Value Measurement ..................................................................................................................... 53 Receivables ......................................................................................................................................... 53 Inventories ........................................................................................................................................... 53 Prepaid Items ....................................................................................................................................... 54 Interfund Transactions ......................................................................................................................... 54 Leases .................................................................................................................................................. 54 Capital Assets ...................................................................................................................................... 55 Subscription-Based Information Technology Arrangements (SBITAs) ............................................. 56 Compensated Absences ....................................................................................................................... 57 N. Pensions ............................................................................................................................................... 57

0. Other Postemploymcnt Benefits ("OPEB") Plan ................................................................................ 57 P. Long-Term Debt. ................................................................................................................................. 58 Q. Claims and Judgments ......................................................................................................................... 58 R. Deferred Outflows of Resources and Deferred Inflows of Resources ................................................ 59 S. Net Position ......................................................................................................................................... 59 T.
u.

V.

Fund Balances ..................................................................................................................................... 59 Property Taxes .................................................................................................................................... 60 Use ofEstimates .................................................................................................................................. 60 W. Implementation ofNew GASB Pronouncements ............................................................................... 61 Note 3 - Cash and Investments ............................................................................................................................ 61 A. Demand Deposits ................................................................................................................................ 61 B. Investments Authorized by the California Government Code and the City's Investment Policy .................................................................................................... 62 C. Investments Authorized by Debt Agreement ...................................................................................... 62 D. Risk Disclosures .................................................................................................................................. 63 E. Fair Value Measurement Disclosure ................................................................................................... 64 F. Investment in Local Agency Investment Fund (LAIF) ....................................................................... 64 G. Investment in California Asset Management Program ....................................................................... 65 Note 4 - Notes Receivable .................................................................................................................................... 65 Note 5 - Leases Receivable and Lease-Related Deferred Inflows of Resources .............................................. 65 A. Governmental Activities ..................................................................................................................... 66 B. Business-Type Activities ..................................................................................................................... 66 Note 6 - Interfund Transactions .......................................................................................................................... 68 A. Due From and To Other Funds ........................................................................................................... 68 B. Transfers In and Out ............................................................................................................................ 68 47 City of Lakewood
Index to the Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2025
Note 7 - Receivable from Successor Agency ...................................................................................................... 68 Note 8 - Capital Assets ......................................................................................................................................... 70 A. Governmental Activities ..................................................................................................................... 70 B. Business-Type Activities ..................................................................................................................... 71 Note 9 - Long-Te1m Liabilities ............................................................................................................................ 72 A. Governmental Activities ..................................................................................................................... 72 B. Business-Type Activities ..................................................................................................................... 73 Note 10- Defined Contribution Plan .................................................................................................................. 74 Note 11- Defined Benefit Pension Plan .............................................................................................................. 75 A. Ca!PERS Plan ...................................................................................................................................... 76 B. Retirement Enhancement Plan ............................................................................................................ 81 Note 12 - Other Postemployment Benefits ("OPED") ....................................................................................... 85 Note 13 - Deferred Compensation Plan .............................................................................................................. 90 Note 14-Liabilities, Property, and Workers' Compensation Protection ....................................................... 90 A. Description of Self-Insurance Pool Pursuant to Joint Powers Agreement. ......................................... 90 B. Primary Self-Insurance Programs of the Authority ............................................................................. 90 C. Purchased Insurance ............................................................................................................................ 91 D. Adequacy of Protection ....................................................................................................................... 92 Note 15 - Commitments and Contingencies ....................................................................................................... 92 A. Lawsuits .............................................................................................................................................. 92 B. Agreement for Allocation of Tax Increment Revenue ........................................................................ 92 C. Construction Commitments ................................................................................................................. 93 D. BKK Landfill ...................................................................................................................................... 93 Note 16 - Individual Fund Disclosures ............................................................................................................... 93 Note 17 - Net Investment in Ca11ital Assets ........................................................................................................ 94 Note 18 -Agreements with Paramount Petroleum and Station Cities Public Safety Authority ................... 94 Note 19 - Restatement of Beginning Net Position .............................................................................................. 95 48 Note 1 - Reporting Entity
City of Lakewood
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
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 City has all powers conferred npon cities by the California Constitution and general law, and it exercises those powers through a council-manager form of government. The City provides a full range of municipal services, including public safety, community development, public works, recreation and community services, and general administrative support.

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 tl1e 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 FinancingAuthority
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.

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. 49 City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
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 Focns, Basis of Acconnling and Financial Statements Presentation T11e accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fw1d 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.

T11ese 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 ofresources, liabilities, and deferred inflows of resources, including capital assets, as well as infrastructure assets, and long-term liabilities, are included in the accompanying Statement of Net Position. The Statement of Activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred.

Certain types of transactions are reported as program revenues for the City in three categories:
► Charges for services
► Operating grants and contributions
► Capital grants and contributions
Certain eliminations have been made in regards to interfund activities, payables and receivables. All internal balances in the Statement of Net Position have been eliminated except those representing balances between the governmental activities and the business-type activities, which are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities and Changes in Net Position, internal service fund transactions have been eliminated; however, those transactions between governmental and business-type activities have not been eliminated. The following interfund activities have been eliminated:
► Due to/from other funds
► Transfers in/out
50 City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
Note 2 - Summary of Significant Accounting Policies (Continued) B. Measurement Focus, Basis of Accounting and Financial Statements Presentation (Continued) Govemment 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 fw1ds are accounted for on a spending or "current financial resources" measurement focus and the modified accrual basis of accoW1ting. 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 accoW1ting 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 FW1ds:

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

The Housing Admin and Program Capital Projects Fund is used to accoW1t 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 fW1ded by the General Fund, Gas Tax Special Revenue Fund, and federal and state grants.

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. 51 City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
Note 2 - Summary of Significant Accounting Policies (Continued) B. Measurement Focus, Basis of Accounting and Financial Statements Presentation (Continued) Proprietary Fund Financial Statements (Continued)
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 repo1ted 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 fmancial 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 and is reported using the economic resources measurement focus and the accrual basis of accounting. 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 $1,181,025 for the fiscal year ended June 30, 2025.

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. 52 City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
Note 2 - Summary of Significant Accounting Policies (Continued) C. Cash, Cash Equivalents, and Investments (Continued)
Certain disclosure requirements, if applicable, for Deposits and Investment Risks in the following areas:
► Interest Rate Risk
► Credit Risk
Overall
Custodial Credit Risk
Concentration of Credit Risk
► Foreign Currency Risk
In addition, other disclosures are specified including use of certain methods to present deposits and investments, highly sensitive investments, credit quality at year-end and other disclosures.

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

E. Fair Vaine 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:

F. Receivables
► Level 1 - Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date.
► Level 2 - Inputs, other than quoted prices included in Level 1, that are observable for the assets or liabilities through corroboration with market data at the measurement date. ► Level 3 - Unobservable inputs that reflect management's best estimate of what market participants would use in pricing the assets or liabilities at the measurement date.

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.
53 City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
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 current fiscal year.

The City accounts for such items using the purchase method, under which expenditures are recognized at the time of payment and adjustments are made at year-end to record the portion applicable to future periods as an asset.

I. lnterfund Transactions
Activity between ftmds 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 ftmds" (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. 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 lea~e 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 (I) 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 ce1tain 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.
54 City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
Note 2 - Summary of Significant Accounting Policies (Continued) J. 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 (I) the discount rate it uses to discount tl1e 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 tl1e 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.

K. Capital Assets
Capital assets, which include land, site improvements, buildings and inlprovements, equipment and infrastructure assets are reported in tl1e applicable governmental or business-type activities in the accompanying goverlllllentwide statement of net position. The City defines infrastructure as the basic physical assets that allow the City to function. The assets include roads, bridges, streetlights, traffic signals and sewer lines. Each major infrastructure system can be divided into subsystems. For example, the street system can be subdivided into pavement, curbs and gutters, sidewalks, medians, streetlights, landscaping and land. These subsystems were not delineated in the basic financial statements. The appropriate operating department maintains information regarding the subsystems.

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

Donated capital assets are valued at their estimated acquisition value on the date donated. City policy has set the capitalization threshold for reporting capital assets at $5,000 for non-infrastructure assets and $25,000 for infrastructure assets. Depreciation is recorded on a straight-line basis over estimated useful lives of the assets as follows:

Buildings
Building improvements
Water and sewer lines
Roads
Vehicles
Office equipment
Computer equipment/software
Other equipment
55 50 years
30 years
50 years
30 years
7 years
7 years
5 years
7 years
City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
Note 2 - Summary of Significant Accounting Policies (Continued) K. Capital Assets (Continued)
For all infrastructure systems, the City has elected to use the basic approach for infrastructure reporting.

L. Subscription-Based Information Technology Arrangements (SBITAs) The City has a policy to recogniz.e 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 tl1e 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 SBIT A vendor at or before the commencement of the subscription term.
► Preliminary Project Stage: Outlays are expensed as incurred. ► Initial Implementation Stage: Outlays are capitalized as an addition to the subscription asset. ► Operation and Additional Implementation Stage: Outlays are expensed as incuJTed 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 I, 2022.

Subscription assets are repotted 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 detennined is reasonably certain of being exercised. In this case, the subscription asset is amortiz.ed over the useful life of the underlying IT asset.

Key estimates and judgments related to SBITA include how the City determines (1) the discount rate it uses to discount the expected subscription payments to present value, (2) subscription term, and (3) subscription payments.
► The City uses the interest rate charged by the SBIT A vendor as the discount rate. When the interest rate charged by the SBIT A vendor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for SBITA.
► The subscription term includes the noncancellable period of the SBITA. Subscription payments included in the measurement of the subscription liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise.
56 City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
Note 2 - Summary of Significant Accounting Policies (Continued) M. Compensated Absences
Compensated absences comprise vested accumulated vacation and sick leave. The City's liability for compensated absences is recorded in governmental or business-type activities as appropriate. The liability for compensated absences is determined annually. The liability fot compensated absences is recognized as leave is earned, based on the employee's pay rate in effect at the financial statement date, including any applicable salary-related costs. The liability includes only leave attributable to services already rendered and that is more likely than not to be paid.

Under GASB 101, a liability must be recognized for leave that is attributable to services already rendered, accumulates and carries forward to future periods, and is more likely than not to be used or paid. This represents a shift from previous guidance, particularly in how likelihood and eligibility are assessed.

N. 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
Measurement Date
Measurement Period
PARS
Valuation Date
Measurement Date
Measurement Period
June 30, 2023
June 30, 2024
July l, 2023 to June 30, 2024
June 30, 2023
June 30, 2025
July I, 2024 to June 30, 2025
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 amotmts 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 fmther 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.

O. 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.
57 City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
Note 2 - Summary of Significant Accounting Policies (Continued)

0. Other Postemployment Benefits ("OPEB") Plan (Continued) Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB The following timeframes are used for OPEB reporting:

Valuation Date
Measurement Date
Measurement Period
July I, 2023
June 30, 2025
July I, 2024 to June 30, 2025
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.

P. 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.

Q. 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 cmTent 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. 58 City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
Note 2 - Summary of Significant Accounting Policies (Continued) R. Deferred Outflows of Resources and Deferred Inflows of Resources The Statement and Net Position and the Balance Sheet report separate sections for deferred outflows ofresources, and deferred inflows of resources, when applicable.

Deferred Outflows o(Resources represent a consnmption ofnet assets that applies to future periods.

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

S. 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 accnmulated 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 defetTed 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.

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

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

Restricted - Restricted fund balances encompass the portion of net fund resources subject to externally enforceable legal restrictions. This includes externally imposed restrictions by creditors, such as through debt covenants, granters, contributors, laws or regulations of other governments, and restrictions imposed by law through constitutional provisions or enabling legislation. The use of proceeds from Housing Adm in 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 I 0% would trigger the use of these funds to support core city services.
59 City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
Note 2 - Summary of Significant Accounting Policies (Continued) T. Fund Balances (Continued)
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. T11e 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 Fw1d is the only fund that reports a positive unassigned fund balance an10unt. 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 amo1mts 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 fi.md balance first. Further, when the components of w1restricted 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.

U. 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 I. The County of Los Angeles, California (County) bills and collects property taxes and remits them to the City according to a payment schedule established by the County.

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

Property tax revenue is recognized in the fiscal year for which the taxes have been levied, provided the taxes are received within 60 days after the end of the fiscal year. Property taxes received after this date are not considered available as a resource that can be used to finance the current year operations of the City and, therefore, are not recorded as revenue until collected. No allowance for doubtful accounts was considered necessary.

V. Use of Estimates
The preparation of basic fmancial 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.
60 City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
Note 2 - Summary of Significant Accounting Policies (Continued) W. Implementation of New GASB Pronouncements
GASB Statement No. 101 - In June 2022, GASB issued Statement No. 101, Compensated Absences. The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. Implementation of this Statement resulted in restatement of beginning net position on July I, 2024 presented in Note 19.

GASB Statement No. 102 - In December 2023, GASB issued Statement No. 102, Certain Risk Disclosures. The objective of this Statement is to provide users of government financial statements with essential information about risks related to a government's vulnerabilities due to certain concentrations or constraints which may limit a government's ability to acquire resources or control spending. The City has evaluated its exposure to financial risk stemming from concentrations and constraints. Management has determined that no concentration exists for the fiscal year ended June 30, 2025.

Note 3 - Cash and Investments
At June 30, 2025, cash and cash investments are classified in the accompanying financial statements as follows:

GovernmentWide Statement
of Net Position
Unrestricted assets:

Cosh and investments $ 155,282,124
Restricted assets:

Investment in escrow 10,648,964
Cash held by City 63,832
Total cash and investments $ 165,994,920
At June 30, 2025, cash and investments consisted of the following:

A. Demand Deposits
Deposits with financiaJ institution
Petty cash
Investments
Tota) cash and investments
Fiduciary
Fund Statement
of Net Position
$ 594,138
$ 594,138
$ 7,667,989
2,700
158,918,369
$ 166,589,058
Total
$ 155,876,262
10,648,964
63,832
$ 166,589,058
The carrying amount of the City's cash deposits were $7,667,989 at June 30, 2025. Bank balances before reconciling items were $8,222,303 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. 61 City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
Note 3 - Cash and Investments (Continued)
A. Demand Deposits (Continued)
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 Goven1111ent 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.

Authorized Investment Type
United States Treasury Bills, Bonds and Notes
United States Government Sponsored Enterprise Securities Municipal Obligations
Negotiable Certificates of Deposit
Placement Service Deposits
Money Market Funds
Government Pools
Local Agency Investment fund (LA!f)
Los Angeles County Pooled Fund
Commercial paper
Corporate Notes
Supranationals
Asset-Backed Securities
NIA - Not Applicable
C. Investments Authorized by Debt Agreement
Maximum
Maturity
5 Years
5 Years
5 Years
5 Years
NIA
NIA
NIA
NIA
NIA
270 days
5 Years
5 Years
5 Years
Maximum Maximum
Percentage Investments in
Allowed One Issuer
None None
None None
None None
30% None
30% None
20% 10%
None None
None None
None None
25% None
30% None
30% None
20% None
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.
62 City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
Note 3 - Cash and Investments (Continned)
D. Risk Disclosures
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.

Information about the sensitivity of the fair values of the City's investments (including investments held by bond trustee) to market interest rate fluctuations is provided by the following table that shows the distribution of the City's investments by maturity:

Remaining Maturity (In Months)
12 Months 13-24 25-36 37-48 49-60
Investment Type or Less Months Months Months Months Total Local Agency Investment Fund $ 4,024,294 $ $ $ $ $ 4,024,294 Money Mark et Fund 660,203 660.203
United States treasury notes 3,775,778 6,745,110 3,608,486 2,706,985 16,836,359 United States government-sponsored
agency securities 1,497,808 1,296,756 4,192,828 6,987,392 Municipal bonds 265,000 197,878 91,318 101,301 655,497
Supra-notional agency notes 611,250 611,250
CAMP cash reserve portfolio 102,117,420 102,117,420
European agency bond/note 862,889 862,889
Corporate medium-term notes 1,092,184 4,836,354 3,708,214 5,877,349 15,514,101 Restricted investment hel<l by escrow 10,648,964
Total $ 107,066,917 $ 8,037,787 $ 12,969,538 $ 11,610,829 $ 8,584,334 $ 158,918,369 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, 2025 for each investment type:

Fair Value Minimum
as of L"1"1 Not
Investment Type June 30, 2025 Rating AAA AA A Rated
Locol Agency Investment Fund $ 4,024,294 NIA $ $ $ $ 4,024,294 Money Mark et Fund 660,203 NIA 660,203
United States treasury notes 16,836,359 NIA 16,836,359
United States government-sponsored
agency securities 6,987,392 NIA 6,987,392
Municipal bonds 655,497 AA 655,497
Supra-national ogency notes 611,250 AA 611,250
CAMP cash reserve portfolio 102,117,420 A 102,117,420
European agency bond/note 862,889 A 862,889
Corporate medium-term notes 15,514,101 A or A-* 6,438,097 1,554,801 7,521,203 Restricted investment held by escrow 10,648,964 NIA 10,648,964 Totnl $ 158,918,369 $ 125,391,876 $ 9,808,940 $ 8,384,092 $ 15,333,461 NIA- Not Applicable
*Purchases are limited to securities rated in a rating category of"A" for long- term or "A-" for short term. 63 City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
Note 3 - Cash and Investments (Continued)
D. Risk Disclosures (Continued)
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, 2025.

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 !bat are in the possession of an outside party. All securities, with the exception ofLAIF and other pooled investments, are held by a third-party custodian.

E. Fair Value Measurement Disclosure
F.

At June 30, 2025, investments are reported at fair value. The following table presents the fair value measurement of investments on a recurring basis and tbe levels within GASB 72 fair value hierarchy in which the fair value measurements fall at June 30, 2025:

Measurement Input
Quoted Prices
in Active Markets Significant
for Identical Other Observable
Investment Type Assets (Level I) Inputs (Level 2) Uncategorized Totul Local Agency Investment Fund $ $ $ 4,024,294 $ 4,024,294 Money Market Fund 660,203 660,203
United States treasury notes 16,836,359 16,836,359
United States government-sponsored
agency securities 6,987,392 (I) 6,987,392
Municipal bonds 655,497 (I) 655,497
Supra-national agency notes 611,250 (I) 611,250
CAMP cash reserve portfolio 102,117,420 102,117,420
European agency bond/note 862,889 (I) 862,889
Corporate medium-term notes 15,514,101 ( I) 15,514,101
Restricted investment held by escrow 10,648,964 10,648,964 Total $ 16,836,359 $ 24,631,129 $ 106,801,917 $ 158,918,369 (IJ Institutional Bond Quotes - evaluations based on various market and industry inputs.

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 tbe Treasurer of the State of California. As of June 30, 2025, tbe City had $4,024,294 invested in LAIF. 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. 64 City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
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 ofJune 30, 2025, the City had $102,117,420 invested in CAMP.

Note 4- Notes Receivable
At June 30, 2025, notes receivable consisted of the following:

Governmental
Activities
Housing Rehabilitation and Deferred Loan Programs $ 2,756,767 Total notes receivable $ 2,756,767
The loans were originally funded through two programs:

Redevelopment Agency Housing Set-Aside Loans - Loans made from the former Redevelopment Agency's low- and moderate-income housing 20% set-aside funds. Upon dissolution of the Redevelopment Agency on February 1, 2012, the City accepted responsibility as the Successor Housing Agency, and the loans were transferred to the Housing Admin and Program Capital Projects Fund. The balance of these loans was $2,286,077 at June 30, 2025.

Community Development Block Grant (CDBG) Loans - Loans funded through the City's CDBG and U.S. Department of Housing and Urban Development (HUD) programs to assist low- and moderate-income homeowners with property rehabilitation. Since I-IUD retains a claim to any remaining program funds, these amounts are reported as notes receivable and classified as restricted fund balance. The principal balance outstanding at June 30, 2025 was $470,690.

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 I to 3 5 years. The interest rates used calculated the net present value of the lease receivable ranged from 1 % to 2.445%.

For the fiscal year ended June 30, 2025, the City recognized $259,655 in lease revenue and $26,062 in interest revenue, and the outstanding net present value of the lease receivable amount is $1,835,234. 65 City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
Note 5 - Leases Receivable and Lease-Related Deferred Inflows ofResonrces (Continued) A. Governmental Activities
B.

A summary of changes in lease receivable for the governmental activities for the year ended June 30, 2025 is as follows:

Amounts Amounts
Balance Balance due within due in more
July I, 2024 Addition Reductions Jw,e 30, 2025 one year than one year $ 1,142,907 $ $ (205,739) $ 937,168 $ 218,529 $ 718,639 At June 30, 2025, the required payments for these leases, including interest, are:

NPVleases Total lease
receivables Interest payments
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 135,856 2,570 138,426
2031 - 2034 183,268 1,301 184,569
Total $ 937,168 $ 28,779 $ 965,947
At June 30, 2025, the amounts reported as deferred inflows of resources related to leases will be recognized as lease revenue as follows:

Year Ending
June 30, Amount
2026 $ 186,438
2027 131,247
2028 131,247
2029 131,247
2030 131,247
2031-2034 174,997
Total $ 886,423
Business-Type Activities
A summary of changes in lease receivable for the business-type activities for the year ended June 30, 2025 is as follows:

Amounts Amounts
Balance Balance due within due in more
July I, 2024 Addition Reductions June 30, 2025 one year than one year $ 943,851 $ $ (45,785) $ 898,066 $ 46,477 $ 851,589
66 City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
Note 5- Leases Receivable and Lease-Related Deferred Inflows ofResonrces (Continued) B. Business-Type Activities (Continued)
At June 30, 2025, the required payments for these leases, including interest, are:

NPVleoses Total lease
receivables Interest payments
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 49,349 10,280 59,629
2031-2035 193,149 41,284 234,433
2036 - 2040 93,522 31,283 124,805
2041 - 2045 93,945 24,471 118,416
2046 - 2050 101,257 17,159 118,416
2051- 2055 109,138 9,278 118,416
2056 - 2058 67,544 1,531 69,075
Total $ 898,066 $ 183,640 $ 1,081,706
At June 30, 2025, the amounts reported as deferred inflows of resources related to leases will be recognized as lease revenue as follows:

Year Ending
June 30, Amount
2026 $ 51,147
2027 51,147
2028 51,147
2029 51,147
2030 51,147
2031 - 2035 217,786
2036 - 2040 107,976
2041 - 2045 91,199
2046 - 2050 91,199
2051 - 2055 91,199
2056 - 2058 18,823
Total $ 873,917
67 City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
Note 6 - Interfund Transactions
A. Due From and To Other Funds
At June 30, 2025, the City has the following due from and to other funds:

Due To
Other Funds
Nonmajor
~----D_u_e_F_• r_om_O_t_h_e_r_F_un_d_s ____ ~I Governmental Funds Governmental Funds:

General Fund $ 574,341
These interfund balances represent routine short-term cash flow assistance.

B. Transfers In and Out
During the year ended June 30, 2025, the City had the following transfers in and transfers out:

Transfers In
Governmental Proprietary
Funds F11nds
Nonmajor Special
Tmnsfel's Out General Fund Revenue Funds Water Fund
Govemmental Funds:

General Fund $ $ $ 26,097
Housing Adm.in and Capital Projects Fund 349,999
Nonmajor Special Revenue Funds 2,363,660 97,567
E11terprise Fund:

Water 1,795,700
Total $ 4,509,359 $ 97,567 $ 26,097
= =
Transfers provided funding for capital projects, capital acquisitions, and debt service.

Note 7 - Receivable from Successor Agency
At June 30, 2025, the receivables from Successor Agency are as follows:

HousingAdmin
and Program
Capital
General Fund Projects Fund Total
Inter-Agency Loan $ 11,401,778 $ 2,850,444 $ 14,252,222 10-Year Interfund Loao 90,491 90,491
5-Year Loan 214,689 214,689
Housing Set-Aside Fund 1,085,310 1,085,310
$ 11,401,778 $ 4,240,934 $ 15,642,712
68 Total
$ 26,097
349,999
2,461,227
1,795,700
$ 4,633,023
City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
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 LAJF 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 Ftmd.

At June 30, 2025, the total principal and interest due to the City General Fund and Housing Admin & Program Capital Projects Fund were in the amow1t of$11,401,778 and $2,850,444, 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 Fw1d 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, 2025 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, 2025 was $214,689. The liability side of this loan was transferred to the Successor Agency and the asset side was transferred to the Housing Adm in & 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 IX26, 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. 69 Note 8 - Capital Assets
City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
A. Governmental Activities
A summary of changes in capital assets of the governmental activities for the year ended June 30, 2025 is as follows:

Balance Capitalized/ Balance
July I, 2024 Additions Deletions Transfer June 30, 2025 Capital assets, not being depl'eciated:

Lm1d $ 17,041,023 $ $ $ $ 17,041,023
Construction in progress 44,251,612 6,268,940 (6,104,343) 44,416,209 Total capital assets, not being depreciated 61,292,635 6,268,940 (6,104,343) 61,457,232 Capital nssets, being depreciated:

Structures/building<;, and improvements 56,102,998 2,799,470 6,104,343 65,006,811 Equipment 12,372,727 1,147,875 (624,450) 12,896,152
Infrastructure/street 162,178,372 269,227 162,447,599
Total cHpitnl assets, being deprecioted 230,654,097 4,216,572 (624,450) 6,104,343 240,350,562 Less accumulated depreciation for:

Structures/building., and improvements (31,399,553) (1,467,709) (75,886) (32,943,148) Equipment (8,582,262) (845,799) 624,450 (65,194) (8,868,805) Infrnstructure/street (125,858,198) (2,852, 149) 141,080 (128,569,267) Total occumuhltcd depreciation (165,840,013) (5,165,657) 624,450 (170,381,220) Total ca11ital 11ssets1 being dep1•eciatcd, net 64,814,084 (949,085) 6,104,343 69,969,342 Intangible assets, being amortized:

Rigpt to use - leased infrastructure 205,182 205,182
Right to use - subscription asset 225,275 225,275
Total lease assets 430,457 430,457
Less accumulated amortization for:

Right to use - leased infrastructure (131,080) (44,985) (176,065) Right to use - subscription asset (115,647) (69,615) (185,262) Totol accumulated amortizotion (246,727) (114,600) (361,327) Total intangible assets, being om011ized, net 183,730 (114,600) 69,130 Governmental activities capital assets, net $126,290,449 $ 5,205,255 $ $ $ 131,495,704 Depreciation and amortization expenses were charged to City functions/programs as follows:

General g:ivemment $ 663,360
Public safety 74,785
Transportation 266,355
Community development 27,065
Culture and leisure 1,281,943
Unallocated depreciation for infrastructure 2,852,149
Lease assets amortization 44,985
Subscription assets amortization 69,615
Total depreciation/amortization expense - governmental nctivities $ 5,280,257 70 City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
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, 2025 is as follows:

Balance Capitalized/ Balance
July !, 2024 Additions Deletions Transfer June 30, 2025 Capital assets, not being depreciated:

Lund $ 100,000 $ $ $ $ 100,000
Water rights 1,834,586 1,834,586
Constmction in progress 144,937 173,526 (102,890) 215,573 Tot11l capital assets, not being depreciated 2,079,523 173,526 (102,890) 2,150,159 Capital assets, being depreciated:

Source of supply 11,647,678 11,647,678
Pumping plant 5,710,419 5,710,419
Water treatment 4,852,172 4,852,172
Transmission/disttibution 34,548,038 34,548,038
General plant and equipment 21,846,222 197,351 (95,600) 102,890 22,050,863 Total capital assets, being depreciated 78,604,529 197,351 (95,600) 102,890 78,809,170 Less accumulated depreciation for:

Source of supply (4,193,563) (322,143) (4,515,706)
Pumping plant (781,312) (163,899) (945,211)
Water treatment (4,413,429) (228,571) (4,642,000)
Transmission/distribution (24,270,044) (857,317) (25,127,361) General plant and equipment (9,575,118) (736,744) 95,600 (10,216,262) Total accumulated depreciation (43,233,466) (2,308,674) 95,600 (45,446,540) Total capital assets, being depreciated, net 35,371,063 (2,111,323) 102,890 33,362,630 Intangible assets, being amortized:

Right to use - subscription asset 561,570 561,570
Total lease assets 561,570 561,570
l.ess accumulated amortization for:

Right to use - subscription asset (320,896) (160,448) (481,344) Total accumulated amortization (320,896) (160,448) (481,344) Total intangible assets, being amortized, net 240,674 (160,448) 80,226 Business-type activities capital assets, net $ 37,691,260 $ (2,098,245) $ $ $ 35,593,015 Depreciation and amortization expenses was charged to the Water Enterprise Fund as below:

Business-type activity:

Water $ 2,469,122
Total depl'eciation nnd amortization expense - business-type activities $ 2,469,122 71 City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
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, 2025 is as follows:

Balance
July 1, 2024 Balance Due within Due in More
(As restated) Additions Deletions June 30, 2025 One Year Than One Year Gove1·nmental Activities:

Direct Borrowing:

Capital financing program $ $ 10,500,000 $ $ 10,500,000 $ $ 10,500,000 Lease payable 60,475 (51,890) 8,585 8,585
Subscription liabilities 91,337 (73,259) 18,078 18,078
Compensated absences 2,129,336 110,045 • 2,239,381 1,119,691 1,119,690 Total gove1·nmental activities $ 2,281,148 $ 10,610,045 $ (125,149) $ 12,766,044 $ 1,146,354 $ 11,619,690 • The change in the compensated absences liability is presented as a net change. !;aoital Financing Program
In December 2024, the City entered into a Lease Purchase Agreement with TD Equipment Finance, Inc. to finance energy-efficiency improvements at various City facilities, including heating, ventilation and air-conditioning systems, lighting, controls, and related electrical work. Under the agreement, the lessor deposited $10,500,000 into an escrow fund to reimburse eligible project costs.

The financing bears interest at 4.00%. Rental payments are due annually beginning in December 2026 and continuing through 2035. Total principal to be repaid is $10,500,000 and total scheduled interest is $2,943,455, for total payments of $13,443,455. The annual debt service payment is $1,344,345. The City has the option to prepay the agreement in whole at any time at a purchase price equal to 1 OJ% of the outstanding principal plus accrued interest. Principal and interest payments to maturity at June 30, 2025 are as follows:

Year Ending
June 30 Principal Interest Total
2026 $ $ $
2027 504,345 840,000 1,344,345
2028 944,519 399,826 1,344,345
2029 982,300 362,045 1,344,345
2030 1,021,592 322,753 1,344,345
2031-2035 5,754,604 967,124 6,721,728
2036 1,292,640 51,707 1,344,347
$ 10,500,000 $ 2,943,455 $ 13,443,455
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 Jnne 30, 2025, the outstanding balance of the leases is $8,585. Principal and interest payments to maturity at Jnne 30, 2025 are as follows:

Year Ending
June 30, Principal Interest Total
2026 $ 8,585 $ 81 $ 8,666
$ 8,585 $ 81 $ 8,666
72 City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
Note 9 - Long-Term Liabilities (Continued)
A. Governmental Activities (Coutiuned)
Subscription Liabilities
The City entered into subscription agreements with various vendors for software. The terms of the agreements are ranging from 36 months to 42 months. The calculated interest rates range from 2.445% to 2.796%. The future subscription payments are as follows:

B. Business-Type Activities
Year Ending
June 30,
2026 $
$
Principal
18,078 $
18,078 $
Interest Total
129 $ 18,207 ---~-- 129 $ 18,207
=====
Summary of changes in long-term liabilities for business-type activities for the year ended June 30, 202S is as follows:

Balance
July 1, 2024 Balance
(As restated) Additions Deletions June 30, 2025
Business-Type Activities:

Direct Borrowing:
2017 Master equipment fmancing
purchase agreement $ 5,506,717 $ $ (618,103) $ 4,888,614 Subscription 1iabilities 257,433 (169,170) 88,263
Compensated absences 225,623 34,098 • 259,721
Total business-type activities $ 5,989,773 $ 34,098 $ (787,273) $ 5,236,598 * The change in the compensated absences liability is presented as a net change. 2017 Master Equipment Financing Purchase Agreement
Due within Due in More
One Year Than One Year
$ 636,973 $ 4,251,641
88,263
129,861 129,860
$ 855,097 $ 4,381,501
Ou May 23, 2017, the City entered a $8,965,667 Master Financing 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 financing purchase are due annually each June 13 and December 13, commencing June 13, 2018. The future annual required lease payments at June 30, 202S, are as follows:

Year Ending
June 30 Principal Interest Total
2026 $ 636,973 $ 143,336 $ 780,309
2027 656,420 123,890 780,310
2028 676,460 103,850 780,310
2029 697,112 83,198 780,310
2030 718,394 61,915 780,309
2031-2032 1,503,255 57,363 1,560,618
$ 4,888,614 $ 573,552 $ 5,462,166
73 City of Lakewood
Notes to the Basic Financial Statements (Continned)
For the Year Ended June 30, 2025
Note 9 - Long-Term Liabilities (Continued)
B. Business-Type Activities (Continued)
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:

Yeur Ending
June 30, Principal Interest Total
2026 $ 88,263 $ 631 $ 88,894
$ 88,263 $ 631 $ 88,894
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 61 employees covered by the plan for the year ended June 30, 2025. 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, 2025, there were 63 employees covered by the plan and the employer contributions totaled $54,489.

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 VOY A. 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, 2025, there were 191 employees covered by the plan and the employer contributions totaled $355,117.
74 City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
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, 2025 are as follows:

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

Pension contributions after measurement date
CalPERS $ 6,916,578 $ 768,509 $ 7,685,087
Change in assumptions:

Ca!PERS 611,847 67,983 679,830
PARS 72,426 8,047 80,473
Total change in assumptions 684,273 76,030 760,303
Difference between expected and actual experience
CalPERS 578,838 64,315 643,153
Difference in projected and actual earnings on
pension investments:

Ca!PERS 1,922,470 213,608 2,136,078
Total deferred outflows of resources $ l0,I02,159 $ l, 122,462 $ ll,224,621 Net pension liabilities (assets):

CalPERS $ 30,219,358 $ 3,357,706 $ 33,577,064
PARS (228,239) (25,360) (253,599)
Deferred inflows of resources:

Difference between expected and actual experience
CalPERS $ 2,297,511 $ 255,279 $ 2,552,790
PARS 181,788 20,198 201,986
Total difference between expected
and actual experience 2,479,299 275,477 2,754,776
Difference in projected and actual earnings on
pension investments:

PARS 872,345 96,927 969,272
Total deferred inflows of resources $ 3,351,644 $ 372,404 $ 3,724,048 Pension Expense:

CalPERS $ 4,465,062 $ 496,117 $ 4,961,179
PARS (437,509) (48,612) (486,121)
Total pension expense (credit) $ 4,027,553 $ 447,505 $ 4,475,058 75 City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
Note 11 -· Defined Benefit Pension Plan (Continned)
A. CalPERS Plan
General Information abont 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 salruy for each completed year of current service, up to a maximmn 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.
76 City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
Note 11 - Defined Benefit Pension Plan (Continued)
A. CalPERS Plan (Continued)
General Iuformation about the Pensiou Plan (Continued)
Employees Covered by Benefit Terms
At June 30, 2023, the valuation date, the following employees were covered by the benefit terms:

Active employees
Transferred and temiinated employees
Retired employees and beneficiaries
288
440
287
Total 1,015
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 rep01ting period ended June 30, 2025, the classic active employee contribution rates was 7.00% of annual pay, the PEPRA active employee contribution rate was

7.75% of annual pay, and the required employer contribution rates were 9.62% of the annual payroll.

Net Pension Liability
Actuarial Methods and Assumptions Used to Determine Total Pension Liabili(y The June 30, 2023 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:

Discount Rate
Inflation
Salary Increases
Mortality Rate Table1
Post Retirement Benefit Increase
Entry Age Actuarial Cost Method

6.90%

2.30%
Varies by Entry Age and Service
Derived using CalPERS' Membership Data for all Funds.

The lesser of contract COLA or 2.30% until Purch~ing Power Protection Allowance floor on purchasing power applies, 2.30% thereafter.
1 The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 Ca/PERS "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.

Change o(Assumptions
In 2024, there were no changes of assumptions.
77 City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
Note 11 - Defined Benefit Pension Plan (Continued)
A. CalPERS Plan (Continued)
Net Pension Liability (Continued)
Long-term Expected Rate o(Return
The long-term expected rate ofreturn 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 Cla<1s 1 Allocation Real Return 1
•
2 Global Equity - Cap-weighted 30.00% 4.54%
Global Equity - Non-Cap-weighted 12.00% 3.84%
Private Equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed Securities 5.00% 0.50%
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 of2.30% used. 2 Figures m·e 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.

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.
78 City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
Note 11- Defined Benefit Pension Plan (Continued)
A. CalPERS Plan (Continued)
Amortization of Deferred Outflows and Deferred Inflows of Resonrees (Continued) 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.

Increase (Decrease)
Total Pension Phm Fiduciary Net Net Pension
Linbility Position Liability
(a) (b) (c) = (a)- (b)
Balance at June 30. 2023 (Valuation Date) $ 168,320,790 $ 127,452,303 $ 40,868,487 Changes Recognized for the Measurement Period:

Service Cost 3,106,616 3,106,616
Interest on the total pension liability 11,176,888 11,176,888 Difference between expected and actual experience (3,311,075) (3,311,075) Contributions from the employer 4,959,045 (4,959,045)
Contributions from employees 1,442,673 (1,442,673)
Net investment jncome 11,965,842 (11,965,842)
Benefit payments, including refunds of employee
contributions (9,158,279) (9,158,279)
Administrative expense (103,708) 103,708
Net changes during July I, 2023 to June 30, 2024 1,814,150 9,105,573 (7,291,423) Balance at June 30, 2024 (Measurement Date) $ 170,134,940 $ 136,557,876 $ 33,577,064 == =
Sensitivity ofthe 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 I percentage-point lower (5.90%) or I percentage-point higher (7.90%) than the current rate:

Plan's Net Pension Liability/(Asset)
Discount Rate - 1 %
(5.90%)
$ 55,602,445
Pension Plan Fiduciary Net Position
Current Discount
Rate (6.90%)
$ 33,577,064
Discount Rate+ 1 %
(7.90%)
$ 15,382,034
Detailed information about the plan's fiduciary net position is available in the separately issued CalPERS financial report.
79 City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
Note 11 - Defined Benefit Pension Plan (Continued)
A. CalPERS Plan (Continued)
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 expense of$4,961,l 79.

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

Deferred Outnows Deferred Inflows
of Resources of Resources
Contributions made after the measurement date $ 7,685,087 $ Change in assumptions 679,830
Difference between expected and actual experience 643,153 (2,552,790) Net difference between projected and actual earning5 on pension plan investments 2,136,078
Total $ 11,144,148 $ (2,552,790)
The amounts above are net of outflows and inflows recognized in the 2023-2024 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, 2024 is 3.4 yeal"S, which was obtained by dividing the total service years of 3,416 (the sum ofremaining service lifetimes of the active employees) by 1,015 (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 $7,685,087 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, 2025 will be recognized as a reduction of the net pension liability in the year ending June 30, 2026. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in future pension expense as follows:

Deferred
Outnows/(Inflows)
Year Ending of Resources
June 30 Miscellaneous Plan
2026 $ (144,053)
2027 2,588,294
2028 (881,138)
2029 (656,832)
2030
Thereafter
Total $ 906,271
80 City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
Note 11- Defined Benefit Pension Plan (Continued)
B. Retirement Enhancement Plan
General Information about the Pension Pinn
Plan Description
The City provides a 401(a) defined benefit retirement enhancement plan under the terms of a Memorandnm 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 40l(a)(l 7) 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 armuity.

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:

Contributions
Active employees
Terminated employees
Retired employees and beneficiaries
Total
71 28
90 189
Employees contribute 3.00% of compensation of which the City picks-up 0.13%. The employer contributed $638,656 during the year ended June 30, 2025.
81 City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
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, 2023 valuation was rolled forward to determine the June 30, 2025 total pension liability, based on the following actuarial methods and assumptions:

Actuarial Cost Method
Actuarial Assumptions:

Investment Return
Inflation
Payroll Growth
Salary Increases
Cost of Living Adjustment
Withdrawal/Disability
Mortality
Retirement
Maximum Benefits and Salary
Form of payment
Change o(Assumptions
Entry Age Normal

5.50%

2.30%

2.80%
Consistent with the rates used to value the CalPERS Miscellaneous Public Agency Pension Plans (Entry Age 20) as of June 30, 2021.

2.00%
Consistent with the Non-Industrial Rates used to value the Ca!PERS Miscellaneous Public Agency Pension Plans ofter June 30, 2021.

Consistent with the Non-Industrial rates used to value Ca!PERS M iscelluneous Public Agency Pension Plans after June 30, 202 l.

Rates are based on Ca!PERS rates for 20 years of service retirement for Miscellaneous Public Agency "2.5% at 5511 Pension .Plans. with increased rates of 30% at ages 60 and 62 and 50% ut age 65. Rates are one-half the CalPERS rates for ages 55-59 for the deferred retirement benefit.

Sa1ary used in the calculation of fina1 average compensation is subject to the limitations of!RC 40\(a)(l7). The limit is assumed to increase

2.30% per annum.

Single Life Annuity
There were no changes in assumptions during the measurement period June 30, 2025. The inflation rate used changed from 2.5% to 2.3% from June 30, 2021 valuation to July 1, 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 o(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. 82 City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
Note 11 - Defined Benefit Pension Plan (Continued)
B. Retirement Enhancement Plan (Continued)
Net Pension Liability (Continued)
Long-Term Expected Rate o{Return (Continued)
The table below reflects long-term expected real return adjusted for inflation by asset classes:

Asset Class Index
USCash BAML 3-Month T-Bills
US Corporate Bonds Bloomberg US Corp Bond TR USD
US High Yield Bonds ICE BofA US High Yield TR USD
US Large Cap Equity S&P 500 TR USD
US Small Cap Equity Russell 2000 TR USD
foreign Developed Equity MSC! EAFE NR USD
Emerging Markets Equity MSC! EM NR USO
USREITs FTSE Nareit All Equity RE!Ts TR USD
Infrastrncture - Public S&P Globul Infrastructure TR USD Assumed Inflation - Mean
Assumed Inflation - Standard Deviation
Portfolio Real Mean Return
Portfolio Nominal Mean Return
Portfolio Standm-d Deviation
City's Long-Term Expected Rate of Return
Changes in Net Pension Liability
Long-Term Long-Term
Expected Expected
Arithmetic Geometric
Real Rate Reul Rnte
Allocation of Return ofRetmn

2.00% 0.83% 0.80%

44.50% 2.91% 2.65%

3.50% 4.03% 3.48%

28.50% 5.39% 3.78%

1.50% 6.80% 4.22%

11.25% 6.61% 4.79%

3.75% 8.78% 5.73%

2.50% 6.71% 4.46%

2.50% 5.68% 4.18%
100.00%

2.28% 2.28%

1.47% 1.47%

4.47% 3.86%

6.75% 6.25%

10.55%

5.50%
The following table shows the changes in net pension liability recognized over the measurement period.

Increase (Decrease)
Total Pension Plan Fiduciary Net Net Pension
Liability Position Liability/(Asset)
(a) (b) (c) = (a)- (b)
Balance at June 30, 2024 $ 24,350,141 $ 23,221,392 $ 1,128,749 Changes Recognized for the Measurement Period:

Service cost 347,558 347,558
Interest on the total pension liability 1,331,021 1,331,021 Benefit payments (1,008,124) (1,008,124)
Emp Joy er contributions 638,656 (638,656)
Member contributions 190,052 (190,052)
Net investment income 2,317,496 (2,317,496)
Administrative expense (85,277) 85,277
Net changes during July I, 2024 to June 30, 2025 670,455 2,052,803 (1,382,348) Bulanee at June 30, 2025 (Measurement Date) $ 25,020,596 $ 25,274,195 $ (253,599) 83 City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
Note 11 - Defined Benefit Pension Plan (Continued)
B. Retirement Enhancement Plan (Continued)
Changes in Net Pension Liability (Continued)
Sensitivity ofthe 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 I percentage-point lower (4.50%) or I 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 $ 2,844,681 $ (253,599) $ (2,851,573) 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, 2025, the City incurred a pension credit of $486,121.

As of measurement date of June 30, 2025, the City has deferred outflows and deferred inflows of resources related to pensions as follows:

Deferred Outflows
of Resources
Deferred Inflows
of Resources
Changes of assumptions $ 80,473 $
Difference between expected and actual experience
Net difference between projected and actual earning, on pension p Ian investments
(201,986)
(969,272)
Totn! $ 80,473 $ (1,171,258)
============
The amounts above are net of outflows and inflows recognized in the 2024-2025 measurement period expense.

Amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized iu future pension expense as follows:

Deferred
Year Ending Outllows/(Inflows)
June 30 of Resources
2026 $ 131,649
2027 (552,041)
2028 (459,150)
2029 (211,243)
2030
Thereafter
Total $ (1,090,785)
84 City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
Note 12 - Other Postemployment Benefits ("OPEB")
At June 30, 2025, net OPEB asset and related deferred outflows and inflows of resources are as follows:

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

Change in assumptions $ 270,911 $ 26,793 $ 297,704
Difference between expected and actual experience 93,045 9,202 102,247 Total deferred outflows of 1·esources $ 363,956 $ 35,995 $ 399,951 Net OPEB Assets: $ (951,355) $ (94,090) $ (1,045,445)
Defel'red inflows of resources:

Difference between expected and actual experience $ 1,115,928 $ 110,366 $ 1,226,294 Net difference between projected and actual earning;
on O PEB p Ian investment 263,867 26,097 289,964
Total deferred inflows of resources $ 1,379,795 $ 136,463 $ 1,516,258 OPEB Expe11se (Credit) $ 330,892 $ 32,726 $ 363,618
Plan DescriJ.!_tion
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 ($158 and $157 per month in calendar year 2025 and 2024, 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 IO years of which are immediately prior to retirement with the City of Lakewood as a regular full-time employee.
85 City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
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 I, 2014 and January I, 2015, the 2019 limits are $564 and $306. For those retiring between January 1, 2015 and January I, 2016, the 2019 pre-65 limit is $542 per month. For those retiring between January 1, 2016 and January I, 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 I, 2018 and January I, 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 I, 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 I, 2023, the date of the latest actuarial valuation, membership in the plan consisted of the following:

Contributions
Inactive p Ian members or beneficiaries currently
receiving benefit pay men ts
Active p Ian members
Total
94 184
278
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 $442,753 and $257,392, respectively.

Net OPEB (Asset)
The City's net OPEB asset was measured as of June 30, 2025 and the total OPEB liability used to calculate the net OPEB asset was determined by an actuarial valuation as of July I, 2023. Standard actuarial update procedures were used to project/discount from valuation to measurement dates. 86 City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
Note 12 - Other Postemployment Benefits ("OPEB") (Continued) Net OPEB (Asset) (Continued)
Actuarial Assumptions
The total OPEB liability in the July I, 2023 was determined using the following actuarial assumptions and other inputs, applied to all periods included in tbe measurement, unless otherwise specified:

Inflation rate
Salary increases
Discount rate
Investment rate of return
Healthcare cost trend rate

2.50%

3.00%

6.00%

6.00%, net ofOPEB plan investment expense

5.20 percent for 2025 through 2034; 5.00 percent for 2035 through 2049; 4.50 percent for 2050 through 2064; and 4.00 percent for 2065 and later yew_.s,
Mortality rates were based on the most recent CalPERS experience study. The actuarial assumptions used in tbe July 1, 2023 valuation were based on an actuarial experience study and a review of plan experience during the period July I, 2021 to June 30, 2023.

Discount Rate
GASB 75 requires the use of a discount rate that considers the availability of tbe OPEB plan's fiduciary net position associated with tbe OPEB of current active and inactive employees and the investment horizon oftbose resomces.

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 tbe long-term expected rate ofreturn.

The long-term expected rate of return on O,PEB 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 tbe long-tenn expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Tiie target allocation and best estimates of real rates of return for each major asset class, based on published capital market assumptions, are summarized in tbe following table:

Assumed Asset Real Rate of
Asset Class Allocation Rctum
Board U.S. Equity 50.00% 5.30%
U.S. Fixed 50.00% 0.90%
87 City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
Note 12 - Other Postemployment Benefits ("OPEB") (Continued) Net OPEB Liability /Continued)
Investment Rate o(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:

Asset Class
Cash
Fixed Income
Equity
Stated
Range
0-20%
40%-60%
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
Increase (Decrease)
Total OPEB Plan Fiduciary Net NetOPEB
Liability Position Liability/(Asset)
(a) (b) (c) = (a)- (b)
Balance at July I, 2024 $ 12,491,563 $ 12,871,884 $ (380,321) Changes Recognized for the Measurement Period:

Service cost 498,977 498,977
Interest on the total OPEB liability 758,734 758,734
Contributions from the employer 700,145 (700,145)
Benefit payments, including refunds of employee 1,290,553 (1,290,553) contributions (700,145) (700,145)
Administrative expense (67,863) 67,863
Net Changes during July I, 2024 to June 30, 2025 557,566 1,222,690 (665,124) Balance at June 30, 2025 (Measurement Date) $ 13,049,129 $ 14,094,574 $ (1,045,445) Sensitivity o[the Net OPEB (Asset) to Changes in the Discount Rate The following presents the net OPEB asset of the City, as well as what the City's net OPEB liability (asset) would be if it were calculated using a discount rate that is I-percentage point lower or I -percentage-point higher than the current discount rate:

Plan's Net OPEB Liability/(Asset)
Discount Rate - 1 %
(5.00%)
$ 627,769
Current Discount
Rate (6.00%)
$ (1,045,445)
88 Discount Rate+ 1%
(7.00%)
$ (2,457,044)
City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
Note 12 - Other Postemployment Benefits ("OPEB") (Continued) Change in the Net OPED Liability (Continued)
Sensitivity ofthe Net OPEB (Asset) to Changes in the Healthcare Cost Trend Rates The following presents the net OPEB asset of the City, as well as what the City's net OPEB liability (asset) would be if it were calculated using healthcare cost trend rates that ru·e I -percentage-point lower or 1-percentagepoint higher than the current healthcare cost trend rates:

Plan's Net OPED Liability/(Asset)
1% Decrease
(4.20% current,

3.00% ultimate)
$ (2,596,713)
Healthcnl'e Cost
Tr·end Rates
(5.20% current,

4.00% ultimate)
$ (1,045,445)
Trend Rate + 1 %
(6.20 current,

5.00% ultimnte)
$ 835,059
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended June 30, 2025, the City' recognized OPEB expense of $363,618. At June 30, 2025, 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 Resoul'ces
Changes of assumptions $ 297,704 $
Difference between expected and actual experience 102,247 (1,226,294) Net difference between projected and actual earnin~ on
pension p Ian investments (289,964)
Total $ 399,951 $ (1,516,258)
The difference between projected OPEB plan investment earnings and actual eru·nings 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, 2025.

Amounts reported as deferred inflows of resources related to OPEB will be recognized as future OPEB expense as follows:

Deferred
0 utllows/(Inflows)
Year Ending of Resources
June 30 OPEBPla11
2026 $ 206,730
2027 (347,424)
2028 (371,292)
2029 (248,707)
2030 (158,634)
Thereafter (196,980)
Total $ (1,116,307)
89 City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
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 ("!RC") 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 197 8. 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 goverrunent exposures. (I) 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.
90 City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
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 govermnent exposures. (I) 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 fast 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 2024-25 the Authority's pooled retention is $1 million per occurrence, with reinsurance to statut01y 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 stonn 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 prope11y insurance protection in the amount of $120,976,555. 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$51,961,787. There is a deductible of 5% per unit of value with a minimum deductible of$100,000.
91 City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
Note 14 - Liabilities, Property, and Workers' Compensation Protection (Continued) C. Purchased Insnrance (Continued)
Crime lnsnrance
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 Sheriffs Department for liability insurance. The term of the original agreement was from July 1, 2019 through June 3 0, 2024 and agreement was renewed in 2025 and may be extended for successive years. The total premium paid during the fiscal year ended June 30, 2025 was $1,382,299.

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 2024-2025.

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 pmt of the agreement, the Agency is required to reimburse the Consolidated Fire Protection District of Los Angeles County I 7.26% 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, 2025, the Agency's outstanding deferral balm1ce is $756,943.
92 City of Lakewood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
Note 15 - Commitments and Contingencies (Continued)
C. Construction Commitments
The City had outstanding construction commitments in the amount of $17,358,368 as of June 30, 2025 as follows:

D. BKK Landfill
Govel'nmental Funds:

General Fund
Lakewood Capital Improvements Capital Projects Fund
Nonmajor Governmental Fund
Proprietary Fund:

Water Enterprise Fund
Total
$ 14,528,818
475,227
1,459,546
894,777
$ 17,358,368
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, 2025, are as follows:

Governmental Funds:

Prop A Recreation Special Revenue Fund $ (25,032)
CA Natural Resources Agem,-y Grant Special Revenue Fund (539) Fiduciary Fund:

Successor Agency Private Purpose Trust Fund $ (15,048,574) The Governmental Funds' deficits are primarily the result of the unavailability of certain revenues at June 30, 2025 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.
93 City of Lakewood
Notes to the Basic Financial Statements
For the Year Ended Jnne 30, 2025
Note 17 - Net Investment in Capital Assets
The following is the calculation of net investment in capital assets at June 30, 2025:

Capital assets, net of accumulated depreciation/amortization Plus: unspent bond proceed
Less: outstanding principal on capital related debts
Less: retention payable
Less: capital assets related accounts pay able
Net investment in capital assets
Governmental
Activities
$ 131,495,704
10,648,964
(10,526,663)
(237,189)
(1,039,843)
$ 130,340,973
Business-Type
Activities
$ 35,593,015
(4,976,877)
(16,170)
$ 30,599,968
Note 18 - Agreements with Paramonnt Petroleum and Station Cities Public Safety Authority Agreement with Paramount Petroleum
In 1992 the City and Paramount Petroleum Corporation entered into an agreement that allowed Paramotmt 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 baITel water tanks and a petroleum pumping station. The agreement established a I 5-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.! (g) allowing Paramount Petroleum to operate an additional IO years, ending in January 2017. The agreement also allowed for automatic two-year extensions, with the current extension valid through December 2025.

Joint Powers Agreement - Station Cities Public Safety Authority Effective January I, 2025, the City, together with the Cities of Bellflower and Paramount, formed the Station Cities Public Safety Authority ("SCPSA") under a Joint Powers Agreement pursuant to Government Code Section 6500 et seq. SCPSA was established to improve public safety. It also exists to advance other public safety purposes, including securing federal, state, and county funding. Each member contributed $10,000 during fiscal year 2024-25 for initial administrative costs.

SCPSA is a legally separate entity, and its debts and obligations are not those of the member cities unless specifically assumed. Ongoing budget contributions and participation in its activities will be determined annually beginning in fiscal year 2025-26. SCPSA is considered a blended component tmit of the City, as the City's Council serves as part of the governing board and SCPSA's operations are financially interdependent with the City. 94 City of Lakewood
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
Note 19 - Restatement of Beginning Net Position
Implementation ofGASB Statement No. 101, Compensated Absences Effective for the fiscal year ended June 30, 2025, the City implemented GASB Statement No. 101, Compensated Absences. This statement establishes accounting and financial reporting standards for compensated absences, including vacation, sick leave, and other paid time off. The implementation of GASB 10 I resulted in a change in accounting principle, and prior year amounts have been restated accordingly.

Under GASB 10 I, a liability must be recognized for leave that is attributable to services already rendered, accumulates and carries forward to future periods, and is more likely than not to be used or paid. This represents a shift from previous guidance, particularly in how likelihood and eligibility are assessed. The effect of the restatement is as shown below:

Governmental Business-Type
Activities Activities
Beginning net position, as previously reported $ 240,557,740 $ 44,709,671 Change in accounting principal:

GASB IOI - Compensated Absences (113,255) (4,881)
Beginning net position, as restated $ 240,444,485 $ 44,704,790 95 96

REQUIRED SUPPLEMENTARY INFORMATION
(UNAUDITED)
97 98
City of Lakewood
Required Supplementary Information (Unaudited)
Notes to the Budgetary Comparison Schedules
For the Year Ended June 30, 2025
Budget and Budgetary Accounting
The City follows these procedures iu establishing the budgetary data reflected in the financial statements:

I. 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 Prop A Incentive NTD 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, 2025, 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.
99 City of Lakewood
Required Supplementary Information (Unaudited)
Budgetary Comparison Schedule - General Fund
For the Year Ended June 30, 2025
Original Final Variance with
Bud~et Bud~et Actual Final Budget
REVENUES:

Taxes $ 46,281,780 $ 45,526,000 $ 44,723,747 $ (802,253) Licenses and permits 2,137,800 2,093, l00 2,442,507 349,407 Fines and forfeitures 649,IO0 679,163 735,077 55,914
Investment income, rents and concession 4,606,550 6,241,555 7,221,177 979,622 Intergovernmental revenues 12,290,800 12,515,382 12,518,824 3,442 Current service charges 9,981,000 l0,620,040 10,766,933 146,893 Other 1,802,050 1,870,088 1,853,171 (16,917)
Total revenues 77,749,080 79,545,328 80,261,436 716,108 EXPENDITURES:

Current:

General government 14,428,707 17,793,097 16,647,565 1,145,532 Public safety 21,958,185 21,835,921 21,266,046 569,875
Transportation 4,985,892 5,185,355 4,523,479 661,876
Community development 11,871,241 11,542,530 9,670,490 1,872,040 Health and sanitation 7,623,863 7,470,929 7,418,814 52, I 15 Culture and leisure 14,516,142 14,647,424 14,063,894 583,530 Capital outlay:

General government 230,800 124,505 44,928 79,577
Public safety 180,000 335,000 59,776 275,224
Transportation 475,000 3,514,840 967,407 2,547,433
Community development
Culture and leisure 208,100 29,876,506 3,937,653 25,938,853 Debt service:

Principal retirement 125,149 125,149 125,149
Interest and fiscal charges 2,582 2,582 2,582
Total expenditures 76,605,661 112,453,838 78,727,783 33,726,055

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 1,143,419 (32,908,510) 1,533,653 34,442,163 OTHER FINANCING SOURCES (USES):

Transfers in 4,274,200 4,524,777 4,509,359 (15,418)
Transfers out (26,097) (26,097)
Proceeds from issuance of debt 10,500,000 10,500,000
Procees from sale of properties 5,000 30,000 71,388 41,388 Total other finnncing sources (use) 4,279,200 15,054,777 15,054,650 (127) NET CHANGE IN FUND BALANCE $ 5,422,619 $ (17,853,733) 16,588,303 $ 34,442,036 FUND BALANCE:

Be ginning of year 98,972,686
End ofyenr $ 115,560,989
IOI
City of Lakewood
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios For the Year Ended June 302 2025
Last Ten Fiscal Yeors
California Public Employees' Retirement System Defined Benefit Plan Measurement period 2014-15 2015-16 2016-17 2017-18
Tob,I pension liability
Service cost $ 2,028,208 $ 2,109,082 $ 2,355,437 $ 2,527,432 Interest 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 aud actual experience (2,731,071) (2,102,094) (581,254) 738,883 Benefit payments, including
refunds of employee contributions (4,981,710) (5,258,099) (5,386,901) ( 6,182,947) Net clrnnge in total pension liability 608,966 3,221,397 12,203,022 5,642,832 Total pension liability - beginning 113,819,356 114,428,322 117,649,719 129,852,741 Total pension liability- ending (a) $ 114,428,322 $ 117,649,719 $ 129,852,741 $ 135,495;573 Pension fiduciffry net position
Contributions - employer $ 1,871,751 $ 2,717,060 $ 2,344,596 $ 2,573,441 Contributions - employee 939,852 1,051,966 1,098,583 1,161,949 Net investment income 2,111,030 554,532 10,269,191 8,596,094 Benefit payments, including
refunds of employee contributions (4,981,710) (5,258,099) (5,386,901) ( 6, I 82,947) Net plan to plun 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) (991,640) 8,188,606 5,692,534 Plan fiduciary net position - beginning 93,854,960 93,690,326 92,698,686 I 00,887,292 Plan fiduciary net position - endine (b)2 $ 93,690,326 $ 92,698,686 $ 100,887,292 $ 106,579,826 Pinn net pension liability - ending (a)- (b) $ 20,737,996 $ 24,951,033 $ 28,965,449 $ 28,915,747 Plan fiduciary net position as a percentage 81.88% 78.79% 77.69% 78.66% of the total pension liability
Covered Payrolf $ 15,213,079 $ 16,033,770 $ 16,036,475 $ 16,673,912 Plan net pension lh1bility
as a percentage of covered payroll 136.32% 155.62% 180.62% 173.42% 2018-19
$ 2,573,466
9,686,135
2,203,972
(7,031,685)
7,431,888
135,495,573
$ 142,927,461
$ 2,938,083
1,045,867
6,920,916
(7,031,685)
(76,058)
248
3,797,371
106,579,826
$ 110,377,197
$ 32,550,264

77.23%
$ 16,911,782
192.47%
1 During Fiscal Year 2017-18, as a result of Governmental Accounting Standards Doard Statement (GASB) No. 75, Accounting and Financial Reporting for Postemployment Benefit Plans Other than Pensions (GASD 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, CotPERS recorded a correction to previously reported financial statements to properly reflect its proportionate share of activity related to pensions in accordance with GASD Statement No. 68, Accounting and Financial Reporting for Pensions (GASB 68). 2 Includes any beginning of year adjustment. 3 Includes one year's payroll grow th using 2.80% payroll grow th assumption for fiscal years ended in 2022 and 2024; 2.75% payroll grow th assumption for fiscal yeors ended in 2018 through 2021; 3.00% payroll growth assumption for fiscal years ended in 2014 through 2017.

Notes to Schedule:

Changes of Benefit Tenns: 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 occurrc1 afier 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, SD 1168 increased the standard retiree lump sum death benefit from $500 to $2,000 for any death occurring on or after July I, 2023. The impact, if any, is included in the changes of benefit terms.

Changes of Assumptions: There were no assumption changes in 2023 or 2024. Effective with the June 30, 2021, valuation date (June 30, 2022, measurement date), the accounting discount rate wns reduced from 7.15% to 6.90%. In detennining the long-term expected rate of return, Ca!PERS took into account long-term market return expectations as well as the expected pension fund cash flows. In addition, demographic assumptions and the price inflation assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate w,is 'l.15% for measurement dates June 30, 2017, through June 30, 2021, and 7.65% for measurement dates June 30, 2015, through June 30, 2016. 102
City of Lakewood
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios (Continued) For the Year Ended June 30 2025
Last Ten Fiscal Years
California Public Employees' Retirement System Defined Benefit Plan (Conthmed) Measurement period 2019-20 2020-21 2021-22 2022-23 2023-24 Total pension liability
Service cost $ 2,616,888 $ 2,546,101 $ 2,973,011 $ 2,934,655 $ 3,106,616 Interest 10,069,685 10,347,723 10,555,722 11,040,943 11,176,888 Changes of benefit terms 184,767
Changes of assumptions 4,758,807
Differences between expected and actual experience 335,690 (949,532) (1,508,930) 1,561,945 (3,311,075) Benefit payments, including
refunds of employee contributions (7,473,686) (8,152,296) (8,045,870) (8,402,294) (9,158,279) Net change in total pension liability 5,548,577 3,791,996 8,732,740 7,320,016 1,814,150 Total pension liability - beginning 142,927,461 148,476,038 152,268,034 161,000,774 168,320,790 Total pension liability - ending (n) $ 148,476,038 $ 152,268,034 $ 161,000,774 $ 168,320,790 $ 170,134,940 Pension fiduciary net position
Contributions - employer $ 3,476,806 $ 3,879,340 $ 4,405,183 $ 4,722,046 $ 4,959,045 Contributions - employee 1,304,659 1,183,929 1,227,185 1,240,587 1,442,673 Net investment income 5,455,014 25,307,127 (10,131,229) 7,521,280 11,965,842 Benefit payments, including
refunds of employee contributions (7,473,686) (8,152,296) (8,045,870) (8,402,294) (9,158,279) Net plan to plan resource movement
Administrative expense (155,605) (112,865) (84,153) (90,052) (103,708) Other Miscellaneous Income/(Expense)1
Net change in plan fiduciary net position 2,607,188 22,105,235 (12,628,884) 4,991,567 9,105,573 Plan :fiduciary net position - beginning 110,377,197 112,984,385 135,089,620 122,460,736 127,452,303 Plan fiduciary net position - endin~ (b/ $ 112,984,385 $ 135,089,620 $ 122,460,736 $ 127,452,303 $ 136,557,876 Plan net pension liability - ending (a) - (b) $ 35,491,653 $ 17,178,414 $ 38,540,038 $ 40,868,487 $ 33,577,064 Plan fiduciary net position as n percentage 76.10% 88.72% 76.06% 75.72% 80.26% of the total pension liability
Covered Payroll3 $ 17,025,948 $ 16,695,742 $ 17,813,128 $ 17,721,348 $ 18,816,572 Plan net pension liability
as a perc.entage of covered payroll 208.46% 102.89% 216.36% 230.62% 178.44% 103
City of Lakewood
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios (Continued) For the Year Ended June 30, 2025
Last Ten Fiscnl Years
Public Agency Retirement System Defined Benefit Plan
Measurement period 2015-16 2016-17 2017-18 2018-19
Total pension linbility
Service cost $ 522,429 $ 538,102 $ 447,262 $ 513,290
Interest 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 (417,601) (493,769) (611,458) (753,088) Net change in total pension liability 3,406,978 1,146,336 2,181,426 944,981 Total pension liobility - beginning 14,664,922 18,071,900 19,218,236 21,399,662 Total pension liability - ending (a) $18,071,900 $19,218,236 $21,399,662 $22,344,643 Pension fiducinry net position
Contributions - employer $ 54,800 $ 597,130 $ 568,494 $ 644,970 Contributions - employee 281,187 272,183 243,461 224,569 Net investment income, net of investment expenses (8,365) 1,290,294 878,414 954,443 Benefit payments, including
refunds of employee contributions (417,601) (493,769) (611,458) (753,088) Administrative expenses (25,243) (23,4812.. (32,057) (25,249) Net change in plan fiduciary net position (115,222) 1,642,355 1,046,854 1,045,645 Plan fiduciary net position - beginning 12,769,050 12,653,828 14,296,183 15,343,037 Pinn fiduciary net position - ending (b) $ 12,653,828 $14,296,183 $15,343,037 $16,388,682 Plan net pension liability (asset)- ending (a)- (b) $ 5,418,072 $ 4,922,053 $ 6,056,625 $ 5,955,961 Plan fiduciary net position as a percentage 70.02% 74.39% 71.70% 73.35% of the total pension liability (asset)
Covered payroll $ 11,643,566 $11,992,873 $ 9,975,323 $ 8,214,154 Net pension liability (asset) as a percentage of covered pnyroll 46.53% 41.04% 60.72% 72.51% 2019-20
$ 410,916
1,231,314
(134,572)
55,742
(746,009)
817,391
22,344,643
$23,162,034
$ 708,372
221,930
575,483
(746,009)
(30,561)
729,215
16,388,682
$ 17,117,897
$ 6,044,137

73.90%
$ 8,440,043

71.61%
This schedule is presented to illustrate the requirement to show info1mation for IO years. However, recalculations of prior years are not required, and if prior ye11rs are not reported in accordance with the current GASB standards, they should not be reported. 104
City of Lakewood
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios (Continued) l<'or the Year Ended June 30, 2025
Last Ten Fiscal Years
Public Agency Retirement System Defined Benefit Plan (Continued) Measurement period 2020-21 2021-22 2022-23 2023-24
Total pension liability
Service cost $ 422,216 $ 364,553 $ 374,578 $ 338,091
Interest 1,275,638 1,319,474 1,263,556 1,299,653
Changes of benefit terms
Differences between expected and actual experience (1,804,110) (281,900) Changes of assumptions 195,433
Benefit payments, including
refunds of employee contributions (792,274) (895,425) (918,195) (973,181) Net change in total pension liability 905,580 (1,015,508) 719,939 578,096 Total pension liability - beginning 23,162,034 24,067,614 23,052,106 23,772,045 Total pension liability - ending (a) $24,067,614 $23,052, I 06 $23,772,045 $24,350,141 Pension fiduciary net position
Contributions - employer $ 828,452 $ 925,173 $ 924,177 $ 1,549,054 Contributions - employee 214,864 221,400 198,880 197,304 Net investment income, net of investment expenses 3,871,904 (2,755,385) 1,439,405 2,367,091 Benefit payments, including
refunds of employee contributions (792,274) (895,425) (918,195) (973,181) Administrative expenses (72,882) (78,117) (72,436) (76,314) Net change in plan fiduciary net position 4,050,064 (2,582,354) 1,571,831 3,063,954 Plan fiduciary net position - beginning 17,117,897 21,167,961 18,585,607 20,157,438 Plan fiduciary net position - ending (b) $21,167,961 $18,585,607 $20,157,438 $23,221,392 Plan net pension liability (asset) - ending (n) - (b) $ 2,899,653 $ 4,466,499 $ 3,614,607 $ 1,128,749 ----- Plan fiduciary net position as a percentage 87.95% 80.62% 84.79% 95.36% of the total pension liability (asset)
Covered payroll $ 7,789,532 $ 7,789,532 $6,783,311 $7,041,948 Net pension liability (asset) os a percentage of covered payroll 37.22% 57.34% 53.29% 16.03% 105
2024-25
$ 347,558
1,331,021
(1,008,124)
670,455
24,350,141
$25,020,596
$ 638,656
190,052
2,317,496
(1,008,124)
(85,277)
2,052,803
23,221,392
$25,274,195
$ (253,599)
101.01%
$6,891,304
-3.68%
Actuarially determined contribution
Contributions in relation to the
City of Lakewood
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions
For the Year Ended June 30, 2025
Last Ten Fiscal Yeal's1
Cnlifornin Pul>Iic Employees' Retirement System Defined'Benefit Plan 2015-16 2016-17 2017-18
$ 2,136,551 $ 2,344,596 $ 2,573,441
2018-19 2019-20
$ 2,938,083 $ 3,476,806
actuarially determined contribution2 (2,717,060) (2,344,596) (2,573,441) (2,938,083) (3,476,806) Contribution deficiency (excess) $ (580,509) $ $ $ $
Covered payroll3 $ 16,033,770 $ 16,036,475 $ 16,673,112 $ 16,911,782 $ 17,025,948 Contributions as a percentage of covered payrolt3 16.95% 14.62% 15.43% 17.37% 20.42% 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.
2 Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions. 3 Includes one year's payroll growth using 2.80% payroll growth assumption for fiscal year ended June 30, 2022 through 2024; 2.75% payroll growth assumption for fiscal years ended June 30, 2018-21 ;3.00% payroll growth assumption for fiscaJ years ended June 30, 2014-17.

Notes to Schedule:

The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2023-24 were derived from the June 30, 2021 funding valuation rep01t.

Methods and assumptions used to determine contribution rates:

Actuarial cost method
Amortization method
Asset valuation method
[nflation
Salary increases
Payroll Growth
Investment rate of return
Retirement age
Mortality
Entry Age Normal
For details, see June 30, 2021, funding valuation report.

Fair Value of Assets. For details, see June 30, 2021, funding valuation report.

2.30%
Varies by entry age and service

2.80%

6.80% Net of pension plan investment and administrative expenses; includes Inflation.

The probabilities of retirement are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions.

The probabilities of mortality are based on the 2021 CalPERS Experience Study for the period from 1997 to 2015. Mortality rates incorporate full generational mortality improvement using 80% of Scale J\1P-2020 published by the Society of Actuaries. 106
City of Lakewood
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions (Continued)
For the Year Ended June 30 2025
Last Ten Fiscal Years
California Public Employees' Retirement System Defined Benefit Plan (Continued) 2020-21 2021-22 2022-23 2023-24
Actuarially determined contribution $ 3,879,340 $ 4,405,183 $ 4,722,046 $ 4,959,045 Contributions in relation to the
actuorially determined contribution2 (3,879,340) (4,405,183) (4,722,046) (4,959,045) Contribution deficiency (excess) $ $ $ $
Covered payroll3 $ 16,695,742 $ 17,813,128 $ 17,721,348 $ 18,816,572 Contributions as a percentage of covered payroll" 23.24% 24.73% 26.65% 26.35% 107
2024-25
$ 5,685,087
(7,685,087)
$ (2,000,000)
$ 19,343,436

39.73%
City of Lakewood
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions (Continued)
For the Year Ended June 30, 2025
Last Ten Fiscal Years
Public Agency Retirement System Defined Benefit Plan
2015-16 2016-17 2017-18 2018-19 2019-20
Actuarially determined contribution $ 874,736 $ 594,125 $ 493,923 $ 814,859 $ 660,417 Contributions in relation to the
actuarially determined contribution (54,800) (54,800) (568,494) (644,970) (708,372) Contribution deficiency ( excess) $ 819,936 $ 539,325 $ (74,571) $ 169,889 $ (47,955) Covered payroll $ 11,643,566 $ 11,992,873 $ 9,975,323 $ 8,214,154 $ 8,440,043 Contributions as a percentage of covered payroll 0.47% 0.46% 5.70% 7.85% 8.39% 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 m·e not reported in accordance with the current GASB standards, they should not be reported.

Notes to Schedule:

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

Actuarial cost method
Amortization method
Remaining amot1ization periodat June 30, 2023
Inflation
Payroll growth
Investment rate of return
Salary increases
Cost of Living Adjustment
Withdraw/Disability
Mortality
Retirement age
Maximum Benefits and Salary
Form of Payment
Enl!y Age Normal
Level Dollar, Closed
13 Years

2.30%

2.80%

5.50%
Consistent with the rates used to value the CalPERS Miscellaneous Public Agency pension plans (Entry Age 20) at June 30, 2021. Annual increase from 10.44% to

3.50% 3.6% at 30+ year of service.

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

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

Rates are based on CalPERS rates for 20 years of service retirement for Miscellaneous Public Agency 11 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 ofIRC 40l(a)(l7). The limit is assumed to increase 2.30% per annum.

Single Life Annuity
108
Actuarially determined contribution
Contributions in relation to the
City of Lakewood
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions (Continued)
For the Year Ended June 30 2025
Last Ten Fiscal Years
Public Agency Retirement System Defined Benefit Phrn (Continued) 2020-21 2021-22 2022-23
$ 816,996 $ 754,027 $ 338,440
actuarially determined contribution (828,452) (925,173) (924,177) Contribution deficiency (excess) $ (11,456) $ (171,146) $ (585,737) Covered payroll $ 7,789,532 $ 8,003,744 $ 6,783,311
Contributions as a percentage of covered payroll 10.64% 11.56% 13.62% 109
2023-24 2024-25
$ 295,241 $ 624,621
(1,549,054) (638,656)
$ (1,253,813) $ (14,035)
$ 7,041,948 $ 6,891,304

22.00% 9.27%
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 2025
Last Ten Fiscal Years
Other Postem11loyment Benefits Plan
Measurement period 2017-18 1 2018-19 2019-20 2020-21 2021-22 Total OPED 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 OPED liability 477,246 404,490 1,345,129 507,079 (551,692) Total OPEB liability - beginning 9,767,059 10,244,305 10,648,795 11,993,924 12,501,003 Total OPED liability- ending (a) $ I 0,244,3 05 $10,648,795 $ 11,993,924 $ 12,501,003 $ I 1,949,311 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 phm fiduciary net position 527,285 603,325 336,952 2,255,620 (1,671,311) Pinn fiduciary net position - beghining 8,750,403 9,277,688 9,881,013 10,217,965 12,473,585 Plan fiduciary net position - ending (b) $ 9,277,688 $ 9,881,013 $ 10,217,965 $ 12,473,585 $ I 0,802,274 Pinn net OPED liability (asset)- ending (n)- (b) $ 966,617 $ 767,782 $ 1,775,959 $ 27,418 $ 1,147,037 Plan fiduciary net position ns o percentage 90.56% 92.79% 85.19% 99.78% 90.40% of the total OPED liability (asset)
Covered employee payroll $ 12,097,503 $13,157,503 $ 12,916,288 $14,121,769 $ 13,948,556 Pinn net OPED liability (asset) as a perce11tnge
of covered employee payroll 7.99% 5.84% 13.75% 0.19% 8.22% 1 Historica1 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.
110
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, 2025
Last Ten Fiscal Yenrs
Other Postemployment Benefits Plan (Continued)
Measurement period
Total OPEB liability
Service cost
Interest
Changes of benefit terms
Differences between expected and actual experience
Changes of assumptions
Benefit payments, including refunds of employee contributions Net change in total OPEB liability
Total OPEB liability - beginning
Total OPEB liability - ending (a)
Plan fiduciary net position
Contributions - employer
Net investment income
Benefit payments, including refunds of employee contributions Administrative expense
Net change in plan fiduciary net position
Plan fiduciary net position - beginning
Pinn fiduciary net position - ending (b)
Plan net OPEB liability (asset) - ending (a)- (b)
Plan fiduciary net position as a pe1·centage
of the total OPEB liability (asset)
Covel'ed employee payroll
Plan net OPEB linbility (asset) as a percentage
of covered employee payroll
111
2022-23
$ 407,536
721,812
(662,941)
466,407
11,949,311
$ 12,415,718
$ 662,941
820,756
(662,941)
(57,968)
762,788
10,802,274
$ 11,565,062
$ 850,656

93.15%
$ 13,194,612

6.45%
2023-24 2024-25
$ 485,386 $ 498,977
726,032 758,734
(475,187)
(660,386) (700,145)
75,845 557,566
12,415,718 12,491,563
$ 12,491,563 $ 13,049,129
$ 660,386 $ 700,145
1,368,573 1,290,553
(660,386) (700,145)
(61,751) (67,863)
1,306,822 1,222,690
11,565,062 12,871,884
$ 12,871,884 $ 14,094,574
$ (380,321) $ (1,045,445)
103.04% 108.01%
$ 14,549,535 $16,527,190
-2.61% -6.33%
City of Lakewood
Required Supplementary Information (Unaudited)
Schedule of Contributions - Other Postemployment Benefits For the Year Ended June 30, 2025
Last Ten Fiscal Years
Other Postemployment Benefits Plan
Fiscal year 2017-18 1 2018-19 2019-20
Actuarially determined contribution $ 373,794 $ 385,009 $ 402,839 $ Contributions in relation to the
actuarially determined contribution (417,410) (525,242) (514,369) Contribution deficiency (excess) $ (43,616) $ (140,233) $ (111,530) $ 2020-21
414,924
(524,546)
(109,622)
Covered employee payroll $ 12,097,503 $ 13,157,503 $ 12,916,288 $ 14,121,769 Contributions as a percentage of covered employee payroll 3.45% 3.99% 3.98% 3.71% 2021-22
$ 364,789
(592,348)
$ (227,559)
$ 13,948,556

4.25%
1 Historical information is presented only for measurement periods for which GASB 75 is applicable. Additional years 1 information will be displayed as it becomes available.

Notes to Schedule:

Valuation date
Reporting period
Measurement period
Actuarial cost method
Amortization method
Amortization period
Asset valuation method
Inflation
Salary increases
Investment rate of return
Healthcare cost trend rates
Mortality
July 1, 2023
July 1, 2024 to June 30, 2025
July I, 2024 to June 30, 2025
Entry age
Level percentage of payroll, closed
30 years
Market value

2.50%

3.00%

6.00 ¾, net of OPEB pion 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 Based on the most recent experience study for CalPERS members. 112
City of Lakewood
Required Supplementary Information (Unaudited)
Schedule of Contributions - Other Postemployment Benefits (Continued) For the Year Ended June 30 2025
Last Ten Fiscal Years
Other Postemployment Benefits Plan (Continued)
Fiscal year 2022-23 2023-24
Actuarially determined contribution $ 375,733 $ 534,594 Contributions in relation to the
actuarially determined contribution (662,941) (660,386) Contribution deficiency (excess) $ (287,208) $ (125,792) Covered employee payroll $ 13,194,612 $ 14,549,535
Contributions as a percentage of covered employee payroII 5.02% 4.54% 113
2024-25
$ 550,632
(700,145)
$ (149,513)
$ 16,527,190

4.24%
11 4

SUPPLEMENTARY INFORMATION
115
11 6
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, 2025
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Investment income, rents and concession $ 150 $ 150 $ 76,406 $ 76,256 Other income 185,000 355,000 333,000 (22,000)
Total reve1111es 185,150 355,150 409,406 54,256
EXPENDITURES:

Current:

Public safety 294,900 294,898 2
Community development 377,000 448,262 447,213 1,049
Total expenditures 377,000 743,162 742,111 1,051

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (191,850) (388,012) (332,705) 53,205 OTHER FINANCING (USES):

Transfers out (349,999) (349,999)
Total other finnncing (uses) (349,999) (349,999)
NET CHANGE IN FUND BALANCE $ (191,850) $ (738,011) (682,704) $ 53,205 FUND BALANCE:

Beginning of year 9,238,724
End of year $ 8,556,020
117
City of Lakewood
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Lakewood Capital Improvements Capital Projects Fund
REVENUES:

Intergovernmental revenues
Total revenues
EXPENDITURES:

Capital outlay:

Transportation
Culture and leisure
Totnl expenditures

NET CHANGE IN FUND BALANCE
F'UND BALANCE:

Beginning of year
End of year
For the Year Ended June 30, 2025
Original
Budget
$ 2,243,900
2,243,900
$
Final
Budget
2,243,900
2,243,900
7,950,512
1,999,925
9,950,437
$ 2,243,900 $ (7,706,537)
118
Actual
$ 1,558,767
1,558,767
1,979,857
1,979,857
Variance with
Final Budget
$ (685,133)
(685,133)
5,970,655
1,999,925
7,970,580
(421,090) $ 7,285,447
3,147,804
$ 2,726,714

NONMAJOR GOVERNMENTAL FUNDS
Nonmajor Special Revenue Funds:

Special Revenue Fnnds are nsed to acconnt for taxes and other revenues set aside in accordance with the law or administrative regulations for a specific purpose.

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.

CA Natural Resources Agency Grant Fund - To accom1t for the San Martin Park Improvement Project for a new Tot Lot Playground and two new picnic shelters.

Community Development Illock Grant ("CDBG") Fund - To account for funds received from the U.S. Department of Housing and Urban Development for use in community development projects.

JAG Grant Fnnd - To account for receipts and expenditures of federal grants to support a broad range of activities to prevent and control crime and to improve the criminal justice systems.

LA County Measure M Fund - To account for Los Angeles County special 1/2 cent sales tax approved pursuant to SB767 which was approved by the METRO Board of Directors on June 23, 2016 and approved by the voters of Los Angeles County on November 8, 2016. These funds may be used to improve transportation and transit service and ease traffic congestion consistent with the Measure M Ordinance #16-01.

Measure R Fund - To account for Los Angeles County special 1/2 cent transportation sales tax which became effectively July 1, 2009. These funds may be used only for certain transportation purposes.

Measure W llund - To account for funding allocated by the Los Angeles County Flood Control District to support projects that increase stofl1lwater and urban runoff capture, improve water quality, and reduce storm water and urban nmoff pollution.

State Grant Fund - To account for funding received from the State of California, Department of Parks and Recreation for the Weingart Senior Center Project. This grant supports public works improvements within the City, including planning, design, and construction activities associated with the project.

Miscellaneous Grants Special Revenue Fund - To account for multiple special revenue such as(]) 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) Ca!Recycle-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.

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.

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.
119

NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)
Nonmajor Special Revenue Funds (Continued):

Prop A Transit Fund - To account for Los Angeles County special 1/2 cent transportation sales tax which became effective July I, 1982. These funds may be used only for ce1tain transportation purposes.

Prop A Incentive NTD Fund - To account for incentive revenues received from the Los Angeles County Metropolitan Transportation Authority under the National Transit Database (NTD) program.

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 (PLI-IA) program to provide a source of funding for cities and counties to help increase the availability of affordable homes.

Road Maintenance and Rehab Account Fund - To account for transportation taxes from the Road Repair and Accountability Act of 2017 (SB I Beall) to be used for local streets and roads and other transportation uses. The source of the revenue are:(!) 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 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.

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.

Used Oil Grant Fund - To account for funding received from California Integrated Waste Management for permanent and sustainable used oil recycling programs.
120
City of Lakewood
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
Sj!ecial Revenue Funds
Beverage CA Natural
Container Recycle Resources
AB2766 Grant Agency Grant CDBG JAG
ASSETS
Cash and investments $ 138,150 $ 54,869 $ $ 173,876 $
Accounts receivables 27,903 52,076
Notes receivable 470,690
Total assets $ 166,053 $ 54,869 $ $ 696,642 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable $ $ 100 $ $ 14,626 $
Retention payable 9,000
Due to other funds 539 354,498
Unearned revenue
Total liabilities 100 539 378,124
Deferred Inflows of Resources:

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

Rest1icted for:

Public safety
Transportation 166,053
Community development 318,518
Health and sanitation 54,769
Culture and leisure
Unassigned (deficit) (539)
Total fund balances (deficit) 166,053 54,769 (539) 318,518 Total liabilities, deferred inflows of
resources nnd fund balances $ 166,053 $ 54,869 $ $ 696,642 $ (Continued)
121
City of Lakewood
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2025
Special Revenue Funds
LA County Miscellaneous Open
Measure M Measure R Measure W Grants Space
ASSETS
Cash and investments $ 7,029,512 $ 5,886,683 $ 4,428,284 $ 83,755 $ Accounts receivables 902,900 134,304
Notes receivable
Total assets $ 7,029,512 $ 5,886,683 $ 5,331,184 $ 218,059 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable $ 102,335 $ 701 $ 6,359 $ 10,693 $
Retention payable
Due to other funds
Unearned revenue
Total liabilities 102,335 701 6,359 10,693
Deferred Inflows of Resources:

Unavailable revenues 902,900 124,912
Totnl deferred inflows of l'esources 902,900 124,912
F'und Balances (Deficit):

Restricted for:

Public safety
Transportation 6,927,177 5,885,982 82,454
Community development
Health and sanitation
Culture and leisure 4,421,925
Unassigned (deficit)
Total fund balances (deficit) 6,927,177 5,885,982 4,421,925 82,454 Total liabilities, deferred inflows of
resources and fund balances $ 7,029,512 $ 5,886,683 $ 5,331,184 $ 218,059 $ (Continued)
122
City of Lakewood
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2025
Special Revenue Funds
Park Prop A Prop A Prop A Prop C
Dedication Recreation Transit Incentive NTD TransEortation ASSETS
Cash and investments $ 265,441 $ $ 1,597,686 $ 86,367 $ 6,591,206 Accounts receivables 34,329
Notes receivable
Totol assets $ 265,441 $ 34,329 $ 1,597,686 $ 86,367 $ 6,591,206

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable $ $ $ 35,208 $ $ 5,108
Retention payable
Due to other funds 25,032
Unearned revenue
Total liabilities 25,032 35,208 5,108
Deferred Inflows of Resources:

Unavailable revenues 34,329
Total deferred inflows of resources 34,329
Fund Balances (Deficit):

Restricted for:

Public safety
Transportation 1,562,478 86,367 6,586,098
Community development
Health and sanitation
Culture and leisure 265,441
Unassigned (deficit) (25,032)
Total fund balances (deficit) 265,441 (25,032) 1,562,478 86,367 6,586,098 Total liabilities, deferred inflows of
l'esources and fu11d balances $ 265,441 $ 34,329 $ 1,597,686 $ 86,367 $ 6,591,206 (Continued)
123
City of Lakewood
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2025
S2ecial Revenue Funds
Road State State
PLHA Maintenance and Sewer COPS Gasoliue
Grant Rehab Account Reconstruction Grant Tax
ASSETS
Cash and investments $ 1,126,360 $ 8,764,900 $ 112,159 $ 148,525 $ Accounts receivobles 395,739 194,272
Notes receivable
Total assets $ 1,126,360 $ 9,160,639 $ 112,159 $ 148,525 $ 194,272

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable $ $ 10,209 $ $ 33,333 $
Retention payable
Due to other funds 194,272
Unearned revenue 1,126,360
Total liabilities 1,126,360 10,209 33,333 194,272
Deferred Inflows of Resources:

Unavailable revenues
Total deferred inflows of resources
Fund B11lances (Deficit):

Restricted for:

Public safety 115,192
Transportation 9,150,430
Community development
Health and sanitation 112,159
Cultme and leisure
Unassigned (deficit)
Total fund balances (deficit) 9,150,430 112,159 115,192 Total liabilities, deferred inflows of
resources and fund balances $ 1,126,360 $ 9,160,639 $ 112,159 $ 148,525 $ 194,272 (Continued)
124
City of Lakewood
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2025
Special Revenue Funds
TDAArticle Used Oil
Grant Grant Total
ASSETS
Cash and investments $ 31,427 $ 21,592 $ 36,540,792
Accounts receivables 1,741,523
Notes receivable 470,690
Total assets $ 31,427 $ 21,592 $ 38,753,005

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable $ 31,427 $ 10,244 $ 260,343
Retention payable 9,000
Due to other funds 574,341
Unearned revenue 11,348 1,137,708
Total listbilities 31,427 21,592 1,981,392
Deferred Inflows of Resources:

Unavailable revenues 1,062,141
Total deferred inflows of resources 1,062,141
Fund B•lonccs (Deficit):

Restricted for:

Public safety 115,192
Transportation 30,447,039
Community development 318,518
Health and sanitation 166,928
Culture and leisure 4,687,366
Unassigned (deficit) (25,571)
Total fund balances (deficit) 35,709,472
Total liabilities, deferred inflows of
resources and fund balances $ 31,427 $ 21,592 $ 38,753,005 (Concluded)
125
City of Lakewood
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds
For the Year Ended June 30, 2025
Seecial Revenue Funds
Beverage CA Natural
Container Recycle Resources
AB2766 Grant A~enc~ Grant CDBG JAG
REVENUES:

Taxes $ $ $ $ $
Licenses and permits
Investment income, rents, and concession 3,986 2,957 21 Intergovernmental revenues 106,850 20,281 524,183 20,043 Other
Totnl revenues 110,836 23,238 524,204 20,043
EXPENDITURES:

Current
General government 3,858 20,043
Public safety
Transportation 10,000
Community development 129,997
Health and sanitation 93,646
Culture and leisure 109,507
Capital outlay:

General government
Transportation
Community development 319,796
Culture and leisure
Total expenditures 10,000 93,646 563,158 20,043

EXCESS OF' REVENUES OVER
(UNDER) EXPENDITURES 100,836 (70,408) (38,954)
OTHER FINANCING SOURCES (USES):

Transfers in
Transfers out
Proceed from sale of assets 42,940
Total other financing sources (uses) 42,940
NET CHANGE IN l'UND BALANCES 143,776 (70,408) (38,954)
l'UND BALANCES (DEl'ICIT):

Beginning of year 22,277 125,177 (539) 357,472
End of year $ 166,053 $ 54,769 $ (539) $ 318,518 $
(Continued)
126
City of Lakewood
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2025
Special Revenue Funds
LA County Miscellaneous Open
MeasureM MeasureR Measure W Grants SEace
REVENUES:

Taxes $ $ $ $ $
Licenses and permits
Investment income, rents, and concession 306,466 235,489 186,724 Intergovernmental revenues 1,482,070 1,308,132 1,099,338 367,787 917,681 Other
Total revenues 1,788,536 1,543,621 1,286,062 367,787 917,681 EXPENDITURES:

Current:

General government 40,269
Public safety 125,647
Transportation 124,515 421,306 507,137
Community development
Health and sanitation 4,795
Culture and leisure 43,464
Capital outlay:

General government 226,876
Transportation 1,528,550 207,650 (510)
Community development
Culture and leisure 907,142
Total expenditul'es 1,653,065 628,956 550,091 397,587 907,142

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 135,471 914,665 735,971 (29,800) 10,539 OTHER FINANCING SOURCES (USES):

Transfers in
Transfers out
Proceed from sale of assets
Total other financing soul'ces (uses)
NET CHANGE IN FUND BALANCES 135,471 914,665 735,971 (29,800) 10,539 FUND BALANCES (DEFICIT):

Beginning of year 6,791,706 4,971,317 3,685,954 112,254 (10,539) End of year $ 6,927,177 $ 5,885,982 $ 4,421,925 $ 82,454 $ (Continued)
127
City of Lakewood
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2025
Special Revenue Funds
Pork Prop A Prop A Prop A PropC
Dedication Recreation Transit Incentive NTD Transeortation REVENUES:

Taxes $ 44,880 $ $ 2,103,138 $ $ 1,744,500
Licenses and permits
Investment income, rents, and concession 80,743 260,823 Intergovernmental revenues 38,059
Other
Total revenues 44,880 38,059 2,183,881 2,005,323
EXPENDITURES:

Current:

Geneml government 23,530
Public safety
Transportation 2,372,035 11,200 620,825
Community development
Health and sanitation
Culture and leisure 34,329
Cupitul outluy:

General government
Transportation 209,390
Community development
Culture and leisure
Total expenditul'es 34,329 2,395,565 11,200 830,215

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 44,880 3,730 (2ll,684) (11,200) 1,175,108 OTHER FINANCING SOURCES (USES):

Transfers in 97,567
Transfers out (97,567)
Proceed from sale of assets
Total other financing sources (uses) (97,567) 97,567
NET CHANGE IN FUND BALANCES 44,880 3,730 (309,251) 86,367 1,175,108 FUND BALANCES (DEFICIT):

Beginning of year 220,561 (28,762) 1,871,729 5,410,990
End of year $ 265,441 $ (25,032) $ 1,562,478 $ 86,367 $ 6,586,098 (Continued)
128
City of Lakewood
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2025
Seecial Revenue Funds
Road State State
PLHA Maintenance and Sewer COPS Gasoline
Grant Rehab Account Reconstruction Grants Tax
REVENUES:

Taxes $ $ $ $ $
Licenses and permits 227
Investment income, rents. and concession 354,579 6,296 58,179 Intergovernmental revenues 26,423 2,245,702 241,766 2,279,384 Other
Total 1·evenues 26,423 2,600,281 227 248,062 2,337,563
EXPENDITURES:

Current:

General government
Public safety 200,000
Tmnspotiation 715,832
Community development 26,423
Health and sanitation
Culture and leisure
Capital outlay:

General government
Transportation 8,263
Community development
Culture and leisure
Total expenditures 26,423 724,095 200,000

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 1,876, I 86 227 48,062 2,337,563
OTHER FlNANCING SOURCES (USES):

Transfers in
Transfers out (2,337,563)
Proceed from sale of assets
Total other financing sources (uses) (2,337,563)
NET CHANGE IN FUND BALANCES 1,876,186 227 48,062
FUND BALANCES (DEFICIT):

Beginning of year 7,274,244 111,932 67,130
End of year $ $ 9,150,430 $ 112,159 $ 115,192 $
(Continued)
129
City of Lakewood
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2025
Special Revenue Funds
TDAArticle Used Oil
Grant Grant Total
REVENUES:

Truces $ $ $ 3,892,518
Licenses and permits 227
Investment income, rents, and concession 14 1,496,277
Intergovernmental revenues 82,311 11,467 10,771,477
Other
Total revenues 82,325 11,467 16,160,499
EXPENDITURES:

Current:

General government 87,700
Public safety 325,647
Transportation 4,782,850
Community development 156,420
Health and sanitation 11,175 109,616
Culture and leisure 187,300
Capital outlay:

General government 226,876
Transportation 82,714 2,036,057
Community development 319,796
Culture and leisure 907,142
Totnl expenditures 82,714 11,175 9,139,404

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (389) 292 7,021,095
OTHER FINANCING SOURCES (USES):

Transfers in 97,567
Transfers out (26,097) (2,461,227)
Proceed from sale of assets 42,940
Total other financing sources (uses) (26,097) (2,320,720) NET CHANGE IN FUND BALANCES (389) (25,805) 4,700,375
FUND BALANCES (DEFICIT):

Beginning of year 389 25,805 31,009,097
End of year $ $ $ 35,709,472
(Concluded)
130
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, 2025
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Investment income, rents, and concession $ 3,000 $ 3,000 $ 3,986 $ 986 Intergovernmental revenues 100,000 100,000 106,850 6,850 Total revenues 103,000 103,000 110,836 7,836
EXPENDITURES:

Current:

Transportation 10,000 10,000 10,000
Total expenditures 10,000 10,000 10,000

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 93,000 93,000 100,836 7,836
OTHER FINANCING SOURCES:

Proceed from sale of property 39,190 42,940 3,750
Total other financing sources 39,190 42,940 3,750
NET CHANGE IN FUND BALANCE $ 93,000 $ 132,190 143,776 $ 11,586 FUND BALANCE:

Beginning of year 22,277
End of year $ 166,053
131
City of Lakewood
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Beverage Container Recycle Grant Special Revenue Fund
REVENUES:

Investment income, rents, and concession
Intergovernmental revenues
Total revenues
EXPENDITURES:

Current:

Health and sanitation
Total expenditures

NET CHANGE IN FUND BALANCE
FUND BALANCE:

Beginning of year
End of year
For the Year Ended June 30, 2025
Original
Budget
$ 3,000 $
17,000
20,000
$ 111,996 $
111,996
$ (91,996) $
132
Final Variance with
Budget Actual Final Budget
3,000 $ 2,957 $ (43)
17,000 20,281 3,281
20,000 23,238 3,238
97,062 $ 93,646 $ 3,416
97,062 93,646 3,416
(77,062) (70,408) $ 6,654
125,177
$ 54,769
City of Lakewood
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual CA Natural Resources Agency Grant Special Revenue Fund
REVENUES:

Intergovernmental revenues
Total revenues
EXPENDITURES:

Capital outlay:

Culture and leisure
Total expenditures

NET CHANGE IN FUND BALANCE
FUND BALANCE (DEFICIT):

Beginning of year
End of year
For the Year Ended June 30, 2025
133
Original
Budget
Final
Budget Actual
Variance with
Final Budget
$ 2,000,000 _$~--- _$~--- _$~---
2,000,000
1,999,461 1,999,461
1,999,461 1,999,461
$ 2,000,000 $ (1,999,461) $ 1,999,461
(539)
$ (539)
City of Lakewood
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Community Development Block Grant Special Revenue Fund
REVENUES:

Investment income, rents, and concession
Intergovernmental revenues
Total revenues
EXPENDITURES:

Current:

General government
Community development
Culture and leisure
Capital outlay:

Community development
Total expenditures

NET CHANGE IN FUND BALANCE
FUND BALANCE:

Beginning of year
End of year
For the Year Ended June 30, 2025
Original Final
Budget Budget
$ 3,000 $ 3,000
500,000 500,000
503,000 503,000
3,000 3,000
173,900 173,900
95,443 95,443
40,200 1,288,248
312,543 1,560,591
$ 190,457 $ (1,057,591)
134
Variance with
Actual Final Budget
$ 21 $ (2,979)
524,183 24,183
524,204 21,204
3,858 (858)
129,997 43,903
109,507 (14,064)
319,796 968,452
563,158 997,433
(38,954) $ 1,018,637
357,472
$ 318,518
City of Lakewood
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual JAG Grant Special Revenue Fund
REVENUES:

Intergovernmental revenues
Total reve11ues
EXPENDITURES:

Current:

General government
Total expenditures
NET CHANGES IN }'UND BALANCE
FUND BALANCE:

Beginning of year
End of year
For the Year Ended June 30, 2025
$
Original
Budget
20,043 $
20,043
20,050
20,050
Final
Budget
38,523 $
38,523
38,530
38,530
$ (7) ==$===(?=)
$
135
Actual
Variance with
Final Budget
20,043 $ (18,480)
20,043 (18,480)
20,043 18,487
20,043 18,487
$ 7
City of Lakewood
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual LA County Measure M Special Revenue Fuud
REVENUES:

Investment income, rents, and concession
Intergovernmental revenues
Total revenues
EXPENDITURES:

Current:

Transportation
Capital outlay:

Transp011ation
Total expenditures

NET CHANGE IN FUND BALANCE
FUND BALANCE:

Beginning of year
End of year
For the Year Ended June 30, 2025
Original
Budget
$ 70,000
1,589,510
1,659,510
175,000
117,520
292,520
$ 1,366,990
136
Final Variance with
Budget Actual Final Budget
$ 200,000 $ 306,466 $ 106,466
1,589,510 1,482,070 (107,440)
1,789,510 1,788,536 (974)
175,000 124,515 50,485
5,594,908 1,528,550 4,066,358
5,769,908 1,653,065 4,116,843
$ (3,980,398) 135,471 $ 4,115,869
6,791,706
$ 6,927,177
City of Lakewood
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Measure R Special Revenue Fund
REVENUES:

Investment income, rents, and concession
Intergovernmental revenues
Total revenues
EXPENDITURES:

Current:

Transportation
Capital outlay:

Transportation
Total expenditures

NET CHANGE IN FUND BALANCE
FUND BALANCE:

Beginning of year
End of year
For the Year Ended Jnne 30, 2025
Original
Budget
$ 60,000
1,402,510
1,462,510
881,407
167,520
1,048,927
$ 413,583
137
Final Variance with
Budget Actual Final Budget
$ 150,000 $ 235,489 $ 85,489
1,402,510 1,308,132 (94,378)
1,552,510 1,543,621 (8,889)
892,408 421,306 471,102
3,284,535 207,650 3,076,885
4,176,943 628,956 3,547,987
$ (2,624,433) 914,665 $ 3,539,098
4,971,317
$ 5,885,982
City of Lakewood
Schedule ofReveuues, Expenditures, aud Changes iu Fuud Balance - Budget and Actual Measure W Special Revenue Fund
REVENUES:

Investment income, rents, and concession
Intergovernmental revenues
Total revenues
EXPENDITURES:

Current:

Transportation
Culture and leisure
Total expenditures

NET CHANGE IN FUND BALANCE
FUND BALANCE:

Beginning of year
End of year
For the Year Ended June 30, 2025
Original
Budget
$ 50,000 $
1,550,066
1,600,066
545,828
50,000
595,828
$ 1,004,238 $
138
Final Variance with
Budget Actual Final Budget
126,000 $ 186,724 $ 60,724
1,550,789 1,099,338 (451,451)
1,676,789 1,286,062 (390,727)
680,624 507,137 173,487
64,050 43,464 20,586
744,674 550,601 194,073
932,115 735,461 $ (196,654)
3,685,954
$ 4,421,415
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, 2025
Original Final Variance with
Budget Bud~et Actual Final Bud~et
REVENUES:

Intergovernmental revenues $ 610,0lI $ 413,821 $ 367,787 $ (46,034) Total l'evenues 610,011 413,821 367,787 (46,034)
EXPENDITURES:

Current:

General government 67,500 53,861 40,269 13,592
Public safety 150,000 132,600 125,647 6,953
Health and sanitation 215,635 4,446 4,795 (349)
Capital outlay:

General government 226,876 226,876
Total expenditures 433,135 417,783 397,587 20,196
NET CHANGE IN FUND BALANCE $ 176,876 $ (3,962) (29,800) $ (25,838) FUND BALANCE:

Beginning of year 112,254
End of year $ 82,454
139
City of Lakewood
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Open Space Special Revenue Fund
REVENUES:

Intergovernmental revenues
Total revenues
EXPENDITURES:

Capital outlay:

Culture and leisure
Total expenditures

NET CHANGE IN FUND BALANCE
FUND BALANCE (DEFICIT):

Beginning of year
End of year
For the Year Ended June 30, 2025
Original
Budget
Final
Budget Actual
Variance with
Final Budget
$ 978,281 $ 917,682 $ 917,681 -'$'-----'-'(I"-)
978,281 917,682 917,681 (!)
1,025,347 907,142 118,205
1,025,347 907,142 118,205
$ 978,281 $ (107,665) 10,539 $ 118,204
(10,539)
$
140
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, 2025
Original Final Variance with
Budget Budget Actuul Final Budget
REVENUES:

Taxes $ 27,000 $ 43,230 $ 44,880 $ 1,650
Total revenues 27,000 43,230 44,880 1,650
NET CHANGE IN FUND BALANCE $ 27,000 $ 43,230 44,880 $ 1,650 FUND BALANCE:

Beginning of year 220,561
End of year $ 265,441
141
City of Lakewood
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Prop A Recreation Special Revenue Fund
REVENUES:

Intergovernmental revenues
Total revenues
EXPENDITURES:

Current:

Culture and leisure
Total expenditures

NET CHANGE IN FUND BALANCE
FUND BALANCE (DEFICIT):

Beginning of year
End of year
For the Year Ended June 30, 2025
Original
Budget
$ 37,000 $
37,000
66,990
66,990
$ (29,990) $
142
Final Variance with
Budget Actual Final Budget
38,060 $ 38,059 $ Pl
38,060 38,059 (!)
66,990 34,329 32,661
66,990 34,329 32,661
(28,930) 3,730 $ 32,660
(28,762)
$ (25,032)
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, 2025
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Taxes $ 2,254,460 $ 2,254,460 $ 2,103,138 $ (151,322)
[nvestment income, rents, and concession 31,000 75,000 80,743 5,743 Total revenues 2,285,460 2,329,460 2,183,881 (145,579)
EXPENDITURES:

Current:

General government 23,218 25,633 23,530 2,103
Transportation 2,340,475 2,374,425 2,372,035 2,390
Community development 4,900 4,500 4,500
Capital outlay:

Transportation 125,000 125,000
Totnl expenditures 2,368,593 2,529,558 2,395,565 133,993

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (83,133) (200,098) (211,684) (279,572) OTHER FINANCING USES:

Transfers out (97,567) 97,567
Total other financing uses (97,567) 97,567
NET CHANGE IN FUND BALANCE $ (83,133) $ (200,098) (309,251) $ (109,153) FUND BALANCE:

Beginning of year 1,871,729
End of year $ 1,562,478
143
City of Lakewood
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Prop A Incentive NTD Fund
EXPENDITURES:

Current:

Transportation
Total expenditures

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES:

Transfers in
Total othe1· financing sources

NET CHANGE IN FUND BALANCE
FUND BALANCE:

Beginning of year
End of year
For the Year Ended June 30, 2025
Original
Budget
$ $
$ $
144
Final Variance with
Budget Actual Final Budget
$ 11,200 $ (11,200)
11,200 (11,200)
(11,200) 11,200
97,567 (97,567)
97,567 (97,567)
86,367 $ 86,367
$ 86,367
City of Lakewood
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Prop C Transportation Special Revenue Fund
REVENUES:

Taxes
Investment income, rents, and concession
Total reve1mes
EXPENDITURES:

Current:

Transportation
Capital outlay:

Transportation
Total expenditures

NET CHANGE IN FUND BALANCE
FUND BALANCE:

Beginning of year
End of year
For the Year Ended June 30, 2025
Original
Budget
$ 1,870,0IO
60,000
1,930,010
985,137
985,137
$ 944,873
145
Final Variance with
Budget Actual Final Budget
$ 1,870,0IO $ 1,744,500 $ (125,510)
160,000 260,823 I00,823
2,030,010 2,005,323 (24,687)
692,482 620,825 71,657
5,439,391 209,390 5,230,001
6,131,873 830,215 5,301,658
$ (4,101,863) 1,175,108 $ 5,276,971
5,410,990
$ 6,586,098
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, 2025
REVENUES:

Intergovernmental revenues
Total reve11ues
EXPENDITURES:

Current:

Community development
Totnl expenditures

NET CHANGE IN FUND BALANCE
FUND BALANCE:

Beginning of year
End of year
Original
Budget
$ 50,620
50,620
50,620
50,620
$
146
Final Variance with
Budget Actual Final Budget
$ 1,152,783 $ 26,423 $ (1,126,360)
1,152,783 26,423 (1,126,360)
27,080 26,423 657
27,080 26,423 657
$ 1,125,703 $ (1,125,703)
$
City of Lakewood
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Road Maintenance and Rehab Account Special Revenue Fund REVENUES:

Investment income, rents, and concession
[ntergovernmental revenues
Totnl revenues
EXPENDITURES:

Current:

Transportation
Capital outlay:

Transportation
Total ex11enditures

NET CHANGE IN FUND BALANCE
FUND BALANCE:

Beginning of year
End of year
For the Year Ended June 30, 2025
Original
Budget
$
1,900,000
1,900,000
780,000
780,000
$ 1,120,000
147
Final Variance with
Budget Actual Final Budget
$ $ 354,579 $ 354,579
2,151,774 2,245,702 93,928
2,151,774 2,600,281 448,507
780,000 715,832 64,168
8,037,790 8,263 8,029,527
8,817,790 724,095 8,093,695
$ (6,666,016) 1,876,186 $ 8,542,202
7,274,244
$ 9,150,43Q__
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, 2025
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

License and permits $ 300 $ 300 $ 227 $ (73)
Total revenues 300 300 227 (73)
NET CHANGE IN FUND BALANCE $ 300 $ 300 227 $ (73)
FUND BALANCE:

Beginning of year 111,932
End of year $ 112,159
148
City of Lakewood
Schedule of Revenues, Expeuditures, and Changes in Fund Balance - Budget and Actual State COPS Grant Special Reveuue Fund
REVENUES:

Investment income, rents, and concession
Intergovernmental revenues
Total revenues
EXPENDITURES:

Current
Public safety
Total expenditnres

NET CHANGE IN FUND BALANCE
FUND BALANCE:

Beginning of year
End of year
For the Year Ended June 30, 2025
Original
Budget
$ 3,000 $
220,000
223,000
200,000
200,000
$ 23,000 _$
149
Final Variance with
Budget Actual Final Budget
5,000 $ 6,296 $ 1,296
244,000 241,766 (2,234)
249,000 248,062 (938)
200,000 200,000
200,000 200,000
49,000 48,062 $ (938)
67,130
$ 115,192
City of Lakewood
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual State Gasoline Tax Special Revenue Fund
REVENUES:

Investment income, rents, and concession
Intergovernmental revenues
Total revenues

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING (USES):

Transfers out
Total other financing (uses)

NET CHANGE IN FUND BALANCE
FUND BALANCE:

Beginning of year
End of year
For the Year Ended June 30, 2025
Original
Budget
$ 20,000 $
2,258,500
2,278,500
(2,278,500)
(2,278,500)
(2,278,500)
$ $
150
Final Variance with
Budget Actual Final Budget
40,000 $ 58,179 $ 18,179
2,332,977 2,279,384 (53,593)
2,372,977 2,337,563 (35,414)
(2,372,977) (2,337,563) 35,414
(2,278,500) (2,337,563) (59,063)
(2,278,500) (2,337,563) 59,063
94,477 $ (94,4772
$
City of Lakewood
Schedule of Revenues, Expenditures, and Changes in Fuud Balance - Budget and Actual TDA Article Grant Special Revenue Fund
REVENUES:

Investment income, rents, and concession
Intergovernmental revenues
Total revenues
EXPENDITURES:

Capital outlay:

Transportation
Total expenditures

NET CHANGE IN FUND BALANCE
FUND BALANCE:

Beginning of year
End of year
For the Year Ended June 30, 2025
Original
Budget
$ 50 $
82,300
82,350
82,350
82,350
$ $
151
Final Variance with
Budget Actual Final Budget
50 $ 14 $ (36)
82,300 82,311 11
82,350 82,325 (252
82,720 82,714 6
82,720 82,714 6
(3702 (389) $ (19)
389
$
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, 2025
Original Final Variance with
Budget Bud~et Actual Final Budget
REVENUES:

Intergovernmental revenues $ 11,316 $ 11,316 $ 11,467 $ 151 Total revenues 11,316 11,316 11,467 151
EXPENDITURES:

Current:

Health and sanitation 11,316 696 11,175 (10,479)
Total expenditures 11,316 696 11,175 (10,479)

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 10,620 292 10,630
OTHER FINANCING (USES):

Transfers out (26,097) (26,097)
Total other financing (uses) (26,097) 26,097
NET CHANGE IN FUND BALANCE $ $ 10,620 (25,805) $ (36,425) FUND BALANCE:

Beginning of year 25,805
End of year $
152

STATISTICAL SECTION
153
154
City of Lakewood
Description of Statistical Section Contents
June 30, 2025
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.

Contents:

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 repmt related to the services the City provides and activities it performs.
155
Pages
156-165
167-175
176-183
184
185-189
City of Lakewood
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
2016 2017• 2018 2019 2020
Government activities:

Net investment in capital assets $ 90,100,125 $ 94,918,550 $ I 00,416,548 $ 108,108,047 $ 111,479,193 Restricted 10,805,986 15,160,381 21,751,112 24,069,839 27,088,588 Unrestricted 31,932,235 25,186,231 17,346,009 16,446,872 13,077,407 Total governmental activities
net position $ 132,838,346 $ 135,265,162 $ 139,513,669 $ 148,624,758 $ 151,645,188 Business-type activities:

Net investment in capital assets $ 28,527,530 $ 27,587,388 $ 26,543,189 $ 26,327,391 $ 27,211,808 Restricted
Unrestricted 6,287,737 9,848,943 11,954,770 13,057,126 12,982,718 Total business~type activities
net position $ 34,815,267 $ 37,436,331 $ 38,497,959 $ 39,384,517 $ 40,194,526 Primary govermnent:

Net investment in capital assets $ 118,627,655 $ 122,505,938 $ 126,959,737 $ 134,435,438 $ 138,691,001 Restricted 10,805,986 15,160,381 21,751,112 24,069,839 27,088,588 Unrestricted 38,219,972 35,035,174 29,300,779 29,503,998 26,060,125 Total primary government net position $ 167,653,613 $ 172,701,493 $ 178,011,628 $ 188,009,275 $ 191,839,714 * 2017 unrestricted net positions are restated as result of implementation of GASB Statement No. 75.

Source: Department of Administrative Services, City of Lakewood 156
City of Lakewood
Net Position by Component (Continued)
Last Ten Fiscal Years
( accrual basis of accounting)
Fiscnl Yenr
2021 2022 2023 2024** 2025
Government activities:

Net invesbnent in capital assets $ 115,207,736 $ 118,073,852 $ 121,076,026 $ 125,001,849 $ 130,340,973 Restricted 36,051,636 38,566,384 41,623,987 40,965,862 47,257,791 Unrestricted 21,717,181 37,163,986 55,003,027 74,476,774 82,270,526 Total governmental activities
net position $ 172,976,553 $ 193,804,222 $ 217,703,040 $ 240,444,485 $ 259,869,290 Business-type activities:

Net investment in capital assets $ 27,173,204 $ 27,686,379 $ 27,470,407 $ 31,927,110 $ 30,599,968 Restricted 119,450
Unrestricted 14,792,197 14,779,213 15,583,527 12,777,680 16,925,151 Total business-type activities
net position $ 41,965,401 $ 42,465,592 $ 43,053,934 $ 44,704,790 $ 47,644,569 Primary government:

Net investment in capital assets $ 142,380,940 $ 145,760,231 $ 148,546,433 $ 156,928,959 $ 160,940,941 RestTicted 36,051,636 38,566,384 41,623,987 40,965,862 47,377,241 Unrestricted 36,509,378 51,943,199 70,586,554 87,254,454 99,195,677 Total primary government net position $ 214,941,954 $ 236,269,814 $ 260,756,974 $ 285,149,275 $ 307,513,859 ** 2024 unrestricted net positions are restated as result of implementation of GASB Statement No. 101.

Source: Department of Administrative Services, City of Lakewood 157
City of Lakewood
Changes in Net Position - Expenses and Program Revenues Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
2016 2017 2018 2019 2020
Expenses:

Governmental Activities:

General government $ 7,187,053 $ 7,618,899 $ 8,414,207 $ 8,623,397 $ 9,633,988 Public Safety 14,271,008 14,266,703 14,934,025 15,587,612 15,847,990 Transportation 4,740,336 4,915,779 5,319,350 5,618,743 6,191,543 Community development 4,759,414 5,216,400 5,602,768 5,755,708 5,965,959 Health and sanitation 4,901,125 5,066,047 5,173,751 5,440,069 5,488,139 Culture and leisure 11,770,595 12,757,229 13,919,102 14,023,325 14,317,749 Unallocated infrastructure depreciation 2,721,461 2,732,259 2,680,800 2,610,286 2,472,242 Interest on long-term debt 15,143 14,308 12,246 10,065 24,865 Total governmental activities expenses 50,366,135 52,587,624 56,056,249 57,669,205 59,942,475 Business-type activities:

Water 9,628,369 9,316,642 12,124,940 12,722,577 12,340,848 Total primary government expenses $ 59,994,504 $ 61,904,266 $ 68,181,189 $ 70,391,782 $ 72,283,323 Program revenues:

Governmental activities:

Charges for services:

General government $ 1,790,751 $ 1,961,794 $ 1,701,064 $ 1,842,865 $ 1,723,330 Public safety 912,841 828,408 799,898 824,844 739,734
Community development 1,754,359 1,687,297 1,644,380 1,831,695 1,647,529 Health and sanitation 5,309,601 5,430,005 5,493,200 5,736,770 6,017,870 Culture and leisure 1,543,688 1,591,984 1,505,685 1,627,965 1,050,990 Operating grants and contributions 3,585,692 6,100,046 8,633,736 9,751,629 8,862,665 Capital grants and contributions 3,365,208 8,542,663 6,315,712 8,315,163 6,378,745 Total governmental activities program
revenues 18,262,140 26,142,197 26,093,675 29,930,931 26,420,863 Business-type activities:

Charges for services:

Water 10,930,852 10,873,311 13,003,840 13,354,770 12,869,000 Operating grants and contributions
Total business-type activities program
revenues 10,930,852 10,873,311 13,003,840 13,354,770 12,869,000 Total primary government
program revenues $ 29,192,992 $ 37,015,508 $ 39,097,515 $ 43,285,701 $ 39,289,863 Net revenues (expenses):

Governmental activities $ (32,103,995) $ (26,445,427) $ (29,962,574) $ (27,738,274) $ (33,521,612) Business-type activities 1,302,483 1,556,669 878,900 632,193 528,152 Total net revenues (expenses) $ (30,801,512) $ (24,888,758) $ (29,083,674) $ (27,106,081) $ (32,993,460) Source: Dcparlmcnt of Administrative Services, City of Lakewood 158
City of Lakewood
Changes in Net Position - Expenses and Program Revenues (Continued) Last Ten Fiscal Years
( accrual basis of accounting)
Fiscal Year
2021 2022 2023 2024 2025
Expenses:

Governmental Activities:

General government $ 11,542,121 $ 9,982,626 $ 11,937,554 $ 14,693,300 $ 16,649,381 Public Safety 16,955,187 17,505,002 19,143,257 19,847,784 21,716,420 Transpotiation 6,551,094 6,503,537 7,344,923 9,196,277 8,857,706 Community development 6,018,023 5,291,189 6,852,859 11,541,397 9,711,914 Health and sanitation 5,705,506 6,083,718 6,601,028 7,018,202 7,524,212 Culture and leisure 14,449,389 13,651,705 15,790,357 16,854,174 14,284,375 Unallocated infrastructure depreciation 2,772,636 2,723,750 2,853,732 2,960,331 2,852,149 Interest on long-term debt 25,131 6,525 11,291 7,388 223,514 Total governmental activities expenses 64,019,087 61,748,052 70,535,001 82,118,853 81,819,671 Business-type activities:

Water 10,534,148 11,481,342 l l,752,016 10,916,222 11,119,465 Total primary government expenses $ 74,553,235 $ 73,229,394 $ 82,287,017 $ 93,035,075 $ 92,939,136 Program revenues:

Governmental activities:

Charges for services:

General government $ 1,549,999 $ 1,450,370 $ 2,701,247 $ 1,471,591 $ 1,204,600 Public safety 721,881 838,925 413,873 393,394 419,290
Community development 1,890,846 1,962,283 3,164,754 2,984,948 3,301,936 Health and sanitation 6,332,537 6,483,492 7,145,242 7,530,143 8,130,286 Culture and leisure 578,668 1,232,960 1,738,400 2,290,947 1,898,804 Operating grants and contributions 13,234,375 13,575,994 16,264,335 26,237,087 16,195,885 Capital grants and contributions 10,424,134 2,957,680 2,532,217 1,534,046 4,208,826 Total governmental activities program
revenues 34,732,440 2,8,501,704 33,960,068 42,442,156 35,359,627 Business-type activities:

Charges for services:

Water 13,965,629 13,787,798 13,497,514 12,992,428 15,133,110 Operating grants and contributions 734,065
Total business-type activities program
revenues 13,965,629 13,787,798 13,497,514 13,726,493 15,133,110 Total primary government
program revenues $ 48,698,069 $ 42,289,502 $ 47,457,582 $ 56,168,649 $ 50,492,737 Net revenues (expenses):

Governmental activities $ (29,286,647) $ (33,246,348) $ (36,574,933) $ (39,676,697) $ (46,460,044) Business-type activities 3,431,481 2,306,456 1,745,498 2,810,271 4,013,645 Total net revenues (expenses) $ (25,855, 166) $ (30,939,892) $ (34,829,435) $ (36,866,426) $ (42,446,399) Source: Department of Adminislrative Services, City of Lakewood 159
City of Lakewood
Changes in Net Position - Expenses and Program Revenues (Continued) Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
2016 2017 2018 2019 2020
General revenues and other changes in
net position:

Governmental activities:

Truces:

Sales taxes $ 15,961,352 $ 14,133,828 $ 14,303,519 $ 14,635,987 $ 13,555,147 Property taxes 12,747,876 13,039,739 13,795,722 14,637,510 15,657,307 Franchise taxes 1,699,343 1,430,601 1,598,487 1,543,020 1,519,485 Business opemtion taxes 1,016,140 674,880 650,728 651,364 462,677 Utility user taxes 3,398,962 3,314,095 3,163,738 3,061,021 2,650,026 Other taxes 378,213 442,393 424,144 409,432 469,328
Gain on sale of property 114,000 77,715
Transfers in
Investment income (loss)
'
482,676 459,477 274,743 1,833,314 2,228,072
Total governmental activities 35,684,562 33,609,013 34,211,081 36,849,363 36,542,042 Business-type activities:

Gain on sale of capital assets 1,035,021
Transfers out
Investment income 100,188 131,040 182,728 254,365 281,857 Total business-type activities 100,188 1,166,061 182,728 254,365 281,857 Total primary government $ 35,784,750 $ 34,775,074 $ 34,393,809 $ 37,103,728 $ 36,823,899 Changes in net position, before special item
Governmental activities $ (348,547) $ 1,505,018 $ 7,765,654 $ 6,886,789 $ 8,803,768 Business-type activities 856,312 2,468,544 1,739,397 1,133,265 914,050 Special item ll) (1,636,193)
Changes in net position
Governmental activities $ (1,984,740) $ 1,505,018 $ 7,765,654 $ 6,886,789 $ 8,803,768 Business-type activities 856,312 2,468,544 1,739,397 1,133,265 914,050 Total primary government $ (1,128,428) $ 3,973,562 $ 9,505,051 $ 8,020,054 $ 9,717,818 (I) Note on special item: The fiscal year 2016 special item represents the unrealized loss recognized on the City loan to the Successor Agency resulting from an interest rate recalculation in accordance with State law:

Source: Department of Administrative Services, City of Lakewood 160
City of Lakewood
Changes in Net Position - Expenses and Program Revenues (Continued) Last Ten Fiscal Years
( accrual basis of accounting)
Fiscnl Yeal'
2021 2022 2023 2024 2025
General revenues and other changes in
net position:

Governmental activities:

Taxes:

Sales taxes $ 26,182,543 $ 31,256,373 $ 31,642,524 $ 31,208,121 $ 30,843,759 Property tuxes 16,600,433 16,945,351 18,058,390 18,819,630 19,446,829 Franchise taxes 1,535,167 1,582,709 1,706,982 1,722,859 1,592,476 Business operation taxes 560,252 578,867 645,799 699,707 1,021,013 Utility user taxes 3,034,416 3,361,075 3,851,673 3,836,274 3,934,710 Other taxes 541,524 582,151 404,168 409,272 780,927
Gain on sale of property 146,530 85,029 185,716
Transfers in 1,795,700 1,795,700 1,795,700 1,580,728 1,769,603 Investment income (loss) 182,662 (2,028,209) 2,221,985 4,169,777 6,309,816 Total governmental activities 50,432,697 54,074,017 60,473,751 62,531,397 65,884,849 Business-type activities:

Gain on sale of capital assets
Transfers out (1,795,700) (1,795,700) (1,795,700) (1,580,728) (1,769,603) Investment income 135,094 (10,565) 638,544 426,194 695,737 Total business-type activities (1,660,606) (1,806,265) (1,157,156) (1,154,534) (1,073,866) Total primary government $ 48,772,091 $ 52,267,752 $ 59,316,595 $ 61,376,863 $ 64,810,983 Changes in net position, before special item
Governmental activities $ 16,911,085 $ 20,827,669 $ 23,898,818 $ 22,854,700 $ 19,424,805 Business-type activities (1,132,454) 500,191 588,342 1,655,737 2,939,779 Special item
Changes in net position
Governmental activities $ 16,911,085 $ 20,827,669 $ 23,898,818 $ 22,854,700 $ 19,424,805 Business-type activities (1,132,454) 500,191 588,342 1,655,737 2,939,779 Total primary government $ 15,778,631 $ 21,327,860 $ 24,487,160 $ 24,510,437 $ 22,364,584 Source: Department of Administrative Services, City of Lakewood 161
City of Lakewood
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
2016 2017 2018 2019 2020
General fund:

Nonspendable $ 9,007,179 $ 9,242,133 $ 9,614,693 $ 9,887,493 $ 10,088,435 Restricted 617,122 62,478
Committed 22,470,125 24,641,778 25,016,682 24,952,465 26,389,437 Assigned 9,060,489 7,941,985 4,573,815 4,941,360 4,905,102 Unassigned 2,545,033 1,388,222 1,721,244 2,182,964 1,306,735 Total general fund $ 43,082,826 $ 43,214,118 $ 40,926,434 $ 42,581,404 $ 42,752,187 All other governmental funds:

Nonspendable $ 7,216,652 $ 7,293,057 $ $ $
Restricted 10,304,699 11,811,420 21,385,895 23,637,463 27,025,084 Committed
Unassigned (deficit) (657,720) (3,223,534) (2,000,042) (2,813,850) (2,942,067) Total all other governmental funds $ 16,863,631 $ 15,880,943 $ 19,385,853 $ 20,823,613 $ 24,083,017 Source: Department of Administrative Services, City of Lakewood 162
City of Lakewood
Fund Balances of Governmental Funds (Continued)
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
2021 2022 2023 2024 2025
General fund:

Nonspendable $ 10,333,944 $ 10,562,095 $ 10,869,234 $ 11,246,722 $ 11,587,505 Restricted 10,648,964
Committed 27,296,545 30,913,516 32,671,856 36,564,625 49,651,326 Assigned 4,905,102 20,357,986 33,777,497 48,544,750 43,002,693 Unassigned 10,327,717 2,535,221 4,094,060 2,616,589 670,501 Total general fund $ 52,863,308 $ 64,368,818 $ 81,412,647 $ 98,972,686 $ 115,560,989 All other governmental funds:

Nonspendable $ $ $ $ $
Restricted 32,367,386 37,715,646 38,803,316 40,287,661 44,291,063 Committed 1,836,455 3,147,804 2,726,714
Unassigned (deficit) (2,228,398) (363,859) (184,691) (39,840) (25,571) Total all other governmental funds $ 30,138,988 $ 37,351,787 $ 40,455,080 $ 43,395,625 $ 46,992,206 Source: Department of Administrative Services, City of Lakewood 163
City of Lakewood
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
2016 2017 2018 2019 2020
Revenues:

Taxes $ 28,512,153 $ 27,428,381 $ 27,840,342 $ 28,653,388 $ 27,684,978 Licenses and permits 1,305,394 1,271,711 1,213,898 1,356,208 1,311,229 Fines and forfeitures 792,042 726,158 803,671 877,832 734,643 Investment income, rents and concessions 1,579,999 1,628,636 1,549,043 3,172,061 3,392,410 From other agencies 13,040,289 16,801,522 21,529,691 22,305,483 21,703,390 Current service charges 7,820,247 7,676,870 7,727,896 8,102,123 7,789,524 Other 1,319,267 1,332,492 1,296,960 1,369,123 1,066,017 Total revenues 54,369,391 56,865,770 61,961,501 65,836,218 63,682,191 Expenditures:

Current:

General government 7,469,038 7,598,738 7,775,703 7,928,367 8,241,505 Public safety 14,035,382 13,957,135 14,643,744 15,297,771 15,583,762 Transportation 4,848,633 4,794,659 4,938,424 4,994,979 5,279,004 Community development 4,877,917 5,266,588 5,448,344 5,576,834 5,544,163 Health and sanitation 4,908,103 5,064,902 5,173,879 5,406,156 5,477,528 Culture and leisure I 1,356,886 11,845,756 12,296,334 12,275,314 11,886,225 Capital outlay:

General government 60,392 71,163 125,383 201,076
Public safety 894,527
Transportation 2,474,885 7,838,438 6,122,168 9,821,988 7,137,458 Community Development 85,996 30,256 7,116 24,532 7,414
Culture and leisure 2,443,762 1,313,659 4,163,308 1,994,314 881,672 Debt service:

Principal retirement 31,313 35,564 37,626 39,807 185,206 Interest and fiscal charges 15,143 14,308 12,246 10,065 28,067 Total expenditures 53,501,977 57,831,166 60,744,275 63,571,203 60,252,004 Exeess of revenues over (under)
expenditures 867,414 (965,396) 1,217,226 2,265,015 3,430,187 Other financing sources (uses):

Issuance of lease payable 278,121 750,000
Transfers in 1,771,504 1,564,966 1,808,209 1,571,741 2,213,002 Transfers out (1,771,504) (1,564,966) (1,808,209) (1,571,741) (2,213,002) Proceeds from issuance of debt
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 $ (490,658) $ (851,396) $ 1,217,226 $ 3,092,730 $ 3,430,187 Debt service as a percentage of
noncapital expenditures 0.10% 0.10% 0.10% 0.10% 0.41%
Source: Department of Administrative Services, City of Lakewood 164
City of Lakewood
Changes in Fund Balances of Governmental Funds (Continued) Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Yea1·
2021 2022 2023 2024 2025
Revenues:

Taxes $ 41,098,863 $ 47,537,386 $ 49,054,580 $ 48,946,691 $ 48,616,265 Licenses and permits 1,451,338 1,454,830 2,215,035 2,153,053 2,442,734 Fines and fotfeitures 748,656 743,167 682,411 751,654 735,077 Investment income, rents and concessions 924,009 (1,204,812) 3,947,978 6,575,053 8,793,860 From other agencies 31,019,031 21,443,120 23,569,755 32,984,600 24,849,068 Current service charges 8,076,990 8,686,921 9,658,905 9,963,139 10,766,933 Other 1,096,083 2,661,610 3,315,184 2,339,738 2,186,171 Total revenues 84,414,970 81,322,222 92,443,848 103,713,928 98,390,108 Expenditures:

Current:

General government 10,841,466 10,940,429 11,443,139 13,153,299 16,735,265 Public safety 16,673,133 17,740,952 18,731,590 19,494,476 21,886,591 Transportation 6,008,396 7,155,428 6,985,144 8,788,922 9,306,329 Community development 5,772,175 5,583,986 6,686,615 11,267,874 10,274,123 Health and sanitation 5,706,406 6,099,067 6,468,720 6,847,261 7,528,430 Culture and leisure 12,511,815 14,249,773 14,215,149 15,286,527 14,251,194 Capital outlay:

General government 146,425 503,288 657,821 1,216,637 271,804 Public safety 103,239 14,400 293,083 131,106 59,776
Transportation 6,675,851 3,868,435 5,560,484 2,456,184 4,983,321 Community Development 22,048 205,203 315,945 405,559 319,796 Culture and leisure 1,097,870 2,266,698 1,528,898 4,092,426 4,844,795 Debt service:

Principal retirement 191,498 243,609 270,147 271,906 125,149 Interest and fiscal charges 21,775 16,757 12,333 8,458 2,582 Total expenditures 65,772,097 68,888,025 73,169,068 83,420,635 90,589,155 Excess of revenues over (under)
expenditures 18,642,873 12,434,197 19,274,780 20,293,293 7,800,953 Other financing somces (uses):

Issuance of lease payable
Transfers in 3,593,665 3,854,822 4,302,783 4,506,716 4,606,926 Transfers out (I, 797,965) (2,059,122) (3,695,351) (4,384,454) (2,837,323) Proceeds from issuance of debt 10,500,000
Sale of capital assets 146,530 85,029 114,328
Proceeds from lease issuance 31,616 118,380
Total other financing sources (uses) 1,795,700 1,827,316 872,342 207,291 12,383,931 SPECIAL ITEMS:

Gain(loss) on interest adjustment on the
loans to the Successor Agency
Net change in fund balances $ 20,438,573 $ 14,261,513 $ 20,147,122 $ 20,500,584 $ 20,184,884 Debt service as a percentage of
noncapital expenditures 0.37% 0.42% 0.44% 0.37% 0.16%
Source; Department of Administrative Services, City of Lakewood 165
166
City of Lakewood
Major Tax Revenue By Sources
Last Ten Fiscal Years
(accrual basis of accounting)
Business
Fiscal Yenr Properly Franchise Operntion Utility User
Ended June 30 Sales Taxes Taxes Taxes Taxes Taxes Other Taxes Total 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 2025 30,843,759 19,446,829 1,592,476 1,021,013 3,934,710 780,927 57,619,714 167
Apparel Stores
General Merchandise
Food Stores
Eating and Drinking Places
Building Materials
Auto Dealers and Supplies
Service Stations
Other Retail Stores
All Other Outlets
Source: HdL Companies
City of Lakewood
Taxable Sales by Category
Last Ten Calendar Years
(in thousands of dollars)
Fiscal Years
2015 2016 2017
$ 104,262 $ 108,777 $ 107,971
335,292 326,877 332,043
47,494 47,845 46,073
189,057 197,497 204,971
67,557 73,781 78,690
133,160 154,323 161,696
100,673 86,673 93,554
190,440 191,145 195,787
192,439 209,133 220,039
$ 1,360,374 $ 1,396,05 I $ 1,440,824
Based on the calendar year; therefore, the most recent year is 2024. 168
2018 2019
$ 111,925 $ 111,451
319,083 324,131
46,429 47,825
208,381 215,395
91,179 75,681
130,424 129,173
107,480 102,185
196,820 194,360
221,375 244,317
$ 1,433,096 $ 1,444,518
Apparel Stores
General Merchandise
Food Stores
Eating and Drinking Places
Building Materials
Auto Dealers and Supplies
Service Stations
Other Retail Stores
All Other Outlets
Source: HdL Companies
City of Lakewood
Taxable Sales by Category (Continued)
Last Ten Calendar Years
(in thousands of dollars)
Fiscal Years
2020 2021 2022
$ 69,217 $ 120,346 $ 105,673
285,728 346,224 381,187
54,744 53,932 55,399
166,013 206,461 228,794
79,150 79,143 91,515
128,152 176,857 268,377
67,688 98,487 135,060
162,233 209,987 202,119
313,924 335,951 366,192
$ 1,326,849 $ 1,627,388 $ 1,834,316
Based on the calendar year; therefore, the most recent year is 2024. 169
2023 2024
$ 97,218 $ 96,833
382,858 377,886
55,936 56,136
234,169 244,538
89,668 94,736
250,982 236,889
111,597 104,798
189,181 184,582
349,303 366,488
$ 1,760,912 $ 1,762,886
2016 2017
City of Lakewood
City Sales Tax Rates
Last Ten Fiscal Years
(Rate at June 30th of Fiscal Year)
Fiscal Years
2019 2020 2022 2023 2025
City Sales Tax rate 9.000% 8.750% 9.500% 9.500% 9.500% 10.250% 10.250% 10.250% 10.250% 10.500% Source: California State Board of Equalization
170
Fiscal Year Ended
June 30
2016 $
2017
2018
2019
2020
2021
2022
2023
2024
2025
City of Lakewood
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
(in thousands of dollars)
Taxable Assessed
Secured Nonunitnry Unsecured Vnlue
8,155,338 258 $ 142,831 $ 8,298,427
8,561,782 258 136,052 8,698,092
9,028,557 225 136,546 9,165,328
9,513,618 225 141,465 9,655,308
9,983,645 226 145,044 10,128,915
10,474,857 226 143,457 10,618,540
10,913,386 1 129,486 11,042,873
11,574,142 140,919 11,715,062
12,124,727 154,954 12,279,682
12,660,153 165,876 12,826,030
Total Direct Tax
Rate

0.060%

0.060%

0.060%

0.060%

0.060%

0.060%

0.060%

0.060%

0.598%

0.060%
Note: In 1978, the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an 11 inflation factor 11 (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
171
City of Lakewood
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
(Rate per $100 of assessed value)
Fiscal Years
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
City Direct Rates:

City basic rate $ 0.0604 $ 0.0603 $ 0.0602 $ 0.0602 $ 0.0601 $ 0.0600 $ 0.0600 $ 0.0599 $ 0.0598 $ 0.0597 Overlapping Rates:

Los Angeles County
School Districts 0.3101 0.4015 0.5274 0.5233 0.6309 0.5320 0.5346 0.5425 0.5836 0.5881 Sanitation and Water
Water Districts 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 0.0070 Other 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 Total Direct Rlite $ 1.3706 $ 1.4619 $ 1.5876 $ 1.5870 $ 1.6944 $ 1.5955 $ 1.5981 $ 1.6059 $ 1.6468 $ 1.6548 Note: In 1978, California voters passed Proposition 13 which sets the property tax rRte 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.

Source: HdL
172
Taxpayer
Macerich Lakewood LLC
B9 MF 12350 DEL AMO LLC
Lakewood Manor Apmtments LLC
The Regents
Lakewood Marketplace LLC
May Company Department Stores
Douglas Park Associates IV LLC
Carwood Center LLC
The 5800 Apartment Homes LLC
Regency Center LLC
Total
City of Lakewood
Principal Property Taxpayers
Current Year and Nine Years Ago
2025
Percent
of Total City
Taxable Taxable
Assessed Assessed
Value Value
$ 416,976,140 3.25%
147,667,507 1.15%
104,106,034 0.81%
65,640,791 0.51%
45,171,759 0.35%
39,537,574 0.31%
39,052,454 0.30%
37,281,223 0.29%
35,871,661 0.28%
35,785,653 0.28%
$ 967,090,796 7.53%
2016
Percent
of Total City
Taxable Taxnble
Assessed Assessed
Value Value
$ 359,386,955 4.33%

NIA NIA
87,150,393 1.05%

NIA NIA
38,166,005 0.46%
34,123,276 0.41%

NIA NIA
31,640,274 0.38%

NIA NIA
29,125,890 0.35%
$ 579 592 793 7.0%
Note: The amounts shown above include assessed value data for both the City and the Redevelopment Agency. There are companes shown in 2025 that were not in Lakewood in 2016; thus, the NIA value in the 2016 columns.

Source: HdL Companies
173
174
Fiscal
Year Taxes Levied
Ended for the
June 30 Fiscal Year
2016 $ 4,553,569 $
2017 4,613,693
2018 4,960,161
2019 5,235,071
2020 5,406,685
2021 5,716,914
2022 5,943,809
2023 6,496,145
2024 6,597,752
2025 6,691,120
City of Lakewood
Property Tax Levies and Collections
Last Ten Fiscal Years
Collected within the
Fiscal Year of the Levy Collections
Percentage in Subsequent
Amount of Lev~ Years
4,452,399 97.78% $ 101,169
4,456,610 96.60% 157,083
4,808,236 96.94% 151,925
5,104,779 97.51% 130,292
5,286,360 97.77% 120,325
5,557,978 97.22% 158,936
5,615,340 94.47% 328,469
6,158,370 94.80% 337,775
6,280,152 95.19% 317,600
6,517,582 97.41% 173,538
Source: Department of Administrative Services, City of Lakewood 175
Total Collections to Date
Percentage
Amount of Levy
$ 4,553,568 100,00%
4,613,693 100.00%
4,960,161 100.00%
5,235,071 100.00%
5,406,685 100.00%
5,716,914 100.00%
5,943,809 100.00%
6,496,145 100.00%
6,597,752 100.00%
6,691,120 100.00%
Fiscal Year Ended
City of Lakewood
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental-Activities
June 30 Capital Financing Program Lease Payable SBIT A Payable 2016 $ $ 246,808 $
2017 211,244
2018 173,617
2019 883,811
2020 698,605
2021 507,107
2022 460,465 115,020
2023 264,466 159,252
2024 60,475 91,337
2025 10,500,000 8,585 18,078
Note: Details regm·ding the City's outstanding debt can be found in the notes to the financial statements.

Source: Department of Administrative Services, City of Lakewood 176
Total Governmental
Activities
$ 246,808
211,244
173,617
883,811
698,605
507,107
575,485
423,718
151,812
10,526,663
City of Lakewood
Ratios of Outstanding Debt by Type (Continued)
Last Ten Fiscal Years
$
Water
Revenue
Bo11ds
Business-type Activities
Loan Payoble to
Water
Replacement
District Lease Payable SBITA Payable
$ 789,921 $ 1,762,532 $
592,441 10,494,954
394,961 10,139,347
197,480 9,378,045
8,594,758
7,788,848
6,959,657 561,570
6,106,508 414,611
5,506,717 257,433
4,888,614 88,263
Total Businesstype Activities
$ 2,552,453
11,087,395
10,534,308
9,575,525
8,594,758
7,788,848
7,521,227
6,521,119
5,764,150
4,976,877
(I) These ratios are calculated using personal income and population for the prior calendar year.

Source: Department of Administrative Services, City of Lakewood 177
Total Primary
Government
$ 2,799,261
11,298,639
10,707,925
10,459,336
9,293,363
8,295,955
8,096,712
6,944,837
5,915,962
15,503,540
Percentage of
Personal Debt Per
Income<1> Capita <
1 >

0.12% 35

0.45% 139

0.42% 132

0.38% 131

0.34% 116

0.29% 103

0.23% 93

0.20% 87

0.17% 74

0.43% 192
178
Total Assessed Valuation
Overlapping Debt:

Metropolitan Water District
Cerritos Community College District
Compton Community College District
Long Beach Community College District
ABC Unified School District
Bellflower Unified School District
Long Beach Unified School District
Paramount Unified School District
Total overlapping debt
City Direct Debt:

Capital financing program
Lease payable
SBITA payable
Total Direct 1111d Overlapping Debt
City of Lakewood
Direct and Overlapping Debt
As of June 30, 2025
Percentage Applicnble 1

0.315

7.159

2.522

8.326

10.281

27.979

8.325

9.028
100.000%
100.000%
100.000%
$
$
$12,826,031,757
Outstnuding Debt
06/30/25
17,155,000
510, II 0,300
140,875,266
522,659,800
175,060,042
68,220,000
1,612,000,158
173,576,371
3,219,656,937
10,500,000
8,585
18,078
$
$
$
EsHmated Share of
Overhmping Debt
54,038
36,518,796
3,552,874
43,516,655
17,997,923
19,087,274
134,199,013
15,670,475
270,597,048
10,500,000
8,585
18,078
28),123,7] 1
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 goverrunental unit1 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 city1s ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident-and therefore responsible for repaying the debt-of each overlapping government.

Source: HdL
179
Assessed valuation (In thousands) $
Debt limit percentage
Debt limit (In thousands)
Total net debt applicable to the limit:

General obligation bonds (In thousands)
Legal debt margin (In thousands) $
Total debt applicable to the limit as a
percentage of debt limit
City of Lakewood
Legal Debt Margin Information
Last Ten Fiscal Years
Fiscal Ye11rs
2016 2017 2018
8,298,427 $ 8,698,092 $ 9,165,328
15% 15% 15%
1,244,764 1,304,714 1,374,799
1,244,764 $ 1,304,714 $ 1,374,799

0.0% 0.0% 0.0%
2019
$ 9,655,309
15%
1,448,296
$ 1,448,296

0.0%
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.

The City of Lakewood has no general bonded indebtedness.

Source: HdL
180
2020
$ 10,128,915
15%
1,448,296
$ 1,448,296

0.0%
Assessed valuation (In thousands)
Debt limit percentage
Debt limit (In thousands)
Total net debt applicable to the limit:

City of Lakewood
Legal Debt Margin Information (Continued)
Last Ten Fiscal Years
Fiscsil Years
2021 2022 2023
$ 10,618,540 $ 11,042,873 $ 11,715,062
15% 15% 15%
1,592,781 1,757,259
General obligation bonds (In thousands)
Legal debt margin (In thousands) $ 1,592,781 $ $ 1,757,259 Total debt applicable to the limit as a
percentage of debt limit 0.0% 0.0% 0.0%
2024
$ 12,279,682
15%
1,841,952
$ 1,841,952

0.0%
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.

The City of Lakewood has no general bonded indebtedness.

Source: HdL
181
2025
$ 12,826,030
15%
1,923,905
$ 1,923,905

0.0%
City of Lakewood
Pledged-Revenue Coverage
Last Ten Fiscal Years
(In thousands)
Water Revenue Bonds
Fiscal Year Less: Net
Ended Water Opernting Available Debt Service
June 30 Revenue Expenses Revenue Principal Interest Coverage 2016 $ 10,931 $ 7,849 $ 3,082 $ 687 $ 67
2017 I0,873 7,280 3,593 233 45
2018 13,004 9,589 3,415 233 38
2019 13,355 10,473 2,882 245 32
2020 12,869 I0,112 2,757 251 27
2021 13,965 8,313 5,652 257 20
2022 13,787 9,286 4,501 271 7
2023 13,497 9,479 4,018
2024 12,992 8,524 4,468
2025 15,828 8,492 7,336
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 182

4.09 12.92

12.60 10.40

9.92 20.40

16.19 100.00
100.00
100.00
Fiscal Year
Ended
June30
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
$
City of Lakewood
Pledged-Revenue Coverage (Continued)
Last Ten Fiscal Years
Tax
Increment
1,430
1,432
1,425
(In thousands
Tax Allocation Bonds
Principal
$
Debt Service
1,265
1,330
1,390
$
Interest
165
102
35 Covernge

1.00 1.00

1.00 Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements. The City had no outstanding tax allocation bonds, and therefore no related pledgedMrevenue coverage, after fiscal year 2018. Operating expenses do not include interest, depreciation, or amortization expenses.

Source: Department of Administrntive Services, City of Lakewood 183
Calendar
Year
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Sources: Hdl/Bureau of Labor Statistics
City of Lakewood
Demographic and Economic Statistics
Last Ten Calendar Years
Personal
Income
Per
Capita
(thousands Personal
Population (1) of dol/ars2 (2) Income (2)
78,471 $ 2,426,233 $ 30,918
79,272 2,406,040 30,351
81,179 2,490,791 30,682
81,352 2,579,207 31,704
79,919 2,743,438 34,327
80,218 2,836,725 35,362
80,876 2,909,229 35,971
80,154 3,184,601 39,731
80,162 3,511,442 43,804
80,596 3,578,185 44,396
184
Unemployment
Rate (3)

5.2%

4.0%

3.3%

4.4%

4.1%

12.2%

8.3%

4.3%

4.3%

5.1%
Division
City Administration
Communications
City Clerk
Administrative Services
Community Development
Public Safety
Public Works
Recreation and Community Services
Water Resources
Total
City of Lakewood
Full-Time City Employees by Function
Last Ten Fiscal Years
Fiscal Years
2016 2017 2018 2019 2020 2021
30 30 29 29 29 13
12 2 2 2 2 2 2
21 21 20 20 20 23
14 14 14 14 13 14
7 32 32 32 32 32 33
62 62 61 61 58 59
19 19 17 17 17 17
180 180 175 175 171 180
2022 2023
13 16
11 7
2 5
22 21
14 15
7 7
30 33
58 60
15 17
172 181
Note: Communications and Public Safety are new departments in FY 20/21. They split from the Administration department.

Source: Department of Administrative Services, City of Lakewood/Department of Human Resources , City of Lakewood 185
2024 2025
15 18
12 10
2 2
23 23
14 14
8 8
34 35
61 60
17 16
186 186
Public works:

Street resurfacing (miles)
Recreation and community services:

Number of recreation classes
Number of facility rentals
Water
New connections
Number of consumers
Average daily consumption
(thousands of gallons)
Community development
Number of building permits issued •
City of Lakewood
Operating Indicators by Function
Last Ten Fiscal Years
Fiscal Years
2016 2017 2018
1,931 1,711 1,924
7,919 5,838 1,577**
2 7 4
20,481 20,180 20,196
5,887 6,262 6,050
4,408 4,051 3,986
*Includes both residential and commercial permits.

Source: City of Lakewood
186
2019 2020
3 1,888 1,355
1,715** 1,446**
9 7
20,148 20,255
5,954 6,014
3,765 3,396
Public works:

Street resu1facing (miles)
Recreation and community services:

Number of recreation classes
Number of facility rentals
Water
New connections
Number of consumers
Average daily consumption
(thousands of gallons)
Community development
Number of building permi~ issued
City of Lakewood
Operating Indicators by Function (Continued)
Last Ten Fiscal Years
Fiscal Years
2021 2022 2023

9.4 9.0
3,608 1,365 1,397
539••· 1,356 1,402
8 14 34
20,159 20,123 20,178
5,988 5,986 5,667
• 3,960 4,ll l 4,953
*Includes both residential and commercial permits.
**In November 2016 the RCS Department initiated a transition from CLASS facility booking software to the ActiveNet online system. For the duration of2017 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 COVJD-19 pandemic.

Source: City of Lakewood
187
2025
1,483 1,184
1,315 1,098
16 16
20,185 20,027
5,611 6,155
4,065 4,246
Public works:

Streets (miles)
Streetlights
Recreation and community services:

Number of recreation facilities
Acreage of facilities
Number of pools
Water
Water mains (miles)
Wastewater
Sewers (miles)
Source: City of Lakewood
City of Lakewood
Capital Assets Statistics by Function
Last Ten Fiscal Years
Fiscal Yeal's
2016 2017 2018
196 196 196
6,654 6,654 6,654
13 13 13
189 189 189
2 2 2
195 195 195
167 167 167
188
2019 2020
196 196
6,654 6,654
13 13
189 189
2 2
195 195
167 167
Public works:

Streets (miles)
Streetlights
Recreation and community services:

Number of recreation facilities
Acreage of facilities
Number of pools
Water
Water mains (miles)
Wastewater
Sewers (miles)
Source: City of Lakewood
City of Lakewood
Capital Assets Statistics by Function (Continued)
Last Ten Fiscal Years
Fiscal Years
2021 2022 2023
196 196 196
6,654 6,654 6,654
13 13 13
189 189 189
2 2 2
195 195 195
167 167 167
189
2024 2025
196 196
6,654 6,654
13 13
189 189
2 2
195 195
167 167
190
6 Hutton Centre Drive, Suite 1200 /o,i
Santa Ana, California 92707 ~
www.pungroup.cpa (wJ

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE

AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED

IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
I11depe11de11t Auditor's Report
To the Honorable Mayor and the Members of the City Council of the City of Lakewood
Lakewood, California
We have a udited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financ ial audits contained in Government Auditing Standards issued by the Comptroller General of the United States ("Government Auditing Standards''), the financ ial statements of the City of Lakewood, California (the "City), as of and for the year ended June 30, 2025, and the re lated notes to the financial statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated November 26, 2025.

Repo1i on Internal Control Over Financial Reporting
In planning and perfo rming our audits of the financial statements, we considered the City's internal contro l over financial reporting (" internal control") as a basis for designing audit procedures that are appropriate in the c ircumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. According ly, we do not express an opinion on the effectiveness of the City's interna l control.

A deficiency in internal control exists w hen the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements o n a time ly basis. A material weakness is a deficiency, or a combination of defic iencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and conected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged w ith governance.

O ur consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify a ll deficiencies in internal control that might be material weaknesses or significant deficiencies.

Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.

ORANGE COUNTY • SAN DIEGO • SACRAMENTO • WALNUT CREEK • LAS VEGAS • PHOENIX To the Honorable Mayor and the Members of the City Council of the City of Lakewood
Lakewood, California