Agenda packet — Lawndale City Council, March 4, 2024 (part 1 of 2)

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

AGENDA OF THE

LAWNDALE CITY COUNCIL REGULAR MEETING
Monday, March 4, 2024 - 6:30 p.m.

Lawndale City Hall Council Chamber
14717 Burin Avenue
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. 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 and Frontier Channel 3.

Copies of this Agenda packet may be obtained prior to the meeting inside 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
a. Los Angeles County Sheriff’s Department Update
b. Los Angeles County Fire Department Update
D. PRESENTATION

1. Southern California Edison Presentation
Southern California Edison Presentation by Diane Forte, Government Relations Manager; Yosief Gebregiorgis, Senior Engineer & Distribution Engineering; Victor M.

Lopez Beltran, Field Engineer; and Luis Lara, Outage Communication.

E. ORAL COMMUNICATIONS - ITEMS NOT ON THE AGENDA (Public Comments) F. COMMENTS FROM COUNCIL
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 the speaker’s name is correctly recorded in the meeting minutes and, where appropriate, to provide contact information for staff follow-up.

Agenda
City Council Regular Meeting
March 4, 2024

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G. CONSENT CALENDAR
Items 2 through 7 will be considered and acted upon under one motion unless a City Councilmember removes individual items for further City Council consideration or explanation.

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. Accounts Payable Register
Recommendation: that the City Council adopt Resolution No. CC-2402-056 authorizing the payment of certain claims and demands in the amount of $1,120,181.99.

4. Minutes of the Lawndale City Council Regular Meeting, February 5, 2024 Recommendation: that the City Council approve the minutes.

5. Second Reading Ordinance No. 1205-24 to amend Chapter 17.48.056 to Title 17 of the Lawndale Municipal Code pertaining to Accessory Dwelling Units Recommendation: that the City Council read by title only, waive further reading, and adopt Ordinance No. 1205-24 to amend ADUs to comply with recent changes in State law.

6. Consideration of Claims for Damage against the City
Recommendation: that the City Council reject the claim filed by Law Offices of Javaheri & Yahoudai on behalf of Oscar Javier Roldan and instruct staff to process the appropriate correspondence to the claimant.

7. Request for approval of First Amendment to Contract Service Agreement with Transtech Engineers, Inc. for Professional City Engineering and Public Works Oversight Services
Recommendation: that the City Council a) approve the first amendment to the contract services agreement with Transtech Engineers, Inc. for Professional City Engineering and Public Works Oversight Services in a maximum contract sum not to exceed $161,590; and b) authorize the Director of Finance/City Treasurer to transfer salary savings for the Director of Public Works/City Engineer to the contract services line item in the Public Works Department budget.

H. ADMINISTRATION

8. Adoption and approval of 1) Memorandum of Understanding between the City of Lawndale and the American Federation of the State, County and Municipal Employees (AFSCME), Council 36, Local 1895 Agreement and 2) Second Amendment to the Citywide Pay Schedule for Fiscal Year 2023-2024 Recommendation: that the City Council 1) Adopt Resolution No. CC-2403-057, approving the 2023-2025 Memorandum of Understanding between the City of Lawndale and American Federation of State, County and Municipal Employees, Local 1895, Council 36; 2) Authorize the Director of Finance/City Treasurer to complete a budget transfer from the General Fund and ARPA Fund to the appropriate various line items noted and approve budget amendment of $371,450; and 3) Adopt an amendment to the Resolution No. CC-2403-058, approving the 2023-2024 City-wide Salary and Pay Schedule.

Agenda
City Council Regular Meeting
March 4, 2024

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9. Approval to Dispose of One Vehicle for the Public Works Department Recommendation: that the City Council approve the sale of the 2007 Chevrolet HD3500 Dump Truck through the City's standard public auction process facilitated by Ken Porter Auctions in Carson, California.

10. Annual Comprehensive Financial Report (ACFR) for the Year Ended June 30, 2023 Recommendation: that the City Council receives and files the Annual Comprehensive Financial Report for the Year Ended June 30, 2023

11. Mid-Year Budget Update for Fiscal Year 2023-2024
Recommendation: that the City Council approve all recommended budget amendments noted in the Mid-Year Update for FY 2023-2024.

12. Request to have Mayor sign Certifications and Assurances form as required by the U.S. Department of Justice to receive Edward Byrne Memorial Justice Assistance Grant ("JAG") award.

Recommendation: that the City Council authorize the Mayor to sign the Certifications and Assurances form as required by the U.S. Department of Justice.

13. Recommendation to Expand Contract with Southwest Patrol to Implement Seven Day Coverage by Armed Security Guards
Recommendation: that the City Council select one of the following options: Option 1.) Approve funding to expand the contract with Southwest Patrol for additional security coverage for one year of continuous armed services and approve the budget amendment for $195,000 in account 285-300-530.100; or Option 2) Approve funding to expand the contract with Southwest Patrol for additional security coverage for the remainder of fiscal year 23/24 in the amount of $49,000 and then reassess the effectiveness of the daytime guard at the end of fiscal year 23/24; or Option 3) Provide direction for a different option with recommendations for the number of hours and days they would like to provide armed protection services.

14. Amendment to California State 2018 Parks Bond Act Per Capita Grant Program Recommendation: that the City Council 1.) Approve the attached 2018 Parks Bond Act Per Capita Grant Program Agreements C9801318 in the amount of $177,952.00 and C9802118 in the amount of $20,435.00 for a total amount of $198,387.00 between the City of Lawndale and the California Natural Resources Agency; and 2.) Authorize the City Manager to sign both agreements.

15. Approve First Amendment to Street Sweeping Services Agreement Recommendation: that the City Council 1.) Approve the First Amendment to the street sweeping services agreement to require the Contractor to provide for the legal disposal of all street sweepings at an annual cost of $39,400 for the period of January 1, 2024 through December 31, 2025; and 2.) Approve the name change to SCA of CA, LLC due to a Change of Control.

Agenda
City Council Regular Meeting
March 4, 2024

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16. Award of Construction Contract for the Parks, Civic Center, and Sheriff Station Parking Lot Rehabilitation Project
Recommendation: that the City Council 1.) Award the construction contract to Onyx Paving Company, Inc., in the amount of $486,486.00 for the Parks, Civic Center, and Sheriff Station Parking Lot Rehabilitation Project; and 2.) Approve the construction contingency of $73,000.00 for the Parks, Civic Center, and Sheriff Station Parking Lot Rehabilitation Project; and 3.) Approve the budget amendment for $559,486 in account 285-310-700.298.

17. Award One-Year On-Call Civil Engineering Services Contract Recommendation: that the City Council award an On-Call Civil Engineering Services agreement to Transtech Engineers, Inc., SA Associates, Onward Engineering, LAE Associates, Inc., and Willdan for a term of one-year, with an option to extend up to four one-year extensions.

I. CITY MANAGER REPORT
J. ITEMS FROM CITY COUNCILMEMBERS

18. Mayor/City Councilmembers Report of Attendance at Meetings and/or Events K. ADJOURNMENT
The next regularly scheduled meeting of the City Council will be held at 6:30 p.m. on Monday, March 18, 2024, 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 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 accommodation 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 March 4, 2024, was posted not less than 72 hours prior to the meeting.
/s/ Yvette Hall
Yvette Hall, Assistant City Clerk
Presentation to City of Lawndale
March 4, 2024
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• Southern California Edison (SCE) is an
Edison International company
• One of the nation’s largest electric
utilities
• More than 130 years of history • Headquartered in Rosemead, California • Regulated by the California Public Utilities Commission (CPUC) and the
Federal Energy Regulatory Commission
(FERC)
• 50,000 square miles of SCE service area
across Central, Coastal, and Southern
California
• 15 million residents through 5 million
customer accounts
• 15 counties, 185 cities and 13 Native
American tribes
• SCE plans to spend more than $5B each
year to maintain, improve, and harden its
infrastructure
• Infrastructure reliability – updating
underground cables, poles, switches, and
transformers
Who We Are
Lawndale Preliminary 2023 Circuit Reliability Review
Note: 2023 outage data must be verified by a thorough validation process that occurs from January 2024 to March 2024
Overview of Lawndale CircuitList1
There are 15 circuits that serve Lawndale 1
Circuit Type Customers Circuit Type Customers Circuit Type Customers Circuit Type Customers ALBACORE(16KV) 2,026 - - -
BLOSSOM(16KV) 1,742 - - -
BLUEGILL(16KV) 3,177 - - -
DEBORAH(16KV) 2,882 - - -
FLYWHEEL(16KV) 1,650 - - -
FREEMAN(4.16KV) 1,314 - - -
GRAVEYARD(16KV) 1,424 - - -
KORNBLUM(4.16KV) 978 - - -
ROSEMARY(4.16KV) 1,219 - - -
SHOUP(4.16KV) 935 - - -
SUTRO(4.16KV) 654 - - -
TALENT(4.16KV) 556 - - -
TRANSPLANT(4.16KV) 1,516 - - -
WHALE(16KV) 696 - - -
ZEBRA(16KV) 2,061 - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
Grand Total 22,830
Note: The number of customers listed
represents the total number of customers on
each circuit (not the local jurisdiction).
4 CircuitMap
5 6
How Do We Measure Reliability?
Total minutes
every SCE
customer was
without power
due to sustained
outages
Total number of
customers
SAIDI
System Average
Interruption
Duration Index
Total number of
sustained
customer outages
experienced by
SCE customers (CI)
Total number of
customers
SAIFI
System Average
Interruption
Frequency Index
Total number of
momentary
customer outages
experienced by
SCE customers (CI)
Total number of
customers
MAIFI
Momentary
Average
Interruption
Frequency Index
What’s the average
amount of time my power
service will be
unexpectedly interrupted?

DURATION
What’s the average
number of times my power
service will be
unexpectedly interrupted?

FREQUENCY
What’s the average
number of times my power
service will be
momentarily (< 5 minutes)
interrupted?
7 Jan. 2024: Four outages with
SAIDI 8.2 mins - primarily weather.
8 Capital Improvement Map
The capital improvement map has transitioned to a virtual format via SCE Capital Improvements and can be accessed using the link provided or sce.com/CapitalImprovements.

Outage Communication:

Keeping Our Communities Informed
9 Customer Notifications for Planned Maintenance Outages 10 11 Days Out 8-10 Days Out Less than 10
days
3 Days Out 1 Day Out Day of Outage
Automated
messages sent to
enrolled customers
Notifications sent
via mail
Our goal is for,
customers
to receive letter
with at least 5
days-notice.

Automated
notifications sent.

If necessary, staff
will provide
notification via
Door Hangers
Critical care
customers are
called to remind
them of outage
Automated
reminders
Automated
updates if
changes occur
*For Planned Maintenance Outages, SCE makes reasonable attempts to follow this timeline, however there may be instances when adjustments must be made.

GO TO SCE.COM/OUTAGE
11 Map is updated approx. 30 minutes after reported outage Insert address:
https://www.sce.com/outage-center/check-outage-status
1-800-611-1911 outage
Go-to SCE website links, emails and phone numbers
Issue Type Website Contact Info
Outages -report/status
General Customer –
status/residents
Outage Prep. Tips
Sign up for outage alerts
www.sce.com/outage
https://www.sce.com/outage-center/report-anoutage
https://www.sce.com/outage-center/checkoutage-status
App download: My SCE
https://www.sce.com/outage-center/preparingfor-outages Downed power lines: 911
1-800-611-1911
1-800-655-4555
Sign into account at sce.com
Go to preference center
File or get status of a claim www.sce.com/claims 800-251-3311 [email protected] Ensure clearance between
vegetation & power lines
Vegetation Management
sce.com/safety/power-lines 800-655-4555
[email protected]
Report a streetlight out https://www.sce.com/outage-center/report-streetlight-outage OR My SCE app or call (800) 611-
1911 #3
Medical Baseline https://www.sce.com/residential/assistance/medic al-baseline 1-800-684-8123 or 800-655-4555
Get valuable information about
portable battery backup,
generators.
sce.com/marketplace
Thank you. Questions?
Note: 2023 outage data must be verified by a thorough validation process that occurs from January 2024 to March 2024
2 3

DRAFT MINUTES

LAWNDALE CITY COUNCIL REGULAR MEETING
February 5, 2024
A. CALL TO ORDER AND ROLL CALL
Mayor Pullen-Miles called the meeting to order at 6:30 p.m. in the City Hall Council Chamber, 14717 Burin Avenue, Lawndale, California.

Councilmembers Present: Mayor Robert Pullen-Miles, Mayor Pro Tem Bernadette Suarez, Councilmember Rhonda Hofmann Gorman,
Councilmember Pat Kearney, Councilmember Sirley
Cuevas
Other Participants: City Manager Sean M. Moore, City Attorney Gregory M.

Murphy, City Clerk Erica Harbison, Assistant City Clerk Yvette Hall, Deputy City Manager/Director of Human
Resources Raylette Felton, Los Angeles County Sheriff's Department Captain Nicole Palomino, Los Angeles County
Fire Department Chief Ramon Valdoria, Municipal Services Director Michael Reyes, Finance Director Hrant Manuelian, Community Services Director Mike Estes, Community
Development Manager Jared Chavez.

B. CEREMONIALS
Councilmember Hofmann Gorman led the flag salute. Pastor Matthew Harbison of Lawndale Wesleyan Church provided the inspiration.

C. PUBLIC SAFETY REPORT
a. Los Angeles County Sheriff’s Department Update
Captain Palomino summarized the recent law enforcement activities and announced a Coffee with a Cop event to be held at The Experimentally Structured Museum of Art (ESMoA) on February 27, 2024, from 9 am to 10 am.

Councilmember Hofmann Gorman thanked the Sheriff Deputies for their efforts and requested they be issued a letter of commendation.
b. Los Angeles County Fire Department Update
Fire Chief Valdoria was not present due to an emergency.

D. ORAL COMMUNICATIONS - ITEMS NOT ON THE AGENDA (Public Comments) Sandra Suarez, Resident, commented on the City’s code violation citations given to property owners for fence height issues, height of hedges on the medians on Hawthorne Boulevard, and permit issuance timeframes.
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John Martinez, Resident and Vice President of the Lawndale Little League, commented on the baseball field improvements that the Lawndale Little League worked on at Janes Adams Park and stated that they were accepting registrations.

Nilo Vega Michelin, El Camino College Board of Trustees Member, commented in opposition to the Metro C Line (Green) Extension Project.

Ann Phillips, Lawndale Elementary School District (LESD) Board of Trustees Member, provided information on LESD’s boundaries, student enrollment data, and enrollment events.

E. COMMENTS FROM COUNCIL
Councilmember Cuevas thanked everyone that attended tonight’s meeting, inquired about the hedges in the medians on Hawthorne Boulevard, thanked the Lawndale Little League for maintaining the baseball fields, asked about the City’s maintenance of the baseball fields, and confirmed that LESD’s website is accessible in English and Spanish.

City Manager Moore responded that staff will follow-up on the hedges on Hawthorne Boulevard.

Community Services Director Estes responded that requests for baseball field maintenance are coordinated with the Public Works Department.

Councilmember Hofmann Gorman thanked the Lawndale Little League for all the work they do, asked if Lawndale Little League sign-ups can be posted on the City’s website, and thanked El Camino College Board of Trustee Member Michelin and LESD Board of Trustees Member Phillips for their updates.

City Manager Moore responded that the City Council Policy Manual restricts the type of postings allowed on City’s social media accounts and website.

Councilmember Kearney thanked everyone that spoke at tonight’s meeting and the Lawndale Little League for the work they do. He also thanked LESD Board of Trustees Member Phillips for the LESD updates.

Mayor Pro Tem Suarez thanked everyone that attended tonight’s meeting, asked staff to followup on the hedges on Hawthorne Boulevard, requested a report on permit processing times, thanked El Camino College Board of Trustee Member Michelin and LESD Board of Trustees Member Phillips for the updates.

Mayor Pullen-Miles thanked everyone that attended tonight's meeting, requested a report on permit processing times, thanked the Lawndale Little League for the baseball field improvements, thanked El Camino College Board of Trustee Member Michelin for his comments on the Metro C Line (Green) Extension Project, and thanked LESD Board of Trustees Member Phillips for LESD updates and for extending the Dual Immersion Program offerings.

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F. CONSENT CALENDAR

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. Accounts Payable Register
Recommendation: that the City Council adopt Resolution No. CC-2401-055 authorizing the payment of certain claims and demands in the amount of $1,051,400.85.

3. Minutes of the Lawndale City Council Regular Meeting, January 16, 2024 Recommendation: that the City Council approve the minutes.

4. Consideration of Claims for Damage against the City
Recommendation: that the City Council reject the claim filed by Wilfredo Perez and instruct staff to process the appropriate correspondence to the claimant.

5. Approval of the General Services Agreement Renewal with County of Los Angeles
Recommendation: that the City Council approve the General Services Agreement with the County of Los Angeles for the five (5) year period of June 30, 2024, to July 1, 2029.

A motion was made by Councilmember Kearney and seconded by Councilmember Hofmann Gorman to approve the Consent Calendar. The motion passed by a vote of 5-0.

G. PUBLIC HEARING

6. Consideration of Ordinance No. 1205-24 to amend certain sections in Title 17 of the Lawndale Municipal Code pertaining to accessory dwelling units within the City of Lawndale
Recommendation: that the City Council A.) Conduct a public hearing; B.) Determine that Ordinance No. 1205-24 is exempt from the California Environmental Quality Act ("CEQA") pursuant to Section 15061(b)(3) and Section 15282(h) of the CEQA Guidelines; and C.) Introduce for first reading by title only Ordinance No. 1205-24, an Ordinance amending the Lawndale Municipal Code regarding accessory dwelling units (ADUs) to reflect recent changes in state law and waive further reading.

Community Development Manager Chavez presented the staff report.

Mayor Pullen-Miles opened the public hearing at 7:04 p.m.

There were no public comments.

Mayor Pullen-Miles closed the public hearing at 7:04 p.m.

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A motion was made by Councilmember Kearney and seconded by Councilmember Hofmann Gorman to conduct a public hearing, determine that Ordinance No. 1205- 24 is exempt from the California Environmental Quality Act ("CEQA") pursuant to Section 15061(b)(3) and Section 15282(h) of the CEQA Guidelines, and introduce for first reading by title only Ordinance No. 1205-24, an Ordinance amending the Lawndale Municipal Code regarding accessory dwelling units (ADUs) to reflect recent changes in state law and waive further reading. The motion passed by a vote of 5-0.

City Attorney Murphy read the ordinance by title only and waived further reading.

H. ADMINISTRATION

7. City Council Ad Hoc Subcommittees and Standing Committees Recommendation: that the City Council review the Parking and Traffic Solutions Ad Hoc Subcommittee and direct staff on whether this committee can be dissolved (if subject matter has been completed), or if there are outstanding tasks that have not yet been resolved, and if any modifications, replacement, or continued appointment of members is desired.

Assistant City Clerk Hall presented the staff report.

Councilmember Keaney proposed not changing the Parking and Traffic Solutions Ad Hoc Subcommittee (PTSAHS) because it might be needed for the Bike Master Plan Update.

Mayor Pro Tem Suarez asked if an update was provided by the PTSAHS.

City Manager Moore indicated that there are still some items to be addressed by the PTSAHS.

Discussion ensued among the City Councilmembers and staff regarding the last time meetings were held, forming a subcommittee to address the Bike Master Plan and possibly broadening the scope of the PTSAHS.

By consensus, the City Council agreed to reappoint Councilmember Kearney and Councilmember Hofmann Gorman to the Parking and Traffic Solutions Ad Hoc Subcommittee.

8. Fireworks Update 2024
Recommendation: that the City Council receive and file this Fireworks Update 2024 report and take other action if deemed appropriate.

Finance Director Manuelian presented the staff report.

Matthew Harbison, Pastor of Wesleyan Church of Lawndale, requested to appeal staff’s recommendation to disqualify his organization from next year’s application process due to illness and technical issues with his submission. He commented that the City Council should consider revising the Lawndale Municipal Code (LMC).

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Discussion ensued among City Councilmembers and staff regarding fines, allowing leniency for late submissions and revising the LMC.

Councilmember Hofmann Gorman inquired if the LMC should be revised for clarification.

City Attorney Murphy responded that staff’s recommendation followed the applicable process per the LMC. He stated that staff would review the LMC.

A motion was made by Mayor Pro Tem Suarez and seconded by Councilmember Cuevas to reinstate Wesleyan Church of Lawndale to participate in the application process. The motion passed by a vote of 3-2-0. Councilmember Kearney and Councilmember Hoffman Gorman voted no.

Discussion ensued among the City Council and staff regarding Lawndale Little League’s license revocation, the length of time that Lawndale Little League should be disqualified and the number of yearsthat an organization is banned from applying for a fireworks permit per the LMC for noncompliance.

By consensus, the City Council agreed to receive and file the staff report.

9. Update of Results for Illegal Fireworks Suppression Plan for 2023 Recommendation: that the City Council receive and file this staff report.

Municipal Services Director Reyes presented the staff report.

Councilmember Cuevas inquired how long a resident has to appeal a citation and how long it takes to receive a refund.

Municipal Services Director Reyes responded that residents have three weeks to submit an appeal and that it may take several months before a refund is issued due to various reasons such as the scheduling of appeal hearing dates and further legal processes.

Councilmember Hofmann Gorman thanked the Sheriff's Department and Staff for their efforts and expressed her support for keeping the fines unchanged.

Municipal Services Director Reyes commented that there are no repeat violators from prior years.

By consensus, the City Council received and filed the staff report.

10. Quarterly Investment Report for the Quarter Ended December 31, 2023 Recommendation: that the City Council receive and file the Quarterly Investment Report for the quarter ended December 31, 2023.

Finance Director Manuelian presented the staff report.

By consensus, the City Council received and filed the Quarterly Investment Report for the quarter ended December 31, 2023.

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11. South Bay Cities Council of Governments Bike Master Plan Update Recommendation: that the City Council receive and file the report.

Community Development Manager Chavez presented the staff report.

Mayor Pro Tem Suarez asked if the entire grant amount of $113,000 is available to the City.

Community Development Manager Chavez responded that the full grant amount is available to the City on a reimbursable basis.

Councilmember Cuevas inquired why Hawthorne Boulevard was not a viable option.

City Manager Moore responded that it was a challenging street due to high traffic volume, limited parking and wide sidewalks. He stated that the Hawthorne Boulevard option can be reconsidered by the City Council.

Discussion ensued among City Councilmembers and staff regarding sidewalk width, bike lane street possibilities, bike lanes in other cities, South Bay City Council of Governments’ (SBCCOG) Local Travel Network Program and conducting another bike plan survey.

Councilmember Kearney proposed evaluating the City of El Segundo's bike plan pilot program and to consider a sharrow program for the City.

Mayor Pro Tem Suarez commented that she is in favor of implementing a slow street program if the budget permits and indicated that other South Bay Cities are participating in the SBCCOG Local Travel Network Program.

Mayor Pullen-Miles opened the public comment segment.

Andrew Blackney, Resident, commented in favor of bike lanes and the importance of having a separate infrastructure for bicyclists.

Matthew Harbison, Resident, stated that he is concerned that Metro will interfere with this type of project.

Mayor Pullen-Miles closed the public comment segment.

Councilmember Kearney commented that there has been opposition to installing bike lanes in the past due to safety concerns such as when bike lanes are blocked by parked vehicles.

Mayor Pullen-Miles commented on bike lane safeguards.

By consensus, the City Council directed staff to contact the SBCCOG regarding their Local Travel Network Program and bring back recommendations for the City Council to consider.

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12. Recommendation to use Development Impact Fees for an Art in Public Places Project to Paint Artwork onto Electrical Boxes
Recommendation: that the City Council give staff direction on one of the following options: A.) Use the Development Impact Fees to paint or wrap electrical boxes with depictions of art in a manner that is well received by the public that will showcase local artists; B.) Use the Development Impact Fees to fund a different art in public places display that does not utilize electrical boxes, such as a public sculpture or monument that will showcase local artists; or C) Give staff direction on the use of funds from Development Impact Fees for an art in public places showpiece not already mentioned.

Municipal Services Director Reyes presented the staff report.

Councilmember Cuevas inquired whether community members could participate in the project or if the City must contract with a vendor.

Municipal Services Director Reyes responded that the City Council could make project recommendations.

Councilmember Hofmann Gorman asked if research on cleaning the artwork has been conducted and if wrapping companies can produce customized wraps using the community's artwork.

Mayor Pro Tem Suarez supports community involvement in the painting of murals since it reduces the likelihood of vandalism.

Councilmember Hofmann Gorman suggested having an art theme.

Mayor Pullen-Miles spoke on the City of Long Beach's Utility Art Box Program and stated that he supports community participation in the painting of the electrical boxes. He commented on the City's Art in Public Places Policy, Development Impact Fees (DIF), and recommended using the current DIF in the amount of $15,000.

Discussion ensued among City Councilmembers about the artwork that should be displayed and securing property authorization from other agencies.

Councilmember Kearney inquired about the Youth Advisory Committee's (YAC) status.

Community Services Director responded that the YAC is currently inactive.

A motion was made by Councilmember Hofmann Gorman and seconded by Councilmember Cuevasto select Option A: Use the Development Impact Fees to paint or wrap electrical boxes with depictions of art in a manner that is well received by the public that will showcase local artists and use the current Development Impact Fees funding in the amount of $15,000. The motion passed by a vote of 5-0.

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13. Award of Construction Contract to FS Contractors, Inc. for the Prop A Concrete Bus Pad Installation Project
Recommendation: that the City Council 1.) Award a construction contract in the amount of $319,050.00 to FS Contractors, Inc. of Sylmar, CA, for the Prop A Concrete Bus Pad Installation Project; and 2.) Approve the construction contingency amount of $63,810.00 for this project.

City Manager Moore presented the staff report.

Councilmember Kearney inquired whether the City will be compensated if the work is not completed within the scheduled time frame.

City Manager Moore responded that the contractor will be paid for the work performed and asked the City Attorney to provide clarification.

City Attorney Murphy responded that the Greenbook: Standard Specifications for Public Works Construction establishes penalties for excessive and chronic tardiness.

City Manager Moore noted that the signature page will be updated with the Mayor's signature line.

A motion was made by Councilmember Kearney and seconded by Councilmember Hofmann Gorman to award a construction contract in the amount of $319,050.00 to FS Contractors, Inc. of Sylmar, CA, for the Prop A Concrete Bus Pad Installation Project, approve the construction contingency amount of $63,810.00 for this project and modify the signature page by adding the Mayor’s signature to replace the City Manager’s signature. The motion passed by a vote of 5-0.

I. CITY MANAGER REPORT
City Manager Moore provided the schedule for residents to pick up sandbags.

J. ITEMS FROM CITY COUNCILMEMBERS

14. Advocating for Remote Teleconferencing/Virtual Meetings of the Los Angeles County City Selection Committee and Sector Subcommittees Recommendation: that the City Council 1.) review and provide feedback to the attached draft letters to Senator Steven Bradford and Assemblymember Tina McKinnor; and 2.) authorize the City Manager Department to finalize the letter with the Mayor and City Councilmember's signature lines.

City Manager Moore presented the staff report
Mayor Pro Tem Suarez requested to add language to the letter that states that virtual meetings will allow for a reduction in greenhouse gas emissions.

Mayor Pullen-Miles commented that there are times when a quorum is not met and meetings are canceled despite attendees traveling a significant distance to attend in-person meetings.

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February 5, 2024

Page 9 ends

By consensus, the City Council directed staff to add language to the letter stating that that virtual meetings will allow for a reduction in greenhouse gas emissions and authorize the City Manager’s Department to finalize the letter with the Mayor and City Councilmembers’ signature lines.

15. Mayor/City Councilmembers Report of Attendance at Meetings and/or Events Councilmember Cuevas attended a C Line/Green Line Community meeting hosted by Los Angeles County Supervisor Holly J. Mitchell, and a Right-of-Way (ROW) Neighborhood Meeting.

Councilmember Hofmann Gorman attended a ROW Neighborhood Meeting, commented that she received a compliment about the senior fitness classes, requested that the classes and the Beautification Committee vacancies be promoted on social media, commented on concerns she received about Republic Services, requested that a representative from Southern California Edison (SCE) attend an upcoming City Council meeting to provide information on power outages, and inquired about the contract amount paid to Mariposa Landscape to maintain the ROW and when the contractor was first hired. Councilmember Hofmann Gorman thanked staff for making pre-made sandbags available to residents and requested that they be announced on social media and the website.

Councilmember Kearney attended the 26th Annual Wildhorse Pow Wow.

Mayor Pro Tem Suarez attended a SBCCOG Board of Directors meeting, ROW Neighborhood Meeting, Beautification Committee Holiday Lights Contest Awards and encouraged residents to get involved with City committees.

Mayor Pullen-Miles attended a meeting with Leuzinger High School Coaches, a meeting with local Mayors hosted by City of Los Angeles Mayor Karen Bass, and the Beautification Committee Holiday Lights Contest Awards.

K. CLOSED SESSION

16. 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.

City Attorney Murphy announced the aforementioned Closed Session by title only.

The City Council convened into closed session at 8:51 p.m.

The City Council reconvened from closed session at 9:20 p.m.

City Attorney Murphy reported there was no reportable action.

DRAFT Minutes - City Council
February 5, 2024

Page 10 ends

L. ADJOURNMENT
There being no further business to conduct, Mayor Pullen-Miles adjourned the meeting in memory of Raymond Cordova, Chairman of South County Labor, at 9:21 p.m. _________________________________
Robert Pullen-Miles, Mayor
ATTEST:

Erica Harbison, City Clerk
Approved: 03/04/2024
DATE:

TO:

FROM:

REVIEWED BY:

PREPARED BY:

SUBJECT:

BACKGROUND

CITY OF LAWNDALE
14717 BURIN A VENUE, LAWNDALE, CALIFORNIA 90260
PHONE (310) 973-3200, FAX (310) 644-4556
www.lawndalecity.org
March 4, 2024
Honorable Mayor and City Coupil /
Sean Moore, City Manager~
Jared Chavez, Community ·Development Manage~
Jose Hernandez, Associate Planner g
Second reading Ordinance No. 1205-24 to amend Chapter 17.48.056 to Title 17 of the Lawndale Municipal Code pertaining Accessory Dwelling Units.

On February 5, 2024, the City Council introduced and approved the first reading of Ordinance No. 1205-24 to amend the Lawndale Municipal Code (LMC) pertaining to accessory dwelling units (ADU).

ANALYSIS
The City Council introduced and approved the first reading of Ordinance No. 1205-24, amending Title 17 of the Lawndale Municipal Code regarding accessory dwelling units. The proposed amendments to the City's regulations are intended to bring the L.M.C. in compliance with the recent changes in the State law. It is recommended that the City Council adopt Ordinance No 1205-24 approving the updates.

LEGAL REVIEW
The City Attorney's office has reviewed and approved Ordinance No. 1205-24 as to form.

FUNDING
Not applicable

RECOMMENDATION
It is reconunended that the City Council read by title only, waive further reading, and adopt Ordinance No. 1205-24 to amend ADUs to comply with recent changes in State law.

ATTACHMENT:

Ordinance No_- 1205-24
5 ,_-o f LAW,i,_,
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DATE:

TO:

FROM:

PREPARED BY:

SUBJECT:

BACKGROUND

CITY OF LAWNDALE
14717 BURIN A VENUE, LAWNDALE, CALIFORNIA 90260
PHONE (310) 973-3200 ♦ www.lawndalecity.org
March 4, 2024
Honorable Mayor and City Counc/1 /
Raylette
Sean M.

Felton,
Moore,
Deputy
City Manag
City
�
Manager/ Human Resources Directqr
.�
Consideration of Claims fo1· Damage against the City
The City of Lawndale received a claim for personal injury damage filed by Jason Javaheri, Esq., Law Offices of Javaheri & Yahoudai, representing Oscar Javier Roldan (Claimant) on or about December 7, 2023. The claim filed alleged that on or about July 25, 2023, while riding a e-scooter on Hawthorne Blvd near 145th Street, in Lawndale, CA, the claimant was involved in an accident. This matter was refened to the City's third-party claims administrator (Carl Warren & Company) for review and investigation.

STAFF REVIEW
The City's third-party claims administrator, Carl Warren & Company, reviewed the claim as filed and determined that the liability for the claim could not be assigned to the City and recommends that the City reject the claim as filed.

LEGAL REVIEW
NIA

RECOMMENDATION
Staff recommends City Council reject the claim filed by Law Offices of Javaheri & Yahoudai on behalf of Oscar Javier Roldan and instrnct staff to process the appropriate cotrnspondence to the claimant.

Attachments: 1) Claim for Damages to Person or Property and Rejection Notice - Oscar Javier Roldan (CJP-3050271)
6 ~-f \.AW,i,b"I"
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C-4(/FOl\ll\l'-
DATE:

TO:

FROM:

PREPARED BY:

SUBJECT:

BACKGROUND

CITY OF LAWNDALE
14717 BURIN AVENUE, LAWNDALE, CALIFORNIA 90260
PHONE (310) 973-3200 ♦ www.lawndalecity.org
March 4, 2024
Honorable Mayor and City Council
Sean M. Moore, City Manager
Raylette Felton, Deputy City anager/Human Resources Direct~ Request for approval of First Amendment to Contract Service Agreement with Transtech Engineers, Inc. for Professional City Engineering and Pnblic Works Oversight Services
Effective Februaiy 1, 2024, the Director of Public Works/City Engineer resigned from City employment.

Due to the short notice of the resignation and the immediate need to maintain the continuity of projects and depaiiment oversight, Transtech Engineers, Inc. was retained, within the City Manager's signing authority, based on the film's background and knowledge of the department's critical projects.

STAFF REVIEW
In February 2024, Transtech Engineers, Inc. was preliminaiy selected to immediately commence department and oversight work for the City. Subsequently, City staff requested proposals from three (3) professional engineering films (Project Partners, W.G. Zimmerman Engineering, Inc., and Transtech Engineers). Transtech Engineers, Inc. was selected to continue to provide tempora1y professional civil engineering, contract management, and public works oversight services to the City's Public Works Department based on the consultant's availability, proven experience and technical expertise, and familiarity with the City's operations.

While the Director of Public Works/City Engineer recruitment process is cmTently underway, it is imperative that the City maintain professional civil engineering and oversight services to oversee critical public works and engineering projects, the daily activities of the City's Public Works Department, and other services as needed by the City Manager. The initial contract agreement was established under the City Manager's signing authority, for a total contract sum amount of $14,950. However, additional consulting hours are necessaiy. As such, staff is recol11111ending the approval of a first amendment to the contract services agreement with Transtech Engineers, Inc. to increase the contract sum amount by $146,640, for a maximum contract sum not exceed $161,590, and extend the term of the agreement for a six (6) month period, through September 30, 2024. The consultant's rate will continue to be set at $188 per hour, between 20 to 25 hours per week. Any changes in duration will be discussed and approved in writing prior to implementation.
7 City Council Meeting - March 4, 2024
First Amendment to Contract Services Agreement - Transtech Engineers, Inc.

LEGAL REVIEW
The City Attorney's office has reviewed contract amendment and has approved it to form.

FISCAL IMP ACT
Salary savings from the vacant Director of Public Works/City Engineer position will be used to cover the cost of the consultant. We expect to have $93,025 in salmy savings for the 5 months that the PW Director position will be vacant and the costs of this contract amendment through year end assuming 25 hours per week will be roughly $20,000, therefore we have enough salmy savings that can be transferred over without the need for additional budget. No additional budget appropriation will be needed. The budget will be transferred from salaries to contract services within the Public Works department.

RECOMMENDATION
Staff recommends that City Council: a) approve the first amendment to the contract services agreement with Transtech Engineers, Inc. for Professional City Engineering and Public Works Oversight Services in a maximum contract sum not to exceed $161,590; and b) authorize the Director of Finance/City Treasurer to transfer salary savings for the Director of Public Works/ City Engineer to the contract services line item in the Public Works Depmiment budget.

Attachment: 1) First Amendment to Contract Services Agreement with Transtech Engineers, Inc. 2) Transtech Engineers, Inc. Proposal dated Febrnaty 21, 2024 2 ATTACHMENT 1
First Amendment to Contract Services Agreement for Professional City Engineering and Public Works Oversight Services
with Transtech Engineers, Inc.
3 8

a. In accordance with the Act, a part-time employee may use accrued paid sick leave in a 12-month period for one of the following reasons:
• For the employee's own diagnosis, care, or treatment of an existing health condition or preventative care.
• For the diagnosis, care, or treatment of an existing health condition or preventative care ofan employee's family member or designated person, including:
o Child (including a biological, adopted, or foster child, stepchild, legal ward, or a child to whom the employee stands in locoparentis.) o Spouse or Registered Domestic Partner
o Parent (including biological, adoptive, or foster parent, stepparent, or legal guardian of an employee or the employee's spouse or registered domestic paiiner, or a person who stood in loco parentis when the employee was a minor child.)
o Grandparent
o Grandchild.
o Sibling
o Designated person (a person identified by the employee at the time the employee requests to use paid sick days for that person). Once an employee has requested use of sick leave for a "designated person," the City may prohibit the employee from using sick leave in the same 12- month period for anyone other than that "designated person" who is not a "family member."
• For a pai1-time employee who is the victim of domestic violence, sexual assault, or stalking, the purposes described in California Labor Code Sections 230(c) and 230. l(a) (including subsequent amendment.)
• To obtain any relief or services related to being a victim of domestic violence, semml assault, or stalking including the follov,ing:
o A temporary restraining order or restraining order.
o Other injunctive relief to help ensure the health, safety or welfare of themselves or their children.
o To seek medical attention for injuries caused by domestic violence, sexual assault, or stalking.
o To obtain services from a domestic violence shelter, program, or rape crisis center as a result of domestic violence, se�mal assault, or stalking. o To obtain psychological counseling related to an experience of domestic violence, se�mal assault, or stalking.
o To participate in safety planning and take other actions to increase safety from fu 1 ture domestic violence, sexual assault, or stalking, including temporary or permanent relocation.
b. A part-time employee shall provide reasonable advance notification of their need to use accrued paid sick leave to their supervisor if the need for paid sick leave use is foreseeable 38 AFSCME 2023-2025 MOU

41 AFSCME 2023-2025 MOU
Current Job Title New
Range Step A Step B Step C Step D Step E
Deputy City Clerk 74 $5,734 $6,021 $6,322 $6,638 $6,970 Assistant Planner 79 $6,027 $6,328 $6,644 $6,976 $7,325 Grant/Economic Dev Coordinator 82 $6,209 $6,520 $6,846 $7,188 $7,547 Community Services Supervisor 86 $6,461 $6,784 $7,124 $7,480 $7,854 Administrative Analyst 87 $6,526 $7,195 $7,195 $7,555 $7,932 Assistant Engineer 87 $6,526 $7,195 $7,195 $7,555 $7,932 Municipal Services Supervisor 93 $6,927 $7,274 $7,637 $8,019 $8,420 Maintenance Supervisor 96 $7,137 $7,494 $7,869 $8,262 $8,675 Senior Management Analyst 97 $7,209 $7,569 $7,948 $8,345 $8,762 Associate Planner 98 $7,281 $7,645 $8,027 $8,428 $8,850 Associate Engineer 107 $7,963 $8,361 $8,779 $9,218 $9,679 Senior Planner 109 $8,123 $8,529 $8,955 $9,403 $9,873
Cable Television Supervisor 113 $8,453 $8,875 $9,319 $9,785 $10,274 Community Development Manager 120 $9,062 $9,516 $9,991 $10,491 $11,015 Accounting Manager 121 $9,153 $9,611 $10,091 $10,596 $11,126 Municipal Services Manager 125 $9,525 $10,001 $10,501 $11,026 $11,577 Community Services Manager 125 $9,525 $10,001 $10,501 $11,026 $11,577

CITY OF LAWNDALE
2023-2024 Salary Schedule (2% effective 07/01/2023)

MID-MANAGEMENT UNIT
Current Job Title New
Range Step A Step B Step C Step D Step E
Deputy City Clerk 76 $5,849 $6,021 $6,322 $6,638 $6,970 Assistant Planner 81 $6,148 $6,328 $6,644 $6,976 $7,325 Grant/Economic Dev Coordinator 84 $6,334 $6,651 $6,983 $7,332 $7,699 Community Services Supervisor 88 $6,591 $6,921 $7,267 $7,630 $8,012 Administrative Analyst 89 $6,657 $6,990 $7,339 $7,706 $8,092 Assistant Engineer 89 $6,657 $6,990 $7,339 $7,706 $8,092 Municipal Services Supervisor 95 $7,067 $7,420 $7,791 $8,180 $8,590 Maintenance Supervisor 98 $7,281 $7,645 $8,027 $8,428 $8,850 Senior Management Analyst 99 $7,354 $7,721 $8,107 $8,513 $8,938 Associate Planner 100 $7,427 $7,798 $8,188 $8,598 $9,028 Associate Engineer 109 $8,123 $8,529 $8,955 $9,403 $9,873 Senior Planner 111 $8,286 $8,700 $9,135 $9,592 $10,072
Cable Television Supervisor 115 $8,623 $9,054 $9,506 $9,982 $10,481 Community Development Manager 122 $9,245 $9,707 $10,192 $10,702 $11,237 Accounting Manager 123 $9,337 $9,804 $10,294 $10,809 $11,349 Municipal Services Manager 127 $9,716 $10,202 $10,712 $11,248 $11,810 Community Services Manager 127 $9,716 $10,202 $10,712 $11,248 $11,810

MID-MANAGEMENT UNIT

CITY OF LAWNDALE
2024-2025 Salary Schedule (2% effective 07/01/2024)
42 AFSCME 2023-2025 MOU

ATTACHMENT B
43 AFSCME 2023-2025 MOU
Current Job Title New
Range Step A Step B Step C Step D Step E
Senior Nutrition Specialist 6 $2,915 $3,061 $3,214 $3,374 $3,543 Maintenance Worker I 40 $4,088 $4,293 $4,507 $4,733 $4,969 Municipal Services Officer I 40 $4,088 $4,293 $4,507 $4,733 $4,969 Transit Operator 42 $4,170 $4,379 $4,598 $4,828 $5,069
Maintenance Worker II 52 $4,607 $4,837 $5,079 $5,333 $5,600 Accounting Specialist 53 $4,653 $4,885 $5,130 $5,386 $5,655 Building Permit Specialist 59 $4,939 $5,186 $5,445 $5,718 $6,003 Municipal Services Officer II 60 $4,988 $5,238 $5,500 $5,775 $6,063 Office /Personnel Assistant 61 $5,038 $5,290 $5,555 $5,832 $6,124 Administrative Assistant II 61 $5,038 $5,290 $5,555 $5,832 $6,124 Recreation Coordinator 61 $5,038 $5,290 $5,555 $5,832 $6,124 Community Services Coordinator 61 $5,038 $5,290 $5,555 $5,832 $6,124 Accounting / Payroll Specialist 64 $5,191 $5,451 $5,723 $6,009 $6,310 Maintenance Worker III 68 $5,402 $5,672 $5,955 $6,253 $6,566 Code Enforcement Officer I 73 $5,677 $5,961 $6,259 $6,572 $6,901 Engineering Technician 73 $5,677 $5,961 $6,259 $6,572 $6,901 Public Works Inspector 74 $5,734 $6,021 $6,322 $6,638 $6,970 Code Enforcement Officer II 79 $6,027 $6,328 $6,644 $6,976 $7,325 Executive Assistant 87 $6,526 $6,852 $7,195 $7,555 $7,932 Current Job Title New
Range Step A Step B Step C Step D Step E
Delivery Worker 3 $16.32 $17.14 $17.99 $18.89 $19.84
Recreation Leader 3 $16.32 $17.14 $17.99 $18.89 $19.84
Senior Recreation Leader 6 $16.82 $17.66 $18.54 $19.47 $20.44 CATV Production Assistant 35 $22.44 $23.56 $24.74 $25.98 $27.28 Office Assistant 38 $23.12 $24.28 $25.49 $26.77 $28.10
Maintenance Worker I 40 $23.59 $24.77 $26.00 $27.30 $28.67 Municipal Services Officer I 40 $23.59 $24.77 $26.00 $27.30 $28.67 Transit Operator 42 $24.06 $25.26 $26.53 $27.85 $29.25
CATV Production Assistant II 45 $24.79 $26.03 $27.33 $28.70 $30.13 Emergency Preparedness Coordinator 51 $26.31 $27.63 $29.01 $30.46 $31.98 Municipal Services Officer II 60 $28.78 $30.22 $31.73 $33.32 $34.98 Code Enforcement Officer I 73 $32.75 $34.39 $36.11 $37.92 $39.81 Associate Planner 98 $42.00 $44.10 $46.31 $48.63 $51.06

CLASSIFIED UNIT (CL)

PART-TIME EMPLOYEES HOURLY (PT)

CITY OF LAWNDALE
2023-2024 Salary Schedule (2% effective 07/01/2023)
44 AFSCME 2023-2025 MOU
Current Job Title New
Range Step A Step B Step C Step D Step E
Senior Nutrition Specialist 8 $2,973 $3,122 $3,278 $3,442 $3,614 Maintenance Worker I 42 $4,170 $4,379 $4,598 $4,828 $5,069 Municipal Services Officer I 42 $4,170 $4,379 $4,598 $4,828 $5,069 Transit Operator 44 $4,254 $4,467 $4,690 $4,925 $5,171
Maintenance Worker II 54 $4,699 $4,934 $5,181 $5,440 $5,712 Accounting Specialist 55 $4,746 $4,984 $5,233 $5,494 $5,769 Building Permit Specialist 61 $5,038 $5,290 $5,555 $5,832 $6,124 Municipal Services Officer II 62 $5,089 $5,343 $5,610 $5,891 $6,185 Office /Personnel Assistant 63 $5,140 $5,397 $5,666 $5,950 $6,247 Administrative Assistant II 63 $5,140 $5,397 $5,666 $5,950 $6,247 Recreation Coordinator 63 $5,140 $5,397 $5,666 $5,950 $6,247 Community Services Coordinator 63 $5,140 $5,397 $5,666 $5,950 $6,247 Accounting / Payroll Specialist 66 $5,295 $5,560 $5,838 $6,130 $6,436 Maintenance Worker III 70 $5,510 $5,786 $6,075 $6,379 $6,698 Code Enforcement Officer I 75 $5,791 $6,081 $6,385 $6,704 $7,039 Engineering Technician 75 $5,791 $6,081 $6,385 $6,704 $7,039 Public Works Inspector 76 $5,849 $6,142 $6,449 $6,771 $7,110 Code Enforcement Officer II 81 $6,148 $6,455 $6,778 $7,117 $7,473 Executive Assistant 89 $6,657 $6,990 $7,339 $7,706 $8,092 Current Job Title New
Range Step A Step B Step C Step D Step E
Delivery Worker 5 $16.65 $17.48 $18.36 $19.27 $20.24
Recreation Leader 5 $16.65 $17.48 $18.36 $19.27 $20.24
Senior Recreation Leader 8 $17.15 $18.01 $18.91 $19.86 $20.85 CATV Production Assistant 37 $22.89 $24.04 $25.24 $26.50 $27.83 Office Assistant 40 $23.59 $24.77 $26.00 $27.30 $28.67
Maintenance Worker I 42 $24.06 $25.26 $26.53 $27.85 $29.25 Municipal Services Officer I 42 $24.06 $25.26 $26.53 $27.85 $29.25 Transit Operator 44 $24.54 $25.77 $27.06 $28.41 $29.83
CATV Production Assistant II 47 $25.29 $26.55 $27.88 $29.27 $30.74 Emergency Preparedness Coordinator 53 $26.84 $28.19 $29.59 $31.07 $32.63 Municipal Services Officer II 62 $29.36 $30.83 $32.37 $33.99 $35.68 Code Enforcement Officer I 75 $33.41 $35.08 $36.84 $38.68 $40.61 Associate Planner 100 $42.85 $44.99 $47.24 $49.60 $52.08

CLASSIFIED UNIT (CL)

PART-TIME EMPLOYEES HOURLY (PT)

CITY OF LAWNDALE
2024-2025 Salary Schedule (2% effective 07/01/2024)

41 Resolution No. CC-2403-057 Exhibit “A”
AFSCME 2023-2025 MOU
Current Job Title New
Range Step A Step B Step C Step D Step E
Deputy City Clerk 74 $5,734 $6,021 $6,322 $6,638 $6,970 Assistant Planner 79 $6,027 $6,328 $6,644 $6,976 $7,325 Grant/Economic Dev Coordinator 82 $6,209 $6,520 $6,846 $7,188 $7,547 Community Services Supervisor 86 $6,461 $6,784 $7,124 $7,480 $7,854 Administrative Analyst 87 $6,526 $7,195 $7,195 $7,555 $7,932 Assistant Engineer 87 $6,526 $7,195 $7,195 $7,555 $7,932 Municipal Services Supervisor 93 $6,927 $7,274 $7,637 $8,019 $8,420 Maintenance Supervisor 96 $7,137 $7,494 $7,869 $8,262 $8,675 Senior Management Analyst 97 $7,209 $7,569 $7,948 $8,345 $8,762 Associate Planner 98 $7,281 $7,645 $8,027 $8,428 $8,850 Associate Engineer 107 $7,963 $8,361 $8,779 $9,218 $9,679 Senior Planner 109 $8,123 $8,529 $8,955 $9,403 $9,873
Cable Television Supervisor 113 $8,453 $8,875 $9,319 $9,785 $10,274 Community Development Manager 120 $9,062 $9,516 $9,991 $10,491 $11,015 Accounting Manager 121 $9,153 $9,611 $10,091 $10,596 $11,126 Municipal Services Manager 125 $9,525 $10,001 $10,501 $11,026 $11,577 Community Services Manager 125 $9,525 $10,001 $10,501 $11,026 $11,577

CITY OF LAWNDALE
2023-2024 Salary Schedule (2% effective 07/01/2023)

MID-MANAGEMENT UNIT

CITY OF LAWNDALE
2024-2025 Salary Schedule (2% effective 07/01/2024)
42 Resolution No. CC-2403-057 Exhibit “A”
AFSCME 2023-2025 MOU

ATTACHMENT B
43 Resolution No. CC-2403-057 Exhibit “A”
AFSCME 2023-2025 MOU
Current Job Title New
Range Step A Step B Step C Step D Step E
Senior Nutrition Specialist 6 $2,915 $3,061 $3,214 $3,374 $3,543 Maintenance Worker I 40 $4,088 $4,293 $4,507 $4,733 $4,969 Municipal Services Officer I 40 $4,088 $4,293 $4,507 $4,733 $4,969 Transit Operator 42 $4,170 $4,379 $4,598 $4,828 $5,069
Maintenance Worker II 52 $4,607 $4,837 $5,079 $5,333 $5,600 Accounting Specialist 53 $4,653 $4,885 $5,130 $5,386 $5,655 Building Permit Specialist 59 $4,939 $5,186 $5,445 $5,718 $6,003 Municipal Services Officer II 60 $4,988 $5,238 $5,500 $5,775 $6,063 Office /Personnel Assistant 61 $5,038 $5,290 $5,555 $5,832 $6,124 Administrative Assistant II 61 $5,038 $5,290 $5,555 $5,832 $6,124 Recreation Coordinator 61 $5,038 $5,290 $5,555 $5,832 $6,124 Community Services Coordinator 61 $5,038 $5,290 $5,555 $5,832 $6,124 Accounting / Payroll Specialist 64 $5,191 $5,451 $5,723 $6,009 $6,310 Maintenance Worker III 68 $5,402 $5,672 $5,955 $6,253 $6,566 Code Enforcement Officer I 73 $5,677 $5,961 $6,259 $6,572 $6,901 Engineering Technician 73 $5,677 $5,961 $6,259 $6,572 $6,901 Public Works Inspector 74 $5,734 $6,021 $6,322 $6,638 $6,970 Code Enforcement Officer II 79 $6,027 $6,328 $6,644 $6,976 $7,325 Executive Assistant 87 $6,526 $6,852 $7,195 $7,555 $7,932 Current Job Title New
Range Step A Step B Step C Step D Step E
Delivery Worker 3 $16.32 $17.14 $17.99 $18.89 $19.84
Recreation Leader 3 $16.32 $17.14 $17.99 $18.89 $19.84
Senior Recreation Leader 6 $16.82 $17.66 $18.54 $19.47 $20.44 CATV Production Assistant 35 $22.44 $23.56 $24.74 $25.98 $27.28 Office Assistant 38 $23.12 $24.28 $25.49 $26.77 $28.10
Maintenance Worker I 40 $23.59 $24.77 $26.00 $27.30 $28.67 Municipal Services Officer I 40 $23.59 $24.77 $26.00 $27.30 $28.67 Transit Operator 42 $24.06 $25.26 $26.53 $27.85 $29.25
CATV Production Assistant II 45 $24.79 $26.03 $27.33 $28.70 $30.13 Emergency Preparedness Coordinator 51 $26.31 $27.63 $29.01 $30.46 $31.98 Municipal Services Officer II 60 $28.78 $30.22 $31.73 $33.32 $34.98 Code Enforcement Officer I 73 $32.75 $34.39 $36.11 $37.92 $39.81 Associate Planner 98 $42.00 $44.10 $46.31 $48.63 $51.06

CLASSIFIED UNIT (CL)

PART-TIME EMPLOYEES HOURLY (PT)

CITY OF LAWNDALE
2023-2024 Salary Schedule (2% effective 07/01/2023)
44 Resolution No. CC-2403-057 Exhibit “A”
AFSCME 2023-2025 MOU
Current Job Title New
Range Step A Step B Step C Step D Step E
Senior Nutrition Specialist 8 $2,973 $3,122 $3,278 $3,442 $3,614 Maintenance Worker I 42 $4,170 $4,379 $4,598 $4,828 $5,069 Municipal Services Officer I 42 $4,170 $4,379 $4,598 $4,828 $5,069 Transit Operator 44 $4,254 $4,467 $4,690 $4,925 $5,171
Maintenance Worker II 54 $4,699 $4,934 $5,181 $5,440 $5,712 Accounting Specialist 55 $4,746 $4,984 $5,233 $5,494 $5,769 Building Permit Specialist 61 $5,038 $5,290 $5,555 $5,832 $6,124 Municipal Services Officer II 62 $5,089 $5,343 $5,610 $5,891 $6,185 Office /Personnel Assistant 63 $5,140 $5,397 $5,666 $5,950 $6,247 Administrative Assistant II 63 $5,140 $5,397 $5,666 $5,950 $6,247 Recreation Coordinator 63 $5,140 $5,397 $5,666 $5,950 $6,247 Community Services Coordinator 63 $5,140 $5,397 $5,666 $5,950 $6,247 Accounting / Payroll Specialist 66 $5,295 $5,560 $5,838 $6,130 $6,436 Maintenance Worker III 70 $5,510 $5,786 $6,075 $6,379 $6,698 Code Enforcement Officer I 75 $5,791 $6,081 $6,385 $6,704 $7,039 Engineering Technician 75 $5,791 $6,081 $6,385 $6,704 $7,039 Public Works Inspector 76 $5,849 $6,142 $6,449 $6,771 $7,110 Code Enforcement Officer II 81 $6,148 $6,455 $6,778 $7,117 $7,473 Executive Assistant 89 $6,657 $6,990 $7,339 $7,706 $8,092 Current Job Title New
Range Step A Step B Step C Step D Step E
Delivery Worker 5 $16.65 $17.48 $18.36 $19.27 $20.24
Recreation Leader 5 $16.65 $17.48 $18.36 $19.27 $20.24
Senior Recreation Leader 8 $17.15 $18.01 $18.91 $19.86 $20.85 CATV Production Assistant 37 $22.89 $24.04 $25.24 $26.50 $27.83 Office Assistant 40 $23.59 $24.77 $26.00 $27.30 $28.67
Maintenance Worker I 42 $24.06 $25.26 $26.53 $27.85 $29.25 Municipal Services Officer I 42 $24.06 $25.26 $26.53 $27.85 $29.25 Transit Operator 44 $24.54 $25.77 $27.06 $28.41 $29.83
CATV Production Assistant II 47 $25.29 $26.55 $27.88 $29.27 $30.74 Emergency Preparedness Coordinator 53 $26.84 $28.19 $29.59 $31.07 $32.63 Municipal Services Officer II 62 $29.36 $30.83 $32.37 $33.99 $35.68 Code Enforcement Officer I 75 $33.41 $35.08 $36.84 $38.68 $40.61 Associate Planner 100 $42.85 $44.99 $47.24 $49.60 $52.08

CLASSIFIED UNIT (CL)

PART-TIME EMPLOYEES HOURLY (PT)

CITY OF LAWNDALE
2024-2025 Salary Schedule (2% effective 07/01/2024)

DATE:

TO:

FROM:

PREPARED BY:

SUBJECT:

BACKGROUND

CITY OF LAWNDALE
14717 BURIN AVENUE, LAWNDALE, CALIFORNIA 90260
PHONE (310) 973-3200 ♦ www.lawndalecity.org
March 4, 2024
Honorable Mayor and City Coun~ /
Sean M. Moore, City Manag~
Public Works & City Engineering ;?t Contract Project Manager Hrant Manuelian, Finance Directo •
Grace Huizar, Senior Management alyst }!#-
Approval to Dispose of One Vehicle for the Public Works Department On an annual basis, staff performs a needs assessment of vehicles and equipment based on mileage, age, and resources lost due to down time for repairs. For this year, there is one vehicle in the Public Works Department that needs to be disposed of due to age and an expired Compressed Natural Gas (CNG) fuel tank.

The Lawndale Municipal Code, Section 3.08 ("Purchasing") establishes the duties of the Purchasing Officer and his/her designee. The purchasing code further states in Section 3.08.040, Item J that the Purchasing Officer shall: "recommend the sale of all supplies and equipment which cannot be used by any agency or which have become unsuitable for city use." In addition, Section 3 .08.110 B states: "sale of surplus personal property shall occur after soliciting three bids or by auction" and "items to be sold at auction must first be approved by the City Council."

STAFF REVIEW
The vehicle listed below has incurred significant resources due to repair needs and is being recommended for disposal.

Year Make and Model:

License Plate Number:

Vehicle Identification Number:

City Vehicle Number:
2007 Chevrolet HD3500 Dump Truck (Expired CNG Tank)
1298310
1 GBJC34U97E 185340
482
Last year in June 2023, the City purchased a brand new 2022 Ford F-550 Super Duty dump truck to replace the 2007 dump truck for a seamless transition.

Page 1 ends

9 City Council Meeting - March 4, 2024
Approval to Dispose of One Vehicle for Public Works Department

LEGAL REVIEW
The City Attorney has reviewed the staff report.

FISCAL IMP ACT
For the disposal of the dump truck recommended, the City has utilized the services of Ken Porter Auctions (KP A) who honors the State bid arrangement for auctioned items. Therefore, the vehicle will be sold at the highest price possible. In addition, the City will receive 100% of the proceeds, and at no cost to the City.

RECOMMENDATION
Staff recommends that the City Council:

I. Approve the sale of the 2007 Chevrolet HD3500 Dump Truck through the City's standard public auction process facilitated by Ken Porter Auctions in Carson, California.

Page 2 ends

10 2023

ANNUAL COMPREHENSIVE

FINANCIAL REPORT
For the Year Ended June 30, 2023

CITY OF LAWNDALE

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City of Lawndale,
California

ANNUAL COMPREHENSIVE

FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Prepared by:

Finance Department

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City of Lawndale
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2023

TABLE OF CONTENTS
Page
Number

INTRODUCTORY SECTION
Letter of Transmittal ..................................................................................................................... i Directory of Officials ................................................................................................................... vi Organizational Chart ................................................................................................................. vii GFOA Award ............................................................................................................................ viii

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

Government-Wide Financial Statements
Statement of Net Position .................................................................................................. 15 Statement of Activities ........................................................................................................ 16 Fund Financial Statements
Balance Sheet - Governmental Funds ............................................................................... 17 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ............................................................................................... 18 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds ..................................................................................... 19 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities ........................... 20 Statement of Fiduciary Net Position – Fiduciary Funds ..................................................... 21 Statement of Changes in Fiduciary Net Position –
Fiduciary Funds ............................................................................................................... 22 Notes to Financial Statements ................................................................................................. 23 Required Supplementary Information
Notes to Required Supplementary Information ........................................................................ 73 Budgetary Comparison Schedules
General Fund ........................................................................................................................ 74 Restricted Urban Development ............................................................................................. 75 ARPA Fund ........................................................................................................................... 76 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 ...................... 77 Schedule of Plan Contributions - CalPERS Cost Sharing Miscellaneous Plan ..................... 78 Schedule of Changes in Net Pension Liability and Related Ratios as of the Measurement Date - PARS Retirement Enhancement Plan ..................................................................... 79 Schedule of Plan Contributions - PARS Retirement Enhancement Plan .............................. 81 Schedule of Investment Returns - PARS Retirement Enhancement Plan ............................ 82 Schedule of Changes in the Total OPEB Liability and Related Ratios ................................. 83 City of Lawndale
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2023
TABLE OF CONTENTS (Continued)
Page
Number
Supplementary Information
Combining Balance Sheet – Non-Major Governmental Funds ................................................ 87 Combining Statement of Revenues, Expenditures and
Changes in Fund Balances – Non-Major Governmental Funds ............................................ 92 Budgetary Comparison Schedule – Special Revenue Funds
Gas Tax ................................................................................................................................ 97 Air Quality ............................................................................................................................. 98 Proposition A Local Transit Assistance ................................................................................. 99 Narcotics Forfeiture ............................................................................................................. 100 State COPS Grant .............................................................................................................. 101 CA Law Enforcement Equipment ........................................................................................ 102 Used Oil Recycling Grant .................................................................................................... 103 Lawndale Cable Usage Corporation ................................................................................... 104 Department of Conservation Grant ..................................................................................... 105 Justice Assisted Grant ........................................................................................................ 106 Park Development .............................................................................................................. 107 Measure M Local Return ..................................................................................................... 108 SB1 RMRA .......................................................................................................................... 109 Groundwater Sustainability (AB 939) .................................................................................. 110 Disability Access (AB 1379) ................................................................................................ 111 Measure W Safe Clean Water ............................................................................................ 112 SB1383 Local Assistance ................................................................................................... 113 Lawndale Housing Authority ............................................................................................... 114 Budgetary Comparison Schedule – Capital Projects Funds
TDA Article 3 (Metro) .......................................................................................................... 115 Proposition C Local Transit Assistance ............................................................................... 116 Community Development Block Grant ................................................................................ 117 Prop C25 Grant ................................................................................................................... 118 Measure R ........................................................................................................................... 119 Metro STPL Exchange 2017 ............................................................................................... 120

STATISTICAL SECTION
Financial Trends
Net Position by Component ................................................................................................ 121 Changes in Net Position ..................................................................................................... 122 Fund Balances of Governmental Funds ............................................................................. 124 Revenue Capacity
2022/23 Use Category Summary ........................................................................................ 125 Property Tax Dollar Breakdown .......................................................................................... 126 2022/23 Roll Summary ....................................................................................................... 127 Net Taxable Assessed Value History .................................................................................. 128 Assessed Value of Taxable Property .................................................................................. 129 City of Lawndale
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2023
TABLE OF CONTENTS (Continued)
Page
Number
STATISTICAL SECTION (Continued)
Debt Capacity
Direct & Overlapping Property Rates ................................................................................. 130 Demographic and Economic Information
2022/23 Top Ten Property Taxpayers ............................................................................... 131 2013/14 Top Ten Property Taxpayers ............................................................................... 132 2022/23 Direct & Overlapping ............................................................................................ 133 Demographic and Economic Statistics .............................................................................. 134 Principal Employers ........................................................................................................... 135 Sales Value History ............................................................................................................ 136 Top 25 Sales Tax Producers for Calendar Year 2022 ....................................................... 137 Top 25 Sales Tax Producers for Calendar Year 2013 ....................................................... 138 Taxable Sales by Category ................................................................................................ 139 Operating Information
Full-Time Equivalent City Employees by Function ............................................................. 140

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CITY ELECTED OFFICIALS
Mayor
Robert Pullen-Miles
Term Expires: November 2024
Mayor Pro Tem
Sirley Cuevas
Term Expires:

November 2024
Councilmember
Bernadette Suarez
Term Expires:

November 2026
Councilmember
Pat Kearney
Term Expires:

November 2026
Councilmember
Rhonda Hofmann
Gorman
Term Expires:

November 2024
City Clerk – Erica Harbison

CENTRAL MANAGEMENT TEAM
City Manager: Sean M. Moore, AICP
Deputy City Manager/HR Director: Raylette Felton
Director of Finance/City Treasurer:

Director of Community Development:

Hrant Manuelian, CPA
Vacant
Director of Public Works/ City Engineer: Lea Reis
Assistant City Clerk:

Director of Community Services:

Director of Municipal Services:

Yvette Hall
Mike Estes
Michael Reyes
vii

CITY OF LAWNDALE
City-Wide Organizational Chart
- General
Operations
- Human
Resources
- Cable
Television

CITY ATTORNEY
- Records
- Elections
- Public
Requests

ADMINISTRATIVE

SERVICES

CITY CLERK
DEPT.

COMMUNITY

DEVELOPMENT

CITY COUNCIL

CITY CLERK
- Administration
- Planning
- Building &
Safety
-Successor
Agency
-Housing
Authority
Low/Mod
Housing
- Administration
- Grounds &
Facilities
Maintenance
- Street
Maintenance
- Engineering
- Sheriff Liaison
-Code
Enforcement
-Animal Control
- Emergency
Preparedness

PUBLIC WORKS COMMUNITY

SERVICES
- Administration
- Parks &
Recreation
- Senior Services

CITY MANAGER

FINANCE
- Budget
Accounting
- Payroll
- Accounts
Payable
- Business
License
- Information
Systems

LAWNDALE ELECTORATE

PUBLIC SAFETY
& MUNICIPAL

SERVICES
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, 2022
Executive Director/CEO
viii
735 E. Carnegie Dr. Suite I 00
San Bernardino, CA 92408
909 889 0871 T
909 889 5361 F
ramscpa.net

PARTNERS
Terry P Shea. CPA
Scott W Manno, CPA. CGMA
Leena Shanbhag, CPA. MST. CGMA
Bradferd A Weleb,r. CPA. MBA. CGMA
Jenny W Liu, CPA. MST
Gardenya Duran, CPA. CGMA
Brianna Schultz, CPA. CGMA
Brenda L. Odle, CPA. MST (Partner Emeritus)

MANAGERS/ STAFF
Seong-Hyea Lee, CPA. MBA
Evelyn Mo, entin-Barcena, CPA
Veronica Hernandez, CPA
Laura Arvizu, CPA
John Maldonado, CPA. MSA
Julia Rodnguez Fuentes. CPA. MSA
Dem, Hite. CPA
Jeffrey McKennan. CPA

MEMBERS
Amencan lnslltute of
Certified Public Accountants
PCPS Tlie A/CPA All,ance
for CPA Fmns
Governmental Aud,1
Qua/11y Cenre,
California Society of
Cert1f1ed Public Accountants
dil5b Proud Member of 9 AlliottGlobalAlliance~
mm
IIIIJ

ROGERS, ANDERSON , MALODY & SCOTT, LLP
CERTIFIED PUBLIC ACCOUNTANTS. SINCE 1948
STABILITY. ACCURACY. TRUST.
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, 2023, 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 accompanying financial statements present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2023, and the respective changes in financial position 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 (GAS), 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 Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

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

To the Honorable Mayor and Members of City Council
City of Lawndale, California
2 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 and GAS 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 and GAS, 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, such as management’s discussion and analysis and budgetary comparison 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 comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

To the Honorable Mayor and Members of City Council
City of Lawndale, California
3 Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The 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 accompanying supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the identified accompanying 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 Comprehensive Financial Report Management is responsible for the other information included in the annual comprehensive financial report (ACFR). The other information comprises the introductory section and the statistical section, but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 8, 2024 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of 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
January 8, 2024

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MANAGEMENT DISCUSSION AND ANALYSIS

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City of Lawndale
Management’s Discussion and Analysis
June 30, 2023
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, 2023. 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 City does not have any business-type activities. Governmental activities include three major governmental funds: General Fund, Restricted Urban Development, and ARPA Fund, and 28 non-major governmental funds.

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
Management’s Discussion and Analysis
June 30, 2023
5 Fund Financial Statements provide information about the City’s two category of funds – governmental 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 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, Restricted Urban Development, ARPA Fund) in separate columns. Financial information for the remaining governmental funds (nonmajor funds) is combined into a single, aggregated presentation. Financial information for each of these non-major 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.

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.

City of Lawndale
Management’s Discussion and Analysis
June 30, 2023
6 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, Restricted Urban Development and ARPA Fund.

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, 2023, compared to June 30, 2022. At the end of the current fiscal year, the City reported a 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 $95.7 million as of June 30, 2023, representing an overall increase of $10.8 million, 49.9%, from June 30, 2022.

A summary of the government-wide Statement of Net Position is as follows:

Government-wide Financial Statements
Statement of Net Position (in thousands)
Governmental Activities
2023 2022 Dollar Change
Percentage
Change
Current and other assets $ 72,500 $ 61,027 $ 11,473 18.8% Capital assets 48,035 45,592 2,443 5.4%
Total assets 120,535 106,619 13,916 24.2%
Deferred Outflows 4,268 1,815 2,453 135.1%
Long-term debt/pension liability 10,539 5,208 5,331 102.4% Other liabilities 17,406 13,333 4,073 30.6%
Total liabilities 27,945 18,541 9,404 268.0%
Deferred Inflows 1,122 4,940 (3,818) -77.3%
Net position:

Net Investment in capital assets 47,680 45,194 2,486 5.5% Restricted 16,133 12,813 3,320 25.9%
Unrestricted 31,922 26,947 4,975 18.5%
Total net position $ 95,736 $ 84,954 $ 10,782 49.9%
City of Lawndale
Management’s Discussion and Analysis
June 30, 2023
7 Government-wide Financial Statements (Continued)
Analysis of Net Position
Below are the three components of net position and their respective balances as of June 30, 2023:

The largest portion of the City’s net position reflects its investment in capital assets of $47.7 million, an increase of $2.5 million or 5.5% 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 $2.5 million increase is attributed to capital asset additions and adjustments of $4.7 million less current year depreciation of $2.2 million.

The restricted net position is $16.1 million, an increase of $3.3 million, or 25.9% 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 Capital Projects, Recreation and Community Services, and Public Works.

The unrestricted net position is $31.9 million, an increase of $4.9 million, or 18.5% 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, 2023, compared to the prior year:

Government-wide Financial Statements
Statement of Activities (in thousands)
Government Activities Percentage
2023 2022 Dollar Change Change
Revenues
Program revenues:

Charges for services $ 3,621 $ 2,913 $ 708 24.3%
Operating contributions & grants 1,798 682 1,116 163.7% Capital contributions & grants 6,677 4,436 2,241 50.5%
General revenues:

Property taxes 1,823 1,729 94 5.4%
Sales taxes 7,305 7,217 88 1.2%
Motor vehicle in lieu 4,378 4,124 254 6.2%
Other taxes 3,871 3,306 565 17.1%
Other general revenues 961 742 219 29.5%
Total revenue 30,435 25,149 5,286 21.0%
Program expenses
General government 4,205 4,558 (353) -7.8%
Public safety 6,695 6,305 390 6.2%
Code enforcement and animal control 1,161 1,285 (124) -9.6% Housing 1,654 1,549 105 6.8%
Recreation & community services 850 781 69 8.9%
Public works 5,074 5,183 (109) -2.1%
Interest on long-term debt 13 14 (1) -5.8%
Total expenses 19,653 19,675 (22) -0.1%
Change in net position 10,782 5,474 5,308 97.0%
Beginning net position, as restated 84,953 79,479 5,474 6.9% Ending net position $ 95,735 $ 84,953 $ 10,782 12.7%
City of Lawndale
Management’s Discussion and Analysis
June 30, 2023
8 Analysis of Changes in Net Position
The following are major factors attributing to the net position changes between fiscal years 2022-23 and 2021-22, as shown in the table above.

Revenues for governmental activities
Total revenues for governmental activities were $30.4 million, an increase of $5.2 million, or 21.0%, from fiscal year 2021-22. The increase consisted of net increases in program revenues of $4.1 million and general revenue increase of $1.2 million. The increase in program revenues was primarily attributed to:
 Charges for services increased $708 thousand, or 24.3%, attributed to greater than anticipated fees such as community center rental fees, business license late fees, encroachment permits, industrial waste permits, vehicle impound fees.  Operating contributions and grants increased $1.1 million, or 163.7%.  Capital contributions and grants increased $2.2 million, or 50.5%.

General Revenues
General Revenues are $18.3 million, an increase of $1.3 million, or 7.1%, from fiscal year 2021-22.

The increase in general revenues was primarily attributed to:
 Property taxes in lieu of motor vehicle fees increase by $254 thousand, or 6.2%.  Other taxes increased by $565 thousand, or 17.1%.
 Other general revenues increased by $219 thousand, or 29.5%.

Expenses for governmental activities
Total expenses for governmental activities were $19.7 million for the current fiscal year, a decrease of $22 thousand, or 0.1%, compared to the prior fiscal year. Significant factors attributing to the decrease included general government, code enforcement and animal control, and public works program expense decreases of $353 thousand, $124 thousand, and $109 thousand respectively.

These decreases were offset by public safety and housing increases of $390 thousand and $105 respectively. In general the City aimed to cut costs were it was possible as these would be offset by the increase to Public safety. The increase in public safety is the increased cost of the sheriff’s contract.

City of Lawndale
Management’s Discussion and Analysis
June 30, 2023
9 The following chart displays expenses and the associated program revenues by function for fiscal year ended June 30, 2023, governmental activities (in thousands):

Revenue by Source – Governmental Activities
City of Lawndale
Management’s Discussion and Analysis
June 30, 2023
10 Expense by Function – Governmental Activities
City of Lawndale
Management’s Discussion and Analysis
June 30, 2023
11 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 nonspendable amount may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. The types of governmental funds reported by the City include the general fund, special revenue funds and capital project funds. As of June 30, 2023, the City's governmental funds reported combined fund balances of $51.7 million, an increase of $7.5 million, or 16.8% in comparison with the prior year. The components of the total fund balance are as follows:
 Non-spendable fund balance - $7.9 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 - $16.1 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 - $27.8 million, amounts that are not reported in any other category and are available for any purpose within the General Fund.

Total governmental fund revenue was $30.3 million, an increase of $5.4 million, or 21.5%, from the prior fiscal year. Expenditures totaled $22.9 million an increase of $2.9 million, or 14.3%, from the prior fiscal year. Overall, governmental fund balance increased $7.5 million, or 16.9%, compared to an increase of $4.9 million, or 7.5% in fiscal year 2022-23 compared to 2021-22.

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 $31.4 million, compared to $26.5 million as stated in fiscal year 2021-22, an increase of $4.8 million, or 18.2%. 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 non-spendable portion of the fund balance was $3.5 million, and the spendable portion was $27.9 million, which was 22% and 170%, respectively, of the total General Fund expenditures of $16.4 million, as compared to 28% and 145%, respectively, of the prior year General Fund expenditures of $15.4 million.

Total General Fund revenue increased $1.5 million, or 7.4%, from $19.8 to $21.3 million. Significant factors attributed to the net increase included taxes, charges for services, use of money and property, and fines and forfeitures, with increases of $691, $382, $401 and $396 thousand, respectively, compared to the prior year. These increases were offset by a $570 thousand decrease to miscellaneous revenues.

City of Lawndale
Management’s Discussion and Analysis
June 30, 2023
12  Sales and use tax increased by $89 thousand, property taxes increased by $93 thousand, Motor vehicle in-lieu tax increased by $254 thousand, transient occupancy tax increased by $93 thousand due to increased hotel occupancy likely due to the end of COVID travel restrictions, and utility user tax increased by $324 thousand mainly due to the increased cost of utilities.
 Parking bail – DMV increased $48 thousand; Case Fines/Payments increased $419 thousand mainly due to the settlement of a large class action case initiated by the City of Long Beach. Lawndale received over $333 thousand.
 Encroachment permit fees decreased $32 thousand due to the overall slowdown of the economy, Business License Late Fees decreased $19 thousand as a large amount was received in the prior year and more businesses are paying on time.

Total General Fund expenditures increased $1 million, or 6.6%, from $15.3 to $16.3 million.

Significant factors attributed to the net increase included public safety with a $402 thousand increase, an increase of $187 thousand in recreation and community services, increase of $225 thousand in housing and an increase in public works of $320 thousand as compared to the prior year. These increases were partially offset by decreases in capital outlay of $330 thousand, a decrease from the prior year.
 The $402 thousand increase in public safety is due to the increased sheriff’s costs.  The $187 thousand increase in recreation and community services was due to the reopening of programs due to cancelations with pandemic from prior year. Additional parttime staff were hired as well as an overall increase in salary and benefits.  The increase of $225 thousand in housing is mainly due to increased salary and benefit costs.
 The $320 thousand increase in public works is also mainly due to increased salary and benefit costs.
 The $330 thousand decrease in capital outlay is primarily attributed to the ongoing construction projects and completion of major street projects in the previous year.

City of Lawndale
Management’s Discussion and Analysis
June 30, 2023
13 The other Major Governmental Funds include Restricted Urban Development and the ARPA Fund.

There were no significant changes in the Restricted Urban Development fund. ARPA funds had expenditures of $1 million which were spent on capital items, including city vehicles and infrastructure repair.

Nonmajor Governmental Funds
Non-major governmental funds had a net change in fund balance of $2.9 million, or 24.7%, increase from prior year. Compared to prior year non-major governmental fund operations, revenue and expenditures increased $2.9 million and $762 thousand, respectively. The revenue increase is mainly due to increased Prop C 25 revenues of $1.6 million and an increase in Measure R revenues of $671 thousand. The expenditure increase is due to increases in Measure M of $371 thousand, Prop C25 of $858 thousand and Measure R of $1.1 million. These increases were offset by decrease to expenditures in SB1 by $421 thousand and Prop C Transit capital by $1.2 million.

GENERAL FUND BUDGET
The original budget compared to the final General Fund budget is presented in the Budgetary Comparison Schedule included in the Required Supplementary Information Section. General Fund revenue was originally budgeted at $18.3 million and $26.6 million of budgetary fund balance was available, resulting in $44.9 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 $19 million (including transfers), an increase of $682 thousand, or 3.5%. Significant revenue budget increases were attributed to taxes, Use of money and property, and fines and forfeitures.

City of Lawndale
Management’s Discussion and Analysis
June 30, 2023
14  Taxes increased mainly due to increased sales tax due to a surge in sales combined with higher prices from local gasoline stations.
 Use of money and property budget was increased because we invested in higher yielding investments as a result of the continued rate hikes by the federal reserve throughout the year.
 Fines and forfeitures increased due to the closure and settlement of 2 cases that closed during the year for which the City collected $80 thousand.

CAPITAL ASSETS
Capital assets, net of depreciation, increased $2.4 million, from $45.6 million on July 1, 2022, to $48 million on June 30, 2023. The increase is attributed to a depreciation expense of $2.2 million offset by $4.6 million of additions. The additions were in construction in progress (ongoing construction on Artesia from Redondo Beach Blvd/Prairie Ave., City Hall and Public Works roof repair, HVAC project at the community center, Street Improvement project 21-22, and City-Wide Sign replacement). For more information, see Capital Assets Note 7 in the Notes to Financial Statements.

LONG-TERM LIABILITIES
Total long-term liabilities city-wide equal $16.6 million, an increase of $5.5 million from fiscal year 2021-22 due to worse than expected rate of returns by CalPers. Additional information is presented in Notes 8-12.

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.

THIS PAGE INTENTIONALLY LEFT BLANK
City of Lawndale
Statement of Net Position
June 30, 2023
See accompanying notes to financial statements.
15 Governmental
Activities
Assets
Cash and investments $ 49,634,328
Receivables:

Accounts 4,596,496
Grants 25,773
Accrued interest 187,686
Notes and loans 266,431
Agreements with Successor Agency 17,130,490
Prepaid costs 23,774
Land held for development 634,983
Capital assets not being depreciated 11,765,697
Capital assets, net of depreciation 36,268,961
Total Assets 120,534,619
Deferred Outflows of Resources
Pension related 4,267,760
Total Deferred Outflows of Resources 4,267,760
Liabilities
Accounts payable 2,757,141
Accrued liabilities 191,336
Accrued interest 4,912
Deposits payable 1,783,737
Unearned revenue 6,600,488
Noncurrent liabilities:

Due within one year
Long-term debt 45,748
Compensated absences 328,299
Due in more than one year
Long-term debt 308,532
Compensated absences 353,809
Total pension liability 10,184,340
Total OPEB liability 5,386,566
Total Liabilities 27,944,908
Deferred Inflows of Resources
Pension related 615,923
OPEB related 505,837
Total Deferred Inflows of Resources 1,121,760
Net Position
Net investment in capital assets 47,680,378
Restricted for:

Community development projects 160,653
Public safety 276,649
Parks and recreation 3,509,229
Public works 7,986,206
Capital projects 1,477,744
Air quality 222,737
Code enforcement and animal control 209,366
Housing 2,290,270
Unrestricted 31,922,479
Total Net Position $ 95,735,711
City of Lawndale
Statement of Activities
For the Fiscal Year Ended June 30, 2023
See accompanying notes to financial statements.
16 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 $ 4,204,502 $ 2,196,050 $ 1,084,440 $ - $ (924,012) Public safety 6,695,437 - 165,271 - (6,530,166)
Code enforcement and animal control 1,161,300 - - - (1,161,300) Housing 1,653,658 1,425,446 - - (228,212)
Recreation and community services 850,352 - 8,136 - (842,216) Public works 5,074,402 - 540,577 6,677,120 2,143,295
Interest on long-term debt 13,193 - - - (13,193)
Total Governmental Activities $ 19,652,844 $ 3,621,496 $ 1,798,424 $ 6,677,120 (7,555,804) General Revenues
Taxes:

Property taxes, levied for general purpose 1,822,569
Property taxes in lieu of vehicle license fees 4,378,474 Transient occupancy taxes 793,777
Sales taxes 7,305,321
Franchise taxes 932,970
Utility users tax 2,143,996
Use of money and property 694,577
Miscellaneous 265,974
Total General Revenues 18,337,658
Change in Net Position 10,781,854
Net Position, Beginning of Year, as Restated 84,953,857 Net Position, End of Year $ 95,735,711
City of Lawndale
Balance Sheet
Governmental Funds
June 30, 2023
See accompanying notes to financial statements.
17 Restricted Nonmajor Total
Urban Governmental Governmental
General Development ARPA Fund Funds Funds
Assets
Cash and investments 28,008,067 $ 1,477,744 $ 6,972,897 $ 13,175,620 $ 49,634,328 $ Receivables:

Accounts 2,100,366 - - 2,496,130 4,596,496
Grants - - - 25,773 25,773
Accrued interest 187,686 - - - 187,686
Notes and loans - - - 266,431 266,431
Agreements with Successor Agency 8,330,305 8,800,185 - - 17,130,490 Prepaid costs 23,774 - - - 23,774
Due from other funds 1,178,999 - - - 1,178,999
Land held for development 147,900 - - 487,083 634,983
Total Assets 39,977,097 $ 10,277,929 $ 6,972,897 $ 16,451,037 $ 73,678,960 $ Liabilities, Deferred Inflows of Resources,
and Fund Balances
Liabilities
Accounts payable $ 1,705,364 $ - $ 467,958 $ 583,819 $ 2,757,141 Accrued liabilities 142,854 - - 48,482 191,336
Deposits payable 1,783,737 - - - 1,783,737
Due to other funds - - - 1,178,999 1,178,999
Unearned revenue - - 6,600,488 - 6,600,488
Total Liabilities 3,631,955 - 7,068,446 1,811,300 12,511,701 Deferred Inflows of Resources
Unavailable revenues 4,976,534 4,442,878 - - 9,419,412
Total Deferred Inflows of Resources 4,976,534 4,442,878 - - 9,419,412 Fund Balances
Nonspendable:

Prepaid costs 23,774 - - - 23,774
Land held for development 147,900 - - - 147,900
Agreements with Successor Agency 3,353,771 4,357,307 - - 7,711,078 Restricted for:

Community development projects - - - 160,653 160,653
Public safety - - - 276,649 276,649
Recreation and community services - - - 3,509,229 3,509,229 Public works - - - 7,986,206 7,986,206
Capital projects - 1,477,744 - - 1,477,744
Air quality - - - 222,737 222,737
Municipal services - - - 209,366 209,366
Housing - - - 2,290,270 2,290,270
Unassigned 27,843,163 - (95,549) (15,373) 27,732,241
Total Fund Balances 31,368,608 5,835,051 (95,549) 14,639,737 51,747,847 Liabilities, Deferred Inflows of
Resources, and Fund Balances 39,977,097 $ 10,277,929 $ 6,972,897 $ 16,451,037 $ 73,678,960 $ Special Revenue Fund
City of Lawndale
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position June 30, 2023
See accompanying notes to financial statements.
18 Total Fund Balances - Governmental Funds $ 51,747,847 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. 48,034,658 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 $ (354,280)
Net pension liability (10,184,340)
Total OPEB liability (5,386,566)
Compensated absences (682,108) (16,607,294)
Deferred outflows and inlows of resources related to pensions have not been reported in the governmental funds:

Pension related deferred outflows of resources 4,267,760 Pension related deferred inflows of resources (615,923) 3,651,837 Accrued interest payable for the current portion of interest due on notes that has not been reported in the governmental funds. (4,912)
Deferred outflows and inflows of resources related to OPEB have not been reported in the governmental funds:

OPEB related deferred inflows of resources (505,837)
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. 9,419,412
Net Position of Governmental Activities $ 95,735,711
City of Lawndale
Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds
For the Fiscal Year Ended June 30, 2023
See accompanying notes to financial statements.
19 Restricted Nonmajor Total
Urban Governmental Governmental
General Development ARPA Fund Funds Funds
Revenues
Taxes $ 12,806,915 $ - $ - $ - $ 12,806,915
Licenses and permits 773,789 - - - 773,789
Intergovernmental 4,378,474 - 1,084,440 7,745,914 13,208,828 Charges for services 1,476,638 - - 38,599 1,515,237
Use of money and property 439,794 6,529 (95,549) 86,887 437,661 Fines and forfeitures 1,332,596 - - - 1,332,596
Miscellaneous 126,258 - - 121,382 247,640
Total Revenues 21,334,464 6,529 988,891 7,992,782 30,322,666 Expenditures
Current:

General government 4,300,732 - 11,575 11,481 4,323,788
Public safety 6,569,586 - - 122,100 6,691,686
Code enforcement and animal control 1,272,056 - - - 1,272,056 Housing 971,801 - - 158,019 1,129,820
Recreation and community services 786,506 - - 141,997 928,503 Public works 2,132,986 - - 2,220,616 4,353,602
Capital outlay 285,522 - 1,072,865 2,750,965 4,109,352
Debt service:

Principal retirement 44,266 - - - 44,266
Interest and fiscal charges 13,806 - - - 13,806
Total Expenditures 16,377,261 - 1,084,440 5,405,178 22,866,879 Excess (Deficiency) of Revenues
Over (Under) Expenditures 4,957,203 6,529 (95,549) 2,587,604 7,455,787 Other Financing Sources (Uses)
Transfers in - - - 319,865 319,865
Transfers out (155,729) (164,136) - - (319,865)
Proceeds from sale of capital assets 9,358 - - - 9,358
Total Other Financing Sources (Uses) (146,371) (164,136) - 319,865 9,358 Net Change in Fund Balances 4,810,832 (157,607) (95,549) 2,907,469 7,465,145 Fund Balances
Beginning of year 26,557,776 5,992,658 - 11,732,268 44,282,702 End of Year $ 5,835,051 31,368,608 $ (95,549) $ 14,639,737 $ 51,747,847 $ Special Revenue Fund
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, 2023
See accompanying notes to financial statements.
20 Net Change in Fund Balances - Total Governmental Funds $ 7,465,145 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 $ 4,654,548
Depreciation (2,212,164) 2,442,384
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 1,039,204
OPEB related net adjustments (117,984) 921,220
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 44,266
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 (194,448)
Change in accrued interest 613 (193,835)
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. 102,674
Change in Net Position of Governmental Activities $ 10,781,854 City of Lawndale
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2023
See accompanying notes to financial statements.
21 Private-Purpose
Custodial Fund Trust Funds
Lawndale
PRSSC Successor
Fund Agency
Assets
Cash and investments 37,326 $ 1,855,701 $
Receivables:

Accrued interest - -
Notes and loans - -
Firework deposits 500
Restricted assets:

Cash and investments held with fiscal agents - 2,326,550 Total Assets 37,826 4,182,251
Liabilities
Accrued liabilities - 2,010
Accrued interest - 401,307
Long-term liabilities:

Due in one year
Tax allocation bonds - 370,000
Direct borrowings - 1,682,959
Due in more than one year
Tax allocation bonds - 16,660,709
Direct borrowings - 16,318,139
Total Liabilities - 35,435,124
Net Position (Deficit)
Held in trust for other purposes 37,826 (31,252,873)
Total Net Position (Deficit) $ 37,826 $ (31,252,873)
City of Lawndale
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Fiscal Year Ended June 30, 2023
See accompanying notes to financial statements.
22 Private-Purpose
Custodial Fund Trust Funds
Lawndale
PRSSC Successor
Fund Agency
Additions
Taxes - $ 3,279,488 $
Interest income 545 49,394
Total Additions 545 3,328,882
Deductions
Administrative expenses - 58,791
Contractual services - 11,409
Interest and fiscal charges - 1,236,436
Transfer to other governments 4,298 -
Total Deductions 4,298 1,306,636
Changes in Net Position (3,753) 2,022,246
Net Position (Deficit), Beginning of Year 41,579 (33,275,119) Net Position (Deficit), End of Year $ 37,826 $ (31,252,873) City of Lawndale
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2023
23 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, 2023
24 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, 2023
25 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, 2023
26 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, 2023
27 Note 1: Summary of Significant Accounting Policies (Continued) b. Measurement Focus, Basis of Accounting, and Basis of Presentation (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, 2023
28 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.

The ARPA Fund is used to account for funds related to the State and Local Fiscal Recovery Act.

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
29 Note 1: Summary of Significant Accounting Policies (Continued) c. Fund Classification (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, 2023
30 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, 2023
31 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, 2023
32 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 assets 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 assets 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, 2023
33 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. Pensions
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, 2021
Measurement Date (MD) June 30, 2022
Measurement Period (MP) July 1, 2021 to June 30, 2022
City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
34 Note 1: Summary of Significant Accounting Policies (Continued) l. Pensions (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, 2021
Measurement Date (MD) June 30, 2023
Measurement Period (MP) July 1, 2022 to June 30, 2023
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, 2022
Measurement Date: June 30, 2023
Measurement Period: July 1, 2022 to June 30, 2023
City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
35 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, 2023
36 Note 1: Summary of Significant Accounting Policies (Continued) n. Net Position and Fund Balance (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, 2023
37 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.

The remainder of this page has been left intentionally blank.

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
38 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, 2023:

Deficit Fund
Balance
Governmental Funds:

Major Governmental Funds:

ARPA $ (95,549)
Non-major Governmental Funds:

Justice Assistance Grant (9,873)
Prop 68 2018 Parks Bond Act (3,857)
TDA Article 3 (Metro) (1,643)
Deficits in the in the funds listed above 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:

Groundwater Sustainability (AB 939) 186,451 $ $ 187,165 $ (714) City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
39 III. DETAILED NOTES ON ALL FUNDS
Note 3: Cash and Investments
Summary of Cash and Investments
Cash and investments as of June 30, 2023 are classified in the accompanying financial statements as follows:

Statement of Net Position:

Cash and investments 49,634,328 $
Fiduciary Funds:

Cash and investments 1,893,027
Cash and investments held with fiscal agents 2,326,550
Total 53,853,905 $
Cash and investments as of June 30, 2023, consist of the following:

Cash on hand $ 1,151
Deposits with financial institutions 22,019,587
Restricted cash held with fiscal agents 2,326,550
Investments 29,506,617
Total $ 53,853,905
Deposits
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.

As of June 30, 2023, 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.

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
40 Note 3: Cash and Investments (Continued)
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 $75 million 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.

Investments as of June 30, 2023 consist of the following:

Fair Value
Investments Authorized by CA Government Code/City Investment Policy Local Agency Investment Fund (LAIF) $ 23,542,046
Certificates of deposit 4,969,310
Federal agency issues 995,261
Total Investments $ 29,506,617
City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
41 Note 3: Cash and Investments (Continued)
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. Currently, LAIF does not have an investment rating. LAIF has a minimum $5,000 transaction amount in increments of $1,000 with a maximum of 15 transactions (combination of deposits and withdrawals) per month. LAIF required a one-day prior notice for deposits and withdrawals of $10 million or more.

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.

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.

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
42 Note 3: Cash and Investments (Continued)
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 has US Government Securities, which are Level 2 investments, of $995,261 as of June 30, 2023. The remaining investments are not 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. The City has certificates of deposit that are over 60 months, which is a current violation of the investment policy.

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 13 to 24 25 to 60 More than 60
Investment Type Fair Value or Less Months Months Months Investments
Local Agency Investment Fund (LAIF) 23,542,046 $ 23,542,046 $ - $ $ - $ - Certificates of deposit 4,969,310 974,749 479,326 2,410,305 1,104,930 Federal agency issues 995,261 - 995,261 - -
Total Investments $ 24,516,795 29,506,617 $ 479,326 $ $ 3,405,566 $ 1,104,930 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 23,542,046 $ 23,542,046 $ Certificates of deposit Not Rated 4,969,310 4,969,310
Federal agency issues Not Rated 995,261 995,261
Total Investments 29,506,617 $ 29,506,617 $
City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
43 Note 3: Cash and Investments (Continued)
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, 2023. As of June 30, 2023, no City investments were held by the same broker-dealer (counterparty) that was used by the City to buy the securities.

Note 4: Notes and Loans Receivable
The City's outstanding loans receivable as of June 30, 2023, are as follows:

Nonmajor Governmental Funds:

Housing rehabilitation loan program $ 266,431
Total $ 266,431
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, 2023, the outstanding receivable balance for the housing rehabilitation loan program was $266,431.

The balance of the forgivable loans receivable was $72,000 at June 30, 2023 and have been fully allowed for.

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
44 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 14 to the financial statements for additional information.

As of June 30, 2023, agreements with the Successor Agency receivable were reported in the accompanying financial statements as follows:

Accrued Balance at
Principal Interest June 30, 2023
General Fund
2000 Cooperation Agreement 1,713,848 $ 2,578,130 $ 4,291,978 $ 2001 Cooperation Agreement 1,657,779 2,380,548 4,038,327 Subtotal General Fund 3,371,627 4,958,678 8,330,305
Restricted Urban Development
2000 Financing Agreement 4,357,307 4,442,878 8,800,185
Total 7,728,934 $ 9,401,556 $ 17,130,490 $
City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
45 Note 6: lnterfund Receivables, Payables and Transfers a. Due To/From Other Funds:

As of June 30, 2023, the City had the following due to/from other funds:

Due from
Other Funds
Due to Other Funds General Fund
Non-major Governmental Funds 1,178,999 $
Short-term loans from the General Fund to the Non-major Governmental Funds were made to eliminate short-term cash deficits.
b. Transfers ln/Out:

Transfers in and out for the year ended June 30, 2023, were as follows:

Transfers Out
Restricted
General Urban
Transfers In Fund Development Total
Non-Major Governmental Funds $ 155,729 $ 164,136 $ 319,865 In fiscal year 2023, the General Fund and the Restricted Urban Development transferred $155,729 and $164,136, respectively, to the Lawndale Housing Authority to provide the 20% housing set aside funds required by the Successor Agency loans.

The remainder of this page has been left intentionally blank.

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
46 Note 7: Capital Assets
A summary of changes in capital assets activity for the year ended June 30, 2023, is as follows:

Construction
Balance at Placed Balance at
June 30, 2022 Additions in Service Disposals June 30, 2023 Capital assets not depreciated:

Land $ 5,215,937 $ - $ - $ - $ 5,215,937
Construction in progress 5,995,133 4,327,600 (3,772,973) - 6,549,760 Total capital assets not being depreciated 11,211,070 4,327,600 (3,772,973) 11,765,697 - Capital assets being depreciated:

Building and structures 18,191,094 - - 18,191,094 -
Improvements other than buildings 1,025,197 - - - 1,025,197 Vehicles, machinery and equipment 2,870,796 326,948 - (51,186) 3,146,558 Infrastructure 40,522,375 - 3,772,973 44,295,348 -
Total capital assets being depreciated 62,609,462 326,948 3,772,973 (51,186) 66,658,197 Accumulated depreciation:

Building and structures 8,651,442 569,293 - - 9,220,735 Improvements other than buildings 559,767 61,193 - - 620,960 Vehicles, machinery and equipment 2,265,999 142,757 - (51,186) 2,357,570 Infrastructure 16,751,050 1,438,921 - 18,189,971 -
Total accumulated depreciation 28,228,258 2,212,164 - (51,186) 30,389,236 Total capital assets being depreciated, net 34,381,204 (1,885,216) 3,772,973 36,268,961 - Total capital assets, net $ 45,592,274 $ 2,442,384 $ - $ 48,034,658 - $ Adjustments in the current year were related to various items being removed from the City’s capital asset listing that were erroneously included in prior year balances, and the addition of two projects that were erroneously expensed in the prior year.

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, 2023, is as follows:

General government $ 120,372
Public safety 3,751
Housing 594,255
Recreation and community services 3,750
Public works 1,490,036
Total $ 2,212,164
City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
47 Note 8: Long-Term Debt
The following is a summary of changes in long-term debt for the year ended June 30, 2023:

Balance at Balance at Due Within
June 30, 2022 Additions Deletions June 30, 2023 One Year Direct borrowings:

Facility and site lease note 398,546 $ $ 44,266 - $ $ 354,280 $ 45,748 Total $ 398,546 $ 44,266 - $ $ 354,280 $ 45,748
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).

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, 2023, are as follows:

Year Ended Facility and Site Lease Note
June 30, Principal Interest Total
2024 $ 45,748 11,102$ 56,850$
2025 47,281 9,544 56,825
2026 48,865 7,933 56,798
2027 50,502 6,269 56,771
2028 52,194 5,035 57,229
2029-2030 109,690 4,201 113,891
Total 354,280 $ 44,084$ 398,364$
City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
48 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, 2023:

Balance at Balance at Due in
June 30, 2022 Additions Deletions June 30, 2023 One Year Compensated Absences $ 487,660 $ 219,255 $ 24,807 $ 682,108 $ 328,299 The remainder of this page has been left intentionally blank.

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
49 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 124 California public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq. The purpose of the Authority is to arrange and administer programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group purchased insurance for property and other lines of coverage. The California JPIA began covering claims of its members in 1978. Each member government has an elected official as its representative on the Board of Directors. The Board operates through a nine-member Executive Committee. b. Primary Self-Insurance Programs of 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 also have a $50 million per occurrence limit. The coverage structure is composed of a combination of pooled self-insurance, reinsurance, and excess insurance. Additional information concerning the coverage structure is available on the Authority’s website: https://cjpia.org/coverage/risksharing-pools/.

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
50 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 $75,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $75,000 to $200,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $200,000 to statutory limits are distributed based on the outcome of cost allocation within the first and second loss layers.

For 2022-23 the Authority’s pooled retention is $1 million per occurrence, with reinsurance to statutory limits under California Workers’ Compensation Law.

Employer’s Liability losses are pooled among members to $1 million. Coverage from $1 million to $5 million is purchased through reinsurance policies, and Employer’s Liability losses from $5 million to $10 million are pooled among members. c. Purchased 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 $250,000 deductible.

The Authority has an aggregate limit of $20 million.

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 $29,714,584. 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, 2023
51 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 2022-23.

Note 11: Defined Benefit Pension Plans
Summary of Pension Plans
Net Pension
Liability
Deferred
Outflows
Deferred
Inflows
Pension
(Income)/
Expense
CalPERS Plan 10,061,592 $ 4,210,820 $ (615,923) $ 15,918 $ PARS Plan 122,748 56,940 - 27,897
Totals $ 4,267,760 10,184,340 $ (615,923) $ $ 43,815
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, 2023
52 Note 11: Defined Benefit Pension Plans (Continued)
a. General Information about the Pension Plan (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, 2023 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 - 67 52 - 67
Monthly benefits, as a % of eligible compensation 1.426% to 2.418% 1.000% to 2.500% Required employee contribution rates 7.000% 6.750%
Required employer contribution rates 10.870% 7.470%
City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
53 Note 11: Defined Benefit Pension Plans (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 are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability.

The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. 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, 2023 were $1,052,023. The actual employer payments of $947,169 made to CalPERS by the City during the measurement period ended June 30, 2022 differed from the City’s proportionate share of the employer’s contributions of $1,457,009 by $509,840, 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 of the Plan is measured as of June 30, 2022, using an annual actuarial valuation as of June 30, 2021 rolled forward to June 30, 2022 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, 2023
54 Note 11: Defined Benefit Pension Plans (Continued)
b. Net Pension Liability (Continued)
Actuarial Methods and Assumptions Used to Determine Total Pension Liability The collective total pension liability for the June 30, 2022 measurement period was determined by an actuarial valuation as of June 30, 2021, with update procedures used to roll forward the total pension liability to June 30, 2022. The collective total pension liability was based on the following assumptions:

Valuation Date June 30, 2021
Measurement Date June 30, 2022
Actuarial Cost Method Entry Age Actuarial Cost Method
Asset Valuation Method Fair Value of Assets
Actuarial Assumptions:

Discount Rate 6.90%
Inflation 2.30%
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 2.30% until Purchasing Power Protection Allowance floor on purchasing power applies, 2.30% thereafter
(1) The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study for the period from 2001 to 2019. Pre-retirement and Post-retirement mortality rates include generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from November 2021 that can be found on the CalPERS website.

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

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

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
55 Note 11: Defined Benefit Pension Plans (Continued)
b. Net Pension Liability (Continued)
The expected real rates of return by asset class are as follows:

Assumed Asset Real Return
Asset Class1 Allocation Years 1 - 101,2
Global equity - cap-weighted 30.00% 4.54%
Global Equity - non-cap-weighted 12.00% 3.84%
Private equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed securities 5.00% 0.50%
Investment grade corporates 10.00% 1.56%
High yield 5.00% 2.27%
Emerging market debt 5.00% 2.48%
Private debt 5.00% 3.57%
Real assets 15.00% 3.21%
Leverage -5.00% -0.59%
2 An expected inflation of 2.30% 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
Effective with the June 30, 2021, valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the longterm expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions.

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
56 Note 11: Defined Benefit Pension Plans (Continued)
b. Net Pension Liability (Continued)
Discount Rate
The discount rate used to measure the total pension liability for PERF C was 6.90%.

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

Subsequent Events
On July 12, 2021, CalPERS reported a preliminary 21.3% net return on investments for fiscal year 2020-21. Based on the thresholds specified in CalPERS Funding Risk Mitigation policy, the excess return of 14.3% prescribes a reduction in investment volatility that corresponds to a reduction in the discount rate used for funding purposes of 0.20%, from 7.00% to 6.80%. Since CalPERS was in the final stages of the four-year Asset Liability Management (ALM) cycle, the board elected to defer any changes to the asset allocation until the ALM process concluded, and the board could make its final decision on the asset allocation in November 2021.

On November 17, 2021, the board adopted a new strategic asset allocation. The new asset allocation along with the new capital market assumptions, economic assumptions and administrative expense assumption support a discount rate of

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

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.

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
57 Note 11: Defined Benefit Pension Plans (Continued)
c. Proportionate Share of Net Pension Liability
The following table shows the City’s proportionate share of the Plan’s 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: 6/30/2021 (VD) $ 36,251,710 $ 31,588,037 $ 4,663,673 Balance at: 6/30/2022 (MD) 38,150,789 28,089,197 10,061,592 Net Changes during 2021-22 $ 1,899,079 $ (3,498,840) $ 5,397,919 Valuation Date (VD), Measurement Date (MD)
Increase (Decrease)
The City’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, 2021 and 2022 measurement dates was as follows:

Proportionate Share - June 30, 2021 0.24561%
Proportionate Share - June 30, 2022 0.21503%
Change - Increase (Decrease) -0.03058%
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 6.9 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 (5.9 percent) or 1 percentage-point higher (7.9 percent) than the current rate:

Discount Rate - 1% Current Discount Discount rate + 1%
(5.9%) (6.9%) (7.9%)
Plan's Net Pension
Liability 15,262,232 $ 10,061,592 $ 5,782,755 $
City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
58 Note 11: Defined Benefit Pension Plans (Continued)
c. Proportionate Share of Net Pension Liability (Continued) Amortization of Deferred Outflows and Deferred Inflows of Resources Under GASB 68, gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time.

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

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

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).

The EARSL for PERF C for the measurement period ending June 30, 2022 is 3.7 years, which was obtained by dividing the total service years of 574,665 (the sum of remaining service lifetimes of the active employees) by 153,587 (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, 2021), the City’s net pension liability was $4,663,673. For the measurement period ending June 30, 2022 (the measurement date), the City incurred a pension expense of $15,918.

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
59 Note 11: Defined Benefit Pension Plans (Continued)
d. Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions (continued)
As of June 30, 2023, 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 66,728 $ - $
Changes of assumptions 1,031,020 -
Net difference between projected and
actual earnings on pension plan
investments 1,843,016 -
Changes in employer's proportion 218,033 -
Differences between the employer’s
contributions and the employer’s
proportionate share of contributions - (615,923)
Pension contributions subsequent to
measurement date 1,052,023 -
Total $ 4,210,820 $ (615,923)
The amounts above are net of outflows and inflows recognized in the 2021-22 measurement period expense. Contributions subsequent to the measurement date of $1,052,023 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
Fiscal Year
Ended
June 30:

Deferred
Outflows/(Inflows)
of Resources
2024 582,674 $
2025 527,437
2026 305,512
2027 1,127,251
2028 -
Thereafter -
e. Payable to the Pension Plan
At June 30, 2023, 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, 2023
60 Note 11: Defined Benefit Pension Plans (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, 2023, the following employees were covered by the benefit terms of the Plan:

Description Members
Actives -
Terminated vested and other inactives -
Retirees and beneficiaries 6
Total 6
City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
61 Note 11: Defined Benefit Pension Plans (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. The City contributed $30,997 during fiscal year 2023 to the Plan.

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, 2023 (the measurement date), the total pension liability was determined by rolling forward the June 30, 2022 total pension liability. The June 30, 2023 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, 2023
62 Note 11: Defined Benefit Pension Plans (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 June 30, 2023 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 T-Bills 4.56% 0.51% 0.49%
US Core Fixed Income Bloomberg Barclays Aggregate 47.61% 2.07% 1.93% US Equity Market Russell 3000 TR USD 36.54% 5.56% 3.90% Foreign Developed Equity MSCI EAFE NR USD 6.01% 6.89% 5.07% Emerging Markets Equity MSCI EM NR USD 3.70% 9.58% 6.18% US REITs FTSE Nareit All Equity REITs TR 1.58% 6.96% 4.74% Assumed Inflation - Mean 2.32% 2.32%
Assumed Inflation - Standard Deviation 1.42% 1.42%
Portfolio Real Mean Return 3.92% 3.47%
Portfolio Nominal Mean Return 6.24% 5.88%
Portfolio Standard Deviation 8.81%
Long-Term Expected Rate of Return 6.50%
Change in Assumptions
There were no changes of assumptions.

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, 2023
63 Note 11: Defined Benefit Pension Plans (Continued)
b. Net Pension Liability (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 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, 2022 $ 845,215 $ 699,931 $ 145,284 Changes for the year:

Interest on the total pension liability 52,912 - 52,912 Benefit payments (63,381) (63,381) -
Employer Contributions - 30,997 (30,997)
Net investment income - 48,035 (48,035)
Administrative expenses - (3,584) 3,584
Balance as of June 30, 2023 $ 834,746 $ 711,998 $ 122,748 Increase (Decrease)
City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
64 Note 11: Defined Benefit Pension Plans (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 206,947 $ 122,748 $ 50,868 $
d. Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions
As of the start of the measurement period, July 1, 2022, the net pension liability was $145,284. For the measurement period ending June 30, 2023, the City incurred a pension expense of $27,897 for the PARS Plan. A complete breakdown of the pension expense is as follows:

Description Amount
Interest on total pension liability $ 52,912
Administrative expenses 3,584
Expected investment return of net
investment expenses (44,345)
Recognition of deferred inflows/outflows
of resources:

Investment gains or losses 15,746
Pension expense $ 27,897
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, 2023
65 Note 11: Defined Benefit Pension Plans (Continued)
d. Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
As of June 30, 2023, 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 $ 56,940 $ -
Total $ 56,940 $ -
Amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in future pension expense as follows:

Measurement Period
Fiscal Year Ended
June 30
Deferred Inflows of
Resources
2024 15,306 $
2025 10,601
2026 31,771
2027 (738)
2028 -
Thereafter -
For the fiscal year ended June 30, 2023, the City recognized pension expense of $43,815.

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, 2023
66 Note 12: Other Post-Employment Benefits Plan (Continued) Employees Covered
As of the June 30, 2023, actuarial valuation, membership of the plan consisted of the following:

Participating active employees 45
Inactive employees receiving benefits 26
Inactive employees entitled to, but not receiving benefits - Total number of participants 71
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, 2023, the City's cash contributions were $238,584.

Total OPEB Liability
The City's total OPEB liability was measured as of June 30, 2023 and was determined by an actuarial valuation dated June 30, 2022, based on the following actuarial methods and assumptions:

Actuarial Assumptions June 30, 2023 Measurement Date
Actuarial Valuation Date June 30, 2022
Contribution Policy No pre-funding
Discount Rate 3.86% in 2023
General Inflation 2.30%
Mortality, Retirement,
Disability, Termination
Based on CalPERS 2017 CalPERS Mortality for
Miscellaneous and School Employees
Salary increases 2.80% per year
Medical Trend 4% per year
Healthcare Participation Current Actives:
100%
Current Retirees:
100%
City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
67 Note 12: Other Post-Employment Benefits Plan (Continued) Change of Assumptions
The discount rate changed from 3.54% to 3.86%.

Discount Rate
The discount rate used to measure the total OPEB liability was 3.54%. The discount rate is based on the most recent municipal 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, 2022
(6/30/22 measurement date) $ 5,412,180
Changes recognized for the measurement period:

Service cost 267,581
Interest 196,877
Contributions – employer -
Benefit payments (238,584)
Experience (gains)/losses (1,136)
Change in assumptions (250,352)
Net changes (25,614)
Balance at June 30, 2023
(6/30/23 measurement date) $ 5,386,566
City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
68 Note 12: Other Post-Employment Benefits Plan (Continued) 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, 2023:
1% Decrease
(2.86%)
Current Discount
Rate (3.86%)
1% Increase
(4.86%)
Total OPEB Liability $ 6,229,767 $ 5,386,566 $ 4,703,879 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, 2023:
1% Decrease
Current
Healthcare Cost
Trend Rates 1% Increase
Total OPEB Liability $ 4,564,051 $ 5,386,566 $ 6,439,576 OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2023, the City recognized OPEB expense of $356,568. A complete breakdown of OPEB expense is as follows:

Description Amount
Service cost $ 267,581
Interest cost 196,877
Recognition of experience (gains)/loss deferrals (53,773) Recognition of assumption change deferrals (54,117)
Total OPEB expense $ 356,568
As of fiscal year ended June 30, 2023, 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 - $ $ (257,247) Changes of assumptions - (248,590)
Total - $ $ (505,837)
City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
69 Note 12: Other Post-Employment Benefits Plan (Continued) Amount reported as deferred outflows related to OPEB will be recognized in future OPEB expense as follows:

Year
Ended
June 30,
Deferred
Outflows/
Inflows of
Resources
2024 (107,890) $
2025 (107,890)
2026 (107,890)
2027 (115,112)
2028 (131,946)
Thereafter 64,891
Note 13: Commitments and Contingencies
As of June 30, 2023, 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: 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.

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
70 Note 14: Successor Agency to the Former Lawndale Redevelopment Agency (Continued) a. Cash and Investments
As of June 30, 2023, cash and investments were reported in accompanying financial statements as follows:

Lawndale
Successor
Agency
Cash and investments $ 1,855,701
Cash and investments held with fiscal agents 2,326,550
Total $ 4,182,251
b. Long-Term Debt
A description of long-term debt outstanding of the Successor Agency as of June 30, 2023, is as follows:

Balance at Balance at Due Within
June 30, 2022 Additions Deletions June 30, 2023 One Year Tax Allocation Bonds
Tax Allocation Bonds, Series 2009 17,470,000 $ $ 350,000 - $ $ 17,120,000 $ 370,000 Bonds Discount (93,525) (4,234) - (89,291) -
Total Tax Allocation Bonds 17,376,475 345,766 - 17,030,709 370,000 Direct Borrowings
Tax Allocation Loan Agreement Note 951,123 80,515 - 870,608 83,453 Agreements with City 18,473,958 255,858 1,599,326 17,130,490 1,599,506 Total Direct Borrowings 19,425,081 255,858 1,679,841 18,001,098 1,682,959 Total $ 36,801,556 $ 255,858 $ 2,025,607 $ 35,031,807 $ 2,052,959 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, 2023, the outstanding principal on the bonds was $17,120,000, and relating unamortized discount was $89,291.

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
71 Note 14: Successor Agency to the Former Lawndale Redevelopment Agency (Continued) b. Long-Term Debt (Continued)
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
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 430,000 865,975 1,295,975
2028 455,000 841,638 1,296,638
2029-2033 2,795,000 3,789,913 6,584,913
2034-2038 4,185,000 2,826,313 7,011,313
2039-2043 5,465,000 1,507,138 6,972,138
2044-2045 2,630,000 146,575 2,776,575
Total 17,120,000 $ 12,704,765 $ 29,824,765 $
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.

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, 2023, the outstanding principal on the note was $870,608.

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
72 Note 14: Successor Agency to the Former Lawndale Redevelopment Agency (Continued) b. Long-Term Debt (Continued)
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
2024 $ 83,453 $ 30,254 $ 113,707
2025 86,499 27,152 113,651
2026 89,657 23,938 113,595
2027 92,929 20,605 113,534
2028 96,321 17,152 113,473
2029-2032 421,749 31,477 453,226
Total $ 870,608 $ 150,578 $ 1,021,186
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.

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.

REQUIRED SUPPLEMENTARY

INFORMATION

THIS PAGE INTENTIONALLY LEFT BLANK
City of Lawndale
Notes to Required Supplementary Information
For the Fiscal Year Ended June 30, 2023
73 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). There were no budgets adopted for the Prop 68 Park Bonds Act Fund, SB2 Housing Grant Fund, LA County Park Maintenance Grant and the Local Early Action Plan (LEAP) Fund in the current year.

City of Lawndale
Budgetary Comparison Schedule
General Fund
For the Fiscal Year Ended June 30, 2023
74 Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 26,557,776 $ 26,557,776 $ 26,557,776 $ - Resources (Inflows):

Taxes 11,367,255 11,644,954 12,806,915 1,161,961
Licenses and permits 804,000 808,050 773,789 (34,261)
Intergovernmental 4,100,000 4,100,000 4,378,474 278,474 Charges for services 960,550 960,550 1,476,638 516,088
Use of money and property 203,764 413,764 439,794 26,030 Fines and forfeitures 821,500 906,500 1,332,596 426,096 Miscellaneous 37,200 151,003 126,258 (24,745)
Proceeds from sale of capital asset - (8,670) 9,358 18,028 Amounts Available for Appropriations 44,852,045 45,533,927 47,901,598 2,367,671 Charges to Appropriation (Outflows):

General government 5,302,946 5,172,927 4,300,732 872,195 Public safety 6,576,694 6,584,694 6,569,586 15,108
Code enforcement and animal control 1,232,610 1,315,068 1,272,056 43,012 Planning and community development 1,124,301 1,172,294 971,801 200,493 Recreation and community services 944,992 968,688 786,506 182,182 Public works 2,191,695 2,497,142 2,132,986 364,156
Capital outlay 890,421 890,421 285,522 604,899
Debt service:

Principal retirement 44,266 44,266 44,266 -
Interest and fiscal charges 12,610 12,610 13,806 (1,196) Transfers out - 155,729 - (155,729)
Total Charges to Appropriations 18,320,535 18,658,110 16,532,990 2,125,120 Budgetary Fund Balance, June 30 $ 26,531,510 $ 26,875,817 $ 31,368,608 $ 4,492,791 City of Lawndale
Budgetary Comparison Schedule
Restricted Urban Development
For the Fiscal Year Ended June 30, 2023
75 Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 5,992,658 $ 5,992,658 $ 5,992,658 $ - $ Resources (Inflows):

Use of money and property 9,500 9,500 6,529 (2,971)
Amounts Available for Appropriations 6,002,158 6,002,158 5,999,187 (2,971) Charges to Appropriation (Outflows):

Transfers out 164,136 164,136 164,136 -
Total Charges to Appropriations 164,136 164,136 164,136 - Budgetary Fund Balance, June 30 $ 5,838,022 $ 5,838,022 $ 5,835,051 $ (2,971) City of Lawndale
Budgetary Comparison Schedule
ARPA Fund
For the Fiscal Year Ended June 30, 2023
76 Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 - $ - $ - $ - $
Resources (Inflows):

Intergovernmental 3,874,069 3,874,069 1,084,440 (2,789,629) Use of money and property - - (95,549) (95,549)
Amounts Available for Appropriations 3,874,069 3,874,069 988,891 (2,885,178) Charges to Appropriation (Outflows):

General Government - 50,000 11,575 38,425
Public Safety - 110,000 - 110,000
Code enforcement and animal control - 90,000 - 90,000
Capital Outlay 600,000 1,533,400 1,072,865 460,535
Total Charges to Appropriations 600,000 1,783,400 1,084,440 698,960 Budgetary Fund Balance, June 30 3,274,069 $ 2,090,669 $ (95,549) $ (2,186,218) $ 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*
77 Measurement Date
Proportion of the net
pension liability1
Proportionate share of
the net pension
liability Covered payroll
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%
6/30/2021 0.086230% 4,663,673 3,622,805 128.73% 87.14%
6/30/2022 0.087107% 10,061,592 3,379,109 297.76% 73.63% *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 excluding the 1959 survivors Risk Pool.

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City of Lawndale
Schedule of Plan Contributions
CalPERS Cost Sharing Miscellaneous Plan
Last Ten Years*
78 Fiscal Year
Actuarially
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%
2021-2022 947,169 (947,169) 3,379,109 - 28.03%
2022-2023 1,052,023 (1,052,023) 3,574,506 - 29.43%
*Historical information is required only for measurement for which GASB 68 is applicable.

Notes to Schedule:

Change in Benefit Terms:

Change in Assumptions: Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions.There were no assumption changes for 2021. 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 fiveyear 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.

There were no changes to benefit terms that applied to all members of the Public Agency Pool. Additionally, the figures above do not include any liability impact that may have resulted from Golden Handshakes that occurred after the June 30, 2021 valuation date, unless the liability impact is deemed to be material to the Public Agency Pool.

City of Lawndale
Schedule of Changes in Net Pension Liability and Related Ratios as of the Measurement Date
PARS Retirement Enhancement Plan
For the Fiscal Year Ended June 30, 2023
79 Measurement Date 2023 2022 2021 2020 2019
Total Pension Liability
Service cost $ - -$ -$ -$ 24,739 $
Interest on the Total Pension Liability 52,912 53,042 53,430 57,391 56,830 Effect of economic/demographic gains or losses 7,702 - (67,384) - - Effect of assumption changes or inputs - - 4,554 - (42,305) Benefit payments, including refunds of employee contributions (63,381) (62,138) (56,764) (54,265) - Net Change in Total Pension Liability (10,469) (1,394) (3,334) (59,704) 39,264 Total Pension Liability - Beginning 845,215 846,609 849,943 909,647 870,383 Total Pension Liability - Ending (a) $ 834,746 845,215$ 846,609$ $ 849,943 909,647$ Plan Fiduciary Net Position
Employer Contributions $ 30,997 48,680$ 54,070$ $ 35,683 - $ Net investment income 48,035 (108,611) 151,416 21,288 42,049 Benefit payments, including refunds of employee contributions (63,381) (62,138) (56,764) (54,265) (42,305) Administrative expenses (3,584) (4,149) (3,956) (3,535) (3,447) Net Change in Fiduciary Net Position 12,067 (126,218) 144,766 (36,512) 31,980 Plan Fiduciary Net Position - Beginning 699,931 826,149 681,383 717,895 685,915 Plan Fiduciary Net Position - Ending (b) $ 711,998 699,931$ 826,149$ $ 681,383 717,895$ Plan Net Pension Liability - Ending (a) - (b) $ 122,748 145,284$ $ 20,460 168,560$ 191,752$ Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 85.3% 82.8% 97.6% 80.2% 78.9%
Covered Payroll(1) N/A N/A N/A N/A N/A
Plan Net Pension Liability as a Percentage of Covered Payroll N/A N/A N/A N/A 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 for measurement date 2019. (2)No actuarial valuation was performed for 2016.

Notes to Schedule:

Changes in Benefit Terms: There were no changes to benefit terms that applied to all members of the Public Agency Pool.

Additionally, the figures above do not include any liability impact that may have resulted from Golden Handshakes that occurred after the June 30, 2021 valuation date, unless the liability impact is deemed to be material to the Public Agency Pool.

Changes in Assumptions: Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account longterm market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. There were no assumption changes for 2021. 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 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. 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.
80 2018 2017 2016 (2) 2015
$ 24,018 $ 28,713 $ 45,100 - $
53,113 50,372 42,181 -
11,039 - - -
41,097 - - -
(21,451) (14,562) (8,974) -
66,719 105,620 78,307 -
803,664 698,044 640,349 562,042
$ 870,383 803,664$ $ 640,349 $ 562,042
$ 19,890 $ 19,889 $ 39,254 - $
40,514 60,634 14,293 -
(21,451) (14,562) (8,974) -
(3,463) (3,149) (2,964) -
35,490 62,812 41,609 -
650,425 587,613 586,056 544,447
$ 685,915 650,425$ $ 586,056 $ 544,447
$ 184,468 $ 153,239 $ 54,293 $ 17,595

78.8% 80.9% 91.5% 91.5%
$ 314,042 304,044$ $ 295,188 $ 404,081

58.7% 50.4% 18.4% 13.4%
City of Lawndale
Schedule of Plan Contributions
PARS Retirement Enhancement Plan
Last Ten Years*
81 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 N/A
2019-2020 55,442 - 55,442 N/A N/A
2020-2021 24,980 (54,070) (29,090) N/A N/A
2021-2022 24,980 (48,680) (23,700) N/A N/A
2022-2023 7,097 (30,997) (23,900) N/A 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:

Actuarial Cost Method
Amortization Method/Period
Asset Valuation Method
Actuarial Assumptions:

Discount Rate
Inflation
Salary Increases
Mortality Rate Table
Post Retirement Benefit Increase
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2022-23 were from the June 30, 2021 Funding Valuation Report.

Entry Age Actuarial Cost Method
For details, see June 30, 2021 Funding Valuation Report.

Fair Value of Assets

6.50%

2.50%
Not Applicable
Pre-retirement: Consistent wit 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.

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

City of Lawndale
Schedule of Investment Returns
PARS Retirement Enhancement Plan
Last Ten Years*
82 Fiscal Year Net Money-Weighted Rate of Return
2015 2.48%
2016 -0.14%
2017 10.14%
2018 6.15%
2019 6.18%
2020 3.08%
2021 21.49%
2022 -13.05%
*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*
83 Fiscal Year 2023 2022 2021 2020 2019 2018
Total OPEB Liability
Service cost $ 267,581 $ 447,040 $ 425,674 $ 205,330 $ 184,378 $ 179,443 Interest on the total OPEB liability 196,877 166,575 155,567 159,173 143,562 146,967 Experience (gains)/losses (1,136) (581,425) 276,830 - - - Changes in assumptions (250,352) (1,769,151) 46,222 1,930,822 209,309 - Benefit payments (238,584) (230,013) (213,405) (104,378) (99,021) (95,212) Net change in total OPEB liability (25,614) (1,966,974) 414,058 2,467,777 438,228 231,198 Total OPEB liability - beginning 5,412,180 7,379,154 6,965,096 4,497,319 4,059,091 3,827,893 Total OPEB liability - ending (a) $ 5,386,566 $ 5,412,180 $ 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% 0.00% 0.00% Covered-employee payroll(1) $ 3,174,733 3,820,311 $ 2,574,004 $ $ 2,535,647 $ 2,918,274 $ 2,935,427 Net OPEB liability as a percentage of covered-employee payroll 141.00% 170.48% 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: For 2023, the discount rate increased from 3.45% to 3.86% based on the municipal bond index. For 2022, the discount rate increased from 2.16% to 3.45% based on the updated municipal bond index. Payroll growth, mortality, termination and retirement rate assumptions have been updated from CalPERS Experience Study and Review of Actuarial Assumptions published in December 2017 to the most recent study published in November 2021. Healthcare trend rates have been updated from 4.00% to Getzen 2022 table that reflects actual premium increases from 2022 to 2023 followed by 6.50% in 2023 that decreases gradually to an ultimate rate of 3.94% in 2075 for non-Medicare and 4.00% for all years on/after 2023 for Medicare. Percentage of active employees assumed to elect spousal coverage at retirement has been reduced from 80% to 25%.

SUPPLEMENTARY INFORMATION

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City of Lawndale
Non-Major Governmental Funds
84 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.

Justice Assistance Grant - To account for federal funds in the City’s law enforcement program.

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.

City of Lawndale
Non-Major Governmental Funds (Continued)
85 Special Revenue Funds (Continued)
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.

Disability Access (AB 1379) - 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.

SB1383 Local Assistance - To account for the proceeds and expenses related to Senate Bill 1383, which requires the implementation of solid waste and organic recycling programs beginning on January 1, 2022.

Prop 68 2018 Parks Bond Act - For local park rehabilitation, creation, and improvement grants to local government on a per capita basis.

SB2 Housing Grant - Funding and technical assistance to local governments in California to help cities and counties to prepare, adopt, and implement plans and process improvements that streamline housing approvals and accelerate housing production.

Local Early Action Plan (LEAP) - Provides one-time grant funding to cities and counties to update their planning documents and implement process improvements that will facilitate the acceleration of housing production.

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.

City of Lawndale
Non-Major Governmental Funds (Continued)
86 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.

City of Lawndale
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2023
87 Gas Tax Air Quality
Proposition A
Local Transit
Assistance
Narcotics
Forfeiture
State COPS
Grant
Assets
Cash and investments 331,610 $ 212,298 $ 3,564,826 $ 55,337 $ 241,232 $ Receivables:

Accounts 69,935 10,439 - - -
Grants - - - - -
Notes and loans - - - - -
Land held for development - - - - -
Total Assets 401,545 $ 222,737 $ 3,564,826 $ 55,337 $ 241,232 $ Liabilities and Fund Balances
Liabilities
Accounts payable 40,325 $ - $ 84,237 $ - $ 20,350 $
Accrued liabilities 9,412 - 3,090.00 - -
Due to other funds - - - - -
Total Liabilities 49,737 - 87,327 - 20,350
Fund Balances (deficit)
Restricted for:

Community development projects - - - - -
Public safety - - - 55,337 220,882
Recreation and community services - - 3,477,499 - -
Public works 351,808 - - - -
Air quality - 222,737 - - -
Municipal services - - - - -
Housing - - - - -
Unassigned - - - - -
Total Fund Balances 351,808 222,737 3,477,499 55,337 220,882 Total Liabilities and Fund Balances $ 401,545 $ 222,737 $ 3,564,826 $ 55,337 $ 241,232 Special Revenue Funds
(Continued)
88 CA Law
Enforcement
Equipment
Used Oil
Recycling Grant
Lawndale Cable
Usage
Corporation
Department of
Conservation
Grant
Justice
Assistance Grant
Park
Development
Measure M
Local Return
$ 8,370 1,263 $ $ 200,904 $ 16,790 $ - $ 10,942 $ 2,170,637 - - 8,462 - - - -
- - - - - - -
- - - - - - -
- - - - - - -
$ 1,263 $ 8,370 $ 209,366 $ 16,790 $ - $ 10,942 $ 2,170,637 $ 833 $ 2,948 $ - $ - $ - $ - $ 230,339
- - - - - - 1,959
- - - - 9,873 - -
833 2,948 - - 9,873 - 232,298
- - - - - - -
430 - - - - - -
- - - 16,790 - 10,942 -
- 5,422 - - - - 1,938,339
- - - - - - -
- - 209,366 - - - -
- - - - - - -
- - - - (9,873) - -
430 5,422 209,366 16,790 (9,873) 10,942 1,938,339
$ 1,263 $ 8,370 $ 209,366 $ 16,790 $ - $ 10,942 $ 2,170,637 Special Revenue Funds
City of Lawndale
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2023
89 LA County
Parks
Maintenance
Grant SB1 RMRA
Groundwater
Sustainability
Disability
Access (AB
1379)
Measure W Safe
Clean Water
Assets
Cash and investments $ 3,998 $ 1,129,099 $ 417,196 $ 73,738 $ 564,022 Receivables:

Accounts - 124,313 50,481 - -
Grants - - - - -
Notes and loans - - - - -
Land held for development - - - - -
Total Assets $ 3,998 $ 1,253,412 $ 467,677 $ 73,738 $ 564,022 Liabilities and Fund Balances
Liabilities
Accounts payable $ - $ 10,354 $ 8,671 $ 87 $ 4,713
Accrued liabilities - 2,651 4,229 - 458
Due to other funds - - - - -
Total Liabilities - 13,005 12,900 87 5,171
Fund Balances (deficit)
Restricted for:

Community development projects - - - - -
Public safety - - - - -
Recreation and community services 3,998 - - - -
Public works - 1,240,407 454,777 73,651 558,851
Air quality - - - - -
Municipal services - - - - -
Housing - - - - -
Unassigned - - - - -
Total Fund Balances 3,998 1,240,407 454,777 73,651 558,851 Total Liabilities and Fund Balances $ 3,998 $ 1,253,412 $ 467,677 $ 73,738 $ 564,022 Special Revenue Funds
(Continued)
90 SB1383 Local
Assistance
Prop 68
2018 Parks
Bond Act
SB2 Housing
Grant
Local Early
Action Plan
(LEAP)
Lawndale
Housing
Authority
TDA Article 3
(Metro)
Proposition C
Local Transit
Assistance
$ - 47,062 $ - $ - $ 1,730,504 $ - $ 1,519,070 $
- - 82,307 33,729 - - -
- - - - - - -
- - - - 76,562 - -
- - - - 487,083 - -
$ 47,062 $ - $ 82,307 $ 33,729 $ 2,294,149 $ - $ 1,519,070 $ - $ 3,857 $ - $ - $ 718 $ - $ 55,466
- - - - 3,161 - 14,774
- - - - - 1,643 -
- 3,857 - - 3,879 1,643 70,240
- - - - - - -
- - - - - - -
- - - - - - -
47,062 - 82,307 33,729 - - 1,448,830
- - - - - - -
- - - - - - -
- - - - 2,290,270 - -
- (3,857) - - - (1,643) -
47,062 (3,857) 82,307 33,729 2,290,270 (1,643) 1,448,830 $ 47,062 $ - $ 82,307 $ 33,729 $ 2,294,149 $ - $ 1,519,070 Special Revenue Funds Capital Projects Funds
City of Lawndale
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2023
91 Community
Development
Block Grant Prop C25 Grant Measure R
Metro STPL
Exchange 2017
Total
Non-major
Governmental
Funds
Assets
Cash and investments $ - $ - $ 872,354 $ 4,368 $ 13,175,620 Receivables:

Accounts - 1,432,377 684,087 - 2,496,130
Grants 25,773 - - - 25,773
Notes and loans 189,869 - - - 266,431
Land held for development - - - - 487,083
Total Assets $ 215,642 $ 1,432,377 $ 1,556,441 $ 4,368 $ 16,451,037 Liabilities and Fund Balances
Liabilities
Accounts payable $ 17,654 $ 48,086 $ 55,181 $ - $ 583,819 Accrued liabilities 3,005 1,584 4,159 - 48,482
Due to other funds 34,330 1,133,153 - - 1,178,999
Total Liabilities 54,989 1,182,823 59,340 - 1,811,300
Fund Balances (deficit)
Restricted for:

Community development projects 160,653 - - - 160,653
Public safety - - - - 276,649
Recreation and community services - - - - 3,509,229
Public works - 249,554 1,497,101 4,368 7,986,206
Air quality - - - - 222,737
Municipal services - - - - 209,366
Housing - - - - 2,290,270
Unassigned - - - - (15,373)
Total Fund Balances 160,653 249,554 1,497,101 4,368 14,639,737 Total Liabilities and Fund Balances $ 215,642 $ 1,432,377 $ 1,556,441 $ 4,368 $ 16,451,037 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, 2023
92 Gas Tax Air Quality
Proposition A
Local Transit
Assistance
Narcotics
Forfeiture
State COPS
Grant
Revenues
Intergovernmental $ 801,306 $ 52,077 $ 859,772 $ - $ 165,271 Charges for services - - - - -
Use of money and property (966) 1,118 17,584 386 1,433
Miscellaneous - - 118,582 - -
Total Revenues 800,340 53,195 995,938 386 166,704
Expenditures
Current:

General government - - - - -
Public safety - - - - 122,100
Housing - - 65,402 - -
Recreation and community services - - 133,613 - -
Public works 571,062 - - - -
Capital outlay - - - - -
Total Expenditures 571,062 - 199,015 - 122,100
Excess (Deficiency) of Revenues
Over (Under) Expenditures 229,278 53,195 796,923 386 44,604 Other Financing Sources (Uses)
Transfers in - - - - -
Total Other Financing Sources (Uses) - - - - -
Net Change in Fund Balances 229,278 53,195 796,923 386 44,604 Fund Balances (deficit)
Beginning of year 122,530 169,542 2,680,576 54,951 176,278 End of Year $ 222,737 351,808 $ $ 3,477,499 $ 55,337 $ 220,882 Special Revenue Funds
(Continued)
93 CA Law
Enforcement
Equipment
Used Oil
Recycling
Grant
Lawndale Cable
Usage
Corporation
Department of
Conservation
Grant
Justice
Assistance
Grant
Park
Development
Measure M
Local Return
$ - $ 5,150 $ - $ 8,136 $ - $ - $ 604,875
- - 36,199 - - 2,400 -
(38) (73) 1,073 (242) 127 56 12,575
- - - - - - -
(38) 5,077 37,272 7,894 127 2,456 617,450
5,000 - - - - - -
- - - - - - -
- - - - - - -
- - - 8,384 - - -
- 2,948 - - - - 497,218
- - - - - - -
5,000 2,948 - 8,384 - - 497,218
(5,038) 2,129 37,272 (490) 127 2,456 120,232
- - - - - - -
- - - - - - -
(5,038) 2,129 37,272 (490) 127 2,456 120,232
5,468 3,293 172,094 17,280 (10,000) 8,486 1,818,107
$ 430 $ 5,422 $ 209,366 $ 16,790 $ (9,873) $ 10,942 $ 1,938,339 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, 2023
94 LA County
Parks
Maintenance
Grant SB1 RMRA
Groundwater
Sustainability
(AB 939)
Disability
Access
(AB 1379)
Measure W
Safe Clean
Water
Revenues
Intergovernmental $ - $ 709,429 $ 191,718 $ 9,911 $ 233,705 Charges for services - - - - -
Use of money and property (18) 3,894 3,542 452 (420)
Miscellaneous - - 2,800 - -
Total Revenues (18) 713,323 198,060 10,363 233,285
Expenditures
Current:

General government - - - - 6,481
Public safety - - - - -
Housing - - - - -
Recreation and community services - - - - -
Public works - 191,562 187,165 - 81,546
Capital outlay - - - - -
Total Expenditures - 191,562 187,165 - 88,027
Excess (Deficiency) of Revenues
Over (Under) Expenditures (18) 521,761 10,895 10,363 145,258 Other Financing Sources (Uses)
Transfers in - - - - -
Total Other Financing Sources (Uses) - - - - -
Net Change in Fund Balances (18) 521,761 10,895 10,363 145,258 Fund Balances (deficit)
Beginning of year 4,016 718,646 443,882 63,288 413,593
End of Year $ 1,240,407 3,998 $ 454,777 $ 73,651 $ 558,851 $ Special Revenue Funds
(Continued)
95 SB1383 Local
Assistance
Prop 68
2018 Parks
Bond Act
SB2 Housing
Grant
Local Early
Action Plan
(LEAP)
Lawndale
Housing
Authority
TDA Article 3
(Metro)
Proposition C
Local Transit
Assistance
$ - $ - $ 82,307 $ 33,729 $ - $ - $ 713,157
- - - - - - -
61 - - - 9,507 21 15,189
- - - - - - -
61 - 82,307 33,729 9,507 21 728,346
- - - - - - -
- - - - - - -
- - - - 92,617 - -
- - - - - - -
- - - - - - 344,990
- 3,857 - - - - 241,710
- 3,857 - - 92,617 - 586,700
61 (3,857) 82,307 33,729 (83,110) 21 141,646
- - - - 319,865 - -
- - - - 319,865 - -
61 (3,857) 82,307 33,729 236,755 21 141,646
47,001 - - - 2,053,515 (1,664) 1,307,184
$ 47,062 $ (3,857) $ 82,307 $ 33,729 $ 2,290,270 $ (1,643) $ 1,448,830 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, 2023
96 Community
Development
Block Grant
Prop C25
Grant Measure R
Metro STPL
Exchange 2017
Total
Non-major
Governmental
Funds
Revenues
Intergovernmental 372,464 $ 1,684,107 $ 1,218,800 $ - $ 7,745,914 $ Charges for services - - - - 38,599
Use of money and property 598 11,397 9,601 30 86,887
Miscellaneous - - - - 121,382
Total Revenues 373,062 1,695,504 1,228,401 30 7,992,782 Expenditures
Current:

General government - - - - 11,481
Public safety - - - - 122,100
Housing - - - - 158,019
Recreation and community services - - - - 141,997
Public works 139,296 64,385 140,444 - 2,220,616
Capital outlay 261,488 1,127,025 1,116,885 - 2,750,965
Total Expenditures 400,784 1,191,410 1,257,329 - 5,405,178 Excess (Deficiency) of Revenues
Over (Under) Expenditures (27,722) 504,094 (28,928) 30 2,587,604 Other Financing Sources (Uses)
Transfers in - - - - 319,865
Total Other Financing Sources (Uses) - - - - 319,865
Net Change in Fund Balances (27,722) 504,094 (28,928) 30 2,907,469 Fund Balances (deficit)
Beginning of year 188,375 (254,540) 1,526,029 4,338 11,732,268 End of Year $ 249,554 160,653 $ 1,497,101 $ 4,368 $ 14,639,737 $ Capital Projects Funds

City of Lawndale
Budgetary Comparison Schedule
Gas Tax
For the Fiscal Year Ended June 30, 2023
97 Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance (deficit), July 1 $ 122,530 122,530$ $ 122,530 $ - Resources (Inflows):

Intergovernmental 901,414 901,414 801,306 (100,108)
Use of money and property 50 50 (966) (1,016)
Amounts Available for Appropriation 1,023,994 1,023,994 922,870 (101,124) Charges to Appropriation (Outflows):

Public works 661,440 661,440 571,062 90,378
Total Charges to Appropriation 661,440 661,440 571,062 90,378 Budgetary Fund Balance (Deficit), June 30 362,554 $ 362,554$ $ 351,808 $ (10,746) City of Lawndale
Budgetary Comparison Schedule
Air Quality
For the Fiscal Year Ended June 30, 2023
98 Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 169,542 169,542$ $ 169,542 $ - Resources (Inflows):

Intergovernmental 40,000 40,000 52,077 12,077
Use of money and property 1,500 1,500 1,118 (382)
Amounts Available for Appropriation 211,042 211,042 222,737 11,695 Budgetary Fund Balance, June 30 211,042$ 211,042$ $ 222,737 $ 11,695 City of Lawndale
Budgetary Comparison Schedule
Proposition A Local Transit Assistance
For the Fiscal Year Ended June 30, 2023
99 Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 2,680,576 $ 2,680,576 $ 2,680,576 $ - $ Resources (Inflows):

Intergovernmental 798,019 798,019 859,772 61,753
Use of money and property 15,000 15,000 17,584 2,584
Miscellaneous - - 118,582 118,582
Amounts Available for Appropriation 3,493,595 3,493,595 3,676,514 182,919 Charges to Appropriation (Outflows):

Housing - 65,402 65,402 -
Recreation and community services 212,037 224,570 133,613 90,957 Total Charges to Appropriation 212,037 289,972 199,015 90,957 Budgetary Fund Balance, June 30 3,281,558 $ 3,203,623 $ 3,477,499 $ 273,876 $ City of Lawndale
Budgetary Comparison Schedule
Narcotics Forfeiture
For the Fiscal Year Ended June 30, 2023
100
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 54,951 $ 54,951 $ 54,951 $ - Resources (Inflows):

Use of money and property 1,500 1,500 386 (1,114)
Amounts Available for Appropriation 56,451 56,451 55,337 (1,114) Budgetary Fund Balance, June 30 $ 56,451 $ 56,451 $ 55,337 $ (1,114) City of Lawndale
Budgetary Comparison Schedule
State COPS Grant
For the Fiscal Year Ended June 30, 2023
101
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 176,278 $ 176,278$ $ 176,278 $ - Resources (Inflows):

Intergovernmental 150,000 150,000 165,271 15,271
Use of money and property 1,500 1,500 1,433 (67)
Amounts Available for Appropriation 327,778 327,778 342,982 15,204 Charges to Appropriation (Outflows):

Public safety 160,266 160,266 122,100 38,166
Total Charges to Appropriation 160,266 160,266 122,100 38,166 Budgetary Fund Balance, June 30 $ 167,512 167,512$ $ 220,882 $ 53,370 City of Lawndale
Budgetary Comparison Schedule
CA Law Enforcement Equipment
For the Fiscal Year Ended June 30, 2023
102
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 5,468 $ 5,468$ $ 5,468 $ - Use of money and property - - (38) (38)
Amounts Available for Appropriation 5,468 5,468 5,430 (38) Charges to Appropriation (Outflows):

General government 5,000 5,000 5,000 -
Total Charges to Appropriation 5,000 5,000 5,000 -
Budgetary Fund Balance, June 30 $ 468 468$ $ 430 $ (38) City of Lawndale
Budgetary Comparison Schedule
Used Oil Recycling Grant
For the Fiscal Year Ended June 30, 2023
103
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 3,293 $ 3,293 $ 3,293 $ - $ Resources (Inflows):

Intergovernmental 5,000 5,000 5,150 150
Use of money and property - - (73) (73)
Amounts Available for Appropriation 8,293 8,293 8,370 77 Charges to Appropriation (Outflows):

Public works 5,000 5,000 2,948 2,052
Total Charges to Appropriation 5,000 5,000 2,948 2,052
Budgetary Fund Balance, June 30 3,293 $ 3,293 $ 5,422 $ 2,129 $ City of Lawndale
Budgetary Comparison Schedule
Lawndale Cable Usage Corporation
For the Fiscal Year Ended June 30, 2023
104
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 172,094 $ 172,094 $ 172,094 $ - $ Resources (Inflows):

Charges for services 40,000 40,000 36,199 (3,801)
Use of money and property 1,500 1,500 1,073 (427)
Amounts Available for Appropriation 213,594 213,594 209,366 (4,228) Budgetary Fund Balance, June 30 213,594 $ 213,594 $ 209,366 $ (4,228) $ City of Lawndale
Budgetary Comparison Schedule
Department of Conservation Grant
For the Fiscal Year Ended June 30, 2023
105
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 17,280 $ 17,280 $ 17,280 $ $ - Resources (Inflows):

Intergovernmental 8,500 8,500 8,136 (364)
Use of money of property - - (242) -
Amounts Available for Appropriation 25,780 25,780 25,174 (606) Charges to Appropriation (Outflows):

Recreation and community services 8,400 8,400 8,384 16
Total Charges to Appropriation 8,400 8,400 8,384 16
Budgetary Fund Balance, June 30 $ 17,380 $ 17,380 $ 16,790 $ (590) City of Lawndale
Budgetary Comparison Schedule
Justice Assistance Grant
For the Fiscal Year Ended June 30, 2023
106
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 (10,000) $ $ (10,000) $ (10,000) $ - Use of money and property - - 127 127
Amounts Available for Appropriation (10,000) (10,000) (9,873) 127 Budgetary Fund Balance (Deficit), June 30 (10,000) $ $ (10,000) $ (9,873) $ 127 City of Lawndale
Budgetary Comparison Schedule
Park Development
For the Fiscal Year Ended June 30, 2023
107
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance (deficit), July 1 8,486 $ 8,486$ 8,486$ $ - Resources (Inflows):

Charges for services - - 2,400 2,400
Use of money and property - - 56 56
Amounts Available for Appropriation 8,486 8,486 10,942 2,456 Budgetary Fund Balance, June 30 $ 8,486 8,486$ $ 10,942 $ 2,456 City of Lawndale
Budgetary Comparison Schedule
Measure M Local Return
For the Fiscal Year Ended June 30, 2023
108
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 1,818,107 1,818,107 $ 1,818,107 $ - $ Resources (Inflows):

Intergovernmental 562,645 562,645 604,875 42,230
Use of money and property 15,000 15,000 12,575 (2,425)
Amounts Available for Appropriation 2,395,752 2,395,752 2,435,557 39,805 Charges to Appropriation (Outflows):

Public works 1,109,200 1,109,200 497,218 611,982
Total Charges to Appropriation 1,109,200 1,109,200 497,218 611,982 Budgetary Fund Balance, June 30 $ 1,286,552 1,286,552 $ 1,938,339 $ 651,787 $ City of Lawndale
Budgetary Comparison Schedule
SB1 RMRA
For the Fiscal Year Ended June 30, 2023
109
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1, as restated 718,646 $ 718,646 $ $ 718,646 $ - Resources (Inflows):

Intergovernmental 725,641 725,641 709,429 (16,212)
Use of money and property 9,000 9,000 3,894 (5,106)
Amounts Available for Appropriation 1,453,287 1,453,287 1,431,969 (21,318) Charges to Appropriation (Outflows):

Public works 1,182,328 1,182,328 191,562 990,766
Total Charges to Appropriation 1,182,328 1,182,328 191,562 990,766 Budgetary Fund Balance, June 30 $ 270,959 $ 270,959 $ 969,448 1,240,407 $ City of Lawndale
Budgetary Comparison Schedule
Groundwater Sustainability (AB 939)
For the Fiscal Year Ended June 30, 2023
110
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 443,882 $ 443,882 $ 443,882 $ - $ Resources (Inflows):

Intergovernmental 175,000 175,000 191,718 16,718
Use of money and property 6,000 6,000 3,542 (2,458)
Miscellaneous - - 2,800 2,800
Amounts Available for Appropriation 624,882 624,882 641,942 17,060 Charges to Appropriation (Outflows):

Public works 204,079 186,451 187,165 (714)
Total Charges to Appropriation 204,079 186,451 187,165 (714) Budgetary Fund Balance, June 30 $ 420,803 $ 438,431 $ 454,777 $ 16,346 City of Lawndale
Budgetary Comparison Schedule
Disability Access (AB 1379)
For the Fiscal Year Ended June 30, 2023
111
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 63,288 $ 63,288 $ 63,288 $ - $ Resources (Inflows):

Intergovernmental 10,000 10,000 9,911 (89)
Use of money and property 300 300 452 152
Amounts Available for Appropriation 73,588 73,588 73,651 63 Budgetary Fund Balance, June 30 $ 73,588 $ 73,588 $ 73,651 $ 63 City of Lawndale
Budgetary Comparison Schedule
Measure W Safe Clean Water
For the Fiscal Year Ended June 30, 2023
112
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 413,593 $ 413,593$ 413,593$ $ - Resources (Inflows):

Intergovernmental - - 233,705 233,705
Use of money and property - - (420) (420)
Amounts Available for Appropriation 413,593 413,593 646,878 233,285 Charges to Appropriation (Outflows):

General government 15,977 7,163 6,481 682
Public works 82,000 82,000 81,546 454
Total Charges to Appropriation 97,977 89,163 88,027 1,136 Budgetary Fund Balance, June 30 $ 315,616 324,430$ 558,851$ $ 234,421 City of Lawndale
Budgetary Comparison Schedule
SB1383 Local Assistance
For the Fiscal Year Ended June 30, 2023
113
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 47,001 $ 47,001 $ 47,001 $ - $ Resources (Inflows):

Intergovernmental 10,000 10,000 - (10,000)
Use of money and property 300 300 61 (239)
Amounts Available for Appropriation 57,301 57,301 47,062 (10,239) Budgetary Fund Balance, June 30 $ 57,301 $ 57,301 $ 47,062 $ (10,239) City of Lawndale
Budgetary Comparison Schedule
Lawndale Housing Authority
For the Fiscal Year Ended June 30, 2023
114
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 2,053,515 2,053,515 $ 2,053,515 $ - $ Resources (Inflows):

Use of money and property 15,000 15,000 9,507 (5,493)
Transfers in - - 319,865 319,865
Amounts Available for Appropriation 2,068,515 2,068,515 2,382,887 314,372 Charges to Appropriation (Outflows):

Housing 169,791 169,791 92,617 77,174
Total Charges to Appropriation 169,791 169,791 92,617 77,174 Budgetary Fund Balance, June 30 $ 1,898,724 1,898,724 $ 2,290,270 $ 391,546 $ City of Lawndale
Budgetary Comparison Schedule
TDA Article 3 (Metro)
For the Fiscal Year Ended June 30, 2023
115
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 30,801 30,801 - (30,801)
Use of money of property - - 21 (21)
Amounts Available for Appropriation 29,137 29,137 (1,643) 30,780 Budgetary Fund Balance (deficit), June 30 29,137 $ 29,137 $ $ (1,643) $ 30,780 City of Lawndale
Budgetary Comparison Schedule
Proposition C Local Transit Assistance
For the Fiscal Year Ended June 30, 2023
116
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,307,184 $ 1,307,184 $ 1,307,184 $ - $ Resources (Inflows):

Intergovernmental 661,936 661,936 713,157 51,221
Use of money and property 15,000 15,000 15,189 189
Amounts Available for Appropriation 1,984,120 1,984,120 2,035,530 51,410 Charges to Appropriation (Outflows):

Public works 668,927 545,533 344,990 200,543
Capital outlay 1,862,159 1,862,159 241,710 1,620,449
Total Charges to Appropriation 2,531,086 2,407,692 586,700 1,820,992 Budgetary Fund Balance, June 30 (546,966) $ (423,572) $ 1,448,830 $ 1,872,402 $ City of Lawndale
Budgetary Comparison Schedule
Community Development Block Grant
For the Fiscal Year Ended June 30, 2023
117
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance (deficit), July 1 188,375 $ 188,375 $ 188,375 $ - $ Resources (Inflows):

Intergovernmental 764,427 764,427 (391,963) 372,464
Use of money of property - - - 598
Amounts Available for Appropriation 952,802 952,802 561,437 (391,365) Charges to Appropriation (Outflows):

Public works 161,586 185,622 139,296 46,326
Capital outlay 481,739 481,739 261,488 220,251
Total Charges to Appropriation 643,325 667,361 400,784 266,577 Budgetary Fund Balance, June 30 $ 309,477 $ 285,441 $ 160,653 $ (124,788) City of Lawndale
Budgetary Comparison Schedule
Prop C25 Grant
For the Fiscal Year Ended June 30, 2023
118
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance (deficit), July 1 (254,540) $ (254,540) $ (254,540) $ - $ Resources (Inflows):

Intergovernmental - - 1,684,107 1,684,107
Use of money of property - - - 11,397
Amounts Available for Appropriation (254,540) (254,540) 1,440,964 1,695,504 Charges to Appropriation (Outflows):

Public works - 15,000 64,385 (49,385)
Capital outlay 2,318,827 2,303,827 1,127,025 1,176,802
Total Charges to Appropriation 2,318,827 2,318,827 1,191,410 1,127,417 Budgetary Fund Balance (deficit), June 30 (2,573,367) $ (2,573,367) $ 249,554 $ 2,822,921 $ City of Lawndale
Budgetary Comparison Schedule
Measure R
For the Fiscal Year Ended June 30, 2023
119
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,526,029 $ 1,526,029 $ 1,526,029 $ - $ Resources (Inflows):

Intergovernmental 496,452 496,452 1,218,800 722,348
Use of money and property 12,000 12,000 9,601 (2,399)
Amounts Available for Appropriation 2,034,481 2,034,481 2,754,430 719,949 Charges to Appropriation (Outflows):

Public works 147,389 162,389 140,444 21,945
Capital outlay 2,569,418 2,554,418 1,116,885 1,437,533
Total Charges to Appropriation 2,716,807 2,716,807 1,257,329 1,459,478 Budgetary Fund Balance, June 30 (682,326) $ (682,326) $ 1,497,101 $ 2,179,427 $ City of Lawndale
Budgetary Comparison Schedule
Metro STPL Exchange 2017
For the Fiscal Year Ended June 30, 2023
120
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 4,338 $ 4,338 $ 4,338 $ - $ Resources (Inflows):

Use of money and property 600 600 30 (570)
Amounts Available for Appropriation 4,938 4,938 4,368 (570) Budgetary Fund Balance, June 30 4,938 $ 4,938 $ 4,368 $ (570) $

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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 121
These schedules contain trend information to help the reader understand how the government’s financial performance and wellbeing have changed over time.

Revenue Capacity 125
These schedules contain trend information to help the reader assess the government’s most significant revenue source, property tax.

Debt Capacity 130
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 131
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 140
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.

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City of Lawndale
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting
121
Fiscal Year
2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
Governmental Activities:

Net investment in capital assets 47,680,378 $ 45,193,728 $ 43,925,644 $ 43,387,317 $ 42,993,707 $ 44,308,151 $ 45,232,399 $ 45,929,475 $ 41,632,026 $ 41,303,660 $ Restricted 16,132,854 11,875,942 17,280,809 16,315,035 14,946,011 13,516,348 13,878,261 12,998,959 25,108,842 5,971,750 Unrestricted 31,922,479 31,695,044 18,105,367 14,361,429 14,601,717 12,280,467 14,736,240 16,089,931 (1,881,516) 23,838,865 Total governmental activities $ 88,764,714 95,735,711 $ 79,311,820 $ 74,063,781 $ 72,541,435 $ $ 73,846,900 70,104,966 $ 75,018,365 $ 64,859,352 $ 71,114,275 $ Business-type Activities:

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

Net investment in capital assets $ 45,193,728 47,680,378 $ 43,925,644 $ 43,387,317 $ 42,993,707 $ $ 45,232,399 44,308,151 $ 45,929,475 $ 41,632,026 $ 41,303,660 $ Restricted 16,132,854 11,875,942 17,280,809 16,315,035 14,946,011 13,516,348 13,878,261 12,998,959 25,108,842 5,971,750 Unrestricted 31,922,479 31,695,044 18,105,367 14,754,088 14,601,717 12,280,467 14,736,240 16,089,931 (1,881,516) 23,838,865 $ 88,764,714 95,735,711 $ 79,311,820 $ 74,456,440 $ 72,541,435 $ $ 73,846,900 70,104,966 $ 75,018,365 $ 64,859,352 $ 71,114,275 $ Source: City of Lawndale, Finance Department
City of Lawndale
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
122
Fiscal Year
2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
Expenses:

Governmental activities:

General government $ 4,204,502 $ 4,557,959 $ 5,066,050 $ 4,191,071 $ 4,074,964 $ 4,051,141 $ 3,974,826 $ 3,375,499 $ 3,494,495 $ 3,644,909 Public safety 6,695,437 6,304,671 6,290,957 6,202,978 5,533,190 5,637,010 5,481,018 5,166,327 4,984,084 4,767,707 Code enforcement and animal control 1,161,300 1,284,905 1,333,971 1,335,008 1,078,957 1,026,693 1,161,697 1,090,955 5,109,539 4,676,472 Housing 1,653,658 1,549,137 1,662,910 695,428 1,478,685 1,344,843 2,342,003 1,808,464 1,869,744 1,378,366 Recreation & community services 850,352 780,739 577,013 2,360,100 1,943,391 1,891,344 2,520,125 1,934,189 1,839,218 1,938,500 Public works 5,074,402 5,182,500 4,627,877 5,168,775 4,400,419 5,647,091 2,845,551 3,821,975 - - Interest on long-term debt 13,193 14,799 16,309 17,944 19,318 20,624 22,083 23,516 24,565 25,914 Total governmental activities expenses 19,652,844 19,674,710 19,575,087 19,971,304 18,528,924 19,618,746 18,347,303 17,220,925 17,321,645 16,431,868 Business-type activities:

Community Development - - - 1,030,325 - - - - - -
Total business-type activities expenses - - - 1,030,325 - - - - - - Total primary government expenses $ 19,652,844 $ 19,674,710 $ 19,575,087 $ 21,001,629 $ 18,528,924 $ 19,618,746 $ 18,347,303 $ 17,220,925 $ 17,321,645 $ 16,431,868 Program revenues:

Governmental activities:

Charges for services:

General government $ 2,196,050 $ 1,842,754 $ 1,971,238 $ 1,529,005 $ 1,696,097 $ 1,555,791 $ 1,516,849 $ 1,446,541 $ 1,465,754 $ 536,706 Public safety - - - - - - - - 12,200 597,372
Code enforcement and animal control - - - - 205,715 200,452 344,716 417,392 324,518 277,134 Other activities 1,425,446 1,069,946 1,503,744 112,503 961,062 630,519 399,385 334,282 2,164,047 335,099 Operating contributions & grants 1,798,424 681,930 1,005,420 495,664 727,699 192,529 289,943 461,251 1,155,002 143,560 Capital contributions & grants 6,677,120 4,435,800 4,463,748 5,304,261 3,410,974 3,548,855 3,036,855 7,526,062 2,317,196 1,777,527 Total governmental activities program revenues 12,097,040 8,030,430 8,944,150 7,441,433 7,001,547 6,128,146 5,587,748 10,185,528 7,438,717 3,667,398 Business-type activities:

Charges for services
Community development - - - 742,704 - - - - - -
Total business-type activities program revenues - - - 742,704 - - - - - - Total primary government program revenues $ 12,097,040 $ 8,030,430 $ 8,944,150 $ 8,184,137 $ 7,001,547 $ 6,128,146 $ 5,587,748 $ 10,185,528 $ 7,438,717 $ 3,667,398 Net revenues (expenses):

Governmental activities (7,555,804) (11,644,280) (10,630,937) (12,529,871) (11,527,377) (13,490,600) (12,759,555) (7,035,397) (9,882,928) (12,764,470) Business-type activities - - - (287,621) - - - - - -
Total primary government net (expenses)/revenues $ (7,555,804) $ (11,644,280) $ (10,630,937) $ (12,817,492) $ (11,527,377) $ (13,490,600) $ (12,759,555) $ (7,035,397) $ (9,882,928) $ (12,764,470) City of Lawndale
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting (Continued)
123
Fiscal Year
2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
General revenues and other changes in net position:

Governmental activities:

Taxes:

Property tax, levied for general purpose 1,822,569 $ 1,729,089 $ 1,673,195 $ 1,526,604 $ 1,625,047 $ 1,415,740 $ 1,393,299 $ 1,264,229 $ 1,257,326 $ 1,207,732 $ Property tax, Redevelopment tax increment - - - - - - - - - - Property taxes in lieu of vehicle license fees 4,378,474 4,123,994 3,947,793 3,787,758 3,615,968 3,425,585 3,259,248 3,124,005 2,967,075 2,853,843 Transient occupancy tax 793,777 601,130 712,164 567,341 704,869 692,323 661,089 634,358 580,084 507,149 Sales tax 7,305,321 7,216,511 6,072,989 5,588,676 3,705,062 2,836,285 3,011,518 3,043,063 2,621,117 4,937,756 Franchise tax 932,970 885,280 856,705 801,028 762,816 746,337 719,734 760,317 600,595 577,720 Utility user tax 2,143,996 1,820,079 1,736,358 1,677,016 1,719,735 1,851,200 1,900,519 1,890,350 2,000,513 2,060,637 Investment income 694,577 (2,233) 337,610 587,119 - - - - 110,233 99,903 Extraordinary items - - - - 1,414,559 - - 5,042,253 - - Other general revenues 265,974 744,728 149,503 144,743 530,592 619,487 642,683 765,103 708,890 1,088,816 Transfers - - - (680,280)
Total governmental activities 18,337,658 17,118,578 15,486,317 14,000,005 14,078,648 11,586,957 11,588,090 16,523,678 10,845,833 13,333,556 Business-type activities:

Transfers - - - 680,280 - - - - - -
Total business-type activities program revenues - - - 680,280 - - - - - - Total primary government 18,337,658 17,118,578 15,486,317 14,680,285 14,078,648 11,586,957 11,588,090 16,523,678 10,845,833 13,333,556 Change in Net Position:

Governmental activities 10,781,854 5,474,298 4,855,380 1,470,134 2,551,271 (1,903,643) (1,171,465) 9,488,281 962,905 569,086 Business-type activities - - - 392,659 - - - - - -
Total primary government change in net position $ 10,781,854 $ 5,474,298 $ 4,855,380 $ 1,862,793 $ 2,551,271 $ (1,903,643) $ (1,171,465) $ 9,488,281 $ 962,905 $ 569,086 City of Lawndale
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
124
Fiscal Year
2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
General fund:

Nonspendable 3,525,445 $ 4,274,138 $ 5,344,922 $ 6,374,027 $ 7,702,065 $ 8,600,651 $ 9,452,893 $ 9,510,896 $ 11,504,529 $ 927,304 $ Restricted - - - - 10,613 10,241 9,769 9,191 8,463 7,718 Committed - - - 1,400,000 - - - - 2,810,000 3,013,384
Assigned - - - - - - - - 245,962 153,496
Unassigned 27,843,163 22,283,628 16,649,998 10,911,737 7,520,502 6,143,591 5,763,383 6,929,628 2,857,327 14,214,377 Total general fund $ 31,368,608 $ 26,557,766 $ 17,285,764 21,994,920 $ 16,633,180 $ $ 14,754,483 $ 15,226,045 $ 16,449,715 $ 17,426,281 $ 18,316,279 All other governmental funds:

Special revenue funds
Nonspendable $ 4,357,308 $ 5,177,987 $ - $ - $ - $ - -$ -$ $ - $ 487,083 Restricted 12,772,347 8,972,546 7,447,169 12,332,824 11,421,078 10,366,294 9,910,179 10,006,156 4,304,127 5,259,292 Committed - - - - - - - - - 7,495,609
Unassigned (109,279) (10,000) (9,960) (216,695) - (524,855) (490,001) (432,709) (701,781) (553,245) Capital project funds
Restricted 3,360,506 3,840,597 3,749,346 3,443,945 3,514,320 3,139,813 3,958,313 2,982,818 - - Unassigned (1,643) (256,204) 76,548 (426,003) (303,819) (565,264) (539,765) (1,280,168) - - Debt service funds - - - - - - -
Restricted - - 4,811 538,266 - - - - - -
Total all other governmental funds $ 20,379,239 $ 17,724,926 $ 15,672,337 11,267,914 $ 14,631,579 $ $ 12,415,988 $ 12,838,726 $ 11,276,097 $ 3,602,346 $ 12,688,739

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CITY OF LAWNDALE
2022-23 Assessed Valuation: $2,876,308,652
Total Debt City’s Share of
DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/23 % Applicable (1) Debt 6/30/23 Metropolitan Water District $19,215,000 0.079 $ 15,180
El Camino Community College District 463,537,057 2.064 9,567,405 Centinela Valley Union High School District 236,570,062 11.598 27,437,396 Centinela Valley Union High School District
School Facilities Improvement District 221,670,000 13.057 28,943,452 Hawthorne School District 66,407,561 0.501 332,702
Lawndale School District 34,935,000 59.899 20,925,716
City of Lawndale 0 100. 0
TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT $87,221,851 OVERLAPPING GENERAL FUND DEBT:

Los Angeles County General Fund Obligations $2,601,551,282 0.152% $ 3,954,358 Los Angeles County Superintendent of Schools General Fund Obligations 3,403,487 0.152 5,173 Centinela Valley Union High School District Certificates of Participation 6,420,000 22.338 1,434,100 Hawthorne School District Certificates of Participation 10,220,000 0.501 51,202 Los Angeles County Sanitation District No. 5 Authority 1,269,835 2.127 27,009 TOTAL OVERLAPPING GENERAL FUND DEBT $5,471,842
OVERLAPPING TAX INCREMENT DEBT (Successor Agency): $17,120,000 100. % $17,120,000 TOTAL DIRECT DEBT $0
TOTAL OVERLAPPING DEBT $109,813,693
COMBINED TOTAL DEBT $109,813,693 (2)
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value.
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations. Qualified Zone Academy Bonds are included based on principal due at maturity.

Ratios to 2022-23 Assessed Valuation:

Total Direct Debt ($0) ....................................................................0.00% Total Direct and Overlapping Tax and Assessment Debt .................3.03% Combined Total Debt .......................................................................3.82% Ratio to Successor Agency Redevelopment Incremental Valuation ($1,025,165,449) Total Overlapping Tax Increment Debt............................................1.67%

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City of Lawndale
Principal Employers
Current Year and Ten Years Ago
135
2023 2014
Number of Percent of Total Number of Percent of Total
Employer Employees City Employment Employees City Employment Lawndale Elementary School District* 624 3.65%
Centinela Valley Union High School District* 545 3.19%
Target Store 89 0.52%
VCA Advanced Veterinary Care Center** 75 0.44% 57 1.95% El Super Grocery Store #43** 72 0.42% 90 3.08%
City of Lawndale 70 0.41% 99 3.38%
Jones Management Hawthorne Inc 70 0.41%
Options For Life Inc 50 0.29% 46 1.57%
El Pollo Inka 38 0.22% 45 1.54%
Smart & Final Extra** 38 0.22% 44 1.50%
Carbro Corporation 44 1.50%
Big Saver Foods 46 1.57%
Boston Market Corporation 51 1.74%
99 Cents Only Store 42 1.44%
Source: City 2023 Business License
2014 Source: Previously published ACFR -2014
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

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City of Lawndale
Full-Time Equivalent City Employees by Function
Last Ten Fiscal Years
140
Function 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 General government 39 31 26 39 39 39 39 39 38 38
Public safety 13 19 16 15 16 16 16 16 15 15
Community development34 4 4 4 4 5 5 6 6
Culture and leisure 15 11 13 40 40 40 40 40 40 40
Total 70 65 59 98 99 99 100 100 99 99
Source: City of Lawndale, Finance Department

11 ... _of lAW,i,o.,,
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DATE:

TO:

FROM:

PREPARED BY:

SUBJECT:

BACKGROUND

CITY OF LAWNDALE
14717 BURIN AVENUE, LAWNDALE, CALIFORNIA 90260
PHONE (310) 973-3200 ♦ www.lawndalecity.org
March 4, 2024
Honorable Mayor and City Councy ~
Sean M. Moore, City Manaef
Michael Reyes, Municipal Services Director i;,;ZRequest to have Mayor sign Certifications and Assurances form as required by the U.S. Department of Justice to receive Edward Byrne Memorial Justice Assistance Grant ("JAG") award.

Recently Staff applied for the Edward Byrne Memorial Justice Assistance Grant ("JAG") Program. The JAG program is a grant sponsored by the U. S. Department of Justice which awards funds to be used for Law Enforcement focused projects. As a condition of the grant the applicant must include a Certifications and Assurances form, signed by the Chief Executive of the Applicant Government.

The U.S. Department of Justice recognizes the Chief Executive to be the Mayor of Lawndale.

STAFF REVIEW
Staff have completed the application process for the JAG program grant but were notified that the Mayor is considered the Chief Executive oflocal municipalities and therefore the Certifications and Assurances form must have his signature.

A condition of the grant also requires that the Public be made aware of this award.

LEGAL REVIEW
The City Attorney has reviewed this staff report and approves it as to form.

FISCAL REVIEW
Staff anticipates no costs to the City for the fulfillment of this Applicant requirement. 12 City Council Meeting March 4, 2024
Request to have Mayor sign Certifications and Assurances form as required by the U. S. Department of Justice to receive Edward Byrne Memorial Justice Assistance Grant ("JAG") award.

RECOMMENDATION
Staff recommends that the City Council authorize the Mayor to sign the Certifications and Assurances form as required by the U.S. Department of Justice.

Attachment: Certifications and Assurances form
2 ATTACHMENT
U.S. DEPARTMENT OF JUSTICE

OFFICE OF JUSTICE PROGRAMS
Edward Byrne Memorial Justice Assistance Grant Program FY 2023 Local Solicitation Certifications and Assurances by the Chief Executive of the Applicant Government On behalf of the applicant unit of local government named below, in support of that locality's application for an award under the FY 2023 Edward Byrne Memorial Justice Assistance Grant ("JAG") Program, and further to 34 U.S.C. § 10153(a), I certify to the Office of Justice Programs ("OJP"), U.S. Department of Justice ("USDOJ"), that all of the following are true and correct:

1. I arn the chief executive of the applicant unit of local government named below, and I have the authority to make the following representations on my own behalf as chief executive and on behalf of the applicant unit of local government. I understand that these representations will be relied upon as material in any OJP decision to make an award, under the application described above, to the applicant unit of local government.

2. I certify that no federal funds made available by the award (if any) that OJP makes based on the application described above will be used to supplant local funds, but will be used to increase the amounts of such funds that would, in the absence of federal funds, be made available for law enforcement activities.

3. I assure that the application described above (and any amendment to that application) was submitted for review to the governing body of the unit of local government (e.g., city council or county commission), or to an organization designated by that governing body, not less than 30 days before the date of this certification.

4. I assure that, before the date of this certification- (a) the application described above (and any amendment to that application) was made public; and (b) an opportunity to comment on that application (or amendment) was provided to citizens and to neighborhood or community-based organizations, to the extent applicable law or established procedure made such an opportunity available.

5. I assure that, for each fiscal year of the award (if any) that OJP makes based on the application described above, the applicant unit of local government will maintain and report such data, records, and information (programmatic and financial), as OJP may reasonably require.

6. I have carefully reviewed 34 U.S.C. § 10153(a)(5), and, with respect to the programs to be funded by the award (if any), I hereby make the certification required by section 10153(a)(5), as to each of the items specified therein.

Signature of Chief Executive of the Applicant Unit of
Local Government
Printed Name of Chief Executive
Name of Applicant Unit of Local Government
Date of Certification
Title of Chief Executive
Rev. April 21, 2023
DATE:

TO:

FROM:

PREPARED BY:

SUBJECT:

BACKGROUND

CITY OF LAWNDALE
14717 BURIN AVENUE, LAWNDALE, CALIFORNIA 90260
PHONE (310) 973-3200 ♦ www.lawndalecity.org
March 4, 2024
Honorable Mayor and City Counci1 /
Sean M. Moore, City Manag~
Michael Reyes, Municipal Services Director ;;,;-
Recommendation to Expand Contract with Southwest Patrol to Implement Seven Day Coverage by Armed Security Guards
In 2023, to assist Sheriffs Deputies with their patrol duties, and to address quality oflife issues the City of Lawndale entered a contract with Southwest Patrol to provide an armed security guard to patrol City facilities and address issues involving the homeless and illegal vending. Since patrols from the Armed Security guards began, the City has seen a noticeable reduction in homeless individuals as well as a dramatic reduction in the number of illegal food trucks and vendors.

Due to the success of this program, Staff is seeking to expand the presence of Southwest Patrol to include daytime shifts, seven days a week.

STAFF REVIEW
Since starting with the City in July of 2023, Southwest Patrol has been patrolling City buildings, parks and City streets to provide additional safety and security for the City of Lawndale. Patrols include multiple nightly checks of all City parks, City facilities and public streets, with additional emphasis being placed on addressing any illegal activity from unlicensed vendors and contacting homeless attempting to camp in public areas.

Southwest Patrol has brought a highly visible and very effective security presence to the City of Lawndale and staff recommend expanding the presence of Southwest Patrol to include coverage seven days a week. Due to the success of the armed security program, the City Council agreed to expand the coverage provided by Southwest Patrol. At the October 16, 2023 City Council meeting, the City Council approved additional funding to increase coverage from three nights per week to five nights per week, which proved to be equally successful in diminishing illegal activity from unlicensed vendors, and helped to further minimize the presence of homeless individuals camping on public places.

Staff is recommending that by adding additional daytime patrols, specifically between the hours of8:00 am until 4:00 pm, this will further discourage homelessness from becoming an issue within Lawndale.

Staff is recommending coverage be provided seven days a week during these hours at a cost of $50 per guard per hour. This would result in a cost of$49,000 for the remainder of Fiscal Year 23/24 with an added $146,000 to cover the cost of one armed guard for 8 hours a day, for seven days a week for fiscal year 24/25.
13 City Council Meeting March 4, 2024
Recommendation to Expand Contract with Southwest Patrol to Implement Seven Day Coverage by Armed Security Guards
Currently, all homeless outreach is done by MSD staff, with twice daily patrols lasting an hour each.

This amounts to roughly eight hours per week for two MSD employees, or twenty percent of those employees work weeks.

Bringing on an additional armed security guard will allow all daytime homeless outreach actions to be re-assigned to the guard and free up City staff to do their regularly assigned duties.

Should the City Council approve Staff recommendation to increase armed security services by Southwest Patrol, this would constitute the second amendment to the original contract with Southwest Patrol.

Therefore, staff will provide both amendments to the City Council to be authorized on Consent at a later date.

LEGAL REVIEW
No legal review is necessary, as the contract terms will not be changing. The City Attorney has reviewed this staff report.

FISCAL REVIEW
A budget amendment to account 285-300-530.100 for $49,000 is needed for the remainder of FY 23/24, with an additional $146,000 needed for fiscal year 24/25 to provide 8 hours of coverage, for seven days a week from now through the end of fiscal year 2025. Funding will come from ARP A as these are safety and security services for the City.

RECOMMENDATION
Staff recommends one of the following options:

Option 1) The City Council approve funding to expand the contract with Southwest Patrol for additional security coverage for one year of continuous armed services and approve the budget amendment for $195,000 in account 285- 300-530.100.

Option 2) The City Council approve funding to expand the contract with Southwest Patrol for additional security coverage for the remainder of fiscal year 23/24 in the amount of$49,000 and then reassess the effectiveness of the daytime guard at the end of fiscal year 23/24.

Option 3) The City Council provide direction for a different option with recommendations for the number of hours and days they would like to provide armed protection services.
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March 4, 2024
TO:

FROM:

PREPARED BY:

SUBJECT:

BACKGROUND

CITY OF LAWNDALE
14717 BURIN AVENUE, LAWNDALE, CALIFORNIA 90260
PHONE (310) 973-3200 ♦ www.lawndalecity.org
Honorable Mayor and City Councf /
Sean M. Moore, City Manag~
Mike Estes, Director of Community Services (@)
Amendment to California State 2018 Parks Bond Act Per Capita Grant Program In April 2022, the City and California Natural Resources Agency (CNRA) entered in to an agreement to accept $198,387.00 in 2018 Parks Bond Act monies to fund the City's Recreation Facility Security Camera Replacement Project.

STAFF REVIEW
The City's Recreation Facility Security Camera Replacement Project has been completed to the satisfaction of the State. On Wednesday, Febrnary 21, 2024 City staff met with the City's State Grant Officer and toured the four locations at which the project has been completed. This satisfies one element of the grant closeout process.

The grant closeout process has a second element, the reimbursement phase, which must be completed in March. City staff is working on this element which requests a reimbursement of $198,387.00 from the State for all project costs paid for by the City.

The two existing agreements with the State, Contract Numbers C9801318 in the amount of $177,952.00 and C9802118 in the amount of$20,435.00 for a total of $198,387.00 are due to expire on June 30, 2024.

I have been encouraged by the City's State Grant Officer to get contract amendments is place in case the State's reimbursement process lags slower than usual and beyond the expiration date of the existing agreements, or June 30, 2024.

Although the State has confirmed that three months (April 1 - June 30) has typically been enough time for the State to issue reimbursements, City staff agrees that it is a very good idea to complete contract amendments for both existing agreements in case the State's reimbursement activities rnn slower than usual. This is the safest approach so the City does not risk being in possession of expired agreements without appropriate reimbursement

LEGAL REVIEW
Although the State contracts are unchangeable, the City Attorney has reviewed the attached California State Amendment to Contract C98013 18 and C9802118 as to form.

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Lawndale City CouncilMarch 4, 2024

Lawndale City Council
March 4, 2024