Lawndale City Council
April 18, 2022

CITY OF LAWNDALE
14717 Burin Avenue, Lawndale, California 90260
Phone (310) 973-3200 – www.lawndalecity.org
AGENDA

LAWNDALE CITY COUNCIL REGULAR MEETING
Monday, April 18, 2022 - 6:30 p.m.

Lawndale City Hall Council Chamber
14717 Burin Avenue
Any person who wishes to address the City Council regarding any item listed on this agenda or any other matter that is within its subject matter jurisdiction is invited, but not required, to fill out a Public Meeting Speaker Card and submit it to the City Clerk prior to the oral communications portion of the meeting. The purpose of the card is to ensure that speakers' names are correctly recorded in the meeting minutes and, where appropriate, to provide contact information for later staff follow-up. You are still eligible to submit comment via the Temporary eComment Policy for Public Meetings, the comments will be read verbatim into the record.

How to observe the Meeting:

To maximize public safety while still maintaining transparency and public access, members of the public can now observe the meeting in person, with limited capacity, while strictly adhering to the City Facilities Entry Protocols. Members of the public are still be able to view the meeting on YouTube “Lawndale CityTV”, the City Website, or Lawndale Community Cable Television on Spectrum & Frontier Channel 3.

Copies of this Agenda packet may be obtained prior to the meeting outside of the Lawndale City Hall foyer or on the City Website.

Interested parties may contact the City Clerk Department at (310) 973-3213 for clarification regarding individual agenda items.

This Agenda is subject to revision up to 72 hours before the meeting.

A. CALL TO ORDER AND ROLL CALL
B. CEREMONIALS (Flag Salute and Inspiration)
C. PUBLIC SAFETY REPORT
D. ORAL COMMUNICATIONS - ITEMS NOT ON THE AGENDA (Public Comments) E. COMMENTS FROM COUNCIL
F. CONSENT CALENDAR
Items 1 through 6, will be considered and acted upon under one motion unless a City Councilmember removes individual items for further City Council consideration or explanation.

1. Motion to read by title only and waive further reading of all ordinances listed on the Agenda
Recommendation: that the City Council approve.

2. Recognition of 100th Birthday Charles “Mac” MacQuarrie Recommendation: that the City Council receive and file.

3. Redondo Beach Transit Center Use Agreement for Lawndale Beat Fixed-Route Agenda
City Council Regular Meeting
April 18, 2022

Transportation System
Recommendation: that the City Council (a) approve the attached Redondo Beach Transit Center Use Agreement between the City of Redondo Beach and the City of Lawndale and (b) authorize Mayor Robert Pullen-Miles to sign the attached agreement.

4. Quarterly Investment Report for the Quarter Ended March 31, 2022 Recommendation: that the City Council receive and file the Quarterly Investment Update for the quarter ended March 31, 2022.

5. Accounts Payable Register
Recommendation: that the City Council adopt Resolution No. CC-2204-017, authorizing the payment of certain claims and demands in the amount of $673,765.64.

6. Minutes of the Lawndale City Council Regular Meeting – April 4, 2022 Recommendation: that the City Council approve.

G. PUBLIC HEARING

7. Amendment to the Lawndale Municipal Code to Comply with the Requirements of Senate Bill 9
Recommendation: that the City Council (a) conduct a public hearing (b) determine that Ordinance No. 1188-22 is exempt from the California Environmental Quality Act (“CEQA”) pursuant to Division 13 (commencing with Section 21000) of Public Resources Code and Government Code sections 65858.21(j) and 66411.7(n) because an ordinance adopted to implement the rules of Senate Bill 9 is not considered a project under Division 13 and (c) approve Ordinance No. 1188-22 by four fifths (4/5) vote of the City Council to extend Interim Urgency Ordinance No. 1186-22 by 10 months and 15 days.

8. Case No. 22-09 Consideration of an Urgency Ordinance to Establish Rules and Regulations for Carwash Facilities within the City of Lawndale Recommendation: that the City Council (a) conduct a public hearing (b) determine that Ordinance No. 1189-22 is exempt from the California Environmental Quality Act (“CEQA”) pursuant to California Code of Regulations, Title 14, Section 15060, subdivision (c)((2), because the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment, and Section 15061 subdivision (b)(3) because the activity has no potential for resulting in physical change to the environment, direct or indirectly and so is not a project and (c) approve Ordinance No. 1189-22 by a four-fifths (4/5) vote of the City Council.

H. ADMINISTRATION

9. Approval of Adjustment to 2021-2022 Budget for Staff Reclassification Recommendation: that the City Council approve the reclassification from Code Enforcement I to Code Enforcement II in the 2021-2022 budget.

10. Award of Construction Contract to Superior Pavement Markings, Inc. and Agenda
City Council Regular Meeting
April 18, 2022

Inspection Services to RKA Consulting Group for the FY 2021/2022 Citywide Sign Replacement Project No. 2022-12
Recommendation: that the City Council (a) award construction contract in the amount of $933,309 to Superior Pavement Markings , Inc for the FY 2021/2022 Citywide Sign Replacement Project, (b) award construction management services in the amount of $106,275 to RKA Consulting Group for the FY 2021/2022 Citywide Sign Replacement, (c) approve the construction contingency amount of $186,662 for the project to avoid delays and facilitate timely project completion, (d) authorize the Director of Finance to decrease the appropriations from the Proposition C funds for the Redondo Beach Blvd (Hawthorne Blvd – Artesia Blvd) Improvement Project (207-310-700.277) by $719,168, (e) authorize the Director of Finance to appropriate $719,168 from Proposition C Unappropriated Fund Balance to the account number 207-310-700.281 Capital Improvement Program for FY 2021/2022 Citywide Sign Replacement Project and (f) authorize the Director of Finance to appropriate $507,078 from Measure M Unappropriated Fund Balance to the account number 272-310-700.281 Capital Improvement Program for FY 2021/2022 Citywide Sign Replacement Project.

11. Street Parking Study of Mansel Ave.

Recommendation: that the City Council approve the removal of the existing two signs “No Parking, 8:00 a.m. - 4:00 p.m., Monday through Friday” in order to add approximately four street parking spaces.

12. Approval and Amendment to the City-wide Salary and Pay Schedule and Salary and Benefits Resolution for Central Management Employees Recommendation: that the City Council (a) adopt Resolution No. CC-2204-018, approving the Amendment to the Schedule of Salary and Benefits for the Central Management Employees; (b) allocate $19,536 from the General Fund Salaries Line Item 100-501.100 for this adjustment; and (c) adopt Resolution No. CC-2204-019, approving the amendment to the 2021-2022 City-wide Salary and Pay Schedule.

13. Approve and Authorize the Purchase of Citywide Telephone Equipment and Service Plan
Recommendation: that the City Council (a) authorize the Finance Department to allocate $58,000 from the Restricted Urban Development Fund, Operating Transfers-Out (215- 160-560.100) to the General Fund, Operating Transfers-In (100-000.480.100) and (b) approve and authorize the City Manager or designee to purchase citywide telephone equipment and data service plan in an amount not to exceed the approved budgeted amount of $58,000.

14. Comprehensive Annual Financial Report (CAFR)
Recommendation: that the City Council receive and file the Comprehensive Annual Financial Report for the Year Ended June 30, 2021.

15. Updated Illegal Fireworks Suppression Plan for 2022 Recommendation: that the City Council review the Illegal Fireworks Suppression Plan and give direction to staff as to which option is most favorable moving forward.

I. ITEMS FROM CITY COUNCILMEMBERS
Agenda
City Council Regular Meeting
April 18, 2022

16. Presentation from Mr. Kenneth Miller - Lawndale Times Newspaper Requested by Councilmember Sirley Cuevas.

Recommendation: that the City Council receive a presentation from Mr. Kenneth Miller.

17. Recruitment and Retention of Deputy Sheriff’s- Support Letter Requested by Rudy Bermudez, Association for Los Angeles Deputy Sheriffs Requested by Councilmember Pat Kearney.

Recommendation: that the City Council provide direction on the Mayor and City Councilmembers signing such letter and, if approved, direct the City Manager’s office to finalize and mail the letter to Supervisor Holly J. Mitchell, as requested by Association for Los Angeles Deputy Sheriffs (ALADS).

18. Mayor/City Councilmembers Report of Attendance at Meetings and/or Events J. CLOSED SESSION

19. Conference with Labor Negotiator
The City Council will conduct a closed session, pursuant to Government Code section 54957.6, with the city manager, the city attorney and the City's negotiators, regarding labor negotiations with Local 1895, Council 36, American Federation of State, County and Municipal Employees, AFL-CIO, representing the City's mid-management and classified employees

20. Conference with Legal Counsel – Existing Litigation The City Council will conduct a closed session, pursuant to Government Code sections 54956.9(d)(1) for the matter entitled Arcadia, et al. v. So. Cal. Edison Corp., Santa Barbara Superior Court Case No. 20 CV 02026
K. ADJOURNMENT
The next regularly scheduled meeting of the City Council will be held at 6:30 p.m. on Monday, May 2, 2022 in the Lawndale City Hall council chamber, 14717 Burin Avenue, Lawndale, California.

It is the intention of the City of Lawndale to comply with the Americans with Disabilities Act (ADA) in all respects. If, as an attendee or a participant at this meeting, you will need special assistance beyond what is normally provided, we will attempt to accommodate you in every reasonable manner. Please contact the City Clerk Department (310) 973-3213 prior to the meeting to inform us of your particular needs and to determine if accommodation is feasible. Please advise us at that time if you will need accommodations to attend or participate in meetings on a regular basis.

I hereby certify under penalty of perjury under the laws of the State of California that the Agenda for the regular meeting of the City Council to be held on April 18, 2022 was posted not less than 72 hours prior to the meeting.
____________________________________
Agenda
City Council Regular Meeting
April 18, 2022

Cynthia Rodriguez, Administrative Assistant
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3 City Council Meeting - April 18, 2022
Redondo Beach Transit Center Use Agreement for Lawndale Beat Fixed-Route Transportation System Contact Details:

The previous agreement between the City of Lawndale and Redondo Beach expired December 31, 2021 while the Lawndale Beat was out of service. However, the new agreement (see attached) between the City of Lawndale and the City of Redondo Beach will be effective July 1, 2022 through December 31, 2027.

The annual rent for the use of the RBTC will remain at $1.00 and is payable to the City of Redondo Beach on January 1, or thereabouts, each year. All other contract details included in previous agreements have been included in the newly attached agreement and there are no other changes.

LEGAL REVIEW
The City Attorney's office has reviewed the attached use agreement and has approved it as to form.

FISCAL IMPACT
The $1.00 annual fee will be paid for with Community Services Department, Proposition A funds.

RECOMMENDATION
Staff recommends that the City Council: 1) approve the attached Redondo Beach Transit Center Use Agreement between the City of Redondo Beach and the City of Lawndale; and 2) authorize Mayor Robert Pullen-Miles to sign the attached agreement.

Attachments: Redondo Beach Transit Center Use Agreement

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MINUTES OF THE

LAWNDALE CITY COUNCIL REGULAR MEETING
April 4, 2022
A. CALL TO ORDER AND ROLL CALL
Mayor Pullen-Miles called the meeting to order at 6:31 p.m. in the City Hall council chamber, 14717 Burin Avenue, Lawndale, California.

Councilmembers Present: Mayor Robert Pullen-Miles, Mayor Pro Tem Rhonda Hofmann Other Participants:

Gorman, Councilmember Bernadette Suarez, Councilmember Pat Kearney, Councilmember Sirley Cuevas
City Clerk Erica Harbison, City Manager Sean M. Moore, City Attorney Gregory M. Murphy, Assistant to the City
Manager/Human Resources Director Raylette Felton, Los Angeles County Sheriff's Department Sergeant Ricky L. Osburn, Interim Finance Director John Downs, Community Services Director Mike Estes, Municipal Services Director Michael Reyes, Acting Director of Community Development Jared Chavez, Public Works Director Julian Lee
B. CEREMONIALS
Mayor Pro Tem Rhonda Hofmann Gorman led the flag salute and Pastor George Magdalany, with Hope Chapel Hawthorne, provided the inspiration.

C. PUBLIC SAFETY REPORT
Los Angeles County Sheriff's Department Sergeant Ricky L. Osburn summarized the recent law enforcement activities.

D. PRESENTATION

1. Recognition of Lawndale High School Lady Cardinals Basketball Champions 2022 CIF-SS Division 4AA Championship
The City Council and Lawndale High School staff presented Certificates of Commendation Recognizing Outstanding Athletic Achievement to the Lawndale High School Lady Cardinals Basketball Champions 2022 CIF-SS Division 4AA Championship.

E. ORAL COMMUNICATIONS - ITEMS NOT ON THE AGENDA (Public Comments) Gary Adams, Resident, spoke about the parking citations issued to heavy duty trucks parked on Mansel Ave., the continuous potential code violations and business license for RJ’s Construction Supply, business located on 4505 Manhattan Beach Blvd.

Michelle Pino, Lawndale Library Manager, spoke about upcoming library programs and events. 6 Minutes-City Council Regular Meeting
April 4, 2022

Dina, Resident, spoke about the Grand Opening of the nursery business, C&S Garden Center, and an incident near her residence involving a resident walking a dog with an extended leash.

Randall Abram, Resident, spoke about the audit of fireworks sales, need for review of Municipal Code and fireworks plan, and wholesale firework permit and hours of use at other cities.

Vicky Shahbazian, Business Owner, spoke about citations and claims reported against her business Hawthorne Motors Express.

Hoss Shahbazian, Business Owner, spoke about changes in City management and code enforcement citations and claims reported against his business Hawthorne Motors Express.

John Dyksul, Resident, spoke about parking issues in the City and requested a variance for parking spaces parallel to the street.

F. COMMENTS FROM COUNCIL
The City Council responded generally to the public comments.

Councilmember Pat Kearney requested code enforcement staff to review animal extended pet leash concerns.

Councilmember Sirley Cuevas requested staff to look into firework permit fees for fireworks manufacturers to contribute to Sheriff’s services.

Mayor Pro Tem Rhonda Hofmann Gorman requested staff research business records reported missing and the status of the business license related to RJ’s Construction Supply, business property located on 4505 Manhattan Beach Blvd.

City Manager Sean M. Moore responded the code case with RJ’s Construction Supply, business property located on 4505 Manhattan Beach Blvd., is open and ongoing and correspondence was sent related to the business license. City Manager Sean M. Moore added staff previously researched City files for the records for the business located on 4505 Manhattan Beach Blvd. and confirmed the records are missing. City Manager Sean M. Moore further added he will work with Councilmember Sirley Cuevas to discuss placing an item on agenda related to firework wholesale vendor permits.

G. CONSENT CALENDAR

2. Motion to read by title only and waive further reading of all ordinances listed on the Agenda
Recommendation: that the City Council approve.

3. National April 2022 - DMV/ Donate for Life Month Proclamation Recommendation: that the City Council receive and file the report.

4. Accounts Payable Register
Minutes-City Council Regular Meeting
April 4, 2022

Recommendation: that the City Council adopt Resolution No. CC-2204-016, authorizing the payment of certain claims and demands in the amount of $136,653.40

5. Minutes of the Lawndale City Council Regular Meeting – March 21, 2022 Recommendation: that the City Council approve.

A motion by Councilmember Pat Kearney to approve the consent calendar was seconded by Councilmember Bernadette Suarez and carried by a vote of 5-0.

H. ADMINISTRATION

6. California State Proposition 68 Per Capita Grant Agreement Recommendation: that the City Council (a) authorize the City Manager to sign the attached 2018 Parks Bond Act agreements such as Contract No. C9801318 and Contract No.

C9802118 provided by the California State Department of Parks and Recreation.

Community Services Director Mike Estes provided the staff report for the California State Proposition 68 Per Capita Grant Agreement.

Councilmember Pat Kearney requested children participate in the design of the Hogan Park Monument sign project.

Mayor Pro Tem Rhonda Hofmann Gorman inquired if the Recreation Facility Security Camera Replacement Project will create a central hub with access to all cameras and a remote access option.

Community Services Director Mike Estes responded the project would include remote access by to view anywhere on any mobile device or computer.

A motion by Councilmember Sirley Cuevas to authorize the City Manager to sign the attached 2018 Parks Bond Act agreements such as Contract No. C9801318 and Contract No. C9802118 provided by the California State Department of Parks and Recreation.

Councilmember Pat Kearney second the motion which carried by a vote of 5-0.

7. Approval to Authorize Budget Amendment for Inglewood Avenue Phase I Street Improvement Project
Recommendation: that the City Council authorize the Director of Finance Department: (a) decrease the appropriations from the 2009 Tax Allocation Bond funds for the Inglewood Avenue Street Improvement Project (307-610-700.151) by $456,469 (b) decrease the appropriations from the Proposition C funds for the Redondo Beach Blvd (Hawthorne Blvd – Artesia Blvd) Improvement Project (207-310-700.277) by $487,276.71 and (c) appropriate $487,276.71 to the Proposition C funds for the Inglewood Avenue Street Improvement Project (207-310-700.151) from Proposition C unappropriated fund balance.

Public Works Director Julian Lee provided the staff report for approval to Authorize Budget Amendment for Inglewood Avenue Phase I Street Improvement Project.

Councilmember Pat Kearney commented the Inglewood Ave Project was already funded and inquired if the transferring of the funds will offset and replace the funds in to the project.

Minutes-City Council Regular Meeting
April 4, 2022

Public Works Director Julian Lee responded yes.

A motion by Councilmember Bernadette Suarez to authorize the Director of Finance Department: decrease the appropriations from the 2009 Tax Allocation Bond funds for the Inglewood Avenue Street Improvement Project (307-610-700.151) by $456,469 , decrease the appropriations from the Proposition C funds for the Redondo Beach Blvd (Hawthorne Blvd – Artesia Blvd) Improvement Project (207-310-700.277) by $487,276.71 and appropriate $487,276.71 to the Proposition C funds for the Inglewood Avenue Street Improvement Project (207-310-700.151) from Proposition C unappropriated fund balance.

Mayor Pro Tem Rhonda Hofmann Gorman second the motion which carried by a vote of 5-0.

8. Case No. 21-18: Proposal for a Special Use Permit, General Plan Amendment, Density Bonus and Design Review to Develop a 10-Unit Apartment Building at the Property Located at 14723 Prairie Avenue with conditions; second reading of Ordinance No. 1187-22.

Recommendation: that the City Council (a) read by title only, waive further reading, and (b) adopt Ordinance No. 1187-22.

City Attorney Gregory M. Murphy read the title of the ordinance.

A motion by Councilmember Bernadette Suarez to read by title only, waive further reading, and adopt Ordinance No. 1187-22. Councilmember Pat Kearney second the motion. Motion carried by roll call vote of 5-0.

9. Authorize the Repair of the Heating, Ventilating and Air Conditioning (HVAC) System at the Harold E. Hofmann Community Center
Recommendation: that the City Council authorize the repair of the HVAC System at Community Center by South Coast Facility Services in the amount not to exceed $33,456.

Public Works Director Julian Lee provided the staff report for the authorization for the Repair of the Heating, Ventilating and Air Conditioning (HVAC) System at the Harold E. Hofmann Community Center.

Councilmember Sirley Cuevas inquired if any of the proposers are Lawndale businesses.

Public Works Director Julian Lee responded proposals received were not from Lawndale businesses and staff considered reputable companies when making recommendation.

A motion by Councilmember Pat Kearney to authorize the repair of the HVAC System at Community Center by South Coast Facility Services in the amount not to exceed $33,456.

Councilmember Sirley Cuevas second the motion which carried by a vote of 5-0.

10. Authorize the Purchase and Installation of Touchless Main Entrance Doors at the Harold E. Hofmann Community Center
Recommendation: that the City Council authorize the purchase and installation of touchless main entrance doors from Vortex Industries in the amount not to exceed $24,112.49 Minutes-City Council Regular Meeting
April 4, 2022

Public Works Director Julian Lee provided the staff report for the authorization to Purchase and Installation of Touchless Main Entrance Doors at the Harold E. Hofmann Community Center.

Councilmember Sirley Cuevas inquired if a warranty is provided and a maintenance contract is available. Councilmember Sirley Cuevas also inquired on the difference in doors with Waypoint and Vortex.

Public Works Director Julian Lee responded the City currently has a one year warranty, but do not have a maintenance contract. Public Works Director Julian Lee mentioned the current doors for Municipal Services Department, City Hall, and Public Works Department were installed by Vortex and have had no issues. Public Works Director Julian Lee further added the Waypoint’s proposal was incomplete as it would require the use of the existing doorframe, but the project requires a complete new unit.

Councilmember Bernadette Suarez if the components of the doors that can be salvaged and recycled.

Public Works Director Julian Lee responded due to the current issues with door, the components of the door is not salvageable and will need to be replaced.

Mayor Robert Pullen-Miles inquired if there will be a full supply of parts for future request.

Public Works Director Julian Lee responded the Department is confident Vortex will have parts available.

A motion by Councilmember Sirley Cuevas to authorize the purchase and installation of touchless main entrance doors from Vortex Industries in the amount not to exceed $24,112.49. Councilmember Pat Kearney second the motion which carried by a vote of 5-0.

I. ITEMS FROM CITY COUNCILMEMBERS

11. Mayor/City Councilmembers Report of Attendance at Meetings and/or Events Councilmember Pat Kearney attended the Coffee with a Cop event and the ribbon cutting events for La Michoacana and C&S Garden Center.

Councilmember Bernadette Suarez attended the South Bay Cities Council of Governments General Assembly, Coffee with a Cop event, and the ribbon cutting events for La Michoacana and C&S Garden Center.

Councilmember Sirley Cuevas attended El Camino College’s “CommUnity Walk Against Hate”, Coffee with a Cop event, and the ribbon cutting events for La Michoacana and C&S Garden Center.

Mayor Pro Tem Rhonda Hofmann Gorman attended the Coffee with a Cop event, commended all City staff and residents for attending. Mayor Pro Tem Rhonda Hofmann Gorman invited residents to sign up for Neighborhood Watch and reminded everyone to vote and attend Lawndale’s Easter Egg Hunt on April 16th.

Minutes-City Council Regular Meeting
April 4, 2022

Mayor Pro Tem Rhonda Hofmann Gorman inquired if a meeting could be arranged between the City Council, the City Manager, Municipal Services Director and the Sheriffs to discuss the city’s expectations and work together to meet them now that a new Lieutenant and Sergeant has been assigned to the City.

City Manager Sean M. Moore responded an item for an Ad Hoc Advisory Committee can be added on a subsequent agenda.

Mayor Robert Pullen-Miles reminded the City has quarterly meeting with the Sheriff’s Department and recommended having this discussion during this meeting.

A dialogue ensued between staff and City Council regarding the quarterly meeting and an ad hoc Sheriff’s Department subcommittee.

Mayor Robert Pullen-Miles attended the grand opening event for La Michoacana and the Los Angeles County Sanitation District regular meeting.

Mayor Pro Tem Rhonda Hofmann Gorman requested City Council provide a recognition to Mr.

Charles MacQuarrie, long time Lawndale resident, owner of Mac’s Old Time Radio Museum in Lawndale, WWII Veteran, presenter at Lawndale Memorial Day events for turning 100 years of age on April 21, 2022.

J. ADJOURNMENT
There being no further business to conduct, the Mayor adjourned the meeting at 8:17 p.m. _________________________________
Robert Pullen-Miles, Mayor
ATTEST:
_________________________________
Erica Harbison, City Clerk
Approved: / /
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Ordinance No. 1186-22
01001.0001/539798.2
8 SECTION 5. CEQA. This Ordinance is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Division 13 (commencing with Section 21000) of Public Resources Code and Government Code sections 65858.21(j) and 66411.7(n)) because an ordinance adopted to implement the rules of Senate Bill 9 is not considered a project under Division 13.

SECTION 6. Severability. If any section, subsection, sentence, clause, or phrase of this ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of any competent jurisdiction, such decision shall not affect the validity of the each and every section, subsection, sentence, clause and phrase thereof not declared invalid or remaining portions of this ordinance. The City Council hereby declares that it would have passed this ordinance, and unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional.

SECTION 7. Urgency. The City Council finds and declares that the adoption and implementation of this ordinance is necessary to address the danger to public health, safety, and general welfare as articulated above, and to immediately provide provisions to implement SB 9, which takes effect on January 1, 2022. The City Council therefore finds and determines that this ordinance be enacted as an urgency ordinance pursuant to Government Code sections 36937 and 65858 and takes effect immediately upon adoption by four-fifths of the City Council.

SECTION 8. Expiration. This ordinance shall take effect upon publication, and shall remain in effect for a period of 45 days from the date of adoption, in accordance with California Government Code section 65858, unless earlier rescinded by the adoption of another ordinance.

SECTION 9. Publication. The City Clerk is directed to certify this ordinance and cause it to be published in the manner required by law.

PASSED, APPROVED, AND ADOPTED this ___ day of _________, 2022. ______________________________
Robert Pullen-Miles, Mayor
ATTEST:

State of California )
County of Los Angeles ) SS
City of Lawndale )
I, Erica Harbison, City Clerk of the City of Lawndale, California, do hereby certify that the City Council duly approved and adopted said Ordinance No. 1186-22 at its regular meeting held on the 21st day of March 2022, by the following roll call vote:

8 Updated Case 22-09 Urgency Ordinance car wash - Page 2 of 2 9 10

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City Council Meeting - April 18, 2022
Amendment to CMT Salary and Benefit Schedule and Citywide Salary and Pay Schedule

FISCAL IMP ACT
The total cost for the implementation ofthis amendment is $37,298. The cost to implement through the end of the current fiscal year is $19,536. Based on the Final Guidelines issued in January 2022, the City has the ability to use a portion of the American Rescue Plan Act (ARPA) funds to reimburse for the expense for the one-timeAPRA payment in the amount of $8,000. As a result, the total impact to the General Fund to fund the salary adjustments the CMT positions will be $11,536. The second year costs for this implementation will be an additional $9,895, which will be budgeted during the in next fiscal year 2022-2023 budget process.

RECOMMENDATION
Staff recommends that the City Council 1) adopt Resolution No. CC-2204-018, approving the Amendment to the Schedule of Salary and Benefits for the Central Management Employees; 2) allocate $19,536 from the General Fund Salaries Line Item-100-501.100 for this adjustment; and 3) adopt Resolution No. CC-2204-019, approving the amendment to the 2021-2022 City-wide Salary and Pay Schedule.

Attachment (s): 1). Resolution No. CC-2204-018 -Amending to the Schedule of Salary and Benefits for the Central Management Employees
2). Resolution No. CC-2204-019 - Amendment to the 2021-2022 City-wide Salary and Pay Schedule
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City of Lawndale,
California

ANNUAL COMPREHENSIVE

FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
Prepared by:

Finance Department

THIS PAGE INTENTIONALLY LEFT BLANK
City of Lawndale
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2021

TABLE OF CONTENTS
Page
Number

INTRODUCTORY SECTION
Letter of Transmittal .................................................................................................................... i Directory of Officials ................................................................................................................. vii Organizational Chart ............................................................................................................... viii GFOA Certificate of Achievement for Excellence in Financial Reporting ................................... ix

FINANCIAL SECTION
Independent Auditor’s Report .................................................................................................... 1 Management’s Discussion and Analysis .................................................................................... 4 Basic Financial Statements:

Government-Wide Financial Statements
Statement of Net Position .................................................................................................. 17 Statement of Activities ....................................................................................................... 18 Fund Financial Statements
Balance Sheet - Governmental Funds ............................................................................... 19 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ............................................................................................... 20 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds .................................................................................... 21 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities ............................ 22 Statement of Fiduciary Net Position – Fiduciary Funds ...................................................... 23 Statement of Changes in Fiduciary Net Position –
Fiduciary Funds .............................................................................................................. 24 Notes to Financial Statements ................................................................................................. 25

REQUIRED SUPPLEMENTARY INFORMATION
Notes to Required Supplementary Information ........................................................................ 76 Budgetary Comparison Schedules
General Fund ....................................................................................................................... 77 Restricted Urban Development ............................................................................................ 78 Pension Plan
Schedule of the City’s Proportionate Share of Net Pension Liability and Related Ratios as of the Measurement Date - CalPERS Cost Sharing Miscellaneous Plan ....................... 79 Schedule of Plan Contributions - CalPERS Cost Sharing Miscellaneous Plan ...................... 80 Schedule of Changes in Net Pension Liability and Related Ratios as of the Measurement Date - PARS Retirement Enhancement Plan ..................................................................... 81 Schedule of Plan Contributions - PARS Retirement Enhancement Plan ............................... 83 Schedule of Investment Returns - PARS Retirement Enhancement Plan ............................. 84 Schedule of Changes in the Total OPEB Liability and Related Ratios ........................................... 85 City of Lawndale
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2021
TABLE OF CONTENTS (Continued)
Page
Number

SUPPLEMENTARY INFORMATION
Combining Balance Sheet – Non-Major Governmental Funds ................................................. 88 Combining Statement of Revenues, Expenditures and
Changes in Fund Balances – Non-Major Governmental Funds ............................................ 93 Budgetary Comparison Schedule – Special Revenue Funds
Gas Tax ............................................................................................................................... 98 Air Quality ............................................................................................................................ 99 Proposition A Local Transit Assistance ............................................................................... 100 Narcotics Forfeiture ............................................................................................................ 101 State COPS Grant .............................................................................................................. 102 CA Law Enforcement Equipment ........................................................................................ 103 Used Oil Recycling Grant ................................................................................................... 104 Lawndale Cable Usage Corporation ................................................................................... 105 Department of Conservation Grant ..................................................................................... 106 Park Development .............................................................................................................. 107 Measure M Local Return .................................................................................................... 108 LA County Park Maintenance Grant ................................................................................... 109 SB1 RMRA ......................................................................................................................... 110 Groundwater Sustainability (AB 939) .................................................................................. 111 Disability Access (AB 1379) ............................................................................................... 112 Measure W Safe Clean Water ............................................................................................ 113 Coronavirus Relief Fund ..................................................................................................... 114 Lawndale Housing Authority ............................................................................................... 115 Budgetary Comparison Schedule – Capital Projects Funds
TDA Article 3 (Metro) 116
Proposition C Local Transit Assistance 117
Community Development Block Grant 118
Prop C25 Grant 119
Measure R 120
Metro STPL Exchange 2017 121

STATISTICAL SECTION
Financial Trends
Net Position by Component ................................................................................................ 122 Changes in Net Position ..................................................................................................... 123 Fund Balances of Governmental Funds ............................................................................. 125 Revenue Capacity
2020/21 Use Category Summary ....................................................................................... 126 Property Tax Dollar Breakdown .......................................................................................... 127 2020/21 Roll Summary ....................................................................................................... 128 Net Taxable Assessed Value History ................................................................................. 129 Assessed Value of Taxable Property .................................................................................. 130 Debt Capacity
Direct & Overlapping Property Tax Rates ........................................................................... 131 City of Lawndale
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2021
TABLE OF CONTENTS (Continued)
Page
Number
STATISTICAL SECTION (Continued)
Demographic and Economic Information
2020/21 Top Ten Property Taxpayers ................................................................................ 132 2011/12 Top Ten Property Taxpayers ................................................................................ 133 Direct & Overlapping Debt as of June 30, 2021 .................................................................. 134 Direct & Overlapping Debt as of June 30, 2012 ................................................................... 135 Demographic and Economic Statistics ............................................................................... 136 Principal Employers ............................................................................................................ 137 Sales Value History ............................................................................................................ 138 Top 25 Sales Tax Producers for Fiscal Year 2020-21 ......................................................... 139 Top 25 Sales Tax Producers for Fiscal Year 2011-12 ......................................................... 140 Taxable Sales by Category ................................................................................................ 141 Operating Information
Full-Time Equivalent City Employees by Function .............................................................. 142

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14717 BURIN AVENUE - LAWNDALE, CALIFORNIA 90260 – (310) 973-3200 – FAX (310) 644-4556 i
April 13, 2022
To the citizens of The City of Lawndale, California:

The Annual Comprehensive Financial Report (ACFR) of the City of Lawndale (the City) for the fiscal year ended June 30, 2021, is hereby submitted in accordance with the provisions of Section 25253 of the Government Code of the State of California. The report contains financial statements that have been prepared in conformity with the United States generally accepted accounting principles (GAAP) prescribed for governmental entities. Responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with the management of the City. To the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of operations of the various funds of the City. All disclosures necessary to enable the reader to gain an understanding of the City's financial activities have been included.

The report includes the City's government-wide financial statements and fund financial statements. The government-wide financial statements include two statements: the Statement of Net Position showing the total net equity of the City, including infrastructure, and the Statement of Activities, showing the cost of providing government services. Both of these statements have been prepared using the accrual basis of accounting used by most businesses, as compared to the modified accrual method used in fund financial statements (the traditional governmental financial reports). A reconciliation report is provided in the ACFR Fund Financial Statements to account for the differences between the two reporting methods.

Also, the reporting model includes an emphasis on the City's major funds, as shown in the Governmental Fund Statements. The statements, combined with other information, are further analyzed in the Management's Discussion and Analysis (MD&A). The MD&A provides "financial highlights" and a financial interpretation of trends, fluctuations, and variances in the financial data. The MD&A further discusses any events or decisions that significantly affect the financial condition of the City.

The City is required to undergo an annual single audit in accordance with Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) when it receives $750,000 or more of federal financial assistance. Information related to this single audit, including the schedule of federal financial assistance, findings and recommendations, and auditor's reports on the internal control structure and compliance with applicable laws and regulations, are included in a separate report.

The City provides a range of services, including public safety, municipal services, recreation and community services, public works, planning and community development, and general government services. In addition to general government activities, the City is an integral part of the Lawndale Cable Usage Corporation, Lawndale Housing Authority, and Lawndale Financing Authority. These activities are combined with those of the City.

City of Lawndale
Letter of Transmittal (Continued)
Page | 2
ii

GENERAL INFORMATION
The City of Lawndale, incorporated in 1959, is located in the Centinela Valley of Los Angeles County, approximately fifteen miles southwest of downtown Los Angeles and five miles east of the Pacific Ocean. Lawndale is an urbanized area of predominately single-family homes, encompassing 1.9 square miles. The City enjoys a moderate climate with a yearly average temperature of 68 degrees. The population is approximately 33,000.

The City has a council-manager form of government with an elected Mayor, four Councilmembers, and a full-time appointed City Manager. The City contracts with the County of Los Angeles for police and fire services. City Attorney and Information Technology are also contracted services.

The remaining services are provided by 59 full-time and part-time customer-oriented City staff.

ECONOMIC CONDITION AND OUTLOOK
The below chart represents the top five general fund revenue sources for the City of Lawndale.

Sales and use tax shows the most significant change due to the passage of Measure L, a local revenue measure increasing the local sales tax by ¾ cent per dollar to maintain key city services.

Measure L was effective April 1, 2019, with $2.8 million generated in the fiscal year ending June 30, 2021. Internet sales made up 52% of the City's sales tax revenue in the current year. Motor vehicle in-lieu tax and utility user taxes have had modest inclines sloping upward and downward in the respective revenue categories over the years. Property taxes and other taxes (which include business license, transient occupancy, and franchise fees) as well as charges for services display the economic down-turn impacted by stay-at-home orders related to the coronavirus pandemic and have increased by 14.8%, 28.3% and 39.7% respectively in 2021.

Revenue generated from utility user taxes has been declining since 2014. Charges for services has increased as a result of rate increases in the building permit and inspection fee area.

Overall, general fund revenue is anticipated to increase in the upcoming fiscal years due to City of Lawndale
Letter of Transmittal (Continued)
Page | 3
iii
Measure L and the traditional Bradley-Burns sales tax, however, expenditures are also increasing.

Sheriff contract services increases was the significant factor related to Measure L being submitted for voter-approval. Following is a graph of costs from fiscal year 2013-14 through the 2019-20 contract amount demonstrating the increased costs to the City. We anticipate costs to continue to increase with County labor negotiations.

The following graph demonstrates the actual year-to-year cost increase to the City.

The City participates in a defined benefit pension plan with the California Public Employee's Retirement System (CalPERS). The following table is based on data taken from the CalPERS actuary valuations, which assume a 7% rate of return. Based on the current economic environment, 7% will not be realized by plan participants, and losses could be seen in the future with the Federal rate being close to zero. The chart represents the total normal costs plus the amortization of the unfunded accrued liability.

City of Lawndale
Letter of Transmittal (Continued)
Page | 4
iv
Other Post-Employment Benefits offered by the City include CalPERS retiree medical benefits, which are also seeing extensive increases, specifically with changes due to additional employee retirements and investment losses. The below graph shows the historical costs for retiree benefits paid by the City. Continued cost increases are anticipated as more employees retire and plan changes occur.

Sound fiscal controls and conservative spending measures will continue to be employed at the City to sustain operations in the economic uncertainty ahead and ensure citizens receive desired services.
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
FY 2017-
18 FY 2018-
19 FY 2019-
20 FY 2020-
21 FY 2021-
22 FY 2022-
23 FY 2023-
24 FY 2024-
25 FY 2025-
26 FY 2026-
27 Estimated Total Employer Retirement Contributions
City of Lawndale
Letter of Transmittal (Continued)
Page | 5
v

FINANCIAL INFORMATION
Management of the City is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, theft, or misuse, and provide adequate compiled accounting data to allow for the preparation of financial statements in conformity with generally accepted accounting principles. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management.

Single Audit. As a recipient of federal, state, and county financial assistance, the City also is responsible for ensuring that an adequate internal control structure is in place to ensure compliance with applicable laws and regulations related to those programs. This internal control structure is subject to periodic evaluation by management and City staff. As a part of the City's single audit, described earlier, tests are made to determine the adequacy of the internal control structure, including that portion related to federal financial assistance programs, as well as to determine that the government has complied with applicable laws and regulations. The results of the City's most recent single audit for the fiscal year ending on June 30, 2018, provided two instances of material weaknesses in the internal control structure or significant violations of applicable laws and regulations. Material weaknesses included the areas of capital asset reconciliation and preparation of grant schedules. See the separate Single Audit report for details.

Financial and Budgetary Controls. In addition, the City maintains financial and budgetary controls. These budgetary controls' objective is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City's governing body. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is at the fund level. The City maintains an encumbrance accounting system as one technique of accomplishing budgetary control. Purchase orders that would result in an overrun of a department line item account may not be processed until either a budget transfer from another account is processed or after a budget adjustment is processed, which requires City Council approval. Multi-year Capital Improvement Plan (CIP) projects, encumbered amounts and unspent budgeted appropriations are reviewed and carried over at year-end.

Appropriation Limitation. As required by Article XIII B of the California Constitution, the City's appropriation limitation for 2020-2021 expenditures were calculated at $36.0 million.

Appropriations subject to limitation totaled $16.0 million, or $20.1 million below the City's legal appropriation limit.

OTHER INFORMATION
Independent Audit. State statute requires an annual audit by independent certified public accountants. The accounting firm of Rogers, Anderson, Malody & Scott, LLP, was selected by the City Council with the recommendation of the Director of Finance Director after a formal Request for Proposal process. Subsequently, a contract was entered into with Rogers, Anderson, Malody & Scott, LLP, to perform audit services for the City. In addition to meeting the City of Lawndale
Letter of Transmittal (Continued)
Page | 6
vi
requirements set forth in state statutes, the audit was also designed to meet the requirements of the Federal Single Audit Act of 1984 and Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). The auditor's report on the general purpose financial statements and combining, individual fund, and schedules are included in the financial section of this report. The City's independent auditors, Rogers, Anderson, Malody & Scott, LLP, have issued an unmodified opinion. The auditor's reports explicitly related to the single audit are included in the Single Audit Report.

Financial Reporting Award. The Government Finance Officers Association (GFOA) of the United States and Canada has awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its ACFR for the fiscal year ended June 30, 2020. This was the first year in over two decades that the City applied for and attained this prestigious award. In order to be awarded a Certificate of Achievement, a government entity must publish an easily readable and efficiently organized ACFR. This report must satisfy both Generally Accepted Accounting Principles and applicable legal requirements.

Acknowledgments. The preparation of this ACFR could not have been accomplished without the dedicated service of the entire staff of the Finance Department, especially the efforts of Rhodora Reginaldo, Katie Hoang and Joshua Aasness. Additionally, I would like to extend my gratitude to our City Council and Sean Moore, City Manager, for their continued support. Finally, I would like to thank our independent auditors, Rogers, Anderson, Malody & Scott, LLP, for their efforts through this audit engagement.

Res pectfully submitted,
John P Downs, CPA
Interim Director of Finance
vii

CITY ELECTED OFFICIALS
Mayor
Robert Pullen - Miles
Term Expires: November 2022
Mayor Pro Tem
Pat Kearney
Term Expires:

November 2022
Councilmember
Bernadette Suarez
Term Expires:

November 2022
Councilmember
Rhonda Hofmann
Gorman
Term Expires:

November 2024
Councilmember
Sirley Cuevas
Term Expires:

November 2024
City Clerk – Erica Harbison

CENTRAL MANAGEMENT TEAM
City Manager: Kevin M. Chun
Director of Community Development: Sean M. Moore, AICP
Director of Finance/City Treasurer: Vacant
Director of Public Works/City Engineer: Julian Lee
Assistant City Clerk:

Asst. to the City Manager/HR Director:

Director of Community Services:

Director of Municipal Services:

Matthew Ceballos
Raylette Felton
Mike Estes
Michael Reyes
viii
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Housing

COMMUNITY

SERVICES

PUBLIC SAFETY
& MUNICIPAL

SERVICES

COMMUNITY

DEVELOPMENT FINANCE PUBLIC WORKS ADMINISTRATIVE

SERVICES

CITY CLERK
DEPT.

CITY CLERK CITY MANAGER CITY ATTORNEY

CITY COUNCIL

LAWNDALE ELECTORATE

CITY OF LAWNDALE
City-Wide Organizational Chart
ix
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Lawndale
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2020
Executive Director/CEO
1 Independent Auditor’s Report
To the Honorable Mayor and Members of City Council
City of Lawndale, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Lawndale (the City), as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2021, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

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

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

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

Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.
 Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.
 Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

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

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the required supplementary information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and To the Honorable Mayor and Members of City Council
City of Lawndale, California
3 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.

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 supplementary information, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The combining schedules and budgetary comparison information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such 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 supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information included in the Annual Report
Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the financial statements and our auditor's report thereon. Our opinions on the 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 financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the 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 April 13, 2022 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 internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

San Bernardino, California
April 13, 2022

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MANAGEMENT DISCUSSION AND ANALYSIS
City of Lawndale
Statement of Net Position
June 30, 2021
See accompanying notes to financial statements.
4 This section of the City of Lawndale’s (the City) Annual Comprehensive Report (ACFR) provides a narrative overview of the City’s financial activities for the fiscal year ended June 30, 2021. We encourage readers to consider the information presented here in conjunction with the Letter of Transmittal and the City’s basic financial statements identified in the accompanying table of contents.

OVERVIEW OF THE FINANCIAL STATEMENTS
The Management’s Discussion and Analysis (MD&A) is intended to serve as an introduction to the City’s basic financial statements which are comprised on the following three components: (1) Government-wide Financial Statements, (2) Fund Financial Statements, and (3) Notes to the Basic Financial Statements.

In addition to the basic financial statements, Required Supplementary Information is included to provide additional detail to support the basic financial statements.

Government-wide Financial Statements are designed to provide readers with a broad overview of City finances in a manner similar to a private-sector business.

The statement of net position presents financial information on all of the City’s assets, liabilities, and deferred inflows/outflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of weather the financial position of the City is improving or declining.

The statement of activities provides information about the City’s net position demonstrating how it changed during the most recent fiscal year. All of the current year’s revenues and expenses are taken into account regardless of when cash is received or paid.

Both of these government-wide financial statements distinguish functions of the City that are principally supported by taxes (motor vehicle in-lieu, sales, utility users and property tax - 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, municipal services, planning and community development, recreation and community services and public works. The business-type activities of the City include community development. Governmental activities include three major governmental funds: General Fund, Restricted Urban Development, and Lawndale Housing Authority, and 21 non-major governmental funds. Business-type activities of the City include one major proprietary fund: Community Development.

The government-wide financial statements also provide information regarding the City’s component units, entities for which the City (the primary government) is considered to be financially accountable. Although the City’s three blended component units (the Lawndale Cable Usage Corporation, the Lawndale Housing Authority and the Lawndale Financing Authority) are legally separate entities, they are, in substance, part of the City’s operations. Accordingly, the financial information from these units is combined with financial information of the primary government.

City of Lawndale
Statement of Net Position
June 30, 2021
See accompanying notes to financial statements.
5 Fund Financial Statements provide information about the City’s three category of funds – governmental, proprietary, and fiduciary, rather than the City as a whole. Some funds are required to be established by State law or by bond covenant. However, City Council established many other funds to segregate money related to government functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts.

Governmental funds, which focus on the sources, uses, and balances of current financial resources, are used to account for City services. Governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year unlike government-wide financial statements.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the City’s near-term financing decisions. The governmental funds’ balance sheet and statement of revenue, expenditures, and changes in fund balances provided are accompanied by reconciliations to the government-wide financial statements in order to facilitate this comparison between governmental funds and governmental activities.

The City maintains several individual governmental funds organized according to their type (general, special revenue and capital projects). The governmental fund financial statements present the financial information for each major fund (the General Fund and Restricted Urban Development) in separate columns. Financial information for the remaining governmental funds (non-major funds) is combined into a single, aggregated presentation. Financial information for each of these nonmajor governmental funds is presented in the supplementary information section.

Budgetary comparison statements are also included in the fund financial statements. The statements present the City’s annual estimated revenue and appropriation budgets for all governmental funds. The budgetary comparison statements have been provided to demonstrate compliance with their respective budgets.

City of Lawndale
Statement of Net Position
June 30, 2021
See accompanying notes to financial statements.
6 Fiduciary funds report assets held in a trustee or agency capacity for others and therefore cannot be used to support City programs nor be reflected in the government-wide financial statements.

The City maintains two different types of fiduciary funds. The Custodial Fund (Park Recreation Social Services Committee (PRSSC) Fund) accounts for annual firework sales income earned by the PRSSC and private donations to be used at the discretion of the PRSSC for social and leisure services and events within the City of Lawndale. The Private-Purpose Trust Fund (Lawndale Successor Agency Fund), which assumed the former Lawndale Redevelopment Agency’s assets and obligations and is responsible for winding down the activities related to the dissolution. The fund accounts for revenue received to pay estimated annual installment payments on enforceable obligations approved by the Successor Agency Oversight Board and the California Department of Finance. The City is responsible for ensuring that assets reported in this fund are used for their intended purposes.

Notes to the Basic Financial Statements provide additional information other than that displayed on the face of the financial statements and are essential for fair presentation of the financial information in the government-wide and fund financial statements.

Required Supplemental Information provides changes in net pension liability and related ratios, employer schedule of pension plan contributions, changes in total OPEB liability and related ratios, budgetary comparison schedules for the General Fund and Restricted Urban Development.

Combining statements, individual fund budgetary schedules provide information for non-major governmental funds and are presented immediately following the required supplementary information.

GOVERNMENT-WIDE FINANCIAL ANALYSIS
As noted earlier, net position may serve as a useful indicator of a government’s financial position.

The following table (Table 1) focuses on the net position and changes in net position in the City’s governmental activities. It presents an analysis of the City’s net position as of June 30, 2021, compared to June 30, 2020. At the end of the current fiscal year, the City reported positive net position in all three categories; net investment in capital assets, restricted net position and unrestricted net position. Total assets and deferred outflows of resources, exceeded total liabilities and deferred inflows of resources by $79.3 million as of June 30, 2021, representing an overall increase of $4.8 million, 6.5%, from June 30, 2020.

City of Lawndale
Statement of Net Position
June 30, 2021
See accompanying notes to financial statements.
7 Government-wide Financial Statements
A summary of the government-wide Statement of Net Position is as follows:

Statement of Net Position (in thousands)
2021 2020 Dollar Change Change
Current and other assets $ 50,948 $ 45,962 $ 4,986 10.8% Capital assets 44,367 43,870 497 1.1%
Total assets 95,315 89,832 5,483 12.0%
Deferred Outflows 3,897 3,932 (35) -0.9%
Long-term debt/pension liability 8,849 8,311 538 6.5%
Other liabilities 10,432 10,424 8 0.1%
Total liabilities 19,280 18,735 545 5.7%
Deferred Inflows 621 574 47 8.1%
Net position:

Net Investment in capital assets 43,926 43,387 539 1.2% Restricted 17,281 16,315 966 5.9%
Unrestricted 18,105 14,754 3,351 22.7%
Total net position $ 79,312 $ 74,456 $ 4,856 29.9%
Governmental Activities
Analysis of Net Position
Below are the three components of net position and their respective balances as of June 30, 2021:

The largest portion of the City’s net position reflects its investment in capital assets of $43.9 million, an increase of $539 thousand, or 1.2% from the prior fiscal year. This component consists of capital assets such as land, construction in progress, building and structures, improvements, vehicles, machinery and equipment and infrastructure, net of accumulated depreciation. The amount is further reduced by any debt attributed to the acquisition, construction, or improvement of the assets.

The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s net investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources since the capital assets themselves cannot be liquidated for these liabilities. The $539 thousand increase is attributed to capital asset additions $2.6 million less current year depreciation of $2.1 million.

The restricted net position is $17.3 million, an increase of $966 thousand, or 5.9% from the prior fiscal year, and represents resources that are subject to external restrictions on how they may be used. External restrictions include those imposed by creditors, grantors, contributors, or laws and regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation. The most significant changes from the prior year were attributed to Recreation and Community Services, Public Works, Housing and Capital Projects.

City of Lawndale
Statement of Net Position
June 30, 2021
See accompanying notes to financial statements.
8 Government-wide Financial Statements (Continued)
Analysis of Net Position (Continued)
The unrestricted net position is $18.1 million, an increase of $3.4 million, or 22.7% from the prior fiscal year. This amount is available for future spending.

The following table provides information from the Statement of Activities of the City as of June 30, 2021 compared to the prior year:

Statement of Activities (in thousands)
Percentage
2021 2020 Dollar Change Change
Revenues
Program revenues:

Charges for services $ 3,475 $ 2,383 $ 1,092 45.8%
Operating contributions & grants 1,005 496 509 102.7%
Capital contributions & grants 4,464 5,304 (840) -15.8% General revenues:

Property taxes 1,673 1,527 146 9.6%
Sales taxes 6,073 5,589 484 8.7%
Motor vehicle in lieu 3,948 3,788 160 4.2%
Other taxes 3,305 3,045 260 8.5%
Gain on sale of capital assets 62 1 61 6107.4%
Other general revenues 425 730 (305) -41.8%
Total revenue 24,430 22,863 1,567 6.9%
Program expenses
General government 5,066 4,191 875 20.9%
Public safety 6,291 6,203 88 1.4%
Code enforcement and animal control 1,334 1,335 (1) -0.1% Planning & community development 1,663 1,726 (63) -3.7% Recreation & community services 577 2,360 (1,783) -75.6% Public works 4,628 5,169 (541) -10.5%
Interest on long-term debt 16 17 (1) -4.1%
Total expenses 19,575 21,001 (1,426) -6.8%
Change in net position 4,855 1,862 2,993 160.8%
Beginning net position, as restated 74,456 72,594 1,862 2.6% Ending net position $ 79,311 $ 74,456 $ 4,855 6.5%
Government Activities
Analysis of Changes in Net Position
The following are major factors attributing to the net position changes between fiscal years 2020-21 and 2019-20, as shown in the table above.

Revenues for governmental activities
Total revenues for governmental activities were $24.4 million, an increase of $1.6 million, or 6.9%, from fiscal year 2019-20. The increase consisted of net increases in program revenues of $0.8 thousand and general revenues of $0.8 million.

City of Lawndale
Statement of Net Position
June 30, 2021
See accompanying notes to financial statements.
9 The increase in program revenues was primarily attributed to:
 Charges for services increased $1.1 million, or 45.8%, attributed to community development being transferred to a governmental activity from a business-type activity and improvements in general government services due to the lifting of stay-at-home orders in response to improvements to the coronavirus pandemic.
 Operating contributions and grants increased $509 thousand, or 102.7%, primarily attributed to the increase Community Development Block Grant reimbursements received during the year related to Grevillea Avenue improvement costs and Coronavirus Relief Allocations received during the year.
 Capital contributions and grants decreased $0.8 million, or 15.8%, attributed to a one-time transfer from Successor Agency in the prior year.

General Revenues
General Revenues are $15.4 million, an increase of $0.8 million, or 5.5%, from fiscal year 2019-20.

The increase in general revenues was primarily attributed to:
 Sales taxes increased $484 thousand, or 8.7%, $81 thousand attributed to Local Bradley Burns and $403 thousand attributed to Measure L, a ¾ cent district transaction tax  Property taxes increased by $146 thousand, or 9.5%.
 Property taxes in lieu of Motor vehicle fees increase by $160 thousand, or 4.2%.  Gain on sale of capital assets increased $61 thousand, or 6,107.4%. The City sold a strip of land which was not large enough for development.

Expenses for governmental activities
Total expenses for governmental activities were $19.6 million for the current fiscal year, a decrease of $1.4 million, or 6.8%, compared to the prior fiscal year. Significant factors attributing to the decrease included recreation and community services program and public works expense decreases of $1.7 and $0.5, respectively. These decreases were offset by a $0.9 million increase in general government.
 The City contracts public safety services with the County Sheriff's department, which is subject to annual salary and benefit increases. The $88 thousand increase relates to contract increases, including liability insurance, which remained flat at 11% of contract rates per position.

City of Lawndale
Statement of Net Position
June 30, 2021
See accompanying notes to financial statements.
10  Increases in public works expenses were primarily attributed to the street improvements and traffic signal improvements, which incurred an increase in non-major governmental funding of $2.5 million offset by a reduction in Gas Tax, SB1, Ground Water, Prop C Local Transit and Prop A funds incurred a decrease in spending of $176, $18, $20, $44 and $34 thousand in each respective fund compared to the prior year. In addition to the governmental fund decreases, public work increases in the government-wide statements included a $318 increase due to the change in pension and other employee benefit liability and a reduction of $263 thousand related to capital outlay.
 The $1.7 million decrease in recreation and community services program expense was primarily attributed to the cancellation of most recreation and senior activity programs along with the City’s fixed route bus program due to the COVID pandemic. Expenses decreased $1.1 million in the general fund due to staff, contract services and community event reductions as well as reductions in Prop A funds of $488 thousand due to the cancellation of the City’s fixed route bus program. Additional reductions were result of the change in pension, and other employee benefit liability and costs incurred related to the staff reductions as compared to the prior year.

The following chart displays expenses and the associated program revenues by function for fiscal year ended June 30, 2021, governmental activities (in thousands):

City of Lawndale
Statement of Net Position
June 30, 2021
See accompanying notes to financial statements.
11 Revenue by Source – Governmental Activities
Other general
revenues
2%
Charges for services
14%
Operating
contributions &
grants
4%
Capital
contributions &
grants
18%
Property taxes
7%
Sales taxes
25%
Motor vehicle
in lieu
16%
Other taxes
14%
Expense by Function – Governmental Activities
Code enforcement and
animal control
0 Public safety,
32%
Public works,
24%
General
government,
26%
Recreation &
community
services, 3%
Housing, 8%
City of Lawndale
Statement of Net Position
June 30, 2021
See accompanying notes to financial statements.
12 FINANCIAL ANALYSIS OF FUND STATEMENTS
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with financerelated legal requirements.

Governmental Funds
The focus of the City's governmental funds is to provide information on the sources, uses, and balances of spendable resources. Such information is useful in assessing the City's short-term financial requirements. In particular, the total fund balance less the non spendable amount may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. Types of governmental funds reported by the City include the general fund, special revenue funds and capital project funds. As of June 30, 2021, the City's governmental funds reported combined fund balances of $39.3 million, an increase of $5.7 million, or 16.9% in comparison with the prior year. The components of the total fund balance are as follows:
 Nonspendable fund balance - $5.3 million, amounts that cannot be spent because they are either not in spendable form or are legally or contractually required to be maintained intact.  Restricted fund balance - $17.3 million, amounts that are constrained to be used for a specific purpose by external parties such as creditors, grantors, laws, or regulations.  Unassigned fund balance - $16.7 million, amounts that are not reported in any other category and are available for any purpose within the General Fund.

Total governmental fund revenue increased by $2.9 million, or 13.4%, from the prior fiscal year, with $24.6 million being recognized for the fiscal year ended June 30, 2021. Expenditures decreased by $0.4 million, or 2.1%, from the prior fiscal year, with $18.9 million being expended for governmental activities during the year. Overall, governmental fund balance increased $5.7 million, or 7.4%, compared to an increase of $1.6 million, or 5.3% in fiscal year 2020-21 compared to 2019-20.

Major Governmental Funds
General Fund
The General Fund is the primary operating fund of the City. At the end of the current fiscal year, the General Fund's total fund balance was $21.9 million, compared to $17.9 million as stated in fiscal year 2019-20, an increase of $4 million, or 22.4%. As a measure of the General Fund's liquidity, it is useful to compare both total fund balance and spendable fund balance to total fund expenditures.

The nonspendable portion of the fund balance was $5.3 million, and the spendable portion was $16.6 million, which was 37% and 116%, respectively, of the total General Fund expenditures of $14.3 million, as compared to 42% and 73%, respectively, of the prior year General Fund expenditures of $14.9 million.

City of Lawndale
Statement of Net Position
June 30, 2021
See accompanying notes to financial statements.
13 Total General Fund revenue increased $1.7 million, 10.3%, from $16.8 to $18.4 million. Significant factors attributed to the net increase included taxes, licenses and permits, and charges for services with $0.8, $0.2, and $1.6 million increase from the prior year. Decreases from intergovernmental, use of money and property and miscellaneous were $0.8, $0.06 and $0.1 million respectively.  Property taxes, including Property Tax Transfer Documentation increased by $146 thousand, Sales and Use Taxes increased by $484 thousand comprised of $82 thousand from the Bradley Burns local sales taxes and $402 thousand increase in tax revenue was attributed to Measure L ¾ cent district transaction tax. Franchise Fees, Transient Occupancy Taxes and Utility Users Taxes increased by $55, $145 and $58 thousand respectively from the prior year.
 Business Licenses and Business Licenses late fees increased $119 and $173 thousand respectively more than the previous year as a result of improvements in the handling of the COVID pandemic.
 The most significant factor attributing to the $1.6 million increase in charges for services is due to the reintegration of Planning and Community Development into the General Fund.

Planning and permit fees contributed $1.5 million, an increase of $731 thousand from the prior year, due to the lifting of stay-at-home orders.
-
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
General Fund Revenues
FY21 FY20
City of Lawndale
Statement of Net Position
June 30, 2021
See accompanying notes to financial statements.
14 Total General Fund expenditures decreased $0.6 million, or 3.8%, from $14.9 to $14.3 million.

Significant factors attributed to the net decrease included recreation and community services and capital outlay with $1.0 million and $953 thousand decrease from the prior year. These increases were partially offset by increases in general government, public safety and planning & community development expenditures with $519, $117, and $774 thousand increase from the prior year.  The $1.0 million decrease in recreation and community services was due to the continued pandemic.
 The $953 thousand decrease in capital outlay is primarily attributed to the completion of the Inglewood Avenue Corridor Widening Phase III in the prior year.  The general government $519 thousand increase were primarily due to increases in pension cost of $134 thousand, $118 thousand in legal cost, $50 thousand in election cost and $128 thousand in increased contract services.
 The public safety $117 thousand increase includes contract rate increases for County Sheriff personnel and liability insurance of $105 and $12 thousand, respectively.  The planning and community development function transferred to the general fund from a separate business-type activity resulting in the $774 thousand general fund decrease compared to the prior year.
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
General Fund Expenditures
FY21 FY20
The other Major Governmental Fund includes Restricted Urban Development Fund. Revenue for the fund is nominal, with current year revenue increasing $8 thousand from the previous year.

Expenditures in the Restricted Urban Development fund decreased $45 thousand, 49%, from $93 to $47 thousand in fiscal year 2020-21. One time increases in compliance testing related to the City of Lawndale
Statement of Net Position
June 30, 2021
See accompanying notes to financial statements.
15 National Pollutant Discharge Elimination System (NPDES) permit program and an underground storage tank site assessment study, in the prior year that were not utilized in the current year resulted in lower expenditures for the current year.

Nonmajor Governmental Funds
The $1.8 million, or 19.2%, increase in non-major governmental funds fund balance is primarily due to a reclassification of the Lawndale Housing Authority fund from a major fund to a non-major fund $2.0 million or 25%, increase (restatement) and $1.5 million or 24% increase in revenues over expenditures and $251 thousand in net transfers-in. Compared to prior year non-major governmental fund operations, revenue and expenditures increased $1.2 and $0.37 million, respectively.
 Revenue increased $1.2 million, or 24.4%, to $6.1 million in the non-major governmental funds.

The most significant increase in revenue was in Groundwater Sustainability, Measure W Safe Clean Water, Community Development Block Grant (CDBG), Measure R and the Coronavirus Relief Fund, which increased $81, $230, $159, $356 and $405 thousand respectively.

Groundwater Sustainability was separated out of the General Fund, Measure W revenues will be utilized for the Alondra Park Regional Joint Project, CDBG funding was utilized for $328 thousand of street repair improvements and $63 thousand for Senior Activities, Measure R funding was utilized for street improvements and traffic signals, $335 and $440 thousand respectively. The Coronavirus Relief Fund was utilized for pandemic related activities.  Expenditures were $370 thousand, or 8.9%, higher in the current fiscal year. The most significant factor attributing to the increase were street and highway improvement costs funded with Measure M Local Return, CDBG, Measure R and Metro STPL Exchange 2017 funding, attributing to $354, $155, $672, and $518 thousand of the respective increase. In addition, $156 and $112 thousand of Lawndale Housing Authority and Coronavirus Relief funding, respectively, was expended in the current year.

GENERAL FUND BUDGET
The original budget compared to the final General Fund budget, as presented in the Budgetary Comparison Schedule included in the Required Supplementary Information Section, increased $1.5 million, 9.1%. The net increase was the result of $1.7 million increase in budgeted revenue offset by a $0.2 million increase in appropriation authority during the year.

General Fund revenue was originally budgeted at $15.6 million and $17.9 million of budgetary fund balance was available, resulting in $33.5 million available for appropriations during the year. The budget was monitored throughout the year, and adjustments were made, resulting in the final revenue budget of $17.3 million, an increase of $1.7 million, or 11.1%. Significant revenue budget increases were attributed to the taxes, license and permits, intergovernmental and charges for City of Lawndale
Statement of Net Position
June 30, 2021
See accompanying notes to financial statements.
16 services comprising of $825, $100, $72 and $615 thousand of the respective revenue budget increase.
 Taxes and special assessment revenue budget increased $825 thousand, which was attributed to Property Taxes of $277 thousand, Transient Occupancy Tax, $528 thousand and Utility Users Taxes, $150 thousand, being higher than anticipated.  License and permits revenue budget increased $100 thousand due to the increase in encroachment permits.
 Intergovernmental revenue budget increased by $72 thousand due to the award of a state grant for Local Road Safety Plan Study.
 Charges for services revenue budget increased by $615 thousand due to higher than anticipated building and planning fees.

The General Fund appropriation budget increased $215 thousand, or 1.2%, from the original budget of $17.1 million to the final budget of $17.3 million. The most significant increase was $295 thousand increase in general government, due to increase cost for legal services, elections expenses and contract services of $117, $51 and $127 thousand respectively and increased cost in public works of $105 thousand. These increases were offset by reductions in public safety appropriations of $194 thousand.

CAPITAL ASSETS
Capital assets, net of depreciation, increased $496 thousand, from $43.8 million on July 1, 2020, to $44.3 million on June 30, 2021. The increase is attributed to a depreciation expense of $2.0 million offset by $2.6 million of additions. The additions were in construction in progress (ongoing Inglewood Avenue Corridor widening project, traffic signal projects at Marine/Osage and Freeman/154 to Marine, and Grevillea Avenue resurfacing project), sidewalk reconstruction and city-wide street repairs. For more information, see Capital Assets Note 7 in the Notes to Financial Statements.

LONG-TERM LIABILITIES
Total long-term liabilities city-wide equal $16.8 million, an increase of $1.0 million from fiscal year 2019-20 due to increases in pension and OPEB liabilities. Additional information is presented in Note 15.

Requests for Information
This financial report is designed to provide a general overview of the City's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the City of Lawndale, Finance Department, 14717 Burin Avenue, Lawndale, California 90260; Phone (310) 973-3241; Fax: (310) 970-2183; website:
www.lawndalecity.org.

City of Lawndale
Statement of Net Position
June 30, 2021
See accompanying notes to financial statements.
17 Governmental
Activities
Assets
Cash and investments $ 27,790,736
Receivables:

Accounts 2,207,297
Grants 417,894
Accrued interest 15,026
Notes and loans 308,553
Agreements with Successor Agency 19,572,845
Prepaid costs 962
Land held for development 634,983
Capital assets not being depreciated 10,671,067
Capital assets, net of depreciation 33,695,954
Total Assets 95,315,317
Deferred Outflows of Resources
Pension related 1,981,032
OPEB related 1,916,374
Total Deferred Outflows of Resources 3,897,406
Liabilities
Accounts payable 1,239,806
Accrued liabilities 190,348
Accrued interest 6,119
Deposits payable 1,053,681
Noncurrent liabilities:

Due within one year
Long-term debt 42,831
Compensated absences 270,760
Due in more than one year
Long-term debt 398,546
Compensated absences 291,800
Total pension liability 8,407,132
Total OPEB liability 7,379,154
Total Liabilities 19,280,177
Deferred Inflows of Resources
Pension related 620,726
Total Deferred Inflows of Resources 620,726
Net Position
Net investment in capital assets 43,925,644
Restricted for:

Community development projects 169,247
Public safety 205,091
Parks and recreation 2,006,031
Public works 6,491,436
Capital projects 6,079,483
Air quality 198,449
Code enforcement and animal control 135,102
Housing 1,995,970
Unrestricted 18,105,367
Total Net Position $ 79,311,820
City of Lawndale
Statement of Activities
For the Fiscal Year Ended June 30, 2021
See accompanying notes to financial statements.
18 Net (Expenses)
Revenues and
Changes in Net
Position
Program Revenues
Primary
Government
Operating Capital
Charges for Contributions Contributions Governmental
Functions/Programs Expenses Services and Grants and Grants Activities Primary Government
Governmental Activities:

General government $ 5,066,050 $ 1,971,238 $ - $ (3,094,812) - $ Public safety 6,290,957 561,701 - (5,729,256) - Code enforcement and animal control 1,333,971 - - (1,333,971) - Housing 1,662,910 1,503,744 - - (159,166) Recreation and community services 577,013 - 8,384 - (568,629) Public works 4,627,877 435,335 - 4,463,748 271,206
Interest on long-term debt 16,309 - - - (16,309)
Total Governmental Activities $ 19,575,087 $ 3,474,982 $ 1,005,420 $ 4,463,748 (10,630,937) General Revenues
Taxes:

Property taxes, levied for general purpose 1,673,195
Property taxes in lieu of vehicle license fees 3,947,793 Transient occupancy taxes 712,164
Sales taxes 6,072,989
Franchise taxes 856,705
Utility users tax 1,736,358
Use of money and property 337,610
Miscellaneous 87,429
Gain on sale of capital asset 62,074
Total General Revenues 15,486,317
Change in Net Position 4,855,380
Net Position, Beginning of Year, as Restated 74,456,440 Net Position, End of Year $ 79,311,820
City of Lawndale
Balance Sheet
Governmental Funds
June 30, 2021
See accompanying notes to financial statements.
19 Special Revenue
Fund
Restricted Nonmajor Total
Urban Governmental Governmental
General Development Funds Funds
Assets
Cash and investments $ 16,780,053 $ 807,628 $ 10,203,055 $ 27,790,736 Receivables:

Accounts 1,942,650 - 264,647 2,207,297 Grants - - 417,894 417,894 Accrued interest 8,930 441 5,655 15,026
Notes and loans - - 308,553 308,553
Agreements with Successor Agency 10,155,394 9,417,451 19,572,845 - Prepaid costs 962 - - 962 Due from other funds 76,034 - - 76,034
Land held for development 147,900 - 487,083 634,983
Total Assets $ 29,111,923 $ 10,225,520 $ 11,686,887 $ 51,024,330 Liabilities, Deferred Inflows of Resources,
and Fund Balances
Liabilities
Accounts payable $ 944,908 $ 2,973 $ 291,925 $ 1,239,806 Accrued liabilities 159,080 - 31,268 190,348
Deposits payable 1,053,681 - - 1,053,681
Due to other funds - - 76,034 76,034
Total Liabilities 2,157,669 2,973 399,227 2,559,869
Deferred Inflows of Resources
Unavailable revenues 4,959,334 4,143,064 19,746 9,122,144 Total Deferred Inflows of Resources 4,959,334 4,143,064 19,746 9,122,144 Fund Balances
Nonspendable:

Prepaid costs 962 - - 962
Land held for development 147,900 - - 147,900
Agreements with Successor Agency 5,196,060 - - 5,196,060 Restricted for:

Community development projects - - 169,247 169,247
Public safety - - 205,091 205,091
Recreation and community services - - 2,006,031 2,006,031 Public works - - 6,491,436 6,491,436
Capital projects - 6,079,483 - 6,079,483
Air quality - - 198,449 198,449
Municipal services - - 135,102 135,102
Housing - - 1,995,970 1,995,970
Unassigned 16,649,998 - 66,588 16,716,586
Total Fund Balances 21,994,920 6,079,483 11,267,914 39,342,317 Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 29,111,923 $ 10,225,520 $ 11,686,887 $ 51,024,330 City of Lawndale
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position June 30, 2021
See accompanying notes to financial statements.
20 Total Fund Balances - Governmental Funds $ 39,342,317 Amounts reported for governmental activities in the statement of position are different because:

Capital assets used in governmental activities are not current financial resources and therefore are not reported in the governmental funds balance sheet. 44,367,021 Long-term liabilities are not due and payable in the current period and therefore are not included in the governmental funds:

Facility and site lease note $ (441,377)
Net pension liability (8,407,132)
Total OPEB liability (7,379,154)
Compensated absences (562,560) (16,790,223)
Deferred outflows and inlows of resources related to pensions have not been reported in the governmental funds:

Pension related deferred outflows of resources 1,981,032 Pension related deferred inflows of resources (620,726) 1,360,306 Accrued interest payable for the current portion of interest due on notes that has not been reported in the governmental funds. (6,119)
Deferred outflows and inflows of resources related to OPEB have not been reported in the governmental funds:

OPEB related deferred outflows of resources 1,916,374
Revenues reported as unavailable in the governmental funds are recognized in the statement of activities. These are included in the intergovernmental revenues in the governmental fund activity. 9,122,144
Net Position of Governmental Activities $ 79,311,820
City of Lawndale
Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds
For the Fiscal Year Ended June 30, 2021
See accompanying notes to financial statements.
21 Special Revenue
Fund
Restricted Nonmajor Total
Urban Governmental Governmental
General Development Funds Funds
Revenues
Taxes $ 10,830,784 $ - $ - $ 10,830,784
Licenses and permits 907,757 - - 907,757
Intergovernmental 3,947,793 5,935,805 - 9,883,598
Charges for services 1,733,434 - 40,422 1,773,856
Use of money and property 218,209 8,450 110,181 336,840 Fines and forfeitures 783,944 - - 783,944
Miscellaneous 53,224 - 34,131 87,355
Total Revenues 18,475,145 8,450 6,120,539 24,604,134
Expenditures
Current:

General government 4,288,560 - 226,089 4,514,649
Public safety 6,141,287 - 149,670 6,290,957
Code enforcement and animal control 1,087,863 - 6,133 1,093,996 Housing 774,499 - 155,633 930,132
Recreation and community services 328,224 - 123,350 451,574 Public works 1,680,143 47,461 2,862,065 4,589,669
Capital outlay 380 1,030,881 - 1,031,261
Debt service:

Principal retirement 41,442 - - 41,442
Interest and fiscal charges 16,929 - - 16,929
Total Expenditures 14,359,327 47,461 4,553,821 18,960,609 Excess (Deficiency) of Revenues
Over (Under) Expenditures 4,115,818 (39,011) 1,566,718 5,643,525 Other Financing Sources (Uses)
Transfers in 57,130 - 251,581 308,711
Transfers out (204,483) (104,228) - (308,711)
Proceeds from sale of capital assets 62,074 - - 62,074
Total Other Financing Sources (Uses) (85,279) (104,228) 251,581 62,074 Net Change in Fund Balances 4,030,539 (143,239) 1,818,299 5,705,599 Fund Balances
Beginning of year, as Restated 17,964,381 6,222,722 9,449,615 33,636,718 Fund Balances, End of Year $ 21,994,920 $ 6,079,483 $ 11,267,914 $ 39,342,317 City of Lawndale
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Fiscal Year Ended June 30, 2021
See accompanying notes to financial statements.
22 Net Change in Fund Balances - Total Governmental Funds $ 5,705,599 Amounts reported for governmental activities in the statement of activities are different because:

Governmental funds report capital outlay as expenditures. However, in the government-wide Statement of Activities, the cost of those assets is allocated over their estimated useful lives as depreciation expenses. This is the amount by which capital outlays exceeded depreciation in the current period.

Capital asset expenditures capitalized $ 2,576,914
Depreciation (2,080,029) 496,885
Governmental funds report revenues and expenditures primarily pertaining to long-term liabilities, which are not reported in the statement of activities. At the government-wide level, these activities are reported in the statement of net position. This is the net expenditure reported in the governmental funds, which are not reported in the statement of activities.

Pension related net adjustments (443,207)
OPEB related net adjustments (631,670) (1,074,877)
Long-term debt activities are not considered revenues or expenses in the government-wide Statement of Activities, but are considered revenues, expenditures, and sources and uses in governmental funds. These include:

Principal payments on long-term debt 41,442
Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds.

Change in compensated absences (78,548)
Change in accrued interest 620 (77,928)
Revenues reported as unavailable revenue in the governmental funds and recognized in the statement of activities. These are included in the intergovernmental revenues in the governmental fund activity. (235,741)
Change in Net Position of Governmental Activities $ 4,855,380 City of Lawndale
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2021
See accompanying notes to financial statements.
23 Private-Purpose
Custodial Fund Trust Funds
Lawndale
PRSSC Successor
Fund Agency
Assets
Cash and investments $ 98,536 $ 1,800,853
Receivables:

Accrued interest 52 - Restricted assets:

Cash and investments held with fiscal agents - 2,506,777 Total Assets 98,588 4,307,630
Liabilities
Accounts payable - 1,789
Accrued liabilities - 6,393
Accrued interest - 424,270
Long-term liabilities:

Due in one year
Tax allocation bonds - 330,766
Direct borrowings - 1,473,608
Due in more than one year
Tax allocation bonds - 17,376,475
Direct borrowings - 19,128,038
Total Liabilities - 38,741,339
Net Position (Deficit)
Held in trust for other purposes 98,588 (34,433,709)
Total Net Position (Deficit) $ 98,588 $ (34,433,709)
City of Lawndale
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Fiscal Year Ended June 30, 2021
See accompanying notes to financial statements.
24 Private-Purpose
Custodial Fund Trust Funds
Lawndale
PRSSC Successor
Fund Agency
Additions
Taxes $ - $ 3,072,323
Interest income 1,029 393
Miscellaneous revenues - 15,896
Total Additions 1,029 3,088,612
Deductions
Administrative expenses - 256,813
Contractual services - 231,995
Interest and fiscal charges - 1,268,326
Donations 2,542 -
Total Deductions 2,542 1,757,134
Changes in Net Position (1,513) 1,331,478
Net Position (Deficit), Beginning of Year 100,101 (35,765,187) Net Position (Deficit), End of Year $ 98,588 $ (34,433,709) City of Lawndale
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2021
25 I. SIGNIFICANT ACCOUNTING POLICIES
Note 1: Organization and Summary of Significant Accounting Policies The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) applicable to governmental entities. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. A summary of the City of Lawndale's significant accounting policies applied in the preparation of these financial statements follows. a. Description of the Reporting Entity
The City of Lawndale, California (the City), is a municipal corporation, incorporated on December 28, 1959. The City operates under a Council-Manager form of government and the City Council is comprised of five members, with the Mayor elected by the council itself. Services provided by the City include public safety, public works (streets and facilities maintenance, and engineering), municipal services (animal control, parking and code enforcement, and emergency preparedness), planning and community development, recreation and community services, local access cable television, and other general operations and administrative services.

As required by accounting principles generally accepted in the United States of America, the accompanying financial statements present the activities of the City, as the primary government, and its component units.

The inclusion of an organization within the scope of the reporting entity of the City of Lawndale is based on the provisions of GASB Statement No. 14 (as amended by GASB Statements No. 39, 61 and 80). The blended component units described below, although legally separate entities, are in substance part of the government operation and so data from these component units has been combined herein. The following criteria were used in the determination of the blended component units:

1. The members of the City Council also act as the governing body of the Lawndale Cable Usage Corporation, the Lawndale Housing Authority, and the Lawndale Public Financing Authority.

2. The Cable Usage Corporation, the Housing Authority, and the Public Financing Authority are managed by employees of the City. A portion of the City's personnel costs is allocated to these component units each year.

3. The City, the Cable Usage Corporation, the Housing Authority, and the Public Financing Authority are financially interdependent. They provide a financial benefit/burden to the City.

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2021
26 Note 1: Summary of Significant Accounting Policies (Continued) a. Description of the Reporting Entity (Continued)
Blended Component Units
The Lawndale Cable Usage Corporation (the Corporation) was established on September 30, 1986. The Corporation was created for the purpose of supporting community television for the citizens of Lawndale. The City Council acts as the Corporation's governing board and exerts significant influence over its operations.

The activities of the Corporation have been reported as a special revenue fund of the City and are included in the governmental activities of the accompanying financial statements. Separate financial statements for the Corporation are not prepared.

The Lawndale Housing Authority (the Authority) was established on October 15, 1984. The Authority was created for the purpose of providing housing assistance for low income families, elderly and disabled persons. The City Council acts as the Authority's governing board and exerts significant influence over its operations. The activities of the Housing Authority are related to Section 8 Rental Assistance Program and as of March 2011, the Housing Authority has also assisted in providing Low/Mod Housing to eligible residents. The activities of the Authority have been reported as a special revenue fund of the City and are included in the governmental activities of the accompanying financial statements. Separate financial statements for the Corporation are not prepared.

The Lawndale Financing Authority (the Financing Authority) was established on August 3, 2009. The Financing Authority is a body that serves to expedite transactions between multiple entities under the City's umbrella and therefore does not specifically have its own fund or assets. The City Council acts as the Financing Authority's governing board and exerts significant influence over its operations.

Separate financial statements for the Corporation are not prepared.

Private Purpose Trust Fund
The Successor Agency of the Former Redevelopment Agency (the Successor Agency) was created January 17, 2012, as outlined in Assembly Bill 1X 26 (the Bill) which provides the requirements for the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the City which had previously reported the activities of the former redevelopment agency within the reporting entity of the City as a blended component unit. The Successor Agency is a separate legal entity from the City, but City Council serves in separate sessions as their governing body. The responsibilities of the City as Successor Agency of the Former Redevelopment Agency are limited to acting in a fiduciary capacity, until all enforceable obligations of the Successor Agency have been paid. Because of the nature and significance of the relationship between the City and the Successor Agency, it would be misleading to exclude the Successor Agency from the City's financial statements. The financial activities of the Successor Agency are reported in the City's fiduciary fund statements as a private-purpose trust fund. Separate financial statements for the Successor Agency are not prepared.

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2021
27 Note 1: Summary of Significant Accounting Policies (Continued) b. Measurement Focus, Basis of Accounting, and Basis of Presentation The basic financial statements of the City are composed of the following:
 Government-wide financial statements
 Fund financial statements
 Notes to the financial statements
Government-wide Financial Statements
Government-wide financial statements, which include the Statement of Net Position and Statement of Activities, report information about the primary government and its component units, excluding its fiduciary activities. The statements include separate columns for the governmental activities and business-type activities, as well as discretely presented component units. Eliminations have been made to minimize the double-counting of internal activities. General government expenses have not been allocated as indirect expenses to the various functions of the City.

Government-wide financial statements are presented using the economic resources measurement focus and the accrual basis of accounting. Under the economic resources measurement focus, all (both current and long-term) economic resources and obligations of the City are reported in the government-wide financial statements.

Basis of accounting refers to when revenues and expenses are recognized in the accounts and reported in the financial statements. Under the accrual basis of accounting, revenues, expenses, gains, losses, assets, deferred outflows or resources, liabilities, and deferred inflows of resources resulting from exchange and exchange-like transactions are recognized when the exchange takes place.

The Statement of Net Position reports the difference between the combined assets and deferred outflows of resources, and the combined liabilities and deferred inflows of resources, as net position.

The Statement of Activities presents a comparison between direct expenses and program revenues for each function of the City's governmental activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Program revenues include charges for services, special assessments, and payments made by parties outside of the reporting government's citizenry, if that money is restricted to a particular program. Program revenues are reported net of direct expenses in the Statement of Activities to present the net cost of each program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2021
28 Note 1: Summary of Significant Accounting Policies (Continued) b. Measurement Focus, Basis of Accounting, and Basis of Presentation (Continued)
Amounts paid to acquire capital assets are capitalized as assets in the governmentwide financial statements, rather than reported as an expenditure. Proceeds of longterm debt are recorded as a liability in the government-wide financial statements, rather than as another financing source. Amounts paid to reduce long-term indebtedness of the reporting government are reported as a reduction of the related liability, rather than as an expenditure.

Fund Financial Statements
The underlying accounting system of the City is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity.

The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, deferred outflows of resources, liabilities, deferred inflows of resources, fund balances, revenues and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.

Fund financial statements for the primary government's governmental and fiduciary funds are presented after the government-wide financial statements. These statements display information about major governmental funds individually and nonmajor governmental funds in the aggregate. Fiduciary funds of the City primarily represent assets held by the City in a custodial capacity for other individuals or organizations.

Governmental Funds
In the fund financial statements, governmental funds are presented using the modified-accrual basis of accounting. Their revenues are recognized when they become measurable and available as net current assets. Measurable means that the amounts can be estimated, or otherwise determined. Available means that the amounts were collected during the reporting period or soon enough thereafter to be available to finance the expenditures accrued for the reporting period. The City uses an availability period of 60 days.

Sales taxes, property taxes, utility user taxes, motor vehicle in-lieu, licenses and permits, fines and forfeitures, grants and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period to the extent normally collected within the availability period. Other revenue items are considered to be measurable and available when cash is received by the government.

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2021
29 Note 1: Summary of Significant Accounting Policies (Continued) b. Measurement Focus, Basis of Accounting, and Basis of Presentation (Continued)
Governmental Funds (continued)
Revenue recognition is subject to the measurability and availability criteria for the governmental funds in the fund financial statements. Exchange transactions are recognized as revenues in the period in which they are earned (i.e., the related goods or services are provided). Locally imposed derived tax revenues are recognized as revenues in the period in which the underlying exchange transaction upon which they are based takes place. Imposed non-exchange transactions are recognized as revenues in the period for which they were imposed. If the period of use is not specified, they are recognized as revenues when an enforceable legal claim to the revenues arises or when they are received, whichever occurs first.

Government-mandated and voluntary non-exchange transactions are recognized as revenues when all applicable eligibility requirements have been met.

In the fund financial statements, governmental funds are presented using the current financial resources measurement focus. This means that only current assets and current liabilities are generally included on their balance sheets. The reported fund balance (net current assets) is considered to be a measure of "available spendable resources." Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of "available spendable resources" during a period.

Non-current portions of long-term receivables due to governmental funds are reported on their balance sheets in spite of their spending measurement focus.

Special reporting treatments are used to indicate, however, that they should not be considered "available spendable resources," since they do not represent net current assets. Recognition of governmental fund type revenue represented by non-current receivables is deferred until they become current receivables. Non-current portions of other long-term receivables are reported as non-spendable fund balance in the General Fund, and restricted, committed, or assigned fund balance in all other governmental funds, based on the intended use of the proceeds from liquidation of these long-term receivables.

Because of their spending measurement focus, expenditure recognition for governmental fund types excludes amounts represented by non-current liabilities.

Since they do not affect net current assessments, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities.

Amounts expended to acquire capital assets are recorded as expenditures in the year that resources were expended, rather than as fund assets, the proceeds of long-term debt are recorded as other financing sources rather than as a fund liability.

Amounts paid to reduce long-term indebtedness are reported as fund expenditures.

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2021
30 Note 1: Summary of Significant Accounting Policies (Continued) b. Measurement Focus, Basis of Accounting, and Basis of Presentation (Continued)
Fiduciary Funds
In the fund financial statements, fiduciary funds are presented using the accrual basis of accounting. Revenues are recognized when they are earned, and expenses are recognized when the related goods or services are delivered. In the fund financial statements, fiduciary funds are presented using the economic resources measurement focus. This means that all assets and all liabilities (whether current or non-current) associated with their activity are included on their balance sheets.

Fiduciary fund type operating statements present increases (revenues) and decreases (expenses) in total net position.

Private-purpose trust funds account for the assets and liabilities of other agencies and report additions such as taxes and deductions such as administrative and contract services.

Custodial funds account for assets held by the City in a custodial capacity. c. Fund Classification
Governmental funds with assets and deferred outflows, liabilities and deferred inflows, revenues, or expenditures equal to at least 10% of their fund-type total, and at least 5% of the combined total of governmental funds and enterprise funds, as applicable, are required to be reported as a major fund. A governmental fund may also be presented as a major fund in the basic financial statements, even if it does not meet the size criteria just described, if the City's officials believe that the fund is particularly important to the financial statement users (because of public interest, reporting consistency, or otherwise). The General Fund is always reported as a major fund.

Governmental Funds
The City reports the following major governmental funds in the accompanying financial statements:

The General Fund is the general operating fund of the City. It is used to account for all financial resources of the City, except those required to be accounted for in another fund.

The Restricted Urban Development Fund is used to account for funds derived from the Urban Development Action Grant.

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2021
31 Note 1: Summary of Significant Accounting Policies (Continued) c. Fund Classification (Continued)
Governmental Funds (Continued)
Additionally, the City reports the following governmental fund types in the accompanying financial statements:

Special Revenue Funds account for taxes and other revenues, which are set aside for a specific purpose in accordance with law or administrative regulation.

Capital Projects Funds account for financial resources used for the acquisition or construction of major capital facilities.

Fiduciary Funds
The City reports the following fiduciary funds which are excluded from the government-wide financial statements:

Private Purpose Trust Funds account for resources assumed from the former Lawndale Redevelopment Agency’s assets and obligations and is responsible for winding down the activities related to the dissolution. The fund accounts for revenue received to pay estimated annual installment payments on enforceable obligations approved by the Successor Agency Oversight Board and the California Department of Finance. The City is responsible for ensuring that assets reported in this fund are used for their intended purposes.

Custodial Funds account for assets held by the City in a custodial capacity.

These funds include the Custodial Fund (Park Recreation Social Services Committee (PRSSC) Fund) accounts for annual firework sales income earned by the PRSSC and private donations to be used at the discretion of the PRSSC for social and leisure services and events within the City of Lawndale. d. Cash and Investments
The City pools cash and investments of all funds for the benefit of obtaining the highest yield with the greatest safety and least risk, with the exception of restricted funds required to be held separately. Each fund's share in this pool is displayed in the accompanying financial statements as cash and investments. Investment income, earned by the pooled investments, is allocated to the various funds based on each fund's average monthly cash and investment balance.

Cash and Cash Equivalents
Cash and cash equivalents are considered to be cash on hand, deposits with financial institutions, and short-term investments with original maturities of three months or less from the date of acquisition. Cash and cash equivalents are included in the amounts reported as cash and investments.

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2021
32 Note 1: Summary of Significant Accounting Policies (Continued) d. Cash and Investments (Continued)
Investments
Investments are reported at fair value, the value at which a financial instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. Changes in fair value that occur during a fiscal year are recognized as investment income reported for the fiscal year. Investment income includes, interest earnings, changes in fair value, and any gains or losses realized upon the liquidation, maturity or sale of investments.

City investments are recorded at fair value, which is primarily determined on the basis of quoted market prices at the end of the year. The City invests in certificates of deposit in various financial institutions through a custodial agent and participates in an investment pool managed by the State of California titled Local Agency Investment Fund (LAIF). The custodial agent makes decisions on behalf of the City into which financial institutions to invest and LAIF invests the City's portion of the pool funds in structured notes and asset-backed securities. LAIF's investments are subject to credit risk with the full faith and credit of the State of California collateralizing these investments. In addition, these structured notes and assetbacked securities are subject to market risk as to change in interest rates. Earnings from these investments along with LAIF are allocated to all funds on a quarterly basis.
e. Prepaid Costs
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid costs in both the government-wide and fund financial statements. The cost of prepaid items is recorded as expenditures/expenses when consumed rather than when purchased.
f. Land Held for Development
The former Lawndale Redevelopment Agency had purchased properties for the purpose of making them available for sale to developers who have the ability to complete various projects consistent with the mission and activities of the City. Land held for development is valued at the lower of cost or estimated net realizable value determined upon the execution of a disposition and development agreement. If resale of land is not anticipated in the near future, a corresponding portion of the fund balance, which is not available for current expenditure, is reported as nonspendable in the General Fund, and restricted, committed, or assigned in all other governmental funds, based on the intended use of the proceeds from disposition of the land held for development.

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2021
33 Note 1: Summary of Significant Accounting Policies (Continued) g. Capital Assets and Depreciation
Capital assets, which include buildings, machinery and equipment, and infrastructure are reported in the applicable governmental activities column in the GovernmentWide Financial Statements. Capital assets are defined by the government as assets with an initial, individual cost that exceeds $5,000 to $10,000, depending on the class of asset, and an estimated useful life in excess of one year. Such capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Capital assets received in a service concession arrangement are valued at acquisition cost. Donated capital assets are valued at acquisition value on the date donated. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized.

Capital assets are depreciated over their estimated useful lives using the straight-line method. The purpose of depreciation is to spread the cost of capital assets over the useful life of these assets. The amount charged to depreciation expense each year represents that year's pro rata share of the cost of capital assets. Depreciation of all exhaustible capital assets is charged as an expense against operations.

The estimated useful lives and capitalization thresholds are as follows:

Capital Asset Type Useful Lives Capitalization Threshold Buildings and Structures 30 years $ 10,000
Improvements Other than Buildings 20 years 10,000
Vehicles, Machine and Equipment 5-30 years 5,000
Infrastructure 30 years 10,000
Infrastructure assets include roads, bridges, sidewalks, curbs and gutters, park improvements and traffic signals.
h. lnterfund Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/from other funds" (i.e., the current portion of inter-fund loans) or "advances to/from other funds" (i.e., the non-current portion of inter-fund loans).

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2021
34 Note 1: Summary of Significant Accounting Policies (Continued) i. Deferred Outflows and lnflows of Resources
Deferred Outflows of Resources
In addition to assets, the Statement of Net Position and governmental fund Balance Sheet will sometimes report a separate section for deferred outflows of resources.

This separate financial statement element, deferred outflows of resources, represents a consumption of net position of fund balance that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City has two items that qualify for reporting in this category. Deferred pension related outflows from changes in net pension and total OPEB liability arise only under a full accrual basis of accounting and are reported in the government-wide Statement of Net Position.

Deferred Inflows of Resources
In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and thus will not be recognized as an inflow of resources (revenue) until that time. The City has one item which qualifies for reporting in this category. Deferred pension related inflows from changes in net pension liability arise only under a full accrual basis of accounting and are reported in the governmentwide Statement of Net Position. Additionally, unavailable revenues arise only under a modified accrual basis of accounting and are reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from two sources: grants, and accrued interest on long-term receivables. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available.
j. Long-Term Debt
Long-term debt and other financed obligations are reported as liabilities in the government-wide financial statements and the fiduciary fund financial statements.

Bond premiums and discounts 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.

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2021
35 Note 1: Summary of Significant Accounting Policies (Continued) k. Compensated Absences
The City accrues a liability for compensated absences which meets the following criteria:

1. The City's obligation relating to employees' rights to receive compensation for future absences is attributable to employees' services already rendered.

2. The obligation relates to rights that vest or accumulate.

3. Payment of the compensation is probable.

4. The amount can be reasonably estimated.

A liability is recorded only if it has matured for unused vacation and similar compensatory leave balances since the employees' entitlement to these balances are attributable to services already rendered and it is probable that virtually all of these balances will be liquidated by either paid time off or payments upon termination or retirement.

A liability is recorded for unused sick leave balances only to the extent that it is probable that the unused balances will result in termination payments. This is estimated by including in the liability the unused balances of employees currently entitled to receive termination payment, as well as those who are expected to become eligible to receive termination benefits as a result of continuing their employment with the City.
l. Pension
PERS Pension Plans
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City's California Public Employees' Retirement System (CalPERS) plans (Plans) and additions to/deductions from the Plans' fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Net pension liabilities are generally liquidated by the City’s General Fund.

GASB Statement No. 68 requires that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used:

Valuation Date (VD) June 30, 2019
Measurement Date (MD) June 30, 2020
Measurement Period (MP) July 1, 2019 to June 30, 2020
City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2021
36 Note 1: Summary of Significant Accounting Policies (Continued) l. Pension (Continued)
PARS Pension Plans
For purposes of measuring the net pension liability, deferred outflows and inflows of resources related to pensions, and pension expense, information about the fiduciary net position and additions to/deductions from the fiduciary net position have been determined on the same basis as they are reported by the Public Agency Retirement Services (PARS) Financial Office. For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value. PARS audited financial statements are publicly available reports that can be obtained at PARS' website. Net pension liabilities are generally liquidated by the City’s General Fund.

GASB Statement No. 68 requires that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used:

Valuation Date (VD) June 30, 2019
Measurement Date (MD) June 30, 2021
Measurement Period (MP) July 1, 2020 to June 30, 2021
m. Postemployment Benefits Other than Pension (OPEB)
For purposes of measuring the total OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB and OPEB expense, information about the City's OPEB plan have been determined by an independent actuary. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Total OPEB liabilities are generally liquidated by the City’s General Fund.

Generally accepted accounting principles require that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used:

Valuation Date: June 30, 2020
Measurement Date: June 30, 2021
Measurement Period: July 1, 2020 to June 30, 2021
City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2021
37 Note 1: Summary of Significant Accounting Policies (Continued) n. Net Position and Fund Balance
Government-Wide Financial Statements
In the government-wide financial statements, net position is classified in the following categories:

Net Investment in Capital Assets consists of capital assets net of accumulated depreciation and reduced by outstanding debt and related deferred outflows and inflows of resources that are attributed to the acquisition, construction, or improvement of the assets.

Restricted net position includes amounts restricted by external creditors, grantors, contributors, laws or regulations of other governments.

Unrestricted net position is all net position that does not meet the definition of "net investment in capital assets" or "restricted net position." Sometimes the City will fund outlays for a particular purpose from both restricted and unrestricted resources. In order to calculate the amounts to report as restricted net position and unrestricted net position in the government-wide financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the City’s policy to consider restricted net position to have been depleted before unrestricted net position is applied.

Fund Financial Statements
In the fund financial statements, government funds report the following fund balance classification:

Non-spendable includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact.

Restricted includes amounts that are constrained on the use of resources by either (a) external creditors, grantors, contributors, or laws of regulations of other governments or (b) by law through constitutional provisions or enabling legislation.

Committed includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the government’s highest authority, City Council. The formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution of the City Council.

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2021
38 Note 1: Summary of Significant Accounting Policies (Continued) n. Net Position and Fund Balance (Continued)
Fund Financial Statements (Continued)
Assigned include amounts that are constrained by the government's intent to be used for specific purposes but are neither restricted nor committed. The Finance Director and/or Treasurer is authorized to assign amounts to a specific purpose, which was established by the governing body in resolution.

Unassigned include the residual amounts that have not been restricted, committed, or assigned to specific purposes. The General Fund is the only fund that should report this category of fund balance, unless a negative fund balance exists.

An individual governmental fund could include non-spendable resources and amounts that are restricted or unrestricted (committed, assigned, or unassigned) or any combination of those classifications. Restricted amounts are to be considered spent when an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available and committed, assigned, then unassigned amounts are considered to have been spent when an expenditure is incurred for purposes for which amounts in any of those unrestricted fund balance classifications can be used.

Sometimes the City will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). ln order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the City's policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned, and lastly the unassigned fund balance.
o. Property Taxes
With the passage of Proposition 13 in 1978 (Article XlllA, California State Constitution), property taxes are limited to one percent of market value, plus additional taxes for repayment of existing or subsequent voter-approved indebtedness. Under Article XlllA, the market value of taxable property is subject to a maximum annual increase of two percent. Market value may be appraised at significantly more than two percent depending on other factors such as improvements, sale or change of ownership.

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2021
39 Note 1: Summary of Significant Accounting Policies (Continued) o. Property Taxes (Continued)
The City receives a portion of the one percent general tax levy which is shared by several other local governments including the county and the school district. The City's share is based on a formula prescribed in Section 26912(b) of the Government Code. The county apportions property taxes to the City on a scheduled basis which generally adheres to the actual tax collection periods. The tax lien date is January 1 of each year and covers the ensuing fiscal year's tax returns. The tax levy date is from July 1 to June 30 of each year. The first installment becomes due on November 1 with penalties and interest accruing after December 10. The second installment is due no later than April 10.
p. Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities at the reporting date and revenue and expenses during the reporting period.

Actual results could differ from those estimates.

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2021
40 II. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
Note 2: Stewardship, Compliance and Accountability
Deficit Fund Balances
The following non-major governmental funds reported a deficit fund balance at June 30, 2021:

Deficit Fund
Balance
Governmental Funds:

Non-major Governmental Funds:

Gas Tax $ (9,960)
TDA Article 3 (Metro) (1,664)
Deficit in the Gas Tax Fund will be resolved with future collections, deficits in the TDA Article 3 (Metro) fund will be resolved with future grant revenue.

Expenditures in Excess of Appropriations
Excess of expenditures over appropriations in individual funds are as follows:

Final Budget Expenditures Excess
Non-major Funds:

State COPS Grant $ 121,000 $ 122,100 (1,100)$
Used Oil Recycling Grant 9,100 9,131 (31)
Department of Conservation Grant 8,512 8,906 (394)
City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2021
41 III. DETAILED NOTES ON ALL FUNDS
Note 3: Cash and Investments
Summary of Cash and Investments
Cash and investments as of June 30, 2021 are classified in the accompanying financial statements as follows:

Statement of Net Position:

Cash and investments $ 27,790,736
Fiduciary Funds:

Cash and investments 1,899,389
Cash and investments held with fiscal agents 2,506,777
Total $ 32,196,902
Cash and investments as of June 30, 2021, consist of the following:

Cash on hand $ 1,150
Deposits with financial institutions 7,385,738
Restricted cash held with fiscal agents 2,506,777
Investments 22,303,237
Total $ 32,196,902
Deposits
At June 30, 2021, the carrying amount of the City's deposits was $7,385,738 and the bank balance was $8,711,235. The $1,325,497 difference represents outstanding checks, deposits in transit and other reconciling items.

California Government Code requires California banks and savings and loan associations to secure a City's deposits by pledging government securities with a value of 110% of a City's deposits. California law also allows financial institutions to secure a City's deposits by pledging first trust deed mortgage notes having a value of 150% of a City's total deposits. The City Treasurer may waive the collateral requirement for deposits that are fully insured up to $250,000 by the FDIC. The collateral for deposits in federal and state-chartered banks is held in safekeeping by an authorized Agent of Depository recognized by the State of California Department of Banking. The collateral for deposits with savings and loan associations is generally held in safekeeping by the Federal Home Loan Bank in San Francisco, California as an Agent of Depository. These securities are physically held in an undivided pool for all California public agency depositors. Under Government Code Section 53655, the placement of securities by a bank or savings and loan association with an Agent of Depository has the effect of perfecting the security interest in the name of the local governmental agency.

Accordingly, all collateral held by California Agents of Depository is considered to be held for, and in the name of, the local governmental agency.

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2021
42 Note 3: Cash and Investments (Continued)
Summary of Cash and Investments (Continued)
As of June 30, 2021, deposits were not subject to custodial credit risk as they were entirely insured or collateralized with securities held by the City or the City's agent in the City's name.

Investments Authorized by the California Government Code and the City's Investment Policy
The table below identifies the investment types that are authorized for the City by the California Government Code and the City's investment policy. The table also identifies certain provisions of the California Government Code (or the City's investment policy, if more restrictive) that address interest rate risk and concentration of credit risk. This table does not address investments in vehicles which if not specifically mentioned in the City's investment policy, are not authorized unless the policy is amended by the City Council or are approved as indentures, rather than the general provisions of the California Government Code or the City's investment policy.

Maximum Maximum
Maximum Percentage or Amount Investment
Authorized Investment Type Maturity of Portfolio* in One Issuer U.S. Treasury Bills 1 year None None
U.S. Treasury Notes 10 years None None
Federal Agency Issues N/A None None
Certificates of Deposit 5 years None $250,000
Bankers' Acceptances 180 days 40% None
County Pool Investment Funds N/A 5% of County Pool None Local Agency Investment Fund (LAIF) N/A None None
U.S. Treasury Bonds 30 years None None
Mutual Funds N/A 5% None
Passbook Savings N/A None $250,000
Negotiable Certificates of Deposit N/A None None
*Excluding amounts held by bond trustees that are not subject to California Government Code restrictions.

No investment shall be made that will cause the total investment pool to have greater than 30% of investments to have a maturity date greater than two years. The City's investment policy does not contain any specific provisions intended to limit the City's exposure to interest rate risk, credit risk, and concentration of credit risk.

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2021
43 Note 3: Cash and Investments (Continued)
Investments as of June 30, 2021 consist of the following:

Fair Value
Investments Authorized by CA Government Code/City Investment Policy Local Agency Investment Fund (LAIF) $ 18,467,470
Certificates of deposit 3,835,767
Total Investments $ 22,303,237
Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The fair value of the City's investment in this pool is reported in the accompanying financial statements at amounts based upon the City's pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.

Fair Value Measurement
Fair value is defined as the price that would be received to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date.

A fair value hierarchy is established prioritizing the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows:

Level 1 - Inputs are quoted market prices (unadjusted) in active markets for identical assets or liabilities that the entity has the ability to access at the measurement date.

Level 2 - Inputs other than quoted prices within Level 1 that are observable, either directly or indirectly such as quoted prices for similar assets or liabilities in active markets or inactive markets, or inputs other than quoted prices that are observable for the asset or liability.

Level 3 - Inputs are unobservable. Valuations for assets and liabilities are derived from other valuation methodologies, including option pricing models, discounted cash flow models and similar techniques, and not based on market exchange, dealer, or broker traded transactions. Level 3 valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets or liabilities.

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2021
44 Note 3: Cash and Investments (Continued)
Fair Value Measurement (Continued)
The City uses appropriate valuation techniques based on the available inputs to measure the fair value of its investments. When available, the City measures fair value using Level 1 inputs because they generally provide the most reliable evidence of fair value. Level 3 inputs are only used when Level 1 or Level 2 inputs are not available.

The use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in different fair value measurement at the reporting date. The valuation levels are not necessarily an indication of the risk or liquidity associated with the underlying investments.

The City does not hold any investments subject to the fair value hierarchy.

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 to market interests is provided by the following table that shows the distribution of the City's investments by maturity:

Remaining Maturity (in Months)
12 Months 25 to 60 More than 60
Investment Type Fair Value or Less Months Months
Investments
Local Agency Investment Fund (LAIF) 18,467,470 $ $ 18,467,470 $ - $ - Certificates of deposit 3,835,767 992,639 1,012,910 1,830,218 Total Investments $ 22,303,237 $ 19,460,109 $ 1,012,910 $ 1,830,218 City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2021
45 Note 3: Cash and Investments (Continued)
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Investments in LAIF and certificates of deposit are not rated by a nationally recognized statistical rating organization.

Minimum
Credit
Investment Type Rating Fair Value Not Rated
Local Agency Investment Fund (LAIF) Not Rated 18,467,470 $ $ 18,467,470 Certificates of deposit Not Rated 3,835,767 3,835,767
Total Investments $ 22,303,237 $ 22,303,237
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.

The City did not have investments in any one issuer (other than U.S. Treasury securities, mutual funds, and external investment pools) that represent 5% or more of the City’s total investments.

Custodial Credit Risk
The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The City's investment policy requires that all securities owned by the City be held in third-party safekeeping by the trust department of the City's bank or another designated third-party trust, in the City's name and control, under the terms of a custody agreement executed by the trust institution and the City. Investments held by the City were not subject to custodial credit risk at June 30, 2021. As of June 30, 2021, no City investments were held by the same broker-dealer (counterparty) that was used by the City to buy the securities.

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2021
46 Note 4: Notes and Loans Receivable
The City's outstanding loans receivable as of June 30, 2021, are as follows:

Nonmajor Governmental Funds:

Housing rehabilitation loan program $ 308,553
Total $ 308,553
Housing Rehabilitation Loan Program
The Lawndale Housing Authority and Community Development Block Grant Special Revenue Funds operate a housing rehabilitation loan program, which provides loans to borrowers who meet certain qualifications for the purpose of rehabilitating their homes.

Loans that are not forgivable are secured by a deed of trust and are normally repaid when the relating home changes ownership. The City did not fund any new loans during the fiscal year. As of June 30, 2021, the outstanding receivable balance for the housing rehabilitation loan program was $308,553.

The balance of the forgivable loans receivable was $87,000 at June 30, 2021 and have been fully allowed for.

Note 5: Agreements with Successor Agency Receivable
The City previously loaned the former Lawndale Redevelopment Agency (RDA) funds prior to dissolution of various redevelopment activities. The repayment of these amounts has been approved by the California Department of Finance. Additionally, the former RDA agreed to reimburse the City for the debt service on the lease, under the terms of a Public Works Agreement between the City and former RDA. This reimbursement has also been approved by the California Department of Finance. With the dissolution of the City's former RDA pursuant to ABx1 26, repayment of the loans and reimbursement of the debt service on the lease is now being made by the Successor Agency to the former RDA, Lawndale Successor Agency (the Successor Agency).

During the 2015-16 fiscal year, the State of California passed Senate Bill 107 (SB 107) which amended the Health and Safety Code to require interest on loans between the City and the Successor Agency to be calculated quarterly using a 3% simple interest rate, from the previously required historical LAIF compounding interest rate. SB 107 also requires that any amount received relating to these outstanding balances must be applied towards the outstanding principal balance before it may be applied towards accrued interest. Because governmental funds are accounted for under the modified accrual basis of accounting, the amounts representing accrued interest have been deferred and reported as unavailable revenue on the governmental fund financial statements balance sheet. See Note 15 to the financial statements for additional information.

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2021
47 Note 5: Agreements with Successor Agency Receivable (Continued) As of June 30, 2021, agreements with the Successor Agency receivable were reported in the accompanying financial statements as follows:

Accrued Balance at
Principal Interest June 30, 2021
General Fund
Public Works Agreement -$ $ 249,529 $ 249,529
2000 Cooperation Agreement 2,640,076 2,449,369 5,089,445 2001 Cooperation Agreement 2,560,197 2,256,223 4,816,420 Subtotal General Fund 5,200,273 4,955,121 10,155,394
Restricted Urban Development
2000 Financing Agreement 5,274,387 4,143,064 9,417,451 Total $ 10,474,660 $ 9,098,185 $ 19,572,845 Note 6: lnterfund Receivables, Payables and Transfers
a. Due To/From Other Funds:

As of June 30, 2021, the City had the following due to/from other funds:

Due from
Other Funds
Due to Other Funds General Fund
Non-major Governmental Funds 76,034 $
Short-term loans from the General Fund to the Non-major Governmental Funds were made to eliminate short-term cash deficits.

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2021
48 Note 6: lnterfund Receivables, Payables and Transfers (Continued) b. Transfers ln/Out:

Transfers in and out for the year ended June 30, 2021, were as follows:

Transfers Out
Restricted
General Urban
Transfers In Fund Development Total
General Fund $ 57,130 - $ $ 57,130
Lawndale Housing Authority 204,483 47,098 251,581
$ 204,483 $ 104,228 $ 308,711
In FY 2020-2021, the General Fund and the Restricted Urban Development transferred $204,483 and $47,098, respectively, to the Lawndale Housing Authority to provide the 20% housing set aside funds required by the Successor Agency loans.

The Restricted Urban Development Fund transferred $10,000 to the General Fund for ineligible expenditures, $22,050 for UDAG expenses and $25,080 for the CitizenServe software implementation.

Note 7: Capital Assets
A summary of changes in capital assets activity for the year ended June 30, 2021, is as follows:

Construction
Balance at Placed Balance at
June 30, 2020 Additions in Service Disposals June 30, 2021 Capital assets not depreciated:

Land $ 5,215,937 $ - $ - $ 5,215,937 - $
Construction in progress 2,911,460 2,543,670 - 5,455,130 - Total capital assets not being depreciated 8,127,397 2,543,670 - 10,671,067 - Capital assets being depreciated:

Building and structures 18,192,044 - - 18,192,044 -
Improvements other than buildings 1,004,997 33,244 - 1,038,241 - Vehicles, machinery and equipment 2,892,630 - - (97,128) 2,795,502 Infrastructure 37,727,993 - - 37,727,993 - Total capital assets being depreciated 59,817,664 33,244 - (97,128) 59,753,780 Accumulated depreciation:

Building and structures 7,555,531 619,323 - 8,174,854 - Improvements other than buildings 362,702 28,322 - - 391,024 Vehicles, machinery and equipment 2,072,784 145,582 - (97,128) 2,121,238 Infrastructure 14,083,908 1,286,802 - 15,370,710 - Total accumulated depreciation 24,074,925 2,080,029 - (97,128) 26,057,826 Total capital assets being depreciated, net 35,742,739 (2,046,785) - 33,695,954 - Total capital assets, net $ 43,870,136 $ 496,885 $ - $ 44,367,021 - $ City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2021
49 Note 7: Capital Assets (Continued)
Depreciation expense was charged to functions/programs based on their usage of the related assets. The allocation of depreciation expense for the year ended June 30, 2021, is as follows:

General government $ 120,669
Municipal services 3,751
Planning and community development 611,715 Recreation and community services 3,750 Public works 1,340,144
Total $ 2,080,029
Note 8: Long-Term Debt
The following is a summary of changes in long-term debt for the year ended June 30, 2021:

Balance at Balance at Due Within
June 30, 2020 Additions Deletions June 30, 2021 One Year Direct borrowings:

Facility and site lease note 482,819 $ -$ 41,442$ $ 441,377 42,831$ Total $ 482,819 -$ 41,442$ $ 441,377 42,831$
Facility and Site Lease Note
In 2005, the City and the former RDA entered into a Public Works Agreement, as authorized by the Community Development Law, in which the former RDA agreed to provide funding for certain public works projects, and the City agreed to construct them.

In 2009, the former RDA funded most of the construction and land acquisition for Hopper Park. The former RDA wanted to finance a portion of the construction with California Infrastructure and Economic Development Bank (CIEDB), but in order to obtain the loan it was necessary to pledge a public facility. Since the former RDA did not own any public facilities, the City pledged a maintenance office building and a portion of the land located at 4722 Manhattan Beach Blvd., Lawndale, California, and on February 1, 2010, the City entered into a Facility and Site Lease Agreement with CIEDB. This agreement required that the City pay CIEDB "lease" payments on the pledged property, with the City retaining the title to the pledged property at the end of the lease term. CIEDB agreed to loan the City $830,100, to be used for the construction of Hopper Park. Under the terms of the Public Works Agreement, the former RDA was to reimburse the City for the debt service on the lease.

With the dissolution of the City's former RDA pursuant to ABx1 26, reimbursement of the debt service on the lease is now being made by the Successor Agency to the former RDA, Lawndale Successor Agency (the Successor Agency).

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2021
50 Note 8: Long-Term Debt (Continued)
Principal payments are due annually on August 1, with interest due semi-annually on February 1 and August 1. The annual interest rate on the facility and site lease is 3.35%, and the lease matures on August 1, 2029. Principal and interest payments remaining at June 30, 2021, are as follows:

Year Ended Facility and Site Lease Note
June 30, Principal Interest Total
2022 42,831$ 14,069$ 56,900$
2023 44,266 12,610 56,876
2024 45,748 11,102 56,850
2025 47,281 9,544 56,825
2026 48,865 7,933 56,798
2027-2030 212,386 14,523 226,909
Total 441,377$ 69,781$ 511,158$
Note 9: Compensated Absences
Vacation time may be accumulated up to two years' entitlement plus the current year's leave allowance. Cash compensation for accrued vacations is generally not payable until the employee terminates employment with the City. Cash compensation for unused sick leave is payable to an employee only upon termination of employment with the City and the employee is compensated at the rate of 50 percent of their sick leave daily rate, as long as it does not exceed the threshold of 391 hours of combined vacation and sick leave.

Cash compensation for vacation, sick leave, and compensatory time will be paid in future years from the General Fund. The following is a summary of changes in compensated absences liabilities for the year ended June 30, 2021:

Balance Balance Due in
June 30, 2020 Additions Deletions June 30, 2021 One Year Compensated Absences $ 484,012 250,197$ 171,649$ $ 562,560 270,760$ City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2021
51 Note 10: Liability, Workers' Compensation, and Purchased Insurance a. Description of Self-Insurance Pool Pursuant to Joint Powers Agreement The City of Lawndale is a member of the CALIFORNIA JOINT POWERS INSURANCE AUTHORITY (Authority). The Authority is composed of 123 California public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq. The purpose of the Authority is to arrange and administer programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group purchased insurance for property and other lines of coverage. The California JPIA began covering claims of its members in 1978. Each member government has an elected official as its representative on the Board of Directors. The Board operates through a nine member Executive Committee.
b. Primary Self-Insurance Programs of CJPIA
Each member pays an annual contribution at the beginning of the coverage period. A retrospective adjustment is then conducted annually thereafter, for coverage years 2012- 13 and prior. Coverage years 2013-14 and forward are not subject to routine annual retrospective adjustment. The total funding requirement for primary selfinsurance programs is based on an actuarial analysis. Costs are allocated to individual agencies based on payroll and claims history, relative to other members of the risk-sharing pool.

Primary Liability Program
Claims are pooled separately between police and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members.

A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $100,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $100,000 to $500,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $500,000 to $50 million, are distributed based on the outcome of cost allocation within the first and second loss layers.

The overall coverage limit for each member, including all layers of coverage, is $50 million per occurrence. Subsidence losses have a sub-limit of $50 million per occurrence. The coverage structure includes retained risk that is pooled among members, reinsurance, and excess insurance. More detailed information about the various layers of coverage is available on the following website:
https://cjpia.org/coverage/risk-sharing-pools/.

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2021
52 Note 10: Liability, Workers' Compensation, and Purchased Insurance (Continued) b. Primary Self-Insurance Programs of CJPIA (Continued) Primary Workers' Compensation Program
Claims are pooled separately between public safety (police and fire) and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $50,000 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 $50,000 to $100,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $100,000 to statutory limits are distributed based on the outcome of cost allocation within the first and second loss layers.

For 2020-21 the Authority’s pooled retention is $1 million per occurrence, with reinsurance to statutory limits under California Workers’ Compensation Law.

Employer’s Liability losses are pooled among members to $1 million. Coverage from $1 million to $5 million is purchased through reinsurance policies, and Employer’s Liability losses from $5 million to $10 million are pooled among members. c. Purchased lnsurance
Pollution Legal Liability Insurance
The City of Lawndale participates in the pollution legal liability insurance program which is available through the Authority. The policy covers sudden and gradual pollution of scheduled property, streets, and storm drains owned by the City of Lawndale. Coverage is on a claims-made basis. There is a $50,000 deductible. The Authority has an aggregate limit of $50 million for the 3-year period from July 1, 2018 through July 1, 2021. Each member of the Authority has a $10 million sub-limit during the 3-year policy term.

Property Insurance
The City of Lawndale participates in the all-risk property protection program of the Authority. This insurance protection is underwritten by several insurance companies.

City of Lawndale property is currently insured according to a schedule of covered property submitted by the City of Lawndale to the Authority. City of Lawndale property currently has all-risk property insurance protection in the amount of $31,004,416. There is a $10,000 deductible per occurrence except for nonemergency vehicle insurance which has a $2,500 deductible.

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2021
53 Note 10: Liability, Workers' Compensation, and Purchased Insurance (Continued) c. Purchased lnsurance (Continued)
Crime Insurance
The City of Lawndale purchases crime insurance coverage in the amount of $1,000,000 with a $2,500 deductible. The fidelity coverage is provided through the Authority.
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 2020-21.

Note 11: Defined Benefit Pension Plan
Summary of Pension Plans
Net Pension
Liability
Deferred
Outflows
Deferred
Inflows
Pension
(Income)/
Expense
CalPERS Plan 8,386,672 $ $ 1,926,962 (551,495)$ $ 1,442,346 PARS Plan 20,460 54,070 (69,231) (7,633)
Totals $ 8,407,132 $ 1,981,032 (620,726)$ $ 1,434,713
CalPERS Miscellaneous Cost Sharing Plan
a. General Information about the Pension Plan
Plan Description
All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost-Sharing Multiple-Employer Defined Benefit Pension Plan (Plan or PERF C) administered by the California Public Employees’ Retirement System (CalPERS.) The Plan consists of a miscellaneous pool and a safety pool (also referred to as “risk pools”), which are comprised of individual employer miscellaneous and safety rate plans, respectively. Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous pools.

Accordingly, rate plans within the safety or miscellaneous pools are not separate plans under generally accepted accounting principles. Individual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools. The City sponsors two miscellaneous plans. Benefit provisions under the Plan are established by State statute and City resolution.

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2021
54 Note 11: Defined benefit pension plan (Continued)
a. General Information about the Pension Plan (Continued) Plan Description (continued)
CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS’ website, at www.calpers.ca.gov.

Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 5 years of service. The death benefit is one of the following:
the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost-of-living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.

The Plan operates under the provisions of the California Public Employees’ Retirement Law (PERL), the California Public Employees’ Pension Reform Act of 2013 (PEPRA), and the regulations, procedures and policies adopted by the CalPERS Board of Administration. The Plan’s authority to establish and amend the benefit terms are set by the PERL and PEPRA, and may be amended by the California state legislature and in some cases require approval by the CalPERS Board.

The Plan’s provisions and benefits in effect at June 30, 2021 are summarized as follows:

Miscellaneous
Prior to On or after
Hire date January 1, 2013 January 1, 2013
Benefit formula 2.0% @ 55 2.0% @ 62
Benefit vesting schedule 5 years of service 5 years of service Benefit payments monthly for life monthly for life
Retirement age 50 - 55 52 - 67
Monthly benefits, as a % of eligible compensation 1.426% to 2.418% 1.000% to 2.500% Required employee contribution rates 6.908% 6.750%
Required employer contribution rates 11.031% 7.732%
City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2021
55 Note 11: Defined benefit pension plan (Continued)
a. General Information about the Pension Plan (Continued) 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. For public agency cost-sharing plans covered by either the Miscellaneous or Safety risk pools, the Plan’s actuarially determined rate is based on the estimated amount necessary to pay the Plan’s allocated share of the risk pool’s costs of benefits earned by employees during the year, and any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended.

Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions. Employer Contributions to the Plan for the fiscal year ended June 30, 2021 were $883,365. The actual employer payments of $782,158 made to CalPERS by the City during the measurement period ended June 30, 2020 differed from the City’s proportionate share of the employer’s contributions of $1,156,992 by $374,834, which is being amortized over the expected average remaining service lifetime in the Public Agency Cost-Sharing Multiple Employer Plan.
b. Net Pension Liability
The City’s net pension liability for the Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability is measured as of June 30, 2020, using an annual actuarial valuation as of June 30, 2019 rolled forward to June 30, 2020 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is as follows.

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2021
56 Note 11: Defined benefit pension plan (Continued)
b. Net Pension Liability (Continued)
Actuarial Methods and Assumptions Used to Determine Total Pension Liability Valuation Date June 30, 2019
Measurement Date June 30, 2020
Actuarial Cost Method Entry age normal
Asset Valuation Method Market Value of Assets
Actuarial Assumptions:

Discount Rate 7.15%
Inflation 2.50%
Salary Increases Varies by Entry Age and Service
Mortality Rate Table (1) Derived using CalPERS' membership data for all funds Post Retirement Benefit Increase The lesser of contract COLA or 2.50% until Purchasing Power Protection Allowance floor on purchasing power applies, 2.50% thereafter
(1) The mortality table used was developed based on CalPERS' specific data. The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from December 2017 that can be found on the CalPERS website.

All other actuarial assumptions used in the June 30, 2019 valuation were based on the results of an actuarial experience study for the period from 1997 to 2015, including updates to salary increase, mortality and retirement rates. The Experience Study report can be obtained at CalPERS’ website, at www.calpers.ca.gov.

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

In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2021
57 Note 11: Defined benefit pension plan (Continued)
b. Net Pension Liability (Continued)
Long-term Expected Rate of Return (Continued)
The expected real rates of return by asset class are as follows:

Assumed Asset Real Return Real Return
Asset Class1 Allocation Years 1 - 102 Years 11+3 Global equity 50.0% 4.80% 5.98% Fixed income 28.0% 1.00% 2.62%
Inflation assets 0.0% 0.77% 1.81%
Private equity 8.0% 6.30% 7.23%
Real assets 13.0% 3.75% 4.93%
Liquidity 1.0% 0.00% -0.92%
2An expected inflation of 2.00% used for this period
3An expected inflation of 2.92% used for this period
1 In the System's ACFR, fixed income is included in Global Debt Securities; Liquidity is included in Short-term Investments; Inflation Assets are included in both Global Equity Securities and Global Debt Securities.

Change of Assumptions
The Plan adopted a new amortization policy effective with the 2019 actuarial valuation. The new amortization policy shortens the period over which actuarial gains and losses are amortized from 30 years to 20 years with the payments computed as a level dollar amount. In addition, the new policy does not utilize a five-year ramp-up and ramp-down on UAL bases attributable to assumption changes and noninvestment gains/losses. The new policy also does not utilize a five-year ramp-down on investment gains/losses. These changes apply only to new UAL bases established on or after June 30, 2019.

Discount Rate
The discount rate used to measure the total pension liability for PERF C was 7.15%.

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

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2021
58 Note 11: Defined benefit pension plan (Continued)
b. Net Pension Liability (Continued)
Pension Plan Fiduciary Net Position
Information about the pension plan’s assets, deferred outflows of resources, liabilities, deferred inflows of resources, and fiduciary net position are presented in CalPERS’ audited financial statements, which are publicly available reports that can be obtained at CalPERS’ website, at www.calpers.ca.gov. The plan’s fiduciary net position and additions to/deductions from the plan’s fiduciary net position have been determined on the same basis used by the pension plan, which is the economic resources measurement focus and the accrual basis of accounting. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. Investments are reported at fair value.
c. Proportionate Share of Net Pension Liability
The following table shows the Plan’s proportionate share of the net pension liability over the measurement period.

Plan Total Plan Fiduciary Net Pension
Pension Liability Net Position Liability
(a) (b) (c) = (a) - (b)
Balance at: 6/30/2019 (VD) $ 32,842,725 $ 25,183,009 $ 7,659,716 Balance at: 6/30/2020 (MD) 34,281,941 25,895,269 8,386,672 Net Changes during 2019-20 $ 1,439,216 $ 712,260 $ 726,956 Valuation Date (VD), Measurement Date (MD)
Increase (Decrease)
The Local Government’s proportion of the net pension liability was determined by CalPERS using the output from the Actuarial Valuation System and the fiduciary net position, as provided in the CalPERS Public Agency Cost-Sharing Allocation Methodology Report, which is a publicly available report that can be obtained at CalPERS’ website, at www.calpers.ca.gov.

The City’s proportionate share of the net pension liability for the miscellaneous Plan as of the June 30, 2019 and 2020 measurement dates was as follows:

Proportionate Share - June 30, 2019 0.19128%
Proportionate Share - June 30, 2020 0.19883%
Change - Increase (Decrease) 0.00755%
City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2021
59 Note 11: Defined benefit pension plan (Continued)
c. Proportionate Share of Net Pension Liability (Continued) Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate
The following presents the City’s proportionate share of the net pension liability of the Plan as of the measurement date, calculated using the discount rate of 7.15 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (6.15 percent) or 1 percentage-point higher (8.15 percent) than the current rate:

Discount Rate - 1% Current Discount Discount rate + 1%
(6.15%) (7.15%) (8.15%)
Plan's Net Pension
Liability $ 12,948,762 $ 8,386,672 $ 4,617,161
Subsequent Events
There were no subsequent events that would materially affect the results presented in this disclosure.

Amortization of Deferred Outflows and Deferred Inflows of Resources Under GASB 68, gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time.

The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense.

The amortization period differs depending on the source of the gain or loss:

Net difference between
projected and actual
earnings on pension plan
investments
5 year straight-line amortization
All other amounts Straight-line amortization over the expected average remaining service lives (EARSL) of all members that
are provided with benefits (active, inactive and retired) as of the beginning of the measurement period
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) in the Public Agency Cost-Sharing Multiple-Employer Plan (PERF C).

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2021
60 Note 11: Defined benefit pension plan (Continued)
c. Proportionate Share of Net Pension Liability (Continued) Amortization of Deferred Outflows and Deferred Inflows of Resources (Continued)
The EARSL for PERF C for the measurement period ending June 30, 2020 is 3.8 years, which was obtained by dividing the total service years of 548,581 (the sum of remaining service lifetimes of the active employees) by 145,663 (the total number of participants: active, inactive, and retired) in PERF C. 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.
d. Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions
As of the start of the measurement period (July 1, 2019), the City’s net pension liability was $7,659,716. For the measurement period ending June 30, 2020 (the measurement date), the Local Government incurred a pension expense of $1,442,346.

As of June 30, 2021, the City has deferred outflows and deferred inflows of resources related to pensions as follows:

Deferred Outflows
of Resources
Deferred Inflows
of Resources
Differences between expected and
actual experience $ 432,190 $ - Changes of assumptions - (59,817) Net difference between projected and
actual earnings on pension plan
investments 249,139 - Changes in employer's proportion 362,268 - Differences between the employer’s contributions and the employer’s
proportionate share of contributions - (491,678)
Pension contributions subsequent to
measurement date 883,365 - Total $ 1,926,962 $ (551,495) City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2021
61 Note 11: Defined benefit pension plan (Continued)
d. Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions (Continued)
The amounts above are net of outflows and inflows recognized in the 2019-20 measurement period expense. Contributions subsequent to the measurement date of $883,365 reported with deferred outflows of resources will be recognized as a reduction of the net pension liability in the upcoming fiscal year. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in future pension expense as follows:

Measurement
Period Ended
June 30:

Deferred
Outflows/(Inflows)
of Resources
2021 $ 27,279
2022 185,277
2023 160,052
2024 119,494
2025 - Thereafter -
e. Payable to the Pension Plan
At June 30, 2021, the City reported a payable of $0 for the outstanding amount of contributions to the pension plan required for the year then ended.

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2021
62 Note 11: Defined benefit pension plan (Continued)
PARS Retirement Enhancement Plan
a. General Information about the Pension Plan
Plan Description
The City established an agent multiple-employer defined benefit Retirement Enhancement Plan (PARS-REP) administered by Public Agency Retirement System (PARS) for its Central Management Team (CMT) effective July 1, 2007. PARS-REP is a defined benefit 401 (a) tax-qualified multiple agency trust and meets the requirements of a pension trust under California Government code.

Benefits Provided
The plan provides supplemental retirement benefits in addition to CalPERS. Created in 1991 and amended in 1999, the PARS-REP plan has a master agreement between Phase II Systems - the Plan Administrator, Union Bank of California - the Custodian of funds and various participating agencies. The plan provides supplemental retirement benefits in addition to CalPERS. The Director of Finance/ City Treasurer is the internal plan administrator and bears the responsibility of completing and executing all plan documents, logistical payroll set-up, providing information on new participants and continuing disclosure in future years. Upon meeting the eligibility requirements, the plan provides a supplemental retirement benefit equal to the "3.0% at 55" plan factor (formula is a static 3.0% at age 55 and older), less the CalPERS "2% at 55" plan factors for years of City services as a CMT member. Employees will be eligible for the benefit upon attaining age 50 with two years of City service as a CMT member and concurrent CalPERS retirement. The plan was designed to reduce the high-level of turnover in top management and support the City's goal of retaining quality employees to ensure good public service.

The City later added the City Manager to the PARS-REP plan under a different tier in 2008. The latter individual received a "1% at 65" plan through PARS-REP. The City has full discretionary authority to control, amend, modify or terminate this plan at any time. Effective, January 1, 2013, the City entered into the PARS-REP plan under which the City Manager will no longer be covered under the plan.

Employees Covered
At June 30, 2021, the following employees were covered by the benefit terms of the Plan:

Description Members
Actives - Terminated vested and other inactives 1
Retirees and beneficiaries 5
Total 6
City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2021
63 Note 11: Defined Benefit Pension Plan (Continued)
a. General Information about the Pension Plan (Continued) Funding Policy
The City contributed 7.00% of eligible employees' gross wages to fund the benefits available under this plan in prior years. Employee contributions are not required. No employee or employer contributions were made in the current year.

PARS-REP issues a separate comprehensive annual financial report. Copies of PARS-REP annual financial report may be obtained from the PARS-REP Executive Office, 3961 MacArthur Boulevard, Suite 200, Newport Beach, California 92660. b. Net Pension Liability
Actuarial Methods and Assumptions Used to Determine Total Pension Liability For the measurement period ended June 30, 2021 (the measurement date), the total pension liability was determined by rolling forward the June 30, 2020 total pension liability. The June 30, 2020 and June 30, 2021 total pension liability was based on the following actuarial methods and assumptions:

Actuarial Cost Method Entry Age Normal
Actuarial Assumptions
Discount Rate 6.50%
Inflation 2.50%
Salary Increases Not applicable, no active participants.

Investment Rate of Return 6.50%
Cost of Living Adjustments 2.00%
Mortality Pre-retirement: Consistent with the Non-Industrial rates used to value the Miscellaneous Agency CalPERS Pension Plans after June 30, 2017.

Post-retirement: Consistent with the Non-Industrial rates used to value the Miscellaneous Agency CalPERS Pension Plans after June 30, 2017.

Retirement The assumed retirement age for terminated vested participants is 65.

Maximum Benefits and Salary Salary used in the calculation of final average compensation is subject to the limitations of IRC 401(a)(17). The limit is assumed to increase 2.75% per annum.

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2021
64 Note 11: Defined Benefit Pension Plan (Continued)
b. Net Pension Liability (Continued)
Long-term Expected Rate of Return
The best-estimate range for 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 capital market assumptions are per actuarial investment consulting practice as of January 1, 2021 are as follows:

Long-Term Long-Term
Expected Expected
Arithmetic Geometric
Target Real Rate Real Rate
Asset Class Index Allocation of Return of Return
US Cash BAML 3-Mon Tbill 1.49% -0.32% -0.32%
US Core Fixed Income Bloomberg Barclays Aggregate 46.26% 1.37% 1.26% US Equity Market Russell 3000 39.07% 5.33% 3.70%
Foreign Developed Equity MSCI EAFE NR 6.78% 6.27% 4.52% Emerging Market Equity MSCI EM NR 4.60% 8.64% 4.95%
US REITs FTSE NAREIT Equity REIT 1.80% 5.75% 3.57%
Assumed Inflation - Mean 2.30% 2.30%
Assumed Inflation - Standard Deviation 1.60% 1.16%
Portfolio Real Mean Return 3.64% 3.15%
Portfolio Nominal Mean Return (50th percentile) 5.94% 5.53% Portfolio Standard Deviation 9.31%
Long-Term Expected Rate of Return 6.50%
Change in Assumptions
Inflation decreased from 2.75% to 2.50%; salary increases are no longer applicable due to no active participants; change in mortality assumptions to be consistent with industrial rates used to value Miscellaneous Agency CalPERS Pension Plans after June 30, 2017 for both pre- and post-retirement.

Discount Rate
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.

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2021
65 Note 11: Defined Benefit Pension Plan (Continued)
b. Net Pension Liability (Continued)
Discount Rate (Continued)
A blended discount rate is generally required to be used to measure the Total Pension Liability (the Actuarial Accrued Liability calculated using the Individual Entry Age Normal Cost Method). The long-term expected return on plan investments may be used to discount liabilities to the extent that the plan's Fiduciary Net Position (fair market value of assets) is projected to cover benefit payments and administrative expenses. A 20-year high quality (AA/Aa or higher) municipal bond rate must be used for periods where the Fiduciary Net Position is not projected to cover benefit payments and administrative expenses. Determining the discount rate will often require that the actuary perform complex projects asset values. Alternative evaluations of projected solvency are allowed, if such evaluation can reliably be made.

Pension Plan Fiduciary Net Position
Information about the plan’s fiduciary net position are issued in a separate comprehensive annual financial report and may be obtained from the PARS-REP Executive Office, 3961 MacArthur Boulevard, Suite 200, Newport Beach, California 92660.
c. Changes in the Net Pension Liability
The following table shows the changes in net pension liability recognized over the measurement period for the PARS Plan.

Total Pension
Liability
(a)
Plan Fiduciary
Net Position
(b)
Net Pension
Liability
(c) = (a) - (b)
Balance as of June 30, 2020 $ 849,943 $ 681,383 $ 168,560 Changes for the year:

Interest on the total pension liability 53,430 - 53,430 Benefit payments (56,764) (56,764) - Employer Contributions - 54,070 (54,070) Net investment income 151,416 - (151,416)
Administrative expenses - (3,956) 3,956
Balance as of June 30, 2021 $ 846,609 $ 826,149 $ 20,460 Increase (Decrease)
City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2021
66 Note 11: Defined Benefit Pension Plan (Continued)
c. Changes in the Net Pension Liability (Continued)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the City of Lawndale, calculated using the discount rate of 6.50%, as well as what the Plan's net pension liability would be if it were calculated using a discount rate that is 1 % point lower (5.50%) or 1% point higher (7.50%) than the current rate.

Discount Rate - 1% Current Discount Discount rate + 1%
(5.50%) (6.50%) (7.50%)
Net Pension Liability $ 110,744 $ 20,460 $ (56,033)
d. Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions
As of the start of the measurement period, July 1, 2020, the net pension liability was $168,560. For the measurement period ending June 30, 2021, the City incurred a pension income of $7,633 for the PARS Plan. A complete breakdown of the pension income is as follows:

Description Amount
Interest on total pension liability $ 53,430
Administrative expenses 3,956
Expected investment return of net
investment expenses (45,562)
Recognition of deferred inflows/outflows
of resources:

Investment gains or losses (19,457)
Pension income $ (7,633)
Note that no adjustments have been made for contributions subsequent to the measurement date. Adequate treatment of any contributions made after the measurement date is the responsibility of the City.

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2021
67 Note 11: Defined Benefit Pension Plan (Continued)
d. Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
As of June 30, 2021, the City reported deferred outflows and deferred inflows of resources related to pensions as follows:

Deferred Outflows
of Resources
Deferred Inflows
of Resources
Net difference between projected
and actual earnings $ - $ (69,231)
Contributions made subsequent to
the measurement date 54,070 - Total $ 54,070 $ (69,231) Amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in future pension expense as follows:

Measurement period
ended June 30
Deferred Inflows of
Resources
2022 $ (15,571)
2023 (16,025)
2024 (16,465)
2025 (21,170)
2026 - Thereafter -
For the fiscal year ended June 30, 2021, the City recognized an aggregate pension expense of $1,434,713.

Note 12: Other Post-Employment Benefits Plan
Plan Description
The City provides retiree medical benefits under the CalPERS health plan which provides medical insurance benefits to eligible retirees and their spouses in accordance with various labor agreements. The plan is considered to be a single-employer defined benefit plan. Copies of the CalPERS annual financial report may be obtained from the CalPERS Executive Office, 400 P Street, Sacramento, California 95814.

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2021
68 Note 12: Other Post-Employment Benefits Plan (Continued) Employees Covered
As of the June 30, 2021, actuarial valuation, membership of the plan consisted of the following:

Participating active employees 45
Inactive employees receiving benefits 23
Inactive employees entitled to, but not receiving benefits - Total number of participants 68 Contributions
The contribution requirements of plan members and the City are established and may be amended by the City Council, and/or the employee associations. The City is currently funding this OPEB obligation based on a pay-as-you-go basis. For the measurement date ended June 30, 2021, the City's cash contributions were $233,422.

Total OPEB Liability
The City's total OPEB liability was measured as of June 30, 2021 and was determined by an actuarial valuation dated June 30, 2020, based on the following actuarial methods and assumptions:

Actuarial Assumptions June 30, 2021 Measurement Date
Actuarial Valuation Date June 30, 2020
Contribution Policy No pre-funding
Discount Rate 2.16% in 2021
General Inflation 2.50%
Mortality, Retirement,
Disability, Termination
Based on CalPERS 2017 CalPERS Mortality for
Miscellaneous and School Employees
Salary increases 2.75% per year
Medical Trend 4% per year
Healthcare Participation Current Actives:
100%
Current Retirees:
100%
Subsidy is not applicable in calculating the total projection of benefit payments.

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2021
69 Note 12: Other Post-Employment Benefits Plan (Continued) Change of Assumptions
The discount rate decreased from 2.20% to 2.16%.

Discount Rate
The discount rate used to measure the total OPEB liability was 2.16 percent. The discount rate is based on the Bond Buyer 20 Bond Index. The City does not participate in a trust fiduciary fund.

Changes in the Total OPEB Liability
The changes in the total OPEB liability for the Plan are as follows:

Total OPEB
Liability
Balance at June 30, 2020
(6/30/20 measurement date) $ 6,965,096
Changes recognized for the measurement period:

Service cost 425,674
Interest 155,567
Benefit payments (213,405)
Change in assumptions 46,222
Net changes 414,058
Balance at June 30, 2021
(6/30/21 measurement date) $ 7,379,154
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate The following presents the total OPEB liability of the City if it were calculated using a discount rate that is one percentage point lower or one or one percentage point higher than the current rate, for measurement period ended June 30, 2021:
1% Decrease
(1.16%)
Current Discount
Rate (2.16%)
1% Increase
(3.16%)
Total OPEB Liability $ 8,625,710 $ 7,379,154 $ 6,377,156 City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2021
70 Note 12: Other Post-Employment Benefits Plan (Continued) Sensitivity of the total OPEB Liability to Changes in the Health Care Cost Trend Rates The following presents the total OPEB liability of the City if it were calculated using health care cost trend rates that are one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2021:
1% Decrease
Current
Healthcare Cost
Trend Rates 1% Increase
Total OPEB Liability $ 6,133,678 $ 7,379,154 $ 9,002,790 OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2021, the City recognized OPEB expense of $845,075. A complete breakdown of OPEB expense is as follows:

Description Amount
Service cost $ 425,674
Interest cost 155,567
Recognition of experience (gains)/loss deferrals 29,450 Recognition of assumption change deferrals 234,384 Total OPEB expense $ 845,075
As of fiscal year ended June 30, 2021, the City reported deferred outflows and deferred inflows of resources related to OPEB from the following sources:

Deferred
Outflows of
Resources
Deferred Inflows
of Resources
Difference between expected and actual experience $ 217,930 $ - Changes of assumptions 1,698,444 - Total $ 1,916,374 $ - Amount reported as deferred outflows related to OPEB will be recognized in future OPEB expense as follows:

Year Ended
June 30,
Deferred
Outflows of
Resources
2022 $ 263,834
2023 263,834
2024 263,834
2025 263,834
2026 263,834
Thereafter 597,204
City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2021
71 Note 13: Commitments and Contingencies
As of June 30, 2021, in the opinion of City Management, there were no additional outstanding commitments or contingencies that would have a significant effect on the financial position of the City.

Note 14: Prior Period Adjustment
a. Government-wide Financial Statements
Restatement of governmental activities beginning net position for the year ended June 30, 2021, is summarized as follows:

Governmental
Activities
Net position, beginning of year, as originally reported 74,063,781 $ Restatement 392,659
Net position, beginning of year, as restated $ 74,456,440 Restatement was made in the amount of $392,659 due the Community Development Fund being presented as a component of the General Fund rather than a proprietary activity.
b. Governmental Fund Financial Statements
Restatement of governmental fund beginning fund balance for the year ended June 30, 2021, is summarized as follows:

General Fund
Fund balance, beginning of year,
as originally reported $ 17,678,423
Restatement 285,958
Fund balance, beginning of year, as restated 17,964,381 $ Restatement for the General Fund is for the same purpose as the government-wide statements, detailed above. The difference between the two amounts is due to the differences of measurement focus.

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2021
72 Note 15: Successor Agency to the Former Lawndale Redevelopment Agency On December 29, 2011, the California Supreme Court upheld AB 1X 26 that provides for the dissolution of all redevelopment agencies in the State of California. The Lawndale Successor Agency (the Successor Agency), a legally separate entity from the City itself, assumed the former Lawndale Redevelopment Agency (RDA)'s assets and obligations, and is responsible for winding down the remaining activities of the former RDA.

After enactment of the law, redevelopment agencies in the State of California could not enter into new projects, obligations or commitments. Subject to the control of an oversight board, remaining assets can only be used to pay enforceable obligations in existence at the date of dissolution (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments).

Successor agencies are only allocated revenue in the amount that is necessary to pay the estimated annual installment payments on the enforceable obligations as approved by the Successor Agency Oversight Board and the California Department of Finance. a. Cash and Investments
As of June 30, 2021, cash and investments were reported in accompanying financial statements as follows:

Lawndale
Successor
Agency
Cash and investments $ 1,800,853
Cash and investments held with fiscal agents 2,506,777 Total $ 4,307,630 b. Notes and Loans Receivable
Anthony's Ready Mix
In October 2008, the former Lawndale Redevelopment Agency (RDA) sold a piece of property to Anthony's Ready Mix and accepted a loan. In April 2011, the former RDA assigned the loan receivable to the City's General Fund. In June of 2011, the California legislature approved AB1X 26 which set in motion the dissolution of redevelopment agencies and also contained language to invalidate asset transfers from redevelopment agencies to cities that occurred after January 1, 2011. As required by AB 1484 the Lawndale Successor Agency prepared an All Other Funds Due Diligence Review (DDR) that discloses the transfer of the loan from the Agency to the City. The State Controller's Office (SCO) conducted a review of the assets transferred by the former RDA, and issued a letter disallowing the transfer for the original balance of the note, in the amount of $196,726. The outstanding balance of the notes receivable as of July 1, 2015, of $182,352 was transferred back to the Successor Agency with cash totaling $14,374 from repayments on the notes receivable. The balances was paid in full in the current fiscal year.

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2021
73 Note 15: Successor Agency to the Former Lawndale Redevelopment Agency (Continued) c. Long-Term Debt
A description of long-term debt outstanding of the Successor Agency as of June 30, 2021, is as follows:

Balance at Balance at Due Within
June 30, 2020 Additions Deletions June 30, 2021 One Year Tax Allocation Bonds
Tax Allocation Bonds, Series 2009 18,125,000 $ -$ 320,000 $ $ 17,805,000 $ 335,000 Bonds Discount (101,993) - (4,234) (97,759) (4,234)
Total Tax Allocation Bonds 18,023,007 - 315,766 17,707,241 330,766 Direct Borrowings
Tax Allocation Loan Agreement Note 1,103,746 - 74,944 1,028,802 77,679 Agreements with City 20,497,504 333,243 1,257,903 19,572,844 1,395,929 Total Direct Borrowings 21,601,250 333,243 1,332,847 20,601,646 1,473,608 Total $ 39,624,257 333,243$ $ 1,648,613 $ 38,308,887 $ 1,804,374 Tax Allocation Bonds, Series 2009
On November 1, 2009, the RDA issued $20,545,000 of Tax Allocation Bonds, Series 2009 to finance public improvements and redevelopment projects benefitting the Project Areas. Interest rates range from 2% to 5.6% with interest payable semiannually on February 1 and August 1 and principal maturing annually on August 1. Pursuant to Assembly Bill 1X 26, the bond was transferred to the Successor Agency from the former RDA on February 1, 2012. The bond is secured solely by future tax increment revenues allocated to the Successor Agency. As of June 30, 2021, the outstanding principal on the bonds was $17,805,000, and relating unamortized discount was $97,759. The debt service schedule for the Tax Allocation Bonds, Series 2009 is as follows:

Tax Allocation Bonds, Series 2009
Year Ending
June 30, Principal Interest Total
2022 $ 335,000 $ 961,988 $ 1,296,988
2023 350,000 946,138 1,296,138
2024 370,000 928,575 1,298,575
2025 385,000 909,700 1,294,700
2026 405,000 888,938 1,293,938
2027-2031 2,405,000 4,072,613 6,477,613
2032-2036 3,650,000 3,259,850 6,909,850
2037-2041 4,910,000 2,077,350 6,987,350
2042-2045 4,995,000 567,738 5,562,738
Total 17,805,000 $ $ 14,612,890 $ 32,417,890
The remedies available to the Trustee and the owners of the Bonds upon an event of default under the Indenture are dependent upon regulatory and judicial actions enforceable through various legal instruments by limitations imposed by bankruptcy, reorganization, solvency or other similar laws affecting the rights of creditors and by equitable remedies and proceedings.

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2021
74 Note 15: Successor Agency to the Former Lawndale Redevelopment Agency (Continued) c. Long-Term Debt (Continued)
Tax Allocation Loan Agreement Note
On April 30, 2002, the RDA entered into a Tax Allocation Loan Agreement with the California Infrastructure and Economic Development Bank (CIEDB). The CIEDB agreed to loan the former RDA an amount, up to $2,000,000, to be used by the former RDA for the Hawthorne Boulevard Revitalization Project.

Pursuant to Assembly Bill 1X 26, the loan was transferred to the Successor Agency from the former RDA on February 1, 2012. The loan is secured by future tax increment revenues and bears interest at a rate of 3.65% per annum. As of June 30, 2007, the $2,000,000 of loan proceeds were fully disbursed under the loan agreement. As of June 30, 2021, the outstanding principal on the note was $1,028,802.

The debt service schedule for the Tax Allocation Loan Agreement Note is as follows:

Tax Allocation Loan Agreement Note
Year Ending
June 30, Principal Interest Total
2022 $ 77,679 $ 36,134 $ 113,813
2023 80,515 33,247 113,762
2024 83,453 30,254 113,707
2025 86,499 27,153 113,652
2026 89,657 23,938 113,595
2027-2031 499,826 67,205 567,031
2032 111,173 2,029 113,202
Total $ 1,028,802 $ 219,960 $ 1,248,762
Agreements with City
The City previously loaned the former RDA funds prior to dissolution for various redevelopment activities. The repayment of these amounts has been approved by the California Department of Finance. Additionally, the former RDA agreed to reimburse the City for the debt service on the lease, under the terms of a Public Works Agreement between the City and former RDA. This reimbursement has also been approved by the California Department of Finance. With the dissolution of the City's former RDA pursuant to AB 1X 26, repayment of the loans and reimbursement of the debt service on the lease is now being made by the Successor Agency.

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2021
75 Note 15: Successor Agency to the Former Lawndale Redevelopment Agency (Continued) c. Long-Term Debt (Continued)
Agreements with City
During the 2015-16 fiscal year, the State of California passed Senate Bill 107 (SB 107) which amended the Health and Safety Code to require interest on loans between the City and the Successor Agency to be calculated quarterly using a 3% simple interest rate, from the previously required historical LAIF compounding interest rate. SB 107 also requires that any amount received relating to these outstanding balances must be applied towards the outstanding principal balance before it may be applied towards accrued interest. The Successor Agency experienced an extraordinary loss as a result of the revolution of the receivables and interest income earned on the receivables.

Note 16: COVID-19 Considerations
On March 11, 2020, the World Health Organization declared the novel strain of coronavirus (COVID-19) a global pandemic and recommended containment and mitigation measures worldwide. The COVID-19 outbreak in the United States caused business disruption through mandated and voluntary closings of businesses and shelter in place orders for all but those deemed essential services. While the business disruption was temporary, there is considerable uncertainty around the duration of the pandemic. Therefore, the ultimate financial impact and duration cannot be estimated at this time, and no adjustments have been made to these financial statements as a result of this uncertainty.

Note 17: Subsequent Event
On March 11, 2021, HR 1319, the American Rescue Plan Act of 2021 (ARPA), was signed into law. ARPA was designed to provide assistance to individuals, businesses and, state and local governments to assist in the economic recovery from the ongoing COVID-19 pandemic. The City of Lawndale was granted an allocation of $7,748,138, delivered in two tranches of $3,874,069 in July 2021 and June 2022.

The qualified use of these funds includes public safety, infrastructure, and restoration of services to pre-pandemic levels.

REQUIRED SUPPLEMENTARY

INFORMATION
City of Lawndale
Notes to Required Supplementary Information
For the Fiscal Year Ended June 30, 2021
76 Note 1: Stewardship, Compliance and Accountability
Budgetary Information
Procedures for establishing the budgetary data reflected in the budgetary comparison schedules are as follows:
 The annual budget adopted by the City Council provides for the general operation of the City. It includes a forecast of revenues for the fiscal year and proposed expenditures.
 The City Council approves total budgeted appropriations and any amendments to appropriations during the year for all governmental funds. This "appropriated budget" covers substantially all City expenditures, with the exception of debt service on bond issues which expenditures constitute legally authorized "nonappropriated budget." Actual expenditures may not exceed budgeted appropriations at the fund level. All appropriations lapse at year-end unless a carryover is authorized by the City Manager.
 Purchase commitments are recorded as encumbrances when purchase orders or contracts are issued. These encumbrances represent an allocation of fund balances. When the related goods or services are received, the encumbrance is liquidated and an expenditure and liability for payment to the vendor are recorded.  Budgets for the General Fund, Special Revenue Funds, and the Capital Projects Fund are adopted on a basis consistent with accounting principles generally accepted in the United States of America (U.S. GAAP).

City of Lawndale
Budgetary Comparison Schedule
General Fund
For the Fiscal Year Ended June 30, 2021
77 Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1, as restated $ 17,964,381 $ 17,964,381 $ 17,964,381 $ - Resources (Inflows):

Taxes 9,004,770 9,829,770 10,830,784 1,001,014
Licenses and permits 679,800 779,800 907,757 127,957
Intergovernmental 3,950,000 4,022,000 3,947,793 (74,207) Charges for services 1,010,273 1,625,273 1,733,434 108,161 Use of money and property 150,000 189,406 218,209 28,803 Fines and forfeitures 710,400 710,400 783,944 73,544
Miscellaneous 11,900 13,625 53,224 39,599
Transfers in 117,000 125,000 57,130 (67,870)
Proceeds from sale of capital asset - 59,612 62,074 2,462 Amounts Available for Appropriations 33,598,524 35,319,267 36,558,730 1,239,463 Charges to Appropriation (Outflows):

General government 4,585,434 4,840,805 4,288,560 552,245 Public safety 6,485,474 6,291,474 6,141,287 150,187
Code enforcement and animal control 1,131,620 1,131,620 1,087,863 43,757 Planning and community development 2,038,790 2,038,790 774,499 1,264,291 Recreation and community services 539,743 539,743 328,224 211,519 Public works 1,685,641 1,839,641 1,680,143 159,498
Capital outlay 201,784 201,784 380 201,404
Debt service:

Principal retirement 42,891 42,891 41,442 1,449
Interest and fiscal charges 15,480 15,480 16,929 (1,449) Transfers out 350,578 350,578 204,483 146,095
Total Charges to Appropriations 17,077,435 17,292,806 14,563,810 2,728,996 Budgetary Fund Balance, June 30 $ 16,521,089 $ 18,026,461 $ 21,994,920 $ 3,968,459 City of Lawndale
Budgetary Comparison Schedule
Restricted Urban Development
For the Fiscal Year Ended June 30, 2021
78 Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 6,222,722 $ 6,222,722 $ 6,222,722 $ - Resources (Inflows):

Use of money and property 11,110 11,110 8,450 (2,660)
Amounts Available for Appropriations 6,233,832 6,233,832 6,231,172 (2,660) Charges to Appropriation (Outflows):

Public Works 95,000 95,000 47,461 47,539
Transfers out 164,097 172,097 104,228 67,869
Total Charges to Appropriations 259,097 267,097 151,689 115,408 Budgetary Fund Balance, June 30 $ 5,974,735 $ 5,966,735 $ 6,079,483 $ 112,748 City of Lawndale
Schedule of the City’s Proportionate Share of the Net Pension Liability and Related Ratios as of the Measurement Date
CalPERS Cost Sharing Miscellaneous Plan
Last Ten Years*
79 Measurement Date
Proportion of the net
pension liability1 Proportionate share of
the net pension
liability Covered payroll
Proportionate share of
the net pension
liability as a
percentage of covered
payroll
Proportionate share of the
fiduciary net position as a
percentage of the Plan's
total pension liability
6/30/2014 0.007124% $ 4,213,742 $ 3,763,636 111.96% 79.82% 6/30/2015 0.064474% 4,425,429 3,608,780 122.63% 78.40%
6/30/2016 0.069070% 5,976,726 3,502,895 170.62% 74.06%
6/30/2017 0.071076% 7,048,744 3,654,304 192.89% 73.31%
6/30/2018 0.071947% 6,933,016 3,506,568 197.72% 77.51%
6/30/2019 0.074751% 7,659,716 3,400,803 225.23% 76.68%
6/30/2020 0.077080% 8,386,672 3,590,921 233.55% 75.54%
*Historical information is required only for measurement for which GASB 68 is applicable. 1 Proportion of the net pension liability represents the plan's proportion of PERF C, which includes both the Miscellaneous and Safety Risk Pools exclusing the 1959 survivors Risk Pool.

City of Lawndale
Schedule of Plan Contributions
CalPERS Cost Sharing Miscellaneous Plan
Last Ten Years*
80 Fiscal Year
Actuarally
Determined
Contribution
Contributions in Relation to the
Actuarially Determined
Contribution
Contribution
Deficiency
(Excess) Covered payroll
Contributions as a
Percentage of
Covered Payroll
2014-2015 $ 408,984 $ (408,984) $ 3,608,780 - $ 11.33%
2015-2016 492,655 (492,655) 3,502,895 - 14.06%
2016-2017 654,502 (654,502) 3,654,304 - 17.91%
2017-2018 600,369 (600,369) 3,506,568 - 17.12%
2018-2019 726,239 (726,239) 3,400,803 - 21.35%
2019-2020 782,158 (782,158) 3,590,921 - 21.78%
2020-2021 883,365 (883,365) 3,622,805 - 24.38%
*Historical information is required only for measurement for which GASB 68 is applicable.

Notes to Schedule:

Change in Benefit Terms: None
Change in Assumptions: For 2020, the Plan adopted a new amortization policy effective with the 2019 actuarial valuation. The new amortization policy shortens the period over which actuarial gains and losses are amortized from 30 years to 20 years with the payments computed as a level dollar amount. In addition, the new policy does not utilize a five-year ramp-up and ramp-down on UAL bases attributable to assumption changes and non-investment gains/losses.

The new policy also does not utilize a five-year ramp-down on investment gains/losses. These changes apply only to new UAL bases established on or after June 30, 2019. There were no changes in assumptions in 2019. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate in 2019. In 2017, the accounting discount rate was reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes in the discount rate. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 percent discount rate.

City of Lawndale
Schedule of Changes in Net Position Liability and Related Ratios as of the Measurement Date
PARS Retirement Enhancement Plan
For the Fiscal Year Ended June 30, 2021
81 Measurement Date 2021 2020 2019 2018
Total Pension Liability
Service cost -$ -$ 24,739$ 24,018$
Interest on the Total Pension Liability 53,430 57,391 56,830 53,115 Effect of economic/demographic gains or losses - (67,384) - 11,039 Effect of assumption changes or inputs - 4,554 (42,305) - Benefit payments, including refunds of employee contributions (56,764) (54,265) - (21,451) Net Change in Total Pension Liability (3,334) (59,704) 39,264 66,721 Total Pension Liability - Beginning 849,943 909,647 870,383 803,664 Total Pension Liability - Ending (a) $ 846,609 $ 849,943 $ 909,647 $ 870,385 Plan Fiduciary Net Position
Employer Contributions 54,070$ -$ 35,683$ 19,890$
Net investment income 151,416 21,288 42,049 40,514
Benefit payments, including refunds of employee contributions (56,764) (54,265) (42,305) (21,451) Administrative expenses (3,956) (3,535) (3,447) (3,463) Net Change in Fiduciary Net Position 144,766 (36,512) 31,980 35,490 Plan Fiduciary Net Position - Beginning 681,383 717,895 685,915 650,425 Plan Fiduciary Net Position - Ending (b) $ 826,149 $ 681,383 $ 717,895 $ 685,915 Plan Net Pension Liability - Ending (a) - (b) $ 20,460 $ 168,560 $ 191,752 $ 184,470 Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 97.6% 80.2% 78.9% 78.8%
Covered Payroll(1) -$ -$ -$ 314,042$
Plan Net Pension Liability as a Percentage of Covered Payroll N/A N/A N/A 58.7% *Historical information is required only for measurement for which GASB 68 is applicable. (1)There are no active employees eligible for the plan starting for measurement date 2019. (2)No actuarial valuation was performed for 2016.

Notes to Schedule:

Change in Benefit Terms: None.

Changes_of_Assumptions: Inflation decreased from 2.75% to 2.50%; salary increases are no longer applicable due to no active participants; change in mortality assumptions to be consistent with industrial rates used to value Miscellaneous Agency CalPERS Pension Plans after June 30, 2017 for both pre- and post-retirement.

Continued
82 2017 2016 (2) 2015
28,713$ -$ 45,100$
50,372 - 42,181 - - - 41,097 - - (14,562) - (8,974)
105,620 - 78,307
698,044 640,349 562,042
$ 803,664 $ 640,349 $ 640,349
19,889$ -$ 39,254$
60,634 - 14,293
(14,562) - (8,974)
(3,149) - (2,964)
62,812 - 41,609
587,613 586,056 544,447
$ 650,425 $ 586,056 $ 586,056
$ 153,239 $ 54,293 $ 54,293

80.9% 91.5% 91.5%
304,044$ 295,188$ 404,081$

50.4% 18.4% 13.4%
City of Lawndale
Schedule of Plan Contributions
PARS Retirement Enhancement Plan
Last Ten Years*
83 Fiscal Year
Actuarially
Determined
Contribution
Contribution in
Relation to the
Actuarially
Determined
Contribution
Contribution
Deficiency
(Excess) Covered payroll (1)
Contributions as
a Percentage of
Covered Payroll
2014-2015 $ 39,254 $ 39,254 $ - $ 404,081 9.71%
2015-2016 26,331 19,636 6,695 295,188 8.92%
2016-2017 40,955 19,889 21,066 304,044 13.47%
2017-2018 41,069 19,890 21,179 314,042 13.08%
2018-2019 53,827 35,683 18,144 - N/A
2019-2020 55,442 - 55,442 - N/A
2020-2021 24,980 54,070 (29,090) - N/A
*Historical information is required only for measurement for which GASB 68 is applicable. (1)There are no active employees eligible for the plan starting in fiscal year 2019.

Note to Schedule:

Valuation Date June 30, 2019
Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry age normal
Amortization method Level dollar, closed
Remaining amortization period 8 years
Inflation 2.50%
Salary Increases Not applicable, no active participants.

Investment rate of return 6.50%
Payroll Growth Not applicable, no active participants.

Cost of Living Adjustments 2.00%
Mortality Pre-retirement: Consistent with the Non-Industrial rates used to value Miscellaneous Agency CalPERS Pension Plans after June 30, 2017.

Post-retirement: Consistent with the Non-Industrial rates used to value Miscellaneous Agency CalPERS Pension Plans after June 30, 2017.

City of Lawndale
Schedule of Investment Returns
PARS Retirement Enhancement Plan
Last Ten Years*
84 Fiscal Year
Annual Money-Weighted Rate of
Return, Net of Investment Expense
2015 2.48%
2016 -0.14%
2017 10.14%
2018 6.15%
2019 6.18%
2020 3.08%
*Historical information is required only for measurement for which GASB 68 is applicable.

City of Lawndale
Schedule of Changes in the Total OPEB Liability and Related Ratios Last Ten Years*
85 Fiscal Year 2021 2020 2019 2018
Total OPEB Liability
Service cost $ 425,674 $ 205,330 $ 184,378 $ 179,443
Interest on the total OPEB liability 155,567 159,173 143,562 146,967 Experience (gains)/losses 276,830 - - - Changes in assumptions 46,222 1,930,822 209,309 - Benefit payments (213,405) (104,378) (99,021) (95,212) Net change in total OPEB liability 414,058 2,467,777 438,228 231,198 Total OPEB liability - beginning 6,965,096 4,497,319 4,059,091 3,827,893 Total OPEB liability - ending (a) $ 7,379,154 $ 6,965,096 $ 4,497,319 $ 4,059,091 Plan fiduciary net position as a percentage of the total OPEB liability 0.00% 0.00% 0.00% 0.00% Covered-employee payroll(1) $ 2,574,004 $ 2,535,647 $ 2,918,274 $ 2,935,427 Net OPEB liability as a percentage of covered-employee payroll 286.68% 274.69% 154.11% 138.28% Notes to Schedule:
(1)Contributions to the OPEB plan are not based on a measure of pay, therefore covered employee payroll is used.

No assets are accumulated in a trust that meets the criteria of GASB 75 to pay related benefits. * Historical information is required only for measurement for which GASB 75 is applicable.

Changes in assumptions: In 2021, the discount rate was decreased from 2.20% in 2020 to 2.16%. In 2020, the interest assumption decreased from 3.50% to 2.20%; mortality tables were updated to the 2017 CalPERS Mortality for Miscellaneous and Schools Employees; turnover rate tables were updated to the 2017 CalPERS Turnover for Miscellaneous Employees; retirement tables were updated to the 2017 CalPERS 2.0%@55 Rates for Miscellaneous Employees and 2017 CalPERS 2.0%@62 Rates for Miscellaneous Employees.

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SUPPLEMENTARY INFORMATION

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City of Lawndale
Non-Major Governmental Funds
86 Special Revenue Funds
The following special revenue funds have been classified as non-major funds:

Gas Tax - To account for highway users tax received under Street and Highways Code Sections 2103, 2105, 2106, and 2107 and expenditures of money apportioned for maintenance, rehabilitation, or improvement of public streets.

Air Quality - To account for quarterly allocations received from the California Air Resources Board – South Coast Air Quality Management District per Assembly Bill 2766 to be used for clean transportation programs and reduction of vehicle emissions.

Proposition A Local Transit Assistance - To account for the Los Angeles County Metropolitan Transportation Authority “per capita” allocation of twenty-five percent Proposition A half-cent sales tax effective July 1982 and designated for Local Return Programs to be used exclusively for public transit.

Narcotics Forfeiture - To account for resources used solely for investigation, detection and prosecution of criminal drug activities.

State COPS Grant - To account for money passed through the California Citizens Option for Public Safety (COPS) program to the Los Angeles County Supplemental Law Enforcement Services Account (SLESA) to local governments allocated based on population to be used exclusively to supplement existing frontline municipal police services.

CA Law Enforcement Equipment - To account for funds received from the State of California to be expended exclusively for law enforcement equipment.

Used Oil Recycling Grant - To account for money received from the California Department of Resources Recycling and Recovery (CalRecyle) based on “per capita” to administer the local used oil and used oil filter collection/recycling program as outlined in Public Resources Code Section 48691.

Lawndale Cable Usage Corporation - Accounts for Local Access and Franchise fees received by the nonprofit California Corporation and used to supplement the Lawndale CityTV (Channel 3) and Lawndale Community TV (Spectrum Channel 22 and Frontier Channel 29) costs for communication and transparency to the local community.

Department of Conservation Grant - To account for funds received and expended for park renovation projects.

Park Development - To account for park development fees assessed on new construction in accordance with Government Code Section 66000 et al. to be expended on park capital improvements.

Measure M Local Return - To account for the Los Angeles County Metropolitan Transportation Authority Traffic Improvement Plan Measure M half-cent sales tax effective July 2017 and designated for local jurisdictions to augment existing revenues for improving the efficiency and operations of streets and roads and/or increasing alternative transportation choices.

LA County Parks Maintenance Grant – To account for maintenance of parks and recreational facilities.

SB1 RMRA - To account for the State of California Road Maintenance and Rehabilitation Account (RMRA) funding received from taxes on gasoline and apportioned in accordance with the Street and Highway Code Section 2032(h). The funding is designated for basic road maintenance, rehabilitation, and critical safety projects on the local streets and roads system.

Ground Water Sustainability - To account for “AB 939” refuse fees to be expended on a groundwater sustainability program per Section 10730 of the Water Code and Lawndale Municipal Code Section

5.08.070.

City of Lawndale
Non-Major Governmental Funds (Continued)
87 Special Revenue Funds (Continued)
Disability Access - To account for the 90% share of the $4 State disability access and education fee collected on each business license issued in the City and restricted for certified access specialist training and certification, and/or to facilitate compliance with construction-related accessibility requirements per Government Code 4467 (b)(1).

Measure W Safe Clean Water – To account for the allocation of funds for improvements to the City’s stormwater collection system.

Coronavirus Relief Fund – To account for Federal Coronavirus Aid, Relief, and Economic Security (CARES) Act funding allocated in fiscal year 2020-21 based on City population and designated for necessary expenditures incurred between March 1 through December 30, 2020 due to the public health emergency with respect to the Coronavirus Disease 2019.

Lawndale Housing Authority Fund – Accounts for 20% of the Annual Recognized Obligation Payments received pursuant to Health and Safety Code section 34177(o)(1) from the Successor Agency of the former Lawndale Redevelopment Agency, which is set aside to provide affordable housing for persons and families of low and moderate income.

Capital Projects Funds
The following capital projects funds have been classified as non-major funds:

TDA Article 3 (Metro) – To account for funds provided by the State Transportation Development Act (TDA) through the Metro Transportation Commission designated for the design and construction of pedestrian, bicycle, and handicapped amenities.

Proposition C Local Transit Assistance - To account for the Los Angeles County Metropolitan Transportation Authority Proposition C one-half cent sales tax effective April 1991 distributed on a “per capita” basis and designated for street and road expenditures and signal synchronization on streets that carry regularly scheduled Fixed-Route Public Transit Services, most elements of Congestion Management Activities, and some elements Pavement Management Systems.

Community Development Block Grant - To account for expenditures and reimbursement of annual Federal Community Development Block Grant (CDBG) awards administered by the Los Angeles County Development Authority.

Prop C25 Grant - To account for Proposition C 25% transit-related local highway improvement funds designated for the Inglewood Avenue widening project.

Measure R - To account for the Los Angeles County Metropolitan Transportation Authority Measure R half-cent sales tax effective July 2009 and designated for transportation projects including synchronized traffic signals, pothole repairs, improved freeway traffic flow, and other community traffic relief projects.

Metro STPL Exchange 2017 - To account for $578,416 Los Angeles County Metropolitan Transportation Authority (LACMTA) Surface Transportation Program – Local Funds (STP-L) received in a March 13, 2017 exchange for Federal STP-L Funds ($590,220 less 2% fee of $11,804) and designated for street, highway, bridge and tunnel project, pedestrian and bicycle infrastructure and transit capital project eligible costs expended within five years of the exchange.

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City of Lawndale
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2021
88 Gas Tax Air Quality
Proposition A
Local Transit
Assistance
Narcotics
Forfeiture
State COPS
Grant
Assets
Cash and investments $ 27,105 $ 187,463 $ 1,970,048 $ 55,505 $ 149,176 Receivables:

Accounts - 10,890 - - - Grants - - - - - Accrued interest - 96 998 30 87 Notes and loans - - - - - Land held for development - - - - - Total Assets $ 27,105 $ 198,449 $ 1,971,046 $ 55,535 $ 149,263 Liabilities, Deferred Inflows
of Resources and Fund Balances
Liabilities
Accounts payable $ 32,080 $ - $ 458 $ - $ 10,175
Accrued liabilities 4,985 - 4,089 - - Due to other funds - - - - - Total Liabilities 37,065 - 4,547 - 10,175 Deferred Inflows of Resources
Unavailable revenues - - - - - Total Deferred Inflows of Resources - - - - - Fund Balances (deficit) Restricted for:

Community development projects - - - - - Public safety - - - 55,535 139,088 Recreation and community services - - 1,966,499 - - Public works - - - - - Air quality - 198,449 - - - Municipal services - - - - - Housing - - - - - Unassigned (9,960) - - - - Total Fund Balances (9,960) 198,449 1,966,499 55,535 139,088 Total Liabilities, Deferred Inflows of
Resources and Fund Balances $ 27,105 $ 198,449 $ 1,971,046 $ 55,535 $ 149,263 Special Revenue Funds
(Continued)
89 CA Law
Enforcement
Equipment
Used Oil
Recycling Grant
Lawndale Cable
Usage
Corporation
Department of
Conservation
Grant
Park
Development
Measure M
Local Return
$ 10,885 $ 9,365 $ 125,539 $ 25,751 $ 9,718 $ 1,396,448 - - 9,498 - - -
- - - - - -
- - 65 - 5 826
- - - - - -
- - - - - -
$ 10,885 $ 9,365 $ 135,102 $ 25,751 $ 9,723 $ 1,397,274 $ 417 $ 6,213 $ - $ - $ - $ 17,700
- - - - - -
- - - - - -
417 6,213 - - - 17,700
- - - - - -
- - - - - -
- - - - - -
10,468 - - - - -
- - - 25,751 9,723 -
- 3,152 - - - 1,379,574
- - - - - -
- - 135,102 - - -
- - - - - -
- - - - - -
10,468 3,152 135,102 25,751 9,723 1,379,574
$ 10,885 $ 9,365 $ 135,102 $ 25,751 $ 9,723 $ 1,397,274 Special Revenue Funds
City of Lawndale
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2021
90 LA County
Parks
Maintenance
Grant SB1 RMRA
Groundwater
Sustainability
Disability
Access
Measure W Safe
Clean Water
Assets
Cash and investments $ 4,056 $ 603,562 $ 513,645 $ 53,500 $ 230,852 Receivables:

Accounts - 110,803 78,722 - - Grants - - - - - Accrued interest 2 487 273 28 - Notes and loans - - - - - Land held for development - - - - - Total Assets $ 4,058 $ 714,852 $ 592,640 $ 53,528 $ 230,852 Liabilities, Deferred Inflows
of Resources and Fund Balances
Liabilities
Accounts payable $ - $ 27,703 $ 37,137 $ 127 $ - Accrued liabilities - 3,105 - - - Due to other funds - - - - - Total Liabilities - 30,808 37,137 127 - Deferred Inflows of Resources Unavailable revenues - - - - - Total Deferred Inflows of Resources - - - - - Fund Balances (deficit) Restricted for:

Community development projects - - - - - Public safety - - - - - Recreation and community services 4,058 - - - - Public works - 684,044 555,503 53,401 230,852 Air quality - - - - - Municipal services - - - - - Housing - - - - - Unassigned - - - - - Total Fund Balances 4,058 684,044 555,503 53,401 230,852 Total Liabilities, Deferred Inflows of
Resources and Fund Balances $ 4,058 $ 714,852 $ 592,640 $ 53,528 $ 230,852 Special Revenue Funds
(Continued)
91 Coronavirus
Relief Fund
Lawndale
Housing
Authority
TDA Article 3
(Metro)
Proposition C
Local Transit
Assistance
Community
Development
Block Grant Prop C25 Grant
$ - $ 1,420,151 $ - $ 2,493,116 $ - $ 125,647
- - 49,558 - - 5,176
- - - - 11,257 12,725
- 763 - 1,254 - -
- 96,297 - - 212,256 -
- 487,083 - - - - $ - $ 2,004,294 $ 49,558 $ 2,494,370 $ 223,513 $ 143,548 $ - $ 718 $ 2,478 $ 12,965 $ 25,314 $ 52,611
- 4,811 - 9,207 1,662 -
- - 48,744 - 27,290 -
- 5,529 51,222 22,172 54,266 52,611
- 2,795 - - - 12,725
- 2,795 - - - 12,725
- - - - 169,247 -
- - - - - -
- - - - - -
- - - 2,472,198 - -
- - - - - -
- - - - - -
- 1,995,970 - - - -
- - (1,664) - - 78,212
- 1,995,970 (1,664) 2,472,198 169,247 78,212
$ - $ 2,004,294 $ 49,558 $ 2,494,370 $ 223,513 $ 143,548 Special Revenue Funds Capital Projects Funds
City of Lawndale
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2021
92 Measure R
Metro STPL
Exchange 2017
Total
Non-major
Governmental
Funds
Assets
Cash and investments $ 757,964 $ 33,559 $ 10,203,055
Receivables:

Accounts - - 264,647
Grants 393,912 - 417,894
Accrued interest 701 40 5,655
Notes and loans - - 308,553
Land held for development - - 487,083
Total Assets $ 1,152,577 $ 33,599 $ 11,686,887
Liabilities, Deferred Inflows
of Resources and Fund Balances
Liabilities
Accounts payable $ 37,442 $ 28,387 $ 291,925
Accrued liabilities 3,008 401 31,268
Due to other funds - - 76,034
Total Liabilities 40,450 28,788 399,227
Deferred Inflows of Resources
Unavailable revenues 4,226 - 19,746
Total Deferred Inflows of Resources 4,226 - 19,746
Fund Balances (deficit)
Restricted for:

Community development projects - - 169,247
Public safety - - 205,091
Recreation and community services - - 2,006,031
Public works 1,107,901 4,811 6,491,436
Air quality - - 198,449
Municipal services - - 135,102
Housing - - 1,995,970
Unassigned - - 66,588
Total Fund Balances 1,107,901 4,811 11,267,914
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $ 1,152,577 $ 33,599 $ 11,686,887 Capital Projects Funds
City of Lawndale
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds
For the Fiscal Year Ended June 30, 2021
93 Gas Tax Air Quality
Proposition A
Local Transit
Assistance
Narcotics
Forfeiture
State COPS
Grant
Revenues
Intergovernmental $ 716,510 $ 42,828 $ 672,736 $ - $ 156,727 Charges for services - - - - - Use of money and property 24 1,787 18,455 577 1,642 Miscellaneous - - - - - Total Revenues 716,534 44,615 691,191 577 158,369 Expenditures
Current:

General government - - - - - Public safety - - - - 122,100 Code enforcement and animal control - - - - - Housing - - - - - Recreation and community services - - 110,271 - - Public works 655,808 - - - - Capital outlay - - - - - Total Expenditures 655,808 - 110,271 - 122,100 Excess (Deficiency) of Revenues
Over (Under) Expenditures 60,726 44,615 580,920 577 36,269 Other Financing Sources (Uses)
Transfers in - - - - - Total Other Financing Sources (Uses) - - - - - Net Change in Fund Balances 60,726 44,615 580,920 577 36,269 Fund Balances (deficit)
Beginning of year, as restated (70,686) 153,834 1,385,579 54,958 102,819 Fund Balances, End of Year $ (9,960) $ 198,449 $ 1,966,499 $ 55,535 $ 139,088 Special Revenue Funds
(Continued)
94 CA Law
Enforcement
Equipment
Used Oil
Recycling
Grant
Lawndale Cable
Usage
Corporation
Department of
Conservation
Grant
Park
Development
Measure M
Local Return
$ - $ 5,000 $ - $ 8,384 $ 1,000 $ 474,842
- - 39,222 - 1,200 -
- - 1,185 - 82 15,680
- - - - - -
- 5,000 40,407 8,384 2,282 490,522
5,000 - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - 8,906 - -
- 9,131 - - - 354,334
- - - - - -
5,000 9,131 - 8,906 - 354,334
(5,000) (4,131) 40,407 (522) 2,282 136,188
- - - - - -
- - - - - -
(5,000) (4,131) 40,407 (522) 2,282 136,188
15,468 7,283 94,695 26,273 7,441 1,243,386
$ 10,468 $ 3,152 $ 135,102 $ 25,751 $ 9,723 $ 1,379,574 Special Revenue Funds
City of Lawndale
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds
For the Fiscal Year Ended June 30, 2021
95 LA County
Parks
Maintenance
Grant SB1 RMRA
Groundwater
Sustainability
(AB 939)
Disability
Access
(AB 1379)
Measure W
Safe Clean
Water
Revenues
Intergovernmental $ 4,034 $ 608,046 $ 220,627 $ 10,269 $ 230,852 Charges for services - - - - -
Use of money and property 24 9,152 5,100 518 -
Miscellaneous - - 34,131 - -
Total Revenues 4,058 617,198 259,858 10,787 230,852
Expenditures
Current:

General government - - - - -
Public safety - - - - -
Code enforcement and animal control - - - - -
Housing - - - - -
Recreation and community services - - - - -
Public works - 646,722 81,606 - -
Capital outlay - - - - -
Total Expenditures - 646,722 81,606 - -
Excess (Deficiency) of Revenues
Over (Under) Expenditures 4,058 (29,524) 178,252 10,787 230,852 Other Financing Sources (Uses)
Transfers in - - - - -
Total Other Financing Sources (Uses) - - - - -
Net Change in Fund Balances 4,058 (29,524) 178,252 10,787 230,852 Fund Balances (deficit)
Beginning of year, as restated - 713,568 377,251 42,614 - Fund Balances, End of Year $ 4,058 $ 684,044 $ 555,503 $ 53,401 $ 230,852 Special Revenue Funds
(Continued)
96 Coronavirus
Relief Fund
Lawndale
Housing
Authority
TDA Article 3
(Metro)
Proposition C
Local Transit
Assistance
Community
Development
Block Grant Prop C25 Grant
$ 404,974 $ - $ 49,558 $ 558,010 $ 388,473 $ 574,161
- - - - - -
- 15,089 - 24,898 - -
- - - - - -
404,974 15,089 49,558 582,908 388,473 574,161
221,089 - - - - -
27,570 - - - - -
6,133 - - - - -
- 155,633 - - - -
4,173 - - - - -
- - 49,558 260,087 423,929 -
- - - 28,280 - 71,610
258,965 155,633 49,558 288,367 423,929 71,610
146,009 (140,544) - 294,541 (35,456) 502,551
- 251,581 - - - -
- 251,581 - - - -
146,009 111,037 - 294,541 (35,456) 502,551
(146,009) 1,884,933 (1,664) 2,177,657 204,703 (424,339) $ - $ 1,995,970 $ (1,664) $ 2,472,198 $ 169,247 $ 78,212 Special Revenue Funds Capital Projects Funds
City of Lawndale
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds
For the Fiscal Year Ended June 30, 2021
97 Measure R
Metro STPL
Exchange 2017
Total
Non-major
Governmental
Funds
Revenues
Intergovernmental $ 808,774 $ - $ 5,935,805
Charges for services - - 40,422
Use of money and property 13,468 2,500 110,181
Miscellaneous - - 34,131
Total Revenues 822,242 2,500 6,120,539
Expenditures
Current:

General government - - 226,089
Public safety - - 149,670
Code enforcement and animal control - - 6,133
Housing - - 155,633
Recreation and community services - - 123,350
Public works 358,433 22,457 2,862,065
Capital outlay 417,493 513,498 1,030,881
Total Expenditures 775,926 535,955 4,553,821
Excess (Deficiency) of Revenues
Over (Under) Expenditures 46,316 (533,455) 1,566,718
Other Financing Sources (Uses)
Transfers in - - 251,581
Total Other Financing Sources (Uses) - - 251,581
Net Change in Fund Balances 46,316 (533,455) 1,818,299
Fund Balances (deficit)
Beginning of year, as restated 1,061,585 538,266 9,449,615 Fund Balances, End of Year $ 1,107,901 $ 4,811 $ 11,267,914 Capital Projects Funds
City of Lawndale
Budgetary Comparison Schedule
Gas Tax
For the Fiscal Year Ended June 30, 2021
98 Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance (deficit), July 1 $ (70,686) $ (70,686) (70,686)$ $ - Resources (Inflows):

Intergovernmental 702,000 662,000 716,510 54,510
Use of money and property 50 50 24 (26)
Amounts Available for Appropriation 631,364 591,364 645,848 54,484 Charges to Appropriation (Outflows):

Public works 702,050 662,050 655,808 6,242
Total Charges to Appropriation 702,050 662,050 655,808 6,242 Budgetary Fund Balance (Deficit), June 30 $ (70,686) $ (70,686) $ (9,960) $ 60,726 City of Lawndale
Budgetary Comparison Schedule
Air Quality
For the Fiscal Year Ended June 30, 2021
99 Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 153,834$ 153,834$ 153,834$ $ - Resources (Inflows):

Intergovernmental 40,000 40,000 42,828 2,828
Use of money and property 1,125 1,125 1,787 662
Amounts Available for Appropriation 194,959 194,959 198,449 3,490 Charges to Appropriation (Outflows):

Capital outlay 150,000 60,000 - 60,000
Total Charges to Appropriation 150,000 60,000 - 60,000
Budgetary Fund Balance, June 30 $ 44,959 $ 134,959 $ 198,449 $ 63,490 City of Lawndale
Budgetary Comparison Schedule
Proposition A Local Transit Assistance
For the Fiscal Year Ended June 30, 2021
100
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 1,385,579 $ 1,385,579 $ 1,385,579 $ - Resources (Inflows):

Intergovernmental 634,280 634,280 672,736 38,456
Charges for services 26,000 26,000 - (26,000)
Use of money and property 6,000 6,000 18,455 12,455
Miscellaneous 32,000 32,000 - (32,000)
Amounts Available for Appropriation 2,083,859 2,083,859 2,076,770 (7,089) Charges to Appropriation (Outflows):

Recreation and community services 696,066 696,066 110,271 585,795 Public works 200,000 200,000 - 200,000
Total Charges to Appropriation 896,066 896,066 110,271 785,795 Budgetary Fund Balance, June 30 $ 1,187,793 $ 1,187,793 $ 1,966,499 $ 778,706 City of Lawndale
Budgetary Comparison Schedule
Narcotics Forfeiture
For the Fiscal Year Ended June 30, 2021
101
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 54,958 54,958$ 54,958$ $ - Resources (Inflows):

Use of money and property 815 815 577 (238)
Amounts Available for Appropriation 55,773 55,773 55,535 (238) Budgetary Fund Balance, June 30 $ 55,773 $ 55,773 $ 55,535 $ (238) City of Lawndale
Budgetary Comparison Schedule
State COPS Grant
For the Fiscal Year Ended June 30, 2021
102
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 102,819 102,819$ 102,819$ $ - Resources (Inflows):

Intergovernmental 140,000 140,000 156,727 16,727
Use of money and property 1,050 1,050 1,642 592
Amounts Available for Appropriation 243,869 243,869 261,188 17,319 Charges to Appropriation (Outflows):

Public safety 121,000 121,000 122,100 (1,100)
Total Charges to Appropriation 121,000 121,000 122,100 (1,100) Budgetary Fund Balance, June 30 $ 122,869 $ 122,869 $ 139,088 $ 16,219 City of Lawndale
Budgetary Comparison Schedule
CA Law Enforcement Equipment
For the Fiscal Year Ended June 30, 2021
103
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 15,468 15,468$ 15,468$ $ - Charges to Appropriation (Outflows):

General government 5,000 - 5,000 - Total Charges to Appropriation - 5,000 5,000 - Budgetary Fund Balance, June 30 $ 15,468 $ 10,468 $ 10,468 $ - City of Lawndale
Budgetary Comparison Schedule
Used Oil Recycling Grant
For the Fiscal Year Ended June 30, 2021
104
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 7,283$ 7,283$ 7,283$ $ - Resources (Inflows):

Intergovernmental 9,300 9,300 5,000 (4,300)
Use of money and property 540 540 - (540)
Amounts Available for Appropriation 17,123 17,123 12,283 (4,840) Charges to Appropriation (Outflows):

Public works 9,100 9,100 9,131 (31)
Total Charges to Appropriation 9,100 9,100 9,131 (31)
Budgetary Fund Balance, June 30 $ 8,023 $ 8,023 $ 3,152 $ (4,871) City of Lawndale
Budgetary Comparison Schedule
Lawndale Cable Usage Corporation
For the Fiscal Year Ended June 30, 2021
105
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 94,695 $ 94,695 $ 94,695 $ - Resources (Inflows):

Charges for services 40,000 40,000 39,222 (778)
Use of money and property 600 600 1,185 585
Miscellaneous 40 40 - (40)
Amounts Available for Appropriation 135,335 135,335 135,102 (233) Budgetary Fund Balance, June 30 $ 135,335 $ 135,335 $ 135,102 $ (233) City of Lawndale
Budgetary Comparison Schedule
Department of Conservation Grant
For the Fiscal Year Ended June 30, 2021
106
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 26,273$ 26,273$ 26,273$ $ - Resources (Inflows):

Intergovernmental 8,600 8,600 8,384 (216)
Amounts Available for Appropriation 34,873 34,873 34,657 (216) Charges to Appropriation (Outflows):

Recreation and community services 8,512 8,512 8,906 (394) Total Charges to Appropriation 8,512 8,512 8,906 (394)
Budgetary Fund Balance, June 30 $ 26,361 $ 26,361 $ 25,751 $ (610) City of Lawndale
Budgetary Comparison Schedule
Park Development
For the Fiscal Year Ended June 30, 2021
107
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance (deficit), July 1 7,441$ 7,441$ 7,441$ $ - Resources (Inflows):

Intergovernmental - 1,000 1,000 - Charges for services 500 500 1,200 700 Use of money and property 660 660 82 (578)
Amounts Available for Appropriation 8,601 9,601 9,723 122 Charges to Appropriation (Outflows):

Recreation and community services - 1,000 - 1,000
Total Charges to Appropriation - 1,000 - 1,000
Budgetary Fund Balance, June 30 $ 8,601 $ 8,601 $ 9,723 $ 1,122 City of Lawndale
Budgetary Comparison Schedule
Measure M Local Return
For the Fiscal Year Ended June 30, 2021
108
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 352,716 352,716$ $ 1,243,386 $ 890,670 Resources (Inflows):

Intergovernmental 447,200 447,200 474,842 27,642
Use of money and property 14,442 14,442 15,680 1,238
Amounts Available for Appropriation 814,358 814,358 1,733,908 919,550 Charges to Appropriation (Outflows):

Public works 718,612 - 354,334 364,278
Total Charges to Appropriation - 718,612 354,334 364,278 Budgetary Fund Balance, June 30 $ 814,358 $ 95,746 $1,379,574 $ 1,283,828 City of Lawndale
Budgetary Comparison Schedule
LA County Park Maintenance Grant
For the Fiscal Year Ended June 30, 2021
109
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1, as restated -$ -$ -$ $ - Resources (Inflows):

Intergovernmental 3,951 3,951 4,034 83
Use of money and property - - 24 24
Amounts Available for Appropriation 3,951 3,951 4,058 107 Charges to Appropriation (Outflows):

Recreation and community services 3,951 3,951 - 3,951
Total Charges to Appropriation 3,951 3,951 - 3,951
Budgetary Fund Balance, June 30 $ - $ - $ 4,058 $ 4,058 City of Lawndale
Budgetary Comparison Schedule
SB1 RMRA
For the Fiscal Year Ended June 30, 2021
110
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1, as restated 713,568$ 713,568$ 713,568$ $ - Resources (Inflows):

Intergovernmental 437,561 437,561 608,046 170,485
Use of money and property 9,000 9,000 9,152 152
Amounts Available for Appropriation 1,160,129 1,160,129 1,330,766 170,637 Charges to Appropriation (Outflows):

Public works 808,270 1,341,270 646,722 694,548
Total Charges to Appropriation 808,270 1,341,270 646,722 694,548 Budgetary Fund Balance, June 30 $ 351,859 $ (181,141) $ 684,044 $ 865,185 City of Lawndale
Budgetary Comparison Schedule
Groundwater Sustainability (AB 939)
For the Fiscal Year Ended June 30, 2021
111
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 377,251$ 377,251$ 377,251$ $ - Resources (Inflows):

Intergovernmental 182,000 182,000 220,627 38,627
Use of money and property 4,590 4,590 5,100 510
Miscellaneous - - 34,131 34,131
Amounts Available for Appropriation 563,841 563,841 637,109 73,268 Charges to Appropriation (Outflows):

Public works 44,927 89,216 81,606 7,610
Total Charges to Appropriation 44,927 89,216 81,606 7,610 Budgetary Fund Balance, June 30 $ 518,914 $ 474,625 $ 555,503 $ 80,878 City of Lawndale
Budgetary Comparison Schedule
Disability Access (AB 1379)
For the Fiscal Year Ended June 30, 2021
112
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 42,614$ 42,614$ 42,614$ $ - Resources (Inflows):

Intergovernmental 8,000 8,000 10,269 2,269
Use of money and property - - 518 518
Amounts Available for Appropriation 50,614 50,614 53,401 2,787 Budgetary Fund Balance, June 30 $ 50,614 $ 50,614 $ 53,401 $ 2,787 City of Lawndale
Budgetary Comparison Schedule
Measure W Safe Clean Water
For the Fiscal Year Ended June 30, 2021
113
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 -$ -$ -$ $ - Resources (Inflows):

Intergovernmental 230,000 230,000 230,852 852
Amounts Available for Appropriation 230,000 230,000 230,852 852 Charges to Appropriation (Outflows):

General government 230,000 230,000 - 230,000
Total Charges to Appropriation 230,000 230,000 - 230,000 Budgetary Fund Balance, June 30 $ - $ - $ 230,852 $ 230,852 City of Lawndale
Budgetary Comparison Schedule
Coronavirus Relief Fund
For the Fiscal Year Ended June 30, 2021
114
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance (deficit), July 1 $ (146,009) $ (146,009) (146,009)$ $ - Resources (Inflows):

Intergovernmental - 405,000 404,974 (26)
Amounts Available for Appropriation (146,009) 258,991 258,965 (26) Charges to Appropriation (Outflows):

General government - 198,991 221,089 (22,098)
Public safety - - 27,570 (27,570)
Code enforcement and animal control - - 6,133 (6,133)
Recreation and community services - - 4,173 (4,173)
Public works - 60,000 - 60,000
Total Charges to Appropriation - 258,991 258,965 26
Budgetary Fund Balance, June 30 $ (146,009) $ - $ - $ - City of Lawndale
Budgetary Comparison Schedule
Lawndale Housing Authority
For the Fiscal Year Ended June 30, 2021
115
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance (deficit), July 1 $ 1,884,933 $ 1,884,933 $ 1,884,933 $ - Resources (Inflows):

Use of money and property 24,600 24,600 15,089 (9,511)
Transfers in 251,581 251,581 251,581 - Amounts Available for Appropriation 2,161,114 2,161,114 2,151,603 (9,511) Charges to Appropriation (Outflows):

Housing 166,423 166,423 155,633 10,790
Total Charges to Appropriation 166,423 166,423 155,633 10,790 Budgetary Fund Balance (deficit), June 30 $1,994,691 $1,994,691 $1,995,970 $ 1,279 City of Lawndale
Budgetary Comparison Schedule
TDA Article 3 Metro
For the Fiscal Year Ended June 30, 2021
116
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance (deficit), July 1 $ (1,664) $ (1,664) (1,664)$ $ - Resources (Inflows):

Intergovernmental 49,558 49,558 49,558 - Amounts Available for Appropriation 47,894 47,894 47,894 - Charges to Appropriation (Outflows):

Public works 49,558 49,558 49,558 - Total Charges to Appropriation 49,558 49,558 49,558 - Budgetary Fund Balance (deficit), June 30 $ (1,664) $ (1,664) $ (1,664) $ - City of Lawndale
Budgetary Comparison Schedule
Proposition C Local Transit Assistance
For the Fiscal Year Ended June 30, 2021
117
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 2,177,657 $ 2,177,657 $ 2,177,657 $ - Resources (Inflows):

Intergovernmental 526,118 526,118 558,010 31,892
Use of money and property 30,000 30,000 24,898 (5,102)
Amounts Available for Appropriation 2,733,775 2,733,775 2,760,565 26,790 Charges to Appropriation (Outflows):

Public works 624,314 524,610 260,087 264,523
Capital outlay 1,574,670 1,634,374 28,280 1,606,094
Total Charges to Appropriation 2,198,984 2,158,984 288,367 1,870,617 Budgetary Fund Balance, June 30 $ 534,791 $ 574,791 $ 2,472,198 $ 1,897,407 City of Lawndale
Budgetary Comparison Schedule
Community Development Block Grant
For the Fiscal Year Ended June 30, 2021
118
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance (deficit), July 1 $ 204,703 $ 204,703 $ 204,703 $ - Resources (Inflows):

Intergovernmental 449,286 766,120 388,473 (377,647)
Amounts Available for Appropriation 653,989 970,823 593,176 (377,647) Charges to Appropriation (Outflows):

Public works 520,570 783,325 423,929 359,396
Total Charges to Appropriation 520,570 783,325 423,929 359,396 Budgetary Fund Balance, June 30 $ 133,419 $ 187,498 $ 169,247 $ (18,251) City of Lawndale
Budgetary Comparison Schedule
Prop C25 Grant
For the Fiscal Year Ended June 30, 2021
119
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance (deficit), July 1 $ (424,339) $ (424,339) $ (424,339) $ - Resources (Inflows):

Intergovernmental 1,852,424 500,852 574,161 73,309
Amounts Available for Appropriation 1,428,085 76,513 149,822 73,309 Charges to Appropriation (Outflows):

Capital outlay 500,852 500,852 71,610 429,242
Total Charges to Appropriation 500,852 500,852 71,610 429,242 Budgetary Fund Balance, June 30 $ 927,233 $ (424,339) $ 78,212 $ 502,551 City of Lawndale
Budgetary Comparison Schedule
Measure R
For the Fiscal Year Ended June 30, 2021
120
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 1,061,585 $ 1,061,585 $ 1,061,585 $ - Resources (Inflows):

Intergovernmental 887,269 887,269 808,774 (78,495)
Use of money and property 13,480 13,480 13,468 (12)
Amounts Available for Appropriation 1,962,334 1,962,334 1,883,827 (78,507) Charges to Appropriation (Outflows):

Public works 665,547 665,547 358,433 307,114
Capital outlay 452,855 452,855 417,493 35,362
Total Charges to Appropriation 1,118,402 1,118,402 775,926 342,476 Budgetary Fund Balance, June 30 $ 843,932 $ 843,932 $ 1,107,901 $ 263,969 City of Lawndale
Budgetary Comparison Schedule
Metro STPL Exchange 2017
For the Fiscal Year Ended June 30, 2021
121
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 538,266 $ 538,266 $ 538,266 $ - Resources (Inflows):

Intergovernmental 531,871 531,871 - (531,871)
Use of money and property 8,374 8,374 2,500 (5,874)
Amounts Available for Appropriation 1,078,511 1,078,511 540,766 (537,745) Charges to Appropriation (Outflows):

Public works - 22,457 - (22,457)
Capital outlay 547,671 547,671 513,498 34,173
Total Charges to Appropriation 547,671 547,671 535,955 11,716 Budgetary Fund Balance, June 30 $ 530,840 $ 530,840 $ 4,811 $ (526,029)

STATISTICAL SECTION
This part of the City of Lawndale’s Comprehensive Annual Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the government’s overall financial health.

Contents Page
Financial Trends 122
These schedules contain trend information to help the reader understand how the government’s financial performance and wellbeing have changed over time.

Revenue Capacity 126
These schedules contain trend information to help the reader assess the government’s most significant revenue source, property tax.

Debt Capacity 131
These schedules present information to help the reader assess the affordability of the government’s current levels of outstanding debt and the government’s ability to issue additional debt in the future.

Demographic and Economic Information 132
These schedules offer demographic and economic indicators to help the reader understand the environment within which the government’s financial activities take place.

Operating Information 143
These schedules contain service and infrastructure data to help the reader understand how the information in the government’s financial report relates to the services the government provides and the activities it performs.

Sources: Unless otherwise notes, the information in these schedules is derived from the Comprehensive Annual Financial Reports for the relevant year.

THIS PAGE INTENTIONALLY LEFT BLANK
City of Lawndale
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting
122
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
Governmental Activities:

Net investment in capital assets $ 43,925,644 $ 43,387,317 $ 42,993,707 $ 44,308,151 $ 45,232,399 $ 45,929,475 $ 41,632,026 $ 41,303,660 $ 39,758,551 $ 40,567,520 Restricted 17,280,809 16,315,035 14,946,011 13,516,348 13,878,261 12,998,959 25,108,842 5,971,750 5,131,368 4,180,641 Unrestricted 18,105,367 14,361,429 14,601,717 12,280,467 14,736,240 16,089,931 (1,881,516) 23,838,865 30,431,748 36,617,212 Total governmental activities $ 79,311,820 $ 74,063,781 $ 72,541,435 $ 70,104,966 $ 73,846,900 $ 75,018,365 $ 64,859,352 $ 71,114,275 $ 75,321,667 $ 81,365,373 Business-type Activities:

Unrestricted $ 392,659 - $ $ - $ - $ - $ - $ - $ - $ - $ - Total business-type activities $ 392,659 - $ $ - $ - $ - $ - $ - $ - $ - $ - Primary government:

Net investment in capital assets $ 43,925,644 $ 43,387,317 $ 42,993,707 $ 44,308,151 $ 45,232,399 $ 45,929,475 $ 41,632,026 $ 41,303,660 $ 39,758,551 $ 40,567,520 Restricted 17,280,809 16,315,035 14,946,011 13,516,348 13,878,261 12,998,959 25,108,842 5,971,750 5,131,368 4,180,641 Unrestricted 18,105,367 14,754,088 14,601,717 12,280,467 14,736,240 16,089,931 (1,881,516) 23,838,865 30,431,748 36,617,212 $ 79,311,820 $ 74,456,440 $ 72,541,435 $ 70,104,966 $ 73,846,900 $ 75,018,365 $ 64,859,352 $ 71,114,275 $ 75,321,667 $ 81,365,373 Source: City of Lawndale, Finance Department
City of Lawndale
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
123
Fiscal Year 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 Expenses: Governmental activities: General government $ 5,066,050 $ 4,191,071 $ 4,074,964 $ 4,051,141 $ 3,974,826 $ 3,375,499 $ 3,494,495 $ 3,644,909 $ 3,336,790 $ 3,277,266 Public safety 6,290,957 6,202,978 5,533,190 5,637,010 5,481,018 5,166,327 4,984,084 4,767,707 4,744,660 4,567,440 Code enforcement and animal control 1,333,971 1,335,008 1,078,957 1,026,693 1,161,697 1,090,955 5,109,539 4,676,472 5,446,000 5,086,433 Housing 1,662,910 695,428 1,478,685 1,344,843 2,342,003 1,808,464 1,869,744 1,378,366 1,511,370 3,568,319 Recreation & community services 577,013 2,360,100 1,943,391 1,891,344 2,520,125 1,934,189 1,839,218 1,938,500 1,840,035 1,712,014 Public works 4,627,877 5,168,775 4,400,419 5,647,091 2,845,551 3,821,975 - - - - Interest on long-term debt 16,309 17,944 19,318 20,624 22,083 23,516 24,565 25,914 13,277 447,168 Total governmental activities expenses 19,575,087 19,971,304 18,528,924 19,618,746 18,347,303 17,220,925 17,321,645 16,431,868 16,892,132 18,658,640 Business-type activities:

Community Development 1,030,325 - Total business-type activities expenses 1,030,325 - - - - - - - - - Total primary government expenses $ 19,575,087 $ 21,001,629 $ 18,528,924 $ 19,618,746 $ 18,347,303 $ 17,220,925 $ 17,321,645 $ 16,431,868 $ 16,892,132 $ 18,658,640 Program revenues: Governmental activities: Charges for services:

General government $ 1,971,238 $ 1,529,005 $ 1,696,097 $ 1,555,791 $ 1,516,849 $ 1,446,541 $ 1,465,754 $ 536,706 $ 522,334 $ 593,495 Public safety - - - - - - 12,200 597,372 553,723 582,465 Code enforcement and animal control - - 205,715 200,452 344,716 417,392 324,518 277,134 383,194 240,298 Other activities 1,503,744 112,503 961,062 630,519 399,385 334,282 2,164,047 335,099 281,859 244,957 Operating contributions & grants 1,005,420 495,664 727,699 192,529 289,943 461,251 1,155,002 143,560 139,215 64,825 Capital contributions & grants 4,463,748 5,304,261 3,410,974 3,548,855 3,036,855 7,526,062 2,317,196 1,777,527 451,796 1,968,800 Total governmental activities program revenues 8,944,150 7,441,433 7,001,547 6,128,146 5,587,748 10,185,528 7,438,717 3,667,398 2,332,121 3,694,840 Business-type activities:

Charges for services
Community development - 742,704 - - - - - - - - Total business-type activities program revenues - 742,704 - - - - - - - - Total primary government program revenues $ 8,944,150 $ 8,184,137 $ 7,001,547 $ 6,128,146 $ 5,587,748 $ 10,185,528 $ 7,438,717 $ 3,667,398 $ 2,332,121 $ 3,694,840 Net revenues (expenses): Governmental activities (10,630,937) (12,529,871) (11,527,377) (13,490,600) (12,759,555) (7,035,397) (9,882,928) (12,764,470) (14,560,011) (14,963,800) Business-type activities - (287,621) - - - - - - - - Total primary government net (expenses)/revenues $ (10,630,937) $ (12,817,492) $ (11,527,377) $ (13,490,600) $ (12,759,555) $ (7,035,397) $ (9,882,928) $ (12,764,470) $ (14,560,011) $ (14,963,800) City of Lawndale
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting (Continued)
124
Fiscal Year 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 General revenues and other changes in net position: Governmental activities: Taxes: Property tax, levied for general purpose $ 1,673,195 $ 1,526,604 $ 1,625,047 $ 1,415,740 $ 1,393,299 $ 1,264,229 $ 1,257,326 $ 1,207,732 $ 2,123,835 $ 890,896 Property tax, Redevelopment tax increment - - - - - - - - 1,972,109 - Property taxes in lieu of vehicle license fees 3,947,793 3,787,758 3,615,968 3,425,585 3,259,248 3,124,005 2,967,075 2,853,843 2,797,818 2,772,165 Transient occupancy tax 712,164 567,341 704,869 692,323 661,089 634,358 580,084 507,149 490,448 452,648 Sales tax 6,072,989 5,588,676 3,705,062 2,836,285 3,011,518 3,043,063 2,621,117 4,937,756 4,632,826 4,673,172 Franchise tax 856,705 801,028 762,816 746,337 719,734 760,317 600,595 577,720 494,445 427,277 Utility user tax 1,736,358 1,677,016 1,719,735 1,851,200 1,900,519 1,890,350 2,000,513 2,060,637 2,048,093 2,191,320 Investment income 337,610 587,119 - - - - 110,233 99,903 116,388 135,534 Extraordinary items - 1,414,559 - - 5,042,253 - - - - - Other general revenues 149,503 144,743 530,592 619,487 642,683 765,103 708,890 1,088,816 652,451 375,510 Transfers - (680,280) Total governmental activities 15,486,317 14,000,005 14,078,648 11,586,957 11,588,090 16,523,678 10,845,833 13,333,556 13,356,304 13,890,631 Business-type activities: Transfers - 680,280 - - - - - - - - Total business-type activities program revenues - 680,280 - - - - - - - - Total primary government 15,486,317 14,680,285 14,078,648 11,586,957 11,588,090 16,523,678 10,845,833 13,333,556 13,356,304 13,890,631 Change in Net Position: Governmental activities 4,855,380 1,470,134 2,551,271 (1,903,643) (1,171,465) 9,488,281 962,905 569,086 (1,203,707) (1,073,169) Business-type activities - 392,659 - - - - - - - - Total primary government change in net position $ 4,855,380 $ 1,862,793 $ 2,551,271 $ (1,903,643) $ (1,171,465) $ 9,488,281 $ 962,905 $ 569,086 $ (1,203,707) $ (1,073,169) City of Lawndale
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
125
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011
General fund:

Nonspendable $ 5,344,922 $ 6,374,027 $ 7,702,065 $ 8,600,651 $ 9,452,893 $ 9,510,896 $ 11,504,529 $ 927,304 $ 3,032,263 $ 6,904,925 $ 7,303,787 Restricted - - 10,613 10,241 9,769 9,191 8,463 7,718 7,374 7,016 6,746 Committed - 1,400,000 - - - 2,810,000 - 3,013,384 3,013,240 3,043,980 4,012,785 Assigned - - - - - 245,962 - 153,496 222,555 195,104 391,868 Unassigned 16,649,998 10,911,737 7,520,502 6,143,591 5,763,383 6,929,628 2,857,327 14,214,377 15,426,052 11,221,961 11,560,364 Total general fund $ 21,994,920 $ 17,285,764 $ 16,633,180 $ 14,754,483 $ 15,226,045 $ 16,449,715 $ 17,426,281 $ 18,316,279 $ 21,701,484 $ 21,372,986 $ 23,275,550 All other governmental funds:

Special revenue funds
Nonspendable $ - $ - $ - $ - $ - $ - $ 487,083 - $ $ - $ - $ - Restricted 7,447,169 12,332,824 11,421,078 10,366,294 9,910,179 10,006,156 4,304,127 5,259,292 4,912,033 8,629,477 9,014,063 Committed - - - - - - 7,495,609 - 10,624,274 12,319,580 12,316,681 Assigned - - - - - - - - - - - Unassigned (9,960) (216,695) (524,855) - (490,001) (432,709) (701,781) (553,245) (518,309) (738,453) (991,389) Capital project funds
Restricted 3,749,346 3,443,945 3,514,320 3,139,813 3,958,313 2,982,818 - - - - - Unassigned 76,548 (426,003) (303,819) (565,264) (539,765) (1,280,168) - - - (14,042,465) - Debt service funds - - - - - - - - - Restricted 4,811 538,266 - - - - - - - 12,139,286 - Total all other governmental funds $ 11,267,914 $ 15,672,337 $ 14,631,579 $ 12,415,988 $ 12,838,726 $ 11,276,097 $ 3,602,346 $ 12,688,739 $ 15,017,998 $ 20,210,604 $ 18,436,176 
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 


    
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
  












 
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 


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

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 
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 
 
 

 
 
 




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








 
 




  
  

 
          
                                                       
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




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  
                                                                                                                                                     



                                                                                                   
 
           
    
                                                                                                                                                                                                                                                                            
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
                                                                                                                                                 
         
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   
 
 
         
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




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   
 

                                                                                 
 
   
 
 
         
                                                                                               

         City of Lawndale
Principal Employers
Current Year and Ten Years Ago
138
2021 2012
Number of Percent of Total Number of Percent of Total
Employer Employees City Employment Employees City Employment Lawndale Elementary School District* 505 3.08%
Centinela Valley Union High School District* 463 2.82%
VCA Advanced Veterinary Care Center** 80 0.49% 60 2.05% El Super Grocery Store #43** 72 0.44% 70 2.39%
McDonald's** 70 0.43% 60 2.05%
City of Lawndale 59 0.36% 100 3.42%
Target Store 58 0.35%
Options for Life Inc.** 49 0.30%
Carbro Corporation 36 0.22% 50 1.71%
Smart & Final Extra** 32 0.20% 46 1.57%
American Drilling Co 86 2.94%
Property Prep Inc. 51 1.74%
Big Saver Foods 47 1.61%
WEMS Inc. 40 1.37%
Source: Avenu Insights & Analytics
Source: 2012 previously published ACFR
Results based on direct correspondence with city's local businesses. *Includes classified, certificated and admin for school's in the City of Lawndale **Includes FTE & PTE
(1) Total City Labor Force provided by EDD Labor Force Data.

SALES VALUE HISTORY

THE CITY OF LAWNDALE
Single Family Residential Full Value Sales (01/01/2019 - 12/31/2021) Year Full Value Sales Average Price Median Price Median % Change 2019 117 $544,624 $555,000
2020 117 $566,103 $550,000 -0.90%
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
20192020
Median Price Avg Price
Year
Sales Price
*Sales not included in the analysis are quitclaim deeds, trust transfers, timeshares, and partial sales.

This report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of HdL, Coren & Cone
Data Source: Los Angeles County Recorder Prepared On 2/7/2022 By MV

CITY OF LAWNDALE
FOR FISCAL YEAR 2020-21
TOP 25 SALES TAX PRODUCERS
Business Name Business Category
Arco Service Stations
Arco Service Stations
Arco AM PM Service Stations
Arco AM PM Service Stations
Austra Motors Used Automotive Dealers
Bossa Nova Brazilian Cuisine Casual Dining
Capitol Wholesale Electric Supply Plumbing/Electrical Supplies Chevron Service Stations
Cooks Lumber & Hardware Building Materials
CVS Pharmacy Drug Stores
Dunn Edwards Paint Paint/Glass/Wallpaper
El Super Grocery Stores
Guitar Center Music Stores
Hawthorne Motors Used Automotive Dealers
McDonalds Quick-Service Restaurants
Panda Express Fast-Casual Restaurants
RJ's Construction & Landscaping Supplies Contractors
Sherwin Williams Paint/Glass/Wallpaper
Shilpark Paint Paint/Glass/Wallpaper
Smart & Final Grocery Stores
Target Discount Dept Stores
United Oil Service Stations
USA Gasoline Service Stations
VIP Auto House Used Automotive Dealers
Westwood Building Materials Building Materials
* Firms Listed Alphabetically
Period: July 2020 Thru March 2021
Sources: State Board of Equalization, California Department of Taxes and Fees Administration, State Controller's Office, The HdL Companies
Percent of Fiscal Year Total Paid By Top 25 Accounts = 60.73% Printed 07/28/2021

CITY OF LAWNDALE
FOR FISCAL YEAR 2011-12
TOP 25 SALES TAX PRODUCERS
Business Name Business Category
99 Cents Only Variety Stores
Anthonys Ready Mix Contractors
Arco Service Stations
Arco AM PM Service Stations
Arco AM PM Service Stations
Chevron Service Stations
Cooks Lumber & Hardware Building Materials
CVS Pharmacy Drug Stores
Dunn Edwards Paint Paint/Glass/Wallpaper
El Pollo Inka Casual Dining
Guitar Center Music Stores
Hawthorne Motors Used Automotive Dealers
McDonalds Quick-Service Restaurants
Pep Boys Automotive Supply Stores
Rapid Gas Service Stations
Repossess Auto Used Automotive Dealers
Shell Service Stations
Sherwin Williams Paint/Glass/Wallpaper
Shilpark Paint Paint/Glass/Wallpaper
Smart & Final Grocery Stores
Thrifty Gas Service Stations
Valu Plus Grocery Stores
Video & Audio Center Electronics/Appliance Stores
Vio's Auto Sales Used Automotive Dealers
Westwood Building Materials Building Materials
* Firms Listed Alphabetically
Period: July 2011 Thru June 2012
Sources: State Board of Equalization, California Department of Taxes and Fees Administration, State Controller's Office, The HdL Companies
Percent of Fiscal Year Total Paid By Top 25 Accounts = 61.40% Printed 07/28/2021
City of Lawndale
Taxable Sales by Category
Last Ten Calendar Years
(in thousands of dollars)
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Adjusted for Economic Data
Apparel Stores $ 3,444 $ 3,483 $ 2,989 $ 2,964 $ 3,132 $ 3,514 $ 3,770 $ 3,463 $ 3,591 $ 3,954 Food Stores 9,254 9,055 8,775 8,452 8,424 8,535 8,771 7,686 7,052 7,464 Eating and Drinking Places 31,156 32,185 31,274 35,618 39,436 42,042 44,598 46,300 51,893 44,432 Building Materials 32,823 32,585 37,516 41,597 42,282 44,893 46,855 51,035 49,312 49,173 Auto Dealers and Supplies 22,938 26,050 26,300 27,550 33,124 31,073 26,626 23,189 32,720 26,332 Service Stations 72,123 73,274 70,720 67,765 61,863 50,592 56,714 64,356 66,983 38,124 Other Retail Stores 32,769 33,688 32,760 35,981 38,303 41,706 49,880 51,353 40,552 41,292 All Other Outlets 42,015 43,787 47,172 50,287 57,044 59,441 64,037 64,454 76,126 92,321 Total $ 246,524 $ 254,107 $ 257,505 $ 270,215 $ 283,608 $ 281,796 $ 301,252 $ 311,837 $ 328,227 $ 303,091 Sources: State Board of Equalization, California Department of Taxes and Fees Administration, State Controller's Office, The HdL Companies Note: Due to confidentiality issues, the names of the ten largest revenue payers are not available. The categories presented are intended to provide alternative information regarding the sources of the City's revenue.

City of Lawndale
Full-Time Equivalent City Employees by Function
Last Ten Fiscal Years
143
Function 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 General government 26 39 39 39 39 39 38 38 38 38 41
Public safety 16 15 16 16 16 16 15 15 15 12 13
Community development 4 4 4 4 5 5 6 6 6 6 7
Culture and leisure 13 40 40 40 40 40 40 40 40 44 44
Total 59 98 99 99 100 100 99 99 99 100 105
Source: City of Lawndale, Finance Department
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19 DATE:

TO:

FROM:

SUBJECT:

CITY OF LAWNDALE
14717 BURIN AVENUE, LAWNDALE, CALIFORNIA 90260
PHONE (310) 973-3200 + www.lawndalecity.org
March 7, 2022
Honorable Mayor and City Council _()/
Cynthia Rodriguez, Administrative Assistant II \j"
The City Council will conduct a closed session, pursuant to Government Code sections 54956.9(d)(1) for the matter entitled Arcadia, et al. v. So. Cal. Edison Corp., Santa Barbara Superior Court Case No. 20 CV 02026 No public documents were forwarded to the City Clerk Depaitment for this item. 20